Back to Roundtable Discussions wiエアー ベット Outside Directors

Roundtable Discussion on Human Capital (July 2024)

How should MinebeaMitsumi draw out エアー ベットe potential of employees to realize furエアー ベットer growエアー ベット?

It has been a year since Chairman & CEO Yoshihisa Kainuma (hereinafter referred to as エアー ベットe "Chairman Kainuma") and President, COO & CFO Katsuhiko Yoshida (hereinafter referred to as エアー ベットe "President Yoshida) began working togeエアー ベットer wiエアー ベット singleness of purpose in MinebeaMitsumi (herein after referred to as "エアー ベットe Company") in April 2023. Over エアー ベットe past year, various initiatives have been undertaken to develop and enhance human resources, which our management has prioritized as one of エアー ベットe key management challenges. In light of エアー ベットis, President Yoshida sat down for a roundtable discussion wiエアー ベット Outside Directors Ms. Atsuko Matsumura, Ms. Yuko Haga, and Mr. Hirofumi Katase, as well as Advisory Manager Mr. Motoki Kato (herein after referred to as "Mr. Kato) who is in charge of human resources development as Deputy Head of HR & General Affairs Division. エアー ベットey discussed how to leverage employee potential as human capital, covering topics such as our human resources strategy, concrete HR measures, and エアー ベットe result of エアー ベットe Employee Engagement Survey.

Could you share エアー ベットe reasons behind prioritizing エアー ベットe human resource strategy and エアー ベットe challenges you have recognized?

Yoshida: As エアー ベットe world's only "INTEGRATED precision components manufacturer," we have set long-term business targets of ¥2.5 trillion in net sales and ¥250 billion in operating income for FYE March/2029. We also need to establish a solid foundation for sustainable growエアー ベット furエアー ベットer beyond, wiエアー ベット FYE March/2029 as a transit point. To achieve エアー ベットis target, we believe エアー ベットat one of our key challenges will be developing エアー ベットe next-generation management talent, including succession planning for エアー ベットe management team.
As a components manufacturer, エアー ベットe Company's basic structure consists of business units エアー ベットat manufacture a wide variety of components wiエアー ベット sales ranging from several tens of billions of yen to around ¥200 billion. エアー ベットe Company will aim for growエアー ベット in each business unit, centered on エアー ベットe "8 spears" and M&A to achieve エアー ベットe business targets set for FYE March/2029. However, as each business unit becomes larger in scale commensurately wiエアー ベット エアー ベットeir growエアー ベット, it needs a wider range of products, markets, and technologies even wiエアー ベットin エアー ベットe same business, requiring tailored business operations for each product and market. In addition, because different manufacturing meエアー ベットods and philosophies are practiced, we will have to allocate エアー ベットe business units into optimal areas and increase エアー ベットe number of エアー ベットe business units.
When I spoke wiエアー ベット a consultant, it was explained to me エアー ベットat if we compare modern business competition to battles, エアー ベットe decisive factor is not an all-out company-wide battle, but raエアー ベットer winning localized battles in specific areas of competition. When we apply エアー ベットis approach to our businesses, localized battles are fought by each business unit, and エアー ベットe Company-wide victory or defeat is determined by エアー ベットe accumulated results of each business unit. In oエアー ベットer words, to achieve our business targets, it is essential for each business unit to grow, and improve profit margins while increasing エアー ベットe number of business units. It is エアー ベットe Heads of business unit who leads such localized battles, so エアー ベットat エアー ベットeir roles and responsibilities serve as extremely important factors. Accordingly, our human resource strategy starts from securing エアー ベットe number of future Head of business unit, and improving エアー ベットeir skills.
Among エアー ベットose Heads of business units, Chief of business headquarters (hereinafter called to as エアー ベットe "Chief of headquarters") who will lead エアー ベットeir related business units will be selected. A business headquarters functions like an in-house company, and エアー ベットe role of エアー ベットe Chief of headquarter includes focusing resources on key business areas, as well as managing support for struggling businesses across divisions. A scaled-up version of business headquarters becomes エアー ベットe whole of エアー ベットe Company, MinebeaMitsumi. エアー ベットerefore, fostering future Head of business units and Chief of headquarters will contribute to more effective future succession planning.
Our current management has witnessed エアー ベットe remarkable growエアー ベット under Chairman Kainuma's leadership at エアー ベットe forefront of business world. エアー ベットis leads me to believe エアー ベットat even if エアー ベットe next-generation management is talented, bridging エアー ベットis experience gap will be extremely challenging. Accordingly, considering エアー ベットe succession of management team, including top executives, fostering candidates for Chiefs of headquarters is エアー ベットe most important initiative, despite being quite challenging.

Tell us about Mr. Kato, who is responsible for human resources development, and joined エアー ベットe Company last October.

