Financial Briefing for the Fiscal Year
Ended March 31, 2024

May 1, 2024

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

AgendaFinancial Report
Corporate Director / Senior Executive Vice President
Yukio Saeki

Forecast of Financial Results for the Fiscal Year Ending
March 31, 2025
Medium-Term Management Plan VISION2030
President & Representative Director
Atsushi Tokushige

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2

Financial Report

Corporate Director / Senior Executive Vice President
Yukio Saeki

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3

Summary : Financial Results
for the Fiscal Year Ended March 31, 2024
Year-on-Year Comparison: Higher sales and income
Net sales:
1.1% increase
Ordinary income:
11.6% increase
Net income attributable to owners of parent: 13.8% increase

Achieved record financial results
Reached VISION 2025 targets*1 for second consecutive year*2
Achieved forecast ordinary income ratio and ROE*3 for fiscal year
ended March 31, 2025 one year ahead of schedule※1 FY2023／FY2024※2 Net Sales:¥200.0 bill±10%, Ordinary income ratio:5.0%, ROE:15.0%※3 Net Sales:¥250.0 bill,
Ordinary income ratio:5.5%, ROE:20.0%
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

4

Summary of Financial Results: Comparison with Prior Year
(Million yen)

FY 2023

FY 2024

FY 2024
Forecast

Change240,350

242,888

2,538

Cost of sales

206,106

205,720▲385

Gross profit

34,24337,1682,924

20,016

21,7391,722

14,227

15,428

1,201

268
2,016

414
1,920

146
▲95

Ordinary income

12,47813,922

1,443

13,500Net income

8,778

9,986

1,208

9,770

Number of employees

1,318

1,357

39

Net sales

Selling, general &administrative expenses

Operating income
Non-operating income
Non-operating expenses

250,000*Net income is net income attributable to owners of the parent.
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Summary of Financial Results: Change in Net Sales
FY 2023Net Sales

CN Business

EC Business(Distribution)+¥3.7 bill.

▲¥0.9 bill.

EC Business(PB Business)

FY 2024Net Sales▲¥0.2 bill.

¥242.9 bill.

¥240.4 bill.

*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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6

Sales and Income by Segment••

CN Business: Security-related and maintenance & monitoring services, etc. stock businesses and networkrelated products performed well. Income ratio improved and sales and income grew due to handling of
foreign exchange rates
EC Business: Despite expansion of commercial rights, sales decreased due to stagnation of Chinese market
and the shift to direct manufacturer-to-consumer sales by semiconductor. Profit was flat.
(Million yen)

FY 2023Net Sales

FY 2024

Segment
IncomeNet Sales

ChangeSegment
IncomeChangeComputer Networks(CN) business

29,2552,019

32,978

3,723

3,463

1,443

Electronic Components(EC) business

211,094

10,459209,909 ▲1,184

10,459▲0

Total

240,350

12,478242,888

13,922

1,443

2,538

*Segment income is ordinary income*In the segment categories, the PB Business is included in the EC Business
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

7

Segment Information: CN Business• Network-Related Products: Sales to data centers & cloud business operators and enterprises
were steady• Security-Related Products, etc.: Sales to system integrators were strong• Maintenance & Monitoring Services: Sales across the equipment maintenance were strong
Network-Related
Products

Sales
Component
Ratios by
Product
Category

Storage-Related Security-Related Products,etc.
Products
Maintenance & Monitoring Services

FY 2023

36%

17%

FY 2024

35%

13%

11%

36%

14%

38%
Data Centers & Cloud Business Operators

Sales
Component
Ratios by
Field

System Integrators

Enterprises & Others

FY 2023

39%

26%

FY 2024

37%

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29%
8

Telecommunications carriers

23%

12%
24%

10%

Segment Information: EC Business•••Industrial equipment: Decreased substantially due to lower demand for industrial equipment anddecreased sales of analog ICs due to the shift to direct manufacturer-to-consumer sales
Automotive equipment: Demand was steady. Sales of processors and memory ICs increased
substantially due to expansion of commercial rights
Computers and peripherals: Sales of communication equipment and consumer appliances andelectronics were weak
Logic ICs

