TDK Corporation
1-13-1, Nihonbashi
Chuo-ku, Tokyo
103-8272 Japan
Contacts; Corporate Communications
Department
TDK Corporation (Tokyo) Michinori Katayama +81(3)5201-7102
TDK U.S.A. Corporation Francis J. Sweeney +1(516)535-2600
TDK Marketing Europe GmbH Ron Matier +44(1737)773773
(UK Branch)
FOR IMMEDIATE RELEASE
TOKYO - October 28, 2004 TDK Corporation today announced its Consolidated
business results prepared in conformity with accounting principles generally
accepted in the United States of America (the "U.S. GAAP") for the first half
of fiscal year ("FY") 2005 and the 2nd quarter ("Qtr.") and Non-Consolidated
business results for the first half of FY 2005.
I. Consolidated
I-1) Summary
Consolidated results (April 1, 2004 - September 30, 2004)
The first half of FY2005 The first half
of FY2004
(April 1, 2004 - Sep. 30, (April 1, 2003 Change
2004) - Sep. 30,
2003)
Item/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Net sales 318,770 100.0 2,871,802 316,279 100.0 2,491 0.8
Operating income 26,889 8.4 242,243 24,020 7.6 2,869 11.9
Income before income taxes 28,804 9.0 259,495 25,014 7.9 3,790 15.2
Net income 19,869 6.2 179,000 19,257 6.1 612 3.2
Per common share:
Net income/Basic Yen U.S.$1.35 Yen
150.11 145.27
Net income/Diluted Yen U.S.$1.35 Yen
150.00 145.27
(Sales breakdown)
The first half of FY2005 The first half Change
of FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003
- Sep. 30,
2003)
Product/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Electronic materials and 262,364 82.3 2,363,640 254,352 80.4 8,012 3.1
components
Electronic materials 91,036 28.6 820,144 82,302 26.0 8,734 10.6
Electronic devices 57,511 18.0 518,117 52,451 16.6 5,060 9.6
Recording devices 103,333 32.4 930,928 111,423 35.2 (8,090) -7.3
Semiconductors & others 10,484 3.3 94,451 8,176 2.6 2,308 28.2
Recording media & systems 56,406 17.7 508,162 61,927 19.6 (5,521) -8.9
Total sales 318,770 100.0 2,871,802 316,279 100.0 2,491 0.8
Overseas sales 231,138 72.5 2,082,324 234,743 74.2 (3,605) -1.5
Note: U.S.$1=Yen 111
2nd Qtr. Consolidated results
Consolidated results (July 1, 2004 - September 30, 2004)
The 2nd Qtr. of FY2005 The 2nd Qtr. of Change
FY2004
(July 1, 2004 - Sep. 30,
2004) (July 1, 2003 -
Sep. 30, 2003)
Item/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Net sales 160,879 100.0 1,449,360 163,063 100.0 (2,184) -1.3
Operating income 12,864 8.0 115,892 13,840 8.5 (976) -7.1
Income before income taxes 13,854 8.6 124,811 13,850 8.5 4 -
Net income 9,706 6.0 87,441 11,232 6.9 (1,526) -13.6
Per common share:
Net income/Basic Yen 73.36 U.S.$0.66 Yen 84.76
Net income/Diluted Yen 73.31 U.S.$0.66 Yen 84.76
(Sales breakdown)
The 2nd Qtr. of FY2005 The 2nd Qtr. of Change
FY2004
(July 1, 2004 - Sep. 30,
2004) (July 1, 2003 -
Sep. 30, 2003)
Product/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Electronic materials and 131,896 82.0 1,188,252 130,563 80.1 1,333 1.0
components
Electronic materials 46,273 28.8 416,874 41,882 25.7 4,391 10.5
Electronic devices 29,263 18.2 263,630 26,634 16.3 2,629 9.9
Recording devices 51,170 31.8 460,991 57,583 35.3 (6,413) -11.1
Semiconductors & others 5,190 3.2 46,757 4,464 2.8 726 16.3
Recording media & systems 28,983 18.0 261,108 32,500 19.9 (3,517) -10.8
Total sales 160,879 100.0 1,449,360 163,063 100.0 (2,184) -1.3
Overseas sales 116,025 72.1 1,045,270 121,960 74.8 (5,935) -4.9
Note: U.S.$1=Yen 111
I-2) Management Policies
(1) Fundamental Management Policy
TDK was established in 1935 as the world's first company to commercialize a
magnetic material called ferrite. In the ensuing years, TDK has developed and
commercialized electronic materials, electronic devices, recording devices and
recording media & systems. This drive has been based on the company's founding
spirit: "Contribute to culture and industry through creativity."
To preserve its identity as a dynamic company, TDK is dedicated to creating
value for all stakeholders, including shareholders, customers, suppliers,
employees and society, by drawing on innovative thinking and a willingness to
tackle new challenges. TDK firmly believes that it must remain an organization
that is a constant source of exciting ideas that are of true value to
stakeholders.
(2) Fundamental Policy for Distribution of Earnings
Returning earnings to shareholders is one of TDK's highest management
priorities. As such, TDK's fundamental policy is to devote its efforts to a
stable increase of dividends while taking into consideration a broad range of
factors, including the return on equity (ROE), dividends as a percentage of
equity (DOE) and the company's results of operation on a consolidated basis.
Retained earnings are used to invest in the development of new products and
technologies in key fields, to upgrade production facilities and in other ways
to make TDK more competitive and respond precisely to the rapid technological
advances in the electronics industry.
(3) Policy Regarding Reduction of TDK's Share Trading Unit
On August 1, 2000, TDK reduced the share trading unit of its common shares from
1,000 to 100 shares to broaden the shareholder base and increase the liquidity
of the company's shares. TDK now believes that its shares have sufficient
liquidity. TDK will consider a further reduction of the trading unit based on
its stock price and market needs as well as on a cost-benefit analysis.
(4) Medium- and Long-Term Management Strategy
In April 2004, TDK launched an initiative aimed at generating new growth with
the overriding aim of becoming an exciting company, an ongoing theme at TDK.
The electronics industry, TDK's main market, is witnessing escalating
competition due to progress in the digitalization and standardization of key
devices. To accurately respond to changing market needs as product life spans
shorten, TDK is dedicated to delivering new products that the market demands,
without delay, precisely when those products are needed. With this in mind, TDK
is aiming to increase the weighting of new products in its overall sales mix as
its growth strategy over the medium term.
