Tokyo, Japan, July 29, 2004 (PRIMEZONE) -- 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 1st quarter ("Qtr.") of fiscal year ("FY") 2005 and 2004, the three months ended June 30, 2004 and 2003 are as follows:
1) Summary Consolidated results (April 1, 2004 - June 30, 2004)
Term The 1st Qtr. of The 1st Qtr. of Change
FY2005 FY2004
(April 1, 2004 - June 30, (April 1, 2003 - June 30,
2004) 2003)
Item
(Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Net sales 157,891 100.0 1,461,954 153,216 100.0 4,675 3.1
Operating
income 14,025 8.9 129,861 10,180 6.6 3,845 37.8
Income 14,950 9.5 138,426 11,164 7.3 3,786 33.9
before
income
taxes
Net
income 10,163 6.4 94,102 8,025 5.2 2,138 26.6
Per
common
share :
Net income
/Basic Yen 76.75 U.S.$ 0.71 Yen 60.51
Net income
/Diluted Yen 76.69 U.S.$ 0.71 Yen 60.51
(Sales breakdown)
Term The 1st Qtr. of The 1st Qtr. of Change
FY2005 FY2004
(April 1, 2004 - June 30, (April 1, 2003 - June 30,
2004) 2003)
Product
(Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Electronic 130,468 82.6 1,208,037 123,789 80.8 6,679 5.4
materials
and
components
Electronic
materials 44,763 28.3 414,472 40,420 26.4 4,343 10.7
Electronic
devices 28,248 17.9 261,556 25,817 16.9 2,431 9.4
Recording
devices 52,163 33.0 482,991 53,840 35.1 (1,677) -3.1
Semi 5,294 3.4 49,018 3,712 2.4 1,582 42.6
conductors
& others
Recording
media 27,423 17.4 253,917 29,427 19.2 (2,004) -6.8
& systems
Total
sales 157,891 100.0 1,461,954 153,216 100.0 4,675 3.1
Overseas
sales 115,113 72.9 1,065,861 112,783 73.6 2,330 2.1
Notes:
1. Consolidated results for the 1st quarter of FY2005 and FY2004 are unaudited by independent accountant.
2. U.S.$1 = Yen108
2) Business Results and Financial Position
1. Summary
Consolidated results for the first quarter of fiscal year 2005, or the three-month period from April 1, 2004 through June 30, 2004, were as follows:
Consolidated net sales were Y157,891 million (U.S.$1,461,954 thousand), 3.1% higher than the Y153,216 million recorded in the corresponding period of the previous fiscal year. Operating income rose 37.8% to Y14,025 million (U.S.$129,861 thousand), from Y10,180 million. Income before income taxes increased 33.9% to Y14,950 million (U.S.$138,426 thousand), from Y11,164 million. Net income was Y10,163 million (U.S.$94,102 thousand), 26.6% higher than the Y8,025 million recorded in the first quarter of the previous fiscal year. Consequently, basic net income per common share was Y76.75 (U.S.$0.71), up from Y60.51.
Average first-quarter yen exchange rates for the U.S. dollar and euro were Y109.63 and Y132.15, respectively, as the yen appreciated 7.5% from Y118.50 versus the U.S. dollar and 1.9% from Y134.66 against the euro, compared with the first quarter of the previous fiscal year. This resulted in lowering net sales by approximately Y8.0 billion and operating income by approximately Y3.4 billion.