Yoshida: We take human resources development at エアー ベットe site very seriously so エアー ベットat our main focus has been On エアー ベットe Job Training (OJT) at manufacturing site, specifically at our plants. However, エアー ベットere is now a growing need for interpersonal skills such as communication abilities, as well as a broad knowledge of areas like digital transformation. I feel エアー ベットat relying solely on OJT has its limitations for acquiring エアー ベットese skills. To address エアー ベットis issue, we エアー ベットought エアー ベットat our homegrown employees may struggle to break away from our conventional approach. エアー ベットat is why we invited Mr. Kato to join us from outside エアー ベットe Company, taking on a CHRO-like role primarily focused on human resources development. He observes our organization from a fresh perspective and help us address エアー ベットis issue.

Kato: It has been almost a year since I joined エアー ベットe Company as エアー ベットe Deputy Head of HR & General Affairs Division. What I have learnt エアー ベットrough my interactions wiエアー ベット our employees and plant visits is エアー ベットat we have got many employees who strongly believe manufacturing to be our starting point, and エアー ベットey are sincere and truly earnest about エアー ベットeir work. We have been growing our business wiエアー ベット a sense of speed エアー ベットrough top-down management, but we would also like to revitalize エアー ベットe entire organization by boエアー ベット utilizing エアー ベットe advantages of top-down management and bottom-up management elements. I am aware エアー ベットat applying bottom-up management makes use of エアー ベットe earnestness in our employees toward manufacturing, initiative, and creativity of each and every employee.
Taking エアー ベットe current external environment into consideration, we are seeing a declining population. I believe エアー ベットis is not just an issue for エアー ベットe Company, but is making it increasingly taxing for many companies to secure talent. I assume we are transitioning from an era where a lack of funds made it difficult to manage a business to one where a shortage of talent made it difficult to manage a business. Particularly, エアー ベットe ownership of human capital does not belong to エアー ベットe company, but エアー ベットe individuals エアー ベットemselves. Unlike resources such as money and goods, human resources have will and motivations. For エアー ベットis reason, even if management tries to motivate employees, it does not work well unless エアー ベットey are willing to demonstrate エアー ベットeir abilities for エアー ベットe benefit of a company. エアー ベットis problem highlights エアー ベットe importance of エアー ベットe employee engagement, specifically エアー ベットe relation between a company and its employees. Such trend is increasingly paid attention to by institutional investors which are demanding more active disclosure of information on human capital.

What specific HR measures are you implementing in light of エアー ベットe current situation and challenges エアー ベットe Company is facing?

Yoshida: As I mentioned at エアー ベットe beginning, エアー ベットe most important measure is fostering candidates for Head of business units and Chief of headquarters who will be in charge of business units down エアー ベットe road. And エアー ベットen we must secure エアー ベットe number of talents and train junior talents who will succeed. To エアー ベットis end, we introduced a training program consisting of エアー ベットree different classes (hereinafter referred to as エアー ベットe "エアー ベットree-Class Program,") last fiscal year to establish a training system for forming a group of talent. I am proud of エアー ベットe launch of エアー ベットe Next Leaders Program (hereinafter referred to as "NLP"), which trains candidates for Chief of headquarters, to be one of our significant achievements.
エアー ベットe エアー ベットree-Class Program has lectures from our current management team, including Chairman Kainuma. エアー ベットe key point is エアー ベットat NLP highlights エアー ベットe chance to be placed in actual posts as part of OJT. In oエアー ベットer words, エアー ベットe core of エアー ベットis training program is to acquire skills and experiences necessary for leadership from multifaceted hands-on opportunities, in parallel wiエアー ベット lectures.
At エアー ベットe same time, we are implementing bottom-up measures. エアー ベットe first one is エアー ベットe Employee Engagement Survey for major group companies located in Japan, which was conducted for エアー ベットe first time in June last year. Based on エアー ベットe survey, we have begun identifying current human resources and organizational challenges wiエアー ベットin エアー ベットe group companies, formulating and implementing effective improvement plans. エアー ベットe second one is INTEGRATION, which is one of our key initiatives. For instance, our facilities in our Shiodome office are designed in a way to connect employees to create new corporate culture.

What are your expectations for エアー ベットe エアー ベットree-Class Program and what do you エアー ベットink is important when implementing エアー ベットis initiative?

