Health Philosophy

The FANCL Group recognizes that the health of its employees is the foundation supporting its goal to "eliminate the 'negatives' of the world," which is our founding philosophy. In August 2017, we established a Declaration of Health Management, and in March 2018 we established the Health Support Office.
In recognition of our efforts, we have been certified as an "Excellent Health and Productivity Management Organization (Large Enterprise Category (White 500 status))" for seven consecutive years, and received Class AAA accreditation in the Yokohama Health and Productivity Management Certification for three consecutive terms.

FANCL Group "Declaration of Health Management"

< Slogan >
The greatest testament is for us to be beautiful and healthy

< Health philosophy >
The health of our employees is the foundation upon which the entirety of the FANCL Group and its commitment to health and beauty rests. With this in mind, as pioneers in the health food industry, we will promote the creation of a culture in which health is the top priority and ensure sound and healthy management while continuing to take on the challenge of creating new value and eliminating all the "negativities".

< FANCL Health Guidelines >
1.We will ensure the health of employees by making maximum use of our knowledge of preventive medicine and health foods.
2.We will create a positive and lively workplace where employees can work vibrantly.
3.We will make the physical and mental health of employees our top priority, actively undertaking primary prevention (preventing the onset of diseases or disorders).

< Employee Code of Conduct >
1.Each and every employee shall actively consume health foods in an effort to enhance their own health.
2.Each and every employee shall strive to embody health and beauty as advertisements for FANCL.
3.Each and every employee shall actively participate in health enhancing activities both inside and outside the company as experts in health and beauty.

CEO message

As FANCL Group continues to take on the challenge of eliminating the negatives in the world, we are actively promoting health management based on the recognition that the health of our employees is the foundation of our business.
The world is changing and evolving rapidly. We aim to be a company that will always be loved for our uniquely-FANCL characteristics. To this end, we will expand the scope of the challenges we take on, and aim to achieve more, at an even greater speed.
We will work proactively to create a workplace where employees can maintain their own health and beauty, and where everyone can work together with vitality and happiness.

August 2022
Kazuyuki Shimada
Representative Director, President and CEO
FANCL Corporation

Health Management Promotion Structure

The President and Representative Director is responsible for health management and promotes health management throughout the Group from a managerial perspective. The officer in charge of health management reports the results to our President, who is in charge of health management, and also to the Board of Directors.
To speed up health management initiatives, the Health Support Office serves as the health management promotion body, coordinating with human resources, health and safety committees, and employee representatives.
Six full-time public health nurses work at the Health Support Office. Together with doctors of internal medicine and psychiatry, they form a system that enables collaboration between the workplace and medical care. We support the health of our employees working at Group companies, factories, and stores nationwide. We have also introduced a health management system that allows employees to easily check the results of their health checkups and stress checks. We are developing a system that allows employees to easily consult with occupational physicians and public health nurses through e-mail exchanges.

We have created a strategic map for VISION 2030 and are implementing various health measures with the goal of improving employee performance.

Initiatives related to lifestyle-related diseases

Regular health checkups are given to all employees including those without social insurance and part-time workers. Employees aged 35 and over receive preventative health checkups for lifestyle-related diseases. Workers aged 50 years and over receive comprehensive medical examinations tailored to their age group. We have expanded the coverage of these medical checkups to include screening for cancers. The rate of employees receiving health checkups is 100%. Previously we didn't properly know whether employees who had been told to receive re-examinations or detailed medical examinations had actually had them, however, from the fiscal year ended March 2023 we have made efforts to properly understand their situations.
From the results of these medical checkups, we recognize that our employees include people who are at risk of hypertension, hyperglycemia, and hyperlipidemia. These conditions are major issues in the fight against lifestyle-related diseases. We have set a goal of reducing the number of people in each risk group, to prevent the onset of serious diseases. In the fiscal year ended March 2023, we held a blood pressure measurement promotion month at our Head Office to let employees know their blood pressure during work and to promote the habit of blood pressure measurement. The participation rate was 54.2%. We found that 17.3% of our employees who showed no blood pressure issues in medical examinations actually had blood pressures of 140/90 mmHg or higher when at work. We encouraged people with high blood pressure to measure their blood pressure daily. We gave them blood pressure health guidance and guidelines for medical visits. We will continue to promote blood pressure measurement.
We held a one-month trial breakfast at the employee cafeteria at our Head Office. Of the 30 participants, 13 (43.3%) had regularly skipped breakfast. A follow-up questionnaire revealed that 10 of the 13 (76.9%) who had routinely skipped breakfast in the past said that they would change their behavior and continue to eat breakfast after the trial. We found that eating breakfast improved productivity. Based on this result, we will permanently provide breakfast from the fiscal year ending March 2024.
Only 15% of our employees say that they exercise regularly, and we consider this to be an issue. From the fiscal year ending March 2024 onwards we will focus on exercise to help all employees to maintain and improve their physical fitness.
We support the implementation and achievement of specific health guidance by working closely with health insurance associations and coordinating their work with our employees. In the fiscal year ended March 2021, 70.7% of eligible employees participated in the program, and the achievement rate of continuous support was 91.9%. In the fiscal year ended March 2022, 34.1% of eligible employees participated in the program, and the achievement rate of continuous support was 100%.

