Sekisui House : Human Capital

SEKISUI HOUSE

VALUE REPORT 2024

Human Capital	Success Stems from Personal
		Development	95
		Progress of Our Human Capital Value	96
		The Sekisui House Group's
		Human Capital Management	97
		Unleashing the Power of Our Employees
		to Enhance Human Capital Value	98
		Human Capital Management Strategy	99
		Supporting Self-Directed Career
		Development	101
		Diversity and Inclusion	105
		Promoting Diverse Workstyles	113
		Caring for Our Employees'
		Well-Being	116
		Alignment of Efforts	119
Boundary of Calculation
		Details	Boundary
	1	Sekisui House	Sekisui House, Ltd.
	2 Sekisui House and Major Domestic	Sekisui House, Ltd.
		Group Companies	Sekisui House Real Estate Group
		(excluding Konoike Construction)	Sekisui House Construction
			Sekisui House Remodeling, Ltd.
			Sekisui House noie Limited
	3 Sekisui House and Major Domestic	Sekisui House, Ltd.
		Group Companies	Sekisui House Real Estate Group
			Sekisui House Construction Group
			Sekisui House Remodeling, Ltd.
			Sekisui House noie Limited
			Konoike Construction Co., Ltd. and Domestic Subsidiaries
	4 Sekisui House Group and	Excludes Overseas Group Companies
		Domestic Consolidated Subsidiaries
	5	Sekisui House Group	Sekisui House, Ltd. and Consolidated Subsidiaries

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Business	ESG	Data
Strategy	Management

A Company Where People Grow

Nurturing Growth for People and Company

A company is built on its people, and the Sekisui House Group's primary driver of growth is enhancing the value of our human capital. How do we cultivate this growth in our employees? We believe the relationship between employees and the company is equal, and human talent grows naturally rather than being forced to grow. Similar to plants, the potential for growth lies within each individual from the beginning. This potential unfolds through budding, rooting, leafing, and eventually flowering, driven by personal efforts and dedication. I believe it is our responsibility as leaders to carefully cultivate an environment that enables this growth.

The Company offers various opportunities for challenges and platforms for success, and employees fully utilize them to foster their own growth. In this process, we deliver happiness to our customers and society, while fostering organizational growth and enhancing corporate value. As the Company grows, it will offer greater opportunities for challenges and more platforms for success to employees. By continually investing in our people, the Sekisui House Group strives to create a virtuous cycle of growth where both employees and the Company thrive together.

Creating Value through Employee Autonomy

person's sense of beauty, employee autonomy is essential. New value is created when employees, with a clear vision for their own life and work, bring their individualities and values. By engaging in mutual exchange and continuous improvement, they stimulate each other and generate new value.

Change to "Innovation and Communication"

As a member of the Sekisui House Group, it is necessary to share our vision and strategy, aligning on the overall direction. However, what each individual aims for beyond that varies from person to person. We value a mindset that transcends conventional thinking, embraces change, and integrates new ideas. Through innovation and communication, we continually offer new forms of happiness to our customers and to ourselves. As we continue to welcome new colleagues through career hiring and domestic and international M&A, I hope that our new colleagues will quickly integrate into the Sekisui House Group. At the same time, I encourage them to maintain a healthy sense of individuality and discomfort without conforming too much to their surroundings. The interaction and collision of diverse personalities and values will spark chemical reactions that give rise to new ideas.

Making Company the Happiest Place in the World

Satoshi Tanaka

Representative Director of the Board Executive Vice President, Executive Officer

In charge of Division of Administration and Human Resources

As we engage in business activities centered on housing, we have consistently adapted our business and human resource strategies to evolve with the changing nature of housing. The value the Sekisui House Group provides begins with ensuring the safety and security of people's lives and property. It then extends to the comfort of residents, environmental consid- erations, and creating homes that foster happiness through aspects such as health, connectedness and learning. To align with the diverse values of our customers and create unique forms of happiness that resonate with each

To realize our Global Vision, "Make Home the Happiest Place in the World," it is essential to make our Company the happiest place for our employees to work. Just as each customer has their own unique form of "happiness," the same is true for each employee. The Sekisui House Group strives to support the self-directed career development of each employee and promote diverse workstyles, creating an environment where employees can thrive with confidence and reach their full potential.

