tokyo electron corporate update...2020/02/03 · corp ir / 2020.02.03 6 us$ 1,994b us$ 475b us$ 59b...

CORP IR / 2020.02.03 1

February 3, 2020

Tokyo Electron

Corporate Update

CORP IR / 2020.02.03 2

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1. TEL Overview

2. TEL Initiatives for Medium-term Business Growth

3. Financial Model of Medium-term Management Plan and Growth Investment

4. FY2020 Business Environment and Financial Estimates

Appendix 1: Diversity of Semiconductor Technology and TEL’s Business Strategies

Appendix 2: Technical Challenges for Application and Effects of EUV Lithography Adoption

Appendix 3: Etch System

Appendix 4: Deposition System

Appendix 5: Cleaning System

Appendix 6: Financial Data

Contents

CORP IR / 2020.02.03 3

TEL Overview

CORP IR / 2020.02.03 4

Striving for

new growthDistributor of other suppliers’ products

Established development/

manufacturing functionsGlobalization Production reform

TEL is Innovative and Flexible to Market Change

0

300

600

900

1,200

1,500

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(E)

(Billion Yen)

(FY)

TEL consolidated net sales

Listed on TSE #2 in1980 and #1 in 1984 Strengthened corporate governanceEstablished first

manufacturing JV

(TEL-Thermco)Discontinued export business of

consumer productsBegan overseas direct operations

Semiconductor applications

Mainframe computer

Mobile phonePC

Consumer electronics, etc.

CORP IR / 2020.02.03 5

Financial Performance: Sales and Operating Margin

(Billion Yen)

4M DRAM oversupply • IT bubble crash

• Excessive logic foundry

investment

• Financial crisis in Asia

• 64M DRAM oversupply

• World financial crisis

• Memory oversupply

(FY)

• Effects of European debt crisis,

slowdown in emerging markets

• Weak demand for PC, mobile

723.8

906.0

668.7

497.2612.1613.1

663.9

799.7

1,130.7

1,278.2

1,110.0

16.7%

-4.4%

18.6%

-0.5%

14.6%

2.5%5.3%

14.4%17.6%

19.5%

24.9%24.3%

20.3%

-10%

0%

10%

20%

30%

40%

50%

-300

0

300

600

900

1,200

1,500

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20(E)

TEL Net sales

Operating income

Operating margin

CORP IR / 2020.02.03 6

US$ 1,994B

US$ 475B

US$ 59B

The Market TEL Participates in

¥1,166.7B, 91%

¥111.2B, 9%

¥0.1B, 0%

¥1,278.2B

CY2018 World Market

Electronic System

Semiconductor

WFE* CAPEX

Source: Gartner, “Forecast: Semiconductor Wafer Fab Manufacturing Equipment

(Including Wafer-Level Packaging), Worldwide, 1Q19 Update” Bob Johnson, 9 May 2019

Charts/graphics created by Tokyo Electron based on Gartner research.

Electronic System＝Electronic Equipment Production/Semiconductor＝Semiconductor

Revenue (Excluding Solar)/WFE* CAPEX＝Total Wafer Fab Equipment (including Wafer-

Level Packaging)

FY2019 TEL Sales(April 2018-March 2019)

FPD Production

Equipment

(FPD)

Semiconductor

Production

Equipment

(SPE)

Others

CORP IR / 2020.02.03 7

TEL Main Products World Market Share (CY2018)

Semiconductor Production Equipment

FPD Production Equipment (FY2019)

Source (FPD) : TEL survey

88%

30%38%

25%

Deposition System Cleaning SystemCoater/Developer Dry Etch System

47%

Wafer Prober*

27%40%

54%

ALD CVD Oxidation/Diffusion

29%

68%

FPD Coater/Developer FPD Etcher/Asher

Source

SPE (excluding Wafer Prober) : Gartner, “Market Share: Semiconductor Wafer Fab Equipment, Worldwide, 2018”, Bob Johnson,

Gaurav Gupta et al, 24 April 2019

Charts/graphics created by Tokyo Electron based on Gartner research.

Coater/Developer: Photoresist processing (Track), Dry Etch System: Dry etch, Deposition System: Tube CVD + Atomic layer

deposition tools + Oxidation/diffusion furnaces + Nontube LPCVD, ALD: Atomic layer deposition tools, CVD: Tube CVD + Nontube

LPCVD, Oxidation/Diffusion Furnaces : Oxidation/diffusion, Cleaning System: Single Wafer Processors + Wet stations +Batch Spray

processors + Other clean process

* SPE (Wafer Prober) : VLSI Research, April 2019

Charts/graphics created by Tokyo Electron based on VLSI Research

CORP IR / 2020.02.03 8

World Top 10 SPE Makers

CY2018 Revenue Ranking

14.01

12.81

10.91

10.87

4.24

2.57

2.22

1.49

1.48

1.40

Applied Materials

ASML

Tokyo Electron

Lam Research

KLA-Tencor

Advantest

Screen SemiconductorSolutions

Teradyne

KOKUSAI ELECTRIC

Hitachi High-Technologies

(Billions of US$)

SCREEN

Semiconductor Solutions

Source: VLSI Research, June 2019

CORP IR / 2020.02.03 9

Establish Environmental Medium-term Targets for 2030

9

Total CO2 emissions (vs 2018)Reduce per-wafer

CO2 emissions (vs 2013)

Equipment Facilities

Long-term goal (2050)

30%Reduce energy consumption at

each facility (per-unit basis)

(annual target, YoY)1%

As a leading corporation in environmental management, Tokyo Electron works actively to

conserve the global environment.

We strive to contribute to the development of a dream-inspiring society by proactively

promoting the reduction of environmental burden of both our facilities and products, and

at the same time, providing evolutionary manufacturing technologies that effectively

reduce the power consumption of electronic products.

