Slides
Page 1
Investor Relations / October 31, 2025 1 October 31, 2025 Agenda: Consolidated Financial Summary Hiroshi Kawamoto, SVP & GM, Division Officer of Finance Division Business Environment and Financial Estimates Toshiki Kawai, Representative Director, President & CEO Q2 FY2026 (July - September 2025) Financial Announcement
Page 2
Investor Relations / October 31, 2025 2 Disclaimer regarding forward-looking statements Forward-looking statements with respect to TEL’s business plan, prospects and other such information are based on information available at the time of publication. Actual performance and results may differ significantly from the business plan described here due to changes in various external and internal factors, including political and economic situation, semiconductor market conditions, intensification of sales competition, safety and product quality management, intellectual property-related matters and impacts from infectious diseases. Processing of numbers For the amount listed, because fractions are rounded down, there may be the cases where the total for certain account titles does not correspond to the sum of the respective figures for account titles. Percentages are calculated using full amounts, before rounding. Foreign exchange risk In principle, export sales of Tokyo Electron’s products is denominated in yen. Although some sales and expenses are denominated in foreign currencies, the impact of foreign exchange rate fluctuations on profits is negligible, unless extreme fluctuations occur. Forward Looking Statements
Page 3
Investor Relations / October 31, 2025 3 October 31, 2025 Hiroshi Kawamoto SVP & GM, Division Officer of Finance Division Q2 FY2026 Consolidated Financial Summary
Page 4
Investor Relations / October 31, 2025 4 FY2025 FY2026 vs. Q1 FY2026 vs. Q2 FY2025Q2 Q3 Q4 Q1 Q2 Net sales 566.5 654.5 655.4 549.5 630.0 +14.6% +11.2% Gross profit 259.9 311.7 310.5 253.9 284.8 +12.2% +9.6% Gross profit margin 45.9% 47.6% 47.4% 46.2% 45.2% -1.0pts -0.7pts SG&A expenses 111.7 112.1 126.7 109.2 126.4 +15.7% +13.1% Operating income 148.1 199.6 183.7 144.6 158.4 +9.5% +6.9% Operating margin 26.2% 30.5% 28.0% 26.3% 25.1% -1.2pts -1.1pts Income before income taxes 153.6 200.1 185.1 151.9 161.0 +6.0% +4.8% Net income attributable to owners of parent 117.7 157.2 142.9 117.8 123.8 +5.1% +5.2% R&D expenses 62.0 61.8 72.7 62.1 72.6 +17.0% +17.1% Capital expenditures 53.3 50.2 34.6 52.8 91.2 +72.7% +71.1% Depreciation and amortization 14.5 16.0 18.3 17.1 19.1 +11.4% +31.8% Financial Summary (Quarterly) 1. In principle, export sales of Tokyo Electron’s products is denominated in yen. Although some sales and expenses are denominated in foreign currencies, the impact of foreign exchange rate fluctuations on profits is negligible, unless extreme fluctuations occur. 2. Profit ratios are calculated using full amounts, before rounding. 3. FY202x refers to the financial year ending in March 202x. (Billion yen)
Page 5
Investor Relations / October 31, 2025 5 FY2025 FY2026 Q2 Q3 Q4 Q1 Q2 Net sales 566.5 654.5 655.4 549.5 630.0 Operating income 148.1 199.6 183.7 144.6 158.4 Net income attributable to owners of parent 117.7 157.2 142.9 117.8 123.8 Gross profit margin 45.9% 47.6% 47.4% 46.2% 45.2% Operating margin 26.2% 30.5% 28.0% 26.3% 25.1% 630.0 158.4 123.8 45.2% 25.1% 0% 20% 40% 60% 0 200 400 600 Financial Performance (Quarterly) (Billion Yen)
