TOKYO ELECTRON

April 30, 2013

Consolidated Financial Review
for the Year Ended March 31, 2013
Company name:
URL:
Telephone number:
Stock exchange listing:Tokyo Electron Limited
http://www.tel.com(03) 5561-7000
Tokyo Stock Exchange 1st Section (Code 8035)

Notes: 1. The accompanying financial statements have been prepared in accordance with accounting
principles and practices generally accepted in Japan.
2. Amounts are rounded down to the nearest million yen.

1. Consolidated financial highlights for the year ended March 31, 2013
Year ended
March 31, 2012
March 31, 2013
Net sales (Millions of yen)
633,091
497,299
Operating income (Millions of yen)
60,443
12,548
Ordinary income (Millions of yen)
64,046
16,696
Net income (Millions of yen)
36,725
6,076
Net income per share (Yen)
205.04
33.91
Fully diluted net income per share (Yen)
204.7233.85
Return on equity (%)
6.3
1.0
Ordinary income to total assets (%)
8.0
2.1
Operating income to net sales (%)
9.5
2.5
Comprehensive income:Year ended March 31, 2013: 15,826 million yen
Year ended March 31, 2012: 36,953 million yen
Profit/loss on equity method:Year ended March 31, 2013: - million yen
Year ended March 31, 2012: - million yen(1) Operating results(2) Financial position
As ofMarch 31, 2012
Total assets (Millions of yen)
Net assets (Millions of yen)
Equity ratio (%)
Net assets per share (Yen)
Equity: 593,032 million yen (as of March 31, 2013)
586,789 million yen (as of March 31, 2012)

783,610598,60274.9
3,275.14

As ofMarch 31, 2013
775,527
605,12776.5
3,309.58(Millions of yen)

(3) Cash flow

Year ended
March 31, 2012
March 31, 2013
29,712
84,266(8,352)(141,769)(27,334)(10,625)
158,776
85,313

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at end of period

1TOKYO ELECTRON

2. Dividends
Year ended
March 31, 2012
1Q-end dividend per share (Yen)
2Q-end dividend per share (Yen)
3Q-end dividend per share (Yen)
Year-end dividend per share (Yen)Annual dividend per share (Yen)
Total dividend (Millions of yen)
Payout ratio (%)
Dividend on equity (%)

Year ended
March 31, 2013

53.00
27.00
80.00
14,33139.0
2.5

Year ending
March 31, 2014
(Forecast)

25.00
26.00
51.00
9,138
150.4
1.5

25.00
25.00
50.00
68.9
-

The interim dividend for the second quarter ended September 2012 was made up of ordinary dividend 15 yen
and commemorative dividend 10 yen.
The year-end dividend for the year ended March 2013 was made up of ordinary dividend 16 yen
and commemorative dividend 10 yen.

3. Earnings forecasts for the year ending March 31, 2014
Year ending
September 30, 2013
(Cumulative)
Net sales (Millions of yen)

252,000

570,000

Operating income (Millions of yen)

(8,000)18,000Net income (Millions of yen)

(3,000)13,000Net income per share (Yen)(16.74)72.55

4. Others(1)

Important changes in subsidiaries: None
(Changes on specific subsidiaries with changes in scope of consolidation)(2)

Changes in accounting principles, accounting estimation and restatement
1. Changes in accounting policies along with changes in accountins standards: Yes
2. Other changes of accounting policies besides number 1 above: None
3. Changes in accounting estimation: Yes
4. Restatement: None

(3)

Year ending
March 31, 2014

Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of March 31, 2013:180,610,911 shares

As of March 31, 2012:

180,610,911 shares

2. Number of shares of treasury stock
As of March 31, 2013:

1,424,203 shares

As of March 31, 2012:

1,446,079 shares

3. Average number of shares outstanding
As of March 31, 2013:

179,177,531 shares

As of March 31, 2012:

179,112,754 shares

2

TOKYO ELECTRON(Reference) Non-consolidated financial review for the year ended March 31, 2013
(1) Operating results
Note: Percentages indicate changes from the previous fiscal year.
Year ended
March 31, 2012
Net sales (Millions of yen)
Operating income (Millions of yen)
Ordinary income (Millions of yen)
Net income (Millions of yen)
Net income per share (Yen)
Fully diluted net income per share (Yen)

516,524
7,131
44,28639,144218.55218.20March 31, 2013%
(9.3)
(76.7)
8.1
22.6-

375,485
5,717
27,31422,984128.28128.04As ofMarch 31, 2012
599,411375,76162.5
2,090.84

