TOKYO ELECTRON

April 27, 2012

Consolidated Financial Review
for the Year Ended March 31, 2012
Company name:
URL:
Telephone number:
Stock exchange listing:Tokyo Electron Limited
http://www.tel.com(03) 5561-7000
Tokyo Stock Exchange 1st Section (Code 8035)

Notes: 1. The accompanying financial statements have been prepared in accordance with accounting
principles and practices generally accepted in Japan.
2. Amounts are rounded down to the nearest million yen.

1. Financial highlights for the year ended March 31, 2012
Year ended
March 31, 2011
March 31, 2012
Net sales (Millions of yen)
668,722
633,091
Operating income (Millions of yen)
97,87060,443
Ordinary income (Millions of yen)
101,91964,046
Net income (Millions of yen)
71,92436,725
Net income per share (Yen)
401.73205.04
Fully diluted net income per share (Yen)
401.10204.72Return on equity
13.3
6.3
Ordinary income to total assets
13.5
8.0
Operating income to net sales
14.6
9.5
Comprehensive income:Year ended March 31, 2012: 36,953 million yen
Year ended March 31, 2011: 69,598 million yen
Profit/loss on equity method:Year ended March 31, 2012: - million yen
Year ended March 31, 2011: - million yen(1) Operating results (Cumulative)(2) Financial position
As ofMarch 31, 2011
Total assets (Millions of yen)
Net assets (Millions of yen)
Equity ratio (%)
Net assets per sjare (Yen)
Equity: 586,789 million yen (as of March 31, 2012)
572,741 million yen (as of March 31, 2011)

809,205
584,801
70.8
3,198.66

As ofMarch 31, 2012
783,610598,60274.9
3,275.14(Millions of yen)

(3) Cash flow

Year ended
March 31, 2011
March 31, 2012
83,23829,712(35,881)(8,352)(5,236)(27,334)
165,050
158,776

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash flow from equivalents at end of period

1TOKYO ELECTRON
2. Dividends
Year ended
March 31, 2011

Year ended
March 31, 2012

38.00
76.00
114.00

53.00
27.00
80.00

Year ended
March 31, 2011

Year ended
March 31, 2012

20,41228.4
3.8

14,33139.0
2.5

1Q-end dividend per share (Yen)
2Q-end dividend per share (Yen)
3Q-end dividend per share (Yen)
Year-end dividend per share (Yen)Annual dividend per share (Yen)

Total dividend (Millions of yen)
Payout ratio (%)
Dividend on equity (%)

Year ending
March 31, 2013
(Forecast)
25.00
55.00
80.00
Year ending
March 31, 2013
(Forecast)
47.8-

The interim dividend for the second quarter ending September 2012 is made up of ordinary dividend 15 yen
and commemorative dividend 10 yen.
The year-end dividend for the year ending March 2013 is made up of ordinary dividend 45 yen and commemorative dividend 10 yen.

3. Earnings forecasts for the year ending March 31, 2013
Year ending
September 30, 2012
(Cumulative)

275,000
12,5007,400
41.30

Net sales (Millions of yen)
Operating income (Millions of yen)
Net income (Millions of yen)
Net income per share (Yen)

4. Others(1)

Important changes in subsidiaries. : None
(Changes on specific subsidiaries with changes in scope of consolidation)(2)

Changes in accounting principles, accounting estimation and restatement
1. Changes in accounting policies along with changes in accountins standards: Yes
2. Other changes of accounting policies besides number 1 above: None
3. Changes in accounting estimation: None
4. Restatement: None(3)

Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of March 31, 2012:

180,610,911 shares

As of March 31, 2011:

180,610,911 shares

2. Number of shares of treasury stock
As of March 31, 2012:

1,446,079 shares

As of March 31, 2011:

1,554,231 shares

3. Average number of shares outstanding
As of March 31, 2012:

179,112,754 shares

As of March 31, 2011:

179,035,910 shares

2Year ending
March 31, 2013

590,000
47,00030,000167.44

TOKYO ELECTRON(Reference) Non-consolidated financial review for the year ended March 31, 2012
1. Financial highlights for the year ended March 31, 2012
(1) Operating results
Note: Percentages indicate changes from the previous fiscal year.
Year ended
March 31, 2011

March 31, 2012%%
Net sales (Millions of yen)
569,29878.9
516,524(9.3)
Operating income (Millions of yen)
30,6207,131(76.7)
Ordinary income (Millions of yen)
40,97844,2868.1
Net income (Millions of yen)
31,92839,14422.6
Net income
The interim
per share
dividend(Yen) for the second quarter ending September
178.34 2012 is made up-of ordinary dividend
218.5515 yenFully diluted net income per share (Yen)
178.06218.20(2) Financial position
As ofMarch 31, 2011
629,215359,13556.8
1,997.34

