Daiwa House Industry : Chapter 7 Strengthening our Bases [2.3MB］

Strengthening our Bases

	Strengthening the human resources base	73
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	Roundtable: Preservation of Mount Yoshino's
	Cherry Trees and Our Hopes for the Future	77
	Strengthening our technology and		Chapter7
2
	manufacturing base	81
	Strengthening our customer base	83
3
	Human rights management	85
4

Daiwa House Group Integrated Report 2023 72

Message from the CEO

Long-Term Vision and the 7th Plan

The Story of the Group's

Value Creation

Message from the CFO

Developing

our Businesses

Environmental Vision	Strengthening	Governance
our Bases

Financial Results,

Corporate Information

Chapter 7 Strengthening our Bases

1 Strengthening the human resources base - Views on human capital management -

Employees

In line with the Group's policy of "developing people through business," we believe that increasing the value of human resources (human capital) is the engine that drives enhancement of corporate value. Therefore, since our founding we have prioritized the growth of human resources. Under the Seventh Medium-Term Management Plan, by proactively investing in human capital and creating opportunities for employees to grow, we are maximizing the value of individual employees and the Group's organization as a whole, and building a foundation for innovation.

Our current workforce

Employees

Approx. 49,000

Centered on DE&I that respects each person's individuality, we will secure and develop human

Our future vision (targeted human resources base)

Develop into a corporate entity that creates new value for society

by bringing together a diverse range of individual employees and enabling them to fulfill their potential, based on Our Hopes for the Future (purpose)

Toward further strengthening of our human resources base

Principal measures relating to human capital and diversity

resources and ensure employee job satisfaction and well-being, responding to ongoing social change. In these ways, we will enhance employee engagement and increase the Group's enterprise value in a sustainable manner.

1 Securing and developing

human resources

By securing diverse human resources in line with our business strategies and providing multi-track growth opportunities that closely match the individuality and values of each employee, we will support autonomous and sustainable career development.

2 Job satisfaction and

well-being

We will foster an organizational climate and culture in which a wide diversity of employees can express their individuality in a healthy and psychologically safe work environment, and can come together through dialogue to create new value as an organization.

3 Enhancing employee engagement (employee motivation)

Improving corporate value

Key indicators and targets relating to human capital P.117

Daiwa House Group Integrated Report 2023 73

Message from the CEO

Long-Term Vision and the 7th Plan

The Story of the Group's

Value Creation

Message from the CFO

Developing

our Businesses

Environmental Vision	Strengthening	Governance
our Bases

Financial Results,

Corporate Information

1 Securing and developing human resources

Strengthen our recruitment of diverse human resources who share our purpose,

and support their autonomous career development by providing multi-track growth opportunities.

We will reinforce our recruitment of new graduates with an eye to the Group's future in 2055. We will also focus on securing the kind of employees that we believe will be of value in realizing our business strategies, particularly those with a high level of technical expertise, those versed in digital technologies, and talented recruits from overseas. We will support employees' personal growth and help them fulfill their ambitions by providing multi-track growth opportunities conducive to their autonomous career development. We will also facilitate exchange of personnel across organizational boundaries, both within the Group and with external companies, aiming to increase the value of our human capital.

Achieving optimal assignments for new graduate recruits Introduction of "To Do Course" and "To Be Course"

To be able to assign new recruits to businesses and occupations that match each person's aptitudes and career aspirations, starting with new graduate recruitment in 2024, we will be dividing recruitment screening into two courses - the To Do Course (recruitment by the applicant's preferred business & job type) and the To Be Course (in which all business and job type options are still on the table).

Multi-Experiential Career Support Program

In fiscal 2022, the Company introduced a career support program for employees wishing to work across industry boundaries. This centers on side jobs to help employees grow and develop independent careers. We support autonomous career development by expanding systems that allow employees to voluntarily find opportunities to excel beyond organizational boundaries.

Self-Discovery system

In fiscal 2022, we changed the name of the previous self-assessment system to the Self-Discovery system, and revised the content to focus more on improving employees' understanding of their autonomous career development. We have made the questions more specific, so that employees may gain a more accurate and realistic understanding of their career prospects.

