Policies and Basic Approach

Employees are the greatest assets of the Inabata Group. We believe that enabling employees with diverse backgrounds and strengths to fully demonstrate their capabilities will enhance the competitiveness of the Group and lead to sustainable growth. Therefore, we offer flexible and diverse work styles, including support for balancing work with childcare or nursing care. We also strive to improve working conditions and create a supportive and healthy working environment by enhancing benefits and preventing overwork with appropriate management of working hours.
As set out in the Sustainability Code of Conduct, the Human Rights Policy, and the Human Rights Policy Appendix, we ensure strict compliance with the laws and regulations of the countries and regions where we operate, while also supporting and respecting the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work.
We endeavor to pay living wages necessary for employees and their families to maintain a decent standard of living. We also apply a gender-neutral remuneration system ensuring equal pay for employees with the same qualifications and job levels.

Targets

In the Sustainability Medium-term Plan 2026, we set strategies, KPIs, and targets.

Strategy KPIs and targets (April 2024 to March 2027) Boundary
Improve the well-being (state of being physically, mentally, and socially satisfied) of employees who support sustainable growth Employee engagement survey Response rate of at least 90% Consolidated
Positive response rate* of at least 80% to the following statements
(1) I am satisfied with the work I am doing at Inabata now.
(2) I can relate to Inabata’s philosophy, vision, and management policies, and I want to participate in achieving them.
Positive response rate of at least 70% overall
  • *The positive response rate in the employee engagement survey refers to the percentage of responses rated 4 (Agree) or 5 (Strongly agree) on a five-point scale: 5. Strongly agree / 4. Agree / 3. Neither agree nor disagree / 2. Disagree / 1. Strongly disagree.

The results for FY2024 are as follows.
Since FY 2024, the scope has been expanded to include both domestic and overseas consolidated group companies.

KPI FY2024 results Progress status
Employee engagement survey Response rate 82% ○
Positive response rate for the following statements
(1) I am satisfied with the work I am doing at Inabata now.
(2) I can relate to Inabata’s philosophy, vision, and management policies, and I want to participate in achieving them.
(1) 69%
(2) 67%
△
Overall positive response rate 63% △

Employee Engagement

Employee engagement refers to a state in which employees understand the organization’s goals and values, take pride and find fulfillment in their work, and proactively engage in it. In workplaces with high engagement, trust and collaboration are strengthened, leading to increased motivation and productivity, reduced turnover, and sustainable corporate growth.
The Inabata Group regards its approximately 4,700 employees in Japan and overseas as the source of value creation, positioning engagement enhancement as a key management priority. Through a variety of human resource initiatives, we are fostering an environment where employees can take pride in their roles and actively participate in the organization.

Employee engagement survey

Since FY2021, we have conducted an annual employee engagement survey around May to continuously identify changes over time. The primary goal is to visualize current issues and utilize the findings for creating and improving systems and organizational development. In addition, findings on employee motivation and satisfaction with the organization are quantified and fed back to supervisors, serving as a guide for behavioral change and contributing to the revitalization of the organization.
We place significant importance on the results of this survey as a metric to assess whether our personnel and organizational image align with our vision. This has been set as a goal in our Sustainability Medium-term Plan 2026.

Survey Results (2021–2025)
Item May 2021 May 2022 May 2023 May 2024 May 2025
Number of employees surveyed Total 1,400 1,697 1,901 2,714 2,837
Inabata & Co. 587 606 652 686 715
Overseas trading companies 768 934 903 864 881
Overseas manufacturing companies 45 157 346 624 574
Domestic subsidiaries - - - 540 667
Response rate (%) Total 49 73 72 82 82
Overall average score*1 3.68 3.77 3.61 3.64 3.67
Ratio of positive responses for key items*2(%) Engagement
I am satisfied with the work I am doing at Inabata now.
70 73 76 69 69
Relationship with superiors
I have the necessary collaboration with my supervisor at work.
75 80 80 73 73
Organizational culture
When a problem occurs in the course of my duties, my supervisor and the people around me provide appropriate support.
83 85 83 77 76
Corporate philosophy
I can relate to Inabata’s philosophy, vision, and management policies, and I want to participate in achieving them.
70 73 73 67 67
Human resources system and benefits
Inabata’s salary standards are satisfactory, compared to other companies in the same industry.
59 55 57 50 54
Human resources system and training
Inabata supports employee training to improve their skills.
41 48 54 51 54
Work-life balance
Overtime is kept to a level that is acceptable for me.
64 69 75 73 71

Inabata and its domestic and overseas consolidated subsidiaries (mainly targeting employees with Company email addresses)

  • *1 The average score across all items. Employees were asked to rate 39 items on a five-point scale (5. Strongly agree / 4. Agree / 3. Neither agree nor disagree / 2. Disagree / 1. Strongly disagree), and the score for each item was calculated.
  • *2 The proportion of positive responses, which are ratings of 5 (Strongly agree) and 4 (Agree), among the five-point scale ratings provided by employees.
Overview of 2024 survey results

