Tokyo Electron Medium-term Management Plan Briefing

June 8, 2022

Transcript【Speakers】

Participants As of June 8, 2022
Tetsuo Tsuneishi

As of July 1, 2022

Corporate Director, Chairman of the Board

RetiredRepresentative Director, President & CEO

Representative Director, President & CEO, Corporate

Toshiki Kawai
Officer
Representative Director, EVP & GM

Representative Director, SEVP & GM, Corporate Officer

GM of Development & Production 1st and 4th

GM of Development & Production 1st Division,

Division, GM of Corporate Production Division

GM of Corporate Production Division

Yoshikazu

Corporate Director, EVP & GM

Corporate Director, Chairman of the Board of Directors

Nunokawa

GM of Global Business Platform Division, Finance

Sadao Sasaki

Corporate Director, SVP & GM

Corporate Officer, EVP & GM

GM of Account Sales Division

GM of Account Sales DivisionCorporate Director, SVP & GM

Corporate Officer, EVP & GM

GM of SPE Business Division

GM of SPE Business Division

SVP & GM

Corporate Officer, EVP & GM

GM of Global Sales Division

GM of Global Sales Division, GM of Field Solutions

Seisu Ikeda

Yoshinobu Mitano

Takeshi Okubo

Business Division
VP & GM, Tokyo Electron Miyagi

VP & GM

Hiroshi Kawamoto

Deputy GM of Global Business Platform Division,
GM of Finance Unit

Yohei Sato
Noritaka Yokomori

ATSBU GMATSBU GM

Deputy GM of Corporate Innovation Division, DX

Deputy GM of Corporate Innovation Division, DX

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Moderator: Koichi Yatsuda - VP, IR Department
Now, it’s time for us to start the Tokyo Electron Medium-Term Management Plan Briefing. Thank you verymuch for your participation today despite your busy schedule. I am Koichi Yatsuda of the IR Department,
acting as a moderator of today’s session.
This will be our sixth Medium-term Management Plan briefing, but the first in three years. This year, wehave generated a new Medium-term Management Plan, and each person in charge will explain thecontents of the plan, including its strategies.
Prior to the presentations, let me explain the flow of today's briefing. For the agenda and the participantsfrom Tokyo Electron, please refer to the presentation materials for this briefing posted on our website.
You will hear a 2 hour and 15-minute presentation with a 5-minute break in between. After allpresentations, we will have a question and answer session. Questions will be answered by today's
participants.
This briefing is being delivered simultaneously in two languages, Japanese and English, using two Zoom
channels. However, all the presentations will be given in Japanese with English subtitles. As we recently
announced via email, if you wish to listen to audio only, you may do so by phone. But, if you wish to view
English subtitles of the presentations or ask questions, please use the app on your PC or mobile device.
In addition, since this briefing is intended for institutional investors and analysts, we will take questions
from institutional investors and analysts only. We will post the video of this briefing in Japanese andEnglish on our website within a couple of days, so please access our website if necessary.
First, the CEO, Tony Kawai, will give a presentation on “The New Medium-term Management Plan”.

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The New Medium-term Management Plan
Toshiki Kawai - Representative Director, President & CEO
Good afternoon. I am Tony Kawai of Tokyo Electron Limited. Thank you for joining us today at the Mediumterm Management Plan briefing.
As the importance of semiconductors rise due to the development of IC Technology, the Semiconductor
Production Equipment (SPE) market is growing to the next stage. I will review our activities andachievements, then explain the newly generated Medium-term Management Plan to realize our growthpotential.
Now, I would like to go on to the presentation.
Agenda: Slide 5
Here is the agenda. To highlight some of our activities, I will first go over the Medium-term Management
Plan that targeted FY2024 and our major achievements. This will be followed by an explanation of thebusiness environment and new Medium-term Management Plan.
FY’22 Financial Highlights: Slide 6
This shows the highlights of FY2022, reviewed in the financial announcement on May 12 th. As businessin the segments we focused on progressed our strategy, we reached new records by generating net salesof 2 trillion, 3.8 billion yen, gross profit margin of 45.5%, operating income of 599.2 billion yen, andoperating margin of 29.9%. Also, ROE was 37.2%, which also significantly surpassed the Medium-termManagement Goal of 30% or more.
Progress on the Medium-term Management Plan: Slide 7
As a result, we have achieved the Medium-term Management Plan financial model that was announced
in 2019, setting the operating margin and ROE target based on net sales two years ahead of the original
timeline.
Major Achievements and Initiatives on the Medium-term Management Plan: Slide 8This is due to the technical experience we have nurtured over the years, solid trust from our customers,
and because our employees were able to demonstrate their challenging spirit. In 2021, we experienced
approximately +60% year-on-year growth, greatly outperforming the WFE growth of +42%. At the sametime, we grew our share in the WFE market. By creating high value-added, one-of-a-kind products, we
succeeded in increasing market share and expanding SAM, contributing to these results to build a greater
future. Another large factor is that we have continued growth investments, with over 40 billion yen spent
on R&D expenses, every year for the past 3 years. All of these results were achieved because of
everyone’s support. Thank you very much for all of your support.
Agenda: Slide 9
Next, I will explain the business environment, followed by the New Medium-term Management Planaiming for further growth and increasing corporate value.
Spread of IoT ∙ AI ∙ 5G and Accelerating the Digital Shift: Slide 10
Now, digitalization in the world is progressing with the spread of IoT, AI, 5G, and so on. But this is just the
beginning. The world is currently pushing firmly ahead with the implementation of ICT and DX, as well as
taking action to realize a carbon-free society in order to build a strong and resilient society in which
economic activities do not stop under any circumstances.
World Data Traffic: Slide 11
Reflecting on the past, the 1990s were called computer-centric, in which personal computers were driving
the market. We then entered the mobile-centric 2000s, when smartphones drove the market. Today, theworld has become data-centric, and world data traffic is expected to increase at an annual rate of 26%
and will be 10 times the current level by 2030.
In addition to Bits, which refers to conventional computers such as PCs and servers, we expect to see
further advances in computing, such as Qubits, which refers to quantum computing, and Neuron, whichmimics the movement of the human brain.
As a result, if data volume continues to increase at an annual rate of 26% after 2030, it is expected to be
100 times the current level by 2040.
Outlook for the Semiconductor Market: Slide 12
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With this accelerating transition to a data-driven society, semiconductors, which support the foundationof this transition, are becoming even more important. In 2021, the semiconductor market exceeded US$500 billion for the first time. In 2030, the semiconductor market is expected to more than double its
current size to over US $1.35 trillion, and is expected to continue to expand further as demand grows dueto the synergistic effects of "products and value," and the emergence of various products and services in
conjunction with the development of ICT.
WFE Market: Slide 13
Accordingly, the WFE market was approximately US $90 billion in 2021. In 2022, the market is expected
to expand by nearly 20% due to further growth in demand for devices for data centers. We expect themarket to grow further in the future due to the evolution of ICT, DX, decarbonization, electric vehicles,
autonomous driving, and post-5G.
The New Medium-term Management Plan: Slide 14
During this time of such great growth opportunities, as shown here, we have set new financial targets ofover 3 trillion yen in net sales, over 35% in operating margin, and over 30% in ROE by FY'27 as the new
Medium-term Management Plan aiming for world-class profits. As a manufacturer, we will strive tooutperform the market growth and further develop the company while aiming for an operating profit ofover 1 trillion yen.
Material Issues: Slide 15
In order to achieve the targets of the new Medium-term Management Plan, we will further refine ourmaterial issues, which consist of four items. We will strive to build "product competitiveness" bycontinuously creating next-generation products with high added value, "customer responsiveness" as thesole strategic partner based on relationships of absolute trust with customers, "higher productivity" topursue operational efficiency, and "a solid management foundation" to support our business activities.
Continue to Invest Aggressively on R&D: Slide 16
In particular, we will aggressively invest in R&D to create next-generation products that have high added
value and that the world has never seen. We have invested approximately 600 billion yen in R&D overthe past five years, and plan to invest more than 1 trillion yen over the next five years starting from FY2023.
Further Increasing Corporate Value: Slide 17
So far, as shown on the left side of this slide, I have discussed key measures to achieve our new financial
goals of world-class sales and operating margin and ROE.
We will also strengthen our sustainability initiatives, including safety, quality, compliance, engagement,
and risk management and security, as shown on the right side of this slide. We are committed to "offensive
and offensive management," with our defenses as our strengths.
Won the Grand Prize Company in the Corporate Governance of the Year® 2021: Slide 18
In January of this year, we were awarded the Grand Prize Company in the "Corporate Governance of theYear 2021" competition sponsored by the Japan Association of Corporate Directors. As shown in the
feedback on the right side, our aggressive stance on ESG, along with our aggressive stance to achieve
our financial targets, were highly evaluated.
TEL's Corporate Principles: Slide 19
In response to these growing social expectations and evaluations of our company, we have redefined ourCorporate Philosophy, which consists of our Mission, Vision, and Values.
Our Corporate Philosophy is our Mission, and it expresses the purpose of TEL’s existence and its mission
in society.
The Vision represents the key priorities for realizing the Corporate Philosophy. We have also sublimatedthe attitudes, codes of conduct, and values that each and every employee value into "TEL Values," which
form the basis of all of our activities.
We have now formulated a new Vision for the year 2030.
New Vision: Slide 20
The new Vision is shown here in bold: "A company filled with dreams and vitality that contributes totechnological innovation in semiconductors.”
The three sentences below explain what we hope to achieve in this one line.
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Pursuing technological innovations in semiconductors that support the sustainable developmentof the world.
➢ Realizing medium- to long-term profit expansion and continuous enhancement of corporate
value by leveraging our expertise to continuously create high value-added, leading-edge
equipment and technical services.
➢ Striving to realize our Vision through engagement with our stakeholders along with the conceptthat “our corporate growth is enabled by people, and our employees both create and fulfill
company values”.
In addition, our corporate message, "Technology Enabling Life," expresses our Corporate Philosophy.
TSV : TEL’s Shared Value (TEL’s CSV): Slide 21
This new Vision is based on the concept of CSV: Creating Shared Value.
CSV is the concept of creating social and economic value by leveraging corporate expertise to solve
social issues, thereby enhancing corporate value and achieving sustainable growth.
As semiconductors continue to grow in importance as an indispensable element in the "development ofa dream-inspiring society," we will continue to develop our business activities based on the concept of
TSV: TEL's Shared Value, which is to contribute to technological innovation in semiconductors.
Our Approaches to Social Issues: Slide 22
This slide shows how we will create social value through our business activities. Today, there are manysocial issues that need to be resolved for the sustainable development of the world. These include
disparities in education, health, and medical care; urbanization and associated transportation issues;
global warming and extreme weather. Various technologies and solutions are expected to solve thesesocial issues. And in semiconductors which are indispensable for the technological evolution, greater
capacity, higher speed, higher reliability, and lower power consumption are being demanded even more.
By pursuing technological innovation in semiconductors, we will strive to create social value as well as
short-, medium-, and long-term profits and continuous enhancement of corporate value.
Vision & New Medium-term Management Plan: Slide 23
This is a summary of what I have explained today. We will work on the goals to realize our Vision for 2030
and aim to achieve the Medium-term Management Plan as the halfway point of the Vision.
Approaches to Sustainability: Slide 24
This is the E-COMPASS initiative for the entire supply chain, which we have already announced. We areworking on this from the three main perspectives of:➢ contributing to higher performance and lower power consumption of semiconductors;➢ improving environmental performance of our semiconductor production equipment; and➢ improving green performance of our own business activities.
Laser Edge Trimming: Ulucus™ L (Released on June 8): Slide 25
One of the E-COMPASS initiatives is our new product, “Ulucus L,” a laser edge trimming system that was
released today on June 8. Ulucus L combines high environmental and process performance with highprecision laser processing control that reduces DIW (deionized water) consumption by more than 70%
compared to conventional methods, according to our calculations. We will continue to contribute to thetechnological innovation of semiconductors by creating unique, one-of-a-kind equipment that only we cancreate.
Medium-term Environmental Targets for 2030: Slide 26
In addition, regarding the Medium-term Environmental Targets for 2030, we set the following goals:
For products, reducing CO2 emissions per wafer by 30%.
At our facilities, reducing total CO2 emissions by 70% and increasing the ratio of renewable energy use
to 100%.
Along with these goals, we had previously announced our long-term goals for 2050, but in order to further
strengthen our environmental activities, we have now revised them to realize net zero.
Net Zero: Slide 27
With respect to net zero emissions, we will work to achieve net zero for Scopes 1 and 2 by 2040, and for
Scope 3 by 2050. Mr. Sadao Sasaki, who will take the stage later, will explain the details.
➢

