Tokyo Electron—Part of Your Everyday Life
Tokyo Electron Limited (TEL) technologies help resolve environmental issues by improving the performance andreducing the energy usage of products made by our customers. Semiconductor and flat panel display (FPD)
components manufactured by our customers can be found inside a wide range of electronic products that you comeinto contact with every day.

Semiconductors

FPDs
A display used in personal computersand LCD TVs to reproduce beautiful,crisp images. Tokyo Electron offers FPD
production equipment, as well as reliable
technical support, to LCD panel makers.
The Company’s leading-edge products
and technologies meet our customers’
ever-increasing demands for high-quality
and low-cost solutions.

Impressio™
FPD Plasma Etch/Ash System

Removes unwanted portions of film to achieverequired patterns on substrates.

CLEAN TRACK™
LITHIUS Pro™ V-i
Coater/developer

Coats and develops wafers withphotoresist.

CONTENTSCONTENTS  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Tokyo Electron Corporate Philosophy/Editorial Policy  .  .  .  .  .  .  .  .  .
Message from the President . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

p. 2
p. 3
p. 4

2

Plasma Etch System

Removes contaminants fromthe wafer surface by chemicalcleaning.

Removes unnecessary materials
from the wafer surface for patternformation.

EHS Management  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Product-related Initiatives for the Environment  .  .  .  .  .  .  .  .  .  .  .  .  .
Plant and Office Initiatives for the Environment  .  .  .  .  .  .  .  .  .  .  .  .  .
Health and Safety Initiatives  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

p. 14
p. 16
p. 20
p. 24

Social Report
p. 6
p. 8
p. 10

Relationship with Customers and Suppliers  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Relationship with Shareholders and Investors  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Relationship with Employees  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Relationship with Local Communities (Corporate Citizenship)  .  .  .

p. 26
p. 27
p. 28
p. 30

p. 12
p. 13

Comments from a Third-Party Expert/Response to the Third-Party Comment  .  .
Corporate Profile/TEL Values  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

p. 34
p. 35

Management Report
Corporate Governance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Compliance  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

Tactras™ Vigus™

EHS Report

Highlight
Developing a Global R&D Network to Stay Close to
Our Customers and Expanding into New Business Areas  .  .  .  .  .  .
Kunshan Plant in Jiangsu, China, Starts Operations .  .  .  .  .  .  .  .  .  .
New Environment Vision of Tokyo Electron .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

CELLESTA™-i
Single Wafer Cleaning System

Corporate
Philosophy

Provide high-value products and services around the world that help people to leadhealthy and enriched lives.
Demonstrate consistent leadership as a world-class company by creating hope for the
future and addressing environmental problems.
Share a sense of mission with all Tokyo Electron employees, and become an energetic,
dynamic and creative company.

Semiconductors are a key component of personal computers, mobile
phones and other electronic products. Tokyo Electron offers a wide range ofvital semiconductor production equipment and superior technical support tosemiconductor manufacturers around the world. Our highly productive
products and technologies respond to diverse customer needs and play anessential role in the production of increasingly complex semiconductors.

Photovoltaic Panels
Photovoltaic power is often considered to be themost promising renewable energy source. Based ona determination to address environmental problems
through our technological prowess, Tokyo Electron
is strengthening its photovoltaic panel production
equipment segment so that it can serve as a newpillar of our business.

TELINDY PLUS™

Triase+™

Precio™

Thermal Processing System

Single Wafer CVD System

Wafer Prober

Forms silicon dioxide and nitride
films on the wafer surface.

Deposits various types of filmon the wafer surface using achemical vapor deposition (CVD)
technique.

Provides testing of finished devices to determine their functionality and performance.

Photovoltaic Panel Production
Equipment
The Tokyo Electron Group’s major focus is on thin-film
silicon photovoltaic panels, a type of photovoltaic
panels on which silicon thin-films are deposited on
glass substrates.

Editorial Policy

Scope of Report

This report is intended to provide information on social responsibility activities conductedby the Tokyo Electron Group, especially those involving the global environment and society.
While previous issues of this report have focused mainly on activities in Japan, this year’s
edition also covers the Group’s overseas activities, which are promoted in earnest by theGroup alongside the internationalization of its business.
The Highlights included in this report are presented with the aim of helping readers
to deepen their understanding of how the Group fulfills its social responsibility throughits businesses. Furthermore, because the 2015 targets set under Tokyo Electron’senvironmental commitment are expected to be achieved ahead of schedule, we haveestablished new goals under the new Environment Vision in the Highlights.
It is our hope that this report will serve to strengthen communication between the Tokyo
Electron Group and all its stakeholders, including the public, and we hope to make use ofsuch communication in our future activities. We welcome your direct feedback and opinionsof this report using the questionnaire form provided.
The results of the Tokyo Electron Group’s environmental accounting for fiscal 2012 areavailable (in Japanese) on our website:

Tokyo Electron Group(Tokyo Electron and its subsidiary/affiliated companies in Japan and overseas)

Period Covered
Fiscal 2012 (April 1, 2011 – March 31, 2012). However, some information for fiscal 2013
has also been included.

Publication Timing
Publication of this report:
September 2012 (Japanese), November 2012 (English)
Publication of the next report:
September 2013 (planned) (Japanese), November 2013 (English)
Publication of the previous report:
September 2011(Japanese), November 2011 (English)

Guidelines Referred to in Preparing this Report· Environmental Reporting Guidelines 2012 issued by Japan’s Ministry of the Environment· Sustainability Reporting Guidelines Version 3.1 published by the Global Reporting
Initiative (GRI)

http://www.tel.com/environment/ehsreport/index.htm
3Message from the President
Creating Hope for the Future—Utilizing
Our Advanced Technologies toContribute to Social Development

Celebrating Our 50th Anniversary—Semiconductor Production Equipment

The year 2012 marks the 50th anniversary of the Tokyo Electron

The Tokyo Electron Group built a new plant in Miyagi PrefectureGroup. I would like to take this opportunity to thank all ourin October 2011 to expand our core etching system business. We

stakeholders for their support in our pursuit of excellence.

also began operating two new technology centers—one in Taiwan

The Tokyo Electron Group manufactures production equipmentin 2010 and the other in South Korea in April 2012—in addition toand delivers tangible value to industrial customers through technicalthose we already have in Japan and the United States. These twosolutions and services. We are committed to helping enrich people’s

additional technology centers, with their close proximity to our major

lives, helping achieve a society that offers boundless opportunities,

customers in the fast-growing Asian market, enable us to work withand using our proprietary technologies to address environmental

those customers from an early stage of their R&D projects and tochallenges. All our officers and employees share this commitment

timely develop a new generation of production equipment tailored

and are working together to make Tokyo Electron a visionary andto meet their needs. Furthermore, in May 2012, we acquired U.S.-

innovative company full of energy.

based NEXX Systems, Inc. to leverage its technological expertise toOver the past year, the Japanese economy has faced enormous
challenges from external forces, such as the need to rebuild
communities and industries damaged by the Great East Japan

expand our position and business in the growing field of advanced
semiconductor packaging.
In our core segment of semiconductor production equipment,

Earthquake, the yen’s appreciation to a record level, and the financial

the key to successful business growth is to be quick to understandcrisis in Europe. In this challenging environment, the Tokyo Electron

customers’ needs and incorporate them into product development

Group—never losing sight of its vision of making environmental

using our proprietary technologies. As the limits to the miniaturizationand social contributions—built up its current business lines whileof chips are getting closer, expectations are increasing in theaggressively investing in laying the groundwork for long-term growth.

market for innovation in the structures of and materials used for

Our major investment projects during fiscal 2012 included building

semiconductors. To meet these expectations, we are expanding ouradditional plants and technology centers in Japan and abroad as wellofferings of production equipment for three-dimensional packaging,as acquiring foreign-based technology companies. We are ready to

and are working with Tohoku University to develop production

continue offering our customers tangible value.

equipment for STT-MRAM, a next-generation memory device ofgroundbreaking design.

4

—Flat-Panel Display Production Equipment
To meet fast-growing demand for flat-panel displays (FPDs) in China,

Becoming a Company in Which All
Employees Are Full of Energy and Passion

we began manufacturing production equipment for FPDs in our new

Throughout its history of 50 years, the Tokyo Electron Group has

plant in Kunshan, China, in March 2012.

held to the belief that its employees are the company’s most valuable

FPD manufacturers are having an increasingly hard timeassets. When employees are full of energy and passion, they are

differentiating their liquid crystal display (LCD) TV products from theready to take on challenging tasks and accomplish them. To makecompetition, and are looking to organic light-emitting diode (OLED)

our employees feel more proud of the company, we have been

TVs as the future of FPDs—for they outperform LCD TVs in terms

aggressively investing in building the Tokyo Electron brand sinceof response time, color reproducibility, lightness, thinness, and low

2010. Moreover, as more people have a better idea of who we are

power consumption. We will step up our efforts to develop much-and what we do, we are attracting an increasing number of talented

anticipated equipment for mass-producing large OLED displays.

people from diverse backgrounds. We will continue to upgrade ourworkplace environment so that employees can comfortably play theirroles in keeping the company on a track of growth.

—Photovoltaic Panel Production Equipment
The Tokyo Electron Group leverages its technological prowess in
production equipment to develop equipment for producing thin-film

Community Investment

silicon photovoltaic (PV) panels. As thin-film silicon PV panels are

The Tokyo Electron Group strives to be a good corporate citizen byless material-intensive than other PV panel designs, innovation inmaintaining close ties with the communities in which we operate. We

production equipment will enable better-performing PV panels to be

are engaged in a variety of community outreach programs so as to build

made at lower costs. Furthermore, thin-film silicon PV panels are

and retain relationships of trust with local residents and to coevolve withseen as one of the ideal key components to build large solar farms,

society. As the scope of our business is becoming increasingly global,

and represent a huge potential for increased demand. To accelerate

our community investment efforts to establish coevolving relationships

our efforts to expand our photovoltaic panel production equipmentwith local communities are also going global—from Japan to other Asianbusiness, we acquired Swiss-based Oerlikon Solar in March 2012.

countries to Europe and the United States.

In addition, a new technology center we built in Tsukuba, Ibaraki
Prefecture in March 2012 has begun to work with universities and

The management vision that the Tokyo Electron Group has

government-affiliated research institutions concentrated in the area

embraced over the past 50 years and will continue to embrace isto bring the performance of PV panels to a new level.

focused on: (1) staying on the leading edge of R&D prowess in
the global arena; (2) earning and retaining the complete trust ofcustomers; and (3) motivating employees to achieve their potential

Becoming a Global Company That
Leverages its Technological Prowess toAddress Environmental Challenges
The Tokyo Electron Group announced its environmental commitment

and meet organizational objectives.
As we celebrate our 50th anniversary, we have a renewed
commitment to listening to what our stakeholders have to say to us andmaking positive contributions to the growth of society over the next fifty
years. We appreciate your support in our endeavor.

under the slogan “Technology for Eco Life” in May 2008. Our
goals are to reduce the environmental impact associated with ourmanufacturing and distribution operations by half from the fiscal
2008 level by the end of March 31, 2015, and to help our industrial
customers half their total environmental impact in their factories

Hiroshi Takenaka

during the same time frame. Now that we are well on track to achieve

President & CEO

these goals, we will establish a set of new goals for beyond 2015.

Tokyo Electron Limited

5

Highlight
Developing a Global R&D Network to Stay Close to Our
Customers and Expanding into New Business Areas
Tokyo Electron is expanding its R&D
network worldwide in a variety of fields

Tokyo Electron’s R&D centers
Partner research organizations

U.S.
imec (Belgium)

Albany NanoTech (U.S.)

CEA-Leti (France)

SEMATECH (U.S.)TEL Technology Center,
America, LLC

Korea

TaiwanJapan

TEL Technology Center, Korea

TEL Technology Center, Taiwan

Tokyo Electron Technology Center Tsukuba
Process Technology CenterTokyo Electron Technology Development Institute, Inc.

Ensuring timely delivery of products from a location close to customers
In order to ensure timely delivery of necessary products tocustomers, it is important to establish R&D centers at locations
adjacent to them and to maintain close cooperation to expedite thecommercialization of technology.
In addition to a technology center established in Hsinchu City,
Taiwan in 2010, we also opened a process technology center in South
Korea and a technology center in Tsukuba City, Ibaraki Prefecture in2012 to enhance our ability to meet customers’ needs promptly.
The development of the most advanced technology requires
the creation of novel concepts through the synthesis of technicalknowledge from various fields, making it necessary to leverage

Tokyo Electron Technology Center Tsukuba• Location : Tsukuba City, Ibaraki Prefecture, Japan• Floor area : 13,234 m2• Construction began/completed:
August 2011/March 2012
• Activities :	Research and development ofphotovoltaic panel production
equipment technology andsemiconductor production equipment
technology• Number of employees:
Approx. 110 (plan for the first fiscal year)
6

external sources of expertise. Tokyo Electron is actively promoting
collaboration with universities and research consortiums such as
SEMATECH and imec for basic research. The establishment of theTokyo Electron Technology Center Tsukuba has also opened up theway for joint projects with research institutes clustered in Tsukuba
City, allowing us to work together in R&D on new semiconductormaterials and photovoltaic power generation as well as on thecreation of new technological seeds.
These R&D efforts are expected to bear fruit over the next
five to 10 years and yield products that will drive the company’s
continued growth.

The acquisition of NEXX Systems—Paving the way to providing exceptional opportunities
in the emerging 3D interconnect technology arena for energy-saving electronic devices
reduce inductance, allowing higher-speed signals and conducting heat
better. The wafer level packaging processing equipment market, which
includes flip chip bumping and TSV, is expected to grow at an annual
rate of more than 30 percent in the coming five years.
Tokyo Electron’s acquisition of NEXX will expand its position inadvanced packaging to include electrochemical deposition (ECD) andphysical vapor deposition (PVD) systems that have won awards fortheir outstanding performance, low cost of ownership, development
flexibility, and their extendibility to future applications.
Integrating NEXX’s applications with Tokyo Electron’s broad productline-up and leading global support will enable the company to growits business portfolio while continuing to offer the best solutions tocustomers. NEXX Systems, a wholly-owned subsidiary of Tokyo Electron
US Holdings, Inc., changed its name to TEL NEXX, Inc. on May 1, 2012.

