Summary of Consolidated Financial Results
For The First Quarter Ended June 30, 2016
[Japanese GAAP]
July 28, 2016
Company name:
Stock exchange listing:
URL:
Representative:
Contact:
TEL:

TOKYO ELECTRON DEVICE LIMITEDTokyo Stock Exchange 1st Section (Code 2760)
http://www.teldevice.co.jp/eng/
Atsushi Tokushige, President & Representative Director
Hiroki Tanaka, Director, Finance Department045-443-4000(Amounts are rounded down to the nearest million yen.)
1. Consolidated Financial Highlights for the First Quarter Ended June 30, 2016 (April 1, 2016 to June 30,
2016)(1) Consolidated Operating Results (cumulative)(% indicates changes from the same period of previous fiscal year.)
Net income
Net sales
Operating income
Ordinary income
attributable toowners of parent
Millions of yen

The First Quarter
ended June 30, 2016
The First Quarter
ended June 30, 2015
(Note) Comprehensive income:% Millions of yen% Millions of yen

29,387

3.4

(62)

–

28,416

9.5

697

547.5

The First Quarter ended June 30, 2016
The First Quarter ended June 30, 2015

Yen

6.48

–

37.00

–

(2) Consolidated Financial Position
Total assets(Reference) Equity:

75 (86.8)

64(82.4)

569

369

499.0

627.1

66 million yen [(81.4)%]359 million yen [689.1%]

Yen

Net assets

Equity ratio

Millions of yen

Millions of yen%

64,53564,284

21,957
22,17434.0
34.5

As of June 30, 2016
As of March 31, 2016

As of June 30, 2016%

Diluted net income
per share

Basic net income
per share
The First Quarter
ended June 30, 2016
The First Quarter
ended June 30, 2015

% Millions of yen

21,954 million yen

As of March 31, 2016

22,171 million yen

2. Dividends
End of 1Q
Yen

Fiscal year ended–
March 31, 2016
Fiscal year ending–
March 31, 2017
Fiscal year ending
March 31, 2017
(Forecast)(Note) Revision of dividends forecast: None

Annual dividends per share
End of 2Q
End of 3Q
Year-end

Total

Yen

Yen

Yen

Yen

30.00

–

30.00

60.00

30.00

–

30.00

60.00

3. Consolidated Financial Forecasts for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to March 31,
2017)(% indicates changes from the same period of previous fiscal year.)
Net income
Net income
Net sales
Ordinary income
attributable to owners
per shareof parent
Millions of yen%

Six months ending
September 30,
58,3002.0
2016 (cumulative)
Fiscal year ending
123,000
4.4
March 31, 2017
(Note) Revision of financial forecasts: None

Millions of yen%

Millions of yen

%

Yen

300

(53.7)

210(49.6)

20.95

1,700

4.4

1,130

22.1

112.76*Notes(1) Changes of significant subsidiaries during the period : None
(2) Changes in accounting policies, accounting estimates, and restatements
1) Changes due to revision of accounting standards: Yes2) Changes in accounting standards other than 1): None3) Changes in accounting estimates: None4) Restatements: None(Note) For details, please refer to “Issues on Summary Information (Notes)” on page 3 of the Appendix.
(3) Number of shares outstanding (common stock)1) Number of shares outstanding at the end of the period (including treasury stock):
June 30, 2016
10,445,500 shares
March 31, 2016
10,445,500 shares
2) Number of shares of treasury stock at the end of the period:
June 30, 2016
403,719 shares
March 31, 2016
423,819 shares
3) Average number of shares outstanding during the period:
The First Quarter ended June 30, 2016
10,030,848 shares
The First Quarter ended June 30, 2015
9,978,939 shares(Note) The Company has adopted the Directors’ Compensation BIP (Board Incentive Plan) Trust and the Employee
Shareholding Association ESOP (Employee Stock Ownership Plan) Trust, and has included the number of
the Company’s shares held by both Trusts accordingly in the number of shares of treasury stock.
* Notification of the status of the quarterly review proceduresThis quarterly financial report is exempt from the quarterly review procedures under the Financial Instruments
and Exchange Act. At the time of disclosure of this report, review procedures for the quarterly consolidated
financial statements have not been completed.
* Explanation of the appropriate use of finance forecasts and other special notes
The financial forecasts and other estimates herein are based on currently available information and certain
assumptions deemed reasonable at time of report issuance. The Company does not guarantee the achievement ofthese forecasts. Actual operating results may differ significantly from these forecasts due to various factors. For
information concerning financial forecasts, please refer to “Explanation of Financial Estimates Information suchas Consolidated Financial Forecasts” on page 3 of the Appendix.

