Mitsubishi Materials : Corporate Strategies / Strengthening the Foundation (pp. 53~73)

Value Creation and		About the Mitsubishi			Strengthening the		Financial Data/
Top Message	Business Strategies	Corporate Strategies	Governance
Performance	Materials Group	Foundation	Corporate Data

[Corporate Strategies]

R&D and Marketing Strategy

Create new products and businesses to meet customer needs and wants via R&D and marketing based on Mega Trends, as well as collaborating with the incubation function of new businesses.

Long-Term Business Goals

• Options for business development are presented via R&D based on Mega Trends, and the incubation function for new businesses is actively utilized
• Marketing cooperates with research and development create new products, businesses, and business models to meet customer needs and wants

Long-Term Strategy Goals

The following missions have been set in key fields.

• Carbon recycler for decarbonization
• Creator of IoT social infrastructure
• Supplier of lightweight/composite/advanced materials
• No.1 recycler of urban-mine resources

The Group will match core technologies with information collecting that gains an overview of Mega Trends, customer needs, and technology trends, and thereby creates new value. We will rejuvenate businesses and promote the optimization of its business portfolio. We will also enhance cooperation within the Group, promote marketing activities in promising new business domains, create new products and businesses, and maintain intellectual property.

Structure and roles for new business creation and R&D

Points for Strengthening Operations in Fiscal 2022 and After

The New Business Development Department was established in April 2021, and through seamless cooperation with the Development Department and Central Research Institute, we are promoting R&D and Marketing Strategy with greater speed. This department focuses on adjacent and new business fields, promoting R&D and Marketing Strategy with a vision of realizing new products and business from a Group-wide perspective. The Marketing Office, EV Materials Development and Recycling Promotion Office and New Business Office have been set up within this department to comprehensively promote everything from new business planning and marketing to R&D and commercialization, aiming to more rapidly create new business strategies.

In terms of individual department and office roles, the New Business Development Department supervises corporate marketing, while the Marketing Office and EV Materials Development and Recycling Promotion Office plan and develop new business and strategic marketing. The New Business Office diversifies output through strategies such as commercialization within the Group, spin-offs and licensing, aiming for new routes to commercialization. The target markets include clean energy, green materials, post 5G, xEV and life and healthcare. In fiscal 2022, we are conducting new business planning through hypothesis verification as our approach to new business creation. Concurrently, we are revising our gated process management used through commercialization in order to more easily promote new business proposals that meet societal needs.

Integrated promotion from marketing/strategy planning to commercialization through R&D

In addition to existing business units, create various outlets (spin-offs, licensing, etc.)

Clean Energy

New Business Development Dept.

Corporate Research & Development Dept.

Needs from Society

Corporate Marketing

IP Strategy Formation

CVC

open call

Green Materials

EV Material

Marketing Dept.

Intellectual

Corporate Research &

Development Dept.

Property Dept.

Development Strategy Dept.

Post 5G

Needs from

xEV

Strategic Marketing

R&D

Customer

Life and Health care

Future business and technology creation project

Project

Infrastructure technology

Business Promotion Dept.

Collaborative

creation and

Central Research Institute

Technology Trends

Create various outlets

Promotion

project

Advanced process engineering

Commercialization

Mass Production

internal

Production Technology

Corporate Production

Sustainable Development Dept.

Corporate Strategy Dept.

DX Promotion Dept.

collabo-

Management Dept.

Engineering Dept.

SDGs,ESG

Optimization of business portfolio

DX strategy

rations

Manufacturing Strategy

Mass Production (APQP)

MITSUBISHI MATERIALS CORPORATION INTEGRATED REPORT 2021 53

[Corporate Strategies] R&D and Marketing Strategy

MMC Innovation Fund

Public Recruitment System for Industry-Academia Joint Research with a View Toward Commercialization

Value Creation and		About the Mitsubishi			Strengthening the		Financial Data/
Top Message	Business Strategies	Corporate Strategies	Governance
Performance	Materials Group	Foundation	Corporate Data

[Corporate Strategies]

Manufacturing Excellence Strategy

Business divisions formulate a vision based on a business strategy and maximize utilization of the Group assistance function of corporate divisions to raise manufacturing capability to the next level.

In March 2019, we worked with JMTC Capital G.K. to establish the "MMC Innovation Investment Limited Partnership," a corporate venture fund with the objective of investment in venture companies with material technologies. This operation is planned to continue until December 31, 2028.

