Materiality:

Strengths and initiatives to help

“Realizing mutual growth of employees and the company”
Strengths of Mandom 6

Highly-Engaged Employees
Believing the instillation of our corporate philosophy in all employees and its implementation to be a matter of the highest priority
in order to realize “VISION2027,” our vision for 2027 when we commemorate the 100th anniversary of our founding, in 2017, thefirst year of our “MP-12” 12th Middle-Range Planning, we conducted a series of initiatives to instill that philosophy among all Group
employees with the considerable speed of just six monthsʼ time. We started by holding discussions among officers through gatherings,
then instilled our corporate philosophy among department heads positioned as “evangelists,” and finally instilled it from the various
department heads to their respective department staff through holding workshops.
Every year since 2018, for the purpose of following up on the degree of awareness among employees, we have continued to conduct
employee surveys, provide feedback results, and hold workshops in each department to address their respective issues based on that
feedback.

FY2022 survey results and Group response
1 Sustainable engagement

Sustainable engagement score

Unfortunately, our “sustainable engagement” score fell by threepoints over last year.

80.0This is presumably due to anxiety about the company,
which has struggled for the past two years, and a decline
in satisfaction. We believe that initiatives and measures areneeded to dispel these concerns.
Engagement scores were slightly lower than last year andcomparable to the Japanese standard. We will aim for the level ofglobal consumer goods manufacturers as a medium- to long-termtarget value through the resolution of issues, including surveys.

Medium- to long-term target value: 81pt*

60.0

40.0

20.0

0.0

Mandom2020

Mandom
2021

Average ofMandom Japanesecompanies
2022* Set based on global manufacturing industry standard value

Points of superiority in benchmark comparisons▲▲

Points that showed improvement compared to FY 2021
Authority/discretion▲

Points that did not show improvement compared to FY 2021
Well-being

The development of new products to strengthen the brand led
to long working hours in some departments, resulting in a lower
score with respect to consideration for employee health. We arepromoting health management and believe that employees mustbe healthy both physically and mentally as a prerequisite for theirrewarding and lively activities. We have begun efforts to rectify thissituation.

34

Mandom Report 2023

Goals/targets
This is presumably due to our high level of understanding of thestrategies of each affiliated department and the significance ofeach employeeʼs work, and the fact that Dedication to Service(Oyakudachi), the foundation of our philosophy, is instilled in
employees on a daily basis. In the future, we intend to create value
by synchronizing management strategy and organizational strategy
more closely, with the department heads as key persons.

Points of inferiority in benchmark comparisons▲

The score increased with respect to the delegation of authority
necessary to promote operations and the provision of challenging
and fascinating work opportunities. The three years throughFY2023 (fiscal year ending March 31, 2024) are positioned as a“period of transformation and challenges” in the 13th Middle-Range
Planning “MP-13,” and we assess that this has gradually begun toinstill throughout the company.
In April 2023, we implemented organizational restructuring,
including flattening of the organization and consolidation andelimination of departments, with the aim of delegating authority,
speeding up decision-making, and strengthening collaboration
among departments. We will continue to create an environment
in which employees can demonstrate their abilities to the fullest
extent.

Leadership
Employees are becoming increasingly anxious about the company
and managementʼs strategies, decision-making, and response tochange amid struggling business performance arising from the
COVID-19 pandemic. We believe that more careful and continuous
communication is necessary.
In addition to the “distribution of video messages from Supervisory
Executive Officers to employees” and “dialogue sessions between
the President and employees,” which we have implemented until
now, we have been conducting training for department heads since
FY2023 with the aim of behavioral change to realize transformation.
We believe that department heads have the role of organicallylinking management with members of each organization. We aim
to create an environment and structure in which management andemployees can promote business in unison by realizing a system
in which management strategy and managementʼs ideas can be felt
more closely through the department heads.

