TOKYO ELECTRON LIMITEDANNUAL REPORT 06

CONSOLIDATED FINANCIAL HIGHLIGHTSFY1999FY1997■ Decline in semiconductor capital investment
due to an oversupply of DRAM.

FY1998■ Commenced preparation
for the 300mm era,completing the Process
Technology Center (nowLeading-edge Process
Development Center) inYamanashi Prefecture,
Japan, to support equipment development for300mm wafers.
■ Asian economic crisis
begins in second half offiscal year.

■ Semiconductor manufacturers slash
capital investment in response to theAsian economic crisis and another DRAM
supply glut.
■ Introduced corporate governancereforms that included reduction in thenumber of directors, establishment of aCompensation Committee, andseparation of duties of directors andexecutive officers.

FY2000■ Semiconductor supply-demandbalance improves as Asian
economies recover. Capital
investment in semiconductors
picks up steam.

1997

1998

1999

2000

For the Year:Net sales .............................................................
Operating income (loss) .......................................
Income (loss) before income taxes .......................
Net income (loss) .................................................
Depreciation and amortization .............................
Capital expenditures ............................................
R&D expenses .....................................................

¥432,785
60,38954,222
29,975
10,16718,456
20,988¥455,585
63,29656,06030,00912,65233,302
26,813¥313,820
6,383
6,038
1,866
17,921
23,47826,842¥440,729
35,816
29,68919,84819,44618,99937,135At Year-end:
Total assets .........................................................
Total shareholders' equity ....................................

¥387,077
207,476¥493,600
261,009¥414,903
257,716¥499,499
273,603

Per Share:
Net income (loss) — Basic ...................................
Cash dividends ....................................................

¥ 181.97
28.00¥ 174.68
30.00¥10.70
12.00¥ 113.53
14.00

Number of employees .........................................

6,277

7,287

7,835

8,946

Years ended March 31Notes: 1. U.S. dollar amounts are translated from yen, solely
for convenience, at the prevailing exchange rate
on 31st March, 2006, of ¥117.47=U.S.$1.
2. Per share amounts for fiscal 1997 were restatedto reflect a 1.1-for-1 stock split.
3. Effective from fiscal 2005, the Company made certain changes in accounting policies as discussed
in the notes to consolidated financial statements.

Net Sales(Millions of Yen)

1,000,000
750,000

635,710

673,686

529,654500,000

417,825

460,580

250,000
02002

22003

2004

2005

2006

TOKYO ELECTRON LIMITEDANNUAL REPORT 06

FY2005

FY2001■ Tokyo Electron selected for inclusion in theNikkei 225 index.
■ Market entered a period of brisk IT investment.
■ Expanded manufacturing capacity for
300mm equipment.
■ Acquired Timbre Technologies, Inc., a U.S.based firm with cutting-edge metrology
software technology.
■ Posted record net sales and net income.

FY2002■ IT bubble bursts triggering
rapid market deterioration.
■ Closures and consolidationsof manufacturing facilities.

■ Cash flow improves significantly as restructuring initiatives start to yield benefits.
■ Changed accounting policies as discussed in
the notes to consolidated financial statements.

FY2003■ Booked ¥20.6 billion in
restructuring-related expenses.
■ Established Tokyo Electron(Shanghai) Limited to start
direct operations in China.

FY2006■ Business expanded, lifted by active
investment in semiconductor memory
production facilities.
■ Revised dividend policy and reviewed
the directors’ remuneration system.
■ Established Tokyo Electron Korea
Solution Limited to strengthen postsales business in South Korea.

FY2004■ Established TEL Technology Center, America, LLC(TTCA) in the U.S. to conduct research and development of advanced semiconductor materials andprocesses (to participate in the Albany NanoTech
project, the R&D support program promoted by theNew York State Government).

Thousands ofU.S. dollars

Millions of yen

2001

2002

2003

2004

2005

2006

2006

¥723,880
121,086
99,13262,012
21,67949,403
52,911¥417,825(18,310)(22,919)(19,938)
26,29430,94653,827¥460,580
1,119(23,010)(41,554)
27,374
12,35950,123¥529,654
22,28014,936
8,297
24,963
11,00744,150¥635,710
63,98355,77561,601
21,4639,876
43,889¥673,686
75,70375,32848,006
19,17013,33549,182$5,734,965
644,446
641,256
408,663
163,191
113,517418,673¥729,511
333,281¥556,915
307,579¥524,901
252,904¥561,632
275,800¥644,320
332,165¥663,243
376,900$5,646,063
3,208,480

Yen

U.S. dollars¥ 353.76
38.00¥ (113.85)
8.00¥ (238.57)
8.00

10,236

10,171

10,053¥Net Income (Loss) per Share

46.37
10.00

¥ 343.63
45.00¥ 267.61
55.00

8,870

8,864

8,901

$

2.28
0.47

Total Shareholders’ Equity and ROE(Yen)(Millions of Yen)

400

(%)

500,000

343.6325

20.3
376,900

400,000

267.61300

20

307,579
252,904

300,000

275,800

332,165

15
13.5

200
200,000
46.37

100

10

100,000

5
3.1

0

0
–113.85–238.57

2002

2003

–300

0
–6.2

–14.8

–15

2004

2005

2006

2002

2003

■ Total shareholders' equity
ROE

32004

2005

2006