TOKYO ELECTRON

Summary of Consolidated Financial Results for the Year Ended
March 31, 2018 (Japanese GAAP)

April 25, 2018

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

Tokyo Electron Limited
8035
http://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: May 29, 2018
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, 2018 (April 1, 2017 to March 31, 2018)(1)  Consolidated Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2017

March 31, 2018%%

Net sales (Millions of yen)799,71920.4

1,130,728

41.4

Operating income (Millions of yen)

155,69733.3

281,172

80.6

Ordinary income (Millions of yen)

157,549

32.0

280,73778.2

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

115,20847.9

204,371

77.4

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

702.26

1,245.48

Diluted700.35

1,241.22

Return on equity (%)

19.1

29.0

Ordinary income to total assets (%)

18.0

25.9

Operating income to net sales (%)

19.5

24.9

Comprehensive income:Year ended March 31, 2018:

206,152 million yen, 71.8%

Year ended March 31, 2017:

119,998 million yen, 96.8%

Profit (loss) on equity method: Year ended March 31, 2018:

571 million yen

Year ended March 31, 2017:

342 million yen(2) Consolidated Financial Position
As ofMarch 31, 2017

March 31, 2018

Total assets (Millions of yen)

957,447

1,208,705

Total net assets (Millions of yen)

645,999

771,509

67.2

63.5

3,919.50

4,674.49

Equity ratio (%)
Net assets per share (Yen)
Equity:767,146 million yen (as of March 31, 2018)
643,094 million yen (as of March 31, 2017)(3) Consolidated Cash Flows
Year ended
March 31, 2017

March 31, 2018

Cash flows from operating activities

136,948

186,582

Cash flows from investing activities(28,893)(11,833)

Cash flows from financing activities(39,380)(82,549)

Cash and cash equivalents at end of period

164,366

257,877

1

TOKYO ELECTRON

2.   Dividends
Year ended
March 31, 2017

Year ending
March 31, 2019

March 31, 2018

(Forecast)

1Q-end dividends per share (Yen)

-

-

-

2Q-end dividends per share (Yen)

128.00277.00390.00---Year-end dividends per share (Yen)

224.00347.00433.00

Annual dividends per share (Yen)352.00624.00823.00Total dividends (Millions of yen)

57,752

102,398

Payout ratio (%)

50.1

50.1

Dividend on equity (%)

9.6

14.5

3Q-end dividends per share (Yen)

50.00

Note: The year-end dividends per share for the year ended March 31, 2018 shown above are forecast. Please refer to the press
Note: release "Announcement on Dividends Forecast Revision for the Fiscal Year Ended March 31, 2018" published today.
3.   Financial Forecasts for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ending
September 30, 2018

March 31, 2019%%

Net sales (Millions of yen)

690,000

33.5

1,400,000

23.8

Operating income (Millions of yen)

173,000

40.3

366,000

30.2

Ordinary income (Millions of yen)

173,000

40.6

366,000

30.4

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

128,000

41.2

270,000

32.1

Net income per share (Yen)779.95Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries associated with changes in scope of consolidation): Yes
New: 0 company (-) Excluded: 1 company (Tokyo Electron Tohoku Ltd.)
Please refer to "Notes" on page 16 for further information.
(2) 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
(3) Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)
As of March 31, 2018 :

165,210,911 shares

As of March 31, 2017 :

165,210,911 shares

2. Number of shares of treasury stock
As of March 31, 2018:

1,097,342 shares

As of March 31, 2017:

1,135,104 shares

3. Average number of shares outstanding
Year ended March 31, 2018:

164,090,594 sharesYear ended March 31, 2017:

164,054,693 shares

2

1,645.20

TOKYO ELECTRON(Reference) Non-consolidated Financial Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1)  Operating results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended
March 31, 2017

March 31, 2018%%

Net sales (Millions of yen)

751,09728.9

1,052,741

40.2

Operating income (Millions of yen)

60,55743.9

122,841

102.9

Ordinary income (Millions of yen)

61,895 (17.3)

128,549

107.7

Net income (Millions of yen)

46,682 (26.5)

91,376

95.7

Basic

284.56556.87

Diluted283.78554.96

Net income per share of common stock (Yen):(2) Financial position
As ofMarch 31, 2017

