Business Update

Hiroshi Takenaka, President & CEO
February 3, 2012

CORP IR/February 3, 2012

Quarterly Orders(Billions of Yen)300

SPE Order
250

FPD/PVE Order

October-December/2011
SPE
144.9（+97%）
FPD/PVE
5.0（+196%）
Total:150.0（+99%）( ): change from July-September/2011% is calculated using full amounts

200

150

100

000/7-9
10-12
01/1-3
4-6
7-9
10-12
02/1-3
4-6
7-9
10-12
03/1-3
4-6
7-9
10-12
04/1-3
4-6
7-9
10-12
05/1-3
4-6
7-9
10-12
06/1-3
4-6
7-9
10-12
07/1-3
4-6
7-9
10-1208/1-3
4-6
7-9
10-12
09/1-3
4-6
7-9
10-12
10/1-3
4-6
7-9
10-12
11/1-3
4-6
7-9
10-12

50

18
CORP IR/February 3, 2012

SPE Orders by Application: Equipment only
100%

24 23
44

31 27 37
58

24

26
25

18
15 18 3224

15 14
11/1-3

10-12

23 23
7-9

30
4-6

39

926

27 16
611
10-12

22

47

7-9

28

4-6

15 23

10/1-3

10-12

7-9

4-6

09/1-3

10-12

7-9

4-6

08/1-3

10-12

7-9

4-6

07/1-310-12

0%7-920%

4-6

40%

06/1-360%

05/10-1280%

15 17 1916 2222 28 25 17 183334 37
41
7 4 6 846 52
1541158
12 16 21278 63349 35
0362231537 214226
935
12 121610 191155 55
8 515245
3939323230
29 26 24 27242222

Logic & others (MPU, System LSI, Others）
Logic foundry
FlashDRAM

19
CORP IR/February 3, 2012

Business Environment: As of early February 2012
► SPE capex
Semiconductor market recovery delayed by global economic slowdown anduncertain outlook. In 2012, expect an overall YonY decline of around 10%,despite expected investment by logic/foundries due to uptake of cutting-edge
32/28nm process for new mobile devices.

► FPD capex
Small- and medium-sized panel investment expected to decline in 2012.
Large panel capex will remain sluggish due to collapse in TV prices.
Capex in 2012 expected to be around half 2011 level. Improvement insupply/demand balance expected from 2013.

► PV capex
Continued growth expected in medium- and long-term but due to panel pricedecline by overcapacity, capex will be sluggish in short-term.
20CORP IR/February 3, 2012

2012: Mobile Devices Driving Investment
Ultrabook

Smartphone/Tablet

Communications
standard shift to LTE
Quad-core MPU
Advanced GPU

Strong sales/
new model>30GB NAND

>100GB SSD

Logic/Foundry

NAND

Increased investment needsfor 32/28nm

Increased investment needsfor 20nm*LTE: Next generation high speed data transmission for mobile phones. Currently planned to be introduced by companies worldwide.

CORP IR/February 3, 201221

Developing New Memory with Tohoku University
Limits to miniaturization, expectation for next memory after DRAMSPINTRONICS MEMORY
Global leader in Spintronics
memory development

Led by Professor Tetsuo Endoh
Magnetic materials technology
Device technology
Design technology

Process technology
Equipment technology• Nonvolatile memory• Low power consumption with high writing speed• New memory in use of magnetic orientation

Aiming early establishment of leading-edge production technology
22CORP IR/February 3, 2012

Disclaimer regarding forward-looking statement
Forecast of TEL’s performance and future prospects and other sort of information publishedare made based on information available at the time of publication. Actual performance andresults may differ significantly from the forecast described here due to changes in variousexternal and internal factors, including the economic situation, semiconductor/FPD/PV market
conditions, intensification of sales competition, safety and product quality management, andintellectual property-related risks.

Processing of numbers
For the amount listed, because fractions are rounded down, there may be the cases where thetotal for certain account titles does not correspond to the sum of the respective figures foraccount titles. Percentages are calculated using full amounts, before rounding.

Exchange Risk
In principle, export sales of Tokyo Electron’s mainstay semiconductor and FPD/PV cell
production equipment are denominated in yen. While some settlements are denominated indollars, exchange risk is hedged as forward exchange contracts are made individually at thetime of booking. Accordingly, the effect of exchange rates on profits is negligible.
FPD/PV: Flat panel display/Photovoltaic

23
CORP IR/February 3, 2012