TOKYO ELECTRON

Summary of Consolidated Financial Results for the Third Quarter Ended
December 31, 2022 (Japanese GAAP)
Name of Listed Company: Tokyo Electron Limited
Security Code:

8035

URL:

https://www.tel.com

February 9, 2023

Stock Exchange Listing: Tokyo

Representative:

Toshiki Kawai, Representative Director, President & CEO

Contact:

Akifumi Matsumura, Vice President of Accounting Dept.
Telephone: +81-3-5561-7000

Scheduled start date of dividends payment: Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly earnings release conference: Yes (for investors and analysts)
Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Nine months ended
December 31, 2021

December 31, 2022%

Net sales (Millions of yen)

1,438,988

49.9%
1,650,729

14.7

Operating income (Millions of yen)

430,691 104.8

464,936

8.0

Ordinary income (Millions of yen)

433,380 105.7

470,229

8.5

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

310,246

352,920

13.8

96.1

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

1,993.38

2,263.31

Diluted

1,983.22

2,254.03

Comprehensive income:Nine months ended December 31, 2022:

336,308 million yen, (5.6)%

Nine months ended December 31, 2021:

356,316 million yen, 89.5%(2) Consolidated Financial Position
As ofMarch 31, 2022

December 31, 2022

Total assets (Millions of yen)

1,894,457

2,092,760

Total net assets (Millions of yen)

1,347,048

1,434,398

70.5

68.0

Equity ratio (%)
Equity:1,422,134 million yen (as of December 31, 2022)
1,335,152 million yen (as of March 31, 2022)

2. Dividends
Year ending

Year ended
March 31, 2022

March 31, 2023

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

2Q-end dividends per share (Yen)

643.00857.003Q-end dividends per share (Yen)--

Year-end dividends per share (Yen)

760.00731.00 (Forecast)

Annual dividends per share (Yen)

1,403.00

1,588.00 (Forecast)

Note: Revision to the dividends forecast most recently announced: Yes
Year-end dividends of 731 yen for the year ending March 31, 2023 include 60th anniversary commemorative 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 the year ending March 31, 2023 indicate changes from the previous fiscal year.
Year ending
March 31, 2023%
Net sales (Millions of yen)

2,170,000

8.3

580,000(3.2)

Operating income (Millions of yen)
Ordinary income (Millions of yen)

584,000(2.9)

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

433,000(0.9)

Net income per share (Yen)

2,776.15

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 December 31, 2022:

157,210,911 shares

As of March 31, 2022:

157,210,911 shares

2. Number of shares of treasury stock
As of December 31, 2022:

1,120,645 shares

As of March 31, 2022:

1,461,581 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Nine months ended December 31, 2022:

155,931,429 shares

Nine months ended December 31, 2021:

155,638,190 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". (501,673 shares as of December 31, 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 6.
The Company plans to hold an online conference for investors and analysts on February 9, 2023.
Supplementary materials to be used at the conference will be posted on the Company's website.

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TOKYO ELECTRON

1. Qualitative Information on Financial Results for the Current Quarter(1) Description of Operating Results
The global economy during the first three quarters slowed due to persistent inflation of raw material, energy, andvarious goods in conjunction with heightened geopolitical risks, interest rate hikes, rapid exchange rate fluctuations
mainly in Europe and the United States, and the impact of the novel coronavirus infection on supply chains in someregions. 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 three quarters of the current
fiscal year were net sales of 1,650,729 million yen (year-on-year growth of 14.7%), operating income of 464,936 million
yen (year-on-year growth of 8.0%), ordinary income of 470,229 million yen (year-on-year growth of 8.5%), and net
income attributable to owners of parent of 352,920 million yen (year-on-year growth of 13.8%).

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. While capital investment in NAND flash
memory has remained at a high level due to increased multi-layering, in the latter half of the current fiscal year,
investment has been delayed in conjunction with inventory adjustments, as was the case with capital investment in
DRAM.
Consequently, net sales to external customers in this segment for the first three quarters of the current fiscal year
were 1,611,886 million yen (year-on-year growth of 15.6%).

