Invigorating
people andworkplaces

Medium-term goal

Maximize dreams and drive
Priority themes

Human rights
and diversity

Work-life
balance

HealthRelevant SDGs

Good health andwell-being

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TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Decent work andeconomic growthHuman rights and diversity
Human rights
TEL recognizes the importance of respecting human rights in all aspects of business activities. Our
principles for respect for human rights are established in our Management Policies and Code of Ethics
prohibiting discrimination based on gender, nationality, age, race, creed, or religion; forced labor, childlabor, and harassment. The Group aspires to create a pleasant workplace environment where everyone
can work free of discrimination by implementing employee training and establishing hotlines for prompt
awareness and resolution of activities related to human rights issues.

Workstyles of a diverse workforce
Active involvement of women
Action plan
With business operations across the globe and with overseas sales accounting for more than 80% of
total sales, TEL continues to develop work environments for a diverse workforce.
Based on the Act on Promotion of Women’s Participation and Advancement in the Workplace,
we have developed and implemented an action plan to promote the active involvement of female
employees by 2019. The action plan lists two goals for improving work conditions for both womenand men: achieve a 70% take-up rate of annual paid leave, and prevent harassment in the workplace.
As a result of efforts encouraging employees to take leave, the take-up rate of annual paid leavein fiscal 2017 was 64.1%.1 These efforts included understanding how much leave was being taken,
raising awareness for the planned use of leave, and regularly monitoring how much leave was used.
Meanwhile, the development of regulations was central to the efforts for preventing harassment.
Some subsidiaries also took steps to establish and raise the profile of help desks and advisors, as well
as reviewing and conducting effective training and education.

1 Group companies in Japan

Technology conference for women engineers
In February 2017, a technology conference for female engineers was held as an event to support
female employees. On the day, five female engineers from different areas of the company gave
presentations on their own areas of specialization and their own work styles. This event was anopportunity for the all-female audience to learn about the various roles in our company, as wellas address their worries and provide advice for their future careers. About 90 female employees
participated in the conference, with a teleconferencing system used to link our Akasaka headquarters
with our factories and offices throughout Japan.

Active involvement of people with disabilities
TEL seeks to be a corporation where a diverse range of employees can work to their full potential. We
have established an inclusive working environment for people with disabilities. People with disabilities
account for 2.13% of employees at TEL headquarters and 1.98%2 of employees in Japan operations
overall.

Employee voices

2 As of March 31, 2017

Active involvement of employees with disabilities

I joined TEL in 2015, and currently I am in charge of approval work for the export of parts. I commute to work by car, whichis less stressful for me, and TEL has given thoughtful attention to my work setup. For instance, the document cabinets areat an easy height for me to use, and my desk has been placed close to the exit so that it is easier for me to get around in mywheelchair. What pleases me most about TEL is that I am treated the same as a person without disabilities. For example, during
the recruitment screening process, I felt that I was being assessed on my skills and experience. Going forward, I will continue towork hard in order to meet the company’s expectations.

Akihiko Suzuki
Export & Logistics
Control Dept.

TOKYO ELECTRON SUSTAINABILITY REPORT 201734

Invigorating people and workplaces

Work-life balance
Workstyle reform
TEL is working to introduce a new personnel system aimed at supporting its vision to become “a real
global company generating high-added-value and profits,” as part of the medium-term management
plan. The system is designed to enable each employee to challenge themselves to meet their goals
without fear of failure, and to provide fair evaluations proportionate to individual levels of contribution.
Based on the idea that raising the engagement1 of employees is essential for sustained growth of ourcompany, the new system also aims to create a rewarding workplace environment where employees
can challenge themselves to achieve higher goals with widening global career opportunities. The new
personnel system specifies new ways of working, such as clarifying roles and expectations, enabling
employees to work more autonomously with challenging goals linked to the company’s vision, andrewarding eagerness and voluntary effort important for increased motivation. Rating, evaluation, andremuneration will be built as common global systems, enabling us to share objectives and goals among
employees worldwide. This new system will become part of standard operations in fiscal 2018.

