[Ⅶ. Creating a Safe, Fair, Motivating Work Environment] Creating a Better Workplace Environment Promoting Occupational Safety and Health

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1 [Ⅶ. Creating a Safe, Fair, Motivating Work Environment] Creating a Better Workplace Environment Promoting Occupational Safety and Health *Self evaluation: Achieved more than targeted / Achieved as targeted / Achieved to some extent Fiscal 2014 Objectives Reduce work accidents, equipment and environmental accidents, and company car accidents To reduce mental problems and illnesses, strengthen and promote measures to deal with their possible causes, such as long work hours and power harassment Make "Healthy Sharp 23" (name of program with targets and measures for employee health by the end of 2023) an integral part of the workplace, build systems and promote concrete measures Fiscal 2014 Achievements Work accidents increased, while company car accidents decreased Established a Labor-Management Committee on Working Style Reform through cooperation between labor and management; carried out measures to reduce long working hours (survey of working hours, formulation of measures based on findings, and horizontal deployment of initiatives at business sites, etc.); pursued initiatives to eradicate power harassment (enhancing consultation functions, holding training for all managers, etc.) Increased awareness of the Healthy Sharp 23 initiative and promoted specific measures Self Evaluation* Reduce work accidents, equipment and environmental accidents, and company car accidents Priority Objectives for Fiscal 2015 Reduce loss of working days due to mental problems and illnesses Review a promotion structure for health management and conduct initiatives based on Healthy Sharp 23 goals Eliminate accidents resulting in lost workdays Medium-Term Objectives (up to Fiscal 2017) By the end of fiscal 2017, reduce by 10% or more (compared to fiscal 2013) the total number of sick leave days taken due to mental problems and illnesses Establish a health management promotion structure Achieve Healthy Sharp 23 numerical targets (reduce the percentage of employees who have a BMI of 25 or higher to 23.3%, smoking rate to 21.7%, and achieve a regular exercising rate of 28.3%)

2 Basic Policies on Safety and Health

3 Organization Promoting Safety and Health Although the Sharp health insurance association was primarily responsible for maintaining and promoting the health of its employees and their families, from April 2014 Sharp decided to fully implement health measures in addition to its framework on safety and health activities. In order to show Sharp's resolve, the Central Safety and Health Committee was renamed the Central Safety, Hygiene, and Health Committee. The Sharp Group's Safety and Health Management organization structure is shown in the chart below.

4 Aiming for a Secure, Safe, and Healthy Workplace In order to ensure that activities for the maintenance and improvement of safety, hygiene, and health go smoothly at each business location, Sharp holds Central Safety, Hygiene, and Health Committee meetings that bring the company and the labor union together to decide basic measures for safety, hygiene, and health from a company-wide perspective. The Committee formulates annual company-wide policies and basic measures, and promotes the implementation of these measures at business locations. It has also organized a team consisting of Central Safety, Hygiene, and Health Committee members to conduct safety and health inspections at each site. Moreover, a Safety, Hygiene, and Health Committee consisting of labor and management representatives at each business location holds a monthly meeting to report and discuss safety, hygiene, and health activities and decide on improvement measures. A Safety and Hygiene Council at each business location holds meetings in which subcontractors who are permanently stationed within Sharp sites also take part. Participants discuss liaison and coordination among related operations and share information in an attempt to improve the safety and hygiene management system for the entire business location. The result of these continuing measures is that the Sharp Group's *1 industrial accident rate (frequency rate of industrial accidents *2 leading to lost work time) in Japan in 2014 was This rate is consistently below the national average for the manufacturing industry. *1 Sharp Group in Japan: Sharp Corporation, SEMC, SEO, SESJ, SBS, SEK, SMS, STC, ideep Solutions (SDP, SFC, OSS, and SOR are not included in 2012) *2 Indicator that represents the incidence of industrial accidents per million work hours (one day or more of suspended operations) *3 Averages for all industries and the manufacturing industry are based on a survey by the Japanese Ministry of Health, Labor, and Welfare.

