Financial Briefing for the Fiscal
Year Ended March 31, 2022

April 27, 2022

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

AgendaFinancial Report
Corporate Director Yukio Saeki

Forecast of Financial Results for the Fiscal YearEnding March 31, 2023
President & Representative Director
Atsushi Tokushige
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2

Financial Report

Corporate Director Yukio Saeki

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LTD. All
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3

Summary of Financial Results for the Fiscal Year
Ended March 31, 2022
Year-on-Year Comparison: Higher sales and income
Net sales:
25.6% increase
Ordinary income: 58.2% increase
Net income attributable to owners of parent: 61.8% increase

Higher sales and income due to strong demand forsemiconductors in a broad range of fields
Expansion of trade rights also contributed to enhanced businessperformance
Gains from Tokyo Electron Device Nagasaki’s exchange of landand buildings
Posted impairment losses on goodwill and intangible assets
related to FAST CORPORATION
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Summary of Financial Results: Comparison with Prior Year
(Million yen)

FY2022

143,268

179,907

36,639

Cost of sales

122,666

154,268

31,602Gross profit

20,601

25,638

5,036

15,981

17,506

1,525

4,620

8,131

3,510

181
176

189
1,002

8
826

Ordinary income

4,625

7,318

2,692

6,200

Net income

3,143

5,085

1,941

5,200

Number of employees

1,247

1,279

32

Net sales

Selling, general &administrative expenses

Operating income
Non-operating income
Non-operating expenses

ChangeFY 2022
Forecast

FY2021

172,000*Net income is net income attributable to owners of the parent. *The forecast of FY 2022 business performance is that released on Oct. 28, 2021, and the forecast was revised on Apr. 15, 2022.
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

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Summary of Financial Results: Change in Net Sales
FY 2021
Net Sales

CN Business▲¥0.5 bill.

EC Business(Distribution)

EC Business(PB Business)

FY 2022Net Sales+¥36.1 bill. +¥1.0 bill.

¥179.9 bill.
¥143.3bill.

*Amounts arerounded off
In the segment categories, the PB Business is included in the EC Business.
PB is an abbreviation of “Private Brand;” the title was changed from In-House Brand Business, which was used in the past.
The PB Business includes Tokyo Electron Device Nagasaki Limited and FAST CORPORATION.
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Sales and Income by Segment• CN Business: Net sales were down due to the cancellation of agency
agreements, application of new accounting standards, and delivery delays;
SG&A expenses were up due to an increase in employees, resulting in lower
segment income• EC Business: Despite semiconductor supply problems, expanded trade rights
and increased market demand resulted in higher sales and income(Million yen)
FY 2021
Net Sales

FY 2022

Segment
IncomeNet Sales

ChangeSegment
IncomeChangeComputer Networks(CN) business

23,933

2,834

23,460

▲473

2,234

▲600

Electronic Components(EC) business

119,334

1,790

156,446

37,112

5,083

3,293

Total

143,268

4,625

179,907

36,639

7,318

2,692

*Segment income is ordinary income*In the segment categories, the PB Business is included in the EC Business
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Segment Information: CN Business (1/2)
Sales Component Ratios by Product Category•••

Sales of network-related products to system integrators and telecommunications carriers
were weakDue to existing product growth, sales of storage-related products only declined slightly
despite the cancellation of agency agreements
Increased sales of security-related products such as remote access and cloud security

Network-Related Products

Security-Related
Products
Storage-Related
Maintenance & Monitoring Services
Products

FY 202135%

FY 2022

33%

18%

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18%

7%

40%

10%

39%

Segment Information: CN Business (2/2)
Sales Component Ratios by Field•••

Sales to system integrators decreased due to cancellation of agency agreements
Sales to data centers and cloud business operators increased in conjunction with increases intelecommunications volumes
Sales to enterprises and others decreased due to fewer large sales and delivery delays

FY 2021

FY 2022

System Integrators

Data Centers &Cloud Business
Operators

Enterprises & Others

Telecommunications
carriers

44%

15%

28%

13%

25%

24%

12%

39%

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Segment Information: EC Business (1/2)
Sales Component Ratios by Product Category•••

Sales increased across all product categories
Analog ICs: Sales of industrial equipment were up substantially due to expansion of trade
rights
Logic ICs: Sales increased for automotive equipment and communication base stations
Memory ICs

FY 2021

FY 2022

Analog ICs

Micro Processors

30%

25%

36%

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Logic ICs

Boards,Electronic
Components,
etc.

