Slides
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To Enhancement of Corporate Value through Pre-Financial Capital TDK Corporation IR&SR Group, Corporate Strategy HQ September 1, 2026 TDK Investor Day 2026
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Agenda 1. Opening Remarks 2. CHRO Session Human Capital Management 3. CTO Session Cutting-edge Technology 4. Q&A Session
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My Commitment as President & CEO ⚫ We have formulated our vision of what we want to be 10 years from now (Long-term Vision). We have back-casted from our vision for 10 years to identify the path to enhancing our corporate value. ⚫ Based on our materials × process × software technologies, we will become the No.1 partner for our world-wide customers and accelerate social transformation for a sustainable future. ⚫ We will enhance our business portfolio management, increase the spread between ROIC and WACC, increase cash flows, improve capital efficiency, and strengthen business management to increase financial capital. ⚫ We will evolve the Ferrite Tree and reinforce business management to increase pre-financial capital, which is the source of future cash flows. ⚫ We will focus more on investor dialogue and investor relations. 本日お話しすること Today’s Topic Today’s Topic
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Copyright © TDK Corporation, 2026. 4 Pre-Financial Capital Supporting the Long-term Vision Value Creation and Establishment of Competitive Advantage through Business Activities Key Issues (materiality)Long-term Vision “TDK Transformation” TDK’s Business Model Human Resources StrategyMedium-term Plan Strategic position 1 2 3 Strengthen Management Focusing on Cash Flows Enhance Business Portfolio Management (Emphasizing ROIC) Evolve the Ferrite Tree (Pre-financial Capital) Three Key Initiatives ⚫ Enhancement in Human Capital as a Change Driver ⚫ Strengthening in Value Creation through TDK United ⚫ Advancement in Technical Capability Five Pillars of Strategy Execution Inclusive Leadership Practices Organization Capability and Efficiency Team Member Health and Engagement Attract and Develop Talent Global Leadership Pipeline Capability of management transformation Create Customer Value and Build Strong Relationships Contribute to Social Transformation through R&D Stabilize Supply of High-quality Products and Increase Production Efficiency Transformation through Promoting and Cultivating Diverse Pool of Human Resources to Further Enhance Competitive Advantage Advance Group Governance Address Environmental and Social Issues Strengthening of the Management Foundation that Envisions and Realizes the Future
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Copyright © TDK Corporation, 2026. 5 “RENDO“Alignment of HR Strategy with Corporate Strategy Management issues As the talent portfolio should be Human Resources Strategy TDK’s Business Model Capability of Management Transformation Strategic Position Constant securing of investment capacity and optimal investment Capability to Envision the Future Capability to Execute Human Resources Transformation Market-In Concept-Out System Module Parts Material TDK Customers First-to- Market Five Pillars of Strategy Execution Three Key Initiatives ⚫ Strengthening the talent Who drive the business transformation / Who drive the innovation / Who is capable of AI/Software / Who can provide solution ⚫ Strengthen existing businesses ⚫ Business portfolio transformation Leveraging innovation / Strengthening software technology / Strengthening solution business Attract and Develop Talent Global Leadership Pipeline Organization Capability and Efficiency Team Member Health and Engagement Inclusive Leadership Practices ⚫ Enhancement in Human Capital as a Change Driver ⚫ Strengthening in Value Creation through TDK United ⚫ Advancement in Technical Capability Corporate Strategy united with HR Strategy
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Copyright © TDK Corporation, 2026. 6 Toward Realizing Our Mid- to Long-term Target State Growing Challenging Profit base Profit enhancement Strategic restructuring （ ） R O IC Next generation 02 Actions for businesses to be intensively monitored Mid/long-term target state Evaluate business retention based on both a 10% minimum hurdle rate and business potential Pursue growth with raising profitability of growth drivers Strengthen growth investments in the AI ecosystem and related areas Drivers Key measures ROE 15% or more ROIC 12% or more OPM 15% or more Organic growth & profitability enhancement for growth-driving businesses 01 Actions for ‘Businesses to be intensively monitored’02 Inorganic growth03 CAPEX R&D Invest. R&D Invest. CVC Invest. M&A Restruct. M&A New business launch CVC Invest. 01 Organic growth & profitability enhancement for growth-driving businesses 03 Inorganic growth Sales CAGR 10% or more BizROA(ROIC) HighLow Business potential HighLow Minimum hurdle rate over 10% Profitability Low profitability We will further advance our business portfolio management by pursuing both organic and inorganic growth.
