Tokyo Seimitsu

CSR Report 2020

Editorial Policy
The Tokyo Seimitsu Group agrees to the philosophy of the "Sustainable Development Goals (SDGs)"
proposed by the United Nations and recognizes the responsibilities and roles to fulfill towards the"achievement of a sustainable society". As such, the Group is implementing CSR activities, utilizing ISO26000.
In Tokyo Seimitsu, effort for sustainability is positioned as a priority in the mid-term management plan announced
in May 2018. In light of this, "Tokyo Seimitsu CSR Report" introduces a variety of initiatives taken to resolve social
issues through business activities and to achieve sustainable improvement of corporate value.
We hope this report will serve as a communication tool with our stakeholders,promoting their understanding of our group companies.

Scope of This Report
Organizations covered:Tokyo Seimitsu Co., Ltd.
Semiconductor Company, Hachioji Plant (Hachioji City, Tokyo)
Sales Offices (3 offices in Japan)
Metrology Company, Tsuchiura Plant (Tsuchiura City, Ibaraki)
Sales Offices (14 offices in Japan)
Administration Company (Hachioji City, Tokyo)

Affiliated companies:

Tosei Engineering Corp. (Tsuchiura City, Ibaraki, and Miyoshi City, Aichi)
Tosei Systems Co., Ltd.
Tosei Box Corp.
Accretech Powertro System Co., Ltd.

Period covered:

In principle, this report covers activities during the period from April 1, 2019 to March 31, 2020.
Activities continued from before the period covered, as well as those conducted most recently,
are included.

In principle, this report pertains to the Tokyo Seimitsu Group. When the reported information is confined to one or more specific organizations,the scope of coverage is indicated individually.
Issued: October 2020 (next issuance scheduled for October 2021; last issuance date: October 2019)For additional information:·

CSR tab of Tokyo Seimitsu's website:·

Products tab of Tokyo Seimitsu's website:

https://www.accretech.jp/english/csr/index.html
https://www.accretech.jp/english/product/index.html

The following documents can be downloaded.
·Company information:
https://www.accretech.jp/english/company/guide.html·

Financial data:
https://ir.accretech.jp/en/index.html·

CSR Report:
https://www.accretech.jp/english/csr/index.html

SDGs: Goals to be achieved by 2030 through global efforts to make the world better and sustainable

2

CSR REPORT 2020

CONTENTS
CEO'ｓ Message ....................................................... 4
Tokyo Seimitsu's View on CSR ................................ 6
Proﬁle of Tokyo Seimitsu ......................................... 8
Business Overview of Tokyo Seimitsu ................... 9
ACCRETECH Group Code of Conduct.................. 10
Stakeholder Engagement ....................................... 11
Corporate Governance ........................................... 12├ Corporate Governance├ Compliance└ Risk Management
Relationship with Customers ................................. 16├ Initiatives for Quality Control├ Quality Compliance and Employee Training├ Maintenance and Improvement of Product Quality├ Global and Attentive Support System├ Support System Based on Customer Consideration└ Initiatives for Customer Satisfaction
Relationship with Suppliers ................................... 22├ Basic View on Procurement└ Supply Chain Enhancement
Relationships with Employees ...............................24├ Basic Policy for Human Resources├ Promotion of Compliance├ Initiatives for Safe Workplace Environment├ Initiatives for Health of Employees and│ their Families├ Human Resource Development└ Initiatives for Diversity in Work Style andHuman Resources
Relationships with Shareholders and Investors ...... 30├ View on Information Disclosure to│ Shareholders and Investors└ Proactive IR Activities
Relationship with the Global Environment .......... 32├ Basic View on the Environment├ Eco Products├ Eco Factory├ Chemical Substances Control├ Overview of Environmental Impact└ History of Environmental Conservation Activities
Relationship with Society ...................................... 38├ Relationship with Local Society└ Relationship with Industry Groups
Group Companies .................................................... 41
ISO 26000 Correspondence Table ....................... 44

CSR REPORT 2020

3

The Tokyo SeimitsuGroup is always
committed to building a"future full of dreams."

President and CEO

4

CSR REPORT 2020

CEO's Message

In recent years, expectations are increasing for companies
to contribute to the resolution of social issues, especiallythose relating to the SDGs, to realize a sustainable society.
Due to the worldwide spread of COVID-19 since thebeginning of this year, the uncertainty of society has
become more serious, drawing more attention to theefforts to achieve a sustainable society.
Since the launch of the CSR Department under the directcontrol of the CEO in 2015, the Tokyo Seimitsu Group has
declared its commitment to building a "future full of
dreams" as the slogan of the CSR activities and worked forthe achievement of a sustainable society, defining issues
and goals for resolution of the issues.
COVID-19 has impacted various aspects of our life, but theefforts that we have taken so far have worked successfully
to keep the impact on business activities to a minimum.
On the other hand, new areas for improvement and issues
have surfaced. We will continue to work proactively for theachievement of a sustainable society, while reviewing theissues and plans.

Initiatives for ESG
With respect to the initiatives for environment ( E ), society( S ) and governance ( G ), which are important in our
pursuit of sustainability of business and society, to raise
the awareness of all employees and encourage them toactively engage in relevant activities, we have set goals
internally and reported the progress of the activities in the
CSR Report.
Also, the status of important activities have been
explained at the business results briefing. We also
continue to provide our shareholders and investors withaccurate information on our business performance,
financial situation, and business strategy in a timely
manner to improve transparency of our activities andgovernance.
In fiscal 2019, we focused our efforts on "strengtheningof management foundation", "creation of rewarding
workplaces" and "environmental contribution throughbusiness activities ("Eco-factory")" out of the important
theme.

●Important ESG Theme (materiality)
Environment

Environmental contribution throughproducts(Eco-products)
Environmental contribution throughbusiness activities(Eco-factory)
Value provision through productsSociety

Strengthening of sustainablesupply chain
Creation of rewarding workplace

Governance

Strengthening of managementfoundation
Strengthening of complianceWith regards to "strengthening of managementfoundation", the audit and supervisory function of theboard of directors was strengthened to promotesoundness and transparency in corporate activities.
For "creation of rewarding workplaces", effort for healthmanagement was intensified, which resulted in theacquisition of the silver certificate of "Excellent HealthCompany" from the Tokyo Branch of National Federationof Health Insurance Societies.
Concerning "environmental contribution through businessactivities ("Eco-factory")", efforts were made to create acarbon-free society and prevent global warming, such as
adoption of renewable electric power (low carbon
electricity) and installation of solar panels at the MI
building of Tsuchiura Plant built in 2020.
In fiscal 2020, to cope with COVID-19, new work styles,
such as remote work and web meetings, rapidly
prevailed, and new values were cultivated about the work
style. We have been striving for work style reform and willcontinue to do so in order to create rewarding workplacesin the era of new normal.
As a way to avoid "travelling" and "crowd", the COVID-19
pandemic triggered digital transformation (DX), such as
working remotely, as well as increased use of robots.
These technologies are effective not only to combat
COVID-19, but they will be further accelerated andevolved in the era of new normal. We would like tocontinue providing manufacturing equipment for highly
accurate and efficient manufacturing of semiconductor
devices and electronic components from Semiconductor
Company and precision measuring equipment ensuring
precisely processed internal parts of robots to perform
meticulous and complicated operations according todesign from Metrology Company, thereby contributing to
your attempts to create new values.
The Tokyo Seimitsu Group will consolidate the win-win
relationship with many stakeholders and remaincommitted to building a "future full of dreams" with you,while creating new values.

●Major ESG Activities in FY2019

E nvironment·Eco Products: Development of environmentally friendly products
taking LCA (Life Cycle Assessment) into consideration·Prevention of global warming: Partial switching to low carbon
electricity, reduction of CO2 emissions·Reduction in resource usage: Cut in water consumption,higher recycling rate of wastes

Society·Improved workplace environment: Work style reform, promotion ofactive social participation by women, health company declaration·Quality, safety: Quality improvement through QMS activity,
implementation of safety training·Supply chain: Implementation of CSR activity in collaboration
with suppliers

Governance·Compliance: Strengthening of compliance structure andinformation security structure·Risk management: Strengthening of business continuity plan(BCP)

CSR REPORT 20205

Tokyo Seimitsu's View on CSRWith philosophy "we create the world's No. 1 products and grow together to higher
level by integrating excellent technology, wisdom and information available in theworld", the Tokyo Seimitsu Group will work together with all stakeholders such as
manufacturing customers and suppliers to realize sustainable society.

MOTTO

WIN-WIN RELATIONSHIPSCREATE THE WORLD’S NO.1

Wind power
generation

PRODUCTS !

Precision Measuring
Instruments

Smallcomponents

Corporate Philosophy

We create the world's No. 1 products
and grow together to higher level byintegrating excellent technology,
wisdom and information available
in the world.

6

CSR REPORT 2020

Materials

Suppliers

Partners we work withto create new value

Electric
components

Finished Products
Manufacturers
Supported by
Tokyo Seimitsu

Digitalcommunication
devices

SupportAchieve a
Manufacturing andSustainable
Society withSociety
Measuring Technology

Medicaldevices

Next-generation
robotsAutomobiles

Semiconductor
Manufacturing Equipment

The Tokyo Seimitsu Group has contributed to enhancing
the convenience of society and reducing the environmental
impact by providing precision measuring instruments thatare indispensable for our manufacturing customers' highly
efficient production processes and semiconductor
manufacturing equipment that helps produce electronic
products in an energy- and resource-saving manner. Thismeans that the measuring technologies and products that
the Tokyo Seimitsu Group provides support manufacturing
activities of customers and that end products produced
through those activities support the entire society.
In order for us to continue to provide society with various
values through our products, it is essential to grasp theneeds of customers and society from a medium- andlong-term perspective and collaborate with many
suppliers who relate to our corporate philosophy.

We are determined to create new technologies based on
the win-win relationships with stakeholders and support
society through our manufacturing activities that improve
the quality of life and preserve and enhance theenvironment. At the same time, we intend to enter new
fields where we can provide security and safety byleveraging our technologies, thus contributing to thedevelopment of a sustainable society.
Also, in order to keep growing together with stakeholders,
we ensure that human rights are respected in allprocesses of our business activity and evaluate our
impact on the global environment. We strive to fulfill oursocial role in awareness of the responsibility that we bear.
As part of these efforts, the CSR report portrays Tokyo
Seimitsu as it is and is intended to promote various formsof communication with stakeholders.

CSR REPORT 20207

Profile of Tokyo Seimitsu
Corporate Philosophy:

We create the world's No.1 products and grow together to higher level byintegrating excellent technology, wisdom, and information available in the world.
MOTTO:"WIN-WIN RELATIONSHIPS CREATE THE WORLD'S NO.1 PRODUCTS ! "Corporate Brand:

The words "Accrete" and "Technology" are combined to coin
this term, meaning to " Grow Together ".
Established in 1949, Tokyo Seimitsu started manufacturing
and sale of measuring machines by application of
mechanical gauges in 1951, and developed the world's
first germanium pellet automatic thickness sorting machine
in 1958. In this way, since the early years, the Company
has dedicated itself to technical verification in the areas ofsemiconductor manufacturing equipment and precision
measuring instruments.
Our philosophy is: "We create the world's No.1 products
and grow together to higher level by integrating excellent
technology, wisdom, and information available in theworld". Proactively entering into a partnership withcompanies and individuals sharing the philosophy andobjectives with us, we develop innovative new products at
the level of nanotechnology.
We are a technology-oriented company committed tonurturing a global and hybrid corporate culturalenvironment of Tokyo Seimitsu (ACCRETECH)
encompassing different cultures and to building adevelopment system for the world's No.1 products, underthe motto of "WIN-WIN RELATIONSHIPS CREATE THE
WORLD'S NO.1 PRODUCTS," for the purpose of making
this collaboration a success.
The corporate brand, "ACCRETECH," introduced in 2001,
is a term coined by combining the word "Accrete",meaning "to grow together", and the word "Technology".
It represents our corporate philosophy to "create theworld's No.1 products and grow significantly with ourpartners and customers by integrating the excellent
technology, wisdom, and information available in the world".
Based on this philosophy, we have provided manufacturers
around the world with measuring instruments utilizing thestate-of-the-art precision measuring technology as well as
semiconductor manufacturing equipment that takes
advantage of precision positioning technology. Staying
true to the concept of "Nothing can be created withoutmeans of measurement." as the basic principle ofmanufacturing, we will continue our sincere effort to offer
valuable technologies and services that are friendly to theglobal society and environment.

●Financial Data (Consolidated)●●SalesSalesAmountAmount(million(million(millionyen)
yen)
yen)

100,000
100,000
100,000
80,00080,00080,000101,520
101,520
101,520●●FY2019
FY2019Sales
SalesAmountAmountby
by(Million(Millionyen)
yen)
yen)
Business
Business(Million

31,72831,72860,00060,00060,00056,19856,19840,00040,00040,00015,00015,00015,00020,80520,80520,805
17,316
17,316
17,316

13,864
13,864
13,864
13,232
13,232
13,232

12,36012,36012,36010,00010,00010,000
5,000
5,000
5,000

20,00020,00020,000000(million(million(millionyen)
yen)
yen)

20,00020,00020,00087,92787,92787,927

88,19488,19488,194
77,792
77,792
77,792
70,27470,27470,274●●OrdinaryOrdinaryProﬁt
Proﬁt(million(million(millionyen)
yen)
yen)

2015
2015
2015 20162016
2016 20172017
2017 201820182018 2019
2019
2019

(Fiscal(Fiscal(Fiscalyear)
year)
year)

000

■
■
■Precision
Precision
PrecisionMeasuring
Measuring
MeasuringInstrument
Instrument
Instrument■■■Semiconductor
Semiconductor
SemiconductorManufacturing
Manufacturing
ManufacturingEquipment
Equipment
Equipment

2015
2015
2015 20162016
2016 20172017
2017 201820182018 2019
2019
2019

(Fiscal(Fiscal(Fiscalyear)
year)
year)

* The numbers shown are rounded down to the nearest 1,000,000 yen.

8

●
●R&D
R&D

CSR REPORT 2020●
●Capital
CapitalExpenditures
Expenditures●●NumberNumberof
ofemployees
employees

Business Overview of Tokyo Seimitsu
With semiconductor manufacturing equipment and precision measuring instruments
as the pillars of its business, Tokyo Seimitsu conducts business activities globally,
mainly in Asia, but also in other parts of the world including Europe and theAmericas. We aim to create the world's No.1 products and continue to grow with ourpartners and customers by integrating the excellent technology, wisdom andinformation available in the world.

Precision Measuring
Instrument
Our "Precision Measuring
Instruments" have been supplied
to various industries worldwide
such as automobile, heavy duty
equipment, aircraft, etc., and highly
valued by customers and utilized intheir measuring labs and productionlines. We continue our productdeve lopme nt s to a chieve the ir
durability, smaller footprint, and fullyautomatic operation and so forth.

Semiconductor
Production Equipment
Metrology
Company● Products● Outline of Company
Company nameTokyo Seimitsu Co., Ltd.

Head office2968-2, Ishikawa-machi, Hachioji-shi, Tokyo

EstablishedMarch 28, 1949

CEO

Hitoshi Yoshida

Paid-in capital
10,703 million yen (as of March 31, 2020)● Sales Amount● FY2019 Sales Amount by
Exchange listing Tokyo Stock Exchange 1st Section
Business (Million yen)(millionyen)
Sales amount
101,52087,927
million yen (Fiscal 2019)(consolidated)
100,000
Ordinary profit
87,927
88,194
12,360 million
yen (Fiscal 2019)(consolidated)

80,00077,792

Number of70,274
employees(consolidated)

60,000Operation sites

40,0002,250 (as of March 31, 2020)

Hachioji Plant, Tsuchiura Plant, and 17 sales offices
in Japan, 66 overseas offices, 6 domestic
group
56,198(million yen)

20,80520,00017,316
13,232

13,86410,000Precision Measuring
Instrument

5,000

2015 2016 2017 2018 2019

(Fiscal year)● R&D(million yen)

7,469 8,234

8,000
6,292

6,791

7,194

■ Semiconductor Manufacturing Equipment(million yen)(People)15,00013,8722,500

12,000

2,000

9,000

1,500

3,000

(Fiscal year)(Fiscal year)● Number of employees

6,0002015 2016 2017 2018 20192015 2016 2017 2018 2019

● Capital Expenditures

7,477

4,000
2,000

0

■ Precision Measuring Instrument

12,360

Semiconductor
Manufacturing
Equipment(million yen)00

● Ordinary Proﬁt

15,00031,72820,0006,000

Our Semiconductor Company holds
the largest global market sharespecifically in the conventional fields
of wafer manufacturing, test, andback-end processing. In addition,
we have also been active in thefields of CMP (Chemical Mechanical
Planarizers) and Polish Grinders tofulfill our customers’ needs to build
the optimum production systems.