TEL NEXX, Inc.

TEL NEXX’s metal deposition technology enables the formation of not only electrode bumps
but also TSV electrodes for 3D packaging on the wafer, with excellent cost performance.

• Location

MANAGEMENT REPORTTEL NEXX’s advanced wafer-level packaging technology

HIGHLIGHT

Amid the explosive growth of multifunctional mobile devices, such as
smartphones and tablets, it has become critical to produce thinnerand smaller devices that consume less power. Advanced packaging
technologies address these needs. From flip chip bumping to throughsilicon vias (TSV), wafer level packaging has emerged as the fastest
growing semiconductor packaging arena.
Flip chip is a method for interconnecting semiconductor devices,such as IC chips, to external circuitry with solder bumps that have been
deposited onto the chip parts. The solder bumps are deposited on the
top side of the wafer during the final wafer processing step. This is aninnovative departure from conventional wire bonding, in which wires areused to interconnect the chip pads to external circuitry. The resulting
completed flip chip assembly is much smaller and shorter in height
than a traditional wire bonding system. The short interconnects greatly: United States• Number of employees : 153 (as of June 2012)

Wire-bonding

Flip chip

Wire

Bump

Chip

Thinner

Chip

TSV*1 3D integration

A chip is bonded using
gold or copper wire.

The bumps formed on the chip are
directly connected to electrodes on thewiring board.
• Thinner and smaller footprint• Higher pattern density, higher
performance• Lower resistance, lower power
consumption

EHS REPORTHeight of package

Development of packaging technology

Multiple semiconductors are verticallyinterconnected.
• Shorter wiring• Far greater number of I/Oterminals*1 TSV : Through Silicon Via

SOCIAL REPORT

Joint development project with Tohoku University
Tokyo Electron will participate in STT-MRAM (magnetic memory) researchand development led by Prof. Tetsuo Endoh of Tohoku University’s
Graduate School of Engineering as part of a program to be implemented at
the International Academic-Industrial Collaboration Center for Integrated
Electronics Research and Development (provisional name), which Tohoku
University plans to open in the spring of 2013. The Company will engage inthe development of manufacturing equipment technology.
Tokyo Electron has been working with Prof. Endoh on the developmentof STT-MRAM production equipment technology and integration
technology since December 2011. Under the upcoming program, we willfurther develop this partnership, provide the Center with products, and aim
to quickly establish manufacturing equipment technology and integration
technology for the production of STT-MRAM, which is attracting attention
as a next-generation memory device.

Advantages of STT-MRAM*2 (spintronics memory)• Uses magnetic materials for the semiconductor.
• Realizes lower power consumption for servers, PCs, mobile phones, andother devices.
• Maintains data without power supply (non-volatile).

TOHOKU UNIVERSITY

Device design technology

Magnetic
material(MTJ* 3)
Process technology

Word line
Bit line

Production equipment
technology

Courtesy of Prof. Tetsuo Endoh, Tohoku University*2 STT-MRAM: Spin Transfer Torque-Magnetoresistive Random Access
Memory*3 MTJ: Magnetic Tunnel Junction

7

Highlight
Kunshan Plant in Jiangsu, China,
Starts Operations

Tokyo Electron will contribute to the development of the Chinese panel
display industry by engaging in the production of flat panel display (FPD)
production equipment and maintenance of components in China
Purpose of the establishment of a new plant in China
The Tokyo Electron Group has established a new production
site for its flat panel display (FPD) business in Jiangsu, China.
Previously, we manufactured all FPD production equipment
and service parts in Japan. We decided to break with tradition,
however, and build a new plant in China in order to meet the
rapidly increasing Chinese demand for production equipment ina more timely manner while improving our cost structure. The
plant consists of two buildings—one for production and one foradministration—with a combined floor area of 28,246 m 2 . In the
beginning, the plant will only undertake periodic maintenance but

will gradually expand operations to include alteration and partial
manufacturing of production equipment. While maintaining the
R&D function for differentiating technologies in Japan, we will
make the most of the new plant in China to flexibly respond to theneeds of the quickly expanding Chinese market and enhance ourcompetitive advantage.
By pushing for the plant’s ongoing growth and success,we will contribute to the prosperity of Kunshan City and thedevelopment of the Chinese panel display industry.

TEL Kunshan Plant in Jiangsu, China• Company name : Tokyo Electron (Kunshan) Limited• Location: No.8, Dongguang Road, Kunshan Economic &Technical Development Zone Jiangsu, China• Activities: Manufacture of flat panel display (FPD) production
equipment and maintenance of components• Construction began/completed:
January 2011/March 2012
• Floor area

: 28,246 m2
About 350 local government officers and Tokyo Electron Group personnel attended the opening ceremony, marking thecompletion of the new plant in a celebratory mood helped along by shishimai (lion dance) and other performances.

8

Meeting customers’ requirements in a timely manner

HIGHLIGHT

One of the services provided by the new plant is periodic
maintenance of FPD production equipment. The plant’s
proximity to customers allows us to conduct maintenancein such a way as to meet customer requirements in amore timely manner. The regular and proper maintenanceservice also ensures that our equipment will maintain its
quality and be able to be used by our customers for as
long as possible. The new plant also eliminates the needto transport consumables and spare parts to Japan forrepair, thereby helping reduce the environmental impact of
our logistics.

Manufacturing facilities at the new plant(large processing machines)

Environmental considerations incorporated from the planning stage

RO*1 water treatment room

Synthetic wastewater treatment facility

Pure water production equipment

Liquid chemicals storage tanks

EHS REPORT*1 RO: Reverse osmosis operation

MANAGEMENT REPORT

Various environmental considerations, such as the needfor energy and resource saving, were incorporated fromthe planning stage of the new plant. One such example isa system that collects waste heat from various facilities
and reuses it in air-conditioning to save energy. The plantis also equipped with a system that allows us to reuse
surplus water amounting to roughly 2,000 m 3 annuallythat is generated from pure water production as washwater. In addition, the skylights, installed as smoke
vents, let in plenty of outside light to help create a brightwork environment.
With regard to waste liquid containing chemical
substances, we not only ensure that its generation isminimized, but also that it is treated carefully and that thelevel of chemical substances contained in wastewater isstrictly controlled before discharge.

SOCIAL REPORTTokyo Electron’s first plant in China
Tokyo Electron (Kunshan) Limited was established as the Tokyo Electron Group’s first plant in China inorder to deliver products to the rapidly growing Chinese market. The first products shipped from the plant
are pieces of FPD production equipment and related service components. Our mission is to enhance thesatisfaction level and win the trust of our 10 FPD manufacturer customers, who between them operate
more than 20 factories.
With various environmental measures incorporated from the planning stage, the new plant is designed
to meet very stringent environmental regulations in China. China is working very hard on environmental
protection and strictly monitors companies’ compliance with national and local regulation standards. The
most demanding regulations are those concerning wastewater and atmospheric emissions. Understanding
this, we have installed anodizing* 2 and thermal spraying facilities at the new plant that offer the highest
standard of treatment quality.
With this new plant, which meets China’s stringent environmental regulations, we aim to win the trustand satisfaction of local customers through Tokyo Electron’s characteristic excellence in QCD (Quality, Costand Delivery).

Yoichi Kurono
President
Tokyo Electron (Kunshan) Limited*2 Anodizing: A process by which aluminum is made more corrosion- and wear-resistant9

Highlight
New Environment Vision of Tokyo Electron
The Tokyo Electron Group has been working on various environmental activities at customers’ factories, as well as within the Group itself, withthe aim of reducing environmental impacts by 50% over the baseline year of fiscal 2008 by the end of March 2015. However, because this goalis expected to be achieved ahead of schedule in fiscal 2012 (see p. 15), we have decided to establish a new Environment Vision and set newenvironmental goals to expand the scope of the activities by making our efforts more multifaceted.

10New environmental goals
Based on the Environment Vision specified on the opposite page, we have set new environmental goals in the four areas of “Products,”“Plants and offices,” “Procurement and logistics,” and “Environment management.” By keeping our “Technology for Eco Life; working
to solve environmental problems with technology” policy at the core of our activities, we will continue to drive our initiatives even morevigorously as a global company serving the planet by providing environmentally sustainable equipment technology.

HIGHLIGHT

Products

Plants and offices

Medium- to long-term goals

ActionReduction ofenvironmental
impact ofproducts

Reduce power consumption of major models ofeach business unit by 50% over the fiscal 2008 levelby the end of fiscal 2015.

Compatibility
withChinese RoHS

Fiscal 2013 goal

Medium- to long-term goals

Promotion ofenergyconservation

Reduce by 1% overthe fiscal 2012 level.

Reduce by 1% on a per-unit basis over the fiscal 2012 level.
Evaluate in a comprehensive manner based on a
per-unit standard appropriate to the situation of each
See p. 20
plant and office.

Continue to ensure products’ compatibility
with the Chinese labeling standard.

Reductionof water
consumption

Maintain the fiscal
2012 level.

Maintain the fiscal 2012 level.
Evaluate in a comprehensive manner based ona per-unit standard appropriate to the situationof each plant and office. See p. 21

Compliance withenvironmental
regulationsof each country

Continue to ensure products’ compliance with the EU’s Registration, Evaluation,
Authorisation and Restriction of Chemicals (REACH) framework as well as withlabeling requirements based on the Globally Harmonized System of Classificationand Labelling of Chemicals (GHS) and battery regulations of each country.

Recyclingof waste

Voluntarystandard
based on the
EU’s RoHS

Continue to ensure that major models of each business unit contain
98.5% or more parts that meet the EU’s Restriction of the Use of
Certain Hazardous Substances in Electrical and Electronic
Equipment (RoHS).

Maintain a recycling rate of 97% or more.
Continue to achieve zero emissions.

MANAGEMENT REPORT

ActionSee p. 22• The above goals are applicable only in Japan. The goals for overseas locations will be
determined upon consultation in or after fiscal 2013.

ActionFiscal 2013 goal

Medium- to long-term goals

Greenprocurement

Revise the lists ofprohibited andrestricted substances.

Continue to implement strict control over theuse of chemical substances in equipment.
Strengthen the link with suppliers’
environmental management systems.

Environmental
education

Promote a modal shift.
Continue monitoring.
Environmental
communication

Biodiversity

Fiscal 2013 goal

Medium- to long-term goals

Continue to obtain ISO 14001 certification
for the Group’s plants.
Formulate andimplement an
education program(Japan only).

Implement throughout the Group.

Continue to publish andenhance Environmental and Social Reports.
Determine a policy
and formulate a plan
upon investigation andexamination.

SOCIAL REPORT

Reduction ofenvironmental
impact oflogistics

ActionEnvironmental
management
systemEnvironmental
management

EHS REPORT

Procurement
and logistics

Start activities from fiscal 2014 upon
investigation and examination.

We will continue using technology to address environmental
problems in order to meet the expectations of stakeholders

Hirofumi Kitayama
Representative Director
Executive Vice President
General Manager
Manufacturing Division (Quality)
Tokyo Electron Limited

The conservation and continuous improvement of the global environment is one of our priority
issues. Based on this recognition, we are working to decrease environmental impacts throughtechnology. Although our environmental goals have been renewed, our most importantenvironmental missions remain the same: reducing the power consumption and CO 2 emissions ofour products during their operation at our customers’ factories. By delivering such environmentally
sustainable products, we will strive to achieve the revised goals in order to maintain the trust of
our stakeholders.

11Management Report
The Tokyo Electron Group is strengthening its corporate governance aswell as improving and reinforcing its internal control system and risk
management system with the aim of maximizing its corporate value.

Corporate Governance• Corporate governance policies• Internal control and risk management systems

In order to maximize corporate value and enhance shareholder

To more effectively strengthen the internal control and risk management systems of thesatisfaction, the Tokyo Electron Group is endeavoring to establish andTokyo Electron Group, we are implementing practical measures in line with the Funda-

operate optimal and highly effective structures of governance based on

mental Policies Concerning Internal Controls within the Tokyo Electron Group. We haveits three basic principles: 1) Ensure the transparency and soundness

also established the Risk Management & Internal Control Department, which evaluatesof business operations; 2) Facilitate quick decision-making andand analyzes risks that could affect the Group. Important risks are mitigated, and thethe efficient execution of business operations; and 3) Disclose

status of risk management activities is reported regularly to the Board of Directors.

information in a timely and suitable manner.

• Risk management initiatives• Corporate governance framework

1 Information security

Tokyo Electron uses the statutory auditor system based on the Companies

Tokyo Electron has a framework in place to prevent any IT system-related inci-

Act of Japan, and furthermore has established its own Nomination

dents from occurring under the TEL Group Information Security Policy. We have

Committee*1 and Compensation Committee*2 to raise the transparency

also established the Regulation for Management of Technical and Businessand objectivity of management. The company has also adopted theInformation common to the Group in order to ensure management of confiden-

executive officer system to streamline the decision-making process.

tial information and the safe and effective utilization of information assets.

Moreover, Tokyo Electron has been disclosing the individual remunerationof representative directors since 1999 in recognition of the importance ofmanagerial transparency for shareholders.
*1 Nomination Committee: This committee nominates candidates for directors and acandidate for CEO, which it submits at the Board meeting for approval.
*2 Compensation Committee: This committee proposes the remuneration to be paid torepresentative directors at the Board meeting for approval.

• Board of Directors

2 Export trade control
We are working to reinforce our export compliance system by setting up anorganization responsible for export trade control throughout the Group and bydefining Security Trade Regulations. We also regularly organize meetings to
explain export control and provide web-based training for Group employees.

3 Business continuity management (BCM)

The Board of Directors consists of 14 members, two of whom are outside
directors. In order to ensure that Tokyo Electron can respond quickly tochanging business conditions, and to more clearly define management
accountability, the term of office for directors is set at one year.

In order to fulfill our social responsibility by ensuring business continuity at
the time of an emergency, such as an earthquake or other major disaster or
during an outbreak of an infectious disease, we have formulated a BusinessContinuity Plan (BCP) and review it as necessary. In May 2012, we executed a
BCP drill based on scenarios concerning a major earthquake hitting Tokyo.

• Board of Statutory Auditors
Tokyo Electron has four statutory auditors, two of whom are outside auditors.
The statutory auditors not only attend meetings of the Board of Directors,
the Top Management Conference and other important business meetings,
but also conduct operations audits and accounting audits, and evaluate risk
management, in addition to auditing the performance of duties by directors.