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Safety First: Slide 28
As a manufacturer, "safety" is of utmost importance in our business activities. In terms of TCIR, whichindicates the number of workplace incidents per 200,000 work hours, we have maintained a world-classsafety level of less than 0.5, and in FY2022, the rate was 0.3. We will aim to reduce the rate to 0.1 or lessin FY2027 by further promoting safety awareness and continuous improvement activities.
No title: Slide 29
It is our employees who are involved in all of our business activities and realize sustainable growth. Basedon the belief that "Our corporate growth is enabled by people, and our employees both create and fulfill
company values,” we will continue to promote initiatives around the key themes of engagement, career,retention, work-life balance, and diversity and inclusion based on the TEL Values, our code of conduct.
Key Indicators for Continuous Corporate Value Enhancement: Slide 30
So far, I have explained our environmental, safety, employee engagement, and other initiatives that are
essential to our sustainable growth. We have established key indicators for the continuous enhancementof our corporate value. We plan to include this information in our Integrated Report to be issued in August2022. We will share this information with all our stakeholders and promote our activities.
Technology Enabling Life: Slide 31
As a leading semiconductor manufacturing equipment maker, we have an increasingly important role toplay in the further development of society as the digital shift accelerates. We are committed to achieving
the goals of our Medium-term Management Plan, which I explained today, by creating high value-added,
leading-edge equipment and providing reliable services, and by earning the trust of our customers andother stakeholders based on the provision of such equipment and services.
That concludes my presentation. Thank you very much.

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Review of the Previous Medium-term Management Plan and Financial Strategy for the
New Medium-term Management Plan
Hiroshi Kawamoto - Tokyo Electron Miyagi Limited VP & GM, BS Division
Hello everyone. My name is Hiroshi Kawamoto, and I will be in charge of the Finance Unit starting July
1. Currently, I supervise the corporate division at Tokyo Electron Miyagi Ltd., which is a TEL manufacturing
facility. Previously I was in charge of the finance and corporate strategy departments at Tokyo ElectronLtd. I am sure that I will have more opportunities to meet you all in the future, and I look forward to it.
Anyway, today I would like to talk about "the review of the previous Medium-term Management Plan andthe financial strategy of the new Medium-term Management Plan.
Overview: Slide 33
Here is the agenda. First, I would like to review the previous Medium-term Management Plan. In that
context, I will discuss our performance and results of our growth investment over the past five years. Fora slightly longer time span, I will also look back on our sales and operating income, market capitalization,and net assets in light of the changing trends in the semiconductor production equipment market in which
we participate. After that, I will discuss our financial strategy for achieving our new Medium-term
management plan. Finally, I will discuss our shareholder return policy.
Review of the Previous Medium-term Management Plan: Slide 34
Here is the comparison of the financial model for the previous Medium-term Management Plan with thefull-year results for the previous fiscal year that ended on March 31, 2022.
As you can see, net sales reached 2 trillion yen in FY2022, and we were able to achieve the Mediumterm Management Plan, which was formulated in 2019, two years ahead of the original schedule.
We believe that the following three factors contributed to our achievement two years ahead of the originalschedule.
First of all, we were able to execute our business strategy in a flexible manner. Our basic strategy
continues to be focusing on areas where we can leverage our strengths and provide high value-added
products and services, and although we were subject to travel restrictions from the beginning of 2020
due to the spread of COVID-19, we were able to conduct sales activities, startup equipment, and provide
services without delay, through close communication with our local subsidiaries. In addition, tostrengthening our local response capabilities, we increased the number of expatriates from Japan, andworked to improve the skills of our local engineers.
Secondly, we continued growth investment even during periods of market adjustment. In the fiscal yearthat ended on March 31, 2020, our sales decreased due to the adjustment of the semiconductor
production equipment market. However, in preparation for the market growth we anticipated in thefollowing fiscal year and beyond, we increased our R&D expenses and CAPEX compared to the previous
fiscal year. As a result, we acquired new PORs and had sufficient production capacity, which enabled us
to increase our market share in all our semiconductor production equipment in CY2021.
Finally, we must not forget, our close communication and collaboration with our partners. Despite theworldwide component shortage in CY2021, the WFE market grew significantly; in fact, it grew by 42%.
During this period, we worked with our partners to increase production and facilitate the procurement ofcomponents, and, as a result, our performance significantly outperformed the market growth.
Performance of Growth Investments Made Over the Past Five Years: Slide 35
Next, I would like to talk about our growth investment over the past five years.
First, let me start with our investment in production capacity expansion. The production capacity of the
Miyagi plant has doubled due to the new logistics building which started operations in February 2018 as
well as the start of the automated warehouse in June 2018. The production capacity has doubled in the
Tohoku plant and increased 1.5 times in the Yamanashi plant through the operations of the productionbuildings.
Next, I will discuss other growth investment, such as R&D expenses. In November 2018, Developing
Building No.2 in the Miyagi plant began operations. In November 2020, we opened the TEL Digital Design
Square in Sapporo to strengthen our DX promotion activities. Furthermore, in October 2021, the Miyagi
Technology Innovation Center began operations to innovate production technology and collaborate with
suppliers.
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TranscriptThus, we have made aggressive growth investment over the past five years, which we believe has
contributed significantly to production expansion, acquisition of PORs, R&D expenses, and productivity
improvements in operations.
Trends in Net Sales and Operating Income: Slide 36
Here are the changes in sales, operating income, and operating margin since the fiscal year that ended
in March 1991. One thing I would like to mention here is that until the early 2000s, the so-called silicon
cycle caused an imbalance between supply and demand in semiconductor capital investment. However,since then the silicon cycle has been reduced and the supply-demand balance has been relatively stable.
The financial crisis and the European debt crisis that occurred between 2007 and 2009 triggered amacroeconomic slowdown that restrained semiconductor manufacturers' CAPEX but since then there
has been no significant decline in semiconductor capital investment, and our net sales and operating
income have increased steadily. In the fiscal year that ended on March 31, 2020, semiconductor
manufacturers adjusted their CAPEX slightly. Our analysis indicates that this was not a halt in investment
to increase production capacity due to over-investment, but rather an adjustment commensurate withdemand. In this environment, as I mentioned earlier, we have aggressively invested in anticipation of
future demand. As a result, our R&D expenses for the past five years totaled more than 600 billion yen.
Because of this, in the previous fiscal year that ended on March 31, 2022, we were able to achieve our
Medium-term Management Plan, which was formulated in 2019, two years ahead of the original schedule.
Trends in TEL's Market Capitalization and Total Net Assets: Slide 37
The graph here shows our market capitalization and net assets since the beginning of 2010.
We understand that our aggressive growth investment in recent years, such as R&D and production
capacity expansion, as well as non-financial values that do not appear on the balance sheet such as
securing talented human resources and collaboration with customers and suppliers for next generation
technologies, were evaluated by the stock market. This resulted in the significant growth of market
capitalization compared to net assets. We intend to continue growth investment, aiming to increase bothshareholder value and corporate value.
That brings me to the end of my review on the past. On the next slide I will discuss our financial strategy
for achieving the new Medium-term Management Plan.
Financial Strategy to Achieve the New Medium-term Management Plan: Slide 38
The graph on the left shows the financial model that Mr. Kawai, the CEO explained earlier. From thecurrent fiscal year ending on March 31, 2023, we need to increase net sales by more than 650 billion yen
and operating income margin by more than 4.5 %. Let me list the four financial strategies necessary toachieve the new financial model and to "continuously create high value-added leading-edge equipment
and technical services" as stated in our new vision.
The first is to increase production capacity in anticipation of market growth. In the previous Medium-termManagement Plan, we were able to increase production capacity effectively. During the current Mediumterm Management Plan, we will continue to enhance production capacity at the appropriate time.
Next is the allocation of R&D expenses, in which we plan to invest more than 1 trillion yen over the next
five years. I think this could be called development portfolio management. We will discuss and makedecisions at the Corporate Officers’ Meeting and the Quarterly Review Meeting to optimize the allocationof R&D expenses, taking into consideration the value to be created by development activities.
We anticipate that CAPEX to increase production capacity and R&D capabilities will amount to more than¥400 billion over the next five years. In addition, the promotion of DX has recently become an importantfactor in increasing corporate profits and productivity. As I mentioned earlier, we have also opened a basein Sapporo to promote DX. We have identified the following three areas as the major items to be improved:Firstly, profitability improvement of Advanced Field Solutions. This has two benefits; it contributes toincreasing the added value of the equipment itself. It also optimizes equipment utilization rates andproduction yields at customer sites. Secondly, the efficiency of R&D activities through Materials
Informatics, etc. Finally, the efficiency of sales activities and administrative operations; in other words,
the reduction of the ratio of SG&A expenses to sales. We will consider the investment ratio for DX
promotion while taking economic effects into consideration. Lastly, we will optimize fixed costs inconsideration of business scale and activities. The semiconductor production equipment market in which
we participate is a very fast-growing and rapidly changing market. Focusing on short-term profits and8 / 29Tokyo Electron Medium-term Management Plan Briefing