Total assets (Millions of yen)
Net assets (Millions of yen)
Equity ratio (%)
Net assets per share (Yen)
Equity: 374,605 million yen (as of March 31, 2012)
357,636 million yen (as of March 31, 2011)

As ofMarch 31, 2012
599,411375,76162.5
2,090.84* Notes on the status of auditing procedure execution
This earnings report is outside the jurisdiction of auditing procedures outlined in the Financial Instruments andExchange Act and remain incomplete at the time of announcing this report.
* Explanation of the appropriate use of earnings forecast:
The performance forecasts and estimates stated in this Financial Review are based on certain assumptions
judged to be reasonable at the present time in light of currently available information. Consequently, actual
operating results may differ substantially from the projections in this Financial Review.
The company plans to hold a financial meeting for analysts and investors on Friday, April 27, 2012. The
supplementary materials to these financial reports that will be handed out at this meeting will be posted
simultaneously on our company website.

3

1.

Operating Results(1)

Analysis of Operating Results(i) Business Environment during the Fiscal Year Ended March 31, 2012
Economic conditions slowed overall during the fiscal year, especially in developed nations, due to future
uncertainty rooted in Europe’s financial instability. However, towards the end of the fiscal year, there weresigns of the beginning of a gradual recovery, mainly in the United States. In developing countries such as
China and India, growth slowed, but economic growth continued, led by internal demand. Japan’s economy
began its recovery from the Great East Japan Earthquake at an early stage, but the subsequent worldwide
economic recession and historically high yen slowed this recovery.
In the electronics industry, the primary area of the Tokyo Electron Group’s business activities, smartphones
and tablet PC reached high penetration levels, resulting in overall positive performance. However, sales of
PCs and televisions continued to be sluggish. Sales of semiconductors and LCD panels that are key
components in these products were not sufficient to cover capital investments.

(ii) Overview of Profits and Losses during the Fiscal Year Ended March 31, 2012
Under these circumstances, profits and losses for the fiscal year were as follows.
Consolidated net sales for the fiscal year decreased by 5.3% compared to the previous fiscal year, to633,091 million yen. Domestic net sales decreased by 5.9%, to 171,364 million yen, and overseas net sales
decreased 5.1%, to 461,727 million yen, with overseas net sales accounting for 72.9% of consolidated net
sales. Consolidated orders for the fiscal year decreased 26.4%, to 540,950 million yen, and consolidated
order backlogs fell 29.8%, to 216,669 million yen.
Cost of sales for the fiscal year dropped 2.8%, to 421,646 million yen, and gross profit decreased 9.9%, to211,444 million yen. As a result, gross profit margin decreased by 1.7 percentage points, to 33.4%.
Selling, general, and administrative (SG&A) expenses increased 10.3% to 151,001 million yen due in partto an increase of 10,938 million yen in R&D expenses, and the ratio to consolidated net sales increased by
3.4 percentage points to 23.9%.
As a result of these developments, operating income was down 38.2% to 60,443 million yen. Ordinary
income, adjusted for non-operating income of 4,097 million yen and non-operating expenses of 494 million
yen, was down 37.2% to 64,046 million yen.
With regards to unusual income and loss, unusual losses increased 47.2% to 3,444 million yen, due in partto posting 1,848 million yen in reserves for possible losses on loans in response to customer bankruptcy.
Income before income taxes for the fiscal year decreased 39.1% to 60,602 million yen, and net income
decreased 48.9% to 36,725 million yen, due in part to the impact of deferred income tax asset and liability
reversals (additional posting of tax expenses) of 3,587 million yen as a result of Japanese tax law changes.

4As a result, net income per share was 205.04 yen (401.73 yen for the previous fiscal year).

(iii) Overview of Operations during the Fiscal Year Ended March 31, 2012 by Business Segment

Semiconductor Production Equipment
Sales of logic semiconductors were robust on strong consumer demand for mobile information terminals.
However, DRAM manufacturers took production adjustment measures during the fiscal year due to slower
sales of PCs amid the economic downturn. Under these market conditions, manufacturers, primarilyfoundries and logic semiconductor manufacturers, invested in cutting-edge design shrinkage but memory
semiconductor manufacturers refrained from investments to increase production capacity. Net sales fromexternal customers for this segment during the fiscal year decreased by 6.5% compared to the previous
fiscal year, to 477,873 million yen.
TM

TM

In the fiscal year, the TEL Group launched new cleaning systems, “CELLESTA -i”, “EXPEDIUS -i”, and“NS300+ HT”, along with new tools for 3D integration packaging, “Tactras

TM

TM

FAVIAS”, “TELINDY PLUS

TM

VDP”, and “Synapse ” series.

