Corporate
Philosophy

Provide high-value products and services around the world that help
people to lead healthy and enriched lives.
Demonstrate consistent leadership as a world class company by creating
hope for the future and addressing environmental problems.
Share a sense of mission with all TEL employees, and become an energetic,
dynamic and creative company.

Tokyo Electron – A Part of Your Everyday Life
Tokyo Electron (TEL) technologies help resolve environmental issues through improving
performance and reducing energy usage of products made by our customers.
Semiconductor and FPD 1 products manufactured by our customers are inside a wide rangeof electronics products that you come into contact with every day.
1 Flat panel display

FPD

Semiconductor /FPD Manufacturers

Tokyo Electron
Products

TEL Values
Tokyo Electron Limited summarized the values andcodes of conduct of the Tokyo Electron Group as TEL
Values in April 2006. We will share TEL values with all
employees of the Group around the world, which willin turn drive us toward new growth in the future.
2

Semiconductor

TEL Values
Pride
We take pride in providing high-value
products and services.

CONTENTS
Tokyo ElectronTokyo Electron Corporate Policy and TEL Values . . . . p. 2
Editorial Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 3
Message from the President . . . . . . . . . . . . . . . . . . . p. 4

H i g h l i g h t
TEL’s Global Business Presence . . . . . . . . . . . . . . . . p. 6
Supporting the Recovery Effort . . . . . . . . . . . . . . . . p. 8
Introducing the New Miyagi Plant . . . . . . . . . . . . . . . p. 10

Tokyo E
lectronM a n a g e m e n t
Tokyo ElectronTokyo E
lectronR e p o r t

Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . p. 12
Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 13

E H S

R e p o r t

EHS Management . . . . . . . . . . . . . . . . . . . . . . . . . . .
Product-related Initiatives for the Environment . . . . .
Plant and Office Initiatives for the Environment . . . . .
Health and Safety Initiatives . . . . . . . . . . . . . . . . . . .

Tokyo Electron

S o c i a l

p. 14
p. 16
p. 20
p. 24

R e p o r t

Relationship with Customers and Suppliers . . . . . . . .
Relationship with Shareholders and Investors . . . . . .
Relationship with Employees . . . . . . . . . . . . . . . . . .
Corporate Social Responsibility (CSR) . . . . . . . . . . .

p. 26
p. 27
p. 28
p. 30

Comments from a Third-Party Expert . . . . . . . . . . . . p. 32
Corporate Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 33

Tokyo E
lectron

Editorial Policy

Tokyo ElectronTokyo ElectronTokyo ElectronThis report is intended to explain the TEL Group’s stance on corporate social
responsibility and report on our initiatives concerning the global environmentand society. The fiscal 2011 report features an expanded highlights section
which covers the TEL Group’s global operations, earthquake relief assistance,
and the New Miyagi Plant as well as a new layout that makes it easier tounderstand the Group’s environmental and social activities.
It is our hope that this report will serve to strengthen communication
between the TEL Group and all its stakeholders, and we hope to make use ofsuch communication in our future activities. We welcome your frank feedback
and impressions of this report using the questionnaire form provided.
The results of the TEL Group’s environmental accounting for fiscal 2011 areavailable (in Japanese) on our website:

http://www.tel.co.jp/environment/ehsreport.htm
Scope of Report
Tokyo Electron Group(Tokyo Electron and subsidiary/affiliated companies in Japan and overseas)

Period Covered
Fiscal 2011 (April 1, 2010 – March 31, 2011). However, some information
for fiscal 2012 has also been included.

Challenge

Teamwork

We accept the challenge of going beyond
what others are doing in pursuing ourgoal of becoming number one globally.

We respect each other’s individuality
and place a high priority on teamwork.

Ownership

Awareness

We will keep ownership in mind as we think
We must have awareness of and accept
things through, and engage in thoroughresponsibility for our behavior as
implementation in order to achieve our goals. respectful members of society.

Topics Covered
Areas related to the environment, society, and the economy

G u i d e l i n e s r e f e r r e d t o i n p r e p a r i n g t h i s report- Environmental Reporting Guidelines (Fiscal 2007 version) issued by
Japan’s Ministry of the Environment- 2006 Sustainability Reporting Guidelines published by the Global
Reporting Initiative (GRI)
3

Message from the President

Creating Hope for the
Future, Valuing Our
Stakeholders, andUtilizing Our Advanced
Proprietary Technologies
and Services

Our commitment to the earthquake
recovery effort

environmental problems and demonstrate consistent leadershipFirst, on behalf of the Tokyo Electron Group, I would like to

Customer feedback is what motivates TEL

in creating a society that is full of hope.

express our deepest sympathies and condolences for thevictims of the Great East Japan Earthquake. We sincerely hope

The assistance we provided to our customers’ plantsthat the afflicted areas will be able to achieve a quick recovery.

damaged in the earthquake included the extended dispatch of

The Tokyo Electron Group was one of the companies

more than 100 engineers to quickly get these facilities back onaffected by the earthquake disaster, as three of its plants in theline. Our efforts have earned us many words of appreciation

Tohoku region suffered damage. Immediately following theand a great deal of praise from our customers.

earthquake, however, we set up an earthquake response task

As evidence of our status as a production equipment

force and poured all of our efforts into quickly restoring our

supplier that creates value for customers around the world,

facilities as well as assisting the disaster-afflicted areas with

we had the honor of being presented with many suppliersupplies and donations. I visited the area soon after the

excellence awards in fiscal 2011. We are always encouraged

earthquake and saw that our employees were strongly

by the customers' words that Tokyo Electron is not only adetermined to rebuild from the disaster and worked at all hours

supplier of products, but also a partner they would like toon behalf of the Company, our customers and the community.

work with well into the future. Going forward, we stand firmly

It was really an opportunity for me to once again recognize thecommitted to helping grow the business of our customers byunderlying strength of the TEL Group. Local governments

efficiently providing superior quality products andwhere our plants are located have also called upon the TELtechnologies as well as reliable, trustworthy services.

Group to play a leading role in the recovery effort. As acompany with plants in the afflicted areas, I feel a strong and

Global network of development centersrenewed sense of commitment to support these local commu-

4

nities over the long term by further growing our company as we

The Tokyo Electron Group has been expanding its businessmove forward. With this thought close to our hearts, we will

locations around the globe. Given this expansion, we havecontinue to fulfill our corporate philosophy of helping people toespecially focused on the globalization of our development

lead healthy and enriched lives by providing high-value

centers in recent years. We will continue to focus ourtechnologies and services around the world. Further, as a top

development activities in Japan, but we are now also actively

manufacturer, the TEL Group will continue to address

moving overseas to build a framework to develop and evaluatecutting edge technologies hand-in-hand with our customers.

performance-based evaluation system, as well as a humanCurrently, we have a development center located in Albany,

resource promotion system that selects young, dynamic and

New York, in the United States, and are undertaking joint

highly competent employees to take on jobs with greater

development activities in advanced lithography-related

responsibilities.

technologies with the international consortium of IMEC, based

In order for our employees to maintain their vision andin Belgium. In addition, following our establishment of a

dynamism as they push vigorously toward our targets, I

technology center in Hsinchu, Taiwan, in 2009, we plan tobelieve we must also foster attachment to and pride in our

open a new process technology center in Hwaseong, South

company. To this end, we have recently been undertaking

Korea, in 2012. By jointly undertaking development with our

corporate branding activities, which have included acting as acustomers, who are world-leaders in their respective

sponsor for sporting events and airing TV commercials. This

technologies, we will be better positioned to bring superior

initiative has been well received by our employees, as many

quality products to market in a timely manner.

have commented that the visibility of the Company boosts
their commitment, and that they are proud of the fact that

Our commitment to achieving a
low-carbon society
Under the slogan “Technology for Eco Life,” Tokyo Electron

their family and friends know more about their Company.

Walking hand-in-hand with local
communities through our CSR activities

announced its environmental commitment and has since been
actively working to mitigate its impact on the global

The Tokyo Electron Group aspires to be a good corporate

environment with a target to cut by 50% the environmental

citizen that maintains close ties to the local community. As

impact of customers’ factories, as well as its own businesspart of our work with local communities, we offer a classroom

activities and logistics. To augment these activities, we plan tooutreach program in Miyagi Prefecture that conducts

focus especially on energy conservation measures in thescientific experiments for elementary and junior high school

period spanning fiscal 2011 to fiscal 2012, and to this end, we

students, which further illustrates our commitment to support

have installed a photovoltaic (PV) power generation system atthe education of future generations of society. In addition, ourour Yamanashi Plant and new Miyagi Plant.

long-standing efforts in the United States to purchase green

As for the PV cell production equipment business, whichelectricity, reduce water use, and undertake clean-up activities

we newly entered in 2008, we are working hard to develop

together with the local community have been widelythin-film silicon PV cell production equipment using ourrecognized, and as a result were presented with a Going

proprietary technologies. Thin-film silicon PV cell production

Green Award.

equipment represents a field where we can ably utilize ourMoving forward, our quiet dedication to these important

long-proven technologies as a manufacturer of various

CSR initiatives will continue as part of our commitment to be

production equipment, and still have sufficient opportunity toa contributing member of the local community.

improve the energy conversion rate of today’s cells. Recent

In closing, in order for the Tokyo Electron Group toenergy issues have once again sparked interest in PV power

contribute to the development of society through providing

generation, and so in order to respond to the demands ofsuperior quality products, technologies and services, I believe

society, we will focus even more on creating new

our greatest responsibility can be found in achieving soundgroundbreaking technologies.

and sustainable growth as a company. We will continue toundertake a wide range of actions based on our corporate

Creating a company brimming withaspirations and vitality

philosophy, while closely monitoring and incorporating
feedback from all of our stakeholders. I ask for your continued
understanding and support.

As a production equipment supplier, our aim is to be acompany that helps enhance social infrastructure and enrichpeoples’ lives. This mission—held equally by management
and employees alike—represents our drive to become anenergetic and dynamic company which we can be proud of.
Under the vision that “employees should thrive and theirvitality is essential to creating the future of TEL,” we haveprovided opportunities for our employees’ personal growth,such as increasing spending on training programs, despite theHiroshi Takenaka
President & CEOTokyo Electron Limited

challenging operating environment that has persisted sincethe 2008 credit crisis. Based on the belief that “employees are
our valuable assets,” we have also instituted skill building
programs suitable to each employee, a fair and equitable

5

Highlight

TEL’s Global Business Presence

Providing Customers around the World with Superior
Quality Products and Services using Our Global Network

The Tokyo Electron Group has established a global businessstructure in which its production and service bases arelocated in key countries and regions that use large volumesof wafers for semiconductor manufacturing, including
Japan, the United States, Europe, South Korea, Taiwan,
China and Southeast Asia.

The TEL Group’s Primary Business Locations
Sales and Customer Service / Field Services
R&D / Manufacturing / Technology
Parts Center

A Surefooted Global Operating Structure
TEL’s Global Network
As one of the world’s foremost suppliers of semiconductor production
equipment, TEL engages in a wide range of business activities including
development, manufacturing and sales. We have also applied our extensive
technological background in semiconductor production equipment to the

Q Fiscal 2011 Semiconductor Production
Equipment Net Sales by Region (Consolidated)
Southeast Asia and elsewhere
China
6%
5%

Japan
17%

flat panel display (FPD) production equipment segment. Many of thesemiconductor and FPD production machines we manufacture havecaptured a major share in the global market. Our global network consistingof approximately 85 locations in 12 countries spread across the UnitedStates, Europe and Asia enables us to provide superior quality products
and services to customers around the world.
Q Fiscal 2011 Net Sales by Region (Consolidated)

Japan
27%
Consolidated
Net Sales
668.7 billion yen

Overseas73%

China,Southeast Asia,
Northand elsewhere America
21%
16%Europe6%
Taiwan
South
Korea
35%
22%

Taiwan29%

North
America
20%
South
Korea
17%

6%
EuropeQ Fiscal 2011 FPD/PV 1 Production
Equipment Net Sales by Region (Consolidated)

China
22%

Japan
22%

Taiwan28%

South Korea
28%

1 PV : Photovoltaic cell6

Technologies Award at SEMICON West held in San Francisco,

TEL was selected as one of the Global 100 Most Sustainable

was presented with an official commendation from SEMI.2

California. Although not selected as the winner, the TEL Group

Corporations in the World on January 29, 2011. The Global 100

The Sustainable Technologies Award recognizes a piece ofis a list of corporations compiled jointly by Canadian publishingequipment, material or service that has a minimal impact on thecompany Corporate Knights Inc. and its partners. The list

environment andrecognizes businesses for their sustainability, based on ancontributes to a sustainableevaluation of their initiatives for the environment, society andsociety. The EXPEDIUS+

corporate governance.

was recognized for its

TEL received high marks for its

reduction of both water

reduction of greenhouse gas emissions,used in the cleaningenergy consumption and water usage.

process, and volatileorganic compounds

TEL’s Cleaning System Selected asAward Finalist for Its Reduced
Environmental Impact

produced by the isopropyl

Sustainable Technologies
Award finalist commendation

alcohol cleaning agent.

was chosen as one of five finalists for the Sustainable

EHS REPORT2 SEMI: Semiconductor Equipment and Materials International is a global tradeassociation representing manufacturers of semiconductor and FPD production
equipment as well as raw materials.

