TOKYO ELECTRON LTD. TOKYO ELECTRON
Summary of Consolidated Financial Results for the Year Ended | ||
March 31, 2024 (Japanese GAAP) | May 10, 2024 | |
Name of Listed Company: Tokyo Electron Limited | Stock Exchange Listing: Tokyo | |
Security Code: | 8035 | |
URL: | https://www.tel.com | |
Representative: | Toshiki Kawai, Representative Director, President & CEO | |
Contact: | Akifumi Matsumura, Vice President of Accounting Dept. | |
Telephone: +81-3-5561-7000 |
Scheduled start date of dividends payment: May 29, 2024
Preparation of supplementary materials for the financial results: Yes
Earnings release conference: Yes (for investors and analysts)
Note: Amounts are rounded down to the nearest million yen.
1. Consolidated Financial Results for the Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)
(1) Consolidated Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
March 31, 2023 | March 31, 2024 | |||
% | % | |||
Net sales (Millions of yen) | 2,209,025 | 10.2 | 1,830,527 | (17.1) |
Operating income (Millions of yen) | 617,723 | 3.1 | 456,263 | (26.1) |
Ordinary income (Millions of yen) | 625,185 | 3.9 | 463,185 | (25.9) |
Net income attributable to owners of parent (Millions of yen) | 471,584 | 7.9 | 363,963 | (22.8) |
Net income per share of common stock (Yen): | ||||
Basic | 1,007.82 | 783.75 | ||
Diluted | 1,003.86 | 781.20 | ||
Return on equity (%) | 32.3 | 21.8 | ||
Ordinary income to total assets (%) | 29.7 | 19.4 | ||
Operating income to net sales (%) | 28.0 | 24.9 |
Comprehensive income: | Year ended March 31, 2024: | 478,281 million yen, | (4.6)% |
Year ended March 31, 2023: | 501,421 million yen, | 3.1% | |
Profit (loss) on equity method: | Year ended March 31, 2024: | 3,388 million yen | |
Year ended March 31, 2023: | 2,968 million yen |
Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. "Net income per share of common stock - Basic" and "Net income per share of common stock - Diluted" are calculated on the assumption that stock split was implemented at the beginning of the previous fiscal year.
(2) Consolidated Financial Position
As of
Total assets (Millions of yen) Total net assets (Millions of yen) Equity ratio (%)
Net assets per share (Yen)
Equity: 1,746,835 million yen (as of March 31, 2024) 1,587,595 million yen (as of March 31, 2023)
Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. "Net assets per share" is calculated on the assumption that stock split was implemented at the beginning of the previous fiscal year.
(3) Consolidated Cash Flows
Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities
Cash and cash equivalents at end of period
Year ended | |
March 31, 2023 | March 31, 2024 |
426,270 | 434,720 |
(41,756) | (125,148) |
(256,534) | (325,012) |
472,471 | 461,608 |
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TOKYO ELECTRON | |||
2. Dividends | |||
Year ended | Year ending | ||
March 31, 2023 March 31, 2024 | March 31, 2025 | ||
(Forecast) | |||
1Q-end dividends per share (Yen) | - | - | - |
2Q-end dividends per share (Yen) | 857.00 | 148.00 | 200.00 |
3Q-end dividends per share (Yen) | - | - | - |
Year-end dividends per share (Yen) | 854.00 | 245.00 | 281.00 |
Annual dividends per share (Yen) | 1,711.00 | 393.00 | 481.00 |
Total dividends (Millions of yen) | 267,909 | 182,470 | |
Payout ratio (%) | 56.6 | 50.1 | 50.0 |
Dividend on equity (%) | 18.3 | 11.0 |
Notes: 1. The Company implemented a 3-for-1 common stock split on April 1, 2023. For the fiscal year ended March 31, 2023, the actual amount of dividends prior to the stock split are presented. For the fiscal year ended March 31, 2024 and the fiscal year ending March 31, 2025 (forecast), the numbers after the stock split are presented. For reference, annual dividends for the fiscal year ended March 31, 2024 and the fiscal year ending March 31, 2025 (forecast) without considering the stock split are 1,179 yen and 1,443㻌yen.
