TOKYO ELECTRON

Summary of Consolidated Financial Results for the Year Ended
March 31, 2020 (Japanese GAAP)

April 30, 2020

Name of Listed Company:
Security Code:
URL:
Representative:
Contact:

Tokyo Electron Limited
8035
https://www.tel.com
Toshiki Kawai, Representative Director, President & CEO
Ken Sasagawa, Vice President of Accounting Dept.
Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: June 2, 2020
Preparation of supplementary materials for the financial results: Yes
Earnings release conference: Yes (for investors and analysts)

Stock Exchange Listing: Tokyo

Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2019

March 31, 2020%%

1,278,240

13.0

1,127,286 (11.8)

Operating income (Millions of yen)

310,571

10.5

237,292 (23.6)

Ordinary income (Millions of yen)

321,66214.6

244,979 (23.8)

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

248,22821.5

185,206 (25.4)

Net sales (Millions of yen)

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

1,513.58

1,170.57

Diluted

1,507.22

1,164.02

Return on equity (%)

30.1

21.8

Ordinary income to total assets (%)

26.1

19.3

24.3

21.0

Operating income to net sales (%)
Comprehensive income:Year ended March 31, 2020:

187,084 million yen, (22.9)%

Year ended March 31, 2019:242,696 million yen, 17.7%

Profit (loss) on equity method: Year ended March 31, 2020:

794 million yen

Year ended March 31, 2019:

817 million yen(2) Consolidated Financial Position
As ofMarch 31, 2019
Total assets (Millions of yen)
Total net assets (Millions of yen)

1,278,495

888,117829,692

70.0

64.1

5,371.78

5,267.96

Equity ratio (%)
Net assets per share (Yen)
Equity:March 31, 2020

1,257,627

819,301 million yen (as of March 31, 2020)
880,748 million yen (as of March 31, 2019)(3) Consolidated Cash Flows
Year ended
March 31, 2019

March 31, 2020

Cash flows from operating activities

189,572

Cash flows from investing activities(84,033)

15,951

Cash flows from financing activities(129,761)(250,374)

Cash and cash equivalents at end of period

232,634

247,9591

253,117

TOKYO ELECTRON

2. Dividends
Year ended
March 31, 2019

March 31, 2020

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

2Q-end dividends per share (Yen)

413.00246.003Q-end dividends per share (Yen)--

Year-end dividends per share (Yen)

345.00342.00

Annual dividends per share (Yen)758.00588.00Total dividends (Millions of yen)

124,458

92,213

Payout ratio (%)

50.1

50.2

Dividend on equity (%)

15.1

11.1

Note: The year-end dividends per share for the year ended March 31, 2020 shown above are forecast. Please refer to the press
Note: release "Announcement on Dividends Forecast Revision for the Fiscal Year Ended March 31, 2020" published today.
The dividend forecast for the next fiscal year (the year ending March 31, 2021) will be released when it is possible to issue
the consolidated financial forecast.
3. Financial Forecasts for the Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)
The consolidated financial forecast for the next fiscal year (the year ending March 31, 2021) will be issued as soon as it becomes
possible to estimate the forecast reasonably considering the impact of the novel coronavirus (COVID-19) on the macro economy.

Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates and restatements
1. Changes in accounting policies along with changes in accounting standards: Yes
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None
Please refer to "Notes" on page 15 for further information.
(3) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of March 31, 2020 :

157,210,911 shares

As of March 31, 2019 :

165,210,911 shares

2. Number of shares of treasury stock
As of March 31, 2020:

1,685,556 shares

As of March 31, 2019:

1,252,517 shares

3. Average number of shares outstanding
Year ended March 31, 2020:

158,219,782 sharesYear ended March 31, 2019:

164,000,466 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". (472,030 shares as of March 31, 2020, 249,701 shares as ofMarch 31, 2019)
In addition, these Company’s shares are included in the treasury stock which is deducted in calculating the average number of shares.

