Sustainability Report 2023

Corporate Philosophy

Basic Philosophy
Corporate philosophy of JCR Pharmaceuticals Co., Ltd. is“Contributing towards people’s healthcare
through pharmaceutical products.”
Under this philosophy, we aim to contribute to health improvementswith better treatment options as a pioneer company engaged
in research, development, manufacturingand marketing of biopharmaceuticals and regenerative medicine.

Sustainability Report 2023

Reliability

We strive to establish
a reliable company for
all stakeholders by actions
with high sense of duty
in addition to compliance.

Confidence

We continue our research anddevelopment from our own pointof view and provide high-quality
products and information
with confidence in the aim ofproviding pharmaceuticals
that are accepted worldwide.

Belief

We aim for further corporate
growth in the belief of“Think by oneself,
act by oneself”
under the basic philosophy.

Editorial Policy

JCR has reorganized its integrated report “JCR Report 2022” andprovided an explanation of its sustainability initiatives.
JCR Pharmaceuticals Co., Ltd. (JCR) has the importantmissions of tackling rare and intractable diseases with its
advanced biotechnologies, and researching, developing, andcreating innovative medicines in the areas of cell therapy,
regenerative medicine, and gene therapy. Mindful of thosemissions, JCR has launched its Midterm Business Plan for

FY2023-2027, “Reach Beyond, Together,” under which weare continuing to meet the challenge of doing what only JCR
can do for patients and their families. Through businessactivities based on its corporate philosophy, JCR aims tocreate sustainable corporate value, and believes that it isimportant to contribute to the development of a sustainable

society. For “Sustainability Report 2023,” JCR hasreorganized and edited its integrated report “JCR Report2023” in order to foster a full understanding of JCR’s
sustainability initiatives among a wide range of stakeholders.

Sustainablity Report 2023 Contents• Period covered
FY2022 (From April 1, 2022 to March 31, 2023)* This report also contains some information from FY2023.

1

Corporate Philosophy / Editorial Policy

38

History of Growth2

Top Message

39

Key Topics for FY2022• Organizations covered
JCR Group (JCR Pharmaceuticals Co., Ltd., consolidated
subsidiaries and equity method affiliates)* See explanatory notes for exceptions.

4

Midterm Business Plan for FY2023-2027

40

Consolidated Financial“Reach Beyond, Together”

and Non-Financial Highlights

14

Sustainability Management

17

Contributions in the Rare Diseases Arena

Society19

Environmental AwarenessCorporate Governance22

Contributing to Unmet Medical Needs

Environment

24

Human Resource Management

29

Quality Assurance and Stable Supply

30

Corporate Governance

42

Data

• Presentation of currency units
Numerical values are rounded down to the nearest whole number inthe speciﬁc unit, in principle.
However, numerical values presented in units of hundred millions of
yen are rounded up or down to the nearest hundred million yen.

Forward-Looking Statements“Sustainability Report 2023” contains forward-looking statementsthat are subject to known and unknown risks and uncertainties,
many of which are outside our control and are based on our
judgments derived from the information available to us at this time.
Our actual results could be materially different from those expressedin our forward-looking statements, due to factors and events that
include, but are not limited to, the following: a deterioration of
economic conditions, a change in the legal or governmental system,
a delay in launching a new product, impact on competitors’ pricing
and product strategies, a decline in marketing capabilities relating toour products, production difﬁculties or delays, an infringement of ourintellectual property rights, an adverse court decision in a signiﬁcantlawsuit and regulatory actions.

Sustainability Report 2023

1

Top Message

Our commitment and purpose
are firmly establishedin achieving social good.

2

Sustainability Report 2023

Under the Midterm Business Plan for FY2023-2027, “Reach Beyond, Together,” which was announced in May 2023,
we positioned sustainability measures as a key management priority, and have been promoting continuous measures
to realize a sustainable society in the core areas of Rare Diseases (RD), Environment (E), Society (S), and Corporate
Governance (G).
We recognize “Rare Diseases” as the arena that we can make our greatest contribution. In addition to developing
treatments for ultra-rare diseases having very few patients, and building new business models, we have also worked
to improve drug access. Moving forward, we will actively promote our values “what only JCR can do” to the society
and pledge to ensure no one will be left behind.

November 2023

Shin Ashida
Representative Director, Chairman,
President, CEO and COO

Sustainability Report 2023

3

Midterm Business Plan for FY2023-2027

Reach Beyond,
TogetherSince its founding in 1975, JCR has introduced pharmaceuticals featuring

operate the entire biopharmaceutical process, from research through to

new mechanisms available for the first time anywhere in the world, such as

manufacturing. To maximize this potential, and to provide even more

TEMCELL HS Inj. and IZCARGO , on the strength of its unique R&D andpatients and their families with “medicines that only JCR can provide,” wemanufacturing capabilities in areas other companies do not handle. Our

have formulated our Midterm Business Plan for FY2023-2027, “Reach

proprietary J-Brain Cargo ® drug discovery platform technology, which we

Beyond, Together.”®

®

have established and are focused on developing further, will enable us toprovide patients around the world with drugs that can be expected to haveour second foundation, while also providing basic information to help

significant benefits for diseases that were previously untreatable.

readers better understand JCR’s business activities through more detailed

JCR is now one of the few pharmaceutical companies in Japan that can

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Sustainability Report 2023

In this section, we will introduce our strategy for creating new value during

sidebars as appropriate.

