FY2015 (April 1, 2014 March 31, 2015) Financial Announcement

Transcription

1 FY215 (April 1, 214 March 31, 215) Financial Announcement Agenda: FY215 Consolidated Financial Summary Yoshiteru Harada, Corporate Director, Executive Officer Business Environment and Approach to Raising Profitability Tetsuro Higashi, Chairman, President & CEO April 27, 215 Corp IR/April 27, 215

2 FY215 (April 1, 214 March 31, 215) Consolidated Financial Summary Yoshiteru Harada Corporate Director, Executive Officer April 27, 215 Corp IR/April 27, 215

3 Financial Summary FY214 FY215 YoY Change (Reference) FY215 estimates announced on March 26 Net sales % 69. Gross profit Gross profit margin % % +2% - SG&A expenses % - Operating income % 87. Operating margin 5.3% 14.4% Income before income taxes B Yen - Net income B Yen 66. EPS (yen) R&D expenses % - Capital expenditures % - Depreciation and amortization % - Highest ever gross profit margin Tokyo Electron Device became an equity-method affiliate, and from FY215 the EC/CN business was excluded from the scope of consolidation 1. In principle, export sales of Tokyo Electron s mainstay semiconductor and FPD production equipment are denominated in yen. While some settlements are denominated in dollars, exchange risk is hedged as forward exchange contracts are made individually at the time of booking. 2. Profit ratios are calculated using full amounts, before rounding. Corp IR/January 3, 215Corp IR/April 27, 215 2

4 Sales by Division FY214 FY215 YoY Sales Sales Change Composition Composition SPE % % +2% FPD % % +16% PVE 3.8 1% 3.6 1% - EC/CN % Others.4 %.5 % +16% Total % % +% SPE (Semiconductor Production Equipment) FPD (Flat Panel Display Production Equipment) Memory, logic investment increased, up 2% YonY Mainly sales of large panel production equipment to China PVE (Photovoltaic Panel Production Equipment) Ceased development, production and sales as of end March 214. Maintaining support for delivered equipment. Corp IR/January 3, 215Corp IR/April 27, 215 3

5 Segment Information SPE FPD (Semiconductor (Flat Panel Display Production Equipment) Production Equipment) Sales Sales Segment income Segment income 5 5 PVE (Photovoltaic Panel Production Equipment) Sales Segment income Segment profit margin 15.5% 23.6% -.1% -4.% % 1. There are expenses that are not allocated to above reportable segments (mainly corporate R&D expenses and impairment losses). (; 41.5 B yen, ; 4.2 B yen) 2. Segment income is based on income before income taxes. Corp IR/January 3, 215Corp IR/April 27, 215 4

6 SPE Sales by Region Japan U.S. Europe Korea Taiwan China S.E. Asia, Others Region Composition % S.E. Asia, Others China % % Taiwan Korea Europe U.S. Japan Corp IR/January 3, 215Corp IR/April 27, 215 5

7 Orders, Order Backlog FY12 4Q FY13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q SPE Orders FPD Orders PVE Orders SPE Order backlog FPD Order backlog PVE Order backlog PVE orders and order backlog for and before FY12/4Q are shown together with FPD. Corp IR/January 3, 215Corp IR/April 27, 215 6

8 Orders by Region: SPE+FPD+PVE FY12 FY13 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Japan U.S Europe Korea Taiwan China S.E. Asia, Others Corp IR/January 3, 215Corp IR/April 27, 215 7

9 Balance Sheet Assets Cash & cash equivalents* Liabilities & Net Assets Debt Other liabilities Trade notes, accounts receivables Inventories 214/3/31 215/3/31 Reference:Comparisons with beginning of FY215 Other current assets Tangible assets Intangible assets Investment & other assets /3/31 215/3/31 Changes from beginning of FY215 Assets Cash & cash equivalents +5.8 Trade notes, accounts receivables +4.5 Inventories Tangible assets -4.4 Liabilities Accounts payable +1.6 *Cash and cash equivalents: Cash and deposits + Short-term investments, etc. (Securities in B/S). Net assets Corp IR/January 3, 215Corp IR/April 27, 215 8

10 Inventory Turnover and AR Turnover (Days) Net sales Inventory turnover Accounts receivable turnover Q FY12 1Q FY13 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Turnover days = Inventory or AR at the end of each quarter / last 12 months sales x 365 Corp IR/January 3, 215Corp IR/April 27, 215 9

11 Cash Flow FY214 FY215 Cash flow from operating activities Income before income taxes Depreciation and amortization Impairment loss Increase/decrease in accounts receivable Increase/decrease in inventories Increase/decrease in accounts payable Income taxes paid Others Cash flow from investing activities Capital expenditures Term deposits over 3 months Others Cash flow from financing activities Dividends paid Others Cash and cash equivalents at end of term Term deposits over 3 months at end of term (short-term investments, etc. included) Cash and deposits at end of term (short-term investments, etc. included) Corp IR/January 3, 215Corp IR/April 27, 215 1

