TOKYO ELECTRON

Summary of Consolidated Financial Results for the Year Ended
March 31, 2022 (Japanese GAAP)May 12, 2022

Name of Listed Company:
Security Code:
URL:
Representative:
Contact:

Tokyo Electron Limited
8035
https://www.tel.com
Toshiki Kawai, Representative Director, President & CEO
Akifumi Matsumura, Vice President of Accounting Dept.
Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: May 31, 2022
Preparation of supplementary materials for the financial results: Yes
Earnings release conference: Yes (for investors and analysts)

Stock Exchange Listing: Tokyo

Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2021

March 31, 2022%

Net sales (Millions of yen)%

1,399,102

24.1

2,003,805

43.2

Operating income (Millions of yen)

320,68535.1

599,271

86.9

Ordinary income (Millions of yen)322,10331.5

601,724

86.8

Net income attributable to owners of parent (Millions of yen)

242,94131.2

437,07679.9

Net income per share of common stock (Yen):
Basic

1,562.20

2,807.84

Diluted

1,553.29

2,793.89

Return on equity (%)

26.5

37.2

Ordinary income to total assets (%)

23.8

36.4

Operating income to net sales (%)

22.9

29.9

Comprehensive income:Year ended March 31, 2022:

486,183 million yen, 59.0%

Year ended March 31, 2021:

305,801 million yen, 63.5%

Profit (loss) on equity method: Year ended March 31, 2022: ࠉ 1,721 million yen
Year ended March 31, 2021:

1,110 million yen

Note: From the beginning of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”
Note: (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended March 31, 2022 includes the effects
Note: of the new standards. Percentages of changes are based on consolidated financial results without the effects of theNote: new standards of the same period of the previous fiscal year.
(2) Consolidated Financial Position
As ofMarch 31, 2021

March 31, 2022

Total assets (Millions of yen)

1,425,364

1,894,457

Total net assets (Millions of yen)

1,024,562

1,347,048

71.1

70.5

6,512.18

8,572.45

Equity ratio (%)
Net assets per share (Yen)
Equity:1,335,152 million yen (as of March 31, 2022)
1,012,977 million yen (as of March 31, 2021)

Note: From the beginning of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”
Note: (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended March 31, 2022 includes the effects
Note: of the new standards.
(3) Consolidated Cash Flows
Year ended
March 31, 2021

March 31, 2022

Cash flows from operating activities

145,888

Cash flows from investing activities(18,274)(55,632)

Cash flows from financing activities(114,525)(167,256)

Cash and cash equivalents at end of period

265,993335,648

1

283,387

TOKYO ELECTRON

2. Dividends
Year ending

Year ended
March 31, 2021

March 31, 2023

March 31, 2022

(Forecast)

1Q-end dividends per share (Yen)

-

-

-

2Q-end dividends per share (Yen)

360.00643.00751.00---421.00760.00927.00

Annual dividends per share (Yen)

781.001,403.00

1,678.00

Total dividends (Millions of yen)

121,937

219,339

Payout ratio (%)

50.0

50.0

Dividend on equity (%)

13.3

18.6

3Q-end dividends per share (Yen)
Year-end dividends per share (Yen)

50.0

3. Financial Forecasts for the Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ending
September 30, 2022

March 31, 2023%%

1,100,000

18.0

2,350,000

17.3

Operating income (Millions of yen)

319,000

16.1

716,000

19.5

Ordinary income (Millions of yen)

319,000

14.8

716,000

19.0

Net income attributable to owners of parent (Millions of yen)

234,000

16.9

523,000

19.7

Net income per share (Yen)

1,502.41

Net sales (Millions of yen)

3,357.96

Notes(1)䚷Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): None
(2)䚷Changes in accounting policies, changes in accounting estimates and restatements
1. Changes in accounting policies along with changes in accounting standards: Yes
2. Other changes of accounting policies besides the number 1 above: None
3. Changes in accounting estimates: None
4. Restatements: None
Please refer to "Notes" on page 16 for further information.
(3) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of March 31, 2022:

157,210,911 shares

As of March 31, 2021:

157,210,911 shares

2. Number of shares of treasury stock
As of March 31, 2022:

1,461,581 shares

As of March 31, 2021:

1,659,611 shares

3. Average number of shares outstanding
Year ended March 31, 2022:

155,662,742 sharesYear ended March 31, 2021:

155,511,991 shares

Note: The number of shares of treasury stock includes the Company’s shares held by "Executive compensation Board Incentive Plan (BIP) trust"and "share-delivering Employee Stock Ownership Plan (ESOP) trust". (610,529 shares as of March 31, 2022, 615,237 shares as ofMarch 31, 2021)
In addition, these Company’s shares are included in the treasury stock which is deducted in calculating the average number of shares.

