Tokyo Seimitsu

CSR Report 2021

Tokyo Seimitsu Company Profile
Corporate Philosophy:

We create the world's No. 1 products and grow together to a higher
level by integrating excellent technology, wisdom,
and information from around the world.
MOTTO:

WIN-WIN RELATIONSHIPS CREATE THE
WORLD’S NO. 1 PRODUCTS!
Corporate Brand:

A fusion of "Accrete" and "Technology," signifying" Grow Together."2

We create the world's No. 1 products and grow together"Technology," signifying "Grow Together." It expresses

to a higher level by integrating excellent technology,

our corporate philosophy of "We create the world's

wisdom, and information from around the world. We

No. 1 products and grow together to a higher level

actively form partnerships with companies and humanby integrating excellent technology, wisdom, andresources with whom we share this purpose, and are

information from around the world."

achieving breakthrough new product developments at

Drawing on this philosophy, we have provided

the nanotechnology level.

manufacturers around the world with precision

To succeed in these collaborations, we foster a global

measuring instrument that fully leverages our cutting-and hybrid corporate cultural environment for Tokyo

edge precision measuring technology and our

Seimitsu (ACCRETECH) that encompasses diverse

semiconductor manufacturing equipment that makes use

cultures under the motto "WIN-WIN RELATIONSHIPSof our precision positioning technology. Taking the idea

CREATE THE WORLD’S NO. 1 PRODUCTS!" Through"No measurement, no manufacturing" (Nothing can be

our technology orientation, we are working to build thecreated without means of measurement.) as the origin

world's No. 1 product development system.

for manufacturing, we will continue diligently striving

Our corporate brand "ACCRETECH," introduced in

to provide valuable technologies and services that are

2001, is a compound word formed from "Accrete" andfriendly to global society and to the global environment.

CSR REPORT 2021

CONTENTS
The History of Tokyo Seimitsu ...................... 4
Tokyo Seimitsu Business Overview ............. 6

Initiatives for Safe Workplace Environments
Creation of healthy workplaces where people canwork with a sense of purpose

CEO's Message ............................................... 8

Realization of Comfortable Workplace

Business Strategy . ........................................10
Tokyo Seimitsu's Policy on CSR . ................ 12

Environments where People can Play Active
Long-Term Roles

ACCRETECH Group Code of Conduct ....... 14

Provision of Opportunities for Every Individual to Grow

Stakeholder Engagement ............................ 15

Relationship with Shareholders and Investors ..... 34
Dialogue with Shareholders and Investors

Corporate Governance .................................16
Corporate Governance

Relationship with the Global Environment . ..... 36

Compliance

Eco-products

Risk Management

Overall Image of Environmental Impacts
Eco-factory

Relationship with Customers . .................... 20

Chemical Substances Control

Compliance and Employee Training

History of Our Environmental Conservation Activities

Maintenance and Improvement of Product Quality
A Global, Meticulous Support Structure

Relationship with Society . ...........................42

A Support Structure Tailored to Customers

Relationship with Local Communities (Hachioji Area)
Relationship with Local Communities (Tsuchiura Area)

Relationship with Suppliers ........................ 26

Relationship with Industry GroupCSR Fulfillment Together with Suppliers

Introduction to Group Companies ............. 45

Relationship with Employees . .................... 28
Consideration of Human Rights and ComplianceData................................................................. 48

with Labor-Related Laws and Regulations

ISO 26000 Correspondence Table . .......... 50

Scope of This Report
Organizations Tokyo Seimitsu, Co., Ltd.
covered:
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)

AffiliatedCompanies:

Tosei Engineering Corp.
Tosei Systems Co., Ltd.
Tosei Box Corp.
Accretech Powertro System Co., Ltd.

Periodcovered:Administration Company(Hachioji City, Tokyo)

In principle, the report covers activities
from April 1, 2020 to March 31, 2021. It also
includes recent initiatives and ongoing
initiatives from before the reporting period.

Editorial Policy
The Tokyo Seimitsu Group endorses the philosophy of ​​the Sustainable Development Goals (SDGs)
advocated by the United Nations. Recognizing the responsibilities and roles we must fulfill to realize
a sustainable society, we engage in CSR activities on the basis of ISO 26000.
Tokyo Seimitsu positions sustainability initiatives as priority items in the Mid-term Management Plan
that we released in May 2018. Based on this, the Tokyo Seimitsu CSR Report introduces our basic
policy for solving social issues through our business activities and for the sustainable enhancementof our corporate value, as well as our fiscal 2020 achievements and our future plans.
We hope that this report will serve as a tool for communication with stakeholders and for better
understanding of our Group companies.

For additional information:

Materials available for download:

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C SR section of Tokyo Seimitsu website
https://www.accretech.jp/english/csr/index.html

Tokyo Seimitsu product information
https://www.accretech.jp/english/product/index.html

Company information
https://www.accretech.jp/english/company/guide.html
Financial data https://ir.accretech.jp/en/index.html

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

SDGs: International Goals for Achieving a Sustainable and Better World by 2030
Note Regarding Forward-Looking Statements
Future plans, strategies, and business results described in this report are based on circumstances as of the time of this writing.
Actual business results and outcomes may differ from those of our outlook.

CSR REPORT 2021

3

The History of Tokyo Seimitsu

Providing the Highest-level Technology to
Achieve the World's No. 1 Manufacturing
Always Changing. Creating the Future. Onward Toward an Unrivaled, One-of-a-kind Presence.
● Precision Measuring Instruments

High pressure flow-type
air micrometer(1952)

Coordinate measuring machine
DELTA SURFCOM(1962)

Coordinate measuring machine
DCM-600A(1969)

Roundness and cylindricalprofile measuring instrument
RONDCOM 5A(1979)

Surface texture
measuring instrument
HANDYSURF E-10A(1984)

Probing machine
A-PM-3000A(1979)

Dicing machine
A-WD-3000A(1984)

Probing machine
A-PM-90A(1992)● Semiconductor Manufacturing Equipment

Germanium pellet automatic
thickness sorting machine(1958)

Dicing machine
A-WD-75A(1970)

1949

1965

1990

1949 ●Tokyo Seimitsu Kogu Co., Ltd. isestablished1951 ●Commences manufacture and sales ofmeasuring machines using mechanicalgauges1952 ●Develops Japan's first flow type air
micrometer
1955 ●Head office in Mitaka
1957 ●Develops Japan's first LVDT type electric
micrometer●Daiichi Seiki Co., Ltd. is established1958 ●Develops Japan's first germanium pellet
automatic thickness sorting machine

1967 ●Develops roundness measuring machine1969 ●Opens Tsuchiura Plant●Tosei Engineering Corp. is established●Develops Japan's first coordinate
measuring machine1970 ●Develops wafer dicing machine
1979 ●Markets roundness and cylindrical profile
measuring instruments using in-house
technology for high-precision rotary air
bearings
1985 ●New building at Mitaka head office iscompleted●Tosei Systems Co., Ltd. is establishedjointly with Computer Engineering &Consulting (CEC) Ltd. as a softwaredevelopment company
1986 ●Stock is listed on the Tokyo Stock
Exchange 1st Section
1987 ●Research Laboratory is established1988 ●Introduces Group Leader system
1989 ●Tokyo Seimitsu Europe GmbH (Germany)is established●Tokyo Seimitsu America, Inc. (US) isestablished1992 ●ACCRETECH Service Center Co., Ltd.
(South Korea) is established●Changes name of Daiichi Seiki Co., Ltd.
to Micro Technologies Co., Ltd.
1994 ●Hachioji Plant and Tsuchiura Plant
acquire ISO 9001 certification●Hachioji Plant attains certification as
certified length measurement laser
calibration business operator under the
traceability system of the Measurement
Act●Beijing Representative Office isestablished●Tokyo Seimitsu (Malaysia) Sdn. Bhd. isestablished1995 ●Tsuchiura Plant attains certification as acertified block gauge calibration business
operator under the traceability system of
the Measurement Act●ACCRETECH America, Inc. and
ACCRETECH Manufacturing Company(US) are established●Enters into partnership with Carl Zeiss(Germany) in the field of precision
measuring instruments
1996 ●Technical Center is established in
Hsinchu, Taiwan
1997 ●Establishes principles for productdevelopment●Tokyo Seimitsu (Singapore) Pte. Ltd. isestablished1998 ●Establishes MOTTO●Hachioji Plant and Tsuchiura Plant
acquire ISO 14001 certification
1999 ●ACCRETECH Finance Co., Ltd. isestablished1962 ●Changes name to Tokyo Seimitsu Co., Ltd.
●Stock is listed on the Tokyo Stock
Exchange 2nd Section●Develops surface texture measuring
instruments
1963 ●Opens Hachioji Plant●Develops Japan's first internal diameterblade-type wafer slicing machine
1964 ●Develops wafer probing machineTokyo Seimitsu Kogu Co., Ltd. (1949)

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CSR REPORT 2021

Head office in Mitaka (1985)

Overcoming countless changes and always evolving, Tokyo Seimitsu is delivering precision measuring
instruments and semiconductor manufacturing equipment with highest-level technology to provide customers
with new possibilities for manufacturing activities.
Overflowing with curiosity and pride, we will constantly tackle the challenges of technical innovation.
Our endeavors to spread our fields of activity throughout the world and to keep on meeting new needs thatarise will continue without end.
Our mission is to achieve the world's best manufacturing activities. We will continue devoting ourselves tomanufacturing activities and will hone our skills as we draw up our dreams and move forward step by step,
toward the future that we want to shape.

Coordinate measuring machineXYZAX SVA FUSION(2004)

Optical measuring
instruments Opt-measure(2012)

Surface texture and contour
measuring instrument
SURFCOM-NEX(2013)

Coordinate measuring machineXYZAX AXCEL(2017)

Charge/discharge testing
system(2019)

Polish grinder
PG200RM(2000)

Probing machine
UF3000(2003)CMP
ChaMP211(2009)High rigid grinder
HRG300(2011)

Dicing blade(2013)

2000

2005

2015

2001 ●Introduces corporate brand"ACCRETECH"●C ompletes new Hachioji Main Plant
Building (ACCT Tower)●Tosei Box Corp. is established2002 ●Introduces In-House Company System

2005 ●New Hachioji Plant and Tsuchiura Plant
are completed●Renews partnership agreement with Carl
Zeiss (Germany) for another 5 years
2007 ●ACCRETECH Korea, Co., Ltd. isestablished●MAHOH DICING MACHINE receives
Chairman's Award of the Japan
Machinery Federation at the 27th JMFAwards for Energy Efficient Machinery●Tsuchiura Plant attains certificationas certified length measurement laser
calibration and coordinate measuringmachine fixed calibration business
operator under the traceability system of
the Measurement Act
2008 ●Tsuchiura Metrology Center opens●Tsuchiura CMM building is completed●Enters into technical tie-up with Mitaka
Kohki Co., Ltd. on non-contact metrology
2009 ●Accretech America Inc. is established2010 ●Head office moves to Hachioji
2011 ●Semiconductor Company Hachioji Plant
No. 5 is completed●Hachioji Metrology Center opens
2012 ●Begins blade business acquired from
Mitsubishi Materials Corporation●ACCRETECH Application Center isestablished to address diversification ofdevice processes

2015 ●Changes name of Tokyo Seimitsu(Thailand) Co., Ltd. to Accretech(Thailand) Co., Ltd.
2016 ●Semiconductor Company Hachioji Plant
No. 6 is completed
2017 ●Issues ACCRETECH Declaration on
Promotion of Women's Participation andAdvancement●Collaborates with Panasonic Factory
Solutions Co., Ltd. on laser grooving
devices for proliferation of plasma dicing
method2019 ●Accretech Powertro System Co., Ltd. isestablished (acquires shares of Fujitsu
Telecom Networks Fukushima Limited,changes name)●ACCRETECH SBS Inc., ACCRETECH SBS
UK Ltd. are established (Subsidiary Tosei
Engineering Corp. acquires balancer
business and UK subsidiary from Schmitt
Industries, Inc.)
2020 ●MI building of Tsuchiura Plant iscompleted●Opens semiconductor businessdepartment of Vietnamese subsidiary●Conversion of Accretech Powertro
System Co., Ltd. (previous Fujitsu
Telecom Networks Fukushima Limited)
to wholly owned subsidiary is completed

Hachioji ACCT Tower (2001)

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5

Tokyo Seimitsu Business Overview

We Create the World's No. 1 Products and Grow Together to a Higher Level byTokyo Seimitsu is expanding its business globally, including in Europe, US, and especially Asia,with semiconductor manufacturing equipment and precision measuring instrument as the pillars of our business.
We aim to create the world's No. 1 products and grow together to a higher level byintegrating excellent technology, wisdom, and information from around the world.

Supporting Manufacturing
Activities throughMeasuring Technologies

25.4 billion yen

Precision Measuring
Instruments
In the automobile, heavy duty equipment, aircraft, andother industries around the world, the high-precision
measuring instrument of the Metrology Company is usedin precision measurement labs and machining toolinglines, where it has earned a high reputation among customers. We will continue our unceasing product development to enhance durability, create smaller footprints,
automate operations, and effect other improvements.

Multipurpose measuring equipment

Sales amount(consolidated)

Ordinary profit(consolidated)

Number of
employees(consolidated)● Coordinate measuring machines●S urface texture and contour measuring

instruments●R oundness and cylindrical profile

measuring instruments● Optical measuring instruments● X-ray CT system● Software

Automatic measuring instrument● I n-process gauges and post process

gauges●E lectric and air micrometers●H igh precision digital measurement

instrument●B uilt-in measuring instruments●S pecial-purpose custom products●G rinding wheel auto balancer

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CSR REPORT 2021

Tackling Social Issues and Contributing to a
products and services focusing on "Health andIntegrating Excellent Technology, Wisdom, and Information from Around the World

97.1
billion yen
15.8
billion yen
2,293

people(As of March 31, 2021)

Semiconductor
Manufacturing Equipment
The Semiconductor Company has established global
top shares in the fields of conventional wafer manufacturing, testing, and back-end processing. The Company
has also entered the fields of CMP (chemical mechanicalplanarizer) and flaking, and is supporting our customers'
construction of optimum production systems for semiconductor manufacturing processes.
●D icing machines●P recision dicing blades●P robing machines●P olish grinders●H igh rigid grinders●C hemical mechanical planarizers (CMP)●W
 afer manufacturing systems

Support the Industry and
Living with Core Products

71.7 billion yen
sustainable society through the value generated by
Safety," "Quality," "Environment and Energy-saving."

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7

CEO's Message

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

President and CEO

I would like to express my sincere gratitude to ourstakeholders for their ongoing support and good wishes.
Fiscal year 2020 was a year in which the COVID-19
pandemic exerted a global impact. While the declarationsof states of emergency in Japan and lockdowns incountries around the world have placed restrictions on
people, remote work- and nesting-related demands havecreated new markets and brought great change to ourlives.
Beyond that, changes are occurring in surrounding society
itself. Under such circumstances, there is increasing
momentum for companies to address the SDGs andotherwise take responsibility as members of a sustainable
society. The Tokyo Seimitsu Group, too, is strongly awarethat we have a responsibility to bring about a sustainable
society.
Applying the precision positioning technology that wehave built up since our founding, the Tokyo SeimitsuGroup has provided the world with semiconductor
manufacturing equipment that is indispensable for the
production of the cutting-edge semiconductors andelectronic components that are vital to digitaltransformation (DX), along with precision measuring
instrument that contributes to energy conservation in
automobiles and other areas. In 2015, when the SDGs
were adopted at the United Nations Summit, weestablished our CSR Department under the direct controlof the President, and named an ongoing role in building afuture full of dreams as the slogan for our CSR activities.
We set issues (materiality) from the viewpoint of the ESGs
and individual targets for solving those issues, and areworking toward the achievement of a sustainable society.

Initiatives for ESG

With regard to the "E" (environmental) of ESG, we arepromoting environmentally friendly product design using
life cycle assessment (LCA) methodology, whichquantitatively evaluates the environmental impacts of a
product over its entire life cycle. We have released
semiconductor manufacturing equipment and precision8

CSR REPORT 2021

measuring instruments that reduce environmental impacts
during product use, which accounts for most of the life
cycle of the products.
In response to environmental issues such as water
resources, waste, and climate change caused by global
warming, we are working toward the reduction of CO₂
emissions from electricity used in our business activities,
reduction of water and paper resource consumption, andimprovement of waste recycling efficiency. In the past,
the Tokyo Seimitsu Group had implemented mid-termtargets with proprietary reduction targets. Upon theannouncement by the Japanese government that it would
raise its fiscal year 2030 target for greenhouse gas
reduction, we revised our reduction targets. In addition, in
2021 we launched internal initiatives related to the TCFD
(Task Force on Climate-related Financial Disclosure),
under which we plan to disclose risks, business
opportunities, and Tokyo Seimitsu Group initiatives in the
future.
With regard to the "S" (social) of ESG, with a strong senseof pride and responsibility for supporting customers'
manufacturing activities through measuring technologies
and products, we have advanced activities to improve andenhance quality and service while continuing to changewith the times. As measures against COVID-19, we areworking to offer new services including web-based
seminars, remote demonstrations, and remote support
using wearable devices.
To strengthen sustainable supply chains, we aredeveloping a web-based system for suppliers that willaddress the ever-growing need for information sharing,
including supplier CSR questionnaires, notifications ofdisasters such as earthquakes and heavy rains, surveys ofdamage conditions, and communication of various
notifications. In combination with the CSR seminar that
we hold yearly, we aim to build a structure that enables
more sustainable and active communication with
suppliers.
With regard to people, we have formulated a new Action
Plan for Promoting Employment and Careers of Women.
We respect the diversity of our employees, and seek tocreate workplaces where we can leverage theindividuality of all people. We are also working toward thecreation of rewarding workplaces by preparing safe andhealthy working environments, promoting work efficiency,
and reducing overtime.
Regarding the "G" (governance) in ESG, in response to theillegal behavior that occurred at a consolidated subsidiaryof the Tokyo Seimitsu Group, we established a special
investigation committee to clarify the whole picture.
Based on the recommendations of the committee, we areformulating and executing recurrence prevention
measures. To establish more transparent governance, wewill undertake reforms of our organizational culture andenhancement of education, setting compliance as thehighest priority for the whole Group.
While deepening WIN-WIN relationships with our many
stakeholders and creating new value, the Tokyo SeimitsuGroup will continue playing a role in building a future fullof dreams.

● Important issues (materiality)
Environmental

Environmental contribution through products(eco-products)
Environmental contribution through businessactivities (eco-factory)
Value provision through products
Strengthening of sustainable supply chain

SocialCreation of workplaces where diverse people
can play active roles
Creation of rewarding workplaces

Governance

Strengthening of management foundation
Strengthening of compliance● Main initiatives for ESG in FY2020

Environment●D evelopment of environmentally friendly products:

Development and release of products with consideration of
LCA*¹●P revention of global warming: Switch to low-carbon electricity
and installation of solar panels at the MI building of the
Tsuchiura Plant●R esource conservation and recycling: Reduction of water andpaper usage, improvement of waste recycling rate

Social●Q uality and safety: Quality improvement through QMS activities

and provision of safety training●S ervices: Construction of operating structures for remotesupport and remote demonstrations●S upply chain: Promotion of CSR activities in collaboration with

suppliers●E nhancement of workplace environment: Promotion of

women's participation and advancement, healthy company
declaration, working hours management

Governance●C ompliance: Implementation of continuous complianceeducation and strengthening of monitoring systems●R isk management: Strengthening BCPs*² and information

security structure*1 LCA: Life Cycle Assessment*2 BCPs: Business Continuity Plan
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9

Business Strategy

Tokyo Seimitsu's Value Creation Model

Input

Business
Planning and development

Value

Service

Semiconductor
manufacturing equipment● Inspection systems (probers): Cover all measurement

needs through a department store strategy●P rocessing systems: Expand target markets by supportingnew technologies and strengthening know-how● Improvement of development speed and

Delivery andinstallation

optimization of cost through in-house production

Foundation for Growth(Digitalization and Sustainable Society)Social Issues that
We Recognize

Capital that
We Have Invested● Environmental●S ocial and● Climate change

conservation● Human rights anddiversity● Occupational health andsafety● Disasters and traffic
accidents● Mental and physicalhealth● Epidemic● Information security● Intellectual capital

Sales

relationship capital● Financial capital● Human capital● Manufactured capital● Natural capital(Adaptation to Rapid Changes in the World)

Inspections

Business Risks*● Risks related to sales activities● Risks related to production anddevelopment activities● Risks related to intellectual property● Risks related to information leaks● Risks related to environmental regulations● Risks related to compliance● Unexpected legal and regulatory risks incountries● Risks from natural disaster, terrorism,
war, epidemic, etc.

