TOKYO ELECTRON LIMITED

Announcement on Financial Forecast and Dividend Forecast Revision

The financial forecast and dividend forecast announced on May 12, 2010 have been revised based on recent business trend as follows.

1. Financial Forecast Revision

Consolidated financial forecast revision for the first six months of the fiscal year ending March 31, 2011(April 1, 2010 - September 30, 2010)

  Net sales
(Millions of yen)
Operating income
(Millions of yen)
Ordinary income
(Millions of yen)
Net income
(Millions of yen)
Net income
per share(yen)
Previous forecast (A) 315,000 33,000 34,000 22,000 122.91
Revised forecast (B) 325,000 40,500 42,000 30,000 167.60
Change (B-A) 10,000 7,500 8,000 8,000
Change ratio (%) 3.2 22.7 23.5 36.4
Results for the six months ended September 30, 2009 153,891 △21,620 △19,212 △16,161 △90.30


Consolidated Financial forecast revision for the year ending March 31, 2011 (April 1, 2010 - March 31, 2011)

  Net sales
(Millions of yen)
Operating income
(Millions of yen)
Ordinary income
(Millions of yen)
Net income
(Millions of yen)
Net income
per share(yen)
Previous forecast (A) 660,000 79,000 80,000 55,000 307.27
Revised forecast (B) 670,000 86,500 88,000 63,000 351.95
Change (B-A) 10,000 7,500 8,000 8,000
Change ratio (%) 1.5 9.5 10.0 14.5
Results for the year ended March 31, 2010 418,636 △2,180 △2,558 △9,033 △50.47


Reason for revision
In the midst of a moderate recovery in the global economy, we expect the trend towards recovery to continue with Asia at the center, even though some concerns remain in Europe and North America. In the semiconductor market, the demand for semiconductors is showing a sharp increase, and semiconductor manufacturers are also stepping up capital investment. Given these circumstances, we expect sales of semiconductor production equipment to increase in the first half of the current consolidated fiscal year, and for profits to improve compared to our earlier forecast. Accordingly, the company has revised its earlier forecast released May 12, 2010 of the consolidated financial results for the first half of the fiscal year as well as the entire fiscal year.


Note: The content of the financial forecast as described in this financial statement is based on certain reasonable assumptions, drawing on the information currently available such as the economic situation in Japan and throughout the world and other variable factors that have impact on the financial results of the Company.
These assumptions may be influenced by market conditions, competitive conditions, the introduction of new products and their success or failure, the global condition of the semiconductor industry and other uncertainties. Therefore, actual sales and profit may differ significantly from the forecast.

2. Dividend Forecast Revision

  Dividend per share
(Yen) 1Q-end 2Q-end 3Q-end Year-end Total
Previous forecast
(May 12, 2010)
25.00 37.00 62.00
Revised forecast 34.00 37.00 71.00
Results for the year ending March 31, 2011
Results for the year ended March 31, 2010 4.00 8.00 12.00


Reason for revision
The dividend policy of the Company is to link dividend payments to business performance and earnings on an ongoing basis. Its basic policy for returning profits to shareholders is to maintain a payout ratio of around 20% based on consolidated net income.
Therefore, in conjunction with the upward revision of the consolidated financial forecast for the first half of the fiscal year, we have revised the dividend per share payable at the end of the second quarter as above.