1 Engagement: A constant feelingof pride, passion and a sense of
responsibility in one’s own workand a desire to work hard to achieve
results

Features of the new personnel system

Rating system
The system clarifies duties (the roles and responsibilities required of the employee) supporting a
global way of working
Evaluation system
The system is designed to establish performance goals appropriate to employee level andstretch goals designed to develop the employee, and it assesses the employee based onachievement of (or contribution to) those goals
Remuneration system
In addition to a level of remuneration that is competitive in the market, the system provides theemployee with career opportunities as well as a productivity-linked bonus proportionate to theirdegree of achievement (contribution)

Refreshment leave
TEL has a refreshment leave system that offers a special paid leave every five years to regular
employees with 10 or more years of continuous service. Refreshment leave ranges from two weeks to
one month.2 The purpose is to renew employees’ eagerness to work, encouraging them to refresh theirbody and mind. In fiscal 2017, 586 employees in Japan took refreshment leave.

Systems supporting flexible workstyles
TEL is committed to reducing overtime, encouraging employees to take time off, and improving thevarious leave systems. In this way, we allow employees to adopt a flexible approach to work according
to their individual lifestyle and stage in life. Amid a declining birthrate and aging population, we arefocused on enhancing our childcare and nursing care leave systems, enabling all employees to develop
their careers.
Our childcare support system in Japan allows employees to extend their leave until their child turns
three. Also, we give parental guardians an option of taking reduced work hours until their children
finish elementary school, which goes significantly beyond the legal requirement. As a result of thesemeasures, 44 employees (including two male employees) took childcare leave in Japan operations infiscal 2017, and 44 (including two male employees) returned to work after taking childcare leave inprevious years for a 93.6% return rate. About 35% of female TEL employees in Japan are successfullybalancing work and family as working mothers.

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TOKYO ELECTRON SUSTAINABILITY REPORT 2017

2 Employees with 10, 15, 20, and 25
years of continuous service cantake a leave of two weeks, three
weeks, two weeks, and one month,respectively

Leave and other support systems for childcare and nursing care
SystemOverview

Eligible employees

Notes

Relief forcommutingdifficulties

Allows work start times and finishing times to be moved forward or back by amaximum of one hour each day

Childcare leave(1) Allows leave to be taken up until a requested date but no later than the end of April
after the child turns 18 months of age
Employees with a child who will be less(2) If the child cannot gain admission into a nursery school, leave may be extended
than 18 months of age at the end of thefrom the end of April after the child turns 18 months of age until the child turns three following April
years of age (i.e. the day before their third birthday)

More than the legal
requirement (up to a
maximum of three yearsof age)Childcare time

Allows an employee to request time to care for their infant for two 30-minute periods Female employees with an infant under
per day, in addition to prescribed rest periods (treated as paid leave)
one year of age

More than the legal
requirement (paidcomponent)

Flextime forchildcare andnursing care

Allows work start times and finishing times to be moved forward or back by amaximum of 90 minutes per day

Employees with a child who has notgraduated elementary school, or who
are caring for a family member requiring
nursing care

More than the legal
requirement (up until
the child finishes
elementary school)

Leave to care
for a sick/injured child

Allows leave to be taken for up to a maximum of five days for employees with one
child, and 10 days for employees with two or more children, per business year (up to
five days treated as paid leave)

Employees with a child not old enoughto commence elementary schoolMore than the legal
requirement (paidcomponent)Childcare
support leave

Special leave to care for a child for up to a maximum of five days per business year
(unpaid)

Employees with a child not old enoughto commence junior high school

Unique system

Short nursing
care leave

Allows leave to be taken for up to a maximum of five days for employees with one
family member requiring nursing care, and 10 days for employees with two or morefamily members requiring nursing care, per business year (up to five days treated as
paid leave)

Employees with a family member
requiring nursing care

More than the legal
requirement (paidcomponent)

Extendednursing careleave

Allows an extended period of leave to be taken for up to three times per person
requiring care, up to a maximum of one year in aggregate

Employees with a family member
requiring nursing care

More than the legal
requirement (up to one
year of leave)

