TOKYO ELECTRON

Summary of Consolidated Financial Results for the First Quarter Ended June 30, 2021
(Japanese GAAP)
August 16, 2021
Name of Listed Company: Tokyo Electron Limited
Security Code:

Stock Exchange Listing: Tokyo

8035

URL:

https://www.tel.com

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 Three Months Ended June 30, 2021 (April 1, 2021 to June 30, 2021)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Three months ended
June 30, 2020

June 30, 2021%

Net sales (Millions of yen)%

314,82345.5

452,049

43.6

Operating income (Millions of yen)

73,84973.6

141,791

92.0

Ordinary income (Millions of yen)

75,08968.4

142,630

89.9

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

56,45277.0

100,36377.8

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

362.98645.20

Diluted360.87641.70Comprehensive income:Three months ended June 30, 2021 : 110,712 million yen, 60.1%
Three months ended June 30, 2020 : 69,131 million yen, 155.4%

Note: From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue
Note: Recognition” (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended June 30, 2021 includes
Note: the effects of the new standards. Percentages of changes are based on consolidated financial results without theNote: effects of the new standards of the same period of the previous fiscal year.
(2) Consolidated Financial Position
As ofMarch 31, 2021

June 30, 2021

Total assets (Millions of yen)

1,425,364

1,450,835

Total net assets (Millions of yen)

1,024,562

1,072,005

71.1

72.9

Equity ratio (%)
Equity:1,057,259 million yen (as of June 30, 2021)
1,012,977 million yen (as of March 31, 2021)

Note: From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue
Note: Recognition” (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended June 30, 2021 includes
Note: the effects of the new standards.
2. Dividends
Year ended

Year ending

March 31, 2021

March 31, 2022
(Forecast)

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

2Q-end dividends per share (Yen)

360.00562.00--Year-end dividends per share (Yen)

421.00627.00

Annual dividends per share (Yen)

781.001,189.00

3Q-end dividends per share (Yen)

Note: Revision to the dividends forecast most recently announced: Yes
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TOKYO ELECTRON

3. Financial Forecasts for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)
Note: Percentages for year ending March 31, 2022 indicate changes from the previous fiscal year, and those for six months ending
September 30, 2021 indicate changes from the same period of the previous fiscal year.
Six months ending

Year ending

September 30, 2021

March 31, 2022

(Cumulative)%%

Net sales (Millions of yen)

900,000

34.7

1,850,000

32.2

Operating income (Millions of yen)

245,000

66.2

508,000

58.4

Ordinary income (Millions of yen)

245,000

65.3

508,000

57.7

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

175,000

56.2

370,000

52.3

Net income per share (Yen)

1,124.99

2,378.53

Note: Revision to the financial forecasts most recently announced: Yes
From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31, 2020). Financial forecasts above include the effects of the new standards. Percentages ofchanges are based on consolidated financial results without the effects of the new standards of the same period of the previous
fiscal year.
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 11 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: Yes
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None
Please refer to "Notes" on page 11 for further information.
(4) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of June 30, 2021 :

157,210,911 shares

As of March 31, 2021:

157,210,911 shares

2. Number of shares of treasury stock
As of June 30, 2021 :

1,651,904 shares

As of March 31, 2021:

1,659,611 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Three months ended June 30, 2021:

155,555,388 shares

Three months ended June 30, 2020:

155,526,131 shares

Note: The number of shares of treasury stock includes the Company’s shares held by "Executive compensation Board Incentive Plan (BIP) trust"and "share-delivering Employee Stock Ownership Plan (ESOP) trust". (614,858 shares as of June 30, 2021, 615,237 shares as of March 31, 2021)
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 6.
The Company plans to hold an online conference for investors and analysts on August 16, 2021. Supplementary materials
to be used at the conference will be posted on the Company's website.
2

TOKYO ELECTRON

1. Qualitative Information on Financial Results for the Current Quarter
From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue
Recognition” (ASBJ Statement No. 29, March 31, 2020). Comparisons between the same period in the previous year
and the end of the previous fiscal year in the explanation of operating results, financial positions, and cash flows is
calculated based on the consolidated results of the previous fiscal year prior to the application of the change inaccounting standards.
For details, please refer to "Notes" on page 11 for further information.