FPD/PV (Flat Panel Display/Photovoltaic Cell) Production Equipment
In the global television market, consumers have nearly completed the switch from cathode-ray tube to LCD
televisions. With the additional slump in the PC market, LCD panel prices declined. A bright spot in themarket was demand for high-definition displays for mobile information terminals. Overall, for FPD
production equipment, the TEL Group’s sales were sluggish due to panel manufacturers’ growing supply
capacity. As a result of these developments, net sales from external customers in this segment during the
fiscal year were up 4.7% from the previous fiscal year to 69,888 million yen.

Electronic Components and Computer Networks
Sales of electronic components for semiconductor products and other products were sluggish, as a slump
in demand for components for televisions and other digital appliances outweighed increasing demand forsmartphone-related components. Increased companies’ demand for cloud computing and the broader
adoption of data centers propelled sales of products for information communications equipment as well as
maintenance services. As a result of these developments, net sales from external customers in thissegment during the fiscal year under review were down 5.9% from the previous fiscal year to 84,867 million
yen.

Other
Net sales from external customers for this segment during the fiscal year increased by 1.8% compared to5the previous fiscal year to 461 million yen.

(For reference）
Consolidated（ Millions of yen）
Year ended
March 31, 2011

Net Sales
Semiconductor Production Equipment
Japan
U.S.
EuropeKorea
TaiwanChina
S.E.Asia
FPD/PV Production Equipment
Electronic Components & Computer Networks
OthersOperating Income
Ordinary Income
Net Income

Year ended March 31, 2012
1Q

2Q

First
Half

3Q

668,722

153,117173,232

326,350

129,164

177,576

306,740

633,091

511,331
87,940102,898
28,48287,858150,282
25,59328,27566,721
90,216453
97,870101,919
71,924

120,836
20,94329,75613,99916,926
24,7059,115
5,390
12,536
19,64896
23,08823,751
16,636

127,557
29,421
23,823
16,988
20,957
19,458
6,685
10,222
24,141
21,388145
13,77015,97010,021

248,394
50,36553,57930,98837,88344,16315,80015,61336,67741,037
241
36,85939,722
26,65791,596
16,641
28,641
9,545
20,647
9,687
3,931
2,501
16,633
20,865
68
6,094
6,998
755

137,882
15,881
32,601
8,792
50,20921,166
5,663
3,568
16,57722,964151
17,48917,326
9,312

229,479
32,522
61,242
18,33770,85630,8549,594
6,070
33,211
43,830219
23,58424,324
10,067

477,873
82,887
114,82149,325
108,740
75,01825,395
21,68369,88884,867461
60,44364,04636,725

4Q

SecondHalf

Full Year

Note: Offset elimination has been carried out on the dealing between segments.

(iv) Projected Operating Results for the Next Fiscal Year Ending March 31, 2013
Regarding the future economic environment, gradual recovery is taking place after the international
economic slowdown. However, markets related to semiconductors such as memory have not yet fully
recovered. In this environment the TEL Group will keep an eye on the stages of future economic reboundwhile continuing to provide new products with great competitive power in a timely manner. We also intend towork to innovate technologies continuously and to improve our competitive power in terms of costs. The
financial forecast for the next fiscal year (the fiscal year ending March 31, 2013) is set forth below.

Consolidated Forecast(Billions of yen, Y/Y change)

Year ending March 31, 2013

Interim

Net Sales
Semiconductor Production Equipment
FPD/PV Production Equipment
Electronic Components & Computer Networks
OthersOperating Income
Net Income

275.0
223.0
9.0
43.0
0.0
12.5
7.4

Full Year
-15.7%-10.2%-75.5%
4.8%-66.1%-72.2%

590.0
474.0
20.0
96.0
0.0
47.0
30.0

-6.8%
-0.8%
-71.4%
13.1%-22.2%-18.3%

Note: Offset elimination has been carried out on the dealing between segments.

Note: The financial forecasts and estimates stated in this financial review are based on certain assumptions judged to bereasonable by the TEL Group 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 performance. The company does notpromise that the forecasts or estimates will be accurate.

6

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 stated in this financial review.

