Table of Contents
3-2. S (Human Rights and Labor) Initiatives ................................................................ 2
Initiatives toward labor issues ....................................................................................... 3
Health and safety initiatives .......................................................................................... 3
Principles of community investment............................................................................. 4
Results of local community investment ......................................................................... 4
Local employment, local procurement .......................................................................... 7
Company efforts to increase workforce diversity and equal opportunities, and to
reduce discrimination................................................................................................ 7
Training for employees ................................................................................................. 9
Percentage of non-full-time employees (contract employees + temporary employees)................................................................................................................................ 14
Percentage of female employees ................................................................................. 14
Commitment to gender diversity by the Board of Directors ....................................... 14
Number of occupational accidents (fatalities) among full-time and contract employees
in the past 3 years ................................................................................................... 15
Policy and commitment to reducing adverse health and safety impacts ..................... 15
A system that promotes engagement with employees and collaboration with charitablepartners ................................................................................................................... 15
Total amount of donations/community investment by the Company or its Group
companies in registered nonprofit organizations. .................................................. 161

3-2. S (Human Rights and Labor) Initiatives
Policy on employment support and other initiatives
The Group provides job placement assistance to young people by hosting internship programs and otherprograms. Our programs go beyond merely introducing the Group’s business activities. We invite
participants to present business proposals based on their industry research and work experience as we strive
to help college students who are willing to work gain a sense of perspective about their careers.
Our policy on labor standards
The Group aims to realize a society that utilizes housing rather than building it. Through its corporate
activities, the Group aims not only to solve environmental and social issues but also to contribute to thesustainable development of society. With this goal in mind, we have established the Charter of Corporate
Behavior as a Code of Conduct. We conduct our activities with high ethical standards and social norms toensure that the Group is trusted by society and can grow sustainably. The Charter of Corporate Behavior isposted on the Company’s internal portal site, and it is also shared with all officers and employees of theCompany and its subsidiaries. In addition, our action guidelines (STARMICA way.) was developed from
employee surveys and helps to foster a culture of respect for individual dignity and respect for others. All
employees refer to the action guidelines during training at the time of joining the Company and on otheroccasions, such as meetings. This helps employees calibrate their own behavior from time to time.
Charter of Corporate Behavior
The officers and employees of Star Mica Holdings, Co., Ltd., and its Group affiliates comply withapplicable laws, regulations, the Articles of Incorporation, internal rules, etc., and act in accordance withhigh ethical standards and social norms as follows:
1. We correctly understand and comply with the laws and regulations and their spirit. We also ensure theproper management and protection of customer information and other information held by the Company.
2. We engage in fair, transparent, and free competition as we carry out our business. Through appropriate
transactions, we build relationships of trust and satisfaction with our business partners. We also maintainsound and normal relationships with political and administrative authorities. We take a firm stand against
antisocial forces and groups that threaten the order and safety of civil society.
3. We place importance on ensuring the reliability of our financial reporting. We communicate not onlywith our shareholders but also with the society at large, actively and fairly disclosing corporate
information.
4. We build a safe and healthy work environment and establish a fair and motivating work environment. In
doing so, we support the growth of the Company and its officers and employees.
5. We strive to build good relationships with society by considering the environment, and to contribute to
the development of society as a good corporate citizen.
6. The officers disseminate this Charter internally and externally to ensure its thorough implementation andestablish an effective internal system.
In the event of a violation of this Charter, we will take appropriate measures to resolve the problem,
prevent its recurrence, etc., and provide prompt and accurate explanations both internally and externally.

2

STARMICA way.
1. Open and flat: Communication is open and flat.
2. Teamwork: Appreciation and respect are the basics of teamwork.
3. Professional: Professionals are people who continue to learn.
4. Clean smart: The goal is to be work smart.
5. Speed: Act with surprising speed.
6. Sense of ownership: Take ownership and what needs to be done comes into view.
7. Shared vision: Leaders share vision and take action.
8. Growth: Age or background do not matter; drive and ambition are what counts.
9. Challenge: Take on challenges with no limits or regrets.
10. Innovation: Be a cool company.

