TOKYO ELECTRON
LIMITED2002
F A C T

A s

o f

CONTENTS
1

PROFILE2

HIGHLIGHTS

3

BUSINESS ANALYSIS

4

SEMICONDUCTOR MANUFACTURING PROCESS AND TEL PRODUCTS

5

TFT-LCD MANUFACTURING PROCESS AND TEL PRODUCTS

6

MARKET DATA FOR SEMICONDUCTOR PRODUCTION EQUIPMENT

7 TEL’S SEMICONDUCTOR PRODUCTION EQUIPMENT
9TEL’S ELECTRONIC COMPONENTS
TEL’S COMPUTER NETWORK10

FINANCIAL DATA

14FINANCIAL STATEMENTS

21

STOCK INFORMATIONM a r c h

B O O K
3 1 ,

2 0 0 2

Tokyo Electron Group Corporate Organization

Corporate Headquarters

Domestic

Overseas

Tokyo Electron Limited

Engineering and Manufacturing

Sales and Technical Support

Marketing, sales and R&D

Tokyo Electron Tohoku Limited

Tokyo Electron America, Inc.
Tokyo Electron Europe Limited

Tokyo Electron AT Limited
Marketing, sales
Tokyo Electron Kyushu Limited

Tokyo Electron Deutschland GmbHTokyo Electron France S.A.R.L.

Semiconductor production equipment
Tokyo Electron Sapporo Limited
FPD production equipment
Computer network

Tokyo Electron Italia S.p.A.

Tokyo Electron Nederland B.V.
Tokyo Electron España S.L.

Field Support & Equipment Engineering

Tokyo Electron Ireland Limited
Tokyo Electron Israel Limited

Corporate R&D

Tokyo Electron Korea Limited
Tokyo Electron FE Limited

Corporate Administration
Tokyo Electron EE Limited

Tokyo Electron Taiwan Limited
Tokyo Electron (Shanghai) Limited
Engineering and Manufacturing

Electronic Components Sales
Tokyo Electron Massachusetts, LLC
Tokyo Electron Device Limited

Tokyo Electron Texas, LLC
Tokyo Electron Arizona, Inc.

Service-RelatedTokyo Electron Switzerland Limited
Supercritical Systems, Inc.

Tokyo Electron Leasing Co., Ltd.

Timbre Technologies, Inc.

Tokyo Electron Logistics Limited
Tokyo Electron Agency Limited(As of June 2002)

Note: All of the TEL group companies above were consolidated
from fiscal 2000.

PROFILE

T

okyo Electron Limited (TEL) is one of the world’s
leading suppliers of semiconductor and flat pannel
display (FPD) production equipment. Established in
1963, TEL was the first company to introduce American
semiconductor production equipment and integrated circuit(IC) testers to Japan, and it has played an extremely important role in the development of the Japanese semiconductor
industry ever since. Owing to its shift to manufacturing inthe second half of the 1980s, and its rapid but smoothglobalization since the first half of the 1990s, TEL is now
highly regarded as a company which supports the international semiconductor industry from its foundation.
TEL strives to provide customers around the world withthe highest-quality products and services. The Company
therefore emphasizes the development and manufacture ofadvanced products that suit customer needs and the provision of tailored field services. In addition to a global-scale
sales and service network, TEL has commenced the construction of development and manufacturing bases overseas
in order to seize market opportunities even more promptly.
TEL also provides superior electronic components andcomputer network from around the world. The Company’sbusiness comprises the following three fields: semiconductor
production equipment (SPE), electronic components (EC) andcomputer network (CN).

Semiconductor Production
Equipment
TEL has a lineup of leading-edge
systems covering most stages of thesemiconductor wafer production process, and has acquired a large shareof the world market. TEL’s own-brandproducts represent approximately
98% of divisional sales. TEL also
imports and sells products from leading overseas manufacturers. The proportion of TEL’s own-brand products
accounted for by exports is increasing in response to growing demandin overseas markets. In addition toaggressively expanding its worldwide
sales and service network in recent
years, TEL has pushed forward strongly
with the construction of overseas
development and production facilities. TEL is also putting its utmost
effort into the development of nextgeneration new technologies, suchas technology compatible with

300mm wafers. FPD production
equipment, for which large market
growth is forecast in the future, wastransferred to the SPE division fromthe CS division in April 1996.
Electronic Components
TEL deals in a wide range of theworld’s top-brand products in the fieldof semiconductor devices, including
microprocessors, LSIs for communications applications and memory
devices, and provides them to theJapanese market. As a distributor ofelectronic components, TEL has threedesign centers boasting the largest
scale and best technology in Japan.
The Company also designs applicationspecific ICs and develops TEL original
ICs. From July 1998, sales of all electronic components will be handled
by wholly-owned subsidiary Tokyo
Electron Device.

Computer Network
By providing core products for the
information age, such as leadingedge workstations, storage area
networks, Internet technologies,
and other core technologies for thebroadband era, from around theworld, along with a comprehensive
support system, TEL has earned asolid reputation as a distributor withtechnological expertise. TEL’s extensive products and services enable it
to function as a total systems integrator and an effective partner to its
customers in various leading-edge
industries.
1

HIGHLIGHTS

Operating Income (loss) andOperating Margin

Net Sales

Ordinary Income (loss) and
Ordinary Profit Margin

Net Income (loss) and
Return on Sales
(%)

(%)

90,000921

1260,0006

1450,000

630,000

3

7

0

0

0

0

0

0

–6

–50,000–6–30,000–3–7(Millions of yen)

(Millions of yen)(%)

(Millions of yen)(%)

(Millions of yen)

800,000

150,000

18

150,000

18

600,000

100,000

12

100,000

400,000

50,0006

200,00000

2–50,000
’97

’98

’99

’00

’01

’97

’02

Non-consolidated
Consolidated

’98

’99

’00

’01

Return on Equity (ROE) and
Return on Assets (ROA)

’02

’97

Non-consolidated operating income (loss)

’98

’99

’00

’01

’02

’97

’99

’00

’01

’02

’97

Non-consolidated net income (loss)
Consolidated net income (loss)
Non-consolidated return on sales
Consolidated return on sales

Non-consolidated ordinary income (loss)
Consolidated ordinary income (loss)
Non-consolidated ordinary profit margin

Consolidated operating income (loss)
Non-consolidated operating margin
Consolidated operating margin

’98

’98

’99

’00

’01

’02

Non-consolidated ROE
Non-consolidated ROA
Consolidated ROE
Consolidated ROA

Consolidated ordinary profit margin(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

Fiscalyear(Millions of yen)
Non-consolidated
Consolidated
OperatingOperatingOperatingOperatingincome (loss)
margin income (loss)
margin(%)(%)...................................................................................

Fiscalyear(Millions of yen)
Non-consolidated
Consolidated
OperatingOperatingOperatingOperatingincome (loss)
margin income (loss)
margin(%)(%)...................................................................................

Fiscalyear

1997

423,570

432,785

1997

44,342

10.5

54,12412.5

1997

48,25011.4

54,43312.6

1997

27,686

6.5

29,975

6.9

1997

15.2

13.2

15.4

14.0

1998

423,752

455,585

1998

46,36010.9

56,522

12.4

1998

51,66012.2

57,376

12.6

1998

27,782

6.6

30,009

6.6

1998

12.6

12.8

12.8

13.2

1999

266,397

313,820

1999

4,117

1.5

6,383

2.0

1999

7,748

2.9

6,200

2.0

1999

6,503

2.4

1,866

0.6

1999

2.6

1.8

0.7

1.6

2000

364,212440,7292000

13,936

3.8

35,8168.1

2000

16,481

4.5

33,838

7.7

2000

8,128

2.2

19,848

4.5

2000

3.2

4.1

7.5

7.9

2001

626,807723,880

2001

59,056

9.4

121,086

16.7

2001

59,6989.5

119,223

16.5

2001

30,9344.9

62,012

8.6

2001

11.4

11.8

20.4

19.8

2002

332,573

417,825

2002 (13,641)—(18,310)—2002(9,564)—(19,464)—

2002(6,836)—(19,938)

—

2002

(2.5)

(1.7)

(6.2)

(2.8)

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

(Millions of yen)
Non-consolidated
Consolidated
Net
ReturnNet
Returnincome (loss)
on sales income (loss)
on sales(%)(%)...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Non-consolidated(%)
Consolidated

Fiscal year
ROE
ROA
ROE
ROA
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

ROE = (Net income/average total shareholders’ equity) ¥ 100
ROA = (Operating income +interest and dividend income) /average total assets ¥ 100

Notes: 1. TEL’s fiscal year ends March 31. The Company’s fiscal
year is identified by the year in which it ends.
2. Enterprise taxes, formerly included in selling, general andadministrativeexpenses, are included in the provision forincome taxes from 1999.

