TOKYO ELECTRON

Summary of Consolidated Financial Results for the First Quarter Ended June 30, 2017
July 27, 2017
(Japanese GAAP)
Name of Listed Company:
Security Code:
URL:
Representative:
Contact:

Tokyo Electron Limited
Stock Exchange Listing: Tokyo8035
http://www.tel.com
Toshiki Kawai, Representative Director, President & CEO
Tetsuro Hori, Representative Director, CFO, Executive Vice President
Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly earnings release conference: Yes (for investors and analysts)
Note: Amounts are rounded down to the nearest million yen.
1.   Consolidated Financial Results for the Three Months Ended June 30, 2017 (April 1, 2017 to June 30, 2017)(1)  Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Three months ended
June 30, 2016

June 30, 2017%%

Net sales (Millions of yen)

147,976(5.0)

236,396

59.8

Operating income (Millions of yen)

22,095 (27.0)

54,790148.0

Ordinary income (Millions of yen)

24,083 (20.3)

55,149129.0

Net income attributable to owners of parent (Millions of yen)

12,684 (34.9)

41,252

225.2

77.33

251.4277.16

250.65

Net income per share of common stock (Yen):
Basic
DilutedComprehensive income:Three months ended June 30, 2017: 44,059 million yen, - %Three months ended June 30, 2016:

2,791 million yen, (87.1)%(2) Consolidated Financial Position
As ofMarch 31, 2017

June 30, 2017

Total assets (Millions of yen)

957,447

954,981

Total net assets (Millions of yen)

645,999

655,162

67.2

68.1

Equity ratio (%)
Equity:650,392 million yen (as of June 30, 2017)
643,094 million yen (as of March 31, 2017)2.   Dividends
Year ended

Year ending

March 31, 2017

March 31, 2018
(Forecast)

1Q-end dividends per share (Yen)--

2Q-end dividends per share (Yen)

128.00241.00--Year-end dividends per share (Yen)

224.00

256.00

Annual dividends per share (Yen)352.00497.003Q-end dividends per share (Yen)

Note: Revision to the dividends forecast most recently announced: None

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TOKYO ELECTRON

3.   Financial Forecasts for the Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)
Note: Percentages for year ending March 31, 2018 indicate changes from the previous fiscal year, and those for six months ending
September 30, 2017 indicate changes from the same period of the previous fiscal year.
Six months ending

Year ending

September 30, 2017

March 31, 2018

(Cumulative)%%

Net sales (Millions of yen)

480,000

36.1

980,000

22.5

Operating income (Millions of yen)

104,000

73.3

216,000

38.7

Ordinary income (Millions of yen)

104,000

66.8

216,000

37.1

Net income attributable to owners of parent (Millions of yen)

79,00088.2

163,000

41.5

Net income per share (Yen)

481.48993.43

Note: Revision to the financial forecasts most recently announced: None

Notes
(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): None

(2) Adoption of special accounting methods for preparation of quarterly financial statements: Yes
Please refer to "Notes" on page 11 for further information.

(3) Changes in accounting policies, changes in accounting estimates and restatements
1. Changes in accounting policies along with changes in accounting standards: None
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None

(4) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of June 30, 2017 :

165,210,911 shares

As of March 31, 2017:

165,210,911 shares

2. Number of shares of treasury stock
As of June 30, 2017 :

1,132,687 shares

As of March 31, 2017:

1,135,104 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Three months ended June 30, 2017:

164,076,929 shares

Three months ended June 30, 2016:

164,038,149 shares* Status of implementation of quarterly review proceduresThis Summary of Consolidated Financial Results is outside the scope of the quarterly review procedures under the Financial
Instruments and Exchange Act.

* Explanation of the appropriate use of financial forecast:
The financial forecasts and estimates in this Summary of Consolidated Financial Results are based on information available to
the Company at the time of report issuance and certain assumptions judged to be reasonable by the Company, and therefore
are not guarantees of future performance. Consequently, actual results may differ substantially from those described in thisSummary of Consolidated Financial Results. Please refer to "1. Qualitative Information on Financial Results for the Current
Quarter (3) Description of Financial Estimates Information such as Consolidated Financial Forecasts" on page 6.
The Company plans to hold an earnings release conference for investors and analysts on July 27, 2017. Supplementary materials
to be handed out at the conference will be posted simultaneously on the Company's website.

