Safety and HealthManagement
Report 2023
OSG Corporation
Safety and Health Promotion Secretariat
Human Resources and General Affair Dept.

CONTENTS
Company Overview
Message from Top Management

ーーーー2

Safety and Health Management Principles
Fundamental Business Policy
Declaration of Safety and Health Management

ーーーー3

Safety and Health Management for Medium-Term
Management Plan (FY2022 to 2024)

ーーーー4

Safety and Health Management Support Structure
Safety and Health Management Promotion Systemーーーー5Company-wide Safety and Health Committee Structure
Safety and Health Promotion Secretariat
Deepening Safety and Health Policy

Safety and Health Promotion Education Systemーーーー6
Recognition and Participation
Safety and Health Initiatives for Our Supply Chain and Group Companies
Safety and Health Strategy Maps in Pursuit of Employees’ Well-Being

ーーーー7

Safety Activities: Activities to Protect Employees

ーーーー8

Health Activities: Activities to Energize Employeesーーーー13Social Activities: Activities to Contribute to Societyーーーー17

Safety and Health Promotion Secretariat Afterword 2023

ーーーー19

Databaseーーーー20

Editorial Policy
Ever since fiscal year 2021, OSG has published its “Safety and HealthManagement Report” dealing with the following five aspects
aimed at providing shareholders with detailed informationon our safety and health management.
(1) Management principles and policy(2) Organizational framework(3) Applying system and measures(4) Evaluations and improvements(5) Legal compliance and risk management

OSG has established and implements
a safety and health management
system based on the JapaneseIndustrial Safety and Health Law.

(1) Management
principles
and policy(2) Organizationalframework(3) Applying
systemand measures(4) Evaluations
andimprovements(5) Legal compliance and risk
management

1Company Overview(current as of November 30, 2022)

Name

OSG Corporation

Headquarters

3-22 Honnogahara, Toyokawa-City, Aichi, 442-8543, Japan
Telephone: +81-533-82-1111

Representative

Norio Ishikawa, Chairman and CEO
Nobuaki Osawa, President and COO

EstablishedMarch 26, 1938

Capital13,044 million yen

Sales amount

142,525 million yen (consolidated) / 56,956 million yen (non-consolidated)

Number of
employees

7,543 (consolidated) / 1,899 (non-consolidated)

Business profile

Manufacture and sales of cutting tools, rolling dies, gauges,
machine tools and machine parts; import and sales of tools

Websitehttps://www.osg.co.jp/en

Message from top management～ Taking on the challenge of creating a prosperous
future while living as one with the Earth and society ～Since its founding in 1938, OSG has been engaged in the manufacture and developmentof precision cutting and machining tools. Industrial and technological innovations are
essential for us to live a stable life in terms of both the economy and environment while
enjoying modern conveniences. On the other hand, a very important management issue inrecent years is how to make efforts to create a sustainable society that takes the global
environment into consideration, rather than just pursuing profit, efficiency and convenience inour daily lives.
In January 2022, here at OSG we announced a three-year medium-term management plancalled “Beyond the Limit 2024” that started from the fiscal year ending November 2022. The
theme “Beyond the Limit” expresses our determination to "go beyond the limit, set no limits,
break out of the shell, and break out of the norm.” In our long-term vision covering the period
through November 2030, we will work as an essential player to contribute to the global
manufacturing industry, and aim to build a solid corporate structure that can cope with allmanner of changes while looking ahead to the year 2030 when we will have to actually shift
to a carbon-neutral era. To achieve further growth even in this era of VUCA* that is full of
uncertainty, we will contribute to achieve a sustainable society in line with our corporate
philosophy “globally-oriented company."*VUCA stands for volatile, uncertain, complex, and ambiguous.

2

Safety and Health Management Principles
In 1996, here at OSG we declared ourselves a "globally-oriented company," "healthy company," and"eco-friendly company." Then, in 2014, we adopted the tagline "Shaping your dreams" as our brandidentity. We believe that we can attain a prosperous future by creating an environment where every
employee is cheerful, happy and energetic in their daily work, and also by contributing tosustainable development of the community, society and the Earth based on the philosophy that acompany is a public entity of society. As we approach our 100th anniversary, we will strive for thewell-being of people, society, and the Earth, and give shape to our dreams through human resource
development and manufacturing as a globally-oriented company that shines ever brighter.

OSG Fundamental Business Policy••••

By always being aware that a company is a public entity of society, we provide
products that truly satisfy customers.
We assign appropriate jobs to employees and help improve the quality of their life.
We strive to pay consistent dividends to shareholders.
We strive to develop ourselves into a global company through solid business
management while enhancing social trust.

OSG Declaration of Safety and Health Management
We will strive for the well-being of our employees and contribute to creating a prosperous future
for both them and their families as well as for customers, communities, society, and the Earth.
We believe that creating a workplace environment where all employees can play
an active role will absolutely lead to a wonderful future.
OSG continuously strives to be a company that can firmly support each and every employee.

