Slide 1: Q2 FY2026 (July - September 2025) Financial Announcement
Q2 FY2026 (July - September 2025) Financial Announcement 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 Investor Relation
Slide 2: Forward Looking Statements
Forward Looking Statements 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 fro
Slide 3: Q2 FY2026 Consolidated Financial Summary
Q2 FY2026 Consolidated Financial Summary October 31, 2025 Hiroshi Kawamoto SVP & GM, Division Officer of Finance Division Investor Relations / October 31, 2025 3
Slide 4: Financial Summary (Quarterly)
Financial Summary (Quarterly) (Billion yen) FY2025 FY2026 vs. vs. Q2 Q3 Q4 Q1 Q2 Q1 FY2026 Q2 FY2025 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
Slide 5: Financial Performance (Quarterly)
Financial Performance (Quarterly) (Billion Yen) 60% 630.0 600 45.2% 40% 400 25.1% 20% 200 158.4 123.8 0 0% 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 Gro
Slide 6: Financial Summary (Semiannual)
Financial Summary (Semiannual) (Billion yen) Reference: FY2025 FY2026 vs. vs. H1 FY2026 H2 FY2025 H1 FY2025 Estimate H1 H2 H1 (As of July 31) 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
Slide 7: Composition of Net Sales by Region (Quarterly)
Composition of Net Sales by Region (Quarterly) （Billion yen） 700 654.5 655.4 630.0 6.9% 8.1% 600 547.2 555.0 566.5 549.5 8.4% Japan 8.8% 7.1% 6.1% North America 7.0% 9.3% 2.4% 3.1% 1.7% Europe 500 463.6 10.4% 11.7% 10.6% 17.5% 427.8 8.8% 2.8% 14.1% 22.4% 7.9% 21.1% South Korea 12.4% 5.1% 4.2% 2.6% 4
Slide 8: SPE New Equipment Sales by Application (Quarterly)
SPE New Equipment Sales by Application (Quarterly) (Billion yen) 600 DRAM Non-volatile memory 510.6 503.9 Non-memory (Logic, foundry, others) 500 22% 17% 455.0 431.5 417.0 415.0 25% 12% 35% 37% 395.0 400 22% 27% 353.0 26% 16% 17% 27% 30% 26% 315.4 29% 12% 26% 31% 40% 2% 8% 300 31% 3% 16% 27% 24% 12%
Slide 9: Field Solutions Sales (Quarterly)
Field Solutions Sales (Quarterly) (Billion yen) 200 160.3 150 139.5 141.5 138.9 141.2 119.3 118.1 104.4 104.4 100 50 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY2024 FY2025 FY2026 Investor Relations / October 31, 2025 9
Slide 10: Balance Sheet (Quarterly)
Balance Sheet (Quarterly) Assets Liabilities and Net Assets (Billion Yen) (Billion Yen) 2,625.9 2,667.0 2,625.9 2,667.0 2,517.8 2,501.9 2,509.3 2,517.8 2,501.9 2,509.3 496.2 455.2 Cash and cash equivalents* 295.5 367.5 662.3 Liabilities 525.5 770.7 636.5 Notes and accounts 719.4 703.8 510.9 393.2 41
Slide 11: Cash Flow (Quarterly)
Cash Flow (Quarterly) (Billion Yen) 300 200 175.8 89.1 100 0 -23.0 -1.0 -90.2 -100 -86.7 -79.9 -46.9 -200 Share Repurchase -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
Slide 12: Business Environment and Financial Estimates
Business Environment and Financial Estimates October 31, 2025 Toshiki Kawai Representative Director, President & CEO Investor Relations / October 31, 2025 12
Slide 13: Market Environment (WFE Market Outlook as of October, 2025)
Market Environment (WFE Market Outlook as of October, 2025) 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, expec
Slide 14: Growing Opportunities: Scaling x Heterogeneous Integration
Growing Opportunities: Scaling x Heterogeneous Integration • DRAM Etchers for Interconnect: Etch >500 B yen Growth driven by increased investment in HBM with more interconnect layers Cumulative sales over 500 billion yen expected by 2030 Bonder • 3D Integration Equipment including Bonders: Laser >50
Slide 15: Financial Estimates for FY2026
Financial Estimates for FY2026 (Billion Yen) Reference: FY2026 FY2026 （Estimate as of July 31） FY2025 (Actual) Full Year H1 (Actual) H2 (Updated) vs FY2025 Adjustments* H2 Full Year (Updated) 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 1,146.2 538.8 540.1 1,079.
Slide 16: FY2026 SPE New Equipment Sales Forecast
FY2026 SPE New Equipment Sales Forecast Sales by Application (Billion Yen) 1,200 1,014.5 1,000 846.6 850.1 880.0 800 36% DRAM 26% 27% 31% 600 3% 10% Non-volatile memory 12% 11% 400 Non-memory 71% (Logic, foundry, others) 54% 61% 58% 200 0 FY2025 H1 FY2025 H2 FY2026 H1 FY2026 H2 Actual Estimate Perce
Slide 17: FY2026 R&D Expenses and Capex Plan
FY2026 R&D Expenses and Capex Plan Development Building No. 3 Process Development Building Etch system Coater/developer, cleaning system （Billion Yen） R&D expenses 290.0 300 250.0 191.1 202.8 200 158.2 100 0 Kurokawa-gun, Miyagi Prefecture Koshi-city, Kumamoto Prefecture FY2022 FY2023 FY2024 FY2025
Slide 18: FY2026 Dividend Forecast
FY2026 Dividend Forecast Dividend per Share (Yen) 800 TEL shareholder return policy 592 570 (1,711) Commemorative (1,776) 533 Dividend payout ratio: 50% 600 (1,599) 467 Annual DPS of not less than 50 yen* dividend (1,403) 393 (1,179) We will review our dividend policy if the company does not generat
Slide 19: TEL
TEL TOKYO ELECTRON