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Progress of Our Human Capital Value

Business	ESG	Data
Strategy	Management

Energy efficiency and generation

Thermal insulation,

soundproofing and security

Common space philosophy

Lifelong housing philosophy

Comfort and

Nature-positive

approach

Environmental Consideration

Creating asset value

Keinen bika, a philosophy

of timeless beauty

Prolonging home longevity

Health,

Safety

and

Connectedness

Slow living concept

Peace of

Mind

and Learning

Custom home design philosophy

Lifestyle Design

Platform house concept

Technical Expertise,

Seismic resistance,

Housing

Residents

Construction Capabilities,

Design philosophy

durability and fire resistance

Technologies

Customer Base

Assistance

Phase 1

Phase 2

Phase 3

1960-1990

1990-2020

2020-2050

Establishing training schools

Aligning of efforts

Human Resources

Implementing internal

Developing

Fostering

Building a foundation

certification program

Enhancing

Technical

Employee

Providing

for well-being

Developing skills by job type

Housing

Experts

Autonomy

High-Value

Encouraging diverse workstyles

and hierarchical level

Performance

Promoting

Solutions

Diversity

Advancing DE&I

Formulating training guidelines

Developing Advanced

Supporting career autonomy

Conducting career

autonomy training

Technologies

Actively recruiting female

Promoting paternity leave

sales representatives

Launching Sekisui House

Women's College

Creating Value Through Our Human Capital

Management Strategy

As the concept of housing evolves with the times, our Group's human capital management strategy continues to evolve as well.

In Phase 1, from 1960 to 1990, we focused on harnessing the latest technology and training skilled technicians in construction with the goal of driving innovation in the Japanese housing industry. Accordingly, in 1982, we established a training school and implemented an in-house certification program, along with unique education and training requirements. By maximizing the value of our human capital, we created value through housing safety and peace of mind, protecting lives and property.

In Phase 2, from 1990 to 2020, we emphasized promoting diversity in the development of advanced technologies to enhance housing performance and resident comfort. Beyond improving housing performance with energy efficiency and seismic resistance, we introduced universal design and proposed large continuous spaces with the Slow Living housing design. By recruiting diverse individuals with unique perspectives and experiences, and leveraging their distinct qualities and potential, we created value by improving the comfort of residents and becoming more environmentally conscious.

In Phase 3, from 2020 onward, we aim to offer happiness in housing tailored to the era of the 100-year lifespan. To achieve this, we are promoting initiatives to create an environment where employees with diverse personalities and values can autonomously continue to take on challenges and drive innovation.

The Group views our human capital management strategy as a key component of our overall management strategy and is dedicated to fostering an environment where everyone can thrive. In every era, the common quality we seek in our human resources is a mindset dedicated to pursuing personal happiness and acting on one's own choices. By recognizing and collaborating with each other, employees with diverse perspectives and values perform diligently, achieving sustainable personal and organizational growth alongside a strengthened competitive ability, thereby increasing corporate value.

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Business	ESG	Data
Strategy	Management

The Sekisui House Group's Human Capital Management

Enhancement of Corporate Value

Realizing Our Global Vision to Make Home the Happiest Place in the World

Human Capital Value Enhancement

Employee Autonomy		Alignment of Efforts

Approach to Human Capital

Fostering continuous growth in our employees is key for the Sekisui House Group. By investing in our employees, we aim to enhance their value, making both them and the organization stronger in providing new value to customers and society. It is our employees who will make this aspiration a reality. To achieve our Global Vision, "Make Home the Happiest Place in the World," we believe it is crucial to first make Sekisui House-the professional "home" of our employees-the happiest company in the world, creating an environment where they can maximize their potential.

The Sekisui House Group believes that enhancing human capital value comes from employee autonomy and an alignment of efforts. Employee autonomy involves actively behaving based on the spirit of our fundamental Corporate Philosophy of "Love of Humanity," while alignment of efforts means that Sekisui House's vision and strategies are fully understood and embraced by employees. If employees utilize company resources to independently shape their own career paths while aligning their efforts with the Company's vision and business strategy, the value created will result in tremendous growth.

