Cooperating with Employees: Human Resource Development

SOCIAL

N.E. CHEMCAT encourages employees to be proactive about taking on challenges and strives topromote diversity to “build an environment and structure that allows employees to share the joy ofworking for N.E. CHEMCAT and constantly breed innovation,” as stated in Vision 2030.

Human Resource Development

on challenging and rewarding work, and have it evaluatedappropriately.
In FY2023, we introduced a new internal recruitment system for new posts and a special bonus system for employees who have demonstrated outstanding performance.

Human Resource System That
Encourages Employees to Be Proactive
about Taking On Challenges
To create the infrastructure for encouraging employees
to take on challenges, we introduced and are operating ahuman resource system. The system is designed so thateach employee can recognize clear roles and goals, take

Human Resource Management
Promotion System

Execute personalg o a l s s e t i n a c c o rdance with company-wide strategies
and fulfill expectedroles

Practice

Evaluate the degreeo f a c h i ev e m e n t o f
individual goals tied
to the company-wide
strategy as well as thedegree of fulfillmentof expected individualroles

Evaluation

HumanResource
Training System Planning
Allocation

In addition to on-the-jobtraining, Human Resources Dept. and other departments plan off-the-job
training, taking into account the competencies
required for the role

Human Resource Development

Through periodic interviews between supervisors and subordinates, formulate development plans for eachindividual and selectcandidates for thenext management
level

Based on the company-wide
strategy, establish appropriate organizations and roles,
and assign appropriate
personnel according to theirroles

Promoting Diverse Work Styles

N.E. CHEMCAT formulates and implements various humanresource policies based on the human resource strategy inits medium-term management plan.
Personnel evaluations and changes in role grades, personnel transfers and annual hiring plans, succession plans
for key posts, and the selection of candidates for the nextmanagement level are discussed by the Personnel Committee, which is chaired by the president. This ensures a
medium- to long-term perspective in the management ofhuman resources.

Five Components of the Human Resource System

Our human resource development is mainly based on onthe-job training, which involves communication with supervisors and senior employees in daily work as well as
guidance and advice provided via regular interviews.

Human Resource Development System
OFF-JTOJT

Function-specificSelected training
training (conducted
Knowledge & skills training (training for potentialby each organizationmanagers)category)

Position-based training

We also provide training for new employees and coaching training, as well as off-the-job training for each employee grade. The goal is to help them acquire the skills
required to fulfill their roles and to develop and improvetheir competencies.
N.E. CHEMCAT actively supports independent learningfor each employee, including support for obtaining a doctoral degree and English language training, and e-learning
courses that can be selected at will by interested employees.

 Flexible Work Styles
N.E. CHEMCAT operates systems that allows employees towork flexibly. Such systems include the flex systems andthe telecommuting system.
We also strive to maintain a balance between work andlife through appropriate management aimed at preventing long working hours and encouraging employees totake annual paid leave.
 Support System for Childcare and Nursing Care, etc.
To support the activities of employees with childbirth,childcare, and nursing care needs, the company has introduced a variety of support systems that exceed legal
standards. In FY2022, 100% of female employees who areeligible for childcare leave took it. The percentage of eligible males that took childcare leave exceeded 50% at 57%.
This achieved one of the goals set in the General Business
Owner Action Plan under the Act on the Promotion of
Women's Active Engagement in Professional Life.
We also began providing a new nursing care seminar in
FY2022 to provide appropriate support to employees when
they face the need to provide nursing care.

Self-development support
Dispatch to outside
the company

Individual learning

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Support for online English training

Provision of e-learning (management, technical skills, health management, languages, PC, etc.)

Support for taking various correspondence courses

Support for acquisition of qualifications

Dispatch of external seminars

Support for acquisition of abachelor's degree in liberal artsfrom the Open University of Japan

Support for obtaining a doctoral degree *employees with bachelor’s degree or higher

Training necessary for the execution of operations (in-house training, dispatch to external seminars)

Training related to Lean Six Sigma (LSS) activities

Education related to Responsible Care (RC) activities

SeniorManagement
Program

Education related to health, safety, environment, and quality

Practical placement and guidancePre-assignment training for overseas assignment

Performance Improvement Support Training

Diversity training (life planning, career design, nursing care)

metals management, etc.)

