Human Capital

As a company with its roots in trading and distribution, we are profoundly aware of the importance of people. Likewise, we believe that human capital are also at the heart of value in manufacturing, an industry in which we are becoming increasingly involved through our group companies. When identifying material issues (materiality), the ALCONIX Group conducts analyze from ESG (environmental, social, and governance) perspectives but also examines all relevant factors through the lens of human capital ("H"), which it regards as its most crucial evaluative criterion. Moving forward, we will establish a concrete action plan with the aim of strengthening our human capital; improving employee salaries and benefits; and creating environments that allow our personnel to maximize their abilities through the systemization of education and training, the delivery of opportunities that enable them to leverage their individual talents and characteristics, and the introduction of evaluation systems.

Human Capital

Overview of the Human Resource Strategy

Strengthening the Foundation of Human Capital Management

Basic Stance

To maximize the value of the people who support our management strategy, we are continuously working to improve, expand, and provide compensation, education, and opportunity—our “three keys.” As part of strengthening the foundation of our human capital management, we have taken the approach of first raising base salaries. We have clearly articulated our policy of replacing the conventional approach of raising wages only after productivity has improved with a proactive wage increase strategy to attract talented people and enhance the Company's competitiveness. We expect that by retaining these valuable people and enabling them to perform to their fullest potential, they will create added value that exceeds our investment. In addition to regular salary increases, we aim to create a virtuous cycle across the Group by combining various initiatives related to education and self-directed career development to generate synergies, thereby building a strong organization capable of responding flexibly to change.

HR strategy for Human capital development and productivity improvement

Diversity, Equity, and Inclusion

The ALCONIX Group respects the diverse perspectives and work styles of its employees and promotes the creation of appealing workplaces where all staff members can fully demonstrate their abilities.

Creating a Sustainable Organization Where Diverse Talent Can Thrive

Creating a Comfortable Work Environment

We provide all employees with 20 days of annual paid leave regardless of their length of service. (Employees hired mid-career are granted paid leave on a prorated basis during their first year according to their month of hire.) We have set a target of achieving a 100% paid leave utilization rate and are working to further encourage employees to take paid leave. The paid leave utilization rate for FY3/26 was 82.9%.
In addition, as a company-wide policy, we are continuously working to reduce overtime through operational efficiency improvements and workstyle reforms. As a result, average monthly overtime hours declined to 12.8 hours in FY3/26 and have continued on a downward trend.

Pregnancy and Childcare
Family Care
Medical Treatment
for Illness or Injury
Common

Special full flextime system for childcare and nursing care*

Special teleworking system for childcare and nursing care*

Accumulating Paid Leave System

Up to 60 days of unused paid annual leave can be accrued and used when taking leave for childcare or nursing care.

Employees may use the special full flextime system and special teleworking system for childcare and nursing care simultaneously.

Childcare support

Special paternity leave

A new father can utilize special paid leave until the calendar day immediately after the date upon which eight weeks have elapsed following either the actual or expected birth date of his child.

Child nursing care leave (unpaid → paid)

An employee can receive special paid leave when his or her child is injured, sick, or needs to visit a medical facility.

Shortened working hours/exemption from overtime → Extension of period of eligibility
Limitations on overtime and late-night work

Nursing care support

Support seminars for balancing professional responsibilities with nursing care

Individual nursing care consultations

Handbook for Balancing Family Care and Work

General Employer Action Plan Based on the Act on Advancement of Measures to Support Raising Next-Generation Children

We have established a General Employer Action Plan Based on the Act on Advancement of Measures to Support Raising Next-Generation Children (three-year plan period: April 1, 2024 to March 31, 2027).

Target
  • Monitor the utilization and outcomes of the work-family balance support systems for childcare and family care and examine whether any improvements are needed (non-consolidated).
  • Achieve an average of at least 17 days of annual paid leave taken per employee each year (non-consolidated).
  • Achieve a 100% childcare leave utilization rate among male employees (non-consolidated).

As a senior retention measure to address the decline in the working-age population, we abolished the salary reduction previously applied when employees reached the age of 62 and introduced a reemployment system after the mandatory retirement age of 65. By creating a work environment in which all employees can work comfortably, we are fostering a workplace culture that enables everyone to fully demonstrate their abilities. Going forward, we will continue initiatives aimed not only at supporting eligible employees but also at promoting understanding among their colleagues and managers.

