Oct 31, 2018

Announcement on Financial Forecast and Dividends Forecast Revision

Tokyo Electron (TEL) announced that the financial forecast and the dividends forecast announced on April 25, 2018 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, 2019 (April 1, 2018 - March 31, 2019)

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)

1,400,000

366,000

366,000

270,000

1,645.20

Revised forecast (B)

1,280,000

309,000

315,000

237,000

1,445.20

Change (B-A)

△120,000

△57,000

△51,000

△33,000

Change ratio (%)

△8.6

△15.6

△13.9

△12.2

Results for the year ended March 31, 2018

1,130,728

281,172

280,737

204,371

1,245.48


Reason for financial forecast revision
There are no changes to the medium-term management plan published on May 29, 2018, as the semiconductor market is expected to continue to grow for the medium to long term backed by the demand for semiconductors in response to new technologies such as artificial intelligence (AI) and next-generation telecommunication standards. However, the consolidated financial forecast for the fiscal year ending March 31, 2019 (announced on April 25, 2018) has been revised in light of the fact that semiconductor manufacturers are adjusting their plans for capital investment.

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 25, 2018)

390.00

433.00

823.00

Revised forecast

311.00

724.00

Results for the year ending March 31, 2019

413.00

Results for the year ended March 31, 2018

277.00

347.00

624.00

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. In conjunction with the revision of our consolidated forecasts, TEL has also revised our year-end dividends forecast per share as above.