Supporting Self-Directed

Career Development

• Self-directedcareer development education
• Career development support system
• Sekisui House Innovation & Performance (SHIP) Awards

Promoting DE&I

• Promoting the participation of women
• Promoting the participation of global human resources
• Promoting the participation of people with disabilities
• Promoting employee understand- ing of the LGBTQ+ community

Fostering Diverse

Workstyles

• Offering a variety of workstyle programs
• Expanding systems for fair evaluations
• Creating a workplace culture that ensures psychological safety

Caring for Our

Employee's Well-Being

• Assisting the pursuit of family happiness (encouraging male employees to take childcare leave, nursing care leave, etc.)
• Supporting health improvement efforts
• Continuing the Well-Being Survey

Alignment of Efforts

• Training leaders who will pro- mote and implement our Corporate Philosophy and strategies
• Recruiting and optimally allo- cating employees in line with strategies

The human resources strategy of our Sixth Mid-Term Management Plan (FY2023-FY2025) focuses on four important themes: supporting self-directed career development, promoting DE&I, promoting diverse workstyles, and building a foundation for well-being. Through system revisions and creating a corporate culture conducive to these concepts, we support and facilitate employee autonomy. To accelerate an alignment of efforts, we train leaders capable of properly promoting and implementing our Corporate Philosophy and strategies as we recruit and optimally allocate employees in line with these strategies.

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Unleashing the Power of Our Employees to Enhance Human Capital Value

Business	ESG	Data
Strategy	Management

An Equal Relationship Between the Company and Employees

At the Sekisui House Group, employees with diverse perspectives and values thrive due to changes in management and business environments, as well as initiatives to promote women's advancement and expand mid-career hiring. Following this trend, we have shifted from a relationship where the Company hires and utilizes an individual to a mutual selection process where both the Company and individuals choose each other, enabling employees to thrive and grow in such an environment. We strive to create an environment that allows individuals to authentically and securely discover opportunities for personal achievement and growth, maximizing their strengths and unique qualities. While proactively promoting diverse workstyles and implementing highly flexible work systems and operations, we foster self-directed career development and support skill improvement through our in-house certification program and expert instruction.

A Growth-Oriented Cycle to Accelerate Our Employee's Development

By empowering each employee to think critically, make decisions, and maximally leverage Company resources, we believe the value of human capital will be significantly increased. The Sekisui House Group creates systems and offers opportunities based on the following two mindsets.

• Individual growth cycles: An individual growth cycle is based on learning through self-directed career development cours- es, where employees enhance their experience and skills through education and opportunities encountered in their work.
• Organizational growth cycles: Organizational growth cycles involve employees transcending their department and joining projects that connect them with diverse talent, as well as engaging in dialogue with managers through career interviews.

Number of Employees (consolidated basis)

29,932 Of which, 1,323 are overseas

16,758 in the custom detached houses/rental housing

and commercial buildings business

2,494 in the architectural/civil engineering business

2,289 in the rental housing management business

2,947 in the remodeling business

1,807 in the development business

1,378 in the overseas business

336 in other businesses

1,923 in corporate administrative roles1

1 Mainly belonging to head office departments of Sekisui House, Ltd.

Number of

Employees²

72.2%
	27.8%
Men	Women
18,921	7,299

Number of New

Graduate Hires²

61.7%
	38.3%
Men	Women
565	351

Number of Employees by Age Group²

	50.1%
		29.9%
20.0%
Under 30	30-50	51 and above
5,251	13,132	7,837

Number of

Mid-career Hires²

70.5%
	29.5%
Men	Women
473	198
	2 Boundary	3

Innovation and Communication	Human Capital	DE&I

Organizational growth
Individual growth cycle
										Learning together
										and passing down
E-learning	On-the-job	Internal Human		Collaboration	Connections	techniques
	with SHIP
		training		Resources	Self-Directed Career
				Recruitment System
							Development Course
Internal and	Learning	Experience and skills	Opportunities			Internal mentors
external	Framework
training
								expansion from the
								individual to the	Conversations
Advanced study	Self-directed	Awareness of				organization
support systems	career devel-
		opment leave	self-directed career	Rotation
				development	Career coordination
										Bosses
										(career interviews)

