TOKYO ELECTRON

Summary of Consolidated Financial Results for the Year Ended
March 31, 2023 (Japanese GAAP)May 11, 2023

Name of Listed Company:
Security Code:
URL:
Representative:
Contact:

Tokyo Electron Limited
8035
https://www.tel.com
Toshiki Kawai, Representative Director, President & CEO
Akifumi Matsumura, Vice President of Accounting Dept.
Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: May 31, 2023
Preparation of supplementary materials for the financial results: Yes
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 Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2022

March 31, 2023%

Net sales (Millions of yen)%

2,003,805

43.2

2,209,025

10.2

Operating income (Millions of yen)599,27186.9

617,723

3.1

Ordinary income (Millions of yen)

601,72486.8

625,185

3.9

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

437,07679.9

471,584

7.9

Net income per share of common stock (Yen):
Basic

935.95

1,007.82

Diluted931.301,003.86

Return on equity (%)

37.2

32.3

Ordinary income to total assets (%)

36.4

29.7

29.9

28.0

Operating income to net sales (%)
Comprehensive income:Year ended March 31, 2023:

501,421 million yen, 3.1%

Year ended March 31, 2022:

486,183 million yen, 59.0%

Profit (loss) on equity method: Year ended March 31, 2023: ࠉ 2,968 million yen
Year ended March 31, 2022:

1,721 million yen

Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. “Net income per share of common stock - Basic” andNote: “Net income per share of common stock - Diluted” are calculated on the assumption that stock split was implemented at theNote: beginning of the previous fiscal year.
(2) Consolidated Financial Position
As ofMarch 31, 2022

March 31, 2023

Total assets (Millions of yen)

1,894,457

2,311,594

Total net assets (Millions of yen)

1,347,048

1,599,524

70.5

68.7

2,857.48

3,389.68

Equity ratio (%)
Net assets per share (Yen)
Equity:1,587,595 million yen (as of March 31, 2023)
1,335,152 million yen (as of March 31, 2022)

Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. “Net assets per share” is calculated on the assumption
Note: that stock split was implemented at the beginning of the previous fiscal year.
(3) Consolidated Cash Flows
Year ended
March 31, 2022

March 31, 2023

Cash flows from operating activities

283,387

Cash flows from investing activities(55,632)(41,756)

Cash flows from financing activities(167,256)(256,534)

Cash and cash equivalents at end of period

335,648

472,4711

426,270

TOKYO ELECTRON

2. Dividends
Year ended
March 31, 2022

Year ending
March 31, 2024

March 31, 2023

(Forecast)

1Q-end dividends per share (Yen)

-

-

-

2Q-end dividends per share (Yen)

643.00857.00128.00---Year-end dividends per share (Yen)

760.00854.00

192.00

Annual dividends per share (Yen)

1,403.00

1,711.00

320.00Total dividends (Millions of yen)

219,339

267,909

Payout ratio (%)

50.0

56.6

Dividend on equity (%)

18.6

18.3

3Q-end dividends per share (Yen)

50.0

Notes: 1. The Company implemented a 3-for-1 common stock split on April 1, 2023. For the fiscal year ended March 31, 2022 and theNotes:

fiscal year ended March 31, 2023, the actual amount of dividends prior to the stock split are presented. For the fiscal year

Notes:

ending March 31, 2024 (forecast), the numbers after the stock split are presented. For reference, annual dividends for theNotes:

fiscal year ending March 31, 2024 (forecast) without considering the stock split are 960 yen.

Notes: 2. Year-end dividends of 854 yen for the year ended March 31, 2023 include 60th anniversary commemorative dividends ofNotes:

200 yen.

3. Financial Forecasts for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ending
September 30, 2023

March 31, 2024%%

Net sales (Millions of yen)

790,000(33.2)

1,700,000(23.0)

Operating income (Millions of yen)

161,000(54.0)

393,000(36.4)

Ordinary income (Millions of yen)

162,000(54.1)

395,000(36.8)Net income attributable to owners of parent (Millions of yen)

120,000(55.1)

300,000(36.4)Net income per share (Yen)

256.21640.53

Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. For “Net income per share” in financial forecasts for
Note: the year ending March 31, 2024, the number after the stock split is presented.
Notes(1)䚷Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): None
(2)䚷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
(3) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of March 31, 2023:

471,632,733 shares

As of March 31, 2022:

471,632,733 shares

2. Number of shares of treasury stock
As of March 31, 2023:

3,272,016 shares

As of March 31, 2022:

4,384,743 shares

3. Average number of shares outstanding
Year ended March 31, 2023:

467,926,805 sharesYear ended March 31, 2022:

466,988,225 shares

Notes: 1. The Company implemented a 3-for-1 common stock split on April 1, 2023. “Number of shares issued and outstanding”, “Number of shares
Notes:of treasury stock” and “Average number of shares outstanding” are calculated on the assumption that stock split was implemented at theNotes:

beginning of the previous fiscal year.

