Human resource strateg

12Unifying thinking

3Developing strengths(invisible assets)

45

Picturing the desired future

Developing strategies, acting andrepeatedly evaluating and improving

Evaluation analysis for achieving the vision

Personnel development

Human resource strategy

Human resources supporting value creation
Happiness and Stability for Employees is part of the Sansha
Electric Manufacturing Group’s corporate philosophy. We believe that
our staff’s happiness is one of the most important parts of ourbusiness’s foundation for corporate growth and development.
Additionally, we are convinced that personnel who think and act
independently are essential for the Group’s continuous growth.
We are focused on increasing employee independence.

Under the basic policy that states the personal developmentof people is equal to the growth of the company, we are creating
an organizational climate in which employees help themselves
and each other develop and workplaces where they canwork vibrantly, aiming to simultaneously achieve the personal
development of employees and the growth of the company.

In an era where reform is required, we will push forward withinitiatives including the implementation of educational andtraining programs to continue to develop personnel with broad
perspectives and diverse experience who are capable of leading
our businesses in the future. In addition, we will enhance thepersonnel development system, including job-class-specifictraining programs, in our efforts to reinforce our humanresources foundation. At the same time, we will implement

initiatives for the quick development of young human resources
and retaining those human resources in a well-planned manner
During the medium-term management plan, we willemphasize the continued development of technology, thedevelopment of the engineering personnel who innovate,and further, the hiring of non-Japanese nationals and thedevelopment of global leaders who will take charge of overseasrelated duties to accelerate the global expansion of our business.

Training expenses per employee (Yen)Priority measures for
personnel development

30,00020,000Develop the next
generation ofemployees

26,13518,454

17,023

16,923

15,866

10,000

Personnel management for continuous growth
In 2021, the Sansha Electric Manufacturing Group began topush forward with medium- to long-term initiatives to achieve its
2030 vision, which consists of three pillars: the development of
the next generation of employees, employees that are experts
in technology and employees that are able to work actively inglobal markets, the promotion of diversity and the creation of anorganization and climate.

Think and act
independently
0Vision for 2030

2018

Personal
development ofpeople

2019

2020

Autonomy and diversity
Vibrancy

Ethics and compliance

Basic technologies

Training
for allpersonnel

Corporate Philosophy

Follow-up

Overseas businessexperience
program

Supporting
personal
development

Distance learning

Personnel in their secondand third year of service

Overseas trainee
program

Activeparticipationof female
employees

Acquisition of public qualifications

Increasing motivation ofyoung employees

Mentors for new employees

We will push forward with the creation of asystem that leads to increased motivation as
well as personal development and a climate
which enables people to take on challenges
without fear of failure.

Professional training at individual factories

To create an organization where diverse
human resources can work vibrantly, we will
push forward with initiatives to promote theactive participation of female employees,
achieve a diverse employee population andenable employees to achieve a healthy worklife balance.

Technical skills

Rank-specific training in factories

Personnel eligible forpromotion

PolicyAssociates

In an era where reform is required, we willcontinue working to develop personnel withbroad perspectives and diverse experiences,being capable of directing our businesses in
the future.

PolicySpecific toPersonnel
factories ormanagement
skillsTechnology management

Initial-level leaders

PolicyDevelop employees able
to work actively in global
markets

Promotion of active participation of female employees

Newly appointed
Managers

Language skill acquisition support program

Creation of organization and climate

Leaders

Promoting diversity

Newly appointed
Deputy General
Managers

Technological humanresources

Evaluation personnel

Realization of asustainable society

Three pillars
Personnel development

Develop employees that areexperts in technology

Personnel management

Contributing tosociety throughpower electronics

Training for senior
managers

Global humanresources

Personnel assessment

Development ofsocietyManagement

Growth of thecompany(FY)

Education and training systems

Required qualities
Independent thinking and acting
Have a can-do spirit
Communicate with a wide variety of people
Eager to learn and very curious

2022

The data covers Sansha Electric Manufacturing Co., Ltd. andits group companies based in Japan.

