TOKYO ELECTRON

July 31, 2009

Consolidated Financial Review
for the First Quarter Ended June 30, 2009
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 three months ended June 30, 2009
Three months ended
June 30, 2008
June 30, 2009
154,827
68,91521,430(14,388)
22,263(14,021)
12,853(11,035)
71.83(61.66)
71.69-(1) Operating results (Cumulative)
Net sales (Millions of yen)
Operating income (Millions of yen)
Ordinary income (Millions of yen)
Net income (Millions of yen)
Net income per share (Yen)
Fully diluted net income per share (Yen)(2) Financial position

Total assets (Millions of yen)
Net assets (Millions of yen)
Equity ratio (%)
Net assets per share (Yen)
Equity: 509,353 million yen (as of June 30, 2009)
518,387 million yen (as of March 31, 2009)

As ofMarch 31, 2009
668,998529,265
77.5
2,896.55

As ofJune 30, 2009
640,369
520,32679.5
2,846.00

Year ended
March 31, 2009

Year ending
March 31, 2010
(Forecast)
4.00
4.00
8.00

2. Dividends

2Q-end dividend per share (Yen)
Year-end dividend per share (Yen)Annual dividend per share (Yen)
Note: Revision of dividends forecast for during this period: No

20.00
4.00
24.00

3. Earnings forecasts for the year ending March 31, 2010
Six months ending
September 30, 2009
Net sales (Millions of yen)
Operating income (Millions of yen)
Ordinary income (Millions of yen)
Net income (Millions of yen)
Net income per share (Yen)
Note: Revision of earnings forecast for during this period: Yes

1

144,000(36,000)(35,000)(25,000)(139.69)

Year ending
March 31, 2010
318,000(57,000)(55,000)(37,000)(206.74)

TOKYO ELECTRON
4. Others(1) Important changes in subsidiaries. : None
(Changes on specific subsidiaries with changes in scope of consolidation)(2) Use of simplified accounting method and special accounting policy for quarterly financial reporting: Yes(3) Changes in principles, procedures and display of accounting method concerning quarterly consolidated
statement policies.
1. Changes in accounting policies: None
2. Other changes: None
(4) Number of shares outstanding (common stock)
1. Number of shares issued
As of June 30, 2009:

180,610,911 shares

As of March 31, 2009:

180,610,911 shares

2. Number of shares of treasury stock
As of June 30, 2009:

1,639,333 shares

As of March 31, 2009:

1,643,398 shares

3. Average number of shares outstanding
Three months ended June 30, 2009:

178,969,913 shares

Three months ended June 30, 2008:

178,932,452 shares

Explanations on 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 information currently available. Consequently, actual
operating results may differ substantially from the projections in the Financial Review.

2

TOKYO ELECTRON

Qualitative Information, Financial Statements, etc.

1. Qualitative Information on Consolidated Operating Results

By region, during the consolidated first quarter, the Asian economy showed signs of recovery in China andother countries, but the European and North American economies continued to face a difficult situation due
to the financial crisis and the deterioration of the real economy. Even though the Japanese economy has
been recovering from the worst period, with exports beginning to pick up and production showing signs ofbottoming out, a tough situation persisted due to reduced capital investment and other factors related to theuncertainty of a recovery for corporate earnings.

In the electronics industry in which the Tokyo Electron group operates, demand for electronic equipment
such as PCs, mobile phones, and digital home appliances remained sluggish. The semiconductor andFPD-related markets began to show signs of bottoming out, as evidenced by the recovery of semiconductor
prices due to inventory adjustment having run its course and the rising demand for liquid crystal panels
destined for the Chinese market, but those markets continued to face a difficult situation, falling short ofgenuine recovery.

Under these circumstances, consolidated net sales for the first quarter were 68,915 million yen (down
55.5% compared to the same period of the previous year). Consolidated operating losses and ordinary
losses, respectively, were 14,388 million yen (down by 35,818 million yen) and 14,021 million yen (down by
36,284 million yen). In addition, since the Company reported losses on impairment as a result of its decision
to make operational bases more efficient as “Unusual or infrequent loss,” the net losses for the first quarter
were 11,035 million yen (down by 23,888 million yen).