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Copyright © TDK Corporation, 2026. 7 We Will Help Boost Sales for the Entire AI Ecosystem FY3/26 FY3/27 FY3/31 ▍Sales for AI Market (FY3/26 Actual - FY3/31Target） Current Business Energy Application Products Sensors + New Biz Semiconductor Manufacturing Equipment CAGR 25～30% YoY 25% 01 Organic growth & profitability enhancement for growth- driving businesses Semiconductor Manufacturing Equipment ＋ Bonding system Sensors + New Businesses Sensors Gateway TDK SensEI Collaboration of EdgeRX platform with AWS Smart Glasses Business Load port TDK products Various sensors Small capacity batteries Full-color laser module (FCLM) ＋ Acquired Technologies QD Laser: Retinal projection SoftEye: Eye-tracking Retina Laser Bonding material s Launch industry-first mass production of nanocomposite material By M&A and establishing AR platforms BD, we aim to expand our product lineup and pursue growth
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Copyright © TDK Corporation, 2026. 8 Human Capital Management, Fueling Innovation & Inclusive Growth Andreas Keller Executive Vice President, CHRO and General Manager of the Human Resources HQ
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Andreas Keller Executive Vice President, CHRO, and GM of the Human Resources HQ 2000 Joined the TDK Group 2017 GM, HR & Administration HQ 2018 GM, Human Resources HQ (present post) Corporate Officer 2021 Senior Vice President 2023 Chief People and Sustainability Officer 2025 Executive Vice President (present post) Chief Human Resources Officer (present post) Career at TDK Early Career • Started career at Hilton
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Copyright © TDK Corporation, 2026. 10 “RENDO“Alignment of HR Strategy with Corporate Strategy Management issues As the talent portfolio should be Human Resources Strategy TDK’s Business Model Capability of Management transformation Strategic Position Constant securing of investment capacity and optimal investment Capability to Envision the Future Capability to Execute Human Resources Transformation Market-In Concept-Out System Module Parts Material TDK Customers First-to- Market Five Pillars of Strategy Execution Threes Key Initiatives ⚫ Strengthening the talent Who drive the business transformation / Who drive the innovation / Who is capable of AI/Software / Who can provide solution ⚫ Strengthen existing businesses ⚫ Business portfolio transformation Leveraging innovation / Strengthening software technology / Strengthening solution business Attract and Develop Talent Global Leadership Pipeline Organization Capability and Efficiency Team Member Health and Engagement Inclusive Leadership Practices ⚫ Enhancement in Human Capital as a Change Driver ⚫ Strengthening in Value Creation through TDK United ⚫ Advancement in Technical Capability Corporate Strategy united with HR Strategy
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Copyright © TDK Corporation, 2026. 11 TDK Human Induction Cycle Attract and Develop Talent Global Leadership Pipeline Organization Capability and Efficiency Team Member Health and Engagement Inclusive Leadership Practices Three Key Initiatives ⚫ Enhancement in Human Capital as a Change Driver ⚫ Strengthening in Value Creation through TDK united ⚫ Advancement in Technical Capability Same as how an inductor stores energy in a magnetic field for efficient release, TDK's Human Capital brings out individual potential, enhances them through culture, delivers it as societal value through TDK Transformation.
