TDK Where We Stand

TDK 29 29 3 Where We Stand

Stepping Up to Change TDK1935

... 2 Paving the Way to Reinvention... 3 EPCOS AG... 6... 1... 12... 12... 13... 14... 15... 16... 17... 17... 22... 23... 24... 26... 42... 44 TDK TDK TDK TDK TDK TDK TDK Corporation Annual Review 29 1

1 1 3 31 13 31 29 28 29 %................................... 727,4 866,285 $ 7,422,449 16................................ 145,111 2,11 1,48,724 27.5............................ 166,164 29,89 1,695,551 2.5............................ 247,233 334,734 2,522,786 26.1................................. 168,892 122,361 1,723,388 38............................. 61,944 714,172 6,234,122 14.5.......................... (63,16) 71,461 (644,49) 1................................. (489.71) 551.72 (5.)............................. (489.71) 551.19 (5.) 1........................... 13. 13. 1.33................................. 1,11,36 935,533 $11,235,61 17.7................................. 554,218 716,577 5,655,286 22.7.......... 21,83 152 2,143,74.............................. 74.% 7.1.............................. 16.7 26.6............................... (7.5) 1.1 ROE...................... (9.9) 9.7 PER.......................... 1.7 1. 2. 1 98 % ROE % 1, 8, 6, 6,579 7,952 8,62 8,663 7,274 12 8 4 9.1 7.6 9.2 1.1 12 8 4 5.5 6.6 9.6 9.7 4, 4 4 2, 8 (7.5) 8 5 6 7 8 9 12 5 6 7 8 9 12 (9.9) 5 6 7 8 9 2 TDK Corporation Annual Review 29

Paving the Way to Reinvention 29 3 2 7,9535 3 EPCOS AG EPCOS6 16.%7,274 38 543 5871 75 174 631 6714 61 TDK Corporation Annual Review 29 3

113 21IT 28 4 HDD EPCOS EPCOS EPCOS EPCOS EPCOS PC EPCOS EPCOS 4 TDK Corporation Annual Review 29

EPCOS VAVE TDK DC-DC DC-DC DC-DC 29 7 TDK TDK Corporation Annual Review 29 5

28 1EPCOS AG 29 1 1 1%EPCOS AG 28 7 31 Pegam * * PC IT TDK-EPC 29 1 1 TDK-EPC EPCOS AG TDK-EPCEPCOS 6 TDK Corporation Annual Review 29

EPCOS AG EPCOS AG EPCOS AGSAW EPCOS AG HDD EPCOS AG SAW EPCOS AG SAW EPCOS AGMEMS Micro Electro Mechanical Systems * * EPCOS AG PC EPCOS AG& & TDK EPCOS TDK Corporation Annual Review 29 7

PC EPCOS AG SAW EPCOS AG EPCOS AG EPCOS AG TDK EPCOS AG EPCOS AG EPCOS AG 2 65% EPCOS AG28 9 25% Sumperk 4% 6% NAFTA* *NAFTA Nashik Gravatai 8 TDK Corporation Annual Review 29

EPCOS AG EPCOS AG DVD EPCOS AGSiemens AG Siemens AG 21,19528 9 3 28 927 1 128 9 3 1,478 644.4% 1,395 67548.4% & SAW SAW 27% & 39% 11% 27% 1,5 1,439 1,478 75 64 28 9 16% 28 9 1, 5 51 5 25 34% 23% 23% 27 28 9 27 28 9 TDK Corporation Annual Review 29 9

29 37,274 8,662 8516.% PC3 29 3 27.5% 29 3 2.5% HDD HDD 29 3 26.1%HDD HDD EPCOS 29 3 38.%EPCOS 679 83 1 TDK Corporation Annual Review 29

