Human Resources Strategy

Eruboshi Certification (October 2016)

Certified as a company with the highest ratingof 3 stars for outstanding measures to promoteparticipation by women in the workplace

Transferring skills of veteran employees
We have extended the retirement age to 65 and enabled each employee to choose their own retirementtiming after turning 60. By developing an environment where veteran employees can continue working, we have increased options for individual life plans
while securing a period for them to pass on their specialized skills and knowledge, thereby enhancing business continuity.
Employment of people with disabilities
We undertake various initiatives to hire and retain
people with disabilities. For job seekers, we provide
work experience opportunities to deepen understanding of job content so they can join the company
with peace of mind. We regularly communicate with
Hello Work public employment security offices andvocational support centers to improve workplaces tosuit the needs of those with disabilities. Additionally,
we conduct employee questionnaires and interviews
to identify and improve challenges faced by employees with disabilities

Outcome50

TS TECH Integrated Report 2023

Promoting Occupational Safety andHealth Management

Our Basic Policy on Occupational Safety and Healthstates, “Based on our philosophy of ‘A company dedicated to realizing people’s potential,’ we position safety andhealth as fundamental to business activities and aim tocontinuously improve the workplace environment.” Starting in 2023, we have been deploying occupational safety
and health management system activities based on ISO45001. We aim to create safe and healthy workplaces byimplementing systematic measures to prevent occupational accidents while also pursuing human resource development, such as improving employees’ risk reduction
capabilities with training and conducting risk assessments at each site.
In terms of health management, we make various
efforts to improve employee health. In addition to implementing stress checks, we have systems in place to allow
employees who feel mental or physical distress to receive specialized care early on, using partnerships withvarious medical specialists. We also regularly hold inhouse training to promote proper understanding ofmental health.

• Active participation of diverse human resources in a workplace environment where everyone can work withpeace of mind
pp. 125–126• Improved operational efficiency and fewer long working hours through diverse work styles

TS Executive Business
Management School—BasicManagement Preparation Training
Mid-Level Training (Sixth Year)
Third-Year Training for New Employees
New Employee Training

OutcomeTS Camp

Management
Assessment Training

Self-Development

Correspondence Courses

TS Executive Business
Management School—Advanced
New Manager Training

By AgeDispatch

SelectiveTop Management
Training

Rank-Speciﬁc

Life Plan Seminars

Certified as a company that supports childcare
based on the Act on Advancement of Measures
to Support Raising Next-Generation Children

Education and training programs

Career Design Training

Kurumin Certification (May 2015)

We have established various systems to help employees
balance work and home life and allow them to selectfrom diverse work styles the one that suits their current
life stage.
In terms of paid leave, we are working to put inplace a system offering greater convenience for employees, including allowing paid vacations to be taken in halfday increments. As a result of this and other efforts, TSTECH has maintained a high rate of paid leave use
among employees, as exemplified by our placing seventh (with a 98.5% 3-year average usage rate) among the1,702 companies surveyed by Toyo Keizai Inc. in its 2023
ranking of the 200 companies in Japan with the highest
rate of paid leave use.
In addition, we are also promoting work-style diversification by enhancing each system, such as by introducing flexible working hours without core time and atelecommuting system to improve labor productivity
through efficient time allocation, and by extending theavailability of part-time work until a child completes elementary school.
By enabling flexible work styles with these initiatives,
we are supporting a balance between work and parenting/family caregiving commitments and enhancing
work–life balance.

We continuously conduct TS TECH Philosophy Education so that each and every employee understands
the concept that “the existential value of TS TECH can
only be found by embodying the ‘TS TECH Philosophy’” as a shared value and puts this into practice.
We are also working to expand efforts to share success stories involving employees who put the TS
TECH Philosophy into practice.

Training Prior to Overseas Postings

Promoting women’s participation
After gathering input widely from employees, we haveundertaken initiatives including introducing maternity
uniforms, publishing childcare support guidebooks,
and establishing in-house nurseries, thereby earning
various government certifications.

Enhancing Work–Life Balance

TS Trainee Program

We recognize the importance of diversity and promotevarious initiatives so that diverse human resources canleverage their individual abilities to excel.

Educating Employees about the TS TECHPhilosophy and Putting It into Practice

We have incorporated management-related content
such as finance, accounting, and marketing into thecurricula of each rank-specific training program. Ouraim in this is to further enhance the motivation andcapabilities of all employees while also fostering
managerial talent. We are also working to increase
training efficiency, including by offering trainings online, and to expand educational opportunities foremployees to proactively build their desire to learn.

Career Development Training

Efforts to Help Our Diverse Workforce Thrive

Human Resource Developmentthrough Diverse Training Systems

Managerial

Creating employee-friendly workplaces

Strengthening human resources

Non-Managerial

The TS TECH Group upholds “A company dedicated to realizing people’s potential” as one of its corporate
philosophies, believing that “people are the decisive factor in a company.”
With this thinking as the foundation of our human resources strategy, we strive to maximize the value
creation capabilities of every employee by providing a comfortable working environment, strengthening humanresources, and fostering the desire to grow and contribute. This, in turn, helps to increase our corporate value.

• Fostering the next generation responsible for sustaining the TS TECH Group’s growth• Maximizing corporate value by ensuring each employee practices the TS Philosophy

Fostering motivation to grow and contribute
Improving Motivation with Fair Evaluations

We enhance employees’ willingness to take on challenges and make contributions by properly evaluating actions and results commensurate with each
employee’s role and rewarding them accordinglywith compensation, rank, commendations, etc.
In addition, employees receive feedback fromsuperiors at least twice a year regarding work performance and the acquisition and demonstration ofskills in order to make them aware of their performance and encourage growth.

Fostering a Management Participation Mindset

We have introduced an incentive system using anemployee stock ownership plan to foster a mindset
among employees of participating in managementfrom the same perspective as shareholders.
• Employee stock ownership plan participation rate: 85.0% [Fiscal 2023(non-consolidated)]

Outcome

Initiatives to Deepen Mutual
Understanding Among Employees

We conduct an annual engagement survey with theaim of building a workplace environment where all ofour diverse employees can find meaning in their work.
In this survey, we define engagement as “mutual understanding between the company and employees,”and measure satisfaction with and expectations ofvarious factors such as job content, organizational culture, systems and benefits, in order to grasp the current situation and identify issues.
Our 2030 target is to achieve the top Engagement
Rating among the 11 levels, which is AAA. Efforts tomake improvements tailored to each workplace, suchas further enhancing the evaluation system and encouraging communication among employees, translate
to enhancing employee motivation and strengtheningorganizational capabilities and labor productivity.
• Engagement rating: C [Fiscal 2023 (non-consolidated)]• Deepening trust with employees with proper evaluation and dialogue• Fostering a sense of unity to improve performance based on a management participation mindset

TS TECH Integrated Report 202351