TOKYO ELECTRON ANNUAL REPORT 2019

PAGE17CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Review of Operations
and Business Outlook

Interview with the CEO

Financial Section
Investor Information

Corporate Governance

Financial Review
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Changes in Net Assets
Consolidated Subsidiaries
Consolidated Statements of Cash Flows
Independent Auditor’s Report
Notes to Consolidated Financial Statements

Investor Information

Consolidated Balance Sheets
Tokyo Electron Limited and SubsidiariesAs of March 31, 2019 and 2018

Thousands ofU.S. dollars

Millions of yen

ASSETS

2019

2019

2018

Current assets:

Thousands ofU.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2019

2018

75,448¥ 108,607

2019

Current liabilities:

Cash and cash equivalents

¥ 232,634¥ 257,877$ 2,095,997

Short-term investments

160,000

116,000

1,441,571

Income taxes payable

57,671

66,046519,605

Trade notes and accounts receivable

146,971

159,570

1,324,185

Customer advances

77,247100,208

695,990

(84)

(59)

(765)

Accrued employees’ bonuses

33,13934,467

298,584

Inventories

354,219

344,071

3,191,455

Accrued warranty expenses

14,097

11,284

127,012

Other current assets

89,156

69,137803,281

Other current liabilities

47,277

47,837425,961   Total current assets

982,897

946,597

8,855,726

304,882

368,452

2,746,935

Net defined benefit liabilities

60,97559,684549,382

Other liabilities

3,652

3,150

32,904   Total non-current liabilities

64,62862,834582,287  Total liabilities

369,510431,287

3,329,222  Common stock   Authorized: 300,000,000 shares
Issued: 165,210,911 and 165,210,911 shares
as of March 31, 2019 and 2018, respectively

54,961

54,961

495,190  Capital surplus

78,01178,011

702,865  Retained earnings

748,827625,3906,746,800   Treasury stock, at cost   1,252,517 and 1,097,342 shares
as of March 31, 2019 and 2018, respectively(11,821)(7,518)(106,513)

13,024

17,134

117,346

(34)

278

(314)

Allowance for doubtful accounts

Trade notes and accounts payable   Total current liabilities

¥$679,780

Non-current liabilities:

Property, plant and equipment:Land

26,84928,030241,907

Buildings

169,682

159,474

1,528,805

Machinery and equipment

153,830

138,932

1,385,980

Construction in progress

19,643

11,060176,988

370,005

337,498

3,333,682

Less: Accumulated depreciation

219,936

211,546

1,981,587   Net property, plant and equipment

150,069

125,952

1,352,094   Total property, plant and equipmentInvestments and other assets:

Net assets:
Shareholders’ equity

Investment securities

27,85333,128250,950

Accumulated other comprehensive income

Deferred tax assets

63,92562,442575,959   Net unrealized gains on investment securities

Net defined benefit assets

3,065

—

27,618   Net deferred gains (losses) on hedging instruments

Intangible assets

9,054

15,882

81,578   Foreign currency translation adjustments

4,366

5,507

39,339Other assets

22,18920,215

199,921   Accumulated remeasurements of defined benefit plans(6,585)(6,618)(59,330)

Allowance for doubtful accounts

(1,426)(1,422)(12,850)

7,368

4,363

66,391   Total investments and other assets

124,661

130,246

1,123,178

888,117771,5098,001,777¥1,257,627¥1,202,796$11,330,999¥1,257,627¥1,202,796$11,330,999

Total assets
See accompanying Notes to Consolidated Financial Statements.

