Society

Human Resources Basic Policy

At our Board of Directors meeting on April 21, 2021, we established the following " Funai Soken Group Human Resources Basic Policy" in order to disclose our approach to "human resources," one of our Materiality (Key Issues) , to all stakeholders .

Basic Concepts

Funai Soken Group recognizes the importance of "human resources" as a crucial source of value creation for realizing a sustainable society . We will make securing and educating outstanding human resources our top priority, and contribute to Society by providing value.

Human Resources Basic Policy

1. Diversity & Inclusion

   In order to cultivate human resources who can continuously create value increasingly diverse society , we aim to contribute to Society through our business activities while respecting each individual's background, including nationality, gender, and age, and acknowledging diverse ways of thinking.

2. Creating Growth Opportunities

   To create a better society and to development employees who can adapt to the changes demanded by the times, we will enhance our education and training system, create even more opportunities for growth, and contribute to the growth of a sustainable society .

3. Improving Employee Engagement

   We aim to be a group that fosters employee engagement, where employees grow together through their work, share values, and enhance teamwork within the organization, thereby promoting a positive cycle in business activities and ultimately contributing to the resolution of social challenges .

4. Health and Productivity Management

   We will promote diversification of employees' working hours and locations, while fostering a support system that enables them to work in a way that is fulfilling both physically and mentally, in order to achieve high-quality work, enhance customer satisfaction, and create value for Society .

5. Information Disclosure

   We will strive to Information Disclosure necessary for our engagement with Society regarding the Initiatives of our basic policy on human resources.

6. Compliance

   In our relationships with all stakeholders through our business activities, we will strive to comply with all relevant laws and regulations, and to act fairly in in accordance with social norms .

Date Established : April 21, 2021

Funai Soken Holdings Inc.

Takayuki Nakatani, President

Human Resources Policy (Chinese)

Human Resource Management

Our group believes that the success of diverse talent is essential for sustainable growth. Therefore, we have set "proactive investment in human resources" and "instillation of the group purpose" as key policies in our management plan, and we will strive to further enhance our human capital, which is the source of our group's growth.

Human Resources Strategy

We aim to increase ELTV (Employee Life Time Value) by continuing to expand the number of consultants and increasing productivity and expected length of service per person.

Three drivers of human capital management

Main Human Capital Policies

	KPI	Targets
Recruitment	Active recruitment of consultant talent that directly impacts performance.	Number of consultants 1,400 in 2028
Talent Development	Training time per employee	Implementation of training exceeding 100 hours per year
Retention & Empowerment	Improving the compensation levels of consultants	Consultant at Funai Consulting Inc. Average annual salary in 2030: 10 million yen (*1) (7.8 million yen in 2024)
	female manager ratio	25% in 2025, 30% in 2030 ( 24.1% in 2024 )

Human Resources recruitment

We are actively promoting recruitment measures to reach our target of 2,000 employees by 2028. Specifically, we are strengthening recruitment new graduates to increase the number of consultants in upstream processes, strengthening Mid-Career Recruitment of experienced professionals in high-growth areas such as AX/DX and highly specialized areas such as M&A, and strengthening recruitment of management personnel to enhance the group's capabilities.

New graduate recruitment

In addition to industry-specific recruitment activities, we will strengthen our recruitment pool, differentiate ourselves from competitors, and maintain a strong hold on the market by approaching student demographics that we previously had little contact with from an early stage through new Initiatives such as group-wide DX recruitment events and DX internships (workshops, networking events).

Internship

Our group offers internships as part of recruitment for new graduates.

We have been offering internships since 2012, including short-term programs lasting three days or a week, as well as long-term programs lasting three months or more. The purpose is to help students who are about to start their job search to gain a concrete understanding of the work content and experience the workplace atmosphere.

A total of 4,474 students who are eligible for new graduate recruitment in 2027 participated in the internship program held in 2025.

Click here for details

Mid-Career Recruitment

We are focused on securing highly skilled professionals who can immediately contribute to our team. We are expanding our recruitment channels and shortening the selection process to ensure smooth recruitment .

In particular, we have created a dedicated webpage to strengthen recruitment for AX/DX personnel, who are essential for improving the group's future performance.

Furthermore, we view the increasing recruitment of alumni in recent years as an effective means of securing highly skilled professionals who can immediately contribute to our team, and we are actively working to recruitment diverse professional talent.

development and success

Our group's basic human resources policy emphasizes " Creating Growth Opportunities ," and we are working to enhance our education and training system to create a better society and to development employees who can adapt to the changes demanded by the times. We are further expanding our educational programs and increasing our investment in education, including the early development of young employees and the acquisition of digital skills that lead to increased productivity.

development program

We development human resources by operating a variety of training programs tailored to different levels (new employees, mid-career hires, middle management, executives, etc.), skills, and themes. We focus on ensuring that employees acquire the necessary skills at the right time, and that they can immediately apply them in their work by incorporating many real-world examples and workshops, rather than just learning theory through lectures.

Furthermore, in the consulting field, we have compiled a list of DX skills necessary to achieve results and organized educational content corresponding to each skill. By linking this with the promotion program, we aim to improve the skills of each employee and systematically development DX talent. In addition, some members receive DX training utilizing external content with the aim of further acquiring specialized skills.