In July 2010 the TEL Group’s EXPEDIUSTM+ cleaning system

MANAGEMENT REPORTTEL Included in the Global 100 List of
Sustainable Corporations

HIGHLIGHT

Globally Recognized Environmental Initiatives

The Key to Growth is Greater R&D

external research and development organization in Belgium. We

Recognizing that bringing new high value-added products toare also working to build a structure where our R&D offices aremarkets in a timely fashion is key to unlocking its growth

located close to our customers in order to position us to respondpotential, TEL is actively committed to strengthening its research

promptly to their needs from early in the development stage.

and development activities. In addition to the R&D divisions at
each of our plants in Japan, we also carry out R&D activities at

SOCIAL REPORTTEL’s Global Approach to R&D

Q Capital Expenditures and R&D Expenses

the Leading-Edge Process Development Centerin Yamanashi Prefecture and the Tokyo Electron
Technology Development Institute, Inc. in
Miyagi Prefecture. Further, we are moving to(Billion yen)
1,000

750

expand our development activities outside ofJapan. TEL is actively working to develop new(Billion yen)
500

R&D Expenses

66

60.9

79
70.5

establishing the TEL Technology Center,
America, LLC in New York State, and throughstrengthening our partnership with IMEC, an

45
39.1

300

54

500
200

next-generation technologies and businesses ina wide range of fields through initiatives such as

Capital Expenditures

400

250

22.7
18.1

14.9

100

0
2008

2009

2010

2011

2012 (FY)(Projected)

0
2008

2009

2010

2011

2012 (FY)(Projected)

TOPICS
Conducting R&D in Closer Proximity to Our Customers
We are conducting R&D in locations closer to customers as part of our management policy toprovide the best solutions to match the needs of our customers. As part of this approach, weestablished the TEL Technology Center, Taiwan in the city of Hsinchu. In 2012, we are planning toopen semiconductor process technology centers in South Korea as well as Tsukuba City in Ibaraki
TEL Technology Center,
TaiwanPrefecture, Japan. Moving forward, we will continue to take measures that enable us to produce, as
well as bring to market, new and competitive products.
7

Highlight

Supporting the Recovery Effort

TEL’s Actions to Assist in the Recovery Effort
in the Wake of the Great East Japan Earthquake
Tokyo Electron Limited would like to express the Company’s condolences to the victims of the earthquake as well as its sincerest
hope for the afflicted areas to realize a quick recovery.
In response to the Great East Japan Earthquake, the TEL Group immediately established the Earthquake Emergency Response
Headquarters, led by president and CEO, Hiroshi Takenaka. The Headquarters served to communicate with the afflicted areas, obtain
updates and implement appropriate response measures. After confirming that all employees in the afflicted areas were safe,
we quickly moved to resume operations at each plant after the necessary repairs were made.

Recovery Status since the Great East Japan Earthquake

Tokyo Electron Miyagi Limited
;HP^H4P`HNPòUL^WSHU[Administration Building/Development Building:
Began operations in June 2011 (revised start date)
Production Building:
Scheduled to launch operations in October 2011

Tokyo Electron Technology Development
Institute, Inc. (Sendai, Miyagi)
Resumed operations on March 28, 2011

Words of Encouragementfrom Outer Space to Tohoku
In August 2011, the TEL Group hosted an event for local children from theearthquake-afflicted areas in which the group talked with Japanese astronaut andInternational Space Station (ISS) crew member, Satoshi Furukawa, in a real-timelink up between the ISS, the Japan Aerospace
Exploration Agency (JAXA)’s Tsukuba Space Center,as well as the headquarters of Tokyo Electron Miyagi
Limited. Mr. Furukawa took time to interact with thechildren and answered all of their many questions.
From outer space, he sent the message that, “If you
continue to do what you are capable of doing rightnow, tomorrow will surely be a brighter day,” which
helped uplift the spirits of the children in attendance.

8

Tokyo Electron Tohoku Limited(Oshu, Iwate)
Resumed operations on March 17, 2011

Tokyo Electron Miyagi Limited(Matsushima, Miyagi)
Resumed operations on May 9, 2011

The TEL Group has donated a total of ¥500 million in order to aid

under its business continuity plan (BCP) to assess damages

the quick recovery of the afflicted areas. Donations have been

incurred by approximately 300 of its suppliers located in the six

provided to the Japanese Red Cross Society (¥300 million), andTohoku prefectures and Ibaraki Prefecture, and also to ensure

the governments of Miyagi and Iwate Prefectures (¥100 million,

prompt response within the Company, to procure substituterespectively), where TEL Group’s plants and offices are located.

products, and secure market inventories.

Dispatch of Relief Goods

Radiation Testing

The TEL Group has collected relief goods and other donations

The TEL Group tests for radiation in all equipment and parts

including water, food, and daily living supplies from all of its

shipped overseas (as of the end

business locations throughout Japan, from its local subsidiaries

of September 2011). Thisaround the world, and from its employees. All supplies andtesting follows the ISO

donations were sent to the TEL Group’s plants and offices

standards, with decisions

located in the Tohoku region. Relief supplies have been delivered

regarding shipment made based

through the local authorities not only to those TEL Groupon regulations of theemployees and families in need, but have also been distributed

International Air Transport

to residents of the afflicted areas.

Association (IATA).

Since the earthquake and tsunami, the TEL Group has worked

Testing for radiation

MANAGEMENT REPORT

Communication with Suppliers

EHS REPORT

Donations to Aid Earthquake Relief andRecovery Efforts

HIGHLIGHT

The TEL Group’s Response to the Great East
Japan Earthquake

Addressing Restrictions on Power Usage
At the Yamanashi Plant, we installed and commenced operations
SOCIAL REPORTof a 2,000 kW PV power generation system located on therooftop of the plant’s facilities and parking lot on July 1, 2011.
Each of our business locations is striving to reduce their powerusage by replacing existing equipment with the latest energy
saving models, including high efficiency turbo freezers andcompressors, introducing staggered holidays that spread out

Tokyo Electron Yamanashi’s power monitor

non-work days by department, as well as eliminating elevatoruse, dimming lights, and changing the air conditioner
temperature settings. In addition, power consumption is being
monitored in real time in order to make it more visible within theTokyo Electron Yamanashi’s PV power generation systemfacility. This data is displayed on the intranet, which helps raise
employee awareness and promote energy conservation.

TO P I C S
Donation of PV Power Generation Systems
The TEL Group has proposed the installation of temporary small-scale PV power generation systems suitablefor evacuation centers and temporary government offices in the earthquake-afflicted areas, and is moving
forward to soon donate ten 10 kW systems to the governments of Miyagi Prefecture and Iwate Prefecture.
The construction of these PV power generation systems is simple and does not require building a separate
foundation. As such, they can be installed on unpaved ground within a short period of time. In addition, thesesystems come equipped with a storage battery, enabling self-sustained operations in case of power outages.

Conceptual image of a PV power
generation system installation

9

Highlight

Introducing the New Miyagi Plant

Our New Plant: A Cutting Edge “Eco Plant”

Tokyo Electron’s New Miyagi Plant
About Tokyo Electron’s New Miyagi Plant
In the summer of 2010, the Tokyo Electron Group began

atop the development building. In addition, the system’s power

construction of Tokyo Electron Miyagi Limited’s main plant ingenerating status is displayed on a monitor in the entrance hall,

Taiwa Town, Miyagi Prefecture. In June 2011, the administration

while employees can also confirm this information in real timeand development buildings began operations, and we plan toover the intranet.

launch operations at the production building in October 2011.
The new plant will consolidate the development and productionof etching equipment for semiconductors, a market which is
expected to see robust growth going forward. This integrated
structure will help shorten the development phase of highvalue-added products, while corresponding changes in our
production methods will improve productivity and reduce
production lead times.
The etching process is an extremely critical step in the
manufacturing of semiconductors, and as such, represents oneof our core businesses. In addition, the new plant will also

PFC Gas Abatement System with PSA Unit

manufacture our etching system Tactras RLSA Etch that uses

Our Gas Abatement System uses a pressure swing adsorption

new plasma technologies. The site of the new plant is(PSA) device to separate and recover nitrogen gas from theapproximately 300,000m2 and consists of three buildings, eachgases used in the cleaning and etching processes, as well as afocused on either production, development or administration,system that breaks down PFCs1 with an abatement device. This

with a total floor area of approximately 70,000m2.

marks the first time the TEL Group has installed such a system.

TMTM

1,000 kW PV Power Generation System

Consequently, we will be able to mitigate our impact on theenvironment through broadly reducing our emissions ofA large 1,000 kW PV power generation system has been installed

PFCs—a greenhouse gas, curbing the amount of nitrogen gas

on the roof of the production and development buildings, while

we use by recycling recovered nitrogen gas, and cutting ourenergy saving facilities have also been used extensively

energy consumption by minimizing the required number of PFC

throughout, making it an extremely eco-friendly plant. Thissystem, which uses a thin-film PV cell panel that was made using
TEL Group-related production equipment, features a 750 kW unit
installed on the roof of the production building and a 250 kW unit
10

Thin-film PV cell panel installed at the new plant

abatement devices.
1 PFC (perfluorocarbon): A fluorocarbon compound containing absolutely no hydrogen or
chlorine that is one of the six gases subject to reductions stipulated in the Kyoto Protocol.
Although PFCs do not damage the ozone layer, they have a greenhouse effect several
thousand times that of CO2.

not only energy use from lighting, but also reduce the load on the
Reused in assessment device

Gas emitted fromeach device

Separated PFC gas

Reused in assessment device
Reused in assessment device
Reused in assessment device

Separated nitrogen gas

facilities’ air conditioning systembecause LED lighting lowers theamount of heat emitted from lighting
fixtures. LED lighting also has a

LED lighting

longer service life than

HIGHLIGHT

PFCs and nitrogen gas
separated using the PSA device

conventional fluorescent
Evaluation equipment

fixtures, which we expect

Recoverytank

MANAGEMENT REPORT

will help us reduce costs
associated with replacement

Overview of the PFC Gas Abatement System with PSA Unit

lights. Furthermore, anatural light collection

Promoting the Concept of Mieruka(Visualization)system will be used toreduce the use of lighting inEnergy used in offices, production processes and assessment

offices, while the air

facilities can be checked by employees over the intranet using

conditioning system’s use of

the Eco Factory Monitor. Empowering employees to visibly

natural ventilation will help

monitor their use of energy will help us promote energy

conserve energy.

conservation activities where all employees participate.

Natural light collection system

Basic Environmental Agreement
Concluded
On May 26, 2011, Tokyo Electron Miyagi Limited concluded a

EHS REPORT

Abatement device
for PFC disposal

basic environmental agreement with Miyagi Prefecture and Taiwa
government building and attended by Miyagi Prefecture Governor
Yoshihiro Murai, Taiwa Town Mayor Hajimu Asano, and Tokyo
Electron Miyagi Limited President Hirofumi Kitayama, who eachsigned the agreement. This agreement focuses on thedevelopment and operation of an environmental management
system as well as public information disclosures. Tokyo Electron

Eco Factory Monitor

Efficient Natural Light Collection and Useof LED Lighting
The new plant employs LED lighting in the clean rooms of boththe production and development buildings. This will help us curb

SOCIAL REPORT

Town. The signing ceremony was held at the Miyagi prefectural

Miyagi Limited constantly implements the PDCA cycle 2 for its
own environmental plan in order to independently undertakeproactive environmental measures.
2 PDCA cycle: Seeking continual improvements through repeating the four steps of Plan, Do,
Check and Act.

Aspiring to Be the World’s
Foremost Manufacturer
I believe the mission of the new plant, through its integrated structure encompassing the development
and manufacturing of etching equipment, will be to continue to provide greater value added products in atimely fashion. By extensively eliminating wasted time, communications and costs, we will be able toshorten the development period for new products, as well as improve quality and productivity beginningin the development stage. In addition, as a means to fulfilling one of our environmental

Hirofumi Kitayama
Representative Director,
Executive Vice President,
General Manager,
Manufacturing Division (Quality)
Tokyo Electron Limited
President and Representative Director
Tokyo Electron Miyagi Limited

commitments—aiming to reduce by 50% the impact of our business and transportation activities on theenvironment by 2015, compared to 2007 levels—the new plant employs a PV power generation system
and LED lighting to help mitigate our environmental impact. And in terms of materials and logistics, wehope to receive the understanding of our suppliers throughout Japan toward the creation of a new system
where parts are consolidated at strategic points in each region, then shipped jointly whenever possible.
By achieving these challenges one at a time, we will aspire to be recognized by our customers as theworld’s foremost manufacturer of semiconductor production equipment.
11

Management Report
Corporate GovernanceC o r p o r a t e

The TEL Group is strengthening its corporate governance as well as
improving and reinforcing its internal control system and risk
management system with the aim of maximizing its corporate value.

G o v e r n a n c e

The TEL Group is striving to strengthen its corporate
governance through a variety of measures in order to maximize
corporate value and enhance shareholder satisfaction. We areendeavoring to establish and operate optimal and highly
effective structures of governance that are based on our threebasic principles for reinforcing corporate governance.

