TOKYO ELECTRON

Summary of Consolidated Financial Results for the Second Quarter Ended
September 30, 2021 (Japanese GAAP)
Name of Listed Company:
Security Code:
URL:
Representative:
Contact:

Tokyo Electron Limited
8035
https://www.tel.com
Toshiki Kawai, Representative Director, President & CEO
Akifumi Matsumura, Vice President of Accounting Dept.

November 12, 2021

Stock Exchange Listing: Tokyo

Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: December 9, 2021
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 Six Months Ended September 30, 2021 (April 1, 2021 to September 30, 2021)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Six months ended
September 30, 2020

September 30, 2021%%

Net sales (Millions of yen)

668,160

31.4

932,514

39.6

Operating income (Millions of yen)

147,42943.9

274,647

86.3

Ordinary income (Millions of yen)

148,22838.9

277,762

87.4

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

112,01242.3

200,21978.7

Net income per share of common stock (Yen):
Basic
DilutedComprehensive income:

720.291,286.74

716.05

1,279.96

Six months ended September 30, 2021:

224,552 million yen, 81.5%

Six months ended September 30, 2020:

123,750 million yen, 62.3%

Note: From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue
Note: Recognition” (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended September 30, 2021 includes
Note: the effects of the new standards. Percentages of changes are based on consolidated financial results without theNote: effects of the new standards of the same period of the previous fiscal year.
(2) Consolidated Financial Position
As ofMarch 31, 2021

September 30, 2021

Total assets (Millions of yen)

1,425,364

1,634,037

Total net assets (Millions of yen)

1,024,562

1,185,882

71.1

71.8

Equity ratio (%)
Equity:1,173,289 million yen (as of September 30, 2021)
1,012,977 million yen (as of March 31, 2021)

Note: From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue
Note: Recognition” (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended September 30, 2021 includes
Note: the effects of the new standards.
2. Dividends
Year ending

Year ended
March 31, 2021

March 31, 2022

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

2Q-end dividends per share (Yen)

360.00643.00--Year-end dividends per share (Yen)

421.00641.00 (Forecast)

Annual dividends per share (Yen)

781.001,284.00 (Forecast)

3Q-end dividends per share (Yen)

Note: Revision to the dividends forecast most recently announced: Yes
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TOKYO ELECTRON

3. Financial Forecasts for the Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)
Note: Percentages for year ending March 31, 2022 indicate changes from the previous fiscal year.
Year ending
March 31, 2022%
Net sales (Millions of yen)

1,900,000

35.8

Operating income (Millions of yen)

551,000

71.8

Ordinary income (Millions of yen)

551,000

71.1

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

400,000

64.6

Net income per share (Yen)2,569.88

Note: Revision to the financial forecasts most recently announced: Yes
From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31, 2020). Financial forecasts above include the effects of the new standards. Percentages ofchanges are based on consolidated financial results without the effects of the new standards of the same period of the previous
fiscal year.
Notes(1)䚷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 12 for further information.
(3)䚷Changes in accounting policies, changes in accounting estimates and restatements
1. Changes in accounting policies along with changes in accounting standards: Yes
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None
Please refer to "Notes" on page 12 for further information.
(4) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of September 30, 2021:

157,210,911 shares

As of March 31, 2021:

157,210,911 shares

2. Number of shares of treasury stock
As of September 30, 2021:

1,515,144 shares

As of March 31, 2021:

1,659,611 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Six months ended September 30, 2021:

155,602,587 shares

Six months ended September 30, 2020:

155,511,326 shares

Note: The number of shares of treasury stock includes the Company’s shares held by "Executive compensation Board Incentive Plan (BIP) trust"and "share-delivering Employee Stock Ownership Plan (ESOP) trust". (612,808 shares as of September 30, 2021, 615,237 shares as of March 31, 2021)
In addition, these Company’s shares are included in the treasury stock which is deducted in calculating the average number of shares.

* Status of implementation of quarterly review proceduresThis Summary of Consolidated Financial Results is outside the scope of external auditor's 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 (4) Description of Financial Estimates Information such as Consolidated Financial Forecasts" on page 5.
The Company plans to hold an online conference for investors and analysts on November 12, 2021.
Supplementary materials to be used at the conference will be posted on the Company's website.

