CSR Goals and Results

1 ERP: Enterprise Resource Planning 2 CRM: Customer Relationship Management 3 PLM: Product Lifecycle Management 4 Shift Left: Refer to p.17 and p.31
5 Senior specialists were included in the 2.0% figure in fiscal year 2019 6 An indication of the risk of lifestyle diseases in years, based on the results of health checkups 7 SR: Shareholder Relations
8 Per-unit basis: Calculated using complex weighting of the number of developed evaluation machines, units produced, floor area, and labor-hours for each district
9 Per-unit basis: Calculated based on floor area and labor-hours, etc. for each district 10 BCP: Business Continuity Plan 11 For each question, average score is calculated for all customers who responded
12 The ratio of females majoring in science or engineering in the case of engineers

FY2021

FY202 2

Material Issues

Priority Themes

Annual Goals


Product
competitivenessTackling
technologicalinnovationEnvironmental
contribution ofproducts

Customer
responsiveness

Solutions thatcreate value forcustomers
Improvement ofcustomer
satisfaction





Continuous
improvement ofbusiness operations

Ensure that 20% or more (three-year moving average) of all
equipment models are new products for next-generation
technologies
Maintain the previous year’s global patent application rate (±10%)
Reduce per-wafer emissions of CO2 by 20% by fiscal year 2025
(compared with fiscal year 2014)
Increase Tokyo Electron's value to customers

ResultsPriority Themes

Product
competitivenessTackling technologicalinnovation

Annual Goals

Maintained the previous year's rate
(Achieved 79.8% in fiscal year 2020 and 74.3% in fiscal year 2021)

Orders and sales both increased significantly from the previous fiscal year, driven bydemand for smartphones and servers
Increased by 19.6% from previous fiscal year

Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% ofcustomer satisfaction survey responses



96.7% (achieved in 29 out of 30 questions)

Solutions that create
value for customersExpanded CRM to multiple overseas subsidiaries
Expanded PLM to multiple domestic manufacturing sites in Japan
Almost completed preparations for adopting ERPHigher productivity

Improvement ofcustomer
productivity/yield

Diversity andinclusionCareerdevelopment
People andworkplacesWork-life balance

Check the impact of important non-conformance items on otherequipment and thoroughly implement recurrence prevention
measures
Promote Shift Left4 (front-loading) activities for quality(1) Increase engineer time for high-value work in upstream
processes, and(2) implement medium- to long-term action plans to continue toenhance quality assurance activities
Double the percentage of female managers and experts (with sameroles and responsibilities as managers) by fiscal year 2022 from 2.0%5
in fiscal year 2019


Improvement ofcustomer satisfactionHigherproductivity

Finished revising new QA-BOX operation rules
Started regular meetings with the heads of all BU quality assurance divisions
Implemented progress management for QA-BOX submissions

Quality management

Improvement ofcustomer productivity/yield(1) Completed each company's individual/common activity plans
Each company is currently carrying out individual activities as planned
Common activities:
Formulated activity policy based on best practices
Agreed on activity policy with the heads of each quality assurance division(2) Formulated medium- to long-term plans
Formulated plans, started activities

Diversity and inclusion(1) Increased number of leader training participants year-on-year change: 104%
(Japan)(2) Increased number of external web based training courses taken year-on-yearchange: 158% (Japan)(3) Increased number of participants of career training for senior employees
year-on-year change: 149% (Japan)

Reach at least 70% take-up rate of annual paid leave

62.5% (Japan)

Reduce gap between health age6 and actual age by 1.5 points by fiscalyear 2021 (as compared with fiscal year 2018)

Reduced gap by 0.21 points (Japan)

Career development

Work-life balanceContinue to improve on issues identified in evaluations of theeffectiveness of the Board of Directors



Risk managementComplianceManagementfoundation

Environmentalmanagement

Achieve 100% recognition among employees concerning internal
hotline
Revise Code of Ethics, conduct basic annual training, and achievepledge rate of 100%
Conduct a compliance awareness survey
Reduce energy consumption by 1% from the fiscal year 2020 level(per-unit basis8) at each plant or office

Achieved 0.27
Revised Board of Directors Regulations and established the Business Execution
Meeting to improve the effectiveness of the Board of Directors
Revised the Affiliated Companies Management Regulations from the perspective ofstrengthening group governance. Confirmed status of operations based on theregulations with each division
Implemented SR7 activities with institutional investors with an eye to Shareholders'Meeting proposals and ESG-related issues
Held discussions at off-site meetings on medium- to long-term strategies(1) Conducted assessments using checklists at overseas and domestic groupcompanies, identified risks and examined countermeasures(2) Established the Risk Management Committee and held meetings (Mar. 2021)








Recognition of internal hotline: 68%
Code of Ethics education and pledge rate: 98.8%
Awareness survey (Trial survey planned for fiscal year 2022)

GovernanceManagementfoundation

Risk managementCompliance

Environmental
contribution ofproductsSupply chain
management


Maintain water consumption (per-unit basis9) at plants and offices at
the fiscal year 2012 level in Japan and at individual base year levels
overseas
Implement supply chain CSR assessments for the following
percentages of suppliersMaterial suppliers: Covering at least 80% of our procurement spend
Logistics suppliers: 100% of customs-related operators
Staffing suppliers: 100% of employment agencies and contracting
companies (internal contractors)
Implement supply chain BCP10 assessments for the following
percentages of suppliers
Material suppliers: Covering at least 80% of our procurement spend

