To Individual Investors

Tokyo Electron Device’s Vision

Medium-Term Management Plan

TED is currently carrying out the VISION2025 Medium-Term Management Plan, which ends in fiscal year 2025. Under this plan, our mission is to provide products and services that drive digital transformation (DX) , thereby contributing to the sustainable development of a highly efficiency smart society in anticipation of the advent of Society 5.0, a highly efficiency smart society amid slow economic growth.

Our Vision

Until now, TED has positioned itself as a technology trading company with manufacturing functions, but to achieve our mission, we set as our vision becoming a manufacturer with technology trading company functions.

Growth Strategy

Our overall basic policy is to grow profits by providing leading-edge technological products and services to growth markets and to sustain growth through business diversification. In addition to maintaining business models that can achieve profit growth, we are diversifying business so that we can achieve sustainable growth no matter what changes occur in the business environment.

In the CN Business, we are focusing on the IT segment, which is a growth market, and we will capture IT demand with cutting-edge products. We will also focus on the provision of recurring and subscription revenue services that can continuously accumulate profit opportunities. Within these services, we will gain the trust of customers by providing highly-reliable maintenance and monitoring services 24 hours a day, 365 days a year, thereby achieving continuous product adoption and stable improvement in profitability

Regarding the EC Business, in the semiconductor segment, which is a growth market, we will capture semiconductor demand by expanding our trade rights with a focus on automotive and industrial equipment customers. In the public cloud market, which is undergoing remarkable growth, we offer Microsoft Azure and will focus on new usage -based revenue-generating businesses. Will also raise profitability by promoting sales of products with design and manufacturing services (DMS), through collaboration with the PB Business.

In the PB Business, we will expand business with our customer base with a focus on manufacturing industries. Regarding product development, we have positioned the manufacturing automation field as a priority segment and will focus our efforts on developing manufacturing systems. For the contracting business, we will shift from DMS, our existing service whereby we perform a portion of product development under contract from customers, to original design manufacturer (ODM), which involves the sale of final products developed by us under customer brands, to raise profitability.

VISION2025 Financial Targets and Latest Forecast

In the fiscal year ended March 31, 2023, we achieved growth in the EC Business in excess of our expectations due to robust semiconductor demand, the low value of the yen in the dollar-yen exchange rate, and other factors. As a result, we achieved the VISION2025 financial targets two years early. Taking into consideration assumptions regarding the future business environment, the latest forecast for the fiscal year ending March 31, 2025, the final year of VISION2025, is for net sales of at least 250 billion yen, and ordinary income ratio of at least 5.5%, and ROE of no less than 20%.

Medium-Term Management Plan: Results and Plan

The VISION2025 Medium-Term Management Plan is a management plan that covers a total of 10 years together with the VISION2020 plan. Results and the plan are presented here. The results under VISION2020 and the latest forecast for VISION2025 are shown in a graph.