NS United Kaiun Kaisha : Value Creation —Materiality Topics—

PART 2

MATERIALITY TOPICS

NS United Kaiunʼs Value Creation

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TOPIC 1 Safe navigation

Maximizing the Potential of a Diverse Workforce to Build Sustainable Safety Management Systems

Safety constitutes the bedrock of transport service, and our Company has a social responsibility to ensure safe operation. With the objective of passing on safety management systems we have established to future generations, we are stepping up efforts to secure and develop human resources and capitalize on the diverse personnel capacity.

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Takamasa Takami

Executive Officer

Safety Management Group,

General Manager

centers as instructors. We will redevelop hiring plans to match the scale-up plans.

We are also ramping up recruiting activities, targeting a number of foreign nationalities. The Philippines is a stable supply source of seamen, and we hold recruiting sessions for several local schools in cooperation with NSUMPI.* Our selection processes include screening interviews as well as written examinations, with adequate importance placed on personality.

In Vietnam, with only a limited number of supply sources of seamen, we are striving to expand the scope of available sources by including maritime-related schools in addition to colleges that have produced graduates that our Company has hired in the past, and running recruiting sessions at such schools. In addition, we are planning to employ Indian superintendents known for their high levels of expertise in quality management and third-party vessel inspections. Furthermore, we are actively carrying out public advertising for seamen regardless of nationality, creating various opportunities by enhancing corporate presentation briefings, the

Increasing employment and capabilities of non-Japanese seafarers in preparation for a future seamen shortage

In Japan, issues with shortages of seamen will likely become severer given the nation's fast-declining birth- rate. We need to prepare for this situation in advance in order to ensure safe navigation well into the future. To this end, we are increasing the recruiting of non-Japa- nese seamen and expanding their capabilities.

To expand the capabilities of non-Japanese crew- members, we are considering scaling up a number of assignment to onshore functions, such as working in the Tokyo head office in the capacity of a seafarer, on seafarer training teams in various countries, and at training

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Seafarer composition at NS United Kaiun

Vietnamese		Japanese
	7%	Onshore: 50
27%	Offshore: 50

66% Filipino

930

Company website, our corporate profile, and other communications channels.

*NSUMPI stands for NS United Marine Philippines Inc., a Philippines-based crew manning company partly owned by the Company

Promoting assignment of non-Japanese seamen at the Tokyo head office, as a job rotation

We provide a job rotation program at the head office in Tokyo for non-Japanese seamen. It is an approximately three-year course in which participants are posted as superintendents to a number of teams engaged in onshore functions, such as marine affairs, crew manning, and ship maintenance. The program primarily aims to help participants enhance their professional knowledge and skills by broadening viewpoints and mindsets considering the interests of ship management companies as well as operators through performing supervisory duties on land while drawing on their past work experience onboard. Upon completing the course, participants return to work onboard, they will be able to demonstrate

newly acquired skills in managing operations and give instructions to ensure onsite safety from both onshore and offshore perspectives.

The program has accepted a total of 13 participants to date. Their performances have noticeably improved, showing raised empirical value, and being appreciated for facilitating smoother task completion. The program also plays a significant role in promoting diversity and inclusion in the workplace, as it provides participants and employees in the host office with opportunities to have better understandings of different cultures and social practices while engaging in various activities together during the period of the program.

The Seafarer Training Team holds a meeting with the local equivalent division in the Philippines and Vietnam every year to review details of the current learning and training programs and discuss new plans for the pro- grams. We are continuously laying out various training plans, including head office-based work experience pro- grams, onboard OJT, and other training courses, aiming to develop many more competent seafarers.

Initiatives for sustainable safe operation

Upgrade skills of crews

Develop new operation capabilities

Promote DX for vessel management

Improve workplace environment

• Improve and enhance training and education programs
• Clarify promotion standards by rank
• Resume vessel management for liquid cargo shipping
• Prepare for new types of fuel
• Assign non-Japanese crewmembers to onshore operations
• Implement new software for vessel management and improve operations
• Utilize digital database for vessel management
• Enhance harassment prevention measures, set up registry-based compliance advisory service desks
• Improve mental health programs, set up healthcare consulting service desks directly accessible to seafarers
• Ensure that seafarersʼ human rights are respected and improve the well-being of seafarers

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TOPIC 1 Safe navigation

I understand the significance of both onshore and offshore functions in playing essential roles in ensuring safe navigation, and I commit to dedicating my sincere efforts as an NSU family member.

Jeffrey Raphael T. Viray

OJT Master

Posted in the Marine Team, Safety Management Group, Head Office, from October 2019 to January 2023

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I had various questions at first, but I looked at it in a positive way-as a challenge and a way to enhance my knowledge, experience, character and ability to facilitate safe operations on board.

For about three years, I was in charge of various operations: Marine-related matters (conventions, regulations, rules, SMS), CSO duties, supervisor for newbuilding vessels, safety/charterers' inspec- tion, insurance matters, assist for external management company and assist for other Company departments as required or instructed.

I expected a big adjustment because I hadn't experienced working ashore or as an office worker. However, thanks to the support and assistance provided to me by the Company staff, especially my team leader and other colleagues, I was able to make the adjustment and complete my term as a marine superintendent. They provided me with a sense of working together like a family.

The Company is well established but if the board is thinking about adding more foreign national shore workers, we should have some of the Company files, programs etc. translated into English.