12 Appendix Corp IR/April 27, 215

13 Financial Summary FY214 FY215 4Q 1Q 2Q 3Q 4Q 4Q YoY Net sales % SPE % FPD % PVE EC/CN 27.9 Others % Gross profit Gross profit margin % % % % % SG&A expenses % Operating income Operating margin % % % % % +9% +44% Income before income taxes % Net income % R&D expenses % Capital expenditures % Depreciation and amortization % 1. In principle, export sales of Tokyo Electron s mainstay semiconductor and FPD/PV production equipment are denominated in yen. While some settlements are denominated in dollars, exchange risk is hedged as forward exchange contracts are made individually at the time of booking. 2. Profit ratios and YonY changes are calculated using full amounts, before rounding. Corp IR/January 3, 215Corp IR/April 27,

14 SPE Sales by Region Japan U.S. Europe Korea Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q Taiwan China S.E. Asia, Others Region Composition 4Q Q Q 3Q 4Q Q Q Q 3Q 4Q Q 1.5 1Q Q 3Q 4Q 1% 5% % Q 1Q Q 3Q 4Q S.E. Asia, Others China Taiwan Korea Europe U.S. Japan Corp IR/January 3, 215Corp IR/April 27,

15 Segment Information SPE FPD (Semiconductor (Flat Panel Display Production Equipment) Production Equipment) Sales Segment income Sales Segment income PVE (Photovoltaic Panel Production Equipment) Sales Segment income Segment profit margin 4Q 1Q 2Q 3Q 4Q 2.% 23.5% 21.% 25.6% 24.2% Q Q 2Q 3Q 4Q -3.3% -3.2% -3.2%.2% -7.1% Q Q 2Q 3Q 4Q % -383% -24% - 1. Segment income is based on income before income taxes. 2. R&D expenses such as fundamental research and element research are not included in above reportable segments. Corp IR/January 3, 215Corp IR/April 27,

16 Balance Sheet Assets Liabilities & Net Assets Debt Cash & cash equivalents* Other liabilities Trade notes, accounts receivables Inventories Tangible assets Q 1Q 2Q 3Q 4Q Other current assets Intangible assets Investment & other assets Q 1Q 2Q 3Q 4Q Net assets *Cash and cash equivalents: Cash and deposits + Short-term investments, etc. (Securities in B/S). Corp IR/January 3, 215Corp IR/April 27,

17 Number of Employees (Person) FY214 FY215 Japan 8,25 7,166 U.S. 1,652 1,622 Europe Asia 1,559 1,412 Total 12,34 1,844 Corp IR/January 3, 215Corp IR/April 27,

18 Corp IR/January 3, 215Corp IR/April 27,

19 Business Environment and Approach to Raising Profitability Tetsuro Higashi Chairman, President & CEO April 27, 215 Corp IR/April 27, 215

20 FY215 Business Highlights Corp IR/April 27, 215

21 FY215 Business Highlights SPE business: Improved profitability and product competitiveness Sales up 2% YonY, outpaced market growth WFE market share up from 1.5% to 13.6% Expanded market share in our focus areas of cleaning and etching business Sales of the Field Solutions business up around 35% YonY Profitability up due to sustained improvements in development and production efficiency Enhanced profitability and competitiveness of core SPE business Corp IR/January 3, 215Corp IR/April 27, 215 2

22 FY215 Business Highlights Focusing management resources on SPE/FPD business Exit from PVE business progressing on plan Decided on dissolution schedule of TEL Solar AG and debt relief, dissolution and liquidation process to start from June 215, expected to complete in July 216 From this fiscal year will continue only maintenance support, major reduction in losses expected EC/CN business deconsolidated Sold part of shareholding in Tokyo Electron Device, change from consolidated subsidiary to equity-method affiliate Targeting significant profitability uplift through business restructuring Corp IR/January 3, 215Corp IR/April 27,

23 FY215 Business Highlights Net Sales and Gross Profit Margin Net Sales Gross Margin % 31.9% % SPE Sales and Segment Profit Margin 8 SPE Sales SPE Segment Profit Margin % % % FY213 FY214 FY215 FY213 FY214 FY215 *Segment income is based on income before income taxes. Highest ever gross profit margin, matched highest ever SPE segment profit margin Corp IR/January 3, 215Corp IR/April 27,

