ESG Meeting

March 26, 2024

AgendaSustainable Management / Materiality（16:00-16:10）
President, Representative Director, and CEO

Gyo Sagara

Corporate Governance（16:10-16:25）
Member of the Board of Directors, Outside Director

Masao Nomura

Expansion of Human Capital /Conservation of the Global
Environment / ESG Evaluation（16:25-16:45）
Member of the Board of Directors, Senior Executive Officer/
Executive Director, Corporate Strategy &Planning,
Sustainability Promotion

Toshihiro Tsujinaka

Q&A session（16:45-17:00）

1 / 45

Cautionary Notes
Forecasts and other forward-looking statements included in this document are based on information
currently available and certain assumptions that the Company deems reasonable.
Actual performance and other results may differ significantly due to various factors. Such factors
include, but are not limited to:( ⅰ ) failures in new product development(ⅱ)

changes in general economic conditions due to reform of medical
insurance system(ⅲ)

failures in obtaining the expected results due to effects of competingproducts or generic drugs( ⅳ ) infringements of the Company’s intellectual property rights by third parties(ⅴ)

stagnation of product supply from the delay in production due to natural
disasters, fires and so on( ⅵ ) onset of new side effect of post-licensure medical product and,( ⅶ ) currency exchange rate fluctuations and interest rate trend.

Information about pharmaceutical products (including products currently in development) included inthis document is not intended to constitute an advertisement of medical advice.
2 / 45

Sustainable Management / Materiality/ 44

Sustainable Management Policy
For more than 300 years since our founding, we have walked hand in hand with society. To help
people who are suffering from disease, we have created a series of innovative new medicines that
had been thought to be impossible. We will continue to contribute to people’s health by practicing
our Corporate Philosophy and taking on the challenge of realizing a sustainable society throughresponsible business activities.

Contributing to People’s HealthIn addition to our own drug discovery, we will take on the challenge of drug research and development in collaboration with theworld’s top scientists, and bring more hope to patients and their families around the world by providing them with original andinnovative medicines that are safe, secure, and appropriate.
We will contribute to the realization of a society in which people can live healthier lives through our evidence- based, nextgeneration healthcare business.
Preserving a rich global environment for
future generations
Conserving

Realizing a society in which everyone
can play an active role

Establishing a highly transparent androbust management foundation

We are deeply aware of our social
responsibility to the environment, and will
actively adopt eco-friendly technologies andwork together with our suppliers andpartners to pass on a prosperous andsustainable global environment to future
generations.

Through our business activities, we willcontribute to the realization of a society inwhich the human rights and diversity of all
people are respected and everyone canplay an active role.

We will build a strong foundation throughcorporate governance and conduct highly
transparent business activities bystrengthening compliance and risk
management.

Material Issues

4 / 45

Update Material Issues（Partial Revision）
STEP.1

Understanding of Issues

STEP.2

Identify Material Issues

STEP.3

Validation

STEP.4
Review• Reflects changes in the external/internal
environment and stakeholder’s voices• Reflect the business situation and thecontents of the company's initiatives「 Value Preservation」「Expansion of Human Capital」
Updated language and content on Material Issues
5 / 45

Partial Revision of Material Issues (Content：Example）
12

Assurance of ProductReliability and Safety
Quality assurance and safety management of pharmaceutical

Reason for
products are fundamental to our business. If a problem were to
being a priority occur in either of these areas, it would be a serious risk that could
violate our corporate philosophy, harm the health of patients, andissue
significantly reduce our social value and raison d’être.

Vision over the A global specialty pharmaceutical company with establishedmedium to long organizational systems for appropriate quality assurance andsafety management.
term

Indicators• Construction of global quality and safety management systemof Pharmaceuticals and investigational product, andEstablishment of Data Reliability Assurance System• Zero significant findings from regulatory inspections• Zero recalls of Ono products• Create appropriate global systems for product quality andsafety management
Major initiatives • Establish an operation to study safety signals of investigational
products• Establish a system to respond to inspections of products for
the U.S. market in preparation for the launch of ONO-4059 in
the U.S.

12 Assurance ofReliability and Safety
Quality assurance and safety management of pharmaceutical

Reason for
products are fundamental to our business. If a problem were to
being a priority occur in either of these areas, it would be a serious risk that could
violate our corporate philosophy, harm the health of patients, andissue
significantly reduce our social value and raison d’être.

As a global specialty pharmaceutical company, quality assurance
Vision over the and safety management of our products and investigational
product, as well as reliability assurance of related data are
medium to long
thoroughly implemented so that healthcare professionals andtermpatients can use our products and investigational productproperly and with peace of mind.