This program of the Company greatly helped me to develop various abilities that are contributing factors for ensuring greater safety. Since

there are too many to mention, I will share below some of the ones that I think are very important:

1. Knowledge - It provided me with a clear and complete idea about the effects of ensuring safe operations on board for my own and my shipmates' safety, for the company's reputation and for the customer's satisfaction amid numerous challenges including the outbreak of COVID-19.
2. Communication with company - My confidence in my ability to communicate openly/freely with each PIC of the Company has improved.
3. My personal outlook - It made me understand the difference between working on board ships and working in an office. Due to this experience, I better appreciate how both play a significant role

in ensuring safety, but I also now see the most important thing is to work together as a family, which means working with heart ... for the continuous growth and expansion of our "NSU family."

I am now scheduled to return on board as OJT master this June (2023) and hopefully, on board as well, I can fulfill the purpose of my deployment at our Tokyo headquarters.

Mr. Viray gained valuable work experience at the head office that will help him work, either on land or at sea, and give him a strong advantage in building a career path.

Zoilo H. Paa

President

NS United Marine Philippines Inc.

The objective of sending an superintendent to serve as a trainee at the Tokyo head office was for him to acquire skills and absorb the company culture, to develop his knowledge around technical support for vessels and to get a full understanding of overall shipping operations.

I worked in Tokyo for nearly 3 years. With the help of my colleagues, I learned a lot and developed my knowledge and skills as a technical superintendent. I also met people, especially businesspeople connected to shipping. My work experience in Tokyo made me aware of and understand how shipowners will react and gave me the ability to relate to that and to respond to whatever circumstances arise as needed.

Mr. Viray is now ready to be our OJT master, a shipowner's representative ready to maneuver the vessel safely, promptly, efficiently and economically; ready to comply with international rules of the sea and port regulations. He is also able to become a marine superintendent in Manila if he wants to someday.

The experience can be advantageous for either working in the office as a superintendent or returning to a life at sea, having become fully aware of the essential needs for the safe operation of ships in compliance with international rules and regulations and within the operational cost parameters.

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I am aspiring to becoming an engineer in Vietnam, where there are only a few women working in the profession at present. I work onboard as a trainee to build the necessary skills, and am receiving support from many people.

Nguyen Thi Thai Chau

Engine Cadet

To prepare to become a licensed engineer, she is engaged in the 12-month onboard training program. The program started in December 2022 on board of NSU BRAZIL, and it has reached its seventh month at the time of this publication.

In September 2022, I joined the VINIC*. After completing the training course, I officially embarked to start work on December 2022. Maritime transportation is a growing industry, not only in Vietnam, but worldwide. The number of female crewmembers who work on board vessels is very small, however, especially in Vietnam. When I chose to work in the maritime industry, my mother was the first one to support me, and then my uncle, who is a seafarer himself, introduced me to this job. Learning and working on board has been a dream come true for me.

I'm currently learning and working on board under the supervision of the first engineer. I am learning about the duties of the third engi- neer-operation and maintenance of equipment and machinery- under the guidance of the third engineer. In addition, I also participate in the team of the second engineer to study the methods of operating and maintaining machines under the instructions of the second engi- neer. I assist the third engineer in the engine room, and I support the chief engineer and second engineer as well. I am always excited and never get tired because I am always learning more things. Day by day, my knowledge is improving and will get better.

My current position is engine apprentice. I will acquire as much knowledge as possible to become a third engineer in the near future. I'll have a one-year contract as a cadet, then I'll get a license. Next, I'll try to get promoted to third engineer. If everything goes well, my ultimate target is to become chief engineer in about 10 years.

Working onboard as a female is difficult and is my biggest challenge. The work environment and interpersonal relationships are both factors in this job. In particular, big and heavy tools are the largest barrier for me. However, I can overcome such problems thanks to good workplace relationships with those around me, who offer kind help to me when in need. Crewmembers on the vessel are all cheerful and friendly, and I enjoy working and living with them. They teach me and help me a lot in my work and they provide me with a lot of knowledge. I feel lucky for everything that I have received in this environment. To make the workplace more diverse and effective, I think first about my own responsibility. Each person needs to be responsible for their work in order to achieve a high level of efficiency and create a more comfortable workspace.

*VINIC refers to The Company for Training, Labors Supply and Maritime Services Ltd., a Viet- nam-based crew manning company and a partner of the Company.

Conducting

seamen happiness surveys

As a result of the COVID-19 pandemic, many crewmembers suffered from very stressful work conditions due to rigorous embarkation/disembarkation controls and restricted opportunities to go ashore. In this context, we conducted happiness surveys of all crewmembers on our fleet in February 2023.

The survey asked questions about a sense of professional engagement and the Company's welfare benefits for onboard personnel, and respondents entered their specific suggestions and requests for improvements in a free format. We will conduct this survey on an ongoing basis. Survey results are used to understand crewmembers' thinking and requests accurately and improve the well-being of our crews in the future.

Conducting safety campaigns

In fiscal 2022, we held a safety campaign with a focus on preventing casualties, injuries and illnesses onboard under the slogan: "No accidents, no injuries, no illness, disembark in good health and with a smile!" Visiting vessels to collect the opinions of crewmembers onboard was restricted due to COVID-19, but now we have returned to this practice for the first time in three years with infection prevention measures taken to ensure the safety of each vessel visit, in addition to continuing to distribute video messages from the president and board members to the entire fleet. Based on our recognition of the importance of close communication between land and sea functions and perspectives shared to strive for safety navigation, we will continue the safety campaign while making improvements.

Board members and others visit vessels in turns and hold a small group discussion

Safety campaign calendar for preventing occupational accidents

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