Sales
Component
Ratios by
Product
Category

FY 2023

FY 2024

Analog ICs

Micro Processors

35%

19%

17%

24%

17%

31%

Boards, Electronic Components, etc.
Software & services
Memory ICs

4

%

6%

Computers and Peripherals

Sales
Component
Ratios by
Application

FY 2023

FY 2024

Industrial Equipment

Automotive Equipment

48%

21%

44%

33%

4

14%
11%

%

7%

4 7%

%

Communications Equipment
Consumer Appliancesand Electronics

13%

10%
9%

1
7% % Others

2
7% 5% %※ The categorization for Sales Component Ratios by Application for the EC Business has been change
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

9

PB

Consolidated Overseas Subsidiaries: Net Sales—EC Business• Computers and peripherals: Sales for industrial equipment were weak
• Sales for automotive equipment expanded
FY 2023
Consolidated overseas
subsidiaries net sales(million yen)
Consolidated overseas
subsidiaries net sales
ratio
Consolidated overseas
subsidiaries net sales($1M)
Exchange rate (yen)FY 2024

Change52,35851,442

24.8%

24.5%

386

355

135.50144.59Rate of
Change

▲916

▲1.8%

▲30

▲7.9%

*The net sales ratio is the ratio to EC Business net sales.
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10

PB Business: Net Sales—EC Business• TED: Sales of wafer inspection systems contributed. Design & manufacturing services for
medical equipment were steady• TED Nagasaki: Sales for electrical and industrial equipment were strong and sales forsemiconductor manufacturing equipment were reduced• FAST: Sales of inspection systems were weak
(Million yen)

FY 2023

FY 2024

PB business net sales

14,49814,251

Net sales ratio

6.9%

6.8%

Change▲247

Rate of
Change▲1.7%*The net sales ratio is the ratio to EC Business net sales.

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11

Balance Sheet
AssetsLiabilities & Net Assets

Inventories increased with expansion of commercial rights, etc.
Goodwill and intangible assets increased due to businessacquisition••

143,452

162,567Interest bearing liabilities increased due to increased inventories
Net assets increased due to increased profits••

143,452(million yen)

6,867

Cash & deposits

61,475

Notes and accounts
receivable

6,538

0

22,690Notes and accounts
payable52,101

Interest-bearing
liabilities

41,585

Other liabilities

38,997

46,190Net assets

2023.3.31

2024.3.31

45,65357,070Inventories

21,5759,143

25,923

Other current assets

11,231

Non-current assets

2023.3.31

2024.3.31

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(million yen)

20,21462,53843,657

162,567

38,587120

Statement of Cash Flows
2023.3.31
Balance of
CashOperating
C/F

Investment
C/F

Financial
C/F

Exchangedifferences

2024.3.31
Balance ofCash(Million yen)

6,442

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

301▲2,695

2,529

13

179

6,757

Changes in Orders Received• CN Business: IT investment situation was steady. There were large orders in 3Q and 4Q of
FY2024• EC Business: Order decrease continued from 3Q of FY2023 due to rebound of long-term orders
EC Business

76,983

CN Business

7,955

66,827

81,12579,767 80,096

11,605 70,925

12,926

7,086

8,412

60,540 6,090

54,042

6,404

8,918

43,96537,030 6,973
7,668

54,13629,362(Million yen)

60,73669,027

69,52062,512

66,84149,568 50,170
8,623

6,513

43,667

9,867

45,12440,94443,6564Q

1Q
FY202437,30849,43010,7296,359

73,01036,99254,80644,93838,701

0

2Q
FY2021

3Q

4Q

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1Q
FY2022

2Q

3Q

4Q

1Q
FY2023
14

2Q

3Q

2Q

3Q

4Q

Forecast of Financial Results
for the Fiscal Year Ending March 31, 2025

President & Representative Director
Atsushi Tokushige
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15

Summary : Forecast of Financial Results
for the Fiscal Year Ending March 31, 2025
Will exceed targets set in VISION 2025 for third consecutive year, butfinancial results will fall short of the previous fiscal year
Adjustments will continue, bottoming out in 1st half of FY2025 and shift to arecovery trend will occur in 2nd half of FY2025
Main background:⚫ High level of inventory in supply chain（prolonged by stagnant market conditions in
China）⚫ Shift to direct manufacturer-to-consumer sales by some semiconductor
manufacturers（big impact in 2nd half）⚫ Inflow of new customer commercial rights（full-scale from 2nd half ）Copyright © Tokyo Electron Device LTD. All Rights Reserved.