Contents of Appendix
1. Qualitative Information on Financial Results for the Period -------------------------------------------------------------2(1) Explanation of Operating Results -------------------------------------------------------------------------------------2(2) Explanation of Financial Position --------------------------------------------------------------------------------------3(3) Explanation of Financial Estimates Information such as Consolidated Financial Forecasts ----------------3
2. Issues on Summary Information (Notes) ------------------------------------------------------------------------------------3(1) Changes of Significant Subsidiaries during the Period -------------------------------------------------------------3(2) Changes in Accounting Policies, Accounting Estimates, and Restatements-------------------------------------3(3) Additional Information ----------------------------------------------------------------------------------------------------3
3. Consolidated Financial Statements ----------------------------------------------------------------------------------------4(1) Consolidated Balance Sheets --------------------------------------------------------------------------------------------4(2) Consolidated Statements of Income and Comprehensive Income -----------------------------------------------6(3) Consolidated Statements of Cash Flow -------------------------------------------------------------------------------8(4) Notes on Consolidated Financial Statements -------------------------------------------------------------------------9(Notes on Going Concern Assumption) -------------------------------------------------------------------------9(Notes on Significant Changes in Shareholders’ Equity) ---------------------------------------------9(Segment Information) ---------------------------------------------------------------------------------------------9
4. Supplementary Information------------------------------------------------------------------------------------------------10(1) Status of Purchases, Orders and Sales --------------------------------------------------------------------------------10-1-

1. Qualitative Information on Financial Results for the Period(1) Explanation of Operating Results
During the period, economic recovery stalled in Japan, as production trends and consumer sentiment remained
at a standstill, despite signs of improvement in the employment and income environments. In addition, themarket outlook remains more cautious due to the impact of the economic slowdown in China and certain
emerging countries, and the effects of the sharp fluctuation in foreign exchange rate on the real economy.
Consolidated financial results for the period were net sales of 29,387 million yen (a year-on-year increase of
3.4%). Despite this increase in net sales, the Company recorded operating loss of 62 million yen (operating
income of 697 million yen in the same period of the previous fiscal year) due to factors including changes in the
product mix in the Electronic Components Business. The Company recorded ordinary income of 75 million yen(a year-on-year decrease of 86.8%) thanks to factors including foreign exchange gains, and net income
attributable to owners of parent of 64 million yen(a year-on-year decrease of 82.4%).
Operating results report for each business segment is as follows.

(Electronic Components Business)
While the supply/demand balance for semiconductors in general remains in an adjustment phase, demand forsemiconductors for industrial equipment and others, has been recovering moderately. Meanwhile, the yen
appreciated to levels higher than those in the same period of the previous fiscal year, which has resulted in apersistently harsh business climate for exporting companies.
Under such circumstances, net sales in this segment during the period were 25,649 million yen (a year-on-yearincrease of 5.8%) thanks to robust sales of products for storage and automotive equipment, despite the decreasein sales of custom ICs for industrial and communications equipment due to termination of the distributorshipagreement with XILINX INC. On the other hand, ordinary loss in this segment was 8 million yen ( ordinary
income was 373 million yen in the same period of the previous fiscal year) due to changes in the product mix
and the sharp fluctuations in foreign exchange rates.