Promoting the Active Participation of Women

To establish and maintain an organizational structure under which all employees can contribute, we will encourage and facilitate active participation from all our female employees. Meanwhile, we will review existing workstyle-related systems and introduce new systems as needed while proactively striving to provide ongoing support for the career development of female staff.

General Employers Action Plan Based on the Act on Promotion of Women’s Participation and Advancement in the Workplace

We have established a General Employer Action Plan Based on the Act on Promotion of Women's Participation and Advancement in the Workplace (five-year plan period: April 1, 2025 to March 31, 2030).

(Non-consolidated)

Task
  • Promote the development of female employees from a medium- to long-term perspective in order to increase the number of female leadership role models.
  • Promote initiatives aimed at realizing productive workstyles with a clear sense of balance.
Target
  • Increase the proportion of women in managerial positions to 10.0% by FY3/27 (non-consolidated).
  • Reduce average monthly overtime hours for all employees to 15 hours or less during the plan period (non-consolidated).

Overtime hours = hours worked in excess of the prescribed working hours (7 hours and 15 minutes)

Gender Pay Gap

In July 2023, we unified general and career track job categories to increase opportunities for women and are actively recruiting and promoting women to serve in managerial positions. Notably, there is no pay gap between men and women in the same job category

Human Capital Development and Education & Training

The ALCONIX Group believes its people are the source of the value it creates and accordingly emphasizes the importance of the unique abilities and individual characteristics of each and every employee. Moving forward, we are committed to developing highly specialized talent capable of "drawing the future of our dreams," in line with our Corporate Slogan.

Human Capital Development Program

We will develop and expand our human capital development program by systematizing our education and training, thereby enabling all employees to leverage their diverse perspectives and experiences and achieve their full potential.

Education and Training Expenses (Total and per employee) and Hours of Training Attended (Total and per employee) over the Past Three Years

(ALCONIX only)

  Unit FY2024 FY2025 FY2026 Targets
Education and training expenses (per employee) Yen 79,000 119,000 92,000 180,000
Total training hours (per employee) Hours 15.5 18.6 14.3 18.6 or more

We have introduced education and training programs that support self-directed skill improvement and career development so that each employee can cultivate the ability to “dream and transform that dream into reality.”
To support sustainable growth of our employees, we expanded our tiered program in fiscal 2022 and added more opportunities to learn skills and gain knowledge appropriate to the number of years that they have been with the Company and their respective role.
In addition, our training system includes a program that will develop employees into the type of people the Company seeks.
This system also features a suite of customized training that includes financial planning seminars, support seminars for balancing professional duties with caregiving responsibilities, and health support seminars aimed at making work rewarding, pleasant, and healthy.
In the future, we will build upon this system to fully maximize the ability of our employees to create value throughout the Group.

Actual Participation in Training Programs

Short-Term Overseas Training(September 2025)
Group Company Factory Tour

Measures for Improving Motivation and Performance

We provide employees with opportunities for transfers to other positions and take on challenges if they wish and in keeping with their abilities, and also implement a variety of measures to provide them with a comfortable and rewarding work environment.

For Employees' Medium- to Long-term Career

We have also established systems that allow employees to take the initiative to define and achieve their career goals. Through interviews, employees discuss and share their medium- to long-term career goals and skill development plans with their supervisors. The outcomes are then used for determining how to proceed with further training, career development, and job placement practices. Our policy is to create a work environment that empowers employees to display their abilities, regardless of their gender, age, nationality, or otherwise, leading to greater corporate value over the long term.

Career Aspiration Declaration System We have implemented a system that encourages employees to regularly review their career paths and engage in skill development and self-improvement. This initiative is targeted at motivating employees to take an active role in shaping their own future careers. The company continuously tracks these aspirations so that we provide tailored support for professional growth, including skill enhancement, job transfers, and task assignments.
Transfer Request Declaration System In addition to the "Career Aspiration Declaration System," we have introduced a mechanism that allows employees to directly request a transfer without involving their managers. When such a request is made, the General Affairs and Human Resources Department conducts a meeting with the employee to understand their preferences and assess the needs of potential transfer destinations. This system helps us support diverse career opportunities and pathways for our employees.