As ofMarch 31, 2013
570,042
390,30368.2
2,170.52(2) Financial position

Total assets (Millions of yen)
Net assets (Millions of yen)
Equity ratio (%)
Net assets per share (Yen)
Equity: 388,929 million yen (as of March 31, 2013)
374,605 million yen (as of March 31, 2012)* Notes on the status of auditing procedure execution:
This earnings report is outside the jurisdiction of auditing procedures outlined in the Financial Instruments andExchange Act and remain incomplete at the time of announcing this report.
* Explanation of the appropriate use of earnings forecast:
The performance forecasts and estimates stated in this Financial Review are based on certain assumptions
judged to be reasonable at the present time in light of currently available information. Consequently, actual
operating results may differ substantially from the projections in this Financial Review.
The company plans to hold a financial meeting for analysts and investors on Tuesday, April 30, 2013. The
supplementary materials to these financial reports that will be handed out at this meeting will be posted
simultaneously on our company website.

3%(27.3)(19.8)(38.3)(41.3)-

TOKYO ELECTRON

1. Operating Results(1) Analysis of Operating Results(i) Business Environment during the Fiscal Year Ended March 31, 2013
Concerns regarding the economy increased globally, including uncertainty regarding the future due to theprolonging debt crisis in Europe and financial problems in the United States as well as slowing growth inChina and other emerging economies, but there were signs of a moderate recovery at the end of the fiscal
year. Significant correction was made to yen appreciation at the end of the fiscal year, but the Japanese
economy trended sluggishly and the recovery was only moderate when considered from a whole-year
perspective, due to the impact of the long-term high value of the yen and concerns about a global economic
recession.
In the electronics industry, the primary area of the Tokyo Electron Group’s business activities, smartphone
penetration rates were high and were a driving force in the industry, but demand for PCs and televisions
was sluggish and the business environment remained challenging.

(ii) Overview of Profit and Losses during the Fiscal Year Ended March 31, 2013
Under these circumstances, profit and losses for the fiscal year were as follows.
Consolidated net sales for the fiscal year decreased by 21.4% from the previous fiscal year, to 497,299
million yen. Domestic net sales decreased by 30.8%, to 118,503 million yen, and overseas net sales
decreased 18.0%, to 378,795 million yen, with overseas net sales accounting for 76.2% of consolidated net
sales. Consolidated orders for the fiscal year decreased 16.7%, to 450,627 million yen, and consolidated
order backlogs fell 16.5%, to 180,829 million yen.
Cost of sales for the fiscal year dropped 19.7%, to 338,545 million yen, and gross profit decreased 24.9%,
to 158,754 million yen. As a result, gross profit margin decreased by 1.5 percentage points, to 31.9%.
Selling, general, and administrative (SG&A) expenses decreased 3.2% to 146,206 million yen, and the ratio
to consolidated net sales increased by 5.5 percentage points to 29.4%.
As a result of these developments, operating income was down 79.2% to 12,548 million yen. Ordinary
income, adjusted for non-operating income of 6,125 million yen and non-operating expenses of 1,977
million yen, was down 73.9% to 16,696 million yen.
Meanwhile, extraordinary income was 1,070 million yen, compared to extraordinary losses of 3,444 million
yen in the previous fiscal year.
Income before income taxes for the fiscal year decreased 70.7% to 17,766 million yen, and net income
decreased 83.5% to 6,076 million yen.
As a result, net income per share was 33.91 yen (205.04 yen in the previous fiscal year).

4

TOKYO ELECTRON(iii) Overview of Operations during the Fiscal Year Ended March 31, 2013 by Business Segment

Semiconductor Production Equipment
Demand for semiconductors used in smartphones was favorable, but overall, the phase of inventory
adjustments continued as a result of sluggish PC sales. Capital investment by semiconductor
manufacturers in logic-based products was robust, but investment in memory continued to slump. In thesecond half of the year, however, manufacturers made production and inventory adjustments including ashift from PC semiconductors to mobile device semiconductors, and the balance of supply and demand formemory semiconductors began to improve. The strong demand for mobile memory is expected to lead toorders for production equipment in the future. Given these circumstances, net sales from externalcustomers in this segment during the fiscal year were 392,026 million yen (down 18.0% compared to theprevious year).
During the fiscal year, the TEL Group launched the “NT333™” atomic layer deposition system, “Triase+™
EX-II™ TiN” single wafer deposition system, and other new products.

FPD/PV (Flat-Panel Display/Photovoltaic Panel) Production Equipment
In the television market, sales were sluggish, particularly in developed countries, as a result of cooling
consumer confidence caused by uncertainty concerning future economic developments and a reversal of
the replacement demand created in the lead-up to the switch to digital broadcasting. Sales of panels for
smartphones and tablet PCs, primarily high-performance units, were robust, but the downturn in PC sales
continued, and as a result panel manufacturers did not invest to increase production capacity and the FPD
production equipment market remained slow. Demand in low-latitude regions is expected to grow forthin-film silicon photovoltaic panel production equipment, a business which the TEL Group entered from a
medium- to long-term perspective, and the Group reinforced development to raise conversion efficiency.
Given these circumstances, net sales from external customers in this segment were 20,160 million yen(down 71.2% compared to the previous year).

