TOKYO ELECTRON ANNUAL REPORT 2017

PAGE22CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Interview with the CEO
Message from the CFO

Review of Operations
and Business Outlook

Corporate Governance
CSR-Oriented Operations

Corporate Data

Financial Section

Financial Review
Consolidated Eleven-Year Summary
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Balance Sheets
Consolidated Statements of Changes in Net Asset
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

Consolidated Balance Sheets
Tokyo Electron Limited and Subsidiaries
As of March 31, 2017 and 2016
Thousands of
U.S. dollars

Millions of yen

ASSETS

2017

2016

2017

Current assets:

Thousands of
U.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2017

2016

2017

¥ 79,217¥ 55,050$ 706,100

Current liabilities:

Cash and cash equivalents

¥164,366¥ 95,638$1,465,075

Trade notes and accounts payable

Short-term investments

151,000

141,035

1,345,931

Income taxes payable

31,06922,461

276,935

Trade notes and accounts receivable

133,858

116,503

1,193,138

Accrued employees’ bonuses

21,853

11,624

194,793(63)

(48)

(569)

Customer advances

67,97633,523605,900

Inventories

236,256

195,080

2,105,861

Other accrued expenses and other current liabilities

47,65343,403424,756

Deferred income taxes

36,892

31,204

328,837

247,770

166,061

2,208,486

Prepaid expenses and other current assets

53,62838,004

478,012775,938

617,416

6,916,286

Net liablitiy for defined benefits

56,20055,677500,942

Other liabilities

7,476

7,391

66,640   Total non-current liabilities

63,67763,068567,583  Total liabilities

311,447

229,129

2,776,069  Common stock   Authorized: 300,000,000 shares
Issued: 165,210,911 and 165,210,911 shares
as of March 31, 2017 and 2016, respectively

54,961

54,961

489,893  Capital surplus

78,02378,023

695,455  Retained earnings

503,325

427,618

4,486,369(7,766)(8,051)(69,227)

10,788

7,903

96,166

59

50

527

Allowance for doubtful accounts   Total current assets

Property, plant and equipment:Land

24,85523,868

221,545

Buildings

145,901

147,653

1,300,489

Machinery and equipment

132,043

129,169

1,176,965

Construction in progress

6,026

3,774

53,713308,826

304,464

2,752,713

Less: Accumulated depreciation

208,385

208,147

1,857,436   Net property, plant and equipment

100,441

96,317895,277   Total property, plant and equipment   Total current liabilities
Non-current liablities:

Net assets:
Shareholders’ equity   Treasury stock, at cost   1,135,104 and 1,176,800 shares
as of March 31, 2017 and 2016, respectively
Accumulated other comprehensive income

Investments and other assets:
Investment securities24,119

19,914

214,983   Net unrealized gains on investment securities

Deferred income taxes

19,12820,782

170,505   Net deferred gains on hedging instruments

Net asset for defined benefits

4,818

1,623

42,949   Foreign currency translation adjustments

5,789

6,743

51,603

Intangible assets

15,401

17,603

137,280   Accumulated remeasurements of defined benefit plans

(2,086)(4,878)(18,597)

Other assets

19,416

21,538173,067

Share subscription rights

2,620

1,641

23,356

Allowance for doubtful accounts

(1,816)(1,825)(16,192)

Non-controlling interests

284

229

2,540

   Total investments and other assets

81,067

79,635722,593   Total net assets

645,999564,239

5,758,088¥957,447¥793,368$8,534,157

Total liabilities and net assets

¥957,447¥793,368$8,534,157

Total assets
See accompanying Notes to Consolidated Financial Statements.

