Sustainability | Sustainability Management | TDK Group's MaterialityAsset Efficiency Improvement

Background to Identification as Materiality

Significance for TDK

The appropriate distribution of management resources will lead to the TDK Group’s growth and the continual improvement of income befitting capital costs. Furthermore, while core businesses will remain our profit base, appropriately channeling management resources into businesses that, although not yielding adequate profit at present, have the potential to grow and develop in the future can be expected to lead to the growth of new profit-generating businesses.

Significance for Society

By distributing even more management resources in a priority manner to businesses that can contribute to society, and by implementing measures to realize optimum reconstruction strategies in not only core businesses but also challenging businesses and noncore businesses, we can supply even more value to society.

Overview (Themes, responsible department, goals, KPIs, and progress)

Themes Responsible department Goals in 3 years Action items KPIs Medium-term target*
(Fiscal 2022-2024) 		Progress of Fiscal 2022 Progress of Fiscal 2023
Rebuild business portfolio Corporate Planning Group Through the implementation of various measures to improve asset efficiency, for example, the following indicators have been achieved.
  • OP margin: 12% or more
  • ROE: 14% or more
  • Capex (3 years): 750 billion yen
  • Reduce operating losses by promoting withdrawal/shrinkage and structural reform in priority challenging businesses based on business portfolio management
  • Effectively use R&D costs by setting new, continuation, and withdrawal criteria for R&D themes
 OP margin 12% or more 8.8% 7.7%
ROE 14% or more 11.6% 8.3%
Optimize facilities and manufacturing sites
  • Optimize capital investment to facilities and sites categorized in business portfolio management as “carefully controlled” or “improvement required”
Capex (3 years) 750 billion yen 291.3 billion yen 275.7 billion yen

*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

Department Head Message

Corporate Planning Group, Corporate Strategy HQ

Shuichi Hashiyama

Based on the rules of business portfolio management, from the perspectives of both capital profitability and business potential, including market trends, we will aim for the further growth of core businesses and the profitability of challenging businesses while continuing the priority distribution of management resources to each business.
Regarding businesses considered to be challenging from the perspective of business portfolio management, we see the problems at present as a lack of clarity in the exit strategy process and the inadequate understanding of operating information for existing facilities and manufacturing sites. As a three-year roadmap, therefore, we will study our response policies in each business deemed to be challenging and achieve the targets for return on assets (ROA) and tangible fixed asset turnover rate. In addition, regarding information about facilities and manufacturing sites, we will overcome the problem by defining the necessary operating information and stipulating methods of collection.