BUSINESS ANALYSIS

Composition of Net Sales
by Division

Net Sales by Division(Millions of yen)(Consolidated)(%)

Composition of Net Sales
by Region

Net Sales by Region(Consolidated)(Millions of yen)(Consolidated)(%)

800,000

100

800,000

100

600,00075

600,000

75

400,000

50

400,000

50

200,000

25

200,000

25

0

0
’97

’98

’99

’00

’01

0
’97

’02

’98

’99

’00

’01

Semiconductor production equipment

Electronic components
Computer network
OthersElectronic components
Computer network
OthersComputer
network(Non-consolidated)(%)(FY 2002)

’97

’98

’99

’00

’01

’02

3
’97

’98

’99

’00

’01

’02

Japan
U.S.A.
EuropeKorea
TaiwanOthersJapan
U.S.A.
EuropeKorea
TaiwanOthersSales of TEL products
Sales of non-TEL products(%)(Millions of yen)
Semiconductor
production
equipment(Consolidated)

0’02

Semiconductor production equipment

Percentage of TEL Products
to Net Sales

Semiconductor
production
equipment

Computer
network...................................................................................

...................................................................................

Fiscal(%)
year
Japan U.S.A. Europe Korea Taiwan Others...................................................................................

1997

355,877

62,50014,408

—

1997

82.2

14.5

3.3

—

1997

—

1997

—

—

—

—

—

—

1998

380,184

60,13915,262

—

1998

83.4

13.2

3.4

—

1998 230,550 70,759 25,768 28,784 76,259 23,464

1998

50.6

15.5

5.7

6.3

16.7

5.2

1999

242,240

57,734

12,878

968

1999

77.2

18.4

4.1

0.3

1999 149,838 56,489 22,702 18,120 50,724 15,948

1999

47.8

18.0

7.2

5.8

16.2

5.0

2000

355,103

72,051

12,357 1,218

2000

80.6

16.3

2.8

0.3

2000 183,987 65,637 33,588 36,826 101,066 19,624

2000...................................................................................

41.8

14.9

7.6

8.3

22.9

4.5

Sales ofnon-TEL products

2001

619,001

89,211

14,054 1,614

2001

85.5

12.3

2.0

0.2

2001 299,272 140,228 50,463 59,912 131,152 42,851

2001

41.3

19.4

7.0

8.3

18.1

5.9

...................................................................................

2002

325,71573,65817,031 1,421

2002

78.0

17.6

4.1

0.3

2002 186,516 94,774 28,330 23,197 60,488 24,520

2002

44.6

22.7

6.8

5.5

14.5

5.9

Fiscalyear

Electronic
components

Others...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Fiscalyear

Electronic
components

Others...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Notes: 1. TEL’s fiscal year ends March 31. The Company’s fiscal
year is identified by the year in which it ends.
2. Results restated retroactively owing to a structural
reorganization in fiscal 1997. Net sales, orders and orderbacklog of LCD production equipment—formerly part of

—

—

—

—

—

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Computer Systems—have been included in the results of
Semiconductor Production Equipment to facilitate year-onyear comparison.

Fiscal(%)
year
Japan U.S.A. Europe Korea Taiwan Others...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................

(Millions of yen)(%)...................................................................................

Sales ofTEL products
311,223

93.6

21,3506.4...................................................................................

SEMICONDUCTOR MANUFACTURING PROCESS AND TEL PRODUCTS

Silicon Wafer

Slicing andPolishingSingle Crystal Ingot

TEL’s own-brand products

Wafer Processing
DopantOxidation Film
Gate
Wafer CleaningThin Oxidation

DopingInter Metal Dielectric

Polishing

Cleaning System

Oxidation Furnace

Ion Implanter

IMD CVD, SOD

CMP

Metal Interconnect

Contact & Via

Metalization

Polishing

Contact & Via Filling

Metal CVD or Sputter

CMP

Metal CVD

4

Metal

Probe Testing

Passivation

Wafer Prober

Plasma CVD

Produced using the photolithographic process shown below.

Assembly and Packaging
ResistPhoto Resist Coating

Exposure

Developing

Etching

AshingCoaterStepperDeveloper

Dry Etch System

Ash System

Testing
CVD = Chemical Vapor Deposition
CMP= Chemical Mechanical Polisher
SOD = Spin-on DielectricTFT-LCD MANUFACTURING PROCESS AND TEL PRODUCTS

Color filter
Liquid crystal

TFT Fabrication Proces
Seal

Array Testing

Back light

Glass Substrate

Testing

TFT substrate

Cutting
ProberLCD Assembly

Cleaning System

CVD or Sputter

CoaterResistGlass Cleaning

Deposition

Photo Resist Coating

Stepper or Aligner

Developer

Dry Etch System

Exposure

Developing

Etching

End Product

Mask

Silicon nitride film

Ash System

Metaln+ Amorphous silicon
Amorphous silicon

The same process
is repeated
six or seven times

Silicon nitride film

TFT Formation

AshingMetal
TFT = Thin Film Transistor

5

MARKET DATA FOR SEMICONDUCTOR PRODUCTION EQUIPMENT

Global Wafer Processing and Fabrication Equipment Market by Region(Millions of US$)
36,00027,00018,000

6
9,000

0
’91

’92

’93

’94

’95

’96

’97

’98

’99

’00

’01

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Japan
Americas
Europe, Middle East and Africa
Asia/Pacific(Millions of US$)Calendar year

Japan

2,984

2,118

2,423

3,660

6,299

6,540

4,986

3,427

3,788

6,905

6,040

Americas

1,502

1,590

2,134

3,204

5,339

5,872

6,861

4,823

5,383

9,294

7,355

Europe, Middle East and Africa

653

662

1,028

1,396

2,369

2,839

2,427

2,137

2,477

4,736

3,576

Asia/Pacific

841

795

1,361

2,620

5,151

6,534

6,063

4,300

6,644

12,847

7,179

Total

5,980

5,165

6,945

10,88019,15921,785

20,337

14,686

18,29333,78424,152.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................

.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Source: Gartner Dataquest
May 2002
GJ02157

TEL’S SEMICONDUCTOR PRODUCTION EQUIPMENT [SPE]OrdersSPE Sales

Sales of FPD
Production Equipment

Order Backlog

Sales of TEL Products(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

800,000

800,000

300,000

80,000600,000

600,000

600,000

225,000

60,000450,000

400,000

400,000

150,000

40,000300,000

200,000

200,000

75,00020,000150,000

0

0
’97

’98

’99

’00

’01

’02

0
’97

Non-consolidated
Consolidated

’98

’99

’00

’01

’02

(Millions of yen)

0’97

Non-consolidated
Consolidated(Non-consolidated)

’98

’99

’00

’01

’02

(Non-consolidated)

0
’97

’98

’99

’00

’01

’97

’02

’98

’99

’00

’01

7

’02

Non-consolidated
Consolidated(Millions of yen)
Fiscal year Non-consolidated
Consolidated...................................................................................