The overview of each business segment is as described below.

(1) Industrial Electronic Equipment BusinessNet sales from external customers in this segment during the consolidated first quarter were 50,470 million
yen (down 61.1% compared to the same period of the previous year).

(a) Semiconductor Production Equipment
Due to the worldwide recession in the semiconductor industry, semiconductor manufacturers continued tocurtail capital investment, and as a result sales for this segment remained sluggish. There were signs of theindustry bottoming out, as evidenced by the recovery of semiconductor prices due to inventory adjustment
in recent months and the rise in the equipment operating rate for semiconductor manufacturers, and orders

3

TOKYO ELECTRON

for the segment began to grow for the first time in three quarters, but the segment continued to facedifficulties, falling short of a genuine recovery. Under these circumstances, net sales from externalcustomers in this segment during the consolidated first quarter were 30,437 million yen (down 73.0%
compared to the same period of the previous year).

(b) Flat Panel Display/Photovoltaic Cell (FPD/PV) Production Equipment
Sales for this segment were affected by the curtailment and postponement of capital investment by panel
manufacturers, due to continued sluggish demand for finished products since last year, but net sales forexternal customers in the segment during the consolidated first quarter were higher than those for the same
period of the previous year, at 19,943 million yen (a 15.5% increase). In addition, the business environment
began to take a favorable turn, as evidenced by moves among some panel manufacturers to increase
production and resume capital investment because of the rising demand in China for liquid crystal panels. In
the segment of photovoltaic cell production equipment, meanwhile, the Company received many inquiries
about this business as environmental measures were taken on a global scale, but due to the effects of the
global financial crisis that has continued since last year, manufacturers tended to postpone their investment
plans.

(c) Others
Net sales for external customers in this segment during the consolidated first quarter were 89 million yen(down 4.7% compared to the same period of the previous year).

(2) Electronic Components and Computer Networks BusinessIn the segment of semiconductors and electronic devices, sales of consumer electronics such as digital
home appliances were recovering due in part to the contribution of new products, but the overall demandremained stagnant; in particular, sales of semiconductor products for industrial equipment continued to be
slow. In the segment related to computer systems, sales of computer network equipment remained sluggish,as manufacturers remained cautious about new IT investment given the worsening economic climate,although the performance of maintenance-related businesses continued to be strong. Under thesecircumstances, net sales for external customers in this segment during the consolidated first quarter were
18,445 million yen (down 26.0% compared to the same period of the previous year).

4

TOKYO ELECTRON(For reference）
Consolidated（Millions of yen）
FY2010
1Q

Net Sales
Industrial Electronic Equipment
Semiconductor Production Equipment
Japan
U.S.
EuropeKorea
TaiwanChina
S.E.Asia
ＦＰＤ/PV Production Equipment
OthersElectronic Components & Computer Networks
Operating Income (Loss)
Ordinary Income (Loss)Net Income (Loss)

68,91550,47030,437
4,932
12,430
2,833
2,861
5,917
483
979
19,94389
18,445(14,388)(14,021)(11,035)

FY2009Full Year
508,082
413,874
325,383
105,334
65,37430,38937,54649,30811,087
26,343
88,107384
94,207
14,71020,555
7,543

1Q

2Q

3Q

4Q

154,827
129,904
112,546
32,896
18,9097,900
14,842
25,724
3,788
8,484
17,26493
24,923
21,43022,263
12,853

146,398
119,196
96,15633,36916,010
6,942
11,791
13,1603,236
11,64522,915
124
27,202
4,852
6,644
4,508

101,088
78,25357,82721,007
13,538
5,751
5,700
4,896
3,301
3,631
20,37055
22,835(2,001)(74)(7,686)

105,767
86,52058,852
18,061
16,915
9,794
5,211
5,526
760
2,582
27,557110
19,246(9,570)(8,278)(2,132)

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

2. Qualitative Information on Consolidated Financial Conditions(1) Financial Conditions
Current assets at the end of the current consolidated first quarter decreased by 29,318 million yen
compared to the end of the previous fiscal year, to 476,368 million yen. Major factors included a combined
increase of 12,409 million yen in cash and deposits and certificates of deposit in securities; a decrease intrade notes and accounts receivable of 23,366 million yen; and a decrease in merchandise and finishedgoods of 10,201 million yen.

