Tokyo Seimitsu

CSR Report 2018

Editorial Policy
The Tokyo Seimitsu Group established the CSR Promotion Department under the direct control ofthe president in April 2015 to explore the responsibilities and roles to fulfill to "achieve a sustainable
society," launching actions for CSR (corporate social responsibility). With the aim to realize solution ofsocial challenges through business activities, creation of social values beyond that and improvementof our corporate economic values, effort for sustainability is positioned as a priority in the mid-term
management plan announced in May 2018. This CSR report is intended to disclose the Tokyo SeimitsuGroup's corporate activities to all stakeholders, both existing and potential.
We intend to use this report as a tool of communication with our stakeholders to receive feedback andhope to develop our fledgling CSR actions into a more effective initiative.
Scope of This Report
Period covered:

In principle, this report covers activities during the period from April 1, 2017 to March 31, 2018.
Activities continued from before the period covered, as well as those conducted most recently,
are included.

Organizations covered:Tokyo Seimitsu Co., Ltd.
Semiconductor Company, Hachioji Plant (Hachioji City, Tokyo)
Metrology Company, Tsuchiura Plant (Tsuchiura City, Ibaraki)
Administration Company (Hachioji City, Tokyo)
Semiconductor Company, sales offices (3 offices in Japan)
Metrology Company, sales offices (14 offices in Japan)

Affiliated companies:

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

In principle, this report pertains to Tokyo Seimitsu Group. When the reported information is confined to one or more specific organizations,the scope of coverage is indicated individually.
Issued: October 2018 (next issuance scheduled for October 2019; last issuance date: October 2017)

For additional information, go to◀

Environmental and Social activities:

http://www.accretech.jp/csr/index.html◀

Products tab of Tokyo Seimitsu's website:

http://www.accretech.jp/product/index.html

The following documents can be downloaded.
◀

Company information:

http://www.accretech.jp/company/guide.html◀

Financial data:

https://ir.accretech.jp/ja/index.html◀

CSR Report:

http://www.accretech.jp/csr/index.html

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ACCRETECH CSR REPORT 2018TOKYO SEIMITSUCONTENTS
Massage from the President ................................... 4
How We See CSR.................................................... 6
ACCRETECH Group Code of Conduct.................... 8
Profile of Tokyo Seimitsu.......................................... 9
Corporate Governance........................................... 10
Corporate GovernanceCompliance
Risk Management
Relationship with Customers.................................. 12
Commitment to Quality Control
Global and Attentive Support System
Commitment to Customer Satisfaction
Relationship with Suppliers.................................... 16
Basic Stance on Procurement
Supply Chain Enhancement
Relationships with Employees................................ 18
Employment and Use of Human Resources
Industrial Health and Safety
Relationships with Shareholders and Investors .... 22
Stance on Information Disclosure to
Shareholders and Investors
Proactive IR Activities
Relationship with the Global Environment ............. 23
Basic Stance on the Environment
Eco-products
Eco-factory
Chemical Substances Management
Overview of Environmental Impact
History of Environmental Protection Activities
Relationship with Society....................................... 30
Environmental Volunteer Activities in Local
Community
Relationship with Industry Groups
Group Companies.................................................. 32
Comparison Table with ISO26000.......................... 34

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

3

Message from the President

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

Corporate Philosophy:

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

The words "Accrete" and "Technology" are combined to coin this term, meaning to "Grow Together."

I would like to take this opportunity to express my utmost
gratitude to many business partners for the support they
have given us to date since the establishment of theTokyo Seimitsu Group.
In our "Environmental and Social Report 2015," wedeclared the compliance with the RBA Code of Conduct(old EICC) that is the Electronic Industry Code of4

Conduct. We will continuously and strictly comply withthis code.
We issue a CSR Report from 2016, and make it public toincrease our corporate value by deepening win-win
relationships with a wider range of stakeholders andensure that all stakeholders understand our corporate
philosophy, value and social responsibility and role.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Message from the President

Environment

Through partnerships with enterprises and individuals
with whom we share the goal of "creating the world's
No.1 products," we develop innovative new products
based on nanotechnology. We are a technology-oriented
company committed to nurturing a global and hybrid
corporate cultural environment of Tokyo Seimitsu(ACCRETECH) encompassing different cultures and tobuilding a development system for the world's No.1
products, under the motto of "WIN-WIN
RELATIONSHIPS CREATE THE WORLD'S NO.1
PRODUCTS," for the purpose of making thiscollaboration a success.

・Eco-conscious products: development of environmentally friendly products taking LCA into consideration
・Global warming prevention: CO2 emissions reduction
・Reduction in resource usage: cut in water consumption, higher recycling rate of wastes

Social・Quality improvement: enhancement of change management process・QMS activity
・Operation safety: accident rate reduction
・Supply chain: intensify and improve ESG activities based on our policy in cooperation with suppliers・Others: work style reforms (promotion of women's advancement, etc.), compliance, adoption programs in Hachioji / Tsuchiura Cities

Governance・The Group Code of Conduct: education, permeation and review in all offices
・Compliance: establishment, education and review of compliance system
・Information security enhancement: more rigid in-house management system, inspection system, control education

The corporate brand, "ACCRETECH," introduced in
2001, is a term coined by combining the word "Accrete,"meaning "to grow together," and the word "Technology."
It represents our corporate philosophy to "create theworld's No.1 products and grow significantly with ourpartners and customers by integrating the excellent
technology, wisdom, and information available in theworld."※★ is attached to the title of policy in addressing ESG issues.

Our Policy in Addressing ESG Issues
We will engage in the following activities to achieve asustainable society. As described above, our activities
were based on ISO26000, while conforming to the RBA
Code of Conduct. Going forward, however, we willconsider active participation and engagement in the UN
Global Compact and associated initiatives.

Based on this philosophy, we have provided
manufacturers around the world with measuring
instruments utilizing the state-of-the-art precision
measuring technology as well as semiconductor
manufacturing equipment that takes advantage ofprecision positioning technology. Staying true to theconcept of "What cannot be measured cannot be
produced" as the basic principle of manufacturing, we willcontinue our sincere effort to offer valuable technologies
and services that are friendly to the global society andenvironment.

With enterprises around the world exploring new ways of
manufacturing to meet the needs of the international
community for healthy, safe, and comfortable livelihood
with low environmental impact, we consider it Tokyo
Seimitsu's social role to fulfill those needs by providing ameans of production that makes the impossible possible
with high-quality No.1 products.
Any countries, including emerging or poor countries,
have a potential to develop industry. We will help thesecountries increase their competitiveness by giving them
added values that enable many people to demonstrate
their ability through cooperation in the field of precision.

We explained our future ESG initiatives in the financial
results briefing in May 2018. The company is proactively
engaged in CSR activities to "achieve a sustainable
society" and its business activity is made possible byinteractions with various stakeholders. Consequently weare determined to take actions in every business processwith emphasis on interactive communication.

Active participation inexternal groups(SEAJ, JMA, etc.)

CustomerGreater customer satisfaction,
Quality management enhancement,
Upgrading of solutions,
Deployment of new technologies

Industry
group

Employee
Tokyo SeimitsuGroup

Establishment of SCM(supply chain management),
Training and study group

Supplier
Local cleanup activities,
Collaboration withadministrative bodies

Work style reform,
Promotion of diversity,
Facilitation of women's
advancement

Shareholder
Localcommunity

Tokyo Seimitsu is a group of engineers devoted toworking in unity with customers and suppliers to
overcome the hurdles in the creation of new value andwill continue to take part in the effort to create "a future
full of dreams" as an indispensable member of"manufacturing communities" across the globe. We also
continue to provide our shareholders and investors withaccurate information on our business performance,
financial situation, and business strategy in a timely
manner to improve transparency of our activities andgovernance. By increasing our corporate value andrealizing "a future full of dreams," we are going to build
long-term relationships with our shareholders andinvestors so that all of them can achieve gains in asset
value safely.

Proactive information
disclosure

Relationship with Stakeholders
ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

5

How We See CSRWith philosophy of creating the world's No. 1 products by integrating
excellent technology, wisdom and information available in the world, Tokyo
Seimitsu will work together with all stakeholders such as manufacturing
customers and suppliers to realize sustainable society.

Motto

Wind power
generation

WIN-WIN RELATIONSHIPSCREATE THE WORLD’S NO.1
PRODUCTS!

Precision Measuring Instruments

Suppliers
Partners we work withto create new value

Corporate Philosophy

We create the world's No. 1
products and grow together tohigher level by integrating
excellent technology, wisdom
and information available in
the world.

6

Small
components

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Materials

Electric
components

Finished Products
 anufacturers
M
Supported by
Tokyo Seimitsu

Smartphones

SupportManufacturing andSociety with
Measuring Technology

Achieve a
Sustainable
Society

Airplanes

Next-generation
robotsAutomobiles

Semiconductor Manufacturing Equipment

The Tokyo Seimitsu Group has contributed to enhancing the convenience of society andreducing environmental impact by providing precision measuring instruments that are
indispensable for our manufacturing customers' highly efficient production processes andsemiconductor manufacturing equipment that helps produce electronic products in anenergy- and resource-saving manner. This means that the measuring technologies andproducts that the Tokyo Seimitsu Group provides support manufacturing activities ofcustomers and that end products produced through those activities support the entire
society.
In order for us to continue to provide society with various values through our products, it
is essential to grasp the needs of customers and society from a medium- and long-term
perspective and collaborate with many suppliers who relate to our corporate philosophy.
We are determined to create new technologies based on the win-win relationships withstakeholders and support society through our manufacturing activities that improve thequality of life and preserve and enhance the environment. At the same time, we intend toenter new fields where we can provide security and safety by leveraging ourtechnologies, thus contributing to the development of a sustainable society.
Also, in order to keep growing together with stakeholders, we ensure that human rights
are respected in all processes of our business activity and evaluate our impact on the
global environment. We strive to fulfill our social role in awareness of the responsibility
that we bear. As part of these efforts, the CSR report portrays Tokyo Seimitsu as it is andis intended to promote various forms of communication with stakeholders.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

7

ACCRETECH Group Code of Conduct★
In order to create a WIN-WIN relationship with all stakeholders, including customers, shareholders and investors, suppliers, etc. and to achievesustainable development both in the long term, the Tokyo Seimitsu Group must take actions that can be accepted by society conducting
business activities.
The Group has adopted the ACCRETECH Group Code of Conduct (herein after called the "Group Code of Conduct") to provide a set of guiding
principles, such as compliance with laws and internal regulations, respect for human rights, fair and sincere business activities and ethicalbehavior, which are to be observed by all directors and employees to meet the highest ethical standards and transparency, and to establish andmanage compliance promotion systems.
Tokyo Seimitsu Group provides education for the directors and employees on the Group Code of Conduct to improve and raise awareness.
The Group also makes sincere efforts to obtain understanding and cooperation from all stakeholders in its compliance activities.
The Group Code of Conduct contains action guidelines on the following items:

01.
Compliance with
Laws,
Regulations andSocial Norms

05.
Entertainment
and
Gifts

02.

