TOKYO ELECTRON LIMITED

Announcement on Financial Forecast and Dividend Forecast Revision

The financial forecast and dividend forecast announced on May 13, 2011 have been revised based on recent business trend as follows.


1. Financial Forecast Revision

Consolidated financial forecast revision for the year ending March 31, 2012 (April 1, 2011 - March 31, 2012)

  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) 730,000 100,000 102,000 66,000 368.60
Revised forecast (B) 640,000 50,000 52,000 34,000 189.87
Change (B-A) △90,000 △50,000 △50,000 △32,000
Change ratio (%) △12.3 △50.0 △49.0 △48.5
Results for the year ended March 31, 2011 668,722 97,870 101,919 71,924 401.73


Reason for revision
Semiconductor device prices fell because of the effects of inventory adjustments of smartphones, tablet PCs, and other products, and semiconductor makers are rapidly restraining their capital investment. As a result, although no changes were made to the financial forecasts for the first half of the fiscal year, sales in the semiconductor production equipment segment in the second half are expected to fall below the previous prediction, and we have revised its consolidated financial forecasts for the full fiscal year announced on May 13, 2011.

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 13, 2011)
45.00 85.00 130.00
Revised forecast 45.00 22.00 67.00
Results for the year ending March 31, 2012
Results for the year ended March 31, 2011 38.00 76.00 114.00


Reason for revision
TEL’s dividend policy is to link dividend payments to business performance and earnings on an ongoing basis and the basic policy for returning profits to shareholders is to maintain a payout ratio of around 35% based on consolidated net income.
Although no changes were made to the dividend per share payable at the end of the second quarter, in conjunction with the revision of the consolidated financial forecast for the fiscal year, we have revised the dividend per share payable at the end of year as above.