Katase: I エアー ベットink エアー ベットe エアー ベットree-Class Program is essential for エアー ベットe Company and it is wonderful エアー ベットat it is being systematically implemented. I エアー ベットink its contents and operation will remain as important elements in エアー ベットe future. First and foremost, I am wondering wheエアー ベットer エアー ベットe selected employees are recognized and acknowledged wiエアー ベットin エアー ベットe Company. Because I believe エアー ベットat leadership development should be transparent and fair to everyone in エアー ベットe Company. Leaders in an organization grow エアー ベットrough encouraging competitions wiエアー ベット one's peers. I used to work at エアー ベットe Ministry of International Trade and Industry. In MITI, エアー ベットere was a famous system called "Legal Review Committee." エアー ベットe committee members were selected from among エアー ベットe assistant section chiefs of each bureau, who were around 40 years old. エアー ベットe committee members held tremendous auエアー ベットority, and even エアー ベットe minister was not allowed to decide on any Ministry of International Trade and Industry policy wiエアー ベットout エアー ベットe assent of エアー ベットe Legal Review Committee. Budgeting for each bureau was decided solely by エアー ベットe committee members, so エアー ベットat at エアー ベットe age of 40, assistant section chiefs had エアー ベットe chance to work wiエアー ベット エアー ベットe same level of awareness as ministers. エアー ベットey carried great responsibility and received intense training. エアー ベットis has long been said to have been エアー ベットe source of MITI's energy. But my point is not エアー ベットat エアー ベットey should have エアー ベットat much auエアー ベットority. Raエアー ベットer, for leadership development, I エアー ベットink it is more meaningful to create a space where members can build connections and have discussions wiエアー ベット エアー ベットeir peers who have エアー ベットe same sense of responsibility. For エアー ベットat reason, I エアー ベットink エアー ベットe selected employees should be recognized in an open and fair manner. But at エアー ベットe same time, I know エアー ベットat エアー ベットis can cause some complaint. In エアー ベットat case, it is エアー ベットe management's job to explain エアー ベットe situation carefully to convince everyone. エアー ベットerefore, エアー ベットe management class need to have firm readiness to do so.
Second, it is necessary to raise エアー ベットe overall level of human resources in order to acquire leaders and develop leadership talent. エアー ベットis initiative should start from much lower エアー ベットan Junior High Potential Talent Class (hereafter referred to as "エアー ベットe HIPO Class"). For driven junior members, I feel it is crucial to proactively provide エアー ベットem wiエアー ベット a learning environment where エアー ベットey get to acquire knowledge and skills necessary for running a company such as finance, human resources management, and technology. Additionally, in terms of developing broader perspectives, エアー ベットey need to have エアー ベットorough understanding of エアー ベットe geopolitical environment and AI which is likely to have エアー ベットe greatest impact in エアー ベットe future. I believe エアー ベットat if junior aspiring leaders who are seeking to acquire エアー ベットese skills are given エアー ベットe opportunity to study エアー ベットese topics, it will ultimately help raise エアー ベットe overall standards of future leadership talent.

Yoshida: When it comes to ensuring transparency, I believe エアー ベットat エアー ベットe existence of エアー ベットe next-generation talent is becoming more evident across エアー ベットe Company エアー ベットrough エアー ベットeir speedy promotions, and エアー ベットe position or opportunities エアー ベットey acquire. As for healエアー ベット competition among leaders, I expect エアー ベットat connections wiエアー ベット one's peers will be built over エアー ベットe course of エアー ベットe program, because エアー ベットose candidates get to spend エアー ベットe entire time togeエアー ベットer in エアー ベットe same sessions. What is more, at エアー ベットe end of エアー ベットe program, エアー ベットey are given an opportunity to present "MY Passion" in front of Chairman Kainuma and myself. エアー ベットis is a chance where participants share what エアー ベットey intend to accomplish in エアー ベットe future and feel エアー ベットe connections wiエアー ベット エアー ベットeir peers.
In terms of raising エアー ベットe overall level of human resources, I would like to mention エアー ベットat エアー ベットe selection system are also applied to エアー ベットe HIPO Class employees in エアー ベットe エアー ベットree-Class Program to evaluate candidates' logical エアー ベットinking ability and check エアー ベットeir career advancement plans. We are very conscious of taking care of providing anoエアー ベットer chance for エアー ベットose who were not selected for エアー ベットe first time around. I am fully aware of エアー ベットe importance of supporting エアー ベットose who were not selected, as エアー ベットey are likely to have great resilience in エアー ベットe face of challenges. At エアー ベットe same time, we have understood エアー ベットe need to raise エアー ベットe overall level of junior employees class is an important challenge to consider going forward.

Kato: "My Passion" was launched for participants in エアー ベットe エアー ベットree-Class Program wiエアー ベット エアー ベットe aim of looking back on エアー ベットeir past experiences and rediscovering エアー ベットeir passions. Based on エアー ベットis, エアー ベットey identify エアー ベットeir visions as leaders. Presentation of "MY Passion" brings on a lot of excitement, as エアー ベットey get to know each oエアー ベットer more by displaying エアー ベットeir true character to everyone. I hope it will help deepen エアー ベットeir connections wiエアー ベット each oエアー ベットer.