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TOKYO ELECTRON

1. Qualitative Information on Financial Results for the Current Quarter
From the beginning of the first quarter of this fiscal year, the company applies “Accounting Standard for Revenue
Recognition” (ASBJ Statement No. 29, March 31, 2020). Comparisons between the same period in the previous year
in the explanation of operating results and cash flows and comparisons between the end of the previous fiscal year in 
the explanation of financial positions are made using figures from the consolidated results of the previous fiscal year
prior to the application of the change in accounting standards.
For details, please refer to “Notes” on page 12 for further information.

(1) Description of Operating Results
Despite the effect of the COVID-19 pandemic, the global economy for the first half of the current fiscal year, trended
towards recovery with the resumption of economic activity in various nations. In the electronics industry, where theTokyo Electron (TEL) Group operates, the expansion of the semiconductor production equipment market isaccelerating as demand for semiconductors increases, driven by the transition to a data society and moves towardrealizing a decarbonized society due to the expanded use of communications technologies such as IoT, AI and 5G.
Further growth is expected in the semiconductor production equipment market in the future as well, driven by “digitalx green” which is becoming a major global trend.
Under these circumstances, the consolidated financial results (cumulative) for the first half of the current fiscal year
were net sales of 932,514 million yen (year-on-year growth of 39.6%), operating income of 274,647 million yen (yearon-year growth of 86.3%), ordinary income of 277,762 million yen (year-on-year growth of 87.4%), and net income
attributable to owners of parent of 200,219 million yen (year-on-year growth of 78.7%).

The overview of each business segment is as described below.

(i) Semiconductor Production Equipment
Capital investment in semiconductors for logic/foundry has been robust in a wide range of areas, from cutting-edge tomature generations of semiconductors, thanks to an increase in global demand for semiconductor devices of all types
and applications, including a significant increase in investments in advanced logic. Additionally, capital investment in
DRAM and NAND flash memory was also at a higher level than in the same period last year. Consequently, net
sales to external customers in this segment for the first half of the current fiscal year were 905,763 million yen (yearon-year growth of 42.5%).

(ii) Flat Panel Display (FPD) Production Equipment
As capital investment for large-sized LCD panels for televisions has run its course, the overall manufacturing
equipment market for FPD TFT arrays has slowed. Meanwhile, capital investments in small and medium-sized OLED
panels continue in conjunction with displays installed in end products being converted from LCD panels to OLED
panels. Consequently, net sales to external customers in this segment for the first half of the current fiscal year were
26,682 million yen (year-on-year decrease of 18.2%).

(iii) Other
Net sales to external customers in this segment for the first half of the current fiscal year were 68 million yen (yearon-year growth of 2.3%).

3

TOKYO ELECTRON䠅(For reference䠅Consolidated Operating Results

䠄Millions of yen䠅
FY2021
1H

Net Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia, and Others
FPD Production Equipment
OthersOperating Income
Ordinary Income
Net Income Attributable to Owners of Parent

668,160
635,457
106,00286,35232,086139,213
104,840
153,081
13,88032,636
66
147,429
148,228
112,012

FY2021
2H
730,942
679,743
89,81965,704
31,416
140,725
140,796
172,763
38,516
51,135
63
173,256
173,875
130,928

FY2022
1H
932,514905,763
108,827
105,808
33,721
188,812
165,401
262,50940,683
26,682
68
274,647
277,762
200,219

1Q

2Q

452,049
437,924
54,861
43,911
13,411
95,30462,853
153,684
13,897
14,09035
141,791
142,630
100,363

480,464
467,838
53,96561,897
20,30993,507
102,548
108,825
26,785
12,592
32
132,855
135,13199,856

Note: Intersegment sales or transfers are eliminated.

(2) Description of Financial Conditions
Current assets at the end of the second quarter of the current fiscal year were 1,183,467 million yen, an increase of
167,771 million yen compared to the end of the previous fiscal year. This was mainly due to an increase of 109,615
million yen in notes and accounts receivable - trade, and contract assets, an increase of 93,901 million yen in cash
and deposits, a decrease of 31,266 million yen in prepaid consumption tax, and a decrease of 21,200 million yen in
inventories.
Tangible fixed assets increased by 9,027 million yen from the end of the previous fiscal year, to 205,995 million yen.
Intangible fixed assets increased by 2,625 million yen from the end of the previous fiscal year, to 19,788 million yen.
Investments and other assets increased by 29,250 million yen from the end of the previous fiscal year, to 224,786
million yen.
As a result, total assets increased by 208,673 million yen from the end of the previous fiscal year, to 1,634,037 million
yen.
Current liabilities increased by 42,922 million yen from the end of the previous fiscal year, to 370,583 million yen. This
was largely due to an increase of 23,067 million yen in income taxes payable, and an increase of 10,519 million yen
in customer advances.
Long-term liabilities increased by 4,431 million yen from the end of the previous fiscal year, to 77,571 million yen.
Net assets increased by 161,319 million yen from the end of the previous fiscal year, to 1,185,882 million yen. This
was largely due to an increase of 200,219 million yen in net income attributable to owners of parent, a decrease
resulting from the payment of 65,746 million yen in year-end dividends for the previous fiscal year, and an increase of
22,644 million yen in net unrealized gains on investment securities. As a result, the equity ratio was 71.8%.