DX Training

To development and integrate DX (Digital Transformation) talent, each company implements programs such as training sessions, study groups, and e-learning.

Funai Research Institute offers 22 DX training courses as part of its "DX Enablement" program. The program systematizes the skills necessary to achieve results with digital technologies and DX, aiming to ensure skill acquisition. By linking the acquisition status of each skill with actual results, the program continuously evolves the learning content through a PDCA cycle.

Consulting Training

We offer a total of 1,014 training courses as part of our "Consulting Enablement" program. Our focus is on practical application, aiming to equip participants with skills that translate into tangible results—improving our clients' business performance. The training emphasizes hands-on practice, including input using educational content, output in real-world work situations, and KPI review based on performance.

Training hours per employee ( FY results)

• 75.6 hours

*The above figures are calculated by adding up the time spent participating in training, accompanying new graduate consultants, and attending management policy presentations, with the number of consolidated employees as the denominator.

On-the-job training (OJT) through accompanying senior employees on sales calls.

Our group is committed to enhancing development programs and focusing on on-the-job training (especially sales shadowing) in human resource development . New graduate consultants in their first year gain practical knowledge by experiencing sales shadowing, learning key points, skills, and know-how related to sales activities.

Source: Domestic Consulting Job Hunting Support Channel by Funai Research Institute

Strengthening the management layer

Since organizational leadership and member development by managers are directly linked to achieving KGIs and corporate growth, we will restructure our management programs.

Promotion Program

A development program for employees aiming for promotion in terms of rank and position.

You will acquire the required roles, skills, and mindset through lectures, e-learning, and workshops.

Executive training

We are deepening the knowledge of existing managers by implementing programs in various formats.

Examples: Study group / Executive review / Thematic committee / Vision meeting

evaluation

Our group's human resources system consists mainly of three systems: a grading system, an evaluation system, and compensation system . It embodies our human resource strategy in order to achieve our group purpose.

Our grading system clarifies the roles and growth steps expected of each employee, providing diverse career paths.

Our evaluation system emphasizes not only results but also the processes and actions that lead to those results (such as practicing the Funai Way). Through fair and multifaceted evaluations and thorough feedback, we strongly promote employee growth.

The evaluation results are appropriately reflected in compensation, ensuring a fair distribution of rewards commensurate with contributions. Opportunities for career track transfers and departmental transfers are also provided, allowing employees to build their careers flexibly in line with their vision and life stage.

Throughout these systems, Funai Soken Group aims to achieve both the maximization of individual "lifetime value" and the sustainable growth of the company by enabling each employee to demonstrate their abilities, grow, and contribute to the company in diverse ways. The personnel system is continuously improved, and optimization is constantly pursued.

Grading system: Diverse career paths and steps for growth

Funai Soken Group 's grading system is a system that classifies the abilities, duties, and roles expected of employees. It defines the roles and abilities required for each course and grade, as well as the criteria and regulations for career steps such as promotion, in order to enable further individual growth.

The ranks are classified into six levels (may differ in some courses) based on expected abilities, contributions, and achievements. Authority, responsibilities, and compensation are determined according to the required role and work performance capabilities.

Funai Soken Group offers a variety of career advancement courses tailored to different business areas and roles. These include management courses for leading organizations, specialist courses for pursuing individual expertise, consulting development courses, business development courses, corporate professional courses, and corporate staff courses, which are available at each group company.

These courses aim to help employees achieve a " sustainable growth career" that allows them to enrich both their work and personal lives and continue to thrive. Furthermore, the system is designed to allow employees to choose their career paths in line with changes in their life stage and personal vision. This is based on the philosophy of supporting a "jungle gym" type of career development, where employees can move flexibly across and upward ladder rather than a "ladder" type where they only move up or down.

Evaluation System: Measuring Growth and Fair Contribution

The evaluation system is a mechanism for conducting performance appraisals based on the employee profile defined in the grading system. Its purpose is to assess performance against goals set over a certain period, promoting goal achievement and growth through those achievements. It also plays a role in fairly and equitably evaluating individual achievements in accordance with diverse ways of contributing, and reflecting these in compensation. Evaluation is not merely about determining compensation; it is also a platform for fostering growth through development , process management, and feedback.

The evaluation cycle varies depending on the company and course, but in most cases, it operates on an annual cycle. The cycle of "goal setting," "task execution," and "evaluation/feedback" is implemented throughout the year.

The evaluation process is based on a multi-stage evaluation system that begins with self-evaluation, followed by supervisor evaluation, inter-departmental coordination, and evaluation meetings before the final decision is made. For management-level personnel, 360-degree evaluations are also introduced to provide a more multifaceted perspective. Furthermore, customer feedback is taken into consideration to enhance the objectivity of the evaluation. Through these measures, we aim to correct biases in evaluations from multiple perspectives and achieve evaluations that are highly satisfactory. The final evaluation results are communicated from supervisors to subordinates through feedback meetings, ensuring transparency and facilitating discussions on growth and problem-solving, including appreciation for the current period, expectations for the next period, and specific action plans.

In addition to the above, we provide meticulous support for each individual's growth by conducting regular one-on-one meetings and providing continuous feedback through daily work.

