TOKYO ELECTRON

August 1, 2011

Consolidated Financial Review
for the First Quarter Ended June 30, 2011
Company name:
URL:
Telephone number:
Stock exchange listing:Tokyo Electron Limited

http://www.tel.com(03) 5561-7000
Tokyo Stock Exchange 1st Section (Code 8035)

Notes: 1. The accompanying financial statements have been prepared in accordance with accounting
principles and practices generally accepted in Japan.
2. Amounts are rounded down to the nearest million yen.

1. Financial highlights for the three months ended June 30, 2011
Three months ended
June 30, 2010
June 30, 2011
Net sales (Millions of yen)
144,889
153,117
Operating income (Millions of yen)
18,321
23,088
Ordinary income (Millions of yen)
19,06323,751
Net income (Millions of yen)
14,727
16,636
Net income per share (Yen)
82.27
92.91
Fully diluted net income per share (Yen)
82.15
92.76
Comprehensive income:Year ended 6/30/11: 16,772 million yen
Year ended 6/30/10: 9,975 million yen(1) Operating results (Cumulative)(2) Financial position

Total assets (Millions of yen)
Net assets (Millions of yen)
Equity ratio (%)
Equity: 575,762 million yen (as of June 30, 2011)
572,741 million yen (as of March 31, 2011)

As ofMarch 31, 2011
809,205
584,801
70.8

As of
June 30, 2011
797,368
587,874
72.2

Year ended
March 31, 2011
38.00
76.00
114.00Year ending
March 31, 2012
45.00 (Forecast)
22.00 (Forecast)
67.00 (Forecast)

2. Dividends

2Q-end dividend per share (Yen)
Year-end dividend per share (Yen)Annual dividend per share (Yen)
Note: Revision of dividends forecast : Yes

3. Earnings forecasts for the year ending March 31, 2012
Six months ending
September 30, 2011
Net sales (Millions of yen)
Operating income (Millions of yen)
Ordinary income (Millions of yen)
Net income (Millions of yen)
Net income per share (Yen)
Note: Revision of earnings forecast : Yes

335,000
35,00036,00023,000128.441

Year ending
March 31, 2012
640,000
50,00052,00034,000189.87

TOKYO ELECTRON
4. Others(1) Important changes in subsidiaries during the current period: None
New: -

Excluded: -(2) Adoption of special accounting method in preparing quartely financial statement: Yes(3) Changes in accounting policies, accounting estimation, and restatement
1. Changes in accounting policies along with changes in accounting standards: Yes
2. Other changes of accounting policies besides number 1 above: None
3. Changes in accounting estimates: None
4. Restatement: None
(4) Number of shares outstanding (common stock)
1. Number of shares issued (including treasury stock)
2. Number of shares of treasury stock
3. Average number of shares outstanding

As of March 31, 2011

As of June 30, 2011

180,610,911

180,610,911

1,554,231

1,543,571

178,999,952

179,065,796

Notification of the status of quarterly financial review procedures:This quarterly financial report is outside the jurisdiction of auditing procedures outlined in the Financial Instruments and Exchange Act
and remain incomplete at the time of announcing this report.
Explanations on the appropriate use of earnings forecast:
The performance forecast and estimate stated in this Financial Review are based on certain assumptions judged to be reasonable
at the present time in light of information currently available. Consequently, actual operating results may differ substantially.

2

Qualitative Information on Financial Results for the First Quarter(1) Qualitative Information on Consolidated Operating Results

During the first quarter of the current fiscal year, concerns about future developments persisted, but the global
economy overall showed a steady change. Strong economies continued in China, India, and other emerging
nations, however the momentum of economic growth has begun to slow. Meanwhile, the Japanese economy
has only recently started to recover from the effects of the Great East Japan Earthquake.

In the electronics industry, in which the Tokyo Electron group conducts its business, the information terminals
devices including smartphones remained strong, but the gap between supply and demand for semiconductors
widened, and inventory adjustments have begun.