2

TOKYO ELECTRON(Reference) Non-consolidated Financial Results for the Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Operating results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2019

March 31, 2020%

Net sales (Millions of yen)%

1,158,480

10.0

Operating income (Millions of yen)

146,26919.1

1,029,433

101,737 (30.4)(11.1)

Ordinary income (Millions of yen)352,693

174.4

209,769 (40.5)

Net income (Millions of yen)

312,750

242.3

177,514 (43.2)

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

1,907.01

1,121.95

Diluted

1,898.99

1,115.68(2) Financial position
As ofMarch 31, 2019

March 31, 2020

Total assets (Millions of yen)

978,113

1,005,178

Total net assets (Millions of yen)

540,384

479,859

Equity ratio (%)
Net assets per share (Yen)
Equity:

54.5

46.7

3,250.92

3,018.59

469,467 million yen (as of March 31, 2020)
533,015 million yen (as of March 31, 2019)* Status of implementation of audit proceduresThis Summary of Consolidated Financial Results is outside the scope of external auditor's audit 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. The Company plans to hold an online conference for investors and analysts on
April 30, 2020. Supplementary materials to be used at the conference will be posted on the Company's website.

3

TOKYO ELECTRON

1. Overview of Operating Results and Consolidated Financial Conditions(1) Overview of Operating Results(i) Business Environment during the Fiscal Year Ended March 31, 2020
During the fiscal year under review, the global economy, particularly in the U.S., was generally robust. However, the future is becoming
increasingly uncertain due to the spread of the novel coronavirus (COVID-19).
In the electronics industry, where the Tokyo Electron (TEL) Group operates, investment in memory for data centers is beginning torecover, and demand for high-performance processors in anticipation of the full-scale popularization of smartphones compliant with
the next-generation communication standard (5G), is increasing, the market for semiconductor production equipment has returned toa growth trajectory. Although it will be necessary to continue to monitor the impact of COVID-19, the market for semiconductor
production equipment is expected to continue to grow.

(ii) Overview of Profit and Loss during the Fiscal Year Ended March 31, 2020
In this environment, the consolidated business results for the fiscal year under review are as follows.
Net sales for the fiscal year decreased 11.8% from the previous fiscal year to 1,127,286 million yen. Domestic net sales decreased
22.5% from the previous year to 161,812 million yen, while overseas net sales decreased 9.7% to 965,474 million yen to account for
85.6% of net sales.
Cost of sales decreased 10.2% to 675,344 million yen and gross profit decreased 14.1% to 451,941 million yen. As a result, the grossprofit margin declined by 1.1 points to 40.1%.
Selling, general and administrative (SG&A) expenses decreased 0.4% to 214,649 million yen, while the ratio to consolidated net sales
expanded by 2.2 points to 19.1%.
As a result, operating income decreased 23.6% to 237,292 million yen and operating profit ratio decreased 3.3 points to 21.0%. After
netting of non-operating income of 8,452 million yen and non-operating expenses of 765 million yen, ordinary income decreased
23.8% to 244,979 million yen.
Income before income taxes was 244,626 million yen (year-on-year decrease of 23.9%) and net income attributable to owners ofparent was 185,206 million yen (year-on-year decrease of 25.4%).
As a result, net income per share was 1,170.57 yen compared to net income per share of 1,513.58 yen in the previous fiscal year.

4

TOKYO ELECTRON(iii) Overview of Operations by Business Segment during the Fiscal Year Ended March 31, 2020
The overview of each business segment is as described below.

Semiconductor Production Equipment
Capital investment in semiconductors for logic/foundries was active and solid with the transition to the latest generation. The
semiconductor production equipment market was also robust as NAND flash memory and DRAM began to recover after a temporary
adjustment phase, with their supply-demand balance showing improvement in the second half of the fiscal year. Consequently, net
sales to external customers in this segment during the fiscal year under review were 1,060,997 million yen (year-on-year decrease of
9.1%).

