Financial Results for the Year Ended March 31, 2018

May 10, 2018

Financial Results for the Year Ended March 31, 2018

? Forward-looking statements for earnings and other performance data contained herein are based on information currently available to the Company, and all potential risks and uncertainties are taken into account. The Company asks that investors understand that changes in conditions may cause actual performance to significantly differ from these projections.

? Amounts in this statement are rounded down to the nearest hundred million.

Business Update and Future Strategic Direction

May 10, 2018

President and Representative Director Kazuo Ushida

Financial results for the year ended March 31, 2018 and Forecast for the year ending March 31, 2019

? FY2018/3 Profitability of Imaging Products and Precision Equipment Business chiefly improved as the result of restructuring by fixed cost reduction and change of business strategy. Operating Profit and Profit attributable to owners of the parent increased over ?50 billion and ?30 billion, respectively, compared with the previous fiscal year.

? FY2019/3 FPD Business is expected to be a major driver to push up the Operating Profit by approximately ?14 billion. Profit attributable to owners of the parent is expected to reach ?50 billion partially due to the reduction of tax burden.

Operating Profit Profit attributable to owners of the parent

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Business Environment and Direction of Restructuring

Business Environment

? Imaging Products: Continuous market shrinkage ? Precision Equipment: Uncertain outlook of capital

investment of FPD equipment beyond 2019 ? Healthcare: Large expectation for market growth yet

additional time is required to bear fruit ? Industrial Metrology and others: Identification of

market with potential is imperative

Restructuring Direction

On track

? Business Strategy: Focus strategy is executed and profitability improved as planned

? Cost Structure: Voluntary retirement, close-down of China plant of Imaging Products Business and other restructuring actions reduced more than ?30 billion of fixed cost

? ROE/ROIC management: Respective goal setting in progress

In Process

? Portfolio management: Started with business transfer, reallocation of resources just kicked off

? Governance: Establishing more transparent and disciplined structure

Management DNA enhancement shall continue even after FY2020/3

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2.5-year restructuring plan entering the final year

4 PHASES OF RESTRUCTURING

Phase 1

Launch of restructuring

Phase 2

Additional initiatives/ Full-scale

enhancement of management DNA

Phase 3

Realization of enhancement in management DNA

Phase 4

Clarify postrestructuring Strategic blueprint

Fundamental re-assessment of coststructure/ change to profit-oriented business structure/ Penetrate the operation of KPI across the company

Enhancement of management DNA

2016.11

2017.5

2018

Define "Sustainable value creation

through growth"

2019

Address remaining challenges thoroughly with the post-restructuring blueprint in mind

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2018/3 Financial Results 2019/3 Forecast

May 10, 2018

Senior Executive Vice President, CFO and Representative Director Masashi Oka

Agenda 1. Financial results for the year ended March 31, 2018 2. Forecast for the year ending March 31, 2019

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Overview of financial results of the year ended March 31, 2018

Year on Year

? Operating Profit: ?56.2 billion (?55.5 billion increase Y on Y) (?64.9 billion, up ?10.8 billion YoY, if excluding the restructuring relevant expenses) - Imaging Products Business: Fixed cost reduction and focus on high-value-added products increased profit despite market shrinkage - Precision Equipment Business: Semiconductor Lithography Business gained profits as planned. Profit improvement of Semiconductor Lithography exceeded the profit decline of FPD Lithography Business

Comparison vs Feb. 8 forecast

? Operating Profit: ?56.2 billion (?3.2 billion above estimates) - Imaging Products Business?3.8 billion decrease due to weaker market demand than estimated in Q4 - Precision Equipment Business?4.3 billion increase due to brisk service business and improved profitability

FCF?30.2 billion increase due to increase of advance payment

Annual dividend

? Increase to ?36 per share from previously forecasted ?31 in accordance with the dividend payout policy to achieve a ratio of 40% or more. (Previous year :?16)

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