Social Data

Employees’ Occupational Health and Safety

Work-Related Incidents

• 1.“Employees” includes employees and part-time workers from Group companies
• 2.Frequency rate calculated per 1,000,000 hours
• 3.“Recordable work-related injuries” is the total of injuries that required hospital treatment and resulted in absence from work and injuries not resulting in absence from work
• 4.Estimated based on one person working 2,000 hours per year
• 5.Total working hours of workers other than employees (those working at regular contractors) based on survey numbers from May of each year. Calculated based on note 4 above
• 6.The number of minor incidents (visited the hospital but no treatment needed)

Work-Related Incidents (2022 results)

• Hierarchy of controls: An approach for lowering risk to acceptable levels through prioritization as follows: Elimination of source of risk → Substitution of source of risk → Engineering controls → Administrative controls → Personal protective equipment
  Source: The US National Institute for Occupational Safety and Health (NIOSH)

Work-Related Ill Health

• “Employees” includes employees and part-time workers from Group companies

Work-Related Ill Health (FY2022 results)

• Hierarchy of controls: An approach for lowering risk to acceptable levels through prioritization as follows: Elimination of source of risk → Substitution of source of risk → Engineering controls → Administrative controls → Personal protective equipment
  Source: The US National Institute for Occupational Safety and Health (NIOSH)

Occupational Health and Safety Management System

SMM Group

Regular contractors

• 1.Includes temporary employees covered by SMM Group occupational health and safety administration
• 2.Japan:
  We have built an occupational health and safety management framework as stipulated by the Japanese Industrial Safety and Health Act, formulated policies, targets, and plans, and implemented a one-year PDCA cycle. Activities are carried out for each level of the organization and cover 100% of employees
  Overseas:
  We have built the system in accordance with the occupational health and safety laws and regulations of each country
• 3.Japan:
  Internal audits are implemented at each business site in the form of inspections by the business division with jurisdiction, the Safety & Environment Control Department, the Besshi-Niihama District Division Safety & Environment Control Center (Besshi District), or other organizations. The inspections check each business site’s policy, targets, activity plan, and implementation status and check to see if a PDCA cycle is being carried out or not
  Overseas:
  The business division with jurisdiction carries out audits around twice a year in the form of inspections. Dongguan Sumiko Electronic Paste Co., Ltd. carries out an internal audit each year
• 4.Workers at business sites covered by safety statistics
• 5.Results for 2022 are as follows:
  Japan:
  ISO 45001: Nippon Ketjen Co., Ltd.; Hishikari Mine; Hishikari Office, Mining Dept., Sumiko Resources Exploration & Development Co., Ltd.; Niihama Nickel Refinery; Toyo Smelter & Refinery
  Japan Industrial Safety and Health Association (JISHA) OSHMS standards: Numazu Office and Tsukuba Office of N.E. Chemcat Corporation; Shinko Co., Ltd.; Ome District Division
  Overseas:
  Safety and production standardization (State Administration of Work Safety): Dongguan Sumiko Electronic Paste Co., Ltd.
  Safety and production standardization (State Administration of Work Safety): Shanghai Sumiko Electronic Paste Co., Ltd.
  Third party audit implemented by the Ministry of Labor: Taiwan Sumiko Materials Co., Ltd.
• 6.Results for 2022 are as follows:
  Japan:
  JISHA OSHMS standards: Certification acquired by one contractor of Hyuga Smelting Co., Ltd.
  While there are cases where some small contractors do not implement checks on the level of internal audits, contracting organizations offer guidance on occupational health and safety and carry out patrols, inspections, and other measures, and the majority do implement checks on the level of internal audits
  Overseas:
  At Coral Bay Nickel Corporation, internal audits take the form of patrols and contractor safety meetings led by the contracting organization. At Taganito HPAL, contractors implement internal audits or participate in patrols led by Taganito HPAL

Identification of Hazard Sources, Risk Assessment, and Accident Investigation (2022)

SMM Group

Regular contractors

Services, Education and Training Related to Occupational Health and Safety (2022)

To ensure that employees have access to information on health and safety and disaster countermeasure services at all times, we distribute operational guidelines and procedure manuals, hang up bulletin boards, and post on the Company’s intranet.