Page 6
Investor Relations / October 31, 2025 6 FY2025 FY2026 vs. H2 FY2025 vs. H1 FY2025 Reference: H1 FY2026 Estimate (As of July 31)H1 H2 H1 Net sales 1,121.6 1,309.9 1,179.6 -9.9% +5.2% 1,150.0 Gross profit 523.9 622.3 538.8 -13.4% +2.8% 527.0 Gross profit margin 46.7% 47.5% 45.7% -1.8pts -1.0pts 45.8% SG&A expenses 210.0 238.9 235.7 -1.3% +12.2% 239.0 Operating income 313.9 383.4 303.1 -20.9% -3.4% 288.0 Operating margin 28.0% 29.3% 25.7% -3.6pts -2.3pts 25.0% Income before income taxes 320.8 385.2 312.9 -18.8% -2.5% 293.0 Net income attributable to owners of parent 243.9 300.2 241.6 -19.5% -0.9% 224.0 R&D expenses 115.4 134.5 134.8 +0.2% +16.7% 140.0 Capital expenditures 77.3 84.8 144.0 +69.8% +86.4% - Depreciation and amortization 27.7 34.4 36.2 +5.3% +30.9% - Financial Summary (Semiannual) 1. In principle, export sales of Tokyo Electron’s products is denominated in yen. Although some sales and expenses are denominated in foreign currencies, the impact of foreign exchange rate fluctuations on profits is negligible, unless extreme fluctuations occur. 2. Profit ratios are calculated using full amounts, before rounding. (Billion yen)
Page 7
Investor Relations / October 31, 2025 7 Composition of Net Sales by Region (Quarterly) （Billion yen） FY2024 FY2025 FY2026 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Japan 41.2 57.4 56.7 38.5 52.6 45.3 53.4 64.3 52.9 North America 47.4 42.1 48.3 59.0 79.9 57.7 46.2 43.4 38.4 Europe 33.5 29.4 28.1 15.5 23.8 15.7 20.3 14.0 10.8 South Korea 67.4 58.2 82.0 67.8 79.5 114.5 147.0 88.3 132.5 Taiwan 39.9 46.3 55.2 80.0 75.3 119.3 135.8 111.5 119.7 Southeast Asia, Others 15.1 12.7 17.5 17.0 21.2 22.3 27.8 15.6 21.3 China 182.9 217.2 259.1 277.0 233.9 279.4 224.6 212.1 254.1 Japan North America South Korea Europe Taiwan China Southeast Asia, Others 42.8% 46.9% 47.4% 49.9% 41.3% 42.7% 34.3% 38.6% 40.3% 3.5% 2.8% 3.2% 3.1% 3.7% 3.4% 4.3% 2.8% 3.4% 9.3% 10.0% 10.1% 14.4% 13.3% 18.3% 20.7% 20.3% 19.0% 15.8% 12.5% 15.0% 12.2% 14.1% 17.5% 22.4% 16.1% 21.1% 7.8% 6.3% 5.1% 2.8% 4.2% 2.4% 3.1% 2.6% 1.7% 11.1% 9.1% 8.8% 10.6% 14.1% 8.8% 7.1% 7.9% 6.1% 9.7% 12.4% 10.4% 7.0% 9.3% 6.9% 8.1% 11.7% 8.4% 427.8 463.6 547.2 555.0 566.5 654.5 655.4 549.5 630.0 0 100 200 300 400 500 600 700
Page 8
Investor Relations / October 31, 2025 8 SPE New Equipment Sales by Application (Quarterly) 29% 20% 30% 21% 25% 23% 27% 25% 38% 17% 22% 23% 18% 31% 32% 19% 12% 31% 32% 25% 16% 24% 34% 26% 22% 27% 27% 24% 17% 40% 16% 27% 25% 23% 27% 25% 38% 17% 22% 23% 18% 31% 32% 19% 12% 31% 32% 25% 16% 24% 34% 26% 22% 27% 27% 24% 17% 40% 16% 27% 25% 35% 8% 32% 67% 65% 63% 72% 71% 57% 51% 64% 59% 5% 4% 7% 2% 3% 8% 12% 10% 14% 28% 31% 30% 26% 26% 35% 37% 26% 27% 315.4 353.0 417.0 431.5 415.0 510.6 503.9 395.0 455.0 0 100 200 300 400 500 600 DRAM Non-volatile memory Non-memory (Logic, foundry, others) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024 FY2025 FY2026 (Billion yen) 1. SPE: Semiconductor Production Equipment 2. Percentages on the graph show the composition ratio of new equipment sales. Field Solutions sales are not included.