20%

CORP IR / 2020.02.03 10

External assessments toward our activities

TEL ESG programs have received very positive reviews

TEL is included on several ESG-related indices

CORP IR / 2020.02.03 11

TEL Initiatives for Medium-term Business Growth

CORP IR / 2020.02.03 12

14/16nm 10nm 7nm 5nm

Logic

4X 6/7X 9X 12X

3D NAND

2Z 1X 1Y 1Z

DRAM

Rising Added-value in SPE

WFE investment (100k WSPM*, greenfield/TEL estimates)

~$7B~$8B

~$20B

* WSPM: Wafer starts per month

Expanding business opportunities for SPE manufacturers on arrival

of new applications and rising level of technological difficulty

CORP IR / 2020.02.03 13

Etch System Growth Scenario

Focus on processes with growing SAM and aim to

capture a high SAM share

HARC process

– Increase sales by growing 3D NAND and DRAM SAM

and capturing new PORs

Patterning process

– Expand SAM share by offering production cost

reductions

Interconnect/contact process

– Maintain high market share with growing SAM and by

differentiating technology

Gas chemical etch process

– Increase sales by creating new markets

0

500

1000

1500

2000

2500

3000

3500

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

CY'17 CY'18 CY'19 CY'20 CY'21 CY'22

SAM (in dollars) HARC Patterning

Interconnect/contact Gas chemical etch

Sales targets by process type within

TEL’s SAM for etch systems** TEL forecasts. SAM shown on a dollar basis and sales on a yen basis

Aim for 30-35% SAM share within 5 years

CORP IR / 2020.02.03 14

Expand business by choosing the most

appropriate method among batch, semi-batch

and single wafer, and providing high value-

added technologies

In deposition technologies, which are becoming

increasingly advanced, accelerate development

of new materials and new deposition method by

leveraging our strengths. Aim for further growth

– Deposition of new metal material to achieve lower

resistance

– New deposition methods to promote scaling, such

as anisotropic deposition and selective deposition

– Pre-treatment technology to realize better electric

characteristics

Deposition System Growth Scenario

Focus on high value-added deposition processes,

aim for 40%+ SAM share within 5 years

0

20000

40000

60000

80000

100000

120000

140000

160000

0.0

1.0

2.0

3.0

4.0

5.0

CY'17 CY'18 CY'19 CY'20 CY'21 CY'22

SAM (in dollars) DRAM NAND Logic/Foundry Others

Sales targets by application within

TEL’s SAM for deposition systems** TEL forecasts. SAM shown on a dollar basis and sales on a yen basis

Deposition System: Tube CVD + Atomic layer deposition tools + Oxidation/diffusion furnaces + Nontube LPCVD

CORP IR / 2020.02.03 15

Cleaning System Growth Scenario

Single wafer cleaning

– Grow sales with pattern collapse reduction

technology and by improving productivity

– Maintain a high market share for bevel wet etch

and expand applications through removal of new

materials

Batch cleaning

– Expand POR in 3D NAND critical processes

Scrubber cleaning

– SAM will grow as importance of back/bevel

processing increases due to introduction of EUV

Aim for 30% SAM share within 5 years

-10%

10%

30%

50%

70%

90%

110%

130%

150%

0.0

1.0

2.0

3.0

4.0

5.0

CY'17 CY'18 CY'19 CY'20 CY'21 CY'22

SAM (in dollars) Single wafer cleaning

Batch cleaning Scrubber

SAM share

25%

* TEL forecasts. SAM shown on a dollar basis and sales on a yen basis

Sales targets by system type within

TEL’s SAM for cleaning systems*

CORP IR / 2020.02.03 16

FPD Manufacturing Equipment Growth Scenario

Sales and operating margin(Billion yen)

Raise competitiveness of dry etch

system and coater/developer

Create inkjet market for large OLED

displays

Launch new products that reflect

evolution of displays

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

0

20

40

60

80

100

120

FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23

Sales Operating margin

Aim for 30% operating margin within 5 years

CORP IR / 2020.02.03 17

115.0150.0

188.8

250.0

93.0

101.099.4

130.0

0

FY'17 FY'18 FY'19 FY'20

FS sales

Grow SAM through increase in

installed units

(installed base of over 70,000 units)

Respond to new customer needs• 200mm renewal equipment

• Comprehensive contract services

Enhance business efficiency by

cooperating with Business Innovation

Project

Used equipment

and modification

Parts and services

Growth strategy key points

Field Solutions (FS) Sales Results and Growth Strategy

380.0B yen

208.0

251.0288.2

Leverage our strengths as an equipment manufacturer

to increase earnings in both the used equipment/modification

and parts/services segments

Target for

5 years hence

CORP IR / 2020.02.03 18

Financial Model of Medium-term Management Plan

and Growth Investment

CORP IR / 2020.02.03 19

New Financial Model (within 5 Years)

Increase corporate value through innovative technologies and groundbreaking proactive

solutions, raise efficiency and secure even higher profitability and resistance to market shifts

FY2019

(Actual)

FY2020

(Estimates)

Within 5 years

(Plan)

$59B $47 – 50B $55 – 60B $60 – 65B $65 – 70B

Net sales 1,278.2 1,110.0 1,500.0 1,700.0 2,000.0

SPE 1,166.7 1,035.0 -- -- --

FPD 111.2 74.8 -- -- --

Gross profitGross profit margin

526.141.2%

445.040.1%

650.043.3%

740.043.5%

890.044.5%

SG&A expensesSG&A expenses to sales ratio

215.616.9%

220.019.8%

252.016.8%

264.015.5%

290.014.5%

Operating incomeOperating margin

310.524.3%

225.020.3%

398.026.5%

476.028.0%

>600.0>30.0%

ROE 30.1% -- >30%

WFE market

(Billion yen)

CORP IR / 2020.02.03 20

Raise gross profit margin of core SPE, FPD products

– Timely introduction of new products to an expanding market

– Lower cost ratio through product quality improvements

Gross Profit, SG&A Expenses (Sales ¥2,000.0B Model)

FY2019

(Actual)

FY2020

(Estimates)

Within 5 years

(Plan)

Growth rate

(FY’19-FY’23)

Gross profit

Gross profit margin

526.141.2%

445.040.1%

890.044.5%

+69.1%+3.3pts

(Billion yen)

Proactively invest in growth areas while planning appropriate SG&A and

R&D expenses

FY2019

(Actual)

FY2020

(Estimates)

Within 5 years

(Plan)

Growth rate

(FY’19-FY’23)

SG&A expenses

SG&A expenses to sales ratio

215.616.9%

220.019.8%

290.014.5%

+34.5%-2.4pts

(Billion yen)

