Initiatives on human rights and labor

We hold regular training sessions to eliminate harassment, including power harassment and sexual harassment, and to create a working environment that is comfortable for each and every employee.

The PRONEXUS Group responds to a wide range of consultations for various types of harassment (power harassment, sexual harassment, maternity harassment, etc.), and with a basic policy of “not engaging in,” “not allowing,” and “not ignoring” harassment, we have set up an external consultation service to enable early detection, resolution, and correction of problems.We also strictly manage the privacy of individuals including victims, witnesses, and perpetrators , and we prohibit any disadvantageous treatment on the grounds of having contacted our consultation service.
We also have a consultation hotline for women only, which is staffed by female employees from the Human Resource Department.

The PRONEXUS Group creates many jobs through its business activities.In this context, we endorse the content of various conventions, etc. related to children’s human rights, give consideration to ensuring that children's human rights are respected, and do not employ children who have not yet reached the minimum age of employment.We will also work to avoid violations of children’s rights in our business activities and engage in CSR activities in order to realize children's rights.

In response to the spread of COVID-19, we are actively making system investments, including the distribution of computers for working from home, and are building an environment that allows for working from home.
In addition to working from home, we have also secured places for employees to work when they are out of the office and for employees who have difficulty working from home, through contracts with telework offices, and this has led to increased productivity.
In order to make the workplace environment more comfortable, we introduced a casual dress code in November 2020 with the aim of improving physical comfort, work efficiency, and communication.

In order to ensure our employees can work in good health, both mentally and physically, and maintain well-balanced work styles, we have company-wide holidays (twice a year), special leave that can be taken in conjunction with family events (once a year), and special leave for long-term employees (10, 20, 30, and 40 years of service) (three to five times a year).

Since the COVID-19 pandemic, PRONEXUS has been promoting the use of working from home as a new way of working, but as the usage situation has become clear for each department and job type, we have introduced a “Work Style System” that is tailored to the way people work, with the aim of operating the system attentively according to the frequency of use of working from home.Specifically, we have defined the work style that focuses on coming into the office as the “office work style” and the work style that focuses on working from home as the “remote work style.” In conjunction with this, for remote work style, we have changed the method of paying the commuting allowance from the conventional method of paying the cost of a commuter pass to a method of paying actual expenses according to the number of days coming into the office, and we have also decided to pay a remote work allowance to take into account the burden of utilities expenses.

The Human Resource Department conducts interviews in order to understand the content of work, career orientation, and issues in the workplace, and to support the careers of each employee, and we are working to improve employee engagement by making system changes to accommodate some of the matters that were frequently requested by employees.

We hold regular health committee meetings at our head office and each of our business locations, and communicate information that is useful for health management.

We are applying the PDCA cycle to promote company-wide improvements to the work environment by sharing engagement surveys using the “Motivation Cloud” provided by Link and Motivation Inc., implementing action plans to solve issues, and conducting fixed-point observations through surveys focused on issues.

• This is an initiative to improve the company as a whole in a positive direction by understanding the issues facing the organization and the thoughts of employees through questionnaires, visualizing the gap compared to the company’s vision, and continuously implementing more effective solutions.

We have set aside days each month for health consultations with occupational physicians and counseling by clinical psychologists, so that employees can feel free to consult with them.In addition, we also provide regular training for managers to help them prevent the occurrence of mental health problems among their subordinates.

The Group has a system in place to award employees for their long-term service every ten years, recognizing their contributions to the formation of our corporate culture and the promotion of our business.Special bonuses and special paid leave are granted in accordance with the number of years of service at the time of the award.

Based on the PRONEXUS Group Health and Safety Policy, the Group places importance on the health and the mental and physical balance of our employees, and we are implementing the following initiatives in order to minimize the health risks of overwork.

In order to keep track of employee working hours, we have introduced a system that allows employees to check their work status on the intranet.If overtime exceeds a certain amount, an alert is sent to the supervisor and the employee to prevent overwork.

If overtime work reaches 80 hours per month, we arrange for an interview with an occupational physician based on a health checklist, and work on the health management of the employee.

We implement the following measures in accordance with the attendance situation in each department.
- Setting the maximum overtime hours per month
- Reduction in total working hours through increased operational efficiency brought about by the introduction of teleworking

In order to pursue the health and comfort of our employees, we will continue to review and improve these initiatives.

The PRONEXUS Group strictly adheres to minimum wages in accordance with the laws and regulations of each country.
We will continue to revise our personnel system to ensure that our employees can lead rich and stable lives and have a sense of fulfillment from their work.