TDK also plans to take steps to refine its sophisticated technological and
development capabilities in the core electronic materials and components
business. TDK is aiming for growth by delivering the value customers demand in
a timely manner through the development of products rooted in the company's
core materials, process and evaluation & simulation technologies, which
underpin its electronic materials and components business.
Reaffirming the importance of coexisting with society as a responsible
corporate citizen, TDK examines how it can contribute to society as a company,
and conducts its own social contribution activities based on two concepts:
"Creativity" and "Culture."
(5) Pressing Issues
The electronics industry, TDK's field of operations, is finding renewed vigor
on growth in the market for flat-panel TVs, DVD recorders and other digital
home appliances and the greater use of electronics in motor vehicles. But
digitalization is also fueling stiffer competition. In digital home appliances,
the electronics industry has been thrust into an era of full-blown competition
as rapid advances are made in the standardization of key devices while new
products that fail to clearly set themselves apart are quickly engulfed by
price competition and driven out of the market. Competing successfully in this
era increasingly hinges on one's ability to be different, which basically means
supplying superior products.
Under these circumstances, TDK will strengthen its core technologies
(materials, process and evaluation & simulation technologies) that will be key
to businesses down the road as the driving force for expanding sales of
competitive new products and responding to customer needs. In the electronics
market, TDK is targeting three key fields that it believes harbor prospects for
growth: IT home electronics; high-speed, large-capacity networks; and car
electronics. Developing new products that squarely match customer demands and
creating a system for supplying those products on a timely basis are important
themes for TDK in these markets where rapid change is an underlying premise.
(6) Strategy to Improve Corporate Governance
Companies must conduct their activities and manage their operations in a fair,
impartial and transparent manner, abiding by laws and regulations, and with the
recognition that their existence is supported by shareholders, customers,
suppliers, employees and society. TDK has put in place various systems of
internal control with this fundamental recognition in mind. It has also
implemented a number of other measures in the same vein, such as appointing an
outside director and statutory auditors, involving people outside the company
in setting directors' remuneration, and ensuring that corporate ethics are
strictly observed.
(6-1) Management structure and other corporate governance systems concerning
decision-making, strategy execution and supervision
One of TDK's 7 directors is an outside director, who also serves as the
chairperson of the Compensation Advisory Committee, which was set up to ensure
the transparency of directors' remuneration. Another committee, the Corporate
Ethics Committee, was established to ensure that TDK upholds corporate ethical
standards. At the same time, TDK is continuing to build a global corporate
ethics framework that also encompasses all domestic and overseas subsidiaries.
All subsidiaries have an ethics council. Independent of the Corporate Ethics
Committee and these ethics councils, TDK has a "helpline" that encourages
employees to report matters relating to corporate ethics and offer suggestions.
Moreover, having introduced the post of corporate officer, TDK has clearly
demarcated responsibilities: directors are responsible for decision-making and
oversight, while corporate officers have responsibility for executing
day-to-day operations. Corporate officers execute policies set by the Board of
Directors in their respective areas of responsibility.
TDK has corporate auditors within the meaning of the Commercial Code of Japan,
and 3 of its 5 corporate auditors come from outside the company. The role of
the corporate auditor is not restricted to the supervision of directors'
activities. As required, they also audit business activities. In addition, the
Management Review & Support Department is primarily responsible for auditing
business activities.
Another defining aspect of TDK's corporate governance system is that it
receives advice and directives from outside legal counsel regarding risks
associated with TDK's corporate activities.
Moreover, to give the company the best managerial structure for responding
flexibly to the various changes in its operating environment and to build
greater trust with shareholders, the company has set the terms of directors to
one year.
(6-2) Personal, financial and trading relationships between the company and the
outside director and outside corporate auditors, and other beneficial
relationships
There are no personal or financial relationships between TDK and the outside
director or the three outside corporate auditors.
(6-3) Measures taken to enhance corporate governance over the past year
To ensure that corporate ethical standards are being upheld, TDK has put in
place a global corporate ethics framework that encompasses the activities of
overseas subsidiaries as well as domestic ones. Activities are ongoing to
oversee and refine this system. And, to comply with the U.S. Sarbanes-Oxley Act
of 2002, a strict law relating to corporate governance that was prompted by a
series of scandals involving major corporations, TDK formed a project team that
includes outside experts to undertake a fundamental review and reinforce
corporate systems. Furthermore, in the same vein, TDK restricts the work that
is outsourced to independent auditors so as to preserve their impartiality and
independence.
I-3) Business Results and Financial Position
1. Summary
Consolidated results for the first half of fiscal 2005, the six-month period
from April 1, 2004 through September 30, 2004, are as follows:
TDK posted net sales of �318,770 million (U.S.$2,871,802 thousand), a rise of
0.8% over the �316,279 million recorded in the first half of the previous
fiscal year. Operating income was �26,889 million (U.S.$242,243 thousand), up
11.9% from �24,020 million. Income before income taxes was �28,804 million
(U.S.$259,495 thousand), up 15.2% from �25,014 million. Net income was �19,869
million (U.S.$179,000 thousand), up 3.2% from �19,257 million, meaning basic
net income per common share was �150.11 (U.S.$1.35), compared with �145.27 in
the first half of the previous fiscal year.
Average first-half yen exchange rates for the U.S. dollar and euro were �109.80
and �133.28, respectively, as the yen appreciated 7.0% versus the U.S. dollar
and 0.2% against the euro. This had the effect of lowering net sales by
approximately �15.1 billion and operating income by approximately �5.9 billion.
(Sales by Segment)
TDK's businesses are broadly classified into two business segments: the
electronic materials and components segment and the recording media & systems
segment. The following is an explanation of sales by segment.
(1) Electronic materials and components segment
This segment is made up of four product sectors: (1-1) electronic materials,
(1-2) electronic devices, (1-3) recording devices, and (1-4) semiconductors &
others.
Segment net sales increased 3.1% to �262,364 million (U.S.$2,363,640 thousand),
from �254,352 million. Segment operating income climbed 15.8% to �29,908
million (U.S.$269,441 thousand), from �25,832 million.
The electronics market in the first quarter of fiscal 2005 saw strong demand
for components for mobile phones and digital home appliances such as
flat-screen TVs, digital still cameras and DVD recorders continue from the
fourth quarter of the previous fiscal year. However, the second quarter was
characterized by slowing demand for mobile phone components and by inventory
reductions in digital home appliances, particularly AV-related products, which
had been produced in anticipation of demand stimulated by the Summer Olympic
Games and other events. Demand from the PC and automotive fields was stronger
throughout the interim period than in the previous fiscal year. Under these
market conditions, sales of electronic materials and electronic devices
increased, lifting segment sales as a whole. Sector results were as follows.