Tangible fixed assets decreased by 7,370 million yen from the end of the previous fiscal year, to 92,535
million yen.

Intangible fixed assets decreased by 772 million yen from the end of the previous fiscal year, to 9,987
million yen.

Investments and other assets increased by 8,833 million yen from the end of the previous fiscal year, to61,477 million yen.

As a result, total assets decreased by 28,628 million yen from the end of the previous fiscal year, to 640,369
million yen.

5

TOKYO ELECTRON

Current liabilities decreased by 20,429 million yen from the end of the previous fiscal year, to 68,842 million
yen. Major factors included a decrease in trade notes and accounts payable of 4,519 million yen.

Long-term liabilities increased by 739 million yen from the end of the previous fiscal year to 51,200 million
yen.

Net assets decreased because a net loss of 11,035 million yen was reported for the current first quarter andyear-end dividends for the previous fiscal year of 715 million yen were paid, and as a result net assets at theend of the current first quarter were 520,326 million yen. The equity ratio was 79.5%.

(2) Cash Flow
Cash and cash equivalents at the end of the current consolidated first quarter increased by 8,682 million
yen from the end of the previous fiscal year, to 74,566 million yen. The combined balance of cash and cash
equivalents, plus time deposits and certificates of deposit with deposit terms of over three months (which
are not included in cash and cash equivalents), increased by 12,409 million yen from the end of theprevious fiscal year, to 222,566 million yen. Cash flow from various activities during the current consolidated
first quarter is as described below.

Cash flow from operating activities decreased by 20,288 million yen from the same period of the previous
year, to 14,372 million yen. Major positive factors included 4,913 million yen in depreciation andamortization, a decrease in trade notes and accounts receivable of 23,531 million yen, a decrease ininventories of 9,089 million yen, and a decrease in prepaid consumption tax of 10,315 million yen. Major
negative factors included 18,406 million yen in loss before income taxes for the first quarter and a decreasein customer advances of 8,626 million yen.

Cash flow from investing activities during the current first quarter increased from 635 million yen for thesame period of the previous year to 5,372 million yen mainly because of the expenditure of 1,331 million
yen for the acquisition of tangible fixed assets, as well as the expenditure of 3,665 million yen due to a netincrease in time deposits.

Cash flow from financing activities during the current first quarter decreased from 10,047 million yen during
the same period of the previous year to 1,002 million yen mainly due to the payment of 715 million yen in
dividends.

6

TOKYO ELECTRON

3. Qualitative Information on Forecasts for Consolidated Financial Results

It is feared that Europe and North America will experience a prolonged recession in the future due to thefinancial crisis and the deterioration of the real economy, but there are some signs of recovery in Asia,
particularly China. In the semiconductor-related market, due to the worldwide recession in thesemiconductor market, capital investment by semiconductor manufacturers remains sluggish, but there are
growing signs of a bottoming out, as evidenced by the recovery of semiconductor prices and the rising
operating rate for production equipment. Under these circumstances, sales for the semiconductor
production equipment segment during the consolidated second quarter are expected to be larger thanpreviously predicted. Meanwhile, the Company reported unusual or infrequent loss as a result of its
decision to close three domestic bases for more efficient operation.

Taking these circumstances into account, the Company has revised the forecast of consolidated financial
results for the entire fiscal year announced on May 14, 2009, as follows:

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

Net Sales
Industrial Electronic Equipment
Semiconductor Production Equipment
FPD/PV Production Equipment
OthersElectronic Components & Computer Networks
Operating Income (Loss)
Ordinary Income (Loss)Net Income (Loss)

FY2010InterimFull Year
144.0-52.2%
318.0-37.4%
107.5-56.8%
241.0-41.8%
77.0-63.1%
181.0-44.4%
30.5-24.1%
60.0-31.9%
0.0
0.0
36.5-30.0%
77.0-18.3%
-36.0
-57.0
-35.0
-55.0
-26.0
-38.0
-

Note: The financial forecasts and estimates stated in this financial review are based on certain assumptions
judged to be reasonable at the present time in light of information currently available concerning economic
conditions in Japan and overseas, fluctuations in foreign exchange rates, and other factors that may havean impact on performance.
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
production equipment business. Consequently, actual sales and profits may differ substantially from the
projections stated in this financial review.

