Presentations ( 1.2MB) - Tokyo Electron Limited (TEL)

2Q FY2013 (April 1, 2012 – September 30, 2012)
Financial Announcement
Agenda:
‣ 2Q FY2013 Consolidated Financial Summary
Yoshiteru Harada, Corporate Director, Executive Officer
‣ Revision of FY2013 Financial Estimates and Major Progress in this Fiscal Year
Hiroshi Takenaka, President & CEO
October 31, 2012
CORP IR/October 31, 2012

2Q FY2013 Consolidated Financial
Summary
2Q FY2013: July 1, 2012 - September 30, 2012
FY2013 : April 1, 2012 - March 31, 2013
Yoshiteru Harada
Corporate Director, Executive Officer
October 31, 2012
CORP IR/October 31, 2012

Results Highlights For the six months ended September 30, 2012
Net Sales ¥266.6B
- 13.1% on FY12/2H
(-18.3% on FY12/1H)
Operating income
Operating margin
¥12.2B
4.6%
- 48.3% on FY12/2H
(-66.9% on FY12/1H)
Net income ¥6.0B
- 39.5% on FY12/2H
(-77.2% on FY12/1H)
Cash and cash equivalents: Cash and deposits + Short-term investments, etc (Securities in B/S).
2
Corp IR/October 31, 2012

Profit and Loss
FY12 FY13 FY13
1H 2H 1H
1H Forecast
(7/30)
Net Sales 326.3 306.7 266.6 268.0
SPE 248.3 229.4 214.6 216.0
FPD/PVE 36.6 33.2 9.2 9.0
EC/CN 41.0 43.8 42.4 43.0
Others 0.2 0.2 0.2 -
113.5
97.9
85.6
Gross profit
-
(34.8%) (31.9%) (32.1%)
SG&A 76.6 74.3 73.4 -
Operating
income
36.8
(11.3%)
23.5
(7.7%)
12.2
(4.6%)
(Billions of Yen)
9.5
(3.5%)
Net income 26.6 10.0 6.0 6.0
EPS(yen) 148.85 56.20 33.99 33.49
1. SPE:Semiconductor Production Equipment, FPD/PVE:Flat Panel Display and Photovoltaic Panel Production Equipment, EC/CN:Electric Components and Computer Networks
2. Numbers shown in ( ): Profit ratios
3. Profit ratios are calculated using full amounts, before rounding.
3
Corp IR/October 31, 2012

Net Sales & Operating Margin
(Billions of Yen)
250
50%
200
150
31.4%
132.4
40%
30%
100
20%
50
0
2.2%
2.9
10%
0%
-50
FY11/2Q 3Q 4Q FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q
Net Sales 173.5 159.6 190.6 153.1 173.2 129.1 177.5 134.1 132.4
Operating
income
Gross profit
margin
Operating
margin
Net Sales
Operating income
Gross profit margin
Operating margin
24.0 25.8 29.7 23.0 13.7 6.0 17.4 9.2 2.9
34.3% 36.8% 35.3% 38.2% 31.8% 32.1% 31.8% 32.9% 31.4%
13.8% 16.2% 15.6% 15.1% 7.9% 4.7% 9.8% 6.9% 2.2%
-10%
4
Corp IR/October 31, 2012

Net Sales by Division
(Billions of Yen)
300
SPE Division
(Semiconductor Production
Equipment)
FPD/PVE Division
(FPD/PV Production
Equipment)
(Billions of Yen)
60
(Billions of Yen)
60
EC/CN Division
(Electronic Components,
Computer Networks)
100%
Composition
200
248.3
229.4
214.6
40
36.6
33.2
40
41.0
43.8
42.4
13 14 16
11 11
3
EC/CN
FPD/PVE
100
20
20
76 75
81
SPE
9.2
0
1H
FY12
2H
1H
FY13
0
1H
FY12
2H
1H
FY13
0
1H
FY12
2H
1H
FY13
0%
1H
FY12
2H
1H
FY13
5
Corp IR/October 31, 2012

