Chapter 1

About Tokyo Electron

CEO’s Message
Further Enhancing Corporate Value

New Vision

A company filled with dreams and vitality that contributes totechnological innovation in semiconductors

Toshiki Kawai
Representative Director,
President & CEO

Current Business Conditions
I would like to express my sincere gratitude to all stakeholders for your continued support and patronage.
In recent years, industry, society and the lives of the
public have been significantly affected by a series ofchallenges. These include the spread of COVID-19; natural
disasters caused by climate change; geopolitical risks—typified by trade frictions and international conflicts—
and the human rights issues they engender.
On the other hand, in order to build a strong andresilient society in which economic activities do not stop
under such circumstances, various efforts are underway,
including the implementation of ICT (information andcommunication technology) and decarbonization topreserve the global environment.
Meanwhile, the transition to a data-driven society is
progressing at an unprecedented speed, and digitaltechnologies are now used furthermore: IoT, AI and 5G
are becoming more widespread, industries are growing
smarter, autonomous driving is evolving, and the muchhyped metaverse is seeing real-world applications.
For semiconductors, which are supporting the core ofthis shift, expectations for technological innovations such

3 TOKYO ELECTRON Integrated Report 2022

as larger capacity, higher speed, higher reliability andlower power consumption are limitless.
The semiconductor market exceeded US$500 billion
for the first time in 2021 and is expected to exceed US$1
trillion by 2030, more than double the current market.
The semiconductor production equipment market inwhich we operate was worth approximately US$90
billion in 2021; this represented a year-on-year increaseof 40%, and we expect the market to grow even further.
We formulated our Medium-term Management Plan
in May 2019, and have been working to achieve a financial
model with net sales of 2 trillion yen, an operating marginof 30% or more and ROE of 30% or more by fiscal 2024.
Against that background, the smooth progress of business in our focal fields mean that we have managed tooutperform the growth of the market. For fiscal 2022, weachieved net sales of 2,003.8 billion yen, an operating
margin of 29.9% and ROE of 37.2%. These are the best
results in the history of our company, and mean we haverealized our target financial model two years ahead ofschedule.
A number of factors contributed to these outstanding
results. Despite fluctuating markets, over the past five
years we have invested heavily in growth, including
investments worth approximately 600 billion yen in
research and development. As a result, we have been able
to continually create high-value-added products andservices. Also, we have cultivated abundant technologicalcapabilities as an industry leader and earned the absolute
trust of our customers based on our reliable technicalservices. Then, we have challenging spirit of our employees, who are capable of flexibly and rapidly adapting tochanges in the environment.
We would not have been able to achieve our best-ever results without the continued support of all our stakeholders, and I would like to take this opportunity to
express my sincerest gratitude.

Tokyo Electron celebrates its 60th fiscal year in 2022. In
pursuit of further growth, we have formulated a new
Vision to become “A company filled with dreams andvitality that contributes to technological innovation insemiconductors.” This Vision incorporates three perspectives, outlined below:• To pursue technological innovation in semiconductorsthat supports the sustainable development of the world• To aim for medium- to long-term profit expansion andcontinuous corporate value enhancement by utilizing
our expertise to continuously create high value-added
leading-edge equipment and technical services• To recognize that “Our corporate growth is enabled bypeople, and our employees both create and fulfill company values,” and to realize the Vision through engagement with our stakeholders
This new Vision is based on the idea of CSV (Creating
Shared Value). The concept behind CSV is that, by using
their expertise to resolve social issues, companies canimprove corporate value and realize sustainable growththrough the creation of social and economic value. We
are a semiconductor production equipment manufacturer and so, for us, CSV means contributing to the technological innovation in semiconductors, which are indispensable for the development of a dream-inspiring
society. We have termed this TSV (TEL’s Shared Value).
Through business activities based on TSV, we intend tocontribute both to achieving SDGs—which are goals
shared by the world—and to realizing a more abundant
future.
We have therefore set ourselves the even loftier goalsof further growth and world-class profits, and formulated
a new Medium-term Management Plan to achieve them.
By fiscal 2027, we intend to establish a strong financial
footing with net sales of 3 trillion yen or more, an operating margin of 35% or more and ROE of 30% or more. We
consider profit to be an important measure of value inour products and services; to this end, we seek to leverage our unique capabilities to create unprecedented
technologies with high added value. We will also redouble
our efforts to achieve key indicators for continuous
corporate value enhancement including ESG.
Achieving the world-class operating margin and ROE
detailed above requires our company to shift toward amore aggressive style of management. At the same time,
we will continue to focus on safety, quality, compliance,
employee engagement, risk management and security.
Our efforts on these areas may appear at first glance tobe defensive in nature; however, we believe that improving them will help our company become stronger. Goingforward, we will continue to engage in a “double-offensive” style of management, in which defensive measures
are turned into strengths, with the aim of further corporate value enhancement.