Globally-Oriented Company“Communities
and society”
Creating anenriched
environment“Employees”
Creating aworkplaceenvironment
where every
employee can play
an active roleESG
E : Environment
S : Social
G : Governance

OSG Safety and Health Management
Raising safety
Employees’
awareness
attitude/behavioral Promoting mental
changesand physical health

Ease of working
Sensitivity to health

Job satisfaction
Fulfilling life

Well-being

Company's Initiatives
Safety -- Returning home from work as healthy as
when you arrived at work --Health -- Creating environments where employees canwork in good mental and physical health --Safetyexperiential
experience
training
Safetytraining

Inspections by board members

Health consultation desk

Combatting COVID-19

Experiencing
hazardous
Safety experientialtraining
situations raises one's
safety awarenessWorkplace environment
inspections by board
members

Staffed by occupational healthphysicians, counselors, andhealthcare personnel

Workplace vaccination forpeace of mind at work

Traffic safety patrol

New employee safety training

Offering healthy meals

Promoting communication

Education on traffic safety
for employees andcommunities

New employees learnsafety basics

Balanced healthy meals
offered at company
cafeterias

Employees and their families
take part in welfare andbenefit programs

3▶Safety and Health Management for Medium-Term Management Plan (FY2022 to 2024)
Applying a strategy from our medium-term management plan called “Beyond the Limit 2024,” wewill boost productivity to achieve our medium-term management targets by working to achieve
the well-being of each and every employee.
Management targets (period ending Nov. 2024):
ROA (operating income basis) 15%, Operating income 30 billion yen

・Key issues (materiality) selected in the medium-term management plan
Climate change initiatives
OSG has expressed support for
the TCFD and will strive to adapt
to the effects of climate change
on our business operations. OSG
will also promote businessactivities that contribute to acarbon-free society and initiatives
for cutting greenhouse gas
emissions.

Community sustainable
development (1)Sports promotion initiatives
As a top sponsor of the HigashiMikawa professional basketballteam “San-en NeoPhoenix,” wesupport local professional sports.
We have held various events andinvited guests to watch the games
free, which has helped toenergize the community.

Development of a rewarding
workplace environment

Initiatives for employing people
with disabilities

OSG will develop and maintain anenvironment in which each andevery employee can find prideand fulfillment, leverage diversity,and demonstrate the full potentialof their abilities.

We hold our own future vision for
creating a special subsidiarycompany, so we set up the“preparation team for special
subsidiary company” in June 2021.
We are now developing anenvironment that flexibly responds
to the aptitudes and conditions ofpeople with disabilities tolet all of us
work together.

Community sustainable
development (2)Support for healthcare
institutions and facilities

Improvement of corporate
governanceAs part of our support for
combating COVID-19, we
donated protective gear andmasks to healthcare workers andcooperated in administering
workplace vaccination programsin nearby communities. We also
contribute to creating acommunity with a heart throughactivities such as regularly
donating furniture and otherfurnishings to facilities that assist
people with disabilities.

Health & safety management
As a health-conscious company,
we understand that keeping our
employees safe and healthy is an
important management concern,so we promote employee healthand create a workplaceenvironment that is both
comfortable and safe.

Sustainable financeThe board of directors consists of amajority of independent outside
directors. This system of outside
experts is fully capable ofoverseeing the management to steer
the company in the right direction.
The system also provides diversity
and one woman was in factnominated as a candidate foroutside director at the general
meeting of shareholders held in
February. Part of our systems forenhancing corporate governance,
include sharing guidelines foractions to comply with corporate
ethics throughout the entire
group and raisingmutual awarenessof these ethics.

We have signed an agreement for
ESG Assessment Financing tomonitor KPI achievement status
and to disclose such information.
When raising funds for investment,
we consider adopting
sustainability-linked loans, green
bonds and other forms ofsustainable finance in order tostrive for more flexible andsophisticated ESG/SDG
management.

Source: OSG’s official website medium-term management plan “Beyond the Limit 2024” (FY2022 to FY2024)▶Safety and Health Management Support Structure
Along with the use of various data including workplace near-misses, accident situations, medical
examinations, and stress checkups, we collect a wide range of issues that change daily andpromote safety and health management initiatives.
Industrial physicians
Public health nurses
Industrial counselor
Registered dietitian nutritionist
Safety managers
Class-1 health officers
Safety and health promotion secretariat staff

2 (outsiders)3
1 (outsider)
1 (outsider)
12
14
6▶Safety and Health Management Promotion System
The Safety and Health Promotion Secretariat, the Safety and Health Management Committee at
each business site, the workplace, industrial physicians and other professional staff all work
together to promote safety and health activities based on the top management's policy on safety
and health management. We also cooperate with external organizations to evaluate and verify theeffectiveness of our activities.
CEO(President and representative director)<External organizations>・Japan Health Insurance
Association
・Medical Institutions
・Health Service Center