(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 three quarters of the current fiscal year
were 38,734 million yen (year-on-year decrease of 12.6%).

(iii) Other
Net sales to external customers in this segment for the first three quarters of the current fiscal year were 108 million
yen (year-on-year growth of 8.3%).

3

TOKYO ELECTRON(For reference)
Consolidated Operating Results

䠄Millions of yen䠅

FY2023

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

1Q

2Q

3Q

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

467,831458,820
48,21658,46942,60475,406110,149
102,792
21,1798,975
35
114,771
116,90985,574

Total
1,650,729
1,611,886
180,786
234,100
150,120
244,868
340,795
365,477
95,737
38,734108464,936
470,229352,920

Note: Intersegment sales or transfers are eliminated.

(2) Description of Financial Conditions
Current assets at the end of the third quarter of the current fiscal year were 1,594,509 million yen, an increase of
185,806 million yen compared to the end of the previous fiscal year. This was largely due to an increase of 158,217
million yen in inventories, an increase of 98,181 million yen in cash and deposits, and a decrease of 81,999 million
yen in short-term investments included in securities.
Tangible fixed assets increased by 23,116 million yen from the end of the previous fiscal year, to 246,194 million yen.
Intangible fixed assets increased by 4,947 million yen from the end of the previous fiscal year, to 27,487 million yen.
Investments and other assets decreased by 15,567 million yen from the end of the previous fiscal year, to 224,567
million yen.
As a result, total assets increased by 198,302 million yen from the end of the previous fiscal year, to 2,092,760 million
yen.
Current liabilities increased by 108,406 million yen from the end of the previous fiscal year, to 576,985 million yen.
This was largely due to an increase of 171,542 million yen in customer advances, and a decrease of 53,234 million
yen in income taxes payable.
Long-term liabilities increased by 2,546 million yen from the end of the previous fiscal year, to 81,376 million yen.
Net assets increased by 87,349 million yen from the end of the previous fiscal year, to 1,434,398 million yen. This waslargely due to an increase of 352,920 million yen resulting from recording net income attributable to owners of parent,a decrease resulting from the payment of 252,988 million yen in year-end dividends for the previous fiscal year andinterim dividends for the current fiscal year, and a decrease of 27,328 million yen in net unrealized gains on investment
securities. As a result, the equity ratio was 68.0%.

4

TOKYO ELECTRON(3) Description of Cash Flows
Cash and cash equivalents at the end of the third quarter of the current fiscal year increased by 36,106 million yen
compared to the end of the previous fiscal year, to 371,754 million yen. The combined balance including 15,702 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 387,457 million yen, an increase of 16,182 million yen from the end of the previous
fiscal year. The overall situation regarding cash flows during the first three quarters of the current fiscal year was as
described below.
Cash flows from operating activities were positive 316,624 million yen, a decrease of 3,914 million yen compared tothe same period of the previous fiscal year. The major positive factors were 469,218 million yen in income before
income taxes, and a 170,960 million yen increase in customer advances. The major negative factors were 175,338
million yen in payment of income taxes, and a 154,382 million yen increase in inventories.
Cash flows from investing activities were negative 33,709 million yen compared to negative 39,925 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 44,527 million yen for the purchase of
tangible fixed assets.
Cash flows from financing activities were negative 255,963 million yen compared to negative 166,974 million yen in
the same period of the previous fiscal year. This was largely due to the payment of 252,988 million yen in dividends.