28 1 17 EPCOS AGEPCOS EPCOS 29 3 28 3 27 3 26 3 25 3 5 1, 1,5 2, 2,5 3, 3,5 29 3 2.% 29 3 28 3 27 3 26 3 25 3 5 1, 1,5 2, 2,5 3, 3,5 29 3 22.8% 29 3 28 3 27 3 26 3 25 3 5 1, 1,5 2, 2,5 3, 3,5 29 3 34.% 29 3 28 3 27 3 26 3 25 3 5 1, 1,5 2, 2,5 3, 3,5 29 3 23.2% TDK Corporation Annual Review 29 11

2,5 2, 1,5 1, 5 7 8 9 29 3 2.% 2 1,451 11 2,1 1 27.5% PCAV 12 TDK Corporation Annual Review 29

2,5 2, 1,5 1, 5 7 8 9 29 3 22.8% 3 1,661 64 2,9 89 2.5% EMC PC EMC 2 EMC Electromagnetic Compatibility EMC VCO ACDC DC-AC DC-DC TDK Corporation Annual Review 29 13

3,5 3, 2,5 2, 1,5 1, 5 29 3 34.% HDD2 2,472 33 3,347 34 26.1% HDDHDD HDD 27 11 HDD 7 8 9 HDD HDD HDD GMR Giant Magnetoresistive TMR Tunneling GMR 14 TDK Corporation Annual Review 29

2, 1,5 1, 5 29 3 23.2% 3 1,688 92 1,223 61 38.%EPCOS 679 83 EPCOS 7 8 9 TDK Corporation Annual Review 29 15

3 DVD EMC SQ Headway Technologies, Inc. HDD.4%57,645 7.9% EMC % SQ 6 5 4 3 363 455 51 574 576 1 8 6 5.5 5.7 5.8 6.6 7.9 2 4 1 2 5 6 7 8 9 5 6 7 8 9 16 TDK Corporation Annual Review 29

CSR ERM TDK Corporation Annual Review 29 17

1 1 1935 3. 4. CSR CSR 1. 53 2. 7 3 18 TDK Corporation Annual Review 29

2 1 3 ERM IT 2 3 4 TDK Corporation Annual Review 29 19

IT 7 5 CSR 8 9 6 2 TDK Corporation Annual Review 29

CSR 1 TDK http://www.tdk.co.jp/tjaaa1/aaa7.htm TDK Corporation Annual Review 29 21

TDK215 27 3 28 3 CO 2 211 3CO 27%1991 3 1 5 TDK 215 2 3 4 28 5 29 3 ECO LOVE ECO LOVE28 9 ECO LOVE ECO LOVE SUPER ECO LOVE http://www.tdk.co.jp/ecolove/ 22 TDK Corporation Annual Review 29

4TDK NPO NGO TDK TDK (Thailand) Co., Ltd. TDK Corporation Annual Review 29 23

29 6 26 Raymond Leung 24 TDK Corporation Annual Review 29

Robin Zeng TDK Corporation Annual Review 29 25

... 27... 34... 38... 39... 4... 41 29 6 26 http://www.tdk.co.jp/ir/library/lib4.htm 26 TDK Corporation Annual Review 29

29 3 31 29 3 123 443 EPCOS 27 8TDK PC 1 2 1,451 11 2,1 1 27.5% PC AV EPCOS AG 28 1 17 7,274 8,662 8516.%543 5 871 75 816 3 915 5631 6 714 611 489 71551 72 EPCOS EPCOS 2 3 1,661 64 2,9 89 2.5% EMC PC TDK Corporation Annual Review 29 27

PC 791 644 591 2821.4% 717 78 EPCOS 3 HDD2 2,472 33 3,347 34 26.1% HDD HDD HDD HDD 5,587 57 17.7%4,6 2 3 EPCOS 7,141 72 14.5%6,19 44 82.4%1.684.% 27 11 HDD 1.684.% 4 3 1,688 92 1,223 6138.%EPCOS 679 83 EPCOS 12.% 1.8% 798 189 21 25817 76 13 1 54 51 798 1,521 1323.4%1,164 563 962 8717.8% 15.9%26.9% 47.2% 7.1%74.% 28 TDK Corporation Annual Review 29

