CONSOLIDATEDFINANCIALSTATEMENTS
FY2024
Year Ended March 31, 2024with Independent Auditor’s ReportConsolidated Balance Sheets
Tokyo Electron Limited and Subsidiaries
As of March 31, 2024 and 2023

Thousands of
U.S. dollars

Millions of yen

ASSETS

2024

2024

2023

Current assets:

Thousands of
U.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2024

2023

2024

Trade notes and accounts payable¥92,359¥116,317$609,999

Income taxes payable

80,00971,177528,430

Customer advances

289,905

289,169

1,914,703

Current liabilities:

Cash and cash equivalents¥461,608¥472,471$3,048,733

Short-term investments

10,939628

72,251

Notes and accounts receivable - trade, and contract assets

391,423

464,889

2,585,188

(353)

(184)

(2,335)

Accrued employees’ bonuses

43,72743,337

288,803

Inventories

762,957

652,208

5,039,018

Accrued warranty expenses

33,524

34,382

221,416

Prepaid consumption tax

36,093

123,977

238,383

Other current liabilities

72,37275,509477,988

Other current assets

37,782

26,968249,537

611,899

629,893

4,041,340

Total current assets

1,700,451

1,740,959

11,230,776

Net defined benefit liabilities

56,13960,366

370,777

Other liabilities

28,24321,808

186,537

84,38382,175557,314696,282

712,069

4,598,655

Common stock
Authorized: 900,000,000 and 300,000,000 shares
as of March 31, 2024 and 2023, respectively
Issued: 471,632,733 and 157,210,911 shares as of March 31, 2024
and 2023, respectively

54,961

54,961

362,995

Capital surplus

78,01178,011

515,230

Retained earnings

1,480,306

1,322,203

9,776,810

Treasury stock, at cost
8,633,247 and 1,090,672 shares as of March 31, 2024 and2023, respectively(135,215)(22,033)(893,040)

184,934

107,452

1,221,413

42

(46)

278

Allowance for doubtful accounts

Total current liabilities

Non-current liabilities:

Property, plant and equipment:Land

33,80431,283

223,261

Buildings and structures

271,442

248,421

1,792,763

Machinery and equipment

295,434

253,955

1,951,219

Construction in progress

87,39939,605577,235

Other property, plant and equipment

15,275

12,566

100,891

Total property, plant and equipment

703,355

585,8314,645,371

365,988326,7432,417,204

337,366

259,088

2,228,167

Less: Accumulated depreciation
Net property, plant and equipment

Investments and other assets:

Total non-current liabilities
Total liabilities

Net assets:
Shareholders’ equity

Investment securities

277,706

165,507

1,834,134

Deferred tax assets

42,09658,599278,026

Net defined benefit assets

29,426

19,374

194,347

Intangible assets

32,38328,559213,881

Net unrealized gains on investment securities

Other assets

38,44140,844

253,891

Net deferred losses on hedging instruments

Allowance for doubtful accounts(1,409)(1,340)(9,310)Foreign currency translation adjustments

72,27543,091

477,349

418,644

311,5452,764,971

Accumulated remeasurements of defined benefit plans

11,5193,954

76,082¥2,456,462¥2,311,594$16,223,915

13,345

11,92988,1391,760,180

1,599,524

11,625,259¥2,456,462¥2,311,594$16,223,915

Total investments and other assets
Total assets
See accompanying Notes to Consolidated Financial Statements.

Accumulated other comprehensive income

Share subscription rights
Total net assets
Total liabilities and net assets
See accompanying Notes to Consolidated Financial Statements.

1

TOKYO ELECTRON Consolidated Financial Statements FY2024

TOKYO ELECTRON Consolidated Financial Statements FY2024

2

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2024 and 2023

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2024 and 2023

Thousands of
U.S. dollars

Millions of yen

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

2024

2023

2024

¥1,830,527¥2,209,025$12,089,870

1,000,257

1,224,617

6,606,284

830,269

984,408

5,483,586

374,006

366,684

456,263

617,723

2024

2023

2024

¥363,963¥471,584$2,403,828

Net unrealized gains on investment securities

77,465

13,951

511,627

2,470,156

Foreign currency translation adjustments

28,923

12,320191,024

3,013,430

Remeasurements of defined benefit plans

7,543

3,382

49,823

385

183

2,547

114,318

29,837755,023478,281

501,421

3,158,852¥478,281¥501,421$3,158,852

Interest and dividend income

3,737

2,435

24,682

Share of profit of associates accounted for using the equity method

3,388

2,968

22,376

Revenue from grants

2,430

2,559

16,051Gain on sales of property, plant and equipment

10,617890

70,125

Foreign exchange loss, net(4,148)(1,401)(27,396)

(584)

(781)

(3,863)

—

(438)

—

1,735

899

11,461

473,439624,856

3,126,868

Current

124,001

173,704

818,975

Deferred(14,525)(20,431)(95,935)

Net income

363,963471,584

2,403,828

Net income attributable to owners of parent¥363,963¥471,584$2,403,828

Loss on impairment of property, plant and equipment, goodwill
and other assets
Other, net
Income before income taxes

Net income
Other comprehensive income:

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

Other income (expenses):

Loss on sales and disposal of property, plant and equipment

Thousands of
U.S. dollars

Millions of yen

Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:
Owners of parent
See accompanying Notes to Consolidated Financial Statements.

Income taxes:

Yen

U.S. dollars

Per share of common stock (Note):
Net income — basic¥783.75¥1,007.82$5.18

Net income — diluted

781.201,003.86

5.16

3,773.11

3,389.68

24.92

393.001,711.00

2.60

Net assets
Cash dividends

Note: T he Company implemented a 3-for-1 common stock split on April 1, 2023. Net income per share of common stock - basic, net income per share of common stock diluted and net assets per share of common stock are calculated on the assumption that the stock split was implemented at the beginning of the year ended March 31,
2023. For cash dividends for the fiscal year ended March 31, 2023, the actual amount of dividends prior to the stock split is presented.
See accompanying Notes to Consolidated Financial Statements.

3

TOKYO ELECTRON Consolidated Financial Statements FY2024

TOKYO ELECTRON Consolidated Financial Statements FY2024

4

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flows

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2024 and 2023

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2024 and 2023

Millions of yen
Shareholders’ equity

Thousands of
U.S. dollars

Millions of yen

Accumulated other comprehensive income
Net unrealized Net deferredlosses on
gains onhedging
investment
instruments
securities

Foreign
Accumulated
currency
remeasurements
Sharetranslationof defined
subscription
adjustments benefit plansrights

2024

2023

2024

Cash flows from operating activities:
Total
net assets

Income before income taxes¥473,439¥624,856$3,126,868¥11,895¥1,347,048

Depreciation and amortization

52,33942,927

345,682——(252,988)

73

168

483

(631)

(2,301)(4,167)———

471,584

Increase (decrease) in accrued warranty expenses(1,271)

7,594(8,398)

—

—

—

—

(1,728)Interest and dividend income(3,737)(2,435)(24,682)

—

—

—

—

—

5,737

Gain on sales and disposal of property, plant and equipment(10,032)(109)(66,262)—

13,9606

12,4503,419

33

29,871

Decrease (increase) in notes and accounts receivable trade, and contract assets

84,848(24,750)

560,388¥1,322,203¥(22,033)¥107,452¥(46)¥43,091¥3,954¥11,929¥1,599,524

Increase in inventories(97,712)(173,487)(645,350)—(202,457)

—

—

—

—

—

—

(202,457)

Decrease in trade notes and accounts payable(29,629)(11,406)(195,692)——

363,963

—

—

—

—

—

—

363,963

Decrease (increase) in prepaid consumption tax

88,092(13,390)581,814Purchase of treasury stock

—

—

—

(120,028)

—

—

—

—

—

(120,028)

Increase (decrease) in customer advances(2,390)185,616(15,786)

Disposal of treasury stock——(3,402)

6,846

—

—

—

—

—

3,444

Other, net(4,278)(809)(28,255)

Net changes except forshareholders’ equity

—

—

—

—

77,481

88

29,183

7,564

1,415

115,733

Subtotal

549,109632,473

3,626,641

4,546

2,907

30,030

Income taxes paid

(118,935)(209,111)(785,521)

Net cash provided by operating activities

434,720426,270

2,871,150

Payment for purchases of short-term investments(20,755)(713)(137,078)

Proceeds from redemption of short-term investments

10,66635,73170,445

Payment for purchases of property, plant and equipment(116,993)(66,897)(772,695)

Proceeds from sales of property, plant and equipment

12,967

1,428

85,644

Payment for acquisition of intangible assets(7,987)(9,416)(52,752)(3,046)(1,887)(20,119)(125,148)(41,756)(826,555)

Payment for purchases of treasury stock(120,028)(1,728)(792,737)

Dividends paid

(202,457)(252,988)(1,337,148)(2,525)(1,817)(16,682)(325,012)(256,534)(2,146,568)

4,577

8,843

30,229Net increase (decrease) in cash and cash equivalents(10,862)

136,823(71,744)