16

Assumptions of Business Plan
FY2024E
C・P
B

1st Half

2nd Half

1st Half

2nd Half

Growth Period

Adjustment Period

Bottoming Out Period

Recovery Period

Semiconductor, wafer
market conditions

High level of inventory in supply chain

To inventory level optimization

Prolonged stagnation

Recovery trend

Sluggish due to impact of market conditions in China

Recovery trend

Market conditionsin China
Industrial equipment
marketAutomotive equipment
marketCommercial rights

FY2025

Change to steadyContribution of new customer
commercial rights

Full-scale direct manufacturer-toconsumer sales

Change to steadyContribution of new customer
commercial rights

Market trends

Change to steady IT market, mainly in security

Change to steady IT market, mainly in security

New distributor
agreements

Acquisition of new agreements

Acquisition of new agreements

Exchange rate trends

Year-on-year change to weaker yen

Year-on-year change to weaker yen

Net sales¥242.8 bill

¥230.0 bill

Ordinary income ratio

5.7 %

5.5 %

ROE

25.1 %

19.2 %CN

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17

Forecast of Financial Results for the Fiscal YearEnding March 31, 2025
FY 2024

FY 2025(Million yen)
YoY Change

Full Year

1st Half
Forecast

2nd Half
Forecast

Full Year
Forecast

242,888

110,000

120,000

230,000 ▲12,888▲5.3%

CN Business

32,97814,85017,80032,650

▲328

▲1.0%

EC Business(Consolidated)

209,909

95,150102,200

197,350▲12,559▲6.0%

EC Business

195,658

87,38093,820181,200▲14,458▲7.4%

PB Business

14,251

7,770

8,380

16,150

1,898

13.3%

Ordinary income(income ratio)

13,9225,500(5.0%)

7,200(6.0%)

12,700▲1,222▲8.8%

Net income(income ratio)

9,986

3,800

4,900

8,700

▲1,286 ▲12.9%

Net sales(5.7%)(4.1%)(3.5%)(4.1%)*Net income is net income attributable to owners of the parent
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18(5.5%)(3.8%)

ChangeRate of
ChangeForecast of Financial Results for the Fiscal YearEnding March 31, 2025: Changes in Net Sales
FY 2024Net Sales

CN Business

EC Business(Distribution)¥242.9 bill.

▲¥0.3 bill.

▲¥14.5 bill.

EC Business(PB Business)

FY 2025
Net Sales▲¥1.9 bill.

¥230.0 bill.

*Amounts are rounded off
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19

Initiatives for Profitable Growth
Promotion of promising businesses with a focus on strengthening
manufacturer functions and service business
CN BusinessStart handling new products・Strengthen marketing by TED America

EC Business

PB Business

Expand handling of products

Strengthen wafer inspection
systems business・Acquire new customer commercial
rights・Promote new supplier agreements

Promote solutions business（coordination with PB）
・Systems development services using
products handledExpand stock business・In-house services
・Technical consulting services

Strengthen cloud AI and edge
AI business・Provide services and solutions with
Microsoft as the core

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20・Full-scale start of wafer inspections
systems delivery
・Technology sharing
・Sales promotion to wafer
manufacturers in Japan and overseas

Strengthen TED Nagasaki
manufacturing line
・Increase production capacity throughcapital expenditure

Strengthen Vision automation
system・Add TriMath functionality

Strengthen Wafer Inspection System Business
Full-scale start of delivery of silicon wafer inspection system
Commercialization and overseas expansion of SiC inspection system
To FY 2024
Silicon wafer
inspection system
Main applicable products:
Semiconductor products in general

Compound semiconductor
wafer
inspection system
Main applicable products:

Power semiconductors/sensors/filters, etc.

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

FY 2025

Acquired business from
Nippon Electro-Sensory
Devices Corporation⚫ Full-scale start of deliveryof silicon wafer inspection
system(October 2023)⚫ Commercialization andoverseas expansion of SiC
inspection system⚫ Started sales (2020)⚫ Strengthened functions

Increased number of cassettes andwafer diameter sizes⚫ Expanded inspection
targets⚫ Started overseas sales
21⚫ Development of field
support system⚫ Promotion of R&D

From FY 2026

⚫ Development of nextgeneration products
Strengthen businesssynergies

Shareholder Return: Dividend
Dividends per share
FY 2024
Interim

Dividends / Dividend Payout Ratio(Yen)

