TOKYO ELECTRON ANNUAL REPORT 2013

PAGE24

CONTENTSCONTENTS

Financial Highlights

Business Overview

Financial Review

Top Message

Special Feature

Consolidated Eleven-Year Summary

Consolidated Statements of Changes in Net Assets

Review of Operations
and Business Outlook

Corporate GovernanceConsolidated Balance Sheets

Consolidated Statements of Cash Flows

Corporate Citizenship

Consolidated Statements of Income

Intellectual Property

Financial Section

Corporate Data

Consolidated Statements of Comprehensive Income

Notes to Consolidated Financial Statements

Independent Auditor’s Report

Consolidated Balance Sheets
Tokyo Electron Limited and Subsidiaries
As of March 31, 2013 and 2012
Thousands of
U.S. dollars

Millions of yen

ASSETS

2013

2012

2013

Current assets:

Thousands of
U.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2013

2012

2013

¥ 36,261¥ 46,987$  385,550

Current liabilities:

Cash and cash equivalents

¥ 85,314¥158,776$  907,113

Trade notes and accounts payable

Short-term investments

154,816

88,8491,646,103

Customer advances

18,98526,373201,861

Trade notes and accounts receivable

100,501

150,306

1,068,591

Accrued warranty expenses

8,345

8,904

88,729(1,180)(1,376)(12,546)

Accrued expenses and other current liabilities

43,07942,530458,044

Inventories

135,698

149,470

1,442,828   Total current liabilities

106,670

124,794

1,134,184

Deferred income taxes

15,66923,546

166,603

Prepaid expenses and other current assets

30,68337,480326,242

521,501

607,051

5,544,934

Accrued pension and severance costs

57,22555,266

608,453

Other liabilities

6,506

4,948

69,176

170,401

185,008

1,811,813

54,961

54,961

584,381

Allowance for doubtful accounts   Total current assets  Total liabilities

Property, plant and equipment:Land

25,03026,260266,135

Buildings

163,857

143,462

1,742,233

Machinery and equipment

140,066

115,834

1,489,271

Construction in progress

6,076

9,515

64,604

335,029

295,071

3,562,243   Common stock   Authorized: 300,000,000 shares
Issued: 180,610,911 shares as of March 31, 2013 and 2012

Less: Accumulated depreciation

199,331

168,186

2,119,415   Capital surplus

78,02378,023

829,591   Net property, plant and equipment

135,698

126,885

1,442,828  Retained earnings

467,921471,186

4,975,237(9,589)(9,748)(101,956)   Total property, plant and equipment

Net assets:
Shareholders’ equity   Treasury stock, at cost   1,424,203 and 1,446,079 shares
as of March 31, 2013 and 2012, respectively

Investments and other assets:
Investment securities

18,66916,082

198,501

Accumulated other comprehensive income

Deferred income taxes

23,206

17,585

246,741   Net unrealized gains on investment securities

4,214

3,576

44,805

Goodwill

38,373—408,006   Net deferred losses on hedging instruments

(15)

(51)

(159)

Intangible assets

21,545

4,704

229,080   Foreign currency translation adjustments

(2,484)(11,158)(26,412)

Other assets

18,64815,152

198,278

Share subscription rights

1,375

1,157

14,620Allowance for doubtful accounts

(2,112)(3,848)(22,456)

Minority interests

10,721

10,657

113,992   Total investments and other assets

118,329

49,675

1,258,150   Total net assets

605,127

598,6036,434,099

Total assets

¥775,528¥783,611$8,245,912

Total liabilities and net assets

¥775,528¥783,611$8,245,912

See accompanying Notes to Consolidated Financial Statements.

