Producing an
employee-friendly workplace

Diversity efforts / Promoting work-life balance

Promoting female employees

Welcoming international employees

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. Every year, we hold a seminar on promoting women's
success at work, aimed at female candidates for management positions to encourage them tobroaden their perspectives and advance their careers. We also hold a seminar every year
aimed at male managers on the subject of promoting women's success at work. In this way,
we are creating a system that supports female employee success.

Work related to the enforcement of the Act on the Promotion ofFemale Participation and Career Advancement in the Workplace
Following the enforcement of the Act on the Promotion of Female Participation and Career
Advancement in the Workplace in April 2016, we have been engaged in promoting women'ssuccess at work with the three goals below. They are designed to encourage femaleemployees to demonstrate their potential and develop their careers in many departments overa period of five years from April 1, 2016 to March 31, 2021.

Goals❶ To raise the proportion of female subsection chiefs to that of male subsection chiefs, we will aim
to promote 10% of female candidates to the position of subsection chief this term.

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

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

Employment of challenged persons

Users of the continuous employment system

In order to realize a society whereeveryone's possibility is broadened, we
actively hire challenged persons. By
doing so, we found that employees
become more considerate toward others
and that it creates heightenedawareness.

Since January 2015, we have been activelyengaged in creating an environment in which
senior citizens can effectively put their careers
to use. We are increasing wages for employeesw h o c o n t i n u e t o w o r k w i t h u s , t h e re b y
introducing a system that makes it worthwhile
to rise to positions of responsibility.

We invite international employees working at overseas local subsidiaries to the motherplant in Japan and welcome them as trainees to improve their techniques and skills forhuman resource development. By bringing back and utilizing their knowledge andexperiences learned in Japan, localization is facilitated and globalized know-how ishanded down. We also welcome technical interns from overseas local subsidiaries.
Working at a specific production site for a certain period of time in Japan allows them toreturn home and contribute to work site improvements.

System to support balancing work and childcare
We are working to support creating abalance between work and family to havean employee-friendly workplace andp ro m o t e w o m e n ' s re m a r k a b l e w o r k .
According to the regulations regardingchildcare leave, employees are able to takeleave until the child is two years old. Special(paid) leave is also available to attend tosick or injured children: five days areprovided to employees with one child andten days to employees with two or morechildren. In addition, we offer a system of
reduced working hours, which can be used
for up to three years (available until the childfinishes third grade in elementary school).
We also institute five days of special paid
leave when a spouse gives birth to a baby.

List of systems to support balancing workand childcare (enforcement year)
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 childcare leave (2005)
Regulations regarding childcare leave amended(leave period extension) (2005)
System of reduced work hours for childcare (2008)
Family care leave (2010)

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Producing an
employee-friendly workplace

Human resource development

Employee Education

Global HR Development

Employee Education is of fered by the Global HR Division asopportunities for INOAC Group employees to grow and enhancetheir abilities. As part of Employee Education, 50 types of programs
are available that offer a wide range of training, from introductory
training for new employees to those for employees in management
positions. The training programs are available throughout the year. In
addition, we also offer an OJT system and support for acquiring
qualifications.

Stratified Education
The company offers Stratified Education for employees to understandthe roles they are expected to fulfill at different levels of employment
as new employees, young employees, mid-grade employees andmanagers. The programs help employees acquire the knowledge andskills necessary to fulfill such roles. Stratified Education combines abalance of awareness education, knowledge education, skills
education and management education to improve the abilities of ouremployees. Some programs include lodging training and networking
within the company.

Professional Training
Professional Training aims to provide employees with basic knowledge,
specialized knowledge and skills required for their fields of work.
Sales sections: Trainings that aim to enhance the sales skills of employees atthe beginner and medium levels.
Engineering sections: Trainings to learn about the basics of engineering (frommaterial design to formation to post-processing) and about intellectual property(such as drafting applications andconducting patent searches), etc.
Manufacturing sections: Trainings
on the basics of manufacturing,handling machinery and electricity,etc.

The INOAC Group deploys its factories and offices globally in more than 50 locations. In order to develop the human capital that isready for progress in globalization, INOAC stresses its Global HR Development activities. One such program is the Pre-Overseas
Work Training, which is held over the course of a year. Units are prepared for employees who are candidates for overseas posts on
topics such as risk management, mindset, communication and specialized education, all of which facilitate a reformed globalawareness. The training system is systematic and also includes an opportunity for candidates to listen to the experiences of senior
employees posted abroad. Furthermore, starting this year, we rolled out the new Trainee System, which allows young employees
to experience practical training abroad. With this program, we are aiming to develop global leaders at an early stage, who will go
on to fulfill central roles, whether in Japan or abroad, as intermediaries to the world.