SPE Sales by Region
Japan U.S. Europe
Korea
(Billions of Yen) (Billions of Yen) (Billions of Yen) (Billions of Yen)
100
100
100
100
50
50.3
32.5
20.2
50
53.5
61.2
55.7
50
30.9
18.3
23.4
50
37.8
70.8
38.6
0
1H
FY12
2H
1H
FY13
0
1H
FY12
2H
1H
FY13
0
1H
FY12
2H
1H
FY13
0
1H
FY12
2H
1H
FY13
(Billions of Yen) (Billions of Yen) (Billions of Yen)
100
100
100
50
0
Taiwan China S.E. Asia, Others Region Composition
44.1
1H
FY12
30.8
2H
58.7
1H
FY13
50
0
15.8
1H
FY12
9.5 11.8
2H
1H
FY13
50
0
15.6
1H
FY12
6.0 5.9
2H
1H
FY13
100%
50%
0%
6 3 3
4 6
6
13
18
27
15 31
13
22
20
1H
FY12
8
27
14
2H
18
11
26
9
1H
FY13
Others
China
Taiwan
Korea
Europe
U.S.
Japan
6
Corp IR/October 31, 2012

Segment Information
300
250
200
SPE
(Semiconductor Production Equipment)
248.3
20.2%
229.4
214.6
30%
25%
20%
60
45
30
FPD/PVE
(FPD/PV Production Equipment)
(Billions of Yen) (Billions of Yen) (Billions of Yen)
Sales
Segment income
Segment profit margin
36.6
Sales
Segment income
33.2
Segment profit margin
100%
75%
50%
60
50
40
EC/CN
(Electronic Components and Computer Networks)
41.7
Sales
Segment income
Segment profit margin
44.5
42.8
30%
25%
20%
150
16.9%
15%
30
15%
100
50
0
(50)
50.2
1H
FY12
2H
38.7
14.3%
30.7
1H
FY13
10%
5%
0%
-5%
15
0
(15)
(30)
8.0%
2.9
1H
FY12
9.2
(0.6) (3.3)
2H
-2.0%
1H
FY13
-36.5%
25%
0%
-25%
-50%
20
10
0
(10)
3.0%
2.4%
1.6%
1.2 1.0 0.6
1H
FY12
2H
1H
FY13
10%
5%
0%
-5%
1. R&D expenses such as fundamental research and element research are not included in above reportable segments.
2. Segment income is based on income before income taxes.
3. Profit ratios are calculated using full amounts, before rounding.
7
Corp IR/October 31, 2012

Orders, Order Backlog
(Billions of Yen)
250
200
150
100
118.7
75.0
50
0
FY11/2Q 3Q 4Q FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q
15.8
SPE Orders 150.2 128.6 155.8 112.6 73.5 144.9 106.4 76.0 66.9
FPD/PVE Orders 22.4 15.2 26.3 8.9 1.7 5.0 2.8 2.8 8.0
SPE
Order backlog
215.5 228.8 228.9 220.7 166.7 220.1 188.6 157.7 118.7
FPD/PVE
Order backlog
57.8 51.0 65.4 61.8 39.4 27.8 14.2 12.2 15.8
8
Corp IR/October 31, 2012

Orders by Region: SPE, FPD/PVE
(Billions of Yen)
200
172.7
182.1
150
143.8
121.6
150.0
109.3
100
75.2
78.8 75.0
50
0
FY11/2Q 3Q 4Q FY12/1Q 2Q 3Q 4Q FY13/1Q 2Q
Japan 17.3 22.2 43.9 25.0 16.3 14.9 11.7 10.0 16.3
U.S. 46.6 24.5 25.4 31.1 24.8 29.7 36.8 24.0 18.4
Europe 22.8 14.1 18.6 17.2 3.9 7.6 7.0 6.8 7.7
Korea 24.9 21.0 30.7 21.9 17.9 51.1 25.1 9.7 7.3
Taiwan 34.6 38.2 40.3 13.7 6.6 33.5 21.0 20.0 16.7
China, S.E. Asia,
Others
26.3 23.5 22.9 12.5 5.4 12.9 7.4 8.1 8.3
9
Corp IR/October 31, 2012