Sustainability Committee
Risk and ComplianceManagement Committee
Employees

Safety Management
Committee
Health Management
Committee

・Labor Standard Association
・Labor Standards Inspection Office
・Traffic Safety Association
・Police Station
・Fire Station

Safety and Health Promotion
Secretariat(Safety and health promotion team)(Public health staff)

・Higashi-Mikawa Safety and HealthResearch GroupAs of Sept. 2023

4▶Company-wide Safety and Health Committee Structure
Headquarters Safety and Health Committee (meetings held 4 times a year)
Safety and health management promotion, deliberating and reporting on company-wide matters,
reporting accidents that have occurred (by business site managers)

Health Management Committee(meetings held 4 times a year)

Safety Management Committee(meetings held monthly)

Health management promotion, medical checkups, lifestyledisease prevention, stress checkups, blood pressure
measurement, immunization

Safety management promotion, zero-accident meetings,
KYK activities, near-miss, risk assessment, accident
prevention, 5S activities

Business Site Safety and Health Committee(meetings held monthly)
Accident prevention, health management, health promotion
activities, planned activities

Zero-accident Meetings(for quick response when an accident
occurs)OSG Academy

Headquarters

Toyokawa Factory

Oike Factory

Toyohashi Factory

Shinshiro Factory

Yana Factory

Sharing accident information, checking forsimilar work scenarios, deliberating on
countermeasures, deploying lateralcountermeasures, prevention of reoccurrence▶Safety and Health Promotion Secretariat
Qualified safety and health professionals along with in-house public health nurses areworking closely with each business site, human resource department and management
team to ensure the safety and health of our employees.

Safety and health promotion team

Public health nurses

Qualifications held by secretariat staff: Safety manager, Class-1 hygiene manager, RST (Roudosho
Safety and health education Trainer), public health nurse, health management advisor, healthmanagement expert advisor, sports food advisor, nutritional education advisor▶Activities for Better Health and Safety
1938 Founding
1996 58th anniversary

Hideo Osawa established OSG Grinding Co., Ltd. in Tokyo.
Declared itself a "globally-oriented, healthy, and eco-friendly company."
Prohibited smoking in all workplaces during working hours.

2001
2002

Started safety risk assessment activities.
Started safety and hygiene education for all employees.

2007

Started “Zero-accident meetings” for a quick response when an accident occurs.
Started safety experience training.
COVID-19 pandemic spread worldwide. Started COVID-19 workplace vaccination.
Declared “OSG Safety and Health Management.”
Aichi Labour Bureau of the Ministry of Health, Labour and Welfare started
the “Let’s face the danger” activity.
Published “OSG Safety and Health Management Report 2022.”

2016
2020
2021
2022

2023 85th anniversary

Recognized by the Ministry of Health, Labour and Welfare of Japan as an
excellent company for safety and health.
Recognized by the Ministry of Economy, Trade and Industry of Japan as an
excellent company for health management.
End of COVID-19 at the OSG group is declared.

5▶Safety and Health Promotion Education System▶Recognition and Participation
Health and productivity management company
recognized by METI *This recognition program honors corporations including
large and small-and-medium-sized businesses thatpractice particularly outstanding health management
based on initiatives that are aligned with local healthissues and health promotion initiatives led by the Nippon
Kenko Kaigi. Among the companies selected by thisprogram, “White 500” is a certification given to the top
500 large-scale companies.

Excellent safety and health company
This signifies a company that has beenrecognized by the Ministry of Health,Labour and Welfare of Japan as having
actively taken measures to ensure thesafety and health of its employees andas having maintained and improved highstandards of safety and health.

Management team andlabor union receiving theofficial recognition report

Smart life project led by the
Ministry of Health, Labour andWelfare and Sports Agency
This project aims for "Healthy Nation
Nippon" via the four pillars of diet, exercise,health checkup, and non-smoking.

SAFE Consortium led by the Ministry of
Health, Labour and Welfare
The SAFE consortium promotes safety action
strategies for the well-being of employees.

Director of Labour
Bureau bestows thecertificate
Human Capital Management
Consortium led by METI *This consortium shares advanced
cases of human capital management
practices, discusses them with a view
to business-to-business cooperation,
and also collects, publishes anddisseminates the necessary* METI: Ministry of Economy, Trade andIndustry of Japan▶Safety and health initiatives for our supply chain and group companies
We conduct hearings on CSR with ourbusiness partners to educate them on
how to comply with laws and regulations
and to promote occupational safety andhealth. We also support all groupcompanies by training them andexchanging opinions on safety and health.
Safety education for supply chains

Safety education for group companies

6Safety education for supply chains

Safety education for group companies▶Safety and Health Strategy Maps in Pursuit of Employee Well-Being<Safety Strategy Map>

<Health Strategy Map>

7

Safety Activities

Activities to protect our employees▶Occupational Accidents
Number of occupational accidents in OSG■ Non-lost-time accidents■ Lost-time accidents
2001: Started risk assessment activities
2002: Started education by outside instructors for all employees

2007: Started “Zero accident meetings” for a quick
response when an accident occurs
2016: Started safety experience training▶Declaration of Risk Assessment Promotion Workplace for Aichi Labour Bureau
To enhance occupational safety and health management levels, this declaration is made forworkplaces where possible hazards are comprehensively evaluated and voluntarily improved
through risk assessments overseen by the Aichi Labour Bureau. We also declared the intent of
the representatives to promote independent safety and health management at each of ourfactories.