• Audits by the internal audit department
The Global Audit Center, which is the internal audit department of theGroup, is responsible for auditing the business activities of the Group’s
domestic and overseas bases, as well as their compliance and systems, andevaluating the effectiveness of internal control systems. When necessary,
the Global Audit Center also provides guidance to operating divisions.

Diagram of the Corporate Governance Framework, Internal Control System and Risk Management System
Annual Shareholders’ Meeting• Compensation Committee• Nomination Committee

Board of Directors• Chief Business Ethics Director• Chief Internal Control Director

Statutory Auditors

Independent Auditors

Confirm the progress of improvements and give instructions

Representative Directors

Request for improvement/ReportCompliance & Internal Control Executive Officer

Audit and improvement reports

Request for improvement/Report

Executive Officers

Internal Audit Dept. (Global Audit Center)• Ethics Committee • Information Security Committee

Committees • Export Trade Control Committee

Request for improvement/Report

Risk Management & Internal Control Dept.
Request for improvement/Report

Business Depts.

12

Audit

Monitoring

Check and balance

Administrative Depts.

Compliance

The Tokyo Electron Group acts in strict compliance with business ethics andapplicable laws to ensure that its corporate activities are fair and trustworthy.

• Stance on business ethics and compliance

pertinent laws, regulations, international standards and internal company
rules, and consistently apply these rules in all of their activities.

Trust from stakeholders is the cornerstone of business activities. In
order to maintain trust, it is necessary to continuously act in rigorous

1 Internal reporting system

conformity to business ethics and compliance. In line with the

In the event that an employee becomes aware of any activity which

Fundamental Policies Concerning Internal Controls within the Tokyo

may violate a law, regulation or principles of business ethics, the GroupElectron Group, all Group employees are required to maintain highoperates an internal reporting system that employees may use to report

standards of ethics and to act with a clear awareness of compliance.

their concerns. The entire Group has established an ethics hotline and• Code of Ethics, Chief Business Ethics
Director, and Ethics Committee

overseas base. In all cases, this system ensures that strict confidentiality
is maintained to protect the whistleblowers and ensure that they are notsubject to any disadvantage or repercussions.

In 1998, Tokyo Electron formulated the Code of Ethics of the Tokyo
Electron Group to establish uniform standards to govern all of its global

2 Compliance education

Business Ethics Director and established the Ethics Committee, which

Through the Group’s e-learning system, we provide a common training

is responsible for promoting business ethics awareness throughout

program covering the basics of compliance, internal control, confidential

the Group. The Ethics Committee comprises the Chief Business Ethics

information management and other topics, which all executives andDirector, the Ethics Committee Chairman, and presidents of major Group

employees are required to complete, as well as a training program oncompanies in and outside Japan. The members meet semiannually, reportinsider trading and other subjects aimed at different levels of personnel.

on ethics-related issues faced by each company, and discuss measures to

We regularly and actively encourage employees to participate in training

further improve ethical behavior and compliance.

via these programs. We also make information on compliance issues

The Code and its Q&A section areavailable to employees on a dedicated site on our Intranet and take otherpublished in Japanese, English, Korean

steps to promote broad awareness of compliance throughout the Group.

MANAGEMENT REPORT

business activities. In the same year, the company appointed a Chief

HIGHLIGHT

a compliance hotline, and this reporting system is also in place at eachand Chinese, and the company distributes

3 Confirming of information on Japanese laws

including those overseas. Moreover,

In order to reduce the risk of legal compliance violations, we regularly

the Code is appropriately reviewed andidentify and clarify the Japanese laws that affect company operations andrevised in response to changes in theregulations. Information regarding revisions to relevant laws is received inenvironmental and social demand. Thea timely manner via an external Web service and appropriate responses

most recent revision of the Code and Q&A
was in April 2011.

EHS REPORT

it to all Group executives and employees,

are taken, such as amending internal regulations, changing operational
Code of Ethics booklet

http://www.tel.com/environment/corp_governance/compliance/ethical.htm

4 Follow-up on compliance survey
Following a finding by a December 2010 compliance survey targeting• Compliance & Internal Control Executive Officer
Tokyo Electron has appointed a Compliance & Internal Control Executive
Officer from among the executive officers to raise awareness ofcompliance across the Group, and further improve its implementation.

• Framework for thorough implementationof compliancethe executives and employees of all Group companies that there is aneed for education on the issue of workplace harassment, in fiscal 2012
we focused on measures to prevent these types of incidents occurring.
Measures taken include informing all employees of the availability ofa contact point for consultation, as well as providing training to theconsultant staff. In March 2012, we also provided managerial personnel
at Group companies with web-based training on workplace harassment,with approximately 2,300 employees taking part.

Tokyo Electron has drawn up the Compliance Regulations setting out
basic compliance-related requirements in line with the Code. The
Compliance Regulations are intended to ensure that all individuals whotake part in the business activities of the Group clearly understand the13

SOCIAL REPORTThe Code of Ethics of the Tokyo Electron Group:

procedures, and notifying all personnel affected by the revisions.

EHS Report
EHS Management

The Tokyo Electron Group regards environment, health and safety activities(EHS activities) as among its top business priorities.

Fundamental idea behind EHS activities
and our EHS promotion system
The Tokyo Electron Group regards human health, safety and

The Tokyo Electron Group’s EHS promotion system

the global environment as three of its most significant business

Global EHS Committee

priorities. Committed to earning the trust of all of those involvedin our business operations and to carrying out our businessactivities accordingly, we base our actions on our belief that EHS
activities will lead to long-term benefits for the entire Group. As
a responsible corporate citizen, we are committed to realizing ahealthier and more thriving society through implementation of

Product
EHS

Customer-site
EHS

Plant and
Office EHS

EHS activities
concerning theGroup’s products

EHS activities atcustomers’facilities

EHS activities ineach region

our EHS activities.
We have established a system to promote EHS activities
throughout the entire Tokyo Electron Group. Our EHS activities coverISO 14001 certified plants and offices
Company namePlant/office name Certification date

three areas: Product EHS; Customer-site EHS, which concerns

Tokyo Electron Tohoku Ltd.

Tohoku Plant

February 19, 1998

product delivery and installation operations; and Plant and Office

Tokyo Electron Kyushu Ltd.

Koshi/Ozu Plants

March 26, 1998

Tokyo Electron Yamanashi Ltd.

Yamanashi Plant(Fujii/Hosaka)

May 15, 1998

EHS. These activities are overseen by our Global EHS Committee.
Our Group companies—manufacturing subsidiaries inTokyo Electron Miyagi Ltd.

Taiwa Plant

March 1, 2005

based on ISO 14001 standards and are currently in the process

Tokyo Electron Technology
Development Institute, Inc.

Sendai Office

June 24, 2010of obtaining ISO 14001 certification.

Tokyo Electron Device Ltd.

Yokohama Office

July 14, 2004

particular—have introduced environmental management systems• EHS training

checklist covers not only basic information such as site area and

The Tokyo Electron Group offers EHS training courses consisting of

total floor area but also input and output analysis, including theseveral levels for both Group employees and employees of partner

type and volume of energy used, volume of water consumption,companies who work at the Group’s facilities. The training program

implementation status of recycling, and usage of gas and chemicals

for new employees also includes mandatory EHS instruction.

(input), as well as the volume of emissions, water discharged, andwaste generated (output). All the data were checked against relevant• EHS monitoring systemlaws and regulations.

In order to enhance the effectiveness of our EHS management system, we
continually increase the level of auditing concerned with monitoring system
functions and results. Auditing is performed from multiple viewpoints,
including within plants and offices and within the Group, and by third parties.
Tokyo Electron’s manufacturing subsidiaries make every effort tocomply with laws and regulations, carefully checking environmental
laws, emissions standards, and other pertinent regulations while alsoestablishing their own standards for some substances.
In fiscal 2012, there were no environment-related accidents,
violations, or litigations.

Environmental auditing underway• Biodiversity
The importance of protecting biodiversity during corporate activities
is increasing. Under our new Environment Vision (see p. 10), the• Environmental checking at newly
established business locations

In fiscal 2012, we conducted environmental audits at plants andoffices located in overseas markets, using a unified checklist. The
14

Tokyo Electron Group will investigate and analyze its current statusconcerning this issue and then determine a policy and plan in fiscal
2013 to promote the protection of biodiversity.

Tokyo Electron’s Environmental Commitment, defined in 2008
We aim to develop equipment that enables a 50% reduction—compared to 2007 levels—of
the total environmental impact of new customer factories scheduled for completion in 2015or later.
We aim for a 50% reduction—compared to 2007 levels—of the impact of our business andtransportation activities on the environment by 2015.
We will strive to achieve these commitments in partnership with our stakeholders.

The Commitment
is expected to be
fulfilled ahead ofscheduleplants including those for photovoltaic power sources, energy conservation• Environmental goals expected to be

activities, and the reorganization of business sites. By utilizing carbon

achieved ahead of schedule

The Tokyo Electron Group has been working on various environmental activities(including that made available under the government scheme to support

at customers’ factories as well as within the Group with the aim of reducing

recovery following the Great East Japan Earthquake), which amounted

environmental impacts by 50% over the baseline year of fiscal 2008 by the end

to approximately 50,000 tons, as well as through the use of a renewableof March 2015. However, since this goal is expected to be achieved earlier thanenergy programs in the United States, CO2 emissions per unit of sales*3

planned (in fiscal 2012), we have set new environmental goals (see p. 11).

and total CO2 emissions were reduced by 52% and more than 60%,

HIGHLIGHT

offsetting*1 with a domestic clean development mechanism (CDM)*2

respectively, making it very likely that we will achieve the 2008 goal soon.
2 -2 Customer shipments

The selected major pieces of equipment are expected to achieve thecustomers in fiscal 2012 decreased by 54% to approximately 66,000

target of a 50% reduction in CO 2 emissions per 300 mm wafer soon.

tons, and by 22% per ton-kilometer*4. For shipments outside Japan, theCO2 emissions generated during the transportation of products toshare of marine transportation increased by more than 20 points over

2 Reduce the environmental impact of our businessand transportation activities by 50%

the baseline year of 2008 to 37.8%. In order to address longer shipment

2 -1 Business activities

continue our efforts to minimize lead time, reduce equipment weight bytimes resulting from a shift from airborne to seaborne shipping, we will
reducing the number of parts used, and raise local procurement rates.

responsible for the development and manufacturing of products, were

*1 Carbon offsetting: A system by which companies can compensate for part or all ofgreenhouse gas emissions that cannot easily be reduced by purchasing credits equal
to the amount of reduction, or reabsorption, of greenhouse gases elsewhere*2 Domestic clean development mechanism (CDM): The approved mechanism for CO 2
emissions reduction under Japan’s Domestic CDM System (a Japanese government
scheme that allows small and medium-sized businesses to receive funding, technology,
and technical support from large businesses in order to work collaboratively to reduce
CO 2 emissions and trade the reduced amount as emission credits)*3 Per unit of sales: CO 2 emissions from business activities ÷ net sales*4 Ton-kilometer: A unit of measurement equal to the weight in tons of goods transported
multiplied by the number of kilometers transported

reduced in fiscal 2012 by approximately 25,000 tons to about 88,000 tons
compared with fiscal 2008, when the Environmental Commitment wasformulated (about 113,000 tons when calculated using the fiscal 2008
standards regarding applicable plants and offices and power factor). Thisis due to environmental investments made for the Miyagi and Yamanashi

EHS REPORT

CO2 emissions from our business sites, consisting mainly of plants

MANAGEMENT REPORT

1 Develop equipment that enables a 50% reduction in
the total environmental impact of customer factories

Goals and results for fiscal 2012 EHS activities and medium-term goals for fiscal 2013 onward

EHS
management

EHS internal audit

Reduction of productrelated environmental
Product-related impacts
initiatives for theenvironment
Measures to reduce theuse of regulated chemical
substances in equipment
Logistics-related Reduction of logisticsinitiatives for the related environmental
impacts
environment
Reduction of plant andoffice environmental
Plant and office impacts
initiatives for theenvironment
Promotion of waste
recycling
Health andsafety related
initiatives

Reduction in the numberof accidents/disasters
involving injuries orfatalities

Medium-term goals
Perform EHS internal audit at plants andoffices across the supply chain.
Reduce environmental impact by half in
FY2016 (in comparison to FY2008).
Basic unit: CO 2 emissions per 300 mm
of wafer
Shipment of equipment with 98.5% ormore of parts in compliance with theEU’s RoHS
Reduce environmental impact by half in
FY2016 (in comparison to FY2008).
Basic unit: CO 2 emissions per
ton-kilometer

Performed safety audits at
production facilities.
Implemented measuresfor 30-50% reduction in
major equipment and maderecommendations to customers.
Continued shipment of equipment
containing reduced amounts ofchemicals since October 2008.
Achieved a 54% reduction in
total CO 2 emissions and a 22%
reduction in CO 2 emissions per
ton-kilometer.
Total CO 2 emissions reduced by
Reduce environmental impact by half in
60% or more
FY2016 (in comparison to FY2008).
Achieved a 52% basic unit
Basic unit: CO2 emissions per unit of sales
reduction.
Increased the recycling rate of the
Achieve a recycling rate of 97% or more.
entire Group to 97.4%.
Continue to achieve zero waste at
Achieved zero waste at production
production facilities.
facilities.
Establish a system to prevent accidents
Achieved a 50% reduction inthat may result in an injury or fatality,
accidents that may lead to a severe
and aim to eradicate accidents that may
injury, compared with FY2011.
lead to a severe injury.
Achieved target

Plans and goals for FY2013

Relatedpages

Conduct environmental audits as well.

p. 14

Reduce power consumption of major
models of each business unit by 50%
by FY2015.

p. 15
p. 16
p. 17

Continue to ensure that major modelsof each business unit contain 98.5% ormore parts that meet the EU’s RoHS.

p. 18

Promote a modal shift.
Continue monitoring.

p. 19

Achieve a 1% basic unit reduction overprevious fiscal year.
Comprehensive evaluation of basic unit
reduction at each plant and office

p. 15
p. 20

Maintain a recycling rate of 97% ormore.
Continue to achieve zero waste.

p. 22

Reduce accidents that may lead to asevere injury by 20% or more comparedwith FY2012.

p. 24

Achievement
level

Results for FY2012

Achieved 80% of target

Achieved less than 80% of target
15

SOCIAL REPORT

ActionEHS Report
Product-related
Initiatives for
the Environment

Tokyo Electron is working hard to reduce the impact of its products on theenvironment by making them more energy efficient and curbing the use ofhazardous substances. In addition, the company is also striving to reduce
the environmental impact of logistics by promoting a modal shift andcreating innovative packaging methods.