Cash and cash equivalents at beginning of year

472,471335,648

3,120,478

Cash and cash equivalents at end of year

¥461,608¥472,471$3,048,733

Commonstock

CapitalsurplusRetainedearnings

Treasurystock¥54,961¥78,011¥1,104,983¥(27,418)¥93,492¥(52)¥30,640¥535

Cash dividends——(252,988)

—

—

—

—

Net income attributable toowners of parent——

471,584———

Purchase of treasury stock

—

—

—

(1,728)—

Disposal of treasury stock——(1,375)

7,113

Net changes except forshareholders’ equity

—

—

—

Balance as ofMarch 31, 2023

¥54,961¥78,011

Cash dividends—

Net income attributable toowners of parent

Balance as ofMarch 31, 2022

Balance as ofMarch 31, 2024

Amortization of goodwill
Decrease in accrued employees’ bonuses

Receipts from interest and dividends¥54,961¥78,011¥1,480,306¥(135,215)¥184,934¥42¥72,275¥11,519¥13,345¥1,760,180

Cash flows from investing activities:

Thousands of U.S. dollars
Shareholders’ equity

Accumulated other comprehensive income
Net unrealized Net deferredlosses on
gains onhedging
investment
instruments
securities

Foreign
Accumulated
currency
remeasurements
Sharetranslationof defined
subscription
adjustments benefit plansrightsTotal
net assets

Commonstock

CapitalsurplusRetainedearnings

Treasurystock

Balance as ofMarch 31, 2023

$362,995$515,230$8,732,602$(145,523)$709,681$(304)$284,603$26,119

Cash dividends——(1,337,148)

—

—

—

—

—

—

(1,337,148)

Other, net

Net income attributable toowners of parent——

2,403,828

—

—

—

—

—

—

2,403,828

Net cash used in investing activities

Purchase of treasury stock

—

—

—

(792,737)

—

—

—

—

—

(792,737)

Disposal of treasury stock——(22,472)

45,220

—

—

—

—

—

22,747

Net changes except forshareholders’ equity

—

—

—

—

511,732582

192,745

49,963

9,348

764,372$362,995$515,230$9,776,810$(893,040)$1,221,413$278$477,349$76,082

Balance as ofMarch 31, 2024

See accompanying Notes to Consolidated Financial Statements.

$78,790 $10,564,196$88,139 $11,625,259

Cash flows from financing activities:

Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

See accompanying Notes to Consolidated Financial Statements.

5

TOKYO ELECTRON Consolidated Financial Statements FY2024

TOKYO ELECTRON Consolidated Financial Statements FY2024

6

Notes to Consolidated Financial Statements
Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2024 and 2023

1. Basis of Presentation of Consolidated Financial Statements
The accompanying consolidated financial statements of Tokyo
Electron Limited (hereinafter “the Company”) and its subsidiaries(hereinafter collectively referred to as “Tokyo Electron”) havebeen prepared in accordance with the provisions set forth in the
Financial Instruments and Exchange Act of Japan and its related
accounting regulations, and in conformity with accounting
principles generally accepted in Japan, which are different incertain respects as to application and disclosure requirements ofInternational Financial Reporting Standards.
The Company uses financial statements prepared by foreignsubsidiaries in accordance with International Financial ReportingStandards or U.S. generally accepted accounting principles
for the preparation of the consolidated financial statements,
together with adjustment for certain items which are required tobe adjusted in the consolidation process.
The accompanying consolidated financial statements havebeen restructured and translated into English from the statutory
Japanese language consolidated financial statements. Some
supplementary information included in the statutory Japanese
language consolidated financial statements is not presented in
the accompanying consolidated financial statements.
The amounts in the consolidated financial statements andassociated notes shown in millions and thousands of yen;
thousands of U.S. dollars; and thousands of shares as of and forthe years ended March 31, 2024 and 2023 are truncated at thenearest unit. Accordingly, totals do not necessarily agree with thesum of the corresponding individual amounts.
U.S. dollar amounts included herein are solely for theconvenience of readers and are presented at the rate of ¥151.41 to$1.00, the approximate rate as of March 31, 2024. The translation
should not be construed as a representation that the Japanese
yen amounts shown could be converted into U.S. dollars at thator any other rate.
2. Summary of Significant Accounting Policies(a) Principles of consolidation
The consolidated financial statements include the accountsof the Company and its 26 and 27 subsidiaries as of March 31,
2024 and 2023, respectively. All significant inter-company
transactions and account balances have been eliminatedthrough consolidation procedures.
There is 1 affiliate accounted for using the equity method asof March 31, 2024 and 2023.
The fiscal year-end of all entities is March 31, except for
3 consolidated foreign subsidiaries. Financial statements
provisionally closed for the period ending March 31 are used for
those subsidiaries.
(b) Foreign currency translation
All assets and liabilities denominated in foreign currencies aretranslated into Japanese yen at the year-end rates, except for
those hedged by forward exchange contracts and currency
option contracts, which are translated at the contracted rates.
Resulting exchange gains and losses are included in earnings forthe year.
7

TOKYO ELECTRON Consolidated Financial Statements FY2024

Revenue and expense items are translated at the rates thatapproximate those prevailing at the time of the transactions.
The balance sheet accounts of foreign subsidiaries aretranslated into Japanese yen at the rates of exchange in effect atthe balance sheet date, except for shareholders’ equity accounts,
which are translated at the historical rates. Revenue and expense
accounts of foreign subsidiaries are translated at average rates
of exchange in effect during the year. Resulting translation
adjustments are presented in net assets as a componentof accumulated other comprehensive income (loss) in the
consolidated balance sheets.
(c) Cash and cash equivalents
Cash and cash equivalents consist of cash, short-term deposits
and low-risk financial instruments with original maturities ofthree months or less.
(d) Short-term investments
Short-term investments consist of short-term deposits and lowrisk financial instruments with original maturities of more than
three months.
(e) Investment securities
Tokyo Electron examines the intent of holding each security
and classifies those securities as trading securities, held-to
maturity debt securities or other securities. Tokyo Electron has
no trading securities as of March 31, 2024 and 2023. Held-tomaturity debt securities are stated mainly at amortized cost.
Other securities with market prices are valued at fair value at thebalance sheet date. The differences between the book value andfair value of other securities, net of applicable income taxes, arepresented in net assets as a component of accumulated othercomprehensive income (loss) in the consolidated balance sheets.
Other securities without market prices are valued at cost using
the weighted-average method.
The cost of sold securities is calculated using the weighted
average method.
(f) Inventories
Inventories are stated at the lower of cost, determined byprincipally the specific identification method, or net selling
price, which is defined as selling price less estimated additional
manufacturing costs and estimated direct selling expenses.
(g) Property, plant and equipment
Property, plant and equipment are stated at cost. Depreciationof buildings and structures, machinery and equipment of theCompany and its domestic subsidiaries is computed using thedeclining-balance method, except for buildings acquired sinceApril 1, 1998 and facilities attached to buildings and structuresacquired since April 1, 2016 which are depreciated using thestraight-line method, based on the estimated useful livesof assets. Foreign subsidiaries mainly apply the straight-line
method over the estimated useful lives of assets.

Estimated useful lives of property, plant and equipment are
as follows:
Buildings and structures
2 to 60 years
Machinery and equipment
2 to 20 years(h) Intangible assets (excluding goodwill)
Intangible assets are amortized by the straight-line method overtheir estimated useful lives.
(i) Goodwill
Goodwill is evaluated on an individual basis and amortized by thestraight-line method over a period not exceeding 20 years.
(j) Impairment of fixed assets
Tokyo Electron evaluates the carrying value of fixed assets held
for use in the business and idle assets.
If the carrying value of a fixed asset is impaired, a loss isrecognized based on the amount by which the carrying value
exceeds its recoverable amount, being the higher of the net
selling price or the value in use of the assets. Net selling priceis determined using the fair value less disposal costs and value
in use is based on the total amount of discounted cash flows
estimated to be generated from the continuing use of theindividual assets or the asset group and the disposal of theassets.
(k) Allowance for doubtful accounts
The Company and its domestic subsidiaries provide anallowance for doubtful accounts at an amount determinedbased on the historical experience of bad debts with respect toordinary receivables, and an estimate of uncollectible amounts
determined by reference to specific doubtful receivables from
customers which are experiencing financial difficulties. Overseas
subsidiaries provide an allowance for doubtful accounts
based on an estimate of uncollectible amounts determined byreference to specific doubtful receivables from customers which
are experiencing financial difficulties.
(l) Accrued employees’ bonuses
The provision for accrued employees’ bonuses is provided basedon the estimated payments to be made in respect of the fiscal
year.
(m) Employee benefits
The Company and its domestic subsidiaries provide defined
benefit plans for their employees. Expected benefits are
attributed to accounting periods by the benefit formula basis.
Prior service costs are charged to earnings on a straight-line
basis, beginning from the fiscal year in which they are incurred,over a fixed number of years (4 years) within the averageremaining years of service of employees when the changes
occur. Actuarial differences are charged to earnings on astraight-line basis, beginning from the following fiscal year after
they are incurred, over a fixed number of years (4 years) within
the average remaining years of service of employees when the
differences occur.