Dividend Payout Ratio（％）

FY 2025※ 61

Dividends Per Share（yen）

52
200.0

Year-End

74

65

Full-year

135

117

40.0%

40.1%

40.1%

40.5%

40.4%

45.0%

40.0%

118.3

*Conducted a share split at a ratio of three shares for one ordinary
share on October 1, 2023
(Dividend amounts prior to September 2023 are shown assumingthat the share split had taken place)

35.0%

135
117

30.0%

25.0%

65

68.3

20.0%

15.0%

41.7

10.0%

Dividend policy

52⚫ Dividend payout ratio: 40%

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0.0%

0.0

FY2021⚫ Stable, continuous dividends

FY2022

FY2023

FY2024FY2025(Planned)*Conducted a share split at a ratio of three shares for one ordinary
share on October 1, 2023
(Dividend amounts prior to September 2023 are shown assumingthat the share split had taken place)

22

5.0%

Initiatives to Strengthen Group Management⚫ Introduction of the Corporate
Officer System⚫ Establishment of Title, Chief
Executive Office (CEO)⚫ Office Relocation＜Shibuya Sakura Stage＞

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23

Medium-Term Management Plan VISION2030

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VISION2030 MISSION

Address social issues through leading-edge
technology, primarily semiconductors and IT,
and to contribute to the sustainable development ofsociety by offering solutions to those issues thathave value beyond expectations

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

25

VISION2030 VISION

A company that solves latent social issues
with the capabilities of a manufacturer anda technical trading company

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26

VISION 2030 Companywide Policy
Aim to solve potential social issues (customer issues) with the power of being a
manufacturer and technology trading company⚫ All business units will work on in-house products (services) development and create Groupsynergies to propose solutions to problems with value that exceeds expectations⚫ The Technology Trading Company Department will acquire new distributor agreements andcustomer commercial rights to strengthen marketing to address potential issues⚫ Actively utilize M&A to quickly establish a business foundation that enables problem-solving

Take actions that contribute to sustainable profit growth⚫ Actively invest in in-house products (services) development that can differentiate theCompany’s products.
⚫ Transition from a flow-type to a stock-type service business⚫ Invest to increase medium- to long-term profit (research and development, humanresources recruitment, employee training, etc.)

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27

Management Policy by Business（Overview)

CN
Business⚫ Understand customer needs and offer solutions and services that support customer’s DX⚫ Support customer’s use of digital technology and increase customer satisfaction

EC
Business⚫ Focus on growth markets such as industrial equipment, automotive-related equipment,
cloud services, and the OT security field⚫ Leverage specialized semiconductor knowledge and develop a solutions-based business

PB
Business⚫ Provide products centered on wafer inspection systems globally with measurement andinspection technology at the core
⚫ Strengthen medical ODM and board OEM services by leveraging semiconductor-related
technology and high-quality development and manufacturing infrastructure

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28

VISION 2030 Financial Model（Target Management Indicators）
Pursuing Sustainable Profit Growth with Profit and Revenue Growth(Profit Growth Outpacing Revenue Growth)Fiscal 2030
⚫ Net sales⚫ Ordinary income ratio⚫ ROE¥300.0 ~ ¥350.0 billion≧ 8％≧ 20 %

Percentage of
total sales

Ordinary income ratio

CN Business

15 %

12 %

EC Business

75 %

7%

PB Business

10 %

10 %

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29

Review and Outlook of the Medium-Term Management Plan

VISION 2030
VISION 2025
VISION 2020
Technology trading
company×
Manufacturer
functions
Build a business that is anengine for growth

To become amanufacturer withtechnology trading
company functions
Launch growthbusinesses

Net Sales：¥300.0

FY2025 (Planned)
Net Sales：¥230.0 billion
Ordinary Income ratio：5.5 %ROE：19.2 %

2016

2022

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Accelerate profit growth
FY2030 (Target Amount)

Net Sales：¥143.2 billion
Ordinary Income ratio：3.2 %ROE：11.4 %2021

Solve social issues withthe power of being a
manufacturer andtechnology trading
company2025
30~ ¥350.0 billion
Ordinary Income ratio：≧8.0 %ROE：≧20.0 %
2026

2030

Capital Policy
Investment for sustainable growth

GrowthInvestment⚫ Aggressive investment for technology development andbusiness expansion (including M&A)
⚫ Investment in internal and external DX to strengthen
competitiveness⚫ Actively invest in human resource development

Long-term high returns due to profit growth

Shareholder
Return⚫ Achieve sustainable profit growth and improve enterprise value⚫ Shareholder returns according to financial results (dividend
payout ratio: 40% target)

