1. Suzuki’s Philosophy on Human Capital

Develop People as the Driving Force Behind Growth Toward 2030, Based on Our Mission Statement and Philosophy of Conduct

Following the General Meeting of Shareholders held on June 25, 2021, the Company transitioned from a management structure led by Former Chairman Mr. Osamu Suzuki to a collective management structure centered around President Mr. Toshihiro Suzuki. Under this new structure, we have “further strengthened while preserving” our management approach, while simultaneously “updating it to keep pace with the evolution of the times”.

What we have “further strengthened while preserving” is Suzuki’s Operating System (OS) which comprises our Mission Statement and Philosophy of Conduct: “3-Gen and 2-Gen”, “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty)” and “YARAMAIKA (Entrepreneurial Spirit)”. On the other hand, what we have “updated to keep pace with the evolution of the times” is the enhancement of Suzuki’s management quality and competitiveness, benchmarked against the 83 principles of the Corporate Governance Code.

Under the new management structure, we implemented various activities to build an organization capable of continuing to evolve in accordance with Suzuki’s OS and management principles, thereby enhancing our management quality and competitiveness. Since then, we have continuously striven to enhance our management quality and competitiveness, and in April 2024, we established a new human resources system to reinforce our human capital.

In recent years, the business environment has been changing rapidly, and the difficulty of judgment and operations required on-site has intensified. As a result, it is becoming difficult to sustain growth through current practices. We will pursue growth by not only expanding our existing businesses or updating our current practices, but also by undertaking new initiatives, embracing challenges for discontinuous growth, and driving transformative growth.

As stated in the basic policy for management targets in our Mid-Term Management Plan, “By Your Side”, we believe that our people are the driving force toward 2030. The new human resources system established in April 2024 represents our commitment to genuinely investing in each employee. It reflects our desire to co-create a company with our employees where every individual can truly shine.

2. Human Capital driving the execution of Suzuki’s Management Strategy

Leveraging a Culture of Learning to Turn Individual Growth into Company-wide Growth and Greater Earning Power

In our Mid-Term Management Plan, “By Your Side”, the Company has established “an infrastructure Mobility closely connected with people’s lives” as our vision for the mid-to-long-term. To realize this vision, we have outlined our management targets alongside specific strategies and initiatives to achieve them.

Such business strategies cannot be achieved simply by defining them; these can be achieved only through sustainable execution across the organization by individuals and organizations that understand and act upon them. Furthermore, we believe that communicating the details and intentions of our business strategy throughout the entire organization is a crucial initiative for ensuring that the strategy is effectively executed across the organization, as it enables employees to recognize their respective roles and fosters proactive learning.

In addition, we place great importance on our executives and general managers engaging in continuous self-improvement to demonstrate ongoing enhancement in the human competitiveness of our management team, which in turn inspires proactive learning and growth among our employees. Deepening the knowledge of executives on a continuous basis not only elevates the quality of management decisions and discussions, but also helps embed a culture of learning throughout the entire organization. Through this chain of learning, we will connect Individual Growth to the overall growth of the Company and strengthen our earning power.

3. The Positioning of Human Capital

Strengthen Human Capital Through Three Priority Areas as the Foundation Supporting Our Business Strategy

4. Initiatives for “Aligning the Core Principles for Judgment and Action (Suzuki OS)”

i) Embedding and Sharing Our Principles for Decision-Making

Embedding the Mission Statement and Philosophy of Conduct and Putting Them into Daily Practice

To ensure continued customer satisfaction and earn customers’ trust in Suzuki, we work to ensure that every employee reaffirms our founding spirit and the spirit of manufacturing, and consistently puts our Mission Statement and Philosophy of Conduct—the “Suzuki OS”—into practice in their work. Through training for all employees, from new hires to those in leadership positions, together with day-to-day work in each workplace, we seek to firmly embed these principles throughout the company.

We also provide training for senior management at our overseas subsidiaries to deepen their understanding of our Mission Statement and Philosophy of Conduct, enabling them to make management decisions based on the “Suzuki OS” around the world.

