TOKYO ELECTRON

Summary of Consolidated Financial Results for the Year Ended
March 31, 2019 (Japanese GAAP)

April 26, 2019

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: May 28, 2019
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, 2019 (April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2018

March 31, 2019%

Net sales (Millions of yen)%

1,130,728

41.4

1,278,240

13.0

281,17280.6

310,571

10.5

Ordinary income (Millions of yen)

280,73778.2

321,662

14.6

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

204,37177.4

248,228

21.5

Operating income (Millions of yen)

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

1,245.48

1,513.58

Diluted

1,241.22

1,507.22

Return on equity (%)

29.0

30.1

Ordinary income to total assets (%)

26.0

26.1

24.9

24.3

Operating income to net sales (%)
Comprehensive income:Year ended March 31, 2019:242,696 million yen, 17.7%

Year ended March 31, 2018:

206,152 million yen, 71.8%

Profit (loss) on equity method: Year ended March 31, 2019:

817 million yen

Year ended March 31, 2018:

571 million yen(2) Consolidated Financial Position
As ofMarch 31, 2018
Total assets (Millions of yen)
Total net assets (Millions of yen)

1,257,627

771,509888,117

63.8

70.0

4,674.49

5,371.78

Equity ratio (%)
Net assets per share (Yen)
Equity:March 31, 2019

1,202,796

880,748 million yen (as of March 31, 2019)
767,146 million yen (as of March 31, 2018)(3) Consolidated Cash Flows
Year ended
March 31, 2018

March 31, 2019

Cash flows from operating activities

186,582

Cash flows from investing activities(11,833)(84,033)

Cash flows from financing activities(82,549)(129,761)

Cash and cash equivalents at end of period

257,877

232,634

1

189,572

TOKYO ELECTRON

2. Dividends
Year ended
March 31, 2018Year ending
March 31, 2020

March 31, 2019

(Forecast)

1Q-end dividends per share (Yen)

-

-

-

2Q-end dividends per share (Yen)

277.00413.00193.00---347.00345.00309.00502.003Q-end dividends per share (Yen)
Year-end dividends per share (Yen)Annual dividends per share (Yen)

624.00758.00Total dividends (Millions of yen)

102,398

124,458

Payout ratio (%)

50.1

50.1

Dividend on equity (%)

14.5

15.1

50.2

Note: The year-end dividends per share for the year ended March 31, 2019 shown above are forecast. Please refer to the press
Note: release "Announcement on Dividends Forecast Revision for the Fiscal Year Ended March 31, 2019" published today.
3. Financial Forecasts for the Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ending
September 30, 2019

March 31, 2020%%

Net sales (Millions of yen)

490,000(29.1)

1,100,000(13.9)

Operating income (Millions of yen)

85,000(51.5)

220,000(29.2)

Ordinary income (Millions of yen)

85,000(53.1)

220,000(31.6)Net income attributable to owners of parent (Millions of yen)

63,000(53.4)

164,000(33.9)Net income per share (Yen)384.241,000.25

Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): None
New: 0 company (-) Excluded: 0 company (-)(2) 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
(3) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of March 31, 2019 :

165,210,911 shares

As of March 31, 2018 :

165,210,911 shares

2. Number of shares of treasury stock
As of March 31, 2019:

1,252,517 shares

As of March 31, 2018:

1,097,342 shares

3. Average number of shares outstanding
Year ended March 31, 2019:

164,000,466 sharesYear ended March 31, 2018:

164,090,594 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". (249,701 shares as of March 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, 2019 (April 1, 2018 to March 31, 2019)(1) Operating results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2018

March 31, 2019%

Net sales (Millions of yen)%

1,052,741

40.2

1,158,480

Operating income (Millions of yen)

122,841102.9

146,269

10.0
19.1

Ordinary income (Millions of yen)

128,549

107.7

352,693

174.4

Net income (Millions of yen)

91,376

95.7

312,750242.3

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

556.87

1,907.01

Diluted554.96

1,898.99(2) Financial position
As ofMarch 31, 2018

March 31, 2019

Total assets (Millions of yen)

994,055

978,113

Total net assets (Millions of yen)

