SUSTAINABILITY

Comprehensive Sustainability Commitment

1) Our Approach to Sustainability

Our Group is committed to becoming a trusted corporate entity for all stakeholders--including customers, shareholders, business partners, local communities, and employees--by balancing business growth with contributions to a sustainable environment and society. We believe that sustainable management is essential not only for continuous expansion and development, but also for enhancing long-term corporate value.
To achieve this, we are actively strengthening our governance framework, identifying material issues, and setting relevant indicators and targets to integrate sustainability into our business operations. we recognize our responsibility to minimize the environmental impact across the entire semiconductor supply chain and to contribute to the realization of a sustainable society.

We have established a CSR Policy and promote business activities aligned with the RBA Code of Conduct to fulfill this responsibility.

2) Sustainability Governance Structure

To promote sustainability across our Group, we have established the ESG Committee, chaired by the President and Representative Director. The committee includes executive officers from each Group company and representatives from the internal audit division and convenes quarterly.
The ESG Committee serves as a platform for sharing information and discussing key issues and initiatives related to sustainability, including climate change. Matters of significance are reported to the Board of Directors, which oversees sustainability-related efforts and makes comprehensive decisions.

3) Risk Management

To assess the significance of risks and opportunities related to sustainability--including climate change--our Group has established the Crisis Management Committee, chaired by the President and Representative Director.This committee, which includes key executives, meets quarterly and is also convened on an ad hoc basis in response to critical incidents affecting business operations, enabling swift and effective action.
The committee regularly reviews sustainability-related risks and opportunities, considering their potential impact on our business and society. Important matters are reported to the Board of Directors, which oversees sustainability initiatives and incorporates them into strategic decision-making and progress monitoring.

4) Strategy

To achieve sustainable growth while contributing to the environment and society, our Group has identified key material issues across the areas of Environment, Social, and Governance. These material topics serve as strategic priorities, guiding our efforts to address challenges and create long-term value.
In identifying these material issues, we conducted a comprehensive assessment based on international ESG disclosure standards such as the SASB Standards, evaluation criteria from ESG rating agencies, and relevant social issues surrounding our Group.
We then evaluated the extracted sustainability-related management issues using a materiality matrix, considering both their financial impact on our Group and their importance to stakeholders. Items with the highest significance were designated as our Group's material issues, forming the foundation of our sustainability strategy.

5) Indicators and Targets

Alongside the identification of materiality in the areas of Environment, Social, and　Governance, our Group sets specific indicators and targets for each material issue. We regularly monitor progress toward these annual targets and report the results to the ESG Committee.

Human Capital Development

Our Group is committed to building an organization and workforce where both employees and the company can grow together, with the aim of achieving sustainable growth and contributing to society. We view our people as valuable assets--our "human capital"--and strive to create a workplace environment where every employee can thrive with a strong sense of psychological safety and maximize their performance to generate social value.
To support talent development, we have established a structured human capital development program that encourages employees to take ownership of their skills and career growth. Under a globally unified HR system, we are building a framework that enables our workforce to collaborate as "One Team" toward shared goals, empowering individuals to succeed across countries and regions.
In addition, we recognize Diversity, Equity & Inclusion (DEI) as a key driver of transformation and have implemented initiatives that position DEI as a core element of our value creation strategy.

1) Strategy

01 Human Resource Development Policy / Enhancing Engagement

Our human resource development policy is designed to strengthen organizational capabilities by supporting the growth of each individual employee. This approach enables us to respond effectively to changes in our business, organizational structure, and external environment, while fostering employee development that contributes directly to the company's overall growth.

1. Fostering Shared Values and Principles Across the Group

To consistently meet--and exceed--the expectations of our customers worldwide, our Group promotes a unified culture under the principles of "One Team" and "One Operation." Through various human resource development programs, we actively foster shared values and a common philosophy that enable our organization to work together seamlessly and deliver the highest level of performance across the entire Group.

2. Building Self-Directed Careers

Our Group believes that empowering each employee to fully perform in their respective roles not only enhances overall organizational performance but also enables individuals to proactively shape their next career steps in alignment with the company's growth and evolution.
To support self-directed career development and foster a culture of continuous learning, we offer career development training tailored to each organizational level, along with recommended learning programs and a variety of self-improvement opportunities.
We also provide appropriate platforms such as internal job postings and self-declaration systems to encourage employees to take initiative in shaping their own career paths.