Electronic Components and Computer Networks
In the electronic components segment, demand in Japan for semiconductor products was low, as wasdemand for consumer electronic devices and industrial equipment, but overseas business grew as a resultof an expansion of commercial rights in Asia. In the computer networks segment, sales of computer network
products and maintenance services were strong. Given these circumstances, net sales from externalcustomers in this segment were 84,664 million yen (down 0.2% compared to the previous year).

Other
Net sales from external customers in this segment were 448 million yen (down 2.9% compared to the5

TOKYO ELECTRON

previous year).

(For reference）
Consolidated（ Millions of yen）
Year ended March 31, 2013

Year ended
March 31, 2012
Net Sales
Semiconductor Production Equipment
Japan
U.S.
EuropeKorea
TaiwanChina
S.E.Asia
FPD/PV Production Equipment
Electronic Components & Computer Networks
OthersOperating Income(loss)
Ordinary Income(loss)
Net Income(loss)

1Q

First
Half

2Q

3Q

SecondHalf

4Q

Full Year633,091

134,179

132,421266,600

91,910138,788

230,699497,299

477,873
82,887
114,82149,325
108,740
75,01825,395
21,68369,88884,867461
60,44364,04636,725

108,703
10,032
26,62910,457
24,21429,338
5,666
2,363
4,769
20,605
101
9,283
11,2485,720

105,963
10,18629,152
12,944
14,46329,456
6,196
3,563
4,460
21,859
137
2,918
4,211
370

214,666
20,21855,782
23,402
38,677
58,795
11,863
5,927
9,230
42,465238
12,202
15,4596,090

68,056
6,349
28,8797,673
5,759
15,238
2,153
2,003
4,682
19,10566(6,865)(6,654)(7,026)109,30313,70932,431
7,626
13,07431,352
5,935
5,174
6,247
23,093
142
7,211
7,891
7,012

177,359
20,05961,31015,29918,833
46,591
8,088
7,177
10,93042,199
209
346
1,237
(14)

392,026
40,278117,092
38,701
57,510105,386
19,951
13,104
20,16084,664448
12,548
16,696
6,076

Note: Offset elimination has been carried out on the dealing between segments.

(iv) Projected Operating Results for the Next Fiscal Year Ending March 31, 2014
In the semiconductor market, the balance between supply and demand has started to improve as a result ofstrong demand for mobile terminals, and we expect a recovery in demand for our core semiconductor
production equipment starting mid-year. In the FPD segment, investment in large-panel production
equipment has been pushed back and the market for production equipment contracted sharply, but newinvestment in large-panel production equipment in China is expected to resume and demand for mediumand small-panel production equipment will likely remain strong. The financial forecast for the next fiscal year(the fiscal year ending March 31, 2014) based on these projections is set forth below.

Consolidated Forecast(Billions of yen, Y/Y change)

Year ending March 31, 2014

Interim

Net Sales

252.0
190.0
20.0
42.0
0.0
(8.0)
(3.0)

Semiconductor Production Equipment
FPD/PV Production Equipment
Electronic Components & Computer Networks
OthersOperating Income(loss)
Net Income(loss)

Full Year-5.5%-11.5%
116.7%
-1.1%
-

570.0
430.0
51.0
89.0
0.0
18.0
13.0

14.6%
9.7%
153.0%
5.1%
43.4%
113.9%

Note: Offset elimination has been carried out on the dealing between segments.

Note: The financial forecasts and estimates stated in this announcement are based on certain assumptions judged to bereasonable by the TEL Group in light of information currently available concerning economic conditions in Japan and overseas,fluctuations in foreign exchange rates, and other factors that may have an impact on performance. The company does notpromise that the forecasts or estimates will be accurate.
They are therefore susceptible to the impact of many uncertainties, including market conditions, competition, the launching of

6

TOKYO ELECTRON

new products (and their success or failure), and global conditions in the semiconductor related industry. Consequently, actual
sales and profits may differ substantially from the projections stated in this announcement.