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Human Capital Management Strategy

Business	ESG	Data
Strategy	Management

1. Governance

Important matters related to human capital policies are discussed, based on content, by the Personnel Affairs and Remuneration Committee, the ESG Promotion Committee or the Risk Management Committee, all advisory bodies to the Board of Directors. The results are then presented at Management Meetings or Board of Directors meetings, and Company-wide measures are implemented and managed. To promote our human resources strategy, the Human Resources and General Affairs Department, the Human Resources Development Department, the Diversity and Inclusion Promotion Department, and other related departments implement policies and manage KPI progress. Coordination between departments is fostered through discussions in the Social Improvement Subcommittee, which operates under the ESG Promotion

Promotion Structure

1 The Board of Directors delegates the authority to deter-

mine the amount of remuneration for individual directors

to the Personnel Affairs and Remuneration Committee.

Consult/ Delegate1

Board of Directors

Personnel

Affairs and

Recommend

Remuneration

Consult

Recommend

Consult

Recommend

Consult

Recommend

Committee

Risk Management

Management

ESG Promotion

Committee

Meetings

Committee

Social Improvement

Subcommittee

2 The Human Resource Value

Instruct

Report

Instruct

Report

Human Resources Value

Improvement Meeting2

Improvement Meeting is one

of three meetings conducted

Communicate

Report

by the Social Improvement

Subcommittee

policy

proposals

P.179 Social Improvement

Human Resources and General Affairs, Human Resources Development,

Subcommittee

the Diversity and Inclusion Promotion Department, ESG Management

Promotion Headquarters, and other Company departments

Group companies

Committee. We have also created a Group-wide system to receive reports regarding issues affecting the Group and KPI progress.

2. Strategy

Fundamental mindset

Employee autonomy relies on each individual utilizing the resources of our Group, taking proactive steps, and continuously focusing on their career devel- opment. Accordingly, we are focused on building systems and environments that support sustainable growth for both employees and the Company. We also promote the creation of environments that enable individuals to fully develop and utilize their abilities while working in their own way, regardless of age, gen- der, nationality, or disability. We continue to proactively implement and operate highly flexible working systems suitable for various workstyles. While systematically nurturing high-integrity leaders, we also strive to recruit the talent necessary for our business strategies and ensure they are appropriately allocated.

Fundamental policy for human resource development

To achieve the Sekisui House Group's global vision of "making home the happiest place in the world," with its policy of "maximizing the value of human capital and driving business growth through diversity and inclusion of knowledge and experience," we promote initiatives aimed at talent development.

Policy for developing working environments

Basing our mindset on the idea that it is important to make our Company, a "home" to our employees, the happiest in the world, we seek to become a company where everyone can feel their work is meaningful and satisfactory. We are developing a working environment that encourages the promotion of important measures such as support for self-directed career development, promotion of DE&I and diverse workstyles, and building a foundation for well-being.

3. Risk Management

The relevant departments analyze risks and opportunities related to human capital. The Social Improvement Subcommittee then evaluates countermeasures and holds discussions, fostering cross-department cooperation. When risks and opportunities are determined through this process to be especially important, the ESG Promotion Committee, an advisory body to the Board of Directors, reviews them before making a report to the Board in connection with our mid-term strategic plans. Each Group company monitors the Company's risk map, and after reporting on important matters to the Risk Management Committee, such as those related to securing human resources, they conduct studies and management through the Group-wide risk management structure.

For the Sekisui House Group to achieve sustainable growth, it is essential to secure excellent human resources capable of developing its existing businesses and taking on challenges in new businesses. By formulating our human resources plan, we further clarify the human resources necessary to execute our business strategies. We are proactively enhancing our branding as an employer of choice, diversifying our recruitment pipeline and selection methods, and employing human resources regardless of age, gender, nationality, or disability.

