Contents

Editorial Note

Advantest's

Environment

Society

Governance

ESG Data

Sustainability

Society

Employment and Diversity … ……………………………………………………………

49

Human Resources Basic Philosophy… ……………………………………………

49

Efforts to Promote Diversity… ………………………………………………………

49

Employment Data… …………………………………………………………………… 52

Supporting Diverse Working Styles ……………………………………………………

56

Initiatives for Work-Life Balance… …………………………………………………

56

Creating a Workplace with Higher Job Satisfaction… …………………………

59

Employee Engagement…………………………………………………………………

61

Human Resources Development, Fair Evaluation and Treatment ………………

63

Policies Regarding Human Capital… ………………………………………………

63

Efforts to Develop Human Resources……………………………………………

64

Fair Evaluation and Treatment… ……………………………………………………

68

Employee Health and Safety … …………………………………………………………

69

Promotion of Health and Productivity Management……………………………

69

Promotion of Occupational Health and Safety…………………………………

71

Respecting and Protecting Human Rights ……………………………………………

73

Human Rights Policy……………………………………………………………………

73

Efforts in the Workplace………………………………………………………………

74

Community Activities ………………………………………………………………………

76

Taking Responsibility for Our Products … ……………………………………………

80

Supporting Product Safety and Quality……………………………………………

80

Efforts to Improve Customer Satisfaction………………………………………

82

Innovation Initiatives… …………………………………………………………………

85

Intellectual Property Protection …………………………………………………………

88

Supply Chain Management ………………………………………………………………

89

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Employment and Diversity

The second "I" of our core value INTEGRITY stands for inclusion and diversity. We believe that inclusion and diversity can make us even stronger.

Human Resources Basic Philosophy

Advantest respects employees, who are valuable assets to the company, and evaluates them fairly. Advantest is supporting the diverse lifestyles of employees as well as the growth of individual employees so that they grow together with the Company. Advantest established the human resources basic philosophy in September 2000 to protect these valuable assets and enhance their value, and is implementing various human resources measures, such as ensuring fairness and consent and actively supporting human resources development.

Advantest also supports the United Nations Global Compact 10 Principles, Universal Declaration of Human Rights, and Guiding Principles on Business and Human Rights, and is paying adequate attention to these principles of human rights and labor in its business activities.

Advantest's Human Resources Basic Philosophy

Regarding its employees as valuable management resources (assets), Advantest has formulated the following policies for implementing various human resources measures and has been making continuous efforts to achieve them.

  1. Performance-basedpersonnel system
    Advantest will promote a personnel system where employees who overcome difficulties and achieve innovative results by challenging themselves are highly evaluated and fairly treated.
  2. Fairness and consent
    Advantest will ensure that all its policies and systems are objectively fair and gain consent from employees, so that the maximum and optimal results can be achieved with these policies and systems.
  3. Active support for human resources development
    Advantest will actively support employees who make continuous efforts to refine their skills, acquire greater expertise, and broaden their knowledge.

Efforts to Promote Diversity

Active participation of each employee is crucial for a company's sustainable growth. Thus, Advantest has "INCLUSION AND DIVERSITY" as one of its core values. We believe that creating a comfortable and inclusive workplace environment and instilling working practices that maximizes employee capabilities while balancing work and home is imperative to a company. Under this philosophy, Advantest actively works to create a workplace and corporate culture that allows each employee to maximize their capabilities and individuality, and continue to work with great enthusiasm.

Employment and Utilization of Global Human Resources

Advantest has consistently strived for success and growth by attempting to leverage our talented human capital on a global basis. One of the most notable examples of this is the integration of Verigy, acquired in 2011. This integration resulted in a major change in our workforce composition, with nearly half of our employees located overseas at that time. Today, this trend is even stronger, with approximately 60% of our workforce now located in our overseas bases. In the recent years, in order to further expand its business globally, Advantest has been recruiting personnel who have deep cross-cultural understanding and communication skills and can work in a global arena.