Our goal is to become a research-oriented specialty pharma with global exposure,handing down to the next generation the spirit of challenge that has guided us since our founding.
Since its inception, JCR has continued to grow as a specialty pharma
by targeting the field of drugs for rare diseases 1, developing themwith proprietary biotechnologies, technologies for cell therapy andregenerative medicine, and gene therapy technologies.
During JCR’s Midterm Business Plan for FY2015-2019, “HIYAKU(Leap into the Future),” in February 2016 we launched TEMCELL ® HS
Inj., the first allogeneic regenerative medical product 2 in Japan.
During the Midterm Business Plan for FY2020-2022 “REVOLUTION”
that followed, we succeeded in the human clinical application of
J-Brain Cargo ®, the world’s first technology for delivering active

ingredients directly to the brain, as well as launching IZCARGO ®, arevolutionary new drug that is expected to improve central nervous
symptoms of lysosomal storage disorders 3 (LSDs), for which there
had been no effective treatment.
Under the Midterm Business Plan for FY2023-2027, “Reach
Beyond, Together,” we aim to become a research-oriented specialty
pharm with global exposure by handing down and further developing
these successes, taking on the challenge of using our innovative drug
creation platform technologies to create “medicines that can only bemade by JCR.”

1 Drugs for Rare Diseases

These are drugs used for
diseases with an extremely small
number of patients, defined inJapan as those intended for
fewer than 50,000 patients. While
about 7,000 rare diseases havebeen identified around the world,
it is estimated that approved
treatment methods exist for no
more than 5% of them.
2 Allogeneic Regenerative

Corporate Philosophy

Contributing towards people’s healthcare through pharmaceutical products.

Medical Products

Regenerative medical productsthat use cells other than thepatient’s own. Their advantages
include the ability to respond to

REVOLUTION

Reach
Beyond,TogetherHIYAKUFounding

Demonstrated research capabilities
to deliver innovation
Demonstrated biomanufacturing technologies
with high added-value
Built a stable business foundation

Research-oriented
specialty pharma
with global exposure

need for emergency treatment by
manufacturing and stocking
products in advance.
3 Lysosomal Storage

DisordersRare deceases in which a specific[Who JCR wants to be]
Be an ally to individuals withrare diseases, focusing on innovation“only JCR can provide.”

enzyme is either congenitally missing
or functionally deficient, resulting in
the accumulation of metabolic waste
which fails to dissolve and causing avariety of symptoms. It is thecollective name for a group of about

Create “medicines that only JCR can provide”
through innovative drug creation platform technologies

50 types of disease.
Reference
P.38 History of Growth

Team JCR

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5

Midterm Business Plan for FY2023-2027 “Reach Beyond, Together”

JCR will contribute to patients and their families around the world
by further reinforcing its strengths and working to maximize value.
Under the Midterm Business Plan for FY2023-2027, “Reach
Beyond, Together,” we will work toward achieving our vision for who
JCR wants to be, bringing together our foundational proprietary
R&D and manufacturing capabilities 1 in the pursuit of what only
JCR can provide to patients and their families, even in the case of
diseases with an extremely small number of patients. To do this, wewill marshall all capabilities of “Team JCR” at focusing on thefollowing five initiatives.
From a global perspective, JCR is still positioned as a biotech
company with proprietary technology, and we believe that, toachieve global growth during our second foundation, we should
invest in R&D to the extent our resources allow. In addition, since
profits may fluctuate significantly over the next five years due totiming differences, etc. in revenue from licensing, rather thanestablish quantitative guidance, we will determinedly invest inopportunities for growth.
Given the above, we recognize the importance of providing timely
information to investors and our shareholders, and will strive todisclose information promptly and with a high degree oftransparency.

1 Bringing Together R&D

and Manufacturing
Capabilities

JCR is one of the few companies
in Japan that can operate theentire biopharmaceutical process,from research through tomanufacturing. More than 70% of
our employees are highly skilled
personnel involved in R&D and in
production and quality assurance,
which are strengths we havepreserved from the time of ourFive Initiatives

1

Creation of innovative core technologies

2

Demonstrating global standard production capacity

3

Expansion of global quality assurance systemin terms of quality and quantity

4

Early launch of products for rare diseases

5

Human resource development to support growth

Rather than establish quantitative guidance,
we will determinedly invest in opportunities for growth through advancements in R&D,
create new innovation, and work to maximize value

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Sustainability Report 2023

founding. Research andproduction sites are concentrated
in the Kobe area to allow for
close collaboration acrossdivisions.

