TOKYO ELECTRON

Summary of Consolidated Financial Results for the Second Quarter Ended
September 30, 2023 (Japanese GAAP)
Name of Listed Company: Tokyo Electron Limited
Security Code:

8035

URL:

https://www.tel.com

November 10, 2023

Stock Exchange Listing: Tokyo

Representative:

Toshiki Kawai, Representative Director, President & CEO

Contact:

Akifumi Matsumura, Vice President of Accounting Dept.
Telephone: +81-3-5561-7000

Scheduled start date of dividends payment: December 7, 2023
Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly earnings release conference: Yes (for investors and analysts)
Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Six months ended
September 30, 2022

September 30, 2023%

Net sales (Millions of yen)

1,182,897

26.9%
819,572(30.7)

Operating income (Millions of yen)

350,16527.5

178,578(49.0)

Ordinary income (Millions of yen)353,31927.2

181,282(48.7)Net income attributable to owners of parent (Millions of yen)

267,346

33.5

137,491(48.6)Net income per share of common stock (Yen):
Basic

571.76295.13

Diluted569.28294.12Comprehensive income:Six months ended September 30, 2023:

179,672 million yen, (30.9)%

Six months ended September 30, 2022:

259,972 million yen, 15.8%

Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. “Net income per share of common stock - Basic” andNote: “Net income per share of common stock - Diluted” are calculated on the assumption that stock split was implemented at theNote: beginning of the previous fiscal year.
(2) Consolidated Financial Position
As ofMarch 31, 2023

September 30, 2023

Total assets (Millions of yen)

2,311,594

2,191,741

Total net assets (Millions of yen)

1,599,524

1,530,272

68.7

69.2

Equity ratio (%)
Equity:1,516,125 million yen (as of September 30, 2023)
1,587,595 million yen (as of March 31, 2023)

2. Dividends
Year ended

Year ending

March 31, 2023

March 31, 2024

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

2Q-end dividends per share (Yen)857.00148.00--Year-end dividends per share (Yen)854.00

192.00 (Forecast)

Annual dividends per share (Yen)

1,711.00

340.00 (Forecast)

3Q-end dividends per share (Yen)

Notes: Revision to the dividends forecast most recently announced: None
Notes: 1. The Company implemented a 3-for-1 common stock split on April 1, 2023. For the fiscal year ended March 31, 2023, theNotes:

actual amount of dividends prior to the stock split are presented. For the fiscal year ending March 31, 2024 (forecast),

Notes:

the numbers after the stock split are presented. For reference, annual dividends for the fiscal year ending March 31,

Notes:

2024 (forecast) without considering the stock split are 1,020 yen.

Notes: 2. Year-end dividends of 854 yen for the year ended March 31, 2023 include 60th anniversary commemorative dividends ofNotes:

200 yen.

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TOKYO ELECTRON

3. Consolidated Financial Forecasts for the Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)
Note: Percentages for the year ending March 31, 2024 indicate changes from the previous fiscal year.
Year ending
March 31, 2024%
Net sales (Millions of yen)

1,730,000(21.7)

Operating income (Millions of yen)

401,000(35.1)

Ordinary income (Millions of yen)

404,000(35.4)Net income attributable to owners of parent (Millions of yen)

307,000(34.9)Net income per share (Yen)

661.14

Note: Revision to the financial forecasts most recently announced: Yes
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: None
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 September 30, 2023:

471,632,733 shares

As of March 31, 2023:

471,632,733 shares

2. Number of shares of treasury stock
As of September 30, 2023:

8,808,694 shares

As of March 31, 2023:

3,272,016 shares

3. Average number of shares outstanding (Cumulative quarterly period)
Six months ended September 30, 2023:

465,875,522 shares

Six months ended September 30, 2022:

467,586,934 shares

Notes: 1. The Company implemented a 3-for-1 common stock split on April 1, 2023. “Number of shares issued and outstanding”, “Number of shares
Notes:of treasury stock” and “Average number of shares outstanding” are calculated on the assumption that stock split was implemented at theNotes:

beginning of the previous fiscal year.

