TOKYO ELECTRON

Summary of Consolidated Financial Results for the First Quarter Ended June 30, 2018
July 26, 2018
(Japanese GAAP)
Name of Listed Company:
Security Code:
URL:
Representative:
Contact:

Tokyo Electron Limited
8035
http://www.tel.com
Toshiki Kawai, Representative Director, President & CEO
Ken Sasagawa, Vice President of Accounting Dept.
Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly earnings release conference: Yes (for investors and analysts)

Stock Exchange Listing: Tokyo

Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Three Months Ended June 30, 2018 (April 1, 2018 to June 30, 2018)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Three months ended
June 30, 2017

June 30, 2018%%

Net sales (Millions of yen)

236,39659.8

295,569

25.0

Operating income (Millions of yen)

54,790148.072,41832.2

Ordinary income (Millions of yen)

55,149129.0

75,21236.4

Net income attributable to owners of parent (Millions of yen)

41,252225.2

55,741

35.1

Net income per share of common stock (Yen):
Basic
DilutedComprehensive income:251.42339.65250.65338.34Three months ended June 30, 2018 : 54,152 million yen, 22.9%
Three months ended June 30, 2017 : 44,059 million yen, - %(2) Consolidated Financial Position
As ofMarch 31, 2018
Total assets (Millions of yen)
Total net assets (Millions of yen)

1,185,050

771,509772,332

63.8

64.5

Equity ratio (%)
Equity:June 30, 2018

1,202,796

764,352 million yen (as of June 30, 2018)
767,146 million yen (as of March 31, 2018)

2. Dividends
Year ended

Year ending

March 31, 2018

March 31, 2019
(Forecast)

1Q-end dividends per share (Yen)--

2Q-end dividends per share (Yen)

277.00390.00--Year-end dividends per share (Yen)

347.00433.00

Annual dividends per share (Yen)

624.00823.003Q-end dividends per share (Yen)

Note: Revision to the dividends forecast most recently announced: None

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TOKYO ELECTRON

3.   Financial Forecasts for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)
Note: Percentages for year ending March 31, 2019 indicate changes from the previous fiscal year, and those for six months ending
September 30, 2018 indicate changes from the same period of the previous fiscal year.
Six months ending

Year ending

September 30, 2018

March 31, 2019

(Cumulative)%%

Net sales (Millions of yen)

690,000

33.5

1,400,000

23.8

Operating income (Millions of yen)

173,000

40.3

366,000

30.2

Ordinary income (Millions of yen)

173,000

40.6

366,000

30.4

Net income attributable to owners of parent (Millions of yen)

128,000

41.2

270,000

32.1

Net income per share (Yen)779.95

1,645.20

Note: Revision to the financial forecasts most recently announced: None

Notes
(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): None

(2) Adoption of special accounting methods for preparation of quarterly financial statements: Yes
Please refer to "Notes" on page 11 for further information.

(3) Changes in accounting policies, changes in accounting estimates and restatements
1. Changes in accounting policies along with changes in accounting standards: None
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None

(4) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of June 30, 2018 :

165,210,911 shares

As of March 31, 2018:

165,210,911 shares

2. Number of shares of treasury stock
As of June 30, 2018 :1,096,874 shares

As of March 31, 2018:

1,097,342 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Three months ended June 30, 2018:

164,113,708 shares

Three months ended June 30, 2017:

164,076,929 shares* Status of implementation of quarterly review proceduresThis Summary of Consolidated Financial Results is outside the scope of external auditor's quarterly review procedures
under the Financial Instruments and Exchange Act.

* Explanation of the appropriate use of financial forecast:
The financial forecasts and estimates in this Summary of Consolidated Financial Results are based on information available to
the Company at the time of report issuance and certain assumptions judged to be reasonable by the Company, and therefore
are not guarantees of future performance. Consequently, actual results may differ substantially from those described in thisSummary of Consolidated Financial Results. Please refer to "1. Qualitative Information on Financial Results for the Current
Quarter (3) Description of Financial Estimates Information such as Consolidated Financial Forecasts" on page 6.
The Company plans to hold an earnings release conference for investors and analysts on July 26, 2018. Supplementary materials
to be handed out at the conference will be posted simultaneously on the Company's website.

