Producing an employeefriendly workplace

Promoting work-life balance

System for compatibility support

List of compatibility support systems(enforcement year)

We are working to support compatibility between work and family
to have an employee-friendly workplace and promote women's
remarkable work. According to the regulations regarding childcare
leave, childcare leave is provided before the child is two years old.
Five days of sick/injured child care leave are provided if you have
one child and ten days of special (paid) leave are provided if you
have two or more children. We introduced a system of reduced
working hours for childcare by which the period can be extended
to up to three years if the child is a third grade or younger student
in an elementary school. We also institute five days of special paid
leave when a spouse gives birth to a baby.

People■ The number of people who took childcare leave

Maternity leave for spouse (before 1980)
Implementation of flextime system (1990)
Regulations regarding family care leave (1990)
Happy holiday leave (1991)
Regulations regarding childcare leave (1992)
Regulations regarding measures for maternity
health management (1998)
System for paid half days off (2000)
Family support holiday leave (2005)
Sick/injured child care leave (2005)
Regulations regarding childcare leave amended(leave period extension) (2005)
System of reduced work hours for childcare (2008)
Family care leave (2010): Male (men on childcare leave): Female (women on childcare leave): Male (men working reduced hours due to childcare): Female (women working reduced hours due to childcare)

23

17

30

People1415

2017 User of childcare leave systemor the like (female)25

152013151621614People

101511161891

2017 User of childcare
leave system or the like(male)

11702012

2013

2014

2015

2016

2017

YearPromoting annual paid vacation
While people clamor for work-style reform these days, the obligation oftaking at least 5 days of annual paid vacation in a year seems to belegislated.
Considering this movement, we encourage our employees, including
managers, to plan on and take at least 5 days of annual paid vacation fromFY 2017.

Producing an employeefriendly workplace

Diversified effortsPromoting female employees

Employment of challenged persons

INOAC positively uses female employees and creates an environment where female employees
can contribute to the company, fully demonstrating their skills and knowledge for their work
after we bring out their potential. We hold a Seminar for promoting women's success at work
every year for female candidates for management positions to encourage female employee
thinking and career enhancement. We also hold a Seminar of promoting women's success atwork every year for male candidates for management positions to make a system by which we
can support female employee success.

In order to realize a society where
everyone's possibility is broadened, wehire challenged persons. Attentivenessto other people is created in employee
minds and consciousness and isenhanced by hiring challenged persons.

■ The number of promotions to female managers (including INOAC Technical Center Co., Ltd.)
2002

2007

2008

2009

2011

2012

1

1

2

2

11

2016

2017

00

Year

Unit: Number of people

8PeopleWork regarding enforcement of the Law onPromoting Women in the Workplace

In connection with enforcing the Law on Promoting Women in the Workplace in April 2016, wework on promoting women's success at work with the three goals below to encourage themto demonstrate their potential and develop their careers in many divisions for the five years
from April 1, 2016 to March 31, 2021.

Goal❶

To raise the proportion of female subsection chiefs to that of male subsection chiefs, wework to promote 10% of female candidates to subsection chief in this term.

❷To find more female candidates for management positions, we will increase theproportion of female participants to 10% in the training courses for the mid-grade
employees or for subsection chiefs.

❸We will make the usage rate of managers' annual paid vacation equal to the rate ofgeneral employees'.

■ Change in hiring
challenged persons

3.0
2.5
2.0
1.5

2.43%
2.5

2.43

2.0

2.0

1.92 1.93 2.06 2.12 2.09
1.8

2.0

1.8

2.0

2.0

1.0

PeopleTotal number of promotions
to female managers:%0

Employment rate: June 1, every year

20112012

2013

2014

2015

Statutory employment rate2016

2017 Year

User of continuous treatment system
Since January 2015, we have been working to create an environment in which senior citizens
can continue their careers with us. We are increasing wages, working positively for them tocontinue as effective and responsible employees.
■ The number of continuous treatment
system users (end of 2016):

Appointed as a manager by
the company:

18

PeopleAppointed as an instructor for
his/her successor by the company:

341
1260

At request ofhimself/herself:

PeoplePeoplePeopleWelcoming international
We move international employees working at overseas local subsidiaries to the mother plant inJapan, and welcome them as trainees to improve their techniques and skills for humanresource development. By bringing back and utilizing their knowledge and experiences learnedin Japan, localization is facilitated and globalized know-how is handed down. We also
welcome technical interns from overseas local subsidiaries. They can contribute to work site
improvement after returning to their own countries through operations at specific production
sites for a certain period of time in Japan. We hope that they will have self-awareness asmembers of our group and be fans of INOAC through such experiences.

Producing an employeefriendly workplace

Human resource training

Employee education

Global HR Development

The Global HR & General Affairs Division plans and executes theEmployee Education that enhances the ability of and provides aplace for development for the employees of the INOAC Group.
Regarding employee education, a yearly schedule is drawn up
every year and uploaded on the company's message board; thenall employees can read it at any time. Study and training thatemployees would like to take and supervisors would like theirsupervisees to take can be drawn up all year round.