85.1%88.1% 6 5% 158 84 316 55 43 4EPCOS AG 21 18 189 8 21.8% 2.9% 631 6 1 6,355 29 4.7%6,59 43 73.4%83.3% EPCOS AG 1,92 99 47.4%16.7% 1,589 21 9 57 1,598 78 18.3%22.% 156 77 EPCOS AG 68 71EPCOS AG EPCOS AG55 19 573 872 58 576 456.6% 7.9% 489.71 ROE9.7% 9.9% 1,655 3 9,355 331 1,1 36EPCOS 168 68 814 96251 78 246 16 642 99 228 14 344 7 336 67 3,227 23 2,152 72 5,379 95EPCOS AG 621 51 32 3 2,99 31 29 1 84 TDK Corporation Annual Review 29 29

64 17 1,623 59 7,165 77 5,542 18 83 97 811 58 4 1,657 5 62 24 591 89 631 6 182 7 2,49 6395 31 18 562,238 3 84 895 67 EPCOS695 37 563 18 284 1 1,178 29 2,755 76 141 13984 25 78 1248 48 1,179 64 156 89 843 12 141 13 984 25 HDD 2,838 89 392 5 156 836 86 EPCOS AG 3 TDK Corporation Annual Review 29

2. 2,76 66 3.4 EPCOS AG 2,755 76 1,284 35 6 CMS 28 617 28 1217 29 3 29 616 1 1 114 28 3 3129 3 31 3,261 79 4,276 4734.9% 38.8% TDK Corporation Annual Review 29 31

142 2.%6.2% 3.%7.1% 32 TDK Corporation Annual Review 29

TDK Corporation Annual Review 29 33

29 6 26 HDD PC IT 8% 34 TDK Corporation Annual Review 29

ISO International Organization for Standardization ISO91 TDK Corporation Annual Review 29 35

M&A B TO B B to B M&A M&AM&A 36 TDK Corporation Annual Review 29

IT TDK Corporation Annual Review 29 37

TDK 3 31 29 28 29.......................................... 165,75 166,15 $ 1,69,867.................................................. 23,993 1,179 244,827.................................................. 17,968 3,986 183,347.................................................. 122,711 157,118 1,252,153................................................. 15,684 88,816 1,78,48.................................................. 13,85 1,34 133,52............................................... 919.................................. 32,11 43,357 326,643.......................................... 481,157 462,82 4,99,765....................................................... 35,47 68,714 357,623................................................. 348,645 267,149 3,557,62..................................................... 55,198 3,2 563,245................................................. 87,938 63,322 897,326................................................. 75,556 11,257 77,98................................................ 17,495 32,251 178,52............................................. 1,11,36 935,533 $11,235,61 29 28 29............................................... 71,49 8,898 $ 724,99................................ 3,497 294 35,684.................................................. 5,97 76,391 52,12............................................... 21,611 23,858 22,52................................................. 41,73 39,976 425,541.................................................. 1,942 7,66 19,816............................................ 8,849 4,884 9,296.......................................... 199,621 161,961 2,36,949........................... 21,83 152 2,143,74............................................. 98,7 33,99 1,,71................................................. 14,284 5,998 145,755............................................. 16, 13,171 163,266............................................. 537,995 215,272 5,489,745................................................. 8,823 3,684 9,3 48,, 29129,59,65928129,59,659 29128,979,38728128,955,736... 32,641 32,641 333,71................................................. 64,257 63,887 655,684................................................. 2,772 19,51 211,959.......................................... 65,622 688,719 6,179,816.................................. (162,741) (81,583) (1,66,622) 29611,27228634,923................ (6,333) (6,597) (64,622).............................................. 554,218 716,577 5,655,286............................ 1,11,36 935,533 $11,235,61 1 98 38 TDK Corporation Annual Review 29

