Policy for Diversity Promotion Activities

By respecting diversity and creating a workplace environment in which each individual can demonstrate his/her full potential, we seek to improve job fulfillment, create new value, invigorate the organization, and enhance corporate value.

Nihon Kohden has established Diversity as one of its Core Values and promotes Diversity, Equity and Inclusion (DE&I) to realize its Long-term Vision, BEACON 2030. We will develop the new potential of our teams by leveraging diversity based on empathy and trust. We respect the individuality of each person and strive to create a workplace environment where a diverse range of people can work with vigor and enthusiasm, regardless of age, disability, nationality, race, gender, sexual orientation, gender identity, gender expression, other diverse attributes, values, or work styles.

Targets and Results for Ensuring Diversity in Core Human Resources

Current status

(As of March 31, 2025)

Target

Achievement period

The ratio of female managers*1

8.0%

12% or more

April 2026

The ratio of male employees taking childcare leave*1

58.7%

30% or more

Maintain the current status

Appointment of female directors, management operating officers, and operating officers*2

2 female directors,*4

2 female operating officers

4 persons or more

Maintain the current status

The ratio of female directors, management operating officers, and operating officers*2

14.3% *4

30% or more

End of June 2030

The ratio of foreign nationals in CxO*3 or higher positions at overseas subsidiaries

47.1%

50% or more

April 2026

The ratio of mid-career hires in management positions*1

46.1%

40% or more

Maintain the current status

  1. Employees at the parent company.
  2. Directors, management operating officers, and operating officers at the parent company.
  3. C-suite such as CEO, COO, CTO, CFO.
  4. As of June 30, 2025.

Differences in Wages between Male and Female Workers

Ratio of Women’s Wages to Men’s Wages in FY2024

Total workers

70.6%

   Permanent employees

75.2%

   Part-time and fixed-term contract employees

63.8%

There are no gender differences in the Company’s wage structure or system. However, there are differences between men and women in terms of job classifications and management ratios, resulting in differences in wages. In order to realize the Company’s goal of “becoming an organization where each individual can maximize their potential and fully demonstrate his/her full potential,” we will work on measures to promote DE&I, such as increasing the ratio of female managers.

* Parent company only. The figure is calculated in accordance with the provisions of the “Act on the Promotion of Women’s Active Engagement in Professional Life” (Act No. 64 of 2015).

Career Development Support for Female Employee

In accordance with Act on the Promotion of Women’s Active Engagement in Professional Life, Nihon Kohden has formulated an action plan and promoted the development of a workplace environment in which women can play an active role. Nihon Kohden has also promoted initiatives to realize a comfortable and fulfilling work environment for not just women but all employees of Nihon Kohden, so that each employee can demonstrate their abilities to the fullest. We obtained the Women’s Participation Promotion Act certification mark known as Eruboshi from the Minister of Health, Labour and Welfare in 2021. In April 2021, we formulated an action plan for five years to March 31, 2026, and set a target of increasing the ratio of female managers to at least 12% and the ratio of male employees taking childcare leave to at least 30%.
In FY2024, the ratio of female managers in all managerial positions in FY2024 was 8.0%, down by 0.1 percentage points from the previous fiscal year. The ratio of female executives was 14.3% (two female outside directors and two female operating officers as of June 30, 2025).
To encourage male employees taking childcare leave, in addition to awareness raising activities by utilizing the Company Newsletter, we have formulated and distributed a guidebook for male employees to help them balance childcare and work. We have also conducted individual consultations regarding childcare leave. Moreover, partial wage support is provided for the first month after the start of childcare leave from FY2022 to alleviate financial concerns during childcare leave. As a result of these efforts, the ratio of male employees taking childcare leave in FY2024 was 58.7%, far exceeding the Company’s target. Additionally, we have introduced a spousal maternity leave system as our unique system to support male employees’ participation in childcare, and the combined utilization rate of this system and childcare leave was 88.8%. We will continue to develop an environment where any employee who wishes to take childcare leave can do so, regardless of their workplace or job category.

Women’s Activity Promotion Program

To achieve a 12% ratio of female managers, we have continued to implement the Women’s Activity Promotion Program since FY2022. In FY2023, we started training for young female employees, aiming to support their efforts to balance work and personal life while building their own unique careers and developing leadership skills. We also provided guidance to their supervisors to encourage active involvement in supporting the career development of their team members.
In FY2024, we held a total of 20 dialogue sessions for female employees in leadership roles who are candidates for management positions, featuring role model female managers and executives. These sessions aimed to increase motivation to pursue management positions.

Mentor System

Since FY2015, Nihon Kohden has implemented a mentoring program, originally designed for newly appointed managers and mid-career female employees. Mentors with extensive knowledge and professional experience support participants in resolving career development challenges and fostering personal growth. The program aims to broaden participants’ perspectives and strengthen their internal networks through dialogue with mentors, cultivate personal qualities, sound judgment, and leadership skills, and encourage them to set ambitious goals. Since FY2021, the program has been expanded to include male employees, supporting the development of a wider range of talent. In FY2024, many employees participated in the program as mentees and mentors, including those working at overseas subsidiaries.

Networking Events

The Beacon Terrace, an employee networking event operated by volunteer female employees, was launched in FY2021 and has been held continuously since then, with many employees participating. In FY2023, the event provided a space for employees of all genders to engage in discussions on themes such as “Products” and “Careers and Work Styles.” In FY2024, under the theme of “Products and Services,” female employees from the R&D departments and the sales departments led discussions on product applications, specifications, and services, exploring new possibilities for customer value that Nihon Kohden could offer.