(2) Qualitative Information on Consolidated Financial Conditions(i) Financial Conditions
Current assets at the end of the fiscal year were 521,501 million yen, down 85,549 million yen compared tothe end of the previous fiscal year. The major factors influencing this result were a 49,804 million yen
decrease in trade notes and accounts receivable, a 21,292 million yen decrease in short-term investments
included in securities, a 13,772 million yen decrease in inventory, and a 13,797 million yen increase in cash
and deposits.
Tangible fixed assets increased by 8,812 million yen from the end of the previous fiscal year, to 135,697
million yen.
Intangible fixed assets increased by 55,214 million yen from the end of the previous fiscal year to 59,918
million yen as a result of an increase in goodwill from acquisitions of companies in the United States andEurope and other factors.
Investments and other assets increased by 13,439 million yen from the end of the previous fiscal year, to58,410 million yen.
As a result, total assets decreased by 8,082 million yen compared to the end of the previous fiscal year, to775,527 million yen.
Current liabilities were down 18,123 million yen compared to the end of the previous fiscal year, to 106,670
million yen. The major factors causing the decline were a 10,725 million yen decrease in trade notes andaccounts payable and a 7,388 million yen decrease in customer advances.
Long-term liabilities were up 3,516 million yen compared to the end of the previous fiscal year, to 63,730
million yen.
Net assets were 605,127 million yen, up 6,524 million yen from the end of the previous fiscal year. The main
factors were an increase due to a net income of 6,076 million yen reported for the fiscal year, an increase of
8,674 million yen from translation adjustments due to effects from the depreciation of the yen, and adecrease due to payment of 4,837 million yen in year-end dividends for the previous fiscal year andpayment of 4,479 million yen in interim dividends for the current fiscal year. The equity ratio was 76.5%.

(ii) Cash Flow
Cash and cash equivalents at the end of the fiscal year decreased by 73,462 million yen compared to theend of the previous fiscal year, to 85,313 million yen. The combined balance including the 154,815 million
yen in time deposits and short-term investments with periods to maturity or redemption of at least three

7

TOKYO ELECTRON

months that are not included in cash and cash equivalents, was 240,129 million yen, down 7,495 million yen
from the end of the previous fiscal year. The overall situation regarding cash flow during the fiscal year was
as follows.
Cash flow from operating activities increased by 54,554 million yen compared to the previous fiscal year to84,266 million yen. The main positive factors included 17,766 million yen in net income before income taxes,
a 57,549 million yen decrease in trade notes and accounts receivable, 26,630 million yen in depreciation
and amortization, and a 20,278 million yen decrease in inventories. The main negative factors were a
15,481 million yen decrease in accounts payable and a 12,455 million yen decrease in customer advances.
Cash flow from investing activities was negative 141,769 million yen, compared to negative 8,352 million
yen in the previous year. This was primarily the result of a 66,056 million yen increase in time deposits andshort-term investments, 55,079 million yen in purchase of investments in subsidiaries resulting in changes
in the scope of consolidation, and 19,012 million yen in payments for purchase of tangible fixed assets.
Cash flow from financing activities was negative 10,625 million yen, primarily as a result of the payment of
9,316 million yen in dividends. Cash flow from financing activities in the previous fiscal year was negative
27,334 million yen.

Fiscal year ended
March 31, 2012

Fiscal year ended
March 31, 2013

74.9
108.3
0.1
691.25

76.5
96.2
0.0
1,227.59

Equity ratio (%)
Equity ratio at market value (%)
Interest-bearing debt to cash flow ratio (times)
Interest coverage ratio (times)
Equity ratio: (Equity / Total assets) x 100

Equity ratio at market value: (Market capitalization / Total assets) x 100
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest expenses* All indicators are calculated using financial figures on a consolidated basis.
* Market capitalization is calculated based on the following formula: Closing stock price at fiscal year-end × Number of shares
outstanding at fiscal year-end after deduction of treasury stock.
* Cash flow from operating activities corresponds to the cash flow from operating activities in the consolidated statement of cash
flow. Interest-bearing debt includes all liabilities for which the Company is paying interest among the liabilities reported on the
consolidated balance sheet. Interest expenses correspond to the interest paid in the consolidated statement of cash flow.

(3) Basic Policy on Profit Allocation and Payment of Dividends for Current and Next Fiscal Years
The dividend policy of TEL is to link dividend payments to business performance and earnings on an
ongoing basis. Its basic policy for returning profits to shareholders is to maintain a payout ratio of around

8

TOKYO ELECTRON

35% based on consolidated net income.
TEL will effectively use internal capital reserves and concentrate investment in growth areas to raise
corporate value through earnings growth, and TEL provides returns directly to shareholders by linking
dividend payments to business performance and earnings.
In the current fiscal year (ended March 2013), the figures announced on July 30, 2012 remain unchanged,
and a year-end dividend of 26 yen per share (a 16-yen ordinary dividend and a 10-yen commemorative
dividend) is planned. As a result, the dividend for the entire fiscal year including the interim dividend (25 yen
per share) is 51 yen per share.
For the following fiscal year (ending March 31, 2014), the above dividend policy will remain unchanged, andin addition to performance-based policies, TEL takes account of the Group financial conditions, global
financial and economic trends, and plans to pay a total dividend of 50 yen per share (a 25-yen interim
dividend and 25-yen year-end dividend) as a special measure on shareholder returns, significantly
surpassing the 35% target payout ratio.