Corporate Governance Framework
Tokyo Electron uses the statutory auditor system based on the
Companies Act of Japan, and has established its own

P o l i c i e s

1. Ensure the transparency and soundness of business
operations
2. Facilitate quick decision-making and the efficient executionof business operations
3. Disclose information in a timely and suitable manner■ Diagram of the Corporate Governance Framework,
Internal Control System and Risk Management System
Annual Shareholders’ Meeting

Nomination Committee 1 and Compensation Committee 2 in order
to increase the transparency and objectivity of management.
Tokyo Electron has also adopted the executive officer system tostreamline the decision-making process. In addition, Tokyo
Electron has been disclosing the individual remunerations ofCompensation Committee
Board of Nomination Committee
Directors Chief Business Ethics Director
Chief Internal Control Director

Statutory
Auditors

Independent
Auditors

representative directors since 1999 in recognition of theimportance of managerial transparency for shareholders.
1 Nomination Committee: This committee nominates candidates for directors to be selected
at the annual shareholders’ meeting, and nominates a candidate for CEO to be selected by
the Board, which it submits at the Board meeting for approval.
2 Compensation Committee: This committee proposes the remuneration to be paid torepresentative directors at the Board meeting for approval.

Board of Directors

Representative
Directors

Request for
improvement/Report

Request for
improvement
Compliance & Internal
Control Executive Officer

are outside directors. In order to ensure that Tokyo Electron can
respond quickly to changing business conditions, and to moreclearly define management accountability, the term of office fordirectors is set at one year. During fiscal 2011, the Board of
Directors met on 11 occasions.

Board of Statutory Auditors
Tokyo Electron has four statutory auditors, two of whom areoutside auditors. The statutory auditors not only attend
meetings of the Board of Directors, the Management Meeting

ReportExecutive Officers

The Board of Directors consists of 15 members, two of whom

Confirm the progress ofimprovements andgive instructions
Audit and
improvement
reports
Internal Audit Dept.
(Global Audit Center)

ReportCommittees• Ethics Committee• Information Security
Committee• Export Trade Control
Committee

Request for
improvement
Audit

Risk Management &Internal Control Dept.
Request for
improvement/
ReportMonitoring

Administrative Depts.

Checks and balances

Business Depts.

and other important business meetings, but also conduct
operations audits and accounting audits, and evaluate risk

Tokyo Electron has also appointed a Chief Internal Control

management, in addition to auditing the performance of duties

Director and a Compliance & Internal Control Executive Officer.

by directors. During fiscal 2011, the board of statutory auditors

Under them, Tokyo Electron has established the Risk

met six times.

Management & Internal Control Department, which evaluates

Internal Control and Risk Management
Systems12

and analyzes risks that could affect the TEL Group and works to
reduce risks by promoting the necessary measures.
In addition, the Global Audit Center, as an internal audit

To strengthen the internal control and risk management systems

organization, oversees the internal auditing activities of theof the TEL Group more effectively, Tokyo Electron isentire group’s domestic and overseas bases, as well as theirimplementing practical measures in line with the Fundamental

compliance and systems. When necessary, the Global Audit

Policies Concerning Internal Controls within the TEL Group.

Center also provides guidance to operating divisions.

and applicable laws to ensure that its corporate activities are

Since April 2009, Tokyo Electron has appointed Compliance &conformity to ethical standards and compliance with the law, byInternal Control Executive Officer from among its executive

individual employees and by each of our organizations.

officers to raise awareness of compliance across the Group andIn line with the basic policy for internal control systems in
the Tokyo Electron Group, all Group employees are required tomaintain high standards of ethics and to act with a clear
awareness of compliance.

Code of Ethics, Chief Business Ethics
Director and Ethics Committee

further improve its implementation.

Framework for Thorough Implementationof ComplianceTokyo Electron has drawn up the Compliance Regulations
setting out basic compliance-related requirements in line with its
Code of Ethics. The Compliance Regulations are intended toIn 1998, Tokyo Electron formulated the Code of Ethics of theensure that all individuals who take part in the business activities

Tokyo Electron Group (revised in April 2011) to establishof the Group clearly understand the pertinent laws, regulations,

uniform standards to govern all of its global business activities.

international standards, and internal company rules andIn the same year, Tokyo Electron appointed a Chief Business

continuously apply these rules in all of their activities.

Ethics Director and established the Ethics Committee, which is(1) Internal Reporting System

responsible for promoting awareness of business ethics

In the event that an employee becomes aware of any activity

throughout Tokyo Electron.

which may violate laws, regulations or principles of businessThis Code of Ethics prescribes a common code of behavior forethics, Tokyo Electron operates an internal reporting system

all employees of Tokyo Electron and the Group, and Tokyo Electron(Hotline) that employees may use to report their concerns.

distributes it to all Group employees, including those overseas.

Strict confidentiality is maintained to protect the whistle blower,
and to ensure that they are not subjected to any disadvantages
or repercussions.

The Code of Ethics of the Tokyo Electron GroupI. Principles
1. Compliance with Applicable Laws
2. Acting in Accordance with Social Conscience
3. Maintaining Harmonious Relationships with Local
Communities

II. Honest and Fair Business Activities(A) Technology, Safety, and the Environment
4. Ensuring Safety and Pursuing Quality
5. Promoting Environmental Preservation Activities
6. Ethics in Manufacturing(B) Fair Trade
7. Implementing Fair and Open Competition
8. Fair Business with Suppliers
9. Handling of Confidential Information
10. Strict Export/Import Controls
11. Reasonable Exchanges of Gifts and Entertainment
within the Bounds of Common Sense(C) Relationship between the Company and Individuals
12. Prohibition of Conduct Causing Conflicts of Interests
13. Prohibition of Improper Use of Company Assets
14. Prohibition of Conduct of Harassment

III. Being a Good Corporate Citizen
15. Prohibition of Insider Trading
16. Prohibition of Political Activities and Contributions
17. Prohibition of Involvement in Antisocial Forces
18. Respect for Individuals(2) Employee Training
Tokyo Electron conducts web-based training programs for
employees, makes information on compliance issues available

MANAGEMENT REPORTThe fundamental requirements for maintaining trust are rigorous

EHS REPORT

Trust is the cornerstone of the TEL Group’s business foundation.

Compliance & Internal Control Executive
Officer

Stance on Business Ethics and Compliance

HIGHLIGHT

fair and reliable.

SOCIAL REPORT

Compliance

The TEL Group acts in strict compliance with business ethics

to employees via the Intranet, and takes other steps topromote broad awareness of compliance throughout Tokyo
Electron.
(3) Confirming Information on Japanese Laws
In order to reduce the risk of legal compliance violations, Tokyo
Electron regularly identifies and clarifies the Japanese laws that
affect company operations and regulations. Information
regarding revisions to relevant laws is received in a timely
manner via an external Web service and appropriate responses
are taken such as amending regulations, changing operational
procedures, and notifying all personnel affected by the revisions.
(4) Compliance Survey
In December 2010, the TEL Group conducted an anonymouscompliance survey via the Internet targeting approximately
12,000 employees and executives from its Group companies inJapan and overseas with the purpose to ascertain theunderstanding, penetration and inherent risks regarding
compliance within the TEL Group and to utilize this to develop
improvement measures and prioritize its actions. Going forward,
we will use the results of this survey to continually enhance ourcompliance practices and programs.

13

EHS Report
EHS Management

The TEL Group regards environment, health andsafety activities (EHS activities) among its top
business priorities.

Fundamental Idea behind EHS Activities and Our EHS Promotion System
The TEL Group regards people’s health, safety and the global
environment as three of its most significant business priorities. We

Q The TEL Group’s EHS Promotion System
Global EHS Committee

are committed to earning the trust of all of those involved in ourbusiness operations and to carrying out our business activities
accordingly, basing our actions on our belief that EHS activities willlead to long-term benefits for the entire group. As a responsible

Plant and Office EHS

Customer-site EHS

Product EHS

EHS activities
in each region

EHS activities
at customers’facilities

EHS activities
concerning theGroup’s products

corporate citizen, we are committed to realizing a healthier and more
affluent society through implementation of our EHS activities.

Q ISO 14001 Certified Plants and Offices

We have established an EHS promotion system in order to foster

Company namePlant/Office name

Certification date

EHS activities throughout the entire TEL Group. Our EHS activities

Tokyo Electron Tohoku Ltd.

Tohoku Plant

February 19, 1998

Tokyo Electron Kyushu Ltd.

Koshi/Ozu Plants

March 26, 1998

Tokyo Electron Yamanashi Ltd. Yamanashi Plant

May 15, 1998

cover three areas: Product EHS; Customer-site EHS, which concerns
product delivery and design operations; and Plant and Office EHS.
These activities are overseen by our Global EHS Committee.

(Fujii/Hosaka area)

TEL’s Group companies and TEL’s manufacturing subsidiaries inTokyo Electron Miyagi Ltd.

Matsushima Plant

March 1, 2005

particular, began implementing environmental management systems

Tokyo Electron Technology
Development Institute, Inc.

Sendai Office

June 24, 2010

Tokyo Electron Device Ltd.

Yokohama Office

July 14, 2004

based on ISO 14001 standards in 1997 and are currently in theprocess of obtaining ISO 14001 certification.

EHS Training

system functions and results. Auditing is performed fromThe TEL Group offers EHS-based training courses for both

multiple viewpoints, including within plants and offices, withingroup employees and employees of partner companies who

the Group, and by third parties.
TEL’s manufacturing subsidiaries endeavor to comply withwork at the Group’s facilities. The training course for newlaws and regulations, carefully checking environmental laws,

employees also includes mandatory EHS instruction.

emissions standards, and other pertinent regulations while also

EHS Monitoring Systemestablishing their own standards for some substances.

In order to enhance the effectiveness of our EHS management

In fiscal 2011, there were no environment-related accidents,

system, we continually increase the level of auditing that checks

Q Goals and Results for Fiscal 2011 EHS Activities and Goals for Fiscal 2012 EHS Activities
Action item
EHS management

Product-related
initiatives for theenvironment

Logistics-related
initiatives for theenvironment

Plant and officeinitiatives for theenvironment

Health and safety
related initiatives

EHS internal audit

Perform EHS internal audit at plants andoffices across the supply chain

Performed safety audits at production
facilities

Continue to conduct audits

p.14

Reduction of
product-related
environmental
impacts

Reduce environmental impact by half in
FY2015 (in comparison to FY2008)
Basic unit: CO2 emissions per 300 mm
of wafer

Implemented measures for 30-50%
reduction in strategically targeted
equipment and maderecommendations to customers

Develop and implement specifictechnology-based measures to achieve a
50% reduction and continue to makerecommendations to customers

p.15
p.16
p.17

Measures to reduce
the use of regulated
chemical substancesin equipment

Shipment of equipment with 98.5% ormore of parts in compliance with the EU’s
RoHS

Continued shipment of equipment
containing reduced amounts ofchemicals since October 2008

Increase the number of products incompliance; continue to examine
chemical-related regulations andimplement measures for compliance

p.18

Reduction oflogistics-related
environmental
impacts

Reduce environmental impact by half in
FY2015 (in comparison to FY2008)
Basic unit: CO2 emissions per ton-kilometer

Achieved 14% basic unit reduction
through shifting to seaborne shipping
for domestic and overseas destinations

Help customers streamline their logistics
by shortening equipment delivery lead time,
which facilitates a modal shift, and byproviding lighter shipping weights andincreased local procurement

p.15
p.19

Reduction of plantand officeenvironmental
impacts

Reduce environmental impact by half in
FY2015 (in comparison to FY2008)
Basic unit: CO2 emissions per unit of sales

Total CO2 emissions reduced by 7%,
but basic unit increased

Promote energy conservation activities
by installing PV power generation systems
and undertaking energy-saving measures.
Use carbon offsetting

p.15
p.20

Waste reduction

Continue zero emission efforts at
manufacturing plants

Achieved zero emissions at
manufacturing plants. The recycling rate
for the entire Group rose slightly overthe previous fiscal year

Continue zero emission efforts andexamine reducing the total amount of
waste

p.22

Achieve a 30% year-on-year reductionin the number of accidents involving
injuries or fatalities

The number of accidents involving
injuries or fatalities increased partly
due to a rise in product shipments,
thus the target was not achieved

Reduce accidents involving injuries orfatalities in FY2012 to the same or lower
level as in FY2010

Reduction in thenumber of accidents/
disasters involving
injuries or fatalities

Plans and goals for FY2012 onward

Relatedpages

Results for FY2011

Achieved target

14

Achievement
level

Midterm Goals

Achieved 80% of target

p.24

Achieved less than 80% of target

Tokyo Electron’s Environmental Commitment

1. Develop equipment that enables a 50% reduction in(2) Customer Shipments

actively utilizing carbon offsetting3 with domestic CDM.4

the total environmental impact of customer factories

The amount of CO2 emissions in fiscal 2011 was cut approximately

Some equipment delivered to customers has already been close toin half in comparison to the baseline year, and improved byachieving the target of a 50% reduction per 300 mm wafer unit. In

approximately 14% per ton-kilometer.
For shipments outside of Japan, transitioning from airborne toaddition to devoting efforts on the equipment level, we are also
striving for an overall reduction in environmental impacts, including

seaborne shipping entails lengthened shipment times, which we are

optimizing our customer’s energy use1 and addressing peripheral

addressing through efforts to reduce time spans needed to set up

equipment that they currently possess.

new equipment. Additionally, we are working to raise local

2. Reduce the environmental impact of our business andprocurement rates and reduce shipment weight by reducing
equipment parts. We are striving to make this overall transitiontransportation activities by 50%

easier and working hand-in-hand with customers to reduce by halfStarting in fiscal 2011, the environmental impact of businessactivities and logistics are now managed separately.

our basic units (CO2 emissions per ton-kilometer).

