◆Portfolio for core positions

In FY2023, the Company comprehensively revised the objectives, details, and processes of succession planning for executives and general managers (core positions), laying the groundwork for building a HR portfolio for senior management. We clarified the job descriptions for executive and general manager positions and the fulfillment rate of succession candidates, and are implementing measures (recruitment, deployment, HR development) to close any gaps.

◆Portfolio for specialists and other personnel contributing to management and business strategies

To drive the transformation of the business portfolio under the new medium-term management plan that began in FY2024, we will collaborate with business units to develop a HR portfolio for personnel that contribute to management and business strategies, including the necessary specialists, and examine and implement measures to acquire needed talent with an eye on optimizing the portfolio.

For executive officer succession plans, after each executive officer comes up with a succession plan, it is vetted through a three-way discussion with the CEO and the CHRO. The succession plan is then updated through discussions at the Group Human Resource/D&I Committee. In FY2023, the successor candidate fulfillment rate was 74%. At the Group Human Resource/D&I Committee, discussions are also held about the strategic deployment of candidates in core positions within the succession plan, and then these candidates are groomed at an accelerated pace until they are ready to assume their roles. After general managers formulate their succession plans, the plans are brushed up by their respective executive officers. This is followed by discussions in human resource meetings with the CHRO and executive officers of each business. These discussions focus on strategic deployments and personalized training for the development of succession candidates.

The Teijin Group is implementing the following programs to cultivate the next generation of management.

◆STRETCH.advanced

Through the STRETCH (Strategic Executive Team Challenge) program, we seek to cultivate the next generation of management. To date, we have selected outstanding talent in the two tiers of STRETCH I and STRETCH II and sought to develop such talent through a standardized training program. In FY2024, we reorganized STRETCH 1 and STRETCH 2 to commence STRETCH.advanced, an improved program that adopts a more comprehensive and practical approach. The new program comprises three phases: assessment, review, and skill development. Participants undergo training courses tailored to their areas of expertise identified during the assessment phase. In this way, STRETCH.advanced seeks to develop talent that supports succession plans for executive officers.

◆JuMP

JuMP (Junior Management Program) is a program to foster mid-level "core" candidate employees who are selected on a cross-organizational basis. The program offers a course for Japan and one for overseas, which are held alternately each year. In the most recent years of the program, 22 employees participated in the course in Japan, and 20 participated in the overseas course. Looking ahead, we will give consideration to integrating these courses with the aim of rolling out a revised program to develop talent on a global basis.

Encouraging employees to take ownership of their own careers is the basis of a healthy relationship between a company and its employees. Efforts by employees to increase their in-house and market competitiveness ultimately benefit the company in terms of enhancing corporate value. In addition, during Job Posting Week, which commenced in FY2023, divisions offering positions introduced the kind of work they do to the entire Company, thereby providing an opportunity for employees to understand greater career opportunities in-house. While career formation is the responsibility of the individual, the Company also has a responsibility to provide maximum support for employees to form their own careers.

The Teijin Group promotes and encourages self-development based on the independent study of each and every employee and coordinates on-the-job training, a job rotation/appointment system, and other training programs as part of a systematic approach to developing Group human resources.

People development results (FY2023)

• *Two companies in Japan: Teijin Limited, Teijin Pharma Limited
• *Limited to training under the jurisdiction of the Human Resources Development Section

◆Optional online training

With more than 8,000 online courses to choose from, employees can pursue courses that help them reskill and upskill based on their own interests and areas for improvement. Courses on recent topics and sessions led by industry leaders are updated on a daily basis. We introduced these online courses in August 2022, and since then we have continued to see a utilization rate of 95% or more each month. As of June 2024, the program has been used a total of over 3,000 times by employees.

◆Leadership training program EaGLES

EaGLES is the name of the Teijin Group's shared leadership training program launched in FY2011.EaGLES training features content that helps all employees in managerial positions in the Teijin Group to acquire leadership experience and learn the Group's values, management policies, and history. As such, all employees in Japan and overseas requiring these skills and knowledge are sequentially completing this training program every year.

◆Overseas practical training program

In FY2019, we launched the Overseas Practical Training Program, which aims to enable young employees to gain practical experience at overseas Group companies, hone their international awareness, and build interpersonal networks. In FY2023, a total of four people participated in this program, including not only employees dispatched from Japan to overseas locations but also employees dispatched from overseas (United States and Germany) to Japan.

◆DX training

As a foundation for promoting digital transformation (DX), we offer DX training to all employees to enhance their knowledge and awareness. We have been implementing DX training for employees across the globe since August 2023, with a total of roughly 8,000 employees participating to date (approx. 6,000 in Japan and 2,000 overseas). From FY2024, we began offering advanced courses and courses for managers.