Compliance training (legal compliance, human rights, harassment)

Coaching training

Evaluator training

Basic skills training (logical thinking, facilitation, anger management, precious

S1

Followershiptraining

English training outside the company

S2

New supervisor training

Mid-career employee training *Introductory training and tours of plants

S3

New manager training

English Training for new employees

Employees

S4

Middlemanagement
program

Instructor system

M1

Training for new employees

Managers

M2

Assignments/guidance through regular meetings with supervisors

Off-site meetings

Diversity and Inclusion
Believing that acceptance of diversity leads to the creationof innovation and enhancement of corporate value, thecompany is working to create a work environment in which
the individuality of employees and the abilities of diverse
human resources can be fully realized.
In FY2022, the mid-career employee employment rate
exceeded 70% and the employment rate for people withdisabilities was 2.6%, exceeding the legally mandated level.

Women in Management Positions
Of the approximately 700 employees at the company, approximately 11.0% are women. The percentage of womenin management positions has been increasing in recentyears and was 4.9% in FY2022.
(%)
FY2019FY2020

FY2021

FY2022

Percentage of regular
employees who are women

10.0

10.9

10.8

11.0

Percentage of women inmanagement positions

3.3

4.6

4.3

4.9

General Business Owner Action Plan based on
the Act on Advancement of Measures to
Support Raising Next-Generation ChildrenChildcare Leave

Extension to 2 years old is possible
depending on the situation of thechildcare center. (The rate of employees who have returned to work after
taking childcare leave is 100%.)

Shortened Work
Hours for ChildcareAvailable until the child graduates fromelementary school

Nursing Care
Leave

Can be taken up to three times for aperiod of up to 93 days for a family
member in need of nursing care

1. Encouraging employees to take annual paid leave by
informing their supervisors of the status of their use ofannual paid leave.

Family Support
Leave

Available for up to 40 days per year for
nursing care of family members who are
injured or ill or in need of nursing care*Can be taken even if not in need ofnursing care

2. Using the intranet to inform employees about childcare
leave based on the Child Care and Family Care Leave
Law and various systems based on the Unemployment
Insurance Law.

Job ReturnSystem

Employees who have left the company
due to marriage, childbirth, childcare,nursing care, or a spouse's transfer are
eligible to return to work if they so desire.

Officers

M3

 Creating a Positive Workplace That Is Easy to Work in
N.E. CHEMCAT strives to improve the workplace environment based on stress checks and suggestions and recommendation from the labor union.
We also provide insurance coverage for illness and injury and a group life insurance program so our employees
can work with peace of mind.

We have established and are implementing the following
goals in order to create an environment in which all employees can balance work and child-rearing and in which
all employees can work comfortably so that they can fully
demonstrate their abilities.

3. Appropriately managing the transition of employees'
overtime work and striving to reduce working hours.

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Cooperating with Employees: Occupational Health & Safety

SOCIAL

N.E. CHEMCAT strives to create a workplace environment in which employees can work safely andin health.

Occupational Health & Safety
Seven Safety Action Rules
Under the safety policy that safety takes precedence overeverything else, N.E. CHEMCAT has established Seven
Safety Action Rules to ensure safety and health.

Seven Safety Action Rules
1. Follow the rules
All company employees shall comply with laws, regulations, and other internal rules.
2. Implement thorough safety precaution
In order to prevent injury, supervisors shall give due
consideration to safety (pre-screening, education andtraining) before utilizing new employees or introducing
new equipment, new substances, or new tasks.
3. Standardize operational procedures
Workplace supervisors shall standardize operational
procedures in order to ensure safety.
4. Wear protective gear
Personnel working on site shall wear appropriate protective gear.
5. Patrol the workplace
Supervisors shall patrol the workplace in a timely manner to identify any on-site issues. Identified problems
shall be corrected in a timely manner without leaving
dangerous locations or dangerous tasks unattended.
6. Report obligations
If an accident, injury, or emergency should occur, work
shall be stopped immediately, and the situation shall bereported to a supervisor as quickly as possible.
7. Prevent recurrence thoroughness
Following an accident or injury, all workplace employees
shall reflect seriously on the circumstances, determine
the cause, and take steps to prevent recurrence.

