Support diverse talent with motivating challenges and job satisfaction

• Challenges
• Our policy
• Goals
• Responsible Executive (as of April, 2022)
• Activity Promotion System (as of April 2022)
• Grievance mechanism
• Demonstrating ability and fostering motivation (developing talent)
• Securing diverse human resources (promoting diversity)
• Creating healthy working environments (reforming working styles)

Challenges

• Demonstrating ability and fostering motivation (developing talent)
• Securing diverse human resources (promoting diversity)
• Creating healthy working environments (reforming working styles)

Relevant stakeholders

• Direct: Employees, local communities, suppliers
• Indirect: Shareholders and investors, creditors, NGOs, industry groups

Our policy

We seek individuals who can equip themselves with the medium- to long- term perspective of a tire and automotive parts manufacturer, think creatively and flexibly, and show initiative and ambition. In these rapidly changing and uncertain economic and social times, one of our priority issues is securing a foundation for diverse talent who support our company’s business management and create high added value.

• Toyo Tire Group Charter of Corporate Behavior

Global Human Rights & Labor Policy

The Toyo Tire Group established the Global Human Rights & Labor Policy in January 2019. This policy endorses the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the 10 principles of the United Nations Global Compact. As our Group business globalizes and our stakeholders diversify, we strive to carry out our activities in a way that respects the human rights of everyone involved in our corporate activities, including people in our workplaces, at our suppliers, and within the communities where we operate. This will help us contribute to creating an inclusive society that supports everyone, including socially vulnerable people, by protecting them from exclusion, conflict, loneliness and isolation. Group employees also recognize that they may potentially cause, contribute to or be complicit in adverse impacts on human rights through their own activities, and work to prevent this.

〈 Human rights and labor due diligence process in the workplace 〉

1. Identify and evaluate actual adverse impacts and potential risks in the workplace
2. Take remedial action on adverse impacts and work to prevent potential risks from occurring
3. Monitor initiatives
4. Disclose information on initiatives to external stakeholders

• Global Human Rights & Labor Policy, introduced in January 2019 (Japanese version)

See below for English and Chinese versions

• Global Human Rights & Labor Policy
• 全球人权与劳动政策

Goals

To respect human rights in the workplace, eliminate all forms of discrimination, and promote diversity.

• General Employer Action Plan Based on Japan’s Act on Promotion of Women's Participation and Advancement in the Workplace
• General Employer Action Plan Based on Japan's Act on Advancement of Measures to Support Raising Next-Generation Children

Responsible Executive (as of April, 2022)

Director, Corporate Officer and Vice President of Corporate Headquarters

Activity Promotion System (as of April 2022)

Corporate Headquarters is responsible for promoting initiatives in this area. They consult the Organization & Personnel Committee when necessary, and report progress to the Sustainability Committee.

Grievance mechanism

• Reporting hotline (whistle-blowing system): For executives, employees and suppliers
• Customer Relations Department: For customers (consumers) and local communities
• Online inquiry form: For customers (consumers), shareholders and investors, and NGOs
• Labor-Management Council Meetings: For employees
• Harassment reporting hotline: For employees

Demonstrating ability and fostering motivation (developing talent)

Education and training

We sees employees as the most important key resource to support continued business growth, and recognizes the importance of developing talent. As an example of one of our recent initiatives, we updated our training system to further boost the effects our new personnel system launched in 2021 has on talent development. We established training to match the objectives of this new system, including level-specific training, selective training, diversity training, evaluator training, instructor training and supervisor training at plants. In addition, we launched a self-development platform where employees can take courses online at their convenience to acquire desired skills or required knowledge. So that employees can feel motivated in working toward their future goals, we have also defined a company career development policy, creating career path plans for each department and following them throughout the entire company when carrying out personnel changes. We also periodically review employee career development and provide counseling with supervisors.
Each Group company is dedicated to developing talent based on the educational policies that address their own business challenges.
For example, Toyo Rubber Chemical Products (Thailand) Limited runs training tailored to each employee level and job type, such as leadership training for supervisors and auditor training for internal quality management, as well as compliance training and teamwork training to boost operational efficiency for all employees.