Reducing Environmental Impact
during the Use of Products• Tokyo Electron organizations for reducing
environmental impact

Tokyo Electron has two organizations working for the reductionof environmental impacts of products: the Product Environment
Compliance Meeting and Products Environment Value Meeting. The
Product Environment Compliance Meeting ensures that our equipment

Energy-saving Measuresfor Products
We are promoting the reduction of product energy consumption byfocusing on four approaches: reducing the energy used by the productitself; reducing the energy used by peripheral devices; ensuringsystematic and efficient operation of products; and ensuring energysaving operation of customers’ factories. The energy-saving featuresof each piece of equipment are summarized below.

and their parts and components fully comply with environmental
regulations and our voluntary programs.
The Products Environment Value Meeting has developed andstarted to implement roadmaps to reduce the environmental impactof each of our products. Specifically, while ensuring the effectivenessof each roadmap, the council is working to reduce the energy
consumption of equipment, address chemical substance-related
matters, enhance efficiency in the use of processing gases and liquid
chemicals, and improve the environmental performance of existing
equipment. The progress of these initiatives is monitored as part of
the Group-wide medium- to long-term plan.

• Technology Symposium
The Tokyo Electron Group held its 14th Technology Symposium
in January 2012 at which a variety of environmental technologies
were presented. In a poster session, Tokyo Electron divisions anddepartments engaged in a lively exchange of ideas and information inorder to share innovative technologies.

Plasma Etch System
Reduced energy consumption of
peripheral devices
A chiller that cools the inside of aplasma etch system and a pumpneeded to maintain a vacuum within
the chamber have been designed tooperate intermittently according to thestatus of the system, leading to a 25%
reduction in energy consumption(including a reduction in the volume ofcoolant and N 2 used).

Single Wafer Cleaning System
Recycling of pure water
Waste fluid flow paths are divided into thosefor recycling and those for discharge toenable collection and recycling of pure water.
Cleaning system

Cleaning system

Collection
Discharge

Recycling

Discharge

Wafer Prober
Reduced volume of dry air
Technology Symposium

The volume of dry air produced has been cut by up to 60% comparedwith traditional products by installing a dew point meter to monitor andadjust the volume of dry air used.
Dry air

Adjusting the volume
Controlling the volume
Dew point meter

16

Wafer
proberCustomer’s Factory
Energy-saving operation of the factory(planned operation and proper management)

Thermal Processing System
Reduced volume of nitrogen used

SystemEquipment
Reduced energy usage of the equipment itself

Optimized nitrogen inflow volume

HIGHLIGHT

Efficient management

The volume of nitrogen used has been
reduced by 60% compared with traditional
products by monitoring and controlling theoxygen content in the loading area, where
wafers are loaded for input into thereaction furnace.
Reaction
furnace
Loading area
Oxygenmeter

MANAGEMENT REPORT

Gas
supply box

Constantly monitoring the oxygen content

Reduced energy usage of peripheral devices
Pump

Cooling Chiller

Scrubber

Peripheral Devices

Recycling of ruthenium (Ru)
Ruthenium used during semiconductor
fabrication is collected, re-refined andreused without being returned to ametallic state, making it possible for
us to reduce CO 2 emissions byapproximately 30% compared with thetraditional process, where only newly
refined ruthenium is used.

Material
manufacturer

Visualization of energy usage (currently under development)

EHS REPORT

Eco Monitor

Single Wafer CVD System

Equipment Process
Trap

Collection

Various types of energy used by the different types of equipment aremonitored according to the SEMI S23* guidelines, and the energy use iscompared and analyzed to support energy conservation.

Coater/Developer

ECO Data
ECO Monitoring

The volume of exhaust fromeach rotary cup module in theequipment is controlledaccording to the operational
condition.
Cup modules* SEMI S23: Guidelines for energy conservation for semiconductor production
equipment issued by Semiconductor Equipment and Materials International(SEMI), an international industry organization for semiconductor/FPD production
equipment and material manufacturers

Cup modules

The same
exhaust flow rate
Exhaust

Silicon carbide (SiC)
Epitaxial CVD System

SOCIAL REPORT

Adjusting the exhaust volume
to optimal levels

ExhaustPhotovoltaic Panel
Production Equipment

17

EHS Report
Measures against Regulated Chemical Substances
The Tokyo Electron Group’s policy regarding regulated chemical substances:1W e will quickly supply products that are in compliance with the laws and regulationsof countries in which our customers operate.
2W e will set our own standards and continue to make efforts to reduce the use ofregulated chemical substances in our equipment.

• Voluntary measures taken to reduce the use ofregulated chemical substances in equipment

Although the Tokyo Electron Group’s products are not subject to theEU’s RoHS* 1 Directive, a widely known set of standards regulating*2 Globally Harmonized System ofClassification and Labelling ofChemicals (GHS): A system agreed
upon by the United Nations that is
intended to provide unified standards
across various countries for theclassification of hazard level, labelingand the content of (M)SDS.

the use of hazardous chemicals, the Group is committed to voluntarily

Chemicalidentification
Pictogram
Signal word
Hazard statement
Prevention
measures
Accident
response
Safety storage

reducing the use of the six substances specified by the directive:

Reference/MSDS
Emergency
phone number

lead, mercury, cadmium, hexavalent chromium, polybrominatedExample of a label that complies withJapan’s GHS standards

biphenals (PBBs) and polybrominated diphenylethers (PBDEs).
In addition, we work with our suppliers to promote the use ofalternative products that meet the requirements of the directive, while

3 Europe has instituted the Registration, Evaluation, Authorisation and

we also use a dedicated database to manage the chemical substances

Restriction of Chemicals (REACH) regulation*3 , a standard that requires

contained in the components and parts used in our products.

that safety information related to exposure be provided for a productFrom the second half of fiscal 2009, we began shipping equipment

containing more than 0.1% in weight of any substance of very highcontaining 98.5% or more parts that meet the directive. The share ofconcern (SVHC), as well as the Regulation on Classification, Labellingthese pieces of equipment with fewer regulated chemical substances as

and Packaging Substances and Mixtures (“CLP Regulation”)*4, whicha proportion of our major pieces of equipment exceeded 50% as of thehas a broader scope than the GHS. In compliance with these standards,

end of March 2012. They include the following:

we consistently undertake investigations to identify the presence of any• CLEAN TRACK™ LITHIUS Pro™

SVHC in our equipment and provide necessary safety information when a• CELLESTA™+SVHC amounting to more than 0.1% is present in any of our products.

• TELINDY PLUS™

4 With regard to the battery regulations*5 enacted by the EU and Taiwan,• Tactras™ RLSA™ Etch

we check whether applicable batteries are used inside our products andWe will continue to strive to further increase the proportion.

take necessary measures to maintain compliance with the requirements.

*1 RoHS: Restriction of the Use of Certain Hazardous Substances in Electrical andElectronic Equipment

We have also begun building a framework that will enable us to fully• Complying with the laws and regulations
in countries and regions where ourcustomers operate

1 We provide equipment in full compliance with China’s versionof RoHS, enacted in March 2007, to which Tokyo Electron Group’s
products are subject. China’s RoHS, like the EU directive, regulates thecomply with these regulations from the very bottom of the supply chain.
*3 Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH): A
regulation pertaining to the registration, evaluation, authorization and restriction ofchemicals. For products containing SVHC in particular, manufacturers are required toprovide information on the SVHC content of their products as well as information toensure the safe use of the products.
*4 Regulation on Classification, Labelling and Packaging Substances and Mixtures (“CLP
Regulation”) (EC No. 1972/2008): An EU regulation concerning the classification,labeling, and packaging of chemicals and mixtures*5 Battery regulations: Regulations enforced in each country to facilitate the collection andrecycling of batteries, including the mandatory indication of the recycling symbol on batteries

use of lead, mercury, cadmium, hexavalent chromium, PBBs and PBDEs• Future plans

and requires that necessary information be provided to customers.

1 We will further increase the shipment ratio of equipment

2 Countries around the world have begun to introduce regulations

containing reduced amounts of regulated chemical substances.

based on the Globally Harmonized System of Classification and

2 We will effectively utilize the Joint Article Management Promotion-

Labelling of Chemicals (GHS)* 2 formulated by the United Nations.

consortium (JAMP) and other frameworks as well as broaden our

The Tokyo Electron Group makes available safety information oncollaboration with customers and suppliers to promote more rational andchemical substances specified by the GHS through (material) safetyaccurate measures for the management of regulated chemical substances.

data sheets, or (M)SDS, as well as labels affixed to containers

We will also continuously improve our chemical substance management

carrying chemical substances. Shown below is an example of a label

system to further strengthen our control over chemical substances.

in compliance with Japan’s GHS standards.

3 We will further tighten the management of regulated chemical
substances on a global level to achieve an even higher level ofenvironmental compliance of products.

18

Approaches to Reducing the Environmental Impact of Logistics• Tokyo Electron’s stance on theenvironmental impact of logistics

from airborne to seaborne shipping easier, we are working to reduce
production lead time to ensure there is no impact to on-time delivery.

Regulations concerning logistics have been tightened with a view to helping

CO 2 emissions from logistics and the proportion of

curb global warming. At the same time, companies are facing growing

marine transportation

demands for measures to reduce the environmental impact of their logistics.
For its part, the Tokyo Electron Group will continue striving to reduce

modal shift*1 for domestic

0

adopting packaging methods
with a smaller environmental
footprint.

140

50

and overseas transport andShift to modes of transportation with lessenvironmental impact

32.0

37.8

70
4

66
3

17.4

33
3
30

31
2
29

66

63

2008

2009

2010

2011

2012

40
30
20
10
(FY)

0

International logistics
Logistics within Japan
Proportion of marine transportation in international logistics• Green packaging
We use wooden frames and corrugated cardboard as packaging materials• Reducing the environmental impact of logistics

when shipping products. To reduce the amount of resources used for

We calculate and monitor CO2 emissions generated from sources regulated

shipments inside Japan. Furthermore, casters and special tools used forby the Act Concerning the Rational Use of Energy for logistics purposes

moving products on-site at the customers’ premises are collected and brought

within Japan, as well as CO2 emissions of international logistics between

back to Group plants for reuse as part of our efforts to save resources.

Group companies and to overseas customers. Our goal, set in 2008, has• The Ministry of the Environment’s support

been to cut CO2 emissions per ton-kilometer of international transportation

packaging, we also use reusable corrugated cardboard boxes for somevolume of CO2 emissions, and a 22% reduction on a per-ton-kilometerIn fiscal 2012, we took part in the Ministry of the Environment’s trial projectbasis. The share of marine transportation used for exports also increased

to support consignors seeking effective measures to reduce logistics-related

by more than 20 points over the baseline year to 37.8%.

CO2 emissions. The objective of this project is to calculate the actual volume

With respect to logistics within Japan, it is estimated that ourof greenhouse gas emissions generated from the supply chains of consignors

modal shift efforts in fiscal 2012 led to a reduction in CO 2 emissions

so as to help consignors plan countermeasures and identify problems inof approximately 92 tons.

the implementation of those countermeasures. By participating in thisproject, the Tokyo Electron Group could verify the calculation methods forusing seaborne shipping for all FPD production equipment as well as fordetermining the volume of CO2 emissions and the effects of the modal shift

semiconductor production equipment delivered to our customers in Korea

for international logistics and joint delivery implemented within the Group.

and parts of Europe and North America. In order to make the change

We will reflect the findings arising from this project in our future activities.

TOPICS
Reducing environmental impact by promoting the use ofrail transportation to carry goods from suppliersTokyo Electron Kyushu is actively promoting the use of rail transportation when
procuring from suppliers to reduce environmental impact. In fiscal 2012, the company
switched the mode of transportation from road to rail for freight from Osaka. To maintainhigh transportation quality, the company introduced various measures, including theemployment of special pallets that attenuate train vibrations. In February 2012, when therail transportation started, it is estimated that CO 2 emissions were reduced by 82% orapproximately 2.3 tons compared with the traditional freight transportation by trucks. Fromfiscal 2013, the company is also planning to eliminate the use of courier services and direct
delivery by suppliers so as to reduce the environmental impact of procurement logistics.
These efforts are expected to lead to not only the reduction of CO2 emissions but also
shortened transportation time, lower logistics costs, and decreased workloads.

Modal shift to rail transportation

Joint delivery
Tokyo Electron Kyushu

Kumamoto

Suppliers in Osaka

Osaka

19

SOCIAL REPORT

A modal shift in exports has also been promoted, and we are now

EHS REPORT

meeting this goal, in fiscal 2012 we achieved a 54% reduction in the total

project for consignors working on the
reduction of CO2 emissions from logistics

to half of fiscal 2008 levels by fiscal 2015. As a result of our efforts toward

MANAGEMENT REPORT*1 Modal shift: A shift in the mode of transportation. Specifically, switching fromconventional freight transportation by truck or aircraft to means such as marine andrail, which have a lower impact on the environment.

36.6

HIGHLIGHT

100

means as promoting a

50

145
5

150

its products through such

60

53.6

200

the environmental impact
caused by the transport of(%)(1,000 tons)

EHS Report
Plant and Office
Initiatives for
the Environment

From fiscal 2013, we will focus on the reduction of energy consumption, water usage, and waste
as well as the promotion of recycling, and strive to achieve set goals in each of these areas.
We are also fully committed to the strict management of chemical substances in considerationof their potential impact on the environment as well as on the health and safety of employees,
customers and others.