Details of evaluation criteria

evaluation criteria are set according to the company's goals and the individual's role. The main criteria include the following:

Outcomes and Objectives

• Achievement status of individual goals
• Achievement status of departmental goals
• Development of new solutions and businesses
• Number of seminar attendees
• Number of Management Workshops members
• Consulting quality (support retention rate, NPS)
• Turnover rate

Process objectives

The process of achieving the results and goals
We will evaluate the specific action plan.

Behavioral goals / competencies

• Understanding and practicing the Funai Way
• Self-management
• Teamwork
• Strict adherence to compliance
• Business etiquette

We evaluate not only results, but also the processes and behavioral guidelines used to achieve those results. In particular, we place importance on the practice of values included in the Funai Way, such as Adventureship ( Converting change into momentum and contributing to company-wide activities), Empathy (supporting customers and departmental managers), and Integrity (being honest and keeping promises). At Funai Consulting Shanghai Inc. , the fulfillment of the values of "loving the company, loving the work, and loving colleagues" is also included in the evaluation criteria.

Compensation system: Fair distribution based on contributions

The compensation system defines compensation based on job grade and performance, and plays a role in encouraging desirable behavior. Compensation consists of "variable pay" through bonuses and "fixed pay" through base salary and allowances.

Monthly salary

Monthly salary is determined by your rank, pay grade, and various allowances. Your pay grade changes based on your performance evaluation (personnel assessment and total evaluation score), and this is reflected in your monthly salary for the following year.

bonus

Bonuses are paid based on company performance and individual performance evaluations. Summer bonuses are often based on company performance (performance coefficient) and base salary, while winter bonuses reflect not only company performance but also individual performance evaluations and assessments.

Various allowances

Job allowance / Position allowance	Paid according to grade and course.
Qualification allowance	Support for obtaining certain qualifications
Family allowance	Provided if you have dependents.
Commuting allowance	Reimbursement of actual expenses
Overtime pay and late-night work pay	Paid for overtime work
Adjustment allowance	Payment due to changes in the wage system, etc.

Systems that support diverse working styles and career development

At Funai Soken Group , we have established systems to support diverse working styles and career development in order to realize a " sustainable growth career" for every employee .

career track transfers system

career track transfers system allows employees to move between different career tracks, such as between management and professional tracks, depending on their individual aspirations, abilities, or the organization's needs. career track transfers process involves the employee expressing their intention, a recommendation from their supervisor, and deliberation and approval by executives. Monthly salaries are adjusted based on the salary of the previous career track, according to the salary scale of the new career track.

Internal transfer system

Furthermore, Internal transfer system (transit system, job offer system, and personnel transfer) is in place, allowing employees to change departments without changing their career path. This system aims to enhance individual value and improve management skills by allowing employees to experience multiple fields according to their preferences. Under the transit system, employees can request a transfer to their desired department, and under the job offer system, transfers are possible by applying to internal job postings. In these systems as well, there is a mechanism in place to consult directly with the human resources department without going through a supervisor.

Stork budget system

Furthermore, as a system to support life events, there is the " Stork budget system ," which allows employees to transfer their already determined individual performance targets to the company or department when they take maternity or childcare leave due to pregnancy or childbirth of themselves or their spouse. This system is designed to ensure that employees can face life events with peace of mind.

Career development philosophy

At Funai Soken Group , we have established systems to support diverse working styles and career development in order to realize a " sustainable growth career" for every employee .

From "ladder type" to "jungle gym type"

At Funai Soken Group , we support a "jungle gym" type of career development, which allows for free movement in all directions, rather than the traditional "ladder" type of career that only moves flexibly across and upward . This allows employees to flexibly choose their careers according to their life stage and aspirations.

For example, employees can choose from a variety of career paths, such as switching from a management track to a specialist track, or transferring to a different department. This reflects Funai Soken Group 's human resources philosophy, which aims to achieve both the maximization of an individual's "lifetime value" and the sustainable growth of the company.

Balancing work and personal life

Achieving a " sustainable growth career" requires a fulfilling work-life balance. At Funai Soken Group we prioritize creating an environment where employees can thrive long-term by offering work options tailored to their life events.

Continuous growth opportunities

We support our employees' continuous growth through regular feedback via our performance evaluation system and the provision of diverse career paths. This is based on the belief that individual growth leads to company growth.

Shared Values

We emphasize Shared Values , exemplified by the Funai Way, and reflect this in our performance evaluations, thereby fostering organizational culture and clarifying individual behavioral guidelines.

Employee retention

To ensure that all employees feel a sense of fulfillment and continue to thrive, we are promoting the widespread understanding and acceptance of our management policies and group purpose, thereby improving employee engagement and expanding group synergies.

Initiatives to increase the expected length of service

We have identified "expanding the expected length of service" as one of the drivers of human capital management within our group, and we are working to improve our engagement score (organizational SANBŌ score).

Engagement score (organizational SANBŌ score)

• ・Revitalizing communication by creating a unified office at the Group headquarters
• - Sustainable improvement of compensation levels
• • Promoting diverse and flexible work styles ( flextime, remote work, and career track transfers )
• - Development of evaluation and personnel systems that support diverse career paths, etc.

Initiatives to promote group purpose in order to improve employee engagement

Purpose Town Hall Meeting

Group CEO and the heads of each group company directly communicate the background and intentions behind the setting of the group purpose to employees, and exchange opinions through Q&A sessions with employees.