2. Year-end dividends of 854 yen for the year ended March 31, 2023 include 60th anniversary commemorative dividends of 200 yen.
3. Financial Forecasts for the Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)
Note: Percentages indicate changes from the same period of the previous fiscal year.
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)
Year ending | |||
September 30, 2024 | March 31, 2025 | ||
% | % | ||
1,000,000 | 22.0 | 2,200,000 | 20.2 |
243,000 | 36.1 | 582,000 | 27.6 |
244,000 | 34.6 | 584,000 | 26.1 |
185,000 | 34.6 | 445,000 | 22.3 |
399.59 | 961.19 |
Notes
(1)䚷Changes in significant subsidiaries during the period
(Changes in specified subsidiaries associated with changes in scope of consolidation): None
(2)䚷Changes in accounting policies, changes in accounting estimates and restatements
- Changes in accounting policies along with changes in accounting standards: None
- Other changes of accounting policies besides the number 1 above: None
- Changes in accounting estimates: None
- Restatements: None
- Number of shares issued and outstanding (common stock)
- Number of shares issued and outstanding (including treasury stock)
As of March 31, 2024: | 471,632,733 | shares | ||
As of March 31, 2023: | 471,632,733 | shares | ||
2. | Number of shares of treasury stock | |||
As of March 31, 2024: | 8,663,247 | shares | ||
As of March 31, 2023: | 3,272,016 | shares | ||
3. | Average number of shares outstanding | |||
Year ended March 31, 2024: | 464,389,368 | shares | ||
Year ended March 31, 2023: | 467,926,805 | shares |
Notes: 1. The Company implemented a 3-for-1 common stock split on April 1, 2023. "Number of shares issued and outstanding", "Number of shares of treasury stock" and "Average number of shares outstanding" are calculated on the assumption that stock split was implemented at the beginning of the previous fiscal year.
2. The number of shares of treasury stock includes the Company's shares held by "Executive compensation Board Incentive Plan (BIP) trust"
Notes: and "share-delivering Employee Stock Ownership Plan (ESOP) trust". (1,386,407 shares as of March 31, 2024, 1,502,637 shares as of March 31, 2023)
In addition, these Company's shares are included in the treasury stock which is deducted in calculating the average number of shares.
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TOKYO ELECTRON
(Reference) Non-consolidated Financial Results for the Year Ended March 31, 2024 (April 1, 2023 to March 31, 2024)
(1) Operating Results
Note: Percentages indicate changes from the same period of the previous fiscal year.
Year ended | ||||
March 31, 2023 | March 31, 2024 | |||
% | % | |||
Net sales (Millions of yen) | 2,020,513 | 9.7 | 1,625,256 | (19.6) |
Operating income (Millions of yen) | 379,942 | 23.9 | 401,733 | 5.7 |
Ordinary income (Millions of yen) | 585,745 | 29.5 | 441,386 | (24.6) |
Net income (Millions of yen) | 484,557 | 35.3 | 340,187 | (29.8) |
Net income per share of common stock (Yen): | ||||
Basic | 1,035.54 | 732.55 | ||
Diluted | 1,031.48 | 730.16 |
Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. "Net income per share of common stock - Basic" and "Net income per share of common stock - Diluted" are calculated on the assumption that stock split was implemented at the beginning of the previous fiscal year.
(2) Financial Position
As of
Total assets (Millions of yen)
Total net assets (Millions of yen)
Equity ratio (%)
Net assets per share (Yen)
Equity: | 1,186,035 million yen (as of March 31, 2024) |
1,088,057 million yen (as of March 31, 2023) |
Note: The Company implemented a 3-for-1 common stock split on April 1, 2023. "Net assets per share" is calculated on the assumption that stock split was implemented at the beginning of the previous fiscal year.