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TOKYO ELECTRON

1. Qualitative Information on Financial Results for the Current Quarter(1) Description of Operating Results
In the first quarter of the current fiscal year, the global economy continued a moderate recovery, with a sustained
economic upturn in the U.S.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, demand for semiconductors andelectronic components remained strong as demand for data center servers continued to grow, reflecting increases indata transmission volumes. Under these circumstances, the consolidated financial results (cumulative) for the firstquarter of the current fiscal year were net sales of 236,396 million yen (year-on-year growth of 59.8%), operating
income of 54,790 million yen (year-on-year growth of 148.0%), ordinary income of 55,149 million yen (year-on-year
growth of 129.0%) and net income attributable to owners of parent of 41,252 million yen (year-on-year growth of
225.2%).

The overview of each business segment is as described below.

(i) Semiconductor Production Equipment
In the semiconductor production equipment market, a robust server market continues to drive NAND flash memory,
DRAM, and logic demand. The market transition away from hard disk drives to SSD (solid state drives) also
contributed to increased investment in three-dimensional NAND flash memory. As a result, net sales to externalcustomers in this segment for the first quarter of the current fiscal year were 221,969 million yen (year-on-year growthof 69.7%).

(ii) Flat Panel Display (FPD) Production Equipment
As the utilization of OLED panels for smartphones has continued to advance, investment in facilities for small to
medium-sized panels continues to expand. In addition, there has been on-going investment in facilities for large-sized
LCD panels in China. As a result, the FPD production equipment market remained robust. Accordingly, net sales toexternal customers in this segment for the first quarter of the current fiscal year were 14,323 million yen (year-on-year
decrease of 16.1%).

(iii) Other
Net sales to external customers in this segment for the first quarter of the current fiscal year were 104 million yen(year-on-year decrease of 9.7 %).

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TOKYO ELECTRON(For reference)
Consolidated Operating Results(Millions of yen)
FY 2017
Full YearNet Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia
FPD Production Equipment
Other
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent

Note:799,719
749,893
91,203
101,559
59,929137,788
225,91090,66942,832
49,387438
155,697
157,549
115,208

1Q

2Q

3Q

4Q

147,976
130,796
17,81917,022
5,234
19,80530,50430,04910,36017,064115
22,09524,083
12,684

204,745
196,211
26,42934,416
6,695
29,03158,28924,04417,3048,414
119
37,91638,281
29,281

186,364
179,373
20,32924,634
15,06133,37662,36013,798
9,812
6,887
103
34,14733,32725,951

260,632
243,511
26,62525,48532,93755,57574,755
22,777
5,355
17,020100
61,53661,85747,290FY 2018
1Q
236,396
221,969
26,77624,09725,382
68,37545,89726,757
4,683
14,323104
54,79055,14941,252

Intersegment sales or transfers are eliminated.

Production and Order Performance
Production results are excluded as sales is a proxy for production activities and adjustments are made in response tochanges in market conditions. Sales results are presented in the overview by business segment in “1. Qualitative
information on Financial Results for the Current Quarter (1) Description of Operating Results”.
In addition, order results (orders received and orders backlog) are not presented as quarterly orders may fluctuatesignificantly based on the customer’s investment trend and are not necessarily an appropriate predictor of annual
operating results and trends.

(2) Description of Financial Conditions(i) Financial Conditions
Current assets at the end of the first quarter of the current fiscal year were 766,278 million yen, down 9,660 million
yen compared to the end of the previous fiscal year. This was primarily due to an increase of 30,398 million yen in
inventories, an increase of 5,892 million yen in trade notes and accounts receivable, a 28,818 million yen decrease inprepaid consumption tax, and a 25,500 million yen decrease in short-term investments included in securities.
Tangible fixed assets increased by 3,786 million yen from the end of the previous fiscal year, to 104,227 million yen.
Intangible fixed assets increased by 801 million yen from the end of the previous fiscal year, to 16,202 million yen.
Investments and other assets increased by 2,607 million yen from the end of the previous fiscal year, to 68,273
million yen.
As a result of the foregoing, total assets decreased by 2,465 million yen from the end of the previous fiscal year, to954,981 million yen.
Current liabilities decreased by 11,923 million yen when compared to the end of the previous fiscal year, to 235,846
million yen. This was primarily due to a 12,960 million yen decrease in income taxes payable, a 10,361 million yen
decrease in accrued employees’ bonuses, and a 7,363 million yen increase in customer advances.

