Medium-Term Management Plan artience 2027|Integrated Report 2025 Human Capital Strategy: Maximizing the Power of Individuals under the "People-oriented management"

At artience, we place people at the core of all our corporate activities and drive our business growth. By drawing out and utilizing the strengths of each and every employee, we will increase the corporate value of the Group. This is a reflection of our Corporate Philosophy (management philosophy) of "People-oriented management".

The Group's Medium-Term Management Plan artience 2027 is based on the following principles: "Transforming into existing high-profit businesses," "Creation of strategically important business groups," and "Transforming the management base." Now that we are aiming for major changes under the banner of "GROWTH," it is "people" that will support it. Based on the belief that business planning and human capital are inseparable, the artience 2027 Human Capital Strategy will focus on the following three areas:

The first is to secure human resources to create business growth. In order to achieve our business goals, it is essential to promote the shift of human resources within the Group through internal recruitment and the use of the career challenge system in new technology areas, such as the battery and semiconductor fields, as well as to acquire human resources from outside the Group with knowledge that has not been available within the company so far. In addition, in order to respond quickly and rapidly to changes in the environment, we recognize that it is also an issue to secure specialized human resources in administrative departments such as legal, finance, and public relations, as well as production site staff who support the manufacturing industry on the front lines.

In the second area, "Promoting the Challenges and Growth of Employees and Fostering a Corporate Culture of Challenge," we will accelerate human resource development and corporate culture reform by collaborating with incubation centers that explore new businesses. In fiscal 2024, we launched a new personnel system, shifting to an evaluation system that places greater emphasis on individual abilities, achievements, and willingness to take on challenges.

The third is to create an environment that makes the most of the diverse abilities of individuals. We will create an environment in which each and every employee with a variety of backgrounds can play an active role. The gender ratio of employees has been an issue for our company for many years, but in 2025, 41.2% of new graduates will be hired. On the other hand, the ratio of female managers is still low at 5.8%, and continuous efforts are required. In addition, with overseas sales accounting for more than 50% of our sales, the use of global human resources is also an important key.

"Create value that resonates with the senses, build a future where all people can live enriched lives" is Brand Promise the promise we make to society, and at the same time, it is the very image we expect from all employees. In other words, it contains the message of "what kind of human resources and the future we want to aim for."

With a diverse workforce, it is not easy for everyone to understand these principles equally and put them into action. For this reason, the president personally visits each site and engages in direct dialogue with employees in the form of "roundtable discussions," which were held at 14 locations in Japan and overseas in fiscal 2024. In addition, we hold workshops for department heads and department heads to incorporate our philosophy into department policies. Many participants commented, "It was a good opportunity to rethink how to embody the higher-level policy in their own department," and I feel that there is a certain level of success. In fiscal 2025, we plan to expand this initiative to overseas bases.

One of the reasons behind the revision of the personnel system is to deepen the connection with the philosophy and management plan. In the previous system, even if employees took on challenges that went beyond the boundaries of their daily work, there was not enough of a system to properly evaluate them. The new system is designed to achieve more balanced treatment according to the "attitude to take on challenges" and "results."

In particular, in order to improve the quality of goal setting, which has tended to be uniform, we held a "Goal-Setting Skill Improvement Workshop" for 217 section managers in January and February 2025. Depending on the goals that serve as the starting point for evaluation, the way you approach your work will change. We will establish a system in which section managers who are close to the field can support their subordinates in setting effective goals.

The introduction of a system to promote specialists to executive positions was also a major step. Not all employees need to aspire to a managerial/generalist career, but rather a path to build a career around expertise. We want young employees to feel that the company recognizes their expertise and makes use of it.

The overall picture of human capital strategy

artience group will continue to grow its business by placing "people" at the core of all its corporate activities. By having each and every employee maximize their abilities, we will maximize the corporate value of the entire Group.

artience 2027 Human Capital Strategy: How to Quantify Initiatives

The revitalization of human resources and organizations on a global scale is an extremely important theme for artience today. In fiscal 2024, the number of domestic employees will fall below 3,000, and the number of overseas employees will exceed 5,000 for the first time. This trend is likely to continue. Although the main battlefield of our business is clearly overseas, it is also an issue in terms of human resources that the idea of Japan is still deeply rooted. Even in the countries where we operate, the Group's local subsidiaries are still often viewed as "small and medium-sized enterprises (SMEs) owned by Japanese foreign companies," and the employees who work there often lack awareness that they are working for artience group, a global company.

However, in countries such as Turkey, the United States, China, and Singapore, there are an increasing number of cases in which local employees serve as top executives and achieve good results. A former CEO in Mexico is currently leading the U.S. base, and the circulation of human resources across countries within the Group has begun.

artience is no longer just a Japan of people, even if it's a Japan company. Regardless of ethnicity or nationality, local management should be entrusted to human resources who can share our philosophy and policies. In order to develop human resources who can play an active role globally, in fiscal 2025 we will implement a training program for overseas executive candidates and training for current executives in Japan.

In fiscal 2024, we also launched the Global Support Unit (GSU) to strengthen human resource support for our overseas subsidiaries. We support overseas bases from administrative aspects such as legal affairs and general affairs, with a focus on human resources, and in particular, we plan to take on missions such as the development of global human resources and international transfers in the future.

I believe that our mission as human resources will continue to be to embody the concept of "People-oriented management." "Respect for human beings" is a word that can be interpreted in many ways, but I see it as "creating an environment where each and every employee can make the most of their abilities." In order to achieve this, we will work on all areas such as understanding, assigning, developing, evaluating, and treating human resources, and organically link each of them.

In Japan, a certain level of foundation has been laid. The most important theme for the future is how to make our overseas employees, who are still increasing over 5,000, feel that they are part of the artience group and expand their field of activity. It is necessary to clarify the path to develop human resources who can share a philosophy across borders and aim for growth together.

We will draw out the potential of all employees on a global scale and make the most of it. We will continue to take on this challenge as human resources.