#1TEL Q1 FY2024 (April - June 2023) Financial Announcement August 10, 2023 Agenda: ■ Q1 FY2024 Consolidated Financial Summary Hiroshi Kawamoto, Senior Vice President & General Manager, Finance Unit ■ Business Environment and Financial Estimates Toshiki Kawai, Representative Director, President & CEO WOKING ww 60 years#2Forward 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 from the business plan described here due to changes in various external and internal factors, including the economic situation, geopolitical risk, semiconductor/FPD* market conditions, intensification of sales competition, safety and product quality management, intellectual property-related risks and impacts from COVID-19. 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 exchange rate fluctuations on profits is negligible, unless extreme fluctuations occur. * FPD: Flat panel display Investor Relations / August 10, 2023 TEL 2#3TEL Q1 FY2024 Consolidated Financial Summary August 10, 2023 Hiroshi Kawamoto Senior Vice President & General Manager, Finance Unit WOKING ww 600 years#4Financial Summary FY2023 FY2024 QoQ (Billion Yen) YOY Q1 Q2 Q3 Q4 Q1 vs. Q4 FY2023 vs. Q1 FY2023 Net sales Gross profit Gross profit margin 473.6 709.2 467.8 558.2 391.7 -29.8% -17.3% 200.5 328.2 203.9 251.6 162.3 -35.5% -19.1% 42.3% 46.3% 43.6% 45.1% 41.4% -3.7pts -0.9pts SG&A expenses 83.0 95.6 89.1 98.9 79.8 -19.2% -3.8% Operating income 117.5 232.6 114.7 152.7 82.4 -46.0% -29.9% Operating margin 24.8% 32.8% 24.5% 27.4% 21.0% -6.4pts -3.8pts Income before income taxes 117.6 235.2 116.3 155.6 83.0 -46.7% -29.4% Net income attributable to 88.0 179.2 85.5 118.6 64.3 -45.8% -27.0% owners of parent R&D expenses 42.1 49.1 46.1 53.7 43.6 -18.8% 3.6% Capital expenditures 18.0 17.3 12.5 26.3 39.3 49.2% 117.7% Depreciation and amortization 9.7 9.8 11.2 12.0 10.6 -12.0% 9.0% 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 exchange rate fluctuations on profits is negligible, unless extreme fluctuations occur. 2. Profit ratios are calculated using full amounts, before rounding. Investor Relations / August 10, 2023 TEL 4#5Financial Performance (Quarterly) (Billion Yen) 800 600 400 200 0 391.7 60% 50% 41.4% 40% LILLE 30% 21.0% 20% 82.4 10% 64.3 0% FY2023 FY2024 Q1 Q2 Q3 Q4 Q1 Net sales 473.6 709.2 467.8 558.2 391.7 Operating income 117.5 232.6 114.7 152.7 82.4 Net income attributable 88.0 179.2 85.5 118.6 64.3 to owners of parent Gross profit margin 42.3% 46.3% 43.6% 45.1% 41.4% Operating margin 24.8% 32.8% 24.5% 27.4% 21.0% Investor Relations / August 10, 2023 TEL 5#6Composition of Net Sales by Region (FY2024 Q1) Europe Japan 7.5% 7.2% North America 7.7% Southeast Asia, Others 2.4% China 39.3% Investor Relations / August 10, 2023 South Korea FY2024 Q1 19.6% 391.7 B Yen Taiwan 16.3% *FPD sales are included from FY2024 TEL 6#7SPE New Equipment Sales by Application (Quarterly) (Billion yen) 600 500 560.9 15% 428.1 431.2 400 375.4 24% 11% 345.0 350.4 356.7 25% 343.7 15% 16% 19% 31% 15% 287.1 300 29% 17% 20% 16% 16% 34% 18% 19% 200 14% 61% 74% 58% 64% 69% 100 70% 53% 50% 47% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2022 FY2023 FY2024 *Percentages on the graph show the composition ratio of new equipment sales. Field Solutions sales are not included. Investor Relations / August 10, 2023 DRAM Non-volatile memory Logic foundry + Logic & others TEL 7#8Field Solutions Sales (Quarterly) (Billion yen) 150 120 90 90 60 60 30 30 95.2 124.0 120.5 116.1 109.5 131.7 117.5 115.2 100.2 0 Q1 Q2 03 Q3 Q4 Q1 Q2 FY2022 FY2023 Investor Relations / August 10, 2023 33 Q3 Q4 Q1 FY2024 TEL 8#9Balance Sheet (Quarterly) Assets (Billion Yen) Liabilities & Net Assets (Billion Yen) 2,311.5 2,311.5 2,138.0 2,179.0 2,179.0 2,138.0 2,092.7 2,092.7 473.1 Cash & cash 1,846.9 401.0 484.6 387.4 equivalents* 1,846.9 712.0 639.9 Liabilities 645.8 658.3 314.6 Notes and accounts 464.8 368.8 454.4 receivable trade, and contract assets 532.0 