Summary of Consolidated Financial Results
For the Third Quarter Ended December 31, 2016
[Japanese GAAP]
January 27, 2017
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 Third Quarter Ended December 31, 2016 (April 1, 2016 to
December 31, 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 Third Quarter
ended December 31, 2016
The Third Quarter
ended December 31, 2015
(Note) Comprehensive income:% Millions of yen

93,8188.7428 (59.5)

86,296

7.4

1,058 (31.8)

The Third Quarter ended December 31, 2016
The Third Quarter ended December 31, 2015

Diluted net income
per share

Yen

Yen

35.93

–

55.29

–

(2) Consolidated Financial Position
Total assets% Millions of yen

459 (46.5)

360 (34.7)

858

552 48.5

57.6

Net assets

Equity ratio

Millions of yen

Millions of yen%

71,42964,284

21,872
22,17430.6
34.5

As of December 31, 2016
As of March 31, 2016

As of December 31, 2016

21,870 million yen%

257 million yen [(46.3)%]
478 million yen [23.2%]

Basic net income
per share
The Third Quarter
ended December 31, 2016
The Third Quarter
ended December 31, 2015

(Reference) Equity:% Millions of 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

60.00

30.00

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
Basic net income
Net sales
Ordinary income
attributable toper shareowners of parent
Millions of yen% Millions of yen

Fiscal year ending
125,200
6.3
March 31, 2017
(Note) Revision of financial forecasts: No

1,300

%

Millions of yen%

Yen(20.2)

900

(2.7)

89.81

*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 shares):December 31, 2016
10,445,500 shares
March 31, 2016
10,445,500 shares
2) Number of treasury shares at the end of the period:
December 31, 2016
377,819 shares
March 31, 2016
423,819 shares
3) Average number of shares outstanding during the period:
The Third Quarter ended December 31, 2016
10,044,948 shares
The Third Quarter ended December 31, 2015
9,992,201 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 treasury shares.
* 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 --------------------------------------------------------------------------------------2(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 -------------------------------------------------------------------------10(Notes on Going Concern Assumption) -------------------------------------------------------------------------10(Notes on Significant Changes in Shareholders’ Equity) ---------------------------------------------10(Segment Information) ---------------------------------------------------------------------------------------------10
4. Supplementary Information ------------------------------------------------------------------------------------------------11(1) Status of Purchases, Orders and Sales --------------------------------------------------------------------------------11-1-

1. Qualitative Information on Financial Results for the Period(1) Explanation of Operating Results
During the period, the Japanese economy started to recover slightly as corporate sentiment and production
trends mainly in large corporations revived despite remaining weakness in some areas including capital
investments. Meanwhile, the overseas market outlook remains cautious due to factors such as the direction of
the new U.S. administration and the prospect of Brexit negotiation.
Consolidated financial results for the period were net sales of 93,818 million yen (a year-on-year increase of
8.7%). The Company recorded operating income of 428 million yen (a year-on-year decrease of 59.5%) due tochanges in the sales mix in the Electronic Components Business and the fluctuations in foreign exchange rates.
The Company recorded ordinary income of 459 million yen (a year-on-year decrease of 46.5%), and net income
attributable to owners of parent of 360 million yen (a year-on-year decrease of 34.7%).
Operating results report for each business segment is as follows.

(Electronic Components Business)
The semiconductor market remains strong as a whole, owing not only to a trend of increasing number ofsemiconductors installed in automobiles in line with adoption of sensors, but also to increased demand resulting
from the expanded data center market. In addition, reorganization centered on the overseas semiconductor
manufacturers beyond the existing industry has been going on, and the profit structure has been changing
toward the IoT era.
Under such circumstances, net sales in this segment during the period were 82,987 million yen (a year-on-yearincrease of 12.5%) thanks to increased sales of specialized ICs for storage and the expanded smartphone-related
distribution rights, etc. On the other hand, ordinary income in this segment was 290 million yen (a year-on-year
decrease of 41.1%) due to factors including changes in the sales mix.

(Computer Networks Business)
The large-scale system update in the financial industry centered on banks and projects for government agencies,
which had been strong in the previous period, were sluggish during the period. Currently, not only technologies
for efficient network operation, but also the field of security is attracting attention as an IT investment target.
Under such circumstances, net sales in this segment during the period were 10,831 million yen (a year-on-year
decrease of 13.4%) and ordinary income in this segment was 169 million yen (a year-on-year decrease of
53.7%), due to factors including a reactionary decline in equipment sales to financial institutions andgovernment agencies.

(2) Explanation of Financial Position
Total assets as of the end of the third quarter of the current fiscal year amounted to 71,429 million yen, an
increase of 7,144 million yen compared to the end of the previous fiscal year. This was primarily due to anincrease in notes and accounts receivable - trade. Total liabilities amounted to 49,556 million yen, an increase of
7,445 million yen compared to the end of the previous fiscal year. This was primarily due to increases in short-2-

term loans payable and forward exchange contracts (under “other” of current liabilities). In addition, total net
assets were 21,872 million yen, a decrease of 301 million yen compared to the end of the previous fiscal year.
As a result, equity ratio declined by 3.9 percentage points from the end of the previous fiscal year to 30.6%.

