Human resource management

People andworkplaces

Human resource management system
Tokyo Electron (TEL) regularly conducts a global engagement survey which aims to enhance employee work satisfaction
and motivation, achieving growth for both the company and its employees. Questions on issues such as pride in thecompany and work, and awareness and evaluation of the work environment help TEL to grasp the current situation. The
company uses a continuous improvement cycle based on the characteristics of each region and workplace, whereby itaims to improve the workplace environment.
In fiscal year 2019, TEL established a new evaluation system to support the global human resources system
introduced the previous year. The company also focused on the four topics of diversity and inclusion, careerdevelopment, work-life balance, and health and safety, to promote the creation of a workplace environment where
employees can work more happily.
Implementation ofEngagement Survey
Reviewing of
circumstances

Recently, it has become important for companies to develop operations that are sustainable from the perspectives of people
and workplaces, meeting the new demands of society, responding to new demands of society, such as the decline in the working
population and diversification of workstyles, employing people with diverse values, and so on. By promoting work-life balance, as
well as diversity and inclusion, Tokyo Electron shows respect for various work styles, as well as the individuality and values of eachof its human resources, treasuring the new value introduced when individuals exercise their capabilities. In addition, the company
is strengthening operation of a global human resource system, evaluation system, and its human resource development program,promoting health and safety, among other measures, in an effort to nurture employees who feel their work is rewarding, and whoare proud of the company.

Improvement for
further improvement

Improvement of
measures

Implementation ofEngagement Survey

Confirmation ofeffects

Planning formeasures

Consideration of
measures toaddress issues

Implementation of
Implementation of measures, deployment
measuresin the workplace

Diversity and inclusion
Medium-term goals (4)Maximize dreams and drive

Priority themes, Main activities

Systems and initiatives

SDGs initiatives■By globally promoting a highly transparent human resource
system, together with fair appointment and remuneration,
strive to facilitate rewarding, human-focused employment(decent work)

Diversity andinclusion

Careerdevelopment

Work-life
balance

Health andsafety■Human resource management
Human resource management system■Proactively develop work-life balance, diversity andinclusion, and pursue equality among people and in theworkplace■Diversity and inclusion
System and initiatives, Conference for Women Engineers■Career development■Human resource development initiatives■Work-life balance
Basic skill enhancement initiatives, global human resource system,
promotion of paid leave-taking, childcare and nursing systems■Health and safety
Support systems for health, self-care platform, safety
initiatives, accident reporting system

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TOKYO ELECTRON SUSTAINABILITY REPORT 2019

Decent work andeconomic growth

Reducedinequalities

Overseas sales account for over 80% of total sales for Tokyo Electron (TEL), positioning the company in circumstances
requiring extremely fast technological innovation. In order for TEL to generate innovation and continue to grow, it isessential for the company to be one where personnel with diverse individuality and strengths can play an active role
while exercising their capabilities. TEL is actively promoting the creation of an environment where the diversity of talentleads to greater competitiveness, by developing a workplace where anyone, irrespective of gender, nationality, age,background, disability, or stage of life, can work while feeling at ease, tackle challenges with strong motivation, and beable to grow.
In fiscal year 2019, TEL launched a Diversity Promotion Team. It conducted an employee awareness survey, focusing
on female employees, managers, regarding one element of diversity: gender diversity, achieving a response rateof approximately 80%. The company has built a foundation that promotes diversity, through lively debate, with agreater workplace perspective, on what kind of workplace to create, on work styles, and on what is needed to support
development of abilities, to ensure that employees from various backgrounds, including those with time constraints,
can continue to work at TEL. In fiscal year 2020, the company will launch a dedicated taskforce to promote diversity andinclusion, which it will develop with a core human resource strategy of promoting an environment where diverse talentfrom around the world can play an active role and produce results irrespective of gender, nationality, or disability, while
minimizing the impact of the stage of their lives.
Furthermore, TEL is putting effort into harassment prevention education and awareness activities in order to realize aworkplace where diverse employees can play an active role with greater mutual understanding. In fiscal year 2019, legal
advisors conducted live seminars to raise awareness of the issue of power harassment in particular, attended by roughly
90% of the company’s approximately 1,100 executives and managers. TEL is working to establish an environment where
employees with disabilities can work with peace of mind, and is driving efforts to hire such people. In fiscal year 2019,
people with disabilities accounted for 2.04% of employees in Japan operations overall.