March 31, 2018

Total assets (Millions of yen)

768,651

994,055

Total net assets (Millions of yen)

340,518

357,928

Equity ratio (%)
Net assets per share (Yen)
Equity:

44.0

35.6

2,059.40

2,154.40

353,565 million yen (as of March 31, 2018)337,898 million yen (as of March 31, 2017)* Status of implementation of audit proceduresThis Summary of Consolidated Financial Results is outside the scope of the 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. Operating Results (3) Future Forecast" on page 7.
The Company plans to hold an earnings release conference for investors and analysts on April 25, 2018.
Supplementary materials to be handed out at the conference will be posted simultaneously on the Company's website.

3ファイル名TOKYO ELECTRON

1. Operating Results(1) Overview of Operating Results(i) Business Environment during the Fiscal Year Ended March 31, 2018
For the fiscal year under review, the global economy remained stable, with economic recovery progressing steadily in the U.S. andEurope, and solid economy in the Asian region, as well as in China.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, demand for memory increased dramatically as
manufacturers continued to step up investments in memory used in data centers amid the increase in high volume datatransmission, such as video streaming by every kind of cloud services. In addition, the semiconductor and electronic components
market was buoyant against the background of robust demand for semiconductors in products such as increased demand for uses
in automobiles and industrial equipment.

(ii) Overview of Profit and Loss during the Fiscal Year Ended March 31, 2018
In this environment, the consolidated business results for the fiscal year under review are as follows.
Net sales for the fiscal year were 1,130,728 million yen (year-on-year growth of 41.4%). Domestic net sales increased 47.1% fromthe previous year to 148,760 million yen, while overseas net sales increased 40.6% to 981,967 million yen to account for 86.8% of
net sales.
Cost of sales increased 37.3% to 655,695 million yen and gross profit increased 47.4% to 475,032 million yen. As a result, the grossprofit ratio expanded by 1.7 points to 42.0%.
Selling, general and administrative (SG&A) expenses increased 16.4% to 193,860 million yen, while the ratio to consolidated net
sales declined 3.7 points to 17.1%.
As a result, operating income increased 80.6% to 281,172 million yen and operating profit ratio increased 5.4 points to 24.9%. After
netting of non-operating income of 2,758 million yen and non-operating expenses of 3,193 million yen, ordinary income increased
78.2% to 280,737 million yen.
Unusual or infrequent net loss totaled 5,495 million yen (compared to a loss of 8,433 million yen in the previous fiscal year) mainly
due to the transfer of a part of the defined benefit plan to a defined contribution plan, effective April 1, 2018.
Income before income taxes was 275,242 million yen (year-on-year growth of 84.6%) and net income attributable to owners ofparent was 204,371 million yen (year-on-year growth of 77.4%).
As a result, net income per share was 1,245.48 yen, compared to net income per share of 702.26 yen in the previous fiscal year.

4ファイル名TOKYO ELECTRON(iii) Overview of Operations by Business Segment during the Fiscal Year Ended March 31, 2018
The overview of each business segment is as described below.

Semiconductor Production Equipment
DRAM memory manufacturer’s capital investments expanded in response to the favorable DRAM supply-demand conditions driven
by increased demand for servers used in data centers. Investment in 3D NAND flash memory to boost production capacity rose as
well because of the increase in installations of SSDs (solid state drives) in servers. In addition, investments in logic semiconductorused in the development of advanced technology also expanded in response to growth in demand for servers. As a result, demand
for semiconductor production equipment was strong. Consequently, the net sales to external customers in this segment for the fiscal
year under review were 1,055,234 million yen, and increased 40.7% compared to the previous fiscal year over the growth of theWafer Fab Equipment market.

Flat Panel Display (FPD) Production Equipment
Together with increased capital investment in large-sized LCD panels used for televisions in China, capital investment also
continued for small to medium-sized LCD panels used in mobile devices, and the FPD production equipment market remained
strong. As a result, net sales to external customers in this segment for the fiscal year under review were 75,068 million yen (year-onyear growth of 52.0%).

In this segment, the company also introduced the dry etching equipment “BetelexTM 1800 PICP” for use in high-definition flat panel
displays for the fiscal year under review.