Consequently, consolidated net sales for the first quarter were 153,117 million yen (up 5.7% compared to thesame period of the previous year). Consolidated operating income and ordinary income, respectively, were
23,088 million yen (up 26.0% compared to the same period of the previous year) and 23,751 million yen (up24.6% compared to the same period of the previous year). Net income for the first quarter was 16,636 million
yen (up 13.0% compared to the same period of the previous year).

The overview of each business segment is as described below.

(i) Semiconductor Production Equipment
Semiconductor makers continue to invest in miniaturization. Sales in the semiconductor production equipment
segment were generally brisk, but orders fell because of a softening market for DRAM and inventory
adjustments by semiconductor makers. As a result, net sales from external customers in this segment during
the first quarter were 120,836 million yen (up 17.1% compared to the same period of the previous year).

(ii) FPD/PV (Flat Panel Display/Photovoltaic Cell) Production Equipment
Demand for production equipment for small- and medium-size liquid crystal panels used in smartphones wasstrong, but demand for equipment used to manufacture large liquid crystal panels was weak. As a result, net
sales from external customers during the first quarter were 12,536 million yen (down 38.3% compared to thesame period of the previous year).

(iii) Electronic Components and Computer Networks
Sluggish demand for semiconductor products used in consumer electronics were attributed to declining
demand for flat-panel televisions and PCs, and the Great East Japan Earthquake. Sales of computer
network-related equipment, on the other hand, were strong. As a result, net sales from external customers inthis segment during the first quarter were 19,648 million yen (down 7.8% compared to the same period of the3

previous year).

(iv) Others
Net sales from external customers in this segment during the first quarter were 96 million yen (up 0.5%
compared to the same period of the previous year).

(For reference）（Millions of yen）

Consolidated Operating Results
FY2012
1Q
Net Sales
Semiconductor Production Equipment
Japan
U.S.
EuropeKorea
TaiwanChina
S.E.Asia
FPD/PV Production Equipment
Electronic Components & Computer Networks
OthersOperating Income
Ordinary Income
Net Income

153,117
120,836
20,94329,75613,99916,926
24,7059,115
5,390
12,536
19,64896
23,08823,751
16,636FY2011
Full Year668,722
511,331
87,940102,898
28,48287,858150,282
25,59328,27566,721
90,216453
97,870101,919
71,924

1Q

2Q

3Q

4Q

144,889
103,166
18,404
17,552
2,942
21,44534,014
4,649
4,158
20,306
21,321
95
18,321
19,063
14,727

173,510137,063
28,54722,474
7,028
30,12637,082
5,195
6,608
12,55323,754138
24,02026,04318,726

159,662
115,373
16,927
20,974
5,609
17,09235,383
7,960
11,424
21,992
22,222
73
25,815
26,667
18,667

190,658
155,728
24,06041,897
12,902
19,19443,802
7,787
6,084
11,867
22,917
145
29,71330,14519,802

Note: Offset elimination has been carried out on the dealing between segments.

Production and Order Performance（Millions of yen）

1. Production

Semiconductor Production Equipment
FPD/PV Production Equipment
Total
Note:

FY2012
1Q

FY2011
Full Year

1Q

2Q

3Q

4Q

127,147
14,115
141,262

507,161
74,016581,177

109,682
16,851
126,534

128,388
21,103
149,491

142,537
15,090157,628

126,553
20,970147,523

1. Amounts are based on sales prices.
2. The above amounts do not include consumption taxes.

（Millions of yen）

2. Orders Received

Semiconductor Production Equipment
FPD/PV Production Equipment
Electronic Components & Computer Networks
OthersTotal
Note:

FY2012
1Q

FY2011
Full Year

1Q

2Q

3Q

4Q

112,6928,920
22,50896
144,217567,971
75,43391,035453
734,893

133,205
11,453
24,95895
169,712150,278
22,43822,644
138
195,500

128,631
15,234
21,45573
165,395

155,856
26,307
21,977145
204,285

1. Offset elimination has been carried out on the dealing between segments.
2. The above amounts do not include consumption taxes.

