Announcement on Financial Forecast and Dividends Forecast
Tokyo Electron Ltd. (TEL) refrained from announcing the financial forecast and the dividends forecast for the fiscal year ending March 2017, in financial results for the fiscal year ended March 2016 that announced on April 26, 2016, in order to make in-depth business impact assessments of the 2016 Kumamoto earthquake. However TEL announced that its Board of Directors held on May 12, 2016 resolved the financial forecast and the dividends forecast for the fiscal year ending March 2017.
1. Financial Forecast Revision
Consolidated financial forecast revision for the first six months of the fiscal year ending March 31, 2017(April 1, 2016 - September 30, 2016)
| 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(Yen) | |
| Previous forecast(A) | - | - | - | - | - |
| Revised forecast(B) | 330,000 | 49,000 | 49,000 | 29,000 | 176.79 |
| Change(B-A) | - | - | - | - | |
| Change ratio(%) | - | - | - | - | |
| Results for the six months ended September 30, 2015 | 340,951 | 61,250 | 62,384 | 41,376 | 238.10 |
Consolidated financial forecast revision for the year ending March 31, 2017 (April 1, 2016 - March 31, 2017)
| 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(Yen) | |
| Previous forecast(A) | - | - | - | - | - |
| Revised forecast(B) | 714,000 | 124,000 | 124,000 | 85,000 | 518.18 |
| Change(B-A) | - | - | - | - | |
| Change ratio(%) | - | - | - | - | |
| Results for the year ended March 31, 2016 | 663,948 | 116,788 | 119,399 | 77,891 | 461.10 |
Reason for financial forecast revision
As of current fiscal year, capital investment among semiconductor manufacturers and FPD manufacturers are expected to be steady. We expect consolidated financial results of March, 2017 period as above.
Regarding the effects of the 2016 earthquake in Kumamoto, Japan, we are forecasting an extraordinary loss of approximately 10 billion yen in the first half of the current fiscal year for costs related to various expenses for disaster support and restoration of machinery, inventories, buildings, etc.
Note: The financial forecasts and estimates stated in this announcement are based on certain assumptions judged to be reasonable by the 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. 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 stated in this announcement.
2. Dividends Forecast Revision
| Dividend per share | |||||
| (Yen) | 1Q-end | 2Q-end | 3Q-end | Year-end | Total |
| Previous forecast (April 26, 2016) | － | － | － | － | － |
| Revised forecast | － | 89.00 | － | 171.00 | 260.00 |
| Results for the year ending March 31, 2017 | － | － | － | ||
| Results for the year ended March 31, 2016 | － | 125.00 | － | 112.00 | 237.00 |
Reason for dividend forecast revision
The dividend policy of TEL is to link dividend payments to business performance on an ongoing basis. TEL adopted the new shareholders returning policy from the fiscal year ended March 31, 2016 and provided returns directly to shareholders with the basic policy that is to maintain a payout ratio of around 50% based on consolidated net income attributable to owners of parent.
Based on the financial forecasts for the fiscal year ending March 31, 2017, TEL announced the dividends forecasts for the fiscal year ending March 31, 2017 today.