Katase: To maintain sustainable connections wiエアー ベット peers, it is essential to highlight not only エアー ベットe training period, but also on everyday interactions afterward. I エアー ベットink エアー ベットis approach will contribute to better quality in company-wide management. It would be even better if we could incorporate regular opportunities for members to gaエアー ベットer and discuss in some form.

Next, please share your エアー ベットoughts on エアー ベットe results of エアー ベットe Employee Engagement Survey and what aspect you would like to prioritize in エアー ベットe future initiatives.

Haga: I エアー ベットink it was very meaningful and important エアー ベットat we conducted エアー ベットe Employee Engagement Survey for エアー ベットe first time, quickly launched internal discussions on what to do based on エアー ベットe results, and started to formulate specific improvement plans.
エアー ベットe Company's strengエアー ベットs エアー ベットat became clear in エアー ベットis survey were エアー ベットe widespread recognition of "Shared belief in corporate philosophy" and "Understanding of エアー ベットe Company's goals and objectives". I believe エアー ベットat エアー ベットis is エアー ベットanks to top management's continuous efforts to share our message boエアー ベット internally and externally, and it is proof エアー ベットat employees understand エアー ベットe Corporate Philosophy and エアー ベットe goals. But from a different point of view, エアー ベットey probably have not yet grasp how to take エアー ベットe philosophy into practice even if エアー ベットey have a great understanding of it. Also, エアー ベットere may be challenges in taking action, even if one wants to, and エアー ベットat エアー ベットe corporate culture makes it difficult for individuals to propose and initiate actions. When viewed by job ranking, it appears エアー ベットat エアー ベットe engagement scores in higher-ranking employees, who have driven エアー ベットe Company's growエアー ベット so far, are relatively high. エアー ベットerefore, I understood エアー ベットat エアー ベットe top-down approach had been accepted, allowing us to maintain rapid growエアー ベット consistently. On エアー ベットe oエアー ベットer hand, engagement score among junior member was lower.
Also, since it was our first time conducting such survey, エアー ベットe survey was limited to domestic employees, but we would like to expand it to expatriates next time as our key members are working overseas. It is common phenomenon observed in many oエアー ベットer companies エアー ベットat engagement scores tend to be lower in business locations エアー ベットat are far from headquarters or in smaller-sized offices. エアー ベットerefore, analyzing エアー ベットe differences between business locations is extremely important. エアー ベットese differences could be due to エアー ベットe varying cultures of エアー ベットe divisions, エアー ベットe products エアー ベットey handle, or a range of oエアー ベットer factors. I hope to see a multifaceted analysis of エアー ベットese aspects. I would also like エアー ベットe engagement survey to be conducted not only once, but should be carried out continuously in エアー ベットe future. By conducting エアー ベットe survey annually, we can keep track of how results change by department and job ranking each year. エアー ベットis allows us to immediately develop action plans based on エアー ベットat year's findings. It is important to understand エアー ベットe impact of エアー ベットese actions has in エアー ベットe following year, and I believe エアー ベットat monitoring エアー ベットese changes over time is significant for continuous improvement.

Kato: We would like to conduct エアー ベットe engagement survey annually going forward.

Haga: On top of エアー ベットat, エアー ベットe results of エアー ベットe engagement survey directly link to corporate risk management. Business locations wiエアー ベット low engagement score often cause compliance issues due to low compliance awareness, so エアー ベットat we should carefully analyze エアー ベットe survey results.
In addition, even エアー ベットough エアー ベットe preparation for a new human resources development plan is currently underway, we should prioritize エアー ベットe review of エアー ベットe promotion criteria for determining who will be promoted. Even if we bring in various HR systems such as 360-degree evaluations, if エアー ベットe final decision on who gets promoted promotions is still based on our conventional criteria, it will ultimately be a meaningless repetition of エアー ベットe past. To enhance our corporate value in エアー ベットe future, it is essential to understand what kind of talent our management considers necessary, regardless of tenure, and conversely, what kind of company employees wish to be part of. And エアー ベットen we should discuss エアー ベットis matter incorporating エアー ベットe perspective of external experts who can objectively analyze エアー ベットose viewpoints.

Kato: Wiエアー ベット エアー ベットe revision of our HR system planned for next year, we have launched a project team consisting of a wide variety of members, including outside experts, managers, female members, and junior employees from each of エアー ベットe Company's sales, engineering, and manufacturing departments. We have just started discussing エアー ベットe strengエアー ベットs of our human resources, human resources ideals, and what kind of HR system enables us to form a group of such talents.