03.

04.

Respect for
Human Rights

SafetyandEnvironment

Fair and Sincere
Business
Activities

06.

07.

08.

Intellectual
Property Rights

Information
Management

11.

12.

Preservation ofCompany Assets

Media Relations

Information
Disclosure

ACCRETECHGroup

Code of
Conduct

09.

10.

Prohibition of
Insider Trading

Avoiding Conflictsof Interest

13.

14.

15.

16.

Connection with
Antisocial Forces

International
Trade Control

Politics, Religions
andIdeologies

Internal Control

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ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Profile of Tokyo Seimitsu
With semiconductor manufacturing equipment and precision measuring instruments as thepillars of its business, Tokyo Seimitsu conducts business activities globally, mainly in Asia
but also in other parts of the world including Europe and the Americas. We aim to create theworld's No.1 products and continue to grow with our partners and customers by integrating
the excellent technology, wisdom and information available in the world.
■ Outline of Company■ ProductsCompany nameTokyo Seimitsu Co., Ltd.

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

EstablishedMarch 28, 1949

President

Hitoshi Yoshida

Paid-in capital

10,561 million yen (as of March 31, 2018)

Exchange listing

Tokyo Stock Exchange 1st Section

Sales amount (consolidated) 88,194 million yen (as of March 31, 2018)
Ordinary profit (consolidated) 17,316 million yen (as of March 31, 2016)
Number of employees (consolidated) 1,933 (as of March 31, 2018)
Operation sites

Hachioji Plant, Tsuchiura Plant, and 17 sales offices in Japan,
66 overseas offices, 5 domestic group companies, etc.

■ Financial Data (Consolidated)

Semiconductor Manufacturing
Equipment◀

Sales Amount◀

(million yen)

80,00066,44560,00070,274

R&D(million yen)
8,000

88,194

100,000

Precision Measuring
Instrument

77,792

7,194
5,744

6,000

6,292

6,791

4,979

55,2684,000
40,0002,000

20,000
0

0

2013

2014

2015

2016

2017

◀

Ordinary Profit◀

(million yen)
20,00012,791

13,232

2014

2015

2,000

5,000

1,803

1,000

0

2014

2015

2016

2017

0

(Fiscal year)

FY2017 Sales Amount by Business (Million yen)

2013

◀

2013

2014

2015

2016

28,671■ Semiconductor Manufacturing
Equipment(Fiscal year)

1,933

2,000

■ Precision Measuring Instrument

2017

Number of employees(People)2,500

59,523(Fiscal year)

3,019

3,000

9,024

2017

3,547

3,796
3,249

13,8642016

Capital Expenditures(million yen)
4,000

17,31615,00010,0002013(Fiscal year)

1,500

1,393

1,447

1,559

1,784

1,000
500
0

2013

TOKYO SEIMITSU

2014

2015

2016

2017

(Fiscal year)

ACCRETECH CSR REPORT 20189◀

Corporate GovernanceTokyo Seimitsu Group is committed to establishing and running a highly
transparent management system and aims to achieve sustainable growth andincrease corporate value in a medium- and long-term basis.

Corporate Governance

Basic Policies■ Basic View on Corporate Governance

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

Our group philosophy is "to create the world's No.1 products
and grow significantly with our partners and customers by
integrating the excellent technology, wisdom, and information
available in the world." By putting this philosophy into practiceunder the corporate brand "ACCRETECH," we strive to achievesustainable growth and increase corporate value.
To meet this goal, we recognize the need to ensure fair andtransparent management activities as a reliable corporate
citizen in the international community and have established thebasic policies.

2. The Company respects the rights of shareholders
and ensures the equality of shareholders.
3. The Company strives to have constructive
dialogues with shareholders on investment policythat places emphasis on mid- to long-term returns
for shareholders.
4. The Company strives to maintain appropriate
collaboration with stakeholders other thanshareholders, such as customers, suppliers,
employees, creditors, and local communities.
5. The Company strives to ensure proper information
disclosure and transparency.

Corporate Governance Structure◀

Shareholders' Meeting
Appointment/dismissal
Audit

Board of Auditors

Assistantauditor

Audit

ReportReportBoard of Directors

ReportOutside auditor

Appointment/dismissal

Appointment/dismissal*1

Outside director*2

ReportDecisions on appointment,
reappointment, and dismissal
Judgment of appropriatenessof accounting audits

Appointment/dismissal/
supervision

AdviceAdvisory Council

President

Instruction/
supervision

Information/opinion exchange meetings of outside directors Report
Instruction/
supervision

Instruction/
supervision

ReportExecutive Management
Meeting
Executive Officers'
Meeting

Executive officer

Management Support Dept.

Information Security Committee
Quality Control Committee
Environmental Management Committee
Health and Safety Committee
Internal Control Committee

Discussion/report

CSR Promotion Dept.
Audit/guidance

ReportCSR Promotion Committee
Risk Management Committee

Export Control Dept.
New Business Planning Dept.

ReportCompliance Committee
ReportInstruction/
supervision

Audit Dept.

Accounting auditor

Execution of operation

ReportPlanning/
reportCompanies (Semiconductor, Metrology, and Administration Companies) and group companies*1 Appointment*2 Appointment/dismissal

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ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Instruction/supervisionCorporate Governance■ Stance on Internal Controls■ Whistle Blower System

We are committed to reinforcing our corporate governance andcompliance and ensuring sound and transparent management
by establishing internal control systems.

The Tokyo Seimitsu Group has the Compliance Consultation
Office as a whistle blower system.
This service is offered through the following channels outside
and inside the company: ① Compliance Committee members.
② Personnel Counseling Dept. ③ External lawyers. ④ Outside
directors. ⑤ Auditors.
Every effort is made to protect the anonymity and privacy ofwhistleblowers and shield them from any negative
econsequences.

■ Internal Control System
The Board of Directors has built an effective internal control
system and established a structure for complying with laws,
regulations and the articles of incorporation to ensure that all
business operations are performed appropriately and soundly.
The Board of Auditors audits the effectiveness and functions of
the internal control system. The Audit Department, established as
an organization under the direct control of the president, conducts
internal audits to verify that the business operations of Tokyo
Seimitsu group are conducted in compliance with relevant laws,
regulations, articles of incorporation, and internal rules, as well as
to assess the validity of controls. The Audit Department also
carries out IT control audits in cooperation with other relevant
departments and teams. The Audit Department checks theoperation status of internal controls related to financial reportingof the Tokyo Seimitsu Group and evaluates their validity.
If the Audit Department finds any violation of laws, regulations,articles of incorporation, or internal rules, or any risk due to someother reasons, its General Manager immediately notifies the
President and the Board of Directors takes actions. Internal audits
are conducted according to an annual plan approved by the
Board of Directors, and their results are immediately reported to
the President as well as at the Board of Directors and Executive
Management Meetings. Audit results and suggested
improvements are also shared with related sections and divisions.

■ Status of Legal Compliance
Results of evaluations and other inspections conducted ininternal audits and by external audits show no misconduct, legal
violation, or any other problem that affects business activities
with regard to the appropriateness of financial statements, thequality of products, and environmental activities in fiscal 2017.

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

Compliance ★

■ Risk Measures■ Compliance Management System

Tokyo Seimitsu, in line with the "business continuity policy,"
reviews and refines its business continuity plan and BCP inplants. In the managers' training in fiscal 2018, effort by Hachioji
Plant toward BCP was reported by the plant manager. The
following were explained in detail to managers and reconfirmed:
damage estimation in BCP; initial response, execution of BCP
and its criteria for judgment; organizational structure; seismic
resistance of buildings, complementarity of utilities facilities,
enhancement of performance and facilities in each plant andevacuation destinations; BCP in each department including
production and sales. Based on this, we will implement in aplanned manner further refinement of the business continuity
plan and BCP in plants, enrichment of education and desktop
training, review of manuals, BCP in each department as well as
review of damage estimation. Tsuchiura Plant will continue totake similar measures through collaboration with Hachioji Plant.
Tokyo Seimitsu Group has a "safety confirmation system" inplace that enables us to check whether employees are safe in
the event of a disaster or accident by using cellular phones or
smartphones. In order to check its effectiveness and to raiseawareness of all employees, we conduct semiannually a "drill tooperate the safety confirmation system" and announce its
results. We also trace once a month employees whose e-mailaddress is not registered yet.

The Tokyo Seimitsu Group has the Compliance Committee asan organization to manage compliance-related efforts. This
organization is led by the board directors and executive officers,
the other members include directors in charge of production,engineering, and personnel management, presidents of thegroup companies, etc. The committee formulates the code ofcorporate ethics and action guidelines, and reports anddiscusses compliance education, training, and activities. If there
is any potential violation or infringement of laws, regulations,rules, or ethics, it takes corrective actions.

■ Compliance Education
It is important that thorough compliance, all directors andemployees should understand applicable laws, regulations, andrules and realize their obligation to comply with them. We
provides many education opportunities to raise awareness ofcompliance and stay highly conscious. In addition to levelspecific education programs such as new employee training andtraining for managers, we have implemented an e-learning
training system in Japan. In safety and health training at
manufacturing site, emphasis is placed on compliance with
relevant laws and regulations, including those related to quality
and environmental management.