TOKYO ELECTRON ANNUAL REPORT 2017

PAGE

23CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Interview with the CEO
Message from the CFO

Review of Operations
and Business Outlook

Corporate Governance
CSR-Oriented Operations

Corporate Data

Financial Section

Financial Review
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Asset
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2017 and 2016

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2017 and 2016
Thousands ofU.S. dollars

Millions of yen

Net sales
Cost of sales Gross profit
Selling, general and administrative expenses
Operating income

2017

2016

2017

¥799,719
477,427
322,291
166,594
155,697¥663,949
396,739
267,210
150,421116,789$7,128,260
4,255,528
2,872,732
1,484,933
1,387,798

1,032

856

9,204

342
300
(791)
55
6
—
(7,521)

326
297
886
1,025
446
(662)
—

3,056
2,677
(7,055)491
56—(67,039)

Other income (expenses):
Interest and dividend income Share of profit of associates accounted for using
the equity method
Insurance dividend income
Foreign exchange gain (loss), net
Gain on sales of property, plant and equipment
Gain on sales of investment securities
Commission for purchases of treasury stocks
Loss on disaster Loss on impairment of property, plant and equipment, goodwill
and other assets
Loss on business restructuring
Other, net
Income before income taxes

(362)(9,727)(3,235)—357
149,116(2,235)(1,534)
106,467—
3,183
1,329,138

Income taxes:
Current
DeferredNet income

40,633(6,765)
115,248

32,560(4,029)77,936362,182(60,304)
1,027,260

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

39¥115,208

44¥ 77,892

352$1,026,908

Yen

Per share of common stock:
Net income — basic
Net income — diluted
Net assetsCash dividends
See accompanying Notes to Consolidated Financial Statements.

¥ 702.26
700.35
3,919.50
352.00U.S. dollars¥ 461.10
460.003,428.37
237.00$ 6.26
6.24
34.94
3.14

Thousands ofU.S. dollars

Millions of yen

Net income
Other comprehensive income (loss):
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments
Foreign currency translation adjustments
Remeasurements of defined benefit plans Share of other comprehensive income of associates accounted
for using the equity method
Total other comprehensive income (loss)
Comprehensive income 
Total comprehensive income attributable to:
Owners of parent
Non-controlling interests
See accompanying Notes to Consolidated Financial Statements.

2017

2016

2017

¥115,248¥77,936$1,027,260

2,875
10(933)
2,682(1,556)(112)(5,706)(9,233)25,62997(8,317)
23,911

114
4,750
119,998(345)(16,952)
60,984

1,021
42,342
1,069,603

119,94256

60,96222

1,069,098
505

TOKYO ELECTRON ANNUAL REPORT 2017

PAGE

24

CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Interview with the CEO
Message from the CFO

Review of Operations
and Business Outlook

Corporate Governance
CSR-Oriented Operations

Corporate Data

Financial Section

Financial Review
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Asset
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flow

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2017 and 2016

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2017 and 2016
Thousands ofU.S. dollars

Millions of yen
Shareholders’ equity

Commonstock

CapitalsurplusRetainedearnings¥54,961¥78,023¥488,816

Cash dividends——(33,013)—

Net income attributable toowners of parent——

77,892

Repurchase of treasurystocks——

Disposal of treasury stocks——

Cancellation of treasury
stocks——Other, net——

Balance as of March 31, 2015

Balance as of March 31, 2016

Millions of yen

Accumulated other comprehensive income

Treasurystock

Net unrealized Net deferred
Foreign
Accumulated
gains ongains oncurrency
remeasurements
Shareinvestment
hedgingtranslation of defined benefit subscription
securities
instruments adjustments
plansrightsTotal
net assets¥258¥641,163¥122¥12,481¥ 4,682¥1,421——————(33,013)

—————

—

—

77,892— (105,810)

———

—

——

(105,810)

—

—

—

—

—

—

746

(726)

¥(9,064) ¥ 9,463

Noncontrollinginterests

1,472(105,351) 105,351

—

—

—

—

—

—

—

(1,560)(72)(5,738)(9,560)220(29)(16,739)¥427,618 ¥ (8,051) ¥ 7,903——¥54,961¥78,023¥ 50¥ 6,743¥(4,878)¥1,641229¥564,239

