ESG

Initiatives to Reinforce Human CapitalInterview

Consistent with its founding principle of mutual trust, the Wacoal Group manages employees’ health and safety, trains
personnel, and is receptive to diversity in human resources and values in each workplace, thereby deepening mutual trust

Empowering individual employees and reforming culture to create a rewarding place in which
employees can use their individuality and strengths

with employees and developing workplace systems conducive to the creation of environments where the talents ofindividual employees can be fully realized.
We have built value chains that comprise proprietary networks, which span all stages from fundamental research,
product planning, and development through to materials procurement, production, and sales. In these value chains, humanresources are the Group’s most important management resource. For this reason, we believe that creating an appealing
corporate culture that is employee friendly and offers job satisfaction will lead to sustained growth.

Wacoal Corp.’s Human Capital Strategy
Shinsuke Fukazawa(Basic policy)

Further promote career autonomy and foster a corporate culture that allows employees to feel fulfillment in their work, and aim to become “a company that

Corporate Officer Head of
HR Dept. of Wacoal Corp.

shares its success with all employees” by bringing out the individuality and strengths of each employee

VISION 2030

Revised Medium-Term Management Plan

Targets of the revised medium-term management plan
Running the organization by a select few =Individual growth xStrengthening organizational capabilities x
Fostering an appealing culture
To improve profitability as soon as
possible, we will implement humanresource development, organizational
development, and corporate culture reform
for medium-to long-term growth along withmanaging personnel planning.

Revised medium-term
management plan

Initiatives
to maximize
human capital

VISION 2030
3
Strengthen
management
capabilities

What we look for in our employees:“Autonomous and innovative
employees”● Employees who respect and can embody

4
Promotionof DE&I

5
Achievementof well-being

our management philosophy.
● Employees who can rethink existing
concepts and current frameworks andinnovate with enthusiasm.
● Employees who can proactively enhancetheir own abilities and take on thechallenges of new possibilities.
● Employees who can build good teamwork
and contribute to organizational goals.
● Employees who can practice healthy andsound lifestyles.

• Improvement in compensation that reflects work value and results• Investment in increasing the value of human resources

Priority issues

1

Recruit, train and promote employees whowill be responsible for the company’s growth.

● The company will recruit and develop a personnel portfolio based on

the changes in the business portfolio and business model.
● Expand opportunities and time for autonomous career development

and support individual growth.

2

Improve management capabilities to linkindividuals’ strengths to organizational results.

3

Foster an organizational culture of highengagement and psychological safety.

● Strengthen appropriate appointment and placement based on the

succession plan.
● Improve management and organizational capabilities through fosteringa healthy feedback culture.
● Promote DE&I and foster a culture with a high level of psychological safety

51 ■ WACOAL HOLDINGS

Initiatives to Maximize Human Capital
Hiring Status at Wacoal Corp. (career-track positions)

1 Acquisition of talent1
Acquisitionof talent2
SupportgrowthIn the revised medium-term management plan, we defined the value the company provides as “empowering
customers’ ability to be themselves.” In order to support the “beauty, comfort, and health of each individual
customer” as needs grow more diverse, it is necessary to empower employees who possess diverse values andindividuality, draw out the capabilities of each employee as much as possible, and transform that into the powerof the organization. Therefore, we will build a system that generates growth through business model reform andgrowth strategy, and increase investments in human capital that is responsible for sustainable growth.
As for acquiring talent and developing human resources, we plan to not only reinforce measures so that
individual employees can acquire the skills they need to grow but also aggressively invest in acquiring talent.
To implement structural reform and growth strategy, it is necessary to make decisions that optimize the whole
company and change our perceptions so that each employee sees this as theirs and can act autonomously.
Therefore, we will not only expand the responsibility and authority of the heads of departments and section chiefs
and accelerate decision-making and actions by revising the organizational structure but also make changes sothat we can offer flexible compensation that reflects work value and results. We will link these activities toimproved organizational results. Furthermore, we will foster an organizational culture that makes it possible foreach individual to use their strengths within an environment that offers high psychological safety, which includes
creating opportunities to learn about unconscious bias, in order to maximize the use of human resource diversity.

in which diverse individuals can play an active role in a fair environment.
● Implement a personnel and remuneration system that is fair and in linewith the times, and clarify the criteria and processes for promotion andappointment.