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squeezing fixed costs may prevent operations from functioning properly. So instead, we will optimize fixed
costs from a mid-term perspective.
Shareholder Return Policy: Slide 39
Finally, our shareholder return policy. In the new Medium-term Management Plan, there is no change
from the previous Medium-term Plan. We will pay a dividend of 50% of net income attributable to ownersof parent. In addition, we will flexibly consider share buybacks.
Total Returns with Respect to FCF: Slide 40
To make it easier to compare our shareholder return policy with that of our overseas peers, we havecalculated the total return ratio on free cash flow from the fiscal year that ended on March 31, 2016 when
we increased the dividend payout ratio to 50%. Thus, the total return ratio on a free cash flow basis is
generally above 70%, which is equal to or better than that of our overseas peers. We will continue toreturn profits to our shareholders through growth.
Summary: Slide 41
This is the summary of my presentation. I’m not going to do an in-depth summary of all of the material
we have covered today. Instead, please take a look at the final summary slide, which has all of the key
points on it. Thank you very much.

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Procurement and Manufacturing Strategy
Sadao Sasaki - Representative Director, EVP & GM, Development & Production, Corporate
Production Division
Hello everyone. My name is Sadao Sasaki and I am in charge of Tokyo Electron's Development &Production Division.
We would like to sincerely thank all of our stakeholders for their kind support: Slide 43
First of all, I would like to thank all of our stakeholders for your continued support and patronage. Today,
I would like to explain our procurement and production innovations as well as our major efforts to reduce
environmental impact as the semiconductor industry becomes increasingly important due to theaccelerating shift toward a digital data-driven society.
Major Domestic Production Sites: Slide 44
We have four major manufacturing sites in Japan located in Iwate, Miyagi, Yamanashi, and Kumamoto
prefectures, and we continue to provide high-quality semiconductor production equipment tosemiconductor manufacturers around the world on time. In recent years, due to the continuous expansionof the semiconductor market, all of our plants have been operating at full capacity, and we are currently
working to build a system to increase production throughout our entire supply chain through various
measures to improve productivity.
Need for Production Innovation: Slide 45
Let me explain our production innovation efforts in more detail.
Since last year, we have faced three major challenges in the areas of procurement and production. The
first is to increase production capacity. The second is a shortage of personnel to start up the equipment.
The third is a component shortage. Among these, the shortage of local start-up personnel due to overseas
travel restrictions during the pandemic was a serious issue. We have responded in the last two years by
accelerating the localization of start-up personnel and improving remote start-up capabilities.
Continuous Production Innovation in Pursuit of Safety, High Quality and High Reliability: Slide 46
These are the main themes of our production innovation. To drastically improve this issue, we have beendeveloping one-touch start-up functions for equipment for several years. It usually takes about 3 weeks
to 3 months for start-up depending on the type of equipment. We have been proactively reducing the time.
As shown in the bar chart, the current 3,000 hours of equipment start-up time can be reduced to 1,500
hours, a reduction of over 50％, through (1) the autonomous equipment (equipped with AI), (2) automatic
setup function, (3) automation of inspections, etc. Currently, several thousand engineers are working
around the world to start up equipment. This one-touch start-up function is expected to significantly
reduce man-hours, increase efficiency, improve start-up quality, reduce the number of accidents, andcontribute to a more appropriate work-life balance for those involved.
Efforts to Utilize TEL PLM-DX and Improve Productivity and Efficiency: Slide 47
Next, I will explain our DX initiatives. TEL is currently promoting company-wide activities to centralize
manufacturing BOM/master information from development, design, and production to start-up of theequipment. This will improve the efficiency of the production line, significantly shorten the time fromdevelopment to mass production of new products, increase MRP (Material Resource Planning)processing capacity up to 10 times, maximize production capacity and production leveling, and we plan
to gradually double our current production capacity within three years.
Build a Sustainable Supply Chain: Slide 48
There is one more procurement challenge. Pandemic and geopolitical risks have caused supply chain
disruptions, and establishing a sustainable supply chain is one of our key management issues. Based onfair and transparent relationships and solid trust with our suppliers, we hold TEL Partners Day for our
primary supplier meetings as well as production update briefings twice a year at all of our plants. Morethan 300 suppliers participate in these meetings. We conduct an annual CSR/BCP assessment based on
the industry code of conduct. From this year, we have added environment-related items to theassessment survey items to commend and recognize the results of our environmental impact reduction
activities.
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Procurement BCP and Proactive Procurement Activities: Slide 49
In addition, the timely supply of semiconductor production equipment is very important to deal with theshortage of semiconductors. We aim to build a strong and reliable supply chain through three main
proactive procurement activities. We aim to procure parts in advance for a period of two years, and total
inventory volume will be reduced while ensuring just-in-case inventories. We are working closely with ourcustomers to secure the supply of semiconductors for our equipment in order to deal with thesemiconductor shortage, and we are making sincere efforts to secure unallocated production capacity
while promoting the visualization and streamlining of commercial distribution. With regard to geopoliticalrisks, we are promoting the multi-sourcing of parts production countries. We appreciate your continued
understanding and cooperation.
Efforts toward Reducing Environmental Impacts: Slide 50
To change topic, I would like to explain our efforts to reduce environmental impact, which have been
attracting more and more attention in the world recently.
Responsibilities as an Industry-Leading Company: Slide 51
We recognize that it is very important responsibility to work toward solutions to the problems of global
environmental impact. Last year, we established E-COMPASS, a supply chain initiative focused on theenvironment, with the aim of achieving a balance between digital and green. Through the collaboration
with our customers, semiconductor manufacturers, and our partners through our business activities, wehope to powerfully drive the entire industry toward the realization of a carbon-free society.
Milestones for CO2 Emission Reductions toward Net Zero Emissions: Slide 52
We aim to achieve "Net zero" emissions by 2050. As for our own emission reductions in Scope 1 & 2, wehave introduced a rate of 100% renewable energy usage at all of our global sites this year, aiming toachieve "Net zero" emissions by 2040. As for emission reductions outside of our Group under Scope 3,
we will push forward with technological development to make our products more energy efficient, andaim to reduce CO2 emissions from the use of products by 30% and GHG use by 20% in 2030 compared
to 2018, and a further 50% reduction in emissions from the use of products in 2040. We have alreadybegun working with several semiconductor manufacturers to contribute to the development oftechnologies for higher performance and lower power consumption of semiconductors, and to more
actively promote energy saving in facility equipment and process development using GHG alternative
gases. These environmental technologies will also be introduced in legacy semiconductor productionlines.
E-COMPASS Activities Towards Scopes 1, 2 and 3: Slide 53
This page summarizes the main activities in Scopes 1/2/3. In the first, supply logistics, we are promoting
a modal shift, and also aim to eventually adopt electric or H2-powered heavy-duty trucks and ships. I think
it is important to develop practical applications. I have high expectations for this. Second is the trends ininternational environmental laws and regulations, with the number of laws and regulations rapidly
increasing each year. We are working to minimize business risks by identifying future trends as early as
possible and responding proactively. Furthermore, we will promote environmentally hazardous
substance-free equipment and provide environmentally friendly equipment. We are also building an
information sharing system for parts containing banned substances, which will be useful to everyone in
the industry. In the third area of development of equipment with proactive environmental performance,
we will share a 10-year roadmap for environmental technology and specify environmental performancethat reduces environmental impact in product specifications. We also plan to take the opportunity to share
the results of these activities after next year's TEL Partners Day.
E-COMPASS Activities Towards Scope 3: Slide 54
Finally, in Scope 3 activities to reduce CO2 emissions from the use of products, we have established 10
themes for equipment technologies and 7 priority environmental fields. We will accelerate joint
development throughout the entire supply chain and invest more aggressively in environmental
development. We are also aiming to reduce environmental impact to "Net zero" and to contribute tosociety as an environmentally advanced company by working together with the entire industry to solve
environmental technology issues.
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Summary：Slide 55
I have now explained our pursuit of production innovation and our main efforts to reduce environmental
impact. Thank you very much.

