TOKYO ELECTRON ANNUAL REPORT 2017

PAGE

10

CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Interview with the CEO
Message from the CFO

Messages from the Outside Directors
Corporate Governance
Message from the Chairman of the Board
Directors, Audit & Supervisory Board Members and Executive Officers
CSR-Oriented Operations

Review of Operations
and Business Outlook

Messages from the Outside Audit & Supervisory Board Members

Message from the Chairman of the Board

Effective Governanceto Win Among
Global Competition
Creating and maintaining an appropriate system of governance is key to sustaining and maximizing the growth ofshareholder value over the short, medium and long term. I believe that optimal corporate governance entails thecreation of an environment in which all discussions and decision-making processes related to management policy
and business strategy are designed to contribute to shareholder value. Moreover, the implementation of such policy
and strategy should be monitored to provide feedback and feed-forward. Of course, it goes without saying thatgovernance systems must also ensure compliance with the laws of relevant countries as well as globally acceptable
standards of fairness and transparency.
In line with this basic approach, Tokyo Electron’s Board of Directors is composed of three types of directors,
namely outside directors, non-executive directors and executive directors. In addition, Tokyo Electron has an Audit& Supervisory Board, which audits the appropriateness and fairness of the executive directors’ decision-making­processes and business execution, as well as the auditing methods and results of the independent auditors. The
Audit & Supervisory Board currently has five members, three of whom are outside members. The composition of
the Board of Directors enables aggressive management—allowing appropriate risk taking in order to increase­corporate value—as well as effective defensive governance by monitoring the risks being taken.
Tokyo Electron has also voluntarily established a Nomination Committee and Compensation Committee within
the Board of Directors. The guidelines and policies that guide the activities of these committees are thoroughly­discussed by the Board of Directors. Furthermore, in fiscal 2017, we further enhanced our existing succession­program to groom candidates for the CEO and other top management positions.
Over the past few years, many Japanese companies have adopted measures to comply with the Corporate
Governance Code. This has propelled governance in the country as a whole to a new level of thoroughness. Globally,
however, we are seeing continued efforts to make governance even stronger, such as stepping up board diversity or
bolstering the number of outside directors and effective use of their perspectives. For Tokyo Electron to sustainably
grow in the semiconductor and electronics industries, it is extremely important to pursue diversity among bothinternal and external directors while also ensuring the selection of directors who are best equipped to contribute tocorporate growth and shareholder value. As chairman of the board, I will continue working to ensure that Tokyo
Electron’s governance system helps increase shareholder value and that the Board of Directors operates effectively.

Tetsuo Tsuneishi
Chairman of the Board

Corporate Governance
CSR-Oriented Operations

Financial Section

Corporate DataTOKYO ELECTRON ANNUAL REPORT 2017

PAGE

11

CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Interview with the CEO
Message from the CFO

Review of Operations
and Business Outlook

Message from the Chairman of the Board
Messages from the Outside Directors
Corporate Governance
CSR-Oriented Operations
Directors, Audit & Supervisory Board Members and Executive Officers

Corporate Governance
CSR-Oriented Operations

Financial Section

Corporate Data

Messages from the Outside Audit & Supervisory Board Members

Corporate Governance
Basic stanceIn an environment where over 80% of our sales come fromoverseas, Tokyo Electron regards maintaining governance as
essential to becoming a truly global company that achieves
sustainable growth.
To that end, Tokyo Electron strives to build frameworks
to maximize the use of its worldwide resources. In addition
to strengthening its management platform and technology
base, the Company maintains a governance structure thatwill enable it to attain world-class profitability.
Tokyo Electron uses the Audit & Supervisory Board
System, which consists of a Board of Directors and an Audit& Supervisory Board. Effective governance is achieved
based on the supervision of management by the Audit &Supervisory Board.