Current fiscal year
(ended March, 2013)

2Q-end25 yen(Ordinary dividend)
15 yen(Commemorative dividend)
10 yenDividend per share
Year-end
26 yen(Ordinary dividend)
16 yen(Commemorative dividend)
10 yenTotal
51 yen(Ordinary dividend)
31 yen(Commemorative dividend)
20 yen25 yen25 yen50 yenNext fiscal year
(ending March, 2014)

2. Management Policy(1) Basic Management Policy
The basic management policy of the TEL Group is to raise its corporate value through profit-oriented
operations by placing the highest priority on customers, enhancing product and technology development
capabilities, and invigorating its workforce.
Under this fundamental policy, the TEL Group will engage in the development of vibrant and internationallycompetitive companies, with high growth potential and profitability that are attractive to investors.

(2) Management Tasks
The Group, one of the world’s leading suppliers of semiconductor and flat-panel display (FPD) production
equipment, engages in dynamic business activities in the electronics industry, a field characterized by rapid
technological innovation, with its corporate mission to support the development of a dream-inspiring society
through our cutting-edge technologies and reliable services.

9

TOKYO ELECTRON

In the markets in which we operate, the increasing market domination by our customers (semiconductor
manufacturers and others) has continued, and so it is vital that we acquire and maintain our high position interms of market share in the fields in which we are already operating. In addition, it is important that wedevelop products and establish businesses that can serve as new sources of earnings. Furthermore, we willcontinue our efforts to reduce fixed costs. It is vital that we enhance synergy effects between the four
overseas companies acquired during the fiscal year and the TEL Group's technological and marketing
service capabilities. With these issues in mind, we have adopted the following priority policies.

(i) Improving product strength to expand market share
To acquire and maintain a high share in markets where we are already operating, further improvements tothe processing performance, productivity and reliability of our products are required to resolve issues facedby our customers. The TEL Group will work to increase market share by improving the competitiveness of
our products such as etching equipment, cleaning equipment, coater/developer, and wafer deposition
equipment. In particular, we are aiming to substantially expand our market share in the field of etchingequipment, a market expected to grow in future years, by distinguishing our technology from competitors,
increasing the pace of development, promoting cost reductions, and other measures. In the cleaning
equipment segment, we will generate synergy effects between our existing “CELLESTA™” single-wafer
cleaning system series and the products and technologies of TEL FSI, Inc., which was recently acquired,and work to increase sales of the “Certas™” series of best-selling gas chemical etching system. We will
accelerate development of semiconductor production equipment compatible with large-diameter siliconwafers to solidify our position. In the FPD production equipment business, we will use our plant in Kunshan
City, China to raise profitability.

(ii) Technological innovation for continuous growth
The TEL Group is focusing its efforts on the development of new business such as creating equipment andtechnologies for mass production of MRAM, which is gaining prominence as next-generation memory,through collaboration between industry, government and academia as well as creating mass production
technologies for large organic EL panels. The thin-film solar panel production equipment segment is
expected to become a new core business in the medium- to long-term, and we are accelerating
development to achieve high conversion rates at the earliest possible time, the key to low-cost electricity
generation based on the technological capabilities of TEL Solar which was recently acquired. In addition,
we are selecting and consolidating research development topics based on future business feasibility andinvestment efficiency.

10

TOKYO ELECTRON(iii) Pursuit of best solutions
As increasing market domination by our customer base continues, we will look to strengthen ourpartnerships with our customers through implementing a sales and service system. These policies will allow
us to contribute to the technological development of our customers at an early stage and thus understandtheir needs so as to provide them with the best solution quickly. In back end of line fields such as test
systems and packaging, we are also providing best solutions through integrated proposals that include
multiple products to make use of our strengths. In addition to the marketing and sale of cutting edge
equipment, we are also working to expand our business, responding to shift to longer equipment lifecycles
in our field solutions business. This covers areas such as the moving and remodeling and improvement ofsold equipment and the spare parts business.

