TOKYO ELECTRON

Summary of Consolidated Financial Results for the Second Quarter Ended
September 30, 2022 (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.
Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: December 7, 2022
Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly earnings release conference: Yes (for investors and analysts)

November 10, 2022

Stock Exchange Listing: Tokyo

Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Six Months Ended September 30, 2022 (April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Six months ended
September 30, 2021

September 30, 2022%%

Net sales (Millions of yen)

932,51439.6

1,182,897

26.9

Operating income (Millions of yen)

274,64786.3

350,165

27.5

Ordinary income (Millions of yen)

277,76287.4

353,31927.2

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

200,21978.7

267,346

33.5

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

1,286.74

1,715.27

1,279.96

1,707.84

Six months ended September 30, 2022:

259,972 million yen, 15.8%

Six months ended September 30, 2021:

224,552 million yen, 81.5%(2) Consolidated Financial Position
As ofMarch 31, 2022

September 30, 2022

Total assets (Millions of yen)

1,894,457

2,138,073

Total net assets (Millions of yen)

1,347,048

1,492,192

70.5

69.2

Equity ratio (%)
Equity:1,479,333 million yen (as of September 30, 2022)
1,335,152 million yen (as of March 31, 2022)

2. Dividends
Year ended

Year ending

March 31, 2022

March 31, 2023

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

2Q-end dividends per share (Yen)

643.00857.00--Year-end dividends per share (Yen)

760.00625.00 (Forecast)

Annual dividends per share (Yen)

1,403.00

1,482.00 (Forecast)

3Q-end dividends per share (Yen)

Note: Revision to the dividends forecast most recently announced: Yes
Year-end dividends for year ending March 31, 2023 are made up of ordinary dividends of 425 yen and 60th anniversarycommemorative dividends of 200 yen.
1

TOKYO ELECTRON

3. Consolidated Financial Forecasts for the Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
Note: Percentages for year ending March 31, 2023 indicate changes from the previous fiscal year.
Year ending
March 31, 2023%
Net sales (Millions of yen)

2,100,000

4.8

Operating income (Millions of yen)

546,000(8.9)

Ordinary income (Millions of yen)

549,000(8.8)

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

400,000(8.5)

Net income per share (Yen)2,564.93

Note: Revision to the financial forecasts most recently announced: Yes
Notes(1) 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 11 for further information.
(3) Changes in accounting policies, changes in accounting estimates and restatements
1. Changes in accounting policies along with changes in accounting standards: None
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None
(4) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of September 30, 2022:

157,210,911 shares

As of March 31, 2022:

157,210,911 shares

2. Number of shares of treasury stock
As of September 30, 2022:

1,173,271 shares

As of March 31, 2022:

1,461,581 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Six months ended September 30, 2022:

155,862,311 shares

Six months ended September 30, 2021:

155,602,587 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". (503,034 shares as of September 30, 2022, 610,529 shares as of March 31, 2022)
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 10, 2022.
Supplementary materials to be used at the conference will be posted on the Company's website.

2

TOKYO ELECTRON

1. Qualitative Information on Financial Results for the Current Quarter(1) Description of Operating Results
The global economy during the first half slowed as persistent inflation driven by raw material and energy cost increased
due to heightened geopolitical risks, policy interest rate hikes and rapid exchange rate fluctuations, mainly in Europe
and the United States, and the impact of the novel coronavirus infection on supply chains in some regions. The
company continues to closely monitor and assess the impact of these global economic and geopolitical headwinds.
Meanwhile, in the electronics industry, where the Tokyo Electron (TEL) Group operates, the semiconductor production
equipment market is expected to grow in the medium to long-term as the importance of semiconductors is increasing
against the backdrop of the transition to a data society accompanying the expansion of information and communication
technology and efforts toward realizing a decarbonized society.
Under these circumstances, the consolidated financial results (cumulative) for the first half of the current fiscal year
were net sales of 1,182,897 million yen (year-on-year growth of 26.9%), operating income of 350,165 million yen(year-on-year growth of 27.5%), ordinary income of 353,319 million yen (year-on-year growth of 27.2%), and net
income attributable to owners of parent of 267,346 million yen (year-on-year growth of 33.5%).