14% 4 14%
%

21%
10

Software & services

PB

5 8%

%

16%

4

%

12%

5 6%

%

Segment Information: EC Business (2/2)
Sales Component Ratios by Application••

Sales increased across all product categories
Sales of industrial equipment increased substantially, which expansion of trade
rights also contributed toCommunications Equipment

FY 2021

Industrial Equipment

Automotive
Equipment

Computers andPeripherals

48%

20%

18%

FY 2022
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

48%

19%
11

Consumer Appliances andElectronics

7

%

7

%

17%

9%

7%

Consolidated Overseas Subsidiaries:
Net Sales—EC Business•

Sales of computers and peripherals and automotive equipment increased
substantially
FY 2021

FY 2022

Consolidated overseas
subsidiaries net sales(million yen)

31,324

43,834

Consolidated overseas
subsidiaries net sales
ratio

26.2%

28.0%

Consolidated overseas
subsidiaries net sales
($1M)

295

390

Exchange rate (yen)106.10112.39ChangeRate of
Change12,509

39.9%

94

32.1%

*The net sales ratio is the ratio to EC Business net sales.
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PB Business: Net Sales—EC Business•••

Design & Manufacturing Services: Recovery in sales for medical equipment andbroadcasting equipment, impacted by shortages of parts and materials
TED Nagasaki: Strong sales of substrate production for semiconductor manufacturing
equipment and smart power supply systems
FAST: Delivery delays due to shortages of parts and materials despite recovery inorders(Million yen)

FY 2021

FY 2022

PB business net
sales

9,205

10,217

Net sales ratio

7.7%

6.5%

Change1,011

Rate of
Change11.0%*The net sales ratio is the ratio to EC Business net sales.

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Balance Sheet
Assets••Liabilities & Net Assets

Notes and accounts receivable increased inconjunction with higher sales
Prepaid expenses increased due to theapplication of new accounting standards

90,870••90,870107,801 (million yen)
5,134

Cash & deposits

5,680
50,44911,187

Notes and accounts
receivable

0

9,481
8,149
2021.3.31

107,801 (million yen)
15,434

Notes andaccounts payable

29,325Interest-bearing
liabilities

31,023

Other liabilities

Net assets

25,334

41,72425,835

Notes and accounts payable and interest-bearing
liabilities increased in conjunction with higher sales
Advances received increased due to the application of
new accounting standards

27,766Inventories

24,696

15,545

Other current assets

29,65232,018

8,906

Non-current assets

2021.3.31

2022.3.31

2022.3.31

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140Statement of Cash Flows(Million yen)2021.3.31
Balance of
CashOperating
C/F

Investment
C/F

Financial
C/F

Exchangedifferences

▲891

▲155

606

78

5,391

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2022.3.31
Balance of
Cash

5,028

15

Changes in Orders Received••

CN Business: In 3Q and 4Q, there were large orders to data centers as well as anincrease in advance orders
EC Business: Continued tight supply in FY 2022 led to an increase in long-term delivery
orders; signs of normalization in 4Q
EC Business

76,983

CN Business
66,82760,5407,955

81,125
11,605(Million yen)

70,925
8,412

6,090

6,404

43,96538,0538,265

37,03036,1938,436

29,282

6,973

7,668
54,1365,059

029,78827,7563Q
FY 2020

4Q

24,223

1Q
FY 2021

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29,362

2Q

60,73669,027

69,5202Q

3Q

62,512

36,992

3Q

4Q
16

1Q
FY 2022

4Q

Forecast of Financial Results for the Fiscal YearEnding March 31, 2023

President & Representative Director
Atsushi Tokushige

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Assumptions of Business Plan for Fiscal YearEnding March 31, 2023 (1/2)
 Exchange rate trend: The yen will remain weak(compared to previous FY)
 Semiconductor supply and demand trend: Tight supplies willcontinue in the first half, but turn hopeful in the second half
 Russia–Ukraine issue: It is difficult to predict the impact on ourbusiness
 Not incorporated into business plan COVID-19 trend: Reduced impact on economic activity
 Minimal impact on business performance
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Assumptions of Business Plan for Fiscal YearEnding March 31, 2023 (2/2)
 Achieve business growth that exceeds market growth
Domestic IT service market forecast: 4.1%
(CAGR :2021→2025)

