Stakeholders Communication | Social | Sustainability | GUNZE LIMITED

Policy and Basic Approach
Goals and Achievements
Communication with Stakeholders
Initiatives

Policy and Basic Approach The Gunze Group has embraced its founding spirit of “striving for harmonious coexistence with all stakeholders surrounding the Company.” True to this philosophy, we place great importance on open communication with our stakeholders. By engaging in dialogue with six identified stakeholder groups, we aim to create social and economic value and contribute to the realization of a sustainable society and global environment.

Goals and Achievements

FY2025 results

Category	FY2025 results	Company representatives
For institutional investors and securities analysts	Financial results briefings: Four briefings (hybrid in May and November; online in August and February) Total attendance: 170 companies, 218 participants	・ Representative Director and President ・ Representative Director, Senior Managing Corporate Officer, General Manager of Management & Strategy Department ・ Director, General Manager of Finance & Accounting Department ・ Corporate Officers ・ Corporate Communication Department, Public & Investor Relations
For institutional investors and securities analysts	Total participants in 1-on-1 meetings: 122 companies, 191 participants (41 in-person, 150 online)
For individual investors	Online briefings held in collaboration with securities companies Nomura Securities (November), Rakuten Securities (February)	・ Representative Director and President
For individual investors	Online distribution of financial briefing transcripts and Q&A: Twice (May and November)	・ Corporate Communication Department, Public & Investor Relations

Key dialogue themes

Theme	Details
Progress on the Medium-term Management Plan	・ Growth strategies for core businesses and results of implementation ・ Structural reforms in the apparel business ・ Progress toward operating profit targets in each business
Business environment and performance	・ Sales, profit and performance by segment ・ Market environment and competitive landscape ・ Measures to address geopolitical risks
Capital policy	・ Exchange of views on the cost of capital and target ROE ・ Approach to shareholder returns under the Medium-term Management Plan ・ Reduction of cross-shareholdings
ESG-related	・ Enhancement of the corporate governance framework ・ Human capital strategy, including personnel system reforms ・ Initiatives to reduce environmental impact

Communication with Stakeholders

Identifying stakeholders and co-creating value

Stakeholder	Co-created value	Means of engagement	FY2025 results
Customers	We are committed to providing excellent products and services and practicing the motto “Happy to Sell, Happy to Buy.” With quality as our first priority, we pursue safety, security, comfort, and satisfaction, and develop products and services that are friendly to the environment and people.	・Customer service office ・Medical department information session ・Customer service activities for apparel products (through retail stores, directly operated stores, and online channels)	・Customer satisfaction: 4.6 points (Out of 5) (Based on customer satisfaction survey)
Business partners	Beyond just complying with relevant laws and regulations, and the spirit with which they are written, we conduct transactions that are fair and free. We call for a prohibition of discrimination in employment, forced labor, and child labor.	・Sustainable Procurement Guidelines ・Co-hosted seminars (medical) ・Daily sales activities ・Human rights due diligence	・In-house assessments (1 domestic factory) ・Supplier assessments (8 suppliers in the plastic films business)
Society	We wholeheartedly participate in social and community activities, build friendly relationships with society, and pursue sustainability with communities.	・Initiatives under comprehensive partnership agreements with Osaka Prefecture, Osaka City, and Kyoto Prefecture ・Participation in the Kyoto Model Forest Movement in Ayabe ・Donations via the Gunze Love Earth Club ・Disaster preparedness agreement with Kurashiki City (Gunze Sports)	・Kyoto Model Forest Movement: 4 activities ・Comprehensive partnership initiatives: 18 projects
Employees	We provide equal opportunities without discriminating in employment and treatment. We respect the human rights of all people involved in our business activities and do not use forced labor or child labor. We promote skills development that enables diversity among employees who will be the right person in the right position, and nurture human resources who can contribute to society.	・One-on-one meetings ・Training/Seminars ・Mentoring ・Childcare leave support interviews ・General consultation hotline	・Engagement score: 61 points ・Childcare leave utilization rate Women: 125% Men: 86%
Environment	We will contribute to the realization of a sustainable earth and society by actively working to protect the global environment, including biodiversity, and reduce greenhouse gas emissions in all of our business activities, as well as by providing environmentally friendly products and services.	・Disclosure of sustainability-related information (climate change, water resources, biodiversity) ・Dialogue with suppliers to reduce Scope 3 emissions ・Resource circulation initiatives centered on the Circular Factory^TM	・Third-party verification of CO₂ emissions data ・Scope 3: 382,151 t-CO₂ ・Recycled hybrid shrink film (environmentally friendly product) sales: approx. 295 tons ・Zero industrial waste at apparel logistics bases (Nishinomiya Logistics and Okayama Logistics)
Shareholders and investors	We work to enhance corporate credibility through the promotion of sustainability management. We proactively and fairly disclose corporate information and live up to the trust that is placed in us.	・General meetings of shareholders ・Financial results briefings ・Small meetings ・Individual IR meetings ・Plant tours for analysts and institutional investors ・Corporate briefings for individual investors (Nomura Securities, Rakuten Securities)	・Number of IR participants: 423 ・Online briefings for individual investors: over 4,000 viewers

Initiatives

Dialogues with Shareholders and Investors

The Gunze Group considers enhancing corporate value over the medium to long term through constructive dialogue with shareholders and investors to be an important management priority. Led by the Investor Relations Section and working in coordination with relevant departments, we hold quarterly financial results briefings, individual meetings with institutional investors and securities analysts, and small meetings. We also maintain ongoing dialogue with those responsible for exercising voting rights at beneficial shareholders.
Beginning in FY2025, we also launched briefings for individual investors through IR events organized by securities companies and other channels, working to expand opportunities for engagement with individual investors and deepen their understanding of our businesses.
Our dialogue covers a broad range of topics, including business performance, business strategies, capital policy, and progress on structural reforms, as well as non-financial matters such as human capital, environmental initiatives, and corporate governance. We organize and analyze the opinions and issues identified through these discussions and regularly share them with management and the Board of Directors. This feedback is used to further refine management strategies, improve capital efficiency, and strengthen corporate governance. We are also enhancing our IR website, improving financial results presentation materials, and providing information in multiple languages to deliver timely and easy-to-understand information to shareholders and investors. Going forward, we will continue to strengthen relationships of trust with the capital markets through sincere, two-way communication.

1-on-1 meeting with a sell-side analyst

Online briefing for individual investors