Semiconductor
Company

0

1,559

1,784

1,933

2,119

2,250

1,000

3,796 4,145 3,547

5002015 2016 2017 2018 2019

(Fiscal year)

02015 2016 2017 2018 2019

(Fiscal year)

CSR REPORT 2020

9

ACCRETECH Group Code of Conduct
In order to create a WIN-WIN relationship with all
stakeholders, including customers, shareholders andinvestors, suppliers, etc. and to achieve sustainable
development in the long term, the Tokyo Seimitsu Group
must conduct business activities and take actions thatcan be accepted by society .
The Group has adopted "the ACCRETECH Group Codeof Conduct" (herein after called the "Group Code of
Conduct") to provide a set of guiding principles, such ascompliance with laws and internal regulations, respect forhuman rights, fair and sincere business activities andethical behavior, which are to be observed by all directors

and employees to meet the highest ethical standards andtransparency, and constructs the ComplianceManagement System to promote compliance.
The Tokyo Seimitsu Group provides education for the
directors and employees on the Group Code of Conduct
to improve and raise awareness.
The Group also makes sincere efforts to obtainunderstanding and cooperation from all stakeholders in
its compliance activities.
The Group Code of Conduct contains action guidelines
on the following items:

1

2

3

4

Compliance with
Laws,
Regulations andSocial Norms

Respect for
Human Rights

Safety andEnvironment

Fair and Sincere
Business
Activities

5

6

7

8

Entertainment,
Gifts, Donations
and Bribery

Information
DisclosureIntellectual
Property Rights

Information
Management
and Protection

ACCRETECH Group

Code of
Conduct

10

9

10

11

12

Insider Trading

Conflicts ofInterest

Preservation ofCompany Assets

Media Relations

13

14

15

16

Severing Relations
with Antisocial
Organizations or
Elements

International
Trade Control

Politics andReligionsInternal Control

CSR REPORT 2020

Stakeholder Engagement
We create communication channels with all stakeholders and consolidate thewin-win relationship with them to achieve sustainable and powerful growth.
and deep trust with them and grow together.
We are determined to strengthen win-win relationships
with many stakeholders and continue our activities,
aiming to improve the corporate value and contribute tosociety.

The Tokyo Seimitsu Group considers that continuous,
active and bilateral communication with different
stakeholders is important to create business values andsocial values while fulfilling social responsibilities.
By sharing true needs and issues with stakeholders
through sincere communication, we aim to build strong● Major Stakeholders of Tokyo Seimitsu Group

Contribute to achieving asustainable society bysupporting customer's
manufacturing activities

Customers

IndustrygroupsContribute to the growthof industry by active
interaction

Construct relationshipemphasizing "win-win"and "social responsibility"

Employees

Tokyo
Seimitsu
Group

Suppliers

Improve workplaceenvironment to enable
employees to work lively
Promote human resource
development

Shareholders

Localcommunities

Carry out highly
transparent and proactive
IR activity
Clarify issues throughcommunication
Promote social contribution
activity for resolution● Major Communications with Stakeholders
Stakeholder

Major means of communication

Customers

Implementation of customer satisfaction questionnaire (once a year) Response by Sales/
Exhibition/event (several times a year)
Customer Service (as appropriate)
Metrology Center (seminar, workshop, private show, etc.) (several times a year), etc.

Employees

Labour management negotiation Sending information by company newsletter and intranet
Whistleblower system (as appropriate), etc.
(as appropriate)

Shareholders

Shareholder's general meeting (once a year)
Business results brieﬁng (four times a year)
Issuing shareholder newsletters (twice a year) Brieﬁng for individual investors (once a year)
Sending information by website, etc. (as appropriate)

Local
communities

Issuing newsletter of Hachioji Branch of Tokyo Federation of Labour Standards Associations(5 times a year)/ Attending seminars (as appropriate)
Special lecture for local students (every several years)

Suppliers

CSR questionnaire (once a year)

IndustrygroupsMember of Semiconductor Equipment Association of Japan (SEAJ)
Member of ISO Technical Committee Member of the Japan Society for Precision Engineering
Japan Precision Measuring Instruments Manufacturers Association
SEMI(Semiconductor Equipment and Materials International）, etc.

Response through procurement activity (as appropriate)

CSR REPORT 202011

Corporate Governance
The Tokyo Seimitsu Group is committed to constructing and running a highly transparent
management system and aims to achieve sustainable growth and increase corporate value
in a medium- and long-term basis.
Basic Policies

Corporate Governance

1. The Board of Directors strives to properly perform
its roles and responsibilities to make transparent,
fair, quick, and committed decisions.

■ Basic View on Corporate Governance2. The Company respects the rights of shareholders
and ensures the equality of shareholders.

Tokyo Seimitsu’s corporate brand, "ACCRETECH*",represents its corporate motto, “win-win relationships
create the world’s No. 1 products”. Under this brand, we
strive to achieve sustainable growth and enhance
corporate value amid the current rapid technologicalinnovation and economic globalization.
Recognizing the need of corporate governance to ensure
fair and transparent management activities as a reliablecorporate citizen in the international community, we haveestablished the following five basic policies:

3. The Company strives to have constructive dialogues
with shareholders on investment policy that considers
mid- to long-term returns for shareholders.
4. The Company strives to maintain appropriate
collaboration with stakeholders other than shareholders, such as customers, suppliers, employees,
creditors, and local communities.
5. The Company strives to ensure proper information
disclosure and transparency.

* ACCRETECH is a term coined by the Company, combining"ACCRETE", meaning “to grow together”, and "TECHNOLOGY".

The full text of the Corporate Governance Report can be downloaded
from our website.
https://www.accretech.jp/english/company/basicpolicy.html●Corporate Governance Structure

Shareholders' Meeting
Appointment/dismissal

Board of Directors

Appointment/dismissal
Report9 directors excluding
the Audit andSupervisory
Committee Members

Reply

Audit/oversight(including 2 independent directors)

Request for
consultation forappointment,
dismissal,
remuneration,
etc.

Advisory
CouncilAudit andSupervisory
Committee

Accounting Auditor

Judgment of appropriatenessof accounting audits
Decisions on appointment,
reappointment, and dismissal(4 Members)(including 3 independent directors)

ReportInformation/opinion exchange
meetings of outside directors
Request for
consultation

Reply

Appointment/dismissal/oversight
ReportAssistant auditor

Audit

Representative
Director
Instruction/oversight

ReportReportInstruction/
oversight

Audit

Executive Management Meeting
Executive Officers' Meeting
Instruction/
oversight

Discussion/
report24 Executive Officers

Audit Dept.
Export Control Dept.
New Business Planning Dept.
Management Support Dept.
CSR Dept.

Execution of operation

ReportReportAudit/guidanceCompliance Committee
Risk Management Committee
Information Security Committee
Quality Control Committee
Environmental Management Committee
CSR Dept.
Safety and Health Committee
Internal Control Committee
Planning/report

Instruction/
oversight

Companies (Semiconductor Company, Metrology Company, and Administration Company) and group subsidiaries■ Cross-holding of SharesWith respect to cross-holding of shares, since there is anargument that existence of suppliers and customers as
stable shareholders may loosen the monitoring ofmanagement by shareholders, and it may lead toinefficiency in capital management as cross-held sharesare an underutilized asset on the company's balance
sheet, Tokyo Seimitsu responds to it in accordance withthe following policy.

12

CSR REPORT 2020

"Policy for Cross-Holding of Shares"
The Board of Directors shall comprehensively examine
whether shares held as cross-holdings are meaningful
based on mid- to long-term economic rationality andqualitative aspects, including risk and return.
Cross-held shares that are not considered meaningful toretain as a result of the examination will be reduced, inprinciple, while such shares that are determined tocontribute to increasing the corporate value in themedium to long term, are retained.
Consequently, 3.49 million cross-held shares were soldbetween April 2019 and March 2020.

Corporate Governance■ View and Structure on Internal Controls
We are committed to reinforcing our corporate governanceand compliance and ensuring sound and transparent
management by establishing internal control systems.
The Board of Directors strives to build an effective internal
control system and establish a structure for complying
w i t h re l e v a n t l a w s , re g u l a t i o n s a n d a r t i c l e s o fincorporation to ensure that all business operations are
performed appropriately and soundly. Also, the Audit andSupervisory Committee audits the effectiveness andfunctionality of the internal control system.
The Audit Department, established as an organization
under the direct control of the CEO, conducts internal
audits to verify that the business operations of the Tokyo
Seimitsu Group are conducted in compliance with
relevant laws, regulations, articles of incorporation, andinternal rules, as well as to assess the validity of controls.
The Audit Department also carries out IT control audits incooperation with other relevant departments and teams.
The Audit Department checks the establishment andoperation status of internal controls related to financial
reporting of the Tokyo Seimitsu Group and evaluates theirvalidity.
If the Audit Department finds any violation of laws,
regulations, articles of incorporation, or internal rules, or
any risk due to some other reasons, its General Manager
immediately notifies the CEO and the Board of Directors
takes actions.
Internal audits are conducted according to an annual plan
approved by the Board of Directors, and their results are
immediately reported to the CEO as well as at the Board of
Directors and Executive Management Meetings. Audit
results and suggested improvements are also shared withrelated sections and divisions.
In fiscal 2019, the Audit Department audited four overseas
group companies and seven internal business units andcommittees. Although there were minor findings about
discrepancy between part of the operations and internal
regulations, no major issue, which could lead to violationof laws or critical risks, was pointed out.
Details of the basic policy for the internal control system are available
at our website.
https://www.accretech.jp/english/company/internal_control.html

Compliance■ Basic View on Compliance
The Tokyo Seimitsu Group is determined to observe laws,
regulations and social norms and take sincere and ethicalbehaviors to meet the expectations of all stakeholders. To
ensure that all officers and employees have self-awarenessas a good business person and good citizen and act
according to conscience with a sense of high ethics, wehave constructed the Compliance Management Systemand developed policies and regulations concerningcompliance and ensure that such policies and regulations
are thoroughly understood and followed by all througheducation and training.
In addition to making efforts to routinely grasp thecompliance status, we have established a whistleblower
system to enable officers and employees to consult for
and report any incidents relating to compliance that they

have noticed, aiming to capture issues relating tocompliance at an early stage.

■ Compliance Management System
The Tokyo Seimitsu Group has "the Compliance
Committee" as an organization to manage compliancerelated efforts. This organization is led by the Board of
Directors and executive officers, the other members
include directors in charge of production, engineering, andpersonnel management, presidents of the groupcompanies, etc. Revision of "the ACCRETECH Group
Code of Conduct", which is the basic policy concerningcompliance, establishment and revision of regulations,planning and implementation status of complianceeducation and training, etc. are reported and discussed at
this committee. Also, in case of any risk of violation of or
conflict with laws and regulations, report is given promptly,
and response measures and recurrence prevention
measures are deliberated at the committee.
In fiscal 2019, "the Compliance Committee" functioned
and operated without any problems as a place for reportand deliberation.

■ Compliance Education
It is important that thorough compliance, all directors andemployees should understand applicable laws,
regulations, and rules and realize their obligation tocomply with them.
The Tokyo Seimitsu Group provides a variety of education
programs for the purposes of enrichment of knowledge
concer ning compliance and maintenance andimprovement of awareness level for compliance. In
addition to level-specific education programs such as "newemployee training" and "training for managers", we have
implemented an e-learning training system in Japan.
Education programs for specific job fields and sections,such education for compliance of relevant laws andregulations as part of industrial safety and health training
on production site and legal compliance education
concerning quality and environmental management, arealso implemented.
It has been a practice to periodically report the plans andresults of compliance education programs at "the Compliance
Committee". In fiscal 2019, the programs were implemented
as had been planned, as with the previous years.

■ Whistleblower System
The Tokyo Seimitsu Group has the Compliance Consultation
Service as a whistleblower system since 2006.
This service is offered through the following channels
inside and outside the company. ① Whistleblower contact
point (Compliance Committee members) ② Personnel
Counseling Dept. ③ External lawyers ④ I n d e p e n d e n t
directors ⑤ Directors who are members of Audit andSupervisory Committee. Every effort is made to protect
the anonymity and privacy of whistle blowers and shieldthem from any negative consequences.
Information provided by whistleblowers as well as its
re s p o n s e a re re p o r t e d a n d d e l i b e r a t e d a t " t h eCompliance Committee".
According to the whistleblower records in fiscal 2019,
there was no problem with regard to compliance that may
affect the business activities of the Tokyo Seimitsu Group.

CSR REPORT 202013

■ Eﬀorts to ensure Compliance■ Risk Management System

The Tokyo Seimitsu Group has long been striving toprevent bribery and corruption. In response to recent
strengthening of laws and regulations relating toprevention of bribery and corruption in each country, inJanuary 2020, the Group announced "the Anti-Bribery andAnti-Corruption Policy" in accordance with the provisionsof "the ACCRETECH Group Code of Conduct".
While being intent on preventing bribery and corruption
based on "the Anti-Bribery and Anti-Corruption Policy",
we would like to ask for understanding and cooperation of
the stakeholders in complying with this policy.

"The Risk Management Committee" is in place to manage
risk for the Tokyo Seimitsu Group. Headed by the
President and CEO, the Committee consists of executive
officers from Companies and directors of group companies
appointed by the Chair. Measures to prevent potential risk
are reported from relevant sections to the Committee,
which will then report to the Board of Directors asnecessary. When risk becomes obvious, "the Risk Task
Force" is established immediately.

■ Compliance status
Assessment by internal audits and external audits in fiscal
2019 revealed that with regard to the appropriateness offinancial reporting, efforts for product quality and theenvironment and response to all stakeholders in and outof the company, there was no problem, such as illegal
behavior, violation of laws and non-compliance, that may
affect the business activities.

Risk Management■ View on Risk Management
Risk management policy
We prevent the occurrence of potential risks andrespond to apparent risks revolving around thebusiness of the Tokyo Seimitsu Group.
(Risk management policy)
1. The Tokyo Seimitsu Group strives to prevent theoccurrence of potential risks. If any risk has become
apparent, President & CEO and all employees workin unison to take prompt and prudent action.
2. If any risk has become apparent, priority is given toprotection and saving of human life.
(Risk items and content)
The following risks are assumed to be the risks
revolving around the business.
( 1 ) Risks of occurrence of natural disasters andsudden events (earthquake, fire, storm and flood
damage, terrorism, etc.)( 2 ) Risks caused by economic and financial market
trends (business trends, fluctuation of currency
rates, etc.)( 3 ) Risks caused by changes in customer investment
trends (changes in semiconductor industry,
automotive industry, etc.)( 4 ) Risks caused by competitor and industry trends(price competition, development competition,
intellectual property rights, etc.)( 5 ) Risks concerning public regulations, policies andtaxation (country risk, etc.)( 6 ) Risks concerning human resources (industrial
accident, unexpected incident and accident, etc.)( 7 ) Risks concerning capital providers (changes inshare ownership, etc.)( 8 ) Risks concerning IT system (IT system failure, etc.)( 9 ) Risks concerning the quality of products andservices(10) Other risks associated with business execution

14

CSR REPORT 2020

■ Initiatives for Risk
BCP (Business Continuity Plan)
Tokyo Seimitsu, in line with the "business continuity policy",
reviews and refines its business continuity plan and BCP inplants. In fiscal 2019, based on the damage estimation in theevent of threats and analysis of the fragility of the current
measures conducted for each company and plant in theprevious year, taking the changes in external environment
into account, measures for earthquake-proof reinforcement
and continuation of product supply and service provision ateach department, such as Administration, Production
Control, Manufacturing, IT, Accounting and International
Business, as well as BCPs and manuals were reviewed andrefined. Also, from the viewpoint of fulfilling the basic policy"confirming and ensuring the safety of employees and theirfamilies", evacuation drills were implemented to reconfirm
the basics of evacuation and disaster prevention andresponse and to review night-time evacuation measures andstockpiles. Moreover, with regard to the BCPs of groupcompanies in Japan, in accordance with the organizational
structure, prioritized business and operational structure
based on alignment with the parent company determined in
the previous fiscal year, damage estimation in the event of
threats and analysis of the fragility of the current measures
were conducted to construct and strengthen the structure
for alternative production and data backup. Going forward,
we will continue the initiatives for periodic review andimprovement of the BCPs.
Safety Confirmation System
The Tokyo Seimitsu Group has a "safety confirmation
system" in place that enables us to check whether
employees are safe in the event of a disaster or accident
by using cellular phones or smartphones.
While ensuring that every employee is explained about
this system when joining the Company, in order to checkits effectiveness and to raise awareness of all employees,
we conduct semiannually a "drill to operate the safety
confirmation system" and announce its results. We also
trace once a month employees whose e-mail address is
not registered yet and invalid e-mail addresses to improvethe effectiveness of the system.
Countermeasures against COVID-19
To prevent the spread of COVID-19, with protection of
employees as the topmost priority and enabling businessand operational continuation at the same time, a variety
of preventive countermeasures were implemented.
Reduction of the infection risk of employees

Working from home
Distribution of face masks for work and commuting
Daily temperature check and report
Encouraging employees to take leave when feeling unwell
Voluntary restraint of domestic and overseas business trips

Corporate Governance

Maintenance of workplace hygiene

Keeping alcohol sanitizer, etc.
Deployment of non-contact thermometers
Encouragement of sanitary practices such as hand washingand gargling
Periodic room ventilation
Review of cafeteria and meeting operation (reduction ofparticipants, use of web meetings, etc.)
Reduction of density by changing workplace layout

Moreover, guidelines for response to COVID-19 patientsand their close contacts were established to prevent
transmission. Also, response structure was set up to
prepare for an outbreak of infection.