The PRONEXUS Group promotes “diversity,” in which diverse human resources acknowledge and respect each other’s differences in attributes and values, and “equity,” in which we pursue fairness in providing opportunities, and furthermore, by making the most of the abilities of diverse human resources and elevating each other, we turn differences into the driving force for change through “diversity, equity and inclusion.”To this end, we will create a workplace with a high level of psychological safety where the human rights of each individual are respected and people can speak and act with peace of mind through a sense of mutual respect for each other and tireless dialogue.

The Company views its human resources as “human assets”, and in the midst of expanding business domains and major changes in business models, the Company believes that the sustained growth and medium- to long-term enhancement of corporate value of the Company will be achieved by having diverse human resources maximize their motivation and abilities. Based on this view, we are promoting diversity in human resources, work styles and employment, with the aim of creating a corporate culture and workplace that make the most of the “power of diverse individuals” of each and every one of our employees, who have diverse personalities, experiences and abilities.

• The number of personnel is as of March 31, 2024

The Company has 262 female employees, accounting for 29% of the Company’s 915 employees.The percentage has been increasing, from 18% ten years ago and 23% five years ago.
In terms of the ratio of new graduates hired, 29 of the 54 people hired in the last five years were women, and the ratio of women among employees hired has remained at around half.
The percentage of female managers is 4.9% (seven people), but we have appointed 11 women to positions that make them candidates for the next round of managers.
As the Company has more female employees in younger age brackets than male employees, we expect an increase in the number of female managers in the future.
At present, the Company is actively recruiting mid-career employees with the aim of strengthening existing businesses and taking on new business areas, and 210 people have joined the Company in the past five years.

＜Reference 1＞
Graph (Company personnel by age)

The percentage of mid-career hires among managers is 78% (134 people).
Due to the nature of our business, we actively recruit people who can make an immediate impact, and we have mid-career hires with a diverse range of backgrounds who are actively contributing.
At present, we have not set a target for the promotion of foreign employees to managerial positions because the number of foreign employees is small, but the Group has promoted several foreign employees to managerial positions.
In terms of employment of elderly workers, we have nine employees aged 65 and over.Going forward, we will continue to employ people up to the age of 70 when the needs of the Company and the wishes of the individual are aligned, and we will employ them in jobs that utilize the experience and abilities they have accumulated.
With regard to the employment of people with disabilities, we employ 19 people with disabilities, and we promote the acquisition of qualifications as a “working life counselor for people with disabilities” in departments where people with disabilities are employed, and we are creating a friendly workplace environment for people with disabilities.

As a measure to create a better working environment for employees, we have established a new system that allows employees to use their expired paid leave when they are sick or injured, or when they need to care for or nurse a family member.

In order to create an environment that makes it easier for women to continue their careers after pregnancy and childbirth, and to encourage men to participate in childcare, the Company has operated a system of shortened working hours for childcare that can be used until the end of the third grade of elementary school, as an initiative that exceeds the requirements of the law. The system was further expanded to include more shortened working hour shifts for childcare that can be chosen to suit individual lifestyles, and changed to enable limited use of shortened working hours for childcare from the fourth to sixth grades of elementary school, so that users of the system can prepare for full-time work.As a measure to support balancing work and nursing care, we have also increased the number of shortened working hour shifts for nursing care, in the same way as the system for shortened working hours for childcare.
In addition, the areas of service of the childcare leave consultation hotline, which has been operating with the aim of encouraging employees to take childcare leave, has been expanded to respond to a wider range of consultations that also include balancing work and nursing care.

We believe that people with disabilities working alongside other employees in the workplace will bring about the realization of normalization, and we have people with disabilities assigned to each workplace to work there.Furthermore, in addition to supporting employees in obtaining qualifications as working life counselors for people with disabilities, we also provide retention support for people with disabilities by having them meet regularly with qualified working life counselors.

The retirement age for the Group is 60, but we have established a re-employment system that allows employees to work until the age of 65, depending on their health and willingness to work.

Recognizing the close relationship between PRONEXUS’s business and society, PRONEXUS will promote interaction and dialogue with local communities and deepen mutual understanding in order to fulfill its responsibilities as a member of society.We believe that building relationships of trust with local communities and growing together is essential for the realization of a sustainable society.

PRONEXUS participates in the following organizations in Minato City, where its head office is located, and is working to resolve local issues.

- Minato Council of Social Welfare
- Minato Eco-Conscious Consortium

- Community clean-up activities
- Interactions with neighboring companies through information sharing
- Sponsorship and cooperation with festivals and events held in Minato City
- Interactions with local residents through volunteer activities

PRONEXUS conducts various support and educational activities in local communities, with the hope of contributing to the healthy growth of the children who will lead the next generation.