We will accelerate the development of innovative platform technologies
by exploring the potential of J-Brain Cargo®.
JCR is engaged in research aimed at expanding potential
applications for J-Brain Cargo ®1, its proprietary blood-brain barrier
penetration technology, to further increase its value. Research todate has made it possible to utilize J-Brain Cargo ® in a manner
appropriate for the substance being delivered. Optimizing themolecular structure of the substance to which J-Brain Cargo ® isapplied has allowed us to successfully fabricate molecules that are
more highly productive and can be delivered to the brain efficiently.
Under the Midterm Business Plan for FY2023-2027, “Reach
Beyond, Together,” we will not only apply J-Brain Cargo ® to LSD

drugs such as IZCARGO ®2, which we have already accomplished,
but will also take on the challenge of applying J-Brain Cargo ® tonucleic acid drugs, for which potential applications have beensuggested in a variety of disease areas. We will also accelerate
research to realize the next generation of J-Brain Cargo ®, aimed atbeing able to deliver drugs to tissues such as the eye, skeletal
muscle, cartilage and others, where conventional technologies facehurdles to drug delivery.

1 J-Brain Cargo®

A proprietary technology fordelivering drugs into the brain bypenetrating the blood-brain
barrier, a structure that exists inthe brain. For years, many
researchers and companies haveworked to develop similar
technology, but JCR is the first in
the world to succeed in its humanclinical application.
2 IZCARGO®

Endothelial cell

Transferrin receptor
(TfR)

J-B
pay rain Cloa
ads rgo ®
into tec
the hnobra logy
in
fer
r

ies

This drug is the world’s firstsuccessful human clinicalBrainapplication of a technology fordelivering active ingredients to thebrain. It was launched in Japan in
May 2021 as a treatment for MPS II.

BBB

Vasculature

Transferrin

J-Brain Cargo®-applied therapeutics
scFv

Selecting J-Brain Cargo® molecules
best suited for unique effector properties
Protein engineering expertise accumulated
since JCR’s founding

Anti-TfR
receptor antibody
Fab
VHH
Effector (enzyme)• Plentiful J-Brain Cargo® variations• Creation of biopharmaceuticals that are
difficult to produce

IZCARGO®, world’s first drug proven topenetrate the BBB to deliver ERT to
CNS. Launched in Japan in 2021.

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Midterm Business Plan for FY2023-2027 “Reach Beyond, Together”

Continuing to explore the potential for application of J-Brain Cargo® to a wide range ofmodalities through active promotion of collaboration with other companies.
Utilizing J-Brain Cargo ®, JCR is working with a development pipelineof more than 17 new drugs in the LSD field. However, the potentialof the J-Brain Cargo ® new drug platform technology is not limited
to this field. It can apply to a wide range of modalities 1 , and cantarget a variety of organs and diseases. We are actively moving
forward to collaborate with partners who have cutting-edge
technology in each of these fields.
In the field of LSDs, we are working with Takeda on the global
commercialization of JR-141 for the treatment of MPS II. In
October 2022, we also entered into a global development

agreement with MEDIPAL HOLDINGS for drugs to treat ultra-rarediseases. 2
In March 2023, we entered into an agreement with Alexion 3 forthe development of drugs for the treatment of neurodegenerative
diseases, and in May 2023, signed an agreement with Angelini
Pharma 4 to develop biological products for epilepsy. Goingforward, JCR will continue to explore further partnerships andaccelerate these efforts with a view to the future.

1 Modalities

Treatment methods including
small molecule pharmaceuticals,
enzymes, antibody delivery,
oligonucleotide delivery, celltherapy, gene therapy and others.
2 Ultra-rare Diseases

Rare diseases with an extremely
small number of patients, definedby the National Institutes ofBiomedical Innovation, Health

Target Organs

J-Brain Cargo®

J-XXX CargoJ-YYY Cargo

Typical Examples of Target Diseases

Brain

Lysosomal
Storage Disorder

Eye

Neurodegenerative
Disease

SkeletalmuscleOcular Disease

Cartilage

Bone Disease

Other

Muscular Disease

and Nutrition as those diseases
with fewer than 1,000 patients.
3 Alexion

Founded in the U.S. in 1992,
Alexion is a global developer ofbiologics involved in R&D,
manufacturing and sales of drugs
for rare diseases.
4 Angelini Pharma

An Italian global pharmaceuticalcompany with nearly 100 years ofhistory, focused on R&D andcommercialization of drugs in thefield of the central nervous
system.