President’s Workplace Dialogue

Since 2021, we have held workplace dialogue sessions with the President at individual workplaces across all 31 Verticals. These sessions aim to facilitate dialogue between Managers and their Direct Reports, among colleagues, and across divisions, while fostering an environment where employees feel comfortable reporting problems, sharing information, and seeking advice.

During these sessions, the President personally shares his thoughts with employees, who in turn discuss their day-to-day concerns and express their views. For employees in the early to middle stages of their careers in particular, these sessions provide an opportunity to convey their thoughts directly to the President in their own words.

We also publish the content of these sessions on our internal website and share it with all employees. This helps encourage more active workplace dialogue, boost employee motivation, and align all employees toward a shared direction.

ii) Elevating the Quality of Judgment and Action

Training for Officers and General Managers

The greatest value of this training program lies in laying the foundation for officers and General Managers to enhance their management literacy, develop and discuss their own hypotheses, and lead transformation in an era of uncertainty. Moving beyond simply following precedent and gaining a perspective that identifies the essence of change are essential to leading the automotive industry through its transformation and achieving growth by taking on challenges that go beyond incremental change.

The program covers foundational topics such as Suzuki’s history and legal affairs, as well as key contemporary issues including AI, geopolitics, and corporate finance. It continues to evolve through a dialogue-based cycle of improvement. As part of the program, we also introduced a recommended reading initiative in April 2024. We share the selected books, the reasons for their selection, and each participant’s reading status with all employees on our internal website. By making senior management’s commitment to continuous learning visible, we aim to embed a culture of self-directed growth throughout the company and strengthen our capacity for co-creation as “Team Suzuki.”

We have also launched an onboarding program for mid-career hires. Officers who embody our Mission Statement and Philosophy of Conduct serve as instructors, articulating the “Suzuki OS” in their own words and directly communicating the practical behaviors that reflect Suzuki’s distinctive character. Through this program, we help lay the foundation for mid-career hires to contribute as members of “Team Suzuki” early in their employment.

We will continue to further develop this training program as a core program that drives the sustainable enhancement of corporate value and encourages employees to take on challenges that lead to discontinuous growth.

Fostering Diverse Values and Delivering Training Tailored to Workplace Realities

Our training brings together participants from different divisions to consider issues and engage in discussions from multiple perspectives, helping to foster new ideas and diverse values.

In addition to helping employees gain diverse perspectives, we provide training by organizational level, grounded in an understanding of our Mission Statement and Philosophy of Conduct, to enable each employee to make sound judgments and take appropriate action.

This training helps employees reaffirm the roles and perspectives expected at each level. It also emphasizes dialogue and exercises based on workplace challenges to help employees apply what they learn in their daily work.

We are also enhancing training by organizational level, which previously had some restrictions based on position or years of service, so that employees can access learning suited to their respective roles. To this end, we are offering greater flexibility in when employees take training, reviewing training content, and making ongoing improvements based on issues and feedback gathered from each workplace.

5. Initiatives for “Operating the Mechanism for Growth”

i) Human Capital Development

Employee Development Through Everyday Work for All Employees

As changes in the business environment make work more complex and place greater demands on employees’ judgment, we believe it is important to continuously foster Individual Growth. We therefore emphasize employee development through everyday work and implement systems that enable each employee to learn and grow independently.

Specifically, we promote the systematic acquisition of specialized knowledge and skills through on-the-job training (OJT) and off-the-job training (OFF-JT), including internal training and external seminars. Our engineering and manufacturing functions use skill maps to make the capabilities required for each job visible and support structured employee development. We also support self-directed learning by providing an on-demand learning environment for all employees.

In the digital field, with Global IT taking the lead, we provide digital transformation (DX) management training for senior executives and managers. In addition, we are advancing initiatives for all employees, including the development and support of citizen developers, training in data analysis and utilization, and the development of infrastructure to support the use of generative AI. Approximately 14,500 employees currently use generative AI, and citizen developers have developed more than 1,000 applications, demonstrating steady progress in strengthening digital capabilities across the company.