TOKYO ELECTRON SUSTAINABILITY REPORT 201934

People and workplaces

Conference for Women Engineers

Life support

Since fiscal year 2018, TEL has held a Conference for Women Engineers, linking Akasaka headquarters with offices
throughout Japan via a video conferencing system, to support networking among women engineers, and to provide
opportunities for learning and awareness. At the third conference, held in February 2019, an external speaker was invited
to talk about careers for women, and other lectures were given by young women engineers and women in management.
On this occasion, around 100 employees, including men, participated. Feedback included comments that the opinionsfrom external parties help the participants to broaden their horizons, and that they were able to exchange information
and build communication with other engineers, indicating that they recognized the impact of the event. In the future, thecompany plans to expand the scope of such events beyond engineers.

TEL provides employees with various programs so that they can make full use of their abilities and feel peace of mind
while in the company. Within Japan, TEL conducts a life design seminar every year for employees aged 51 or over in orderto provide important information for retirement, including how to spend their years until retirement as well as financial
planning beyond retirement. In an effort to support staff development, the company also conducts seminars for otherage groups on topics relevant to many employees, including nursing of family members and psychological self-care.

Career development

Initiatives to improve basic skills

Work-life balance

Human resource development system
Tokyo Electron (TEL) has established TEL UNIVERSITY as an in-house educational establishment for the entire company
to help employees to develop their careers and realize their personal goals independently. The curriculum of TEL
UNIVERSITY includes courses that provide world-class knowledge and skills, with training programs adapted to different
levels and goals.
Corporate education system (TEL UNIVERSITY)
Management

Executives

Leaders

Mid-level
employees

1
OJT: On the JobTraining

Junior employees
New employees

2
WBT: Web-Based
Training

Introductory programs (new graduates, mid-career recruits)OJT1 programs (new graduates, mid-career recruits)

Level-based
programs

Manager programs

Mid-level employees

Junior employee programs

Leader programs

Compulsory WBT2Business skills
Goal-based

Global communication

programs

Life support
Technical programs (seminars & workshops)

Management education costs¥49 M

Human resource development initiatives
Leader programs
TEL conducts succession programs to identify and systematically nurture staff who will advance into management andrealize medium- to long-term improvement of corporate value. In fiscal year 2019, TEL conducted training for selected
next-generation management candidates and dispatched them to external training, supporting them to gain a broader
perspective and to build networks outside the company. TEL is also developing practical programs that meet the
expectations and development needs of each person.

Tokyo Electron (TEL) has set its vision to be “A truly global company generating high added value and profits in thesemiconductor and flat panel display industries through innovative technologies and groundbreaking proactive solutions
that integrate diverse technologies.” To realize this, each employee must be able to strike a balance between their workand private life, so that synergy is created between employees and the company to enable each to grow.
Based on its global human resources system, TEL is promoting the creation of an environment to enable employees
to both improve their basic skills and grow while striking a balance between their work and private life. TEL works toenhance and offer an education program whereby employees can learn business skills adapted to their individual level,
aims, and schedule. TEL provides a skill map whereby employees can grasp the business skills expected of them, a skills
development guide that summarizes the importance of learning and techniques for learning, and a course guide thatoutlines details of lectures offered in order to support each individual in proactive study.

Global human resources system
The global human resources system, introduced in 2017, considers the role each individual is expected to play and theircareer, to encourage proactive contribution to improving the corporate value of TEL. In order to achieve this, the systemclarifies individual roles and responsibilities, and allows absolute evaluation of the level of achievement by individuals
against goals set, to facilitate more acceptable remuneration.
By evaluating the autonomous challenges of employees, TEL is able to make their treatment more transparent, as thecompany strives to nurture an organizational culture with dreams and vitality where individuals who proactively accept
challenges without fear of failure can flourish.