Improvement of Salary Levels and Other Benefits

Implemented Base Salary Increases for Four Consecutive Years

In July 2025, we implemented an approximately 5.5% wage increase by combining a base salary increase with regular annual salary increases, exceeding the rate of increase in the consumer price index. In addition, to continue attracting talented people who will support the Company's sustainable growth, we increased the starting salary for new graduate hires joining in 2026 by 4.9% to JPY320,000.

Employee Stock Ownership Plan

As part of the ALCONIX Group's employee benefits program, we provide a 20% incentive on employee contributions. The plan provides employees with an opportunity to take an interest in the Company's growth and management while supporting medium- to long-term asset building.

Introduction of an Employee Incentive Plan (RS Trust) Compensation System

To foster employees' sense of belonging and strengthen their awareness of participation in the Company's management, we introduced an Incentive Plan (RS Trust) compensation system in May 2024.

Launch of a New Employee Association

An organization (Employee Association) aimed at creating a better company through discussions with management on labor conditions, the work environment, and the Company's organizational management was launched under a new structure in FY3/25. As part of the Employee Association's activities, it conducted study sessions to deepen employees' understanding of the Company, social gatherings for employees, opinion exchange meetings with management (CHRO), and internal greeting campaigns.

Employee Engagement Score

Through the annual employee survey, we quantify the overall attractiveness of the workplace, including employee satisfaction with the work environment and their willingness to recommend the Company. As this score is an important indicator directly linked to productivity improvement, we will continue to analyze the survey results and promote multifaceted initiatives to further enhance employee engagement.

Employee Turnover Rate

Since the cohort of new graduate hires who joined the Company in April 2021, the three-year retention rate for new graduates has remained at 100%, while the overall employee turnover rate (excluding mandatory retirements) has remained relatively low.

Health Management

In accordance with the ALCONIX Group Health Declaration, we will ensure that our employees can perform to their full potentials by enhancing our human capital development and establishing and maintaining supportive environments. The physical and mental health of both our staff and their families will be crucial to achieving these goals. Accordingly, we will promote proper health management by creating workplaces in which all personnel can perform their duties with enthusiasm and vitality.

Health Management Promotion Policy

Organizational structure

Collaboration with health insurance associations—specific health guidance, sharing of information regarding health-related issues, etc.

Cooperation with industrial physicians and occupational health nurses—concrete initiatives aimed at addressing health-related issues, etc.

Systems and Measures

Addressing issues related to long working hours, mental health concerns, and infectious disease prevention

Education for managers and regular staff—mental health, exercise, diet, etc.

Involvement in specific health guidance—initiatives facilitating the availability of opportunities for implementation

Activities targeting the improvement of dietary habits and greater opportunity for physical exercise

Measures for the maintenance and promotion of women's health

Identification of issues and the application of practical solutions

Smoking cessation measures

Measurement of health management effectiveness

Specific Health Management Initiatives

Health Maintenance and Promotion Measures

  • Establishment and furnishing of health consultation services
  • Guidance on the prevention and correction of lifestyle-related diseases, etc.
  • Distribution of information regarding health-related seminars and events
  • Membership-based employee benefits

Implementation and Promotion of Health Checkups and Medical Examinations

  • Recommendation of medical checkups to unexamined individuals
  • Follow-up exams following receipt of medical checkup results
  • Employee health checkups
  • Influenza vaccinations(subsidized by ALCONIX)

Health Guidance

  • Acceleration of the specific health guidance cycle and disbursement of relevant recommendations and guidance (in collaboration with health insurance associations and medical facilities)

Improvement of Health Literacy

  • Seminars Tailored to Health-related Issues

External evaluations

"Kurumin" Certification:

We have received the Kurumin Certification from the Minister of Health, Labour and Welfare, in recognition of our initiatives to support childcare.

Certification as a “2026 Health & Productivity Management Outstanding Organization”

We have received certification in the large enterprise category under the Health & Productivity Management Program, administered by the Ministry of Economy, Trade and Industry. We draw upon our Health Management Promotion Policy to practice health management and create an environment where everyone can work comfortably, feel fulfilled in their jobs, and develop a strong sense of individuality.