● Information Security Committee and Functions
ReportDiscussion

Information Security Committee
Secretariat

Planning/
promotion

Information Security

IT Security
Working Group

Office Security
Working Group

Education and Audit
Working Group

Planning andpromotion of overall
activities relating to
IT security

Planning andpromotion of overall
activities relating to
office security

Security education
and audit

Audit

As a provider of manufacturing equipment, inspection
systems and components utilizing state-of-the-art
technology, which are essential for society, we recognizethat protection of information in corporate activities(including intellectual properties, technical information, sales
information and personal information) is our responsibility.
As such, the Company has established the Information
Security Committee to enhance information security,
ensuring proper management of intellectual properties andtrade secrets and prevention of technology leaks.
The Information Security Committee, headed by a directorof the Company, drives company-wide efforts for control
of information security. As subordinate organizations of
the Information Security Committee, IT Security Working
Group mainly in charge of cybersecurity measures, Office
Security Working Group mainly dealing with security within
office environment and Education and Audit Working
Group mainly engaged in monitoring of security activities
and education activities are organized to implement
periodic security control activities.
In order to respond to the cybersecurity risk associatedwith increased use of IT in operations in recent years, the
IT Security Working Group takes multilayered protection

Implementation

Audit

Audit

IT Dept., Production System Dept., General Affairs Dept., andcommittee members of each division in charge of security

measures to block the invasion of viruses.
The Group also analyzes security equipment logs andcollects fragility diagnosis results and threats information,
thereby capturing the latest cybersecurity information,and implements self-inspection and countermeasureswhenever appropriate.
The Office Security Working Group engages in planningand promotion of overall activities and countermeasuresfor office security and reviews security-related regulations
to maintain security.
The Education and Audit Working Group performs auditof the status of security control activities and awarenessactivities concerning security. The Company annuallyprovides information security training to all employees.
A subsidiary of the Company, which provides software,
has acquired the ISO27001 certification and is now
working to expand activities to comply with ISO27001.

Basic policy
Information
security policy
Action guideline and rules● Information
Security System

Action Guideline for the Protection of Personal Information
Action Guideline for the Protection of Specific Personal
Information
Rules for the Protection of Personal Information
Rules for the Protection of Specific Personal
Information

Information Security
Management Rules
Rules for the Use of PCs

Management standards
Personal Information Security Management Standard
Specific Personal Information Security Management
Standard
Management Standard for Measures to Identify
Individuals Providing Individual Numbers

Internet Usage Management Standard
Email Usage Management Standard
Information System Usage Management
Standard

Technical countermeasures

Physical countermeasures

Spam/virus elimination by behavior detection,
Antivirus software, Software for management of
PC operation log, Web Filter, L7 Firewall, MDM(mobile device management), HDD encryption,
Distribution of Windows security patch

Entry/exit management using IC cards
Surveillance camera
Peep prevention filter for PC

Personnel countermeasure
Security educatione-learning
New employee training
Non-disclosure agreement

CSR REPORT 202015

Relationship with

Customers

Paying sincere attention to customer needs and making improvements continuously day
by day, we support manufacturing activities of customers and contribute to the realizationof a sustainable society by providing the latest semiconductor manufacturing equipment
and precision measuring instruments and related support services.

Initiatives for Quality Control■ Basic View on Quality
Since the products provided by Tokyo Seimitsu areproduction equipment, their "quality" should consist of"stable and reliable quality of product" and "quality ofprompt and meticulous support". Based on this belief, weare always striving to improve such "quality". We consider
that provision of superior "quality" will protect andimprove the social status and profits of customers. In
order to achieve this, we are making continuous effort toimprove the quality management practices under the
Tokyo Seimitsu Quality Management System (QMS),
having acquired ISO 9001 certification collectively for
Hachioji and Tsuchiura Plants in 1994.
Activities are implemented in the following four categories
and the progress is reported.
• Compliance and Employee Training• Maintenance and improvement of product quality• Global and Attentive Support System• Efforts for pursuit of customer satisfaction

Tokyo Seimitsu QMS

Quality Policy
Maintenance andimprovement of
product quality

Improvement of
support quality

Human resource development
Compliance■ Quality Policy
Disclosing the following quality policy in and out of thecompany, Tokyo Seimitsu performs quality management
to improve product and support quality.

Quality Policy of Tokyo Seimitsu Co., Ltd.
[Basic Philosophy]
WIN-WIN RELATIONSHIPS CREATE THE WORLD’S
NO.1 PRODUCTS!
1. We comply with laws and regulations in products
and production, and contribute to society byprioritizing on meeting customer requirements.
2. At the beginning of every fiscal year, each Company
reviews its quality targets (priority targets) for theprevious year, and sets new quality targets for the
new year to enhance product quality.
3. We continuously improve the performance andeffectiveness of our quality management system.
4. We develop user-friendly products by establishingpartnerships with users.
5. We seek to improve quality through total quality
control (TQC).
6. We seek to improve quality through partnerships
with subcontractors.
7. We enhance customer support in business,
technology and services.
8. We incorporate safety, quality, and reliability ineach production process to achieve stable supply.
9. The quality management system applies to theactivities, products, and services of Semiconductor
and Metrology Companies.
10. This quality policy is disclosed internally and externally.

Quality Compliance and
Employee Training
Compliance is essential for provision of products andservices that offer security and trust to customers. As
such, it is positioned as the foundation of the Company.
Also, since quality activities are carried out by employees,
we consider that human resource development is the key
to sustaining the activities.
We are striving to maintain and improve product quality
and improve support quality based on compliance andhuman resource development.

■ Compliance Education
An e-learning system is implemented to provide compliancetraining to all employees.
After the training, comprehension test is conducted to
improve the comprehension of training participants.
Also, training on the Group Code of Conduct and important
items of information security is annually implemented toraise employees' awareness of compliance.

16

CSR REPORT 2020

Relationship with Customers■ Quality Training
Training on the ISO management system is implemented inan e-learning format to disseminate the knowledge of the
management system. Also, a system is constructed toensure that operations are performed based on the latest
regulations and standards, making it a rule that wheneverinternal regulations and standards are revised, training is
conducted in each department and implementation status ischecked by internal audit. In November every year, as anactivity of Quality Month, quality slogans are solicited from
employees in order to raise and share quality awarenessamong all employees. Also, employee training includes
education for development of personnel with the skills andcompetence required for performing operations that may
impact product quality, which is conducted according to theinternal regulations.

■ Response to Laws and Regulations of
Other Countries (RoHS/REACH/PFOA)Tokyo Seimitsu manages compliance with the RoHS
directive, Registration, Evaluation, Authorisation andRestriction of Chemicals (REACH) and the Stockholm
convention on Persistent Organic Pollutants for eachmaterial supplied, using an in-house system.
With the cooperation of suppliers, information of chemical
substances contained in the supplied material is registered in
the system to check the compliance for each product.
As for newly adopted materials, chemical substances
contained in the materials are checked at the time of selection
to make sure that they are compliant with the regulations.

Maintenance and Improvementof Product Quality
The Company operates quality management system
based on ISO9001 and builds safety, quality and reliability
in the product realization process, thereby improving
quality through total quality control (TQC). Always keeping
in mind that the Company is responsible for providing
products and services of stable and superior quality toprotect and improve the social status and profits ofcustomers, we are implementing activities for quality
improvement and enhancement.

■ Quality Improvement Activities by
QMS System Program
Continuous efforts have been made to strengthen quality
control since the collective acquisition of ISO9001
certification by Hachioji and Tsuchiura Plants in 1994. In
every fiscal year, quality targets are set for each business
unit to tackle quality improvement. For the purposes of
performance improvement of the quality management
system and continuous improvement, actual data ofpredetermined management parameters (quality
management system program achievement rate, on-time
delivery rate, rate of non-conforming product, defective
rate, complaint rate, etc.) are evaluated at the QC meeting
to develop and implement improvement measures.
After the acquisition of ISO9001:2015 certification, operationof a new quality system program began in fiscal 2017.
With this new quality management system program, quality
policy was revised and quality targets were set by eachplant to improve quality performance in order to address
the needs of stakeholders, internal and external challenges
and manage risk.
More specifically, each section devises its implementation
plan to achieve the quality targets by creating animplementation plan document for quality targets as well
as a quality management system program.
Quality Working Group, in its quarterly meetings, confirms
achievements of the quality management system program,evaluates progress and examines measures for
improvement.
In the last fiscal year, of the 71 targets in total, 48 targets
were 100% achieved and the target achievement rate was
68%. With regard to the targets that were not achieved,causes are identified and feedback is given aboutmeasures for improvement.

■ Change Control Enhancement
We have strived to eliminate defects by verifying the risks
associated with changes in design and production and taking
measures beforehand. In 2017, change control rules were
established in high-level standard documents of theCompany and the rules were incorporated into lower-levelstandard documents of relevant sections. Since then, we
have been mitigating the risks of defects caused by changes
by performing risk assessment of change control inaccordance with the control standards.
We are accumulating change control results data to use it
as a data base of similar change risks and seek quicker andmore efficient change control operation.
Also, in 2018, with regard to reduction of complaints bychange control, we started setting change control
effectiveness as a KPI, with the target as 0.5% or lower.
Change control effectiveness ratio [%] =No. of complaints occurred / No. of change
controls implemented × 100%
The change control effectiveness ratio in fiscal 2019 was
0.45%, which achieved the target.

■ Supplier Quality Improvement Activities
Securing the quality of outsourced parts is essential torealize the stability and reliability of the quality in our
products. Regarding suppliers as important partners, we
fulfill social responsibilities through the entire supply
chain. "Expected Quality System and Environmental
System of Suppliers" is distributed to suppliers tomaintain and improve the quality of outsourced parts.
Quality defects of outsourced parts are managed by"Defective Product Notice", and the Company works withthe suppliers to identify the root cause and implement
recurrence prevention measures. Also, depending on the
degree of occurrence of defective products, supplierquality audit is conducted to achieve quality improvement
through cooperative effort between the Company and the
supplier. In fiscal 2019, considering the delivery trackrecord and quality status, 16 suppliers were subjected toquality audit for improvement.

CSR REPORT 202017

Global and Attentive
Support System■ Semiconductor Manufacturing
Equipment Business
Worldwide Semiconductor Business andGlobal Support System
In fiscal 2019, we supplied maintenance parts to 432
customer sites in 30 countries around the world.
(China, Taiwan, South Korea, Thailand, Philippines,
Malaysia, Singapore, Indonesia, Vietnam, US, Canada,
Mexico, Brazil, Germany, France, UK, Austria, Italy,
Switzerland, Czech, Denmark, Hungary, Finland, Bulgaria,
Belgium, Portugal, Russia, Costa Rica, Morocco, Romania)
Our semiconductor manufacturing equipment operatingaround the world is supported by our group companies
consisting of 47 locations in 13 countries. In particular, for
China with a vast land and increasing new deliveries,
service locations are established in 12 areas andApplication Center with the latest demonstrationequipment is located in Shanghai and Shenzhen to meet avariety of customer requests, including observation of
actual equipment, demonstration processing andevaluation and training.

Training System
In 2011, within the Customer Engineering (CE) Department,
which is responsible for customer support, Global Service
Engineer (GSE) Group was organized to start training andsupport to overseas service engineers. Members of thisGroup are personnel with experience of working as
expatriates and foreign engineers based in Japan. They
communicate with engineers and sales personnel ofoverseas group companies almost every day by email,web meeting and telephone to support them in responding
to customer requests, ensuring stable operation ofequipment and resolving problems.

Training session

As engineer training specific to the GSE Group, Global
Training, which is a program to invite young overseas
engineers to Japan as trainees for one-year practicaltraining, was started in 2014.

18

CSR REPORT 2020

The objective of this training is to promote the trainees'
understanding of technology, quality, production andapplications so that they will be able to provide customer
support at a higher level after returning to their homecountries. By attending the training, the trainees can build
a close connection with different sections of Hachioji Plant
and will become important resources for the company aspromising engineers. The cumulative number of trainees
until 2019 is 17. They are actively working at different
locations around the world and none of them has left thecompany.
With respect to customer training, equipment operation andmaintenance training is conducted not only for customers
visiting our sites. If requested by customers, we also
provide training at customer sites around the world.
The training content is designed flexibly as we often
receive special requests from customers beforehand, andtraining manuals have been prepared accordingly.
In the COVID-19 pandemic since the beginning of 2020,
training methods that were used until the previous year
cannot be used anymore. As this situation is expected tocontinue for some time, in order to shift to IT-based remotetraining in which trainees can train by using the virtual
reality (VR) technology without having the equipment infront of them, the Company has starting up a project teammainly consisting of young employees within the CE
Department to develop new training methods.

Standardization of Support Quality and
Implementation of GSM
Since 2013, the GSE Group has been organizing Global
Service Meeting (GSM) every year. For this meeting, which
also includes practical training using the equipment, about 60
people representing the service engineers of overseas groupcompanies meet at Hachioji Plant to receive of the latest
information and information sharing.
The GSM has already been held seven times and theexchange among attendees at the meeting has helped
deepen the trust between the CE Department and overseas
group companies. In order to maintain the speediness andmeticulousness in responding to customer requests during
the COVID-19 pandemics, the cooperative relationship withoverseas group companies is gaining importance. The GSM
in fiscal 2020 will be a web meeting. With the trust-based
relationship that has been built with overseas groupcompanies, we should be able to overcome the current
difficulties. At the time of the GSM, skills of all engineers arechecked for accreditation and management of skill levels. By
assigning work to each engineer within their capability
according to their skill level, high quality of work is provided
for the benefit of customers. For each type of equipment,
four ranks of skills are defined for engineers, and training
manuals have beendeveloped according toeach rank. When an
engineer is approved by
the trainer team manager
for completion of the
training that they haveattended, their rank goesup, which will lead topromotion.

Relationship with Customers

GSM(Global Service Meeting)

Supply System of Service Parts for
Global Response
At present, Parts Center of the CE Department handles
more than 20,000 different parts. Supply of service partsand consumables is an essential factor to ensure stable
operation of our products, which are operating on a 24hour basis around the world.

Supply System Based on
Customer Consideration■ Precision Measuring Instrument BusinessSupport Activities to Shape Customer's
Future by Precision Measuring
Technology
Under the slogan of "Nothing can be created withoutmeans of measurement.", Tokyo Seimitsu regards our
precision metrology instrument business as "the original
point of manufacturing" that provides society withThe Parts Center stocks service parts at 15 locations inJapan and abroad. While maintaining an appropriate
inventory level, existing stocks are reviewed as needed
and parts for new products are added to optimize theinventory.
Also, CE Stock Manager System enables engineers toshare the stock status around the world to facilitate
emergency response. This system is also effective interms of BCP.
A lot of precision parts and parts for special use are used
for state-of-the-art equipment. As such, to export parts, itis necessary to closely watch export restrictions relating
to changes in political situations and environmental
issues. With compliance as the top priority, all companiesof the Tokyo Seimitsu Group export parts after
examination by the Export Control Department understrict rules prescribed within the company. Because of its
AEO (Authorized Economic Operator) status granted by
Tokyo Customs as an excellent exporter and Special
General Comprehensive License from METI, Tokyo
Seimitsu is able to process export procedures promptly.

"precision" and "reliability" instead of seeing it as mere
sale of measuring instruments. No manufacturing activity
is possible without the process of "measurement". Basedon the belief that "measuring accurately" is indispensablefor our customers to provide reliable products to society,
we have set up the structure capable of providing various
supports.

Initiatives of Metrology Center
To provide meticulous support considerate of customer
needs, Tokyo Seimitsu has Metrology Centers located in
Tsuchiura, Hachioji, Osaka and Nagoya. The Center isstaffed with engineers having expertise in metrology andequipment operation to meet diverse customer needs.

