The Driving Force/Booster of Value Creation — Sustainability Occupational Health and Safety

Occupational Health and Safety
We are continuously promoting organizational safety, security and health activities with the aim of eradicating
occupational accidents, including those in the supply chain, and achieving a safe work environment.

Basic approach

Health & Safety System

Our Health & Safety Policy is shown below. Under this policy
our headquarters and business sites prepare health and safety
management policies that suit the actual conditions at theworkplace each fiscal year.

Taiheiyo Cement Health & Safety Policy

We recognize that ensuring the health and safety of ouremployees is a cornerstone of our company, and we invest
appropriate management resources to the prevention ofoccupational accidents and diseases in accordance with theIndustrial Health and Safety Act and the Mine Safety Act, andefficiently implement the fundamental policies shown below.

Fundamental Policies
1 Promote health and safety activities through consultation andparticipation between management and labor, with the aim ofeliminating occupational accidents.
2 Ensure the health and safety of our employees and those of ourcontractors by complying with health and safety-related laws
and regulations, the health and safety management regulations
created by us, and health and safety regulations created by ourbusiness sites.
3 Strive to improve the level of health and safety by actively
promoting the implementation and operation of our
Occupational Health and Safety Management System, and bycontinually ensuring the fundamental safety of our work andequipment, providing education and training, and raisingawareness of health and safety, as well as continually improving
our Occupational Health and Safety Management System.
4 Constantly improve workplace environments and work
procedures by applying improved technologies and new healthand safety information via the companywide, business site andgroup affiliate health and safety committees.
5 Ensure health and safety throughout the Taiheiyo Cement Groupby promoting action to eliminate occupational accidents under
the leadership of the companywide, business site, and groupaffiliate health and safety committees.

Safety Objectives (KPIs) for FY2023
KPI(1) Fatalities: 2(2) Lost-time injuries: 49(3) Total occupational accidents: 120(4) Absence rate: 0.935%

Eliminating Accidents Caused by Breaking
Workplace Rules
15% or less of total occupational accidents (ratioof accidents due to rule breaking)Violations, etc.,of the 7 safety principles: 26%• There were 9 cases of accidents involving"touching moving machinery," indicatinga lack of thoroughness. There were somecases of violations due to work priority.

Eliminating Heatstroke-related Accidents
Zero heatstroke-related accidents

Preventing the Recurrence of Similar
Accidents
Halving the three most common causes ofaccidents• Being trapped by or dragged into equipment• Falls from height• Flying/falling objects

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Achievements and Issues This Fiscal YearFY2023 Company-wide Health & Safety
Committee Objectives(1) Zero fatalities across the group (CSR
Objectives for 2025)(2) 30 or less lost-time injuries across the group(3) 80 or less total occupational accidents acrossthe group(4) Absence rate of company employees: 0.5%level

No. of heatstroke-related accidents: 7• Reduction the risk of heatstroke occurring
whilst recognizing resistance to heatstroke
varies from person to person

Plans for Next Fiscal YearFY2024 Company-wide Health & Safety Committee Objectives(1) Zero fatalities across the group (CSR Objectives for 2025)(2) 30 or less lost-time injuries across the group(3) 80 or less total occupational accidents across the group(4) Absence rate of company employees: 0.5% or less

* Excluding the absence rate due to COVID-19 cases

Ratio of accidents due to rule breaking: 15% or less• I mprove comprehension through periodic education on rules• I dentification and improvement of facilities and behaviors that
violate rules•G uidance aimed at eliminating violation conditions throughregular patrols• S trengthen prevention of accidents among employees andworkers with less than 3 years experience
Zero heatstroke-related accidents• I mproved understanding of accidents through prior education• R eliable response to heat index• I mprovement of the work environment (development of rest
areas, cooling systems, etc.)• Guidance on checking the condition of countermeasures throughsafety patrols• E xpanded use of wearable devices to reduce risk according toindividual differences
Halving the five most common causes of accidents+11 case (55 cases) compared
to previous year
• Promote raising awareness and mutual
consideration through measures such as
displaying safety points at accident sites.

* Added "falling over" and "contact with high or low temperature objects".

• Confirmation of effectiveness of countermeasures throughaccident study support• Conduct case study education using the Accident Information
Database• Continual operational checks of accident prevention measures(periodic on-site patrols)• Promote "visualization" with signs, work procedures, etc.

