TDK CSR REPORT 2018

The TDK Group's CSR

The TDK Group CSR Management

The TDK Group’s Materiality

Linkage between TDK Group CSR and the Corporate Philosophy
The TDK Group’s approach to CSR is based on thepractice of the TDK corporate motto and thoroughimplementation of corporate ethics. Recognizing that
TDK is a social entity supported by stakeholders, suchas customers, suppliers, employees, shareholders,investors, and local communities, we promote CSR
activities through our business activities on the basisof the TDK Code of Conduct and maintain communication with these stakeholders. By carrying out theTDK corporate motto, we increase corporate value,and subsequently contribute to continuous businessdevelopment and the creation of a sustainable society.

Continuous businessdevelopment

Creation of a sustainablesociety*1 The details of the Materiality Finalization Process may be viewed on the following website. http://www.global.tdk.com/corp/en/csr/csr_philosophy/csr02000.htm

Implement the Corporate Motto
Contribute to culture and industry
through creativity

Enhance
corporatevalue

Social aspect

CSR Promotion Structure

Economicaspect

Environmentalaspect

Customers

STEPSTEPIdentifying social issues

Prioritizing material issues
from TDK’s own perspective

Prioritization fromstakeholders’ perspectives

Finalization of materiality

We confirmed the daily communications
content with stakeholders and conductedsimulations of various social issues inlight of ISO26000 and other international
standards relating to CSR.

We prioritized the importance of theaforementioned identified social issues by“management strategies,” “impact of theGroup’s business on society,” “degree ofstakeholder interest,” and “responses to thecurrent situations.”

We studied on prioritization fromstakeholders’ perspectives, reflecting theCSR Report review conducted by experts
from Asia, Europe, and the U.S. andexchanges of views with CSR experts.

We reconsidered the prioritization fromthe perspectives of TDK and stakeholders
and, after gaining approval from the
Executive Committee, finalized themateriality of the TDK Group.

12

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Board of Directors

Business Ethics & CSR Committee

President & CEO
Executive Committee

Legal &Compliance
HQ
CSR Group

Corporate
Strategy HQTechnologyandIntellectual
Property HQ

HumanResources
HQ

SCM &Management
System HQ

Production
Engineering
HQ（As of April 1, 2018）

Finalization of the Materiality
The prioritization in Steps 2 and 3 was conducted on the basis of 46 items chosen in consideration of items required by theGRI-G4, and 19 material issues were identified. These issues were further sorted and classified and finally condensed into thefollowing 10 important themes for the promotion of activities from now on. After approval has been received from the ExecutiveCommittee, the competent departments in the TDK headquarters are taking the initiative in setting key performance indicators
in coordination with TDK Group companies in order to promote related activities.

HighShareholders/Investors

Localcommunities

The CSR Group has in-depth knowledge of social issues and requirements and promotes CSR programs in a professional manner. TheCSR Group strategically examines the various demands received from customers and society from such perspectives as their urgency
and importance, their impact on TDK, the capabilities of TDK, and the degree of contribution to society. Working closely with otherdepartments in the company, the CSR Group formulates policies and implements responsive actions. The CSR Group also promotes
CSR awareness in TDK and organizes training programs. The CSR Group is currently organized as a part of the Legal & Compliance HQ.

7STEP

Importance for stakeholders

Suppliers■ CSR GroupHQFunctions

STEP

TDK’s Code of Conduct

The TDK Business Ethics & CSR Committee, an organization reporting directly to the Board of Directors, is chaired by a director
or corporate officer appointed by the Board, with its membership designated by major HQ Function Managers and the Chair. The
Committee’s mission is to resolve TDK Code of Conduct related problems impacting employees in TDK Group companies around theworld. It also issues reports at the start of each quarter addressing the status of implementation and operation of the Code of Conduct.

BusinessCompanies& BusinessGroups

GRI-G4 made a revision from requiring comprehensive information disclosure to requiring information disclosure with the focus
on materiality. The objective of this revision was to encourage companies to determine their reporting content purposefully
by getting management to be more deeply involved in CSR. TDK held discussions with stakeholders outside the company,
implemented a dialogue with management, and finalized materiality through the following process.

Employees

CSR Activities■ Business Ethics & CSR Committee

ElectronicComponents Sales& MarketingGroupThe Materiality Finalization Process

TDK’sBusiness Activities

Based on the activities of the Business Ethics & CSR
Committee, which reports directly to the Board of Directors, the entire TDK Group acts in concert to address awide range of CSR topics through collaboration with theCSR Group and other departments and business groups
at TDK headquarters and TDK sites around the world.

■ Organization

TDK believes it is important to promote CSR activities that respond to changes in stakeholders and the social and businessenvironment surrounding the Group. From fiscal 2013 TDK has promoted the study of materiality in accordance with the fourth
edition of the Global Reporting Initiative guidelines (GRI-G4),*1 and in fiscal 2015, with the approval of management, we finalized
our materiality. With regard to the designated important CSR issues of “Contribute to the World through Technology,” “Develop
Human Resources,” “Consider the Societal and Environmental Impact of the Supply Chain,” and “Develop and Prosper inHarmony with the Global Environment,” we are continuing to promote activities.

Contribution to regions
and communities

Important CSR Issues

Important Themes

to the World
1 Contributethrough Technology• Addressing social issues by developing new kinds of products the world has not yet seen
• Pursue zero-defect product quality

2 Develop Human Resources• Develop global human resources• Cultivate a corporate culture that respects diversity

Consider the Societal and3 Environmental Impact ofthe Supply Chain

Protection of waterresources

Develop and Prosper• Consider the work environment at manufacturing sites• Consider the work environment of suppliers• Response to conflict minerals

4 in Harmony with the Global• Reduce environmental load throughout life cycle stages• Creating a framework for gauging product contributions

Management• Ensure corporate governance and compliance

Environment

Business activities in considerationof biodiversity

Supply of product information
to consumers

Importance for the TDK Group

Protection of customer privacy

High8