* Status of implementation of audit procedures
This Summary of Consolidated Financial Results is outside the scope of external auditor's audit procedures under the Financial Instruments and Exchange Act.
* Explanation of the appropriate use of financial forecast:
The financial forecasts and estimates in this Summary of Consolidated Financial Results are based on information available to the Company at the time of report issuance and certain assumptions judged to be reasonable by the Company, and therefore are not guarantees of future performance. Consequently, actual results may differ substantially from those described in this Summary of Consolidated Financial Results. Please refer to "1. Overview of Operating Results and Consolidated Financial Conditions (4) "Future Forecast" on page 6. The Company plans to hold an online conference for investors and analysts on May 10, 2024. Supplementary materials to be used at the conference will be posted on the Company's website.
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TOKYO ELECTRON
1. Overview of Operating Results and Consolidated Financial Conditions
(1) Overview of Operating Results
(i) Business Environment during the Fiscal Year Ended March 31, 2024
With respect to the global economy in the current consolidated fiscal year, raw material and energy prices that had soared since the advent of the COVID-19 pandemic began to fall during the previous fiscal year. As a result, the inflation rate had fallen to around 2% by the end of the current fiscal year, which is the medium- to long-term target of central banks in major countries. Furthermore, although the increase in policy interest rates, mainly in Europe and the United States, has eased slightly, the yen's depreciation continues.
In the electronics industry, where the Tokyo Electron (TEL) Group operates, semiconductor manufacturers began to reduce production from the second half of the previous consolidated fiscal year as demand for end products such as PCs and smartphones had peaked. As a result, inventory adjustments have progressed, and the supply-demand balance for semiconductors has gradually improved during the current fiscal year.
Under these circumstances, capital investment in semiconductor production equipment, which was entering an adjustment phase, showed signs of bottoming out. Although capital investment for memory and cutting-edge logic/foundrysemiconductors was still generally restrained, there was an increase in inquiries about advanced package equipment for generative AI applications. Additionally, capital investment in China, which aims to improve their semiconductor self-sufficiency rate, for the mature generations of semiconductors used for IoT, automotive, and industrial applications, continued their strong growth trend from the previous fiscal year. Considering the transition to a data society, stemming from the expansion of information and communication technology, and efforts toward realizing a decarbonized society, the role of semiconductors in supporting electronic devices and the importance of their technological innovation is increasing. Therefore, further growth is expected in the semiconductor production equipment market in the medium- to long-term.
From the current consolidated fiscal year, information by segment has been omitted, due to the change of the reportable segments to a single segment of "Semiconductor Production Equipment". For details, please refer to "Notes" on page 15 for further information.
(ii) Overview of Profit and Loss during the Fiscal Year Ended March 31, 2024
In this environment, the consolidated business results for the fiscal year under review are as follows.
Net sales for the fiscal year decreased 17.1% from the previous fiscal year to 1,830,527 million yen. Domestic net sales decreased 22.9% from the previous year to 184,982 million yen, while overseas net sales decreased 16.4% to 1,645,544 million yen to account for 89.9% of net sales.
Cost of sales decreased 18.3% to 1,000,257 million yen and gross profit decreased 15.7% to 830,269 million yen. As a result, the gross profit margin increased 0.8 points to 45.4%.
Selling, general and administrative (SG&A) expenses increased 2.0% to 374,006 million yen, while the ratio to consolidated net sales increased 3.9 points to 20.5%.
As a result, operating income decreased 26.1% to 456,263 million yen and operating profit ratio decreased 3.1 points to 24.9%. After netting of non-operating income of 12,164 million yen and non-operating expenses of 5,242 million yen,
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TOKYO ELECTRON
ordinary income decreased 25.9% to 463,185 million yen.
Income before income taxes was 473,439 million (year-on-year decrease of 24.2%) and net income attributable to owners of parent was 363,963 million yen (year-on-year decrease of 22.8%).
