The Obayashi Philosophy promises to become a company that values people to achieve our vision of realizing the sustainability of the planet, society, and people.

Furthermore, the Obayashi Group Human Resource Management Policy places "reaching one's full potential while staying safe and healthy" at the top of the list and we have positioned health and productivity management as a critical human resource management strategy.

As such, we formulated the following health and productivity management policy and we have been working on enhancing our corporate value and realizing the well-being of all our employees and their families.

The President is responsible for Obayashi Group health and productivity management. The Business Plan Committee, under the Management Meeting, and its specialist team, the Human Resource Management Expert Committee (Director of HR as promotion officer), formulate the policies and strategies. The Health and Productivity Management Promotion Expert Subcommittee promotes specific measures in collaboration with organizations such as the Health Insurance Association for Architecture and Civil Engineering companies (HIA2CE).

The Subcommittee, led by the HR and Business planning departments, also works with occupational health physicians and certified public psychologists/clinical psychologists to propose and implement measures to help maintain and enhance the well-being of employees and their families. These ongoing measures include analyzing employees' health checkup data and making necessary workplace adjustments.

The management issues we want to solve through health and productivity management are sustainable growth of the company, rich human capital, and maintaining and enhancing the health of employees and their families. We aim to achieve the following four final targets.

• Improvement in work engagement
• Improvement in labor productivity
• Decrease in presenteeism (working while sick)
• Decrease in absenteeism (sick leave)

Health and Productivity Management Strategy Map:
Mapping out the ways that the effects of health investments connect with the management issues we seek to solve through Health and Productivity Management

Performance against "indicators related to health investment measures and initiatives"

Performance against "indicators related to changes in employee mindsets and behavior"

We have been working to achieve that 100% of employees undergo annual health checkups and to increase the rate of employees getting follow-up health checkups (in FY2023, the rate was 98.7% for the former and 69.9% for the latter).

We also offer health checkups for specified workers.

In addition to the standard health checkups, we subsidize (fully or partially) the cost of a comprehensive health screening for employees and their dependent spouses (they must be 30 years old or above).

We have set up a Health Management Center and a dental clinic in the Tokyo head office and a clinic in the Osaka main office. In addition to general internal medicine, the clinics provide smoking cessation treatment, and test for sleep apnea syndrome and so on. We also offer an external health consultation service by phone or email as part of our disease prevention effort for employees and their families.

For early detection and prevention of mental and physical health issues caused by long working hours, consultations with doctors and specialists are available in person and online. Based on the doctor's advice, we provide guidance to the employees and take necessary measures.

We have created a guideline to deal with new influenza viruses that will be implemented without delay should there be an outbreak of the virus.

As part of our prevention measures, we offer influenza vaccination every year. We also notify employees of infectious diseases, such as norovirus, to raise their awareness around infection prevention.

We advise employees on overseas assignments to get vaccinated according to their destination to minimize the risk of infections that can otherwise be prevented. The cost is covered by the company.

We have also established a health support system that enables employees working overseas and accompanying family members to seek health consultations via phone or online.

Obayashi Corporation Employee's Union and Obayashi extracurricular athletic club host various sporting events. We also provide information on external events via the intranet to improve the employees' participation in physical activities and make them more health conscious.

The label on the menu items displays the calories, sodium content, and fat content to encourage greater health awareness from the perspective of one's diet. We also offer menu items using ingredients called sustainable food (*1) such as soy-based meat alternatives and ingredient with Best Aquaculture Practices (BAP) certification (*2) which is gaining recognition as health food.

• *1 BAP certification
  A certification system that guarantees environmental and social responsibility, health of farmed fish, and food safety throughout the entire aquaculture production chain, from hatchery, feed mill, farm, to processing plant
• *2 sustainable foods
  Ingredients and food products made through environmentally and socially responsible means

Obayashi takes various opportunities to provide mental health care for employees in order to create a healthy working environment for all.

Stress checks are conducted once a year for all employees to improve the consultation rate and promote aftercare for those who take the checks.

We also conduct various mental health training throughout the year as part of the training based on hierarchy such as new hires, young employees, and managers. The training aims to provide the employees with the correct knowledge on mental health issues so they can keep themselves and their subordinates healthy.

We have set up a mental health consulting office in the head office to make consultations more accessible. Specialists, certified public psychologists, and clinical psychologists are available to provide comprehensive support for the mental well-being of the employees. They will work with managers and HR personnel to adjust the work environment as needed.

External consultation service can be used 24 hours a day, and we accept consultations by email or telephone for overseas employees and their families as well.