Board of Directors
1. Roles and responsibilities of the Board of Directors
The Board of Directors works to achieve sustainable growthand increase corporate value over the medium to long term
based on its fiduciary responsibility to shareholders. The roles
and responsibilities of the Board of Directors are as follows:(1) Establishing management strategy and vision(2) Making major operational decisions based on strategic direction(3) Engaging in constructive, open-minded debate

The Board of Directors seeks the active participation of
those present in discussions in order to obtain a wide range
of opinions, and supervises management and operational
execution based on active debate.
The Board of Directors respects minority or opposing
viewpoints, including opinions voiced by outside directors;
revises the conditions for implementation or the content ofproposals as necessary; and engages in extensive debatewith the goal of reaching decisions based on consensus.
However, emphasis is placed on making necessary decisions
quickly to avoid missing opportunities.
2. Board size and independent outside directors
Tokyo Electron considers it essential to maintain a Board of
Directors with the appropriate size to ensure high quality,
active debate and the diversity expected of both executive
directors and independent directors. The current Board of
Directors consists of 12 directors, and Tokyo Electron believes
this to be the appropriate size, at present, to achieve a goodbalance in terms of knowledge, experience and skills.
Tokyo Electron regards the active expression of opinions,
not only by independent directors, but also by Audit &Supervisory Board Members, as the cornerstone that supports the sound decision making of the Board of Directors.
Currently, five out of the 17 participants in the Board of
Directors meetings, including the Audit & Supervisory Board
Members, are outside members, consisting of two independent directors and three outside Audit & Supervisory Board

Does Tokyo Electron have these major components of corporate governance?
Compensation Committee

Yes

Composed of directors, including outside directors
and excluding representative directors, or
Audit & Supervisory Board Members

Nomination Committee

Yes

Composed of directors, excluding the CEO, or
Audit & Supervisory Board Members

Outside directors

Yes

Two of the 12 directors are outside directors

Outside Audit & Supervisory Board Members

Yes

Three of the five Audit & Supervisory Board Members
are outside Audit & Supervisory Board Members

Executive officer system

Yes

Disclosure of individual remuneration of representative directors

Yes

Performance-linked compensation system

Yes

Stock options system

Yes

Retirement allowance system for executives

NoAnti-takeover measures

No

Disclosed since 1999

Does not apply to outside directors andAudit & Supervisory Board Members

Members. Tokyo Electron believes that the current Board of
Directors meetings achieve an appropriate sense of productive
tension and constructive debate due to the combined presenceof executive directors, essential for making operational
decisions, and outside members, who provide objectivity.
3. Nominations for Director and CEO
Tokyo Electron has established a Nomination Committee toensure fairness and efficiency in management. The
Nomination Committee proposes director candidates to theBoard of Directors prior to their election at the General
Meeting of Shareholders and also nominates CEO candidates for appointment by the Board of Directors. The CEO is
not part of the Nomination Committee, and the authority
to propose the election or dismissal of the CEO or directors
is entrusted to the Nomination Committee.
4. Director and CEO compensation
Aiming to strengthen its global competitiveness andincrease management transparency, Tokyo Electron has
adopted a director and executive officer compensation system that is closely linked to performance and shareholder
value. The compensation of directors and executive officers
comprises a fixed monthly wage and an annual performance-linked bonus.
The Compensation Committee, which comprises three ormore directors and includes at least one outside director,
conducts an analysis of industry wage levels in and outside
Japan, accounting for both monetary and non-monetary
aspects of the total compensation package. Based on thiscomprehensive analysis, the committee proposes a policy
and system for the compensation of the Board of Directors
and executive officers as well as individual compensation
amounts, including bonuses, for the CEO and the representative directors.
In order to better link factors that increase corporate
value and shareholder value to compensation, Tokyo
Electron has designated the net income attributable toowners of the parent and return on equity (ROE) for thecurrent period as the main calculation benchmarks in theperformance-linked compensation system for the CEO andother directors. These are adjusted, as necessary, forextraordinary income/losses and other special factors.

In principle, performance-linked compensation consistsof monetary compensation and share-based compensation;
the ratio of these two components is roughly 1:1 for directors, and single year performance is appropriately reflectedin the performance-linked compensation of the CEO andother directors. Share-based compensation is awarded in
the form of stock options with the exercise price set at one
yen per share, and a three-year vesting period from thedate of allotment before the options may be exercised.
5. Evaluation of the effectiveness of the Board of Directors
Each year, based on an evaluation survey filled out by the
Board of Directors and Audit & Supervisory Board Members,
the Board of the Directors analyzes and evaluates its own
effectiveness through discussions, mainly involving the outside directors and outside Audit & Supervisory Board
Members, as well as separate discussions involving theentire Board of Directors. The board then discloses a summary of the results.
Tokyo Electron’s Board of Directors receives regular
reports from the CEO and other executive directors anddesignates issues for discussion at each board meeting. The
directors and Audit & Supervisory Board Members actively
discuss these reports and issues based on their diverse
viewpoints and experiences. Meeting participants exchange
opinions in an open, unrestrained manner and engage inreal debate. As a benefit of this thorough discussion, proposals made by executive members may subsequently beamended to reflect the opinions of outside directors andAudit & Supervisory Board Members prior to passage. Tokyo
Electron thus believes that its Board of Directors is able tocarry out its role appropriately and function effectively.
Based on the insights gleaned from the most recent evaluation, Tokyo Electron is working to make the Board of
Directors even more effective. Priorities include expandingtime allotted for the discussion of issues related to Group
policy and strategy, including major management issues
and medium- to long-term management and growth strategies, as well as enhancing opportunities for dialog with theoutside directors and outside Audit & Supervisory Board
Members. Furthermore, the Board of Directors will continue
to discuss and examine its own operation and composition,
including questions of diversity.

