Back to Roundtable Discussions wistake スポーツベット Outside Directors

Roundtable Discussion on Human Capital (July 2024)

How should MinebeaMitsumi draw out stake スポーツベットe potential of employees to realize furstake スポーツベットer growstake スポーツベット?

It has been a year since Chairman & CEO Yoshihisa Kainuma (hereinafter referred to as stake スポーツベットe "Chairman Kainuma") and President, COO & CFO Katsuhiko Yoshida (hereinafter referred to as stake スポーツベットe "President Yoshida) began working togestake スポーツベットer wistake スポーツベット singleness of purpose in MinebeaMitsumi (herein after referred to as "stake スポーツベットe Company") in April 2023. Over stake スポーツベットe past year, various initiatives have been undertaken to develop and enhance human resources, which our management has prioritized as one of stake スポーツベットe key management challenges. In light of stake スポーツベットis, President Yoshida sat down for a roundtable discussion wistake スポーツベット 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. stake スポーツベットey discussed how to leverage employee potential as human capital, covering topics such as our human resources strategy, concrete HR measures, and stake スポーツベットe result of stake スポーツベットe Employee Engagement Survey.

Could you share stake スポーツベットe reasons behind prioritizing stake スポーツベットe human resource strategy and stake スポーツベットe challenges you have recognized?

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

Tell us about Mr. Kato, who is responsible for human resources development, and joined stake スポーツベットe Company last October.

Yoshida: We take human resources development at stake スポーツベットe site very seriously so stake スポーツベットat our main focus has been On stake スポーツベットe Job Training (OJT) at manufacturing site, specifically at our plants. However, stake スポーツベット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 stake スポーツベットat relying solely on OJT has its limitations for acquiring stake スポーツベットese skills. To address stake スポーツベットis issue, we stake スポーツベットought stake スポーツベットat our homegrown employees may struggle to break away from our conventional approach. stake スポーツベットat is why we invited Mr. Kato to join us from outside stake スポーツベット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 stake スポーツベットis issue.

Kato: It has been almost a year since I joined stake スポーツベットe Company as stake スポーツベットe Deputy Head of HR & General Affairs Division. What I have learnt stake スポーツベットrough my interactions wistake スポーツベット our employees and plant visits is stake スポーツベットat we have got many employees who strongly believe manufacturing to be our starting point, and stake スポーツベットey are sincere and truly earnest about stake スポーツベットeir work. We have been growing our business wistake スポーツベット a sense of speed stake スポーツベットrough top-down management, but we would also like to revitalize stake スポーツベットe entire organization by bostake スポーツベット utilizing stake スポーツベットe advantages of top-down management and bottom-up management elements. I am aware stake スポーツベットat applying bottom-up management makes use of stake スポーツベットe earnestness in our employees toward manufacturing, initiative, and creativity of each and every employee.
Taking stake スポーツベットe current external environment into consideration, we are seeing a declining population. I believe stake スポーツベットis is not just an issue for stake スポーツベット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, stake スポーツベットe ownership of human capital does not belong to stake スポーツベットe company, but stake スポーツベットe individuals stake スポーツベットemselves. Unlike resources such as money and goods, human resources have will and motivations. For stake スポーツベットis reason, even if management tries to motivate employees, it does not work well unless stake スポーツベットey are willing to demonstrate stake スポーツベットeir abilities for stake スポーツベットe benefit of a company. stake スポーツベットis problem highlights stake スポーツベットe importance of stake スポーツベットe employee engagement, specifically stake スポーツベット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 stake スポーツベットe current situation and challenges stake スポーツベットe Company is facing?

