INVESTORS GUIDE 2019 Osaka Office to Our Shareholders and Investors Fukuoka Sales Office Shinjuku Office Shinjuku Support Center Tachikawa Sales Office
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TOKYO ELECTRON DEVICE LIMITED Securities code: 2760 Business Locations (As of July 1, 2019) Business Location Domestic Subsidiary Omiya Sales Office Matsumoto Sales Office Sendai Sales Office Tsukuba Sales Office Iwaki Sales Office Nagoya Sales Office Mito Sales Office Kyoto Sales Office INVESTORS GUIDE 2019 Osaka Office To Our Shareholders and Investors Fukuoka Sales Office Shinjuku Office Shinjuku Support Center Tachikawa Sales Office Engineering Center Headquarters (Yokohama) FAST CORPORATION (Yamato-city, Kanagawa prefecture) TOKYO ELECTRON DEVICE Mishima Sales Office NAGASAKI LTD. Hamamatsu Sales Office (Isahaya-city, Nagasaki prefecture) Business/Marketing location Overseas Design and development location Dalian Yokohama Ottawa Seoul Silicon Valley Shanghai Taipei Shenzhen Bangkok Wuxi Hong Kong Singapore Philippines Note on forward-looking statements This Investors Guide was prepared on July 1, 2019. Forward looking statements, including business strategies and business forecasts, were made by the Company’s management, based on information available at that time, and may be revised due to changes in the business environment. Therefore, please be advised that the Company cannot guarantee the accuracy or the reliability of the statements. For the latest information, please refer to our information releases or our website. Note also that product and service names remain the trademarks of their respective owners. Corporate Communications Dept. https://www.teldevice.co.jp World Headquarters Yokohama East Square, 1-4 Kinko-cho, Kanagawa-ku,Yokohama City, Kanagawa 221-0056, JAPAN Tel.+81-45-443-4005 E-Mail: [email protected] Our History—From Founding to Today Tokyo Electron Device—A Technology Trading Pioneering a New Era with Semiconductors Company with Manufacturing160000 Capabilities, and IT Infrastructure Electronic Components Business Computer Networks Business FY2019 Net sales 120000 Electronic Components Business The Electronic Components Business ¥141,000 comprises a trading company business that million provides semiconductor products, circuit boards, software and other products, as well as the Private Brand Business, which FY2014 develops private brand products and carries Net sales out contracted design and mass production FY2009 services on behalf of customers. We leverage Net sales , our proposal, technical and support ¥101801 80000 million capabilities to resolve the issues our ¥94,701 customers face. million Computer Networks Business The Computer Networks Business handles storage, network and security products and uses them to propose cloud age business solutions. Finding optimal combinations of 40000 equipment based on technology verification, we provide comprehensive, optimized solutions for customers, from installation to maintenance support. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1965 1998 2003 2004 2005 2006 2010 2014 2017 2018 2019 Tokyo Electron Ltd. begins selling Tokyo Electron’s entire Listed on the Second Private brand products and Overseas business opera- Sales of Computer Networks solutions Listed on the First Section of Sale of shares electronic components made by Electronic Components Section of the Tokyo design outsourcing services tions begin with subsidiary start by taking over Tokyo Electron’s the Tokyo Stock Exchange by Tokyo Electron FAST CORPORATION such companies as Fairchild Business transferred to TED Stock Exchange branded as “inrevium” established in Hong Kong Computer Network Business becomes consolidated subsidiary Tokyo Electron Limited TED TED TED AVAL NAGASAKI CORPORATION (now TOKYO ELECTRON DEVICE Electronic Components Business Electronic Components Business Electronic Components Business Electronic Components Business NAGASAKI LTD.) becomes Computer Network Business Private Brand Business Private Brand Business consolidated subsidiary Semiconductor Production Equipment Computer Networks Business Business FPD Production Equipment Business 1 TOKYO ELECTRON DEVICE INVESTORS GUIDE 2019 TOKYO ELECTRON DEVICE INVESTORS GUIDE 2019 2 Medium-Term Management Plan VISION 2020 To Our Shareholders and Investors VISION Net sales ¥200 billion Medium-Term Management Plan Ordinary income ratio 3.5 % or higher Advancing initiatives ROE to increase our enterprise 15 % value and realize Timeframe for achievement 2020 By March 31, 2021 future growth Growth The end of the VISION 2020 medium-term strategy management plan in fiscal 2021, the year for fiscal 2016 ending March 31, 2021, is drawing closer. to fiscal 2021 Private Brand Business During fiscal 2020, we are accelerating efforts to achieve the plan’s targets while also advancing initiatives that look