Human Resources Management
Action Items
1 Work-Life Balance
We are fostering a work environment where it is easy to work and ensuring each employee feels a deeper sense of fulfillment through work-life balance.
1 Stop long working hours!	As a general rule, we aim to eliminate long working hours (on average over 45 hours/month worked after regular hours and onweekends and holidays).
2 Create an environment that makes it easy for employees to fully utilize work-life balance systems.	We are working to encourage employees to fully utilize systems for childcare, caregiving, illness treatment, and more, and to create
an environment that makes it easy to use those systems.
3 Encourage employees to take at least 80% of paid leave and facilitate effective use of flextime system.	We aim for employees to take at least 80% of paid leave. We also facilitate the effective use of the flextime system for afternoon work
(no core time).
4 Prohibit business instructions that would require holiday or late-night work.	As a general rule, we do not delegate or carry out tasks that are predicated on working late-night overtime or on days off, such as anemail asking for a reply on a day off.
5 Cooperative framework in the workplace.	Supervisors manage subordinates in a way that burdens are not distributed unevenly. Employees carry out tasks with a genuine
feeling of cooperation and support in close communication with each other.

2 Activities by All Employees (DE&I)
Through DE&I, we are working to enable employees and the Company to develop.
6Active roles for everyone regardless of gender!
We will ensure anyone can thrive in the workplace and enhance employee capabilities regardless of gender and age.
Relevant KPI:

Achieve at least 15% of employees promoted to managerial positions (equivalent to section manager) being female over the
5 years between FY2023 and FY2027 on average

7 Let’s eliminate preconceptions and assumptions!	We will eliminate assumptions about the fixed division of roles and unconscious bias, e.g., thinking you have to do something“because I’m a man/woman.”

Relevant KPI:

Achieve at least 90% of male employees who have taken extended childcare leave or other childcare-related leave
due to the birth of a child during the current fiscal year.

8 Let’s build a hybrid human resource group!	We will flexibly incorporate and leverage the different abilities and ideas of diverse human resources to help invigorate the workplaceand grow the organization.
9 Encourage active roles for people with disabilities.	The Company and Sumika Partners Co., Ltd. have come together to provide an environment where people with disabilities canthrive. Everyone in the workplace offers support as fellow workers.
10 No harassment!	Aiming for complete eradication, we will not tolerate any form of harassment, including power harassment, sexual harassment,maternity harassment, paternity harassment, or SOGI* harassment.

* SOGI harassment: harassment related to sexual orientation and gender identity1

Human Resources Management

3 Development and Growth
Through development and growth, we are working to enable employees and the Company to develop.
11 Invest in growth for everyone.

We will continue to invest 300,000 yen per person* per year in education for the growth of our employees, who constitute ourhuman capital.
* Direct costs, off-the-job training opportunity costs, on-the-job opportunity costs
12 Support the desire to learn.	We offer a learning platform that enables employees to learn and grow for themselves regardless of when they joined the Companyor their age.

Relevant KPI:

50% or more of all employees taking self-selected training programs by fiscal 2024

13 Study every day, grow every day.	We aim for 10% of work time to be used for training and work study to cultivate more professionals.
14 Strive to enhance management capabilities!	We strive to enhance management capabilities, with managerial employees learning every day.
Target 1: 800 or more people taking training courses to enhance management capabilities per year.
Target 2: Receive 80% or higher positive responses to the following questions in the employee opinion survey.		
Supervisors clearly point out issues regarding the achievement of workplace targets.		
Supervisors proactively guide and advise subordinates on how to enhance their capabilities.

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15 Allow people to take on challenges and demonstrate their growth.	We allow subordinates looking to grow to take on challenges, for example, to try work designated for personnel one rank above theircurrent rank. Subordinates give their all to tackle these new challenges.

4 Healthcare
Under the slogan of “Good health is a prerequisite for good work and a good life!” we are undertaking specific action plans in the five fields of meals,exercise, sleep, quitting smoking, and mental health.
16 Revise eating habits, achieve a healthy weight.

To prevent lifestyle diseases, all employees should maintain an appropriate BMI (18.5–24.9).
1 00% of employees received specified health guidance and cured their metabolic syndrome through careful guidance.
Introduced nutritionally balanced dishes at the employee cafeteria.

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17 Exercise a little and stay healthy forever!

Use downtime to exercise regularly every day.
Establish walking habits (10,000 steps per day).
Enhance exercise and training environments.
Everyone should work out together after lunch.

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18 High performance depends on quality sleep.	Improve the quality of your sleep to ensure energy for the next day.
Implementing sleep improvement programs.
Thoroughly practice the dos and don’ts of sleep improvement.

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19 Smoking does nothing but harm.	We ban smoking for the health of ourselves and those around us.
As a general rule, smoking is banned during work hours and on the Company’s premises(including on business trips).
Participate in programs to support smoking cessation.

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20 Don’t forget to take care of your mental health.	Fostering fuller workplace communication and eliminating stress in your own way.
Supervisors and subordinates should directly communicate with each other at least once a day.
Practice mindfulness 10 minutes per day.

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Human Resources Management

5 Initiative to Enhance Productivity
By using digital tools and constantly revising work methods, we are enhancing productivity and promoting rational, efficient, and creative work.
21 Always review work goals and methods.	Do not rely on old ways of thinking. Constantly think of methodologies aligned with this era and work that is currently in demand.
Target 1: Reduce current workload by 10%.
Target 2: R eceive 80% or higher positive responses to the following questions in the employee opinion survey.
In my workplace, I can say anything about work without being conscious of my rank, age, gender, or other characteristic
22 Make the use of digital technologies the default.	Everyone in the Company, from top management to employees, utilizes digital technologies more than ever to create value andrevise operations!
Target 1: Everyone takes basic digital education courses.
Target 2: Go paperless (to under 20 million sheets).
Target 3: Improve operations by at least utilizing digital tools in the work place.
23 Eliminate excessive quality, streamline your work.	Do not assume too much. Do not hesitate to confirm your partners’ intentions and clarify communications in order to stay on trackand eliminate excessive quality.
Superiors clearly point out “what, why, and by when.” Subordinates confirm.
Report when 30% done.

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24 Maximize the added value of meetings.

Meetings are for discussion and decision making.
Target halving the number of meetings and attendees as well as their duration compared with FY2019.

•25 Put customers first!

Aim to increase by 50% the amount of time spent on customer communication and assessing social needs.
Through action items 21 to 24 , streamline the in-house use of time and labor as much as possible.

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