The INOAC Group deploys its factories and offices globally in more than 50 locations. In order to develop the human capitalthat is ready for progress in globalization, INOAC stresses its Global HR Development activities. The Global Mindset
Seminars try to improve the global sense of employees by exposing them to first-hand experiences outside Japan throughOverseas Study Trips and Short Term Overseas Business Trips beginning from their junior years. Candidates for being
stationed in overseas offices or factories are systematically trained through the Pre-Overseas Post Training with multiple
courses including experience from ex-expatriates before actually being sent to overseas business locations.

Stratified education
Both the Humanity Education that provides training that enhances
personal attractiveness, common grounds as working adults andstrength in character as well as the Capability Education thatprovides competence and proficiency expected in the jobs areoffered. Milestone Education is provided for each job title
including managers, newly appointed key positions, subsection
chiefs, group leaders and other mainstay backbone jobs when
they start the position. Employees of the same rank from all overthe country gather together for their Milestone Education to workon common tasks to make networks through training and lodging
together.

Sectional Specialty Education
The Sectional Specialty Education provides the basic knowledge,
domain knowledge and specific skills required for each specialty.
The educational curriculum has been built to reflect the need for
education from each division of the Group.
Sales Division: Trainings
that enhances the sales
skills at the beginner,middle and expert
levels.
Engineering Division:Trainings that improves
the presentation andcommunication skills of
the backbone mainstay
level employees.

Harassment prevention

Personal development

INOAC implements the following measures against
harassment in the company.
❶Declaration and publication of company policy
INOAC declares the company policy concerning
harassment including sexual and power harassment.

The Distance Learning Program supports employees
who wish to work on their personal development. Afterthe completion of this program, the company refunds
applicable employees with half the cost of the distancelearning. Each year, copies of a Distance Learning
Guidebook that includes more than 100 courses aredistributed to employees. About 100 employees takeadvantage of this program every year.

❷Establishment of consultation desk

The consultation desk to address harassment in theworkplace is established in the personnel and generalaffairs divisions in each area on a nationwide scale.
Consultation desks for women and consultation desks
at the labor union side are also established.

❸In-house research on actual conditions

The Power Harassment Questionnaire is administeredannually to all employees to try to understand theactual conditions.

❹Harassment educationAll the managers in INOAC are required to attend theHarassment Lecture.

Producing an employeefriendly workplace

Safety and health/Disaster prevention

Principles and basic policy for safety❶ Safety is the basis of the very existence of the Company.
❷All accidents and hazards are preventable.
❸Safety is achieved through the awareness andresponsible action of each employee.
Based on the safety policy above, safety being prioritizedover everything else is demonstrated and the practice ofstop, call, and wait after risk prediction is being followed.
With an annual activity plan defined incorporating activitiesof the Ministry of Health, Welfare and Labour as well asmonthly focus topics learned from past incidents, the safety
and health management practice is further enhanced
through repeated education/training as well as
improvements in weak spots discovered by safety andhealth evaluations.

Safety Practitioners Conference
1. Summary from the 2017 Conference①Reports from disaster prevention activities②Statistics and analysis of hazards in the INOAC Group

Whole-Company Safety Committee Meeting

Activities toward enhancing employee healthAs the safety activities lead by the top management andparticipated in by the whole company…

Each manager is responsible for leading the effort by showing
examples to improve the knowledge and skill.

◎Central Safety and Health Committee: Held four times a year

◎Consultation for mental health and harassment◎Field inspection by officers: Twice per year

◎Outdoor smoking space to separate smoking◎Safety Practitioners Conference: Six times per year

◎Reduction in road surface temperature as an environmental
measure◎Safety and Health Committee at each location: Monthly

Through these activities, INOAC enhances the company-wideawareness of safety, health and hazard prevention and builds
an organization culture
for preventing hazards
from occurring in thefuture.

Heat insulating pavement(reducing road surface temperatureby reflecting infrared rays)
Field safety inspection by top management

Developing safety-conscious workers
with the Safety Dojo (Safety Gym)

③Notices and changes in the Safety and Health Act

2. As education and awareness raising to prevent
occupational accidents①Work hazard prevention• Kyushu and Tohoku (via TV)• Grabbing Karuta (Japanese traditional playing cards) on whichslogans related to safety and health are written

The Safety Dojo lets employees experience work hazards insafe settings using 15 simulators that enable the employees tosee, hear and feel the hazards. The experience helps build aworkplace capable of achieving the zero-hazard standard byenabling the employees to become more sensitive to potential
hazards, able to predict them and ensure safe work practices.

Hazard prevention activities
Acting under the Crisis Management Protocol helps minimize
damage by natural and other disasters and ensures earlyrestoration
1. Large earthquakes◎Alleviation of earthquake damage to buildings and facilities◎Safety and disaster prevention equipment and stockpiles forearthquakes◎Responses after earthquakes◎Stockpile of mattresses to contributeto the community

2. Measures against fires, storms, andfloods

3. Policy for FY 2018
①Explanation of activities ofsafety, health and disasterprevention in FY 2018
②Proposal from the WorkUnion
Safety Conference◎Study and lead sessions byindustrial physicians and thehealth insurance association◎Preventive measures againstheatstroke

Safety dojo

◎Prevention of fires and explosions inmanufacturing facilities◎Preparations for and establishmentof structures against storm andflood damage◎Introduction of W-info, a weather
information distribution system
Introduction of W-info