BCP (Business Continuity Plan)

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

11

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

Commitment to Quality Control■ Basic Views on Quality■ QMS Activity ★

"Quality" provided by Tokyo Seimitsu consists of 'quality ofstable and reliable products' and 'quality of prompt andmeticulous support.' We strive to upgrade our "quality" by active
use of customer satisfaction surveys to assess the level ofsatisfaction on both qualities.
We contribute to society by offering customer satisfaction andreliable products and support.

Various Activities of QMS■ Quality Policy
Hachioji and Tsuchiura Plants collectively received ISO9001 in
1994 and ISO9001:2015 certification was obtained byestablishing the following quality policy in April 2018.
Quality Policy of Tokyo Seimitsu Co., Ltd.
Basic Philosophy
WIN-WIN RELATIONSHIPS CREATE THE WORLD’S NO.1 PRODUCTS!
Policy1. W e comply with laws and regulations in products andproduction, and contribute to society by placing priority on
meeting customer requirements.
2. At the beginning of every fiscal year, each Company reviews
its quality targets (priority targets) for the previous year, andsets new quality targets for the new year to enhance productquality.
3. We continuously improve the performance and effectivenessof our quality management system.
4. W e develop user-friendly products by establishingpartnerships with users.
5. We seek to improve quality through total quality control (TQC).
6. W e seek to improve quality through partnerships with
subcontractors.
7. We enhance customer support in business, technology andservices.
8. We build safety, quality, and reliability in each production
process to achieve stable supply.
9. The quality management system applies to the activities,
products, and services of Semiconductor and Metrology
Companies.
10. This quality policy is disclosed internally and externally.

12

We reviewed our quality system in 2015 in accordance with therevised ISO9001:2015 and started its implementation in fiscal
2017. With this new quality management system, quality policy
was revised and quality targets were set by each plant toimprove quality performance in order to address the needs ofstakeholders, internal and external challenges and control risk.
More specifically, each section devises its implementation planto achieve the quality targets by creating an implementation
plan document for quality targets as well as a quality
management system program.
Wide-ranging themes for improvement are selected for thequality management system program, for example, by choosing
as themes items identified in customer satisfaction
questionnaire results as requiring improvement.
Quality Working Group, in its quarterly meetings, confirms
achievements of the quality management system program,evaluates progress and examines measures for improvement.
We promoted these activities in fiscal 2017 and received
ISO9001:2015 certification in the spring of 2018.

Upgrading of Change Management ★

We have strived to eliminate defects by assessing, as a causeof defectives, risk due to changes of design, production andothers and by taking measures beforehand.
In fiscal 2017, management standards were updated to be more
specific through establishment of change management rules inhigher-level standard documents of the company andincorporation of them in lower standard documents in eachrelevant section. The enhanced management standards further
repeated the cycle of actual use and feedback in each relevant
section and achieved a higher degree of perfection. By
strengthening management standards, we are working to
reduce the risk of defects accompanying changes and toprevent problems from occurring.
We plan to accumulate change management results data to use
it as a data base of similar change risks and seek speedier andmore efficient change management operation.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationship with Customers

Global and Attentive Support System■ Semiconductor Manufacturing
Equipment Business
Global Service Alliance
Service Division of Customer Engineering Department holds anannual meeting called GSM (Global Service Meeting).
The 6th meeting is scheduled in October this year.
Service engineers from across the globe attend the meeting.
They share updates, undergo training to improve their skills,
and hold meetings with staff from relevant sections.
We aim to fill skills gaps among regions through this meetingand to provide standardized services for customers in any partof the world.
Hachioji Parts Center of Customer Engineering Department
launched CE Stock Manager System on a full scale.
This is a system to enable confirmation of stocks across theglobe from anywhere in the world on the Web.
With the introduction of this system, stocks can now be
confirmed immediately, which was not attainable before when
Hachioji Office was closed, resulting in dramatically better
response to customers in overseas offices.
This system allows confirmation of stocks located not only in
Hachioji Plant but anywhere in the world. Consequently
overseas offices can accommodate parts to each other anddeliver them to customers without relying on Hachioji Plant.

■ Precision Measuring Instrument BusinessLeading-edge Bases and Support for
Accelerating Value Creation for Customers
Under the slogan of "what cannot be measured cannot be
produced," Tokyo Seimitsu regards our precision measuring
instrument business as "the original point of manufacturing"that provides society with precision and reliability instead ofseeing it as mere sale of measuring instruments.
No activity of "manufacturing" is possible without the process of"measurement." Also, measuring accurately is indispensable forour customers to provide reliable products to society. To convey
this idea to society on a broader basis, we are committed to thefollowing efforts.

Multilingual Documents

In many countries where we have customers of semiconductor
manufacturing equipment, English is spoken as an official
language. By contrast, measuring instruments are used by awide range of customers in various environments and situations.
To enable daily inspections and troubleshooting to be performedby customers themselves, we are preparing a troubleshooting
manual and procedure documents in languages of the countries
concerned. In fiscal 2017 multilingual manuals for new products
were created and released.

Metrology Center

Aiming to establish ourselves as a top brand worldwide so thatmeasuring is always associated with Tokyo Seimitsu, "Metrology
Center" is opened in Tsuchiura and Hachioji Plants.
Customers who visit this center can have hands-on experienceswith various kinds of measuring instruments and techniques that
help solve their problems. The center also offers many otherservices, such as proposing possible solutions and giving
opportunities to operate our products for training purposes. We
have received positive feedback including "Glad to have visited,""Impressed," and "Definitely want to come back." The centers
are successfully contributing to customers' value creation.
In the Center at the Tsuchiura Plant, a Call Center has been
established to provide consultation service on metrology,
handling of products, and support trouble-shooting. In fiscal
2017, 10,697cases were handled by the Call Center.

Training for Local Engineers Overseas

The global service department for measuring instruments invites
engineers from overseas plants to the Metrology Center at the
Tsuchiura Plant for intensive training. Basic training for newengineers and advanced training targeting skilled andexperienced engineers are offered. In fiscal 2017 basic training
was conducted for 8 participants from 2 countries, whileadvanced training was carried out for 18 from 11 countries,
strengthening the global support system.
ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

13

Functions of the Metrology Center◀

Through explanations of measuring instruments and methods, training for measuring instrument operation, etc.,
we propose various solutions to address customers' needs and problems.

Solution proposal

Also, in cases where customers are unable to conduct measurements internally because they have nomeasuring instruments or their measuring instruments do not have the necessary measurement function,
we offer "consignment measurement" service whereby we conduct measurements for these customers.
We provide support to customers who have purchased measuring instruments from us, by offering
guidance at the training school that is held regularly, giving advice on a daily basis via call centers, etc.

Customer support

Also, by training service engineers at overseas offices, we ensure that excellent support service can beprovided even after the delivery of the measuring instrument, with the goal of developing lifelong
relationships with customers.

Opportunities to learn
about our products
and measurement

For customers who have our measuring instruments, trading companies and dealers that deal with ourmeasuring instruments, universities, high schools, local enterprises, etc., we hold events such as plant tours,
product workshops, and metrology seminars in order to deepen their understanding of metrology and help themunderstand our products through various product exhibits.

Metrology Center (Tsuchiura)

14

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationship with Customers

Commitment to Customer Satisfaction■ Activities of Application Teams
The application team of Metrology Company provides seminars,
lectures, and metrology guidance upon request from various
parts of Japan and organizes business fairs and open-houses
upon request from customers.

Actual Activities of Application Teams (Fiscal 2017)◀

Sessions and metrology guidance at public organizations (8)Seminars, lectures, etc. (17)
Private trade shows, open-houses, etc. (12)■ Improvement Activity Based on
Questionnaire Surveys
We started questionnaire surveys on the Web this fiscal year
(fiscal 2017), seeking to eliminate input errors, improvecustomer response and make entry easier.
Questionnaires can now be filled in simply by a click, shortening
the time required to complete.
As a result, the number of responses to questionnaires thisfiscal year more than tripled compared to the previous time.
Totaling the results has also become easier. Here are two
examples of the results of this year's questionnaire, probers andblades.
We will continue to improve user-friendliness of the system
based on customers' feedback.

Training sessions (445)*The numbers in the parentheses indicate the numberof events conduced in fiscal 2017.

Results of the 2017 Questionnaire(Prober)

4

Fiscal 2016
Fiscal 2017

3
Point
2
1

Sales

Product
overview

Support

Quality

Level ofsatisfaction

Average scores (4: Satisfactory, 3: Fair, 2: Less satisfactory, 1: Unsatisfactory)

4

Results of the 2017 Questionnaire(Blade)Fiscal 2016
Fiscal 2017

3
Point
2
1

Sales

Performance

Delivery date

Level ofsatisfaction

Average scores (4: Satisfactory, 3: Fair, 2: Less satisfactory, 1: Unsatisfactory)

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

15

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

Basic Stance on Procurement
Suppliers provide the materials, components, and services thatare necessary for us to deliver high-performance and highquality products to customers, and we consider all of them ourvalued partners. In order to build win-win relationships withthese suppliers, it is essential to have a supply chain that fulfills
all social responsibilities including not only quality but theenvironment, industrial health and safety, and ethics.
We expect every supplier to act voluntarily as a responsible
enterprise committed to meeting the needs of the international
community and work together with us so that we can turn our
entire supply chain into a robust value chain and promotevalueadded manufacturing.

Supply Chain Enhancement ★
Tokyo Seimitsu has declared compliance with RBA (Responsible
Business Alliance: old EICC). We ask suppliers for cooperation
to comply with international standards so that our entire supply
chain can meet demands of the environment and global
community.

■ Formulation of CSR Guidelines for Suppliers
and Request for Cooperation
In order to fulfill expectations of RBA and the global community,
we have created "Tokyo Seimitsu CSR Guidelines for Suppliers"
which state the 'procurement policy' and stipulate guidelines for
suppliers in 'human rights and labor,' 'safety and health,' 'theenvironment,' 'ethics,' 'safety and quality' as well as 'information
security.' We ask for suppliers' understanding of the guidelines
and cooperation in promoting sustainable procurement.