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SPE Business Strategy
Yoshinobu Mitano - Corporate Director, Senior Vice President and General Manager, SPE
Business Division
Hello everyone. My name is Yoshinobu Mitano and I am in charge of SPE business.
Today, I would like to talk about the strategy of our SPE business.
Overview: Slide 57
Here is an overview of today's presentation. First of all, I will discuss the WFE market and technologicalrequirements by application. Next, I will explain our technology roadmap, focusing on areas relevant to
the new Medium-term Management Plan period. After that, I will discuss the target and opportunities of
the SPE business, followed by our development efforts. I will summarize the presentation at the end.
WFE Market and Technological Requirements by Application: Slide 58
First, let me explain the WFE market and technological requirements by application. The 2021 WFE
market was about $92B and is expected to exceed $100B in 2022. We expect the WFE market to groweven more toward 2026. In terms of technology, further scaling and higher layer counts for logic/foundry,
NAND and DRAM will continue to be required to reduce manufacturing costs, lower power consumption
and enhance processing performance.
Next, I will discuss the technology roadmap for each application. Dr. Sekiguchi explained the technology
roadmap for each device at our IR Day last year. Today, I will focus on the technological changes that will
occur during the period of the new Medium-term Management Plan.
Logic Technology Roadmap: Slide 59
Here is the technology roadmap for logic. 3nm node N3 for logic will begin production this year, 2022,
and further scaling will continue thereafter, with the 1.4nm node N1.4 expected to be in mass production
by 2026. In 2030, scaling is expected to progress to the 0.7nm node. The transistor structure is also
expected to shift from the Fin structure to the GAA structure and then to the CFET structure. Thus, in
logic, scaling will progress with structural changes. To achieve this, various new technologies andstructures will be introduced, such as backside PDN and CFET, as well as EUV, which is currently being
adopted for scaling. Although the CFET structure is not expected to be introduced during the period of
the new Medium-term Management Plan, we believe that this period will be important preparatory time
for the adoption of our technology for CFET.
NAND Technology Roadmap: Slide 60
Next, here is the technology roadmap for NAND. 160 to 190 layer node is the major production node for
NAND in 2022. By 2026, the number of layers is expected to increase to 350 to 400 layers.
Furthermore, the number of layers is expected to exceed 500 by 2030.
To achieve this, a variety of technological changes are expected, including an increase in the number oftiers, changes in WL metal materials, changes in the integration of peripheral circuits, and higher
integration per unit area by bonding wafers together.
The current roadmap assumes that many of these changes will occur during this new Medium-termManagement Plan period.
DRAM Technology Roadmap: Slide 61
Finally, I would like to talk about the technology roadmap for DRAM. Further 2D (two-dimensional) scalingof DRAM will continue beyond 2022. In this 2D scaling, capacitor manufacturing processes are
particularly critical, and various new technologies will be adopted in etch, deposition and cleaning.
While 2D scaling will continue until around 2026, we expect a shift to 3D DRAM with a 3D structure after
2027. In 3D DRAM, scaling will be driven by vertical stacking instead of 2D scaling driven by lithography,
similar to the transition from 2D to 3D NAND. This is expected to result in increased film deposition andetch intensity, among other things. As with logic, the adoption of new structures will not occur during the
new Medium-term Management Plan period, but the peak of development for 3D DRAM is expected tocome during the new Medium-term Management Plan period.
As shown above, logic, NAND and DRAM continue to require various technological innovations. In orderto capture these technological changes as business opportunities for our company, we are working on
the development of new equipment and processes.
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SPE Segment Sales Target and Business Opportunities: Slide 62
Next, I will discuss the business environment in the SPE business. In logic/foundry, patterning is
becoming complex and the co-optimization between unit processes is increasingly required. High-NA
EUV lithography is expected to be applied in volume production to achieve further scaling. In addition, as
explained in the previous slide, transistors will shift from the Fin structure to the GAA structure, andbackside PDN will be adopted for the interconnects layer. We have wafer bonding equipment which willcontribute to the realization of backside PDN.
As for NAND, the stacking of 3D NAND is progressing further, and the number of layers will increase to300, then 500 in the future. This will require high aspect ratio etch, high productivity sacrificial film removal,
and atomic-level deposition technology for 3D structures. We have etch systems and ALD deposition
systems to meet these technological requirements. For DRAM, the technology to suppress RC delay inwiring and capacitor formation technology for further 2D scaling are required. Many of our etch, depositionand cleaning systems have already been adopted for DRAM capacitor formation. We will provide new
products and solutions to achieve further scaling.
As for SPE new equipment sales, they were 1,499.0 billion yen in FY2022. For FY2027, the final year of
our new Medium-term Management Plan, we aim to outperform the market growth and achieve sales ofmore than 2,300.0 billion yen.
Development Efforts: Slide 63
Next, I will explain our development efforts to capture the business opportunities introduced so far.
As the technological challenges of scaling increases, in addition to the mass production generation of N,
development and evaluation of four generations - N+1, N+2, N+3 and N+4 - are simultaneously underway
in leading-edge logic and memory. In addition, each generation undergoes more than two years ofdevelopment and evaluation at the customers' fab before going into mass production. In order to continue
such development and evaluation with semiconductor manufacturers, high technology development
capabilities, engineering resources, and a strong financial base are required for semiconductor
production equipment makers. We work with our customers to align long-term technology roadmaps anddevelop and evaluate technologies up to four generations into the future with our customers. In theevaluation process, we demonstrate equipment and process performance on the customer's structured
wafer in the customer's environment at an early stage. In this way, we reliably create high value-added
products and win POR.
Strengthen R&D Capabilities: Slide 64
In order to tackle the kind of development I mentioned earlier, it is essential that we strengthen ourdevelopment capabilities. We have further strengthened our development capabilities in order to promote
the simultaneous 4-generation developments and evaluations for the leading-edge memory andlogic/foundry. In the past two years, we have established the Miyagi Technology Innovation Center andthe TEL Digital Design Square. In addition to that, new research and development buildings are planned
to start operations between 2023 and 2025: the R&D building in Yamanashi for deposition systems, gas
chemical etch systems, and corporate R&D; the R&D building in Kumamoto for coater/developer andcleaning systems; and the R&D building in Miyagi for etch systems. We will further strengthen ourdevelopment capabilities to create high value-added products that contribute to technological innovationin semiconductors.
Increase in New Product Sales Composition Ratio: Slide 65
In this way, we will strengthen our development capabilities and increase the sales composition of newhigh value-added products. The graph here shows the outlook for the progress of new product penetration.
The graph uses deposition systems for leading-edge logic/foundry as an example. We plan to increase
the sales composition of new products every year. This increase in the sales composition of new products
will lead to a steady increase in sales, profit and market share.
Increase Environmental Performance: Slide 66
In addition, environmental performance is becoming an increasingly important aspect of equipment
performance. We are developing equipment with the concept that environmental performance =equipment performance. The example shown here is a cleaning system. Compared to existing products,
the new product has significantly improved environmental performance.
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Increase Efficiency of Equipment Start-up: Slide 67
Finally, I would like to discuss our efforts to improve the efficiency of our equipment start-up process.
We are currently experiencing a significant increase in new equipment sales, and with that increase
comes an ever-increasing number of different resources needed, including field engineers, for equipment
start-up. We are not only increasing our resources, but also working to make them more efficient.
Specifically, we are optimizing inspection items during equipment start-up, automating inspections,
expanding online support, and utilizing DX network tools, automatic tools, and other tools. We are working
to further enhance customer satisfaction and productivity by significantly increasing the efficiency ofequipment start-up.
Summary: Slide 68
Here is a summary. As technology continues to evolve in both logic and memory, our business
opportunities will continue to expand. In such markets, we will create added value by co-optimizing ourbroad product portfolio and providing solutions. In addition, we will conduct simultaneous 4-generation
developments and evaluations with our customers to develop higher value-added products and ensure
POR acquisition. To this end, we will further expand and strengthen our development capabilities. At thesame time, we will utilize DX and AI to shorten equipment start-up time, thereby improving customer
satisfaction, increasing productivity, and effectively utilizing resources.
This concludes my presentation. Thank you very much.