Rank-specific training
and promotion training

••••

2021

New employees

Priority measures
1 Cultivating next-generation executives andleaders
2 Rebuilding programs to develop skills andprofessional abilities
3 Building a foundation for human resources

to develop future global leaders

Priority measures
1 Promotion of active participation offemale employees. Securing development
opportunities in view of promotion tomanagerial positions and building a systemwhich will enable female employees tocontinue to actively participate over thelong term

Priority measures
1 Promoting projects focused on young andmid-career employees
2 Creating opportunities to interact with othercompanies
3 Holding meetings to exchange opinionswith management

2 Proactively promoting mid-career

employment

47

SanRex REPORT 202348

Human resource strateg

1

2

3

Developing strengths(invisible assets)

Unifying thinking

4
Picturing the desired future

Promoting diversity

Appointment of foreign nationals to managerial positions

Promotion of active participation of female employees

One non-Japanese officer was appointed at a subsidiary.
There are 46 non-Japanese managers in the Group as awhole, and one of them has been promoted to the positionof General Manager of a branch. No target has been set at

The group takes various steps to enable the women we employ
to develop. This includes skill development training for women
employees, encouraging a shift in the mindsets of personnel
including those supervising women, and job rotation to enable
women to work in broader fields. We are striving to construct
an environment that is friendly to our workers who are women
by interviewing people taking childcare leave before returning
to work, implementing a system of reduced working hours
measured by the minute, and making it possible to take nursing
care leave on an hourly basis. As a result of these actions, wereceived three-star Eruboshi certification in 2021.
Under this certification program, the Minister of Health,Labour and Welfare certifies companies developing andsubmitting notification of their plans of action in accordancewith the Act on the Promotion of Female Participation andCareer Advancement in the Workplace and applying toprefectural labour bureaus that meet predetermined criteria
and are engaged in outstanding efforts for the advancement ofwomen. In addition to the above, we were certified as a Leading
Company with Actively Participating Women in Osaka-shi (twostars) and certified under the Shiga Prefectural Government’sprogram certifying companies that enable women to advancetheir careers (two star).

PeriodFrom April 1, 2022
to March 31, 2025

The percentage of active employees that were hired mid-careeris 42.2%, with 37.4% of managers having been hired mid-career.
We believe that these percentages meet certain standards.
The Group will continue to proactively hire employees throughTarget 1: Increase the percentage of new graduates
recruited that are women to 20% or higher

Target 2: C ontrol the average overtime working hours of
regular employees to 15 hours or less per month• Increase recruitment activities conducted by employeesthat are women• Check the actual overtime working hours every month basedon internal rules• Actively distribute information about the good
performance of employees that are women• Control overtime working hours properly by using theattendance management system• Promote the appeal of the environment that is friendly to
our workers who are women (including the percentageof people using the childcare leave system)• Provide labor management training to managers

The Group proactively employs workers with disabilities. We
assign duties suited to their unique characteristics to ensurethat every one of them can work without worries and that they
are able to display their strengths as a valuable part of ourworkforce.
To move forward with the employment of workers withdisabilities, we are organizing plant tours for institutions providing
employment support for people with disabilities and hiring interns
from these institutions. In addition, we are working to help staff
acquire qualification as Working Life Counselors for Persons withDisabilities.
In 2022, the Shiga Plant was commended by the prefectural
governor as an excellent place of business for the employment ofpeople with disabilities.

Percentage of employees with disabilities (%)
Statutory employment rate

Results

4

2.7

2.7

2.7

2.6

2.2

2.2

2.3

2.3

2.2
2

1.802018

2019

2020

2021

2022(FY)

The data covers Sansha Electric Manufacturing Co., Ltd.
and its group companies based in Japan.

