Tokyo Electron Device Limited · TSE:2760
Tokyo Electron Device — H1 FY2022 Earnings Presentation
36 slides from Tokyo Electron Device's earnings presentation, Oct 29, 2021
Slide 1: Interim Financial Briefing for the Fiscal Year Ending March 31, 2022
Interim Financial Briefing for the Fiscal Year Ending March 31, 2022 October 29, 2021 Copyright © Tokyo Electron Device LTD. All Rights Reserved.
Slide 2: Agenda
Agenda Financial Report Corporate Director Yukio Saeki Forecast for the Fiscal Year Ending March 31, 2022 President & Representative Director Atsushi Tokushige Copyright © Tokyo Electron Device LTD. All Rights Reserved. 2
Slide 3: Financial Report
Financial Report Corporate Director Yukio Saeki Copyright © Tokyo Copyright © Electron Device Device Tokyo Electron LTD. AllLTD. Rights All Reserved. Rights Reserved. 3
Slide 4: Topics Concerning Interim Financial Results for the Fiscal Year Ending March 31, 2022
Topics Concerning Interim Financial Results for the Fiscal Year Ending March 31, 2022 Year-on-Year Comparison: Higher sales and income Net sales: 33.7％ increase Ordinary income: 96.7％ increase Net income attributable to owners of parent: 221.4% increase TED adopted a resolution to submit an applicat
Slide 5: Summary of Financial Results: Comparison with Prior Year
Summary of Financial Results: Comparison with Prior Year (Million yen) FY2022 FY2021 Interim FY2022 Interim Change Revised 1st Half Forecast Net sales 61,901 82,780 20,878 81,000 Cost of sales 53,126 71,517 18,391 Gross profit 8,775 11,262 2,486 Selling, general & administrative 7,653 8,505 851 expe
Slide 6: Summary of Financial Results: Change in Net Sales
Summary of Financial Results: Change in Net Sales FY2021 CN Business EC Business EC Business FY2022 Interim net sales (Distribution) (PB Business) Interim net sales ▲¥ 0.4 bill. ¥20.9 bill. ¥ 0.4 bill. ¥82.8 billion ¥61.9 billion * Amounts of change are rounded off In the segment categories, the PB
Slide 7: Sales and Income by Segment
Sales and Income by Segment • CN Business: Net sales were down due to the cancellation of agency agreements and adoption of new accounting standards; SG&A expenses were up due to an increase in employees, resulting in lower segment income • EC Business: Despite semiconductor supply problems, expande
Slide 8: Segment Information: CN Business (1/2)
Segment Information: CN Business (1/2） Sales Component Ratios by Product Category • Network-related products: Firm sales to data centers and cloud business operators • Storage-related products: Lower sales due to cancelation of agency agreements • Maintenance and monitoring services: Firm sales Secu
Slide 9: Segment Information: CN Business (2/2)
Segment Information: CN Business (2/2） Sales Component Ratios By Field • Lower sales to system integrators due to cancellation of agency agreements • Higher sales to data centers and cloud business operators in conjunction with increases in telecommunications volumes Telecommunications Carriers Data
Slide 10: Segment Information: EC Business (1/2)
Segment Information: EC Business (1/2) Sales Component Ratios by Product Category • Analog ICs: Substantial increase in sales of industrial equipment • Boards, electronic components, etc.: Lower sales due to cancellation of agency agreements Memory ICs Software & Services Boards, Electronic Analog I
Slide 11: Segment Information: EC Business (2/2)
Segment Information: EC Business (2/2) Sales Component Ratios by Application • Higher sales in all areas • Substantial increase in sales of industrial equipment, in part due to expanded trade rights Computers & Peripherals Consumer Automotive Communications Appliances & Industrial Equipment Equipmen
Slide 12: Consolidated Overseas Subsidiaries: Net Sales—EC Business
Consolidated Overseas Subsidiaries: Net Sales —EC Business • Automotive equipment and computers & peripherals: Higher sales Rate of FY2021 Interim FY2022 Interim Change Change Consolidated overseas subsidiaries net sales 13,123 20,931 7,808 59.5% (million yen) Consolidated overseas subsidiaries net