New Vision
New Medium-term Management Plan (by Fiscal 2027)
Net Sales≥¥3 trillion

Operating Margin

ROE

≥35%

≥30%

TSV: TEL’s Shared ValueContribute to technological innovation in semiconductors

TOKYO ELECTRON Integrated Report 2022

4

Chapter 1

About Tokyo Electron

Initiatives for a Double-offensive Management StyleBusiness Activities Rooted in Material Issues

Introduction of a Corporate Officer System

Advancing E-COMPASS

We have identified the following four material issues forachieving our new Medium-term Management Plan, andwe intend to make improvements in each of them.

Tokyo Electron is a leading company in the semiconductor production equipment industry, which is characterized by rapid technological innovations and dynamic
market changes. Toward our further growth, it is vitalthat we increasingly accelerate and optimize our decision-making. For this reason, we have introduced aCorporate Officer system, and established the Corporate
Officers Meeting as the highest decision-making body on
the executive side.
Corporate officers adopt the same perspective as theCEO, and hold responsibility for executing business acrossthe entire Group. Corporate Officers Meetings, whichhave been properly delegated authority by the Board of
Directors, will promote rapid decision making and flexible
execution of our business. So that the Board of Directors
can properly supervise these activities, corporate officers
will attend Board of Directors meetings and provide
explanations regarding the business they have executed.
In addition, corporate officers will apply the suggestionsof the Board to business they execute in an appropriate
and speedy manner.
The semiconductor industry will continue to grow,and we expect to expand the scale of our business from77 sites in 18 countries and regions currently to 100 sites
or more in the near future. The adoption of the Corporate
Officer system will enable us to promote a more aggressive style of management.
(For further details, refer to Corporate Governance on p. 49)

In June 2021, Tokyo Electron launched an environment-focused initiative entitled E-COMPASS (Environmental Co-creation by Material, Process and Subcomponent Solutions).
We will work together with our customers and partner companies to promote technological innovation andreduce the environmental impact of semiconductors
throughout the entire supply chain from the following
three main perspectives.

• Product CompetitivenessWe are a manufacturer, and we can drive company
growth through continuously creating next-generation
products with high added value, which will be neededby our customers in the future.
• Customer ResponsivenessAs the sole strategic partner, we will pursue technological innovation in semiconductors via strong relationshipbased on our customers’ trust.
• Higher Productivity
The scale of our business is expanding rapidly; we will
pursue operational efficiency in all our business activities, including research and development, procurement
and manufacturing, sales as well as installation andmaintenance services.
• Management Foundation
Based on a strong, profit-focused financial base, we willseek to strengthen the management foundation required for the above three material issues; more specifically, this includes governance, risk management, employee engagement, work-life balance and so on.

