The Driving Force/Booster of Value Creation — Sustainability Human Capital

Human Resources Strategy
We motivate our employees andenhance their abilities, which inturn drives the improvement of ourcorporate value.
Tetsuya Ohashi Director and Senior Executive Officer
human resource strategy, including securing and training
human resources that can create added value.
We will realize human capital management by creating anenvironment in which our employees are rewarded for theirwork, maintain their physical and mental health, and work
efficiently.

We view human resources as "capital" and believe that
increasing the value of individuals by investing in people willlead to medium- and long-term improvements in corporate
value.
Based on this approach, we are deploying initiatives thatare conscious of the link between management strategy and

Improvement of corporate value
Personal growth

Motivated human resources
Human resources with diverse ideas
Human resources that can play
an active role in the world
Fostering motivation and a sense of fulﬁllment
Presence of specialists in each ﬁeld
Accumulation of micro innovations

Human resource system/training system
Devices and mechanisms to motivate

Supporting "personal" growth by fostering autonomy and self-reliance
Providing opportunities and support to experience challenges
Action plan to improve engagement

Work-life
management

Respect for
humanrightsHuman
Resources
Strategy(1) Have a ﬁrm pricing policy(2) Become leading plants in decarbonization(3) Versatile - Diversiﬁcation of risk through diverseand multifaceted businesses

Diversity
andinclusion

The Taiheiyo Cement Group has been continuously involvedin cement production for 140 years. During that time, we haveworked to achieve quality and cost competitiveness of our
products and services at all sites, from limestone mining tocement production and transportation.
Originally, cement was made purely from naturally occurring
materials such as limestone, clay, and silica stone, but in recent
years waste and by-products have been used as alternative
raw materials. Continuous operation and planned repairs at
the plant are the source of our cost competitiveness; however,many of the alternative raw materials can have a negative
impact on the cement manufacturing process, so making fulluse of them requires a certain amount of ingenuity.
For example, utilising sewage sludge as a raw material in
the cement production process can be unpleasant for operatives
on site. Similarly, in response to the recent surge in coal prices,plants are striving to make full use of lower-quality coal, so theaccumulation of "micro innovations" to overcome challenges
such as unpleasant or difficult to handle materials becomes a
specific skill. Therefore, the "motivation" of plant employees is
directly related to corporate value.

Human resources required for further growth

Sources of competition

Human
resource
development

Human resources strategy andmicro-innovation

Health andProductivity
Management(H&PM)Engagement(4) Focus on human capital- Highly diverse human capital- Securing human resources- Creation of a pleasant work environment

Expansion of our business in overseas markets is essential
for the further growth of the Taiheiyo Cement Group. To thisend, it is necessary to continuously develop human resources,
both technical and clerical, who can play an active role overseas.
There are programs such as overseas traineeships and overseas
language study programs, but nothing beats practical work
experience.
We are currently building a state-of-the-art cement plant in
the Philippines, and participating in this project is an extremely
good learning experience. It is a valuable opportunity because
we are building a plant from scratch and starting it up together
with local employees. Many of our employees, especially youngand "motivated" employees, are playing an active role on
location.
However, overseas projects do not always progress smoothly
and unforeseen things can happen frequently, so working on
location is usually a battle against schedules. Experiencing suchdifficulties is a way for an individual's ability to grow by leaps
and bounds. All of them will come back stronger and moremature.

Approach to human capital
The term "human capital" is now used frequently. We
believe "capital" includes the nuance that when an individual
grows, the overall "capital" of the firm will increase as a result.
Growth is the accumulation of what you were not able to doyesterday that you are able to do today. The driving force behind
growth is motivation. The Human Resources Department
is the place where mechanisms and systems are created tosustainably generate "motivation".

Towards improvement of corporate value
Starting this year, we have decided to conduct anengagement survey of all employees to gauge their willingness
to serve in the organization. Based on the survey results, eachdepartment will develop and implement an action plan to
improve engagement, and the PDCA cycle will be implemented.
In addition to regular job rotations, an in-house sideline system
is being implemented on a trial basis with the aim of gaining
experience in other departments. For example, a person froma research center can telework 20% of his/her time per week
to work in overseas sales, or a person from the general affairs
section of a plant can work in the human resources department
at Headquarters. If they are a good match, it is possible forthem to transfer directly.
We believe that individual growth based on "motivation"leads to increased corporate value.

