TDK Tdk Corp

 

 

Commission File No. 1-08346

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of October 2008

TDK CORPORATION

(Translation of registrant’s name into English)

13-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8272, Japan
(Address of principal executive offices)

     Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F		þ		Form 40-F		o

     Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes		o		No		þ

     If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______

 

 

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934,the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TABLE OF CONTENTS

• SIGNATURES
• Press release regarding TDK’s Consolidated results for the 2nd quarter of FY March 2009
Summary
1. Summary Information Regarding Consolidated Business Results
2. Summary Information Regarding Consolidated Financial Position
3. Summary Information Regarding Consolidated Projections
4. Others
5. Balance sheets
6. Statements of income
7. Statements of cash flows
8. Segment Information
9. Supplementary Information

TDK Corporation
October 30, 2008

Contact;
TDK Corporation(Tokyo)		Corporate Communications Department
		Tatsuhiko Atsumi		+81(3)5201-7102

Consolidated results (U.S. GAAP) for the 2nd quarter of FY March 2009

Summary (April 1, 2008 - September 30, 2008)

	Term			1H of FY2008										1H of FY2009															Change
				(April 1, 2007 - Sep. 30, 2007)										(April 1, 2008 - September 30, 2008)
	Item			(Yen millions)					%					(Yen millions)					%					(U.S.$ thousands)					(Yen millions)					Change(%)
	Net sales				433,088					100.0					396,537					100.0					3,812,856					(36,551	)				-8.4
	Operating income				47,145					10.9					14,381					3.6					138,279					(32,764	)				-69.5
	Income before income taxes				48,362					11.2					14,826					3.7					142,558					(33,536	)				-69.3
	Net income				34,626					8.0					11,868					3.0					114,115					(22,758	)				-65.7
	Per common share:
	Net income / Basic			Yen  266.16										Yen  92.02											U.S.$0.88
	Net income / Diluted			Yen  265.81										Yen  91.97											U.S.$0.88
	Capital expenditures				38,242					—					67,716					—					651,115					29,474					77.1
	Depreciation and amortization				33,112					7.6					38,824					9.8					373,308					5,712					17.3
	Research and development				27,051					6.2					27,149					6.8					261,048					98					0.4
	Result of financial income				4,673					—					1,899					—					18,260					(2,774	)				-59.4
	Ratio of overseas production				68.5	%				—					74.2	%				—					—
	Number of employees				58,170					—					65,243					—					—

Note:

     U.S.$1=Yen 104, for convenience only.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

TDK Corporation
October 30, 2008

		2nd quarter consolidated results (July 1, 2008 - September 30, 2008)

	Term			2Q of FY2008										2Q of FY2009															Change
				(July 1, 2007 - Sep. 30, 2007)										(July 1, 2008 - September 30, 2008)
	Item			(Yen millions)					%					(Yen millions)					%					(U.S.$ thousands)					(Yen millions)					Change(%)
	Net sales				226,389					100.0					205,914					100.0					1,979,942					(20,475	)				-9.0
	Operating income				31,016					13.7					8,988					4.4					86,423					(22,208	)				-71.0
	Income before income taxes				28,181					12.4					9,249					4.5					88,933					(18,932	)				-67.2
	Net income				18,604					8.2					7,422					3.6					71,365					(11,182	)				-60.1
	Per common share:
	Net income / Basic			Yen  144.09										Yen  57.55											U.S.$0.55
	Net income / Diluted			Yen  143.91										Yen  57.51											U.S.$0.55
	Capital expenditures				16,072					—					36,589					—					351,817					20,517					127.7
	Depreciation and amortization				16,959					7.5					20,426					9.9					196,404					3,467					20.4
	Research and development				13,493					6.0					13,889					6.7					133,548					396					2.9
	Result of financial income				2,261					—					860					—					8,269					(1,401	)				-62.0
	Ratio of overseas production				69.6	%				—					74.4	%				—					—

Note:

     U.S.$1=Yen 104, for convenience only.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

[Summary Information and Financial Statements]

1. Summary Information Regarding Consolidated Business Results

Consolidated results for the first half of fiscal 2009, the six-month period from April 1, 2008 through September 30, 2008, were as follows:

The first half of fiscal 2009 in the electronics market, which has a large bearing on the Company’s consolidated performance, saw a year-on-year rise in production of flat-screen TVs, home game consoles, notebook PCs, HDDs and mobile phones, in particular. However, demand softened for finished products with sophisticated features such as flat-screen TVs and mobile phones, particularly in industrialized nations. Because the production of high-performance products had largely driven demand for electronic components, electronic component demand also dropped as consumer appetite for high-performance products faded. This in turn led to further erosion in prices for electronic components.