Encouraging leave-taking
In order to enable employees to continue working while taking sufficient leave,
TEL strives to correct long work hours and aims to enhance the leave system,and promote leave-taking.
In fiscal year 2019, TEL set a target of 70% annual leave-taking, promoting
management to improve leave-taking rates through initiatives such as fiveTake-up rate of annual paiddays planned leave every six months, regular monitoring of annual leave-taking
leave (global)
status, and encouraging awareness of planned leave-taking, resulting in leavetaking rates of 67.2% in Japan and 80.9% overseas during fiscal year 2019.
In addition, TEL has introduced a unique refreshment leave system. It aims toprovide refreshments for employees and to thereby boost their motivation towork. The system grants special (paid) leave from two weeks to one month of service to employees who have worked formore than 10 years. In fiscal year 2019, 605 employees in Japan took refreshment leave, and 473 overseas.

72.5%

Manager programs
The role of managers is important for enabling value creation by each individual. In fiscal year 2019, the company
conducted group training for newly appointed managers, incorporating third-party assessment and other elements inorder to nurture the practical skills and mindset required for managers, including the development of subordinates, selfreflection, and personnel evaluation.

Step-up activities
TEL implements step-up activities for about six months from the summer of each employees’ second year in thecompany, to encourage autonomy among junior employees. Junior employees set their own themes and targets in theworkplace while planning activities, which they advance, that provide opportunities to develop learning and awareness ofgrowth. This is done with the involvement of their superiors and colleagues.

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TOKYO ELECTRON SUSTAINABILITY REPORT 2019TOKYO ELECTRON SUSTAINABILITY REPORT 201936

People and workplacesChildcare and nursing systems

Stress checks

Percentage of those who

In order to allow each employee dealing with childcare and nursing to adopt
returned to work after childcare
leave (Japan)
a flexible approach to work according to their individual lifestyle and stage inlife, TEL has established a support system, in addition to that which is legallydefined. In Japan in particular, we are working to enhance work styles for
employees.
In addition to allowing extension of the childcare leave period until the child reaches three years of age at the longest,
TEL also expanded measures to reduce working hours for childcare to employees raising children until their graduationfrom elementary school. We have also established leave to care for a sick or injured child and childcare support leave. As aresult, in Japan, we have achieved a return to work rate of 93.5 %, and 41 % of female TEL employees are working mothers.
Furthermore, in addition to allowing paid nursing care leave up to the fifth day, we are also improving the nursing caresystem to make it possible to take nursing care leave three times per person requiring care and to allow nursing care leaveof a total of one year.

93.5%

Within Japan, TEL has implemented comprehensive measures for mental
Stress check take-up rate
(Japan)health. Using a questionnaire recommended by the Ministry of Health, Labourand Welfare, employees complete a stress check once a year, and if determined
to be under high stress, they are put in contact with an occupational healthphysician or public health nurse for in-depth face-to-face support as stipulated
under law. In addition, the company also implements thorough mental support
for employees whereby those who wish to may meet for discussion with an occupational health physician or publichealth nurse in the form of a health consultation. The company also undertakes organizational analysis to deal withorganizations which have a comparatively heavy burden.
During fiscal year 2019, the stress check was taken by 92.2% of employees in Japan.

92.2%

Self-care platform
We have introduced the Pep Up personal healthcare platform, enabling employees to check the results of their medical
checkups quickly, and to understand their daily health management data, such as weight, blood pressure, and body fat
ratio, as well as their health age.1 Using this platform, we hold walking events, and distribute activity trackers to help
employees in managing their diet and exercise.

New work styles
TEL is continuing to seek new work styles for employees. In addition to introducing a flextime system, we are testing a teleworking
system that enables employees to utilize time more effectively by eliminating commuting time at Tokyo Electron Headquarters.

Safety management framework

Health and productivity management promotion
So that employees can realize a fulfilling life’s work, and at the same time,
contribute to the advancement of TEL’s business by harnessing their full
capacity, it is important that every employee can maintain their health anddynamism while at work. By putting systems in place, we strive to build anenvironment where employees can work with peace of mind.
In acknowledgment of these initiatives, TEL was recognized as a White
500 company under the 2019 Certified Health & Productivity Management
Outstanding Organizations Recognition Program.1 Taking advantage of thisopportunity, we will continue to promote global initiatives with each TELGroup company to drive efforts to improve the health and productivity of its
employees.

