CONTENTS
1 TEL Values

Innovative Spirit

Geared2 Consolidated Financial Highlights
4 Tokyo Electron at a Glance
6 To Our Stakeholders
9 Interview
Tetsuro Higashi, Chairman & CEO
13 Interview
Kiyoshi Sato, President & COO

Profile16 Environmental, Health and Safety Activities

supplier of semiconductor production equipment

18 Corporate Governance(SPE) and flat panel display (FPD) production

20 Board of Directors, Statutory Auditors andExecutive Officers

equipment. We provide a broad lineup of products

21 Intellectual Property Report

productivity and related services to semiconductor

Tokyo Electron Limited (TEL) is a world-leadingthat offer superior process performance and highand LCD panel manufacturers around the world.

Financial Section

An unwavering commitment to customer satisfaction

22 Management’s Discussion and Analysis

that dates back to our founding in 1963 has cemented

29 Consolidated Six-year Summary

our position as the market leader. Our competitive

30 Financial Statements

strength lies in our capability to proactively and precisely
identify real customer needs and respond to them with

44 Tokyo Electron Global Operations
45 Investor Information

cutting-edge technology and products.
With a global network that spans Japan, the U.S.,
Europe and Asia, we are opening up new frontiers for
digital networks by contributing to enhancing our customers’ production lines through untiring dedication totechnology innovation.

Disclaimer Regarding Forward-looking Statements
Matters discussed in this annual report, including forecasts offuture business performance of Tokyo Electron, management
strategies, beliefs and other statements are based on Tokyo
Electron’s assumptions in light of information that is currently
available. These forward-looking statements involve known orunknown risks, uncertainties and other factors that could cause
actual results to differ materially from those referred to in theforward-looking statements.
Factors that have a direct or indirect impact on Tokyo Electron’s
future performance include, but are not limited to:• Economic circumstances in Japan and overseas, consumption
trends, and large fluctuations in foreign exchange rates• Changes in semiconductor and FPD markets• Changes in the demand for products and services manufactured
or offered by Tokyo Electron’s customers, such as semiconductor manufacturers, FPD manufacturers and electronics makers• Tokyo Electron’s capabilities to continue to develop and provide
products and services that respond to rapid technology innovation and changing customer needs in a timely manner
For details, please refer to Business-related and Other Risks onpage 27.

for GrowthTEL Values
We have defined and built TEL’s values over the years,
and we will continue to refine and build on them in the future.

Pride
We take pride in providing high-value products and services.
• We offer our customers cutting-edge technological products, alongwith the highest level of quality and technical service, in the pursuitof total customer satisfaction.
• We consider profit to be an important measure of value in ourproducts and services.

Challenge
We accept the challenge of going beyond what others are doingin pursuing our goal of becoming number one globally.
• We view changes as opportunities, and respond to them flexibly
and positively.
• We are tolerant of failure, and consider it important to learn from theprocess and results.

Ownership
We will keep ownership in mind as we think things through,and engage in thorough implementation in order to achieve
our goals.
• We always have an awareness of problems, and tackle challenges
with enthusiasm and a sense of responsibility.
• We make decisions quickly, and do what we consider to be thebest course of action.

Teamwork
We respect each other’s individuality and we place a highpriority on teamwork.
• We create a workplace with an open atmosphere and positivecommunication.
• We establish relationships of trust with our business partners inorder to facilitate mutual growth.

Awareness
We must have awareness and accept responsibility for ourbehavior as respectful members of society.
• We strictly comply with laws and regulations and the rules of society.
• We give top priority to safety, health, and the global environment.
• We strive to become a company that local communities hold inhigh esteem.

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