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Backend Business Strategy
Activities for the Development of Wafer Bonding Process
Yohei Sato - ATS BUGM
Hello everyone. My name is Yohei Sato and I am in charge of the ATS Business Unit. Today, I would liketo present our back-end business strategy.
The main purpose of back-end technology in semiconductor manufacturing was originally to protect thephysical and electrical properties of the semiconductor chip itself and to interconnect chips. Also, thefunction of "Fan Out," as it is called, is required to reduce the electrode pitch for chip connection. On theother hand, the 3D bonding technology I am introducing today is expected to further improve and evolve
the performance of the chip itself and the system as a whole. We will provide an overview of thistechnology and our contribution.
Semiconductor Technology Node and Bump Pitch: Slide 70
This slide shows a log plot for technology nodes in the semiconductor process and electrode pitch inpackaging technology. The vertical axis shows the pitch and the horizontal axis shows the year. As you
know, technology nodes in the semiconductor process have been scaling down in accordance with
Moore's Law. On the other hand, although there are various packaging technologies available, the pitchof electrodes in mounting has been shrinking very slowly because it assumes connection to substrates.
TSV for silicon-to-silicon connection has been introduced, but it uses micro-bump connection, which
has limitations in pitch reduction.
Semiconductor Technology Node and Bump Pitch: Slide 71
In contrast, the introduction of bonding technology, which I am introducing today, significantly reduces
the pitch of device electrode connections and enables interconnection of devices with ultra-multiple
electrodes. In addition, the introduction of bonding technology in the semiconductor manufacturing
process itself is also advancing development to improve device performance.
Application of Wafer Bonding: Slide 72
This is a typical example where the bonding technology is being considered. The CMOS image sensor
on the left is already utilizes the bonding technology in mass production. For full-scale mass production,
the second from the left is 3D NAND, in which memory cells and peripheral circuits are bonded
together. In Logic, utilization of the bonding technology is under development for backside PDN(backside wiring). The one on the far right is called “die disaggregation”, which is an advanced
integration approach in which each IP block of the SoC is manufactured using an optimal process in the
different wafers, and then made into individual chips called “chiplets”. Since the SoC is manufactured indifferent wafers, overall chip costs are expected to be reduced through yield improvement and cost
optimization for each node. Furthermore, if the connection pitch can be reduced, parallel connections
can be made at multiple points, resulting in faster devices with lower power consumption, and smaller
device size.
Thus, the introduction of bonding technology is being considered in many areas. Today, we will explain
the applications and merits of this technology to 3D NAND and Logic backside PDN, both of which are
currently under accelerated development.
Wafer Bonding Application for 3D NAND: Slide 73
In 3D NAND, development to increase the number of stacked layers is progressing. The current structureis shown on the left side. To reduce the device footprint, the peripheral circuit is formed first and memory
cells are continuously formed on the top of the peripheral circuit. On the other hand, as the number oflayers increases, the risk of deterioration of the peripheral circuit increases due to the thermal budget
issue. As a solution to this problem, the bonding structure on the right side has been developed and isapplied. With this bonding process, the peripheral circuit and memory cells are manufactured on separate
wafers. Therefore, the manufacturing process for each can be optimized independently, and high-speedtransistors can be used in the peripheral circuit. In addition, since the wiring length between the peripheral
circuit and memory cell can be reduced, high-speed NAND devices are expected to be realized.
Furthermore, in the integrated wafer manufacturing process for the current structure, the long
manufacturing lead time from the peripheral circuit to memory cell stacking is an issue. The bonded
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technology enables parallel wafer manufacturing of each wafer, thereby shortening the TAT.
Wafer Bonding Application for Logic Backside PDN: Slide 74
Next, I will talk about Logic devices and the backside interconnect technology called backside PDN. The
current structure is on the left. The signal lines and power lines are formed on the front side of the wafer.
With scaling advances, the line width and pitch of signal lines become narrower. On the other hand, thepower lines are reaching the limit of their margin for voltage drop, making it difficult to further reduce line
width. Therefore, the technology called backside PDN on the right side is the key. In this technology,
signal lines are formed on the front side and power lines are formed on the back side by utilizing bonding
technology. This enables the line width of the power lines to be maintained. Thus, the device footprint canbe reduced while at the same time avoiding voltage drops in the power lines due to the reduced line width.
It is also possible to improve transmission quality by reducing leakage current. Thus, as a driver for further
scaling, bonding technology is attracting a great deal of attention in device manufacturing.
In this bonding process, as shown in the upper right of the figure, the device wafers with transistors andsignal lines and the bulk wafers are bonded together. At first glance, it appears that the bulk wafers are
simply bonded as is, but since the power lines are formed from the backside later, the distortion during
bonding must be kept to a few nano-orders of magnitude to keep it within the range where exposurecompensation is possible. This is called distortion, and its reduction is a technical requirement placed on
the equipment. We are working to achieve this goal by taking our knowledge of the front-end process,
optimizing the bonding process, and mastering the chuck control technology.
Thus, the introduction of bonding technology, i.e., technology to bond semiconductors vertically, has led
to the development of devices with higher performance and a smaller footprint.
Our Proposal for Wafer Bonding Process: Slide 75
I will now explain the wafer bonding process. Since there are a variety of device types used, we will use
a simplified process diagram. In the wafer bonding process, there are wafer processes before and after
the wafer bonding process. Therefore, in this process, it is important to have a platform with front-end
level cleanliness and integration with the pre-bond and post-bond processes. We have developed andmass-produced the Synapse™ Si wafer bonding system, which plays a central role in this bonding
process, utilizing our technology and experience in front-end process equipment. The necessary steps inthis wafer bonding process include plasma treatment to form dangling bonds on the bonding surface,pure water cleaning to impart OH groups, and high-precision alignment and bonding to bond the top andbottom wafers together. This is followed by annealing to strengthen the bond. In the wafer bonding
process, one side of the wafer must be thinned to a point that allows for the next wafer process. During
the thinning process, chipping of the wafer edge during processing is a problem. To prevent this, it isessential to remove the wafer edge before thinning. This process is called edge trimming. The edge
trimming process is usually associated with dust emission during edge trimming and the quality of thetrimmed area. These are very critical for device yield. We propose laser trimming equipment that canovercome these issues.
Wafer Bonding System: Slide 76
We would like to introduce some of our products for the bonding process. First is the wafer bonding
system, Synapse™ Si. This equipment combines a high-productivity platform cultivated in our front-end
processes with plasma control, cleaning, and high-precision technologies. Wafer bonding equipment
requires high-accuracy alignment technology for increasingly narrow-pitch microelectrodes. In addition,
the bonding surface must be void-free and highly reliable. Synapse™ Si is an integrated system thatcombines plasma, cleaning, and alignment bonding modules to achieve high reliability and productivity.
Laser Trimming System: Slide 77
This is the Ulucus™ L, a new laser trimming system, which was released today. This is an edge trimming
system required in the wafer bonding process. It is an integration of super-clean technology and laser
control technology based on the latest platform applied in our front-end process equipment.
Laser Trimming System: Slide 78
The wafer bonding process is preceded and followed by the front-end process, so clean technology ofthe equipment is important. We are committed to innovating the wafer bonding process as an eco-solution
by introducing this laser technology as a trimming system as well as a wafer bonding system, which is
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the core of the process. Please take a look at the video of the Ulucus L laser trimming system released
today.
Summary - For the Development of Wafer Bonding Process: Slide 79
Last but not least, the introduction of the bonding technology introduced today will accelerate performanceevolution at the advanced device and system level. In this regard, bonding is a key technology for nextgeneration devices. Leveraging the technology and experience we have accumulated in the front-end
process, we have today released the Ulucus™ L for wafer edge trimming in addition to Synapse™ Si forbonding. We will continue to promote further research and development of equipment for full-scale mass
production of the bonding process by taking advantage of our comprehensive capabilities. Thank youvery much.