We support technology start-ups that have synergies with us. In this, we accelerate collaboration with a focus on next-generation batteries, metal processing, IoT and AI, material technologies related to life and healthcare, and process technologies related to Decarbonization and urban mines. So far, we have invested in four start- ups.

Related Materials:

"MMC Innovation Fund" on the corporate website* https://www.mmc.co.jp/corporate/ja/business/rd/mmc_innovation.html

*This data is only available in Japanese on the website.

From fiscal 2021, for the purpose of creating new products and business, we have established a public recruitment system for industry-academia joint research with a view toward commercialization. This system targets researchers in universities and research institutes both domestically and abroad. We are looking into ways to actively utilize results obtained from this joint research. If the results of research strongly align with our needs and seeds, we carry out full-scale development from a broader perspective than the research, aiming to adopt it in new products and launch new business. After commercialization, we anticipate investment from the MMC Innovation Investment Limited Partnership, and aim to build an integrated collaboration and support system that spans development of technological seeds through operation after commercialization.

Related Materials:

"Public Recruitment System for Industry-Academia Joint Research" on the corporate website* https://www.mmc.co.jp/corporate/ja/business/rd/koubo.html

*This data is only available in Japanese on the website.

Long-Term Business Goals

Business divisions will constantly develop a vision for raising manufacturing capability to the next level and we will make the most of the Group assistance function of corporate divisions to achieve that vision.

Long-Term Strategy Goals

Business divisions will continuously develop a vision for raising manufacturing capability to the next level and make the most of the group assistance function of corporate divisions to achieve that vision. This will enable us to create manufacturing capabilities that are clearly distinct from competitor companies by utilizing our talent and technical resources both inside and outside the

Points for Strengthening Operations in Fiscal 2022 and After

Raising manufacturing capability to the next level, we will realize our factory vision based on business strategy connected to the advancement of medium-term growth through efforts to attain more specialized manufacturing, and with enhancement of production processes, we work toward improving quality by changing our methods and improving our ability to grasp issues that can be improved through digitization. Additionally, we will actively utilize knowledge outside the department to further improve manufacturing.

Within the formulation of a factory vision, we are collaborating with the DX Promotion Department to visualize and streamline activities. In the manufacturing management framework, we will work to disseminate and establish mechanisms in continued factory development while we accelerate the improvement of factory issues extracted from evaluation results. In addition to steadily promoting implementation themes and producing results, the enhancement of

MMC-NIMS Center of Excellence for Materials Informatics Research

We established the MMC-NIMS Center of Excellence for Materials Informatics Research with the National Institute for Materials Science (NIMS) in June 2020.

Based on the NIMS materials informatics development infrastructure, we synthesize our accumulated experimental data, analytic models, empirical rules and other elements from our materials development, aiming to build informatics- driven materials development systems which will predict the performance and life of practical materials to be manufactured using a combination of multiple materials and processes by 2025.

Development of CCU Technology Utilizing Factory CO2 Emissions

We have continued development of CCU (carbon capture and utilization) technologies that utilize CO2 emissions from our Group's factories, and began demonstration testing in the Kurosaki Production Section, Kyushu Plant in July 2021.

We will contribute to the creation of a decarbonized society and reduce CO2 emissions by disseminating the results obtained through this technological development throughout the Group.

Related Materials:

"Cement Business" Integrated Report

P47

Group to swiftly solve problems.

production processes promotes the deployment of the developed technology and mechanisms to factories that share common issues. Furthermore, we are continuing to develop elemental technologies for smart factories and are looking into the realization of model factories.

In the hands-on education program for developing human resources with manufacturing talent, young employees learn methods for solving problems while contributing to factory profits. In this program, we also focus on the expansion of development, sales and management fields in addition to manufacturing. In fiscal 2022, we added a new course for managers.