2

TOKYO ELECTRON(Reference) Non-consolidated Financial Results for the Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Operating results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2021

March 31, 2022%

Net sales (Millions of yen)%

1,292,883

25.6

1,842,535

42.5

Operating income (Millions of yen)

164,01561.2

306,63987.0

Ordinary income (Millions of yen)

260,10924.0

452,18273.8

Net income (Millions of yen)

211,449

19.1

358,065

69.3

Net income per share of common stock (Yen):
Basic

1,359.70

2,300.27

Diluted

1,351.94

2,288.84

Note: From the beginning of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”
Note: (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended March 31, 2022 includes the effects
Note: of the new standards. Percentages of changes are based on non-consolidated financial results without the effects ofNote: the new standards of the same period of the previous fiscal year.
(2) Financial position
As ofMarch 31, 2021
Total assets (Millions of yen)
Total net assets (Millions of yen)
Equity ratio (%)
Net assets per share (Yen)
Equity:March 31, 2022

1,034,506

1,439,595

625,913850,303

59.4

58.2

3,949.36

5,383.05

838,407 million yen (as of March 31, 2022)
614,327 million yen (as of March 31, 2021)

Note: From the beginning of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition”
Note: (ASBJ Statement No. 29, March 31, 2020). Each number for the period ended March 31, 2022 includes the effects
Note: of the new standards.
* Status of implementation of audit proceduresThis Summary of Consolidated Financial Results is outside the scope of external auditor's audit procedures under the Financial
Instruments and Exchange Act.
* Explanation of the appropriate use of financial forecast:
The financial forecasts and estimates in this Summary of Consolidated Financial Results are based on information available to
the Company at the time of report issuance and certain assumptions judged to be reasonable by the Company, and therefore
are not guarantees of future performance. Consequently, actual results may differ substantially from those described in thisSummary of Consolidated Financial Results. Please refer to "1. Overview of Operating Results and Consolidated Financial
Conditions (4) "Future Forecast" on page 7㻚 The Company plans to hold an online conference for investors and analysts on
May 12, 2022. Supplementary materials to be used at the conference will be posted on the Company's website.

3)LOH1DPH
TOKYO ELECTRON

1. Overview of Operating Results and Consolidated Financial Conditions
From the beginning of this fiscal year, the Company applies “Accounting Standards for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020). Comparisons between the same period in the previous year in the explanation ofoperating results and cash flows and comparisons between the end of the previous fiscal year in the explanation offinancial positions are made using figures from the consolidated results of the previous fiscal year prior to the applicationof the change in accounting standards.
For details, please refer to “Notes” on page 16 for further information.

(1) Overview of Operating Results(i) Business Environment during the Fiscal Year Ended March 31, 2022
During the fiscal year under review, despite the effects of the COVID-19 pandemic and heightened geopolitical risks, agradual recovery in the global economy has been observed.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, further growth in semiconductor production
equipment market is expected due to the growing importance of semiconductors, driven by the transition to a datasociety due to the expansion of communications technologies and efforts toward realizing a decarbonized society.

(ii) Overview of Profit and Loss during the Fiscal Year Ended March 31, 2022
In this environment, the consolidated business results for the fiscal year under review are as follows.
Net sales for the fiscal year increased 43.2% from the previous fiscal year to 2,003,805 million yen. Domestic net sales
increased 16.6% from the previous year to 230,368 million yen, while overseas net sales increased 47.6% to 1,773,437
million yen to account for 88.5% of net sales.
Cost of sales increased 30.9% to 1,091,983 million yen and gross profit increased 61.4% to 911,822 million yen. As aresult, the gross profit margin expanded by 5.1 points to 45.5%.
Selling, general and administrative (SG&A) expenses increased 28.0% to 312,551 million yen, while the ratio toconsolidated net sales declined by 1.9 points to 15.6%.
As a result, operating income increased 86.9% to 599,271 million yen and operating profit ratio increased 7.0 points to
29.9%. After netting of non-operating income of 5,980 million yen and non-operating expenses of 3,527 million yen,ordinary income increased 86.8% to 601,724 million yen.
Income before income taxes was 596,698 million yen (year-on-year growth of 88.2%) and net income attributable toowners of parent was 437,076 million yen (year-on-year growth of 79.9%).
As a result, net income per share was 2,807.84 yen compared to net income per share of 1,562.20 yen in the previous
fiscal year.

