OSG Values

Societ yRoundtable Talk with OSG Employees

Realizing Innovation & Challenges
in Business Operations
OSG s aim is to be a company shining brighter than ever before as we strive to implement our Medium-Term Management
Plan Beyond the Limit 2030 and prepare for the year 2038 when we commemorate the 100-year anniversary of OSG sfounding.
In order to achieve that, OSG needs personnel capable of adapting to change and those with the ability to continue to take up
challenges and grow.
We gathered four mid-level employees, who will be the standard bearers of OSG s future, to talk about how they refuse to put
limits on themselves so they may embrace challenges and innovation going beyond anything that has ever been done before.

Roundtable Participants Backgrounds and Jobs
Moriguchi：I joined OSG right after graduating from university in 2016.
I have been working in investor relations since 2018, and have since
moved on to the sustainability team, where I am responsible forpromoting sustainability. I will be moderating today s discussion. To
start off, I would first like to ask everyone to introduce themselves.
Mizutani：I joined OSG as a
mid-career hire in 2003. In my
previous job, I was in charge ofrecruiting and other personnel
matters. At OSG, I have had theexperience of working intechnical support, management
planning, investor relations,marketing, and other areas.
Kanako Mizutani, Manager
Global Engineering Group
Currently, I am leveraging myDesign Center
language and marketing skills tolaunch new businesses and brands with our affiliates overseas anddoing other work involved with strategic businesses that have a direct
bearing on our Medium-Term Management Plan.
Sasahara：I was a mid-career hire in 1998, joining the company towork in sales and marketing. My previous job was also in sales. Then,
when searching around for opportunities to grow, I talked to mysupervisor about changing career paths and was reassigned to theMachining Technology Group where I have been for roughly sevenyears, learning CAD, machine operation, and processing technology. I
am currently working as a sales engineer assigned to the Growth
Industry for Global Share up (GIGS) Sales Group.
Suzuki：In my previous job, I was involved in the design andmanufacture of dies and molds and the company I worked for was alsoa customer of OSG. In 2006, I joined OSG and was initially assigned to aunit developing products. Later, after working in production
management at Oike Factory, I was put in charge of operations forlaunching the NEO Shinshiro Plant. In my current work, I am always
conscious of delivering products to customers on the proper deadline.
Enomoto：I was hired by OSG mid-career in 1997. This year marks my26th year with the company. Previously, I was in the service industry,
but found the irregular working hours incompatible and left that jobafter one year. At OSG, I have always been in marketing. Despite mystudies in the humanities, I have been involved in launching coresystems and promoting IT. Currently I am involved in digital support
operations on domestic sales.

Embodying Challenge & Innovation
Moriguchi：Could you please share an example of how you haveembraced challenge and innovation in your work?

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Enomoto：OSG has been promoting digital transformationcompany-wide. My department has been actively working to developand introduce our own robotic process automation (RPA). It has
allowed us to completely automate data input and other operations,use data to provide strategic sales tools, visualize demand using
electronic data interchange (EDI) with customers, and achieve otherinnovations. This has reduced simple tasks, enhanced operationalefficiency, as well as been useful in making use of extracted data tosupport the digital transformation of sales.
Suzuki：In May 2020, I was involved in setting up the NEO Shinshiro
Plant where we tackled thechallenge of introducing aninnovative digital production
management system that would
free us from the analog
production system. We
proceeded to create avisualization platform that linked
ordering, production, equipment,and all other data aspects. This
Hideaki Suzuki, Manager
Production Management Division
digitalization, which has boosted
Shinshiro Factory
frontline capabilities, has helped
augment production planning and on-time delivery. In addition, I feelthat the improved communication among departments has
strengthened coordination. This is anticipated to improve profitability
as well as optimize production operations and inventory management.
It also appears to have enhanced our connections with theMedium-Term Management Plan numerical targets.
Sasahara：We are taking on a challenge of carrying out GIGS activities
to pioneer new growth markets. Against the backdrop of changes
taking place in the automobile industry, we need to create pillars for
new businesses, so we have been actively developing sectors related
to semiconductors, healthcare, precision dies, and robotics. In order toidentify new customers, it s necessary to develop new strategic
products. That is why we have been facilitating activities that transcend
our organization as we strive to generate demand. In fact, we arestarting to see results in areas where OSG has traditionally not been an
active player, such as hard brittle materials and resin processing.
Mizutani：It gives me a sense of fulfillment when I think about how I
have been entrusted with tasks that start from scratch, and knowingthat these tasks are linked to the realization of our medium-term plan.
One actual example of a challenge is our polycrystalline diamond(PCD) tool business for machining ceramics, quartz glass, and otherhard and brittle materials used in the semiconductor sector. This is partof our strategic operations targeting the micro-precision machining
sector as set out in the Medium-Term Management Plan. The culture ofOSG, which encourages us to take on any challenge and supports
challenges throughout the organization, is propelling this business to
get on track.

Structure & Internal Systems Encouraging Employees
to Take up Challenges
Moriguchi：Does OSG have aninternal system in place thatprovides support for realizing
challenges and innovation?
Please talk about the system andorganizational management that
motivates employees to take onchallenges, taking into accountthe evaluation system andcompensation system.

Value Creation
StoriesValue Creation
Sustainability
Strategy

Corporate GovernanceCorporateData

Personnel & Training Program Challenges
Moriguchi：How do you consider the challenges and required measuresfor human resources and education systems towards the realization ofBeyond The Limit ?