(3) Description of Cash Flows
Cash and cash equivalents at the end of the second quarter of the current fiscal year increased by 114,370 million
yen compared to the end of the previous fiscal year, to 380,364 million yen. The combined balance including 40,075
million yen in time deposits and short-term investments with maturities of more than three months that are not included
in cash and cash equivalents was 420,439 million yen, an increase of 108,886 million yen from the end of the previous
fiscal year. The overall situation regarding cash flows during the first half of the current fiscal year was as described
below.

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TOKYO ELECTRON

Cash flows from operating activities were positive 205,914 million yen, an increase of 99,987 million yen compared tothe same period of the previous fiscal year. The major positive factors were 273,050 million yen in income before
income taxes, a 31,247 million yen decrease in prepaid consumption tax, and a 22,871 million yen increase incustomer advances. The major negative factors were a 71,745 million yen increase in notes and accounts receivable- trade, and contract assets, and a 49,738 million yen in payment of income taxes.
Cash flows from investing activities were negative 25,785 million yen compared to positive 7,391 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 25,645 million yen for the purchase of
fixed assets.
Cash flows from financing activities were a negative 66,190 million yen compared to negative 57,989 million yen in
the same period of the previous fiscal year. This was largely due to the payment of 65,746 million yen in dividends.

(4) Description of Financial Estimates Information such as Consolidated Financial Forecasts
Net sales for the first half of the current fiscal year of our main-product semiconductor production equipment haveexceeded previous projections due to factors such as the acceleration of customer demand and an increase inreceived orders, and, in terms of profit, operating income, ordinary income, and net income attributable to owners ofparent, each ultimately exceeded projections.
Furthermore, based on the most recent trends in facilities investments by our customers and the most recent trends
in results, we would like to amend the consolidated results projections for the full year announced on August 16, 2021
as follows.

Consolidated Operating Results (Cumulative) for the First Half of the Year Ending March 31, 2022
Results for FY2022 1H
Net Sales
932.5
39.6%
Semiconductor Production Equipment
905.7
42.5%
FPD Production Equipment
26.6(18.2)%
Operating Income
274.6
86.3%
Ordinary Income
277.7
87.4%
Net Income Attributable to Owners of Parent
200.2
78.7%
Notes:*1. Percentages indicate changes from the same period of the previous fiscal year.
*2. Intersegment sales or transfers are eliminated.

(Billions of yen)Previous forecast(August 16, 2021)
900.0
874.0
26.0
245.0
245.0
175.0

Consolidated Forecast for the Year Ending March 31, 2022
Revised forecast
Net Sales
1,900.0
35.8%
Semiconductor Production Equipment
1,840.0
39.9%
FPD Production Equipment
60.0(28.4)%
Operating Income
551.0
71.8%
Ordinary Income
551.0
71.1%
Net Income Attributable to Owners of Parent
400.0
64.6%
Notes:*1. Percentages indicate changes from the same period of the previous fiscal year.
*2. Intersegment sales or transfers are eliminated.

(Billions of yen)Previous forecast(August 16, 2021)
1,850.0
1,793.0
57.0
508.0
508.0
370.0

Note: The financial forecasts and estimates stated in this Summary of Consolidated Financial Results are based on certain assumptions
judged to be 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 performance. The company does not promise that theforecasts or estimates will be accurate.

5

TOKYO ELECTRON

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.

