Approach and Initiatives Regarding Human Capital

In recent corporate management, there is an urgent need to build an organization that respects diversity. The scope of this effort is not limited to the traditional promotion of female employees, but also encompasses a wide range of issues, such as to promote inclusions of any nationalities, religions, and sexual minorities. The Group is committed to meeting these challenges and fulfilling its social responsibility as a company that supports the physical and mental wellness of people by creating and maintaining a diversity-friendly work environment and promoting inclusive hiring practices.

〈Talent Development Strategy〉

In the area of human resources development, The Group actively promote employees to key positions, regardless of gender, nationality, or age, but according to their past achievements and preferences. It also actively transfers authorities, creating many opportunities for employees to take on new challenges, such as considering new business opportunities and exploring new business fields. Approximately 98% of the Group’s Directors and managers are mid-career hires. Although it is possible that the percentage of mid-career hires in management positions will decline in the future due to the promotion of experienced employees to management positions, the Group has not set a voluntary and measurable goal for the promotion of mid-career hires to management positions because the percentage is expected to remain high. Regarding the promotion of non-Japanese nationals to management positions, the Group recognizes that it will be a necessary challenge in the future to hire non-Japanese nationals as needed, promote them to management positions, and set voluntary and measurable targets, considering its business development. The Group’s action plan based on the Act on the Promotion of Women's Active Engagement in Professional Life sets a target of increasing the percentage of women in management positions to 9% by 2026 and to 18% by 2030 (8.6% as of December 31, 2023). The Group will measure the effectiveness of its action plan annually starting in March 2023 to achieve these goals, while promoting specific measures such as providing training and e-learning opportunities for female employees who wish to be promoted to management positions.
Following are the measures related to our Talent Development Strategy.

• - Enhancement of the internal training system and flexible personnel placement
• - Strategic job rotations aligned with each employee's desired career path to maximize their growth potential
• - Promotion of diversity-conscious recruitment and talent development to foster an organizational culture resilient to external changes

〈 Workplace Environment Improvement Policy〉

The Group regards maintaining an environment where employees can work comfortably as a critical management issue. A positive workplace environment not only enhances employee satisfaction but also directly contributes to increased productivity. Through these initiatives, the Group aims to support the well-being of its employees, thereby contributing to the long-term growth of the company.Following are the measures related to our Workplace Environment Improvement Policy.

• - Creation and maintenance of a healthy workplace environment that fosters high employee engagement
• - Expansion of employment opportunities through the efficient increase of regional and international presence
• - Establishment of flexible work styles to accommodate diverse employee needs
• - Support for skill development through internal initiatives, aligning with the personal goals of employees, and enhancing opportunities for promotion
• - Encouragement of reskilling by offering sabbatical leaves for employees

Indicators and Targets

The Group is developing key performance indicators and setting goals focused on human capital to unlock the full potential of its employees and drive sustainable growth. Here are the specific strategies being put into place.
For information regarding the indicators, please refer to the link here.

• - Increase the ratio of female workers in managerial positions to 18% by 2030
• - Starting from 2023, the Group has implemented a job-based approach to human resource management that includes opportunities for job rotation
• - By 2025, The Group's goal is to facilitate career advancement for 20% of its employees through an internal internship program, offering experiences in different departments
• - The Group is working towards earning certification as a Health and Productivity Management Organization