TOKYO ELECTRON ANNUAL REPORT 2019

PAGE

3CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Review of Operations
and Business Outlook

Interview with the CEO

Financial Section
Investor Information

Corporate GovernanceBusiness Overview and Financial Highlights

Business Overview and Financial Highlights

Semiconductor
Production
Equipment

P Cleaning System

P Etch System

P Wafer Prober

Semiconductor devices are broadly used in mobile devices,such as smartphones and tablets, as well as the data centersthat are indispensable for the processing of big data. With thearrival of the IoT, semiconductor applications will expand in
all fields, from consumer electronics and automobiles tomedicine and healthcare. Tokyo Electron provides a wide
range of semiconductor production equipment used to manufacture such semiconductors along with reliable technicalsupport and service. The main categories of our product lineup are coater/developers, etch systems, deposition systems
and cleaning systems used in wafer processing as well as
wafer probers used in the wafer testing process. In addition,
we also offer such products as wafer bonders/debonders
used in advanced packaging processes.

5.2%
Europe 8.0%

Southeast Asia

North America

11.3%

Taiwan

14.0%

Japan

17.6%

China

17.7%

South Korea

26.2%

Plasma Etch System
Tactras™

Net NetSales
Sales
and andGrossGross
ProfitProfitMarginMargin(Billions(Billionsof yen) of yen)

ALD System
NT333™

(%)

42.0 42.041.2 41.244
39.6 39.640.2 40.240.3 40.3

(Billions(Billionsof yen) of yen)(%)

44320 320

1,2001,200

1,278.2
1,278.233
1,130.7
1,130.7

240 24033

800 800

22160 160
22400 400

01100

15 15 16 16 17 17 18 18 19 19Net Sales
Net Sales

GrossGross
ProfitProfit
MarginMarginSingle Wafer DepositionSystem
Triase +™

OperatingOperating
IncomeIncomeand andOperating
MarginOperatingMargin1,6001,600

799.7799.7
663.9663.9
613.1613.1

FPD
Production
Equipment

P Deposition System

Sales by Region

Coater/Developer
CLEAN TRACK™
LITHIUS Pro™ Z

P Coater/Developer1180

0 0(%)(Billions(Billionsof yen) of yen)(%)

2828280 280

2124.3 24.3
19.5 19.5281.1281.1
17.6 17.6

155.6155.6

14116.8116.8
8088.1 88.1

00

15 15 16 16 17 17 18 18 19 19
Operating
IncomeOperating
IncomeOverseas

Wafer Prober
Precio™ XLOperatingMarginOperatingMargin97.7%

FreeFree
CashCash
FlowFlowFlat panel displays (FPDs) are an essential part of everyday
life, employed in such products as TVs, smartphones and tablets. Going forward, applications for FPDs are expected toexpand even further with the adoption of flexible displays.
Tokyo Electron supplies coater/developers and etch/ash systems for manufacturing FPDs along with solid technical support and service. We also offer inkjet printing systems for
manufacturing OLED panels to take advantage of the expanding OLED display market.

FPD Plasma Etch/Ash SystemBetelex™

(%)

(%)

(Billions(Billionsof yen) of yen)

(Yen) (Yen)32

160 160

1,6001,600

120 12014140 140

161680118.0118.0

80

800

1,513.58
1,513.58

80

15 15 16 16 17 17 18 18 19 19
Net Income
Attributableto Ownersof Parent
Net Income
Attributableto Ownersof Parent
ROE ROE

The amounts in this report in billions, millions and thousands of yen; thousands of U.S. dollars; and thousands of shares as of and for the years ended March 31, 2016 and prior are rounded to the nearest unit.
Such amounts as of and for the years ended March 31, 2017 and onward, including year-on-year differences, are truncated at the nearest unit. Accordingly, totals for the years ended March 31, 2017 and onward
do not necessarily agree with the sum of the corresponding individual amounts.

40040015 15 16 16 17 17 18 18 19 19Free Cash Flow = Cash flows from operating activities + Cash flows
from investing activities (excluding changes in short-term
investments with ­original maturities of less than one year)

1,245.48
1,245.48

1,2001,200

800 800

758 758
624 624600 600

400 400

800 800

352 352

702.26702.2664.2 64.260.4 60.4

7071.9 71.977.9 77.9

CashCashDividends
per Share
Dividends
per Share(Yen) (Yen)

149.5149.5
139.7139.7
24Inkjet Printing System forManufacturing OLED Panels
Elius™

Net NetIncomeper Share
Incomeper Share

3230.1 30.1
29.0 29.0

248.2248.2
24204.3204.3
19.1 19.1

0 0

2.3%

FPD Coater/Developer
Exceliner™

21210 210

770

P Inkjet Printing System for Manufacturing OLED Panels

Japan

13.0 13.0115.2115.2
11.8 11.8
7

P FPD Etch/Ash System

Sales by Region

Net NetIncomeIncomeAttributable
Attributableto Owners
to Ownersof Parentand andROEROEof Parent

310.5310.5
24.9 24.9

14.4 14.4

Single Wafer Cleaning
SystemCELLESTA™ -i

P FPD Coater/Developer

461.10461.10400 400
401.08401.080015 15 16 16 17 17 18 18 19 19

200 200

237 237

143 1430015 15 16 16 17 17 18 18 19 19