Notes: 2. The number of shares of treasury stock includes the Company’s shares held by "Executive compensation Board Incentive Plan (BIP) trust"
Notes:and "share-delivering Employee Stock Ownership Plan (ESOP) trust". (1,386,684 shares as of September 30, 2023, 1,502,637 shares as ofNotes:March 31, 2023)

Notes: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 (4) Description of Financial Estimates Information such as Consolidated Financial Forecasts" on page 4.
The Company plans to hold an online conference for investors and analysts on November 10, 2023.
Supplementary materials to be used 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
With respect to the global economy in the first half of the current fiscal year, surges in raw material and energy prices
are beginning to ease, while various goods prices have continued to rise when compared to the previous fiscal year.
The yen in response to policy interest rate hikes implemented in Europe and the United States continued to decline
in value.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, capital investment in semiconductor
production equipment entered a temporary adjustment phase following consecutive years of growth. However,considering the transition to a data society and efforts toward realizing a decarbonized society stemming from the
expansion of information and communication technology, the role of semiconductors in supporting electronic devices
and the importance of their technological innovation is increasing. Therefore, further growth is expected in thesemiconductor production equipment market in the medium- to long-term.
Consequently, throughout the first half of the current fiscal year, as demand for final products such as PCs andsmartphones declined, and inventories of semiconductor memory adjusted, semiconductor memory manufacturers
curtailed production and capital investments. Furthermore, although capital investment in semiconductors meant for
cutting-edge logic/foundry faced similar adjustments to those faced by memory, in light of the digitalization of society,capital investments in mature generations of semiconductors centered on automotive and industrial applications, andIOT, etc. continued their strong growth trend from the previous fiscal year.
As a result, the consolidated financial results (cumulative) for the first half of the current fiscal year were net sales of819,572 million yen (year-on-year decrease of 30.7%), operating income of 178,578 million yen (year-on-year
decrease of 49.0%), ordinary income of 181,282 million yen (year-on-year decrease of 48.7%), and net income
attributable to owners of parent of 137,491 million yen (year-on-year decrease of 48.6%).
From the first quarter of the current fiscal year, information by segment has been omitted, due to the change of thereportable segments to a single segment of "Semiconductor Production Equipment". For details, please refer to “Notes”
on page 11 for further information.

(2) Description of Financial Conditions
Current assets at the end of the second quarter of the current fiscal year were 1,552,743 million yen, a decrease of
188,216 million yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 120,455
million yen in cash and deposits, and a decrease of 97,172 million yen in notes and accounts receivable - trade, andcontract assets.
Property, plant and equipment increased by 41,406 million yen from the end of the previous fiscal year, to 300,494
million yen.
Intangible assets increased by 1,328 million yen from the end of the previous fiscal year, to 29,888 million yen.
Investments and other assets increased by 25,629 million yen from the end of the previous fiscal year, to 308,615
million yen.
As a result, total assets decreased by 119,852 million yen from the end of the previous fiscal year, to 2,191,741 million
yen.
Current liabilities decreased by 52,720 million yen from the end of the previous fiscal year, to 577,172 million yen. This
was largely due to a decrease of 24,160 million yen in trade notes and accounts payable, and a decrease of 23,639
million yen in income taxes payable.
Long-term liabilities increased by 2,120 million yen from the end of the previous fiscal year, to 84,295 million yen.
Net assets decreased by 69,252 million yen from the end of the previous fiscal year, to 1,530,272 million yen. This
was largely due to a decrease resulting from the payment of 133,754 million yen in year-end dividends for the previous
fiscal year, a decrease resulting from the purchase of treasury stock of 120,027 million yen, an increase of 137,491
million yen resulting from recording net income attributable to owners of parent, an increase of 23,806 million yen inforeign currency translation adjustments, and an increase of 19,157 million yen in net unrealized gains on investment
securities. As a result, the equity ratio was 69.2%.