Measures to Help Prevent Global Warming• Efforts to reduce energy consumption

Electricity consumption

Since the goal for reducing CO 2 emissions set in 2008 is expected to be(Million kWh)achieved in fiscal 2012 (see p. 15) thanks to our vigorous environmental(Million kWh) 9.9(Million kWh)(Million 270.1
kWh)
300

investment and energy-saving activities, we have defined new goals forfiscal 2013 and onward. When these new goals were set, it was decided
that each plant and office would choose in what unit energy consumption
is measured and reported, depending on the form of its business. The
plants and offices in Japan have chosen to use kiloliter of crude oil
equivalent*1 as the unit for measurement and to report in accordancewith the Act Concerning the Rational Use of Energy. They will now
work to reduce energy consumption calculated based on that unit by atleast 1% year on year as required by the act. The Group as a whole willcontinue striving to reduce energy consumption across the board.

270.1

300

9.9
260.2

200
200
100
200

12.5
237.1

260.2
260.2
100
260.2
100
0
100
2008
0

249.6
249.6
12.5
249.6
12.5
237.1
237.1
237.1
2009

Japan

Overseas

Japan

Overseas

253.9

231.8

12.5

9.9270.1
270.1
9.9

300
200
300

249.6

248.9

23.8

16.0

231.8
231.8
16.0
231.8
16.0

253.9
253.9
23.8
253.9
23.8
23.8
230.1

16.0
215.8

215.8
215.8
215.8
2010

25.3

248.9
248.9
25.3
248.9
25.3

230.1
230.1
230.1
2011

25.3
223.6

223.6
223.6
223.6
2012 (FY)

0 2008
2009
2010
2011
2012 (FY)
2008
2009
2010
2011
2012 (FY)0Japan 2008Overseas
Breakdownof CO20092010from energy
20112012 (FY)
2 emissions

3% Japan
2 by source 1%
consumption*
Overseas
1%
2%
3%
3%
2%
2% 3 %
2%
2% 2%
2%
2%

FY2012

1%
1% 1%
1%
1%

102,032
FY2012FY2012
tons
FY2012 91%
102,032
102,032
102,032
tons
tons
tons 91%91%
91%

Electricity
Heavy oilElectricity
Electricity
Kerosene
Electricity
Heavy
oil
Heavy
City
gas oilHeavy oil
Kerosene
Kerosene
LPG
City Kerosene
gasCity oil,gasetc.
Light
LPGCity gas
LPG
LightLPG
oil, etc.
Light oil, etc.
Light oil, etc.

( t）

CO 2 emissions
from energy consumption
113,169 116,023
120,000
8,335
( t）
7,335
98,382( t）

Photovoltaic power generation at the new Miyagi Plant• Energy consumption and CO2 emissions
Power consumption in fiscal 2012 decreased by approximately 2% comparedwith fiscal 2011. Although power consumption at overseas plants and offices
increased due to the opening of new facilities, power consumption at sites inJapan decreased by 2.8% despite the addition of the Miyagi Plant. In fiscal
2012, it is also estimated that a total of 2,113 MWh of electricity was generated
by photovoltaic cells installed at the Yamanashi Plant and new Miyagi Plant,
which accounted for about 1% of the Group’s total energy consumption.
CO2 emissions generated from energy consumption increased by approximately 3% compared with fiscal 2011. However, because CO2 emissions
fluctuate considerably according to the change in electric power companies’
emission factors, the increase in CO2 emissions in fiscal 2012 is consideredprimarily attributable to the worsened power emission factors in Japan.

• The use of greenhouse gases other than CO2
In the process development of products, as well as dry etching and cleaning
processes, we use hydrofluorocarbons (HFCs), perfluorocarbons (PFCs)
and sulfur hexafluoride (SF6), which are greenhouse gases. In fiscal
2011, our use of these chemicals increased as a result of an increase inproduction and additions to the number of plants covered in our calculation.
We are currently promoting the installation of air treatment equipment, ,among other measures, to reduce greenhouse gas emissions.
20

102,032

90,665
14,908113,169 116,023
120,000 ( t）
13,537116,023
113,169 8,335
120,000 7,335
8,994
102,032
80,00098,382116,023
8,335
113,169
120,000
7,335
102,032
98,382 14,908
8,335 90,665
7,335
105,834
107,688
102,032
90,665 13,537
98,382
14,908
8,994
13,537
87,12480,00090,665
8,994
14,90884,84581,671
13,53780,0008,994
40,000107,688
80,000 105,834
105,834
107,688
87,124
84,845
87,124
105,834
107,688 81,671
84,84581,67140,00087,12440,00084,84581,6710
40,000
(FY)
2008
2009
2010
2011
2012
0

Japan

Overseas

Japan

Overseas
Overseas

0 2008
2009
2008
2009
0
2009
Japan 2008 Overseas*( t-CO 2 3 ) Japan

2010
2010
2010

2011
2011
2011

(FY)
2012
(FY)
2012
(FY)
2012

34,553

335,000
Greenhouse gases other than from energy
consumption* **( t-CO 2 3 ) 3( t-CO 2 )30,00035,000( t-CO2 3 )34,553

26,834

334,553152
334,55335,00025,000335,00026,83430,00026,83430,000152
17,74320,00028,824
26,834152
30,00015,88825,000165
18,652152
25,000770
15,00017,74325,00020,00017,743 28,824
20,000 10,610 11 15,888
165
28,824 18,652
12,231
8,486
15,88810,00017,743165
770
20,00018,652
28,82415,0004,350
15,888770
165
15,000 10,610
18,652
5,000
770
4,940
11
3,204
4,052
15,00012,231
3,053
3,926
8,486
10,61010,000
11
12,231
8,486
10,000 4,350
3,045
10,610
2,580
2,673
3,090
1,421
0
12,2314,350 118,486
10,000
5,000
4,940
2008
2009
2010
2011
2012
4,052
3,053
3,926
4,350
5,000 3,204
4,940 (FY)
3,204
4,052
3,053
3,926
3,045
2,580
5,000
2,673
3,090
1,421
4,940
HFCs3,204
PFCs 4,052
SF
Others
0
6
3,053
3,926
3,045
2,580
2,673
3,090
1,421
0 2008
(FY)
2009
2010
2011
2012
3,045
2,580
2,673
3,090
1,421
(FY)
2008
2009
2010
2011
2012
0
HFCs 2008 PFCs 2009SF 6
Others
(FY)
2010
2011
2012

HFCs
HFCs

PFCs
PFCs

SF 6
SF 6

OthersOthers*1 Kiloliter of crude oil equivalent: Volume of electricity, heavy oil, gas, and other types of energy
used × Per-unit calorific value of each energy type × Conversion rate for crude oil equivalent*2 We used adjusted emission factors for individual electric power providers for the emission
factor for electricity consumption in Japan in fiscal 2012. For the emission factor for electricity
consumption overseas, we used estimated factors calculated by the Federation of Electric Power
Companies of Japan based on values published by the International Energy Agency (IEA).
*3 t-CO2 : An unit indicating the amount of CO2 and other greenhouse gases emitted, absorbed orstored, which is converted to the weight of CO2 in tons with an equivalent greenhouse effectInitiatives to Conserve Resources
We are also encouraging the use of environmentally friendly paper• Our approach to resource conservationand introducing products that will help conserve resources, such as

The Tokyo Electron Group is working to minimize the use of limited

paper cups made from a bamboo-based material, for internal use.

natural resources by reducing the volume of paper and water used.
We also use recycled printer toner cartridges in our offices and actively• Efforts to reduce water consumption

cooperate with manufacturers in the recovery of end-of-life cartridges.

As the management of water consumption is becoming an
increasingly important issue for society, in fiscal 2012 we conducted

Our employees are encouraged to use duplex copying, to copy at aways to further reduce water consumption. Based on the results ofreduced size, and to digitize information and internal circulars. As athese studies, we have set a new goal of maintaining the same level

result of these efforts, the Group’s total use of copier paper in fiscal

of water consumption in fiscal 2012. Our water consumption in fiscal

2012 decreased by approximately 14%, or more than five million

2012 increased by approximately 9% year on year, partly due to thesheets of copier paper, compared with fiscal 2011. This is a reduction

increased volume of water used for process evaluations.

studies on how water is used and recycled at our company to identify

to less than half of fiscal 2008 figures, and the amount of paper used

Moving forward, we will continue monitoring our water consumption
MANAGEMENT REPORT

as a percentage of sales has also decreased.

to ensure that it will not exceed the fiscal 2012 level on a per-unit basis.

Copier paper consumption (Japan)

Water consumption(Thousand sheets)(Thousand m 3)

100,000

1,200

84,419

1,180
48

1,139

2

65

1

599

800

1,192

1,090

967
49

13,483

70

64
1

315

199

575
504

50,00030,0098,647
21,362

2008

Plants2009

Offices

39,102
25,721

16,30011,508
14,213
2010

22,802
2011

33,366
14,064

531

498

413

19,302
2012

531

506

296

301

400

(FY)

0

2008

2009

Industrial water2010

Tap water

2011

Groundwater

2012

(FY)

Overseas use

EHS REPORT

70,9360

HIGHLIGHT• Efforts to reduce the use of paper

TOPICS
SOCIAL REPORT

Efforts to reduce water consumption at Tokyo Electron Taiwan
Tokyo Electron Taiwan has adopted systems for collecting and recycling wastewater andrainwater at its Head Office building to ensure the effective utilization of water resources.
The wastewater recycling system collects around 2,000 m3 surplus water annually generated
from pure water production and reuses it in toilets and other places as well as to supplement
water for cooling towers and scrubbers. The system plays an important role in the reductionof wastewater discharged into sewers. The rainwater collection system collects rainwater on
the rooftop of the building and stores it in an underground tank with a capacity 10 m3. The
total annual volume of rainwater stored in the tank is estimated to be more than 2,000 m3.
The rainwater is used for watering plants on the premises of the Head Office and in an
adjacent park.

Supplement water forcooling towers and scrubbers

Rooftop
ToiletRooftop
5F

Toilet4F

Toilet3F

Utilize for watering plants
and park irrigation

Rainwater
storage tankToilet2F

Toilet1F
B1F
B2F

ToiletCollect surplus waterfrom pure waterproduction

21

EHS Report
Initiatives for Reducing Waste• Our approach to waste reduction and recycling
The Tokyo Electron Group conducts various activities to minimize
waste, recycle whatever waste is generated to the greatest extent

Recycling rate and generation of incinerated andlandfill waste (Japan)（t）（t）

possible, and dispose of non-recyclable waste in a proper and500

responsible manner.

500
400

To be more specific, we separate recyclable waste from
non-recyclables, use new manufacturing processes that do not
involve waste generation, hire only waste disposal companies
inspected and authorized by our company, periodically check final
waste disposal practices, and also focus on educational activities
related to the sorting of waste and other topics. Some business

400
300

97.0
97.0
366
366

97.3
97.3

97.3
97.3

288
288

276
276

300
200

97.4
97.4

100
(%)

Target: Maintain recycling
rate of 97%
or moreTarget: Maintainrecyclingrate of 97% 331
or more

100

331

245
245

200
100

80

100
0

80
0

0

sites have begun using electronic manifests* 1 to ensure proper
management of waste.
*1 Electronic manifest: A system in which the flow of industrial waste is managed via
a communication network linking information processing centers, the companies
generating the waste, waste collection and transportation companies, and waste
disposal companies. It replaces the conventional paper-based control manifest.

(%)

98.1
98.1

2008

2009

2008 and landfill
2009
Incineration
Incineration and landfill

20112012 (FY)2010 rate 2011
Recycling
Recycling rate

2010

2012 (FY)0

Breakdown of waste (Japan)
10%
5%
10%
5%
5%
5%
7%

• Volume of waste generated and recycling rates

7%
10%

Although the volume of incinerated and landfill waste increased over10%

FY2012

12,885FY2012
tons
12,885tons

the fiscal 2011 level, the recycling rate* 2 in fiscal 2012 was 97.4%,

63%
63%

Liquid waste
Liquidwaste waste
Metal/product
Paper
Metal/product
waste
Paper
Plastics
Plastics
Wood waste/packaging materials
Wood
Otherswaste/packaging materials
Othersachieving the target set in fiscal 2011 to maintain a recycling rateof 97% or more. As for liquid waste, including chemicals used in
our product development and evaluation processes, nearly 100% iscurrently recycled.

Recycling rate for industrial waste generated at Tokyo
Electron Group plants in Japan*2 Recycling rate: Recycled amount ÷ Amount of waste generated × 100• Zero waste

Plant

Recycling rate

Tohoku Plant

99.2%

Taiwa Plant

100%

The Tokyo Electron Group defines plants where less than 2% of

Yamanashi Plant (Hosaka)

100%

waste generated is incinerated or put into landfill as “zero waste

Yamanashi Plant (Fujii)

100%

plants.” In fiscal 2012, we achieved zero waste at all but one

Koshi Plant

100%

of our plants in Japan as a result of our efforts to reduce waste

Ozu Plant

100%

and recycle.

TOPICS
Waste recycling promotion by an overseas Group
company
Tokyo Electron U.S. Holdings, Inc. is actively promoting the recycling of waste. Its
activities include a campaign against the use of Styrofoam cups, which cannot bereused and do not biodegrade, as well as the recycling of mobile phones and otherelectronic waste. A total of more than 500 mobile phones had been recycled as of
fiscal 2012.