We hold factory tours for children in Toda City, Saitama Prefecture, where our factory is located, providing them with an opportunity to gain a deeper understanding of the local community and think about their future by learning about our business and how we work.

In cooperation with the local neighborhood association, we patrol the area around the Toda Factory to contribute to creating a safe and secure community for children.

Recognizing the issue of population decline in regional areas, PRONEXUS is creating employment in regional areas through the government-led policy of “regional revitalization.”
Our subsidiary ASP Communications is developing its business in Toyama City, and currently employs around 400 people, with the female employees accounting for more than 23% of the total.

Going back to our origin of the “client first principle,” we have established a system that allows all employees to fully demonstrate their abilities, with the aim of becoming professionals.

We assess the aptitude of our employees and assign those who are highly suited to specialist roles as “experts” or “specialist managers,” and those who are highly suited to management roles as “team leaders” or “group leaders,” issuing job titles that match the degree to which their abilities are demonstrated.The length of assignment for each position is one year, and the Human Resource Committee discusses and decides on the appointment and dismissal of each position from an objective perspective every year.In addition, for managers, we have implemented a multifaceted observation system in which superiors and subordinates evaluate the day-to-day management and actions of managers to make it easier for them to identify their own areas for improvement, and to improve management skills and promote self-development.

As part of our evaluation system, we use “work plans” to evaluate the level of achievement of individual goals corresponding to departmental goals on a semi-annual basis, and we perform evaluations by grade from the three perspectives of performance, ability, and role. In order to increase the persuasiveness of the evaluations, we hold evaluation committee meetings in each division, and correct for variations in evaluations and adjust evaluation distributions for each department.We also regularly conduct personnel evaluation training for managers.

In response to such systems, we are implementing systematic employee education from a medium- to long-term perspective.For personnel who have been promoted, we provide training on topics such as motivation and problem solving as a leader, and for those in managerial positions, we provide training on human skills for managing subordinates, training on improving management skills and mental health training.We also continue to provide training for sales personnel to deepen their understanding of the production process and production management at our factory, which leads to stronger collaboration between departments and improved client service.

As part of our employee training, we use our intranet to inform employees about the paid seminars we offer to clients, and encourage them to freely attend.

We believe that the development of human resources is the foundation of our personnel system, and we promote further improvement of abilities by conducting training by year and by level from a medium- to long-term perspective, as well as by fairly evaluating the level of contribution to the Company and reflecting this in their treatment.Furthermore, all employees can access the disclosure and IR business support site operated by the Company, and take online seminars.In addition, we also provide an external online learning platform, mainly for system-related employees.We have also introduced a 360-degree evaluation system for managers, and are promoting the development of human resources by evaluating them from a more multifaceted perspective.

As part of the revision of the personnel system, we have been restructuring the education system in parallel with the review of grade requirements, and since fiscal 2023, we have been implementing training based on the new grade requirements and new position requirements for each position.We plan to continue to implement assessment training and level-based training for each grade in order to develop the next generation of leaders.

After learning the basics of being a businessperson, such as business etiquette, working methods, logical thinking, presentations, and basic PC skills, we provide training in which work is experienced in a practical format in our main departments, with the aim of deepening understanding of the Company as a whole and developing human resources who can play an active role early on after being assigned.

We have our own training program for new employees who want to be assigned to the systems department, with the aim of developing human resources who can play an active role in the systems department even if they have no experience, so that they can learn the basics of a wide range of IT-related fields.

Each year, we select employees from each division who have made a significant contribution to the Company’s performance as special award winners, and conduct a study tour at our group subsidiary based in Vietnam, in order to develop global human resources.

The Group regularly conducts e-learning programs to improve employees’ knowledge of sustainability.

• Supplier Code of Ethical Conduct (Japanese)
• Declaration of Partnership Building (Japanese)

Since 2017, we have had a consultation and reporting hotline for partner companies, where any violations of the Subcontracting Act or related laws and regulations by the Group’s officers and employees can be reported.

In order to raise employees’ awareness of quality improvement, we hold regular case study exhibitions and briefings by on-site staff twice a year.

We evaluate the quality, technology, facilities, price and financial situation of partner companies based on our management regulations.In addition, we conduct annual reevaluations for ongoing partners.

We conduct procurement transactions based on “free, fair, and transparent” market principles.We evaluate the quality, technology, and prices, etc. of our suppliers and business partners based on our “evaluation chart,” and provide them with fair competition opportunities to increase the freedom and fairness of transactions.In addition, we regularly review the purchasing management regulations in order to create fairer rules that are more in line with actual conditions.