(2) Qualitative Information on Consolidated Financial Conditions(i) Financial Conditions
Current assets at the end of the fiscal year dropped 37,181 million yen from the end of the previous fiscal
year to 607,050 million yen. The major factors influencing this result were a 20,267 million yen decrease in
short-term investments included in securities, a 19,455 million yen decrease in inventories, a 17,157 million
yen decrease in cash and deposits, and a 13,920 million yen increase in trade notes and accounts
receivable.
Tangible fixed assets increased by 14,333 million yen from the end of the previous fiscal year, to 126,885
million yen.
Intangible fixed assets increased by 491 million yen from the end of the previous fiscal year, to 4,703 million
yen.
Investments and other assets decreased 3,237 million yen from the end of the previous fiscal year, to44,971 million yen.
As a result, total assets decreased by 25,594 million yen compared to the end of the previous fiscal year, to783,610 million yen.
Current liabilities were down 43,243 million yen compared to the end of the previous fiscal year, to 124,794
million yen. The major factors in the decrease were a 21,039 million yen decrease in categories such as
income taxes payable, a 6,625 million yen decrease in trade notes and accounts payable, and a 5,551
million yen decrease in customer advances.
Long-term liabilities were up 3,848 million yen compared to the end of the previous fiscal year, to 60,213
million yen.
Net assets were 598,602 million yen, as a result of a net income of 36,725 million yen reported for the fiscal
year combined with a decrease due to year-end dividends for the previous fiscal year of 13,608 million yen
and interim dividends for the current fiscal year of 9,493 million yen. The equity ratio was 74.9%.

(ii) Cash Flow
Cash and cash equivalents at the end of the fiscal year decreased by 6,274 million yen compared to theend of the previous fiscal year, to 158,776 million yen. The balance of cash and cash equivalents at the endof the fiscal year decreased by 37,425 million yen compared to the end of the previous fiscal year, to247,624 million yen. This includes 88,848 million yen in time deposits with deposit terms of over three7months, and short-term investments, which are not included in cash and cash equivalents.
Cash flows during the fiscal year under review were as follows.
Cash flow from operating activities during the fiscal year was 29,712 million yen, 53,526 million yen lower
than the previous fiscal year. Major positive factors included net income before income taxes of 60,602
million yen, depreciation and amortization of 24,197 million yen, and decrease in inventories of 16,022
million yen. The major negative factors were the payment of 47,628 million yen in income taxes and othertaxes, and an increase in trade notes and accounts receivable of 15,540 million yen.
Cash flow from investing activities was 8,352 million yen compared to the 35,881 million yen in the previous
year, primarily as a result of the 36,010 million yen in payment for purchase of tangible fixed assets and31,000 million yen in inflows from the decline in time deposits and short-term investments. Cash flow fromfinancing activities was 27,334 million yen, primarily as a result of the payment of 23,101 million yen in
dividends. Cash flow from financing activities in the previous fiscal year was 5,236 million yen.

Fiscal year ended
March 31, 2011

Fiscal year ended
March 31, 2012

70.8
101.5
0.1
1824.28

74.9
108.3
0.1
691.25Equity ratio (%)
Equity ratio at market value (%)
Interest-bearing debt to cash flow ratio (times)
Interest coverage ratio (times)
Equity ratio: (Equity / Total assets) x 100
Equity ratio at market value: (Market capitalization / Total assets) x 100

Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest expenses* All indicators are calculated using financial figures on a consolidated basis.
* Market capitalization is calculated based on the following formula: Closing stock price at fiscal year-end × Number of shares
outstanding at fiscal year-end after deduction of treasury stock.
* Cash flow from operating activities corresponds to the cash flow from operating activities in the consolidated statement of cash
flow. Interest-bearing debt includes all liabilities for which the Company is paying interest among the liabilities reported on the
consolidated balance sheet. Interest expenses correspond to the interest paid in the consolidated statement of cash flow.

(3) Basic Policy for Profit Allocation and Payment of Dividends for Current and Next Fiscal Years

The dividend policy of the Company is to link dividend payments to business performance and earnings on
an ongoing basis. Its basic policy for returning profits to shareholders is to maintain a payout ratio of around
35% based on consolidated net income.