Declaration by Yana Factory

Declaration by Shinshiro Factory

Declaration by Toyohashi Factory

Declaration by Oike Factory

Declaration by Toyokawa Factory

Declaration by OSG Academy

8▶Registered as supporting workplaces for “Safe Management in Aichi”
advocated by Aichi Labour Bureau
We agreed to help promote and widely spread the “Safe Management in Aichi®” program
advocated by the Aichi Labour Bureau, with the aim of demonstrating the initiatives of “safemanagement” and proactive approach to risk assessment that become the basis for safe
management. Each of our business sites wasrecognized and registered as a supporting workplace
and therefore received the registration certificate.

Granted certificate from the Toyohashi
Labour Standards Inspection Office

Certificate of registration
for Yana Factory

Certificate of registrationfor Shinshiro Factory

Certificate of registration
for Toyohashi Factory

Certificate of registration
for Oike Factory

Certificate of registration
for Toyokawa Factory

Certificate of registrationfor Headquarters

Risk assessment table (extracted Excel sheet)
Certificate of registration
for OSG Academy

9for OSG Academy▶Mandatory Arm Coverings
Since 2019 we have made it mandatory for employees to wear arm coverings for their own
safety. As a result, the average number of cut and laceration injuries was reduced to a total of
2 in 2019 onward, compared to an average of 5 from 2000 to 2019.
Accidents involving cut and laceration injuries
Arm coverings were mademandatory in 2019

Wearing arm coverings

Number of accidents resulting in cut and laceration injuries by year

▶Measures to Prevent Falls and Trips
As the average age of workers increases and they have been with the company longer, they
may not be aware of their own physical deterioration, so the actual number of accidents
resulting from falls does not reach zero. We provide fall prevention education and hardware
countermeasures.
Fall and trip accidents

Barrier-free for preventing tripping and falling(Yana Factory)

Number of fall and trip accidents by year
転倒災害経年グラフ▶Safety Education
・Education for managers and supervisors
We conduct safety education for managers and supervisors. For example, we invited Mr. Tsutomu
Hamada as the seminar lecturer, who heads the safety section of the Labour Standards Dept., Aichi
Labour Bureau, and listened to his talk on “Risk assessment for promoting occupational safety andhealth” in our lecture room.
Forklift truck training

Safety education seminar

10・Safety Education for All Employees
We started safety experience training for all
employees with the aim of challenging them toexperience hazardous work and improve theirown safety awareness. This compensates forthe decline in the ability to predict hazards due
to automation and the lack of experienceamong increasing younger workers.

Safety experience training

・Special In-House Training
We conduct five trainings for handling forklifts,
grinding wheels, oxygen deficiency, dust
particles, and industrial robots as special inhouse training.

Forklift truck training

・Traffic Safety Education
Number of traffic accidents over 10 years up to May 2023 (Fiscal year 2023)
Number of accidents by year(including no-fault accidents)■Sales ■Production

Number of accidents by time of day(including no-fault accidents)■At work ■Leaving work ■Going to work

We periodically invite lecturers from the police office to give us traffic safety lectures.
We aim for zero traffic accidents throughout the company by providing traffic video educationand traffic safety training for sales offices. To also comply with the revised Road Traffic Law
Enforcement Regulations that went into effect on April 1, 2022, we are requiring our drivers toregularly measure their alcohol levels using an alcohol checker and to maintain those records.

July: Safety Emphasis Month
July is "Safety Emphasis Month" as a monthly event of
the Headquarters Safety and Health Committee.
During this month, the emphasis is being placed onsafe work practices to avoid possible accidents.
・We ask the sales staff to please focus on preventing
traffic accidents and to provide guidance and inspections.
・Please also check the summary of the most recent
traffic accident trends.
Traffic safety lecture

Headquarters Safety Secretariat
Traffic safety education material for sales offices

11▶Earthquake Disaster BCP (Business Continuity Plan)
To ensure the safety of employees and the continuity of the company in the event of a disaster, we haveformulated our Business Continuity Plan (BCP) for earthquake disasters and we conduct training under
the direction of our top management.

Earthquake model
Among earthquakes and tsunamis that have repeatedly occurred in the Nankai trough, the contours forfive especially large earthquakes (called Hoei, Ansei Tokai, Ansei Nankai, Showa Tonankai, and Showa
Nankai) were superimposed on each other and utilized as a model of the largest past earthquakes.

BCP document (portion of document)

BCP education and training▶Company-wide Disaster Prevention Drills
We conduct disaster prevention drills so that wewill be able to act on our own in the case of
emergencies. To protect our lives, we are creatinga system that can quickly set up a disasterprevention organization to provide initial response
and support to employees who have difficulty
returning to their homes.

