Human resource management
Human resource management system

People andworkplaces

Tokyo Electron (TEL) regularly conducts a global engagement survey which aims to enhance employee
work satisfaction and motivation, achieving growth for both the company and its employees.
Questions on issues such as pride in the company and work, and awareness and evaluation of the work
environment help us to grasp the current situation. We use a continuous improvement cycle based on thecharacteristics of each region and workplace. We thereby aim to improve the workplace environment sothat employees can work more actively.
In fiscal year 2018, we introduced a global human resources system that forms the basis of employee
work styles. In fiscal year 2019, we will focus on the four topics of diversity, career development, work-lifebalance, and health and safety, driving initiatives to these ends.
Implementation ofEngagement Survey
Reviewing of
circumstances

Improvement for
further improvement

Improvement of
measures

Implementation ofEngagement Survey

Confirmation ofeffects

Planning formeasures

Consideration of
measures toaddress issues

Implementation of
Implementation of measures, deployment
measuresin the workplace

Diversity
Approach to diversity

Maximize dreams and drive

Our business extends globally, with overseas sales accounting for over 80% of total sales, placing us incircumstances requiring extremely fast technological innovation. Furthermore, it is essential that diverse
talent plays an active role for a company to generate innovation and continue to grow. By developing aworkplace where anyone, irrespective of gender, nationality, age, background or ability, can work easily
and feel motivated, we will promote creation of an environment where the diversity of talent leads togreater competitiveness.

Priority themes
The business environment is changing significantly, withthe acceleration of globalization and diversificationof needs, and shrinkage of the productive population
caused by changes to the population structure. In thesecircumstances, companies must hire, maintain and utilize
outstanding human resources to realize sustainablegrowth. For this reason, Tokyo Electron is creatinga workplace where a diversity of talent can flourish
regardless of gender, age or value system, through fair
employment, promotion, evaluation and remuneration,and promotion of work-life balance. At the same time, weare promoting career path development and nurturing
human resources able to think and act independently.
Employees who feel motivated to work and who are proudof the company will create new value and contribute toresolving society’s problems.

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TOKYO ELECTRON SUSTAINABILITY REPORT 2018

Systems and initiatives

Diversity

Careerdevelopment

Work-life
balance

Health andsafetyRelevant SDGs

Decent work andeconomic growth

Reducedinequalities

At Tokyo Electron (TEL), the corporate director in charge of human resources is responsible for promoting
diversity activities. In fiscal year 2018, we started operation of a global human resources system where
employees can clarify the roles and responsibilities expected by the company, and whereby evaluation andremuneration correspond with the level of achievement of targets. We have established an environment
which promotes diversity where everyone receives fair assessment and opportunities to grow and which
realizes a global work approach.
Furthermore, we are putting greater effort into harassment prevention education in order to realizea workplace where diverse employees can have greater mutual understanding. We are implementing
e-learning for all executives and employees concerning matters including power, sexual and maternity
harassment and LGBT issues, and seminars are being conducted by occupational physicians aimed atmanagement. Prevention of harassment in the workplace is one of the goals of our action plan based onJapan’s Act on Promotion of Women’s Participation and Advancement in the Workplace.
We are establishing an environment where employees with disabilities can work with peace of mind,
and are driving efforts to hire such people. In fiscal year 2018, people with disabilities accounted for 1.91% of
employees in Japan operations overall.
In addition, in an effort to increase the ratio of women in management positions, we have set a target to
double the number of women in management roles by fiscal year 2021 based on fiscal year 2018 levels, andwe are striving to achieve this with our global human resources system.

TOKYO ELECTRON SUSTAINABILITY REPORT 201834

People and workplaces

Conference for Women Engineers

Human resource development initiatives

In February 2018, we held our Second Conference for Women Engineers, linking our Akasaka headquarters
with offices throughout Japan via a video conferencing system. Women engineers discussed theirrespective field of specialty and work style as well as activities to promote women’s participation. Groupdiscussions were also conducted on topics including “How does a female engineer work?” and “Whatmust be done to accelerate and promote creation of an environment where all employees can work more
actively?” On this occasion, 104 employees, including men, participated. Lively discussions were held, andfeedback was received to the effect that the active participation of men allowed them to understand andrealize women’s situation and feelings.