Initiatives toward labor issues
When hiring employees, the Group thoroughly verifies the age of candidates from the standpoint ofpreventing child labor. In addition, we carry out our hiring based on applications received directly from theindividual. Our employment regulations stipulate that the working conditions shall be made clear at the timeof hiring by referring to the notice of working conditions and the employment regulations. This prevents
work that is against the individual’s will.
We encourage efficient working styles in our daily operations. Specifically, we promote digitalization
under “work smart” in the “STARMICA way.,” our action guidelines. While being a small but specializedorganization, we promote the sharing of documents using cloud systems, etc. and the use of mobile devices
as we strive to enhance labor productivity.
Furthermore, we strive to reduce long working hours. Managers strive to monitor employees’ workloads
and coordinate as necessary. In this way, we have established a corporate culture that encourages employees
to return home early. With regard to working hours, we conduct company-wide monitoring, and we basicallyrequire employees to apply in advance if there is a possibility that their scheduled working hours may exceed
a certain number of hours. When overtime arises, we hold a meeting with the department head and take
immediate measures to improve the situation. Employees currently work an average of 18.0 hours per monthof overtime.

Health and safety initiatives
The Group has established Health Committee Regulations to prevent health problems among employees
and to maintain and promote their physical and mental health. The Health Committee is consisted of a
selected person who oversees the business, an occupational physician, a health manager, and representativesof employees. Through monthly committee meetings, the committee engages with managers and employees
to understand the details of occupational health and safety as it works to strengthen the system. Throughthese efforts, the Group works to maintain and improve the health of its employees and to create acomfortable working environment.
Introduction of M3 Patient Support Program (M3PSP)
We have introduced employee programs that can be used as part of health promotion. Subscribers gain
access to services such as obtaining a second opinion from a physician and finding a hospital.
Introduction of safety confirmation service
We have introduced a service to prepare for the event of a major disaster, which could happen at any time.
The service enables the safety and health status of employees to be ascertained in the event of an emergency,
making smooth recovery without disrupting operations possible, and also contributing to the psychologicalsafety of employees.

3Principles of community investment
Approach to social contribution activities
Through its business, the Group purchases owner-change properties, which are generally considereddifficult to distribute on the market, and sells them as renovated condominiums where strong demand is
expected. This improves the circulation of real estate across Japan and provides housing to those who wish
to become local residents, contributing to the revitalization of local communities.
Furthermore, as an additional social contribution activity, we conduct internship programs to provide
opportunities for college students who are willing to work so that they can gain a sense of perspective on
their career through industry research. We also conduct entrepreneur development activities througheducational institutions. In our activities through educational institutions, we share the history of our Group
from its start-up phase to the present with the younger generation. In doing so, we hope not only to encourage
the younger generation in the region to become more work-minded and growth-oriented but also to revitalize
the local community by fostering and discovering talented individuals through the transmission ofentrepreneurial know-how.
The growth of businesses launched by entrepreneurs trained by the Group has the potential to create newjobs in the region and to form a virtuous cycle in the economy. We also believe that if innovations in thefield which combines real estate and IT, etc., are created by the innovative ideas of the younger generation,
we can utilize those ideas in our business to diversify our profit opportunities and ultimately lead to the
expansion of the Group’s business.

Results of local community investment
Internship programs
Our programs go beyond merely introducing the Group’s business activities. We invite participants topresent business proposals based on their industry research and work experience as we strive to help college
students who are willing to work gain a sense of perspective about their careers.