In the 2024 survey, which is the fourth iteration, we expanded multilingual support and conducted the survey in nine languages. As a result, we achieved the highest response rate to date.
Moreover, while we have gradually broadened the scope of the survey since its inception, this year we expanded the scope to include all consolidated subsidiaries in Japan and overseas for the first time, allowing us to assess engagement across the entire Group.
The proportion of positive responses (ratings of 4 and 5) for the items outlined in the Sustainability Medium-term Plan 2026 has decreased compared to the previous survey. This has highlighted the issue of score variability across different regions and locations. In particular, scores related to the penetration of corporate philosophy, interpersonal relationships, and organizational culture were notably lower in some regions.
On the other hand, the average score increased slightly from 3.61 to 3.64 across the entire Group, with a small increase observed in all categories. In addition, companies where issues were identified in previous surveys saw improvements in scores due to the implementation of appropriate measures. This confirms that the survey is effectively achieving its primary objective of identifying current issues and driving improvements.
Overall, the survey indicates that scores related to career and skill development support have been maintained, demonstrating that initiatives to enhance work environment and engagement are proving effective. However, the significant expansion of survey scope has revealed a decline in scores related to resonance with corporate philosophy and support from peers. This indicates that improving engagement and satisfaction among Group companies, including newly consolidated ones, as well as the head offices, will be a major challenge moving forward.
We will continue to advance ongoing improvement efforts with the goal of creating an environment where each employee can work energetically and enthusiastically.

Overall score (2023→2024)
  • 3.61→3.64 <+0.03>
Main items with improved scores (2023→2024)
  • To what extent would you recommend your current workplace to close friends or family? (3.33→3.42)
  • I believe that efforts are being made to train individuals for managerial and leadership roles. (3.08→3.16)
  • I am satisfied with the Company’s evaluation system, which assesses based on job performance and capabilities. (3.23→3.30)
Top three items with the highest average scores over four years
  • When a problem occurs in the course of my duties, my supervisor and the people around me provide appropriate support. (4.03)
  • I have good interpersonal relationships at my company. (3.97)
  • I have the necessary collaboration with my supervisor at work. (3.92)
Survey Results (2021–2025)

The survey was conducted on the broadest scale to date, including subsidiaries recently added to the Group through M&A. The response rate reached a record high of 88%, indicating that the survey has become well established and widely embraced by employees.
The positive response rates for key items remained roughly at the same level as the previous year. “Organizational culture” and “relationship with superiors” continued to receive high evaluations, confirming strong workplace support systems and good collaboration. “Work-life balance” slightly declined compared to the previous year, but there were some positive outcomes from efforts to promote diverse work styles. Improvement was observed in “human resources system and benefits” and “human resources system and training,” confirming the effectiveness of the initiatives.
The Group-wide engagement score improved from 3.64 to 3.67 (out of 5), with 38 out of 39 questions exceeding the previous year’s results. Notably, positive responses increased in areas related to “instilling the corporate philosophy,” “interpersonal relationships,” and “organizational culture.” At Inabata & Co., scores improved across all questions, including for “managerial and leadership training,” which had previously been below 3.0 but rose to 3.12, pushing the overall average above 3.0. Initiatives such as the president’s roundtable meeting (refer to page 8) seem to have fostered greater attachment to the Company, boosted motivation, and revitalized communication, producing a positive impact. Some subsidiaries showed declines in certain scores, making their specific challenges clearer. Based on these results, we will promote improvements tailored to the circumstances of each company.
In this fifth iteration of the survey, accumulated data enables multifaceted analysis of trends over time and across individual companies. Going forward, we will share success stories within Inabata & Co. and its affiliates to drive continuous improvement and elevate the entire Group’s performance.

Past Challenges and Corresponding Responses

This survey is unique to our Group and is not intended for comparison with other companies. Its primary purpose is to identify internal issues, implement appropriate measures, and continuously monitor the resulting changes. Therefore, the survey questions remain largely unchanged to track numerical trends over time.
Here are some of the issues identified through past surveys and the corresponding measures taken in response.

Diverse Work Styles

To create a more supportive and employee-friendly working environment where employees can achieve work-life balance, we strive to reduce long working hours and encourage employees to take their annual paid leave, among other efforts.
As measures to prevent the spread of COVID-19, we actively encouraged employees to commute at staggered times and work from home. In FY2022, we introduced the new initiatives listed below. They are designed to improve the efficiency and outcome of work by leveraging the characteristics of diverse work styles, such as in-office work and remote work, and by allowing an even higher degree of freedom and discretion in how each individual works.

Systems That Support Diverse Work Styles (Inabata & Co., Ltd.)