7

TOKYO ELECTRON

Consolidated Balance Sheet(Millions of yen)
As ofMarch 31, 2009

As ofJune 30, 2009ASSETS
Current assets
Cash and deposit

51,156

Trade notes and accounts receivable

119,687

96,320

Securities

159,001

168,500

Merchandise and finished goods

88,416

78,214Work in process

29,30630,661

Raw materials and supplies

16,51816,517

Others41,62032,116

Allowance for doubtful accounts

54,066(20)(28)

505,687

476,368

99,906

92,535

Others

10,7609,987

Total intangible fixed assets

10,7609,987

60,18969,040Total current assets
Long-term assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets
OthersAllowance for doubtful accounts(7,545)(7,562)

Total investments and other assets

52,644

61,477

163,311

164,001

668,998

640,369

Total long-term assets
Total assets

8

TOKYO ELECTRON(Millions of yen)
As ofMarch 31, 2009

As ofJune 30, 2009

LIABILITIESCurrent liabilities
Trade notes and accounts payable

24,393

19,873

Other allowance

11,113

7,547

Others

53,76541,421

Total current liabilities

89,272

68,84247,04647,716639

605

Others

2,773

2,878

Total long-term liabilities

50,46051,200139,732

120,042

Common stock

54,961

54,961

Capital surplus

78,11478,081Retained earnings

404,435

392,684

Long-term liabilities
Accrued pension and severance costs
Other allowance

Total liabilities
NET ASSETS
Shareholders' equity

Treasury stock(11,111)(11,082)

Total shareholders' equity

526,398

514,644

(842)

787

66

76

Translation adjustments(7,235)(6,155)

Total valuation and translation adjustments(8,011)(5,290)

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Subscription rights to shares

1,148

1,336

Minority interests

9,729

9,637

Total net assets

529,265

520,326

668,998

640,369

Total liabilities and net assets

9

TOKYO ELECTRON

Consolidated Statement of Income(Millions of yen)Three months ended
June 30, 2008

Three months ended
June 30, 2009

Net sales

154,827

68,915

Cost of sales

102,72957,715Gross profit

52,098

11,199Research and development expenses

14,562

12,166

Others

16,106

13,421

Total selling, general & administrative expenses

30,66825,58821,430(14,388)

Selling, general & administrative expenses

Operating income (loss)
Non-operating income
Interest income

403

281

Revenue from development grants

529

380

Others

310

211

1,242

873

Foreign currency translation loss
Others

211

398

197

108

Total non-operating expenses

409

506

22,263(14,021)

25

1

Total non-operating income
Non-operating expenses

Ordinary income (loss)
Unusual or infrequent profit
Gain on sale of fixed assets
Others1

Total unusual or infrequent profit

26

1

-

35

10

-

4,375

Unusual or infrequent loss
Loss on retirement or sale of fixed assets
Loss on impairment
Total unusual or infrequent loss

35

4,386

Income (loss) before income taxes

22,253(18,406)

Provision for income taxes and enterprise taxes

9,237(7,418)

Minority interests

163

48

Net income (loss)

12,853(11,035)

10

TOKYO ELECTRON

Consolidated Cash Flow

(Millions of yen)Three months ended Three months ended
June 30, 2008
June 30, 2009

Cash flow from operating activities
Income (loss) before income taxes
Depreciation and amortization
Loss on impairment
Increase in accrued pension and severance costs (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)
OthersSubtotal
Receipts from interest and dividends
Interest paid
Income taxes paid
Net cash generated by operating activities

22,253
5,110
732(9,913)(1,069)(451)
45,665(550)(8,996)
13,612(4,012)764(2,428)60,716536(28)(26,563)
34,660(18,406)
4,913
4,375
657
(2,566)(1,026)(297)
23,531
9,089(4,584)
10,315(8,626)(2,251)
15,124356(9)(1,099)14,372

