Lasertec’s TCFD Disclosure
Policy on Climate Change
Lasertec is actively engaged in efforts to address the growing challenge of global warming and otherenvironmental issues as part of its efforts to contribute to solving social issues through business activities. Basedon the framework recommended by Task Force on Climate-related Financial Disclosures (TCFD), we analyze
our climate change-related risks and opportunities and strive for risk mitigation and opportunity expansion while
proactively making disclosures.

Governance
Our Board of Directors monitors the status of our ESG and climate change-related initiatives by receiving reports
periodically. Our Corporate Planning Department is the secretariat responsible for administering these initiatives,
making necessary coordination among our group companies, and formulating future policies.

Board of Directors
ReportMonitorSustainability Initiative Administration Team[ Role ]•Formulating group-wide sustainability policies including TCFD initiatives•

Deliberating on and promoting initiatives and tracking progress[ Secretariat ]•Corporate Planning Department

ReportShare & Advise

Departments and Group Companies

Strategy: Analysis Targets and Methodology
We conducted a scenario analysis focused on the semiconductor-related equipment market and estimated its
state as of 2030. We identified risks and opportunities, looked at changes in society and their potential impact on
our business, and examined what actions we should take to mitigate these risks and impacts. The scenarios usedwere a 1.5℃ scenario, where global efforts to achieve a carbon-neutrality will be made, and a 4℃ scenario, where
the physical risks of climate change will materialize because no climate-related measures are taken. We predictedhow society would change in each of these scenarios while referring to the scenarios created by variousorganizations and panels and used this information to analyze the financial impacts of climate change on ourbusiness.

Scenarios
Scenario

Summary

Main references

1.5℃ Scenario

 This scenario assumes that countries around the world will

IEA World Energy Outlook

advance their climate-related policies and regulations beyond

2021.

those of the 2°C scenario by pushing to achieve net-zero CO2

Sustainable Development

emissions by 2050 and taking other measures to suppress

Scenario / Net Zeroglobal warming and keep the average temperature to less

Emissions by 2050

than 1.5°C above pre-industrial revolution levels. People willScenario

have a significantly higher level of awareness about



IPCC SSP1-1.9



IEA World Energy Outlook

environmental issues and climate change than the current
level.
4℃ Scenario

 This scenario assumes that countries around the world will
only take environmental policies already in place or

2021. Stated policies

announced, a weak response compared to the 1.5°C andScenario

2°C scenarios. CO2 emissions are likely to increase in theforeseeable future, and public awareness of environmental
issues and climate change will remain unchanged fromtoday.

IPCC SSP5-8.5

Strategy: Major Risks and Opportunities
We used the framework of risk and opportunity analysis provided in the TCFD recommendations to examine theclimate change-related risks and opportunities in the semiconductor-related equipment market and identified thosethat are likely to have a significant impact on our business.

Major Risks and Opportunities in the 1.5℃ Scenario

CategoryRisks

ItemImpact

Transition

Policy andIncreased pricing ofThe introduction of carbon taxes would

Risks

Legal

GHG emissions

increase fuel-related expenses.

Enhanced emissions-

If Scope 3 emission reporting becomes

reporting obligations

mandatory, it would increase personnel,
outsourcing and other expenses associatedwith data gathering and analysis.

TechnologyMarket

Unsuccessful

If our efforts to launch new products fail, weinvestment in new

would lose market share to competitors andtechnologies

incur a significant loss.

Changing customer

If we are unable to respond to changes inbehavior

customer need properly, for example, to meetincreased demand for energy-efficient
products, the impact on our business would
be significant.

Opportunities Products and ServiceServices

Increased cost of raw

A higher cost of raw materials would impact

materials

our profits.

Development and/or

If we continue to develop new products

Development expansion of low

including EUV mask inspection systems,

emission goods andwhich are used for leading-edge

services

semiconductor production, and SiC wafer
inspection systems, which contribute toenergy efficiency improvement, our profits
would increase.

Innovation

Development of new

If we keep searching for new customer needs

products or services

and developing new products to meet them,through R&D and

our profits would increase.

innovation
Consumer

Changing consumer

Behavior

behavior

Major Risks and Opportunities in the 4℃ Scenario

Category
Risks

Item
Transition

TechnologyRisks

ImpactUnsuccessful investment

If our efforts to launch new products fail,in new technologies

we would lose market share tocompetitors and incur a significant loss.

MarketPhysical Risks Acute

Increased cost of raw

A higher cost of raw materials wouldmaterials

impact our profits.

Increased severity ofThe suspension of business activities due

extreme weather events

to transportation and supply chain

such as typhoons anddisruptions would cause profits to decline.

floodsIf we are unable to maintain workforce,
our ability to provide products andservices would decline.

Chronic

Changes in precipitation

The cost of air-conditioning forpatterns and extreme

cleanrooms and others would rise.

variability in weather
patterns
Opportunities Products and Service
Services

Development

Development and/or

If we continue to develop new products

expansion of low

including EUV mask inspection systems,

emission goods andwhich are used for leading-edge

services

semiconductor production, and SiC wafer
inspection systems, which contribute toenergy efficiency improvement, our profitswould increase.