(Sales by Segment) TDK's businesses are broadly classified into two business segments: electronic materials and components segment and 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 rose 5.4% to Y130,468 million (U.S.$1,208,037 thousand), from Y123,789 million, while segment operating income climbed 36.3% to Y14,931 million (U.S.$138,250 thousand), from Y10,958 million. The electronics market in the first quarter of fiscal year 2005 saw demand continue to grow for mobile phones and digital home electronics appliances such as flat-screen TVs, digital still cameras and DVD recorders. These robust market conditions supported firm demand for electronic components 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 increased 10.7% to Y44,763 million (U.S.$414,472 thousand), from Y40,420 million. (Capacitors) Sales of capacitors increased year on year. Multilayer ceramic chip capacitors, the main products in the capacitor sector, recorded growth in sales due to demand for use in digital home electronics appliances and mobile phones, a rising proportion of which have color displays and cameras. This growth absorbed the effect of downward pressure on sales prices and the higher yen. (Ferrite cores and magnets) Sales of ferrite cores and magnets increased year on year. In ferrite cores, sales were buoyed by healthy demand for use in coils and transformers in digital home electronics appliances and information and communications equipment. Magnet sales rose too on the back of higher shipment volumes.
(1-2) Electronic devices This sector has three product categories: inductive devices, high-frequency components and other products.
Sales in the electronic devices sector increased 9.4% to Y28,248 million (U.S.$261,556 thousand), compared with Y25,817 million in the first quarter of the previous fiscal year. (Inductive devices) Sales of inductive devices, the largest product category in the electronic devices sector, rose year on year on higher sales to the communications equipment field, which offset the effect of downward pressure on sales prices and the higher yen. (High-frequency components) Sales of high-frequency components edged up over the previous fiscal year. There was an upswing in shipment volumes that resulted from strong demand for components used in mobile phones, the main market for these components, and successful activities to win new orders. This growth was largely negated, however, by a continuing overall glut in the supply of high-frequency components, which prompted customers to demand price reductions that were higher than in other electronic component categories. (Other products) Sales of other products rose year on year, with sensors and actuators and power systems both recording higher sales to the communications equipment market.
(1-3) Recording devices This sector has two product categories: HDD heads and other heads.
Sector sales declined 3.1% to Y52,163 million (U.S.$482,991 thousand), from Y 53,840 million. (HDD heads) Sales of HDD heads declined from the first quarter of the previous fiscal year due to a decline in orders for TDK's HDD heads, which reflected the effect of a customer producing heads in-house and lower production levels of major HDD manufacturers. (Other heads) Sales of other heads declined year on year.
(1-4) Semiconductors & others This sector has two product categories: semiconductors and others.
Sector sales climbed 42.6% to Y5,294 million (U.S.$49,018 thousand), from Y3,712 million. (Semiconductors) Sales of semiconductors declined due to lower sales to the communications equipment market. (Others) Others sales increased year on year mainly on higher sales of anechoic chambers for electromagnetic noise control.
(2) Recording media & systems segment This segment is made up of four product categories: audiotapes, videotapes, optical media and other products.
Segment sales declined 6.8% to Y27,423 million (U.S.$253,917 thousand), from Y 29,427 million. The segment recorded an operating loss of Y906 million (U.S.$8,389 thousand), which was 16.5% higher than last year'fs operating loss of Y778 million.
(Audiotapes and Videotapes) Sales of audiotapes and videotapes declined year on year. This was because, while TDK maintained a high market share, demand continued to decrease due to structural changes in the market. (Optical media) Sales of optical media increased, as strong sales 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 a brighter note, sales of LTO-standard* (Linear Tape-Open) tape-based data storage media for computers continued to increase.
* 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 10. By region, sales in Japan increased in all sectors with the exception of electronic devices. The decline in sales in electronic devices was mainly the result of customers shifting production to Asia as their main base. In the Americas, sales decreased, except in electronic devices and semiconductors & others. The major causes of these declines were lower sales to the automotive sector and the effect of the higher yen versus the U.S. dollar. In Europe, sales fell, except in electronic devices and recording devices. In Asia (excluding Japan) and other areas, sales increased in all sectors, except recording devices.
2. Financial Position (2-1) The following table summarizes TDKfs balance sheet at June 30, 2004, compared with March 31, 2004.
Total assets Y792,179 million 2.8% increase
Total stockholders' equity Y593,086 million 2.9% increase
Equity ratio 74.9% 0.1 percentage
point increase
At the end of the first quarter of fiscal year 2005, cash and cash equivalents were Y3,462 million higher than at March 31, 2004, net trade receivables were Y2,737 million higher and inventories were Y4,842 million higher. Net property, plant and equipment rose Y4,570 million. As a result of these and other changes, total assets increased Y21,860 million.