Cash dividends——(39,371)

—

—

—

—

—

—

—

(39,371)

Net income attributable toowners of parent——

115,208

—

—

—

—

—

—

—

115,208

Repurchase of treasury
stocks

—

—

—

(6)

——

————(6)

Disposal of treasury stocks——(130)

290

—

—

—

—

—

—

159

—

—

2,886

9(953)

2,791

979¥503,325 ¥ (7,766) ¥10,788¥ 59¥ 5,789¥(2,086)¥2,620

Other, net
Balance as of March 31, 2017——

¥54,961¥78,023

¥

¥

56

5,769

284

¥645,999

Thousands of U.S. dollars
Shareholders’ equity

Commonstock

Balance as of March 31, 2016

Capitalsurplus

Accumulated other comprehensive income

Retainedearnings

Treasurystock

Net unrealized Net deferred
Foreign
Accumulated
gains ongains oncurrencyremeasurements
Shareinvestment
hedgingtranslation of defined benefit subscription
securities
instruments adjustments
plansrightsTotal
net assets$446$60,101$(43,477)$14,628$2,034$5,029,317

Cash dividends——(350,931)

—

—

—

—

—

—

—

(350,931)

Net income attributable toowners of parent—— 1,026,908

—

—

—

—

—

—

—

1,026,908

Repurchase of treasury
stocks

—

—

—

(54)

—

—

—

—

—

—

(54)

Disposal of treasury stocks——(1,159)

2,585

—

—

—

—

—

—

1,425

—

—

—

—

25,72681(8,498)

24,8808,727

505

51,422$489,893 $695,455 $4,486,369 $(69,227) $96,166$527$51,603$(18,597)$23,356$2,540$5,758,088

Other, net
Balance as of March 31, 2017

$489,893 $695,455 $3,811,552 $(71,758) $70,440

Noncontrollinginterests

See accompanying Notes to Consolidated Financial Statements.

Cash flows from operating activities:
Income before income taxes 
Depreciation and amortization
 Loss on impairment of property, plant and equipment,
goodwill and other assets
Amortization of goodwill
Increase (decrease) in accrued employees’ bonuses
Interest and dividend income
Loss on sales of affiliates’ shares
Increase in trade notes and accounts receivable
Increase in inventories
Increase in trade notes and accounts payable
Increase in prepaid consumption tax
Increase (decrease) in customer advances
Other, net
Subtotal
Receipts from interest and dividends
Income taxes paidNet cash provided by operating activities
Cash flows from investing activities:
Payment for purchases of short-term investments
Proceeds from maturities of short-term investments
Payment for purchases of property, plant and equipment
Payment for acquisition of intangible assets
Other, netNet cash used in investing activities
Cash flows from financing activities:
Payment for purchases of treasury stock
Dividends paid
Other, net
Net cash used in financing activities
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 year
Cash and cash equivalents at end of year
See accompanying Notes to Consolidated Financial Statements.

2017

2016

2017

¥149,116
17,872¥106,467
19,257$1,329,138159,310

362
631
10,112(1,032)—(17,411)(44,102)
24,053(12,350)
34,444
6,607
168,304
1,266(32,622)
136,948

9,727
970
(283)
(856)
1,111
(8,650)(23,535)
31(1,910)(15,004)(3,527)
83,798957(15,357)
69,3983,235
5,625
90,140(9,204)—(155,200)(393,102)
214,401(110,084)
307,023
58,8931,500,176
11,291(290,779)
1,220,687(202,200)
192,232(17,557)(1,116)(252)(28,893)(209,491)
68,505(11,294)
(708)
2,974
(150,014)(1,802,299)
1,713,456(156,498)(9,952)(2,248)(257,543)(6)(39,371)(2)(39,380)53
68,72895,638¥164,366(105,532)(33,013)(56)(138,601)(2,777)(221,994)
317,632¥ 95,638(54)(350,931)(26)(351,012)
473
612,605
852,469$1,465,075