Other
Net sales to external customers in this segment for the fiscal year under review totaled 425 million yen (year-on-year decrease of
3.1%).

(For reference）
Consolidated Operating Results（Millions of yen）
Year ended March 31, 2018Year ended
March 31, 2017
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

1Q

2Q

First
Half

3Q

4Q

SecondHalf

799,719

236,396

280,580

516,976

257,773355,977

613,751 1,130,728

749,893
91,203
101,559
59,929137,788
225,91090,66942,832
49,387438
155,697
157,549
115,208

221,969
26,77624,09725,382
68,37545,89726,757
4,683
14,323104
54,79055,14941,252

265,773
38,46832,077
26,931
101,790
36,646
23,073
6,786
14,701
104
68,527
67,91749,415

487,743
65,24456,17452,314
170,165
82,54349,83011,46929,024
208
123,318
123,066
90,668241,41135,112
29,121
19,621
79,47942,15522,64813,271
16,26497
58,09257,36040,715

326,079
45,15033,94625,005
122,301
44,364
31,842
23,46829,779118
99,761
100,31172,986567,490 1,055,234
80,263 145,507
63,068 119,243
44,626
96,940201,780 371,946
86,519 169,063
54,491 104,322
36,74048,21046,04475,068216
425
157,854 281,172
157,671 280,737
113,702 204,371

Note: Intersegment sales or transfers are eliminated.

5

Full Yearファイル名TOKYO ELECTRON(2) Qualitative Information on Consolidated Financial Conditions(i) Financial Conditions
Current assets at the end of the fiscal year totaled 997,102 million yen, an increase of 221,164 million yen when compared to theend of the previous fiscal year. This was mainly attributable to an increase of 107,814 million yen in inventories, an increase of
42,000 million yen in short-term investments included in securities, an increase of 25,712 million yen in trade notes and accounts
receivable, and an increase in cash and deposit of 16,511 million yen.
Tangible fixed assets increased by 25,511 million yen from the end of the previous fiscal year, to 125,952 million yen.
Intangible fixed assets increased by 480 million yen from the end of the previous fiscal year, to 15,882 million yen.
Investments and other assets increased by 4,101 million yen from the end of the previous fiscal year, to 69,768 million yen.
As a result, total assets increased by 251,258 million yen from the end of the previous fiscal year, to 1,208,705 million yen.
Current liabilities increased by 120,682 million yen when compared to the end of the previous fiscal year, to 368,452 million yen.
This was largely due to a 34,977 million yen increase in income taxes payable, a 32,232 million yen increase in customer advances,a 29,390 million yen increase in trade notes and accounts payable, and a 12,613 million yen increase in accrued employees’
bonuses.
Long-term liabilities increased by 5,065 million yen when compared to the end of the previous fiscal year, to 68,742 million yen.
Net assets increased by 125,509 million yen when compared to the end of the previous fiscal year, to 771,509 million yen.
Contributing factors were a 204,371 million yen increase in net income attributable to owners of parent and a decrease resulting
from the payment of 82,203 million yen in year-end dividends for the previous fiscal year and interim dividends for the current fiscal
year. As a result, the equity ratio was 63.5%.

(ii) Cash Flows
Cash and cash equivalents at the end of the current fiscal year increased by 93,511 million yen compared to the end of the previous
fiscal year, to 257,877 million yen. The combined balance including time deposits and short-term investments with maturities of atleast three months that are not included in cash and cash equivalents was 373,877 million yen, an increase of 58,511 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 a positive 186,582 million yen, an increase of 49,633 million yen compared to the same
period of the previous fiscal year. The major positive factors were 275,242 million yen in net income before income taxes, a 31,684
million yen increase in customer advances, a 28,535 million yen increase in trade notes and accounts payable, and 20,619 million
yen in depreciation and amortization. The major negative factors were a 109,846 million yen increase in inventories, 49,771 million
yen in income taxes paid, and a 25,971 million yen increase in trade notes and accounts receivable.
Cash flows from investing activities were a negative 11,833 million yen compared to a negative 28,893 million yen in the same
period of the previous fiscal year. These were largely due to the payment of 41,750 million yen for the purchase of fixed assets andan inflow of 35,000 million yen from a decrease in short-term investments.
Cash flows from financing activities were a negative 82,549 million yen compared to a negative 39,380 million yen in the same
period of the previous fiscal year. This was largely due to the payment of 82,203 million yen in dividends.

