Human resource management

People andworkplaces

Approach to human resource management
For Tokyo Electron (TEL), corporate growth is about people. Employees are a foundation for creating value. Our aim
is for both the company and employees to grow together by engaging each employee at work, and linking this toincreased productivity for the company as a whole. Specifically, we focused on: (1) improving employee development
and engagement, such as through promoting support for career development, encouraging them to stretch themselves,and providing opportunities for skill and leadership development, (2) improving productivity through developing
the workplace environment, such as by using IT for better operational efficiency and promoting smart work, and (3)attracting outstanding talent such as through employer branding, strengthening partnerships with universities and labs,
and promoting internships, including international ones. To expand these initiatives effectively, human resources function
has deployed a team supporting business on a global level.

Diversity and inclusion (D&I)
Systems and initiatives

Medium-term goals

Maximize dreams and drive
While conducting sustainable operations, it is also important for companies to meet new demands of society from people andworkplaces' perspectives, such as responding to workstyle reforms and employing people with diverse values. Based on therecognition that people are the source of a company’s growth, Tokyo Electron deeply appreciates the new value created byindividual employees exercising their capabilities, while respecting their individuality and values and encouraging work styles
in sync with their respective lifestyles. In addition to developing a common global human resource system, placing the right
personnel for the right job across countries and regions, and implementing employee performance evaluations that are fair andhighly transparent, by working to strengthen human resource development programs and to promote health and safety, we
strive to nurture employees full of vitality and develop inspiring workplaces.

Main activities

SDGs initiatives■ By globally promoting a highly transparent human resource
system, together with fair hiring and compensation, strive tofacilitate rewarding, human-focused employment (decent work)

Human resource
management

Diversity andinclusion

Work-life balance

Employee
growth■ Proactively develop work-life balance, diversity, and inclusion, andpursue equality among people and in the workplace

Employee growth

Health and safety■Human resource management
Approach to human resource management■Diversity and inclusion (D&I)
Systems and initiatives

Global human resources system
Good health andwell-being

Decent work andeconomic growth

Reducedinequalities

Partnerships for thegoals■Employee growth
Global human resources system, Human resource development
concept at TEL UNIVERSITY, Human resource development system■Work-life balance
New work styles, Encouraging use of leave, Childcare and nursing
systems, Employee life support■Health and safety
Health and productivity management promotion, Activities forsafety, Incident reporting system, etc.
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TOKYO ELECTRON SUSTAINABILITY REPORT 2020

It is important for Tokyo Electron (TEL) to expand its business globally andaddress social changes and diversifying needs by creating new value andcontinuing to grow. To achieve this in situations where there is diversity, notjust in gender, disability, nationality, or other personal circumstances, but also
different work styles and stages of life, it is essential we have an environment
where personnel can exercise their capabilities and tackle challenges whilestaying highly motivated. To provide all employees with a “pleasant workplace
where anyone can work with strong motivation,” we respect and promote D&I.
D&I Talk
In July 2019, we launched the Global D&I Council, and at a meeting heldthat December attended by members from Japan and overseas, we formulated a D&I vision and slogan for the entire TELgroup. At the meeting, the topic of D&I for the TEL group was again taken up for discussion, and we reaffirmed that it is
not just about gender, but is a more inclusive endeavor.
To realize a workplace where diverse employees have a better understanding of each other and can play an active role,
we have been implementing harassment prevention education and awareness activities globally. In January 2020, we
held a D&I Talk event at our headquarters in Akasaka. The event included guest speakers and a panel discussion, and waswell attended by employees. The event was streamed live to business sites in Japan and overseas in an effort to raiseawareness for D&I among all employees in the TEL group. The Employee Resource Group (ERG) has also been launched,and is promoting initiatives whereby the company supports employees with interest in D&I, voluntarily planning andadministering activities designed to contribute to the community and reform the corporate culture. Looking ahead, we
will work to further promote D&I throughout the entire TEL group, by formulating a three-year plan ending in 2022, androlling out initiatives tailored to the actual circumstances at each of our business sites in Japan and overseas, such as
expanding our training programs and organizing events.