The overview of each business segment is as described below.

(i) Semiconductor Production Equipment
Capital investment in semiconductors for logic/foundry has been made in a wide range of areas, from cutting-edge tomature generations of semiconductors, driven by the digitalization of society. Capital investment in DRAM has beenrevised in conjunction with inventory adjustments, but capital investment in NAND flash memory has remained at ahigh level due to increased multi-layering.
Consequently, net sales to external customers in this segment for the first half of the current fiscal year were 1,153,065
million yen (year-on-year growth of 27.3%).

(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 29,759
million yen (year-on-year growth of 11.5%).

(iii) Other
Net sales to external customers in this segment for the first half of the current fiscal year were 73 million yen (yearon-year growth of 7.3%).

3

TOKYO ELECTRON䠅(For reference䠅Consolidated Operating Results

䠄Millions of yen䠅
FY2022
1H

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

FY20222H

932,514 1,071,291
905,763 1,038,080
108,827
120,075
105,808
162,257
33,721
74,232
188,812
188,955
165,401
193,824
262,509
251,020
40,68347,714
26,68233,14768
63
274,647
324,623
277,762
323,962
200,219
236,856

FY2023
1H

1Q

2Q

1,182,897
1,153,065
132,569
175,630
107,516
169,461
230,645
262,685
74,55729,75973
350,165
353,319
267,346

473,654464,003
42,022
67,32556,52685,172
96,816
94,08622,0559,614
36
117,519
117,692
88,095709,243
689,061
90,546108,305
50,99084,289133,829
168,598
52,502
20,14436
232,646
235,627
179,251

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 1,639,871 million yen, an increase of
231,168 million yen compared to the end of the previous fiscal year. This was mainly due to an increase of 180,415
million yen in cash and deposits, an increase of 79,138 million yen in inventories, an increase of 73,803 million yen innotes and accounts receivable - trade, and contract assets, a decrease of 66,999 million yen in short-term investments
included in securities, and a decrease of 44,795 million yen in prepaid consumption tax.
Tangible fixed assets increased by 23,103 million yen from the end of the previous fiscal year, to 246,181 million yen.
Intangible fixed assets increased by 3,817 million yen from the end of the previous fiscal year, to 26,357 million yen.
Investments and other assets decreased by 14,473 million yen from the end of the previous fiscal year, to 225,662
million yen.
As a result, total assets increased by 243,616 million yen from the end of the previous fiscal year, to 2,138,073 million
yen.
Current liabilities increased by 94,224 million yen from the end of the previous fiscal year, to 562,803 million yen. This
was largely due to an increase of 85,795 million yen in customer advances, and a decrease of 15,263 million yen inincome taxes payable.
Long-term liabilities increased by 4,248 million yen from the end of the previous fiscal year, to 83,077 million yen.
Net assets increased by 145,144 million yen from the end of the previous fiscal year, to 1,492,192 million yen. This
was largely due to an increase of 267,346 million yen resulting from recording net income attributable to owners ofparent and a decrease resulting from the payment of 118,833 million yen in year-end dividends for the previous fiscal
year. As a result, the equity ratio was 69.2%.
(3) Description of Cash Flows
Cash and cash equivalents at the end of the second quarter of the current fiscal year increased by 118,955 million
yen compared to the end of the previous fiscal year, to 454,603 million yen. The combined balance including 30,087
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 484,690 million yen, an increase of 113,416 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.

