Future Management Policies

Shoichi Tosaka President and Chief Executive Officer

May 11, 2016

Our Vision

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To be an excellent company that enjoys the trust and highest regard from our customers.

Smart Product

High Quality

Safety First Follow Rules

Abolition of Prohibited

Substances

Reuse Recycle

Efficient Energy Usage

100% Yield Minimization of Waste

Smart Product

Smart Process

System

Low Energy Consumption Down Sizing

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IoT market predicted to grow explosively.

2010 2020 2030 2040 year

20B 100B

20T

50T

2010 2020 2030 2040 year

12.5B 50B

10T

Estimated by our company based on Cisco IBSG’s prediction

Automotive market: ¥18 trillion (CY2012) ⇒ ¥30 trillion (CY2020)

Infotainment: 1.7 times

Body: 1.6 times

Safety: 1.9 times

Power-train: 1.7 times

Computerization and energy are the key to the automotive electronics market.

• Rapid growth of electric and fuel-cell vehicles. • Increasing demand for large-size, high voltage

resistant, and highly-reliable components.

Sensors Devices

connected to the internet Increase in the

demand for ultra-small high-Q components

Foreseeable Near Future of Electronics Markets

Estimated by our company based on TSENSORS SUMMIT’s prediction

Estimated by our company based on JEITA’s prediction (2013)

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Small

Large

Change the business model to establish a more profitable business structure. Profit

Material

Component Modularization

Software

Assembly

Provide solutions and after-sales services

Mounting

Outgrow simple circuit/mounting business. Create new business by providing solutions.

Capture the growing market by providing super high-end products and highly-reliable products. Capacitors, Inductors, Communication devices

Future Direction of Our Business

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Future Direction of Capacitor Business

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Multilayer type Marketing new large wire-wound coil products

Thin-film hybrid type 008004 size

Ultra-small, ultra-thin, high-frequency components

Small size, large current

High reliability

Wire-wound type High reliability products

Multilayer type EIA0201/0402 size

Wire-wound type Common mode choke coils

Large size, large current

Small, wire-wound type

Strengthen the line-up with more sophisticated material and process technologies.

Thin-film hybrid type Common mode choke coils

Ferrite material, etc

Communication (IoT、ICT) Automobiles/ industrial equipment

Metallic m

aterial

Future Direction of Inductor Business

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Points of differenciation Optimally commercialize various technologies to support all bands. Supply ultra-small high-frequency capacitors and inductors as a set. Commercialize the World’s smallest FBAR/SAW hybrid duplexers.

CA化、多ﾊﾞﾝﾄﾞ化

～CY2014 CY2015 CY2016～ 4G LTE

LTE-Advanced (CA/MIMO)

Band expansion (～5GHz LAA) Carrier aggregation and multi-band

High frequency and narrow adjacent bandwidth 5

G B17,13,20,5,18,8 B11,21,3,9,39,25,2 B4,34,1,40,41,38,7,42,43 ～1GHz 2GHz 3GHz～

Accelerate the marketing of automotive products with high reliability, for millimeter wave band, etc.

TC-SAW+TC-SAW Dup. FBAR+TC-SAW Dup.

Future Direction of Communication Device Business

Dielectric multilayer filters

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Integrating technology

System solution proposals combining

core technologies

High-resolution earphone

haptic technology

PV monitoring

Power-assisted regeneration

Energy Actuator (Multilayer piezoelectric materials)

Sensor + MRLD Optical displacement sensor

Piezoelectric pressure wave sensor

Sensor

Screen, metal mask etc.

Multi functional fine surface coating

Cylinder type lithium ion capacitors Laminate-type lithium ion capacitors

LITHOSION™

Optics technology

Multilayer technology

Surface treating technology

Power source technology

Wireless technology

New Business Development by Providing Solutions

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Respond to growing markets. • Continue investment to enhance the performance of our super

high-end and high reliability products. • Accelerate the innovation in production method.

Make investment in IoT for production process and analyze big data.

• Further enhance our manufacturing strength.

Continuing Investment in Facilities

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Aim for 30% total return ratio

FYE March 2016 15 yen annual dividend（interim: 5 yen, year-end: 10 yen)

FYE March 2017 (planned) 20 yen annual dividend（interim: 10 yen, year-end: 10 yen)

Dividend Policy

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This document contains information about the plans, business results, and strategies of TAIYO YUDEN CO.,

LTD. and the TAIYO YUDEN Group. These forward-looking statements other than historical facts represent

judgments made by the Company based on information available at present and are inherently subject to a

variety of uncertainties. TAIYO YUDEN cannot provide any guarantee as to the attainment of certain figures in

the future. The Company’s actual activities and business results could differ significantly due to changes

including, but not limited to, changes in the electronics market in which the Company’s business activities are

centered. Readers should not overly rely on the information contained in this document.

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