TOKYO ELECTRON
Summary of Consolidated Financial Results for the First Quarter Ended June 30, 2020
(Japanese GAAP) | July 28, 2020 | |
Name of Listed Company: | Tokyo Electron Limited | Stock Exchange Listing: Tokyo |
Security Code: | 8035 | |
URL: | https://www.tel.com | |
Representative: | Toshiki Kawai, Representative Director, President & CEO | |
Contact: | Ken Sasagawa, Vice President of Accounting Dept. | |
Telephone: +81-3-5561-7000 |
Scheduled start date of dividends payment: -
Preparation of supplementary materials for the quarterly financial results: Yes
Quarterly earnings release conference: Yes (for investors and analysts)
Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Three Months Ended June 30, 2020 (April 1, 2020 to June 30, 2020)
(1) Consolidated Operating Results (Cumulative)
Note: Percentages indicate changes from the same period of the previous fiscal year.
Three months ended | ||||||||
June 30, 2019 | June 30, 2020 | |||||||
% | % | |||||||
Net sales (Millions of yen) | 216,421 | (26.8) | 314,823 | 45.5 | ||||
Operating income (Millions of yen) | 42,552 | (41.2) | 73,849 | 73.6 | ||||
Ordinary income (Millions of yen) | 44,591 | (40.7) | 75,089 | 68.4 | ||||
Net income attributable to owners of parent (Millions of yen) | 31,894 | (42.8) | 56,452 | 77.0 | ||||
Net income per share of common stock (Yen): | ||||||||
Basic | 195.68 | 362.98 | ||||||
Diluted | 194.72 | 360.87 | ||||||
Comprehensive income: | Three months ended June 30, 2020 : | 69,131 million yen, | 155.4% | |||||
Three months ended June 30, 2019 : | 27,071 million yen, | (50.0)% | ||||||
(2) | Consolidated Financial Position | |||||||
As of | ||||||||
March 31, 2020 | June 30, 2020 | |||||||
Total assets (Millions of yen) | 1,278,495 | 1,278,700 | ||||||
Total net assets (Millions of yen) | 829,692 | 848,360 | ||||||
Equity ratio (%) | 64.1 | 65.3 | ||||||
Equity: | 835,096 million yen (as of June 30, 2020) | |||||||
819,301 million yen (as of March 31, 2020) | ||||||||
2. | Dividends | |||||||
Year ended | Year ending | |||||||
March 31, 2020 | March 31, 2021 | |||||||
(Forecast) | ||||||||
1Q-end dividends per share (Yen) | - | - | ||||||
2Q-end dividends per share (Yen) | 246.00 | 306.00 | ||||||
3Q-end dividends per share (Yen) | - | - | ||||||
Year-end dividends per share (Yen) | 342.00 | 354.00 | ||||||
Annual dividends per share (Yen) | 588.00 | 660.00 | ||||||
Note: Revision to the dividends forecast most recently announced: None |
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TOKYO ELECTRON
3. Financial Forecasts for the Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)
Note: Percentages for year ending March 31, 2021 indicate changes from the previous fiscal year, and those for six months ending September 30, 2020 indicate changes from the same period of the previous fiscal year.
Six months ending | Year ending | |||
September 30, 2020 | March 31, 2021 | |||
(Cumulative) | ||||
% | % | |||
Net sales (Millions of yen) | 620,000 | 21.9 | 1,280,000 | 13.5 |
Operating income (Millions of yen) | 127,000 | 24.0 | 275,000 | 15.9 |
Ordinary income (Millions of yen) | 127,000 | 19.0 | 275,000 | 12.3 |
Net income attributable to owners of parent (Millions of yen) | 95,000 | 20.7 | 205,000 | 10.7 |
Net income per share (Yen) | 610.83 | 1,318.10 | ||
Note: Revision to the financial forecasts most recently announced: None |
Notes
(1) Changes in significant subsidiaries during the period
(Changes in specified subsidiaries associated with changes in scope of consolidation): None
- Adoption of special accounting methods for preparation of quarterly financial statements: Yes Please refer to "Notes" on page 11 for further information.
