areness of the external environment

Aw

・ Need for the further acceleration of efforts towards reducingi

R sk s・ Need for a reduction in the environmental impact ofeconomic activities for the continuation of business activities

・ Impairment of corporate value and reputation due tostagnation in the reduction of substances that have animpact on the environment and the occurrence of serious
environmental accidentsEgreenhouse gases given that the movement towards realizing adecarbonized society is spreading worldwide

・ Increase in the costs of raw materials and manufacturingcosts due to stricter regulations related to the prevention ofglobal warming
・ Increase in capital investments in response to the greater
severity of natural disasters

Opportunities

nvironment

・ Improve corporate value and reputation through environmental analyses-assessments
and conservation activities

Society・Decrease of job satisfaction directly links to lower
organizational performance

・Improve job satisfaction to achieve improved organizational performance・ Declining size of the working-age population
・ Increased interest in health
・ Women’s participation in society
・ Diversification of lifestyle
・ Increased respect for human rights and fair labor practices
・ Ongoing demands on systems for the management ofoccupational health and safety

・ Unless health management and occupational safety andhealth are properly addressed, organizational strength will
not improve.
・ Failure to be aware of human rights can lead to lawsuits andadministrative penalties, reduce corporate value, and lead toa loss of human resources.

・Appropriately address health management and occupational health and safety challenges
and improve organizational capability ・Appropriately deal with issues concerning human rights and fulfill our responsibilities as acompany

・ Recognition that continuously working to reinforce
corporate governance and risk management functions isimportant for a company
Governance・ Revision of the Corporate Governance Code in 2021
・ Continuation of the occurrence of quality fraud issues andmaterial defects in terms of internal controls at listedcompanies

・ Need for a robust supply chain to be built throughcooperation transcending corporate and organizational
barriers

Value provided

・ The market in the future will demand not just products thatare competitive in terms of price and quality but also
products that contribute significantly to the environmentand society

・Loose the trust the local community in which the company isbased makes it impossible to continue business activities

・Earn the trust of the local community in which the company is based, stabilize our business,and increase our corporate value

・ The inability to quickly and flexibly accommodate theincreasing sophistication of corporate governance leads to an
impairment of corporate value in the medium to long term

・ Increase our corporate value by promoting corporate governance in line with theCorporate Governance Code・ Violations of the law and scandals cause significant damage
and, in some cases, negatively affect the company
continuation
・ Loss of profitability
・ Deterioration of investment profitability
・ Increased funding costs

・ Instability in terms of the supply of raw materials due togeopolitical risks, changes in the world order, resource
nationalism, and other factors

・ Increase our corporate value by endeavoring to prevent violations of the law andscandals through a thorough commitment to compliance・Improve the level of trust customers have in the company by maintaining a stable supply

・Reduce costs through planned production

・ Difficulty in securing sustainable sales as a result of misjudging ・Propose products and solutions that meet the specific needs of each customer

next-generation market needs
・Promote sustainable innovation

PB kK I

eduction of greenhouse gas emissions

nvironmental conservation

・ Initiatives to deal with environmental issues must be carried out proactively as it is acommon challenge for humankind as an essential requirement in our corporate activities.

・ Yearly generation of waste : 10,000 tons or less・ Recycling rate : 40% or more

mproving job satisfaction

・ To enable the company to achieve sustainable growth and create new value, it is necessarythat we develop a proper work-life balance, foster a workplace environment in which adiverse range of individuals can play an active role, and cultivate human resourcesaccordingly.
・ We should develop a system to promote the fortification and growth of our human capital.
・ We should review our operational processes.

・Percentage of female applicants for new employment : At least30%

Promoting health management and occupational health andsafety

・ As a company whose corporate philosophy is , We are Treating Humanity Treasuring
Technology With Good Care, we need to take the workplace environment of employees into
account, focus on maintaining and improving health, and provide an environment in which
the abilities of each and every individual can be harnessed.

・Specific health guidance implementation rate : 100%・Number of industrial accidents resulting in time off work : 0・ In order to coexist with local communities, we are responsible as a company to engage incommunity-rooted activities that contribute to society and communications at our businesslocations and cultivate a relationship of trust with local communities.

・Carry out activities to contribute to society (Clean-up activities)

einforcing corporate
governance・ We need to reinforce our system of governance by accurately ascertaining changes in theexternal and internal environments, rapidly proceeding with decision making and theexecution of operations, and aiming to realize management that is fair and highlytransparent.
・ We should improve the operations of our company-wide risk management system.

・Carry out officer training

Thorough compliance・ Since violations of the law and scandals lead to substantial damage and, in some cases,
could negatively affect the continuity of operations, compliance awareness needs to beproperly instilled in our employees.

・Raise compliance awareness

REIC

ontributing to local
communities

R・ Increase our corporate value by increasing profitability through the further monitoring ofimportant management metrics
・ Ensure the future viability and soundness of investments
・ Efficiently manage funds by studying optimal financing that takes financial soundness
into account and curtailing our policy-based shareholdings

ac ground of importanceateriality

・ Climate change and global warming are major issues that are also tied to the continuity ofour business.
・ Initiatives to determine and reduce greenhouse gas emissions are an important issue interms of measures to combat global warming.

・ Improve competitiveness through the establishment of new low-carbon anddecarbonization technologies for manufacturing
・ Improve corporate value and reputation through a proactive stance for the attaining adecarbonized society

・ Recognition that responding appropriately to significant
changes in the environment surrounding companies andhuman resources and continuously improve ourorganizational strengths are important issues

・ Recognition that how we respond to the rise of social values
is an important issue for corporate management

M・Reduce GHG emissions in FY2030 by 23% over FY 2020

・ In order to stably provide higher quality products and services, we will need to build a robust
supply chain extending from the suppliers of raw materials to the customers to whom we sell.

Supply chain management

・ We need to lessen risks to society and the environment throughout the supply chain andrealize business sustainability.

・Administer CSR questionnaires to suppliers・ We should promote our BCP

Promoting value-generating
development

・ It is important that the provision to the market of products and solutions that areenvironmentally-friendly and that meet the needs of clients help realizing a sustainable
society, differentiates what we offer from what our competitors sell, and enhances theprofitability of our business.

・Ratio of sales of environmental contribution products to total
sales : 10% or more・Number of patent applications per year : At least 30C

orresponding SDGs