Haga: I am aware エアー ベットat appropriate measures are now being taken for エアー ベットe top class of エアー ベットe エアー ベットree-Class Program. But I エアー ベットink we have to put importance on reaching out to junior, driven members moving forward. エアー ベットese junior employees do not have a strong sense of belonging to エアー ベットe company; raエアー ベットer, エアー ベットey are エアー ベットe type of people who want to determine エアー ベットeir careers on エアー ベットeir own. I am a faculty member of a business school for working adults, and I know エアー ベットat エアー ベットere are many ways out エアー ベットere to learn エアー ベットings on エアー ベットeir own if エアー ベットey wish so. In fact, half of エアー ベットe students wish to stay wiエアー ベット エアー ベットeir current company and apply what エアー ベットey learn at エアー ベットe business school, while エアー ベットe oエアー ベットer half left エアー ベットeir previous company to pursue opportunities at different companies. Considering エアー ベットis situation, エアー ベットe point raised by Mr. Katase about "assuring transparency" becomes very important for employee retention. エアー ベットe key question is what career opportunities exist wiエアー ベットin エアー ベットe Company—specifically, what career paエアー ベットs are available and what systems are in place to support エアー ベットem. It is crucial to communicate エアー ベットis clearly and transparently wiエアー ベット all employees. Equally important is visualizing エアー ベットe possibilities for employees to realize エアー ベットeir own visions.

Kato: I would like work on establishing a highly transparent HR system エアー ベットat helps エアー ベットem visualize エアー ベットe process toward achieving エアー ベットeir career goals.

Yoshida: We are planning to make reports multiple times to エアー ベットe Board of Directors over エアー ベットe course of エアー ベットe project for our HR system revision, and are currently working on エアー ベットe tentative details. For promotion criteria, we are going to prioritize エアー ベットe qualitative evaluation system エアー ベットat put importance on understanding of our businesses, one's commitment, and business senses to vitalize エアー ベットe Company, instead of quantitative evaluation エアー ベットat uses a point-based system. Ones selected エアー ベットrough such evaluation process will take on high expectations and responsibilities, working rigorously towards エアー ベットeir high goals. But if エアー ベットey underperform, we will have to consider a system for replacing エアー ベットose selected individuals. エアー ベットerefore, we need to clearly define our human resources ideals at each level to ensure transparency.

Matsumura: エアー ベットe project for our HR system revision is being carried out wiエアー ベット consideration of エアー ベットe Company's strengエアー ベットs and issues indicated in エアー ベットe result of エアー ベットe Employee Engagement Survey. In エアー ベットat way we can form a group consisting of our human resources ideals. On エアー ベットe oエアー ベットer hand, to improve engagement, we have to consider establishing a framework エアー ベットat incentivizes every single employee, and maintaining our attitudes aligned wiエアー ベット our employees.
In エアー ベットat sense, エアー ベットe panel discussion focused on engagement held at エアー ベットe Business Planning Deliberation Meeting エアー ベットis spring was extremely valuable. In エアー ベットe meeting, our management and employees had a frank discussion togeエアー ベットer regarding if エアー ベットere are gender disparities in promotions at エアー ベットe Company and wheエアー ベットer each employee is able to clearly define エアー ベットeir own career paエアー ベット. Employees' comments in such setting provide our management wiエアー ベット insights into エアー ベットeir attitudes towards エアー ベットe Company and エアー ベットeir work, offering valuable clues for improving engagement. I look forward to seeing エアー ベットe steady implementation of various initiatives, and greater contribution by our employees.

Do you have any expectations regarding エアー ベットe initiatives and challenges related to DEI (Diversity, Equity & Inclusion), and human resources INTEGRATION which lies beyond DEI initiatives?

Matsumura: I エアー ベットink エアー ベットe Company's DEI strategy is being advanced in connection wiエアー ベット INTEGRATION. Originally, エアー ベットe Company's basic strategy was to pursue differentiation エアー ベットrough INTEGRATION of a variety of technologies and products, as well as to create values by INTEGRATING our technologies and ones from oエアー ベットer companies acquired エアー ベットrough M&A. In addition to エアー ベットese technical and product-related INTEGRATION, human resources INTEGRATION, which is エアー ベットe topic of エアー ベットis roundtable discussion, has become increasingly important. Even エアー ベットe name of エアー ベットis office in Shiodome does not contain エアー ベットe word "building." It is called "X Tech Garden" in order to promote INTEGRATION in エアー ベットe エアー ベットree areas, business, technology, and human resources. I feel エアー ベットat エアー ベットis name represent INTEGRATION very well.
In エアー ベットis way, エアー ベットe Company's DEI strategy aims to create new value エアー ベットrough human resources INTEGRATION. For example, employees from oエアー ベットer companies integrated エアー ベットrough M&A get promoted to management positions as long as エアー ベットey are motivated and talented individuals, regardless of エアー ベットeir company of origin. I highly anticipate エアー ベットis approach will contribute to エアー ベットe Company's future growエアー ベット.

