TOKYO ELECTRON

Summary of Consolidated Financial Results for the Third Quarter Ended
December 31, 2023 (Japanese GAAP)

February 9, 2024

Name of Listed Company: Tokyo Electron Limited
Security Code:

8035

URL:

https://www.tel.com

Stock Exchange Listing: Tokyo

Representative:

Toshiki Kawai, Representative Director, President & CEO

Contact:

Akifumi Matsumura, 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)
Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Nine Months Ended December 31, 2023 (April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Nine months ended
December 31, 2022

December 31, 2023%

Net sales (Millions of yen)

1,650,729

14.7%
1,283,234(22.3)

Operating income (Millions of yen)

464,9368.0

311,038(33.1)

Ordinary income (Millions of yen)

470,2298.5

315,964(32.8)Net income attributable to owners of parent (Millions of yen)

352,92013.8

239,024(32.3)Net income per share of common stock (Yen):
Basic

754.44514.17

Diluted751.34512.46Comprehensive income:Nine months ended December 31, 2023:

295,722 million yen, (12.1)%

Nine months ended December 31, 2022:

336,308 million yen, (5.6)%

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, 2023

December 31, 2023

Total assets (Millions of yen)

2,311,594

2,217,413

Total net assets (Millions of yen)

1,599,524

1,577,619

68.7

70.5

Equity ratio (%)
Equity:1,563,952 million yen (as of December 31, 2023)
1,587,595 million yen (as of March 31, 2023)

2. Dividends
Year ended

Year ending

March 31, 2023

March 31, 2024

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

2Q-end dividends per share (Yen)857.00148.00--Year-end dividends per share (Yen)854.00219.00 (Forecast)

Annual dividends per share (Yen)

1,711.00

367.00 (Forecast)

3Q-end dividends per share (Yen)

Notes: Revision to the dividends forecast most recently announced: Yes
Notes: 1. The Company implemented a 3-for-1 common stock split on April 1, 2023. For the fiscal year ended March 31, 2023, theNotes:

actual amount of dividends prior to the stock split are presented. For the fiscal year ending March 31, 2024, theNotes:

numbers after the stock split are presented. For reference, annual dividends for the fiscal year ending March 31,

Notes:

2024 without considering the stock split are 1,101 yen.

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

200 yen.

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TOKYO ELECTRON

3. Consolidated Financial Forecasts for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
Note: Percentages for the year ending March 31, 2024 indicate changes from the previous fiscal year.
Year ending
March 31, 2024%
Net sales (Millions of yen)

1,830,000(17.2)

Operating income (Millions of yen)

445,000(28.0)

Ordinary income (Millions of yen)

450,000(28.0)Net income attributable to owners of parent (Millions of yen)

340,000(27.9)Net income per share (Yen)732.16

Note: Revision to the financial forecasts most recently announced: Yes
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 10 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 December 31, 2023:

471,632,733 shares

As of March 31, 2023:

471,632,733 shares

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

8,728,221 shares

As of March 31, 2023:

3,272,016 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Nine months ended December 31, 2023:

464,873,921 shares

Nine months ended December 31, 2022:

467,794,288 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". (1,386,586 shares as of December 31, 2023, 1,502,637 shares as

Notes:of March 31, 2023)

Notes:In addition, these Company’s shares are included in the treasury stock which is deducted in calculating the average number of 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 (4) Description of Financial Estimates Information such as Consolidated Financial Forecasts" on page 5.
The Company plans to hold an online conference for investors and analysts on February 9, 2024.
Supplementary materials to be used at the conference will be posted 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
With respect to the global economy during the first three quarters of the current fiscal year, surges in raw material andenergy prices have moderated, while various goods prices have continued to rise when compared to the previous
fiscal year. In addition, while policy interest rate hikes, mainly in Europe and the United States, have slowed the yen
depreciation levels continued.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, the imbalance between semiconductor
supply and demand has improved during the first three quarters of the current fiscal year, driven by semiconductor
manufacturers adjusting their inventories by curtailing production from the second half of the previous fiscal year due
to the decline in the demand for final products such as PCs and smartphones.
Consequently, capital investment in semiconductor production equipment, which was entering an adjustment phase,showed signs of bottoming out during the first three quarters of the current fiscal year. Although capital investment insemiconductors meant for memory and cutting-edge logic/foundry has generally been on the decline, inquiries about
advanced package equipment for generative AI applications are increasing. In addition, capital investment in China,
which aims to improve their semiconductor self-sufficiency rate, for the mature generations of semiconductors used
for IoT, automotive, and industrial applications, continued their strong growth trend from the previous fiscal year.
Considering the transition to a data society and efforts toward realizing a decarbonized society stemming from the
expansion of information and communication technology, the role of semiconductors in supporting electronic devices
and the importance of their technological innovation is increasing. Therefore, further growth is expected in thesemiconductor production equipment market in the medium- to long-term.
As a result, the consolidated financial results (cumulative) for the third quarter of the current fiscal year were net salesof 1,283,234 million yen (year-on-year decrease of 22.3%), operating income of 311,038 million yen (year-on-year
decrease of 33.1%), ordinary income of 315,964 million yen (year-on-year decrease of 32.8%), and net income
attributable to owners of parent of 239,024 million yen (year-on-year decrease of 32.3%).
From the first quarter of the current fiscal year, information by segment has been omitted, due to the change of thereportable segments to a single segment of "Semiconductor Production Equipment". For details, please refer to “Notes”
on page 10 for further information.