Through these initiatives, we strengthen the foundational capabilities needed to meet increasingly sophisticated job demands and foster a cycle of self-directed growth, helping to enhance the entire organization’s ability to execute and deliver results.

Growth Opportunities Through Cross-Boundary Experiences for Selected Employees

Amid a rapidly changing business environment, we provide employees with opportunities to grow in settings beyond their usual organizational boundaries that challenge their existing experiences and values.

Specifically, through secondments to startups such as SkyDrive, we provide opportunities to tackle practical problems in a fast-paced business environment. In India, we have established a base within a local university for initiatives aimed at addressing issues rooted in Indian society. Through visits to rural communities and startups, participants also gain an in-depth understanding of realities on the ground in India, with the aim of growing together with India beyond the scope of our mobility business. In addition, our Silicon Valley training enables participants to learn from the practices of local startups that embody our Mission Statement, “focus on the customer,” deepening their understanding of how to create value by taking customer needs as the starting point.

Through these initiatives, we broaden employees’ perspectives and ways of thinking and foster a willingness to take the initiative in tackling challenges, helping to strengthen the entire organization’s capacity for transformation.

Developing Talent to Foster Growth Across the Region

Suzuki and other local companies have invested in YARAKASHIMAIKA Co., Ltd., established in Hamamatsu in April 2025, and are promoting a talent development project centered on “Individual Growth.”

The project aims to foster substantial personal growth by encouraging employees to set aside their corporate titles and take on challenges outside their own organizations but within the local community, with a spirit of contributing to others. Through these experiences in unfamiliar environments, participants discover new talents and strengths and develop them into additional areas of expertise, building on the expertise they have cultivated through their primary work. These new strengths, in turn, further enhance their original expertise, creating synergies that help them grow.

Through this project, we aim to build an ecosystem in which people across the region share their talents and grow together, helping to make Hamamatsu “a city that continues to grow” and attracts many talented people.

ii) Human resource system reforms

Job System and Ability Qualification

We comprehensively overhauled our HR system in April 2024. We reviewed the Ability Qualifications for each job category and organizational level and introduced the Ability Qualification System, which clearly defines the roles, abilities, and behavioral requirements needed to perform job duties.We have clarified the knowledge, skills, know-how, and experience required for duties within each division, while also defining the job responsibilities for each job category. Through two-way dialogue, Managers and their Direct Reports develop a shared understanding of these requirements and responsibilities and carry out their duties on that basis. Through these efforts, we aim to help employees develop their job-related abilities effectively.

Evaluation

We now conduct Performance Evaluation and Ability Evaluation separately, whereas they were previously conducted together. Short-term performance is reflected in bonuses, while job-related abilities are reflected in pay increases and promotions. This change enables us to accurately evaluate the abilities required for each job category and organizational level and helps foster an environment that encourages further “Challenge and Action.”

In addition to the existing Goal Challenge System, under which goals are set every six months and Performance Evaluation is based on the degree of goal achievement, we have introduced the Professional Development System. Under this system, we evaluate how employees have applied and developed their abilities over a one-year period, based on the evaluation items (ability criteria) defined for each Ability Qualification. Through two-way communication between Managers and their Direct Reports, we maintain an ongoing employee development cycle that promotes Individual Growth.

Wages

We have revised our wage structure and Wage Grades to encourage “Challenge and Action” in line with each Ability Qualification and ensure that wages appropriately reflect how employees apply and develop their abilities. We provide the training required for each function and base pay increases on the roles and abilities expected of employees, rather than on years of service. Through these measures, we promote further Individual Growth.

Re-employment system

We have revised our re-employment system so that employees who reach the age of 60 and wish to continue working can embrace “Challenge and Action” regardless of age. Under the revised system, they can perform duties comparable to those of regular employees while maintaining their salary at the level they received at age 60.

