TOKYO ELECTRON ANNUAL REPORT 2015

PAGE

17

CONTENTSCONTENTS

Financial Highlights

Financial Review

Business Overview

Consolidated Eleven-Year
Eleven-Year Summary
Summary
Consolidated

Consolidated Statements
Statements ofof Changes
Changes inin Net
Net Assets
AssetsConsolidated

To Our Stakeholders

Review of Operations
and Business Outlook

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated
Consolidated Statements
Statements ofof Cash
Cash Flows
Flows

Corporate GovernanceCorporate Data

Financial Section

Consolidated Statements
Statements ofof Comprehensive
Comprehensive Income
Income (loss)(loss)
ConsolidatedNotes
Notes toto Consolidated
Consolidated Financial
Financial Statements
Statements

Independent
Independent Auditor’s
Auditor’s Report
ReportConsolidated Balance Sheets
Tokyo Electron Limited and Subsidiaries
As of March 31, 2015 and 2014
Thousands of
U.S. dollars

Millions of yen

ASSETS

2015

2014

2015

Current assets:
Cash and cash equivalents

Thousands of
U.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2015

2014

2015

¥ 56,479¥ 53,668$  469,993

Current liabilities:¥317,632¥104,797$2,643,189

283

163,350

2,355

Short term borrowings—

11,531—

110,845

129,032

922,402

Income taxes payable

6,197

14,01551,569(379)(1,503)(3,154)

Accrued employees’ bonuses

12,111

8,584

100,782

Inventories

175,588

168,277

1,461,163

Customer advances

48,44339,901

403,121

Deferred income taxes

27,672

25,174230,274

Accrued warranty expenses

10,442

10,072

86,894

Prepaid expenses and other current assets

39,24232,365326,544

Accrued expenses and other current liabilities

39,14032,739325,705

670,883

621,492

5,582,783

172,812

170,510

1,438,064

Deferred tax liabilities

8,314

9,279

69,185Net liability for retirement benefits

51,48054,031

428,393

Other liabilities

2,385

4,158

19,847   Total non-current liabilities

62,17967,468517,425  Total liabilities

234,991

237,978

1,955,489  Common stock   Authorized: 300,000,000 shares
Issued:180,610,911 shares as of March 31, 2015 and 2014

54,961

54,961

457,360  Capital surplus

78,02378,023649,272  Retained earnings

488,816

436,174

4,067,704(9,064)(9,479)(75,426)

Short-term investments
Trade notes and accounts receivable
Allowance for doubtful accounts   Total current assets

Trade notes and accounts payable   Total current liabilities

Non-current liabilities:

Property, plant and equipment:Land

25,022

25,112

208,222

Buildings

152,979

151,634

1,273,022

Machinery and equipment

132,411

128,422

1,101,864

Construction in progress

2,424

3,623

20,171

312,836

308,791

2,603,279

Less: Accumulated depreciation

205,940

196,447

1,713,739   Net property, plant and equipment

106,896

112,344889,540   Total property, plant and equipment

Net assets:
Shareholders’ equity   Treasury stock, at cost   1,344,892 and 1,408,950 shares
as of March 31, 2015 and 2014, respectively

Investments and other assets:
Goodwill

9,067

9,400

75,451

Accumulated other comprehensive income

Investment securities

23,93520,027

199,176   Net unrealized gains on investment securities

9,463

5,593

78,747

Net asset for retirement benefits

8,817

8,904

73,371   Net deferred gains on hedging instruments

12260

1,015

Deferred income taxes

18,34823,224

152,684   Foreign currency translation adjustments

12,481

5,777

103,861

Intangible assets

18,50020,156

153,949   Accumulated remeasurements of defined benefit plans

4,682

6,982

38,961Other assets

21,592

14,911

179,679

Share subscription rights

1,421

1,644

11,825

Allowance for doubtful accounts

(1,884)(1,866)(15,678)

Minority interests

258

10,8792,147   Total investments and other assets

98,37594,756

818,632   Total net assets

641,163590,614

5,335,466¥876,154¥828,592$7,290,955

Total liabilities and net assets

¥876,154¥828,592$7,290,955

Total assets
See accompanying Notes to Consolidated Financial Statements.