Indicators• Construction of global quality and safety management systemof Pharmaceuticals and investigational product, andEstablishment of Data Reliability Assurance System• Zero significant findings from regulatory inspections• Zero recalls of Ono products• Establishment and appropriate operation of an appropriate
global system for quality assurance and safety management ofdrugs and investigational product and reliability assurance ofMajor initiatives
related data
• Established a system to respond to inspections of products for
the US market in preparation for the launch of ONO-4059 in
the U.S.

Revised to reflect previous in-house initiatives

6 / 45

Update of Material Issues（Partial Revision）
Current Material Issues

Partially revise the title of Material Issues
Currently：Assurance of Product Reliability and Safety
12

Assurance of Reliability and
SafetyCurrently ：Protection of Environment
14Conservationof the global environment

Currently ：Thorough Compliance
16

Thorough Compliance

Currently ：Supply Chain Management

Realization of Sustainability
Management with Business Partners

17

Partially revised to reflect changes in the external/internal environment and stakeholder’s feedback
7 / 45

New Material Issues （Overview）

12

Assurance of reliability andsafety13 Stable Supply of Products
14

Conservation of the global
environment

15 Respect for Human Rights
16

コンプライアンスの徹底
ThoroughCompliance

17

Realization of Sustainability
Management with Business
Partners

8 / 45Materiality Issue 1

Creation of Innovative Drugs
Management of priority issue
Reason for being apriority issue

The creation of innovative drugs is the practice of our corporate philosophy, “Dedicated to the Fight against
Disease and Pain,” and is the core value we provide to society. To sustainably create this value, drug
discovery research using the latest scientific knowledge and cutting-edge technologies is crucial, andstrengthening our competitiveness in drug discovery research will lead to our growth.

Vision over the
medium to long term Cooperate with top scientists and accelerate the creation of new drugs that can change the world.

Indicators

Major initiatives

The number of new
drug candidates
going to clinical trials

２ （ONO-8250、ONO-4538HSC）

 Explore unique breakthrough drug seeds and creation of new drug candidates through open innovation
 Improve the speed of creation of new drug candidates by selecting optimal modalities, utilizing artificial
intelligence (AI), etc.
 Promote drug discovery research based on human disease biology using the latest technologies, suchas AI and informatics, as well as patient- derived samples
 Promote translational research by searching for biomarkers based on the mechanism of action
9 / 45Materiality Issue 2

Pipeline Expansion
Management of priority issue
Reason for
Our pipeline is the source of our sustainable growth. We continue enriching our pipeline to constantly
being a priority provide innovative drugs to patients.
issue
The speed and accuracy of establishing PoC* for new drug candidates are improving, and the
Vision over the pipeline is enriched through licensing activities.
medium to long ※ PoC (Proof of Concept): PoC studies are an early stage of clinical drug development to confirm
whether the drug candidates demonstrate the clinical safety and efficacy expected during the drug
term
discovery phase.
 The number of drug candidates in the clinical development stage• 24
 The number of newly introduced drug candidates: 1 (exclusive• 1 （NXI-101）
option and asset purchase agreement for itolizumab
Indicators• The clinical trial in the US
 Approvals received in the U.S. and Europe: Total of 12 projects at
is making steady progress
the clinical trial stage
 Establish PoC on multiple projects and conduct global clinical trials
・Continuously building a sytem development for early establishment of PoC
・Further enhancement for translational research (TR) and reverse translational research (rTR)
Major initiatives
・Improving the speed and accuracy of PoC establishment using cutting-edge technology andmethods
10 / 45
Strengthen licensing activities to obtain global rights

Corporate Governance/ 44

Corporate Governance Structure

12 / 45

Members of the Board of Directors/Audit & Supervisory Board
MemberName

Inside（4）
Members of
the Board（７）

Gyo Sagara

President, Representative Director, and Chief Executive Officer

Toshihiro
Tsujinaka

Member of the Board of Directors, Senior Executive Officer/ Executive Director, Corporate
Strategy &Planning, Sustainability Promotion

Toichi Takino

Member of the Board of Directors, Senior Executive Officer / Executive Director, Discovery &Research

Kiyoaki
Idemitsu

Outside（3）

Audit &
Supervisory
Board
Member（４）

Outside（2）

Member of the Board of Directors, Executive Officer / Executive Director, Clinical Development

Masao Nomura

Corporate Advisor, lwatani Corporation
Outside Director, Keihanshin Building Co., Ltd.