(1-1) Electronic materials
This sector is broken down into two product categories: capacitors and ferrite
cores and magnets.
Sales in the electronic materials sector rose 10.6% to �91,036 million
(U.S.$820,144 thousand), from �82,302 million.
(Capacitors) Sales rose year on year. In IT home electronics appliance
applications, sales volumes increased on the back of growth in digital home
appliances. Furthermore, sales rose on greater demand for the use of capacitors
in mobile phones, a rising proportion of which have color displays and cameras,
and in automobiles, which are increasingly making use of electronics. These
factors absorbed the effect of downward pressure on sales prices and of the
higher yen.
(Ferrite cores and magnets) Sales of ferrite cores and magnets increased year
on year. In ferrite cores, sales volume growth was recorded for general-purpose
power supply cores for digital home appliances and cores for communications
equipment. Magnet sales volume also rose on strong orders for automotive and IT
home electronics appliance applications.
(1-2) Electronic devices
This sector has three product categories: inductive devices, high-frequency
components and other products.
Sales in the electronic devices sector rose 9.6% to �57,511 million
(U.S.$518,117 thousand), from �52,451 million.
(Inductive devices) Sales of inductive devices increased year on year. In IT
home electronics appliance applications, sales grew for use in digital home
appliances, thanks in large part to demand spurred by the Summer Olympic Games.
Furthermore, an increase in the number of components used in mobile phones,
which are being equipped with cameras and other additional features, spurred
growth in sales of coils, multilayer products and other products.
(High-frequency components) Sales of high-frequency components edged down year
on year. While sales volume of high-frequency components was higher year on
year, sales were brought down slightly by the continuation of strong
discounting pressure from clients and the effect of production cutbacks at
mobile phone manufacturers in China due to inventory problems.
(Other products) Sales of other products rose year on year. Power systems
recorded higher sales on strong sales of DC-DC converters and DC-AC inverters
for the industrial equipment market. Sensors and actuators also recorded higher
sales, mainly for use in PCs and peripherals and communications equipment.
(1-3) Recording devices
This sector has two product categories: HDD heads and other heads.
Sector sales declined 7.3% to �103,333 million (U.S.$930,928 thousand), from �
111,423 million.
(HDD heads) Sales decreased on lower orders for TDK's HDD heads, reflecting two
factors. One was a sharp drop in orders from a major customer that started
producing heads in-house last year. The other cause was that some other
customers reduced HDD production to resolve the problem of excess inventories.
(Other heads) Sales of other heads declined year on year, with sales of optical
pickups sluggish.
(1-4) Semiconductors & others
This sector has two product categories: semiconductors and others.
Sector sales climbed 28.2% to �10,484 million (U.S.$94,451 thousand), from �
8,176 million.
(Semiconductors) Sales of semiconductors declined due to lower sales to the
communications equipment market.
(Others) Other sales increased year on year. While sales of anechoic chambers
for electromagnetic noise control were down slightly, TDK recorded higher
external sales of manufacturing equipment and other products.
(2) Recording media & systems segment
This segment is made up of four product categories: audiotapes, videotapes,
optical media and other products.
Segment sales declined 8.9% to �56,406 million (U.S.$508,162 thousand), from �
61,927 million. The segment recorded an operating loss of �3,019 million
(U.S.$27,198 thousand), an increase of 66.6% from last year's operating loss of
�1,812 million.
(Audiotapes and videotapes) Sales of audiotapes and videotapes declined year on
year. While TDK maintained a high market share, demand continues to decline for
these products as a whole.
(Optical media) Sales of optical media increased, as sharply higher sales
volumes of DVDs due to expanding demand absorbed the effect of downward
pressure on sales prices.
(Other products) Sales of other products decreased year on year, the result
mainly of the sale in the previous fiscal year of a U.S. software development
subsidiary and sluggish sales of recording equipment. On the other hand, the
steady increase continued in sales of LTO-standard* (Linear Tape-Open)
tape-based data storage media for computers.
*Linear Tape-Open, LTO, LTO logo, Ultrium and Ultrium logo are trademarks of
HP, IBM and Certance LLC in the U.S., other countries or both.
(Sales by Region)
Detailed geographic segment information can be found in the segment information
on page 17 of the consolidated results.
By region, in Japan, the electronic materials and recording devices sectors
recorded higher sales. However, sales were down slightly in the electronic
devices sector and the recording media & systems segment.
In the Americas, sales in the electronic materials sector and the recording
media & systems segment declined. The higher yen versus the U.S. dollar also
impacted sales in the Americas.
In Europe, lower sales were recorded in the recording media & systems segment.
In Asia (excluding Japan) and other areas, sales declined in the recording
devices sector, but the electronic materials and electronic devices sectors
recorded higher sales.
The overall result was a 1.5% decrease in overseas sales year on year, from �
234,743 million to �231,138 million (U.S.$2,082,324 thousand). Overseas sales
accounted for 72.5% of consolidated net sales, a 1.7 percentage point decrease
from 74.2%.
On a parent-company basis, net sales increased 10.0% to �167,709 million
(US$1,510,891 thousand), from �152,474 million. Operating income was �5,696
million (U.S.$51,315 thousand), up 436.3% from �1,062 million. Current income
was �22,169 million (U.S.$199,720 thousand), up 360.0% from �4,819 million. Net
income was �15,883 million (U.S.$143,090 thousand), up 1,309.3% from �1,127
million, meaning basic net income per common share was �119.99 (U.S.$1.08),
compared with �8.51 in the first half of the previous fiscal year.
At the meeting of TDK's Board of Directors on October 28, an interim dividend
of �30 per share of common stock was approved.
2. Financial Position
(2-1) The following table summarizes TDK's balance sheet at September 30, 2004,
compared with March 31, 2004.
Total assets �807,913 4.9% increase
million
Total stockholders' equity �610,176 5.9% increase
million
Equity ratio 75.5% 0.7 point
increase
At September 30, 2004, cash and cash equivalents were �8,814 million higher
than at March 31, 2004, net trade receivables were �5,340 million higher,
inventories were �10,128 million higher and other current assets were �8,522
million higher. Net property, plant and equipment rose �7,808 million. As a
result of these and other changes, total assets increased �37,594 million.