4)LOH1DPH
TOKYO ELECTRON(iii) Overview of Operations by Business Segment during the Fiscal Year Ended March 31, 2022
The overview of each business segment is as described below.

Semiconductor Production Equipment
Capital investment in semiconductors for logic/foundry has been robust in a wide range of areas, from cutting-edge tomature generations of semiconductors, driven by the digitalization of society. Furthermore, as the quantity of data being
handled continues to increase on an annual basis, capital investments in both DRAM and NAND flash memory continue
to see high levels of investment. Consequently, net sales to external customers in this segment during the fiscal year
under review were 1,943,843 million yen (year-on-year growth of 47.8%).

Flat Panel Display (FPD) Production Equipment
As capital investment for large-sized LCD panels for televisions has run its course, the overall manufacturing equipment
market for FPD TFT arrays has slowed. Meanwhile, capital investments in small and medium-sized OLED panels
continue in conjunction with displays installed in end products being converted from LCD panels to OLED panels.
Consequently, net sales to external customers in this segment during the fiscal year under review were 59,830 million
yen (year-on-year decrease of 28.6%).

Other
Net sales to external customers in this segment during the fiscal year under review totaled 131 million yen (year-onyear growth of 1.4%).

(For reference)
Consolidated Operating Results

䠄Millions of yen䠅Year ended
March 31,2021
Net Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia, and Others
FPD Production Equipment
OthersOperating Income
Ordinary Income
Net Income Attributable to Owners of Parent

1,399,102
1,315,200
195,821152,057
63,502279,938
245,637
325,844
52,397
83,772
129
320,685
322,103242,941

Year ended March 31, 2022
1Q

2Q

First
Half

3Q

452,049
437,924
54,861
43,911
13,411
95,30462,853
153,684
13,897
14,09035
141,791
142,630
100,363

480,464
467,838
53,96561,897
20,30993,507
102,548
108,825
26,785
12,592
32
132,855
135,13199,856

932,514905,763
108,827
105,808
33,721
188,812
165,401
262,50940,683
26,682
68
274,647
277,762
200,219

506,474
488,802
63,14776,893
17,062
93,04087,494132,217
18,946
17,64032
156,044
155,618
110,026

Note: Intersegment sales or transfers are eliminated.

5

4Q

SecondHalf

Full Year

564,817 1,071,291 2,003,805
549,278 1,038,080 1,943,843
56,927
120,075 228,902
85,363
162,257 268,065
57,17074,232 107,954
95,914
188,955 377,767
106,330
193,824 359,225
118,803
251,020 513,529
28,76847,71488,39815,50733,147
59,83031
63
131
168,579
324,623 599,271
168,344
323,962 601,724
126,830
236,856 437,076

)LOH1DPH
TOKYO ELECTRON(2) Overview of Consolidated Financial Conditions
Current assets at the end of the current fiscal year were 1,408,703 million yen, an increase of 393,006 million yen
compared to the end of the previous fiscal year. This was mainly due to an increase of 242,247 million yen in notes andaccounts receivable-trade, and contract assets, an increase of 87,735 million yen in cash and deposits, and an increaseof 58,500 million yen in inventories.
Tangible fixed assets increased by 26,110 million yen from the end of the previous fiscal year, to 223,078 million yen.
Intangible fixed assets increased by 5,376 million yen from the end of the previous fiscal year, to 22,540 million yen.
Investments and other assets increased by 44,599 million yen from the end of the previous fiscal year, to 240,135
million yen.
As a result, total assets increased by 469,093 million yen from the end of the previous fiscal year, to 1,894,457 million
yen.
Current liabilities increased by 140,917 million yen from the end of the previous fiscal year, to 468,578 million yen. This
was largely due to an increase of 57,920 million yen in income taxes payable, an increase of 30,301 million yen in tradenotes and accounts payable, and an increase of 20,832 million yen in customer advances.
Long-term liabilities increased by 5,689 million yen from the end of the previous fiscal year, to 78,829 million yen.
Net assets increased by 322,485 million yen from the end of the previous fiscal year, to 1,347,048 million yen. This waslargely due to an increase of 437,076 million yen resulting from recording net income attributable to owners of parent,a decrease resulting from the payment of 166,252 million yen in year-end dividends for the previous fiscal year andinterim dividends for the current fiscal year, and an increase of 27,367 million yen in net unrealized gains on investment
securities. As a result, the equity ratio was 70.5%.