(1) Description of Operating Results
Despite the affects of the COVID-19 pandemic, the global economy for the first quarter trended towards recovery as
economic policies undertaken by various nations take effect. In the electronics industry, where the Tokyo Electron(TEL) Group operates, the expansion of the semiconductor production equipment market is accelerating as demand
for semiconductors increases, driven by the transition to a data society due to the expansion of the use ofcommunications technologies such as IoT, AI and 5G. Although it will be necessary to continue to monitor the impact
of COVID-19, the market for semiconductor production equipment is expected to grow further.
Under these circumstances, the consolidated financial results (cumulative) for the first quarter of the current fiscal year
were net sales of 452,049 million yen (year-on-year growth of 43.6%), operating income of 141,791 million yen (yearon-year growth of 92.0%), ordinary income of 142,630 million yen (year-on-year growth of 89.9%), and net income
attributable to owners of parent of 100,363 million yen (year-on-year growth of 77.8%).

The overview of each business segment is as described below.

(i) Semiconductor Production Equipment
Capital investment in semiconductors for logic/foundry has been robust in a wide range of areas, from cutting-edge tomature generations of semiconductors, thanks to an increase in global demand for semiconductor devices of all types
and applications. In addition, strong, capital investment in DRAM continued from the previous quarter, due toimprovements in the balance between supply and demand that began at the end of last year and has continued
through the start of this year. Furthermore, capital investment in NAND flash memory, which recovered significantly
during the previous fiscal year, continued to see high investment levels in the current fiscal year as well. Consequently,
net sales to external customers in this segment for the first quarter of the current fiscal year were 437,924 million yen(year-on-year growth of 44.2%).

(ii) 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. In addition, capital investments for small and medium-sized OLED
panels remained at high levels, continuing from the previous quarter. As displays installed in end products
transitioned from LCD panels to OLED panels, demand for small and medium-sized displays, such as those found in
mobile devices, is increasing. Consequently, net sales to external customers in this segment for the first quarter of thecurrent fiscal year were 14,090 million yen (year-on-year growth of 27.9%).

(iii) Other
Net sales to external customers in this segment for the first quarter of the current fiscal year were 35 million yen (yearon-year decrease of 4.9%).

3

TOKYO ELECTRON(For reference）
Consolidated Operating
Operating Results
Results
Consolidated

Net Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia, and Others
FPD Production Equipment
Other
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent(Millions of yen)
FY 2021
Full Year

1Q

2Q

3Q

4Q

1,399,102
1,315,200
195,821152,057
63,502279,938
245,637
325,844
52,397
83,772
129
320,685
322,103242,941

314,823
303,772
49,15042,343
15,77467,01350,92673,957
4,605
11,01337
73,84975,08956,452

353,337
331,684
56,85244,00916,311
72,19953,914
79,123
9,274
21,62329
73,57973,13855,559291,725
264,305
36,14934,501
12,79739,31852,51370,541
18,48327,38831
62,86862,424
46,167439,216
415,438
53,66931,202
18,619101,40788,283102,222
20,03323,74731
110,388
111,451
84,761

FY 20221Q
452,049
437,924
54,861
43,911
13,411
95,30462,853
153,684
13,897
14,09035
141,791
142,630
100,363

Note: Intersegment sales or transfers are eliminated.