Flat Panel Display (FPD) Production Equipment
Although capital investment in large-sized LCD panels for televisions continued, capital investment in small to medium-sized OLED
panels for mobile devices has been in a temporary adjustment phase with some adjustments in investment. However, we expect it totrend towards recovery. Consequently, net sales to external customers in this segment during the fiscal year under review were 66,092
million yen (year-on-year decrease of 40.6%).

Other
Net sales to external customers in this segment during the fiscal year under review totaled 197 million yen (year-on-year decrease of0.3%).

(For reference）
Consolidated Operating Results（Millions of yen）
Year ended March 31, 2020

Year ended
March 31, 2019
Net Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia
FPD Production Equipment
Other
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent

1Q

2Q

First
Half

3Q

4Q

SecondHalf

Full Year

1,278,240

216,421292,021508,442

295,453

323,390

618,843

1,127,286

1,166,781
206,035
131,931
93,113
305,422
162,922206,91460,440111,261197
310,571
321,662
248,228

198,137
32,53428,55020,27036,903
48,33327,0904,454
18,22954
42,552
44,591
31,894

271,866
41,02458,893
14,43936,41848,71356,834
15,542
20,101
53
59,901
62,10046,828470,004
73,55987,44434,70973,321
97,046
83,92519,99738,330108
102,454
106,692
78,722282,027
35,94461,033
10,86331,06676,22859,112
7,778
13,38045
64,71064,95349,329308,964
49,63757,294
13,32647,18983,12750,6297,761
14,381
43
70,12873,334
57,154590,992
85,582
118,327
24,19078,255
159,355
109,741
15,53927,761
88
134,838
138,287
106,484

1,060,997
159,141
205,772
58,899151,577
256,401
193,667
35,53766,092
197
237,292
244,979
185,206

Note: Intersegment sales or transfers are eliminated.

5

TOKYO ELECTRON(2) Overview of Consolidated Financial Conditions(i) Financial Conditions
Current assets at the end of the current fiscal year were 962,484 million yen, a decrease of 20,412 million yen compared to the endof the previous fiscal year. This was mainly due to a decrease of 27,728 million yen in cash and deposits, a decrease of 26,500 million
yen in short-term investments included in securities, and an increase of 37,845 million yen in inventories.
Tangible fixed assets increased by 25,510 million yen from the end of the previous fiscal year, to 175,580 million yen.
Intangible fixed assets increased by 1,867 million yen from the end of the previous fiscal year, to 10,921 million yen.
Investments and other assets increased by 13,902 million yen from the end of the previous fiscal year, to 129,509 million yen.
As a result, total assets increased by 20,867 million yen from the end of the previous fiscal year, to 1,278,495 million yen.
Current liabilities increased by 77,696 million yen from the end of the previous fiscal year, to 382,578 million yen. This was largely due
to an increase of 58,078 million yen in customer advances and an increase of 20,489 million yen in trade notes and accounts payable.
Long-term liabilities increased by 1,596 million yen from the end of the previous fiscal year, to 66,224 million yen.
Net assets decreased by 58,424 million yen from the end of the previous fiscal year, to 829,692 million yen. This was largely due to adecrease of 154,096 million yen resulting from the purchase of treasury stock, a decrease resulting from the payment of 95,513 million
yen in year-end dividends for the previous fiscal year and an interim dividend for the current fiscal year, and an increase of 185,206
million yen in net income attributable to owners of parent. As a result, the equity ratio was 64.1%.