The Group believes that valuing a culture of boldness and daring to take onchallenges, and diversity that creates new value by bringing in new ideas,
is the source of our competitiveness, and we are focusing on recruitmentof new graduates as well as lateral hires (including recent graduates andcareer recruits). At Wacoal Corp., we plan to continue to use lateral hires
for approximately 30% to 50% of the total number of career-track
positions, including management candidates, global, EC and DX
specialists and other personnel.

Fiscal Year Fiscal Year Fiscal Year Fiscal Year
ended
ended
ended
ended
March 2020 March 2021 March 2022 March 2023

Question
Male

2

4

1

Female

6

6

1

6

Total

8

10

2

10

Male

10

13

7

6

New graduates (people) Female

13

16

16

10

Lateral hires (people)

Total
Lateral hire ratio

4

23

29

23

16

26%

26%

8%

38%

2 Support growth (human resource development, reskilling, career development)
Aiming to transform into a company where individuality and strengths of each employee are fully realized, the Group provides various training
programs to support the growth of each employee by providing learning opportunities and career advancement support.
■ Human Resources Development
At Wacoal Corp., we believe that our development as a company is dependent upon efforts to enhance the qualifications of each employee and his/her
support. Based on this belief and with the aim of fostering personnel who can put our management philosophy into practice, we support career and personal
development by providing training programs that support the development of employees’ careers and professional skills, as well as self-development support
programs to promote employees’ self-study.
New Personnel Development System details
https://www.wacoalholdings.jp/en/sustainability/resource/development/■ Reskilling
At Wacoal Corp., we are working to develop human resources
through reskilling (relearning) to ensure that our employees havethe skills necessary for business growth and new business. During
the fiscal year ending March 31, 2024, we have launched theoperation of an online learning tool as a part of initiatives to raise
the level of IT literacy to improve labor productivity of office work.
■ Career Development
At Wacoal Corp., we are working to develop human resources
capable of generating innovation by expanding the “Internal Job
Challenge” program, which allows employees to personally
request transfers, and “Outside Career Challenge” program, whichallows employees to gain experiences that are not available within
the company through secondment to companies andorganizations outside the Group, to increase opportunities for
employees to develop their careers on their own initiative.

TOPICS

Meet My Career Program

Wacoal Corp. has introduced the “Meet My Career Program,” which aims tohave employees develop their career independently and actively by
expanding the diverse systems and structures for career development and toenhance job satisfaction and revitalize organizations by promoting career
autonomy. Through this program, in addition to conventional
self-assessment, career interviews, training/self-development, and transfers,
we systematically provide opportunities for employees to proactively develop
possibilities and their careers, such as job challenges and internal
recruitment, outside career challenges, long-term leave, and side-work. With
this, we aim to accelerate therealization of diverse careerdevelopment for people byencouraging employees toactively implement a variety ofways to work, and at the sametime, by providing employees
Meet My First Career, a fiscal 2024 event for matchingwith opportunities to acquire
new career-track recruits and departments where theymight work
new skills, and refine them.

INTEGRATED REPORT 2023

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ESG

3 Strengthen management capabilities
Profitability has been declining at Wacoal Corp., our core operating company, due to sluggish sales and a cost structure with a high fixed cost ratio.
We will implement the business strategies set forth in in our revised medium-term management plan to return to top line growth and improve
profitability. In order to enhance management effectiveness, it is an extremely important issue to strengthen management capabilities to makeaccurate and fast decision-makings and contribute to organizational achievements. We will, once again, work to cultivate, develop and appoint
management human resources based on the succession plan. We also recognize that it is essential to foster a healthy feedback culture from theperspective of strengthening organizational capabilities. We will promote efforts to secure and develop management human resources who canrealize our vision, implement our strategies, and motivate members to link individuals’ strengths to organizational results.

■ Development of Management Personnel
During the period of the revised medium-term management plan, we plan
to provide new trainings for the senior management as part of measures todisseminate the Group’s management philosophy, and for all management
positions, to promote diversity as a source of innovation and to acquirebasic knowledge of psychological safety, which is a foundation oforganizational development, and unconscious bias.

■ Review of Evaluation System
At Wacoal Corp., while increasing the diversity of human resources, we arebuilding a more productive organization with a small number of highly
skilled employees. In addition, we are reviewing, as needed, our systems
and operations for “fair evaluation and treatment” and “appointment ofleaders who can continue to enhance the attractiveness of anorganization” which form the basis for such efforts. By fostering a cultureof feedback and enhancing the level of acceptance of evaluation results,
we aim to strengthen our organizational capabilities.