6

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2021

September 30, 2021

ASSETS
Current assets
Cash and deposits

186,538

Trade notes and accounts receivable

191,700

Notes and accounts receivable - trade, and contract assets

280,439--

301,315

Securities

125,014140,000

Merchandise and finished goods

269,772

190,407

Work in process

80,742

128,201

Raw materials and supplies

64,82875,534

Others97,19767,716

(99)

(147)

1,015,696

1,183,467

196,967

205,995

Others17,163

19,788

Total intangible fixed assets

17,163

19,788

196,943

226,046(1,407)(1,259)195,536

224,786

409,667

450,570

1,425,364

1,634,037

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

Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total long-term assets
Total assets

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TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2021

September 30, 2021

LIABILITIESCurrent liabilities
Trade notes and accounts payable

90,606

92,775

Income taxes payable

49,272

72,339Customer advances

81,722

92,242

Accrued employees’ bonuses

34,254

36,148

Accrued warranty expenses

14,415

20,162Other allowances

2,872

2,794

Others54,51654,120Total current liabilities

327,661

370,583

Long-term liabilities
Other allowances

3,834

5,782

Net defined benefit liabilities

62,13762,358Others

7,167

9,430

Total long-term liabilities

73,14077,571

400,801

448,154

Common stock

54,961

54,961

Capital surplus

78,01178,011Retained earnings

835,240

968,796

Treasury stock, at cost

(30,744)(28,321)

Total shareholders' equity

937,468

1,073,448

66,124

88,769Total liabilities
NET ASSETS
Shareholders' equity

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

(79)

(29)

10,441

11,675

Accumulated remeasurements of defined benefit plans

(978)

(574)

Total accumulated other comprehensive income (loss)

75,50899,841

Foreign currency translation adjustments

Share subscription rights
Total net assets
Total liabilities and net assets

8

11,585

12,593

1,024,562

1,185,882

1,425,364

1,634,037

TOKYO ELECTRON

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

Six months ended

September 30, 2020

September 30, 2021

Net sales

668,160

932,514

Cost of sales

403,331509,639

Gross profit

264,829422,874

Research and development expenses

66,37775,547

Others51,022

72,679Total selling, general and administrative expenses

117,399

148,226

147,429

274,647

Dividend income

737

918

Share of profit of associates accounted for using the equity method

290

867

Others

1,459

1,836

Total non-operating income

2,486

3,621

1,177

153

Selling, general & administrative expenses

Operating income
Non-operating income

Non-operating expenses
Foreign exchange loss
Others

510

353

1,687

506

148,228

277,762

Gain on sales of fixed assets

13

3

Total unusual or infrequent profit

13

3

Total non-operating expenses
Ordinary income
Unusual or infrequent profit

Unusual or infrequent loss
Loss on disposal and sales of fixed assets

532

137

-

4,577

532

4,714

Income before income taxes

147,709

273,050

Income taxes

35,697

72,830Net income

112,012200,219

Net income attributable to owners of parent

112,012200,219

Additional payment of value-added tax
Total unusual or infrequent loss

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TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Six months ended

Six months ended

September 30, 2020

September 30, 2021

112,012200,219

10,471

22,65062-

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

896

1,205

Remeasurements of defined benefit plans

330

414

Share of other comprehensive income of associates
accounted for using the equity method

(23)

62

11,737

24,332

123,750

224,552

123,750

224,552

Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

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TOKYO ELECTRON

Consolidated Statements of Cash Flows(Millions of yen)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Income before income taxes

147,709

273,050

Depreciation and amortization

15,255

16,792

98

103

(687)

3,358

16,626-

Cash flows from operating activities

Amortization of goodwill
Increase (decrease) in accrued warranty expenses
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in notes and accounts receivable - trade, andcontract assets-(71,745)

34(27,585)

Increase (decrease) in trade notes and accounts payable(8,787)

1,381

Decrease (increase) in prepaid consumption tax

31,22331,247

Increase (decrease) in accrued consumption tax(7,704)(2,679)

Increase (decrease) in customer advances(46,526)

22,871Others10,896

7,336

Subtotal

Decrease (increase) in inventories

158,140

254,130

Receipts from interest and dividends

1,175

1,522

Income taxes paid or refund (paid)(53,389)(49,738)

Net cash provided by operating activities

105,926

205,914381

481

Decrease (increase) in short-term investments

35,000

5,014

Payment for purchase of fixed assets(24,345)(25,645)

Payment for acquisition of intangible assets(2,914)(4,977)

Others

(729)

(658)

Net cash provided by (used in) investing activities

7,391(25,785)

Payment for purchase of treasury stock(4,328)(8)

Dividends paid

(53,351)(65,746)

Cash flows from investing activities
Decrease (increase) in time deposits

Cash flows from financing activities

OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

(309)

(436)