Top Commitment

78

79

The Driving Force/Booster of Value Creation — Sustainability Human Capital

Human resource development

Promotion of diversity and inclusion

In addition to company-wide measures such as training for each job level of employees, we provide individual
learning opportunities that foster autonomy and self-reliance, thereby creating a corporate culture that motivates
employees to grow and proactively find the pillars of their careers.

The promotion of diversity and inclusion is one of the key issues for the creation of an innovative workforce, and weare making it a priority.

Basic approach

Basic approach

We have established the following six items as our "Human Resource Development Policy" for systematic and comprehensive
human resource development so that all of our human resources can demonstrate the full extent of their individual capabilities.

We are actively working with the aim of becoming a company where people with diverse values can play an active role.

Promoting Women’s Participation and Advancement in the Workplace

Human Resource Development Policy
1 Supporting "personal" growth by fostering autonomy and self-reliance among our diverse human resources.
2 Developing human resources through on the job training supplemented by off-the-job training.

3 Developing human resources to inherit the roles of their predecessors, playing central roles in the future in each field and at each level.
4 Developing human resources to take action in constant consideration of group management.
5 Developing human resources to global standards of competence.

Fundamental Policies

6 Developing human resources to protect the environment and to serve society through the promotion of sustainability.

Education System
In order to realize our Human Resource Development Policy,
we provide training across the entire company. Regarding onthe-job training, which is the foundation of human resource
development, we have clearly indicated skill maps for eacharea of work in which employees are engaged and utilize

Education System ChartOnthe-job
Training

them in on-the-job training in the workplace. For off-the-job
training, which complements on-the-job training, we provide
various training programs and support for the development of
individual skills.

Non-consolidated

Implemented Across the Entire Company
Off-the-job Training

Companywide Common
Training

Education Level

LeaderDevelopment

Management

External public
seminars

SafetyDepartmentSpecificTraining

With the aim of further enhancing corporate value by promoting innovation through the ideas and values of diverse humanresources, we will:• Promote active recruitment and retention of women in order to build an appropriate human resources portfolio;• Promote work-life management to improve productivity and build an organization that maximizes the capabilities of our diverse
workforce.

Program to train the next generation of female leaders
In Japan, the career development of working womenis prone to various uncertainties due to the influence oflife events and the absence of role models. To counter
this, we provide training aimed at developing the next
generation of female leaders.

Number of participants in FY2023: 29

Improving skillsin the image of a leader

Solid image ofcareer advancement

CareerdesignSTEP 1 (Introduction)

STEP 2 (Development)

Learn how to think about their career,solidify a career plan, and be awareof the next step in careeradvancement

Awareness of leadershipas an option in careerplanning

STEP 3 (Practical)
Gaining their own
speciﬁc image of aleaderIn order to respect the sense of spontaneous
learning, participation up to STEP 2 is voluntary.

Expanding recruitment of experienced persons

Selfdevelopment
supportDepartment-specific education

Techno Schools

Sessions for newly
hired employees

Program totrain the next
generation of
female leaders(introductory/
development
courses)

Individual Ability
Development

E-learning support
Foreign language learning for business
Qualification acquisition support
Support for correspondence education

Follow-up
courses

Overseas language study

Mental health

Global humanresource
development
program
Overseas internship

Legal

Program totrain the next
generation of
female leaders(practical course)

Overseas trainee

Careerdevelopment
coursesIntellectual property
Skills map

General Staff

Diversity and inclusion

Management Academy (Domestic Production Division)
Financial Leadership Program (Hitotsubashi University)
Global Human Resource Development
Program(Keidanren)
Dispatch to Women's Challenge Support Course(Keidanren), etc.