(iv) Measures to fulfill our corporate social responsibility
Based on our "Safety First" principle, the TEL Group believes that ensuring that all individuals involved inour business activities can work safely, use safe equipment, and remain healthy is an important part of ourcorporate social responsibility. Based on the principle of "solving environmental problems with technology",
to promote more environmentally friendly practices at customer factories, we are developing manufacturing
equipment which will lead to reduced emission of greenhouse gases, reduced power consumption andlower water usage. Moreover, as a group, we will promote activities such as the introduction of photovoltaic
power generation equipment in our main factories to reduce the environmental impact of our businesspractices and logistics. Furthermore, we are building relationships built on trust through communications
with local residents and various other stakeholders to maintain our status as a good corporate citizen withstrong community ties and to achieve growth in tandem with society.

In addition to the policies described above, for the human resources who will be the source of growth, we
think that the placement of the right people in the right positions and proactive development of training
programs to educate our human resources to equip them to respond to changes in the businessenvironment will help the Group to make rapid progress in the future. We will also continue to provide
evaluation and compensation which fairly recognize the extent of individual contributions, and seek tocreate a company that is brimming with dreams and vitality.

The Group will continue, on the basis of its profit-oriented management, to further enhance its corporate
value by placing customers first, improving product and technology development capabilities, strengthening
international competitiveness, and motivating employees.

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TOKYO ELECTRON

Consolidated Balance Sheet(Millions of yen)
As ofMarch 31, 2013

As ofMarch 31, 2012ASSETS
Current assets
Cash and deposit

35,834

49,632

Trade notes and accounts receivable

150,305

100,500

Securities

211,790

190,497

Merchandise and finished goods

101,789

87,397Work in process

35,10433,402

Raw materials and supplies

12,575

14,898Deferred income taxes

23,546

15,669Others37,48030,682

Allowance for doubtful accounts(1,376)(1,179)607,050

521,501

143,461

163,857

Accumulated depreciation(79,077)(92,009)

Buildings and structures, net

64,384

71,84785,499108,360

Accumulated depreciation(63,835)(81,233)

Machinery and carriers, net

21,664

27,126

Total current assets
Long-term assets
Tangible fixed assets
Buildings and structures

Machinery and carriersLand

26,26025,030

Others39,84937,781

Accumulated depreciation(25,272)(26,087)

Others, net

14,576

11,693

126,885

135,697

Total tangible fixed assets
Intangible fixed assets
Goodwill-

38,372Others

4,703

21,545

Total intangible fixed assets

4,703

59,918Investment securities

16,081

18,669Deferred income taxes

17,58523,205

Others15,152

18,647

Allowance for doubtful accounts(3,848)(2,112)

Investments and other assets

Total investments and other assets
Total long-term assets
Total assets

12

44,971

58,410176,560

254,026

783,610775,527

TOKYO ELECTRON(Millions of yen)
As ofMarch 31, 2012

As ofMarch 31, 2013

LIABILITIESCurrent liabilities
Trade notes and accounts payable

46,98636,261

Accrued warranty expenses

8,903

8,344

Others

68,90362,064

Total current liabilities

124,794

106,670

54,646

56,643Long-term liabilities
Accrued pension and severance costs
Others

5,567

7,086

Total long-term liabilities

60,21363,730185,007

170,400

54,961

54,961

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,02378,023Retained earnings

471,186

467,920(9,747)(9,588)594,422591,315

3,575

4,214

Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(51)

(14)

Translation adjustments(11,157)(2,483)

Total accumulated other comprehensive income(7,633)

1,716

Subscription rights to shares

1,156

1,374

Minority interests

10,656

10,720Total net assets

598,602605,127

783,610775,527

Total liabilities and net assets

13

TOKYO ELECTRON

Consolidated Statement of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general & administrative expenses
Salaries and allowances
Research and development expenses
OthersTotal selling, general & administrative expenses
Operating income (loss)
Non-operating income
Interest income
Revenue from development grants
OthersTotal non-operating income
Non-operating expenses
Foreign currency translation loss
OthersTotal non-operating expenses
Ordinary income (loss)
Unusual or infrequent profit
Gain on sale of fixed assets
Reversal of allowance for doubtful accounts
Gain on collection written-off claims
OthersTotal unusual or infrequent profit
Unusual or infrequent loss
Loss on sale of fixed assets
Loss from earthquake damage
Loss on liquidation of subsidiaries and affiliates
Reorganization costs
Provision of allowance for doubtful accounts
Loss from restructuring
Loss on revaluation of investment securities
OthersTotal unusual or infrequent loss
Income (loss) before income taxes
Provision for income taxes and enterprise taxes
Prior year's corporate tax
Deferred income taxes
Total income taxes
Income (loss) before minority interests
Minority interests
Net income (loss)

14

Year ended
March 31, 2012

Year ended
March 31, 2013

633,091
421,646
211,444497,299
338,545
158,754

21,446
81,50648,048151,001
60,443

24,61973,24848,338146,206
12,548

775
1,130
2,192
4,097

1,392
987
3,745
6,125

31
462
494
64,046

1,520
457
1,977
16,696

565

943
558
1,501

1,437
171
2,174
406
935
1,848
848
696
883
5,619
60,602
15,022
8,400
23,422
37,179453
36,725