*1 Society 5.0: Following hunting society (Society 1.0), agricultural society (Society 2.0),
industrial society (Society 3.0), and information society (Society 4.0), "a humancentered society that balances economic advancement with the resolution of social
problems by a system that highly integrates cyberspace and physical space" (from"Society 5.0," Cabinet Office).

Management policy

Technology and Principles for
Stable Manufacturing Activities
A History and Tradition of
Manufacturing Activities*2 ICE: Internal Combustion Engine. Machinery that burns gasoline, etc. to obtain motive

Medium-term*3 NEV: New Energy Vehicle. Plug-in hybrid vehicles (PHEVs), battery electric vehicles

Stable finances

power.

(BEVs), fuel cell vehicles (FCVs), etc.

etails of business risks are available on our website.
* Dhttps://ir.accretech.jp/ja/management/risk.html

10Opportunities for Growth

CSR REPORT 2021

GovernanceAs a manufacturer of semiconductor manufacturing equipment and precision measuring instruments, our Groupfocuses on cutting-edge product development and customer support that contribute to improving customers'
productivity. Taking prerequisites for corporate growth – "safety and health," "quality," "environment and energy
conservation," and "the unified power of our employees" – as our action guidelines, and leveraging the precision
measuring technology and precision processing technology that we have built up, we will contribute broadly to society,including customers, shareholders, employees, local communities, and the international community, through thedevelopment and supply of excellent semiconductor manufacturing equipment and precision measuring instruments.

activities

OutputToward the Realization ofa Sustainable Company
and Sustainable Society

Designchain

Precision
measuring instruments

Procurement
Wafer probing machine●E ntry into electrical measurement (charge/

discharge testing systems)●S upport for automation of existing measurement

products; applications and market expansion●P roduction streamlining and automation●S ociety 5.0*¹ (fusion of cyberspace and physicalProcessing
Dicing machinespace): Growth of semiconductor market●S hift from ICE*² to NEV*³: A turning point in

Corporate Governance➡ p. 16

measurement management methods● I ncreasing complication and sophistication ofsemiconductors: The importance of inspection
and processing systems increases●G rowth in need for measurement: EV batteries,
motor measurement, automation

Relationship with
Customers➡ p. 20

Manufacturing
Coordinate
measuring machine

Relationship with
Suppliers➡ p. 26

Assembly

Relationship with
Employees➡ p. 28● Principles of product development●C orporate motto that places value on

WIN-WIN relationships● Flat organizational structure

Surface texture and contour
measuring instrument●P recision measuring technology andprecision processing technology● "No measurement, no manufacturing"

Relationship with the
Global Environment➡ p. 36●C ollective of craftsmen who process andproduce core components of the productgroup from materials

Charge/discharge testing
systemRelationship withSociety➡ p. 42

Business Strategy

Data・ Capital foundation
・ Compliance

Relationship with
Shareholders andInvestors➡ p. 34➡ p. 48
Grinding wheel auto balancer
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11

Tokyo Seimitsu's Policy on CSR
Driven by a corporate philosophy of "We create the world's No. 1 products andgrow together to a higher level by integrating excellent technology, wisdom,
and information from around the world," the Tokyo Seimitsu Group promotes
collaboration with all stakeholders, including suppliers and the manufacturersthat are our customers, and seeks to achieve a sustainable society.

MOTTO

WIN-WIN RELATIONSHIPS CREATE THE
WORLD’S NO. 1 PRODUCTS!

Wind power
generation

Precision
measuring
instruments

Corporate Philosophy
We create the world's No. 1
products and grow together to ahigher level by integrating
excellent technology, wisdom,
and information from aroundthe world.

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CSR REPORT 2021

Small
components

Materials

Suppliers

Partners in
Creating New
Value Together

Electric
components

Finishedproducts

 anufacturers
M
supported by
Tokyo Seimitsu

Digitalcommunication
devicesAchievement of a
Sustainable Society
Support Manufacturing
and Society with
Measuring Technology

Medicaldevices

Next-generation
robotsAutomobiles

Semiconductor
manufacturing
equipment

Through precision measuring instrument that is
indispensable in the high-efficiency product production
processes of the manufacturers that are our customers,
and semiconductor manufacturing equipment that
contributes to the production of electrical appliancesthat help conserve energy and resources, the Tokyo
Seimitsu Group has contributed to making society moreconvenient and to reducing environmental impacts. Thismeans that, through the measuring technologies andproducts that the Tokyo Seimitsu Group provides, we
support customers' manufacturing activities and,through the finished products produced by these,
support society as a whole.
In order for us to continue providing society with diverse
value through our products, it is essential that we grasp
the needs of our customers and society from a mediumand long-term perspective, and collaborate with themany suppliers who agree with Tokyo Seimitsu's

corporate philosophy.
We will continue to create new technologies grounded in
WIN-WIN relationships with our stakeholders and tosupport society through manufacturing activities thatenhance quality of life while maintaining and improving
the environment. At the same time, we will enter new
fields in which we can leverage our technologies toprovide safety and security, and will contribute to thedevelopment of a sustainable society.
To continue growing together with our stakeholders, wewill assess impacts on the environment, respect forhuman rights, and other factors in all processes of ourcorporate activities, and, remaining aware of the
responsibilities of the Tokyo Seimitsu Group, will strive
to fulfill our role in society. As a part of these efforts, wewish to openly disclose ourselves as we are through our
CSR Report, and work toward varied forms ofcommunication with our stakeholders.
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13

ACCRETECH Group Code of Conduct
In order to create WIN-WIN relationships with customers,
shareholders, investors, suppliers, and other stakeholders
and to achieve long-term sustainable development
together, the Tokyo Seimitsu Group must engage inactions that are accepted by society in the conduct of ourbusiness activities.
The Tokyo Seimitsu Group has established the
ACCRETECH Group Code of Conduct (hereinafter "Group
Code of Conduct"), covering compliance with laws andinternal regulations, respect for human rights, fair andsincere business activities, ethical behavior, and othermatters with which officers and employees must comply.
We will maintain a transparent and proper corporate

stance, construct a compliance management system, andpromote compliance.
The Tokyo Seimitsu Group will educate and raiseawareness among officers and employees with regard tocompliance with the Group Code of Conduct, and willfurther strive to raise awareness of compliance with thecode.
We will also work to gain the understanding andcooperation of related stakeholders with regard to theGroup Code of Conduct.
An overview of the action guidelines indicated by theGroup Code of Conduct is as follows.

1

2

3

4

Compliance with
Laws, Regulations
and Social Norms

Respect for
Human Rights

Consideration of
Safety and theEnvironment

Fair and Sincere
Business
Activities

5

6

7

8

Handling ofEntertainment,
Gifts, Donations,and Bribery

Appropriate
Information
Disclosure

Respect forIntellectual
Property Rights

Information
Management
and Protection

ACCRETECH Group

Code of Conduct

14

9

10

11

12

Prohibition of
Insider Trading

Avoidance ofConflicts ofInterest

Preservation ofCompany Assets

Media
Relations

13

14

15

16

Severing Relations
with Antisocial
Organizations or
Elements

International
Trade Control

Handling of
Politics andReligionInternal
Control

CSR REPORT 2021

Stakeholder Engagement
The Tokyo Seimitsu Group believes that continuous,
active, two-way communication with stakeholders isimportant in creating business value and social value
while fulfilling our social responsibilities. By sharing
information on real needs and issues through sincere

communication with stakeholders, we seek to build strong
and deep relationships of trust and grow together.
We will deepen WIN-WIN relationships with our many
stakeholders as we work toward the enhancement ofcorporate value and contribution to the world.

● Major stakeholders of the Tokyo Seimitsu Group

Support customers'
manufacturing to contribute to
the achievement ofa sustainable society

Contribute to thegrowth of the industry
through active
interaction

Customers

IndustrygroupsBuild relationships thatemphasize "WIN-WIN"and "social responsibility"

Employees

The Tokyo
Seimitsu
Group

Suppliers

Enrich workplace environments
to enable work with a sense of
purposePromote human resource
development

Shareholders
Strive for transparent
and proactive IR
activities

Local
community

Clarify issues through dialogue
Promote solution-oriented social
contribution activities● Major means of communication with stakeholders
Stakeholder

Customers
Employees
Shareholders

Localcommunities
Suppliers
IndustrygroupsMajor means of communication● Implementation of customer satisfaction questionnaire (once a year) ● Support from Sales

Division/customer service departments (as needed)● Exhibitions/events (several times a year)● Metrology Center (seminars and workshops, private trade shows, etc.) (several times a year), etc.
● Labor management negotiations● Information dissemination via company newsletter and intranet (as needed)● Whistleblower system (as needed), etc.

● Shareholders' Meeting (once a year) ● Business results briefing (four times a year)● Issuance of shareholder newsletter (twice a year) ● Briefings for individual investors (once a year)● Information dissemination via website, etc. (as needed)● Issuance of public relations information of the Tokyo Federation of Labor Standards Associations,

Hachioji Branch (five times a year) and participation in seminars (as needed)● Special lectures for local students (every few years)● Submission of pollution control plan and activity report to Tsuchiura City (once a year)● CSR questionnaire (once a year)● Support through procurement activities (as needed)● Participation in Semiconductor Equipment Association of Japan (SEAJ)● Participation in ISO Technical Committee ● Participation in the Japan Society for Precision Engineering● Japan Precision Measuring Instruments Manufacturers Association● Semiconductor Equipment and Materials International (SEMI), etc.

CSR REPORT 2021

15

Corporate
GovernanceCorporate
GovernanceCorporate Governance
The Tokyo Seimitsu Group is working to build and operate a highly
transparent management system, with the aim to achieving
sustainable growth and the medium- and long-term enhancement of
its corporate value.
● Basic Policy on Corporate Governance

Relationship withSociety

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Relationship with
Customers

The Tokyo Seimitsu Group makes its corporate philosophy "We create the world's No. 1 products and grow together to ahigher level by integrating the excellent technology, wisdom, and information from around the world." By practicing thisphilosophy under the corporate brand "ACCRETECH" that expresses it in a single word, we aim to achieve sustainablegrowth and enhance our corporate value amid the advance of rapid technical innovation and economic globalization.

16● Basic Policy on Compliance
We have prepared compliance-related structures, policies, and regulations that we make known to employees
through education and training, always keeping the ACCRETECH Group Code of Conduct in mind.
● Basic Policy on Risk Management
The Tokyo Seimitsu Group is committed to properly managing risks that could affect business continuity. The Group
acts to prevent the manifestation of potential risks in our business, and responds to those that do manifest.

Governance Report submitted to the Tokyo Stock
Exchange. Japanese and English versions of the
Corporate Governance Report of Tokyo Seimitsu Co., Ltd.,are available at the website below.

Corporate Governance
As a corporate citizen trusted by the international
community, we recognize that enhancing corporate
governance to develop fair and highly transparent
management activities is vital, and, under the following
basic policy, are working to build effective corporate
governance structures and systems.

Basic Policy on the Corporate Governance Codehttps://www.accretech.jp/english/company/basicpolicy.html
Corporate Governance Reporthttps://www.accretech.jp/english/company/corporate_
governance_report.pdf

Basic Policy on the Corporate
Governance CodeTokyo Seimitsu Co., Ltd. supports all of the principles of
the Corporate Governance Code. We report on the statusof our compliance with the code in the Corporate● Corporate governance structure

Shareholders' Meeting
Appointment/dismissal

Board of Directors

Appointment/dismissal
Report9 directors excluding
Audit and Supervisory
Committee members

Reply(including 2 external directors)
Remuneration,
Appointment/
dismissal, etc.
Request for
consultation

Appointed
Remuneration
and Advisory
CouncilAudit and Supervisory
Committee(4 members)
Audit/
oversight (including 3 external directors)

Appointment/dismissal/oversight
Request for
consultation

Reply

Instruction/oversight

Assistant to Audit andSupervisory Committee
and other members

Audit

Instruction/
oversight

Discussion/
reportExecutive Officers
Execution of work

ReportReportRepresentative
Director

Executive
Management Meeting
Executive
Officers' Meeting

Instruction/
oversight
Audit

Accounting auditor

Determination of appropriatenessof accounting audits
Decision on appointment/
reappointment/dismissal proposals

ReportReportCompliance Committee
Risk Management Committee
Information Security Committee

Audit Department
Export Control Department

ReportNew Business Planning Department

Management Support Department Report
CSR Department
Audit/guidance

Quality Management Committee
Environment Management Committee
CSR Committee
Safety and Health Committee
Whistleblower system
Planning/reportCompanies (Semiconductor Company, Metrology Company,
and Administration Company) and Group subsidiaries
CSR REPORT 2021

Instruction/
oversight

Cross-held Shares

In ensuring compliance, it is important to instill in all
officers and employees an understanding of the laws andrules to be followed and an awareness that these must be
observed. The Tokyo Seimitsu Group provides varied
CSR REPORT 2021

Relationship withSocietyCompliance Education

Relationship with the
Global Environment・T he Audit Department conducts internal audits of theTokyo Seimitsu Group's business execution, to verify
the validity of management and compliance with laws
and regulations, the Articles of Incorporation, internal
regulations, and so on.
・T he Audit Department also collaborates with otherdivisions and teams to audit IT control.
When an internal audit discovers an act of businessexecution that violates laws, regulations, the Articles ofIncorporation, or internal regulations, or is deemed as arisk for other reasons, the Audit Department immediately
reports to the CEO, Board of Directors and Audit andSupervisory Committee, after which action is taken by the
Board of Directors.

We have established a Compliance Committee to serve as
the managing organization for the Tokyo Seimitsu Group's
compliance initiatives. The committee's members, mainly
directors and executive officers, include officers in chargeof production, engineering, personnel management, andGroup companies. The Committee chairperson is thecompliance supervision manager for the Tokyo SeimitsuGroup and Tokyo Seimitsu. The directors of the Group
companies who are committee members serve as thecompliance supervision managers in their companies.
The compliance supervision manager appoints acompliance supervision administrator to promotecompliance measures. The compliance supervisionadministrator has the duty of promoting measures andreporting operational status to the compliance supervision
manager.
The Compliance Committee engages in reporting anddeliberation concerning compliance measures and theirimplementation status, including revision of the
ACCRETECH Group Code of Conduct, enactment andrevision of regulations, and planning for education andtraining related to compliance. In the event of violation ofor potential conflict with laws and regulations, thecommittee promptly issues a report and discusses
response measures and recurrence prevention measures.
In the previous fiscal year, the Compliance Committee
functioned and operated satisfactorily as a venue forreporting and deliberation.

Relationship with
Shareholders and Investors

About Internal Audits

Compliance Management Structure

Relationship with
Employees

https://www.accretech.jp/english/company/internal_control.html

The Tokyo Seimitsu Group will comply with laws andsocial norms and will act with integrity and ethics to meetthe expectations of all of our stakeholders.
Toward that end, we have built a compliance management
structure and have established compliance-related
policies and regulations. We are working to make thesewell known through education and training, so that all
officers and employees will maintain a mindset of serving
as good corporate representatives and good citizens, andwill act with sound judgment and high ethical standards.
To not only assess the status of compliance on a regularbasis but also quickly discern compliance-related
problems, we have established a whistleblower systemthat allows officers and employees to seek consultationand make reports upon discovering incidents related tocompliance.

Relationship with
Suppliers

While working to strengthen corporate governance andcompliance, we are also strengthening our internal control
structures and systems for ensuring soundness andtransparency in our management.
In particular,・W e are constructing an effective internal control
system by the Board of Directors and are establishing a
structure for compliance with laws, regulations, and the
Articles of Incorporation, to conduct overall businessexecution properly and soundly.
・T he Audit and Supervisory Committee audits theeffectiveness and functioning of the internal control
system.
・T he Audit Department evaluates and verifies theeffectiveness of the operation of internal controls
related to financial reporting.
In response to inappropriate accounting actions by theformer CEO of a consolidated subsidiary that came tolight in February 2021, Tokyo Seimitsu Co., Ltd. formulated
recurrence prevention measures for the issue and worked
to further strengthen compliance and internal control
through means including reviewing structures andoperations. We will continuously and effectively work
toward the improvement of compliance and internal
control by enhancing our corporate governance andstrengthening our internal control structure.
Details of our basic policy on internal control systems areavailable on our website.

Compliance
Relationship with
Customers

Basic Policy and Structures for Internal Control

Corporate
GovernanceCorporate
Governance

The presence of parties such as business partners as
stable shareholders can result in less rigorous monitoringof management by shareholders. In addition, cross-heldshares constitute an asset not utilized in the corporate
balance sheet, and may be inefficient in terms of capitalmanagement. Accordingly, Tokyo Seimitsu handles crossheld shares in accordance with the following policy.
・T he Board of Directors comprehensively examines themedium- and long-term economic rationality andqualitative aspects of cross-held shares on the basis ofrisk and return.
・ In principle, we will reduce cross-held shares whichwere not recognized by examination to be significant.
・W e will hold shares that are deemed to contribute tomedium- and long-term improvement of corporate
value.
As a result of this policy, between April 2020 and March
2021 the Company sold 11.5 million cross-held shares.

Internal audits are conducted on the basis of an annual
plan approved by the Board of Directors. The results arepromptly reported to the CEO, as well as made known at
the Board of Directors and the Executive Management
Meeting. Information on audit findings andrecommendations for improvement are shared with
relevant divisions in the Company.
In fiscal year 2020, the Audit Department audited fiveinternal departments and Group companies. While minor
indications of differences from internal regulations were
found in some operations, there were none that could
lead to legal violations or serious risks.

17

Corporate
GovernanceCorporate
Governance
Relationship with
Customers
Relationship with
Suppliers
Relationship with
Employees
Relationship with
Shareholders and Investors
Relationship with the
Global Environment
Relationship withSociety18

educational opportunities to enhance knowledge ofcompliance and to maintain and improve the level ofcompliance awareness.
Along with new employee training, training for managers,
and other opportunities for level-specific training, theCompany has introduced an e-learning-based training
mechanism in Japan. The Company also strives to offer
education according to business field and division,
including education for compliance with relevant laws andregulations in industrial safety and health training at
production sites, and education for compliance with laws
and regulations related to quality and environmental
management.
Through the Compliance Committee, we report regularly
on educational plans and achievements related tocompliance.
In the previous fiscal year, we conducted educationaccording to plan.

Whistleblower System
Since fiscal year 2006, we have established and operated
a compliance consultation service that serves as awhistleblower system.
We make this system known to domestic and overseas
Group companies.
The compliance consultation service consists of thefollowing internal and external contacts:(1) W histleblower contact points(Compliance Committee members)(2) Personnel Counseling Department(3) External lawyers(4) External directors(5) D irector serving as an Audit and Supervisory
Committee Member
We ensure the anonymity and protection of privacy ofwhistleblowers, and take care to prevent disadvantageous
treatment of whistleblowers. The content and handling ofwhistleblower reports are reported and deliberated inCompliance Committee meetings.
In whistleblowing results in the previous fiscal year, there
were no compliance-related issues that could affect thebusiness activities of the Tokyo Seimitsu Group.

Initiatives for Compliance
The Tokyo Seimitsu Group has always endeavored toprevent corruption and bribery. In response to the recent
strengthening of laws and regulations relating toprevention of bribery and corruption in various countries,
in January 2020 the Tokyo Seimitsu Group announced its
Anti-Bribery and Anti-Corruption Policy that follows theprovisions of the ACCRETECH Group Code of Conduct.
The Tokyo Seimitsu Group will endeavor to comply withthis policy to prevent bribery and corruption, and asks forthe understanding and cooperation of our stakeholders incomplying with the policy.

Compliance Status
In the previous fiscal year, evaluations conducted throughinternal and external audits found no illegal behavior(other than any already disclosed), legal violations,compliance violations, or other problems that could affectbusiness activities, with regard to adequacy of financial
reporting, product quality and environmental initiatives,
handling of stakeholders inside and outside the Company,
and other matters of the Tokyo Seimitsu Group.