Concept of Metrology Center: "Trust" and "Passion"
Support customer needs in measurement andcontribute to development of metrology market

Permanent showroom forcustomers to understandour technology and products

Trust

Solution area to work withcustomers for addressing customer
needs and making proposals

Technology

Sincerity

Passion

Provision of customer support
Prompt and accurate service forcustomer satisfaction
Reliability

CSR REPORT 2020

19

＜"A place for learning" about our products andmetrology 【＞: Technology】
For customers who have our measuring instruments,
dealers, universities, high schools and companies in local
community, we provide "places for learning" by holding
events such as plant tours, product workshops, andmetrology seminars in order to deepen their understandingof metrology and help them understand our products
through various product exhibits.
As an additional outreach activity, we also hold web
seminars to provide information to as many people aspossible.
● Number of "Places for Learning" provided

Unit: times

Uses

Training for Engineers Overseas
The global service department for precision measuring
instruments invites service engineers from overseas locations
to the Metrology Center at the Tsuchiura Plant for intensive
training. Basic training for new engineers and advanced
training targeting skilled and experienced engineers areoffered and strengthening the global support system, as wellas preparing the manuals and procedures in each language.
● Activities in FY2019
Contents

3 participants from 2 countries

Advanced training

14 participants from 6 countries

times

Private trade shows, open-houses, etc.
Seminars, lectures, etc.
Lectures and measurement guidance at public organizations

12
11
15

＜Proposal of solutions 【Trust】【 Sincerity】＞:
In order to stengthen the win-win relationship withcustomers, in addition to meeting the requests of customers
who visit the Center, the Center offers services, such as
proposing possible solutions and providing operation
training, aspiring to go beyond customer expectations.
Catering to the needs of customers who are unable to visit,a remote customer response system is in place.
＜Customer support 【【 Reliability】＞: Passion】
The Center has a "centralized call center" for consultation
about measuring and support in operating products andtroubleshooting. We provide support to customers who
have purchased measuring instruments from us, byoffering guidance at the training school that is held
regularly, etc.
In cases where customers are unable to conduct
measurements internally because "they have no measuring
instruments" or "their measuring instruments do not havethe necessary measurement function", we offer"consignment measurement" service whereby we conduct
measurements for these customers.

Opening of Renovated Osaka
Metrology Center
In conjunction with the reopening of Osaka Office after
renovation, the Metrology Center was extended to
double the floor area. The number of models installed
was increased 1.5 times for significant improvement in
the support system mainly for customers in WestJapan.
The Center has a seminar room accommodating up to
100 people, which can be used for large-scale events
rather than being used merely as a meeting space.
It also has a communication lounge to offer a relaxing
place for visitors besides introducing our technology
to them. Accordingly, the Center now functions more
effectively as a place for introduction to technology,
proposal of solutions and relaxation.

● Activities in FY2019
Contents
Calls responded by call center
Training sessions

times

10, 924
341
Osaka Office

Customer inquiries are analyzed, and findings are taken
into account when creating operation manuals so that
customers will be able to use the instruments more
comfortably.
＜Additional activities＞
We will step up our efforts to achieve higher level ofcustomer satisfaction by meeting diversified customer
requests, such as proactively addressing the needs ofsociety after the outbreak of COVID-19 (web seminars,
remote response).
Osaka Metrology Center

20

CSR REPORT 2020

times

Basic training

Sales
Product

Level ofsatisfaction

operation/
maintenanceFiscal 2019
Fiscal 2018
■ Improvement Activity Based on
Customer Satisfaction Surveys
SupportInitiatives for Customer
Satisfaction

Cost(Initiatives of Metrology Company)■ Improvement Activity Based on
Customer Satisfaction Surveys(Initiatives of Semiconductor Company)

The Semiconductor Company annually conducts customer
satisfaction questionnaire surveys for the products tocompile and analyze the survey results.
The survey revealed improvements for a lot of items ascompared to the results of fiscal 2018.
From the results of this fiscal year, graphs for prober,semiconductor manufacturing equipment, and blade, acutting tool, are shown below as examples.

Quality customer satisfaction
Metrology Company conducts
questionnaire surveys for customers one year after thepurchase of the products to compile and analyze thesurvey results. The customer satisfaction score in fiscal
2019 was 3.82.

● Results of Customer Satisfaction Survey ofMetrology Company (Fiscal 2019)
Overall5

After-sales
services

4

Sales response

3

Ne

2

Results of the 2019 Questionnaire (Prober)
4: Satisfactory, 3: Fair, 2: Less satisfactory, 1: Unsatisfactory
Sales
Product
performance/
operation/
maintenance3

Level ofsatisfaction

2

Fiscal 20191

Fiscal 2018

Support

Cost

Quality

Results of the 2019 Questionnaire (Blade)tory

4: Satisfactory, 3: Fair, 2: Less satisfactory, 1: Unsatisfactory

2

InquiryResultsforPrice (Blade)of the12019 Questionnaire
operation
0

4: Satisfactory, 3: Fair, 2: Less satisfactory, 1: Unsatisfactory
Delivery

Sales

Reliability
Durability

4

ober)

Product performance
Level of Fiscal 2019
satisfaction

Product functions
TargetPerformance
Fiscal 2019

The target score, which is 3.7, was achieved in fiscal 2019.
Fiscal 2018
However, aiming to achieve further improvement, thePositive
Neutral
Negatives
Company responds to each customer, considering the2%8%comments
described on the 0%questionnaire sheets.
Also, in
Delivery Score)
July 2019, the useCostof NPS* (Net Promoter
questionnaire was started in addition to the traditionalcustomer satisfaction questionnaire survey. Trend analysis
is conducted for the NPS questionnaire results to improvecustomer loyalty.

15.

56.

28.

Sales
4

uct
ormance/
ation/
tenance

After-sales
Levelofservices
satisfaction

Fiscal 2019
Fiscal 2018

ort

onse

y

performance/
Relationship with Customers

Overall32

Performance
Sales response
Fiscal 20191

Inquiry for
operation

Price

Cost
Reliability
Durability

Fiscal 2018

Delivery
Delivery

Positive

15.2%
Negatives
28.8%

Neutral56.0%

Product
performance
Productfunctionsin relation
Subjects
requiring
improvement wereextracted
to the quality management
program of the QMS
Fiscal 2019system Target
activities based on the survey results to implement specificactivities to improve customer satisfaction. As a subject for
improvement, an instruction manual of equipment was
Positive
Neutral
Negatives
improved.
The instruction
manual after the
improvement
was distributed
tocustomers
asasampleversion8%
to review2%0%
the improvement activity. As a result, it was confirmed thatthe satisfaction score of the instruction manual andmaintenancePositive
manual was improved about 10%. Moving
forward, we15.
will 2%strive to improve customer satisfaction,
Negatives
reflecting
on customer feedback.
28.8%

15.

Neutral

56.0%

56.

28.

CSR REPORT 202021

Relationship with

Suppliers

In order to deepen win-win relationships with all suppliers, we aim to build a supply chain
focused on social responsibility and work with them to achieve sustainable growth.

Basic View on Procurement
Suppliers provide the materials, components, and services
that are indispensable for us to deliver high-performanceand high-quality products to customers, and we consider
all of them our valued partners. To establish win-win
relationships with these suppliers, it is essential to comply
with laws, regulations and social norms and fulfill social
responsibilities in terms of "human rights and labour","occupational safety and health", "environment", "ethics"
and "information security" among others by the supply
chain as a whole, let alone address "safety and quality".
We expect every supplier to act voluntarily as a responsible
enterprise committed to meeting the needs of theinternational community. By working together with them,
we intend to turn our entire supply chain into a robust
value chain and promote value-added manufacturing.

Supply Chain Enhancement
Tokyo Seimitsu has declared compliance with RBA(Responsible Business Alliance: old EICC). To meet therequirements of the international community with regard tocorporate responsibilities for ensuring safe working
environment, protecting worker dignity and reducing theenvironmental impacts, among others, we ask suppliers tocooperate in complying with the international standards.

■ Formulation of CSR Guidelines for
Suppliers and Request for Cooperation● Outline of Tokyo Seimitsu
Supplier CSR Guidelines
Prefaces
1. Procurement policy
2. Supplier CSR Guidelines[Human rights and labour][Occupational safety and health][Environment][Ethics][Safety and Quality][Information Security]
3. Requests for Suppliers
4. Revision history

In order to meet expectations of RBA and the global
community, we have created "Tokyo Seimitsu CSR
Guidelines for Suppliers" which state the "procurement
policy" and stipulate guidelines for suppliers in "humanrights and labour", "occupational safety and health",22

CSR REPORT 2020

"environment", "ethics", "safety and quality" as well as"information security". We ask for suppliers' understandingof the guidelines and cooperation in promoting sustainableprocurement.

■ Construction of Supplier Survey System
As a study into suppliers' state with CSR, Tokyo Seimitsu
started a survey in fiscal 2016 using an "SCM (Supply
Chain Management) check sheet". The survey is conductedto score the performance of suppliers with regard to eighthigh-level classifications: "legal compliance", "ethics
management", "environmental management", "facility andequipment (safety) management", "labour and employment
management", "biodiversity", "conflict minerals" and"business continuity". The results show the average scoreis 88.7 (out of the maximum of 100) and that more than
90% of the suppliers scored 80 or higher. Items with lowscores were "promotion of women's advancement inlabour and employment management", "biodiversity" and"business continuity". We are undertaking improvementson these items in cooperation with suppliers. With regard
to the other five items, we have confirmed that they are
managed without problems and shared our awareness with
suppliers.
We also visit our suppliers, inquire how they work on CSR
as well as their difficulties and discuss ways to assist themin overcoming challenges. We are advancing collaborationin order to have our entire supply chain fulfill social
responsibilities by deepening close cooperation with
suppliers.
In addition, Tokyo Seimitsu has also asked suppliers
to conduct separate surveys for improvement on"environmental consideration". We have asked them toconduct a survey based on "Environmental Management
Structure Survey Sheet" and submit "Environmental
Impact Contractor Register" and "Environmental
Conservation Status Survey Sheet" by identifying theoperations that may affect the environment.

● Major Items in
Supplier
Questionnaire● Survey on Response to
CSR by SCM Check Sheet
Scores in theseventies,

4.8%

1. Legal compliance
2. Ethics management
3. Environmental
management
4. Facilities andequipment
5. Employment
management
6. Biodiversity
7. Conflict minerals
8. Business continuity

Scoresin theeighties,

51.2%

Scoresin thenineties,

44.0%

The survey based on "SCM check sheet"has been implemented since 2016. The
survey covered a total of 166 suppliers.
For "promotion of active social participation
by women", "biodiversity" and "activities forbusiness continuity in case of emergency"
which scored low, improvements will bemade through supplier workshop.

Relationship with Suppliers■ Commendation of SupplierTokyo Seimitsu conducts supplier commendation once ayear. We commend excellent suppliers based on theevaluation of "quality", "cost", "delivery", "cooperation"and "management".
Supplier commendation of fiscal 2019 was postponed toprevent the spread of COVID-19.

■ Workshops and Other Events for SuppliersTokyo Seimitsu annually holds a CSR seminar at aworkshop organized by suppliers to help them understandthe importance of fulfilling social responsibilities as asupply chain member.

● CSR Seminars by Tokyo Seimitsu

The workshop scheduled in late February 2020 was
postponed to prevent the spread of COVID-19, butinstead of holding the CSR seminar, materials were
distributed to suppliers for information sharing andopinions were exchanged with them by email.
Distributed materials
Trends of substances prohibited in products in 2020
and request for cooperation
Sharing of information about extensive damages
caused by the typhoons in 2019 and preparing forsuch damages
Introduction to disaster control measures by Tokyo
Seimitsu
In order to strengthen win-win relationships with suppliers,
we aim to build a supply chain focused on social
responsibility and work with them to achieve sustainablegrowth.

Fiscal 2015

Our Views on CSR

Fiscal 2016

Description of "SCM Check Sheet"and Survey Request

Fiscal 2017

Trends in CSR
Report of Previous Year's "SCM Check Sheet" Results
Report of CSR Activities by Tokyo Seimitsu● CSR Seminar in fiscal 2019 (sending materials)

Fiscal 2019

Trends of substances prohibited in products in 2020
Sharing of information about damages caused by thetyphoons in 2019, review of BCP
Introduction to disaster control measures by Tokyo
Seimitsu

Fiscal 2018

Report of CSR Activities by Tokyo Seimitsu
Trends in CSR
Supply Chain Initiatives
Supplier CSR Guidelines (First Version)*Explanation and request for submission of "check report"■ Training for Tokyo Seimitsu Employees
The Company provides training by e-learning to employeesof the Purchasing Department who interact with suppliers.
The training covers "ethics", "safety and quality" and"information security" among other subjects to ensure theappropriateness of their response to suppliers.
Workshop for suppliers● Subjects of Employee Training
1. Tokyo Seimitsu Code of Conduct
2. The Subcontract Act
3. Information Security
4. Ethics

CSR REPORT 202023

Relationship with

Employees

To enable employees to work lively, we strive to enrich the work environment in which eachindividual worker remains mentally and physically healthy and safe and can demonstrate
their full potential, and we also promote human resource development.

Basic Policy for Human
Resources■ Basic View on Human Resources
Employees are the property of Tokyo Seimitsu. For
sustainable growth of the Company, it is essential tocherish and nurture this property. We have been making
effort in the following five areas to create comfortable, safeand healthy workplaces and provide opportunities andenvironment to foster growth, thereby building trust with
employees to ensure that they work lively with a sense offulfillment.
1. Promotion of Compliance
2. Initiatives for Safe Workplace Environment
3. Initiatives for Health of Employees and their Families
4. Human Resource Development
5. Initiatives for Diversity in Work Style and Human
Resources

Employees' sense of fulfillment

Diversehuman
resources

Synergy effectWorkplace without
safety risk

Growth ofemployees

Health of employees
and their families

Compliance

Promotion of Compliance
Compliance of laws and social norms on labour standards
and industrial safety and health and prohibition of acts of
infringement of human rights are declared in the "theACCRETECH Group Code of Conduct", and e-learning
training on this code of conduct is periodically conducted.
The e-learning training includes contact information for
whistleblowing and consultation as prescribed in thewhistleblower system, and employees are encouraged to
inform the contact if they encounter any cases of harassmentor violation and infringement of the Code of Conduct.
Tokyo Seimitsu performs periodic audit of the groupcompanies in Japan and abroad to ensure that they
comply with local laws and regulations, instructing them toprevent child labour by checking the age on identification
documents before employment and avoid restricting
employees equivalent to forced labour.

24

CSR REPORT 2020

Also, Tokyo Seimitsu has a labour union with the rights oflabour- management consultation guaranteed by collective
agreement. With regard to checking of working hours andwages against the statutory limit and minimum wage andproblems and concerns about workplace environment,labour management consultation is conducted through thelabour union, thereby improving the working environment
by respectful discussions.

Initiatives for Safe Workplace
Environment
Since Tokyo Seimitsu is a manufacturer of machines, a lotof equipment, parts, tools and processing machines exist
at the sites of manufacturing and logistics. A lot of safety
risks requiring attention are involved as they include heavy
items, sharp edges, objects moving or rotating at a highspeed, high voltage electrodes and hazardous chemicals.
Also, as the product is equipment for production, several
operations, such as delivery, installation and maintenance,
are carried out at customer's production sites, whichmakes the working environment unfamiliar to the operator.
Identifying these risks with attention to details and taking
measures to minimize the safety risks based on theobservation and prediction of operator's movement andflowline will enable operators to perform daily work in areasonable manner without hesitation, allowing them tofeel a great sense of fulfillment from work.
Based on this concept, activities are reported regarding thefollowing four phases.
1. Safety management within the plants
2. Ensuring safety outside the plants
3. Disaster prevention and mitigation, emergency lifesaving
4. Traffic safety in commuting and business trips■ Safety Management within the Plants
The plant is a space where employees perform daily
operations. The basic structure does not change
significantly unless additional buildings are built or existingbuildings are renovated, but the plant is always changing
due to fluctuations in production, changes in productcomposition and improvement activities. Therefore, it isimportant to continue the activities to look out for safety
risks and reduce them.
In Hachioji and Tsuchiura Plants, activities to reduce
industrial accidents and company car accidents have been
continuously implemented by setting reduction targets.
Under the Safety and Health Committee of each plant,
dedicated subcommittees for safety, health, disasterprevention are organized to promote the activities in a
multifaceted way.

Activities of the Safety and Health Committee
Each plant has a Safety and Health Committee, led by theplant manager who is the "general safety and healthmanager". The Committee is responsible for industrial
safety related to the environment, machinery, and work,
industrial health related to infection, food poisoning, mental

Relationship with Employees

health, chemicals, and disaster prevention and mitigationsuch as fire fighting, traffic safety and emergency aid,
based on an annual plan approved by the Board of
Directors. Internal audits are conducted twice a year andthe results are submitted to Audit Department and reported
to Board of Directors. The Committee is subject to auditing
by Audit Dept.

Reduction of industrial accidents
Both Semiconductor Company and Metrology Company
have had no accident in recent years. However, two
industrial accidents (eight lost workdays in total) occurredin Hachioji Plant of Semiconductor Company.
Both of the two industrial accidents occurred in the mass
production process of a large-scale new product.
According to the internal regulation, it is mandatory to
perform risk assessment to ensure safety whenever anoperation process is added or modified, but risk identification
for the newly implemented operations was inadequate. We
will strive to develop and strengthen human resources
capable of performing an assessment to ensure strict
implementation of the risk assessment process. Tsuchiura
Plant of Metrology Company is renewing the record of 30
consecutive years without accident.