Four Material Issues

The Hierarchy of the Corporate Officers Meeting

Continuously create high value-added
next-generation products

Shareholders’ Meeting
Management& Supervision

Strong relationship based on trust
Sole strategic partner

Product
Competitiveness

Customer
ResponsivenessPursuit ofoperational efficiency

HigherProductivity

Management Foundation

5 TOKYO ELECTRON Integrated Report 2022

Business
Execution• Pursuing higher performance and lower consumption insemiconductors• Achieving both the process performance and environmental performance of equipment• Reducing CO2 emissions in all business activities
In addition to our medium-term environmental goals
for 2030, we set a long-term environmental goal of
reducing greenhouse gas emissions to net zero by 2050.
We are promoting various initiatives so that we canachieve net zero in Scope 1 and Scope 2 emissions—which are generated by our company—by 2040, and net
zero in Scope 3 emission—which are not generated from
our Group—by 2050. As a leader in environmental management, we will contribute to the preservation of the
global environment through advancing E-COMPASS.
(For further details, refer to E-COMPASS on p. 41)

Human Resources Initiatives
We believe that “Our Corporate growth is enabled bypeople, and our employees both create and fulfill
company values.” Accordingly, we intend to promote
employee motivation through the five management
perspectives below.

Based on the aforementioned, we are carrying out thefollowing initiatives:• Formulating a new Vision and promoting TSV (TEL’s
Shared Value)• Setting globally competitive financial targets, based on a
new Medium-term Management Plan
• Making plans to invest more than 1 trillion yen in researchand development over the next five years• Executing ESG initiatives aimed at continuous corporate
value enhancement• Implementing a shared, global human resources systemand performance-linked compensation
 reating opportunities for active dialogue between•Cmanagement and employees through employee meetings and workplace visits
We intend to carry out these initiatives in line withTEL Values, which delineate Tokyo Electron’s values, themindset that each employee must possess and the codesof conduct.

To Be a Company that Is Loved and Trusted by
All Stakeholders
Utilizing our expertise as an equipment manufacturer andour diverse management resources, we will provide
society with high-value-added technologies that theworld has never seen and only we can accomplish. Goingforward, we will continue to take on new challenges andevolve with the aim of becoming No. 1 in the world, andof being loved and highly trusted by all our stakeholders.
We look forward to your continued support and patronage.

Board of Directors
Representative Director,
President & CEO
Corporate Officers Meeting

Business Execution Organization

1. Awareness that our company and work contributes
to society
2. Dreams and expectations of the Company’s future
3. Opportunities to take on challenges
4. Fair evaluations that recognize employee efforts andglobally competitive rewards
5. Workplace with open atmosphere andpositive communication

Toshiki Kawai
Representative Director,
President & CEO

TOKYO ELECTRON Integrated Report 2022

6

Chapter 1

About Tokyo Electron

Corporate Principles System
Tokyo Electron has repeatedly revolutionized technology in a rapidlychanging industry, continuing to grow together with the times. In
2013 we refined our Management Policies, which was establishedat the time of our founding as our starting point, and also newly
defined the purpose of our existence and our mission in society as
our Corporate Philosophy.
In 2022, we set forth a new Vision toward further future growth
and re-defined our Corporate Principles system, which consists of a
Mission, Vision and Values, from a medium- to long-term perspective.

VisionMission(Corporate Philosophy/
Management Policies)

基本理念

VisionThe Vision describes Tokyo
Electron’s medium- to longterm business aspirations andthe direction of its near future.
It is a summary of top priorities to be addressed to realize
the Corporate Philosophy.

A company filled with dreams and vitality that
contributes to technological innovationin semiconductors

経営理念
We aim for medium- to long-term profit expansion and continuous corporate valueenhancement by utilizing our expertise to continuously create high value-added leadingedge equipment and technical services.

ValuesOur corporate growth is enabled by people, and our employees both create and fulfill
company values. We work to realize this vision through engagement with our stakeholders.

(TEL Values)

基本理念は、東京エレクトロンの存在意義 (Purpose)、

経営理念は、基本理念を実現するために、

社会的使命を定義したものです。

東京エレクトロンが大切にする
経営の規範を8つの項目で明示したものです。

企業活動の拠り所となる最も基本的な考え方です。

TEL Values

Corporate Philosophy
The Corporate Philosophy defines
the purpose of Tokyo Electron’s
existence and its mission in society.
It represents TEL’s basic way of
thinking that forms the foundation
for its corporate activities.