(1) Business Activities

1 Energy use: Refers to the power, exhaust, coolant, purified water, etc. involved in
manufacturing a product.
2 Per unit of sales: CO2 emissions from business activities ÷ net sales
3 Carbon offset: The compensation for part or all of greenhouse gas emissions that cannot
easily be reduced by purchasing credits equal to the amount of reduction, or
reabsorbtion, in greenhouse gas elsewhere.
4 Domestic CDM (Clean Development Mechanism): The approved reduction amount in CO2emissions in Japan’s Domestic CDM System (a Japanese government scheme thatallows small and medium-sized businesses to receive funding, technology, and technicalsupport from large businesses in working collaboratively to reduce CO2 emissions andtrade the reduced amount as emission credits)

As sales decreased in fiscal 2011, the amount of total CO2 emissions
was 7% lower when compared to the baseline year (fiscal 2008), butthere was an increase on a per unit of sales2 basis.
In fiscal 2011, in addition to the existing environmental
investment and energy saving programs to reduce CO2 emissions,
PV power generation systems were installed at our new plant inMiyagi Prefecture as well as the Yamanashi Plant. Furthermore, we
Q CO2 Emissions per Unit of Sales from Business Activities

Q CO2 Emissions per Ton-Kilometer in Customer-Bound Shipments(1,000 tons)(1,000 tons)

130
110

(t/100 million yen)

115

107

30

70

130

30

12.8

90

20

16.0
6.4

30

70

20

12.8

11.0

10

2008
CO2 emissions

2011

70
50

10

30

10
0

(t/ton-kilometer)

145

110

90
50

150

MANAGEMENT REPORT

are working to halve our CO2 emissions per unit of sales throughEHS REPORT

Progress in TEL’s Environmental
Commitment

SOCIAL REPORTP We aim to develop equipment that enables a 50% reduction−compared to 2007 levels−of the total environmental impact of new
customer factories scheduled for completion in 2015 or later.
P We aim for a 50% reduction−compared to 2007 levels−of the impact of our business and transportation activities on theenvironment by 2015.
P We will strive to achieve these commitments in partnership with our stakeholders.

HIGHLIGHT

In May 2008, the TEL Group spelled out its environmental commitment under the environmental action slogan “Technology for
Eco Life.”

6.4

10
2008
CO2 emissions

2011
Per unit of sales

2015’15 Target

(FY)

0

0

2015

Per ton-kilometer’15 Target

(FY)

0

TOPICS
Domestic CDM Greenhouse Gas Reduction
Credit — TEL’s Participation in the Great East
Japan Earthquake Recovery Program
The TEL Group plans to take part in the Great East Japan
Earthquake Recovery Program under Japan's Domestic Carbon
Credit System. Through continued participation in this scheme, theGroup will obtain carbon offset credits to fulfill its environmental
commitment at the same time as supporting the areas damaged in
the Great East Japan Earthquake.

Companies in Japan Involvedin Emission Reductions(Joint-operator)
Domestic emissions credit
Purchase price-Donation
The Great East Japan Earthquake
Recovery Program
Purchase priceDomestic emissions credit

Donation

Community chest,
local government

Relief fundRescue aid fundTokyo Electron Limited (TEL)

15

EHS Report

Product-related Initiatives for
the Environment
Reducing the Impact of Our Productson the Environment

TEL is working hard to reduce the impact of its
products on the environment by making themmore energy efficient and curbing the use ofhazardous substances.
In addition, TEL is also striving to reduce theenvironmental impact of logistics by promoting
modal shifts and creating innovative packaging
methods.

Our Approach

Energy-saving Measures for Products

The TEL Group believes it is important to promote

Our technology development efforts to reduce product energy

environmentally conscious product designs within its businessconsumption focus on the following five areas:

activities, as is clearly stated in the environmental commitment.

(1) Reducing the energy used by the product itself

We give top priority to supplying energy-saving equipment and(2) Reducing the energy along with supplementary devices

to reducing or finding alternatives to the regulated chemical(3) Managing the product in an energy-saving manner

substances contained in our products.

(4) Reducing the energy used in the clean room 1

TEL Organizations for Reducing
Environmental Impact(5) Managing the clean room in an energy-saving manner(planned operation and proper management).
Energy-saving management of the clean room involves ourTwo working groups, the Chemical Substances Steering Team

cooperation with customers and facility manufacturers. We will

and the Product Working Team, have been established towork to further reduce the energy consumption of our products inpromote the TEL Group’s efforts to reduce the environmental

close cooperation with these partners. In addition, as one measure

impact of its products. The Chemical Substances Steering Teamto reduce device energy consumption, we are working to moreworks to reduce or substitute the use of regulated chemical

accurately measure the amounts of energy consumed by devices

substances in our equipment parts and components. The

that use electricity, water, dry air, cooling water, and exhaust heat,

Product Working Team has developed and started to implement

as well as supplementary devices (e.g. vacuum pumps and coolingroadmaps to reduce the environmental impact of each of ourequipment), by following the SEMI S23 2 guidelines.

products. In preparing these roadmaps, TEL business units were

1 Clean room: A room in which dust floating in the air is controlled at or below a definedcleanliness level and in which the temperature/humidity is maintained at a specific level.
Dust can easily cause defects in precision machinery or cause errors in operation, and soclean environments are vital to ensuring that the machinery operates correctly.
2 SEMI S23: Guidelines for energy conservation for semiconductor production equipment
issued by Semiconductor Equipment and Materials International (SEMI), an international
industry organization for semiconductor/FPD production equipment and material
manufacturers.

required to address the following mandatory items: reducing
equipment energy requirements, addressing chemical
substance-related matters, reducing the number of parts andprocessing steps required, reducing the use of processing gases
and liquid chemicals, and improving the environmental
performance of existing equipment. The progress of these
initiatives is monitored as part of the Group-wide mid- toTechnology Symposium

long-term plan.

Following on from fiscal 2010, in February 2011, the TEL Group
held its 13th Technology Symposium. Presentations were madeQ Environmental Roadmap
1. Reducing our products’ energy requirements

on environmental technologies and a poster area was also set
up, enabling TEL divisions and departments to engage in a lively
exchange of ideas and information.

2. Addressing matters related to chemical substances
3. Reducing the number of parts and processing
steps required
4. Reducing the use of processing gases and liquid
chemicals
5. Improving the environmental performance of existing
equipment

The 13th TEL Group Technology
Symposium

16

Product-related Initiatives for the Environment

streamlines maintenance. In

The Thermal Processing System Business Unit (TPS BU) has

chamber simultaneously, whichdeveloped a process for forming silicon dioxide films for double

increases throughput 5 two-foldpatterning 3 at room temperature. In conventional processes, aover the previous CertasTM

temperature of several hundred degrees is required in order tomodel and reduces CO 2

break down gases and promote a vapor phase reaction, but thisemissions per unit of wafer

newly developed process takes place at room temperaturearea by approximately 50%.

through techniques such as selecting the source gas and5 Throughput: Processing capacity per unitof time.

generating radicals 4 of oxidized species using plasma. This
process has yielded the following results.

HIGHLIGHT

addition, Certas WING canprocess two wafers in the

Certas WING

Q CO2 Emissions per Unit of Wafer Area

1. Reduced Number of Process Steps:
This process makes it possible to form film atop a highly

(%)
100

50%
Reduction

heat-susceptible resist and achieve miniaturization using

MANAGEMENT REPORT

Developed Silicon Dioxide Film Formation
Process at Room Temperature – TELINDY
PLUSTMother utilities.

0

Certas

2. Reduced Environmental Impact from Film Formation:

Certas WING

Because heat is not required when forming the film, thisReducing Etching Equipment Energy
Consumption
Packaged Solution — UNITYTM IIe

process reduces theenvironmental impact fromenergy usage, heat emissions
and cooling water by 48% in

The Field Solutions Business Unit (FS BU) is working to reduce

CO 2 equivalent.

to customers.

Because no heater is required

We have worked together with the component manufacturer

to apply heat to the wafer, thisto develop and propose a solution that combines a software

process is able to reduce theprogram and a low energy consumption dry pump. The software

number of parts by 30% andprogram shuts down the dry pump used in the etching system 6

surface area by 39%.

when not in use, or facilitates intermittent operations when in use.

3 Double Patterning: One type of miniaturization
TELINDY PLUS
process.
4 Generating radicals: Describes one type ofatom configuration where a single electron orbits around the atomic nucleus in the outershell, where normally electrons orbit in a pair.

energy consumption fromtheir existing equipment by
up to 67%, while thethe device is in use, including(CO2 Emissions per Wafer Area Unit)

48%
Reduction

Conventional Process

By employing this packaged solution, our customers can reduce

environmental impact when

Q Environmental Impact from Film Formation

0

SOCIAL REPORT

the environmental impact of existing devices already delivered

3. Reduced Size of Equipment:

(%)
100

EHS REPORT

double patterning, which curbs the use of energy and

New Process

Certas WINGTM – Reducing
Environmental Impacts through Dry
Cleaning and High Throughput

power, can also be cut by
88% in CO 2 equivalent.
6 Etching System: Refers to the etchingmachine and peripheral equipment,such as the chiller for the coolant in the
etching device and the pump needed tomaintain a vacuum within the chamber.

Q Power Usage Comparison Before and After Use of
the Energy-Saving Package
(%)
100

67%
Reduction

Certas WING is a gas chemical etching device that is able to etchand clean the surface of wafers without the use of a liquidcleaning agent. The completely dry process unit, compared toliquid cleaning units, does not require chemical solutions,eliminates costly waste liquid processing equipment andUNITY IIe0

Before Use ofEnergy-Saving Package

After Use ofEnergy-Saving Package

17

EHS Report

Measures against Regulated Chemical Substances
T o k y oE l e c t r o n

G r o u p

P o l i c y

1. We will quickly supply products that are in compliance with the laws and regulations of countries inwhich our customers operate.
2. We will set our own standards and continue to make efforts to reduce the use of regulated chemical
substances in our equipment.

Taking Initiative to Reduce the Use ofRegulated Chemical Substances inEquipment

information be provided in case of exposure regarding a productcontaining more than 0.1% in chemical substances of significant

The EU’s RoHS,1 which took effect in July 2006, is widely known as avery high concern (SVHC), as well as CLP 4 standards, which has a

set of standards regulating the use of hazardous chemicals. The TEL

broader scope than GHS. In compliance with these standards, weGroup is committed to meeting RoHS standards regarding the use ofinvestigate the presence of those chemical substances designatedlead, mercury, cadmium, hexavalent chromium, poly-brominatedbi-phenals (PBB) and poly-brominated diphenylethers (PBDE), as well
as voluntarily reducing these six substances in equipment not subject tothese standards. In addition, we work with our suppliers to promote theuse of alternative products that meet stringent reduction standards forregulated chemical substances, while we also use a dedicated databaseto manage the chemical substances contained in components and theparts used in our products. From the second half of fiscal 2009, we

as SVHC and provide the safety information when necessary.
3 REACH (Registration, Evaluation, Authorization and Restriction of Chemicals): A set of
regulations pertaining to the registration, evaluation, authorization and restriction ofchemicals. For products containing SVHC (Substances of Very High Concern) in
particular, manufacturers are required to provide information on the SVHC content of
their products as well as information to ensure the safe use of the products.
4 CLP (EC No 1972/2008 Regulation on Classification, Labeling and Packaging of
Substances and Mixtures): EU regulations concerning the classification, labeling, andpackaging of chemicals and mixtures.

4. As for the Battery Directive5 enacted by the EU and Taiwan, we

began shipping equipment containing fewer regulated chemical

confirm whether applicable batteries are used inside each unit andsubstances, which we define as products containing 98.5% or moretake the necessary measures to be in compliance with theseparts that meet the EU RoHS standards.

regulations. We are also examining how to build a framework that

1 RoHS: Restriction of the use of certain Hazardous Substances in Electrical and Electronic
Equipment.

Complying with the Chemical Substance
Laws and Regulations in Countries andRegions Where Our Customers Operate
1. We provide equipment in full compliance with China’s version of
RoHS enacted in March 2007, which covers our products as well.
China’s RoHS, like the EU’s RoHS, regulates the use of lead,
mercury, cadmium, hexavalent chromium, PBB and PBDE andrequires that necessary information be provided to customers.
2. Countries around the world have begun to implement GHS2

will enable us to fully comply with these regulations from the verybottom of the supply chain.
5 Battery Directive: A set of regulations on the registration, evaluation, approval andrestrictions of chemical substances in batteries that requires information be provided on
the nature of chemical substances used and safe handling instructions whenever a SVHC
is included in a product.