Managerial
training

Sustainability

Management training

Human rights

GlobalSelective external dispatch training

Training for new
deputy directors
Training forManagement overview newly appointed
managers
Information security

Diversity andinclusionin May 2015 and have been published both internally andexternally. The ratio of female employees was 9.6% at the endof March 2023 and we are continuing our efforts to achieve ourtarget of 10% or more.

We have established a basic policy regarding women's
participation and advancement in workplace and are
implementing initiatives. The current quantitative targets aredefined in our CSR Objectives for 2025 that were establishedWith regard to employee recruitment, we are actively
recruiting not only new graduates but also experienced persons.
Hiring people with diverse careers not only ensures immediate
workforce strength, but also revitalizes the organization withnew values. We have hired about 10 experienced workers ineach of the last five fiscal years, leading to diversity in our core
workforce.
In addition, "employee referral hiring" and "alumni hiring"were newly introduced to increase employment diversity.

Promoting Employment Opportunities for Persons with Disabilities
We have been working to improve the ratio of employeeswith disabilities, including the establishment of three special
purpose subsidiaries, and exceeded the statutory rate of
employment for 16 consecutive years since FY2009.
We will continue to proactively work to increase the numberof employees with disabilities while collaborating with schools
and support organizations for persons with disabilities.

Trends in the ratio of employees with disabilities
Non-consolidated(as of June 1 of each year)

(%)
3.0
2.5

2.30

2.50

2.55

2.58

2.84

2.0
1.5

Taiheiyo Cement
Statutory employment ratio (%)*

1.0
0.5
0

2020

2021

2022

2023

2024

(FY)

* Statutory employment rates: 2.2% from April1, 2018; 2.3% from March 1, 2021

80

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The Driving Force/Booster of Value Creation — Sustainability Human Capital

Promotion of work-life management

Health and Productivity Management (H&PM) initiatives

Employee wellbeing is contributes to our sustainable growth. We are working to create a workplace where each andevery employee can enjoy job satisfaction.

As part of our efforts to improve labor productivity, we promote various measures to maintain the physical andmental health of our employees.

Basic approach

Basic approach

We have introduced various systems to realize flexible work styles and promote work-life management for our employees.

Various Employment Systems• Flextime system (Core time: 11:30 a.m. to 1:30 p.m. (headquarters,
branches, etc.))• Discretionary labor system• Telecommuting system• Inside side job system• Outside side job system• Shortened work hours in order to care for children up to sixth gradeof elementary school (hours can be shortened by up to 3 hours/day in
10-minute increments)• Shortened work hours in order to provide nursing care to family (hours
can be shortened by up to 3 hours/day in 10-minute increments, for a
total of 3 years per person requiring care)• Exemption from overtime work in order to care for children under 3
years old
• Restriction on overtime work, exemption from late-night work, andstaggered work hours in order to care for children up to sixth grade ofelementary school• E xemption and restriction on overtime work, exemption from late-nightwork, and staggered work hours in order to provide nursing care tofamily•H alf-day paid vacation• “ Special Reserved” leave (purposes of use: medical care, nursing care,
physical checkups, fertility treatment, self-development, etc.)• C hild nursing/nursing care leave (ten days per year)• Volunteer activity leave• P ersonnel management systems for each course, including areaspecific positions (with course change system)•M aternity leave and childcare leave system (up to two years and one
month)•N ursing care leave system (for a total of two years per person requiring
nursing care)• Work-life management leave• C areer comeback system (reemployment system) etc.

Support for balancing work and childcare/nursing care
To enable employees to balance work and childcare/nursing care, we have introduced a shortened working hoursystem for childcare up to the completion of the sixth gradeand for nursing care up to a total of three years (per person
requiring nursing care). We are working to make the systemeasier to utilize by, for example, allowing employees to choose
to work shortened hours under the flextime system (at theheadquarters, branch offices, etc.). In addition to leave forchildcare and nursing care, we also provide a long-term leavesystem (work-life management leave) for accompanying a
spouse on a new assignment, etc., to support work-life balance.



Ratio of male employees taking childcare leave, etc.