(3) Explanation of Financial Estimates Information such as Consolidated Financial Forecasts
There are no changes in the consolidated financial forecasts for the fiscal year ending March 31, 2017 from theprevious forecast announced in “Summary of Consolidated Financial Results For The Second Quarter Ended
September 30, 2016 [Japanese GAAP]” on October 27, 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 first quarter of the current fiscal year.

-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
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible 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 Dec. 31, 2016)

2,637
28,902

2,996
35,055627

966

21,527
5,644–
59,34022,4245,097(41)
66,499

870
772

824
508

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

382
3,226
(12)
3,596
4,930
71,4298,694
10,680
2,096
712
6,005
28,1899,718
14,09896
317
8,410
32,640

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

9,216
7,156
544
16,91649,556

(Millions of yen)
FY 2016(As of Mar. 31, 2016)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
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 Dec. 31, 2016)

2,495
5,645
14,917(628)
22,4302,495
5,645
14,651(559)
22,232

(8)

6

77
215
(542)

(204)
263
(428)

(258)

(362)

2
22,17464,284

2
21,872
71,429(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

86,29675,15011,146(Millions of yen)
FY 2017(from Apr. 1, 2016
to Dec. 31, 2016)
93,81883,522
10,296

4,272
317
389
5,108
10,088
1,058

4,203
312
607
4,743
9,867
428

22
37
–
21
81

14
37
76
28
156

52
174
54
281
858

76
–
49
126
459

–

0

8

–

–
8

60
61

4
9
1
15
851
299
552
552

3
–
–
3
517
156
360
360

FY 2016(from Apr. 1, 2015
to Dec. 31, 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
Non-operating income
Insurance income
Dividend income of insurance
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
Gain on transition of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of investment securities
Other
Total extraordinary losses
Net income before income taxes
Income taxes
Net income
Net income attributable to owners of parent-6-

Consolidated Statements of Comprehensive Income

552(Millions of yen)
FY 2017(from Apr. 1, 2016
to Dec. 31, 2016)
360

(5)

14

62
0

(281)
66

(105)

114

(26)

(17)

(73)
478

(103)
257

478

257

–

–

FY 2016(from Apr. 1, 2015
to Dec. 31, 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 of entities
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 Dec. 31, 2016)

FY 2016(from Apr. 1, 2015
to Dec. 31, 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
Foreign exchange losses (gains)
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
Increase (decrease) in deposits received
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in accounts receivable - other
Decrease (increase) in advances paid
Decrease (increase) in prepaid expenses
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of investments in capital ofsubsidiaries and associates
Other, net
Net cash provided by (used in) investing activities

-8-

851
365
77
(431)
(139)
52
(167)
9

517
360
77
(394)
117
76
1,980
–

(8)

–

874

(6,154)

1,582

(820)

(1,413)

999

(137)
900
85

(47)
915
(338)

2,473

(43)

234
(356)
(351)
(75)
4,425
0
(54)
(885)
–

63
262
(125)
(322)
(2,876)
6
(75)
(221)
93

3,486

(3,073)

(59)
(73)
–
43
–

(98)
(27)
(30)
–
(83)

20

–

(14)
(83)

17
(223)

(Millions of yen)
FY 2017(from Apr. 1, 2016
to Dec. 31, 2016)

FY 2016(from Apr. 1, 2015
to Dec. 31, 2015)
Cash flows from financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
Repayments 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-9-(6,079)

3,231

3,000
(72)
69
(598)
2

3,000
(2,072)
70
(602)
(0)

(3,678)

3,626

1

28

(274)
2,302
2,028

358
2,637
2,996

(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 December 31, 2015 (From Apr. 1, 2015 to Dec. 31, 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)

73,782

12,51486,296–86,296

–

–

–

–

–

Total
73,782
12,51486,296–86,296
Segment
493
365
858
–
858
income(Note) Total amount of segment income coincides with the ordinary income in the consolidated statements of income.
II. For the Period ended December 31, 2016 (From Apr. 1, 2016 to Dec. 31, 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)

82,987

10,831

93,818–93,818

–

–

–

–

–

Total
82,987
10,831
93,818–93,818Segment
290
169
459
–
459
income(Note) Total amount of segment income coincides with the ordinary income in the consolidated statements of income.

- 10 -

4. Supplementary Information(1) Status of Purchases, Orders and Sales
1) Purchases
Purchases by segment for the period ended December 31, 2016 are as follows:
Segment

Purchase amount(Millions of yen)

Year-on-year change(%)

Electronic Components Business

76,716

18.5

Computer Networks Business

7,784(11.9)

Total

84,50014.9(Note) Above figures are stated net of consumption taxes, etc.

2) Orders
Orders by segment for the period ended December 31, 2016 are as follows:
Year-on-year
Orders received
Order backlog
Segmentchange(Millions of yen)
(Millions of yen)(%)
89,02723.3
21,371
Electronic Components BusinessYear-on-yearchange(%)
65.6

Computer Networks Business

12,324

(8.8)

8,705

9.2

Total

101,352

18.3

30,07744.0(Note) Above figures are stated net of consumption taxes, etc.

3) SalesSales by segment for the period ended December 31, 2016 are as follows:
Sales
Year-on-year change
Segment(Millions of yen)(%)
82,987
12.5
Electronic Components Business
Computer Networks Business

10,831(13.4)

Total

93,8188.7(Note) Above figures are stated net of consumption taxes, etc.

- 11 -