Employee voices

Pregnant female employees who areunder instruction from their doctor

As per the legal
requirement

Childcare leave for men

I took 17 months of childcare leave from September 2015 to February 2017. This was due to several reasons: my strong, longstanding desire to be involved with my children, a desire to help my wife return to work as a freelance piano teacher, and the
problem of waiting for admission to a nursery school.
Seeing as it is still uncommon for male employees to take long-term childcare leave, my supervisor was surprised at first, but
happily accepted my temporary departure. People around me were also concerned about me taking leave for such a long time,
but in the end, I was allowed to return to the same marketing work as before. I am extremely grateful for this. I would be glad if
the option of taking childcare leave continues to be afforded to male employees. I plan to take the joyful experience of spending

Masahiro Atsumi

many days close to my newborn, and apply it to my work and life in the future.

Marketing Department 1, TFF

Human resource development
TEL UNIVERSITY
To enhance its HR development and organizational capabilities, TEL has established a corporate
educational institution called TEL UNIVERSITY. The curriculum includes courses that provide worldclass knowledge and skills, training programs for next-generation leaders, and courses for developing
managerial and organizational capabilities.

TEL UNIVERSITY
Programs (Fiscal 2017)
Number ofparticipants
New hire training (full year)
71
Junior employee programs

Main activities in fiscal 2017

310

With career level-specific programs, TEL has started “step-up” activities for junior employees. These
employees set their own work theme, establish challenging targets, plan ideas for related activities, andaccomplish work with their supervisors and colleagues. These “step-up” activities provide opportunities
for learning and awareness with the aim of nurturing independency at work within two years of joining
the company.
In these purpose-specific programs, TEL experts lead a wide variety of workshops to share specificknowledge within the company. Other efforts this year included using our internal skills and talents tomake improvements to new hire training and to promote completion of e-learning and correspondence
courses designed to develop skills needed for the work environment (including language skills).
Life design seminars have also been held every year, targeting employees eligible for retirement.
The programs provide knowledge and information necessary to prepare for leaving work, such as preretirement preparation and post-retirement financial planning. They include seminars with a number of
Q&A-type sessions to help dispel doubts and anxiety about retirement.

Manager programs
78
Business leader programs
60
Workshop for engineers
333
Technical seminars
735
Business skills programs
807
Practical English courses
306Life design seminars
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TOKYO ELECTRON SUSTAINABILITY REPORT 201736

Invigorating people and workplaces

Visionary Talks
Since 2015, TEL has hosted internal events called “Visionary Talks.” In these seminars, we invite experts
and specialists from various fields to speak freely on their vision for the future.
The event is a great opportunity for employees to expand their creativity and imagination forenvisioning the future, by allowing them to hear the experiences and feel the enthusiasm andconviction of leading figures in a variety of fields, including science, technology, art, and sport. At
Visionary Talk 2016 in November, five guest speakers were invited to our headquarters in Akasaka,
Tokyo. The talk was attended by 200 employees in person and streamed to our offices in Japan, Korea,
China, Taiwan, and Singapore, providing more than 900 employees with flashes of inspiration for the
future. Visionary Talk also serves as an opportunity for collaboration with external parties in researchand development in areas such as artificial intelligence.

HealthWellness declaration
In February 2012, TEL announced its wellness declaration based on the view that the health andsafety of employees is paramount. In accordance with this declaration, we have conducted a numberof ongoing wellness initiatives, including the establishment of health help desks, the provision ofcounseling services, and the introduction of stress checks. We also offer walking events, healthy foodchoice initiatives for company cafeterias, and body composition measurement sessions.
Since 2016, we have promoted the improvement of employees’ exercise habits. At nine of ourfactories and offices in Japan, we are developing an Eat-Rest-Walk-Talk program, which proposes that
employees spend every day in a healthy way, incorporating some kind of regular exercise into their daily
activities.

