東京エレクトロン株式会社

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1 CONTENTS Industry Data Tokyo Electron (TEL) Overview Global TEL Topics in Recent Years Semiconductor & TFT-LCD Manufacturing Process Flow Consolidated Operating Results Semiconductor Production Equipment (SPE) and FPD Production Equipment Consolidated Financial Data Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Cash Flows Consolidated Quarterly Data Stock Information C TOKYO ELECTRON 27 As of March 31, 27 FACT BOOK

2 Industry Data 26 World Electronic System Market World Semiconductor Market World Wafer Fab Equipment Market 33 World Electronic System Market World Semiconductor Market (US$ Billion ) 437 1,81 1,153 CY (US$ Billion ) CY World Wafer Fab Equipment Market (US$ Billion ) CY World TOP 1 Semiconductor Production Equipment Manufacturers CY Applied Materials 2 Tokyo Electron 3 Nikon 4 Canon 5 Lam Research 6 Advantest 7 Hitachi 8 Teradyne 9 Dainippon Screen 1 Varian CY 2 1 Applied Materials 2 Tokyo Electron 3 Nikon 4 Teradyne 5 ASM Lithography 6 KLA-Tencor 7 Advantest 8 Lam Research 9 Canon 1 Dainippon Screen CY 25 1 Applied Materials 2 Tokyo Electron 3 ASM Lithography 4 KLA-Tencor 5 Advantest 6 Nikon 7 Lam Research 8 Novellus Systems 9 Hitachi High-Technologies 1 Canon CY 26 1 Applied Materials 2 Tokyo Electron 3 ASM Lithography 4 KLA-Tencor 5 Lam Research 6 Advantest 7 Nikon 8 Novellus Systems 9 Dainippon Screen 1 Canon

3 Tokyo Electron (TEL) Overview 1 Corporate Information Composition of Net Sales by Division Corporate Name World Headquarters Tokyo Electron Limited Established November 11, 1963 TBS Broadcast Center, 3-6 Akasaka 5-chome, Minato-ku, Tokyo, Japan Capital 54.9 Billion (as of March 31, 27) Computer Network 2.2 Electronic Components 1.4 FPD Production Equipment 11.8 Fiscal year ended March 31, 27 Others.2 Semiconductor Production Equipment 75.4 Major Products and Services As of April 27 Industrial Electronic Equipment Electronic Components & Computer Network Semiconductor Production Equipment FPD Production Equipment Electronic Components Computer Network Coater/Developer FPD Coater/Developer Semiconductor Products Business Network & Security Solutions Plasma Etch System FPD Plasma Etch/Ash System Board Computer Products Storage Area Network Solutions Thermal Processing System FPD: Flat Panel Display Other Electronic Components Middleware/Software Solutions Single Wafer CVD System Surface Preparation System Wafer Prober This product category is handled by TEL s subsidiary Tokyo Electron Device Limited. This product category is handled by TEL s subsidiary Tokyo Electron Device Limited. Imported Products

4 2 Global TEL Consolidated Sales in Japan and Overseas 1, Number of Employees Worldwide 1, 75, 7,5 5, 5, 25, 2, Sales in Japan Sales Overseas ( Millions ) Sales in Japan 256,88 23,55 149, , , ,516 19, , , , ,816 Sales overseas 175, ,35 163, , ,68 231,39 27,67 287,336 43,32 411, ,159 Total 432, , ,82 44, ,88 417,825 46,58 529, ,71 673, ,975 Japan U.S.A. Europe Asia (Persons ) Japan 3,98 5,41 6,922 6,548 6,896 U.S.A ,315 1,25 1,353 Europe Asia Total 3,988 5,41 8,946 8,864 9,528 Tokyo Electron Group As of June 27 Tokyo Electron Limited Marketing/Sales/R&D Field Engineering / Overseas Marketing, Sales Manufacturing/Development/Engineering Electronic Components Sales Others Domestic Domestic Overseas Domestic Domestic Tokyo Electron FE Ltd. Overseas Tokyo Electron America, Inc. Tokyo Electron Europe Ltd. Tokyo Electron Israel Ltd. Tokyo Electron Korea Ltd. Tokyo Electron Korea Solution Ltd. Tokyo Electron Taiwan Ltd. Tokyo Electron (Shanghai) Ltd. Tokyo Electron AT Ltd. Tokyo Electron Tohoku Ltd. Tokyo Electron TS Ltd. Tokyo Electron Kyushu Ltd. Tokyo Electron Software Technologies Ltd. Tokyo Electron PS Ltd. Tokyo Electron Technology Development Institute, Inc. Tokyo Electron Massachusetts, LLC TEL Technology Center, America, LLC Timbre Technologies, Inc. TEL Epion, Inc. Tokyo Electron Device Ltd. Listed on the Tokyo Stock Exchange 2nd section in March 23. Tokyo Electron BP Ltd. Tokyo Electron Agency Ltd. Overseas Tokyo Electron U.S. Holdings, Inc. Tokyo Electron U.S. Holdings.Inc. owns U.S. subsidiaries marked with. Venture Capital TEL Venture Capital, Inc.