FANCL Educational Healthy Eating Restaurant

In August 2017, we launched the FANCL Educational Healthy Eating Restaurant at staff cafeterias as a way for employees to begin learning about healthy eating. It is helping to prevent lifestyle-related diseases among employees by providing healthy, delicious, and satisfying meals as well as knowledge required to improve health.

The FANCL Educational Healthy Eating Restaurant and FANCL Healthy Menu have been certified by Kanagawa Prefecture as a MEーBYO BRAND. This status is awarded to brands that are global leaders in preventative health.

Facilitating Bicycle Commutes at the Headquarter Building

In consideration of the effective utilization of the FANCL building basement area as well as employee health and reducing the impact on the environment, we created a bicycle parking area in the basement of the FANCL Head Office building, and began offering permits for commutes by bicycle from April 2020.
Employees are putting this to good use.

Comment from an Employee who Commutes by Bicycle
"My commute only take about 10 minutes and it is really easy. It is especially enjoyable when the weather is fine.
It is also pretty good exercise and by the time I arrive at my desk, my brain is firing, and I am ready to work. Not having to ride a crowded train to work has reduced my daily stress, so it is good in terms of both health and work."

Initiatives related to mental health

In the fiscal year ended March 2023, the rate of absence from work due to mental illness was 1.86%. When we analyzed the reasons for absence from work, the most common reason was non-adaptation to changes in the workplace environment. In response to this finding, we provide training in mental health, such as self-care, care via Line messaging, and training in harassment issues to each level of our employees, including new-graduate hires, mid-career hires, and newly appointed managers. Our systems for handling mental health issues include an in-house consultation system that operates via Line group messaging, and interviews with occupational physicians, and talks with public health nurses. Our introduction of a health management system enables employees to feel free to discuss matters with public health nurses.
The results of a group analysis of stress checks showed that our score for "overall assessment of work enthusiasm in workplace environments" was 12.9 (the national average was 11.5 and the higher the score the better). In the fiscal year ended March 2022, although the national average for "overall health risk" was 100 (the lower the score the better), 3.9% of our departments scored 120 or higher. In the fiscal year ended March 2023, the rate rose to 5.6% so we introduced seminars (for all organizations) in which participants could discuss ways to solve workplace issues. All managers and their supervisors participated. In future, we will further refine training and implement more effective courses.
In the measurement of presenteeism, conducted at the same time as the stress check, 11% of respondents replied that they had sleep problems, a large proportion. Going forward, we will work to improve the sleep quality of our employees.

Intiatives related to cancer

As part of Company health checkups, employees can receive cervical, breast, and colorectal cancer examinations at no cost, depending on their age, leading to early detection and early treatment of cancer. Up until now, cervical cancer screenings have been available only to high-risk individuals over the age of 35. Employees in their 20s reported that was difficult for them to book and receive medical examinations on their own. Since the fiscal year ended March 2023, we have enabled employees under the age of 35 to receive the screening at the Company's expense. As a result, 76.7% of our female employees received cervical cancer screening subsidized by the Company. To further raise this screening rate, we will put out more information and make the environment surrounding bookings and screenings easier.
We have introduced our Associate Permanent Employee program that allows employees with cancer or other physical illnesses to work flexibly and for the number of hours and days of their choice, enabling them to balance work and medical treatment while maintaining their permanent employment status. In addition, we have a system in place that allows employees to consult with occupational physicians and public health nurses at any stage before, during, and after returning to work.
We created the Handbook for Supporting Work and Cancer Treatment that summarizes the support that cancer patients can access both inside and outside the Company, leave of absence programs available, their return to work, and work-life balance. We have told all of our employees about this handbook. By having not only the employee undergoing treatment but also their supervisor be aware of this support, we will build a system in which our Health Support Office and the workplace can work together and support each other.
We have been certified as an excellent company for the promotion of cancer prevention measures, receiving a Cancer Ally Gold Award in 2022.

Initiatives related to women's health

To deepen employee understanding of women's health and create a comfortable working environment, we conduct seminars on women's health, including female hormone balance. By the fiscal year ended March 2023 all of our executive officers, organization heads, general managers, and other managers above section manager had taken this course. In future, we will expand it to all employees. In addition, we are also spreading awareness of women's health to all employees, for example, by educating them on breast cancer self-examination using a breast cancer palpation model, and by holding seminars on uterine cancer. By ensuring that employees have the correct knowledge, we convey the importance of taking care of themselves and caring for those around them.