Non-consolidated

(%)
100
80

Ratio of male employees taking childcare leave or leave for childcare purposes
Ratio of male employees taking childcare leave, etc.
91
89
79
60

60

20

19

18

The physical and mental health of our employees and their families is a prerequisite for
us to realize our mission of contributing to social infrastructure development by providing
solutions that are environmentally efficient, enhancing our competitive position and bringing
value to our stakeholders. We hereby declare that we regard our employees as “human capital”
and that we will work to maintain and improve their health and that of their families, and aim
to create a rewarding workplace where employees can fully demonstrate their abilities.
Sep. 2022 TAIHEIYO CEMENT CORPORATION President and Representative Director

Masafumi Fushihara

Health and Productivity Management Promotion System

Fundamental Policies

2021

2022

Ultimate responsibility for H&PM: President

1 Under the Health-Conscious Management Declaration,

Sustainability Management Committee

the Taiheiyo Cement Group, led by the Human Rights &Labor Practices Committee, will work with each businesssite to promote efforts to maintain and improve thehealth of employees and their families and to create arewarding workplace.
2 Employees will enhance their physical and mental
wellbeing and improve their quality of life by actively
working to maintain and improve their health and thatof their families.

Planning, execution,
evaluation and improvement

Planning, execution,
evaluation and improvement

Human Rights & Labor Practices Committee(Chair: Director in charge of Human Resources)

Human Resources Department
D&I and Health Promotion Ofﬁce(Director of Promotion Ofﬁce:
General Manager, Human Resources Department)

Person in charge of Health andProductivity Management promotion

Please see our website for more information about
our promotion of “H&PM”.

(Headquarters, branches, plants,
research centers, ofﬁces)

https://www.taiheiyo-cement.co.jp/english/
csr/human_rights_fr.html#section13

Human Resources Department
Health management room
& clinics(industrial physician, nurse)

Cooperation

Taiheiyo Cement Health Insurance Association, Taiheiyo Cement Labor Union

0
2023

(FY)

careers and increase engagement by allowing employees todemonstrate their strengths and take on tasks that are in linewith their interests.

Increasing Understanding of the Systems
We have an exclusive website for our employees regarding the various systems called "Kirakira Palette" in order to increaseawareness of the various systems that can be utilized for work-life management. The site provides information on childand nursing care, health, self-development, and other information to support
employees’ lives, which can be accessed from anywhere at anytime. We are working
to enhance the content.

82

Taiheiyo Cement Group Commitment to Health40

Support for side jobs both inside and outside the company
We have introduced a system that allows employees to workside jobs, both inside and outside the company. We expect
this system to promote the autonomous formation of diverse

We have been implementing H&PM
initiatives since FY2019, and basedon the belief that the health of ouremployees and their families is thefoundation of our business activities, weview our employees as "human capital"
and work to maintain and promote
the health of our employees and theirfamilies, as well as promote a workplacethat provides job satisfaction.

Main Health and Productivity Management activities
Under our Health-Conscious Management Declaration,
we are promoting health management through the PDCA
cycle, which includes establishing a Health and Productivity
Employee health care
• Employees receiving periodic healthexaminations• Recommendation of secondary testingand specific health guidance• Health care system utilization, etc.

Management activity plan for each fiscal year, implementing
measures, verifying their effectiveness, and reflecting theresults in measures for the next fiscal year.

Health literacy education

Preventive measures against lifestyle-related diseases• Implementation of e-Learning for all
employees• Provision of health information, etc.

• Three walking events are held annually• Introductions of healthy employees in thecompany newsletter• Implementation of "eating inmoderation" campaign, etc.

Smoking rate reduction measures

Mental health measures• Smoking cessation aids provided free ofcharge• Assistance for smoking cessation therapy• Running of Smoke-Free Day, etc.

• Conducting of stress checks• Follow-up interviews with employees at
high-stress offices• Establishment of a mental healthcounseling services, etc.

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The Driving Force/Booster of Value Creation — Sustainability Human Capital

Respect for human rights

Human Rights Due Diligence

In order to practice business activities in which respect for human rights is regarded as the most important issue forthe entire supply chain, we promote human rights awareness activities for the entire group.

Together with our suppliers, we will deepen our commitment to respect human rights and aim for sustainable growththroughout the supply chain.

