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The Advantest Resource Management System (ARMS)

At present, our overseas sales ratio is over 90%, and among our approximately 5,000 employees, more than 40% (2,100) are overseas, making Advantest a global company. Given this structure, we introduced the Advantest Resource Management System (ARMS), a unified human resources system, in April 2012. ARMS promotes cooperation among multiple bases around the world, as well as smooth personnel exchanges and transfers.

Under ARMS, the unique job classification systems decided on by Group companies in each country have been replaced by a new 10-level job system that is common to all. In this system, job levels 1 to 6 are for general employees, while levels 7 to 10 designate management positions. There are two management paths in this system: one for "people managers," who manage budgets and deal with staff merit and labor issues, and one for "functional managers," who tend to business and ensure that operations are carried out properly. Line managers with subordinates are assigned to the first path, and all other specialists are assigned to the second. With these two lines for advancement, we ensure that diverse personnel can be treated as managers.

We also apply common global rules to our pay scale, including basic pay and bonuses. Previously, for example, bonus payments in each country mainly reflected the performance of Advantest's subsidiary or affiliate in that country, but under the new system bonus payments reflect the Company's consolidated earnings. Starting in fiscal 2012, we have applied a new system of evaluating employee performance. No matter where Advantest employees work, they can now be evaluated and rewarded according to a common global system.

Meanwhile, the new human resources framework offers labor management flexibility in setting up working hours, telecommuting arrangements and other job specifics, so that managers can more aptly address such matters directly in accordance with the laws and regulations of their respective nations and in line with local employment practices.

We are in the process of constructing a global personnel database, which we plan to use in forming global project teams and to facilitate smooth personnel transfers.

Moreover, we are setting up human resource development schemes with a worldwide reach, promoting employee diversity through active efforts to hire and promote employees with differing backgrounds, and taking decisive steps toward forging an employee recruitment strategy that accords with the business strategies of our operations in diverse countries.

In the spirit of establishing ourselves as a truly global company going forward, Advantest will continue to work hard to create a professional business environment where every member of a diverse Advantest Group workforce can make the most of his or her individual capabilities.

Pension system

Domestically, Advantest employs a point system to determine retirement benefits. We have also introduced a prefunded company pension system with defined benefits. Management of pension assets is entrusted to the Advantest Corporate Pension Fund. Retirement benefits are divided into lump-sum payments, which are paid by the Company, and the pension fund portion, which can be paid out according to years of service. In both cases, Advantest shoulders 100% of the cost.