8,969(6,300)(376)(2,783)
(144)
(635)

(3,665)(1,331)(93)(282)(5,372)(62)(9,841)(144)(10,047)

(126)
(715)
(159)
(1,002)

105
24,082
193,49267
217,642685
8,682
65,883

Cash flow from investing activities
Decrease in time deposits (increase)
Payment for purchase of tangible fixed assets
Payment for purchase of intangible fixed assets
Payment for purchase of investment securities
OthersNet cash used in investing activities

Cash flow from financing activities
Net increase in short-term borrowings (decrease)
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 from newly consolidated subsidiaries
Cash and cash equivalents at end of period

11

74,566

TOKYO ELECTRON

Segment Information
1. Business Segment Information(Millions of yen)Three months ended June 30, 2008
Industrial
Electronic
Equipment
Net sales
Operating income

130,175
20,765

Electronic
Components andComputer Networks
25,062656

Total

Eliminations
and Corporate

Consolidated

(410)
7

154,827
21,430155,237
21,422

Note: 1. Method of classifying businesses: Businesses are classified after considering similarities in type of product,function, or method of sale.
2. Major products in each business segment:(1) Industrial Electronic Equipment: Semiconductor Production Equipment, FPD Production Equipment,(2) Electronic Components and Computer Networks: Semiconductor Products, Computer Systems andNetworks, Middleware and Software, Other Electronic Components(Millions of yen)Three months ended June 30, 2009
Industrial
Electronic
Equipment
Net sales
Operating income (loss)

50,656(14,634)

Electronic
Components andComputer Networks
18,497
238

Total

Eliminations
and Corporate

Consolidated

(238)
7

68,915(14,388)

69,154(14,395)

Note: 1. Method of classifying businesses: Businesses are classified after considering similarities in type of product,function, or method of sale.
2. Major products in each business segment:(1) Industrial Electronic Equipment: Semiconductor Production Equipment, FPD Production Equipment,
Photovoltaic Cell Production Equipment, Others(2) Electronic Components and Computer Networks: Semiconductor Products, Other Electronic
Components, Computer Systems and Networks, and Software

2. Geographic Segment Information(Millions of yen)Japan
Net sales
Operating income

147,308
19,034Three months ended June 30, 2008
Eliminations
Other Regions
Total
and Corporate

32,6902,014

179,998
21,048(25,171)381

Consolidated

154,827
21,430Note: 1. National and regional categories are determined on the basis of geographic proximity.
2. Main countries and territories in other regions: U.S., Europe, Taiwan(Millions of yen)Japan
Net sales
Operating income (loss)

62,794(16,176)Three months ended June 30, 2009
Eliminations
Other Regions
Total
and Corporate

17,420721

80,215(15,454)(11,299)
1,066

Note: 1. National and regional categories are determined on the basis of geographic proximity.
2. Main countries and territories in other regions: U.S., Taiwan, Europe

12

Consolidated

68,915(14,388)

TOKYO ELECTRON

Segment Information
3. Overseas sales(Millions of yen)
TaiwanOverseas sales

31,249Three months ended June 30, 2008
Korea
U.S.
Others
21,187

18,91824,136

Consolidated net sales
Proportion of overseas
sales in consolidated net
sales (%)

Total
95,491
154,827

20.2

13.7

12.2

15.6

61.7

Note: 1. National and regional categories are determined on the basis of geographic proximity.
2. Main countries in others: Singapore, China, Israel
3. Overseas sales indicates net sales in countries and territories except Japan.
(Millions of yen)
TaiwanOverseas sales

12,437

Three months ended June 30, 2009
Korea
U.S.
Others
9,587

7,720

8,534

Consolidated net sales
Proportion of overseas
sales in consolidated net
sales (%)

Total
38,27968,915

18.0

13.9

11.2

Note: 1. National and regional categories are determined on the basis of geographic proximity.
2. Main countries in others: China, Israel, Singapore
3. Overseas sales indicates net sales in countries and territories except Japan.

13

12.4

55.5