Approval of IZCARGO® (Japan)

２０２０

２０２１
IZCARGO® partnership with Takeda

JBC partnership with Sumitomo Pharma (2015)8

Sustainability Report 2023

Gene therapy partnershipwith Takeda

JBC partnership with Alexion
and Angelini Pharma

２０２２Ultra-rare diseases partnershipwith MEDIPAL HOLDINGS

２０２３

We will further reinforce our strengths in manufacturing to build a global supply chain capableof providing a stable supply in any situation.
Since its founding, JCR has taken manufacturing as its strength,and for more than 15 years has developed manufacturingexperience drawing on single-use technology 1 to build amanufacturing and quality assurance system that enables thestable supply of high-quality biopharmaceuticals. We currently
have five production sites, including the new API plant, Kobe
Science Park Center 2 , which was completed in November 2022.
To expedite global clinical trials of multiple development
products, in July 2022 we moved to strengthen our relationshipwith Mycenax 3 , a Taiwanese company with an establishedreputation as a contract manufacturing and development firm forbiopharmaceuticals.
Under the Midterm Business Plan for FY2023-2027, “Reach
Beyond, Together,” we plan for over $300 million in capital
expenditures and investments in contract development andmanufacturing organizations (CDMOs) as we work to further
expand supply capacity. We are also working to build a global
supply chain capable of providing a stable supply even in
emergencies such as natural disasters and pandemics.

1 Single-use Technology

Technology that allows for theefficient production of small lotsof many different drugs withsingle-use culture vessels using
disposable plastic bags.
2 Kobe Science Park Center

A new API plant that meets therequirements of the FY2020 State ofEmergency Vaccine Production
System Improvement Project by the
Ministry of Health, Labour and• Over $300m CAPEX and investment in CDMOs, leading to supply expansion.

Welfare (MHLW). Equipped with four
2,000 L single-use culture vessels,
this plant will secure contract
production systems for vaccines and• Constructing a resilient global supply chain for emergencies.

other products in an emergency, andwill greatly contribute tostrengthening manufacturing capacity
for JCR’s own products.

2023

2024

2025

2026

CMC Research
Process Development

Intensive investment in rare diseases candidates

API

Full-scale operation of 2000L x 8 single use technology line2027

3 Mycenax

A contract manufacturing anddevelopment company
specializing inbiopharmaceuticals, founded in
2001, with a track record in avariety of global development

Preparation

Construction of new fill-finish plant with lyophilisation machine

projects, including in recombinant
proteins, enzymes, antibodies,
antibody drug conjugates, andCMO

Utilization of CMOs, including Mycenax

Logistics

Construction of supply network, including facility in Luxembourg

gene and cell therapies.

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9

Midterm Business Plan for FY2023-2027 “Reach Beyond, Together”

JCR aims to launch clinical trials of five LSD therapeutics during the termof its Midterm Business Plan for FY2023-2027.
Utilizing its proprietary J-Brain Cargo ® blood-brain barrier
penetration technology, JCR is working on the development of
more than 17 new drugs in the field of LSDs, including global
clinical trials 1 of JR-141 and JR-171. Many of these are currently
in the basic research and preclinical phase.
During the term of its Midterm Business Plan for FY2023-2027,“Reach Beyond, Together,” JCR aims to enter clinical trials for fiveproducts, including JR-441, JR-446, JR-479, JR-471, and JR-194,
accelerating efforts in candidates for Krabbe disease. Global
Phase I/II clinical trials for JR-441 were launched in October 2023.

Among these candidates, JR-471 and JR194 are indicated forfucosidosis and Batten disease, respectively, both of which areultra-rare diseases with an extremely small number of patientsaround the world. In dealing with these kinds of diseases, in fields
large corporations may find it difficult to enter, JCR considers it its
mission to deliver “medicines that can only be made by JCR,” andaims to commercialize them globally through collaboration with its
partners.

1 Global Clinical Trials

Clinical trials in which medical
institutions in multiple countries orregions participate, and which
proceed simultaneously based oncommon clinical trial protocols,
with the aim of developing andgaining approval for new drugs
on a global scale. This has theadvantage of making it easier togather test subjects than if eachcountry were to conduct their

Basic Research
JR-194(Batten disease type I)

Krabbe disease
GM1
gangliosidosis
CLN2(Batten disease type II)

Gaucher diseaseα-Mannosidosis
Niemann-Pick

Preclinical

Clinical(Phase I/II)

JR-446

JR-171

JR-162

JR-441*MPS IIIB(Sanfilippo B syndrome)

Pompe disease

JR-443Clinical(Phase III)MPS I
(Hurler syndrome, etc.)

JR-141MPS II(Hunter syndrome)trials individually, leading to faster

Review Period

Approved
JR-141MPS II(Hunter syndrome)

MPS IIIA(Sanfilippo A syndrome)

MPS VII(Sly syndrome)JR-479GM2 gangliosidosis(Tay-Sachs, Sandhoff disease)

JR-471Aiming to begin clinical trials for five items(Candidates) JR-441*, JR-446, JR-479, JR-471, JR-194, Krabbe disease

Fucosidosis

Metachromatic
leukodystrophy
Galactosialidosis

As of November 2023
*At the preclinical development stage as of the announcement of the Midterm Business Plan for FY2023-2027

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Sustainability Report 2023

development of drugs for rarediseases.

