Tokyo Electron : Transcript（768KB）

Investor Relations / April 30, 2026 1

‌Forward Looking Statements

• Disclaimer regarding forward-looking statements

  Forward-looking statements with respect to Tokyo Electron'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 situations, 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.

Investor Relations / April 30, 2026

2

Investor Relations / April 30, 2026 3

Good afternoon. I am Kawamoto of Finance Division. I would like to present the consolidated financial summary of the fiscal year ended March 2026.

Financial Summary (Quarterly)

(Billion yen)

1. In principle, export sales of Tokyo Electron's products are 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. FY20xx refers to the financial year ending in March 20xx.

Investor Relations / April 30, 2026 4

I will start with the quarterly financial summary. I will mainly refer to the figures in the blue box.

In the fourth quarter, we generated net sales of 711.8 billion yen, 28.9% increase from

the third quarter when net sales showed a temporary drop due to shipment timing. Accordingly, gross profit was 333.1 billion yen, 41.3% increase from the previous quarter. Gross profit margin was 46.8%, 4.1-percentage-point increase quarter- over-quarter. Although SG&A expenses increased mainly due to R&D expenses increased, SG&A to sales ratio declined, which resulted in 77.1% quarter-over-quarter increase of operating income at 205.6 billion yen. Operating profit margin was 28.9%, increasing by 7.9 percentage points sequentially. Net income attributable to owners of parent was

214.2 billion yen, 80.8% increase quarter-over-quarter, partly due to extraordinary income generated by selling strategic shareholdings.

4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

5

Investor Relations / April 30, 2026

Composition of Net Sales by Region (Quarterly)

（Billion yen）

700

711.8

11.6% Japan

600

500

547.2

10.4%

8.8%

5.1%

15.0%

10.1%

3.2%

555.0

7.0%

10.6%

2.8%

12.2%

14.4%

3.1%

566.5

9.3%

14.1%

4.2%

14.1%

13.3%

3.7%

654.5

6.9%

8.8%

2.4%

17.5%

655.4

8.1%

7.1%

3.1%

22.4%

549.5

11.7%

7.9%

2.6%

16.1%

630.0

8.4%

6.1%

1.7%

21.1%

552.0

7.1%

5.1%

2.3%

27.1%

8.0%

North America

4.2% Europe

24.3% South Korea

400

300

18.3%

3.4%

20.7%

4.3%

19.0%

3.4%

200

20.3%

2.8%

20.3%

6.3%

22.0% Taiwan

3.1%

Southeast Asia,

Others

49.9%

42.7%

100

47.4%

41.3%

34.3%

38.6%

40.3%

31.8%

26.8% China

This slide shows net sales by region.

As for the composition in the fourth quarter, proportion of sales in Taiwan significantly rose by 40% from the previous quarter to 22.0%. Meanwhile, as growth rate of spending for leading-edge nodes was higher than that for mature nodes, proportion of sales in China dropped to 26.8%, 5.0-percentage-point decline quarter-over-quarter. On the full-year basis in the fiscal year ended March 2026, proportion of sales in China was 34.1%.

Financial Summary

(Billion yen)

1. In principle, export sales of Tokyo Electron's products are 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.

Investor Relations / April 30, 2026 6

Now, I will move onto the full-year financial summary.

Since the leading customers continued active investment and our field solution sales were strong, thanks to the increased utilization rate of the customers' fabs, we generated net sales of 2 trillion 443.5 billion yen, 0.5% increase year-over- year, hitting record high, following the fiscal year ended March 2025. Gross profit was 1 trillion

107.8 billion yen, exceeding the 1 trillion yen in the second consecutive year while gross profit margin declined by 1.8 percentage points year-over-year to 45.3%. This is due to soaring costs of parts and materials as well as changes in the product mix. Another factor is the increase of the number of field engineers outside Japan to prepare for the future growth. Operating income was 624.9 billion yen. Operating profit margin was 25.6%, 3.1-percentage-point drop year-over-year. This is because of active R&D investment to prepare for future growth and enhance our competitive edge. R&D expenses were 277.8 billion yen, increasing by 11.1% year-over-year. Net income attributable to owners of parent was 574.4 billion yen, 5.6% increase year-over-year, reaching all-time high. We sold strategic shareholdings and recorded extraordinary income of 115.4 billion yen.