As a result, net income per share was 783.75 yen compared to net income per share of 1,007.82 yen in the previous fiscal year.
(2) Overview of Consolidated Financial Conditions
Current assets at the end of the current fiscal year were 1,700,451 million yen, a decrease of 40,507 million yen compared to the end of the previous fiscal year. This was mainly due to a decrease of 87,883 million yen in prepaid consumption tax, a decrease of 73,466 million yen in notes and accounts receivable - trade, and contract assets, and an increase of 110,749 million yen in inventories.
Property, plant and equipment increased by 78,278 million yen from the end of the previous fiscal year, to 337,366 million yen.
Intangible assets increased by 3,824 million yen from the end of the previous fiscal year, to 32,383 million yen. Investments and other assets increased by 103,274 million yen from the end of the previous fiscal year, to 386,260 million yen.
As a result, total assets increased by 144,868 million yen from the end of the previous fiscal year, to 2,456,462 million yen.
Current liabilities decreased by 17,994 million yen from the end of the previous fiscal year, to 611,899 million yen. This was largely due to a decrease of 23,957 million yen in trade notes and accounts payable, and an increase of 8,832 million yen in income taxes payable.
Long-term liabilities increased by 2,207 million yen from the end of the previous fiscal year, to 84,383 million yen.
Net assets increased by 160,655 million yen from the end of the previous fiscal year, to 1,760,180 million yen. This was largely due to an increase of 363,963 million yen resulting from recording net income attributable to owners of parent and a decrease resulting from the payment of 202,457 million yen in year-end dividends for the previous fiscal year and interim dividends for the current fiscal year. As a result, the equity ratio was 71.1%.
(3) Overview of Consolidated Cash Flows
Cash and cash equivalents at the end of the current fiscal year decreased by 10,862 million yen compared to the end of the previous fiscal year, to 461,608 million yen. The combined balance including 10,939 million yen in time deposits and short-term investments with maturities of more than three months that are not included in cash and cash equivalents was 472,548 million yen, a decrease of 552 million yen from the end of the previous fiscal year. The overall situation regarding cash flows for the fiscal year was as described below.
Cash flows from operating activities were positive 434,720 million yen, an increase of 8,450 million yen compared to the end of the previous fiscal year. The major positive factors were 473,439 million yen in income before income taxes, a 88,092 million yen decrease in prepaid consumption tax, and a 84,848 million yen decrease in notes and accounts receivable - trade, and contract assets. The major negative factors were 118,935 million yen in payment of income taxes, and a 97,712 million yen increase in inventories.
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TOKYO ELECTRON
Cash flows from investing activities were negative 125,148 million yen compared to negative 41,756 million yen in the same period of the previous fiscal year. This was largely due to the payment of 116,993 million yen for the purchase of property, plant and equipment.
Cash flows from financing activities were negative 325,012 million yen compared to negative 256,534 million yen in the same period of the previous fiscal year. This was largely due to the payment of 202,457 million yen in dividends, and the payment of 120,028 million yen for the purchase of treasury stock.
(4) Future forecast
Due to the importance of innovating semiconductor technologies (including the aspects of high capacity, high speed, high reliability, and low power consumption) stemming from the transition to a data society accompanying the expansion of information and communication technology and efforts toward realizing a decarbonized society, the semiconductor production equipment market is expected to further grow in the future. Therefore, the consolidated financial forecasts for the fiscal year ending March 31, 2025 are as follows.
Consolidated Financial Forecast | (Billions of yen, Y/Y change) | |||||
Year ending March 31, 2025 | Interim | Full Year | ||||
Net Sales | 1,000.0 | 22.0% | 2,200.0 | 20.2% | ||
Operating Income | 243.0 | 36.1% | 582.0 | 27.6% | ||
Ordinary Income | 244.0 | 34.6% | 584.0 | 26.1% | ||
Net Income Attributable to Owners of Parent | 185.0 | 34.6% | 445.0 | 22.3% | ||
Note: The financial forecasts and estimates stated in this announcement are based on certain assumptions judged to be reasonable by the Company 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.
