Cyan R 0 G 169 B 224 Black R 20 G 20 B 20 Gray R 45 G 45 Medium-term Management Plan B 45 White Progress and TEL Initiatives R 255 G 255 B 255 Magenta May 31, 2017 R 218 G 24 B 132 Toshiki Kawai Purple R 128 Representative Director, President & CEO G 49 B 167 Turquoise R 0 G 178 B 169 Green R 120 G 190 B 32 Yellow R 238 G 220 B 0 Orange R 255 G 106 B 19 Cyan R 0 G 169 B 224 Black FY2017 Financial Highlights R 20 G 20 B 20 Operating Income and Net Sales and Gross Profit Margin Net Income and ROE Gray Operating Margin R 45 (Billion Yen) (Billion Yen) (Billion Yen) G 45 900 200 19.5% 20.0% 150 B 45 Net sales Operating income 799.7 17.6% Net income 19.1% White Gross profit margin Operating margin ROE R 255 155.6 G 255 663.9 14.4% B 255 150 15.0% 100 612.1 613.1 13.0% Magenta 600 39.6% 40.2% 40.3% 11.8% 116.7 R 218 497.2 G 24 B 132 33.0% 31.9% 100 10.0% 50 115.2 88.1 Purple 71.8 77.8 R 128 G 49 300 1.0% B 167 5.3% 6.0 50 5.0% 0 Turquoise 2.5% 32.2 -19.4 R 0 G 178 12.5 B 169 -3.3% 0 0 Green 0.0% -50 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 R 120 G 190 B 32 . Net sales increased by 20% YoY, highest ever SPE* sales Yellow R 238 G 220 . Set new record highs for GPM, OPM and net income B 0 Orange . ROE of 19.1% (+6.1pts YoY). Further increased capital efficiency R 255 G 106 CORP IR / May 31, 2017 * SPE: Semiconductor Production Equipment 2 B 19 Cyan R 0 G 169 B 224 Black FY2018 Financial Estimates R 20 (Billion Yen) G 20 B 20 FY2018 (Estimates) Gray FY2017 R 45 st nd Full year G 45 (Actual) 1 half 2 half Full year B 45 YoY change White Net sales R 255 799.7 480.0 500.0 980.0 +22.5% G 255 B 255 SPE 749.8 451.0 459.0 910.0 +21.4% Magenta * R 218 FPD 49.3 29.0 41.0 70.0 +41.7% G 24 B 132 Gross profit 322.2 202.0 210.0 412.0 +89.7 Purple Gross profit margin R 128 40.3% 42.1% 42.0% 42.0% +1.7pts G 49 B 167 Operating income 155.6 104.0 112.0 216.0 +60.3 Turquoise Operating margin R 0 19.5% 21.7% 22.4% 22.0% +2.5pts G 178 B 169 Net income attributable to owners of parent 115.2 79.0 84.0 163.0 +47.7 Green R 120 G 190 Net income per share (Yen) B 32 702.26 481.48 511.96 993.44 +291.18 Yellow R 238 Expect sales growth to exceed market growth, G 220 B 0 Orange generating record high profits for second consecutive year R 255 G 106 CORP IR / May 31, 2017 * FPD: Flat Panel Display Production Equipment 3 B 19 Cyan R 0 G 169 B 224 Black Current Progress with Medium-term Financial Targets R 20 G 20 B 20 Gray R 45 Medium-term financial targets G 45 FY2015 FY2016 FY2017 FY2018 B 45 WFE* (Actual) (Actual) (Actual) (Estimate) White R 255 G 255 Market size $31.9B $31.4B $35B $38B $30B $37B B 255 Magenta R 218 Net sales ¥613.1B ¥663.9B ¥799.7B ¥980.0B ¥720.0B ¥900.0B G 24 B 132 Operating Purple 14.4% 17.6% 19.5% 22.0% 20% 25% R 128 G 49 margin B 167 Turquoise R 0 ROE 11.8% 13.0% 19.1% - 15% 20% G 178 B 169 Green R 120 G 190 B 32 Steady improvement in results. Yellow R 238 Continue to focus on improving profit margins G 220 B 0 * WFE (Wafer Fab Equipment): The semiconductor production process can be divided into two sequential sub-processes: front-end (wafer fabrication) and back-end (assembly and test) Orange production. WFE is used in the front-end production process. Equipment for wafer-level packaging is not included in the WFE market size here. R 255 G 106 CORP IR / May 31, 2017 4 B 19 Cyan R 0 G 169 B 224 Black Outperform the Market R 20 G 20 B 20 Gray . Continue to achieve earnings increases greater than market R 45 G 45 B 45 growth White R 255 G 255 FY2017 results (compared to FY2016) B 255 * Magenta ⇒ TEL sales growth +20.4% (WFE market growth +11.5%) R 218 G 24 Operating income growth +33.3% B 132 Purple R 128 G 49 B 167 FY2018 plan (compared to