4

TOKYO ELECTRON

Cash flows from operating activities were positive 263,391 million yen, an increase of 57,476 million yen compared tothe same period of the previous fiscal year. The major positive factors were 352,916 million yen in income before
income taxes, and a 84,840 million yen increase in customer advances. The major negative factors were 109,303
million yen in payment of income taxes and a 69,215 million yen increase in inventories.
Cash flows from investing activities were negative 34,210 million yen compared to negative 25,785 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 32,792 million yen for the purchase of
tangible fixed assets.
Cash flows from financing activities were negative 121,269 million yen compared to negative 66,190 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 118,833 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 have exceeded previous forecasts, with operating income, ordinary
income, and net income attributable to owners of parent, each of which ultimately reach their all-time highs.
With respect to the future business environment, we see a trend among semiconductor manufacturers to postpone or
restrain capital investments due to growing concerns about a macro-economic slowdown and geopolitical risks.
Under such circumstances, net sales are now expected to be lower than the previous forecasts, and we would like toamend the consolidated results forecasts for the full year announced on May 12, 2022, as follows.

Consolidated Operating Results (Cumulative) for the First Half of the Year Ending March 31, 2023
Results for FY2023 1H
Net Sales
1,182.8
26.9%
Semiconductor Production Equipment
1,153.0
27.3%
FPD Production Equipment
29.7
11.5%
Operating Income
350.1
27.5%
Ordinary Income
353.3
27.2%
Net Income Attributable to Owners of Parent
267.3
33.5%
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(May 12, 2022)
1,100.0
1,070.0
30.0
319.0
319.0
234.0

Consolidated Financial Forecast for the Year Ending March 31, 2023
Revised forecast
Net Sales
2,100.0
4.8%
Semiconductor Production Equipment
2,046.0
5.3%
FPD Production Equipment
54.0(9.7)%
Operating Income
546.0(8.9)%
Ordinary Income
549.0(8.8)%Net Income Attributable to Owners of Parent
400.0(8.5)%
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(May 12, 2022)
2,350.0
2,295.0
55.0
716.0
716.0
523.0

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.
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.

5

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2022

September 30, 2022

ASSETS
Current assets
Cash and deposits

274,274454,689

Notes and accounts receivable - trade, and contract assets

433,948507,751

Securities

97,00030,001

Merchandise and finished goods

183,512204,451

Work in process

144,330

159,207

Raw materials and supplies

146,002

189,324

Others129,796

94,623

Allowance for doubtful accounts

(160)

(177)

1,408,703

1,639,871

223,078

246,181

Others22,54026,357

Total intangible fixed assets

22,54026,357

241,434

227,036(1,298)(1,373)

240,135

225,662

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

6

485,754498,202

1,894,457

2,138,073

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2022

September 30, 2022

LIABILITIESCurrent liabilities
Trade notes and accounts payable

120,908

125,888

Income taxes payable

107,193

91,929Customer advances

102,555

188,351

Accrued employees’ bonuses

44,871

41,643

Accrued warranty expenses

26,56835,644

Other allowances

5,353

2,458

Others61,12976,887

Total current liabilities

468,578

562,803

Other allowances

6,402

3,172

Net defined benefit liabilities

62,53362,935

Others

9,894

16,969Total long-term liabilities

78,82983,077547,408

645,881

Common stock

54,961

54,961

Capital surplus

78,01178,011Long-term liabilities

Total liabilities
NET ASSETS
Shareholders' equity

Retained earnings

1,104,983

1,252,548

Treasury stock, at cost

(27,418)(23,428)

Total shareholders' equity

1,210,537

1,362,091

93,492

65,178(52)(10)

30,64051,735

Accumulated other comprehensive income
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments
Foreign currency translation adjustments
Accumulated remeasurements of defined benefit plans

535

339

Total accumulated other comprehensive income (loss)