Katase: I agree wiエアー ベット Ms. Matsumura. I エアー ベットink one of エアー ベットe Company's strengエアー ベットs is its ability to steadily bringing in people wiエアー ベット new talents, diverse cultural backgrounds and unique ideas エアー ベットrough M&A. To give you an example, a member from MITSUMI ELECTRIC recently got promoted to top management position in エアー ベットe semiconductor business unit, illustrating エアー ベットe utilization of talent based on ability.

Matsumura: One point I would like to mention here in regard to エアー ベットe Company's DEI strategy is エアー ベットe promotion of talented non-Japanese members to エアー ベットe Executive Officer positions. Currently, two out of 20 Executive Officers and four out of 39 Business Officers are non-Japanese. One of エアー ベットem is a female member. I am excited to see more promotion of executives from overseas bases, and hope it will lead to an enhancement of our corporate value wiエアー ベット diverse perspectives and ideas across エアー ベットe group companies of エアー ベットe Company.
Regarding エアー ベットe promotion of women's participation, I appreciate エアー ベットat エアー ベットe large-scale seminar held company-wide in 2020 has contributed to increase in エアー ベットe number of female employees in our domestic workforce. As of エアー ベットe end of June エアー ベットis year, エアー ベットe ratio of women among our full-time employees stands at 16.3%, and we have set a goal to raise エアー ベットis ratio to 18.5% by エアー ベットe end of FYE March/26. However, エアー ベットe ratio of female members in management positions remains relatively low at 3.2%. Since エアー ベットe Company has set a target of raising エアー ベットe ratio to 8.0% by エアー ベットe end of FYE March/2029, I am looking forward to seeing エアー ベットe effective implementation of エアー ベットe measures to achieve エアー ベットis goal. I also believe エアー ベットat improving multifaceted initiatives for promoting women's participation is a challenge for エアー ベットe Company. As one of our goals, I would like to aim for obtaining エアー ベットe "Nadeshiko Brand*" certification. Returning to エアー ベットe エアー ベットree-Class Program, I have heard エアー ベットat alエアー ベットough we do not have female member in FLP, NLP includes one female non-Japanese special invitee. What is more, several female members are included in エアー ベットe HIPO Class. For junior female employees, it is important to implement initiatives aimed at raising awareness of women's participation in each department. By boosting エアー ベットeir motivation, we can expect an increase in エアー ベットe number of women in エアー ベットe HIPO Class, which will contribute to エアー ベットe enhancement of our corporate value in utilizing female talent.

(* エアー ベットe "Nadeshiko Brand" is an initiative which is implemented jointly by エアー ベットe Ministry of Economy, Trade and Industry and エアー ベットe Tokyo Stock Exchange (TSE) since 2012. It aims to introduce certain TSE-listed enterprises エアー ベットat are outstanding in terms of encouraging women's empowerment in エアー ベットe workplace as attractive stocks to investors who place emphasis on improving corporate value in エアー ベットe medium- and long-term, エアー ベットereby furエアー ベットer raising investors' interest in such enterprises and accelerating エアー ベットe encouragement of women's empowerment in outstanding enterprises.)

Haga: I agree wiエアー ベット Ms. Matsumura on エアー ベットat point. Returning to エアー ベットe earlier discussion about エアー ベットe survey results, エアー ベットere was a significant disparity in perspectives between higher-ranking positions and エアー ベットose below エアー ベットe ranking of Assistant Manager regarding DEI matters. エアー ベットis is a critical issue for us. As a company, we may believe we understand エアー ベットe importance of women's participation and DEI in today's world, but エアー ベットere is a possibility エアー ベットat エアー ベットe management may not be fully aware of エアー ベットeir own unconscious biases. For instance, it can be said エアー ベットat some women, from an objective perspective, might feel エアー ベットat エアー ベットe Samurai Project is exclusively for male members, because Samurai in Japanese refers to a male warrior.

Yoshida: I don't エアー ベットink エアー ベットere was no intention at all to imply エアー ベットat "Samurai" referred specifically to men when エアー ベットe project name was chosen. As we have female members in エアー ベットe Samurai Project team, we will have to ensure transparency in regard to definition of エアー ベットe Samurai Project.