Notes: 2. The number of shares of treasury stock includes the Company’s shares held by "Executive compensation Board Incentive Plan (BIP) trust"
Notes:and "share-delivering Employee Stock Ownership Plan (ESOP) trust". (1,502,637 shares as of March 31, 2023, 1,831,587 shares as ofNotes:March 31, 2022)

Notes:In addition, these Company’s shares are included in the treasury stock which is deducted in calculating the average number of shares.

2

TOKYO ELECTRON(Reference) Non-consolidated Financial Results for the Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2022

March 31, 2023%

Net sales (Millions of yen)
Operating income (Millions of yen)%

1,842,535

42.5

2,020,513

9.7

306,63987.0

379,94223.9

Ordinary income (Millions of yen)

452,18273.8

585,745

29.5

Net income (Millions of yen)

358,065

69.3

484,557

35.3

Net income per share of common stock (Yen):
Basic

766.76

1,035.54

Diluted762.95

1,031.48

Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. “Net income per share of common stock - Basic”
Note: and “Net income per share of common stock - Diluted” are calculated on the assumption that stock split was implemented
Note: at the beginning of the previous fiscal year.
(2) Financial Position
As ofMarch 31, 2022
Total assets (Millions of yen)
Total net assets (Millions of yen)
Equity ratio (%)
Net assets per share (Yen)
Equity:March 31, 2023

1,439,595

1,728,050

850,303

1,099,987

58.2

63.0

1,794.35

2,323.12

1,088,057 million yen (as of March 31, 2023)
838,407 million yen (as of March 31, 2022)

Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. “Net assets per share” is calculated on the
Note: assumption that stock split was implemented at the beginning of the previous fiscal year.
* Status of implementation of audit proceduresThis Summary of Consolidated Financial Results is outside the scope of external auditor's audit 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. Overview of Operating Results and Consolidated Financial
Conditions (4) "Future Forecast" on page 7㻚 The Company plans to hold an online conference for investors and analysts on
May 11, 2023. Supplementary materials to be used at the conference will be posted on the Company's website.

3)LOH1DPH
TOKYO ELECTRON

1. Overview of Operating Results and Consolidated Financial Conditions(1) Overview of Operating Results(i) Business Environment during the Fiscal Year Ended March 31, 2023
The global economy during the current consolidated fiscal year slowed due to persistent inflation of raw material, energy,
and various goods in conjunction with heightened geopolitical risks, interest rate hikes, and rapid exchange rate
fluctuations mainly in Europe and the United States. The Company continues to closely monitor the impact of these
global economic and geopolitical headwinds and the impact on the supply chain.
On the other hand, in the electronics industry, where the Tokyo Electron (TEL) Group operates, the role ofsemiconductors that support electronic devices and their technology innovations are becoming more and more
important, against the backdrop of the transition to a data society accompanying the expansion of information andcommunication technology and efforts to create a decarbonized society. With its increased importance, thesemiconductor production equipment market has become the largest ever.

(ii) Overview of Profit and Loss during the Fiscal Year Ended March 31, 2023
In this environment, the consolidated business results for the fiscal year under review are as follows.
Net sales for the fiscal year increased 10.2% from the previous fiscal year to 2,209,025 million yen. Domestic net sales
increased 4.2% from the previous fiscal year to 239,937 million yen, while overseas net sales increased 11.0% to
1,969,088 million yen to account for 89.1% of net sales.
Cost of sales increased 12.1% to 1,224,617 million yen and gross profit increased 8.0% to 984,408 million yen. As aresult, the gross profit margin decreased 0.9 points to 44.6%.
Selling, general and administrative (SG&A) expenses increased 17.3% to 366,684 million yen, while the ratio toconsolidated net sales increased 1.0 points to 16.6%.
As a result, operating income increased 3.1% to 617,723 million yen and operating profit ratio decreased 1.9 points to
28.0%. After netting of non-operating income of 10,066 million yen and non-operating expenses of 2,604 million yen,ordinary income increased 3.9% to 625,185 million yen.
Income before income taxes was 624,856 million (year-on-year growth of 4.7%) and net income attributable to ownersof parent was 471,584 million yen (year-on-year growth of 7.9%).
As a result, net income per share was 1,007.82 yen compared to net income per share of 935.95 yen in the previous
fiscal year.