Total liabilities increased �3,659 million. While retirement and severance
benefits declined �9,663 million, trade payables increased �647 million,
accrued expenses rose �5,033 million and income taxes payables rose �6,695
million.
Total stockholders' equity increased �33,957 million, reflecting a �15,283
million rise in retained earnings and a �19,548 million decrease in accumulated
other comprehensive loss.
(2-2) Cash Flows
(�
millions)
Fiscal Fiscal Change
2005 2004
Interim Interim
Net cash provided by operating activities 38,415 52,031 (13,616)
Net cash used in investing activities (29,107) (18,535) (10,572)
Net cash used in financing activities (5,701) (5,292) (409)
Effect of exchange rate changes on cash and cash 5,207 (5,349) 10,556
equivalents
Net increase in cash and cash equivalents 8,814 22,855 (14,041)
Cash and cash equivalents at beginning of period 227,155 170,551 56,604
Cash and cash equivalents at end of period 235,969 193,406 42,563
Operating activities provided net cash of �38,415 million (U.S.$346,081
thousand), a year-on-year decrease of �13,616 million. Net income rose �612
million to �19,869 million (U.S.$179,000 thousand) and depreciation and
amortization increased �1,726 million to �25,368 million (U.S.$228,540
thousand). In changes in assets and liabilities, trade receivables decreased �
5,877 million, trade payables decreased �8,681 million and income taxes
payables, net increased �5,121 million.
Investing activities used net cash of �29,107 million (U.S.$262,225 thousand),
�10,572 million more than a year earlier. This mainly reflected a �9,030
million increase to �29,856 million (U.S.$268,973 thousand) in capital
expenditures.
Financing activities used net cash of �5,701 million (U.S.$51,360 thousand), �
409 million more than a year earlier, mainly due to a �656 million increase in
dividends paid.
3. Fiscal 2005 Projections
TDK's projections for fiscal 2005, the year ending March 31, 2005, are as
follows.
[Consolidated Projections for Fiscal 2005]
Year % change Year
ending ended
from
March FY2004 March
2005 2004
(� (�
million) million)
Net sales 680,000 3.2 658,862
Operating income 60,000 10.5 54,322
Income before
income taxes 62,000 11.5 55,603
Net income 46,500 10.4 42,101
[Non-Consolidated Projections for Fiscal 2005]
Year % change Year
ending ended
from
March FY2004 March
2005 2004
(� (�
million) million)
Net sales 344,700 9.1 316,050
Operating income 13,400 663.1 1,756
Current income 33,700 227.9 10,277
Net income 22,900 413.7 4,458
Note:
The projections are based principally on the following assumptions:
* An average yen-U.S. dollar exchange rate of �105 for the second half of the
year.
* The projections take into consideration seasonal factors, namely higher
demand at the end of the calendar year, in the third quarter for passive
components (electronic materials and electronic devices). But with market
conditions expected to deteriorate thereafter, demand may wane in the fourth
quarter of fiscal 2005.
* In recording devices, demand for HDD heads is expected to recover in the
second half of the fiscal year on growing demand for HDDs.
* In the recording media & systems segment, seasonal factors are expected to
lift sales of existing audiotapes and videotapes and optical media products
above first-half levels.
* TDK is projecting a year-on-year increase in sales in the electronic
materials and components segment but a decrease in the recording media &
systems segment. On a consolidated basis, TDK is projecting a 3.2% year-on-year
increase in net sales as a whole.
Cautionary Statement About Projections
This earnings release contains forward-looking statements, including
projections, plans, policies, management strategies, targets, schedules,
understandings and evaluations, about TDK and its group companies that are not
historical facts. These forward-looking statements are based on current
forecasts, estimates, assumptions, plans, beliefs and evaluations in light of
information available to management on the date of this earnings release.
In preparing forecasts and estimates, TDK and its group companies have used, as
their bases, certain assumptions as necessary, in addition to confirmed
historical facts. However, due to their nature, there is no guarantee that
these statements and assumptions will prove to be accurate in the future. TDK
therefore wishes to caution readers that these statements, facts and certain
assumptions contained in this earnings release are subject to a number of risks
and uncertainties and may prove to be inaccurate.
The electronics markets in which TDK and its group companies operate are highly
susceptible to rapid changes. Furthermore, TDK and its group companies operate
not only in Japan, but in many other countries. As such, factors that can have
significant effects on its results include, but are not limited to, shifts in
technology, demand, prices, competition, economic environments and foreign
exchange rates.
The premises and assumptions used in computing the projections in this earnings
release include, but are not limited to, those explained above.