4Calendar year
2019

Name

TargetSummerAugustSeptember

Graduatesof March
2021

11

77h

18 (1) Work experience through group work
(Calculation of the purchase price of preowned condominiums, preparation ofrenovation plans, etc.)(2) Roundtable discussion with employees

162h

12

126h

22 Same as above

242h

24

252h

17 Same as above

226hAutumnOctoberNovember

21

240h

WinterDecember

627h

26 Same as above

344h

AutumnOctoberNovember

32

448h

WinterDecember

5

15h

209

2,264hSummerAugustSeptember

Graduatesof March
2022

SummerAugustSeptember

Graduatesof March
2023

AutumnNovemberDecember
2022

2023

Total

Duration
105h

AutumnNovember
2021

Details

15 (1) Observe and experience the work of
employees(2) Create and present a personal history
presentation(3) Roundtable discussion with employees

WinterDecember2020

Number ofparticipants

SummerAugustSeptember

SummerAugustSeptember

Graduatesof March
2024

Graduatesof March2025

5

Lectures
Since 2007, Mizunaga, the CEO of the Company, has given lectures at various locations around thecountry. Over the past five years, he has given the following lectures at graduate schools, companies, etc.
Although the lectures are mainly given by Mizunaga, employees also take part in these activities, mainly
when holding lectures at the Company. Roles carried out by employees include planning and developing
lecture content, managing the event on the day, or delivering part of the lectures to share their insights withparticipants.
Major activities
Number ofparticipants

TimingName of academic
institution

Lecture title

March 2018

Wharton (University ofPennsylvania)
MBA / EMBA

“Professional Career andEntrepreneurship”

30

July 2018

Keio Business School,
Graduate School ofBusiness Administration,
Keio University
Asia Business Field
Study Program“Professional Career andEntrepreneurship”

42

June 2019

Kyoto University Career
Seminar“If I were a college student again”

80

July 2019

Waseda Business School(Graduate School ofBusiness and Finance)“The Business of STARMICA Strategy in Practice”

13

March 2022

Hitotsubashi University
Business School
School of International
Corporate Strategy“Professional Career andEntrepreneurship”

50

Number of lectures and participants (by calendar year)
Calendar year
2018
2019
2020
2021
Number of2200
lectures
Number of72
93
00
participants*In 2020 and 2021, activities were restricted due to the spread of COVID-19.

6

2022

2023
1

0

50

0

Establishment and operation of the foundation
In 2021, Mizunaga, the founder, played a central role in establishing the Star Mica Mizunaga Foundation
for the following purposes.
(1)
(2)
(3)
(4)
(5)
(6)

Promote academic studies toward remedying social problems
Support education to nurture future leaders of society
Contribute to the promotion of academia, culture and the arts
Promote industrial activity that contributes to the development of society
Contribute to the promotion and revitalization of real estate distribution centered on pre-owned homes
Promote other studies and research for more innovative and sustainable development of society

Going forward, we will carry out various activities to contribute to the development of academia,
education, culture, and industry, and to help realize a recycling-oriented society.

Local employment, local procurement
The Group contributes to local community activities through its business and social contribution activities.
In particular, since 2018, we have expanded our bases to regional core cities (Sapporo, Sendai, Nagoya,
Osaka, Kobe, and Fukuoka). As we have done so, we have been actively hiring local human resources. Also,in the renovation work, we have been working with local companies as we work to contribute to thedevelopment of each region.

Company efforts to increase workforce diversity and equal opportunities, and to reduce
discrimination
Employee diversity and equal opportunities
The Group strives to provide equal opportunities in the workplace. As well as ensuring that our hiring
practices do not discriminate on the basis of gender, we also have a training and mentoring system that does
not discriminate on the basis of gender.
Furthermore, we have put in place the following systems, which expand on the legal system, and we haveestablished a system that does not limit our employees’ opportunities.
(1) We have introduced systems for antenatal and postnatal leave, childcare leave, shortened working hours,
and nursing care leave. Our system of shortened working hours can be used by employees, whether
male or female, until their children’s graduation from primary school.
(2) Employees who have nursing care responsibilities and who meet certain requirements can use theshortened working hour system while caring for their family members.
(3) We have a rehiring system for promoting employment of the elderly. We strive to provide equal
opportunities to our employees by allowing those who wish to continue working to do so based on ourrehiring rules.

