TDK : Consolidated results (IFRS) for FY March 2022

TDK Corporation (6762) Consolidated FY March 2022 (IFRS)

		TDK Corporation
		June 24, 2022
Contact:
TDK Corporation (Tokyo)	IR&SR Group
	Satoshi Sakai	[phone]

Consolidated results (IFRS) for FY March 2022

(Millions of yen, %)

Term		FY 2021		FY 2022		Change
		(April 1, 2020 - March 31, 2021)	(April 1, 2021 - March 31, 2022)
Account		Amount	% to	Amount	% to	Amount	%
	net sales	net sales
Net sales	1,479,008			100.0	1,902,124			100.0	423,116			28.6
Operating profit	111,814			7.6	166,775			8.8	54,961			49.2
Profit before tax	117,263			7.9	172,490			9.1	55,227			47.1
Net profit attributable to owners of	74,681			5.0	131,298			6.9	56,617			75.8
parent
Earnings per share:
- Basic		197.06 yen		346.44yen
- Diluted		196.66 yen		345.65yen
Purchase of tangible and intangible
212,196			-	291,337			-	79,141			37.3
assets
Depreciation and amortization	148,356			10.0	177,031			9.3	28,675			19.3
Research and development	127,409			8.6	165,250			8.7	37,841			29.7
expenses
Finance income (cost), net	4,000			-	2,995			-	(1,005)			-
Overseas production ratio	86.2%			-	89.0%			-
Number of employees	129,284			-	116,808			-

Note: Effective October 1, 2021, TDK implemented a share split at a ratio of three shares per common share. The basic and diluted earnings per share are calculated assuming that the share split was implemented at the beginning of the fiscal year endedMarch 31, 2021.

TDK Corporation (6762) Consolidated FY March 2022 (IFRS)

［Contents］

1．	Business Results
(1)	Summary Information Regarding Consolidated Business Results	・・・・	P.2
(2)	Projections	・・・・	P.7
(3)	Summary Information Regarding Consolidated Financial Position	・・・・	P.9
(4)	Summary Information Regarding Consolidated Cash Flows	・・・・	P.10
(5)	Fundamental Policy for Distribution of Earnings, and Fiscal 2022 and	・・・・	P.12
	Fiscal 2023 Dividends

2．	Management Policies
(1)	Fundamental Management Policy	・・・・	P.13
(2)	Targeted Management Indicators	・・・・	P.13
(3)	Medium- and Long-Term Management Strategy	・・・・	P.14
(4)	Pressing Issues	・・・・	P.16
3．	Basic Rationale for Selection of Accounting Standards	・・・・	P.17

4． Consolidated Financial Statements and Notes to the Consolidated Financial Statements

(1)	Consolidated statements of financial position	・・・・	P.18
(2)	Consolidated statements of profit or loss and comprehensive income	・・・・	P.20
(3)	Consolidated statements of changes in equity	・・・・	P.22
(4)	Consolidated statements of cash flows	・・・・	P.24
(5)	Notes to the consolidated financial statements	・・・・	P.26
(6)	Appendix to the Consolidated Financial Statements	・・・・	P.53

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TDK Corporation (6762) Consolidated FY March 2022 (IFRS)

[Summary Information and Financial Statements]

1. Business Results

1. Summary Information Regarding Consolidated Business Results
   Consolidated results for fiscal 2022, the year ended March 31, 2022, were as follows.

In fiscal 2022, while the global economy was affected by the resurgence of the COVID-19 pandemic and concerns over political conflicts such as the tensions between the U.S. and China, corporate capital expenditure remained brisk as social and economic activities were gradually normalized and production activities continued to rebound. Since the beginning of the fourth quarter, however, geopolitical risks rapidly increased as a result of Russia's invasion of Ukraine, causing heightened concerns over the supply of materials and energy and soaring prices. As a result, the outlook of the global economy remained unclear.