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Copyright © TDK Corporation, 2026. 12 TDK Human Capital Value Creation Model Overseas employee ratio Approx. 89% Members joined via M&A Approx. 75% INPUT Talent with diverse abilities, skills, and personalities M&A Success with uniqueness of embracing culture and realizing dream with support of TDK’s asset. Human Resources Strategy FY3/26 Result FY3/27 Target Engagement Score 76pts. YoY+ Response rate 92% 80%＋ Communication score 71pts. 75+pts. Number of GMDP*1 participants 367 500＋ Ratio of female participants in GMDP 26% 30% Successor readiness rate for Top Executives 212% 200%＋ Number of Applicants*2 140% YoY+ OUTPUT Threes Key Initiatives ⚫ Enhancement in Human Capital as a Change Driver ⚫ Strengthening in Value Creation through TDK United ⚫ Advancement in Technical Capability Five Pillars of Strategy Execution Global Leadership Pipeline Organization Capability and Efficiency Team Member Health and Engagement Inclusive Leadership Practices Attract and Develop Talent Internal Venture Building “Leveraging Experience” Empowerment & Transparency TDK United TDK’s Unique Corporate Culture Venture Spirit Respect for Diversity Functional Equality *1 Global Management Development Programs *2 This applies only to new graduates for generalist positions at TDK Corporation. *3 Operating Profit ÷ Human Capital Cost. Human capital cost is calculated based on employee benefit expenses. This report prioritizes data disclosure, with plans to consider benchmark-based targets going forward. Human Capital Financial Capital
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Copyright © TDK Corporation, 2026. 13 Overseas employee ratio Approx. 89% Members joined via M&A Approx. 75% Human Capital Financial Capital INPUT Talent with diverse abilities, skills, and personalities M&A Success with uniqueness of embracing culture and realizing dream with support of TDK’s asset. Human Resources Strategy FY3/26 Result FY3/27 Target TDK United TDK’s Unique Corporate Culture Venture Spirit Respect for Diversity Functional Equality OUTPUT Threes Key Initiatives ⚫ Enhancement in Human Capital as a Change Driver ⚫ Strengthening in Value Creation through TDK United ⚫ Advancement in Technical Capability Five Pillars of Strategy Execution Global Leadership Pipeline Organization Capability and Efficiency Team Member Health and Engagement Inclusive Leadership Practices Attract and Develop Talent Internal Venture Building “Leveraging Experience” Empowerment & Transparency *1 Global Management Development Programs *2 This applies only to new graduates for generalist positions at TDK Corporation. *3 Operating Profit ÷ Human Capital Cost. Human capital cost is calculated based on employee benefit expenses. This report prioritizes data disclosure, with plans to consider benchmark-based targets going forward. Venture Spirit Functional Equality Diversity Diversity TDK Human Capital Value Creation Model
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Copyright © TDK Corporation, 2026. 14 Team Member Engagement FY3/24 FY3/25 FY3/26 Target (FY3/27) Engagement score 72pts. 72pts. 76pts. + Last Year Communication score 67pts. 68pts. 71pts. 75pts. or more Response rate 80% 90% 92% 80% or more ⚫ Establish readily-accessible communication channels ⚫ Support global collaboration, effective communication ⚫ The company-wide Town Hall, in which all team members are informed about important developments in the company and can ask questions directly to the Management Board ▍ Initiatives New Member Induction Ceremony & Welcome Party* Town Hall Meeting** Quarterly, Globally held International Women’s Day*** **4 times in FY3/26 * April 2026 *** March 2026 ▍ KPI Progress We monitor communication-score to enrich the corporate culture of Functional Equality.
