Social

Health and Safety

Work-Related Accidents

The number of work-related accidents at the DOWA Group as a whole has been declining over the long term. The frequency rate of accidents in fiscal 2020 was lower than in the previous fiscal year and lower than the average for companies of a similar size, according to statistics from the Ministry of Health, Labor and Welfare. However, due to an increase in major accidents overseas, the degree of accident severity in fiscal 2020 was higher than that of the previous fiscal year.

The Environment and Safety Department conducts an analysis of accidents to determine what types of work, what age demographics, and which locations are prone to work-related accidents and then gives guidance as a priority task.

In fiscal 2020, we ramped up our efforts to conduct safety audits and engage in safety education with the goal of preventing serious accidents during activities necessary for proper operations. As a result, the number of serious accidents requiring four or more days of leave was the lowest it has been in 10 years. The accident category with the largest number of incidents in fiscal 2020, including accidents not requiring the taking of any leave, occurred under the contact with harmful substance category, which accounted for nearly 30% of the total. The only category of accidents requiring over four days of leave that increased compared with fiscal 2019 was falls, with many of the injuries being suffered by employees aged 50 years or older. We are focused on preventing the recurrence of these incidents.

Change in the Frequency of Accidents at Work

Change in the Severity of Accidents at Work

Employment

Number of Employees by Region (People) (including non-consolidated)

Region		FY2016	FY2017	FY2018	FY2019	FY2020
Japan		6,072	6,094	6,359	6,491	6,810
Overseas	Asia (besides Japan)	2,899	3,092	3,148	3,217	3,558
	Europe	23	14	14	12	27
	North America	96	131	166	128	128
	Latin America	1	4	4	52	68
	Overseas	3,019	3,241	3,332	3,409	3,781
Total		9,091	9,335	9,691	9,900	10,591

Ratio of male to female employees in Japan (Full-time Employees)

Employment Situation in Japan		FY2016	FY2017	FY2018	FY2019	FY2020
Men	People	3,787	3,851	4,049	4,193	4,341
Men	％	92.2%	92.0%	92.3%	90.7%	90.3%
Women	People	321	337	338	429	464
Women	％	7.8%	8.0%	7.7%	9.3%	9.7%
Total	People	4,108	4,188	4,387	4,622	4,805

Employment statistics　(including non-consolidated)

FY2020	Men	Women
Average age (years old)	41	39
Average length of employment (years)	14	12
Number of employees hired (people)	307	70
Number of employees who left Company at own request (people)	90	24
Number of employees who left Company due to retirement (people)	8	1
Employee retention rate: employees employed for 10 years or longer (among employees hired as new graduates for the holding company)	78%	64%

Percentage of people employed as mid-career employees under the Comprehensive Labor Policy Promotion Act

	FY2019	FY2020	FY2021
Percentage of people employed as mid-career employees that became permanent employees	11％	10％	9％

Optimizing Working Hours

We strive to prevent long working hours and promote the use of annual paid leave to enable employees to maintain their physical and mental health and work energetically. The average overtime hours in FY2020 were approximately 19 hours per month, which is about the same as in FY2019.

Employees took 14 days of annual paid leave on average, which were 70.8% of the 20 days of paid leave granted to them, in FY2020. The days of annual paid leave taken declined slightly from the level in FY2019.

The Company has a volunteer leave plan, but no employees took volunteer leave in FY2020, partly due to COVID-19.

Status of the Taking of Annual Paid Leave

Diversity in the workforce

At DOWA, there is no gender distinction in terms of workstyles, and female employees are active in a wide range of fields, including manufacturing, R&D, production control, planning and sales. In matters of hiring, promotion and advancement, assessments are made purely according to ability. The number of women in management roles is low, at 2.4%, but it is increasing each year due to changes in the business and work environment. In addition, five female employees were hired in fiscal 2020 for management-track positions at DOWA Holdings, comprising 10% of new employees hired by the Company, and we plan to increase the percentage of female hires in the future.

Percentage of Female Workers by Position (%)

Position	FY2016	FY2017	FY2018	FY2019	FY2020
General employees	9.7	10.0	10.5	11.2	11.4
Management employees	1.2	1.3	1.7	1.4	2.4
Executive officers	0.8	0.8	0.8	0.9	0.9

One problem we face, however, is that our retention rate of women is lower than that of men. Therefore, we are making efforts to increase the percentage of women who remain employed by the Company for over 10 fiscal years to 80%, the same as that for men.

Retention Rate (Rate of Employees Who Remain After 10 Fiscal Years of Employment, Holding Company and New Graduates Only)

To increase this retention rate, we are developing a system that will support women in both their child-rearing and work duties. This system includes a flextime system and assistance for child-rearing costs and expands the scope of employees who can work shortened hours for child-rearing purposes. In addition, from fiscal 2017 to fiscal 2020 we worked on reforms to expand education and awareness, such as diversity and career training for women and diversity management training for managers. Going forward, DOWA will continue to support the development of women’s careers and become a company that anyone, regardless of gender, will want to work for over the long term.