The provision for accrued pension and severance costs
for directors and audit & supervisory board members of
the Company and its domestic subsidiaries is calculated inaccordance with internal regulations.
The Company and certain domestic subsidiaries decided to
discontinue the payment of severance pay for directors andaudit & supervisory board members after April 1, 2005, and at thegeneral shareholders’ meeting in June 2005, it was resolved thatthe severance pay for directors and audit & supervisory board
members until March 31, 2005 would be paid at the terminationof their service and the decision regarding the payment amountfor each director and audit & supervisory board member was
delegated to the board of directors and audit & supervisoryboard members. The accruals for severance costs for directors
and audit & supervisory board members are included in Net
defined benefit liabilities in the consolidated balance sheets.
(n) Accrued warranty expenses
Tokyo Electron’s products are generally subject to warranty, andTokyo Electron accrues estimated warranty costs. Estimatedafter-sale repair expenses over warranty periods are accrued
based on the historical ratio of actual repair expenses tocorresponding sales.
(o) Derivatives and hedge accounting
The Company and certain subsidiaries (hereinafter “the Group”)
make use of derivatives in order to manage certain risks arisingfrom adverse fluctuations in foreign currency exchange rates.
The amount of derivatives is limited to the extent of actual
demands, and the Group does not trade in derivatives for
speculative purposes.
Derivatives are carried at fair value in the consolidatedbalance sheets with changes in unrealized gain or loss charged
or credited to earnings, except for those which meet thecriteria for hedge accounting. Unrealized gains or losses on
hedging instruments, net of taxes, are reported in net assets
as a component of accumulated other comprehensive income(loss) in the consolidated balance sheets. Receivables, payables
and foreign currency forecast transactions hedged by qualified
forward foreign exchange contracts and currency option
contracts are translated at the corresponding contract rates.
(p) Income taxes
Tokyo Electron records deferred tax assets and liabilities on
temporary differences between the carrying amounts ofassets and liabilities for financial reporting purposes and theamounts used for income tax purposes and net operating loss
carryforwards. Deferred tax assets and liabilities are measured
using the enacted tax rates and laws which are expected to bein effect when net operating loss carryforwards and temporary
differences are expected to be realized.

TOKYO ELECTRON Consolidated Financial Statements FY20248

(q) Revenue recognition
Nature of main performance obligations in the principal businessTokyo Electron principally develops, manufactures, and sells
semiconductor production equipment, and provides field
solution services such as spare parts, services and modifications
for installed equipment, and sales of used equipment. Regarding
sales of equipment, transfer of goods, provision of set-up
services, sales of spare parts, and provision of modifications
and maintenance services are identified as major performanceobligations.
Timing of satisfaction of performance obligations (Timing ofrevenue recognition)
Regarding sales of semiconductor production equipment,
revenue for the transfer of goods and provision of set-up
services is principally recognized when goods are delivered
to customers and provision of set-up services is completed.
Regarding sales of spare parts, revenue is recognized whenspare parts are delivered to customers. Regarding modifications,revenue is principally recognized when modifications arecompleted. Regarding maintenance services, revenue isprincipally recognized over the term of the contracts withcustomers.
(r) Research and development expenses
Research and development expenses are charged to earnings
as incurred and amounted to ¥202,873 million ($1,339,893
thousand) and ¥191,196 million for the years ended March 31,
2024 and 2023, respectively.
(s) Reclassifications
Certain reclassifications have been made to the prior year’s
consolidated financial statements to conform with thepresentation used for the year ended March 31, 2024.
3. Significant Accounting Estimates
1. Valuation of inventories(1) Carrying amounts in the consolidated financial statements¥762,957 million ($5,039,018 thousand) and ¥652,208 million asof March 31, 2024 and 2023, respectively.
(2) Information on the nature of significant accounting
estimates
Inventories are principally stated at cost on the consolidatedbalance sheets. When the net selling price for inventory
decreases below its cost at the end of the fiscal year, theCompany writes down inventories in an amount equal to thedifference between the cost of the inventory and the net selling
price.
Inventories aged over a certain holding period are classified
based on the expected use and salability and are thensystematically written down according to their classification.
The carrying amount of inventories to be disposed of iswritten down to the estimated disposal value.
The valuation of inventories is based on forecasts of future
demand and prospects for the market environment. The
9TOKYO ELECTRON Consolidated Financial Statements FY2024

semiconductor industry, where Tokyo Electron operates, isinfluenced by the short-term unbalance between supply anddemand, and the market could undergo fluctuations. Unforeseen
rapid contraction of the semiconductor market could leadto additional write downs of inventories in the consolidated
financial statements for the next fiscal year.
2.Accrued warranty expenses(1) Carrying amounts in the consolidated financial statements¥33,524 million ($221,416 thousand) and ¥34,382 million as ofMarch 31, 2024 and 2023, respectively.
(2) Information on the nature of significant accounting
estimates
The Company accrues estimated warranty costs. Estimatedafter-sale repair expenses over warranty periods are accrued
based on the historical ratio of actual repair expenses tocorresponding sales.
Tokyo Electron’s products are based on the integrationof numerous leading-edge technologies. The occurrence of
unforeseen defects could lead to additional after-sale repair
expenses in the consolidated financial statements for the next
fiscal year.
4. Additional Information
Transactions for delivery of the Company's own stock to
employees and others through trusts
Tokyo Electron introduced stock delivery schemes (hereinafter“the Schemes”) as a common global incentive plan. The purposeof the Schemes is to encourage the directors of the Company
and its subsidiaries (excluding outside directors), corporate
officers, executive officers and senior and mid-level employees
to contribute to improving medium-term business performance,
as well as to share a shareholder perspective by holding
Company shares and raising awareness towards enhancing
corporate value.
For the Company's outside directors, the Company has
introduced non-performance-linked stock-based compensation
as a system that is more consistent with their expected roleof advising management from the perspective of increasing
corporate value over the medium- to long-term, in addition to
management supervision. In accordance with that objective, theCompany's outside directors are now within the scope of the
Schemes.
Tokyo Electron adopted the “Practical Solution on
Transactions for Delivery of the Company’s Own Stock to
Employees, and others through Trusts” (PITF No. 30, March 26,2015) for the accounting treatment of the Schemes.
1. Executive compensation BIP (Board Incentive Plan) Trust(1) Overview of the transactions
The Executive compensation BIP Trust which the Company
established acquires the Company’s shares, and delivers andprovides shares of the Company and monetary compensation
corresponding to the cash conversion value of the Company’s
shares to the directors and the corporate officers of theCompany and the directors of its subsidiaries in accordance withthe share delivery rules.
(2) The Company’s shares held by the trust
Tokyo Electron recorded the Company’s shares held by the trustin “Treasury stock, at cost” under “Net assets” at the book value
in the trust (excluding ancillary expenses). The book value andthe number of such treasury shares were ¥1,393 million ($9,200
thousand) and 176,279 shares, respectively, as of March 31, 2024,
and were ¥1,576 million and 194,892 shares, respectively, as ofMarch 31, 2023.
The Company implemented a 3-for-1 common stock split
on April 1, 2023. The number of treasury shares presented
above is calculated on the assumption that the stock split was
implemented at the beginning of the year ended March 31, 2023.
2. Share-delivering ESOP (Employee Stock Ownership Plan) Trust(1) Overview of the transactions
The Share-delivering ESOP Trust which the Company establishedacquires the Company’s shares, and delivers and provides sharesof the Company and monetary compensation corresponding
to the cash conversion value of the Company’s shares to thegeneral managers, senior employees and mid-class employeesof the Company and its subsidiaries based on their position andattainment of performance targets in accordance with the sharedelivery rules.
(2) The Company’s shares held by the trust
Tokyo Electron recorded the Company’s shares held by the trustin “Treasury stock, at cost” under “Net assets” at the book value
in the trust (excluding ancillary expenses). The book value andthe number of such treasury shares were ¥9,595 million ($63,373
thousand) and 1,210,128 shares, respectively, as of March 31, 2024,
and were ¥10,555 million and 1,307,745 shares, respectively, as ofMarch 31, 2023.
The Company implemented a 3-for-1 common stock split
on April 1, 2023. The number of treasury shares presented
above is calculated on the assumption that the stock split was
implemented at the beginning of the year ended March 31, 2023.

reviewed after the publication of Statement No.28, etc., weredeliberated and new requirements published.
• Classification of tax expenses (taxation on othercomprehensive income)• Tax effect on the sale of shares of subsidiaries and affiliates
when the group taxation regime is applied(2) Effective date
Effective from the beginning of the fiscal year ending March 31,
2025.
(3) Effects of the application of the standards
The Company and its consolidated domestic subsidiaries are
currently in the process of determining the effects of these newstandards on the consolidated financial statements.
6. Securities
Other securities as of March 31, 2024 and 2023 are as follows:
Millions of yen

2024:

Cost

Carrying value

Non-current
Securities with carrying value exceedingacquisition cost
¥6,733Equity securities¥273,346

Securities with carrying value not exceedingacquisition cost
4,359

4,359

Total

¥11,092¥277,706

2023:

Cost

Equity securities

Millions of yen
Carrying value

Non-current
Securities with carrying value exceedingacquisition cost
Equity securities¥7,191¥162,237

Securities with carrying value not exceedingacquisition cost
3,165

3,118

Total

Equity securities¥10,357¥165,355

2024:

Cost

Carrying value$44,469$1,805,342

Thousands of U.S. dollars

Non-current

5. Accounting Standards Issued but Not yet Adopted“Accounting Standard for Current Income Taxes” (ASBJ
Statement No. 27, October 28, 2022)“Accounting Standard for Presentation of Comprehensive
Income” (ASBJ Statement No. 25, October 28, 2022)“Implementation Guidance on Tax Effect Accounting” (ASBJ
Guidance No. 28, October 28, 2022)(1) Overview“Partial Amendments to Accounting Standard for Tax EffectAccounting” (ASBJ Statement No. 28), etc. (hereinafter,“Statement No.28, etc.”) were published on February, 2018 andthus the responsibility for implementation guidance on tax
effect accounting was transferred from the JICPA to the ASBJ.
In the process of deliberation of the newly issued standards
and guidance above, the following two issues, which were to be

Securities with carrying value exceedingacquisition cost
Equity securities
Securities with carrying value notexceeding acquisition cost
Equity securities
Total

28,791

28,791$73,261$1,834,134

Held-to-maturity securities classified as current assets are¥10,165 million ($67,136 thousand) and ¥0 million as of March 31,
2024 and 2023, respectively.
Reconciliation of held-to-maturity securities as of March 31,
2024 and 2023 to the amounts of short-term investments in the
consolidated balance sheets are as follows:

TOKYO ELECTRON Consolidated Financial Statements FY2024

10

Thousands of
U.S. dollars

Millions of yen

2024
Held-to-maturity (current)¥10,165

Deposits and low-risk financial
instruments with original
maturities of three months or less

Short-term investments¥0—

Deposits with original maturities
of more than three months

2024

2023

—

774

627

5,114

¥10,939¥628$72,251

Net loss on devaluation of investment securities was
immaterial and none for the years ended March 31, 2024 and2023, respectively.
For the years ended March 31, 2024 and 2023, the Company
sold available-for-sale securities and the amounts wereimmaterial.
7. Inventories
Inventories as of March 31, 2024 and 2023 are as follows:

Finished products

2024

2023

2024

¥122,776¥126,639$810,887

Service cost

6,743

6,724

44,539Interest cost

1,699

1,017

11,221

Balance at April 1, 2023
and 2022

Actuarial gain (loss)(7,829)(6,403)(51,711)

Benefits paid

(5,427)(5,491)(35,849)

Prior service cost

(1,492)—(9,856)

Foreign currency exchange
rate changes

1,177

228

7,775

56

60

374

Other
Balance at March 31, 2024
and 2023¥117,703¥122,776$777,380

2024

2023

2024

¥236,795$1,878,684

Thousands of
U.S. dollars

Millions of yen

Balance at April 1, 2023
and 2022
Expected return on plan assets

2024

2023

2024

¥81,785¥80,292$540,155

2,042

1,834

13,492478,506

415,4123,160,333

Actuarial gain (loss)

4,047(1,044)

26,731

Total¥762,957¥652,208$5,039,018

Employer contributions

3,800

2,332

25,102

Benefits paid

(1,969)(1,877)(13,010)

9. Short-term Borrowings
There are no short-term borrowings classified as current
liabilities as of March 31, 2024 and 2023.
As of March 31, 2024 and 2023, Tokyo Electron had unusedlines of credit amounting to ¥329,512 million ($2,176,292
thousand) and ¥329,491 million, respectively.
10. Employee Benefits
The Company and its domestic subsidiaries provide a cash
balance plan and a non-contributory retirement and severance
benefit plan as defined benefit plans, and provide a defined
contribution plan as defined contribution plans for theiremployees. Further, certain consolidated overseas subsidiaries
provide defined benefit plans and defined contribution plans fortheir employees.

TOKYO ELECTRON Consolidated Financial Statements FY2024

2023

2024

Service cost

¥6,743¥6,724$44,539

Interest cost

1,699

1,017

11,221

Expected return on plan assets(2,042)(1,834)(13,492)

Net actuarial gain amortization(2,191)(482)(14,475)

Prior service cost amortization

(186)

—

(1,232)

Other

139

212

919

¥4,160¥5,638$27,479

Total defined benefit costs forthe years ended March 31, 2024
and 2023(5) Remeasurements of defined benefit plans
2024

Work in process, raw materials
and supplies

8. Pledged Assets
Tokyo Electron did not hold any assets pledged as collateral as ofMarch 31, 2024 and 2023.

2024

Thousands of
U.S. dollars

Millions of yen

Thousands of
U.S. dollars¥284,451

Thousands of
U.S. dollars

Millions of yen

Thousands of
U.S. dollars(2) Movement of plan assets

The amounts of change in inventory provision included
in cost of sales in the consolidated statements of income forthe years ended March 31, 2024 and 2023 were an increaseof ¥27,786 million ($183,519 thousand) and ¥10,788 million,
respectively.

11(4) Defined benefit costs

Millions of yen$67,136—

Millions of yen

Defined benefit plans(1) Movement of defined benefit obligations

Foreign currency exchange
rate changes
Balance at March 31, 2024
and 2023

1,283¥90,989

246¥81,7858,477$600,950(3) Reconciliation from defined benefit obligations and plan
assets to net defined benefit liabilities (assets)
Millions of yen

2024
Funded defined benefit
obligations¥63,1622023¥63,718

Thousands of
U.S. dollars

2024

2024

2023

Prior service cost (before tax)

¥1,305¥—$8,624

Actuarial gain (before tax)

9,532

4,826

62,959¥10,838¥4,826$71,583

Total(8) Actuarial assumptions
The principal actuarial assumptions as of and for the years ended
March 31, 2024 and 2023 are as follows:
2024

2023

Discount rate

1.57%

1.02%

Long-term expected rate of return

2.00%

2.00%

The expected rates of salary increase for the years ended
March 31, 2024 and 2023 are also considered as one of theactuarial assumptions, and are set based on the salary increaseindex by age group as of January 1, 2024 and January 1, 2019,respectively.
Defined contribution plans
The contributions of the Company and its subsidiaries to thedefined contribution plans are ¥4,328 million ($28,588 thousand)and ¥3,928 million for the years ended March 31, 2024 and 2023,
respectively.
11. Income Taxes
Significant components of the deferred tax assets and liabilities
as of March 31, 2024 and 2023 are as follows:(6) Accumulated remeasurements of defined benefit plans
Millions of yen

2024
Prior service cost that is yet to berecognized (before tax)

¥1,305

2023
¥—

2023

2024

Elimination of unrealized profit ininventories¥29,498¥29,274$194,826

Devaluation of inventories

19,912

11,781

131,517

Software

18,774

17,079124,000

Net defined benefit liabilities

16,80318,483110,982

Research and development
expenses

14,345

6,963

94,748

Accrued warranty expenses

9,137

9,287

60,347

Accrued employees’ bonuses

7,408

7,795

48,931

Other

31,812

32,214

210,105
975,459

Deferred tax assets$8,624

15,391

5,858

101,652

Total¥16,697¥5,858$110,276(7) Plan assets
1. Plan assets comprise:
2024

2024

2024

Net actuarial gain (loss) that is
yet to be recognized (before tax)

2023

Life insurance company general account

29%

30%

Total gross deferred tax assets

147,694

132,879$417,163

Alternative investments (Note)24

26

Less valuation allowance(2,333)(6,102)(15,408)

15

14

Total deferred tax assets

145,361

126,776960,05014(538,828)

Plan assets(90,989)(81,785)(600,950)

Bonds

Funded status(27,827)(18,066)(183,787)

Equity securities

14

Cash and cash equivalents

02

Deferred tax liabilities

Other

18

14

Total

100%

100%

Net unrealized gains on
investment securities

Unfunded defined benefit
obligations

54,54059,057360,217

Net defined benefit liabilities at
March 31, 2024 and 2023

¥26,713¥40,991$176,430

Net defined benefit liabilities

56,13960,366

370,777

Net defined benefit assets(29,426)(19,374)(194,347)

Net defined benefit liabilities at
March 31, 2024 and 2023

¥26,713¥40,991

Thousands of
U.S. dollars

Millions of yen

Thousands of
U.S. dollars$176,430

Note: Alternative investments mainly consist of multi-assets, hedge funds, realestate, infrastructure and insurance-linked securities.

2. Long-term expected rate of return
Current and target asset allocations, and historical and expected
returns on the various categories of plan assets have been
considered in determining the long-term expected rate of return.

