TOKYO ELECTRON

Summary of Consolidated Financial Results for the First Quarter Ended June 30, 2019
(Japanese GAAP)
July 26, 2019
Name of Listed Company:
Security Code:
URL:
Representative:
Contact:

Tokyo Electron Limited
8035
https://www.tel.com
Toshiki Kawai, Representative Director, President & CEO
Ken Sasagawa, Vice President of Accounting Dept.
Telephone: +81-3-5561-7000
Scheduled start date of dividends payment: Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly 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 Three Months Ended June 30, 2019 (April 1, 2019 to June 30, 2019)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Three months ended
June 30, 2018

June 30, 2019%%

Net sales (Millions of yen)

295,569

25.0

216,421 (26.8)

Operating income (Millions of yen)

72,41832.2

42,552 (41.2)

Ordinary income (Millions of yen)

75,212

36.4

44,591 (40.7)

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

55,74135.1

31,894 (42.8)

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

339.65

195.68338.34

194.72Three months ended June 30, 2019 : 27,071 million yen, (50.0)%
Three months ended June 30, 2018 : 54,152 million yen, 22.9%(2) Consolidated Financial Position
As ofMarch 31, 2019
Total assets (Millions of yen)
Total net assets (Millions of yen)

1,149,391

888,117819,354

70.0

70.3

Equity ratio (%)
Equity:June 30, 2019

1,257,627

807,956 million yen (as of June 30, 2019)
880,748 million yen (as of March 31, 2019)

2. Dividends
Year ended

Year ending

March 31, 2019

March 31, 2020
(Forecast)

1Q-end dividends per share (Yen)--

2Q-end dividends per share (Yen)

413.00193.00--Year-end dividends per share (Yen)

345.00309.00

Annual dividends per share (Yen)758.00502.003Q-end dividends per share (Yen)

Note: Revision to the dividends forecast most recently announced: None

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TOKYO ELECTRON

3. Financial Forecasts for the Year Ending March 31, 2020 (April 1, 2019 to March 31, 2020)
Note: Percentages for year ending March 31, 2020 indicate changes from the previous fiscal year, and those for six months ending
September 30, 2019 indicate changes from the same period of the previous fiscal year.
Six months ending

Year ending

September 30, 2019

March 31, 2020

(Cumulative)%%

Net sales (Millions of yen)

490,000 (29.1)

1,100,000 (13.9)

Operating income (Millions of yen)

85,000 (51.5)

220,000 (29.2)

Ordinary income (Millions of yen)

85,000 (53.1)

220,000 (31.6)

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

63,000 (53.4)

164,000 (33.9)

Net income per share (Yen)

388.83

1,015.21

Note: Revision to the financial forecasts most recently announced: None

Notes
(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): None

(2) Adoption of special accounting methods for preparation of quarterly financial statements: Yes
Please refer to "Notes" on page 11 for further information.

(3) 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

(4) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of June 30, 2019 :

165,210,911 shares

As of March 31, 2019:

165,210,911 shares

2. Number of shares of treasury stock
As of June 30, 2019 :

4,151,346 shares

As of March 31, 2019:

1,252,517 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Three months ended June 30, 2019:

162,993,433 shares

Three months ended June 30, 2018:

164,113,708 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". (249,626 shares as of June 30, 2019, 249,701 shares as of March 31, 2019)
In addition, these Company’s shares are included in the treasury stock which is deducted in calculating the average number of shares.

* Status of implementation of quarterly review proceduresThis Summary of Consolidated Financial Results is outside the scope of external auditor's quarterly review 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. Qualitative Information on Financial Results for the Current
Quarter (3) Description of Financial Estimates Information such as Consolidated Financial Forecasts" on page 6.
The Company plans to hold an earnings release conference for investors and analysts on July 26, 2019. Supplementary materials
to be handed out at the conference will be posted on the Company's website.