TOKYO ELECTRON ANNUAL REPORT 2017

PAGE

12

CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Interview with the CEO
Message from the CFO

Review of Operations
and Business Outlook

Message from the Chairman of the Board
Corporate Governance
Messages from the Outside Directors
CSR-Oriented Operations
Directors, Audit & Supervisory Board Members and Executive Officers

Corporate Governance
CSR-Oriented Operations

Corporate Data

Financial Section

Messages from the Outside Audit & Supervisory Board Members

Messages from the Outside Directors

Outside Director

Outside Director

Hiroshi Inoue

Charles Ditmars Lake

Currently serving as honorary chairman andServing as chairman and representative in

director and previously as chairman of TokyoJapan of American Family Life Assurance

Broadcasting System Holdings, Inc., Mr. Inoue

Company of Columbus, and also as president

possesses a wealth of experience and insightof Aflac International, Incorporated, Mr. Lakein corporate management.

has a great deal of experience and knowledge in corporate management bridging
Japan and the United States.

Tokyo Electron should be very proud of its excellent

As the internet of things (IoT) expands, the semi-

Heightened economic uncertainty has led to an

I have been engaged in active and meaningfulconductor industry is undergoing major structural

increasingly challenging global business environ-­discussions with internal directors, Audit &change, making it very difficult to predict demand.

ment amid factors including geopolitical turmoil,

Supervisory Board Members, and outside directors

try is subject to major market ups and downs.

To continue to thrive in this market, I believe Tokyo

critical elections in Europe, and the anti-globalist

on important business matters related to medium-

I greatly admire the work of President Kawai, theElectron will have to achieve qualitative change inchallenge to the Bretton Woods system. Against

to long-term human capital development andrest of Company’s executives and its employees,

how it interacts with customers. The foundation

this backdrop, and as stakeholder expectations con-

exploring initiatives to take corporate governancewhich has successfully secured a solid foothold forunderpinning this, however, is still the ongoing rein-tinue to evolve, this is an era in which robust corpo-

systems to the next level. In order to fulfill myTokyo Electron in this volatile environment.

forcement of Tokyo Electron’s technological superi-

rate governance is more critical than ever for global

duties as an independent outside director, based onority and excellent reputation. I am confident that,businesses to continue to achieve sustainable growth.

Tokyo Electron’s basic policy, I will strive to proac-

Tokyo Electron was an early adopter of corporate

tively raise issues from an objective and profession-

performance in fiscal 2017.
The semiconductor production equipment indus-

These achievements are, I think, the fruit of theunited efforts of the entire Company since thethrough the steady application of such efforts,

merger with Applied Materials was called off two

Tokyo Electron will ultimately increase its corporate

governance systems consistent with global best

al standpoint. Looking back on the activities of theyears ago. At the same time, it is clear to me thatvalue and remain a leader in the semiconductor

practices. Indeed, as Japan moves toward a major

past year, I am convinced that Tokyo Electron’s cor-the foundation for these results is the outstanding

industry as the industry continues to expand.

turning point in its corporate governance environ-

porate governance system is substantially effective
in both form and function.

technological prowess and relationships of trust

I look forward to seeing where Tokyo Electron isment, Tokyo Electron has continued to set anwith customers that Tokyo Electron has built up

going next, and I will do my utmost to help it get there.

example, earning it a strong reputation among

since its founding.

market participants.

