FY2011 Financial Forecast
and Basic Management Policy

Hiroshi Takenaka, President & CEOMay 12, 201025
CORP IR / May 12, 2010

FY2010 Review

26
CORP IR / May 12, 2010

FY2010 Initial Financial Estimates
vs. Results（Billions of yen）

FY2010Initial estimates（May 14, 2009)

Results

Increase

Net sales

300.0

418.6

+118.6

Operating income-63.0-2.1+60.9

Ordinary income

-61.0

2.5

+63.5

EBIT-61.0

-7.7

+53.3

Net income

-38.0

-9.0

+29.0

27
CORP IR / May 12, 2010

FY2010: Achievements
Short-term
Short-termresponse
response►Response to drastic market changes•

Achieved ¥30 billion YonY reduction in fixed costs

Medium-term
Medium-termactions
actions► Maintained high level of R&D investment
R&D expenses ¥54 billion (16% of SPE/FPD/PVE sales)• Invested in existing SPE, RLSA, 3DI, SiC Epi, and other new areas•► Reorganized and optimized organization and facilities ahead ofnext stage in growth
Reorganized sales and service structure• Consolidated domestic development and manufacturing locations, established andenhanced technology centers in Taiwan and the U.S.
• Decided to restart plan to construct new Miyagi plant• Implemented One-grade up Program for employees•28
CORP IR / May 12, 2010

Business Environment

29
CORP IR / May 12, 2010

Business Environment► SPE capex• Global economic recovery has led to a strong surge in demand forsemiconductors and a rapid recovery in orders• A large number of new lines are planned in the second half of CY2010 and
first half of CY2011• WFE* investment in CY2010 expected to be up more than 90%► FPD capex
Sustained boom in demand for flat screen TVs, mainly in China; continuing
investment in new line construction► PV capex
Crystal silicon and compound (Cd-Te) performing well due to priceadvantage, thin film silicon sluggish but expected to grow in medium/longterm

30*Wafer Fab Equipment
CORP IR / May 12, 2010

SPE WFE* Capex by Segment
($B)

3530

Logic& Foundry

252015NAND

10DRAM

50(CY) 2005

20062007

2008

2009

2010(E) 2011(E)2010/2011:2010/2011: Major
Majorgrowth
growthin
inWFE
WFECAPEXCAPEX*Wafer Fab Equipment

Source: Gartner DataQuest, TEL Marketing
CORP IR / May 12, 201031

4-6/ 01
7-9/ 01
10-1
2/ 01
1-3/ 02
4-6/ 02
7-9/ 02
10-1
2/ 02
1-3/ 03
4-6/ 03
7-9/ 03
10-1
2/ 03
1-3/ 04
4-6/ 04
7-9/ 04
10-1
2/ 04
1-3/ 05
4-6/ 05
7-9/ 05
10-1
2/ 05
1-3/ 06
4-6/ 06
7-9/ 06
10-1
2/ 06
1-3/ 07
4-6/ 0
7
7-9/
07
10-1
2/ 07
1-3/ 08
4-6/ 0
8
7-9/
08
10-1
2/ 08
1-3/ 09
4-6/ 09
7-9/ 09
10-1
2/ 091-3/ 1
07-9/00
10-1
2/ 00
1-3/ 01

Quarterly SPE+FPD/PVE Orders
Jan-Mar/2010(Billions of Yen)250

FPD/PVE order
SPE orderSPE
123.6 (+14%)
FPD/PVE 10.6 （+372%)
Total:134.3 (+21%)( ): change from Oct-Dec/2009% is calculated using full amounts

200

150

100

50

032

CORP IR / May 12, 2010

SPE Orders by Application(Equipment only)
100%

740%

826

12

6371632461782133

46
58

1555

39392432

2415224935
2291285245

2252

0342123033

4115363522161927215520%1541160%

18101929262409/79371709/4680%

34282509/13

2211512216392710/1309/10-1208/10-1208/7908
/4608
/1307
/10-1207/7907/4607/1306/10-1206
/7906
/4606
/1305
/10
-120%

Logic & Others (MPU, System LSI, Others)
Logic Foundry
FlashDRAM(TEL estimate)
CORP IR / May 12, 201033

FY2011 Financial Estimates

34
CORP IR / May 12, 2010

FY2011 Financial Estimates(Billion yen)

FY2010FY2011

Full year

Net sales
SPEFPD/PVE
EC/CNOthers
OperatingincomeOrdinary income

1H (E)

2H (E)

Full year (E)YoYchange

418.6
262.3
71.3
84.4
0.3

315.0
240.0
32.0
43.0
-

345.0
261.0
37.0
47.0
-

660.0
501.0
69.0
90.0
-+58%
+91%
-3%
+7%
--2.1 (-0.5)

33.0 (10.5)

46.0 (13.3)

79.0 (12.0)+81.1

2.5 ( 0.6)

34.0 (10.8)

46.0 (13.3)

80.0 (12.1)

+77.5

EBIT

-7.7 (-1.9)

34.0 (10.8)

46.0 (13.3)

80.0 (12.1)+87.7

Net income-9.0 (-2.2)

22.0 ( 7.0)

33.0 ( 9.6)

55.0 ( 8.3)

+64.012253762

Dividend (yen)In principle, export sales of Tokyo Electron’s mainstay semiconductor and FPD/PV cell production equipment are denominated in yen. While some settlements are denominatedin dollars, exchange risk is hedged as forward exchange contracts are made individually at the time of booking. Accordingly, the effect of exchange rates on profits is negligible.
1, SPE: Semiconductor Production Equipment, FPD/PVE: Flat Panel Display and Photovoltaic Cell Production Equipment,
EC/CN: Electronic Components and Computer Networks
2. Numbers shown in ( ): profit ratios
3. YoY changes and profit ratios are calculated using full amounts, before rounding.
CORP IR / May 12, 201035

