FY2013 Financial Forecast andManagement Policy

Hiroshi Takenaka, President & CEO
April 27, 2012

CORP IR/April 27, 2012

FY2012 Review

CORP IR/April 27, 2012

FY2012 Highlights►Enhanced our position in focused areas
Etch 26% 33%, Cleaning 14%16% (Source: Gartner)►R&D expenses for future growth: ¥81.5bn►Medium to long term strategic investment: ¥39.5bn
Miyagi new plant, Kunshan plant (China)
TEL Technology Center Tsukuba, TEL Technology Center Korea►Announced two acquisitions* in growth areas:Oerlikon Solar (Switzerland), NEXX Systems (US)* Oerlikon Solar (acquisition contract signed March 2）, NEXX Systems (signed March 16）, as of April 27 neither deal
has closed.

Corp IR/April 27, 201224

FY2012 New Products► High productivity models for finer design rulesSingle wafer cleaning system CELLESTA™ -i
Auto wet station EXPEDIUS™ -i
Scrubber system NS300+ HT
Coater/developer CLEAN TRACK™ LITHIUS Pro™ Z

CELLESTA™i

EXPEDIUSTM -i

NS300+ HT

CLEAN TRACK™ LITHIUS Pro™ Z► New products for 3DI chip stack technologies


Deep Si etcher for TSV Tactras™ FAVIAS
Dielectric liner deposition TELINDY PLUS™ VDP
Wafer bonder, de-bonder Synapse™ series

Tactras™ FAVIASTELINDY PLUS ™ VDP

Synapse™ VSynapse™ Z

Corp IR/April 27, 201225

Business Environment

CORP IR/April 27, 2012

Quarterly Orders(Billions of Yen)300

SPE Order
250

FPD/PVE Order

January-March/2012
SPE106.4（-27%）
FPD/PVE
2.8（-43%）
Total:109.3（-27%）( ): change from October-December/2011% is calculated using full amounts

200

150

100

000/7-9
10-1201/1-3
4-6
7-9
10-12
02/1-3
4-6
7-9
10-12
03/1-34-6
7-910-12
04/1-3
4-6
7-9
10-12
05/1-3
4-6
7-9
10-12
06/1-3
4-6
7-9
10-12
07/1-3
4-6
7-9
10-12
08/1-3
4-6
7-9
10-12
09/1-3
4-6
7-9
10-12
10/1-3
4-6
7-9
10-12
11/1-3
4-6
7-9
10-12
12/1-350

27
Corp IR/April 27, 2012

SPE Orders by Application: Equipment only
100%

58

22
24

26
25

18
15 18 3224

15 14
11/1-3

10-12

23 23
7-930
4-6

39

926 30

27 16
18
611

7
12/1-3

28

10-12

15 23

47 45

7-9

44

31 27 37

4-6

24 23

10/1-3

10-12

7-94-6

09/1-3

10-12

7-9

4-6

08/1-3

10-12

7-9

4-6

07/1-3

10-120%7-920%

4-6

40%

06/1-360%

05/10-1280%

15 17 1916 22
22 28 25 17 18
33
34 37
41
7 4 6 846 52
1541158
12 16 21
27
8 633
49 35
036
22315
37 21
26
42
935
12 12
16
10 19
1155 55
52
8 51
45
39
39
32
32
30
29 26 24 27
242222

Logic & others (MPU, System LSI, Others）
Logic foundry
FlashDRAM

28
Corp IR/April 27, 2012

Business Environment (as of April 2012)► SPE capex

Memory demand still weak, recovery of overall chip market is delayed, 2012
capex expected to be slightly below 2011. However, expected investment bylogic foundries due to uptake of cutting-edge 32/28nm process for mobiledevices might provide some upside.

► FPD capex
Sluggish market due to over-supply of panels, large decline expected in 2012.
However small/medium-sized panel equipment demand and growth inemerging nations TV markets expected to lead to growth in equipment market
in 2013.