8

TEL will effectively use internal capital reserves to raise corporate value through earnings growth andprovides returns directly to shareholders by concentrating investment in high-growth areas and linking
dividend payments to business performance and earnings.
In the current fiscal year (the fiscal year ended March 2012), a year-end dividend of 27 yen per share isplanned, pursuant to application of the above policy to consolidated financial results for the second half.
Including the interim dividend (53 yen per share), an annual dividend of 80 yen is planned.
Plans call for the ordinary dividend for the next fiscal year (the fiscal year ending March 31, 2013) to be 60
yen per share for the entire year (a 15 yen interim dividend and a 45 yen year-end dividend), in accordancewith the outlook for the year’s net income as stated above.
TEL will add a commemorative dividend of 20 yen (a 10 yen interim dividend and a 10 yen year-end
dividend) to celebrate the 50th anniversary of the TEL group and an expression of gratitude to shareholders
for their support. Therefore, the annual total dividend for the next fiscal year (the fiscal year ending March
31, 2013) will be 80 yen per share (a 25 yen interim dividend and a 55 yen year-end dividend).

Dividend per share
Current fiscal year
(ending March, 2012)

Next fiscal year
(ending March, 2013)

2Q-endYear-endTotal

53 yen27 yen80 yen25 yen55 yen80 yen(Ordinary dividend)
15 yen(Ordinary dividend)
45 yen(Ordinary dividend)
60 yen(Commemorative dividend)
10 yen(Commemorative dividend)
10 yen(Commemorative dividend)
20 yen2. Management Policy(1) Basic Management Policy
The basic management policy of the TEL Group is to raise its corporate value through profit-oriented
operations by placing the highest priority on customers, enhancing product and technology development
capabilities, and invigorating its workforce.
Under this basic fundamental policy, the TEL Group will engage in the development of vibrant andinternationally competitive companies with high growth potential and profitability that are attractive toinvestors.

(2) Management Tasks
The Group engages in dynamic business activities in the electronics industry, a field characterized by rapid
technological innovation, and is one of the world’s leading suppliers of semiconductor and flat panel display

9

(FPD) production equipment. In accordance with this status, its fundamental principles are as outlined
below.

- Provide high-value products and services in the world in order to realize healthy and high quality life
- Show much leadership as a world-wide leading company for constructing society of dreams andprogressing environmental problems- Share a sense of mission with all TEL employees, and a company of radiant existence, dreams, andvitality

To implement these fundamental principles, we have adopted the following concrete management policies.
- Be an innovative company that creates groundbreaking technologies- Seek to be a highly-competitive global leader- Offer solutions that best meet customer needs- Make global responses and contributions to environmental issues

In the markets in which we operate, the oligopolization of our customers (semiconductor manufacturers andothers) has continued, and so it is vital that we acquire and maintain our high position in terms of market
share etc. in the fields in which we are already operating. At the same time it is important that we continue
to develop new technology in new fields that can be commercialized quickly. With these issues in mind, we
have adopted the following key policies.

(i) Innovation through proactive research and development
In our 50th fiscal year, we will continue with proactive research and development in both existing and new
fields while selecting and focusing on particular areas to rationalize development costs. In our
semiconductor manufacturing equipment business, we will invest heavily in fields where growth is expected
such as in next-generation memory, 3D integration, and wafer-level packaging. In our FPD manufacturing
equipment business, we will concentrate on developing organic EL manufacturing equipment for theorganic EL currently attracting technology as the next-generation FDP. In our PV manufacturing equipment
business, we will accelerate the development of PV manufacturing equipment for thin-film solar cells withimproved generating efficiency in the interests of creating a market for thin-film silicon solar cells. In addition
to carrying out our own work, we will accelerate acquisition of necessary technologies through M&A activity.

(ii) Improving product strength to expand market share
To acquire and maintain a high market share in markets where we are already operating, further
improvements to the processing performance, productivity and reliability of our products are required. We
will work to increase market share, improving competitiveness of our products such as etching equipment,

10

cleaning equipment, coater/developer and wafer deposition equipment. In particular, we are aiming tosubstantially improve our share in the field of etching equipment, a market forecast to grow in future years,
by implementing an integrated system incorporating the stages from development through manufacture at
our Miyagi Plant which came online last year, by improving productivity with new production methods, andby starting mass production of RLSA plasma etching equipment containing new plasma etching technology.
Also, we will look to improve cost competitiveness by utilizing the construction of a factory in Kunshan,
China for FPD manufacturing equipment.

(iii) Always looking for the best solution
As the oligopolization of our customer base continues, we will look to strengthen our partnerships with ourcustomers through constructing a process development center in Korea, creating other evaluation
development facilities and partnership organizations and implementing a sales and service system. These
policies are allowing us to contribute to the technological development of our customers at an early stage
and thus quickly understand their needs so as to provide them with the best solution. In addition to themarketing and sale of cutting edge equipment, we are also working to expand our business, responding toshift to longer equipment lifecycles in our field solutions business. This covers areas such as the moving
and remodeling and improvement of sold equipment and the spare parts business.