ahead, New Business TED REAL IoT beyond the plan’s conclusion. Establish high value-added businesses utilizing In line with our management priorities of existing business foundation increasing our technological capabilities, focusing on high value-added business and stable earnings growth, we are working together with shareholders and all Electronic stakeholders to create new value and Core Business Components Business Respond quickly to further enhance enterprise value. environmental changes, Computer Networks Thank you for your continued support. realize stable earnings growth Business Atsushi Tokushige President & Representative Director Based on the fundamental principles of Growth, Stability, and Value Creation, Career Summary VISION 2020 is Tokyo Electron Device’s growth strategy, with the targets for fiscal 2021 of April 1986 Joined Tokyo Electron Limited ¥200 billion in net sales, an ordinary income ratio of 3.5% or higher, and ROE of 15%. April 2005 Vice President of TED June 2007 Corporate Director of the Company Managing Director, Tokyo Electron Device’s business environment has been ROE (%) 15.0% June 2011 TOKYO ELECTRON DEVICE HONG KONG LTD. Net sales (Billions of yen ) (now TOKYO ELECTRON DEVICE ASIA PACIFIC LTD.) changing at a dizzying pace, driven by such factors as the Ordinary income ratio (%) 9.5 8.4 September CEO, inrevium AMERICA, INC. consolidation of manufacturers and advance of cloud 6.8 2013 (now TOKYO ELECTRON DEVICE AMERICA, INC.) 4.2 4.3 ¥200 billion technologies. In the Electronic Components Business and 3.2 President & Representative Director January 2015 Computer Networks Business, our core businesses, we 159.8 of the Company (present) 141.0 150.0 are aiming to respond quickly to environmental changes to 131.8 111.6 117.8 3.5% realize stable, ongoing earnings growth. In the Private 2.2 2.3 Brand Business, part of the Electronic Components 1.7 1.4 Business, we are building on our core businesses, lever- 1.2 1.0 aging our wealth of proprietary technologies to establish new, high value-added business models. FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 (forecast) (forecast) 3 TOKYO ELECTRON DEVICE INVESTORS GUIDE 2019 TOKYO ELECTRON DEVICE INVESTORS GUIDE 2019 4 President’s Message Vision Initiatives for A Unique Business Model Comprehensive Future Growth System Development Electronic The origins of Tokyo Electron Device Limited (TED) go back to the In order to provide customers with optimal products, in 1985 we Components Contracting launch of electronic component sales at Tokyo Electron established a Design & Development Center, launching semicon- TED is working to evolve its business portfolio Business Laboratories, Inc. (now Tokyo Electron Limited, or TEL) in 1965. ductor and electronic device development. Over time, our product and shift from its current form, a technology By securing sales agency agreements with Fairchild lineup evolved in step with customer needs, shifting closer to Semiconductor in the United States and other leading manufac- finished products, such as the design of substrates and system trading company with design and manufacturing TED Nagasaki boasts the capability to accept comprehensive turers, the business became Japan’s first distributor to maintain products on which semiconductor and electronic devices are functions, to become a manufacturer with contracts spanning from the development to production of sys- tem-level products. Making maximum use of this, in addition to and actively manage inventory, growing in step with the domestic mounted. Today, we also provide design and contracted produc- technology trading company functions. semiconductor industry. tion services, as well. our existing business selling individual semiconductor compo- In 1990, TED began electronic component sales, and in 1998, In 2006, TED took over TEL’s Computer Network Business, To this end, TED is advancing four initiatives nents, we will promote a business based on comprehensive con- all of TEL’s Electronic Component Business was transferred to beginning computer system-related product sales and mainte- aimed at achieving the targets of tracting, from development to production, of such products as modules, circuit boards and embedded systems. By leveraging TED. Amid ongoing economic globalization, TED built its brand by nance services. VISION 2020 and future growth. supplying cutting-edge semiconductors and electronic devices Having created and honed the business model as a technology the TED Group’s unique technologies to secure contracts for the made by overseas manufacturers along with sophisticated techni- trading company with manufacturer functions, TED will continue development and production of systems that other companies cal support from specialized engineers in order to help enhance its evolution going forward. are less equipped to handle, we will further