Total liabilities increased Y4,839 million. While retirement and severance benefits declined Y7,448 million, other current liabilities increased Y7,910 million and deferred income taxes rose Y2,859 million. Total stockholders' equity increased Y16,867 million. This reflected a Y5,849 million increase in retained earnings and a Y10,616 million decrease in accumulated other comprehensive loss.
(2-2) Cash Flows
(Y millions)
FY 2005 FY 2004 Change
1Q 1Q
Net cash provided by operating 18,825 25,685 (6,860)
activities
Net cash used in investing (14,060) (8,238) (5,822)
activities
Net cash used in financing (3,856) (3,378) (478)
activities
Effect of exchange rate changes on 2,553 631 1,922
cash and cash equivalents
Net increase in cash and cash 3,462 14,700 (11,238)
equivalents
Cash and cash equivalents at 227,155 170,551 56,604
beginning of period
Cash and cash equivalents at end 230,617 185,251 45,366
of period
Operating activities provided net cash of Y18,825 million (U.S.$174,306 thousand), Y6,860 million less than a year earlier. Net income rose Y2,138 million to Y10,163 million (U.S.$94,102 thousand) and depreciation and amortization increased Y591 million to Y12,308 million (U.S.$113,963 thousand). In changes in assets and liabilities, trade receivables increased Y2,353 million, inventories rose Y1,262 million and accrued expenses increased Y1,321 million.
Investing activities used net cash of Y14,060 million (U.S.$130,185 thousand), Y5,822 million more than a year earlier. Capital expenditures increased Y5,790 million to Y14,345 million (U.S.$132,824 thousand).
Financing activities used net cash of Y3,856 million (U.S.$35,704 thousand), Y478 million more than in the first quarter of the previous fiscal year. Dividends paid increased Y656 million.
3. Fiscal 2005 Projections TDK's consolidated projections for fiscal year 2005, or the year ending March 31, 2005, are as follows.
(Consolidated Projections for Fiscal 2005)
Year ending % change Year ended
March 2005 from FY2004 March 2004
(Y million) (Y million)
Net sales 680,000 3.2 658,862
Operating 60,000 10.5 54,322
income
Income before 62,000 11.5 55,603
income taxes
Net income 46,500 10.4 42,101
Notes:
1. The above projections for fiscal year 2005 are the same as those
announced on April 28, 2004.
2. The projections are based principally on the following
assumptions:
- An average exchange rate of Y105=US$1 for fiscal year 2005
from the second quarter onward.
- Orders for passive components (electronic materials and
electronic devices) as a whole are expected to remain at a
comparatively high level, supported by firm demand in the
first half of the year. However, this demand may wane by the
end of 2004.
- Orders for recording devices are expected to decline in the
first half of fiscal year 2005, but second-half sales of
these products should be supported by growth in demand for
HDDs used in PCs and consumer electronics.
- In the recording media & systems segment, lower sales of
audiotapes and videotapes are forecast. However, sales may
rise year on year in the segment as a whole, with higher
sales of optical media products absorbing this decline.
