Foreword The scars of the damage from the Great East Japan Earthquake are still in evidence in the affected areas, and the course of the catastrophic situation at the Fukushima Daiichi Nuclear Power Station is still unpredictable. This unprecedented disaster impressed upon us all over again the preciousness of the natural environment and the importance of the social infrastructure. It is prompting even stronger demands for safety and security as regards the social infrastructure supporting modern life, as well as calls for conversion of modes of energy utilization. Because of occurrences such as damage to plants and suspension of physical distribution, the disaster severed various supply chains. As of the present, however, facilities and services have been largely restored—a fact which afforded another glimpse of Japan’s depth in “monozukuri” (the art of manufacturing). Our plants in Koriyama and Utsunomiya (in Fukushima and Tochigi prefectures, respectively) are sited in affected areas and some of their production facilities were impacted by the disaster, but all of the employees were fortunately unharmed. We managed to resume production early (shortly after the disaster struck) through a concerted companywide effort rooted in determination to discharge our supply obligations as a business. We are keenly aware of our role as a company manufacturing products which are key components of major social infrastructures. With a view to fulfilling our social responsibilities, we are practicing business activities for supply of products that are endowed with higher levels of safety and security, and also alleviate environmental burden. Taking up the challenge of key technology for the low-carbon society Since fiscal 2008, we have constantly been pursuing structural reform of our business and striving for the “Rebirth of TOK” in order to achieve sustained growth. In fiscal 2010, we executed measures of reform adapted to changes in the business environment, such as the transfer of our printing material business. Around the world, there are mounting needs for the spread of clean energy. In the field of solar cells, which are a form of clean energy, TOK too provides materials for silicon crystal cells and is engaged in joint development with IBM in the area of manufacturing processes for compound solar cells. Furthermore, in addition to the environment-friendly products we have developed so far, we are working to expand sales of a wafer-handling system for processing through-silicon vias (TSV), which are coming to the fore as a new technology for raising levels of semiconductor integration while saving power consumption. In these and other ways, we are taking up the challenge of creating key technology for building the low-carbon society. Promotion of CSR management In Japan, this summer has seen requests for curtailment of power use by large customers (business establishments with contracts for supply of at least 500 kW of power) in the service areas of Tokyo Electric Power Company and Tohoku Electric Power Co., Inc. TOK as well has launched a companywide campaign to reduce its maximum power use at peak time by 15 percent. To this end, we are taking a wide variety of steps, including dispersion of production activity days by use of Saturdays and holidays at production plants, use of on-premise power generation systems, installation of power demand monitoring equipment, pasting of heat-shielding film on windows, extinguishment of some lights, and replacement of conventional light bulbs with light-emitting-diode (LED) types. We intend to use these approaches as a vehicle for a fundamental review of our style of work and production activity thus far and examination of ways in which we could better discharge our responsibilities as a member of society. Meanwhile, we realize that proper corporate governance grounded in corporate social responsibility (CSR) is indispensable for achievement of sustained growth as a company and increase in our corporate value. We are consequently committed to tightening compliance with all pertinent laws and regulations, practicing sound management with higher degrees of transparency, and meeting the expectations of all stakeholders. Contributing to social progress and advancement through “monozukuri” On October 25, 2010, TOK celebrated the 70th anniversary of its founding. Ever since our founding, we have endeavored to practice the management principles at the foundation of our corporate behavior, which we have continued to observe over the many intervening years, i.e., continued efforts to enhance technology, ever-higher levels of product quality, contribution to society, and a frank and open-minded business culture. We consider these principles to be the very starting points of CSR management, and plan to continue challenging the creation of new value by applying the fine processing technology we have accumulated to date, so that we can assist progress and advancement in society at large through “monozukuri” into the future as well. We hope we can count on the continued support of all stakeholders for the activities of TOK. September 2011

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