507.7 426.1 652.2 716.5 Inventories 632.0 552.9 557.2 150.7 65.0 Other current assets 62.0 94.4 120.5 259.0 293.6 Tangible assets 238.3 246.1 246.1 28.5 29.1 Intangible assets 24.6 26.3 27.4 223.9 225.6 224.5 282.9 304.7 Investment & other assets Q1 Q2 Q3 Q4 Q1 FY2023 FY2024 *Cash and cash equivalents: Cash and deposits + Short-term investments, etc. (Securities in B/S). Investor Relations / August 10, 2023 1,599.5 1,492.1 1,434.3 1,539.0 Net assets 1,314.8 10 Q1 Q2 Q3 Q4 FY2023 Q1 FY2024 TEL 9#10Cash Flow (Quarterly) (Billion Yen) 200 150 100 50 125.7 88.8 0 -50 -100 -150 -200 -36.8 -134.4 Share Repurchase -29.7 -164.1 FY2022 FY2023 FY2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Cash flow from operating activities 111.2 94.6 114.6 -37.1 69.9 193.4 53.2 109.6 125.7 Cash flow from investing activities*1 -15.7 -15.5 -13.5 -20.7 -16.6 -23.1 -13.8 -23.1 -36.8 Cash flow from financing activities Free cash flow *2 -65.9 -0.2 -100.7 -0.2 -119.1 -2.1 -134.6 -0.5 -164.1 95.5 79.0 101.0 -57.9 53.3 170.2 39.3 86.5 88.8 Cash on hand*3 341.7 420.4 423.9 371.2 314.6 484.6 387.4 473.1 401.0 *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. Investor Relations / August 10, 2023 TEL 10#11Status of Share Repurchase As of July 31, 2023 - Total number of shares acquired Total cost of acquisition Reference - Type of shares to be acquired 3,069,200 shares 60,998,033,503 yen - Total number of shares to be acquired - Total cost of acquisition - Period of acquisition Investor Relations / August 10, 2023 Shares of common stock Up to 10 million shares (Equivalent to 2.1% of outstanding shares excluding treasury stock) Up to 120 billion yen From June 1, 2023 to December 31, 2023 TEL 11#12TEL Business Environment and Financial Estimates August 10, 2023 Toshiki Kawai Representative Director, President & CEO WOKING ww 600 years#13Business Environment (WFE Market Outlook as of August 2023) CY2023: Full year forecast unchanged at around $70-75B - Signs of delayed investment in leading-edge logic/foundry, but investment by Chinese customers accelerating in mature nodes CY2024/CY2025: Market heading for 2-year cumulative scale of $200B Number of Servers Network (M units) ΑΙ 20 ■Database & analytics 18.3 18 Media, graphics & gaming 17.4 Web service others 16.2 16 15.1 14.0 14 13.5 13.2 13.5 11.9 12 10 - Servers show strong mid- to long-term growth 8 (CAGR 2023-2027: +8%) 6 - Drivers of recovery for PCs and smartphones demands: Easing inflation 4 2 0 Replacement of products purchased during COVID-19 Corporate IT investment • Demand for PCs expected to increase, driven by the end of OS support New functions for new applications Investor Relations / August 10, 2023 2019 2020 2021 2022 2023 2024 2025 2026 2027 Source: Omdia TEL 13#14Q1 FY2024 Business Progress Net sales and profit both tracking to plan - - Net sales 391.7B yen, Operating income 82.4B yen, Net income 64.3B yen ACL Mask ON Memory Channel Hole 10um Etch Time 32.8 min ON E/R Max CD Btm CD 353 nm/min 114 nm 76 nm AMax-Btm 38 nm Hole Bottom cut by FIB Source: The Japan Society of Applied Physics Steady progress on key themes of Medium-term Management Plan Announced new etching technology for 400-layer level 3D NAND Channel Hole application • Achieved significant increase in dielectric etching rate at cryogenic temperature Reduces global warming potential by 84% compared to previous method - Adoption of wafer bonding technology has accelerated • Significant increase in inquiries for DRAM HBM* Development and evaluation also progressing in 3D NAND and leading-edge logic *HBM: High Bandwidth Memory Investor Relations / August 10, 2023 Cryogenic Process Straighter, deeper and faster High Aspect Ratio Etching Plasma Control Deep learning optimization Beyond 10 μm 2.5x Faster Environmental Performance Low environmental load -43% Less Power -84% Less Carbon Footprint TEL 60 Source: TEL TEL 14#15FY2024 Financial Estimates