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TOKYO ELECTRON

Long-term liabilities increased by 294 million yen when compared to the end of the previous fiscal year, to 63,972
million yen.
Net assets increased by 9,163 million yen compared to the end of the previous fiscal year, to 655,162 million yen.
Contributing factors were an increase of 41,252 million yen in net income attributable to owners of parent and adecrease resulting from the payment of 36,752 million yen in year-end dividends for the previous fiscal year. As aresult, the equity ratio was 68.1%.

(ii) Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year, when compared to the prior quarter,
increased by 4,301 million yen to 168,668 million yen. The combined balance of 294,668 million yen includes
126,000 million yen in time deposits and short-term investments with periods to maturity or redemption of at least
three months that are not included in cash and cash equivalents, a decrease of 20,698 million yen from the end of theprevious fiscal year. The overall status of cash flows during the first quarter of the current fiscal year was as described
below.
Cash flows from operating activities increased 2,269 million yen to positive 24,463 million yen compared to the same
period of the previous fiscal year. The major positive factors were 55,147 million yen in net income before income
taxes, 4,243 million yen in depreciation and amortization, a decrease of 28,812 million yen in prepaid consumption
tax, and an increase of 6,748 million yen in customer advances. The major negative factors were an increase of
28,814 million yen in inventories, the payment of income taxes of 26,280 million yen, a decrease of 10,357 million yen
in accrued employees’ bonuses, and an increase of 5,719 million yen in trade notes and accounts receivable.
Cash flows from investing activities were positive 15,692 million yen compared to positive 20,063 million yen in thesame period of the previous fiscal year. The primary factors were 25,000 million yen in income associated with adecrease in time deposits and short-term investments, and the payment of 7,557 million yen for the acquisition of
tangible fixed assets.
Cash flows from financing activities were negative 36,800 million yen, compared to negative 18,375 million yen in thesame period of the previous fiscal year. These were primarily attributable to the payment of 36,752 million yen in
dividends.

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TOKYO ELECTRON

Consolidated Statements of Cash Flows (Summary)Three month ended
June 30, 2016

(Millions of yen)Three month ended
June 30, 2017

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable
Other, net
Cash flows from investing activities
Decrease (increase) in time deposits and short-term investments
Other (Acquisition of fixed assets)
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents

22,193
16,191
3,994
10,636(12,488)(1,452)
5,313
20,06324,998(4,934)(18,375)(4,609)24,46355,147
4,243(5,719)(28,814)(95)(298)
15,69225,000(9,307)(36,800)
946

Net increase (decrease) in cash and cash equivalents

19,271

4,301

Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period

95,638114,910

164,366
168,668

Cash and cash equivalents, time deposits and short-term investments with periods tomaturity or redemption of at least three months

230,943294,668(3) Description of Financial Estimates Information such as Consolidated Financial Forecasts
There are no changes in the consolidated financial forecast for the fiscal year ending March 31, 2018 from theforecasts released at the time of the previous announcement on April 28, 2017.

Note: The financial forecasts and estimates in this Summary of Consolidated Financial Results are based on certain assumptions judged tobe reasonable by the Company 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 future performance. The company does not promise that theforecasts or estimates will be accurate.
They are therefore susceptible to the impact of many uncertainties, including market conditions, competition, the launching of 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 described in this Summary of Consolidated Financial Results.

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TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2017

June 30, 2017

ASSETS
Current assets
Cash and deposit

70,86675,668Trade notes and accounts receivable

133,858

139,750

Securities

244,500

219,000

Merchandise and finished goods

152,629

175,042Work in process

51,11256,596

Raw materials and supplies

32,51435,016

Others90,52065,273(63)(69)

775,938

766,278

100,441

104,227

Others15,401

16,202

Total intangible fixed assets

15,401

16,202Others

67,48270,098

Allowance for doubtful accounts(1,816)(1,824)

Allowance for doubtful accounts
Total current assets
Long-term assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets

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

765,666

68,273

181,508

188,703

957,447

954,981

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2017

June 30, 2017

LIABILITIESCurrent liabilities
Trade notes and accounts payable

79,21779,939

Income taxes payable

31,06918,109Accrued employees’ bonuses

21,853

11,492Other allowances

10,4709,795

Others105,159

116,510

Total current liabilities

247,770

235,846374

374

Long-term liabilities
Other allowances
Net liability for defined benefits

55,82555,913

Others

7,476

7,684

Total long-term liabilities

63,677

63,972

311,447

299,818

54,961

54,961

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,02378,023Retained earnings

503,325

507,816

Treasury stock, at cost

(7,766)(7,751)