(81,584)(47,422)

Undistributed earnings ofsubsidiaries(15,006)(12,848)(99,114)Other(12,496)(8,587)(82,534)

Total deferred tax liabilities(109,087)(68,857)(720,477)

Net deferred tax assets¥36,273¥57,918$239,573

The ultimate realization of deferred tax assets is dependent
upon the generation of future taxable income during the period
in which temporary differences become deductible and net
operating loss carryforwards are available to be utilized. For
assessment of the realizability of deferred tax assets, management
considers the scheduled reversal of deferred tax liabilities, future
estimated taxable income, tax planning strategies and level of net
operating loss carryforwards, if any, in accordance with accounting
principles generally accepted in Japan.

TOKYO ELECTRON Consolidated Financial Statements FY2024

12

Based on the level of historical taxable income and future
estimated taxable income over the periods which the temporary
differences are deductible and net operating loss carryforwards
are available to be utilized, management believes Tokyo Electron
will realize the benefits of deferred tax assets, net of valuation
allowance, as of March 31, 2024 and 2023.
The Company and its wholly-owned domestic subsidiaries
apply a group tax sharing system for corporate tax purposes.
The Company and its wholly-owned domestic subsidiaries
account for, and make disclosures in relation to, corporate tax,
local tax and related tax effects in accordance with “Practical
Solution on the Accounting and Disclosure Under the Group Tax
Sharing System” (PITF No.42, August 12, 2021).
Significant components of the difference between thestatutory and effective tax rates for the years ended March 31,
2024 and 2023 are as follows:

13. Other Comprehensive Income
Other comprehensive income for the years ended March 31, 2024
and 2023 is as follows:
Thousands of
U.S. dollars

Millions of yen

2024

2023

2024

¥112,296¥20,356$741,671

2023

30.62%

30.62%Net unrealized gains arisingduring the year

Adjustments:

Reclassification adjustments

(659)

(239)

(4,357)

Tax credits(5.55)

Sub-total, before tax

111,636

20,116

737,314

Tax expense(34,171)(6,165)(225,686)

Sub-total, net of tax

77,465

13,951

511,627(6.87)

Difference in statutory tax rates of subsidiaries(0.88)(1.15)

Others, net

0.25(0.61)

Effective tax rate

23.12%

24.53%

12. Net Assets
Net assets comprises four subsections, which are shareholders’equity, accumulated other comprehensive income, sharesubscription rights and non-controlling interests.
Under Japanese laws and regulations, the entire amount
paid for new shares is required to be designated as common
stock. However, a company may, by a resolution of the board of
directors, designate an amount not exceeding one half of theprice of the new shares as additional paid-in capital which isincluded in capital surplus.
In cases where dividend distribution of surplus is made, thelesser of an amount equal to 10% of the dividend or the excess, ifany, of 25% of common stock over the total of additional paid-in
capital and legal reserve must be set aside as additional paidin capital or legal reserve. Legal reserve is included in retained
earnings in the accompanying consolidated balance sheets.
Both appropriations of legal reserve and additional paid-in
capital used to eliminate or reduce a deficit generally require aresolution of the shareholders’ meeting.
Additional paid-in capital and legal reserve may not be
distributed as dividends. All additional paid-in capital and legal
reserve may be transferred to other capital surplus and retained
earnings, respectively, which are potentially available fordividends.
The Company is subject to restriction of dividends basedon the Japanese Corporate Act, which restricts the amount ofdividends to retained earnings on a consolidated basis.
The Company’s articles allow for the distribution of earnings
to shareholders on dates other than the mid-term and yearend, by a resolution of the board of directors in accordance withJapanese laws and regulations.

TOKYO ELECTRON Consolidated Financial Statements FY2024¥1 ($0.01) and ¥1 for the years ended March 31, 2024 and 2023,
respectively.

A summary of stock options outstanding and exercisable asof March 31, 2024 and 2023 is as follows:
2024

Number ofshares2023

Weighted-average exercise priceYen

U.S. dollars

Weighted-average exercise price

Number ofsharesYen

1,558,800

¥1

$0.01

2,113,500¥1Granted206,000

1

0.01

231,000

1

Exercised393,600

1

0.01

785,700

1

—

—

—

—

—

Outstanding at the beginning of year

Expired (forfeited)
Outstanding at the end of year

1,371,200

1

0.01

1,558,800

1

Exercisable at the end of year

724,200

1

0.01

725,400

1

Note:The Company implemented a 3-for-1 common stock split on April 1, 2023. The numbers after the stock split are presented above.

Net unrealized gains on
investment securities

2024
Statutory tax rate in Japan13

At the board of directors’ meeting held on May 10, 2024, thedistribution of cash dividends amounting to ¥113,767 million($751,384 thousand) was resolved. Such appropriations havenot been accrued in the consolidated financial statements asof March 31, 2024 since they are recognized in the period inwhich they are resolved at the board of directors’ meeting.
The dividends of ¥113,767 million include ¥339 million ($2,243
thousand) related to treasury stock held by the BIP/ESOP Trusts.

Adjustments during the year

28,921

12,341

191,012

Reclassification adjustments

35

—

232

28,956

12,341

191,244

(33)

(21)

(220)

28,923

12,320191,024

13,216

5,308

87,291(15,707)

Sub-total, before tax
Sub-total, net of tax
Remeasurements of defined
benefit plans
Adjustments during the year
Reclassification adjustments(2,378)(482)

Sub-total, before tax

10,838

4,826

71,583Tax expense(3,294)(1,443)(21,759)

Sub-total, net of tax

7,543

3,382

49,823

Share of other comprehensive
income of associates accounted
for using the equity method
Adjustments during the year
Total other comprehensive
income

2024

385

183

2,547

¥114,318¥29,837$755,023

14. Share Subscription Rights
Stock option plan
The Company’s shareholders have approved annual stock option
plans for directors and selected employees since the year ended
March 31, 1999. The options under the plans vest immediately orover three-year period with restriction on exercise up to three
years after the date of grant, and have an exercise period ofseventeen years from the date on which the options become
exercisable.
Options to purchase 206,000 shares and 231,000 shares of
the Company were authorized and granted at exercise prices of¥3,716

Millions of yen

2024

2023
¥3,048$24,542

Valuation method of fair value per unit of stock options
Fair value as of the grant date for stock options granted for theyears ended March 31, 2024 and 2023 was ¥18,039 ($119.14) and¥13,198 per unit, which were evaluated as set out below.
The Company implemented a 3-for-1 common stock split on
April 1, 2023. The price of fair value presented above is based on
the price after the stock split.
(1) Valuation method used: Black-Scholes model(2) Major underlying assumptions and estimates:
19th Stock
Acquisition Rights

15. Leases
Future minimum lease payments on non-cancelable operatingleases are as follows:

Thousands of
U.S. dollars

Millions of yen

Selling, general andadministrative expenses

Foreign currency translation
adjustments

Tax expense

Amounts expensed related to stock options
The amounts expensed related to stock options for the years
ended March 31, 2024 and 2023, are as follows:

18th Stock
Acquisition Rights

Volatility (Note 1)

36.63%

36.25%

Expected residual period (Note 2)

5.18 years

5.17 years

Expected dividends (Note 3)¥519 ($3.43)
per share¥1,092
per share

Risk-free interest rate (Note 4)

0.09%

0.10%

Notes: 1. Calculated based on the stock price performance for the period
corresponding to the expected residual period (from April 2018 to June 2023
and April 2017 to June 2022 for 19th and 18th Stock Acquisition Rights).
2. Calculated based on past actual results and forecast of the exercise ofstock options.
3. Based on the dividends paid for the years ended March 31, 2023 and 2022,
and the years ended March 31, 2022 and 2021, for 19th and 18th Stock
Acquisition Rights.
Expected dividends for 19th and 18th Stock Acquisition Rights are basedon the dividend after the stock split and based on the dividend before thestock split, respectively.
4. Based on Japanese government bond yield corresponding to the expected
residual period.

Due within one year

Thousands of
U.S. dollars

2024

2023

2024

¥4,369¥4,286$28,858

Due over one year

10,065

12,166

66,476

Total¥14,434¥16,453$95,335

Note: Leases of consolidated overseas subsidiaries as a lessee are not included in theamounts above, since they are recorded on the balance sheets in principle.

16. Fair Value of Financial Instruments
Policy for financial instruments
Tokyo Electron limits its fund management to short-term bankdeposits and low-risk financial instruments.
Trade receivables, which consist of notes and accounts
receivable, are exposed to credit risk in the event of nonperformance by the counterparties. Execution and managementof credit risk, maturity and receivable balance are conductedpursuant to the internal management rules for credit control.
Credit risk of major customers is assessed on a regular basis.
Short-term investments consist of short-term deposits andlow-risk financial instruments and Tokyo Electron trade withhighly-rated financial institutions to mitigate credit risks.
Investment securities mainly consist of equity interests inlisted companies exposed to equity market risks. Conditions,
including market prices, for these investment securities aremonitored on a regular basis.
Trade payables, which consist of notes and accounts payable,
mainly mature within one year. Trade payables are exposed toliquidity risks which are managed through activities such as
implementing cash management plans.
See Note 17 for detailed discussion on derivative financial
instruments.