Training to Promote the Diversity of Human Resources

Training (FY2017–FY2020)	Total time (hours)	Attendance rate (total)
Diversity and career training (for female employees)	218	64%
Diversity management training (for management employees)	80	57%

In fiscal 2020, five men (of 125 eligible) and 33 women took childcare leave, and 76 men and 27 women took time off work to care for their sick children. All of these figures increased from the previous fiscal year.

Number of Employees Taking Childcare Leave and Leave to Care for Sick Children (People)

Type of leave taken		FY2016	FY2017	FY2018	FY2019	FY2020
Childcare leave	Men	0	2	2	0	5
Childcare leave	Women	28	32	31	22	33
Leave to care for sick children	Men	24	27	35	64	76
Leave to care for sick children	Women	24	26	28	24	27

FY2020	Results
Percentage of employees who returned to work after childcare leave	100％
Number of employees who left the Group during childcare leave	0
Ratio of the people employed by the Group at end of fiscal year to employees who took childcare leave in previous year	100％

Employment of People With Disabilities

In fiscal 2020, the employment rate of people with disabilities was 2.1% for DOWA Holdings and 1.4% for the entire Group. We will continue our efforts to create acceptable conditions allowing us to reach the statutory rate of employment of people with disabilities and to create workplace environments where these people can work comfortably and actively.

Status of Employment of People With Disabilities

The employment rate of people with disabilities

Status of Employment of People with Disabilities	Rate
Employment rate (holding company)	2.1%
Employment rate (Groupwide)	1.4%

Re-Employment of Retired Workers

In fiscal 2020, a total of 42 retired workers were rehired, a minor decrease from the previous fiscal year. To address the coming contraction of the working-age population, we have decided to raise the age of retirement from 60 to 65. This decision, which will be in effect from fiscal 2021 to fiscal 2025, was introduced at some Group companies in April 2021 and will be rolled out to other companies in the future.

The DOWA Group is also continuing with an initiative that started in fiscal 2019 to hold life-planning seminars for employees who reach a certain age, with the goal of giving these employees information on embarking on a second, post-retirement career.

Number of Re-Employed (Retired Workers)

Number of Re-Employed (Retired Workers)	FY2017	FY2018	FY2019	FY2020
Men	44	46	55	40
Women	3	2	2	2

Human Resource Development

Education and Training

Some of our educational programs were canceled in fiscal 2020 to prevent the spread of COVID-19, we made an active effort to leverage online events, e-learning, and video distribution to provide programs that were easy to take part in, free from the constraints of time and location. The number of hours of education per person in fiscal 2020 was 20 hours, with 1,546 participants, both of which were down from fiscal 2019.

Status of Training System (Fiscal 2020)

Content		Target employees	No. of participants	Total time
Position-based education and elective education
Training to strengthen middle management		Managers	19	684
Management training, training to strengthen skills for leading subordinates		Managers	55	2,340
Leadership training		Mid-level employees	46	1,656
New employee training		New employees	48	13,824
Follow-up training for new and young people		1st–3rd year employees	146	4,968
Training for on-the-job-training instructors		On-the-job-training instructors	32	256
New recruiterｓ training		New recruiters	34	272
Field-specific training
Language support	English-learning methodology seminar	New employees (pre-assignment training)	48	384
Global	Preparatory training for overseas assignments	Employees receiving new overseas assignments	7	112
Global	Training for overseas base managers	Managers of overseas bases	25	400
Human rights	Stress check training	All applicable persons	32	64
Organizational development	Meetings of staff members responsible for human resource development to improve on-site capabilities	Staff members responsible for human resource development at each base	67	1,608

Evaluation system

In fiscal 2020, we explained our evaluation system using video distribution and switched to an online format for evaluator training. We also expanded the target audience to include employees of Group companies, and more than 500 people took the training course.

Quality Control・Supply Chain Management

Quality Control

At the DOWA Group, we position quality as an important management standard for manufacturing. Major manufacturing plants have obtained ISO 9001 certification for our quality management systems, the international standard for these systems.

Locations That Have Acquired Certification for Quality Management Systems

Number of bases with ISO 9001 certification
Domestic	24
Overseas	13

Supply Chain Management

In fiscal 2020, the DOWA Group distributed self-check questionnaires to approximately 90 major business suppliers to confirm the status of their CSR-related activities, with a response rate of over 90%. We send reports to all respondents with feedback and our evaluation of their current status. Compared with fiscal 2019, several of our business partners managed to achieve our required standard score of 80%. That being said, these questionnaires also highlighted that social contribution efforts in each sector are rather lackluster.

Self-Check Questionnaire Results

Supplier Self-Check Implementation Rate

Number of check　sheets distributed in FY2020	Response ratio
90 companies	Approx. 90％

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