2 Initiatives to improve engagement

Dialogue sessions between the President and employees
About Mandom

President Nishimura held dialogue sessions with employees that continued
from FY2021 with the objective of direct communication that leads to mutual
understanding and instillation of policies.
Purpose・Realizations of things that should be addressed during period of “transformation/
challenge,” and instillation of understanding of Mandomʼs medium- to long-term direction
・Regular sharing of awareness of issues, mutual understanding of each otherʼspersonalities
・Formation of sound and solid organizational climate and workplace

September 2022–January 2023

Value Creation Story

Session schedule
Total of 44 sessions

Number of participants
Mandom Corporation employees between their teens and 30s 238 employees in total(Participants in the previous year 247 employees/Total participants 485 employees)

Each dialogue session was held with three to eight employees. All of themwere conducted face to face in principle. Group-wide shared themes andindividual themes for employees in their teens and 20s, those in their 30s,
and new managers were configured as preliminary challenges, with each
employee asked to prepare prior to engaging in the dialogue.
Materiality

The most recent sessions, whose participants were mostly young employees,
yielded some important feedback such as “Internal communication andteamwork is becoming diluted,” “There are few regular opportunities to beʻpraisedʼ or sense a ʻDedication to Service (Oyakudachi)ʼ in the course of
performing duties,” “Itʼs difficult to understand superior policies, as they are
not being sufficiently conveyed,” and “Overtime work at a level that affects
work-life balance is becoming the norm.” With President Nishimura also
sincerely accepting this feedback himself, we have already begun initiatives
to solve these issues.

Middle-Range Planning

Meanwhile, numerous positive opinions were received regarding theimplementation of the dialogue sessions, such as “Rather than giving a cutand-dried response to individual employee concerns, the President carefully
addressed them, which pleased me,” “I feel at ease now knowing that the
President has a sense of the same kind of challenges that I sense on thefrontlines,” and “There were numerous realizations through dialogue withfellow employees in the same age group, which led to improved motivation.”

Performance for the Fiscal Year Ended March 31, 2022

These dialogue sessions are positioned as a meaningful opportunity
for employees to understand and share how the company and its top
management recognize the current situation and what direction they areaiming to take. We plan to hold dialogue sessions between the president andapproximately 200 employees who have not yet participated in the session in
FY2023.

Department head training

We already mentioned that department heads are “evangelists” for our
corporate philosophy. They are the bridge between our management teamand employees in our corporate organization, and are the key persons wholead the transformation and challenges in their respective organizations.
Given that, we established new department head training as a forum for
the Company to communicate its expectations for department heads
and encourage them to change their behavior in preparation for futuretransformation and challenges.

Company Information

Designed with a number of vertical and horizontal contact points in mind,
including those between fellow department heads, department heads andsubordinates, and department heads and our management team, this training
is conducted at the Osaka Head Office in a face-to-face format.
We plan to implement the training in series over the next year, from acquiring
the mindset of a department head and the knowledge and skills to lead theorganization and its people, to developing and implementing strategies fortransformation and challenges through these efforts.

Mandom Report 2023

35

Materiality: “Realizing mutual growth of employees and the company”<Feature> The Mandom Groupʼs Human Capital Management Initiatives–MHRX (MHRX HR Transformation) enters full-fledged operation–