357,928

540,384

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

35.6

54.5

2,154.40

3,250.92

533,015 million yen (as of March 31, 2019)353,565 million yen (as of March 31, 2018)* 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. Please refer to "1. Overview of Operating Results and Consolidated Financial
Conditions (3) "Future Forecast" on page 7. The Company plans to hold an earnings release conference for investors andanalysts on April 26, 2019. Supplementary materials to be handed out 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, 2019
During the fiscal year under review, although there were signs of an economic slowdown in the Asia region including China, and inEurope, the US economy remained strong, and the global economy was robust overall.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, memory semiconductors led the expansion of themarket on the strength of investments in data centers and demand for smartphones. Investments in memory have been in an
adjustment phase since the second half of the fiscal year. However, in the medium to long term, demand for semiconductors is
expected to continue to expand as a result of new technologies such as artificial intelligence (AI) and the next-generation
communication standard (5G), in addition to conventional PCs and mobile devices.

(ii) Overview of Profit and Loss during the Fiscal Year Ended March 31, 2019
In this environment, the consolidated business results for the fiscal year under review are as follows.
Net sales for the fiscal year increased 13.0% from the previous year to 1,278,240 million yen. Domestic net sales increased 40.4%
from the previous year to 208,796 million yen, while overseas net sales increased 8.9% to 1,069,443 million yen to account for
83.7% of net sales.
Cost of sales increased 14.7% to 752,057 million yen and gross profit increased 10.8% to 526,183 million yen. As a result, the grossprofit margin declined by 0.8 points to 41.2%.
Selling, general and administrative (SG&A) expenses increased 11.2% to 215,612 million yen, while the ratio to consolidated net
sales declined by 0.2 points to 16.9%.
As a result, operating income increased 10.5% to 310,571 million yen and operating profit ratio decreased 0.6 points to 24.3%. After
netting of non-operating income of 11,354 million yen and non-operating expenses of 263 million yen, ordinary income increased
14.6% to 321,662 million yen.
Income before income taxes was 321,508 million yen (year-on-year growth of 16.8%) and net income attributable to owners ofparent was 248,228 million yen (year-on-year growth of 21.5%).
As a result, net income per share was 1,513.58 yen compared to net income per share of 1,245.48 yen in the previous fiscal year.

4

TOKYO ELECTRON(iii) Overview of Operations by Business Segment during the Fiscal Year Ended March 31, 2019
The overview of each business segment is as described below.

Semiconductor Production Equipment
With regard to DRAM and 3D NAND flash memory, capital investment plans by memory manufacturers have been in a correction
phase since the second half of the fiscal year. However, the memory market was robust over the full fiscal year due to heightened
demand for mobile devices and data centers. In addition, capital investment in logic semiconductors has resumed due to thetransition to the latest generation, resulting in a robust market for semiconductor production equipment. Consequently, net sales toexternal customers in this segment during the fiscal year under review year were 1,166,781 million yen (year-on-year growth of
10.6%).

In this segment, new products, the “Triase+™ EX-II Pro™” single wafer deposition system and the batch spray cleaner“MERCURY™+”, were released during this fiscal year.

Flat Panel Display (FPD) Production Equipment
The FPD production equipment market was robust, with continued capital investment for small to medium-sized OLED panels formobile devices in addition to strong capital investment in China for large-sized LCD panels for televisions. Consequently, net sales
to external customers in this segment during the fiscal year under review were 111,261 million yen (year-on-year growth of 48.2%).

Furthermore, in this segment, two new products, the 10.5 generation dry etching device “Impressio™3300 PICP™” for highdefinition flat panel displays and the inkjet drawing device “Elius™1000” for producing organic EL displays, were launched during
this fiscal year.

Other
Net sales to external customers in this segment during the fiscal year under review totaled 197 million yen (year-on-year decreaseof 53.5%).

(For reference）
Consolidated Operating Results（Millions of yen）
Year ended March 31, 2019Year ended
March 31, 2018
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

1,130,728

295,569

395,465

691,034

268,169

319,036

587,205 1,278,240

1,055,234
145,507
119,243
96,940371,946
169,063
104,322
48,21075,068425
281,172
280,737
204,371

280,400
51,14628,496
17,75588,98626,31554,964
12,734
15,11355
72,41875,21255,741

358,057
58,04845,91031,34586,55848,05771,306
16,83037,35453
103,000
106,034
79,553

638,457
109,195
74,406
49,101
175,545
74,372
126,270
29,56452,468108
175,418
181,247
135,294

239,525
54,09522,767
18,61360,96029,38438,09915,60428,59846
58,73560,66048,831

288,798
42,74334,75725,39868,917
59,16542,544
15,27130,19542
76,41679,754
64,101

528,323 1,166,781
96,839 206,035
57,524 131,931
44,012
93,113
129,877 305,422
88,549 162,922
80,643 206,914
30,87560,44058,793 111,261
89
197
135,152 310,571
140,415 321,662
112,933 248,228

Note: Intersegment sales or transfers are eliminated.