CORP IR / 2020.02.03 21

R&D Expenses, Capex Plan

39.5

21.7

12.7 13.1 13.3

20.6

45.649.7

56.0

40.0-50.0

24.1 26.6 24.820.8 19.2 17.8

20.624.3

33.0 35.0-37.0

0

20

40

60

FY’12 FY’13 FY’14 FY’15 FY’16 FY’17 FY’18 FY’19 FY’20 (E)

81.573.2 78.6

71.3 76.283.8

97.1

113.9123.0

0

50

100

150

FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 (E)

R&D expenses

Capex Depreciation

400.0B yen3 year total

(Billion Yen)

(Billion Yen)

Conduct proactive investment towards further growth

Enhancing development and production structures in growth areas

CORP IR / 2020.02.03 22

FY2020 Business Environment and Financial Estimates(FY2020: April 1, 2019-March 31, 2020)

CORP IR / 2020.02.03 23

FY2019 (April 2018 – March 2019) Highlights

Net sales +13% YoY driven by higher competitiveness in the growing SPE*1

market and expanded share in FPD*2

New record highs for gross profit, operating income and net income attributable to owners of parent

Net Sales and Gross Profit Margin

613.1 663.9799.7

1,130.7

39.6% 40.2% 40.3%42.0% 41.2%

0

400

800

1,200

FY'15 FY'16 FY'17 FY'18 FY'19

Net sales (¥B)

Gross profit margin

88.1116.7

155.6

281.1310.5

14.4%

17.6%19.5%

24.9%

24.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0

50

100

150

200

250

300

FY'15 FY'16 FY'17 FY'18 FY'19

Operating income (¥B)

Operating margin

Operating Income and Operating Margin

Net Income Attributable to

Owners of Parent and ROE

71.8 77.8

115.2

204.3

248.211.8% 13.0%

19.1%

29.0%

30.1%

0

50

100

150

200

250

FY'15 FY'16 FY'17 FY'18 FY'19

Net income attributable toowners of parent (¥B)

ROE

*1 SPE: Semiconductor production equipment *2 FPD: Flat panel display production equipment

1,278.2

CORP IR / 2020.02.03 24

►WFE*1 capex

We see CY2020 investment for logic/foundry continuing at last year’s high

level and expect memory investment to enter a recovery. We expect overall

investment to increase YoY

► FPD production equipment capex for TFT array process*2

In CY2020 we see capex rising by around 15% on expected increased

investment in G6 and G8.5 OLED (for mobile and TV, respectively), and

continued investment in G10.5 LCD

Business Environment (Outlook as of January 2020)

*1 WFE (Wafer fab equipment): The semiconductor production process is divided into front-end production, in which circuits are formed on wafers and inspected, and back-end production, in

which wafers are cut into chips, assembled and inspected again. Wafer fab equipment refers to the production equipment used in front-end production and in wafer-level packaging production.

*2 TFT array process: The processes of manufacturing the substrates with the electric circuit functions that drive displays

CORP IR / 2020.02.03 25

Logic/Foundry– Market environment: Maintaining high level of investment from CY2019, mainly in latest to

14nm generations

– Opportunities: Business expansion in more complex patterning processes

Non-volatile memory– Market environment: Price of memory began rising as inventory adjustments progressed.

Expect investment to resume in stages. Investment growing with transition from 9X to 12X

generation

– Opportunities: Differentiation through high value-added etch and clean

DRAM– Market environment: Price of memory stopped declining. Expect resumption of investment

after inventory normalizes in H1. Approx. 80% of capex to be for 1Y/1Znm generations

– Opportunities: Combined patterning in latest generation

CY’20 WFE Market and Business Opportunities by Application

Responding towards full scale recovery in WFE market

CORP IR / 2020.02.03 26SPE: Semiconductor production equipment, FPD: Flat panel display production equipment

FY2020 Financial Estimates (no change from Oct. 31, 2019 announcement)(Billion yen)

FY2019（Actual）

FY2020 (Estimates)

1st half 2nd half Full year Full year

YoY changeActual Estimates Estimates

Net sales 1,278.2 508.4 601.5 1,110.0 -13.2%

SPE 1,166.7 470.0 564.9 1,035.0 -11.3%

FPD 111.2 38.3 36.4 74.8 -32.8%


526.141.2%

204.540.2%

240.440.0%

445.040.1%

-81.1-1.1pts

SG&A expenses 215.6 102.0 117.9 220.0 +4.3


310.524.3%

102.420.2%

122.520.4%

225.020.3%

-85.5-4.0pts

Income before income

taxes 321.5 106.6 122.3 229.0 -92.5

Net income attributable to

owners of parent 248.2 78.7 91.2 170.0 -78.2

Net income per share (Yen) 1,513.58 490.18 - 1,074.47 -439.11

Progressing well towards financial estimates

CORP IR / 2020.02.03 27

FY2020 SPE Division New Equipment Sales Forecast

66%

33%32% 35%

26%18%

27%15%

24%

20%

22%

26%

26%18%

12%

130.6

198.4209.7

230.3

0

100

200

300

Q1(Actual)

Q2(Actual)

Q3(Actual)

Q4(Estimates)

Sales by application(Billion yen)

Logic foundry

Logic & others

DRAM

Non-volatile memory

Logic foundry +

Logic & others

Percentages on the graphs show the composition ratio of new equipment sales.

Field Solutions sales are not included.