TDK posted consolidated net sales of ¥396,537 million (U.S.$3,812,856 thousand), down 8.4% year on year from ¥433,088 million in the first half of fiscal 2008. Operating income fell 69.5% from ¥47,145 million to ¥14,381 million (U.S.$138,279 thousand). Income before income taxes declined 69.3% from ¥48,362 million to ¥14,826 million (U.S.$142,558 thousand). Net income declined 65.7% from ¥34,626 million to ¥11,868 million (U.S.$114,115 thousand). Basic net income per common share was ¥92.02 (U.S.$0.88), compared with ¥266.16 in the first half of fiscal 2008.

Average first-half yen exchange rates for the U.S. dollar and euro were ¥106.12 and ¥162.80, respectively, as the yen appreciated 11.1% versus the U.S. dollar and depreciated 0.3% against the euro, compared with the first half (April 1 to September 30) of the previous fiscal year. This lowered net sales by approximately ¥38.3 billion and operating income by approximately ¥12.7 billion.

(Sales by Sector)

TDK’s net sales are made up of four product sectors: (1) electronic materials, (2) electronic devices, (3) recording devices, and (4) others. Recording media sales have dropped sharply due to the August 2007 transfer of the TDK brand recording media sales business. Because recording media sales accounted for less than 10% of total net sales in the first half of fiscal 2009, these sales were included in the “others” sector. Sector sales were as follows.

(1) Electronic materials

This sector is broken down into two product categories: capacitors, and ferrite cores and magnets.

Sales in the electronic materials sector dropped 10.3% from ¥102,766 million to ¥92,188 million (U.S.$886,423 thousand).
[Capacitors] Sales decreased year on year. This reflected lower sales of multilayer ceramic chip capacitors, the main product in the capacitors category, particularly for use in PCs. Falling prices and the yen’s appreciation against the U.S. dollar were other factors behind the decrease in overall sales.

[Ferrite cores and magnets] Sales of ferrite cores and magnets rose year on year, with higher magnet sales outweighing lower ferrite core sales.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

(2) Electronic devices

This sector has three product categories: inductive devices, high-frequency components and other products.

Sales in the electronic devices sector declined 5.5% from ¥104,436 million to ¥98,728 million (U.S.$949,308 thousand).
[Inductive devices] Sales of inductive devices decreased year on year, the result mainly of lower sales of signal line coils for the auto market, multilayer products for flat-screen TVs, and transformers for home appliances.

[High-frequency components] Sales of high-frequency components increased year on year, the result mainly of higher sales for PC applications.

[Other products] Sales of other products were down year on year, with higher sensor and actuator sales unable to fully compensate for lower sales due to the termination of some power supply products and falling sales to the semiconductor market.

(3) Recording devices

This sector has two product categories: HDD heads and other.

Sector sales decreased 4.4% from ¥156,920 million to ¥150,069 million (U.S.$1,442,971 thousand).

[HDD heads] Sales decreased year on year. While the TDK Group’s HDD head sales volume increased on the back of higher demand for HDD heads in line with rising HDD unit production, overall sales were reduced by the impact of falling prices and the yen’s appreciation against the U.S. dollar.

[Other] Category sales increased year on year, mainly because sales of an HDD suspension assembly business that became a subsidiary in November 2007 contributed to first-half results for the first time.

(4) Others

This sector includes all TDK products not included in the three sectors above. The main products in the others sector are recording media, anechoic chambers, mechatronics (production equipment) and energy devices (rechargeable batteries).

Sector sales declined 19.5% from ¥68,966 million to ¥55,552 million (U.S.$534,154 thousand). Sales of energy devices and other new products rose. However, recording media sales fell.

(Overseas Sales)

Detailed sales by region can be found in the segment information on page 10.

[Japan] Overall sales fell, with sales declining in all product sectors except electronic materials.

[Americas] Overall sales declined, with sales decreasing in all product sectors except recording devices.

[Europe] Overall sales declined, with sales decreasing in all product sectors except electronic devices.

[Asia (excluding Japan) and other areas] Overall sales declined, with sales decreasing in all product sectors except others.