4)LOH1DPH
TOKYO ELECTRON(iii) Overview of Operations by Business Segment during the Fiscal Year Ended March 31, 2023
The overview of each business segment is as described below.

Semiconductor Production Equipment
Capital investment in semiconductors for logic/foundry has been made in a wide range of areas, from cutting-edge tomature generations of semiconductors, driven by the digitalization of society. Capital investment in memory was revised
starting in the second half of the fiscal year due to inventory adjustments but remained at a high level throughout the
fiscal year.
Consequently, net sales to external customers in this segment during the fiscal year under review were 2,155,206
million yen (year-on-year growth of 10.9%).

Flat Panel Display (FPD) Production Equipment
As capital investment for large-sized LCD panels for televisions has run its course, the overall manufacturing equipment
market for FPD TFT arrays has slowed. Meanwhile, capital investments in small and medium-sized OLED panels
continue in conjunction with displays installed in end products being converted from LCD panels to OLED panels.
Consequently, net sales to external customers in this segment during the fiscal year under review were 53,674 million
yen (year-on-year decrease of 10.3%).

Other
Net sales to external customers in this segment during the fiscal year under review totaled 144 million yen (year-onyear growth of 10.0%).

(For reference)
Consolidated Operating Results

䠄Millions of yen䠅Year ended
March 31,2022

Net Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia, and Others
FPD Production Equipment
OthersOperating Income
Ordinary Income
Net Income Attributable to Owners of Parent

2,003,805
1,943,843
228,902
268,065
107,954377,767
359,225
513,529
88,39859,830131
599,271
601,724
437,076

Year ended March 31, 2023
1Q
473,654464,003
42,022
67,32556,52685,172
96,816
94,08622,0559,614
36
117,519
117,692
88,095

Note: Intersegment sales or transfers are eliminated.

5

First
SecondFull Year
2Q
Half
3Q
4Q
Half
709,243 1,182,897 467,831 558,296 1,026,127 2,209,025
689,061 1,153,065 458,820 543,319 1,002,140 2,155,206
90,546
132,569 48,216 57,608
105,825 238,394
108,305
175,630 58,469 110,227
168,697 344,327
50,990107,516 42,604 34,140
76,745 184,261
84,289169,461 75,406 104,700
180,107 349,568
133,829
230,645 110,149 79,474
189,624 420,269
168,598
262,685 102,792 131,277
234,070 496,755
52,50274,557 21,179 25,891
47,070 121,628
20,14429,7598,975 14,940
23,91553,674
36
73
35
36
71
144
232,646
350,165 114,771 152,787
267,558 617,723
235,627
353,319 116,909 154,956
271,866 625,185
179,251
267,346 85,574 118,663
204,237 471,584 )LOH1DPH
TOKYO ELECTRON(2) Overview of Consolidated Financial Conditions
Current assets at the end of the current fiscal year were 1,740,959 million yen, an increase of 332,256 million yen
compared to the end of the previous fiscal year. This was mainly due to an increase of 198,825 million yen in cash anddeposits, an increase of 178,363 million yen in inventories.
Tangible fixed assets increased by 36,010 million yen from the end of the previous fiscal year, to 259,088 million yen.
Intangible fixed assets increased by 6,019 million yen from the end of the previous fiscal year, to 28,559 million yen.
Investments and other assets increased by 42,850 million yen from the end of the previous fiscal year, to 282,986
million yen.
As a result, total assets increased by 417,136 million yen from the end of the previous fiscal year, to 2,311,594 million
yen.
Current liabilities increased by 161,314 million yen from the end of the previous fiscal year, to 629,893 million yen. This
was largely due to an increase of 186,614 million yen in customer advances, and a decrease of 36,015 million yen inincome taxes payable.
Long-term liabilities increased by 3,345 million yen from the end of the previous fiscal year, to 82,175 million yen.
Net assets increased by 252,476 million yen from the end of the previous fiscal year, to 1,599,524 million yen. This waslargely due to an increase of 471,584 million yen resulting from recording net income attributable to owners of parent,a decrease resulting from the payment of 252,988 million yen in year-end dividends for the previous fiscal year andinterim dividends for the current fiscal year, and an increase of 13,960 million yen in net unrealized gains on investment
securities. As a result, the equity ratio was 68.7%.