5 Topics in Recent Years Tokyo Electron (Shanghai) Ltd. established. Apr 4 Apr 9 Sep Shipment of CL12, an FPD coater/developer for 5th generation substrates, started. e-beam Corp., a joint venture developing, manufacturing and marketing low energy electron beam direct writing systems for semiconductor production, established. 11 TEL announced participation in Albany Nov NanoTech project promoted by New York State Mar Tokyo Electron Device Ltd. listed on the 2nd section of the Tokyo Stock Exchange. 6 Jun 8 Aug TEL received the Prime Minister s Award for its contribution to Industry-Academia- Government collaboration in connection with the development of the Trias TM SPA plasma processing system. TEL Technology Center, America, LLC. (TTCA) established in the U.S. to conduct research and development of cutting-edge semiconductor materials and processes Jan TEL started volume production and shipment of CLEAN TRACK TM LITHIUS TM, a new coater/developer for 65nm node. 4 Apr 7 Jul 7 Jul Tokyo Electron AT Ltd. (surviving company) and Tokyo Electron Tohoku Ltd., manufacturing subsidiaries in Japan, merged. Tokyo Electron U.S. Holdings, Inc. established in the U.S., a holding company controlling U.S. subsidiaries: Tokyo Electron America, Tokyo Electron Massachusetts, and TEL Technology Center, America. Order acceptance for EXPEDIUS TM, a highperformance auto wet station for 65nm node, started Jan TEL received Superior Corporate Disclosure Award from the Tokyo Stock Exchange for the second time, the first time being in Jul 11 Nov TEL began accepting orders for immersion process coater/developer CLEAN TRACK TM LITHIUS TM i+. TEL released high productivity thermal processing system, TELINDY TM. 11 TEL began accepting orders for Certas TM 2 Nov and 3mm dry chemical etching systems Tokyo Electron Korea Solution Ltd. established. Feb 4 Tokyo Electron AT was split into three Apr Tokyo Electron AT Ltd, Tokyo Electron Tohoku Ltd, and Tokyo Electron TS Ltd. 4 Apr 6 Jun TEL began accepting orders for the latest 3mm single water cleaning systems, CELLESTA TM. TEL Venture Capital, Inc. established. 1 TEL released Trias TM LT Ti/TiN, the Oct Company s latest metal CVD system for 45nm generation contact applications. 11 Nov 11 Nov 11 Nov 12 Dec 12 Dec 12 Dec TEL announced commercialization of 3mm high-volume productivity coater/developer, CLEAN TRACK TM LITHIUS Pro TM. TEL started shipment of new fully automated wafer prober, Precio TM. TEL began full production shipments of the Company s most advanced auto wet station, EXPEDIUS TM +. TEL introduced TELINDY TM IRad TM plasma enhanced CVD reactor. TEL released Tactras TM Vigus TM, the Company s latest dielectric etch system. TEL acquired Epion Corporation, a supplier of gas cluster ion beam technology Tokyo Electron PS Ltd. established. Feb 6 Jun RLSA Division spun off and Tokyo Electron Technology Development Institute, Inc. established.

6 4 Semiconductor & TFT-LCD Manufacturing Process Flow The fabrication processes (wafer processing and TFT array process) essential for manufacturing semiconductors and s are similar. Semiconductor manufacturing process Wafer processing TELINDY TM CLEAN TRACK TM LITHIUS Pro TM Tactras TM EXPEDIUS TM + CLEAN TRACK ACT TM 12SOD TELINDY TM IRad TM TELFORMULA TM Trias TM SPA Silicon wafer Shallow Trench Isolation (STI) formation Gate formation Oxide film formation Nitride film formation Photoresist coating Exposure Development Patterning Etching Ashing / Cleaning Dielectric film formation Planarization Gate dielectric film formation Gate electrode formation Patterning UV light Photoresist UV light Silicon wafer Photoresist STI Wafers are placed in a hightemperature furnace. By exposing wafers to a flow of Ox gas, silicon dioxide film is formed on the wafer surfaces. Then silicon nitride film is formed on them by CVD method using silane and ammonia gas. While the wafers are rotated at a high speed in a coater, they are covered with a uniform coat of photoresist. The resist characteristics change when the resist is exposed to ultraviolet (UV) light, thus forming an image on the wafer. After glass masks with IC patterns are aligned with the wafers, UV light is applied to transfer the patterns to the photoresist using a stepper. In a developer, the wafers are uniformly covered with a developing solution to develop the mask patterns. With positive photoresist, the portion that has been exposed to light becomes soluble, thus leaving the mask patterns on the wafer surfaces. A plasma dry etch system is used to strip the dielectric films in accordance with the patterns developed on the photoresist. The portion protected by the photoresist remains intact, thus preserving the original pattern structure under the resist. After etch process, photoresist is removed by Ox plasma. Then wafers are dipped in chemical solvents to remove particles and impurities on the wafer. Oxide film is deposited in the trenches to form dielectric films. CVD system or SOD coater that applies liquid materials through spinning is used. A chemical mechanical polishing system is used to planarize the surface of the films. Gate film (Ox) is formed by oxidation and plasma nitridation process is applied to the surface of the gate film. Then, gate electrode film (polysilicon) is formed on it by CVD method. Source and drain areas are made by applying patterning processes to the gate electrode layer. TFT-LCD manufacturing process TFT array processing Glass substrate Deposition Photoresist coating Exposure Development Etching Ashing Cleaning n+ amorphous silicon layer TFT array inspection Source Gate Passivation layer Drain Amorphous silicon layer Gate insulator Glass substrate CS1S Impressio TM ITO electrode TFT=Thin Film Transistor