■ Promotion of Foreign Nationals to Managerial Positions
The Group, as a corporate group operating in countries and regions
around the world, appoints local personnel to the positions ofrepresentative (president) and key managerial positions in each of ouroverseas entities, including the U.S., Europe and China. We will continue
to hire diverse local human resources regardless of nationality and promote
them to key managerial positions in order to expand our business from thecustomer’s point of view and strengthen our competitive advantage in theoverseas markets.
■ Employment of People with Disabilities
The Group is improving the working environment and providing work
support by conducting training so that everyone is able to work
proactively, and we also conduct individual interviews to listen to worker
opinions. In February 2018, Wacoal I Next Corp. was founded to promote
the employment of people with disabilities and to create opportunities fortheir active participation. In December 2018, the company was certified asa special subsidiary under the Employment Promotion Act for Persons
with Disabilities.

■ Work-Life Balance
Wacoal Corp. is developing workplace environments that enable
employees to lead fulfilling lives and to make the best use of their skills. For
example, as part of our initiatives to help employees meet work andchild-rearing commitments, we are establishing programs and norms witha view to creating environments that are convenient and fulfilling to work in
not only for employees with child-rearing commitments but also forcoworkers who support them. Further, as a result of preparing an action
plan based on Japan’s Act on Advancement of Measures to Support
Raising Next-Generation Children and taking measures to implement theplan, in 2018 we received “Kurumin” certification for the third time and“Platinum Kurumin” certification. We plan to create a system that allows
employees to be flexible in the way they use their time so that they canincrease the diversity of their individual experiences and skills and create
innovation at work, by actively having connection not only with work andfamily, but also with society.

5 Achievement of well-being
4 Promotion of DE&I
The Group is building a sound corporate culture and a strong management structure by pursuing a system that enhances the job satisfaction of each
employee, while at the same time by ensuring the quantitative and qualitative appropriateness of human resources. Under the management
philosophy of “mutual trust,” we aim to create a work environment that is receptive to diverse human resources and values, deepens relationships of
mutual trust and that allows each employee to perform to the best of their ability. We will continue to expand the diverse career paths and work
options, and will implement initiatives related to human resources that will allow us to take advantage of the diversity of employees in organizational
decision-making for a rapidly changing market, such as by promoting an introduction of a new personnel evaluation system.

■ Empowerment of Women
As many of our employees at Wacoal Corp. and customers are female,Wacoal Corp. considers the empowerment of women’s involvement andactivities as an important management goal in order to reflect more diverse
viewpoints in its management decision-making. Therefore, Wacoal Corp.
has established a workplace environment that is appropriate and in linewith women’s unique life stages, promotes more flexible work styles, andhas instituted a system for promotion and advancement based on ability
and performance, regardless of gender or age. In February 2021, Wacoal
Corp. received the “Eruboshi Certification” from the Ministry of Health,Labour and Welfare of Japan, having been recognized as a company thathas made effective efforts to advance women’s participation.
■ Promotion of Women in Managerial Position
Wacoal Corp. has formulated a general employer action plan based on the
Act on the Promotion of Women’s Active Engagement in Professional Life,
under which we aim to increase the percentage of women in managerial
position (section manager and higher level) to 30% or higher by the end of
fiscal year ending March 31, 2025. The percentage of women in
managerial position (section manager and higher level) as of April 1, 2023
was 29%.
We will continue to identify human resources with a high aptitude forleadership from an early stage, regardless of gender, and further promote
the provision of training opportunities to candidates for managerial
positions. We will also develop talents capable of being in charge ofmanagerial and executive positions by supporting the autonomous growthof employees, encouraging them to gain experience in a variety ofbusinesses and positions, and continuously working to foster careerawareness.

■ Differences in Wages between Male and Female Employees
The differences in wages between male and female employees, one of theindicators for empowerment of women, at Wacoal Corp. is 52.9% (full-time
employees 53.9%, part-time and fixed-term employees 58.1%,
career-track positions 79.2% and management positions 91.2%). At
Wacoal Corp., there is no wage differential between male and female
employees in the same role. For this reason, the difference is due to (i) the
ratio of men in the managerial positions making up approximately 70% of
all managerial positions, (ii) the ratio of female employees in career-track
positions, especially in the hiring of new graduates, having been increasing
year by year, resulting in a high ratio of female employees among
employees who have been with the company for 10 years or less (10 years
or less since joining the company: 110 employees, 51.9%; over 10 years
since joining the company: 71 employees, 15.9%), and (iii) the fact that ahigher proportion of employees in sales related job groups compared tocareer-track positions.
We will increase the ratio of women in new graduates and lateral hires
in career-track positions, promote women based on their abilities
regardless of age and gender, and also increase the ratio of women in the
managerial positions and executive positions in order to close thedifferences in wages between male and female employees.