5

Full Year

TOKYO ELECTRON(2) Overview of Consolidated Financial Conditions(i) Financial Conditions
Current assets at the end of the current fiscal year were 982,897 million yen, an increase of 36,299 million yen compared to the endof the previous fiscal year. This was largely due to an increase of 90,256 million yen in cash and deposits, a decrease of 71,500
million yen in short-term investments included in securities.
Tangible fixed assets increased by 24,116 million yen from the end of the previous fiscal year to 150,069 million yen.
Intangible fixed assets decreased by 6,827 million yen from the end of the previous fiscal year to 9,054 million yen.
Investments and other assets increased by 1,242 million yen from the end of the previous fiscal year to 115,607 million yen.
As a result, total assets increased by 54,830 million yen from the end of the previous fiscal year to 1,257,627 million yen.
Current liabilities decreased by 63,570 million yen compared to the previous fiscal year to 304,882 million yen. This was largely due
to a decrease in trade notes and accounts payable of 33,158 million yen, a decrease in customer advances of 22,961 million yen.
Long-term liabilities increased by 1,793 million yen compared to the previous fiscal year to 64,628 million yen.
Net assets increased by 116,607 million yen compared to the previous fiscal year to 888,117 million yen. This was largely due to anincrease of 248,228 million yen in net income attributable to owners of parent and a decrease resulting from the payment of 124,754
million yen in year-end dividends for the previous fiscal year and an interim dividend for the current fiscal year. As a result, the equity
ratio was 70.0%.

The above comparisons to the previous fiscal year are made on the condition that "Partial Amendments to Accounting Standard forTax Effect Accounting" (ASBJ Statement No. 28, February 16, 2018) was adopted from the beginning of this fiscal year, and such
amendments were also retrospectively applied to the balances as of the end of previous fiscal year.

(ii) Cash Flows
Cash and cash equivalents at the end of the current fiscal year decreased by 25,243 million yen compared to the same period of theprevious fiscal year to 232,634 million yen. The combined balance including 160,000 million yen time deposits and short-term
investments with maturities of more than three months that are not included in cash and cash equivalents increased by 18,756
million compared to the previous fiscal year to 392,634 million yen. The state of cash flows in the current fiscal year are as
described below.
Cash flows from operating activities were a positive 189,572 million yen, an increase of 2,990 million yen compared to the same
period of the previous fiscal year. The major positive factors were 321,508 million yen in income before income taxes, 24,323 million
yen in depreciation and amortization, and a decrease in trade notes and accounts receivable of 10,541 million yen. The major
negative factors were income taxes paid of 102,932 million yen, a decrease in trade notes and accounts payable of 31,752 million
yen, a decrease in customer advances of 22,077 million yen, and an increase in inventories of 14,765 million yen.
Cash flows from investing activities were a negative 84,033 million yen compared to a negative 11,833 million yen in the same
period of the previous fiscal year due largely to the payment of 46,517 million yen for the purchase of tangible fixed assets and an
outflow of 44,000 million yen due to an increase in short-term investments.
Cash flows from financing activities were a negative 129,761 million yen compared to a negative 82,549 million yen in the same

6

TOKYO ELECTRON

period of the previous fiscal year. This was largely due to the payment of 124,754 million yen in dividends.

(3) Future Forecast
While current market conditions for our main business of semiconductor production equipment is in a temporary consumption phase,
we expect capital investment to trend towards recovery as the balance between supply and demand improves in the second half ofthe year. In the medium to long term, further market expansion is expected due to the commencement of investments insemiconductors supported by IoT, artificial intelligence (AI), the next-generation communication standard (5G), and other factors.
With regard to FPD production equipment as well, while there has been an adjustment of investment in large panels, a recovery ininvestment sentiment is expected from the second half of the year. Based on the current business and economic environment, theconsolidated

financial

forecasts

for

next

fiscal

year

(the

year

endingMarch

Consolidated Forecast

31,

2020)

are

set

out

below.