High-pressure gas safety training (at Hachioji Plant)

Safety inspection and 5S* patrol

Semiconductor Company

Fiscal 2017 Fiscal 2018 Fiscal 2019

Accident frequency rate
Accident severity rate

0. 00
0. 0000

0. 97
0. 0039

In Hachioji Plant, safety inspection is annually conductedby teams of several employees including the plant
manager for all workplaces. In the safety inspection, safety
risks are extracted by using a check sheet and workplaces
that are found to be risky are given an instruction forimprovement. After a certain period of time, follow-up
inspection is conducted for those workplaces to verify theeffectiveness of improvement measures.
Also, periodic 5S patrol is implemented for workplacehousekeeping. Since fiscal 2017, a scoring system has
been in place and workplaces with a high score arerecognized twice a year, which leads to raising the 5S
awareness of employees in each workplace.

Metrology Company

Fiscal 2017 Fiscal 2018 Fiscal 2019

*5S (Sorting, Set in order, Shining, Standardizing, Sustaining the Discipline)

Accident frequency rate

0. 00
0. 0000

Accident severity rate

0. 00
0. 0000
0. 00
0. 0000

0. 00
0. 0000

Industrial Safety Activities
In addition to assessment and control of work environment
risks through workplace inspection and risk assessment
conducted when new machines are installed or operatingprocedures are changed, we implement education andtraining in machine operations, heavy machinery operations
and wiring operations as appropriate to avoid hazards.
Besides in-house training, employees actively participate inindustrial safety seminars organized by external training
institutes. Most of the external seminars are organized by the
Tokyo Federation of Labour Standards Associations thatTokyo Seimitsu is involved in operation as a member (See"Activities in the Hachioji Area"). The seminars are useful as ameans of training for our employees as well as promotion ofindustrial accident prevention activities for local workers● Activities implemented in fiscal 2019

Hachioji Plant

Number of
employees(Organized by Tokyo Federation of Labour Standards Associations: * ) covered

Safety and health education for
new employees (at the time of hiring)*

58

Skill training course for slinging work,
Special training course for crane operation*

33

Skill training course for operations chief of organic solvent*

6
15

Skill training course for specified chemical substances
and tetraalkyl lead, etc. chief lecture*4

Training for foremen and safety and health supervisors*

Special training for work in dusty environment*
High-pressure gas safety training

Handling of chemicals
With regard to purchasing of new chemicals, purchasing
permits for both plants are collectively issued by the section
in charge in Hachioji Plant so that the section is aware of all
the chemicals used and stored in each plant. This has madeit possible to centrally manage the risks and methods of use
and storage of chemicals as well as relevant laws andregulations to comply with and the requirements thereof,
and promptly instruct all applicable sections to prepare forrevisions of laws and regulations. According to thisstandard, sections controlling or using chemicals are
obligated to perform periodic inspection and quantity
check. In addition to periodic internal audit conducted bypersonnel qualified as ISO14001 internal auditor, Regulated
Substance Control Working Group under the Safety and
Health Committee conducts patrols to check the
management and storage status of chemicals. In fiscal
2019, the patrol was conducted seven times, including
follow-up inspections.
In fiscal 2019, 74 cases (254 cases, cumulatively) of
chemical risk assessment were conducted in the twoplants combined for adopting new chemicals andreviewing the chemicals that are currently used.

2
36

Tsuchiura Plant

Number of
employees
covered

Safety training for forklift, slinging and crane operations

52

CSR REPORT 202025

■ Ensuring Safety Outside the Plants
As the product provided by
Tokyo Seimitsu is production
equipment, a lot of operations,such as installation, maintenanceand modification of equipment,
are carried out at customer's
production sites. Risks in ourplants are managed according toour own standards and methods,
Operators in clean room clothing
and we are aware of safety
standards concerning the environment and equipment.
However, risks in customer's plants cannot be captured
beforehand. In particular, the area where semiconductor
manufacturing equipment operates is a space called"super clean room", and as people working in this area
wear special clean room clothing, their field of vision is
reduced and movements are restricted.
What is required of operators under such circumstances is the
skill to avoid the hazards that may arise by predicting them in
the initial stage. The CE (Customer Engineering) Department
of Semiconductor Company in charge of customer support
and training of customer support engineers periodically
implements the "Work Leader Training" developed by
Semiconductor Equipment Association of Japan (SEAJ) for
development of this skill. Participants of this training
attends refresher training repeatedly to refine this skill andenhance the ability to accomplish their work more safely.

Evacuation drill in Tsuchiura Plant

Emergency scenario training
Each section conducts emergency scenario training forsplash prevention, recovery and cleaning with the scenario
of leakage of hazardous chemicals. Training plan issubmitted to the person responsible for environmental
management in the beginning of each fiscal year andreport is submitted after the training. In fiscal 2019,"Training for Splash Prevention of Chemical Cleaners" wasconducted by nine sections respectively in Hachioji Plant.
In Tsuchiura Plant, this training was jointly conducted by all
sections with the participation of 121 employees.

■ Disaster Prevention and
Mitigation, Emergency Aid
Evacuation drill for all sections
Evacuation drill is annually conducted based on an
emergency scenario. In fiscal 2019, Hachioji Plant
conducted a drill for all sections based on a fire scenario
and Tsuchiura Plant conducted a drill with an earthquake
scenario for all sections. With the objective of ensuring
prompt assembly, target time is set for the time from thestart of evacuation to the report to the head of headquarters
to call for quick action and cooperation of employees.

Self-defense fire brigade
Each plant has its own fire brigade and conducts regular training
once or twice a month in accordance with an annual plan.
Digital convenience radio are provided to the fire brigades toenable efficient fire fighting through appropriate
communication in case of emergency.

Tsuchiura Plant emergency scenario training

Emergency life-saving

Evacuation drill in Hachioji Plant

26

CSR REPORT 2020

Each plant sends a few employees to emergency life-saving
training every year so that multiple personnel who haveattended the training can be assigned in each workplace.
In fiscal 2019, three employees from Hachioji Plant
attended the advanced first aid seminar and three
employees from Tsuchiura Plant attended the general firstaid seminar.
AEDs are installed in Hachioji Plant and Tsuchiura Plant aswell as Nagoya Office and Osaka Office, which are larger
than the other offices. As for Hachioji Plant, which is a large
plant, an AED and a stretcher are installed in each of theeight buildings. In addition, the Plant is equipped withdrinking water vending machines that operate even in theevent of a disaster and waste bins storing portable toilets
and generators. In this way, measures are taken to enhancedisaster responsiveness and ensure emergency lifesaving.

Relationship with Employees

Traffic safety in commuting and business trips
Each plant annually holds a seminar on traffic regulations
and traffic safety, by inviting instructors from the local police
station. Employees authorized to drive company cars andthose who have received a parking permit from the plantmust attend the seminar. In fiscal 2019, 177 employees
attended the seminar in Hachioji Plant and 306 employees
in Tsuchiura Plant. The attendees of the seminar in Hachioji
Plant were limited because of the COVID-19 pandemic, andit was decided to hold another seminar for those who wereunable to attend in the next year or later.

Hachioji Plant
Safe Driving Seminar

Tsuchiura Plant
Safe Driving Seminar

Initiatives for Health of
Employees and their Families
For people to work lively, demonstrating their abilities tothe full, it is important for them and their family members tostay physically and mentally healthy. To promote the healthof employees and their families, the Company implements
initiatives to create comfortable workplaces, such as strict
control of working hours to avoid overworking.

■ Measures to Reduce Total Working Hours
The prescribed working hours at Tokyo Seimitsu in fiscal
2019 are 1794.1 hours (with 128 non work days a year infiscal 2019), approximately 9.4% lower than the prescribedworking hours in fiscal 2019* reported in the "2019Comprehensive Survey on Working Hours."
To control working hours, an entry/exit system using IC
cards that can also be used as employee identification
documents is installed at the gate of Hachioji and Tsuchiura
Plants. This system is used to compare the arrival time andleaving time declared by employees and the gate entry timeand exit time. For the employees working from home, time
to log in and log out the server as well as log-ins on holidays
are monitored to capture the actual work status. It is
ensured that employees who have worked on holidays takesubstitute days off. On the other hand, as a concrete step
to reduce working hours, every Wednesday and bonus
payment days (two days a year) are designated as the day
to leave work on time. Also, by encouraging all employees
to take 100% of annual vacation days and fully utilize thelong leave system and by monitoring their leave-taking
status, the legal obligation to ensure that employees take atleast five annual vacation days was 100% achieved and theannual leave-taking rate was increased. Time managementby managers has been integrated in the operations. As aresult of these efforts, overtime work has decreased (2.3%
reduction from the previous fiscal year).
We will continuously and actively work to reduce annual
working hours and to encourage employees to take vacations.
* The prescribed working hours in fiscal 2019 reported in the Institute ofLabour Administration Report No.3980, "2019 Comprehensive Survey on
Working Hours," are 1903 hours 15 minutes with 121.9 holidays a year.

■ Health Company Declaration■ Health Checkups, Stress Level Checks

Needless to say, employees' well-being is a cornerstoneof the long-term stable management of a company. The
Company has been making effort to promote the healthof employees by implementing health checkup and othermeasures. Considering the growing momentum forpromoting "health management" and the beginning of the"health company declaration" campaign as a social
mechanism, it was decided to step up the effort andtackle "health management" as a company-wide effort.
Thus, the Company made the "Health Company
Declaration". As an awareness activity was implemented
in the Company, focusing on monthly themes related tohealth (exercise, diet, sleep, disease prevention, etc.),
employees became more health-conscious. As a result, inAugust this year, theCompany received thesilver certificate of"Excellent HealthCompany" from the
National Federation of
Health insuranceSocieties (Kenporen) inTokyo. We will strive tofurther improveourselves as a "healthcompany" toward thenext step.

Every year, employees can get their health checked througha variety of health checkups including annual medical
checkups, complete physical checkups (for employees age
40 or above), specific health checkups, gynecologicalexaminations and special medical examinations. Those who
had an abnormal finding are recommended to get reexamined or receive specific health guidance. With regard
to stress level checks, more than 99% of the employees
take the test. It is well-accepted as an opportunity for themto realize the signs of their mental issues.
The result is shared by the Risk Management Committee
and the Safety and Health Committee, which are working
on the improvement of workplace environment.

Certification No. as a health andproductivity management organization:
Silver certificate No. 1233

■ Combatting the Risk of Infection
So far, employees had got an influenza vaccine on their own,
but since the last fiscal year, they have been able to get
vaccinated within the working hour in Hachioji Plant andHead Office. This has significantly increased the number ofvaccinated employees and helped to prevent thetransmission of influenza. In this fiscal year, preparations
were made to conduct vaccination also in Tsuchiura Plant.
With regard to preventive measures for COVID-19, based on
the guidelines of the Ministry of Health, Labour and Welfare
and considering the requirements of corporate social
responsibility, measures were implemented under theleadership of the top management.
We instituted it a rule to check the temperature of employees
and visitors before the entry, required them to comply withcoughing etiquette, and placed sanitizers and thermometers

CSR REPORT 202027

at multiple locations. During the period when masks were in
short supply, the Company distributed masks. Also, efforts
were made to avoid closed spaces, crowded places andclose-contact settings, implement web meetings instead ofin-person meetings, refrain from business trips andimplement working from home to prevent transmission.

Human Resource Development
Drawing on the strength and capabilities of employees
through education and training allows each employee torealize the growth of themselves and enhance motivation.
As they feel the sense of fulfillment from work anddemonstrate their capabilities to the full, they can achieveself-realization at work, which will improve the company
performance.
Human resource development of Tokyo Seimitsu is aimed
at building win-win relationships with employees so that
the Company can achieve sustainable growth with them.

Tokyo Seimitsu has a variety of training systems for
employees to develop their capabilities and these systems
are incorporated into the human resources development
scheme. "Level-specific training" for employees at different
career levels, "common training" for learning basic
business skills and "section-specific training" for acquiring
specialized knowledge according to the work of eachsection are implemented.
We have introduced an e-learning system and also
encourage employees to actively attend seminars outside
the company. A full program is in place to enable selfdevelopment for each employee.
Total hours of training attendance in fiscal 2019 was
12,538.4 hours, which slightly increased from the previous
fiscal year partly due to the increase in the number of
employees to be trained.
Due to the growing impact of the global spread of
COVID-19, some training programs had to be postponed orredesigned. The "labour management training" and "career
training for women", which were scheduled in February andMarch as with the previous years, were postponed.
Trainingtime

Logical thinking training
New employee training
Training for Managers
Level-specific training (managers)
Level-specific training (chiefs)
Level-specific training (assistant chiefs)

Total

1, 9369, 177
872
168
154
231
12, 538■ Initiatives for Self-development
As a means of self-development, employees areencouraged to take correspondence education courses.
The Company reimburses 80% of the training fee for theemployees who have completed the course within theprescribed period. The number of attendees is rising every
year. With the addition of new courses on work stylereform, which is a recent topic, and improvement of work
efficiency, the number of available courses has increased
1.3 times this year from the previous year.

CSR REPORT 2020

Tokyo Seimitsu has a variety of award systems to improvethe motivation of employees. In the improvement
suggestion award system, excellent suggestions withingenuity and innovative ideas for operational
improvement, quality and performance improvement,material cost reduction, safety and environment
improvement, office work improvement, etc. are awarded
at the morning meeting for all employees in the beginningof the fiscal year in April. In the technology award system,
employees who have achieved technological results
contributing to the improvement of corporate performance
are awarded to encourage the success of technology
development projects.
Also, employees are encouraged to contribute ideas of
new products in any category that are likely to emerge infuture society by thinking how society will change in the
future and freely generating ideas, and excellent ideas areawarded.

Initiatives for Diversity in Work
Styles and Human Resources■ Training Record

28■ Award System

We consider that developing an environment and schemes
accommodating the lifestyles and values of different
people by anticipating the changes in the times and social
environment will allow those people to inspire each otherwith diverse viewpoints and ideas and create new values,
enabling us to achieve synergy effects beyond the sum of
individual abilities. As a first step to this end, our effort isfocused on diversity, such as promoting the employmentof women and the disability and improvement of work-lifebalance, to create rewarding workplaces where employees
can be themselves at work.

■ Promotion of Active Social
Participation by Women
To breakthrough the current situation where the target ofthe percentage of female applicants for new graduate
recruitment remains unachieved, in fiscal 2019, we madean effort to improve the media for public relations,
including creation of a pamphlet for recruitment of new
graduates in the future. With regard to mid-career
recruitment, as it was necessary to increase theproduction of semiconductor manufacturing equipment,
we urgently recruited technicians with a mechanicalbackground, but since most of the applicants were men,
percentage of women in new recruits sharply decreased.
We will continue the effort to increase the recruitment of
women by expanding the scope of their work. Also, wewill continue to focus on the efforts for promoting
women's advancement, such as career plan guidance
and flexible response to life events for female employees.
● Recruitment Status

Unit: %

TargetRatio of women inapplicants【30％】Ratio of women in
new employees【20％】As of March 2017

22.4

15.5

22.4

11.4

As of March 2018
As of March 2019
As of March 2020

22.9
22.3

11.6
6.2

Relationship with Employees● Ratio of Female Employees

Contents
Percentage of women in management

Unit: %

Fiscal Fiscal Fiscal
2017 2018 2019

1.5

1.4

1.4

Percentage of women in Board of Directors

0.0

0.0

7.7

Percentage of women in employees

15.8

17.0

16.8

Difference in average length of service
between men and women

51.8

50.5

52.6

Action Plan for Promoting Employment
and Careers of Women
Goals•1. Ensurethat women account for 30% or more of new
graduate job applicants.
2. Ensure that female regular employees account for
20% or more of the total number of employees(numbers of hired college and high school
graduates and mid-career workers combined).

Action Plan
•1. Seta policy and goals for increasing the ratios offemale job applicants and hired women.
2. Examine the possibility of assigning female
employees to divisions where no women have been
hired or assigned before, and consider assigning
female employees to divisions and jobs to which noor few women have been assigned before.
3. Explore active public relations approaches for new
graduate recruitment planning for each fiscal year.
4. Review application requirements and recruitment
standards that are difficult for women to meet (tomake the selection process just and fair for all
applicants regardless of sex).
5. Provide training aimed at encouraging female
employees to raise their awareness of careerbuilding, and ensure that superiors motivate female
subordinates.
6. Ensure that each employee creates her own careerplan in consultation with her superior and isdeveloped from a mid- and long-term perspective.
7. Raise the awareness of managers about thedevelopment of female subordinates.
8. Raise the awareness of managers about the worklife balance and diversity management.

■ Employment of the Disability
Tokyo Seimitsu is committed to creating a work
environment where people with disability can be sociallyindependent and actively play their roles. As part of such
efforts, we are upgrading facilities to make them barrierfree and exploring workplaces and jobs that people withdisabilities can be assigned to.
After studying the work and workplaces considering theindividual aptitudes of the disabilities in collaboration with
the Public Employment Security Office ("Hello Work"), preemployment internship training is provided to them incooperation with employment support centers and schools
for special needs education to help them integrate with thecompany after employment. As a new activity, when aperson with disabilities is assigned to a section, one of theemployees of the section is appointed as a supporter andregistered as Workplace Supporter for the Disability under
the scheme of Tokyo Foundation for Employment Services
and other employees of the section also attend the Course
for Development of Job Supporters for People with Mental
Disorder or Developmental Disability by Ministry of Health,Labour and Welfare so that they can improve theknowledge about supporting and communicating with thedisabled at work, thereby creating a favorable working
environment for the disability.
The employment rate of the disability as of June 1, 2020 is
1.92%, which is lower than the statutory employment rateof 2.2%. However, one outcome of our efforts was that a
special needs school graduate joined a section with noprevious experience of accepting a disabled employee.
With the administration and manufacturing departments
conducting the internship training, the efforts forrecruitment of the disability are also underway in thisfiscal year.