6

ファイル名TOKYO ELECTRON(3) Future Forecast
In semiconductor production equipment, continued strength in capital investment is expected in light of the continuing buoyant
demand for memory and the expansion of applications for semiconductors. In FPD production equipment, we expect robust demandwith capital investment continuing in large-sized LCD panel displays. Based on this business environment, financial forecasts for the
next fiscal year (the year ending March 31, 2019) are set forth below. Regarding the impact on the consolidated financial results of
the ownership transfer of its consolidated subsidiary TEL NEXX, Inc. that was announced on April 4, 2018, TEL expects that theeffect will be immaterial.

Consolidated Forecast(Billions of yen, Y/Y change)

Year ending March 31, 2019

Interim

Net Sales

690.0
634.0
56.0
173.0
173.0
128.0

Semiconductor Production Equipment
FPD Production Equipment
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent

Full Year
33.5%
30.0%
92.9%
40.3%
40.6%
41.2%

1,400.0
1,288.0
112.0
366.0
366.0
270.0

23.8%
22.1%
49.2%
30.2%
30.4%
32.1%

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 the Company in light of information currently available concerning economic conditions in Japan and overseas, fluctuations inforeign 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 andprofits may differ substantially from the projections stated in this announcement.

(4) 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 to shareholders byconcentrating 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, 2018) is scheduled to be 347 yen per share. The
dividend for the full year will be 624 yen per share, which includes the interim dividend of 277 yen per share.

7ファイル名TOKYO ELECTRON

Dividends are forecasted for the next fiscal year (the year ending March 31, 2019) to be 823 yen per share for the entire year
which consists of an interim dividend of 390 yen and year-end dividend of 433 yen, in accordance with the above consolidated
forecast for net income attributable to owners of parent for the next fiscal year pursuant to the stated dividend policy.

Current fiscal year
(ended March 31,
2018)
Next fiscal year
(ending March 31,
2019)

2Q-endDividend per share
Year-end

Total

277 yen

347 yen

624 yen390 yen

433 yen

823 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 acceptedin Japan. In regard to the application of IFRS, we will pay close attention to domestic and international implementation adoption
trends and respond accordingly.

8

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2017

March 31, 2018ASSETS
Current assets
Cash and deposit

70,86687,377

Trade notes and accounts receivable

133,858

159,570

Securities

244,500

286,500

Merchandise and finished goods

152,629

220,497

Work in process

51,11275,504

Raw materials and supplies

32,51448,069Deferred income taxes

36,89250,505

Others53,628

69,137

Allowance for doubtful accounts
Total current assets

(63)

(59)

775,938

997,102145,901

159,474(100,003)(103,229)

Long-term assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures , net

45,89856,245102,144

109,064

Accumulated depreciation(83,804)(84,918)

Machinery and carriers , net

Machinery and carriers

18,34024,145

Land

24,85528,030

Others35,92540,928(24,577)(23,397)

Accumulated depreciation
Others, net

11,347

17,530100,441

125,952

Others15,401

15,882

Total intangible fixed assets

15,401

15,882

Investment securities

24,11933,128Deferred income taxes

19,128

17,846

Net asset for defined benefits

4,818

-

Others

19,416

20,215

Allowance for doubtful accounts(1,816)(1,422)

Total investments and other assets

65,666

69,768

Total tangible fixed assets
Intangible fixed assets

Investments and other assets

Total long-term assets
Total assets

9

181,508

211,603

957,447

1,208,705

TOKYO ELECTRON

Consolidated Balance Sheets(Millions of yen)
As of

As of

March 31, 2017

March 31, 2018

LIABILITIESCurrent liabilities
Trade notes and accounts payable

79,217

108,607

Income taxes payable

31,06966,046

Accrued employees’ bonuses

21,853

34,467

Customer advances

67,976100,208

Others47,65359,122

Total current liabilities

247,770

368,452

55,82559,309Long-term liabilities
Net liability for defined benefits
Others

7,851

9,433

Total long-term liabilities

63,677

68,742

311,447

437,195

54,961

54,961

Total liabilities
NET ASSETS
Shareholders' equity
Common stock
Capital surplus

78,02378,011Retained earnings

503,325625,390

Treasury stock, at cost

(7,766)(7,518)