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
3) Statements of income
Term The 1st Qtr. of The 1st Qtr. of Change
FY2005 FY2004
(April 1, 2004 - (April 1, 2003 -
June 30, 2004) June 30, 2003)
(Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Item
Net
sales 157,891 100.0 1,461,954 153,216 100.0 4,675 3.1
Cost
of
sales 112,549 71.3 1,042,121 111,359 72.7 1,190 1.1
Gross
profit 45,342 28.7 419,833 41,857 27.3 3,485 8.3
Selling,
general
and
administrative
expenses 31,317 19.8 289,972 31,677 20.7 (360) -1.1
Operating
income 14,025 8.9 129,861 10,180 6.6 3,845 37.8
Other
income
(deductions) :
Interest
and
dividend
income 267 2,472 316 (49)
Interest
expense (51) (472) (56) 5
Foreign
exchange
gain 119 1,102 297 (178)
Other-net 590 5,463 427 163
Total
other
income
(deductions) 925 0.6 8,565 984 0.7 (59) -6.0
Income
before
income
taxes 14,950 9.5 138,426 11,164 7.3 3,786 33.9
Income
taxes 4,647 3.0 43,028 3,034 2.0 1,613 53.2
Income
before
minority
interests 10,303 6.5 95,398 8,130 5.3 2,173 26.7
Minority
interests 140 0.1 1,296 105 0.1 35 33.3
Net income 10,163 6.4 94,102 8,025 5.2 2,138 26.6
Notes:
1. Statements of income for the 1st quarter of FY2005 and FY2004
are unaudited by independent accountant.
2. U.S.$1=Yen108
Consolidated
4) Balance sheets
ASSETS
Term As of June 30, 2004 As of Mar. 31, 2004
(Yen (U.S.$ (Yen
millions) % thousands) millions) %
Item
Current
assets 491,546 62.0 4,551,352 475,773 61.8
Cash and
cash
equivalents 230,617 2,135,343 227,155
Marketable
securities 403 3,732 402
Net trade
receivables 141,068 1,306,185 138,331
Inventories 82,143 760,583 77,301
Other
current assets 37,315 345,509 32,584
Noncurrent
assets 300,633 38.0 2,783,639 294,546 38.2
Investments
in
securities 18,284 169,296 18,381
Net
property,
plant and
equipment 213,515 1,976,991 208,945
Other assets 68,834 637,352 67,220
TOTAL 792,179 100.0 7,334,991 770,319 100.0
Consolidated
ASSETS
Term Change As of June 30, 2003
(Yen (Yen
millions) millions) %
Item
Current assets 15,773 437,085 57.5
Cash and
cash
equivalents 3,462 185,251
Marketable
securities 1
Net trade
receivables 2,737 138,814
Inventories 4,842 76,942
Other current
assets 4,731 36,078
Noncurrent
assets 6,087 323,402 42.5
Investments in
securities (97) 18,493
Net property,
plant and
equipment 4,570 222,772
Other assets 1,614 82,137
TOTAL 21,860 760,487 100.0
LIABILITIES AND STOCKHOLDERS' EQUITY
Term As of June 30, 2004 As of Mar. 31, 2004
(Yen (U.S.$ (Yen
millions) % thousands) millions) %
Item
Current
liabilities 124,594 15.7 1,153,648 115,218 15.0
Short-
term
debt 440 4,074 416
Trade
payables 59,917 554,787 59,917
Accrued
expenses 46,250 428,241 45,534
Income taxes
payables 5,415 50,139 4,689
Other current
liabilities 12,572 116,407 4,662
Noncurrent
liabilities 71,069 9.0 658,047 75,606 9.8
Long 68 630 27
term
debt,
excluding
current
installments
Retirement
and severance
benefits 66,073 611,787 73,521
Deferred
income taxes 3,074 28,463 215
Other noncurrent
liabilities 1,854 17,167 1,843
Total
liabilities 195,663 24.7 1,811,695 190,824 24.8
Minority
interests 3,430 0.4 31,759 3,276 0.4
Common stock 32,641 302,231 32,641
Additional
paid in
capital 63,051 583,805 63,051
Legal reserve 16,817 155,713 16,497
Retained
earnings 566,605 5,246,343 560,756
Accumulated (79,771) (738,620) (90,387)
other
comprehensive
income (loss)
Treasury stock (6,257) (57,935) (6,339)
Total
stockholders'
equity 593,086 74.9 5,491,537 576,219 74.8
TOTAL 792,179 100.0 7,334,991 770,319 100.0
LIABILITIES AND STOCKHOLDERS' EQUITY
Term Change As of June 30, 2003
(Yen (Yen
millions) millions) %
Item
Current
liabilities 9,376 108,069 14.2
Short-
term
debt 24 1,865
Trade payables 55,548
Accrued expenses 716 38,071
Income taxes
payables 726 3,707
Other current
liabilities 7,910 8,878
Noncurrent
liabilities (4,537) 90,826 12.0
Long 41 107
term
debt,
excluding
current
installments
Retirement and
severance benefits (7,448) 88,567
Deferred income
taxes 2,859 2,152
Other noncurrent
liabilities 11
Total liabilities 4,839 198,895 26.2
Minority interests 154 3,372 0.4
Common stock 32,641
Additional paid in
capial 63,051
Legal reserve 320 16,352
Retained earnings 5,849 530,229
Accumulated 10,616 (79,197)
other comprehensive
income (loss)
Treasury stock 82 (4,856)
Total stockholders'
equity 16,867 558,220 73.4
TOTAL 21,860 760,487 100.0
Notes:
1. Balanace sheets as of June 30, 2004 and 2003 are unaudited
by independent accountant.