7 5 Trias TM Ectus TM Precio TM Interconnect formation (contact holes, via holes) Wafer test Ion implantation Annealing Intermetal dielectric film formation Planarization Photoresist Patterning UV light Metal film formation Patterning Photoresist UV light Intermetal dielectric film formation Planarization Probe Testing Assembly process impurities Inspection process An ion implanter dopes the source and drain areas with impurities, such as boron and arsenic. Ox films prevent dopant ions from being implanted in other areas. Subsequent annealing diffuses these impurities to a more uniform density. Intermetal dielectric film is formed by oxide using CVD method and the film surface is planarized by polishing system subsequently. Contact holes are opened by applying patterning processes to the dielectric film surface. Metal film is deposited in contact holes by CVD method. Via is formed by patterning the metal film. Low-dielectric-constant film is formed to insulate interconnects. CVD system or SOD coater that applies liquid materials through spinning is used. There are several hundreds of identical LSI chips on a fabricated wafer. Prober makes pins contact chips, and tests whether chips are good or bad electrically by exchanging signals. Product Cell process An array substrate and a color filter substrate are bonded and liquid crystals are injected between them to form liquid crystal cells. Module process Liquid crystal display module is completed by mounting driver ICs on liquid crystal cells, fixing metal or plastic frame, and assembling back lights. Inspection process Product Polarizer Filter Glass (Color Filter Side) BM B BM G BM R Over Coat ITO Electrode Alignment Layer Liquid Crystal ITO Alignment Layer ITO TFT ITO TFT TFT Glass (TFT Array Side) Polarizer Filter Back light Color Filter TFT Array Substrate

8 6 Consolidated Operating Results TEL s fiscal year ends on March 31. Each fiscal year described in this document is identified by the year in which it ends. For example, 27 is the fiscal year ended March 31, 27. Net Sales Net Sales by Division Composition of Net Sales by Division Cost of Sales and Gross Profit Margin Selling, General and Administrative Expenses and Ratio to Net Sales ( Million) ( Million) (%) ( Million) (%) ( Million) (%) 1,, 1,, 1 6, 4 16, 4 75, 75, 75 45, 3 12, 3 5, 5, 5 3, 2 8, 2 25, 25, 25 15, 1 4, Semiconductor production equipment FPD production equipment Electronic components Computer network Others Cost of sales Gross profit margin SG&A expenses SG&A expenses ratio ( Million ) Semiconductor ( Million ) Net sales ( % of total ) production equipment FPD production equipment Electronic components Computer network Other ,825 (1.) 325,715 (78.) 73,658 (17.6) 17,31 (4.1) 1,421 (.3) 23 46,58 (1.) 364,689 (79.2) 77,38 (16.8) 17,193 (3.7) 1,318 (.3) ,654 (1.) 425,747 (8.4) 84,229 (15.9) 18,448 (3.5) 1,23 (.2) ,71 (1.) 457,191 (71.9) 75,38 (11.8) 86,249 (13.6) 15,966 (2.5) 1,266 (.2) ,686 (1.) 486,883 (72.3) 81,176 (12.) 86,881 (12.9) 17,497 (2.6) 1,249 (.2) ,975 (1.) 642,625 (75.4) 1,767 (11.8) 88,294 (1.4) 19,169 (2.2) 1,121 (.2) ( Million ) Cost of sales Gross profit margin 22 32, , , , , , ( Million ) SG&A expenses Ratio to net sales , , , , , , Notes: 1. Some of the field engineering expenses of service-related subsidiaries, which were previously included in selling, general and administrative expenses, are classified as cost of sales from From 25, sales of FPD production equipment, which were included in the figures of SPE in previous years, are separately disclosed on a consolidated basis. 3. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 4. From 27, the Company adopts Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

9 7 Operating Income (Loss) and Operating Margin Ordinary Income (Loss) and Ordinary Profit Margin Net Income (Loss) and Net Income Margin Net Sales by Business Segment Operating Income and Operating Margin by Business Segment ( Million) (%) 15, 18 ( Million) (%) 15, 18 ( Million) (%) 1, 15 ( Million) 1,, ( Million) 2, 2 (%) 1, 12 1, 12 5, , 15, 15 5, 6 5, 6 5, 1, 1 5, , 5, 5 5, , , Operating income (loss) Operating margin Ordinary income (loss) Ordinary profit margin Net income (loss) Net income margin Industrial electronic equipment Electronic components & Computer network Industrial electronic equipment Electronic components & Computer network Operating margin ( Million ) Operating Operating income (loss) margin 22 (18,31) (4.4) 23 1, , , , , ( Million ) Ordinary Ordinary income (loss) profit margin 22 (19,464) (4.7) 23 (23) (.) 24 21, , , , ( Million ) Net income (loss) Net income margin 22 (19,938) (4.8) 23 (41,554) (9.) 24 8, , , , ( Million ) (% of total ) Industrial electronic Electronic components equipment & Computer network ,461 (86.4) 86,249 (13.6) ,85 (87.1) 86,881 (12.9) ,512 (87.4) 17,463 (12.6) Semiconductor production equipment, FPD production equipment, Other Electronic components, Computer network Sales of Computer network were included in segment before 26 ( Million ) Industrial electronic Electronic components equipment & Computer network Operating Operating Operating Operating income margin income margin , , , , , , Notes: 1. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 2. From 26, the Company adopts Accounting Standard for Impairment of Fixed Assets. 3. From 27, the Company adopts Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