TOKYO ELECTRON ANNUAL REPORT 2013

PAGE25

CONTENTSCONTENTS

Financial Highlights

Business Overview

Top Message

Financial Review

Special Feature

Consolidated Eleven-Year Summary

Consolidated Statements of Changes in Net Assets

Review of Operations
and Business Outlook

Corporate GovernanceConsolidated Balance Sheets

Consolidated Statements of Cash Flows

Corporate Citizenship

Consolidated Statements of Income

Intellectual Property

Financial Section

Consolidated Statements of Comprehensive Income

Notes to Consolidated Financial StatementsIndependent Auditor’s Report

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2013 and 2012

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2013 and 2012
Thousands ofU.S. dollars

Millions of yen

2013

2012

2013

¥497,300¥633,091$5,287,613

Income before minority interests

Cost of sales Gross profit

338,545
158,755

421,646
211,4453,599,628
1,687,985

Other comprehensive income (loss):

Selling, general and administrative expenses
Operating income146,206
12,549151,00260,4431,554,556
133,429

Changes in fair value of investment securities
Changes in deferred gains (losses) on hedging instruments
Foreign currency translation adjustments
Total other comprehensive income (loss)

Other income (expenses):
Interest and dividend income

1,659

1,010

17,640

Revenue from grants

2,672

1,740

28,410

Provision of allowance for doubtful accounts

—(1,848)—

Reversal of allowance for doubtful accounts

558

—

5,933

Gain on sale of property, plant and equipment

943

566

10,027

Loss on sale and disposal of property, plant and equipment

(153)

(406)

(1,627)

Gain on collection of written-off receivables

—

1,437

—

(1,520)(32)(16,162)

Loss on liquidation of subsidiaries and affiliates

(134)

—

(1,425)

Reorganization costs

(132)

—

(1,403)

Loss on business restructuring

—

(849)

—

Loss on devaluation of investment securities, net

(44)

(817)

(468)

Loss from natural disasters

—

(936)

—

1,369
17,767294
60,602

14,556
188,910

Current

6,255

15,023

66,507

Prior years

2,195

—

23,339

2,959
6,358

8,400
37,17931,46267,602

Foreign exchange loss, net

Other, net
Income before income taxes and minority interests
Income taxes:

Deferred
Income before minority interests
Minority interests
Net income

282

453

2,998

¥  6,076¥ 36,726$  64,604

Yen

U.S. dollars

Per share of common stock:
Net income — basic¥  33.91¥  205.04$    0.36

Net income — diluted

33.85

204.720.36

3,309.58

3,275.14

35.19

51.00

80.00

0.54

Net assetsCash dividends
See accompanying Notes to Consolidated Financial Statements.

Thousands ofU.S. dollars

Millions of yenNet sales

Corporate Data2013

2012

2013

¥ 6,358¥37,179$ 67,602

652

769

6,933

56(69)

595

8,760

(925)

93,142

9,468

(225)

100,670

Comprehensive income

15,82636,954

168,272

Total comprehensive income attributable to:
Owners of the Company

15,42636,532

164,019

400

422

4,253

Minority interests
See accompanying Notes to Consolidated Financial Statements.

TOKYO ELECTRON ANNUAL REPORT 2013

PAGE

26

CONTENTSCONTENTS

Financial Highlights

Business Overview

Top Message

Financial Review

Special Feature

Consolidated Eleven-Year Summary

Consolidated Statements of Changes in Net Assets

Review of Operations
and Business Outlook

Corporate GovernanceConsolidated Balance Sheets

Consolidated Statements of Cash Flows

Corporate Citizenship

Consolidated Statements of Income

Intellectual Property

Financial Section

Consolidated Statements of Comprehensive Income

Notes to Consolidated Financial Statements

Independent Auditor’s Report

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flows

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2013 and 2012

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2013 and 2012
Thousands ofU.S. dollars

Millions of yen

Millions of yen

Shareholders’ equity

Accumulated other comprehensive income

Commonstock

Capitalsurplus

Unrealized
gains oninvestment
securities

Deferred
losses on
hedging
instruments

Foreigncurrencytranslation
adjustments

Sharesubscription
rightsMinority
interests

Total
net assets

Balance as of April 1, 2011
Cash dividends
Net income
Repurchase of treasury stockDisposal of treasury stock
Other, net¥54,961—————¥78,046
—
—
—
(23)
—

¥457,658 ¥(10,484)(23,102)—36,726
—
—
(12)
(96)
748
—
—

¥2,807
—
—
—
—769

¥(12)
—
—
—
—
(39)

¥(10,234)
—
—
——
(924)

¥1,499————(342)¥10,561————96¥584,802(23,102)36,726
(12)
629
(440)

Balance as of March 31, 2012
Cash dividends
Net income
Repurchase of treasury stockDisposal of treasury stock
Other, net¥54,961—————¥78,023—————¥471,186 ¥ (9,748)(9,317)
—
6,076
—
—
(15)
(24)
174
—
—

