CSR goals and results

1 Number of training sessions attended per person in fiscal year 2019 was revised from 11.6 down to 9.4 due to changes to theindicator by the inclusion of non-regular employees
2 An indication of the risk of lifestyle diseases in years, based on the results of health checkups
3 TEL uses the Audit & Supervisory Board System
4 At least one third of directors are outside directors
5 GRC: Governance, risk management, and compliance
6 Per-unit basis: Calculated using complex weighting of the number of developed evaluation machines, units produced, floorarea, and labor-hours for each district

FY2020

FY2021

Material issues

Priority themes

Annual goals


Tackling technologicalinnovation

Product
competitivenessEnvironmental
contribution ofproducts

Ensure that 20% or more (three-year moving average)of all equipment models are new products for next
generation technologies
Maintain the previous year’s global patent application
rate

Reduce per-wafer emissions of CO2 by 20% by fiscal
year 2025 (as compared with fiscal year 2014)

ResultsResponsivenessto customers



Improvement ofcustomer satisfaction
Quality management

HigherproductivityCareer development

Work-life balance

Maintained the previous year’s rate(Achieved 81.2% in fiscal year 2019 and 79.8% in fiscal year 2020)

With growth of the logic device and foundry businesses, and resumed
investment in NAND in the second half of the fiscal year, increased usage of TEL
equipment by main customers

Increased by 6.3% from the previous fiscal year

Get 3 points (“Satisfied”) or more on 100% of customer
satisfaction survey items



Achieved 93.3% (increased by 8.9% from the previous fiscal year)

Utilize knowledge and strengths within the groupPromote and implement front-loading and traceability

Double percentage of female managers by fiscal year
2021 from 1.8% in fiscal year 2018
Increase number of training sessions attended perperson by 10% from the fiscal year 2019 level

Annual goalsReach at least 70% take-up rate of annual paid leaveReduce gap between health age2 and actual age by 1.5 points
by fiscal year 2021 (as compared with fiscal year 2018)

Ensure that the number of workplace injuries per
200,000 work hours (the total case incident rate) is
less than 0.5

Product
competitiveness

Reduced by 16% in fiscal year 2020 as compared with fiscal year 2014
(Chose roadmap and equipment models for achieving goals for each coreproduct)

Achieved 22.9%

Increase sales in field solutions business from the fiscalyear 2019 levelImprovement ofcustomer productivity/
yield

Diversity and inclusion

People andworkplaces

Increase TEL’s value to customers

Solutions that create
value for customers


Priority themes

Tackling technologicalinnovation

Material issues

Responsivenessto customers
Improvement ofcustomer satisfactionContinuous
improvement ofbusiness operations

Higherproductivity

Quality management

Improvement ofcustomer productivity/yield

Achieved 2.0% in fiscal year 2020
8.3 training sessions attended per person: Reduced by 11.7% from the previous
fiscal year¹ (Some group training sessions canceled due to the new coronavirus
disease COVID-19)

Diversity and inclusion

Achieved 72.6% (67.2% in fiscal year 2019)

Increased by 0.03 points as compared with fiscal year 2018







Health and safety

Improve on issues identified in evaluations of theeffectiveness of the Board of DirectorsExamined and confirmed TEL’s ideal organizational structure3 and composition ofdirectors4, and partial revision of its director and executive officer compensation
system, in meetings of the Board of Directors and internal committees
Finished examining revisions to the criteria for discussion by the Board ofDirectors, and establishment of a new executive committee to improve thedecision-making process of the Board of Directors, and will implement changes
from fiscal year 2021
Revised internal control systems and group company controls through a projectto enhance the risk management framework
Held offsite meetings of the Board of Directors and held discussions about mediumto long-term management strategies, and CSR and GRC5 initiatives and issuesGovernanceRisk managementComplianceManagementfoundation

Compliance

Environmentalmanagement

11

TOKYO ELECTRON SUSTAINABILITY REPORT 2020

Reduce energy consumption by 1% from the fiscal year
2019 level (per-unit basis6) at each factory or offices







Finished reorganizing internal hotline and establishing a hotline for suppliers,etc. at group companies overseas
Survey of recognition among employees concerning internal hotline was notimplemented, and will be carried over to fiscal year 2021
Revision of TEL's Code of Ethics, conduct of basic annual training, and pledges
were not implemented, and will be carried over to fiscal year 2021