(Computer Networks Business)
There has been enhanced motivation to invest in IT for the communications industry, with particular focus on
virtualization technology in preparation for efficient network operations compatible with increasing data
volume, in addition to risk countermeasures.
Under such circumstances, net sales in this segment during the period were 3,738 million yen ( a year-on-year
decrease of 10.6%) and ordinary income in this segment was 83 million yen (a year-on-year decrease of 57.3%),
due to factors including a reactionary decline in equipment sales to government agencies, which had been strong
in the same period of the previous fiscal year, despite brisk sales of equipment for enterprises.

-2-(2) Explanation of Financial Position
Total assets as of the end of the first quarter of the current fiscal year amounted to 64,535 million yen, an
increase of 251 million yen compared to the end of the previous fiscal year. This was primarily due to anincrease in cash and deposits, despite a decrease in notes and accounts receivable - trade. Total liabilities
amounted to 42,578 million yen, an increase of 467 million yen compared to the end of the previous fiscal year.
This was primarily due to an increase in short-term loans payable. In addition, total net assets were 21,957
million yen, a decrease of 216 million yen compared to the end of the previous fiscal year. As a result, equity
ratio declined by 0.5 percentage points from the end of the previous fiscal year to 34.0%.

(3) Explanation of Financial Estimates Information such as Consolidated Financial Forecasts
As operating results for the period has been more or less as initially forecasted, and in light of trends going
forward, there are no changes in the consolidated financial forecasts for the six months ending September 30,
2016 and the fiscal year ending March 31, 2017 from the previous forecast announced on April 26, 2016.

2. Issues on Summary Information (Notes)(1) Changes of Significant Subsidiaries during the Period
None.

(2) Changes in Accounting Policies, Accounting Estimates, and Restatements(Changes in Accounting Policies)
In conjunction with the revision of the Corporation Tax Act, the Company adopted the “Practical Solution on a
Change in Depreciation Method due to Tax Reform 2016” (Accounting Standards Board of Japan [ASBJ]
Practical Issues Task Force [PITF] No. 32, June 17, 2016), effective in the first quarter of the current fiscal year,
and accordingly has changed the method for the depreciation of facilities attached to buildings and structuresacquired on or after April 1, 2016 from the declining-balance method to the straight-line method.
This change has no impact on the consolidated financial statements for the period.

(3) Additional Information(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26, March 28, 2016), effective from the current period.

-3-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
FY 2016(As of Mar. 31, 2016)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible fixed assets
Investments and other assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities-4-

FY 2017(As of Jun. 30, 2016)

2,637
28,902

3,757
28,243627

726

21,527
5,644
59,34021,503
5,456
59,688

870
772

864
684

177
3,135
(11)
3,301
4,944
64,284

187
3,123
(11)
3,298
4,847
64,535

8,694
10,680
2,096
712
6,005
28,189

7,862
11,993
2,096
221
6,543
28,716

6,288
7,080
552
13,921
42,110

6,264
7,050
547
13,861
42,578(Millions of yen)
FY 2016(As of Mar. 31, 2016)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-5-

FY 2017(As of Jun. 30, 2016)

2,495
5,645
14,917(628)
22,4302,495
5,645
14,668(598)
22,211

(8)

(18)

77
215
(542)

234
52
(525)

(258)

(256)

2
22,17464,2842
21,95764,535

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

28,41624,3504,065(Millions of yen)
FY 2017(from Apr. 1, 2016
to Jun. 30, 2016)
29,387
26,168
3,218

1,450
292
130
1,494
3,368
697

1,408
212
204
1,455
3,281
(62)

23
–
8
32

14
150
12
176

18
127
14
160
569

23
–
15
39
75

–

0

8

–

8

0

2
9
11
566
196
369
369

1
–
1
75
10
64
64

FY 2016(from Apr. 1, 2015
to Jun. 30, 2015)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Other
Total selling, general and administrative expenses
Operating income (loss)
Non-operating income
Insurance income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of golf memberships
Gain on sales of investments in capital ofsubsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of investment securities
Total extraordinary losses
Net income before income taxes
Income taxes
Net income
Net income attributable to owners of parent-6-

Consolidated Statements of Comprehensive Income369(Millions of yen)
FY 2017(from Apr. 1, 2016
to Jun. 30, 2016)
64

