Enhancing Workplace Comfort and Job Satisfaction

At Sumitomo Riko, we are promoting the "Iki-Iki (Lively) 5 Activities" as part of our efforts to "foster a corporate culture where employees find fulfillment in their work," a key goal of the Sumitomo Riko Group Vision 2029 (2029V).
This initiative began in April 2017 as a group-wide campaign to reform work styles. With the goal of “establishing systems and an environment that make it easier to work,” we have introduced various policies, including a telecommuting program, core-less flexible working hours, breaks between shifts, and “leave-on-time days.”
As a result, total working hours have been on a downward trend year by year, falling by more than 6% since fiscal year 2017, when the “Iki-Iki (Lively) 5 Activities” was launched. (Fiscal year 2017: 2,120 hours ⇒ Fiscal year 2025: 1,982 hours).
Starting in fiscal year 2023, with the goal of “Developing a Corporate culture and Foundation to Enhance Employee Engagement,” we transitioned to “Iki-Iki 5 Activities ver. 1.5” and carried out our initiatives centered on the formula “Workplace Comfort” × “Job Satisfaction” = “Employee Engagement.”
Regarding “Workplace Comfort,” we focused on: ① reducing long working hours for managers and supervisors and visualizing working hours to further reduce total working hours; and ② implementing health management initiatives. Regarding “Job Satisfaction,” we focused on: ① improving the workplace based on the results of engagement surveys; and ② promoting “SMART Managers” (Sumitomo Riko’s version of “Ikuboss”).
In fiscal year 2025, we further updated the program to “Iki-Iki 5 Activities Ver. 2.0” and are accelerating our efforts to improve employee engagement.
Going forward, we will strengthen collaboration across the Group and globally, and aim to foster a corporate culture rich in job satisfaction through the “Iki-Iki 5 Activities.”

We set targets for each initiative and steadily advance our efforts; at the same time, we track and analyze performance to drive continuous improvement. Furthermore, through our daily activities, we aim to foster company-wide awareness, transform our corporate culture, and achieve sustainable value creation.

We introduced an engagement survey starting in fiscal year 2024. In fiscal year 2025, based on the survey results, we implemented workplace improvement initiatives in selected departments—chosen through a voluntary "opt-in" process—and rolled out successful examples of these initiatives across the organization. In parallel, the HR department provides support by driving the "SMART Project" and conducting various training programs to foster the growth of "SMART Managers"*.
Moving forward, we will implement the SMART Project on a global group-wide scale to accelerate further improvements in engagement.

*At our company, we refer to workplace improvement initiatives utilizing engagement surveys as the "SMART Project." Additionally, regarding the balance between work and life, we designate managers who can achieve organizational results while also enabling employees to lead fulfilling personal lives as "SMART Managers."*

For the 2025 fiscal year, we set targets regarding overtime work: a 10% monthly reduction for career-track staff; maintaining the previous year's levels for technical and administrative staff; and—in principle—reducing the number of employees exceeding 60 hours of overtime per month to zero. Regarding paid leave, we aimed to increase annual usage by 1.5 days for career-track staff and by 0.5 days for technical and administrative staff, while also targeting a minimum of 13 days of leave taken across all job categories.
To enhance the effectiveness of these goals, we have established a system allowing individuals to view their targets within the time and attendance management platform; we are promoting initiatives that encourage proactive action based on an understanding of one's own status.
As a result, while further efforts are still required regarding overtime work, we achieved a 1.8% annual reduction among career-track employees. Regarding paid leave, employees took an average of 15.2 days (career-track), 16.0 days (technical track), and 17.3 days (administrative track); this means all job categories met the target of taking at least 13 days, with the technical and administrative tracks also achieving their specific targets for increased usage.
Moving forward, we will continue to drive ongoing improvements by further strengthening our efforts to meet targets and by considering new initiatives.