(Millions of yen)
Fiscal year Non-consolidated
Consolidated...................................................................................

(Millions of yen)
Fiscal year Non-consolidated
Consolidated...................................................................................

Fiscalyear(Millions of yen)...................................................................................

Fiscalyear(Millions of yen)...................................................................................

1997

353,215355,877

1997

287,863—

1997

169,984—

1997

17,988

1997

313,955

1998

371,457

380,184

1998

325,910—

1998

124,436—

1998

24,222

1998

351,055

1999

238,542

242,240

1999

198,091—

1999

83,98584,175

1999

16,5401999

226,397

2000

351,639

355,103

2000

516,313

520,472

2000

248,659

249,545

2000

42,6392000

345,224

2001

612,540

619,001

2001

623,640

627,573

2001

259,759

258,117

2001

71,779

2001

604,729

2002

315,510

325,715

2002

193,231207,189

2002

137,480

139,591

2002

41,438

2002

310,393...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Notes: 1. TEL’s fiscal year ends March 31. The Company’s fiscal
year is identified by the year in which it ends.
2. Results restated retroactively owing to a structural
reorganization in fiscal 1997. Net sales, orders and orderbacklog of LCD production equipment—formerly part ofComputer Systems—have been included in the results of...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Semiconductor Production Equipment to facilitate year-onyear comparison.
3. In the past, TEL released orders received and orders
backlog data only on a non-consolidated basis. As of the
fiscal year ended March 31, 2000, this data is expressed ona consolidated basis.

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Composition of SPE
Sales by Region

SPE Sales by Region(Consolidated)(Millions of yen)Overseas Sales of SPE(Consolidated)

(%)

(%)

(FY 2002)

Percentage of SPE(Millions of yen)(%)

800,000

100

440,000

100

600,00075

330,000

75

400,000

50

220,000

50

200,000

25

110,000

25

0

0

0

8

’97

’98

’99

’00

’01

’97

’02

’98

’99

’00

’01

Japan
U.S.A.
EuropeKorea
TaiwanOthersJapan
U.S.A.
EuropeKorea
TaiwanOthers

0
’97

’02

’98

’99

’00

’01

’02

’97

Non-consolidated
Consolidated

Japan
U.S.A.
EuropeKorea
TaiwanOthers

’98

’99

’00

’01

’02

Non-consolidated
Consolidated(Millions of yen)
Fiscal year Japan (% of total )U.S.A.
EuropeKorea
TaiwanOthersTotal.............................................................................................................................................................................................................................................................................

(Millions of yen)
Fiscal year Non-consolidated
Consolidated...................................................................................

(%)
Fiscal year Non-consolidated
Consolidated...................................................................................

1997

180,277 (50.7)

28,651 (08.0)

28,707 (8.1)——

118,242 (33.2)

355,877

1997

173,267

175,600

1997

49.1

49.3

1998

155,982 (41.0)

70,642 (18.6)

25,768 (6.8)

28,779 (07.6)

76,162 (20.0)

22,851 (06.0)

380,184

1998

216,430

224,202

1998

58.3

59.0

1999

79,477 (32.8)

56,150 (23.2)

22,701 (9.4)

18,120 (07.5)

50,507 (20.8)

15,285 (06.3)

242,240

1999

159,066

162,763

1999

66.7

67.2

.............................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................

...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................

2000

99,650 (28.1)

65,537 (18.5)

33,559 (9.4)

36,826 (10.4)

100,961 (28.4)

18,570 (05.2)

355,103

2000

252,242

255,453

2000

71.7

71.9

2001

196,469 (31.7)

140,158 (22.6)

50,463 (8.2)

59,912 (09.7)

131,148 (21.2)

40,851 (06.6)

619,001

2001

416,272

422,532

2001

68.0

68.3

2002

96,724 (29.7)

94,733 (29.1)

28,319 (8.7)

23,196 (07.1)

60,474 (18.6)

22,269 (06.8)

325,715

2002

218,854

228,990

2002

69.4

70.3

.............................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................

Notes: 1. TEL’s fiscal year ends March 31. The Company’s fiscal
year is identified by the year in which it ends.
2. Results restated retroactively owing to a structural
reorganization in fiscal 1997. Net sales, orders and orderbacklog of LCD production equipment—formerly part ofComputer Systems—have been included in the results of
Semiconductor Production Equipment to facilitate year-onyear comparison.

...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................

TEL’S ELECTRONIC COMPONENTS [EC]EC SalesTEL’S COMPUTER NETWORK [CN]Orders and Order Backlog

CN SalesOrders and Order Backlog(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

100,000

100,000

20,00020,00075,00075,00015,00015,00050,00050,00010,00010,00025,00025,000

5,000

5,000

0

0

0
’97

’98

’99

’00

’01

’02

’97

Non-consolidated
Consolidated

’98

’99

’00

’01

0
’97

’02

’98

’99

’00

’01

’02

’97

Non-consolidated
Consolidated(Non-consolidated)
OrdersOrder backlog

1997

55,89562,500...................................................................................

1998

36,76160,139...................................................................................

1999

14,811

57,734...................................................................................

2000

—

72,051

2001—

89,211...................................................................................
...................................................................................

2002

—

73,658...................................................................................

Fiscal year

’00

’01

9

’02

(Consolidated)
OrdersOrder backlog
Orders(Millions of yen)Order backlog(Non-consolidated)...................................................................................

1997

47,338

3,909

1998

35,569

2,717

1999

12,093—...................................................................................
...................................................................................

(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

1997

14,45914,408...................................................................................

1998

15,532

15,262...................................................................................

1999

13,044

12,878...................................................................................

...................................................................................

2000

12,573

12,357(Consolidated)...................................................................................

2001

14,267

14,054

2000

77,558

11,968

2001

89,178

11,937

2002

70,3228,601...................................................................................
...................................................................................
...................................................................................

Notes: 1. TEL’s fiscal year ends March 31. The Company’s fiscal
year is identified by the year in which it ends.
2. Results restated retroactively owing to a structural
reorganization in fiscal 1997. Net sales, orders and orderbacklog of LCD production equipment—formerly part ofComputer Systems—have been included in the results of’99(Non-consolidated)
OrdersOrder backlog(Consolidated)
OrdersOrder backlog(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

’98

Semiconductor Production Equipment to facilitate year-onyear comparison.
3. In the past, TEL released orders received and orders
backlog data only on a non-consolidated basis. As of the
fiscal year ended March 31, 2000, this data is expressed ona consolidated basis.

...................................................................................
...................................................................................

2002

17,063

17,031...................................................................................

Fiscal year

Orders(Millions of yen)Order backlog(Non-consolidated)...................................................................................

1997

13,686

4,911

1998

15,039

4,417

1999

11,6072,980...................................................................................
...................................................................................
...................................................................................
(Consolidated)...................................................................................

2000

13,150

3,767

2001

15,476

5,190

2002

16,4084,567...................................................................................
...................................................................................
...................................................................................

FINANCIAL DATANet Sales

R&D Expenses

Orders and Order Backlog

Capital Expenditures

Depreciation Expenses(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

800,000

800,000

60,00060,00028,000600,000

600,000

45,00045,00021,000400,000

400,000

30,00030,00014,000200,000

200,000

15,00015,000

7,000

0

0

10

’97

’98

’99

’00

’01

’02

Non-consolidated
Consolidated

0

0
’97

’98

’99

’00

’01

’02

’97

’98

’99

’00

’01

Non-consolidated
Consolidated(Non-consolidated)
OrdersOrder backlog

0
’97

’02

’98

’99

’00

’01

’02

’97

Non-consolidated
Consolidated

’98

’99

’00

’01

’02

Non-consolidated
Consolidated(Consolidated)
OrdersOrder backlog(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

1997

423,570

432,785...................................................................................

1998

423,752

455,585

1999

266,397

313,820

2000

364,212440,729...................................................................................
...................................................................................
...................................................................................