Net Sales, Operating Income,Operating Margin
Estimates
Estimates
forforthis
thisFYFY(Billions of Yen)

1,000
851.9
723.8
635.7

906.0

660.0

673.6

529.6

500

508.0

460.5

417.8

418.6
16.9%

16.7%
10.1%

11.2%

63.9

75.7

12.0%

4.2%

0121.0
-4.4%

FY01

-18.3

FY02

0.2%
1.1

FY03

22.2

FY04

Net Sales

FY05

FY06

18.6%

143.9

FY07

Operating Income

168.4

FY08

2.9%-0.5%

14.7-2.1

FY09

FY1079.0
FY11(E)

Operating Margin-500

36
CORP IR / May 12, 2010

Aiming for New Growth37
CORP IR / May 12, 2010

Corporate Philosophy

As a leader in cutting-edge fields, provide highvalue technology and services globally to help
people realize high quality, sound lifestyles
Help create a society with a vision, and take astrong lead in meeting environmental challenges
Share a sense of mission among all employees,
and realize our dreams as a bright and activecompany full of vitality

38
CORP IR / May 12, 2010

Global R&D and Manufacturing BasesImec (Belgium )TTCA (U.S.A.)TEKS (Korea)

TEL VC (U.S.A.)TEL Epion (U.S.A.)TTCT (Taiwan)

TDC: Technology Development Center
LPDC: Leading-edge Process Development Center
TDI:Tokyo Electron Technology Development Institute
TELAT: Tokyo Electron ＡＴ
TKL: Tokyo Electron Kyushu
TTL: Tokyo Electron Tohoku
TEKS: Tokyo Electron Korea Solution
TTCA: TEL Technology Center, America
TTCT: TEL Technology Center, Taiwan
TEL VC:TEL Venture CapitalTimbre Technology (U.S.A.)TDC, LPDC, TDI, TELAT, TKL, TTL (Japan)

R&D
R&Dframework
frameworkcloselycloselylinked
linkedto
tocutting-edge
cutting-edge
technologies
technologies
CORP IR / May 12, 201039

R&D Expenses and CAPEX
R&D
R&DExpenses
Expenses

CAPEX
CAPEX

(Billion Yen)50

R&D Expenses% to SPE+FPD/PV sales

100

80

66.0

60.9

60

CAPEX
Depreciation

40

67.0

30

54.0

23.0

22.7 21.4

10%

5%
2000%

FY10

Main
Mainuse:use:►Etch►Etchsystemsystem(Poly(PolyEtch,Etch,etc.)
etc.)►Singlewafer
cleaningsystem►Single wafer cleaning system►RLSA►RLSAapplication
applicationexpansion
expansion►Newarea(3DI,FPD,►New area (3DI, FPD,PV,PV,etc.)
etc.)

FY11(E)

21.0

20.0

18.120

FY09

35.0

15%

14.940FY08(Billion Yen)

100

FY08

FY09

FY10

FY11(E)

Main
Mainuse:use:►New►NewMiyagi
Miyagiplant
plantrelated
related►Evaluation
andmeasuring►Evaluation and measuringequipment
equipment►Environment-related►Environment-related

FY2011FY2011R&D
R&Dbudget
budgetisisTEL’s
TEL’s largest
largest ever
ever40CORP IR / May 12, 2010

New Product - Tactras™ RLSA™ Etch
Dielectricplate

Microwave(2.45GHz)

Plasma generation area
Plasma diffusion area
wafer

Radial Line Slot Antenna

Tactras™RLSA™ Etch

RLSA plasma advantage

Application

 Less plasma damage
 High selectivity

 Poly Etch
 Si Etch
 CVD, etc.

RLSA
RLSAsoonsoon bebeadopted
adoptedfor
forvolume
volumeproduction
productionat
at aakey
keycustomer
customer
41
CORP IR / May 12, 2010

SPE Business: Status and Objectives
SPE
SPEbusinessbusiness
Coater/Developer

Etching

Product Share (FY2010)
Thermalprocessing

Single wafer
CVD

TEL share

Cleaning

Prober(Share: TEL estimates)

Grow share in the poly etch market→ Promote new models worldwide

Grow share in single wafer cleaning→Raise productivity→Develop differentiated technology

Focus
Focusourourefforts
effortsparticularly
particularlyon
onetchingetchingand
andcleaningcleaningsystems
systems
42
CORP IR / May 12, 2010

FPD/PV Business: Status and Objectives
FPDFPDbusinessbusiness►Expand product position►Thorough cost reductions►Accelerate organic EL and other newtechnology development

FY2010 Product share
FPD Etcher

FPD Coater/developer

Share: TEL estimates

PVPVbusinessbusiness► Collaboration with Sharp; Alliance with Oerlikon► From a long term perspective, foster PV based around thin film as acore businessRespond
Respondflexibly
flexibly to
toenvironmental
environmentalchanges
changes
43
CORP IR / May 12, 2010

Achieving sustained growth:
Key medium-term issues
1. Exploit growth opportunities in existing businesses
2. Use differentiated technology to create high profit
businesses
3．Expand field solutions businesses
4．Further enhance our manufacturing strengths
5．Cultivate new businesses based on coretechnologies

44
CORP IR / May 12, 2010