10 8 Semiconductor Production Equipment (SPE) and FPD Production Equipment SPE Sales SPE Sales by Region Composition of SPE Sales by Region ( Million) 8, ( Million) 2, (%) 1 6, 15, 75 4, 1, 5 2, 5, Japan North America Europe Korea Taiwan China Southeast Asia Japan North America Europe Korea 7 Taiwan China Southeast Asia ( Million ) SPE Sales , , , , , ,625 ( Million ) Japan ( % of total ) North America Europe Korea Taiwan China Southeast Asia Total 22 96,724 (29.7) 94,733 (29.1) 28,319 (8.7) 23,196 (7.1) 6,474 (18.6) 7,494 (2.3) 14,775 (4.5) 325,715 (1.) 23 97,429 (26.7) 74,294 (2.4) 27,979 (7.7) 57,34 (15.7) 66,998 (18.4) 2,116 (5.5) 2,569 (5.6) 364,689 (1.) ,916 (33.3) 5,622 (11.9) 33,896 (8.) 61,412 (14.4) 1,455 (23.6) 17,558 (4.1) 19,888 (4.7) 425,747 (1.) ,455 (24.6) 62,725 (13.7) 31,127 (6.8) 71,52 (15.5) 11,646 (24.2) 3,669 (6.7) 38,517 (8.5) 457,191 (1.) ,174 (29.2) 93,272 (19.2) 45,45 (9.3) 66,948 (13.8) 18,314 (22.2) 1,83 (2.2) 2,3 (4.1) 486,883 (1.) ,731 (27.3) 15,614 (16.4) 47,964 (7.5) 16,169 (16.5) 141,794 (22.1) 29,651 (4.6) 35,72 (5.6) 642,625 (1.) Notes: 1. From 25, revenues from semiconductor and FPD production equipment, which were recognized at the time of shipment in previous years, are recognized at the confirmation of set-up and testing of products. 2. From 25, sales, orders and order backlog of FPD production equipment, which were included in the figures of SPE in previous years, are separately disclosed on a consolidated basis. Those figures of SPE in the above graphs and tables until 24 include those of FPD production equipment. 3. Geographical sales are classified according to sales destinations.

11 9 SPE Orders Received SPE Order Backlog FPD Production Equipment Sales FPD Production Equipment Orders Received FPD Production Equipment Order Backlog ( Million) ( Million) ( Million) ( Million) ( Million) 1,, 5, 12, 12, 1, 75, 4, 9, 9, 8, 3, 6, 5, 6, 6, 2, 4, 25, 1, 3, 3, 2, ( Million ) SPE orders received ( Million ) SPE order backlog ( Million ) FPD production equipment sales Non-consolidated ( Million ) FPD production equipment orders received Non-consolidated ( Million ) FPD production equipment order backlog Non-consolidated 22 27, , , , , , , , , , , , , , ,493 Consolidated Consolidated Consolidated 25 51, , , , , , , , , , , , , , ,211 Notes: 1. From 25, revenues from semiconductor and FPD production equipment, which were recognized at the time of shipment in previous years, are recognized at the confirmation of set-up and testing of products. 2. From 25, sales, orders and order backlog of FPD production equipment, which were included in the figures of SPE in previous years, are separately disclosed on a consolidated basis. Those figures of SPE in the above graphs and tables until 24 include those of FPD production equipment.

12 1 Consolidated Financial Data Working Capital and Current Ratio Receivable Turnover Inventory Turnover Interest-Bearing Debt and Debt-to-Equity Ratio Equity and Equity Ratio ( Million) (%) (Days) (Days) ( Million) (%) ( Million) (%) 4, , 8 6, 8 3, , 6 45, 6 2, , 4 3, 4 1, , 2 15, Working capital Current ratio Interest-bearing debt Debt-to-equity ratio Equity Equity ratio ( Million ) Working capital Current ratio (Days ) Receivable turnover (Days ) Inventory turnover ( Million ) Interest-bearing Debt-to-equity ratio debt ( Million ) Equity Equity ratio , , , , , , , , , , , , , , , , , , Working capital = Current assets Current liabilities Current ratio = Current assets / Current liabilities 1 Receivable turnover = Trade notes and accounts receivable at fiscal year-end / Net sales 365 Inventory turnover = Inventories at fiscal year-end / Net sales 365 Debt-to-equity ratio = Interest-bearing debt / Total equity at fiscal year-end From 27, Equity = Net assets subscription rights to shares Minority interests Notes: 1. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 2. The figure for trade notes and accounts receivable used for calculation of the receivable turnover does not include the figure for non-trade accounts receivable. 3. From 27, the Company adopts Accounting Standard for Presentation of Net Assets in the Balance Sheets, Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

13 11 Return on Equity (ROE) Return on Assets (ROA) Cash Flows Free Cash Flows Redemption of Debt (%) 24 (%) 24 ( Million) 16, ( Million) 12, (Years) , 9, 6, , 3, , , Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Cash and cash equivalents at end of year (%) ROE (%) ROA ( Million ) Cash flow from Cash flow from Cash flow from Cash and cash operating investing financing equivalents at activities activities activities end of year ( Million ) Free cash flows (Years ) Redemption of debt 22 (6.2) 23 (14.8) (2.8) ,558 (35,789) (57,214) 48, ,394 (7,27) (9,884) 52, ,883 (8,544) (1,271) 42, ,35 (7,45) (34,344) 115, ,854 (1,537) (43,421) 14, ,297 (25,293) (34,719) 134, , , (661) 25 16, , , ROE = (Net income / Average total equity) 1 ROA = (Operating income +Interest and dividend income) / Average total assets 1 Free cash flow = Cash flow from operating activities + Cash flow from investing activities Redemption of debt = Interest-bearing debt / Cash flow from operating activities Notes: 1. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 2. From 26, the Company adopts Accounting Standard for Impairment of Fixed Assets. 3. From 27, the Company adopts Accounting Standard for Presentation of Net Assets in the Balance Sheets, Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