As a result, overseas sales declined 6.7% from ¥356,821 million to ¥332,929 million (U.S.$3,201,240 thousand). Overseas sales accounted for 84.0% of consolidated net sales, a 1.6 percentage point increase from 82.4% one year earlier.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

2. Summary Information Regarding Consolidated Financial Position

(2-1) The following table summarizes TDK’s consolidated balance sheet as at September 30, 2008.

Total assets		¥1,063,295 million				(13.7% increase)
Total stockholders’ equity		¥728,189 million				(1.6% increase)
Stockholders’ equity ratio			68.5	%		(8.1 percentage point decrease)

At September 30, 2008, cash and cash equivalents were ¥7,512 million higher than at March 31, 2008. Inventories were ¥5,429 million higher, investments in securities increased ¥75,793 million and net property, plant and equipment rose ¥32,199 million over the same period. As a result of these changes, total assets increased by ¥127,762 million compared with March 31, 2008.

Total liabilities increased by ¥116,302 million, mainly reflecting increases of ¥108,548 million in short-term debt and ¥6,762 million in trade payables from March 31, 2008. The increase in short-term debt was mainly due to the procurement of funds for purchasing EPCOS AG shares.

Total stockholders’ equity increased by ¥11,612 million compared with March 31, 2008 due mainly to a ¥2,148 million increase in retained earnings and an ¥8,434 million decrease in accumulated other comprehensive income (loss).

(2-2) Cash Flows

(¥ millions)

				Fiscal 2008 Interim					Fiscal 2009 Interim					Change
	Net cash provided by operating activities				42,152					45,841					3,689
	Net cash used in investing activities				(52,041	)				(142,859	)				(90,818	)
	Net cash provided by (used in) financing activities				(47,748	)				99,376					147,124
	Effect of exchange rate changes on cash and cash equivalents				(2,066	)				5,154					7,220
	Net increase (decrease) in cash and cash equivalents				(59,703	)				7,512					67,215
	Cash and cash equivalents at beginning of period				289,169					166,105					(123,064	)
	Cash and cash equivalents at end of period				229,466					173,617					(55,849	)

Operating activities provided net cash of ¥45,841 million (U.S.$440,779 thousand), a year-on-year increase of ¥3,689 million. Net income decreased by ¥22,758 million to ¥11,868 million (U.S.$114,115 thousand), while depreciation and amortization increased by ¥5,712 million to ¥38,824 million (U.S.$373,308 thousand). In changes in assets and liabilities, trade receivables decreased by ¥23,859 million, inventories decreased by ¥6,363 million, and the decrease in accrued expenses marked a reversal of ¥9,557 million compared with the same period of fiscal 2008.

Investing activities used net cash of ¥142,859 million (U.S.$1,373,644 thousand), ¥90,818 million more than a year earlier. Capital expenditures increased by ¥29,474 million to ¥67,716 million (U.S.$651,115 thousand), proceeds from sale and maturity of short-term investments declined by ¥14,665 million, and acquisition of affiliates

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

increased ¥74,953 million. On the other hand, there was a ¥22,915 million decrease in payment for purchase of short-term investments.

Financing activities provided net cash of ¥99,376 million (U.S.$955,538 thousand), a ¥147,124 million change from the net cash used in the same period of the previous fiscal year. In the first half of fiscal 2008, the Company used ¥39,239 million to acquire its treasury shares and ¥7,946 million to pay dividends, among other outflows that resulted in the use of net cash of ¥47,748 million. In the first half of fiscal 2009, on the other hand, there was a net increase in short-term debt of ¥108,503 million due mainly to the procurement of funds to purchase EPCOS AG shares, while ¥9,027 million was used to pay dividends.

3. Summary Information Regarding Consolidated Projections

[Fiscal 2009 Consolidated Projections]

TDK’s projections for consolidated operating results, capital expenditures, depreciation and amortization, and research and development expenses for fiscal 2009, the year ending March 31, 2009, are as follows.