(5) Basic Policy on Profit Allocation and Payment of Dividends for the Current and Next Fiscal Years
TEL utilizes capital reserves to raise corporate value through earnings growth and provide returns directly to shareholders by concentrating investment in high-growth areas and linking dividend payments to business performance. Basic policy concerning shareholder return is as follows.
Shareholder Return Policy
- Our dividend policy is to link dividend payments to business performance on an ongoing basis and a payout ratio is around 50% based on net income attributable to owners of parent, with the conditions that an annual dividend per share is not less than 50 yen. Besides, TEL will review our dividend policy if TEL does not generate net income for two consecutive fiscal years.
- TEL will flexibly consider share buybacks.
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TOKYO ELECTRON
The year-end dividends for the current fiscal year (the year ended March 31, 2024) are 245 yen per share. The dividends for the full year are 393 yen per share, which includes the interim dividends of 148 yen per share.
Dividends per share | |||
2Q-end | Year-end | Total | |
Current fiscal year | 148 yen | 245 yen | 393 yen |
(ended March 31, 2024) | |||
The dividends are forecasted for the next fiscal year (the year ending March 31, 2025) to be 481 yen per share for the entire year (interim dividends : 200 yen, year-end dividends : 281 yen), in accordance with the above consolidated financial forecast for net income attributable to owners of parent for the next fiscal year.
Dividends per share | |||
2Q-end | Year-end | Total | |
Next fiscal year | 200 yen | 281 yen | 481 yen |
(ending March 31, 2025) | |||
2. Basic philosophy on the selection of accounting standards
The consolidated financial statements of TEL group have been prepared in conformity with accounting principles generally accepted in Japan. In regard to the application of IFRS, we will pay close attention to domestic and international implementation adoption trends and respond accordingly.
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TOKYO ELECTRON | ||
Consolidated Balance Sheets | ||
(Millions of yen) | ||
As of | As of | |
March 31, 2023 | March 31, 2024 | |
ASSETS | ||
Current assets | ||
Cash and deposits | 473,099 | 462,383 |
Notes and accounts receivable - trade, and contract assets | 464,889 | 391,423 |
Securities | 0 | 10,165 |
Merchandise and finished goods | 236,795 | 284,451 |
Work in process | 161,938 | 173,929 |
Raw materials and supplies | 253,474 | 304,576 |
Others | 150,946 | 73,876 |
Allowance for doubtful accounts | (184) | (353) |
Total current assets | 1,740,959 | 1,700,451 |
Long-term assets | ||
Property, plant and equipment | ||
Buildings and structures | 248,421 | 271,442 |
Accumulated depreciation | (130,524) | (137,472) |
Buildings and structures , net | 117,896 | 133,970 |
Machinery and carriers | 204,841 | 239,161 |
Accumulated depreciation | (153,330) | (178,899) |
Machinery and carriers , net | 51,510 | 60,261 |
Land | 31,283 | 33,804 |
Construction in progress | 39,605 | 87,399 |
Others | 61,680 | 71,548 |
Accumulated depreciation | (42,887) | (49,617) |
Others, net | 18,792 | 21,931 |
Total property, plant and equipment | 259,088 | 337,366 |
Intangible assets | ||
Others | 28,559 | 32,383 |
Total intangible assets | 28,559 | 32,383 |
Investments and other assets | ||
Investment securities | 165,507 | 277,706 |
Deferred tax assets | 58,599 | 42,096 |
Net defined benefit assets | 19,374 | 29,426 |
Others | 40,844 | 38,441 |