Investor Relations / August 10, 2023 TEL 15#16FY2024 Financial Estimates FY2024 (Estimate) (Billion yen) FY2023 (Actual) H1 H2 Full Year Full Year YoY Net sales Gross profit 2,209.0 984.4 790.0 910.0 1,700.0 -23.0% 333.0 408.0 741.0 -24.7% Gross profit margin SG&A expenses R&D 44.6% 42.2% 44.8% 43.6% -1.0pts 366.6 172.0 176.0 348.0 -5.1% 191.1 95.0 105.0 200.0 +4.7% Other than R&D 175.4 77.0 71.0 148.0 -15.7% Operating income 617.7 161.0 232.0 393.0 -36.4% Operating margin 28.0% 20.4% 25.5% 23.1% -4.9pts Income before income 624.8 162.0 233.0 395.0 -36.8% taxes Net income attributable 471.5 120.0 180.0 300.0 -36.4% to owners of parent Net income per share 1,007.82 256.21 640.53 -367.29 (Yen) The Company implemented a 3-for-1 common stock split on April 1, 2023. Net incomes per share are calculated on the assumption that stock split was implemented at the beginning of FY2023. No changes in estimates. Forecasting a record high 200B yen in R&D expenses despite a 5% YoY decrease in SG&A expenses overall Investor Relations / August 10, 2023 TEL 16#17FY2024 SPE New Equipment Sales Forecast Sales by Application (Billion Yen) (Billion Yen) 400 1,000 917.7 15% 775.0 DRAM 690.0 750 13% 23% 580.0 16% 22% Non-volatile 500 22% 9% 287.1 292.9 300 16% 27% 14% 5% 200 memory 9% 62% 71% 250 69% Logic foundry + Logic & Others 100 70% 68% 69% 0 FY2023 H1 FY2023 H2 FY2024 H1 (Actual) (Actual) (Estimates) FY2024 H2 (Estimates) Percentages on the graph show the composition ratio of new equipment sales. Field solutions sales are not included. No major changes in estimates Investor Relations / August 10, 2023 0 FY2024 Q1 (Actual) FY2024 Q2 (Estimates) TEL 17#18FY2024 R&D Expenses and Capex Plan New Development Building Deposition system, etch system, corporate R&D Tohoku Production and Logistics Center Deposition system (Billion Yen) R&D expenses 200 લેર માં પ પામ 191.1 200.0 品 120.2 136.6 158.2 100 Nirasaki-city, Yamanashi Prefecture Established in July 2023 Oshu-city, Iwate Prefecture Completion scheduled for autumn 2025 New Development Building Coater/Developer, Surface preparation systems 0 FY2020 FY2021 FY2022 FY2023 FY2024 (Estimate) New Development Building Etch systems ■Capex (Billion Yen) 150 ■Depreciation 124.0 100 74.4 54.6 53.8 57.2 57.0 42.9 50 33.8 36.7 29.1 Koshi-city, Kumamoto Prefecture Completion scheduled for summer 2025 Kurokawa-gun, Miyagi Prefecture Completion scheduled for spring 2025 0 FY2020 FY2021 FY2022 FY2023 FY2024 (Estimate) Continue aggressive R&D and capital investment for sustainable growth Investor Relations / August 10, 2023 TEL 18#19FY2024 Dividend Forecast (Yen) 600 Dividend per Share 400 252 (758) 260 (781) 200 196 (588) 0 FY2019 FY2020 FY2021 570 (1,711) 467 (1,403) FY2022 FY2023 Commemorative dividend TEL shareholder return policy 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 We will flexibly consider share buybacks 320 (960) Year-end 192 Interim 128 *Due to the stock split on April 1, 2023, the amount has been changed from 150 yen to 50 yen. FY2024 (Estimate) Dividends per share from FY2019 to FY2023 are calculated on the assumption that the stock split was conducted at the beginning of FY2019. FY2023 includes the 60th anniversary commemorative dividends. Amounts before the stock split are shown in parentheses. Implemented a 3-for-1 common stock split on April 1, 2023. Full-year dividends are expected to be 320 yen per share. Investor Relations / August 10, 2023 TEL 19#20Total Return Amount (Billion yen) 300 Commemorative dividend 242.1 250 219.3 200 149.9 150 124.4 121.9 100 50 92.2 0 FY2019 FY2020 FY2021 FY2022 267.9* 270.3 60.9 (Acquired) 120.0 Cost of Acquisition ■Paid Dividends 150.3 FY2023 FY2024 (Estimate) *FY2023 dividend payment of 267.9B yen includes commemorative dividend (31.3B yen). 3,069,200 shares worth of about 60.9B yen was acquired as of July 31 Investor Relations / August 10, 2023 TEL 20 20#21TEL | 60.TOME years