Capital expenditures were 216.0 billion yen, mainly due to the completion of the development buildings in Miyagi and Kumamoto and the production and logistics center in Iwate and procurement of in-house use evaluation tools. Deprecation was

80.9 billion yen, 30.3% increase year-over-year.

Financial Trend (FY2022~FY2026)

（Billion yen）

2,500

2,443.5

60%

2,000

45.3%

1,500

40%

1,000

1,107.8

25.6%

624.9 20%

574.4

500

0 0%

Net income attributable to

owners of parent

Gross profit margin

437.0

471.5

363.9

544.1

574.4

Operating margin

45.5%

29.9%

44.6%

28.0%

45.4%

24.9%

47.1%

28.7%

45.3%

25.6%

ROE 37.2% 32.3% 21.8% 30.3% 29.6%

Net sales reached record high

Investor Relations / April 30, 2026 7

This is a graphic representation of the financial summary shown on the previous page on the chronological basis, for your reference.

ROE was close to 30%, following the previous fiscal year.

‌7%

8

1. SPE: Semiconductor Production Equipment

2. Percentages on the graph show the composition ratio of new equipment sales. Field Solutions sales are not included.

Investor Relations / April 30, 2026

FY2026

FY2025

FY2024

0

• Non-memory:

- Robust investment in leading-edge

equipment

66%

59%

500

62%

• Non-volatile memory:

- Customers' fab utilization improved, and investments showed a gradual recovery. Both revenue and proportion increased

SPE New Equipment Sales by Application

1,000

10%

7%

27%

31%

1,372.7

1,500

31%

• DRAM:

- Investment in HBM and leading-edge technologies remained strong

1,775.4

DRAM

Non-volatile memory

Non-memory (Logic, foundry, others)

1,861.1

（Billion yen）

2,000

This shows SPE new equipment sales by application. In the fiscal year ended March 2026, from the top of this chart, sales to DRAM customers accounted for 31%, non-volatile memory accounted for 10%, and non-memory accounted for 59%.

For DRAM, while investment in advanced technologies such as HBM continued to be strong, investment levels are varied among the customers. As a result, DRAM sales and proportion remained almost unchanged from the previous year.

For non-volatile memory, utilization ratio of our customers' fabs improved significantly and investment has been back on course of recovery. Accordingly, both sales and proportion were in an increasing trajectory.

For non-memory, while investment for mature nodes paused tentatively, investment for advanced nodes was very active. Accordingly, non-memory investment exceeded 1 trillion yen just like in the previous year.

‌9

Investor Relations / April 30, 2026

FY2026

FY2025

FY2024

100

0

324.4

• Customers' fab utilization climbed further;

parts & services and modifications delivered solid growth

435.9

389.1

300

200

104.0

400

• Field Solutions sales for FY2026 were

626.0 billion yen, up 16.3% YoY

149.1

428.5

500

190.0

538.3

600

626.0

Field Solutions Sales

（Billion yen） Used equipment and modification Parts and services

This slide shows the Field Solutions sales.

In the fiscal year ended March 2026, Field Solutions sales were 626.0 billion yen. Along with further improvements in utilization rate of the customers' fabs, our parts and services business grew and there were quite a few modifications to enhance productivity. Accordingly, Field Solutions sales were strong.

