HR POLICIES-KAWASAKI

Securing and Retaining Human

Resources
Basic Thoughts on Personnel
The Kawasaki Group is active worldwide through a global workforce of about
35,000 people. To achieve higher sustainable corporate value through the
implementation of our mission statement, it is very important that each and
every employee, regardless of nationality, gender or age, religion, or any
disabilities, understand and communicate the underlying ideals of our Group
Mission and Kawasaki Value and be diligent and industrious in daily tasks, based
on the Group Code of Conduct. Of note, for us to reach new heights in
technology, which is a component of Kawasaki Value, it is absolutely essential
from a long-term perspective to ensure that human resources receive the right
training. Toward this end, we have established a workplace environment in
which employees pursue their duties with a positive outlook in safe and secure
surroundings, and we direct concerted energy into training that fuels realization
of business strategies while contributing to the future of the planet. The
foundation for this approach is Group Management Principle No. 3, which reads
“The Kawasaki Group’s corporate culture is built on integrity, vitality,
organizational strength, and mutual respect for people throughout the entire
Group.”
Composition of Workforce (As of March 31, 2018)
Total Men Women
Non-consolidated 16,423 15,303 1,120
(Managerial staff) 3,473 3,345 28
(General Employees) 12,950 11,858 1,092
Domestic group 26,747 ― ―
Overseas group 9,058 ― ―
Group-wide 35,805 ― ―
Note: The number of employees includes temporary employees (non-
consolidated).
Personnel Data (as of March 31, 2018) (non-consolidated)
Average Average years of Average annual salary
age service (yen)
 Non- Men 38.3 13.5 7,189,521
consolidated Women 39.9 13.5 5,153,445
Total 38.4 13.5 7,067,086

Securing Human Resources

When recruiting human resources, rather than simply filling posts of retiree, we
seek to recruit human resources with the necessary skills in the required
numbers based on a medium- to long-term view. Recently, business expansion
has heightened the need for more employees, and we actively recruit new
graduates as well as individuals who have already acquired career experience.
Additionally, in the course of our attempt to employ new overseas college
graduates and foreign national students starting in fiscal year ended March 31,
2013 with a view to overseas business extension and respect for diversity, three
foreign national students joined us in fiscal year ending March 31, 2019.
New Graduate Recruitment (non-consolidated)
(Years ended March 31)
2015 2016 2017 2018 2019
Men Women Men Women Men Women Men Women Men Women
Administrative
and technical 272 29 279 20 305 28 287 38 291 41
positions
Production
194 5 221 6 241 3 208 5 201 5
positions
Total 466 34 500 26 546 31 495 43 492 46
Number of Mid-Career Recruits (non-consolidated)
(Years ended March 31)
2014 2015 2016 2017 2018
Administrative
and technical 167 204 284 177 138
positions
Production
58 195 163 20 19
positions
Total 225 399 447 197 157
Number of People Resigning and Turnover Rate
(age as of April 1, 2017) (non-consolidated )
(Year ended March 31, 2018)
 29 and 30–39 40–49 50 and Total
younger older
Number of people resigning Men 65 52 18 6 141
Women 12 5 3 0 20
Total 77 57 21 6 161
Turnover rate Men 1.6% 1.2% 0.5% 0.2% 0.9%
Women 5.0% 1.7% 0.8% 0% 1.9%
Total 1.8% 1.2% 0.5% 0.2% 1.0%
Note: Excludes people who reached mandatory retirement age and those
promoted to executive positions

Education and Training

Kawasaki ideal human resources fall into six categories, based on the
Company’s mission statement. The categories are (1) actively involved around
the world; (2) solving issues for customers and the community; (3) leading
reforms and innovation; (4) taking technology to new heights; (5)
demonstrating comprehensive capabilities; and (6) always maintaining a
profitability perspective. Aiming to cultivate human resources with these
qualities, we promote comprehensive training and skill development for all
employees regardless of rank.
Reinforce the management and business execution capabilities of employees
(administrative and technical training)
During their first three years of employment, employees in administrative and
technical positions receive a combination of structured on-the-job training,
facilitated by a mentoring system, and a range of training content to help young
professionals shoulder new responsibilities as quickly as possible.
At the same time, we conduct the succession planning such as Kawasaki
management seminars and Kawasaki executive coaching programs, also
training for managers, including section managers, general managers and board
members. In addition, we regularly conduct multifaceted observation surveys
that provide feedback (opinions and evaluations) from supervisors, subordinates
and colleagues to managers on their strong points and areas in need of
improvement. Such initiatives serve to strengthen middle management and
develop the skills of candidates for management positions.
In the execution of routine duties, we utilize communication opportunities,
especially the operational goal sharing program GMK—which takes its name
from the Japanese gyomu mokuhyo kyoyuka (sharing business targets)—and
semiannual one-on-one meetings between supervisors and subordinates, to
foster skill development through the achievement of operating goals.
Record of Main Grade-Specific Training Organized by the Head Office (non-
consolidated)
(Year ended March 31, 2018)
New Training for Training for Kawasaki Kawasaki
employee section division executive management
training managers managers coaching seminars
program
Number of
325 91 44 9 51
participants
Total number
14,300 7,280 2,464 1,152 204
of hours
Strengthening of on-site capabilities (Training for production specialists)
Kawasaki's production specialists are working on transferring and improving
skills required at the production sites under the Skills and Qualification Early
Acquisition Incentive Program for younger employees and the Grand Master
System in which skillful production specialists with a high level of special
expertise are recognized as Grand Master systematically hand down their skills
to the younger generation. In fiscal year ended March 31, 2018, a total of 25
Grand Masters, including eight newly recognized, are actively working.
In addition, we also participate actively in outside skill competitions such as the
Technical Skill Grand Prix. In the Technical Skill Grand Prix in February 2017,
two of our employees won the Fighting Spirit Prize in the lathe job, and in the
younger workers category of the Hyogo Monozukuri (production) Skill
Competition in November 2016 one won the championship and another the
third place in the lathe job, and yet another employee won the Fighting Spirit
Prize in the welding job.
For supervisors at the production sites, office chief training and team leader
training are provided to reinforce leadership, and for young employees KPS
basic training is implemented to learn our production system.