By matching employees with suitable assignments across the company and providing retraining, we have enabled assignments that best suit each individual’s job-related capabilities and created an environment where employees can work with energy and enthusiasm.

iii) Assigning the right positions for the right people

Talent Management

We are engaged in talent management to maximize the strength of the entire organization by matching people to the roles needed to implement our management strategy. We are making information on each employee’s values, experience, expertise, capabilities, and career aspirations readily accessible. We use this information not only to consider assignments and transfers within each department, but also to support employee development with a view to future needs.

Specifically, we have established a talent pool of employees at executive and managerial levels. We flexibly assign people from this pool to positions responsible for organizational management, taking a company-wide approach to optimize personnel allocation. In addition, the President and other senior executives discuss succession candidates at management meetings based on a list of potential successors. Through these discussions, we develop succession plans for the next generation of leaders, including officers, Executive General Managers, and Division Managers.

Through these initiatives, we help each employee realize their full potential and develop people who will lead the company in the future. By assigning the right positions for the right people, we strengthen the organization’s ability to execute and respond flexibly to changes in the business environment.

Departmental HR

To address workplace concerns accurately and promptly from a position closer to employees, we established departmental HR units operating independently of the Human Capital Development Division in the Automobile Engineering and Manufacturing divisions in 2023 and in the Japan Sales Division in 2025. These units promote improvements to the workplace environment and employee development.

These HR units listen to employees within their respective divisions and provide attentive support to help resolve individual concerns and matters raised in consultations. For issues that are difficult to address within a division, they collaborate with the Human Capital Development. Through these efforts, they help improve employee retention.

iv) Workforce Mobility

Mid-Career Recruitment

Amid increasing workforce mobility and worsening labor shortages, we strive to build a company and workplace environment where people see working at Suzuki as both attractive and an opportunity for personal growth.

Against this backdrop, we pursue mid-career recruitment through a variety of channels to secure the people needed to implement our management strategy and promote workforce mobility. In addition to actively recruiting people with knowledge and experience in new fields, we draw on existing relationships by rehiring former employees and recruiting through employee referrals. These efforts help us secure people who bring both fresh external perspectives and an understanding of Suzuki.

Through these initiatives, we bring in people with diverse experience and values, helping to revitalize the organization and strengthen our competitiveness.

Recruitment of Digital Professionals for Next-Generation Technology Development

Securing digital professionals needed to develop next-generation technologies, including CASE, has become an urgent priority. Amid a shortage of digital professionals in Japan, we have turned our attention to India, which produces a large pool of professionals in this field. We have been recruiting directly from the Indian Institute of Technology Hyderabad since 2018, with a cumulative total of 39 people hired as of March 2026.

In the Indian market, where Suzuki has particular strengths, we are also working to enhance competitiveness through personnel exchanges with our subsidiary, Maruti Suzuki India Ltd., bringing together our teams in Japan and India.

6. Initiatives for “Sustaining Conditions for Maximizing Organizational and Individual Performance”

i) Health and Safety

Health Management

We regard each employee’s health as an important management resource and are committed to health Management. We have adopted a “Health Declaration” under the slogan “Our employees’ smiles inspire our customers’ smiles” and are working to promote understanding of this declaration throughout the company.

To raise employees’ health awareness, we provide education and information to improve health literacy. These efforts include holding roundtable discussions on health management between senior management and employees and sharing the discussions internally. To support mental health, we provide training on self-care and on how managers can support their team members’ mental health. We also develop consultation systems both within and outside the company and provide various forms of support, including consultation services available to employees and their families.

We also promote everyday health through initiatives aimed at establishing regular exercise habits. For example, the Suzuki Athlete Club contributes ideas, develops Suzuki’s own exercise routines, and provides instruction.

Through these ongoing efforts, we have been certified as a KENKO Investment for Health Outstanding Organization every year since 2021, and we received White 500 recognition in both 2025 and 2026. We will continue our health Management initiatives to keep bringing smiles to our customers and employees.