We hold “quality meetings” before and after the two busy seasons each year to improve information sharing and communication with partner companies.We utilize and ask for compliance with a “quality manual” to ensure thorough quality control, along with sharing issues and building systems during busy periods.In addition, our staff visit partner companies with which we have close relationships to hold meetings and share areas for improvement and provide guidance through direct dialogue with on-site staff.

As a corporate citizen, we place importance on strengthening relationships with local organizations, NGOs, and NPOs, in addition to building relationships with our employees, suppliers, business partners, and shareholders.

In particular, in forest resource preservation activities and community contribution activities, we aim to develop activities that better utilize the characteristics of both parties while receiving information and advice from these stakeholders.We are working to build long-term, positive relationships with OISCA, Minato City in Tokyo, the Minato Eco-Conscious Consortium (a group based in Minato City), the Council of Social Welfare, Toda City in Saitama Prefecture, Doshi Village in Yamanashi Prefecture, and Fuchumachi in Toyama City.

We aim to improve client satisfaction and contribute to society by carrying out activities that realize the PRONEXUS Group's quality of “insider information management , legal compliance, realization of client requirements, and stable supply of services.”All departments have set targets and are autonomously promoting activities.
In fiscal 2022, we started small group activities with the participation of all employees.In addition to continuously managing and improving the quality of our products, services, and work, we are also working on 82 themes with the aim of improving employee skills, fostering teamwork, and creating a fulfilling workplace, and we are producing results.

• QIC: Quality Insider Compliance

The results of surveys and research by department staff on the latest mandatory disclosure and IR trends in Japan and overseas are shared with relevant departments within the Company, and are used to help employees learn and to make proposals to clients.

We are actively participating in IR events and holding IR seminars, etc. in order to raise awareness of the Company and to enhance dialogue with individual investors.At IR events, we strive to set up more visually appealing booths and give easy-to-understand presentations.We conduct surveys of visitors to events and use the results to improve our IR activities.

We are also creating more easily understandable content for our shareholder reports and continuing our “Shareholder Survey.”Results of the survey are provided as feedback to shareholders, and shared with the management team and used to examine management strategies and IR measures.

We have been continuously conducting lectures at the “Corporate IR & Individual Investor Support Event” that is co-hosted with Radio Nikkei.The presentations are broadcast on Radio Nikkei and available on demand.

In addition, we post almost the same IR information in Japanese and English on our website to ensure fair disclosure to foreign investors.

In shareholder returns, the Company’s basic dividend policy is to conduct the stable, continuous payment of dividends, taking a comprehensive evaluation of business performance and the business environment into account. The Company’s standard for the consolidated dividend payout ratio is 50% or higher.(For the fiscal year ending March 31, 2021, the annual dividend was 33 yen (including a commemorative dividend of 2 yen for the 90th anniversary), and the consolidated dividend payout ratio was 52.5%)

The Company emphasizes share buyback for treasury in consideration that it will contribute to returning profits to shareholders and improving capital efficiency, and the total number of treasury shares held by the Company is 2.03 million shares, which is 7.1% of the total number of shares issued (as of March 31, 2021).

As a shareholder benefit program, we have a system that takes into account the number of shares held and the number of years they have been held, in the hope that shareholders will hold their shares for the long term.This is highly regarded by our shareholders as a measure that rewards long-term shareholders.

In order to fulfill our social responsibility as a corporate citizen, we are engaged in donation activities, community contribution activities, research activities the Company is uniquely positioned to do, and educational support activities.

In terms of donation activities, in addition to disaster relief funds, we continue to support the activities of the Japanese Red Cross Society, the “Great East Japan Earthquake Reconstruction Project” promoted by Keizai Doyukai (Japan Association of Corporate Executives), and the “Coastal Forest Regeneration Project” promoted by OISCA.We also continue to support Paralym Art, supporting artists with disabilities, and the Japan Para Rowing Association, supporting athletes with disabilities.

Meanwhile, PRONEXUS is also strengthening initiatives aimed at applying our expertise to society.The PRONEXUS Financial Disclosure Institute, which is our research organization, reports on research and expresses opinions through research on corporate disclosure.

The PRONEXUS Essay Contest that we began holding in 2009 with the intention of helping to foster young researchers receives a large number of entries every time, and 2017 marked its ninth contest.

As a new initiative, we started endowed courses at universities in fiscal 2016 (Meiji Gakuin University, Seijo University and Chuo University, as of October 2017).The courses include a total of 15 lectures and are recognized with credits as a subject in the second semester.PRONEXUS prepares the syllabus and content and our employees conduct lectures at the universities.