(iv) Measures to address environmental issues
Based on the principle of “solving environmental problems with technology”, to promote moreenvironmentally friendly practices at customer factories, we are developing manufacturing equipment which
will lead to reduced emission of greenhouse gases, reduced power consumption and lower water usage.
Moreover, as a group, we will promote activities such as the introduction of photovoltaic power generationequipment in our main factories to reduce the environmental impact of our business practices and logistics.

In addition to the policies described above, for the human resources who will be the source of growth, we
think that the placement of the right people in the right positions and proactive development of training
programs to educate our human resources to equip them to respond to changes in the businessenvironment will help the Group to make rapid progress in the future. We will also continue to provide
evaluation and compensation which fairly recognize the extent of individual contributions, and seek tocreate a company that is brimming with dreams and vitality.

The Group will continue, on the basis of its profit-oriented management, to further enhance its corporate
value by means of placing the customers first, improving product and technology development capabilities,
strengthening international competitiveness, and motivating employees.

11

TOKYO ELECTRON

Consolidated Balance Sheet
As ofMarch 31, 2011

(Millions of yen)
As ofMarch 31, 2012ASSETS
Current assets
Cash and deposit

52,99235,834

Trade notes and accounts receivable

136,385

150,305

Securities

232,057

211,790

Merchandise and finished goods

111,918

101,789

Work in process

43,24635,104

Raw materials and supplies

13,76012,575

Deferred income taxes

27,60923,546

Others27,41437,480Allowance for doubtful accounts(1,153)(1,376)644,231607,050

121,597

143,461

Accumulated depreciation(75,363)(79,077)

Buildings and structures, net

46,23464,38475,73585,499

Accumulated depreciation(58,755)(63,835)

Machinery and carriers, net

16,98021,664

Land

25,772

26,260Construction in progress

19,509

9,514

Total current assets
Long-term assets
Tangible fixed assets
Buildings and structures

Machinery and carriers

Others
Accumulated depreciation
Others, net
Total tangible fixed assets

28,96330,334(24,909)(25,272)

4,054

5,061

112,551

126,885

Intangible fixed assets
Others

4,212

4,703

Total intangible fixed assets

4,212

4,703

Investment securities

15,72516,081

Deferred income taxes

20,727

17,585

Others13,78615,152

Allowance for doubtful accounts(2,031)(3,848)Investments and other assets

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

12

48,20944,971

164,973

176,560

809,205

783,610

TOKYO ELECTRON(Millions of yen)
As ofMarch 31, 2011

As ofMarch 31, 2012

LIABILITIESCurrent liabilities
Trade notes and accounts payable

53,612

46,986

Accrued employees' bonuses

11,1308,646

Accrued warranty expenses

7,594

8,903

Others

95,70060,257

Total current liabilities

168,038

124,794

Accrued pension and severance costs

52,23054,646

Others

4,134

5,567

Total long-term liabilities

56,36560,213

224,403

185,007

Common stock

54,961

54,961

Capital surplus

78,04578,023Retained earnings

457,658

471,186

Long-term liabilities

Total liabilities
NET ASSETS
Shareholders' equity

Treasury stock(10,484)(9,747)

Total shareholders' equity(580,180)

594,422

2,807

3,575

(12)

(51)

Translation adjustments(10,234)(11,157)

Total accumulated other comprehensive income

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(7,439)(7,633)

Subscription rights to shares

1,499

1,156

Minority interests

10,56010,656

Total net assets

584,801

598,602809,205

783,610

Total liabilities and net assets

13

TOKYO ELECTRON

Consolidated Statement of Income(Millions of yen)
Year ended
March 31, 2011

Year ended
March 31, 2012

Net sales

668,722

633,091

Cost of sales

433,963421,646

Gross profit

234,758

211,444

Salaries and allowances

19,93821,446

Research and development expenses

70,56881,506

Others46,381

48,048

Total selling, general & administrative expenses

136,887

151,001

97,87060,443

612

775

Revenue from development grants

3,026

1,130

Others

1,188

2,192

Total non-operating income

4,827

4,097

Loss on revaluation of investment securities

39

120

Maintenance and operation cost of closed business bases

185

111

Selling, general & administrative expenses

Operating income
Non-operating income
Interest income

Non-operating expenses

Others553

262

Total non-operating expenses

778

494

101,91964,04633

565

Ordinary income
Unusual or infrequent profit
Gain on sale of fixed assets
Gain on collection written-off claims-

Reversal of allowance for doubtful accounts
OthersTotal unusual or infrequent profit