Logic/foundry remains solid

Expect higher sales for memory next fiscal year

CORP IR / 2020.02.03 28

(Yen)Dividend per share

Dividend payout ratio: 50%

Annual DPS of not less than 150 yen

We will flexibly consider share buybacks

TEL shareholder return policy

We will review our dividend policy if the company does not generate

net income for two consecutive fiscal years

0

300

600

900

FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 (E)

143 yen

237 yen

Year-end

293 yen

624 yen

352 yen

758 yen

539 yen

Interim

246 yen

FY2020 Dividend Forecast

Revised year-end dividend forecast based on H2 share buyback

CORP IR / 2020.02.03 29

The share buyback announced in May 2019 was completed on December 31,

2019

– Total number of shares acquired: 8,392,000 shares

– Total cost of acquisition: 149,999,373,492 yen

Resolved to cancel 8,000,000 shares of treasury stock

– Represents 4.84% of issued shares

– Number of outstanding shares after the cancellation: 157,210,911 shares

– The 392,000 shares not cancelled are planned to be used for share

subscription rights as stock-linked compensation

Completion of Share Buyback/Decision to Cancel Shares

CORP IR / 2020.02.03 30

Appendix 1: Diversity of Semiconductor Technology

and TEL’s Business Strategies

CORP IR / 2020.02.03 31

180130 110 90

6545

3222

14

107

5

1

10

100

1000

1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020

Wavelength

Technology node

ArF

EUV

i-ArF

Scaling

KrF

Performance Enhancement through Scaling, Material

Development and 3D Structures

i-line

High AR of DRAM

3D NAND

Planar FET

FinFET

Nanowire FET

3D Architecture

[nm]

Architecture, design, process are also being actively investigated

Planar NAND

Planar FET

3D NAND large stack

CORP IR / 2020.02.03 32

Semiconductor Technology Roadmap

Future device systemsfor HPC/AI/IoT

Logic sub

Logic BEOLeMemory

HBM

Logic sub

Logic BEOL

Interposer

3D NAND

High AR TSV

High density RDL

RF/Analog

Capacitor for stable power supply

Low-k

Face-to-Face bonding

High dense TSV

Low energy

consumption

High productivity

SPE tool

Power device

for IoT

RF analog

for IoT

Demand for ultra-low power consumption technology

>2 TiersScalingMRAMReRAM

AI chip (Analog memory)

New architecture Higher-k capacitor Scaling (WL/BL)

DRAM

>2 TiersWL metal>150 layers

NAND

Logic

Ad-packageEUV doubleEUV singleAd-SAQP

Patterning

GAA Tr.*Contact metalBEOL structure Systemize technology by integrating chips - DRAM tower with via- Analog/NAND/Logic by stacking- Built-in AI (Analog memory) - Moore’s Law by package scaling

TEL forecasts

underarrayCMOS

* Gate-all-around transistor

CORP IR / 2020.02.03 33

Market Heading Towards Diversification

PC/Mobile systems

Moore’s LawImproved performance through

transistor integration

CustomizationMulti-functionality

Hyper-massPursuit of ultra-efficient productivity

Applications increase, production technology diversifies too

OS

CPU + Memory AI system

Communicationsystems

Healthcaresystems

Roboticsystems

Mobility systems

CORP IR / 2020.02.03 34

Maximize Utilization of TEL’s Comprehensive Strengths

Market-ing

Coater/

Developer Etch Deposition Cleaning Test

Sales

R&D Manu-facturing

FS

Strong next generation

product development

Process integration High quality

Robust supply chain

Largest installed

base in industry:

69,000 units

Advanced FS

Broad product coverage

Advanced data

collection and

analysis abilities

Customer trust

CORP IR / 2020.02.03 35

Continually Pursuing the Best Products and Best Service

Front-loadingAdvanced

field solutions

Business development leveraging industry’s largest installed

base of 69,000 units

TELeMetrics™ remote maintenance

Predictive maintenance with machine learning

Vision: A truly global company generating high added value and profits in the semiconductor and

FPD industries through innovative technologies and groundbreaking proactive solutions that

integrate diverse technologies

Share roadmap for next several generations with customers

Promote early engagement

Realize maximum yield of customer devices and equipment

availability from early stage of customers’ mass production and

reduce burden on the environment

Further increase investment in human resources/R&D by raising

operational efficiency and driving higher per-employee productivity

CORP IR / 2020.02.03 36

Appendix 2: Technical Challenges for Application

and Effects of EUV Lithography Adoption

CORP IR / 2020.02.03 37

DRAM Process Challenges at a Glance

Scaling increasingly difficult due to capacitor pitch

limitation

– Multi-patterning at Capacitor, WL, BL, STI levels

To scale capacitor EOT, high-k (ZrO2/Al2O/ZrO2)

dielectrics have been introduced with metal (MIM)

CMOS (periphery) portion moving to HKMG* &

FinFETs to reduce area

Capacitors will change from cylinders (dielectric

on outside and in center) to pillars (dielectric on

outside only) with thinner high-k for space saving

– Aspect ratio increases to >50:1 @D16 node

and continues to ~80:1

All aspects of high aspect ratio structure difficult to

fabricate (etch, film deposition, cleaning, …)

STI

Capacitor

Interconnects

Contact

Bitline

Buried gate

Conventional 6F2

cell structure

DRAM faces scaling, materials and integration challenges

* HKMG: High-k metal gate

CORP IR / 2020.02.03 38

NAND Process Challenges at a Glance Scaling is no longer limited by lithography. Rather, it is

limited by the number of ONON or OPOP device

layers one can stack for higher capacity

The high aspect ratio of the device structure is proving

to be more challenging for every new generation

CMOS (periphery) portion moving under memory to

reduce area creates a difficult thermal budget problem

Contact

Channel

Staircase

Word line isolation (Slit)

Gate

Photo image: TECHINSIGHTS

Etch and deposition of the multi-layering

progressively difficult as AR increases

2016 - 2017 2018 - 20192020 -

2021

2022 –

2023

# of 3D tiers 4X 6X 9X 12X 25X 51X

Hole CD (nm) 65 - 100 65 - 100 65 - 100 65 - 100 65 - 100 65 - 100

Holes between slits 4 4 4 - 8 8 8 8

Vertical pitch (nm) 50 - 70 40 - 60 40 - 60 40 - 50 40 - 50 40 - 50

Bitline CD (nm) 20 20 20 - 40 ~40 ~40 ~40

TEL forecasts

CORP IR / 2020.02.03 39

1

12

33 masks

Too close

Closer

Too far

1 mask

Cut

Three exposures: (Litho + Etch) x 3 Lower yield

Increased yield

Placement errors reduced

Cross section of

a logic structure

EUV

introduction

Conventional

exposure

Exposure using

EUV

11

11

Line

Space

Self-aligned multiple patterning (SAMP)