Balance Sheet
Assets
(Billions of Yen)
Liabilities & Net Assets
(Billions of Yen)
782.4 783.6
276.6 247.6
745.0
286.2
Cash & cash
equivalents
782.4 783.6
5.1 4.4
186.0 180.6
745.0
3.0
146.3
Debt
Other liabilities
131.2
150.3
94.9
Trade notes,
Accounts receivables
159.1 149.4 132.9
Inventories
591.2 598.6 595.6
Net assets
42.8 59.6 37.0
Other current assets
122.8 126.8
127.1
Tangible fixed assets
49.7 49.6 66.7
Other fixed assets
2011/9/30 2012/3/31 2012/9/30
2011/9/30 2012/3/31 2012/9/30
66.7 billion yen of other fixed assets as of 2012/9/30 includes 15.1 billion yen of goodwill on corporate acquisition, etc.
Cash and cash equivalents: Cash and deposits + Short-term investments, etc. (Securities in B/S).
10
Corp IR/October 31, 2012

Inventory Turnover and AR Turnover
(Billions of Yen)
(Days)
300
150
250
200
150
100
129
91
132
121
107 109
112
96
104 104
76
82
92
74
99
67
86
71
Net sales
Accounts receivable turnover
Inventory turnover
92
87
86
86 85
72
73
60
125
100
75
50
50
25
0
2Q
FY10
3Q 4Q 1Q
FY11
2Q 3Q 4Q 1Q
FY12
2Q 3Q 4Q 1Q
FY13
2Q
0
*Turnover days = Inventory or AR at the end of each quarter / last 12 months sales x 365
11
Corp IR/October 31, 2012

Cash Flow
(Billions of Yen)
FY2012
FY2013
1H 2H 1H
Cash flow from operating activities 26.7 3.0 73.9
Cash flow from investing activities -72.4 64.1 -84.2
Payment for corporate acquisition - - -15.8
Payment for purchase of property,
plant, equipment and others
-16.9 -22.3 -12.6
Term deposits over 3 months -55.4 86.4 -55.7
Cash flow from financing activities -16.7 -10.5 -6.4
Cash and cash equivalents
at end of term
101.1 158.7 141.6
Cash and deposits at end of term
(Short-term investments, etc. included)
276.6 247.6 286.2
12
Corp IR/October 31, 2012

Supplement Data
CORP IR/October 31, 2012

Profit and Loss
FY2012
FY2013
(Billions of Yen)
1Q 2Q 3Q 4Q 1Q 2Q
Net Sales 153.1 173.2 129.1 177.5 134.1 132.4
SPE 120.8 127.5 91.5 137.8 108.7 105.9
FPD/PVE 12.5 24.1 16.6 16.5 4.7 4.4
EC/CN 19.6 21.3 20.8 22.9 20.6 21.8
Others 0.0 0.1 0.0 0.1 0.1 0.1
Gross profit
58.4 55.0 41.4 56.4 44.1 41.5
(38.2%) (31.8%) (32.1%) (31.8%) (32.9%) (31.4%)
SG&A 35.3 41.3 35.3 38.9 34.8 38.6
Operating
23.0 13.7 6.0 17.4 9.2 2.9
income
(15.1%) (7.9%) (4.7%) (9.8%) (6.9%) (2.2%)
Income before
income taxes
23.4 15.8 6.7 14.6 11.2 4.3
Net income 16.6 10.0 0.7 9.3 5.7 0.3
EPS(yen) 92.91 55.95 4.21 51.98 31.93 2.07
R&D expenses 18.1 22.9 18.7 21.6 17.9 19.4
1. SPE:Semiconductor Production Equipment, FPD/PVE:Flat Panel Display and Photovoltaic Panel Production Equipment, EC/CN:Electric Components and Computer Networks
2. Numbers shown in ( ): Profit ratios
3. Profit ratios are calculated using full amounts, before rounding.
14
Corp IR/October 31, 2012