Training program for high school graduates

As part of an educational program for high school graduates, the Company offers a two-year study abroad program at an architectural vocational school (full-time). For the first two years after joining the Company, students do no actual work other than practical training at construction sites during the long vacations, and will be able to focus on acquiring specialized knowledge and

System menu

Company-arranged secondary employment

Work at another employer is arranged by the Company through an open call for each project

(As of April 1, 2023)

Self-arranged secondary employment

The employees themselves arrange to work at another employer (a corporation or NPO, etc.)

Developing Global Human Resources

In fiscal 2022, we introduced the Global Human Resource Development Program in order to systematically develop and strengthen human resources for successful overseas business development. Through

this program, we are working to develop global

skills as an architectural engineer. We have a system in place that maintains contact between the Company and the students during their study program. In this way, we support high school graduates in improving their specialized knowledge and quickly acquiring qualifications, while also cultivating their interpersonal skills and becoming fully rounded adult members of society.

In-house

secondary employment

The employees spend some of their working hours on other work at a different department while remaining a member of their current department

Secondment to

a different company

The employees can experience work that is different from their current employment by spending a fixed period working at a different company

human resources - staff who have the mindset and skills to lead value creation at any worksite, regardless of where or with whom they work.

Daiwa House Group Integrated Report 2023 74

Message from the CEO

Long-Term Vision and the 7th Plan

The Story of the Group's

Value Creation

Message from the CFO

Developing

our Businesses

Environmental Vision	Strengthening	Governance
our Bases

Financial Results,

Corporate Information

2 Job satisfaction and well-being

Create a healthy and fair work environment where employees can fully demonstrate their individuality while enjoying job satisfaction.

Empowering female employees

In our Seventh Medium-Term Management Plan (FY2022-2026), we have established a goal of appointing 500 female managers (8% of entire managers), approximately twice as many as in the first year (April 1, 2022). We hope to change the mindset of not only our female employees but also their superiors and male colleagues. By so doing, we aim to create an environment in which capable and motivated women can build their careers and work over the long term, and offer them opportunities for growth.

Childbirth and childcare support

In 2015, we established a new childcare support system (a support system for balancing childcare/ childrearing with career building), which marked a major shift in our policy from allowing time off work to helping to promote career building.

Major support systems related to childcare

(our own support systems that exceed the statutory level)

Flexible work styles

To increase the flexibility of working hours, in fiscal 2015 we introduced a staggered work shift system as a support measure for employees facing the need for childcare, nursing care for family members, and so on. We then followed this with the introduction in fiscal 2021 of a flextime system with no core time for employees in most job categories. In fiscal 2023, this system will be expanded to all job categories.

Promoting senior employees' active participation

Anticipating an aging and decreasing population, in 2013 the Company set its mandatory retirement age at 65, ahead of industry peers. Since then, we have regularly reviewed our treatment system for senior employees. In mid-career recruitment, we actively hire new entrants over the age of 50, and have established a system to secure human resources with advanced experience and skills and ensure that they can continue contributing to the Company for a long time.

Age 60

Age 65

Age 70

System name

Lump-sum payment program for fostering the next generation

Childcare leave system

Shorter working hours system

for childbirth & childcare

Family nursing care leave

Support system for

balancing childcare/childrearing

with career building

Reemployment opportunity

priority system

Overview

A program that employees receive a one-time payment of ¥1 million for each child born

(started in 2005)

(As of the end of March 2023, we had provided total benefits exceeding¥10 billion to 11,861 employees)

A system that allows employees to take leave of absence until their children become three years old; paid leave for the first five days

A system that allows employees to work shorter hours until their children reach the third grade of elementary school

A system that allows an employee to take up to five days leave per year to care for their children, spouse, parents, or grandparents, as well as the parents or grandparents of their spouse

Providing information for early return from childcare leave and staggered working hours to ensure more working hours after return, and assistance in using childcare and school facilities, babysitters, etc.