Harassment prevention
INOAC implements the following measures against
harassment in the company.
Declaration and publication of company policy
INOAC declares the company policy concer ningharassment including sexual and power harassment.
Establishment of consultation desks
Consultation desks to address harassment in theworkplace are established in the Global HR Division ineach area on a nationwide scale. Consultation desks for
women and labor union consultation desks are alsoestablished.

Personal development
The Distance Learning Program and Qualification Acquisition
Suppor t Program are available for employees who arelooking for motivation to learn. The Distance Learning
Program offers 100 courses every year and participants geta refund of half the cost upon completion of the course. With
the Qualification Acquisition Support Program, the company
sponsors employees to take qualification exams that havebeen recognized by the regulations. Through these sorts ofcontinuous ef for ts, the entire company is engaged insupporting personal development.

In-house research on actual conditions
The Power Harassment Questionnaire is administeredannually to all employees to gain an understanding of theactual conditions.
Harassment education
All managers at INOAC are required to attend theHarassment Lecture.

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Producing an
employee-friendly workplace

Safety and health / Disaster prevention

Principles and basic policy for safety
Safety is the basis of the very existence of the company.
All accidents and hazards are preventable.
Safety is achieved through the awareness and responsible
action of each employee.
Based on the safety policy above, safety is prioritized above all,and this is demonstrated through action. The practice to stop,call and wait when a risk is predicted is also being followed.
Our yearly activity plans include activities organized by theMinistry of Health, Labour and Welfare and monthly activities
that past disasters have taught us to be of critical importance.
We strive to improve the safety, health and disaster prevention
levels at all of our locations by repeating training and improving
any weaknesses we find in our safety, health and disasterprevention assessments.

Safety Practitioners Conference
1. Summary from the FY 2018 Conference①Reports on safety, health and disaster prevention activities②Statistics and analysis of disasters in the INOAC Group③Notices and changes in the Industrial Safety andHealth Act
2. Education and awareness raising to prevent
occupational accidents①Efforts to prevent occupational accidents• Kyushu and Tohoku (via TV conference)
3. Policy for FY 2019①Explanation on safety,
health and disasterprevention activities inFY 2019
②Proposals from theWork Union
Safety ConferenceAll INOAC safety and health committee meetings

Activities to enhance employee health

The following safety activities are led by the top
management and attended by all members of the company.

Managers are improving to enhance their skills andknowledge so that they can lead by example.
◎Establishing mental health and harassment consultation desks◎Establishing an outdoor smoking
space to separate smoking◎Reducing road surface temperature
as an environmental measure◎Organizing education and trainings
by industrial physicians and thehealth insurance association
Heat insulating pavement◎Taking preventive measures (reducing road surface temperatureby reflecting infrared rays)
against heatstroke◎Central Safety and Health Committee meeting: Heldfour times a year
◎Field inspection by officers: Held twice per year
◎Safety Practitioners Conference: Held six times per year
◎Safety and Health Committee meeting at eachlocation: Held monthly
Through these activities, INOAC enhances the company-wideawareness of safety,
health, disasterprevention and building
organizational culture. We
hold these meetings onsafety to prevent thereoccurrence of disasters. Field safety inspection by top management

Developing safety-conscious workers with
the Safety Dojo
The Safety Dojo lets employees experience work hazards
in safe settings using 15 simulators that enable theemployees to see, hear and feel the hazards. Theexperience helps build a workplace capable of achieving
the zero-disaster standard by enabling the employees tobecome more sensitive
to potential hazards,
able to predict themand ensure safe work
practices.
Safety dojo (1,000 people have participated)

Disaster prevention activities
Acting under the Crisis Management Regulations helps minimize
damage by natural and other disasters and ensures early restoration.
1. Large earthquakes◎Measures to alleviate earthquake damage to buildings and facilities◎Safety and disaster prevention equipment and stockpiles
for earthquakes◎Post-earthquake response◎Stockpile of mattresses to contribute to the community
2. Measures against fires, storms, and floods◎Prevention of fires and explosions in manufacturing facilities◎Preparation and establishment of structures against stormand flood damage◎Establishment of a weather
information distribution system
3. Disaster prevention education◎Establishment of a disasterprevention training center
Disaster prevention training center
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