■ Establishment of Supplier Survey System
As a study into suppliers' state with CSR, Tokyo Seimitsu
started a survey in fiscal 2016 using an "SCM check sheet." The
results show the average score is 88.4 (out of the maximum of100) and that more than 90% of the suppliers scored 80 or
higher. Items with lower scores were "promotion of women's
advancement," "biodiversity" and "business continuity plans in
the event of an emergency." We are undertaking improvementson these items in cooperation with suppliers.
We also visit our suppliers, inquire how they work on CSR as
well as their difficulties and discuss ways to assist them inovercoming challenges. We are advancing collaboration in orderto have our entire supply chain fulfill social responsibilities bydeepening close cooperation with suppliers.

Questionnaire on
CSR

Scores in theseventies,
3.7％

Scores in
the nineties,
43.5％
Scores in
the eighties,
52.8％
Scores in the seventies
Scores in the eighties
Scores in the nineties
16

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationship with Suppliers■ Workshops and other events for suppliers
The "ACCRETECH Cooperation Group" organizes workshops.
In workshops information is provided and exchanged withregard to industry trends as well as market and societal needs.
● In the workshop in fiscal 2015, we presented the concept of
CSR, explained about consideration for human rights such as
elimination of child labor and forced labor as well as for theenvironment and requested for cooperation in fulfilling CSR
for the entire supply chain.

I n the workshop in fiscal 2016, we asked for further
cooperation for CSR activities including participation in thesurvey with the "SCM check sheet."● In the fiscal 2017 workshop, after describing "the trend in
CSR," we commented on the survey results from the previous
fiscal year and shared what Tokyo Seimitsu did for "promotionof women's advancement," the area with slower progress. We
also conducted a "training session to learn from the lessons of
Kumamoto Earthquake."●Workshop for suppliers

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

17

Relationships with Employees
To enable our employees to work lively, we strive to enrich the work environment
where each individual worker remains mentally and physically healthy and safe andcan exercise their full potential and we also promote human resources development.

Employment and Human
resource development■ Basic Views on Employment and Human
resource development
We seek to have diversity and respect different viewpoints andvalues in order to create new values through synergy effects.
We promote diversity, expand responsibilities for women andpeople with disability, expand global job opportunities, andexclude discriminate based on races, religion, nationality, or
disability. We promote the work-life-balance, create a healthyand safe work environment, and encourage employees to fulfil
their life both at work and home.
Various types of participative training programs are provided to
employees to encourage awareness and e-learning thatcombines mandatory and elective subjects to create anenvironment for sustainable growth through innovation by
diverse people.

5. Provide training aimed at encouraging female employees to raise theirawareness of career building, and ensure that superiors motivate
female subordinates.
6. Ensure that each employee creates her own career plan in consultation
with her superior and is developed from a mid- and long-term
perspective.
7. Raise the awareness of managers about the development of female
subordinates.
8. Raise the awareness of managers about the work-life balance anddiversity management.

six months. Nine members were selected from a wide range ofgenerations and with different family structures to collectopinions impartially. The members conducted in-housequestionnaire surveys, took a course by a social insurance
consultant to the company, researched cases of othercompanies and attended seminars, while holding regularmeetings and vigorous discussions. A presentation was made inAugust to the management, who commented that the views
from the female perspective helped them build deeper
awareness and expressed their support to the proposal. Efforts
are underway for implementation.

■ Promotion of Work Style Reforms ★
We are improving the environment of culture and systems thatencourage employees to understand different lifestyles andvalues each other and accept diversity.
Particular focus is placed on the employment of women, andvarious activities are conducted to advance women such as
expansion of their job responsibilities, career plan guidance,
and flexible work systems for their life events.

Women's Advancement : WG (Working Group)
Activity

For creation of a work environment that facilitates advancementof female employees, a women's working group was formed in
February 2018 to formulate a proposal from the perspective of
women themselves and the group carried out the task for about

Action Plan for Promoting Employment and Careers of Women● Goals
1. E
 nsure that women account for 30% or more of new graduate job
applicants.
2. E
 nsure that female regular employees account for 20% or more of thetotal number of employees (numbers of hired college and high school
graduates and mid-career workers combined).
● Action Plan
1. S
 et a policy and goals for increasing the ratios of female job applicantsand hired women.
2. E xamine the possibility of assigning female employees to divisions
where no women have been hired or assigned before, and consider
assigning female employees to divisions and jobs to which no or few
women have been assigned before.
 xplore active public relations approaches for new graduate
3. E
recruitment planning for each fiscal year.
4. R eview application requirements and recruitment standards that are
difficult for women to meet (to make the selection process just and fair
for all applicants regardless of sex).
18

Presentation to the management

Current Status of Employment of Women

The ratio of female new graduate applicants slightly increased,
while the ratio of women hired decreased as a result of anincrease in new male employees in production and in technicaljobs. The ratio of women on the payroll is increasing. We willcontinuously make more efforts in recruitment and aim toachieve higher ratios of women both in hiring and on the payroll.

Hiring of New Graduates
as of March 2017as of March 2018

Ratio of female job
applicants【 30%】
22.4％
22.9％

Ratio of women hired
【20%】
15.6％
11.6％

The figures in square brackets are the goals.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationships with Employees

Tokyo Seimitsu is committed to creating a work environment
where people with disability can be socially independent andactively play their roles. As part of such efforts, we areupgrading facilities to make them barrier-free and creating
workplaces and jobs for the disabled. We also collaborate withpublic job centers (known as Hello Work), employment support
centers for the disabled as well as special needs schools in
identifying positions suitable for individuals' aptitude at the timeof hiring and also in providing support after they join thecompany. Simultaneously, prospective workplaces for thedisabled receive in-house training on support for andcommunication with workers with disability in an effort to createa working environment friendly to the disabled. The employment
rate has increased to 1.9% (June 2018) from 1.7% in theprevious fiscal year. We will continue our efforts to achieve themandatory employment rate (2.2%).

Measures to Reduce Working Hours

The regular annual working hours at Tokyo Seimitsu in fiscal
2017 are 1855.4 hours (with 127 holidays a year in fiscal 2017),
approximately 3% lower than the regular annual working hours
in fiscal 2017* reported in the "2017 Comprehensive Survey on
Working Hours."
To manage working hours, a system was introduced to record
the time when employees enter and leave the gate in Hachioji
and Tsuchiura Plants. Differences between the time of arrivaland departure reported by employees and the time recorded inthis system are checked to understand the reality of theirworking hours. As a concrete step to reduce working hours,
every Wednesday and bonus payment days are marked as the
day to leave the office at the end of office hours. We try toensure that employees take a substitute day off when they must
work on a holiday. The section in charge also monitors theutilization of the long vacation system and uses the information
to promote higher usage. As a result of these measures
overtime work is decreasing. (5% reduction from the previous
fiscal year)
We will continuously and actively work to reduce annual working
hours and to encourage employees to take vacations.
*The regular annual working hours in fiscal 2017 reported in the Institute ofLabor Administration Report No.3938, "2017 Comprehensive Survey on
Working Hours," are 1908 hours with 119.7 holidays a year.

Family Leave Systems

Tokyo Seimitsu has its own family leave systems which go wellbeyond the statutory standards to fully support employees withsuch tasks as childcare and nursing care of family as well as
those who are ill or injured.
Parental leave can be taken until the child becomes three yearsof age and the company pays 20% of the pay to employees onchildcare leave while the child is younger than two years old.
The short-time working hours for parents allows a reduction of
three hours a day until the child enrolls in a junior high school,proving to be helpful to working parents.
Employees who handle work as well as nursing care are also

supported. They are paid 20% of the pay while on nursing careleave, in the same manner as in childcare leave, and they can
reduce working hours by up to three hours a day.
We also have a compensation system that allows employees amaximum of two years and a half for long-term sick or injury leave
to ensure that they can concentrate on treatment without anxiety.

Long Vacation System

We have adopted a system to allow a "long vacation" of fiveconsecutive business days at any given time every year inaccordance with a life plan of individual employees or theirfamily, contributing to achieving a work-life balance.

■ Human Resources Development
Human Resources Development Policy

The new human resources development scheme wasintroduced in April 2018, enhancing development of humanresources from the medium- to long-term point of view.
With "customer satisfaction" as our basic philosophy andcompliance as a given, Tokyo Seimitsu regards the educationand training system as "an important measure to bring out
strength and competence of employees" from the viewpoints of"diversity" as a result of progressing globalization and ofcontinuous "development of professionals."
The system is structured based on the notions that "anenvironment and an opportunity (platform) are offered where
each and every employee can spontaneously participate intraining and education" and that "the company provides
assistance to gain necessary knowledge synchronizing with
employees' growth stage."
It is essential that outcomes of training are utilized in work. The
system is based on the premise that a training plan is designed
to also include "an opportunity" (assignment) to actually utilize
the knowledge to be learned in the training and that the trainee
and the superior build consensus on the training.

Development Scheme and Training Systems

Tokyo Seimitsu has various training systems in place for
employees to develop their capabilities, which are incorporated
in the human resources development scheme. "Level-specifictraining" is offered for each level of employees' careers,"common training" is to learn basic business skills and others,◀

Employment of the Disabled

Main Training Systems
Type of training

Contents

Level-specific training

Training in line with requirements of positions for
executives, managers and newly promoted
employees, including personnel management
training, harassment training and others

Common training

Company-wide and cross-sectional training,such as training for new employees, logicalthinking training, training to promote women's
advancement, compliance training, etc.

Department-specifictraining

Training to gain expertise required in eachdepartment, such as basic development anddesign training, basic QC training, patent
training, etc.
ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

19

and "department-specific training" is for employees to acquire
expertise required by duties of each department. We haveintroduced an e-learning system and also encourage employees
to actively attend seminars outside the company. A full programis in place to enable self-development for each employee.

conducted twice a year and the results are submitted to Audit
Department and reported to Board of Directors. The committee
is subject to auditing by Audit Department.

Industrial Safety Activities

In addition to work environment risk assessment through safety
patrol and risk assessment when new machines are introduced
or work procedures are changed, education and training on
machine operation, heavy machine and wiring work areprovided as necessary to avoid danger.
Besides in-house training, employees are encouraged toactively attend industrial safety training sessions relevant totheir work in external educational institutions.

Training for managers in women's advancement

Industrial Health and Safety■ Basic Views on Industrial Health and Safety
We promote safety, health, and disaster prevention activities,
giving top priority to the "physical and mental health and safetyof employees." In fiscal 2016, we started to conduct stresschecks on all employees and group analyses to identify
workplace tendencies. We intend to promote our effort to createa work environment where employees can work safely andactively in a healthy condition both physically and mentally.