Share subscription rights
   Total net assets
Total liabilities and net assetsTOKYO ELECTRON ANNUAL REPORT 2019

PAGE

18

CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Review of Operations
and Business Outlook

Interview with the CEO

Financial Section
Investor Information

Corporate Governance

Financial Review
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report
Consolidated Subsidiaries

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2019 and 2018

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2019 and 2018

Thousands ofU.S. dollars

Millions of yen

Net sales
Cost of sales Gross profit
Selling, general and administrative expenses
Operating income

2019

2018

2019

¥1,278,240
752,057
526,183
215,612
310,571¥1,130,728
655,695
475,032
193,860
281,172$11,516,718
6,775,900
4,740,817
1,942,626
2,798,191

2,573

859

23,188

817
378
3,623
101
768
(57)
(967)

571
334
(2,897)
77
—
(71)
(487)

7,361
3,410
32,647
916
6,927
(513)
(8,719)Other income (expenses):
Interest and dividend income
Share of profit of associates accounted for using the equity method
Insurance dividend income
Foreign exchange gain (loss), netGain on sales of property, plant and equipment
Gain on sales of investment securities
Maintenance and operation costs of closed facilities
Loss on sales and disposal of property, plant and equipment Loss on impairment of property, plant and equipment,
goodwill and other assets
Loss on revision of retirement benefit plan
Other, net
Income before income taxes

—(925)——
3,698
321,508(3,154)(236)
275,242—
33,324
2,896,735

Income taxes:
Current
DeferredNet income

72,478801
248,228

83,434(12,591)
204,399

653,0227,223
2,236,489—¥ 248,22828¥ 204,371—$ 2,236,489

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

Yen

Per share of common stock:
Net income — basic
Net income — diluted
Net assetsCash dividends
See accompanying Notes to Consolidated Financial Statements.

¥1,513.58
1,507.22
5,371.78758.00Investor Information

U.S. dollars¥1,245.48
1,241.22
4,674.49
624.00$13.64
13.58
48.40
6.83

Thousands ofU.S. dollars

Millions of yen

Net income
Other comprehensive income (loss):
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments
Foreign currency translation adjustments
Remeasurements of defined benefit plans Share of other comprehensive income of associates accounted
for using the equity method
Total other comprehensive income (loss)
Comprehensive income 
Total comprehensive income attributable to:
Owners of parent
Non-controlling interests
See accompanying Notes to Consolidated Financial Statements.

2019

2018

2019

¥248,228¥204,399$2,236,489(4,102)(272)(1,170)
(106)

6,337
198
(242)(4,494)(36,962)(2,450)(10,548)(957)

119(5,531)
242,696(46)
1,752
206,152

1,077(49,841)
2,186,648

242,696—

206,12229

2,186,648—

TOKYO ELECTRON ANNUAL REPORT 2019

PAGE

19CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Review of Operations
and Business Outlook

Interview with the CEO

Financial Section
Investor Information

Corporate Governance

Financial Review
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net AssetsConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report
Consolidated Subsidiaries

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flows

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2019 and 2018

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2019 and 2018

Investor Information

Thousands ofU.S. dollars

Millions of yen
Shareholders’ equity

Balance as ofMarch 31, 2017

Millions of yen

Accumulated other comprehensive income

Commonstock

CapitalsurplusRetainedearnings

Treasurystock

Net deferred
Net unrealizedgainsForeign
Accumulated
gains on(losses) oncurrency
remeasurements
Shareinvestment
hedgingtranslation of defined benefit subscription
securities
instruments adjustments
plansrights

Noncontrollinginterests

Total
net assets¥54,961¥78,023¥503,325¥ (7,766)¥10,788¥ 59¥5,789¥(2,086)¥2,620¥284¥645,999

Cash dividends——(82,203)

—

—

—

—

—

—

—

(82,203)

Net income attributable toowners of parent——

204,371

—

—

—

—

—

—

—

204,371

Repurchase of treasury
stock

—

—

—

(16)

—

—

—

—

—

—

(16)

Disposal of treasury stock

—

—

(102)

264

—

—

—

—

—

—

161

Change in equity of parent arising from transactions
with non-controllingshareholders

—

(12)

—

—

—

—

—

—

—

—

(12)

Other, net

—

—

—

—

6,345

219

(281)

(4,531)

1,742

(284)

3,209

Balance as ofMarch 31, 2018

¥54,961¥78,011¥625,390¥ (7,518)¥17,134¥278¥5,507¥(6,618)¥4,363¥ —¥771,509

Cash dividends——(124,754)