(ii) Cash Flows
Cash and cash equivalents at the end of the current fiscal year increased by 15,324 million yen compared to the end of the previous
fiscal year, to 247,959 million yen. The combined balance including 90,447 million yen in time deposits and short-term investmentswith maturities of more than three months that are not included in cash and cash equivalents was 338,406 million yen, a decrease of
54,228 million yen from the end of the previous fiscal year. The overall situation regarding cash flows for the fiscal year was as
described below.
Cash flows from operating activities were positive 253,117 million yen, an increase of 63,545 million yen compared to the same periodof the previous fiscal year. The major positive factors were 244,626 million yen in income before income taxes, a 58,630 million yen
increase in customer advances, and 29,107 million yen in depreciation and amortization. The major negative factors were a 44,065
million yen increase in inventories, and 41,888 million yen in payment of income taxes.
Cash flows from investing activities were positive 15,951 million yen compared to negative 84,033 million yen in the same period of
the previous fiscal year. This was largely due to an inflow of 80,000 million yen from a decrease in short-term investments, the paymentof 49,369 million yen for the purchase of fixed assets, and payment of 10,449 million yen into time deposits.
Cash flows from financing activities were negative 250,374 million yen compared to negative 129,761 million yen in the same periodof the previous fiscal year. This was largely due to the payment of 154,096 million yen for the purchase of treasury stock and thepayment of 95,513 million yen in dividends.

6

TOKYO ELECTRON(3) Future Forecast
The consolidated financial forecast for the next fiscal year (the year ending March 31, 2021) will be issued as soon as it becomes
possible to estimate the forecast reasonably considering the impact of the novel coronavirus (COVID-19) on the macro economy.

(4) Basic Policy on Profit Allocation and Payment of Dividends for the Current and Next Fiscal YearsTEL utilizes capital reserves to raise corporate value through earnings growth and provide returns directly to shareholders byconcentrating investment in high-growth areas and linking dividend payments to business performance.
Basic policy concerning shareholder return is as follows.

Shareholder Return Policy• Our dividend policy is to link dividend payments to business performance on an ongoing basis and a payout ratio is around
50% based on net income attributable to owners of parent, with the conditions that an annual dividend per share is not less than
150 yen.
Note: A dividend policy review is required if TEL does not generate net income for two consecutive fiscal years.
• TEL will flexibly consider share buybacks.

The year-end dividend for the current fiscal year (the year ended March 31, 2020) is scheduled to be 342 yen per share. The
dividend for the full year will be 588 yen per share, which includes the interim dividend of 246 yen per share.
The dividend forecast for the next fiscal year (the year ending March 31, 2021) will be released when it is possible to issue theconsolidated financial forecast.

Current fiscal year
(ended March 31, 2020)

2Q-endDividend per share
Year-end

Total

246 yen342 yen

588 yen

2. Basic philosophy on the selection of accounting standards
The consolidated financial statements of TEL group have been prepared in conformity with accounting principles generally acceptedin Japan. In regard to the application of IFRS, we will pay close attention to domestic and international implementation adoption trends
and respond accordingly.

7

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2019

March 31, 2020

ASSETS
Current assets
Cash and deposits

177,634

149,906

Trade notes and accounts receivable

146,971

150,134

Securities

215,000

188,500

Merchandise and finished goods

234,102267,625

Work in process

62,78569,514

Raw materials and supplies

57,331

54,924

Prepaid consumption tax

49,617

69,034

Others39,53812,949Allowance for doubtful accounts
Total current assets

(84)

(105)

982,897

962,484

Long-term assets
Tangible fixed assets
Buildings and structures

169,682

179,379

Accumulated depreciation(103,692)(107,139)

Buildings and structures, net

65,99072,239Machinery and carriers

122,206

138,555

Accumulated depreciation(91,846)(102,844)

Machinery and carriers, net

30,35935,710Land

26,84926,298Construction in progress

19,64329,413

Others31,62339,089(24,397)(27,172)

Accumulated depreciation
Others, net

7,225

11,917150,069

175,580

Others

9,054

10,921

Total intangible fixed assets

9,054

10,921

Investment securities

27,85338,374

Deferred tax assets

63,92564,729Net defined benefit assets

3,065

5,837

Others

22,18921,980Allowance for doubtful accounts(1,426)(1,413)