Akiko Okuno

Professor, Faculty of Business Administration, KONAN UNIVERSITY

Shusaku Nagae
Inside（2）

Statas, Assignments or Important Concurrent holding of Positions

Special Corporate Advisor, Panasonic Holdings Corporation
Audit & Supervisory Board Member, Nikkei Inc.

Katsuyoshi
Nishimura

Full-time Audit & Supervisory Board Member

Hironobu
Tanisaka

Full-time Audit & Supervisory Board Member

Yasuo
HishiyamaPartner Attorney at Law, TANABE & PARTNERS
Member or appraisal committee (Land Lease Non-Contentious Cases) at Tokyo District Court

Akiko Tanabe

Representative, Akiko Tanabe CPA officeOutside Director, OIE SANGYO CO., LTD.
Partner of Midosuji Audit Corporation

13 / 45

Strengthening of Corporate GovernanceInitiative for Corporate GovernanceMaterial Issue 18

The executive appointment and executive compensation, both of which have governance-related
importance are discussed at the meetings composed of highly independent Outside Board Director as
key members in order to ensure management transparency and objectivity.
Independent Outside Board Directors

Internal Board Directors

Masao
Nomura

Akiko
Okuno

ShusakuNagae

Gyo Sagara

Executive Appointment
Meeting

Toshihiro
Tsujinaka

Chairperson

〇

〇

〇

〇

Executive Compensation
Meeting

Chairperson

〇

〇

〇

ー

when examining remuneration for the Representative Director, theRepresentative Director is required to leave the meeting.

Executive Appointment Meeting

Executive Compensation Meeting• Selection of candidates for Corporate Officers,
Members of Board of Directors and Audit &Supervisory Board Members• Deliberation on successor plans• Deliberation on Changes in Representative
Directors（FY2023）• Evaluation regarding fixed and performance-linked
compensation and deliberation of compensation amounts• Supervision to ensure the compensation system function in a
way that encourages sound growth• Deliberation on revision of compensation system（FY2022）

14 / 45

Strengthening of Corporate GovernanceInitiative for Corporate GovernanceMaterial Issue 18

The executive appointment and executive compensation, both of which have governance-related
importance are discussed at the meetings composed of highly independent Outside Board Director as
key members in order to ensure management transparency and objectivity.
Independent Outside Board Directors

Internal Board Directors

Masao
Nomura

Akiko
Okuno

ShusakuNagae

Gyo Sagara

Executive Appointment
Meeting

Chairperson

〇

〇

〇

Executive Compensation
Meeting

Chairperson

〇

〇

－

After Apr. 1, 2024

Reconsideration
on attendees ofInternal Board
Directors

Attends the Executive Compensation Meeting as
explanator of company proposals.

Executive Appointment Meeting

Executive Compensation Meeting• Selection of candidates for Corporate Officers,
Members of Board of Directors and Audit &Supervisory Board Members• Deliberation on successor plans• Deliberation on Changes in Representative
Directors（FY2023）• Evaluation regarding fixed and performance-linked
compensation and deliberation of compensation amounts• Supervision to ensure the compensation system function in a
way that encourages sound growth• Deliberation on revision of compensation system（FY2022）

15 / 45

Succession plan

Involvement of outside directors～2022

Execution for selective training such as executive training programsJan. 2023

Confirmed to start specific discussions to select successor of the president

Jul. 2023

Narrowing down candidates

Oct. 2023

Interview with candidates only by outside director - Individually expressed
and aggregated opinions

Nov. 2023

Based on the results of the interview, outside directors and the president
discussed (and determined a successor candidate)

Dec. 2023

Discussed the timing of the president change and the next management
systemJan. 2024

Resolved to change the Representative Director at the Board of Directors
Meeting, Public Announcement

Independent outside directors led discussions on the
succession plan

16 / 45

Expansion of Human Capital /Conservation of the Global Environment /ESG Evaluation
17 / 44

Expansion of Human Capital

18 / 44

Partial Revision of Material Issues "Expansion of Human
Capital"8

Expansion of human capital
VisionVisionWe provide talent development programs to selected people,

Based on the human resource strategy for the realization of the corporate

approximately 30% of employees of our group companies, andphilosophy and Vision, we are making efforts to recruit and develop human

the creation of corporate value is driven through talentdevelopment. In particular, the enhancement of executive talent,
globally competent talent, digital talent, and innovation talent
have been set as important themes.