For instance, Advantest will continue personnel exchange among group companies so that employees can experience working in a global environment, and share their skills and know-how through routine work and training in each organization so that individual employees can acquire more advanced skills, including skills to adapt to various business environments.

In order to make personnel exchange easier, Advantest has been globally implementing the "Global Transfer Policy," a system that offers fair treatment and enables personnel exchange on a global level, regardless of job type.

In addition, as competition for human resources intensifies on a global scale, we are striving to retain excellent human resources by expanding the scope of stock compensation and grant.

As of July 2023, 13 out of 25 executive officers, who are management personnel, have foreign nationalities, and employees from 10 countries are currently working for Advantest Corporation. Advantest will give fair opportunities to talented personnel, regardless of their nationality, and promote global personnel development and organizational globalization through borderless personnel recruitment and exchange.

Support for Diverse Workstyles Through a Second Job System

Advantest acknowledges diverse workstyles for the sake of our employees' diverse lifestyles and individual growth. As part of this effort, in November 2022, we established rules for second jobs for all employees with the aim of improving employee skills and acquiring and retaining a wide variety of talents.

Advantest has a diverse group of employees with special skills. We believe that second jobs not only provide

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employees with opportunities to improve and develop their skills, but also help to create innovation within the company by giving the company a grip on these talented skills.

On the other hand, second jobs naturally come with risks. For this reason, along with requiring employees to obtain approval to engage in second jobs, the company also requires that both the employee and his/ her supervisor read the manual thoroughly and take an e-learning course to guarantee that they fully understand the precautions before starting a second job.

While due consideration is to be paid to the risks involved, second jobs are attractive not only to employees but also to the company itself as a way to develop and improve employees' skills and produce innovation within the company. We will endeavor to make the system meaningful while developing rules in response to the changes over time.

Promotion and Utilization of Female Employees

Advantest always accepts diverse values and is promoting the creation of a corporate culture where everyone can work regardless of race, gender, age, and nationality.

As of March 2023, the percentage of female employees to total employees is 21.2% (20.8% in the previous fiscal year), and the percentage of female managers to total managers is 9.0% (9.6% in the previous fiscal year). For Advantest Corporation (non-consolidated), the percentage of female employees is 16.1% (16.5% in the previous fiscal year), and the percentage of female managers is 3.6% (3.4% in the previous fiscal year). Although many indices show improvement over the previous fiscal year, increasing the number of female employees and managers still remains an urgent task.

Advantest has been recruiting students with a technical background, which has not motivated female students to take entrance exams for Advantest in recruitment activities. In light of these circumstances, Advantest has been strengthening public relations activities for women with a focus on conveying the attraction of Advantest to female students, particularly those with a technical background. Information on active female employees in the workforce has been disseminated through corporate websites and recruitment brochures, and at recruitment events, Advantest has explained about programs and career plans for women and introduced how our female employees are working at Advantest.

In fiscal 2021, Advantest participated in a roundtable discussion titled "Listening to Young Employees in the Semiconductor Industry", a joint project between SEMICON JAPAN and the manufacturing YouTuber "Monozukuri Taro" and asked one of our female technical employees to share her experiences working at Advantest. This video of a female employee freely offering her opinions on the content of her work creates an opportunity, especially for young people, especially women, to take an interest in the semiconductor device materials industry, including Advantest.

From FY2018, Advantest Corporation (non-consolidated) has set numerical targets to boost the ratio of women in management positions to meet or exceed the industry average based on the Act on Promotion of

Women's Participation and Advancement in the Workplace, and has been making efforts toward this goal. In November 2020, we acquired "Certification level 2 (two stars)" of the 'Eruboshi' certification based on the Act on Promotion of Women's Participation and Advancement in the Workplace. We give consideration to the various changes in female employees' life stages, with a focus on providing support to enable good work-life balance through flexible working styles that correspond to each individual's circumstances.

Advantest will move forward with initiatives to raise the female employee ratio and establish systems for long-term employment toward increasing the ratio of female employees in management positions.