(3) Overview of Consolidated Cash Flows
Cash and cash equivalents at the end of the current fiscal year increased by 69,655 million yen compared to the endof the previous fiscal year, to 335,648 million yen. The combined balance including 35,626 million yen in time deposits
and short-term investments with maturities of more than three months that are not included in cash and cash
equivalents was 371,274 million yen, an increase of 59,721 million yen from the end of the previous fiscal year. The
overall situation regarding cash flows for the fiscal year was as described below.
Cash flows from operating activities were positive 283,387 million yen, an increase of 137,499 million yen from theprevious fiscal year. The major positive factors were 596,698 million yen in income before income taxes, a 36,727
million yen in depreciation and amortization, and a 32,031 million yen increase in customer advances. The major
negative factors were 195,543 million yen increase in notes and accounts receivable-trade, and contract assets, a
106,098 million yen in income taxes paid, and a 100,309 million yen increase in inventories.
Cash flows from investing activities were negative 55,632 million yen compared to negative 18,274 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 56,153 million yen for the purchase of
fixed assets.
Cash flows from financing activities were negative 167,256 million yen compared to negative 114,525 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 166,252 million yen in dividends.

6)LOH1DPH
TOKYO ELECTRON(4) Future forecast
Although it will be necessary to continue to monitor the impact of COVID-19 and geopolitical risks etc., thesemiconductor production equipment market is expected further growth with the growing importance of semiconductors,
driven by the transition to a data society due to the expansion of communications technologies and efforts towardrealizing a decarbonized society. Based on the current business and economic environment, the consolidated financial
forecasts for next fiscal year (the year ending March 31, 2023) are expected to see an increase in revenue and earnings
as set out below.

Consolidated Forecast(Billions of yen, Y/Y change)
InterimFull Year
1,100.0
18.0% 2,350.0
17.3%
1,070.0
18.1% 2,295.0
18.1%
30.0
12.4%
55.0
(8.1)%
319.0
16.1%
716.0
19.5%
319.0
14.8%
716.0
19.0%
234.0
16.9%
523.0
19.7%

Year ending March 31, 2023
Net Sales
Semiconductor Production Equipment
FPD Production Equipment
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent
Note: Intersegment sales or transfers are eliminated.

Note: The financial forecasts and estimates stated in this announcement are based on certain assumptions judged to be reasonable by theCompany in light of information currently available concerning economic conditions in Japan and overseas, fluctuations in foreign exchange
rates, and other factors that may have an impact on performance. The Company does not promise that the forecasts or estimates will be
accurate.
They are therefore susceptible to the impact of many uncertainties, including market conditions, competition, the launching of new products(and their success or failure), and global conditions in the semiconductor related industry. Consequently, actual sales and profits may differ
substantially from the projections stated in this announcement.

(5) Basic Policy on Profit Allocation and Payment of Dividends for the Current and Next Fiscal YearsTEL utilizes capital reserves to raise corporate value through earnings growth and provide returns directly toshareholders by concentrating investment in high-growth areas and linking dividend payments to business performance.
Basic policy concerning shareholder return is as follows.

Shareholder Return Policy• Our dividend policy is to link dividend payments to business performance on an ongoing basis and a payout ratio
is around 50% based on net income attributable to owners of parent, with the conditions that an annual dividend
per share is not less than 150 yen.
Note: A dividend policy review is required if TEL does not generate net income for two consecutive fiscal years.
• TEL will flexibly consider share buybacks.
The year-end dividend for the current fiscal year (the year ended March 31, 2022) is scheduled to be 760 yen per
share. The dividend for the full year will be 1,403 yen per share, which includes the interim dividend of 643 yen per
share.

7)LOH1DPH
TOKYO ELECTRON

Dividends are forecasted for the next fiscal year (the year ending March 31, 2023) to be 1,678 yen per share forthe entire year which consists of an interim dividend of 751 yen and year-end dividend of 927 yen, in accordancewith the above consolidated forecast for net income attributable to owners of parent for the next fiscal year
pursuant to the stated dividend policy.

2Q-endDividend per share
Year-end

Total

Current fiscal year
(ended March 31, 2022)

643 yen

760 yen

1,403 yen

Next fiscal year
(ending March 31, 2023)

751 yen

927 yen

1,678 yen

2. Basic philosophy on the selection of accounting standards
The consolidated financial statements of TEL group have been prepared in conformity with accounting principles
generally accepted in Japan. In regard to the application of IFRS, we will pay close attention to domestic andinternational implementation adoption trends and respond accordingly.