The globally integrated human resources programs introduced in fiscal year 2018 clarify the roles and responsibilities ofeach employee in order to effectively support talent management. In coordination with development programs, Tokyo
Electron (TEL) supports the career development and growth of our employees by presenting the skills required for a job in
the TEL group, the knowledge they should/can acquire, and a description of expected duties at higher levels. We are also
working to build workplaces where diverse individuals can flourish, by conducting talent assessments across countries
and regions, realizing fair total rewards for employees, and utilizing a performance management system and a global
common human resource system.

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People and workplaces
Work-life balance
New work styles

Human resource development concept at TEL UNIVERSITY
TEL has established TEL UNIVERSITY as an in-house educational establishment, helping employees to independently
build their careers and realize their personal goals for their growth and development. Our aim is to stand shoulder toshoulder with each employee, supporting their self-growth and fruitful career development throughout their working
life, and create a foundation that enables the organization and individuals to trust each other and grow. TEL UNIVERSITY
plays an important part in employees realizing TEL’s vision of being “a truly global company generating high added value
and profits in the semiconductor and flat panel display industries through innovative technologies and groundbreaking
proactive solutions that integrate diverse technologies.” Through the following four initiatives, we are focusing on
employee growth that leads to corporate growth.
First is the provision of personalized learning opportunities. Since each employee’s growth is different, we are putting
effort into the practice of on-demand education1 as a mechanism that allows individuals to learn as they want, when theywant and according to their own needs. In addition to group training, by proactively utilizing e-learning programs, we areproviding opportunities for employees to learn from any location.
Second is support for career development. We are expanding programs designed for employees to quickly acquire basic
skills according to their different levels and goals through our global human resources system. Effort is being put into
providing information and tools so that employees can gain a more concrete image of their own learning, experience, andcareer development.
Third is leader programs. In nurturing the next generation of leaders to support TEL’s future, we are globally expanding
our succession programs to identify and systematically nurture staff to take on the role of realizing medium- tolong-term improvement of corporate value. Selected next generation management candidates are provided growth
opportunities with an eye to the future, through participating in external training, building networks outside thecompany, and cultivating a broader perspective.
Fourth is the provision of global learning opportunities. For employees to acquire skills related to their duties and to
gain a broader insight, we encourage them to actively participate in both internal and external seminars. Besides training,
we are also considering a study abroad program for fiscal year 2021. Furthermore, we are moving to standardize ourcore programs on a global basis so that employees are able to learn using consistent TEL group content and guidelines
regardless of whether they are in Japan or overseas.

1
On-demand education:
Education programs
that allow employees
to learn at the own
convenience, anywhere,anytimeEncouraging use of leave
Based on the belief that taking appropriate leave and properly managing work
hours also contributes to better employee productivity, TEL strives to correct longwork hours, and aims to enhance the leave system and promote taking leave.
Since fiscal year 2019, we have set an annual target of 70% annual paid leave
use, and have promoted employee awareness for planned use of leave. We are
Take-up rate of annual paid leavealso promoting regular monitoring of leave use status and urging management to(overseas)
improve leave use rates, ensuring that five days of compulsory annual leave aretaken as required by law since April 2019. As a result, leave use rates were 72.6% inJapan and 81.2% overseas during fiscal year 2020.
Our goal is to provide refreshment for employees and thereby to boost theirmotivation to work. The system grants special (paid) leave from two weeks to one month per five years of service toemployees who have worked for more than 10 years. In fiscal year 2020, 901 employees in Japan and 514 employees
overseas took refreshment leave.

81.2%

Childcare and nursing systems

TEL provides programs adapted to different levels and goals for employees to gain world-class knowledge and skills.
We are also providing opportunities for employees to improve their understanding and to acquire knowledge on thelatest trends in TEL’s core technologies by running ongoing skill enhancement training and holding technical workshops
for skills acquisition.
Corporate education system (TEL UNIVERSITY)

Executives

Leaders

Mid-level
employees

Junior employees
New employees

Introductory programs (new graduates, mid-career recruits)OJT2 programs (new graduates, mid-career recruits)
Level-based programs