TOKYO ELECTRON ANNUAL REPORT 2015

PAGE18

CONTENTSCONTENTS

Financial Highlights

Financial Review

Business Overview

Consolidated Eleven-Year
Eleven-Year Summary
Summary
Consolidated

Consolidated Statements
Statements ofof Changes
Changes inin Net
Net Assets
AssetsConsolidated

To Our Stakeholders

Review of Operations
and Business Outlook

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated
Consolidated Statements
Statements ofof Cash
Cash Flows
Flows

Corporate GovernanceCorporate Data

Financial Section

Consolidated Statements of Comprehensive Income (loss)

Notes
Notes toto Consolidated
Consolidated Financial
Financial Statements
Statements

Independent
Independent Auditor’sAuditor’s Report
ReportConsolidated Statements of Operations

Consolidated Statements of Comprehensive Income (Loss)

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2015 and 2014

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2015 and 2014
Thousands ofU.S. dollars

Millions of yenNet sales
Cost of sales Gross profit
Selling, general and administrative expenses
Operating income20152014

2015¥613,125¥612,170$5,102,147

Income (loss) before minority interests

370,351

410,278

3,081,892

Other comprehensive income:

242,774

201,892

2,020,255

Net unrealized gains on investment securities

154,661

169,687

1,287,019

Net deferred gains on hedging instruments

69

92

574

88,11332,205733,236

Foreign currency translation adjustments

6,643

6,867

55,280Remeasurements of defined benefit plans(2,270)—(18,890)

Other income (expenses):
Interest and dividend income

1,281

3,162

10,660

629

1,154

5,234

Gain on sale of property, plant and equipment

1,840

43315,312

Foreign exchange gain (loss), net

1,575(1,229)13,106(2,506)(46,969)(20,854)

Revenue from grants

 Loss on impairment of property, plant and equipment,
goodwill and other assets
Loss on sales of affiliates’ shares(1,609)—(13,389)

Loss on liquidation of subsidiaries(1,070)—(8,904)

Restructuring expenses on facilities(1,046)—(8,704)

Additional payment of custom tax(1,003)—(8,347)

624

(512)

5,193

86,828(11,756)

722,543

14,72615,995

122,543

Other, net
Income (loss) before income taxes and minority interests
Income taxes:
Current
Deferred
Income (loss) before minority interests
Minority interests
Net income (loss)

173(8,538)1,440

71,929(19,213)598,560

41

196

341

¥ 71,888¥ (19,409)$  598,219

Yen

U.S. dollars

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

Thousands ofU.S. dollars

Millions of yen¥ 401.08¥ (108.31)$     3.34

400.15—3.33

3,567.23

3,225.92

29.68

143.00

50.00

1.19

 Share of other comprehensive income of associates accounted forusing equity method
Total other comprehensive incomeComprehensive income (loss)

2015

2014

2015

¥71,929¥(19,213)$598,560

3,868

1,365

32,188

56

—

466

8,366

8,324

69,61880,295(10,889)

668,178

80,224(11,151)

667,587

71

262

591

Total comprehensive income (loss) attributable to:
Owners of the Company
Minority interests
See accompanying Notes to Consolidated Financial Statements.

TOKYO ELECTRON ANNUAL REPORT 2015

PAGE

19CONTENTSCONTENTS

Financial Highlights

Business Overview

Financial Review

Consolidated Eleven-Year
Eleven-Year Summary
Summary
Consolidated

Consolidated Statements of Changes in Net Assets

To Our Stakeholders

Review of Operations
and Business Outlook

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Cash Flows

Corporate GovernanceCorporate Data

Financial Section

Consolidated Statements
Statements ofof Comprehensive
Comprehensive Income
Income (loss)(loss)
Consolidated

Notes
Notes toto Consolidated
Consolidated Financial
Financial Statements
Statements

Independent
Independent Auditor’s
Auditor’s Report
ReportConsolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flows

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2015 and 2014

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2015 and 2014
Thousands ofU.S. dollars

Millions of yen
Shareholders’ equity

Millions of yen

Accumulated other comprehensive income
Deferred
gains(losses) on
hedging
instruments

Commonstock

CapitalsurplusRetainedearnings

Treasurystock

Unrealized
gains oninvestment
securities

Balance as of March 31, 2013

¥54,961¥78,023¥467,921¥(9,589)¥4,214¥ (15)¥ (2,484)

Adjustments due to the changes in fiscal year-end ofconsolidated subsidiaries——(3,190)———Cash dividends——(9,139)———Foreign
Accumulated
currency
adjustments
Sharetranslation for retirement subscription
adjustments
benefits
rightsMinority
interests

Total
net assets¥—¥1,375¥10,721¥605,127

—

—

—

—

(3,190)

—

—

—

—

(9,139)(19,409)

Net loss——(19,409)

—

—

—

—

—

—

—

Repurchase of treasury stock

——

—

(30)

—

—

—

—

—

—

(30)

Disposal of treasury stock

—

—

(9)

140——————

131

Other, netBalance as of March 31, 2014
Cumulative effect of changes
in accounting policies
Restated balance

—

—

—

—

1,379

75

8,261

6,982

269

158

17,124¥54,961¥78,023¥436,174¥(9,479)¥5,593¥ 60¥ 5,777¥6,982¥1,644¥10,879¥590,614——(1,102)

—

—

—

—

—

—

(211)

(1,313)54,961

78,023435,072(9,479)