In fulfilling my duties as an independent outside
director, I will continue working to contribute to theLast year, I began my role as an independent out-development of an even stronger corporate gover-side director, wanting to play a part, however small,nance system, underpinning a new start for Tokyo

in further enhancing Tokyo Electron’s corporate

Electron to become a truly global company.

value. Since then, both in and out of Board meetings,

TOKYO ELECTRON ANNUAL REPORT 2017

PAGE

13

CONTENTS

Business Overview
and Financial Highlights

To Our Stakeholders

Interview with the CEO
Message from the CFO

Review of Operations
and Business Outlook

Message from the Chairman of the Board
Messages from the Outside Directors
Corporate Governance
CSR-Oriented Operations
Directors, Audit & Supervisory Board Members and Executive Officers

Corporate Governance
CSR-Oriented Operations

Financial Section

Corporate Data

Messages from the Outside Audit & Supervisory Board Members

Messages from the Outside Audit & Supervisory Board Members
Audit & Supervisory Board
The Audit & Supervisory Board currently consists of fivemembers and includes three outside Audit & Supervisory
Board Members. Two members are full-time. The full-time
Audit & Supervisory Board Members collect information
through onsite surveys, and the board maintains appropriate coordination with the Internal Audit Department andthe independent auditors as part of a structure that enables
Audit & Supervisory Board Members to obtain all information necessary for audits.
Moreover, the composition of Audit & Supervisory Board
Members provides a good balance of knowledge requiredfor operational audits and accounting audits, including
financial and accounting knowledge, legal knowledge, andaudit experience at other companies. Tokyo Electron thus
believes its Audit & Supervisory Board Members are able toperform their auditing functions effectively.

Internal Control System and Risk Management
Basic StanceIn order to enhance the Tokyo Electron Group’s corporate
value and remain accountable for our actions to our stakeholders, we are making efforts to strengthen effective internal control. This involves implementing practical measuresthat are in line with the Fundamental Policies concerning

Internal Controls within the Tokyo Electron Group, set out by
Tokyo Electron’s Board of Directors. We are also annually
evaluating our internal control over financial reporting basedon the Financial Instruments and Exchange Act of Japan.
Risk Management System
To more effectively strengthen the internal control and risk
management systems of the entire Group, Tokyo Electron
has established a dedicated risk management and internal
control function within the General Affairs Department of
the corporate headquarters. This function analyzes the risks
faced by the Group and identifies material risks. It thenmonitors the management of such risks while supportingand implementing risk management activities. The function
also regularly reports the status of risk management activities to the Audit & Supervisory Board Members and theBoard of Directors.
In fiscal 2017, the Group reassessed the material risks in
its operating environment. For each risk determined to bematerial, the status of risk management at the responsible
divisions was reconfirmed. Going forward, the Group willcontinue these initiatives to enhance the efficacy of its risk
management framework.
Auditing by the Internal Audit Department
The Global Audit Center of the corporate headquarters is
the Group’s internal audit department. This Center is

Corporate Governance Framework, Internal Control System and Risk Management System
Shareholders' Meeting
Compensation Committee

Board of Directors Nomination Committee

Request for improvement/Report

Chief Business Ethics Director
Chief Internal Control Director
Chief CSR Promotion Director

Confirm the progress ofimprovements and give instructions

CSS & Executive Officers

Internal Audit Dept.
(Global Audit Center)

Ethics Committee
Information Security Committee
Export Trade Control Committee
Request for improvement/Report

Audit

Risk Management & Internal Control Function(General Affairs Dept.)
Request for improvement/Report

Check and balance

Business Depts.

Business Continuity Plans (BCPs)
The Tokyo Electron Group began building business continuity plans in 2003. After the Great East Japan Earthquake, theGroup rebuilt these plans to be more effective and include
provisions for restoring operations after crises, focusing on
major business sites. As examples of specific initiatives, theGroup has put considerable effort into such preparations fordisasters as stockpiling emergency supplies (including foodand drinking water), reinforcing essential infrastructure,rebuilding the safety confirmation system, creating manuals, and implementing drills and employee training.

Message fromthe Outside Audit &Supervisory Board Member
Outside Audit & Supervisory Board Member

Takatoshi Yamamoto
Mr. Yamamoto has extensive experience as a securities analyst
covering the electronics industry as well as expert knowledge of global finance and accounting. He is concurrently
serving as an outside director at Hitachi, Ltd.

I have now served as an outside Audit & Supervisory Board

efficiency, the numerical targets of the medium-term manage-

Member for four years, beginning in 2013. The initial two year

ment plan, and new measures to return profits in order to raise

period was marked by work toward the planned merger withshareholder value. The board continues to strive to reflect these

Applied Materials. The next two years, after the merger was

discussions in business execution and ensure the effective

called off, have been focused on charting a new course foroversight and monitoring of the resulting developments.