2. U.S.$1 = Yen108
Consolidated
5) Statements of cash flows
Term The 1st Qtr. of The 1st Qtr. of
FY2005 FY2004
(April 1, 2004 - (April 1, 2003 -
June 30, 2004) June 30, 2003)
(Yen millions) (U.S.$ thousands) (Yen millions)
Item
Cash flows from
operating
activities:
Net income 10,163 94,102 8,025
Adjustments to
reconcile net
income to
net cash provided
by operating activities:
Depreciation and
amortization 12,308 113,963 11,717
Loss on disposal of
property and
equipment 207 1,917 718
Deferred income taxes (276) (2,555) 916
Loss (gain) on securities (95) (880) 1,180
Changes in assets and
liabilities:
Decrease (increase) in
trade receivables (411) (3,806) 1,942
Increase in inventories (3,780) (35,000) (2,518)
Decrease in trade
payables (1,458) (13,500) (2,093)
Increase (decrease) in
accrued expenses 41 380 (1,280)
Increase (decrease) in
income taxes
payables, net 1,300 12,037 2,641
Increase in retirement
and severance
benefits 2,009 18,602 2,522
Other-net (1,183) (10,954) 1,915
Net cash provided by
operating activities 18,825 174,306 25,685
Cash flows from
investing activities:
Capital expenditures (14,345) (132,824) (8,555)
Proceeds from sales and
maturities
of available-for-sale
securities 190 1,759 89
Payment for purchase of
available-for-sale
securities (196) (1,815) -
Payment for purchase of
other investments 1 9 (10)
Proceeds from sales of
property,
plant and equipment 291 2,695 340
Acquisition of
minority interests - - (100)
Other-net (1) (9) (2)
Net cash used in investing
activities (14,060) (130,185) (8,238)
Cash flows from
financing activities:
Proceeds from long-term
debt 132 1,222 33
Repayment of long-term
debt (25) (232) (79)
Increase (decrease) in
short-term debt, net (51) (472) (15)
Sale (purchase) of
treasury stock, net 60 556 (1)
Dividends paid (3,972) (36,778) (3,316)
Net cash used in
financing activities (3,856) (35,704) (3,378)
Effect of exchange 2,553 23,639 631
rate changes
on cash and cash
equivalents
Net increase in cash
and cash equivalents 3,462 32,056 14,700
Cash and cash
equivalents at beginning of
period 227,155 2,103,287 170,551
Cash and cash equivalents
at end of period 230,617 2,135,343 185,251
Notes:
1. Statements of cash flows for the 1st quarter of FY2005 and
FY2004 are unaudited by independent accountant.
2. U.S.$1=Yen108
Consolidated
6) Segment Information
The following industry and geographic segment information are
required by the Japanese Securities Exchange Law.