Net Sales by Division
SPE Division
(Semiconductor Production
Equipment)
FPD/PVE Division
(FPD/PV Production
Equipment)
(Billions of Yen) (Billions of Yen) (Billions of Yen)
200
30
30
EC/CN Division
(Electronic Components,
Computer Networks)
100%
Composition
12
16 13 15 17
EC/CN
150
127.5
137.8
20
24.1
20
21.3 20.8
22.9
20.6 21.8
14
13
9 4 3
FPD/PVE
108.7
105.9
16.6 16.5
100
91.5
10
10
74 71
78 81 80
SPE
50
4.7 4.4
0
2Q
FY12
3Q 4Q 1Q
FY13
2Q
0
2Q
FY12
3Q 4Q 1Q
FY13
2Q
0
2Q
FY12
3Q 4Q 1Q
FY13
2Q
0%
2Q
FY12
3Q 4Q 1Q
FY13
2Q
15
Corp IR/October 31, 2012

SPE Sales by Region
Japan U.S. Europe
Korea
(Billions of Yen) (Billions of Yen) (Billions of Yen) (Billions of Yen)
60
60
60
60
50.2
30
29.4
16.6 15.8
10.0 10.1
30
23.8
28.6 32.6 26.6 29.1
30
16.9
9.5 8.7
10.4 12.9
30
20.9 20.6
24.2
14.4
0
2Q
FY12
3Q 4Q 1Q
FY13
2Q
0
2Q
FY12
3Q 4Q 1Q
FY13
2Q
0
2Q
FY12
3Q 4Q 1Q
FY13
2Q
0
2Q
FY12
3Q 4Q 1Q
FY13
2Q
(Billions of Yen) (Billions of Yen) (Billions of Yen)
60
60
60
30
0
Taiwan China S.E. Asia, Others Region Composition
19.4
2Q
FY12
9.6
21.1
29.3 29.4
3Q 4Q 1Q
FY13
2Q
30
0
6.6
2Q
FY12
3.9
5.6 5.6 6.1
3Q 4Q 1Q
FY13
2Q
30
0
10.2
2Q
FY12
2.5 3.5 2.3 3.5
3Q 4Q 1Q
FY13
2Q
100%
50%
0%
8
5
15
16
13
19 31
24
2Q
FY12
3
4
3
4
2
5
3
6
11 15
27
28
23
10
18
36
6 10
24
22 14
12
25 27
12 9 10
3Q 4Q 1Q
FY13
2Q
Others
China
Taiwan
Korea
Europe
U.S.
Japan
16
Corp IR/October 31, 2012

Segment Information
180
150
120
90
127.5
SPE
(Semiconductor Production Equipment)
91.5
137.8
108.7 105.9
60%
50%
40%
30%
40
30
20
24.1
FPD/PVE
(FPD/PV Production Equipment)
(Billions of Yen) (Billions of Yen) (Billions of Yen)
Sales
Segment income
Segment profit margin
Sales
Segment income
16.6 16.5
Segment profit margin
100%
75%
50%
30
25
20
15
EC/CN
(Electronic Components and Computer Networks)
Sales
Segment income
21.7 21.1
23.4
Segment profit margin
20.8 22.0
60%
50%
40%
30%
60
20%
10
4.7 4.4
25%
10
20%
17.2%
14.9%
18.2%
15.5%13.2%
-10%
30
0
(30)
21.9
13.6
25.1
16.7 13.9
2Q
FY12
3Q 4Q 1Q
FY13
2Q
10%
0%
0
-10
-20
8.6% 3.7%
2.0 0.6 (1.2) (1.6) (1.6)
0%
2Q 3Q 4Q 1Q 2Q
FY12
FY13
-7.7%
-25%
-35.3% -37.7%
-50%
5
0
(5)
2.4% 1.9% 2.9% 2.2%
0.5 0.3 0.6 1.0%
0.2 0.4
2Q
FY12
3Q 4Q 1Q
FY13
2Q
10%
0%
-10%
1. R&D expenses such as fundamental research and element research are not included in above reportable segments.
2. Segment income is based on income before income taxes.
3. Profit ratios are calculated using full amounts, before rounding.
17
Corp IR/October 31, 2012