—

—

—

—

—

—

—

(124,754)

Net income attributable toowners of parent——

248,228

—

—

—

—

——

—

248,228

Repurchase of treasury
stock

—

——

(5,004)

—

—

—

—

—

—

(5,004)

Disposal of treasury stock

—

—

(36)

701

—

—

—

—

—

—

664

Other, net

—

—

—

—

(4,109)(313)(1,141)

33

3,005

—

(2,526)¥54,961¥78,011¥748,827¥(11,821)¥13,024¥ (34)¥4,366¥(6,585)¥7,368¥ —¥888,117

Balance as ofMarch 31, 2019

Thousands of U.S. dollars
Shareholders’ equity

Commonstock

Balance as ofMarch 31, 2018

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

TreasurystockNet deferred
Net unrealized
gains
Foreign
Accumulated
gains on(losses) on
currency
remeasurements
Shareinvestment
hedgingtranslation of defined benefit subscription
securities
instruments adjustments
plansrights$495,190 $702,865 $5,634,655 $ (67,742) $154,375

Noncontrollinginterests

Total
net assets$2,510$49,625$(59,627)$39,310$—$ 6,951,163

Cash dividends—— (1,124,013)

—

—

—

—

—

—

—

(1,124,013)

Net income attributable toowners of parent—— 2,236,489

—

—

—

—

—

—

—

2,236,489

Repurchase of treasurystock

—

—

—

(45,087)

—

—

————

(45,087)

Disposal of treasury stock

—

—

(330)

6,316

—

—

—

—

—

—

5,986

Other, net

—

—

—

—

(37,029)(2,825) (10,285)

297

27,080—(22,761)$495,190 $702,865 $6,746,800 $(106,513) $117,346$ (314) $39,339$(59,330)$66,391$—$ 8,001,777

Balance as ofMarch 31, 2019

See accompanying Notes to Consolidated Financial Statements.

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization Loss on impairment of property, plant and equipment,
goodwill and other assets
Amortization of goodwill
Increase (decrease) in accrued employees’ bonuses
Increase in accrued directors’ bonuses
Increase in accrued warranty expenses
Interest and dividend income
Decrease (increase) in trade notes and accounts receivable
Increase in inventories
Increase (decrease) in trade notes and accounts payable
Decrease (increase) in prepaid consumption tax
Increase (decrease) in accrued consumption tax
Increase (decrease) in customer advances
Other, net
Subtotal
Receipts from interest and dividendsIncome taxes paidNet cash provided by operating activities
Cash flows from investing activities:
Payment for purchases of short-term investments
Proceeds from maturities of short-term investments
Payment for purchases of property, plant and equipment Proceeds from sales of shares of subsidiaries resulting in change
in scope of consolidation
Other, netNet cash used in investing activities
Cash flows from financing activities:
Payment for purchases of treasury stock
Dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
See accompanying Notes to Consolidated Financial Statements.

2019

2018

2019

¥321,508
24,323¥275,242
20,619$2,896,735
219,151—354(1,165)492
2,968(2,573)
10,541(14,765)(31,752)
6,818(2,845)(22,077)(2,062)289,766
2,738(102,932)
189,572925
600
12,7102,573
2,769(859)(25,971)(109,846)
28,535(13,896)
1,297
31,6848,851
235,238
1,115(49,771)
186,582—
3,197(10,501)
4,435
26,748(23,188)
94,979(133,036)(286,085)
61,431(25,636)(198,911)(18,579)
2,610,740
24,675(927,402)
1,708,013(209,500)
165,500(46,517)(131,000)
166,000(41,750)(1,887,557)
1,491,125(419,110)

10,75496,896(4,270)(84,033)—(5,082)(11,833)(38,479)(757,125)(5,004)(124,754)(3)(129,761)(1,020)(25,243)
257,877¥232,634(16)(82,203)(329)(82,549)
1,312
93,511
164,366¥257,877(45,087)(1,124,013)(28)(1,169,129)(9,194)(227,435)
2,323,433$2,095,997