TDK 3 31 1 29 28 29...................................................... 727,4 866,285 $7,422,449.................................................... 65,943 635,529 6,183,92.............................................. 121,457 23,756 1,239,357.......................................... 159,878 158,921 1,631,48...................................... (15,34)....................................... 15,884 162,82.......................................... (54,35) 87,175 (554,133)....................................... 3,98 8,284 4,612................................................... (2,336) (218) (23,836)............................................ (17,11) 1,969 (173,582)....................................... (6,388) (2,81) (65,184).......................................... (5,392) (3,67) (55,2).................................................... (178) 46 (1,816)...................................................... (27,325) 4,33 (278,826)................................... (81,63) 91,55 (832,959).................................................... (17,41) 19,948 (173,888)............................. (64,589) 71,557 (659,71)................................................. (1,429) 96 (14,581)........................................ (63,16) 71,461 $ (644,49) 1.................................................... (489.71) 551.72 $(5.)................................................. (489.71) 551.19 (5.)........................... 128,974 129,525......................... 124........................ 128,974 129,649................................................. 14. 12. 1.43 1 98 TDK Corporation Annual Review 29 39

TDK 3 31 1 29 28 29................................................. 32,641 32,641 $ 333,71........................................................................................... 32,641 32,641 333,71................................................. 63,887 63,695 651,98.......................... 333 375 3,398............................. 37 (134) 378............. (49).......................................... 37 192 3,776................................................. 64,257 63,887 655,684................................................. 19,51 18,844 199,81....................................... 1,262 666 12,878.......................................... 1,262 666 12,878................................................. 2,772 19,51 211,959................................................. 688,719 671,35 7,27,745............................................... (18,56) (15,683) (184,245)....................................... (1,262) (666) (12,878).......................................... (63,16) 71,461 (644,49)............................................ (37,41).................................. (153) (333) (1,561) 158........... (466) (4,755).......................................... (83,97) 17,369 (847,929)................................................. 65,622 688,719 6,179,816................................................. (81,583) (17,846) (832,48)............................................ (42,46) (55,757) (429,4)............................................ (39,8) (4,684) (398,41)................................... (14) (3,296) (1,61).......................................... (81,158) (63,737) (828,142)................................................. (162,741) (81,583) (1,66,622)................................................. (6,597) (5,972) (67,316)............................................ (15) (39,25) (153)............................................ 37,41.................................. 279 1,215 2,847.......................................... 264 (625) 2,694................................................. (6,333) (6,597) (64,622)............................................... 554,218 716,577 $ 5,655,286 1 98 4 TDK Corporation Annual Review 29

TDK 3 31 1 29 28 29............................................ (63,16) 71,461 $ (644,49)............................................... 89,567 71,297 913,948............................................ 2,387 1,762 24,357.......................................... 17,922 1,193 182,878................................................. (23,457) (1,885) (239,357)..................................... 6,388 2,81 65,184........................... 17,654 (1,256) 18,143................................... (15,34).............................................. (274)..................................... 55,746 (13,791) 568,837.................................... 13,458 (14,952) 137,327............................... 1,578 (9,9) 17,939..................................... (39,595) 16,723 (44,31)................................... (8,721) 8,745 (88,99)..................................... (17,272) (849) (176,245)............................... (2,15) 1,962 (21,48).............................. 1,239 (2,221) 12,643................................................... (1,44) 3,847 (14,694)................................. 59,189 119,413 63,969.............................................. (98,425) (84,312) (1,4,337)....................................... 1,77 18,58 19,255.............................................. (33,388) (8,54) (34,694)....................................... 4,455 1,177 45,459.............................................. (17,78) (17,834) (18,694)................................................. (393) (37,155) (4,1)................................................. 624 3,264 6,367.................................. (136,146) (18,182) (1,389,244).............................................. (153) (2,26) (1,561).............................................. 1,351 3, 13,786.......................................... (166) (15,855) (1,694)....................................... (6,755) (68,929).................................................... 421 388 4,296................................. (275,576) (157,747) (2,812,)...................................... 24,96 2,9,877......................................... (2,428) (9,242) (24,776)..................................... 39,531 3,574 43,378............................ 125 882 1,276.............................................. (15) (39,25) (153)................................................. (18,56) (15,683) (184,245).................................................... (26) (367) (2,653)........................... 223,83 (6,86) 2,283,74........................ (7,816) (24,644) (79,755).................................. (4) (123,64) (4,82).................................... 166,15 289,169 1,694,949.................................... 165,75 166,15 $ 1,69,867 1 98 TDK Corporation Annual Review 29 41