CSR REPORT 2021

Risk Management
Risk Management Policy
Details of our Risk Management Policy and risk items areavailable on our website.
https://www.accretech.jp/english/csr/corporateGovernance/
RiskManagement.html

Risk Management Structure
The Tokyo Seimitsu Group has established a Risk
Management Committee, chaired by the President andCEO and composed of officers in charge of Group
companies and executive officers appointed by thechairperson.
The committee requests reports on the prevention ofpotential risks from risk management divisions, makes
reports to the Board of Directors as necessary, and, in theevent that a risk materializes, immediately establishes a
Risk Task Force.

Business Continuity Plan (BCP*¹)
Tokyo Seimitsu conducts reviews and adjustment of BCPs
and plant BCPs, in accordance with our business
continuity policy.
In fiscal year 2020, we continued from the previous year
in conducting damage estimation for scenarios of threatsat our companies and plants, and fragility analysis of ourcurrent countermeasures. We carried out earthquakeproof reinforcement, continuity measures for productsupply and service provision, and review of manuals inpractical aspects, among other actions. For our head
office network, we conducted disaster recovery testing tocheck the disaster recovery environment and thepreservation of institutional data.
While enforcing COVID-19 infection prevention measures,
we reaffirmed the operations through drills addressing thebasics of evacuation and disaster prevention, andconducted night-time evacuation measures and reviewsof stockpiles. For BCPs at Group companies in Japan, we
engaged in further reinforcement of our data backup
structure and entrenchment of the alternative production
system that we operated through the previous fiscal year.

Safety Confirmation System
The Tokyo Seimitsu Group has introduced a Safety
Confirmation System for confirming people's safety via
mobile phones and smartphones following a disaster or
accident. We explain the system to new employees andenforce early registration. We carry out operation drills
twice a year to confirm the system's effectiveness and toraise awareness of the system among all employees, anduse the drill results to perform reviews and disseminate
information. In the second half of fiscal year 2020, we
conducted drills by division for the first time, with the aimof disseminating information on the monitoring role
performed by staff who confirm safety.

Measures Against COVID-19
As actions to prevent the spread of the COVID-19 infection,
we reduced the infection risk for employees and madeimprovements to the workplace environment. In responseto the introduction of measures and policy changes by thegovernment, we appropriately reviewed and revised ourguidelines for response to COVID-19 patients and theirclose contacts, worked to prevent infection, and maintained
our structure for responding to cases of infection.

Implementation of Workplace Vaccinations

https://www.accretech.jp/english/company/SecurityPolicy.html
Business Continuity Plan
*21 BCP:* ISMS: Information Security Management System

President

Risk and Compliance Committee
Committee

Subcommittees

Semiconductor Company
Officer in charge of security

Metrology Company
Officer in charge of security

Administration Company
Officer in charge of security

Information security
manager

Information security
manager

Information security
manager

Metrology Company

Human Resources
Department

Security
Subcommittee
Accounting and
Finance Department

Technology
Division

Sales
Department

Technology
Division

Sales
Department

Semiconductor Company

Security
Subcommittee

Administration Company

Audit
Subcommittee

TSS
Information
security manager

TSE
Information
security manager

ISMS*² Secretariat

Relationship withSociety

Security
Subcommittee

IT
Subcommittee

Relationship with the
Global Environment

Information Security Committee(Chairperson, Deputy Chairperson,
Secretariat, Committee members)

Relationship with
Shareholders and Investors● Information security
structure

The involvement of digital information in our businessprocesses has increased sharply in recent years amid theonrushing wave of digital transformation. We recognizethat heightening the effectiveness of information security
while balancing data protection against the promotion of
innovation is a vital issue.
In response to growing information security risks such as theransomware and information leak incidents reported inrecent years, in fiscal year 2020 we reviewed our information
security structure and strengthened our initiatives.
While maintaining the mindset of cooperation inconventional cross-organizational management, weestablished IT subcommittees and audit subcommittees
under the Information Security Committee chaired by aCompany officer, to create a structure for solving
specialized issues that must be addressed company-wide
and for conducting audits of activities. In groupcompanies, we assigned officers in charge of security,
information security managers, and information security
subcommittees that serve as working units, performed
detailed management and problem solving tailored tocompanies' particulars, and further strengthened activities
to protect information security assets.
Information on our basic policy for information security isavailable on our website.

Relationship with
Employees

In line with government policy on COVID-19 vaccinationsin the workplace, Tokyo Seimitsu made the decision tocarry out workplace vaccinations at the Hachioji Plant
from July 2021. Within Tokyo Seimitsu and Group
companies, we conducted vaccinations for employees atthe Hachioji Plant, including temporary employees. We aremoving forward with plans to extend vaccinations tofamily members and to neighboring companies with which
we have cooperative relationships. The vaccinations arevoluntary, and we use application procedures via ourInformation Security

Relationship with
Suppliers

Example of infection prevention measures (employee cafeteria)

Workplace vaccination

Relationship with
Customers

Improvement of Workplace Environment• Placement of alcohol-based disinfectants, etc.
• Deployment of non-contact thermometers• Hand-washing • Enforcement of gargling and othersanitary practices • Regular indoor ventilation• Review of cafeteria operation/meeting operation(reduction in number of participants, use of web
meeting, etc.)• Distancing through change of workplace layouts• Installation of acrylic barriers

Corporate
GovernanceCorporate
Governance

Measures to Reduce Infection Risks• Working from home • Distribution of face masks to
be used during work and commuting•Daily checking and reporting of body temperature•Encouragement of taking leave when in poor
physical condition • Restraint from domestic andoverseas business trips

in-house web-based system to avoid forcing vaccinations
on unwilling persons. If adverse reactions occur on day of
vaccination or the following day, we apply special paid
leave so as to avoid unreasonable work. As thegovernment has requested the continuation of preventive
measures even after vaccination, we call on employees tosteadily continue the practice of measures.

Affiliated companies/Overseas subsidiaries
CSR REPORT 2021

19

Corporate
Governance

Relationship with Customers
Lending a sincere ear to our customers and untiringly effecting improvements
day by day, we support our customers' manufacturing through the supply ofsemiconductor manufacturing equipment and precision measuring
instruments driven by state-of-the-art technology, and through full-fledged
support. Doing so, we help to bring about a sustainable society.
Relationship with stakeholders

Customers

Relationship withRelationshipwith
Customers

Value provision throughproducts

Theme

Initiatives/structures

Main outcomes of activities

Maintenance andimprovement of productquality

Tokyo Seimitsu Quality
Management System (QMS)

QMS System Program(achievement rate: 71%)

Change control effectivenessratio (target: 0.5% or less)

Change control effectiveness ratio:
0.38%

Initiatives for customer
satisfaction

Questionnaire-based survey

Number of responses, Semiconductor
Company: 110% year-on-year

Meticulous global support

Standardization of support quality

Implementation of Global Service Meeting

Customer training

Remote support project using smart glasses

Four domestic centers

Seminars and classes (including web-based)

Nine overseas showrooms

Provision of solutions

Introduction of NPS

Support tailored tocustomers

Consigned measurement

Relationship withSociety

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Overseas technical training

20

Basic Policy on Quality
As products provided by Tokyo Seimitsu are incorporated into production equipment, we consider outstanding quality as meaning the provision of
stable and reliable product quality and prompt and meticulous support quality. We constantly strive to improve both of these aspects of quality.

Quality Policy
At both of our plants, Tokyo Seimitsu sets quality targets
and conducts quality control in line with the quality policy
set by our Quality Officer, and works to improve thequality of products and support.
Information on our quality policy is available on our
website.
https://www.accretech.jp/english/csr/customer/index.html

Quality Control Initiatives
In 1994, we achieved ISO 9001*¹ certification at both the
Hachioji Plant and Tsuchiura Plant. Since then, we havebuilt the Tokyo Seimitsu Quality Management System(QMS) with the ISO 9000 series at its center, and haveworked to build safety, quality, and reliability into our
product realization process and to improve quality throughtotal quality control (TQC).
We engage in activities for the improvement andenhancement of quality and service, never forgetting our
responsibility to protect and improve the social status andinterests of our customers by steadily providing them withproducts and services of outstanding quality.

Tokyo Seimitsu QMS

Quality Policy
Maintenance andimprovement of
product quality

Improvement of
support quality

Human resource development
Compliance

CSR REPORT 2021

Compliance and Employee Training
Compliance Education
Compliance is an indispensable element in providing
customers with stable and reliable quality products andservices. We have introduced an e-learning system toconduct compliance education for all of our employees.
We work to improve understanding through confirmation
tests following course completion. We also strive to raiseawareness of compliance through yearly education on key
items concerning information security and the Group
Code of Conduct.

Quality Education
We conduct education on our ISO management system
via e-learning, and work to make the management system
known to all employees. We are also building a system forengaging in work on basis of the latest regulations andstandards, by conducting division-level education onrevisions to our internal regulations and standards and bychecking implementation status through internal audits.
As a part of our employee training, we conduct educationin line with internal regulation to develop personnel who
possess the capabilities required for work that impacts
product quality. As an activity conducted every
November, which we designate Quality Month, we solicit
quality slogans from employees to raise awareness ofquality.

Compliance with Countries' Laws andRegulations (RoHS*²/REACH*³/POPs*⁴)
Tokyo Seimitsu uses an in-house system to manage
compliance with environmental laws and regulations,
including the RoHS Directive, REACH regulations, andPOPs Regulation, for the products that we ship. With the● Provision of stable and reliable product quality and prompt and meticulous support quality

Quality policy/Quality targets

Support and operation・ Initiatives aimed at risk and opportunity・ Planning of quality management system(quality target implementation plan/quality management system program)

Improvement

Our change control effectiveness ratio in fiscal year 2020
was 0.38%, achieving our target value.

Activities for Supplier Quality Improvement

CSR REPORT 2021

Relationship withSociety

Ensuring quality in procured components is essential forachieving stable and reliable product quality. With our
suppliers as key partners, we will carry out our social
responsibilities throughout the supply chain. We distributethe document "Quality Systems and Environmental
Systems Expected of Partner Companies" to suppliers
and work to maintain and improve the quality of the
products we procure. We manage quality defects inprocured products using Defective Product Notices, andwork with suppliers to investigate root causes and prevent
recurrence of the issue. Depending on the degree of
defect, we conduct audits and cooperate with the
suppliers in improving quality.
In fiscal year 2020, we were unable to conduct quality
audits because of the COVID-19 pandemic. Accordingly,
we selected 16 suppliers based on delivery record andquality status, summarized analyses of the causes ofissues that occurred along with recurrence prevention
measures, and offered quality guidance to the suppliers
to improve quality.
We plan to resume quality audits in fiscal year 2021.

Relationship with the
Global Environment

To enhance performance and continuously improve ourQuality Management System, we evaluate performancedata for quality control items (quality management system
program achievement rate, on-time delivery rate, nonconforming product rate, defective rate, complaint rate,etc.) at QC*⁵ meetings, and formulate and implement
improvement measures. We input priority targets andactivities requiring continuous improvement as quality
targets for the next fiscal year, create quality target
implementation plans and quality management system
programs for each department and group, and formulatequality goal implementation plans.
Under the quality management system program, we
confirm the results in Quality Subcommittee meetings
held every three months, evaluate progress, and consider
measures for improvement. Last fiscal year, we achieved
100% of our targets for 53 out of a total of 75 items,
resulting in a 71% target achievement rate. For theremaining items, we clarify factors behind the nonachievement and feedback measures for improvement.

Change control effectiveness ratio (%) =Number of complaints /Number of change controls implemented x 100%

Relationship with
Shareholders and Investors

Quality Improvement Activities throughour QMS System Program

To prevent impacts on quality from changes in design andmanufacturing processes, we perform change control for
design, manufacturing, and services and work tocontinuously maintain quality. Since establishing ourChange Control Rules for high-level standard documents
in 2017 and incorporating these into the lower-levelstandard documents of relevant divisions, we have
reduced the risk of defects associated with change byconducting risk assessments of change control in linewith these management standards.
We are now accumulating performance data from change
control for use as a database concerning similar changes,
and are improving the environment to enable speedierand more efficient change control.
Regarding the reduction of complaints associated withchange control, from 2018 we have set an effectivenessindex for change control as a KPI*⁶, with 0.5% or less as
our target value.

Relationship with
Employees

Following our acquisition of ISO 9001 certification for the
Hachioji Plant and Tsuchiura Plant in January 1994, we
built and have been operating the Tokyo Seimitsu QMS, aquality management system integrated across bothplants. In line with transition to ISO 9001:2015, we
obtained the certification in June 2017.
Under quality control managers at both plants, we engage
in necessary PDCA activities and make continuous
improvements to our Tokyo Seimitsu QMS to provide
products and services that satisfy our customers.

Strengthening of Change Control

Relationship with
Suppliers

Maintenance and Improvementof Product Quality

・ Internal audits
・ Customer satisfaction surveys
・ Supplier performance surveys
・ Management reviews

Relationshipwith
Customers
Customers

cooperation of suppliers, we register information on
chemical substances contained in delivered component
materials into the in-house system, and check the
conformance of these against the applicability of laws andregulations for each of our products.
For component materials that we newly adopt, too, wesurvey chemical substances contained in these at thetime of selection to confirm compliance with laws andregulations.

Monitoring, measurement,
analysis, evaluation
Relationship with・ Instructions from management review
・ C orrective action for non-conformities
・ C ontinuous improvements

Corporate
Governance

PDCA
cycle

・Tokyo Seimitsu Engineering Standards(TES), resources, competencies, educationand training, legal information
・ Creation of products and services
・ Determination of requirements, design anddevelopment, management of manufacturing
and service provision (change control) andrelease, defective product management
・ Quality improvement activities・ Quality management system program execution
・ Communication with suppliers

21

2
1

FY2020FY2019Support

Cost

Initiatives for Customer Satisfaction4: Satisfied

3: Average
2: Somewhat
Tokyo Seimitsu conducts
questionnaire-based surveys
ofQualitydissatisfied
customers who use our products. We use their opinions
to
1: Dissatisfied

Corporate
Governanceimprove and enhance our products and services, andwork to raise customer satisfaction.

Improvement Activities Based on
Customer Satisfaction Surveys(Initiative by the Semiconductor Company)

Customers

Relationship withRelationshipwith
Customers

Overall5Every year, we conduct a customer
satisfaction
4
questionnaire
survey concerning
our products,
andSales support
After-sales service
aggregate and analyze the 3results.
Comparing these with the resultsof the fiscal year 20192
survey,Inquiries
we have affirmed improvement
in many
1
Price items.
about
use
Graphsof semiconductor
manufacturing
equipment0probers and cutting blades, based on the results of thecurrent fiscal year's questionnaire, are shown as
Trust, durability
Delivery dateexamples.

FY2020 questionnaire findings (Equipment: Probers)

Relationship with
Suppliers

Product performance
Sales

Product functionality

FY20204performance
3
Satisfaction

Positive

2

15.2%

1

28.8%
FY2020SupportRelationship with
Employees

0

20

40

individual customers' comments in the customer
satisfaction questionnaire.
560

OverallNega

4

After-sales service

28.

Sales support

3
2
1

Inquiries
about use

Price

Positive0

15.2%

Negative

28.

Trust, durability
8%

Delivery date

NeutralProduct performance

Product functionality

56.0%

FY2020 performance

Goal

In addition to this questionnaire, in July 2019 we began
using aPositive
NPS® (Net Promoter
Score) questionnaire.
Neutral
Negative
We analyze
the resultsfindingsof this questionnaire
improve
FY2020questionnaire(Cutting tools:toblades)2%0%8%
customer loyalty.
Sales

15.

56.

28.

NPS

Negative

56.0%

Cost

4: Satisfied
3: Average
2: Somewhat
that we met in fiscal year 2020 with a score of 3.97.
Cost
Delivery date
Aiming for further
improvement, we
respond to all dissatisfied
1: Dissatisfied

4

Product overviews

Neutral2: Somewhat
FY2020dissatisfied
FY20191: Dissatisfied

Quality1

Goal

FY2019bers)

80

Quality

4: Satisfied
3: Average
100
2: Somewhat(%)
dissatisfied
1: Dissatisfied

FY2020 questionnaire findings (Cutting tools: blades)

3

FY2020Satisfaction
0

20

2

-3.3%
40

60 Performance80

1

FY2019100

FY2020(%)

FY2019-13.6%

4: Satisfied
3: Average
0%
20%
40%
60%
80%
100%
2: Somewhat
Cost
Delivery■Criticism
datedissatisfied■Recommendation ■Neutral
1: Dissatisfied

A Global, Meticulous
Support Structure

Relationship with
Shareholders and Investors

Sales
4
3

ews

Satisfaction
After-sales service

FY20195
4

Sales support FY2020

1

3

FY2019Relationship with the
Global Environment
Relationship withSociety2221Inquiries
about use0

Cost
Trust, durability

Performance

NeutralPositive

Negative

Customer
28.8%Satisfaction Surveys(Initiative by the Metrology Company)
We use a customer
satisfaction questionnaire to survey
56.
0
20 0%
40
60
80
100
customers one year after purchasing measurement (%)
products, and aggregate and analyze the survey results.
Our goal is a customer satisfaction score of 3.7, a target
CSR REPORT 2021

28.8%

Neutral4: Satisfied
3: Average
2: Somewhat
Delivery datedissatisfied
1: Dissatisfied
Delivery date

2%56.0%Based 28.
15.2% 15.
Improvement
Activities
on 8%
Negative

Neutral

Semiconductor Manufacturing
Equipment Business
Positive
A Worldwide
Semiconductor
Business
15.
2%
Negativeand Global Support Structure

56.0%

Price

In addition to customer visits, the web-based system that
we introduced in fiscal year 2018 has become widely
Product performance
Product functionality
used, and our fiscal year 2020 survey received 110% of
the responsesFY2020
receivedin the previousGoal
year.
performance
We will continue efforts to reflect the opinions of ourcustomers in the improvement of customer satisfaction.
PositiveteOverall2

FY2020

4: Satisfied
3: Average: Somewhat
dissatisfied: DissatisfiedySatisfaction

Supply of maintenance parts to 30 countries

FY2020NPS-3.3%

In 2020, we supplied maintenance parts to 395 overseas
customers and 295 domestic customers in 30 countries(including
at 47-13.6%FY2019Japan). ACCRETECH Group companies
sites in 13 countries provide support for equipment that
operates around the world. In the large country of China,
0%
20%
40%
60%
80%
100%
where the growthof deliveries
is particularlymarked, we
have service
bases at 12 locations.
Shanghai and■Recommendation■NeutralIn ■Criticism
Shenzhen, we have a structure in place to respond todiverse customer requests, including support for training
through observation of equipment and demonstration of

FY2020FY2019

processing and evaluation at Application Centers
equipped with state-of-the-art demonstration equipment.

Training System for Young Engineers

Tokyo Seimitsu's support

Customer

Relationship with
Shareholders and Investors

RemotesupportRelationship with
Employees

Due to the inability to engage face-to-face withcustomers under the COVID-19 pandemic, GSE took thelead in establishing the ACCT GLOBAL REMOTE SUPPORT(AGRS) Team.
As a part of this, we launched a remote support projectusing smart glasses*⁷, focused on young team members
in Japan. The team is working to build a customer support
structure, unaffected by the pandemic, for learning work
methods, action principles, and so on through project
management and administration.

Relationship with
Suppliers
Relationship with the
Global Environment

The GSE has held the Global Service Meeting (GSM)
every year since 2013. About 60 service engineer
representatives from local subsidiaries gather at theHachioji Plant for practical training using real equipment
and to receive and share up-to-date information. We haveheld the GSM eight times, creating relationships of trust
between the head office and local subsidiaries throughthe exchanges. Cooperation with local subsidiaries has
become all the more important under the COVID-19
pandemic, during which we must maintain speedy andattentive responses to customers' requests. This year's
GSM will be held online. We believe that we can overcome
the current difficult conditions up until the relationshipsthat we have built up with local subsidiaries.

New Remote Support Project

Relationship with

Global Service Meeting (GSM)

Upon request, we conduct equipment operation andmaintenance training for customers in-house or at worksites around the world. To meet the special requests that
we often receive from customers, we flexibly adapt
training content and prepare training manuals accordingly.
From early 2020, the COVID-19 pandemic has left us
unable to use training methods from previous years, asituation that we expect will continue for some time. Inline with this, we are launching a project team centeredon young people in the Customer Engineering Department
for transitioning to IT-based remote training that allows
VR-based practical experience, even without the use ofreal equipment. In this way, we have begun concrete
approaches to new ways of doing things.