Basic approach

Human Rights Due Diligence

We formulated our Basic Policy Concerning Human
Rights and Labor Practices in April 2015 with the awarenessthat respecting human rights and diversity is a fundamental
principle for a sustainable society, and taking into consideration
the Universal Declaration of Human Rights and the labor
standards of the International Labor Organization.
Furthermore, we signed the United Nations Global Compact
in May 2022 and are continuing to further enhance our efforts
to protect human rights.

Basic Policy Concerning Human Rights and Labor Practices

The United Nations Global Compact

The United Nations Global Compact (UNGC) is the world's
largest sustainability initiative, bringing together the United
Nations and the private sector (businesses and organizations)to build a healthy global society.
We signed the Compact in May 2022 and endorse theten principles related to the protection of human rights,
the elimination of unfair labor practices, environmental
responsibility, and the prevention of corruption, and we aretaking various steps to achieve these principles.

We recognize that respect for human rights not only means
not being complicit in human rights abuses ourselves, but also
taking responsibility for preventing and mitigating negative
impacts on our suppliers. The first Human Rights Due Diligence(Human Rights DD) was initiated in 2024 to identify potential
human rights risks in the Group's business activities andprevent or mitigate them by appropriate means.
The scope of the survey covered the Taiheiyo Cement Groupand several representative companies from the supply chain
centered on cement manufacturing, the backbone of the Group.

For the issues survey, we referred to the "Guiding Principles on
Business and Human Rights" issued by the UN Human Rights
Council, as well as several international norms and guidelines,
and identified 15 themes considered to be of particularimportance to the Group.
This year, based on the survey results, we will assess thecurrent status of human rights risks and examine corrective
measures and countermeasures, focusing on issues rated ashaving a high severity of impact.

1 R ecognizing that respecting human rights is a foundational

management concern, we will strive to address human rights issues.

Flow of human rights DD implementation

2 We will respect diversity and will not tolerate discrimination orharassment in any form.
3 Applying accepted international principles and laws and labor
practices in each country, we will respect the rights of all ourworkers, provide them with employment free of discriminationand strive to ensure equal employment opportunities.
4 We will strive for better working conditions and a workplaceenvironment that ensures the health and safety of our employees.
5 We will not tolerate child labor or forced labor under any
circumstances.

Educational Activities on Human Rights
CSR top management lectures for Group companies
were held on topics related to "Business and Human Rights
Responses Required of Companies". We also provided training
support to Group companies, distributed human rights
educational booklets, and provided information.
In FY2023, the theme of training for each job level of
employees was "Recent Dowa issues and efforts to prevent
harassment and how to use counseling services" andexplanatory meetings on understanding the importanceof harassment prevention and the procedures to use thecounseling services were held at all business sites.

Internal Training and Motto Submission (FY2023)
Training

Results

CSR top management lecture126

Human rights training for each job level at
headquarters

291

Human rights training at branches, research
centers and plants

1,412

Number of Human Rights Week mottos
submitted (employees and family members)

1,670

Our Human Rights Hotline
In addition to members of the harassment counselingcommittees and human rights committees conducting activities
to raise awareness of human rights to prevent harassmentand offering consultation, the Japan Institute for Women's
Empowerment & Diversity Management serves as an external
consultation service, providing an environment conducive toconsultation.
In FY2023, there were 14 consultations to the harassment
consultation service, all of which were handled appropriately inaccordance with the requests of the consulting parties.

Harassment Hotline
Internal

Human rights awareness promotion committee members
and harassment consultation members have been assigned
at all our business sites (56 in total)

External

Telephone and website consultations have been contracted
to the Japan Institute for Women’s Empowerment & Diversity
Management Harassment Hotline

N umber of Reports to the Harassment Hotline (FY2023) Non-consolidated
Internal
External

84

Sexual
Power
Other forms ofharassment harassment harassment
0
6
3
1

2

2

Total
9

Basic design• Identify critical human rights issues based on factors including international standards, external
requests, industry characteristics

Detailed design• Consider methods for evaluating human rights issues, and consider survey methods and techniques
for the purpose, as well as selecting priority targets to be surveyed

