Tokyo Electron

Annual Report 2012

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n To Our Stakeholders

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FeatureCorporate GovernanceCorporate Citizenship

R&D/Intellectual Property

Financial Section

Corporate Datan Interview with the CEO

To Our Stakeholders
In fiscal 2012, the year ended March 31, 2012, the economic environ-

Based on its medium- and long-term vision, Tokyo Electron has posi-ment surrounding Japan saw a year of increasingly severe and even cha-tioned the past 2 years as a period for laying the foundations of businessotic conditions. The environment was characterized by the effects of thegrowth for the next 5 to 10 years down the road. Accordingly, we havemassive floods in Thailand, the yen’s prolonged and historic appreciation,

made high levels of investment in growth. R&D expenses have been allo-

and the European financial market risk, in addition to the impact of thecated not only to strengthening our existing mainstay SPE business, but

Great East Japan Earthquake. In the electronics industry, where Tokyoalso to building new businesses that fully harness our core SPE technol-Electron operates, even the largest Japanese companies faced extremely

ogy. Examples include 3DI packaging, which has been spotlighted as ansevere conditions, as reported on a daily basis in the media.

advanced wafer level packaging technology; production equipment forIn this environment, Tokyo Electron finished fiscal 2012 with net sales of

OLED displays, which are emerging as the next-generation of flat panel¥633.1 billion, operating income of ¥60.4 billion and net income of ¥36.7

displays (FPD); and production equipment for thin-film silicon photovoltaicbillion, despite some impact due to tax code reforms and other factors.

cells, which we consider to be an optimal environmentally friendly energy

This performance was only possible with the support of our customers

technology for megasolar power generation. We will make every effort toand all other stakeholders. Accordingly, we wish to take this opportunity

nurture these new fields into future growth drivers that take Tokyo Elec-to express our heartfelt gratitude for your continued support.

tron to an even higher level in the near future.

Smartphones and tablets have come to the forefront at blinding

Tokyo Electron will mark the 50th year of its founding in November.

speed. Indeed, we are currently standing on the threshold of the mobile

The semiconductor industry is a unique and exceptional sector in which

device era. Dramatic growth in shipment volume of these types ofgrowth continues to be driven today by repeated cycles of technologicalmobile devices should continue going forward, fueled by an expanding

innovation even after more than half a century has passed since thebase of purchasers in emerging economies, along with further market

invention of the semiconductor. In this industry, as it remains a global

penetration in developed countries. These IT devices, which exchange

leader in semiconductor production equipment, Tokyo Electron aspires

immense amounts of data, will require even higher performing semicon-

not only to help achieve the betterment of people’s lives, but also toductors than before. This evolution in semiconductors will be made pos-make a contribution to the global environment through technology. To

sible by technological innovation in semiconductor production

realize this vision, we believe that it is crucial for management andTetsuro Higashi,

Hiroshi Takenaka,

equipment (SPE). Though the market for SPE is subject to the short-term

employees to come together and share this common mission, while

Chairman of the Board

President & CEO

impact of the silicon cycle and macro-economic factors, the market ismaking Tokyo Electron a company brimming with aspirations and vitality

tipped for sustained growth as it undergoes repeated cycles of techno-that we can all be more proud of. At the same time, we will continue tological innovation in support of the evolution of semiconductors andtake a diligent approach to management in order to make Tokyo Elec-tremendous volume-based expansion. In this dynamic market, Tokyo

tron an even more attractive, high-value company for all of our stake-

Electron will continue to fulfill its role of supporting the very foundations

holders. We look forward to your continued understanding and supportof the mobile device era by providing outstanding products and tech-as we endeavor to reach these goals.

nologies that our customers demand.

Tetsuro Higashi, Chairman of the Board

Hiroshi Takenaka, President & CEO