■ Initiatives for Work Life Balance
In order to fully support employees tasked with childcare
and nursing care of family members as well as those whoare ill or injured, Tokyo Seimitsu has unique family leavesystems that are well beyond statutory requirements.
Childcare leave can be taken until the child becomes three
years of age and the company pays 20% of the pay toemployees on childcare leave while the child is younger
than two years old.
Employees who opt to work shorter hours due to childcare
can shorten their working hours up to three hours per day
until the child graduates from middle school. This helps
them in balancing work with childcare.
Employees who handle work as well as nursing care arealso supported. They are paid 20% of the pay while on
nursing care leave, in the same manner as in childcare
leave, and they can reduce working hours by up to threehours a day. Male employees have also started to use thechildcare and nursing care leave systems.
We also have a compensation system that allows
employees a maximum of two and a half years for longterm sick or injury leave to ensure that they canconcentrate on treatment without anxiety.
Also, the Company has a system of refreshment leave for
employees with 10 or more years of service who are 50
years old or older, entitling them to take 10 annual vacation
days consecutively as a special leave. This system allows
them to take the special leave aside from the annual longpaid leave so that they can refresh themselves mentallyand physically.

■ Welfare Beneﬁts
Tokyo Seimitsu offers welfare benefits that can be used on avariety of occasions in life to improve the work life balance
for the benefit of employees and their families.
The benefits, which include provision of subsidy for use ofaccommodation facilities on vacation and discounts for useof leisure, dining and health-related facilities, can be used fora wide range of activities.

CSR REPORT 202029

Relationship with

Shareholders andInvestors

We are committed to implementing highly transparent
and proactive IR activities to promote the understandingof shareholders and investors toward Tokyo Seimitsu.

View on Information Disclosure
to Shareholders and Investors
We make efforts to enhance transparency and build longterm relationships with our shareholders and investors byproviding accurate information on our business results,financial situation, and business strategy in a timely, fair,and easy-to-understand manner.
In response to the penetration of ESG investment, which is
growing in Europe as well as in other parts of the world,
and the introduction of the Japanese version of
stewardship code, we have decided to issue the "CSR
Report" primarily for the purpose of enhancing nonfinancial information disclosure and ESG goals were
specified in the mid-term management plan starting infiscal 2018. Our future goal is to provide an "integrated
report" that explains the relationship between financial
information and non-financial information in an easy-tounderstand manner.

companies hold their shareholders' meetings". According
to the articles of incorporation, the CEO chairs theshareholders' meeting and explains the market status, theTokyo Seimitsu Group's business strategy, earnings
forecast, etc. We also have a session where we receive
opinions and questions from shareholders, which enables
direct communication between shareholders andmanagement and allows shareholders to gain a deeper
understanding of the Tokyo Seimitsu Group.
The shareholders' meeting of fiscal 2020 was held on June
22 with measures taken to prevent the spread of
COVID-19.

■ Shareholder Newsletter
We send a "shareholder newsletter" to shareholders twicea year. The latest newsletter covers the report of fiscal
2019 consolidated business results and information about
Osaka Office, which was renovated in January 2020.

Proactive IR Activities■ Shareholders' Meeting
In June every year, we hold a regular shareholders' meetingin Hachioji where our headquarters are located.
The notice of convocation is posted on the website at theearliest possible time.
Also, recently, we held our shareholders' meeting on a
day "outside the period during which many other

30

CSR REPORT 2020

https://ir.accretech.jp/en/library/business_report.html

Relationship with Shareholders and Investors■ Business Results Brieﬁng, Media Response■ IR Website for Investors

We hold a business results briefing for institutional
investors and security analysts combined with thedisclosure of second quarterly and full-year financial
results. At this briefing, the representative director explains
the consolidated business results, future outlook andbusiness strategy of the Tokyo Seimitsu Group andresponds to questions from the attendees. Also, we
respond to a cumulative number of about 200 media
interview requests in a year.

An IR website for investors is included in the Company
website to support provision of information to shareholders
and investors. The website enhances the timeliness of
information by using the automatic linkage feature withtimely disclosure information. It has also adopted a bulk
download feature for the latest IR materials, highlighting ofbusiness performance and smartphone-friendly layout tofacilitate provision of information to shareholders andinvestors.

■ Brieﬁng for Individual Investors
We also hold a briefing for individual investors. In fiscal
2019, a web briefing was held in March 2020. The CEO
explained the profile, history, content and strength of eachbusiness, mid-term target, CSR policy and shareholder
return of the Group. Many individual investors attended thebriefing and an active Q&A session was conducted.

■ Information Disclosure
Tokyo Seimitsu is listed on the first section of the Tokyo
Stock Exchange. According to the law and the regulationsof the Stock Exchange, the following information isdisclosed on TDnet (Japan Exchange Group Timely
Disclosure network), EDINET (Electronic Disclosure forInvestor's NETwork based on Financial Instruments andExchange Act) and the IR website. (Those with * areavailable in English.)• Information of consolidated financial statement(financial results summary, summary presentation, etc.)*

https://ir.accretech.jp/en/index.html• Securities Report*, Quarterly Report, Extraordinary Report,
Confirmation• Notice of Convocation for Shareholders' Meeting*, Internet
Disclosure Information for Notice of Convocation, Resolution
Notice*• Corporate governance report• Internal control report• Notice of independent officers• Electronic public notice• Articles of Incorporation*• Other information concerning the business, operation andperformance of the Company that may critically influence theinvestment decision*

CSR REPORT 202031

Relationship with

the Global
Environment

We make concerted efforts to reduce the environmental impactof the entire value chain, including the life cycle of our products,
and maintain a sustainable society and the global environment.

Basic View on the Environment■ Basic Environmental Philosophy
Based on the concept of "Manufacturing is possible only
when the global environment is conserved", we formulated
the "Basic Environmental Philosophy" in 1997. The"Company Environmental Policy" reflects this basic
philosophy, and the "Environmental Policy" defines theactions that all employees are required to take in theirbusiness activities. We conduct all business activities
based on this philosophy and policy.

Periodical internal environmental audits are conducted
twice a year to check the implementation of action asprescribed in the environmental management manual. An
audit team of two or three members led by the lead auditor
conducts the audit based on a checklist accumulating thefindings in each year. The auditors annually renew theirinternal qualifications by taking an examination. The lead
auditor, who is selected among the auditors with sufficientexperience and capabilities and appointed by thechairperson of the Environmental Management Committee,
leads the audit team, supervising the other members.

Basic Environmental Philosophy

Environmental Policy

Recognizing environmental conservation as a important
theme, Tokyo Seimitsu makes environmental conservation an integral element of all product development,
design, manufacturing and service activities.

1. We will resolutely drive environmental conservation
activities by organizing an environmental management structure having "the Environmental Management Committee" as the top, in which all managers
play the key role.
2. We will comply with environmental laws, ordinances
and agreements as well as "the Environmental
Policy" and establish voluntary goals to grapple with
pollution prevention and environmental conservation.
3. We will strive to develop and improve environmentally responsible products (products contributing toenergy and resource conservation, products that do
not use harmful substances).
4. We will establish environmental objectives for thefollowing items concerning the environmental
impacts caused by business activities and improve
environmental performance by implementing
continuous improvement and reviewing the activities by internal audit.
1) Effective use of natural resources by energy
conservation, resource conservation and reduction and recycling of wastes.
2) Proper management of harmful substances,
reduction in their use and the adoption of replacements.
3) Prevention of the global warming through theemission control of the greenhouse gas.
5. We will conduct training programs for all employees
to raise awareness of environmental protection.
Also, we will ask for the understanding and cooperation of suppliers in environmental conservation.
6. We will make efforts for environmental conservation
activities, including use of sustainable resources,
mitigation of climate changes and conservation of
biodiversity, through individual business operations,strive to achieve a better global environment andcontribute to the development of society.
7. The environmental management system applies tothe activities, products, services and environmental
conservation activities of the plants relating to thebusiness activities of Semiconductor Company andMetrology Company.
8. This environmental policy is disclosed internally andexternally.

Company Environmental Policy
In all business activities, extending from manufacturing
products such as semiconductor manufacturing equipment and precision measuring instruments through theprovision of services, everyone at Tokyo Seimitsu must
always work with the consideration for "Is this action
friendly for the earth?". The goal is to reduce our impact
on the earth's environment to the absolute minimum.

32■ Internal Environmental Audits

CSR REPORT 2020

Relationship with the Global Environment

Eco Products■ Development of Eco Products
General purpose measuring software for manual
coordinate measuring machine: XYANA Smart
As a successor to XYANA, the software for the coordinate
measuring machines of Tokyo Seimitsu, this software wasdeveloped based on the following concepts. "It enables "intuitive", "effortless", "unhesitating" and "easy"
3D coordinate measurement.
1 Elimination of paper instruction manuals by introductionof on-line documentation and on-line help
90% reduction from XYANA (former software)
2 Reduction of travels between measuring machine anddata processing system and frequency of key pressing
during operation for measurement
Operation by hand terminal, AI-based decision making,improved operability by automated judgements
3 Reduction of frequency of line of sight movement to theobject to be measured and data processing system
during operation for measurement
Measurement navigation by voice guidance
4 Reduction of measurement location errors and highly
repeatable measurement
Measurement alarm by voice guidance
1 contributes to reduction of resource consumption.
2 3 4 eliminate the measurer's stress and frustration
and reduce the manhours in operation andmanufacturing, thereby contributing to reduction ofenergy consumption in operation and manufacturing.

■ Life Cycle Assessment (LCA) in
Product Development
Being aware of our responsibilities for the environmental
impact in the entire life cycle of the products, in 2016,
Technical Working Group (Technical WG) of the CSR
Promotion Committee unified the calculation standards forconverting the environmental impact in each stage fromproduction to disposal of products to CO2 emissions (Life
Cycle Assessment: LCA*1). It is essential to assess theCO2 emissions determined by this method in productdevelopment. By performing the LCA of existing products
under production at the same time, we improve existingproducts and evaluate products under development andnew products in comparison with existing products.
*1 LCA (Life Cycle Assessment): Life cycle assessment is a method toquantitatively assess the environmental impact in each stage of theentire life cycle (procurement, manufacture, transportation, sale, use,
disposal, reuse) of a product or a service.

● Eco Products

Semiconductor Manufacturing Equipment

High-Rigidity Grinder HRG3000X

Stack Prober AltaProv

With regard to thinning of silicon wafers, in the past, we were providing
polish grinders with a finishing step where slurry containing chemicals isused for grinding. However, we have developed HRG3000X enablingslurry-free thinning by a new method. It eliminates environmental stressconcerning the purchase, storage and discharge of chemicals, as it not
only makes treatment of waste slurry unnecessary but also eliminates
the use of slurry itself.

An ordinary single prober consists of an electrical test measurement
part comprising one unit and a wafer conveyance part comprising one
unit. In contrast, AltaProv, which also has a wafer conveyance partcomprising one unit, has an electrical test measurement part comprising
12 laterally and longitudinally connected units. It is a small footprint
machine, which has achieved reduction of the maximum footprint of
single prober by about 89% (including maintenance area).

CSR REPORT 202033

from processing wherever possible. We will implement
activities to achieve the mid-term target of 5% reduction ofelectric power consumption and paper purchase per unitof production in the next five years.

Eco-factoryTokyo Seimitsu is a machinery manufacturer which also
processes precision parts in-house. More than 99% of ourenergy consumption is the electric power used in
production plants. We also use a fair amount of water for
cutting and processing. Production of products that use
water to process semiconductors is increasing and theamount of water used for inspection and adjustment offinished products and test processing is also increasing.
As such, we continue to make efforts to reduce power andwater consumption.
Since many paper drawings are used for parts processing
and assembly due to a high number of mechanical parts inequipment, as an effort for reduction of resource
consumption, we are working to reduce paper consumption
by using electronic data for processing and assembly.
In addition, we try to recycle metal scraps and waste liquid● CO2 Emissions Reduction Target :■ Activities to prevent Global Warming(towards a carbon-free society)

A major greenhouseeffect gas emitted by
Tokyo Seimitsu is CO2 equivalent of electricity purchased
to operate the Hachioji and Tsuchiura Plants. A focus isplaced on energy saving activities as a measure to prevent
global warming, such as using LEDs for lighting, installinghuman detecting sensors, installing solar panels, andreplacing air-conditioners and compressors with energysaving types according to a plan. In order to reduce CO2
emissions more effectively, we have switched to electricity
generated from renewable energy sources (low-carbon
electricity). We will do everything we can do to promote
low carbon efforts toward a carbon-free society.

Electricity and CO2

5% reduction per unit of production by fiscal 2019 as compared to power consumptionof 384.8kwh/million yen and CO2 emissions of 0.205t-CO2/million yen in fiscal 2014
Achievement Achievement Achievement Achievement Achievementfor FY2015 for FY2016 for FY2017 for FY2018 for FY2019

Power consumption (kWh/million yen)
CO2 emissions conversion (t-CO2/million yen)367. 7
0. 187416. 30. 204370. 2
0. 181335. 1
0. 163406. 6
0. 191

The target for power consumption was not achieved by fiscal 2019. The target for CO2 emissions was achieved.

● CO2 Emissions in Tokyo Seimitsu:
Achievementfor FY2015

Emissions ( t-CO2 )Achievementfor FY2016

Achievementfor FY2017

Achievementfor FY2018

Achievementfor FY2019

Forecast for10, 601 12, 176 12, 229 12, 312 11, 982

8, 190■ Eﬀorts for Resource Saving
Production of semiconductor manufacturing
equipment that uses water is increasing.
Water (pure water) is used in large quantities and the amountof wastewater is also increasing. It has long been a practicein Tokyo Seimitsu to recover part of the wastewater anduse it as raw water for producing pure water after filtering.
According to Aqueduct of World Resources Institute (WRI),

Water

FY2020

The goal by fiscal 2019 not achieved

5% reduction per unit of production by fiscal 2019 compared to 0.562kg/million yen in fiscal 2014
Achievement Achievement Achievement Achievement Achievementfor FY2015 for FY2016 for FY2017 for FY2018 for FY2019

Paper purchase conversion (kg/million yen)30, 903 29, 827 31,169 30, 802 27, 766
0. 532 0. 520 0. 460 0. 401 0. 443
A goal of 0.534 kg/million yen or below by fiscal 2019 achieved

34

CSR REPORT 2020

3.00

Usage conversion (m3/million yen)
2.50yen)
3.00
Usage conversion (m3/million

3.00
200,000
2.00
150,000
2.50
175,000
2.50
175,000
1.50
125,000
2.00
150,000
2.00
150,000
1.00
100,000
1.50
125,000
1.50
125,000
0.50
75,0001.00
100,000
1.00
100,000
0.00
50,0000.50
75,00075,000 2015 2016 2017 2018 2019 (Year)0.50
0.00
50,00050,000 2015 2016 2017 2018 2019 (Year)0.00
2015 2016 2017 2018 2019 (Year)

expand the use of electronic data in operations.
We will continue the efforts for reduction of paper usage.

● Target for Volume of Paper Purchased :Paper purchase (kg)3(m3)
Water usage
175,000(m3)200,000
Water usage

117,097 121,115 149,544 157,375 171,706
2. 01
2. 08
2. 19
2. 05
2. 74

As production of paper consumes a lot of
resources, such as wood and water,
reduction of paper usage is considered to contribute toconservation of the global environment. In each process
within the Company, efforts are underway to gradually

5,000
0
2,500
2015 2016 2017 2018 2019 2020 (Year)
2,500(Forecast)0
0 2015 2016 2017 2018 2019 2020 (Year)(Forecast)2015 2016 2017 2018 20192020 (Year)(Forecast)3

Achievement Achievement Achievement Achievement Achievementfor FY2015 for FY2016 for FY2017 for FY2018 for FY2019

Paper

8,190
8,190

10,000
5,000
7,500
7,500
2,500
5,000

200,000

5% reduction per unit of production by fiscal 2019 compared to 2.00m3/million yen in fiscal 2014

Water usage conversion (m3/million yen)

12,22912,312
2 emissions
2)
CO12,176(t-CO
11,982

12,50015,000CO 2 emissions (t-CO 2)
15,000 10,601
12,176 12,229 12,312 11,982
10,00012,50012,176 12,229 12,312 11,982
8,190
12,500 10,601
7,500
10,00010,601

the water stress of the Hachioji Plant area for manufacturingof semiconductor manufacturing equipment and the
Tsuchiura Plant area for manufacturing of measuring
instruments, is classified as Low-Medium.
As a way to reduce water usage, we are conducting
studies to reuse the wastewater from the production(m )process of pure water.
Water usage
Usage conversion (m /million yen)

● Target for Water Usage Reduction :Water usage (m3)

CO 2 emissions (t-CO 2)

15,000（kg）

32,000（kg）

Volume of paper purchased(kg/million yen)
Purchase conversion
0.600
Volume of paper purchased
Volume conversionof paper purchased(kg/million yen)
Purchase
0.500(kg/million
0.600yen)
Purchase conversion

31,000（kg）
32,0000.600
32,0000.400
30,0000.500
31,0000.500
31,0000.300
29,0000.400
30,0000.400
30,0000.200
28,0000.300
29,0000.300
29,0000.100
27,0000.200
28,0000.200
28,0000.000
26,0000.100
27,0000.100
27,000 2015 2016 2017 2018 2019 (Year)
0.000
26,0000.000
26,000 2015 2016 2017 2018 2019 (Year)2015 2016 2017 2018 2019 (Year)Relationship with the Global Environment

The Company also manufactures
HFC-based freezers used forsemiconductor manufacturing equipment.
The refrigerant gas is properly managed and the amount ofgas emitted to the atmosphere is almost zero.
Chemical substances are also used in the plants. Since
they may pollute the environment, we control themproperly in accordance with relevant laws and regulations.
To prepare for emergencies such as leak accidents,"emergency scenario training" is implemented to prevent
environmental pollution.

