Summary of Consolidated Financial Results
For The Second Quarter Ended September 30, 2016
[Japanese GAAP]
October 27, 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 Second Quarter Ended September 30, 2016 (April 1, 2016 to
September 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 Second Quarter
ended September 30, 2016
The Second Quarter
ended September 30, 2015
(Note) Comprehensive income:% Millions of yen% Millions of yen

60,241

5.4

(128)

–

57,143

5.9

788

37.5

The Second Quarter ended September 30, 2016
The Second Quarter ended September 30, 2015

Basic net income
per share

Diluted net income
per share

Yen

Yen

23.23

–

41.73

–

The Second Quarter
ended September 30, 2016
The Second Quarter
ended September 30, 2015

(2) Consolidated Financial Position
Total assets

233 (44.0)

647

416 44.8

46.4

7 million yen [(98.2)%]
409 million yen [186.3%]

Net assets

Equity ratio

Millions of yen%

64,32164,284

21,90822,17434.1
34.5

As of September 30, 2016

21,906 million yen%

315 (51.2)

Millions of yen

As of September 30, 2016
As of March 31, 2016
(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
Net income
Net sales
Ordinary income
attributable toper shareowners of parent
Millions of yen%

Fiscal year ending
125,200
6.3
March 31, 2017
(Note) Revision of financial forecasts: Yes

Millions of yen%

Millions of yen

%

Yen

1,300

(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 stock):
September 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:
September 30, 2016
396,619 shares
March 31, 2016
423,819 shares
3) Average number of shares outstanding during the period:
The Second Quarter ended September 30, 2016
10,038,681 shares
The Second Quarter ended September 30, 2015
9,986,161 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 --------------------------------------------------------------------------------------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 continued to experience sluggish conditions of private consumption
and exports, despite signs of recovery in production trends. The market outlook remains cautious due to theimpact of the yen appreciation and weak overseas economies.
Consolidated financial results for the period were net sales of 60,241 million yen (a year-on-year increase of
5.4%). The Company recorded operating loss of 128 million yen (operating income of 788 million yen in thesame period of the previous fiscal year) due to the decline in gross profit resulting from changes in the sales mix
in the Electronic Components Business and the sharp fluctuations in foreign exchange rates. The Company
recorded ordinary income of 315 million yen (a year-on-year decrease of 51.2%) thanks to factors including
foreign exchange gains, and net income attributable to owners of parent of 233 million yen (a year-on-year
decrease of 44.0%).
Operating results report for each business segment is as follows.

(Electronic Components Business)
Demand for semiconductors was strong overall. In particular, demand for high performance smartphones anddata center equipments was strong. Additionally, the number of semiconductors installed per automobile
increased.
Under such circumstances, net sales in this segment during the period were 52,852 million yen (a year-on-yearincrease of 8.5%) thanks to robust sales of semiconductors for storage and automotive equipment, as well as
strong sales of software for POS system, etc. On the other hand, ordinary income in this segment was 126
million yen (a year-on-year decrease of 66.2%) due to factors including changes in the sales mix.

(Computer Networks Business)
Despite a focus on technologies for efficient network operation, etc., in order to respond to increasing data
volume, large-scale IT investments for banks and government agencies, which had been strong in the previous
period, were weak during the period.
Under such circumstances, net sales in this segment during the period were 7,389 million yen (a year-on-year
decrease of 12.5%) and ordinary income in this segment was 188 million yen (a year-on-year decrease of
30.6%), due to factors including a reactionary decline in equipment sales to government agencies compared tothe same period of the previous fiscal year.

(2) Explanation of Financial Position
Total assets as of the end of the second quarter of the current fiscal year amounted to 64,321 million yen, an
increase of 36 million yen compared to the end of the previous fiscal year. This was primarily due to an increasein notes and accounts receivable - trade, despite a decrease in cash and deposits. Total liabilities amounted to42,413 million yen, an increase of 302 million yen compared to the end of the previous fiscal year. This wasprimarily due to an increase in short-term loans payable. In addition, total net assets were 21,908 million yen, a-2-

decrease of 265 million yen compared to the end of the previous fiscal year. As a result, equity ratio declined by
0.4 percentage points from the end of the previous fiscal year to 34.1%.