Indicators
 In next executive talent pool: ≧ 250)
 In globally competent talent pool: ≧ 300
 Persons who will have participated in digital talentdevelopment and training program: ≧ 500
Including those who can plan, manage, and execute the
DX project: ≧ 100
 Core innovation talent: ≧ 180)
(Total number of persons up to 2026)

resources that contribute to business growth and to realize an organizational
culture that leads to improvement of diversity and fostering a sense of unity.
Systems and measures that attract human resources have been established,
and an environment is provided where all employees can work with peace ofmind and safety.

Indicators
Added following items to existing KPIs
• Professional to promote growth strategies: Recruiting and training ofapproximately 700• Percentage of behavioral change after training: Maintained at least 85%
at the mean of essential training by stratum• Engagement : Global Life Sciences• Percentage of female managers: 10%• Percentage of employees taking either childcare leave or reduced work
hours for men: 80%• Healthy age: -3.0 years
19 / 45（ Target for the end of fiscal 2026)

Human Resources Strategy for Expansion of
Human Capital

Material Issue 8

Professional
TalentVersatile
Talent20 / 45

1. A Pool of Talent for All Growth Strategies

Material Issue 8

 In the “A pool of talent for all growth strategies," the status of versatile and professional talent is followed.
 Initiatives and progress are described later.
Category

KPI iteｍ

A pool of talent for
all growthstrategies

Recruiting and training versatile talent goals

Enhancement of
talent capabilities

Working to foster
an organizational
culture with highemployeeengagement.

KPI figure
Next generation executive talent
Global talent
Digital talentInnovation talent

≧250
≧300
≧500
≧180

Recruiting and training professional talent goals

Recruiting and training of approximately 700 by FY2026

Annual number of hours of training per employee

Consolidated：54.8 hour／year(FY2022) ※Actual results
Non-Consolidated：55.9hour／year (FY2022) ※Actual results

Percent change in behavior after training

Average of the training required for each grade：Maintain ≥ 85%

Engagement

More than Global life science

Percentage of female managers（DE＆I）

4.1%(FY2022)→ 10%(FY2026)→ 20%(FY2031)

Percentage of male employees taking childcare
leave
Male childcare leave + Reduced work hours（Act

65.2%（FY2022）
68.8%(FY2022) → 80%(FY2026)

Health age (difference between health age andactual age)

▲1.8 age(FY2022)→▲3.0 age(FY2026）

on Promotion of Women's Participation andAdvancement in the Workplace）

21 / 45

1. Development the Versatile Talent who Support theMaterial Issue 8
Management Foundation ①－Training of Next generation executive talent ・Global talent －Next generation executive talent

Development of next-generation management candidates

ObjectTalent capable of serving as nextgeneration office managers

Talent capable of serving as nextgeneration division managers andexecutive

LIP
Around 35 age

MMDYoung Manager

ETP
Senior Manager

1 year

2 year

4 yearSubject

Talent capable of carrying out future management

Training

ILT
Around 30 age

Term

8 months

GSIP：Global Skill Improvement Program

1 yearGlobal Talent

GSIP is a program aimed at developing talent who can influence the entire company while demonstrating
leadership within a team and collaborating appropriately with those around them in any field, whether
domestic or overseas.

（※ The main purpose of the training is not to improve language skills ）Cross-cultural communication: Ability to build relationships of trust even with different values andcultural backgrounds

22 / 45

1. Development the Versatile Talent who Support theMaterial Issue 8
Management Foundation ②－Digital talent development training －Definition

DigitalTechnology talentBusiness talent fortransformation

Understanding DX

DX participation

Able to understand DX

With the participated DX project
ActiveUnderstand an overview of digitaltechnology and the importance ofbusiness transformation

Understand Digital technology and thefoundation of business transformation
when participating in the DX project
can play an important role

DX leadDX project
Able to plan, manage, and execute
Understand and practicea variety of digital technologies
Set a problem area for BusinessTransformation can execute on the
project

Training

e-learning

KPI(FY2026)

All employees

Total 500

Technology and Business
100 people each

VisionAll employees understand the digitaltechnology overview and Importance ofbusiness change. Many of them arepotential participant of DX talent

The personnel who completed thetraining play a central role with daily DX
activities

The personnel who completed thetraining leads daily DX

Lecture + Exercise/Project Based Learning

23 / 45

1. Development the Versatile Talent who Support theMaterial Issue 8
Management Foundation ③－ Development of innovative talent (Ono Innovation Platform) － Talent development program aimed at accelerating the challenges of each and every employee
 Supporting employees so that they can discover what they want to accomplish and voluntarily takeon challenges

Started in June 2021, Over 1,300 employees have participated so far (approximately 37%)
24 / 45