Safety and health

Led by the Central Safety and Health Committee and the safety and health committees at each business site, we carry out risk assessments, workplace inspections, safety training, and other activities to promote awareness of our basic safety principles: “Safety takes priority over everything else,” “All occupational accidents can be prevented,” and “Safety is everyone’s responsibility.”

Through these initiatives, we aim to prevent occupational accidents and embed safety awareness, helping to create a workplace environment where employees can work safely and with peace of mind.

ii) Engagement

Assessing and Enhancing Employee Engagement

We regularly conduct employee satisfaction surveys (engagement surveys) to enhance employee engagement and identify organizational issues. These surveys provide a quantitative understanding of employees’ perceptions of their work, workplace environment, careers, and other aspects of their working lives. We use the findings to improve our HR systems and initiatives and revitalize the organization.

We also promote the “Future R&D Project” to enhance the value of our human capital by increasing organizational vitality and enthusiasm in the technology development functions that support our manufacturing. Starting with changes in the mindset and actions of each individual involved in R&D, this initiative seeks to build organizational energy and foster a culture in which new challenges are continually taken on and new value is created. Led by younger and mid-career employees, with senior management overseeing and supporting their activities, the project creates more opportunities for people to meet and interact, embrace diverse values and perspectives, and act on their own initiative.

By continuously repeating the cycle of “survey, analysis, improvement, and effectiveness evaluation,” we will build organizational energy through individual initiatives and help that energy spread. Through these efforts, we aim to better understand and enhance employee engagement and support the organization’s sustainable growth.

iii) Diversity

Promoting Women’s Advancement

At Suzuki, we respect the human rights, individuality, and aspirations of every employee, regardless of gender, age, nationality, religion, or disability. We are working to create an environment and foster a culture in which employees can develop and fully apply their abilities through diverse working arrangements. We regard promoting women’s advancement as the first step in these efforts.

To make Suzuki a company where women can play an even greater role, in 2020, we set a target to triple the number of women in managerial and supervisory positions by 2025 compared with FY2015. We worked to increase the number of women in these positions, including managers and candidates for management roles. As a result, the number reached 223 in FY2024, or 4.2 times the FY2015 level, achieving the target ahead of schedule.

Meanwhile, in FY2025, there were 34 female managers, accounting for 2.23% of all managers. Our long-term aim is to bring the proportion of female managers into line with the proportion of women in our workforce. As an initial step, we aim to increase the proportion of female managers to 5.0% by 2030. To achieve this, we will not only support employees in balancing work and family responsibilities but also help them develop their careers.

Supporting Work–Family Balance

We are creating an environment where motivated and capable employees can continue working by establishing systems that enable them to choose from a range of working arrangements. To help employees balance work with childcare or family caregiving, we provide a reduced working hours system and leave and leave-of-absence arrangements to support working arrangements suited to different life stages.

As part of these efforts, we promote men’s involvement in childcare. In FY2025, the childcare leave take-up rate among male employees reached 73.2%, reflecting steady progress in fostering a workplace culture that supports men’s involvement in childcare.

We also continue to create an environment where employees can work with peace of mind by enhancing support for employees and their families. These efforts include organizing get-togethers for employees who have taken childcare leave and providing online consultations with pediatricians and obstetricians/gynecologists.

In recognition of these efforts, we received “Platinum Kurumin” certification in 2024. We will continue to raise awareness of work–life balance throughout the workplace and promote a supportive working environment.

Strengthening Support for Global Talent

As we operate globally, people from 23 different countries and regions play active roles in our organization.

To enable people from diverse backgrounds to collaborate and create new value while drawing on their individual characteristics and values, we are expanding opportunities for people with different cultural backgrounds and values to work together. These opportunities include two-way personnel exchanges with our overseas operations, including those in India, as well as direct recruitment from the Indian Institutes of Technology and the Indian Institutes of Management. Through these initiatives, we seek to create business value by leveraging each individual’s strengths.

To ensure that our global talent can work with peace of mind, we are improving workplace environments while also enhancing living environments and providing support for daily life. For example, to accommodate diverse dietary needs, we serve Indian vegetarian dishes developed in collaboration with a local company at our headquarters’ employee cafeteria. We carry out these initiatives in collaboration with local governments and local companies.