Diverse Human Resources / Development and Participation of Human Resources

Employee Data

Average Years of Service, Age, and Annual Compensation

Average annual compensation includes compensation other than base salary, other allowances, and bonuses

Number of Officers and Employees (by country and region)

• 1.Data are as of the end of the fiscal year in each country (including employees on leave), and dispatched employees are recorded in the number of officers and employees of the company to which they are dispatched
• 2.The scope of officers includes directors, Audit & Supervisory Board members, and executive officers (excluding outside directors and Audit & Supervisory Board members) of SMM, and directors and Audit & Supervisory Board members of consolidated subsidiaries in Japan and overseas

• Some revisions have been made to previous years’ figures based on a close examination of historical data

Number of Officers and Employees (by age group and employee category)

• 1.Data are as of the end of the fiscal year in each country (including employees on leave), and dispatched employees are recorded in the number of officers and employees of the company to which they are dispatched
• 2.The scope of officers includes directors, Audit & Supervisory Board members, and executive officers (excluding outside directors and Audit & Supervisory Board members) of SMM, and directors and Audit & Supervisory Board members of consolidated subsidiaries in Japan and overseas

• Some revisions have been made to previous years’ figures based on a close examination of historical data

New Hires and Departures (by hiring type and reason for departure)¹

• 1.Data are as of the end of each fiscal year (excluding directors, limited-term employees, and temporary employees)
• 2.Other: departures due to having reached mandatory retirement age, death, expiration of leave of absence, etc.

New Hires and Departures (by region)¹

• 1.Data are based on the number of employees as of the end of the fiscal year in each country (excluding directors, limited-term employees, and temporary employees)
• 2.Percentage of new employees: number of new employees ÷ total employees x 100; turnover: number of departures ÷ total employees x 100
• 3.Asia & Oceania (excluding the Philippines) includes China, Taiwan, South Korea, Thailand, Vietnam, and Australia (FY2022)
• 4.North America & Europe includes Canada and the U.S. (FY2022)
• 5.South America includes Peru, Chile, and Brazil (FY2022)

Human Resources Development

Time Spent on and Investment in Employee Education

• Figures are rounded to the nearest whole number, so totals may not match
• 1.Data are as of the end of the fiscal year in each country. Education hours cover all training except for routine on-the-job training (so-called OJT) conducted in the workplace by instructors and other personnel, emergency drills, and small-group activities
• 2.In addition to the total time spent on education, employees spent the following number of hours on e-learning courses: 5,763 hours for SMM, and 2,012 hours for consolidated subsidiaries in Japan and overseas
• 3.Average annual hours of education per employee: Total hours of education for all employees ÷ number of officers and employees
• 4.Amount of investment in education does not include labor costs for on-the-job training and education and training hours (rounded up to the nearest ¥1,000)

• Some revisions have been made to previous years’ figures based on a close examination of historical data

Utilization of Human Resources

Working Style Reform

• 1.Average annual working hours = scheduled working hours (excluding leave, paid leave, etc.) + overtime hours
• 2.The working style reform started in FY2017. In FY2016, there were 1,987.4 hours (managers: 2,076.1 hours, regular employees: 1,960.7 hours) In FY2017, there were 1,967.3 hours (managers: 2,043.9 hours, regular employees: 1,943.9 hours)
• 3.Percentage of paid leave taken by employees for the full year (excluding limited-term employees who are specially hired employees)
• 4.Average of 4 years (excluding limited-term employees who are specially hired employees) FY2016: 2,274 employees; FY2017: 2,317 employees
• 5.Data cover the period from January to December of each year

Creating Workplaces Where Diverse Human Resources Play Vibrant and Active Roles

• The percentage of parental leave (female) in FY2022 includes those who gave birth in FY2021 and took parental leave in FY2022, and thus exceeds 100%
• 1.Until FY2021 the percentage is only for those who took parental leave, but from FY2022 onward, the percentage (male) is for both those who have taken parental leave and those who have taken leave for child-rearing
• 2.Childbirth and child-rearing support leave : male employees can take leave to care for and support their spouse after the birth of a child. Seven consecutive days can be taken from the day of hospital admission, delivery, or discharge (up to nine days)
• 3.Male employees: number of employees who took parental leave (starting) in FY2022 Female employees: number of employees who took parental leave (starting) in FY2022
• 4.Male employees: number of employees who submitted a notification of birth to the Company for birth by their spouse in FY2022 Female employees: number of employees who gave birth in FY2022
• 5.Return-to-work rate: number of employees who returned to work in FY2022 ÷ number of employees who intended to return to work in FY2022 x 100
• 6.Retention rate: number of employees who returned to work in FY2021 and were still working at the Company 12 months later ÷ number of employees who returned to work in FY2021 x 100