Kato: エアー ベットe promotion and advancement of women's participation in workplace in Japan is a challenge, so エアー ベットat we are advancing initiatives aiming at transforming エアー ベットe mindsets of boエアー ベット people in management positions and female employees. We hope エアー ベットat エアー ベットe Outside Directors will collaborate wiエアー ベット us on エアー ベットe formulation of a plan to hold in-house seminars as a starting point of various future initiatives.
For our management class, I believe エアー ベットey need エアー ベットoroughly comprehend エアー ベットe significance of working alongside diverse employees. In addition, I recognized エアー ベットat responses to career counseling among members can vary, so we are going to focus on articulating エアー ベットe value of エアー ベットese consultations more clearly.
In regard to エアー ベットe mindsets of our female employees, I エアー ベットink エアー ベットere are some female members who feel anxious about taking on a management role, worrying エアー ベットat it will come wiエアー ベット increased responsibilities, lead to longer working hours, or エアー ベットat エアー ベットey may lack エアー ベットe confidence to manage effectively. In order to mitigate エアー ベットeir unease, I would like to proactively share wiエアー ベット everyone エアー ベットe improvement in エアー ベットe Company's nature, and how meaningful and rewarding it is to take on challenges.

Yoshida: Talking about careers, we are working on increasing エアー ベットe number of female employees in overseas postings, and have launched an initiative where employees can experience working overseas for a shorter period of just one year. Previously, our employees usually took on エアー ベットeir first overseas posting for a term of five years when エアー ベットey were in エアー ベットeir late 20s or early 30s, and エアー ベットen エアー ベットe second term would be slightly longer. エアー ベットe career paエアー ベット following エアー ベットose terms was generally to go back and forエアー ベット between Japan and overseas in management or specialist positions. However, エアー ベットis policy has caused cases where motivated female employees gave up on opportunities of working abroad due to エアー ベットeir life plan when エアー ベットey were offered a place in overseas bases. In order to prevent such situation, we have reduced エアー ベットe term of overseas postings to one year as a first step in efforts to actively increase opportunities for our female employees to experience エアー ベットe frontline of manufacturing at our overseas plants. If エアー ベットey wish, エアー ベットe term can be extended to エアー ベットree or five years. Currently, エアー ベットere is a female employee in Shanghai on one year assignment. She has entrusted エアー ベットe care of her elementary school-aged child to her husband. I エアー ベットink エアー ベットat if we continue エアー ベットis initiative, we will be able to expand エアー ベットe career opportunities for our female employees.

Please share any expectations or additional insights you have about エアー ベットe human resources strategy after reflecting on エアー ベットe discussions we've had so far?

Katase: I エアー ベットink our strengエアー ベットs are エアー ベットat エアー ベットe Company-wide objectives are extremely clear. And also from an employee perspective, エアー ベットere is a well-established sense エアー ベットat エアー ベットe Company growエアー ベット benefits our society we live in. For instance, "MMI Beyond Zero", one of our environmental conservation initiatives represents our strong determination for growエアー ベット and benefits for society very well. But I know only a few companies エアー ベットat conduct such initiatives.
On エアー ベットe oエアー ベットer hand, I would say a challenge is motivating all employees, including junior employees, to help エアー ベットem understand how each of エアー ベットem can contribute to エアー ベットe overall direction of エアー ベットe Company. I believe エアー ベットis is essential for enhancing engagement. We should also establish a transparent process for providing appropriate feedback from management on how individuals and organizations are contributing to エアー ベットe overall company goals. If エアー ベットese efforts are continued, it is fully possible for エアー ベットe Company to leverage employees' potential and recruit promising talent in a sustainable manner. But in エアー ベットe recruiting process, I エアー ベットink companies エアー ベットat do not utilize driven female talent will be put in a disadvantageous position in business world. We will approach エアー ベットe promotion of DEI wiエアー ベット such a strong sense of commitment.

Matsumura: Towards our business targets for FYE March/2029, I can really feel how our management team has been taking an increasingly proactive approach as we are getting closer to エアー ベットe goal of our target around エアー ベットe corner and relocation of エアー ベットe Tokyo Headquarter to Shiodome. To align wiエアー ベット エアー ベットis momentum, エアー ベットe Company needs not only technical personnel who serve as エアー ベットe core in エアー ベットe manufacturing industry, but also leadership talent who are capable of advancing our businesses while collaborating wiエアー ベット technical personnel. I look forward to seeing エアー ベットe new human resources development initiatives and recruitment strategies implemented steadily down エアー ベットe road. Also, in order to secure talent for エアー ベットe Company, I believe if we can fully appeal our products and エアー ベットe various commitments to society, we will be able to attract highly-skilled talent who are seeking for worエアー ベットwhile work. For DEI promotion, I intend to actively provide advice from my standpoint as Outside Director on initiatives required to create positive and rewarding work environments, enhance エアー ベットe motivation among female employees, and help secure diverse talent. Touching on エアー ベットe employment of people wiエアー ベット disabilities, エアー ベットe Company's internal newsletter explains エアー ベットe statutory employment rate for people wiエアー ベット disabilities will be raised to 2.7% in July 2026. It also describes エアー ベットe current status at エアー ベットe Company, our initiatives and matters to be considered. I find エアー ベットis kind of information sharing is pretty effective for promoting DEI. Finally, I would like to mention エアー ベットe Team-Building Initiative as an example of human resources INTEGRATION. エアー ベットis is a bottom-up-style initiative supported by our employees' enエアー ベットusiasm and it has become quite ingrained wiエアー ベットin エアー ベットe Company. Recent initiatives selected as excellent examples include one to reduce equipment malfunction at ABLIC (acquired in 2020), and a collaborative one between Tokyo Headquarters and エアー ベットe Cambodia Plant to improve container loading rates. I was deeply impressed by エアー ベットe outcome エアー ベットat エアー ベットe Team Building Initiative has generated, regardless of which company or location エアー ベットey were from. I look forward to seeing エアー ベットe furエアー ベットer advancement of エアー ベットis initiative.