System Description
Remote work with a higher degree of freedom and discretion in work styles Remote work is made available to all employees with the aim of improving the efficiency and outcome of work.
Work-from-home system that helps balance work with childcare, nursing care, or treatment for nonoccupational injuries or illnesses Childcare purposes
For employees with a child up to sixth grade in elementary school in case they are temporarily unable to leave the child in a childcare environment, or employees with a child aged under three and without a childcare environment.
Nursing care purposes
For employees who live with a family member requiring nursing care.
Treatment purposes
For employees with nonoccupational injuries or illnesses who are able to work and wish to continue working while receiving treatment, when the attending physician and the industrial physician determine that the employee is able to work but needs to work from home.
Staggered commuting and staggered lunch breaks that allow employees to choose optimal working hours Core time is 10:00 a.m. to 4:10 p.m. Employees can stagger their arrival and departure times by 30 minutes to one hour (8:00, 8:30, 9:00, 9:30, or 10:00 a.m.) if they are able to work the prescribed number of hours. The lunch breaks are one hour between 11:00 a.m. and 2:00 p.m. This applies to all employees.
Annual paid leave by hourly increments that improves convenience of paid leave Employees can take a maximum of two days of their annual paid leave in hourly increments. This applies to all employees.
Managing Working Hours

We endeavor to address long working hours and prevent chronic overwork by promoting diverse work styles while effectively managing working hours.
We have implemented measures such as digitizing data on entering and exiting the building and using attendance management systems to manage working hours. We do this not only to ensure compliance with applicable laws and regulations, including Article 36 of the Labor Standards Act, but also to create a safe and healthy working environment for our employees.

Helping Balance Work with Childcare or Nursing Care

We have established support systems that exceed our statutory requirements to help employees balance work with childcare or nursing care. This allows all employees, regardless of gender, to maximize their abilities and continue to work with peace of mind even during life stages involving childcare or nursing care.

Childcare and Nursing Care Support Systems

System Description Notes
Staggered commute during pregnancy Working hours reduced by 45 minutes after arriving at work. At the request of the individual, may be granted only when leaving work.
Leave before childbirth Special leave for six weeks before giving birth.
Leave after childbirth Special leave for eight weeks after giving birth.
Childcare leave Until the child turns three. May be taken in installments with no limit on the number of times. The first five days are treated as paid leave.
Exemption from overtime, holiday work, and late-night work During pregnancy and within one year of giving birth.
Child nursing care leave Can be used for child nursing care until the child starts elementary school. Five days a year for one child. 10 days a year in case of two or more children.
Nursing care leave Can be used to care for a family member in need of nursing care. Five days a year for one person. 10 days a year in case of two or more persons.
Accumulated nursing care leave Of the annual leave due to expire at the end of the fiscal year, up to five days can be accumulated for nursing care purposes, up to a maximum of 60 days.

Promoting Parental Leave for Male Employees

With the implementation of the revised Act on Childcare Leave and Caregiver Leave, we have mandated that male employees take at least five days of parental leave to improve the uptake of parental leave among male staff as part of our General Employer Action Plan (April 1, 2023 to March 31, 2028) based on the Act on Advancement of Measures to Support Raising Next-Generation Children.
While the Company has previously exceeded the national average and government targets for uptake of parental leave among male employees in certain years, the reality has been that about 95% of those taking leave only used one to three business days. By mandating a minimum of five days of leave, we aim to encourage greater involvement of men in childcare, promote gender equality, and foster a more balanced division of roles within the family. We also aim to improve employees’ work-life balance and increase their overall satisfaction.
Through various initiatives, we are committed to promoting support for balancing work and life in areas such as childcare and caregiving for all employees, regardless of gender.

Kurumin Certification

On February 7, 2024, we received the Kurumin certification from the Osaka Labour Bureau, recognizing us as a company providing exceptional childcare support, awarded by the Minister of Health, Labour and Welfare.
This certification acknowledges our efforts in promoting work-life balance, supporting the early return to work for employees on parental leave, encouraging the use of annual paid leave, and advancing parental leave for male employees through our action plan, covering the period from April 1, 2019 to March 31, 2023, in line with the Act on Advancement of Measures to Support Raising Next-Generation Children.

Impartial and Fair Recruitment

At Inabata, we believe that human capital is our greatest asset. We conduct recruitment activities (new graduates and mid-career professionals) on an annual basis in order to attract employees with diverse backgrounds and skill sets who can play an active role in the Company, and who empathize with the spirit of love (ai) and respect (kei). The basic policy at Inabata is to recruit people based on their abilities and character. We carry out fair and impartial recruitment without regard to age, gender, nationality, and other attributes. In addition to disclosing recruitment data and recruitment flow on the website, we provide training for employees in charge of selection to ensure fair hiring practices.

Relationship with Employees

The Inabata Group has established a labor union. We also provide an extensive welfare system and facilities to realize an environment where union members can make the most of their individual strengths and concentrate on their work with peace of mind. This also helps increase employee motivation.
Labor and management regularly discuss various issues with the aim of improving working conditions, including occupational safety, and improving employees’ economic well-being.
The rate of union membership is 62% as of September 1, 2025.