S O C I A L R E P O RT

Communicating with Society
The Tokyo Electron Group attributes importance to dialogue with its stakeholders and will growthrough better communication with them.

The Tokyo Electron Group is committed to conducting its business
operations in harmony with local communities and states “We strive tobecome a company
that local communities hold in highesteem” in its TELValues. In responseto requests fromlocal governments,
sites within theGroup send lecturers who are experts
in industrial human▲ Participants on a study tour
resources development to local elementary, junior high, and senior high schools.
These sites also offer learning experiences and the opportunity tovisit their plants to local schoolchildren, and provide financial andother support to local events such as festivals and to blood donation activities.
EHS communication meetings are held at the Group’s manufacturing sites inviting representatives of the companies who wecommission to do on-site work. These meetings enable the sites
and their cooperating companies to communicate closely on theGroup’s environmental and safety activities in order to improvethem further.
As an example of communicating with local communities, inYamanashi district we invite children to take plant tours and participate in work experience during their summer vacation. In FY2007, 30 children who were mainly the children of Group employees participated in the event. In addition, we accept study visits by
local junior and senior high school students to our plant throughout the year. In FY 2007, a total of some 350 students visited theplant from eight schools. And in March 2007, we invited local residents to our plant and 70 people, including children, participatedin a plant tour.
In the survey we conducted after the study tours, participantscommented “I didn’t have any chance to see inside the plant. But thisvisit enabled me to get to know and understand what the plant isdoing” and “If I
have the chance, I
would like to go on
another study tour.”
These activities aresome of the ways
we promote harmony with local communities.

▲ Website page▲

Environmental and Social Report 2006

Sharing Information through EHS Times andthe Intranet
The Tokyo Electron Group publishes the EHS Times, a bimonthly in-house magazine that reports on the discussions in relevantGroup committees and introduces the environmental, health,and safety (EHS) activities conducted by the Group’s companies, plants, and offices in an easy-to-understand manner.
Individual Group companies and sites have their own in-housemagazines and use them to raise employees’ EHS awarenessand share relevant information.
We use the intranet for speedy disclosure and sharing ofEHS information within the Group. The Group’s EHS activities
are also introduced via brochures for shareholders andinvestors and the annual reports.

▲ Website page
Study tour of our plant▲▲Annual Report 2007

TOKYO ELECTRON Environmental and Social Report 2007

33
Communicating with Society

Communicating with Local Communities

Based on the recognition that it is important to promote dialogue with our stakeholders, the Tokyo Electron Group is actively communicating with them in its daily business operations. In
order to implement measures on the environment and healthand safety, we need to share information with all those related
to our business operations and to give mutual feedback on themeasures we are implementing.
We have published our annual environmental report since2000 and disclose environmental, health, and safety informationon our website. We will continue to disclose information andpromote communication with our stakeholders in many different
ways.

SOCIAL REPORTOur Approach to Communication

Communicating with Society

Our Approach to Social Contribution

Tokyo Electron Nirasaki Arts Hall

The company plans to contribute to the creation and development of culture in Nirasaki City by actively proposing theorganization of (1) events that give citizens opportunities tofamiliarize themselves with science and technology, and (2)activities that will give children the opportunity to dream.

Zero Waste Activities at the Miyagi Plant
Companies in the Tokyo Electron Group and their sites contribute to local communities by conducting local cleanups andcutting the grass. For example, 25 employees of the Miyagi
Plant cleaned the roads around their site on May 30, which falls
on “zero waste” day. In the cleanup activity, the employees alsocleaned the reflecting poles beside the road, contributing to traffic safety. Participants in the activity commented, “The amountof waste was larger than I expected,”“I found a lot of litter that had been
thrown out of car windows,” and “Iwas glad to be able to do my bit for
the local community throughthis cleanup.”

Cleanup activity▲

Communicating with Society

Tokyo Electron AT obtained the naming rights for a culture hallowned by Nirasakai City and on April 1, 2006 renamed it Tokyo
Electron Nirasaki Arts Hall. As a way of laying a firm foundationin the community and in support of the city administration’s wish
to utilize the hall for the creation and development of local culture, the company is actively
contributing to local communities by supporting themaintenance and management of local public facilities.
▲

SOCIAL REPORT34

The Tokyo Electron Group states the following: “We place thehighest priority on gaining the trust and acceptance of customers, suppliers, investors, and communities around theworld” and “We therefore strive to be a faithful and cooperative
member of the communities and nations where we do business.” We are engaged in a variety of activities to contribute tosociety and build relationships of trust with governments andlocal communities around our facilities. This is true in Japan, ofcourse, as well as overseas. These efforts are based on theabove principles. We will expand our activities, hand-in-handwith our customers and neighbors.