From fiscal 2017, we started sponsoring the Accounting Competition, an inter-seminar competition on research presentations in accounting and peripheral fields held at the Nihon University College of Commerce, and our employees serve as judges for the competition.

PRONEXUS plans and promotes CSR activities through 50 members of the CSR Promotion Committee made up of representatives from every department, who also work to build awareness.

At the head office, we participate in events hosted by Minato City, support and interact with special needs schools and international kindergartens in the ward, and continue to hold volunteer workshops for employees.

At the Toda Factory, we take part in local safety patrols and sponsor local events, and also hold factory tours for local children's groups every year.Furthermore, we conduct “local contribution paper” activities providing paper generated in the printing process in response to needs in Toda City, the Chamber of Commerce and Industry, elementary and junior high schools, and other areas.

The Osaka Branch, Nagoya Branch and the business locations of ASP Communications Co., Ltd. also strive to increase their activities with participation in events such as regular local clean-ups and considering collaboration, etc. with NPOs.

PRONEXUS believes that community contribution activities such as these lead to greater mutual understanding among employees, help to foster leaders and drive changes in awareness.

PRONEXUS is taking steps to enhance employee motivation through activities that support people who take on challenges.

Meetings to Share Best Practices in the Medium-Term Plan are held twice a year to share and support the achievements of every department throughout the entire company.

To give employees a sense of belonging and to boost motivation, we sponsor a variety of sports teams, including the Yokogawa Musashino Atlastars in the Japan Rugby Top East League, and the Toyama Grouses professional basketball team.

We plan and run a send-off party for the Tokyo Marathon as an event supporting employees entering the race.

We place the utmost priority on optimizing, streamlining, and reducing the burden of our clients’ disclosure operations, and are proceeding with investment in system development and building a structure to that end.

In addition to upgrading PRONEXUS WORKS, our core system for supporting disclosure operations, we are also focusing on developing systems to streamline, improve efficiency and increase accuracy in processes from front-end financial settlement to disclosure.Based on this concept, in addition to WORKS-i, which has been available since 2010, we released WORKS-Core in April 2017.This has enabled us to provide a more direct link with our clients’ financial settlement and disclosure processes, and to provide a wider range of business support.

We also worked to improve the functionality and client convenience of the FUND DOCUMENT SYSTEM (FDS), which provides disclosure operation support for investment trust companies, and the PRONEXUS REAMAS disclosure and management support system for Japan real estate investment trusts (J-REITs).

The Disclosure Consultation Departments provide consulting services such as providing information, advice and checking disclosure documents in response to changes in laws, standards and regulations related to disclosure.With an organizational structure based on themes such as the Companies Act, the Financial Instruments and Exchange Act, IPOs and J-REIT, around 80 dedicated staff members respond in detail to client needs.In addition, we have been regularly publishing handbooks and guidebooks since the 1970s as practical reference books in order to provide more detailed information and promote understanding(38 categories each year).

Since the Seminar Business Division first started holding disclosure-related seminars in 1988, it has expanded the scope of participants and themes, and now holds more than 1,000 seminars a year, with around 30,000 people attending.We provide seminars specializing in the practical needs and unique themes of listed companies and companies aspiring to become listed, targeting member companies and other businesspeople in general.

Departments in charge of IR have been co-hosting the Corporate IR & Individual Investor Support Event and Asazai IR Special Seminars with Radio Nikkei, which are projects related to the “Asa-Ichi Market Square Asazai” program that we have been providing on Radio Nikkei since 2012, and are continuously providing a forum for communication between client companies and individual investors.In addition, our IR consultants regularly hold free seminars for IR staff in major cities nationwide.

In addition to supporting disclosure operations through systems and consulting, the PRONEXUS Group also provides disclosure BPO services in which we undertake disclosure operations ourselves.In collaboration with DISCLOSURE Pro Inc., a company of certified public accountants and other specialists, we provide full support for everything from the preliminary preparation of disclosure documents to practical operations using our systems, from draft checking to TDnet disclosure and EDINET submission, and contribute to solving our clients’ issues such as improving operational efficiency, reducing costs, and overcoming resource shortages.

As part of our efforts to improve quality, we are promoting PDCA based on our quality management system, centering on the Company-wide Quality Measures Committee with the Quality Management Department acting as a secretariat, as we strive to raise quality awareness and speed up problem solving.In addition, we also participate in the New Production System, which carries out quality and productivity improvement activities that originate from the Toyota Production System, and we make use of these in our own improvement activities.Meanwhile, the sales department holds regular Quality Case Sharing Meetings for the department managers in charge, and we are working to share information and solve problems in order to ensure quality.