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TOKYO ELECTRON

1. Qualitative Information on Financial Results for the Current Quarter(1) Description of Operating Results
During the first quarter of the current fiscal year, growth of the global economy was sluggish with signs of weakness in
China and other parts of Asia, moderated by continued strong growth in the U.S. economy and a trend toward
recovery in Europe.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, the market has entered an adjustment
phase due to factors such as a slowdown in capital investment in data centers and slowing demand for smartphones.
However, further market expansion in the medium to long term is expected due to new technologies such as IoT,
artificial intelligence (AI) and the next-generation communication standard (5G).
Under these circumstances, the consolidated financial results (cumulative) for the first quarter of the current fiscal
year were net sales of 216,421 million yen (year-on-year decrease of 26.8%), operating income of 42,552 million yen(year-on-year decrease of 41.2%), ordinary income of 44,591 million yen (year-on-year decrease of 40.7%) and net
income attributable to owners of parent of 31,894 million yen (year-on-year decrease of 42.8%).

The overview of each business segment is as described below.

(i) Semiconductor Production Equipment
Although the capital investment growth trend in logic semiconductors to support next generation technology remains
intact, capital investment in DRAM and 3D NAND flash memory has entered a temporary adjustment phase as
memory manufacturers review their capital investment plans due to a slowdown in demand for data centers. However,capital investment is expected to recover as the balance between supply and demand improves going forward.
Consequently, net sales to external customers in this segment for the first quarter of the current fiscal year were198,137 million yen (year-on-year decrease of 29.3%).

(ii) Flat Panel Display (FPD) Production Equipment
There are signs of adjustment of investment in capital investment for small to medium-sized OLED panels for
smartphones, and capital investment for large-sized LCD panels for televisions is also slowing down, but it isexpected that demand will recover beginning in the second half of the year. Consequently, net sales to externalcustomers in this segment for the first quarter of the current fiscal year were 18,229 million yen (year-on-year growthof 20.6%).

(iii) Other
Net sales to external customers in this segment for the first quarter of the current fiscal year were 54 million yen(year-on-year decrease of 0.9%).

3

TOKYO ELECTRON(For reference)

Consolidated Operating Results

Net Sales
Semiconductor Production Equipment
Japan
North America
EuropeSouth Korea
TaiwanChina
Southeast Asia
FPD Production Equipment
Other
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent(Millions of yen)
FY 2019
Full Year

1Q

2Q

3Q

4Q

1,278,240
1,166,781
206,035
131,931
93,113
305,422
162,922206,91460,440111,261197
310,571
321,662
248,228

295,569
280,400
51,14628,496
17,75588,98626,31554,964
12,734
15,11355
72,41875,21255,741

395,465
358,057
58,04845,91031,34586,55848,05771,306
16,83037,35453
103,000
106,034
79,553

268,169
239,525
54,09522,767
18,61360,96029,38438,09915,60428,59846
58,73560,66048,831

319,036
288,798
42,74334,75725,39868,917
59,16542,544
15,27130,19542
76,41679,754
64,101

FY 2020
1Q
216,421
198,137
32,53428,55020,27036,903
48,33327,0904,454
18,22954
42,552
44,591
31,894

Note: Intersegment sales or transfers are eliminated.

(2) Description of Financial Conditions(i) Financial Conditions
Current assets at the end of the first quarter of the current fiscal year were 871,320 million yen, a decrease of 111,576
million yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 94,000 million yen
in short-term investments included in securities, a decrease of 50,612 million yen in trade notes and accounts
receivable, and an increase of 42,251 million yen in cash and deposits.
Tangible fixed assets increased by 1,877 million yen from the end of the previous fiscal year, to 151,946 million yen.
Intangible fixed assets decreased by 203 million yen from the end of the previous fiscal year, to 8,851 million yen.
Investments and other assets increased by 1,665 million yen from the end of the previous fiscal year, to 117,273
million yen.
As a result, total assets decreased by 108,236 million yen from the end of the previous fiscal year, to 1,149,391
million yen.
Current liabilities decreased by 39,641 million yen from the end of the previous fiscal year, to 265,240 million yen.
This was largely due to a decrease of 40,963 million yen in income taxes payable, a decrease of 24,153 million yen in
accrued employees’ bonuses, and an increase of 27,480 million yen in customer advances.
Long-term liabilities increased by 167 million yen from the end of the previous fiscal year, to 64,795 million yen.
Net assets decreased by 68,762 million yen from the end of the previous fiscal year, to 819,354 million yen. This waslargely due to an increase of 31,894 million yen in net income attributable to owners of parent, a decrease resulting
from the payment of 56,651 million yen in year-end dividends for the previous fiscal year, and a decrease of 43,253
million yen resulting from the purchase of treasury stock. As a result, the equity ratio was 70.3%.