1,437

1,891

-

209

171

2,134

2,174

1,113

935

Unusual or infrequent loss
Loss from earthquake damage
Provision of allowance for doubtful accounts

0

Loss from restructuring

1,848
-

Loss on revaluation of investment securities

34

848
696

Others

3,326

1,289

Total unusual or infrequent loss

4,475

5,619

Income before income taxes

99,57960,602

Provision for income taxes and enterprise taxes

29,482

15,022

Deferred income taxes(2,711)

8,400

Total income taxes

26,771

23,422

Income before minority interests

72,807

37,179883

453

71,92436,725

Minority interests
Net income

14

TOKYO ELECTRON

Consolidated Statement of Comprehensive Income(Millions of yen)
Year ended
March 31, 2011

Income before minority interests

Year ended
March 31, 2012

72,807

37,179Valuation difference on available-for-sale securities

303

768

Deferred gains or losses on hedges

71

(68)

(3,584)(925)

Other comprehensive income

Translation adjustments
Total other comprehensive income
Comprehensive income(3,209)(225)

69,59836,95368,73236,531866

422(Breakdown)Comprehensive income attributable to owners
Comprehensive income attributable to minority interests

15

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets(Millions of yen)
Year ended
March 31, 2011

Year ended
March 31, 2012

54,961
54,961

54,961
54,961

78,034
11
78,04578,045(22)
78,023393,970(8,236)71,924
457,658

457,658(23,101)
36,725(96)471,186(10,900)(37)
453(10,484)(10,484)(12)749(9,747)516,065(8,236)71,924(37)
464
580,180

580,180(23,101)
36,725(12)
630
594,422

Shareholders' equity
Common stock
Balance at beginning of period
Balance at end of period

Capital surplus
Balance at beginning of period
Disposal of treasury stock
Balance at end of period

Retained earnings
Balance at beginning of period
Cash dividends
Net income
Disposal of treasury stock
Balance at end of period

Treasury stock
Balance at beginning of period
Purchase of treasury stock
Disposal of treasury stock
Balance at end of period

Total shareholders' equity
Balance at beginning of period
Cash dividends
Net income
Purchase of treasury stock
Disposal of treasury stock
Balance at end of period

16

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets(Millions of yen)
Year ended
March 31, 2011

Year ended
March 31, 2012

2,504
303
2,807

2,807
768
3,575

Deferred gains or losses on hedges
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

(67)
55
(12)

(12)
(38)
(51)

Translation adjustments
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period(6,683)(3,550)(10,234)(10,234)(923)(11,157)

Total accumulated other comprehensive income
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period(4,247)(3,192)(7,439)(7,439)(194)(7,633)

1,578
(78)
1,499

1,499
(342)
1,156

9,973
587
10,56010,56096
10,656523,369(8,236)71,924(37)
464(2,683)584,801

584,801(23,101)
36,725
(12)
630
(440)
598,602

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

Subscription rights to shares
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

Minority interests
Balance at beginning of period
Net change except shareholders' equity
Balance at end of period

Total net assets
Balance at beginning of period
Cash dividends
Net income
Purchase of treasury stock
Disposal of treasury stock
Net change except shareholders' equity
Balance at end of period

17

TOKYO ELECTRON

Consolidated Cash Flow
Year ended
March 31, 2011

(Millions of yen)
Year ended
March 31, 2012

Cash flow from operating activities
Income before income taxes
Depreciation and amortization
Increase in accrued pension and severance costs (decrease)
Increase in allowance for doubtful accounts (decrease)
Increase in accrued employees' bonuses (decrease)
Increase in accrued warranty expenses (decrease)
Interest and dividend revenue
Decrease in trade notes and accounts receivable (increase)
Decrease in inventories (increase)
Increase in accounts payable (decrease)
Decrease in prepaid consumption tax (increase)
Increase in accrued consumption tax (decrease)
Increase in customer advances (decrease)
Decrease in specific doubtful receivables (increase)
OthersSubtotal
Receipts from interest and dividends
Interest paid
Income taxes paid or refund (paid)
Net cash generated by operating activities

99,57917,707
2,342(4,341)
5,086
2,352
(696)
(13,319)(36,532)
1,667(8,025)
2,304
9,575
5,302
7,119
90,121745(45)(7,583)
83,23860,602
24,1972,422
2,111(2,506)
1,343(1,009)(15,540)
16,022(5,807)1,507(2,417)(4,566)(1,889)1,935
76,405
978(42)(47,628)
29,712(90,000)
90,000(270,000)
270,000(33,541)509(925)(1,923)(35,881)(35,000)
55,000(249,500)
260,500(36,010)
1,102(2,140)(2,304)(8,352)