Differences in wages between male and female employees incurrent fiscal year (%)*
Name ofCompany

Wacoal Corp.

Of which,
Of which, are full-time employee status by position
are part-time/All
fixed-term
Employees All Full-time
contract
Management Career-track
Sales
Employees
employees
52.9

53.9

91.2

79.2

*

58.1

* • The figures shown have been calculated pursuant to the provisions of the Act on
the Promotion of Women’s Active Engagement in Professional Life(Act No. 64 of 2015)• Part-time/fixed-term contract employees include contract employees and postretirement rehires.
• An asterisk “*” indicates that comparison cannot be made due to the absence of
applicable male employees.

53 ■ WACOAL HOLDINGSIn order to achieve “to evolve and grow as ‘Wacoal Group of the World’ by providing both physical and emotional beauty and richness to individuals
through high sensitivity and premium quality” as addressed under our medium to long-term strategy framework “VISION 2030”, it is essential toincrease the satisfaction of our employees, who are key stakeholders, and to improve the productivity of the organization as a whole.
At Wacoal Corp., we believe that improving the job satisfaction and happiness of each employee is the driving force to achieve high productivity,
and we will implement initiatives to achieve well-being to improve employee engagement.

■ Promotion of Diverse Working Styles
We are promoting initiatives at Wacoal Corp. that seek to raise awarenessand change behavior on how to increase working productivity through a
combination of proactive use of remote work tailored to each department,
promotion of flexible hours, and operation of a limited work location
system. While promoting organizational reforms which emphasize on
performance and achievements, we are focusing on creating a corporate
culture that respects each individual as a business partner by recognizing
diverse opinions and values. While remote work has been adopted rapidly
as a measure to prevent the spread of COVID-19, we will continue toutilize remote work tailored to the characteristics of each department as “awork style to maximize the achievements and performance” even after thedowngrade of COVID-19 to a Class 5 disease (common infectious
disease). In addition, we continue to promote reforms in the way we work,
such as starting a “super flexible time” system from April 2023.

■ Health Management
Viewing the health of employees as an important asset for sustained
growth, Wacoal Corp strategically promotes the health management byworking together with the health insurance society and labor union as atrinity. Our goal under the newly formulated Wacoal GENKI Project 2025
for promoting health management is to improve the physical and mental
well-being of employees, leading to increased productivity and improved
employee engagement. We will continue to promote health maintenancethrough the ongoing implementation of various countermeasures toaddress lifestyle diseases, cancer, and mental health while further
developing a working environment that enables employees to makeself-initiated efforts to improve their health, thereby encouraging changes
in behavior and attitudes toward the subject of health improvement itself.
We are also stepping up our efforts to address health issues that are
specific to women. Furthermore, Wacoal Holdings Corp. has been
selected as an Excellent Enterprise of Health & Productivity Management(White 500) for seven years in a row since 2017.

Targets and Goals
Human Capital Issues basedon Management Strategies

Targets and Goals (KPI)

Initiatives to Maximize
Human Capital

Targets
Status of lateral hires (career-track positions)

Recruit, train and promote employees
who will be responsible for thecompany’s growth

Improving management capabilities
to connect individuals’ strengths toorganizational results

Foster an organizational culture ofhigh engagement and psychologicalsafety1

Acquisition of talent2Support growth(3

human resource
development, reskilling,career development

Goals
Achieve lateral hires of 30% - 50% in total
hires of career-track positions

Investment costs in development and training human resources
To formulate during fiscal year ending
Number of participants in programs and hours
March 31, 2024
invested in learning (as to working hours))

Number and percentage of employees reassignment
through internal recruitment and Job Challenge

To formulate during fiscal year ending
March 31, 2024

Degree of achievement of proactive career development

To obtain 60% or higher positive responses forquestions related to career achievement inengagement survey

Contribution of management that leads to sustainable growth

To obtain 60% or higher positive responses forquestions related to potentials and future
prospects in engagement survey

Foster a feedback culture

To obtain 60% or higher positive responses forquestions related to approval and praise,fair evaluation in engagement survey

Strengthen management
capabilities

KPI achievements under Wacoal GENKI project 2025

4

Promotion of DE&I

5

Achievement of wellbeing Employment of people with disabilities

https://www.wacoalholdings.jp/en/
sustainability/resource/wellbeing/
Statutory employment rate of 2.5% for fiscal 2025

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