A. We compared the percentage of desirable correlations with those of other companies conducting similar analyses for an objective perspective on our analysis results. As in previous results, we demonstrated higher results across the board compared to the averages of other companies. Our environmental items were determined to be 29.3%, compared to the 18.6% corporate average; social items were 42.1%, compared to the 16.0% corporate average; and even governance items were 21.4%, compared to the 17.2% corporate average. The results indicate that a higher percentage of Nissin's ESG initiatives contribute to corporate value.

We also compared our values with the average values of other companies in the “Top 30 ESG Indicators for Improving Corporate Value.”^*5 As a result, Nissin demonstrated 28 relevant indicators, 15 of which were able to detect significant and desirable correlations. Among them, when the "delayed penetration effect," which indicates how many years later it leads to PBR improvement, is less than the average of other companies, it indicates a metric with immediate impact on enhancing corporate value. In this comparison, eight indicators have demonstrated a short delay penetration effect, and many are related to human capital, such as the Reduced Working Hours for Childcare Program and Overseas Trainee System Users (see red chart).

In June 2022, ABeam Consulting compiled analysis results from Japanese companies using the Yanagi Model, publishing the top 30 ESG indicators that readily correlate with corporate value.

A. In FY 3/2022, we conducted a value relevance analysis to verify the flow from capital (measures invested and implemented as capital) to outcomes that create economic and social value in the NISSIN FOODS Group's value creation process, leading to increased corporate value. For the value relevance analysis, we analyzed both the correlation between ESG indicators and corporate value and the correlation between ESG indicators. This tells a story that verifies the correlation between the indicators that result from each measure and improved corporate value by showing what path each ESG initiative takes to contribute to improved corporate value. We were able to statistically verify the hypothesis by looking at each correlation, yet failed to also verify the effect of the measures and actions that formed the basis of the indicators. We conducted Value Tree Analytics (VTA) as an attempt to quantify the effects of said measures. We targeted the human capital area in this analysis, taking into account the importance and the granularity of data retention.

The analysis is organized to cover issues related to the area of human capital, as well as our human resource management process. We verified the measures connected to said issues, observing if or how they correlate with the improvement of engagement factors^*7 for genders and job types (departments).

As a result, the Value Tree Analytics (VTA) demonstrated that human capital measures embodying the "value" of the NISSIN FOODS Group's value creation process contribute to each department's engagement in promoting elements like work-life balance. This creates outputs/outcomes and improves corporate value.

Comparing the quantified results, we found, for example, that women's leadership development programs tend to contribute significantly to improving engagement in the areas of "Departmental Environment," "Corporate Environment," and "Sense of Growth" for women. We feel that these measures may be viewed as important and effective, improving shareholder value through improved retention rates and expansion of intellectual capital.

The NISSIN FOODS Group conducts an employee engagement survey consisting of 32 items under five categories: Ease of Working, Job Satisfaction, Departmental Environment, Corporate Environment, and Supervisors.