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Account Strategy
Seisu Ikeda - Senior Vice President and General Manager, Account Sales Division
Hello everyone. This is Seisu Ikeda from the Tokyo Electron Account Sales Division. Thank you verymuch for your valuable time today. I would now like to present Tokyo Electron's account strategy.
Agenda: Slide 81
Here is today’s agenda.
➢ Technology exchange and roadmap co-creation with customers➢ Demand forecast for 24+ months➢ Customer satisfaction survey (CSSP: Customer Satisfaction Survey Program)First, I would like to talk about the "Technology exchange and roadmap co-creation with customers”.
Framework for co-creation of technology roadmap from N to N+4: Slide 82
In order to create "next generation products" needed by our customers, Tokyo Electron is engaged intechnology exchange and roadmap co-creation with our customers in parallel over multiple generations
from the current generation (N) to the next four generations (N+4). We have been able to reflect
information from customers and develop our own technologies with an eye to the future by receiving
information from our customers on future prospects for semiconductor device technology trends,
structures and designs, equipment performance required for each generation, sample wafers for highprecision evaluation, and customer expectations of manufacturing schedules. Through TEL's
development capabilities, including component technologies, we propose new functions and materials;
all of planning, designing, and manufacturing of equipment and processes to achieve performancetargets; maintenance of the evaluation environment, and provide feedback on the results. By establishingsuch a close communication system with our customers, we continuously create high value-added “NextGeneration Products” as the best partner of our customers.
Collaboration with Customers: Meet Tech Requirements for Several Generations: Slide 83
This slide shows the process of collaboration with our customers. In order to respond to the simultaneoustechnical requirements from the current generation (N) to the next four generations (N+4), we are working
on the co-creation of generation-specific roadmaps from the feasibility study phase of the concept to theend of mass production. As shown in this slide, based on our diverse application technologies, we sharewith our customers a sequence of initial studies, wafer demonstrations, delivery of development tools,
determination of process conditions, start of mass production, and proposals for improvement andmodification of mass production equipment. This is done so that we can continue to provide the technicalinformation, development results, and solutions that our customers expect in a timely manner wheneverissues arise.
Demand Forecast for the Next 24+ Months: Slide 84
Next, let’s look at the “Demand forecast for 24+ months”. We conduct the “Demand forecast for 24+
months " to ensure a proactive procurement strategy and smooth delivery to our customers. This initiative
is aimed at ensuring sufficient parts and materials and production leveling to meet customer delivery
deadlines, eliminating additional workload for manufacturing and start-up engineers in the event ofdelivery delays, and improving safety, quality, and productivity. Traditionally, we have compiled multi-year
investment roadmaps for each major account and combined them with our macro-market analysis. Fromaround the beginning of 2021, we have shared the concept and expected effect of the initiative mentioned
earlier with our customers in order to further improve the accuracy of this activity, considering
environmental changes caused by the recent materials shortage. We are now able to receive detailed
equipment installation plans from our customers on a frequent and regular basis. Our own WFE forecast
is incorporated into the customer’s equipment installation plans over 24 months, and the latest accurate
information is disseminated to TEL's domestic plants through accounts and BUs, and then the information
is promptly provided from each plant to the supply chain and suppliers.
Demand Forecast for the Next 24+ Months – Operation Outline: Slide 85
This page graphically describes this activity. As an operation outline, we update both the investment map
and the WFE forecast every six months based on our own market analysis. In addition, we ask our clientsto update their forecasts once or twice a month, so that we can make more accurate demand forecasts.
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The period covered by our clients' forecasts used to range from 9 to 12 months, but now it is for morethan 24 months. This allows the BUs/factories to do well-planned procurement for sufficient parts andmaterials to ensure production leveling.
Purpose, Positioning, and History of Customer Satisfaction Survey: Slide 86
Next, I will explain the customer satisfaction survey called the TEL CS Survey. Tokyo Electron conducts
an annual customer satisfaction survey (TEL CS Survey) and uses the evaluations for our continuous
improvement. The purpose of this survey is to serve as a fixed-point observation of customer satisfaction
and to conduct objective analysis to understand the strengths and weaknesses of our products andaccounts, as well as any problems and issues. Next, it is positioned as one of the important pieces ofreference data to measure the direction of activities for improvement and corresponds to the "C" part ofthe company-wide improvement PDCA shown in the figure on the right. In terms of the history of ouractivities, this survey started with the Clean Track BU in 2003, was expanded to all the divisions ofsemiconductor manufacturing equipment in 2014, then to the flat panel display (FPD) manufacturing
equipment division and overseas subsidiaries in 2016, and is now being conducted company wide as the
TEL Customer Satisfaction Survey Program, abbreviated to CSSP. The current customer coverage rate
is over 90%, excluding those customers who have conducted their own supplier assessments.
CSSP (Customer Satisfaction Survey Program) Operation: Slide 87
In the operation of the CSSP, customers at more than 250 locations around the world are surveyed oncea year at the same time with specific questions designed to lead to our improvements at the working level.
Examples of questions include: for the sales division, ease of communication, understanding of requests
and problems by the sales staff, solution proposals, and ability to implement them; for plants, equipment
lead time, performance/functionality, technical development capabilities, and speed of response; and forthe service division, awareness of safety standards, adherence to safety procedures, and field support
capabilities. Customers are asked to select one of four response options: "very satisfied (4 points),""satisfied (3 points)," "unsatisfied (2 points)," or "very unsatisfied (1 point). The passing line is defined as
the average score of all customers who responded to each question, and the average score must be atleast "Satisfied (3 points)" for all items. The information obtained from these surveys is analyzed bycategory; business unit (product), account (customer), and function (software, development, etc.), andthe results are shared with relevant departments such as sales, equipment/plants, and service to takeactions for improvement. We are also making improvements in all aspects of the survey methodology,
including questions, analysis methods, and overall management of CSSP activity.
CS Survey KPI Results for All TEL Products (2021 vs 2022): Slide 88
In FY2022, 1,459 customers (76.1% of the total) responded to CSSP, far exceeding our target of 60%
and up +5.9% from the previous year. We achieved our overall goal of an average score of "Satisfied (3points)" or higher for all questions answered, an improvement of 3.3% from FY2021. For the customers
who responded with the “Red Flag”, very unsatisfied (1 point), we promptly responded to the customer
and took the first actions within 42 days after the survey. We are engaged in improvement activities at an
early stage across the entire survey. The entire company will continue to work together to promotecustomer-centered improvement activities.
To further improve customer engagement: Slide 89
Through these activities, TEL aims to further improve its technical, sales, and support capabilities. In
FY2021, we were honored to receive the highest awards from a number of our customers. We would liketo thank our customers for their high evaluation of our activities, and we will continue to further enhancecustomer engagement to ensure TEL's continued growth and increase corporate value. Thank you all foryour attention.

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Field Solutions Business Strategy
Takeshi Okubo - Senior Vice President and General Manager, Global Sales Division
Hello, I’m Takeshi Okubo. I’m now in charge of the Global Sales Division, and responsible for all regions
including Japan, Europe, America, Asia, and new customers. From July, I will be in charge of the Field
Solutions BU.
Rapidly Growing Investment in Mature Generation: Slide 91
As you are all aware, the semiconductor production equipment market is expanding, and the proportionof investment in mature generation, or legacy nodes, has been increasing in recent years, accounting forabout 30% of the total market, and about 40% of non-memory investment.
We have renewed our equipment for 200mm wafers, which was discontinued in the past, by incorporating
the technology we have cultivated in our current 300mm equipment.
In addition, there is a growing need for power semiconductor manufacturing equipment, especially in thein-vehicle market, such as electric vehicles (EVs).
We have also seen a dramatic increase in opportunities to provide services such as the replacement ofconsumable parts, repairs, maintenance, and cleaning for equipment that we have delivered in the past.
We have also received many requests for modifications to improve equipment uptime.
Equipment for Mature Generations: Slide 92
Although there used to be a lot of used equipment available for the legacy node market, the remarkablerise in demand for semiconductors in recent years has depleted the amount of used equipment andfinding used equipment on the market has become extremely difficult. In order to replace aging equipment
and to meet emerging customers’ demand for equipment for legacy nodes, we have reintroduced to themarket new models of 200mm wafer-compatible equipment that we previously manufactured and sold,such as thermal processing equipment, coater/developers, and etch systems, that use the latest
technology and materials to dramatically improve productivity. In addition, our SiC epitaxial deposition
systems for power semiconductors, which are experiencing remarkable growth, have been well received
by our customers, especially for EV in-vehicle applications. Further growth is expected in the future fromthe perspective of reducing environmental impact.
Field Solutions: Slide 93
The parts and service business, which is at the heart of field solutions, is a stable business that isnecessary as long as equipment continues to operate, such as the replacement of consumable parts andmaintenance. As semiconductor technology becomes more sophisticated, equipment becomes more
complex, and customers are less likely to purchase parts and services from third parties. We think that
our customers understand that choosing genuine parts and our unique services is a shortcut to stabilizing
the operation of their equipment. The number of install-based equipment exceeds 80,000, with over 5,000
units delivered last year. All of these are the "seeds" that lead to the field solutions business, and thisnumber continues to grow. We are required to propose and provide more effective and efficient services.
Advanced Field Solutions: Slide 94
Therefore, we are developing various solutions to meet the needs of our customers and society, centeringon TELeMetrics™, which utilizes DX, data and digital technology. We collect data for each piece ofequipment, monitor its operating status, and perform predictive maintenance. By compiling a databaseof support and trouble history and centrally managing them to accumulate knowledge, we strive toimprove work efficiency and provide customers with faster, higher quality services. In particular,
TELeMetrics™ and smart glasses have enabled us to provide cutting-edge and sustainable support by
remotely connecting local field engineers and Japanese factories, even in extremely challenging
environments such as the travel restrictions imposed by Covid pandemic lockdowns. From theperspective of BCP (Business Continuity Plan), we are also working to further strengthen logistics toensure a stable supply of equipment and parts. In addition, we are focusing on enhancing our services
on a global basis. We have developed a program to improve the technical skills of our more than 4,000
field engineers worldwide, and have established a group-wide skills management system.
Summary: Slide 95
The current bottleneck is still the lack of supply of devices such as power, analog, SOC, microcontrollers,
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sensors, and system-on-chip for the automotive and industrial markets, and we will strengthen sales tocustomers to invest in expanding their manufacturing capacity. Taking advantage of the industry's largest
installed base, TEL will respond to customer needs through modifications for upgrading, production
capacity improvement, and renewal of equipment that has been discontinued. In addition, we will use thelatest DX technology to promote advanced field solutions, including predictive maintenance, remotesupport for start-up and trouble-shooting, and other services. The most important thing is to strengthen
the front line, and by developing highly skilled front-line engineers, we can correctly understand the
problems and issues that exist in the field and promptly feedback real customer needs to the productdevelopment process. This will result in high value-added products, and we believe that by becoming
unique and the sole partner in this way, we will win even more trust from our customers.
That concludes my talk. Thank you very much for your attention.