Raise manufacturing capability to the next level

• Formulation and realization of the factory	• Enhancement of production	• Proactive utilization of
vision based on its business strategy	process	external knowledge

R&D and Marketing Strategy in Medium-Term Management Strategy (FY2023 Strategy) initiatives

Mission

Activities of related divisions

Activities of business divisions and manufacturing bases

Contribute to build a decarbonized society

Contribute to build a prosperous society

Contribute to build a recycling-oriented society

Carbon recycler for decarbonization

Creator of IoT social infrastructure

Supplier of lightweight/composite/advanced materials

No.1 recycler of urban-mine resources

Mega Trends

CO2 utilization

Use of hydrogen

Robot

Post LiB

MaaS

Mega city

Renewable energy

Post 5G

Autonomous-driving

Life and Healthcare

FY2021-2023 (FY2023 Strategy)

Key targets

Next-generation

Key targets

IoT/AI

Machining difficult-

vehicles

to-cut materials

Infrastructure/

Nano functional

Polymer composite

materials

Integrated

mass production technology

Advancement

materials

Post LiB materials

functions

R&D and Marketing

of recycling

EV copper parts

Energy-related

Strategy

technologies

EV thermal management

Material

materials

Clean energy•

components

CO2 capture

composite

Urban mines

Recovery of

Decarbonization

and utilization

valuable metals

Electronics

Automobile

Energy

Environment

Central Research Institute			development
Production Engineering
Production
Center		Technology
	process
Smart Factory Promotion	upgrade
Center
All Material Kaizen
Foster strong
Convention	Kaizen culture

Develop employee training system for manufacturing

Formulation of factory vision based on business strategy

	setting	Enhance innovation power
Managementframework	capabilityFactoryevaluation and issue	Improve process development
and mass production capabilities
development capabilities
		Elevate factory management
		capabilities
		Realize faster and deeper
		Kaizen capabilities
		Strengthen human resource

Building resilient basic physical strength through internal reform activities	Raising manufacturing capability to the next level	Comprehensive efforts to increase business competitiveness

54 MITSUBISHI MATERIALS CORPORATION INTEGRATED REPORT 2021

MITSUBISHI MATERIALS CORPORATION INTEGRATED REPORT 2021 55

[Corporate Strategies]

Quality Management Strategy

Establish "quality excellence" as corporate brand equity of the Group via "proactive quality management" initiatives to earn a good reputation from customers.

Value Creation and		About the Mitsubishi			Strengthening the		Financial Data/
Top Message	Business Strategies	Corporate Strategies	Governance
Performance	Materials Group	Foundation	Corporate Data

As the result of efforts to implement and strengthen prevention measures for recurrence within the Group's quality management, we have improved both quality awareness and control level across the Group and various measures have been disseminated across the Group. In order to prevent quality issues from reoccurring in the future, recurrence prevention measures for series of quality issues are being incorporated into quality management systems such as ISO9001, and are continuously implemented at each site.

Long-Term Business Goals

Establish "quality excellence" as corporate brand equity of the Group

• Optimization of the designs, machines, and manufacturing processes for more competitive process capability* to raise the product quality level
• A good quality reputation for our products contributes to corporate differentiation and competitiveness

*Process capability: The performance quality delivered by a production line/ process

Long-Term Strategy Goals

Our long-term strategy for quality management is to drive "proactive quality management" that aims for designs, machines, and manufacturing processes that prevent nonconforming products. Through this, we are shifting the focus from resultant factor control (management based on inspection results) to causal factor control (management of manufacturing methods). In this way, we will improve our process capability, optimize designs, machines and manufacturing processes to improve product quality, and establish "quality excellence" as the brand equity of the Group in the long-term. We believe that such a high level of customer trust is the Group's competitive edge.

High

Points for Strengthening Operations in Fiscal 2022 and After

With regards to the quality issues, we are working on a system that will absolutely prevent non-confirming products from being shipped by "reactive quality management." We are revisiting standardization, determining the normal condition for manufacturing a product, and thereby improving and maintaining quality, while also reconfirming the rules and principles of production technologies and determining the technical basis behind the standards and setting values. Currently, we are progressing toward automation of inspection equipment, and have entered the phase where we are utilizing data obtained from this. In the future, we will move our quality management strategy to "proactive quality management" in order to completely eliminate non-conforming products. By optimizing designs, machines, and manufacturing processes, we will improve process capability and product quality, and also optimize costs. In this way, we aim to differentiate ourselves, enhance competitiveness and establish "quality excellence" as the brand equity of the Group.