WW semiconductor market forecast: 10.4%（2021→2022)(1M USD)

123,394

123,537

130,099

136,349(1M USD)

144,689555,893

613,523440,389

2021CY

2022CY

2023CY

2024CY

2025CY

2020CY

Source: Graph created by Tokyo Electron Device based on Gartner research.

Gartner®, Forecast: IT Services, Worldwide, 2020-2026, 1Q22 Update,
Colleen Graham et al., 30 March 2022, End-User Spending by Geography
GARTNER is a registered trademark and service mark of Gartner Inc. and affiliatedcompanies in the US and other countries, and is used with permission from Gartner. All
rights reserved.
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2021CY

2022CY

Source: WSTS, News Release, 18 March 2022

Forecast of Financial Results for the Fiscal YearEnding March 31, 2023
FY 2022

FY 2023(Million yen)

YoY Change

Full Year

1st Half
Forecast

2 nd Half
Forecast

Full Year
Forecast

ChangeRate of
Change179,907

94,500105,500

200,000

20,092

11.2%

CN Business

23,46011,35014,30025,650

2,189

9.3%

EC Business(Consolidated)

156,446

83,15091,200174,350

17,903

11.4%

EC Business

146,22978,05084,800162,850

16,620

11.4%

PB Business

10,217

5,100

6,400

11,500

1,282

12.6%

Ordinary income(income ratio)

7,318

3,650

4,850

8,500

1,181

16.2%

Net income(income ratio)

5,085

2,540

3,360

5,900

814

16.0%

Net sales(4.1%)(2.8%)(3.9%)(4.6%)(2.7%)(3.2%)*Net income is net income attributable to owners of the parent
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

20(4.3%)(3.0%)

Forecast of Financial Results for the Fiscal YearEnding March 31, 2023: Changes in Net Sales
FY 2022Net Sales

EC Business(Distribution)

EC Business(PB Business)＋¥2.2 bill. +¥16.6 bill.

＋¥1.3 bill.

CN Business

FY 2023Net Sales¥200.0 bill.
¥179.9 bill.

*Amounts are rounded off

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21

Key Businesses for Achieving VISION 2025
Profit growth – Promoting the next promising businesses

CN Business Security-related products and services
 AI-related services (AI evaluation and demonstration)

EC Business Design & Manufacturing Services
 Cloud services (Azure)

PB Business Medical / specimen inspection equipment, ODM business Enhanced performance of robot vision
 Expanded sales of manufacturing systems overseas*ODM (Original Design Manufacturing): The business of providing independently developed and manufactured products
under another company’s brandCopyright © Tokyo Electron Device LTD. All Rights Reserved.

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CN Business Topics
 Security-related products
and services

 AI-related services(AI evaluation and demonstration)*TED-SOC (TED - Security Operation Center): A 24-hour, 365-day security operation support service provided by TED
to protect against cyber attacks
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PB Business Topics
Medical / specimen inspection equipment, ODM businessTokyo Electron Device
License and registration procedures for
medical equipment business(ODM)
completed in Feb 2022
Development
partner

 Sales and rental business Manufacturing and sales
business
 Manufacturing business TED Engineering Center:
Planning, design, and development
 TED Nagasaki:
Manufacturing and quality control
 TED:
Sales and after-sales service

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24

Equipment
specifications
Medicalequipment
manufacturer
Supplyequipment

Specimen inspection equipment(product image)