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TOKYO ELECTRON

1. Qualitative Information on Financial Results for the Current Quarter(1) Description of Operating Results
In the first quarter of the current fiscal year, the global economy including Europe and China remained strong, with acontinued robust economy in the U.S.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, market conditions for semiconductors
and electronic components were favorable, with continued capital investment in data centers backed by a dramaticincrease in global data traffic with the advent of the IoT era.
Under these circumstances, the consolidated financial results (cumulative) for the first quarter of the current fiscal
year were net sales of 295,569 million yen (year-on-year growth of 25.0%), operating income of 72,418 million yen(year-on-year growth of 32.2%), ordinary income of 75,212 million yen (year-on-year growth of 36.4%) and net
income attributable to owners of parent of 55,741 million yen (year-on-year growth of 35.1%).

The overview of each business segment is as described below.

(i) Semiconductor Production Equipment
The semiconductor production equipment market was robust, with capital investment by semiconductor
manufacturers continuing in areas such as DRAM, 3D NAND flash memory and logic semiconductors driven by
demand for data centers. Consequently, net sales to external customers in this segment for the first quarter of thecurrent fiscal year were 280,400 million yen (year-on-year growth of 26.3%).

(ii) Flat Panel Display (FPD) Production Equipment
The FPD production equipment market was robust, with large-scale capital investment for large-sized LCD panels
used for televisions in China in addition to continued capital investment for small to medium-sized OLED panels for
smartphones. Consequently, net sales to external customers in this segment for the first quarter of the current fiscal
year were 15,113 million yen (year-on-year growth of 5.5%).

(iii) Other
Net sales to external customers in this segment for the first quarter of the current fiscal year were 55 million yen(year-on-year decrease of 46.9%).

3

TOKYO ELECTRON(For reference)

Consolidated Operating Results

Net Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia
FPD Production Equipment
Other
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent(Millions of yen)
FY 2018
Full Year

1Q

2Q

3Q

4Q

1,130,728
1,055,234
145,507
119,243
96,940371,946
169,063
104,322
48,21075,068425
281,172
280,737
204,371

236,396
221,969
26,77624,09725,382
68,37545,89726,757
4,683
14,323104
54,79055,14941,252

280,580
265,773
38,46832,077
26,931
101,790
36,646
23,073
6,786
14,701
104
68,527
67,91749,415

257,773
241,41135,112
29,121
19,621
79,47942,15522,64813,271
16,26497
58,09257,36040,715355,977
326,079
45,15033,94625,005
122,301
44,364
31,842
23,46829,779118
99,761
100,31172,986

FY 2019
1Q
295,569
280,400
51,14628,496
17,75588,98626,31554,964
12,734
15,11355
72,41875,21255,741

Note: Intersegment sales or transfers are eliminated.

(2) Description of Financial Conditions(i) Financial Conditions
Current assets at the end of the first quarter of the current fiscal year were 917,319 million yen, a decrease of 29,277
million yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 67,000 million yen
in short-term investments included in securities, a decrease of 42,450 million yen in prepaid consumption tax, anincrease of 48,710 million yen in cash and deposits, and an increase of 37,535 million yen in inventories.
Tangible fixed assets increased by 5,343 million yen from the end of the previous fiscal year, to 131,296 million yen.
Intangible fixed assets increased by 1,410 million yen from the end of the previous fiscal year, to 17,292 million yen.
Investments and other assets increased by 4,776 million yen from the end of the previous fiscal year, to 119,141
million yen.
As a result, total assets decreased by 17,746 million yen from the end of the previous fiscal year, to 1,185,050 million
yen.
Current liabilities decreased by 17,962 million yen compared to the end of the previous fiscal year, to 350,490 million
yen. This was largely due to a 40,594 million yen decrease in income taxes payable, a 17,369 million yen decrease inaccrued employees’ bonuses, and a 39,439 million yen increase in customer advances.
Long-term liabilities decreased by 606 million yen from the end of the previous fiscal year, to 62,227 million yen.
Net assets increased by 822 million yen from the end of the previous fiscal year, to 772,332 million yen. This waslargely due to an increase of 55,741 million yen in net income attributable to owners of parent and an increase of
3,617 million yen in share subscription rights, and a decrease resulting from the payment of 56,947 million yen in
year-end dividends for the previous fiscal year and a decrease of 1,589 million yen in accumulated othercomprehensive income. As a result, the equity ratio was 64.5%.

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TOKYO ELECTRON

The above comparisons to the previous fiscal year are made on the condition that "Partial Amendments to
Accounting Standard for Tax Effect Accounting" (ASBJ Statement No. 28, February 16, 2018) was adopted from the
beginning of the first quarter of this fiscal year, and such amendments was also retrospectively applied to thebalances as of the end of previous fiscal year.