Main causes of the shipment of non-conforming products

Inadequate framework

for exerting influence on product development and order receiving processes at order receiving stage

Attitude excessively

prioritizing "order receiving" and "delivery date"

Order received and

mass production that the specifications exceeding manufacturing capability

Insufficient framework

of quality assurance system

Pressure on

quality assurance departments from other departments

Low awareness of

compliance with specifications

Arrogance in

thinking that quality management is being achieved

Low sensitivity to risk

		•:Continue to conduct
Preventive Measures for	Concrete Measures	Achievements in FY2021 /
Quality Issues	Future Initiatives

Implementation
of a Front Loading	• FLS guidelines issued	• FLS performance checked in quality
System (FLS) for Order	• FLS performance audit	audits and external consultation
Receiving
Enhancement of	• Check the quality assurance function
and ensure its independence
the Framework and
• Check the right of access and the	• Checked in quality audits
Authority of the Quality
actual work at quality assurance
Control Department
departments
		• Conducted remote working as a
	• Quality compliance training for	response to COVID-19 pandemic
	employees at sites in Japan and	• Conducted quality training (including
	overseas	QC data utilization) leading to proactive
		quality management
Expansion of Quality
Training		• Training by job grade for young,
	• Quality training by job grade	mid-level, and management-level
		employees
		• Conducted remote working as a
	• Quality training for developing	response to COVID-19 pandemic
	professional quality control skills	• Conducted ISO9001 internal auditor
		training
		• As 3 year plan ending March 2021,
		inspection equipment has been

				Goal	"Quality excellence" as corporate brand equity
				(establish designs/machines/processes which never
			Proactive
				cause non-conforming products)
			quality
			management
			General quality level required from customers
level			(Non-conforming products may be manufactured in processes but are never shipped)
Quality
	Origin			Time
Reactive	Now
	quality		The lowest quality level for running our business
	management		(Although not perfect, managing to not ship non-conforming products in final inspection)
	Quality	Totally devastated corporate reputation
	scandal	(Non-conforming products are shipped by tampering with the quality data)
Low	Past	Now	2022	2025*	*Assign model lines/products for the initial implementation, and
the projects to be completed in 2025. In parallel, proactive
		FY 2023 Strategy	Next Medium-term	initiatives by the non-assigned are encouraged as well.
		Management Strategy

in relation to quality issues

Insufficient

business resources (insufficient inspectors, inspection equipment, etc.)

Audit procedures that

have become a mere facade

		automated (the cumulative total is over
		4,500)
Promoting Automated	• Automation of inspection	* There are changes in business plan
Inspection Equipment	equipment	due to transfer of business
		• Automated inspection equipment
		is used to judge inspection data
		automatically and prevent data
		overwriting
Enhancement of		• Conducted planned audits including
• Quality audits for all target sites	remote audits for fiscal 2021
Quality Audits	* Excludes postponement due to COVID-19
		pandemic
	• Quality consultation by external	• Conducted consultation for focused
	improvement activities and training on
	consultants
	quality control
Utilization of Outside
Consultants	• Sharing information on the
	• Information sharing at quality manager
	consultation	meetings

56 MITSUBISHI MATERIALS CORPORATION INTEGRATED REPORT 2021

MITSUBISHI MATERIALS CORPORATION INTEGRATED REPORT 2021 57

[Corporate Strategies]

Digital Transformation (DX) Strategy

The Group will use Digital Transformation (DX) to strengthen three key pillars of business, which are "Business added-value," "Business operations competitiveness" and "Management speed," and thereby realize its goal of being a "leading company."

Value Creation and		About the Mitsubishi			Strengthening the		Financial Data/
Top Message	Business Strategies	Corporate Strategies	Governance
Performance	Materials Group	Foundation	Corporate Data

[Corporate Strategies]

Human Resources Strategy

Based on the idea that human resources are the source of business competitiveness, the Group will focus on cultivating and utilizing human resources to aim to become a company where each and every employee can respond to change and experience growth and self-realization, while also forming a sound organizational culture that contributes to stronger Group management.

Long-Term Business Goals

A leading company that provides high value-added products and services via DX

Long-Term Strategy Goals

We will actively promote DX and realize the following three pillars in order to provide services that further increase customer value based on market intelligence, in order to become a leading company that provides high value-added products and services.

• Business added-value
  Strengthen links with customers, enhance cooperation between manufacturing and sales, and achieve high- speed development and market release.
• Business operation competitiveness
  Utilize digital technologies such as IoT and AI to achieve proactive quality management and next-level manufacturing capability.
• Management speed
  Achieve both rapid management and governance enhancement via data sharing and utilization based on thorough digital transformation.

