Interim Financial Briefing for
the Fiscal Year Ending
March 31, 2022
October 29, 2021

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

AgendaFinancial Report
Corporate Director Yukio Saeki

Forecast for the Fiscal Year Ending March 31, 2022
President & Representative Director Atsushi Tokushige

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

2

Financial Report

Corporate Director Yukio Saeki

Copyright© TokyoDevice Device
LTD. AllLTD.
RightsCopyright© ElectronTokyo Electron
All Reserved.
Rights Reserved.

3

Topics Concerning Interim Financial Results for the
Fiscal Year Ending March 31, 2022

Year-on-Year Comparison: Higher sales and income
Net sales:
33.7％ increase
Ordinary income: 96.7％ increase
Net income attributable to owners of parent: 221.4% increase

TED adopted a resolution to submit an application for
selection to be listed on the Prime Market, a newmarket segment of the Tokyo Stock Exchange

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

4

Summary of Financial Results: Comparison with PriorYear
FY2021 Interim

FY2022 Interim(Million yen)

FY2022
Revised 1st
Half Forecast

Change61,90182,78020,87853,126

71,517

18,391

8,775

11,262

2,486

7,653

8,505

851

Operating income

1,122

2,757

1,634

Non-operating
incomeNon-operating
expenses

187
48

137
412

▲50
364

Ordinary income

1,261

2,481

1,220

2,000

823

2,646

1,822

2,400

1,250

1,280

30

Net sales
Cost of sales
Gross profit
Selling, general &administrative
expenses

Interim net income
No. of employees
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

* Interim net income is5net income attributable to owners of parent for 2Q

81,000Summary of Financial Results: Change in Net Sales
FY2021
Interim net sales

CN Business

EC Business(Distribution)

EC Business(PB Business)▲¥ 0.4 bill.

¥20.9 bill.

¥ 0.4 bill.

FY2022
Interim net sales¥82.8
billion¥61.9
billion* Amounts of change
are rounded off

In the segment categories, the PB Business is included in the EC Business.
PB Business is an abbreviation of “Private Brand Business;” the title was changed from In-House Brand Business, which
was used in the past.
The PB Business includes Tokyo Electron Device Nagasaki Limited (TED Nagasaki) and FAST CORPORATION (FAST).
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

6

Sales and Income by Segment••

CN Business: Net sales were down due to the cancellation of agency agreements and adoptionof new accounting standards; SG&A expenses were up due to an increase in employees,
resulting in lower segment income
EC Business: Despite semiconductor supply problems, expanded trade rights and increased
inventories of parts and materials resulted in higher sales and income(Million yen)
FY2021 Interim

FY2022 Interim

Net Sales

Segment
IncomeNet Sales

ChangeSegment
IncomeChangeComputer Networks(CN) Business

10,426

1,040

10,002

▲423

918

▲122

Electronic Components(EC) Business

51,475

221

72,777

21,302

1,563

1,342

Total

61,901

1,261

82,78020,878

2,481

1,220

* 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 (1/2）
Sales Component Ratios by Product Category•••

Network-related products: Firm sales to data centers and cloud business operators
Storage-related products: Lower sales due to cancelation of agency agreements
Maintenance and monitoring services: Firm sales
Security-related Products
Network-Related Products

Storage-Related
Products

FY2021
Interim28%

22%

FY2022
Interim

30%

Maintenance & Monitoring Services

6%

16%

10
%

44%

44%

* In the CN business, product categories for sales component ratios have been modified
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

8

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

Lower sales to system integrators due to cancellation of agency agreements
Higher sales to data centers and cloud business operators in conjunction withincreases in telecommunications volumes
Telecommunications Carriers

FY2021
Interim

FY2022
InterimCopyright © Tokyo Electron Device LTD. All Rights Reserved.

System Integrators

Data Centers &Cloud Business
Operators

Enterprises & Others

53%

14%

26%

46%

22%

9

19%

7%

13%

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

Analog ICs: Substantial increase in sales of industrial equipment
Boards, electronic components, etc.: Lower sales due to cancellation of
agency agreements
Software & Services

Memory ICs

FY2021
Interim

FY2022
Interim

Analog ICs

Micro Processors

26%

25%

Logic ICs

Boards, Electronic
Components, etc.

14% 5

%

37%

22%

17%

PB

6 7

% %

15%

4 11%

%

5

%

6

%

* In the EC business, product categories for sales component ratios have been modified
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

10

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

Higher sales in all areas
Substantial increase in sales of industrial equipment, in part due to expanded
trade rights
Computers & Peripherals

FY2021
InterimIndustrial Equipment

Automotive
Equipment

51%

18%

FY2022
InterimCopyright © Tokyo Electron Device LTD. All Rights Reserved.