- high etch and dep usage

LELELE = (Litho-Etch)3

- limited etch and dep usage

Step 1: Line/Space

Step 2: Cut

One exposure: (Litho + Etch) x 1

Each exposure process

creates placement errors

Logic: Overcoming Technological Hurdles (Placement Errors)

with EUV

CORP IR / 2020.02.03 40

(Litho-etch)n Patterning for Logic MOL Contact/Cut Module

• PMD dep

• Hard mask1 dep

• Hard mask2 dep

• Lithography1

• Contact HM2 etch1 short etch time

• Lithography2


• Lithography3


• Contact HM1 etch short etch time

• Contact PMD etch long etch time

• Post etch clean

• Barrier metal Ti/TiN dep

• Contact plug W dep

• Contact plug W CMP

Lithography1 Lithography2 Lithgraphy3

Contact PMD etch

Contact HM2

etch1

Contact HM2

etch2

Contact HM2

etch3

Contact HM1 etch Contact plug W CMP

Thicker layer

Higher etch selectivity

(Litho-etch)3 patterning EUV lithography

Contact HM2

etch

(Litho-etch)n patterning

or

CORP IR / 2020.02.03 41

Self-aligned Multiple Patterning for Line/Space

Mandrel2 etch Sidewall1 dep Sidewall etch back1

Hard mask3 etch Mandrel1 etch Sidewall2 dep Sidewall etch back2

Hard mask1Hard mask2

Mandrel1Hard mask3Hard mask4Mandrel2Hard mask5

𝑝

• Had mask1 dep

• Hard mask2 dep

• Mandrel1 dep

• Hard mask3 dep

• Hard mask4 dep

• Mandrel2 dep

• Hard mask5 dep

• Lithography

• Hard mask5 etch

• Mandrel2 etch

• Sidewall1 dep

• Sidewall1 etch back

• Mandrel2 pull

• Hard mask4 etch

• Hard mask3 etch

• Mandrel1 etch

• Sidewall2 dep

• Sidewall2 etch back

1

2𝑝

SADP

SADP: Self-aligned double patterning

SAQP: Self-aligned quadruple patterning

1

4𝑝

SAQP

Lithography

Deposition

Etch

CORP IR / 2020.02.03 42

EUV adoption will solve sophisticated technological hurdles our customers

face (i.e. placement errors), bringing about quite positive effects on

semiconductor and SPE industries

– Advance miniaturization

– Accelerate customers’ investment in next generation technologies by enhancing the yield

Further miniaturization led by EUV will create more differentiation of our

products and business opportunities

– Increase our coater/developer market share even further

– Expand demand for etch, deposition and cleaning equipment

– Differentiate our product through advancing self-aligned patterning technology

– Expand business with process integration, leveraging our robust product lineup

Effects of EUV Lithography Adoption

CORP IR / 2020.02.03 43

Appendix 3: Etch System

CORP IR / 2020.02.03 44

HARC process

– SAM will increase due to advancement of 3D NAND

and DRAM scaling

Patterning process

– Multi-patterning will continue to be used, even after the

adoption of EUV for mass production, and SAM will

remain at high levels

Interconnect/contact process

– SAM will grow due to adoption of copper dual

damascene interconnects for DRAM and increasing

number of logic interconnects layers

Critical conductor process

– Stable investment will continue despite low SAM ratio


– Growth trend for SAM due to introduction of 3D

structures in devices

Etch System SAM Outlook

10.8

12.1

10.1

13.3

15.5 15.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

CY'17 CY'18 CY'19 CY'20 CY'21 CY'22

HARC Patterning Interconnect/contact

Critical conductor Gas chemical etch Others

*TEL forecasts

($B)

Etch system SAM by process type*

CORP IR / 2020.02.03 45

HARC process– 3D NAND (multi-level contact, word line isolation), DRAM (capacitor):

Continue to differentiate through process performance and productivity

– 3D NAND (channel): Launch new systems that can

differentiate by providing both precise process controllability

and even higher productivity

Patterning process– DRAM: Reduce customer production costs by combining

etch steps

– Logic: Differentiate through integration of etch and deposition

technologies

Interconnect/contact process– Apply knowledge cultivated in logic to DRAM


– Create a new market through plasma assist technology

Etch System Strategy

Word line

isolation (slit)Channel

Multi-level

contact

Capacitor

Interconnects

Isotropic etch

Nanosheet image:

Courtesy of IBM

Source: N. Loubet, et al., Stacked Nanosheet Gate-All-Around Transistor to Enable Scaling Beyond FinFET

CORP IR / 2020.02.03 46

Appendix 4: Deposition System

CORP IR / 2020.02.03 47

Deposition System SAM Outlook

Deposition system SAM by application*

4.5

5.0

3.9

5.2

5.86.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

CY'17 CY'18 CY'19 CY'20 CY'21 CY'22

NAND DRAM Logic/Foundry

NAND

– Investment for 3D NAND scaling will continue.

Particularly, demand for high quality dielectric film,

mainly with ALD, is increasing for high aspect ratio

step

DRAM

– Scaling will continue. Investment is expected in new

structures and materials to improve capacitor

performance

Logic/Foundry

– SAM ratio will decrease, but stable investment

expected. Continued demand for technological

innovation to suppress resistance increase in thin

wire

($B) * TEL forecasts

CORP IR / 2020.02.03 48

Dia: 20nm, AR = 50:1

To

pB

ott

om

Deposition Business Strategy

• Lower temperatures

• High-k dielectric film

• Capacitor electrode

DRAM 3D NAND• Channel silicon film

• Charge trap film

• Block high-k dielectric film

• Buried oxide film

• Buried silicon film

TELINDY PLUSTM Super Large Batch

100/125 150/175

NT333TM

N2

N2

Si precursor

Oxidation

Modification

Triase+™ EX-II ProTM TiN

S/C >95%

Gap-fill SiO2 Dep

Provide high value-added technology by leveraging our

advantage of having batch, semi-batch and single wafer

technologies

Vertical Furnace Semi-batch SystemSingle-wafer System

Equipmentstability

Improved productivity/coverage

Highertempera-

ture

Continuousthin film/

film qualityimprovement

AR ≃ 16:1

CORP IR / 2020.02.03 49

Appendix 5: Cleaning System

CORP IR / 2020.02.03 50

3.0

3.4

2.9

3.63.8

4.0

0.0

1.0

2.0

3.0

4.0

5.0

CY'17 CY'18 CY'19 CY'20 CY'21 CY'22

Single wafer cleaning Batch cleaning Scrubber cleaning

No significant changes to SAM ratios for

cleaning systems


– Will continue to be the largest market

– Technological innovation aimed at reducing

defects and improving etch/drying performance

will continue

Batch cleaning

– Demand will continue in the market for wet etch

for 3D NAND critical processes

Scrubber cleaning

– The importance of physical back/bevel cleaning

is increasing in pre-lithography process and

other areas

Cleaning System SAM Outlook

（$B）

Cleaning system SAM

by system type*

* TEL forecasts

CORP IR / 2020.02.03 51


– Bevel wet etch• Expect annual market growth rate of around 10%

• Contribute to improving customers’ yields.