Future Plans
1. We will modify and enhance our existing internal chemical
substance management system.
2. We will further increase the shipment ratio of equipment
containing reduced amounts of regulated chemical substances.
3. We will effectively utilize the framework of the Joint Article

based on the recommendation of the United Nations. The TELManagement Promotion-consortium (JAMP) and broadenGroup provides its customers with safety information on

our collaboration with customers and suppliers to promote

chemical substances covered by the GHS using material safety

more rational and accurate measures against regulated

data sheets (MSDS) and other means, and affixes labels tocontainers of chemical substances to display the necessary

chemical substances.
4. We will work to establish and strengthen systems insafety information. The example below shows a label incompliance with applicable laws and regulations not only at ourcompliance with China’s GHS standards.

plants in Japan but overseas as well, and we will also begin to

2 GHS (Globally Harmonized
System of Classification andLabeling of Chemicals):
A system agreed upon by theUnited Nations that is intended
to harmonize and integratevarious countries’ classification
standards for chemical
harmfulness and toxicity,labeling and MSDS details.

SignalWord
Prevention
Measures

Chemical
Identification
Symbol and
Pictogram
HazardStatement

Accident
Response
SafetyStorage

Reference
MSDS

Disposal
Emergency Phone
NumberLabel in Compliance with China’s GHS Standards

18

3. Europe has instituted REACH standards,3 which require safety

supply equipment containing fewer regulated chemical
substances from our overseas plants. In addition, we will
strengthen initiatives through stepping up collaboration with
the TEL Group’s locally incorporated subsidiaries overseas andby enhancing internal systems.

Product-related Initiatives for the Environment

we were able to reduce CO2 emissions in our logistic operations inJapan by approximately 130 tons in fiscal 2011.

relevant divisions and departments have created and are

We used seaborne shipping in 32% of our exports toimplementing action plans.

overseas markets in fiscal 2011. We have calculated that once we

In April 2006, Japan’s Act Concerning the Rational Use ofEnergy was revised and regulations concerning logistics wereare able to lift this ratio to 50%, and further promote local
procurement, we will be able to achieve our environmental target

strengthened with the aim of reducing global warming.

for this segment. Progress in our modal shift has meant that we

Accordingly, there is now greater demand for reducing theuse seaborne shipping for all FPD production equipment andenvironmental impact of logistics operations. In response, the TEL

semiconductor production equipment to our customers in SouthGroup has been actively reducing the environmental impact

Korea and parts of Europe and North America. We have also

caused by the transport of its products. For example, we arestarted to shift over to seaborne shipping for some of our

promoting a modal shift6 for domestic and overseas transport

customers in China and Taiwan. In order to make the change

and adopting packaging methods with less environmental impact.

from airborne to seaborne shipping easier, we are working to

We will continue these active measures in logistics in order toreduce production lead time to ensure there is no impact on thefulfill our environmental commitment.

final delivery even if we use seaborne shipping.

Reducing the Environmental Impact
Stemming from Logistics

Most of the TEL Group’s products are precision machinery, which

For shipments within the Group and product shipments tomeans they require special packaging to maintain precision andcustomers, we calculate and monitor the regulated scope of CO2

maintain a clean condition. We use special wooden frames andemissions under the Act Concerning the Rational Use of Energy

corrugated cardboard as packaging materials. As a way to reduce
the resources used for packaging, we have begun using reusable

environmental commitment, we are aiming to halve CO2

corrugated cardboard boxes when shipping large parts toemissions per ton-kilometer resulting from overseas shipments,

customers inside Japan.

In fiscal 2011, our CO2 emissions rose significantly in both

The FPD Business Unit (FPD BU) uses compartmentalized
trucks for shipments within Japan to help reduce the use ofJapan and overseas. This can be attributed to the rise inpackaging materials, compared to conventional methods, andproduction and shipment volume buoyed by an increase in sales.

increase load efficiency. As a result, we were able to reduce our

However, thanks to our efforts to actively promote a modal shift,

fleet of trucks by more than 30%.

Q CO2 Emissions from Logistics Operations and Trends
in Marine Transport Rates

150

145
5

100

140

50
0

(%)

53.6

200

17.4
2008
Overseas
Shipment Volume

Q Increasing Load Efficiency with Compartmentalized Trucks
Before

60

36.6
33
3
30

31
2
29

2009

2010

Japan
Shipment Volume

50

After
Compartmentalized Truck

40

32.0

30

70
4
66
2011

SOCIAL REPORT

compared to fiscal 2008 levels, by fiscal 2015 (see page 15).

EHS REPORTGreen Packaging

for logistics in Japan and for overseas logistics. As part of our(1,000 tons)

MANAGEMENT REPORTTEL’s Environmental Approach to Logistics
The TEL Group has established a Logistics Working Team andHIGHLIGHT

Approaches to Reducing the Environmental Impact of Logistics

20

Compartmentalized Truck

10
(FY)

0

Ratio of Seaborne Shipments to
Total Overseas Shipment Volume

TOPICS
Promoting a Modal Shift in Japan
Because TEL Group products are precision machinery that require special shipping
methods, in the past we used to ship these individually using trucks. However, after
examining alternative shipping methods together with marine shipping companies andother transport providers, we began to ship products with less of an environmental

Modal shift

impact using seaborne freight, beginning in May 2007. Currently, we are using five
shipping routes, and we estimate that we have been able to reduce our cumulative CO2
emissions by 650 tons. Moving forward, we stand firmly committed to proactively
working to further reduce our CO2 emissions during the transport of our products.
6 Modal shift: A shift in the mode of transportation (e.g. switching from conventional freight transportation by truck or aircraft to marine and rail transportation, which have a lower impact on
the environment.

19

EHS Report

Plant and Office Initiatives for
the Environment

In addition to our efforts to reduce CO 2 emissions

Measures to Help Prevent Global Warming

substances in consideration of their impact on theby half and lower energy consumption, we areproactively working to conserve resources,
minimize waste and promote recycling. We are also
fully committed to rigorously managing chemical
environment as well as general health and safety.

Reducing Energy Consumption
In accordance with Tokyo Electron’s Environmental Commitment,
the TEL Group aims to achieve a 50% reduction in CO2 emissions
per unit of sales by fiscal 2015 compared with the base year of
1

fiscal 2008. In order to achieve this target, we began to makeinvestments in fiscal 2010 that are expected to reduce our CO2
emissions by approximately 5,000 tons cumulatively, while infiscal 2011 specific measures were taken at our manufacturing
sites and offices in order to reduce energy consumption. As an

Q Electricity Consumption(Million kWh)

300

270.1

263.7

249.6

16.5

9.9

247.2

260.2

237.1

2008

2009

23.8

16.0

200

100

253.9

231.8

12.5

230.1

215.8

example of Group-wide initiatives outside Japan, Tokyo Electron
U.S. Holdings, Inc. is implementing environmental measures that0

include purchasing green electricity.

Energy Consumption and CO2 Emissions
Energy consumption in fiscal 2011 increased by approximately

2007
Japan

2010

2011 (FY)

Overseas

Q Breakdown of CO2 Emissions from Energy Consumption

10% compared to fiscal 2010 partly due to increased production2%

as a result of the growing shipment volume in each region. On

2%3%

the other hand, we were able to reduce our use of heavy oil by1%

1%Electricity
Heavy oilabout 16% as a result of recent efforts to shift energy sources.

Kerosene

FY2011

98,382t

CO2 emissions from the use of energy increased by 8%compared to fiscal 2010. There was a significant increase in our

Processed natural gas
LPG

91%

overseas CO2 emissions, which was attributable to expanded

Light oil, others

scope for calculations of emissions in the United States and thelaunch of operations at
our new technology

Q CO2 Emissions from Energy Consumption

center in Taiwan. In(t)(100 million yen/t)

110,695

113,169

116,023

per unit of sales, we

6,449

7,335

8,335

achieved a significant

104,246

105,834

107,688

terms of CO2 emissions

improvement of morethan 30%.

120,000

80,000PV power generation systemat the Yamanashi Plant

Reducing the Use of Greenhouse Gases
Other than CO2

90,665
8,994
81,67122.8
40,000

0

13.0

12.5

2007

2008

CO2 emissions(Japan)In the process development of products, as well as dry etching

21.7

2009

2010

98,382
13,53730

84,845

20

14.7

10

2011

(FY)

0

CO2 emissions perunit of sales

CO2 emissions(overseas)

and cleaning processes, we use hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs) and sulfur hexafluoride (SF6), which
are greenhouse gases. In fiscal 2011, our use of these chemicals
increased as a result of an increase in production and additions
to the number of plants covered in our calculations, but we are
currently taking measures to address this, including installing a
PFC abatement device in our New Miyagi Plant.
1 CO2 emissions (energy use) per unit of sales: CO2 emissions from energy
consumption/sales.
We used adjusted emission factors for individual electric power providers for theemission factor for electricity consumption in Japan in fiscal 2011. For the emission
factor for electricity consumption overseas, we used estimated factors calculated by theFederation of Electric Power Companies of Japan based on values published by theInternational Energy Agency (IEA).
2 t-CO2: A unit indicating the amount of CO2 and other greenhouse gases emitted, absorbed,
or stored, which is converted to the weight of CO2 with an equivalent greenhouse effect.

20

Q Greenhouse Gases Other Than from Energy Consumption(t-CO2 2)35,573 1,020

35,0003

30,00025,00020,00015,00010,0005,000
021,006 30

15,888770

17,743
165

13,863

10,610 11

8,486

12,231

3,506
3,607

4,350
3,204
3,045
2008

4,052
2,580
2009

3,926
1,421
2010

PFCs

SF6

Others2007
HFCs

28,824

3,053
2,673
2011 (FY)
Overseas

Plant and Office Initiatives for the Environment

Initiatives to Conserve Resources

and stationery and implementing green procurement practices,

introducing products such as paper cups made from agiving preference to environmentally conscious products. We

bamboo-based material. We are also working to raise employee

have also replaced printer toner cartridges for use in our offices

awareness so that they use fewer paper cups and bring theirwith cartridges made from recycled materials and cooperated

own cups to work.

with the manufacturers in recovering end-of-life cartridges.

Efforts to Reduce the Use of Paper

Efforts to Reduce Water Consumption
Our water use in fiscal 2011 increased by approximately 10%,

Our employees are encouraged to use duplex copying, to copy atwhich was due partly to an increase in production. At the samea reduced size, and to digitize information and internal circulars.

time, we are increasing the use of ground water after having

The Group’s total use of copier paper in fiscal 2011

received government approval. As more and more people are

increased significantly over fiscal 2010. This was due in part to abecoming conscious of their water use, we are conducting

broad increase in production and shipments in comparison to

studies on the use of various water resources and recycling

fiscal 2010. However, the total use of copier paper in fiscal 2011

methods. In addition, we are investigating effective ways of

was still less than half of fiscal 2008 figures, while the amountutilizing water, based on our daily efforts to prevent wasted

of paper used as a percentage of sales has also decreased.

water, through the installation of automatic faucets in restrooms
and other facilities and the reuse of water via re-circulating
cooling systems used in our manufacturing processes.

Q Copier Paper Consumption (Japan)

Q Water Consumption(Thousand sheets)(Thousand m3)

100,000

94,127
16,135

1,200

84,41913,483800
50,00077,99270,93630,0098,647
21,3620

2007
Plants

2008

2009

1,161

1,180
48

111
22

2

1,139
65

1

1,090

967

64

49

599

599

1

199

575
504

39,102
25,721531
400

16,30011,508
14,213
2010

531

429

22,80202011 (FY)

Office facilities

2007

2008

Industrial water

TOPICS

498

2009

Tap water

413

MANAGEMENT REPORT

paper and introducing resource-conserving activities by

EHS REPORTWe are encouraging the use of environmentally friendly

resources. Specifically, we are reducing the use of copier paper

SOCIAL REPORTThe TEL Group is working to minimize its use of limited

HIGHLIGHT

Our Approach to Resource Conservation

296
2011 (FY)2010
Groundwater

Overseas use

Rain

Reusing Rainwater (Yamanashi Plant)
RooftopTokyo Electron’s Yamanashi Plant (Fujii) reuses
rainwater as part of its water conservation
program. Rainwater that falls onto the rooftop
of Building No. 1 in the Fujii area is firstElevatedwater tankcollected in the rainwater receiver tank locatedin the basement. After the water is filtered andpurified, it is reused in water-cooled chillers (airconditioners) and scrubbers (air purifiers). We

Coolingdevices, etc.

Filtering device

1st floor

estimate that Building No. 1 has recycled over
30,000 tons of rainwater in the 10 years since
its completion.

Underground pit
Rainwater
filtration tank

Rainwater
receiver tank21

EHS Report

Initiatives for Reducing Waste
Our Approach to Waste Reduction andRecycling
The TEL Group is working hard to reduce and recycle its waste.

Q Recycling Rate and Generation of Incinerated andLandfill Waste (Japan)

foremost, recycle whatever waste is generated to the greatest
extent possible, and dispose of non-recyclable waste in a properand responsible manner.
We separate recyclable waste from non-recyclables, use new
manufacturing processes that do not involve waste generation,
monitor the qualifications of contract waste disposal companies,

(%)

(t)

We work according to a clear policy: minimize waste first and

97.3

500

414

400

97.3

100
0

topics. Some business sites have begun using electronic

288

276

245

80
2007

2008

2009

Incineration and landfill

manifests 1 to ensure proper management of waste materials.