Consolidated
I-4) Statements of income
The first half of FY2005 The first half Change
of FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003
- Sep. 30,
2003)
Item/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Net sales 318,770 100.0 2,871,802 316,279 100.0 2,491 0.8
Cost of sales 228,776 71.8 2,061,045 227,919 72.1 857 0.4
Gross profit 89,994 28.2 810,757 88,360 27.9 1,634 1.8
Selling, general and 63,105 19.8 568,514 64,340 20.3 (1,235) -1.9
administrative expenses
Operating income 26,889 8.4 242,243 24,020 7.6 2,869 11.9
Other income (deductions):
Interest and dividend 643 5,793 655 (12)
income
Interest expense (157) (1,414) (212) 55
Foreign exchange gain 592 5,333 (2,037) 2,629
(loss)
Other-net 837 7,540 2,588 (1,751)
Total other income 1,915 0.6 17,252 994 0.3 921 92.7
(deductions)
Income before income taxes 28,804 9.0 259,495 25,014 7.9 3,790 15.2
Income taxes 8,852 2.8 79,747 5,511 1.7 3,341 60.6
Income before minority 19,952 6.2 179,748 19,503 6.2 449 2.3
interests
Minority interests 83 - 748 246 0.1 (163) -66.3
Net income 19,869 6.2 179,000 19,257 6.1 612 3.2
Note: U.S.$1=Yen 111
Consolidated
I-5) Balance sheets
ASSETS
As of Sep. 30, 2004 As of Mar. 31, Change As of Sep. 30,
2004 2003
Item/Term (Yen % (U.S.$ (Yen % (Yen (Yen %
millions) thousands) millions) millions) millions)
Current assets 509,541 63.1 4,590,459 475,773 61.8 33,768 446,324 59.5
Cash and cash 235,969 2,125,847 227,155 8,814 193,406
equivalents
Marketable 1,366 12,306 402 964 -
securities
Net trade 143,671 1,294,333 138,331 5,340 141,343
receivables
Inventories 87,429 787,649 77,301 10,128 77,663
Other current 41,106 ____ 370,324 32,584 ____ 8,522 33,912 ____
assets
Noncurrent assets 298,372 36.9 2,688,036 294,546 38.2 3,826 304,391 40.5
Investments in 17,896 161,225 18,381 (485) 16,791
securities
Net property, 216,753 1,952,730 208,945 7,808 216,670
plant and
equipment
Other assets 63,723 ____ 574,081 67,220 ____ (3,497) 70,930 ____
TOTAL 807,913 100.0 7,278,495 770,319 100.0 37,594 750,715 100.0
LIABILITIES AND STOCKHOLDERS' EQUITY
As of Sep. 30, 2004 As of Mar. 31, Change As of Sep. 30,
2004 2003
Item/Term (Yen % (U.S.$ (Yen % (Yen (Yen %
millions) thousands) millions) millions) millions)
Current liabilities 127,954 15.9 1,152,739 115,218 15.0 12,736 109,836 14.7
Short-term debt 160 1,441 416 (256) 1,620
Trade payables 60,564 545,622 59,917 647 60,454
Accrued expenses 50,567 455,558 45,534 5,033 37,766
Income taxes payables 11,384 102,559 4,689 6,695 2,163
Other current 5,279 ___ 47,559 4,662 ___ 617 7,833 ____
liabilities
Noncurrent 66,529 8.2 599,360 75,606 9.8 (9,077) 75,989 10.1
liabilities
Long-term debt, 58 522 27 31 89
excluding current
installments
Retirement and 63,858 575,297 73,521 (9,663) 75,811
severance benefits
Deferred income taxes 745 6,712 215 530 13
Other noncurrent 1,868 16,829 1,843 25 76
liabilities
Total liabilities 194,483 24.1 1,752,099 190,824 24.8 3,659 185,825 24.8
Minority interests 3,254 0.4 29,315 3,276 0.4 (22) 3,228 0.4
Common stock 32,641 294,063 32,641 - 32,641
Additional paid-in 63,051 568,027 63,051 - 63,051
capital
Legal reserve 17,055 153,649 16,497 558 16,494
Retained earnings 576,039 5,189,540 560,756 15,283 541,295
Accumulated other (70,839) (638,189) (90,387) 19,548 (85,204)
comprehensive income
(loss)
Treasury stock (7,771) (70,009) (6,339) (1,432) (6,615)
Total stockholders' 610,176 75.5 5,497,081 576,219 74.8 33,957 561,662 74.8
equity
TOTAL 807,913 100.0 7,278,495 770,319 100.0 37,594 750,715 100.0
Note: U.S.$1=Yen 111
Consolidated
I-6) Statements of stockholders' equity
The first half of FY2004 The first
FY2005 half
(April 1,
(April 1, 2004 - 2003 - of FY2004
Sep. 30, 2004)
Mar. 31, (April 1,
2004) 2003 -
Sep. 30,
2003)
Item/Term (Yen (U.S.$ (Yen (Yen
millions) thousands) millions) millions)
Common stock:
Balance at beginning of 32,641 294,063 32,641 32,641
period
Balance at end of period 32,641 294,063 32,641 32,641
Additional paid-in
capital:
Balance at beginning of 63,051 568,027 63,051 63,051
period
Balance at end of period 63,051 568,027 63,051 63,051
Legal reserve:
Balance at beginning of 16,497 148,622 15,953 15,953
period
Transferred from retained 558 5,027 544 541
earnings
Balance at end of period 17,055 153,649 16,497 16,494
Retained earnings:
Balance at beginning of 560,756 5,051,856 525,919 525,919
period
Net income 19,869 179,000 42,101 19,257
Cash dividends (3,972) (35,784) (6,625) (3,316)
Losses on sales of (56) (505) (95) (24)
treasury stock
Transferred to legal (558) (5,027) (544) (541)
reserve
Balance at end of period 576,039 5,189,540 560,756 541,295
Accumulated other
comprehensive income
(loss):
Balance at beginning of (90,387) (814,297) (78,824) (78,824)
period
Other comprehensive 19,548 176,108 (11,563) (6,380)
income (loss) for the
period, net of tax
Balance at end of period (70,839) (638,189) (90,387) (85,204)
Treasury stock:
Balance at beginning of (6,339) (57,108) (4,855) (4,855)
period
Acquisition of treasury (1,658) (14,937) (1,865) (1,854)
stock
Exercise of stock option 226 2,036 381 94
Balance at end of period (7,771) (70,009) (6,339) (6,615)
Total stockholders' 610,176 5,497,081 576,219 561,662
equity
Disclosure of
comprehensive income
(loss):
Net income for the period 19,869 179,000 42,101 19,257
Other comprehensive 19,548 176,108 (11,563) (6,380)
income (loss) for the
period, net of tax
Total comprehensive 39,417 355,108 30,538 12,877
income for the period
Note: U.S.$1=Yen 111
Consolidated
I-7) Statements of cash flows
The first half of The first
FY2005 half
(April 1, 2004 - of FY2004
Sep. 30, 2004)
(April 1,
2003-
Sep. 30,
2003)
Item/Term (Yen (U.S.$ (Yen
millions) thousands) millions)
Cash flows from operating activities:
Net income 19,869 179,000 19,257
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 25,368 228,540 23,642
Loss on disposal of property and equipment 233 2,099 1,231
Deferred income taxes (3,311) (29,829) 2,494
Loss (gain) on securities, net (95) (856) 1,068
Changes in assets and liabilities:
Increase in trade receivables (983) (8,856) (6,860)
Increase in inventories (7,679) (69,180) (6,323)
Increase in other current assets (6,764) (60,937) (277)
Increase (decrease) in trade payables (2,270) (20,450) 6,411
Increase in accrued expenses 3,338 30,072 2,881
Increase (decrease) in income taxes payables, net 7,193 64,802 2,072
Increase in retirement and severance benefits 3,194 28,775 4,377
Other-net 322 2,901 2,058
Net cash provided by operating activities 38,415 346,081 52,031
Cash flows from investing activities:
Capital expenditures (29,856) (268,973) (20,826)
Proceeds from sales and maturities of investments 210 1,892 1,830
in securities
Payment for purchase of investments in securities (200) (1,802) -
Payment for purchase of other investments (128) (1,153) (96)
Proceeds from sales of property, plant and 867 7,811 844
equipment
Acquisition of minority interests - - (287)
Net cash used in investing activities (29,107) (262,225) (18,535)
Cash flows from financing activities:
Proceeds from long-term debt 137 1,234 35
Repayment of long-term debt (53) (477) (212)
Increase (decrease) in short-term debt, net (325) (2,928) (15)
Sale (purchase) of treasury stock, net (1,488) (13,405) (1,784)
Dividends paid (3,972) (35,784) (3,316)
Net cash used in financing activities (5,701) (51,360) (5,292)
Effect of exchange rate changes on cash and cash 5,207 46,910 (5,349)
equivalents
Net increase in cash and cash equivalents 8,814 79,406 22,855
Cash and cash equivalents at beginning of period 227,155 2,046,441 170,551
Cash and cash equivalents at end of period 235,969 2,125,847 193,406
Note: U.S.$1=Yen 111
Consolidated
I-8) Summary of Significant Accounting Policies
1. The consolidated financial statements are prepared in conformity with the
U.S. GAAP.