>Activities performed in fiscal 2018
Hachiouji Plant :● Safety and health education training for new employees (whenthey were hired)
44 employees● Forklift operating skills training
1 employee● Slinging skills training, Special training in crane operation

5 employees● Special training in crane operation
5 employees● Training for forepersons and safety and health managers

2 employees● Training for chief workers handling organic solvents

8 employees● Training for chief workers handling specified chemical
substances, tetraalkyllead, etc.
7 employees● Special education for workers exposed to dust
8 employees● High-pressure gas safety training
22 employees
Tsuchiura Plant :● Forklift and crane safety operation training attended
34 employees■ Promotion of Work Safety ★
Reduction in Accident Rate (KYT Activity)

Major causes of disasters and accidents involving generalmachinery in manufacturing are "getting caught or cut, reaction
to action and actions unreasonable or by force."
In Tokyo Seimitsu all the employees devise and implement
thorough measures to prevent recurrence in an effort to reduce
the accident rate.
We also deploy KYT activities as a preventive measure andstrive to lower the accident rate. (A total of 95 activities havebeen conducted since fiscal 2017.)■ Safety and Health Promotion
Activities of the Health and Safety Committee

Each plant has a Health and Safety Committee, led by the plant
manager. The Committee is responsible for industrial safety
related to the environment, machinery, and work, industrial
health related to infection, food poisoning, mental health,chemicals, and disaster prevention and mitigation such as firefighting, traffic safety and emergency aid, based on an annual
plan approved by the Board of Directors. Internal audits are
20

High-pressure gas safety training (at Hachioji Plant)■ Industrial Health Activities
Workplace and 5S Patrols

Weekly patrol by the health supervisor and regular 5S patrol are
conducted to keep workplace clean and in order. In fiscal 2017,
we started a scoring system to recognize high-performing
workplace.
Eight sections have been recognized and each section is further
intensifying its effort toward 5S.
Separately from audits conducted by public organizations suchas healthcare centers, employees patrol the kitchen for theemployee cafeteria to improve the hygiene of the workplace.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationships with Employees

Handling of Chemicals

Tsuchiura Plant conducts an annual drill for prevention ofcleaning chemicals splash as a drill on the assumption of an
emergency. 81 employees from factory and technicaldepartments which use cleaning chemicals participated in the
drill and learned how to mop up splashed chemicals anddispose them.

Efforts to Create Healthy Workplace■ Traffic Safety and Emergency Aid

Sections to control or use chemicals are obligated to conduct
regular inspection and quantity check. Internal audits are
regularly performed by qualified internal auditors per ISO14001.
The Regulated Substance Control Committee under the Safety
and Health Committee patrolled storages a total of seven times
in fiscal 2017 including follow-up patrol.
In fiscal 2016, risk assessment of chemical became mandatory.
In that year, 22 risk (total 33) assessments were conducted at
the two plants, including new adopted chemicals and reviewsfor chemicals been used.
We have also strictly reviewed handling of regulated substances
to create strict handling standards, and in fiscal 2017 weestablished 11 (Total 59) new handling standards.

If an employee has mental or physical disorders, it may affectnegative impact of employees and their families, also theworkplace and company. We provide health support such as
regular consultations with an industrial physician and have
prepared system in place to respond to sudden circumstancesand support employees. We regard results of annual stresschecks as important information from the systematized healthmanagement's point of view. By creating circumstances toencourage employees to undergo the check, the rate of
employees who take the check is higher (92% in fiscal 2018) in
our company than the rate publicized by Ministry of Health,labour and Welfare.* Systematic analysis is performed based on
check results to take measures for mitigation of workplacestresses.
We are now creating a Plan to "Maintain Mental Health" and a"Return-to-Work Program" to take health support measures.

At both plants, company car users (including permitted drivers)
and those who drive to work (including motorcyclists) are
required to attend traffic safety programs. Every year, several
employees attend emergency aid training to raise our
emergency response capacity.
>Activities performed in fiscal 2018
Hachiouji Plant : Traffic safety training by the Hachioji Police
Station, attended by 115 employees.
Advanced emergency aid training, attended by
one employee
Tsuchiura Plant : Traffic safety training by the Tsuchiura Police
Station, attended by 200 employees
Standard emergency aid training, attended bythree employees*78% according to Industrial Health Division of Ministry of Health, Labour andWelfare (publicized in July 2017)■ Disaster Prevention and Mitigation with Fire
BrigadesEach plant has its own fire brigade and conducts regular training
as well as an annual fire or earthquake evacuation drill. In linewith the annual plan we equip the fire fighting team, a unit of thefire brigade, with digital CB radio to enable appropriate firefighting and communication even in an emergency (power
failure). We also conduct drills once or twice a month in addition
to drills on the assumption of a leak accident to enhance ourdisaster response capacity.

Exercise of the fire fighting team during an evacuation drill

Traffic safety training● New record for no-accident continues at Tsuchiura Plant

Tsuchiura plant has maintained a high standard of safety andhygiene environment, and created workplace where employees
can work safely. As of December 31 of 2017, the Plant made a
new record of no accidents for 27 years in row. This record isstill counting now. The Plant received an award as a NoAccident Plant from the Kandatsu Industrial Council of Tsuchiura
City.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

21◀

Relationships with Shareholders
and Investors
We are committed to implementing transparent, proactive IR activities to ensurethat shareholders and investors gain a deeper understanding of Tokyo Seimitsu.

Stance on Information
Disclosure to Shareholders
and Investors
We make efforts to enhance transparency and build long-term
relationships with our shareholders and investors by providing
accurate information on our business results, financial situation,and business strategy in a timely, fair, and easy-to-understandmanner.
Given the growing ESG investment globally, particularly inEurope, and the introduction of the Japanese version of
stewardship code, we have decided to issue the "CSR Report"with the focus on disclosure of nonfinancial information. ESG
goals are included in the mid-term management plan starting infiscal 2018. Our future goal is to provide an "integrated report"that explains the relationship between financial information andnon-financial information in an easy-to-understand manner.

Proactive IR Activities■ Shareholders' Meeting
In June every year, we hold a regular shareholders' meeting in
Hachioji where our headquarters are located. To ensure that it isattended by as many shareholders as possible, we hold ourmeeting on a day outside the period during which many othercompanies hold their shareholders' meetings.
According to the articles of incorporation, the president chairs
the shareholders' meeting and explains business results, themarket status, the Tokyo Seimitsu Group's business strategy,
earnings forecast, etc. We also have a session where we
receive opinions and questions from shareholders, whichenables direct communication between shareholders andmanagement and allows shareholders to gain a deeper
understanding of the Tokyo Seimitsu Group.
A shareholders' meeting was held on June 25, 2018, which wasattended by 119 shareholders.
We received questions about our strengths, current demandsituation, compliance education for employees, etc. The
discussion was highly productive.

22■ Shareholder Newsletter
We send a "shareholder newsletter" to shareholders twice ayear to inform them of our business results, latest topics, andnew products.
2017 July shareholder newsletter consists of four pages: twoconventional pages and two pages reporting the results of theshareholder questionnaire survey (conducted from Dec 2016 to
Jan 2017).
The survey results are also available on our website.
https://ir.accretech.jp/ja/stock/general_meeting.html■ Business Results Briefing
We hold a business results briefing for institutional investors andsecurity analysts on days around the dates of announcement ofinterim and full-year financial statements. At this briefing, thepresident explains the consolidated business results, outlook,
the Tokyo Seimitsu Group's business strategy, etc.

■ Briefing for Individual Investors
We also hold a briefing for individual investors. It was held inMarch 2018 where the market situation and management policy
including CSR policy was explained. We received many
individual investors and the talk by the president was also wellattended.

■ Information Disclosure
Tokyo Seimitsu is listed on the first section of the Tokyo Stock
Exchange. According to law and regulations of the Stock
Exchange, the following information is disclosed. From fiscal
2017, English translated Financial Result is disclosed on the
English website of the Tokyo Stock Exchange.
Information on consolidated statement (Financial result,summary presentation, etc.)● Securities report● Corporate governance report● Internal control report● Information on business, management, and performance that
may seriously affect the decision on investment, such as noticeof independent directors, stock options, and changes in
directorship.
●

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationship with the Global
Environment
We make all-out efforts to reduce the environmental impact of our entire value
chain, including the life cycle of our products, achieve a sustainable society, andkeep the global environment.

Basic Stance on the Environment■ Core Environmental Philosophy
Based on the concept of "Manufacturing is possible only when
the global environment is preserved," we formulated the "Core
Environmental Philosophy" in 1997.
The "Company Environmental Policy" reflects this corephilosophy, and the "Environmental Policy" defines the actions
that all employees are required to take in their businessactivities. We conduct all business activities based on thisphilosophy and policy.

Core Environmental Philosophy
Recognizing global environmental protection as a critical issue shared by the entire human race, Tokyo Seimitsu makes
environmental protection an integral element of all the areas of product development, design, manufacturing, and service
activities.

Company Environmental Policy
In all business activities, from manufacturing of semiconductor manufacturing equipment and precision measuring
instruments to the provision of services, all employees of Tokyo Seimitsu must work in an environmentally responsible
manner to minimize our environmental impact.

Environmental Action Guideline
1. We will resolutely conduct environmental protection activities based on a company-wide environmental management
system that is overseen by the Environmental Management Committee.
2. ‌	We will prevent pollution and protect the environment by complying with environmental laws, regulations, agreements,
and the Tokyo Seimitsu environmental policy, as well as by establishing voluntary goals.
3. ‌	We will develop and improve environmentally responsible products (reductions in energy and resource consumption andnon-use of harmful substances).
4. ‌	We will establish environmental objectives and targets for the following measures concerning the environmental impact ofour business activities, make improvements continuously to achieve greater environmental performance, and perform
internal audits and take other measures to make necessary changes.
1) Effective use of natural resources by lowering energy and resource consumption, reducing waste materials, andincreasing recycling
2) Proper management of harmful substances, reduction in their use, and adoption of alternative substances
3) Prevention of global warming through greenhouse gas emissions control
5. ‌	We will conduct training programs for all employees to raise awareness of environmental protection. We will also ask for
the understanding and cooperation of suppliers in the execution of environmental protection activities.
6. ‌	We will promote the environmental protection activities, such as use of sustainable resources, climate change measures,and biodiversity conservation, through each business operation to realize a better global environment and contribute tosocial development.
7. The environmental management system is applicable to the activities of the Semiconductor Company and Metrology
Company, as well as to the environmental protection activities of the plants related to products, services, and businessactivities.
8. ‌	We will disclose this environmental policy to the public and make all employees aware of this policy.