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Introducing TEL’s DX Activities and Our Ideal State
Noritaka Yokomori - Deputy GM of Corporate Innovation Division, DX
Good afternoon, everyone. I am Noritaka Yokomori and I’m in charge of promoting Tokyo Electron Digitaltransformation. I would like to present our DX activities and our aim for the future.
TEL DX Vision: Slide 97
First of all, we have this DX Vision. Let me read it out aloud. “A global company where all employees
drive enterprise value creation sustainably through activities such as value addition and efficiency
improvements by leveraging digital technology.” The point is that all DX activities are a means to create
corporate value. When implementing DX activities to improve operational efficiency, we do not simply
digitize existing operations, but first define our “To Be image”. We then proceed with the necessary
business innovation and, if necessary, the development of digital tools to support that transformation. In
this sense, I believe that DX activities can also serve as a "trigger" for business innovation for the creationof corporate value.
TEL DX Grand Design: Slide 98
This is the grand design of TEL's DX activities as a whole. As I will repeat, DX activities are a means anda trigger for achieving TEL's vision and corporate management plan. The grand design is that DX
activities shown in the lower part of the figure support and promote the four material issues for achieving
our mid-term plan: "Solid management foundation," "Higher productivity across the entire business,""Product competitiveness," and "Enhancement of customer responsiveness.” The structure of our DX
activities itself is largely two-story: the first floor is the infrastructure for promoting DX activities, including
the development of digital skills, fostering cultural literacy, and governance and platforms that facilitate
the use of data. The second floor is DX application development, which supports value creation ofcustomers and group-wide business innovation by utilizing these infrastructures. The core of the second
floor is applications that support the management foundation, followed by applications that support DX
activities in development, production and the field, and finally, applications that utilize data on a large
scale across divisions.
Steps of DX Activities: Slide 99
Next, I would like to explain the steps for DX activities. Basically, all DX activities are conducted inaccordance with these four steps. In the development of digital tools that support the value creation forcustomers, the first step is to recognize the situation using sensors, etc., then to diagnose and analyze
single or multiple pieces of data by linking them together, and based on the analysis results, to makefuture predictions and control the system. In addition, by repeating this cycle, the analysis and control
model is repeatedly learned and evolves as it undergoes development and improvement activities. The
steps for DX activities for group-wide business innovation are similarly a cycle of first understanding andvisualizing the current situation, drawing a To Be image, which is the ideal image, then planning thenecessary business innovation and digital tools to support it, and finally implementing them. By repeating
this cycle, the steps of improvement and innovation are carried out, and the process evolves. These DX
activities contribute to the speed of product development and product start-up, that is, the time-to-market,
at the customer's site. DX activities are also conducted to improve yield and utilization rates in mass
production, in other words, to contribute to overall equipment efficiency. At our own sites, DX activities
are conducted in all phases of the product life cycle, from planning to development, production, andcustomer sites. This accelerates the time-to-market, reduces product costs, improves profitability, andextends lifetime value.
Relationships between Projects in DX-related Developments: Slide 100
This page explains the relationship between the various projects in our DX-Digital technology
development. Our DX-Digital technology development is divided into four major categories: DX
foundation, application development for capital efficiency and management foundation, equipment
foundation development, and value-added application development.
The relationship between these four areas is that DX activities aimed at improving the DX foundation andour capital efficiency will increase efficiency, but rather than reducing the resources and budgets, the timecreated by improving the quality and speed of work through these activities can be used to develop thefoundation development of higher value-added products and value-added applications for creating
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customer value, thereby promoting the creation of corporate value.
DX Engineer Training Plan: Slide 101
Now, let me introduce our DX activities project in detail.
First of all, in the area of skill improvement and human resource development, which is a part of theinfrastructure, we divide DX engineers into several categories based on their roles and conduct
appropriate training for each of them.
First, data science skills are defined as the skills to understand the latest AI technologies and the latest
information from academia on mathematical science and computation, and to use those skills to create
our corporate value. We are working to enhance these skills mainly at our renovated Sapporo office in
Hokkaido, TEL Sapporo Digital Design Square.
Next, data engineering skills, which are the skills of engineers who have knowledge of our products andprocesses to develop and embed algorithms developed by data scientists for our products, processes,
and internal operations. We are working to enhance these skills at our Business Units, plants, eachcustomer site, and each of our local subsidiaries.
Finally, business planning skills are the ability to understand essential issues, define appropriate problemsolving approaches, and link these to corporate value creation activities both internally and externally.
We will work to enhance this capability in the corporate division first, and then in each business unit andplant.
Example Activity 1 – Increasing Productivity of Equipment: Slide 102
Next, I would like to introduce five examples of application development using digital technology.
First of all, we would like to introduce an example of an application for Etch systems, one of our coreproducts, which requires periodic maintenance by opening the process chamber. A "seasoning," which isa conditioning of the Etch chamber, is required before production wafers are processed. In the past,customers had to determine the number of wafers to be processed for seasoning based on their pastexperience. After a seasoning is operated by processing some wafers for seasoning, wafers for
qualification are processed to confirm if the Etch chamber is well-seasoned before production wafers areprocessed.. In such an operation, customers often used more dummy wafers for seasoning than required,or, on the other hand, they had to go through the seasoning process twice as a result of using too few
seasoning wafers.
In order to address this problem, we have developed a technique to estimate radical density in the plasma
from the optical emission spectroscopy (OES), which has enabled our customers to process productwafers as soon as the seasoning is completed. In consequence, we have succeeded in delivering thisnew technique for our customers' mass production.
Example Activity 2 – Increasing Operation Cost of Equipment: Slide 103
Next, I would like to introduce an application of digital technology to our Coater/Developer, Clean Track™,
which we have maintained a market share of approximately 90% for many years. Clean Track™, whichcoats and develops photoresist, is attached to exposure systems in the lithography process, which
projects semiconductor circuits. The photoresist must be coated on the entire surface of a 300 mm wafer
with a uniformity on the order of Å (angstrom). 1Å equals 0.1 nm, or 1/10,000,000 of 1 mm. The
diameter of a hair is about 0.05 mm, so it is 1/500,000,000 the size of a hair.
In order to coat photoresist with such precise control with the minimum necessary amount of highly
expensive chemicals, we use machine learning to control the pumps and valves used for the chemicals,
as well as the wafer rotation speed, while monitoring the state of photoresist discharge.
Example Activity 3 – Increasing Productivity of R&D: Process Informatics: Slide 104
Next, I would like to introduce the application results of productivity improvement in the R&D. This is asample of Gate all around (GAA), which is expected to be adopted by Logic customers in the future. The
black area is Si, and the surrounding area is Ti-ALD formed by plasma ALD. In actual processdevelopment, about 10 parameters such as plasma power, pressure, time, gas type, gas time, flow, andnumber of ALD cycles must be adjusted simultaneously in order to satisfy multiple performancerequirements such as film thickness, coverage, and damage.
The left side is the result of human conditioning, and the right side is the result of machine learning.
As you can see, the left side shows plasma damage and insufficient coverage. The process condition on
the right, which was calculated by machine learning based on the experimental data obtained by
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engineers, shows less damage and better film coverage.
Example Activity 4 – Improving Overall Equipment Effectiveness: Slide 105
The fourth example is the use of a knowledge management system to improve overall equipment
efficiency. We have accumulated more than 20 years of knowledge from field work reports and ourexperiment reports, which we use to investigate the causes of problems at our customers' sites.
For example, the time from the occurrence of a problem to the investigation of its cause, which used totake several days regardless of the skill level of the engineer, is now being resolved within the same day,in many cases.
Such knowledge is also used semi-automatically in FMEA during equipment and function development
to prevent further problems in the field.
Example Activity 5 – Increasing Productivity of Operations: Slide 106
The last example of Digital technology application is a chatbot, which is an example of an application to
improve internal business efficiency. We have already introduced chatbots in the legal, finance, andhuman resources departments. Each system is being used by more than100 people or more each month,and the automated responses are improving the quality of work by reducing man-hours.
No SlideNow, I would like to introduce our future vision and what we are aiming for by utilizing digital technology,
which extends from the use of data inside equipment at customer sites to the use of data globally.
First, the RF power and various gas flow rates inside the equipment are recognized and visualized by the
primary sensor for each component, and the state of each component is recognized → analyzed →controlled → learned and evolved in an iterative cycle to ensure stable operation as required, and to becontrolled autonomously.
Next, the physicochemical phenomena such as the plasma state and wafer temperature that eachcomponent is trying to produce are monitored by secondary sensors, and the correlation with eachcomponent is also recognized and controlled.
Then, the results of the wafer process are predicted by process simulation and monitored by a tertiary
sensor named the process fingerprint sensor, which observes the results of the process. The goal is tocreate a state in which each physicochemical phenomenon is simultaneously controlled based on theinformation from the tertiary sensors, and the control model and process simulation are also automaticallylearned.
Once all of these technologies are completed, we believe that it will be possible to reverse this flow in the
future. In other words, we believe that if we input a request for a process result, the physicochemical
phenomena that will lead to that process result will be deduced, and the current state of each component
will be understood, creating a state in which the movement of each component is controlled. We also
believe that this process simulation technique can be applied to OPC for Mask design.
Digital technologies such as wireless communication and wireless power supplies will enable unit andequipment designs that are free from the limitations of wiring that we have been facing, and will enhance
productivity per unit area for our customers. And to save manpower in the clean room, maintenance workthat has been performed by humans will be performed by automated robots as much as possible. All
equipment information is sent to the fleet server, which performs inter-equipment coordination control tomatch the customer's production and power savings plans.
When human intervention is required for troubleshooting or upgrading equipment, work procedure
information is displayed on Smart Glass or tablets, and work history is automatically traced. The individual
status of each piece of equipment and TEL manuals are shared with the customer in encrypted form ona shared private cloud to ensure quality control of parts and just-in-time delivery of parts. In addition, workand experiment reports are accumulated in TEL's knowledge management system and utilized for future
CIP development and FMEA during product development. This information is then shared with customers
in the private cloud, and is used for their own troubleshooting and equipment operation.
By analyzing information from all over the world, we expect to be able to forecast future demand, utilize
the information for factory production planning, and make proactive proposals such as OEE
improvements.
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All of the digital technologies I have introduced today will help our customers improve process
performance, quality, wafer productivity, time to market, and the environment.
Thank you very much.