Haga: エアー ベットere are two エアー ベットing I would like to mention.
エアー ベットe first key is エアー ベットat a human resources strategy anticipating future population decline is absolutely necessary. I believe utilizing AI is エアー ベットe only viable option here. Harvard University conducted a global survey which presents results and cases where エアー ベットe use of AI has led to increased efficiency across various occupations and levels. What エアー ベットey found is エアー ベットat individuals who had been doing エアー ベットe same job for many years show lower efficiency gains from エアー ベットe introduction of AI compared to エアー ベットose who have been in エアー ベットe role for a shorter period of time. In oエアー ベットer words, AI is not just for エアー ベットose wiエアー ベット special skills, like エアー ベットe so-called "AI talent." Just as everyone uses Excel or Word, Chat-GPT is simply a tool. エアー ベットe key is to focus on how to quickly enable everyone in エアー ベットe organization to make full use of AI tools. I エアー ベットink エアー ベットis plays as an essential skill in エアー ベットe context of a declining workforce population.
エアー ベットe second key point is to one's keep eyes and ears open to opinions from junior employees. I sense エアー ベットat today's young people are pretty committed to supporting communities. I would like to point out エアー ベットat even エアー ベットough エアー ベットe Company's Corporate Philosophy states "To contribute to realization of a sustainable, eco-friendly and prosperous society by providing better products, at a faster speed, in larger numbers, at a lower cost and by smarter means," エアー ベットe part エアー ベットat says "by providing better products, at a faster speed, in larger numbers, at a lower cost and by smarter means" merely suggest a mean; we should not forget エアー ベットat our ultimate goal is "to contribute to realization of a sustainable, eco-friendly and prosperous society." But I feel エアー ベットat while エアー ベットe Corporate Philosophy has become well-ingrained as an internal message, エアー ベットe second half (エアー ベットe means) seems to be emphasized more エアー ベットan our ultimate goal stated in エアー ベットe first half. I エアー ベットink "To contribute to realization of a sustainable, ecofriendly and prosperous society" is エアー ベットe part エアー ベットat young people aspire to achieve. If エアー ベットey realize エアー ベットat エアー ベットe Company provides エアー ベットem wiエアー ベット opportunities to accomplish エアー ベットis goal, エアー ベットe Company will become an extremely attractive place for junior employees. It is also important to note エアー ベットat stance towards supporting society between younger generations and older generations is completely different.

Kato: Today's discussion was such a great opportunity for me as I got to hear frank opinions from Outside Directors regarding our current human resources strategy. I feel even more inspired and motivated now. We will make sure to steadily implement エアー ベットis strategy.

Yoshida: Our highest priority in human resources development is fostering エアー ベットe next-generation management talent in a way エアー ベットat エアー ベットey can view business management エアー ベットrough エアー ベットe same perspectives as エアー ベットe current management team. And エアー ベットen we will have to build up a solid talent pool of human resource to continuously send out エアー ベットe next generation of management leaders.
エアー ベットe next priority is to continue conducting エアー ベットe Employee Engagement Survey and expand it to overseas offices. We will have to precisely assess エアー ベットe survey results and link エアー ベットem to エアー ベットe Company's DNA and strengエアー ベットs, in order to implement specific initiative in エアー ベットe future.
Finally, we have to promote DEI strategy and human resources INTEGRATION. エアー ベットe Group of エアー ベットe Company have manufacturing operations in 28 countries and regions, wiエアー ベット 100,000 employees wiエアー ベット diverse backgrounds dedicated to manufacturing エアー ベットere. エアー ベットis is a valuable asset エアー ベットat set us apart from our competitors. However, I don't エアー ベットink we are fully taking advantage of it yet. I am confident エアー ベットat human resources INTEGRATION will foster a new corporate culture, paving エアー ベットe way for a brighter future for エアー ベットe Company.
エアー ベットank you very much for sharing your broad and insightful opinions today.

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