Hospitals
Inspection
companies

Medium-Term Management Plan: Results and Plan
VISION2020

VISION2025

Net sales (\100 mill.)
17.2%

Ordinary income ratio
9.5%

More than 15.0%

11.4%
8.8%

(¥100M)
2,000

6.8%

1,116

1.2%

4.2%

1.4%

Net sales:
2,000 ±10％

1,799

4.3%
1,598

1,178

ROE:

Shareholders’ equity

ROE(Shareholders’ equity)

3.2%

18.2%

1,318

1.7%

1.0%

1,410

2.2%

1,353

2.6%

1,432

3.2%

4.1%

Ordinary income
ratio:
More than 5.0%

4.3%

0

0.0%

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023(Forecast)

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25

・・・

FY2025(Forecast)Dividends Per ShareFY 2021

FY 2022

FY 2023

Interim¥40¥105(planned) ¥105

Year-End

¥85

¥100

(planned) ¥135

Dividend Payout Ratio

93

90

40.3

40.1

205

240 (yen)135
 Dividend policy Dividend payout ratio:
40%

125
105
40.0

40.1

40.2 (%)

0

0.0%

FY2019FY2020

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FY2021

FY2022

FY2023 (planned)26

 Stable, continuous
dividends

Cautionary Notes Regarding this Document
The forward-looking projections in this document were developed based on
information available at this time. Please note that the Company’s actual future
results may differ from those indicated in this document due to various factorsthat have direct and indirect impacts on the Company’s results.
If any material changes are made, the Company will announce them at that time.
The company names, product names, service names, and logos used in thisdocument are the trademarks or registered trademarks of their respective holders.
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

27

Supplementary Materials

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DeviceDevice
LTD. All
RightsReserved.
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All Rights
Reserved.

28

Medium-Term Management Plan VISION 2025
BUSINESS ENVIRONMENTOUR MISSION

Society 5.0 to Arrive

DRIVING DIGITAL TRANSFORMATION

Highly efficient smart society amid
Slow Economic Growth

Providing products and services that canachieve digital transformation,
thus contributing to the sustainable
development of a highly efficient smart
society

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

29

OUR VISION
To become a manufacturer with technology
trading company functions
Evolving technology
trading company functionsThe kind of manufacturer
we want to be

Business model that will generate
profits from data, service, andstock businesses
Maintain and expand customer
base that contributes toward
growth of business as amanufacturer
Build a base for stable income

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30



Manufacturing systemmanufacturer



Original design manufacturer
(ODM)



Design development division basedon providing solutions to issueHighly efficient smart factories

VISION 2025 Financial Model
Pursuing Sustainable Growth with Profit and Revenue
Growth (Profit Growth Outpacing Revenue Growth)Fiscal 2025

¥200.0 billion ±10%
 Ordinary income ratio > 5 ％
 ROE
>15 %
 Net sales

Percentage of
total sales

Ordinary income ratio

CN Business20 %＞ 13 %EC Business

70 %

＞ 2%

PB Business

10 %

＞10 %

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CN Business: Sales Component Ratios by
Product Category
Network-Related Products

FY 202135%

FY 2022

33%

Security-Related Products
Storage-Related
Maintenance & Monitoring Services
Products

18%
18%

7%

40%

10%

39%

Product

Rate of
ChangeNetworkrelated
products▲10.2%

Weak sales to system integrators and telecommunications carriers
Strong switch sales to data centers, and increased sales togovernment agencies

Arista Networks
F5 Networks
Extreme Networks

Storagerelated
products▲4.7%

Decrease in SAN switches to system integrators due tocancellation of agency agreements
Decrease in large sales to enterprises
Increase in flash storage to data centers

Pure Storage
Dell Technologies

Securityrelated
products

40.9%

Higher security demand for remote access and cloud services

Netskope
Nutanix▲0.8%

Decrease in sales due to application of new accounting standards
Increase in equipment maintenances provided to enterprises andtelecommunications carriers
Delayed start of service due to product delivery delays

TED

Maintenance &monitoring
services

Main Causes

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32

Main SuppliersEC Business: Sales Component Ratios by ProductCategory
Memory ICs

FY 2021
FY 2022

Analog ICs

Micro Processors

Logic ICs

30%

25%

14%

36%

21%

16%

Software & Services

Boards, Electronic
Components, etc.

