Amidst the rapidly changing and increasingly uncertain business environment, as we are increasingly required to face various social issues, stay acutely aware of the progress of innovative technologies, and take on the challenge of creating new value, we are working on three pillars of human capital enhancement based on the belief that human resources growth is the foundation of management while also taking into account the perspective of human capital management: “talent development,” “diversity & inclusion,” and “employee engagement.”

The three pillars of human capital enhancement are “talent development,” “diversity & inclusion,” and “employee engagement.”

We promote talent development measures that include support for career design development in addition to the development of self-directed employees and DX talent. We respect employees’ motivation to learn and actively support them.
　

【What are “self-directed employees”?】
“Autonomous human resources” refers to people who deeply resonate with NOF Group’s values and philosophy and are capable of taking initiative. They are individuals who respond quickly to changes in the business environment, proactively carry out their work, and see it through with a strong sense of responsibility. We believe that such human resources, who possess an exceptional sense of ownership, think and act as if the company’s policies and the challenges that arise in various situations are their own, and make significant contributions to the NOF Group’s
sustainable growth.

We believe it is essential that all employees — regardless of gender, age, nationality, disability status, or other attributes — feel free to express their opinions and ideas in the workplace and thrive. We strive to create a work environment where all employees can work comfortably.

We will continuously advance creation of mechanisms, systems, and workplaces that enable each employee to understand our Corporate Philosophy and Values and perform their duties with motivation. We will also conduct employee engagement surveys on a regular basis and strive to improve job satisfaction.

The Sustainability Committee, which is attended by all Directors, identifies and discusses materiality issues (important issues) related to human capital and reports to the Board of Directors.
The Sustainability Committee sets KPIs and numerical targets for each materiality issue, then deliberates on the progress of each. The committee also discusses KPIs and numerical targets for the next fiscal year to continuously improve the level of our activities.

At the Strategic Meeting, attended by Directors concurrently serving as Operating Officers and Operating Officers with titles, participants deliberate on planned recruitment numbers, assignments, and ensuring diversity and evaluate recruitment status aimed at securing diverse personnel, based on the belief that accepting and respecting diversity promotes innovation. In addition, we are working to identify issues through employee engagement surveys, stress check assessments, presenteeism surveys, etc. while also deliberating our health management policies and the status of initiatives, striving to raise the effectiveness of each initiative.

At Human Resources Meetings, which are attended by Directors concurrently serving as Operating Officers and Operating Officers with a title, members deliberate on Company-wide talent development plans and evaluate the details of their implementation in order to steadily promote talent development measures that support sustainable business growth. The meetings also provide a space to implement deliberations on personnel evaluations at the general manager level, periodic interviews, interviews with candidates for promotion, and reports from managerial candidates on recommendations for management policies and other matters, and members are involved in understanding the characteristics of personnel at the general manager level and talent development measures, and a system has been established to implement a PDCA cycle for development of human resources including successive personnel.

The Nomination Committee, of which Outside Directors comprise the majority, conducts evaluations and deliberations related to successive talent development and provides feedback to the Board of Directors.

The Board of Directors receives reports from the Sustainability Committee and others, as well as feedback from the Nomination Committee. In addition, we are working to identify issues through employee engagement surveys, stress check assessments, presenteeism surveys, etc. while also deliberating our health management policies and the status of initiatives, striving to raise the effectiveness of each initiative. The Board of Directors engages in multifaceted discussions from perspectives such as fulfilling social responsibilities, allocating management resources, and ensuring the effectiveness of measures. The Board views human resources growth as an important issue directly linked to long-term corporate value enhancement and works to strengthen its foundation.

The NOF Group will promote initiatives listed below to achieve “NOF VISION 2030,” our vision for FY2030, and to establish earnings foundations in the three fields we are targeting—“Life / Healthcare,” “Environment / Energy,” and “Electronics / IT”—with an eye toward further corporate growth (sustainable enhancement of corporate value) beyond that, and to achieve a cost structure adapted to the new business environment.
With health and productivity management serving as the foundation for personnel success, we will pursue initiatives centered on the following three pillars to establish systems and mechanisms that enable each employee to fully demonstrate their abilities and voluntarily take on proactive challenges.
　

• Recruiting and developing innovation personnel capable of leading new value creation and personnel who can thrive in new domains and growth fields
• Supporting the growth of highly engaged personnel who recognize that each person can initiate change in every workplace and every operation
• Creating an environment that fosters an organizational culture through knowledge sharing and integration and improves productivity and creativity throughout the organization

1. Indicators and targets will be applied in FY2026.
2. Employee engagement score by Qraft, provided by M.STAGE CO., LTD.

[Published Data]

• Investment for talent development

[Published Data]

• Rate of hiring of female new graduates recruited for career-track positions
• Ratio of female management-level employees
• Percentage of employees with disabilities
• Pay gap ratio between male and female full-time employees
• Rate of male employees utilizing childcare leave

[Published Data]

• Overall employee engagement score
• Utilization rate of annual paid leave

In promoting human capital management, the NOF Group recognizes the existence of trade-offs in which the “positive aspects (opportunities)” and “negative aspects (risks)” arising from each measure are intricately interrelated.
For example, optimizing working hours through work-style reform contributes to employee health and improved work-life balance, but it also constrains time for on-the-job development and may temporarily slow productivity and development in the short term. Working from home can also increase flexibility and strengthen emergency response capabilities, but may create new challenges such as reduced communication and information security management. We manage these conflicting factors from a broad perspective and implement risk countermeasures and responses to issues.

We have established a Risk Management Committee to manage risks related to human capital and have put in place a system whereby the Committee reports to the Board of Directors for supervision by way of the Sustainability Committee.

The Sustainability Committee, which is attended by all Directors, oversees the results of risk assessment related to human capital and reports to the Board of Directors.

The Risk Management Committee, which comprises divisions with jurisdiction over risks and others, comprehensively identifies various management risks surrounding its business and conducts Company-wide risk assessment on the level of impact and potential for occurrence of each risk item once every two years. On each occasion, it reviews risk items and worst-case scenarios and identifies key risks for monitoring. Among the various management risks surrounding our business, we conduct risk assessments to evaluate to what extent the impact of risks related to human resources and labor might change in the future. The results of this analysis are reported to the Sustainability Committee, which evaluates risk measures.

Meeting Frequency:2 meetings (FY2025)

The NOF Group is working on various initiatives related to human capital.