Comments from a Third-Party Expert
I have read the Environmental and Social Report 2014 ofTokyo Electron Limited (“the Report”) and present the following
comments as a third-party, taking into account my observations
concerning last year’s report.

Priority CSR issues

One feature of the Report is a clear statement at its beginningof priority CSR reporting issues from the perspectives ofstakeholders and business continuity and explanations of specificdetails. This shows the reader that TEL places a high priority
on the soundness of its financial footing, corporate governance,
information security, and product quality. Reinforcement offundamental organizational systems, in other words effective
governance systems, is crucial for addressing these CSR issues.
Governance is a decisive element of an organization without
which CSR measures cannot be undertaken. Accordingly, it
is commendable that TEL substantially increased reporting
dedicated to explaining its corporate governance policy. Readers
will understand that CSR programs are not just incidental tomanagement, but are a core aspect of management principles
and policies and will see the importance of organizational
development from reading about these priority issues. At the endof the Report, TEL’s current progress towards its CSR targets
and its many completed goals are clearly presented to the reader.

Initiatives concerning employees

Employees play important roles in addressing priority issues
and achieving targets. However unlike other managerial
resources, employees cannot be placed under the influenceof market principles. For this reason, the Report discusses thedevelopment of work environments that are beneficial for all
employees and skill development and explains the status ofthose measures. TEL has set a target of 20% foreign nationals
within recent-graduate hiring, but measures concerning thistarget were still underway during the year under review sofurther reports in the future are desirable. As TEL continues tomove toward globalization, I believe that TEL should consider
increasing disclosure concerning changes in workforce
composition, details concerning foreign employees, the ratioof male and female employees and managers, measures toaddress the shrinking workforce and population, the statusof overtime work, and financial policies including retirement
pay, pensions, and stock options. TEL has an extremely highretention rate of 94.2% three years after hiring, indicating thatits employee initiatives are effective, and that this will likely havea positive impact on addressing priority issues.

Environmental initiatives

TEL has set goals and has already taken measures with a
global outlook to address environmental issues such as climatechange, depletion of water resources, and waste. In response
to climate change in particular, TEL set a goal of halving energy
consumption in its major models by fiscal 2015, but goal wasachieved ahead of schedule in fiscal 2014, a noteworthy
accomplishment. TEL also achieved reductions in energy
consumption per unit of production at nine of its 14 major
plants, but total company-wide carbon dioxide emissions fromenergy sources increased 11% to 157,000 tons as a result of
an increase in the number of overseas plants and higher power
emissions factors. I expect that TEL will include its overseas
plants in its comprehensive environmental management in thefuture.
TEL plans to combine with an American company, and it is likelythat there will be a review of its CSR structures in the future.
At that time, TEL should strive to maintain and enhance thesuccessful CSR systems that it has established and to report
the details to its stakeholders in an accessible manner so that it
can gain the trust and understanding of the public.

(This third-party comments does not constitute an opinion on the accuracy orcompleteness of the information contained in this report.)

Yoshito Nakamura

Certified Public Accountant
Adjunct Instructor of Toyo University andthe Open University of Japan
Chairman of the Evaluation Committee for
Independent Administrative Institutions,Japanese Ministry of Defense
Auditor of the Supporting Organization of JOCV
Auditor of Foundation for Accounting Researchin Construction Industry

Response to the Third-Party Comments
We are deeply grateful to Mr. Nakamura, who has provided us
guidance by presenting these third-party comments since the2010 Environmental and Social Report. His insight has helped
us to steadily implement our Group’s CSR activities.
In response to comments we received last year, this year’s
report includes information regarding the relationship between
CSR activities and corporate governance systems, thedevelopment of systems overseas, and the status of progress
regarding those systems. In addition, this year we identified
priority CSR reporting issues and prepared this report based on
those issues.

We are aware that the employee initiatives andcomprehensive environmental management that includes
overseas plants are also key issues, and we will continue toaddress them.

Toshiya Matsuda

Director
Corporate Environment
Promotion Dept.
Tokyo Electron Limited

Moyuru Yasuhara
Director
Corporate Branding
Promotion Dept.
CSR Promotion Dept.
Tokyo Electron Limited

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