Report Review

Takatoshi Yamamoto
Outside Audit & Supervisory Board Member,Tokyo Electron Limited

Comments on Tokyo Electron Sustainability Report 2016
Company stakeholders expect business to thrive and grow with society in a sustainable manner. Corporations are nowadays
requested to improve medium- to long-term corporate value by leveraging their business activities and company resources
to contribute to the resolution of current social issues. To attain these goals, we must generate new value through a cycleof CSR activities that builds on itself and becomes even more competitive in the global market. The nature of CSR programs
is shifting these days, from a passive set of activities to a proactive program based on societal needs. The thinking behind
this approach is that by seamlessly integrating business operations with CSR, social contribution and profitability can beachieved simultaneously.
To emphasize TEL's new focus on sustainable development and growth that is aligned with society, the title of this reporthas been changed from “Environmental and Social Report” to “Sustainability Report.” The report includes a descriptionof the medium-term management plan formulated under the leadership of our new management team. The planoutlines TEL's business goals up to fiscal year 2020. The report also clarifies the relationship between the medium-term
management plan and various social issues surrounding our business. It lists a revised set of key issues and provides asimple overview of the goals and activities of each department.
TEL chose five key issues for this fiscal year: “Product competitiveness” , “Customer responsiveness” , “Earnings power” ,“Maximizing dreams and drive” , and “Establishing sustainable operations.” The first three of these come from the medium-term management plan. A total of 15 themes and 16 goals have been established under these key issues, and we have been
pursuing these goals. The themes and goals that fall under “Establishing sustainable operations” are especially important,as they include corporate governance, compliance and ethics, safety, environmental management, and supply chain
management―items that are essential to the enhancement of corporate value. We hope to share our progress on theseobjectives with all employees and ultimately to achieve the goals through our united efforts.
Our business operations and CSR initiatives cannot be successful without strong stakeholder communication and engagement based on mutual trust. As we put our corporate philosophy into practice, we are aware how essential CSR is forenhancing our corporate value in both financial and non-financial terms. Just as we must engage in investor relations (IR)activities in the capital markets, we must keep our shareholders and other stakeholders well informed about both our basic
position with CSR and the specific activities we are pursuing. This includes our CSR policy, the internal promotion system,
our CSR goals, and company results. We believe such communication will give the stakeholders a deeper understanding of
our CSR management overall.

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TOKYO ELECTRON Sustainability Report 2016

Awards and recognition

Main awards and recognition received in fiscal year 2016
CategoryBusiness
partner

Product

Environment/
safetyCommunication/societyAward received * Awards received in fiscal year 2017

SponsorRecipient＊

Excellent Service In F10 Expansion

Taiwan Semiconductor Manufacturing Co., Ltd.

TELBEST PARTNER OF THE YEAR

SK hynix Inc.

TEL

TowerJazz’s 2015 “Most Reliable Tool Set”
Supplier of the Year Award

Tower Semiconductor Ltd.（TowerJazz）

TEL

2015 Partner Award

Fuji Electric Co., Ltd.

TELBest in class

SanDisk Corporation

TEL

Outstanding Support Award

WIN Semiconductors Corporation

TEL

2015 SCQI AwardIntel Corporation

TEL

Partnership Award

Yokkaichi Operations, Semiconductor & Storage
Products Company, Toshiba Corporation

TELBest Supplier Award 2015

Skyworks Panasonic Filter Solutions Japan Co., Ltd.

TELAppreciation Award*

United Microelectronics Corporation

TET

Supplier Excellence Award*

Texas Instruments Incorporated

TEL

AUO Global Partner Summit 2016 Award*

AU Optronics Corporation

TELBest Supplier Award

LG Display Co., Ltd.

TELSpecial Contribution Award*

Xiamen Tianma Micro-electronics Co., Ltd.

TEL

Semiconductor of the Year Excellence Award in
the semiconductor manufacturing equipment
category
EXIM™ sputtering system for next-generation
semiconductors

Sangyo Times, Inc.

TEL

Minnesota Safety Council Governor's Safety Award*

Minnesota Safety Council

TEF

CDP Disclosure Score: 94
CDP Performance Score: B

CDP

TEL

The 19th Nikkei Environmental Management
Survey: Ranked 23rd

Nikkei Inc.

TEL

Certificate of appreciation: For supporting theTohoku Forum for Creativity and establishing theTOKYO ELECTRON House of Creativity

Tohoku University

TEL

FTSE4 Good Global IndexFTSETELThe Sustainability Yearbook 2016
Yearbook Memberand Industry Mover

RobecoSAM AGTELMSCI ACWI ESG Index andMSCI World ESG Index

MSCITEL

2015 Internet IR Excellence Award

Daiwa Investor Relations Co., Ltd.

TEL＊ TEL: Tokyo Electron Limited / TET: Tokyo Electron Taiwan Limited / TEF: TEL FSI, Inc.

TOKYO ELECTRON Sustainability Report 201649