Work-life balance
We continuously strive to ensure that working hours are properly
managed and to reduce the amount of overtime worked. We are
improving the working environment to provide a foundation for all
employees, irrespective of gender, to establish a healthy worklife balance. Programs we have introduced include an annual

Women in managerial positions
Managers that are women (left scale)
Percentage of leaders that are women
Percentage of managers that are women (right scale)(persons)

leave saving program that allows employees to take expired
annual paid leave for medical treatment and nursing care and acommemorative event leave program that encourages workers
to take holidays for their preschool children’s birthdays and otherevents.

(%)

50

25

1040
30

33

3.9

13

2.8

2018

4
5.6
2.5

19
2019

10.0

4
6.7

6.6

3.4

3.4

22
2020

222021The data covers Sansha Electric Manufacturing Co., Ltd.
and its group companies based in Japan.

20Systems

Details

Scheduled annual leave

Every year, employees plan to take three days of annual leave in the first half and three days in the second half to maintainand improve work-life balance.

Commemorative event leave

Employees with pre-school children are entitled to set their children’s birthdays as days for taking commemorative event
leave.

Hourly annual paid leave andhalf-day annual paid leave

With an upper limit of five days per year, employees are allowed to take annual paid leave on an hourly basis. Annual paid
leave may also be split into half days, the morning and the afternoon.

Accumulated annual leave

Employees are allowed to take expired annual paid leave for purposes related to medical treatment/nursing care, sick familycare, support for disaster-affected areas, social welfare activities, and others.

154200mid-career recruitment activities and maintain the percentage
of all employees hired mid-career at 40% or higher and thepercentage of managers hired mid-career at 35% or higher.

Developing an environment where diverse
employees can demonstrate their capabilities

Managers and leaders that are women10

present concerning the promotion of non-Japanese employees
to management positions. However, the Group is implementing
initiatives to secure and develop globally competitive humanresources with the goal of expanding business overseas.

Employment of persons with disabilities

Targets and initiatives

To develop leaders that are women, we are reforming
awareness and providing training for acquiring skills
and expertise to exercise leadership. Regarding thepromotion of women to managerial positions, wewill set targets and create opportunities to interact
with external people to implement initiatives such asincreasing their career awareness and enabling themto develop their management skills.
To promote diversity, we will create teams wheremanagers leverage the diversity of their teams
and recognize personal qualities, while continuing
to provide training for the development of humanresources and provide opportunities to learn themindset.

Developing strategies, acting andrepeatedly evaluating and improving

Appointment of mid-career hires to managerial positions

Action plan based on the Act on the Promotion of Female Participation andCareer Advancement in the Workplace

49

5
Evaluation analysis for achieving the vision

103.5
282022

540
2030(Target)0(FY)SanRex REPORT 202350

Human resource strateg

1

2
Unifying thinking

3

Developing strengths(invisible assets)

4
Picturing the desired future

Male employees’ use of childcare leave
At the Sansha Electric Manufacturing Group, the number of male
employees taking childcare leave has been gradually increasing.
To further increase their use of this leave, we inform employees
thoroughly of the childcare leave program, ask superiors toencourage their subordinates to take leave, individually explain
the program to eligible employees, and implement otherinitiatives, thus continuing efforts to build an environment whichfacilitates the use of childcare leave.
In recognition of the initiatives being implemented tocreate an environment that enables employees to establish
a healthy work-life balance, such as
promoting the use of annual paid leave
to encourage employees to use it toensure they are refreshed, in addition
to the measures above, the Group wasgranted Kurumin certification by theMinistry of Health, Labour and Welfare
on August 26, 2022.

Developing strategies, acting andrepeatedly evaluating and improving

Sound labor-management relationshipThe company and the Sansha Electric Manufacturing Labor
Union are implementing many measures to achieve thesound development of both the company and the union while
respecting each other’s position.
The management and the labor union discuss salary,
benefits package, and other labor conditions on an equal footing,confirming with each other that the company understands thatthe labor union has the right to act based on the labor agreement
and related laws and regulations to maintain and improve labor

Number of employees taking childcare leave (persons)MaleFemale

15

12124

conditions and improve the economic standings of the union’smembers which is their basic right, and the company respects
the rights of the union.
In addition, meetings of the company-wide management
council, the branch management council at each base, andother organizations are held regularly to share information andexchange opinions to enable the smooth operation of businesses
and maintain and improve the work environment based on
mutual understanding and relationships of trust and cooperation.

