TOKYO ELECTRON ANNUAL REPORT 2014

PAGE

20

CONTENTSCONTENTS

Financial Highlights

Business Overview

Financial
Financial Review
Review

Top Message

Talking about
Tokyo Electron

Consolidated Eleven-Year Summary

Consolidated Statements of Changes in Net Assets

Review of Operations
and Business Outlook

Corporate GovernanceConsolidated
Consolidated Balance
Balance Sheets
SheetsCorporate Citizenship

Financial Section

Corporate Data

Consolidated
Consolidated Statements
Statements ofof Comprehensive
Comprehensive Income
IncomeConsolidated Statements
Statements ofof Operations
Operations
Consolidated

Consolidated Statements of Cash Flows

R&D / Intellectual Property

Notes to Consolidated Financial Statements

Independent Auditor’s Report

Consolidated Eleven-Year SummaryTokyo Electron Limited and Subsidiaries
As of and for the years ended March 31
Thousands ofU.S. dollars

Millions of yen

2014

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

Net sales 1
Semiconductor production equipment
FPD production equipment
PV production equipment
Computer networks
Electronic components and computer networks
Other
Operating income (loss)
Income (loss) before income taxes and minority interests
Net income (loss)
Comprehensive income (loss) 2$5,948,018
4,652,565
275,136
36,980—978,683
4,654312,913(114,225)(188,583)(105,801)¥612,170
478,842
28,317
3,806—
100,726
479
32,205(11,756)(19,409)(10,889)¥ 497,300
392,027
20,077
83—
84,665448
12,54917,767
6,076
15,826¥ 633,091
477,873
69,889——84,868461
60,44360,602
36,72636,954¥ 668,722
511,332
66,721——
90,216453
97,87099,57971,92469,598¥ 418,637
262,392
71,361——
84,473411(2,181)(7,768)(9,033)(4,751)¥ 508,082
325,383
88,107——
94,207385
14,7119,637
7,543—¥ 906,092
726,440
68,016——111,181455
168,498
169,220
106,271—¥ 851,975
642,625
100,766—
19,16988,294
1,121
143,979
144,414
91,263—¥ 673,686
486,883
81,176—
17,49786,881
1,249
75,70375,32848,006—¥ 635,710
457,191
75,038—15,96686,2491,266
63,98355,77561,601—¥ 529,654
425,747——
18,44884,2291,230
22,28014,936
8,297—

Domestic sales
Overseas sales

1,570,453
4,377,565

161,631450,539

118,504
378,796

171,364
461,727

182,165
486,557

162,609
256,028

208,871299,211

323,946
582,146

313,816
538,159

262,532
411,154

232,678
403,032

242,318
287,336

241,819
124,359764,322

24,888
12,79978,664

26,631
21,77473,24924,19839,541
81,506

17,707
39,14070,56820,002
14,91954,07423,068
18,10860,98821,41322,70366,073

18,82027,12956,962

19,17013,33549,182

21,4639,876
43,88924,963
11,00744,1508,050,836
5,738,574

828,592
590,614775,528
605,127

783,611598,603809,205
584,802696,352
523,370668,998529,265

792,818
545,245

770,514469,811663,243
376,900

644,320
332,165

561,632
275,800

12,304

12,201

10,684

10,343

10,068

10,391

10,429

9,528

8,901

8,864

8,870

¥   33.91
33.85
3,309.58
51.00
180,61141,287¥   205.04
204.723,275.14
80.00
180,61142,414¥   401.73
401.103,198.66
114.00180,61144,896¥  (50.47)—
2,859.37
12.00
180,61139,285¥   42.15
42.07
2,896.55
24.00
180,61142,509¥   594.01
592.71
2,989.70
125.00180,611
43,324¥   511.27
509.84
2,573.72
103.00180,61141,289¥   267.61
267.32
2,112.30
55.00
180,611
46,272¥   343.63
343.54
1,863.28
45.00
180,61160,857¥   46.37
45.78
1,543.73
10.00
180,61160,873

1.0
2.5
76.5
0.64

6.3
9.5
74.9
0.79

13.3
14.6
70.8
0.89

(1.8)
(0.5)
73.5
0.61

1.4
2.9
77.5
0.70

21.4
18.6
67.5
1.16

21.8
16.9
59.7
1.19

13.5
11.2
56.8
1.03

20.3
10.1
51.6
1.05

3.1
4.2
49.1
0.97

¥  40,759¥   59,256¥   64,655¥   41,581¥   48,896¥   86,882¥   89,418¥   75,687¥   71,718¥   59,713

Depreciation and amortization 3
Capital expenditures 4
R&D expenses
Total assets
Total net assets (Total shareholders’ equity) 5
Number of employees
Net income (loss) per share of common stock:
Basic
Diluted 6
Net assets per share of common stock
Cash dividends per share of common stock
Number of shares outstanding (thousands)
Number of shareholders

U.S. dollars

Yen$    (1.05)
—
31.34
0.49

¥ (108.31)—
3,225.92
50.00
180,61130,563%ROE
Operating margin
Equity ratio
Asset turnover (times)
Net sales per employee

(3.3)
5.3
69.8
0.76
U.S. dollars

Thousands of yen$  483,424¥ 49,754

1 Until fiscal 2004, the FPD (Flat Panel Display) division was included in Semiconductor production equipment. From fiscal 2008, Computer networks is included inElectronic components and computer networks. Photovoltaic panel (PV) production equipment was included in the FPD production equipment until fiscal 2012.
2 From fiscal 2011, the Company applied “Accounting Standards for Presentation of Comprehensive Income”(Statement No. 25) released by the AccountingStandards Board of Japan (ASBJ). Accordingly, comprehensive income (loss) have been disclosed from fiscal 2010.
3 Depreciation and amortization does not include amortization and loss on impairment of goodwill.
4 Capital expenditures only represent the gross increase in property, plant and equipment.
5 From fiscal 2007, “Total net assets” has been disclosed in accordance with “Accounting Standard for Presentation of Net Assets in the Balance Sheet”(Statement No. 5) and “Guidance on Accounting Standard for Presentation of Net Assets in the Balance Sheet” (Guidance No. 8) released by the AccountingStandards Board of Japan (ASBJ). “Total net assets” through fiscal 2006 represents “Total shareholders’ equity” under the former accounting standards.

6 From fiscal 2011, the Company calculated net income per share of common stock (diluted) in accordance with “Accounting Standard for Earnings Per Share”(Statement No. 2 issued as of June 30, 2010) and “Guidance on Accounting Standard for Earnings Per Share” (Guidance No. 4 issued as of June 30, 2010)
released by the Accounting Standards Board of Japan (ASBJ). Dilution is not assumed for the years ended March 31, 2014 and 2010.
7 Effective from fiscal 2005, Tokyo Electron changed its method of revenue recognition to receipt of customer confirmation of product set-up and testing ofproducts for Semiconductor and FPD production equipment. The effect of this change decreased net sales, operating income and income before income
taxes by ¥80,956 million, ¥20,541 million and ¥20,563 million, respectively, for the year ended March 31, 2005, compared with the corresponding amounts
which would have been recorded if the previous method had been applied.
8 Effective from fiscal 2005, Tokyo Electron changed its method to account for after-sale repair expenses by recording accrued warranty expenses for
Semiconductor and FPD production equipment. The effect of this change decreased operating income and income before income taxes by ¥635 million and¥13,106 million, respectively, for the year ended March 31, 2005, compared with the corresponding amounts which would have been recorded if the previous
method had been applied.