Active Utilization of Senior Employees (Japan)

Following the amendments to the Act on Stabilization of Employment of Elderly Persons in April 2013 and the increase in the minimum age for pension eligibility by the government, Advantest has revised its re- employment program for utilizing employees who retire at the age of 60. Advantest is actively utilizing the skills and know-how of experienced employees by employing senior personnel steadily and treating and assigning them to jobs with consideration towards their past experience and assigned positions during their working years. In addition, Advantest has established a system to reflect each individual's achievements in their wages to motivate senior personnel and expect them to produce results that match their wages. Furthermore, in FY2018, Advantest introduced a system where employees are allowed to reduce their working hours or days as desired and have a second job on non-working days.

In FY2022, of the 44 individuals who started with our re-employment program, one employee is working shorter hours and five are working shorter days. Advantest believes that this system will allow senior personnel to work more flexibly according to their lifestyles, contributing to further enhancing work-life balance.

Example

At Advantest, a senior employee with many years of experience in the Production Unit has begun holding a training course for employees at the Gunma Factory titled "What is a Tester?" since June 2022. When asked of his motives for developing this course, he mentioned that products are increasingly difficult to understand as they have evolved in complexity, and the psychological burden on employees has been swelling due to the spread of COVID-19 pandemic as well as by the challenges faced in parts procurement with production volume increasing rapidly. The senior employee planned the event hoping that by learning about testers, it would teach people the relationship between their own work and products, as well as between products and society as a whole, and ultimately, everyone could find their work rewarding.

The training course is held in small groups, and the style of explanation is based on the level of understanding of the participants, making it an interactive learning experience for both the participants and the organizers. 47 sessions were held by April 2023, with 237 participants, more than half of the Production Unit employees.

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With each session, the program has evolved to make it easier for employees to understand the relationship between their work and the products and how products are beneficial in society. We, too, feel that this has led to improved employee engagement.

From FY2023, employees who have shared their understanding of this activity through the internal newsletter have begun developing their own "What is a Tester?" courses for each of their tasks in and out of Japan.

Trends in the number of employees who use the re-employment program

* Boundary of data: Advantest Corporation (non-consolidated)

Advantest is tallying the number of employees who have started using the re-employment program. (These numbers do not include those who have been using the program since the previous year.)

Employment of the Disabled

In order to promote the employment of the disabled, Advantest established a special subsidiary company, Advantest Green Corporation, in September 2004. Since its establishment, this company has been working to promote stable employment of the disabled under the slogan of "Independence of individuals and growth of society."

Its core business includes landscaping, cleaning, front gate reception work, delivery, baking and sale of bread, and recycling promotion. Advantest Green is providing workplaces where its employees can work comfortably, and is also actively collaborating with local communities and relevant organizations to develop workplaces where disabled and non-disabled people can work together.

Currently, 13 highly motivated disabled employees are working at overseas affiliated companies.

As of March 2023, Advantest's employment rate of the disabled is 2.91%, which exceeds the mandatory employment rate. However, Advantest will continue to actively promote the employment of the disabled to address future amendments to the mandatory employment rate.

Efforts to Explore New Occupational Fields

Advantest promotes initiatives such as standardization of work procedures and work visualization to create a work environment in which employees with disabilities will be able to work to their full potential, and also refer our workplace as one in which people with various disabilities can actively participate to outlets such as special-needs schools. We also actively accept training and visitation requests for employment as well as consider new job categories and more.

Advantest introduced a paper-making machine, which produces new paper from used paper such as rejected documents, in order to launch a business that manufactures and provides items such as copy paper, business cards, and calendars made from recycled paper. We continue to support initiatives that promote employment and contribute to environmental improvement.

For more information on recycling using paper machines, please refer to "Recycling Resources" on the Environment page.

Efforts to Enhance Job Fulfillment

We also foster a culture of mutual respect and recognition by actively implementing initiatives through a goal or commendation system to enhance their motivation, such as "meaningfulness" and "job fulfillment," and established a "Monthly MVP" award system that involves evaluation and praise by others.