(5)

(10)

14
31

157
(162)

(35)

17

(16)

(0)

(10)
359

1
66

359

66

–

–

FY 2016(from Apr. 1, 2015
to Jun. 30, 2015)
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7-(3) Consolidated Statements of Cash Flow
(Millions of yen)
FY 2017(from Apr. 1, 2016
to Jun. 30, 2016)

FY 2016(from Apr. 1, 2015
to Jun. 30, 2015)
Cash flows from operating activities
Net income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on sales of investments in capital ofsubsidiaries and associates
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable- tradeIncrease (decrease) in accounts payable - other
Increase (decrease) in advances received
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in accounts receivable - other
Decrease (increase) in prepaid expenses
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for establishment of unconsolidated
subsidiaries
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
payableRepayments of long-term loans payable
Proceeds from disposal of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

-8-

566
118
25
(436)
(61)
18
9

75
116
25
(488)
(15)
23
–

(8)

–

2,667

(121)

3,605

(531)

(2,782)

(682)

(452)
1,318

(46)
903

2,972

556

(3,036)
(437)
182
4,268
0
(19)
(566)

219
(424)
82
(308)
5
(23)
(82)

3,682

(408)

(5)
(37)

(44)
(11)

–

(33)

1
(41)

1
(87)

(3,901)

1,979

(24)
28
(299)
(0)

(24)
30
(300)
(0)

(4,195)

1,685

10

(69)

(544)
2,302
1,757

1,119
2,637
3,757

(4) Notes on Consolidated Financial Statements(Notes on Going Concern Assumption)
None.

(Notes on Significant Changes in Shareholders’ Equity)
None.

(Segment Information)
I. For the Period ended June 30, 2015 (From Apr. 1, 2015 to Jun. 30, 2015)
1. Information on the amount of net sales and income (loss) by segments(Millions of yen)Segments
Computer
Networks
Business

Electronic
Components
Business
Net sales:
Outsidecustomers
Inter-segment

Total

Adjustments

Consolidated
statements of income(Note)

24,235

4,181

28,416–28,416

–

–

–

–

–

Total
24,235
4,181
28,416–28,416
Segment
373
195
569
–
569
income(Note) Total amount of segment income coincides with the ordinary income in the consolidated statements of income.
II. For the Period ended June 30, 2016 (From Apr. 1, 2016 to Jun. 30, 2016)
1. Information on the amount of net sales and income (loss) by segments(Millions of yen)Segments
Computer
Networks
Business

Electronic
Components
Business
Net sales:
Outsidecustomers
Inter-segment

Total

Adjustments

Consolidated
statements of income(Note)

25,6493,738

29,387–

29,387

–

–

–

–

–

Total
25,6493,738
29,387–
29,387
Segment
(8)
83
75
–
75
income (loss)(Note) Total amount of segment income (loss) coincides with the ordinary income in the consolidated statements of income.

-9-

4. Supplementary Information(1) Status of Purchases, Orders and Sales
1) Purchases
Purchases by segment for the period ended June 30, 2016 are as follows:
Purchase amount(Millions of yen)
23,651Year-on-year change
(%)
31.2

2,525

(10.8)

Total
26,176(Note) Above figures are stated net of consumption taxes, etc.

25.5

Segment
Electronic Components Business
Computer Networks Business

2) Orders
Orders by segment for the period ended June 30, 2016 are as follows:
Year-on-year
Orders received
Segmentchange(Millions of yen)(%)
27,38814.0
Electronic Components Business
Computer Networks Business

3,976

31,365
Total(Note) Above figures are stated net of consumption taxes, etc.

17,071Year-on-yearchange(%)
19.4(17.8)

7,450

(2.5)

8.6

24,521

11.8

Order backlog(Millions of yen)

3) SalesSales by segment for the period ended June 30, 2016 are as follows:
Sales
Year-on-year change
Segment(Millions of yen)(%)
25,649
5.8
Electronic Components Business
3,738(10.6)

29,387
Total(Note) Above figures are stated net of consumption taxes, etc.

3.4

Computer Networks Business- 10 -