1
Certified Health& Productivity
Management
Outstanding
Organizations
Recognition Program:
The program
publicly recognizes
particularly outstandingorganizations thatare practicing healthoriented business
management, basedon initiatives attuned
to local health-related
challenges and on
health-promotion
initiatives led by the
Nippon Kenko Kaigi.

Health and safety
Support systems for health
TEL has built systems that are mindful of employee health. Besides conducting various medical checkups in accordancewith the law, TEL also offers face-to-face consultations by designated occupational health physicians for employees who
work long hours. We have also set up health help desks supported by occupational health physicians so that employees
and their families can seek advice if they have any health issues to discuss. TEL also offers counseling services supported
by external industrial counselors if requested by an employee. Regular “line-care”2 seminars are also held, targeted at line
managers.
In fiscal year 2019, in order to strengthen its support structure, we held liaison meetings with the designatedoccupational health physicians at each company to share information on current issues faced by the TEL Group. In the
future, we will continue to steadily carry out initiatives to resolve these issues.

2Line-care: A workplacemeasure for mental
health, in which
managers andsupervisors take a leadrole in responding torequests by workers
for advice, with anaim of improving theworkplace environment

Based on a culture of “Safety First,” TEL carries out ongoing activities for safety promotion. In its effort to raise theoverall level of safety and occupational health, TEL uses a management system based on OHSMS2 to manage safety andoccupational health and follows the PDCA cycle, to reduce the potential risk of work-related accidents. Moreover, by
sharing information of any issues with the EHS council and the manufacturing company presidents’ council, the company
promotes safety management as a company-wide initiative.

Activities for safety
Total case incident
At each factory and office, monthly safety and health committee meetings
rate (TCIR)
are held to discuss measures for any workplace safety or employee healthissues and to conduct safety inspections. TEL has also set up a system forautonomous problem-solving at manufacturing sites, with safety inspections
by representatives from appropriate departments at least once per month.
Before starting work at TEL manufacturing sites, the details of the job and the risks are shared with all workers
involved, and they each increase their awareness in an effort to prevent accidents. In addition, effort is also being
directed to safety managers giving advice on how to manage hazards, as well as to make workers stop work and takecorrective action in the event of an unforeseen incident while on the job.
In addition, TEL is implementing two education programs globally for the establishment of safe work environments.
TEL’s program on basic safety targets all employees and is provided as introductory training for new hires as well as
refresher training every third year of employment. In total, more than 50,000 employees have completed this program.
Our other program, advanced safety, targets employees working in cleanrooms and on production lines. Participants
are required to complete the course every year. Some portions of rules pertaining to safety are based on Japanese law,
therefore when employees are transferred overseas, they undertake training regarding any differences in a language thatthey understand, with the aim of standardizing the company’s education.
To eliminate accidents, TEL also provides risk assessment training and web-based training at offices and factories inJapan and overseas. Finally, we also provide safety information to suppliers as part of support for initiatives to prevent
accidents.
As a result of having maintained a high priority on creating safe work environments, TCIR3 has been maintained at or
below the company’s target of 0.5, with 0.20 in fiscal year 2019.

0.20

1
Health age: An indicatorshowing risk of lifestylediseases, calculated
based on the resultsof an employee’s
medical checkup. The
difference in years withthe employee’s actual
age is displayed, helping
them understandtheir equivalent age interms of their healthconditions.
2
OHSMS (Occupational
Health and Safety
Management System):
A management system
to improve the overalllevel of safety andoccupational health3
TCIR (Total Case
Incidence Rate): The
number of workplace
accidents per 200,000
work hours

Wellness declaration
Accident reporting system

Based on the wellness declaration announced in 2012, we have promoted theimprovement of employees’ exercise habits based on a program of Eat-RestWalk-Talk. In regards to the “Eat” aspect, the renovated company cafeteria at
Fuchu regional office offers healthy food choices. In addition, nine of our plants
and offices in Japan offer activities to support daily health development, such as
body composition measurement sessions.

If a safety-related accident occurs, the information is shared with related parties and persons in charge through theaccident reporting system, creating a system which resolves issues and leads to the proposal of measures to prevent
reoccurrence.
In fiscal year 2019, the company commenced operation of TEL Incident Report System (TIRS), a newly developed
accident reporting system, to further improve the accuracy of report content.
Company cafeteria at Fuchu Technology Center
incorporating SDGs colors

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