TEL Spirit & Corporate Social Responsibility

Tokyo Electron Group CSR History19631994

創業 ー 理想的な会社を作りたい。
Foundation—We
wanted to create the ideal company

Founded by Tokuo Kubo and Toshio Kodaka in November 1963, Tokyo Electron(TELTM*) began as Tokyo Electron Laboratories Incorporated, with funding fromTokyo Broadcasting System (TBS) and capital of over five million yen.
Before Tokyo Electron, Kubo and Kodaka had worked for general trading
companies and directly experienced the impact of the expansion of theelectronics industry in the United States through their business deals. At thistime, the United States economy was growing at a rapid pace, and with thebirth of semiconductors in the industry, the ambitious young men achievedmuch success during this period by focusing on the electronics market andestablishing one venture business after another. Inspired by the excitement of
the United States, and possessing a strong desire to personally contribute to
the cutting-edge advances being made at the time, the two men decided tobecome independent and start their own venture. In the ideal company that thefounders envisioned, they would combine the after-sales service functions of a
specialized trading company with the manufacturer capabilities that were notpossible with a general trading company. Employees would be able to freely
discuss and share their ideas, and together would form a company that was
highly profitable, efficient, and continuously growing, in return giving back to its
employees, shareholders, customers, and society as a whole. This newcompany would constantly seek to be on the cutting edge of technology, as
well as stay constantly vigilant and alert to changing market needs.
These traditions continue to this day at Tokyo Electron, and we take pride in
our workplace and consider our employees part of the TEL family. Of course,
we also place a high priority on our shareholders, and profit is the first item in
our new revised Management Policies. As a manufacturer, the commitment tostay on the cutting edge of the electronics field remains unchanged from when
Tokuo Kubo and Toshio Kodaka started the company fifty years ago. The ideas
inherited from the time of the company’s inception, the TEL Spirit, form thecornerstone of our CSR activities.

Corporate Profile
Company name: Tokyo Electron Limited (TEL)
Address: Akasaka Biz Tower, 5-3-1 Akasaka,Minato-ku, Tokyo, Japan 107-6325
Established: November 11, 1963
Representative: Tetsuro Higashi, President & CEO
Main business: semiconductor production equipment
business, flat panel display (FPD)
production equipment business
Capital: 54,961,191,468 yen
Number of employees: 1,551
Number of group employees: 11,355
Number of locations:
In Japan: 9 companies; 29 locations
Outside Japan:
40 companies in 15 countries; 48 locations
Worldwide total:
49 companies in 16 countries; 77 locations(As of April 1, 2014)

4Standardized, Environment and Safety
Center established(Present Corporate Environment Promotion
Department and Corporate Safety
Promotion Center)

ISO 9001 acquisition begins

1995

Customer Satisfaction is establishedas the new corporate slogan
Tokyo Electron strove toachieve customer orientationand continuously work toestablish the “Globally ExcellentCompany” we envision.

1997

ISO 14001 acquisition begins

1998

Strengthening and maintenance of thecorporate governance framework
Code of Ethics established
Ethics Committee and Compensation
Committee established

In order to construct the framework to become a“Globally Excellent Company,” reorganization ofthe management structure was started, with efforts
made to begin maintaining fairness andtransparency.

1999

Received the Fourth Disclosure Award
from the TSE
Safety First established

Semiconductor production equipment

Coater/developers
Plasma etch system
CLEAN TRACKTM LITHIUS ProTM Z TactrasTM

Single wafer deposition system
Triase+TM

Single wafer cleaning system
CELLESTATM -i

FPD production equipment

FPD plasma etch/ash system
ImpressioTM

Thermal processing system
TELINDY PLUSTM

Inkjet printing system for
OLED panel manufacturing
EliusTM2500

Wafer prober
PrecioTM

Toward a Sustainable Society
2000

2007

Nomination Committee establishedThe goals of TEL UNIVERSITY are to strengthen
knowledge, skills, and management training, as well as
leadership development.

Started publishing theEnvironmental Report

We began publishing this report as ourcorporate pledge to preserve the global
environment as a business. We explain ourenvironmental policies, and specific plans
for action in implementing those policies
and the results of such actions in this report.

2001

Environmental slogan
Technology for Eco Life established

Corporate Message“People. Technology. Commitment.”
established

2009

Information Security Committee established

2013

CSR Promotion Department established

Our corporate message clearly conveyedthat we would serve as a backbone to anadvanced information-based society,and make efforts to achieve a prosperous
future.

2006633.0* TEL is a registered trademark or a trademark of Tokyo Electron
Limited in Japan and/or other countries.

Consolidated operating income(Unit: Billion yen)

508.0

The TEL Group was registered as amember company of the United
Nations Global Compact in July 2013.
In support of the Ten Principles, theTEL Group will work to maintain aharmonious pursuit of both its corporate
activities and a sustainable society.

TEL Values were established as action
guidelines composed of five items for
TEL Group employees around theworld to share, and act as a driving
force for growth.

668.7(Unit: Billion yen)

97.8

612.1
497.2

418.6

Organized for CSR promotion directly connected tomanagement

Joined the United Nations Global Compact

TEL Values established

Consolidated net sales

Human resources education institution
TEL UNIVERSITY established

60.4
32.2
14.7

12.5
-2.1

2009

2010

2011

2012

2013

2014 (FY)20092010

2011

2012

2013

2014 (FY)Net sales by division (Consolidated)

Net sales by region (Consolidated)

Electronic components &computer networks

EuropeOther

0.4 billion yen (0.1%)

100.7 billion yen (16.5%)

FPD production
equipment

28.3 billion yen (4.6%)

5.5%

26.4%

12.5%

FY2014

China

13.4%
North
America

17.1%

2013

2014

Total

775.5

828.5

Cash & cash equivalents

240.1

268.1

Trade notes, accounts receivables 100.5

129.0

Inventories

135.6

168.2

Other current assets

45.1

56.0

Tangible assets

135.6

112.3

Intangible assets

59.9

29.5

Investment & other assets

58.4

65.1

Liabilities & Net Assets

2013

2014

Total

775.5

828.5

Net assets

605.1

590.6

Debt

166.6

224.4

3.7

13.5

(Unit: Billion yen)JapanSouth Korea

PV (photovoltaicpanel) production
equipment

3.8 billion yen(0.6%)

Other 3.3%

Assets (Unit: Billion yen)

Other liabilities

FY2014
Taiwan(As of March 31, each year)

21.8%

Semiconductor
production equipment

478.8 billion yen (78.2%)

5