1. A Pool of Talent for All Growth Strategies

Material Issue 8- Development Status of Cross-Sectional Talent - Ensure that cross-functional talent are developed through various trainings, etc.
 In the future, we will maximize the use of Workday, the new talent management system, to promote
efficient management.
Next generation executive talent (FY2022)

Actual results

Target value (2026)

148

≥ 250

Actual results

Target value (2026)

171

300

Actual results

Target value (2026)

DX participation

268 (54%)500

DX lead40 (40%)100

Actual results

Target value (2026)

Selection Training (ILT, LIP, MMD, ETP)
Global talent (FY2022)
Global Talent Development Training
Digital talent (FY2022)

Innovative talent (until FY2023)
V2V (secondment to venture companies)

14

HOPE (business creation) * First-pass in business competitions

19

Outsight (venture proposal)

24

Operational Transformation Program

180

0 (under design)

25 / 45

1. A Pool of Talent for All Growth Strategies

Material Issue 8- Goal of hiring and developing specialists: About 700 in the next 5 years - For specialized talent, the organization of talent needs was completed in FY 2022 (approximately
700 people)
 From this fiscal year, we will start hiring experienced employees and developing them within eachdepartment in accordance with talent’s needs
Growth strategy

Definition①

Maximization of Product
Value

Talent capable of recognizing underlying needs from a patient-centered perspective andpropose and implement solutions②

Reinforcement ofpipelines andacceleration of global
development

Talent with the management skills to globally promote open innovation, drug candidates
licensing, and clinical development

Realization of direct
sales in the US andEuropeTalent capable of uniting diverse talent to advance our global business

Expansion of businessdomainTalent capable of recognizing needs and implementing profitable solutions for society

Common to all growthstrategies

Support promotion of each growth strategy③④

 More than 40% of the the required number (as of the end of February 2024)
 Conduct rolling year after year according to the progress of the project

Number ofparticipants

Approximately
700

26 / 45

2. Enhancement of Talent Capabilities

Material Issue 8

 We are advancing initiatives aimed at the development of all employees' capabilities through talentdevelopment activities.
 Initiatives and progress are described later.
Category

KPI iteｍ

A pool of talent for
all growthstrategies

Recruiting and training versatile talent goals

Enhancement of
talent capabilities

Working to foster
an organizational
culture with highemployeeengagement.

KPI figure
Next generation executive talent
Global talent
Digital talentInnovation talent

≧250
≧300
≧500
≧180

Recruiting and training professional talent goals

Recruiting and training of approximately 700 by FY2026

Annual number of hours of training per employee

Consolidated：54.8 hour／year(FY2022) ※Actual results
Non-Consolidated：55.9hour／year (FY2022) ※Actual results

Percent change in behavior after training

Average of the training required for each grade：Maintain ≥ 85%

Engagement

More than Global life science

Percentage of female managers（DE＆I）

4.1%(FY2022)→ 10%(FY2026)→ 20%(FY2031)

Percentage of male employees taking childcare
leave
Male childcare leave + Reduced work hours（Act

65.2%（FY2022）
68.8%(FY2022) → 80%(FY2026)

Health age (difference between health age andactual age)

▲1.8 age(FY2022)→▲3.0 age(FY2026）

on Promotion of Women's Participation andAdvancement in the Workplace）

27 / 45

2. Enhancement of Talent Capabilities

Material Issue 8- Building a rich training lineup  Conducted workshops for all employees to disseminate the Mission Statement, along with tiered training andsupport for self-education
 Hold trainings for effective operation of personnel measures such as rater training in addition to the following
General employees
Title

New hiredemployee

Next generation
executive talentdevelopment

Management Staff

Mid-level
employees

Manager candidates

ILT

LIP

Manager
grade

SeniorManagers
ETP

MMD

Global talentdevelopment

Training to develop global talent

Digital talentdevelopment

Training to develop digital talentInnovation
Talent development

Training to develop innovative talent

Training by hierarchy

Manager

Annual training

Training for G2/G1/P2 promotions

Manager
Promotional training
Follow-up Training

Self-development
supportSupport for voluntary training, participation in seminars, correspondence courses, online foreign language conversation
lesson, and qualification tests

Activities to heighten
knowledge and deepen
understanding of our
mission statement

Mission Statement Understanding, Empathy Workshop

Other

Initiatives to enhance the perspective of patients (Patient lecture meetings and initiatives to understand patient experience)
Diversity
Training

Career Planning Training

Diversity
Management Training

28 / 45

2.