4. Metrics and Targets

In the Sixth Mid-Term Management Plan, we have set 17 individual KPIs.

P.60 Indicators and Progress

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Human Capital Management Strategy

Business	ESG	Data
Strategy	Management

Talent Acquisition

New graduates

We have actively promoted the employment of new female graduates since 2005 as a business strategy amidst society's rapidly diversifying housing-related needs and changing lifestyles. By establishing an environment where diverse individuals can participate, we aim to increase our retention rate and facilitate organization-wide growth.

Mid-career and specialist talent recruitment

We are also proactively recruiting talent with specialized skills that can become immediate assets. We consider the diversity and inclusion of knowledge and experience-where individuals of different nationalities and professional backgrounds contribute new perspectives and expertise-as a crucial strategy for fostering organizational diversity and development. Various methods of onboarding are in place, along with a system and compensation structure that appropriately evaluates individual expertise and abilities. We also encourage the assignment of mid-career hires to managerial positions, creating environ-

HR Programs and Processes

In addition to efforts focused on diversity and inclusion and workstyle changes, with the goal of supporting self-directed career development, we positioned 2021 as the kickoff year for reforms to our HR programs and processes and revised our grading, performance evaluation, and compensation systems. Reforms to HR programs and processes are also carried out at Group companies.

Effective communication between supervisors and their team members is essential to understanding one's own strengths and individuality. To support this, we have established a system of career interviews, in which supervisors and team members discuss careers regularly. These interviews aim to share employees' values and ideas about their careers, as well as to support their growth by providing appropriate feedback on their individual strengths and key aspects of their development.

P.115 Career Interviews

Outline of New HR Programs and Processes

Implementing multiple career tracks to managerial positions

We have established two types of career courses for managers: direct managerial positions and specialist positions that contribute to the organization through high-level expertise. We implement human resources systems so that employees can choose their own future career course.

Managerial promotion system

As part of the revision of our personnel system in April 2022, the number of grades for non-managers was reduced from nine levels to five, creating a system for the early promotion of talented employees to manager. Starting in April 2023, we further accelerated this process and revised the rules to allow employees to be promoted to managerial positions after a minimum of five years with the Company. This establishes promotions and appointments based on individual ability and merit, regardless of age or years of service in the Company.

ments where specialized human resources can maximize their potential.

						(FY)
Metrics		Boundary	Unit	2021	2022	2023
Number of new	Male		Persons	397	434	565
graduates hired	Female	1	278	350	351
Number of mid-career	Male	Persons	-	417	473
hires	Female		-	186	198

For the boundary of the data, click here (content from page 94 will open in a new window). 1 2 until FY2022, and 3 in FY2023

Key points of personnel system reform

Self-directed career development

• Career course selection
• Early creation of management opportunities
• Fair and transparent appraisal
• Career interviews with supervisors
  SpecialistsManagers

Regular employees

Main features of the revised personnel system

Double track course (managers)

Courses and • Introduction of role classes for managerial positions

grades • Managerial (M) positions that contribute to the organization through management

• Specialist (SP) positions that contribute to the organization through high-level expertise

Promotion according to merit (non-managers)

Promotions • Promotion decisions based on merit, not on age or years of employment

• Early promotion of highly evaluated employees (promotion to manager possible in as few as five years)

Fundamental revision of personnel evaluations and enhancement of job interviews

• Ability/behavior review and performance review are separated.

Evaluations • Ability/behavior review is reflected in class changes and salary changes, while performance review is reflected in performance bonuses.

• Process for self-assessment (individual and organizational), approval and evaluation finalized, and evaluation system developed •Interview training

	Career emphasis and talent management
Training and	• Self-assessment of career plan and self-emphasis of one's ability/knowledge/experience
transfer	• Periodic career interviews five times a year
• Human resource matching utilizing the talent management system
	• Human resources recruitment system

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Supporting Self-Directed Career Development

Enhanced Awareness of Self-Directed Career Development

Business	ESG	Data
Strategy	Management

Self-Directed Career Development Course

The Group believes in the importance of initiatives that promote the continuous career development of employees through the proactive use of Company resources. Thus, in 2003, we began a self-directed career development course. We are convinced that having employees consider their own individual lives is the first step on the path to autonomy. We held our first self-esteem improvement seminar in 2006, and in 2013, we introduced mid-career training.