2001

626,807723,880

2002

332,573

417,825...................................................................................
...................................................................................

(Millions of yen)Order backlog(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

1997

2,779

20,988

1997

6,473

21,035

1997

3,552

10,357

1998

3,654

26,813

1998

14,16939,002

1998

4,414

13,125

1999

5,161

26,842

1999

5,863

17,452

1999

5,629

19,290...................................................................................

2000

13,85837,135

2000

3,124

18,999

2000

5,719

19,446(Consolidated)...................................................................................

2001

18,58052,911

2001

5,420

49,403

2001

5,634

21,6792002

19,26053,827

2002

6,068

30,946

2002

6,408

26,294

Fiscal year

Orders(Non-consolidated)...................................................................................

1997

348,888

178,805

1998

376,519

131,571

1999

221,792

86,966...................................................................................
...................................................................................

2000

612,399

265,281

2001

733,843

275,2442002

295,340

152,759...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................

Notes: 1. TEL’s fiscal year ends March 31. The Company’s fiscal
year is identified by the year in which it ends.
2. In the past, TEL released orders received and orders
backlog data only on a non-consolidated basis. As of the
fiscal year ended March 31, 2000, this data is expressedon a consolidated basis.

3. Prior to 1999, figures for capital expenditures anddepreciation expenses were listed under Group Data, which
included figures for non-consolidated subsidiaries.

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Cash Flow

Balance of Financial Revenue
and Expense

Net Income per Person

Number of Employees(Millions of yen)Interest Coverage Ratio(Millions of yen)

(Millions of yen)(Times)90,00012,000

27

3,000

60

60,000

9,000

18

1,500

40

30,000

6,000

9

0

20

0

3,000

0

–1,5000–30,000

0
’97

’98

’99

’00

’01

’02

Non-consolidated
Consolidated–3,000

–9
’97

’98

’99

’00

’01

’02

’97

’98

’99

’00

’01

’02

Non-consolidated
Consolidated

Non-consolidated
Consolidated
Group

–20
’97

’98

’99

’00

’01

’02

’97

Non-consolidated
Consolidated

’98

’99

’00

’01

11

’02

Non-consolidated
Consolidated(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

Fiscal(People)year
Non-consolidated Consolidated Group...................................................................................

(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Times)Fiscal year
Non-consolidated Consolidated...................................................................................

1997

31,23940,142

1997

1,242

6,277

6,979

1997

22.29

4.77

1997

1,776

(1,012)

1997

31.7

28.6

1998

32,19742,661

1998

1,265

7,287

8,233

1998

21.96

4.11

1998

2,755

(102)

1998

44.8

32.9

1999

12,133

19,787

1999

1,218

7,835

8,567

1999

5.33

0.23

1999

1,730

(1,251)

1999

4.8

3.4

2000

13,84839,294

2000

1,227

8,946

—

2000

6.62

2.21

2000

1,827

(1,687)

2000

11.1

18.4

2001

36,56883,691

2001

1,239

10,236

—

2001

24.96

6.06

2001

673

(1,712)

2001

36.5

51.1

2002

(428)

6,356

2002

1,342

10,171—2002(5.09)(1.96)

2002

2,975

(1,629)

2002

(5.8)

(9.1)

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Cash flow = Net income + depreciation

Note: TEL’s fiscal year ends March 31. The Company’s fiscal year is
identified by the year in which it ends.

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Balance of financial revenue and expense = Interest anddividend income − (interest expenses + debt service
expenses)...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Interest coverage ratio = (Operating income + interest anddividend income)/(interest expenses + debt service
expenses)Current Ratio

Working Capital

Shareholder’s Equity

Equity Ratio(%)(Millions of yen)

(Millions of yen)(%)(Times)500

320,000

360,000

70

0.80

400

240,000

270,000

60

0.60

300

160,000

180,000

50

0.40

200

80,00090,000

40

0.20

~

~
12

Debt-to-Equity Ratio

0

0
’97

’98

’99

’00

’01

’02

0
’97

Non-consolidated
Consolidated

’98

’99

’00

’01

’02

Non-consolidated
Consolidated

0

0
’97

’98

’99

’00

’01

’02

’97

Non-consolidated
Consolidated

’98

’99

’00

’01

’02

’97

Non-consolidated
Consolidated

’98

’99

’00

’01

’02

Non-consolidated
Consolidated(%)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Millions of yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(%)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Times)Fiscal year
Non-consolidated Consolidated...................................................................................

1997

319.6

289.2

1997

197,248

191,154

1997

194,434

207,476

1997

56.0

53.6

1997

0.49

0.56

1998

317.7

257.8

1998

251,693

228,368

1998

246,787

261,009

1998

56.1

52.9

1998

0.43

0.52

1999

468.0

421.0

1999

250,458

221,693

1999

249,695

257,716

1999

63.3

62.1

1999

0.39

0.47

2000

297.4

256.2

2000

241,219

228,699

2000

258,380

273,603

2000

58.3

54.8

2000

0.34

0.42

2001

251.5

229.9

2001

293,223

309,800

2001

285,638

333,281

2001

47.5

45.7

2001

0.45

0.55

2002

340.8

322.8

2002

262,396

243,9212002

269,408

307,579

2002

55.3

55.2

2002

0.48

0.57

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Current ratio = (Current assets/current liabilities) × 100...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Working capital = Current assets − current liabilities

Note: TEL’s fiscal year ends March 31. The Company’s fiscal year is
identified by the year in which it ends.

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Equity ratio = (Shareholders’ equity/total liabilities andshareholder’s equity) × 100...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Debt-to-equity ratio = (Average short-term debt + average
long-term debt)/ average shareholders’ equity

Net Income (Loss) per Share

Cash Flow per Share

Shareholders’ Equity per Share

Cash Dividends per Share

Payout Ratio

(Yen)

(Yen)

(Yen)

(Yen)

(%)

450

480

2,000

40

120

300

320

1,500

30

80

150

160

1,000

20

40

0

0

500

10

0

–150

–160
’97

’98

’99

’00

’01

’02

0
’97

Non-consolidated
Consolidated

’98

’99

’00

’01

’02

0
’97

Non-consolidated
Consolidated

’98

’99

’00

’01

–40

’02

’97

Non-consolidated
Consolidated

’98

’99

’00

’01

’02

’97

ActualAdjusted

’98

’99

’00

’01

13

’02

Non-consolidated
Consolidated(Yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Yen)
Fiscal year
Non-consolidated Consolidated...................................................................................

(Yen)
Fiscal year
ActualAdjusted...................................................................................

(%)
Fiscal year
Non-consolidated Consolidated...................................................................................

1997

168.07181.97

1997

189.64243.681997

1,176.91

1,255.88

1997

28.00

25.45

1997

15.16

14.01

1998

161.69174.68

1998

187.38248.33

1998

1,413.70

1,495.20

1998

30.00

30.00

1998

18.73

17.34

1999

37.25

10.70

1999

69.50

113.46

1999

1,429.91

1,477.93

1999

12.00

12.00

1999

32.17

112.14

2000

46.42

113.53

2000

79.08

224.752000

1,470.91

1,560.27

2000

14.00

14.00

2000

30.16

12.35

2001

176.08353.762001

208.15477.202001

1,625.80

1,901.38

2001

38.00

38.00

2001

21.53

10.74

2002

(39.04)(113.85)2002(2.45)

36.30

2002

1,538.72

1,756.73

2002

8.00

8.00

2002

(20.49)(7.02)...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Net income (loss) per share = Net income (loss)/average
total number of shares issued...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Cash flow per share = Cash flow/average total number ofshares issued

Notes: 1. TEL’s fiscal year ends March 31. The Company’s fiscal
year is identified by the year in which it ends.
2. Per share amounts prior to 1998 have been restated toreflect a 1.1-for-1 stock split.

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Shareholders’ equity per share = Shareholders’equity/ total
number of shares issued...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................
...................................................................................