Disaster prevention drill▶Emergency Supply Storehouse
Emergency supply storehouses are
installed at each business site.
We regularly check these emergency
supplies so that we can respond
immediately in the event of an emergency.

Emergency supply storehouse12

Health Activities

Activities to Energize Employees▶“OSG Health Mission 25” Initiatives
After reviewing routine health checkup data, we found there were extremely high figures for metabolic
syndrome rate and smoking rate even from a young age. Therefore, working under the title of "HealthMission 25," we have formulated and implemented health measures at each business site with the goalof reducing both of these rates to 25% in the regular health checkups in FY2023.

・Health measures at each business site

Yana Factory
After conducting a questionnaire
about smoking, we found somepeople responded that they would
like to quit smoking if given the
chance, so we decided to shut off thecigarette vending machine. We also
held a walking event around theoutside of the factory site. This
helped the participants to increase
their health awareness while enjoying
the seasonal scenery and change ofpace.

Scenery around
Yana Factory

A notice stating the cigarette
vending machine has been shut off

Shinshiro Factory
At Shinshiro Factory we conducted health education classes andheld three lectures at different times so that all employees in thefactory could have a chance to hear the lecture. We explained
the metabolic syndrome and smoking situations throughout theentire company and within the factory, and in order to encourage
individual employees to change their behavior, we emphasized
self-management using health meters and through daily walking.
Health education

Toyohashi Factory
Motivated by the theme of "cheerful andenjoyable health promotion," we held a walking
event from Toyohashi Factory to the top of anearby mountain. While encouraging andhelping each other, we walked toward themountain peak. The feeling of accomplishment
and exhilaration at the top of the mountaintotally refreshed us. We will continue to plan
walking and hiking events on a regular basis sothat all of us can enjoy promoting health
together.

Walking event

Oike Factory
We conducted a "Questionnaire on Smoking andPassive Smoking" for all employees and promoted
a "No Smoking Day" by way of a story titled the “No
Smoking Challenge!!” We also set up a "2023 Oike
Kenko Yosegaki" bulletin board in the cafeteria for
employees to write what they have resolved to do
for themselves, such as meet their health-related
goals for the year or make a commitment to get
regular health checkups.

13

Toyokawa Factory
Our employers are promoting health and wellness usinga smartphone application called "Aichi Health Plus:
Corporate version" that allows us to record the numberof our daily walking steps, weight and blood pressure aswell as to set various health goals. Using this app also
helps to easily find people with the same goals and toobtain information useful for further self-improvement ofhealth and wellness.

Aichi Health
Plus app

OSG Academy
Since our goals to reduce metabolic syndrome and smoking
rates below 25% have already been reached, here at the
OSG Academy we took another approach with the tagline:"Let’s all share the health tips we are working on and gethealthy together!”This approach has two purposes: You learn that tellingothers what you are doing lets them know you are reallyserious about it; and you and others also learn how others
are taking care of their health since these are announced atmonthly morning assemblies. In this way, we aim to help our
employees maintain their motivation to raise their own healthawareness.

Morning assembly

Headquarters
We aim to raise health awareness byproviding monthly health information suchas dietary nutritional balance, effective
stretching, and introducing apps for healthmanagement. We also encourage our
employees to set their own health goals
and continuously practice them by making
use of the Toyokawa Health Mileage
program sponsored by the Toyokawa City
Health Center.

Info distribution schedule
Spreading health information to others

・Results
The results showed a good downward trend throughout the company.
This indicated good results for the first year of the initiative, and the measures taken by eachhealth manager and others led to improved health awareness among employees. We willcontinue our Health Mission 25 activities throughout the company, aiming to reduce themetabolic syndrome and smoking rates below 25%.
[Health Mission 25] Changes in 2022 to 2023 at each business site
Metabolic syndrome rate(including pre-metabolic
syndrome)

Smoking rate14

▶Health Education for All Employees
We conduct health education for all employees every year to help them learn about health andhygiene based on educational materials provided by public health nurses.

▶Seminar on Women's Health
We held a new "seminar on women's
health" presented by occupational healthnurses as part of our training program for
managers. Participants learned about
symptoms specific to women, how to deal
with them, and how to balance both workand family life.

▶Support for Balancing Medical Treatment and Work
We have established a company policy regarding
support for helping employees to balance medical
treatment and work.
· Put employees’ feelings first· No need to notify the company of the name of the illness· Be flexible and do not blindly stick to the company rules

Health counseling

Seminar on women's health▶"GLTD Insurance System" for Supporting Absence from Work
We have started "GLTD Insurance System" as a welfare system that provides a secure working
environment. Even if an employee becomes unable to work, this system will compensate them fora portion of income loss. We are trying to alleviate employees' anxiety about this issue as much as
possible.