► PV capex
Continued growth expected in medium/long-term, but due to overcapacity andresulting price declines, capex expected to remain sluggish.
29Corp IR/April 27, 2012

FY2013 Financial Estimates

CORP IR/April 27, 2012

FY2013 Financial Estimates(Billions of Yen)FY2012

1st half

FY2013 (E)2nd half
Full year

YoY change

633.0

275.0

315.0

590.0

477.8
69.8
84.8
0.4

223.0
9.0
43.0
-

251.0
11.0
53.0
-

474.0
20.0
96.0
-

60.4

12.5

34.5

47.0

9.5%

4.5%

11.0%

8.0%

-1.5pts

Income before income
taxes

60.6

12.5

35.5

48.0

-12.6

Net income

36.7

7.422.6

30.0

-6.7

EPS (Yen)

205.0

41.3

126.1

167.4

-37.6

Net sales
SPE
FPD/PVE
EC/CNOthersOperating income-7%-1%-71%+13%-13.4

1. SPE: Semiconductor Production Equipment, FPD/PVE: Flat Panel Display and Photovoltaic Cell Production Equipment,
EC/CN: Electronic Components and Computer Networks
2 YoY changes and profit ratios are calculated using full amounts, before rounding.

Recovery in sales and profits expected from second half
31
Corp IR/April 27, 2012

R&D Expenses and CAPEX（Billions of Yen）

（Billions of Yen）

100

R&D Expenses
81.575

設備投資
CAPEX
減価償却費
Depreciation

79.06070.5

66.060.9

 New Miyagi plant

54.05039.140250

 New Miyagi plant TEL Technology Center Tsukuba
 Kunshan (China) plant TEL Technology Center Korea

8020

FY08

FY09

FY10

FY11

FY12 FY13(E)022.7
21.4 18.123.0

FY08

FY09

39.5
28.0
24.1 24.0

20.0
14.9

17.7

FY10

FY11

FY12 FY13(E)FY13（E） R&D
 Existing business: around 60%
 New business field: around 40%(RLSA application expansion, 3DI, OLED, Test, PV,New memory, etc)

Maintain high R&D spending, get capex back to normal level
Corp IR/April 27, 201232

FY2013 Dividend Forecast
Dividend per share (E)InterimYear-end¥25Year total

¥55

¥80

20 yen memorial dividend of 50th anniversary is included above (interim 10, year-end 10).
(Yen)

150

125

100

500

Payout ratio 47.8%

114

103

80
4538

FY01

2055
248810

FY02

FY03

FY04

FY05

FY06

80

FY07

FY08

FY09

60 Common dividend

12FY10Memorial dividend(payout ratio 35.8%)

FY11

FY12 FY13(forecast)

Plan memorial dividend in addition to common dividend*Changed dividend payout ratio from around 20% to around 35% from FY11 year end dividend.
Corp IR/April 27, 201233

Business Strategies

CORP IR/April 27, 2012

SPE Business: Key Issues► Strengthen core areas► Expand business opportunities by using in-housetechnologies► Enhance development with leading customers fromupper streams► Strengthen high growth areas: Packaging and 3DI► Focus on achieving volume production technology ofpromising next generation devices (STT-MRAM)
35
Corp IR/April 27, 2012

Strengthen Core Areas
Etching system► Fiscal 2012 achievement• Share up from 26% to 33% (Source: Gartner)
 Oxide etch: Further expand in memory High Aspect Ratio Contact(HARC) process and logic BEOL interconnect formation process Poly Etch: Increase in gate formation related process for logic► Fiscal 2013 key issues• Unify development and production at new Miyagi plant, use new production
method to double development speed, halve production lead time
• Expand share in Poly Etch market with RLSA™ Etch

► Growth strategy• Develop technologies for Fin-FET, 3D-NAND and next generation memoryTactras™ RLSA ™ Etch

36

RLSA :Radial Line Slot Antenna
Corp IR/April 27, 2012

Strengthen Core Areas
Cleaning system► Fiscal 2012 achievement• Share: Up from 14% to 16% (Source: Gartner)
 Increase single wafer cleaning position at major logic makers
 Expand dry cleaning system share at major memory/logic makers► Fiscal 2013 key issues• Expand single wafer cleaning system share by introducing new product
CELLESTA™-i (announced July 2011)• Expand use of Certas in dry cleaning processes

CELLESTATM -i

Corp IR/April 27, 201237

Expand Business Opportunities by using
in-house Technology
Thermal processing system• Expand sales of new product NT333（Taking orders from Oct. 2012）
 High quality, high productivity ALD equipment with targeting SiO2
film formation
 Target markets: 1Xnm generation, 3D NAND, next generation
memory Steadily expand applications in single wafer deposition market

NT333

Single wafer deposition system••

Develop new metal deposition products
Expand sales of new products launched in gate formation related process
High-k CVD, SPAi Bais (plasma oxidation/nitridation tool)

Coater/Developer•

Accelerate cutting-edge lithography R&D EUV*1: Collaboration with imec, SEMATEC
 DSA*2: Collaboration with imec, Wisconsin University EB*3:
Participate in CEA-Leti imagine program consortium*1 Extreme Ultra-Violet*2 Direct Self Assembly*3 Electron Beam

38
Corp IR/April 27, 2012

Enhance Development with Customers from
Upper Streams

JapanU.S.