■ Internal Environmental Audits
Periodical internal environmental audits are conducted twice ayear to check the implementation of action as prescribed in theenvironmental management manual. An audit team is formed

with two or three members including a chief auditor as the teamleader and they audit based on the checklist made of findings ofevery year.
ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

23

Eco-products ★
We are committed to efforts to reduce the environmental impactof our products and contribute to the development of asustainable society by developing environmentally friendly
products in compliance with the Tokyo Seimitsu Engineering
Standard*1 (TES*2). In developing products, we give top priority
to high precision and high quality. Our measures to curb
environmental impact include reduction in the environmental
impact resulting from the use of products (energy conservation
and reduction in water consumption), measures for chemical
substances contained in products, and reduction in the amountof materials used. To realize environmentally friendly products,
not only direct departments, such as development, design,purchasing, production, manufacturing, and shipping, but also
indirect departments, such as planning, sales, administration,and services, work together. Collaboration with suppliers andother external partners is also vital. We continue to raise theawareness of the environment by providing internal
environmental training and other education programs andbolster the collaboration with external partners.

*1 Tokyo Seimitsu Engineering Standard (TES) :A set of basic rules that apply to development, design, manufacturing,production management, quality control, services, and environmental
management pertaining to production activities. It refers to binding andmandatory rules, standards, criteria, and guidelines.
*2 TES configuration : 1. General Standards, 2. Product Standards,
3. Management Standards, 4. Design Standards, 5. Equipment Standards,
6. Work Standards

24■ Environmentally Friendly Products:
Life Cycle Assessment (LCA) on ProductDevelopment Stage
Being aware of our responsibilities for environmental impact inthe entire life cycle of our products, Tokyo Seimitsu in 2016
standardized the assessment criteria for environmental impact
in each stage from production to disposal of products and madethem mandatory items for assessment in the productdevelopment stage. Simultaneously, we perform life cycle
assessment (LCA) of existing products in production and strive
to improve their assessment in comparison to what it was before
and mitigate environmental impact.
Products of Tokyo Seimitsu, due to the nature of production
equipment, have long hours of operation and a long life.
Consequently, when converted into CO 2 emissions, power
consumption from usage of products accounts for a good dealof total emissions over the life cycle. This has prompted us tofocus on developing and designing products with lower power
consumption.
Life cycle assessment (LCA) is a technique to quantitatively assess environmental impacts associated with all the stages of the life of a product or service(procurement, manufacture, distribution, sale, use, disposal, and re-use).

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationship with the Global Environment

Environmentally Friendly Products

Semiconductor Manufacturing Equipment

Dicing Machines AL300P

Dicing Machines AD3000T-PLUS

This is a laser patterning machine and needs no pure water

A 30% saving in materials used compared to A-WD-300TX and a 20%

which conventional dicing blades required in processing.

saving in installation space contribute to reduction in resources used.

Precision measuring instrument

SURFACE TEXTURE
MEASURING INSTRUMENT
SURFCOM TOUCH 550

The moving speed has more than tripled compared to the previous type.
Cycle time of measurement has dramatically improved. The product isgreatly conducive to reduction in operating time and man-hours in a factory.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

25◀

Eco-factoryTokyo Seimitsu is a machinery manufacturer which also processes precision parts in-house. More than 99% of our energy consumption
is power used in production plants and we also use a fair amount of water for cutting. Production of products that use water to process
semiconductors is increasing and we continue to make efforts to reduce power and water consumption.
Many paper drawings for parts processing and assembly are used due to a high number of mechanical parts in equipment and we arecommitted to reduction in paper purchase as a priority measure to cut resource consumption. We also strive to recycle as much as
possible scrap metal and waste fluid from processing.

■ Efforts to Prevent Global Warming ★

Most of CO2 emissions by Tokyo Seimitsu is conversion from electricity purchased for operating plants in Hachioji and Tsuchiura and ourpriority in implementing global warming prevention measures is to save power. Measures such as replacement of air-conditioning andcompressors by energy-saving types, control of power efficiency balance and installation of LED lighting and motion sensors have been
implemented to achieve higher efficiency in power consumption. As a result, despite increased production volume and plant expansion,
we succeeded in power consumption reduction in basic production unit*1 in the medium term.
Solar power generation was started in Hachioji Plant No.5 in fiscal 2015 and in Hachioji Plant No.6 in fiscal 2016. The total output infiscal 2017 was more than 450,000kWh. This is equivalent to annual reduction of more than 220t-CO2 in emissions. We are determined
to continue our efforts to curb global warming through power-saving production and expansion of renewable energy usage.
Hachioji Plant consumes approximately three times more electricity than Tsuchiura Plant and thus conducts every year third-party
verification to verify these initiatives.
*1 basic production unit: power consumption (water used and paper purchased) / plant production volume (one million yen) (Electricity, resources, etc. used for
production of one million yen)

Target for CO2 Emissions Reduction : 5% reduction in basic production unit by fiscal 2019 compared to fiscal 2014
Power consumption (kWh/million yen)
Conversion (to CO2 emissions) (t-CO2/million yen)

Results from fiscal 2014 Results from fiscal 2015 Results from fiscal 2016 Results from fiscal 2017
384.8
367.7
416.3
370.2
0.205
0.187
0.204
0.181

Targets for fiscal 2019365.6 or less0.195 or less

■ Promotion of Resource Saving ★

Water consumption is increasing year by year due to rapid rise in production of semiconductor manufacturing equipment that uses
water. Improving the recovery rate of pure water into filtration equipment and reusing temporary cooling water are being examined as
reduction measures.
We have gradually taken steps to reduce paper usage such as decreasing drawings for outsourced parts processing and databasing inhouse work procedure sheets to be used on a tablet. As a result, volume of paper purchased is steadily declining. We will continue toidentify work instructions and drawings on paper that can be substituted and constantly make efforts for reduction.
Target for Water Usage Reduction : 5% reduction in basic production unit by fiscal 2019 compared to fiscal 2014
Water usage (m3/million yen)

Results from fiscal 2014 Results from fiscal 2015 Results from fiscal 2016 Results from fiscal 2017
2.00
2.01
2.08
2.19

Targets for fiscal 20191.90 or lessTarget for Volume of Paper Purchased : 5% reduction in basic production unit by fiscal 2019 compared to fiscal 2014
Volume of paper purchased (kg/million yen)

Results from fiscal 2014 Results from fiscal 2015 Results from fiscal 2016 Results from fiscal 2017
0.562
0.532
0.520
0.460

Targets for fiscal 2019
0.534 or less

■ Recycling of Wastes ★

We try to reduce the amount of wastes, for example, by using reusable plastic boxes instead of cardboard boxes.
All of the wastes from Hachioji Plant are recycled including thermal recycling.
Target for Recycling of Wastes : Recycling rate of 95% or higher
Recycling rate
26

Results from fiscal 2014 Results from fiscal 2015 Results from fiscal 2016 Results from fiscal 2017
91.3%
96.3%
96.2%
98.3%

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Targets for fiscal 201995% or higher

Relationship with the Global Environment

Chemical Substances Management
In regard to chemical substances we use and those contained in parts, we are committed to minimizing impact on the environment andpeople by not only observing laws and regulations in Japan and in export destinations but also managing non-regulated chemical
substances based on voluntary standards.

■ Chemical Substances Management Based on Voluntary Standards

We applies internal company regulations which specify substances with the potential to pollute the environment. When thesesubstances are used, the responsible person for environmental management must be notified. The amount of each substance used, thestorage location, and the maximum storage amount are identified. SDS* and emergency tools are made available and regular
contingency drills are conducted.
*SDS : SDS stands for Safety Data Sheet. Information on the name of the chemical substance, the manufacturer, handling methods, the nature of the hazard andtype of toxicity, physical properties, impact on the environment, safety measures, emergency measures, and actions in the event of an emergency arerecorded on this sheet for each chemical substance. The PRTR Law requires that manufacturers and other companies compile data on the amount ofchemical substances discharged and the amount of waste materials transferred, which must be reported to the national government via local governments.
The SDS must also be attached to this report.

■ Specified Chemical Substances Management

Among the chemical substances we handle, the report has been submitted for the two substances that exceed the reference amountspecified in the PRTR. Hachioji Plant also handles five substances designated as requiring special management in the Nature
Protection Ordinance of the Tokyo Metropolitan Government. The report has been submitted on these substances.

■ Control of Chemical Substances Contained in Products

In fiscal 2016 we launched a new cloud-based system to control chemical substances contained in product parts and engage ininvestigation regarding the RoHS Directive, the REACH regulation and others. More than 400 suppliers so far attended the explanatory
meetings and were requested to strictly control and report chemical substances contained in parts procured. Our precision measuring
instruments have been compliant with the RoHS Directive since July 2017.
Semiconductor manufacturing equipment is exempt from RoHS since it is a large-scale stationary industrial tool, but we are taking steps
to be compliant.

