Annual Report 2014Annual Report 2014

CLOSEMENU

Financial Results

Taking a broad overview of the electronics market, which has a bearing on the consolidated business results of TDK, the production of smartphones, which have been experiencing increasing demand, was driven largely by the release of new device models by major manufacturers, thereby raising production levels significantly over the last fiscal year. The production of tablet devices, which also saw an increase in demand, similarly demonstrated considerably elevated levels over the previous fiscal year. Propped up by brisk sales in the United States, the production of automobiles in the market as a whole increased over the last fiscal year. Additionally, the market environment for industrial equipment also gradually improved over the previous fiscal year due to a recovery in capital expenditure for the likes of semiconductor manufacturing equipment and FA equipment.
Meanwhile, although last-minute demand prior to the consumption tax hike in Japan appeared to help push up demand for PCs slightly in that country, as a whole, PC production levels fell below those during the previous fiscal year under the impact of growth in the tablet device market. For hard disk drives (HDDs) as well, although there were signs of an increase in demand for HDDs for next-generation game consoles as well as HDDs for PCs spurred by the end of support for Windows XP, production levels for HDDs fell relative to the last fiscal year, during which special demand prompted by the large floods in Thailand was temporarily present.
Amid such operating conditions, the consolidated business results of the TDK Group came to ¥984,525 million in net sales, a year-on-year increase of 16.9% over the ¥841,847 million in net sales reported for the previous fiscal year, and ¥36,616 million in operating income, a year-on-year increase of 66.0% over the ¥22,054 million in operating income reported for the previous fiscal year.

Net Sales(millions of yen)
Operating Income(millions of yen)
Net Income(millions of yen)

*FY2011: Fiscal year ended March 2011

Note: Operating results relating to the data tape business and Blu-ray business are separately presented as discontinued operations in consolidated statements of income for FY2014. Also reclassifications are made to consolidated statement of income for FY2012 and FY2013 to conform to the presentation used for FY2014.

Sales by Segment

  • Passive Components47.9%
  • Magnetic Application Products37.0%
  • Film Application Products13.1%
  • Other2.0%
Passive ComponentsNet Sales(billions of yen)
Magnetic Application ProductsNet Sales(billions of yen)
Film Application
Products
Net Sales(billions of yen)
OtherNet Sales(billions of yen)

*FY2013: Fiscal year ended March 2013

Financial Highlights

Years ended March 31 or as of March 31

(millions of yen)

  FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
Net Sales 655,792 657,853 795,180 862,025 866,285 727,400 805,194 871,943 802,534 841,847 984,525
(Overseas sales) 487,169 473,828 621,522 690,673 714,172 610,944 703,190 763,046 691,962 736,015 890,520
Cost of sales 476,407 484,323 585,780 622,819 635,529 605,943 614,341 654,180 624,271 668,258 763,572
Selling, general,

and administrative expenses
122,875 119,886 142,052 159,106 158,921 159,878 158,976 153,442 157,886 151,535 184,337
Transfer to the government
of the substitutional portion

of the Employees'
Pension Fund:
                     
Subsidy from
the government
  (33,533)                  
Loss on settlement   27,347                  
Gain on sales of business to
Imation Corp.
        (15,340)            
Restructuring cost 6,825 510 15,884 4,922
Production realignment cost                 6,570
Realignment-related gain;

Sale of properties
                (6,732)
Operating income (loss) 56,510 59,830 60,523 79,590 87,175 (54,305) 26,955 64,321 20,539 22,054 36,616
Income (loss) before
income taxes
      88,665 91,505 (81,630)          
Income (loss) from
continuing operations

before income taxes
55,847 60,728 66,103       23,088 60,620 14,668 19,765 39,772
Income taxes 12,133 23,284 21,057 16,985 19,948 (17,041) 9,401 15,105 11,970 14,616 17,936
Income (loss) from
continuing operations
43,355 36,965 44,411       13,687 45,515 2,698 5,149 21,836
Loss (income) from
discontinued operations
1,254 3,665 310       (805) (511) (4,399) (619) (3,602)
Net income (loss)
attributable to TDK
42,101 33,300 44,101 70,125 71,461 (63,160) 13,520 45,264 (2,454) 1,195 16,288
  FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
Per common share (Yen):                      
Net income (loss)
attribute to TDK basic
317.80 251.71 333.50 529.88 551.72 (489.71) 104.82 350.90 (19.06) 9.50 129.47
Net income (loss)
attributable to TDK diluted
317.69 251.56 333.20 529.29 551.19 (489.71) 104.74 350.57 (21.42) 5.36 120.97
Net cash flow 700.46 650.47 775.50 1,022.45 1,101.11 204.75 750.77 948.98 589.91 623.37 787.06
Net assets 4,352 4,832 5,311 5,759 5,557 4,297 4,215 4,142 3,957 4,460 5,049
                       
Dividends per
common share (Yen)
55.00 70.00 90.00 110.00 130.00 130.00 60.00 80.00 80.00 70.00 70.00
Payout ratio (%) 17.3 27.8 27.0 20.8 23.4 57.2 22.8 736.8 54.1
                       
Total assets 770,319 808,001 923,503 989,304 935,533 1,101,036 1,091,458 1,060,853 1,072,829 1,169,642 1,239,589
Stockholders' equity 576,219 639,067 702,419 762,712 716,577 554,218 543,756 534,273 498,159 561,169 635,327
                       
Working capital 360,555 379,746 397,131 449,830 300,859 281,536 286,370 199,186 219,918 232,693 279,504
Capital expenditures 44,471 61,005 73,911 70,440 84,312 98,425 64,370 78,638 99,653 85,606 68,606
Depreciation and
amortization
50,726 52,806 58,540 65,337 71,297 89,567 83,392 77,264 78,492 77,369 82,893
Research and
development
32,948 36,348 45,528 50,058 57,387 57,645 53,874 52,608 51,968 53,520 63,385
                       
Ratio of overseas
production to net sales (%)
58.6 59.0 61.7 62.2 70.1 74.0 80.5 83.7 85.8 82.5 86.7
Number of employees 36,804 37,115 53,923 51,614 60,212 66,429 80,590 87,809 79,175 79,863 83,581