Grenoble, France and Dallas, TX, USA – November 6, 2020 - Tronics, a TDK Group Company that manufactures custom MEMS products and standard inertial sensors for industrial applications, has announced its revenue for first half of fiscal year 2021 (from April 1 to September 30, 2020). Consolidated revenue increased by 27% compared to the same period of last year.

CONSOLIDATED REVENUE FOR THE FIRST HALF OF FISCAL YEAR 2021

Revenue for the first half of fiscal year 2021 totalled more than €3.8M, a significant increase compared with the same period of last fiscal year (from April 1 to September 30, 2019), driven by the growth of the manufacturing activities.

The Group's manufacturing activities generated revenue of €3.1M, an increase of +50% compared to the same period of last year. The growth has been strongly supported by production activities in Crolles, France, which increased by +57% over the same period. This momentum has been sustained by a growing demand for Tronics' high performance MEMS inertial sensors, and by the activities related to custom MEMS products for industrial applications. Nowadays, manufacturing activities account for 81% of Tronics' revenue, in line with the Company's strategy, which has made this activity its main growth priority.

Engineering activities, dedicated to the development and the industrialization of future customized MEMS products at Group level, accounted for €0.7M in the first half of fiscal year 2021 (versus €1.0M in the first half of fiscal year 2020).

Moreover, over the last six months of fiscal year 2021, revenue of the American subsidiary was up, reaching USD 0.7M versus USD 0.5M over the same period of previous fiscal year, thus confirming the gradual recovery of the new production unit in Dallas. The American subsidiary accounts for more than 15% of total Group's revenue, similar to last fiscal year.

OUTLOOK

Given the increased revenue over the first half of fiscal year 2021, Tronics expects an improvement of its recurring operating income for first semester of this fiscal year (which was minus €3.8M in the first half of the previous fiscal year 2020). The net income of the group is also expected to improve.

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About Tronics Microsystems

Tronics Microsystems is a division of TDK's Temperature & Pressure Sensors Business Group that manufactures custom MEMS products and standard inertial sensors. Addressing high-growth markets relying on increasing miniaturization of electronic devices, the company provides custom and standard products especially to the industrial, aeronautics, security, and medical markets. Founded in 1997, Tronics is located in Crolles, near Grenoble (France) and in Dallas, Texas (United States), and has around 100 employees, most of them engineers and scientists. Following a tender offer ending January 2017, TDK Electronics AG (formerly EPCOS AG) now holds 74 percent of Tronics' shares.

* ISIN code: FR0004175099 ALTRO

About TDK Corporation

TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately “Attracting Tomorrow.” It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's comprehensive, innovation driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in the areas of information and communication technology and automotive, industrial and consumer electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2020, TDK posted total sales of USD 12.5 billion and employed about 107,000 people worldwide.