Total shareholders' equity

628,543

750,843

10,78817,13459

278

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

5,789

5,507

Accumulated remeasurements of defined benefit plans(2,086)(6,618)

Total accumulated other comprehensive income (loss)

14,551

16,302

Share subscription rights

2,620

4,363

Non-controlling interests

284-

645,999

771,509957,447

1,208,705

Total net assets
Total liabilities and net assets

10

TOKYO ELECTRON

Consolidated Statements of Income(Millions of yen)
Year ended

Year ended

March 31, 2017

March 31, 2018

Net sales

799,719

1,130,728

Cost of sales

477,427

655,695

Gross profit

322,291

475,032

Salaries and allowances

23,72424,079Research and development expenses

83,80097,103

Selling, general & administrative expenses

Others

59,06972,677

Total selling, general and administrative expenses

166,594

193,860

155,697

281,172

Interest income

722

533

Dividend income

310

325

Share of profit of associates accounted for using the equity method

342

571

Operating income
Non-operating income

Dividend income of insurance

300

334

Others1,255

992

Total non-operating income

2,931

2,758

Foreign exchange loss

791

2,897

Others287295

Non-operating expenses

Total non-operating expenses
Ordinary income

1,079

3,193

157,549

280,737

55

77

Unusual or infrequent profit
Gain on sales of fixed assets
Gain on sales of investment securities

6-

Total unusual or infrequent profit

61

77

Unusual or infrequent loss
Loss on impairment of fixed assets, goodwill and other assets
Loss on disaster
Loss on revision of retirement benefit plan
Others

362

925

7,521

-

-

3,154

610

1,492

8,494

5,572

Income before income taxes

149,116

275,242

Provision for income taxes and enterprise taxes

40,63383,434

Deferred income taxes(6,765)(12,591)

Total income taxes

33,867

70,842

Net income

115,248

204,39939

28

115,208

204,371

Total unusual or infrequent loss

Net income attributable to non-controlling interests
Net income attributable to owners of parent

11

TOKYO ELECTRON

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income

Year ended

Year ended

March 31, 2017

March 31, 2018

115,248

204,399

2,875

6,337

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

10

198

Foreign currency translation adjustments

(933)

(242)

Remeasurements of defined benefit plans

2,682(4,494)

114

(46)

4,750

1,752

119,998

206,152

119,942

206,12256

29

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
Comprehensive income attributable to non-controlling interests

12

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2017

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

Retained earnings

78,023

Total shareholders'equityTreasury stock

427,618(8,050)552,551

Changes of items during
the period

Cash dividends(39,371)(39,371)

Net income attributableto owners of parent

115,208

115,208

Repurchase of treasury
stock
Disposal of treasury
stock

(6)

(6)

(130)

290

159

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

75,707283

75,991

Balance at end of period

54,961

78,023503,325(7,766)

628,543

Accumulated other comprehensive income

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

7,902

50

Total accumulated
Accumulated
remeasurements of other comprehensive
income (loss)
defined benefit plans

Foreign currencytranslation
adjustments

6,742(4,877)

9,817

Share subscription
rights1,641

Non-controllinginterests

228

Total net assets

564,239

Changes of items during
the period

Cash dividends(39,371)

Net income attributableto owners of parent

115,208

Repurchase of treasury
stock

(6)

Disposal of treasury
stock

159

Net changes except forshareholders' equity

2,886

9

(953)

2,791

4,733

979

56

5,769

Total changes of items
during the period

2,886

9

(953)

2,791

4,733

979

56

81,760

Balance at end of period

10,78859

5,789(2,086)

14,5512,620

284

645,999

13

TOKYO ELECTRON

Consolidated Statements of Changes in Net Assets
Year ended March 31, 2018

(Millions of yen)
Shareholders' equity

Common stock

Balance at beginningof period

54,961

Capital surplus

78,023Retained earnings

Treasury stock

503,325(7,766)