In 2000, the Teijin Group established an organization specializing in promoting the advancement of women. Since then, we have rolled out a broad range of initiatives from both a structural perspective, such as enhancing support systems for balancing childcare and work, and a cultural perspective, which includes developing women's awareness toward their careers, promoting training to address unconscious bias, and creating internal and external networking opportunities. Under the new action plan started in FY2024, we are working to build a pipeline for female executives and increase the number of women playing an active role as department or section managers. To that end, we established targets for the ratio of female leaders in each business unit and are working to systematically cultivate and appoint these leaders in our business units.

We are focusing our efforts on cultivating and promoting female leaders. In Japan, we provide support so that women can work in an authentic and sustainable manner at any life stage. This support includes efforts to strengthen the recruitment of women, provide assistance to balance work with childcare, and holding seminars to enhance health literacy. In addition, we are bolstering our mentoring and other career support programs and offering leadership training to women across all businesses. In FY2024, we began a rank-based, cross-industry mentoring program on a trial basis so that women can demonstrate leadership in their own unique way. By setting in motion a plan-do-check-action (PDCA) cycle in which female employees receive various advice from mentors at other companies and apply such advice in their actual work, we help our female employees grow as leaders. Additionally, we create opportunities for interaction between participants in the program, thereby helping them build networks both within and outside the Group.

Furthermore, as part of our social contribution activities, we have been participating in the Science and Engineering Challenge (Riko-Challe), an initiative led by the Cabinet Office, since FY2021. This program is designed to encourage female students to pursue careers in STEM fields. In August 2024, female researchers at our Osaka Head Office held a bread-baking event, "Riko-Challe--Discovering the Relationship between Bread and Science and Uncovering the Secret to Delicious Bread." At this event, we introduced job opportunities such as recipe development using the products of the Biolier business division of the Company. Also, by entrusting young employees in STEM fields for everything from planning to management of events and other initiatives, we are building networks both within and outside the Group.

Trend in number of female managers

• *Data as of March 31 of each fiscal year
• *Four major subsidiaries in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., and Infocom Corporation
• *Percentage of female managers: Percentage of female employees in management positions out of all employees in management positions

Trend in number of employees taking childcare leave by gender

The Teijin Group is working to foster a corporate culture in which all employees, regardless of gender, can make use of childcare support systems. In FY2022, Teijin Limited revised its paid leave systems to enable employees to use annual leave they have accumulated during childcare leave, allowing for a maximum of 55 paid leave days for both men and women. We also communicated a message from the CEO encouraging male employees to take childcare leave and made use of our corporate newsletter and intranet to share experiences of men who have taken this leave. As a result, the percentage of male employees taking childcare leave in FY2023 was 83.7%. The average number of days taken for paid leave increased to 22, up from seven days in FY2022. Additionally, the percentage of male employees taking childcare leave at our four major subsidiaries in Japan was 75%.

• *Number of employees taking childcare leave includes employees taking paid leave for the purpose of childcare.
• *Four major subsidiaries in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., and Infocom Corporation

Gender wage gap

Although the Teijin Group does not differentiate wages between men and women in the same rank or position, a survey revealed the following results regarding the gender wage gap (results are for the four major subsidiaries in Japan). Aside from certain instances, the overall wage gap between male and female employees shrunk compared to previous fiscal years.

The reasons for the gender wage gap are as follows.

1. 1.There is a higher percentage of men in high-paying positions, and this contributes to the existence of the gender wage gap.
2. 2.There is a gap in the number of benefits provided to men and women, and this is also a reason for the wage gap. Benefits such as family and housing allowances provided to the heads of households, as well as solo assignment allowances and travel expenses to return home for employees on solo assignments, are provided predominately to men, with women recipients only accounting for 7% of total recipients of these allowances.
3. 3.The fact that a fewer number of male employees take time off or work shorter hours in order to raise children or provide nursing care is another factor behind the gender wage gap. The percentage of male employees utilizing shorter hours for childcare and nursing care at the Company was 10% and 0%, respectively.

Based on a thorough understanding of the above reasons for the existence of the gender wage gap, we will continue to work to reduce the gap through such efforts as systematically developing and promoting female managers, revising human resource systems, and reforming awareness of gender roles.

For employees with disabilities, our special subsidiary Teijin Soleil Co., Ltd. operates agricultural businesses focused on vegetables, roses, and phalaenopsis (a kind of orchid), as well as office support services. We aim to create employment opportunities for people with disabilities based on their unique situation. Teijin Soleil aims to ensure that employees with disabilities can demonstrate their own talent in agriculture so that they can not only make a valuable contribution to the company and its business but also feel satisfied with and proud of their own status as a working member of society. Teijin Soleil is working to expand sales with the aim of becoming profitable at the operating level in the agricultural business. As of March 2024, the employment rate for persons with disabilities at Teijin Limited, Teijin Pharma Limited, Teijin Healthcare Limited, and Teijin Soleil Co., Ltd. was a combined 2.62%, exceeding the legal requirement of 2.3% (which will increase to 2.5% from April 2024). In FY2021, the company received the Challenge Award at the Noufuku Award, a first for a special subsidiary.