Campaign poster discouraging the use of Styrofoam products

22

Management of Chemical Substances• Our approach to the management of• Safe storage of PCBs

chemical substances

Based on the Act on Special Measures concerning Promotion of Proper
Treatment of PCB Wastes and the Waste Management and Public Cleansing
Act, the Tokyo Electron Group reports annually on the storage, managementand disposal of waste containing polychlorinated biphenyls (PCBs) to
the governor of each of the prefectures in which our plants are located.
We ensure that all PCBs, including traces of PCBs that were detected intransformers and condensers marked for disposal following the demolition of
one of our closed plants, are managed properly in accordance with the acts.
Volume of PRTR Class I Designated Chemical
Substances handled (Japan)• Compliance with the PRTR* law

Waste

7,343 kg/year

Transferred to sewage

2 kg/year

On-site landfill

0 kg/year

Removed

2,402 kg/year

Recycled

45 kg/year

13,709 169 14,361

12,450

1,617

2,108

10,000

9,693

1,359

1,607
1,459
1,200

6,285

5,021

5,427

3,977

2008

2009

2010

3,962

5,000

0

5,071

847
1,225

4,541

236
8,469

8,203

2011

2012 (FY)

Hydrogen fluoride and its water-soluble salts
Ethylene glycol
XyleneMethylnaphthalene

Others* PRTR (Pollutant Release and Transfer Register): A system under which the use ofchemical substances that may be hazardous to human health and the ecosystem, theirrelease into the environment, and their transfer (contained in waste) off the original
business premises are identified, tabulated, and disclosed

Volume ofsubstances handled

14,361 kg/year

Released into the air

23 kg/year

Released into water

0 kg/year

SOCIAL REPORT

Volume ofsubstances consumed

15,0004,546 kg/year

Input and output (FY2012)

Input
Electricity

248.9 million kWh

–2.0%

Gas

1.514 million m3+32.6%

Fuel

1,538 kl

–15.8%

Water

1.192 million m3+9.4%

Chemical substances(Class I Designated Chemical
Substances under the PRTR system)

Paper (copier paper)

14.3 tons

132 tons

OutputChange fromprevious year

+4.4%
–14.8%

Tokyo
ElectronGroup

Change fromprevious year

Total product shipment

15,236 tons

–37.4%

CO2 emissions

102,032 tons

+3.7%

12,885 tons

+4.1%

12,554 tons

+3.5%

331 tons+35.1%

from energy consumption

Waste
Recycled amountAmount ofincinerated/landfill waste

EHS REPORT

Material balance of PRTR-regulated substances(kg)

20,000MANAGEMENT REPORTIn accordance with the Act on Confirmation, etc. of Release Amountsof Specific Chemical Substances in the Environment and Promotion of
Improvements to the Management Thereof (“PRTR law”), we ensure thatchemical substances regulated under the act are managed rigorously,
and that the amounts of regulated substances used, discharged andtransferred are consistently monitored. Hydrogen fluoride, one of theregulated substances, is used in large quantities by the Group, particularly
during the cleaning of test wafers. Methylnaphthalene, a substance foundin heavy oil, is also used in boilers and other facilities at some of ourbusiness locations. We make sure to properly dispose of these hazardous
substances after use either through specialist waste disposal contractors
or using our in-house processing equipment. We will continue to properly
manage risk relating to these chemical substances.

HIGHLIGHT

The Tokyo Electron Group uses chemical substances mainly in thedevelopment and manufacturing phases of products. In the development
phase, whenever we introduce a new chemical substance or alter the
method of using a chemical substance, we make sure to check forenvironmental, health and safety risks and take the necessary measures
before the new substance or method is adopted. With regard to hazardousand harmful chemicals used in the manufacturing process, we arepromoting their replacement with safer substances.

23

EHS Report
Health and Safety
Initiatives

Health and safety are a vital foundation of our business activities.
The Tokyo Electron Group promotes “health and safety first” in every
aspect of its activities.

• Our approach to health and safety
As part of our social responsibility activities, the Tokyo Electron• Preventing workplace accidents*2 before
they occur

Group places great importance on ensuring that our customers,

Although the number of workplace accidents that occurred in fiscal

employees and everyone else involved in our business can work in2012 was almost the same as in fiscal 2011, the frequency of serious

a safe workplace environment, use our products safely, and enjoy

accidents that could have led to severe injury was reduced to half ofgood health.

that in fiscal 2011, thanks to vigorous activities aimed at eradicating

In fiscal 2012, we further expanded our existing safety inspection

serious accidents. These activities include checking, before our productactivities at our customers’ factories in Japan and overseas. For

is delivered, evacuation routes and emergency exits from clean rooms

newly built factories in particular, our safety specialists verify with

as well as the availability of safety facilities, such as a shower room thatthe customer the safety of the work environment as well as thecan be used when a worker is exposed to a liquid chemical; identifying

availability of safety equipment before our product is delivered, using

potential hazards at work sites; conducting safety inspections;a check sheet created specifically for new factories.

and providing training based on accident case studies. We conduct

When installing our production equipment in a clean room, forthese activities regularly to prevent accidents before they occur. In

instance, there is a risk of tripping or falling during the installation

fiscal 2013, its 50th year, the Tokyo Electron Group is reminding its

because a floor opening needs to be made so that the equipment canemployees of the Group’s “safety first” policy and working to further

be connected to power and other utilities* 1. In order to ensure that

foster a safety culture with the aim of totally eliminating workplace

workers are well aware of these risks and carry out all the necessary

accidents through the collective efforts of the entire Group.

safety measures, like installing barricades in the work area, we*2 Workplace accident: Following the guidelines of the United States Occupational Safety
and Health Administration (OSHA), the Tokyo Electron Group defines an accident
involving an injury to an employee as a “workplace accident.”

implement regular programs at each business site. These programs
simulate actual working conditions using one of our own clean rooms
to instruct participants on proper work procedures and how to deal
with dangerous situations. Similar safety education and practical

Workplace accident occurrence rate
(%)

100

100
3

hands-on training sessions are also conducted in other countries andregions around the world.
43

50

23
0

2001

2009

19
2010

2

45

1

1

0.5
2011

2012

(FY)

0

Occurrence rate of accidents that could lead to a severe injury*3 (FY2011 = 1)
Occurrence rate of workplace accidents in the Tokyo Electron Group (FY2001 = 100)
*3 Accident that could lead to a severe injury: An accident that, in the worst-casescenario, could result in a severe injury with after-effects

Practical training in a clean room
*1 In addition to a power cable, production equipment needs to be connected withexhaust, cooling water and pure water piping, among others.

• Safety education
Since July 2000, the Tokyo Electron Group has been promoting
Group-wide safety education to encourage a shared understanding of
the importance of safety. Basic safety education targeted at all Group

TOPICS
Multilingual safety promise booklet for overseas locations
The safety promise booklet summarizes important points to prevent
accidents and ensure safety in the workplace. These points have been
identified as the result of analyzing past accidents. Workers check thebooklet before work as an aid to preventing accidents. In addition to
Japanese, the booklet is now available in English, Korean and Chinese foruse by our overseas organizations, where it has proved popular due to its
ease of carrying and use.

24

employees is conducted using a manual created by the Group for thispurpose. More advanced safety education based on the guidelines• EHS seminar in Taiwan

compiled by the Semiconductor Equipment Association of JapanOn February 23, 2012, Tokyo Electron Taiwan organized a seminar(SEAJ) is provided for our technical employees who work in clean

to explain the Tokyo Electron Group’s environmental and safety

rooms. In light of our safety track record from fiscal 2011, advanced

commitments to our semiconductor and FPD manufacturer customers.
The seminar introduced efforts made by our plants and offices toelectrical work and the handling of heavy goods and chemicals.

protect the environment and save energy along with our environment-

These refresher courses are available via our Intranet and on CD, andfriendly products and technologies, while also detailing our safety

roughly 7,700 employees participated in these courses during fiscal

activities to reduce accidents and anti-seismic measures taken

2012. We also make sure that workers take a pre-work safety checkfor our plants and products. A video created for safety education

test prior to visiting customers’ factories to verify their understanding

purposes that explained how some past accidents occurred wasof customers’ rules and practices.

shown at the end of the seminar. The seminar attracted about 50
participants from leading semiconductor and FPD manufacturers in
Taiwan. Because Taiwan, like Japan, is earthquake-prone, there wereHIGHLIGHT

safety refresher courses in fiscal 2012 focused on the hazards ofmany questions regarding the anti-seismic measures, particularly
the seismic isolation technology adopted for our products. There wasalso a request that we produce a video similar to the one screened in
MANAGEMENT REPORT

the seminar that could be used throughout the industry.
Refresher training and pre-work safety check test on
the Tokyo Electron Group Intranet• Introduction of MoveSMART*4
We have introduced the MoveSMART program to our locations inNorth America and Europe as a way to prevent low back pain andother work-related musculoskeletal disorders. MoveSMART is a

EHS seminar in Taiwan

EHS REPORT

wide-ranging safety education program developed by U.S. company
Strategic Safety Associates based on martial arts, ergonomics* 5 ,exercise and sports science, industrial psychology, and actual workrelated experiences. The objective of
the program is to prevent backacheSpace-saving, thin seismic
isolation system(A system that protects
the equipment andcustomer’s products)

and other problems caused byadopting physically straining
postures during work hours. Trainers

The installation position of the system

Electron Group are assigned to our

SOCIAL REPORT

Seismic isolation technology

trained exclusively for the Tokyo*4 MoveSMART is a trademark or registered trademark of Strategic Safety Associates,
Inc. in the U.S. and other countries.

offices in North America and Europe
to implement the program.

Video explaining how past
accidents happened

Practice of MoveSMART*5 Ergonomics: A scientific approach in which both physical and psychological human
functions and properties are studied in order to design and develop equipment andenvironments based on the findings

TOPICS
Accident case study DVD
The Tokyo Electron Group has produced a DVD on case studies of clean
room and other accidents that have occurred in recent years and offeredcopies to the Semiconductor Equipment Association of Japan (SEAJ). The
DVD explains how accidents have occurred during work carried out at highelevation, near a floor opening, while carrying heavy objects, or underother circumstances during the setup or maintenance of semiconductor
production equipment. It then explores their causes and suggests ways
to prevent accidents from the viewpoint of workers. We created thisDVD with the hope that it will be utilized as a supplementary tool for theprevention of similar accidents, hazard prediction, safety education, andother safety management activities across the industry.

25

Social Report
Relationship with
Customers and Suppliers

In order to enhance customer satisfaction and realize mutual prosperity
with suppliers, the Tokyo Electron Group ensures that its policies on
product quality and procurement are and remain fair and honest.

• Our approach to product quality• Our approach to procurement

The objective of the Tokyo Electron Group’s product quality policy is to

The Tokyo Electron Group considers it important to build partnerships

generate customer trust in the Group through continuous provision ofwith suppliers based on its corporate philosophy and code of conduct,

products and services that consistently satisfy its customers. In order toto develop mutual trust with them, and to seek mutual growth.

establish and maintain a manufacturing system that does not produce
defective products, we have acquired ISO 9001 certification and work toensure that our product quality management system operates effectively.
The Tokyo Electron Group’s Commitment to Quality
1. Quality is our top priority

TEL’s goal is to achieve the highest quality in the world.

2. Product quality awarenessAll employees must understand the importance of product quality
to the TEL’s business. Quality must always be given priority, even
if profits are temporarily affected. That is how we build long-term
trust, and contribute to society.

3. Observing company rules

Employees must observe the rules stipulated by each TEL
organization to ensure that quality remains our top priority andcontinues to improve. These rules and regulations are reviewed
regularly to ensure that they are appropriate and effective in oureffort to improve quality.

4. Employee responsibility

Employees are responsible for making product quality their top priority.
They must remain aware of potential problems, actively identify andanalyze them, and take necessary action for improvement.

5. Managers’ responsibility

Managers must monitor on-site conditions at all times, spot
problem areas, and give instructions for improvement. Managers
must ensure that their subordinates have a good understandingof the overall TEL business environment, including customers’
requirements, and must make employees aware of the importanceof enhancing the quality of all TEL products and services.

• Quality assurance system

Procurement Policy of the Tokyo Electron Group
1. Partnerships

Our business partners are focused on creating products that
achieve genuine customer satisfaction.
We evaluate fairly and select our suppliers based on our selection
criteria, and on the premise of continuous pursuit of high-value
technologies and open competition.
We are forging links with our suppliers that enable us to rely oneach other and to grow.

2. Compliance with applicable laws and social norms
We comply with laws and social norms aimed at ensuring fairness
in transactions and respect for individuals, and we engage inprocurement activities with integrity based on corporate ethics, sothat we will be highly valued as an excellent global company.

3. Ensuring quality and safety

Under our management policies of ‘Safety first’ and ‘Quality is our
top priority’ we pursue safety and quality in our parts and products,
on a global level.

4. Coexistence with the global environment

By actively employing environmentally-friendly parts andtechnologies (promotion of green procurement), we create productswith a low environmental impact.

5. Promoting lead-time reduction

To enable us to respond flexibly to market needs, we ensure leadtime reduction and stable supply to our customers.

6. Promoting cost reduction

We are reducing overall costs to enable us to offer products thatmeet market needs at prices that satisfy our customers.

7. Global procurement activity

In order to offer our customers parts and products that arecompatible with market needs, we have an open-door policy andpromote flexible and prompt procurement.

8. Information management

We keep strict control of the confidential information of our customers
and suppliers obtained by us in the course of our business.

The Tokyo Electron Group has established a quality committee• Communication with suppliers

comprising heads of the quality assurance departments of each

The Tokyo Electron Group not only uses electronic data interchange

business unit. The committee meets regularly to oversee efforts to(EDI)* for procuring parts and materials online, it also operates its

enhance product quality and address priority issues, thus promoting

own website as a supplementary tool to promote efficient two-way

the improvement of product quality for the entire Group.

communication with suppliers.
We promote suppliers’ understanding of the general circumstances ofFramework for the Tokyo Electron Group’s productquality system
President of Tokyo Electron
Executive Vice President of Tokyo Electron(General Manager of the Quality Division)

our business as well as our policies and creed through joint projects involving
a variety of issues, general day-to-day opportunities, and various specificplatforms, including the semiannual Production Update Briefing held by theGroup’s manufacturing companies and the annual TEL Partners Day.

* Electronic data interchange (EDI): A framework to facilitate the electronic exchange
of information related to commercial transactions among corporations in a unified
standard format

Quality Promotion
Department
Presidents/GMs of Tokyo Electron Group companies
Heads of the quality assurance departments in
the Tokyo Electron Group
Quality Committee
26

TEL Partners Day
held in fiscal 2012

Relationship with
Shareholders and Investors

The Tokyo Electron Group emphasizes fair, equitable, andtimely disclosure of information to and dialogues withshareholders and investors, both in Japan and overseas.

• Annual shareholders meeting

Tokyo Electron is committed to making information about the

To encourage as many shareholders as possible to attend annualcompany available in a fair, equitable and timely manner to ensure

shareholders meetings and fully exercise their voting rights, we send

that shareholders and investors can obtain an accurate, in-depth

out invitations well in advance—more than three weeks prior to theunderstanding of the company and its activities and can evaluate its

meeting—and avoid the date when most major Japanese companies

corporate value appropriately. We also value and respect opinions

hold their shareholders meetings. Shareholders who cannot attend a

received from our stakeholders concerning information disclosed

meeting can vote via the Internet. We also participate in the web-and utilize their feedback as a point of reference to guide our future

based voting platform for institutional investors operated by Investor

corporate management.