Developing talent with technical expertise

With an eye toward a future predicted to have dramatically different market conditions through a mobility revolution, we are focusing on the development of professionals who can transform difficulties and crises into opportunities for sustainable growth. To develop the talent that supports our Group’s essential technological innovations, our education and training emphasizes basic knowledge, external company relations and the passing down of technology.
Toyo Tire Corporation aims for talent development that, through company-wide level-specific education, equips employees with the logical thinking and facilitation skills that are key in research and development, and problem-solving skills and innovative ability based on customer needs-oriented thinking. Our technology departments also provide training to young employees to acquire technical expertise, and promote annual talent development to achieve the mission of each organization.
Since 2020, the technology departments’ educational curriculum has included a course on the SDGs. Through group work, participants recognize the role of technological development in resolving the various social issues relevant to our business. At our production departments, we are also focusing on issues such as improving the inspection skills of quality control personnel and developing the multi-tasking skills of operators.

Training held in FY2021 (Toyo Tire Corporation)

• Basic courses for young employees by mid-level employees
• Competency development courses for mid-level employees by external lecturers
• Participation in external training courses

Training held in FY2021 (Toyo Tire Corporation)

By level

Name	Eligibility	Hours to complete	No. of participants
New recruit training	New recruits	96	31
Follow-up training	First-year employees	18	35
Brush-up training	Second-year employees	18	33
Logical thinking training	Fifth & sixth-year employees	12	40
Presentation training	Employees who took logical thinking training	12	40
Assistant manager candidate training	Assistant manager candidates	Not held	－
New manager training	New managers	16	25
New general manager / representative training	New general managers / representatives	96	31
Section Leader / assistant supervisor training	New section leaders / assistant supervisors	18	35
New supervisor training	New supervisors	18	33

Employee opinion survey

To take a snapshot of our organizational culture, starting in 2021 we have begun running employee opinion surveys. The results are shared with employees, and used to identify challenges for which workplace action plans are established at each headquarters based on a company-wide improvement policy. We are tracking implementation and will continue to regularly apply the PDCA cycle in order to steadily strengthen our organizational culture.

Activities: Securing diverse human resources (promoting diversity)

Securing diverse human resources (promoting diversity)

Toyo Tire Corporation introduced a new personnel system in April 2021 with the goal of securing and developing talent that supports sustainable growth in the face of societal changes, and maximizing our organizational capabilities through a diverse mix of employees.
This new personnel system focuses on:
1. Ensuring that evaluation and treatment are based on achievements, such as how well employees match the profile of what the company seeks and fulfill the expected roles for each level, and progress made toward key fiscal year targets; and
2. Establishing an institutional base that responds flexibly to diverse job and career preferences, and enables all employees, whether in specified or general employment, to make the most of their attributes and succeed.
We will further reinforce our corporate culture of nurturing diverse talent that sees change as an opportunity to challenge and succeed.

Employment situation

The Toyo Tire Group is committed to ensuring fair employment practices and treatment of employees, and to creating workplaces where a diverse team members can flourish regardless of nationality, gender or other characteristics.
In our human resources recruitment, we strive to secure a diverse range of talent across the world, including by recruiting both new graduates and mid-career candidates, rehiring retirees, and employing people with disabilities. Since 2018, we no longer set recruitment targets for women and non-Japanese candidates when hiring new graduates, and switched to a policy of fair, unbiased evaluation and recruitment for all talent.