Grasping the current
situation• Conduct written and interview surveys

Evaluate and consider
response measures• Analyze survey results and create a risk heat map• Consideration of corrective measures to reduce human rights risks

Monitoring• Confirm the progress of corrective actions• Expand the scope of human rights DD• Design and implementation of grievance handling mechanisms

Human Rights Issues of the Taiheiyo Cement Group
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Respect for human rights
Non-participation in human rights violations
Access to legal remedies
Equality under the law and prohibition of discrimination
Harassment and abuse
Child labor
Forced labor
Occupational Health and Safety
Working hours
Appropriate working environment
Wages
Freedom of association and the right to collective bargaining
Rights of local residents and communities
Bribery and corruption prevention
Thorough procurement practices (supplier management)

First DD: Scope of survey
Major domestic primary suppliers (coal, limestone)
Production

Transportation

2 companies

Directly-controlled of domestic affairs

6 plants

Domestic Group

3 companies

Overseas Group

6 companies

Land transportation (domestic group)

1 company

Marine transportation (domestic group)

1 company

To be implemented from the second time onwards• Other domestic and overseas group companies• Major domestic secondary suppliers• Major overseas primary suppliers

585The Driving Force/Booster of Value Creation — Sustainability Human Capital

Initiatives to Improve Engagement

Discussion with the Independent Directors

Regular engagement surveys will lead to measures to motivate employees and increase their willingness tocontribute to the company.

The Stakeholder Communication Committee, a cross-functional organization within the Company, held a "Discussion
with the Independent Directors".

Basic approachWith Director Koizumi
engagement survey to visualize issues related to improving
employee engagement from the perspectives of whether
the workplace environment and ease of work are improving,whether there are changes in awareness regarding work styles,
and how we compare with other companies, and to link this to
the review and implementation of various measures.

Based on the belief that understanding and empathy
with the values of the Taiheiyo Cement Group, including its
mission and future vision, and increasing the willingness of
employees to contribute to the company will contribute tosustainable corporate growth, we are promoting the creationof a vibrant and comfortable workplace that respects humanrights and diversity. In June 2023, we introduced an employee

Conducting of engagement surveys
with company sizes ranging from 1,001 to 5,000 employees.
We will continue to conduct employee engagement
surveys on a regular basis and, while checking the scores, eachdepartment will deploy a PDCA cycle to analyse organizational
issues, formulate and implement action plans, and evaluate
and verify the effectiveness of such plans, aiming to improve
employee performance, revitalize the organization, andincrease corporate value over the medium to long term.

An engagement survey is one that visualizes "the willingness
to contribute to the organization and the psychologicalstate of being proactively engaged in one's work". In Juneof this year, we conducted engagement surveys to visualize
employees' "engagement with their work" and "engagementwith the organization's philosophy, culture, and environment,"
respectively, with the aim of aligning the direction of growth
between the company and employees.
Our engagement score of 66 was at a 3-point deviationfrom the benchmark score of 69. The scores by evaluation item
show that "provision of career opportunities" and "culture ofchallenge" need improvement, while "stress response," "worklife balance," and "satisfaction with salary" are expressed as ourstrengths. Note that the benchmark score here is the overall
average score for Wevox-using companies in all industries andAttendees T.Y. Tohoku Branch remote

S.T. Cement Business Division Administration Department
H.N. Kamiiso Plant remote

R.N. Chubu Hokuriku Branch

Carbon Neutral Technology Development Project Team
N.N. The
remoteA.N. International Business Division
Host

Q
Conceptual diagram of initiatives to improve engagement

Improvementof corporate
value
PLAN
Organizational
issue analysis

A
CHECK-ACTION
Evaluation andveriﬁcation ofeffectiveness86• Improvement of
employee performance• Revitalization of organization

P
D DO
C
Action plandevelopment andimplementation

Y.S. General Affairs Department

What are some of the characteristics ofthe company from the perspective of its
independent directors?
We strongly feel that each and every employee

A takes pride in being part of a leading company withover 140 years of history. There have been times ofhardship in the company's long history, but it has overcome
these hardships, is actively expanding overseas, and it is time
for the struggles of the past to blossom. On the other hand,looking within the group, there are only a few completely
different industries, giving the impression of a strong cement
specialization.

