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 theEarthquake 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 theTEL 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 totalsales (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 anexplanation 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 useof 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