Points for Strengthening Operations in Fiscal 2022 and After

As part of our digital transformation strategy, we established the DX Management Office and CDO (Chief Digital Officer) in April 2020. In order to actualize the measures set forth in the Medium-Term Management Strategy, we selected 21 DX themes with points such as, "Review the entire business process with a focus on 'getting closer to customers'","Create a foundation for catching up to competitors and winning on a global scale" and "Strengthen the management foundation through enhanced safe and secure manufacturing excellence activities, enhanced business management and data utilization, and increased business efficiency." While doing this, we conducted a detailed study in order to realize the measures and formulated the MMDX* implementation plan to be enacted over the six years between fiscal 2021 and 2026.

Furthermore, in order to strengthen the foundation of DX personnel, we are working toward instilling a digital mindset and improved literacy.

The planned total investment for fiscal 2021 to 2026 exceeds 40 billion yen, and we are promoting MMDX with a strong sense of urgency indicating that we must catch up with our competitors now or never.

• MMDX: Mitsubishi Materials Digital Business Transformation
  Related Materials:

Long-Term Business Goals		Points for Strengthening Operations in Fiscal 2022 and After
Talent:	To achieve goals by the end of fiscal 2023, firstly, the Group
continues to work on efforts that ensure the securing and
1. Secure human resources
Extension of mandatory retirement age, reinforce hiring	training of human resources. In fiscal 2022, in particular, we are
activities and systems, including within the Group companies,	looking into revising the HR system to utilize autonomous talent,
etc.	visualizing talent information on employees of major Group
2. Develop human resources
companies both inside and outside of Japan, and building a
Visualize capabilities of employees (talent management),
system for data-driven talent management.
disseminate "Leadership Values in the Mitsubishi Materials
	Secondly, as part of fostering organizational culture, we are
Group," etc.
Organizational culture:	disseminating "Leadership Values in the Mitsubishi Materials
Group." This defines the attitude that leaders need to have,
1. Enhance motivation
which we began disseminating last year. We are also conducting
Introduce professional talent system, etc.
2. Strengthen management of Group companies	various communication measures.
Enhance management capabilities of the Group companies.		Thirdly, we are introducing an extension of retirement age and
Improvement of social value:	an area limited employment system, promoting male employees
to take parental leave, improving the workplace environment for
1. Employ diverse talents
Extension of mandatory retirement age, expansion of	diverse talents, expanding diversity & inclusion efforts including
diversity and inclusion activities, etc.	raising awareness on diversity, and driving activities along with
2. Health & productivity management	"Mitsubishi Materials Group Health and Productivity Management
Striving for certification as a Health and Productivity	Declaration," all of which will lead to an increase in our social
Management Organization based on the Mitsubishi Materials
values.
Group Health and Productivity Management Declaration.
				Diversity & Inclusion initiatives (non-consolidated)
Long-Term Strategy Goals
		Target	FY2020	FY2021
The Group will strengthen its management by securing		Result	Result

DX Management Office

Theme

A project

	DX Management Office
		CDO
	Theme	Theme
	B project	C project
Participating members			Participating members
	DX Promotion Dept.
Business	DX Promotion Dept.	Related
Divisions	DX Promotion Dept. II	Departments

Data Science Dept.

System Strategy Dept.

ICT Promotion Dept.

ERP Promotion Dept.

58 MITSUBISHI MATERIALS CORPORATION INTEGRATED REPORT 2021

	"Special Feature MMDX strategy" Integrated Report	P18
	Summary of MMDX Themes
					1.	MI* :Digital customer touch points
				Metalworking
TransformationDigital	businessbased-Product		2.	MI* :Utilization of market information
	Solutions C
				3.	Ability to propose solutions
				DX
					4.	Demand and supply management
					5.	Improvement of customer touch points
				Advanced
				6.	Supply chain integration
				Products C
				7.	Advance development and production data utilization
				DX
Business				8.	Income platform
		Companywide	9.	Companywide standardization
		Recycling-Based	10.	Strengthening E-Scrap processing
		Business	11.	Environmental recycling digital transformation
Advancement of		12.	Security and safety
Manufacturing Excellence
13.	Maintenance
(Including digital
technology utilization for	14.	Advance procurement
process-oriented
	15. Digital transformation of the Central Research Institute
businesses)
Key Operations		16.	ERP
Data Infrastructure	17.	Upgrading of business administration
18.	Data infrastructure and utilization
Operational Efficiency	19.	Operational efficiency
Human Resource Base	20.	Talent management
21. Digital transformation talent development and literacy improvement

