Diverse Human Resources, Development and Participation of Human Resources : Long-Term Incentives and Rewards System for Employees | Sustainability

Retirement Allowance

Under the Company’s retirement benefits system, our defined benefit pension plan, defined contribution pension plan, and retirement lump sum plan are wholly or partially applied at all Group companies. Through these, we are responding to the diversification of lifestyles later in life and changes in forms of employment, while providing peace of mind and stability in post-retirement life. In line with the revision of our managerial track personnel system in FY2023, we have introduced a point-based retirement allowance plan for managerial track employees, based on duties and years of service. We also abolished the resignation payment rate that applied to resignation for personal reasons, in order to appropriately return employees’ degree of contribution to the Company to those employees. The result is a system that addresses the mobility of human resources while assuring the ability for employees to play active roles in the Company for a long time.

Commendations for Long Service

We use certificates of merit and supplementary awards to commend employees who have worked diligently for many years and are recognized as models for others to follow.

Years of service	Supplementary award
10 years	2-day leave and JPY50,000 in travel vouchers
20 years	3-day leave and JPY100,000 in travel vouchers
30 years	5-day leave and JPY400,000 in travel vouchers
40 years	3-day leave and JPY50,000 in travel vouchers or 5-day leave

President’s (General Manager of Division’s) Commendation for Achievement and President’s Letter of Appreciation

To commend efforts and achievements in line with the scale and results of outstanding contributions to the Company through everyday work, once per year the Company presents certificates of merit and supplementary awards or letters of appreciation from the president or from general managers of divisions to individuals, groups, or workplaces.

Commendations in FY2023

President’s Commendation
None
President’s Letter of Appreciation
Taganito HPAL Nickel Corporation (THPAL): 31 people;
Shinko Co., Ltd.: 293 people

Commendation for Achievements in Security, Occupational Health and Safety, and Environmental Preservation

Once per year, the Company presents certificates of merit to individuals or workplaces that have demonstrated significant achievements in security, occupational health and safety, and environmental preservation and that are recognized as models for others.

Commendations in FY2023

Excellent Employees
Toyo Smelter & Refinery (one person), Harima Refinery (18 people)
Long-term Zero Accidents
Numazu Business Site and Kounomai Business Site of N.E. Chemcat Corporation, Shinko Co., Ltd.

Employee Stock Ownership Association

The Employee Stock Ownership Association was launched in 1982 to assist employees with longterm asset formation. With the Company and Group company employees (including non-regular employees) as members, the association contributes funds from salaries and bonuses for the purpose of purchasing shares of the Company. The incentive from the Company is 12% of the contribution, with dividends reinvested as members’ stock purchase funds. As of March 1, 2024, the membership rate (SMM non-consolidated) is 37.8%.

Invention Rewards

The Company has established “Regulations for the Management of Patents, etc.” conforming to the Patent Act, and pays bonuses at the time of patent application and for results for inventions made by employees in their work. No upper limit is set on the results-based amount of bonus paid for inventions that contribute to business, which enhances employees’ motivation to create valuable inventions.