3. Strengthening Organizational Capabilities through Foundational Knowledge in Management and Business

Our Group believes that enhancing organizational performance requires each employee to clearly understand their role, possess the necessary knowledge and skills, and collaborate beyond organizational boundaries. To support this, we offer a wide range of high-level training programs and learning content tailored to specific objectives. We also encourage interaction with internal and external professionals in similar roles or levels to broaden perspectives and foster new value creation through expanded viewpoints and elevated thinking.

4. Driving Innovation and Productivity through Advanced Technologies

To improve productivity through automation, simplification, and visualization of operations--as well as enhanced communication and collaboration--our Group promotes the upskilling of the entire organization beyond individual departments.We are also committed to developing specialized talent capable of leading innovations and adopting the latest technologies.

5. Embedding Organizational Culture and Enhancing Engagement

Our Group conducts engagement surveys to assess how deeply our core organizational values--such as respect for diversity, teamwork, proactive challenges, and continuous improvement--are embedded across the company, and to measure employee motivation. Based on the survey results, we implement various initiatives aimed at improving engagement, while fostering a workplace culture where every employee feels empowered, fulfilled, and able to thrive.

02 Promoting Diversity, Equity & Inclusion (DEI)

Our Group recognizes that sustainable growth and development require respecting the diversity of every employee--regardless of age, gender, race, or nationality--and enabling each individual to perform at their highest potential. We are committed to creating an environment where employees with different perspectives can collaborate and learn from one another, fostering both personal and organizational growth. This approach helps build a workplace where every employee can thrive on a global stage.

1. Promoting the Employment of Diverse, Highly Skilled Talent Across Departments

Our Group actively promotes the recruitment of experienced professionals with specialized expertise, regardless of gender, age, race, or nationality. We have established onboarding programs that support new hires from the selection process through post-hire integration, helping them feel secure and enabling them to contribute quickly.
To further support their success, we offer follow-up training for mid-career hires after a certain period, aimed at deepening their understanding of our corporate culture, sharing challenges, and building networks among peers.

2. Promotion of Women's Participation / Employment of Persons with Disabilities

Our group is committed to promoting women's participation in the workplace. Based on the concept of affirmative action, we have formulated an action plan and are implementing various initiatives. The percentage of female employees in managerial positions was 4.4% in FY2023 and increased to 8.4% in FY2024. We aim to raise this figure to 15.0% by FY2030.
We are also actively working to promote the employment of persons with disabilities. In collaboration with nearby special needs schools, we conduct ongoing recruitment activities. In addition, we are improving workplace facilities--such as installing automatic doors and upgrading restrooms--to create an environment where everyone can work safely, comfortably, and with vitality.

03 Work Style Reform

As work style needs continue to diversify--such as balancing work with childcare or caregiving--expanding employment opportunities and creating an environment where employees can fully demonstrate their motivation and abilities has become a key challenge for companies. Our group is working to improve productivity while promoting work-life balance by implementing various measures that support life events such as childcare and caregiving. We are also expanding flexible work arrangements, including remote work and smart work options.
In addition, we are enhancing both the digital and physical aspects of our workplace, such as digitizing administrative procedures and improving office environments for functionality and convenience. Through these efforts, we aim to create a workplace where employees can successfully balance work and personal life.

04 Promoting Employee Health and Safety

We view the promotion of employee health as a long-term investment in human capital. In collaboration with our health insurance association and companies that support Employee Assistance Programs (EAP), we are actively working to maintain and improve the physical and mental well-being of our employees.
For physical health, we partner with the health insurance association to encourage follow-up medical consultations and interviews for employees requiring re-examinations based on health check results, aiming for early detection and disease prevention. We also promote health initiatives at each site, such as walking events using dedicated apps and online Pilates sessions.
For mental health, we conduct stress checks and implement workplace improvement measures. We have established a support system in collaboration with occupational physicians and counselors to assist employees in returning to work.
Starting in FY2024, we have strengthened our partnership with a new EAP provider, enabling employees to seek timely advice not only on health-related matters for themselves and their families but also on personal concerns. We are also enhancing mental health support by offering training to managers based on stress check results, further promoting the overall well-being of our workforce.

2) Indicators and Targets

As part of our human capital and diversity initiatives, we are advancing efforts from three key perspectives: gender, mid-career recruitment, and nationality. The following table outlines our main diversity-related KPIs, along with their targets and actual results for FY2024.

1.

The percentage of women in managerial positions is calculated based on the provisions of the Act on Promotion of Women's Participation and Advancement in the Workplace (Act No. 64 of 2015).

2.

The paternity leave utilization rate is calculated in accordance with the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave (Act No. 76 of 1991), and the Ordinance for Enforcement of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members (Ministry of Labour Ordinance No. 25 of 1991), specifically Article 71-6, Item 1.