8

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2021

March 31, 2022

ASSETS
Current assets
Cash and deposits

186,538

Trade notes and accounts receivable

191,700--

433,948

Securities

125,01497,000

Merchandise and finished goods

269,772

183,512

Notes and accounts receivable - trade, and contract assets

274,274

Work in process

80,742

144,330

Raw materials and supplies

64,828146,002

Prepaid consumption tax

82,704110,494

Others

14,493

19,301

(99)

(160)

1,015,696

1,408,703

208,475

233,553(113,679)(121,288)

Allowance for doubtful accounts
Total current assets
Long-term assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net

94,795112,264

159,634

181,306

Accumulated depreciation(119,554)(136,173)

Machinery and carriers, net

Machinery and carriers

40,08045,132

Land

26,92931,052

Construction in progress

22,391

20,095

Others44,35051,777

Accumulated depreciation(31,579)(37,244)

Others, net

12,77014,532

196,967

223,078

Others17,16322,540Total intangible fixed assets

17,16322,540Investment securities

105,065

144,972

Deferred tax assets

53,12845,654

Net defined benefit assets

12,021

16,186

Others26,72834,621

Allowance for doubtful accounts(1,407)(1,298)

195,536

240,135

409,667

485,754

1,425,364

1,894,457

Total tangible fixed assets
Intangible fixed assets

Investments and other assets

Total investments and other assets
Total long-term assets
Total assets

9

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2021

March 31, 2022

LIABILITIESCurrent liabilities
Trade notes and accounts payable

90,606

120,908

Income taxes payable

49,272

107,193

Customer advances

81,722

102,555

Accrued employees’ bonuses

34,25444,871

Accrued warranty expenses

14,41526,568Others

57,38966,482

Total current liabilities

327,661

468,578

Long-term liabilities
Net defined benefit liabilities

62,13762,533

Others

11,002

16,296

Total long-term liabilities

73,14078,829400,801

547,408

54,961

54,961

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,01178,011Retained earnings

835,240

1,104,983

Treasury stock, at cost

(30,744)(27,418)

Total shareholders' equity

937,468

1,210,537

66,12493,492(79)(52)

Accumulated other comprehensive income
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments
Foreign currency translation adjustments

10,44130,640

Accumulated remeasurements of defined benefit plans

(978)

535

Total accumulated other comprehensive income (loss)

75,508

124,615

11,585

11,895

1,024,562

1,347,048

1,425,364

1,894,457

Share subscription rights
Total net assets
Total liabilities and net assets

10

TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)
Year ended

Year ended

March 31, 2021

March 31, 2022

1,399,102

2,003,805

Cost of sales

834,157

1,091,983

Gross profit

564,945

911,822

Research and development expenses

136,648

158,256

Others107,610

154,295

Total selling, general and administrative expenses

244,259

312,551

320,685599,271521

616

Net sales

Selling, general & administrative expenses

Operating income
Non-operating income
Interest income
Dividend income

778

959

Share of profit of associates accounted for using the equity method

1,110

1,721

Others

3,082

2,683

Total non-operating income

5,492

5,980

3,147

2,447

926

1,080

Non-operating expenses
Foreign exchange loss
OthersTotal non-operating expenses

4,074

3,527

322,103

601,724

Gain on sales of fixed assets

24

71

Total unusual or infrequent profit

24

71

-

4,577

Provision for loss on liquidation of subsidiaries and associates

3,327

-

Others1,763

520

Total unusual or infrequent loss

5,090

5,097

Income before income taxes

317,038

596,698

Provision for income taxes and enterprise taxes

82,568

162,708

Deferred income taxes(8,471)(3,086)

Total income taxes

74,096

159,622

Net income

242,941

437,076

Net income attributable to owners of parent

242,941

437,076

Ordinary income
Unusual or infrequent profit

Unusual or infrequent loss
Additional payment of value-added tax

11TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Year ended

Year ended

March 31, 2021

March 31, 2022

242,941

437,076

45,982

27,374

Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities
Net deferred gains (losses) on hedging instruments

32-

Foreign currency translation adjustments

14,536

20,066

Remeasurements of defined benefit plans

2,266

1,594

41

70

62,86049,107305,801

486,183

305,801

486,183

Share of other comprehensive income of associates
accounted for using the equity method
Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

12

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2021

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

Retained earnings

78,011

Treasury stock

702,990(29,310)

Cumulative effects of changes
in accounting policies
Restated balance

Total shareholders'equity806,652-

54,96178,011

702,990(29,310)806,652

Changes of items during
the period
Cash dividends(109,542)(109,542)