7

We are also especially focusing our efforts on the following areas:
Promoting the active participation of women
The Group believes that female perspectives are indispensable in the design of housing. We continue topromote the active participation of women by providing a variety of career development options for adapting
to changes in life stages, as well as benefits and subsidies that allow women to continue working with peaceof mind.
Promoting the employment of foreign nationals
The Group believes that responding to the needs of globalization requires a perspective that is not boundby Japanese cultural norms. We actively employ foreign nationals and establish a workplace where they canwork with peace of mind and also provide support in their daily lives as appropriate.
Active employment of the elderly
With the extension of healthy life expectancy, our society has become a place where people can work
longer, and the labor force of senior citizens is a major driving force behind Japan’s economy. The Group
actively employs the elderly and creates opportunities for them to utilize their skills and knowledge inbusiness while helping to bring about vibrant lifestyles for the elderly.
Promoting the active participation of people with disabilities
The perspectives of people with disabilities can be expected to be a major asset in implementing barrierfree offices and the development of universally designed products. The Group is committed to creating aworkplace where employees can use their talents to work, regardless of whether they have disabilities, byrevising our operations to optimize and improve efficiency.
Promoting understanding of LGBTQ
Accepting sexual minorities helps ensure that we have the best talent. By recognizing and respecting
diverse values, we make our business more competitive. The Group does not discriminate against sexual
minorities in its hiring practices. We continue to establish internal systems and workplace practices thatconsider sexual minorities.
Overview and duration of skill development training for employees
In our action guidelines, we view individual growth as depending on motivation and ambition, and we
encourage our employees to continue learning. We have prepared a step-by-step curriculum that leads toskill development through various in-house training programs.

8

Training for employees
Fiscal year
implemented
FY19

FY20

Name

Target (affiliation)

Number ofparticipants

PurposeOverallduration(Total)

In-housepracticeexams for
Real EstateTransaction
Agentcertification

Full-time
employees

19 Passing the certification
examination

456h

Training for
new managers

Full-time
employees

6 Understanding the roles andexpectations required of amanager, and gaining therequired knowledge

12hReal estate
training

Full-time
employees
Contract
employees
Temporaryemployees

New graduates: Postassignment follow-up Midcareer: Acquiring industry
knowledge

232h

Follow-up
training fornewemployees

Full-time
employees

13 Post-assignment follow-up

78h

Renovation
training

Full-time
employees

58 Acquiring knowledge that
contributes to procurement
activities and productdevelopment

1,015hLabor
management
training

Full-time
employees

49 Acquiring knowledge ofattendance management
rules and laws andregulations

24.5h

In-housepractice exams
for Real EstateTransaction
Agentcertification

Full-time
employees

14 Passing the certification
examination

364h

Excel training

Full-time
employees

18 Learning basic functions of
Excel and improving work
efficiency

108h

13 new
graduates/new
employees
16 new midcareer
employees
29 in total

9

Fiscal year
implemented

Name
Real estate
training

Target (affiliation)

Number ofparticipants

Full-time
employees

Purpose18 New graduates: Postassignment follow-up

Overallduration(Total)
144hMid-career: Acquiring
industry knowledge

FY21

In-house
training

Full-time
employees

12 Fostering communication
with management andincreasing motivation

18h

Training for
new managers

Full-time
employees

4 Understanding the roles andexpectations required of amanager, and gaining therequired knowledge

8hFull-time
Follow-up
training for new employees
employees

12 Post-assignment follow-up

72h

Addressing a lack ofcommunication during the
COVID-19 pandemic

157.5hIn-house
training

Full-time
employees

12 in Year 1
11 in Year 2
12 in Year 3
35 in total

Training for
new managers

Full-time
employees

4 Understanding the roles andexpectations required of amanager, and gaining therequired knowledge

4h

Practical
brokerage
training foryoung
employees

Full-time
employees

9 Practical brokerage sales
training for planning andadministrative employeeswith no sales experience320hIn-housepractice exams
for Real EstateTransaction
Agentcertification

