Included in the Group's Corporate Principles is "placing importance on personnel." Based on the idea that the source of the Group's competitiveness lies in the capabilities of its employees, we seek to raise productivity by enhancing employees' well-being* and to maintain high performance as an organization in the future. To this end, we are undertaking strategic measures to promote heath management.

• *Well-being: good physical, mental, and social condition

The Group appointed the executive in charge of human resources as Chief Health Officer (CHO) to promote health management. Executives from each Group company are also actively involved in the promotion. The Group issues a "White Book on Health" annually that analyzes the health status of all Group executives and employees. We also identify issues, and evaluate and improve our initiatives at a Group-wide "Promote Health Management Meeting" chaired by the CHO which is held every quarter, thereby implementing the PDCA cycle for health management.
As a result of these initiatives, we have been selected as a "Health & Productivity Stock," which is jointly organized by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange, for eight consecutive years.

Also, the Human Resources Department, General Health Development Centers (infirmaries), and Health Insurance Society closely cooperate and work together. The three parties collaborate with each other, planning and disseminating health measures, and have increased the effectiveness of such measures by exchanging opinions on a daily basis.

To measure the improvement of productivity through health management, we use presenteeism^*1 and absenteeism^*2 as indicators.

• *1The state of the employee's work execution ability and productivity declining as a result of coming to work while suffering from some disease or symptom. Calculated by conducting a survey in which employees evaluate their own work in the past four weeks with the work they can perform when having no illness or injury set at 100%. The smaller the value, the higher their productivity.
• *2The state of being absent or on leave due to illness. Calculated by conducting a survey that asks how many days employees were absent due to illness in the past one year. The fewer the days, the higher their productivity.

As the obesity rate tends to increase with age, it is necessary to increase health awareness when people are still young. The younger generation, in particular, has lifestyle issues, such as a high smoking rate in men and upward trends in the rate of skipping breakfast observed in both men and women. This suggests that measures to maintain a proper lifestyle are important, along with obesity measures.
As for the risk of lifestyle-related disease, the number of people with the level of risk requiring specific counseling guidance is trending upward gradually both in men and women.

• *We are explaining the group's health management initiatives to business partners who have made inquiries.

• *1 Target: Reduce the obesity rate for employees in their 30s by 30% from FY2018 by 2024 (men 20%, women 8%). From FY2021, the target was changed from the obesity rate at age 35 to the obesity rate for employees in their 30s.
• *2Sustainable engagement (Daiwa Securities alone). An anonymous awareness survey started to be conducted for Daiwa Securities alone in FY2021 to determine the proportion of employees who have a sense of trust in the Group and are highly motivated to contribute to achieving its goals. The survey is being conducted on a group-wide basis from FY2022.
• *3Ended in FY2021.
• *4Target: At least 25% by 2025.