(ii) Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year decreased by 27,289 million yen
compared to the end of the previous fiscal year, to 230,588 million yen. The combined balance including 125,000
million yen in time deposits and short-term investments with maturities of more than three months that are notincluded in cash and cash equivalents was 355,588 million yen, a decrease of 18,289 million yen from the end of theprevious fiscal year. The overall situation regarding cash flows during the first quarter of the current fiscal year was as
described below.
Cash flows from operating activities were positive 51,470 million yen, an increase of 27,007 million yen compared tothe same period of the previous fiscal year. The major positive factors were 75,205 million yen in income before
income taxes, a 42,431 million yen decrease in prepaid consumption tax, a 39,950 million yen increase in customer
advances, and an 8,403 million yen decrease in trade notes and accounts receivable. The major negative factors
were 59,924 million yen in payment of income taxes, a 37,454 million yen increase in inventories, and a 17,480
million yen decrease in accrued employees’ bonuses.
Cash flows from investing activities were negative 21,153 million yen compared to positive 15,692 million yen in thesame period of the previous fiscal year. The main factors were payments of 10,767 million yen for the purchase of
fixed assets and 9,000 million yen associated with an increase in time deposits and short-term investments.
Cash flows from financing activities were negative 56,948 million yen, compared to negative 36,800 million yen in thesame period of the previous fiscal year. This was mainly due to the payment of 56,947 million yen in dividends.

Consolidated Statements of Cash Flows (Summary)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable
Other, net
Cash flows from investing activities
Decrease (increase) in time deposits and short-term investments
Other (Acquisition of fixed assets)
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

Three month ended
June 30, 2017

(Millions of yen)Three month ended
June 30, 201824,46355,147
4,243(5,719)(28,814)(95)(298)
15,69225,000(9,307)(36,800)
946

51,47075,205
5,078
8,403(37,454)(7,929)8,166(21,153)(9,000)(12,153)(56,948)
(657)

4,301

(27,289)

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

164,366
168,668

257,877
230,588

Cash and cash equivalents, time deposits and short-term investments with maturities ofmore than three months

294,668

355,588

5

TOKYO ELECTRON(3) Description of Financial Estimates Information such as Consolidated Financial Forecasts
There are no changes in the consolidated financial forecast for the fiscal year ending March 31, 2019 from theforecasts released at the time of the previous announcement on April 25, 2018.

Note: The financial forecasts and estimates stated in this Summary of Consolidated Financial Results are based on certain assumptions
judged to be reasonable by the Company in light of information currently available concerning economic conditions in Japan and overseas,fluctuations in foreign exchange rates, and other factors that may have an impact on performance. The company does not promise that theforecasts or estimates will be accurate.
They are therefore susceptible to the impact of many uncertainties, including market conditions, competition, the launching of new products(and their success or failure), and global conditions in the semiconductor related industry. Consequently, actual sales and profits may differ
substantially from the projections those described in this Summary of Consolidated Financial Results.

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TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2018

June 30, 2018ASSETS
Current assets
Cash and deposits

87,377136,088

Trade notes and accounts receivable

159,570

151,363

Securities

286,500

219,500

Merchandise and finished goods

220,497

255,658

Work in process

75,504

71,221

Raw materials and supplies

48,06954,726

Others69,13728,855(59)(94)

946,597

917,319

125,952

131,296

Others

15,882

17,292

Total intangible fixed assets

15,882

17,292

115,786

120,568(1,422)(1,427)

Allowance for doubtful accounts
Total current assets
Long-term assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total long-term assets
Total assets

7

114,364

119,141

256,199

267,730

1,202,796

1,185,050

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2018

June 30, 2018

LIABILITIESCurrent liabilities
Trade notes and accounts payable

108,607

100,376

Income taxes payable

66,04625,451

Accrued employees’ bonuses

34,467

17,097

Accrued warranty expenses

11,284

12,470

Other allowances

4,618

1,437

Customer advances

100,208

139,648

Others43,21854,008

Total current liabilities

368,452

350,490

Long-term liabilities
Other allowances

374

374

Net defined benefit liabilities

59,30959,024

Others

3,150

2,827

Total long-term liabilities

62,83462,227431,287

412,718

54,961

54,961

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,01178,011Retained earnings

625,390624,182

Treasury stock, at cost

(7,518)(7,515)

Total shareholders' equity

750,843

749,639

Net unrealized gains (losses) on investment securities

17,134

15,119Net deferred gains (losses) on hedging instruments

278

(101)

Foreign currency translation adjustments

5,507

5,779

Accumulated remeasurements of defined benefit plans(6,618)(6,084)

