TOKYO ELECTRON ANNUAL REPORT 2014

PAGE4CONTENTSCONTENTS

Financial Highlights

Top MessageTalking about
Tokyo Electron

To Our Stakeholders

Interview withwith thethe CEOCEOInterview

Business Overview

Review of Operations
and Business Outlook

Corporate GovernanceCorporate Citizenship

To Our Stakeholders

Tokyo Electron celebrated the 50th anniversary of its

lacks future potential, delay in establishing businesses

founding on November 11, 2013. I’d like to oncein the advanced packaging field, and the consolidation

again offer my heartfelt gratitude to everyone whoof development sites. We take full responsibility forhas done business with and supported us over thethese results. The entire management is committed toyears, and add a personal thanks to all the employ-doing our utmost going forward, and we kindly ask forees who have worked by our side as well as those

your understanding.

who led the way before.

In fiscal 2014, we also decided to reduce ourI regret to say that, in fiscal 2014, the year we

stake in Tokyo Electron Device, a subsidiary whichmarked this milestone, we posted a net loss of ¥19.4

operates the electronic components and computerbillion. In 2013, the business environment for semicon-

networks business, solidifying our strategy of con-ductor production equipment (SPE) and flat panel dis-

centrating management resources in the SPE andplay (FPD) production equipment picked up, leading toFPD businesses. We are going back to the basics offiscal 2014 net sales of ¥612.2 billion, up 23% year onmanagement, working tirelessly toward the strong

year, and operating income of ¥32.2 billion, up 157%.

medium- and long-term growth of the Company. In

However, we also recorded ¥47.0 billion in loss onlight of Tokyo Electron’s stable financial base and theimpairment linked to our withdrawal from the photovol-

recent state of the world economy, we paid annual

taic panel production equipment business, which now

dividends of ¥50.

Transformingfor the Next Half Century
Last year, we made the momentous decision tofundamental global industry. For people around theenter into a merger of equals with Applied Materials,

world to enjoy the benefits of these technologies,

Inc. of the United States to secure further growth, pros-however, we must reduce costs and develop break-perity and the continued development of the industry

through technologies. To do this, the assembly of aover the next 50 years. Aiming to become a global

broad range of technologies and a strong financial

innovator in the semiconductor and display production

base is more important than ever.

equipment industry, the top management of both companies is steadily advancing preparations for the merg-The industry now stands at its greatest inflection point to date. To meet this challenge, Tokyoer, and we hope to launch the new, integrated

Electron, Japan’s leading production equipment

company in the second half of this year.

manufacturer, and the U.S. leader, Applied Materials,

We have now entered the true mobile network
era. In this era, enormous amounts of data travelceaselessly around the world, interwoven with soci-have each resolved to transform themselves andunite to create a new company.
Together, we will work toward an inspired, dynam-ety and all manner of objects, as expressed in theic future. We are confident that the new company will

popular term “internet of things.” This network isblaze the trail, contributing to society by creating greatused for much more than just communication

value and prosperity for shareholders, customers andbetween individuals. It enriches and supports their

the communities where we do business.

lives from the ground up, playing key roles in medicalcare, health, automobiles and transportation, energy

Thank you for your continued support andunderstanding.

and finance. Going forward, semiconductor and FPD
technology is expected to develop considerably as aJune 2014

Tetsuro Higashi
Chairman of the Board, President & CEO

R&D / Intellectual Property

Financial Section

Corporate Data