Looking at the electronics market, which has a large bearing on the consolidated performance of TDK, production volume in the automotive market remained flat from the previous fiscal year due to the supply chain constraints in components procurement. However, automotive-related demand remained strong on the back of an increase in the number of components installed per vehicle and stockpiling by customers. In the Information and Communications Technology (ICT) market, demand for notebook PCs and tablets remained strong. On the other hand, smartphone production volume for fiscal 2022 fell below that of the previous fiscal year as the resurgence of COVID-19 and other factors negatively affected components procurement and demand. Production of Hard Disk Drives (HDDs) for servers remained strong, reflecting a recovery in demand related to data centers. In the industrial equipment market, thanks to strong capital expenditure, demand remained robust.

In this business environment, the TDK's consolidated operating results for fiscal 2022 were as follows.

Summary (April 1, 2021 - March 31, 2022)

Term		FY2021			FY2022				Change
		(April 1, 2020 - March 31, 2021)		(April 1, 2021 - March 31, 2022)
Item		(Yen millions)	%		(Yen millions)	%		(Yen millions)	Change(%)
Net sales		1,479,008		1,902,124		100.0	423,116
	100.0		28.6
Operating profit		111,814	7.6	166,775		8.8	54,961	49.2
Profit before tax		117,263	7.9	172,490		9.1	55,227	47.1
Net profit attributable to owners of parent		74,681	5.0	131,298		6.9	56,617	75.8
Per common share :
Net profit
attributable to owners of parent / Basic		Yen 197.06			Yen 346.44
Net profit
attributable to owners of parent / Diluted		Yen 196.66			Yen 345.65

Note:

1. TDK split one share of its common stock into three shares on effective date of October 1, 2021. "Net profit attributable to owners of parent" is calculated based on the assumption that the share split was conducted on April 1, 2020.

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TDK Corporation (6762) Consolidated FY March 2022 (IFRS)

Average yen exchange rates for the U.S. dollar and the euro during fiscal 2022 were ¥112.33 and ¥130.53, respectively, as the yen depreciated 5.9% against the U.S. dollar and 5.5% against the euro. As a result of these factors and fluctuations in foreign exchange rates, net sales increased by approximately ¥125.7 billion and operating profit increased by approximately ¥6.9 billion.

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TDK Corporation (6762) Consolidated FY March 2022 (IFRS)

Sales by Product

	Term	FY2021	FY2022
		(April 1, 2020 -	(April 1, 2021 -	Change
		March 31, 2021)	March 31, 2022)
	Product
	(Yen millions)	%	(Yen millions)	%	(Yen millions)	Change(%)
	Capacitors	158,182	10.7	198,110	10.4	39,928	25.2
	Inductive Devices	139,990	9.4	179,944	9.5	39,954	28.5
	Other Passive Components	108,954	7.4	127,144	6.7	18,190	16.7
	Passive Components	407,126	27.5	505,198	26.6	98,072	24.1
	Sensor Application Products	81,345	5.5	130,769	6.9	49,424	60.8
	Magnetic Application Products	199,253	13.5	248,446	13.1	49,193	24.7
	Energy Application Products	740,227	50.0	965,345	50.7	225,118	30.4
	Other	51,057	3.5	52,366	2.7	1,309	2.6
Total	1,479,008	100.0	1,902,124	100.0	423,116	28.6
Overseas sales	1,361,803	92.1	1,753,086	92.2	391,283	28.7

1) Passive Components Segment

This segment is made up of (1) Capacitors, (2) Inductive Devices, and (3) Other Passive Components. Sales in the Passive Components segment were ¥505,198 million, up 24.1% year on year from ¥407,126 million.

Capacitors is made up of Ceramic Capacitors, Aluminum Electrolytic Capacitors, and Film Capacitors. Sales in the Capacitors were ¥198,110 million, up 25.2% year on year from ¥158,182 million. Sales of Ceramic Capacitors increased to the automotive market. Sales of Aluminum Electrolytic Capacitors and Film Capacitors increased to the industrial equipment market.

Sales of Inductive Devices increased by 28.5% year on year from ¥139,990 million to ¥179,944 million. Sales increased to the automotive and the industrial equipment markets.

Other Passive Components include High-Frequency Devices, Piezoelectric Material Products and Circuit Protection Components. Sales of Other Passive Components increased by 16.7% year on year from ¥108,954 million to ¥127,144 million. Sales increased mainly to the industrial equipment market.

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