14 12 R&D Expenses Capital Expenditures and Depreciation Expenses Interest Coverage Ratio Number of Employees Worldwide Net Income (Loss) per Employee ( Million) 6, ( Million) 4, (Times) 4 (Persons) 12, ( Million) 1 45, 3, 3 9, 5 2 3, 2, 6, 1 15, 1, 3, Capital expenditures Depreciation expenses ( Million ) R&D expenses ( Million ) Capital Depreciation expenditures expenses (Times ) Interest coverage ratio (People ) Number of employees worldwide ( Million ) Net income (loss) per employee 22 53, , , , , , ,946 26, ,359 27, ,7 24, ,876 21, ,335 19, ,129 18,82 22 (9.2) , , , , , , (2.) 23 (4.1) Interest coverage ratio = (Operating income + Interest and dividend income) / Interest expenses Notes: 1. Amortization of goodwill is not included in depreciation expenses. 2. From 27, the Company adopts Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

15 13 Net Income (Loss) per Share Cash Flow per Share Net Assets per Share Cash Dividends per Share Payout Ratio ( ) ( ) ( ) ( ) (%) 6 8 3, , , ( ) Net income (loss) per share 22 (113.85) 23 (238.57) ( ) Cash flow per share (81.39) ( ) Net assets per share 22 1, , , , , , ( ) Cash dividends per share (%) Payout ratio Non-consolidated Consolidated Net income (loss) per share = Net income (loss) / Average total number of shares outstanding in each fiscal year Cash flow per share = (Net income + Depreciation and amortization) / Average total number of shares outstanding in each fiscal year Net assets per share = Net assets / Total number of shares issued Payout ratio = Cash dividends per share / Non-consolidated Net income per share 1 Notes: 1. The payout ratios of 22 and 23 are not indicated due to net loss on a non-consolidated basis. 2. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 3. From 26, the Company adopts Accounting Standard for Impairment of Fixed Assets. 4. From 27, the Company adopts Accounting Standard for Presentation of Net Assets in the Balance Sheets, Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination 5. The number of shares outstanding excluding the treasury stock is used for calculation of per share data.

16 14 Consolidated Balance Sheets ( Million ) Years ended March ASSETS Current assets Cash and cash equivalents 31,16 71,57 46,91 79,519 65,32 48,49 52,982 42,65 115,42 14,24 134,39 Marketable securities Trade notes and accounts receivable 18, ,5 14, ,153 32, , , , , ,38 228,688 Allowance for doubtful accounts (1,692) (1,822) (1,134) (1,29) (1,72) (62) (342) (155) (114) (165) (127) Inventories 76,335 1,372 88,85 112, , , ,81 15, , , ,84 Deferred income taxes 5,36 12,659 3,42 4,152 2,943 18,173 21,356 28,326 Prepaid expenses and other current assets 4,91 1,636 15,36 2,892 7,48 6,888 5,619 6,795 27,73 23,489 24,226 Total current assets 292, ,83 29, , , , ,439 42, , ,488 61,363 Investments and other assets Investment securities 8,92 8,2 8,633 9,1 11,599 9,535 7,216 1,874 1,381 14,86 14,643 Deferred income taxes 2,145 7,394 22,591 9,362 1,23 15,313 13,175 13,691 Intangible and other assets 19,863 25,598 23,43 14,367 37,556 36,855 32,273 28,792 25,24 22,982 26,887 Total investments and other assets 28,765 33,618 32,63 25,522 56,549 68,981 48,851 49,869 5,718 51,17 55,221 Foreign currency translation adjustments 1,94 Property, plant and equipment Land 1,36 13,678 17,163 16,554 19,698 19,98 19,718 19,577 18,351 18,15 2,495 Buildings 56,949 73,847 81,527 89,795 16, ,586 11,95 18, , , ,318 Machinery and equipment 38,555 46,967 62,777 67,52 84,67 95,615 97,937 92,379 9,497 94,764 96,547 Construction in progress 2,54 4, ,139 2,48 2,552 1,786 2,216 6,62 Total property, plant and equipment 18, , , , , , ,85 223, , , ,422 Accumulated depreciation (42,188) (51,774) (69,472) (77,2) (87,19) (1,737) (111,474) (114,437) 123, , ,492 Net property, plant and equipment 66,126 86,899 92,92 97, , , ,611 18,789 98,416 94,738 14,93 Total assets 387,77 493,6 414,93 499, , , ,91 561, ,32 663,243 77,514 Notes: 1. Certain items of financial statements were reclassified for Accordingly, prior data has been restated to conform with the new presentation. 2. From 2, the Company adopts tax-effect accounting. 3. Non-trade accounts receivable until 24 is included in the trade notes and accounts receivable. 4. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 5. From 26, the Company adopts Accounting Standard for Impairment of Fixed Assets.

