TOKYO ELECTRON ANNUAL REPORT 2020

PAGE

17CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Review of Operations
and Business Outlook

Interview with the CEO

Financial Section
Investor Information

Corporate Governance

Financial Review
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Changes in Net Assets
Consolidated Subsidiaries
Consolidated Statements of Cash Flows
Independent Auditor’s Report
Notes to Consolidated Financial Statements

Investor Information

Consolidated Balance Sheets
Tokyo Electron Limited and SubsidiariesAs of March 31, 2020 and 2019

Thousands ofU.S. dollars

Millions of yen

ASSETS

2020

2019

2020

Current assets:

Thousands ofU.S. dollars

Millions of yen

LIABILITIES AND NET ASSETS

2020

2020

2019

Current liabilities:¥ 247,959¥ 232,634$ 2,278,408

Short-term investments

90,447160,000

831,087

Income taxes payable

52,65457,671

483,826

Trade notes and accounts receivable

150,134

146,971

1,379,532

Customer advances

135,326

77,2471,243,462

(105)

(84)

(968)

Accrued employees’ bonuses

29,13933,139267,749

Inventories392,064

354,2193,602,544

Accrued warranty expenses

14,534

14,097

133,549

Prepaid consumption tax

69,034

49,617634,332

Other current liabilities

54,98647,277505,248

Other current assets

12,94939,538

118,986

382,578

304,882

3,515,380   Total current assets

962,484

982,897

8,843,923
Net defined benefit liabilities

60,74560,975558,168

Other liabilities

5,478

3,652

50,341   Total non-current liabilities

66,22464,628608,509  Total liabilities

448,802369,510

4,123,889  Common stock   Authorized: 300,000,000 shares
Issued: 157,210,911 and 165,210,911 shares
as of March 31, 2020 and 2019, respectively

54,961

54,961

505,018  Capital surplus

78,01178,011

716,815  Retained earnings

702,990

748,827

6,459,531   Treasury stock, at cost   1,685,556 and 1,252,517 shares
as of March 31, 2020 and 2019, respectively(29,310)(11,821)(269,326)

20,126

13,024

184,939

(52)

(34)

(485)

Cash and cash equivalents

Allowance for doubtful accounts

Trade notes and accounts payable   Total current liabilities

¥

95,938¥75,448$881,543

Non-current liabilities:

Property, plant and equipment:Land26,29826,849241,649

Buildings

179,379

169,682

1,648,251

Machinery and equipment

173,505

153,711

1,594,282

Construction in progress

29,413

19,643

270,273

Other property, plant and equipment

4,139

118

38,032412,736

370,005

3,792,489

Less: Accumulated depreciation

237,156

219,936

2,179,147   Net property, plant and equipment

175,580

150,069

1,613,342   Total property, plant and equipmentInvestments and other assets:

Net assets:
Shareholders’ equity

Investment securities

38,37427,853352,611

Accumulated other comprehensive income

Deferred tax assets

64,72963,925594,780   Net unrealized gains on investment securities

Net defined benefit assets

5,837

3,065

53,637   Net deferred losses on hedging instruments

Intangible assets

10,921

9,054

100,357   Foreign currency translation adjustments

(4,111)

4,366(37,783)

Other assets

21,98022,189201,971   Accumulated remeasurements of defined benefit plans(3,313)(6,585)(30,444)

Allowance for doubtful accounts

(1,413)(1,426)(12,986)

10,391

7,368

95,482   Total investments and other assets

140,431

124,661

1,290,371

829,692

888,117

7,623,747¥1,278,495¥1,257,627$11,747,636¥1,278,495¥1,257,627$11,747,636

Total assets
See accompanying Notes to Consolidated Financial Statements.