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New Board of Directors Structure and the Corporate Officer System
Tetsuo Tsuneishi - Corporate Director, Chairman of the Board
I am Tetsuo Tsuneishi, Chairman of the Board of Directors. I would like to take a few minutes to explain
Tokyo Electron's governance structure and the effectiveness of the Board of Directors, as well as the
Corporate Officer System that we plan to introduce after the passage of the resolution at the Annual
General Meeting of Shareholders on June 21.
Corporate Governance Framework (Audit & Supervisory Board System): Slide 108
Our present governance structure is as shown in the diagram on this slide. The three important roles andresponsibilities of the Board of Directors are listed in our Corporate Governance Guidelines. They are:
1. Establishing management strategy and vision
2. Making major operational decisions based on strategic direction
3. Engaging in constructive, open-minded debate
Regarding these three important roles and responsibilities, I believe that TEL's Board of Directors,
including the Nomination Committee and Compensation Committee, is highly effective and functions
appropriately to fulfill its role of supervising management decision-making and execution.
Last year, Tokyo Electron was honored from among 2,200 companies listed on the First Section of theTokyo Stock Exchange as the Grand Prize Company in the Corporate Governance of the Year® 2021
program sponsored by the Japan Association of Corporate Directors.
Such high evaluation from an external organization is also a result of the frank, useful and effective
exchange of opinions and active participation at board meetings by Tokyo Electron's internal and outside
directors and corporate auditors. Among these people, I believe that the contributions of our outside
directors and outside corporate auditors are also very significant.
Outside Directors Video message: No slide
Now, I would like to take this opportunity, with the investors and many others involved with capital markets
in attendance today, to listen to some messages from our four outside directors. Each of them will deliver
a one-minute video message on the theme of "How you can contribute to improving TEL's corporate
value from your position."<Charles Lake – Outside Director>
My name is Charles Lake and I serve as an outside director. Tokyo Electron has approved a new mediumterm management plan and announced its new vision – TEL’s Shared Value (TSV). Technology Enabling
Life - and TEL creating shared value - is an effective strategic framework to enhance TEL's corporate
value over the medium to long term.
The Corporate Governance Code requires the Board of Directors of Prime Market-listed companies tohave “free, open, and constructive discussions” when making important management decisions. To thisend, the formulation of the Medium-term Management Plan and TSV involved robust “free, open, andconstructive discussions,” inside the Boardroom and outside, among Directors and executive
management. TEL has also announced additional reforms to further advance its corporate governance.
In a society where change is accelerating, TEL's corporate governance reforms are important forachieving even faster decision-making and more agile operational execution.
I believe that TEL will continue to challenge itself and evolve to become the world's No. 1 company. This
is indeed the beginning of an exciting era.
<Michio Sasaki – Outside Directors>
My name is Michio Sasaki, one of TEL’s Outside Directors. As an outside director, I believe that I can use
my experience to monitor and advise on the priorities and optimal balance within each strategy ofmanagement, human resource development, and governance strategy, based on the new Medium-termManagement Plan to go from world-class to world-leading, with a focus on profit growth and speed withhigh-quality and high value-added product development and services.
To ensure the success of the new Corporate Officer system, I would like to supervise the appropriate
transfer and balance of authority to accelerate the speed of management decision making. I also consider
it important to monitor DX and security measures based on my experience of participating in the
management strategies of IT companies. In addition, as chairman of the Nominating Committee, I will bein charge of selecting candidates who can lead to continuous growth for the next generation and their
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development plan from a fair and neutral standpoint.
With the above, I would like to contribute to TEL's medium- to long-term growth and the enhancement ofcorporate value. Thank you very much.
<Makiko Eda – Outside Directors>
I’m Makiko Eda, one of the Outside Directors. Semiconductors are becoming more and more importantthese days, and I would like to contribute to the growth of our company from the standpoint of myexperience in this industry. Semiconductors are products that will shape the future, and it is essential toinvest strategically while imagining the future world.
For Tokyo Electron's further growth, the Board of Directors actively discusses innovation and humanresource development necessary for medium- and long-term growth. Diversity and inclusion, which
especially includes the ability to incorporate factors like gender, global, and generation, will be the sourceof the company's growth, and I would like to firmly support the promotion of such diversity and inclusion.
The industry is global and dynamic.
As an outside director, I intend to contribute to our sustainable value enhancement through prompt andappropriate decision-making, including geopolitical factors, as a top global company.
<Sachiko Ichikawa – Outside Directors>
My name is Sachiko Ichikawa, one of the Outside Directors. I am honored to have the opportunity todeliver a message to investors today.
I believe that one of the roles of an outside director is to supplement the Board of Directors with theinvestors' perspective. Providers of capital are very interested in growth potential as well as profitability.
The words “long-term strategy,” “timeline,” and “alternative scenarios” come up frequently in our board
meetings. This is because we are not only overseeing the current year's operations, but also looking more
broadly and further into the future. I believe that the results of proactive investments are shaping thecurrent high performance of the company.
In the age of VUCA, the future is becoming harder to predict, and in the age of ESG investment, investors'
evaluation points are changing rapidly. Because we live in an era in which forecasts are difficult to make,it is necessary to improve the ability to make forecasts and to develop countermeasures in case forecasts
are off. In this sense, the role of outsider directors is becoming even more important.
I will continue to make every effort to achieve success with the Board of Directors that will enable us to
seize opportunities and demonstrate our capabilities. Thank you very much.
Outside Directors as of June 8, 2022: Slide 109
What did you think? I hope that the video messages have provided you with a better understanding of
our outside directors' thinking and the contributions they make to TEL. As Mr. Charles Lake will be retiring
at the June 21 shareholders' meeting, I would like to express my sincere gratitude for his significant
contributions and useful advice and proposals over the past six years.
Corporate Governance Framework (Audit & Supervisory Board System): Slide 110
Next, I would like to introduce the Corporate Officer System, which is scheduled to be introduced after
the Annual General Meeting of Shareholders on June 21, as well as the background to its introduction
and its role. First, I would like to examine the current situation from a macro perspective. We are now inan era of ultra VUCA, and this includes geopolitical issues. As Ms. Ichikawa mentioned in her video,
unprecedented changes are occurring in the business environment and operations on a daily basis,including the rapid evolution of digital technology, the COVID pandemic and armed conflict in some areas.
At Tokyo Electron too, we are experiencing major changes with the unprecedented rapid growth of thesemiconductor industry, including semiconductor production equipment, due to the technologicaltransition represented by AI, Big Data, IoT and 5G, and the rapid development and spread of digitaltransformation.
In an environment where rapid change is spurring intensified competition, collaboration and technologicaladvancements, I believe it will be essential to make management decisions more quickly and accurately
than ever and to execute operational decisions with greater agility. In order to realize faster and more
precise decision-making, we will introduce the Corporate Officer System.
Corporate Governance Framework (Audit & Supervisory Board System): Slide 111
At the Corporate Officers Meeting, which will be the highest decision-making body for operational
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execution, the seven Corporate Officer members, including the CEO, will exchange opinions and engage
in discussions on equal terms as the CEO and make important decisions in a timely manner.
The Corporate Officers Meeting will also enable its members to share important decisions with each
responsible department simultaneously and promptly, and to increase the power of operational execution
through stronger collaboration, thereby realizing dynamic and agile operational execution. The othermajor objective for this system is to better clarify the roles and responsibilities of the Board of Directors
and the operational execution side. As I mentioned, by strengthening the operational execution side andtransferring appropriate authority from the Board of Directors to the operational execution side, the Boardof Directors will be able to enhance its supervisory function and establish a system that allows it to focus
on medium- to long-term management issues and growth strategies, which are becoming increasingly
important.
Furthermore, all Corporate Officer members on the execution side will participate in Board of Directors
meetings and be able to provide explanations and opinions on matters related to discussions andresolutions at such meetings.
Corporate Governance Framework (Audit & Supervisory Board System): Slide 112
In other words, the introduction of this system is a measure to strengthen and optimize the three functionsof "In-depth discussion of medium- to long-term growth strategies," "Supervision of business execution,"and "Decision-making on business execution," and is intended to further promote growth-oriented Groupmanagement on a global basis, as well as to realize the expansion of short-, medium- and long-term profit
and continuous corporate value enhancement in an era of ultra VUCA. I believe the new structure is areform that will strengthen governance of both the Board of directors and operational execution.
And with that, I would like to conclude my explanation of Tokyo Electron’s governance structure, theeffectiveness of the Board of Directors, and the introduction of the Corporate Officer System.
Finally: No Slide
Finally, on a personal note, I will be stepping down from my position after the Annual General Meeting of
Shareholders on the 21st, leaving me with only two weeks. Looking back, I am very happy to have beenwith Tokyo Electron for 46 years since I joined the company in 1976, and I am very pleased that we havebeen able to grow so much thanks to your great support. I would like to take this opportunity to express
my deepest gratitude to all of you for your support and heartwarming encouragement to me personallyand to our company. Thank you very much.
I understand that the current semiconductor industry-related market is on the threshold of a period offurther significant growth. We will work as One Team to achieve the goals of the new Medium-termManagement Plan, aiming for even greater growth in corporate value.
Thank you very much for your continued support.

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