Briefing on Financial Estimates of FY2021(April 2020 – March 2021)
June 18, 2020
Agenda: Business Environment and Financial Estimates
Toshiki Kawai, Representative Director, President & CEO

CORP IR / June 18, 20201

Forward Looking Statements
 Disclaimer regarding forward-looking statements
Forward-looking statements with respect to TEL’s business plan, prospects and other such information are based oninformation available at the time of publication. Actual performance and results may differ significantly from thebusiness plan described here due to changes in various external and internal factors, including the economic
situation, semiconductor/FPD market conditions, intensification of sales competition, safety and product quality
management, intellectual property-related risks, and impacts from COVID-19.

 Processing of numbers
For the amount listed, because fractions are rounded down, there may be the cases where the total for certain
account titles does not correspond to the sum of the respective figures for account titles. Percentages are calculatedusing full amounts, before rounding.
 Exchange risk
In principle, export sales of Tokyo Electron’s mainstay semiconductor and FPD production equipment aredenominated in yen. While some settlements are denominated in dollars, exchange risk is hedged as forward
exchange contracts are made individually at the time of booking. Accordingly, the effect of exchange rates on profits
is negligible.

FPD: Flat panel display
CORP IR / June 18, 20202

We want to offer our sympathies to everyone who has been affected by
the COVID-19 pandemic.
We also want to express our sincere thanks to the medical professionals
and everyone else who are working hard to overcome this trying situationand enable a return to normal life as soon as possible.

Toshiki Kawai
Representative Director, President & CEO

CORP IR / June 18, 20203

Business Environment and Financial Estimates
June 18, 2020
Toshiki Kawai
Representative Director, President & CEO

CORP IR / June 18, 20204

Business Environment (Outlook as of June 2020)► WFE*1 capex
Expecting CY2020 investment to increase approx. 10% YoY
While the macro economy needs to be watched closely, there is strong
demand for equipment at present
The WFE market is forecast to reach a record size

► FPD production equipment capex for TFT array process*2Continuing investment in large panels for TVs and a recovery in investment inOLED for mobile applications
Expecting approx. 15% YoY growth in CY2020*1 WFE (Wafer fab equipment): The semiconductor production process is divided into front-end production, in which circuits are formed on wafers and inspected, and back-end production, in
which wafers are cut into chips, assembled and inspected again. Wafer fab equipment refers to the production equipment used in front-end production and in wafer-level packaging production.
*2 TFT array process: The processes of manufacturing the substrates with the electric circuit functions that drive displays

CORP IR / June 18, 2020

5

CY’20 WFE Market and Business Opportunities by Application
 Logic/Foundry: Expecting high level in-line with last year
– Market environment: Firm demand for both leading-edge and matured technologies– Opportunities: Business expansion in more complex patterning processes

 DRAM: Approx. 15-20% increase YoY– Market environment: Approx. 80% of capex for 1Ynm generation and beyond– Opportunities: Adoption of new technologies that accommodate scaling Non-volatile memory: Approx. 50% increase YoY– Market environment: Accelerating investment for expanding production capacity.
9X/12X generations to comprise over 80% of capex– Opportunities: Differentiation through high value-added etch and clean

CORP IR / June 18, 2020

6

FY2021 Financial Estimates(Billion yen)

FY2020(Actual)

FY2021 (Estimates)
H1

H2

Full year

Full year
YoY change

Net sales

1,127.2

620.0

660.0

1,280.0+13.5%

SPE

1,060.9

585.0

615.0

1,200.0+13.1%FPD66.035.0

45.0

80.0

+21.0%

Gross profit

451.9

248.0

272.0

520.0

+67.9

Gross profit margin

40.1%

40.0%

41.2%

40.6%

+0.5pts

SG&A expenses

Operating income

214.6
237.2

121.0
127.0

124.0
148.0

245.0
275.0

+30.3
+37.6

Operating margin

21.0%

20.5%

22.4%

21.5%

+0.5pts

Income before income taxes
Net income attributable toowners of parent

244.6

127.0

148.0

275.0

+30.3

185.2

95.0

110.0

205.0

+19.7

1,170.57

610.83-

1,318.11+147.54

Net income per share (Yen)Aim for higher net sales and income while continuing growth investment
CORP IR / June 18, 2020

SPE: Semiconductor production equipment, FPD: Flat panel display production equipment

7FY2021 SPE Division New Equipment Sales Forecast
Sales by application(Billion yen)

500436.0

400

16%

329.0
300
200
1000

430.0
25%

450.0
25%

19%
26%
21%
21%
21%
21%
32%
33%
FY'20 H1(Actual)

DRAM

Non-volatile memory
25%

25%
Logic foundry

30%
30%

Logic & others
35%
35%
FY'20 H2(Actual)

50%

50%

FY'21 H1(Estimates)

FY'21 H2(Estimates)

Logic foundry +Logic & others

Increase in sales accompanying recovery in memory investment
Percentages on the graph show the composition ratio of new equipment sales. Field solutions sales are not included.
Figures for FY2021 are rough estimates.

CORP IR / June 18, 20208

FY2021 R&D Expenses, Capex Plan
 R&D Expenses ¥135.0B– Continue investing based on focus areas andsustainable growth Capex ¥56.0B(Billion Yen)

150
100

– Actively invest in advanced technologies R&D
and to meet increasing production

83.8

113.9

120.2

FY'19

FY'20

135.0

97.1

500

 Depreciation ¥38.0B

R&D expenses

FY'17FY'18

FY'21(E)New production buildings(deposition systems, gas chemical etch systems, test systems)(Billion Yen)

Capex

Depreciation

6038.040200

Nirasaki City, Yamanashi Prefecture:
approx. ¥13.0B construction cost
(Scheduled to begin operation in
August 2020)

CORP IR / June 18, 2020

Oshu City, Iwate Prefecture:
approx. ¥13.0B construction cost
(Scheduled to begin operation in
July 2020)

56.0

54.6

49.7

45.6
20.6 17.8

FY'17

20.6

FY'18

24.3

FY'19

Expect to make record R&D investment
to maximize capture of future growth potential29.1

FY'20

FY'21(E)9

FY2021 Dividend ForecastDividend per share(Yen)

758 yen800

660 yen

624 yen

588 yen600

Dividend payout ratio:
Year-end
354 yen352 yen400

237 yen200

TEL shareholder return policy

Interim
306 yen50%

Annual DPS of not less than 150 yen
We will review our dividend policy if the company does not generate
net income for two consecutive fiscal years

We will flexibly consider share buybacks

0

FY'16

FY'17

FY'18

FY'19

FY'20

FY'21(E)

Expect to pay DPS of 660 yen, in-line with 50% dividend payout ratio
CORP IR / June 18, 2020

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CORP IR / June 18, 202011