(2) Description of Financial Conditions
Current assets at the end of the first quarter of the current fiscal year were 1,022,727 million yen, an increase of 7,030
million yen compared to the end of the previous fiscal year. This was mainly due to an increase of 62,313 million yen
in notes and accounts receivable - trade, and contract assets, an increase of 35,189 million yen in cash and deposits,a decrease of 58,006 million yen in prepaid consumption tax, and a decrease of 28,395 million yen in inventories.
Tangible fixed assets increased by 3,450 million yen from the end of the previous fiscal year, to 200,418 million yen.
Intangible fixed assets increased by 1,361 million yen from the end of the previous fiscal year, to 18,525 million yen.
Investments and other assets increased by 13,628 million yen from the end of the previous fiscal year, to 209,164
million yen.
As a result, total assets increased by 25,471 million yen from the end of the previous fiscal year, to 1,450,835 million
yen.
Current liabilities decreased by 24,600 million yen from the end of the previous fiscal year, to 303,060 million yen. This
was largely due to a decrease of 16,825 million yen in accrued employees’ bonuses, and a decrease of 8,722 million
yen in customer advances.
Long-term liabilities increased by 2,629 million yen from the end of the previous fiscal year, to 75,769 million yen.
Net assets increased by 47,442 million yen from the end of the previous fiscal year, to 1,072,005 million yen. This waslargely due to an increase of 100,363 million yen in net income attributable to owners of parent, a decrease resulting
from the payment of 65,746 million yen in year-end dividends for the previous fiscal year, and an increase of 8,437
million yen in net unrealized gains on investment securities. As a result, the equity ratio was 72.9%.

(3) Description of Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year increased by 35,133 million yen
compared to the end of the previous fiscal year, to 301,126 million yen. The combined balance including 40,616 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 341,742 million yen, an increase of 30,189 million yen from the end of the previous
fiscal year. The overall situation regarding cash flows during the first quarter of the current fiscal year was as described
below.
Cash flows from operating activities were positive 111,289 million yen, an increase of 58,505 million yen compared tothe same period of the previous fiscal year. The major positive factors were 138,033 million yen in income before

4TOKYO ELECTRON

income taxes, and a 58,018 million yen decrease in prepaid consumption tax. The major negative factors were 43,951
million yen in payment of income taxes, a 20,578 million yen increase in inventories, and a 16,867 million yen decreasein accrued employees’ bonuses.
Cash flows from investing activities were negative 10,762 million yen compared to positive 14,891 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 11,924 million yen for the purchase of
fixed assets.
Cash flows from financing activities were negative 65,981 million yen compared to negative 53,530 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 65,746 million yen in dividends.

Consolidated Statements of Cash Flows (Summary)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Net decrease (increase) in trade notes and accounts receivable,
and customer advances
Net decrease (increase) in notes and accounts receivable - trade,and contract assets, and customer advances
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 (Acquisition of fixed assets)
Cash flows from 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 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

5

Three months ended
June 30, 2020
52,78474,667
7,152(Millions of yen)Three months ended
June 30, 2021
111,289
138,033
7,934

11,452

ーー(21,140)(22,694)880(18,674)
14,891
30,000(15,108)(53,530)100
14,245247,959
262,204(20,578)
(784)
7,825
(10,762)
4,955(15,718)(65,981)587
35,133265,993
301,126

322,656

341,742TOKYO ELECTRON(4) Description of Financial Estimates Information such as Consolidated Financial Forecasts
The expansion of the semiconductor production equipment market is accelerating as demand for semiconductors
increases, driven by the transition to a data society due to the expansion of the use of communications technologies
such as IoT, AI and 5G. Based on the most recent trends in facilities investments by our customers and the mostrecent trends in results, we would like to amend the consolidated results projections for the first half of the current
fiscal year and full year announced on April 30, 2021 as follows.

Consolidated Forecast (Cumulative) for the First Half of the Year Ending March 31, 2022
Revised forecast
Net Sales
900.0
34.7%
Semiconductor Production Equipment
874.0
37.5%
FPD Production Equipment
26.0(20.3)%
Operating Income
245.0
66.2%
Ordinary Income
245.0
65.3%
Net Income Attributable to Owners of Parent
175.0
56.2%
Notes:*1. Percentages indicate changes from the same period of the previous fiscal year.
*2. Intersegment sales or transfers are eliminated.

