Oct 31, 2017

Announcement on Financial Forecast and Dividends Forecast Revision

Tokyo Electron (TEL) announced that the financial forecast and the dividends forecast announced on April 28, 2017 have been revised based on recent business trend as follows.

1. Financial Forecast Revision
Consolidated financial forecast revision for the fiscal year ending March 31, 2018 (April 1, 2017 - March 31, 2018)
  Net sales
(Millions of yen)
Operating income
(Millions of yen)
Ordinary income
(Millions of yen)
Net income attributable to owners of parent
(Millions of yen)
Net income per share
Previous forecast (A) 980,000 216,000 216,000 163,000 993.44
Revised forecast (B) 1,130,000 271,000 271,000 198,000 1,206.73
Change (B-A) 150,000 55,000 55,000 35,000

Change ratio (%) 15.3 25.5 25.5 21.5

Results for the year ended March 31, 2017 799,719 155,697 157,549 115,208 702.26

Reason for financial forecast revision
The consolidated financial forecast for the fiscal year ending March 31, 2018 (announced on April 28, 2017) has been revised in light of the fact that market conditions for semiconductor production equipment and FPD production equipment are expected to be brisk. Note that an unusual or infrequent loss of approximately 3 billion yen is expected to incur as a result of the Company’s decision to transfer a part of defined benefit pension plan to a defined contribution pension plan.

Note: The financial forecasts and estimates stated in this announcement are based on certain assumptions judged to be reasonable by TEL 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. TEL 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 stated in this announcement.

2. Dividends Forecast Revision

Dividend per share

(Yen) 1Q-end 2Q-end 3Q-end Year-end Total
Previous forecast
(April 28, 2017)
241.00 256.00 497.00
Revised forecast

328.00 605.00
Results for the year ending
March 31, 2018
Results for the year ended
March 31, 2017
128.00 224.00 352.00

The dividend policy of TEL is to link dividend payments to business performance on an ongoing basis. Its basic policy for returning profits to shareholders is to maintain a payout ratio of around 50% based on consolidated net income attributable to owners of parent. In conjunction with the revision of our consolidated forecasts, TEL has also revised our year-end dividends forecast per share as above.