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Copyright © TDK Corporation, 2026. 15 Global Leadership Pipeline(GMDP=Global Management Development Program) FY3/24 FY3/25 FY3/26 Target (FY3/27) # of GMDP 193 179 188 Accumulate 179 367 500+* % of female in GMDP 25.4% 25.7% 26.1% 30% Successor readiness for top Executives 139% 190% 212% 200%+ Strengthening Global Leadership and Enhancing TDK’s Competitiveness *The target is a three-year cumulative number in the current Medium-term Plan 13% Percentage of female 9% FY3/25 FY3/26 Global Executive Management Program (GEMP) with IESE Business School and Shizenkan University GM、DGM 10%10% Global Advanced Management Program (GAMP) with IMD Business school 24%26% Global Management Program (GMP) 30%28% Territorial Career Development Program (TCDP) *** The cumulative number of participants for each training program is as of July 2026. These figures may be subject to change depending on future updates to the calculation methodology. Approx. 40 participants Approx. 160 participants Approx. 150 participants Approx. 900 participants ▍ KPI Progress
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Copyright © TDK Corporation, 2026. 16 Outcome of Cross Functional and International GMDP Training GMDP build not only a global leadership pipeline but also business models. Internal incubator program and SensEI was established through GEMP(Global Executive Management Program). ▍ SensEI▍ “TDK LaunchEngine”- In-House Incubator Program At TDK, we take on the challenge of creating new value by applying our entrepreneurial spirit across organizational hierarchies, job titles, and operational roles. SensEI was established by outside the Sensor business group from GEMP . Two companies through In- House incubation program Short-term Mid-term Long-term Develops sustainable technologies that permanently destroy PFAS — the toxic ‘forever chemicals’ — tackling one of today’s toughest environmental challenges. Industry's first interactive EMC visualization platform
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Copyright © TDK Corporation, 2026. 17 Employer Branding Initiatives Corporate Branding Employer Branding ⚫ Becoming an employer of choice for job seekers ⚫ Giving team members reasons to stay and grow at TDK ⚫ Strengthening the human resources pipeline for managementTarget Current team member and job seekerCustomer, Stake holders etc. Purpose Activity Message To attract and retain talents and increase team member engagement To earn the trust and support of customers and society To communicate the value of the company as a “workplace” Convey a company’s overall image and value to society and customers Why work for us? And Stay?Why buy from us? RENDO, alignment ⚫ Establishing a Truly Unified Global Identity ⚫ Consistency of Messaging in the Global Market ⚫ Clearly Communicating Our Appeal as an Employer ⚫ Building Long-Term Trust ▍ Three outcome ▍ Four targets Employer Branding is not merely a communication initiative. It is a strategic business lever that drives competitiveness and sustainable growth. Employer branding communicates our values, impact, and growth opportunities as an employer. It helps engage current team members, attract job seekers, and foster collaboration across locations.
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Greg Brower Head of HR Business Partnering function 2017 Joined TDK (with the InvenSense acquisition) Head of HR for MEMS Business Group 2023 Assumed responsibilities across Global HR Present Head of HR Business Partnering function for TDK Early Career Career at TDK • Started career at Cisco
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Copyright © TDK Corporation, 2026. 19 High-autonomy Integration to Structured Alignment “RENDO” Driven by Employer Branding Social Media Employer Branding Content Pool Global LinkedIn Life Career Website Local Employer Branding People, stories, photos, videos… Local & Targeted Recruiting Campaigns A single person, team, story, project or photo creates valuable connection to attract top technical talent
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Copyright © TDK Corporation, 2026. 20 Attract Talents FY3/26 Target (FY3/27) Number of Applicants* Growth % 140% + Last Year ⚫ Employer branding communicates our values, impact, and growth opportunities as an employer. ▍ Initiatives to Attract More Candidates Health & Productivity Management Organization Recognition Program (2023-2026) Clarivate Top 100 Global Innovators (the twelfth time) SX Brand (2025, 2026) ▍ KPI Progress To attract more job seekers and engage current team members, TDK started Employer Branding activities. Job Offer Ceremony at the World Athletics Championships Inviting students to the TDK Tokyo E-Prix (Formula E) Global Town Hall meeting online EU/US time zone ▍ Improving external recognition *This applies only to new graduates for generalist positions at TDK Corporation. work with Pride Gold (2024,2025)
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Copyright © TDK Corporation, 2026. 21 100th We Improved the Ranking in Japan and Germany ▍ Top Employer in Germany▍ Ranked 100th in Toyokeizai’s Top Employers Ranking in 2027 Graduates. 273rd 194th 2024 2025 2026 **2026=graduates in March 2027. TDK ranked 100th in Toyokeizai’s “Most Popular Companies Among 2027 Graduates” ranking. Having risen steadily from 273rd in 2024 and 194th in 2025, TDK continues to gain recognition and appeal among students. For the fourth time in a row, TDK was qualified as a Top Employer in Germany. The Top Employers Institute evaluates companies in around 20 HR areas, including People Strategy, Working Environment, Talent Acquisition, Learning, Well-being and Diversity & Inclusion.