(Billions of yen)Previous forecast(April 30, 2021)
840.0
814.0
26.0
218.0
218.0
163.0

Consolidated Forecast for the Year Ending March 31, 2022
Revised forecast
Net Sales
1,850.0
32.2%
Semiconductor Production Equipment
1,793.0
36.3%
FPD Production Equipment
57.0(32.0)%
Operating Income
508.0
58.4%
Ordinary Income
508.0
57.7%
Net Income Attributable to Owners of Parent
370.0
52.3%
Notes:*1. Percentages indicate changes from the same period of the previous fiscal year.
*2. Intersegment sales or transfers are eliminated.

(Billions of yen)Previous forecast(April 30, 2021)
1,700.0
1,643.0
57.0
442.0
442.0
330.0

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.

6

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2021

June 30, 2021

ASSETS
Current assets
Cash and deposits

186,538

Trade notes and accounts receivable

191,700

Notes and accounts receivable - trade, and contract assets

221,727-

254,013

Securities

125,014120,014Merchandise and finished goods

269,772

196,337

Work in process

80,742

121,326

Raw materials and supplies

64,82869,284

Others97,197

40,128

Allowance for doubtful accounts

(99)

(105)

1,015,696

1,022,727

196,967

200,418

Others17,163

18,525

Total intangible fixed assets

17,163

18,525

196,943

210,573(1,407)(1,409)195,536

209,164

Total current assets
Long-term assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total long-term assets
Total assets

7409,667

428,108

1,425,364

1,450,835

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2021

June 30, 2021

LIABILITIESCurrent liabilities
Trade notes and accounts payable

90,60690,182

Income taxes payable

49,272

41,479Customer advances

81,722

72,999Accrued warranty expenses

14,415

18,236

Accrued employees’ bonuses

34,254

17,429Other allowances

2,872

928

Others54,51661,804

Total current liabilities

327,661

303,060

Other allowances

3,834

4,134

Net defined benefit liabilities

62,137

61,636

Others

7,167

9,998

Long-term liabilities

Total long-term liabilities
Total liabilities

73,14075,769400,801

378,830

NET ASSETS
Shareholders' equity
Common stock

54,961

54,961

Capital surplus

78,01178,011Retained earnings

835,240

869,046

Treasury stock, at cost

(30,744)(30,616)

Total shareholders' equity

937,468

971,402

66,12474,562

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

(79)

(19)

10,441

12,119

Accumulated remeasurements of defined benefit plans

(978)

(805)

Total accumulated other comprehensive income (loss)

75,50885,857

11,585

14,746

1,024,562

1,072,005

1,425,364

1,450,835

Foreign currency translation adjustments

Share subscription rights
Total net assets
Total liabilities and net assets

8

TOKYO ELECTRON

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

Three months ended

June 30, 2020

June 30, 2021

Net sales

314,823

452,049

Cost of sales

186,325

241,118

Gross profit

128,497

210,931

Research and development expenses

30,142

34,356

Others

24,50534,783

Total selling, general and administrative expenses

54,64869,14073,849141,791

Dividend income

737

841

Share of profit of associates accounted for using the equity method

152

588

Others

672

351

1,562

1,781

Foreign exchange loss

154

683

Arrangement fee

100

Others67

258

Total non-operating expenses

322

942

75,089142,630

Gain on sales of fixed assets

130

Total unusual or infrequent profit

13

0

435

20

Selling, general & administrative expenses

Operating income
Non-operating income

Total non-operating income
Non-operating expenses

Ordinary income-

Unusual or infrequent profit

Unusual or infrequent loss
Loss on disposal and sales of fixed assets
Additional payment of value-added tax-

Total unusual or infrequent loss

4,577

435

4,597

Income before income taxes

74,667138,033

Income taxes

18,214

37,669Net income

56,452

100,363

Net income attributable to owners of parent

56,452

100,363

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TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Three months ended

Three months ended

June 30, 2020

June 30, 2021

56,452

100,363

12,3408,437

Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities(8)-

Foreign currency translation adjustments

Net deferred gains (losses) on hedging instruments

207

1,663

Remeasurements of defined benefit plans

163

178

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

(24)