Enhancement of Talent Capabilities

Material Issue 8- Training outcomes, etc. (FY 2022 preliminary report)  Behavioral change rate after receiving training and the number of hours of training per person met the target or
exceeded the level of the last year There is room for further improvement (increase in users) in self-education support and voluntary participatory
trainin① Behavioral change rate after receiving training (evaluation by superiors)
85.9%・・・ Target to maintain at least 85%② Training hours per person
Organizational unit

Training hours per person (Reference: FY2021)

Training expenses per person

Consolidated

54.8 h (50.8 h)

122,000 yen

Non-consolidated

55.9 h (53.8 h)

126,000 yen<For self-development/self-participation training, more appropriate dissemination and approaches are needed>
Measures
Self-development system
Measures
Voluntary Participatory
Training

Number of users(Total number of people)
1093 (32%)

Number of users(actual number)

Up to 70,000 yen/person/year
per user692 (20%)

Number of participants(Total number of people)

Number of participants(actual number)

1263 (37%)

774 (23%)

per employee
55,000 yen

11,000 yen

Number of participants
per userper employee
1.6 times

0.4 times

29 / 45

3. Working to Foster an Organizational Culture with High
Material Issue 8
Employee Engagement
 In "Fostering an organizational culture with high employee engagement", we are following up on the progress ofcreating a system to ensure that the talents we have hired and developed can work with peace of mind for a long time.
 Initiatives and progress are described later.
Category

KPI iteｍ

A pool of talent for
all growthstrategies

Recruiting and training versatile talent goals

Enhancement of
talent capabilities

Working to foster
an organizational
culture with highemployeeengagement.

KPI figure
Next generation executive talent
Global talent
Digital talentInnovation talent

≧250
≧300
≧500
≧180

Recruiting and training professional talent goals

Recruiting and training of approximately 700 by FY2026

Annual number of hours of training per employee

Consolidated：54.8 hour／year(FY2022) ※Actual results
Non-Consolidated：55.9hour／year (FY2022) ※Actual results

Percent change in behavior after training

Average of the training required for each grade：Maintain ≥ 85%

Engagement

More than Global life science

Percentage of female managers（DE＆I）

4.1%(FY2022)→ 10%(FY2026)→ 20%(FY2031)

Percentage of male employees taking childcare
leave
Male childcare leave + Reduced work hours（Act

65.2%（FY2022）
68.8%(FY2022) → 80%(FY2026)

Health age (difference between health age andactual age)

▲1.8 age(FY2022)→▲3.0 age(FY2026）

on Promotion of Women's Participation andAdvancement in the Workplace）

30 / 45

Landscape of Employee Engagement (FY 2022)

Material Issue 8

 The Ono Pharmaceutical Group's overall employee engagement (68) is:High level compared to domestic benchmark (58) (slightly lower than global benchmark (all industries) (76))
 Aim to achieve an engagement score higher than the Global Benchmark (Life Sciences) (79)Engagement score (Ono Pharmaceutical Group)3293 responses (93% response rate)

Pairwise Benchmark Comparison of Positive%
Global32

68% of Positive

Japan(All industries)

All industries

Life
Science

76

79

58

-8

-11

+10

*Positive%: Response to each question on a 5-point scale compared to the total
number of employees who responded Percentage of employees who responded(5. "Strongly agree" 4. "Somewhat agree")31 / 45

3. Fostering an Organizational Culture with High Employee
Material Issue 8
Engagement
 Aim to improve engagement by providing systems and measures to attract talent and enhancing the sense of unity
among the group (emphasis on the balance between career autonomy and organizational commitment)
 Establishing the foundation to support the talent and organization that will generate sustainable business growth(DE & I and health and productivity management)

32 / 45

Diversification of Managers

Material Issue 8

 In diversification of managers, efforts are being made with a focus on improving the ratio of female
managers

Management, etc. (attribute) Employment form

 Gender（biological）2024.01
Employee

Employee

Percentage ofmanger

Male

80％

94.4％

Female20％2024.01
Percentage ofmanger

Non-Career hire

81％

83％

5.6％

Career hire

19％

17％

Target 2026

10%

Contract rehiring

2031

20%

4.6％

（ approximately 160）

33 / 45Material Issue 8
Development Program for Diversifying Experiences andPerspective of Individuals ⇒ Expansion of the Open Recruiting System

To promote employee career development and enhance vitality and competitiveness throughtalent exchange
Solicit job offers from each department and realize transfers by matching with applicants
FY 2022
Expansion

Application
conditions① At least 3 years of experience with the company*Regardless of the number of years of affiliation with thecurrent organization

Job opening

Abolition (no job opening)