We strive to contribute to the developmentof a dream-inspiring society throughour leading-edge
technologies and reliable
最先端の技術と確かなサービスで、
service andsupport.
夢のある社会の発展に貢献します

TEL Values clearly defines
Tokyo Electron’s values as wellas the mindset and code of■ 利益についてconduct of each employee.

社会や産業の発展に貢献すべく、利益の追求を重視し企業価値の向上を目指します。

■ 成長について技術革新に常に挑戦し、事業拡大と市場創出により継続的な成長を図ります。

Management Policies
The Management Policies highlightthe management values thatTokyo Electron regards as essential
to achieving the objectives definedin its Corporate Philosophy. They
express the logic that underscores
our eight general rules ofmanagement.

7 TOKYO ELECTRON Integrated Report 2022

Tokyo Electron pursues technological innovation in semiconductors that supports thesustainable development of the world.

Ј Profit is Essential

Ј Scope of Business

The TEL Group aims to contribute to thedevelopment of society and industry and to
the enhancement of corporate value while
continually pursuing profit.

The TEL Group leads markets by providing
high-quality products in leading-edge
technology fields with a focus on electronics.

Ј Growth Philosophy

Ј Quality and Service

We will tirelessly take on the challenges oftechnological innovation to achieve
continuous growth through businessexpansion and market creation.

The TEL Group strives to understand the trueneeds to achieve customer satisfaction andsecure customer trust while continuously
improving quality and service.

Ј Employees

Ј Organizations

The TEL Group’s employees both create andfulfill company values, performing theirwork with creativity, a sense of
responsibility, and a commitment toteamwork.

The TEL Group builds optimal organizations
that maximize corporate value in which all
employees can realize their full potential.

Ј Safety, Health, and the Environment

Ј Social Responsibility

The TEL Group gives the highest
consideration to the safety and health of
every person connected with our businessactivities as well as to the global
environment.

Feeling a strong sense of corporate social
responsibility, we strive to gain the esteem ofsociety and to be a company where our
employees are proud to work.

Pride

Challenge

We take pride in providing high-value
products andservices.
■ 事業分野について

We accept the challenge of going beyond
what others are doing in pursuing our goalof becoming number one globally.

エレクトロニクスを中心とする
We offer our customers
cutting-edge
technological最先端技術分野において、products, along with the highest
We view changes as opportunities andlevel of quality高品質な製品を提供し市場をリードします。
and technical service, in the
respond to them flexibly and positively.
pursuit of total customer satisfaction.
We are tolerant of failure and consider it
We consider
to be an important
important to learn from the process and results.
■profit
品質とサービスについて
measure of value
in our products and services.
顧客の満足と信頼を得るために真のニーズを理解し、Ownership 品質とサービスの向上に努めます。

We will keep ownership in mind as we
think thingsand engage in■ through,組織についてthorough implementationin order to
社員は価値創出の源泉であり、個々の能力を最大限に発揮し、achieve
ourgoals.
創造性と責任感と強いチームワークで企業価値を最大化する最適な組織を■ 社員について

an awareness of problems
情熱をもって業務に取り組みます。 We always have築きます。

and tackle challenges with enthusiasm and asense of responsibility.
■ 安全と健康と環境について■ 企業の社会的責任について
We make decisions quickly and do what we
事業に関わるすべての人々の安全と健康、企業としての社会的責任を自覚し、
consider to be the best course of action.

Teamwork
We respect each other’s individuality andwe place a high priority on teamwork.
We create a workplace with an open
atmosphere and positive communication.
We establish relationships of trust with ourbusiness partners in order to facilitate
mutual growth.

および地球環境への配慮を第一に考えて社会から高く評価され社員が行動します。

誇りを持てる企業であるよう心がけます。

Awareness

We must have awareness and accept
responsibility for our behavior as
respectful members of society.
We strictly comply with laws and regulations
and the rules of society.
We give top priority to safety, health and theglobal environment.
We strive to become a company that local
communities hold in high esteem.