10

Balance Sheet (Quarterly)

Assets

(Billion Yen)

2,625.9

2,860.9

(Billion Yen)

2,625.9

Liabilities and Net Assets

2,860.9

2,667.0

2,635.0

2,509.3

Cash and cash equivalents*

2,509.3

Liabilities

Notes and accounts

receivable (trade, and contract assets)

Inventories

749.1

90.4 90.1 Other current assets

75.3

85.4

Net assets

69.7

441.7

35.8

347.6

Q4 FY2025

480.3

561.2 573.9 589.3 Tangible assets

35.5

400.2

35.7

397.4

36.4

388.8

Q1

Q2

Q3

37.5 Intangible assets

398.6 Investment and other assets

Q4

Q4 FY2025

Q1

Q2

Q3

Q4

FY2026

FY2026

*Cash and cash equivalents: "Cash and deposits" + "Short-term investments", etc. ("Securities" in Balance Sheet).

Investor Relations / April 30, 2026

This slide shows the balance sheet.

Total assets were 2 trillion 860.9 billion yen. Cash and cash equivalents were 506.2 billion yen, increasing by 87.7 billion yen from the previous quarter. Notes and accounts receivable were 525.8 billion yen, rising by 124.3 billion yen sequentially. Inventories were 713.1 billion yen, decreasing by 12.2 billion yen from the previous quarter. Tangible assets were 589.3 billion yen, increasing by 15.3 billion yen quarter-over-quarter.

For the liabilities and net assets shown on the right-hand side, liabilities were 791.0 billion yen, increasing by 161.2 billion yen quarter-over-quarter. Net assets were 2 trillion 69.9 billion yen, rising by 64.7 billion yen sequentially.

11

Cash Flow (Quarterly)

(Billion Yen)

300

205.7 239.0

200

100

33.2

0

-23.0

-149.9

-100

-79.9

-46.9

-150.8

-200

Share Repurchase*2

-300

*1 Cash flow from investing activities excludes changes in time deposits and short-term investments.

*2 The amount for share repurchase excludes the cost incurred to purchase odd-lot shares.

*3 Free cash flow = "Cash flow from operating activities" + "Cash flow from investing activities" (excluding changes in "Time deposits" and "Short-term investments").

*4 Cash on hand includes "Cash and cash equivalents" + "Time deposits and short-term investments" with original maturities of more than three months.

Investor Relations / April 30, 2026

This slide shows the cash flow.

The cash inflow from operating activities in the fourth quarter was 205.7 billion yen. The cash inflow from investing activities was 33.2 billion yen, as a result of acquisition of tangible assets and sale of investment in securities among others. The cash outflow from financing activities was 150.8 billion yen due to the share repurchase.

Free cash flow was plus 239.0 billion yen. The full-year free cash flow was also positive at 433.2 billion yen. Both full-year and quarterly free cash flow hit record high.

‌*2

272.7

287.4

100

182.4

121.9

0

FY2021

FY2022

FY2023

FY2024

FY2025

FY2026

*1 https://www.tel.com/news/ir/2026/kn008f00000000ho-att/20260327_002_e.pdf

*2 The year-end dividend for FY2026 is provisional and pending approval by the Board of Directors.

Combined with share buyback, total return amount is expected to be record high

Investor Relations / April 30, 2026 12

121.9

Dividend

200

119.9

Share Repurchase

267.9

31.3

Commemorative

dividend

219.3

300

149.9

302.4

*1

149.9

400

437.4

422.7

Total Return Amount

(Billion yen)

500

Finally, I will present total return amount.

The share repurchase we announced in February 2026 was completed. The total acquisition amount was 149.9 billion yen. At the Board of Directors meeting held on March 27, 2026, it was decided to cancel 3 million 600 thousand treasury stocks on April 30, 2026. Total return amount in the fiscal year ended March 2026 was 437.4 billion yen, which exceeded that in the previous fiscal year, reaching all-time high.

This concludes my presentation. Thank you very much.

Investor Relations / April 30, 2026 13

I am Kawai. Thank you very much for joining us today. I will present "Business Environment and Financial Estimates".