Balance Sheet
Assets
Liabilities & Net Assets
(Billions of Yen)
(Billions of Yen)
782.4 769.2 783.6
767.0
745.0
782.4 769.2 783.6
767.0
5.1
7.1
4.4 4.5
745.0
3.0
Debt
276.6 249.4
247.6
252.6
286.2
Cash & cash
equivalents
186.0 178.8
180.6 166.1 146.3
Other liabilities
131.2
128.1 150.3 123.5
94.9
Trade notes,
Accounts receivables
159.1
163.5 149.4 144.1
132.9
Inventories
591.2 583.1 598.6 596.3 595.6
Net assets
42.8 55.5 59.6
122.8 124.5 126.8
49.1 37.0
129.3 127.1
Other current assets
Tangible fixed assets
49.7 47.9 49.6 68.1 66.7
2Q
FY12
3Q 4Q 1Q
FY13
2Q
Other fixed assets
2Q
FY12
3Q 4Q 1Q
FY13
66.7 billion yen of other fixed assets as of 2QFY13 end includes 15.1 billion yen of goodwill on corporate acquisition, etc.
Cash and cash equivalents: Cash and deposits + Short-term investments, etc. (Securities in B/S).
2Q
18
Corp IR/October 31, 2012

Cash Flow
(Billions of Yen)
FY12
FY13
2Q 3Q 4Q 1Q 2Q
Cash flow from operating activities 8.6 -4.9 7.9 35.8 38.0
Cash flow from investing activities -13.7 53.3 10.8 -46.0 -38.1
Payment for corporate acquisition - - - -15.8 -
Payment for purchase of property,
plant, equipment and others
-12.2 -14.1 -8.1 -9.2 -3.4
Term deposits over 3 months -1.4 67.4 19.0 -21.0 -34.7
Cash flow from financing activities -2.5 -7.7 -2.8 -4.8 -1.5
Cash and cash equivalents
at end of term
101.1 141.4 158.7 142.8 141.6
Cash and deposits at end of term
(Short-term investments, etc. included)
276.6 249.4 247.6 252.6 286.2
19
Corp IR/October 31, 2012

Revision of FY2013 Financial Estimates
and Major Progress in this Fiscal Year
Hiroshi Takenaka, President & CEO
October 31, 2012
CORP IR/October 31, 2012

Business Environment
CORP IR/October 31, 2012

Business Environment (As of October 2012)
► SPE Capex
PC and smartphone demand is lower than expected due to a slow
macroeconomic environment. Demand from foundries is relatively firm, but
the wafer fab equipment market is expected to decline by around 20% YoY
in CY2012 and full recovery is not expected until spring CY2013 or beyond.
► FPD Capex
The supply/demand balance for large TV panels is improving, but demand
for new equipment is not expected to recover until the second half of next
year or later. Mid- and small-sized panels are likely to be the main source of
equipment demand for the time being.
► PV Capex
Excess production capacity for crystalline PV panels is being adjusted,
current capex is expected to remain sluggish.
22
Corp IR/October 31, 2012

Quarterly Orders
(Billions of Yen)
300
250
SPE Order
FPD/PVE Order
July-September/2012
SPE 66.9(-12%)
FPD/PVE 8.0(+186%)
Total: 75.0(-5%)
( ): change from April-June/2012
% is calculated using full amounts
200
150
100
50
0
00/7-9
10-12
01/1-3
4-6
7-9
10-12
02/1-3
4-6
7-9
10-12
03/1-3
4-6
7-9
10-12
04/1-3
4-6
7-9
10-12
05/1-3
4-6
7-9
10-12
06/1-3
4-6
7-9
10-12
07/1-3
4-6
7-9
10-12
08/1-3
4-6
7-9
10-12
09/1-3
4-6
7-9
10-12
10/1-3
4-6
7-9
10-12
11/1-3
4-6
7-9
10-12
12/1-3
4-6
7-9
23
Corp IR/October 31, 2012