* MI:Market intelligence

• Make appropriate addition, integration and elimination of MMDX themes in response to the changes in the business environment and the progress of each theme.

	and cultivating human resources that can respond to	Promotion of parental leave for male employees
	change and forming a sound organizational culture, while
	15% by FY2023	4.2%	16.2%
	promoting continuous growth by deploying measures for
	Empowerment of female
	the improvement of social values.
		These measures will enable us to achieve our long-	1) Continue to have 25% or more of recent	25.0%	27.4%
		graduate new hires be female
	term business goals of talent, organization culture, and
	improvement of social values.		2) Voluntary turnover rate of 15% or less	18.4%	19.5%
						within five years for female.
		Long-term mission (2030 to 2050)
			3) Increase women in management	1.7%	2.1%
						positions to 2.5% or more
				• Secure and cultivate the required human resources
				Related Materials:
				• Visualize the status of talent development
			Talent	• Compensate employees according to specialized ability and performance	"Workplace Safety and Hygiene (Occupational
						P60
					Ideal for desired talent	Safety and Health)" Integrated Report
				(Organization)	• Next generation leadership talent
				• Group human resources strategies
Improvement		• Global talent to lead Group companies
	have infiltrated all Group companies
	outside of Japan
of social value		"Occupational Safety and Health"
	• Consider human resource measures
	• Highly specialized talent
				according	• Talent who autonomously develop	"Development and Empowering of Diverse Human Resources" ESG Report
				to business characteristics and plans	their careers	https://mmc.disclosure.site/en/
• Social issues are		(Corporate culture)
Organizational	• Employees take the initiative to make
tackled at a Group
level, and business is	culture	decisions on the job
• Many employees find their job
being conducted with a			"Diversity in Mitsubishi Materials Corporation" on the corporate website*
	worthwhile

positive feedback loop.	https://www.mmc.co.jp/corporate/ja/diversity/
	*This data is only available in Japanese on the website.
	MITSUBISHI MATERIALS CORPORATION INTEGRATED REPORT 2021 59

[Strengthening the Foundation]

Workplace Safety and Hygiene (Occupational Safety and Health)

Safety & Health are given the first priority in business decisions made at the Mitsubishi Materials Group.

Value Creation and	Top Message	About the Mitsubishi	Business Strategies	Corporate Strategies	Strengthening the	Governance	Financial Data/
Performance	Materials Group	Foundation	Corporate Data

[Strengthening the Foundation]

Compliance

"Compliance" serves as a vital component of a company as the foundation for achieving sustainable development. Mitsubishi Materials implements measures for spreading and establishing an awareness of "compliance" as a means to fostering an ethical corporate and organizational culture.

The MMC Group Code of Conduct states in Article 2: "We are committed to providing a safe and healthy environment for all our stakeholders." This commitment reflects our realization that we must preserve our employees' safety and health to enable them to provide their families with secure and happy lives, and to contribute to our effective operation and continued development as a company. In our SCQDE order of priority in business decisions, "S" (Safety & Health) is given the first priority.

MMC Group Basic Policy on Safety and Health Management

Spreading and Establishing an Awareness of Compliance

Our broad view of compliance encompasses such elements as corporate ethics and social norms in addition to legal compliance, reflecting our sincere determination to live up to our stakeholders' expectations.

Since fiscal 2019, we have conducted annual surveys on the compliance awareness of all employees. We analyze the results of these studies to assist with our measure effectiveness measurement and promotion.

1. We will carry out safety and health activities based on full participation from all employees, underpinned by leadership and initiative from the President and other managing personnel.
2. We will ensure that all employees comply with the Industrial Safety and Health Act and other applicable legislation, manuals and operating procedures, and establish a workplace culture whereby everyone follows the rules and ensures that others do too.

1. We will make every effort to create pleasant workplaces that are healthy for both body and mind, for all employees, through activities aimed at creating open workplaces and promoting health.
2. We will take preventive measures in accordance with Ministry of Health, Labour and Welfare guidelines on the prevention of work- related traffic accidents and improve road etiquette amongst all employees, in order to eliminate traffic accidents based on our commitment to promoting road safety activities as an example to society as a whole.