4

（Millions of yen）
FY2011

3. Orders Backlog

Semiconductor Production Equipment
FPD/PV Production Equipment
Electronic Components & Computer Networks
OthersTotal
Note:

FY2012
1Q

1Q

2Q

3Q

4Q

220,798
61,875
17,235299,909202,342
47,924
17,193
267,460

215,557
57,80916,082
289,449

228,815
51,051
15,315295,182

228,942
65,491
14,375308,809

1. Offset elimination has been carried out on the dealing between segments.
2. The above amounts do not include consumption taxes.

(2) Qualitative Information on Consolidated Financial Conditions(i) Financial Conditions
Current assets at the end of the first quarter of the current fiscal year were 632,060 million yen, down 12,170
million yen compared to the end of the previous fiscal year.

Major contributing factors included 14,691 million yen in decrease in prepaid consumption tax, an 11,628
million yen decrease in trade notes and accounts receivable, and a 14,163 million yen increase in inventories.

Tangible fixed assets increased by 689 million yen from the end of the previous fiscal year, to 113,241 million
yen.
Intangible fixed assets decreased by 196 million yen from the end of the previous fiscal year, to 4,016 million
yen.
Investments and other assets decreased by 158 million yen compared to the end of the previous fiscal year, to
48,050 million yen.
As a result, total assets decreased by 11,836 million yen compared to the end of the previous fiscal year, to797,368 million yen.
Current liabilities were down 16,167 million yen compared to the end of the previous fiscal year, to 151,870
million yen. Major contributing factors included a decrease in income taxes payable of 21,201 million yen.
Long-term liabilities increased by 1,257 million yen from the end of the previous fiscal year, to 57,622 million
yen.
Net assets increased because a net income of 16,636 million yen was reported for the current first quarter andyear-end dividends for the previous fiscal year of 13,608 million yen were paid. As a result, net assets at theend of the current first quarter were 587,874 million yen. The equity ratio was 72.2%.

5

(ii) Cash Flow
Cash and cash equivalents at the end of the first quarter of the current fiscal year decreased by 54,865 million
yen compared to the end of the previous fiscal year, to 110,184 million yen. The combined balance of cash andcash equivalents plus 174,000 million yen in time deposits and certificates of deposit with deposit terms of overthree months (which are not included in cash and cash equivalents) was 284,184 million yen. The overallsituation regarding cash flow during the first quarter of the current fiscal year is as follows.

Cash flow from operating activities increased by 8,173 million yen compared to the same period of theprevious fiscal year, to 18,038 million yen. Major factors contributing the increase included cash flow income
from 23,423 million yen in income before income taxes, a 14,688 million yen decrease in prepaid consumption
tax, and an 11,412 million yen decrease in trade notes and accounts receivable. Major adverse factors
included 27,744 million yen in income taxes paid and a 15,650 million yen increase in inventories.

Cash flow from investing activities was 58,748 million yen compared to the 4,441 million yen in the same
period of the previous fiscal year, primarily the result of the 4,112 million yen payment for the purchase of
tangible fixed assets, and the 54,000 million yen increase in time deposits and certificates of deposit.

Cash flow from financing activities was 14,209 million yen as compared to 3,715 million yen in the same periodof the previous fiscal year, mainly as a result of payment of 13,608 million yen in dividends.

Consolidated Cash Flow (Summary)

Cash flow from operating activities
Income before income taxes
Depreciation and amortization
Decrease in trade notes and accounts receivable (increase)
Decrease in inventories (increase)
Increase in accounts payable (decrease)
OthersCash flow from investing activities
Decrease in time deposits (increase)
Others (purchase of fixed assets)
Cash flow from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents (decrease)
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Cash and cash equivalents and time deposits
terms of over three months at the end of period（Millions of yen）
Three month ended Three month ended
June 30, 2010
June 30, 2011
9,864
18,03819,25023,423
3,726
4,744(6,786)
11,412(14,490)(15,650)
2,756
686
5,407
(6,578)(4,441)(58,748)(54,000)(4,441)(4,748)(3,715)(14,209)
(925)
53
782
(54,865)
123,939
165,050
124,721110,184
244,7216