LGBTQ

At Suzuki, our employment regulations prohibit harassment and discriminatory language and behavior related to sexual orientation and gender identity. We also work to foster a culture in which employees understand and accept diversity in sexual orientation and gender identity. Our efforts include covering this diversity in the “Compliance Handbook,” which is distributed to all employees. In addition, we have introduced the same uniforms for all employees regardless of gender and increased the number of all-user restrooms.

Employment of people with disabilities

We are working to create an environment where employees with disabilities can work with peace of mind over the long term. We assign dedicated staff within the Human Resources Div. and place vocational life counselors for employees with disabilities in the workplace to help address their concerns and problems.

As of March 31, 2026, Suzuki Support Co., Ltd., a special subsidiary established in February 2005, had 98 employees with disabilities, including those with severe disabilities. Working closely with their supervisors, these employees are engaged in cleaning offices within Suzuki’s head office, employee dormitories, and related facilities, managing stationery within the company, and carrying out farm work. They have built positive relationships with their colleagues and play an active role as members of the organization.

At Suzuki, we will continue our efforts to enable people with disabilities to experience the joy of working and personal growth through participation in society.

iv) Labor practices

Employee Benefits

We are working to enhance our employee benefits to enrich our employees’ lives and create a comfortable working environment. As part of these benefits, we have introduced an employee stock purchase plan that enables employees to own shares in the company. The plan allows improvements in company performance to translate into increases in the value of employees’ assets through the share price, helping to boost motivation and foster a sense of participation in management. To make the plan more attractive and easier to join, in April 2023, we increased the incentive rate for contributions to our employee shareholding association from 5.6% to 100%, with a maximum incentive amount of ¥10,000.

We have also introduced a flexible benefits program to provide a variety of support options tailored to each employee’s needs. In addition, we are working to make everyday working life more comfortable by improving our employee cafeterias and introducing food trucks.

Through these initiatives, we are working to improve employee satisfaction and create a comfortable working environment.

Labor-management relations

We are committed to building relationships based on dialogue between labor and management. We reviewed the traditional framework of spring labor-management negotiations, and, in 2022, shifted to “Spring Labor-Management Dialogue.” Through these discussions, we seek to deepen mutual understanding and address issues. The dialogue provides a forum for the company to share its future initiatives with the union, discuss challenges, and work together toward solutions. It also enables both sides to align their efforts to support Individual Growth, including the development of job-related skills.

We believe it is important for managers, as well as union members, to take part in the dialogue. Accordingly, we are promoting initiatives that bring management and employees on the front lines together, including messages from the President to managers. In 2026, we also worked to promote company-wide sharing and understanding by sharing the dialogue, including the President’s message, with employees in real time.

Furthermore, we continue to implement measures based on the dialogue and carry out improvement activities at the workplace level, making these ongoing efforts rather than one-off initiatives. Through these efforts, we aim to strengthen trust between labor and management, enhance the organization’s ability to execute, and support sustainable growth.

v) Compliance

Ensuring compliance

To ensure that the memory of the 2016 fuel economy and emissions testing issues, as well as the 2018 final inspection issues, is never forgotten, we conduct the annual “Remember 5.18” initiative. Led by the President and executives, this program involves all employees, fostering a workplace culture designed to prevent misconduct by enhancing compliance awareness and open communication. Starting in FY2023, we launched a comprehensive company-wide inventory of all business operations against legal regulations. This review enables us to assess daily operations for any potential risks and resolve underlying issues while they are still minor.

In addition, we distribute the “Compliance Handbook”, which specifies the Code of conduct that employees should observe in their daily duties, to all employees. We also deliver one compliance-related quiz every day, striving to create a culture where employees remain continuously aware of compliance in their daily routines.

Through these initiatives, we establish compliance awareness throughout the entire organization, leading to the promotion of appropriate business activities and the securing of trust from society.