Diversity and equal opportunities

To promote the empowerment of all employees, we have established different types of personnel systems and a talent development plan, and offer career counseling for each employee. We also offer training to improve awareness on a variety of topics, such as e-learning on diversity and inclusion.
One notable project promoting diversity is the human resources empowerment committee run by Toyo Tire Japan Co., Ltd. since 2016. Established to promote the career advancement and empowerment of female employees in particular, it has since been organized as an initiative for all employees in recognition of the fact that the active participation and improved awareness of managers, supervisors and male employees is also key. The company has been proactive in reviewing job descriptions, responsibilities and authority with the career advancement of female employees in mind, and the number of women in management positions has increased as a result.
Additionally, Toyo Tire Logistics Co., Ltd. continuously strives to provide working environments that help foster a positive outlook for the future and greater motivation toward work in people with intellectual and developmental disabilities. They are continuing initiatives focused on expanding each employee’s potential by encouraging them to challenge new duties that allow them to harness their talents, with the goal of promoting better mutual understanding and working environments. Expanding their job scope and increasing opportunities to communicate with colleagues both contribute to creating working environments where diverse talent can flourish regardless of disability, and help us secure human resources. We will continue striving to create workplaces where all employees have equal opportunity. We are also fostering workplaces that encourage everyone to take on challenges regardless of gender, providing support for career development that takes into account diverse values and lifestyles, and revitalizing workplace communication in order to offer such support. As part of our efforts to create gender-balanced working environments, we have reviewed our company dress code at some locations, including our headquarters, to allow male employees to wear business casual. Furthermore, in principle, the Group ensures equal pay for men and women.

New hires at Toyo Tire Corporation (full-time employees including mid-career hires)

Total	88
By age	Under 30	78％
	30-50	22％
	Over 50	0％
By gender*1	Male	93％
	Female	7％

Employee diversity at Toyo Tire Corporation (full-time employees)

Total	3,691 (-0.9% y/y)
By age	Under 30	19.5％
	30-50	57.4％
	Over 50	23.1％
By gender*1	Male	93.3% (±0 pts y/y)
	Female	6.7% (±0 pts y/y)
People with disabilities	82
Non-Japanese*2	19
Total management personnel	851
Management by gender*1	Male 94.4% (-0.6 pts y/y)
	Female 5.6% (+0.6 pts y/y)
Non-Japanese*2management	1.1% (+0.4 pts y/y)

*1 Data by gender: Refers to data on sex assigned at birth. It is difficult to obtain quantitative data on gender identity and we do not have it, but aim to create workplaces where all employees can take an equal active part.
*2 Data on non-Japanese employees: Refers to data on foreign nationals as defined in the Nationality Act of Japan.

We have achieved the targets set out in the action plan formulated based on Japan’s Act on Advancement of Measures to Support Raising Next-Generation Children, and have received “Kurumin certification” from the Minister of Health, Labour and Welfare in 2021 for satisfying certain requirements. We remain committed to supporting the balance between a career and raising children.

You can find details on our current action plan (for the period from January 1, 2022 to December 31, 2023) here:

• General Employer Action Plan Based on Japan's Act on Advancement of Measures to Support Raising Next-Generation Children

• Please click here to read more about information on employees and other workers.

Labor and management relations

Toyo Tire Corporation recognizes the Toyo Rubber Labor Union as the sole negotiating organization. Terms for consultation and negotiation with the union are clearly stipulated in the collective labor agreement. As of the end of September 2021, the union membership is formed of 3,371 general employees, excluding company executives and managers.
The Labor-Management Conference on Business Management Measures is held six times a year and the Central Conference is held annually to bring together labor and management representatives to share and discuss management issues and the Group's goals.

Activities: Creating healthy working environments (reforming working styles)

Promoting work-life balance

To create environments where diverse talent can flourish, we are making changes to working styles that improve worklife balance. For example, in efforts to support employees with family responsibilities, we offer a system of leave of up to one year for employees with immediate or second-degree family members requiring care, and employees with children under the age of two, allowing them to concentrate on their responsibilities at home. We have also introduced a system where annual paid leave that has expired after two years can be reinstated and used for reasons such as injury or illness, childcare or nursing care, volunteering, or hospital visits or hospitalization for pregnancy or infertility treatments.