(3) Overview of Consolidated Cash Flows
Cash and cash equivalents at the end of the current fiscal year increased by 136,823 million yen compared to the endof the previous fiscal year, to 472,471 million yen. The combined balance including 628 million yen in time deposits andshort-term investments with maturities of more than three months that are not included in cash and cash equivalents
was 473,100 million yen, an increase of 101,825 million yen from the end of the previous fiscal year. The overall situation
regarding cash flows for the fiscal year was as described below.
Cash flows from operating activities were positive 426,270 million yen, an increase of 142,882 million yen compared tothe end of the previous fiscal year. The major positive factors were 624,856 million yen in income before income taxes,
and a 185,616 million yen increase in customer advances. The major negative factors were 209,111 million yen in
payment of income taxes, and a 173,487 million yen increase in inventories.
Cash flows from investing activities were negative 41,756 million yen compared to negative 55,632 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 66,897 million yen for the purchase of
tangible fixed assets.
Cash flows from financing activities were negative 256,534 million yen compared to negative 167,256 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 252,988 million yen in dividends.

6)LOH1DPH
TOKYO ELECTRON(4) Future forecast
Due to concerns about a macro-economic slowdown and geopolitical risks, semiconductor manufacturers are
postponing or restraining capital investments. In this business and economic environment, in the fiscal year ending
March 31, 2024, while reducing fixed costs, however in anticipation of future growth, we plan to invest approximately
200 billion yen in research and development (R&D), the largest ever. In light of these factors, the consolidated financial
forecasts for the fiscal year ending March 31, 2024 are as follows. Meanwhile, as described above, due to theimportance of innovating semiconductor technologies (including the aspects of high capacity, high speed, high reliability,
and low power consumption) stemming from the transition to a data society accompanying the expansion of informationand communication technology and efforts toward realizing a decarbonized society, the semiconductor production
equipment market is expected to further grow in the future, and we expect to see a major recovery in the fiscal year
ending March 31, 2025.

Consolidated Financial Forecast(Billions of yen, Y/Y change)
InterimFull Year
790.0(33.2)% 1,700.0(23.0)% 
161.0(54.0)%
393.0(36.4)%
162.0(54.1)%
395.0(36.8)%
120.0(55.1)%
300.0(36.4)%

Year ending March 31, 2024
Net Sales
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent

Note: The financial forecasts and estimates stated in this announcement are based on certain assumptions judged to be reasonable by theCompany 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 the forecasts 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 stated in this announcement.

(5) Basic Policy on Profit Allocation and Payment of Dividends for the Current and Next Fiscal YearsTEL utilizes capital reserves to raise corporate value through earnings growth and provide returns directly toshareholders by concentrating investment in high-growth areas and linking dividend payments to business performance.
Basic policy concerning shareholder return is as follows.

Shareholder Return Policy• Our dividend policy is to link dividend payments to business performance on an ongoing basis and a payout ratio
is around 50% based on net income attributable to owners of parent, with the conditions that an annual dividend pershare is not less than 150 yen. Besides, TEL will review our dividend policy if TEL does not generate net income fortwo consecutive fiscal years.
Note: The Company split its common stock effective April 1, 2023 in the proportion of one share into three shares.Accordingly, fromthe next fiscal year (year ending March 31, 2024), dividend per share is not less than 50 yen.

• TEL will flexibly consider share buybacks.

7)LOH1DPH
TOKYO ELECTRON

The year-end dividends for the current fiscal year (the year ended March 31, 2023) are 854 yen per share (including
the 60th anniversary commemorative dividends of 200 yen). The dividends for the full year are 1,711 yen per share,
which includes the interim dividends of 857 yen per share.