SPE Orders by Application: Equipment only
100%
80%
60%
40%
20%
22
34 28 25 17 18 15 17 19
16 22 24 23
37
7 4 6
33
31 27
8 41
11 4
15
16 21 33 27 58 46 37
44
52
12
15 58 47 45 46 39
23
8 6
36
0 22 49 35
37 21
3
28 26 15
22
25
26 42
18
9
35 24
12 12 10 19 16
9 26 30 32 44
55 55 11 15 18 32
52
8
32 30 39 45
51
24
39
22 24 32 29
22 26 24 27 39 27 16
30 18 8
23 23 8
15 14
6 11 14 7 9
0%
05/10-12
06/1-3
4-6
7-9
10-12
07/1-3
4-6
7-9
10-12
08/1-3
4-6
7-9
10-12
09/1-3
4-6
7-9
10-12
10/1-3
4-6
7-9
10-12
11/1-3
4-6
7-9
10-12
12/1-3
4-6
7-9
Logic & others (MPU, System LSI, Others)
Logic foundry
Flash
DRAM
24
Corp IR/October 31, 2012

Revision of FY2013 Financial Estimates
CORP IR/October 31, 2012

Revision of FY2013 Financial Estimates
FY2012
FY2013
1H 2H Full year
Actual
New
estimates
New
estimates
Adjustments
Adjustments
YoY
change
Net sales 633.0 266.0 234.4 -27.6 501.0 -29.0 -21%
SPE 477.8 214.6 178.3 -21.7 393.0 -23.0 -18%
FPD/PVE 69.8 9.2 9.7 +0.7 19.0 +1.0 -73%
EC/CN 84.8 42.4 46.0 -7.0 88.5 -7.5 +4%
Others 0.4 0.2 0.2 0.5 +0.5 -
Operating income
Lower line:OP margin
Income before
income taxes
60.4
9.5%
12.2
4.6%
0.3
0.1%
-10.2
-3.9pts
12.5
2.5%
(Billions of Yen)
-7.5
-1.3pts
-47.9
-7.0pts
60.6 15.5 2.5 -10.5 18.0 -7.5 -42.6
Net income 36.7 6.0 1.0 -7.0 7.0 -7.0 -29.7
1. Adjustments: changes from the figures announced on July 30, 2012
2. NEXX Systems (acquisition completed on May 1) and FSI International (acquisition completed on October 11) financials are
reflected in above estimates .
Lowered SPE sales forecast due to weak investment
26
Corp IR/October 31, 2012

Key Items of Financial Revision
1. Fixed cost reduction: ¥16 billion from last FY
» Cost cuts centered on subcontractor, payroll and development
expenses (materials, etc.)
2. Dividend forecast
» Annual dividend of ¥51 including the commemorative dividend
3. Two acquisitions completed
Date acquisition
announced
Date acquisition
completed
Purchase
price
Goodwill
(Years of amortization)
NEXX Systems March 16, 2012 May 1, 2012 ¥15.8 billion ¥15.3 billion (10 years)*
FSI International August 13, 2012 October 11, 2012 ¥19.9 billion TBD
* Goodwill and years of amortization are provisional figures.
27
Corp IR/October 31, 2012

R&D Expenses, CAPEX, Depreciation
(Billions of Yen)
100
75
50
R&D Expenses
66.0
60.9
54.0
70.5
81.5
74.0
(Billions of Yen)
80
60
40
設 CAPEX 備 投 資
減 価 償 却 費
Depreciation
• New Miyagi plant
• New Miyagi plant
• TEL Technology Center Tsukuba
• Kunshan (China) plant
• TEL Technology Center Korea
39.1 39.5
25
20
22.7
21.4 23.0
18.1 20.0
14.9
17.7
24.1
26.0
22.0
0
FY08 FY09 FY10 FY11 FY12 FY13(E)
Revised
0
FY08 FY09 FY10 FY11 FY12 FY13(E)
Revised
R&D Expenses: 79.0B to 74.0B yen (revised)
CAPEX: 24.0B to 22.0B yen (revised)
Depreciation: 28.0B to 26.0B yen (revised)
28
Corp IR/October 31, 2012

Major Progress in this fiscal year
CORP IR/October 31, 2012

Progress in the SPE Business
(areas of enhancement)
► Etching systems
‣ Dielectric etch
Maintained high market share in logic BEOL and memory HARC process
‣ Poly etch
TEL successfully differentiated itself in the logic FEOL via RLSA etcher
-Newly secured six POR* in US and European markets
-Also introduced evaluation equipment to Asian customers
Expect to secure several new processes next FY and beyond.
FinFET
Tactras RLSA Etch
* POR (Process of Record): Approval to use equipment in customers’ semiconductor manufacturing processes.
30
Corp IR/October 31, 2012