[Consolidated Projections for Fiscal 2009]

	Term			October 2008																				July 2008
				Announcement					FY2008					Change from					% change					Announcement
				FY2009					(Actual)					FY2008					from					FY2009
				(Forecasts)					(¥ millions)					(¥ millions)					FY2008					(Forecasts)
	Item			(¥ millions)																				(¥ millions)
	Net sales				795,000					866,285					(71,285	)				-8.2					862,000
	Operating income				35,000					87,175					(52,175	)				-59.9					69,000
	Income before income taxes				31,600					91,505					(59,905	)				-65.5					73,500
	Net income				25,000					71,461					(46,461	)				-65.0					55,500

[Projections for Capital Expenditures, Depreciation and Amortization, and Research and Development Expenses]

	(¥ millions)
	Term			FY2009										FY2008
				(Forecasts)										(Actual)
	Item			Amount					% of sales					Amount					% of sales
	Capital expenditures				85,000					—					84,312					—
	Depreciation and amortization				77,000					9.7					71,297					8.2
	Research and development expenses				54,000					6.8					57,387					6.6

(Notes)
TDK has revised its projections for fiscal 2009 in consideration of a deterioration in the operating environment from that initially assumed, resulting from the negative effect of the financial crisis triggered in the U.S. on the real economy worldwide.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

(Projections for main products are as follows:)
Electronic Materials and Electronic Devices

Looking at the markets for electronic materials and electronic devices, supply-demand conditions are worse than initially expected and are expected to remain difficult in the second half of fiscal 2009. For this reason, TDK has revised its sales plans assuming that severe price declines will continue going forward and that the market for the full year will contract compared with the previous fiscal year.

Recording Devices

Growth is forecast on a volume basis for HDD demand in fiscal 2009. Accordingly, demand for HDD heads is similarly forecast to expand. However, TDK has revised its sales plans assuming that downward pressure on HDD head prices will increase.

(Exchange Rate Forecast)

An average yen-U.S. dollar exchange rate of ¥100 is assumed from the third quarter of fiscal 2009 onward.

(Purchase of EPCOS AG Shares)

On October 17, TDK made EPCOS AG (Headquarters: Germany; President and CEO: Gerhard Pegam) a consolidated subsidiary. Forecast results for EPCOS AG have not been reflected in TDK’s revised consolidated projections.

Cautionary Statements with Respect to Forward-Looking Statements

     This material contains forward-looking statements, including projections, plans, policies, management strategies, targets, schedules, understandings and evaluations, about TDK and its group companies (TDK Group). These forward-looking statements are based on the current forecasts, estimates, assumptions, plans, beliefs and evaluations of TDK Group in light of information currently available to it, and contain known and unknown risks, uncertainties and other factors. TDK Group therefore wishes to caution readers that, being subject to risks, uncertainties and other factors, TDK Group’s actual results, performance, achievements or financial position could be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements, and TDK Group undertakes no obligation to publicly update or revise any forward-looking statements after the issue of this material except as provided for in applicable laws and ordinances.

     The electronics markets in which TDK Group operates are highly susceptible to rapid changes. Risks, uncertainties and other factors that can have significant effects on TDK Group include, but are not limited to, shifts in technology, fluctuations in demand, prices, interest and foreign exchange rates, and changes in economic environments, conditions of competition, laws and regulations.

4. Others

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (“SFAS 157”), “Fair Value Measurements”. SFAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. TDK adopted SFAS 157 on April 1, 2008. The adoption of SFAS 157 has no material effect on TDK’s consolidated financial position and results of operations.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

5) Balance sheets

	ASSETS
	Term			As of September 30, 2008															As of March 31, 2008										Change from					As of June 30, 2008										Change from
																													March 31, 2008															June 30, 2008
				(Yen						%				(U.S.$					(Yen						%				(Yen					(Yen						%				(Yen
	Item			millions)										thousands)					millions)										millions)					millions)										millions)
	Current assets				480,963					45.2					4,624,644					462,820					49.5					18,143					487,973					49.2					(7,010	)
	Cash and cash equivalents				173,617										1,669,394					166,105										7,512					185,814										(12,197	)
	Net trade receivables				160,913										1,547,240					157,118										3,795					159,495										1,418
	Inventories				94,245										906,202					88,816										5,429					93,897										348
	Other current assets				52,188										501,808					50,781										1,407					48,767										3,421
	Noncurrent assets				582,332					54.8					5,599,346					472,713					50.5					109,619					503,752					50.8					78,850
	Investments in securities				144,507										1,389,490					68,714										75,793					68,464										76,043
	Net property, plant and equipment				299,348										2,878,346					267,149										32,199					297,621										1,727
	Other assets				138,477										1,331,510					136,850										1,627					137,667										810
	TOTAL				1,063,295					100.0					10,223,990					935,533					100.0					127,762					991,725					100.0					71,570