Share subscription rights
   Total net assets
Total liabilities and net assetsTOKYO ELECTRON ANNUAL REPORT 2020

PAGE

18CONTENTS

To Our Stakeholders

Business Overview
and Financial HighlightsInterview with the CEO

Review of Operations
and Business Outlook

Financial Section
Investor Information

Corporate Governance

Financial Review
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report
Consolidated Subsidiaries

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2020 and 2019

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2020 and 2019

Thousands ofU.S. dollars

Millions of yen2020

2019

2020

¥1,127,286
675,344451,941
214,649
237,292¥1,278,240
752,057
526,183
215,612
310,571$10,358,232
6,205,500
4,152,732
1,972,334
2,180,397

Other income (expenses):
Interest and dividend income
Foreign exchange gain, net
Revenue from grants
Gain on sales of property, plant and equipment
Gain on change in equity
Gain on sales of investment securities
Commission for purchases of treasury stock
Additional payment of customs duty
Maintenance and operation costs of closed facilities
Loss on sales and disposal of property, plant and equipment
Other, net
Income before income taxes

1,920
2,539
1,330
34
136
—
(174)
(173)
—
(483)
2,203
244,626

2,573
3,623
833
101
—
768
—
—
(57)
(967)
4,060
321,508

17,64623,333
12,228317
1,257—(1,599)(1,594)—(4,442)
20,243
2,247,788

Income taxes:
Current
DeferredNet income

65,177(5,757)
185,206

72,478801
248,228

598,892(52,904)
1,701,799¥ 185,206¥ 248,228$ 1,701,799

Net sales
Cost of sales Gross profit
Selling, general and administrative expenses
Operating income

Net income attributable to owners of parent

Yen

Per share of common stock:
Net income — basic
Net income — diluted
Net assetsCash dividends
See accompanying Notes to Consolidated Financial Statements.

¥1,170.57
1,164.02
5,267.96
588.00Investor Information

U.S. dollars¥1,513.58
1,507.22
5,371.78758.00$10.76
10.70
48.41
5.40

Thousands ofU.S. dollars

Millions of yen

Net income
Other comprehensive income (loss):
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments
Foreign currency translation adjustments
Remeasurements of defined benefit plans Share of other comprehensive income of associates accounted
for using the equity method
Total other comprehensive income (loss)
Comprehensive income 
Total comprehensive income attributable to:Owners of parent
See accompanying Notes to Consolidated Financial Statements.

2020

2019

2020

¥185,206¥248,228$1,701,799

7,099
6(8,461)
3,278(4,102)(272)(1,170)(106)

65,238
63(77,752)
30,127(45)

119(419)

1,878
187,084(5,531)
242,696

17,256
1,719,056

187,084

242,696

1,719,056

TOKYO ELECTRON ANNUAL REPORT 2020

PAGE

19CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Review of Operations
and Business Outlook

Interview with the CEO

Financial Section
Investor Information

Corporate Governance

Financial Review
Consolidated Eleven-Year Summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report
Consolidated Subsidiaries

Consolidated Statements of Changes in Net Assets

Consolidated Statements of Cash Flows

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2020 and 2019

Tokyo Electron Limited and Subsidiaries
Years ended March 31, 2020 and 2019

Investor Information

Thousands ofU.S. dollars

Millions of yen
Shareholders’ equity

Balance as ofMarch 31, 2018

Millions of yen

Accumulated other comprehensive income

Commonstock

CapitalsurplusRetainedearnings

Treasurystock

Net unrealized
gains oninvestment
securities

Net deferredgains(losses) on
hedging
instruments

Foreigncurrencytranslationadjustments

Accumulated
remeasurements ofdefined benefit
plans

Share
subscription
rightsTotal
net assets¥54,961¥78,011¥625,390¥ (7,518)¥17,134¥278¥ 5,507¥(6,618)¥ 4,363¥771,509

Cash dividends——(124,754)

—

—

—

—

—

—

(124,754)

Net income attributable toowners of parent——

248,228

—

—

—

—

—

—

248,228

Repurchase of treasurystock

—

—

—

(5,004)

—

—

—

—

—

(5,004)

Disposal of treasury stock

—

—

(36)

701

—

—

—

—

—

664

Net changes except forshareholders’ equity————(4,109)(313)(1,141)

33

3,005(2,526)

Balance as ofMarch 31, 2019¥54,961¥78,011¥748,827¥ (11,821)¥13,024¥ (34)¥4,366¥(6,585)¥ 7,368¥888,117

Cash dividends——(95,513)

—

—

—

—

—

—

(95,513)