Strengthen financial structure and appropriate
financial leverage

Financial
Soundness⚫ Equity ratio: 40% or more
⚫ ROE: 20% or more
⚫ Maintain appropriate inventory levels

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31

Further improvementof enterprise value
through sustainableprofit growthSustainability Initiatives
Fundamental
Policy⚫ Contribute to the sustainable development of a more prosperous society byproviding a variety of solutions through our business activities.
⚫ Aim for the sustainable development of the Group and the enhancement ofcorporate value by engaging in solutions to material issues

Material issues
1.Leverage the resources that the Company has accumulated with a focus on electronics and IT to contribute to therealization of a sustainable society
2.With respect for fundamental human rights at the core, create work environments and personnel systems that facilitate
work and provide meaningful work and pursue the sustainable development of the Company
3.Mitigate environmental burdens (environmental risks) that occur as a result of business activities and strive to maintaina sustainable relationship between society and the Company

Human Capital / Diversity⚫ Develop human resources who can pursue customer
satisfaction from a global perspective⚫ Create an environment that supports employees’ desire to
improve and develops their individual abilities⚫ Focus on developing next generation leaders
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

Climate Change⚫ Aim for carbon neutrality in FY2050 and set target for
FY2030 (50% reduction compared to FY2021)⚫ From October 2023, the Engineering Center (Tsuzuki,
Yokohama) will switch to electricity derived from virtually
renewable energy.
32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 fromthose indicated in this document due to various factors that 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 this document are
the trademarks or registered trademarks of their respective holders.

Note : This document has been translated from the Japanese original for reference purposes
only. In the event of any discrepancy between this translated document and the Japaneseoriginal, the original shall prevail.

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33

Supplementary Materials

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LTD. AllLTD.
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34

List of Supplementary Materials⚫ Medium-Term Management Plan VISION2025⚫ Foreign Exchange Losses

P36-38
P39⚫ Financial Highlight

P40-41⚫ CN Business: Sales Component Ratios by Product Category

P42⚫ EC Business: Sales Component Ratios by Product Category

P43⚫ EC Business: Sales Component Ratios by Application

P44⚫ Product Categories

P45⚫ Change in Balance of Orders Received

P46

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35

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

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36

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, and stockbusinesses
Maintain and expand customer basethat contributes toward growth ofbusiness as a manufacturer
Build a base for stable income

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

⚫
⚫
⚫
⚫

37

Manufacturing system manufacturer
Original design manufacturer (ODM)
Design development division based onproviding solutions to issue
Highly efficient smart factories

Medium-Term Management Plan: Results and Plan
VISION2020

VISION2025

Net sales (100 million yen)

26.1%

Ordinary income ratio
17.2%

ROE (Shareholders’ equity)

3.2%

4.2%

4.3%

6.8%
1,598

1,116

1.2%

1,178

1.4%

1,318

1.0%

1.7%

9.5%

8.8%

11.4%

25.1%
19.2%

2,403

2,428

2,300

2,000
1,799

1,410

2.2%

1,353

2.6%

15.0%

±10%

1,432

3.2%

4.1%

5.2%

5.7%

5.5%

5.0%

0

0.0%

FY2015FY2016FY2017

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

FY2018FY2019FY2020

FY202138

FY2022

FY2023

FY2024FY2025(Forecast)

InitialTargets

Foreign Exchange Losses
Forward exchange contracts are used to hedge
foreign exchange risks
When yen weakening (image)

Recording of sales/purchases: Recorded rate (rate on occurrence)(Profit & Loss Statement)

Not match

Gross profit
increase/decrease due
to rate difference

Increase in gross profit due to exchange
rate difference⊕

Settlement of deposits/payments:
Contract rate

Costs, etc.