	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Term			As of September 30, 2008															As of March 31, 2008										Change from					As of June 30, 2008										Change from
																													March 31, 2008															June 30, 2008
				(Yen						%				(U.S.$					(Yen						%				(Yen					(Yen						%				(Yen
	Item			millions)										thousands)					millions)										millions)					millions)										millions)
	Current liabilities				278,502					26.2					2,677,904					161,961					17.3					116,541					199,524					20.1					78,978
	Short-term debt				117,446										1,129,289					8,898										108,548					40,344										77,102
	Current installments of long-term debt				200										1,923					294										(94	)				291										(91	)
	Trade payables				83,153										799,548					76,391										6,792					78,445										4,708
	Accrued expenses				68,205										655,817					63,834										4,371					69,346										(1,141	)
	Income taxes payables				2,365										22,740					7,660										(5,295	)				1,600										765
	Other current liabilities				7,133										68,587					4,884										2,249					9,498										(2,365	)
	Noncurrent liabilities				53,072					5.0					510,308					53,311					5.7					(239	)				54,421					5.5					(1,349	)
	Long-term debt, excluding current installments				157										1,510					152										5					182										(25	)
	Retirement and severance benefits				34,254										329,365					33,990										264					34,543										(289	)
	Deferred income taxes				5,873										56,471					5,998										(125	)				6,148										(275	)
	Other noncurrent liabilities				12,788										122,962					13,171										(383	)				13,548										(760	)
	Total liabilities				331,574					31.2					3,188,212					215,272					23.0					116,302					253,945					25.6					77,629
	Minority interests				3,532					0.3					33,961					3,684					0.4					(152	)				3,541					0.4					(9	)
	Common stock				32,641										313,856					32,641										—					32,641										—
	Additional paid-in capital				64,113										616,471					63,887										226					63,935										178
	Legal reserve				20,060										192,884					19,510										550					19,644										416
	Retained earnings				690,867										6,642,952					688,719										2,148					683,939										6,928
	Accumulated other comprehensive income (loss)				(73,149	)									(703,356	)				(81,583	)									8,434					(59,472	)									(13,677	)
	Treasury stock				(6,343	)									(60,990	)				(6,597	)									254					(6,448	)									105
	Total stockholders’ equity				728,189					68.5					7,001,817					716,577					76.6					11,612					734,239					74.0					(6,050	)
	TOTAL				1,063,295					100.0					10,223,990					935,533					100.0					127,762					991,725					100.0					71,570

Note:
     U.S.$1=Yen 104, for convenience only.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

6) Statements of income

[1st half results]

	Term			1H of FY2008										1H of FY2009
				(April 1, 2007 -										(April 1,2008 -															Change
				Sep. 30, 2007)										Sep. 30,2008)
				(Yen						%				(Yen						%				(U.S.$					(Yen					Change(%)
	Item			millions)										millions)										thousands)					millions)
	Net sales				433,088					100.0					396,537					100.0					3,812,856					(36,551	)				-8.4
	Cost of sales				318,318					73.5					307,556					77.6					2,957,269					(10,762	)				-3.4
	Gross profit				114,770					26.5					88,981					22.4					855,587					(25,789	)				-22.5
	Selling, general and administrative expenses				82,547					19.1					74,600					18.8					717,308					(7,947	)				-9.6
	Gain on business transfer to Imation Corp.				(14,922	)				-3.5					—					—					—					14,922					—
	Operating income				47,145					10.9					14,381					3.6					138,279					(32,764	)				-69.5
	Other income (deductions):
	Interest and dividend income				4,744										2,177										20,933					(2,567	)
	Interest expense				(71	)									(278	)									(2,673	)				(207	)
	Foreign exchange gain (loss)				(1,996	)									(1,758	)									(16,904	)				238
	Other-net				(1,460	)									304										2,923					1,764
	Total other income (deductions)				1,217					0.3					445					0.1					4,279					(772	)				-63.4
	Income before income taxes				48,362					11.2					14,826					3.7					142,558					(33,536	)				-69.3
	Income taxes				13,373					3.1					3,238					0.8					31,135					(10,135	)				-75.8
	Income before minority interests				34,989					8.1					11,588					2.9					111,423					(23,401	)				-66.9
	Minority interests				363					0.1					(280	)				-0.1					(2,692	)				(643	)				—
	Net income				34,626					8.0					11,868					3.0					114,115					(22,758	)				-65.7

[2nd half results]