9

Creation of organization and climate
4

2018

1

2019

4
2020

1

2021

2022

(FY)

The data covers Sansha Electric Manufacturing Co., Ltd.
and its group companies based in Japan.

Support for return from childcare leave
We ensure that employees wishing to resume working afterchildcare leave consult with their superiors to enable theirsmooth return to the workplace.
This is meant to remove anxiety about the return and5
Evaluation analysis for achieving the vision

facilitate their superiors’ understanding of their worklife balance.
Through this, we strive to create a working environment thatenables employees to establish a healthy balance between
childcare and their career.

We believe that all employees should fulfill the corporate
philosophy, purpose, vision, and other statements and we are
implementing initiatives leveraging various opportunities thatstart when an employee joins the company to ensure they areinstilled and established.
The AC Cafe sessions for exchanging opinions with thePresident started as a new initiative in FY2023, reflecting thePresident’s desire to listen directly to employees while sharing
his thoughts and purpose with them.
The AC Cafe sessions are not held only at the headquarters.
The President visits plants, branches, sales offices and groupcompanies to hold AC Cafe sessions in a relaxing atmosphere
over coffee. Each session is held with a group of seven or eight

employees and lasts for approx. one hour. Talking about hobbies
and sports in addition to work, the President exchanges opinionswith employees in a casual atmosphere. Thus, the sessions
serve as valuable opportunities for the President to build a senseof unity with the employees.
As of August 31, 2023, the President has talked with 27
groups (195 employees). According to the questionnaire survey
conducted after each session, many participants felt thatthey had enjoyable and meaningful time and reaffirmed theimportance of communication.
Moving forward, the President plans to talk directly with all
employees during FY2023 and FY2024.

Occupational health and safety
Our top-priority task is to establish a safe, healthy and soundworkplace environment that enables employees to work happily.
At the Sansha Electric Manufacturing Group, Safety and HealthCommittees have been established with the goal of ensuring
occupational safety and health, maintaining the good health ofemployees and maintaining and improving workplace environment
management. The Safety and Health Committees meet everymonth at the headquarters and at each plant. The committees

Sansha Electric Manufacturing
Group Safety and Health Policy
The Sansha Electric Manufacturing Group positions
safety and health initiatives as one of its mostimportant tasks. Each one of its employees will work
proactively to create a safe, comfortable workplace
and achieve good physical and mental health basedon their understanding that safety and health form thefoundation of management, aiming for zero accidents
and zero disease.

study the prevention of the recurrence of occupational accidents
using a risk-based approach, perform safety patrols and implement
other initiatives to enhance occupational safety and health. In
addition, every year we hold a safe driving workshop taught by
local police officers to prevent traffic accidents. We also have
local firefighters teach a workshop on the use of automatedexternal defibrillators (AEDs) to save lives.

AC Cafe
The Group’s strengths are in technologies for converting chokuryu (direct current, or DC) electricity into koryu (alternate current,or AC) electricity and vice versa. The name AC Cafe reflects the Group’s determination to be good at koryu (which can also means“interaction”) between people as well.

1 Comply with laws, regulations, and internal rules related to safety andhealth.
2 Work proactively on initiatives such as creating a safety-first workplaceenvironment, maintaining employee health and ensuring appropriate
working hours.
3 Strive to increase awareness of safety and health by ensuring goodcommunication and implementing employee training and internal PR
activities.
4 Proactively push forward with initiatives to prevent accidents andrespond to emergencies to ensure the security and safety of employees
and local communities.

AC Cafe51

SanRex REPORT 202352