4

TOKYO ELECTRON(ii) Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year increased by 23,251 million yen
compared to the end of the previous fiscal year, to 255,886 million yen. The combined balance including 85,000
million yen in time deposits and short-term investments with maturities of more than three months that are notincluded in cash and cash equivalents was 340,886 million yen, a decrease of 51,748 million yen from the end of theprevious fiscal year. The overall situation regarding cash flows during the first quarter of the current fiscal year was as
described below.
Cash flows from operating activities were positive 59,466 million yen, an increase of 7,996 million yen compared tothe same period of the previous fiscal year. The major positive factors were a 48,762 million yen decrease in tradenotes and accounts receivable, 44,572 million yen in income before income taxes, a 35,451 million yen decrease inprepaid consumption tax, and a 27,746 million yen increase in customer advances. The major negative factors were
52,064 million yen in payment of income taxes, a 29,534 million yen increase in inventories, and a 23,961 million yen
decrease in accrued employees’ bonuses.
Cash flows from investing activities were positive 66,452 million yen compared to negative 21,153 million yen in thesame period of the previous fiscal year. This was largely due to an inflow of 75,000 million yen from a decrease intime deposits and short-term investments and the payment of 8,088 million yen for the purchase of fixed assets.
Cash flows from financing activities were negative 99,994 million yen compared to negative 56,948 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 56,651 million yen in dividends and43,253 million yen for the purchase of treasury stock.

Consolidated Statements of Cash Flows (Summary)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable
Other, net
Cash flows from investing activities
Decrease (increase) in time deposits and short-term investments
Other (Acquisition of fixed assets)
Cash flows from financing activities
Purchase of treasury stock
Other (Dividends paid)
Effect of exchange rate changes on cash and cash equivalents

Three months ended
June 30, 2018

(Millions of yen)Three months ended
June 30, 2019

51,47075,205
5,078
8,403(37,454)(7,929)8,166(21,153)(9,000)(12,153)(56,948)(0)(56,948)(657)

59,46644,572
6,081
48,762(29,534)
945(11,360)
66,45275,000(8,547)(99,994)(43,253)(56,740)(2,673)

Net increase (decrease) in cash and cash equivalents(27,289)

23,251

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

257,877
230,588

232,634
255,886

Cash and cash equivalents, time deposits and short-term investments with maturities ofmore than three months

355,588

340,886

5

TOKYO ELECTRON(3) Description of Financial Estimates Information such as Consolidated Financial Forecasts
There are no changes in the consolidated financial forecast for the fiscal year ending March 31, 2020 from theforecasts released at the time of the previous announcement on April 26, 2019.

Note: The financial forecasts and estimates stated in this Summary of Consolidated Financial Results are based on certain assumptions
judged to be reasonable by the Company 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 theforecasts 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 described in this Summary of Consolidated Financial Results.

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TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2019

June 30, 2019ASSETS
Current assets
Cash and deposits

177,634

219,886

Trade notes and accounts receivable

146,971

96,358

Securities

215,000

121,000

Merchandise and finished goods

234,102

256,718

Work in process

62,78571,975

Raw materials and supplies

57,331

52,371Others89,15653,123

(84)

(112)

982,897

871,320150,069

151,946

Others

9,054

8,851

Total intangible fixed assets

9,054

8,851

117,033

118,688

Allowance for doubtful accounts
Total current assets
Long-term assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total long-term assets
Total assets

7(1,426)(1,415)

115,607

117,273274,730

278,070

1,257,627

1,149,391

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2019

June 30, 2019

LIABILITIESCurrent liabilities
Trade notes and accounts payable

75,44875,058

Income taxes payable

57,671

16,707

Customer advances

77,247

104,728

Accrued warranty expenses

14,097

12,431Other allowances

38,251

9,463

Others42,16646,850Total current liabilities

304,882

265,240

932

119

Net defined benefit liabilities

60,60060,503

Others

3,094

4,172

Total long-term liabilities

64,62864,795369,510330,036

54,961

54,961Long-term liabilities
Other allowances

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,01178,011Retained earnings

748,827724,075

Treasury stock, at cost

(11,821)(55,039)