A system in which employees who have retired due to life events are given priority in the selection process when filling vacancies based on their wishes

Prior to March 2013

April 2013

Set mandatory retirement age at 65

April 2015

Established post-retirement rehiring system for employees over 65

April 2022

Abolished uniform retirement from management positions based solely on age

April 2023

Expanded menu of work-style options under the re-employment system

Normal									Employees
Mandatory							Post-retirement
treatment	retirement							employees
									under special contract
Normal	Retirement	Treatment of
from	senior employees	Mandatory
treatment	management * Remuneration will be	retirement
	positions	reduced by 30-40%
Normal	Retirement	Treatment of		"Active Aging
from	Mandatory
treatment	management senior employees	retirement	Program"
	positions
Normal treatment	Mandatory	"Active Aging
(seamless continuation)	retirement	Program"				No upper age limit
									Number of working days
									equivalent to current duty
Normal treatment	Mandatory	"Active Aging				New salary course established
(seamless continuation)	retirement	Program"				(for architectural
									engineering positions)

Daiwa House Group Integrated Report 2023 75

Message from the CEO

Long-Term Vision and the 7th Plan

The Story of the Group's

Value Creation

Message from the CFO

Developing

our Businesses

Environmental Vision	Strengthening	Governance
our Bases

Financial Results,

Corporate Information

3 Enhancing employee engagement (employee motivation)

The Group's concept of "employee engagement"

To realize Our Hopes for the Future, we have positioned improving employee engagement and fostering a healthy organizational culture as one of our most important key goal indicators.

Starting in fiscal 2022, we have revamped the employee engagement survey that we had conducted up to and including our Sixth Medium-Term Management Plan, and have re-specified new KPIs (key performance indicators) in line with our Seventh Medium-Term Management Plan.

Analysis of current situation

The level of employee motivation is at a high 82% when we aggregate positive opinions, but we focused on the 43% who answered "Definitely" or "Yes" and will raise this to the high goal of 70% by FY2026. At the same time, we will take measures to enhance pride in work and a sense of growth. Surveys will be conducted annually to check on the state of progress.

Miraimachi Sengen

(Futuretown Declarations)

A society where we live together in harmony

embracing the Joys of Life

In fiscal 2022, as one of our efforts to realize Our Hopes for the Future (purpose), we promulgated the

Over the next five years, we will focus on whether employees feel that their work is meaningful while empathizing with their hopes for the future. In order to increase the number of employees who can share the joy of living with those around them through work, from 2023 we will shift our focus from instilling Our Hopes for the Future to empathy and practical action. In addition, we will set targets that employees can use to estimate the degree of growth they feel by taking pride in their work.

Going forward, to enhance employee engagement, the Corporate Strategy Planning Department will plan and formulate specific measures in collaboration with each business division, and

Employee motivation Details of 2022 results

Definitely

Yes

Probably

Probably not

No

Definitely not

1. Are you able to work with a sense of purpose at your current company/job/workplace?

2%

4%

12% 15% 39% 28%

Aiming for 70%

Miraimachi Sengen nationwide. At each business branch and factory, we worked with stakeholders to envision the community we would like to create by 2055. This initiative gave employees an opportunity to discuss the future of the region, understand the significance of the Group's existence, and reconsider the importance of the social value we create through our business operations. Going forward, we will cooperate with local citizens and other stakeholders to realize the Miraimachi Sengen, while also working to enhance employee engagement.

Sustainability Report 2023 P.96

the business divisions will take the lead in implementing initiatives to promote company-wide improvement.

Main KPIs	FY2022 Results		FY2026 Targets
Job satisfaction	43%
Pride in work	53%		All at
	70%
Sense of growth	52%

Note: The figures for fiscal 2022 are based on the percentage of respondents who answered

"Definitely" or "Yes" to the top two categories shown in the pie chart on the right.

Q Do you feel pride in what you	Q Looking back on the past year,
are trying to accomplish in your	do you feel that you have
current job?	learned and grown on the job?
1.1%				0.9%
2.3%						2.3%
8.2% 18.4%	7.6% 18.9%
	35.5%				37.0%
	34.4%		33.3%
Aiming for 70%	Aiming for 70%

Photos show staff drawing up the Miraimachi Sengen at two of our branches (Left: Kyoto Branch, right: Niigata Branch)

Daiwa House Group Integrated Report 2023 76