Page 9
Investor Relations / October 31, 2025 9 Field Solutions Sales (Quarterly) 104.4 104.4 119.3 118.1 139.5 141.5 138.9 141.2 160.3 0 50 100 150 200 (Billion yen) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024 FY2025 FY2026
Page 10
Investor Relations / October 31, 2025 10 386.5 389.6 347.6 400.2 397.4 31.8 34.2 35.8 35.5 35.7 389.2 431.4 441.7 480.3 561.2 70.6 75.0 69.7 75.3 85.4 742.2 765.0 749.1 757.1 720.4 371.7 510.9 485.6 393.2 411.4 525.5 295.5 496.2 367.5 455.2 2,517.8 2,501.9 2,625.9 2,509.3 2,667.0 Q2 FY'25 Q3 Q4 Q1 FY'26 Q2 Balance Sheet (Quarterly) 1,798.3 1,798.1 1,855.2 1,872.7 2,004.6 719.4 703.8 770.7 636.5 662.3 2,517.8 2,501.9 2,625.9 2,509.3 2,667.0 Assets Liabilities and Net Assets (Billion Yen) (Billion Yen) Other current assets Tangible assets Intangible assets Cash and cash equivalents* Inventories Notes and accounts receivable (trade, and contract assets) Investment and other assets Liabilities Net assets *Cash and cash equivalents: “Cash and deposits” + “Short-term investments”, etc. (“Securities” in Balance Sheet). Q2 Q3 Q4 Q1 Q2 FY2025 FY2026 Q2 Q3 Q4 Q1 Q2 FY2025 FY2026
Page 11
Investor Relations / October 31, 2025 11 Cash Flow (Quarterly) 175.8 -86.7 -1.0 89.1 -300 -200 -100 0 100 200 300 FY2024 FY2025 FY2026 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Cash flow from operating activities 74.8 95.0 139.0 183.7 148.6 -15.0 264.8 74.9 175.8 Cash flow from investing activities*1 -23.4 -34.4 -20.3 -27.3 -54.4 -49.0 -38.9 -54.1 -86.7 Cash flow from financing activities -90.8 -69.3 -0.6 -194.4 -0.6 -170.1 -23.5 -151.1 -1.0 Free cash flow*2 51.4 60.6 118.7 156.4 94.1 -64.1 225.8 20.7 89.1 Cash on hand*3 362.6 352.4 472.5 438.5 525.5 295.5 496.2 367.5 455.2 (Billion Yen) *1 Cash flow from investing activities excludes changes in time deposits and short-term investments. *2 Free cash flow = “Cash flow from operating activities” + “Cash flow from investing activities” (excluding changes in “Time deposits” and “Short-term investments”). *3 Cash on hand includes “Cash and cash equivalents” + “Time deposits and short-term investments” with original maturities of more than three months. Share Repurchase -79.9 -90.2 -46.9 -23.0
Page 12
Investor Relations / October 31, 2025 12 October 31, 2025 Toshiki Kawai Representative Director, President & CEO Business Environment and Financial Estimates
Page 13
Investor Relations / October 31, 2025 13 CY2025 Forecast: Approx. $115B - No changes – Investments are primarily being driven by leading-edge logic and DRAM for AI applications – NAND is showing signs of recovery, investment in mature nodes remains subdued Looking ahead, expecting continued expansion in investments for leading- edge semiconductors, fueled by strong demand for AI servers – DRAM: Investment surging for both HBM and general-purpose DRAM. Double-digit growth is anticipated to continue in the following years – NAND: Rising SSD-demand boosts utilization and drives investment growth – Logic/foundry: Investment in leading-edge nodes accelerates, with progress in advanced packaging – Mature nodes: WFE spending is expected to remain roughly flat at current levels Market Environment (WFE Market Outlook as of October, 2025) Demand for high-value-added equipment expected to grow from next year
Page 14
Investor Relations / October 31, 2025 14 Growing Opportunities: Scaling x Heterogeneous Integration >500 B yen • DRAM Etchers for Interconnect: Growth driven by increased investment in HBM with more interconnect layers Cumulative sales over 500 billion yen expected by 2030 Etch >500 B yen • 3D Integration Equipment including Bonders: Rapid expansion across all applications Cumulative sales over 500 billion yen expected by 2030 Bonder Laser CAGR >15% Prober • Probers for AI/HPC: Driven by longer test times and more process steps, projecting CAGR over 15% (CY2025-CY2030) SAM +10% Die Prober PECVD • Die Probers: Development and evaluation agreed with customers Creating 10-15% of the prober market SAM • PECVD for Gap Fill: SAM estimated to be approx. 10% of PECVD market Evaluations progressing with multiple customers