2Q-endCurrent fiscal year
(ended March 31, 2023)

857 yenDividends per share
Year-end

Total

854 yen

1,711 yen(Commemorative:200 yen)

The dividends for the next fiscal year (the year ending March 31, 2024), which are the amount after the stock split,
are forecasted to be 320 yen per share for the entire year (interim dividends : 128 yen, year-end dividends : 192yen), in accordance with the above consolidated forecast for net income attributable to owners of parent for the next
fiscal year.

Next fiscal year
(ending March 31, 2024)

2Q-endDividends per share
Year-end

Total

128 yen

192 yen

320 yen

2. Basic philosophy on the selection of accounting standards
The consolidated financial statements of TEL group have been prepared in conformity with accounting principles
generally accepted in Japan. In regard to the application of IFRS, we will pay close attention to domestic andinternational implementation adoption trends and respond accordingly.

8

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2022

March 31, 2023

ASSETS
Current assets
Cash and deposits

274,274

Notes and accounts receivable - trade, and contract assets

433,948464,889

Merchandise and finished goods

183,512

236,795

Work in process

144,330

161,938

Raw materials and supplies

146,002

253,474

Prepaid consumption tax

110,494

123,977

Others116,301

26,969Allowance for doubtful accounts
Total current assets

473,099

(160)

(184)

1,408,703

1,740,959

233,553

248,421(121,288)(130,524)

Long-term assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and carriers
Accumulated depreciation
Machinery and carriers, net

112,264

117,896

181,306

204,841(136,173)(153,330)

45,13251,510Land

31,052

31,283

Construction in progress

20,09539,605

Others

51,777

61,680

Accumulated depreciation(37,244)(42,887)

Others, net

14,532

18,792

223,078

259,088

Others22,54028,559Total intangible fixed assets

22,54028,559Investment securities

144,972

165,507

Deferred tax assets

45,65458,599Total tangible fixed assets
Intangible fixed assets

Investments and other assets

Net defined benefit assets

16,186

19,374

Others34,62140,844

Allowance for doubtful accounts(1,298)(1,340)240,135

282,986

485,754570,634

1,894,457

2,311,594

Total investments and other assets
Total long-term assets
Total assets

9

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2022

March 31, 2023

LIABILITIESCurrent liabilities
Trade notes and accounts payable

120,908

116,317

Income taxes payable

107,193

71,177

Customer advances

102,555

289,169

Accrued employees’ bonuses

44,871

43,337

Accrued warranty expenses

26,56834,382Others

66,48275,509Total current liabilities

468,578

629,893

Net defined benefit liabilities

62,53360,366

Others

16,29621,808Long-term liabilities

Total long-term liabilities

78,82982,175547,408

712,069

Common stock

54,961

54,961

Capital surplus

78,01178,011

1,104,983

1,322,203

Total liabilities
NET ASSETS
Shareholders' equity

Retained earnings
Treasury stock, at cost

(27,418)(22,033)

Total shareholders' equity

1,210,537

1,433,141

93,492

107,452

(52)

(46)

30,64043,091

Accumulated other comprehensive income
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments
Foreign currency translation adjustments
Accumulated remeasurements of defined benefit plans

535

3,954

Total accumulated other comprehensive income (loss)

124,615

154,453

11,895

11,9291,347,048

1,599,524

1,894,457

2,311,594

Share subscription rights
Total net assets
Total liabilities and net assets

10

TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)
Year ended

Year ended

March 31, 2022

March 31, 2023

Net sales

2,003,805

2,209,025

Cost of sales

1,091,983

1,224,617

Gross profit

911,822984,408

Research and development expenses

158,256

191,196

Others154,295

175,487

Total selling, general and administrative expenses

312,551

366,684599,271617,723

Interest income

616

1,235

Dividend income

959

1,200

1,721

2,968

Selling, general & administrative expenses

Operating income
Non-operating income

Share of profit of associates accounted for using the equity method
Revenue from grants

492

2,559

Others

2,190

2,102

Total non-operating income

5,980

10,066

Foreign exchange loss

2,447

1,401

Others

1,080

1,202

Total non-operating expenses

3,527

2,604

601,724625,185

Gain on sales of fixed assets

71

890

Total unusual or infrequent profit

71

890

406

781

-

438

Non-operating expenses

Ordinary income
Unusual or infrequent profit

Unusual or infrequent loss
Loss on disposal and sales of fixed assets
Loss on impairment of fixed assets, goodwill and other assets
Additional payment of value-added tax
OthersTotal unusual or infrequent loss