(2) Description of Financial Conditions
Current assets at the end of the third quarter of the current fiscal year were 1,537,522 million yen, a decrease of
203,437 million yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 130,858
million yen in cash and deposits, and a decrease of 129,830 million yen in notes and accounts receivable - trade, andcontract assets.
Property, plant and equipment increased by 58,640 million yen from the end of the previous fiscal year, to 317,729
million yen.
Intangible assets increased by 1,487 million yen from the end of the previous fiscal year, to 30,046 million yen.
Investments and other assets increased by 49,129 million yen from the end of the previous fiscal year, to 332,115
million yen.
As a result, total assets decreased by 94,180 million yen from the end of the previous fiscal year, to 2,217,413 million
yen.
Current liabilities decreased by 72,886 million yen from the end of the previous fiscal year, to 557,006 million yen. This
was largely due to a decrease of 32,028 million yen in trade notes and accounts payable, and a decrease of 30,720
million yen in income taxes payable.
Long-term liabilities increased by 611 million yen from the end of the previous fiscal year, to 82,787 million yen.
Net assets decreased by 21,905 million yen from the end of the previous fiscal year, to 1,577,619 million yen. This
was largely due to a decrease resulting from the payment of 202,457 million yen in year-end dividends for the previous
fiscal year, and interim dividends for the current fiscal year, a decrease resulting from the purchase of treasury stock3

TOKYO ELECTRON

of 120,028 million yen, an increase of 239,024 million yen resulting from recording net income attributable to ownersof parent, an increase of 40,332 million yen in net unrealized gains on investment securities, and an increase of 16,495
million yen in foreign currency translation adjustments. As a result, the equity ratio was 70.5%.

(3) Description of Cash Flows
Cash and cash equivalents at the end of the third quarter of the current fiscal year decreased by 130,985 million yen
compared to the end of the previous fiscal year, to 341,486 million yen. The combined balance including 10,917 million
yen in time deposits and short-term investments with maturities of more than three months that are not included in
cash and cash equivalents was 352,403 million yen, a decrease of 120,697 million yen from the end of the previous
fiscal year. The overall situation regarding cash flows during the third quarter of the current fiscal year was as described
below.
Cash flows from operating activities were positive 295,669 million yen, a decrease of 20,954 million yen compared tothe same period of the previous fiscal year. The major positive factors were 315,579 million yen in income before
income taxes, a 137,069 million yen decrease in notes and accounts receivable - trade, and contract assets, and a
91,176 million yen decrease in prepaid consumption tax. The major negative factors were 118,456 million yen increase
in inventories, and a 115,468 million yen in payment of income taxes.
Cash flows from investing activities were negative 104,804 million yen compared to negative 33,709 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 87,276 million yen for the purchase ofproperty, plant and equipment.
Cash flows from financing activities were negative 324,358 million yen compared to negative 255,963 million yen in
the same period of the previous fiscal year. This was largely due to the payment of 202,457 million yen in dividends,
and the payment of 120,028 million yen for the purchase of treasury stock.

Consolidated Statements of Cash Flows (Summary)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Net decrease (increase) in notes and accounts receivable - trade,and contract assets
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 (Purchase of long-term assets, and others)
Cash flows from financing activities
Purchase of treasury stock
Other (Dividends paid, and others)
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Cash and cash equivalents, time deposits and short-term investmentswith maturities of more than three months

4

Nine months ended
December 31, 2022
316,624469,218
30,881(Millions of yen)
Nine months ended
December 31, 2023
295,669
315,579
36,990(16,259)

137,069(154,382)(14,045)
1,211(33,709)
19,936(53,645)(255,963)(1,717)(254,245)
9,154
36,106335,648
371,754(118,456)(35,694)(39,819)(104,804)(10,088)(94,715)(324,358)(120,028)(204,330)
2,508(130,985)
472,471
341,486

387,457

352,403

TOKYO ELECTRON(4) Description of Financial Estimates Information such as Consolidated Financial Forecasts
Based on the most recent trends in facilities investments by our customers and the most recent trends in financial
results, we would like to amend the consolidated financial forecasts for the full year announced on November 10,
2023, as follows.