Greeting Campaign

Volunteers from each company stand at the office entrance during employees' commuting hours, greeting and speaking to them. By reviving and establishing a "culture of valuing greetings" that had temporarily weakened during the COVID-19 pandemic, new forms of communication and synergy are being created.

Initiatives to Internalize the Founder's Spirit

To understand the Founder's Spirit, next-generation leaders selected from each company participate in workshops. Through visits to the Founder's Memorial Hall and lectures by philosophy ambassadors , they learn about the founder's spirit that should be continuously passed down within their organizations.

Diversity & Inclusion

We believe that diversity management, including Women's Empowerment , is essential for creating the foundation necessary for innovation, value creation, and productivity improvement.
We will create an environment where employees can continue to work with enthusiasm and actively promote Diversity & Inclusion.

Women's Empowerment

Funai Soken Group is promoting various Initiatives to achieve its targets for the percentage of female employees and female manager ratio by 2030.

As of 2025, female employees account for 38.6% of the total number of consolidated employees. Non-regular employees (contract employees, temporary staff, etc.) account for 6.3% of the total number of consolidated employees.

Overview of the 2025 FY

In order to realize career development and value creation that leverages diverse values, we have actively recruitment women and strengthened Women's Empowerment . As a result, the percentage of female employees has increased to 38.6%, and female manager ratio has increased to 27.2%.

・Value Creation and Social Responsibility

In our consulting division, where female manager ratio is high, we have observed improvements in employee satisfaction and productivity. We consider this an essential element for sustainable growth. In addition to promoting these improvements within our own company, we will further focus on recruitment and supporting the success of outstanding talent in order to contribute to the development of our client companies' entire industries through our consulting services.

Looking at ESG data on the gender wage gap

Key Points and Specific Initiatives to Promote Women's Participation in the Workforce

Human resources are our greatest asset: Aiming for a 30% female manager ratio

1. female manager ratio (Target Achieved in Previous Medium-Term Management Plan)

   In our previous medium-term management plan ( FY ), we achieved our non-financial target of having female manager ratio of "25% or more." The actual figure for FY was 27.5%, a steady improvement from FY (23.8%).
   Furthermore, the percentage of female directors is 33.3% (as of FY 2025), indicating increasing diversity within the management team. We are progressively expanding the appointment of women to positions responsible for decision-making.

2. Targets for sustainable corporate value enhancement

   As one of our Sustainability goals, we aim to maintain and achieve the following levels by 2030: "30% or more female manager ratio ," "40% or more female employees," and "30% or more female directors." We are steadily promoting the advancement and promotion of women while proceeding with a plan to increase the number of consultants, who are directly linked to our performance, by an average of approximately 10% per year.

Career development support for young professionals; CareerNavi CAFÉ

"Career Navi CAFE," conducted by Funai Consulting Inc. , is a workshop-style program where senior female employees who serve as role models are invited to share their experiences in career development and learn how to create career and life plans. It is an in-house training program held three times a year for all female employees in their first or second year at the company.

Improvement of systems and Environment

• Human resource systems and promotion programs to improve female manager ratio
• Encouraging flexible work arrangements that suit individual lifestyles, such as remote work, flextime, and career track transfers
• Women's Empowerment Support Project
• Study sessions and information exchange meetings for female consultants
• Training for managers to support the success of their female subordinates.

Driving Diversity & Inclusion

• Acquired "Eruboshi Certification" based on the Act Women's Empowerment

  Funai Soken Holdings Inc.	3-star rating (certified October 20, 2025)
  Funai Consulting Inc.	3-star rating (certified October 20, 2025)

• Parental leave return program (including iPad loan, pre-return interviews (about working style after returning to work), etc.)

Women's Empowerment by leveraging the characteristics of the business

• Human resource allocation and development that leverages the characteristics of the business.

Promoting paternity leave for men

• Funai Soken Group is working to create Environment that encourages men to take paternity leave. the paternity leave uptake rate reached 100%. by FY 2025.

Case Study

Funai Soken Holdings Inc.

Grateful for the Support of My Team

In the group's finance department, where women make up about 60% of the staff, each member thrives by working in a way that suits their life stage. I myself have experienced taking and returning to work twice due to maternity leave. The support I received, such as remote work, flexible working hours, and information sharing during my leave (including the provision of a PC and mobile phone), allowed me to return to work with peace of mind. Above all, the support I received from my colleagues in the department during and after my leave was incredibly reassuring and appreciated.

Akiko Nishimura

Group Accounting Department Manager
Funai Soken Human Capital Consulting Inc.
Directors

Case Study

Funai Consulting Inc.

BPO services (lead call outsourcing, seminar operations, etc.)

Leveraging the operational know-how of the staff division, we transformed the external sales division from a startup to a core revenue-generating business.

development of back office consultants

We aim to enhance workplace value by development "back office consultants" who improve operations in back-office tasks and other areas of work that are predominantly female.

From RPA Operator to Back Office Consultant

As part of business process improvement, employees from a non-technical background ran RPA for approximately 9,000 hours over four years. One of the female staff members who was involved in this work has since transitioned to a back-office consultant role and is now actively contributing to the company.

Yuko Tasaka

consultant

Onboarding for mid-career hires

Pre-employment support

Before receiving a job offer, candidates create a "Career Vision Sheet" with their prospective department head. By solidifying their vision of success before the final interview, we support them in becoming valuable assets immediately after joining the company.