Payout ratio = (Total cash dividends /net income (loss)) × 100

FINANCIAL STATEMENTS

Consolidated Statement of Income (11-Year Summary)(Millions of yen)

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
...............................................................................................................................................................................................................................................................................................................................
Net
sales
197,297 153,914 189,712 251,683 401,775 432,785 455,585 313,820 440,729 723,880 417,825...............................................................................................................................................................................................................................................................................................................................
Cost
of
sales
144,227
121,029 145,877 178,923 270,125 297,546 304,825 225,962 303,839 458,902 302,270...............................................................................................................................................................................................................................................................................................................................
Gross
profit53,07032,885 43,835
72,760 131,650 135,239 150,760
87,858 136,890 264,978 115,555...............................................................................................................................................................................................................................................................................................................................
Selling,
generalandadministrative
expenses
37,76230,05034,06051,186
71,471
81,114
94,237
81,475 101,074 143,892 133,865...............................................................................................................................................................................................................................................................................................................................
Portion of enterprise tax included in selling, generalandadministrative expenses*3
1,737
700
1,123
2,851
7,575
6,264
6,773
—
—
—
—
...............................................................................................................................................................................................................................................................................................................................
Operating income (loss)
15,3082,835
9,775
21,57460,179 54,124
56,522
6,383
35,816 121,086 (18,310)
Fiscal year

14

Other
income (expenses)
273
1,860
169
(1,777) (2,656)98(462)(345) (6,127) (21,954)(4,609)...............................................................................................................................................................................................................................................................................................................................
Interestanddividend
income
3,844
3,624
2,128
2,436
1,053
909
1,664
898
276
669
351
...............................................................................................................................................................................................................................................................................................................................
Interest expenses(2,645) (2,563) (2,245) (2,045) (1,711) (1,870) (1,640) (2,003) (1,960) (2,378)(1,960)...............................................................................................................................................................................................................................................................................................................................
Other,
net
(926)
799
286
(2,168)(1,998)
1,059
(486)
760
(4,443)(20,245)(3,000)...............................................................................................................................................................................................................................................................................................................................
Income(loss) before income taxes
15,581
4,695
9,944
19,79757,523 54,222
56,0606,038
29,68999,132 (22,919)...............................................................................................................................................................................................................................................................................................................................
6,964
2,852
4,500
10,31026,873 24,247
26,051
4,167
9,836
37,099(2,990)
Provisionfor income taxes*3, 4...............................................................................................................................................................................................................................................................................................................................
Equityin income (loss) of affiliates
(184)
(223)
(313)
194
314
—
—
—
—
—
—
...............................................................................................................................................................................................................................................................................................................................
Foreigncurrency translation adjustment and other
(82)
172
(2)
50
—
—
—
—
—
—
—
...............................................................................................................................................................................................................................................................................................................................
Minority
interest
—
—
—
—
—
—
5
5
21
8
...............................................................................................................................................................................................................................................................................................................................
Net income (loss)

8,351

Notes: 1. The Company’s fiscal year is identified by the year in which 3. Enterprise taxes, formerly included in selling, general andit ends. Until 1990, the Company’s fiscal year ended on
administrative expenses, are included in provision for
September 30. Since 1991, the Company’s fiscal year has
income taxes from 1999.
ended on March 31.
4. TEL began using tax-effect accounting during the fiscal year
2. Certain parts of the fiscal 1997 financial statements haveended March 31, 2000. Consequently, adjustments tobeen reclassified. Prior year amounts have been restated toincome and enterprise taxes are included.
conform with the fiscal 1997 presentation.

1,792

5,129

9,731

30,96429,97530,0091,866

19,84862,012(19,938)

Non-Consolidated Statement of Income (11-Year Summary)(Millions of yen)

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
...............................................................................................................................................................................................................................................................................................................................
Operating income (loss)
Net
sales
196,335 153,724 189,716 251,853 402,407 423,570 423,752 266,397 364,212 626,807 332,573...............................................................................................................................................................................................................................................................................................................................
Cost of sales
151,437 126,834 158,404 206,162 320,527 345,905 341,931 236,783 315,125 518,655 301,942...............................................................................................................................................................................................................................................................................................................................
Gross
profit
44,897
26,890 31,312
45,69181,879 77,664
81,821
29,613 49,087 108,152
30,631...............................................................................................................................................................................................................................................................................................................................
Selling, general and administrative expenses
31,47824,507 24,491
29,12636,522 33,321
35,46025,496 35,151
49,09544,272...............................................................................................................................................................................................................................................................................................................................
Portion of enterprise tax included in selling, generaland administrative expenses*3
1,687
628
1,095
2,371
6,109
5,484
6,222
—
—
—
—
...............................................................................................................................................................................................................................................................................................................................
Operating income (loss)
13,4192,382
6,821
16,56445,357 44,342
46,360
4,117
13,93659,056 (13,641)
Fiscal year

Other income (expenses)
Other
income
7,014
6,880
4,942
5,766
5,440
6,539
7,968
7,129
6,628
4,811
6,976
...............................................................................................................................................................................................................................................................................................................................
Interestanddividend
income
4,822
4,596
2,779
3,168
2,451
3,277
3,876
3,281
3,394
2,356
4,539
...............................................................................................................................................................................................................................................................................................................................
Other
2,191
2,283
2,163
2,597
2,989
3,262
4,092
3,848
3,234
2,455
2,437
...............................................................................................................................................................................................................................................................................................................................
Other
expenses
4,217
3,203
3,412
3,716
2,888
2,632
2,669
3,498
4,083
4,169
2,899
...............................................................................................................................................................................................................................................................................................................................
Interest expenses
2,342
2,352
2,084
1,891
1,521
1,450
994
1,403
1,563
1,680
1,563
...............................................................................................................................................................................................................................................................................................................................
Other
1,875
850
1,327
1,824
1,366
1,182
1,674
2,095
2,519
2,488
1,335
...............................................................................................................................................................................................................................................................................................................................
Ordinary income (loss)

16,215

6,059

8,351

18,613

47,91048,25051,6607,748

16,481

59,698(9,564)

Unusual or infrequent income (loss)
Unusualor infrequent income
431
115
1,335
1
64
188
38
430
550
492
1,158
...............................................................................................................................................................................................................................................................................................................................
Unusualorinfrequentlosses
1,579
387
1,427
2,282
2,711
455
1,184
296
3,792
6,957
4,057
...............................................................................................................................................................................................................................................................................................................................
Income(loss) before income taxes
15,0685,787
8,258
16,33345,262 47,982
50,513
7,882
13,23953,234 (12,462)...............................................................................................................................................................................................................................................................................................................................
*3, 4
Provisionfor income taxes
6,795
2,615
4,354
8,622
20,730 20,296
22,731
1,378
5,110
22,299(5,626)...............................................................................................................................................................................................................................................................................................................................
Net income (loss)
8,273
3,172
3,904
7,711
24,532 27,686
27,782
6,503
8,128
30,934(6,836)
Notes: 1. The Company’s fiscal year is identified by the year in which 3. Enterprise taxes, formerly included in selling, general andit ends. Until 1990, the Company’s fiscal year ended on
administrative expenses, are included in provision for
September 30. Since 1991, the Company’s fiscal year has
income taxes from 1999.
ended on March 31.
4. TEL began using tax-effect accounting during the fiscal year
2. Certain parts of the fiscal 1997 financial statements haveended March 31, 2000. Consequently, adjustments tobeen reclassified. Prior year amounts have been restated toincome and enterprise taxes are included.
conform with the fiscal 1997 presentation.