In 2021, the Group formulated its corporate slogan of “BE ANYTHING, BE EVERYTHING.” This is an expression of the form of new“Dedication to Service (Oyakudachi)” that we seek to realize from here on out, that being supporting all consumers to “live their own
lives” and sustainably creating a society in which they can achieve this and which is close to their ideals.
With a view to that realization, we regularly conduct ourselves so that each and every one of our employees can play an active role asirreplaceable human assets with diverse individuality and strengths (specialization) and practice Dedication to Service (Oyakudachi) byproviding new, unprecedented, one-of-a-kind value.
Additionally, amid the heightened uncertainty in our social environment in recent years in particular and the more pronounced
transformation of business models through DX, in order for us to enhance our corporate value on an ongoing basis through Dedication
to Service (Oyakudachi) for society, it is crucial that we cope with these social changes in a proper way and keep on giving rise toinnovation (creating new value) at a greater level than before.
At Mandom, we see “human assets with diverse individuality and strengths” as the true largest source of various innovations,and believe aggressive investment in those human assets to be imperative. Our approach to “human assets” in this fashion is also
consistently expressed in “Human Assets,” one of the Mandom Principles that constitute the Mandom Groupʼs code of conduct, andin “Happy individuals make a happy company,” our human resources philosophy.
Based on this idea, in order to realize “Dedication to Service (Oyakudachi)” for society and improved corporate value throughinnovation in conjunction with our management strategy, we have adopted the following five items as our main initiative areas withrespect to human assets: 1 “development of human assets” with diverse individuality and strengths, 2 new “personnel affair
system” that helps those human assets play active roles, promotion of 3 “health management” and 4 “diversity and inclusion,”and 5 practice of “work styles that enhance productivity and creativity.” We will proceed to practice the following concrete initiatives.

Management strategy
Linkage

Human asset development

Innovation

Personnel affair system

Development of human assets capable ofmaking transformations and taking on challenges

Career development
Ability development

Promotion of health management

Diverse “human assets” willbe the ones to realize these

Diversity and inclusion

Introduction of role ranking program
starting with jobs and autonomy

Work styles that enhance productivity and creativity

Human asset strategy
1 Development of human assets with diverse individuality and strengths (human assets

development policy)

In order for each and every one of our employees to grow as human assets with individuality and strengths (professional humanassets), we will need initiatives based on a multilateral standpoint that include fostering a mindset for autonomous career development
by employees themselves and the enhancement of specialized skills in each field.
At Mandom, we implement various measures aimed at the development of professional human assets within our organization.

Supporting employees in developing theircareer paths and abilities
We define human assets who engage in independent
career development as “autonomous human assets.”
In order for our employees to grow into autonomous
human assets based on that definition, we havecompiled the three pillars of “career development
assistance” made up of the dual axes of career
autonomy and ability development, the “creating
workplace opportunities” for employees todemonstrate the skills in their possession to
the fullest both internally and externally, and the“development of a foundation” to support theprevious two pillars into a system chart. Using thesepillars as a cornerstone, we establish various formsof education and programs for career and ability
development and conduct other related efforts.
36

Mandom Report 2023

Career development support system chart
Career development assistance
Career autonomy axis

Ability development axis

Accompanies examinationof career view andorientation that forms
premise for mastering
specialized skills

Goes from conventional“equal” ability
development to “selective”
ability developmentthat expands individual
employee specialization

Development of afoundation that supports
career autonomy

Creating workplace opportunities

Provides forums thatallow employees todemonstrate skills in theirpossession to the fullest

Prepares environment that enables employees to demonstrate
diverse individuality to the fullest and challenge themselves tobecome the professional that they want to becomeImplementation of DX education aimed at creating new value●●

About Mandom

Our belief is that in developing employeesʼ abilities, the development of abilities and skills in the areas of digital and DX is particularly
essential elements in future new value creation by Mandom. Having launched the DX Promotion Committee in May 2021, we are
currently pursuing the promotion of DX companywide, and are tackling the following two points in order to develop human assets
capable of creating new value by Mandom amid that transformation.
Select and train next-generation digital leaders
Implement digital education for all employees that fosters company culture of DX promotion

CSR Information
Mandom Groupʼs CSR KohDoh
Practices > Labor Practices >Human Resources Development▲

Initiatives developing and educating human resources

Value Creation Story

The recognition of DX initiatives at Mandom and our accompanying promotion system
satisfying certification standards based on the Digital Governance Code set forth by the
Ministry of Economy, Trade and Industry (DX promotion indices) as well as our information
disclosure efforts being adequately conducted to stakeholders, among others, led to Mandom
being a certified operator under the Digital Transformation Certification on August 1, 2022.

Please visit our website for information on standard training, employee education, andcareer support.

