TOKYO ELECTRON ANNUAL REPORT 2018

PAGE3CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Review of Operations
and Business Outlook

Interview with the CEO

Innovation Drives the Evolutionof Semiconductors

Financial Section
Investor Information

Corporate GovernanceBusiness Overview and Financial Highlights

Business Overview and Financial Highlights

Semiconductor
Production
Equipment
4.6%
Europe 9.2%
9.9%

11.3%

Japan

13.8%

Taiwan16.0%

South Korea

35.2%

Coater/Developer
CLEAN TRACK ™
LITHIUS Pro™ Z

P Etch System

P Wafer Prober

ALD System
NT333™

Plasma Etch System
Tactras™

Net SalesNet Sales
and Grossand Gross
ProfitProfit
MarginMargin(Billions of(Billionsyen) of yen)(Billionsyen) of yen)（%） （%） of(Billions48

320
48

28

600

663.9 663.9
600 612.2
613.1 613.1
612.2

300

36
42.0 42.0
799.7 799.7

33.0 33.0

24300

1228210

Overseas204.3 204.3
30

240

160
24160

1280

805.3

21
281.1 281.1
19.5 19.5
17.6 17.6

14.4 14.4

155.6 155.6

116.8 116.8
88.1 88.1
5.3

1421140

140

1470

70

29.0 29.0
20
19.1 19.1
13.0 13.0
11.8 11.8
115.2 115.2

1070

96.2%

300(Billions of(Billionsyen) of yen)

(Yen)(Yen)

(Yen)

160

1,400 1,400

800

800

600

600

400400160

139.7 139.7
20120120

1080800118.0 118.0404001401415

Net Sales
Net Sales

1516

1617

1718

Gross Profit
GrossMargin
Profit Margin

1800

032.2
32.2

14141501516

OperatingOperating
IncomeIncome

1617

1718

18

OperatingOperatingMarginMargin

0-70-10-70

1414151516

1617

1718-1018

Net Income(Loss) Attributableto Ownersof Parent
Net Income(Loss) Attributableto Ownersof Parent
ROE ROE

The amounts in this report in billions, millions and thousands of yen; thousands of U.S. dollars; and thousands of shares as of and for the years ended March 31, 2016 and prior are rounded to the nearest unit.
Such amounts as of and for the years ended March 31, 2017 and onward, including year-on-year differences, are truncated at the nearest unit. Accordingly, totals for the years ended March 31, 2017 and onward
do not necessarily agree with the sum of the corresponding individual amounts.

01,245.48
1,245.48
1,050 1,050
700

700

350

350

461.10461.10
401.08401.08

352 352
20001415

1516

16171718

1814237 237

200

143 1430-350 -350

Free Cash Flow = Cash flows from operating activities + Cash flows
from investing activities (excluding changes in short-term
investments with ­original maturities of less than one year)

624 624702.26702.26-108.31-108.31014(Yen)033.4 33.4

-3.3 -3.3
0

Inkjet Printing System for
Manufacturing OLED Panels
Elius™ 2500

CashCashDividends
Dividends
per Shareper Share

64.2 64.2
60.4 60.4

0-19.4-19.4

FPD Plasma Etch/Ash System
Betelex™

Net Income
Net Income(Loss)(Loss)
per Shareper Share77.9 77.9
71.9 71.9
7

Flat panel displays (FPDs) are an essential part of everyday life,
employed in such products as TVs, smartphones and tablets.
Going forward, FPDs are expected to see new growth in demand
for such applications as virtual reality (VR) and augmented reality (AR) head-mounted displays. Tokyo Electron supplies coater/developers and etch/ash systems for manufacturing FPDs alongwith solid technical support and service. We also offer an inkjet
printing system for manufacturing OLED panels using largesized substrates to take advantage of the expanding OLED display market.

3.8%

Free Cash
Free Cash
FlowFlow

24.9 24.9
240
36

P Inkjet Printing System for Manufacturing OLED Panels

FPD Coater/Developer
Exceliner™

（%） （%）

210

P FPD Etch/Ash SystemJapan

Wafer Prober
Precio™ XL(Billionsyen) of yen)（%） （%） of(Billions

P FPD Coater/Developer

Sales by Region

Net Income
Net Income(Loss)(Loss)
Attributable
Attributableto Owners
to Ownersof Parentof Parent
and ROE
and ROE

320

1,130.71,130.7
40.2 40.2
40.3 40.3
39.6 39.6
900Single Wafer Cleaning System
CELLESTA™ -i

Single Wafer Deposition SystemTriase +™

OperatingOperating
IncomeIncomeand andOperatingOperatingMarginMargin1,200 1,200900

FPD
Production
Equipment

Semiconductor devices are broadly used in mobile devices, suchas smartphones and tablets, as well as the data center serversthat are indispensable for the processing of big data. With thearrival of the IoT, semiconductor applications will expand in all
fields, from consumer electronics and automobiles to medicine
and healthcare. Tokyo Electron provides a wide range of semiconductor production equipment used to manufacture suchsemiconductors along with superior technical support and service.
The main categories of our product lineup are coater/developers,
etch systems, deposition systems and cleaning systems used inwafer processing as well as wafer probers used in the wafer
testing process. In addition, we also offer such products as electrochemical deposition systems and wafer bonders/debonders
used in advanced packaging processes.

Southeast Asia

North America

P Cleaning System

P Deposition System

Sales by Region

China

P Coater/Developer

1415

1516

1617

1718

18

50

50

14

1415

01516

1617

1718

18