Full-time
employees

9 Passing the certification
examination

162h

Housing loans
training

Full-time
employees

96 Acquiring knowledge of
housing loans

528h

Labor
management
training

Full-time
employees

2 Acquiring knowledge ofattendance management
rules and laws andregulations

1h

10

Fiscal year
implemented

Name
Real estate
training

Target (affiliation)

Number ofparticipants

Full-time
employees

Purpose5 New graduates: Postassignment follow-up

Overallduration(Total)
40h

Mid-career: Acquiring
industry knowledge

FY22

Year-end tax
adjustment
seminar

Personresponsible forhuman resources
and payroll

1 Acquiring practicalknowledge of payroll

6hIn-housepractice exams
for Real EstateTransaction
Agentcertification

Full-time
employees

14 Passing the certification
examination

308h

Training for
new managers

Full-time
employees

6 Understanding the roles andexpectations required of amanager, and gaining therequired knowledge

Real estate
training

Full-time
employees

20 New graduates: Postassignment follow-up

6h

460h

Mid-career: Acquiring
industry knowledge
Full-time
Follow-up
employees
training for new
employees
FY23

4 Post-assignment follow-up

48h

28 Passing the certification
examination

616h

1,230hIn-housepractice exams
for Real EstateTransaction
Agentcertification

Full-time
employees

Real estate
training

Full-time
employees

36 New graduates: Postassignment follow-up

Contract
employees

Mid-career: Acquiring
industry knowledge

Contract
employees

Renovation
training

Full-time
employees

47 Acquiring industry
knowledge

Management

Full-time
employees

25 Understanding the roles andexpectations required of amanager, and gaining therequired knowledge

training

11550h

1,150hFiscal year
implemented

Name

Target (affiliation)

Number ofparticipants

Full-time
Follow-up
training for new employees
employees

Purpose24 Post-assignment follow-up

Total

625

12

Overallduration(Total)
494h

8,636hSupport for obtaining a Master of Business Administration (MBA)This program provides time and financial support for employees to attend business school for the purposeof fostering personnel who are well versed in overall corporate management and who possess the highpersonal skills that would qualify them as candidates for our next generation of managers.
Support for obtaining various qualifications
This system encourages employees to obtain public qualifications as part of their skill improvement andself-development by providing all employees with a qualification allowance for those who obtain suchqualifications. Based on our Code of Conduct, which states that “professionals are people who continue tolearn,” we strive to foster a culture of continuous learning. We have established Real Estate Transaction
Agent certification as a mandatory qualification. We encourage not only sales employees but also
employees working in the planning and administrative departments (Accounting Division, Finance Division,etc.) to obtain these qualifications. The percentage of employees of the Group who hold Real EstateTransaction Agent certification is 96.7%.
Introducing a mentoring system
We have introduced a mentoring system to help employees get to know the climate and culture of theCompany. New employees are given a year to complete their training, while mid-career employees are
given six months to complete their training. The system enables them to gain a multifaceted perspective that
goes beyond the perspective of the department to which they are assigned. We also provide continuous
guidance to our employees so that they can become not only employees of the Company but also usefulmembers of society.
Mizunaga Seminar by the founder
We continue to hold seminar-style study sessions (known as the “Mizunaga Seminar”) in which
employees who aspire to become executives in the future give presentations on the Company’s issues andsolutions in front of top management and receive direct feedback.