24 FY215 Business Highlights (Yen) 2 Dividends per share FY28 FY29 FY21 FY211 FY212 FY213 FY214 FY215 FY yen dividends include 2 yen memorial dividend of 5 th anniversary (interim 1, year-end 1) Dividend payout ratio changed from around 2% to around 35% from FY211 year end dividend Highest ever dividends Corp IR/January 3, 215Corp IR/April 27,

25 Business Environment and Strategy Corp IR/April 27, 215

26 SPE Business Environment SPE Capex CY215 WFE capex is expected to rise around 5% YonY. Capex (mainly memory) expected to grow due to strong semiconductor demand driven by buoyant mobile demand and shift to high performance/ low energy servers for data centers DRAM/NAND:Continued active investment to increase production Foundry: Start of 1Xnm cutting edge logic investment Logic: Continued steady investment driven by strong server markets DRAM Logic CY215 WFE Memory 45% Logic Foundry Others 55% NAND Foundry Foundry (Outlook as of April 215) Corp IR/January 3, 215Corp IR/April 27,

27 Drivers of CY215 SPE Capex CY215 capex driven by buoyant mobile demand and shift to high performance/low energy servers Continued active investment in logic and memory Mobile DRAM Bit growth 5-55% Capacity 1GB 2GB/3GB Cutting edge logic high performance/low power 1Xnm FinFET Server DRAM Capacity 3-35% Server/PC SSD Bit growth 55-6% Corp IR/January 3, 215Corp IR/April 27,

28 Quarterly Orders SPE Orders FPD Orders PVE Orders January-March 215 SPE (+7%) FPD 12.6 (+265%) PVE -3.6 Total (+1%) ( ): change from October-December 214 % is calculated using full amounts / / / / / / / / / / / / / / / /1-3 PVE orders for or before 212/1-3 are included in FPD orders. Corp IR/January 3, 215Corp IR/April 27,

29 SPE Orders by Application: Equipment only 1% 8% 6% 4% 2% % /1-12 6/ / / / / / / / / /1-3 Logic & others (MPU, System LSI, Others) Logic foundry Flash DRAM Corp IR/January 3, 215Corp IR/April 27,

30 SPE Business Strategy Cleaning system FY215 results Major uplift in share compared to 213: Highest ever market share driven by our proprietary miniaturization technology for both memory and logic FY216 key issues Accelerate product strategy based on our proprietary technology, increase process steps of single wafer cleaning system Expand applications of dry cleaning system Etching system FY215 results Share up on 213: Higher revenue from patterning and HARC processes for memory Acquired POR for STT-MRAM equipment FY216 key issues Focus on expanding patterning process market Expand applications in HARC process for memory Single Wafer Cleaning System CELLESTA -i Plasma Etch System Tactras STT-MRAM: Spin Transfer Torque-Magnetoresistive Random Access Memory, HARC: High Aspect Ratio Contact Corp IR/January 3, 215Corp IR/April 27,

31 SPE Business Strategy Thermal processing system FY215 results Share up on 213: Expanded both memory and logic applications in the increasingly important ALD market FY216 key issues Focus on the ALD market where sustained growth expected Expand applications of latest model (NT333) Coater/Developer FY215 results Share maintained at high level compared to 213: OEE improvement and lower running cost through defect prevention functions of latest model along with comprehensive support led to high rating by customers FY216 key issues Accelerate development of cutting edge sub-1nm immersion node patterning technology Continue development of next-generation lithography technology (EUV/DSA) OEE: overall equipment efficiency, EUV: extreme ultraviolet, DSA: directed self-assembly ALD System NT333 Coater/Developer CLEAN TRACK LITHIUS Pro Z Corp IR/January 3, 215Corp IR/April 27, 215 3

32 SPE Business Strategy Single wafer deposition system FY215 results Share up on 213: In the expanding metal ALD market, customer penetration of metallization systems (Triase+ EX-II) proceeded as planned, with its excellent thin-film controllability, low temperature, and uniformity PVD equipment for STT-MRAM adopted by customers and received favorable reviews FY216 key issues Customer penetration of Triase+ EX-II in logic Test system/3di FY215 results Share up on 213: new integrated test system adopted by customers, led to lower test costs and received favorable reviews Start of prober production in Taiwan led to improved profitability Metallization System Triase+ EX-II FY216 key issues Customer penetration of Cellcia, accelerate packaging technology development in IME Integrated test system Cellcia STT-MRAM: Spin Transfer Torque-Magnetoresistive Random Access Memory, IME: Institute of Microelectronics Corp IR/January 3, 215Corp IR/April 27,