OffsetOffsetGross profit

Difference from contract rate occurs
at time of settlement ofdeposits/payments

Foreign exchange
gains/losses recorded

Impact of exchange rate fluctuations on ordinary
income is minimal

Foreignexchangeloss
Ordinary
income* However, forward exchange contract losses, i.e. interest rate discount costs due to the difference between Japanese andU.S. interest rates, are recorded as foreign exchange losses.
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

39

Financial Highlight（1/2）(Million yen)

FY 2022

FY 2024

FY 2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

41,00941,77045,11252,01450,67761,09164,12764,45359,01260,68560,04963,1404,455
36,554

5,547
36,223

5,477
39,634

7,980
44,034

5,407
45,2707,263
53,828

7,191
56,935

9,393
55,0597,099
51,912

7,253
53,431

6,587
53,462

12,037
51,102

Cost of sales

35,37736,14038,69444,05643,24752,45955,40954,99050,091

51,59451,04952,984Gross profit

5,632

5,629

6,417

7,958

7,430

8,632

8,717

9,463

8,921

9,090

8,999

10,156

13.7%

13.5%

14.2%

15.3%

14.7%

14.1%

13.6%

14.7%

15.1%

15.0%

15.0%

16.1%

Selling, general and administrative expenses

4,173

4,332

4,441

4,560

4,472

5,016

4,881

5,645

5,292

5,565

5,292

5,588

Operating income

1,459

1,297

1,976

3,397

2,957

3,615

3,835

3,817

3,628

3,524

3,707

4,568

3.6%

3.1%

4.4%

6.5%

5.8%

5.9%

6.0%

5.9%

6.1%

5.8%

6.2%

7.2%

Non-operating income

57

79

24

27

39

120

35

72

69

116

164

64

Non-operating expenses

321

91

222

368

836

688

585

-94

554

530

408

427

Ordinary income

1,195

1,285

1,778

3,057

2,160

3,048

3,285

3,984

3,143

3,110

3,463

4,204

Profit rate
EC Business

2.9%
386
809

3.1%
532
753

3.9%
320
1,458

5.9%
995
2,062

4.3%
381
1,779

5.0%
522
2,525

5.1%
131
3,153

6.2%
984
3,000

5.3%
579
2,563

5.1%
683
2,426

5.8%
712
2,750

6.7%
1,487
2,717

Extraordinary income

1,921

0

0

140

0

0

0

0

4

0

0

0

Extraordinary losses

0

114

3

1,351

0

2

0

6

0

1

32

4

3,117

1,171

1,775

1,846

2,160

3,045

3,284

3,978

3,147

3,109

3,430

4,200

7.6%

2.8%

3.9%

3.5%

4.3%

5.0%

5.1%

6.2%

5.3%

5.1%

5.7%

6.7%

2,176

805

1,257

1,249

1,501

2,147

2,325

2,904

2,210

2,390

2,544

2,935

5.3%

1.9%

2.8%

2.4%

3.0%

3.5%

3.6%

4.5%

3.7%

3.9%

4.2%

4.6%

1,851

794

1,249

1,189

1,479

2,104

2,316

2,876

2,186

2,364

2,519

2,915

4.5%

1.9%

2.8%

2.3%

2.9%

3.4%

3.6%

4.5%

3.7%

3.9%

4.2%

4.6%

Net sales
CN Business

EC BusinessProfit rate

CN Business

Net income before income taxes
Profit rate
Net income

Profit rate
Net income attributable to owners of parent
Profit rate
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

40

Financial Highlight（2/2）
1Q(Million yen)