Establishment of RoHS Analysis Room

We set up RoHS Analysis Room in fiscal 2018 and engage in analysis by installing equipment to analyze chemical substances
contained in parts.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

27

Overview of Environmental Impact
Overview of Environmental Impact in fiscal 2017◀

Environmental Impact of Tokyo Seimitsu

INPUT
EnergyWater

25,163 MWh

Electricity(Hachioji and Tsuchiura)

5,270 m3Gas(Hachioji and Tsuchiura)

Tap water

21,898 m3(Hachioji and Tsuchiura)

Well water 127,646 m3(Hachioji)

Environmental Impact of Customers

INPUT

Fuel (Heavy and light oils/kerosene/gasoline)

25,934 L(Hachioji and Tsuchiura)

Development
and design

Material
procurement

Manufacturing

Packaging anddistribution

Operation of
products

・ Paperless
・ Reduction in parts

・ Green procurement
・ Reduction inpackaging materials
・ Use returnabletransport boxes

・ Improvement oflines of movement
・ Automatedinspection
・ Energy saving

・ Reuse of packaging
materials
・ Scheduled operation
・ Prohibition to keep avehicle idling・ Air use reduction
・ Energy saving

12,229 t-CO2

・ Establishment of new ・ Compliance withservice centers
REACH and RoHS
・ Effective maintenanceservices

Plant waste water

143,142 m3

Electricity

12,146 t-CO2

Gas (LPG)

21 t-CO2

Waste materials

Fuel (light oil)

10 t-CO2

Hachioji 500 t

Fuel (kerosene)

1 t-CO2Tsuchiura 331 t

Fuel (gasoline)

51 t-CO2↓OUTPUT*Discharge into sewerage

831 tTarget: Tokyo Seimitsu Hachioji Plant and Tsuchiura Plant
Calculated using 0.489 as the power CO2 emission factor (factor for fiscal 2017).

Recycling rate:

98.3％

Final disposal amount 13 t
Dispose Hachioji 0 t
Tsuchiura 13 t

OUTPUT
28

Disposal

Eco-products

Eco-factory

Total CO2 emissions

After-sales
services

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationship with the Global Environment

History of Environmental Protection Activities
1996

Jul Started education and training on environmental

2006

protection activities.

Apr Completed the removal of all halon fire extinguishers.

Sep Established the Environmental Committee.
1997

Jan Started the Hexavalent Chrome-free Project.

Jun Started the "Cool Biz" project.
Oct Started production using lead-free solder for new
products (Semiconductor Company).

Feb Started environmental impact investigations in Hachioji
and Tsuchiura Plants as well as in the divisions.
May Created the Environmental Management Manual.

2007

Feb Received the Japan Machinery Federation President's
Award for our laser dicing machines, under the award
system for superior energy-saving products.

Sep Formulated the "Motto (Action Guideline)."2008

Mar Received a letter of commendation from the Fire Chief.

1999

Nov Stopped the waste material incinerator and later removed
it (Semiconductor Company).

2009

Nov Renewed the "approval of the excellent fire prevention
property" for Hachioji Plant.

2000

Mar Started the operation of waste water treatment facilities
discharged from such as CMP systems and back grinders(Semiconductor Company).

2010

Aug Received an award from the Tokyo Metropolitan
Government for the "Adopt-a-Road Program."

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

2011

Jun Completed the No. 5 Plant in Hachioji.

Apr Renewed ISO 14001 certification.

2012

Jul Launched the cutting and grinding tool business.

2013

Mar Obtained ISO14001 certification, including cutting andgrinding tools.

2015

Jun Installed and began operation of photovoltaic generation
facilities at Plant No. 5.

2016

May Began operation of Plant No. 6.

1998

2001

Mar Obtained ISO 14001 certification for the two plants
simultaneously

Nov Revised the environmental policy.

May Opened the new main building at Hachioji Plant.
2002

Mar Scrapped privately owned incinerators (Metrology
Company).

2003

Mar Established the "ACCRETECH Green Procurement
Guidelines."

2004

Feb Updated air conditioners from heavy oil boilers toelectrically powered devices (Metrology Company).

Dec Installed and began operation of photovoltaic generation
facilities at Plant No. 6.

Aug Formulated the "ACCRETECH Group Code of Conduct."2017

Sep Issued the Environmental Report.
2005

Jun Obtained ISO14001:2015 certification.

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

Jul Held supplier briefings on hexavalent chrome-freematerials.

Solar panels at Plant No. 6

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

29

Relationship with Society
We are committed not only to contributing to society though business activities but
also to identifying the issues and needs of the individual areas through thedialogue with communities and driving social contribution activities for addressing
those issues and needs in order to help create a sound, sustainable society as acorporate citizen.

Environmental Volunteer
Activities in Local Community■ Activities in the Tsuchiura Area

● Eco-partner Agreement

Tsuchiura City has the Tsuchiura Eco-partner program in place
whereby the city government forms a close partnership withbusiness operators to address the issues of global warming,
energy, and waste and work together to create a low-carbon,
recycling-based society with the goal of passing down a better
environment to children of future generations. Agreeing with thisidea, we signed an agreement with Tsuchiura City at the end of
March 2016. In April every year we summarize our activities
over the past fiscal year in an implementation report and submit
it along with an implementation plan for the current fiscal year.
The information is disclosed on the website of Tsuchiura City
Government.

● Local Cleanup Activities ★

Tsuchiura Plant conducts monthly joint cleaning with neighboring
companies around the Nakanuki Park.
From 2006, on every Monday, assigned sections from Tsuchiura
Plant cleans the park in turn, and in fiscal 2017, an accumulated
number of employees participating in cleaning exceeded 100.
Our cleaning activity over many years has raised the awarenessof local people. In the past, the roads around the park werefilled with trash, but recently it has been improved significantly.
Nevertheless, still some truck drivers who park their truck
illegally at night throw trash on the roads. We will continue tokeep the environment around the park clean and continue tohelp improve social manners.

Local Cleanup Activities

VOICE
Reference:
Tsuchiura City Government's Website
Eco-partner Agreement

Comment from an Employee Who
Participated in the Activities

http://www.city.tsuchiura.lg.jp/page/page004517.html● Protection of Kasumigaura

In the neighborhood of Tsuchiura Plant, there is a famoussightseeing spot of Ibaraki Prefecture called Kasumigaura. To
keep Kasumigaura Lake clean and beautiful, Tsuchiura City
asks neighboring companies to submit their pollution prevention
plans. As a company operating in Tsuchiura City, we submit ourplan to the city government and promote water quality
conservation activities based on the plan.

Metrology Company
Tsuchiura
General Affairs
SectionKazuhisa
Koike

30

I had paid little attention to Nakanuki Park in
Tsuchiura City as I had never used orwalked around the park. However, after I
joined the company on December 11 lastyear, I started cleaning the park. I havecleaned a few times, but each time I felt
there was really no end to people tossing
away trash and cigarettes.
I am afraid those who illegally park their car
on the street or use the park have low
morals and I feel ashamed as a fellow
citizen of Ibaraki Prefecture.
After consultation with Tsuchiura City
Government about this, signboards of nolittering were increased as a caution, but
so far it does not seem very effective,
which is a little disappointing. However, I
am going to do what little I can tocollaborate with people in the communityand cooperate in creating a better
environment where visitors to the park canrelax even a little by continuing thecleaning activity.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Relationship with Society■ Activities in the Hachioji Area

● Cooperation with the Local Government

Semiconductor
Company General
Affairs Dept.
General Affairs
Section

Masao YatoI am a member of the safety association of
hazardous items and the society for fire controls t u d y, t w o o f t h e f o u r c o l l a b o r a t i n gorganizations for fire fighting in Hachioji andinvolved in local fire managementadministration. I serve as vice chairman of thesociety for fire control study and in March thisyear I was given a testimonial letter inrecognition of my long years of contribution to
fire managementadministration on theoccasion of Tokyo
Fire Department's
70th anniversary of
establishment.

■ Participation in the Adopt-a-Road Program ★

Since 2004, Hachioji
Plant has been involvedin the Adopt-a-Road
Program launched by
Hachioji City. We haveadopted a rotary roadon the east side of JR
Kita-Hachioji Station
and are making efforts to keep the road clean by picking trash
on a daily basis and taking care of plants on a regular basis.
Every year in April, one-month new employee training is
conducted at Hachioji Plant, and the curriculum contains
cleaning, planting, pruning and weeding around the area in frontof the station.
Hachioji City Government Website (on the Adopt-a-Road Program)
http://www.city.hachioji.tokyo.jp/kurashi/life/001/001/016/p006890.html

VOICE

Comment from an Employee Who
Participated in the Activities

I participated in the Adopt-a-Road activity
the other day. When I took a fresh look at
the area in front of Kita-Hachioji Station, I
realized there were many small trash,cigarette butts and weeds which I nevernoticed when using the station without
paying much attention. However, when I
looked around after the activity, I saw thatthe area was remarkably cleaner as if itwere a different place and that brightened
Administration
Company
me up very much. Kita-Hachioji Station is
Human Resources used by many people besides Tokyo
Dept.
Seimitsu's employees. I was reminded of
Yui Kameya
the significance of the Adopt-a-Road activity
in making the station a pleasant place forthese people to use. I hope to join theactivity regularly going forward.

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

■ SEAJ (Semiconductor Equipment
Association of Japan)

SEAJ is engaged in a wide range of activities, from statisticalsurveys and researches on the industry's issues and newtechnologies to seminars, workshops, and promotion ofstandardization, to promote the sound development of thesemiconductor manufacturing equipment industry and otherrelated industries. Several employees from our company
participate in the organization and cooperate in the developmentof the semiconductor manufacturing equipment industry.

■ Participation in the ISO Technical Committee

The International Organization for Standardization wasestablished to conduct international trade with the same
standards and rules. Over 20,000 international standards havebeen established. Its Secretariat is located in Geneva,
Switzerland and there are more than 300 Technical Committees
to deal with different categories of products. Our products are
related to TC213, dimensional and geometrical productspecifications and verification, under which several working
groups have been established to discuss various subjects suchas standards for length, expression of drawing dimensions,specifications for measuring instruments, and inspection
methods. Three of our employees as committee members
representing Japan participate in working groups for standards
for 3D coordinate measuring machines, roundness measuringmachines, surface texture/filters, and measurement uncertainty.
TC213 holds regular sessions twice a year in different venues indifferent countries to discuss new standards and revision ofexisting standards.

■ Japan Society for Precision Engineering

This organization has significantly contributed to thedevelopment of the industrial society and improvement of
production technologies, and holds academic lectures,workshops, symposiums, and plant tours as well as issue
journals. Tokyo Seimitsu participates in the Intellectual Nano
Measurement Committee, and serves its accounting auditor for
fiscal 2018. For the 2018 Spring Convention, we participated asa councilor.