% 1, 1, 9 15 8, 8, 6 1 6, 6, 3 5 4, 4, 2, 2, -3-5 5 6 7 8 9 5 6 7 8 9-6 5 6 7 8 9-1 8 1, 6 4-4 8 6 4 2 4 2-8 5 6 7 8 9 5 6 7 8 9 5 6 7 8 9 3 31 13 31 29 28 27 26 25........................................ 727,4 866,285 862,25 795,18 657,853.................................... 61,944 714,172 69,673 621,522 473,828.................................... (54,35) 87,175 79,59 6,523 59,83 %............................... (7.5)% 1.1 9.2 7.6 9.1.................................... (63,16) 71,461 7,125 44,11 33,3.................................... 98,425 84,312 7,44 73,911 61,5.................................... 57,645 57,387 5,58 45,528 36,348 42 TDK Corporation Annual Review 29

% % 1,5 12, 1 15 9, 75 1 75 5 6, 5 3, 25-5 -75 5 6 7 8 9 5 6 7 8 9-1 5 6 7 8 9 1 1 6 15 8, 4 6, 2 1 4, -2 5 2, -4-6 5 6 7 8 9 5 6 7 8 9 5 6 7 8 9 29 28 27 26 25.................................. (63,16) 71,461 7,125 44,11 33,3.................................. 89,567 71,297 65,337 58,54 52,86..................................... 1,11,36 935,533 989,34 923,53 88,1 %............................ 5.3% 76.6 77.1 76.1 79.1 %....................... (6.2)% 7.4 7.3 5.1 4.2 %...................... (9.9)% 9.7 9.6 6.6 5.5 1................................... (489.71) 551.72 529.88 333.5 251.71................................ (489.71) 551.19 529.29 333.2 251.56 1....... 14. 12. 1. 8. 6.................................. 66,429 6,212 51,614 53,923 37,115 TDK Corporation Annual Review 29 43

29 3 31 TDK 13-827213 1 1935 12 7 32,641,976,312 48,, 129,59,659 26,31 1 6762 15-857433 1 ADR Citibank, N.A. 111 Wall Street, 2th Floor, Zone 7 New York, NY 15, U.S.A. KPMG AZSA & Co. % 16,524 12.81 15,859 12.3 8,496 6.59 7,319 5.67 6,25 4.85 2,662 2.6 2,594 2.1 2,14 1.66 2,132 1.65 1,981 1.54 65,955 51.14 1. 611,272 2. 47.3% 32.8% 8.5% 7.% 3.9%.5%.% E TDK 13 1 Tel: (3) 521-712 Fax: (3) 521-7114 TDK U.S.A. Corporation 91 Franklin Avenue, Garden City, NY 1153 U.S.A. Tel: +1(516)535-26 TDK Electronics Europe GmbH Wanheimer Strasse 57, D-4472 Duesseldorf, Germany Tel: +49(211)977 http://www.tdk.co.jp/ir/ TDK IR ADR Citibank, N.A. Shareholder Services P.O. Box 4377 Providence, Rhode Island 294-377 U.S.A. Tel: 1-877-248-4237 CITI-ADR (toll free) Tel: 1-816-843-4281 (out of U.S.) Fax: 1-21-324-3284 Internet: www.citigroup.com/adr E-mail: citibank@shareholders-online.com E-mail tdkhqir@jp.tdk.com 44 TDK Corporation Annual Review 29

TDK http://www.tdk.co.jp/ Cert no. SGS-COC-3294 Printed in Japan