We have established the TEL Values,
and we will continue todevelop them accordingly in the future.

TOKYO ELECTRON Integrated Report 20228About Tokyo Electron

Chapter 1

Company Overview
Tokyo Electron operates worldwide as a leading company in semiconductor production equipment industry. By providing the Best
Products and Best Technical Service, we are aiming for medium- to long-term profit expansion and continuous corporate valueenhancement. We are also practicing our Corporate Philosophy by contributing to the development of a sustainable society throughour business.

Sales by Region (Consolidated)
Southeast Asia, and Others

88.4 (4.4%)

230.3

Tokyo Electron Korea
TEL Manufacturing and Engineeringof America

Tokyo Electron (Shanghai)Tokyo Electron (Shanghai) Logistic CenterTokyo Electron (Kunshan)

TEL Technology Center,
AmericaTokyo Electron Israel

TEL Venture CapitalTokyo Electron India

7 companies at 25 sites

20 companies at 52 sites in 17countries and regions

Worldwide total:

27companies* at 77sites in 18 countries and regions (consolidated)(13.4%)

1963

Single Chip
Microprocessor

Tokyo Electron
KyushuThermal Processing
SystemTokyo Electron FE
Tokyo Electron BP
Tokyo Electron Agency

TELINDY PLUS TM

1978

Tokyo Electron
Laboratories, Inc.
renamed Tokyo
Electron Ltd.

1980

Listed on the Second
Section of the Tokyo
Stock Exchange

1964

Tokyo Electron
Laboratories acquires
importing and sellingrights for diffusion
furnace manufactured by
Thermco Products Corp.
(U.S.) and begins sales

1968

TEL-Thermco
Engineering Co., Ltd.
began domestic
production ofdiffusion furnaces

9 TOKYO ELECTRON Integrated Report 2022

Listed on the First
Section of the Tokyo
Stock Exchange

Personal
Computer

Mobile Phone

Accelerating
globalization

1990s

Enhanced the Groupstructure in Japan by, forexample, establishing
service andmanufacturing
companies, and set up
overseas subsidiaries
throughout the world to
globalize operations

Tokyo Electron (TEL)
marks a major moveinto development andmarketing of FPD
production equipment

Started direct sales
and support
systems overseas

Export of semiconductor
production
equipment begins

1999

Category of industry on
the Tokyo Stock
Exchange First Sectionchanged from
“Wholesale Trade” to“Electric Appliances”

Atomic Layer
Deposition System

Trias +TM

NT333 TM
Silicon nitride film

Etching

Cleaning

Coater/Developer

Plasma Etch System Plasma Etch System

CLEAN TRACKTM LITHIUS ProTM Z

TactrasTM

Single Wafer
Cleaning System

EpisodeTM ULCELLESTATM-

Completed
Transistor before
Wiring

Photoresist

Wafer

Oxide/Nitride film deposition

2020s~
DigitalConsumerElectronics

Photoresist coating

Exposure

Development

Etching

Ashing/Cleaning

Isolation Formation/Gate Formation
Interconnect formation

Big Data

Gate ElectrodeTesting

Packaging/Inspection

Aspiration toward innovationand new growth

2006“TEL Values” formulated as codeof conduct

Single Wafer Deposition
System2021

Began publishingintegrated reports

Trias

TM

TOKYO ELECTRONINTEGRATEDREPORT 2021

2007

Cover Image

Established “TEL UNIVERSITY” tostrengthen human resource development“Digital × Green”

Intermetal dielectric film
Metal film

Plasma Etch System

Wafer Prober

Wafer Bonder/Debonder

TactrasTM / EpisodeTM UL

PrecioTM XL

Synapse TM V/
Synapse TM Z Plus

Wafer /Dicing Frame
Prober

WDF TM 12DP+

Completed
Semiconductor
Packaging

Metal film

Akasaka Biz Tower, 3-1 Akasaka 5-chome
Minato-ku, Tokyo 107-6325, Japan
Tel: +81-3-5561-7000
www.tel.com

TEL is a registered trademark or a trademark of Tokyo Electron Limited in Japan and/or other countries.

