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Notice Regarding Waiver of Claims to Consolidated Subsidiary

March 24, 2021

TDK Corporation (TSE: 6762, President and CEO: Shigenao Ishiguro, hereinafter “the Company”) announces that a meeting of its Board of Directors held on March 24, 2021 decided to waive some of its claims against TDK U.S.A. Corporation, which is a consolidated subsidiary of the Company. Details are as follows.

1. Reasons for Waiver of Claims

The Company will waive its claims to strengthen the financial position of TDK U.S.A. Corporation, which is the U.S. subsidiary of the Company.

2. Profile of the subsidiary

(1) Name TDK U.S.A. Corporation
(2) Location 455 RXR Plaza Uniondale, NY 11556 U.S.A.
(3) Representative President: Jeffrey Williams
(4) Business Regional headquarters in the Americas
(5) Capital 850 US dollars
(6) Date of Establishment September 4, 1981
(7) Net assets in the immediately preceding fiscal year 1,663 million US dollars
(8) Total assets in the immediately preceding fiscal year 2,318 million US dollars
(9) Major shareholders and their ownership percentages TDK Corporation: 100%
(10) Relationship between the Company and TDK U.S.A. Corporation Capital relationship TDK U.S.A. Corporation is the wholly owned subsidiary of the Company.
Personnel relationship A Director of the Company serves concurrently as Director of TDK U.S.A. Corporation.
Business relationship The Company lends funds to TDK U.S.A. Corporation.
Related Parties TDK U.S.A. Corporation is a consolidated subsidiary of the Company and falls under a related party.

3. Details of claims to be waived

(1) Type of claims Loans
(2) Amount of claims 210 million US dollars (approximately 22.1 billion yen)
(3) Date of waiver March 31, 2021

※Currency exchange rate is 105 Japanese yen / 1 US dollar

4. Outlook

The Company plans to record 22.1 billion yen, which is the amount of this waiver of claims, as an extraordinary loss in its nonconsolidated financial results for the fiscal year ending March 31, 2021. The extraordinary loss pertaining to this waiver of claims will be recorded in the nonconsolidated financial statements only and will not affect consolidated income as it will be offset/eliminated in the consolidated financial statements.

(Reference) TDK’s Consolidated Forecasts for the Fiscal Year Ending March 31, 2021 (as of January 29, 2021) and Results for the Previous Fiscal Year

(Yen million) Net sales Operating income Income before income taxes Net income attributable to TDK
Forecasts for the year ending March 2021 1,450,000 110,000 116,000 76,000
Results for the year ended March 2020 1,363,037 97,870 95,876 57,780

Contacts for regional media

Contact Phone Mail
Mr. Kazushige ATSUMI TDK Corporation
Tokyo, Japan
+813 6778-1055