EFFORTS01EFFORTS02EFFORTS03 Referral Hiring*1 and Alumni Hiring*2 We introduced these systems in April 2025. Referral hiring reduces the likelihood of mismatches, as candidates are recommended by current employees who understand the Company’s culture and operations. Alumni hiring targets individuals who worked at the Company for three years or more before leaving and are seeking reemployment within 10 years of leaving. Neither method guarantees employment, and all candidates are screened in accordance with Company regulations.*1 A hiring method in which employees recommend acquaintances or friends*2 A hiring method in which former employees are rehired Establishment of a Human Resources and Labor Consultation Desk Employees can now consult the Company on issues related to labor and the workplace environment. While a helpline (internal whistleblower system) is already in place for reporting serious legal or ethical violations without fear of retaliation, we established the separate Human Resources and Labor Consultation Desk in April 2025 to serve specifically as a point of contact for workplace-related concerns. Led by the General Affairs & Human Resources Division, this initiative aims to help resolve problems early on. System Allowing Accumulation of 80 Days of Leave Employees can accumulate up to 80 days of unused annual paid leave. This saved leave can be used in cases such as illness or injury, or for nursing and caregiving for family members. The system is intended to ensure that employees can continue working with peace of mind, even in the event of unforeseen circumstances. Professional Human Resource Certification System (CP System) To secure expert human resources, the Company offers treatment separate from the qualification grading system applied to general employees. We also continue to examine the framework for a proprietary job-based employment system.As one way of utilizing DX in our personnel system, we are creating a talent management system. By making human resource information such as the skills and abilities that each employee has acquired visible, the Company will strive to increase its competitiveness by optimally allocating employees to positions where they can maximize their capabilities. In the fiscal year ended March 31, 2025, we began requiring employees on a global career track to submit a career declaration sheet, in which they list any public or private certifications and skills they hold, as well as any departments or roles they hope to become involved in. We aim for the system to go into full operation during the fiscal year ending March 31, 2026.Improving the workplace environment is essential to ensuring that employees stay motivated and engaged in their work. Since 2023, we have been conducting employee surveys and continuously analyzing the relationship between engagement scores and the implementation of action plans at each workplace. In our third employee survey, in 2025, the overall score was up 1.5 points from the first survey. While modest, this increase confirms the positive impact of our initiatives. In addition, we revised our corporate governance framework to incorporate employee survey results into executive compensation KPIs. The evaluation now considers four indicators, three core themes (philosophy and strategy, organizational culture, and transformational activities), and the overall score and assesses whether scores have improved year on year. By integrating this non-financial indicator of employee engagement into executive compensation alongside financial indicators such as consolidated net sales, consolidated operating income, and total shareholder return, we aim to further advance our approach to human capital management.A Unique Human Resource SystemTalent Management SystemEmployee SurveyDiversified Hiring Methods and Human Resource Policies That Enhance Workplace Comfort Business strategyHuman resource strategyTalent Management System• Find the best talent• Conduct training to bring out the best in each individual• Place employees appropriately• Evaluate properly• Manage motivationMeet Company targetsPrevent an outflow of human resources37
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