Revision of FY2010 Financial Estimatesand2010年3月期 事業環境と業績予想
Progress on Key Measures( FY2010: April 1, 2009 – March 31, 2010 )代表取締役社長
博司
HiroshiTakenaka,竹中President
October 30, 20092009年5月14日

25
CORP IR / October 30, 2009

Business Environment

26
CORP IR / October 30, 2009

As
Asdisclosed
disclosedat
atMay
May2009
2009Results
ResultsMeeting
Meeting

Business Environment in this FY2010► SPE capex
Tough environment for orders will continue but some new mobile-related
product plans will be realized and investment for advanced nodes willcommence- NAND: Robust smartphone–related demand, 3xnm scaling investment- DRAM: Scaling investment in 5x/4xnm by each major customer- Logic/Foundry: Capacity utilization increasing, investment in 45nm/32nm► FPD capex
Factory utilization rates rapidly recovering mainly due to robust demand forTVs in China► PV capex
Trend to postpone investment due to the effects of the financial crisis
but large growth potential in the medium/long term
27
CORP IR / October 30, 2009

Business Environment in this FY2010- Revised on Oct. 30 ► SPE capex
Investment climate is turning up due to higher capacity utilization
Expecting further investment in capacity increases- NAND: Solid smartphone–related demand, 3xnm scaling investment continues- DRAM: Major customers have started scaling investment in 4xnm
- Logic/Foundry: Capacity utilization increasing, investment in 65nm/40nm► FPD capex
New investment for new fab lines driven by steady demand for TVs in China► PV capex
Investment slowing down due to global economic downturn, but there are manyinquiries and we expect gradual recovery of capex

28
CORP IR / October 30, 2009

Quarterly SPE+FPD/PVE Orders
7-9/09SPE
79.6 (+63%)
FPD/PVE 14.2 (+896%)
Total:93.8 (+87%)

FPD/PVE order
SPE order(Billions of Yen)250(): change from 4-6/09

200
150
14.2

100
1.4

50

79.6
6.4 48.7

99

94-6/ 07-9/ 0

2/ 08

08

10-1

84-6/ 07-9/

81-3/ 0

2/ 07

07

10-1

74-6/ 07-9/

71-3/ 062/ 0610-1

64-6/ 07-9/ 061-3/ 057-9/ 02/ 05

54-6/ 010-1

51-3/ 042/ 0410-1

44-6/ 07-9/ 0

41-3/ 037-9/ 02/ 03

34-6/ 010-1

31-3/ 022/ 02
10-1

7-9/ 01
7-9/ 02/ 01
1-3/ 024-6/ 02

14-6/ 0

10-1

11-3/ 000
10-1
2/ 00

7-9/

1-3/ 020.4

0* Figures until 10-12/05 are non-consolidated, figures from Jan-Mar 2006 are consolidated.
* Main difference between consolidated and non-consolidated: Consolidated figures include post-sales orders at overseas
subsidiaries.

29
CORP IR / October 30, 2009

SPE Market Forecast- Japanese Equipment Sales ($M)

Growth (%, YoY)100

25,000

Forecast
20,000

59.7
36.1

17.2

36.9

50
47.4

-5.1
15,000

30.0

-2.9
4.1
-51.0

10,0000-57.0
-47.5

-50

5,000

-1000
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Source: SEAJ 2009.7

Expected
Expected toto exceed
exceed July
July forecast
forecast
30
CORP IR / October 30, 2009

Revision of FY2010 Financial Estimates( FY2010: April 1, 2009 – March 31, 2010 )31
CORP IR / October 30, 2009

FY2010 Highlights
 SPE: Sales forecast revised up due to strong rise inequipment demand for logic foundry and memory
customers, particularly etch systems
 FPD: Sales forecast revised up due to restart of investment

and accelerated deliveries PV:Delivering systems

 R&D: Adding 3B yen to original plan, to 57B yen
 Cost cuts of 30B yen in process as scheduled Loss expected to be smaller than initial forecast

32
CORP IR / October 30, 2009

Revised up FY2010 Financial Estimates(Billions of yen)

FY2010E (revised)
FY2009Net sales
SPEFPD/PVE
EC/CNOthers
Operating income
Ordinary income
Unusual orinfrequent gain/loss
EBIT
Net income
1.
2.
3.