15

Consolidated Balance Sheet (11-Year Summary)(Millions of yen)

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
...............................................................................................................................................................................................................................................................................................................................
ASSETS
Fiscal year

Current assets
Cash and cash equivalents
69,67063,770 75,448
81,68749,336 31,016
71,057
46,910 79,519
65,32048,409...............................................................................................................................................................................................................................................................................................................................
Marketable securities
1,762
1,064
1,064
1,010
985
978
835
835
835
—
10
...............................................................................................................................................................................................................................................................................................................................
Trade
notes
and
accounts
receivable
88,10576,271
93,797
118,434
191,242
180,648
192,005
140,746
175,153
302,953
167,982...............................................................................................................................................................................................................................................................................................................................
Allowance for doubtful accounts
(844)
(758)
(934) (1,140) (1,810) (1,692) (1,822) (1,134) (1,029) (1,720)(620)...............................................................................................................................................................................................................................................................................................................................
Inventories
35,03938,80338,00047,24774,58776,335
100,372
88,085
112,481
161,981
127,352...............................................................................................................................................................................................................................................................................................................................
Deferred tax assets
—
—
—
—
—
—
—
—
5,306
12,6593,402...............................................................................................................................................................................................................................................................................................................................
Prepaid expenses and other current assets
4,107
4,009
5,577
4,621
4,260
4,901
10,63615,306
2,892
7,048
6,888
Total current assets
197,839 183,159 212,952 251,859 318,600 292,186 373,083 290,748 375,157 548,241 353,423
16

Investments and other assets
Foreign currency translation adjustments

24,982

22,194

18,497

21,11523,33628,76533,61832,06325,52256,54968,981

41

48

92

100

—

—

—

—

1,094

—

—

Property, plant and equipment
Land
7,969
8,472
8,331
8,839
10,135 10,306
13,67817,163 16,554
19,69819,908...............................................................................................................................................................................................................................................................................................................................
Buildings
28,90032,19337,271
41,541
48,66656,94973,847
81,527
89,795
106,753
114,586...............................................................................................................................................................................................................................................................................................................................
Machinery and equipment
16,472
18,184 22,516
27,52429,790 38,555
46,967
62,777 67,520
84,607
95,615...............................................................................................................................................................................................................................................................................................................................
Construction in progress
4
1,196
24
206
3,955
2,504
4,181
97
877
853
5,139
Total property, plant and equipment
53,34560,045 68,142
78,11092,546 108,314 138,673 161,564 174,746 211,911 235,248...............................................................................................................................................................................................................................................................................................................................
Accumulated depreciation(21,451) (27,040) (30,494) (32,909) (34,432) (42,188) (51,774) (69,472) (77,020) (87,190) (100,737)
Net property, plant and equipment
31,89433,005 37,648
45,201
58,114 66,126
86,89992,092 97,726 124,721 134,511
Total assets
Notes: 1. TEL’s fiscal year ends March 31. The Company’s
2. Certain parts of the fiscal 1997 statements havefiscal year is identified by the year in which it ends.
been reclassified. Prior year amounts have been
Until 1990, the Company’s fiscal year ended onrestated to conform with the fiscal 1997
September 30. Since 1991, the Company’s fiscalpresentation.
year has ended on March 31.

254,756

238,406

269,189

318,275

3. Short-term loans to subsidiaries and affiliates until
1999 are included in other current assets.

400,050

387,077

493,600

414,903499,499

729,511556,915

Consolidated Balance Sheets (10-year summary)(Millions of yen)

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
...............................................................................................................................................................................................................................................................................................................................
LIABILITIES AND SHAREHOLDERS’ EQUITY
Fiscal year

Current
liabilities...............................................................................................................................................................................................................................................................................................................................
Short-termborrowings and commercial paper
11,281
12,156
9,258
3,866
19,393 12,066
56,91721,657 23,998
78,462
23,924...............................................................................................................................................................................................................................................................................................................................
Current portion of long-term debt
16,282——
39,6859,000
17,9199,358
1,536
32,6992,970
26,387...............................................................................................................................................................................................................................................................................................................................
Trade
notes
and
accounts
payable19,012
21,231
29,40336,96358,18746,04948,73436,23562,57487,35041,053...............................................................................................................................................................................................................................................................................................................................
Accrued income taxes
2,477
1,424
4,092
11,01027,554 15,514
18,818
1,488
11,84341,4401,663...............................................................................................................................................................................................................................................................................................................................
Allowancefor
employees'
bonuses
3,237
2,478
2,596
4,285
4,781
5,410
6,507
4,117
7,375
10,9482,463...............................................................................................................................................................................................................................................................................................................................
Accrued expenses and other current liabilities
3,249
2,562
3,165
3,773
4,596
4,074
4,381
4,022
7,969
17,271
14,012
Total current liabilities
55,53839,851 48,514
99,582 123,511 101,032 144,715
69,055 146,458 238,441 109,502
Long-term debt, less current portion
49,48549,707 68,439
58,596
87,834 70,592
77,657
77,709 67,278 126,348 105,452...............................................................................................................................................................................................................................................................................................................................
Allowanceforretirement
andseverance
benefits
3,155
3,433
3,907
5,972
7,075
7,028
8,362
9,344
11,58129,80732,984...............................................................................................................................................................................................................................................................................................................................
Other non-current liabilities
2,698
1,105
2,181
858
423
105
141
777
545
1,576
1,340
Total liabilities
110,876
94,096 123,041 165,008 218,843 178,757 230,875 156,885 225,862 396,172 249,278
Foreign currency translation adjustment

—

—

—

—

365

844

1,716

276

—

—

—

Minority interest

—

—

—

—

—

—

—

26

34

58

58

Shareholders’ equity
Common stock
29,611
29,867 29,867
29,86729,922 30,755
45,44545,532 47,163
47,21347,214...............................................................................................................................................................................................................................................................................................................................
Additional paid-in capital
52,68152,937 52,937
52,93752,991 53,823
68,507
68,594 70,225
70,27570,276...............................................................................................................................................................................................................................................................................................................................
Legal
reserve
2,339
2,561
2,775
3,000
3,300
3,739
4,228
—
—
—
—
...............................................................................................................................................................................................................................................................................................................................
Retained earnings
59,256
58,953 60,575
67,46894,640 119,175 142,854 144,715 157,876 214,920 190,195...............................................................................................................................................................................................................................................................................................................................
Unrealized
gains
onsecurities
—
—
—
—
—
—
—
—
—
1,658
1,171
...............................................................................................................................................................................................................................................................................................................................
Foreign currency translation adjustment
—
—
—
—
—
—
—
—
—
2,734
3,738
...............................................................................................................................................................................................................................................................................................................................
Treasury stock at cost
(7)
(8)
(6)
(5)
(11)
(16)
(25) (1,125) (1,661) (3,519)(5,015)
Total shareholders’ equity
143,880 144,310 146,148 153,267 180,842 207,476 261,009 257,716 273,603 333,281 307,579
Total liabilities and shareholders’ equity
Notes: 1. The Company’s fiscal year is identified by the year in which
it ends. Until 1990, the Company’s fiscal year ended on
September 30. Since 1991, the Company’s fiscal year has
ended on March 31.

254,756

238,406

2. Certain parts of the fiscal 1997 financial statements havebeen reclassified. Prior year amounts have been restated toconform with the fiscal 1997 presentation.