Number of
departments with job
offersNumber of applicants
Number of successful
applicants(transferred)

FY2019FY2020

FY2021

FY2022

FY2023

12

13

14

34

49

114

100

79

134

191

6

8

6

25

52

・Relaxation of application conditions and elimination of job opening limits=>More opportunities for career realization
・Presentation of slides introducing departments with job offers=>Advancing Challenges by Understanding the Contents of Operations=>Effect to reduce mismatch after transfer

Evolving to a system that encourages employees to build careers and take on
self-directed challenges

34 / 45Material issue 8
Individual Diversity Development Program 2:⇒ Introduction an Internal Challenge Job System• Those who want to try a different role but are concerned about suitability• Those who are not thinking about moving to another department right now but want to broaden theirperspectives by learning more about other departments• Those who want to know about the work in a specific department or deepen exchanges with people
in other departments⇒

80% of work is in the current department and the remaining
20% concurrently serves in another department
FridayＭＲ in Kyusyu area！

FY2022

Head officeTalent Development
Dept. member

Perform head office duties
while staying in Kyushu(20％)

FY2023（Pilot test）（Introduction）[Applicants]

87

108

[Participants]

20

46

35 / 45

Toward Diversifying Workstyles

Material Issue 8① Changed the operation of working from home and introduced of the Super Flex system (May 2023)
To foster a sense of unity and allow diverse working styles at the same time, telecommuting rules will be

Set by Each Division, in principle.
Optimal work styles are sought through periodical reflections and reviews.

∙ In principle, an opportunity for face-to-face communication should be provided at least

twice a month, e.g., by holding a meeting attended in person by all members of the team.
*At the same time, a super flex system was introduced that eliminated core time

② Introduction of dual/concurrent jobs (June 2023)[Subjects] All employees[Purpose] Career growth and growth of employees, activation of the organization, andcreation of innovation⇒ Leading to the growth of employees by obtaining external knowledge in various fields,
By giving it back to our main job, we can make new proposals that have never been made before andNew businesses can be expected to be created

In FY 2023, more than 40 employees applied
36 / 45

Landscape of Employee Engagement (FY 2023)

Material Issue 8

 Employee engagement across the group is high compared to the benchmark for all domestic
industries (Slightly behind Global BM)
 Compared to the previous survey, the positive response rate tended to increase slightly (+1),
but “I am excited about coming to work ” particularly improved (+7)

FY 2022

Engagement (Overall)

32

68

Paired Benchmark (BM) Comparison of
Positive%

By question

FY 2023

Engagement (Overall)

69

Japan
All industries

-3

+8

-1

-9

+7

-1

-8

+20

0

68

-8

+13

-2

64

-5

+11

-1

-17

+12

+7

-8

+12

+1

3. I am motivated to go beyond what isnormally expected to help Ono
Pharmaceutical Co, LTD. be successful.

81

5. I am proud to work for Ono
Pharmaceutical Co, LTD.

75

1. I would recommend Ono Pharmaceutical
Co, LTD. as a place to work.

Positive %6. Considering everything, how would you
rate your overall satisfaction at Ono
Pharmaceutical Co, LTD. at the present
time?
2. I would choose to stay with Ono
Pharmaceutical Co, LTD. even if offered thesame pay and benefits elsewhere.
4. I look forward to coming to work at Ono
Pharmaceutical Co, LTD.

FY 2022Comparison

GlobalLife
Science69

55

Overall Engagement(6-question mean)*Green/red if benchmark is ≥ ±5

37 / 45

Promotion of Health and Productivity Management Material Issue 8
Our company KPIs
Fisical Year

2018

2019

2020

2021

2022

Difference between actual
age and healthy age

▲1.4

▲1.5

▲1.4

▲1.8

▲1.8

Our company's
Health Challenges

Obesity

Mentaldisorder
among
young
employees
MentaldisorderProlongedNo
breakfast

Lack ofsleep

LifestylefasteatingDistribution of Health Age Notification
Education on how to interpret the resultsof health checkups
Strengthen on-site support for in-houseinsured staff
Enhance external health contact
and strengthen collaboration
Education to strengthen self-care ability
Reinforcement of secondary health checkup
visitsGlobal walking event held

Specific Action

Exerciseshortage

Examples of Actions to Solve Issues

PsychiatricMentaldisorderRecurrence

Blood
Glucose
level

▲3.0

Accompanying
supportHepaticfunction

UP

Assesscurrent
situation

Body surface

2026

Health Events Held by Worksites

Key to improving health literacy
Promote health and productivity management with the goal of continuing certification of"Certified Health & Productivity Management Outstanding Organization (White 500)"
Reselection as a Health & Productivity Stock