(3) Method of estimating the number of vested stock options
It is not necessary to estimate the number of vested stock
options as the rights to exercise stock options are vested
immediately when granted.

TOKYO ELECTRON Consolidated Financial Statements FY2024

14

Fair value of financial instruments
Carrying amount and estimated fair value of financial
instruments as of March 31, 2024 and 2023 are set out below.

Thousands of U.S. dollars

Carrying
amountEstimated
fair value1

Short-term investments¥10,165¥10,169

Investment securities

273,346

273,346

Hedge accounting not applied

95

95

Hedge accounting applied

—

—

2024:
AssetsDerivatives (see Note 17)

Millions of yen
Carrying
amount2023:

Estimated
fair value1

AssetsShort-term investments¥0¥1

162,389

162,387

Hedge accounting not applied

48

48

Hedge accounting applied——

Investment securities
Derivatives (see Note 17)

Thousands of U.S. dollars

Carrying
amountEstimated
fair value1

Short-term investments$67,136$67,162

Investment securities

1,805,342

1,805,342

2024:
AssetsDerivatives (see Note 17)
Hedge accounting not applied

631

631

Hedge accounting applied——

Notes: 1 . A part of Cash and cash equivalents and Short-term investments, Notes
and accounts receivable - trade, and contract assets and Trade notes andaccount payable are omitted because they are cash or settled in a shortperiod of time and the fair values approximate the book values.
2. The following financial instruments classified as stocks without market
prices and similar financial instruments are not included in the above.
Thousands of
U.S. dollars

Millions of yen

2024
Unlisted stocks—
697

Hierarchy by level for fair value of financial instruments
The fair values of financial instruments are classified into
the following three levels according to the observability andsignificance of the inputs used in fair value measurements:
Level 1: F air values measured based on quoted prices of theassets or liabilities being measured which are available inactive markets as observable valuation inputs
Level 2: F air values measured based on inputs other than inputs
included within Level 1 as observable valuation inputs
Level 3: F air values measured based on unobservable valuation
inputsWhen several inputs that have a significant impact on fairvalue measurements are used, the fair values are categorized
into the lowest level in the hierarchy for fair value measurements
among the levels to which each of the inputs belongs.

After 1 through5 years¥461,608¥—

10,939—105(1) Financial instruments recorded at fair value in the
consolidated balance sheets
Millions of yen

Fair value
2024:

Level 1

Level 2

Level 3

Within 1 year
¥472,471

¥—

628

—

440,009——151

Short-term investments
Investment securities

TOKYO ELECTRON Consolidated Financial Statements FY2024

Level 2

Level 3

Total

Investment securities
Other securities
Equity securities$1,805,342

Currency-Related
Transactions
Total

$—

$— $1,805,342

—

631

—

$1,805,342$631$— $1,805,973

Millions of yen

Fair value
2024:

Level 1

Level 2

Level 3¥—

¥10,000¥—

Held-to-maturity
securities
Corporate bonds
Other
Total

—

169

—

169

¥—

¥10,169¥—¥10,169¥—¥—

Fair value—

95¥273,346¥95¥—¥273,442

Level 2

Total

Other securities¥162,237¥—¥—¥162,237

Derivatives
Currency-Related
Transactions

—

48

—

48

¥162,237¥48¥—¥162,286

Fair value

Gains(losses)

¥104

¥0

¥0

6,849

102

102

Short-term investments
and Investment securities

Buy U.S. dollars

6,690

(4)

(4)

Held-to-maturity
securities

Buy EURO

2,071

(2)

(2)

Buy Korean won

919

(0)

(0)

¥151

Buy GBP

477

0

0

¥151

Buy Singapore dollars

448

0

0

Buy Swiss francs

210

(0)

(0)

Total

¥17,771

¥95

¥95

2023:

Contract
amountFair value

Buy U.S. dollars¥7,085¥40

Buy Chinese yuan

6,448

(3)

(3)

Buy Korean won

1,547

13

13

Other

¥—
¥—

Level 2

Level 3

¥151

¥—

¥151

¥—

Total

Fair value
Level 1

Level 2

Level 3

Held-to-maturity
securities
Other
Total

$—

$66,045$—

Millions of yen

Total

Short-term investments
and Investment securities

Corporate bonds

Level 3

Millions of yen

Contract
amountBuy Chinese yuan

2024:
95

1. Derivative financial instruments not designated as hedging
instruments

Sell U.S. dollars

Level 1

¥273,346—

17. Derivative Financial Instruments
Tokyo Electron and certain subsidiaries are subject to risk fromadverse fluctuations in foreign currency exchange rates in
its operating and financing activities. The Group enters into
forward foreign exchange contracts in order to hedge such risks,
but do not enter into such transactions and currency option
contracts for speculative purposes. The Group implements a
ratio analysis of the total cumulative cash flow fluctuations
or market fluctuations for the hedged item or the hedging
instrument to assess effectiveness of hedging for all derivativetransactions, except for transactions where the critical termsof the hedging instrument and hedged item match and theGroup could conclude that changes in fair value or cash flows are
expected to completely offset. Execution and management of allderivative transactions are conducted pursuant to the internalmanagement rule.
The estimated fair values of the derivative financial
instruments as of March 31, 2024 and 2023 are as follows:

2024:

Thousands of U.S. dollars¥273,346

Level 1Equity securities¥10,000

Millions of yen

Total

Derivatives
Currency-Related
Transactions

Total

Short-term investments
and Investment securities

Other securities
Equity securities

631(2) F inancial instruments other than those recorded at fair value
in the consolidated balance sheets

Total

Investment securities

Total

After 1 through5 years

Level 1

2023:

Investment securities

Within 1 year

Fair value
2024:

Derivatives

2023:

Millions of yen

15

72,2512,500,936

Fair value

378,666

Trade notes and accounts receivable

Trade notes and accounts receivable

Millions of yen

Trade notes and accounts receivable

Cash and cash equivalents$—$28,791¥3,118

Short-term investments

2023:$3,048,733

Reported amount in balance sheet

Millions of yen

Cash and cash equivalents

Cash and cash equivalents¥4,3593. Maturities of financial assets and securities are as follows:

2024:

Within 1 year

Total

2024

2023

2024:
Short-term investments

Millions of yen

Thousands of U.S. dollars

After 1 through5 years$66,045

—

1,117

—

1,117

$—

$67,162$—$67,162

Buy Singapore dollars

Derivatives
The fair values of currency-related transactions are calculated using
the discounted present value method with observable inputs such as
interest rates and foreign exchange rates and are classified as Level 2.

¥40

702

(2)

(2)

Total

¥15,784

¥48

¥48

2024:

Contract
amountNote: Explanation of valuation techniques and valuation inputs used in fair value
measurements
Short-term investments and investment securities
Listed securities and bonds are evaluated using the market prices. Listed
securities are traded on active markets, so the fair values are classified
as Level 1. On the other hand, bonds held by Tokyo Electron are tradedinfrequently on the market and their values are not recognized as themarket price on an active market, so the fair values are classified as Level 2.

Gains(losses)Thousands of U.S. dollars

Fair value

Gains(losses)

Sell U.S. dollars

$692

$1

$1

Buy Chinese yuan

45,238676

676

Buy U.S. dollars

44,185(27)(27)

Buy EURO

13,682(15)(15)

Buy Korean won

6,070

(2)

(2)

Buy GBP

3,151

0

0

Buy Singapore dollars

2,961

2

2

Buy Swiss francs

1,388

(4)

(4)

$117,370

$631

$631

Total

TOKYO ELECTRON Consolidated Financial Statements FY2024

16

2. Derivative financial instruments designated as hedging
instruments
The contract amounts of forward foreign exchange contracts,
entered into to hedge future transactions and receivables andpayables denominated in foreign currencies that have beentranslated by the corresponding contracted rates are none as ofMarch 31, 2024 and 2023.
18. Revenue Recognition
Disaggregation of revenue arising from contracts withcustomers
Disaggregation of revenue by geographic regions, and types of
products and services for the years ended March 31, 2024 and2023 are as follows:
Millions of yen

Thousands of
U.S. dollars

2024

2023

2024

Geographic regions:Japan¥184,982¥239,937$1,221,734

North America

168,116

344,346

1,110,339Europe119,408

184,261

788,642South Korea

284,455

358,700

1,878,706

Taiwan205,500

432,653

1,357,244

China

813,307527,438

5,371,558

121,688361,645

OthersTotal

54,756¥1,830,527¥2,209,025 $12,089,872

Products and services:
New equipment (Note 1)
Field solution services and Others(Note 1)Total

1,401,819

1,734,806

9,258,436

428,707474,218

2,831,435¥1,830,527¥2,209,025 $12,089,872

Notes: 1. "New equipment" includes sales of new equipment and set-up services tobe transferred for equipment. "Field solution services and Others" includes
spare parts, services and modifications for installed equipment, and sales
for used equipment.
2. Net sales amounting to ¥1,830,527 million and ¥2,209,025 million
recorded in the consolidated statements of income for the years ended
March 31, 2024 and 2023, respectively, are mainly “Revenue arisingfrom contracts with customers”. Revenue arising from other sources
is included in the “Disaggregation of revenue arising from contracts
with customers” because its amount is immaterial. Most of the revenue
arising from contracts with customers is arising from goods or services
transferred to customers at a point in time. Maintenance services includedin field solution services are revenue arising from services provided tocustomers over time and are recognized revenue over time. However, it
is not separately disclosed in the “Disaggregation of revenue arising fromcontracts with customers” because it is immaterial.