1H
2H
Increase/
Increase/decrease*(actual)(revised) decrease*508.0
153.8+9.8
206.2 +32.2
325.3
82.1+5.1
126.9 +22.9
88.1
30.7+0.2
38.3 +8.8
94.2
40.7
+4.2
41.1 +0.6
0.3
0.2+0.2
0.0
14.7 (2.9) -21.6 (-14.0) +14.3 -13.4 (-6.5) +7.6

YoY
Full year
Increase/changedecrease*(revised)
360.0 +42.0 -29%
209.0 +280 -36%
69.0+9.0 -22%
81.8
+4.8 -13%
0.2+0.2 -48%
-35.0 (-9.7) +22.0-

20.5 (4.0) -19.2 (-12.5)-31.5 (-8.8)-10.9+15.7 -12.3 (-6.0)-7.0

9.6 (1.9) -26.2 (-17.1)
7.5 (1.5) -16.1 (-10.5)

-1.0

0.0

+14.7 -12.3 (-6.0)+9.8 -10.9 (-5.3)

+7.7
+7.7
+1.1

-7.0
-38.5 (-10.7)-27.0 (-7.5)

+23.5

--1.0

-

+22.5
+11.0

-

SPE: Semiconductor Production Equipment, FPD/PVE: Flat Panel Display and Photovoltaic Cell Production Equipment, EC/CN: Electronic Components and Computer Networks
Numbers shown in ( ): profit ratios
YoY changes and profit ratios are calculated using full amounts, before rounding.

* increase/decrease from the previous estimates announced on July 31.

Revised
Revised up
up forecast,forecast, due
due toto better
better
SPESPE businessbusiness environment
environment
CORP IR / October 30, 200933

Net Sales, Operating Income, Operating
Margin(Billions of Yen)

RevisedEstimate

1,000
851.9
723.8
635.7

500
16.7%

417.8

460.5

906.0

Oct 30673.6
May 14

529.6
10.1%

11.2%

63.9

75.7

16.9%

18.6% 508.0

143.9

168.4

4.2%
121.0

0.2%

0-18.3-4.4%

1.1

Jul 31300.0 318.0

360.0

2.9%
14.7

22.2

-63.0 -57.0 -35.0-9.7%

Net Sales

Operating incom e

Operating m argin-21.0%

-500
FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

-17.9%FY09

FY10(E)34
CORP IR / October 30, 2009

Progress on Key Measures for FY2010( FY2010: April 1, 2009 – March 31, 2010 )35
CORP IR / October 30, 2009

As
Asdisclosed
disclosedat
atMay
May2009
2009Results
ResultsMeeting
Meeting

Overview► The semiconductor and FPD markets will continue to expand in three
dimensions:• Regions:• Applications:• Performance:

Shift from developed countries to high population Asia,
emerging countries
Shift from mobile devices to medical, communications
and other social infrastructure
Faster devices with larger memory, lower energy
consumption► A production equipment industry that supports technological innovationof electronics will make this expansion a reality, and our industry willcontinue to grow with cyclical peaks and troughs
Over nearly half a century in the production equipment business, TEL has
built absolute trust with customers through its pre-eminent technology
development capability.
We will continue to leverage these comprehensive strengths to grow ourbusiness.
CORP IR / October 30, 200936

As
Asdisclosed
disclosedat
atMayMay2009
2009Results
ResultsMeeting
MeetingChanging SPE environment Process technology: Shrinkage; Shift to low power
consumption
 Customers: Accelerated oligopoly
 SPE market: Shift to Asia Equipment: Pursuit of higher productivity, environmentfriendly equipment
 Post sales: Shift to longer life cycles of equipment

Identifying market changes to enhance our position
37
CORP IR / October 30, 2009

As
Asdisclosed
disclosedat
atMayMay2009
2009Results
ResultsMeetingMeeting

Key Measures for the Current Fiscal Year1.

Cost cuts of 30 billion yen(to give cumulative 2 year total of 70 billion yen)−−−

2.

Maximize potential of existing business−3.

Actively strengthen existing business areas

Sustained investment in R&D to achieve growth−

4.

Further reduction in general expenses
Restrain capex
Effects from reduced outsources

Selective, active investment in high growth areas

Flexible response to market changes−−−

New framework for post-sales business
Strengthen PV businessGreater environmental awareness

Maintain a medium-term perspective while responding
to short-term issues
38
CORP IR / October 30, 2009

Status of FY2010 Cost-cut Program-40B yen
1H -17B yen
2H -13B yen
Fixedcost

FY08(2H: Increase in
R&D expenses)

FY09

FY10(E)

30B
30B yenyen cut
cut inin fixed
fixed costs
costs onon schedule
schedule
39
CORP IR / October 30, 2009

Re-organization of Sales & Marketing
BBusiness UnitRegion

RigeonusinessUnit

Integrated
IntegratedCustomer
Customer penetration
penetration withwith anan integrated
integrated team
team
40
CORP IR / October 30, 2009

Strengthen Technology & Development
related BaseIMEC (EU)IMEC
Litho,
R&D
Litho,
R&D

TTCA(USA)
TTCA(USA)
Logic
Logicdevelopment
development++BEOL
BEOL
TEKS
TEKS(Korea)(Korea)TTCT
TTCT(Taiwan):(Taiwan):Newly
Newlyopened
opened