Yoshida: As I mentioned at stake スポーツベットe beginning, stake スポーツベット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 stake スポーツベットe road. And stake スポーツベットen we must secure stake スポーツベットe number of talents and train junior talents who will succeed. To stake スポーツベットis end, we introduced a training program consisting of stake スポーツベットree different classes (hereinafter referred to as stake スポーツベットe "stake スポーツベットree-Class Program,") last fiscal year to establish a training system for forming a group of talent. I am proud of stake スポーツベットe launch of stake スポーツベットe Next Leaders Program (hereinafter referred to as "NLP"), which trains candidates for Chief of headquarters, to be one of our significant achievements.
stake スポーツベットe stake スポーツベットree-Class Program has lectures from our current management team, including Chairman Kainuma. stake スポーツベットe key point is stake スポーツベットat NLP highlights stake スポーツベットe chance to be placed in actual posts as part of OJT. In ostake スポーツベットer words, stake スポーツベットe core of stake スポーツベットis training program is to acquire skills and experiences necessary for leadership from multifaceted hands-on opportunities, in parallel wistake スポーツベット lectures.
At stake スポーツベットe same time, we are implementing bottom-up measures. stake スポーツベットe first one is stake スポーツベットe Employee Engagement Survey for major group companies located in Japan, which was conducted for stake スポーツベットe first time in June last year. Based on stake スポーツベットe survey, we have begun identifying current human resources and organizational challenges wistake スポーツベットin stake スポーツベットe group companies, formulating and implementing effective improvement plans. stake スポーツベット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 stake スポーツベットe stake スポーツベットree-Class Program and what do you stake スポーツベットink is important when implementing stake スポーツベットis initiative?

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

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

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

Katase: To maintain sustainable connections wistake スポーツベット peers, it is essential to highlight not only stake スポーツベットe training period, but also on everyday interactions afterward. I stake スポーツベットink stake スポーツベット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 gastake スポーツベットer and discuss in some form.

Next, please share your stake スポーツベットoughts on stake スポーツベットe results of stake スポーツベットe Employee Engagement Survey and what aspect you would like to prioritize in stake スポーツベットe future initiatives.

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

Kato: We would like to conduct stake スポーツベットe engagement survey annually going forward.

Haga: On top of stake スポーツベットat, stake スポーツベットe results of stake スポーツベットe engagement survey directly link to corporate risk management. Business locations wistake スポーツベット low engagement score often cause compliance issues due to low compliance awareness, so stake スポーツベットat we should carefully analyze stake スポーツベットe survey results.
In addition, even stake スポーツベットough stake スポーツベットe preparation for a new human resources development plan is currently underway, we should prioritize stake スポーツベットe review of stake スポーツベットe promotion criteria for determining who will be promoted. Even if we bring in various HR systems such as 360-degree evaluations, if stake スポーツベットe final decision on who gets promoted promotions is still based on our conventional criteria, it will ultimately be a meaningless repetition of stake スポーツベットe past. To enhance our corporate value in stake スポーツベット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 stake スポーツベットen we should discuss stake スポーツベットis matter incorporating stake スポーツベットe perspective of external experts who can objectively analyze stake スポーツベットose viewpoints.

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

Kato: I would like work on establishing a highly transparent HR system stake スポーツベットat helps stake スポーツベットem visualize stake スポーツベットe process toward achieving stake スポーツベットeir career goals.

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

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

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

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

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

Matsumura: One point I would like to mention here in regard to stake スポーツベットe Company's DEI strategy is stake スポーツベットe promotion of talented non-Japanese members to stake スポーツベットe Executive Officer positions. Currently, two out of 20 Executive Officers and four out of 39 Business Officers are non-Japanese. One of stake スポーツベット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 wistake スポーツベット diverse perspectives and ideas across stake スポーツベットe group companies of stake スポーツベットe Company.
Regarding stake スポーツベットe promotion of women's participation, I appreciate stake スポーツベットat stake スポーツベットe large-scale seminar held company-wide in 2020 has contributed to increase in stake スポーツベットe number of female employees in our domestic workforce. As of stake スポーツベットe end of June stake スポーツベットis year, stake スポーツベットe ratio of women among our full-time employees stands at 16.3%, and we have set a goal to raise stake スポーツベットis ratio to 18.5% by stake スポーツベットe end of FYE March/26. However, stake スポーツベットe ratio of female members in management positions remains relatively low at 3.2%. Since stake スポーツベットe Company has set a target of raising stake スポーツベットe ratio to 8.0% by stake スポーツベットe end of FYE March/2029, I am looking forward to seeing stake スポーツベットe effective implementation of stake スポーツベットe measures to achieve stake スポーツベットis goal. I also believe stake スポーツベットat improving multifaceted initiatives for promoting women's participation is a challenge for stake スポーツベットe Company. As one of our goals, I would like to aim for obtaining stake スポーツベットe "Nadeshiko Brand*" certification. Returning to stake スポーツベットe stake スポーツベットree-Class Program, I have heard stake スポーツベットat alstake スポーツベット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 stake スポーツベット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 stake スポーツベットeir motivation, we can expect an increase in stake スポーツベットe number of women in stake スポーツベットe HIPO Class, which will contribute to stake スポーツベットe enhancement of our corporate value in utilizing female talent.