5,593

60

5,777

6,982

1,644

10,668589,301

Cash dividends——(17,923)

—

—

—

—

—

—

—

(17,923)

Net income——

71,888

——

—

—

—

—

—

71,888

Repurchase of treasury stocks

—

——

(183)

—

—

—

—

—

—

(183)

Disposal of treasury stocks

—

—

(221)

598

—

—

—

—

—

—

377

Other, net—

—

—

—

3,870

62

6,704

(2,300)(223)(10,410)(2,297)¥54,961¥78,023¥488,816¥(9,064)¥9,463¥122¥12,481¥4,682¥1,421¥   258¥641,163

Total
net assets

Balance as of March 31, 2015

Thousands of U.S. dollars
Shareholders’ equity

Accumulated other comprehensive income

Treasurystock

Unrealized
gains oninvestment
securitiesDeferred
gains(losses) on
hedging
instruments

Foreign
Accumulated
currency
adjustments
Sharetranslation for retirement subscription
adjustments
benefits
rightsMinority
interests

Balance as of March 31, 2014 $457,360 $649,272 $3,629,641 $(78,880)$46,542$  499$ 48,074 $58,101$90,530 $4,914,820

Commonstock

Cumulative effect of changes
in accounting policies
Restated balance

CapitalsurplusRetainedearnings$13,681——(9,170)

——

—

—

—

—

(1,756)(10,926)

457,360

649,272

3,620,471(78,880)

46,542499

48,074

58,101

13,681

88,774

4,903,894

Cash dividends——(149,147)

—

—

—

—

—

—

—

(149,147)

Net income——

598,219

—

—

—

—

—

—

—

598,219

Repurchase of treasury stocks

—

—

—

(1,523)

—

—

—

—

—

—

(1,523)

Disposal of treasury stocks——(1,839)

4,977

—

—

—

—

—

—

3,138

Other, net

—

—

—

—

32,205516

55,787(19,140)(1,856)(86,627)(19,115)$457,360 $649,272 $4,067,704 $(75,426)$78,747$1,015$103,861 $38,961$11,825

Balance as of March 31, 2015See accompanying Notes to Consolidated Financial Statements.

$ 2,147 $5,335,466

Cash flows from operating activities:
Income (loss) before income taxes and minority interests
Depreciation and amortization
 Loss on impairment of property, plant and equipment, goodwill
and other assets
Amortization of goodwill
Increase in net liability for retirement benefitIncrease in net asset for retirement benefit
Decrease in allowance for doubtful accounts
Increase in accrued employees’ bonuses
Increase in accrued warranty expenses
Interest and dividend income
Gain on sales of property, plant and equipment
Loss on sales of affiliates’ shares
Increase in trade notes and accounts receivable
Increase in inventories
Decrease in prepaid consumption tax
Increase in accrued consumption tax
Increase in trade notes and accounts payable
Increase in customer advances
Other, net
Subtotal
Receipts from interest and dividends
Interest paid
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 purchase of property, plant and equipment
Proceeds from sale of property, plant and equipmentPayment for acquisition of intangible assets
Proceeds from sales of investment securities
Proceeds from sales of affiliates’ shares
Other, netNet cash provided by (used in) investing activities
Cash flows from financing activities:
Increase in short-term borrowings, net
Proceeds from long-term borrowings
Increase in treasury stock, net
Dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents due to the change infiscal year-end of consolidated subsidiaries
Cash and cash equivalents at end of year
See accompanying Notes to Consolidated Financial Statements.

2015

2014

2015

¥ 86,828
20,878¥ (11,756)
24,888$  722,543
173,737

2,506

46,96920,8541,150
2,784(1,601)(1,081)
3,667
259(1,281)(1,820)1,609(1,318)(26,850)(11,384)
2,707
9,432
12,912(4,972)
94,425
1,621—(24,240)
71,806

4,262
2,887
(654)
(228)
1,396
1,256
(3,162)(303)—(25,358)(32,088)(2,913)
1,123
15,606
19,0832,044
43,052
3,223(84)(1,742)44,4499,570
23,167(13,323)(8,996)30,515
2,155(10,660)(15,145)
13,389(10,968)(223,433)(94,732)
22,52678,489107,448(41,374)785,762
13,489—(201,714)
597,537(24,997)
188,302(11,899)
2,549
(422)
1,093
1,726
(614)
155,738(192,614)
184,071(9,451)897(1,640)111—(973)(19,599)(208,014)
1,566,964(99,018)
21,212(3,512)
9,095
14,363(5,109)1,295,981

—
—
(183)
(17,923)(108)(18,214)3,505
212,835
104,797

7,551
2,000
(30)
(9,139)(569)(187)(3,973)
20,69085,314——(1,523)(149,147)(899)(151,569)
29,167
1,771,116
872,073—¥317,632(1,207)¥104,797—$2,643,189