In 2022, we updated our self-directed career development course, originally offered in the seventh year of employment, to create the Self-Directed Career Development Course III, cultivating flexible career awareness that can accommodate societal and environmental changes with a more future-oriented, strategic mindset. In 2023, we revised the target participants and content of our mid-­career training, renaming it the Self-Directed Career Development Course IV. This revised course is designed to address role changes and expanded responsibilities as careers mature, with an emphasis on developing individualized leadership. In addition, to effectively connect experiences from one's early career days to real growth, we have established the Self-Directed Career Development Course I for new employees, and the Self-Directed Career Development Course II for second-year employees. A total of 18,962 employees have attended these training courses as of January 31, 2024.

Participants in Self-Directed Career Development-Related Training		(FY)
	Boundary		Unit		2021		2022		2023
Participants in self-directed	1
career development-related		Persons		-		16,987		18,962
training

For the boundary of the data, click here (content from page 94 will open in a new window).

Various Support for Employees' Self-Directed Career Development

Following each phase of the self-directed career development course, we offer multifaceted support to help employees take charge of their careers and engage enthusiastically in their personal development.

My Career Sheet

We introduced My Career Sheet as an important tool to further improve employee autonomy in career development and enhance human capital value. The sheet shows an employee's experience and skills, connecting them to their self-driven learning and growth. Proactively emphasizing these experiences and skills in career interviews will, we expect, lead employees to take on new challenges and be presented with new opportunities.

Advanced Education Support Program

This program provides advanced learning opportunities to employees currently involved in management who are future candidates for senior management, as well as those we expect to significantly contribute to future business performance through research or leadership in specific fields. It also supports employees obtaining MBAs or participating in Master of Technology (MOT) programs through designated schools that can be attended while working. The Company supports the cost of education for employees who pass internal examinations, and department heads can recommend temporary employment at graduate universities to foster operational growth and expansion. Since its inception in 2023, 11 people have advanced their education through this system.

Career Development Leave

Employees who seek education at approved domestic or foreign educational institutions and meet a set of standardized conditions may, as a part of autonomous career development, take a leave of absence to study at domestic institutions for a period between three months and one year, or up to two years at foreign institutions.

Understanding and Responding to Risks in Training

The following PDCA cycle for training programs helps us transfer various lessons learned in training to the workplace.

Overall

We clarify the purpose of the training, determine the quality and retention levels from participant surveys, use that as a reference for future training, and continually improve the quality of programs, textbooks, and instructors by incorporating external knowledge.

Investment in Human Resource Development					(FY)
				Boundary		Unit		2021		2022		2023
Investment in human	1		Millions		-		886		1,526
resource development		of yen
For the boundary of the data, click here (content from page 94 will open in a new window).
1 FY2022	2, FY2023	5
Investment in Training and Ability Development					(FY)
				Boundary		Unit		2021		2022		2023
Training time						7.6		6.7		7.2
Key		Human relations					3.0		3.0		3.0
	training			Hours/
	1
training
	Compliance		person
programs				1.0		1.0		1.0
		training
Other training programs2					3.6		2.7		3.2

For the boundary of the data, click here (content from page 94 will open in a new window).

2 Other training programs include training for managers and other staff to prevent sexual harassment and abuse of authority, as well as career autonomy courses and training for new leaders.

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Supporting Self-Directed Career Development

Career Development Support Programs

Business	ESG	Data
Strategy	Management

Effective Workplace Training Programs

To support employees in their individual drive for self-improvement and continuous learning, we offer ability development programs for every job type, establishing education in line with our employees' specialties.

Sales Representatives

In the three-year training program for detached home sales, employees learn a customer-centric approach and a broad range of specialized knowledge and skills for housing sales. Since the program's launch in FY2018, a total of 2,044 employees have participated in the program.