(Billions of yen, Y/Y change)

Year ending March 31, 2020

Interim

Net Sales

490.0
450.0
40.0
85.0
85.0
63.0

Semiconductor Production Equipment
FPD Production Equipment
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent

Full Year(29.1)%(29.5)%(23.8)%(51.5)%(53.1)%(53.4)%

1,100.0
1,030.0
70.0
220.0
220.0
164.0

(13.9)%(11.7)%(37.1)%(29.2)%(31.6)%(33.9)%

Note: Intersegment sales or transfers are eliminated.

Note: The financial forecasts and estimates stated in this announcement 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 inforeign 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 andprofits may differ substantially from the projections stated in this announcement.

(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.

7

TOKYO ELECTRON• TEL will flexibly consider share buybacks.

The year-end dividend for the current fiscal year (the year ended March 31, 2019) is scheduled to be 345 yen per share. The
dividend for the full year will be 758 yen per share, which includes the interim dividend of 413 yen per share.
Dividends are forecasted for the next fiscal year (the year ending March 31, 2020) to be 502 yen per share for the entire year
which consists of an interim dividend of 193 yen and year-end dividend of 309 yen, in accordance with the above consolidated
forecast for net income attributable to owners of parent for the next fiscal year pursuant to the stated dividend policy.

2Q-endDividend per share
Year-end

Total

Current fiscal year
(ended March 31, 2019)413 yen

345 yen758 yenNext fiscal year
(ending March 31, 2020)

193 yen309 yen502 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.

8

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2018

March 31, 2019ASSETS
Current assets
Cash and deposits

87,377

177,634

Trade notes and accounts receivable

159,570

146,971

Securities

286,500

215,000

Merchandise and finished goods

220,497

234,102

Work in process

75,50462,785

Raw materials and supplies

48,06957,331Others69,137

89,156(59)(84)

946,597

982,897

159,474

169,682

Accumulated depreciation(103,229)(103,692)

Buildings and structures, net

56,24565,990109,064

122,206

Accumulated depreciation(84,918)(91,846)

Machinery and carriers, net

24,14530,359Land

28,03026,849Construction in progress

11,06019,643

Others29,86831,623(23,397)(24,397)

6,470

7,225

125,952

150,069

Others

15,882

9,054

Total intangible fixed assets

15,882

9,054

Investment securities

33,12827,853

Deferred tax assets

62,442

63,925

Allowance for doubtful accounts
Total current assets
Long-term assets
Tangible fixed assets
Buildings and structures

Machinery and carriers

Accumulated depreciation
Others, net
Total tangible fixed assets
Intangible fixed assets

Investments and other assets

Net defined benefit assets

-

3,065

Others

20,21522,189Allowance for doubtful accounts(1,422)(1,426)

114,364

115,607

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

9

256,199274,730

1,202,796

1,257,627

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2018

March 31, 2019

LIABILITIESCurrent liabilities
Trade notes and accounts payable

108,60775,448

Income taxes payable

66,046

57,671

Customer advances

100,208

77,247

Accrued employees’ bonuses

34,46733,139Accrued warranty expenses

11,284

14,097

Others47,83747,277

Total current liabilities

368,452

304,882

Net defined benefit liabilities

59,30960,600

Others

3,525

4,027

Total long-term liabilities

62,83464,628431,287

369,51054,961

54,961Long-term liabilities

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,01178,011Retained earnings

625,390

748,827

Treasury stock, at cost

(7,518)(11,821)

Total shareholders' equity

750,843869,977

Net unrealized gains (losses) on investment securities

17,134

13,024

Net deferred gains (losses) on hedging instruments

278

(34)

Accumulated other comprehensive income

Foreign currency translation adjustments

5,507

4,366

Accumulated remeasurements of defined benefit plans(6,618)(6,585)

Total accumulated other comprehensive income (loss)

