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"

Workplace vaccination for COVID-19 (including employees' families, group company employees, and partner company employees): 1st session-17,655 people, 2nd session-14,868 people, 3rd session-14,011 people, omicron-1,240 people

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.

In addition, to prevent the spread of COVID-19, the Group provided workplace vaccinations for all those who wanted them: employees (including temporary workers and employees accepted on secondment), their families, and employees of suppliers and subcontractors. Steps were taken to create an environment to make it easy for employees to get vaccinated, such as establishing a special leave system for those who experienced side effects of the vaccination.

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 2023, 184 people visited the clinic for consultation. The rate of successful smoking cessation over the last three years is 63.6%, and the smoking rate is on a downward trend.

• 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

As a first step to correct long working hours at construction sites, Obayashi Corporation is focusing on achieving eight closed days in four working weeks (104 closed days or more per year) at construction sites, and in line with the basic policy of the Japan Federation of Construction Contractors (JFCC), we are promoting various initiatives with the goal of achieving 100% in FY2024 as a Key Performance Indicator (KPI). In order to realize eight closed days in four working weeks, it is necessary to set a reasonable construction period, and customer understanding is also essential. We will provide customers with detailed explanations using brochures, etc.

• 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.

In accordance with the Obayashi Group Human Resources Management Policy, we are implementing various initiatives to improve employee engagement. Since FY2023, we have set "achieving 70% or more of employee satisfaction" as a KPI. Based on the idea that a state of high engagement means a state of positive organizational vitality, we conduct engagement surveys of all employees and evaluate their effectiveness by calculating the "employee satisfaction level" from the survey results (employee satisfaction level in FY2022: 78.4%).

We share our vision and goals with all employees and provide opportunities for dialogue with management to ensure each employee can concentrate on their work with a clear awareness of the Group's goals. The president and other members of the senior management team visited all our branches when our brand vision and Medium-Term Business Plan 2022 were created to explain the details and engage in dialogue. In November 2022, we held Medium-Term Business Plan 2022 live meetings attended by the president and mid-career and young employees to deepen support for the plan and the ideal future structure and aims of the Group. The meetings were also streamed webinar-style, and attracted a total of over 500 employees. Employees shared their opinions on the philosophies and policies they could get behind, the significance of the Group and its social role, their reasons for working, their dreams for the future, and other topics.

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.