Leader programs
TEL conducts programs to discover and systematically nurture people who will advance into management
to realize medium- to long-term improvement of corporate value. In fiscal year 2018, TEL conducted training
in the basic management skills required of leaders for selected mid-level employees. We also organizednetworking with internal and external business leaders, and proposed solutions to business problems. In the
future, we are also planning a practical program to improve their perspective as management executives.

Manager programs
The role of managers is important to enable value creation by each individual. In fiscal year 2018, in orderto nurture managers, we conducted training that helps trainees to understand managerial roles andresponsibilities, required behavior, how to utilize managerial organization and nurture employees, together
with practical workshops.

Voice Participation at the Conference for Women Engineers
Following on from last year, I took part in the Second Conference for Women Engineers. At this conference, wewere able to share a variety of examples and concerns, whereby we were able to reconsider our own careers. It
provided a reference for developing work styles for women in the future. We also managed to build a network withthose engaged in promotion activities at each of our bases. Through this conference, we hope for the opportunity
to consider for ourselves how to boost the number of women engineers and promote participation, and to be well
prepared to engage in activities that transcended barriers within the workplace.

Nanako Shinoda

1st Group, PF Engineering Department
Tokyo Electron Technology Solutions Limited

Career development

Voice

Human resource development system
Tokyo Electron (TEL) has established TEL UNIVERSITY as an educational facility for all the company withthe aim of helping employees to independently develop their career and realize their personal goals. The
curriculum of TEL UNIVERSITY includes courses that provide world-class knowledge and skills, with training
programs adapted to different levels and goals.
Management education costs¥62 M

It was an opportunity to realize that people grow by working in the field, by tackling work with topics themes
and issues in mind, and by taking on challenges.
ЈЈ I was surprised to see the young employees identify problems and focus on action with such keen insight, andthat they were in just their second year career since joining the company. I look forward to their future success.

Young andnew employees

35

New hiretraining

TOKYO ELECTRON SUSTAINABILITY REPORT 2018

Mid-level employee
programs
Step-up activities
Follow-up of
new employees

Technical programs

Business skills programs

Global communication programs

Mid-level
employees

Manager
programs

Leader programs

Mid-career recruits training

Seniormanagement

Goal-based programs

Web-based training required company-wide

Level-based programs

I tackled the activities with the aim of acquiring certification thatusually take three to four years in just two. I experienced repeated
failure in the challenging tasks, but by sharing the goals within
the department, I received support from my boss and was able toachieve the goal and much more. Through these activities, I learned
that we cannot grow unless we continue to take on challenges.
(Tomohiro Ajiki, Tokai FE Department, Tokyo Electron FE)

Feedback from an executive who participated in the activity presentation

Corporate education system (TEL UNIVERSITY)
Introductory programs

Step-up activitiesЈЈ(excluding travel costs for participation)

Managers andsenior specialists

Step-up activities
TEL is implementing step-up activities for about half a year from the summer of employees’ second year incompany with the aim of encouraging autonomous young employees. The young employees set their own
topics and targets in the workplace, and plan activities, which they advance, involving their superior andcolleagues, providing opportunities to develop awareness of learning and growth.

Life design seminar
Each year, TEL provides career development support to employees appropriate to their age. Within
Japan, for employees aged 51 or above, we conduct a life design seminar every year to provide necessary
knowledge and information for retirement. We also conduct programs to help with the next step incareer and life planning, such as financial planning.