TDC, LPDC, TDI
Imec (Belgium）
CEA-Leti (France)

TEL
TELテクノロジーセンターアメリカ（TTCA
Technology Center America (TTCA） )Albany NanoTech (US)SEMATECH (US)TEL R&D base
Consortium

TaiwanTEL Technology Center Taiwan (TTCT)

Operation started in April 2012

Korea
TEL Technology Center Korea (TTCK)R&D closely linked to customers allows rapid response
Corp IR/April 27, 201239

Equipment Market for Wafer Level Packaging (WLP)
（M$）
3,000

Pre-entry area

CAGR 30%2,000

NEXX’s served
available market
ECD, PVD

1,000

0TEL ‘s served
available market
Coater, Etch, CVD,
Bonder/De-bonder,Clean, Prober
2011

2012

2013

2014

2015

2016

CAGR 30% in the WLP equipment market including for TSV(Source: TEL estimate based on Yole’s data)
Corp IR/April 27, 201240

Acquisition of U.S. NEXX Systems*
Contract date: March 15, 2012
Purchase cost: approx. $206M (¥17.0B)
Planned closing of acquisition: May 2012
 Deposition tools for Wafer Label Packaging (WLP)
Electrochemical Deposition (ECD), Sputter (PVD)
 High growth expected in WLP tool market
CAGR 30%, $2.5B market by 2015

 Has sold 142 units to over 40 customers, includingmajor customers
 Differentiated technologies (high-productivity tool)

Excellent track record as a leading company in the WLP market*Based in Billerica, Massachusetts, U.S., $76.5M in sales as of December 2011
Corp IR/April 27, 2012

41

TEL Products in Advanced Packaging Area
Tactras™ FAVIASDeep Si etcher

CELLESTA™+Cleaning

TELINDY PLUS™ VDP
Dielectric liner deposition
ApolloPhysical vapor deposition

CLEAN TRACK™ LITHIUS™ Pro
Patterning

NEXX* products

TSV
Cu Pillar

StratusElectro chemical deposition

Synapse™ V
Wafer bonder

Synapse™ Z
Wafer de-bonder

Strengthen product line-up in wafer level packaging market*NEXX Systems acquisition expected to complete in May 2012
Corp IR/April 27, 2012

42

Using STT-MRAM to Overcome Issues withExisting Devices
DRAM issues
1. Limits to large capacity
2. Volatile memory

Issues overcome by STT-MRAM Overcoming limits by magnetic
storage method
Miniaturization possible due to small capacitor surface area Non-volatile memory
Due to magnetic storage method

3. Difficult to achieve low
energy consumption

 Low energy consumption possible
Due to non-volatile memory

LOGIC issues
Limits to cache memory
Large surface area needed, in standby
mode requires energy source Reduced chip size and low energy
consumption possible
Due to low cell area and non-volatile

STT-MRAM is a strong candidate for next-generation devices
43
Corp IR/April 27, 2012

Joint Development of STT-MRAM withTohoku University

Magnetic materials technology
Device technology
Design technology

Process technology
Equipment technology

STT-MRAM• Joint development of integration technology and production technology• Establish volume production technology and production process technology
by combining each parties technology

Accelerate development aiming to rapidly attain volume
production capability
Corp IR/April 27, 201244

Initiatives in FPD Business► Launching high-performance and high-productivity dry-etch system forhi-resolution mobile panels and OLED TFT backplanes► Improving cost-competitiveness of coater/developer► Reduce costs and increase customer responsiveness at Kunshan plantin China► Reallocation of resources for OLED equipment development
Operations began March 2012

Location: Kunshan, Jiangsu, China
Floor area: 28,246m2

Tokyo Electron (Kunshan) Limited

45
Corp IR/April 27, 2012

Entry to OLED Equipment Market
Two types of deposition equipment to form light emission layer

Evaporation method

Inkjet method（TEL original technology）（JD with Seiko Epson）

 High precision deposition control
 Highly efficient usage of organic
materials
 High productivity of in-line method
 Space-saving design Next generation printing technology
 Minimize use of organic materials
 RGB coating by single application
 High scalability to large substrate