Communications Japan (ICJ).
Our website also carries notices of convocation, notices of resolution,
the results of the exercise of voting rights, and presentation materials.

Tokyo Electron releases timely disclosure information via theTokyo Stock Exchange’s Timely Disclosure Network (TDnet) and• Earnings release conference

promptly posts the same information on its corporate website.

We hold an earnings release conference to report our financial results

Even when it does not fall into the category of material information,

to securities analysts and institutional investors after every quarter.

we voluntarily disclose information which may be of interest to

By making these conferences open to members of the press, as wellstakeholders in a fair, equitable, and easy-to-understand manneras by posting all the material handouts on our website, we ensure

using various communication channels, including on our website orthat information provided at the conferences is also available toin printed form.

individual investors.

MANAGEMENT REPORT• Information disclosure methods

HIGHLIGHT• Our approach to information disclosure

To ensure that foreign investors have fair and equal access to our
information, all information is, in principle, released simultaneously in

Published IR materials
EHS REPORT

Japanese and English.

• Basic policy on returns to shareholders
Our dividend policy is to link dividend payments to businessperformance and earnings, and our basic policy for returns toshareholders is to maintain a payout rate of around 35% based on

Presentation materials used at
an earnings release conference

consolidated net income.

SOCIAL REPORT

We aim to maintain profitable growth in order to enhance
corporate value by effectively utilizing internal reserves andFinancial Review

concentrating investments in growing businesses while at the sametime delivering direct returns to shareholders through dividends
based on our performance and earnings.

Constituent of the
FTSE4Good Global Index

Materials prepared for anannual shareholders meeting
Financial Report

Tokyo Electron has been a constituent of the FTSE4Good Global Index
since September 2003. The FTSE4Good Global Index is a social
responsibility investment (SRI) index provided by the FTSE Group,a world-leading index firm wholly owned by the London Stock Exchange.

Annual Report

Factbook27

Social Report
Relationship with
Employees

We are striving to create a work environment that values employees’
enthusiasm, autonomy and willingness to take on challenges andenables them to reach their full potential.

• Basic concept of the Tokyo Electron Group’s Human Resource (HR) management system
In pursuit of our vision of becoming an energetic, dynamic and creative

is to fairly evaluate employees’ total job performance based on the following

company, the Tokyo Electron Group’s HR management system is designed

three criteria: 1 individual role (mission), 2 scope of abilities required

to help each employee achieve self-development and to contribute to theat each step of a process (competency), and 3 results achieved

greater dynamism of the organization. Our evaluation system does notaccording to role (performance). The competency factor in 2 is used

simply focus on results but also emphasizes the process leading up to them,not only for evaluation and assessment purposes but also as a guideline

including, in particular, the efforts made and the level of skills demonstrated

for each employee to improve their skills and for the Group to determine

by individual employees in achieving the results. The purpose of this systemcapability development targets for each employee.

Basic concept of the Tokyo Electron Group’s HR management system

MissionCompetency

Performance

Employee

Understand his/her individual/organization’s role.

Develop professional skills.

Capitalize on his/her skills to achieve his/herindividual/organization’s goals.

Company

Clarify and convey the company’s philosophy
and goals.

Provide all employees with opportunities todevelop their career and skills as required toachieve their individual/organization’s goals.

Point-addition scoring method
Ensure fair distribution of remuneration.

• Career development support

order to perform world-class work,” we promote employee health

The Tokyo Electron Group provides a variety of support to its

management through Group-wide efforts.

employees in response to their different career ambitions.

2 Childcare support program

1 Self-Declaration

We support a balance between work and childcare by offering a

Employees can communicate their preferred career path and submit

range of childcare support including childcare leave, childcare

other work-related requests by filling out a dedicated form. An

support working hours, nursing leave, and childcare support leave. In

interview is held and necessary arrangements are made as needed.

fiscal 2012, a total of 76 employees took childcare leave.

2 Open Job Posting System

3 Anniversary time off

Employees can apply at their own volition to join new projects or

Employees can take two weeks to one month of leave when theirprojects with a high degree of urgency. By widely recruiting eager

term of service has reached 10, 15, 20 or 25 years.

and aspiring employees from within the Group and giving them

4 Employee education

additional opportunities to develop their career, this system proves

We are also taking active steps to prevent on-the-job mental healtheffective in adding a greater level of dynamism to the organization, as

problems and continuously improve the work environment by

well as in promoting projects.

providing education on mental health and harassment.

3 Outstanding Employee Award
This award is presented to young and mid-career employees who
have actively undertaken challenges at the frontline of business andEnjoying both work and family!

produced great results for the Group. In addition to giving recognition

Tokyo Electron offers a range of childcare

to outstanding employees, the award is also intended to communicate

support and both managers and employees

the impressive performance of the award-winners to all employees as

are supportive about childcare. I was worried

a way of increasing motivation throughout the Group.

• Creating a comfortable work environment
We have introduced various employee support measures as part ofour efforts to create a comfortable work environment.

about returning to work after taking childcare
leave, but my boss and colleagues welcomedand supported me warmly, and this helpedme quickly regain my normal pace of work.
Although my child is already in elementary
school, I can still use the childcare support
working hours and other systems to attend

1 Health Declaration

school events and PTA activities as often

We announced our Health Declaration in February 2012. Basedas I’m able. To fulfill my responsibilities

on our firm belief that “the healthy growth of the Group can beachieved only through its human resources” and our “employees arevaluable assets and they must be mentally and physically healthy in
28

Yumiko Takai
General Affairs Department
Tokyo Electron Limited

concerning both work and childcare, I need to maintain a good balance
between them. I think Tokyo Electron’s childcare support program is welldesigned to fit our lifestyles and allows us to keep the balance.

• Respect for individuals

Successful human resource development requires employees that are
enthusiastic about learning, superiors and colleagues who support employee

The Code of Ethics of the Tokyo Electron Group prohibits any act ofharassment, discrimination based on gender, nationality, age, race, creed,
religion, and others, forced labor, and child labor. By strictly observing thisCode of Ethics, we make utmost efforts to create a work environment thatis free from discrimination and comfortable for everyone.

growth, and a corporate culture that fosters employee enthusiasm and development. By actively learning at TEL UNIVERSITY and applying what they havelearned to their tasks and in their workplaces, employees can not only achieve individual growth but also help promote the growth of the organization as a whole.
Going forward, TEL UNIVERSITY will continue to contribute to thegrowth of the Tokyo Electron Group by developing competent professionals.

Based on the belief that our “employees are valuable assets,” the1 Organizational capability development program

Tokyo Electron Group encourages and supports employees’ proactive

Managers learn how to share their future vision—a picture of theapproaches toward learning by establishing the following three principles:organization/team they want to realize—with their staff in the

1 The workplace must support employee development.

workplace as well as how to implement that vision while promoting the

2 Self-motivation and a sense of responsibility are the basic

growth of each staff member. This helps them to further increase therequirements for employees to develop their talents and careers.
3 The company must build a platform or framework that provides
employees with the opportunity and motivation to learn.

strength of their organization/team, even amid challenging conditions.
Training under this program is provided four times a year. In fiscal 2012, a
total of 76 managers took part in the
training. The training takes the form

continuously. In line with this belief, we are working to enhance ourof action learning, under which eachmanagement organization and maintain our educational budget.

manager is encouraged to pursue his• TEL UNIVERSITY

or her own future vision concerning

With the aim of providing employees with opportunities for continued

during the training through repeatedlearning and thereby enhancing the capabilities of both individual

practice in the actual workplace.

MANAGEMENT REPORTWe also believe that education and training only succeed when implemented

their organization/team discussed
Organizational capability
development program

employees and the organization overall, the Tokyo Electron Group has
established an internal educational institution. TEL UNIVERSITY is intended

2 Professional capability development program

to provide employees with opportunities to obtain the knowledge and skills

TEL UNIVERSITY also offers professional education for employees in various jobs,

necessary to perform world-class work and build their management andwith a particular emphasis on the semiconductor and other technical fields.
Regarding semiconductors, we provide a technical course targeted at

As part of its curriculum to develop the leaders of tomorrow, TEL

engineers along with a more basic course that provides employees who

UNIVERSITY teaches employees about management philosophy grounded

are not directly involved in semiconductor production technologies with anin ideals along with how to cultivate a broad perspective and deep

easy-to-follow introduction to semiconductors.

psychological insights, as well as general strategic abilities. ThroughIn technical seminars, Tokyo Electron’s internal experts in various fields

dialogue with the Group’s own executives and experts from various fields,

give seminars on their area of specialization based on the company’s actual

the training program also seeks to encourage employees to establish theirproducts. This facilitates the sharing

own values on which they can base their decision-making.

of practical knowledge that can beused by engineers at each site.
Many employees took part in theown vision and reflect on what actions to take today to make it a reality,

program in fiscal 2012, with 290 em-

with other participants providing input and feedback.

ployees participating in the semicon-

The Group’s executives also attend TEL UNIVERSITY courses andtake part in lively discussions with employees.

ductor courses and 413 employees
attending the technical seminars.

Professional capability development
program

Overview of TEL UNIVERSITY
Learn about Tokyo Electron
Executives

Introduction• MOT *
• Project management

Leaders
Mid-career
employees• Introduction for mid-career
recruits

Introduction
New/youngemployees

Increase organizational
capability
Action learning toward
Utilize technical knowledge
future organizational vision
gainedBecome professional• Introduction for new
employees•O rganizational capability
development program

Gain technical knowledge

Learn management skills• Technical lecture• Semiconductor• Core technologies• C ommon basic technologies•N ew group leader
development program• Basics of management

Undertake corporate
management
Become next-generation
top management• Top management training• N ext-generation top
management program• P re-next-generation top
management program• B asics of corporate
management

Learn about the world
Gain language skills• E nglish learning program• O ther languages

Get to know other cultures• U nderstanding different
cultures

Gain basic knowledge• Basics of work
• Baseline education• Basic technologies* MOT: Management of Technology
29

SOCIAL REPORTWe also offer a training program for group leaders in charge of theirrespective workplaces. During this program, group leaders express their

EHS REPORT

organizational capabilities as well as to develop the leaders of tomorrow.

HIGHLIGHT• Basic policy on human resource development

Social Report
Relationship with
Local Communities(Corporate Citizenship)

The Tokyo Electron Group seeks mutual developmentwith local communities through various communication
activities that foster a relationship of trust.

Major activities performed by the Group’s plants in Japan
Taking part in a traffic safety campaign
Since the majority of employees working for the Yamanashi Plant commute by car,we consistently remind our employees of the importance of safe driving. As part ofthese efforts, we took part in Safety Driving Challenge 123, a campaign organizedby the Traffic Policy Division of the Yamanashi Prefectural Government’s Linear
Transportation Bureau to realize zero accidents and zero violations during a periodof 123 days between July 21 and November 30, 2011. A total of 810 employees in
162 teams joined the campaign from the Tokyo Electron Group. We also participate
in the Driving Etiquette Ladies campaign organized by the Nirasaki Police Station
every year. In fiscal 2012, our employees engaged in traffic safety awarenessDriving etiquette campaign in fiscal 2011activities on the street, among other volunteer activities, during the campaign.

Tokyo Electron Yamanashi Ltd.
• Head Office : Nirasaki City, Yamanashi Prefecture• Number of employees: Approximately 900• Business:	Development and manufacturing of semiconductor
production equipment (single wafer CVD andcleaning systems), FPD production equipment, andphotovoltaic panel production equipment

Support for child welfare facilities andmedical institutions
As part of its contribution to local communities, Tokyo Electron Kyushu
each year conducts support activities for child welfare facilities and medical
institutions located in the vicinity of the Koshi Plant. Last year on July 7, theday of the “star festival” in Japan, employees delivering cakes to an orphanage
and a disabled children’s care facility were greeted with smiles and thanks
all round from the children. In a hospital in Koshi City, volunteer employeesof Tokyo Electron Kyushu—mainly those who joined the company in fiscal
2012—helped out at a bazaar held as part of the hospital’s summer festival
and assisted patients using wheelchairs. The new employees also provided anentertainment to patients and visitors during the festival. By working together
on the planning, preparation and implementation of the entertainment, the new
employees were able to experience the importance of teamwork, one of the TEL
Values. We will continue our activities to support local communities.

Tokyo Electron Kyushu Ltd.
• Head Office : Koshi City, Kumamoto Prefecture• Number of employees: Approximately 1,900• Business

30:	R &D, design, manufacturing, and installation ofsemiconductor and FPD production equipment

In May 2012, Tokyo Electron Tohoku took part in the Corporate Afforestation Program organized by the local
government to help prevent global warming and protect biodiversity. This is the second year the company
has participated in the campaign, following an earlier tree-planting activity in May 2011. The company

HIGHLIGHT

Afforestation projectis planning to develop a forest on land owned by Oshu City located to the west of the company’s plant in
the Esashi Core Industrial Park over the five-year period ending fiscal 2016. In this fiscal year, about 150
employees and their families, as well as representatives of the prefectural and municipal governments andon a 0.32 hectare plot of land located adjacent to the 0.14 hectares on which trees were planted last year.
The company will carry out weeding in the summer and take part in the program again next year.

Tokyo Electron Tohoku Ltd.
• Head Office : Oshu City, Iwate Prefecture• Number of employees: Approximately 730• Business

MANAGEMENT REPORTa forestry union, worked together to plant 640 konara oak trees and commemorative Japanese cherry trees:	Development, design, and manufacturing ofsemiconductor production equipment (thermal
processing system)
EHS REPORTSupport for Science Soccer School
Science Soccer School, a sports clinic for children in the
fourth to sixth grades, was held under the Tokyo Electron

SOCIAL REPORT

auspices. Designed to get kids interested in science throughsports, the event was constituted of two parts: a science
experiment session, in which the mechanics of soccer were
examined through the prism of science, and a training session,in which ex-J. League players offered the youngsters tips
and techniques for improving their game. About 100 local
elementary school children and their parents were invited totake part. Our employees worked as volunteers to support theoperation of the event.