17 15 ( Million ) Years ended March Liabilities and Net Assets Current liabilities Short-term borrowings and commercial paper 12,66 56,917 21,657 23,998 78,462 23,924 43,729 6, ,1 1,712 Current portion of long-term debt 17,919 9,358 1,536 32,699 2,97 26,387 37,44 21,754 35,476 24,5 8,5 Trade notes and accounts payable 46,49 48,734 36,235 62,574 87,35 41,53 48,279 78,9 7,472 75,842 96,847 Customer advances 42,97 33,811 21,957 Income taxes payable 15,514 18,818 1,488 11,843 41,44 1,663 3,645 3,273 13,357 22,895 45,657 Accrued employees bonuses 5,41 6,57 4,117 7,375 1,948 2,463 3,629 6,376 8,645 1,231 14,131 Accrued warranty expenses 13,16 12,219 14,114 Accrued expenses and other current liabilities 4,74 4,381 4,22 7,969 17,271 14,12 24,2 25,245 21,69 2,29 22,937 Total current liabilities 11,32 144,715 69,55 146, ,441 19,52 16,76 141,472 26,611 21, ,855 Long-term debt, less current portion 7,592 77,657 77,79 67, ,348 15,452 7,23 98,476 63, 38,5 3, Accrued pension and severance costs 7,28 8,362 9,344 11,581 29,87 32,984 36,392 38,275 36,382 38,751 4,686 Other liabilities ,576 1,34 1,74 3,662 1,751 2,743 4,162 Total liabilities 178,757 23, , , , , ,42 281,885 37, ,621 3,73 Minority interest ,595 3,947 4,411 4,722 Net assets Common stock 3,755 45,445 45,532 47,163 47,213 47,214 47,223 54,961 54,961 54,961 54,961 Capital surplus 53,823 68,57 68,594 7,225 7,275 7,276 7,285 78,23 78,23 78,79 78,347 Legal reserve 3,739 4,228 Retained earnings 119, , , , ,92 19, , , ,94 249, ,27 Treasury stock at cost (16) (25) (1,125) (1,661) (3,519) (5,15) (13,239) (13,23) (16,43) (15,117) (12,168) Total shareholders equity 449,167 Unrealized gains on securities 1,658 1,171 (59) 2,396 2,133 5,118 5,853 Deferred gains or losses on hedges (177) Foreign currency translation adjustments 2,734 3,738 1,229 (72) 997 3,921 5,333 Total valuation and translation adjustments 11,9 Share subscription rights 584 Minority interests 9,51 Total net assets 27, ,9 257, ,63 333,281 37, ,94 275,8 332, ,9 469,811 Total liabilities and net assets 387,77 493,6 414,93 499, , , ,91 561, ,32 663,243 77,514 Notes: 1. From 21, the Company adopts new accounting standards for retirement benefits. 2. Customer advances until 24 are included in other current liabilities. 3. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 4. From 26, the Company adopts Accounting Standard for Impairment of Fixed Assets. 5. From 27, the Company adopts Accounting Standard for Presentation of Net Assets in the Balance Sheets, Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

18 16 Consolidated Statements of Operations ( Million ) Years ended March Net sales 432, , ,82 44, ,88 417,825 46,58 529, ,71 673, ,975 Cost of sales 297,546 34, ,962 33, ,92 32,27 326,54 389, , , ,326 Gross profit 135,239 15,76 87, ,89 264, , ,4 14, , , ,649 Selling, general and administrative expenses 81,114 94,237 81,475 11,74 143, , , , ,93 114,29 128,67 Portion of enterprise taxes included in selling, general and administrative expenses 6,264 6,773 Operating income (loss) 54,124 56,522 6,383 35, ,86 (18,31) 1,119 22,28 63,983 75,73 143,979 Other income (expenses) 98 (462) (345) (6,127) (21,954) (4,69) (24,129) (7,344) (8,28) (375) 435 Interest and dividend income 99 1, Interest expenses (1,87) (1,64) (2,3) (1,96) (2,378) (1,96) (1,61) (1,326) (1,94) (687) (421) Other 1,59 (486) 76 (4,443) (2,245) (3,) (22,719) (6,218) (7,35) (192) (54) Income (loss) before income taxes 54,222 56,6 6,38 29,689 99,132 (22,919) (23,1) 14,936 55,775 75, ,414 Income taxes Current 24,247 26,51 4,167 14,545 5,589 2,612 4,86 5,18 15,54 29,189 6,132 Deferred (4,79) (13,49) (5,62) 13,726 1,16 (21,97) (2,352) (7,535) Minority interests Net income (loss) 29,975 3,9 1,866 19,848 62,12 (19,938) (41,554) 8,297 61,61 48,6 91,263 Notes: 1. Certain items of financial statements were reclassified for Accordingly, prior data has been restated to conform with the new presentation. 2. Enterprise taxes, which were included in selling, general and administrative expenses until 1998, are included in provision for income taxes from From 2, the Company adopts tax-effect accounting. 4. Some of the field engineering expenses of service related subsidiaries, which were previously included in selling, general and administrative expenses, are classified as cost of sales from From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 6. From 26, the Company adopts Accounting Standard for Impairment of Fixed Assets. 7. From 27, the Company adopts Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

19 Consolidated Statements of Cash Flows 17 ( Million ) Years ended March Cash flows from operating activities Income (loss) before income taxes 99,132 (22,919) (23,1) 14,936 55,775 75, ,414 Depreciation and amortization 21,679 26,294 27,374 24,963 21,463 19,17 18,82 (Increase) decrease in trade notes and accounts receivable (121,669) 131,251 (13,662) (61,789) 59,115 5,144 (58,352) (Increase) decrease in inventories (53,666) 28,359 (3,89) (5,326) (59,914) (5,467) (31,585) Increase (decrease) in trade notes and accounts payable 9,79 (34,166) 1,352 29,154 (7,44) 6,743 17,236 Income taxes paid (19,596) (43,848) (527) (6,961) (4,774) (19,525) (37,785) Other 34,969 (7,413) 24,757 12,96 5,125 (2,539) 1,549 Net cash provided by (used in) operating activities (29,442) 77,558 21,394 7, ,35 78,854 54,297 Cash flows from investing activities Payment for purchase of property, plant and equipment (39,155) (31,6) (7,28) (7,53) (8,68) (8,61) (25,154) Payment for acquisition of intangible assets (4,568) (5,39) (2,78) (3,2) (1,78) (2,611) (2,462) Payment for purchase of newly consolidated subsidiaries (18,867) Other ,538 2,186 3, ,323 Net cash used in investing activities (62,359) (35,789) (7,27) (8,544) (7,45) (1,537) (25,293) Cash flows from financing activities Increase (decrease) in debt 83,779 (51,682) (4,12) (8,624) (27,618) (34,439) (24,94) Dividends paid (4,733) (4,3) (1,395) (1,49) (3,743) (9,796) (12,843) Other (1,864) (1,52) (4,477) (238) (2,983) 815 3,28 Net cash provided by (used in) financing activities 77,182 (57,214) (9,884) (1,271) (34,344) (43,42) (34,719) Effect of exchange rate changes on cash and cash equivalents 391 (1,437) (341) 81 Net increase (decrease) in cash and cash equivalents (14,228) (16,881) 4,573 (1,332) 72,77 24,556 (5,634) Cash and cash equivalents at beginning of year 79,519 65,291 48,49 52,982 42,65 115,42 14,24 Effect of newly consolidated subsidiary 48 Cash and cash equivalents at end of year 65,291 48,49 52,982 42,65 115,42 14,24 134,39