Total shareholders' equity

869,977

802,008

13,024

13,772(34)

77

Foreign currency translation adjustments

4,366(2,041)

Accumulated remeasurements of defined benefit plans(6,585)(5,860)Total accumulated other comprehensive income (loss)

10,7705,947

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

Share subscription rights
Total net assets
Total liabilities and net assets

8

7,368

11,398888,117819,354

1,257,627

1,149,391

TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)Three months ended

Three months ended

June 30, 2018

June 30, 2019

Net sales

295,569

216,421

Cost of sales

173,085

126,537

Gross profit

122,483

89,884

Research and development expenses

26,131

25,692Others23,933

21,639Total selling, general and administrative expenses

50,06547,332

72,41842,552

346

434

1,891

1,043

Selling, general & administrative expenses

Operating income
Non-operating income
Dividend income
Foreign exchange gain
OthersTotal non-operating income

589

623

2,826

2,101

Non-operating expenses
Maintenance and operation costs of closed facilities

12-

Others19

62

Total non-operating expenses

32

62

75,212

44,591Gain on sales of fixed assets

00

Total unusual or infrequent profit

00Loss on disposal and sales of fixed assets

7

19

Total unusual or infrequent loss

7

19

Income before income taxes

75,20544,572

Income taxes

19,463

12,677

Net income

55,741

31,894

Net income attributable to owners of parent

55,741

31,894

Ordinary income
Unusual or infrequent profit

Unusual or infrequent loss

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TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)Three months ended

Three months ended

June 30, 2018

June 30, 201955,741

31,894

Net unrealized gains (losses) on investment securities(2,008)749

Net deferred gains (losses) on hedging instruments

(347)

98

Foreign currency translation adjustments

243(6,381)Remeasurements of defined benefit plans

519

715

2

(4)

(1,589)(4,822)54,152

27,071

54,152

27,071

Net income
Other comprehensive income (loss)

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

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TOKYO ELECTRON

Notes
Going concern: None
Significant changes in Shareholders' Equity: Yes
The Company executed the purchase of treasury stock based on the resolution of its Board of Directors dated May 27, 2019. Mainly due tothis purchase, the amount of treasury stock increased by 43,217 million yen for the first quarter of the current fiscal year and resulted in
55,039 million yen at the end of the first quarter of the current fiscal year.
Changes in significant subsidiaries during the period: None
Adoption of special accounting methods for preparation of quarterly financial statements: Yes
The company and part of its consolidated subsidiaries calculate tax expenses by reasonably estimating the annual effective tax rate on
income before income taxes after the application of tax effect accounting for the fiscal year, and applying this rate to income before income
taxes for the current quarter under review.
Changes in accounting policies, changes in accounting estimates and restatements: Yes
Changes in accounting policies
Part of consolidated overseas subsidiaries adopted IFRS 16 “Leases” from the beginning of this fiscal year, and recognize all leases as alessee in principle as assets and liabilities on the balance sheets. The effect of this change on the consolidated financial statements isimmaterial.

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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, wafer probers usedin the wafer testing process and other semiconductor production equipment. The SPE segment principally develops, manufactures,
sells such products and provide services on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture offlat panel displays. The FPD production equipment segment principally develops, manufactures, sells such products and provide serviceson them.
(ii) Net sales and profit or loss in reportable segments
Three months ended June 30, 2019 (April 1, 2019 to June 30, 2019)(Millions of yen)

Reportable Segments
Semiconductor
Production
Equipment

FPD Production
Equipment

Others *1

Total

Net sales

198,137

18,2294,436

220,803

Segment profit (loss)

46,4833,500

235

50,218Adjustments *2

Consolidated *3

Net sales(4,381)

216,421

Segment profit (loss)(5,646)44,572

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 (5,646) million yen mainly consists of research and development costs of (4,751) million
yen pertaining to the fundamental research and element research of TEL and other general and administrative costs that do notbelong to reportable segments.
*3. Segment profit (loss) is adjusted against income before income taxes in Consolidated Statements of Income.
(iii) Impairment losses on fixed assets and goodwill, etc. in reportable segments
Significant impairment losses related to fixed assets: None
Significant changes in goodwill amount: None
Significant gains on negative goodwill: None12