Slide 13: PB Business: Net Sales—EC Business
PB Business: Net Sales—EC Business • Design & Manufacturing Services: Recovery in sales for medical equipment, broadcasting equipment, and semiconductor manufacturing equipment • TED Nagasaki: Firm sales for semiconductor manufacturing equipment • FAST: Firm sales for panel inspection devices (Milli
Slide 14: Balance Sheet
Balance Sheet Assets Liabilities & Net Assets • Accounts receivable decreased as a result of • Borrowings were repaid in conjunction collection of sales receivables with a decrease in operating capital • Tangible non-current assets increased as a result of a land and building exchange by TED Nagasak
Slide 15: Statement of Cash Flows
Statement of Cash Flows (Million yen) 2021.3.31 Operating Investment Financial Exchange 2021.9.30 Balance of C/F C/F C/F differences, Balance of Cash etc. Cash 3,467 ▲173 ▲4,506 19 5,391 4,197 Copyright © Tokyo Electron Device LTD. All Rights Reserved. 15
Slide 16: Changes in Orders Received
Changes in Orders Received • CN Business: Firm orders from data centers and cloud business operators • EC Business: Contribution from expanded trade rights since the second quarter of FY2021, effects from tight semiconductor supplies since the third quarter; tight supplies will continue in FY2022 an
Slide 17: Forecast for the Fiscal Year Ending March 31, 2022
Forecast for the Fiscal Year Ending March 31, 2022 President & Representative Director Atsushi Tokushige Copyright © Tokyo Copyright © Electron Device Device Tokyo Electron LTD. AllLTD. Rights All Reserved. Rights Reserved. 17
Slide 18: Assumptions of the Business Forecast for the Second Half (1/2)
Assumptions of the Business Forecast for the Second Half of the Fiscal Year Ending March 31, 2022 (1/2) Effects from the COVID-19 Pandemic Vaccinations are proceeding, but time will be required for the pandemic to settle On the other hand, many manufacturing business are recovering before the
Slide 19: Assumptions of the Business Forecast for the Second Half (2/2)
Assumptions of the Business Forecast for the Second Half of the Fiscal Year Ending March 31, 2022 (2/2) Status of semiconductor supply and demand The sense of tight supply and demand continued through the first half, but there will be improvement in the second half The sense of tight supply and
Slide 20: Forecast of Financial Results for the Fiscal Year Ending March 31, 2022
Forecast of Financial Results for the Fiscal Year Ending March 31, 2022 (Million yen) FY2021 FY2022 YoY Change 1st Half 2nd Half Full Year Rate of Full year Change Actual Forecast Forecast Change Net sales 143,268 82,780 89,219 172,000 28,731 20.1% CN Business 23,933 10,002 13,797 23,800 ▲133 ▲0.6%
Slide 21: Priority Issues for the Second Half of the Fiscal Year
Priority Issues for the Second Half of the Fiscal Year Ending March 31, 2022 23,933 23,800 (Million yen) CN Business Promote sales of security products 13,507 13,797 Promote sales of storage and network products 10,426 10,002 0 Expand the service business (maintenance & FY2021 21/3月期 FY2022 (p
Slide 22: Measures for the Second Half (1/2)
Measures for the Second Half of the Fiscal Year Ending March 31, 2022 (1/2) Promote Sales of Security Products Zero Trust Security Products Network security Cloud security Security monitoring & operation Cloud security * Zero Trust Security An approach to security whereby the safety of all accesses,
Slide 23: Measures for the Second Half (2/2)
Measures for the Second Half of the Fiscal Year Ending March 31, 2022 (2/2) Reinforce development and sales of private brand products Enhance the functions of the TED Robot Center (TRC) Develop control systems Develop masterless picking Integrate FAST and TED engineering Accelerate elemental
Slide 24: Dividends Per Share
Dividends Per Share FY2022 FY2020 FY2021 9/6 Revised 10/28 Revised Interim ¥40 ¥40 ¥95 ¥105 Year-End ¥50 ¥85 ¥95 ¥100 Dividend Payout Ratio 205 (yen) 200 100 125 Target of 40% consolidated 93 90 payout ratio 66 105 Pay stable and continuous dividends 0 41.7 40.3 40.1 40.0 39.5 (%)0.0% FY2018 FY2