115,607

129,509274,730

316,011

1,257,627

1,278,495

Total tangible fixed assets
Intangible fixed assets

Investments and other assets

Total investments and other assets
Total long-term assets
Total assets

8

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2019

March 31, 2020

LIABILITIESCurrent liabilities
Trade notes and accounts payable

75,44895,938

Income taxes payable

57,671

52,654

Customer advances

77,247

135,326

Accrued employees’ bonuses

33,13929,139Accrued warranty expenses

14,097

14,534

Others47,27754,986

Total current liabilities

304,882

382,578

Net defined benefit liabilities

60,60060,635

Others

4,027

5,588

Total long-term liabilities

64,62866,224

369,510448,80254,961

54,961Long-term liabilities

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,01178,011Retained earnings

748,827

702,990

Treasury stock, at cost

(11,821)(29,310)

Total shareholders' equity

869,977

806,652

13,024

20,126(34)(52)

Foreign currency translation adjustments

4,366(4,111)

Accumulated remeasurements of defined benefit plans(6,585)(3,313)

Total accumulated other comprehensive income (loss)

10,77012,648

7,368

10,391

Accumulated other comprehensive income
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments

Share subscription rights
Total net assets
Total liabilities and net assets

9888,117829,692

1,257,627

1,278,495

TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)
Year ended

Year ended

March 31, 2019

March 31, 2020

1,278,240

1,127,286

Cost of sales

752,057

675,344

Gross profit

526,183

451,941

Salaries and allowances

26,03525,197

Research and development expenses

113,980

120,268

Net sales

Selling, general & administrative expenses

Others75,59569,183

Total selling, general and administrative expenses

215,612214,649

310,571

237,292

Operating income
Non-operating income

783

1,117

Foreign exchange gain

Interest income

3,623

2,539

Revenue from grants

833

1,330

Others

6,114

3,465

Total non-operating income

11,354

8,452

-

174

Non-operating expenses
Commission for purchase of treasury stock
Additional payment of custom tax-

173

Maintenance and operation costs of closed facilities

57-

Others206

418

Total non-operating expenses

263

765

321,662

244,979

101

34

Ordinary income
Unusual or infrequent profit
Gain on sales of fixed assets
Gain on change in equity-

136

Gain on sales of investment securities

768-

Total unusual or infrequent profit

870

171

Loss on disposal and sales of fixed assets

967

483

Others

56

41

1,024

524

Income before income taxes

321,508

244,626

Provision for income taxes and enterprise taxes

72,47865,177801(5,757)

Total income taxes

73,28059,419Net income

248,228

185,206

Net income attributable to owners of parent

248,228

185,206

Unusual or infrequent loss

Total unusual or infrequent loss

Deferred income taxes

10

TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Year ended

Year ended

March 31, 2019

March 31, 2020

248,228

185,206(4,102)

7,099

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

(272)

6

Foreign currency translation adjustments(1,170)(8,461)Remeasurements of defined benefit plans

(106)

3,278

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

119

(45)

(5,531)

1,878

242,696

187,084

242,696

187,084

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

11

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2019

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

Retained earnings

78,011

Treasury stock

625,390(7,518)

Total shareholders'equity750,843

Changes of items during
the period

Cash dividends(124,754)(124,754)

Net income attributableto owners of parent

248,228

248,228

Repurchase of treasury
stock
Disposal of treasury
stock(5,004)(5,004)

(36)

701

664

Net changes except forshareholders' equity
Total changes of items
during the period--

123,437(4,303)

119,133

Balance at end of period

54,96178,011

748,827(11,821)869,977

Accumulated other comprehensive income

Net unrealized gains Net deferred gains(losses) on(losses) on hedging
investment securities
instruments
Balance at beginningof period

17,134Foreign currencytranslation
adjustments

278

5,507

Accumulated
Total accumulated
remeasurements of other comprehensive
defined benefit plansincome (loss)(6,618)16,302

Share subscription
rights4,363

Total net assets

771,509

Changes of items during
the period

Cash dividends(124,754)