¥3,576
————
638

¥(51)
—
—
—
—
36

¥(11,158)
—
—
—
—
8,674

¥1,157————
218¥10,657————
64¥598,603(9,317)
6,076
(15)
150
9,630

Balance as of March 31, 2013

¥54,961¥78,023¥467,921¥4,214¥(15)¥ (2,484)¥1,375¥10,721¥605,127

Retainedearnings

Treasurystock¥ (9,589)

Shareholders’ equity

Commonstock

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

Treasurystock

Unrealized
gains oninvestment
securities

Deferred
losses on
hedging
instruments

Foreigncurrencytranslation
adjustments

Sharesubscription
rightsMinority
interests

Total
net assets

Balance as of March 31, 2012
Cash dividends
Net income
Repurchase of treasury stockDisposal of treasury stock
Other, net$584,381—————$829,591 $5,009,952 $(103,647)—(99,064)——
64,604
—
—
—
(159)
—
(255)
1,850
—
—
—

$38,022
—
—
—
—
6,783

$(542)————
383$(118,639)————
92,227$12,302
—
—
—
—
2,318

$113,312 $6,364,732—(99,064)—
64,604
—
(159)
—
1,595
680
102,391

Balance as of March 31, 2013

$584,381$829,591 $4,975,237 $(101,956)$44,805$(159)$ (26,412)$14,620$113,992 $6,434,099

See accompanying Notes to Consolidated Financial Statements.

2013

20122013

Cash flows from operating activities:
Income before income taxes and minority interests

¥ 17,767¥ 60,602$  188,910

Depreciation and amortization

26,631

24,198283,158

Amortization of goodwill

1,141

—

12,132

Increase in accrued pension and severance costs

1,825

2,446

19,405

Increase (decrease) in allowance for doubtful accounts

(2,167)2,111(23,041)

Decrease in accrued employees’ bonuses(2,750)(2,506)(29,240)

Increase (decrease) in accrued warranty expenses(2,918)1,343(31,026)

Interest and dividend income(1,659)(1,010)(17,640)(Increase) decrease in trade notes and accounts receivable

57,549(15,540)

611,898

Decrease in inventories

20,27916,023

215,619

Decrease in prepaid consumption tax

2,862

1,508

30,431

Increase (decrease) in accrued consumption tax

596(2,417)

6,337

Decrease in trade notes and accounts payable(15,482)(5,807)(164,615)

Decrease in customer advances(12,456)(4,567)(132,440)

1,928(1,890)20,500(Increase) decrease in specific doubtful receivables
Thousands of U.S. dollars

Corporate Data

Other, net(2,726)

1,912(28,984)

Subtotal

90,42076,406

961,404

Receipts from interest and dividends

1,587

978

16,874

(68)

(43)

(723)

Income taxes paid

(7,672)(47,629)(81,574)

Net cash provided by operating activities

84,267

29,712895,981

Payment for purchases of short-term investments

(192,057)(284,500)(2,042,073)

Proceeds from maturities of short-term investments

126,000

315,500

1,339,713

Payment for purchase of property, plant and equipment

(19,012)(36,010)(202,148)

Proceeds from sale of property, plant and equipment

3,630

1,102

38,596

Payment for acquisition of intangible assets

(1,234)(2,140)(13,121)(55,079)(348)(585,635)(1,097)—(11,664)

Interest paidCash flows from investing activities: Payment for acquisition of investments in newly consolidated
subsidiaries
Payments for transfer of business
Other, netNet cash used in investing activities

(2,920)(1,956)(31,047)(141,769)(8,352)(1,507,379)(646)(3,594)(6,869)Cash flows from financing activities:
Decrease in short-term borrowings
Increase in treasury stock, net
Dividends paid
Other, netNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

(15)

(12)

(159)

(9,317)(23,102)(99,064)

(647)

(627)

(6,880)(10,625)(27,335)(112,972)(5,335)(300)(56,725)

Net decrease in cash and cash equivalents(73,462)(6,275)(781,095)

Cash and cash equivalents at beginning of year

158,776165,051

1,688,208

Cash and cash equivalents at end of year¥ 85,314¥158,776$  907,113

See accompanying Notes to Consolidated Financial Statements.