269,189

318,275

400,050

387,077

493,600

414,903499,499

729,511556,91517

Non-Consolidated Balance Sheet (11-Year Summary)(Millions of yen)

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
...............................................................................................................................................................................................................................................................................................................................
ASSETS
Fiscal year

18

Current assets
Cash and time deposits
69,05362,734 75,011
80,90946,465 27,974
67,827
41,477 72,635
51,42039,969...............................................................................................................................................................................................................................................................................................................................
Trade
notes
and
accounts
receivable
89,24977,617
94,837
119,064
190,919
176,197
183,428
124,290
155,194
271,659
147,322...............................................................................................................................................................................................................................................................................................................................
Marketable securities
1,761
1,063
1,063
1,009
984
977
834
834
834
—
10
...............................................................................................................................................................................................................................................................................................................................
Inventories
29,47930,73026,55523,45230,937
29,13035,976
27,07527,61039,60847,078...............................................................................................................................................................................................................................................................................................................................
Short-term loans to subsidiaries and affiliates
5,940
10,875 21,524
33,27349,472 51,361
77,059 123,159 105,014 112,875 128,782...............................................................................................................................................................................................................................................................................................................................
Allowancefordoubtfulaccounts
(899)
(847)
(1,114)(1,444)(2,277)(2,148)(2,427) (1,848) (1,563) (1,774)(766)...............................................................................................................................................................................................................................................................................................................................
Prepaid expenses and other current assets
2,599
1,232
1,699
3,104
3,338
3,563
4,612
3,529
3,707
13,026
8,952
Total current assets
197,182 183,404 219,575 259,369 319,840 287,055 367,311 318,519 363,433 486,815 371,349

Fixed assets
Net
property, plant and equipment
23,98523,443 24,012
26,405
26,115 28,702
38,576
38,665 36,100
33,73534,434...............................................................................................................................................................................................................................................................................................................................
Buildings
11,827
10,712
11,053
10,515
10,45012,523
20,396
18,727
16,70013,02912,629...............................................................................................................................................................................................................................................................................................................................
Machinery and equipment
4,649
3,532
5,248
7,518
5,400
6,024
6,619
6,619
6,018
5,806
6,515
...............................................................................................................................................................................................................................................................................................................................
Land
7,508
8,011
7,688
8,195
9,106
9,054
11,372
13,31813,318
14,835
14,840...............................................................................................................................................................................................................................................................................................................................
Construction in progress
—
1,186
21
175
1,158
1,100
187
—
64
64
449
...............................................................................................................................................................................................................................................................................................................................
Intangible
assets
102
98
171
164
157
274
625
546
3,261
5,878
8,945
...............................................................................................................................................................................................................................................................................................................................
Investments
26,30125,454 23,407
25,28328,677 31,218
33,351
36,695 40,482
74,986
72,293
Total fixed assets
50,39048,995 47,591
51,853
54,950 60,195
72,55375,907 79,844 114,600 115,673
Total assets

247,572

Notes: 1. The Company’s fiscal year is identified by the year in which 2. Certain parts of the fiscal 1997 financial statements haveit ends. Until 1990, the Company’s fiscal year ended on
been reclassified. Prior year amounts have been restated to
September 30. Since 1991, the Company’s fiscal year has
conform with the fiscal 1997 presentation.
ended on March 31.

232,400

267,167

311,222374,790347,251

439,864

394,427

443,278

601,416

487,022

Non-Consolidated Balance Sheets (11-year summary)îÒòAåãë›éÿëŒè ï\Åi11îNä‘Åj(Millions of yen)

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
...............................................................................................................................................................................................................................................................................................................................
LIABILITIES AND SHAREHOLDERS’ EQUITY
Fiscal year

Current liabilities
Trade notes and accounts payable
23,506
26,620 38,395
47,02675,308 54,426
61,60355,007 82,446 120,036
71,248...............................................................................................................................................................................................................................................................................................................................
Short-term bank loans and commercial paper
7,181
7,719
6,600
1,508
13,606
1,468
35,457
11,226951
41,063
11,514...............................................................................................................................................................................................................................................................................................................................
Current
portionof
long-term
debt
16,282——
39,6859,000
17,919——30,000—20,000...............................................................................................................................................................................................................................................................................................................................
Accrued income taxes
2,283
1,235
3,900
8,868
21,004 12,916
15,950—5,525
23,51815...............................................................................................................................................................................................................................................................................................................................
Allowancefor
employees'
bonuses
1,836
1,216
1,204
1,455
1,514
1,425
1,580
824
1,508
2,061
482
...............................................................................................................................................................................................................................................................................................................................
Accrued expenses and other current liabilities
3,215
2,446
2,973
2,997
2,754
1,651
1,026
1,003
1,783
6,912
5,693
Total current liabilities
54,30639,238 53,075 101,541 123,188
89,807 115,618
68,061 122,214 193,591 108,953
Long-term liabilities
Long-term debt,less current portion
49,48549,485 67,404
57,71977,915 59,990
74,03873,064 59,001 112,602
97,300...............................................................................................................................................................................................................................................................................................................................
*3
Allowanceforretirement
andseverance
benefits
2,106
2,111
2,286
3,347
3,820
2,974
3,375
3,570
3,652
8,878
9,680
...............................................................................................................................................................................................................................................................................................................................
Other long-term liabilities
2,697
1,104
2,181
858
423
45
45
35
30
705
1,681
Total long-term liabilities
54,29052,701 71,871
61,924
82,158 63,009
77,45976,670 62,683 122,185 108,661
Shareholders’ equity
Common stock
29,611
29,867 29,867
29,86729,922 30,755
45,44445,531 47,163
47,212
47,213...............................................................................................................................................................................................................................................................................................................................
Additional
paid-in
capital52,68052,93752,93752,93752,99153,82368,506
68,59370,22570,27470,275...............................................................................................................................................................................................................................................................................................................................
Legal reserve
2,339
2,560
2,775
3,000
3,299
3,739
4,227
4,612
4,827
5,310
5,660
...............................................................................................................................................................................................................................................................................................................................
Retainedearnings
54,34455,096
56,64061,952
83,231
106,118
128,607
130,957
136,164
161,825
150,494...............................................................................................................................................................................................................................................................................................................................
Unrealized gains on securities
—
—
—
—
—
—
—
—
—
1,014
778
...............................................................................................................................................................................................................................................................................................................................
Treasury stock at cost
—
—
—
—
—
—
—
—
—
—
(5,014)
Total shareholders’ equity
138,976 140,461 142,220 147,757 169,444 194,435 246,787 249,695 258,380 285,638 269,408
Total liabilities and shareholders’ equity

247,572

232,400

Notes: 1. The Company’s fiscal year is identified by the year in which 3. The Company introduced retirement benefit accounting
it ends. Until 1990, the Company’s fiscal year ended onfrom the year ended March 31, 2001. As a result, theSeptember 30. Since 1991, the Company’s fiscal year has
reserve for employees’ retirement allowances (shown on theended on March 31.
Balance Sheets up to and including the year ended March
2. Certain parts of the fiscal 1997 financial statements have31, 2000) is now listed as reserve for employees' retirement
been reclassified. Prior year amounts have been restated tobenefits.
conform with the fiscal 1997 presentation.

267,167

311,222374,790347,251

439,864

394,427

443,278

601,416

487,02219

Consolidated Statement of Cash Flows(Millions of yen)

20

Fiscal year

2000
2001
2002
.............................................................................................................................................................................
Cash flow from operating activities

Fiscal year

Income (loss) before income taxes
29,68999,132(22,919).............................................................................................................................................................................
Depreciation and amortization
19,446
21,67926,294.............................................................................................................................................................................
Increase in allowance for retirement and severance benefits
2,153
18,2283,164.............................................................................................................................................................................
Increase/decrease in allowance for employees’ bonuses
3,175
3,482
(8,501).............................................................................................................................................................................
Interest expenses
1,964
2,381
1,980
.............................................................................................................................................................................
Loss on disposal of fixed assets
2,149
2,492
851
.............................................................................................................................................................................
Devaluation of investments in securities
—
1,552
1,236
.............................................................................................................................................................................
Loss from devaluation of golf memberships
1,253
35
75
.............................................................................................................................................................................
Increase/decrease in trade notes and accounts receivable(31,675)(121,669) 131,251.............................................................................................................................................................................
Increase/decrease in inventories(27,196)(53,666)
28,359.............................................................................................................................................................................
Increase/decrease in accounts payable
22,416
9,709(34,166).............................................................................................................................................................................
Increase/decrease in prepaid consumption tax(3,542)(4,859)3,901.............................................................................................................................................................................
Others
10,695
13,282(8,500)