Under the Taiheiyo Cement Health & Safety Policy weestablish health and safety management regulations thatcover the basic principles of the group’s health and safety
management, and promote health and safety activities. The
aim is to create comfortable working environments while also
ensuring the health and safety of our employees and those of
our contractors at the group’s business sites and other locations.
We established the Company-wide Health & Safety
Committee, chaired by the officer in charge of safety, as aSpecialized Committee under the Sustainability Management
Committee, which is itself under the direct oversight of
the Board of Directors. The Company wide Health & Safety
Committee supervises health and safety activities held by our
various business locations. It also collects safety-related datafrom not only the company itself but also our group companies
and provides guidance.
All plants, quarries and branches under the jurisdiction of
our divisions at Headquarters, and all group companies, havea health and safety committee consisting of representatives
from both management and labor, as well as a cooperative
committee promoting the health and safety-related activities ofeach business site.
Health and safety management at cement plants andquarries in Japan is carried out under our OSHMS*.
* OSHMS (Occupational Safety and Health Management System): Guidelines issued by
the Ministry of Health, Labour and Welfare in 1999. A framework for reducing potential
dangers at workplaces and promoting comfortable work sites by autonomously
practicing continuous, uninterrupted health and safety management.

Health & Safety System

Board of Directors
Sustainability Management Committee

Company-wide Health & Safety Committee
Chairperson: Officer in charge of safety

Specialized committees

Departments at Headquarters

Health and Safety Training

We have established procedures for the implementationof health and safety training, and are committed to providing
such training so that work can be carried out safely. Training
is provided at all our business sites. It can be categorized intotraining for newly-hired employees, training for newly-hired
employees with professional experience at another company,
specialized courses, training for newly-appointed managers,
skills training, and training for contractors when they start workat a site.

Occupational Accident Reports and Database

Any occupational accident is reported to the Companywide Occupational Health & Safety Committee immediately,
regardless of how insignificant it may seem. We promptly post
the details of any accident on the group bulletin board as a step
towards avoiding any recurrence.
We have maintained a occupational accident databasesince FY2009. It covers accidents involving employees of
the company and group companies as well as those of all
our contractors, including temporary workers. It categorizes
accidents according to the “4 Ms” (men, machines, methods
and management), analyzes the causes of unsafe behavior
and situations, and systematically stores occupational accident
review reports that include details of the countermeasurestaken. The database is also translated into English and Chinese
so that it can be widely used at our overseas business sites.

Occupational Accidents Registered in the Database*(Accidents)

Headquarters Central Research
Each plant
Each branch
Health & Safety Laboratory Health & Health & Safety Health & Safety
Committee
Safety Committee
Committee
Committee

Each quarry
SafetyCommittee

The Health and Accident Prevention
Safety Cooperative
Cooperative
Committee
Committee

SafetyCooperative
Committee

Contractors

is required for leaders of work groups. To further improvethe capabilities of those leaders, as of FY2016 we requireparticipants in the certification seminars held at the plants tohave completed the foreman training course stipulated in the
Industrial Safety and Health Act.

Group companies
Health & Safety
Committee
Safety Committee

Fatal

Leave of absence required

No leave of absence required

150
121

120
90

87

94

2019

2020

120
103

60
30
0

Safety Operation Officer Certification System

Since FY2008, we have been using the Safety Operation
Officer System which emphasizes the importance of improving
leadership capabilities to reduce occupational accidents.
This system provides safety operation officer certification that

2021

2022

2023

(FY)

* Taiheiyo Cement and group companies that are business sites required to submit
accident reports under our Safety, Security and Health Management Regulations are
the subject of aggregation75

Occupational Health and Safety

The Driving Force/Booster of Value Creation — Sustainability Occupational Health and Safety

Health and Safety Promotion Activities

The Company-wide Health & Safety Committee set thefollowing objectives for FY2023: zero fatalities, limit lost-time
injuries to 30 or less and the total number of occupational
accidents to 80 or less, while also setting the absence rate in
the 0.5% range. We therefore engaged in health and safety
promotion activities with a focus on: (1) improving the levelof safety management at group companies in order to achieve
our CSR Objectives for 2025, (2) eliminating accidents causedby breaking the rules, (3) eliminating heatstroke-related
accidents, (4) preventing the recurrence of similar accidents,(5) complying with health & safety-related legislation, and(6) preventing the spread of COVID-19 infections (preventing
employees from becoming infected or infecting others).
There were 120 occupational accidents, including two
fatalities, and a 0.935% absence rate due to the spread of
COVID-19 infections, so we failed to achieve the target. It is now
more important than ever for each business site to gather theopinions of workers, and for all employees to work together onsafety, security, and health issues.
Fatalities

Lost-time injuries

Total occupational accidents
Absence rate

2 (2)49 (36)120 (103)

operations and equipment, we will promote the prevention ofsimilar accidents and their recurrence.