Manager programs

Mid-level employees

Leader programs
Compulsory WBT3

Junior employee programs

Percentage of those who
returned to work afterTEL respects the various lifestyles of its employees and is investing effort
childcare leave (Japan)
into providing an environment where each employee can thrive. In addition,
to the system made available by existing laws, we are independently
building a substantial framework that allows employees to adopt a flexible
approach to work that accords with diverse life events such as raisingchildren or caring for family members.
With regard to the situation in Japan, we have acknowledged the maximum extension of the childcare leave period tothe day a child reaches three years of age, as well as expanding our provision of a reduced working hours program forchildcare to include employees rearing children as far as graduation from elementary school. In addition to leave to care
for a sick or injured child, we are enriching the provision of support through establishment of our own childcare leave,
etc. As a result, currently in Japan, 42% of female TEL employees are working mothers. To further our support for thecompatibility of work, and nursing care, nursing care leave on full pay is available for up to five days. We are advancing
improvement of the system, for instance, by allowing nursing care leave to be taken up to three times per person
requiring nursing care for a one year in total.

94.1%

Human resource development system

Management

Tokyo Electron (TEL) recommends work styles that incorporate work-life balance, and is continuously developing work
environments to enable this. We are promoting efficient ways of working suited to our employees' lifestyles, such as
reducing commuting time and making the most of work hours, by introducing a teleworking system in addition to aflextime system.

2
OJT: On the Job Training
3
WBT: Web Based Training

Employee life support
TEL is enacting a diverse range of support toward achieving a workplace environment where employees can work
energetically while each making full use of their abilities. We present regular opportunities for employees aged 50 or over
to attend seminars providing necessary information and review of financial planning, encouraging them to consider their
way of working after retirement. Furthermore, we support employees’ everyday lives by offering assistance to all age
groups on familiar topics such as nursing care for family members and inheritance.

Business skills
Goal-based programs

Global communication
Employee life support
Technical programs (seminars & workshops)

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People and workplaces
Health and safety
Health and productivity management promotion
Having every employee lead a fulfilling life’s work and achieve their maximum performanceis also important for the future advancement of Tokyo Electron (TEL). To create healthy andcomfortable workplaces for employees, we are working to further develop our systems.
Besides conducting various medical checkups in accordance with the law, we also offer
face-to-face consultations by designated occupational health physicians for employees
who work long hours. Health help desks supported by occupational health physicians canalso be accessed by workers’ families, and we also offer counseling opportunities supported
by external industrial counselors for those who ask. Furthermore, we are working onstrengthening health-related support, organizing regular “line-care1” seminars aimed at management, and, where necessary,
holding liaison meetings with the health officers and health professionals at each TEL group company.
Based on the “collaborative health2” concept, in cooperation with the Tokyo Electron Health Insurance Society, we are
actively expanding data health3 initiatives, providing employees health guidance and effective prevention and healthpromotion according to their individual circumstances by utilizing data from medical checkup tests. As a result, we helped
raise the health literacy of employees in fiscal year 2020, demonstrated, for instance, by an increase in the percentage of
employees receiving specific health guidance4.
Furthermore, during fiscal year 2020, following a widening of the scope from the previous year, all TEL groupcompanies operating in Japan received recognition as a White 500 company under the 2020 Certified Health &Productivity Management Outstanding Organization Recognition Program5. We will continue to promote various
initiatives at the global level to maintain and improve our employees' health.

Wellness declaration
Based on the wellness declaration announced in 2012, TEL has promoted a variety of initiatives addressing health issues
from the perspectives of Eat-Rest-Walk-Talk. Specifically, these include body composition measurement sessions6, healthcounseling workshops, and walking events, healthy food choices offered at company cafeterias, and smoking cessation
advice. In addition to raising employee awareness for health promotion in their daily lives, we provide support leading to
implementation of the wellness declaration.

Stress checks
Stress check take-up rate
In terms of mental health management, employees in Japan complete a stress(Japan)check once a year using a questionnaire recommended by the Ministry of
Health, Labour and Welfare. Occupational health physicians or public healthnurses meet and talk with employees who, as a result of the questionnaire,
are determined to be under high stress, as well as any other employees who
ask. We also strive to ensure thorough mental support for our employees, such as by utilizing organizational analysis andpromoting improvements in organizations which have a comparatively heavy burden. During fiscal year 2020, the stresscheck was taken by 92.9% of employees.