13

Percentage of non-full-time employees (contract employees + temporary employees)*Total (all employees): Full-time employees, contract employees, temporary employees, and part-time
employees*Non-full-time employees: Contract employees, temporary employees
FY21
Total(Persons)
Percentage of non-full-time employees(Temporary, contract, etc./total, %)

FY22

FY23

177

202

219

20.9%

21.7%

18.7%

Percentage of female employees*Total (all employees): Full-time employees, contract employees, temporary employees, and part-time
employees
FY20

FY21

FY23

Total(Persons)

177

202

219

Of which, female(Persons)

96

112

125

Percentage of female (%)

54.2%

55.4%

57.1%

Managers and employees in equivalent
positions(Persons)

51

54

57

Of which, female(Persons)

13

15

17

25.4%

27.7%

29.8%

Percentage of female managers andemployees in equivalent positions (%)

Commitment to gender diversity by the Board of Directors
Efforts toward gender diversity in the Board of Directors
We believe that to continue meeting the diversified and complex needs of customers in the future, we needto design products that incorporate a variety of perspectives. In particular, women are often the decisionmakers in housing purchases by families, the main target group for our products. The perspective of womenis therefore vital when designing products that meet their needs. We have elected a director (female) at
26th Annual General Meeting of Shareholders, as an example of our effort to gender diversity of the Boardof Directors. We will strive to develop personnel systems and foster awareness in accordance with thevarious group companies, departments, and workplaces in order to raise the percentage of female managers
and employees in equivalent positions.

14

Lost time injury rate for the past 3 years
FY21

FY22

FY23

Lost time injury rate

0

0

0

Number of fatalities and injuries due tooccupational accidents (persons)

0

0

0

Total actual hours worked (hours):

0

0

0

*Lost time injury rate = number of fatalities and injuries due to occupational accidents / total number ofactual hours worked × 1,000,000*Number of fatalities and injuries: Including those absent from work for more than one day and those losing
a part of or function of their body

Number of occupational accidents (fatalities) among full-time and contract employees in thepast 3 years(Cases)Full-time employees

Contract
employees/contract
workers

FY21

FY22

FY23

Total

0

0

0

Fatalities

0

0

0

Lost time

0

0

0

Total

0

0

0

Fatalities

0

0

0

Lost time000Injuries, fatalities and incidents
During the three fiscal years from FY21 to FY23, the Group has had no instances of accidents involving
injury or resulting in the death of employees.

Policy and commitment to reducing adverse health and safety impacts
During the three fiscal years from FY21 to FY23, the Group has had zero instances of occupational
accidents, and the occupational accident frequency rate is also zero. Going forward, we will continue to
strive to maintain zero.

A system that promotes engagement with employees and collaboration with charitable partners
The Group’s employees have been actively involved in social contribution activities such as cleaning the
Zaimokuza beach in Kamakura city in Kanagawa Prefecture, coral transplantation activities in Okinawa
Prefecture and voluntary reconstruction work in Minamisanriku in Miyagi Prefecture.
Through the Star Mica Mizunaga Foundation, launched in FY21, we will carry out various activities
going forward, to contribute to the development of academia, education, culture, and industry, and to help
realize a recycling-oriented society, while continuing to support volunteer activities by our employees.

15Total amount of donations/community investment by the Company or its Group companies inregistered nonprofit organizations.
TimingDonation recipients / donation details

AmountMarch 2015

Kyoto University
Office of Society-Academia
Collaboration for Innovation
Establishment and operating expenses of the Endowed
Research Chair Innovation Management Science

JPY 5.0 mn

September
2015

Joso City
Aid for damage caused by the breakdown of embankments

JPY 1.0 mn

August 2021

Star Mica Mizunaga Foundation
Operating funds

JPY 3.0 mn

Internal dissemination of the Supplier Policy
The Group provides training to employees in the sales department to ensure that they are familiar with ourpolicies regarding the supply chain. The training program covers content based on the Basic Sustainability
Policy, developing employees who can perform their duties as professionals.

16