JCR will advance investments in human capital, reinforce the collective strength of “Team JCR,”
and establish a human resources strategy that will contribute to enhancing corporate value.
Based on its conviction that “Team JCR” is the source of its own
value, JCR has set out three main pillars under its Midterm
Business Plan for FY2023-2027, “Reach Beyond, Together,” forestablishing a human resources strategy that will contribute toenhancing corporate value. These are: construction of a dynamic
human resource portfolio that will help to accomplish the strategy;
development and organizational permeation of diversity andinclusion; and activation of individuals and organizations, andpromotion of improvements to engagement.
We see the development and securing of human resources who
can contribute to the enhancement of corporate value as central to
our investment in human capital. Going forward, we will strive toenhance programs that contribute to the development of ourhuman resources portfolio and the advancement of human capitalmanagement, including the JCR Academy, 1 a program to develop
the next generation of global leaders, as well as training programs
to improve language skills.
We will also formulate an image of who we want our people tobecome and a description of our optimal corporate culture. As amechanism for realizing these goals, we will build a humanresources management framework consisting of four
sub-frameworks, including human resource management,
evaluation of contribution, contribution-based wage framework,and human resource development.

1 JCR Academy

The JCR Academy is an initiative
launched in FY2022 to develop
next-generation leaders who haveacquired the skills to perform ona global level. The objective is tooffer a practical program whereparticipants can gain the soft
skills needed in their roles as
global leaders, including
communication, project
management, leadership, andother abilities.

Build a human resource management framework to realize the image of who we want our people to become• Designing a mechanism for performance evaluation centered on contribution• Establishing a perspective for evaluating efforts to tackle advanced issues

Human Resources
Management
Framework

Evaluation
Framework
for Contribution• Job responsibilities and various status settings that allow for
medium-term career development• Introduction of frameworks for diverse roles that take theorganizational mission into account

Who We Want Our People to Become

Be the doer.

Reference
P.24 Human Resource Management

Human Resources
Development
Framework

Contribution-Based
Wage Payment
Framework• Wage system emphasizing role and contribution, upgraded from a wage
system based on seniority and position• Wage system that considers employee work-life balance• Introduction of mechanisms to promote career autonomy• Deepening of compliance program• Strengthening of programs reflecting a diversity management
perspective as a result of globalization

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Midterm Business Plan for FY2023-2027 “Reach Beyond, Together”

Through business activities based on our corporate philosophy,
we will contribute to achieving a sustainable society that leaves no one behind.
JCR aims to realize sustainability through its business activities
founded on Rare Diseases, the Environment, Society, andCorporate Governance.
Rare diseases, in particular, relate closely to JCR’s businessactivities, and we see this as one area in which JCR can truly
contribute. We are working to enhance initiatives such as thedevelopment of drugs for ultra-rare diseases, and construction of
new business models, as well as efforts to improve access to
drugs (Named Patient Supply 1 ).

With regards to the Environment, JCR considers theenvironmental impact of its business activity as a risk factor that
could have a long-term impact on business and society. We willthus work to implement environmentally friendly businesspractices, such as reducing CO 2 emissions and making effective
use of water resources, while also expanding information
disclosure in line with the recommendations of the Task Force on
Climate-Related Financial Disclosure (TCFD) as a response to
climate change.

1 Named Patient Supply

A system under which
manufacturing and sales
companies individually provide
drugs to physicians seeking touse pre-approval drugs after firstregistering their patients. In March
2023, JCR began a program tosupply IZCARGO® in response to
the need for access to drugs incountries where they have not yet
been approved.

Ideal state of mind

Achieve sustainability through business activities based on RD-E-S-G

Rare Diseases• Develop drugs for ultra-rare diseases and construction of new business models• Make efforts to improve access to medicines (Named Patient Supply) to deliver
innovative medicines to people around the world

Environment

12Society• Investigate and implement measures to reduce
environmental impact through business activities• Address the challenge of unmet medical
needs by creating platform technologies• Promote environmentally friendly procurement on
the premise of ensuring the quality and stablesupply of pharmaceuticals• Develop human resources so that eachmember of “Team JCR” can shine in theirown station

Sustainability Report 2023

Corporate
Governance• Pursue governance in line with theCompany’s growth• Ensure thorough compliance and strengthenrisk management

Be an ally to individuals with rare diseases,
focusing on innovation “only JCR can provide.”

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13

Sustainability Management

Basic Approach to Sustainability
Since its inception in 1975, JCR has sought to create
groundbreaking therapeutics that respond to unmet
medical needs, particularly in the rare disease field,
under its corporate philosophy of “Contributing
towards people’s healthcare through pharmaceuticalproducts.” To this end, we have been harnessing
forward-looking biotechnologies, as well as
technologies for cell therapy and regenerative
medicine.
The global environment and conditions and issues
facing society have been changing year by year, but
JCR believes that it is crucial to create sustained
corporate value through its business activities as apharmaceutical manufacturer and contribute to thedevelopment of a sustainable society, and is
implementing activities in the core areas of Rare
Diseases, Environment, Society, and Corporate
Governance. Rare Diseases, in particular, are closely
related to JCR’s business activities and are a domain
to which JCR can especially contribute. In addition todeveloping treatments for ultra-rare diseases andbuilding new business models, JCR has also worked to
improve access to medicines. We will proactively
engage in things that only JCR can provide even for
ultra-rare diseases where there are only few patients
as we aim to achieve a society where no one will beleft behind.