3

TOKYO ELECTRON(3) Description of Cash Flows
Cash and cash equivalents at the end of the second quarter of the current fiscal year decreased by 120,578 million
yen compared to the end of the previous fiscal year, to 351,893 million yen. The combined balance including 10,751
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 362,644 million yen, a decrease of 110,455 million yen from the end of the previous
fiscal year. The overall situation regarding cash flows during the second quarter of the current fiscal year was as
described below.
Cash flows from operating activities were positive 200,622 million yen, a decrease of 62,768 million yen compared tothe same period of the previous fiscal year. The major positive factors were 181,136 million yen in income before
income taxes, a 106,472 million yen decrease in notes and accounts receivable – trade, and contract assets, and a
91,166 million yen decrease in prepaid consumption tax. The major negative factors were 85,346 million yen increase
in inventories, and a 71,971 million yen in payment of income taxes.
Cash flows from investing activities were negative 70,354 million yen compared to negative 34,210 million yen in thesame period of the previous fiscal year. This was largely due to the payment of 54,953 million yen for the purchase ofproperty, plant and equipment.
Cash flows from financing activities were negative 254,999 million yen compared to negative 121,269 million yen in
the same period of the previous fiscal year. This was largely due to the payment of 133,754 million yen in dividends,
and the payment of 120,027 million yen for the purchase of treasury stock.
(4) Description of Financial Estimates Information such as Consolidated Financial Forecasts
Net sales for the first half of the current fiscal year have exceeded previous projections and, in terms of profit, operating
income, ordinary income, and net income attributable to owners of parent, each exceeded projections.
Furthermore, based on the most recent trends in facilities investments by our customers and the most recent trends
in financial results, we would like to amend the consolidated financial forecasts for the full year announced on May 11,2023, as follows.

Consolidated Operating Results (Cumulative) for the First Half of the Year Ending March 31, 2024
Results for FY2024 1H(Billions of yen)Previous forecast(May 11, 2023)

Net Sales
819.5(30.7)%
Operating Income
178.5(49.0)%
Ordinary Income
181.2(48.7)%Net Income Attributable to Owners of Parent
137.4(48.6)%
Notes: Percentages indicate changes from the same period of the previous fiscal year.

790.0
161.0
162.0
120.0

Consolidated Financial Forecast for the Year Ending March 31, 2024
Revised forecast
Net Sales
1,730.0(21.7)%
Operating Income
401.0(35.1)%
Ordinary Income
404.0(35.4)%Net Income Attributable to Owners of Parent
307.0(34.9)%
Notes: Percentages indicate changes from the same period of the previous fiscal year.

4(Billions of yen)Previous forecast(May 11, 2023)
1,700.0
393.0
395.0
300.0

TOKYO ELECTRON

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.

5

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2023

September 30, 2023

ASSETS
Current assets
Cash and deposits

473,099352,643

Notes and accounts receivable - trade, and contract assets

464,889

367,7170

10,001

236,795

282,847

Securities
Merchandise and finished goods
Work in process

161,938

157,024

Raw materials and supplies

253,474

308,669

Others150,946

73,992

(184)

(152)

1,740,959

1,552,743

259,088

300,494

Others28,55929,888

Total intangible assets

28,55929,888284,326

310,016

Allowance for doubtful accounts
Total current assets
Long-term assets
Property, plant and equipment
Intangible assets

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

6(1,340)(1,401)

282,986

308,615570,634

638,998

2,311,594

2,191,741

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2023

September 30, 2023

LIABILITIESCurrent liabilities
Trade notes and accounts payable

116,317

92,157

Income taxes payable

71,17747,538Customer advances

289,169

310,492

Accrued warranty expenses

34,382

32,944

Accrued employees’ bonuses

43,337

24,960

Other allowances

3,605

734

Others71,904

68,345

Total current liabilities

629,893

577,172

Other allowances

3,189

3,070

Net defined benefit liabilities

60,36660,550

Others

18,61820,674Long-term liabilities

Total long-term liabilities
Total liabilities

82,17584,295712,069

661,468

NET ASSETS
Shareholders' equity
Common stock

54,961

54,961

Capital surplus

78,01178,011

1,322,203

1,324,214

Treasury stock, at cost

(22,033)(137,695)

Total shareholders' equity

1,433,141

1,319,490

107,452

126,610(46)

37

Foreign currency translation adjustments

43,091

66,898

Accumulated remeasurements of defined benefit plans

3,954

3,087

Total accumulated other comprehensive income (loss)