A view of Beacon Terrace
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A view of Beacon Terrace

LGBTQ Support Initiatives

In FY2024, Nihon Kohden conducted its first training session to raise awareness and understanding of LGBTQ issues. A total of 63 participants attended this training program, mainly from the human resources, general affairs, and legal departments. These departments are closely involved in shaping company policies and workplace environments. The training aimed to foster understanding of sexual diversity and explore potential workplace initiatives. In the training, participants gained foundational knowledge about LGBTQ issues through lectures delivered by instructors from a certified NPO. They also engaged in group discussions on potential initiatives that could be implemented at both the company-wide and workplace levels, providing an opportunity to reflect on new challenges related to advancing our DE&I efforts. We will continue our efforts to promote understanding of LGBTQ issues and other forms of diversity by organizing training sessions and sharing relevant information, with the goal of creating an inclusive and supportive workplace environment where all employees can work with confidence and peace of mind.

Holding a Seminar on Unconscious Bias Management

In October 2022, Nihon Kohden held a diversity promotion seminar for supervisors entitled Unconscious Bias Management. When a supervisor manages diverse members, it is important that each staff can play an active role and his/her team can realize the organizational growth. The seminar is held with the aim of learning about Unconscious Bias.
The seminar has been held three times for the managers of domestic sales branches and area services. For the first time, this fourth seminar was attended by 115 managers in each R&D department. Through a lecture and work on the impact of unconscious bias on people and organizations, participants were able to confront their own unconscious bias. It also provided an opportunity for managers who do not normally interact with each other to share their workplace situations.
We will continue to implement training programs to promote DE&I, aiming to realize a workplace environment where each and every employee can play an active role freely and vigorously without being constrained by unconscious bias or prejudice.

Unconscious Bias Management Training
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Unconscious Bias Management Training

Management Seminar to Uncover the Talents of Female Employees

In November 2017, we held our first trial Management Seminar to Uncover the Talents of Female Employees. The seminar targeted managers with female employees who have recently joined the Company, and participants from the Kansai and Tohoku regions participated in this seminar through a video conference system. In promoting the activities of female employees, the development of managers who can conduct follow-up activities for female employees is also required.
The purpose of this seminar was to encourage managers to understand how to communicate with female employees and engage with them as superiors for building their career. There were many passionate voices that expressed the impressions of the seminar such as “The seminar is helpful as this is the first time for me to participate in training that aims to develop female employees” and “The seminar was a good opportunity to understand the female way of thinking and re-think methods of interacting with female employees.”
The Nihon Kohden Group will continue to deploy measures to promote DE&I and aims to create a workplace where all employees can participate actively regardless of gender.

Seminar venue
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Seminar venue

Kurumin

Nihon Kohden promotes an improved environment to help employees strike a balance between work and child-rearing. As recognition of this, we obtained the “Kurumin” certification mark from the Ministry of Health, Labour and Welfare in March 2011.

Eruboshi

In accordance with Act on the Promotion of Women’s Active Engagement in Professional Life, Nihon Kohden has formulated an action plan and promoted the development of a workplace environment in which women can play an active role. Nihon Kohden has also promoted initiatives to realize a comfortable and fulfilling work environment for not just women but all employees of Nihon Kohden, so that each employee can demonstrate their abilities to the fullest. We obtained the Women’s Participation Promotion Act certification mark called Eruboshi from the Minister of Health, Labour and Welfare in 2021.

Senior Employee

Re-employment Program for Retirees

In January 2007, Nihon Kohden introduced a re-employment program to rehire applicants as senior employees or senior part-time employees after their retirement at the age of 60. In February 2019, the Company also introduced a program that allows re-employed staff to continue working as managers. This program is intended to provide them with more opportunities to utilize their experience and exercise their skills. Additionally, in April 2023, we extended the retirement age to 65 (raised by one year annually) and revised the reemployment system.

Senior Advisor Program

With the goal of improving productivity, revitalizing the workplace, and motivating individual employees, the Nihon Kohden Group introduced in 2016 a Senior Advisor Program that enables postretirement senior employees to pass on the rich experience and skills they have cultivated over the years to younger workers.

Employment of Persons with Disabilities and Initiatives to Support them

Nihon Kohden has held seminars aimed at promoting the employment and a greater understanding of persons with disabilities. Our aim is to facilitate the creation of a working environment in which each employee’s individuality is respected, disability or not, and where they can work enthusiastically and to the best of their abilities.

Holding a Seminar Promoting the Employment and Greater Understanding of Persons with Disabilities

In January 2018, Nihon Kohden held a seminar for all executives and all managers in each department to support the employment of persons with disabilities. This seminar was intended to enable participants to acquire a basic knowledge about the characteristics of disabilities in order to create a workplace where all employees can work with peace of mind.
In February 2019, we also held a seminar for promoting the understanding of people with disabilities in preparation for welcoming them as co-workers.
Going forward, Nihon Kohden will continue to develop measures to create a workplace where everyone can enjoy doing rewarding work.

Promotion of Local Employment

Nihon Kohden aims to realize locally-oriented management by appointing appropriate personnel, regardless of nationality, to managerial positions at its subsidiaries in each country and region where the Company operates. The Nihon Kohden Group actively promotes local staff to executive positions at each of its subsidiaries, including the presidents of Nihon Kohden OrangeMed, LLC, in the U.S. that develops and produces treatment equipment, and Nihon Kohden America, LLC, a sales subsidiary in the U.S. As of FY2024, the rate of overseas subsidiaries led by executives hired locally is 48.8%.
Additionally, we employ approx. 930 people at our development, production, and sales facilities in North America, and approx. 840 people at our other overseas development, production, and sales facilities, including approx. 290 in China and 160 in India, bringing the total number of local employees to approx. 1,700.