46%

Communications
Equipment

18%

20%

11

Consumer
Appliances &Electronics

6 7

% %

18%

8%

8

%

Consolidated Overseas Subsidiaries: Net Sales—EC Business• Automotive equipment and computers & peripherals: Higher sales

FY2021 Interim

FY2022 Interim

Consolidated overseas
subsidiaries net sales(million yen)

13,12320,931

Consolidated overseas
subsidiaries net sales
ratio

25.5%

28.8%

Consolidated overseas
subsidiaries net sales
($1M)

122

190

Exchange rate (yen)106.93109.81

ChangeRate of
Change

7,808

59.5%

67

55.3%

* The net sales ratio is the ratio of EC business net sales
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

12

PB Business: Net Sales—EC Business•••

Design & Manufacturing Services: Recovery in sales for medical equipment,
broadcasting equipment, and semiconductor manufacturing equipment
TED Nagasaki: Firm sales for semiconductor manufacturing equipment
FAST: Firm sales for panel inspection devices(Million yen)

FY2021 Interim

FY2022 Interim

PB business net
sales

3,904

4,261

Net sales ratio

7.6%

5.9%

Change356

Rate of
Change9.1%* The net sales ratio is the ratio of EC business net sales

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

13

Balance Sheet
Assets••Liabilities & Net Assets

Accounts receivable decreased as a result ofcollection of sales receivables
Tangible non-current assets increased as a result of aland and building exchange by TED Nagasaki

90,87092,181(Million yen)

5,680

4,493

Cash & deposits

41,724

40,583

Notes and accounts
receivable

25,351Inventories

9,481
8,149

11,791
9,961

Other current assets

2021.3.31

2021.9.30

25,8350•

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

Non-current assets

Borrowings were repaid in conjunction
with a decrease in operating capital

90,87092,181(Million yen)

11,187

11,687

Notes and accounts
payable25,33422,916

Interest-bearing
liabilities

24,696

27,061Other liabilities

29,65230,515

Net assets

2021.3.31

2021.9.30

0* Effects of application of new accounting standards
Assets: Inventories decreased and prepaid expenses increased
Liabilities & net assets: Advances received increased
14

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

Investment
C/F

Financial
C/F

3,467

▲173

▲4,506

5,391

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

Exchangedifferences,
etc.

2021.9.30
Balance of
Cash

19

4,197

15

Changes in Orders Received••

CN Business: Firm orders from data centers and cloud business operators
EC Business: Contribution from expanded trade rights since the second quarter of FY2021,
effects from tight semiconductor supplies since the third quarter; tight supplies will continue
in FY2022 and long-term orders received will increase
76,983 (Million yen)
EC Business

66,827

CN Business
60,540

7,955

6,090

6,404

43,96533,2906,841

038,05332,636
4,932

8,265

8,436

29,282

6,973
69,027

7,668
54,136

5,059

26,44827,70429,7881Q
FY2020

2Q

3Q

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

37,03036,19327,756

4Q

29,362

24,223

1Q
FY202116

2Q

60,73636,992

3Q

4Q

1Q
FY20222Q

Forecast for the Fiscal Year Ending
March 31, 2022
President & Representative
Director Atsushi Tokushige
Copyright© TokyoDevice Device
LTD. AllLTD.
RightsCopyright© ElectronTokyo Electron
All Reserved.
Rights Reserved.

17

Assumptions of the Business Forecast for the Second
Half of the Fiscal Year Ending March 31, 2022 (1/2)
 Effects from the COVID-19 Pandemic Vaccinations are proceeding, but time will be required for the pandemic
to settle
 On the other hand, many manufacturing business are recovering before
the pandemic settles

 Conflict between the U.S. and China
 Due to the protraction of the conflict, an improvement in economic
activity resulting from reconciliation cannot be expected Increases in data communications volumes
 The trend of rising communications volumes is expected to continue due
to advances in DX and other developments
Results were generally as expected in the first half, and this willcontinue in the second half
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

18

Assumptions of the Business Forecast for the Second
Half of the Fiscal Year Ending March 31, 2022 (2/2)
 Status of semiconductor supply and demand The sense of tight supply and demand continued
through the first half, but there will be improvementin the second half

The sense of tight supply and demand willcontinue in the second half
Tight procurement of products and materials
will continue, but TED will strive to supply
them at the same levels as in the first half

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

19

Forecast of Financial Results for the Fiscal YearEnding March 31, 2022
FY2021

FY2022(Million yen)