(1) Marketable Securities
Statement of Financial Accounting Standards ("SFAS") No.115, "Accounting for
Certain Investments in Debt and Equity Securities" is adopted.
(2) Inventories
Inventories are stated at the lower of cost or market. Cost is determined
principally by the average method.
(3) Depreciation
Depreciation of property, plant and equipment is principally computed by the
declining-balance method for assets located in Japan and certain foreign
subsidiaries, and by the straight-line method for assets of other foreign
subsidiaries based on estimated useful lives.
(4) Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred
tax assets and liabilities are recognized for the estimated future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
base and operating loss and tax credit carryforwards.
(5) Derivatives Financial Instruments
SFAS No.133, "Accounting for Derivative Instruments and Hedging Activities" and
SFAS No.138, "Accounting for Certain Derivative Instruments and Certain Hedging
Activities, an amendment of FASB Statement No.133" are adopted.
(6) Goodwill and Other Intangible Assets
SFAS No.141, "Business Combinations" and SFAS No.142, "Goodwill and Other
Intangible Assets" are adopted.
2. During this consolidated accounting period, TDK had 71 subsidiaries (19 in
Japan and 52 overseas). TDK also had 8 affiliates (5 in Japan and 3 overseas)
whose financial statements are accounted for by the equity method.
3. Comprehensive income comprises net income and other comprehensive income.
Other comprehensive income includes changes in foreign currency translation
adjustments, minimum pension liability adjustments and net unrealized gains
(losses) on securities. The net income, other comprehensive income (loss), net
of tax and total comprehensive income for the six months ended September 30,
2004 and 2003 were as follows;
The first half of The first half
FY2005 of FY2004
(April 1, 2004 - (April 1, 2003
Sep. 30, 2004) - Sep. 30,
2003)
Item/Term (Yen (U.S.$ (Yen millions)
millions) thousands)
Net income 19,869 179,000 19,257
Other comprehensive income (loss), net of
tax:
Foreign currency translation adjustments 11,799 106,297 (14,709)
Minimum pension liability adjustments 8,184 73,730 8,296
Net unrealized gains (losses) on securities (435) (3,919) 33
Total comprehensive income 39,417 355,108 12,877
Note: U.S.$1=Yen 111
Consolidated
I-9) Segment Information
The following industry and geographic segment information are required by the
Japanese Securities Exchange Law.
1. Industry segment information
The first half of FY2005 The first half of Change
FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003 -
Sep. 30, 2003)
Product/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Electronic
materials and
components
Net sales 262,364 100.0 2,363,640 254,352 100.0 8,012 3.1
Unaffiliated 262,364 2,363,640 254,352 8,012 3.1
customers
Intersegment - - - - -
Operating 232,456 88.6 2,094,199 228,520 89.8 3,936 1.7
expenses
Operating 29,908 11.4 269,441 25,832 10.2 4,076 15.8
income
Recording media
& systems
Net sales 56,406 100.0 508,162 61,927 100.0 (5,521) -8.9
Unaffiliated 56,406 508,162 61,927 (5,521) -8.9
customers
Intersegment - - - - -
Operating 59,425 105.4 535,360 63,739 102.9 (4,314) -6.8
expenses
Operating (3,019) -5.4 (27,198) (1,812) -2.9 (1,207) -66.6
income (loss)
TOTAL
Net sales 318,770 100.0 2,871,802 316,279 100.0 2,491 0.8
Unaffiliated 318,770 2,871,802 316,279 2,491 0.8
customers
Intersegment - - - - -
Operating 291,881 91.6 2,629,559 292,259 92.4 (378) -0.1
expenses
Operating 26,889 8.4 242,243 24,020 7.6 2,869 11.9
income
Note: U.S.$1=Yen 111
2. Geographic segment information
The first half of FY2005 The first half Change
of FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003 -
Sep. 30, 2003)
Region/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Japan Net sales 173,096 100.0 1,559,424 158,716 100.0 14,380 9.1
Operating 10,963 6.3 98,766 3,508 2.2 7,455 212.5
income
Americas Net sales 45,656 100.0 411,315 49,713 100.0 (4,057) -8.2
Operating 1,450 3.2 13,063 (605) -1.2 2,055 -
income
(loss)
Europe Net sales 35,908 100.0 323,496 36,568 100.0 (660) -1.8
Operating (1,383) -3.9 (12,460) (59) -0.2 (1,324) -
income
(loss)
Asia and Net sales 188,065 100.0 1,694,279 185,691 100.0 2,374 1.3
others
Operating 17,334 9.2 156,162 21,560 11.6 (4,226) -19.6
income
Intersegment Net sales 123,955 1,116,712 114,409 9,546
eliminations
Operating 1,475 13,288 384 1,091
income
Total Net sales 318,770 100.0 2,871,802 316,279 100.0 2,491 0.8
Operating 26,889 8.4 242,243 24,020 7.6 2,869 11.9
income
Notes:
1. The sales are classified by geographic areas of the seller and include
transfers between geographic areas.