● Gases emitted to the Atmosphere■ Recycling of Wastes● Target for recycling of wastes:

Other gases

We try to reduce the amount of wastes, for example, byusing reusable plastic boxes instead of cardboard boxes.
All of the wastes from Hachioji Plant are recycled including
thermal recycling.

CH 4
N 2O
HFC
PFC

SF 6

Fiscal
2015
0. 0
0. 0
0. 0
0. 0
0. 0

Fiscal
2016
0. 0
0. 0
2. 6
0. 0
0. 0

Fiscal
2017
0. 0
0. 0
0. 0
0. 0
0. 0

Unit: t-CO2

Fiscal
2018
0. 0
0. 0
9. 4
0. 0
0. 0

Fiscal
2019
0. 0
0. 0
2. 0
0. 0
0. 0

Maintain recycling rate at 95% or higher by fiscal 2019
Achievement Achievement Achievement Achievement Achievementfor FY2015 for FY2016 for FY2017 for FY2018 for FY2019

Amount of recycled waste ( t )Recycling rate (%)

939 1,117 818 1, 001 893
96. 3 96. 2 98. 3 99. 1 98. 6

The target by 2019 (95% or higher) has been achieved.

Chemical Substances Control
In regard to chemical substances we use and thosecontained in parts, we are committed to minimizing impact
on the environment and people by not only observing laws
and regulations in Japan and in export destinations but
also controlling non-regulated chemical substances basedon voluntary standards.

■ Chemical Substances Control
Based on Voluntary Standards
We apply internal company regulations which specify
substances with the potential to pollute the environment.
When these substances are used, the responsible personfor environmental control must be notified. The amount ofeach substance used, the storage location, and the
maximum storage amount are identified. SDS* andemergency tools are made available and regular
contingency drills are conducted. Also, we are examining
the replacement of harmful chemical substances (organic
solvent, etc.) with harmless or less harmful substances.
*SDS : SDS stands for "Safety Data Sheet". Information on the name of
the chemical substance, the manufacturer, handling methods, thenature of the hazard and type of toxicity, physical properties,
impact on the environment, safety measures, emergency
measures, and actions in the event of an emergency are recordedon this sheet for each chemical substance. According to the
PRTR Law, manufacturers are supposed to compile the amountof emissions of chemical substances and the amount oftransferred wastes and submit a report to the national government
via local government. It is mandatory to attach SDS to the report.

■ Control of Chemical Substances
Contained in Products
We hold explanatory meetings to request suppliers to strictly
control and report chemical substances contained in
procured parts. More than 400 suppliers have so far
attended the meetings.
Since fiscal 2016, we have been conducting an
investigation regarding the RoHS directive, the REACH
regulation, etc. using a cloud-based system with thecooperation of suppliers.
With regard to the products of Metrology Company, since
July 2017, six substances have been controlled inaccordance with the RoHS directive. All products exported
to the EU are compliant with the Directive.
An investigation has been implemented about phthalate
esters that will be added to the restricted substances in the
RoHS Directive in July 2021 to make preparations forcompliance. Semiconductor manufacturing equipment,
which is the product of Semiconductor Company, is exempt
from RoHS directive since it is categorized in Large-scalestationary industrial tools, but we are taking steps to becompliant.
We set up RoHS Analysis Room in fiscal 2018 to analyze
chemical substances contained in procured parts.
With respect to PFOA which was added to the Stockholm
Convention on Persistent Organic Pollutants in July 2020,
products of all Companies are compliant and all products
exported to the regions where this regulation is enforced arecompliant products.

■ Speciﬁed Chemical Substances Control
We have submitted notification for two substances whoseamount of use exceeds the standard for the substances
specified by the PRTR Law. With regard to the chemical
substances requiring appropriate control stipulated in theEnvironmental Ordinance for Ensuring Health and Safetyof Residents in Tokyo Metropolis, five of them are used in
Hachioji Plant and we have submitted notification forthem.

CSR REPORT 2020

35

Overview of Environmental
Impact● Overview of Environmental Impact in Fiscal 2019

Environmental Impact of Tokyo Seimitsu
INPUT

ECO FACTORY

EnergyDevelopment
and Design

Scope1+Scope2

Total energy
consumption

248,272 GJ

Scope2• Paperless work
• Item reduction

OUTPUT

CO2
Total greenhouse gas(GHG) emissions

11,982 t-CO

Electricity

11,910 t-CO2
21 t-CO2
51 t-CO2

Gas

247,160 GJ

Electricity
Scope1Gas（LPG）
Volatile oil
Kerosene
Light oil

352 GJ
654 GJ
8 GJ
98 GJ

Fuel

Material andProcurement• Green procurement• Packaging reduction

Total water
consumption

171,706 m

City watersupply26,062 m

Industrialwater

145,644 m

3

3

3(groundwater)

Plant effluent（General sewage）

171,706 m• Flowline improvement• Automated inspection• Reduction of power
consumption

Packaging andDistribution• Reuse of packaging• Planned operation• Prohibit truck "idling"BOD
6 kg or lower
Nitrogen content
1.8 kg or lower
Iodine consumption 0.83 kg or lower
Suspended solids
6 kg or lower
n-Hexane extract content 0.3 kg or lower
Phosphorus content 0.13 kg or lower

Wastematerials

905 t

Final disposal amount
Recycling
rate:

98.6

ECO PRODUCTS
Transport andDeliveryOperation of
products

After-sales
services• Transport andDelivery equipment• Transport energy• Electric power• Water • Air• Clean room

• Operating rate
• Equipment
service life

Disposal• Environmental
pollutants

Environmental Impact of Customers
36

CSR REPORT 20203

Confirmed to meet the standard
for industrial effluent.
The values are as follows:

Manufacturing

Water

2

%

12t

Relationship with the Global Environment

History of Environmental
Conservation Activities

2006 Jan Started the Hexavalent Chrome-free Project.
Apr Completed the removal of all halon fire
extinguishers.
Jun Started the "Cool Biz" project.
Oct Started production using lead-free solder for new
products (Semiconductor Company).
the Japan Machinery Federation2007 Feb Received
President's Award for our laser dicing machines,

under the award system for superior energy-saving
products.

Solar panels at Hachioji Plant No. 6

a letter of commendation from the Fire
2008 Mar Received
Chief.
the "approval of the excellent fire2009 Nov Renewed
prevention property" for Hachioji Plant.

1996 Jul

Started education and training on environmental
conservation activities.

Sep Established the Environmental Committee.
environmental impact investigations in
1997 Feb Started
Hachioji and Tsuchiura Plants as well as in thedivisions.

May Created the Environmental Management Manual.
ISO14001 certification collectively by
1998 Mar Acquired
Hachioji and Tsuchiura Plants.
Sep Formulated the "Motto (Action Guideline)"
the waste material incinerator and later1999 Nov Stopped
removed it (Semiconductor Company).
the operation of waste water treatment
2000 Mar Started
facilities such as CMP systems and back grinders(Semiconductor Company).

May Removed the heating facilities using heavy oil
boilers and underground heavy oil tanks(Semiconductor Company).

2001 Apr Renewed ISO14001 certification.

an award from the Tokyo Metropolitan
2010 Aug Received
Government for the "Road Adopting System"

2011 Jun Constructed Hachioji Plant No. 5.
Nov Revised the environmental policy.

2012 Jul

Launched the cutting and grinding tool business.

ISO14001 certification adding cutting and2013 Mar Acquired
grinding tools to the scope of application.
and started operation of solar panels at
2015 Jun Installed
Hachioji Plant No. 5.

2016 May Constructed Hachioji Plant No. 6.
Dec Installed and started operation of solar panels at
Hachioji Plant No. 6.

2017 Jun Acquired ISO14001:2015 certification.
part of the electric power used in Hachioji2020 Mar Switched
Plant to low-carbon power.
Apr Constructed Tsuchiura Plant MI Building.
Jun Installed solar panels at Tsuchiura Plant MI Building.

May Opened the new main building at Hachioji Plant.
Scrapped privately owned incinerators (Metrology
2002 Mar Company).
"ACCRETECH Green Procurement
2003 Mar Established
Guideline".
air conditioners from heavy oil boilers to2004 Feb Updated
electrically powered devices (Metrology Company).
Aug Established "the ACCRETECH Group Code of Conduct".
Sep Issued the Environmental Report.

Tsuchiura Plant MI Building

2005 Feb Closed specified facilities of Tsuchiura Plant.
Apr Received an award from the Ibaraki Labour Bureau
for our commitment to office safety.
Apr Started operation at the new plants in Hachioji andTsuchiura.
Jun Obtained ISO 14001 certification (2004 version).
Jul

Held supplier briefings on hexavalent chrome-freematerials.

Solar panels of Tsuchiura Plant MI Building

CSR REPORT 2020

37

Relationship withSociety

In addition to contributing to society through business activities, in order to create soundand sustainable society as a corporate citizen, we identify issues and needs of each region
through communication with society and drive social contribution activities to address
such issues and needs.

Relationship with Local Society■ Activities in the Hachioji Area
Cooperation with the Local Government
Hachioji Plant is a member of the Hachioji Branch of theTokyo Federation of Labour Standards Associations.
In collaboration with the member companies operating
within the jurisdiction of Hachioji Labour Standards
Office, the Branch conducts training on compliance withlabour-related laws and regulations, prevention ofindustrial accidents and implementation of activities forworkers' health maintenance and promotion as well as
seminars on occupational safety and health with theobjective of creating "safe, healthy and comfortableworkplaces".
Many employees of Hachioji Plant attend the seminars
every year.
Also, the Company belongs to the General Affairs andPublic Relations Department of the Branch and plays arole of strengthening the alliance among the member
companies by issuing newsletters periodically.

community and has been sending a lecturer from the firstseries in 2016.
In January 2020, Plant Manager Mitsuhashi of Hachioji
Plant gave a lecture entitled "Current Status of State-ofthe-Art Semiconductor Manufacturing Equipment:
Supplied from Hachioji to the World". He talked about thefact that Tokyo Seimitsu supplies equipment of state-ofthe-art technology from Hachioji to the world, thetechnology of semiconductor manufacturing equipment
derived from the world's top-level precision measurement
technology and the equipment of Tokyo Seimitsu is used
for manufacturing smartphones, cars, rockets and otherfamiliar products as well as hi-tech products.
The students commented that they were surprised tohear that Tokyo Seimitsu is deeply involved in thedevelopment of Japanese industry.

Hachioji Branch of Tokyo Federation of Labour Standards Associations
https://www.toukiren.or.jp/shibu/hachiouji/Also, as a vice chairperson of the Hachioji blanch ofJapan Association Safety of Hazardous Materials and Fire
Prevention Study Council, which collaborate with Hachioji
City in fire prevention activities, they are involved in thefire prevention administration of the local community.
Special class for students
Hachioji City has a concentration of companies handlingfundamental technologies with advanced technical skills,
companies with excellent product development capability
as well as research laboratories and colleges, and one of
the characteristics of the city is that many of them are
related to fields of high technology, such as "electronics
and devices" and "electrical machinery".
Since fiscal 2016, Nihon Kogakuin College Hachioji
Campus has been annually holding a lecture series
entitled "Learning the Way of Manufacturing in Hachioji"
in partnership with the local community. For this lecture
series, industry leaders mostly from manufacturers in
Hachioji are invited to give a lecture on topics including
the attractiveness of manufacturing, mindset required foran full-fledged adult in society and attractiveness ofHachioji City based on their experience.
Students attending the lecture are expected to make useof the lecture for subsequent classes, internship training,job hunting and career design, aiming to achieve their
dream and target.
Tokyo Seimitsu headquartered in Hachioji City has agreed
with the purpose of educating the students in the local

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CSR REPORT 2020

Hachioji Plant Manager Mitsuhashi giving a lecture

Participation in the Adopt-a-Road Program
Since 2004, Hachioji Plant has been involved in the
Adopt-a-Road Program launched by Hachioji City. We
have adopted a rotary road on the east side of JR KitaHachioji Station and are making efforts to keep the roadclean by trimming the plants and weeding at regularintervals in addition to picking trash on a daily basis. In
fiscal 2019, cumulative number of 151 employees wereparticipated this activity.
This activity is part of the curriculum of one-monthorientation training for new employees, helping them raise
the awareness of the importance of contributing to the
local community.

Hachioji City Government Website (on the Road Adopting System)
https://www.city.hachioji.tokyo.jp/kurashi/life/001/001/016/p006890.html

Relationship with Society

VOICE

Comment from an Employee
Who Participated in the
Activities
Administration Company
Human Resources Dept.

Akiko SubeBy participating in the Road Adopting System, I didn't justclean the road, but I realized that I am "a member of thecommunity" and felt "a sense of accomplishment andrefreshment by making the road clean". Kita-Hachioji
Station is used by a lot of people, as it is located in theneighborhood of companies and schools. The road may
have a lot of trash because of the crowd, but it also meansthat cleaning the road makes a lot of people feel refreshed.
Through the activity, I found small cigarette butts, which I
normally do not notice because the area is so familiar tome, and some bicycles parked in way that would obstructpedestrians. I also realized that the environment is kept
clean because when somebody has left trash, somebody
else picks it up. The activity has made me feel more
attached to the station when I use the station. Due to the
COVID-19 pandemics since the end of fiscal year,
systematic activities have been suspended, but we canstill act individually to keep the road clean. Moving
forward, I would like to continue using Kita-Hachioji
Station pleasantly with the community people.

Local cleanup activities
Tsuchiura Plant performs cleaning of the area around
Nakanuki Park once a week together with the neighboring
companies of the Park.
From 2006, every Monday, different sections of Tsuchiura
Plant take turns to clean the park on their own. In fiscal
2019, the cleaning was carried out 50 times with theparticipation of a cumulative number of 100 employees.
This cleaning activity, which has been implemented overmany years, has raised the awareness of local people. In
the past, the roads near the Park were filled with trash,
but significant improvement has been observed in recent
years. However, littering from trucks illegally parked atnight has not been totally eliminated yet. We will continue
this activity, hoping that it will help in keeping theenvironment around the park clean and improving social
manners.

Local Cleanup Activities■ Activities in the Tsuchiura Area
Eco-partner Agreement
Tsuchiura City is implementing the
Tsuchiura Eco-Partner Program inwhich the City and business
operators form a close partnershipto address the issues of global
w a r m i n g , e n e rg y a n d w a s t e s ,thereby creating a low-carbon andrecycling-oriented society throughconcerted efforts with the objectiveof passing down a better environment to children of future
generations. Agreeing to this idea, we concluded apartnership agreement with Tsuchiura City at the end of
March 2016. In April every year, we submit a report of theactivities in the previous fiscal year and an activity planfor the year, which are uploaded to the website ofTsuchiura City for information disclosure.
Reference: Tsuchiura City Government's Website
Eco-partner Agreement
https://www.city.tsuchiura.lg.jp/page/page004517.html

Protection of Kasumigaura
In the neighborhood of Tsuchiura Plant, there is a famoussightseeing spot of Ibaraki Prefecture called "Kasumigaura".
In order to keep this lake clean and beautiful, Tsuchiura City
requires neighboring companies to submit a "environmental
pollution control plan". As a company operating in TsuchiuraCity, we submit our plan to the city government andpromote activities of conservation of lake water quality
based on the plan.