Relationshipwith
Customers
Customers

Scene from 2019

Training Services for Customers

Corporate
Governance

The Semiconductor Company's Customer Engineering
Department-Global Service Engineer (GSE) Group has
been active since 2011 as departments performing
education and support for overseas service engineers. Its
members consist of personnel with overseas post
experience and foreign engineers based in Japan. They
engage in support for customer requests and forequipment operation and troubleshooting, using web
meeting, telephone calls, email, and other means of daily
communication with overseas subsidiaries, engineers, andsales staff.
A feature of GSE's engineer education is a program called
Global Training, which since 2014 has taken in young
engineers from overseas as one-year trainees in Japan.
The purpose of the training is to deepen understanding oftechnology, quality, production, applications, and so on, to
train engineers who can provide high-level support tocustomers after returning to their countries. Trainees also
make connections with members from the head office
and go on to become promising engineers. A total 17
persons have undergone the training up until 2019. Every
one of these remains active with the company at locations
around the globe.
In fiscal year 2020, we were unable to hold the training
because of the COVID-19 pandemic.

At the same time the GSM is held, we conduct skills
checks for all engineers and perform and manage level
certifications. By certifying work that can be performedby engineers according to their level, we provide
customers with high work quality. Engineer skills areclassified into four ranks depending on the type ofequipment. We create training manuals matched to eachrank. Engineers who undergo the training and arerecognized by superiors as having mastered the training
rise to a higher rank, which leads to career advancement.

Relationship withSociety

Scene from 2019

CSR REPORT 2021

23

Precision Measuring Instrument BusinessSupport Activities that Create Customers'
Futures through Precision Measuring
Technology
Adopting the slogan "No measurement, no
manufacturing," Tokyo Seimitsu's Precision Measuring
Instrument Business sees providing society with precisionand reliability, not merely selling measuring instrument, as
the origin of manufacturing. No manufacturing is possible
without the process of measuring. We further believe thatmeasuring accurately is an indispensable task in order forour customers to reliably provide products that earn thetrust of society. Toward that end, we have established astructure to provide various forms of support.

Experience the Tokyo Seimitsu Value

Tokyo Seimitsu has established four Metrology Centers in
Tsuchiura, Hachioji, Nagoya, and Osaka to provide close
support to our customers. Engineers with sufficient knowhow of measurement technologies and the operation of
measuring instruments are stationed at the Centers tomeet our customers' diverse needs.
<A Place for Learning about Tokyo Seimitsu's Products
and Measurement: Technology>
We hold plant tours, product workshop, metrology
seminars, and other events for dealers, universities andhigh schools, local companies, and customers who use
our measuring instruments, to provide a place for learningwhere these parties can deepen their understanding of
measurement technology and view a variety of productexhibits.
As another initiative, we also conduct web-based
seminars to provide information to large numbers ofpeople.

Trust

SUPPORT

Web
Seminars

Finding
Solutions
Trainings

Showrooms at Metrology Center[Japan] Tsuchiura
Hachioji
NagoyaOsaka[Overseas] Thailand, Vietnam,
China, Indonesia,
Korea, Taiwan, EU,
Malaysia, Brazil

Reliability Sincerity Technology

Seminars

Call Centers

PassionRelationship withSociety24

Initiatives by Metrology Centers

Show Rooms

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Customers

Relationship withRelationshipwith
Customers

Corporate
Governance

A Support Structure Tailoredto Customers

CSR REPORT 2021

We aim to create a facility that impresses andsatisfies the visitors by solving various issues
they face through our diverse measuring
instruments and wide range of solutions that wecan propose.

Permanent showrooms
Introduction of new products
Holding private seminars

Area of solutions
Provision of knowhow for measuring technology
Creation of measuring programs
Designing and production of fixing jigs
Customer support
Consultations on measurement anduse of measuring instruments
Holding measurement training schools
Consignment measurement
Each employee acts as a foundation of
the Metrology Center with passion
Every employee welcomes customers with a smile.

● Number of times providing place for learning
PurposeNumber oftimes

Seminars and classes(including web-based seminars)

14

Classes/measurement guidance at public institutions

11

To deepen WIN-WIN relationships with our customers, wego beyond responding to the requests of visiting guests
to address their greater expectations, by offering services
including solutions proposals and operation training. For
customers unable to come to us, we have readied astructure for responding remotely.

We have set up a call center in the Metrology Centers tooffer consultation on measurement, handling of measuring
instruments, and troubleshooting support.
We analyze the content of inquiries for incorporation into
operation manuals to facilitate easier use. We also
regularly conduct measurement guidance at training
schools and otherwise provide support to purchasers of
our measuring instruments. We even perform consigned
measurement on behalf of customers who do not haverequired instruments, have instruments without neededfeatures, or are otherwise unable to perform measurementon their own.

Corporate
Governance<Proposal of Solutions: [Sincerity]><Customer Support: [Reliability]>

Number9,405
194

Training sessions<Initiatives for Customer Safety and Security>

ISO 9001: An international standard concerning systems and*1 mechanismsof management to achieve goals in response to
RoHS Directive: Restriction of Hazardous Substances*2 Directive.
A directive that places restrictions on the use of*

specified hazardous substances.

3 REACH regulations: EU regulations for the Registration,
Evaluation, Authorisation and Restriction of Chemicals.

POPs Regulation: European Parliament and Council regulations*4 onpersistent organic pollutants (POPs).

information through the lenses.

CSR REPORT 2021

Relationship withSociety*5 QC: Quality Control.
*6 KPIs: Key Performance Indicators.
Smart glasses: A wearable device that is worn like glasses and*7 linkswith a computer or smartphone to display layers of digital

Relationship with the
Global Environment

the needs of an organization's customers and markets, throughquality assurance for products and services.

Relationship with
Shareholders and Investors

In our global service departments, service engineers fromdifferent countries come together at the Metrology Centerin the Tsuchiura Plant to undergo intensive training anddrills. Given the difficulty of traveling to Japan, however,we create and provide video teaching materials to improve
the skills of service engineers in those countries.

Relationship with
Employees

Training of Engineers Overseas

Relationship with
Suppliers

Customers can directly visit our Metrology Centers andgain hands-on experience with measuring instruments
and methods to deepen their understanding of Tokyo
Seimitsu's measuring instruments. For those unable tovisit for reasons including travel restrictions under the
COVID-19 pandemic, we offer support through remotedemonstrations and web-based seminars, and makeefforts to help customers understand our measuring
instruments safely and with peace of mind.

Relationshipwith
Customers
Customers

Details
Call Center responses

Relationship with● Activities in FY2020

25

Corporate
Governance

Relationship with Suppliers
To deepen WIN-WIN relationships with all of our suppliers,
we will construct a supply chain that places importance on social
responsibility and seek sustainable growth together.
Relationship with stakeholders

Relationship withSociety

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Supplierswith
Relationship
Customers

Relationship with
Customers

Strengthening of sustainablesupply chain

26

Theme

Initiatives/structures

Main outcomes of activities

CSR surveys/check-ups

Supplier CSR questionnaire

88.7 out of 100 points

Entrenchment of CSR
procurement

Workshop for Suppliers

1 time/year

Strengthening of information
sharing

Web-based system for
suppliers

Completion of development

Manufacturer's responsibility

CSR training for employees

e-learning

Basic Policy on Procurement
In providing high-performance, high-quality products to customers, Tokyo Seimitsu views all suppliers that provide the necessary
materials, parts, and services as important partners. To build WIN-WIN relationships with those suppliers, it is vital that we fulfill our social
responsibilities throughout the supply chain, in terms of not only safety and quality but also human rights and labor, occupational safety
and health, the environment, ethics, and information security, fully complying with laws and social norms. Each supplier, acting
autonomously as a responsible business that meets the needs of the international community while collaborating with our Company,
engages in high value-added manufacturing within a strong value chain.

CSR Fulfillment Together with SuppliersTokyo Seimitsu has declared its conformance with the
Responsible Business Alliance (RBA: former EICC). To
meet the demands of the international community
throughout the supply chain, including safety in working
environments, worker dignity, and corporate responsibility
for environmental impacts, we also ask our suppliers tocooperate in complying with international standards.

Formulation of Supplier CSR Guidelines
and Request for Cooperation
To meet the expectations of the RBA and the international
community, we have formulated the Tokyo Seimitsu
Supplier CSR Guidelines that set out our procurement
policy and our supplier guidelines with regard to humanrights and labor, occupational safety and health, theenvironment, ethics, safety and quality, and information
security.
We ask that our suppliers understand the purpose of
these guidelines and cooperate with us in promoting
sustainable procurement activities.
Tokyo Seimitsu's Supplier CSR Guidelines are available on
our website.
https://www.accretech.jp/english/csr/supplier/CsrWithSuppliers.html
https://www.accretech.jp/english/csr/supplier/images/Guidelines.jpg

Supplier CSR Survey Activities
Since fiscal year 2016, we have used the "SCM (Supply
Chain Management) Check Sheet" to survey suppliers'
compliance with CSR. We survey and score suppliers on
items in eight main categories: "Legal compliance," "Ethics
management," "Environmental management," "Facility andequipment (safety) management," "Labor and employment
management," "Biodiversity," "Conflict minerals," and"Business continuity."
The average score of the 166 responding companies was
88.7 points out of 100. Of the scores, 4.8% were in the70s, 51.2% in the 80s, and 44.0% in the 90s.
By category, the three items with the lowest percentages
CSR REPORT 2021

were "Promotion of women's advancement in labor andemployment management," "Biodiversity," and "Business
continuity." We work through our Workshop for Suppliers
to make improvements in these areas. We confirmed thatproper management is being performed in the other fiveitems, and shared this confirmation.
We are also deepening close cooperative relationships
with suppliers by means including direct visits to ask
about CSR compliance status and areas of difficulties andto discuss support for resolving problems. By doing so,
we are promoting collaboration to fulfill our social
responsibilities throughout the supply chain.
In the area of environmental consideration, we also use aseparate "Environmental Management Structure Survey
Sheet" to conduct surveys and request improvements.
Based on the survey results, we identify operations thathave an impact on the environment, and request
submission of an "Environmental Impact Contractor
Register" and "Environmental Conservation Status Survey
Sheet."

Mutual Development with Suppliers○ Web-based system for suppliers
We are developing a web-based system to share information
with suppliers, broadly and without redundancy.
This will address the ever-growing need for information
sharing, including supplier CSR questionnaires,
notifications of disasters such as earthquakes and heavy
rains, surveys of damage conditions, and communicationof various notifications.
We will use this system to build a structure for moresustained and active communication with suppliers.
Supplier web system
Tokyo Seimitsu

Supplier

Main communications
Information/survey concerning
CSR procurement(CSR Guidelines,
CSR Assessment)
Damage impact survey(earthquake, typhoon,
flood, plant fire)
Miscellaneous notices(celebratory get-togethers,
plant regulation information)

Arriving email

Registration/
Response

DownloadResults of Training for Employees

Once a year, Tokyo Seimitsu conducts commendations forvendors. We commend outstanding suppliers based on
evaluations of five items: quality, cost, delivery time, rateof cooperation, and management. The commendations
were canceled in fiscal year 2020, as in fiscal year 2019,to prevent the spread of the COVID-19 infection.

Every year, we conduct e-learning-based education for
Procurement Department employees who are in contact
with suppliers. We offer training on topics including ethics,
safety and quality, and information security, and check onapproaches to suppliers.

Implementation of Workshops for Suppliers

1. T okyo Seimitsu Code of Conduct
2. Subcontract Act
3. Information security
Relationship with
Customers

Every year, Tokyo Seimitsu offers CSR seminars atworkshops hosted by suppliers to aid understanding of
the importance of fulfilling social responsibilities in the
supply chain.
The fiscal year 2020 workshop was held on March 5, in asmaller format under measures to prevent the spread of
the COVID-19 infection.
Following the workshop, we shared information bysending materials to suppliers who were unable toparticipate, and exchanged ideas by e-mail.

● Tokyo Seimitsu's employee education themes

Corporate
Governance

Implementation of Supplier Commendation

4. Ethics● Tokyo Seimitsu CSR Seminar
Relationship with
Supplierswith
Relationship
Customers

FY2015 P olicy on CSR
FY2016 O
 verview of the "SCM Check Sheet"and Survey Request

Relationship with
Employees

FY2017 T rends in CSR
Results of the Previous Year's "SCM
Check Sheet"
Tokyo Seimitsu's CSR Activity Report
FY2018 T okyo Seimitsu's CSR Activity Report
Trends in CSR
Initiatives for the Supply Chain
Supplier CSR Guidelines (First Edition)*O verview and request for submissionof "Check Report"

Relationship with
Shareholders and Investors

FY2019 T rends in Prohibited Substances in
Products in 2020
Sharing of Information on Typhoon
Damage in 2019 and Review of BCP
Introduction to Disaster
Countermeasures

Relationship with the
Global Environment

FY2020 O
 verview of Web-based System for
Suppliers
Trends in Environmental Laws andRegulations for Products
CSR Questionnaire

Relationship withSociety

CSR REPORT 2021

27

Corporate
Governance

Relationship with Employees
To enable all employees to work with a sense of purpose, we will
promote the development of human resources and will create workplaceenvironments that are healthy and safe both physically and mentally,letting all employees demonstrate their capabilities to the utmost.
Relationship with stakeholders

Theme

Relationship with
Suppliers

Relationship with
Customers

Creation of workplaces where
diverse people can play active
roles
Creation of rewarding
workplaces

Relationship with
Employees
Relationshipwith
Employees
Relationship with
Shareholders and Investors
Relationship with the
Global Environment
Relationship withSociety

Main outcomes of activities

Promotion of compliance

ACCRETECH Group Code of Conduct

e-learning: 1 time/year

Securing of safe and secure
workplaces

Zero accidents resulting in
leave

Achievement of zero accidents
resulting in leave

Skills/special education training

Participants: 116

Creation of healthy workplaces
where people can work with asense of purpose

Healthy company declaration

Improvement of environment for
promotion of healthRealization of comfortableworkplace environments where
people can play active longterm roles

Measures to address long
working hours

100% rate of taking 5 or moredays of annual paid leave

Action Plan for Promoting
Employment and Careers of Women

Ratio of job applicants: 27.9%
Hiring ratio: 14.5%

Provision of opportunities forevery individual to grow

Human resource training/development

Education and training:
1,731 hours

Basic Policy on Human Resources
Employees are the core assets of Tokyo Seimitsu. We believe that carefully protecting and nurturing these assets is indispensable to thesustainable growth of our company. We work to prevent acts of discrimination based on age, gender, race, religion, country of origin, or disabilities,
and to create workplaces where diverse human resources can work in safety and health. We also provide education and an environment thatencourages the growth of each individual, and undertake initiatives that encourage employees to work with motivation and a sense of purpose.

● Five Initiatives❶ Consideration for human rights and compliancewith labor-related laws and regulations

28

Initiatives/structures❷ Initiatives for safe workplace environments❸C reation of healthy workplaces where people
can work with a sense of purpose❹R ealization of comfortable workplace environments
where people can play active long-term roles❺ Provision of opportunities for every individual to grow

Employees' sense offulfillment from work
Environment that promotes employees'
growth and allows active participation
by diverse human resources
Workplaces that allow employees
to work in safety and health
Consideration of human rights
Compliance with labor-related
laws and regulations

Consideration of Human Rights andCompliance with Labor-Related
Laws and Regulations
We indicate compliance with labor standards and withsocial norms and laws concerning occupational healthand safety, prohibition of acts that infringe on humanrights, and other matters in the ACCRETECH Group Codeof Conduct, and regularly conduct e-learning regarding
this code of conduct.
Tokyo Seimitsu instructs domestic and overseas groupcompanies to confirm age when hiring to prevent childlabor, and to comply with local laws and regulations to
CSR REPORT 2021

avoid constraints that equate to forced labor. We conduct
regular audits of these matters. Tokyo Seimitsu has alabor union that holds collective bargaining rights
guaranteed by collective agreement. Employee
representatives, chosen by election, engage in direct
discussions with managers and work toward working
environment improvements through courteous
discussions. In these discussions, we also confirm
adherence to statutory maximum working hours andstatutory minimum wage.

Initiatives for Safe Workplace
Environments
Many devices, parts, tools, and machine tools from Tokyo
Seimitsu, a manufacturer of machinery, can be found at
manufacturing and distribution sites. As our products
consist of equipment used in production, many tasks suchas delivery, installation, maintenance, and inspection
occur in the unfamiliar environments of customers'
production sites. By carefully investigating risks
associated with these, observing and predicting the
movement and flowline of workers, and implementing
measures to minimize safety risks, we promote
occupational health and safety initiatives so that everyday
work actions can be carried out safely and rationally.
Based on this approach, activities involving the following
four aspects are included in reports.
Safety management in plants
Assurance of safety outside of plants
Disaster prevention, disaster mitigation, and emergency
lifesaving
Traffic safety during commuting and business trips

Safety Management in Plants
Plants are spaces where employees carry out work everyday. The basic structure of a plant does not undergo
significant change other than during expansion orHachioji Plant(conducted by Tokyo Federation of Labor
Standards Associations, Hachioji Branch:★)

Unit: persons

No. of people

Safety and health education course for new
employees (at time of hiring)★

43

Skill training course for sling work/special training
course for crane operation★

23

Training for foremen and safety and health supervisors★

10

Skill training course for operation chief of organic solvent★

12

Skill training course for chief of specified chemical
substances and tetraalkyl lead, etc.★

2Special training for workers dealing with dust

10★

Tsuchiura Plant

No. of people

Safety training for forklift, sling, and crane operations

48

Reduction of Industrial Accidents

FY2016 FY2017 FY2018 FY2019 FY2020

0.71

0.00

0.00

0.97

0.00

Metrology
Company

0.00

0.00

0.00

0.00

0.00

Tokyo Seimitsu(non-consolidated)

0.51

0.00

0.00

0.71

0.00

● Severity rate for accidents resulting in leave*²
FY2016 FY2017 FY2018 FY2019 FY2020
Semiconductor
Company

0.043

0.000

0.000

0.004

0.000

Metrology Company

0.000

0.000

0.000

0.000

0.000

Tokyo Seimitsu(non-consolidated)

0.031

0.000

0.000

0.003

0.000

In addition to assessments and countermeasures for work
environment risks conducted through workplace patrols
and risk assessments performed when introducing new
machinery or changing work procedures, we work to
avoid risk by conducting education and training on

When purchasing new chemicals and chemical
substances, the division in charge at the Hachioji Plant
grants purchasing permission for both plants. This enables
the division to track all chemicals and chemical
substances used and stored at both plants. Through thiscentral management of chemical substance risks, usage/storage methods, laws and regulations to be observed,
and the requirements of these, all applicable divisions areable to quickly prepare for and respond to legal revisions.
We require divisions that manage and use chemical
substances to conduct regular inspections and regularquantity checks in accordance with standards, to conduct
regular internal audits by qualified ISO 14001 internal
auditors, and to carry out patrols of chemical management
and storage status by the Regulated Substance Control
CSR REPORT 2021

Relationship withSociety

Initiatives for Occupational Safety

Handling of Chemicals and Chemical Substances

Relationship with the
Global Environment

Semiconductor
Company

At the Hachioji Plant, we conduct safety inspections of all
workplaces once a year through teams composed ofseveral persons, including the Plant Manager. On safety
inspections, we use a check sheet to identify safety risks.
At workplaces where risks are discovered, we conduct
follow-up inspections at a set period of time after
directions for improvement are issued, to confirm theeffectiveness of the improvements. We regularly carry out
5S patrols to promote the tidying and ordering ofworkplaces. Using a scoring system introduced in fiscal
year 2017, we commend high-scoring workplaces twice ayear, increasing 5S awareness in every workplace.