16,302

10,770

4,363

7,368

Share subscription rights
Total net assets
Total liabilities and net assets

10

771,509888,117

1,202,796

1,257,627

TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)
Year ended

Year ended

March 31, 2018

March 31, 2019

1,130,728

1,278,240

Cost of sales

655,695

752,057

Gross profit

475,032

526,183

Salaries and allowances

24,07926,035

Research and development expenses

97,103113,980

Net sales

Selling, general & administrative expenses

Others72,67775,595

Total selling, general and administrative expenses

193,860

215,612281,172

310,571

325

1,790

-

3,623

Others

2,433

5,941

Total non-operating income

2,758

11,354

71

57

2,897

-

Operating income
Non-operating income
Dividend income
Foreign exchange gain

Non-operating expenses
Maintenance and operation costs of closed facilities
Foreign exchange loss
OthersTotal non-operating expenses
Ordinary income

224

206

3,193

263

280,737

321,662

Unusual or infrequent profit
Gain on sales of fixed assets

77

101

-

768

77

870

Loss on disposal and sales of fixed assets

487

967

Loss on impairment of fixed assets, goodwill and other assets

925-

Loss on revision of retirement benefit plan

3,154

-

Others1,004

56

Total unusual or infrequent loss

5,572

1,024

275,242

321,508

Gain on sales of investment securities
Total unusual or infrequent profit
Unusual or infrequent loss

Income before income taxes
Provision for income taxes and enterprise taxes

83,43472,478Deferred income taxes(12,591)

801

Total income taxes

70,84273,280Net income

204,399

248,228

Net income attributable to non-controlling interests
Net income attributable to owners of parent

11

28

-

204,371248,228

TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Year ended

Year ended

March 31, 2018

March 31, 2019

204,399

248,228

6,337(4,102)Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments

198

(272)

Foreign currency translation adjustments(242)(1,170)Remeasurements of defined benefit plans(4,494)

(106)

(46)

119

1,752

(5,531)

206,152

242,696

206,122242,69629-

Share of other comprehensive income of associates
accounted for using the equity method
Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

12

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2018

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

78,023Retained earnings

Treasury stock

503,325(7,766)

Total shareholders'equity628,543

Changes of items during
the period
Cash dividends(82,203)(82,203)

Net income attributableto owners of parent

204,371

204,371

Repurchase of treasury
stock
Disposal of treasury
stock

(102)

Change in equity of parent
arising from transactions with
non-controlling shareholders

(16)

(16)

264

161

(12)

(12)

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

Balance at end of period

54,961(12)

122,064247

122,300

78,011

625,390(7,518)750,843

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

10,78859

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

Foreign currencytranslation
adjustments
5,789(2,086)

14,551

Share subscription
rights2,620

Non-controllinginterests

284

Total net assets

645,999

Changes of items during
the period
Cash dividends(82,203)

Net income attributableto owners of parent

204,371

Repurchase of treasury
stock

(16)

Disposal of treasury
stock

161

Change in equity of parent
arising from transactions with
non-controlling shareholders(12)

Net changes except forshareholders' equity

6,345

219

(281)

(4,531)

1,751

1,742

(284)

3,209

Total changes of items
during the period

6,345

219

(281)

(4,531)

1,751

1,742

(284)

125,509

Balance at end of period

17,134278

5,507(6,618)16,302

4,363-

771,50913

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

14

TOKYO ELECTRON

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

Year ended

March 31, 2018

March 31, 2019

Cash flows from operating activities
Income before income taxes

275,242

321,508

Depreciation and amortization

20,61924,323

Loss on impairment

925

Amortization of goodwill

600

354

2,769

2,968

Increase (decrease) in accrued warranty expenses
Interest and dividend revenue

-

(859)

(2,573)

Decrease (increase) in trade notes and accounts receivable(25,971)

10,541

Decrease (increase) in inventories(109,846)(14,765)

Increase (decrease) in trade notes and accounts payable

28,535(31,752)

Decrease (increase) in prepaid consumption tax(13,896)

6,818

Increase (decrease) in accrued consumption tax

1,297(2,845)

Increase (decrease) in customer advances

31,684(22,077)

Others24,136(2,735)

Subtotal

235,238

289,766

1,115

2,738

Income taxes paid or refund (paid)(49,771)(102,932)

Net cash provided by operating activities

186,582

189,572

Payment for purchase of short-term investments(131,000)(209,500)

Proceeds from redemption of short-term investments

166,000

165,500

Payment for purchase of fixed assets(41,750)(46,517)-

10,754

Receipts from interest and dividends

Cash flows from investing activities

Proceeds from sales of shares of subsidiaries resulting in change
in scope of consolidation
Others(5,082)(4,270)Net cash provided by (used in) investing activities(11,833)(84,033)