▶Check for Locomotive Syndrome
Can you stand on one leg from a 40 cm tall stool ?
Locomo (locomotive syndrome) is a condition in which physicalabilities also called mobility functions such as standing andwalking have deteriorated. To help our employees get into thehabit of moderate exercising and expanding a healthy lifestyle,we set up stools for them to check their locomotive condition
during their periodic medical checkups.

Standing on a stool▶Health Awareness at Sales Offices
We also have initiatives to help boost health awareness at our sales offices.
・Nagoya Sales Office
Simple stretching illustrations areposted on the walls of the water
boiler space. Here, anyone canalso do an eye test in their freetime, and on the floor mat, walking
strides considered good for healthare marked to raise healthawareness naturally.
Water boiler space

Stride marks on the mat and eye test
chart on the wall・Anjo Sales Office
Balance balls and reclining
chairs are available in thelounge. The wallpaper in thelounge shows a beautiful
waterfall landscape to further
relax employees.

Relaxing chairs

Relaxing lounge room

15

Relaxing chairs

Relaxing lounge room

▶Food is the basis of all health
Delicious Foods

Healthy Meals

Warm foods are served warm. Cold foods
are served cold. We also offer live cooking
right in front of your very own eyes at eachof our business sites.

Menu with lots ofvegetables

Menu list

Calorie indicator
Live cooking
Example of meal and soup

Communication begins

Displaying the calories ofseasonings raises everyone’s
awareness of health.

Feeling of Excitement"Enjoying a meal will naturally lead to smiles andcommunication." Keeping this concept in mind,
the company cafeterias are a cozy space alsoavailable for meetings and office space outsideof regular meal times.

Menu flyer for special events

Zero-one cafeteria (Shinshiro Factory)

The cafeteria staffs also enjoy helping to plan
the menu. Occasionally, we offer meals fromfamous restaurants and event menus to help
bring smiles to the faces of our employees.

▶Company Cafeteria Awards
We received the “SDG Company Cafeteria Awards” inrecognition of our efforts toward food sustainability.
The “SDG Company Cafeteria Awards” honor efforts
made in SDG initiatives through the menu, service,
events and other items at company cafeterias. Award
recipients are selected from among company
cafeterias that meet certain criteria such as
implementing SDG initiatives a least 5 times in one
year. We were recognized for our activities using"blue seafoods" in consideration of marine
environment, reducing food loss, and provide healthy
meals with more vegetables and less salt for thehealth of employees to make everyone happy andbring smiles to our company cafeteria.

Certificate of merit at the
SDG Company CafeteriaAwards

Low-salt meal menu

▶Promoting Communication Among Employees and Their Families
The impact of the COVID-19 pandemic that began in 2020 has abated, and we are gradually
returning to a pre-pandemic routine with more events that can be freely held without restrictions.

Watching a professional basketball game

Families participating in a factory tour

16

Social Activities

Activities to contribute to society▶EV (Electric Vehicle)
We replaced six company vehicles with EVs and installed EV charging stations at our fourbusiness sites. We aim for carbon-neutral products and production systems through energy andresource conservation measures.

Company's EVs

EV charging station▶OSG Dream Tennis Court
As part of our contribution to the local community, we acquired the naming rights to the Toyokawa City
tennis court and opened it as the "OSG Dream Tennis Court.” This tennis court is used by a wide
range of people and age groups. For example, a former professional tennis player Ai Sugiyama
attended as a guest at an event organized here.

OSG Dream Tennis Court

OSG Tennis Club members with
Ai Sugiyama▶Higashi-Mikawa Safety Information Exchange Meeting
The Safety Secretariat along with labor and management staff participated in the Higashi-Mikawa
Safety Information Exchange Meeting hosted by JAM Tokai. Safety and security are constantthemes shared by labor and management. By exchanging opinions with other companies andinteracting with them, we had the opportunity to gather information and find out what issues we needto address in the future.

Group photo taken after exchange meeting▶Supporting the Toyokawa Health Mileage
Program Hosted by Toyokawa City
We support the “Toyokawa Health Mileage”
program hosted by Toyokawa City. This program
allows participants to set health-related goals, earnpoints, and apply for prizes. Our main office inToyokawa City will also participate in this program.

Brochure for Toyokawa
Health Mileage program

Exchange meeting▶Supporting Sports Events
We actively support local health sports events
where many of our employees participate.

Mobile battery andthermos tumbler forsponsored prizes

Toyokawa City marathon poster(Source: Sports Division, Board of
Education, Toyokawa City)17

▶Exchanges with Excellent HealthManagement Companies▶Published on Tokai Nichinichi Newspaper
In 2023, we were recognized as
an excellent health managementcompany “White 500” and wereinterviewed by Tokai Nichinichi
Shinbun.

We visited excellent health managementcompanies to learn about their health management
policies. By sharing information and comparing
results with other companies, we find new issues inachieving healthcare on a daily basis.