38 / 45

Conservation of the Global Environment

39 / 44

Partial Revision of Material Issues “Conservation of the
Global Environment"
14 Protection of the Global Environment

14 Conservation of the Global Environment

Major initiatives

Major initiatives

Reduce greenhouse gas emissions and increase
share of renewable energy in total electricity
consumption
Reduce use of water resources
Reduce final landfill disposal rate of industrial
waste

Realization of a decarbonized society• Reduce energy consumption by adopting high-efficiency equipment and improving
operation• Promotion of renewable energy electricity procurement• Examination and introduction of procurement of green electricity by physical PPA• Introduction of carbon neutral city gas• consider and introduce new technologies such as next-generation solar cells
Realization of a Water Recycling Society• Identification of reduction target by installation/analysis of flow meter• Reduce water resource use through efficient operation and new measures• Strengthening of wastewater control at in-house plants and research laboratories(Establishment of stricter effluent standards and implementation of whole effluent
toxicity tests)• Conduct ecotoxicity studies on late-stage development and marketed products anddisclose the results• Establishment of water-related risk assessment system and implementation ofengagement for important business partners
Realization of a society with recycling of resources• Recycling of waste materials• Material chemical recycling of plastics• Reduction in paper use• Thorough notification of segregation※ Revised major initiatives in response to the
update of mid- and long-term environmental Goals 40 / 45

Protecting Value

Conservation of the Global Environment

Material Issue

14

Recognizing that our business activities benefit from the environment and aiming to realize asustainable and affluent society, we have adopted the environmental vision, “ECO VISION 2050” andare striving to resolve environmental issues in view of the future in 2050

CO2

H2O

Realization of a Decarbonized Society
Realization of a Water Recycling Society
Realization of a Resource Recycling ociety

Toward the realization of ECO VISION 2050, we haveestablished 3 priority items and established medium- tolong-term targets. In addition, we have establishedannual targets and are advancing initiatives.
41 / 45

Protecting Value

Conservation of the Global Environment

Material Issue

14

Medium- to long-term environmental Targets

42 / 45

Protecting Value

Conservation of the Global Environment

Material Issue

14

Roadmap for Achieving a Decarbonized Society

43 / 45

Protecting Value

Conservation of the Global Environment

Material Issue

14

Biodiversity Conservation Initiatives
We are grasping the risks and opportunities related to biodiversity in our company's management in accordance with the LEAP
approach, and at the same time, we are making preparations for initiatives to conserve biodiversity as part of our business andaiming for a spontaneous resurgence by implementing biodiversity conservation activities that are unique to Ono PharmaceuticalCo., Ltd.
Locate(Discovery)
Contact with nature

Evaluate(Diagnosis)
Dependence andEffects

Minimizing negativerisk of ONO businesson biodiversity

Positive activities
for biodiversity thatONO can achieve

AssessRisks and
Opportunities

PrepareHandling andReportingYamaguchi Plant

Fujiyama Plant

 Goal formulation for biodiversity
 Employee participation in nature conservation activities Information disclosure aline with TNFD (from FY 2024)

Minase Research Institute44 / 45

External ESG Evaluation
Evaluation institution

FY 2021

FY 2022

FY 2023

DJSI

79/100 points
World Index

79/100 points
World Index

77/100 points

World Index

FTSE

Selected
4.2 points/5 points

Selected
4.3 points/5 points

Selected
4.5 points/5 points

MSCI

Selected
Score: A

Selected
Score: AA

Selected
Score: AA

Sustainalytics

27.7
21th/403 companies

25.9
25th/458 companies

ー

TOYO ECONOMIC CSR
Ranking

107th/ 1631 companies

102th/ 1353 companies

78th / 1714 companies

Nikkei
SDG management

Stars 4.0★★★★☆

Stars 4.0★★★★☆

Stars 4.0
★★★★☆

CDP

Climate change: A
Water: A

Climate change: A
Water: A

Climate change: A
Water: A

S & P carbon efficiency index

Selected
Decile ‘ 1 ’

Selected
Decile ‘ 1 ’

Selected
Decile ‘ 1 ’

SocialNikkei
smart work management

星4.0
★★★★☆

Stars 4.0★★★★☆

Stars 4.0★★★★☆

Diversity

MSCI-WINー

Selected
Score: 6.53

Selected
Score: 5.65

ESG
GeneralEnvironment

45 / 45

Dedicated to the Fight against Disease and Pain