- Changes in accounting policies, changes in accounting estimates and restatements
- Changes in accounting policies along with changes in accounting standards: None
- Other changes of accounting policies besides the number 1 above: None
- Changes in accounting estimates: None
- Restatements: None
- Number of shares issued and outstanding (common stock)
- Number of shares issued and outstanding (including treasury stock)
As of June 30, 2020 : | 157,210,911 | shares | ||
As of March 31, 2020: | 157,210,911 | shares | ||
2. | Number of shares of treasury stock | |||
As of June 30, 2020 : | 1,683,324 | shares | ||
As of March 31, 2020: | 1,685,556 | shares | ||
3. | Average number of shares outstanding (Cumulative quarterly period) | |||
Three months ended June 30, 2020: | 155,526,131 | shares | ||
Three months ended June 30, 2019: | 162,993,433 | shares |
Note: The number of shares of treasury stock includes the Company's shares held by "Executive compensation Board Incentive Plan (BIP) trust"
and "share-delivering Employee Stock Ownership Plan (ESOP) trust". (471,898 shares as of June 30, 2020, 472,030 shares as of March 31, 2020) In addition, these Company's shares are included in the treasury stock which is deducted in calculating the average number of shares.
* Status of implementation of quarterly review procedures
This Summary of Consolidated Financial Results is outside the scope of external auditor's quarterly review procedures under the Financial Instruments and Exchange Act.
* Explanation of the appropriate use of financial forecast:
The financial forecasts and estimates in this Summary of Consolidated Financial Results are based on information available to the Company at the time of report issuance and certain assumptions judged to be reasonable by the Company, and therefore are not guarantees of future performance. Consequently, actual results may differ substantially from those described in this Summary of Consolidated Financial Results. Please refer to "1. Qualitative Information on Financial Results for the Current Quarter (3) Description of Financial Estimates Information such as Consolidated Financial Forecasts" on page 6.
The Company plans to hold an online conference for investors and analysts on July 28, 2020. Supplementary materials to be used at the conference will be posted on the Company's website.
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TOKYO ELECTRON
1. Qualitative Information on Financial Results for the Current Quarter
(1) Description of Operating Results
Although the global economy in the first quarter of the current fiscal year was impacted by the novel coronavirus (COVID-19) pandemic, in the electronics industry, where the Tokyo Electron (TEL) Group operates, investments have been made against the backdrop of expanding applications of information and communication technologies in the IoT, AI, and 5G. In addition, due to increased demand stemming from an increase in teleworking, online classes, use of video streaming services and so on, the market for semiconductor production equipment is expanding.
Under these circumstances, the consolidated financial results (cumulative) for the first quarter of the current fiscal year were net sales of 314,823 million yen (year-on-year growth of 45.5%), operating income of 73,849 million yen (year- on-year growth of 73.6%), ordinary income of 75,089 million yen (year-on-year growth of 68.4%), and net income attributable to owners of parent of 56,452 million yen (year-on-year growth of 77.0%).
The overview of each business segment is as described below.
(i) Semiconductor Production Equipment
DRAM and NAND flash memory market began to recover from the previous fiscal year, due to improvements in the balance between supply and demand as a result of the situation described above. Furthermore, capital investment in logic and foundry semiconductors has also continued, resulting in a solid market for semiconductor production equipment. Consequently, net sales to external customers in this segment for the first quarter of the current fiscal year were 303,772 million yen (year-on-year growth of 53.3%).
(ii) Flat Panel Display (FPD) Production Equipment
Capital investment for large-sized LCD panels for televisions has continued, and furthermore, capital investment for small to medium-sized OLED panels for mobile devices is expected to show signs of recovery in the future. Consequently, net sales to external customers in this segment for the first quarter of the current fiscal year were 11,013 million yen (year-on-year decrease of 39.6%).