Consolidated Financial Forecasts for the Year Ending March 31, 2024
(Billions of yen)Previous forecast
Revised forecast(November 10, 2023)
1,830.0(17.2)%
1,730.0
445.0(28.0)%
401.0
450.0(28.0)%
404.0
340.0(27.9)%
307.0

Net Sales
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent

Note: Percentages indicate changes from the same period of the previous fiscal year.
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 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, 2023

December 31, 2023

ASSETS
Current assets
Cash and deposits

473,099342,241

Notes and accounts receivable - trade, and contract assets

464,889

335,059

0

10,162

236,795

293,346

Securities
Merchandise and finished goods
Work in process

161,938

170,085

Raw materials and supplies

253,474

314,608

Others150,946

72,175

(184)

(156)

1,740,959

1,537,522

259,088317,729

Others28,55930,046

Total intangible assets

28,55930,046

Investment securities

165,507224,021

Others118,819

109,469(1,340)(1,376)282,986

332,115570,634

679,891

2,311,594

2,217,413

Allowance for doubtful accounts
Total current assets
Long-term assets
Property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total long-term assets
Total assets

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TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2023

December 31, 2023

LIABILITIESCurrent liabilities
Trade notes and accounts payable

116,317

84,288

Income taxes payable

71,17740,456

Customer advances

289,169

312,633

Accrued warranty expenses

34,382

33,101Other allowances

46,942

20,101Others71,904

66,425

Total current liabilities

629,893557,006

Long-term liabilities
Other allowances

3,189

3,050

Net defined benefit liabilities

60,366

58,957

Others

18,618

20,778

Total long-term liabilities

82,17582,787712,069

639,793

54,961

54,961

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,01178,011

1,322,203

1,356,151

Treasury stock, at cost

(22,033)(136,322)

Total shareholders' equity

1,433,141

1,352,800

107,452

147,785(46)

88

43,091

59,587Retained earnings

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

3,954

3,690

Total accumulated other comprehensive income (loss)

154,453

211,151

11,92913,667

1,599,524

1,577,619

2,311,594

2,217,413

Share subscription rights
Total net assets
Total liabilities and net assets

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TOKYO ELECTRON

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

Nine months ended

December 31, 2022

December 31, 2023

1,650,729

1,283,234

Cost of sales

918,010709,080

Gross profit

732,718

574,153

Research and development expenses

137,427

144,468

Others130,353

118,646

Total selling, general and administrative expenses

267,781

263,115464,936

311,038

Share of profit of associates accounted for using the equity method

1,995

2,401

Others

5,049

6,246

Total non-operating income

7,045

8,648

759

2,811

Net sales

Selling, general & administrative expenses

Operating income
Non-operating income

Non-operating expenses
Foreign exchange loss
OthersTotal non-operating expenses
Ordinary income

993

910

1,753

3,722

470,229

315,964

Unusual or infrequent profit
Gain on sales of long-term assets

4

10

Total unusual or infrequent profit

4

10

Loss on disposal and sales of long-term assets

576

395

Loss on impairment of property, plant and equipment, goodwill
and other assets

438

-

1,015

395

Income before income taxes

469,218

315,579

Income taxes

116,297

76,555

Net income

352,920

239,024

Net income attributable to owners of parent

352,920

239,024

Unusual or infrequent loss

Total unusual or infrequent loss

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TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Nine months ended

Nine months ended

December 31, 2022

December 31, 2023

352,920

239,024

Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities(27,335)

40,312Foreign currency translation adjustments

10,803

16,353Remeasurements of defined benefit plans

(292)

(258)

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

212

291

(16,612)56,698336,308

295,722336,308

295,722

Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

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TOKYO ELECTRON

Notes
Going concern: None
Significant changes in Shareholders' Equity: Yes
The Company executed the purchase of treasury stock based on the resolution of its Board of Directors dated May 11, 2023. Mainly due tothis purchase, the amount of treasury stock increased by 114,288 million yen for the nine months ended December 31, 2023, and resulted in
136,322 million yen as of December 31, 2023.
Changes in significant subsidiaries during the period: None
Adoption of special accounting methods for preparation of quarterly financial statements: Yes
The Company and 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
Segment information
Nine months ended December 31, 2023 (April 1, 2023 to December 31, 2023)
The description of this section has been omitted as TEL Group has a single segment of semiconductor production equipment (SPE).
Changes in reportable segments
While reportable segments of TEL Group were previously classified into SPE and flat panel display (FPD) production equipment, thosesegments have been changed into a single segment of SPE from the first quarter of the current fiscal year.
This change is due to the judgement that, based on facts that the impact from the FPD production equipment business has become
insignificant while SPE market has made steady growth and is expected to grow higher in future and TEL Group implemented a corporate
reorganization that combined the FPD production equipment business into the SPE business from April, 2023 for the purpose of efficient
resource utilization, disclosing them as a single segment of SPE will more appropriately reflect the management condition of TEL Group
from the viewpoint of the business development and the decision-making process for allocating management resources of TEL Group.
As a result of this change, the description of segment information for the nine months ended December 31, 2023 has been omitted.

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