Involvement of Outside Directors & Resilient Governance Highly Rated
TOKYO, Japan – January 19, 2021 – Leading semiconductor test equipment supplier Advantest Corporation (TSE: 6857) today announced that it has been named as one of two "Winner Companies" in the Corporate Governance of the Year® 2020 Awards sponsored by the Japan Association of Corporate Directors (JACD).
The Corporate Governance of the Year Awards were launched in 2015 with the aim of improving management efficiency by enhancing corporate governance and supporting companies that are achieving sound growth over the medium to long term. In selecting winners, JACD examines ROE, ROA, market capitalization, shareholder composition, governance organization, and diversity and independence of the board of directors. Eligibility for the 2020 awards was limited to companies listed on the First Section of the Tokyo Stock Exchange that appointed three or more outside directors from 2018 through 2020.
Regarding Advantest's selection, judging committee member Kunio Ito, Professor Emeritus of the Graduate School of Business Administration at Hitotsubashi University, said, "Advantest is extremely serious about its governance efforts, and we evaluate them highly. The board of directors meets for 3-4 hours every time, and outside directors also participate proactively in frank and lively discussions. Top management also values the input of the board of directors, as can be seen from the fact that Advantest set numerical targets for the company's mid-term management plan for the first time with the support of the board of directors. The semiconductor manufacturing equipment industry is a business prone to particularly large fluctuations in performance, but Advantest has been able to set capital costs, and make investment decisions based on them, following due consideration of the risks and growth potential peculiar to this industry. We take special note of the ingenuity that makes this possible."
Yoshiaki Yoshida, President and CEO of the Company, commented, "It is a great honor to receive this prestigious award. Although the 2008 financial crisis badly impacted our performance, we have since strengthened our governance following the Corporate Governance Code established by TSE and the Financial Services Agency. With the support of outside directors, in April 2018 we announced our Grand Design, a set of high-level commitments to enhance corporate value over the medium to long term, and the entire company has worked as one to hone our earning power. This award is the result of everyone's efforts, and I would like to share the honor with all our employees. We will continue to strive to improve our corporate value undaunted by external shocks."
Advantest continues to strive to build a fair, efficient, and highly transparent governance system for sustainable development and improvement of corporate value over the medium to long term. For further details on the company's corporate governance, please refer to its Integrated Annual Report 2020:
* Corporate Governance of the Year is a registered trademark of the Japan Association of corporate Directors
About Advantest Corporation
Advantest (TSE: 6857) is the leading manufacturer of automatic test and measurement equipment used in the design and production of semiconductors for applications including 5G communications, the Internet of Things (IoT), autonomous vehicles, artificial intelligence (AI), machine learning, smart medical devices and more. Its leading-edge systems and products are integrated into the most advanced semiconductor production lines in the world. The company also conducts R&D to address emerging testing challenges and applications, produces multi-vision metrology scanning electron microscopes essential to photomask manufacturing, and offers groundbreaking 3D imaging and analysis tools. Founded in Tokyo in 1954, Advantest is a global company with facilities around the world and an international commitment to sustainable practices and social responsibility. More information is available at www.advantest.com.
Note: All information supplied in this release is correct at the time of publication, but may be subject to change.