124,615

117,242

11,895

12,8591,347,048

1,492,192

1,894,457

2,138,073

Share subscription rights
Total net assets
Total liabilities and net assets

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TOKYO ELECTRON

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

Six months ended

September 30, 2021

September 30, 2022

Net sales

932,5141,182,897

Cost of sales

509,639

654,081

Gross profit

422,874

528,816

Research and development expenses

75,54791,313

Others72,67987,337

Selling, general & administrative expenses

Total selling, general and administrative expenses

148,226

178,651274,647

350,165

Dividend income

918

1,152

Share of profit of associates accounted for using the equity method

867

1,212

Revenue from grants

240

1,060

Others

1,595

1,769

Total non-operating income

3,621

5,195

153

1,293

Operating income
Non-operating income

Non-operating expenses
Foreign exchange loss
Others353

748

Total non-operating expenses

506

2,041

277,762

353,319

Gain on sales of fixed assets

3

2

Total unusual or infrequent profit

3

2

Ordinary income
Unusual or infrequent profit

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

137

405

Additional payment of value-added tax

4,577

-

Total unusual or infrequent loss

4,714

405

273,050

352,916

Income before income taxes
Income taxes

72,83085,570Net income

200,219

267,346

Net income attributable to owners of parent

200,219

267,346

8

TOKYO ELECTRON

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

Six months ended

September 30, 2021

September 30, 2022

200,219

267,346

Net unrealized gains (losses) on investment securities

22,650(28,307)

Foreign currency translation adjustments

1,205

20,804Remeasurements of defined benefit plans

414

(187)

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

62

316

24,332(7,373)

224,552

259,972

224,552

259,972

Net income
Other comprehensive income (loss)

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

9

TOKYO ELECTRON

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

Six months ended

September 30, 2021

September 30, 2022

Income before income taxes

273,050

352,916

Depreciation and amortization

16,792

19,622

103

107

Increase (decrease) in accrued employees' bonuses

1,785(4,374)

Increase (decrease) in accrued warranty expenses

Cash flows from operating activities

Amortization of goodwill

3,358

8,864

Decrease (increase) in notes and accounts receivable - trade,and contract assets(71,745)(64,681)

Decrease (increase) in inventories(27,585)(69,215)

Increase (decrease) in trade notes and accounts payable

1,381(3,610)Decrease (increase) in prepaid consumption tax

31,24744,856

Increase (decrease) in customer advances

22,871

84,840

Others

2,871

1,514

Subtotal

254,130

370,840

1,522

1,854

Income taxes paid or refund (paid)(49,738)(109,303)

Net cash provided by operating activities

205,914

263,391481

581

Receipts from interest and dividends

Cash flows from investing activities
Decrease (increase) in time deposits
Decrease (increase) in short-term investments

5,014

5,000

Payment for purchase of fixed assets(25,645)(32,792)

Payment for acquisition of intangible assets(4,977)(5,175)

OthersNet cash used in investing activities(658)(1,823)(25,785)(34,210)(8)(1,708)(65,746)(118,833)

(436)

(727)

(66,190)(121,269)

Cash flows from financing activities
Payment for purchase of treasury stock
Dividends paid
OthersNet cash used in financing activities

432

11,043

Net increase (decrease) in cash and cash equivalents

114,370

118,955

Cash and cash equivalents at beginning of period

265,993335,648

Cash and cash equivalents at end of period

380,364454,603

Effect of exchange rate changes on cash and cash equivalents

10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: None

11

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 related to 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 related to them.
(ii) Net sales and profit or loss in reportable segments
Six months ended September 30, 2022 (April 1, 2022 to September 30, 2022)(Millions of yen)

Reportable Segments
Semiconductor
Production
Equipment
Net sales
Segment profit (loss)

FPD Production
Equipment

Others *1

Total

1,153,065

29,75917,1691,199,994

386,160

1,390

504

388,055

Adjustments *2

Consolidated *3

Net sales(17,096)

1,182,897

Segment profit (loss)(35,139)

352,916

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 (35,139) million yen mainly consists of research and development costs of (14,435)
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) 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: None12