92.9%

Self-care platform
TEL has introduced the Pep Up personal healthcare platform as a means of health management. The platform helps
employees care for their own health by enabling them to easily check their blood pressure, weight, body fat ratio, andhealth age7 using the results of their medical checkups. Through Pep Up, in addition to providing information related
to their own health condition, and holding walking events, we also distribute activity trackers so that employees canmanage their exercise and calorie consumption.

1Line-care: A workplacemeasure for mental
health, in which managers
and supervisors take alead role in responding
to requests by workers
for advice, with an aim of
improving the workplaceenvironment
2Collaborative health:Situation where acompany actively
cooperates with aninsurer, such as a healthinsurance society, toeffectively and efficiently
promote the health of
its employees and theirfamilies
3
Data health: Refers
to a more effective
and efficient healthcare program which
is implemented in linewith the health status
of insured persons, byutilizing and analyzing
the health and medical
information heldelectronically by the
medical insurer
4
Specific health guidance:
Health guidance provided
for reducing the numberof people with metabolic
syndrome (visceral fat
syndrome) or at risk ofmetabolic syndrome, andfor the early detectionand early treatment oflifestyle diseases andcancer, etc.
5
Certified Health& Productivity
Management
Outstanding
Organization Recognition
Program: The program
publicly recognizes
particularly outstandingorganizations thatare practicing healthoriented business
management, based on
initiatives attuned to local
health-related challenges
and on health-promotion
initiatives led by the
Nippon Kenko Kaigi
6
Body composition
measurement session: An
opportunity to measureskeletal muscle massand body fat mass using
a body composition
monitor, for the
purpose of preventing
lifestyle diseases andunderstanding one’s own
physical condition

Safety management framework
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 OHSMS1 to manage safety andoccupational health and follows the PDCA cycle, to reduce the potential risk of work-related incidents. Moreover, by
sharing information of any issues at internal meetings, such as those of the EHS Council and the Manufacturing Company
Presidents’ Council, the company promotes safety management as a company-wide initiative.

1
OHSMS (Occupational
Health and Safety
Management System): A
management system toimprove the overall levelof safety and occupational
healthActivities for safety
On-site safety inspections
At each factory and office, monthly safety and health committee meetings are held to discuss measures for any
workplace safety or employee health issues 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.
Risk assessment and stop work authority (SWA)
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 incidents. 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 take corrective action in
the event of an unforeseen incident while on the job.
Safety education
In addition, TEL is implementing two education programs globally for theestablishment of safe work environments. First is TEL’s program on basic safety
TCIRtargeting all employees. This is provided as introductory training for new hires
as well as refresher training every third year of employment. More than 6,000
employees completed this program in fiscal year 2020. Our second program,advanced safety, targets employees working in cleanrooms and on productionlines. Participants are required to complete the course every year. Some portionsof rules pertaining to safety are based on Japanese law, therefore when employees are transferred overseas, they
undertake additional necessary training in a language that they understand, with the aim of standardizing education.
To eliminate incidents, TEL also provides online training and risk assessment training for employees in Japan andoverseas. Also, to expand the concept of safe equipment design2 to our design, manufacture, and service operations, inaddition to online training on equipment safety, we also hold a semiannual seminar at each factory and office, inviting
an external guest to speak. Finally, we also promote our initiatives to prevent accidents, by providing our suppliers andcustomers with safety information as circumstances demand.
As a result of having maintained a high priority on creating safe work environments, TCIR3 has been maintained at lessthan the company’s target of 0.5, with 0.23 in fiscal year 2020.

0.23

2
Safe equipment design:
Refer to p. 25.
3TCIR (Total Case
Incidence Rate): The
number of workplace
incidents per 200,000
work hours

Incident reporting system
If a safety-related incident occurs, the information is shared with related parties and persons in charge through theincident reporting system, creating a system which resolves issues and leads to the proposal of measures to prevent
reoccurrence.
Since fiscal year 2019, we have been operating the TEL Incident Report System (TIRS), a newly developed incident
reporting system, to improve the accuracy of report content further.

7
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.

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