284,184

(3) Qualitative Information on Forecasts for Consolidated Financial Results

Semiconductor device prices fell because of the effects of inventory adjustments of smartphones, tablet PCs,
and other products, and semiconductor makers are rapidly adopting more cautious attitudes concerning
capital investment. As a result, although no changes were made to the financial forecasts for the first half of the
fiscal year, sales in the semiconductor production equipment segment in the second half are expected to fall
below the previous prediction, and the Company has revised its consolidated financial forecasts for the full
fiscal year announced on May 13, 2011.

Consolidated Forecast(Billions of yen, Y/Y change)
FY2012(E)
1st Half
335.0
5.2%
253.0
5.3%
38.0
15.6%
44.0
-2.4%
35.0
-17.3%
36.0-20.2%
23.0-31.2%Net Sales
Semiconductor Production Equipment
FPD/PV Production Equipment
Electronic Components & Computer Networks
Operating Income
Ordinary Income
Net Income

Full Year
640.0
-4.3%
470.0
-8.1%
75.0
12.4%
95.0
5.3%
50.0
-48.9%
52.0-49.0%
34.0-52.7%

Offset elimination has been carried out on the dealing between segments.

Note: The financial forecasts and estimates stated in this interim financial review are based on certain assumptions judged to bereasonable at the present time 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.
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 production equipment business. Consequently,
actual sales and profits may differ substantially from the projections stated in this financial review.

7

TOKYO ELECTRON

Consolidated Balance Sheet(Millions of yen)
As ofMarch 31, 2011

As ofJune 30, 2011ASSETS
Current assets
Cash and deposit

52,99250,184

Trade notes and accounts receivable

136,385

124,756

Securities

232,057

234,000

Merchandise and finished goods

111,918

124,366Work in process

43,246

43,574

Raw materials and supplies

13,76015,148Others55,024

41,101

Allowance for doubtful accounts(1,153)(1,071)

644,231

632,060

112,551

113,241

Others

4,212

4,016

Total intangible fixed assets

4,212

4,016

50,24050,075

Total current assets
Long-term assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets
OthersAllowance for doubtful accounts(2,031)(2,024)

Total investments and other assets

48,20948,050164,973

165,307809,205

797,368

Total long-term assets
Total assets

8

TOKYO ELECTRON(Millions of yen)
As ofMarch 31, 2011

As ofJune 30, 2011

LIABILITIESCurrent liabilities
Trade notes and accounts payable

53,612

54,167

Other allowance

19,401

12,757

Others95,02484,945

Total current liabilities

168,038

151,870

52,23052,883595

600

Others

3,538

4,138

Total long-term liabilities

56,36557,622

224,403

209,493

Common stock

54,961

54,961

Capital surplus

78,04578,035Retained earnings

457,658

460,686

Long-term liabilities
Accrued pension and severance costs
Other allowance

Total liabilities
NET ASSETS
Shareholders' equity

Treasury stock(10,484)(10,412)

Total shareholders' equity

580,180

583,270

2,807

3,142

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(12)

11

Translation adjustments(10,234)(10,662)

Total accumulated other comprehensive income(7,439)(7,508)Subscription rights to shares

1,499

1,516

Minority interests

10,56010,596

Total net assets

584,801

587,874

809,205

797,368

Total liabilities and net assets

9

TOKYO ELECTRON

Consolidated Statement of Income(Millions of yen)Three months ended
June 30, 2010

Three months ended
June 30, 2011

Net sales

144,889

153,117

Cost of sales

95,742

94,646Gross profit

49,14658,470Research and development expenses

14,836

18,176

Others15,98817,204

Total selling, general & administrative expenses

30,82535,381

18,321

23,088

Revenue from development grants

474

278

Others411

563

Total non-operating income

886

842

Foreign currency translation loss

54

63

Maintenance and operation cost of closed business bases

56

44

Others32

71

Total non-operating expenses

144

179

19,06323,751

Selling, general & administrative expenses

Operating income
Non-operating income

Non-operating expenses

Ordinary income
Unusual or infrequent profit
Gain on collection written-off claims-