FY2017) Turquoise * R 0 ⇒ TEL sales growth +22.5% (WFE market growth +8.6%) G 178 B 169 Operating income growth +38.7% Green * WFE market growth rates are for the calendar year R 120 G 190 B 32 Yellow . Expand market share for etching system, thermal processing R 238 G 220 B 0 system, and cleaning system Orange R 255 G 106 CORP IR / May 31, 2017 5 B 19 Cyan R 0 G 169 B 224 Black Era of IoT R 20 G 20 B 20 Gray R 45 G 45 B 45 Social White media R 255 G 255 Autonomous B 255 Magenta driving IoT AI robots R 218 G 24 B 132 Purple R 128 G 49 B 167 Turquoise Fintech R 0 AI G 178 DNA B 169 AR/VR analysis Green R 120 G 190 B 32 Yellow R 238 G 220 The amount of data is dramatically increasing with B 0 Orange the growing number of connected devices R 255 G 106 CORP IR / May 31, 2017 6 B 19 Cyan R 0 G 169 B 224 Black Infrastructure Evolution Supporting the IoT Era R 20 G 20 B 20 Gray R 45 G 45 B 45 High speed, high reliability, low latency, the number of connected devices White R 255 G 255 B 255 Magenta R 218 5G Network G 24 B 132 Purple R 128 Speed: 100x G 49 Compared to 4G: B 167 Turquoise Data latency: 1/50th R 0 G 178 B 169 # of connectable devices: 100x Green R 120 G 190 B 32 Yellow R 238 5G, the next generation communications standard, will establish G 220 B 0 the infrastructure for an IoT society Orange R 255 G 106 CORP IR / May 31, 2017 7 B 19 Cyan R 0 G 169 B 224 Black The Evolution of Society R 20 G 20 B 20 Gray R 45 G 45 B 45 Social Manufacturing White media Finance R 255 G 255 B 255 Magenta Traffic AI R 218 G 24 Medical B 132 Purple R 128 G 49 B 167 Real time systems will be built on Turquoise R 0 G 178 B 169 society’s cloud systems Green R 120 G 190 B 32 Yellow R 238 Semiconductors will be increasingly integrated G 220 B 0 Orange throughout society R 255 G 106 CORP IR / May 31, 2017 8 B 19 Cyan R 0 G 169 B 224 Black Expansion of ＷFE Market R 20 G 20 Equipment for wafer-level packaging is not included in the WFE market size here B 20 Gray ($ Billion) R 45 G 45 50 B 45 $40B~ White 40 R 255 G 255 $30B B 255 Magenta 30 R 218 G 24 $20B B 132 20 Purple R 128 $10B G 49 10 B 167 Turquoise R 0 0 G 178 B 169 1990 1995 2000 2005 2010 2015 Green Source: 2001-2013 SEMI R 120 2014-2018 VLSI “Chip Market Research Services Equipment Database, 1Q17 Update” Apr. 2017. Graph created by TEL using above data G 190 B 32 Yellow R 238 G 220 B 0 Semiconductor industry is heading for its next growth phase Orange R 255 G 106 CORP IR / May 31, 2017 9 B 19 Cyan R 0 G 169 B 224 Black Growing Use of Displays as Interface Devices R 20 G 20 B 20 Gray R 45 G 45 B 45 スマートフォンはインターフェイス White R 255 デバイスへ G 255 B 255 Magenta R 218 G 24 B 132 Smartphone Head mounted display Heads-up display Digital signage touchscreen Purple R 128 G 49 B 167 Functionalities sought in displays: Turquoise R 0 ultra-high resolution・large scaled・ G 178 B 169 low power consumption・flexibility Green R 120 G 190 B 32 Yellow R 238 G 220 B 0 Further growth expected in the display market Orange R 255 G 106 CORP IR / May 31, 2017 10 B 19 Cyan R 0 G 169 B 224 Black New Medium-term Financial Targets (toward FY2020) R 20 G 20 B 20 Equipment for wafer-level packaging is included in the WFE market size here Gray R 45 G 45 B 45 White WFE R 255 G 255 $42B $45B B 255 Market size Magenta R 218 G 24 B 132 Net sales ¥1,050B ¥1,200B Purple R 128 G 49 B 167 Operating margin 24% 26% Turquoise R 0 G 178 B 169 ROE (Return on Equity) 20-25% Green R 120 G 190 B 32 Yellow R 238 G 220 Targets adjusted due to changes in market conditions B 0 Orange R 255 G 106 CORP IR / May 31, 2017 11 B 19 Cyan R 0 G 169 B 224 Black New Organization: Development & Production Group R 20 G 20 As of June 1, 2017 B 20 Gray R 45 Development & G 45 .