MESSAGEIn the Midterm Business Plan for FY2023-2027 “Reach Beyond, Together,” which was announced in May 2023, JCR set out its“ideal state of mind:” to achieve sustainability through business activities based on Rare Diseases, Environment, Society andCorporate Governance. JCR believes that its mission is to harness its R&D and manufacturing capabilities to deliver new treatment
opportunities to patients who are living with rare or ultra-rare diseases and their families around the world.
“Team JCR” shares this mission, and its business activities and beliefs are aligned with the spirit of the Sustainable Development
Goals (SDGs) of “no one will be left behind.” We are committed to establishing a production system that ensures a stable supply ofhigh-quality pharmaceuticals with consideration for the environment and to defining KPIs that must be addressed for JCR tocontinue sustainable growth. By each employee taking these challenges as their own, we will pursue the realization of asustainable global society. Because we seek to continuously address the voices of patients and their families around the world, we
will realize sustainability in the manner unique to JCR, with a view to remaining a company that is chosen by all people involved
with JCR and its diverse spectrum of stakeholders.

Toru Ashida

Head of Sustainability

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Sustainability Report 2023

Sustainability Management

Structure for Promoting Sustainability
In July 2022, JCR established the Sustainability
Advisory Committee, Sustainability Committee andEnvironmental Committee to enable in-depth
discussions and formulating strategies in closealignment with management in response to theever-changing social and business environment andchallenges surrounding JCR. JCR will continue to work
as one team, driven by a sense of purpose in the raredisease field, to pursue sustainability in the manner
unique to JCR.

Sustainability Advisory Committee
The members of this Committee are Internal Directors, Independent Outside Directors, and Corporate Officers.
The Committee provides feedback on matters presented to the Board of Directors by the Sustainability Committee.

Sustainability Committee
Chaired by the director in charge of sustainability, members will be employees appointed from each business division. This Committee
will identify material issues, discuss and propose ESG-related initiatives, monitor progress, and report findings to the Board of Directors.

Environmental Committee
Members will be Internal Directors and employees appointed from each business division. They will consider the environmental impact
of business activities as a long-term risk factor affecting business and society, and practice environmentally friendly business activities.

Core Sustainability Initiatives

RD

Rare Diseases

E

Environment

S

SocietyG

Corporate Governance• Development of drugs for ultra-rare diseases and construction of new business models• Efforts to improve access to medicines (Named Patient Supply) to deliver innovative medicines
to people around the world• Investigation and implementation of measures to reduce environmental impact through business activities• Promote environmentally friendly procurement on the premise of ensuring the quality
and stable supply of pharmaceuticals• Address the challenge of unmet medical needs by creating platform technologies• Develop human resources so that each member of “Team JCR” can shine in their own station• Pursue governance in line with the Company’s growth• Ensure thorough compliance and strengthen risk management

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15

Sustainability Management

Addressing the SDGs
JCR believes that partnership and cooperation with theinternational community are the most importantpriorities for realizing sustainability. JCR proactively
conducts sustainability initiatives, in keeping with thespirit of the SDGs of “no one will be left behind.” Itshares with and returns to a wide range ofstakeholders the achievements of these efforts.

Process for Identifying Materiality(Material Issues)
JCR believes that it is crucial to continue pursuing thesustained creation of corporate value through its
business activities, thereby contributing to asustainable society. To that end, JCR identifies themateriality issues it should address through theprocess outlined to the right.

1

2

3

4

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Sustainability Report 2023

List materiality issues
Derive materiality issues by referring to international guidelines, principles and frameworks, as well as conditions and challenges facedby the pharmaceutical industry, and from the perspectives of what JCR is uniquely capable of doing and what it should be doing.

Assess materiality
Assess the importance of the materiality issues derived in 1. from the perspective of their impact on society and theenvironment as well as their impact on JCR’s business.

Assign priority to materiality issues
Based on the assessment in 2., organize materiality issues into categories and assign priority to highly important materiality issues for
JCR from a long-term perspective, in light of JCR’s corporate philosophy, purpose, business activities, and Midterm Business Plan.

Determine materiality
The issues identified in 3. are discussed and approved by the Board of Directors and are established as JCR’s material issues. The identified
materiality is explained and shared internally so that each employee can take ownership of each issue, and further enhancements are made.
In addition, specific materiality issues are shared with a wide range of stakeholders through disclosure via JCR’s website and other channels.