Managementfoundation

Become the best andsole strategic partner

Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction
survey responses

Target a 10% improvement in operational efficiency as a medium- to long-term goal,
achieve centralized data management through adoption of a new ERP8 system, and build
a business foundation where employees can focus even more on higher value work
(1) Expand implementation of CRM9 and PLM10, and (2) adopt new ERP during fiscal year 2021

Constantly pursue
higher management
efficiency

Check the impact of important non-conformance item on other equipment andthoroughly implement recurrence prevention measures
Promote Shift Left11 (front-loading) activities for quality(1) Increase engineer time for high value work in upstream processes, and(2) Implement medium- to long-term action plans to continue to enhance quality
assurance activities
Double the percentage of female managers and experts (with same roles andresponsibilities as managers) by fiscal year 2022 from 2.0%12 in fiscal year 2019
Foster a culture of learning and development in the workplace through(1) Leader development programs, (2) provision of personalized global learning
opportunities, and (3) support for career development throughout working life

Maximize dreams
and drive

Reach at least 70% take-up rate of annual paid leave
Reduce gap between health age and actual age by 1.5 points by fiscal year 2021 (ascompared with fiscal year 2018)
Reduce the number of workplace injuries per 200,000 work hours. Target: TCIR (the totalcase incident rate) is less than 0.5.
Continue to improve on issues identified in evaluations of the effectiveness of the Boardof Directors
Promote an integrated risk management system throughout the group,(1) Adopt Control Self Assessment (CSA), and (2) establish and operate a risk management
committee
Achieve 100% recognition among employees concerning internal hotline
Revise Code of Ethics, conduct basic annual training, and achieve pledge rate of 100%
Conduct a compliance awareness survey
Reduce energy consumption by 1% from the fiscal year 2020 level (per-unit basis) at eachfactory or offices

Environmental
management

Build a managementfoundation forincreasing value

Maintain water consumption (per-unit basis) at factories and offices at the fiscal year
2012 level in Japan and at individual base year levels overseas

Achieved goal at 6 of 11 factories or officesSupply chain
management

Reorganize internal hotline and establish hotline forsuppliers, etc., at group companies overseas (ongoing)
Achieve at least, 90% recognition among employees
concerning internal hotline
Revise Code of Ethics, conduct basic annual training,
and achieve pledge rate of at least 90%

Reduce per-wafer emissions of CO2 by 20% by fiscal year 2025 (compared with fiscal year2014)

Health and safetyGovernanceAchieved 0.23

Create strong next
generation products

Increase sales-in-field solutions business by 5% or more from the fiscal year 2020 levelWork-life balance

Maintain the previous year’s global patent application rate (±10%)

Relevant
SDGs

Ensure that 20% or more (three-year moving average) of all equipment models are new
products for next generation technologies

Increase TEL’s value to customers

Career development

People andworkplaces

Medium-term goals

Solutions that create
value for customers

Decided company-wide response policy for material non-conformance mattersand expanded to relevant divisions (12 of 12 matters completed)
Front-loading
Reviewed processes for responding to nonconformities to reduce man-hours
Re-examined best practices for quality assurance activities
Traceability
Examined systems for tracking status and processes for parts

Environmental
contribution ofproducts

7 Per-unit basis: Calculated based on floor area and labor-hours, etc. for each district
8 ERP: Enterprise Resource Planning
9 CRM: Customer Relationship Management
10 PLM: Product Lifecycle Management
11 Shift Left: Refer to p. 17 and p. 31.
12 Senior specialists were included in the 2.0% figure in fiscal year 201913 BCP: Business Continuity Plan

Maintain water consumption at the fiscal year 2012 levelaccording to per-unit basis7 set at each factory or officesAchieved 9 of 13 goals

Implement supply chain CSR assessments for 80% ormore of suppliers (procurement volume basis)

Achieved 80% or more of our procurement spend

Supply chainmanagement
Implement supply chain CSR assessments for the following percentages of suppliers.
Material suppliers: Covering at least 80% of our procurement spend
Logistics suppliers: 100% of customs-related operators
Staffing suppliers: 100% of employment agencies and contracting companies (internalcontractors)
Implement supply chain BCP13 assessments for the following percentages of suppliers.
Material suppliers: Covering at least 80% of our procurement spend

TOKYO ELECTRON SUSTAINABILITY REPORT 202012