Page 15
Investor Relations / October 31, 2025 15 FY2025 (Actual) FY2026 Reference: FY2026 （Estimate as of July 31） H1 (Actual) H2 (Updated) Full Year (Updated) vs FY2025 Adjustments* H2 Full Year Net sales 2,431.5 1,179.6 1,200.3 2,380.0 -2.1% 30.0 1,200.0 2,350.0 Gross profit Gross profit margin 1,146.2 47.1% 538.8 45.7% 540.1 45.0% 1,079.0 45.3% -5.9% -1.8pts 13.0 -0.1 pts 539.0 44.9% 1,066.0 45.4% SG&A expenses R&D Other than R&D 448.9 250.0 198.9 235.7 134.8 100.9 257.2 155.1 102.1 493.0 290.0 203.0 +9.8% +16.0% +2.1% -3.0 -5.0 2.0 257.0 155.0 102.0 496.0 295.0 201.0 Operating income Operating margin 697.3 28.7% 303.1 25.7% 282.8 23.6% 586.0 24.6% -16.0% -4.1pts 16.0 0.4pts 282.0 23.5% 570.0 24.3% Income before income taxes 706.1 312.9 322.0 635.0 -10.1% 56.0 286.0 579.0 Net income attributable to owners of parent 544.1 241.6 246.3 488.0 -10.3% 44.0 220.0 444.0 Net income per share (Yen) 1,182.40 527.31 - 1,064.77 -117.63 95.65 - 969.12 Financial Estimates for FY2026 Full-year outlook revised based on H1 results. Reflected extraordinary income from sales of strategic shareholdings (Billion Yen) * Changes from the figures announced on July 31, 2025
Page 16
Investor Relations / October 31, 2025 16 71% 54% 61% 58% 3% 10% 12% 11% 26% 36% 27% 31% 846.6 1,014.5 850.1 880.0 0 200 400 600 800 1,000 1,200 FY2025 H1 FY2025 H2 FY2026 H1 Actual FY2026 H2 Estimate DRAM Non-volatile memory Non-memory (Logic, foundry, others) FY2026 SPE New Equipment Sales Forecast Sales by Application (Billion Yen) Percentages on the graph show the composition ratio of new equipment sales. Field solutions sales are not included. Updated application mix based on latest outlook
Page 17
Investor Relations / October 31, 2025 17 57.2 74.4 121.8 162.1 240.0 36.7 42.9 52.3 62.1 86.0 0 100 200 300 FY2022 FY2023 FY2024 FY2025 FY2026 Estimate 158.2 191.1 202.8 250.0 290.0 0 100 200 300 FY2022 FY2023 FY2024 FY2025 FY2026 Estimate （Billion Yen） Capex R&D expenses Depreciation Kurokawa-gun, Miyagi Prefecture Completed in April 2025 Tohoku Production and Logistics Center Deposition system Oshu-city, Iwate Prefecture Completion scheduled for autumn 2025 Development Building No. 3 Etch system FY2026 R&D Expenses and Capex Plan Process Development Building Coater/developer, cleaning system （Billion Yen） Miyagi Innovative Production Center Etch system Kurokawa-gun, Miyagi Prefecture Completion scheduled for summer 2027 Koshi-city, Kumamoto Prefecture Completed in October 2025 Semiconductors for AI servers drive technology innovation, fueling expanding demand. R&D and capital investments to proceed as scheduled
Page 18
Investor Relations / October 31, 2025 18 FY2026 Dividend Forecast 264 Interim 269 Year-end260 (781) 467 (1,403) 570 (1,711) 393 (1,179) 592 (1,776) 533 (1,599) 0 200 400 600 800 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Estimate Commemorative dividend *Due to the stock split on April 1, 2023, the amount has been changed from 150 yen to 50 yen. Dividend per Share (Yen) Dividend payout ratio: 50% Annual DPS of not less than 50 yen* We will flexibly consider share buybacks TEL shareholder return policy We will review our dividend policy if the company does not generate net income for two consecutive fiscal years Dividends per share from FY2021 to FY2023 are calculated on the assumption that the stock split was conducted at the beginning of FY2021. FY2023 includes the 60th anniversary commemorative dividends. Amounts before the stock split are shown in parentheses. Full-year dividends are expected to be 533 yen per share