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Copyright © TDK Corporation, 2026. 22 “RENDO“Alignment of HR Strategy with Corporate Strategy Management issues As the talent portfolio should be Human Resources Strategy TDK’s Business Model Capability of Management Transformation Strategic Position Constant securing of investment capacity and optimal investment Capability to Envision the Future Capability to Execute Human Resources Transformation Market-In Concept-Out System Module Parts Material TDK Customers First-to- Market Five Pillars of Strategy Execution Threes Key Initiatives Corporate Strategy united with HR Strategy ⚫ Strengthening the talent Who drive the business transformation / Who drive the innovation / Who is capable of AI/Software / Who can provide solution ⚫ Strengthen existing businesses ⚫ Business portfolio transformation Leveraging innovation / Strengthening software technology / Strengthening solution business Attract and Develop Talent Global Leadership Pipeline Organization Capability and Efficiency Team Member Health and Engagement Inclusive Leadership Practices ⚫ Enhancement in Human Capital as a Change Driver ⚫ Strengthening in Value Creation through TDK United ⚫ Advancement in Technical Capability
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Copyright © TDK Corporation, 2026. 23 Systems, Solution and AI Software Capability Innovation happens when we bring different perspectives together and stay curious enough to learn from one another. Global Leadership Pipeline Organization Capability and Efficiency Team Member Health and Engagement Inclusive Leadership Practices Attract and Develop Talent Software Expertise Connecting People Business Adaptability Understanding devices and expanding value through software Cross-functional collaboration across business divisions, driven by customer challenges Understanding applications, security, and regulatory requirements Human Resources Strategy IN ACTION｜Rosa Chow Leverage knowledge across TDK through people and software Three Key Capabilities for Software Talent to Support Growth Strategy
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Copyright © TDK Corporation, 2026. 24 Cutting-edge Technology Development Shuichi Hashiyama, Corporate Officer, CTO and General Manager of the Technology & Intellectual Property HQ
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Shuichi Hashiyama Corporate Officer, CTO,and GM of the Technology & Intellectual Property HQ Career at TDK 1990 Joined TDK; assigned to Technology Group Material R&D Center 1994 Sales & Marketing Group, Electronics Devices Business Group 2001 transferred to TDK Electronics Europe 2019 GM, Energy Systems BG, Energy Solutions BC 2021 Corporate Officer (present post) DGM, Corporate Strategy HQ GM, Corporate Planning Group 2022 GM, Corporate Strategy HQ 2025 Chief Technology Officer (present post) GM, Tech & IP HQ (present post)
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Copyright © TDK Corporation, 2026. 26 Software technology Group’s culture Developing Software Talent for AI Ecosystem Value Creation Expanding products for the AI ecosystem Software Expertise Connecting People Business Adaptability Strengthening talent to underpin software technology Backup power supplies AI server & storage AI data centers SME Optimizing industrial machinary Self-driving systems Humanoid robots AI smartphones Smart glasses HR strategy supporting our growth strategy Understanding devices and expanding value through software Understanding applications, security, and regulatory requirements Cross-functional collaboration across business divisions, driven by customer challenges Software and AI are core capabilities driving our business model transformation. We are securing sustainable growth and creating value through global recruitment, talent development, and organizational structuring.