2010

2011 (FY)0

Recycling Rate

Q Breakdown of Waste (Japan)
1%Volume of Waste Generated andRecycling Rates

5%

Liquid waste

10%

Metal/product waste
Plastics

6%

We have set a new target to maintain a recycling rate of greater

100

200

on educational activities related to the sorting of waste and other

2

97.3

Target: Maintain Recycling
Rate of Greater Than 97%

366

300

periodically review final waste disposal practices, and also focus

1 Electronic manifest: A system in which the flow of industrial waste is managed via acommunication network linking information processing centers, companies generating
the waste, waste collection and transportation companies and waste disposal companies,
instead of the conventional paper-based control manifest.

97.0

98.1

FY2011than 97%. In fiscal 2011 our recycling rate was 98.1%, andPaper

12,373t

7%

Wood scraps and packaging materials

63%

8%

compared to fiscal 2009 figures, incinerated and landfill waste

Drink containers
Othersdeclined by 11.2%. Nearly 100% of liquid waste, resulting fromthe chemicals used in our product development and evaluation
processes, is currently being recycled.
2 Recycling rate: Recycled amount ÷ Amount of waste
generated x 100

Q Recycling Rate for Industrial Waste from TEL Group
Plants in Japan
Tohoku Plant

99.3%
99.2%

Sendai Office

99.9%

Yamanashi Plant (Hosaka area)

100%

Yamanashi Plant (Fujii area)

100%

Koshi Plant

100%

Ozu Plant

100%

The TEL Group defines plants where less thanemission plants.” In fiscal 2011, all of our manufacturing plants

Recycling rate

Miyagi (Matsushima) Plant

Zero Emissions
2% of waste generated is incinerated or put into landfill as “zeroPlantin Japan achieved zero emissions as a result of our efforts torecycle and reduce waste.

T O P I CS
Initiatives to Recycle and Reduce the Use of Paper in Offices
At the TEL Group’s corporate head office, we have set up dedicated collection
boxes for confidential documents and recycle these into raw materials for recycled
paper. Before this, we used to shred or incinerate these documents as waste, but

Q Paper Cup Usage with the Fiscal 2004 Level
Set at 100%
(%)

100

100
78

since instituting this new collection system we are now able to recycle 100% of
these documents. When converting this amount of recycled paper into the

64

50

57

equivalent in harvested timber, it shows that we were able to conserve 216 trees infiscal 2011. In addition, encouraging employees to bring their own cups has helped
us reduce our use of paper cups by more than 40% compared to fiscal 2004.

22

0

2004

2009

2010

2011 (FY)Plant and Office Initiatives for the Environment

Management of Chemical Substances(kg)

19,761

20,0004,578

Our Approach to the Management ofChemical Substances

1,221

2,108

10,000The TEL Group uses chemical substances mainly in developing
and manufacturing products. In developing products, whenever

4,118

0

before or use chemical substances in a way that is different fromfacilities and methods, and then assess the environmental anddo not begin using the substances until all the necessary

2007

5,071

9,693

3,962

1,607
1,459
1,200

5,021

5,427

3,977

2008

2009

2010

6,285
847
236
1,225

8,469

2011 (FY)

Hydrogen fluoride and its water soluble salts
Ethylene glycol
XyleneMethylnaphthalene

their traditional usage, we first closely examine the development
operational risks associated with the use of the substances. We

1,359

9,844

5,000

we adopt new chemical substances that have not been used

13,709 169

12,450MANAGEMENT REPORT

15,000HIGHLIGHT

Q Amount of Handled Substances Regulated as Class 1
Designated Chemical Substances under the PRTR Act (Japan)

OthersQ Material Balance of Chemical Substances
Regulated under the PRTR Act
Handledmeasures have been implemented. We are also replacing
dangerous and harmful chemicals used in the manufacturing
Waste
6,437 kg/year

Released into
the air

Transferred to sewage

Compliance with the PRTR Act

1 kg/year

26 kg/year

On-site landfill

In accordance with the Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management Thereof(PRTR Act), we identify the amounts of regulated substances3

used, discharged and transferred, and rigorously control thesesubstances. Hydrogen fluoride, which we use large quantities ofduring the cleaning of test wafers, is covered under this Act. In
addition, in April 2010 a revision to this Act added
methylnaphthalene as a designated chemical substance.

0 kg/year

Released into
water

Removed

0 kg/year

2,100 kg/year

Consumed

Recycled

75 kg/year

5,070 kg/year

3 PRTR (Pollutant Release and Transfer Register): Under the PRTR system, the use ofchemical substances that may be hazardous to human health and the ecosystem, theirrelease into the environment, and their transfer (contained in waste) outside of thebusiness premises are identified, tabulated, and disclosed.

Methylnaphthalene is a substance found in heavy oil and is used

PCB Storage

in boilers and other facilities at some of our business locations.

Based on the Act on the Proper Treatment of PCB Waste and the

Ethylene glycol, which we had been handling in large volumes

Waste Disposal and Public Cleaning Acts, the TEL Group reports

until fiscal 2010, was removed from the list of designatedannually on the storage, management, and disposal of waste

chemical substances by this same revision.

containing polychlorinated biphenyls (PCB) to the governor of

After use, we properly dispose of dangerous and hazardous

SOCIAL REPORT

process with safer substances.

EHS REPORT

13,709 kg/year

the prefectures in which our plants are located. We rigorously

chemical substances either through specialist waste disposal

manage our compliance with the above Acts, as we did so whencontractors or using our in-house processing equipment. Going

trace amounts of PCB were detected from transformers andforward, we will continue to properly manage risk relating tocondensers set for disposal after the demolition of one of ourthese chemical substances.

closed plants in fiscal 2011.

Q Input and Output (FY2011)

Input
Electricity

254.04 million kWh

+9.6%

Gas

1.142 million m3

-2.4%

Fuel

1,826 kl

-7.6%

1.090 million m3+12.7%

Water

OutputChange fromprevious year

Chemical substances

Total product shipment 24,322 tons

+84.8%

CO2 emissions

98,382 tons

+8.5%

NOX emissions

10.5 tons+4.0%

12,373 tons

+22.6%

from energy consumption

The Tokyo
Electron Group

Change fromprevious year

Waste

13.7 tons(regulated as Class 1 designatedchemical substances under the PRTR Act)

+121.0%Recycled amount

12,128 tons

+23.6%

Paper(copier paper)+52.0%

Amount of waste

245 tons-11.2%

155 tons

23

EHS Report

With health and safety positioned as a vital
foundation of its business activities, theTEL Group promotes “health and safety
first” from a range of aspects.

Health and Safety Initiatives
Our Approach to Health and Safety
As part of our Corporate Social Responsibility (CSR) activities,

and the number of equipment setups due to our rapid expansion

the TEL Group places great importance on ensuring that our

into new markets.

customers, employees, and everyone else involved in its

The TEL Group issued an internal state of emergency

business can work in a safe workplace environment, use our

proclamation in the second half of fiscal 2011 in order to curb a

products safely, and enjoy good health.

rise in the number of workplace accidents. This was followed by

In fiscal 2011, we further expanded our existing safety

a series of measures led by the presidents of each Group

inspection activities at our customers’ plants in Japan andcompany to reduce accidents collectively across the entire

overseas. For plants that newly install our production

Group. Specifically, our efforts focused on stepping up safety

equipment, we use a check sheet to verify with the customer theeducation, holding meetings before work to detect risks,

safety of the work environment as well as the installation of

ensuring the use of safety equipment, adhering to safety rules,

safety equipment.

and better preventing ergonomic 2 accidents. Moving forward,

There is a risk of tripping or falling during the installation

we will continue with safety education for our workers,

work of our production equipment in clean rooms because

ensuring safe workplace environments and also further

construction work is required to make an opening in the floor

expanding workplace safety inspections led by managers andfor the equipment to be connected to power and other utilities.

supervisors. As a new measure, we also began conducting a

In order to raise awareness of these risks and to instructpre-work check test using the intranet. We are firmly committed

workers on the proper procedures, such as installing barricades

to completely eliminating workplace accidents collectively as anin the work area, we held a trainer development class for

entire company.

around 40 employees in Taiwan in fiscal 2011. This course took

1 Workplace accident: The TEL Group defines an accident involving an injury to an
employee that belongs to the TEL Group as a “workplace accident,” following theguidelines of the United States Occupational Safety and Health Administration (OSHA).

place in one of our clean rooms and simulated actual working
conditions in order to2 Ergonomics: A scientific approach that researches both physical and psychologicalhuman functions as well as properties and designs to develop equipment andenvironments to match these. Here, the term ergonomic accident refers to a
musculoskeletal disorder that occurs as a result of lifting a heavy object, work that
requires unnatural postures, or repetitive work processes.

instruct participants
on work procedures
and situations.
Similar types ofsafety and practical

Q Workplace Accident Occurrence Ratehands-on training(%)

programs are being

50

47

43

conducted in othercountries and regions

Practical training class in the clean room28

around the world.
25

23

Preventing Workplace Accidents before
They Occur
The number of workplace accidents 1 that occurred across theentire TEL Group in fiscal 2011 (excluding accidents during thecommute or very minor accidents) increased over fiscal 2010
figures. This was mainly attributable to an increase in production

TOPICS
Safety Promise Booklet
The safety promise booklet summarizes the precautions andchecks required during work at our plants or our customers’
plants. Broken down into sections, including “The 7 Points of
Safety,” “Electrical Work,” “Working in High Places” and“Safety Equipment,” the safety promise booklet features theessential rules to keep in order to ensure workplace safety. Thisbooklet is distributed to and utilized by all workers.

24

0

2007

2008

2009

19

2010

TEL Group Workplace Accident Occurrence Rate
Note: Fiscal 2001 set at 100 for the Accident Occurrence Rate2011 (FY)Since July 2000, the TEL Group has been promoting the concept

electrical work and robotic moving parts, we are better able toof safety education throughout the entire Group. We have

prevent accidents before they happen.

produced a manual as a tool for basic safety education that is

HIGHLIGHT

Safety Education

provided to all Group employees. More advanced safety

Semiconductor Equipment Association of Japan (SEAJ). In lightof our safety track record from fiscal 2010, advanced safety
refresher courses in fiscal 2011 focused on the themes of

Educational tool using 3D video

preventing ergonomic accidents before they occur and safety in

Implementing Hands-on Safety Education

work tasks involving large production equipment.

Tokyo Electron FE Limited conducts hands-on safety education

As a new trial beginning in fiscal 2012, we are now

for employees of the TEL Group as well as employees of partner

conducting a pre-work check test, having upgraded our previous

companies that work within the TEL Group. This same

system in which we used our intranet to verify our customers’

curriculum is also being taught to a large number of ourrules and practices prior to visiting their plants. Through thiscustomers and in schools. In July 2010, we organized a two-day

test, workers are able to achieve safer working conditions bysafety hands-on training class for around 80 participants at theconfirming safety rules immediately prior to work.

request of one of our customers.
This training program begins with a lecture on the correct
way to wear safety belts and importance of lockout-tagout 3

EHS REPORT

clean rooms, using the guidelines compiled by the

MANAGEMENT REPORT

education is provided for our technical employees who work in

activities, and goes on to hands-on training which covers awork on tall structures to awareness of physical loads
suspended in the air, awareness of the risk of electrocution, andPre-work check test and refresher training using the intranet

Training Using Videos
The TEL Group utilizes a safety education tool that simulates
actual cases of accidents from the past using 3D video to help
prevent serious accidents or accidents that have the risk ofdeveloping into serious accidents.
Centered primarily on accidents during work involving
semiconductor and FPD production equipment, this tool
enables employees to look back on whether effective
communication was used, whether proper management wasundertaken, and whether the workload of employees involved at
the time was a factor. By heightening sensitivity toward risks
involving work in high places, work involving heavy objects,

experiencing first-hand exposure to chemical liquids in apractice setting. Through these simulated experiences of danger,
participants learn about the importance and seriousness ofworkplace safety, which has helped us to prevent accidents.

SOCIAL REPORT

broad range of areas, from the wearing of safety belts during

3 Lockout-Tagout: To prevent unintended actuation of a power switch on equipment byusing tools such as a key to put it out of commission (lockout) and a tag to indicate thatuse of shutoff or similar equipment is prohibited (tagout).

Hands-on Learning Curriculum
Orientation
Wearing safety belts on tall structures2(single belt / harness)
1

3
4
5
6
7

Flying fragments
SparksElectrocution
Chemical spatters
Lockout-tagout training

Wearing safety belts
on tall structures

TOPICS
Offering Stretching Seminars to Prevent Low Back Painand Shoulder Pain
The TEL Group provides a stretching seminar as one way of combating low back pain andshoulder pain resulting from the workplace or otherwise. We have seen a rise in reports oflow back pain and shoulder pain, with low back pain particularly high, and nearly all ofthese cases occurred during work because of lifting or bending. To address this, in fiscal
2011, we held a stretching seminar for employees troubled by low back pain and shoulder
pain with the goal of preventing injuries, relieving stress and promoting good health.
Classes were fun but serious and were taught by professionals including Pilates and yoga
instructors and other health specialists.

25

Social Report
Relationship with Customers
and Suppliers

The TEL Group sets honest policies for
product quality and procurement aimed
at satisfying customers and enhancing
growth with suppliers.