YoY Change

Full year

1st Half
Actual

2nd Half
Forecast

Full Year
Forecast

ChangeRate of
Change143,268

82,78089,219172,000

28,731

20.1%

CN Business

23,933

10,002

13,79723,800

▲133

▲0.6%

EC Business(consolidated)

119,334

72,77775,422

148,200

28,86524.2%

EC Business

110,129

68,516

69,583

138,100

27,97025.4%

PB Business

9,205

4,261

5,838

10,100894

9.7%

Ordinary income(income ratio)

4,625

2,481

3,718

6,200

1,574

34.0%

2,056

65.4%

Net sales(3.2%)Net income
3,143(incomeratio)※ 当期純利益は親会社株主に帰属する当期純利益(2.2%)(3.0%)(4.2%)(3.6%)

2,646

2,553

5,200

(3.2%)(2.9%)(3.0%)* Pursuant to application of the Accounting Standard for Revenue Recognition and other standards starting at the beginning of
FY2022, the amounts in the above forecast of consolidated financial results are after application of those standards.
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

20

Priority Issues for the Second Half of the Fiscal YearEnding March 31, 2022
CN Business  Promote sales of security products

 Promote sales of storage and network products
 Expand the service business (maintenance &monitoring)

10,426

10,002
FY2022 (planned)
22/3月期…

148,200 (Million yen)

119,334
75,422
67,85851,47572,7770

private brand products

21

13,797EC Business(Consolidated)

PB Business  Reinforce development and sales of

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

13,507

FY2021
21/3月期 Promote sales of industrial and automotive
equipment Capture semiconductor manufacturing
equipment and industrial equipment related
demand23,800 (Million yen)0

EC Business  Delivery responses to supply problems
 Promote the cloud business

23,933

FY2021

FY2022 (planned)

9,205

10,100 (Million yen)

5,300

5,838

3,904

4,261

0

FY2021
21/3月期

FY2022 (planned)
22/3月期Measures for the Second Half of the Fiscal Year Ending
March 31, 2022 (1/2)
Promote Sales of Security Products

Zero Trust Security Products
Network security
Cloud security

Security monitoring& operation
Cloud security* Zero Trust Security
An approach to security whereby the safety of allaccesses, whether internal or external, isconfirmed
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

22

Endpoint security

Measures for the Second Half of the Fiscal Year Ending
March 31, 2022 (2/2)
Reinforce development and sales of private brand products

Enhance the functions of the TED Robot Center (TRC) Develop control systems
 Develop masterless picking
 Integrate FAST and TED
engineering Accelerate elemental
development and deployment ofapplications
 Share technologies, machineryand materials
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

23

Dividends Per ShareFY2020200

9/6 Revised

10/28 Revised

Interim

¥40

¥40

¥95

¥105

Year-End

¥50

¥85

¥95

¥100

205 (yen)

Dividend Payout Ratio

66
0

FY2022

FY2021

93

100
125

 Target of 40% consolidated
payout ratio

90
105

41.7

40.3

40.1

40.0

FY2018FY2019FY2020

FY2021

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

 Pay stable and continuous
dividends

39.5 (%)0.0%

FY2022(planned)24

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

25

Supplementary Materials

Copyright© TokyoDevice Device
LTD. AllLTD.
RightsCopyright© ElectronTokyo Electron
All Reserved.
Rights Reserved.

26

List of Supplementary Materials
 Medium-Term Management Plan VISION 2025

P28ーP31

 CN Business: Sales Component Ratios by Product Category

P32

 EC Business: Sales Component Ratios by Product Category

P33

 EC Business: Sales Component Ratios by Application

P34

 Product Categories

P35

 Changes in Orders Received and Backorders (EC Business)

P36

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

27

Medium-Term Management Plan VISION 2025
BUSINESS ENVIRONMENTOUR MISSION

Society 5.0 to Arrive

DRIVING DIGITAL TRANSFORMATION

Highly efficient smart society amid
Slow Economic Growth

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

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

28

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.