Net income attributableto owners of parent

242,941

242,941

Purchase of treasury
stock
Disposal of treasury
stock(4,339)(4,339)(1,149)

2,906

1,757

Net changes except forshareholders' equity
Total changes of items
during the period--

132,249(1,433)130,816

Balance at end of period

54,96178,011

835,240(30,744)

937,468

Accumulated other comprehensive income
Net unrealized gains Net deferred gains(losses) on(losses) on hedging
investment securities
instruments
Balance at beginningof period

20,126

Foreign currencytranslation
adjustments(52)(4,111)

Accumulated
Total accumulated
remeasurements of other comprehensive
defined benefit plansincome (loss)(3,313)

12,648

Share subscription
rights

10,391

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

829,692-

20,126(52)(4,111)(3,313)

12,648

10,391

829,692

Changes of items during
the period
Cash dividends(109,542)

Net income attributableto owners of parent

242,941

Purchase of treasury
stock(4,339)

Disposal of treasury
stock

1,757

Net changes except forshareholders' equity

45,998(26)

14,553

2,335

62,8601,194

64,054

Total changes of items
during the period

45,998(26)

14,553

2,335

62,8601,194

194,870

Balance at end of period

66,124(79)

10,441(978)75,508

11,585

1,024,562

13

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2022

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

Retained earnings

78,011

835,240

Cumulative effects of changes
in accounting policies
Restated balance

Treasury stock(30,744)(753)

54,96178,011

Total shareholders'equity937,468(753)

834,486(30,744)936,714

Changes of items during
the period
Cash dividends(166,252)(166,252)

Net income attributableto owners of parent

437,076

437,076

Purchase of treasury
stock
Disposal of treasury
stock

(15)

(15)

(327)

3,341

3,014

Net changes except forshareholders' equity
Total changes of items
during the period--

270,496

3,325

273,822

Balance at end of period

54,96178,011

1,104,983(27,418)

1,210,537

Accumulated other comprehensive income
Net unrealized gains Net deferred gains(losses) on(losses) on hedging
investment securities
instruments
Balance at beginningof period

66,124Foreign currencytranslation
adjustments(79)

10,441

Accumulated
Total accumulated
remeasurements of other comprehensive
defined benefit plansincome (loss)(978)75,508

Share subscription
rights

11,585

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

1,024,562(753)

66,124(79)

10,441(978)75,508

11,585

1,023,809

Changes of items during
the period
Cash dividends(166,252)

Net income attributableto owners of parent

437,076

Purchase of treasury
stock

(15)

Disposal of treasury
stock

3,014

Net changes except forshareholders' equity

27,36726

20,1991,513

49,107310

49,417

Total changes of items
during the period

27,36726

20,1991,513

49,107310

323,239

Balance at end of period

93,492(52)

30,640535

124,615

11,895

1,347,048

14

TOKYO ELECTRON

Consolidated Statements of Cash Flows(Millions of yen)
Year ended

Year ended

March 31, 2021

March 31, 2022

Cash flows from operating activities
Income before income taxes

317,038

596,698

Depreciation and amortization

33,84336,727

199

206

Increase (decrease) in accrued employees' bonuses

4,612

9,540

Increase (decrease) in accrued warranty expenses

(176)

9,614

Provision for loss on liquidation of subsidiaries and associates

3,327

-

Decrease (increase) in trade notes and accounts receivable(37,736)--(195,543)

Decrease (increase) in inventories(17,226)(100,309)

Increase (decrease) in trade notes and accounts payable(8,255)18,892

Decrease (increase) in prepaid consumption tax(13,549)(27,675)

Increase (decrease) in customer advances(54,851)

32,031

Amortization of goodwill

Decrease (increase) in notes and accounts receivable - trade,and contract assets

Others

4,766

7,070

Subtotal

231,990387,252

1,669

2,232

Income taxes paid or refund (paid)(87,772)(106,098)

Net cash provided by operating activities

145,888283,387(45,000)(35,000)

Receipts from interest and dividends

Cash flows from investing activities
Payment for purchase of short-term investments
Proceeds from redemption of short-term investments

80,00045,014

Payment for purchase of fixed assets(53,806)(56,153)

Payment for acquisition of intangible assets(7,124)(8,950)

OthersNet cash used in investing activities

7,656

(542)

(18,274)(55,632)(4,339)(15)(109,542)(166,252)

(643)

(988)

(114,525)(167,256)

Cash flows from financing activities
Payment for purchase of treasury stock
Dividends paid
OthersNet cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