Total shareholders' equity

628,543

633,048

10,788

12,692

59

6

Accumulated other comprehensive income
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments
Foreign currency translation adjustments

5,789

6,911

Accumulated remeasurements of defined benefit plans(2,086)(2,267)

Total accumulated other comprehensive income (loss)

14,551

17,343

Share subscription rights

2,620

4,516

Non-controlling interests

284

254

645,999

655,162

957,447

954,981

Total net assets
Total liabilities and net assets

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TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)Three months ended

Three months ended

June 30, 2016

June 30, 2017

Net sales

147,976

236,396

Cost of sales

90,650139,244

Gross profit

57,325

97,152

Research and development expenses

17,767

21,187

Others17,461

21,173

Total selling, general and administrative expenses

35,22942,36122,09554,790106

173

Selling, general & administrative expenses

Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gain
OthersTotal non-operating income

278

282

1,302

-

361

343

2,048

800

-

412

Non-operating expenses
Foreign exchange loss
Others61

29

Total non-operating expenses

61

441

24,08355,149Gain on sales of fixed assets

23

46

Gain on sales of investment securities

6-

Total unusual or infrequent profit

29

46

41

47

7,828

-

Ordinary income
Unusual or infrequent profit

Unusual or infrequent loss
Loss on disposal of fixed assets
Loss on disaster
OthersTotal unusual or infrequent loss
Income before income taxes

52

0

7,921

47

16,191

55,147

Income taxes

3,492

13,880Net income

12,69841,26713

14

12,684

41,252

Net income attributable to non-controlling interests
Net income attributable to owners of parent

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TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Three months ended

Three months ended

June 30, 2016

June 30, 2017

12,69841,267(2,673)

1,908

Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments

31

(23)

Foreign currency translation adjustments(7,447)1,123

Remeasurements of defined benefit plans

181

(183)

0

(33)

Share of other comprehensive income of associates
accounted for using the equity method
Total other comprehensive income (loss)
Comprehensive income(9,906)

2,791

2,791

44,0592,798

44,045(7)

13(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

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TOKYO ELECTRON

Notes
Going concern: None
Significant changes in Shareholders' Equity: None
Changes in significant subsidiaries during the period: None
Adoption of special accounting methods for preparation of quarterly financial statements: Yes
The company and a part of its consolidated subsidiaries calculate tax expenses by reasonably estimating the annual effective tax rate on
income before income taxes after the application of tax effect accounting for the fiscal year, and applying this rate to income before income
taxes for the current quarter under review.
Changes in accounting policies, changes in accounting estimates and restatements: None
Segment information(i) General information about reportable segments
A reportable segment is a component or an aggregated component of TEL Group. For each of the components, discrete financial
information is available and the operating result is regularly reviewed by management to make decisions about resources to beallocated to the segment and assess its performance.
The operation of TEL Group consists of segments by products and services based on business units (BUs), and TEL Groupidentifies as a reportable segment, "semiconductor production equipment (SPE)" and "flat panel display (FPD) production equipment".
Products of the SPE segment consist of coater/developers, etch systems, thermal processing systems, single wafer deposition systems,
cleaning systems, wafer probers used in the wafer testing process and other semiconductor production equipment. The SPE segmentprincipally develops, manufactures, sells such products and provide services on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture offlat panel displays. The FPD production equipment segment principally develops, manufactures, sells such products and provide serviceson them.
(ii) Net sales and profit or loss in reportable segments
Three months ended June 30, 2017 (April 1, 2017 to June 30, 2017)(Millions of yen)

Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

Others *1

Total

Net sales

221,969

14,323

4,237

240,530

Segment profit (loss)

66,170459(67)

66,563Eliminations andCorporate *2

Consolidated *3

Net sales(4,133)

236,396

Segment profit (loss)(11,415)

55,147

Notes:*1. "Others" includes all other operating segments which are not included in the reportable segments, including group-wide logistic
services, facility maintenance and insurance.

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TOKYO ELECTRON*2. "Eliminations and Corporate" segment loss totaling 11,415 million yen includes corporate expenses not allocated to any
reportable segments. The corporate expenses consist of research and development costs of 4,988 million yen, pertaining to
the fundamental research and element research of TEL.
*3. Segment profit or loss is adjusted against income before income taxes in Consolidated Statements of Income.

(iii) Impairment losses on fixed assets and goodwill, etc. in reportable segments
Significant impairment losses related to fixed assets: None
Significant changes in goodwill amount: None
Significant gains on negative goodwill: None12