Innovation

Development of newIf we keep searching for new customer

products or services

needs and developing new products tothrough R&D andmeet them, our profits would increase.

innovation
Consumer

Changing consumer

Behavior

behavior

Strategy: Examining Changes in Society and Measures to Take
The 1.5℃ Scenario
In this scenario, we expect that we would be able to capture opportunities from the market growth of leadingedge semiconductor and power semiconductor-related systems, but we also anticipate that the costs of GHG
emissions, raw materials, and energy would increase.
As our measures to take in this scenario, we would reduce GHG emissions by replacing the air-conditioning
systems in our cleanrooms and using electricity from renewable energy sources and would reduce our raw
material costs by simplifying and downsizing our products to address transition risks. We would also strive tooffer added value and expand market share through new product development.
We expect that we would be able to mitigate the impacts of transition risks on our business and capture newopportunities by taking these measures.

1.5℃ Scenario: Changes in Society and Measures to Take
Positive Impact

External Environmental
Changes in 2030

Governmental

Stricter regulation andtaxation of GHG
emissionsCustomerHigh demand for energyefficient,environmentally-friendlyproducts and services

Procurement

Increases in the cost of
raw materials andenergy

Impacts on our Business

Negative Impact

Financial Impacts in 2030
Measures

Items

Financial Impacts

Increased cost ofGHG emissions

Carbon prices

Increased cost of GHG
emissionsReplace the HVAC systems in ourcleanrooms

Stricter GHG
reporting obligations

GHG reportingobligations

Increased personnel
and outsourcing costs
for reports andcalculations

Use electricity generated from renewableenergy sources

Decline in demandfor existing products

Market size ofsemiconductor
inspection systems
and our market
share

Decreased sales due
to smaller market ofexisting products

Strengthen our internal systems andaccumulate expertise for reporting andcalculations

Increased sales due tohigher demand forinspection systems

Develop new products and services

Increased component
manufacturing costs

Reduce raw material use by shrinking or
simplifying our products

Increased facility
operation costs

Create high value-added products

Risks

Increasedcomponent
manufacturing costs
and facility operationcosts

Opportunities

Increased demand
for leading-edge
semiconductor andpower
semiconductorrelated inspection
systems

Price of raw
materials

Price of energy

1.5℃ Scenario: Expected Financial Impacts

Opportunities
CapturedMarket GrowthTransition Risks

Expected Profit

Measures against
Transition Risk

Profit if no actions are takenProfit if actions are taken

The 4℃ Scenario
In this scenario, we anticipate financial impacts from transition risks due to increased costs of raw materials andenergy and from physical risks such as increased repair costs as a result of damage caused by natural disasters
and decreased sales due to suspended business activities.
As our measures to take in this scenario, we would simplify and downsize our products to lower raw material
costs, promote modal shifts to reduce transportation costs, and strengthen our business continuity measures. Asour measures against physical risks, we would decentralize our manufacturing locations, establish a new R&D
and manufacturing facility to supplement the functions of our headquarters, and enhance our measures againstflooding. We would also strive to expand our market share by developing new products.
We expect that we would be able to mitigate the impacts of transition risks and physical risks on our businessand capture new business opportunities by taking these measures.
We will continue to monitor changes in the environment and update/expand our quantitative analyses asnecessary to enhance our resilience to climate change and offer value that fits those changes.

Major Risks and Opportunities in the 4℃ Scenario
Positive Impact

External Environmental
Changes in 2030

Environmental

Growing severity of
extreme weather events
such as typhoons andfloods

Customer

Increased investment intechnologies to adapt tochanges in theenvironment

Procurement

Increases in the cost of
raw materials and energy

Impacts on our Business

Negative Impact

Financial Impacts in 2030
Measures

Risks

Opportunities

Supply chain
disruptions

Expansion of leadingedge semiconductor
applications andincreased demand forinspection systems

Financial Impacts
Decrease sales due
to a suspension in
supplying products

Decentralize manufacturing locations

Decreased sales
due to a suspension
in providing services

Establish a new R&D and manufacturing
facility to supplement the functions of
headquarters

Increased repair
costs due toequipment damage

Enhance measures against flooding

Increased sales due
to higher demand forinspection systems

Develop new products and services

Raw material costs

Increasedcomponent
manufacturing costs

Reduce raw material use by shrinking or
simplifying productsFuel costs

Increased productdelivery costs

Promote modal shifts

Frequency andseverity of extreme
weather events

Damage toequipment or injury
to staff

Increasedcomponent
manufacturing costs
and product deliverycosts

Items

Market size ofsemiconductor
inspection systems
and our market
share

4℃ Scenario: Expected Financial Impacts

Transition Risks

Expected Profit

Physical Risks

MeasuresagainstTransitionRisks

Profit if no actions are taken

MeasuresagainstPhysicalRisk

Opportunities
CapturedProfit if actions are taken

Risk Management
We assess the various risks to the continuation of our business, identify the impacts they would have in the event
they occur, and formulate appropriate responses and preparations for each. We assign a person with the task of
implementing the necessary preparations and measures for each risk category. We conduct periodic reviews ofthese and make updates and improvements to our business continuation plan (BCP) to ensure that, even if anyof the risks materialize, we can minimize the impacts on our business operations and continue to meet theobligations that we have to our customers.

Metrics and Targets
We calculate the Scope 1 and Scope 2 GHG emissions of our headquarters and make this information publicly
available on our website. The results show a continuous year-on-year decline in the intensity of our GHG emissions
per revenue from FY2018 to FY2021.
We will establish metrics and targets in line with our strategy and risk management and take action to achieve
them based on the result of our scenario analysis.