153
134
132
11
431
17,766
6,254
2,194
2,958
11,408
6,358
282
6,076

TOKYO ELECTRON

Consolidated Statement of Comprehensive Income(Millions of yen)

Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Translation adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners
Comprehensive income attributable to minority interests

15

Year ended
March 31, 2012

Year ended
March 31, 2013

37,179

6,358

768
(68)
(925)
(225)
36,953

651
55
8,760
9,467
15,82636,531422

15,425400

Consolidated Statements of Changes in Net Assets

TOKYO ELECTRON(Millions of yen)
Year ended
March 31, 2012

Year ended
March 31, 2013

54,961
54,961

54,961
54,961

78,045(22)
78,02378,02378,023457,658(23,101)
36,725(96)471,186

471,186(9,316)6,076(24)
467,920(10,484)(12)749(9,747)(9,747)(15)
173(9,588)580,180(23,101)
36,725(12)
630
594,422594,422(9,316)
6,076
(15)
148
591,315

Shareholders' equity
Common stock
Balance at beginning of period
Balance at end of period

Capital surplus
Balance at beginning of period
Disposal of treasury stock
Balance at end of period

Retained earnings
Balance at beginning of period
Cash dividends
Net income (loss)
Disposal of treasury stock
Balance at end of period

Treasury stock
Balance at beginning of period
Purchase of treasury stock
Disposal of treasury stock
Balance at end of period

Total shareholders' equity
Balance at beginning of period
Cash dividends
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Balance at end of period

16Consolidated Statements of Changes in Net Assets

TOKYO ELECTRON(Millions of yen)
Year ended
March 31, 2012

Year ended
March 31, 2013

2,807
768
3,575

3,575
638
4,214

Deferred gains or losses on hedges
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

(12)
(38)
(51)

(51)
36
(14)

Translation adjustments
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period(10,234)(923)(11,157)(11,157)
8,674(2,483)

Total accumulated other comprehensive income
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period(7,439)(194)(7,633)(7,633)
9,349
1,716

1,499
(342)
1,156

1,156
217
1,374

10,56096
10,656

10,65663
10,720584,801(23,101)
36,725
(12)
630
(440)
598,602598,602(9,316)
6,076
(15)
148
9,631
605,127

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

Subscription rights to shares
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

Minority interests
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

Total net assets
Balance at beginning of period
Cash dividends
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Net change except shareholders' equity
Balance at end of period

17

TOKYO ELECTRON

Consolidated Cash Flow
Year ended
March 31, 2012

(Millions of yen)
Year ended
March 31, 2013

Cash flow from operating activities
Income (loss) before income taxes
Depreciation and amortization
Amortization of goodwill
Increase in accrued pension and severance costs (decrease)
Increase in allowance for doubtful accounts (decrease)
Increase in accrued employees' bonuses (decrease)
Increase in accrued warranty expenses (decrease)
Interest and dividend revenue
Decrease in trade notes and accounts receivable (increase)
Decrease in inventories (increase)
Increase in accounts payable (decrease)
Decrease in prepaid consumption tax (increase)
Increase in accrued consumption tax (decrease)
Increase in customer advances (decrease)
Decrease in specific doubtful receivables (increase)
OthersSubtotal
Receipts from interest and dividends
Interest paid
Income taxes paid or refund (paid)
Net cash generated by operating activities

60,602
24,1972,422
2,111(2,506)
1,343(1,009)(15,540)
16,022(5,807)1,507(2,417)(4,566)(1,889)1,935
76,405
978(42)(47,628)
29,712

17,766
26,6301,141
1,864(2,166)(2,750)(2,918)(1,659)57,54920,278(15,481)2,862
596(12,455)
1,928(2,766)90,4201,586(68)(7,671)
84,266(35,000)
55,000(249,500)
260,500(36,010)
1,102(2,140)(15,056)
15,000(177,000)
111,000(19,012)
3,630(1,234)(348)(55,079)(1,955)(8,352)(1,097)(2,920)(141,769)(3,593)(12)(23,101)(626)(27,334)

(646)
(15)
(9,316)(646)(10,625)(299)(6,274)
165,050
158,776(5,334)(73,462)
158,776
85,313

Cash flow from investing activities
Payment into time deposits
Proceeds from time deposits
Payment for purchase of short-term investments
Proceeds from redemption of short-term investments
Payment for purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
Payment for purchase of intangible fixed assets
Purchase of investments in subsidiaries resulting in change in scope of
consolidation
Payments for transfer of business
OthersNet cash used in investing activities