Visionary Talk
We have presented a Visionary Talk since fiscal year 2016,encouraging experts in various fields to talk about the future withthe aim of nurturing the vision and creativity of employees. In
December 2017, the lectures were presented by leading experts
in the technology, design and management fields. Approximately
800 employees took part worldwide, providing them withgreat stimulation and making a deep impression. It was a good
opportunity for them to assess themselves and gain new ideas.

TOKYO ELECTRON SUSTAINABILITY REPORT 201836

People and workplaces
Work-life balance
Work-life balance concept and systems
Tokyo Electron (TEL) believes that harmony between work and life for each employee produces asynergistic growth effect both of employees and the company, and we are building structures for this.
Our vision is to realize a truly global company that creates high added value and profit. We recognizethat in order to achieve this, it is necessary to reduce overtime through efficient work techniques and tohave mechanisms in place to evaluate the outcomes. In fiscal year 2018, we began global operation ofa new unified human resources system. It clarifies the roles and responsibilities for each employee, sets
appropriate targets and challenging targets, provides absolute evaluation of degree of achievement,
awards performance bonuses and provides further career opportunities. We aim to encourage greater
engagement by evaluating the proactiveness of employees. Furthermore, we will realize creative
work styles through awareness of more efficient working, where time gained can be used for learning
opportunities and can provide further benefit to our business.

Childcare and nursing systems
TEL has established a support system, in addition to that which is legally defined. In Japan in particular, we
are working to enhance work styles for employees dealing with childcare and nursing.
In addition to allowing extension of the childcare leave period until the child reaches three years of age,
we also expanded measures to reduce working hours for childcare to employees raising children until theirgraduation from elementary school. We have also established leave to care for a sick or injured child andchildcare support leave. As a result, in Japan, we have achieved a return to work rate of 93.6% and 40% of
female TEL employees are working mothers.
Furthermore, in addition to allowing paid nursing care leave up to the fifth day, we are also improving
the nursing care system to make it possible to take nursing care leave three times per person requiring careand to allow nursing care leave of a total of one year.
Percentage of those who returned towork after childcare leave (Japan)

93.6%

Features of the global human resources system�

Rating system
The system clarifies duties (the roles and responsibilities required of the employee) supporting a global way of working

�

Evaluation system
The system is designed to establish performance goals appropriate to employee level and stretch goals designed todevelop the employee, and it assesses the employee based on achievement of (or contribution to) those goals�

Flexible work styles
We are actively seeking new work styles for employees. In addition to introducing flextime system fromfiscal year 2018, in some sales and administrative divisions we tested a teleworking system that allows
employees to utilize time more effectively by eliminating commuting time.

Remuneration system
In addition to a level of remuneration that is competitive in the market, the system provides the employee with career
opportunities as well as a productivity-linked bonus proportionate to their degree of achievement (contribution)
Leave and other support systems for childcare and nursing care
System

Supporting flexible work styles
TEL is implementing various initiatives to allow each employee to adopt a flexible approach to work
according to their individual lifestyle and stage in life.

Leave-related systems
We are endeavoring to increase annual paid leave take-up rate among employees in order to realize a
comfortable workplace environment for all employees. Regular monitoring of leave and efforts to raiseawareness for planned use of leave resulted in a domestic take-up rate of 64.3% in fiscal year 2018. In fiscal
year 2019, we aim for a take-up rate of 70%, and are therefore promoting management to improve thisrate, such as planned of 5 days paid leave each half year.
In addition, we have introduced a unique refreshment leave system. Refreshment leave aims to provide
refreshment for employees and to thereby boost their motivation to work. The system grants special(paid) leave from two weeks to one month for each five years of service to employees who have worked
for more than 10 years. In fiscal year 2018, 639 employees in Japan took refreshment leave.