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Copyright © TDK Corporation, 2026. 27 TDK’s Business Model Strategic Position – Where to playCapability of Management Transformation – How to win Constant securing of investment capacity and optimal investment Capability to Envision the Future Capability to foresight from the long-term (Tech. x Market) Human Resources Transformation Transformation through promoting and cultivating diverse pool of human resources to further enhance competitive advantage System Module Parts Material Capture needs of market/customer to realize First-to-Market TDK Customers First-to-Market Provide solution from conceptual base Market-In Concept-Out HMI Environmental adaptability, ultra-low power consumption and decarbonization Technologies of thermal management, EMC and modularization Miniaturization, lightweight and flexibility Improved reliability, innovation in new raw materials and processes Software/Solution Earning Capability & Investment Capability • Proactive business portfolio management • High level of quality • Optimization of production technology Capability to Execute
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Copyright © TDK Corporation, 2026. 28 M&A Aimed at Providing Solutions for AI Ecosystem Net Sales Jun 2026 Fabric8Labs ⚫ Thermal management components for AIDC using ECAM technology May 2026 Linergy Power ⚫ rechargeable batteries SoftEye ⚫ Eye-tracking technology for smart glasses, etc. Jun 2025 Power business of QEI ⚫ RF power solutions for semiconductor manufacturing Jan 2023 Qeexo ⚫ ML automation Jan 2026 TDK AIsight ⚫ Solutions for smart glasses M&A,etc. New companies Magnets Passive components Magnetic heads Magnetic tapes Batteries Sensors Power supplies Others Jul 2024 TDK SensEI ⚫ edgeAI solutions Aug 2026 Asset of OQmented ⚫ Smart glasses- related technologyMay 2017 InvenSense ⚫ Sensors Mar 2017 ICsense ⚫ ASIC 1970 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Growth Driver
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Copyright © TDK Corporation, 2026. 29 AI Initiatives in Four Domains for Strengthening Solutions AI AI for Market Creation AI for Operational EfficiencyAI for R&D Deploying solutions driven by AI-equipped sensor devices AI-Driven acceleration of materials development: shortening timelines and enhancing R&D productivity Expanding products for the AI ecosystem, focusing on the rapidly growing AI data center market Leveraging the TDK GenAI platform to enhance productivity across the TDK Group initiatives in 4 domains Materials × Process DB AI analysis Upcoming materials HR Sales R&D Sensors Smart glasses Edge AI BBU AI servers & storage AI data centers Optimizing industrial machinery Self-driving systems Humanoid robots AI smartphones Smart glasses SME AI for Value Enhancement
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Copyright © TDK Corporation, 2026. 30 Advancing Materials Development with Materials Informatics (MI) Accelerating new material and product development using our proprietary material × process technologies and "Aim" AI data analysis. Accumulating a wide range of data, from materials and processes to properties and evaluations. Composition Process Microstructures Characteristics In-House MI Analysis Tool Driving new material creation and advanced R&D Proprietary Material & Process Data Outcomes Optimizing materials and processes through AI analysis to create new materials and advanced components. Creation of New Materials and High- Performance Components Data Analysis Image Analysis Object Detection AI Sustainable material design Reduced time for discovering new materials Breaking through performance limits Demand Forecasting Grain Analysis
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Copyright © TDK Corporation, 2026. 31 Strengthening the Technology Portfolio Supporting the AI Ecosystem Physical AI Robotics TDK’s Technology Portfolio In-house technologies Technologies acquired through M&A, etc. Neuromorphic devices Reservoir computing Spin photodetector FCLM Full Color Laser Module Consumer Industry AI Feedback from the Physical World AI Data Centers Low power consumption High-speed networks Cooling technology Sensors Smart glasses Edge AI Photoelectric conversion Machine learning Thermal management QD Laser Retinal projection Eye-tracking Fabric8LabsSoftEye Qeexo（TDK SensEI） Application & Deployment of AI Technology Retina Laser
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Jim Tran Corporate Officer, GM of the Americas HQ, DGM of the Tech & IP HQ, and GM of the Americas R&D Center and Tech & IP HQ Early Career Career at TDK • Started career at Boeing • Engineer/Manager at SONY • Vice President at Broadcom • Senior Vice President at Qualcomm 2021 Joined the TDK Group GM, Americas HQ (present post) 2022 Corporate Officer (present post) 2023 DGM, Tech & IP HQ（present post） 2024 GM, Americas R&D Center, Tech & IP HQ (present post)
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Copyright © TDK Corporation, 2026. 33 Storing and stabilizing electricity Storing electricity Measuring angles Sensing current Supports autofocus and image stabilization Accurately recognizing voice Detecting motion Contribution to Physical AI Physical AI Product Growth 2026 Grandview Physical AI Market 0 100 200 300 400 500 600 700 800 2021 2033 $213.8B 153.2 95.9 55.8 79.3 75 30.6 Robotics Systems $960.4B $24.3B Others AI-enabled Smart Cameras Machine Vision Systems Edge AI Devices Smart Glasses & AR/VR Wearables Drones & Unmanned Systems Autonomous Vehicles CAGR 36% Physical AI Robotics Sensors Smart glasses Edge AI AI Physical AI will boost demand for TDK components. TDK aims to expand its solution business in Physical AI.