To measure the effectiveness of measures to empower human resources, a central aspect of our human resource strategy, we have established indicators related to the diversity of executive officers and managers, as well as employee engagement. Through systematic training and promotions, we aim to improve diversity among executive officers and managers, and by setting and carrying out engagement improvement actions, we strive to achieve our targets for enhancing employee engagement.

Diversity-Related KPI Targets

Engagement-Related KPI Target

1. *1Board of Directors, statutory auditors, and Group corporate officers
2. *2Global data, including Japan
3. *3Based on survey performed in September concerning the previous year

In FY2019, Teijin and Teijin Pharma introduced telework programs that allow employees to work outside the office even in the absence of a reason such as childcare or family care. Since FY2020, we have been expanding these telework programs as a temporary measure to prevent the spread of COVID-19 infections. However, at the moment, we have established limits on teleworking hours for each business unit based on the type of work done, as we continue to strive to realize flexible and diverse workstyles. Looking ahead, we will effectively combine the telework system with actual face-to-face communication in the workplace to enhance the productivity of the organization while increasing workstyle flexibility. By doing so, we will work to enhance this system so as to ensure that all employees can demonstrate their capabilities to the greatest extent possible.

For some time now, Group companies in Japan have been utilizing a system that requires applying for overtime in advance and actively promoting no-overtime days. In FY2023, the four major subsidiaries^* in Japan reported an average overtime of 14.4 hours per month (an increase of 0.3 hours compared with FY2022). The utilization of annual paid holidays was 80% (a decrease of two percentage points compared with FY2022). In FY2024, we will strive to improve results as compared with the previous fiscal year, with the aim of reducing actual working hours. In order to realize appropriate working hours, we are using IT tools and external consultants to conduct surveys on work and work visualization and exerting all efforts to comprehensively revise tasks (IT utilization, standardization of operations, making meetings efficient, etc.). As a specific measure, we are prioritizing the development of robotic process automation (RPA) to promote the reduction of working hours and the optimization and equalization of labor loads by automating and improving the efficiency of operations.

1. *Four major subsidiaries in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., and Infocom Corporation

①Support for balancing work with childcare

Since establishing the Office to Promote Women's Advancement in 2000, we have continued to promote efforts to help our employees balance their work with childcare. Specifically, we have been working to design flexible and diverse systems that make it easier for employees, regardless of gender, to work while raising children, including by enabling the reduced hours work system to be used until the end of the fiscal year in which an employee's child reaches third grade in elementary school, offering wage compensation during childcare leave by allowing the utilization of accumulated paid leave, and providing allowances for babysitter expenses. We have also created manuals for the management of such systems and have worked to promote understanding in the workplace, including among supervisors, and ensure smooth communication. In our action plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children, which was updated in FY2024, we lay out the following targets as we align our focus on creating environments where each employee can work with greater enthusiasm while balancing their work with childcare.

Furthermore, in preparation for instances where a parent, primarily in urban areas, cannot find a daycare center due to lack of availability and therefore unable to return to work when planned, we provide support for employees on childcare leave so they can find alternative daycare facilities. By providing a special assistant to such employees, we ensure that they can return to work more smoothly.

②Support for balancing work with nursing care

Cases of employees providing nursing care for their parents are expected to increase in the future, as Japan's declining birthrate and aging population progress. Ensuring that these employees can balance work with providing nursing care for their family members has become an important issue. To that end, we have established systems that give consideration to the unpredictable nature of nursing care in terms of the necessary time and duration. For example, employees can make use of the reduced working hours system as many times as they need as long as they are providing nursing care. In this way, we have set up an environment where employees can continue to work with peace of mind while providing nursing care. We also provide support from a cultural perspective, including holding seminars to promote knowledge of nursing care and understanding of our nursing care systems, setting up a consultation desk that employees can seek consultation on issues they face in providing nursing care, and launching Wakaru Kaigo Biz, a service that provides information on nursing care that can be viewed at any time.

③Support for balancing work with personal illness

We have introduced a reduced working hours system for employees dealing with a personal illness. Through this system and other efforts, we support employees in balancing work and medical treatment, including employees diagnosed with cancer and those undergoing fertility treatments. In FY2022, we held a seminar on balancing work and cancer treatment for not only employees diagnosed with the disease but also their supervisors and families. Furthermore, although separate from personal illnesses, we held a seminar on women's health in FY2023, as we did in FY2022, with the aim of having male employees better understand women's health issues, such as the physical and emotional uneasiness that occurs during menstruation. We also are working to enhance literacy of women's health within our training for newly appointed managers.

①System allowing employees to take leave when spouse is transferred overseas

At Teijin, we have a system that allows employees to take up to three years of leave in the event that their spouse is transferred overseas for work. This system commenced in FY2014, and as of March 31, 2024, a total of 28 employees have utilized the system, with 17 of those returning to work afterward.

②Paid leave for volunteer activities

From the perspective of promotion volunteer activities across the Teijin Group, Teijin and Teijin Pharma have introduced a system that enables employees to take paid leave for the purpose of volunteering. As of March 31, 2024, a total of 38 employees were on leave for volunteer activities.