Additionally, Advantest assigns qualified staff including job coaches, counselors for the disabled, and career consultants at each workplace, along with conducting regular four-way meetings with support organizations, the company, and family members for early detection and information sharing on issues, in order to offer workplace support catered to the characteristics of employee disabilities.

In FY2021, these initiatives and the many efforts made by our employees over the years were recognized by Saitama Prefecture, and two Advantest Green employees received the President's Award from the Saitama Prefecture Employment Development Association as excellent workers with disabilities.

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Trends in the percentage of disabled employees

  • Boundary of data: Advantest Corporation (non-consolidated) + Advanfacilities Co., Ltd. + Advantest Green
    Corporation

Employment Data

Advantest Group has formulated a basic policy to promise that it respects the human rights of individual employees, eliminate discrimination based on race, gender, age, nationality, religion, social status, disability, disease, sexual orientation, and so on. Advantest is also eliminating discrimination in employment and promotion and actively employing, developing, and promoting personnel who can play a leading role in global situations.

The graph below shows the trends in the number of employees.

Employment data

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Number of employees by region

FY2020

FY2021

FY2022

Percentage of

Percentage by

Male

Female

Total

Male

Female

Total

Male

Female

Total

female

region

employees

Japan

Japan

2,213

490

2,703

2,220

504

2,724

2,256

527

2,783

18.9%

39.1%

Asia

905

290

1,195

959

321

1,280

1,088

372

1,460

25.5%

20.5%

Europe

720

153

873

763

157

920

903

202

1,105

18.3%

15.5%

Overseas

North

756

229

985

1,178

362

1,540

1,363

406

1,769

23.0%

24.9%

America

Overseas

2,381

672

3,053

2,900

840

3,740

3,354

980

4,334

22.6%

60.9%

total

Total

4,594

1,162

5,756

5,120

1,344

6,464

5,610

1,507

7,117

21.2%

* Boundary of data: Advantest Group

Number of managers by region

FY2020

FY2021

FY2022

Percentage of

Number of

Promotion

Percentage by

rate

Male

Female

Total

Male

Female

Total

Male

Female

Total

locally

female

region

recruited

of locally

employees

recruited

employees

employees

Japan

Japan

486

15

501

465

18

483

465

20

485

4.1%

37.5%

484

99.8%

Asia

226

43

269

225

45

270

237

45

282

16.0%

21.8%

272

96.5%

Europe

200

19

219

214

23

237

223

25

248

10.1%

19.2%

243

98.0%

Overseas

North

198

24

222

246

36

282

251

27

278

9.7%

21.5%

269

96.8%

America

Overseas

624

86

710

685

104

789

711

97

808

12.0%

62.5%

784

97.0%

total

Total

1,110

101

1,211

1,150

122

1,272

1,176

117

1,293

9.0%

1,268

98.1%

  • Boundary of data: Advantest Group
  • Definition of managers: Level 7 or higher in the 10-level qualification system. In this 10-level qualification system, Job Levels 1 to 6 are applied to general employees and Job Levels 7 to 10 to managers.

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Number of employees by type

FY2020

FY2021

FY2022

Male

Female

Total

Male

Female

Total

Male

Female

Total

Full-time employees

4,242

1,019

5,261

4,739

1,202

5,941

5,194

1,350

6,544

Non-full-time

352

143

495

381

142

523

416

157

573

employees

Total

4,594

1,162

5,756

5,120

1,344

6,464

5,610

1,507

7,117

* Boundary of data: Advantest Group

Number of employees by age

Age -29

Age 30-39

Age 40-49

Age 50-59

Age 60-

Total

FY2020

FY2021

FY2022

Male

Female

Total

Male

Female

Total

Male

Female

Total

443

156

599

627

215

842

884

262

1,146

793

258

1,051

969

291

1,260

1,088

338

1,426

1,347

334

1,681

1,328

356

1,684

1,325

382

1,707

1,415

228

1,643

1,519

289

1,808

1,581

317

1,898

244

43

287

296

51

347

316

51

367

4,242

1,019

5,261

4,739

1,202

5,941

5,194

1,350

6,544

* Boundary of data: Advantest Group (full-time employees only)