Health & Safety Promotion System
N.E. CHEMCAT has established health & safety committees
at each of its plants. These committees include safety managers, health managers, industrial physicians, and work supervisors, and a system is in place to reflect the opinions ofemployees at workplace and safety meetings. The initiatives
reported to the committee are reported to the company-wide
RC Committee, which oversees the progress of the initiatives.

Plants with Certified Health and Safety Management Systems
JISHA-qualified OSHMS

Numazu Plant, Tsukuba Plant

Safety Training
We conduct safety-related education and training andmake educational materials available on our safety andhealth bulletin board.
Safety Training (Examples)- Safety principles

Implementation of Risk Assessment
We support the mental and physical health of employees
by conducting risk assessments that place the highest
priority on preventing serious accidents and implement
essential safety measures such as the maintenance andmanagement of necessary equipment. In addition, weare working to improve work that involves heavy labor or
working in hot weather to create a workplace that is easy
to work in, even for elderly workers.

- Disaster preparedness education (BCP for major earth­quakes/wind, flood, and earthquake disaster prevention)- Education on chemical substance management- Training for employees who work with chemical substances- Education on management system of chemical substances in products- Education on basic knowledge of protective equipment (for new and mid-career employees)- Education on prevention of exposure to liquids (chemical hazards)

Risk Assessment Procedures
Selection of risk assessment targets

Work selection andimplementation
planning

Preparation of risk assessment plan

To prevent occupational accidents, we conduct regular facility safety inspections and health and safety patrols, aswell as workplace patrols by management, and shareholder audits.

HealthSupporting Employees' Mental andPhysical Health Employee Health Management through Health Checkups
Regular health checkups are conducted once a year tomaintain and promote employees’ health. We also help tomaintain the health of employees by providing thoroughphysical examinations.

- Education on full body harness fall arrest equipment

Specific healthcheckups

Specific health checkups are conducted
for all insured employees and dependents between the ages of 40 and 65.
For those who are selected for "motivational support" or "active support" in thespecified health checkup, an action plan isprepared under the guidance of a doctor,
public health nurse, etc., and health guidance is provided to improve lifestyle.

Thoroughphysicalexamination

Insured persons and their dependents
can undergo physical examinations without age limitation.

- Training for high-pressure gas handlers- Education on compliance with relevant laws and regulations- Traffic safety training

Identification of hazardous elements

Workplace Accident Prevention Activities- Heatstroke prevention education

Risk estimation of hazardous elements

Implementation ofrisk assessment

Evaluation of risk level
Consideration of countermeasures
Consideration and determination ofrisk reduction measures

Risk reduction
measures

Implementation of risk reduction measures- Risk assessment of chemical substances
In FY2022, we conducted off-site hazard simulation
training provided by the Sumitomo Metal Mining Group.
The five N.E. CHEMCAT employees who took the course
serve as on-site trainers. They take the initiative on andserve as role models in safety activities, urge other employees to practice safety, and work to sustain zero accidents and injuries at each plant.

Risk management

Safety Targets

 Health Consultations
N.E. CHEMCAT partnered with an outside organization andintroduced a system to provide mental and physical healthconsultations 24 hours a day. In addition to daily healthcounseling, we also provide services such as referrals to
medical institutions where consultations are available
during the year-end and New Year holidays.
Employees who request health counseling meet withan industrial physician or receive health counseling froma healthcare provider at least once a month at our head
office and plants.

With the aim of achieving zero lost-worktime injuries andinjuries without lost worktime, we are working to create asafe and healthy work environment for all employees. InFY2022, two lost-worktime injuries occurred.
Occupational Accidents(Number of accidents)
FY2019 FY2020 FY2021 FY2022

Lost-worktime injuries

1122Accidents without lost worktime

2200

Fatal accidents

0000

 Mental Health
The company conducts annual stress checks to not only
address mental health issues but also promote mental
health in a broader sense, including the revitalization ofworkplace communication.
In fiscal 2022, 98.6% of employees underwent stresschecks. We are following up with high-stress individuals
through interviews.

Health & Safety Management System
We have obtained OSHMS certification for our health and safety management system, which is qualified by the JISHA method.

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Hazard simulation training course

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