Designers

Designers spend the first two years with Sekisui House in the entry-level program to acquire the necessary specialized knowledge. As of FY2023, a total of 1,136 people have participated in the training. Then, in the intermediate pro- gram, which lasts until the fifth year, they take systematic training courses to improve their expertise in their respective roles. Subsequently, employees are able to select and participate in training tailored to their expertise and acquire in-house certifications such as Chief Architect.

In-House Certification Programs

Through our in-house certification program, we recognize the skills and abilities of our employees, supporting their autonomous career development and growth. Through this system, employees receive education on the specialized skills and knowledge necessary for their positions, striving to achieve a high level of professional proficiency. This in-house certification program covers a variety of jobs and specialization fields. Certification requires not only the acquisition of practical experience and expert knowledge but also assessments through practical tests and presentations. Through our in-house certification program, employees not only receive opportunities for self-growth, but can also demonstrate their expertise and abilities, contributing to greater organizational capability.

Qualification Grant

To motivate employees to continue their self-development, improve their aware- ness, and strengthen their commitment to skill development, we have established a system to give cash rewards to employees who acquire qualifications through national or certification examinations. We also subsidize course fees

and support qualification acquisition for employees who obtain major qualifications required for their work, such as and financial planners, first- and second -class architects, first-class building operation and management engineers, registered real estate transaction agents, and certified skilled professionals of financial planning. This support helps raise employee awareness and motivation.

Cumulative Number of Workers Who Have Acquired Major Qualifications

Required for Specific Duties							(FY)
			2021		2022		2023
KPI	Boundary	Unit
Results		Results		Targets	Results
Cumulative number of
workers who have acquired	1	Persons	22,940		23,608		24,100	24,566
major qualifications1
required for specific duties

For the boundary of the data, click here (content from page 94 will open in a new window).

1 Major qualifications: Eleven total qualifications (employees are counted for each qualification they hold; excluding retirees): first- and second-class building operation and management engineer; first-class building, construction and management engineer; first-class civil engineering works execution managing engineer; first-class landscape gardening work operation and management engineer; first-class plumbing work operation and management engineer; first-class electrical construction management engineer; registered real estate transaction agent; and first-,second-, and third-grade certified skilled professional of financial planning

Construction Technicians

We have systematized the specialized knowledge and skills required onsite, providing learning opportunities centered on the acquisition of specialized qualifications and skills for crafters, including those at partner building con- structors. After opening the first Educational Training Center and Training School in 1982, we now hold training at three locations across Japan. Over the past 10 years, a total of 734 trainees have participated in courses. Trainees continue to improve their skills and techniques even after completing training school by participating in training programs at education and training centers according to their work experience and level.

In-housecertifications (for Sekisui House (non-consolidated) as of the end of FY2023 with the exception of Renovation Chief Architects)

Design: Chief Architect	The Chief Architect program was established to develop designers who support the creation of quality houses. By granting the role and qualification of Chief Architect, the
Certified individuals: 319  Certification period: 2 years	program aims to further improve skills of designers.
Design: Renovation Chief Architect	We promote the renovation business at Sekisui House Remodeling, Ltd. by granting the role and qualification to top-level designers who meet standardized conditions, fur-
Certified individuals: 8  Certification period: 2 years	ther refining their abilities.
Design (Platinum business): Platinum Specialist	To promote what we call our platinum business (housing for senior citizens, welfare buildings for children, people with disabilities and others, medical facilities, etc.), we
grant the role and qualification of Platinum Specialist to employees engaged in design who have an excellent track record and advanced expertise, further improving the
Certified individuals: 45  Certification period: 3 years
abilities of our platinum property designers.
Structural planning: Structural Planning Specialist	This certification program was established to foster designers who play a leading role in structural planning at offices. The purpose of the program is to improve the safety
Certified individuals: 214  Certification period: 3 years	and efficiency of structural planning by granting the role and qualification of a certified Structural Planning Specialist, further improving the abilities of our designers.
Onsite supervisor: Chief Constructor	We have trained numerous excellent on-site supervisors who engaged in routine work aiming to acquire this certification, improving our brand power and productivity. By
Certified individuals: 143  Certification period: 2 years	granting the role and qualifications of Chief Constructor to especially outstanding onsite supervisors, we aim to elevate the level of onsite supervision.
After-sales service: Customer Support Meister	To increase the number of customers who choose our Company, this certification recognizes employees who excel in customer support and take the initiative in their duties
Certified individuals: 63  Certification period: 1 year	with a high level of skill and abundant knowledge. This certification aims to further improve the abilities of our employees who handle customer support.