Total accumulated other comprehensive income (loss)

16,302

14,712

4,363

7,980

771,509772,332

1,202,796

1,185,050

Accumulated other comprehensive income

Share subscription rights
Total net assets
Total liabilities and net assets

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TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)Three months ended

Three months ended

June 30, 2017

June 30, 2018

Net sales

236,396295,569

Cost of sales

139,244

173,085

Gross profit

97,152

122,483

Research and development expenses

21,187

26,131Others21,17323,933

Total selling, general and administrative expenses

42,36150,06554,79072,418-

1,891

Others800

935

Total non-operating income

800

2,826

Maintenance and operation costs of closed facilities

19

12

Foreign exchange loss

412-

Others10

19

Total non-operating expenses

441

32

55,14975,212Gain on sales of fixed assets

46

0Total unusual or infrequent profit

46

0

47

7

Selling, general & administrative expenses

Operating income
Non-operating income
Foreign exchange gain

Non-operating expenses

Ordinary income
Unusual or infrequent profit

Unusual or infrequent loss
Loss on disposal and sales of fixed assets
Others0-

Total unusual or infrequent loss

47

7

Income before income taxes

55,14775,205

Income taxes

13,88019,463

Net income

41,26755,741

Net income attributable to non-controlling interests
Net income attributable to owners of parent

9

14

-

41,25255,741

TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Three months ended

Three months ended

June 30, 2017

June 30, 2018

41,26755,741

1,908(2,008)Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities

(23)

(347)

Foreign currency translation adjustments

Net deferred gains (losses) on hedging instruments

1,123

243

Remeasurements of defined benefit plans

(183)

519

Share of other comprehensive income of associates
accounted for using the equity method

(33)

2

2,791

(1,589)44,05954,15244,04554,152

13-

Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

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TOKYO ELECTRON

Notes
Going concern: None
Significant changes in Shareholders' Equity: None
Changes in significant subsidiaries during the period: None
Adoption of special accounting methods for preparation of quarterly financial statements: Yes
The company and a part of its consolidated subsidiaries calculate tax expenses by reasonably estimating the annual effective tax rate on
income before income taxes after the application of tax effect accounting for the fiscal year, and applying this rate to income before income
taxes for the current quarter under review.
Changes in accounting policies, changes in accounting estimates and restatements: None
Additional information"Partial Amendments to Accounting Standard for Tax Effect Accounting" (ASBJ Statement No. 28, February 16, 2018) was adopted
from the beginning of the first quarter of this fiscal year. As a result, deferred tax assets are classified as "Investments and other assets"
and deferred tax liabilities are classified as "Long term liabilities" respectively.

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TOKYO ELECTRON

Segment information(i) General information about reportable segments
A reportable segment is a component or an aggregated component of TEL Group. For each of the components, discrete financial
information is available and the operating result is regularly reviewed by management to make decisions about resources to beallocated to the segment and assess its performance.
The operation of TEL Group consists of segments by products and services based on business units (BUs), and TEL Groupidentifies as a reportable segment, "semiconductor production equipment (SPE)" and "flat panel display (FPD) production equipment".
Products of the SPE segment consist of coater/developers, etch systems, deposition systems, cleaning systems, wafer probers usedin the wafer testing process and other semiconductor production equipment. The SPE segment principally develops, manufactures,
sells such products and provide services on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture offlat panel displays. The FPD production equipment segment principally develops, manufactures, sells such products and provide serviceson them.
(ii) Net sales and profit or loss in reportable segments
Three months ended June 30, 2018 (April 1, 2018 to June 30, 2018)(Millions of yen)

Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

Others *1

Total

Net sales

280,400

15,1135,041

300,555

Segment profit (loss)

78,3662,446

880,821

Adjustments *2

Consolidated *3

Net sales(4,985)295,569

Segment profit (loss)(5,616)75,205

Notes:*1. "Others" includes all other operating segments which are not included in the reportable segments, including group-wide logistic
services, facility maintenance and insurance.
*2. "Adjustments" for segment loss totaling 5,616 million yen mainly consists of research and development costs of 3,841 million yen
pertaining to the fundamental research and element research of TEL and other general and administrative costs that do notbelong to reportable segments.
*3. Segment profit (loss) is adjusted against income before income taxes in Consolidated Statements of Income.
(iii) Impairment losses on fixed assets and goodwill, etc. in reportable segments
Significant impairment losses related to fixed assets: None
Significant changes in goodwill amount: None
Significant gains on negative goodwill: None12