1-on-1 after joining the company

We conduct one-on-one meetings with the head of the Human Resources Development department to discuss gaps between expectations and reality , as well as key points for your future success.

Mid-Career Cohort Meetings & Training

These Mid-Career Cohort Meetings & Training and training programs for mid-career hires are designed to help them gain a deeper understanding of the company and its operations, and to foster connections both within and outside the company.

Promoting employment for people with disabilities

Funai Consulting Inc. has established a "Challenged Success Unit" within its Employee Success Division.

Funai Consulting Inc. , a group company, has been actively promoting the employment of people with disabilities. In 2015, it established a Clean Support Office and a Business Support Office at its Osaka office, and in 2020, it established a Line Support Office in Ehime Prefecture. In 2024, it also established an Office Support Office at its Tokyo office.

Through these Initiatives , Funai Consulting Inc. has achieved the legally mandated employment rate of 2.5% for people with disabilities. Moving forward, we will leverage the employment expertise cultivated at Funai Consulting Inc. to expand to other group companies, working towards achieving the legally mandated employment rate (2.5% in 2025 and 2.7% in 2026) for group companies with 40 or more employees.

Furthermore, at Funai Consulting Inc. we are preparing to assist our client companies in promoting the employment of people with disabilities, thereby contributing to the realization of diversity, equity, and inclusion in Society as a whole.

Job Satisfaction and Work Fulfillment

We are working to create a workplace Environment where employees with disabilities can work in a way that suits their specific disability and career vision. Actively collaborating with members from other departments, creating results, and becoming an indispensable part of the team contributes to their retention.

Leading ESG initiatives

Members of the Challenged Success Unit themselves lead ESG initiatives by conducting awareness campaigns at company-wide morning meetings and conferences regarding " creating an environment " and "promoting diverse working styles."

Daily Work Scenes

We are constantly taking on new challenges, such as increasing workload through productivity improvements and developing business proposals in collaboration with consultants.

(Examples of increased productivity: Transcription 2.9 times, number of direct mailings 1.9 times)

Scenes from the online awards ceremony

Messages of appreciation were shared with employees in recognition of their daily dedication and hard work throughout the year.

Empowering Global Talent

We believe that employing diverse talent and allowing each individual to demonstrate their unique abilities enhances the organization's competitiveness, and therefore we support the success of employees of foreign nationality

Community for international employees

Examples: Study sessions, information exchange meetings, and social gatherings for international employees.

Training and Education

Example: Diversity training (conducted for managers, covering topics such as key aspects of diversity and onboarding practices for international employees)

Support for new hires of foreign nationality

Examples: Translation of onboarding documents, support for onboarding procedures, etc.

Health Management & Occupational Safety

At Funai Soken Group , we recognize that ensuring the occupational safety and health of all executives and employees throughout the group is the most important element of our business activities. We are committed to creating an environment our employees, who are our most valuable asset, can work safely, in good physical and mental health, and with a sense of purpose.

• Linking business strategy with Health and Productivity Management
• System for promoting Health and Productivity Management
• Health Management Initiatives and KGIs
• Specific approaches to Health and Productivity Management
• Occupational Safety and Health and Risk Management
• Employee support program

Linking business strategy with Health and Productivity Management

Health and Productivity Management Declaration (Policy)

Towards realizing our group purpose: " Sustainable Growth for More Companies "

Based on its "Basic Human Resources Policy (4. Health and Productivity Management )," Funai Soken Group will implement Initiatives to maintain and improve employee health as a foundation for realizing Sustainable Growth for More Companies sustainable growth company," thereby enabling its employees to unleash their potential and maximize productivity.

Funai Soken Holdings Inc.
Takayuki Nakatani President and Group CEO

Objectives and effects of promoting Health and Productivity Management

The desired effects of promoting Health and Productivity Management are as follows:

• Enhancing long-term employee success and engagement
• Improving retention rates through early health follow-up
• Maximizing ELTV (Employee Lifetime Value)

We analyzed the health scoring reports from our health insurance association and various internal health indicators to identify our company's health challenges. Specifically, our goal is to maximize ELTV (Employee Life Time Value), and our KGIs for FY 2028 are: ① Net sales per employee of 23 million yen, and ② an expected length of employment of 7.0 years.

System for promoting Health and Productivity Management

To steadily advance Health and Productivity Management , President serves as the Health and Productivity Management Officer, and a Director and Executive Officer serves as the Health and Productivity Management Promotion Officer. Our Health and Productivity Management promotion policies and various measures are reported to and approved by the Board of Directors and the Management Meeting.
Furthermore, we are promoting collaborative health initiatives, including data sharing with health insurance associations, and engaging in dialogue and role-sharing with labor unions through Health and Safety Committee , thereby promoting Health and Productivity Management as a unified company. In practical terms, we have established a robust promotion system by assigning professionals such as occupational physician , public health nurse , and certified psychologists, as well as dedicated staff.

Labor-management communication (cooperation with labor unions)

In our domestic group companies, we have established Health and Safety Committee in accordance with the Industrial Safety and Health Act. These committees involve employees (including union members) and occupational physician who deliberate and implement measures to maintain and improve health, prevent health hazards, and reduce the risk of Workers’ Compensation Claims / Occupational Accidents . At Health and Safety Committee held once a month at each workplace, union representatives, representing the workers, bring back agenda items to gather opinions and engage in discussions, thus fostering active consultations between labor and management.

