Comments from a Third-Party Expert
employee healthcare, TEL has issued a health declaration andlaunched various initiatives to promote health. We hope TEL willcontinue to improve its health activities and to report the positiveeffects on its management.

I present the following comments as a third-party on theEnvironmental and Social Report 2015 (“the Report”) of Tokyo
Electron Limited (TEL), taking into account explanations from TEL
representatives in charge of the EHS and CSR on environmentaland social initiatives, as well as my observations concerning lastyear’s report.

Environmental initiatives in the value chain
TEL has aimed to solve environmental issues through its businessactivities. As part of its efforts to prevent global warming, in fiscalyear 2014, TEL achieved its target of reducing energy consumptionof its major models by 50% from fiscal year 2008. This fiscal
year, TEL set a new goal of reducing energy and pure water
consumption by 10%, from fiscal year 2014 through fiscal year
2019, and launched related initiatives accordingly.
TEL measures and controls both its direct greenhouse gas
emissions and its CO2 emissions throughout the entire value chain.
Since indirect emissions from product use make up 84% of total
emissions, I expect future initiatives from TEL for reducing theseemissions, as well as reports on the progress of the initiatives.
With regard to key suppliers, it is commendable that TEL
has conducted a supplier CSR survey on the labor environment,safety, environmental measures, and other areas, to help suppliers
improve their business.

Identifying Materiality
Corporate social responsibility activities themselves cannot be agoal. They carry significance when they are performed as part ofa company’s pursuit of its main business goals. Responsibilities
that society requires of businesses vary widely, so it is essential toidentify those that are of particular importance and that should beprioritized by a company. TEL communicated with stakeholders tocomprehensively identify their needs and reported the Materiality(important sustainability issues) and the process for choosing
them. By associating the issues with CSR goals, TEL covered theresults of its CSR activities and details of the goals in the Report.
I recognize that these efforts made TEL’s report on CSR activities
sufficiently convincing, although CSR reports generally tend to be acluster of exhaustive explanations. Since I found that qualitative andquantitative metrics coexisted in the fiscal year 2016 activity goals, I
hope future goal-setting will be more objective and based on figures.

TEL’s Management Policies stated at the beginning of the Report
indicate that TEL aims to enhance its corporate value whilepursuing profit at the same time. Therefore, if the relation between
environmental and social activities and TEL’s corporate value, orthe value itself is explained in figures, all of TEL’s stakeholders,
including shareholders, will have a greater understanding of its CSR
management capabilities.

Initiatives concerning employees
Employee skills development and growth are indispensable for thesustainable growth of businesses. At the same time, it’s importantfor employees to strike a good balance between personal life andwork. In this respect, TEL is offering a wide variety of education
programs for human resource development, while launching worklife balance programs to provide better working conditions. The
Performance Summary at the end of the Report provides detailed
data, such as the percentage and number of employees who tookchildcare leave and childcare support leave, respectively. That
helped me to understand that TEL has effective measures in place
for its employees. In reviewing the data, I also noticed that the useof annual paid leave had not improved much from the previous
year, so I look for future improvement in this regard.
Today, an important social issue for businesses is promoting
health management that emphasizes the maintenance ofemployees’ mental and physical health. Effective healthmanagement helps individuals develop their capabilities andmotivation for effective business improvement. With regard to(The preceding third-party comments do not constitute an opinion on the accuracy
or completeness of the information contained in this report.)

Yoshito Nakamura
Certified Public Accountant
Adjunct Instructor of Toyo University
and the Open University of Japan
Auditor of the Supporting Organization of JOCV
Auditor of the Foundation for Accounting
Research in Construction Industry
Auditor of Kawasaki City Council of Social Welfare

Response to the Third-Party Comments
We are deeply grateful to Mr. Nakamura for visiting us and providing us with many ways in which we can improve
our initiatives more effectively. We are especially proud of receiving a favorable evaluation for revisiting the Materiality(important sustainability issues) for the first time and the reporting of the process. In response to suggestions
regarding human resource last year, we further enhanced related quantitative data disclosure. Additionally, after all
the effort we made in working with supply chain management, we were able to report initial progress results, which
we believe allowed us to respond to increasing attention from society in this area.
Suggestions we received this year include setting quantitative goals for CSR activities, verifying the effectsof activities for employees’ mental and physical health care and health promotion, and continuing to report onenvironmental initiatives in the value chain. We recognize these as important issues that we should work on
proactively on a group-wide basis, and we are committed to promoting them.

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Tatsuya Nagakubo
Corporate Director
Executive Officer, CSR Promotion
Tokyo Electron Limited