Slide 25: Cautionary Notes Regarding this Document
Cautionary Notes Regarding this Document The forward-looking projections in this document were developed based on information available at this time. Please note that the Company’s actual future results may differ from those indicated in this document due to various factors that have direct and indi
Slide 26: Supplementary Materials
Supplementary Materials Copyright © Tokyo Copyright © Electron Device Device Tokyo Electron LTD. AllLTD. Rights All Reserved. Rights Reserved. 26
Slide 27: List of Supplementary Materials
List of Supplementary Materials Medium-Term Management Plan VISION 2025 P28ーP31 CN Business: Sales Component Ratios by Product Category P32 EC Business: Sales Component Ratios by Product Category P33 EC Business: Sales Component Ratios by Application P34 Product Categories P35 Changes in
Slide 28: Medium-Term Management Plan VISION 2025
Medium-Term Management Plan VISION 2025 BUSINESS ENVIRONMENT OUR MISSION Society 5.0 to Arrive DRIVING DIGITAL TRANSFORMATION Highly efficient smart society amid Providing products and services that can Slow Economic Growth achieve digital transformation, thus contributing to the sustainable develop
Slide 29: Our Vision
OUR VISION To become a manufacturer with technology trading company functions Evolving technology The kind of manufacturer trading company functions we want to be Business model that will generate Manufacturing system manufacturer profits from data, service, and stock Original design manufactu
Slide 30: VISION 2025 Financial Model
VISION 2025 Financial Model Pursuing Sustainable Growth with Profit and Revenue Growth (Profit Growth Outpacing Revenue Growth) Fiscal 2025 Net sales ¥200.0 billion ±10% Ordinary income ratio >5％ ROE >15 % Percentage of Ordinary income ratio total sales CN Business 20 % ＞ 13 % EC Business 70 %
Slide 31: Medium-Term Management Plan: Results and Plan
Medium-Term Management Plan: Results and Plan VISION2020 VISION2025 Net sales (¥100 mill.) More than 15.0% Ordinary income ratio 11.4% ROE 9.5% 8.8% 6.8% 2,000 ±10％ 4.2% 4.3% 3.2% 1,720 1,598 1,410 1,353 1,432 More 1,318 1,178 than 1,116 5.0％ 5.0% 3.2% 3.6% 2.6% 2.2% 1.4% 1.0% 1.7% 1.2% 0 0.0% FY201
Slide 32: CN Business: Sales Component Ratios by Product Category
CN Business: Sales Component Ratios by Product Category Security-Related Products Network-Related Products Storage-Related Products Maintenance & Monitoring Services FY2021 Interim 28% 22% 6% 44% FY2022 30% 16% 10% 44% Interim Rate of Product Main Causes Main Suppliers Change F5 Networks Network-Rel
Slide 33: EC Business: Sales Component Ratios by Product Category
EC Business: Sales Component Ratios by Product Category Memory ICs Software & Services Boards, Electronic Analog ICs Micro Processors Logic ICs Components, etc. PB FY2021 Interim 26% 25% 14% 5% 17% 6% 7% FY2022 37% 22% 15% 4% 11% 5% 6% Interim Rate of Product Main Causes Main Suppliers Change Contri
Slide 34: EC Business: Sales Component Ratios by Application
EC Business: Sales Component Ratios by Application Communications Devices Automotive Consumer Industrial Equipment Equipment Computers & Peripherals Devices FY2021 Interim 51% 18% 18% 6% 7% FY2022 46% 20% 18% 8% 8% Interim Rate of Application Main Uses TEL Trends Change Increases in analog ICs and l
Slide 35: Product Categories
Product Categories Category Main Products Functions Network-related Network load distribution devices Distribute Internet connection loads products Ethernet switches Switching hubs Connect to and store large volumes of data at high Storage-related products Flash storage CN speed Business Protect com
Slide 36: Changes in Orders Received and Backorders (EC Business)
Changes in orders received and backorders (EC Business) (Million yen) 120,000 Orders received 103,318 100,000 Back orders (end of term) 70,513 69,027 80,000 60,736 60,000 54,136 49,230 36,992 40,000 24,223 29,362 30,815 24,718 25,960 20,000 0 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 Copyright © Tokyo Electro
Tokyo Electron Device — H1 FY2022 Earnings Presentation on 6ix