Procurement
In order to contribute to the development of society and achievesound and sustainable growth, the Tokyo Electron Group values
communications with suppliers and seeks to build a relationshipthat continues to grow on a global scale.

Number of companies participatingin the Production Update Briefing

300

About
companies
The TEL Group prioritizes relationships withsuppliers, and in order to share our businessoverview and policies we hold the Production

Update Briefing. About 300 suppliers took part in
the fiscal 2014 fall briefing.

CSR activities across the supply chain
In addition to daily communications, with the goal of creating better relations
with suppliers, the TEL Group holds TEL Partners Day and Production Update
Briefing as platforms to introduce a variety of CSR initiatives. We call for thecooperation of our suppliers on the Internet with regard to compliance with laborrelated laws, such as child labor and forced labor, and to respect fundamental
human rights. As a new initiative in fiscal 2014, we conducted a CSR survey
with our main suppliers based on the EICC® Code of Conduct, evaluated theresults, and carried out feedback. Furthermore, we revised our STQA (Supplier
Total Quality Assessment) to include additional items reflecting our CSR policy.
Corporate responsibility is a cooperative effort between both the company andsuppliers, and we are continuing our efforts to ensure that communications with
suppliers become more open and productive.

TEL Partners Day held in fiscal 2014(2) Support recovery efforts
and take procurement
measures(Procurement BDR*2)(3) Establish BCP systemwith suppliers(4) Build relationship with
suppliers based on mutualtrust and respect

Speed & accuracy(1) Investigate damageand evaluate impact(Procurement BER*1)

Minimize risks

Procurement BCP scheme

Pre-disaster Post-disaster measures
measures

Procurement BCP

Initiatives for procurement BCP

Conflict mineral type
Conflict
mineral name

Usage example

Tantalum

Electrolytic capacitor, IC,and refractory metal

Tin

Solder, plating, andreducing agentsTungsten

Cemented carbide, electronic
components and mechanisms

GoldIC, plating, and connectors| Glossary |Procurement BCP
The TEL Group develops disaster prevention activities and drills in cooperation
with suppliers on an ongoing basis. In order to promptly identify damage andquickly take steps for recovery following a disaster, we have built a database of
the production facilities our materials are procured from, and registered about
14,000 locations after reviewing the data with suppliers. We were able to use
this data to quickly assess the damages resulting from earthquakes or othernatural disaster in a total of nine instances in fiscal 2014. We also conduct anannual Procurement BCP Survey and use the feedback to improve our risk
prevention measures together with suppliers.

Conflict minerals
The TEL Group plans to eliminate the use of raw materials and componentscontaining conflict minerals (tantalum, tin, tungsten, and gold) from the
Democratic Republic of the Congo or its neighboring countries that form asource of funds for armed groups and give rise to human rights violations andpoor working conditions. Based on the results of our fiscal 2014 survey, wewere able to confirm that our suppliers have increasingly taken steps toward a
conflict-free industry. Starting in fiscal 2015, we plan to conduct a CFSI*3 survey
with suppliers.

*1 BER: Business Emergency Response. First response taken immediately after a disaster.
*2 BDR: Business Disaster Recovery. Recovery effort that is made according to the results of the damage investigation.
*3 CFSI: Conflict-Free Sourcing Initiative, founded by members of the EICC® and GeSI (Global e-Sustainability Initiative). Inspection and certification is being
implemented to see whether or not smelters for conflict materials are being used for the Democratic Republic of the Congo or its neighboring countries that forma source of funds for armed groups.

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