(57,989)(66,190)567

432

Net increase (decrease) in cash and cash equivalents

55,897

114,370

Cash and cash equivalents at beginning of period

247,959

265,993

Cash and cash equivalents at end of period

303,856

380,364

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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 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: Yes
Changes in accounting policies
1. Accounting Standard for Revenue Recognition
From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31, 2020) and recognizes revenue with the amounts expected to be received in exchange for the promised
goods or services as the control of such goods or services are transferred to customers.
Regarding sales of semiconductor and FPD (Flat Panel Display) production equipment, goods and set-up services to be transferred werepreviously identified as a single performance obligation and revenue was recorded at the time of the confirmation of set-up in principle. Goingforward, performance obligations related to goods and set-up services to be transferred for equipment are separately identified and revenue
is recognized when each performance obligation is satisfied, which is when equipment is delivered to customers and services related tosetting up equipment are completed.
In addition, in case over a certain quantity of equipment is transacted with a same customer, that could include special price transactions
corresponding to such as purchase quantities. For those transactions with special prices, although revenue was previously recognized basedon each order price, on the ground that sales prices of whole transactions fluctuate by such as future purchase quantity, the accounting
method is changed to estimate those special prices as variable consideration and include it in the transaction price only to the extent that it isprobable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with thevariable consideration is subsequently resolved.
The application of such changes in accounting policies follows the transitional treatment prescribed in the proviso of paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy
had been applied to periods prior to the beginning of the first quarter of this fiscal year, was added to or subtracted from the beginningbalance of retained earnings of the first quarter of this fiscal year.
As a result, for the second quarter of this fiscal year, net sales increased by 185,775 million yen, cost of sales increased by 84,407 million yen,and each of operating income, ordinary income and income before income taxes increased by 101,367 million yen, accordingly. In addition,
the beginning balance of retained earnings decreased by 753 million yen.
Due to the application of the Accounting Standard for Revenue Recognition, “Trade notes and accounts receivable” presented under “Current
assets” in the consolidated balance sheet for the previous fiscal year was included in “Notes and accounts receivable - trade, and contract
assets” from the first quarter of this fiscal year. In accordance with the transitional treatment prescribed in the paragraph 89-2 of the
Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordance with the new
approach to presentation.
2. Accounting Standard for Fair Value Measurement
From the beginning of the first quarter of this fiscal year, the Company applies “Accounting Standard for Fair Value Measurement”(ASBJ Statement No. 30, July 4, 2019). In accordance with the transitional treatment prescribed in the paragraph 19 of the AccountingStandard for Fair Value Measurement and paragraph 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10,
July 4, 2019), new accounting policies prescribed by the Accounting Standard for Fair Value Measurement is adopted prospectively.
There is no effect by this change on the consolidated financial statements.

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TOKYO ELECTRON

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, deposition systems, cleaning systems used in wafer processing,wafer probers used in the wafer testing process and other semiconductor production equipment, such as wafer bonders/debonders.
The SPE segment principally develops, manufactures, and sells such products, and provides services on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture offlat panel displays and inkjet printing systems used in the manufacture of OLED displays. The FPD production equipment segmentprincipally develops, manufactures, and sells such products, and provides services on them.
(ii) Net sales and profit or loss in reportable segments
Six months ended September 30, 2021 (April 1, 2021 to September 30, 2021)(Millions of yen)

Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

Others *1

Total

Net sales

905,763

26,682

13,093

945,539

Segment profit (loss)

305,948890

366

307,205

Adjustments *2

Consolidated *3

Net sales(13,025)

932,514Segment profit (loss)(34,154)

273,050

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.
*2. "Adjustments" for segment profit (loss) totaling (34,154) million yen mainly consists of research and development costs of (10,868)
million yen pertaining to the fundamental research and element research of TEL and other general and administrative costs that do
not belong to reportable segments.
*3. Segment profit (loss) is adjusted against income before income taxes in Consolidated Statements of Income.
(iii) Matters about changes of reportable segment, etc.
(Adoption of Accounting Standard for Revenue Recognition)
As described in “Changes in accounting policies”, the Company changed accounting treatment for revenue recognition by adopting the
Accounting Standard for Revenue Recognition from the beginning of the first quarter of this fiscal year, and accordingly changed themethods relevant to measuring profits or losses of business segments in the same manner.
As a result, in comparison with the previous method, net sales of the semiconductor production equipment segment and the FPD
production equipment segment in the second quarter of this fiscal year increased by 183,566 million yen and increased by 2,208 million yen,respectively. In addition, segment profit of the semiconductor production equipment segment and the FPD production equipment segment
increased by 100,686 million yen and increased by 681 million yen, respectively.
(iv) 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: None13