Number of new employees

FY2020

FY2021

FY2022

Percentage of

Percentage by

Male

Female

Total

Male

Female

Total

Male

Female

Total

female

region

employees

Japan

Japan

41

15

56

49

18

67

70

23

93

24.7%

8.1%

Asia

110

30

140

147

45

192

209

60

269

22.3%

23.4%

Europe

58

17

75

67

12

79

188

46

234

19.7%

20.3%

Overseas

North

77

33

110

563

181

744

421

133

554

24.0%

48.2%

America

Overseas

245

80

325

777

238

1,015

818

239

1,057

22.6%

91.9%

total

Total

286

95

381

826

256

1,082

888

262

1,150

22.8%

* Boundary of data: Advantest Group (full-time employees only)

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Employee turnover

FY2020

FY2021

FY2022

Percentage of

Percentage by

Male

Female

Total

Male

Female

Total

Male

Female

Total

female

region

employees

Japan

Japan

13

2

15

21

4

25

25

5

30

16.7%

6.4%

Asia

37

16

53

89

15

104

74

8

82

9.8%

17.4%

Europe

9

4

13

17

6

23

30

3

33

9.1%

7.0%

Overseas

North

84

9

93

144

48

192

247

78

325

24.0%

69.1%

America

Overseas

130

29

159

250

69

319

351

89

440

20.2%

93.6%

total

Total

143

31

174

271

73

344

376

94

470

20.0%

Turnover rate

3.48%

3.30%

3.45%

6.39%

7.16%

6.54%

7.93%

7.82%

7.91%

  • Boundary of data: Advantest Group (full-time employees only)
  • From December 2019, the method of aggregating the number of employee turnover has been changed from including month-end employee turnover in the number of employee turnover on that month to including them on the next month.

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Supporting Diverse Working Styles

We create a work environment that facilitates the achievement of a good work-life balance in order to support our employees' diverse lifestyles and individual development.

Initiatives for Work-Life Balance

Advantest believes that the realization of a good work-life balance will ultimately contribute to the improvement of corporate value. We believe that a well-balanced workstyle is necessary to allow employees to maximize their capabilities while balancing their private life with work, and to maintain their motivation. Based on this philosophy, Advantest has continued to create good working environments that offer flexible working systems.

In Japan, Advantest has been promoting active use of existing systems, such as days to leave the workplace at the appointed time, use of annual paid leave, and flextime (for all employees). The ratio of employees using annual paid leave usage (23 days a year (22 days for employees with less than 10 years of continuous service)) has maintained a high standard at around 70% each year, marking 76.1% in fiscal 2022.

Moreover, a remote working system and a home office working system for all employees have been established, aiming to expand systems in which many employees will be able to conduct flexible and efficient work according to their tasks, workstyles, and lifestyles.

Remote Working System

The Advantest Group in Japan has introduced the remote working system since April 2020. We withdrew the restrictions on the maximum number of days that remote work is possible. We provide an environment in which most of the tasks can be done remotely in accordance with the basic information security policies.

The introduction of the remote working system has led to an expansion of new workstyles, helping employees, not only those who are raising children or caregiving family members, but also many others, to balance work and private lives.

Work-Life Balance Programs for Childcare and Caregiving

Advantest actively promotes support programs for balancing work and private life, providing flexible ways of working according to each individual's situation at various stages in employees' lives.

Examples of support programs in Japan

At Advantest, pregnant employees can receive 100% compensation during prenatal checkups and pregnancy complications leave, and are offered the choice to work shorter hours if instructed by a doctor. Advantest offers childcare leave and caregiving leave that exceeds legal standards. Childcare leave can be taken until the child reaches the age of two years and three months, and caregiving leave can be taken for

a maximum of three years. Other leave programs are also widely used, such as the accumulated holiday program, which can be taken for a variety of reasons, by fathers as well as mothers, including a spouse's childbirth, childcare, fertility treatment, and other caregiving responsibilities.