Internal Environment Development Policy
2 Introduction of job-type personnel affair program in line with
With a view to the creation of an organization and human assets capable of making
transformations and taking on challenges in order to realize Dedication to Service (Oyakudachi)
through the creation of new value, we initiated reforms of our human resources systemstarting with jobs and career autonomy (“Mandom HR Transformation,” or MHRX for short).
As part of those reforms, we introduced a role ranking program based on jobs in April 2023.

Materialitytransformation of personnel affair systems

https://www.mandom.co.jp/release/2023033101.html (Japanese Only)

Middle-Range Planning

Based on these reforms, through clarifying the responsibilities and skills required of eachrole, we will conduct fair and impartial evaluations and treatment in accordance with theextent of that role to enable our employees to sense worth in their work and, in turn, realizea system that can be tied into the creation of new value.
3 Promotion of health management
Based on the belief that healthy employees enhance the valueof the company, Mandom promotes the creation of workplaces
where employees can gain job satisfaction and all employees canparticipate in a comfortable work environment to achieve theirown well-being.

Performance for the Fiscal Year Ended March 31, 2022

As a result of these initiatives, Mandom has been selected underthe 2023 Certified Health & Productivity Management Outstanding
Organizations Recognition Program (large enterprise category) in
March 2023.

Main
measures・“Enhancement of health management promotion
system” through health guidance by and opportunities
to consult with public health nurses
・Placement of Health Management Promotion
Committee members at each business site
・“Promotion of visualization of health management”
in which information on health literacy and health iscommunicated to coincide with opening of internal
health management portal site
・“Implementation of health seminars” online

In June 2023, the Health Management Alliance was established
for the purpose of “designing a model for health management, co-creating solutions to make itwork, and implementing them in the industry.” Mandom will participate as a member of the “PracticeGroup” that co-creates a health management model and results through the sharing of initiatives ofparticipating companies. Through our participation, we will further promote our health management
by studying and implementing various initiatives based on the collective knowledge gained within the
Alliance.

Mandom Report 2023

Company Information

At the same time, “rectifying long work hours for certain employees” is a challenge of ours in ourefforts to further promote health management at Mandom. At present, average overtime work permonth for our employees is 15.5 hours. However, it has come to light that certain employees actuallywork long hours in excess of 30 per month (calculated with full-time employees including managers at Mandom Corporation (nonconsolidated) as the target using average hours per month for the three-year period between FY2020–2022). We believe that byrectifying all long work hours and creating an environment in which our employees can work soundly, we will be able to realize the wellbeing of our employees themselves as well as the creation of various forms of new value and a further improvement in corporate value
through that well-being. With that point in mind, Mandom has adopted a new target of “achieving ten hours or less of overtime work
per month on average for all full-time employees (including managers) by FY2027,” and will proceed to tackle this target.
37

Materiality: “Realizing mutual growth of employees and the company”

4 Promotion of diversity and inclusion
Based on our idea that “human assets with diverse individuality and strengths” are our true largest source of various innovations, wewill place a particular focus on active engagement by “female employees,” “midcareer hires,” and “non-Japanese employees,” andfurther promote initiatives geared towards diversity and inclusion.

Promotion of active engagement by female
employees
It is essential to have diverse perspectives rather thanthe uniform viewpoints such as “Japanese,” “men,” and“new graduates” in order to provide Dedication to Service(Oyakudachi) to consumers in the midst of diversifying values.
We believe that one of these perspectives is that of women,
and as such, we have established gradual conduct plans aimed
at promoting active engagement by women and realizing asociety in which womenʼs individuality andabilities can be fully manifested, and havepromoted initiatives to that end.
Recognition of the outcomes of such initiatives
led to Mandom acquiring the highest rankof three stars for the “Osaka City Leading
Company in Womenʼs Participation” ranking in June 2022 aswell as the “Excellence Prize” in the Large-Scale Enterprise
Category for 2022ʼs “Osaka City Leading Company in WomenʼsParticipation” in February 2023.
Additionally, in order to promote further active engagementby our female employees in the future, we have establisheda new indicator in the form of “female manager ratio of atleast 20% by FY2027.” To achieve that, we will proceed to
implement a number of initiatives that include formulating amanagerial position promotion plan for female employees
every single year, conducting various forms of training forfemale employees, and enhancing various forms of educationfor our management and managers to ready them for active
engagement by women.