Net income attributableto owners of parent

248,228

Repurchase of treasury
stock(5,004)

Disposal of treasury
stock

664

Net changes except forshareholders' equity(4,109)(313)(1,141)

33(5,531)

3,005(2,526)

Total changes of items
during the period(4,109)(313)(1,141)

33(5,531)

3,005

116,607

Balance at end of period

13,024

(34)

4,366

(6,585)

10,7707,368

888,117

12

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2020

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

Retained earnings

78,011

Treasury stock

748,827(11,821)

Total shareholders'equity869,977

Changes of items during
the period

Cash dividends(95,513)(95,513)

Net income attributableto owners of parent

185,206

185,206

Repurchase of treasury
stock(154,096)(154,096)(1,616)

2,684

1,067

(133,922)

133,922-

Disposal of treasury
stock

Cancellation of treasury stock

10

Others10

Net changes except forshareholders' equity
Total changes of items
during the period--(45,836)(17,488)(63,325)

Balance at end of period

54,96178,011

702,990(29,310)806,652

Accumulated other comprehensive income

Net unrealized gains Net deferred gains(losses) on(losses) on hedging
investment securities
instruments
Balance at beginningof period

13,024Foreign currencytranslation
adjustments

(34)

4,366

Accumulated
Total accumulated
remeasurements of other comprehensive
defined benefit plansincome (loss)(6,585)

10,770Share subscription
rights7,368

Total net assets

888,117

Changes of items during
the period

Cash dividends(95,513)

Net income attributableto owners of parent

185,206

Repurchase of treasury
stock(154,096)

Disposal of treasury
stock

1,067

Cancellation of treasury stock-

Others10

Net changes except forshareholders' equity

7,102

(17)

(8,478)

3,271

1,878

3,022

4,900

Total changes of items
during the period

7,102

(17)

(8,478)

3,271

1,878

3,022

(58,424)

Balance at end of period

20,126(52)(4,111)(3,313)

12,648

10,391

829,692

13

TOKYO ELECTRON

Consolidated Statements of Cash Flows(Millions of yen)
Year ended

Year ended

March 31, 2019

March 31, 2020

Cash flows from operating activities
Income before income taxes

321,508

244,626

Depreciation and amortization

24,323

29,107354

196

Increase (decrease) in accrued employees' bonuses(1,165)(3,802)

Interest and dividend revenue(2,573)(1,920)

Amortization of goodwill

Decrease (increase) in trade notes and accounts receivable

10,541(5,370)Decrease (increase) in inventories(14,765)(44,065)

Increase (decrease) in trade notes and accounts payable(31,752)

22,337

6,818(19,508)

Decrease (increase) in prepaid consumption tax
Increase (decrease) in accrued consumption tax(2,845)

6,140

Increase (decrease) in customer advances(22,077)

58,630

Others

1,399

6,308

Subtotal

289,766

292,679

Receipts from interest and dividends

2,738

2,326

Income taxes paid or refund (paid)(102,932)(41,888)

Net cash provided by operating activities

189,572

253,117

Cash flows from investing activities-(10,449)

Payment for purchase of short-term investments(209,500)(90,000)

Proceeds from redemption of short-term investments

165,500

170,000

Payment for purchase of fixed assets(46,517)(49,369)

Payment for acquisition of intangible assets(1,563)(3,383)

Proceeds from sales of shares of subsidiaries resulting in change
in scope of consolidation

10,754-

Payment into time deposits

Others(2,707)(845)

Net cash provided by (used in) investing activities(84,033)

15,951(5,004)(154,096)(124,754)(95,513)

Cash flows from financing activities
Payment for purchase of treasury stock
Dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

(3)

(764)

(129,761)(250,374)(1,020)(3,369)Net increase (decrease) in cash and cash equivalents(25,243)