Tokyo Electron Nirasaki
Arts HallT O P I C STokyo Electron Kyushu Planting Trees to Protect theWatershed
As in last year, in March 2007 Tokyo Electron Kyushu planted trees on Mt.
Tawara in Aso to create a forest to protect the watershed. The planting has
been following a five-year plan (three years to plant seedlings and twoyears for them to grow). This year was the second year of the plan and a lotof employees and their family members participated in the second round ofactivities.
Participants planted trees with the slogan “Starting 100 years of forest
with the planting of small seedlings,” which was chosen from slogans proposed by employees at the company’s request. Participants also built amonument carrying the slogan to commemorate the second round ofplanting.
In Kumamoto, tap water issourced from groundwater. The
Aso area where the planting on
Mt. Tawara is being carried out issaid to act as a reservoir for
Kumamoto. In fact, rainfall in thearea permeates into the ground,and becomes an undergroundreservoir from which tap water is▲ Tree planting activity

TOKYO ELECTRON Environmental and Social Report 2007

drawn. It is, however, becoming
difficult to maintain the groundwater at the same level because of thedecrease in the number of trees
and farmland. The planting there- ▲ Planting trees
fore contributes to maintaining water resources and provides a good
opportunity for people to appreciate the environmental situation in the area.
The Tokyo Electron Group has been studying how to grow green
plants both inside and outside its sites. We use Eco-Profiler provided byKokusai Kogyo Co., Ltd. to identify how much we can contribute to societyby increasing green land,
and this gives us a guideline for our future activities.
At the new plant that weplan to construct in Taiwacho, Miyagi Prefecture, weintend to design a plantthat harmonizes with thesurrounding nature.
▲ Data obtained through Eco-Profiler

Recycling box▲

Tokyo Electron U.S. Holdings’s Contribution toSociety▲

Participants in Clean Sweep

SOCIAL REPORTSupporting the Local Clean Sweep Activity
Clean Sweep is held annually as part of Keep Austin Beautiful,and is participated in by all residents to keep the locality clean.
In cooperation with neighboring companies and local communities, Tokyo Electron U.S.
Holdings, Inc. (TEL USHD)
has been supporting thisactivity for more than fouryears.

Recycling Promoted by Employees
Employees of TEL USHD follow
the 4R’s (recycle, reduce, reuse,and rebuy) in their environmentalconservation activities. Employees
bring household waste such as telephone directories, batteries,
and cell phones to the company for recycling. In FY 2007, thefinal volume of waste was reduced by an amount equivalent to230 trees, 5,100 gallons (approximately 19,305 liters) of petroleum, or 1,200 cubic meters of landfill.

35
Mr. Noriaki Onoue
We received comments on our Environmental andSocial Report 2006 and on our business operations
from Mr. Noriaki Onoue.
(1) Comments on the Environmental and Social Report
After reading the Tokyo Electron Group’s Environmental and Social Report
2006, I was able to understand how serious they are in the environmental
and safety activities they are carrying out as part of their corporate social
responsibilities.
In addition to its EHS activities, the report refers to the Group enhancing its corporate governance framework and compliance initiatives, which I
find noteworthy.
Furthermore, the report is written using easy-to-understand expressions and helpful footnotes, making it understandable even to readers who
are not versed in technical matters.

(2) Comments on the Tokyo Electron Group’s EHS
Activities
The TEL Values, formulated in April 2006 to show the Group’s values andaction guidelines, clearly state, “We give top priority to safety, health, andthe global environment.” Also in the “Commitment by Top Management”
section of the report, both Chairman Higashi and President Sato confirm
their commitment to EHS activities. These writings communicate to me theGroup’s clear and consistent attitude to its EHS activities.
The report contains numerical verification and details product-related,supplier, and plant and office initiatives. In this way, it introduces the specific activities the Group is involved in based on its corporate philosophy
and gives concrete examples which verify the results.
In future environmental and social reports, I look forward to learning
about the improvements the Group will implement to attain its unachieved
targets.

(3) Kumamoto Prefecture’s Impression of the Tokyo
Electron GroupKumamoto Prefecture has formulated its Kumamoto Semiconductor Forest
Concept to make Kumamoto a world center for the IT industry. I am sincerely grateful to Tokyo Electron Kyushu for leading this initiative and playing a core role in the plan.

Director, Industrial Recruitment &Location Division
Kumamoto Prefectural Government

As described in Environmental and Social Report 2006, Tokyo Electron
Kyushu’s Koshi Plant in Kumamoto has been trying hard to reduce its water
use and as a result, has received the Higo Water Conservation Prize fromthe Higo Water Conservation Fund. It is clear to me that Tokyo ElectronKyushu is a company actively engaged in environmental activities on a dailybasis.

(4) Requests and Expectations for the Tokyo ElectronGroupI hope that the Tokyo Electron Group will have opportunities to publicize theactivities it is carrying out at its sites, such as the efforts made at the Koshi
Plant to reduce water use, because I think that this will help to spread theprogressive activities of the Group to other companies.
Recognizing the limited nature of our resources, Kumamoto Prefecture
is committed to a recycling-based society. We want to create a living environment for our citizens that is in harmony with Kumamoto’s rich naturalenvironment. I hope that the Tokyo Electron Group will continue with its
energetic EHS activities, which are consistent with the policies of ourPrefecture.

Our Response
We thank Mr. Onoue for his frank opinions. Tokyo Electron Kyushu
manufactures its products with the slogan, “Manufacturing the world’s
highest class products in the world’s greatest environment.”
We would like to manufacture the world’s highest quality products
in our Kumamoto, Koshi, and Otsu Plants in harmony with Kumamoto
Prefecture’s rich natural environment, and we are committed to continuing our activities to contribute to the local community.
Akira Miura
President and Representative Directorof Tokyo Electron Kyushu Limited

TOKYO ELECTRON Environmental and Social Report 2007

Comments from a Stakeholder

Comments from a Stakeholder