VOICE

Comment from an Employee
Who Participated in the
Activities
Metrology Company Tsuchiura
General Affairs Section

Katsutoshi Shingai
Nakanuki Park is located right in front of Tsuchiura Plant.
Beautifully colored with cherry blossoms in spring andyellow gingko leaves in autumn, the park is very familiar tome as I can enjoy the scenery through the window of myworkplace. However, because it faces a corner of theindustrial estate with a heavy traffic of trucks, a lot of
waste illegally dumped on the side of the road around thepark ruined the scenery. I think you call it a broken window
theory. As someone throws waste, other people also throw
waste in the same place. The park looked terrible becauseof the accumulation of waste. But, since we started taking
turns to clean the park every week, the amount of waste
has considerably decreased. However, illegal dumping
cannot be eliminated. If we pretend not to see it, the park
will soon return to the same terrible situation as in thepast. So, I think all employees are aware that this weekly
cleaning is a very important activity.
I would like to continue being part of this activity to protect
the beautiful park so I can feel relaxed whenever I look at
the park from my workplace.

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39

Relationship with Industry
GroupsWe not only mind our business alone but share our knowhow and information with other industry groups to help
the industry prosper further.

■ SEAJ (Semiconductor Equipment
Association of Japan)
SEAJ is engaged in a wide range of activities, fromstatistical surveys and researches on the industry's issues
and new technologies to seminars, workshops, andpromotion of standardization, to promote the sounddevelopment of the semiconductor manufacturing
equipment industry and other related industries. Several
employees from our company participate in theorganization and cooperate in the development of thesemiconductor manufacturing equipment industry.

■ Participation in the ISO
Technical Committee
The ISO (International Organization for Standardization)
has been organized to ensure that products are handledbased on the same standards and rules to facilitate
international trades. At present, over 20,000 international
standards have been established. Its Secretariat is
located in Geneva, Switzerland and there are more than
300 Technical Committees to deal with different
categories of products. TC213, which is one of theTechnical Committees to deliberate and establish
standards for "geometrical product specifications", isrelevant to the Company. In this committee, rules
pertaining to length standards, description method ofdrawing dimensions, specification standards of measuring
instruments, inspection methods, etc. are deliberated byseveral working groups (WGs).
Two of our employees are appointed as committee
members representing Japan. They currently participate
in the working groups for standards of coordinate
measuring machines, roundness measuring machines,
surface texture measuring machines/filters andmeasurement uncertainty. TC213 holds regular sessions
twice a year in different venues in different countries todiscuss new standards and revision of existing standards.
In particular, with respect to the discussion of thestandards of roundness measuring machines, they act asproject leaders to lead the discussion, driving the effort toachieve the adoption of the standard proposed by Japanas an international standard.

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CSR REPORT 2020

■ Japan Society for Precision
Engineering
The Japan Society for Precision Engineering is anacademic society that is significantly contributing to thedevelopment of industry and improvement of production
technology. It holds academic lectures, seminars andsymposiums, organizes plant tours and issues journals.
Tokyo Seimitsu participates in the Expert Committee forIntelligent Nano-Measurement*1 and the Expert
Committee for Convergence Engineering*2 and serves as
an accounting auditor in the Expert Committee forIntelligent Nano-Measurement. For the 2019 Spring
Convention, we participated as a councilor.
The Convention in fiscal 2020 was postponed because of
the COVID-19 pandemic, but an employee of the Company,
who was appointed as the chair of the "Corporate Member
Association", participates in the examination of papers forcommendation.
*1 Expert Committee for Intelligent Nano-Measurement: Expert
committee concerning technological development including
intelligent data processing, traceability and standardization.
*2 Expert Committee for Convergence Engineering: Expert committee
concerning new design and production methods that digitize object
information obtained by 3D shape scanning technology (industrial
X-ray CT and 3D surface scanner) and utilize the information on
digital engineering systems (CAD, CAM, CAE).

■ Japan Precision Measuring Instruments
Manufacturers Association
The Japan Precision Measuring Instruments Manufacturers
Association holds comprehensive trade shows related tomeasurement and metrology in general, promotes
standardization to help improvement in technology andquality, and organizes joint workshops with other groups.
Through these and other activities, it has significantly
contributed to the promotion of Japan's precision
measuring instrument industry. We actively participate inmany of its working groups and committees as well as the
management of trade shows, thus making enormous
contribution to the development of the precision measuring
instrument industry.
In fiscal 2018, we planned and organized a seminar under
CMM Working Group at JIMTOF 2018. From fiscal 2020,
CEO Yoshida of the Company is engaged in this duty as
the president of the Society. The next JIMTOF, which is
JIMTOF2020, will be held on line because of the impact
of COVID-19 pandemic. We will participate in it tocontribute to the industrial development in this field. We
are also engaged in editing of the JIS guidebook under
CMM Working Group *3.
*3 CMM (Coordinate Measuring Machine) is a measuring machine
capable of 3D measurement of solid objects.

Group Companies 1

Companies of the Tokyo Seimitsu Group are shown below.

Tosei Engineering Corp.
Company Overview■Date of establishment : April 15, 1969
■Headquarters : 4-6 Higashinakanuki-machi,
Tsuchiura-shi, Ibaraki■President : Katsuhiro Tago
■Sales : 15,413 million yen (fiscal 2019)■Employees : 580 (as of March 31, 2020)(Note) Personnel seconded from the Company to othercompanies are excluded, and personnel seconded fromother companies to the Company are included.
■URL : https://www.toseieng.co.jp/component/en/■Hubs : 4 plants and 13 service bases in Japan and 10
bases overseas

For the purpose of thoroughly implementing andcommunicating the "ACCRETECH Code of Conduct" andother internal regulations and rules, we have set up asystem enabling employees to always view and checkthem on the internal network and are making efforts toimprove the understanding of employees.

CSR Activity Example 2•Promotion of diversity and inclusion
The global meeting, which is usually held in Japan, washeld in Thailand and China this year with the objective of"Improvement of Global Engagement". The meeting was
conducted with English as the common language. With
regard to issues raised by each country, all participants
gave advice and held discussions from their own
viewpoints and experience. There was also an active
exchange of information about market trends in relation to
the issues. It turned out that some issues of a country
have already been solved by another country. The
participants confirmed the intent to build a structure to
resolve the issues that cannot be resolved by a single
office or plant through mutual cooperation.
A structure for global cooperation is now in place withmonthly web-based discussions conducted in each area
for speedy resolution of issues and continuous
improvement.

CSR Activity Example 3•Creation of safe and secure
workplace environment

Business Overview
The company was established in 1969 as a group companyof Tokyo Seimitsu responsible for servicing of the productsof Tokyo Seimitsu and development and manufacture ofautomated and labour-saving measuring equipment. Since
the establishment, based on the concept that "Nothing canbe created without means of measurement", we have beencommitted to accumulating technological expertise throughprovision of precision measuring instruments to the field of
precision processing and servicing of such measuring
instruments, thereby developing the business. Thec omp a n y ha s b e e n e x clu si v e l y de v e loping a nd
manufacturing automatic measuring instruments for
production lines of automobiles, bearings, electric
appliances and electronic products. With its precision
technology as the foundation, it advanced into the field ofsemiconductor manufacturing, which is now one of its
major business areas.
Since its establishment, with "Customer First" as ourmotto, we have been making an all-out effort to provide
original technology and services. Going forward, under
the slogan of "All For One, All For Customer", we willcontinue our attempts to be the "only one" company able
to promptly respond to all kinds of customer needs.

CSR Activity Example 1

The Safety and Health Committee at each office holds a
meeting every month.
In Kandatsu Plant, Safe Operation Subcommittee, Fire
Prevention Subcommittee, Safe Driving Subcommittee andEnvironmental Subcommittee have been organized. They
are striving to ensure employee safety and security at workand maintain comfortable workplace environment, going
beyond the compliance of Industrial Safety and Health Act
and other relevant laws and regulations. As part of thecommittee activities, committee members periodicallyinspect inside the plant, aiming to achieve zero industrial
accident. This is also linked to the "5S3T" activities. Risk
assessment is performed at the same time to raise the"safety" consciousness of employees and share therecognition of risks in the workplace with all the employees
within the workplace.
Nagoya Plant is focused on education and training andlicense acquisition in addition to safety patrol and in-housesafety convention, thereby improving the competence of
the whole plant and ensuring compliance for operations
within the premises. To enable employees to immediately
utilize the BCP (business continuity plan) in case of
emergency, communication structure for disaster
information has been strengthened. The steady efforts in
the industrial safety and health activities are highly
appreciated by customer, resulting in an effort award forsafety from them.

•Compliance and Ensuring Communication ofInternal Regulations"To become a company that can gain trust from all
stakeholders, Tosei Engineering seeks to enhance
corporate governance and compliance, and ensure healthy
and transparent management." "Right decision making willachieve sustainable growth and increase corporate value ina medium to long term."

CSR REPORT 2020

41

Group Companies 2

Companies of the Tokyo Seimitsu Group are shown below.

Tosei Systems Co.,Ltd.

Tosei Box Corp.

Company Overview

Company Overview■Date of establishment : October 1, 1985
■Headquarters : Within Tokyo Seimitsu Plant, 2968-2,
Ishikawa-machi, Hachioji-shi, Tokyo■President : Koichi Kawamura■Sales : 2,088 million yen (fiscal 2019)■Employees : 128 (as of March 31, 2020)■URL : https://toseisystems.co.jp/■Operations : 2 in Japan, 0 overseas■Date of establishment : September 1, 2001
■Headquarters : 2968-2 Ishikawa-machi,
Hachioji-shi, Tokyo■President : Hideaki Takano■Sales : 945 million yen (fiscal 2019)■Employees : 39 (as of March 31, 2020)■URL : http://www.toseibox.com/■Operations : 4 in Japan, O overseas

Business Overview

Business Overview

Tosei Systems is a 100%-owned subsidiary that supports
product development of Tokyo Seimitsu in the field ofsoftware.
The Company is responsible for a variety of software
businesses for Tokyo Seimitsu, such as development of"Windows applications" attached to equipment including"embedded software" for control of semiconductor
manufacturing equipment and measuring instruments andfor measurement by measuring instruments, development
and operation support of the ERP, and creation andmaintenance of websites of group companies.
As the Company handles a wide range of software
businesses, both new graduate and mid-career people arerecruited regardless of gender or major in college, taking
their aptitude to software businesses into consideration.
New graduates are provided with three month training,which includes external training, before assignment.
In 2020, due to the impact of COVID-19 pandemic, external
training was replaced by remote training, but where
possible, all the six new employees attended the remotetraining in a conference room of the Company together sothat they could promote exchanges among them.
Since the assignment, they have been trained on the job tolearn how to use the equipment and development
environment. The OJT is still on-going.

Under the motto of “Safety, Comfort and Relief”, Tosei Box
contributes to society by providing affluent living
environment through delivery lockers that can be usedsecurely. Delivery lockers allow customers to receive
packages during absence.
The use of deliver lockers can eliminate re-deliveries during
absence and reduce the driving distance of delivery
vehicles, thereby reducing CO2 emissions and unreasonable
workload of delivery workers. As such, promotion of thewidespread use of delivery lockers is a business of social
significance, leading to environmental conservation andreduction of the workload of delivery workers.
Also, it is considered that the delivery locker is gaining
importance as a social tool under the post-COVID new
normal lifestyle to avoid face-to-face contact as apreventive measure of COVID-19.
"The company provides various types of lockers to fulfill
the customer's needs with improved security and usability,
which made of stainless steel or finished with different
colors to match the interior of the building.
Our customers prefer the non-contact IC card, thefingerprint or vein authentication system, and theautomatic open type system.
The company is committed to supplying better products
and services and promoting CSR activities in order tocontribute to future society."
Training for employees includes sharing of the social
significance of the Company business, e-learning programon the Code of Conduct and information security, and forthe purpose of awareness, harassment training is
conducted for all employees.

ISO27001 (Information Security)
With regard to the ISO27001 certification, after a part of thesections was certified in 2017, the certification has been
expanded to other sections every year.
In 2020, we passed the surveillance audit, which is
conducted once in four years, without any problems.
Aiming to achieve company-wide certification by acquisitionof the certification by the Development Group which works
in the Technology Group of Tokyo Seimitsu in 2021, working
group activities are being carried out.

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CSR REPORT 2020

Group Companies

Accretech Powertro System Co., Ltd.
Company Overview■Date of establishment : October 1, 1999
■Headquarters : 50 Osaku, Matsukawa, Furudono-machi,
Ishikawa-gun, Fukushima■President : Seiichi Suzuki■Sales : 1,974 million yen (fiscal 2019)■Employees : 128 (as of March 31, 2020)■URL : https://www.acct-powertro.jp/■Operations : 5 in Japan, O overseas

Business Overview
Utilizing its technology in power supply, the company
provides charge / discharge tes ting s y s tems andcommissioned service for evaluation of batteries that are
essential in the research, development and manufacture ofsecondary batteries, capacitors and fuel cells.

CSR (Corporate Social Responsibility) Activities•Contribution to social development as asolution partner in smart energy society
In the ever-evolving utilization of electrical energy, progressof power supply technology has helped humans to maketheir dreams come true.
A major challenge in utilizing electrical energy is "to store
the energy to make it possible to use it in the quantity
needed whenever and wherever necessary". To overcome
this challenge, efforts have been made to evolve secondary
batteries in many ways.
The Company contributes to creating an affluent society
with dreams by supporting the supply of electrical energy,
which is a critical infrastructure in today's society, with theequipment featuring high efficiency, high output and low
noise in an eco-friendly and smart way.
Utilizing the technology in power supply, we provide
charge/discharge testing systems and commissioned
service for evaluation of batteries relevant to the research,development and manufacture of secondary batteries,
capacitors and fuel cells.
As an energy solution partner of customers aspiring tocreate a smart energy society, we contribute to totalsolution of issues with our structure handling all stages fromdevelopment to after-sales service.

Energy Testing
SystemCommissioned
service for battery
evaluation

CSR REPORT 202043

ISO 26000
Correspondence Table
ISO 26000
Core Themes

In publishing the CSR Report, we summarize our CSR efforts in line with the core
themes of ISO 26000 and strive to improve these efforts and the report.

Challenges

Our Initiatives
Message•CEO'sSeimitsu's View on CSR•TokyoGroup Code of Conduct•ACCRETECH
Governance•Corporate• Corporate Governance

Governance

1. Governance• Compliance• Risk Management
Relationship with Customers• Quality Compliance and Employee Training
Relationship with Suppliers• Training for Tokyo Seimitsu Employees
Relationships with Employees• Promotion of Compliance•••

2. Due diligence
3. Human rights risk situations
4. Avoidance of complicity
Humanrights

5. Resolving grievances
6. Discrimination and vulnerable

Group Code of Conduct•ACCRETECH
with Suppliers•Relationship• Supply Chain Enhancementwith Employees•Relationships• Promotion of Compliance• Initiatives for Diversity in Work Styles andHuman Resources

7. Civil and political rights
8. Economic, social, and cultural rights
9. Fundamental principles and rights at work
10. Employment and employment relationships
11. Conditions of work and social protection
Labourpractices

12. Social dialogue
13. Health and safety at work
14. Human resource development and training at work
15. Prevention of pollution
16. Sustainable resource use

Environment

17. Mitigation of and adaptation to climate changeGroup Code of Conduct•ACCRETECH
with Customers•Relationship• Global and Attentive Support Systemwith Suppliers•Relationship• Supply Chain Enhancementwith Employees•Relationships
with Society•Relationship• Relationship with Local SocietyGroup Code of Conduct•ACCRETECH
with the Global Environment•Relationship• Basic View on the Environment• Eco Products• Eco Factory• Chemical Substances Control

Environmental preservation, biodiversity,
18. and recovery of natural habitats

19. Prevention of corruption
20. Responsible political involvement
Fair business21. Fair competition
practices

22. Promotion of social responsibility in the value chain
23. Respect for property rights

Group Code of Conduct•ACCRETECH
Governance•Corporate• Compliance• Risk Managementwith Suppliers•Relationship• Supply Chain Enhancement•Relationships with Shareholders and Investors

Fair marketing, information,

24. and contractual practices

25. Protection of health and safety of consumers
26. Sustainable consumption
ConsumerissuesConsumer services, support, resolution of

27. complaints and grievances

28. Consumer data protection and privacy
29. Access to essential services

Group Code of Conduct•ACCRETECH
Governance•Corporate
with Customers•Relationship• Initiatives for Customer Satisfaction
with Suppliers•Relationship• Supply Chain Enhancementwith the Global Environment•Relationship• Eco Products

30. Education and raising awareness
31. Participation in the community
32. Education and culture
33. Job creation and skill development
Community
34. Technology development and accessdevelopment

35. Creation of wealth and income
36. Health
37. Social investment

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CSR REPORT 2020

Group Code of Conduct•ACCRETECH
with Employees•Relationships• Initiatives for Health of Employees and•their Families• Human Resource Development
Relationship with Society• Relationship with Local Society•Relationship with Industry Groups

RelatedSDGs

CSR REPORT 2020

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CSR REPORT 2020

Tokyo Seimitsu Co., Ltd.
CSR Promotion Committee

Hachioji and Tsuchiura Plants obtained ISO 9001 and ISO 14001
certifications simultaneously.

2968-2, Ishikawa-machi, Hachioji-shi, Tokyo 192-8515, Japan
Phone: +81 (0)42-642-1701 Fax: +81(0)42-642-1798
URL: http://www.accretech.jp
Issued: October 2020

A - 016 - E - 2010