Comments from a Third-Party Expert

Fusako Matsuda
President, Environmental Economics
Institute, Inc.
CEAR Registered EMS Lead Assessor

I believe that economic downturn triggered by the financial crisis will
have a major impact on the real economy worldwide. The financial
performance of many businesses has taken a turn for the worse, andfirms with manufacturing facilities in particular are struggling amidst
an uncertain future outlook. Tokyo Electron, which conducts
business globally in Europe, the Americas, Asia and elsewhere, is noexception; and in the fiscal year ended March 2009 it saw its groupwide consolidated net sales fall by nearly half compared to the same
period of the previous year and its operating income did not evenreach 10% of the previous year’s level. It was under thesecircumstances that I visited the Yamanashi Plant in Nirasaki City,
Yamanashi Prefecture to prepare my third-party comment. I visited
manufacturing sites, a cleanroom, and a water processing facility,
but the manufacturing site was surprisingly quiet, and I inferred that
it was not operating at full capacity. I got the strong impression thatthe semiconductor business is facing extremely difficult
circumstances. Reading this report, however, I did not get any senseof desperation. On the contrary, throughout the report I perceived adetermination by senior management to use the current economiccrisis as a springboard to make capital investment in environmentrelated businesses and conduct research and development, with aneye to the future; and this attitude made me feel reassured.
The TEL Missions announced in FY2009 focus on innovation,
growth, and the environment, conveying a powerful message ofdevelopment, centered on new businesses in the environmental andclean energy fields, as well as tasks such as reducing theenvironmental impact of semiconductor and FPD production
equipment and developing photovoltaic cell production equipment. In
response to the announcement, this year’s report shows that there
are more activities related to the prevention of global warming andthe management of chemical substances. One example is the movetowards specific medium- and long-term environmental targets. The
TEL Group has set targets to develop equipment that will make itpossible to halve the total environmental impact of customer plants
and also halve the environmental impact from the business activities

of its own plants and offices and from logistics by 2015. Of
particular note is the Group’s effort to identify which processes in
the lifecycles of leading products (including materials procurement,manufacturing, logistics and product use) generate the greatest
volume of CO 2, with FY2008 as the baseline year for comparison,
thereby making targets and the content of activities visible. The
Group’s plants and offices account for only about 5% of total
emissions, while use of its products at customer plants accounts forabout 80% of the total, which underscores the key importance for
the Group of reducing the energy customers’ consume when using
those products.
Another significant development is the reinforcement of thephotovoltaic cell production equipment business. The transition to a
low-carbon society through the use of renewable energy has become
one of the most important global issues. Technological innovations
are needed to improve photovoltaic cell energy conversion rates andreduce costs. By conducting joint development with leading
manufacturers and collaborating with key photovoltaic cellproduction equipment manufacturers around the world, the Group
has adopted the proactive stance of developing new business by
combining its own original expertise and the technologicalcapabilities that it has accumulated as a production equipment
manufacturer.
In addition to these environmental initiatives, the Group hasbolstered the content of its social activities in such areas as healthand safety, internal and external communications, human resource
development, supply chain management, and activities as acorporate citizen; and it deserves high praise for its efforts toenhance its own visibility and transparency vis-à-vis the public. Inthe future, I would like to see more comments from employees andbusiness partners, as well as more examples of specific activities
concerning the efforts to reduce environmental impact and the socialactivities by overseas group companies in the U.S., Europe, and Asia
from the perspective of having the TEL values shared by Group
employees throughout the world. I expect even greater progressfrom Tokyo Electron as a leading company that is charting the course
to a future wherein theenvironment drives
economic development.

Ms. Matsuda toured theTEL Group’s Yamanashi
Plant in preparation forwriting her third-party
comment

Response to the Third-Party Comment
I would like to express my deep appreciation to President Fusako
Matsuda of the Environmental Economics Institute, Inc. for visiting
the Yamanashi Plant, one of the TEL Group’s development andproduction sites, in July 2009; and for making the effort tounderstand our environmental initiatives. We will endeavor to include
more specific information on the environmental activities of overseas
group companies in Europe, America, and Asia in future reports, as
she recommended. We are committed to working towards achieving

our medium-term target of halving environmental impact by 2015, byfocusing on innovation, growth, and the environment; and topreserving the corporate DNA of the TEL Group, which is based onrecognizing what society truly needs and meeting those needs in astraightforward manner.
Satoshi Saito, Director
Environment, Health & Safety CenterTokyo Electron Ltd.

TOKYO ELECTRON Environmental and Social Report 200931