20 18 Consolidated Quarterly Data ( Million ) Years ended March 31 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 15, , ,46 213, , ,31 63,738 1,966 92,37 131,81 96,993 14,199 Semiconductor Production Equipment 127, , ,3 183,64 91, ,958 44,938 76,895 71,276 15,95 75, ,72 FPD Production Equipment 16,515 9,53 16,53 18,552 14,248 19,687 14,65 16,23 Computer Network 2,33 3,811 3,39 4,65 4,384 4,23 3,34 5,32 3,335 4,792 3,95 5,971 Electronic Components 2,325 21,422 22,25 25,259 2,95 19,95 15,184 18,428 17,369 19,99 18,27 21,813 Other Cost of sales 94, ,664 11, ,714 78,575 94,373 46,959 82,364 66,273 88,894 66,915 14,459 Gross profit 56,265 61,65 71,7 76,38 38,247 41,928 16,779 18,62 26,35 42,187 3,78 35,74 Gross profit margin 37.3% 34.8% 39.% 35.6% 32.7% 3.8% 26.3% 18.4% 28.2% 32.2% 31.% 25.5% Selling, general and administrative expenses 28,962 33,853 36,7 44,378 37,66 3,581 31,643 33,981 32,176 35,544 31,61 33,6 Operating income (loss) 27,34 27,752 34,37 31, ,346 (14,865) (15,379) (6,141) 6,643 (1,523) 2,14 Operating margin 18.1% 15.7% 18.9% 14.8%.5% 8.3% (23.3%) (15.2%) (6.7%) 5.1% (1.6%) 1.5% Ordinary income (loss) 26,91 26,957 34,28 31, ,773 (14,77) (15,668) (6,745) 6,43 (1,854) 2,325 Ordinary profit margin 17.8% 15.2% 18.8% 14.6%.2% 7.9% (23.2%) (15.5%) (7.3%) 4.6% (1.9%) 1.7% Income before income taxes (loss) 24,989 23,764 32,71 18, ,858 (14,614) (2,54) (6,264) 5,565 (1,921) (2,39) Ratio of income before income taxes to net sales 16.6% 13.4% 17.6% 8.6%.8% 8.% (22.9%) (19.9%) (6.8%) 4.2% (2.%) (14.5%) Net income (loss) 15,241 14,178 19,967 12,626 (3,514) 6,99 (1,681) (11,843) (4,172) 1,634 (166) (38,851) Net income margin 1.1% 8.% 11.% 5.9% (3.%) 4.5% (16.8%) (11.7%) (4.5%) 1.2% (.2%) (27.7%)

21 19 ( Million ) Q 2Q 3Q 4Q 1Q 1H 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 87, , , ,2 28, ,49 26,12 16,16 173, ,59 195, ,25 211,358 21,94 251,319 65,32 16,913 96, ,17 26,64 12,5 149,77 113, ,275 14, ,54 125, ,98 158, ,891 87, , , ,2 21,14 25,266 28,757 23,915 19,123 16,663 21,475 28,933 23,636 26,24 22,174 3,398 5,245 3,815 5,99 7,357 3,123 5,486 3,19 5,89 3,289 5,929 3,1 5,439 3,858 6,863 18,769 21,142 2,62 23,698 45,137 18,68 22,432 18,63 23,36 2,274 24,698 21,42 24,12 21,142 22, ,67 98,54 91, ,889 23,497 16, ,39 113,513 13,41 1, ,9 124, ,46 136, ,4 21,171 35,98 29,773 54,113 76,73 42,418 56,793 46,53 42,721 44,918 55,589 54,44 64,952 73,943 79, % 26.3% 24.6% 28.9% 27.4% 28.4% 27.6% 29.1% 24,7% 31.% 28.4% 3.4% 3.7% 35.2% 31.6% 29,465 31,598 25,593 31,219 56,427 25,44 3,99 24,77 28,212 27,956 33,9 28,575 32,576 31,39 36,481 (8,294) 3,5 4,18 22,894 2,275 17,14 26,694 21,733 14,59 16,961 22,499 25,865 32,376 42,94 42,834 (9.4%) 2.6% 3.4% 12.2% 7.2% 11.4% 13.% 13.6% 8.4% 11.7% 11.5% 14.4% 15.3% 2.4% 17.% (8,741) 3,116 4,41 22,752 2,985 17,411 27,238 21,717 15,37 16,966 22,232 26,739 31,465 42,116 43,62 (1.%) 2.3% 3.3% 12.2% 7.5% 11.7% 13.2% 13.6% 8.7% 11.7% 11.4% 14.9% 14.9% 2.% 17.4% (9,1) 48 3,88 19,721 7,944 17,355 3,477 22,84 14,491 16,984 21,77 27,321 31,174 42,121 43,799 (1.3%).3% 3.1% 1.5% 2.8% 11.6% 14.8% 13.8% 8.4% 11.7% 11.1% 15.2% 14.7% 2.% 17.4% (1,366) 56 2,751 15,352 1,273 13,41 46,928 13,238 1,741 1,148 13,879 16,282 2,943 26,988 27,5 (11.8%).4% 2.3% 8.2%.5% 9.% 22.8% 8.3% 6.2% 7.% 7.1% 9.1% 9.9% 12.8% 1.8% Notes: 1. Sales of FPD production equipment until 24 are included in the sales of semiconductor production equipment. 2. From 25, the Company made the following two changes in accounting policies for semiconductor and FPD production equipment: (1) a change of the timing of revenue recognition from at the time of shipment to at the time of confirmation of set-up and testing of products and (2) booking of accrued warranty expenses, based on estimate, for after-sale repair expenses incurred during the warranty period, which were previously reported at the time of expenditure. 3. As changes in accounting policies were made in the second quarter (2Q) of 25, aggregate figures for the first quarter (1Q) and the second quarter (2Q) of 25 are provided. 4. From 26, the Company adopts Accounting Standard for Impairment of Fixed Assets. 5. From 27, the Company adopts Accounting Standard for Director s Bonus, Accounting Standard for Stock Option, and Accounting Standard for Business Combination