Cash flows from financing activities
Payment for purchase of treasury stock
Dividends paid
OthersNet cash used in financing activities(16)(5,004)(82,203)(124,754)

(329)

(3)

(82,549)(129,761)

Effect of exchange rate changes on cash and cash equivalents

1,312(1,020)Net increase (decrease) in cash and cash equivalents

93,511(25,243)

Cash and cash equivalents at beginning of period

164,366

257,877

Cash and cash equivalents at end of period

257,877

232,634

15

TOKYO ELECTRON

Notes
Going concern: None

Changes in accounting policies, changes in accounting estimates and restatements: None

Change in presentation"Partial Amendments to Accounting Standard for Tax Effect Accounting" (ASBJ Statement No. 28, February 16, 2018) was adopted
from the beginning of this fiscal year, and deferred tax assets are classified as "Investments and other assets" and deferred tax liabilities
are classified as "Long-term liabilities", respectively.
As a result, out of “Deferred tax assets” of 50,505 million yen presented under “Current assets” in the previous fiscal year, 44,596 million
yen was reclassified to “Deferred tax assets” under “Investments and other assets”, and 5,908 million yen was offset by deferred tax
liabilities, which are included in “Others” under “Long-term liabilities”. Accordingly, total assets as of the end of the previous fiscal year
decreased by 5,908 million yen.

Note on Consolidated Statements of Income

Provision for income taxes and enterprise taxes
The Company received notification from the National Tax Agency, Japan (NTA) dated January 24, 2019, that the agreement had
been reached through the Mutual Agreement Procedure (MAP) between the NTA and Korean income tax authorities concerning thetransfer pricing adjustments assessed during prior historical periods relating to the transactions between the Company andits Korean subsidiary. As a result, 862 million yen of tax benefit is included in current income tax expense as the difference between
the actual tax refunds and the estimated amount recorded in prior fiscal year.

16

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, profit or loss, assets and other items 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.
Shared assets are not allocated to each reportable segment, but the associated costs are allocated based on reasonable standards.

(iii) Net sales, profit or loss, assets and other items in reportable segments
As of and for the year ended March 31, 2019

(Millions of yen)

Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

1,166,781

111,261197

1,278,240-

1,278,240-

18,914

18,914(18,914)-

1,166,781

111,261

19,112

1,297,155(18,914)

1,278,240

Segment profit (loss)

326,716

24,241

1,035

351,993(30,484)

321,508

Segment assets

506,92935,722

2,474

545,126

712,501

1,257,627

14,003873

126

15,002

9,321

24,323

354

-

-

354

22,633

1,507

198

24,340

Others *1

Total

Adjustments *2 Consolidated *3

Sales
Sales to external customers
Intersegment sales or transfers
Net sales-

Other items
Depreciation and amortization
Amortization of goodwill
Increase in the amount of tangible
and intangible fixed assets

29,082354
53,422

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. a) "Adjustments" for segment loss totaling 30,484 million yen mainly consists of research and development costs of 15,999 million yen
pertaining to the fundamental research and element research of TEL and other general and administrative costs that do notbelong to reportable segments.

17

TOKYO ELECTRONb) The main elements included in "Adjustments" of segment assets worth 712,501 million yen are cash
and deposits, securities, and buildings and structures which are not allocated to each reportable segment.
c) The main elements included in "Adjustments" of tangible and intangible fixed assets worth 29,082
million yen are the investments in buildings and structures which are not allocated to each reportable segment.
*3. Segment profit (loss) is adjusted against income before income taxes in Consolidated Statements of Income.

(iv) Impairment loss on fixed assets in reportable segments
None(v) Amortization and balance of goodwill in reportable segments
As of and for the year ended March 31, 2019

(Millions of yen)
Semiconductor
Production Equipment

Amortization
Balance at end of the period

FPD Production
Equipment

Total Reportable
Segment

354

-

354

1,124

-

1,124

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

18

TOKYO ELECTRONPer share information
Year ended
March 31, 2019
Net assets per share (Yen)

5,371.78

Net income per share (Yen)

1,513.58

Fully diluted net income per share (Yen)

1,507.22

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)

248,228

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)

248,228

The average number of common stock (Thousands of share)

164,000

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)

692[Share subscription rights (Thousands of share)][692]

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 249 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 167 thousand shares in this fiscal year.

Significant subsequent event
None

19