Stakeholders Communication

Policy and Basic Approach
Goals and Achievements
Communication with Stakeholders
Initiatives

Policy and Basic Approach The Gunze Group has upheld the founding principle of “pursuing mutual prosperity with all stakeholders surrounding the company” and has always valued communication with its stakeholders.
Through dialogue with six identified stakeholder groups, we will create social and economic value, contributing to the realization of a sustainable planet and society.

Goals and Achievements

FY2024 results

Category	FY2024 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: 178 companies, 230 participants	• Chairman and Representative Director, Representative Director and President • Director, General Manager of Finance & Accounting Department • Managing Corporate Officer, General and General Manager of Management & Strategy Department • Corporate Officers • Corporate Communication Department, Public & Investor Relations
For institutional investors and securities analysts	Total participants in 1-on-1 meetings: 142 companies, 215 participants (57 in-person, 158 online)	• Representative Director and President • Director, General Manager of Finance & Accounting Department • Managing Corporate Officer, General and General Manager of Management & Strategy Department • Corporate Officers • Corporate Communication Department, Public & Investor Relations
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
Direction of the Medium-term Management Plan	• Growth strategies in core businesses • Structural reform of low-ROIC businesses • Financial strategy (shareholder return policies)
Business Environment and Performance	• Sales, profit and performance by segment • Market environment and competitive landscape • New product development for sustainable growth
Capital policy	• Cost of capital and ROE targets • Share buybacks and shareholder return policies
ESG Information Related	• Corporate governance (Board composition, compensation systems) • Human resources strategy, encompassing talent development and diversity

Communication with Stakeholders

Identifying stakeholders and co-creating value

Stakeholder	Co-created value	Means of engagement	FY2024 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 satisfaction: 90 points (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.	・Apparel trade exhibitions ・Co-hosted seminars (medical) ・Daily sales activities ・Human rights due diligence	・In-house assessments (2 domestic factories, 15 subcontractor factories) ・Supplier assessments (4 key suppliers of Gunze Medical Limited)
Society	We whole-heartedly 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	・Kyoto Model Forest Movement: 4 activities ・Comprehensive partnership initiatives: 18 projects
Employees	We provide equal opportunities without dis- criminating 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: 62 points ・Childcare leave utilization rate Women: 87% Men: 78%
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.	・Dialogue with suppliers to assess Scope 3 emissions ・Resource circulation initiatives centered on the Circular Factory	・CO₂ emissions reduction: 37% ・Scope 3: 393,953 t-CO₂ ・Plastic film HCX sales: approx. 40 tons
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	・Number of IR participants: approx. 460

Initiatives

Dialogues with Shareholders and Investors

The Gunze Group regards constructive dialogue with shareholders and investors as a key management priority for the achievement of the sustainable increase of corporate value. In addition to quarterly financial results briefings and individual meetings with institutional investors and securities analysts, we engage with shareholders and investors at small meetings and conferences, providing clear explanations of our business environment, performance and management strategies.
In recent years, we have received an increasing number of questions and comments, not only on financial information but also on non-financial issues, including ESG topics. These range from human capital management and environmental initiatives to respect for human rights throughout the supply chain. We make every effort to explain our views and initiatives thoroughly.
Feedback obtained through this dialogue is regularly reported by the IR Department to senior management and is considered during the formulation and review of management strategies during discussions of the Board of Directors and in other forums. To thoroughly ensure that information is fairly and transparently disclosed, we continue to enhance our IR website, improve the quality of financial briefing materials, and expand the multilingual content we provide.
Going forward, we will remain committed to sincere, two-way dialogue, increasing the trust with the capital markets while working to increase our corporate value.

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

President Saguchi at the FY2024 financial results briefing
(hybrid format)