	Term			2Q of FY2008										2Q of FY2009
				(July 1, 2007 -										(July 1, 2008 -															Change
				Sep. 30, 2007)										Sep. 30, 2008)
				(Yen						%				(Yen						%				(U.S.$					(Yen					Change(%)
	Item			millions)										millions)										thousands)					millions)
	Net sales				226,389					100.0					205,914					100.0					1,979,942					(20,475	)				-9.0
	Cost of sales				167,686					74.1					159,141					77.3					1,530,202					(8,545	)				-5.1
	Gross profit				58,703					25.9					46,773					22.7					449,740					(11,930	)				-20.3
	Selling, general and administrative expenses				42,609					18.8					37,785					18.3					363,317					(4,824	)				-11.3
	Gain on business transfer to Imation Corp.				(14,922	)				-6.6					—					—					—					14,922					—
	Operating income				31,016					13.7					8,988					4.4					86,423					(22,028	)				-71.0
	Other income (deductions):
	Interest and dividend income				2,304										1,059										10,183					(1,245	)
	Interest expense				(43	)									(199	)									(1,914	)				(156	)
	Foreign exchange gain (loss)				(3,631	)									(1,060	)									(10,192	)				2,571
	Other-net				(1,465	)									461										4,433					1,926
	Total other income (deductions)				(2,835	)				-1.3					261					0.1					2,510					3,096					—
	Income before income taxes				28,181					12.4					9,249					4.5					88,933					(18,932	)				-67.2
	Income taxes				9,322					4.1					1,898					0.9					18,250					(7,424	)				-79.6
	Income before minority interests				18,859					8.3					7,351					3.6					70,683					(11,508	)				-61.0
	Minority interests				255					0.1					(71	)				-0.0					(682	)				(326	)				—
	Net income				18,604					8.2					7,422					3.6					71,365					(11,182	)				-60.1

Note:
            U.S.$1=Yen 104, for convenience only.

TDK Corporation Consolidated 2Q of FY March 2009(U.S. GAAP)

7) Statements of cash flows

[1st half results]

	Term			1H of FY2008					1H of FY2009
				(April 1, 2007 - Sep. 30, 2007)					(April 1, 2008 - Sep. 30, 2008)
	Item			(Yen millions)					(Yen millions)					(U.S.$ thousands)
	Cash flows from operating activities:
	Net income				34,626					11,868					114,115
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization				33,112					38,824					373,308
	Gain on business transfer to Imation Corp.				(14,922	)				—					—
	Changes in assets and liabilities, net of effects of acquisition of businesses:
	Decrease (increase) in trade receivables				(25,008	)				(1,149	)				(11,048	)
	Decrease (increase) in inventories				(10,822	)				(4,459	)				(42,875	)
	Increase (decrease) in trade payables				18,471					4,814					46,288
	Increase (decrease) in accrued expenses				8,552					(1,005	)				(9,663	)
	Increase (decrease) in changes in other assets and liabilities, net				(116	)				(3,745	)				(36,010	)
	Other-net				(1,741	)				693					6,664
	Net cash provided by operating activities				42,152					45,841					440,779
	Cash flows from investing activities:
	Capital expenditures				(38,242	)				(67,716	)				(651,115	)
	Proceeds from sale and maturity of short-term investments				15,877					1,212					11,654
	Payment for purchase of short-term investments				(28,824	)				(5,909	)				(56,817	)
	Proceeds from sale and maturity of investments in securities				10					4,155					39,952
	Payment for purchase of investments in securities				(3,099	)				(823	)				(7,914	)
	Acquisition of affiliates				—					(74,953	)				(720,702	)
	Other-net				2,237					1,175					11,298
	Net cash used in investing activities				(52,041	)				(142,859	)				(1,373,644	)
	Cash flows from financing activities:
	Repayment of long-term debt				(271	)				(207	)				(1,991	)
	Increase (decrease) in short-term debt, net				(827	)				108,503					1,043,298
	Cash paid to acquire treasury stock				(39,239	)				(10	)				(96	)
	Dividends paid				(7,946	)				(9,027	)				(86,798	)
	Other-net				535					117					1,125
	Net cash provided by (used in) financing activities				(47,748	)				99,376					955,538
	Effect of exchange rate changes on cash and cash equivalents				(2,066	)				5,154					49,558
	Net increase (decrease) in cash and cash equivalents				(59,703	)				7,512					72,231
	Cash and cash equivalents at beginning of period				289,169					166,105					1,597,163
	Cash and cash equivalents at end of period				229,466					173,617					1,669,394