4,577

-

114

-

5,097

1,219

Income before income taxes

596,698

624,856

Provision for income taxes and enterprise taxes

162,708

173,704

Deferred income taxes(3,086)(20,431)

Total income taxes

159,622

153,272

Net income

437,076

471,584

Net income attributable to owners of parent

437,076

471,584

11

TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Year ended

Year ended

March 31, 2022

March 31, 2023

437,076

471,584

Net unrealized gains (losses) on investment securities

27,374

13,951

Foreign currency translation adjustments

20,066

12,320Remeasurements of defined benefit plans

1,594

3,382

70

183

49,107

29,837486,183

501,421486,183

501,421

Other comprehensive income (loss)

Share of other comprehensive income of associates
accounted for using the equity method
Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

12

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2022

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

Retained earnings

78,011

835,240

Cumulative effects of changes
in accounting policies
Restated balance

Treasury stock(30,744)(753)

54,96178,011

Total shareholders'equity937,468(753)

834,486(30,744)936,714

Changes of items during
the period
Cash dividends(166,252)(166,252)

Net income attributableto owners of parent

437,076

437,076

Purchase of treasury
stock
Disposal of treasury
stock

(15)

(15)

(327)

3,341

3,014

Net changes except forshareholders' equity
Total changes of items
during the period--

270,496

3,325

273,822

Balance at end of period

54,96178,011

1,104,983(27,418)

1,210,537

Accumulated other comprehensive income
Net unrealized gains Net deferred gains(losses) on(losses) on hedging
investment securities
instruments
Balance at beginningof period

66,124Foreign currencytranslation
adjustments(79)

10,441

Accumulated
Total accumulated
remeasurements of other comprehensive
defined benefit plansincome (loss)(978)75,508

Share subscription
rights

11,585

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

1,024,562(753)

66,124(79)

10,441(978)75,508

11,585

1,023,809

Changes of items during
the period
Cash dividends(166,252)

Net income attributableto owners of parent

437,076

Purchase of treasury
stock

(15)

Disposal of treasury
stock

3,014

Net changes except forshareholders' equity

27,36726

20,1991,513

49,107310

49,417

Total changes of items
during the period

27,36726

20,1991,513

49,107310

323,239

Balance at end of period

93,492(52)

30,640535

124,615

11,895

1,347,048

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TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2023

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

Retained earnings

78,011

Treasury stock

1,104,983(27,418)

Cumulative effects of changes
in accounting policies
Restated balance

Total shareholders'equity1,210,537-

54,96178,011

1,104,983(27,418)

1,210,537

Changes of items during
the period
Cash dividends(252,988)(252,988)

Net income attributableto owners of parent

471,584

471,584

Purchase of treasury
stock
Disposal of treasurystock(1,728)(1,728)(1,375)

7,113

5,737

Net changes except forshareholders' equity
Total changes of items
during the period--

217,219

5,384

222,604

Balance at end of period

54,96178,011

1,322,203(22,033)

1,433,141

Accumulated other comprehensive income
Net unrealized gains Net deferred gains(losses) on(losses) on hedging
investment securities
instruments
Balance at beginningof period

93,492Foreign currencytranslation
adjustments(52)

30,640

Accumulated
Total accumulated
remeasurements of other comprehensive
defined benefit plansincome (loss)
535

124,615

Share subscription
rights11,895

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

1,347,048-

93,492(52)

30,640535

124,615

11,895

1,347,048

Changes of items during
the period
Cash dividends(252,988)

Net income attributableto owners of parent

471,584

Purchase of treasurystock(1,728)

Disposal of treasury
stock

5,737

Net changes except forshareholders' equity

13,9606

12,4503,419

29,83733

29,871

Total changes of items
during the period

13,9606

12,4503,419

29,837

33

252,476

Balance at end of period

107,452(46)

43,091

3,954

154,453

11,9291,599,524

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TOKYO ELECTRON

Consolidated Statements of Cash Flows(Millions of yen)
Year ended

Year ended

March 31, 2022

March 31, 2023

Cash flows from operating activities
Income before income taxes

596,698

624,856

Depreciation and amortization

36,72742,927

206

168

Increase (decrease) in accrued employees' bonuses

9,540(2,301)

Increase (decrease) in accrued warranty expenses

9,614

7,594

Decrease (increase) in notes and accounts receivable - trade,and contract assets(195,543)(24,750)