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Copyright © TDK Corporation, 2026. 34 Growth Strategy for SensEI ▍ Market size of predictive maintenance▍ Business strategy *AWS= Amazon Web Services, Inc. **CbM = Condition Based Maintenance ***PdM = Predictive Maintenance Partnership with and integration of AWS IoT tools and secure cloud services into TDK SensEI’s edgeRX platform advances beyond CbM** to unlock additional value through PdM*** and Autonomous Prescriptive Maintenance via edgeRX Agents AI ⚫ Complete Solutions: HW + SW + Cloud + Edge AI ⚫ Hybrid Edge + Cloud AI unlocks additional value ⚫ Multiple sensor types (Vibration, Temperature, Magnetometer, Motion, Sound, Images) ⚫ Advances beyond CbM** to PdM*** + Autonomous Prescriptive Maintenance ⚫ Cloud light ⚫ Sensor device with higher intelligence ⚫ Multiple function sensors not only vibration & temperature ⚫ Agility ⚫ Manufacturing capability 0 10 20 30 40 50 60 70 2024 2030 (US$ bn) CAGR 35% Source: Markets & Markets PdM 2024 ▍ Requirement from market
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Copyright © TDK Corporation, 2026. 35 Intelligence: Low Limited ML / ISO / Threshold Ease of Deployment: Simple Automated Processes Intelligence: High ML – Multi-Class Ease of Deployment: Difficult Labor Intensive Cloud-Based Solutions • Complete System: HW + SW + Edge AI • Multi-Class Anomaly Detection • AI Executed on Sensor Device • Multiple Sensor Types • Low Touch Deployment PRIMARY Market • Sensor Device w/ Limited Intelligence • Mostly Vibration & Temperature Based • Usually Built Around a Defined Asset TDK SensEI Cloud AI Market Market Landscape TDK SensEI’s edgeRX platform is an easy-to-deploy, intelligent edge AI solution because it combines hardware, software, and AI models into a single all-in-one platform that runs directly on edge devices AI
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Copyright © TDK Corporation, 2026. 36 Reduce Costs Continuously monitor machines and product to identify problems before costs escalate. Maximize Uptime & Throughput Maximize machine uptime and maintain high product throughput by predicting and preventing issues with AI. AI Powered Visibility Monitor machines and products from anywhere to optimize industrial operations. Industrial Health Monitoring for Machines & Products Offers an Edge AI platform, complete with the tools, services, expertise, and systems to transform industrial operations. – Reducing Costs, Maximizing Uptime & throughput, AI Powered Visibility AI
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Copyright © TDK Corporation, 2026. 37 Growth Strategy for Smart Glasses Business ▍ Market size and growth rate of smart glasses ▍ Requirement from market ⚫ Usability - low power enables all day battery life ⚫ Comfort – smaller battery enables smaller & lighter form factors ⚫ Fashionable – smaller & lighter form factors enable fashionable designs ⚫ Scalable – retinal projection requires no modification to prescription lens ⚫ TDK addressed eye-intent/tracking solution by acquiring SoftEye technology. ⚫ Establishment of AR Platforms BD. ⚫ We combine our custom chips and software with TDK components efficiently. This platforms will showcase AI Glasses user experiences that customers can commercialize and scale effectively. ⚫ FCLM, MEMS mirror, Micro actuator, Battery tech, IMU, Mic are key to an “Smart glasses Solution.” ⚫ TDK plans to provide an “AR Engine” with display controller + hub & lite app processing in about two year. ▍ Business strategy 0 10 20 30 40 50 60 2024 2030 Unit: million pieces CAGR 39% By acquiring SoftEye and establishing AR platforms BD, we aim to expand our product lineup and pursue growth. Source: BofA AI
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Copyright © TDK Corporation, 2026. 38 • From moments to contextual events "Parking lot: car in B3 03“ “Location: Entered espresso bar” "Social: met Peter“ "Cafe: espresso for 30 min" • From memory to assistance Extended memory: "Who did I meet at last year’s CES?“ Insight: “Evaluate my eating habit” Personalized Agent “Book a dinner place I’d like.” Context Aware Data CaptureKey moment detection by sensor fusion • Eye camera: User’s intent or interest • Contextual Sensor: Detects objects • AI DSP*: Efficient CNN** processor • Hi-Res camera: Detailed data on RoI • IMU: Head position, motion, gesture • Mic: Ambient sounds, voice / Command Car parked At building On street Enter cafe Drink coffee Meet person Days and Years of data Personalized Memory Seamless Input Technology *DSP = Digital Signal Processor **CNN = Convolutional Neural Network Context Awareness is Key to Personalized AI AI