Maintain a high market share by differentiating

through performance in precisely removing film from

the outer part of the wafer

– Prevent pattern collapseExpand market share by TEL original technology to

reduce collapse of high aspect ratio pattern

– Metal etchLaunched new dedicated SPM chambers for controlling

selectivity for metal in order to solve reduced yield

issues caused by dry etch damage and residue

Single Wafer Cleaning Strategy

Conventional drying

technologyNew drying technology

Pattern collapses occur No collapse

Metal etch process

Without bevel wet etch With bevel wet etch

W W W WTiN TiN

CORP IR / 2020.02.03 52

Batch and Scrubber Cleaning Strategy SiN etch process

Wafer back and defocus diagram

Wet

etch

Selectivity to SiO2

Uniformity Batch cleaning

– SiN etch and W etch processes for 3D NANDFocus on processes that require long durations

and advanced process technology. Differentiate by

realizing high uniformity, high selectivity and high

productivity in wet etch

Scrubber cleaning

– Pre-lithography processProvide high-value solutions such as reducing

particles brought in by wafers, contributing to the

improvement of exposure tool availability which

have grown increasingly important due to the

introduction of EUV

539

787

1 10

500

1,000

Nitride Oxide

Before

After

Total focus spot count (>50nm)

Small particles

Embedded particles Surface particles

CORP IR / 2020.02.03 53

Appendix 6: Financial Data

CORP IR / 2020.02.03 54

Financial Summary

FY2018 FY2019YoY

Change

(Reference)

FY2019 estimates

announced on

Oct. 31, 2018

Net sales 1,130.7 1,278.2 +13.0% 1,280.0SPE 1,055.2 1,166.7 +10.6% 1,169.8

FPD 75.0 111.2 +48.2% 110.0


475.042.0%

526.141.2%

+10.8%-0.8pts

528.041.3%

SG&A expenses 193.8 215.6 +11.2% 219.0Operating incomeOperating margin

281.124.9%

310.524.3%

+10.5%-0.6pts

309.024.1%

Income before income taxes 275.2 321.5 +16.8% 315.0Net income attributable to

owners of parent204.3 248.2 +21.5% 237.0

EPS (Yen) 1,245.48 1,513.58 +21.5% 1,445.13

R&D expenses 97.1 113.9 +17.4% 116.0

Capital expenditures 45.6 49.7 +9.1% 51.0

Depreciation and amortization 20.6 24.3 +18.0% 26.0

(Billion yen)

1. In principle, export sales of Tokyo Electron’s mainstay semiconductor and FPD 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.

2. Profit ratios are calculated using full amounts, before rounding.

SPE: Semiconductor production equipment, FPD: Flat panel display production equipment

CORP IR / 2020.02.03 55

93 91

7 9

0%

50%

100%

FY'18 FY'19

1,055.2

1,166.7

314.6 326.7

29.8%28.0%

0%

10%

20%

30%

40%

50%

60%

0

400

800

1,200

1,600

FY'18 FY'19

Segment Information

75.0

111.2

13.2

24.2

17.7%

21.8%

0%

10%

20%

30%

40%

50%

60%

0

40

80

120

160

FY'18 FY'19

SPE

FPD

SPE(Semiconductor Production Equipment)

FPD(Flat Panel Display Production Equipment)

(Billion Yen) (Billion Yen)

Composition of Net Sales

Sales

Segment income

Segment profit margin

Sales

Segment income


1. Segment income is based on income before income taxes.

2. R&D expenses such as fundamental research and element research are not included in above reportable segments.

3. Composition of net sales figures is based on the sales to customers.

CORP IR / 2020.02.03 56

(Billion Yen)

In FY2019 in memory, steady investment for

increasing production capacity and cutting-

edge technologies accompanied strong

demand for servers

In logic/foundry, investment continued for

the 14nm and subsequent generations

SPE Division: New Equipment Sales by Application

24%25% 21%

31%11% 10%

28%

40% 38%

17%

24%31%

550.3

814.6

888.7

0

400

800

1,200

FY'17 FY'18 FY'19

DRAM

Non-volatile memory

Logic foundry

Logic & others (MPU, AP, Others)

CORP IR / 2020.02.03 57

Sales grew in FY2019 in coater/developer

and etch systems

SPE Division: New Equipment Sales by Product

2% 1% 1%6% 6% 7%11%

10% 9%22%

23% 20%

34%

40% 40%25%

20%23%

550.3

814.6

888.7

0

400

800

1,200

FY'17 FY'18 FY'19

Coater/Developer

Etch system

Deposition system

Cleaning system

Wafer prober

Others

(Billion Yen)

CORP IR / 2020.02.03 58

115.0

150.0

188.8

93.0

101.0

99.4

208.0

251.0

288.2

0

100

200

300

FY'17 FY'18 FY'19

FY2019 sales were ¥288.2 billion,

+15% YoY. Parts sales especially grew

due to an increase in installed base and

comprehensive service contracts

Field Solutions Sales

Used equipment and modification

Parts and services

(Billion Yen)

* FY2017 sales figures have been rounded.