PR59-313

2022

Listed on thePrime Marketof the Tokyo
Stock Exchange

1990

1994

1986

■Assembly and Test Process (Back-end)

Tokyo Electron Ltd.

1984

Single Wafer
Deposition System

Silicon dioxide film

2000s~

Shifting to a fullscale manufacturer■Wafer Process (Front-end)

Lithography(Photoresist coating, Development)

Tokyo Electron Miyagi

TOKYO ELECTRON INTEGRATED REPORT 2021

Tokyo Electron
Laboratories, Inc. isestablished with capitalfrom Tokyo Broadcasting
System, Inc.

(27.9%）

Tokyo Electron (World Headquarters)

1980s~

Founded as technical specialized
trading company

4,365(19.0%)

361.5 (18.0%)(fiscal year ended
March 31, 2022)

Asia

381.1

Repetition

Mainframe
ComputerSouth Korea

Taiwan* Group companies in the process of being wound up are not shown on the map.

Transition of
Typical Applicationsof Semiconductors

15,634people(fiscal year ended
March 31, 2022)

268.0

Deposition

1960s~(12.8%)

billion yen

Tokyo Electron Singapore
Tokyo Electron
Technology Solutions(55.4%)

2,002

Semiconductor Manufacturing Process and Our Main ProductsTokyo Electron (Malaysia)

History

8,661(3.9%)* Fractions smaller than 100 million yen are truncated.

Tokyo Electron U.S. Holdings
Tokyo Electron America

Tokyo Electron Taiwan

Overseas:606

2,003.8

North America

TEL Magnetic Solutions

Japan:

566.2

North America(11.5%)TEL Solar Services

Japan

Japan

■Branch, Office (including Field Service), Sales Office

Tokyo Electron Europe

Europe107.9 (5.4%)

Number of Sites (As of March 31, 2022)(Unit: People)

China(28.3%)

Europe■Head office

Number of Employees by Region (Consolidated)(Unit: Billions of yen)

2015

Formulated the new Vision
and Medium-termManagement Plan

Re-emergence as the New TEL(Vision, Medium-term Management
Plan formulated and new Corporate
Logo created)“Technology Enabling Life”
formulated as corporate
message

Establishment of Tokyo Electron
Corporate Governance Guidelines

2019

Formulation of the Medium-termManagement Plan to further enhance
corporate value

Contact Formation

Interconnect
Formation

Wafer Probe Testing

Completed Integrated Circuit

Wafer Bonding/
DebondingInspection

Packaging/Assembly

Flat Panel Display (FPD) Production Equipment

FPD Coater/Developer
ExcelinerTM

FPD Plasma Etch/Ash System
ImpressioTM

FPD Plasma Etch/Ash System
BetelexTM

Inkjet Printing System for
manufacturing OLED display
EliusTMTOKYO ELECTRON Integrated Report 202210About Tokyo Electron

Chapter 1

Highlights of Key Indicators forContinuous Corporate Value Enhancement
At Tokyo Electron, policy decisions and various judgments are made in our business activities by clarifying management indicators,
which are important for medium- to long-term profit expansion and continuous corporate value enhancement, as well as
conducting monitoring and analysis.

Net Sales and Gross Profit Margin
Net sales (Billions of yen)

42.0

1,130.7

2018.3Operating Income and Operating Margin

Gross profit margin (%)

41.2
1,278.2

2019.340.1

40.4

Operating income (Billions of yen)

2,003.8
45.5

24.9

24.3
21.0

1,127.2

281.1

2021.3

R&D Expenses

Patents Owned
158.2

599.2

2022.32018.3(Billions of yen)

136.6

29.9

1,399.1

2020.3Operating margin (%)

113.9

22.9

16,767

17,473

18,1372018.32019.32020.3

18,692

19,572(Patents)