Approach to Product Quality

Approaches to Procurement

The TEL Group aims for product quality that generates customer

In accordance with its corporate philosophy, the TEL Grouptrust in its products and services through continuous provisionbelieves in the importance of growing its business together withof products and services that consistently satisfy its customers.

its suppliers through building partnerships based on mutual trust.

In order to ensure that our manufacturing systems do not
produce defective products, we have acquired ISO9001

Q Procurement Policy of the TEL Groupcertification and also work to ensure that our product quality

1. Partnerships

management system operates effectively.

Q TEL’s Commitment to Quality
1. Quality is our top priority
TEL’s goal is to achieve the highest quality in the world.

2. Product quality awarenessAll employees must understand the importance of product quality to TEL’s
business. Quality must always be given priority, even if profits are temporarily
affected. That is how we build long-term trust, and contribute to society.

3. Observing company rules
Employees must observe the rules stipulated by each TEL organization toensure that quality remains our top priority and continues to improve. These
rules and regulations are reviewed regularly to ensure that they areappropriate and effective in our effort to improve quality.

4. Employee responsibility
Employees are responsible for making product quality their top priority. They
must remain aware of potential problems, actively identify and analyze them,and take necessary action for improvement.

5. Managers’ responsibility
Managers must monitor on-site conditions at all times, spot problem areas,
and give instructions for improvement. Managers must ensure that theirsubordinates have a good understanding of the overall TEL businessenvironment, including customers’ requirements, and must makeemployees aware of the importance of enhancing the quality of all TEL
products and services.

Quality Assurance System
The TEL Group has established a quality committee comprisingheads of the quality assurance departments of each businessSuppliers represent a key business partner to developing products that cangain the true satisfaction of customers. The TEL Group selects its suppliers inaccordance with its selection criteria in a fair and equitable manner based on
the precondition of free competition and that suppliers continue to pursue
high value-added technologies. We will continue to build relationships withour business partners that enable both parties to grow and that are based on
mutual trust.

2. Cost reduction
The TEL Group will reduce its total costs in order to provide products aligned
to market needs at satisfactory prices.

3. Lead time reduction
The TEL Group will reduce product delivery lead time and ensure stable supplies
of its products to customers in order to agilely respond to market needs.

4. Coexistence with the global environment
The TEL Group will proactively employ components and technologies that areconsiderate of the global environment (promotion of green procurement) andundertake product manufacturing with a reduced impact on the environment.

5. Global procurement activities
The TEL Group will flexibly and speedily promote global procurement
activities in order to provide to its customers components and technologies
that conform to market needs.

6. Compliance with legal and social codes
The TEL Group will adhere to the laws, regulations and social codes of thecountries and regions in which it operates, and will undertake honest
procurement activities grounded in sound corporate ethics so that it can berecognized as a leading company globally.

7. Product quality/safety assurance
Under the management policies “safety first” and “quality is our top priority,”
the TEL Group will continue to seek quality and safety in its components andproducts on a global level.

8. Information management
The TEL Group will rigorously manage and safeguard confidential informationfrom its customers and suppliers obtained through its business activities.

unit. The committee meets regularly to oversee efforts to

Communication with Suppliers

enhance product quality and address priority issues, thus

The TEL Group not only uses EDI* for procuring parts andpromoting improvement and enhancement of product quality formaterials, but also operates its own website as a two-way tool

the entire Group.

for communicating with suppliers.
We make daily efforts to address a variety of challenges

Q Framework for TEL’s Product Quality System
President of Tokyo Electron

Quality
Promotion
Department

Executive Vice Presidents of Tokyo Electron(General Manager of the Quality Division)

faced by our suppliers, and we seek to share the values set out
in our corporate philosophy using various platforms, including
the Production Update Briefing
held semiannually by theGroup’s manufacturing
companies and the annual TEL

Presidents/GMs of TEL Group companies
Quality Committee
Heads of the quality assurance
departments in the TEL Group
Quality Committee

Partners Day.
* EDI (Electronic Data Interchange):
A framework to electronically exchange
information related to commercial
transactions among corporations in a
unified standard format.

26

TEL Partners Day
held in fiscal 2011

Communicating with
Shareholders and Investors

Information Disclosure
Approaches to Information Disclosure

Annual Shareholders Meeting

Tokyo Electron is committed to disclosing information about the

To encourage lively discussions at annual shareholders meetings

Company in a fair, prompt and accurate manner, to ensure that all

and to encourage shareholders to exercise their voting rights,

stakeholders, including shareholders and investors, can obtain an

invitations are sent out early—more than three weeks prior to theaccurate, in-depth understanding of the Company and its activities inmeeting—and for the convenience of our shareholders, we workorder to evaluate the Company’s corporate value appropriately. The

to avoid the date when most major Japanese companies holdCompany also solicits feedback from its stakeholders as part of its

their shareholders meetings. Tokyo Electron participates in theinformation disclosure activities, then uses the feedback as a point of

web-based voting platform for institutional investors operated byreference to guide corporate management.

Investor Communications
Japan Inc. (ICJ).

Information Disclosure Methods
Tokyo Stock Exchange’s “Timely Disclosure Network” (TD-net),

resolution and materials for annual

and will post the same information promptly on its corporateshareholders meetings. An English

website. Even when it does not fall into the category of material

version of the notice of convocation

information, we voluntarily disclose information which may be

for the annual shareholders meetingof interest to stakeholders in a fair, accurate, andis also provided.

easy-to-understand manner, through various means of

48th Annual General Meetingof Shareholders (held in June 2011)

communication, including on our

Quarterly Financial Conference

website or in printed form.

Tokyo Electron conducts meetings to discuss its financial resultswith securities analysts and investors; these meetings are also

To ensure that foreign investors
have fair and equal access to thisopen to members of the press. The Company makes audio

information, we strive to disclose allrecordings of its fiscal year-end and mid-term financial results

information simultaneously inmeetings, and posts these recordings on the Company’s

Japanese and English.

website. All of the documents distributed at its quarterly
financial results meetings are also posted on the website.

SOCIAL REPORT

notices of convocation, notices of
EHS REPORTTokyo Electron’s website carries

Tokyo Electron releases timely disclosure information via the

TEL’s corporate website

HIGHLIGHT

The TEL Group emphasizes fair, equitable, andtimely disclosure of information to anddialogues with shareholders and investors,
both in Japan and overseas.

MANAGEMENT REPORT

Relationship with
Shareholders and Investors

Publicized IR-related Materials
Tokyo Electron is a constituent of
the FTSE4Good Global Index.

Presentation materials
used at a results briefing

Materials prepared for anannual shareholders meeting

Financial Summary

Since September 2003, Tokyo Electron
has been chosen for the FTSE4Good
Global Index, which is a CSR index
provided by the FTSE Group. The FTSE
Group is a world-leading index firm, ajoint venture between the Financial Times
newspaper and the London Stock
Exchange.

Fact Book

Financial Report

Annual Report27Social Report

Relationship with
Employees

We are striving to create a workplace that enables all of ouremployees to reach their full potential based on respect for their
enthusiasm, autonomy, and willingness to take on challenges.

TEL’s Basic Philosophy on its Personnel
SystemWorkplace to Support Employees

In pursuit of our vision of becoming an energetic, dynamic andemployees to achieve work-life balance. These efforts include

creative company, the TEL Group respects the autonomy of its

enhancement of childcare leave,1 childcare support working

employees and their willingness to undertake challenges,

hours,2 nursing leave3 (5 days per year) and childcare support

thereby helping them to realize their full potential.

leave (5 days per year). In fiscal 2011, a total of 69 employees

Our personnel system is designed to help each employee

The TEL Group is committed to developing a system for helping

took childcare leave.

achieve self-development and to contribute to greater dynamism

We have instituted a “refreshment vacation” system, whichof the organization. Our evaluation system does not simply

allows employees to take a two-week to one-month holiday

focus on results but also emphasizes the process leading up towhen their term of service has reached 10, 15, 20, or 25 years.

the results, including in particular, the efforts made and the level

We are also taking active steps to prevent on-the-job mentalof skills demonstrated by individual employees in achieving

health problems, which have increased recently in Japan, by

these results. The purpose of this system is to fairly evaluate

increasing our healthcare staff and providing education on

employees’ total job performance based on the following threemental health issues.

criteria: individual role (mission), scope of abilities required at

1 Childcare leave: A system under which employees can take leave until the end of the Aprilfollowing the date on which their child turns 18 months old (or until their child reaches
the age of three in some exceptional cases).
2 Childcare support working hours: A system under which employees can opt to work for
shorter hours by one and a half hours per day until the end of the fiscal year in which
their child completes elementary school (age 12).
3 Nursing leave: A system under which employees with children that have yet to enter
elementary school are eligible to take 5 days of leave to provide nursing care to a child in
need or 10 days for two or more children in need.

each step of a process (competency), and results achieved
according to role (performance). The competency factor is used
not only for evaluation and assessment purposes but also as a
guideline to improve individual skills and nurture the capabilities
required for each workgroup.

Career Developing Program
The TEL Group provides a variety of support to its employees in
response to their different career ambitions.
Once a year, employees fill out a Self-Declaration form tocommunicate their preferences regarding job transfers or toshare individual work-related requests. These employee
requests are taken into consideration. We have also instituted an
Open Job Posting System where employees can apply at theirown volition to new projects or projects with a high degree ofurgency. By widely recruiting eager and aspiring employees
from within the Company and giving them opportunities topursue their own career path, this system has added a greaterlevel of dynamism to the organization. In addition, employees in
the general job category are promoted to management
positions, in line with their wishes, after they are evaluated for

Enjoying both work and child-raisingThis spring I returned to work from mysecond childcare leave. I have foundthat programs available to assist
employees returning from childcare
leave have improved and that there are
more colleagues like me who arebalancing childcare with work.
Although it saddens me somewhat
when my children cry after I drop themoff at daycare, I arrive at work more
focused and driven than ever knowing
Kanako Ichikawa
that at the end of the day they will be
Legal Department
Tokyo Electron Limited
there to greet me with a great big
smile and a hug when I pick them up. I
am grateful knowing that this slice of happiness has been made possibleby the warm support of my colleagues in my department.

those positions through an interview.

Q Concept of the TEL Group’s Personnel System

28

MissionCompetency

Performance

Employees

Understand your own role as wellas the mission of the organization

Refine your own professional skills

Utilize your skills to attain yourindividual targets as well as thetargets of the organization

Company

Convey the Company’s mission
and targets

Provide the skill-building and careerdevelopment opportunities
necessary for employees and theorganization to reach their targets

Evaluate employees based on their merits
Provide a fair distribution of compensation

In the BLP-B Training Program,*younger employees active on the front
lines of the TEL Group work together ina training camp format to discuss theconcept of leadership and being aleader. Together we spent a total of one
year and six months in the program.
Before, I used to spend my days
earnestly pursing the most cuttingedge technologies as an engineer, but
through the final assignment of the
Takashi Matsumotoprogram, which requires participants to Technology Development Centerjoin forces to develop aTokyo Electron Limited
recommendation to TEL executives, I
became more willing to commit myself to growing our company and moreaware of the role I can play in making this happen. Utilizing my newly
acquired leadership skills from the BLP-B Training Program, I hope tocontribute to the growth of the TEL Group by developing leading edge
technologies that standout from our competitors.

TEL Group fosters a spirit of learning among its employees,
characterized by the following three principles established for its
human resource development.
(1) The workplace must support employee development.
(2) Self-motivation and a sense of responsibility are the basic
requirements for employees to develop their talents and careers.
(3) The Company must build a platform or framework that provides
employees with the opportunity and motivation to learn.
The Group believes that education and training only succeed
when implemented continuously. In line with this belief, we areworking to enhance our management organization and maintainour educational budget.

* BLP-B Training Program: A training program offered to mid-career
employees that seeks to develop the future leaders of the TEL Group byteaching basic professional knowledge and skills as well as fostering
participants’ thought processes and awareness as leaders.

HIGHLIGHT

Based on the belief that “employees are our valuable assets,” the

MANAGEMENT REPORT

Reflecting on my time in the BLP-B Training Program

EHS REPORTTEL’s Basic Philosophy on Human
Resource Development

TEL UNIVERSITYof their respective workplaces. During the program, groupopportunities for continued learning, thereby enhancing theleaders express their own vision and reflect on what actions tocapabilities of both individual employees and the overalltake today to reach that vision. Other group leaders taking part

organization. TEL UNIVERSITY is intended to provide employees

in the program also share their visions so that everyone canwith opportunities to obtain the knowledge and skills necessary fordiscuss ways of achieving them.
TEL executives also attend TEL UNIVERSITY courses andeach to perform world-class work, build employees’ management
capabilities and organizational strengths, as well as develop thetake part in lively discussions with employees. Successful

leaders of tomorrow.

human resource development requires employees that areAs part of its curriculum to develop the leaders of tomorrow,enthusiastic about learning, as well as managers and a corporate

TEL UNIVERSITY teaches employees about management

culture that support employee growth. Employees actively

philosophy grounded in ideals, perspective and humanity, as welllearning at TEL UNIVERSITY and applying what they haveas about general strategic ability. Through dialogue with TEL

learned to their work and workplaces promotes the growth ofexecutives and experts from various fields, the training program

both individual employees and the organization as a whole.
Going forward, TEL UNIVERSITY will continue to contribute toalso seeks to have employees establish their own values andcreate a cornerstone for their decision making abilities.