We are continually implementing new measures to enhance our Group-wide compliance framework, including domestic and overseas training aimed at realizing our steadfast commitment to improving compliance awareness among individual Group employees. We will strive to continue these initiatives in an aim to further spread and establish an awareness of compliance.

Activities Conducted to Raise Compliance Awareness

Expanding and Reinforcing Compliance Education

We provide CSR education and training with a special emphasis on compliance for Mitsubishi Materials Group employees in Japan and overseas.

We have constructed a framework that enables every employee in every domestic Group company to participate in CSR training once a year. From fiscal 2021, we have been promoting online participation in this training.

Since 2018, Company management has been providing

Promotion of Safety and Health Activities

In 2014, an explosion at the Yokkaichi Plant took the lives of five employees of MMC and partner companies. Based on a strong determination to never allow such an accident to occur again, the Group launched the Zero Occupational Accident Project in 2014 for the goal of eliminating all serious accidents, and is now expanding and building a safety management system for the entire Group.

In 2021, the second year of the three-year plan, we are performing risk assessment to thoroughly improve equipment safety, especially through our introduction of equipment safety manuals.

Hazard Sensitivity Education

At the Occupational Safety and Health Education Center, Midori- kan located at the site of our Saitama Office (Saitama, Saitama Prefecture), we provide hazard sensitivity training (50 types of simulation equipment) and safety and health education. Portable virtual reality (VR) hazard simulation systems are also used to improve hazard sensitivity at the various business sites of the Group.

Plant Safety

In our plant safety activities, we share information within MMC regarding fires, explosions, and other accidents that have occurred within the Group. We are striving to prevent similar accidents from occurring by enhancing communication through the use of internal communication tools, etc.

Promotion of Health Management Activities

We have been promoting health management as one of our human resources strategies, and we formulated the Mitsubishi Materials Group Health and Productivity Management Declaration in October 2020. In addition, we formed the Health and Productivity Management Panel as a specialized subcommittee of the Sustainable Management Office to build workplaces that are mentally and physically comfortable.

In fiscal 2022, we are driving 10 activities to aim at securing employee safety and health, including striving for 100% health examination participation, utilizing health examinations results, and creating environments that assist to better health.

Related Materials:
"Human Resources Strategy" Integrated Report	P59

"Occupational Safety and Health" ESG Report

https://mmc.disclosure.site/en/

"Safety and Health Activities" on the Corporate Website*

https://www.mmc.co.jp/corporate/ja/company/safety.html

*This data is only available in Japanese on the website.

Since 2006, the Mitsubishi Materials Group has designated October as Corporate Ethics Month. Each October, the President posts a message on the Company intranet, and business sites and Group companies plan and conduct unique activities.

Recognizing the importance of establishing the Corporate Philosophy system among all our employees, we produce and distribute booklets, posters, cards, and a handbook for Group employees. The booklets, posters, cards, and handbooks for our group employees are created in 22 languages so that they can be used by employees worldwide. In fiscal 2021, the employee handbook case study collection was distributed via the intranet and used in training activities conducted by Group companies in Japan.

We are working to spread awareness of the SCQDE (see P22) through CSR training and dialog-based workshops, and by preparing and distributing posters and cards, etc.

We are striving to build an organization and corporate culture with good and healthy communication where employee has unrestricted communication, and we see these efforts

as further enhancing Group governance and preventing compliance violations. To this end, we are working to strengthen communication through the holding of dialog-based workshops.

We share a sense of urgency regarding the risks faced by the Group through small group compliance activities. We are fostering compliance awareness and improving workplace communication by having employees view all issues that arise as issues that affect them and exchange opinions.

training to Group company managers to help them understand the responsibilities, duties and roles that executives must fulfill with respect to governance and compliance, and to foster an awareness and provide them with the means to achieve this.

We are reviewing the content of overseas CSR education and training while taking into account the current circumstances in each region, and in fiscal 2019 we introduced online "WEBINAR" training courses in addition to our overseas training groups, streamlining training over widespread regions.

We will continue to make proactive use of visiting instructors and e-learning in our training programs, both in Japan and overseas.

Anticorruption Measures

Given the importance of preventing corruption, a global sustainable development challenge, in April 2018 we formulated our "Regulations for Combating Bribery of Public Officials, etc." in order to help prevent bribery in our global business activities. We provide necessary support for the creation and operation of bribery prevention systems in Group companies.

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