2. U.S.$1=Yen 111
3. Sales by region
The first half of FY2005 The first half Change
of FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003
- Sep. 30,
2003)
Region/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Americas 40,288 12.6 362,955 43,328 13.7 (3,040) -7.0
Europe 36,204 11.4 326,162 36,987 11.7 (783) -2.1
Asia and others 154,646 48.5 1,393,207 154,428 48.8 218 0.1
Overseas sales total 231,138 72.5 2,082,324 234,743 74.2 (3,605) -1.5
Japan 87,632 27.5 789,478 81,536 25.8 6,096 7.5
Net sales 318,770 100.0 2,871,802 316,279 100.0 2,491 0.8
Notes:
1. Sales by region are classified by geographic areas of the buyer.
2. U.S.$1=Yen 111
Consolidated
I-10) Fair Value of Securities
Cost Gross Gross Fair
Unrealized Unrealized Value
Holding Holding
Gains Losses
(Yen millions)
As of Sep. 30, 2004
Equity securities 3,384 491 137 3,738
Debt securities 1,103 - - 1,103
Total 4,487 491 137 4,841
As of March 31, 2004
Equity securities 2,782 1,054 - 3,836
Debt securities 1,101 - - 1,101
Total 3,883 1,054 - 4,937
As of Sep. 30, 2003
Equity securities 1,262 180 13 1,429
Debt securities 1,099 - 2 1,097
Total 2,361 180 15 2,526
Cost Gross Gross Fair
Unrealized Unrealized Value
Holding Holding
Gains Losses
U.S.$1=Yen 111
(U.S.$ thousands)
As of Sep. 30, 2004
Equity securities 30,487 4,423 1,234 33,676
Debt securities 9,937 - - 9,937
Total 40,424 4,423 1,234 43,613
I-11) Fair Value of Derivatives
Contract Carrying Estimated
Fair
(Yen millions) Amount Amount Value
As of Sep. 30, 2004
Forward foreign exchange contracts 962 (7) (7)
Currency option contracts 20,266 (133) (133)
Currency swap agreements for loans to its 10,533 (271) (271)
subsidiaries
As of March 31, 2004
Forward foreign exchange contracts 18,638 396 396
Currency option contracts 16,340 91 91
Currency swap agreements for loans to its 12,605 252 252
subsidiaries
As of Sep. 30, 2003
Forward foreign exchange contracts 3,124 (21) (21)
Currency swap agreements for loans to its 10,418 (9) (9)
subsidiaries
U.S.$1=Yen 111 Contract Carrying Estimated
Fair
(U.S.$ thousands) Amount Amount Value
As of Sep. 30, 2004
Forward foreign exchange contracts 8,667 (63) (63)
Currency option contracts 182,577 (1,198) (1,198)
Currency swap agreements for loans to its 94,892 (2,441) (2,441)
subsidiaries
Consolidated
I-12) Supplementary Information (Consolidated)
Exchange rates used for conversion
April 1, 2004 - Sep. April 1, 2003 - Sep.
30, 2004 30, 2003
Item/Term US$=Yen Euro=Yen US$=Yen Euro=Yen
Sales 109.80 133.28 118.08 133.51
The end of the period 111.05 137.04 111.25 129.19
Consolidated
April 1, 2004 - April 1, 2003 - April 1, 2003 -
Sep. 30, 2004 Sep. 30, 2003 March 31, 2004
Item/Term Amount Ratio Amount Ratio Change Amount Ratio
to to to
(Yen (Yen (%) (Yen
millions) sales millions) sales millions) sales
(%) (%) (%)
Capital expenditures 29,856 - 20,826 - 43.4 44,866 -
Depreciation and 25,368 8.0 23,642 7.5 7.3 51,233 7.8
amortization
Research and 18,192 5.7 17,179 5.4 5.9 34,495 5.2
development
Result of financial 486 443 9.7 866
income
Number of employees 35,844 34,535 36,804
(as at the end of the
period)
Ratio of overseas 59.1% 60.4% 58.9%
production
OVERSEAS SALES BY DIVISION
April 1, 2004 - April 1, 2003 - April 1, 2003 -
Sep. 30, 2004 Sep. 30, 2003 March 31, 2004
Product/Term Amount Ratio Amount Ratio Change Amount Ratio
to to (%) to
(Yen (Yen (Yen
millions) sales millions) sales millions) sales
(%) (%) (%)
Electronic materials 189,691 59.5 188,074 59.5 0.9 386,736 58.7
and components
Electronic materials 66,184 20.8 60,211 19.0 9.9 121,446 18.5
Electronic devices 34,867 10.9 29,583 9.4 17.9 61,373 9.3
Recording devices 83,449 26.2 94,222 29.8 -11.4 195,137 29.6
Semiconductors & 5,191 1.6 4,058 1.3 27.9 8,780 1.3
others
Recording media & 41,447 13.0 46,669 14.7 -11.2 103,470 15.7
systems
Overseas sales 231,138 72.5 234,743 74.2 -1.5 490,206 74.4
Non-Consolidated
II. Non-Consolidated
II-1) Summary
Non-Consolidated results (April 1, 2004 - September 30, 2004)
The first half of FY2005 The first half Change
of FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003
- Sep. 30,
2003)
Item/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Net sales 167,709 100.0 1,510,891 152,474 100.0 15,235 10.0
Operating income 5,696 3.4 51,315 1,062 0.7 4,634 436.3
Current income 22,169 13.2 199,720 4,819 3.2 17,350 360.0
Net income 15,883 9.5 143,090 1,127 0.7 14,756 -
Per common share:
Net income/Basic Yen U.S.$1.08 Yen 8.51
119.99
Net income/Diluted Yen U.S.$1.08 Yen 8.51
119.91
Dividends per share Yen 30.00 U.S.$0.27 Yen 25.00
Notes:
1. Any portion less than Yen one million is disregarded, the same being
applicable hereinafter. U.S.$1=Yen 111 (U.S. dollar translation is added herein
solely for convenience of readers outside Japan.)
2. The figures for net income per common share are calculated based upon the
weighted average number of shares of common stock (the total outstanding
number).
