Notice of Difference between Consolidated Financial Forecast and Results for the First Six Months of the Fiscal Year Ending March 31, 2017, Revision of Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2017, Payment of Interim Dividends
Tokyo Electron Ltd. (TEL) announced the difference between the consolidated financial forecast and results for the first six months of the fiscal year ending March 31, 2017 disclosed on May 12, 2016 and revision of consolidated financial forecast for the fiscal year ending March 31, 2017.
TEL also announced that on October 28, 2016, its Board of Directors had passed a resolution to pay interim dividends from surplus earnings (for the first half of the fiscal year ending March 31, 2017) to shareholders of record as of September 30, 2016 and revised the year-end dividends forecast in conjunction with the revision of the consolidated financial forecasts.
1. Difference between consolidated financial forecast and results for the first six months of the fiscal year ending March 31, 2017, and revision of consolidated financial forecast for the fiscal year ending March 31, 2017
(1)Difference between consolidated financial forecast and results 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 (Millions of yen) |
Net income per share (Yen) |
|
|---|---|---|---|---|---|
| Previous forecast (A) | 330,000 | 49,000 | 49,000 | 29,000 | 176.79 |
| Results (B) | 352,722 | 60,012 | 62,365 | 41,966 | 255.83 |
| Change (B-A) | 22,722 | 11,012 | 13,365 | 12,966 | |
| Change ratio (%) | 6.9 | 22.5 | 27.3 | 44.7 | |
| Results for the six months ended September 30, 2015 | 340,951 | 61,250 | 62,384 | 41,376 | 238.10 |
(2)Consolidated financial forecast revision for the fiscal 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 (Millions of yen) |
Net income per share (Yen) |
|
|---|---|---|---|---|---|
| Previous forecast (A) | 714,000 | 124,000 | 124,000 | 85,000 | 518.18 |
| Revised forecast (B) | 762,000 | 140,000 | 142,000 | 100,000 | 609.57 |
| Change (B-A) | 48,000 | 16,000 | 18,000 | 15,000 | |
| Change ratio (%) | 6.7 | 12.9 | 14.5 | 17.6 | |
| Results for the year ended March 31, 2016 | 663,948 | 116,788 | 119,399 | 77,891 | 461.10 |
(3)Reason for difference and revision
Orders of our core semiconductor production equipment generally showed strength and the profit ratio improved by increased net sales. As a result, financial results for the first six months of the fiscal year ending March 31, 2017 exceeded previously announced forecast.
The financial forecast for the fiscal year ending March 31, 2017 has been revised up, as we expect market condition performs strong continuously in light of our current orders.
2. Payment of interim dividends from surplus earnings (for the first half of the fiscal year ending March 31, 2017) and dividends forecast revision (1)Details of dividend payments
| Amount resolved to be paid | Previous forecast (announced on May 12, 2016) |
Dividends paid in previous fiscal year (first half of the fiscal year ended March 2016) |
|
|---|---|---|---|
| Shareholder registration date | September 30, 2016 | September 30, 2016 | September 30, 2015 |
| Dividends per share | 128.00 Yen | 89.00 Yen | 125.00 Yen |
| Total dividends paid | 20,999 Million Yen | － | 20,823 Million Yen |
| Date dividends start to be paid | November 28, 2016 | － | November 30, 2015 |
| Source of funds to pay dividends | Surplus earnings | － | Surplus earnings |
(2) Dividends forecast revision
| Dividend per share | |||
|---|---|---|---|
| (Yen) | 2Q-end | Year-end | Total |
| Previous forecast (May 12, 2016) | 89.00 | 171.00 | 260.00 |
| Revised forecast | 177.00 | 305.00 | |
| Results for the year ending March 31, 2017 | 128.00 | ||
| Results for the year ended March 31, 2016 | 125.00 | 112.00 | 237.00 |
(3)Reason
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. The consolidated results for the first half of the current fiscal year announced today showed an increase compared to the previous forecast, and consequently, the dividends for the first half was revised upward.
Also TEL revised the year-end dividends forecast per share in conjunction with the revision of our consolidated financial forecasts as above.
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.