15,324

Cash and cash equivalents at beginning of period

257,877

232,634

Cash and cash equivalents at end of period

232,634

247,959

14

TOKYO ELECTRON

Notes
Going concern: None

Changes in accounting policies, changes in accounting estimates and restatements: Yes
Changes in accounting policies
Part of consolidated overseas subsidiaries adopted IFRS 16 “Leases” from the beginning of this fiscal year, and recognize all leases as alessee in principle as assets and liabilities on the balance sheets.
TEL Group elected to use the method to recognize the cumulative effect of initially applying this standard at the date of initial applicationin accordance with the transitional treatment. Right-of-use assets were recognized at the same value as lease liabilities, and therefore
there was no impact on retained earnings at the beginning of the current fiscal year.
The effect of this change on the consolidated financial statements is immaterial.

15

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, wafer probers usedin the wafer testing process and other semiconductor production equipment. The SPE segment principally develops, manufactures,
sells such products and provide services on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture offlat panel displays. The FPD production equipment segment principally develops, manufactures, sells such products and provide serviceson them.
(ii) Means to measure net sales and profit or loss in each reportable segment
The method used to account for each reportable segment is similar to those applied to prepare consolidated financial statements.
Intersegment revenues or transfers are based on prevailing market prices.

(iii) Net sales and profit or loss in reportable segments
Year ended March 31, 2020

(Millions of yen)
Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

1,060,997

66,092

197

1,127,286-

1,127,286--

19,292

19,292(19,292)-

1,060,997

66,092

19,4891,146,578(19,292)

1,127,286

270,496

10,589852

281,937(37,310)244,626

Others *1

Total

Adjustments *2 Consolidated *3

Sales
Sales to external customers
Intersegment sales or transfers
Net sales
Segment profit (loss)
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 (37,310) million yen mainly consists of research and development costs of (19,796)
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.

16

TOKYO ELECTRON(iv) Impairment loss on fixed assets in reportable segments
The description of this section has been omitted as the amount was immaterial.

(v) Amortization and balance of goodwill in reportable segments
As of and for the year ended March 31, 2020

(Millions of yen)
Semiconductor
Production Equipment

FPD Production
Equipment

Total Reportable
Segment

Amortization

196

-

196

Balance at end of the period

910

-

910

(vi) Income related to negative goodwill in reportable segments
None

17

TOKYO ELECTRONPer share information
Year ended
March 31, 2020
Net assets per share (Yen)

5,267.96

Net income per share (Yen)

1,170.57

Fully diluted net income per share (Yen)

1,164.02

Notes:
1. Net income per share and fully diluted net income per share are calculated based on the following elements.
Net income per share (Yen)
Net income attributable to owners of parent (Millions of yen)

185,206

Net income not pertaining to owners of common stock (Millions of yen)-

Net income attributable to owners of parent pertaining to common stock(Millions of yen)

185,206

The average number of common stock (Thousands of share)

158,219

Fully diluted net income per share (Yen)The adjustments to net income attributable to owners of parent (Millions of yen)-

Increase in common stock (Thousands of share)

889[Share subscription rights (Thousands of share)][889]

Details of dilutive shares, not included in the computation of fully diluted
net income per share as there is no dilution effect.

-

2. The shares of the Company held by "Executive compensation Board Incentive Plan (BIP) trust" and "share-delivering Employee
Stock Ownership Plan (ESOP) trust", which are recorded in “Treasury stock, at cost” under shareholders’ equity, are included in thetreasury stock which is deducted from the number of shares issued and outstanding as of the end of the period when calculating
net assets per share. The shares held by the trusts are also included in the treasury stock which is deducted from the number ofshares used to calculate the average number of shares outstanding in the period when calculating net income per share and fully diluted
net income per share.

The number of treasury shares deducted in the calculation of net assets per share was 472 thousand shares as of the end of
this fiscal year, and the average number of treasury shares deducted in the calculation of net income per share and fully diluted
net income per share was 398 thousand shares in this fiscal year.

Significant subsequent eventNone

18