(iii) Other
Net sales to external customers in this segment for the first quarter of the current fiscal year were 37 million yen (year-on-year decrease of 32.1%).
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TOKYO ELECTRON
(For reference)
Consolidated Operating Results | (Millions of yen) | ||||||||
FY 2020 | FY 2021 | ||||||||
Full Year | 1Q | 2Q | 3Q | 4Q | 1Q | ||||
Net Sales | 1,127,286 | 216,421 | 292,021 | 295,453 | 323,390 | 314,823 | |||
Semiconductor Production Equipment | 1,060,997 | 198,137 | 271,866 | 282,027 | 308,964 | 303,772 | |||
Japan | 159,141 | 32,534 | 41,024 | 35,944 | 49,637 | 49,150 | |||
North America | 205,772 | 28,550 | 58,893 | 61,033 | 57,294 | 42,343 | |||
Europe | 58,899 | 20,270 | 14,439 | 10,863 | 13,326 | 15,774 | |||
South Korea | 151,577 | 36,903 | 36,418 | 31,066 | 47,189 | 67,013 | |||
Taiwan | 256,401 | 48,333 | 48,713 | 76,228 | 83,127 | 50,926 | |||
China | 193,667 | 27,090 | 56,834 | 59,112 | 50,629 | 73,957 | |||
Southeast Asia | 35,537 | 4,454 | 15,542 | 7,778 | 7,761 | 4,605 | |||
FPD Production Equipment | 66,092 | 18,229 | 20,101 | 13,380 | 14,381 | 11,013 | |||
Other | 197 | 54 | 53 | 45 | 43 | 37 | |||
Operating Income | 237,292 | 42,552 | 59,901 | 64,710 | 70,128 | 73,849 | |||
Ordinary Income | 244,979 | 44,591 | 62,100 | 64,953 | 73,334 | 75,089 | |||
Net Income Attributable to Owners of Parent | 185,206 | 31,894 | 46,828 | 49,329 | 57,154 | 56,452 |
Note: Intersegment sales or transfers are eliminated.
-
Description of Financial Conditions
(i) Financial Conditions
Current assets at the end of the first quarter of the current fiscal year were 940,287 million yen, a decrease of 22,196 million yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 58,500 million yen in short-term investments included in securities, a decrease of 47,226 million yen in prepaid consumption tax, an increase of 42,749 million yen in cash and deposits, an increase of 21,920 million yen in inventories, and an increase of 15,875 million yen in trade notes and accounts receivable.
Tangible fixed assets increased by 5,627 million yen from the end of the previous fiscal year, to 181,207 million yen. Intangible fixed assets increased by 247 million yen from the end of the previous fiscal year, to 11,169 million yen. Investments and other assets increased by 16,527 million yen from the end of the previous fiscal year, to 146,036 million yen.
As a result, total assets increased by 205 million yen from the end of the previous fiscal year, to 1,278,700 million yen. Current liabilities decreased by 18,279 million yen from the end of the previous fiscal year, to 364,299 million yen. This was largely due to a decrease of 28,276 million yen in income taxes payable, a decrease of 15,281 million yen in accrued employees' bonuses, and an increase of 27,448 million yen in customer advances.
Long-term liabilities decreased by 183 million yen from the end of the previous fiscal year, to 66,040 million yen.
Net assets increased by 18,667 million yen from the end of the previous fiscal year, to 848,360 million yen. This was largely due to an increase of 56,452 million yen in net income attributable to owners of parent, a decrease resulting from the payment of 53,351 million yen in year-end dividends for the previous fiscal year, and an increase of 12,348 million yen in net unrealized gains on investment securities. As a result, the equity ratio was 65.3%.