Increase/decrease in short-term borrowings
13,022
23,927(34,796).............................................................................................................................................................................
Increase/decrease in commercial paper(10,000)
30,000(20,000).............................................................................................................................................................................
Proceeds from long-term debt
5,700
8,671
37
.............................................................................................................................................................................
Repayment of long-term debt
(2,477)(3,757)(3,018).............................................................................................................................................................................
Proceeds from issuance of bonds
19,89954,9386,095.............................................................................................................................................................................
Redemption of unsecured bonds—(30,000)—.............................................................................................................................................................................
Increase in treasury stock(454)(1,859)(1,496).............................................................................................................................................................................
Dividends paid
(2,095)(4,733)(4,030).............................................................................................................................................................................
Others
(25)
(5)
(6)

Subtotal

30,527(8,222)

123,025

Receipts from interest and dividends
280
671
351
.............................................................................................................................................................................
Interest paid
(1,923)(2,295)(1,970).............................................................................................................................................................................
Income taxes paid
(3,757)(19,596)(43,848)
Net cash provided by (used in) operating activities

25,127(29,442)

2000
2001
2002
.............................................................................................................................................................................
Cash flow from financing activities

Net cash provided by financing activities

77,558

Payment for purchase of property, plant and equipment(14,577)(39,155)(31,006).............................................................................................................................................................................
Payment for acquisition of intangible assets(4,100)(4,568)(5,390).............................................................................................................................................................................
Payment for purchase of newly consolidated subsidiaries—(18,867)—.............................................................................................................................................................................
Others
2,485
231
607
(16,192)(62,359)

77,182(57,214)

Effect of exchange rate changes on cash and cash equivalents (469)391(1,437).............................................................................................................................................................................
Net increase/decrease in cash and cash equivalents
32,036(14,228)(16,882).............................................................................................................................................................................
Cash and cash equivalents at beginning of year
46,761
79,51965,291.............................................................................................................................................................................
Cash and cash equivalents of newly consolidated subsidiaries
at beginning of year722——.............................................................................................................................................................................
Cash and cash equivalents at end of year
79,51965,291
48,409Cash flow from investing activities

Net cash used in investing activities

23,570(35,789)

Note: From fiscal 2000, TEL presents its consolidated statement ofcash flows in accordance with the format outlined by therevised Securities and Exchange Law.

STOCK INFORMATION

Stock Price Range

No. 4 Unsecured Bonds with Warrants (As of March 31, 2002)(Yen)
24,000Dateof issueJune 9, 2000..........................................................................................................................................................................................................................
Amount/ Coupon rate
¥4.5 billion / 1.59% per year..........................................................................................................................................................................................................................
Expirydate
June 8, 2006..........................................................................................................................................................................................................................
Subscription
ratio/
Exerciseprice0%/ ¥14,070..........................................................................................................................................................................................................................
Percentage
of potential shares
0.18%..........................................................................................................................................................................................................................

20,00016,00012,000No. 5 Unsecured Bonds with Warrants (As of March 31, 2002)

8,000
4,000
0
1997

1998

1999

2000

2001

2002

Year ended March 31
1997

1998

1999

2000

2001

2002

Date
of issueJune 8, 2001..........................................................................................................................................................................................................................
Amount/ Coupon rate
¥5.5 billion / 0.86% per year..........................................................................................................................................................................................................................
Expirydate
June 8, 2007..........................................................................................................................................................................................................................
Subscription
ratio / Exercise price
0% / ¥9,608..........................................................................................................................................................................................................................
Percentage
of potential shares
0.32%..........................................................................................................................................................................................................................

High
(yen)
4,200
8,670
6,630
18,00020,09010,260..........................................................................................................................................................................................................................
Low
(yen)
2,545
3,920
2,755
6,080
6,240
3,820
..........................................................................................................................................................................................................................

The Leading 10 Shareholders in TEL (As of March 31, 2002)

Note: Prices have been adjusted to reflect stock splits.
Name

Number of Shares Issued (Fiscal Year-End)
Fiscal year
1997

1998

1999

2000

2001

2002

Numberof shares issued
150,189
174,569
174,624
175,660
175,691
175,691..........................................................................................................................................................................................................................

Public Offering of Common Stock
Public Offering of Common Stock
Date of issue

Subscribedshares(thousands)

Stock Splits
Issuing
price
(yen)

June
2, 1980
4,131
1,540.........................................................................................................
July
1, 19812,000
4,730.........................................................................................................
October
16, 1982
4,000
3,050
.........................................................................................................
May
6,
1983
20
2,550
.........................................................................................................
June
23, 1984
3,000
4,015
.........................................................................................................
November
15,
1989
6,000
3,233
.........................................................................................................

Date of issue

Ratio of distribution

October
1, 1980
1:1.25.........................................................................................................
October1,1981
1:1.30.........................................................................................................
November
20, 1982
1:1.30.........................................................................................................
February
1, 1983
1:2.00.........................................................................................................
November20,
1984
1:1.20.........................................................................................................
November15, 1989
1:1.10.........................................................................................................
November15, 1990
1:1.20.........................................................................................................
May
20,
1997
1:1.10.........................................................................................................

No. 2 Unsecured Convertible Bonds (As of March 31, 2002)
Dateof issue
April 27, 1994..........................................................................................................................................................................................................................
Amount/Couponrate¥30billion/
0.9% per year..........................................................................................................................................................................................................................
Maturity
date
September 30, 2003..........................................................................................................................................................................................................................
Balance¥15,500 million..........................................................................................................................................................................................................................
Conversion
rate/
Conversion
price48.33%/ ¥3,150..........................................................................................................................................................................................................................
Percentage
of potential shares
2.8%..........................................................................................................................................................................................................................

Shares (thousands)

Percentage

Tokyo
Broadcasting System, Inc
13,586
7.73..........................................................................................................................................................................................................................
Japan Trustee Services Bank, Ltd.
(Trust Account)
10,682
6.07..........................................................................................................................................................................................................................
UFJ Bank Limited
8,786
5.00
..........................................................................................................................................................................................................................
The Mitsubishi Trust & Banking Co., Ltd. (Trust Account)
8,661
4.92
..........................................................................................................................................................................................................................
UFJ Trust Bank Limited (Trust Accounts “A”)
7,911
4.50
..........................................................................................................................................................................................................................
The Chase Manhattan Bank N.A. London
Secs
Lending Omnibus Account
6,794
3.86
..........................................................................................................................................................................................................................
The
Chase
Manhattan
Bank
N.A.
London6,237
3.55..........................................................................................................................................................................................................................
Dai-IchiMutualLife
Insurance
Co.
6,000
3.41
..........................................................................................................................................................................................................................
State
Street
Bank
And
Trust
Company
5,416
3.08..........................................................................................................................................................................................................................
Boston Safe Deposit BSDT
Treaty Clients Omnibus
4,646
2.64
Total number of shares

78,71944.76..........................................................................................................................................................................................................................

Composition of Shareholders by Category

Category

2001

2002

Number of shareholders/shares (thousands)/composition

Number of shareholders/shares (thousands)/composition

Financial institutions and securities companies
321 78,534 44.7%
232 85,089 48.4%..........................................................................................................................................................................................................................
Foreigners
611
63,66336.2%
589 59,118 33.7%..........................................................................................................................................................................................................................
Other
individual investors
41,204 17,241
9.8%
35,777 15,838
9.0%..........................................................................................................................................................................................................................
Other corporate investors
645 16,253
9.3%
518 15,646
8.9%
Total
42,781
175,691
100.0%
37,116
175,691
100.0%..........................................................................................................................................................................................................................

21

TOKYO ELECTRON LIMITEDTBS Broadcast Center
3-6, Akasaka 5-chome
Minato-ku, Tokyo 107-8481, Japan
Tel: 03-5561-7000
Fax: 03-5561-7400(URL) http://www.tel.co.jp/

Printed on 100% recycled paper.

Printed in Japan
40AG-015