1. Industry segment information
Term The 1st Qtr. The 1st Qtr.
of FY2005 of FY2004
(April 1, 2004 - (April 1, 2003 - Change
June 30, 2004) June 30, 2003)
Product (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Electronic
materials
and
components
Net sales 130,468 100.0 1,208,037 123,789 100.0 6,679 5.4
Unaffiliated
customers 130,468 1,208,037 123,789 6,679 5.4
Intersegment - - - - -
Operating
expenses 115,537 88.6 1,069,787 112,831 91.1 2,706 2.4
Operating
income 14,931 11.4 138,250 10,958 8.9 3,973 36.3
Recording
media &
systems
Net sales 27,423 100.0 253,917 29,427 100.0 (2,004) -6.8
Unaffiliated
customers 27,423 253,917 29,427 (2,004) -6.8
Intersegment - - - - -
Operating
expenses 28,329 103.3 262,306 30,205 102.6 (1,876) -6.2
Operating
income
(loss) (906) -3.3 (8,389) (778) -2.6 (128) -16.5
TOTAL
Net sales 157,891 100.0 1,461,954 153,216 100.0 4,675 3.1
Unaffiliated
customers 157,891 1,461,954 153,216 4,675 3.1
Intersegment - - - - -
Operating
expenses 143,866 91.1 1,332,093 143,036 93.4 830 0.6
Operating
income 14,025 8.9 129,861 10,180 6.6 3,845 37.8
Note: U.S.$1 = Yen108
2. Geographic segment information
Term The 1st Qtr. of FY2005
(April 1, 2004 - June 30, 2004)
Region (Yen % (U.S.$
millions) thousands)
Japan Net sales 86,661 100.0 802,417
Operating income 5,783 6.7 53,546
Americas Net sales 22,654 100.0 209,759
Operating income 272 1.2 2,519
Europe Net sales 17,266 100.0 159,871
Operating income
(loss) (269) -1.6 (2,491)
Asia and Net sales 93,440 100.0 865,185
others
Operating income 8,955 9.6 82,917
Intersegment Net sales 62,130 575,278
eliminations Operating income 716 6,630
Total Net sales 157,891 100.0 1,461,954
Operating income 14,025 8.9 129,861
The 1st Qtr.of FY2004 Change
(April 1, 2003 - Change June 30, 2003)
(Yen % (Yen %
millions) millions)
Japan Net sales 77,112 100.0 9,549 12.4
Operating income 1,510 2.0 4,273 283.0
Americas Net sales 24,752 100.0 (2,098) -8.5
Operating income 814 3.3 (542) -66.6
Europe Net sales 17,847 100.0 (581) -3.3
Operating income
(loss) (215) -1.2 (54) -25.1
Asia and Net sales 88,203 100.0 5,237 5.9
others
Operating income 8,108 9.2 847 10.4
Intersegment Net sales 54,698 7,432
eliminations Operating income 37 679
Total Net sales 153,216 100.0 4,675 3.1
Operating income 10,180 6.6 3,845 37.8
Notes:
1. The sales are classified by geographic areas of the seller and
include transfers between geographic areas.
2. U.S.$1 = Yen108
3. Sales by region
Term The 1st Qtr. The 1st Qtr.
of FY2005 of FY2004
(April 1, 2004 - (April 1, 2003 - Change
June 30, 2004) June 30, 2003)
Region (Yen % (U.S.$ (Yen % (Yen %
millions) thousands) millions) millions)
Americas 20,577 13.0 190,528 22,498 14.7 (1,921) -8.5
Europe 17,328 11.0 160,444 18,025 11.8 (697) -3.9
Asia and
others 77,208 48.9 714,889 72,260 47.1 4,948 6.8
Overseas
sales
total 115,113 72.9 1,065,861 112,783 73.6 2,330 2.1
Japan 42,778 27.1 396,093 40,433 26.4 2,345 5.8
Net
sales 157,891 100.0 1,461,954 153,216 100.0 4,675 3.1
Notes:
1. Sales by region are classified by geographic areas of the buyer.
2. U.S.$1 = Yen108
Consolidated (Notes)
1. The consolidated financial statements are prepared in conformity with the U.S. GAAP.
2. During this consolidated accounting period, TDK had 71 subsidiaries (20 in Japan and 51 overseas). TDK also had 8 affiliates (5 in Japan and 3 overseas) whose financial statements are accounted for by the equity method.