Contributions in the Rare Diseases ArenaRD

Rare Diseases

RARE DISEASE Project
The RARE DISEASE Project is a cross-sectional
internal awareness-raising project, with “What JCR can
do for rare diseases” as its motto. We collectinformation and share it internally to deepen
employees’ understanding of rare diseases. We also
support and cooperate with patient groups andsupport organizations that help people with rarediseases. We stipulate a two-year appointment without
fixed membership to allow as many people as possible
to participate.
As awareness-raising in-house activities, we promote
our employees to wear official
badges for Rare Disease Day(RDD), conduct fundraising
activities, global
consciousness-raising
activities for MPS AwarenessDay, hold open public lecturesand in-house lectures, anddistribute participants’ reports
about the events organized bypatient groups.
Although the COVID-19 pandemic continued throughFY2022, patient groups gradually resumed in-person
meetings. Several RARE DISEASE Project members
participated in a social event and joint symposium of
the Japan MPS Patient and Family Group held in Tokyoin August 2022. We also welcomed students from

Kobe Kaisei Girls’ Senior High School, Osaka Meisei
Gakuen Senior High School, and National Institute ofTechnology, Tsuruoka College in November 2022 for
an online RDD high school study tour (JCR internship).
As a company aiming to become “a global specialty
pharma in the rare disease arena,” JCR believes that it
is extremely important to provide opportunities foreach and every employee to learn what patients aregoing through. As a new initiative in FY2022, Given:
Ima koko ni aru Shiawase (Given: The happiness of
being here now), a documentary movie featuring
patients with rare diseases such as MPS and theirfamilies, was made available to employees throughon-demand streaming from August to September
2022. Many of our employees viewed the documentaryand gave many comments and feedback about it.
JCR will continue to carry out not only research anddevelopment focused on orphan drugs, but also
activities that lead to broad-based support for patientsand their families on a global basis.

MPS Awareness Day
In FY2021, the RARE DISEASE Project was kicked off
with its first global awareness-raising activity for MPS
Awareness Day on May 15, sponsored by the MPS
Society, a support group for patients with MPS in the
United States.
JCR decided to make this a company project after a
subsidiary employee made a proposal that JCR think
about what it could do for MPS Awareness Day.
In FY2022, photos in the theme color purple and themessage of MPS awareness were solicited
Company-wide, and they were distributed through theinternal bulletin board in a format that could be
downloaded as posters at each business location. We
also donated funds to the National MPS Society inproportion to the number of photos collected. In
addition, employees wore hand-made purple ribbon
badges and newsletters related to raising awareness of
MPS were distributed through the internal e-bulletinboard.

MPS Awareness Day Poster (for in-house awareness-raising)Sustainability Report 2023

17

Contributions in the Rare Diseases Arena

Rare Disease Day

In-House RDD Awareness-Raising Activities

From FY2015, JCR has been a supporter of RDD. There
are patients suffering from rare and intractable diseases
around the world, but the total number of these patientsis small, and the disease mechanisms are complicated.
Therefore, almost no progress has been made in researchand development of therapeutics and methods ofdiagnoses for some diseases. RDD activities began in
Sweden in 2008 with the aim of improving the quality oflife of patients with rare andintractable diseases throughbetter diagnoses and treatments.
It is hoped that these activities
will create a bridge between
patients and society, and help toincrease awareness of rare andintractable diseases.

To commemorate RDD, JCR encourages employees towear official RDD badges and raises funds in-house in
February every year.
Moreover, Japanese professional golfer Masahiro
Kawamura, Japanese professional tennis player
Masamichi Imamura, and Japanese professional tennis
player Shinji Hazawa have been appointed as RDD
Japan ambassadors by RDD Japan secretariat officeand they have continued awareness-raising activities
worldwide by placing the RDD official logo mark on
their clothing, caps, bags, etc., and by distributing
postcards and pin badges during domestic andinternational tours. JCR signed a sponsor agreementwith Mr. Kawamura in October 2019, Mr. Imamura in
April 2021 and Mr. Hazawa in April 2022.

MESSAGEI joined the RARE DISEASE Project because I wanted to hear directly from patients and their families, to reconsider the question“what can I do for them?” and to put what I learned into action. This is the second year of my appointment to the project. I’ ve had
several opportunities to speak with patients and hear their views firsthand through sessions and other events. By engaging withthe patients, I was able to feel their daily suffering in the absence of effective treatment options, as well as their strong
determination to fight their disease and stay alive, and their yearning for the creation of new medicines.
As a clinical development professional, I want to truly understand “what patients are suffering from and what they are thinking”
and apply this knowledge to the development of clinical trial design. Furthermore, using scientific data from clinical trials and otherstudies, I would like to raise awareness of the fact that many people are suffering from diseases all over the world, as well as
convey the voices of patients and their families, through the process of applying for new drug approval.