Decrease (increase) in inventories(100,309)(173,487)

Increase (decrease) in trade notes and accounts payable

18,892(11,406)

Decrease (increase) in prepaid consumption tax(27,675)(13,390)

Increase (decrease) in customer advances

32,031

185,616

Amortization of goodwill

Others

7,070(3,354)

Subtotal

387,252

632,473

Receipts from interest and dividends

2,232

2,907

Income taxes paid or refund (paid)(106,098)(209,111)

Net cash provided by operating activities

283,387

426,270

(641)

(713)

Cash flows from investing activities
Payment into time deposits
Proceeds from time deposits

604

731

Payment for purchase of short-term investments(35,000)-

Proceeds from redemption of short-term investments

45,01435,000

Payment for purchase of fixed assets(56,153)(66,897)

Payment for acquisition of intangible assets(8,950)(9,416)

(504)

(459)

(55,632)(41,756)(15)(1,728)(166,252)(252,988)(988)(1,817)(167,256)(256,534)

9,156

8,843

OthersNet cash used in investing activities
Cash flows from financing activities
Payment for purchase of treasury stock
Dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

69,655

136,823

Cash and cash equivalents at beginning of period

265,993335,648

Cash and cash equivalents at end of period

335,648

472,471

15

TOKYO ELECTRON

Notes
Going concern: None
Changes in accounting policies, changes in accounting estimates and restatements: None

16

TOKYO ELECTRON

Segment information
1. 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 used in wafer processing,wafer probers used in the wafer testing process and other semiconductor production equipment, such as wafer bonders/debonders.
The SPE segment principally develops, manufactures, and sells such products, and provides services related to them.
Products of the FPD production equipment segment mainly consist of etch/ash systems used in the manufacture of flat panel displays.
The FPD production equipment segment principally develops, manufactures, and sells such products, and provides services related tothem.
2. Means to measure net sales and profit or loss in each reportable segment
The method used to account for each reportable segment is similar to those applied to prepare consolidated financial statements.
Intersegment revenues or transfers are based on prevailing market prices.
3. Net sales and profit or loss in reportable segments
Year ended March 31, 2023

(Millions of yen)
Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

2,155,206

53,674

Others(Note 1)

Total

Adjustments(Note 2)

Consolidated(Note 3)

Sales
Sales to external customers
Intersegment sales or transfers
Net sales
Segment profit (loss)

-

-

144

2,209,025-

2,209,025

34,06934,069(34,069)-

2,155,206

53,67434,2142,243,094(34,069)

2,209,025

696,378

1,061

1,226

698,666(73,809)624,856

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 profit (loss) totaling (73,809) million yen mainly consists of research and development costs of (31,446)
million yen pertaining to the fundamental research and element research of TEL and other general and administrative costs that do
not belong to reportable segments.
3. Segment profit (loss) is adjusted against income before income taxes in Consolidated Statements of Income.

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TOKYO ELECTRON

4. Impairment loss on fixed assets in reportable segments
The description of this section has been omitted as the amount was immaterial.
5. Amortization and balance of goodwill in reportable segments
As of and for the year ended March 31, 2023

(Millions of yen)
Semiconductor
Production Equipment

FPD Production
Equipment

Total Reportable
Segment

Amortization

168

-

168

Balance at end of the period

365

-

365

6. Income related to negative goodwill in reportable segments
None

18

TOKYO ELECTRONPer share information
Year ended
March 31, 2023
Net assets per share (Yen)

3,389.68

Net income per share (Yen)

1,007.82

Fully diluted net income per share (Yen)

1,003.86

Notes:
1. The Company implemented a 3-for-1 common stock split on April 1, 2023. “Net assets per share”, “Net imcome per share” and“Fully diluted net income per share” are calculated on the assumption that stock split was implemented at the beginning of theprevious fiscal year.
2. Net income per share and fully diluted net income per share are calculated based on the following elements.
Net income per share (Yen)
Net income attributable to owners of parent (Millions of yen)

471,584

Net income not pertaining to owners of common stock (Millions of yen)-

Net income attributable to owners of parent pertaining to common stock(Millions of yen)

471,584

The average number of common stock (Thousands of share)

467,926

Fully diluted net income per share (Yen)The adjustments to net income attributable to owners of parent (Millions of yen)-

Increase in common stock (Thousands of share)

1,843[Share subscription rights (Thousands of share)][1,843]

Details of dilutive shares, not included in the computation of fully diluted
net income per share as there is no dilution effect.