3. Comprehensive income comprises net income and other comprehensive income. Other comprehensive income includes changes in foreign currency translation adjustments, minimum pension liability adjustments and net unrealized gains (losses) on securities. The net income, other comprehensive income (loss) and total comprehensive income for the three months ended June 30, 2004 and 2003 were as follows;
Term The 1st Qtr. The 1st Qtr.
of FY2005 of FY2004
(April 1, 2004 - (April 1,2003 -
June 30, 2004) June 30,2003)
Item (Yen millions) (U.S.$ thousands) (Yen millions)
Net income 10,163 94,102 8,025
Other
comprehensive
income (loss),
net of tax:
Foreign currency
translation adjustments 5,464 50,593 717
Minimum pension
liability adjustments 5,518 51,092 (1,485)
Net unrealized gains
(losses) on securities (366) (3,389) 395
Total comprehensive
income 20,779 192,398 7,652
Note: U.S.$1=Yen 108
Contact in Japan : Nobuyuki Koike TDK Corporation Tel: 81-3-5201-7102 E-mail: nkoike@mb1.tdk.co.jp
Notice Regarding the Allotment of Stock Options Stock Acquisition Rights
TOKYO, JAPAN, July 29, 2004 ----- TDK Corporation (the "Company") announced that the Board of Directors today decided the details of stock acquisition rights to be issued as stock options (the "Stock Acquisition Right(s)") pursuant to Article 280-20, -21 of the Commercial Code of Japan and the resolution at the 108th ordinary annual general meeting of shareholders on June 29, 2004.
1. Class and number of shares to be issued upon exercise of Stock Acquisition Rights:
234,300 shares of common stock of the Company
2. Total number of Stock Acquisition Rights:
2,343
The number of shares to be allotted to each Stock Acquisition Right (hereinafter referred to as the "Number of shares to be allotted") shall be 100 shares. In the case that the Company splits or consolidates outstanding shares, the number of shares to be allotted shall be adjusted in accordance with the following formula with any amount less than one share arising out of such adjustment to be discarded.
Number of shares = Number of shares X Percentage of stock split after adjustment before adjustment or consolidation
In the case that the Company merges with another company, performs a division or makes a reduction of paid-in capital or in other similar cases where the number of shares to be allotted needs to be adjusted, the number of shares to be allotted shall be appropriately adjusted.
3. Issue price and issue date of Stock Acquisition Rights:
Free of charge On August 6, 2004
4. Amount to be paid upon the exercise of each Stock Acquisition Right:
To be determined on August 6, 2004 The amount to be paid upon the exercise of each Stock Acquisition Right shall be the amount to be paid per share, which is issued or transferred upon the exercise of the Stock Acquisition Rights (hereinafter referred to as the "Exercise Price") multiplied by the number of shares to be allotted. The Exercise Price shall be an amount which is the average of the closing prices of the Company's shares of common stock on the Tokyo Stock Exchange on each day (other than any day on which no sale is reported) of the month immediately preceding the month in which the date of the issue of the Stock Acquisition Rights falls, multiplied by 1.05 with any amount less than one Japanese Yen arising out of such calculation to be rounded upward to the nearest Yen; provided, however, that if such price is less than the closing price reported on the date of the issue of the Stock Acquisition Rights (the closing price of the immediately preceding day, in case no sale is reported on the day of the issue), then the closing price reported on the day of the issue of the Stock Acquisition Rights shall be the Exercise Price.
5. Adjustment of Exercise Price:
In case that any of the events stated in the following clause (1) or (2) arises, the Exercise Price shall be adjusted in accordance with the following formula (hereinafter referred to as the "adjustment formula for the Exercise Price") with any amount less than one Japanese Yen arising out of such calculation to be rounded upward to the nearest Yen.