Published article (copyrightby Nichinichi Shinbun)

Exchanging information with other companies▶Blood Donation Program

Being interviewed
by the media▶Basic Lifesaving Training Program

A blood donation bus from the Japanese Red
Cross Society comes to our company twice ayear, and many of our employees cooperate ingiving the donations.

Four times a year, we invite lecturers from thelocal fire department and our employees whowish to get training can learn about basic
lifesaving. Many employees want to retake thistraining course, and we support them in theirstraightforward attitude toward life.

Blood donation
Lifesaving training▶Traffic Safety Patrol▶Fire Brigade Activities

We conduct traffic safety activities once a month.
This helps ensure the safety of the local
community and to reduce road accidents.

Our employees are also involved in fire brigade
activities to further protect the safety andsecurity of the local community.

Traffic safety patrol

Fire brigade activities▶5S Activities
All employees are always aware of the
5S (Sort, Set in order, Shine,Standardize and Sustain) policy. We
conduct 5S activities regularly aroundthe company, within the company andthe work space around us to keep
things clean and neat.
Cleaning up the area aroundthe main office18

Safety and Health Promotion Secretariat - Afterword 2023
Shuichiro Okamura
Chief of Safety and Health Promotion Secretariat(At the site of COVID-19 workplace vaccination)～ Big things and small things ～At OSG we care not only about safety and health, but also about the Earth, society, andcommunity. One of these initiatives includes a challenge to achieve a sustainable earth andsociety. We partnered with a local “farm-based solar power plant” in Toyokawa City as one
step forward this goal.
* Farm-based solar power plant: Solar power plant where agricultural production is performed
under the solar panels.

We have production sites in various countries around the world. In the Higashi-Mikawa regionof Aichi Prefecture, Japan, where our headquarters is located, nearly 2,000 employees work,and tool manufacturing factories are in operation there that consume huge amounts ofelectrical power. So the electrical power they consume cannot be covered just by solar power
generation and energy-saving efforts in the factory sites. We therefore collaborated with acompany that supplies electricity by transforming abandoned farmlands in the region into farmbased solar power plants. We were in this way able to acquire a power plant that is dedicatedfor the OSG group and started supplying electrical power to our factories in February 2023.
This is a very rare case of “local production of electricity for local consumption” and was thefirst initiative of its kind in the Chubu area (central area) of Japan.
We also intend to use agricultural crops such as chives and corn grown at this dedicatedpower plant for our factory cafeterias to ensure stable delivery and consumption without having
to dispose of crops that are not suitable for sale. In the near future, we will use the special
subsidiary company OSG Active, which we established in December 2022 for agricultural workat the power generation sites, to create jobs for persons with disabilities while also
compensating for the shortage of agricultural workers in the nearby region.
* Special subsidiary company: Subsidiary company that gives special consideration to the employmentof persons with disabilities in order to promote and stabilize the employment of those persons.

Our current plan is projected to reduce CO2 emissions by 2,000 tons per year and we intend toacquire another dedicated power plant in 2024 that can further reduce CO2 emissions by morethan 2,000 tons per year. Besides using the crops grown there for our company cafeterias, wehope to sell them for school lunches and roadside stations and rest areas. We also want tocommunicate our efforts to schools and to as many people as possible in order to help expand
the circle of environmental awareness.
* CO2 4,000 tons: This is equivalent to the amount of CO2 absorbed by about 300,000 cedar trees in
one year, which would be a forest area of 76 Tokyo Domes (baseball game stadium).

OSG solar power plant where corn
sprouts are growing

OSG Active employees with a smile19

I also think it wonderful that there is an environment in which employees can take on thechallenges of various initiatives whether big or small. These include, for example, installinggreen curtains at our factories, giving aid to facilities for the disabled, and supporting local
strawberry farmers during the off-season. Each employee takes the initiative in thinking about
these ideas, and when those around them agree with their ideas, they turn them into reality.
I think such a cycle leads to improved well-being for everyone.

Green curtains at Toyohashi Factory

Harvested bitter melons go to company cafeterias

Bread from a facility for the disabled
Sold out again today!

Frozen strawberry shaved ice from a local
strawberry farmer

20

DatabaseOrganization
Number of employees
Average age of employees
Average years of service
Job turnover rate

2019
2,233
42.1
18.6
2.3%

2020
2,121
42.3
18.6
2.4%

2021
2,204
42.5
18.8
1.8%

2022
2,219
43.1
19.3
3.0%

Working
Total actual working hours (monthly average)
Overtime working hours (monthly average)
Rate of employees working overtime inexcess of 45 hours a month

2019
171.8
24.6

2020
161.7
13.1

2021
160.6
15.5

2022
162.0
18.9

23.3%

1.7%

10.8%

9.7%

Rate of paid leave taken (annually)

60.9%

53.2%

58.8%

65.0%

Number of days of paid leave taken(annual average)

10.8

10.3

11.7

11.9

Health checkup
Periodic medical checkup rate

2019
99.8%

2020
99.8%

2021
99.8%

2022
100%

6.8%

6.2%

31.0%

29.7%

50.7%
62.4%

49.3%
100%

49.0%
100%

49.7%
100%

Rate of employees undergoing detailed
examination (or re-examination)
Rate of findings
Rate of specific health guidance operation
Lifestyle