Basic information for the understanding of revenue arisingfrom contracts with customers
Information on performance obligations (the nature of
performance obligations (the nature of the goods or services
that Tokyo Electron has promised to transfer to the customer))In the business of semiconductor production equipment,
Tokyo Electron delivers equipment and provides equipment
installation at customer’s sites and adjustment to adequately
demonstrate equipment performance to satisfy customers’
specifications.
It also provides field solution services such as spare parts,
17

TOKYO ELECTRON Consolidated Financial Statements FY2024

services and modifications for installed equipment, and sales forused equipment.
Regarding sales of equipment, performance obligations
related to transfer of goods and provision of set-up services are
separately identified. Regarding sales of spare parts, performanceobligations related to each spare parts delivery are separately
identified. Regarding modifications, modification parts delivery
and modification operation by using these modification parts
are identified as a single performance obligation. In addition,
provision of maintenance services is identified as a performanceobligation.
Timing of satisfaction of performance obligations (Timing ofrevenue recognition)
Revenue related to equipment delivery is principally recognizedwhen the equipment is transferred to the customer because
the legal title to the equipment is transferred to the customer,
the customer obtains control of the equipment, and theperformance obligation is considered satisfied.
Revenue related to provision of set-up services is principally
recognized when the equipment is installed at the customer’ssite and adjustment to adequately demonstrate equipment
performance to satisfy customers’ specification is completed,and the performance obligation is considered satisfied.
Revenue related to spare parts is recognized when spareparts are transferred to the customer because the legal title
to spare parts is transferred to the customer, the customer
obtains control of spare parts, and the performance obligation isconsidered satisfied.
Revenue related to modifications is principally recognizedwhen the modification is completed, and the performanceobligation is considered satisfied.
Revenue related to maintenance services is recognizedover the term of the contracts with customers because theperformance obligation is satisfied over time.
Payment terms
The transaction consideration is received according to thecontract terms with customers. Since the period between
satisfaction of performance obligations and payments oftransaction consideration generally does not exceed one year,
transaction consideration does not include a significant financing
component. According to the contracts with customers, in somecases advance payments are received before all performanceobligations are satisfied.
Determination of transaction priceTransaction prices are determined at the time of thecommencement of the transaction with customers.
In cases where a series of transactions for sales of equipment
are transacted with the same customer, there can be special
prices such as corresponding to purchase quantities. For suchseries of transactions with special prices, on the grounds that thesales price of transactions fluctuates based on future purchasequantities, the special prices are treated as variable considerationand included 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 the variable consideration is subsequently
resolved. Transaction prices are estimated including variableconsideration by using customers’ planned purchase quantities
or planned sales quantities to which special prices apply, which
are indicated when such series of transactions with special prices
are proposed. Estimation of variable consideration is periodicallyrevised based on the status of transactions with customers.
Allocation of transaction price to performance obligations
Allocation of transaction prices to performance obligations
reflects the amount of consideration expected to be received
in exchange for transferring goods or services to customers.
Transaction prices are allocated to each performance obligation
identified in the contracts based on the relative stand-alone
selling prices of goods or services. If the stand-alone selling priceof goods or services is not directly observable, the stand-alone
selling price is estimated based on the cost approach by adding
an appropriate margin to expected costs calculated based on
historical actual costs.
Relationship between satisfaction of performanceobligations based on contracts with customers and cash
flows arising from the contracts, and information on theamount and timing of revenue expected to be recognizedfrom the next fiscal year from contracts with customers
existing as of this fiscal year end(1) Balances of contract assets and contract liabilities
Thousands of
U.S. dollars

Millions of yen

Receivables from contracts
with customers

March 31, 2024

April 1, 2023

March 31, 2024
$2,501,633¥378,772¥440,009

Contract assets

12,65024,87983,554Contract liabilities

289,905

289,169

1,914,703

Millions of yen

Receivables from contracts with customers

March 31, 2023

April 1, 2022

¥440,009¥415,333

Contract assets

24,87918,614Contract liabilities

289,169

102,555

The contract assets principally relate to Tokyo Electron’s rights
to consideration for performance obligations transferred but notbilled at the fiscal year end. The contract assets are transferred
to receivables arising from contracts with customers when therights for the considerations become unconditional.
The contract liabilities principally relate to advances received
from customers before all performance obligations are satisfied.
The contract liabilities are reclassified to revenue when revenue
is recognized.
The revenue recognized during the fiscal years ended March
31, 2024 and 2023 that was included in the contract liabilities
balance as of April 1, 2023 and 2022 was ¥240,506 million($1,588,445 thousand) and ¥87,424 million, respectively.
Increases and decreases of contract assets are principally

due to revenue recognition and reclassification to accounts
receivable.
Increases and decreases of contract liabilities are principally
due to advance received and revenue recognition.
The revenue recognized during the years ended March 31,
2024 and 2023 for which performance obligations were satisfied
or partially satisfied in the previous period was immaterial.
(2) T ransaction prices allocated to remaining performanceobligations
The practical expedient is applied for this Note for transaction
prices allocated to remaining performance obligations. The
contracts for which original expected terms of the contract is
one year or less are not included in this Note.
The amount of performance obligations not satisfied or
partially not satisfied is ¥263,711 million ($1,741,705 thousand)and ¥364,073 million as of March 31, 2024 and March 31,
2023, respectively, and approximately 80% and 70% of such
performance obligations are expected to be recognized asrevenue within one year after March 31, 2024 and March 31, 2023,
respectively.
The total amount of transaction prices allocated to theremaining performance obligations does not include theestimated amounts of variable consideration described in“Determination of transaction price” above.
19. Segment Information
The description of this section has been omitted as the Group
has a single segment of semiconductor production equipment(SPE).
Changes in reportable segments
While reportable segments of the Group were previouslyclassified into SPE and flat panel display (FPD) production
equipment, those segments have been changed into a single
segment of SPE from the fiscal year ended March 31, 2024.
This change is due to the judgement that, based on facts
that the impact from the FPD production equipment businesshas become insignificant while SPE market has made steady
growth and is expected to grow higher in future and the 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 the Group from the viewpoint of
the business development and the decision-making process forallocating management resources of the Group.
As a result of this change, the description of segment
information for the fiscal years ended March 31, 2024 and 2023
have been omitted.

TOKYO ELECTRON Consolidated Financial Statements FY2024

18

Other information(1) Domestic and overseas net sales by destination for the years ended March 31, 2024 and 2023 are as follows:

21. Subsequent Events
Share repurchase
At the Board of Directors meeting held on May 10, 2024, the Company resolved to acquire its own shares under the provisions of its
Articles of Incorporation pursuant to paragraph 1, Article 459 of the Companies Act, as set out below.

Millions of yen

2024:

Japan

North America

EuropeSouth Korea

Taiwan

China

Other

Net sales¥184,982¥168,116¥119,408¥284,455¥205,500¥813,307¥54,756

Total¥1,830,527

Notes: 1. Sales are classified in countries or regions based on location of customers.
2. Net sales of North America include sales in the U.S.A. of ¥168,079 million.

1. Reason for acquisition of own shares
Tokyo Electron intends to acquire its own shares in accordance with its capital policy while taking into account its current cash position
and investment capital for medium- to long-term revenue growth.

Millions of yen

2023:

Japan

North America

EuropeSouth Korea

Taiwan

China

Other

Total

Net sales¥239,937¥344,346¥184,261¥358,700¥432,653¥527,438¥121,688¥2,209,025

Other

Total

Notes: 1. Sales are classified in countries or regions based on location of customers.
2. Net sales of North America include sales in the U.S.A. of ¥344,310 million.
Thousands of U.S. dollars

2024:

Japan

North America

EuropeSouth Korea

TaiwanChina

Net sales$1,221,734$1,110,338$788,642$1,878,706$1,357,244$5,371,558$361,645 $12,089,870

2. Details of acquisition( 1 ) Type of shares to be acquired:(2) Total number of shares to be acquired:		(3) Total cost of acquisition:(4) Period of acquisition:(5) Method of acquisition:

Shares of common stock
Up to 3.5 million shares(Equivalent to 0.8% of outstanding shares excluding treasury stock)
Up to ¥80 billion ($528 million)
From May 13, 2024 to July 31, 2024
Acquisition through market transactions on the Tokyo Stock Exchange

Note: Net sales of North America include sales in the U.S.A. of $1,110,097 thousand.