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

Pregnant female employees who are under
instruction from their doctor

As per the legal requirement

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

Employees with a child who will be less than 18
months of age at the end of the following April

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

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

Flextime forchildcare andnursing care

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

More than the legal requirement(paid component)

Employees with a child who has not graduatedelementary school, or who are caring for afamily member requiring nursing care

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

Allows leave to be taken for up to a maximum of five days for employees with one child, andLeave to care for a
10 days for employees with two or more children, per business year (up to five days treatedsick/injured childas paid leave)

Employees with a child not old enough tocommence elementary schoolMore than the legal requirement(paid component)Childcare support
leave

Employees with a child not old enough tocommence junior high school

Unique system

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

Employees with a family member requiring
nursing care

More than the legal requirement(paid component)

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

Employees with a family member requiring
nursing care

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

Extended nursing
care leave

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

Executive message

64.3%

Tatsuya Nagakubo

Senior Vice President and General Manager,
Human Resources, General Affairs,
CSR Division

TOKYO ELECTRON SUSTAINABILITY REPORT 2018

Notes

Relief forcommutingdifficulties

Take-up rate of annual paid leave (Japan)

37

Eligible employees

Since its founding, TEL has consistently valued employee motivation. In order for employees to go about their daily
work with a positive attitude, it is important that: (1) they have hope for the company’s future, (2) they see theircareer taking shape within the company, and (3) the workplace environment allows them to make the most of theirtalents. TEL has put effort into cultivating cheerful and open workplaces, such as through a points-based personnel
system focused on roles, responsibilities and contribution, as well as through providing opportunities for employees
to challenge themselves in new jobs, with colleagues who support each other in developing personal careers andachieving goals, and supervisors who understand different work styles. We will continue to step up efforts to ensurethat TEL remains a company full of dreams and vitality.

TOKYO ELECTRON SUSTAINABILITY REPORT 201838

People and workplaces
Example initiative
WELLatTEL, a Tokyo Electron U.S. program, provides resources for employees and their families to improvetheir health. Employees are provided a tracking device to increase awareness of their physical activity.
Multiple locations have access to onsite gym equipment. Access to online financial education resources
increases understanding of financial security. Rewards are provided for physical challenges, such as Step
into Spring, and for completing sections of the financial awareness training. The WELLatTEL program
contributes to the “Good health and well-being” for all employees and aligns with SDGs.

Health and safety
Tokyo Electron (TEL) clearly states in its Management Policies that the highest consideration is given to thehealth and safety of every person connected with its business activities. Based on these policies, we are
increasing our global efforts to improve the health and safety of our employees.

Philosophy for health
So that employees can realize a fulfilling life’s work, and at the same time, contribute to the advancementof TEL’s business by harnessing their full capacity, it is important that each and every employee canmaintain their health and dynamism while at work. By putting systems in place, we have built anenvironment where employees can work with peace of mind. We also believe that to maintain health,
it is important that employees are aware of their own state of health and take self-directed steps for
improving it. Based on our wellness declaration announced in February 2012, we have conducted a numberof ongoing initiatives to support employees in this pursuit.

Executive message
A key ingredient to TEL’s success has been to instill a spirit of challenge and pride in the hearts and minds of
our employees. This comes to life in our workplace in many facets. We strive to create an environment where
employees feel free to challenge new ideas while taking on new and bold projects. We recognize employees fortheir success and their willingness to explore new horizons. We view development as a shared responsibility. We
accomplish this through an open door policy allowing employees to seek guidance from management on their
Barry Mayer

Systems and initiatives for healthSenior Vice President and General Manager,
Global Strategy, Chairman, Tokyo Electron U.S.
Holdings, Inc.

Support systems for health
We have built systems that are mindful of employee health. Besides conducting various medical checkups
in accordance with the law, we also offer face-to-face consultations by doctors for employees who work
long hours. We have also set up health help desks supported by doctors so that employees and theirfamilies can seek advice if they have any health concerns. We also offer counselling services supported
by external industrial counselors if requested by an employee. Regular “line-care”1 seminars are also held,
targeted at line managers.