Relationship with
Shareholders and Investors● Frequency rate for accidents resulting in leave*¹

Safety Inspection and 5S*³ Patrols

Relationship with
Employees
Relationshipwith
Employees

The Hachioji Plant and Tsuchiura Plant have each set a targetof zero accidents resulting in leave. Both plants achieved thistarget in fiscal year 2020, but each experienced three minor
accidents (six in total) that did not result in leave.
To prevent these from becoming serious accidents, we work
to prevent recurrence of minor accidents and arestrengthening our inspections and risk assessments.
Tsuchiura Plant of the Metrology Company maintains a recordof 31 consecutive years of no accidents resulting in leave.
The accident frequency rate*¹ and severity rate*² for the
Semiconductor Company, the Metrology Company, andTokyo Seimitsu (non-consolidated) are shown below.

Relationship with
Suppliers

At each plant, we organize a Safety and Health Committeewith the Plant Manager as the general safety and healthmanager. Based on the annual plan approved by the
Board of Directors, the committees carry out activities foroccupational safety related to the environment,machinery, tasks, etc.; occupational health related to
infection, food poisoning, mental health, chemicals, etc.;
self-defense firefighting; disaster prevention andmitigation; traffic safety and emergency lifesaving; andother matters. We also conduct internal audits twice ayear, with results submitted to the Audit Department andreported to the Board of Directors. The Health and Safety
Committee is subject to audits by the Audit Department.

● Items implemented in FY2020

Relationship with
Customers

Activities of the Safety and Health Committee

machinery operation, heavy machinery work, wiring
operation, and other topics as needed.
We further supplement in-house education withparticipation in occupational safety seminars at external
training institutes. Most of these seminars at external
institutes are conducted by the Hachioji Branch of theTokyo Federation of Labor Standards Associations, ofwhich our Company is a participating member. Theseseminars aid in promoting occupational accident
prevention activities for workers in the region, in addition
to providing education for our employees.

Corporate
Governancerenovation, but it does change continuously due toadjustments in production activities, changes in productcomposition, improvement activities, and so on.
Accordingly, ongoing activities to seek out and mitigate
safety risks are important.
At both our Hachioji Plant and Tsuchiura Plant, we have
set reduction targets for industrial accidents andaccidents involving company cars, and engage in ongoing
accident reduction activities. Under each plant's Safety
and Health Committee, we promote multifaceted activities
through establishing subcommittees such as the Safety
Subcommittee, the Health Subcommittee, and theDisaster Prevention Subcommittee.

29Assurance of Safety outside of Plants
As the products provided by Tokyo Seimitsu consist ofequipment used in production, many tasks such as
equipment installation, maintenance, and modification
occur at customers' production sites. At our plants, we
perform risk management according to our own standards
and methods, and are able to control safety standards
related to the environment and equipment. At customers'
plants, however, we are unable to judge risks in advance.
Operation of semiconductor manufacturing equipment inparticular takes place in what are known as super clean
rooms. The special clean room clothing worn during workin these rooms narrows the field of view and restricts
movement.
Under these conditions, workers must have the ability toanticipate and avoid potential dangers at an early stage.
To provide education and training for improving thisability, the CE (Customer Engineering) Department of the
Semiconductor Company, which is in charge of customer
support and support engineer
training, implements the Work
Leader Training of the SEAJ
(Semiconductor Equipment
Association of Japan) every two
years. Trainees hone their skills by
repeatedly undergoing regularlyupdated education, enhancing their
Clean room clothingability to execute work more safely.

Disaster Prevention, Disaster Mitigation,
and Emergency Lifesaving○ Evacuation drills for all sections
In order to prevent the spread of the COVID-19 infection, theevacuation drill that we conduct annually for all divisions waschanged to a drill avoiding the "three Cs" (Closed spaces/
Crowded places/Close-contact settings), conducted under
the guidance of the Hachioji Fire Department.
○ Individual level・ C onfirmation of floor evacuation routes using
evacuation route map・ C onfirmation of locations of fire extinguishers and fire
hydrants on the floor using checklist○ Division/team level・ B riefings for leaders, covering the sounding of alarm (oroccurrence of disaster) to completion of evacuation・ B riefings and guidance on handling of fire hydrants
and fire extinguishers
The Hachioji Plant conducts drills for divisions and teams,
and reports outcomes to the Hachioji Fire Department.
Similarly, the Tsuchiura Plant also conducted confirmationof evacuation routes and fire extinguishers locations for
all divisions and teams.

Relationship withSociety

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees
Relationshipwith
Employees

Relationship with
Suppliers

Relationship with
Customers

Corporate
Governance

Subcommittee under the Safety and Health Committee. In
fiscal year 2020, we conducted these patrols seven times,
including follow-up patrols. In fiscal year 2020, we
conducted a chemical substance risk assessment byreviewing 76 currently used and newly adopted chemical
substances at both plants.

Team-level evacuation drill30

CSR REPORT 2021

Self-Defense Fire Brigade
At both the Hachioji Plant and Tsuchiura Plant, weorganize self-defense fire brigades and conduct regulartraining one or two times a month according to annual
plans. We have installed Digital CB transceivers to enable
practical firefighting activities while maintaining proper
communication in emergencies, and increased thenumber of the transceivers to five in fiscal year 2020. We
plan to further increase the number of units inconsideration of manufacturing site expansion.

Emergency Scenario Training
In every division, we conduct emergency scenario training
for splash prevention, recovery/cleaning, and other tasks
in situations such as hazardous substance leaks.
A training plan is submitted to the person responsible forenvironmental management at the start of each fiscal
year, and a report is submitted following training. In fiscal
year 2020, the Hachioji Plant conducted independent
training for 11 divisions. At the Tsuchiura Plant, 105 people
from the plant department took part in chemical cleaning
agent splash prevention training.

Emergency scenario training

Emergency Lifesaving
To allow us to assign multiple participants in emergency
lifesaving training to all workplaces at both plants, several
employees undergo emergency lifesaving courses every
year. In fiscal year 2020, four people underwent anadvanced first aid seminar at the Hachioji Plant. The
seminar was canceled at the Tsuchiura Plant to preventthe spread of the COVID-19 infection.
We have installed AEDs at the Hachioji Plant andTsuchiura Plant, as well as at the large Sales Offices in
Nagoya and Osaka. At the large Hachioji Plant, one AED*⁴
and one stretcher are placed in each of the eightbuildings. The plant also engages in disaster response
and emergency lifesaving measures including drinking
water dispensers, power generators, and trash canscontaining portable toilets for disaster response.

Traffic Safety During Commuting and Business Trips
Every year, the Hachioji Plant and the Tsuchiura Plant invite
lecturers from the traffic section of their local police stations
to hold seminars on traffic regulations and traffic safety.
Employees authorized to drive company cars are required
to attend the seminar, as are commuting employees who
have received permission to park a car, a motorcycle, or abicycle at the Company.
In fiscal year 2020, under the guidance of their local
police stations, the plants conducted the seminars withsteps taken to avoid the "three Cs"(Closed spaces/
Crowded places/Close-contact settings) and prevent the
spread of the COVID-19 infection. The Hachioji Plant held
the seminar two times, with attendance by a total of 205
people. The Tsuchiura Plant raised awareness of safe
driving in divisions and confirmed the training
implementation records for all targeted people.

Creation of Healthy Workplaces where
People can Work with a Sense of Purpose

Healthy Company Declaration

Initiatives to Address Infection Risk

Relationship with the
Global Environment
Relationship withSociety

CSR REPORT 2021

Relationship with
Shareholders and Investors

In May 2021, we received a letter of appreciationfrom Hideyuki Kobayashi, Chair of the Tokyo
Kinzoku Jigyou Health Insurance Society.

Relationship with
Employees
Relationshipwith
Employees

By developing environments and systems under whichpeople accept each other's lifestyles and values in
anticipation of changes in the times and in theenvironment, Tokyo Seimitsu believes that people
inspiring each other on the basis of diverse perspectives
and ideas can create new value and can achievesynergies that exceed the sum of individual abilities. As
the first step toward this, we will focus on diversity
initiatives including promotion of employment for women,
promotion of employment for persons with disabilities,
and enhancement of work-life balance, to advance thecreation of rewarding workplaces suited to individuals.

Relationship with
Suppliers

In the past, employees individually sought influenza
vaccination. From fiscal year 2019 at the Hachioji Plant
and from fiscal year 2020 at the Tsuchiura Plant, we havemade vaccination possible during working hours, includingfor Group company employees working at these operationsites. Over 600 employees were able to receive
vaccinations as a result, an aid in preventing influenza.
From July 2021, we conducted COVID-19 vaccinations at
successive workplaces in the Hachioji Plant, for Tokyo
Seimitsu and Group company employees (including
temporary employees) working at the plant. We aremoving forward with plans to extend vaccinations beyond
employees working at the Hachioji Plant.

Realization of Comfortable Workplace
Environments where People can Play
Active Long-Term RolesAt the Hachioji Plant and Tsuchiura Plant, specified healthguidance is available from health insurance society nurses
during working hours. Our implementation rate for
specified health guidance in fiscal year 2020 was 61.0%,
far above the national average*⁵.
We also respond to the health management survey
conducted every year by the Ministry of Economy, Tradeand Industry. While identifying issues, we will work to raise
our level as a "healthy company" to achieve the next step.

Relationship with
Customers

Employee health is a cornerstone of a company's longterm stable management. We have made efforts toward
the health of our employees by means that include
conducting health checkups. As a further company
initiative to address health management, we issued a"healthy company declaration" to the Tokyo Federation of
the National Federation of Health Insurance Societies, andin August 2020 received a silver certificate as an"Excellent Health Company."
We have set a target of health checkups by 100% of
employees, determine monthly health themes (exercise,
food, sleep, etc.), and carry out activities to publicize
these within the company. In addition to health themes,
we use our portal site and other means to post andpublicize any health-related information received from theTokyo Metropolitan Government or the Ministry of Health,Labour and Welfare. The cafeterias at the Hachioji Plant
and Tsuchiura Plant offer a "Healthy Company Declaration
Collaborative Menu" once a week. Diet is another area inwhich we consider the health of our employees, andhealth awareness is increasing among employees.

Every year, we perform periodical health checkups,
comprehensive medical examinations, gynecologicalcheckups, and other procedures to check the health of
employees. For persons with abnormal findings, we
encourage repeat examinations and provide specified
health guidance. Our examination rate for stress level
checks, including employees at overseas posts or
stationed outside the company, exceeds 99%. The checks
have become established as an opportunity for
employees to take note of their own mental condition.
We manage individual stress level check results inaccordance with laws and regulations and provide
feedback to the individuals, conduct organizational
analysis and, after making report to the Risk Management
Committee and the Safety and Health Committee, work to
improve the workplace environment. Based on the resultsof stress level checks and other information, in fiscal year
2020 we encouraged managers to undergo e-learning
related to mental health.

Corporate
GovernanceIn order for people to make the most of their capabilities
and work with a sense of purpose, we believe it isimportant for those people and their families to bephysically and mentally healthy. We offer healthy lifestylesupport for our employees and their families, and work tocreate comfortable workplaces by means including strictworking hour management to avoid long working hours.

Health Checkups and Stress Level Checks

31Corporate
Governance
Relationship with
Customers
Relationship with
Suppliers

Promotion of Women's Participation and Advancement● Percentage of female employees 

As we reach the final year of our Action Plan for Promoting
Employment and Careers of Women, we have been working
toward the achievement of its goals. In new graduate
recruitment, we hold online job fair and interviews withfemale employees in a variety of job types and also offer
information on the childcare support system online, and havestrengthened public relations aimed at recruitment of
women. We also carry out initiatives such as PR activities
regarding the active recruitment of women aimed at highschool career counselors, and have achieved recruitment indepartments where placement of women has been low,such as manufacturing departments. To increase the numberof female applicants for mid-career recruitment, we included
information including statistics on maternity leave, childcare
leave, and female leave in our job postings, to publicize ourwomen-friendly workplaces. We also posted information on
our numerical performance and initiatives in the Ministry of
Health, Labour and Welfare's Database on Promotion of
Women's Participation and Advancement in the Workplace,and disclose information to job seekers.
In further promotion of women's participation andadvancement, we believe that we must increase the numberof women who play central roles within the Company.
Accordingly, we will launch a new Action Plan in fiscal year
2021 to promote the recruitment, training, and retention of
female human resources. It will focus on initiatives aimed atpromoting active participation by women more than ever,going beyond recruitment to include education, training, andnetworking events for female employees.

Relationship withSociety

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees
Relationshipwith
Employees

Action Plan for Promoting Employment and Careers of Women

32

1. Period of plan: April 1, 2021 to March 31, 2026
2. Targets
Target 1: Increase the percentage of female regular employee
hires to 20% or more (achieve by fiscal year 2025)
Target 2: Increase the percentage of female regular employees
to 10% or more (achieve by fiscal year 2025)
3. Details of initiatives and implementation period
From April 2021, we will engage in the following initiatives
in sequence.
(Initiatives will be changed/added as necessary, based onprogress and on measured effects every fiscal year)(2) Awareness-building within the Company for active participation
by female employees, and support for female employees■ Awareness-raising for managers regarding training forfemale subordinates■ Implementation of training for female employees to foster
awareness of own career building■ Provision of opportunities for networking among female employees(3) Creation of comfortable workplace environments for all employees■ Awareness-raising for managers regarding work-lifebalance and diversity management■ Implementation of education to prevent harassment(maternity harassment, sexual harassment, etc.)
Unit: %

Ratio of female job
applicants 30%

Female hiring ratio
20%

As of March 2017

22.1

15.6

As of March 2018

22.9

11.6

As of March 2019

22.3

13.4

As of March 2020

22.3

6.2

As of March 2021

27.9

14.5

Targets

CSR REPORT 2021

Unit: %FY2018FY2019FY2020Percentage of female managers

1.4

1.4

1.5

Percentage of female officers

0.0

7.7

7.7

Percentage of female employees

17.0

16.8

16.6

Ratio of average years of service,
female employees vs male employees

73.8

68.4

68.4

Employment of Persons with Disabilities
Tokyo Seimitsu works to create environments in which
persons with disabilities can be socially independent andplay active roles. As a part of this, after cooperating with
Hello Work job placement centers to consider work andworkplaces matched to the individual aptitudes of persons with disabilities, we carry out pre-employment
internship training in cooperation with employment support centers, schools for special needs education, andother parties, and provide work support aimed at retention after individuals join. This fiscal year, the Company
invited a total supporter for employment of people withmental disorders to conduct a course for the development
of job supporters for people with mental disorders ordevelopmental disabilities, sponsored by the Ministry of
Health, Labour and Welfare. The course had 19 participants from four divisions that take in persons with disabilities, deepening understanding of the characteristics ofdisabilities. One employee underwent training, sponsoredby the Tokyo Foundation for Employment Services, forsupporters of persons with disabilities in the workplace,and is now providing support for work. As of June 1, 2021,
our rate of employment of persons with disabilities was
1.95% (1.92% in the previous fiscal year), falling short ofthe statutory employment rate of 2.3%. However, throughcollaboration with schools for special needs education,
our initiatives have led to hires by divisions that had norecord of accepting persons with disabilities. We willcontinue to accept trainees in administration departments
and manufacturing departments, and to advance initiatives to hire persons with disabilities.

Measures to Address Long Working Hours(1) Focus on recruitment activities to expand recruitment of women■ Setting of policies and targets to increase the hiring ratio for women■ Active public relations aimed at job seekers■ Increase in points of contact between female employees
and female job seekers● Recruitment status

Details

As measures to address long working hours, we manage
working hours through entry/exit systems and promoteindustrial physician consultations and the taking of annual
paid leave for employees who have a high level of total
working hours within a month or three months, or who have
had annual leave recommended. We introduced the entrance/exit system, which uses IC card-based employee ID
cards, at local sites other than the Hachioji Plant andTsuchiura Plant from fiscal year 2020, and strengthened
company-wide management of working hours. Under thesystem, the arrival time and leaving time reported by an
employee are checked against entry time and exit time or
PC log time to accurately assess working hours. We areable to thoroughly assess working status even whenworking from home or on holidays.
At the same time, as a concrete measure to reduce working
hours, we set Wednesdays and bonus payment days (twotimes a year) as days for leaving work on time, and broadcast this goal throughout buildings at the start of work. We
also distribute individual overtime records of subordinates
to their managers, and undertake initiatives such as encouraging restrictions on long working hours. In fiscal year
2020, however, production increased sharply due to semiconductor-related orders, and average monthly overtime
hours per person increased by 1.3 hours from the previous
year. We urged all employees to take annual paid leave in aplanned manner and to take long-term leaves, and monitored the status of leave-taking. Through this, we achieved
100% of the statutory obligation of five or more days ofannual paid leave. We will continue active efforts to reduce
working hours and will promote the taking of leave, tocreate workplaces where employees work in good health.

Award Systems

frequency rate: Frequency of accidents, expressed*1 Aasccident
the number of casualties caused by industrial accidents per

Training
New employee training

one million total working hours.

Unit: Hours

Total

1,290

Level-specific training for promoted persons (managers)

63

Level-specific training for promoted persons (section chiefs)

168

Level-specific training for promoted persons (assistant section chiefs)
Total

210
1,731

ccident severity rate: The severity of accidents, expressed as the*2 Atotal
number of working days lost per 1,000 total working hours.
S: A slogan for maintenance and improvement of workplace*3 5environments.
It stands for sort (seiri), set in order (seiton),shine (seisou), standardize (seiketsu), and sustain (shitsuke).

*4 AED: Automated External Defibrillator.
he fiscal year 2019 specified health guidance implementation*5 Trate
is given as 23.2% in the Ministry of Health, Labour andRelationship withSociety● Training achievements

Relationship with the
Global Environment

Training Achievements

Provision of Opportunities for Every
Individual to Grow

Relationship with
Shareholders and Investors

By drawing out and enhancing the strengths andcapabilities of employees through education and training,
we help individuals feel personal growth and become
motivated. Employees who feel a sense of fulfillment fromwork and leverage their abilities to the utmost are able toachieve self-actualization in the workplace, whichconnects to the performance of the company. Throughthis WIN-WIN relationship with employees, Tokyo
Seimitsu's human resource development aims to achievesustainable growth together.

Tokyo Seimitsu has a variety of award systems for improving employees' motivation. Improvement Proposal
Awards are given during the first morning assembly ofApril to commend outstanding proposals for ingenuity,
invention, ideas, and improvement, including task improvements, quality and performance improvements,
material cost reductions, safety and environmental improvements, and office work improvements.
Technical Awards recognize employees for technicalachievements that contribute to improved businessperformance, to encourage success in technology development projects. Details of excellent projects are sharedevery year at the Development Success Story Meeting,attended by employees of companies' Technology Divisions. In New Business Plan Proposal Awards aimed at theentire Tokyo Seimitsu groups, including overseas corporations, we commend outstanding ideas for new products
likely to appear in the future, based on open-minded
thinking about how future society will change.

Relationship with
Employees
Relationshipwith
Employees

Tokyo Seimitsu offers welfare benefits usable in a varietyof life scenarios, to enhance work-life balance for
employees and their families. The services apply to awide range of areas including subsidies for leisure facility
accommodations and discount services for entertainment,
leisure, dining, and health facilities.

We encourage the use of correspondence education
courses as a component of personal development, andpay 80% of training fees for employees who complete
courses within the deadline. Course takers are increasing
every year. As a result of strengthening awareness of the
program, the number of courses taken increased 70%
from the previous fiscal year. In fiscal year 2021, we willhold technical courses requested by engineers and courses on knowledge required at manufacturing sites to offer
more opportunities than ever for personal development.
We also advocate personal development through e-learning. The number of such courses taken in fiscal year 2020
increased to 3.5 times the number in the previous year.

Relationship with
Suppliers

Welfare Benefits

Initiatives for Personal Development

Relationship with
Customers

Tokyo Seimitsu creates environments where all employees
can play active roles while balancing work and life. To fully
support employees who face challenges such as child-rearing, nursing care of a family member, illness, or injury, we
have set up a unique leave system that greatly exceeds statutory standards. Employees can take childcare leave until
the child reaches age of three, with 20% of wages paid
during the leave period through age of two. Employees canalso take advantage of a working day shortened by threehours until the child enters junior high school, which aids inbalancing work with child-rearing.
We also support employees who work while providing
nursing care. As with childcare leave, employees receive
20% of wages during nursing care leave, and can shorten
the working day by up to three hours. Male as well as female
employees are now making use of the childcare and nursing
care systems. For long-term sick or injury leave, we have set
up a generous program that lets employees focus on treatment without worry by providing wage compensation for up
to two and a half years. In March 2021, we introduced
hour-based annual leave to create work-friendly workplace
where employees can easily take time off to suit theircircumstances. Many employees are making use of the
program, with 160 cases of use recorded as of June 2021.