(Sales breakdown)
The first half of FY2005 The first half Change
of FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003
- Sep. 30,
2003)
Product/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Electronic materials and 144,433 86.1 1,301,198 131,033 85.9 13,400 10.2
components
Electronic materials 73,734 44.0 664,270 64,157 42.1 9,577 14.9
Electronic devices 43,410 25.9 391,081 39,041 25.6 4,369 11.2
Recording devices 16,843 10.0 151,738 20,562 13.5 (3,719) -18.1
Semiconductors & others 10,445 6.2 94,099 7,272 4.7 3,173 43.6
Recording media & systems 23,276 13.9 209,693 21,440 14.1 1,836 8.6
Total sales 167,709 100.0 1,510,891 152,474 100.0 15,235 10.0
Overseas sales 100,720 60.1 907,387 87,909 57.7 12,811 14.6
Note: U.S.$1=Yen 111
Non-Consolidated
II-2) Statements of income (Non-Consolidated)
The first half of FY2005 The first half Change
of FY2004
(April 1, 2004 - Sep. 30,
2004) (April 1, 2003
- Sep. 30,
2003)
Item/Term (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Net sales 167,709 100.0 1,510,891 152,474 100.0 15,235 10.0
Cost of sales 130,812 78.0 1,178,486 123,309 80.9 7,503 6.1
Gross profit 36,897 22.0 332,405 29,165 19.1 7,732 26.5
Selling, general and 31,200 18.6 281,081 28,103 18.4 3,097 11.0
administrative expenses
Operating income 5,696 3.4 51,315 1,062 0.7 4,634 436.3
Other income
(deductions):
Interest and dividend 11,761 105,954 3,266 8,495
income
Technology commission 3,773 33,990 2,269 1,504
Interest expense (19) (171) (12) (7)
Foreign exchange gain 515 4,639 (1,740) 2,255
(loss)
Other-net 440 3,963 (25) 465
Total other income 16,472 9.8 148,396 3,757 2.5 12,715 338.4
(deductions)
Current income 22,169 13.2 199,720 4,819 3.2 17,350 360.0
Extraordinary profit 107 0.1 963 446 0.3 (339) -76.0
Extraordinary loss (509) -0.3 (4,585) (4,724) -3.1 4,215 -89.2
Income before
income taxes 21,767 13.0 196,099 541 0.4 21,226 -
Income taxes 5,884 3.5 53,009 (586) -0.4 6,470 -
Net income 15,883 9.5 143,090 1,127 0.7 14,756 -
Note: U.S.$1=Yen 111
Non-Consolidated
II-3) Balance sheets (Non-Consolidated)
ASSETS
As of Sep. 30, 2004 As of Mar. 31, Change As of Sep. 30,
2004 2003
Item/Term (Yen % (U.S.$ (Yen % (Yen (Yen %
millions) thousands) millions) millions) millions)
Current assets 275,417 49.8 2,481,234 261,758 49.8 13,659 240,620 47.0
Cash 62,052 559,027 59,450 2,602 57,015
Marketable 20,498 184,666 15,398 5,100 12,999
securities
Net trade 87,205 785,630 82,464 4,741 77,898
receivables
Inventories 26,233 236,333 24,574 1,659 23,962
Other current assets 79,427 ____ 715,558 79,870 ____ (443) 68,744 ____
Noncurrent assets 277,866 50.2 2,503,297 264,385 50.2 13,481 271,029 53.0
Investments in 2,536 22,846 3,202 (666) 2,740
securities
Investments in 109,426 985,819 107,949 1,477 108,156
affiliates
Net property, plant 127,099 1,145,036 114,294 12,805 118,897
and equipment
Other assets 38,802 ____ 349,567 38,938 ____ (136) 41,235 ____
TOTAL 553,283 100.0 4,984,531 526,143 100.0 27,140 511,650 100.0
LIABILITIES AND STOCKHOLDERS' EQUITY
As of Sep. 30, 2004 As of Mar. 31, Change As of Sep. 30,
2004 2003
Item/Term (Yen % (U.S.$ (Yen % (Yen (Yen %
millions) thousands) millions) millions) millions)
Current liabilities 88,018 15.9 792,954 72,832 13.8 15,186 62,483 12.2
Trade payables 39,716 357,801 38,704 1,012 36,655
Accrued expenses 13,474 121,387 12,831 643 10,003
Income taxes payables 7,242 65,243 2,282 4,960 65
Other current 27,584 ___ 248,504 19,014 ___ 8,570 15,758 ___
liabilities
Noncurrent 39,487 7.1 355,738 37,432 7.2 2,055 34,043 6.7
liabilities
Retirement and 39,240 353,513 37,128 2,112 33,746
severance benefits
Directors' retirement 246 2,216 303 (57) 296
allowance
Total liabilities 127,505 23.0 1,148,693 110,264 21.0 17,241 96,526 18.9
Common stock 32,641 294,063 32,641 - 32,641
Additional paid-in 59,256 533,837 59,256 - 59,256
capital
Legal reserve 8,160 73,513 8,160 - 8,160
Retained earnings 333,425 3,003,828 321,674 11,751 321,723
Net unrealized gains 64 576 484 (420) (44)
on other securities
Treasury stock (7,770) (70,000) (6,338) (1,432) (6,615)
Total stockholders' 425,778 77.0 3,835,837 415,878 79.0 9,900 415,123 81.1
equity
TOTAL 553,283 100.0 4,984,531 526,143 100.0 27,140 511,650 100.0
Note: U.S.$1=Yen 111
Non-Consolidated
II-4) Supplementary Information (Non-Consolidated)
Ratio of results on a Consolidated basis to results on a Non-Consolidated basis
Ratio of the Ratio of the
first half corresponding
of FY2005 period of the
previous year
Net sales 1.9 2.1
Operating income 4.7 22.6
Income before income taxes 1.3 46.2
Net income 1.3 17.1
Exchange rates used for conversion
April 1, 2004 April 1, 2003
- -
Sep. 30, 2004 Sep. 30, 2003
Item/Term US$= Euro= US$= Euro=
Yen Yen Yen Yen
Sales 109.80 133.28 118.08 133.51
The end of the period 111.05 137.04 111.25 129.19
Non-Consolidated
April 1, 2004 - April 1, 2003 - April 1, 2003 -
Sep. 30, 2004 Sep. 30, 2003 March 31, 2004
Amount Ratio Amount Ratio Change Amount Ratio
to to to
Item/Term (Yen sales (Yen sales (%) (Yen sales
millions) (%) millions) (%) millions) (%)
Capital expenditures 26,994 - 8,993 - 200.2 19,627 -
Depreciation and 14,006 8.4 11,127 7.3 25.9 25,109 7.9
amortization
Research and 13,434 8.0 11,568 7.6 16.1 24,759 7.8
development
Result of financial 11,755 3,262 260.4 3,373
income
Number of employees (as 6,104 6,176 6,113
at the end of the
period)
END
TDK (LSE:TDK)
Historical Stock Chart
From Oct 2024 to Nov 2024
TDK (LSE:TDK)
Historical Stock Chart
From Nov 2023 to Nov 2024