Tokyo Electron Miyagi Ltd.
• Head Office : Taiwa Town, Kurokawa District, Miyagi Prefecture• Number of employees: Approximately 1,030• Business:	Development, design, and manufacturing of semiconductor
production equipment (plasma etch system)

31

Social Report
Relationship with Local
Communities(Corporate Citizenship)

Major activities performed by
the Group’s overseas locations

Fun Run event (China)
The fourth Fun Run charity event organized by the ZhangjiangGroup and Zhangjiang Parkyard Hotel was held on September 23,
2011, with around 30 companies taking part, including leading
Chinese semiconductor manufacturers.
Tokyo Electron (Shanghai) (TES) took part in the event for
the third consecutive year, fielding a team of 32. Fun Run, whichstarted four years ago with only 200 participants, has growninto a large event, attracting roughly 1,200 participants in 2011.
Donning red T-shirts, the runners took off on the four-kilometercourse at 8:40 a.m. As well as participating in the run itself, TES
also donates 5,000 RMB every year to two charities supported
by Fun Run: Giving Tree and River of Hearts. The total amountof donations raised by the organizer in 2011 for children living inpoverty and children with disabilities was about 200,000 RMB.
TES will continue to support these charities.

New green office building (Milan Office)The Italian Branch celebrated the re-opening of the Milan
Office in January 2012, following its relocation to a newbuilding in Vimercate. The new building is located fivekilometers away from the former office and 25 kilometersfrom the center of Milan. The management and employeescelebrated the re-opening Italian style by enjoying a
traditional Italian lunch together. The new building has been
awarded the top Platinum level of the Leadership in Energy& Environmental Design (LEED) certification issued by the

Christmas presents for orphaned children (Taiwan)

U.S. Green Building Council (GBC), attesting to its eco-

As in the previous year, Tokyo Electron Taiwan (TET) distributed

friendly credentials. The LEED green building program is an

Christmas presents to children at a local orphanage last year. This

internationally accepted system for rating buildings, homes

event was planned by the TET Welfare Committee and presents wereand communities designed, constructed, maintained andprepared in accordance with requests received from the children in

operated in such a way as to improve the environment andadvance. On the day of the event, the TET president and employees

promote human health. The new Milan Office is surrounded bydressed in Santa Claus costumes handed out presents to every child.

abundant greenery, well lit with natural light thanks to large

TET also encourages charitable giving by placing donation boxes inwindows, and designed to reduce energy consumption of air

office spaces where beverages and sweets are offered to employees

conditioners year round.

as well as by purchasing “red envelopes” (used for giving money tochildren during the New Year holiday) whose prices include donations.

32

Tokyo Electron Europe Ltd.

Tokyo Electron Taiwan Ltd.

• Head Office : Crawley, West Sussex, U.K.

• Head Office : Hsinchu, Taiwan• Business• Business: Headquarters for operations in Europe. Service andsales support for semiconductor production equipment:	Service and sales support in Taiwan; R&D of
semiconductor production equipment

Tokyo Electron (Shanghai) Ltd.
• Head Office : Shanghai, China• Business: Service and sales support in China

HIGHLIGHT

Han-Ma-Eum Sports Day (Korea)

Tokyo Electron U.S. Holdings (TEH) is promoting a variety of

In September 2011, Tokyo Electron Korea (TEK) organized aenvironmental activities, including the purchasing of renewable

sporting event on the sports grounds located on its premises.

electricity, which is estimated to have reduced CO 2 emissions byUnder a beautiful blue sky, the more than 300 employees andapproximately 1,000 tons at the Headquarter Office in Austin andtheir families who joined the Han-Ma-Eum Sports Day enjoyed

the Portland Office during fiscal 2012. The Portland Office has

a fun and lively event. Divided into four teams, participantsalso been awarded and recognized as a Gold Level customer, andcompeted in various sports and activities including soccer,

the Austin Office has been recognized by Austin Energy in various

ssireum (traditional Korean wrestling equivalent to Japanese

media such as billboards, newsprint and the internet.
The company has also introduced the “TEL is Green” campaign

Before the final ssireum match, onlookers were treated tothrough its internal intranet to raise employee awareness ofadorable dance performances by some of the employees’ small

environmental issues and provide employees with information

children, choreographed to Korean pop songs. Prizes were also

on environmental resources such as a ridesharing database forawarded to winners of individual competitions such as shooting

carpoolers, recycling opportunities, and air quality forecasts, to namebasketball hoops and “human spider-man,” a game in which

a few. The company also takes part in the “Keep Austin Beautiful
Adopt-A-Street” campaign in its local neighborhood and makes annual

onto a Velcro wall, each trying to

donations to The Nature Conservancy and the Clean Air Force.

SOCIAL REPORT

participants in Velcro suits jump

EHS REPORTsumo), arm-wrestling, tug-of-war, and water rocket launching.

MANAGEMENT REPORT

Promotion of environmental activities (United States)

get higher than the others.

Tokyo Electron Korea Ltd.
• Head Office : Hwaseong, Korea• Business: Service and sales support in Korea

Tokyo Electron U.S. Holdings, Inc.
• Head Office : Austin, Texas, United States• Business: U.S. Group headquarters

33

Comments from a Third-Party Expert
I have read Tokyo Electron’s Environmental and Social Report
2012 and received a further explanation of the company’senvironmental and social activities from the director of Tokyo
Electron’s Corporate Environment Promotion Department andothers. Here I express my views on this report as a third-party
expert. I would also like to note that I had an opportunity tovisit Tokyo Electron Yamanashi Limited, a Group company
responsible for manufacturing and development, as part ofthis review and inspected sites where semiconductor and FPD
production equipment is manufactured.

1. The new Environment Vision
Under the new Environment Vision, the company has set new specificenvironmental goals, including those for the reduction of energy
consumption, with a view to becoming a company that addresses global
environmental issues through technology. The new Environment Vision
specifies the company’s priority issues, which include not just the
reduction of the environmental impacts of the company’s plants, offices
and logistics operations but also the development and sale of moreenvironmentally friendly products with lower CO 2 emissions. This, I
think, will allow Tokyo Electron to share a common environmental policy
and goals and create common value with customers, thereby helping it
to maintain a favorable relationship with its customers and society atlarge, which will in turn facilitate the company’s sustainable growth.

2. EHS management
The company’s goal set in 2008 was to reduce CO2 emissions generated
from its business activities by 50% over the fiscal 2008 levels by fiscal
2015. However, because this goal is expected to be achieved in fiscal
2012 in terms of both per-unit emissions and total emissions, Tokyo
Electron has decided to set even more challenging goals. This proactive
attitude to continue improvement efforts rather than simply be content
with achieving the goal ahead of schedule is praiseworthy.
With regard to the company’s consumption of water, a precious
limited natural resource, the figure increased slightly over the fiscal
2008 level and by approximately 9% year on year. I hope, therefore, thatthe company will work even harder to reduce its water consumption.

3. Relationship with employees
Tokyo Electron is making efforts to create a work environment thatencourages employees to take on new challenges. The personnel
evaluation system, which focuses on the process of achieving goals,
various career advancement support systems, and the internal
educational institution are some examples of these efforts designed
to help each employee realize their full potential, and I think they are
beginning show results in the form of good business performance. In
order for the company to continue growing as a global company, it needs
to embrace a diverse range of employee experiences and views. I would
like to know what activities are undertaken and what policy is adopted by
the company with regard to this kind of diversity management, includingthat for employees of Group companies overseas.

4. Future issues
From this report, I was able to get a clear sense of the earnest efforts
made by the company toward environmental preservation and social
contribution as well as the effects brought about by such efforts. I
could also understand the efforts made by the company as a global
corporation to also build trust in overseas markets, such as thecompletion of the environmentally considerate Kunshan Plant in China.
However, the semiconductor industry is currently confronting majorchanges amid fierce global competition. In these circumstances, if thereport focused more on clearly explaining the position and role of Tokyo
Electron throughout its supply chain rather than just detailing its products,
the company’s corporate value would become clearer to stakeholders.
Note: T he third-party comment above does not constitute an opinion on the accuracy orcompleteness of the information included in this report.

Yoshito Nakamura
Professor, Faculty of Business Administration
Toyo University
Certified Public Accountant
Auditor, Supporting Organization of JOCV
Auditor, Kawasaki City Council of Social
WelfareDirector, Research Institute of Accounting for
Construction Industry

Response to the Third-Party Comment
I am deeply grateful to Prof. Nakamura, who once again took time out of his busy schedule to visit our development
and manufacturing sites and talk with members of the General Affairs Department at the Yamanashi Plant (Fujii/
Hosaka). I furthermore appreciate Prof. Nakamura’s efforts to understand our environmental and social activities. This
year marks an important year for us, the year we begin enhanced environmental and social activities with the aim ofachieving the new environmental goals. We take Prof. Nakamura’s recommendations concerning the reduction of ourwater consumption, diversity management, and activities across the supply chain seriously and will work even harder tofurther broaden and deepen our activities and to report them in the next and following issues of this report.
34

Toshiya Matsuda
Director
Corporate Environment
Promotion Department
Tokyo Electron Limited

Corporate Profile
Company name:Tokyo Electron Limited (TEL)

Net sales and operating income (consolidated)

Address:

Akasaka Biz Tower, 5-3-1 Akasaka, Mintato-ku,
Tokyo, Japan 107-6325

Phone:+81-3-5561-7000(Billion yen)(Billion
1,000 yen)
906.0
1,000
906.0

Established:

November 11, 1963

Capital:¥54,961,190,000 (as of April 1, 2012)

Main products:

Semiconductor production equipment, flat panel
display (FPD) production equipment, photovoltaic
panel production equipment

508.0
508.0

500
500

Number of employees: 1,259 (non-consolidated; as of April 1, 2012)
10,940 (consolidated; as of April 1, 2012)

168.4
168.4
0
0

2008

Net2008
sales
Net sales

Research & development

-2.1
-2.1
2010
2010

97.8
97.8
2011
2011

Number of Group employees

60.4
60.4
2012 (FY)2012 (FY)

10,491
10,491

10,204
10,204

10,595
10,595

10,94010,940

April
April
2009
2009

April
April
2010
2010

April
April
2011
2011

April
April
2012
2012

5,000
5,000

0
0

April
April
2008
2008

MANAGEMENT REPORTTokyo Electron Limited
Tokyo Electron Technology
Development Institute, Inc.

Tokyo Electron Yamanashi Limited
Tokyo Electron Tohoku Limited
Tokyo Electron TS Limited
Tokyo Electron Kyushu Limited
Tokyo Electron Miyagi Limited
Tokyo Electron Software
Technologies Limited

14.7
14.7
2009
2009

HIGHLIGHT

Manufacturing &development

633.0
633.0

418.6
418.6

Operating income
Operating income(Persons) 10,685(Persons) 10,685
10,00010,000

Japan

668.7
668.7

Net sales by division (Consolidated)

Field support

Sales & marketing

Tokyo Electron FE Limited

Tokyo Electron Limited
Tokyo Electron Device Limited

0.4
0.4(0.1%)(0.1%)

69.8
69.8
(11%)
(11%)
84.8
84.8
(13.4%)(13.4%)TEL Technology Center,
America, LLC
Tokyo Electron Korea Limited
Tokyo Electron Taiwan Limited

477.8 (75.5%)
477.8 (75.5%)

Manufacturing &development
Timbre Technologies, Inc.
TEL Epion Inc.
Tokyo Electron (Kunshan) Limited

Net sales by region (Consolidated)
4.4%
4.4%
9.1%
9.1%
9.5%
9.5%

27.1%
27.1%
13.7%
13.7%

FY2012FY2012
18%
18%

18.2%
18.2%

Japan
Japan
North America
North America
South Korea
South Korea
TaiwanTaiwanChina
ChinaEuropeEuropeSoutheast Asia
Southeast Asia

SOCIAL REPORT

Sales & field support
Tokyo Electron America, Inc.
Tokyo Electron Europe Limited
Tokyo Electron Israel Limited
Tokyo Electron Korea Limited
Tokyo Electron Taiwan Limited
Tokyo Electron (Shanghai) Limited
Tokyo Electron Singapore PTE. Limited

EHS REPORT

Research & development

Semiconductor production
Semiconductor
production
equipment
equipment
FPD/PV production
FPD/PV
production
equipment
equipment
Electronic components &Electronic
components &computer networks
computer networks
Other
Other

FY2012FY2012

Overseas(Billion yen)(Billion yen)

Tokyo Electron Limited summarized the values and codes of conduct of the Tokyo Electron Group as TEL Values
in April 2006. We will share TEL values with all employees of the Group around the world, which will in turndrive us toward new growth in the future.

TEL Values

TEL Values
Pride
We take pride in providing high-value
products and services.

Challenge

Teamwork

We accept the challenge of going beyond
what others are doing in pursuing ourgoal of becoming number one globally.

We respect each other’s individuality
and place a high priority on teamwork.

Ownership

Awareness

We will keep ownership in mind as we think
We must have awareness of and accept
things through, and engage in thoroughresponsibility for our behavior as
implementation in order to achieve our goals. respectful members of society.

35

TEL Eco-Life Painting and Photo Contest
The Tokyo Electron Group held the TEL Eco-Life Painting and Photo Contest from
July to September 2012 as part of its activities to raise environmental awareness.
We received a host of entries from overseas and Japan.

Spring in Japan(Japan)A Day of Bees

(South Korea)

Glittering Terraced Paddy Fields (Japan)

Sweet Swans(Italy)An Egret’s Breakfast

A Circle of Ecology, A Circle of Friends(Japan)Corporate Environment Promotion Department
2-30-7 Sumiyoshi-cho, Fuchu City
Tokyo 183-8705, Japan
Tel: +81-42-333-8050 Fax: +81-42-333-8477
http://www.tel.com(Japan)A Resting Place(China)Four Seasons(South Korea)

Where is the water(Taiwan)

A Snail’s Breakfast(South Korea)

The Bee and the Edelweiss(Italy)Rainbow-colored Dragonflies (Japan)

We use green power*(Biomass, 1,000kWh) inprinting and the bookbinding
process of this CSR report.

* Green power has generated by power
plants of Solar, Wind, Small Hydro,
Geothermal and Biomass.

The main body of this report (pages 3 to 34) was
printed on paper made from trees thinned fromforests as part of forest invigoration efforts.

PR50-279

A — (2)— 060002

This report was printed using
environmentally-friendly
vegetable oil ink.

Published: November 2012