‌14

Investor Relations / April 30, 2026

• Advanced Packaging

- PORs in multiple products

• Under Construction

- New production building at Miyagi: implementing TEL's Smart Production concept

• Net Income

  • Q4: 214.2 billion yen

  • FY2026: 574.4 billion yen

• Memory

- Leading position in major processes such as DRAM capacitors, HBM interconnects

• Construction Completed

  • R&D center: Miyagi and

    Kumamoto

  • Production & logistics center at Iwate

• Net Sales

  • Q4: 711.8 billion yen

  • FY2026: 2,443.5 billion yen

PORs

in Growth Sectors

Infrastructure Secured for Future Growth

Record-high

Net Sales & Net Income

Business Highlights for FY2026

Let me start with the FY2026 full-year business highlights.

In FY2026, we generated net sales of 2 trillion 443.5 billion yen, hitting record high. In addition to the active investment for advanced logic and DRAM/HBM for AI servers starting in the previous fiscal year, investment for 3DNAND, which had been muted for a long time, finally showed some signs of recovery. Along with improvement of utilization rate of customers' fabs, our Field Solutions sales grew as well. We delivered record full-year net income of 574.4 billion yen as we strived to improve capital efficiency and recorded extraordinary income by selling strategic shareholdings.

The R&D centers in Miyagi and Kumamoto and the production and logistics center in Iwate, which we had been constructing to prepare for next-phase growth, were completed. We also started constructing a new production building in Miyagi which adopts the smart production concept to support manufacturing in the future.

To promptly address rapidly-expanding WFE market, we are securing robust and strong capacity.

Winning PORs in the advanced domains is another critical FY2026 highlight which will contribute to our sales growth in the future. For memory applications where we are strong, we won high market shares in major etching processes including capacitor process and HBM interconnect process. For advanced packaging which showed a remarkable growth, supported by our broad product portfolio, we won PORs for multiple products ranging from frontend process to 3D integration and testing.

‌Business Environment (WFE Market Outlook as of April 2026)

WFE Market Trend

• WFE Market Outlook: (CY2026-27)

($B)

• Projected range:

  150 $150B-170B/year

  (20%+ growth vs CY2025)

  100

• Leading edge applications:

  30%+ growth

  50

• Geopolitical risks require close

monitoring

0

CY2024 CY2025 CY2026 CY2027

Investor Relations / April 30, 2026

15

Next, I will present the business environment.

For two years from CY2026 to 2027, we expect the WFE market to grow by 20% or more from CY2025, ranging from 150 to 170 billion dollars for each year.

For spendings in the high-end devices we focus our efforts on, as we are currently

receiving strong inquiries, we expect 30% or more year-over-year growth.

As for ongoing geopolitical risks, for the time being, we do not see any changes in our customers' investment trend. When the blockade of the Strait of Hormuz is protracted, however, we must pay close attention as there is a concern about shortage of parts and materials triggered by the supply chain disruption.

16

Investor Relations / April 30, 2026

FY2027 Revenue Drivers

Now I will present our FY2027 sales growth drivers under such business environment. Among the investment for high-end devices which will drive market growth this year, coaters/developers and etching systems are expected to make a significant contribution to our sales.

In the coater/developer business, in particular, our share in the global market exceeds 90%. We receive inquiries regarding investment both for capacity enhancement and device scaling from almost all customers as DRAM customers adopt EUV technology and logic customers introduce EUV multi-patterning. Accordingly, FY2027 coater/developer sales are expected to grow by 50% or more year-over-year.

For etching system, we are strong in the field of dielectric etching, recording 50% or more global market share at present. For DRAM capacitor process, we have won PORs from all leading customers and maintain a very high market share in the interconnect process which is growing for HBM. For the GAA or gate all around structure, which was first adopted by 2 nm logic, business opportunities are expanding in gate etching and isotropic etching. Driven by these factors, FY2027 etching system sales are expected to increase by nearly 30% year-over-year.