TOKYO ELECTRON SUSTAINABILITY REPORT 202 1

Achieved 10 of 13 goals

Environmentalmanagement






Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey responses11

Target a 10% improvement in operational efficiency as a medium- to long-term goal, achieve
centralized data management through adoption of a new ERP system, and build a business foundation
where employees can focus even more on higher value work
(1) Adopt ERP at headquarters(2) Prepare to adopt ERP at manufacturing sites in Japan and overseas subsidiaries
Constantly pursue
higher management
efficiency

Check the impact of important common issues and thoroughly implement measures to prevent
recurrence of similar faults
Verify the effects of strengthening the quality information environment

Promote Shift Left (front-loading) activities for quality
Identify risks and thoroughly implement countermeasures from the initial development stage (thoroughprevention)

Implement initiatives to make the ratio of females in management positions equal to the ratio offemales in the company over the medium term
Implement initiatives to make the ratio of female recruits equal to or greater than the general ratio offemales12 in each region
Create an organizational system where even those from outside of Japan can take on corporate roles
through the use of technology and shared global human resources systems

Foster a culture of learning and development in the workplace through(1) Leader development programs(2) Provision of personalized global learning opportunities(3) Support for career development throughout working life

Reach at least 70% take-up rate of annual paid leave

Increase the percentage of employees receiving specific health guidance to 60% (figures based on theresults of medical checkups up to the end of fiscal year 2024)
Reduce the number of workplace injuries per 200,000 work hours
Target: TCIR (the total case incident rate) is less than 0.5

Continue to improve on issues identified in evaluations of the effectiveness of the Board of Directors

Promote an integrated risk management system throughout our Group(1) Ongoing rollout of CSA(2) Unified classification and response to risks to the entire Group(3) Launch of internal education program
Roll out in Japan in fiscal year 2022 and overseas in fiscal year 2023

Build a strong
managementfoundation forunderpinning ourbusiness activities

Continuous cultivation of a compliance culture(1) Provide Code of Ethics training and achieve a pledge rate of 100%(2) Implement and improve a compliance survey(3) Achieve 100% recognition of the internal hotline among employees

Reduce per-wafer emissions of CO2 by 30% (by fiscal year 2031, compared with fiscal year 2019)
Reduce the amount of the use of wooden packaging materials by 50% (packaging for semiconductor
production equipment, fiscal year 2024)

Achieved goal at 1 of 11 plants or offices11

Promote an integrated risk management system throughout ourGroup,(1) Adopt Control Self Assessment (CSA), and(2) establish and operate a risk management committee

Health and safetyGovernance

2.5%(Reference) Percentage of female managers: 2.2% (Japan), 5.2% (global)

Foster a culture of learning and development in the workplacethrough(1) Leader development programs,(2) provision of personalized global learning opportunities, and(3) support for career development throughout working life

Reduce the number of workplace injuries per 200,000 work hours.
Target: TCIR (the total case incident rate) is less than 0.5.

Health and safety

Increase Tokyo Electron’s value to customers
Increase sales-in-field solutions business by 5% or more from the fiscal year 2021 level
Be the sole strategic
partnerQualitymanagement

Create strong
next-generation
products

Ensure that 20% or more (three-year moving average) of all equipment models are new products fornext-generation technologies
Maintain the previous year’s global patent application rate (±10%)

Customer
responsivenessContinuous
improvement ofbusiness operations


Relevant SDGs

Reduced by 16% in fiscal year 2021 as compared with fiscal year 2014

Medium-term Goals

23.6%

Increase sales-in-field solutions business by 5% or more from thefiscal year 2020 level

Target a 10% improvement in operational efficiency as a medium- tolong-term goal, achieve centralized data management throughadoption of a new ERP1 system, and build a business foundation
where employees can focus even more on high-value work
(1) Expand implementation of CRM2 and PLM3, and(2) adopt new ERP during fiscal year 2021

Material Issues

Percentage of suppliers at which supply chain CSR assessments were implemented
Material suppliers: Achieved 80% or more of our procurement spend
Logistics suppliers: Achieved 100% of customs-related operators
Staffing suppliers: Achieved 100% of employment agencies and contracting
companies (internal contractors)
Percentage of suppliers at which supply chain BCP assessments were implemented
Material suppliers: Achieved 80% or more of our procurement spendSupply chainmanagement
Reduce total CO2 emissions at plants and offices by 70% (by fiscal year 2031, compared with fiscal year2019)
Adopt 100% renewable energies at plants and offices (by fiscal year 2031)
Reduce energy consumption by 1% from the fiscal year 2021 level (per-unit basis) at each plant or office
Maintain water consumption (per-unit basis) at each plant and office at the fiscal year 2012 level inJapan and at individual base year levels overseas

Implement supply chain CSR assessments for the following percentages of suppliers
Material suppliers: Covering at least 80% of our procurement spend
Logistics suppliers: 100% of customs-related operators
Staffing suppliers: 100% of employment agencies and contracting companies (internal contractors)
Implement supply chain BCP assessments for the following percentages of suppliers
Material suppliers: Covering at least 80% of our procurement spend

TOKYO ELECTRON SUSTAINABILITY REPORT 202 112