4,946

9,156

Net increase (decrease) in cash and cash equivalents

18,03369,655

Cash and cash equivalents at beginning of period

247,959

265,993

Cash and cash equivalents at end of period

265,993335,648

15

TOKYO ELECTRON

Notes
Going concern: None
Changes in accounting policies, changes in accounting estimates and restatements: Yes
Changes in accounting policies(i) Accounting Standard for Revenue Recognition
From the beginning of this fiscal year, the Company applies “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and recognizes revenue with the amounts expected to be received in exchange for the promised goods or services as thecontrol of such goods or services are transferred to customers.
Regarding sales of semiconductor and FPD (Flat Panel Display) production equipment, goods and set-up services to be transferred werepreviously identified as a single performance obligation and revenue was recorded at the time of the confirmation of set-up in principle. Goingforward, performance obligations related to goods and set-up services to be transferred for equipment are separately identified and revenue
is recognized when each performance obligation is satisfied, which is when equipment is delivered to customers and services related tosetting up equipment are completed.
In addition, in case over a certain quantity of equipment is transacted with a same customer, that could include special price transactions
corresponding to such as purchase quantities. For those transactions with special prices, although revenue was previously recognized basedon each order price, on the ground that sales prices of whole transactions fluctuate by such as future purchase quantity, the accounting
method is changed to estimate those special prices as variable consideration and include it in the transaction price only to the extent that it isprobable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with thevariable consideration is subsequently resolved.
The application of such changes in accounting policies follows the transitional treatment prescribed in the proviso of paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy
had been applied to periods prior to the beginning of this fiscal year, was added to or subtracted from the beginning balance of retained
earnings of this fiscal year.
In addition, “Trade notes and accounts receivable” presented under “Current assets” in the consolidated balance sheet for the previous
fiscal year was included in “Notes and accounts receivable - trade, and contract assets” from this fiscal year. In accordance with thetransitional treatment prescribed in the paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous fiscal
year have not been restated in accordance with the new approach to presentation.
As a result, in comparison with the method prior to the application of Accounting Standard for Revenue Recognition, the consolidatedbalance sheets of this fiscal year changed, and this was mainly due to an increase of 176,527 million yen in notes and accounts
receivable - trade, and contract assets, an increase of 16,906 million yen in work in process, a decrease of 135,496 million yen in merchandiseand finished goods, and a decrease of 47,472 million yen in customer advances. In the consolidated statements of income of this fiscal year,
net sales increased by 195,058 million yen, cost of sales increased by 88,084 million yen, and each of operating income, ordinary income
and income before income taxes increased by 106,974 million yen, accordingly.
The consolidated statements of cash flows of this fiscal year also changed, and this was mainly due to an increase of 106,974 million yen inincome before income taxes, an increase of 69,043 million yen in decrease (increase) in inventories, a decrease of 139,564 million yen in
decrease (increase) in notes and accounts receivable - trade, and contract assets, and a decrease of 35,234 million yen in increase(decrease) in customer advances.
Due to the reflection of the cumulative effect in net assets at the beginning of this fiscal year, the beginning balance of retained earnings in the
consolidated statements of changes in net assets of this fiscal year decreased by 753 million yen.
In addition, the effect on per share information of this fiscal year is described in "Per share information".
(ii) Accounting Standard for Fair Value Measurement
From the beginning of this fiscal year, the Company applies “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019). In accordance with the transitional treatment prescribed in the paragraph 19 of the Accounting Standard for Fair Value
Measurement and paragraph 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), new accounting
policies prescribed by the Accounting Standard for Fair Value Measurement is adopted prospectively.
There is no effect by this change on the consolidated financial statements.