2019

2020

2021

2022

Rate of employees having gained more than
10 kg in weight since age 20

33.3%

33.7%

32.4%

32.2%

Rate of employees skipping breakfast atleast 3 times a week

15.6%

15.8%

16.1%

16.6%

Rate of employees having dinner within 2 hours
before bedtime at least 3 times a week

21.3%

17.2%

17.7%

17.8%

Rate of employees having snacks and sweet drinks
in addition to breakfast, lunch, and dinner

17.6%

16.3%

17.1%

17.7%

18.9%

22.2%

24.3%

24.1%

26.1%

29.5%

31.2%

31.4%

43.8%

52.3%

48.5%

50.0%

29.9%

33.7%

36.0%

36.7%

Health literacy of employees

ー

ー

ー

3.25

Metabolic syndrome rate (including premetabolic syndrome)

31.3%

27.8%

27.9%

27.7%

Rate of employees receiving treatment forblood pressure

10.0%

10.3%

11.0%

11.9%

Rate of employees receiving treatment forblood glucose

3.5%

3.9%

3.9%

4.1%

Rate of employees receiving treatment for
lipids

7.1%

7.3%

7.5%

7.9%

Number of employees receiving treatment forhigh blood pressure

172

179

193

213

Rate of employees taking sick leave(annually)

0.28%

0.06%

0.43%

0.33%

Rate of employees with appropriate weight(over 40 years old)

68.1%

66.8%

65.4%

66.5%

Smoking rate (over 40 years old)

33.4%

32.8%

32.8%

31.0%

Rate of employees with exercise habits(over 40 years old)

18.2%

23.0%

23.4%

23.3%

Rate of employees with good sleep quality(over 40 years old)

41.0%

50.0%

44.5%

45.4%

Rate of employees with drinking habits(over 40 years old)

12.5%

12.6%

12.2%

10.3%

Rate of employees exercising for 30 minutes
or more at least twice a week
Rate of employees taking a walk or doing
similar exercise for at least 1 hour a day
Rate of employees getting enough rest
through sleep
Rate of employees currently improving
lifestyle21

Rate of employees with blood pressure risk(over 40 years old)

0.7%

0.7%

0.7%

1.2%

Rate of employees with blood glucose risk(over 40 years old)

0.8%

0.4%

0.0%

0.4%

Rate of employees not controlling diabetes
well (over 40 years old)

1.4%

1.3%

0.8%

1.2%

Occupational accident

2019

2020

2021

2022

Frequency rate

0.267%

0.298%

0.000%

0.554%

Incident rate per 1000 employees

0.524%

0.538%

0.000%

1.063%

Severity rate

0.00053%

0.00358%

0.00000%

0.01635%

Working hours lost due to occupational
accidents

80

48

48

88

Occupational
accident rate

Safety

2019

2020

2021

2022

Number of participants in safety experience
training

ー

ー

80

200

Number of participates in safety education for
managers and supervisors

226

ー

68

70

Number of participants in in-house special
training

216

111

88

307

Health

2019

2020

2021

2022

ー
ー

ー
ー

ー
ー

96.7%

Degree of satisfaction with participation in
health measures

ー

ー

ー

97.7%

Participation rate in seminar on women's
health

ー

ー

ー

82.3%

Company retreat trip participation rate

72.0%

Canceled

Canceled

Canceled

Health education participation rate
Health measures participation rate

ー

ー

ー

1,725

1,436

1,290

Subsidies for company retreat trip 14,920,000 yen
Number of vaccinated persons
Mental health
Rate of employees undergoing stresscheckupRate of employees under high stress
Average score of quantitative workload
Average score of job control
Average score of supervisor support
Average score of co-worker support
Performance Indicators

Number of
employees
measured
Response
rate

1,685
2019

ー

2020

2021

2022

77.2%

96.7%

94.6%

81.9%

13.2%
8.5
8.49
7.9
8.08

11.6%
8.19
8.41
7.92
8.1

13.4%
8.3
8.5
8
8.1

11.6%
8.5
8.5
8.2
8.1

2020

2021

2022

2023

Presenteeism

ー

ー

86.3

80.9

Absenteeism

2.97

1.20

1.45

(Not counted)

Vigor
Dedication
Engagement
Absorption
Average
Presenteeism
Absenteeism
Engagement
Presenteeism
Absenteeism
Engagement

ー
ー
ー
ー
ー
ー

ー
ー
ー
ー
ー
ー

ー
ー
ー
ー

ー
ー
ー
ー

3.08
3.58
3.1
3.25
573
2219
573
25.8%
100%
25.8%

3.01
3.5
3.13
3.21
454
2186
454
20.8%
100%
20.8%

<Measurement method>
Presenteeism: SPQ, Absenteeism: Average number of days of absence and leave, Engagement: UWES scale22