(1) In case that the Company issues new shares or disposes of its treasury stock at a price less than the current market price (other than shares issued upon exercise of stock acquisition rights or transfer of its treasury stock pursuant to the provisions of Section 2, Article 5 of the Supplement of the Law regarding the Partial Amendments, etc. to the Commercial Code, etc. (Law No.79 of Heisei 13 (2001) , or the transfer of its treasury stock pursuant to a request by a shareholder for a sale of shares constituting less than one unit which, when added to shares less than one unit currently owned by such shareholder, shall constitute a full unit).
No. of shares Amount paid
No. of newly issued X per share
shares issued + ----------------------------------
Exercise
price = Exercise
price Current market price
after
adjustment before
adjustment X
---------------------------------------
No. of shares issued + No. of shares increased
after new issue
i. The "number of shares issued" used in the adjustment formula for the Exercise Price shall be the number of issued shares of the Company on the date of allotment of shares to shareholders, as the case may be, or the number of issued shares of the Company on the date in the previous month corresponding to the date on which the Exercise Price after adjustment is enforced after deducting the number of its treasury stock at that time.
ii. In the event that the Company disposes of its treasury stock, the "number of shares newly issued" used in the adjustment formula for the Exercise Price shall be read as meaning the "number of shares disposed of".
(2) In case that the Company shall make a stock split or stock consolidation of its outstanding shares.
Exercise Price = Exercise Price 1
after adjustment before adjustment X----------------------
Percentage of stock
split or consolidation
In case that the Company merges, performs a division or makes a reduction of paid-in capital or in other similar cases where the Exercise Price for the Stock Acquisition Rights needs to be adjusted, the Exercise Price for the Stock Acquisition Rights shall be appropriately adjusted to reflect the conditions of merger or division, or the extent of a reduction of paid-in capital.
6. Exercise Period of the Stock Acquisition Rights: From August 1, 2006 to July 31, 2010
7. Other conditions for exercise of Stock Acquisition Rights: Partial exercise of each of the Stock Acquisition Rights is not exercisable.
8. Events and conditions of cancellation of Stock Acquisition Rights
(1) In case an agenda for approval of a merger agreement, under which the Company is dissolved, is approved at a general meeting of shareholders of the Company, or in case an agenda for approval of a stock exchange agreement or an agenda for share transfer is approved at a general meeting of shareholders of the Company, the Company may cancel the Stock Acquisition Rights without compensation. (2) The Company may, at any time, cancel free of charge, such outstanding Stock Acquisition Rights as have been acquired and owned by itself.
9. Transfer restrictions on Stock Acquisition Rights: Any transfer of the Stock Acquisition Rights shall be subject to approval of the Board of Directors of the Company.
10. Issuance of certificates of Stock Acquisition Rights: Certificates of Stock Acquisition Rights shall be issued only upon the request from the holders of the Stock Acquisition Rights.
11. Total paid-in value of the shares of the common stock of the Company to be issued or transferred upon exercise of all the stock Acquisition Rights: To be determined on August 6, 2004
12. Amount that is not transferred into paid-in capital from the issue price of shares, in case new shares of common stock of the Company are issued upon exercise of Stock Acquisition Rights:
This shall be an amount obtained by deducting an amount transferred to paid-in capital from the Exercise Price. The amount transferred to paid-in capital shall be the Exercise Price, multiplied by 0.5, and any amount less than one Japanese Yen arising out of such calculation shall be rounded upward to the nearest Yen.
13. Individuals who will be allotted the Stock Acquisition Rights:
The directors and employees of the Company and its affiliates, totally 187 persons.
* 1. Date of resolution of the Board of Directors that decided the proposal at the 108th ordinary annual general meeting of shareholders:
April 28, 2004
2. Date of resolution of the 108th ordinary annual general meeting of shareholders:
June 29, 2004
Paste the following link into your web browser to download the PDF document related to this announcement:
http://www.rns-pdf.londonstockexchange.com/rns/3581b_-2004-7-29.pdf