Tomono Moriguchi

Strategic Planning Division
Sustainability Team

Suzuki：I think there is a substantial support system in place. Whenemployees want to take up a new challenge, they are able to makeuse of the career plan reporting program. Inspiration and new ideas
are required to improve operations and build innovative productionlines. Opportunities to find those hints are readily provided with thecompany s support for attending outside seminars and other learning
opportunities as well as visiting customers production facilities. Such
opportunities also encourage employees to take up new challenges. I
think there is a good support system in place, one that is focused on
creating an environment wherepeople are able to speak up andhear others ideas as well. OSG
has built an organization thatmakes it easier for employees toset about trying to do somethingnew.
Sasahara：When we reach theyear 2038 which is OSG s 100thanniversary, our younger
Takehiro Sasahara, Manager
GIGS Sales Groupemployees, the ones whoApplication Sales Division
currently have been with thecompany for less than five years, will form the core of the sales
departments in Japan. When I take a hard look at what OSG will be like10 years from now, I believe the even higher engineering level of oursales staff will provide a significant boost enabling the company togrow further. I hope that telling younger employees the story of myown experience of returning to sales after I gained knowledge bylearning product technology as an engineer even though I came froma sales background will raise the level of the entire sales department
and pique employees desire to take up challenges and not be heldback by fixed ideas.
Mizutani：At OSG, it might be that we naturally acquire the habit ofstepping forward to take up challenges. Looking back on my own
experience when I had only been in charge of my work for a shorttime, I was approached by my supervisor who prompted me to try
new things, saying: What do you think of being the instructor for thenext engineering workshop? and I m going to Tokyo for an investor
relations briefing and want you to come along. I feel the more
opportunities I had to gain a variety of experiences, the more I started
to take the initiative to face up to challenges. Personally experiencing
what is actually happening on the front lines, I feel, generated in me
new ideas and innovations. OSG s philosophy encourages people totake up a challenge.
Enomoto：OSG has a total of 222 e-learning courses. As part of thecompany s self-development program for employees, the entire
tuition is covered if you complete a course within the designated time
period. In addition, the company also offers a certification incentive
payment if you obtain a specific qualification set by the company. So,
I talked to my team members about getting qualified in personal
computer skills last year, and some of them even acquired thosequalifications. It is evident that OSG s active support encourages
employees. In the Digital Promotion Group to which I am assigned,
digital training is provided not only to those who wish to do so withinthe same department, but also others within the same office.
Everyone has jumped at the chance to take such courses.

Sasahara：Just as with other companies, OSG has also faced the problemof young employees leaving in recent years. When I was young, we
didn t receive any feedback about our performance evaluations, nor did
we feel that much anxiety or dissatisfaction about it, either. However,times have changed. Now, I m in the position of evaluating others. To
motivate people, I again feel it s important to have a personnel andperformance evaluation system that is fair and transparent. I have heardthat some companies in the same industry have already introduced it,
but I think it would also be effective for the company to introduce a
multifaceted evaluation system, such as a 360-degree evaluation that is
not a one-sided evaluation from the boss, and to conduct appropriate
evaluations according to the results.
Mizutani：Even though OSG s overseas sales account for nearly 70% of all
sales, I feel our daily operations and activities still don t have a sufficient
global tinge. This may be a consequence of the extent to which thepandemic curbed our activities, but there has also been less exchange with
our overseas group companies and fewer of our younger employees goingoverseas on business trips. Enhancing mutual understanding throughcommunication with people of different nationalities, cultures, and businesscustoms turns out to be an important asset for generating challenges andinnovation in the future. I think OSG needs to expand its programs andopportunities, regardless of department, to encourage employees globallyto take on challenges.
Enomoto：Even before the current
medium-term management plan
was formulated, there were items
to evaluate the challenges ofemployees, and I believe that there
is no excess or deficiency in thepersonnel evaluation system forthe realization of "Beyond The
Limit." However, it remains a
Naoko Enomoto, Assistant Manager
question whether a proper
Sales Support Teamevaluation is being made in line
Global Marketing Department
with the seven human resource
criteria OSG requires. It might be a challenge for the personnel evaluation
to clarify the evaluation items for each of the seven human resource
criteria, not just for challenges, and to promote the creation of indicatorsthat can challenge without fear of failure. For instance, it might benecessary to strengthen how the personnel evaluation system isadministered by enhancing training for both evaluators and those beingevaluated.
Suzuki：I think it is important for each and every one of our employees toorient themselves toward achieving goals that will accomplish theMedium-Term Management Plan. Nevertheless, I feel there is a gap
between the company s goals for having all employees understand andimbue this target and the reality that we face. I feel we need to instill inall our employees the concept of asking what they should do and how
they should do it, so that we move toward achieving the Medium-Term
Management Plan. Along with taking a step toward having each andevery one of our employees understand the Medium-Term Management
Plan measures, I think we also need to develop a system that facilitatescollaboration among working groups and extends that to small group
activities closer to the front lines so that we may better share the overalldirection of our organization and increase the speed with which werealize our goals.
Moriguchi：Thank you everyone for your valuable comments today. You
allowed us a glimpse into the challenges and innovations generated inyour daily activities. Seeing once again how OSG has established culturethat encourages individuals to take on challenges has made me also
want to continue to tackle challenges not only to realize Beyond theLimit but also for my own growth.
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