Since August 2009, we have been offering an outpatient smoking cessation program at our in-house clinics (Health Management Center, Osaka clinic) to prevent health problems caused by smoking and passive smoking. As of July 2024, 191 people visited the clinic for consultation. The rate of successful smoking cessation over the last three years is 77.8%, and the smoking rate is on a downward trend.

In the construction industry, reducing work hours at construction sites is an important issue.To correct long work hours, Obayashi is making efforts to reduce total working hours by creating an environment and raising awareness for systematic use of leave and reduction of overtime work.

Going forward, we intend to take work style reform to the next level. Complying with laws and regulations is a given, but we will also strive to build open workplaces where employees can work respectfully together and gain job satisfaction as they strive to reduce working hours, based on a recognition that the legal cap on overtime work of 45 hours per month or 360 hours a year presents the ideal that we must achieve.

Annual KPI Achievement Rate for Overtime Work Hours (FY2022 Results)

• Helping Increase Operational Efficiency through ICT
  Obayashi has been endeavoring to meet its target of two-day weekends for employees (closing construction sites eight days out of every four-week period). This requires setting appropriate delivery dates. That, in turn, requires understanding on the part of the customer. Obayashi aims to automate work processes and make them more efficient with less human labor by actively adopting tools using the latest ICT technology. Bold steps we are taking to make work processes more efficient include repeated e-learning about attendance management to raise awareness. Others include simplifying accounting procedures by introducing an expense adjustment system and implementing Robotic Process Automation (RPA).
• Holding a meeting between the company and the labor union to discuss reduction in total work hours.
• Holding a no-overtime day, etc.
• Raising awareness repeatedly through e-learning about attendance management

Obayashi has set a KPI of closing construction sites eight days out of every four-week period (104 days or more a year) at 100% of its construction sites by FY2024 in line with the basic policy advocated by Japan Federation of Construction Contractors (JFCC). In FY2023, the achievement rate was 55.2% for the Company's building construction and civil engineering sites in Japan. Obayashi is now seeking the cooperation of clients and promoting various initiatives to help achieve this ambitious goal.

To close construction sites for eight days out of every four-week period, it is necessary to set appropriate construction periods. We explain this to the client using leaflets published by JFCC and other means when receiving orders, and clients are becoming more accommodating on this issue. The proportion of projects for which the system of closing eight days out of every four-week period is accepted is increasing each year. In FY2023, the proportion of orders received with that stipulation rose to 61.8%* in the domestic building construction business. * Proportion of construction work with a contract amount of or more ¥100 million, or a construction period of four months or more.

• Promoting Opportunities for Women

• development of global human resourses

• People with Disabilities

• Seniors

Obayashi strives to encourage a good work-life balance by improving its workplace culture and reforming systems so motivated employees know they can continue to work with no detriment to their career even during different life stages, such as when they have childcare or nursing care commitments. In July 2023, we expanded the eligibility for the shorter working hours system to include those who are raising children or caring for family members and those with a disability certificate, and we made the program available to employees to use the system regardless of their length of employment. We are also working to create an environment that makes it easier for employees to apply for some of the childcare-related systems, for example by digitizing the application forms for these systems.

We are actively working toward enhancement of education such as with training for mid-career recruits and locally hired staff and for developing digital-related human resources to take the lead in DX. Other initiatives include diversity & inclusion training, unconscious bias training, self-leadership training, etc. which are types of training conducted to encourage awareness elevation among employees.

Initiatives to help employees develop skills independently have been underway since FY2022. These initiatives include the holding of various workshops on improving productivity by looking at how employees conduct their work and communicate, in addition to seminars on career support and online self-learning programs that offer employees the opportunity to learn new or different skills.

We give our mid-career recruits education on various personnel programs, information security and human rights regardless of their occupation when they join us. After that, we divide them by type of occupation to give them the education they need.These educations help them to play active roles just like employees who joined as new graduates.

We believe that strong engagement fosters positive organizational activity, so we conduct engagement surveys of all employees. The survey covers seven set engagement indicators: the "employee satisfaction rate," which is a KPI; "identification with Obayashi Group's vision," "desire to grow," and "desire to work together," which measure the ideal human resources defined in the policy; and "evaluation and approval," "remuneration and evaluation system," and "growth opportunities," which measure the degree of employee satisfaction in relation to such factors as working environments and growth opportunities. The average of these engagement indicators was 72.5% in FY2023.

Also, to reflect the views of our employees in improving the various personnel systems, we conducted various surveys on all our employees and held conferences with our employees union to improve engagement. The survey results were published in the internal newsletter and on the intranet so that our all employees can check them.