■ Japan Precision Measuring Instruments
Association

The Japan Precision Measuring Instruments Association holds
comprehensive trade shows related to measurement andmetrology in general, promotes standardization to help
improvement in technology and quality, and organizes joint
workshops with other groups. Through these and otheractivities, it has significantly contributed to the promotion ofJapan's precision measuring instrument industry. We actively
participate in many of its working groups and committees aswell as the management of trade shows, thus making enormous
contribution to the development of the precision measuring
instrument industry. In fiscal 2016, we planned and organized aseminar under CMM Working Group at JIMTOF 2016. We will
also organize a seminar in JIMTOF2018, an event held every
other year. We are also engaged in editing of the JIS guidebook
under CMM Working Group.
ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

31

Group Companies
Companies of the Tokyo Seimitsu Group are shown below.

Tosei Engineering Corp.
Company Overview■Establishment: April 15, 1969
■Headquarters: 4-6 Nakanuki-cho, Tsuchiura-shi, Ibaraki■President: Kazuhiro Tago
■Sales: 14,232 million (for the period ending in March 2018)■Employees: 474 (as of March 31, 2018)(Note) The number of employees excludes those seconded to othercompanies and includes those seconded from other companies.
■URL: http://www.toseieng.co.jp/company/■Hubs: 4 plants and 13 service bases in Japan and 11 bases overseas

Major business lines
The company was established in 1969 as a subsidiary of Tokyo
Seimitsu to provide services for Tokyo Seimitsu's products anddevelop and manufacture automation and energy-saving
equipment for measurement. Since establishment, based on
the concept of "What cannot be measured cannot be
produced," it has accumulated technology and expanded its
business by providing various precision measuring instruments
and services for these instruments. The company has been
exclusively developing and manufacturing automatic
measuring instruments for production lines of automobiles,
bearings, electric appliances and electronic products. With its
precision technology as the foundation, it advanced into thefield of semiconductor manufacturing, which is now one of its
major business areas. It will make efforts to continuously
provide world's No. 1 products and sophisticated service
support based on the Tokyo Seimitsu Group's motto of"win-win relationships create the world's No. 1 products" in thefields of automatic measuring instruments and semiconductor
manufacturing equipment.

CSR Activities

CSR Activity Example 1
・Compliance and internal regulations
To become a company that can gain trust from all
stakeholders, Tosei Engineering seeks to enhance
corporate governance and compliance, and ensure healthy
and transparent management. Right decision making willachieve sustainable growth and increase corporate value ina medium to long term. To communicate the ACCRETECHGroup Code of Conduct, and other internal rules andregulations to employees, there is a system where they canview these rules over the company's Intranet at any timeand efforts are made to raise their understanding.

CSR Activity Example 3
・Industrial Health and Safety
The Safety and Health Committee at each office holds a
meeting every month. We strive to ensure employees' safety
at workplace and to provide comfortable work environment
in addition to being compliant with Industrial Safety and
Health Act and other laws and regulations. Members of the
Safety and Health Committee patrol inside the plant
regularly to ensure safety. Another effort for industrial safety
and health is to hold regular traffic safety training for all theemployees at Tsuchiura and Kandatsu Plants. It serves as agood opportunity for each employee to gain knowledge ofand raise awareness about safe driving.

A scene of
CSR activity

32

As a group company, Tosei Engineering shares thecorporate philosophy of Tokyo Seimitsu that we create theworld's No.1 products and grow significantly with ourpartners and customers by integrating the excellent
technology, wisdom, and information available in the world.
By implementing this philosophy, the company seeks toachieve sustainable growth and increase its value. Under
the Board of Directors, the CSR Promotion Committee andother committees conduct a wide range of CSR activities.

CSR Activity Example 2・Promotion of work-and-life balance
Various flexible work systems have been introduced suchas parental and nursing leaves to help employees take agood balance between work and private life. With
enforcement of the Act on Advancement of Measures to
Support Raising Next-Generation Children, its work
systems are reviewed and work-life-balance is sought for
all employees, both men and women (including non-regular
employees). In addition, as part of long-term labor
reduction, we plan to set up a fixed-time leave day once aweek and prepare a workable environment for employees
so that we can improve both work and private life.

CSR Activity Example 4・Contribution to Local Community(Promotion of Sport & Emergency Safe Place for Children)

We make our parking lot available to users of Kandatsu
Baseball Field near Kandatsu Plant on Saturdays, Sundays
and national holidays. We will continue to collaborate with
Tsuchiura City Government and try to cooperate inpromoting relaxation and sport for people in thecommunity. Our Kandatsu Plant is registered as an
emergency safe place for children (for evacuation andprotection) in the Kandatsu area. The company willcontinue to take measures to contribute to the safety of thecommunity.

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

Tosei Systems Co., Ltd.

Major business lines■Hubs: Two locations in Japan

Tosei Systems is a 100%-owned subsidiary that supports
product development of Tokyo Seimitsu in the field ofsoftware. It is engaged in development of software to beembedded into semiconductor manufacturing equipment or
precision measuring instruments for control and measurementin the unit of micron, software for the operational screen to
operate the machine, application software to compile andvisualize data in micron collected by measuring instruments
and software for key work for Tokyo Seimitsu. Exploiting thisexperience of developing software for key work, we actively
participate in the work related to replacement of the main
system of Tokyo Seimitsu, playing an important role as agroup company. We seek aptitude for software in job
applicants and hire them regardless of faculty or gender. New
employees, immediately after joining the company, undergo
two-month external training of "embedded software" inaccordance with development procedures followed byin-house training for another month before being assigned totheir post. Each prospective employee starts to be mentored
after receiving a job offer, a system designed to dispel theiranxiety. We also encourage employees already in work toattend external training to acquire knowledge necessary for
their work as well as to visit trade shows to check trends of
new technology.

Internship

ISO27001 Certification

Our internship for students offers a basic program ofembedded software, using an educational drone, to operatesomething and to do other things and is well-received by
students.

Our activities this year focused on sustained actions in thesections which already obtained the certification and on efforts
to have General Affairs Department newly certified. In August asurveillance visit and an extension to the scope audit were
performed and the scope of ISO27001 certification was
extended to General Affairs Department. Continuous efforts
will be made to extend the certification to other departments
and certainly to prevent information leaks.

Company Overview■Establishment: October 1, 1985
■Headquarters: In the Plant of Tokyo Seimitsu at 2968-2
Ishikawa-machi, Hachioji-shi, Tokyo■President: Koichi Kawamura■Sales: 1,825 million (for the period ending in March 2018)■Employees: 119 (as of March 31, 2018)■URL: http://www.toseisys.co.jp/

Tosei Box Corp.

TA Series

Company Overview■Establishment: September 1, 2001
■Headquarters: 2968-2 Ishikawa-machi, Hachioji-shi, Tokyo■President: Hideaki Takano■Sales: 808 million (for the period ending in March 2018)■Employees: 37 (as of March 31, 2018)■URL: http://www.toseibox.com■Hubs: Four locations in JapanTR Series

Major business lines
With "Safety, Comfort and Relief" as a motto, we would like tocontribute to society, providing a more affluent housing
environment through delivery boxes that can be used with asense of security. Delivery lockers allow customers to receive
packages during absence. The opportunity to use the delivery
lockers has increased, as internet shopping becoming more
popular leading the distribution of delivery to increase and also
due to changes in customer's lifestyle.
The company provides various types of lockers with different
colors with improved security, usability and of different materials
such as steel to match the interior of the building. In addition to
non-contact IC card and fingerprint authentication systems, anautomatic open type system has been introduced. The company
is committed to supplying better products and services andpromoting CSR activities in order to contribute to society. As a
specific CSR activity, we had all the employees take courses
through e-learning about the code of conduct and information
security and built awareness. We plan to provide harassment
education. We also reviewed management of maintenancecontract documents and enhanced the management system.

*Tosei Systems and Tosei Box conduct together CSR activities of Tokyo Seimitsu.
ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

33

ISO 26000 Correspondence Table

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

ISO 26000
Core Themes

Governance

IssuesOur Efforts● Massage from the President● How We See CSR● ACCRETECH Group Code of Conduct● Corporate Governance• Corporate Governance• Compliance and Risk Management

1. Governance

2. Due diligence
3. Human rights risk situations● ACCRETECH Group Code of Conduct● Relationship with Suppliers● Relationships with Employees• Employment and Use of Human
Resources

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
10. Employment and employment relationships● ACCRETECH Group Code of Conduct● Relationships with Employees• Employment and Use of Human
Resources• Industrial Health and Safety

11. Conditions of work and social protection

Labor
practices

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

Environment
17. Mitigation of and adaptation to climate change
18. Environmental preservation, biodiversity, and recovery of natural habitats
19. Prevention of corruption

Fairbusinesspractices

20. Responsible political involvement
21. Fair competition
22. Promotion of social responsibility in the value chain
23. Respect for property rights
24. Fair marketing, information, and contractual practices
25. Protection of health and safety of consumers

Consumerissues

26. Sustainable consumption
27. Consumer services, support, resolution of complaints and grievances
28. Consumer data protection and privacy
29. Access to essential services
30. Education and raising awareness
31. Participation in the community
33. Job creation and skill development
34. Technology development and access
35. Creation of wealth and income
36. Health
37. Social investment

34● ACCRETECH Group Code of Conduct● Corporate Governance• Compliance• Risk Management System● Relationship with Suppliers• Supply Chain Enhancement● Relationships with Shareholders andInvestors● ACCRETECH Group Code of Conduct● Corporate Governance● Relationship with Customers• Commitment to Customer Satisfaction● Relationship with Suppliers• Supply Chain Enhancement● Relationship with the Global
Environment• Eco-products● ACCRETECH Group Code of Conduct● Relationships with Employees• Employment and Use of Human
Resources● Relationship with Society• Environmental Volunteer Activities in
Local Community• Relationship with Industry Groups

32. Education and culture

Community
development● ACCRETECH Group Code of Conduct● Relationship with the Global
Environment• Basic Stance on the Environment• Eco-factory• Eco-products● Relationship with Society• Environmental Volunteer Activities in
Local Community

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

MEMO

ACCRETECH CSR REPORT 2018TOKYO SEIMITSU

35

Tokyo Seimitsu Co., Ltd.
S o cie t y
ry

rb

E

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

on

S h a r e w it hve

CSR Promotion Committee

one

for L ow-

ca

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

Issued: October 2018

A-016-E-1810