Health Management Initiatives and KGIs

Quantitative targets and review for 2025 in Health and Productivity Management

To improve indicators with low consultation rates, we have set the following quantitative targets for our main target group ( Funai Consulting Inc. and Funai Soken Holdings Inc. ) and are implementing the PDCA cycle.

Target indicators	Targets	FY Performance and Review
①Specific health guidance participation rate	60%	Calculation in progress
②Secondary checkup participation rate	100%	84.1% (Not met) Although this represents a significant improvement from FY (71.0%), it fell short of the target, so we will continue to take strong measures. In addition to the existing subsidies for examination costs, we have introduced a new measure to "recognize the time spent on secondary examinations as working hours" to further encourage people to undergo examinations.
③Stress check consultation rate for high-stress individuals	50%	50.0% (achieved) Interviews with employees experiencing high levels of stress were conducted during working hours, and medical professionals proactively encouraged these interviews. The content of these interviews was reported to management in an anonymous manner and is being used to improve the workplace Environment .

Specific Initiatives and results for FY 2025

At our company, we have identified health challenges and established five working groups to implement measures focusing on: ① work-life balance support, ② improving health literacy, ③ promoting healthy lifestyle habits, ④ mental health measures, and ⑤ addressing gender-specific health issues.
In FY 2025, we conducted interviews with all new employees (100% interview rate) to enable early health follow-up, and significantly promoted understanding of gender-specific issues through e-learning on women's health (97.6% completion rate). In addition, we strived to improve employees' health literacy through initiatives such as breakfast events as part of promoting healthy lifestyle habits (planned to be held 12 times a year, average satisfaction rate 80.9% ^*1 ), the establishment of support desks for balancing treatment and work, and the holding of health seminars.

*1 Percentage of people who gave a positive response to the question of whether they were satisfied with the breakfast.

2026 targets for Health and Productivity Management

In FY 2026, some of FY 's targets were not met, and even those that were achieved only slightly exceeded Targets . Therefore, we will continue to set the same quantitative targets and implement the PDCA cycle.

Target indicators	Targets
①Specific health guidance participation rate	60%
②Secondary checkup participation rate	100%
③Stress check consultation rate for high-stress individuals	50%

Quantitative analysis data over time

To demonstrate the effects of Health and Productivity Management on corporate management and the trends in employee performance, we continuously measure and disclose the following indicators.

Classification	index	Achievements
		2024FY	2025FY	2026FY
In Health and Productivity Management Productivity indicators	Presenteeism*2	-	16.9	18.1
	Absenteeism*3	-	3.0 days	3.3 days
	Employee engagement*4	78.2	Calculation in progress	Calculation in progress
	Work engagement*5	-	2.9	2.9
Status of health policy Initiatives Indicators related to	Regular health checkup participation rate	100%	100%	Calculation in progress
	Secondary checkup participation rate	71.0%	84.1%	Calculation in progress
	Stress check participation rate	96.7%	98.8%	92.6%
	Implementation rate of specific health guidance	23.1%	Calculation in progress	Calculation in progress
	Average overtime hours	-	7.0 time	Calculation in progress
Changes in employee attitudes Indicators related to behavioral change	The rate of people with good smoking habits	-	-	79.4%
	Percentage of people with good eating habits	-	-	20.9%
	Health literacy status*6	-	-	3.9
Ultimate health-related target indicators	Percentage of people with a healthy weight	70.6%	Calculation in progress	Calculation in progress
	visibility	49.8%	50.5%	Calculation in progress
	Average length of service	6.0 years	6.0 years	Calculation in progress
	Percentage of people taking time off due to mental health issues	4.5%	3.8%	Calculation in progress
	High stress rate	9.2%	7.5%	8.8%

*2. Measured using SPQ (University of Tokyo 1-item test).
*3. Measured by the question, "How many days did you take off work last year due to physical or mental health issues?"
*4. Measured by tissue SANBO
*5. Measured using the Work Engagement Scale within the 80-item New Brief Occupational Stress Questionnaire.
*6. Measured using the Communicative and Critical Health Literacy Scale
*For items 2, 3, and 5, the number of participants measured FY FY2025 was 1,182/response rate 77.7%, and the number of participants measured FY was 1,445/response rate 93.1%.

Specific approaches to Health and Productivity Management

1. Mental health support

① Establishment of a consultation service for workplace stress.
We have established a consultation service staffed by occupational physician and public health nurse so that employees can easily discuss concerns about workplace stress, as well as anxieties and questions regarding their overall health. We provide consultations and advice on mental and physical well-being even before specific health problems arise. We give the utmost consideration to individual privacy and adhere to confidentiality obligations.

② Thorough dissemination of information about consultation opportunities
To ensure that employees can easily utilize the consultation service, we regularly provide information about consultation opportunities every month via the company intranet to ensure thorough awareness.

③ Measures to prevent and support mental health in the early stages

• Conducting public health nurse consultations for all new employees: This is not a voluntary system, but is conducted for "all" new employees. This allows us to make the company's support system known early on, leading to early detection and response to potential health risks and a quicker return to work.
• Providing self-care training videos tailored to business characteristics and risks: We inform all new employees about training videos that take into account our business characteristics (high level of expertise and customer-facing work) and risks. The aim is to enable them to recognize changes in their own physical and mental state at the early stages before symptoms appear and to take appropriate action early on.