Cash flow from financing activities
Net increase in short-term borrowings (decrease)
Net decrease in treasury stock (increase)
Dividends paid
OthersNet cash generated by financing activities

Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents (decrease)
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

18

TOKYO ELECTRON

Segment Information(i) Overview of reportable segments
The reportable segments by the company provide separate financial information pertaining to thevarious segments of the company, which is reviewed periodically by the management to evaluate
corporate performance as well as make decisions about the allocation of management resources.
The corporate structure consists of product and service segments based on business units (BUs),
and the reportable segments are as follows: Semiconductor Production Equipment, FPD/PV (Flat
Panel Display and Photovoltaic Panel) Production Equipment, and Electronic Components andComputer Networks.

The Semiconductor Production Equipment segment consists of coaters/developers, plasma etchsystems, thermal processing systems, single wafer deposition systems, cleaning systems used inwafer processing, wafer probers used in the wafer testing process and other semiconductor
production equipment, and we are engaged in the development, manufacturing, sales and provision ofmaintenance services, etc. for such products.
The FPD/PV Production Equipment segment consists of coaters/developers, plasma etch/ash
systems used in the manufacturing of flat panel displays, and photovoltaic panel production
equipment used in the manufacturing of thin film silicon photovoltaic panels, and we are engaged in
the development, manufacturing, sales and provision of maintenance services, etc. for such products.
The Electronic Components and Computer Networks segment consists of semiconductor products
centering on integrated circuits (IC), other electronic components, computer networks and software,etc., and we are engaged in the design, development, procurement, and sales, etc. for such products.

(ii) Ways of estimating net sales, profits or losses, assets, and other amounts in reportable segment.
Accounting method used in each reportable segment is almost the same as the method used toprepare consolidated financial statements. Inter-segment revenues or transfers are based onprevailing market prices. Moreover, shared assets have not been allotted to each reportablesegments, but associated costs have been distributed among them according to rational standards.

19

TOKYO ELECTRON(iii) Net sales, profits or losses, assets, and other amounts in reportable segment
Year ended March 31, 2013

(Millions of yen)
Reportable Segment
Semiconductor
Production
Equipment

Sales to external customers

Electronic
Components &Computer
Networks

FPD/PV
Production
Equipment

Others*1

392,026

20,16084,664

448

43

-

813

10,612

Net sales

392,069

20,16085,477

11,060

Segment income (loss)

48,600(6,355)

1,283

1,320

Segment assets

223,955

49,48947,557

1,549

Depreciation and amortization

12,330

461

448

77

Amortization of goodwill

1,038

-

102

-

Increase in the amount of tangible fixed
assets and intangible fixed assets

13,463

1,660

482

53

Inter-segment sales or transfers

Total Segment

Consolidated
Total
*3

Eliminations*2

Sales to external customers

497,299-497,299

Inter-segment sales or transfers

11,468(11,468)-

Net sales

508,768(11,468)

497,299

Segment income (loss)

44,849(27,082)

17,766

Segment assets

322,551

452,976775,527

Depreciation and amortization

13,317

13,313

26,630

Amortization of goodwill

1,141

-

1,141

Increase in the amount of tangible fixed
assets and intangible fixed assets

15,6609,834

25,494

Notes:*1
The "Others" segment includes all other businesses which are not included in the reported business segments, such as
the transportation of products of the Tokyo Electron Group companies, equipment leasing and insurance, etc.
*2 a) The eliminations of segment income or loss amounting to 27,082 million yen includes corporate expenses pertaining to
the corporate account which are not allocated to any specific reportable segments. The corporate account expenses
are mainly R&D expenses of 20,358 million yen, pertaining to fundamental research and element research conductedby the company not related to any of the reportable segments.
b) The main constituents of the eliminations of segment assets worth 452,976 million yen are cash, savings, securities,buildings and structures, etc. unallocated to each reportable segment.
c) The main constituent of the eliminations of tangible fixed assets and intangible fixed assets worth 9,834 million yen iscapital investments in buildings, structures, machinery and carriers unallocated to each reportable segment.
*3

Segment income or loss is adjusted against net income before taxes in consolidated income statement.

20

TOKYO ELECTRON(iv) Impairment loss on fixed assets in reportable segments
The information is not material and has been omitted.

(v) Amortization and un-depreciated balance of goodwill in reportable segments
Year ended March 31, 2013
Semiconductor
Production
Equipment(Millions of yen)
Electronic
Components &Computer
Networks

FPD/PV
Production
Equipment

Total Segment

Amortization of goodwill

1,038

-

102

1,141

Balance at end of period

14,56523,396411

38,372(vi) Income related to negative goodwill in reportable segmentsNone21