Allowance for doubtful accounts | (1,340) | (1,409) |
Total investments and other assets | 282,986 | 386,260 |
Total long-term assets | 570,634 | 756,011 |
Total assets | 2,311,594 | 2,456,462 |
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TOKYO ELECTRON | ||
Consolidated Balance Sheets | ||
(Millions of yen) | ||
As of | As of | |
March 31, 2023 | March 31, 2024 | |
LIABILITIES | ||
Current liabilities | ||
Trade notes and accounts payable | 116,317 | 92,359 |
Income taxes payable | 71,177 | 80,009 |
Customer advances | 289,169 | 289,905 |
Accrued employees' bonuses | 43,337 | 43,727 |
Accrued warranty expenses | 34,382 | 33,524 |
Others | 75,509 | 72,372 |
Total current liabilities | 629,893 | 611,899 |
Long-term liabilities | ||
Net defined benefit liabilities | 60,366 | 56,139 |
Others | 21,808 | 28,243 |
Total long-term liabilities | 82,175 | 84,383 |
Total liabilities | 712,069 | 696,282 |
NET ASSETS | ||
Shareholders' equity | ||
Common stock | 54,961 | 54,961 |
Capital surplus | 78,011 | 78,011 |
Retained earnings | 1,322,203 | 1,480,306 |
Treasury stock, at cost | (22,033) | (135,215) |
Total shareholders' equity | 1,433,141 | 1,478,063 |
Accumulated other comprehensive income | ||
Net unrealized gains (losses) on investment securities | 107,452 | 184,934 |
Net deferred gains (losses) on hedging instruments | (46) | 42 |
Foreign currency translation adjustments | 43,091 | 72,275 |
Accumulated remeasurements of defined benefit plans | 3,954 | 11,519 |
Total accumulated other comprehensive income (loss) | 154,453 | 268,771 |
Share subscription rights | 11,929 | 13,345 |
Total net assets | 1,599,524 | 1,760,180 |
Total liabilities and net assets | 2,311,594 | 2,456,462 |
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TOKYO ELECTRON | ||
Consolidated Statements of Income | ||
(Millions of yen) | ||
Year ended | Year ended | |
March 31, 2023 | March 31, 2024 | |
Net sales | 2,209,025 | 1,830,527 |
Cost of sales | 1,224,617 | 1,000,257 |
Gross profit | 984,408 | 830,269 |
Selling, general & administrative expenses | ||
Salaries and allowances | 36,079 | 43,385 |
Research and development expenses | 191,196 | 202,873 |
Others | 139,407 | 127,747 |
Total selling, general and administrative expenses | 366,684 | 374,006 |
Operating income | 617,723 | 456,263 |
Non-operating income | ||
Interest income | 1,235 | 2,567 |
Share of profit of associates accounted for using the equity method | 2,968 | 3,388 |
Revenue from grants | 2,559 | 2,430 |
Others | 3,303 | 3,778 |
Total non-operating income | 10,066 | 12,164 |
Non-operating expenses | ||
Foreign exchange loss | 1,401 | 4,148 |
Others | 1,202 | 1,094 |
Total non-operating expenses | 2,604 | 5,242 |
Ordinary income | 625,185 | 463,185 |
Unusual or infrequent profit | ||
Gain on sales of long-term assets | 890 | 10,617 |
Others | - | 220 |
Total unusual or infrequent profit | 890 | 10,838 |
Unusual or infrequent loss | ||
Loss on disposal and sales of long-term assets | 781 | 584 |
Loss on impairment of property, plant and equipment, goodwill | 438 | - |
and other assets | ||
Total unusual or infrequent loss | 1,219 | 584 |
Income before income taxes | 624,856 | 473,439 |
Provision for income taxes and enterprise taxes | 173,704 | 124,001 |
Deferred income taxes | (20,431) | (14,525) |
Total income taxes | 153,272 | 109,475 |
Net income | 471,584 | 363,963 |
Net income attributable to owners of parent | 471,584 | 363,963 |
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TEL - Tokyo Electron Ltd. published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 06:48:03 UTC.