White OLED + color filter

RGB OLED

Glass Encapsulation
CathodeEvaporation/Inkjet

Organic Layer
Anode (ITO)

Extended LCD TFT technology

TFT(TEL products ：Coater/developer, Etcher )Glass Encapsulation

Light Output

Customer evaluation begins in 2012, target large size panel
production equipment market (from 2013)
Corp IR/April 27, 201246

Approach to PV business
160
Compound type120(GWp)

Thin-film silicon

80Single crystal silicon

4002010

2012

2014

2016

2018

2020

Advantages of thin film silicon PV
 Low materials cost in panel production and simple production process
Low production cost High generating capacity in high temperature environment and unfavorable
daylight regions
High electricity generation
 Short energy payback time Toxic/rare materials not required

Major medium/long term growth opportunity in thin film PV
Corp IR/April 27, 201247

Acquisition of Oerlikon Solar*
Contract date: March 2, 2012
Purchase cost: CHF250M (¥22.5B)
Planned closing of acquisition: June/July 2012
 Thin-film silicon technology, end-to-end solution
 Low-cost power generation technology
 Technology for large-scale power plant with high poweroutput
 Global top-class R&D capability
 Renewing world class record of conversion rate in thin film Si every year Technology base from Neuchatel University , Switzerland

Aiming at production cost under €0.35/Wp, power generation
cost under $0.08/kWh*Based in Trubbach, Switzerland, CHF323M in sales as of December 2011
*Tokyo Electron has acted as Oerlikon Solar’s Asia/Oceania sales representative since 2009
Corp IR/April 27, 2012

48

TEL Technology Center Tsukuba
 PV Business• Process development and evaluation in thin-film silicon PV technology• Introducing Oerlikon Solar equipment for use in R&D
 SPE Business:• R&D for new base technology and core technology

Operations started in April 2012
Location: Tsukuba City,Ibaraki Prefecture
Floor area: 13,234m2
Staff: approx.: 110 (1st year)

Expectedbenefits

 Organic cooperation with research institutes and universities
 Recruit top class engineers
49
Corp IR/April 27, 2012

Consolidated Financial Outlook(Billions of Yen)

Net Sales

Operating income

R&D expenses

Operating margin

1,00050%
906.0
851.9

800

40%
673.6

668.7

633.0
590.0

600

30%

508.0

16.9%

400

418.6

18.6%

11.2%
200

143.9
75.7
49.1

56.9

20%

14.6%
9.5%

168.4
66.0

2.9%

60.9
14.7

54.0

97.8
70.5

-0.5%

8.0%

81.5
60.4

10%

79.0
47.0

00%

FY06

FY07

FY08

FY09

-2.1

FY10

FY11

FY12

FY13(E)-200-10%

From FY11, maintain active investment for mid/long-term growth
50Corp IR/April 27, 2012

For Achieving Medium/Long-term Growth（Billions of Yen）

R&D Expenses

Future sales growth

10001003DI
RLSA
TestOLED
PV

800
8060060
新規分野
Newareas
Existing
既存分野areas400
40EC/CNEC/CN
New areas
新規分野
Existing areas
既存分野

20
20000
FY10

FY11

FY12

FY13（E）

FY13(今期E )FY15~16
3年後

FY17~5年後

Aiming for medium/long-term growth through active
investment in new areas
Corp IR/April 27, 201251

Disclaimer regarding forward-looking statement
Forecast of TEL’s performance and future prospects and other sort of information publishedare made based on information available at the time of publication. Actual performance andresults may differ significantly from the forecast described here due to changes in various
external and internal factors, including the economic situation, semiconductor/FPD/PV market
conditions, intensification of sales competition, safety and product quality management, andintellectual property-related risks.

Processing of numbers
For the amount listed, because fractions are rounded down, there may be the cases where thetotal for certain account titles does not correspond to the sum of the respective figures foraccount titles. Percentages are calculated using full amounts, before rounding.

Exchange Risk
In principle, export sales of Tokyo Electron’s mainstay semiconductor and FPD/PV cell
production equipment are denominated in yen. While some settlements are denominated indollars, exchange risk is hedged as forward exchange contracts are made individually at thetime of booking. Accordingly, the effect of exchange rates on profits is negligible.
FPD/PV: Flat panel display/Photovoltaic

52
Corp IR/April 27, 2012

53
Corp IR/April 27, 2012