As we have a broad product portfolio, we are blessed with numerous growth opportunities also for advanced packaging. In the business of prober for advanced logic, where we have a compelling market share, the sales are growing steadily and expected to top 100 billion yen in this fiscal year. The sales of bonder/debonder for HBM, permanent wafer bonding for logic 3D integration, and bonder for 3DNAND are growing. In FY2027, sales for advance packaging, including coater/developer, etch systems, deposition systems, are expected to grow by 60% or more year-over-year.

17

Investor Relations / April 30, 2026

Financial Estimates for FY2027

（Billion Yen）

• FY2027 H1：

  Forecast record high of net sales, gross profit and operating profit driven by AI server demand

• Incremental shipping for DRAM and leading-edge logic in latter CY2026

• Monitoring the impact of blockade in the Strait of Hormuz

Next, I will present the financial estimates.

First of all, let me talk about a change of the financial estimates disclosure period. While the SPE market is expected to grow in the mid and long term, the size of customers' investment gets bigger than before and their investment plans may change in the middle of fiscal year due to supply-demand balance, customers' strategy and geopolitical factors. Particularly, as investment of some customers has been coming extremely big in size, impacts of their movements on our group performance are getting relatively bigger. Taking account of these factors, although in the past we disclosed a full-year financial estimates of following fiscal year at the timing of year-end financial announcement, from FY2027 onward, we will disclose financial estimates of the first half of fiscal year, and thereby we will strive to share more timely and realistic information. For the financial estimates of the first half of FY2027, driven by the strong demand for AI servers, we expect net sales of 1 trillion 570 billion yen, gross profit of 715 billion yen, and operating income of 431 billion yen, all of which are expected hit half-year record.

For the second half of FY2027, stronger growth than the first half is expected as we

expect further increase of shipment mainly to DRAM and advance logic customers.

As I said before, we must pay close attention to impacts of the blockade of the Strait of Hormuz, but at present, we do not see any changes in our customers' investment plans. We have secured parts and materials we will need for tools to be sold in the first half of FY2027.

‌18

* Percentages on the graph show the composition ratio of new equipment sales. Field solutions sales are not included.

SPE new equipment sales to grow by 41% YoY

Investor Relations / April 30, 2026

FY2027 H1

Estimate

FY2026 H2

FY2026 H1

0

57%

61%

200

57%

400

DRAM

Non-volatile memory Non-memory

（Logic, foundry, others）

8%

27%

12%

600

11%

35%

800

32%

850.1

925.3

1,000

1,200.0

（Billion yen）

1,200

FY2027 SPE New Equipment Sales Forecast

Sales by Application

This slide shows FY2027 SPE new equipment sales forecast.

The new equipment sales in the first half of this fiscal year are expected to grow by 41% year-over-year to 1 trillion 200 billion yen. The breakdown by application is shown on this slide. Driven by the AI server demand, sales of our systems for high-end devices are expected to increase.

‌216.0

200

190.0

162.1

121.8

100 74.4

80.9

100.0

42.9

52.3

62.1

0

Oshu-city, Iwate Prefecture

Completed in November 2025

Kurokawa-gun, Miyagi Prefecture

Completion scheduled for summer 2027

FY2023 FY2024 FY2025 FY2026 FY2027

Estimate

Continue strengthening competitiveness with a focus on R&D investment

Leveraging this solid infrastructure to steadily capture future gains

Investor Relations / April 30, 2026 19

277.8

FY2027 R&D Expenses and Capex Plan

Miyagi Development Building No. 3

Etch system

Kumamoto Process Development Building

Coater/developer, cleaning system

（Billion Yen）

400 R&D expenses

330.0

300

250.0

Depreciation

191.1

202.8

200

100

0

Kurokawa-gun, Miyagi Prefecture

Completed in April 2025

Tohoku Production and Logistics Center

Deposition system

Koshi-city, Kumamoto Prefecture

Completed in October 2025

Miyagi Innovative Production Center

Etch system

FY2023 FY2024 FY2025 FY2026 FY2027

Estimate

（Billion Yen）

300 Capex

This slide shows our plan for R&D expenses and capex.