2Q

1st Half
Change111,769
35.0%
12,67026.7%

FY 2023
3Q
Change64,127
42.1%
7,191
31.3%

64,453
9,393

Change
23.9%
17.7%

4Q

2nd Half
Change128,580
32.4%
16,58423.2%

Full Year
Change240,350
33.6%
29,255
24.7%

Net sales
CN Business

50,677
5,407

Change23.6%
21.4%

61,091
7,263

Change46.3%
30.9%

EC Business

45,27023.8%

53,828

48.6%

99,09836.2%

56,935

43.7%

55,05925.0%

111,99533.9%

211,09434.9%

43,247
7,430

22.2%
31.9%

52,459
8,632

45.2%
53.3%

95,706
16,062

33.8%
42.6%

55,409
8,717

43.2%
35.8%

54,990
9,463

24.8%
18.9%

110,399
18,181

33.4%
26.5%

206,106
34,243

33.6%
33.6%

4,472

7.2%

5,016

15.8%

9,489

11.6%

4,881

9.9%

5,645

23.8%

10,52716.9%

20,016

14.3%

2,957
2,160
381
1,779
2,160
1,501

102.6%
80.7%-1.3%
119.7%-30.7%-31.0%

3,615
3,048
522
2,525
3,045
2,147

178.6%
137.0%-2.0%
235.3%
159.9%
166.4%

6,573
5,208
903
4,305
5,206
3,648

138.4%
109.9%-1.7%
175.4%
21.4%
22.3%

3,835
3,285
131
3,153
3,284
2,325

94.1%
84.7%
-58.8%
116.3%
85.1%
85.0%

3,817
3,984
984
3,000
3,978
2,904

12.4%
30.3%
-1.1%
45.5%
115.5%
132.5%

7,653
7,270
1,116
6,153
7,263
5,230

42.4%
50.3%
-15.1%
74.8%
100.6%
108.6%

14,227
12,4782,019
10,45912,469
8,879

75.0%
70.5%
-9.6%
105.7%
57.6%
61.7%

1,479
1Q

-20.1%

2,104
164.9%
2Q
Change60,685
-0.7%
7,253
-0.1%
53,431-0.7%
51,594
-1.6%
9,090
5.3%
5,565
11.0%
3,524
-2.5%
3,110
2.0%
683
31.0%
2,426
-3.9%
3,109
2.1%
2,390
11.3%
2,364
12.3%

Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating income
Ordinary income
CN Business
EC Business
Net income before income taxes
Net income
Net income attributable to owners ofparentNet sales
CN Business
EC Business
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Ordinary income
CN Business
EC Business
Net income before income taxes
Net income
Net income attributable to owners of parent

59,012
7,099
51,91250,091
8,921
5,292
3,628
3,143
579
2,563
3,147
2,210
2,186

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

Change
16.4%
31.3%
14.7%
15.8%
20.1%
18.3%
22.7%
45.5%
52.1%
44.1%
45.7%
47.3%
47.8%

3,584
35.5%
1st Half
Change119,698
7.1%
14,353
13.3%
105,3446.3%
101,686
6.2%
18,011
12.1%
10,858
14.4%
7,153
8.8%
6,253
20.1%
1,263
39.9%
4,990
15.9%
6,256
20.2%
4,601
26.1%
4,551
27.0%

41

FY 2024 85.5%
2,316
3Q
Change60,049
-6.4%
6,587
-8.4%
53,462-6.1%
51,049
-7.9%
8,999
3.2%
5,292
8.4%
3,707
-3.4%
3,463
5.4%
712
440.4%
2,750-12.8%
3,430
4.4%
2,544
9.4%
2,519
8.8%

2,876
141.8%
4Q
Change63,140-2.0%
12,03728.2%
51,102-7.2%
52,984-3.6%
10,156
7.3%
5,588
-1.0%
4,568
19.7%
4,204
5.5%
1,487
51.1%
2,717
-9.4%
4,200
5.6%
2,935
1.1%
2,915
1.4%

5,193
112.9%
2nd Half
Change123,190-4.2%
18,625
12.3%
104,565-6.6%
104,034-5.8%
19,156
5.4%
10,880
3.4%
8,275
8.1%
7,668
5.5%
2,200
97.1%
5,468
-11.1%
7,631
5.1%
5,480
4.8%
5,435
4.7%

*Change : percentage change from the previous year

8,778
72.6%
Full Year
Change242,888
1.1%
32,97812.7%
209,909-0.6%
205,720-0.2%
37,168
8.5%
21,7398.6%
15,428
8.4%
13,922
11.6%
3,463
71.5%
10,459-0.0%
13,887
11.4%
10,081
13.5%
9,986
13.8%

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

FY 202336%

FY 202435%

Product

Rate of
ChangeNetworkrelated
products

10.8%

Storagerelated
products▲14.8%

Securityrelated
products
Maintenance &monitoring
services

Storage-Related
Products

17%
13%

Security-Related
Products

Maintenance & Monitoring Services

11%
14%

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

38%

Main Causes

Main Suppliers

Strong sales to data centers and cloud business operators
Expansion of sales to enterprises

Arista Networks
F5
Extreme Networks

Decreased sales due to absence of large flash storage orders on the scaleof the previous period

Pure Storage
Dell Technologies

43.4% Strong sales of cloud security for system integrators

17.6%

36%

Strong sales of maintenance services for network products for Sler & DC
cloud business operators and storage products for telecommunications
carriers
42

Netskope
SentinelOne
Dell Technologies
TED

EC Business: Sales Component Ratios by Product Category
FY 2023

Analog ICs

Micro Processors

Logic ICs

35%

19%

17%

4%

14%

4% 7%

24%

17%

6%

11%

4% 7%

31%

FY 2024

Memory ICs
Software & Services
Boards, Electronic
PB
Components, etc.