29



Manufacturing system manufacturer



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

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

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

Percentage of
total sales

Ordinary income ratio

CN Business20 %＞ 13 %EC Business

70 %

＞ 2%

PB Business

10 %

＞10 %

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

30

Medium-Term Management Plan: Results and Plan
VISION2020

VISION2025
More than 15.0%

Net sales (¥100 mill.)
Ordinary income ratio

11.4%

9.5%

ROE

8.8%

6.8%
3.2%

1,116

1.2%

0

FY2015

4.2%

4.3%
1,598

1,178

1.4%

FY20162,000 ±10％

1,318

1.0%

FY2017

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

1.7%

FY2018

1,720
1,410

2.2%

FY2019

1,353

2.6%

FY2020

31

1,432

3.2%

FY2021

More
than
5.0％
5.0%

3.6%

FY2022・・・

FY20250.0%

CN Business: Sales Component Ratios by ProductCategory
Security-Related Products
Network-Related Products

Storage-Related Products

FY2021
Interim

28%

22%

6%

44%

FY2022
Interim

30%

16%

10%

44%

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

Rate of
Change2.8%▲31.5%

Maintenance & Monitoring Services

Main Causes
Solid sales of equipment to data centers andcloud business operators

F5 Networks
Arista Networks
Extreme Networks

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

Pure Storage
Dell Technologies

Higher security demand for remote access and55.2% cloud services▲3.6%

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

Main Suppliers

Lower sales due to application of new accounting
standards
Increase in equipment maintenances provided toenterprises and telecommunications carriers
32

Nutanix
Netskope
TEDEC Business: Sales Component Ratios by ProductCategory
Memory ICs
FY2021
Interim

Analog ICs

Micro Processors

Logic ICs

26%

25%

14%

FY2022
Interim37%

Product

Rate of
ChangeAnalog ICs

103.8%

Micro Processors

22%

Software & Services
Boards, Electronic
PB
Components, etc.

5%
15%

17%
4%

Main Causes

6%

11%

7%

5% 6%

Main Suppliers

Contribution from expanded trade rights; industrial equipment,
automotive equipment, and consumer appliances increased

TI / NXP

26.3%

Computer peripherals and automotive equipment increased

TI / NXP/ Intel /Infineon

Logic ICs

52.2%

Industrial equipment, automotive equipment, and base stations increased

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

Memory ICs

10.0%

Automotive and industrial equipment increased

Infineon

Computer peripherals decreased due to application of new accounting
standards
Industrial equipment decreased due to cancellation of agency agreements
Telecommunications equipment increased

NXP / Western Digital /Hagiwara Solutions /ams / Cosel

POS and cloud business increased

Microsoft / McAfee

Design & Manufacturing Services, TED Nagasaki, and FAST increased

TED / TED Nagasaki /FAST

Boards, Electronic
Components, etc.

▲11.5%

Software & Services

23.5%

PB

9.9%

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

33

EC Business: Sales Component Ratios by Application
FY2021
Interim
FY2022
Interim
Application
Industrial
Equipment
Automotive
Equipment

Industrial Equipment

Automotive
Equipment

51%

18%

46%
Rate of
Change20%
Main Uses

Communications Devices
ConsumerComputers & Peripherals
Devices

18%
18%

6% 7%
8%

8%

TEL Trends

28.6%

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

Increases in analog ICs and logic ICs due to expansion ofsales rights
Increase in boards for semiconductor manufacturing
equipment and broadcasting equipment
Decrease in electronic components due to cancellation of
agency agreements

51.7%

Car navigation systems, car audio equipment,
autobody-related products

Increase in logic ICs due to increased inventories of partsand materials
Increases in analog ICs and processors due to expansion of
trade rights

Computers &Peripherals

49.2%

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

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

Communications
Devices

77.3%

Routers, transmission equipment, base stations

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

Consumer
Devices

53.8%

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

Increase in analog ICs for game consoles and electronic
musical instruments

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

34

Product Categories
Category
Network-related
products

CN
Business

Functions

Network load distribution devices
Ethernet switches

Distribute Internet connection loads
Switching hubs

Storage-related products

Flash storage

Connect to and store large volumes of data at highspeed

Security-related products

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

Maintenance & monitoring
services

Device maintenance services and security
monitoring services

Analog ICs

Analog ICs

ICs used in common in various applications

Micro processors

CPUs, DSPs

Brains of electronic devices, calculation and control
functions

Image processing ICs Communications andnetwork applications ICs
ASIC, PLD

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

SRAM, FRAM, MRAM
Flash memory

Memory ICs, readable/writable memory products, readonly products

Boards, power supplies, optical components

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

Software, cloud services

Software embedded in industrial equipment forenterprises
Provision of subscription services

Design and mass production contract
services, private brand products

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

Logic ICsEC
Business

Main Products

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

PB
Copyright © Tokyo Electron Device LTD. All Rights Reserved.

35

Changes in orders received and backorders(EC Business)(Million yen)
120,000

100,000

Orders received

103,318

Back orders (end of term)

70,513 69,027

80,00060,73654,13649,23060,00040,00036,99229,36230,81524,22325,96024,71820,00001Q
FY2021

Copyright © Tokyo Electron Device LTD. All Rights Reserved.

2Q

3Q

4Q

36

1Q
FY2022

2Q