TDC:
LPDC:
TDI:
TELAT:
TKL:
TEKS:
TTCA:
TTCT:

Technology Development Center
Leading-edge Process Development CenterTokyo Electron Technology Development InstituteTokyo Electron ＡＴ
Tokyo Electron Kyushu
Tokyo Electron Korea Solution
TEL Technology Center, America
TEL Technology Center, Taiwan

Japan
Japan
TDC,
TDC,TDI
TDI ::R&D
R&D
LPDC
:
Process
LPDC: Processdevelopment
development
TELAT,TELAT,TKL
TKL::ProductProductdevelopment
development

Development
Development withwith leading
leading edge
edge technology
technology
41
CORP IR / October 30, 2009

Optimizing Global Facilities
Japan￭ R&D, Manufacturing sites: Closure of Sagami, Saga,
Amagasaki plant, and integrated with others￭ FE site*: Consolidating from 14 sites to 8Overseas￭ Pursuing optimization matched to the businessenvironment
FE: Field Engineering

42
CORP IR / October 30, 2009

Challenge towards Further Growth
Existing business￭ Execute measures to realize No.1 position
New Business￭ Reorganize and reinforce our operation- Corporate Business Strategy Division(former SPE Business Strategy Division)

New Business Planning Dept.
(former Marketing Dept.)
43
CORP IR / October 30, 2009

Our Core Strength is to Provide
Technology Solutions
Sales
Sales

R&D
R&D

(Billion Yen)

Capex
Capex

906.0

508.0
360.0

66.0

60.9

54.0

57.0
22.7

18.1

16.0
10.0

FY08

FY09

FY10(E)

Revised

FY08

FY09

FY10(E)
Revised

FY08

FY09

FY10(E)
RevisedMaintain
Maintain higher
higher level
level ofof R&D
R&D
CORP IR / October 30, 200944

From Post Sales (PS) toField Solutions (FS)Overseas subsidiaries

China
ChinaEuropeEurope
Korea
Korea

U.S.A.
U.S.A.
TaiwanTaiwanTFE* PS
Field
FieldSolutions
Solutions

CTCT
ESES

TPS
TPS

SPS
SPSSD
SD
SPE Business Unit

ProvideProvide solutions
solutions forfor ourour 50,000
50,000 units
units inin operation
operation
45

TFE: Tokyo Electron FE
CORP IR / October 30, 2009

Strengthening PV Cell Production
Equipment Business
Joint development with SHARP

Alliance with Oerlikon Solar

82%
4,000

3,000

Geothermy
Geothermy
WindWindPVPV

25%

Biomass
Biomass• End-to-end thin-film silicon PV solutions 2,000• TEL: representative in Asia & Oceania

Hydro
Hydro

1,000

RenewableEnergy
EnergyRenewable• Plasma CVD system for thin-film silicon PV• TEL: joint development, manufacturing andsales（x107 MWh）

Thermal/Nuclear
Thermal/Nuclear

Independent development by TEL0

2010

2020

2030

2040

Source: European Renewable Council / TEL estimate

Establish
Establish optimal
optimal businessbusiness model
model fromfrom
mediummedium term
term standpoint
standpoint
CORP IR / October 30, 200946

Addressing Environmental Issues
Enhance energy efficiency ofTEL products
ReduceReduceCO
CO2 2emissions
emissionsby
byreducing
power
consumption,
reducing power consumption,
chemicalchemicalusage,
usage,etc.
etc.

Provide manufacturing
equipment for clean energy
Photovoltaic
Photovoltaiccell
cellproduction
production
equipment
equipment

Provide manufacturing
equipment for energy-saving
devices
SiC
SiCepitaxial
epitaxialequipment
equipmentfor
forpower
powerICIC
OLEDproduction
equipment
OLED production equipment

TEL plant & officeinitiatives for environment
Reducing
Reducingenergyenergyconsumption
consumptioninin
logistics
logisticsand
andproduction
production

ReduceReduce environmental
environmental burden
burden by
by half
half byby 2015
2015
47
CORP IR / October 30, 2009

Strengthen Financial and Business Position
Enhancing manufacturing capability• Enhance core technology and production technology• Further improvement of quality• Promote strategic corporate procurement

Human resource development• Cultivate personnel ability and build vibrant organization,
through “One grade up” training program

Realize
Realize dynamic
dynamic growth
growth withwith continuing
continuing measures
measures48CORP IR / October 30, 2009

Summary Revise up our original forecast and lower loss estimates,

due to better business environment and good progresson cost cuts program Optimizing our organization to achieve the next stage ofgrowth. Maintain higher level of investment intechnology development
 Continuous operation of human resource cultivation in

medium-to-long term standpoint

49
CORP IR / October 30, 2009

50
CORP IR / October 30, 2009