・Proactive promotion of female employees to manegerial
positions in order to create various innovations byleveraging diverse individuality and strengths
・Personnel reassignments/postings and development
involving group bases with a view to active engagement
as global human assets
・Participation in career design forums for different
industry sectors

Example ofinitiatives

Trends in actual female manager ratio and future indicators（Persons）

（%）

40

24.0

20.0

30

18.0

11.9
20

6.9
10

0

6.0

8

10

…

FY2027target0.0

Notes:・Results of Mandom Corporation (non-consolidated) as of March 31 of each year
・The manager ratio was calculated based on the provision of the Act on the
Promotion of Womenʼs Active Engagement in Professional Life (Act No. 64 of
2015).
・Managers include General Managers and Managers. Executive Officers are notincluded.

We are promoting work-style reform to improve “productivity
per unit,” “growth of individuals and job satisfaction,” and“creativity.” Through this work-style reform, we will realizea work style that increases productivity and creativity while
employees demonstrate their individuality and strengths to thefullest without being bound by various constraints.

Mandom Report 2023

15

March 31, March 31, March 31,
2020
2021
2022

・Abolishment of core time as a general rule as wellas “introduction of flexible working hour system” thatenables employees to work flexibly during work hours,
not just at the start and end of them・“Introduction of work-from-home system” that covers“family residence” based on balance with caregiving
・Proposing hybrid-style work with fusion between atoffice and at-home work by utilizing the above twosystems

productivity and creativity

38

12.0

8.4

5 Practice of work styles that enhance

We are also promoting the proactive taking of childcare leaveby employees. As part of our general employer action plan
(between April 1, 2020 and March 31, 2023) based on the
Act on the Promotion of Womenʼs Active Engagement inProfessional Life, we adopted the goal of achieving 100% ofchildcare leave taken by both male and female employees.
Looking to achieve that goal, we conducted efforts suchas having the Human Resources Division make proactive
announcements aimed at having eligible employees takechildcare leave and requiring three-party interviews between all
eligible employees, their superior and the Human Resources
Division. The results for each fiscal year during the plan period
are as shown in the table on the right. We view this indicator
as something we should keep on achieving. Going forward,
we will continue to tackle it as we strive to continuously
achieve 100% childcare leave taken by both male and female
employees.

Left axis:■ Number of female
managers
Right axis:
Female manager ratio

Example ofinitiatives

Trend in percentage of childcare leave taken（Persons）

32

（%）

121.1

40

100.0

125.0

93.8

100.0

70.0

75.0

100.0

24
16

47.1

50.0

8
0

25.0

9

23 12

7

FY2020

FY2021

FY20228

15

0.0

Left axis:■ Number of employees
who have taken
childcare leave (male)■ Number of employees
who have taken
childcare leave (female)
Right axis:
Percentage ofchildcare leave taken(male)
Percentage ofchildcare leave taken(female)Supplementary information
・Results of Mandom Corporation (non-consolidated) as of March 31 of each year
・For percentages of childcare leave taken, percentages of childcare leave, etc. taken
under Article 71-4, item (i) of the Ordinance for Enforcement of the Act on Childcare
Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring forChildren or Other Family Members (Ordinance of the Ministry of Labor No. 25 of 1991)
were calculated based on the provisions of the Act on Childcare Leave, Caregiver
Leave, and Other Measures for the Welfare of Workers Caring for Children or Other
Family Members (Act No. 76 of 1991).
・For the results of male employees for FY2021, given that certain employees who were
eligible to take childcare leave in FY2020 took that leave in FY2021, the number of
employees who took childcare leave in FY2021 exceeded the eligible number, yielding apercentage result of over 100%.