• 1.Calculated as the average value of responses, with “Very much so” as 5, “Somewhat so” as 4, “Cannot say” as 3, “Not so much” as 2, and “Not at all” as 1
• 2.Calculated from total responses of “Very much so” and “Somewhat so” among all response options (“Very much so,” “Somewhat so,” “Cannot say,” “Not so much,” and “Not at all”)

Diversity & Inclusion

Gender Balance (women’s active engagement)

• 1.The number and percentage of female employees are calculated with dispatched employees counted under the company from which they were dispatched

• 2.Non-limited-term employees (including employees with short working hours and dispatched employees in Japan, but not including employees dispatched overseas)
• 3.Limited-term employees (including employees dispatched in Japan, but not including employees dispatched overseas)
• 4.Includes base salary, overtime pay, allowances for housing, family, commuting, etc., and excludes payments to employees who resigned
• 5.The main reasons for the compensation difference are that the average length of continuous service for women is 12.8 years (about 6 years shorter than the 18.7 years for men) and the percentage of women in management positions is 2.9%
• 6.The main reason for the compensation difference is that the average years of continuous service for women is 11 years, which is 22.6 years less than that of men (33.6 years)

Standard Entry-level Salary to Regional Minimum Wage

• In the comparison of standard entry-level salary to regional minimum wage, Ehime Prefecture is used for the regional minimum wage for high school and technical college graduates, and Tokyo Metropolitan minimum wage is used for university graduates and above Monthly wages and minimum wage data are as of April 1 of each fiscal year

Promoting Employment of People with Disabilities

• 1.Data as of June 1 of each fiscal year
• 2.The number of employees with disabilities is counted by the method of counting in the statutory employment rate calculation method

Maintaining and Improving Employees’ Health

Addressing Mental Health Care

Percentage of employees taking leave: Total number of days of leave taken ÷ number of scheduled working days x number of employees at end of fiscal year x 100

Illness Prevention and Health Promotion Initiatives

• 1.Employees insured by the Sumitomo Metal Mining Health Insurance Association
• 2.Employees insured by the Sumitomo Metal Mining Health Insurance Association who are 18 years old or older
• 3.Employees of Sumitomo Metal Mining Co., Ltd., age 40 or older (results of specified health checkup interview)
• 4.All employees

Labor-Management Relations (freedom of association and collective bargaining)

• 1.Labor union members are employees covered by collective agreements (as of March 31 of each fiscal year)
• 2.Consolidated subsidiaries of the SMM Group

Co-Existence and Mutual Prosperity with Local Communities

Investment in Infrastructure and Support Services (cost of social contribution activities)

Percentage of procurement² from local suppliers¹ and percentage of employees hired locally³

• 1.Targets the three core segments (Mineral Resources, Smelting & Refining, and Materials), business sites that are not only necessary for the business, but are also relatively large-scale (one domestic, one overseas site for each segment)
• 2.Local procurement: Amount paid to each area and percentage of payments (percentage of payments: amount of payments to payment area ÷ amount of total procurement payments x 100)
• 3.Percentage of locally-hired employees: number of employees from each of the above business sites at the end of each fiscal year ÷ total number of employees × 100
• 4.Scope of local procurement: Sumitomo Metal Mining Co., Ltd.’s Besshi-Niihama District Division, Toyo Smelter & Refinery, Niihama Nickel Refinery, Isoura Plant and Niihama Research Laboratories
• 5.Scope of percentage of locally-hired employees: Sumitomo Metal Mining Co., Ltd.’s Besshi-Niihama District Division, Toyo Smelter & Refinery, Niihama Nickel Refinery, Isoura Plant, Niihama Research Laboratories and Battery Research Laboratories

Percentage of Locally-Hired Senior Managers^{1, 2}

• 1.The number of senior managers include general managers or above of overseas subsidiaries (as of the end of each fiscal year). Figures in parentheses indicate the number of female managers
• 2.Percentage of senior managers: number of senior managers ÷ locally-hired employees x 100 (Number of locally-hired employees is the number of employees directly employed by overseas subsidiaries, excluding dispatched employees and transferees)

Human Rights in the Supply Chain

• Number of responses out of the Responsible Mineral Sourcing questionnaire forms from customers, mainly smelter and refinery specific survey forms developed by RMI

Economic Performance

• No governments have an equity stake in SMM
  Other than the above, there is retained value of ¥90.7 billion. Rent for use of land is minimal and therefore included in “Payments to suppliers.”

• Society: In the Philippines (CBNC, THPAL), the ¥1.6 billion expended through the Social Development and Management Program (SDMP) and other contributions in the same country is included

• With regard to equity-method affiliates, the above amounts include the Company’s proportional burden of income tax