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Copyright © TDK Corporation, 2026. 39 Look at face to recall person and conversation Gaze at UI to answer call Look + Finger pointing to look up a word 2s Glance down to see the map Look + Finger pointing to get object info Cabagin Kowa is a popular Japanese stomach medicine for gastric relief and mucosal repair. Look at biz card to store contact This is Jamie Solution for Seamless User Interactions Intuitive Interactions with Display & Audio AI
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Copyright © TDK Corporation, 2026. 40 Growth Strategy for SensorGPTTM ▍ Requirement from market ▍ Solution Benefits ⚫ Scalable – must be able to support a large portfolio of different sensors ⚫ Sensor Agnostic – data should work amongst all major manufacturers ⚫ Financial Benefits – must be able to do “more” for “less” then current data collection procedures ⚫ Usability – UX must be easy to navigate and implement Synthetic data generation fueling the future of Physical AI ▍ Physical AI Market (Software) Source: Grand View Research – Physical AI market 2026 ⚫ 80% effort to create an AI application is spent on data collection and curation ⚫ Reduces the need for a fleet of data collection engineers ⚫ Significantly increase scale of available data ⚫ Reduces real data needed for ML models down to 20% 0 50 100 150 200 250 300 350 400 2021 2025 2033 USD (Bn) CAGR 38% AI
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Copyright © TDK Corporation, 2026. 41 Growth Strategy for Advanced Metal 3D Printing Technology （Electro-chemical Additive Manufacturing; ECAM） ▍ Market size of Data center liquid cooling ▍ Application Cases ⚫ TDK to drive mass production of proprietary ECAM technology through acquisition of US-based Fabric8Labs. ⚫ Enter Thermal Management Solution Business, leverage TDK’s manufacturing capabilities to scale. ⚫ Integrate ECAM technology to unlock new potential in Electronic Components and strengthen TDK’s product differentiation. Source: TDK estimate ▍ Business strategy ▍ Future market potential 2023 25 28 30 2035 0.7 1.6 6.2 14.3 27.7 45-50% p.a. Unit：$B Source: TDK estimate Rack-level Server tray Cold-plate Inlet port Baseplate MicrochannelsCold plates Water tubing Insert (microchannel core) CDU Hot/Cold manifold Outlet port Insert Examples of target products Plan to enter Data Center thermal management market after closing of Fabric8Labs acquisition (subject to customary closing conditions, including regulatory clearances); exploring applications for passive components. AI
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Copyright © TDK Corporation, 2026. 42 Closing Remarks From the President & CEO to Our Investors Noboru Saito, President & CEO
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Copyright © TDK Corporation, 2026. 43 Accelerate and Strengthen Long-term Investments in Growth Areas R&D expenses Shareholder returns Strategic investment CAPEX CVC investment OCF R&D investment Value creation chain of TDK CVCBusiness Division Sales & Marketing R&D Incubation Customers Concept-OutMarket-In Strengthening both profitability and R&D investments for a sustainable growth. Cross-organizational technology and product development Future Ferrite Tree Respect Diversity-TDK United Functional Equality Unique Culture 03 Inorganic growth With market-in and concept-out approaches, we strengthen the capabilities of the value creation chain of TDK.
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Copyright © TDK Corporation, 2026. 44 RENDO(連動) Past Future RENDO Corporate Strategy HR Strategy Financial Pre- Financial Stakeholders RENDO with Interorganizational Organization RENDO of The “Three Forms of RENDO = United” that form the core of enhancing corporate value “Uniting Internal and External Parties = United” A Unique Organizational Culture as the Driver of “RENDO”=“United” TDK Venture Spirit Respect diversity TDK United Functional Equality United RENDO RENDO * RENDO(連動) is a Japanese word that roughly translates as alignment. It refers to the deepening of the alignment among various organizational activities.Conclusion