68

12,678

10,348

69,131

110,712

69,131

110,712

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: None
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: Yes
Changes in accounting policies
1. Accounting Standard for Revenue Recognition
From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31, 2020) and recognizes revenue with the amounts expected to be received in exchange for the promised
goods or services as the control of such goods or services are transferred to customers.
Regarding sales of semiconductor and FPD (Flat Panel Display) production equipment, goods and set-up services to be transferred werepreviously identified as a single performance obligation and revenue was recorded at the time of the confirmation of set-up in principle. Goingforward, performance obligations related to goods and set-up services to be transferred for equipment are separately identified and revenue
is recognized when each performance obligation is satisfied, which is when equipment is delivered to customers and services related tosetting up equipment are completed.
In addition, in case over a certain quantity of equipment is transacted with a same customer, that could include special price transactions
corresponding to such as purchase quantities. For those transactions with special prices, although revenue was previously recognized basedon each order price, on the ground that sales prices of whole transactions fluctuate by such as future purchase quantity, the accounting
method is changed to estimate those special prices as variable consideration and include it in the transaction price only to the extent that it isprobable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with thevariable consideration is subsequently resolved.
The application of such changes in accounting policies follows the transitional treatment prescribed in the proviso of paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy
had been applied to periods prior to the beginning of the first quarter of this fiscal year, was added to or subtracted from the beginningbalance of retained earnings of the first quarter of this fiscal year.
As a result, for the first quarter of this fiscal year, net sales increased by 139,567 million yen, cost of sales increased by 56,672 million yen,and each of operating income, ordinary income and income before income taxes increased by 82,894 million yen, accordingly. In addition,
the beginning balance of retained earnings decreased by 753 million yen.
Due to the application of the Accounting Standard for Revenue Recognition, “Trade notes and accounts receivable” presented under “Current
assets” in the consolidated balance sheet for the previous fiscal year was included in “Notes and accounts receivable - trade, and contract
assets” from the first quarter of this fiscal year. In accordance with the transitional treatment prescribed in the paragraph 89-2 of the
Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordance with the new
approach to presentation.
2. Accounting Standard for Fair Value Measurement
From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Fair Value Measurement”(ASBJ Statement No. 30, July 4, 2019). In accordance with the transitional treatment prescribed in the paragraph 19 of the AccountingStandard for Fair Value Measurement and paragraph 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019), new accounting policies prescribed by the Accounting Standard for Fair Value Measurement is adopted prospectively.
There is no effect by this change on the consolidated financial statements.
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TOKYO ELECTRON

Segment information(i) 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 on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture offlat panel displays and inkjet printing systems used in the manufacture of OLED displays. The FPD production equipment segmentprincipally develops, manufactures, and sells such products, and provides services on them.
(ii) Net sales and profit or loss in reportable segments
Three months ended June 30, 2021 (April 1, 2021 to June 30, 2021)(Millions of yen)

Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

Others *1

Total

Net sales

437,924

14,0906,234

458,248

Segment profit (loss)

152,886

1,666

131

154,684

Adjustments *2

Consolidated *3

Net sales(6,199)452,049

Segment profit (loss)(16,651)

138,033

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 (16,651) million yen mainly consists of research and development costs of (5,109)
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.
(iii) Matters about changes of reportable segment, etc.
(Adoption of Accounting Standard for Revenue Recognition)
As described in “Changes in accounting policies”, the Company changed accounting treatment for revenue recognition by adopting the
Accounting Standard for Revenue Recognition from the beginning of the first quarter of this fiscal year, and accordingly changed themethods relevant to measuring profits or losses of business segments in the same manner.
As a result, in comparison with the previous method, net sales of the semiconductor production equipment segment and the FPD
production equipment segment in the first quarter of this fiscal year increased by 141,944 million yen and decreased by 2,377 million yen,respectively. In addition, segment profit of the semiconductor production equipment segment and the FPD production equipment segment
increased by 83,327 million yen and decreased by 433 million yen, respectively.
(iv) Impairment losses on fixed assets and goodwill, etc. in reportable segments
Significant impairment losses related to fixed assets: None
Significant changes in goodwill amount: None
Significant gains on negative goodwill: None12