4
TOKYO ELECTRON
(ii) Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year increased by 14,245 million yen compared to the end of the previous fiscal year, to 262,204 million yen. The combined balance including 60,451 million yen in time deposits and short-term investments with maturities of more than three months that are not included in cash and cash equivalents was 322,656 million yen, a decrease of 15,750 million yen from the end of the previous fiscal year. The overall situation regarding cash flows during the first quarter of the current fiscal year was as described below.
Cash flows from operating activities were positive 52,784 million yen, a decrease of 6,682 million yen compared to the same period of the previous fiscal year. The major positive factors were 74,667 million yen in income before income taxes, a 47,247 million yen decrease in prepaid consumption tax, and a 27,283 million yen increase in customer advances. The major negative factors were 49,229 million yen in payment of income taxes, a 22,694 million yen increase in inventories, and a 15,830 million yen increase in trade notes and accounts receivable.
Cash flows from investing activities were positive 14,891 million yen compared to positive 66,452 million yen in the same period of the previous fiscal year. This was largely due to an inflow of 30,000 million yen due to a decrease in time deposits and short-term investments and the payment of 12,798 million yen for the purchase of fixed assets.
Cash flows from financing activities were negative 53,530 million yen compared to negative 99,994 million yen in the same period of the previous fiscal year. This was largely due to the payment of 53,351 million yen in dividends.
Consolidated Statements of Cash Flows (Summary) | (Millions of yen) | ||
Three months ended | Three months ended | ||
June 30, 2019 | June 30, 2020 | ||
Cash flows from operating activities | 59,466 | 52,784 | |
Income before income taxes | 44,572 | 74,667 | |
Depreciation and amortization | 6,081 | 7,152 | |
Decrease (increase) in trade notes and accounts receivable | 48,762 | (15,830) | |
Decrease (increase) in inventories | (29,534) | (22,694) | |
Increase (decrease) in trade notes and accounts payable | 945 | 880 | |
Other, net | (11,360) | 8,609 | |
Cash | flows from investing activities | 66,452 | 14,891 |
Decrease (increase) in time deposits and short-term investments | 75,000 | 30,000 | |
Other (Acquisition of fixed assets) | (8,547) | (15,108) | |
Cash flows from financing activities | (99,994) | (53,530) | |
Effect of exchange rate changes on cash and cash equivalents | (2,673) | 100 | |
Net increase (decrease) in cash and cash equivalents | 23,251 | 14,245 | |
Cash and cash equivalents at beginning of period | 232,634 | 247,959 | |
Cash and cash equivalents at end of period | 255,886 | 262,204 | |
Cash and cash equivalents, time deposits and short-term investments with maturities of | 340,886 | 322,656 | |
more than three months | |||
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TOKYO ELECTRON
(3) Description of Financial Estimates Information such as Consolidated Financial Forecasts
There are no changes in the consolidated financial forecast for the fiscal year ending March 31, 2021 from the forecasts released at the time of the previous announcement on June 18, 2020.
Note: The financial forecasts and estimates stated in this Summary of Consolidated Financial Results are based on certain assumptions judged to be reasonable by the Company in light of information currently available concerning economic conditions in Japan and overseas, fluctuations in foreign exchange rates, and other factors that may have an impact on performance. The company does not promise that the forecasts or estimates will be accurate.
They are therefore susceptible to the impact of many uncertainties, including market conditions, competition, the launching of new products (and their success or failure), and global conditions in the semiconductor related industry. Consequently, actual sales and profits may differ substantially from the projections described in this Summary of Consolidated Financial Results.