SOCIAL REPORTWe also offer a training program for group leaders in charge

The TEL Group established an internal educational institution, TEL
UNIVERSITY, with the aim of providing employees withthe growth of the TEL Group by developing competent professionals.

TOPICS
Professional Development Education
With the aim to enhance the technical competencies of the TEL Group, TEL UNIVERSITY offers a special
curriculum for the development of professionals that focuses on core technologies, shared platform
technologies and semiconductor devices. Lectures on semiconductor devices are open to all employees,
not just engineers, and teach employees about the history of the semiconductor, its operating principles,
how it is made, and the growth of the industry. Employees taking part in the lecture have noted that they
were able to better understand their job after knowing more about the technology, and that they had astronger desire to provide even better production equipment to customers who manufacture
semiconductor devices. As a result, employees have grown more proactive toward their work andoverall the Company has been infused with a stronger sense of dynamism.

Lecture on semiconductor devices

29

Social Report

The TEL Group seeks mutual
development with local communities
through various communication activities
that foster a relationship of trust.

Corporate Social
Responsibility (CSR)
Corporate Citizenship Activities

The TEL Group believes that one of its tasks is to contribute to the development ofsociety, while always complying with social laws and norms. Based on this belief, we
engage in a variety of activities in Japan and overseas as a good corporate citizen.

Initiatives in Japan
Afforestation and Tree Planting Activities
Each of the TEL Group’s plants and offices proactively take part in tree
planting activities. In May 2011, shortly after the Great East Japan
Earthquake, Tokyo Electron Tohoku Limited planted 420 konara oak trees andfive commemorative Japanese cherry trees on a 0.14 hectare plot of land
owned by Oshu City located to the west of its site. Part of the Company’safforestation program to help prevent global warming, this event was
attended by a total of 125 employees and their family members. In addition, a
total of 14 employees and their members from the Sapporo Technology
Center of Tokyo Electron Software Technologies Limited took part in a tree
planting event organized by the Hokkaido Prefectural Government in which
they planted around 70 trees including Sakhalin fir and Glehn’s spruce. OtherTEL Group companies, including Tokyo Electron Yamanashi Limited andTokyo Electron Kyushu Limited, are also taking part in afforestation activities.

Local Community Events(Miyagi Prefecture)
Following our success in 2009, the TEL Group once againorganized “Talk about Fun Science!” for elementary school
students and their parents in Miyagi Prefecture in 2010. In
conjunction with this event, we also held classroom
outreach sessions in which we led special classes onscientific experiments in six elementary schools in Miyagi
Prefecture with the cooperation of professors from Tohoku
University. The main event was held at Tokyo Electron Hall
Miyagi, and during the science show participants were able
to see the power of air from an air cannon and had thechance to feel static electricity in action as everyone inattendance held hands to receive a small shock.
Conference rooms in the hall were made into a makeshiftscience experiment zone thanks to the help of researchers
from Tohoku University and members of local NPO
organizations. Given the highly favorable feedback fromparticipants, we plan to continue holding this well-received
event going forward.
30

HIGHLIGHT

Initiatives Overseas
Campaign to End Breast Cancer (Europe)

MANAGEMENT REPORTOn October 29, 2010, employees at the head office of Tokyo Electron
Europe Limited (TEE) in Crawley, UK, participated in Wear It Pink Day toraise money in the fight against breast cancer. As part of their efforts toraise awareness and support this charity event, employees wore pink attire
to work. With breast cancer being one of the most prevalent forms ofcancer, in the UK alone one in nine women will be diagnosed with breast
cancer in their lifetime. Donations collected by TEE were gifted to leading
global research projects being conducted in the UK and Ireland. Funds will
be used to study breast cancer mechanisms and to provide higher quality

EHS REPORT

diagnosis, treatments and prevention programs.

Recognized with a Going Green Award(United States)
Tokyo Electron U.S. Holdings, Inc. (TEH) was recognized with a

SOCIAL REPORT

Going Green Award by the Austin Business Journal. This award
consists of eight different categories. TEH was presented with theaward from the Green Business category in recognition of its
purchases of green electricity, recycling of cafeteria cooking oil,reduction in power usage by 17% over the past six years, and water
usage by 19%, as well as its employee training and education, andongoing joint clean-up activities together with the local community.
The photographs at right show an employee vegetable garden set
up on the TEH grounds and a tree planting event involving
employees and their children.

Giving Christmas Presents to an
Orphanage (Taiwan)
Tokyo Electron Taiwan Limited (TET) gave out
Christmas presents to children living in a local
orphanage. This event was planned by the TET
Welfare Committee, and when a call was made fordonations, employees responded by bringing inaround 200 gifts. On the day of the event, the TET
President and employees dressed in Santa Claus
costumes and handed out presents to every child at
the orphanage.

31

Social Report

Comments from a Third-Party Expert
I have read Tokyo Electron’s Environmental and Social Report 2011 andreceived an explanation of the Company’s environmental and social
activities from staff at TEL’s Corporate Environment Promotion
Department. Here I express my view on this report as a third-party
expert. I would also like to note that I had an opportunity to visit theCompany’s Fuchu Technology Center as part of this review.

1. TEL’s Corporate Philosophy and Support of the
Earthquake Recovery Effort
First, I would like to comment on the Company’s initiatives to support therecovery effort in the wake of the Great East Japan Earthquake asmentioned in the report’s highlights section. Based on its business
continuity plan (BCP), the TEL Group set up the Earthquake Emergency
Response Headquarters immediately after the earthquake, theninvestigated and confirmed the extent of damage suffered by its four
plants in the Tohoku region. This prompt and precise response enabled
the Company to return each of its plants and offices back to normal
operations at present. As part of its basic management philosophy, theTEL Group states that it will provide high value added technologies andservices to its customers as a leading supplier, and under this basic
philosophy, the Group dispatched a large number of engineers to theafflicted areas following the earthquake and was able to provide a speedy
response to ensure that its customers were able to maintain theiroperations. During emergencies, leadership and its orders tend to fall
into disarray, in many cases leading to difficulties and problems, but I
believe the daily commitment of each and every employee to share andunderstand the Company’s philosophy and code of conduct helped the
TEL Group respond in an appropriate manner.

2. Overseas Expansion and Environmental Initiatives
The TEL Group’s overseas sales now account for around 73% of its total
sales (fiscal 2011). Of this, Asia, including South Korea and Taiwan,
accounts for approximately three-fourths of the Group’s overseas sales.
Therefore, the Company’s environmental initiatives are needed not only inJapan, but on a global scale. As such, the TEL Group has defined anenvironmental commitment in which it is aiming to develop products thatwill reduce its total environmental impact by half in 2015, compared to2007 figures, including CO2 emissions from new customer plants. This
will naturally help protect the global environment. And, by sharing its
environmental philosophy and targets with customers—thus generating
more shared values—the TEL Group will be able to develop a positive
relationship with customers and society. I believe this will have a positiveeffect on the Company’s business performance over the long run. This
commitment specifically promotes the development of products from thedesign stage that are more energy efficient and use lower amounts ofregulated chemical substances, as well as spells out solutions to curbing
environmental impacts, reducing steps and streamlining equipment forcustomers’ semiconductor manufacturing processes. Going forward, I
hope that the TEL Group will continue to fulfill its responsibilities tosociety as a leading supplier.

3. Environmental Initiatives in Plants and Offices
Today, companies are faced with added demands to curb the use ofcommercial electricity as a result of shortages in the wake of the Great
East Japan Earthquake. The TEL Group has responded by installingphotovoltaic power generation systems and graphically visualizing its
electricity usage through power monitors at several of its plants andoffices. As part of this third-party comment, I visited the Fuchu
32

Technology Center and got a first-hand look at the front lines of the Field
Solutions business which engages in the maintenance, repair andmodification of the Group’s semiconductor production equipment alreadyin use by customers. During my visit, TEL employees provided an
explanation about the fact that many of the Company’s older models arestill being used because modifications have helped to extend their service
life. I understood that this helps reduce the environmental impact as wellas enables the customer to curb their use
of natural resources and cut costs.

4. Health and Safety Initiatives
Employees are the most essential resource for enhancing theperformance of a company. Therefore, it is important to build a work
environment where all people involved in business activities can worksafely and stay healthy. The key to bringing out the best in employees isgood health. According to the Constitution of the World HealthOrganization, health is the state of complete physical, mental and social
well-being, but also encompasses a wide range of other conditions. This
report mentions that the number of workplace accidents involving
injuries or fatalities in fiscal 2011 increased over the previous year.
Although this is attributable to an increase in production due to a rapid
launch into new markets, I would like to closely monitor the future
results of the TEL Group’s initiatives already underway to reduce thenumber of workplace accidents.

5. Future Issues
I was able to fully understand the TEL Group’s passion and serious
efforts toward the environment and society from this report. My
recommendation would be to better reflect the needs of stakeholders in
the content of this report by including greater commentary on
eco-friendly products and solutions for customers, and explanations ofsemiconductors and production equipment for general consumers. In
addition, greater explanation of the relationship between the Company’senvironmental as well as social activities and its business performanceand future outlook would be helpful for investors and stockholders. I
believe these additions would enable the report to win over an evenlarger audience of readers.
Note: The third-party comment above does not contain opinions on the accuracy orcompleteness of the information included in this report.

Yoshito Nakamura
Professor, Faculty of Business
Administration
Toyo University
Certified Public Accountant
Auditor of the Supporting Organization of JOCV
Auditor of the Kawasaki City Council of Social Welfare
Director of the Research Instituteof Accounting for Construction
Industry

Corporate Profile
Company Name : Tokyo Electron Limited (TEL)
Address: Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku
Tokyo 107-6325, JapanTel.

: +81-3-5561-7000

Established: November 11, 1963

Capital: ¥54,961,190,000 (as of April 1, 2011)

Main Products : Semiconductor production equipment, flat
panel display (FPD) production equipment, andphotovoltaic (PV) cell production equipment
Employees: 1,212 (non-consolidated; as of April 1, 2011)

Q Net Sales by Division (Consolidated)
0.4(0.1%)

66.7(10.0%)

Semiconductor
production equipment
FPD/PV production
equipment

90.2(13.5%)

Fiscal 2011

10,595 (consolidated; as of April 1, 2011)(Billion yen)

Electronic components& computer networks
Other

511.3 (76.4%)

Q Net Sales and Operating Income (Consolidated)(Billion yen)

1,000

906.0

851.9

668.7
508.0

500

418.6
143.9

0

168.4
14.7

2007
Net sales

2008

2009

-2.1
2010

97.8
2011 (FY)Operating income

Q Net Sales by Region (Consolidated)

Q Group Employees(Number of Persons)

10,0009,877

10,685

10,491

10,204

10,595

4.3%

4.6%

Japan

7.3%

27.2%

TaiwanSouth Korea

5,000

15.4%

Fiscal 2011

North America
China

0

15.9%
2007
April

2008
April

2009
April

2010
April

25.3%

2011
April

Southeast Asia
EuropeResponse to the Third-Party Comment
I am deeply grateful for Professor Nakamura’s efforts toinsight is truly appreciated. Going forward, we will strive tounderstand the TEL Group’s environmental and social activities

improve our recognition of stakeholder needs and enhance ourand by taking the time from his busy schedule to visit ourcommunication with customers, general consumers,

Fuchu Technology Center and see first-hand our initiatives inshareholders and investors by providing more specificthe used production equipment business. Professor Nakamura

information on our environmental and social initiatives.

pointed out that the social responsibility of a company can befound in sharing and implementing its environmental
philosophy and targets with customers and employees, as wellas the importance of continuing this practice. This positive

Toshiya Matsuda
Director
Corporate Environment Promotion Department
Tokyo Electron Limited

33

The TEL Group held the TEL Eco-Life Painting and Photo Contest from July to September 2011 as part of its
activities to raise environmental awareness. We received a host of entries from overseas and Japan.

Sunlight is Life, Sunlight is Green,
Sunlight is Natural Energy(Europe)Everyone Can Save Energy(Japan)Let’ s Conserve and Reuse Water(South Korea)

Corporate Environment Promotion Department
2-30-7 Sumiyoshi-cho, Fuchu City
Tokyo 183-8705, Japan
Tel: +81-42-333-8050 Fax: +81-42-333-8477
http://www.tel.com

Everyone’ s Earth(Japan)Blowin’ in the Wind

(Japan)

New Life(Japan)Otter River in Spring(United States)

Conserving Electricity Even in Akihabara(Japan)Electric Town

Love of Nature

Owl(United States)

Flower after a Rain Shower(Japan)Windmill (South Korea)(Europe)

We use green power(Biomass, 1,000kWh) inprinting and the bookbinding
process of this CSR report.

Green power has generated by power
plants of Solar, Wind, Small Hydro,
Geothermal and Biomass.

The main body of this report (pages 3 to 32) was
printed on paper made from trees thinned fromforests as part of forest invigoration efforts.

PR49-245

A — (2)— 060002

This report was printed using
environmentally-friendly
vegetable oil ink.

Published: November 2011