Total shareholders'equity628,543

Changes of items during
the period

Cash dividends(82,203)(82,203)

Net income attributableto owners of parent

204,371

204,371

Repurchase of treasury
stock
Disposal of treasury
stock

(102)

Change in equity of parent
arising from transactions with
non-controlling shareholders

(16)

(16)

264

161

(12)

(12)

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

Balance at end of period

54,961(12)

122,064247

122,300

78,011

625,390(7,518)750,843

Accumulated other comprehensive income

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

10,78859

Total accumulated
Accumulated
remeasurements of other comprehensive
income (loss)
defined benefit plans

Foreign currencytranslation
adjustments

5,789(2,086)

14,551

Share subscription
rights2,620

Non-controllinginterests

284

Total net assets

645,999

Changes of items during
the period

Cash dividends(82,203)

Net income attributableto owners of parent

204,371

Repurchase of treasury
stock

(16)

Disposal of treasury
stock

161

Change in equity of parent
arising from transactions with
non-controlling shareholders(12)

Net changes except forshareholders' equity

6,345

219

(281)

(4,531)

1,751

1,742

(284)

3,209

Total changes of items
during the period

6,345

219

(281)

(4,531)

1,751

1,742

(284)

125,509

Balance at end of period

17,134278

5,507(6,618)16,302

4,363-

771,509

14

TOKYO ELECTRON

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

Year ended

March 31, 2017

March 31, 2018

Cash flows from operating activities
Income before income taxes

149,116

275,242

Depreciation and amortization

17,872

20,619362

925

Loss on impairment
Amortization of goodwill

631

600

Increase (decrease) in accrued employees' bonuses

10,112

12,710

Increase (decrease) in accrued directors' bonuses

623

2,573

Increase (decrease) in accrued warranty expenses

(220)

2,769

Interest and dividend revenue(1,032)(859)

Decrease (increase) in trade notes and accounts receivable(17,411)(25,971)

Decrease (increase) in inventories(44,102)(109,846)

Increase (decrease) in trade notes and accounts payable

24,05328,535Decrease (increase) in prepaid consumption tax(12,350)(13,896)

Increase (decrease) in accrued consumption tax

359

1,297

Increase (decrease) in customer advances

34,444

31,684

Others

5,843

8,851

Subtotal

168,304

235,238

Receipts from interest and dividends

1,266

1,115

Income taxes paid or refund (paid)(32,622)(49,771)

Net cash provided by operating activities

136,948

186,582

Payment into time deposits(25,000)-

Proceeds from time deposits

50,034-

Cash flows from investing activities

Payment for purchase of short-term investments(177,200)(131,000)

Proceeds from redemption of short-term investments

142,198

166,000

Payment for purchase of fixed assets(17,557)(41,750)

Payment for acquisition of intangible assets(1,116)(4,431)

(252)

(651)

(28,893)(11,833)

OthersNet cash provided by (used in) investing activities
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
Net increase (decrease) in cash and cash equivalents

(6)

(16)

(39,371)(82,203)

(2)

(329)

(39,380)(82,549)

53

1,312

68,72893,511

Cash and cash equivalents at beginning of period

95,638164,366

Cash and cash equivalents at end of period

164,366

257,877

15

TOKYO ELECTRON

Notes
Going concern: None

Changes in significant subsidiaries during the period: Yes
The absorption-type merger of Tokyo Electron Yamanashi Ltd. and Tokyo Electron Tohoku Ltd. was performed, effective July 1, 2017 with
Tokyo Electron Yamanashi Ltd. as the surviving company and Tokyo Electron Tohoku Ltd. as the absorbed company, and the name of thesurviving company following the merger was changed to Tokyo Electron Technology Solutions Ltd.

Changes in accounting policies, changes in accounting estimates and restatements: None

Notes on Consolidated Statements of Income
Loss on impairment
Tokyo Electron (TEL) Group groups its business assets by the lowest level for which cash flows are largely independent of cash flows
from other assets. During the current fiscal year ended March 31, 2018, the impairment loss was recognized for the following asset group.
Loss on impairment of goodwill for consolidated subsidiary TEL NEXX, Inc.