Reversal of allowance for doubtful accounts

1,437

310

-

Others1241

Total unusual or infrequent profit

322

1,478

Loss from earthquake damage-

980

Loss on revaluation of investment securities

-

800

42

-

Unusual or infrequent loss

Effect of accounting standard adoption
for asset retirement obligations
Others93

26

Total unusual or infrequent loss

135

1,806

19,25023,423

Income before income taxes
Provision for income taxes and enterprise taxes

4,392

6,592

Income before minority interests

14,857

16,831

Minority interests
Net income

10

130

195

14,727

16,636

TOKYO ELECTRON

Consolidated Statement of Comprehensive Income(Millions of yen)

Income before minority interests

Three months ended
June 30, 2010

Three months ended
June 30, 2011

14,857

16,831(1,666)334

Other comprehensive income (loss)
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

221

44

Translation adjustments(3,437)(437)

Total other comprehensive income (loss)(4,882)

(58)

9,975

16,772

9,807

16,566

167

205

Comprehensive income(Breakdown)Comprehensive income of attributable to owners
Comprehensive income attributable to minority interests11Segment Information

TOKYO ELECTRON(i) Overview of reportable segments
The reportable segments by the company provide separate financial information pertaining to thevarious segments of the company, which is reviewed periodically by the management to evaluate
corporate performance as well as make decisions about the allocation of management resources.
The corporate structure consists of product and service segments based on business units (BUs), andthe reportable segments are as follows: Semiconductor Production Equipment, FPD/PV (Flat Panel
Display and Photovoltaic Cell) Production Equipment, and Electronic Components and Computer
Networks.
The Semiconductor Production Equipment segment consists of coaters/developers, plasma etchsystems, thermal processing systems, single wafer deposition systems, cleaning systems used inwafer processing, wafer probers used in the wafer testing process and other semiconductor
production equipment, and we are engaged in the development, manufacturing, sales and provision ofmaintenance services, etc. for such products.
The FPD/PV (Flat Panel Display and Photovoltaic Cell) Production Equipment segment consists ofcoaters/developers, plasma etch/ash system used in the manufacturing of flat panel displays, andplasma CVD systems used in the manufacturing of thin film silicon PV cells, and we are engaged in
the development, manufacturing, sales and provision of maintenance services, etc. for such products.
The Electronic Components and Computer Networks segment consists of semiconductor products
centering on integrated circuits (IC), other electronic components, computer networks and software,etc., and we are engaged in the design, development, procurement, and sales, etc. for such products.
(ii) Net sales and profit/loss in reportable segments
Three months ended June 30, 2011

( Millions of yen)
Reportable Segment

Semiconductor
Production
Equipment

FPD/PV
Production
Equipment

Electronic
Components &Computer
Networks

Net sales

120,836

12,53620,022

3,961

Segment income

28,330

859

735

605

Total Segment

Eliminations

Consolidated
Total

Net sales

157,356(4,239)153,117

Segment income

30,530(7,106)23,423

Others

Notes:
1. The "Others" segment includes all other businesses which are not included in the reported
business segments, such as the transportation of products, etc. of the Tokyo Electron Group
companies, equipment leasing and insurance, etc.
2. The eliminations of segment income amounting to 7,106 million yen includes corporate expenses
pertaining to the corporate account which are not allocated to any specific reportable segments.
The corporate account expenses are mainly R&D expenses of 6,032 million yen, pertaining tofundamental research and element research conducted by the company not related to any of thereportable segments.
3. Segment income is adjusted against quarterly net income before taxes in the quarterly
consolidated income statement.

12

TOKYO ELECTRON

Segment Information(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 income related to negative goodwill: None13