In FY2027, we plan full-year R&D expenses of 330 billion yen. We will actively promote R&D to enhance the foundation of our technology competitive edge and support semiconductor technology innovation. For capex, we plan to spend 190 billion yen on the full year basis.

We plan to acquire equipment for the new development buildings whose construction was completed in FY2026, and we plan to complete the construction of a new production building adapting the smart fab in summer of 2027. We will utilize the robust infrastructure shown on this slide and capitalize on future business opportunities to maximize our corporate value.

‌0

H1 H2 H1 H2 H1 H2 H1

FY2024 FY2024 FY2025 FY2025 FY2026 FY2026 FY2027

(Estimate)

Dividend per share for H1 FY2027 (interim dividend) is expected to be 361 yen

Investor Relations / April 30, 2026 20

We will flexibly consider share buybacks

100

148

Dividend payout ratio: 50%

Annual DPS of not less than 50 yen

We will review our dividend policy if the company does not generate net income for two consecutive fiscal years

200

245

264

265

TEL shareholder return policy

327

300

364 361

Dividend Forecast

Dividend per Share

(Yen)

Finally, I will present the dividend forecast.

Along with the revision of financial estimates disclosure period, for the dividend forecast as well, we present the forecast of interim dividend alone. FY2027 interim dividend is expected to be 361 yen per share, maintaining a high level just as the second half of FY2026.

This concludes my presentation. Thank you very much for your kind attention.

‌

‌Appendix

Investor Relations / April 30, 2026

22

‌Quarterly Yearly

SPE New Equipment Sales by Application (Quarterly)

(Billion yen)

600

DRAM

Non-volatile memory

Non-memory (Logic, foundry, others)

540.1

510.6

503.9

500

455.0

417.0

431.5

415.0

34%

400

35%

37%

395.0

27%

385.1

30%

26%

26%

26%

300

2%

8%

7%

3%

8%

36%

12%

14%

10%

8%

200

72%

63%

71%

57%

58%

51%

64%

59%

100

56%

0

Q4 FY2024

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2025

FY2026

1. SPE: Semiconductor Production Equipment

2. Percentages on the graph show the composition ratio of new equipment sales. Field Solutions sales are not included.

Investor Relations / April 30, 2026 24

‌28

Source

Gartner®, Market Share: Semiconductor Wafer Fab Equipment, Worldwide, 2025, Bob Johnson and Menglin Cao, 2 April 2026, Revenue from Shipments basis. Chart created by TEL based on Gartner research. Gartner research. Calculations performed by TEL.

Coater/Developer: Photoresist Processing (Track), Dry Etch System: Dry Etch, Deposition System: Tube CVD + Atomic Layer Deposition Tools + Oxidation/Diffusion Furnaces + Nontube LPCVD, ALD: Atomic Layer Deposition Tools, CVD: Tube CVD + Nontube LPCVD, Oxidation/Diffusion: Oxidation/diffusion Furnaces, Cleaning System: Single Wafer Processors + Wet Stations + Batch Spray Processors + Scrubbers + Other Clean Equipment, W afer Bonder: W afer Bonder.

GARTNER is a trademark of Gartner, Inc. and its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those

vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner's business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the "Gartner Content") represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Presentation), and the opinions expressed in the Gartner Content are subject to change without notice.

Investor Relations / April 30, 2026

Oxidation/Diffusion

CVD

ALD

31%

38%

15%

Wafer Bonder

Cleaning System

Deposition System

Dry Etch System

Coater/Developer

91%

27%

20%

27%

23%

World Market Share of Major Products (CY2025)

‌Notice

You may not copy or disclose to any third party without prior written consent with TEL.

Tokyo Electron

and "TEL" are trademarks of Tokyo Electron Limited.

Investor Relations / April 30, 2026

29