*The scope of this agreement includes Funai Consulting Inc. , Inc., Funai Soken Supply Chain Consulting Inc. , Funai Soken Human Capital Consulting Inc. , and Funai Soken Holdings Inc. , Ltd.

④ Workplace reintegration support program
When an employee returns to work after taking leave due to illness or injury, a diagnosis by their primary physician is mandatory. A return-to-work plan tailored to their individual circumstances will be developed in consultation with the company occupational physician . We actively utilize trial work periods and gradual workload adjustments to support a smooth and manageable return to the workplace. Even after returning, we support recurrence prevention and job retention through regular follow-up consultations with occupational physician and the establishment of a company consultation service (Human Resources Department).

2. Review of optional items in regular health checkups and promotion of awareness regarding secondary examinations.

• Cost Coverage for Gastroscopy : When employees aged 35 and over undergo a comprehensive health checkup, the company will cover the cost of the gastroscopy if they choose to have it as an option.
• Cost Coverage for Secondary Examinations : For employees with findings in their regular health checkups, the company covers a portion of the cost of secondary examinations. Furthermore, the time spent on secondary examinations is recognized as working time, and thorough measures are taken to prevent serious complications and avoid disruption to future work or personal life.

Occupational Safety and Health and Risk Management

Occupational Safety and Health Management System

Chief Executive Officer	Takayuki Nakatani ( President and Group CEO Funai Soken Holdings Inc. Holdings)
Deliberative and promotional bodies	Health and Safety Committee (Chairperson: Executive Officer in charge of HR) Important matters related to occupational safety and health Health and Productivity Management (such as the risk of serious Workers’ Compensation Claims / Occupational Accidents ) that are deliberated by the committee are reported to President and the Board of Directors at least once a year, and a system has been established in which the Board of Directors oversees these matters.
Secretariat	Funai Soken Holdings Inc. Human Resources Department

Promoting Awareness of Our Approach to Labor

Our key priorities regarding labor are clearly defined in the " Funai Soken Group Human Rights Basic Policy," which applies to all officers and employees of the group. Recognizing the importance of employees correctly understanding the group's policies and approach to labor, we conduct comprehensive training and awareness-raising Initiatives for all employees, including content on human rights, occupational safety, corporate philosophy, and group purpose. New employees receive training within 90 days of joining the company. Furthermore, the Human Rights Basic Policy, Human Resources Basic Policy, and Group Purpose are translated into English and Chinese, taking into account the company's employee composition.

Objectives, achievements, and risk assessment regarding Workers’ Compensation Claims / Occupational Accidents

Our group aims for zero Workers’ Compensation Claims / Occupational Accidents each year, and we conduct risk assessments related to work safety through Health and Safety Committee and Risk Management Committee.
Specifically, at Funai Soken Supply Chain Consulting Inc. 's warehouse, we are implementing near-miss management and conducting risk assessments to prevent serious disasters and accidents. Within the facility, we are strengthening awareness activities to prevent recurrence, such as installing warning signs at hazardous areas and disseminating the contents of discussions at Health and Safety Committee to all employees via the intranet. There have been no fatal accidents so far.

Occupational Safety and Health Objectives	Goals and Achievements for 2023-2025	2026 Plan
Target 1 Zero Workers’ Compensation Claims / Occupational Accidents by 2025	FY 2023: 3 cases (falls, sprains, etc.) FY 2024: 4 cases (falls, etc.) FY 2025: 7 cases (falls, injuries, etc.)	Review and thorough dissemination of safety education. - Promote risk assessments for existing facilities and strengthen labor safety management during office relocation. - Conduct a risk assessment regarding work safety.
Target 2 Zero fatal accidents by 2025	FY : 0 items FY : 0 items FY : 0 items

Actual performance of Lost-Time Incident Rate (LTIR)

Scope of aggregation	2021	2022	2023	2024	2025	Scope of aggregation (details)
Funai Soken Holdings Inc.	0	0	0	0	0	Funai Soken Holdings Inc. and its six consolidated subsidiaries [Company-wide - Office Equipment] Tokyo Head Office [Previous location: Marunouchi / New location: Yaesu] Osaka Head Office [Previous location: Yodoyabashi] [1 Office] Gotanda Office [1 Warehouse] Warehouse of Funai Soken Supply Chain Consulting Inc.
Funai Consulting Inc.	0	0	0	0	0

Initiatives to reduce excessive work hours

To prevent overwork, our Human Resources Department takes the lead in checking the work status of all employees multiple times throughout the month to ensure that statutory overtime hours (overtime exceeding 40 hours per week) do not exceed 45 hours per month. For employees who may exceed this limit, we request work adjustments through their direct supervisors.
To prevent health problems caused by overwork, we provide employees who work overtime exceeding the standards set by the Industrial Safety and Health Act with interviews with occupational physician and guidance on improvement measures involving their supervisor and the Human Resources Manager. We also offer similar opportunities to employees who work less than the legal standard (more than 45 hours but less than 80 hours per month).

