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Materiality

To realize the Basic Policy on Sustainability, the Group prioritizes its materiality from an ESG perspective, and implements it towards specific action targets and KPIs.

Material issues

Materiality action plan

[Medical service supply]

	Initiatives	Action plan/target (KPI)	FY2022 Results	FY2023 Targets
Support for sustainable medical service system	Support to increase patients through utilization of information	Make proposals to increase patients based on market research 50 proposals per year	55 proposals (110%)	60 proposals
Support for sustainable medical service system	Support hospital management through strategic procurement of medical devices	Propose improved customer earnings by narrowing devices used or reducing devices close to sterilization deadlines etc. 110 proposals per year	155 proposals (141%)	110 proposals
Higher penetration and improved accessibility of minimally invasive medical care	Start up and support medical workshops and research activities centered on customer facilities	Support to enhance medical skills of doctors Set up external study groups and seminars Support doctors to study abroad or to participate in academic conferences
	Support doctors to learn and use medical devices adequately Provide latest medical information	Plan workshops and study groups 55 plans per year	67 plans (122%)	55 plans
Promotion of DX in the medical industry	Support for promotion of customer DX	Make SINZOKUN (unique medical device management system) connectable with external systems and applicable to new technology including RFID to contribute to higher operational efficiency and productivity of customers Operate SHINZOKUN on cloud in FY2022 Applicable to RFID in FY2024	SHINZOKUN has been partially operated on cloud	Continue promotion of SHINZOKUN on could Examine business opportunities
Innovation in the medical industry	Create new businesses collaborating with medical venture enterprises and start-ups	Collect information, exchange information with external organizations and perform feasibility studies in internal section 4 feasibility per year	4 feasibility studies (100%)	4 feasibility studies

[Supply chain]

	Initiatives	Action plan/target (KPI)	FY2022 Results	FY2023 Targets
Sustainable medical device supply	Promote logistics revolution	Concentrate logistics and improve operational efficiency as a result of separation of sales and logistics due to the start of WIN Heart Gate	Construction of Win Heart Gate was completed in November Test run of WIN Heart Gate has started since February 2023	Continue test run and expand the scope for application with full-scale operation of WIN Heart Gate scheduled in August 2024
		Develop a new sales and inventory control system		Continue system development and conduct various tests for the launch in August 2024
		Secure traceability and the stable supply of medical devices utilizing RFID		Preparation (tests and evaluations) for utilizing RFID with operation staring from August 2024
Resilient supply chains	Enhance business continuity structure with respect to system obstructions and infectious diseases	Update BCP factoring in a strategy for infectious diseases	Started updating BCP	Continue considering
		Review procedures in case of system obstructions	Started reviewing the procedures	Continue considering
		Practice and review BCP plan		Once a year

[Support for employee participation]

	Initiatives	Action plan/target (KPI)	FY2022 Results	FY2023 Targets
Human resource development to support sustainable corporate activities	Enhance human resource development and education programs	Promote increase in cardiac device representatives (CDRs) FY2022 130	124	140
	Prepare and review working environment for promoting work style innovation	Promote flexible work style Utilization rate of staggered working hours and flextime FY2022 60%	60%	65%
	Enhance systems for promoting employee growth including reviewing the performance assessment system	Enhance education system Utilization rate of level-based education lessons and education tools for self-enlightenment FY2022 50%	58％	60%
Promotion of diversity to enable employees to demonstrate their skills and talents
	Promote employment of female employees, foreigners and employees with disabilities Maintain or increase percentage of female managers	Maintain 25% female employment ratio	39％	25%
		Percentage of promotion-to-manager recommendations for female employees: 20% (3 years average)	31％	20%
		Promote active female employee participation with KIRARIS (a support team for female employees)
		Participation of female employees in KIRARIS meetings: 80%	95％	80%
		Percentage of male employees taking childcare leave: 10%	37％	45%
		KURUMIN certification in FY2024 (an enterprise regarded as “childcare supportive” by Ministry of Health, Labour and Welfare)	Continue promoting	Continue promoting
Respect for human rights	Enhance education on human rights	Thorough education on compliance and human rights Percentage of employees attending lectures: 100%	100%	100%

[Environment]

	Initiatives	Action plan/target (KPI)	FY2022 Results	FY2023 Targets
Contribution to global environment	Promote decarbonization	Reduce unused and discarded medical devices Reduction of entrusted inventories by central inventory control at WIN Heart Gate Precise inventory control with new sales and inventory control system	Percentage of discarded medical devices: 5.5%	Percentage of decrease in discarded medical devices: 2% in H1 3% in H2
Contribution to global environment		Promote hybrid car introduction Target 50% in FY2024	33％	50% in FY2024
Decarbonization		Management of “clean energy” by installing solar panels and measuring power generation	Solar panels were installed at WIN Heart Gate in November 2022	Solar panels will start operation at Shin-Otsuka Building from October 2023
Decarbonization		Paper-less operation Electronic administrative procedures	Introduction of expense calculation Compliance with the Act on Electronic Preservation System for Books and Documents Related to National Taxes	10% cut in annual print volume

[Corporate base]

	Initiatives	Action plan/target (KPI)	FY2022 Results	FY2023 Targets
Succession/continuity of business from a medium- to long-term perspective	Prepare succession plan	Formulate programs for next-generation management personnel	Formulated structure according to the plan	Training of next- generation management personnel based on the program
Information security	Implement information security measures to ensure stable operation of sales and inventory control systems	Reinforce cyberattack countermeasures Education and training through e-learning (once a year)	Continuously monitored with introduction of ransomware countermeasures Conducted training for targeted e-mail	Reinforce cyberattack countermeasuresbr Education and training through e-learning (once a year)
Compliance	Enhance internal education framework	Enhance internal education framework	Prepared to introduce new e-learning tools	Review of new education materials and provide education through e-learning (once a year)
Secure resilience for disasters	Enhance BCP in the event of disasters	Practice and review BCP plan (once a year) Training using safety confirmation tools (twice a year)	Updated initial response manual and started examining overall flow Conducted safety checks twice	Practice and review BCP plan (once a year) Training using safety confirmation tools (twice a year)

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