1 Line-care: A workplace measure formental health, in which managers
and supervisors take a lead role inresponding to requests by workers
for advice, with an aim of improving
the workplace environment

Stress checks
Within Japan, we have implemented comprehensive measures for mental health. Using a questionnaire
recommended by the Ministry of Health, Labour and Welfare, employees complete a stress check oncea year, and if determined to be under high stress, they are put in contact with a public health nurse or
occupational health physician for in-depth face-to-face support. During fiscal year 2018, the stress check
was taken by 92.7% of employees in Japan.

vibrant and productive working environment.

Safety management framework
Based on a culture of “Safety First,” TEL carries out ongoing activities for safety promotion. Safety andoccupational health are managed using a management system based on OHSMS.1 We also strive to raise
the overall level of safety and occupational health by following the PDCA cycle to reduce the potential
risk of work-related accidents. Moreover, by sharing information of any issues with the EHS council andthe manufacturing company presidents’ council, we promote safety management as a company-wide
initiative.

Safety and health committee meetings, and safety inspections
At each factory and office, monthly safety and health committee meetings are held to discuss measures
for any workplace safety or employee health issues and to conduct safety inspections. TEL has also
set up a system for autonomous problem-solving at manufacturing sites, with safety inspections byrepresentatives from appropriate departments at least once per month.

92.7%

Support the security operations
Increasing the safety awareness of individual workers is crucial for providing worksites where all workers
can work safely. Therefore, before starting work at TEL manufacturing sites, all workers discuss the detailsof the job and the risks involved in an effort to prevent accidents. In addition, effort is also being directedto safety managers giving advice on how to manage hazards, as well as to the Stop Work Authority(SWA) program designed to compel workers to stop work and take corrective action in the event of an
unforeseen incident while on the job.

Wellness declaration
Based on the wellness declaration announced in 2012, we have promoted the improvement of employees’
exercise habits based on a program of Eat-Rest-Walk-Talk. At nine of our factories and offices in Japan,
we offer activities that allow employees to stay healthy every day, by giving employees small reminders
in their day-to-day life, such as healthy food choices at company cafeterias and body composition
measurement sessions.

2 Health age: An indicator showing
risk of lifestyle diseases, calculated
based on the results of an employee’s
medical checkup. The difference inyears with the employee’s actual
age is displayed, helping themunderstand their equivalent age interms of their health conditions.

Safety education
TEL promotes the creation of safe work environments by implementing two education programs globally.
Our program on basic safety targets all employees and is provided as introductory training for new hires
as well as refresher training every third year of employment. In total, more than 40,000 employees havecompleted this program. Our other program, advanced safety, targets employees working in clean rooms
and on production lines, and must be completed every year. To eliminate accidents, we also provide risk
assessment training and web-based training at offices and factories in Japan and overseas. Finally, we also
provide safety information to suppliers as part of our support for initiatives to prevent accidents.
As a result of having maintained a high priority on creating
safe work environments, TCIR2 has been maintained at or
below our target of 0.5, with 0.38 in fiscal year 2018.

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TOKYO ELECTRON SUSTAINABILITY REPORT 2018

1 Occupational Health and Safety
Management System (OHSMS): A
management system to improve
the overall level of safety andoccupational health

Initiatives for safety

Stress check take-up rate (Japan)

Self-care platform
We have introduced the Pep Up personal healthcare platform, enabling employees to get healthier bymonitoring their own state of health. The platform allows employees to easily check the results of their
medical checkups, and to record their daily health management data, such as weight, blood pressure andbody fat ratio. Other functions of Pep Up include offering employees information and suggesting activities
suited to their state of health. Health age2 is also displayed, incentivizing employees to improve their own
health.
Making the most of the platform, during fiscal year 2018, as well as holding walking events, we
distributed an activity tracker to help employees in managing their diet and exercise.

career aspirations and partner with them to grow their knowledge, skills, and abilities. All of these actions lead to a

TCIR

0.38

2 Total Case Incident Rate (TCIR): The
number of workplace accidents per
200,000 work hours

TOKYO ELECTRON SUSTAINABILITY REPORT 201840