(3) Explanation of Financial Estimates Information such as Consolidated Financial Forecasts
Based on sales through the second quarter, and in light of the business trends from the third quarter onward, theCompany revised the exchange rate assumed at the beginning of the current fiscal year (109 yen to the US
dollar) to 100 yen to the US dollar. Accordingly, the Company has decided to revise the consolidated financial
forecasts for the fiscal year ending March 31, 2017 as follows.
Net sales

Ordinary income

Net income
attributable toowners of parent

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts(announced on April
26, 2016) (A)123,000

1,700

1,130

112.76

Current forecasts (B)125,200

1,300

900

89.81

Change (B-A)

2,200

(400)

(230)

–

Change (%)

1.8(23.5)(20.4)–

117,831

1,628

925

92.55

(Reference)
Consolidated financial
results for the fiscal
year ended March 31,
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
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 Sep. 30, 2016)

2,637
28,902

2,103
30,404627

771

21,527
5,644
59,34021,066
5,148
59,494

870
772

852
603

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

198
3,184
(12)
3,370
4,826
64,321

8,694
10,680
2,096
712
6,005
28,1898,479
12,45696
444
6,981
28,458

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

6,240
7,131
583
13,95442,413

(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 Sep. 30, 2016)

2,495
5,645
14,917(628)
22,4302,495
5,645
14,837(587)
22,390

(8)

(11)

77
215
(542)

26
7
(508)

(258)

(484)

2
22,17464,2842
21,90864,321

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

57,14349,537
7,605(Millions of yen)
FY 2017(from Apr. 1, 2016
to Sep. 30, 2016)
60,24153,855
6,386

2,884
651
259
3,020
6,816
788

2,822
433
409
2,850
6,515
(128)

22
37
–
13
74

14
37
448
20
521

34
144
36
215
647

46
–
30
76
315

–

0

8

–

8

0

3
9
1
14
641
224
416
416

3
–
–
3
312
79
233
233

FY 2016(from Apr. 1, 2015
to Sep. 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
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
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

416(Millions of yen)
FY 2017(from Apr. 1, 2016
to Sep. 30, 2016)
233

(5)

(2)

84
(6)

(50)
(193)

(70)

34

(9)

(13)

(7)
409

(225)
7

409

7

–

–

FY 2016(from Apr. 1, 2015
to Sep. 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 Sep. 30, 2016)

FY 2016(from Apr. 1, 2015
to Sep. 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
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-

641
241
51
(73)
15
34
9

312
237
51
(264)
78
46
–

(8)

–

2,107

(2,468)

2,587

(152)

(2,028)

(29)

(732)
1,053
0

(101)
874
211

2,694

276

251
(160)
(354)
(302)
6,027
0
(36)
(571)
–

65
287
(280)
345
(508)
5
(45)
(84)
93

5,421

(540)

(39)
(74)
–
43
–

(72)
(25)
(30)
–
(83)

20

–

7
(42)

13
(198)

(Millions of yen)
FY 2017(from Apr. 1, 2016
to Sep. 30, 2016)

FY 2016(from Apr. 1, 2015
to Sep. 30, 2015)
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-9-(6,033)

2,550

(48)
39
(299)
2

(2,048)
41
(300)
(0)

(6,339)

242

0

(37)

(959)
2,302
1,342

(534)
2,637
2,103

(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 September 30, 2015 (From Apr. 1, 2015 to Sep. 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)

48,6988,444

57,143–57,143

–

–

–

–

–

Total
48,6988,444
57,143–57,143
Segment
375
272
647
–
647
income(Note) Total amount of segment income coincides with the ordinary income in the consolidated statements of income.
II. For the Period ended September 30, 2016 (From Apr. 1, 2016 to Sep. 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)

52,852

7,389

60,241–60,241

–

–

–

–

–

Total
52,852
7,389
60,241–60,241
Segment
126
188
315
–
315
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 September 30, 2016 are as follows:
Purchase amount(Millions of yen)
48,316Year-on-year change
(%)
18.4

5,085

(16.9)

Total
53,402(Note) Above figures are stated net of consumption taxes, etc.

13.8

Segment
Electronic Components Business
Computer Networks Business

2) Orders
Orders by segment for the period ended September 30, 2016 are as follows:
Year-on-year
Orders received
Order backlog
Segmentchange(Millions of yen)
(Millions of yen)(%)
55,58916.5
18,068
Electronic Components Business
Computer Networks Business

7,557

63,146
Total(Note) Above figures are stated net of consumption taxes, etc.

(17.3)

7,380

(3.8)

11.1

25,44820.1

3) SalesSales by segment for the period ended September 30, 2016 are as follows:
Sales
Year-on-year change
Segment(Millions of yen)(%)
52,852
8.5
Electronic Components Business
7,389(12.5)

60,241
Total(Note) Above figures are stated net of consumption taxes, etc.

5.4

Computer Networks Business- 11 -

Year-on-yearchange(%)
33.7