(2) N et property, plant and equipment by location as of March 31,
2024 and 2023 are as follows:
Millions of yen

2024:

Japan

Other

Property, plant and equipment¥252,076¥85,290

Total

Dividends per share has been presented on an accruals
basis and include, in each fiscal year ended March 31, dividends
approved or to be approved after March 31 but applicable to theyear then ended.

¥337,366

Millions of yen

2023:

Japan

Other

Property, plant and equipment¥190,993¥68,095

Total

2024:

Japan

Other

Total

$1,664,860$563,306$2,228,167

The basis for the calculation of net income per share for the
fiscal years ended March 31, 2024 and 2023 is as follows:¥259,088

Thousands of U.S. dollars

Property, plant and equipment

Millions of yen

Thousands of U.S. dollars

Name of customer

2024

2024

Samsung Electronics Co., Ltd.

¥237,441$1,568,200

Note: The amounts include sales to the customer and its subsidiaries.
Millions of yen

Name of customer

2023

Intel Corporation¥357,636

Taiwan Semiconductor Manufacturing Company Ltd.

320,427

Samsung Electronics Co., Ltd.

275,916

Note: The amounts include sales to the customer and its subsidiaries.

20. Per-Share Information
Net income per share and net assets per share are computed
based on the weighted-average number of shares of common
stock outstanding during each year. Net income-diluted pershare is computed based on the weighted-average number ofshares of common stock outstanding during each year afterincorporating the dilutive potential effect of shares of common
stock to be issued upon the exercise of stock options.

19

TOKYO ELECTRON Consolidated Financial Statements FY2024

2024

2023

2024

Net income per share of common
stock - Basic
Net income attributable toowners of parent(3) Major customer information
Net sales to external customers that represent 10 percent ormore of net sales are as follows:

Thousands of
U.S. dollars

Millions of yen¥363,963¥471,584$2,403,828

Less components not pertaining
to holders of common stock

—

—

—

Net income pertaining to holdersof common stock¥363,963¥471,584$2,403,828

Weighted-average numberof shares of common stock
outstanding (thousands)

464,389

467,926

Net income per share of common
stock - Diluted
Adjustment of net income
attributable to owners of parent——

Increase in number of common
stock (Thousands of share)

1,515

1,843

Increase in number of sharesubscription rights(Thousands of share)

1,515

1,843

—

Note: The Company implemented a 3-for-1 common stock split on April 1, 2023.
Each of the numbers above are calculated on the assumption that stock split
was implemented at the beginning of the year ended March 31, 2023.
The shares of the Company held by "Executive compensation BIP Trust"and "Share-delivering ESOP Trust", which are recorded in “Treasury stock, atcost” under shareholders’ equity, are included in the treasury stock which isdeducted in calculating the per-share information.
The number of treasury shares deducted in the calculation of net assets per
share was 1,386 thousand shares and 1,502 thousand shares as of March 31,
2024 and 2023, respectively, and the average number of treasury sharesdeducted in the calculation of net income per share and fully diluted net
income per share was 1,425 thousand shares and 1,614 thousand shares forthe fiscal years ended March 31, 2024 and 2023, respectively.

TOKYO ELECTRON Consolidated Financial Statements FY2024

20

Independent Auditor’s Report
Reasonableness of the valuation of inventories related to semiconductor production equipment
The key audit matterTo the Board of Directors of Tokyo Electron Limited:
Report on the Audit of the Consolidated Financial Statements

OpinionWe have audited the accompanying consolidated financial statements of Tokyo Electron Limited (“the Company”) and its
consolidated subsidiaries (collectively referred to as “the Group”), which comprise the consolidated balance sheets as at
March 31, 2024 and 2023, the consolidated statements of income, comprehensive income, changes in net assets and cash
flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as at March 31, 2024 and 2023, and its consolidated financial performance and its consolidated
cash flows for the years then ended in accordance with accounting principles generally accepted in Japan.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our
audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our audit of theconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.

In the consolidated balance sheet for the current fiscal year,
the Company recognized Inventories of ¥762,957 million, which
represented approximately 31% of total assets in the consolidated
financial statements. Most of the inventories related to
semiconductor production equipment.
As described in Note 3 “Significant Accounting Estimates, 1.
Valuation of inventories” to the consolidated financial statements,
inventories are measured in principle at the lower of either theacquisition cost or the net selling price at the end of the fiscal
year. However, inventories aged over a certain holding period
are classified based on the use and salability and are thensystematically written down according to their classification. In
addition, the carrying amount of inventories to be disposed of iswritten down to the estimated disposal value.
The valuation of inventories aged over a certain holding period
and the identification of finished goods and work in process
inventories to be disposed of are based on management’s
forecasts of future demand and prospects of market environment.
Among the markets in which the Group participate, thesemiconductor market is susceptible to fluctuations due to ashort-term imbalance between supply and demand, which could
result in an unforeseen rapid market contraction. Therefore, theforecasts of future demand and prospects of market environment
involve uncertainty and management’s judgment thereon may
have a significant effect on the valuation of inventories.
We, therefore, determined that our assessment of thereasonableness of the Company’s valuation of inventories related
to semiconductor production equipment was one of the mostsignificant in our audit of the consolidated financial statements forthe current fiscal year, and accordingly, a key audit matter.

How the matter was addressed in our audit
The primary procedures we performed to assess whether theCompany’s valuation of inventories related to semiconductor
production equipment was reasonable included the following:(1) Internal control testing
We tested the design and operating effectiveness of certain of theCompany’s internal controls relevant to the valuation of inventories.
In this assessment, we focused our testing on controls designed todetermine the rates of write-down for each holding period on the
carrying amount of inventories aged over a certain holding period
and to identify finished goods and work in process inventories tobe disposed of in a comprehensive manner.
(2) Assessment of whether the valuation of inventories aged
over a certain holding period was reasonable
The rates of write-down by holding period adopted bymanagement in applying the method that writes down the
carrying amount of inventories on a systematic basis according totheir holding periods were determined based on management’s
forecasts of future demand and prospects of market environment.
In order to assess the appropriateness of assumptions underlying
the rates of write-down determined by management, we:• evaluated the rates of write-down by holding period determinedby management by referencing published demand forecasts forsemiconductor production equipment and the customers’ capital
investment plans; and• compared the amount of the write-down of inventories aged
over a certain holding period, calculated using the rates of writedown by holding period determined by management, with ourown estimate of the write-down of those inventories.
(3) Assessment of whether finished goods and work inprocess inventories to be disposed of were identified in acomprehensive mannerAmong finished goods and work in process inventories aged over acertain holding period, we assessed the accuracy of management’s
sales forecasts by comparing the past forecast for a selection of finishedgoods and work in process inventories held for a long period with actual
sales results and examining the causes of variances between the two.
In order to assess the appropriateness of assumptions related to sales
forecasts adopted by management in identifying finished goods andwork in process inventories to be disposed of, we primarily:• evaluated the basis for management judgment on its sales
forecasts for finished goods and work in process inventories held
for a long period by inquiring of management and inspecting
relevant documents.

Other Information
The other information comprises the information included in the disclosure documents that contain or accompany the audited
consolidated financial statements, but does not include the consolidated financial statements and our auditor’s report thereon.
We do not perform any work on the other information as we determine such information does not exist.
21

TOKYO ELECTRON Consolidated Financial Statements FY2024

TOKYO ELECTRON Consolidated Financial Statements FY2024

22

Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for theConsolidated Financial Statements

We communicate with corporate auditors and the board of corporate auditors regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordancewith accounting principles generally accepted in Japan, and for such internal control as management determines is necessary toenable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.

We also provide corporate auditors and the board of corporate auditors with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’ performance of their duties
with regard to the design, implementation and maintenance of the Group’s financial reporting process.

From the matters communicated with corporate auditors and the board of corporate auditors, we determine those mattersthat were of most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Fee-related Information

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards
generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these consolidated financial statements.

Fees paid or payable to our firm and to other firms within the same network as our firm for audit and non-audit services
provided to the Company and its subsidiaries for the current year are 471 million yen and 156 million yen, respectively.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue asa going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally
accepted in Japan.

As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with accounting
standards generally accepted in Japan, the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within theGroup to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision andperformance of the group audit. We remain solely responsible for our audit opinion.

Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2024
are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 1 to the consolidated financial statements.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public
Accountants Act of Japan.
/S/ Michitaka Shishido
Designated Engagement Partner
Certified Public Accountant/S/ Akira Nishino
Designated Engagement Partner
Certified Public Accountant/S/ Shin Suzuki
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Tokyo Office, Japan
June 18, 2024

Notes to the Reader of Independent Auditor’s Report:
This is a copy of the Independent Auditor’s Report and the original copies are kept separately by the Company and KPMG AZSA LLC.

23 TOKYO ELECTRON Consolidated Financial Statements FY2024

TOKYO ELECTRON Consolidated Financial Statements FY2024

24

Akasaka Biz Tower, 3-1 Akasaka 5-chome
Minato-ku, Tokyo 107-6325, Japan
Tel: +81-3-5561-7000
www.tel.com

TEL is a registered trademark or a trademark of Tokyo Electron Limited in Japan and/or other countries.

PR1 62-0029