Product

Rate of
ChangeAnalog ICs▲9.9%

Industrial equipment decreased due to the shift to direct manufacturer-toconsumer sales

TI / NXP

Micro processors

27.0%

Automotive equipment increased substantially due to expansion ofcommercial rights

NXP / Infineon / TI / Intel

Logic ICs

▲2.1%

Decreased for peripheral equipment for PCs due to the shift to direct
manufacturer-to-consumer sales
Increased for automotive equipment due to expansion of commercial rights

Infineon/ TI / NXP / Lattice /MaxLinear / Socionext / Realtek

Memory ICs

37.7%

Increased substantially for automotive equipment due to expansion ofcommercial rights

Infineon / Everspin Technologies

Boards, electronic
components, etc.

▲21.7%

Decreased for communications devices and semiconductor manufacturing
equipment

NXP / PFU / Western Digital /Hagiwara Solutions / ams-OSRAM

Software & services▲6.8%

Embedded OS decreased

Microsoft / DELL / Trellix

PB

▲1.7%

FAST was weak; wafer inspection systems contributed

TED / TED Nagasaki / FAST

Main Causes

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

43

Main SuppliersEC Business: Sales Component Ratios by Application
Automotive Equipment

Industrial Equipment

48%

FY 2023

21%

44%

FY 2024

33%

Communications Devices
OthersComputers andConsumer
Peripherals
Devices

13%
9%

10%

2
7% 1%
%

7%

1
5%2%
%

Rate of
ChangeMain Uses

Sales Trends▲9.3%

Medical and analyzing equipment, Semiconductor production
equipment, FA equipment, Industrial robots, Fabricating equipment,
Measuring equipment, Control systems, Electrical component
mounting equipment, Inverters

Analog ICs decreased due to the shift to direct manufacturer-toconsumer sales
Demand for FA and semiconductor manufacturing equipment
decreased
Processors and logic ICs increased due to expansion of commercial
rightsAutomotive
equipment

58.5%

Car navigation systems, Automobile instruments, Advanced Driving
Assistant systems, Displays, Automobile electronic control units(ECUs), Lithium ion batteries, Automobile inverters

Processors and memory ICs increased substantially due to expansionof commercial rights
Analog ICs increased due to increased demand

Computers andperipherals▲31.0%

Multifunctional printers, POS systems, Storage, Server, Projectors,
PCs and peripheral devices

Applications were generally weakAnalog ICs, processors and logic ICs decreased

Communications
Devices▲31.4%

5G base stations, Optical transmission equipment, Satellite
communications equipment, Wireless IP network equipment

Electronic components for base stations and analog ICs forcommunications systems decreased

Application
Industrial
equipment

Electronic musical instruments, Home gaming consoles, Digital
Consumercameras, Air conditioners, TVs and HDD recorders, Residential fuel▲28.4%
Devicescells
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

44

Analog ICs for gaming consoles decreased due to the shift to direct
manufacturer-to-consumer sales

Product Categories
Category

CN
Business

Functions

Network-related products

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 high speed

Security-related products

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

Maintenance & monitoring services

EC
Business

Main Products

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

Logic ICs

Image processing ICs Communications andnetwork applications ICs
ASIC, PLD

ICs with packaged logic circuits, special-purpose ICs made forparticular applications, special ICs made according tocustomer specifications

Memory ICs

SRAM, FRAM, MRAM
Flash memory

Memory ICs, readable/writable memory products, read-only
products

Boards, power supplies, optical components

ICs on printed circuit boards, power supplies, products withmounted connectors and other components (boards)

Software, cloud services

Software embedded in industrial equipment for enterprises
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

Boards, electronic components, etc.

Software & services

PB

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

45

Change in Balance of Orders Received(million yen)
226,862

EC Business

207,857

CN Business

34,427

178,767 34,604

216,777
201,892
36,15435,384

159,857 27,085

193,049
34,797

176,031
33,90326,653

170,788
157,078
37,18335,874

123,843
20,52588,631
66,08342,943
16,982

49,70430,8152Q
FY2021

3Q

133,203

16,852

18,88925,96018,11749,230151,682

173,253

192,435

180,623

166,508 158,252

142,128 133,604

103,318

121,20370,5130

4Q

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

1Q
FY2022

2Q

3Q

4Q

1Q
FY2023
46

2Q

3Q

4Q

1Q
FY2024

2Q

3Q

4Q