22 2 Stock Information Stock Price Range ( ) 22, Note: Prices have been adjusted to reflect stock splits. 16,5 11, 5,5 (Calendar year ) I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV Years ended March High ( ) 4,2 8,67 6,63 18, 2,9 1,26 1,28 8,92 7,39 9,27 9,65 Low ( ) 2,545 3,92 2,755 6,8 6,24 3,82 3,87 4,7 5,11 5,35 6,98 Note: Prices have been adjusted to reflect stock splits. PER (Times) High Low PBR (Times) High Low PCFR (Times) High Low Price / earnings ratio = Common stock price / Net income per share Price / book value ratio = Common stock price / Net assets per share Price / cash flow ratio = Common stock price / Cash flow per share I II III IV I Number of Shares Issued (Fiscal Year-End) Number of shares issued (Thousands) 15, , , ,66 175, , ,698 18,611 18,611 18,611 18,611 Market capitalization ( Billion) ,7.4 2, , , , ,13.5 1, ,488.2 Market capitalization = Closing stock price at fiscal year-end Number of shares issued Public Offering of Common Stock Public Offering of Common Stock Subscribed shares Issuing price Date of issue (Thousands) ( ) June 2, 198 4,131 1,54 July 1, , 4,73 October 16, , 3,5 May 6, ,55 June 23, , 4,15 November 15, , 3,233 Stock Splits Date of issue Ratio of distribution October 1, 198 1:1.25 October 1, :1.3 November 2, :1.3 February 1, :2. November 2, :1.2 November 15, :1.1 November 15, 199 1:1.2 May 2, :1.1

23 21 Equity-Linked Bonds As of March 31, 27 Date of issue Type Amount Coupon rate Expiry date Balance Exercise rate Exercise price June 8, 21 #5 unsecured bonds with warrants 5.5 billion.86% June 8, billion % 9,61 Major Shareholders (Top 1) As of March 31, 27 Name Shares (Thousands) Percentage The Master Trust Bank of Japan, Ltd. (Trust Account) 22, Japan Trustee Services Bank, Ltd. (Trust Account) 14, Tokyo Broadcasting System, Inc. 1, The Chase Manhattan Bank, N.A. London 6, The Dai-ichi Mutual Life Insurance Co. 4, Name Shares (Thousands) Percentage Japan Trustee Services Bank, Ltd. (Trust Account NO.4) 4, The Bank of Tokyo-Mitsubishi UFJ, Ltd. 3, 1.66 Trust & Custody Services Bank, Ltd.(Trust Account B) 2, BNP Paribas Securities(Japan) Ltd. 2, Calyon DMA OTC 2, Composition of Shareholders by Category Number of shareholders/ Number of shareholders/ Number of shareholders/ Number of shareholders/ Number of shareholders/ Category Shares (Thousands)/Composition Shares (Thousands)/Composition Shares (Thousands)/Composition Shares (Thousands)/Composition Shares (Thousands)/Composition Japanese financial institutions and securities companies , % , % 27 66, % 22 57, % , % Foreign institutions and others , % , % , % 6 9, % , % Japanese individuals and others 47,821 18, % 59,361 23, % 59,415 23, % 44,93 18,48 1.2% 39,837 16,247 9.% Other Japanese corporations ,49 8.8% 78 15, % , % ,37 6.6% 66 11, % Treasury stock 1 2,35 1.2% 1 2,22 1.1% 1 2,53 1.4% 1 2, % 1 1,813 1.% Total 49, ,698 1.% 6,873 18,611 1.% 6,857 18,611 1.% 46,272 18,611 1.% 41,289 18,611 1.% % 3.6% 1.7% 8.8% 4.5% 36.9% 12.9% 8.6% 1.2% 1.1% % 41.5% 13.2% 6.9% 1.4% 32.% 49.9% 1.2% 6.6% 1.3% 45.3% 38.1% 9.% 6.6% 1.% Japanese financial institutions and securities companies Foreign institutions and others Japanese individuals and others Other Japanese corporations

24 TOKYO ELECTRON LIMITED World Headquarters TBS Broadcast Center 3-6, Akasaka 5-chome Minato-ku, Tokyo , Japan Tel: Fax: URL: Investor Relations Corporate Communications Dept. Tel: Fax: Printed on 1% recycled paper. Printed in Japan PR45-133