Corporate
GovernanceInitiatives for Work-Life BalanceTokyo Seimitsu has established a variety of training
programs for employee skill development, incorporated
into our human resource development system. We perform level-specific training conducted according to careerlevel, common training for learning basic business skills,
section-specific training for acquiring specialized knowledge matched to departments' work content, and otherforms of training. We have also introduced an e-learning
system and encourage active participation in externalseminars. We offer a full line of programs for personal
development, tailored to individual employees.
Due to the cancellation of some training and the shortening of new employee training as a COVID-19 pandemic
countermeasure, total training course hours in fiscal year
2020 declined significantly from the previous year to 1,731
hours. For new employees, we used e-learning, personnel
interviews, and other means to minimize the impact of theshortened training. We provided opportunities for training
even under the COVID-19 pandemic, by means including
moving our level-specific trainings online.

Welfare's "2019 Medical Examinations on Specified Items/
Specified Health Guidance Implementation Status."
CSR REPORT 2021

33

Relationship withSociety

Relationship with the
Global Environment

Relationship with
Shareholders
and with
Investors
Relationship
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Relationship with
Customers

Corporate
Governance

Relationship with
Shareholders and Investors

34

We are working on highly transparent and proactive IR*¹ activities toenhance shareholders' and investors' understanding of Tokyo Seimitsu.
Relationship with stakeholders

ThemeHighly transparent and active IR
activities

Fair and appropriate information
disclosure

Opportunities for dialogues

Main outcomes of activities(98th Term) Regular
Shareholders' Meeting

Rate of exercise of voting rights:
85.5%

Handling coverage byinstitutional investors/analysts

Number of times: 262 total

Conferences for overseas
investors

Number of times: 2

Briefings for individual investors

Number of times:
1 (online participants: 774)

Business results briefings/press
conferences

Number of times: 4

Policy on Information Disclosure to Shareholders and Investors
By providing information on our business, strengths, strategic shareholder returns, and other matters to shareholders and investors in an
accurate, easy-to-understand, timely, and fair manner to deepen understanding of our Company, we strive to enhance our corporatetransparency and build long-term relationships of trust. In addition to releasing varied IR information on our website, we actively create
opportunities for direct dialogues with shareholders, investors, and analysts through Shareholders' Meetings, business results briefings,
and other briefings.

Along with the regular disclosure of timely disclosure,quarterly reports, and other financial information, in
response to the global expansion of ESG investment andthe revision of Japan's Stewardship Code and Corporate
Governance Code, we strive to disclose information on
both financial and non-financial aspects through our CSR
Report, describing ESG initiatives in our mid-term
management targets, and so on.
To communicate our vision for the Company from bothfinancial and non-financial perspectives in the future, we
aim to make "reports through integrated thinking."

Shareholder Bulletin
We deliver our "Shareholder Bulletin" to shareholders
twice a year. Most recently, we reported on fiscal year
2020 consolidated business results, the acquisition oftreasury stock during the fiscal year, the MI building thatbegan operation at the Tsuchiura Plant in May 2020, andthe Taiwan Application Center and Metrology Center thatbegan operation in May 2021.

Dialogue with Shareholders
and Investors
Shareholders' Meeting
Every June, we hold a Regular Shareholders' Meeting in
Hachioji City, Tokyo, where our head office is located. We
post the convocation notice on our website as early as
possible. In recent years, we have set the schedule to
avoid days on which shareholders' meetings areconcentrated. The meetings are chaired by the President
and CEO in accordance with our Articles of Incorporation.
In addition to business reports prescribed by theCompanies Act, the President and CEO reports on market
conditions, the Tokyo Seimitsu Group's business strategy,
our future business outlook, and other matters. By
providing an opportunity to receive valuable opinions andquestions from shareholders, we make the meeting avenue where shareholders and management can engage
in direct communication, to deepen understanding of theTokyo Seimitsu Group.
We held our fiscal year 2021 Regular Shareholders'Meeting on June 21, under measures to prevent the
spread of the COVID-19 infection.

CSR REPORT 2021

https://ir.accretech.jp/en/
library/business_report/main/0/
teaserItems2/01/linkList/0/link/kabunushi_97.pdf

Business Results Briefings andHandling of Coverage
In line with the release of second quarter and full-year
financial results, we conduct business results briefings for
institutional investors and security analysts, provide
overviews of our consolidated business results, future
outlook, and the Tokyo Seimitsu Group's businessstrategy by Representative Director, and field questions
from attendees. The questions and answers can beviewed on our IR website. In response to requests, we
also participate in about 200 individual interviews andmeetings for domestic and foreign investors.

IR Site for Investors

We conduct briefings for individual investors. In fiscal year
2020, we held a web-based briefing session in March
2021. The President and CEO provided a briefing centeredon the outline of the Group, our history and business,
strengths of the Company, mid-term targets, our CSR
policy, shareholder returns, and other topics, andresponded to the many questions from individual investors
in attendance.

On our website, we have established an IR section to
support the provision of information to shareholders andinvestors.
In addition to using the automatic linkage function oftimely disclosure information to enhance the immediacyof information, the section offers batch download of thelatest IR materials, business performance highlights,
smartphone compatible layout, and other features tosupport the provision of information to shareholders andinvestors.

Information Disclosure

Relationship with
Customers
Relationship with
Suppliers

https://ir.accretech.jp/en/index.html
IR: Investor Relations. This refers to actions by companies to*1 provide
shareholders and investors with information (businesscondition, financial status, business performance, outlook,etc.) necessary for investment decisions.

Relationship with
Employees

Our Company is listed on the First Section of the Tokyo
Stock Exchange, and discloses the following informationin accordance with laws, regulations, and the rules of thestock exchange via TDnet (Japan Exchange Group Timely
Disclosure network), EDINET (Electronic Disclosure forInvestor's NETwork based on Financial Instruments andExchange Act), and our IR website (The mark "★" indicatesdisclosure of English versions).
 onsolidated financial results information•C(financial results summary, summary presentation,briefing Q&A session, etc.)★
•S ecurities report★, quarterly report, extraordinary
report, confirmation report otice of convocation for Shareholders' Meeting★,•N
Internet Disclosure Information for Notice ofConvocation, resolution notice★
• Corporate governance report• Internal control report• Notice of independent officers• Electronic public notice• Articles of incorporation★
•O ther information on the business, operation, or
business performance of the Company that has
significant influence on investment decisions★

Corporate
Governance

Briefings for Individual Investors

Relationship with
Shareholders
and with
Investors
Relationship
Shareholders and Investors
Relationship with the
Global Environment
Relationship withSociety

CSR REPORT 2021

35

Corporate
Governance

Relationship with the
Global Environment
All of us will work to reduce our impacts on the environment in all value
chains, including in the life cycles of the products we provide, and will
make efforts to maintain a sustainable society and global environment.
Most important issues

Relationship with the
Global Environment
Relationshipwith theGlobal Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Relationship with
Customers

Eco-products

Development of environmentallyfriendly products

Relationship withSociety

Initiatives and Goals

Main outcomes of activities

Environmental impact
assessment based on LCA*¹

Semiconductor manufacturing
equipment
AP3000Precision measuring instruments
SURFCOM NEX (DX2/SD2)

Eco-factory

Reduction of CO2 emissions

35% reduction compared to
FY2018 by FY2025

23% reduction compared to
FY2018Promotion of resource
conservation (water)

5% reduction compared to
FY2019 by FY2024

16% reduction compared to
FY2019Waste recycling

Recycling rate of 95% or higher

98% final disposal amount 13t

Chemical substances control

Substitution of organic solvents

Reduction in amount of acetone used

Environmental management system

Internal environmental audits

Two times/year

Basic Policy on the Environment
In 1997, Tokyo Seimitsu established its Basic Environmental Philosophy under the concept of "Manufacturing is possible only when the
global environment is conserved." This basic philosophy is expressed in our Basic Environmental Policy, and is embodied in our Basic Policy
so that all employees can put it into practice in business activities. Tokyo Seimitsu conducts all of its business activities on the basis ofthese philosophies and policies. Through our products and business activities, we aim to reduce our electricity usage and CO2 emissions,promote resource conservation, control total waste generation and chemical substance emissions, and contribute to the achievement of asustainable society.

Environmental Policy

New Five-Year Plan

Tokyo Seimitsu sets environmental targets at both of its
plants, and engages in environmental management, in
accordance with the Environmental Policy set by officers
in charge of the environment. We promote continuous
environmental conservation activities that span theentirety of development, design, production, and service.
Information on our Basic Environmental Philosophy, Basic
Environmental Policy, and Environmental Policy is available
on our website.

In fiscal year 2020, we proceeded with a new five-yearplan based on our own reduction targets. However, we
revised our reduction targets following the announcementby the Japanese government on April 22, 2021 that it
would raise its fiscal year 2030 greenhouse gas reduction
targets. We will extend our target fiscal year by one year
and reduce CO2 emissions by 35% compared to fiscal
year 2018 by the end of fiscal year 2025.
This target is a number that we cannot achieve simply by
conserving electricity. Accordingly, we are making
reductions in our electricity usage by adopting the use ofelectricity derived from renewable energy and low-carbon
electricity, switching to high-efficiency equipment, andother means.

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

Environmental Targets: Looking Back on
the Previous Five-Year Plan
In our previous five-year plan, we worked to reduce
production volume intensity by 5% over five years.
Although we achieved a 5% reduction in CO2 emissions,
we did not achieve our electricity consumption target.
Conventional activities to achieve targets will not meetthe emissions reductions required by the Paris
Agreement.
We decided that aggressive targets aimed at 2030 are
needed in our future initiatives to reduce CO2 emissions.

● CO2 emissions reduction: five-year plan and evaluation
Year set

36

Theme

2015

Starting fiscal year
FY2015 - FY2019- Target fiscal year

Reduction target

Evaluation

5% reduction compared to
FY2014 by FY2019(1) Electric power consumption Not achieved
production volume intensity(kwh/million yen)(2) C O2 emissions production volume Achieved
intensity (t-CO2/million yen)

CSR REPORT 2021

● CO2 Emissions reduction: New five-year plan and progressYear set2020 → Revised 2021

Starting fiscal year Target fiscal year

FY2020 - FY2025

35% reduction comparedto FY2018 by FY2025
Benchmark emissions 12,312 (t-CO2)
Reduction target
8,003 (t-CO2)

FY2020
Performance

9,524 (t-CO2)(23% reduction)

Environment Management System (EMS)
We engage in environmental management under anenvironmental management system (EMS*2), with theofficer in charge of the environment serving as the person
responsible for environmental management under thepresident, who is the chief executive officer forenvironmental conservation activities.
We have set up environmental subcommittees at both the
Hachioji Plant and Tsuchiura Plant, and undertake

environmental management with the full participation of
subcommittee members appointed by departments. We
do so through an EMS that is based on our Environmental
Management Manual, which conforms to ISO
14001:2015*3).

PresidentInternal Environmental
Audit Team

<Environment
Management
Committee>

Chairperson of the Environmental
Management Committee

Vice Chairperson of theMetrology Company
Environmental Management
Committee

Semiconductor Company
Person responsible forenvironmental management

Metrology Company
Person responsible forenvironmental management

Environmental
Secretariat

Environmental
Secretariat

Hachioji site

Unit divisions

Unit divisions

Unit divisions

Environmental
Subcommittee

Tsuchiura site

Our SURFCOM NEX surface texture and contour
measuring instrument has undergone a significant renewal
into SURFCOM NEX (DX2/SD2), which combines highefficiency, versatility, and reliability. Throughimprovements to the tracing driver and electric column
drive mechanism, we achieved an impressive drive speed
1.6 times that of conventional machines of the same typein the X-axis (left/right) direction and 5 times in the C-axis(up/down) direction.
In combination with a newly developed hybrid detector
capable of simultaneously measuring surface texture andcontours at up to 26mm in the Z direction, the product isable to efficiently measure any workpiece in a short time.
As a result of this, we were able to reduce CO2 emissions
from the equipment during use by about 10%.

Relationship with
Shareholders and Investors

Internal Environmental Audits

AP3000SURFCOM NEX (DX2/SD2)

Relationship withSociety

Life Cycle Assessment (LCA) during
Product Development

Relationship with the
Global Environment
Relationshipwith theGlobal Environment

We carry out periodical internal environmental audits
twice a year to confirm the status of enforcement, as
stipulated in the Environmental Management Manual.
Based on a checklist collecting recommendations madeevery year, we conduct audits through an audit team of
two or three people headed by a lead auditor. Auditors
renew their internal audit qualifications yearly throughexaminations. The audit team leader is appointed by thechairperson of the Environmental Management Committee
from among auditors with sufficient experience andcapabilities.

Eco-products

Relationship with
Employees

Unit divisions

Environmental
Subcommittee

Precision measuring instruments

Relationship with
Suppliers

Vice Chairperson of the
Semiconductor Company
Environmental Management
Committee

Safety and HealthCommittee

CSR Department

The AP3000 is a next-generation ultra-high-performance
probing machine developed as a successor to theUF3000EX. It achieves high precision, high throughput,
low vibration, and quietness. We succeeded in reducing
CO2 emissions from life cycle assessment (LCA) by about
12% compared to the UF3000EX. (The number of years inservice is calculated as 15 years.) The product carries
forward the functions and operability of the previous
model and maintains compatibility with recipe and map
data, to offer safe and reliable ease of use.

Relationship with
Customers

Safety and HealthCommittee

Risk Committee,
Compliance Committee

Committee

Development of Environmentally Friendly
Products: Semiconductor Manufacturing
Equipment

Corporate
Governance●T okyo Seimitsu Co., Ltd. Environmental
Management Structure Organizational Chart

this method are set as essential evaluation items inproduct development. By also carrying out LCA for
products currently in production, we make improvements
to our conventional products and conduct comparativeevaluations of these with in-development and new
products.

Tokyo Seimitsu recognizes its responsibility for theenvironmental impacts of its products over their entire life
cycles. In 2016, the Technical Working Group (Technical
WG) of the CSR Committee unified the calculation
standards for converting emissions to CO2 at every stage
from product manufacturing to disposal (life cycle
assessment: LCA). The CO2 emissions derived through
CSR REPORT 2021

37

Overall Image of Environmental Impacts

Relationship withSociety

Relationship with the
Global Environment
Relationshipwith theGlobal Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Relationship with
Customers

Corporate
Governance● Overall Image of Environmental Impacts in FY2020

38

Environmental impacts of Tokyo Seimitsu
INPUT

Eco-factory

OUTPUT

EnergyDevelopment
and design

CO2

Scope 1 + Scope 2
Total usage

281,133GJ

Scope 2
Electricpower

Gas (LPG)
Volatile oils
Kerosene
Light oil

706GJ
425GJ
1GJ
71GJ

Electricity

9,449t-CO2
42t-CO2
33t-CO2

Fuel

Materials andprocurement

169,873m(general sewerage)

169,873m

3

Confirmed to meet standards forindustrial effluent.
Values are as follows.

Manufacturing

BOD
Nitrogen content
Iodine consumption
Suspended solids
n-Hexane extract
Phosphorus content

20,818m

3149,055m

3

Packing anddistribution● Reuse of packing material● Planned operation● Prohibition ofengine idling

8.2kg or less
4.1kg or less
1.4kg or less
16.5kg or less
0.1kg or less
0.2kg or less871t

WastesFinal disposal amount
Recycling rate

98.5

Eco-products
Transport anddelivery◦Transport anddelivery equipment◦Transport energy

Operationof products◦Electric power◦Water ◦Air
◦Clean rooms

After-sales
service◦Operating rate
◦Equipment
service life

Disposal◦Environmental
contaminants

Environmental impacts of customers

CSR REPORT 2021

2

Plant effluent● Green procurement● Reduction of
packaging materials

3

Industrial
water(groundwater)

9,524t-CO

Gas● Flowline improvement● Inspection automation● Reduced power
consumption

Water

City watersupplyTotalemissions

279,930GJ

Scope 1

Total
usage

● Paperless work
● Reduction incomponents

13t%

● Atmospheric gas discharge 		

Eco-factory

Other Gases

Previous five-year plan

New five-year plan

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Performance Performance Performance Performance Performance

9,524

Plan

8,240

Electric power
used (kwh)

24,197 25.163 25,765 25,448 28,843 29,500

CO2 emissions
equivalent(t-CO2/million yen)

0.204

0.181

0.160

0.191

0.129

―

Promotion of Resource Conservation

Water

Our production volume of semiconductor
manufacturing equipment that uses water
is increasing. These use large amounts of pure water, andproduce an increasing amount of wastewater. Tokyo
Seimitsu collects and filters a portion of water that earlier
had been discharged, for reuse in producing pure water.
The area of the Hachioji Plant, where we manufacture
semiconductor manufacturing equipment, and the area of
the Tsuchiura Plant, where we manufacture precision
measuring instruments, are in the Low-Medium class ofwater stress according to the Aqueduct tools of the World
Resources Institute (WRI). As a measure to reduce ouramount of water usage, we are examining the reuse ofwastewater discharged in the process of producing purewater, and are introducing equipment for this.

● Water consumption production volume intensity
reduction plan and progressYear set
Starting fiscal year Target fiscal year

2020
FY2020 - FY2024

FY2020
Performance

5% reduction compared to
FY2019 by FY2024
Benchmark emissions
2.74 (m³/million yen)
2.29 (m³/million yen)
Reduction target
2.60 (m³/million yen)
(16% reduction)● Water usage
New fiveyear planPrevious five-year plan

FY2016 FY2017 FY2018 FY2019 FY2020
Water usage (m³)
142,629 149,544 157,375 171,706 169,873
Water usage Production
volume intensity
2.29
2.20
2.05
2.74
2.29
(m³/million yen)Paper

As paper uses many resources, including
wood and water, we believe that reducing
the amount of paper that we use will contribute to theconservation of the global environment. We are advancing
initiatives to gradually create an environment in which
every process in the Company can work using electronic
data. We will continue making efforts toward reduction.

●P aper procurement volume production volume
intensity reduction plan and progressYear set
Starting fiscal year Target fiscal year

Benchmarkprocurement volume
Reduction target

2020
FY2020 - FY2024

FY2020
Performance

5% reduction compared to
FY2019 by FY2024
0.443 (kg/million yen)
0.386 (kg/million
yen)
0.421 (kg/million yen)
(13% reduction)● Paper purchasing volume
New fiveyear plan
FY2019 FY2020

Previous five-year plan
Paper purchasing
volume (kg)
Paper purchasing
volumeProduction volume
intensity (kg/million yen)

FY2016FY2017FY201829,82731,159 30,800 27,766 28,622

0.501

0.458

0.401

CSR REPORT 2021

0.444

0.386

Relationship withSociety

Other Gases Tokyo Seimitsu also manufactures freezers
that use HFC*⁴ gases, for use in semiconductor
manufacturing equipment. We properly manage therefrigerant gas, discharging almost no gas to the outside.
We are also switching to gas refrigerants that have low
global warming coefficients.
As chemical substances that we use are also
environmental pollutants, we properly manage these inaccordance with relevant laws and regulations. To
respond to emergencies such as leak accidents, we
conduct emergency scenario training and work to addressenvironmental pollution.

0.0
0.0
11.0
0.0
0.0

Relationship with the
Global Environment
Relationshipwith theGlobal Environment

Emissions (t-CO2) 12,176 12,311 12,312 11,976

FY2020Relationship with
Shareholders and Investors● Tokyo Seimitsu's CO2 emissions

0.0
0.0
2.0
0.0
0.0

Relationship with
Employees

The greenhouse gases emitted by Tokyo Seimitsu consist
primarily of the CO2 equivalent of electricity purchased andused in the operation of the Hachioji Plant and Tsuchiura
Plant. As a global warming prevention measure, we arefocusing on conserving electricity. We are systematicallyswitching to LED lighting, installing human detection
sensors and solar panels, and upgrading to high-efficiency,
energy-saving air-conditioners, compressors, and otherequipment. To effectively achieve CO2 reductions, we
adopted renewable electric power and low-carbon
electricity in fiscal year 2020, and have confirmed a CO2
emissions reduction effect. We will make all possible efforts
to reduce carbon and move closer to a carbon-free society.

