TOKYO ELECTRON ANNUAL REPORT 2020

PAGE

3CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Review of Operations
and Business Outlook

Interview with the CEO

Financial Section
Investor Information

Corporate GovernanceBusiness Overview and Financial Highlights

Business Overview and Financial Highlights

Semiconductor Production Equipment
P Coater/Developer

P Cleaning System

P Etch System

P Wafer Prober

FPD Production Equipment
Sales by Region

Semiconductor devices are broadly used in mobile devices, such as smartphones
and tablets, as well as the data centers that are indispensable for the processingof big data. With the adoption of IoT, AI and 5G, as well as the growing use of
remote work arrangements, distance learning and remote medicine, the semiconductor market is expected to expand. Tokyo Electron provides a wide rangeof semiconductor production equipment used to manufacture such semiconductors along with reliable technical support and service. The main categories ofour product lineup are coater/developers, etch systems, deposition systems andcleaning systems used in wafer processing as well as wafer probers used in thewafer testing process. In addition, we also offer such products as wafer bonders/debonders used in advanced packaging processes.
Coater/Developer
CLEAN TRACK™
LITHIUS Pro™ Z

Plasma Etch System
Tactras™

Net Sales and Gross Profit Margin

1,600

40.2

40.3

42.0

41.2

1,130.7800(%)(Billions of yen)

44

320

40.1

1,278.2

1,200

ALD System
NT333™

Single Wafer
Deposition System
Triase +™

Operating Income andOperating Margin(Billions of yen)

1,127.2

24.9
33

17.6
22799.7

240

160

663.9

19.5

310.5
24.3

(Billions of yen)

280

21210

14155.600000Net Sales

Gross Profit Margin

204.3

17

Operating Income181920

Operating Margin248.2

19.4%

16

FPD Coater/Developer
Exceliner™

FPD Plasma Etch/Ash SystemBetelex™

Free Cash Flow

17(%)

(Billions of yen)

32

200

24150

16100

199.5

139.7

149.5

Cash Dividends per Share

(Yen)

(Yen)

1,600

800

1,513.58

19

China

84.1%

1,245.48

1,200

1,170.57

758
624

600

588

118.0
400

800

352

702.2618

15.9%

Inkjet Printing System for
Manufacturing OLED Display
Elius™

Net Income per Share

115.2

77.9

Others

24.2%

21.8
185.2

13.0
70

16

18.3%

30.1

140

7

20

China

Flat panel displays (FPDs) are an essential part of everyday life, employed in suchproducts as TVs, smartphones and tablets. Going forward, applications for FPDs
are expected to expand even further with the adoption of flexible displays andhigher resolution OLED displays. Tokyo Electron supplies coater/developers andetch/ash systems for manufacturing FPDs along with solid technical supportand service. We also offer inkjet printing systems for manufacturing OLED
­displays to take advantage of the expanding OLED display market.

Wafer Prober
Precio™ XL

19.1

237.2

80

1915.0%

Taiwan

29.0
21.0

281.1

(%)

1118JapanNorthAmerica

Single Wafer
Cleaning System
CELLESTA™ -i28

116.8

17P Inkjet Printing System for Manufacturing OLED Display

Net Income Attributable to Ownersof Parent and ROE

40016P FPD Etch/Ash SystemEurope

3.3%
5.5%
South Korea 14.3%

P Deposition System

Sales by Region

P FPD Coater/Developer

Southeast Asia

8500020Net Income Attributable to Owners of ParentROE

The amounts in this report in billions, millions and thousands of yen; thousands of U.S. dollars; and thousands of shares as of and for the years ended March 31, 2016 and prior are rounded to the nearest unit.
Such amounts as of and for the years ended March 31, 2017 and onward, including year-on-year differences, are truncated at the nearest unit. Accordingly, totals for the years ended March 31, 2017 and onward
do not necessarily agree with the sum of the corresponding individual amounts.

60.4

400 461.10

20001617181920

Free cash flow = Cash flows from operating activities + Cash flows
from investing activities (excluding changes in short-term investments)

237

01617181920

1617181920