CORP IR / 2020.02.03 59

Financial Summary

FY2019 FY2020

Q3 Q4 Q1 Q2 Q3vs. Q2

FY2020

Net sales 268.1 319.0 216.4 292.0 295.4 +1.2%

SPE 239.5 288.7 198.1 271.8 282.0 +3.7%

FPD 28.5 30.1 18.2 20.1 13.3 -33.4%


109.740.9%

132.241.5%

89.841.5%

114.639.3%

117.539.8%

+2.5%+0.5pts

SG&A expenses 51.0 55.8 47.3 54.7 52.8 -3.4%


58.721.9%

76.424.0%

42.519.7%

59.920.5%

64.721.9%

+8.0%+1.4pts

Income before income taxes 60.5 79.8 44.5 62.0 64.6 +4.1%

Net income attributable to

owners of parent48.8 64.1 31.8 46.8 49.3 +5.3%

R&D expenses 26.5 30.0 25.6 31.2 29.8 -4.2%

Capital expenditures 11.8 14.9 7.6 22.0 13.2 -39.9%

Depreciation and amortization 6.2 7.3 6.0 6.7 7.6 +13.4%

(Billion Yen)

SPE: Semiconductor production equipment, FPD: Flat panel display production equipment

1. In principle, export sales of Tokyo Electron’s mainstay semiconductor and FPD 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.

2. Profit ratios are calculated using full amounts, before rounding.

CORP IR / 2020.02.03 60

239.5

288.7

198.1

271.8282.0

60.7

81.7

46.4

68.6 72.5

25.4%

28.3%

23.5%25.2% 25.7%

0%

10%

20%

30%

40%

50%

0

80

160

240

320

400

Q3FY'19

Q4 Q1FY'20

Q2 Q3

Segment Information

28.5 30.1

18.2 20.1

13.3

5.8 6.4

3.5 2.6 1.6

20.5% 21.2%19.2%

13.1% 12.6%

0%

10%

20%

30%

40%

50%

0

8

16

24

32

40

Q3FY'19

Q4 Q1FY'20

Q2 Q3

89 91 92 93 95

11 9 8 7 5

0%

50%

100%

Q3FY'19

Q4 Q1FY'20

Q2 Q3

SPE(Semiconductor production equipment)

FPD(Flat panel display production equipment)

Composition of Net Sales


Sales

Segment income


Sales

Segment income


SPE

FPD

1. Segment income is based on income before income taxes.

2. R&D expenses such as fundamental research and element research, etc. and other general and administrative expenses are not included in the above reportable segments.

3. Composition of net sales figures is based on the sales to customers.

CORP IR / 2020.02.03 61

SPE Division: Sales by Region

241.4

326.0

280.4

358.0

239.5

288.7

198.1

271.8 282.0

0

100

200

300

400

2017… 2018… 2018… 2018… 2018… 2019… 2019… 2019… 2019…

(Billion Yen)

Q3

FY’18

Q4 Q1

FY’19

Q2 Q3 Q4 Q1

FY’20

Q2 Q3

Japan 35.1 45.1 51.1 58.0 54.0 42.7 32.5 41.0 35.9

North America 29.1 33.9 28.4 45.9 22.7 34.7 28.5 58.8 61.0

Europe 19.6 25.0 17.7 31.3 18.6 25.3 20.2 14.4 10.8

South Korea 79.4 122.3 88.9 86.5 60.9 68.9 36.9 36.4 31.0

Taiwan 42.1 44.3 26.3 48.0 29.3 59.1 48.3 48.7 76.2

China 22.6 31.8 54.9 71.3 38.0 42.5 27.0 56.8 59.1

S. E. Asia, Others 13.2 23.4 12.7 16.8 15.6 15.2 4.4 15.5 7.7

CORP IR / 2020.02.03 62

SPE Division: New Equipment Sales by Application

29%

20%

30%

21%

25%

23%

27%

25%

38%

17%

22%

23%

18%

31%

32%

19%

12%

31%

32%

25%

16%

24%

34%

26%

22%

27%

27%

24%

17%

40%

16%

27%

DRAM

Non-volatile memory

Logic foundry

Logic & others

(MPU, AP, Others)

(Billion Yen)

Percentages on the graph show the composition ratio of new equipment sales. Field Solutions sales are not included.

25%

23%

27%

25%

38%

17%

22%

23%

18%

31%

32%

19%

12%

31%

32%

25%

16%

24%

34%

26%

22%

27%

27%

24%

17%

40%

16%

27%

25%

35%

8%

32%

26% 19% 17%23%

18%26% 33%

32% 35%

12% 10%4%

11%

9%

15%26%

18%27%41%

43%

49%

36%

45%

24%

15%

24%

20%21%

28%

30%

30%

28%

35%

26%

26%18%181.7

258.8

219.7

284.5

169.8

214.5

130.6

198.4209.7

0

50

100

150

200

250

300

Q3FY'18

Q4 Q1FY'19

Q2 Q3 Q4 Q1FY'20

Q2 Q3

CORP IR / 2020.02.03 63

Field Solutions Sales

62.1

70.0

63.2

76.1 72.5 76.369.6

75.8 74.6

0

20

40

60

80

Q3

FY’18

Q4 Q1

FY’19

Q2 Q3 Q4 Q1

FY’20

Q2 Q3

SPE Sales 59.7 67.2 60.6 73.4 69.6 74.2 67.4 73.4 72.2

FPD Sales 2.4 2.8 2.5 2.7 2.8 2.1 2.1 2.3 2.3

(Billion Yen)

CORP IR / 2020.02.03 64

109.5 115.6 117.2 120.2 128.49.9 9.0 8.8 9.3 9.5

142.2 150.0 151.9 166.8 173.255.4

89.0 53.0 42.9 62.0

368.2354.2 381.0 376.3

385.7

144.7146.9

96.3 111.8125.6

341.1392.6

340.8 339.9292.2

1,171.41,257.6

1,149.3 1,167.5 1,177.0

Q3FY'19

Q4 Q1FY'20

Q2 Q3

Balance Sheet

821.9888.1

819.3 803.1 780.1

349.5

369.5

330.0 364.4 396.8

1,171.41,257.6

1,149.3 1,167.5 1,177.0

Q3FY'19

Q4 Q1FY'20

Q2 Q3

Assets Liabilities & Net Assets


* Cash and cash equivalents: Cash and deposits + Short-term investments, etc. (Securities in B/S).