Our company now offers a wide variety of work

Q styles. Please share your advice on what you
value in future career development.

When I was giving birth and raising my children,

A we did not have the support that we have today, so I

feel that these are great times. It is important not tointerrupt your career, but to take advantage of all the support
you can get, because you will not be able to keep going if
you have to take on work, childcare, caregiving, and family
all by yourself. It is said that it takes the support of 10 people
to nurture a female businessperson, so it is difficult to do italone no matter how hard you work. Therefore, it is importantto always remain grateful to those around you, including yourfamily and colleagues. Since society is now promoting theactive participation of women, we should try to get on board
with this trend.

After the DiscussionA.N.
Normally, we rarely have the opportunity to hear directly from management, as their intentions
and ideas go through various internal processes before reaching us. Through the exchange ofvarious opinions at this discussion meeting, we were able to gain a clearer understanding of whatis expected of us in our daily work, and it was a valuable opportunity to increase our motivation.

87

Discussion with the Independent Directors

The Driving Force/Booster of Value Creation — Sustainability Human CapitalWith Director Emori

Attendees T.O. Chubu Hokuriku Branch

A.N. The Carbon Neutral Technology Development Project TeamremoteK.M. Nghi Son Cement Corporation remote

T.I. Kumagaya plant

S.Y. General Affairs Department
A.S. Production Department

Y.M. Corporate Planning Department
Host

Q

Y.S. General Affairs Department

We are in a difficult business environment rightnow, what will it take to keep us motivated?
It is important for young people to align their

A vectors with the president's vision of "becoming an

outstanding leading company in the Pacific Rim," andto look ahead to the future and work hard without being too
concerned about the situation in front of them. I hope that you

With Director Furikado

will face your work by embodying your own themes, such as"What is it that I can do?" and "What should I do?" to overcome
difficult situations. When encountering difficulties, actively
engage in dialogue with your superiors and seniors to get intouch with their humanity and outlook on life. That way, you
may find some constructive answers. I hope that all of you will
have an unshakable focus in your lives and become people
equipped with virtue.

Q

What is the experience that a young employee
should have?

I hope that you will make an effort to gain
experience and knowledge of company operations andmanagement. Furthermore, in order for our company
to accelerate global management in the future, language skills
that can be used overseas and the ability to communicate withlocal staff are also indispensable. In order to become suchsought-after human resources, I hope that you will actively lookoutward from a young age.

A

Attendees A.H. Central Research Laboratory
S.H. General Affairs Department
M.Y. Saitama Plant remote

S.I. Taiheiyo Cement Philippines, Inc. remote
T.H. Chugoku Branch

M.O. Human Resources Department
K.S. Accounts Department
Host

Q

Y.S. General Affairs Department

What are your expectations for young
employees in order for our company to become
an outstanding leading company?
While energy prices continue to soar, the priceA pass-through to cement has not progressed well,resulting in very difficult business conditions in
FY2023. However, times of trouble are opportunities to change

things radically. As the top manufacturer in Japan, we must
develop and lead the way on cement pricing policy. I would
like to encourage young employees, with their fresh andflexible senses, to proactively make various proposals from theperspective of "if I were the president".

Please tell us about what it is that our company

Q should communicate more to society.

Cement is the base material for infrastructure and,A as a necessary industry, it will not disappear in the

future. The fact that we have created a technology thatutilizes a wide variety of waste materials to produce cement andcontributes to the circular economy is proof that the cement
industry itself is sustainable. On the other hand, it is less wellknown that the company is actively working to achieve carbon
neutrality and that it is a global company with overseas factories
accounting for nearly 40% of its production capacity. I think thatshould be more widely communicated to society.

After the DiscussionS.H.
We asked them about the corporate culture that they felt was unique to our company. The
foundation of our company is the long 140-year history built by our predecessors, and I once again
recognize that it is my role to pass on this history to the next generation. I would like to use thisopportunity of this discussion meeting as an impetus to work harder than ever before.

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