㻙

3. The shares of the Company held by "Executive compensation Board Incentive Plan (BIP) trust" and "share-delivering Employee
Stock Ownership Plan (ESOP) trust", which are recorded in “Treasury stock, at cost” under shareholders’ equity, are included in thetreasury stock which is deducted from the number of shares issued and outstanding as of the end of the period when calculating
net assets per share. The shares held by the trusts are also included in the treasury stock which is deducted from the number ofshares used to calculate the average number of shares outstanding in the period when calculating net income per share and fully
diluted net income per share.
The number of treasury shares deducted in the calculation of net assets per share was 1,502 thousand shares as of the end of thisfiscal year, and the average number of treasury shares deducted in the calculation of net income per share and fully diluted net
income per share was 1,614 thousand shares in this fiscal year.

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TOKYO ELECTRON

Significant subsequent events
1. Stock split and corresponding partial amendment to the Articles of Incorporation
The Company implemented a stock split and made a corresponding partial amendment to the Articles of Incorporation on April 1, 2023, in accordancewith the resolution of its Board of Directors on February 9, 2023.
(1) Purpose of stock split
By implementing the stock split to lower the minimum investment, the Company intends to make shares more affordable for investors,
with a view to expanding the investor base.
The Company recognizes that transitioning to a share price per unit within the ideal range recommended by the Tokyo Stock Exchange(between 50,000 yen and 500,000 yen) would be useful in terms of encouraging market participation by individual investors. Going forward,
the Company will continue to comprehensively consider future stock market trends, the price and liquidity of the Company shares, and changes
to the shareholder structure.
(2) Overview of stock split(i) Split method
The Company split the shares of common stock owned by shareholders recorded in the final register of shareholders as of March 31, 2023,
in the proportion of 1 share into 3 shares.
(ii) Number of shares increased through stock split
Total number of issued shares before stock split:

157,210,911 shares

Number of shares increased through stock split:

314,421,822 shares

Total number of issued shares after stock split:

471,632,733 shares

Total number of authorized shares after stock split:

900,000,000 shares(iii) Schedule of stock split
Date of public notice of record date:

March 16, 2023

Record date:

March 31, 2023

Effective date:

April 1, 2023(iv) Effect on per share information
The effect on per share information is described in "Per share information".
(3) Partial amendment to the Articles of Incorporation(i) Reason for amendment
In accordance with the provisions of the Article 184, Paragraph 2 of the Companies Act, the Company changed the total number of authorizedshares stipulated in Article 6 of the Articles of Incorporation as of April 1, 2023, in response to the implementation of the stock split.
(ii) Details of amendment
The details of amendment are as follows.
(Amended parts are underlined)
Current Articles of Incorporation

Amended Articles of Incorporation

Article 6 Total Number of Authorized Shares

Article 6 Total Number of Authorized Shares

The total number of shares the Company is authorized toissue shall be three hundred million (300,000,000) shares.

The total number of shares the Company is authorized toissue shall be nine hundred million (900,000,000) shares.

(iii) Schedule of amendment
Effective date of amendment of the Articles of Incorporation:

April 1, 2023

(4) Other
Dividends
As the effective date of the stock split was April 1, 2023, year-end dividends for the fiscal year ended March 2023, to all shareholders with a record
date of March 31,2023, will be implemented based on the number of shares issued prior to the stock split.

20

TOKYO ELECTRON

2. Share repurchase
At the Board of Directors meeting held on May 11, 2023, the Company resolved to acquire its own shares under the provisions of its
Articles of Incorporation pursuant to paragraph 1, Article 459 of the Companies Act, as follows.
(1) Reason for acquisition of own shares
The Company intends to acquire its own shares in accordance with its capital policy while taking into account its current cash position andgrowth investment capital for medium- to long-term revenue growth.
(2) Details of acquisition(i) Type of shares to be acquired:(ii) Total number of shares to be acquired:

Shares of common stock
Up to 10 million shares(Equivalent to 2.1% of outstanding shares excluding treasury stock)(iii) Total cost of acquisition:

Up to 120 billion yen(iv) Period of acquisition:

From June 1, 2023 to December 31, 2023(v) Method of acquisition:

Acquisition through market transactions on the Tokyo Stock Exchange

21