TDK Corporation Q4 FY2026 earnings call

• Fiscal year March 2026 achieved increased sales and profit, free cash flow exceeded assumptions, shareholder returns revised upward. • Fiscal year March 2027 faces headwinds like Middle East tensions and lower ICT device production but will reinforce management by improving capabilities and enhancing business portfolio management. • Intensifying engagement with investors, plan investor day on September 1 to talk about software technology and human capital. • Highlights of consolidated results including performance in different markets such as ICT, industrial equipment, automotive and segment-wise details. • Progress on investment in AI ecosystem, growth strategy on AI data center-related products, and business portfolio management. • Initiatives in semiconductor manufacturing equipment and passive components for AI data center infrastructure

Passive components: Net sales 593.2 billion yen, up 6% year-on-year, operating profit 41.8 billion yen, up 22.8% year-on-year. Ceramic capacitors saw higher sales but lower profit due to lower average selling prices. Aluminum electrolytic and film capacitors had increased sales in industrial equipment markets. Inductive devices had higher sales but slightly decreased profit. High-frequency components saw decreased sales but improved profitability. Diesel electric material products and circuit protection components had increased net sales and profit. Sensor application products: Net sales 224.6 billion yen, up 18.6% year-on-year, operating profit 20.7 billion yen, full-fold growth. Temperature and pressure sensors had decreased profit. Magnetic sensors had higher sales and profit. MEMS sensors turned from loss to profit. Magnetic application products: Net sales 262.9 billion yen, up 17.6% year-on-year, operating profit 27 billion yen, significant increase. HDD heads and suspension assemblies had increased sales and profit for heads, but suspensions had decreased sales and profit. Magnets had increased net sales and shrinking loss. Energy application products: Net sales 1,370 billion yen, up 16.5%, operating profit up 246.7%. Rechargeable batteries had increased sales and profit. Power supplies for industrial equipment had increased sales and profit

• Fiscal year March 2027 net sales projected at 2.58 trillion yen, operating profit 295 billion yen, net profit 225 billion yen. • Free cash flow forecast at 60 billion yen. • Dividend per share planned at 40 yen for full year 2027 March, with 20 yen each for mid-year and year-end. • CapEx planned to increase significantly for mid-term growth. • Business portfolio management plans about 6 billion yen in one-time expenses like restructuring costs. • Assumes exchange rates 150 yen to dollar and 175 yen to euro