Consolidated Statements of Cash Flows (Summary)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Net decrease (increase) in notes and accounts receivable - trade,and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable
Other, net
Cash flows from investing activities
Decrease (increase) in time deposits and short-term investments
Other (Acquisition of fixed assets, and others)
Cash flows from 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 period
Cash and cash equivalents at end of period
Cash and cash equivalents, time deposits and short-term investmentswith maturities of more than three months

5

Nine months ended
December 31, 2021
320,539
428,568
26,453(Millions of yen)
Nine months ended
December 31, 2022
316,624469,218
30,881(48,605)(16,259)(71,485)
16,872(31,264)(39,925)
4,913(44,839)(166,974)
3,645
117,283
265,993383,277(154,382)(14,045)
1,211(33,709)
19,936(53,645)(255,963)
9,154
36,106335,648
371,754423,947

387,457

TOKYO ELECTRON(4) Description of Financial Estimates Information such as Consolidated Financial Forecasts
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, although net sales are expected to exceed theprevious forecasts due to factors such as the timing of equipment delivery and acceleration of investment schedulesof some customers. Under such circumstances, we would like to amend the consolidated financial forecasts for thefull year announced on November 10, 2022 as follows.

Consolidated Financial Forecasts for the Year Ending March 31, 2023
Revised forecast
Net Sales
2,170.0
8.3%
Semiconductor Production Equipment
2,118.0
9.0%
FPD Production Equipment
52.0(13.1)%
Operating Income
580.0(3.2)%
Ordinary Income
584.0(2.9)%Net Income Attributable to Owners of Parent
433.0(0.9)%
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(November 10,
2022)
2,100.0
2,046.0
54.0
546.0
549.0
400.0

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.

6

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2022

December 31, 2022

ASSETS
Current assets
Cash and deposits

274,274

372,456

Notes and accounts receivable - trade, and contract assets

433,948454,471

Securities

97,00015,001

Merchandise and finished goods

183,512

237,907

Work in process

144,330

168,686

Raw materials and supplies

146,002

225,469

Others129,796

120,657

Allowance for doubtful accounts

(160)

(139)

1,408,703

1,594,509

223,078

246,194

Others22,54027,487

Total intangible fixed assets

22,54027,487

241,434

225,903(1,298)(1,335)

240,135

224,567

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

7

485,754498,250

1,894,457

2,092,760

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2022

December 31, 2022

LIABILITIESCurrent liabilities
Trade notes and accounts payable

120,908

112,493

Income taxes payable

107,193

53,958Customer advances

102,555

274,097

Accrued warranty expenses

26,56832,764

Accrued employees’ bonuses

44,871

23,145

Other allowances

5,353

2,826

Others61,12977,698

Total current liabilities

468,578

576,985

Other allowances

6,402

3,194

Net defined benefit liabilities

62,53362,012Long-term liabilities

Others

9,894

16,169Total long-term liabilities

78,82981,376547,408

658,361

Common stock

54,961

54,961

Capital surplus

78,01178,011

Total liabilities
NET ASSETS
Shareholders' equity

Retained earnings

1,104,983

1,203,698

Treasury stock, at cost

(27,418)(22,539)

Total shareholders' equity

1,210,537

1,314,131

93,492

66,163(52)

27

30,64041,581

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

231

Total accumulated other comprehensive income (loss)

124,615

108,003

11,895

12,264

1,347,048

1,434,398

1,894,457

2,092,760

Share subscription rights
Total net assets
Total liabilities and net assets

8

TOKYO ELECTRON

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

Nine months ended

December 31, 2021

December 31, 2022

1,438,988

1,650,729

Cost of sales

783,108

918,010Gross profit

655,880

732,718

Research and development expenses

114,096

137,427

Others111,092

130,353

Total selling, general and administrative expenses

225,188

267,781430,691

464,936

Share of profit of associates accounted for using the equity method

1,304

1,995

Others

3,649

5,049

Total non-operating income

4,954

7,045

1,581

759

684

993

2,265

1,753

433,380

470,229

Gain on sales of fixed assets

5

4

Total unusual or infrequent profit

5

4

240

576

-

438

Net sales

Selling, general & administrative expenses

Operating income
Non-operating income

Non-operating expenses
Foreign exchange loss
OthersTotal non-operating expenses
Ordinary income
Unusual or infrequent profit