Furthermore, Advantest offers shorter work hours for employees who are raising children or looking after ill relations. Shorter working hours for childcare can be used until the employee's youngest child reaches the sixth grade, and is currently being used by many employees with children to balance work and childcare. There is no restriction on the period in which employees can work short hours in order to care for ill family members, so that employees can best balance their jobs with their home lives.

As there are cases in which employees resign their jobs during life transitions, such as marriage, childbirth, childcare, caregiving for the family, and spouse job relocation, Advantest has established a re-employment program for employees who meet a certain criterion.

We are also working on support for childcare participation for fathers, which includes the provision of personal consultations for male employees with children and their supervisors, guidance for childcare- related systems, and support for using childcare leave. In addition, starting in fiscal 2022, we have institutionalized a childcare leave subsidy of up to four weeks for employees who take childcare leave within eight weeks of the birth of their child.

It should be noted that re-employment of female employees following childcare leave as a result of these efforts, was 94% in fiscal 2022, and the ratio of male employees taking childcare leave in fiscal 2022 was 21%.

Advantest will continue to support fathers' participation in childcare by offering individual consultations for fathers raising children.

Number of employees using childcare leave

Boundary of data: Advantest Corporation (non-consolidated)

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Number of employees using shorter working hours for childcare

Boundary of data: Advantest Corporation (non-consolidated)

Number of employees using caregiving and nursing leave

Boundary of data: Advantest Corporation (non-consolidated)

Evaluation of Activities Supporting Work-Life Balance

In Japan, based on the Act on Advancement of Measures to Support Raising Next-Generation Children, efforts were made (measures and initiatives to increase the ratio of fathers taking childcare leave and creating environments that support work-life balance, and initiatives to reduce overtime and promote the use of annual paid leave) in accordance with the action plan period from April 2022 until March 2024. These activities so far were recognized, and Advantest received its second "Kurumin" certification in October 2022.

We will continue to focus on each employee's work-life balance and promote various initiatives toward creating work environments in which diverse human resources can play active roles.

Promotion of Work-Life Balance Programs

In Japan, Advantest launched the "Work-Life Balance Support Guide" website on the company intranet, offering information on work-life balance programs that can be used according to one's lifestyle, and raising awareness of the various programs that Advantest provides and encouraging utilization of the same. In recent years, Advantest has actively announced the work-life balance program, posted experiences of our male employees taking childcare leave, and also developed an environment that allows easier consultation, such as establishing a consultation service, to promote an environment in which employees can use work- life balance programs with peace of mind.

Reducing Overtime Hours

Advantest strives to ensure employees work appropriate hours to protect their health and achieve a work- life balance.

The Advantest Corporation (non-consolidated) has set the goals specified below and focused on increasing operational efficiency, encouraging a change in employee mindsets, and making the most of available work arrangements such as flextime and shift work while striving to reduce the amount of overtime.

Our overtime reduction goals

Number of employees with a monthly overtime of 80 hours or more

0

From fiscal 2020 onwards, we will continue to adopt the reduction of overtime work into our action plan under the Act on Promotion of Women's Participation and Advancement in the Workplace. We will raise awareness via the company intranet and promote initiatives to achieve flexible workstyles in order to further reduce the number of overtime hours.

Despite these initiatives, we were unable to achieve our company plan of zero employees working 80 hours or more of overtime per month for FY2022.

We were unable to achieve these goals due to keeping up with increased production and delivery support as well as dealing with unexpected problems.

The overtime hours per employee for FY2022 were an average of 20.5 hours as of March 2023. We saw an increase in our overtime hours due to the impact of COVID-19 as with last year, as well as due to increased demand and efforts to meet short delivery deadlines.

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Advantest Corporation published this content on 20 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2023 00:50:36 UTC.