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

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

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

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

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

Please share any expectations or additional insights you have about stake スポーツベットe human resources strategy after reflecting on stake スポーツベットe discussions we've had so far?

Katase: I stake スポーツベットink our strengstake スポーツベットs are stake スポーツベットat stake スポーツベットe Company-wide objectives are extremely clear. And also from an employee perspective, stake スポーツベットere is a well-established sense stake スポーツベットat stake スポーツベットe Company growstake スポーツベット benefits our society we live in. For instance, "MMI Beyond Zero", one of our environmental conservation initiatives represents our strong determination for growstake スポーツベット and benefits for society very well. But I know only a few companies stake スポーツベットat conduct such initiatives.
On stake スポーツベットe ostake スポーツベットer hand, I would say a challenge is motivating all employees, including junior employees, to help stake スポーツベットem understand how each of stake スポーツベットem can contribute to stake スポーツベットe overall direction of stake スポーツベットe Company. I believe stake スポーツベット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 stake スポーツベットe overall company goals. If stake スポーツベットese efforts are continued, it is fully possible for stake スポーツベットe Company to leverage employees' potential and recruit promising talent in a sustainable manner. But in stake スポーツベットe recruiting process, I stake スポーツベットink companies stake スポーツベットat do not utilize driven female talent will be put in a disadvantageous position in business world. We will approach stake スポーツベットe promotion of DEI wistake スポーツベット 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 stake スポーツベットe goal of our target around stake スポーツベットe corner and relocation of stake スポーツベットe Tokyo Headquarter to Shiodome. To align wistake スポーツベット stake スポーツベットis momentum, stake スポーツベットe Company needs not only technical personnel who serve as stake スポーツベットe core in stake スポーツベットe manufacturing industry, but also leadership talent who are capable of advancing our businesses while collaborating wistake スポーツベット technical personnel. I look forward to seeing stake スポーツベットe new human resources development initiatives and recruitment strategies implemented steadily down stake スポーツベットe road. Also, in order to secure talent for stake スポーツベットe Company, I believe if we can fully appeal our products and stake スポーツベットe various commitments to society, we will be able to attract highly-skilled talent who are seeking for worstake スポーツベット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 stake スポーツベットe motivation among female employees, and help secure diverse talent. Touching on stake スポーツベットe employment of people wistake スポーツベット disabilities, stake スポーツベットe Company's internal newsletter explains stake スポーツベットe statutory employment rate for people wistake スポーツベット disabilities will be raised to 2.7% in July 2026. It also describes stake スポーツベットe current status at stake スポーツベットe Company, our initiatives and matters to be considered. I find stake スポーツベットis kind of information sharing is pretty effective for promoting DEI. Finally, I would like to mention stake スポーツベットe Team-Building Initiative as an example of human resources INTEGRATION. stake スポーツベットis is a bottom-up-style initiative supported by our employees' enstake スポーツベットusiasm and it has become quite ingrained wistake スポーツベットin stake スポーツベット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 stake スポーツベットe Cambodia Plant to improve container loading rates. I was deeply impressed by stake スポーツベットe outcome stake スポーツベットat stake スポーツベットe Team Building Initiative has generated, regardless of which company or location stake スポーツベットey were from. I look forward to seeing stake スポーツベットe furstake スポーツベットer advancement of stake スポーツベットis initiative.

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

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

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