Liabilities

Net assetsOther current assets

Tangible assets

Intangible assets

Cash & cash

equivalents*

Inventories

Trade notes, accounts

receivables

Investment & other assets

CORP IR / 2020.02.03 65

Turnover days = inventory or accounts receivable at the end of each quarter / last 12 months sales x 365

Inventory Turnover and Accounts Receivable Turnover

295.4

54 52 46 43 40 42

29

37 41

117 111

117

96 102 101

116

125 125

0

40

80

120

160

0

100

200

300

400

Q3FY'18

Q4 Q1FY'19

Q2 Q3 Q4 Q1FY'20

Q2 Q3

(Billion Yen)

Net sales

Accounts receivable turnover

Inventory turnover

(Days)

CORP IR / 2020.02.03 66

Cash Flow

52.1

-17.7

-84.4

34.4

-120

-90

-60

-30

0

30

60

90

120

Q3

FY’18

Q4 Q1

FY’19

Q2 Q3 Q4 Q1

FY’20

Q2 Q3

Cash flow from operating activities 30.4 88.1 51.4 84.0 -11.0 65.0 59.4 81.7 52.1

Cash flow from investing activities*1 -15.2 -12.8 -12.1 -12.2 -1.1 -14.4 -8.5 -15.8 -17.7

Cash flow from financing activities -45.7 -0.0 -56.9 -5.0 -67.8 -0.0 -99.9 -65.4 -84.4

Free cash flow*2 15.1 75.3 39.3 71.7 -12.1 50.5 50.9 65.8 34.4

Cash on hand*3 301.2 373.8 355.5 423.7 341.1 392.6 340.8 339.9 292.2

*1 Cash flow from investing activities excludes changes in deposits with periods to maturity of over 3 months.

*2 Free cash flow = cash flow from operating activities + cash flow from investing activities excluding changes in deposits with periods to maturity of over 3 months.

*3 Cash on hand includes the total of cash + deposits with periods to maturity of over 3 months.

(Billion Yen)

Share repurchase

-43.2

-56.7-65.3

-0.0

-45.4

-39.0

CORP IR / 2020.02.03 67

Consolidated 10-year Financial Summary

* From FY2019, the Company adopts “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, revision on

February 16, 2018). “Total assets” and "equity ratio" for FY2018 have been restated in the table in accordance with the revised accounting standard.

(Millions of Yen) FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Net Sales 418,636 668,722 633,091 497,299 612,170 613,124 663,948 799,719 1,130,728 1,278,240

Semiconductor production

equipment262,391 511,331 477,873 392,026 478,841 576,242 613,032 749,893 1,055,234 1,166,781

FPD production equipment 71,361 66,721 69,888 20,160 28,317 32,709 44,687 49,387 75,068 111,261

PV production equipment 3,805 3,617

Computer network 84,473 90,216 84,867 84,664 100,726

Electronic components

Other 410 453 461 448 479 555 6,228 438 425 197

Gross profit 108,316 234,758 211,444 158,754 201,892 242,773 267,209 322,291 475,032 526,183

Gross profit margin 25.9% 35.1% 33.4% 31.9% 33.0% 39.6% 40.2% 40.3% 42.0% 41.2%

SG&A expenses 110,496 136,887 151,001 146,206 169,687 154,660 150,420 166,594 193,860 215,612

Operating income -2,180 97,870 60,443 12,548 32,204 88,113 116,788 155,697 281,172 310,571

Operating margin -0.5% 14.6% 9.5% 2.5% 5.3% 14.4% 17.6% 19.5% 24.9% 24.3%

Ordinary income 2,558 101,919 64,046 16,696 35,487 92,949 119,399 157,549 280,737 321,662

-7,767 99,579 60,602 17,766 -11,756 86,827 106,466 149,116 275,242 321,508

-9,033 71,924 36,725 6,076 -19,408 71,888 77,891 115,208 204,371 248,228

Depreciation and amortization 20,001 17,707 24,197 26,630 24,888 20,878 19,257 17,872 20,619 24,323

Capital expenditures 14,918 39,140 39,541 21,773 12,799 13,183 13,341 20,697 45,603 49,754

R&D expenses 54,074 70,568 81,506 73,248 78,663 71,349 76,286 83,800 97,103 113,980

Interest-bearing debt 5,105 7,996 4,402 3,756 13,531 ― ― ― ― ―

Equity 511,818 572,741 586,789 593,032 578,091 639,483 562,369 643,094 767,146 880,748

Total assets 696,351 809,205 783,610 775,527 828,591 876,153 793,367 957,447 1,202,796 1,257,627

Debt-to-equity ratio 1.0% 1.4% 0.8% 0.6% 2.3% ― ― ― ― ―

Equity ratio 73.5% 70.8% 74.9% 76.5% 69.8% 73.0% 70.9% 67.2% 63.8% 70.0%

ROE -1.8% 13.3% 6.3% 1.0% -3.3% 11.8% 13.0% 19.1% 29.0% 30.1%

48,284 83,238 29,712 84,266 44,449 71,806 69,398 136,948 186,582 189,572

9,613 -35,881 -8,352 -141,769 -19,599 155,737 -150,013 -28,893 -11,833 -84,033

-287 -5,236 -27,334 -10,625 -186 -18,213 -138,600 -39,380 -82,549 -129,761

-50.47 401.73 205.04 33.91 -108.31 401.08 461.10 702.26 1,245.48 1,513.58

12 114 80 51 50 143 237 352 624 758

10,068 10,343 10,684 12,201 12,304 10,844 10,629 11,241 11,946 12,742

Net income per share

Cash dividends per share

Number of employees

Income before income taxes

Net income attributable to owners of

parent

Cash flow from operating activities

Cash flow from investing activities

Cash flow from financing activities

CORP IR / 2020.02.03 68

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 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 panel 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.

Disclaimer regarding Gartner data (Page 6, 7)

All statements in this presentation attributable to Gartner represent Tokyo Electron’s interpretation of data, research opinion or

viewpoints published as part of a syndicated subscription service by Gartner, Inc., and have not been reviewed by Gartner. Each

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tokyo electron corporate update...2020/02/03 · corp ir / 2020.02.03 6 us$ 1,994b us$ 475b us$ 59b...

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