TDK举办小型会议

Shoji SatoEquity Analyst Shoji.Sato@morgannstanleymufg.comSota HarashimaEquity Analys TDK Hosts Small Meeting Sota.Haras +81 3 6836-8897 business opportunities, potential and risk management. All financial KPls in the mid-term plan to F3/27 are on-track to be achieved. In rechargeablebatteries,TDK is implementinga plan to establish another site Top PickElectronic ComponentsIJapan besides the one in China to diversify risk and capture business opportunities.In AI Ecosystems, we see big business opportunities in LFP batteries for BBU Stock Rating Industry ViewIn-LinePrice target￥3,200Up/downside to price target (%)(14)Shr price, close (May 25, 2026)¥3,715Mkt cap, curr, basic (bn)¥7,049.7Div yld (03/26e) (%)1.6Fiscal Year Ending03/2503/26e03/27e03/28e The Board continues to invest in growth areas while constantly monitoring competitive advantages in target regions and transferability of tech/equipment. between President &CEO Noboru Saito and Vice President &CFO Tetsuji Yamanishiand sell-side analysts, while the second part was an investor-inclusive meeting withBoard Chairperson Matsuo lwai and Director Shoei Yamana.Five key takeawaysfrom each part were as follows: Part 1:Sell-sidemeeting withPresident&CEOSaitoand VicePresident &CFOYamanishi1) MTP (~F3/27): Management expects to achieve all financial KPls. Of the 29 businesses under intensive monitoring, two have been improved, 13 are undergoingimprovements, nine have been transferred to best owners, and five remain underreview. The firm plans to make a decision on these five, including whether totransfer to best owners, by end-F3/27. 2)Rechargeable batteries: TDK is currently implementing a plan to establish anothersite besides the one in China to diversify risk and capture business opportunities.The firm commenced production of small-size batteries in India in Sep 2025, and isexpanding production of mid-size batteries in Malaysia following the acquisition ofLinergy Power.It also plans to start shipping mid-size batteries for BBU applicationsfrom F3/27 2H. It aims to leverage the structural advantages of LFP batteries indelivering high output and instantaneous high power. Morgan Stanley does and seeks to do business withcompanies covered in Morgan Stanley Research. As a resultinvestors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of Morgan StanleyResearch. Investors should consider Morgan StanleyResearch as only a single factor in making their investmentdecision. 3) HDD heads: TDK forecasts shipment volumes to increase 40% YoY in F3/27 dueto the start of businesses with two US companies in addition to Toshiba, and TDKaims to maintain medium to long-term relationships with all three. It also plans tocommence shipments of heads for HAMR applications on2028 For analyst certification and other important disclosures,refer to the Disclosure Section, located at the end of thisreport. 4) MLCCs: Resource allocation to high-voltage products for xEV applicationsresulted in delays for small, high-capacitance products. TDK is deploying xEV highvoltageproductsfor Alserverpower applications. += Analysts employed by non-U.S. affiliates are not registeredwith FINRA, may not be associated persons of the memberand may not be subject to FINRA restrictions oncommunications with a subject company.public appearancesand trading securities held by a research analyst account. TDK is rapidly making re-entry by shortening leadtimes for material development under itsJV with Nippon Chemical Industries (4092.T, not covered) include 1) multilayer power inductors, 2) aluminum electrolytic capacitors, 3) productionequipment such as flip-chip bonders and wafer transfer load ports, and 4) smart glasssensors integrating both motion sensors and positioning sensors. 1) TDK is a company with a Board of Auditors that has also established Nomination,Compensation, and Governance committees. The next president has been underdiscussion since current President & CEO Saito assumed the role in 2022. The firm'sstructure is designed to exercise control over the president's powers. director of TDK in 2024, and frequently raises medium to long-term R&D themes andbusiness alignment during Board meetings areas. At the same time, it evaluates at the conceptual stage rather than at the decision-making stage whether it can showcase its competitive advantages in targeted techdevelopment and production equipment investment areas, as well as the transferability oftechnologies and production equipment. TDK's strength lies in it retaining its venture spirit since founding even as it has grown toover ￥2trn in sales and ￥7trn in market cap, and 2) TDK has a globally diverse talent base,as well as outside directors that play a role in enhancing the firm's strengths, whileengaging in free and open discussion. 5) Mr Matsuo lwai was appointed as a director of TDK in 2021. As Chairperson of theBoard, he reviews past M&A and investments, discusses the