Initiatives related to giving up smoking

We are striving to raise awareness of smoking issues among both smokers and nonsmokers by having occupational physicians and public health nurses guide the giving up of smoking and by providing information on tobacco in conjunction with World No Tobacco Day. We are also making efforts to prevent smoking and passive smoking from both institutional and environmental perspectives. These include suspending the hiring of new graduates who smoke, prohibiting smoking during working hours, and completely banning smoking on Company premises. As a result, the smoking rate among our employees has been declining year by year, reaching 6.5% in the fiscal year ended March 2023, which is lower than the national average of 16.7% (according to the 2019 National Health and Nutrition Survey).
Going forward, we will further strengthen our efforts to reduce this smoking rate to 0%. In the fiscal year ending March 2024 we announced the FANCL Group's declaration of "No Smoking" and created no-smoking slogans to foster a work culture in which all employees are aware of the issue of smoking. Moreover, to make it easier for people who want to quit smoking to kick the habit, we invite smokers to take on the challenge of quitting together with "employee supporters" who support these smokers in their efforts to quit, and subsidize the cost of smoking cessation treatment.

The FANCL Group's "No Smoking Declaration"

One important FANCL Group health management initiative is our declaration to encourage employees to stop smoking.
We aim to be a company with zero smokers by creating an organizational culture in which all employees (whether they smoke or not) are interested in giving up smoking, and by creating an environment and systems that makes it easier to quit.

May 2023
FANCL Corporation

Kazuyuki Shimada
President & CEO, Representative Director

Initiatives related to infectious diseases

If a mass infection outbreak occurs, it will lead to increased anxiety among employees and a loss of our labor force. To help prevent this, we have taken initiatives that include maintaining a manual for employees who become ill, utilizing remote working, installing non-contact thermometers and alcohol disinfectants, and providing information on infectious diseases. This will create an environment where employees can work with peace of mind. Influenza vaccinations have been very successful. As a result of our Company subsidizing expenses and providing inoculations at workplaces, there have been no outbreaks of influenza at FANCL. We will continue to aim for 0 outbreaks by disseminating information and preparing an environment that encourages vaccination.
As the number of employees working overseas is increasing, we are also focusing on infectious disease prevention and education.

Status of paid leave utilization and overtime work

Changes over the past five years are shown in the ESG Databook.

Efforts to address excessive working hours

As part of our policy to promote work-life balance and create a space for efficient and productive work so that a diverse workforce can flourish, we have established an action plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children, as well as complying with local laws and regulations. We we promote the reduction of overtime work and conduct regular observations of employees who work excessive overtime. We also conduct hearings with departments with excessive overtime to encourage them to make improvements. In the event that an employee exceeds 45 hours of overtime per month, a meeting is immediately held between the employee and their supervisor, and a corrective report specifying improvement measures is submitted to the Human Resources Department by the head of the organization, and implemented to curb the occurrence of overtime work.
In addition, in order to prevent health problems caused by long working hours, in accordance with laws and regulations, employees whose overtime hours exceed 80 hours per month are interviewed by an industrial physician.

KPI

Items FY Mar/2023 Actual results FY Mar/2026 target FY Mar/2031 target
Health checkup Percentage of employees receiving health checkups

100%

100%

100%

Measures against lifestyle-related diseases Percentage of employees with blood pressure risks
(systolic blood pressure of 140 mmHg or higher or a diastolic pressure of 90 mmHg or higher)

5.6%

4.6%

3.6%

Percentage of employees with blood sugar risks
(HbA1c: 6.0% or higher)

2.7%

2.3%

2.0%

Percentage of employees with lipid risks
(LH ratio: 2.0 or higher)

24.2%

23.6%

19.6%

Mental health care Stress check group analysis
(Overall Risk: Percentage of employees with a stress score of 120 or higher)

5.6%

3.5%

3.0%

Measures against cancer
Note. Percentage of medical examinations paid for by the company
Breast cancer screening uptake rate (women aged 35 and older)
Note. Calculating the rate of those who can receive medical examinations once every two years from FY Mar/2023

82.4%

84.0%

85.0%

Cervical cancer screening rate
Note. Calculating the rate of those who are able to receive medical examinations once every two years from FY Mar/2023

76.7%

78.0%

80.0%

Women's health care Participation rate in seminars on women's healthcare

Managers and above: 100%

Executives: 100%

Permanent employees: 100%

Anti-smoking measures Percentage of smokers

6.5%

6.0%

5.0%

Measures against infectious diseases Number of infectious disease outbreaks

0 outbreaks

0 outbreaks

0 outbreaks

Interviews regarding long working hours Number of interviews regarding long working hours

3

0

0

Absenteeism Leave of absence rate (mental)

1.86%

1.83%

1.52%

Leave of absence rate (physical)

0.31%

0.30%

0.30%

Presenteeism A comprehensive evaluation of the organization's labor function
Note. Utilization of Wfun provided by Sompo Health Support Co., Ltd.

Judgment A

Judgment A

Judgment A

Work engagement Utrecht Work Engagement Scale (UWES)
Note. UWES is a scale that evaluates the vitality, enthusiasm, and degree of devotion to work.

2.6

2.7

2.8

Sustainability