Tokyo Electron. During these four years, the importance ofAs global business prospects expand, opportunities to growstrengthening corporate governance has been the subject ofTokyo Electron’s profitability and corporate value to world-classmuch discussion across Japan, including questions related tolevels through the effective combination of such aggressive

earnings power, the sustained improvement of corporate value

management and careful oversight are emerging. As an outsideand effective institutional design. These crucial issues have also

Audit & Supervisory Board Member, I will strive to remain high-received careful consideration at Tokyo Electron as thely alert, diligently analyzing risks in and outside the Group from

Company marked a new beginning, aiming to maintain aan objective standpoint. I will work to increase the overall

healthy sense of urgency while evolving into a truly global

effectiveness of audits through a three-pronged approach, incompany that boasts world-class profitability.

conjunction with the Internal Audit Department and account-

Tokyo Electron has been able to do this thanks to its highly

ing auditors, and provide oversight and monitoring to ensure

effective Board of Directors. The board has vigorously debatedproper corporate behavior. I believe that doing these things issubjects including lessons learned from the merger process,the key to meeting the expectations of shareholders andtechnological innovation in semiconductor production, theother stakeholders.

development of new technologies and products, operational

Monitoring

Administrative Depts.

Cooperate

Audit and
improvement reports

Request for improvement/Report

CSR Management Council
CSR Global Promotion Committee

Independent Auditors
Cooperate

Representative Directors

Compliance & Internal Control Executive Officer
CSR Promotion Executive Officer
Committees

Audit & Supervisory Board

responsible for auditing business activities, compliance andsystems at domestic and overseas Group companies andbusiness units (BUs) in accordance with each fiscal year’s
auditing plan. The Center also annually evaluates the effectiveness of the Group’s internal control over financial
reporting based on the Financial Instruments and Exchange
Act of Japan.
At operating divisions where issues have been identified
through audits and assessments, the Center monitors progress and provides necessary guidance for improvement.

TOKYO ELECTRON ANNUAL REPORT 2017

PAGE

14

CONTENTS

To Our Stakeholders

Business Overview
and Financial Highlights

Interview with the CEO
Message from the CFO

Review of Operations
and Business Outlook

Message from the Chairman of the Board
Messages from the Outside Directors
Corporate Governance
CSR-Oriented Operations
Directors, Audit & Supervisory Board Members and Executive Officers

Corporate Governance
CSR-Oriented Operations

Financial Section

Corporate Data

Messages from the Outside Audit & Supervisory Board Members

Messages from the Outside Audit & Supervisory Board Members
Furthermore, to meet its responsibilities as an equipment
manufacturer, the Group pursues ongoing efforts toimprove its BCPs, including taking steps to facilitate earlyrecovery and alternate production.
When the Kumamoto Earthquake struck in April 2016, theGroup was able to respond with speed and precision basedon the BCP it had prepared.
Information Security Management
To ensure the appropriate management of information
assets, the Group has an information management framework centered on its Information Security Committee,
which is composed of representatives from departments
across the Group.
The Information Security Committee acts as a decisionmaking body for the Group. Rules concerning the handlingand protection of such sensitive information as trade secrets
and personal information are formulated based on thecommittee’s policy and applied throughout the Group. An
e-learning system is used to educate and promote awareness of these rules among Group employees and executives.
Additionally, the Group has a reporting system for bothactual and potential cases (incidents) of information leakage. Reported incidents are quickly settled and then analyzed. Based on such analyses, recurrence prevention
measures are implemented throughout the Group.
In order to mitigate emerging cyber security threats, theGroup examines and undertakes rational countermeasures
as necessary. The Group also has in place systems to detecttargeted threats that utilize social engineering as well as asupervisory framework to prevent damage.