Eat

Three balanced
moderately-sized
meals every day

Alcohol inmoderation
Two days every week
without alcohol

Sleep

Walk

Understand

Rest

Climb

Talk

Recharge throughquality sleep time
Vary the pace of yourday to improve
efficiency

No smoking

Target 10,000 steps
every day
Use the stairs at work

Enjoy

Have a health checkevery year

Talk with others rather
than dwelling on a
problem alone

A change of moodthrough a hobby

Quit now for your future

Stress checks
Since being mandated by law in December 2015, TEL has offered stress checks to employees at eachfactory and office in Japan. Employees complete a questionnaire recommended by the Ministry of
Health, Labour and Welfare, and if judged to be under high stress, they are given face-to-face support
by a public health nurse or occupational health physician. The stress check conducted in July 2016 was
taken by about 90% of employees.

Introduction of the Pep Up healthcare platform
As part of the national requirement for new health management systems, TEL actively promotes
activities for improving employee health based on collaboration between employers and healthinsurance societies. In 2016, we introduced the Pep Up personal healthcare platform. By using thissystem, individual employees can easily check health information such as the results of their medical
checkups and itemized details of their medical expenses. The various support offerings also include
enabling employees to record their daily health management data (weight, blood pressure, body fat
ratio, length of sleep, etc.) as well as recommended activities to suit their state of health (walking andrunning events, fitness centers, etc.). In collaboration with the health insurance society, we will continue
to push for a broader user base of Pep Up, raising the health awareness of employees.
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TOKYO ELECTRON SUSTAINABILITY REPORT 2017

TEL’s social contribution activities
TEL conducts social contribution activities around the world. Through various initiatives, we strive to build solid, trustworthy
relationships with community members to help develop local communities and resolve social issues at the global level. In this, we willdevelop a rich, dream-inspiring society and enhance our corporate value.

Initiatives around the world
With Innovation and Technology, Education, Environment, and Community Involvement as the four focuses of our social contribution,
we conduct activities that best meet the requirements of each locality.
Innovation and Technology: Semiconductor scholarship(Korea)Through a program run by the Korea Semiconductor Industry
Association (KSIA), an organization that focuses on developing humanresources in the semiconductor sector, TEL granted scholarships tooutstanding students recommended by universities. One student isselected every year andawarded the scholarshipon Semiconductor Day.
This year marks the ninth
occasion since 2008.

Education: SEMI High Tech U (U.S.)
A High-Tech Career Exploration Program was held at the Austin office inthe United States, where students could have fun experiencing cuttingedge technologies with practical applications. About 30 local highschool students participated in the program, which featured educational
materials provided by SEMI,a global industry association
serving the electronics
industries, and interactedwith employees from ourAustin office over the threeday period.

Community Involvement: REWE Team Challenge(Germany)

Environment: Tree-planting activities (Japan)
Tokyo Electron Technology Solutions’ Tohoku Office has been planting
trees in nearby sites. In 2016, about 700 oak seedlings and five memorial
cherry trees were planted. Two hundred and seventy employees
and family members
participated in the event,
providing an opportunity forworkers and their families
to deepen their friendships
with each other.

Twenty employees teamed up with clients to participate in a
5 km charity marathon run through the city center of Dresden,
strengthening the ties between them.

Kumamoto Earthquake relief efforts
TEL actively provided a wide range of support to those affected by the April 2016 Kumamoto Earthquake to help bring stability to theirlives and restore their communities as soon as possible.
Relief supplies and livelihood support
Amid the tremendous damage to the transportation infrastructure, TEL made full use of its
trucks and warehouses to swiftly deliver daily necessities, water, food and other goods fromacross the country. At the affected areas, we offered our recreational facilities as support basesand evacuation centers and provided assistance activities to employees and local communities.
Donations
A total of 100 million yen in donations was presented to Kumamoto Prefecture.
Matching donations
To support efforts aimed at matching funds for reconstruction, TEL matched donations
collected from employees around the world. The donations were distributed to affected
employees, and emergency supplies were donated to surrounding municipalities.
Charity concert
A charity concert was held with the hope of using music to raise the spirits of thoseaffected by the disaster. Employees and volunteer staff worked to transform two
gymnasiums of local junior high schools into concert halls. For two days, the concert was
enjoyed by 1,600 students, local residents, and employees and their families.
TOKYO ELECTRON SUSTAINABILITY REPORT 201738