5 Promoting the Introduction of the Occupational Safety and Health Management System Sharp is promoting the introduction of an occupational safety and health management system in an effort to further address the potential risk of accidents in the workplace and to firmly set in motion proactive safety activities that prevent or reduce risks. By fiscal 2010, 11 of Sharp Corporation's domestic production sites *4 had acquired OHSAS certification *5. In order to implement preventative safety measures similar to those at its production sites, Sharp's non-production sites and affiliates are conducting their own original occupational safety and health management efforts, which include surveying workplace risks and using the findings to improve occupational safety and health. As part of its efforts to raise the standard of its occupational safety and health management, Sharp is working to have its overseas manufacturing bases in each country acquire OHSAS or other certifications. *4 As of the end of fiscal 2014, 10 of Sharp Corporation's domestic production sites and affiliated companies have acquired the OHSAS certification. *5 One of the occupational safety and health management system certification standards; it is the most widely used standard around the world today. OHSAS Certified Sites, Affiliated Companies and Overseas Bases Japan Overseas Tochigi, Kameyama, Mie, Yao, Sakai, Nara, Mihara, Fukuyama, Hiroshima, Sharp Mie Corporation SSI (Indonesia), WSEC (China), SATL (Thailand), SMTL (Thailand), SUKM (UK) Enhancing Mental Health Care and Expanding the Support System for Employees Taking or Returning from Medical Leave In order to help employees avoid mental illnesses or deal with them at an early stage and to support employees on medical leave in making a smooth return to work, Sharp in Japan has a counseling system with medical specialists or industrial counselors at main offices and plants. The company also conducts various training and educational activities to deepen employees' knowledge of mental health care and to have them acquire methods for dealing with mental health issues. Also, as part of its periodic health checkups, Sharp carries out mental stress checkups on all employees by self-diagnosis. (There was a 97.7% participation rate in fiscal 2014.) For employees who are diagnosed with high stress levels, Sharp provides one-on-one counseling through industrial physicians or counselors. By enhancing mental health measures for primary, secondary, and tertiary prevention of mental illness, we will boost the execution of systems and strengthen measures to deal with the causes of mental problems and illnesses such as long work hours and power harassment and in doing so create a workplace where employees enjoy rewarding jobs and where there are fewer cases of mental problems and illnesses. Programs for Mental Health Care <Primary prevention> Sharing knowledge and awareness through job-level-specific mental health group work training Distributing a Workplace Mental Health Handbook to all employees Holding certification tests for mental health management at the company <Secondary prevention> Providing mental stress checkups simultaneously with regular physical checkups for all employees Providing face-to-face counseling at main sites by company counselors or medical specialists Giving advice by , phone, or in-person counseling through specialized outside organizations Counseling for those employees who have experienced major changes in their environment, such as transfer, transfer not accompanied by family, and job promotion

6 <Tertiary prevention> A support system that provides ongoing communication with employees on medical leave from work A support program to help employees who were on medical leave make a smooth return to work, in cooperation with an industrial physician, one's assigned department, and the General Affairs Department Providing a trial period for employees who were on medical leave to support their return-to-work training Activities to Promote and Maintain Health Sharp has in place a number of measures aimed at supporting the health of employees and their families. These measures include the following: guidance for people whose health checkups show they need help, health seminars at Sharp sites around Japan, lifestyle improvement campaigns using self-assessment sheets, information featuring Sharp's health mascot, the company's no-smoking campaign, events promoting exercise habits such as workplace walking and relay marathon competitions, a wellness project in which participants attempt to lose 3 kg of bodyweight, a dental health event, and specific health guidance for employees and their families. 700 employees and their families participate in a workplace relay marathon competition at Nagai Park in Osaka Furthermore, to effectively promote employees' health based on health checkup data and clinical data from medical institutions, Sharp has started a new data health plan from fiscal Sharp's Health Initiative: "Healthy Sharp 23" Sharp's Business Philosophy says that it will contribute to the culture, benefit, and welfare of people throughout the world. To this end, Sharp teamed up with the Sharp health insurance association and the Sharp labor union in fiscal 2014 to begin comprehensive support for the health of Sharp employees and their families. Sharp has named its initiative "Healthy Sharp 23." This program incorporates numerous activities aimed at achieving certain health targets by the end of March It is inspired by Healthy Japan 21 (second stage) *6, a health promotion campaign by Japan's Ministry of Health, Labor, and Welfare. The "Healthy Sharp 23" program will grow to include an increasing number of activities that promote the health of employees and their families. *6 Stipulates the basic direction and goals for the promotion of health based on the Health Promotion Act. (July 10, 2012 Ministry of Health, Labor, and Welfare Notification No. 430) "Healthy Sharp 23" Goals Items and Targeted Values by the End of March 2023 (1) Reduce the percentage of employees who have a BMI of 25 or higher to 20% or less (fiscal 2014: 26.0%). Reduce the percentage of obesity to one in five people, from the present one in four people, for the prevention of lifestyle-related diseases, etc. (2) Lower the smoking rate to 12% or less (fiscal 2014: 26.5%) of employees. For the prevention of cancer, cardiovascular disease, diabetes, etc. and also to reduce passive smoking, the smoking rate will be reduced to the same level as in Healthy Japan 21 (second stage). (3) Regular exercising for 35.6% or more (fiscal 2014: 23.3%) of employees. Regular exercise will be promoted for the prevention of lifestyle-related diseases and to prolong life expectancy. (4) Reduce the total amount of sick leave associated with mental health disorders and illnesses by 25% compared to fiscal Since mental illnesses are a major setback for both the company and employees, and as they often involve long recovery times, such disorders will be reduced by creating a workplace where employees can work enthusiastically. (In cases where employees take sick leave, the entire workplace will provide support by permitting ample time for recovery and by supporting a smooth return to work.) (5) Eliminating constant excessive work hours. Long and persistent overtime work will be prohibited for both employees and managers, to increase the number of employees who have a favorable work-life balance and who can work enthusiastically.

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