2,890
427(8,236)(318)(5,236)(3,593)(12)(23,101)(626)(27,334)(1,009)41,110123,939
165,050(299)(6,274)
165,050
158,776

Cash flow from investing activities
Payment into time deposits
Proceeds from time deposits
Payment for purchase of short-term investments
Proceeds from redemption of short-term investments
Payment for purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
Payment for purchase of intangible fixed assets
OthersNet cash used in investing activities

Cash flow from financing activities
Net increase in short-term borrowings (decrease)
Net decrease in treasury stock (increase)
Dividends paid
OthersNet cash generated by financing activities

Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents (decrease)
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

18

TOKYO ELECTRON

Segment Information(i) Overview of reportable segments
The reportable segments by the company provide separate financial information pertaining to thevarious segments of the company, which is reviewed periodically by the management to evaluate
corporate performance as well as make decisions about the allocation of management resources.
The corporate structure consists of product and service segments based on business units (BUs),
and the reportable segments are as follows: Semiconductor Production Equipment, FPD/PV (Flat
Panel Display and Photovoltaic Cell) Production Equipment, and Electronic Components andComputer Networks.
The Semiconductor Production Equipment segment consists of coaters/developers, plasma etchsystems, thermal processing systems, single wafer deposition systems, cleaning systems used inwafer processing, wafer probers used in the wafer testing process and other semiconductor
production equipment, and we are engaged in the development, manufacturing, sales and provision ofmaintenance services, etc. for such products.
The FPD/PV Production Equipment segment consists of coaters/developers, plasma etch/ash
systemsused in the manufacturing of flat panel displays, and plasma CVD systems used in the
manufacturing ofthin film silicon PV cells, and we are engaged in the development,
manufacturing, sales and provision of maintenance services, etc. for such products.
The Electronic Components and Computer Networks segment consists of semiconductor products
centering on integrated circuits (IC), other electronic components, computer networks and software,etc., and we are engaged in the design, development, procurement, and sales, etc. for such products.

(ii) Ways of estimating net sales and profits, or losses, assets, and other amounts by reportable segment.
Accounting method used in each reportable segment is almost the same as the method used toprepare consolidated financial statements. Inter-segment revenues or transfers are based onprevailing market prices. Moreover, shared assets have not been allotted to each reportablesegments, but associated costs have been distributed among them according to rational standards.

19

TOKYO ELECTRON

Segment Information(iii) Net sales and profits, or losses, assets, and other amounts by reportable segment
Year ended March 31, 2012

( Millions of yen)
Reportable Segment

Sales to external customers

Electronic
Components &Computer
Networks

FPD/PV
Production
Equipment

Semiconductor
Production
Equipment

Others*1

477,873

69,88884,867

461

-

-

1,432

14,564

Net sales

477,873

69,88886,30015,026

Segment income

89,019

2,271

2,311

1,827

Segment assets

262,788

21,294

46,391

1,927

Depreciation and amortization

11,282

686

569

170

Increase in the amount of tangible fixed
assets and intangible fixed assets

13,518

672

406

35

Inter-segment sales or transfers

Total Segment

Consolidated
Total
*3

Eliminations*2

Sales to external customers

633,091-

633,091

Inter-segment sales or transfers

15,997(15,997)-

Net sales

649,088(15,997)

633,091

Segment income

95,429(34,827)

60,602

Segment assets

332,401

451,208

783,610Depreciation

12,70911,48824,197

Increase in the amount of tangible fixed
assets and intangible fixed assets

14,632

28,572

43,205

Notes:*1
The "Others" segment includes all other businesses which are not included in the reported business segments, such as
the transportation of products, etc. of the Tokyo Electron Group companies, equipment leasing and insurance, etc.
*2 a) The eliminations of segment income amounting to 34,827 million yen includes corporate expenses pertaining to thecorporate account which are not allocated to any specific reportable segments. The corporate account expenses aremainly R&D expenses of 26,071 million yen, pertaining to fundamental research and element research conducted by
the company not related to any of the reportable segments.
b) The main constituents of the eliminations of segment assets worth 451,208 million yen are cash, savings, securities,buildings and structures, etc. unallocated to each reportable segment.
c) The main constituent of the eliminations of tangible fixed assets and intangible fixed assets worth 28,572 million yen iscapital investments in buildings and structures unallocated to each reportable segment.
*3

Segment income is adjusted against net income before taxes in consolidated income statement.

20