[Examples of efforts to reduce overtime work]

1. Task rotation to standardize operations, and business efficiency improvements through customer involvement and a win-win relationship.
2. Improving employees' awareness of time management through a system requiring prior approval for overtime work.
3. Setting no-overtime days; employees coordinate with each other to set no-overtime days.
4. Announcement of recommended days for taking paid leave

Emergency safety measures

At our group, in the event of a disaster, incident, or accident, we prioritize the safety and security of our group employees and related parties, while also protecting our customers' critical information systems and information assets and striving to ensure business continuity. We post emergency action guidelines and contact procedures on our intranet to ensure thorough dissemination within the company, and we also strive to improve employees' crisis management awareness through regular e-learning. Furthermore, in preparation for emergencies such as disasters or accidents occurring around employees, we distribute "mobile contact cards" containing emergency contact information and procedures to all group employees.
To ensure that business operations can continue even in situations where employees cannot come to the office due to large-scale natural disasters or when attendance is restricted due to infectious diseases, we are building a crisis response system in a telework Environment and continuously reviewing our business continuity plan.

[New Initiatives ] Establishment of an emergency hotline for relatives of international employees ( Launched in 2025 )
Starting in 2025, we have established an emergency hotline that allows relatives of international employees Contact Us directly in English or Chinese. This hotline will serve as a point of contact in English or Chinese for family members in the event of an emergency such as a disaster or accident that occurs around an employee and prevents them from contacting the employee directly. This will provide a safer working Environment for international employees and their families.

Employee support programs (benefits and various systems)

To accommodate diverse lifestyles and work characteristics, and to create Environment where employees can work with peace of mind for the long term, we have introduced various support programs.

Realizing flexible and diverse work styles

In addition to regular fixed working hours, we have introduced the following system:
・Flextime System (eligible: c) / Work-from-home system (eligible: a, details set by each company) / Short-Time Work System (eligible: a, mainly to support work-life balance for childcare and elder care) / Staggered Working Hours System (eligible: a, mainly to support work-life balance for childcare) / Paid leave can be taken in half-day increments (eligible: a) or hourly increments (eligible: d. * Funai Soken Human Capital Consulting Inc. Co., Ltd. does not have hourly paid leave as all employees have full flextime)

Support systems for childbirth, childcare, and infertility treatment

- If your spouse/partner gives birth: 2 days of special leave (eligible: b)
- Subsidies for babysitting fees (eligible: c)
- The " Stork budget system " (target: e) aimed at supporting the career paths of consultants.
- Support for work arrangements upon returning from parental leave / Promotion of paternity leave (individual guidance, posting of interviews with employees who have taken leave on the company intranet, etc.), and holding information sessions at the departmental level (* Funai Consulting Inc. and Funai Soken Agata FAS Inc. conduct these sessions at the departmental level upon request).
• Infertility Treatment Leave : One day of special leave per month is available to both men and women (eligible: c)

Support and Other leave systems related to caregiving

• Support related to caregiving: Subsidies for home helper dispatch fees (eligible: f)
• Refreshment and Other leave: Year-end and New Year holidays (eligible: b) / Additional 5 days of annual paid leave (eligible: b) / Accumulated leave (a system that allows unused annual paid leave to be accumulated up to 40 days under limited conditions such as illness, medical visits, childbirth, childcare, nursing care, etc., eligible: b) / Special leave (for celebrations and condolences, etc.)

Support for late-night and holiday work

In some departments where nighttime and holiday work is necessary due to business needs, we have recruitment flexible working hours and shift work systems, taking into consideration the actual circumstances of each department, including management.

Scope of companies covered by each system (as of the end of December 2025)

symbol	Scope of target companies	Percentage of consolidated number of employees
a	Funai Soken Holdings Inc. , Funai Consulting Inc. , Funai (Shanghai), Funai Soken Logistics Inc. (now Funai Soken Supply Chain Consulting Inc. ), HR Force Inc. (now Funai Soken Human Capital Consulting Inc. ), Funai Soken Agata FAS Inc.	Over 95% (basically the entire group of companies)
b	Funai Soken Holdings Inc. , Funai Consulting Inc. , Funai Soken Logistics Inc. (now Funai Soken Supply Chain Consulting Inc. ), HR Force Inc. (now Funai Soken Human Capital Consulting Inc. ), Funai Soken Agata FAS Inc.	Over 95% (basically all domestic group companies)
c	Funai Soken Holdings Inc. , Funai Consulting Inc. , Funai Soken Logistics Inc. (now Funai Soken Supply Chain Consulting Inc. ), HR Force Inc. (now Funai Soken Human Capital Consulting Inc. ), Funai Soken Agata FAS Inc.	90% to less than 95%
d	Funai Soken Holdings Inc. , Funai Consulting Inc. , Funai Soken Logistics Inc. (now Funai Soken Supply Chain Consulting Inc. ), Funai Soken Agata FAS Inc.	90% to less than 95%
and	Funai Soken Holdings Inc. , Funai Consulting Inc. , Funai Soken Logistics Inc. (now Funai Soken Supply Chain Consulting Inc. ), Funai Soken Agata FAS Inc.	85% to less than 90%
f	Funai Soken Holdings Inc. , Funai Consulting Inc. , HR Force Inc. (now Funai Soken Human Capital Consulting Inc. ), Funai Soken Agata FAS Inc.	85% to less than 90%