In order to further enhance
our global leadership, Tokyo Electron ismoving ahead with a future-oriented
management stance.

In response to the global economic crisis, which occurred in the fallleveraging our production equipment technology that we haveof 2008, semiconductor manufacturers sharply reduced capitaldeveloped over the years in areas such as semiconductors and flat

investment, pushing Tokyo Electron’s operations into the red. In

panel displays, we have started to take on the challenges of innova-fiscal 2010, the year ended March 31, 2010, Tokyo Electron posted

tive and cutting-edge technologies, such as photovoltaic cell pro-net sales of ¥418.6 billion, an operating loss of ¥2.2 billion and aduction equipment. For Tokyo Electron, with our superior

net loss of ¥9.0 billion. Although dividends are set at a payout ratio

technological and financial resources, it is not too much to say thatof 20% of consolidated net income in principle, despite thesean exciting era has arrived in which the Company will be able tocircumstances, the Company has set dividends for the period at ¥12

technologically differentiate itself even further.

per share (an interim dividend of ¥4 and a year-end dividend of ¥8

The industries in which Tokyo Electron participates make a pro-per share). The Company would like to again express its thanks tofound contribution to the lifestyles of people everywhere. As theour shareholders and all other stakeholders for their continued

global economy begins to brighten, these industries have been

support in a severe operating environment.

enjoying a more rapid recovery than other industries. Even now,Tokyo Electron offers a variety of production equipment thatmost of our manufacturing facilities are operating at close to fullcontributes to the manufacture of core components, such as

capacity. Although the economy may continue to fluctuate in thesemiconductors and LCD panels, which play a central role in theshort term, we must stay on course. We reaffirm our significant

current age of digital networks. Our products contribute to pro-

responsibility as the global leader in production equipment and are

viding more comfort in the lives of people. As the market increas-

committed to providing high value to our customers and society

ingly requires us to pursue the continuous innovation ofthrough our business activities, which we conduct with a sense oftechnology for production equipment, we see a great potential

mission and strong commitment. On behalf of all the management

for further growth in this market.

of Tokyo Electron, I would like to express our determination toAlthough a severe business environment has persisted sincecontinue working to expand our businesses, to pursue new techno-2008, Tokyo Electron has dealt with this challenge as the world’slogical advances, to further enhance management efficiency, and to

top supplier of production equipment, based on our consistent

make Tokyo Electron into an attractive company truly valued by all

management stance. In the short term, we have implemented

stakeholders. Looking ahead, I would like to thank all our stakehold-company-wide measures to curb fixed-costs that are not critical for

ers for continuing to support these objectives.

our operations. At the same time, we have increased our emphasison the medium-term perspective, and prioritized initiatives thathave strong future potential. In line with this stance, we have continued to keep investments in technological development at a highHiroshi Takenaka, President & CEO

level, because these are essential to our future growth. Also, byAnnual Report 2010

Tokyo Electron3