Absence Rate

FY2019 FY2020 FY2021 FY2022 FY2023

Absence rate

0.580

0.337

0.604

0.935

(Unit: occurrences)

FY2019 FY2020 FY2021 FY2022 FY2023

By region

By gender
Injury or
sickness

Japan

81

92

117

98

115

Overseas

6

2

4

5

5

Male

83

89

120

100

112

Female

4

5

1

3

8

Injury

83

79

103

97

113

Sickness

4

15

18

6

7

45

40

52

40

51

42

54

69

63

69

Our
Our employees employees
or contractors
Contractors

Breakdown of Accidents by Type*FY2022* (figures in brackets are FY2022 results)

76

0.647

Occupational Accidents*

0.935% (0.604%)

Regarding the elimination of heatstroke-related accidents,
which we have identified as a key issue since FY2021, we aremeasuring WBGT (Wet Bulb Globe Temperature) values (heatindices) at each work site, have established break frequencies
based on WBGT values, and are promoting improvements inwork environment and work management. There were 7 casesof heatstroke in FY2023 (FY2022: 6 cases). Heat tolerance varies
from person to person, and wearable devices are being used toreduce the risk of developing symptoms. In addition, regarding
accidents involving the violation of workplace rules remained
high, accounting for 26% of all occupational accidents, so
we are progressing with guidance through periodic patrols,
education on rules, improvement of equipment and behaviors,and "visualization" of safety activities, such as displays of
accident lessons learned at the locations of the accidents.
Analysis of occupational accidents found that approximately
40% of accidents involved workers with less than three years ofexperience, so we will enhance initiatives to prevent accidents
involving less experienced workers.
Also, regarding accidents according to type, "trapped byor dragged into equipment" accidents remain high, while thenumber of "falling over" accidents is on the rise. By reviewing
the essence of safety measures from the perspective of both

Non-consolidated (Unit: %)Being trappedby or dragged
into equipment
17%

Other
23%

Falling fromheight 11%

Reaction to operation/
forced operation 8%
Collision 4%
Contact with highor low temperature
objects 8%

Fallingover
15%

Flying/falling objects
16%

Reaction tooperation/forced
operation 4%
Collision 4%

Contact with highor low temperature
objects 13%

Fallingover
18%

Being trappedby or dragged
into equipment
24%
Falling fromheight 12%
Flying/falling objects
12%* Taiheiyo Cement and group companies that are business sites required to submit
accident reports under our Safety, Security and Health Management Regulations are
the subject of aggregation

Initiatives for ISO 45001

In March 2023, a transportation company worker was run
over and killed by another company's vehicle at the cement
shipping yard of an overseas group company. The direct cause
was walking in a no-walking area, but another indirect factor
was inadequate visualization of the separation of the flow lines
between people and vehicles. We promote thorough separationof lines of flow between people and vehicles (work and walking
areas are defined and made visible with signs, paint markings,etc.) and the practice of pointing and calling out to others at all
workplaces.

In March 2018, the ISO 45001 standard for OSHMS
was established by the International Organization forStandardization. Since 2007, we have been operating OSHMS
based on the guidelines given by the Ministry of Health, Laborand Welfare. As an international company, in addition to quality(ISO 9001) and environmental (ISO 14001), we obtained ISO
45001 certification for Health and Safety for our Kamiiso andOita Plants.

(3) Expanding Safety Activities to Group Companies

The Company-wide Health & Safety Committee provides
support for safety activities at group companies. It started
conducting safety surveys at the group’s business sites in Japanand overseas in FY2019. Safety surveys were conducted atfour business sites in Japan and one overseas in FY2023. In
addition, at the Kumagaya Plant, safety personnel from fourGroup companies exchanged opinions on safety activities andreceived training using hazard simulation equipment.
Our group companies will continue to improve the level ofsafety management going forward.

Safety activity support (Nghi Son Cement Corporation)(4) Ensuring the fundamental safety of work
(acquisition of utility model rights)

Posting of warning to drivers (Taiheiyo Cement Philippines, Inc.)

FY2023Other
14%

Examples of Accident Prevention Initiatives(1) Recurrence prevention measures(in response to fatality)(2) Experiential Safety Training

In order to boost the safety awareness of our employees
we hold safety training where they experience risks inherent
in familiar operations. In FY2019 we introduced experiential
safety training equipment such as VR (virtual reality) devices atall our cement plants for employees to experience simulated
dangers related to safety harnesses, rotating equipment,
electricity and heavy objects suspended from a crane. We also
set up a system that can provide effective training for younger
or less experienced employees.
At each plant, we are striving to improve safety awarenessby adding hazard simulation equipment, providing safety
simulation training using on-site equipment, and combining
hazard simulation equipment training with VR training.

Each plant is working to make its operations and facilities
intrinsically safe by reflecting the opinions of its workers.
The Oita Plant has been striving to make the work ofcleaning the returned powder from the return roller of belt
conveyors intrinsically safe, and has developed a "safety coverfor self-aligning return rollers" that enables safe work without
stopping the belt conveyor, and obtained a utility model patentin February 2022.

Safety cover for self-aligning return roller
Registration No.: 03235767 (February 3, 2022)(5) Ensuring the Safety of Foreign Workers

The number of foreign workers is increasing each year and
we are becoming multinational. At our cement plants we are
striving to ensure safety through graphic displays in educational
materials, multilingual displays, and using DVDs.
VietnameseIndonesian
Simulated experience of an accesshole closing and trapping fingers(Ofunato Plant)

Safety training using VR(Saitama Plant)"Safety First" was translated into Vietnamese and Indonesian and posted in the plant(Ofunato Plant)

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