33 SPE Business Strategy Field Solutions (FS) FY215 results Sales of over 17 billion yen, exceeded the 15 billion yen annual sales target set when FSBU established in 29 FY216 key issues Aim to expand sales in the growing used equipment/refurbishing business Aim to increase service sales by providing new services (emetrics) to lower customers operation costs Sales Installed base 54, units >17 2 FY21 FY215 FY21X Growing expectations of equipment makers with high solutions capability Corp IR/January 3, 215Corp IR/April 27,

34 SPE Business Strategy STT-MRAM Adoption by multiple customers of our equipment with high productivity and thin film controllability Lead technology development with customers, Tohoku university and consortia Possess all the necessary equipment for MTJ formation Features of STT-MRAM Non-volatile memory MTJ PVD Magnetic Anneal MTJ Etch High-speed, low power consumption High density Aim to establish technology for volume production of next-generation memory STT-MRAM: Spin Transfer Torque-Magnetoresistive Random Access Memory MTJ: Magnetic Tunnel Junction Corp IR/January 3, 215Corp IR/April 27,

35 FPD Business Environment and Strategy FPD Capex CY215 demand for LCD panel manufacturing equipment forecast to increase 2% YonY due to increase in capex for large panels and the start of investment in small/medium panels for mobile devices. OLED TV market expected to develop from 217 Business Strategy (Outlook as of April 215) Plan to sustain revenue growth with latest ICP etch system in response to new technological needs for high resolution panels (4K), OLED Aim to expand sales of inkjet printing system for manufacturing OLED panels Inkjet printing system for manufacturing OLED panels Elius 25 Highly efficient usage of materials Atmosphere environment process Corp IR/January 3, 215Corp IR/April 27,

36 FY216 Financial Estimates (FY216 : April 1, March 31, 216) Corp IR/April 27, 215

37 FY216 Financial Estimates Operating income to be improved by 27% due to sales growth greater than market growth FY215 (Actual) FY216 Estimates 1 st Half 2 nd Half Full year YoY change Net Sales % SPE % FPD % PVE Operating income Lower line: OP margin Income before income taxes % % % % +27% +2.2pts % Net income % SPE: Semiconductor Production Equipment FPD: Flat Panel Display Production Equipment PVE: Photovoltaic Panel Production Equipment Corp IR/January 3, 215Corp IR/April 27,

38 R&D Expenses and CAPEX 1 75 R&D Expenses Capex Depreciation FY12 FY13 FY16(E) FY12 FY13 FY16(E) Development investment targeting growth will be maintained at a high level while facilities capex will be limited Corp IR/January 3, 215Corp IR/April 27,

39 FY216 Dividend Forecast Dividend per share (E) Interim Year-end Year Total 65 yen 9 yen 155 yen (Yen) FY FY216(E) FY216 dividend forecast to set a new record again Corp IR/January 3, 215Corp IR/April 27,

40 Pursue Profitable Growth through Technology Inflection Shift to 3D devices and use of new materials is creating growth opportunities: Raise profitability by launching innovative products Aim to further raise profitability by increasing efficiency of development and production Continue cost reductions from design stage onwards Improve quality through integration of development, production and service and reduce manufacturing lead time Net Sales and Operating Margin FY % 25.% FY21X (WFE $37B model) Medium-term goal of 25% OPM or higher Corp IR/January 3, 215Corp IR/April 27,

41 Share Repurchase Plan Up to 12B Share Repurchase Plan Type of shares to be acquired: Shares of common stock Total number of shares to be acquired: Up to 15.4 million shares Total cost of acquisition: Up to 12 billion yen Period of acquisition: From May 14, 215 to May 13, 216 We will continue to utilize our cash resources to further grow our business, develop innovative solutions to increase corporate value. The share repurchase plan was decided in light of future cash flows. We will actively pursue the creation of further shareholder value Corp IR/January 3, 215Corp IR/April 27, 215 4

42 New challenges We will formulate a new medium-term business plan including new initiatives We will review our capital policy and seek to provide enhanced shareholder returns We will take on the challenges of further innovative changes Corp IR/January 3, 215Corp IR/April 27,

43 Disclaimer regarding forward-looking statement Forecast of TEL s performance and future prospects and other sort of information published are made based on information available at the time of publication. Actual performance and results may differ significantly from the forecast described here due to changes in various external and internal factors, including the economic situation, semiconductor/fpd/pv market conditions, intensification of sales competition, safety and product quality management, and intellectual property-related risks. 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. Exchange Risk In principle, export sales of Tokyo Electron s mainstay semiconductor and FPD/PV panel production equipment are denominated in yen. While some settlements are denominated in dollars, exchange risk is hedged as forward exchange contracts are made individually at the time of booking. Accordingly, the effect of exchange rates on profits is negligible. FPD/PV: Flat panel display/photovoltaic Corp IR/January 3, 215Corp IR/April 27,

44 Corp IR/January 3, 215Corp IR/April 27,