154,453

196,634

11,92914,147

1,599,524

1,530,272

2,311,594

2,191,741

Retained earnings

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

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TOKYO ELECTRON

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

Six months ended

September 30, 2022

September 30, 2023

1,182,897

819,572

Cost of sales

654,081467,531

Gross profit

528,816

352,040

Research and development expenses

91,313

94,678Others87,33778,784

Net sales

Selling, general & administrative expenses

Total selling, general and administrative expenses

178,651

173,462

350,165

178,578

Share of profit of associates accounted for using the equity method

1,212

1,549

Others

3,983

4,339

Total non-operating income

5,195

5,889

1,293

2,494

Operating income
Non-operating income

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

748

691

2,041

3,185

353,319

181,282

Unusual or infrequent profit
Gain on sales of long-term assets

2

10

Total unusual or infrequent profit

2

10

405

155

Unusual or infrequent loss
Loss on disposal and sales of long-term assets

405

155

Income before income taxes

Total unusual or infrequent loss

352,916

181,136

Income taxes

85,57043,644

Net income

267,346

137,491

Net income attributable to owners of parent

267,346

137,4918

TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Six months ended

Six months ended

September 30, 2022

September 30, 2023

267,346

137,491

Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities(28,307)

19,155

Foreign currency translation adjustments

20,80423,566

Remeasurements of defined benefit plans

(187)

(863)

Share of other comprehensive income of associates
accounted for using the equity method

316

322

(7,373)42,180259,972

179,672

259,972

179,672

Total other comprehensive income (loss)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

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TOKYO ELECTRON

Consolidated Statements of Cash Flows(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Income before income taxes

352,916

181,136

Depreciation and amortization

19,622

23,185

107

36

Increase (decrease) in accrued employees' bonuses(4,374)(19,156)

Increase (decrease) in accrued warranty expenses

8,864(1,761)

Decrease (increase) in notes and accounts receivable - trade,and contract assets(64,681)

106,472

Decrease (increase) in inventories(69,215)(85,346)

Increase (decrease) in trade notes and accounts payable(3,610)(28,588)

Decrease (increase) in prepaid consumption tax

44,856

91,166

Increase (decrease) in customer advances

84,84018,898Others1,514(16,227)

Subtotal

Cash flows from operating activities

Amortization of goodwill

370,840

269,814

Receipts from interest and dividends

1,854

2,779

Income taxes paid or refund (paid)(109,303)(71,971)

Net cash provided by operating activities

263,391

200,622

581

(83)

5,000

(10,000)(32,792)(54,953)

Payment for acquisition of intangible assets(5,175)(3,833)

Others(1,823)(1,483)

Net cash used in investing activities(34,210)(70,354)

Cash flows from investing activities
Decrease (increase) in time deposits
Decrease (increase) in short-term investments
Payment for purchase of property, plant and equipment

Cash flows from financing activities
Payment for purchase of treasury stock
Dividends paid
OthersNet cash used in financing activities(1,708)(120,027)(118,833)(133,754)(727)(1,217)(121,269)(254,999)

Effect of exchange rate changes on cash and cash equivalents

11,043

4,153

Net increase (decrease) in cash and cash equivalents

118,955(120,578)

Cash and cash equivalents at beginning of period

335,648

472,471

Cash and cash equivalents at end of period

454,603351,893

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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 11, 2023. Mainly due tothis purchase, the amount of treasury stock increased by 115,661 million yen for the six months ended September 30, 2023, and resulted in
137,695 million yen as of September 30, 2023.
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: None
Segment information
Six months ended September 30, 2023 (April 1, 2023 to September 30, 2023)
The description of this section has been omitted as TEL Group has a single segment of semiconductor production equipment (SPE).
Changes in reportable segments
While reportable segments of TEL Group were previously classified into SPE and flat panel display (FPD) production equipment, thosesegments have been changed into a single segment of SPE from the first quarter of the current fiscal year.
This change is due to the judgement that, based on facts that the impact from the FPD production equipment business has become
insignificant while SPE market has made steady growth and is expected to grow higher in future and TEL Group implemented a corporate
reorganization that combined the FPD production equipment business into the SPE business from April, 2023 for the purpose of efficient
resource utilization, disclosing them as a single segment of SPE will more appropriately reflect the management condition of TEL Group
from the viewpoint of the business development and the decision-making process for allocating management resources of TEL Group.
As a result of this change, the description of segment information for the six months ended September 30, 2023 has been omitted.

11