Business Ethics and Compliance
Basic Stance
Stakeholder trust is the cornerstone of business activities. In
order to maintain trust, it is necessary to continuously act inrigorous conformity to business ethics and compliance. Inline with the Fundamental Policies concerning Internal
Controls within the Tokyo Electron Group, all Group executives and employees are required to maintain high standardsof ethics and to act with a clear awareness of compliance.
Business Ethics
In 1998, Tokyo Electron formulated the Code of Ethics of theTokyo Electron Group as a set of uniform standards to govern

all of its global business activities. In the same year, theCompany appointed a Chief Business Ethics Director andestablished the Ethics Committee, which is responsible forpromoting business ethics awareness throughout the Tokyo
Electron Group. The Ethics Committee comprises the Chief
Business Ethics Director, the Ethics Committee Chairman,
and presidents of major Group companies in and outside
Japan. The members meet semiannually, report on ethicsrelated issues facing each company, and discuss measures
to further improve ethical behavior and compliance.
The Code of Ethics is reviewed in response to changes in the
expectations of society. In January 2015, an anti-corruption
statement was added to its introduction based on Principle
10 of the UN Global Compact, which concerns working
against corruption including extortion and bribery. In August
2016, the Group revised the Code of Ethics in light of theCode of Conduct of the EICC®* and broader social changes.
The Tokyo Electron Group’s Code of Ethics and its Q&A
section are published in Japanese, English, Korean andChinese and disclosed on the intranet to enable all Group
executives and employees, including those overseas, toview them at any time. The Code of Ethics is also publicly
accessible from the corporate website.
http://www.tel.com/ir/policy/compliance/ethical.htm* EICC is a registered trademark of Electronic Industry Citizenship Coalition Incorporated.

Compliance System
Tokyo Electron has appointed a Compliance & Internal
Control Executive Officer from among its executive officers
to raise awareness of compliance across the Group and further improve Group-wide compliance. Each Group company
has also drawn up its own compliance regulations, settingout basic compliance-related requirements in line with theCode of Ethics. The compliance regulations are intended toensure that all individuals who take part in the businessactivities of the Tokyo Electron Group clearly understandthe pertinent laws and regulations, international standards
and internal company rules, and consistently apply theserules in all of their activities.
Compliance Education
Through the Group’s e-learning system, we provide web-based
training programs covering the basics of compliance, exportrelated compliance, protection of personal information, the Act
for Subcontracting and other topics. All executives andemployees are required to complete these programs. In
addition, other web-based programs tailored to specific positions and job roles are also available, including those on insider trading and the Social Security and Tax Number System.
We also have a quiz-based business ethics and compliance education course, launched in fiscal 2014, for all Group
executives and employees. Updated yearly, the quiz is
intended to maintain compliance awareness throughout
the Group and disseminate the latest information.
In addition to these web-based courses, we organized inhouse seminars in fiscal 2017 for Corporate Directors andexecutive officers on the subjects of compliance and internal control.

Internal Reporting System
The Tokyo Electron Group has an internal reporting systemthat employees can use to report any activity suspected ofbeing in breach of laws, regulations or business ethics. An
ethics hotline and a compliance hotline have been established to receive reports from all Group companies, andeach overseas location also has its own reporting system. In
all instances, the system ensures that whistleblowers
remain anonymous and are protected from any disadvantage or repercussions.
There were no reports or cases of non-compliance withlaws, regulations, or principles of ethics in fiscal 2017 that
could have had a material impact on the Group’s businessor local communities.

Message fromthe Outside Audit &Supervisory Board Member
Outside Audit & Supervisory Board Member

Ryuji Sakai
Serving as a partner at Nagashima Ohno & Tsunematsu,
Mr. Sakai possesses abundant experience and expert
knowledge as an attorney at law specializing in the
Companies Act, M&A, and international transactions.

One of Tokyo Electron’s defining strengths is the way the

At the same time, management must be willing to take bold

Company brings together insights derived from front-line

risks when necessary. It is also extremely important to proac-

experience to drive business development, unleashing the max-

tively work to meet the expectations that exist for a global

imum benefits of long-standing Japanese manufacturing prac-company such as Tokyo Electron, including further enhancing

tices. Tokyo Electron is deeply committed to the semiconductor

compliance frameworks and employee diversity.

industry. With the arrival of the internet of things (IoT), thisFortunately, Tokyo Electron’s leadership is comprised ofindustry has been undergoing dramatic development. Going

ambitious, flexibly thinking individuals. The Board of Directors

forward, within this industry, the role that Tokyo Electron

freely engages in open and vigorous discussion, and theplays—as well as the business opportunities available to it—

Company is set up to facilitate the aggressive management

will only grow.

decision making necessary for growth. I will continue to carry

Given this environment, to meet shareholder expectations byout my duties as an Audit & Supervisory Board Member, partic-

continuously expanding corporate value, Tokyo Electron must

ularly in the area of defensive governance. By doing so, I hopemake full use of its strengths as a representative of Japanese

to contribute to Tokyo Electron’s ongoing growth.

manufacturing with an outstanding customer reputation.