0.0
0.0
9.4
0.0
0.0

Unit: t-CO2

FY2019Relationship with
Suppliers

Electricity and CO2

0.0
0.0
0.0
0.0
0.0

FY2018Relationship with
Customers

Promotion of Global Warming Prevention(Toward a Carbon-Free Society)

0.0
0.0
2.6
0.0
0.0

FY2017

Corporate
GovernanceTokyo Seimitsu is a machinery manufacturer that performs
tooling of precision parts in-house. Over 99% of theenergy that we consume consists of power for our
production plants, and the amount of water that we use
for cutting and processing is considerable as well.
Production volume is increasing for products that process
semiconductors using water, as is the volume of waterused for inspection, adjustment, test processing, andother work. Accordingly, we are continuing efforts to
reduce our usage of electricity and water.
Moreover, as the equipment has large numbers ofmechanical parts and many paper drawings used for parts
processing and assembly, we are working to use
electronic data in processing and assembly to reduce theuse of paper, among other initiatives to cut resource
consumption. We are also making efforts to recycle metal
processing scrap and waste liquid from processing as
much as possible.
We are undertaking efforts to reduce CO2 emissions fromelectricity used at plants by 35% compared to fiscal year2018 by the end of fiscal year 2025, as a short-termtarget. For fiscal year 2021, we expect the CO2 reduction
to be 30%.

CH4
N2O
HFC
PFC
SF6

FY201639

Waste Recycling

Corporate
Governance

We are making efforts to reduce waste, such as replacing
cardboard boxes used for packaging with reusable plastic
boxes. All waste from the Hachioji Plant is recycled, bymeans including thermal recycling.

● Waste recycling plan and progressYear set

2020

Starting fiscal year Target fiscal year

FY2020 - FY2024

FY2020
Performance

TargetRecycling rate of 95% orhigher by FY2024

98.5%(95% or higher)

FY2016FY2017FY2018FY2019FY2020Waste Recycling
Volume (t)

1,157

831

1,010

905

872

Recycling rate (%)

96.3

98.3

99.1

98.6

98.5

With regard to chemical substances that we use and thatare contained in component materials, we comply with thelaws and regulations of Japan and of the regions to which
we export. For chemical substances that are not regulated,
we perform management based on voluntary standards tominimize impacts on people and the environment.

Chemical Substances Control Based on
Voluntary Standards
In our internal regulations, we stipulate substances withthe potential to pollute the environment, and mandate
notification to the person responsible for environmental
management when handling such substances. We assess
the amount handled, the storage location, maximum
storage capacity, and other matters for each substance,
prepare SDSs*⁵ and emergency response equipment, andconduct periodic training to respond to unforeseen
circumstances.
We are also examining alternatives to organic solventsand other hazardous chemical substances, along withways to eliminate or reduce the hazards.

History of Our Environmental Conservation Activities
1995
1996 ● July		Start of education and training for environmental
conservation activities●September	Establishment of Environmental Committee
1997 ● February	Formulation of Environmental Philosophy
Start of environmental impact surveys at theHachioji Plant, Tsuchiura Plant, and Company
divisions● May		Formulation of Environmental Management
Manual1998 ● March	Acquisition of ISO 14001 certification at Hachioji
Plant and Tsuchiura Plant●September	Establishment of MOTTO (Code of Conduct)
1999 ● November	Shut-down and subsequent dismantling of waste
incinerator (Semiconductor Company)

Relationship withSociety40

New fiveyear planPrevious five-year plan

Relationship with the
Global Environment
Relationshipwith theGlobal Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Relationship with
Customers● Waste recycling volume/rate

Chemical Substances Control

CSR REPORT 2021

2000
2000 ● March	Start of operation of CMP, back grinder, andother waste water treatment facilities(Semiconductor Company)● May	Dismantling of heavy oil boiler-based heating
equipment and underground heavy oil tank
(Semiconductor Company)
2001 ●April	Renewal of ISO 14001 certification● May	Start of use of new main building at Hachioji
Plant
2002 ● March	Discontinuation of in-house incinerator(Metrology Company)
2003 ● March	Formulation of ACCRETECH Group Green
Procurement Guideline
2004 ● February	Upgrade of air conditioning equipment fromheavy oil boiler to electric equipment (Metrology
Company)●August	Formulation of ACCRETECH Group Code of
Conduct●September	Issuance of Environmental ReportSpecified Chemical Substances Control

Control of Chemical Substances
Contained in Products

manufacturing, transport, sales, use, disposal, reuse) over thelife cycle of a product or service.

*2 EMS: Environmental Management System
ISO 14001 : International standards for management systems*3 andstructures for engaging in environmental conservation
within an organization*4 HFC: Hydrofluorocarbon. An alternative to CFCs.
SDS: Safety Data Sheet, which collects chemical substance*5 name,manufacturer name, handling method, types of risks

PRTR: Pollutant Release and Transfer Register. A system for*6 thenotification of releases and transfers of chemical sub-*stances.

7 PFOA: Perfluorooctanoic acid.

2006 ● January	Implementation of hexavalent chrome-free●April	Completed phase-out of halon fire extinguishers● June		Implementation of "COOL BIZ" policy● October	Start of production using lead-free solder in new
products (Semiconductor Company)

2008 ● March	Receipt of letter of commendation from the Fire
Chief
2009 ● November	Renewal of approval of Hachioji Plant as certified
fire safety building

2011 ● June
Completion of Hachioji Plant No. 5● November Revision of Environmental Policy
2012 ● July

Start of cutting and grinding tool business2013 ● March	Acquisition of ISO 14001 certification for cutting
and grinding tool business2015 ● June	Installation and operation of solar panels at
Hachioji Plant No. 5
2016 ● May
Completion of Hachioji Plant No. 6● November Installation and operation of solar panels at
Hachioji Plant No. 62017 ● June

Acquisition of 2015 ISO 14001 certification

2020 ● March	Switch to low-carbon electricity for a portion ofelectric power at Hachioji Plant●April	Completion of MI building of Tsuchiura Plant● June	Installation of solar panels at MI building ofTsuchiura Plant● November	Switch to low-carbon electricity for a portion ofelectric power at Tsuchiura Plant

Relationship with the
Global Environment
Relationshipwith theGlobal Environment

2007 ● February	Receipt of Japan Machinery Federation
Chairman’s Award for laser dicing machine,
under the Energy-Efficient Machinery Awardsystem2010 ●August	Adopt-A-Road commendation from Tokyo
Metropolitan Government

Relationship with
Shareholders and Investors

2005 ● February	Discontinuation of specified facilities at
Tsuchiura Plant●April		Receipt of commendation from Ibaraki Labour
Bureau for workplace safety●April		Start of use of new Hachioji Plant and new
Tsuchiura Plant● June		Acquisition of 2004 ISO 14001 certification● July		Briefing for suppliers on hexavalent chrome-free2010

Relationship with
Employees

2005

Relationship with
Suppliersand hazards, physical characteristics, environmental impacts,
safety measures, emergency response, emergency measures,and other information for chemical substances. Under the
PRTR Law, manufacturers and other companies are required
to aggregate amounts of chemical substance emissions andamounts of waste transfer, and to report these to the national
government via local government bodies, with mandatory
attachment of SDSs.

Relationship with
Customers

We conduct briefing sessions for suppliers to request
strict control and reporting related to chemical substances
contained in the parts we procure. So far, over 400
suppliers have participated. With the cooperation of
suppliers, since fiscal year 2016 we have conducted
cloud-based surveys on the RoHS Directive, REACH
regulations, and other topics.
Since July 2017, we have managed six substances related
to Metrology Company products in accordance with the
RoHS Directive. Our export products for the EU region are
100% compliant with the directive. We are also examining
the four types of phthalic acid that will be added to the
RoHS Directive from July 2021. We have confirmed
conformity for these substances and have begun
shipments.
While Semiconductor Company products are exempt fromCA (Life Cycle Assessment): A method for quantitatively*1 Levaluating
environmental impacts at each stage (procurement,

Corporate
Governance

Of chemical substances that we handle, we havesubmitted notifications for two substances that exceed
standard amounts for substances specified by the PRTR*⁶
Law. In addition, at the Hachioji Plant we use and submit
notifications for five chemical substances to beappropriately controlled according to the Tokyo
Metropolitan Environmental Security Ordinance.

the RoHS Directive as large-scale stationary industrial
equipment, we are gradually adapting these to thedirective as well. In fiscal year 2018, we established a
RoHS Analysis Room to analyze chemical substances
contained in procured parts.
Our products across the Company comply with the
PFOA*⁷ regulations that were added to the POPs
regulations in July 2020. We export 100% compliant
products to areas where the regulations are enforced.

Relationship withSociety

CSR REPORT 2021

41

Corporate
Governance

Relationship with Society
As we contribute to society through our business activities, we will clarify
issues and needs in different regions through dialogues with communities
and will advance social contribution activities to resolve these matters,
to build a healthy and sustainable society as a corporate citizen.
Relationship withstakeholders

Relationship withSociety withRelationshipSociety

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Relationship with
Customers

Hachioji City
(local government)

42

Main expectationsand values

Community/System

Main outcomes of activities

Coexistence withlocal companies

Tokyo Federation of Labor Standards
Associations, Hachioji Branch

Public Relations Department, regular public
relations newsletter published 5 times/year

Fire prevention
campaign

Hachioji Firefighting Four-Party
Cooperative

Member of the Japan Association for Safety of Hazardous Materials,
Vice-Chair of the Fire Prevention Management Study Group

Environmental
conservation activities

Hachioji City Adopt-A-Road Program

Cleanup of the rotary on the east side of
JR Kita-Hachioji Station: 1 time, 27 participants

Hachioji City
(region)Support for students

Nihon Kogakuin College of Hachioji

January 2020 lecture

Tsuchiura City
(local government)

Environmental
conservation activities

Tsuchiura City Pollution Control
Agreement

Submission of pollution control plan
Submission of business plan/implementation report

Eco-partner Agreement

Cleanup of Nakanuki Park: 51 times, total 102 participants

Industry group

Prosperity of theindustry

ISO Technical Committee

TC213 WG: 2 participants

Japan Precision Measuring Instruments
Manufacturers Association

Chairman: Hitoshi Yoshida, President and CEO,Tokyo Seimitsu

Learning the Way of Manufacturing in Hachioji

Relationship with Local
Communities (Hachioji Area)
Joined Tokyo Federation of Labor
Standards Associations, Hachioji Branch
Circumstances surrounding labor are undergoing change
today as social and economic frameworks transform rapidly.
Labor-related laws and regulations are accordingly subject
to frequent enactment and amendment. The Hachioji
Branch of the Tokyo Federation of Labor Standards
Associations, together with the Hachioji Labor Standards
Inspection Office and member companies under its
jurisdiction, promotes dissemination of the Labor Standards
Act, Industrial Safety and Health Act, and industrial
accident-related and other relevant laws and regulations, aswell as improvement of labor management and occupational
accident prevention activities. By doing so, it serves as anorganization that strives for the creation of safe, healthy,
and comfortable workplaces, the improvement of worker
welfare, the enhancement of labor productivity, and thedevelopment of a healthy industry.
Our Hachioji Plant, a member company of the Hachioji
Branch, belongs to the branch's General Affairs and Public
Relations Department, where our plant plays a role instrengthening cooperation among member companies
through the release of regular public relations.

Cooperation with the Hachioji Fire Department
The Hachioji Firefighting Four-Party Cooperative conducts
regional fire prevention campaigns and other activities incooperation with the Hachioji Fire Department. The
Hachioji Plant General Affairs Department is involved in
the administration of regional firefighting as a member of
the Japan Association for Safety of Hazardous Materials
and as the Vice-Chair of the Fire Prevention Management
Study Group.

Hachioji City Adopt-A-Road Program
In this sort of "adoption" program, local residents and privatecompanies carry out beautification activities for roads, parks,
or other public facilities, caring for these as if their own
children, while receiving tools, materials, and support from the
CSR REPORT 2021

local governments with jurisdiction over the facilities.
Since 2004, the Hachioji Plant has implemented such activities
into a part of the curriculum for new employee group
education every year, focusing on the rotary on the east sideof JR Kita-Hachioji Station. Placing priority on preventing the
spread of the COVID-19 infection, activities were conducted
one time in fiscal year 2020, with 27 participants.

Adopt-A-Road Program, Hachioji City municipal website
https://www.city.hachioji.tokyo.jp/kurashi/life/001/001/016/p006890.html

VOICE

From a Participating Employee
Back-end Process Technology Department,
Technology Division, Semiconductor
Company

Reia Ootomo

Around Kita-Hachioji Station, where I was
in charge of cleanup, I was very disappointed to see so many cigarette butts,
empty cans, and other litter. As there areno trash cans around the station, I want people to take theirown trash away with them. Kita-Hachioji Station is used bymany people, including Tokyo Seimitsu employees, local residents, and workers at other companies. I came to see that the
Adopt-a-Road activity is very important in making the station
an area that everyone can use comfortably. Through the activity, I was also able to interact with people I had not met fromother divisions, which made the time fulfilling for me. This is mysecond time taking part in activity. I hope to continue doing so
on a regular basis to help create a comfortable environment.

Learning the Way of Manufacturing in Hachioji
Hachioji City, part of the Tokyo metropolitan area, has many
fundamental technologies-related companies with advanced
technological capabilities, and companies, research institutes,
and universities with outstanding product development
capabilities. The proportion of these is particularly large inthe two high technology fields of electronics and devices

● Pollution Control Measures
Air pollution preventive measures, water pollution preventive measures,
noise preventive measures, odor preventive measures
Groundwater depletion preventive measures, waste treatment measures,
specially controlled industrial waste (PCB-containing waste), disposal ofhigh-voltage capacitors (PCB-containing items), soil pollution countermeasures, greening measures, measurement and reporting● Location of Lake Kasumigaura and the Tsuchiura Plant

Tsuchiura

Kasumigaura

From a Participating Employee
General Affairs Section, Tsuchiura Plant,
Metrology Company

Toshihiro Momo

Nakanuki Park in Tsuchiura City is a place
where parents, children, and senior citizens
gather for walks and exercise on weekdays
and holidays. As the park is located within
an industrial park, many trucks drive nearby and often park on the streets beside the park. Most litter
picked up is not from users of the park but from vehicles
parked on the streets. As this is not penalized, the situation has
unfortunately been left unchecked. However, since we began
the cleanup activity, litter has been decreasing. Even if it will bedifficult to reduce the litter to zero, I hope to keep up the activity to reduce litter as much as possible.

CSR REPORT 2021

Relationship withSociety withRelationshipSociety

Tokyo Seimitsu Tsuchiura Plant

Tsukuba

VOICE

Relationship with the
Global Environment

Our Company has concluded a pollution control agreementwith Tsuchiura City, aimed at the atmospheric environment,water environment, noise and vibration prevention, and theprevention of pollution from business activities. Our
Company, located in Kandatsu Industrial Park, has also
signed a tripartite agreement that includes the city of
Kasumigaura. For the protection of Lake Kasumigaura, too,
we will maintain our understanding of the content of thepollution control agreement and will continue taking all
possible measures to prevent pollution in line with our Basic
Philosophy and Environmental Policy.

The Tsuchiura Plant
joints other companies
near Nakanuki Park forweekly cleanups in andaround the park. Since
2006, we have also
carried out cleanups ofareas around ourdivisions on our own
every Monday. In fiscal
Community beautification activities
year 2020, we did so 51
times with participation
by a total of 102 employees. Over the years of thesecleanup activities, awareness has increased among the
local community. Streets around the park that had been
covered in litter have improved markedly. Despite this, as
litter from trucks parked illegally at night and other trashhave not disappeared, we will continue our activities to help
beautify public parks and improve public manners.

Relationship with
Shareholders and Investors

Tsuchiura City Pollution Control Agreement

Community Beautification Activities

Relationship with
Employees

Based on a fundamental goal of achieving a future"Tsuchiura, a city on the water where people and natureexist and live together," the city of Tsuchiura has set anaction policy for specific efforts and is developing actions
aimed at environmental conservation and creation.

Reference: Eco-partner Agreement, Tsuchiura City municipal website
https://www.city.tsuchiura.lg.jp/page/page004517.html

Relationship with
Suppliers

Relationship with Local
Communities (Tsuchiura Area)

In March 2016, the Tsuchiura Plant
signed the Tsuchiura Eco-Partner
Agreement, which takes a leading role
in reducing greenhouse gas emissions
and waste in the area around TsuchiuraCity. Every April, the plant submits animplementation report that summarizes
the activities of the previous fiscal year
and an implementation plan for thecurrent fiscal year, which are madeavailable on the Tsuchiura City municipal website. Covered
content includes the efficient use of electricity and otherenergy in business activities, the reduction of garbage frombusiness activities, initiatives to raise awareness ofenvironmental conservation in the local community, andplans and implementation reports concerning environmental
education and awareness-raising activities for employees.

Relationship with
Customers

Lecture by Hachioji Plant Manager(January 2020)

Nihon Kogakuin College ofHachioji, 2019-2020 Recordof "Learning the Way of
Manufacturing in Hachioji"
https://neec.meclib.jp/nhac_
monodukuri/book/

Tsuchiura Eco-Partner Program (Human
Development: A City where Every Person
Acts with Consideration of theEnvironment – Partnership)
Corporate
Governanceand electrical machinery.
Every year since fiscal year 2016, the Nihon Kogakuin College
of Hachioji has invited industry leaders from manufacturing
and other companies in Hachioji City as lecturers for a
special class (Learning the Way of Manufacturing in Hachioji)that communicates to students preparedness for becoming
members of society, the appeal of manufacturing and of
Hachioji, and other topics. Students attending the class aim
to put it to use in future classes, practical training, job
hunting, and career design, to achieve their dreams andgoals. Our Company took part in the first class, and again in
the fourth class in January 2020. On the theme of "Current
Status of State-of-the-Art Semiconductor Manufacturing
Equipment: Supplied from Hachioji to the World," the Tokyo
Seimitsu Hachioji Plant Manager drew on smartphones,
automobiles, rockets, and other familiar objects to talk about
how our semiconductor manufacturing equipment and worldclass precision measuring technologies are used in the
manufacture of cutting-edge technology products that movepeople's lives forward. Attending students expressedsurprise at the depths ofTokyo Seimitsu's
involvement in theindustrial development ofJapan.

43

Relationship withSociety withRelationshipSociety

Relationship with the
Global Environment

Relationship with
Shareholders and Investors

Relationship with
Employees

Relationship with
Suppliers

Relationship with
Customers

Corporate
Governance

Relationship with Industry Group

44

Tokyo Seimitsu is applying its accumulated know-how andinformation not only to its own business but also to relatedorganizations, for the further prosperity of the industry.

Semiconductor Equipment Association ofJapan (SEAJ)SEAJ engages in a wide range of activities that encompass
statistical surveys, surveys of industry issues and newtechnologies, holding seminars and lectures, and promotionof standardization, to promote the sound development of
the semiconductor manufacturing equipment industry andits related industries. We also cooperate with thedevelopment of the semiconductor manufacturing
equipment industry, with a number of our employees taking
part in SEAJ.

ISO Technical Committee
Headquartered in Geneva, Switzerland, the International
Organization for Standardization (ISO) was formed for thehandling of products under common standards and rules tofacilitate international trade. The organization has
established over 20,000 international standards. Its genrespecific Technical Committees, numbering over 300, set
standards for products in their respective genres. Amongthe committees relevant to our Company is TC213, which
deliberates and establishes standards related to"dimensional and geometrical product specifications andverification." Here, rules involving length standards, drawing
dimension description methods and measuring instrument
specification standards for the methods, inspection
methods, and other matters are divided among Working
Groups (WGs) and discussed.
Two employees of our Company have been appointed as
representative members from Japan. They are currently
taking part in WGs for coordinate measuring machine
standards, roundness measuring machine standards,
surface texture measuring instrument/filter standards, andmeasurement uncertainty standards. The venue for TC213's
twice-yearly regular meetings rotates among countries.
Under the COVID-19 pandemic, deliberations on new
pending standards and on revisions to establishedstandards are taking place online. In deliberations overroundness measuring machine standards, we lead
discussions as the Project Leader for international
conferences, and promote international standardization
based on proposals from Japan.