16

TOKYO ELECTRON

Segment information(i) General information about reportable segments
A reportable segment is a component or an aggregated component of TEL Group. For each of the components, discrete financial
information is available and the operating result is regularly reviewed by management to make decisions about resources to beallocated to the segment and assess its performance.
The operation of TEL Group consists of segments by products and services based on business units (BUs), and TEL Groupidentifies as a reportable segment, "semiconductor production equipment (SPE)" and "flat panel display (FPD) production equipment".
Products of the SPE segment consist of coater/developers, etch systems, deposition systems, cleaning systems used in wafer processing,wafer probers used in the wafer testing process and other semiconductor production equipment, such as wafer bonders/debonders.
The SPE segment principally develops, manufactures, and sells such products, and provides services on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture offlat panel displays and inkjet printing systems used in the manufacture of OLED displays. The FPD production equipment segmentprincipally develops, manufactures, and sells such products, and provides services on them.
(ii) Means to measure net sales and profit or loss in each reportable segment
The method used to account for each reportable segment is similar to those applied to prepare consolidated financial statements.
Intersegment revenues or transfers are based on prevailing market prices.
As described in “Changes in accounting policies (i) Accounting Standard for Revenue Recognition”, the Company changed accounting
treatment for revenue recognition by adopting the Accounting Standard for Revenue Recognition from the beginning of this fiscal year,
and accordingly changed the methods relevant to measuring profits or losses of business segments in the same manner.
As a result, in comparison with the previous method, net sales of the semiconductor production equipment segment and the FPD
production equipment segment of this fiscal year increased by 188,757 million yen and 6,301 million yen, respectively.
In addition, segment profit of the semiconductor production equipment segment and the FPD production equipment segment increasedby 105,410 million yen and 1,563 million yen, respectively.
(iii) Net sales and profit or loss in reportable segments
Year ended March 31, 2022

(Millions of yen)
Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

1,943,843

59,830131

2,003,805-

2,003,805-

28,00028,000(28,000)-

1,943,843

59,83028,132

2,031,806(28,000)

2,003,805

667,437

3,874

698

672,010(75,312)596,698

Others *1

Total

Adjustments *2 Consolidated *3

Sales
Sales to external customers
Intersegment sales or transfers
Net sales
Segment profit (loss)-

Notes:*1. "Others" includes all other operating segments which are not included in the reportable segments, including group-wide logistic
services, facility maintenance and insurance.
*2. "Adjustments" for segment profit (loss) totaling (75,312) million yen mainly consists of research and development costs of (23,075)
million yen pertaining to the fundamental research and element research of TEL, additional payment of value-added tax of (4,577) million
yen, and other general and administrative costs that do not belong to reportable segments.
*3. Segment profit (loss) is adjusted against income before income taxes in Consolidated Statements of Income.

17

TOKYO ELECTRON(iv) Impairment loss on fixed assets in reportable segments
None(v) Amortization and balance of goodwill in reportable segments
As of and for the year ended March 31, 2022

(Millions of yen)
Semiconductor
Production Equipment

FPD Production
Equipment

Total Reportable
Segment

Amortization

206

-

206

Balance at end of the period

531

-

531

(vi) Income related to negative goodwill in reportable segments
None

18

TOKYO ELECTRONPer share information
Year ended
March 31, 2022
Net assets per share (Yen)8,572.45

Net income per share (Yen)

2,807.84

Fully diluted net income per share (Yen)

2,793.89

Notes:
1. Net income per share and fully diluted net income per share are calculated based on the following elements.
Net income per share (Yen)
Net income attributable to owners of parent (Millions of yen)

437,076

Net income not pertaining to owners of common stock (Millions of yen)-

Net income attributable to owners of parent pertaining to common stock(Millions of yen)

437,076

The average number of common stock (Thousands of share)

155,662

Fully diluted net income per share (Yen)The adjustments to net income attributable to owners of parent (Millions of yen)-

Increase in common stock (Thousands of share)

777[Share subscription rights (Thousands of share)][777]

Details of dilutive shares, not included in the computation of fully diluted
net income per share as there is no dilution effect.

㻙

2. The shares of the Company held by "Executive compensation Board Incentive Plan (BIP) trust" and "share-delivering Employee
Stock Ownership Plan (ESOP) trust", which are recorded in “Treasury stock, at cost” under shareholders’ equity, are included in thetreasury stock which is deducted from the number of shares issued and outstanding as of the end of the period when calculating
net assets per share. The shares held by the trusts are also included in the treasury stock which is deducted from the number ofshares used to calculate the average number of shares outstanding in the period when calculating net income per share and fully diluted
net income per share.
The number of treasury shares deducted in the calculation of net assets per share was 610 thousand shares as of the end of
this fiscal year, and the average number of treasury shares deducted in the calculation of net income per share and fully diluted
net income per share was 612 thousand shares in this fiscal year.
3. As described in “Changes in accounting policies (i) Accounting Standard for Revenue Recognition”, the Company changed accounting
treatment for revenue recognition by adopting the Accounting Standard for Revenue Recognition from the beginning of this fiscal year,
and follows the transitional treatment prescribed in the proviso of paragraph 84 of the Accounting Standard for Revenue Recognition.
As a result, net assets per share of this fiscal year increased by 471.69 yen, net income per share increased by 476.79 yen, and fully
diluted net income per share increased by 474.42 yen.
Significant subsequent event
None

19