120.2

97.1

320.6

310.5
237.2

2019.32020.32021.32022.32018.32019.32020.32021.32022.32021.32022.3

Net sales reached a record high due to the rapid expansion of thesemiconductor production equipment market and an increase in market share.
Gross profit margin also reached a record high due to sales contributions fromnewly acquired processes as well as an increase in net sales

Net sales increased significantly as a result of steady response to the sudden
increased demand for semiconductor production equipment. The fixed cost
ratio declined and both operating income and operating margin reachedrecord highs

A record 158.2 billion yen was invested in R&D in fiscal 2022 to maintainand improve world-leading technological innovation. The investment
plan of approximately 600 billion yen over 5 years starting in fiscal 2018
was executed

No.1 in the semiconductor equipment industry with 19,572 patents owned
as of March 31, 2022. Our worldwide advantage in the area of intellectual
property has been sustained, contributing to maintaining and increasing
product competitiveness

Net Income Attributable to Owners of Parent and ROE1

Free Cash Flow2

Percentage of Respondents who Selected “Very Satisfied”
or “Satisfied” in the Customer Satisfaction Survey3
(%)
100.0
96.7

Workplace Incidents per 200,000 Work Hours (TCIR4)

Net income attributable to owners of parent (Billions of yen)
ROE (%)

29.0(Billions of yen)

93.3

199.5

26.5

204.3

21.8

139.7

0.27

149.5
59.4

242.9

185.2

2019.32020.32021.32022.32018.32019.32020.32021.32022.32018.3

Net income attributable to owners of parent reached a record high in linewith a significant increase in operating income. ROE also reached a record
high as a result of the significant increase in net income attributable toowners of parent in relation to net assets

Net Income per Share(Yen)

2019.32020.32022.32018.32019.32020.32021.32022.3The percentage of respondents who gave evaluations of “Very Satisfied” or“Satisfied” reached 100% in fiscal 2022. We are building a solid relationshipof mutual trust with customers by further enhancing customer satisfaction,
which we have valued highly since our founding

Achieved 0.30 for fiscal 2022. With our slogan “Safety First” as amanufacturer, we will continue to promote thorough safety awareness andcontinuous improvement activities while maintaining world-class standards

Cash Dividends per Share

Installation of Renewable Energy at Plants and Offices

Retention After Three Years of Joining the Company5(Japan)
94.7
94.1
93.8
93.4
93.0

(Yen)

1,403

2018.3

(%)

60

(%)

781

758

2022.32021.3

Free cash flow increased significantly from the previous fiscal year due to asignificant increase in net sales, despite the increase in procurement volume
and inventory to respond quickly to market growth6242021.32020.3

4 TCIR: Total Case Incident Rate

1,562.20
1,170.57

2019.33 For each question, average score is calculated for all customers who responded

2,807.84

1,513.58

0.23

82.6

2 Free cash flow = Cash flows from operating activities + Cash flows from investing
activities (excluding changes in time deposits and short-term investments)

1,245.48

0.30

0.20

1 ROE = Net income attributable to owners of parent/Average total equity × 100

2018.3

0.38

84.4

30.1
248.2

2018.3

217.7

437.0
37.2

588

2019.32020.32021.32022.32

2

2

2

2018.32019.32020.32021.32022.32018.32019.32020.32021.32022.3

5 Average in recent five years

Net income per share also increased due to the increase in net income
attributable to owners of parent

11 TOKYO ELECTRON Integrated Report 2022

A dividend of 50% of net income attributable to owners of parent was
distributed in accordance with the shareholder return policy. Cash dividends
per share reached a record highCompleted 60% of installations in fiscal 2022. Initiatives are being promoted
at a company-wide level to achieve a 70% reduction in CO2 emissions byfiscal 2031 (compared to fiscal 2019) and to achieve the further goal of net
zero emissions

Based on the recognition that employees both create and fulfill company
values, a high retention rate of 94.7% was maintained in fiscal 2022 throughcontinuous initiatives to improve employee engagement

TOKYO ELECTRON Integrated Report 202212