Based on the "Sumitomo Riko Group Health & Productivity Management Declaration" established in 2017, we have actively supported employees engaged in health promotion activities and implemented organizational health initiatives. In recognition of these ongoing efforts and the heightened health awareness among individual employees, we have once again been certified under the "Certified Health & Productivity Management Outstanding Organizations Recognition Program" (Large Enterprise Category)—specifically achieving "White 500" status, which is awarded to the top 500 organizations. This marks the tenth consecutive year since 2017 that we have received this certification.
We are further expanding our operations at both the group and global levels; domestically, we are strengthening our occupational health systems and addressing health-related issues, while globally, we are working to embed the philosophy of "Health and Productivity Management" throughout the organization.
Moving forward, we will continue to advance Health and Productivity Management—positioning it as a key initiative—based on the conviction that the physical and mental well-being of all Sumitomo Riko Group employees and their families forms the management foundation supporting the company's sound and sustainable growth. We remain committed to raising employee health awareness and fostering greater job satisfaction and engagement.

• "Volunteer leave and leave of absence" for volunteer activities
• "Career advancement leave" for the purpose of career advancement such as studying abroad
• "Job return system" for those who left the company once to rejoin the company
• "Telecommuting system" that anyone can use if it does not interfere with work
• "Flextime system" with no core hours
• Spousal leave system to live together with a spouse who stays abroad for a certain period of time

Program	Outline
On-site Daycare Center	Koala Pokke, located on site at the Komaki Plant, accepts children ranging from infants to those who are not yet in elementary school.
Childcare Leave	Maternity leave can be taken from 6 weeks prior to the expected birth date until 8 weeks after giving birth. Childcare leave can be taken upon completion of maternity leave until the day before the child’s second birthday.
Shortened Working Hours and Shorter-Hours Flextime	Up to 2 hours/day can be reduced. Eligible children are those “before completion of the 6th grade of elementary school”, and flex time can be taken in conjunction with the program.
Flextime for childcare	Employees with a child who has not completed elementary school education can set their own start and finish times at will. The application of the system can be flexibly changed every month.
Child Nursing Leave	This is a special leave available for taking care of injured or sick children who have not yet entered elementary school, for preventing epidemics, for closing classes due to infectious diseases, etc., and for entrance (enrollment) and graduation ceremonies. Up to 5 days may be taken per year.
Childcare incentive leave	Employees with a child under 1 year of age can take up to 5 successive business days off.

Program	Outline
Nursing Care Leave	Up to 365 days nursing care leave can be taken per event.
Shortened Working Hours and Shorter-Hours Flextime	Working hours can be shortened by up to 2 hours per day.
Short-term nursing care leave	Up to 5 days per year can be taken by employees caring for 1 family member or up to 10 days per year if caring for 2 or more family members. (Can be taken in half-day increments)
Nursing Care Flextime	Employees can set their own start and finish times at their will. The application of the system can be flexibly changed every month.

Category	Program Name	Overview
Cancer Treatment	Reduced Working Hours / Shortened Flex-time	Working hours can be reduced by up to 2 hours per day.
	Medical Treatment Leave	5 days granted per year
Fertility Treatment	Medical Treatment Leave	5 days granted per year

To foster employee awareness, we have been regularly disseminating information through the internal newsletter "Mitsukumi" and materials issued by the Human Resources Department. For the 2025 fiscal year, we are also focusing on information sharing via the Global Management Meeting (GMM) to strengthen collaboration across the Group and on a global scale.
At this annual conference, the heads of group companies gather to share initiatives and challenges across regions and companies, while engaging in a vigorous exchange of views. It serves as a vital forum for aligning perspectives on the Group's overall direction and achieving consensus at the management level, thereby deepening mutual understanding and fostering a sense of unity.
Through this initiative, we promote the horizontal sharing of practical examples and insights from various bases, while driving efforts to realize value creation and sustainable growth across the entire Group.

At Sumitomo Riko, employees—excluding core management staff, specially appointed employees, and contract employees—are members of the labor union. In 1987, the company and the labor union concluded a "Labor-Management Declaration." Based on mutual trust and cooperation, this declaration affirms a shared commitment to corporate prosperity and the resulting stability and improvement of employees' livelihoods.
Guided by the spirit of this labor-management declaration, we have established joint committees addressing areas such as working hours, wages, health and safety, and employee benefits, and have proceeded with improvements to various systems and employment conditions. In the event of business restructuring or similar developments, we ensure that sufficient time is dedicated to providing explanations and conducting consultations.
Moving forward, as counterparts, labor and management will continue to respect one another in order to adapt to diverse values and rapidly changing social conditions, and will work to promptly gather and address feedback and incorporate it into various policies.