Unusual or infrequent loss
Loss on disposal and sales of fixed assets
Loss on impairment of fixed assets, goodwill and other assets
Additional payment of value-added tax

4,577

Total unusual or infrequent loss

4,817

1,015

Income before income taxes

428,568

469,218

Income taxes

118,322

116,297

Net income

310,246

352,920

Net income attributable to owners of parent

310,246

352,920

9-

TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

310,246

352,920

Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities

38,109(27,335)

Foreign currency translation adjustments

7,331

10,803Remeasurements of defined benefit plans

542

(292)

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

86

212

46,069(16,612)356,316

336,308356,316

336,308

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

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

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TOKYO ELECTRON

Segment information
1. 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.
2. Net sales and profit or loss in reportable segments
Nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)(Millions of yen)

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

FPD Production
Equipment

Others (Note 1)

Total

1,611,886

38,73425,811

1,676,432

521,712

1,056

872

523,641

Adjustments (Note 2) Consolidated (Note 3)

Net sales(25,702)1,650,729

Segment profit (loss)(54,423)

469,218

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 (54,423) million yen mainly consists of research and development costs of (22,034)
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.
3. 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: None

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TOKYO ELECTRON

Significant subsequent events
Stock split and corresponding partial amendment to the Articles of Incorporation
The Company announced that on February 9, 2023, its Board of Directors has resolved to implement a stock split, corresponding partial
amendment to the Articles of Incorporation, as below.
1. Purpose of stock split
By implementing the stock split to lower the minimum investment, the Company intends to make shares more affordable for investors,
with a view to expanding the investor base.
The Company recognizes that transitioning to a share price per unit within the ideal range recommended by the Tokyo Stock Exchange(between 50,000 yen and 500,000 yen) would be useful in terms of encouraging market participation by individual investors. Goingforward, the Company will continue to comprehensively consider future stock market trends, the price and liquidity of the Company
shares, and changes to the shareholder structure.
2. Overview of stock split(1) Split Method
The Company will split the shares of common stock owned by shareholders recorded in the final register of shareholders as ofMarch 31, 2023, in the proportion of 1 share into 3 shares.
(2) Number of shares increased through stock split
Total number of issued shares before stock split:

157,210,911 shares

Number of shares increased through stock split:

314,421,822 shares

Total number of issued shares after stock split:

471,632,733 shares

Total number of authorized shares after stock split:

900,000,000 shares(3) Schedule of stock split
Date of public notice of record date:

March 16, 2023

Record date:

March 31, 2023

Effective date:

April 1, 2023

(4) Effect on per share information
Per share information assuming that the stock split was implemented at the beginning of the previous fiscal year is as follows.
(yen)Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

Net income per share of common stock - Basic

664.46754.44

Net income per share of common stock - Diluted

661.07751.34

3. Partial amendment to the Articles of Incorporation(1) Reason for amendment
In accordance with the provisions of the Article 184, Paragraph 2 of the Companies Act, the Company will change the total number ofauthorized shares stipulated in Article 6 of the Articles of Incorporation as of April 1, 2023, in response to the implementation of the stock split.
(2) Details of amendment
The details of amendment are as follows.
(Amended parts are underlined)
Current Articles of Incorporation

Amended Articles of Incorporation

Article 6 Total Number of Authorized Shares

Article 6 Total Number of Authorized Shares

The total number of shares the Company is authorized toissue shall be three hundred million (300,000,000) shares.

The total number of shares the Company is authorized toissue shall be nine hundred million (900,000,000) shares.

(3) Schedule of amendment
Effective date of amendment of the Articles of Incorporation:

April 1, 2023

4. OtherDividends
As the effective date of the stock split is April 1, 2023, year-end dividends for the fiscal year ending March 2023, to all shareholders with a record
date of March 31,2023, will be implemented based on the number of shares issued prior to the stock split.

13