Net income attributable toowners of parent——

185,206

—

—

—

—

—

—

185,206

Repurchase of treasury
stock

—

—

—

(154,096)

—

—

—

—

—

(154,096)

Disposal of treasury stock——(1,616)

2,684

—

—

—

—

—

1,067

Cancellation of treasurystock——(133,922)

133,922

—

————

—

Others——

10——————

10

Net changes except forshareholders’ equity

——

—

—

7,102

(17)

(8,478)

3,271

3,022

4,900

¥54,961¥78,011¥702,990¥ (29,310)¥20,126¥ (52)¥(4,111)¥(3,313)¥10,391¥829,692

Balance as ofMarch 31, 2020

Thousands of U.S. dollars
Shareholders’ equity

Commonstock

Balance as ofMarch 31, 2019

CapitalsurplusRetainedearnings$6,880,707

Net unrealized
gains oninvestment
securities

Net deferred
gains(losses) on
hedging
instruments

Foreigncurrencytranslation
adjustments

Accumulated
remeasurements ofdefined benefit
plans

Share
subscription
rightsTotal
net assets$ (108,627) $119,675

Treasury
stock$(320)$ 40,120$(60,507)$67,708$8,160,592

Cash dividends——(877,643)

—

—

—

—

—

—

(877,643)

Net income attributable toowners of parent——

1,701,799

—

—

—

—

—

—

1,701,799

Repurchase of treasury
stock

—

—

—

(1,415,935)

—

—

—

—

—

(1,415,935)

Disposal of treasury stock——(14,857)

24,666

—

—

—

—

—

9,809

Cancellation of treasury
stock

—

—

(1,230,569)

1,230,569

—

—

—

—

—

—

Others

—

—

94

—

—

—

—

—

—

94

Net changes except forshareholders’ equity

—

—

—

—

65,263(165)(77,903)

30,062

27,77345,030$505,018 $716,815$6,459,531$ (269,326) $184,939$(485)$(37,783)$(30,444)$95,482$7,623,747

Balance as ofMarch 31, 2020

$505,018 $716,815

Accumulated other comprehensive income

See accompanying Notes to Consolidated Financial Statements.

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Decrease in accrued employees’ bonuses
Increase in accrued warranty expenses
Interest and dividend income
Decrease (increase) in trade notes and accounts receivable
Increase in inventories
Increase (decrease) in trade notes and accounts payable
Decrease (increase) in prepaid consumption tax
Increase (decrease) in accrued consumption tax
Increase (decrease) in customer advances
Other, net
Subtotal
Receipts from interest and dividends
Income taxes paidNet cash provided by operating activities
Cash flows from investing activities:
Payment for purchases of short-term investments
Proceeds from maturities of short-term investments
Payment for purchases of property, plant and equipment
Payment for acquisition of intangible assets Proceeds from sales of shares of subsidiaries resulting in change
in scope of consolidation
Other, netNet cash provided by (used in) investing activities
Cash flows from financing activities:
Payment for purchases of treasury stock
Dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
See accompanying Notes to Consolidated Financial Statements.

2020

20192020¥244,626
29,107196(3,802)480(1,920)(5,370)(44,065)
22,337(19,508)
6,140
58,6305,828
292,679
2,326(41,888)
253,117¥321,508
24,323354(1,165)
2,968(2,573)
10,541(14,765)(31,752)
6,818(2,845)(22,077)(1,569)289,766
2,738(102,932)
189,572$2,247,788
267,459
1,806(34,940)
4,411(17,646)(49,345)(404,903)
205,248(179,257)
56,426
538,73153,5532,689,331
21,378(384,901)
2,325,808(100,449)
170,000(49,369)(3,383)(209,500)
165,500(46,517)(1,563)(922,998)
1,562,069(453,637)(31,092)—(845)
15,951

10,754(2,707)(84,033)—(7,771)
146,568(154,096)(95,513)(764)(250,374)(3,369)15,324
232,634¥247,959(5,004)(124,754)(3)(129,761)(1,020)(25,243)
257,877¥232,634(1,415,935)(877,643)(7,023)(2,300,602)(30,964)
140,810
2,137,598$2,278,408