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SEKISUI HOUSE	Contents	Part I OUR VALUE The Sekisui House Group	Journey of	Future of Value Creation	Part II OUR ENGAGEMENT
VALUE REPORT 2024	Value Creation

Career Development Support Programs

Business	ESG	Data
Strategy	Management

Career Challenge Program

Based on job type, job content and expected future duties, our employees are categorized into three groups: Sales Engineering job group (main career track), Production Skills job group, and General Clerical/Regional Employees job group (includes employees working in specified areas). Our personnel systems are operated according to the characteristics of each job group in terms of training and basic compensation.

The Career Challenge Program aims to expand these opportunities, offering employees the chance to pursue various careers. It also supports the movement of employees from the Production Skills and General Clerical/ Regional Employees job groups to the Sales Engineering job group (main career track). Applicants submit a career vision sheet with their application, reflecting on their past work experience and contemplating their future career, and then take a two-day training course. Upon completion of the training, applicants clarify their career vision after job group conversion, resubmit their career vision sheets, and go through the interview process with the chief manager of the affiliated department.

Career Coordinate for Internal Mobility

We have set up a tool to allow direct communication of career transfer-related requests to our Personnel Department, allowing our employees to individually fill out information on whether they would like to transfer, their desired transfer location, their desired transfer period, their reason for transfer, and the experience and skills they will bring to the new location. Career Coordinate, introduced in 2023, supports employees in requesting transfers beyond their current department, matching qualified human resources that meet standardized conditions with transfer locations and facilitating communication between the Personnel Department and various headquarters and departments.

Career Coordinate

Employee needs and	Organizational needs
human resources profile

Training for Employees on Environmental Initiatives

When introducing our eco-friendly homes to customers, it is important to provide an explanation based on sufficient knowledge. For this reason, we implement a wide range of education and training programs for our employees.

Green First Training

Our Green First¹ eco-friendly homes are central to our efforts to combat global warming and are at the core of our product strategy. Therefore, it is essential to have a deep understanding of the societal background and national policies, as well as technical elements, system content, and aspects that must be explained to customers, such as the economic benefits and details of public subsidy programs. For this reason, we have been conducting a group training program called the Green First Training.

In the more than fourteen years since the launch of Green First homes, our offerings have evolved into ZEH for both detached houses and multiunit housing complexes. Currently, the quality of our training has improved thanks to the use of tablets and the development of online learning environments. Training is

Since the program began in 2006, 328 people have changed their job group. There were 98 applicants in FY2023, of whom 90 successfully changed their job group to advance their careers.

Number of Applicants and Actual Converts under the Career Challenge System

(FY)

Transfer requests

Experience and skills

Human

Evaluations resource profile

Contracting

Stock

Development and international

Head office

intended not only for sales and technical staff at new construction contractor offices, but also for customer service employees involved in after-sales mainte- nance, as well as Sekisui House Remodeling employees in the remodeling divi- sion, and Sekisui House Real Estate employees who handle ZEH rental housing. As of FY2023, we have held training courses a total of 707 times, and more than 41,700 employees have taken these courses. In FY2023, 27 courses

	Boundary	Unit	2021	2022	2023
Number of applicants		31	32	98
	1	Persons
	27	30	90
Number of job group converts

1 Sekisui House, Ltd., Sekisui House Real Estate Group and Sekisui House Remodeling, Ltd.

Transfers occur after matching affiliated organizations, receiving locations and the employee's personal career goals

were held, with more than 3,700 employees participating, partly due to making videos of the courses available online for repeated viewing.

1 The name of our eco-friendly home brand launched in 2009. Each highly insulated and airtight house is equipped with a solar power generation system and fuel cells. Since 2013, we have focused on Green First ZERO, which conforms to ZEH standards.

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