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TOKYO ELECTRON | ||
Consolidated Balance Sheets | ||
(Millions of yen) | ||
As of | As of | |
March 31, 2020 | June 30, 2020 | |
ASSETS | ||
Current assets | ||
Cash and deposits | 149,906 | 192,656 |
Trade notes and accounts receivable | 150,134 | 166,010 |
Securities | 188,500 | 130,000 |
Merchandise and finished goods | 267,625 | 278,614 |
Work in process | 69,514 | 75,370 |
Raw materials and supplies | 54,924 | 60,000 |
Others | 81,983 | 37,731 |
Allowance for doubtful accounts | (105) | (95) |
Total current assets | 962,484 | 940,287 |
Long-term assets | ||
Tangible fixed assets | 175,580 | 181,207 |
Intangible fixed assets | ||
Others | 10,921 | 11,169 |
Total intangible fixed assets | 10,921 | 11,169 |
Investments and other assets | ||
Others | 130,922 | 147,437 |
Allowance for doubtful accounts | (1,413) | (1,401) |
Total investments and other assets | 129,509 | 146,036 |
Total long-term assets | 316,011 | 338,413 |
Total assets | 1,278,495 | 1,278,700 |
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TOKYO ELECTRON | ||
Consolidated Balance Sheets | ||
(Millions of yen) | ||
As of | As of | |
March 31, 2020 | June 30, 2020 | |
LIABILITIES | ||
Current liabilities | ||
Trade notes and accounts payable | 95,938 | 96,977 |
Income taxes payable | 52,654 | 24,378 |
Customer advances | 135,326 | 162,774 |
Accrued warranty expenses | 14,534 | 14,158 |
Accrued employees' bonuses | 29,139 | 13,858 |
Other allowances | 2,492 | 816 |
Others | 52,493 | 51,336 |
Total current liabilities | 382,578 | 364,299 |
Long-term liabilities | ||
Other allowances | 110 | 110 |
Net defined benefit liabilities | 60,635 | 60,412 |
Others | 5,478 | 5,518 |
Total long-term liabilities | 66,224 | 66,040 |
Total liabilities | 448,802 | 430,340 |
NET ASSETS | ||
Shareholders' equity | ||
Common stock | 54,961 | 54,961 |
Capital surplus | 78,011 | 78,011 |
Retained earnings | 702,990 | 706,069 |
Treasury stock, at cost | (29,310) | (29,273) |
Total shareholders' equity | 806,652 | 809,768 |
Accumulated other comprehensive income | ||
Net unrealized gains (losses) on investment securities | 20,126 | 32,475 |
Net deferred gains (losses) on hedging instruments | (52) | (73) |
Foreign currency translation adjustments | (4,111) | (3,919) |
Accumulated remeasurements of defined benefit plans | (3,313) | (3,153) |
Total accumulated other comprehensive income (loss) | 12,648 | 25,327 |
Share subscription rights | 10,391 | 13,263 |
Total net assets | 829,692 | 848,360 |
Total liabilities and net assets | 1,278,495 | 1,278,700 |
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TOKYO ELECTRON | |||
Consolidated Statements of Income | |||
(Millions of yen) | |||
Three months ended | Three months ended | ||
June 30, 2019 | June 30, 2020 | ||
Net sales | 216,421 | 314,823 | |
Cost of sales | 126,537 | 186,325 | |
Gross profit | 89,884 | 128,497 | |
Selling, general & administrative expenses | |||
Research and development expenses | 25,692 | 30,142 | |
Others | 21,639 | 24,505 | |
Total selling, general and administrative expenses | 47,332 | 54,648 | |
Operating income | 42,552 | 73,849 | |
Non-operating income | |||
Dividend income | 434 | 737 | |
Foreign exchange gain | 1,043 | - | |
Others | 623 | 825 | |
Total non-operating income | 2,101 | 1,562 | |
Non-operating expenses | |||
Foreign exchange loss | - | 154 | |
Arrangement fee | - | 100 | |
Others | 62 | 67 | |
Total non-operating expenses | 62 | 322 | |
Ordinary income | 44,591 | 75,089 | |
Unusual or infrequent profit | |||
Gain on sales of fixed assets | 0 | 13 | |
Total unusual or infrequent profit | 0 | 13 | |
Unusual or infrequent loss | |||
Loss on disposal and sales of fixed assets | 19 | 435 | |
Total unusual or infrequent loss | 19 | 435 | |
Income before income taxes | 44,572 | 74,667 | |
Income taxes | 12,677 | 18,214 | |
Net income | 31,894 | 56,452 | |
Net income attributable to owners of parent | 31,894 | 56,452 |
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TOKYO ELECTRON
Consolidated Statements of Comprehensive Income
Net income