The Japan Society for Precision
Engineering
The Japan Society for Precision Engineering is an academic
society that contributes greatly to the development ofindustry and to the improvement of production
technologies. It holds academic lectures, seminars,
symposiums, and plant tours, and publishes academic
journals. Tokyo Seimitsu participates in the Expert
Committee for Intelligent Nano-Measurement*¹ and theExpert Committee for Convergence Engineering*², while
also serving as the accounting auditor for the former
committee. In fiscal year 2021, as part of the activities ofthe society, we are taking part in relevant international
conference symposium sessions as Co-Chair, and areworking toward international exchanges and industryacademia collaboration.

CSR REPORT 2021

Japan Precision Measuring Instruments
Manufacturers Association
The Japan Precision Measuring Instruments Manufacturers
Association holds comprehensive exhibitions concerning
measurement and all aspects of it, promotes
standardization that contributes to the improvement oftechnology and quality, and holds seminars in collaboration
with other organizations, among other activities that
contribute greatly to the promotion of Japan's precision
measuring instrument industry. We take active part in
subcommittees, committees, exhibition management, andso on, making major contributions to the development of
the precision measuring instrument industry.
Since fiscal year 2020, Tokyo Seimitsu President and CEO
Hitoshi Yoshida has served as the Chair of the industry
association. The JIMTOF2020 exhibition, held every otheryear, was held online in 2020 because of the COVID-19
pandemic. We participated in the event to contribute toindustrial development in this field.
In fiscal year 2021, we are taking part in planning for aseminar to be held by the association at the scheduled
Measuring Technology Expo 2021. We also perform editing
work for JIS guidebook from the CMM*³ Subcommittee.
xpert Committee for Intelligent Nano-Measurement: An*1 Eexpert
committee on technological developments including

intelligent data processing, traceability, and standardization.

xpert Committee for Convergence Engineering: An expert*2 Ecommittee
on new design and productive techniques that digitize object information from 3D shape scanning technologies(industrial X-ray CT and 3D surface scanners) and utilize that
information in digital engineering systems (CAD, CAM, CAE).

 MM: Coordinate Measuring Machine, a measuring machine*3 Ccapableof measuring objects in three dimensions.

Affiliated companies of the Tokyo Seimitsu Group are introduced below.

Introduction to Group Companies 1
Tosei Engineering Corp.
Company Profile■ Date of establishment: April 15, 1969
 -6 Higashinakanuki-machi, Tsuchiura-shi,■ Head office: 4
Ibaraki■ Representative: Katsushi Goto
■ Sales: 12,081 million yen (FY2020)■Employees: 584 (as of March 31, 2021) Note: E xcludes our employees stationed to othercompanies; includes employees of other companies
stationed at our companies.
■ URL: https://www.toseieng.co.jp/company/ plants and 13 service bases in Japan,■ Bases: 43 plants and 10 bases overseas

participants (100% participation rate) took part in educationon the topics of information security, harassment, andmedia relations.

● Continuous Practice of Small-group Activities
All of our employees maintain a high everyday awarenessof issues and engage in voluntary improvement activities.
In recent years, our Niigata Plant has conducted smallgroup activities with participation by all employees, using
small PDCA cycles to effectively make refinements under
employee-proposed themes such as manufacturing process
improvements, quality enhancement, and workplaceenvironment improvements. All employees raise issues fromthe perspectives of worksites and users, and develop these
into mechanisms for continuous improvement.
At the Kandatsu Plant, we actively engage in improvement
activities that extend beyond workplace improvements to
productivity and quality improvements and reduction of
man-hours. By working as a team to solve problems in theworkplace and advance the company, we also hone ourpractical capabilities. Small-group activities create more
opportunities to demonstrate capabilities, an outcome
which increases motivation, generates a sense of
responsibility, and contributes to raising awareness ofcompliance across the company.

●C ontinuous Improvement through an
Integrated Management System

Business Overview
Tosei Engineering Corp. was founded in 1969 as a Group
company of Tokyo Seimitsu Co., Ltd. to provide service forTokyo Seimitsu products and to develop and manufacture
equipment for automation and labor-saving inmeasurement. Since our founding, we have worked toaccumulate technology and develop business through theprovision of precision measuring instruments and services
for these in the field of precision processing, under theconcept of "No measurement, no manufacturing." Inparticular, we have specialized in the development andmanufacture of automatic measuring instruments used on
production lines for automobiles, bearings, home
appliances, and electronic products. We have also entered
the semiconductor manufacturing equipment field on thebase of these precision technologies, and are now growing
this business into one of our main divisions.
Since our founding, we have focused on providing proprietary
technology and services under the motto "Customer First." Wewill continue working to become a one-of-a-kind company
that can promptly meet customers' needs.

CSR Topics●C ompliance and Communication ofInternal Regulations
In order to remain a company trusted by all of our
stakeholders, we are working to strengthen our corporate
governance and compliance while ensuring the soundness
and transparency of management. Through appropriate
decision-making, we seek to achieve sustainable growthand increase our medium- and long-term corporate value.
We conduct e-learning-based education for all of ouremployees every year to thoroughly communicate internal
rules and regulations, including the ACCRETECH Group
Code of Conduct. In fiscal year 2020, all targeted

To contribute to the creation of a sustainable society and todeliver safe and reliable products to all of our customers,
we are actively working to reduce our environmental
impacts. In addition to promoting environmental
conservation activities, we conduct continuous educationfor employees to further enhance product safety andquality. We obtained ISO 9001 certification in August 2003
and ISO 14001 certification in February 2020.
Subsequently, we constructed an integrated management
system for both certifications and acquired both in May
2020. Through continuous improvements, thesecertifications connect to the strengthening of ourorganizational capabilities.

●Creation of Safe and Secure Workplace
Environments
Every month, each of our operation sites holds a Safety and
Health Committee meeting. The Safe Operation
Subcommittee, Fire Prevention Subcommittee, Safe Driving
Subcommittee, and Environmental Subcommittee eachgoes beyond compliance with the Industrial Safety and
Health Act and related laws, and acts to ensure the safety
and security of employees and to maintain and improvehealthy and comfortable working environments.
At the Kandatsu Plant and Niigata Plant, we carry out
monthly 5S3T Patrols to create comfortable working
environments in which all employees can work safely. Everymonth, the plants appoint different patrol committee
members so that improvements are actively proposed fromnew perspectives. The company as a whole is evolving
toward more efficient workplaces.
The Nagoya Plant conducts safety patrols to raise thesafety awareness of all employees, improve workplaceenvironments, and contribute to achieving zero industrial
accidents. Through initiatives that use safe work risk
assessments to reduce risks, we conduct assessments ofrisks of hazard factors and enact essential safety measures
based on risk reduction priorities.

CSR REPORT 2021

45

Affiliated companies of the Tokyo Seimitsu Group are introduced below.

Introduction to Group Companies 2
Tosei Systems Co., Ltd.
Company Profile

Company Profile■ Date of establishment: October 1, 1985
 968-2 Ishikawa-machi, Hachioji-shi, Tokyo■ Head office: 2(inside Tokyo Seimitsu Plant)■ Representative: Koichi Kawamura■ Sales: 2,212 million yen (FY2020)■E mployees: 139 (as of March 31, 2021)■URL: https://www.toseisystems.co.jp/■ Bases: 2
 bases in Japan, 0 bases overseas■ Date of establishment: September 1, 2001
■ Head office: 2968-2 Ishikawa-machi, Hachioji-shi, Tokyo■ Representative: Hideaki Takano■ Sales: 1,022 million yen (FY2020)■Employees: 42 (as of March 31, 2021)■ URL: https://www.toseibox.com■ Bases: 4 bases in Japan, 0 bases overseas

Business Overview

Business Overview

Tosei Systems Co., Ltd. is a wholly owned affiliate of Tokyo
Seimitsu that supports Tokyo Seimitsu's productdevelopment in terms of software.
Focusing on Tokyo Seimitsu's semiconductor
manufacturing equipment and measuring equipment, as
well as equipment of affiliated companies, we perform
development and maintenance of embedded software that
controls equipment and Windows applications incidental toequipment. We are also involved in development andoperational support for enterprise resource planning (ERP)systems and the creation and maintenance of web sites,
and undertake wide-ranging software operations for entire
Tokyo Seimitsu Group. We conduct new graduate andmid-career recruitment of men and women from different
academic backgrounds according to aptitude for software,
enabling us to handle a wide range of software-related
work. We are making efforts toward education for new
graduates, employing a mentor system that tracks
prospective employees as well as four-month training,
including external training, after employees join. The final
curriculum item in external training is a team development
project using microcomputer boards. Participants are able
to gain an overall view of on-site development, fromrequirements definition to design, production, andpresentation of results. We work to ensure that new
graduates are able to get off to a confident start at where
they are assigned following training.

Tosei Box offers richer living environments through delivery
lockers that can be used with peace of mind, under the
motto "Safety, Comfort and Relief." We believe that ourbusiness greatly contributes to society by letting logisticsrelated businesses reduce re-deliveries and CO2 emissions
as well as reduce excessive burdens on delivery staff.
The boxes offer lessened face-to-face contact as a
COVID-19 infection control measure, which we believe
makes them an increasingly vital social tool under the newnormal lifestyles following the pandemic.
We meet customers' needs with a lineup of stainless steel
and color coated product types that improve security andoperability for customers and that harmonize with buildings'
interiors.
Products equipped with advanced technologies such as
non-contact IC cards, facial recognition, and veinauthentication for personal identification, and products with
automatically opening doors, are becoming widespread.
We will continue our efforts to supply better products andservices and to actively engage in CSR activities so that we
can make contributions to the society of the future.
In education targeting all employees, we communicate thesocial significance of our business, and use e-learning toraise awareness of our Code of Conduct, information
security, and harassment-related education.
Through BCP activities, we also work to provide quick
support for restoration of customers' equipment and fasterresumption of business following a disaster.

CSR Topics

In the current fiscal year, we expanded our ISO 27001
information security management system to all
development departments and renewed certification for
Tosei Systems Co., Ltd.
Our company-wide ISMS activities have led to the
expansion of certification from specific areas to all
departments. We will continue to operate and improve thesystem in order to remain a company that is trusted by our
stakeholders.
46

Tosei Box Corp.

CSR REPORT 2021

Accretech Powertro
System Co., Ltd.
Company Profile■ Date of establishment: October 1, 1999
 0 Osaku, Matsukawa, Furudono-machi,■ Head office: 5
Ishigawa-gun, Fukushima■ Representative: Masahiro Tomoeda■ Sales: 1,148 million yen (FY2020)■E mployees: 94 (as of March 31, 2021)■URL: https://www.acct-powertro.jp/■ Bases: 5
 bases in Japan, 0 bases overseas
Business Overview

Based on the power supply technology we have developed
over many years, we perform development, manufacturing,sales, and service for the charge/discharge testing systems
indispensable for the testing and evaluation of secondary
batteries and capacitors. Our equipment is primarily used in
R&D for lithium-ion batteries installed in hybrid vehicles,
plug-in hybrid vehicles, and other electric vehicles, as well
as charge/discharge cycle testing for quality assurance. For
customers who do not have test equipment or who have
limited testing capacity, we also provide a contracted
battery evaluation service using our charge/discharge
testing system. Customers' needs for this service are
increasing, and we are working across the company tomake this a major pillar of our business.
Under our company mission of "Contribute to forthcoming
environmental society through involvement as secondary
battery evaluation professionals in the evolution anddevelopment of the industry," we hope to greatly aid theongoing shift toward electric vehicles amid global
environmental regulatory movements.

CSR Topics
The town of Furudono in Fukushima Prefecture, the locationof our head office, is a typical regional small town in Japan
with a shrinking population of about 5,000 people. For thatreason, companies like ours must maintain stronger
awareness of ourselves as members of the local community,and must make contributions to it. We hope to continue
activities such as clean-ups along the neighborhood riverand provision of extracurricular lessons for local elementaryand junior high school students.

Charge/discharge
testing system
Energy Testing System

Contracted
battery
evaluation
service

CSR REPORT 2021

47

Data
Corporate Data
● FY2020 sales amount by business● Sales amount(Million yen)
100,000
80,00077,792(Million yen)
20,00097,105

101,52087,927

88,19425,35960,00015,00071,74540,00017,316

15,867

13,864

12,36010,000(Million yen)
2016

2017

2018

2019

2020
(FY)

● R&D
(Million yen)
8,000
6,791

7,469

8,234

7,193

7,194

■ Precision measuring instruments

2019(People)
2,500

6,000

13,872

2,000
7,477
4,145

3,000

2019

2018

(Million yen)
15,000

2,000

2018

2017

● Number of employees

9,000

2017

2016

● Capital expenditures

4,000

2016

0

■ Semiconductor manufacturing equipment

12,0006,000

020,8055,000

20,0000● Ordinary profit

0

2020
(FY)

2016

2,119

2,250 2,293

1,500

5,950

3,547

2017

1,784

1,933

2020
(FY)

1,000
500

2018

2019

2020
(FY)

0

2016

2017

2018

2019

2020
(FY)

Relationship with Employees● Human resource data (Non-consolidated)
FY2018FY2019FY2020Percentage of female managers

1.4%

1.4%

1.5%

Percentage of female officers

0.0%

7.7%

7.7%

Percentage of female employees

17.0%

16.8%

16.6%

Ratio of average years of service,
female employees vs male employees

73.8%

68.4%

68.4%

Ratio of female job applicants in
new graduate recruitment

22.3%

22.3%

27.9%

Ratio of female prospective employees in new
regular employee recruitment

13.4%

6.2%

14.5%

Percentage of employment of persons withdisabilities

2.10%

2.13%

2.01%

Turnover rate of regular employees

2.58%

4.39%

3.1%

Percentage of paid leave taken (for all employees
including fixed-term, short-term, and temporary
employees)

62.4%

69.0%

60.8%

Number of personal development
correspondence education courses applications

97
161
22
(441% year- (166% year(-)
on-year)on-year)Frequency rate for accidents resulting in leave*

0.00

0.71

0.00

Severity rate for accidents resulting in leave*

0.000

0.003

0.000

● Trend of accident frequency rate
Industry averagein Japan*Tokyo Seimitsu(non-consolidated)

1.5
1.15
1.0

0.5

0.0

1.20

1.20
0.71

0.51

0.00
2016

1.21

1.02

2017

0.00
2018

2019

0.00
2020
(FY)

* Ministry of Health, Labour and Welfare"Survey on Industrial Accidents"● Trend of accident severity rate
Industry averagein Japan*Tokyo Seimitsu(non-consolidated)

0.15
0.10

0.10
0.07
0.05

0.00

0.10

0.08

0.07

0.031

2016

0.000

0.000 0.003

0.000

2017

2018

2020
(FY)

2019

* Ministry of Health, Labour and Welfare"Survey on Industrial Accidents"

48

CSR REPORT 2021

Relationship with the Global Environment● Breakdown of industrial waste generated in FY2020 (%)
Generalindustrial wastes 3.2

Non-combustible waste 0.9

Sludge 3.4

Wire scraps andoffice appliances 0.7

Waste liquids 5.1● Trend of recycling rate and final disposal amountFinal disposal amount

(t)
100

Metal scraps 32.9

Plastic wastes 8.5

99.1

Waste paper 18.2

Waste wood 12.2

42

94.0

20

14

2016

2017

● CO emissions(kwh)
35,000(t-CO)14,00028,843 29,500
25,163 25,765 25,448

12,0008,000

15,000

6,000

10,000

4,000

5,000

2,000
2017

2018

2019

2020

2021 (FY)0(Results) (Results) (Results) (Results) (Results) (Forecast)

250,000

2.74
2.29(m³/million yen)
3.00
2.50

2.20

2.29

2.05

200,000
149,544150,000 142,629

157,375

171,706 169,873

2.00
1.50
1.00

50,000

0.50

2017

2018

90.0

12,176 12,311 12,312 11,976
9,524
8,240

2016

2017

2018

2019

2020

2021 (FY)Paper purchasing volume
Paper purchase conversion(kg/million yen)
0.600

(kg)
37,00035,000

0.501
0.458

33,00031,000

0.401

2019

2020 (FY)

0.444

0.500
0.386

31,159 30,800
28,622
27,76627,00025,000

0.400
0.300

29,82729,000100,00020162020 (FY)(Results) (Results) (Results) (Results) (Results) (Forecast)

Water usage conversion(m³)
300,000

2019● Paper purchasing volume● Amount of water usage
Water usage

2018

92.0

13

12

9

10,00020,000

2016

98.0
96.0

● Electric power used

0

98.5

60

0

24,197

98.6

98.3

80

40

Glass wastes 8.8

25,000

(%)
100.0

96.3

Wood scraps 6.1

30,000Recycling rate

0.200
0.100

2016

2017

2018

2019

2020 (FY)

0.000● Trend of water usage by source(m³)
180,000

Industrial water (groundwater) (m³)
City water (m³)

160,000
140,000
120,000
100,000
80,00060,00040,00020,000
0

2016

2017

2018

2019

2020 (FY)CSR REPORT 2021

49

ISO 26000
Correspondence Table
ISO 26000
Core Themes

Governance

We organized our CSR initiatives in correspondence with the core themes of the ISO 26000
for our CSR reporting to expand upon our CSR initiatives and reporting.

Issues

1. Governance

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

Humanrights

5.Resolving grievances
6.Discrimination and vulnerable
7.Civil and political rights
8.Economic, social, and cultural rights
9.Fundamental principles and rights at work

Labourpractices●CEO's Message●Tokyo Seimitsu's Policy on CSR●Value Creation Model●ACCRETECH Group Code of Conduct●Stakeholder Engagement●Corporate Governance•Corporate Governance•Compliance•Risk Management●Relationship with Customers•Compliance and Employee Training●Relationship with Suppliers•CSR Fulfillment Together with Suppliers●Relationship with Employees•Consideration of Human Rights and Compliancewith Labor-Related Laws and Regulations●ACCRETECH Group Code of Conduct●Relationship with Suppliers•CSR Fulfillment Together with Suppliers●Relationship with Employees•Consideration of Human Rights and Compliancewith Labor-Related Laws and Regulations•Initiatives for Safe Workplace Environments•Creation of Healthy Workplaces where People canWork with a Sense of Purpose•Realization of Comfortable Workplace Environments
where People can Play Active Long-Term Roles●Corporate Governance•Compliance

10.Employment and employment relationships ●ACCRETECH Group Code of Conduct●Relationship with Customers
11.Conditions of work and social protection•A Global, Meticulous Support Structure
12.Social dialogue•A Support Structure Tailored to Customers●Relationship with Suppliers
13.Health and safety at work
•CSR Fulfillment Together with Suppliers
14.Human resource development and training ●Relationship with Employees
at work●Relationship with Society•Relationship with Local Communities
15.Prevention of pollution
16.Sustainable resource use

Environmental

Our Initiatives

17.Mitigation of and adaptation toclimate change
18.Environmental preservation, biodiversity,and recovery of natural habitats
19.Prevention of corruption
20.Responsible political involvement

Fair business 21.Fair competition
practices22.Promotion of social responsibility in thevalue chain

23.Respect for property rights●ACCRETECH Group Code of Conduct●Relationship with the Global Environment•Basic Policy on the Environment•Eco-products•Eco-factory•Chemical Substances Control●Relationship with Society•Relationship with Local Communities●ACCRETECH Group Code of Conduct●Corporate Governance•Compliance•Risk Management●Relationship with Suppliers•CSR Fulfillment Together with Suppliers●Relationship with Shareholders and Investors

24.Fair marketing, information, andcontractual practices

Consumerissues●ACCRETECH Group Code of Conduct
25.Protection of health and safety of consumers ●Corporate Governance●Relationship with Customers
26.Sustainable consumption•Initiatives for Customer Satisfaction
27.Consumer services, support, resolution of ●Relationship with Suppliers
complaints and grievances•CSR Fulfillment Together with Suppliers●Relationship with the Global Environment
28.Consumer data protection and privacy•Eco-products
29.Access to essential services

30.Education and raising awareness31.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.Health37.Social investment

50

CSR REPORT 2021

●ACCRETECH Group Code of Conduct●Relationship with Employees•Creation of Healthy Workplaces where People canWork with a Sense of Purpose•Provision of Opportunities for Every Individual toGrow●Relationship with Society•Relationship with Local Community•Relationship with Industry Group

RelatedSDGs

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: https://www.accretech.jp/english/
Issued: October 2021

A - 016 - E - 2110