4%

14%

4%

12%

PB

5% 8%
5% 6%

Product

Rate of
ChangeAnalog ICs

57.8%

Industrial equipment increased substantially due to expansion of
trade rights

TI / NXP

Microprocessors

10.9%

Industrial equipment and computer peripherals increased

NXP / TI / Intel / Infineon

Logic ICs

48.5%

Automotive and communication base stations increased

TI / NXP / Lattice / MaxLinear /Infineon/ Socionext /Excelitas

Memory ICs

31.6%

Automotive and industrial equipment increased

Infineon

Boards,electronic
components,
etc.

11.0%

Computer peripherals decreased due to the application of new
accounting standards
Industrial equipment decreased due to the cancellation of agency
agreements
Increase for communication base stations

NXP / Western Digital /Hagiwara Solutions / ams /Advantec

Software &services

13.5%

Communications devices and cloud business increased

Microsoft / McAfee

PB

11.0%

Design & Manufacturing Services and TED Nagasaki increased

TED / TED Nagasaki / FAST

Main Causes

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33

Main SuppliersEC Business: Sales Component Ratios by
Application

Communications Devices
Computers andConsumer
Peripherals
DevicesIndustrial Equipment

Automotive
Equipment

FY 2021

48%

20%

18%

7%

7%

FY 2022

48%

19%

17%

9%

7%

Application

Rate of
ChangeMain Uses

TED Trends
Increases in analog ICs and logic ICs due to expansion of trade
rightsIncrease in boards for semiconductor manufacturing
equipment and broadcasting equipment
Decrease in electronic components due to cancellation of
agency agreements

Industrial
equipment

48.2%

Medical equipment, broadcasting equipment, surveillancecameras, FA equipment, measuring equipment, industrial
robots, machine tools, semiconductor manufacturing
equipment, inverters

Automotive
equipment

19.5%

Car navigation systems, car audio equipment, autobodyrelated products

Increase in logic ICs due to increased market demand
Increases in analog ICs and processors due to expansion of
trade rights

Computers
andperipherals

18.5%

Multifunctional printers, projectors, office equipment,
storage, servers, PCs and peripheral devices, POS terminals

Increase in processors for PC servers due to increased
inventories of parts and materials
Increase in logic ICs for projector and MFPs due to expanded
trade rights
Decrease in electronic components due to application of new
accounting standards

Communications Devices

6.8%

Routers, transmission equipment, base stations

Increases in electronic components, analog ICs, and logic ICs
for base stations

Consumer
Devices

7.0%

Digital cameras, digital video cameras, TVs/DVD/AV
equipment, home gaming consoles, remote controls, major
home appliances

Increase in analog ICs for game consoles and electronic
musical instruments

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34

Product Categories
Category
Network-related
products

CN
Business

Functions

Network load distribution devices
Ethernet switches

Distribute Internet connection loads
Switching hubs

Storage-related products

Flash storage

Connect to and store large volumes of data at highspeed

Security-related products

End points, networks, cloudProtect computer systems, networks, data, etc. fromattacks, damage, and unauthorized access

Maintenance & monitoring
services

Device maintenance services and security
monitoring services

Analog ICs

Analog ICs

ICs used in common in various applications

Micro processors

CPUs, DSPs

Brains of electronic devices, calculation and control
functions

Image processing ICs Communications andnetwork applications ICs
ASIC, PLD

ICs with packaged logic circuits, special-purpose ICs
made for particular applications, special ICs madeaccording to customer specifications

SRAM, FRAM, MRAM
Flash memory

Memory ICs, readable/writable memory products, readonly products

Boards, power supplies, optical components

ICs on printed circuit boards, power supplies, productswith mounted connectors and other components(boards)

Software, cloud services

Software embedded in industrial equipment forenterprises
Provision of subscription services

Design and mass production contract
services, private brand products

Design, development and mass production of boards
according to customer specifications
Devices for manufacturing industries

Logic ICsEC
Business

Main Products

Memory ICs
Boards, electronic components,
etc.
Software & services

PB
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35