Progress in the SPE Business
(areas of enhancement)
► Cleaning system
‣ Single wafer cleaning
-Confirmed process superiority in BEOL in customer evaluations
-Expect to obtain POR for several volume production in the
near future
‣ Dry cleaning
-Certas maintains high market share
Expect to expand applicable processes going forward through
the application of new materials
-Completed development of new platform with greatly
improved productivity. Preparations in place for 2013
market introduction
‣ Acquisition of FSI International (U.S.)
-Enhanced product line-up with FSI SPM* technology and
dry particle removal technology
CELLESTA TM
Certas
ORION
SPM (Sulfuric Acid & Hydrogen Peroxide Mixture ) treatment technology: A technique to remove impurities and
photoresist by mixing sulfuric acid and hydrogen peroxide and further heating.
31
Corp IR/October 31, 2012

Acquired FSI International
• Acquisition completed on October 11, 2012
• Purchase price: ¥19.9 billion
Aims of the FSI acquisition
‣ Enhance single wafer cleaning: Acquire next generation technology needs
‣ Complementary benefits: Application/customers
‣ Expand product line-up
Batch Single wafer Scrubber
WET WET DRY WET
EXPEDIUS CELLESTA ORION Certas ANTARES NS300
High temp SPM
Particle removal
Product line-up enhanced by complementary FSI products
32
Corp IR/October 31, 2012

SPE Business – other highlights
► Thermal processing system
► 3DI
• Customer evaluation progressed in high-performance ALD equipment
(NT333). Obtained POR for use in next generation memory
• Shipped TSV processing equipment to pilot lines of several customers
(Wafer bonder/debonder, Deep Si etch system, Dielectric liner deposition)
• Shipments of bonders for C-MOS sensors are strong
► Technology for the volume production of new
memory STT-MRAM (jointly developed with Tohoku University)
• Started development of a range of production equipment for volume
production from 2015
33
Corp IR/October 31, 2012

Progress made in the FPD/PV Business
► FPD production equipment
• Strengthened cost competitiveness
-Optimized scale by redeploying personnel
-Begun operation of Kunshan plant in China
• Began sales of large ICP etchers for high resolution LCD/OLED backplanes
‣ OLED production equipment
Market trends: Volume production of large panels for OLED TVs delayed
to 2014
TEL status: Started customer evaluation of ink jet system, in addition to
evaporation system
► PV production equipment
• Acquiring Oerlikon Solar: Have secured approval under all relevant
countries’ anti-trust laws. In negotiations for final closing of the deal.
34
Corp IR/October 31, 2012

Summary
1. PC and smartphone demand lower than expected, wafer fab
equipment market expected to be down around 20% YoY in
CY2012. Financial forecasts revised down as 2 nd half SPE sales
now expected to decelerate.
2. We will implement annual fixed cost reduction of 16 billion yen in
response to this environment change.
3. TEL aims to significantly enhance its technological competitiveness
by actively implementing R&D investment and necessary
acquisitions.
35
Corp IR/October 31, 2012

Disclaimer regarding forward-looking statement
Forecast of TEL’s performance and future prospects and other sort of information published
are made based on information available at the time of publication. Actual performance and
results may differ significantly from the forecast described here due to changes in various
external and internal factors, including the economic situation, semiconductor/FPD/PV market
conditions, intensification of sales competition, safety and product quality management, and
intellectual property-related risks.
Processing of numbers
For the amount listed, because fractions are rounded down, there may be the cases where the
total for certain account titles does not correspond to the sum of the respective figures for
account titles. Percentages are calculated using full amounts, before rounding.
Exchange Risk
In principle, export sales of Tokyo Electron’s mainstay semiconductor and FPD/PV cell
production equipment are denominated in yen. While some settlements are denominated in
dollars, exchange risk is hedged as forward exchange contracts are made individually at the
time of booking. Accordingly, the effect of exchange rates on profits is negligible.
FPD/PV: Flat panel display/Photovoltaic
36
Corp IR/October 31, 2012

Corp IR/October 31, 2012
37