Other comprehensive income (loss)
Net unrealized gains (losses) on investment securities Net deferred gains (losses) on hedging instruments Foreign currency translation adjustments Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using the equity method
Total other comprehensive income (loss) Comprehensive income
(Breakdown)
Comprehensive income attributable to owners of parent
(Millions of yen) | |
Three months ended | Three months ended |
June 30, 2019 | June 30, 2020 |
31,894 | 56,452 |
749 | 12,340 |
98 | (8) |
(6,381) | 207 |
715 | 163 |
(4) | (24) |
(4,822) | 12,678 |
27,071 | 69,131 |
27,071 | 69,131 |
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TOKYO ELECTRON
Notes
Going concern: None
Significant changes in Shareholders' Equity: None
Changes in significant subsidiaries during the period: None
Adoption of special accounting methods for preparation of quarterly financial statements: Yes
The company and part of its consolidated subsidiaries calculate tax expenses by reasonably estimating the annual effective tax rate on income before income taxes after the application of tax effect accounting for the fiscal year, and applying this rate to income before income taxes for the current quarter under review.
Changes in accounting policies, changes in accounting estimates and restatements: None
11
TOKYO ELECTRON
Segment information
(i) General information about reportable segments
A reportable segment is a component or an aggregated component of TEL Group. For each of the components, discrete financial information is available and the operating result is regularly reviewed by management to make decisions about resources to be allocated to the segment and assess its performance.
The operation of TEL Group consists of segments by products and services based on business units (BUs), and TEL Group identifies as a reportable segment, "semiconductor production equipment (SPE)" and "flat panel display (FPD) production equipment". Products of the SPE segment consist of coater/developers, etch systems, deposition systems, cleaning systems, wafer probers used in the wafer testing process and other semiconductor production equipment. The SPE segment principally develops, manufactures, sells such products and provide services on them.
Products of the FPD production equipment segment consist of coater/developers, etch/ash systems used in the manufacture of flat panel displays and inkjet printing systems used in the manufacture of OLED panels. The FPD production equipment segment principally develops, manufactures, sells such products and provide services on them.
(ii) Net sales and profit or loss in reportable segments | ||||
Three months ended June 30, 2020 (April 1, 2020 to June 30, 2020) | (Millions of yen) | |||
Reportable Segments | ||||
Semiconductor | FPD Production | Others *1 | Total | |
Production | ||||
Equipment | ||||
Equipment | ||||
Net sales | 303,772 | 11,013 | 5,481 | 320,267 |
Segment profit (loss) | 83,776 | 522 | 197 | 84,496 |
Adjustments *2 | Consolidated *3 | |||
Net sales | (5,444) | 314,823 | ||
Segment profit (loss) | (9,828) | 74,667 |
Notes:
*1. "Others" includes all other operating segments which are not included in the reportable segments, including group-wide logistic services, facility maintenance and insurance.
*2. "Adjustments" for segment profit (loss) totaling (9,828) million yen mainly consists of research and development costs of (5,173) million yen pertaining to the fundamental research and element research of TEL and other general and administrative costs that do not belong to reportable segments.
*3. Segment profit (loss) is adjusted against income before income taxes in Consolidated Statements of Income.
-
Impairment losses on fixed assets and goodwill, etc. in reportable segments
Significant impairment losses related to fixed assets: None
Significant changes in goodwill amount: None
Significant gains on negative goodwill: None
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TEL - Tokyo Electron Ltd. published this content on 28 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2020 06:35:01 UTC