Location

Purpose of use

Asset Type

Loss on impairment(Millions of yen)

Billerica, Massachusetts,
U. S. A.

Business assets

Goodwill

925

Regarding the goodwill associated with the acquisition of the consolidated subsidiary TEL NEXX, Inc., in the semiconductor
production equipment (SPE) business, the impairment loss was recognized as an unusual or infrequent loss, as a result of
performing an impairment test due to TEL NEXX, Inc.'s reconsideration of its business plan. The goodwill amount was decreasedby the difference between the book value and the recoverable amount.
The recoverable amount was measured as value in use, and was calculated by discounting future cash flows at a discount rate of 14.0%.
Loss on revision of retirement benefit plan
Effective April 1, 2018, TEL and certain consolidated subsidiaries converted a portion of their defined benefit plan to defined contribution
plan. The loss accompanying this change was recognized as an unusual or infrequent loss in accordance with the “Accounting
Procedures for Conversion between Different Retirement Benefit Schemes” (Corporate Accounting Standards Implementation Guidelines
No. 1) and the “Practical Treatment of Accounting Procedures for Conversion between Different Retirement Benefit Schemes”(Practical Issues Task Force No. 2).

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, thermal processing systems, single wafer deposition systems,
cleaning systems, wafer probers used in the wafer testing process and other semiconductor production equipment. The SPE segmentprincipally 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) Means to measure net sales, profit or loss, assets and other items 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.
Shared assets are not allocated to each reportable segment, but the associated costs are allocated based on reasonable standards.

(iii) Net sales, profit or loss, assets and other items in reportable segments
As of and for the year ended March 31, 2018

(Millions of yen)

Reportable Segments
Eliminations
and Corporate Consolidated *3*2

Semiconductor
Production
Equipment

FPD Production
Equipment

1,055,234

75,068425

1,130,728-

1,130,728--

19,46919,469(19,469)-

1,055,234

75,06819,894

1,150,197(19,469)

1,130,728

Segment profit (loss)

314,602

13,299(57)

327,844(52,601)

275,242

Segment assets

494,964

43,9633,014

541,943666,762

1,208,705

11,402701

81

12,1858,434

20,619Amortization of goodwill

600

-

-

600

-

600

Loss on impairment

925

-

-

925

-

925

16,392935

247

17,57533,722

51,297

Others *1

Total

Sales
Sales to external customers
Intersegment sales or transfers
Net sales

Other items
Depreciation and amortization

Increase in the amount of tangible
and intangible fixed assets

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. "Eliminations and Corporate" segment loss totaling 52,601 million yen includes corporate expenses not allocated to any
reportable segments. The corporate expenses consist of research and development costs of 22,263 million yen, pertaining to
the fundamental research and element research of TEL and the loss on revision of retirement benefit plan of 3,154 million yen.

17

TOKYO ELECTRONb) The main elements included in "Eliminations and Corporate" of segment assets worth 666,762 million yen are cash
and deposit, securities, and buildings and structures which are not allocated to each reportable segment.
c) The main elements included in "Eliminations and Corporate" of tangible and intangible fixed assets worth 33,722
million yen are the investments in buildings and structures which are not allocated to each reportable segment.
*3. Segment profit is adjusted against net income before taxes in Consolidated Statements of Income.

(iv) Impairment loss on fixed assets in reportable segments
Refer to (iii) Net sales, profit or loss, assets and other items in reportable segments.

(v) Amortization and balance of goodwill in reportable segments
As of and for the year ended March 31, 2018

(Millions of yen)
Semiconductor
Production Equipment

Amortization
Balance at end of the period

FPD Production
Equipment

Total Reportable
Segment

600

-

600

1,699

-

1,699

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

18

TOKYO ELECTRONPer share information
Year ended
March 31, 2018
Net assets per share (Yen)

4,674.49

Net income per share (Yen)

1,245.48

Fully diluted net income per share (Yen)

1,241.22

Note: 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)

204,371

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)

204,371

The average number of common stock (Thousands of share)

164,090

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)

562[Share subscription rights (Thousands of share)][562]

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

Significant subsequent event
None

19-