Marin Noda

Domestic Project Coordination Group, Domestic Development Unit, Development Division

18

Sustainability Report 2023

Environmental AwarenessE

1. Recycling industrial waste (waste plastics)

Environment

Initiatives for Environmental Conservation
JCR has been taking a wide range of steps to mitigate
its environmental impact, including reducing CO 2
emissions and effectively using water resources. For
example, we have worked to transition to LED lighting
at all company facilities and shift all our company cars
to hybrid cars, electric vehicles, andhydrogen-powered cars. In addition, we havepromoted measures such as reducing water use at
production sites, along with adopting single-use
bioreactors to ensure efficient use of manufacturing
facilities.
In July 2022, JCR established a new Environmental
Committee to further strengthen its environmental
initiatives, including efforts toward carbon neutrality.
The Committee is responsible for setting basic policies
involving the environment and for identifying material
issues, and will establish and manage progress withtargets based on those issues
The Kobe Science Park Center, JCR’s new
production site completed in November 2022, makes
proactive use of solar power generation and othertypes of renewable energy. In addition, we are working
to contribute to reducing global environmental impact
by recycling industrial waste (waste plastics) generated
by our production sites through material recycling,
thermal recycling, and conversion into recycled solid
fuel.

Since FY2022, we have been working to select global
environmentally friendly waste collection, transport,
and intermediate treatment operators, and tostrengthen our understanding and sorting of different
types of industrial waste. This is intended to optimize
disposal methods and monitor the volume of waste
plastics disposed, as issues in recycling and reuse ofindustrial waste (waste plastics) and improving
recycling rates.
As part of future efforts, in FY2023 we will actively
promote material recycling of waste plastics
discharged by our production sites. We are working tohelp mitigate the global environmental burden by
reducing CO 2 emissions, conserving depletable
resources, and extending the life of landfills throughthermal recycling of waste plastics for which material
recycling is difficult, and by converting them into
recycled solid fuels—alternatives to fossil fuels—
including RPF *1 (solid fuel made from waste plastics
and paper waste) and fluff *2 (shredded soft plastic).
*1 Refuse Paper & Plastic Fuel (RPF): A
high-grade solid fuel made primarily fromwaste plastics, with a calorific value
comparable to coal. It not only offers
excellent handling and storage properties,
but also advantages in terms of economy
and CO 2 reduction.
*2 Fluff fuel: Fluff fuel is produced by sortingand shredding waste plastics. Comparedto RPF fuel, derived from general waste
plastic, fluff fuel is characterized by a low
environmental impact since it requires noprocess for adding heat.

RPF

Fluff fuel2. Consideration for biodiversity and proper
management of chemicals and hazardous
substances in wastewater management
In order to minimize our impact on biodiversity, we
appropriately manage methods for handling and disposing ofchemical substances used in R&D and manufacturing basedon risk assessments. In addition, sewage containing chemical
substances and hazardous materials generated at eachproduction site is properly treated via the wastewater
treatment system described below. We then monitor theeffluent to ensure it is discharged into the public sewer
system at levels at or below the standards required by law.
Wastewater treatment tank using yeast (new production site)
Because drug substance manufacturing often generates
highly concentrated BOD, we have installed a system thatuses yeast to decompose the BOD and includes compliancewith wastewater regulations. Chemical dosing via acontinuous neutralization
device capable of neutralizing
manufacturing wastewater isalso used to adjust pH values
to within values permitted bywastewater regulations; thewastewater is then discharged
Wastewater treatment tankinto the public sewer system.
Virus inactivation equipment (new production site)
We have installed a system to inactivate microorganisms,
viruses, etc. contained in wastewater from the process ofmanufacturing biopharmaceuticals and other products. This
process ensures that sewage
is disinfected and discharged
into the public sewer systemwith consideration for theenvironment.
Virus inactivation treatment system

Sustainability Report 2023

19

Environmental Awareness3. Consideration for the surrounding residential
environment at the new production site

At the Kobe Science Park Center, manufacturing facilities
and equipment that generate noise and wastewater odors,
etc., are located on the factory side of the property, while theoffice building islocated on theresidential side inconsideration of theneed to preserve
the residential
environment for thepeople who live
Kobe Science Park Centernear the factory.

4. Other initiatives• We use rental uniforms made of recycled materials, andused uniforms are collected and recycled as raw material,
contributing to a reduction in the use of petroleum-derived
raw materials.
• We are reducing the use of copy paper by going paperless(digitizing documents and records related to GMP). We also
use paper products with a FSC certification mark (switch
completed in some departments, with plans for
Company-wide rollout going forward).
• We use 100% recycled toilet paper (with flushable coresand wrappers). (Switch completed in some departments,
with plans for Company-wide rollout going forward.)• We are switching electric cars used as company vehicles
to long-range models.

Electric vehicle20

Sustainability Report 2023

Energy Use

Water Resources

Total energy use has increased since heat source
equipment went into full-scale operation at our
research facilities around May 2022, and the new
production site began operation in the latter half of
FY2022.

In FY2021, we saw a partial reduction in the use ofwater resources thanks in part to reductions in theamount of water used in research and production
processes and efforts such as promoting the recovery
and reuse of exhaust steam. However, water use
increased temporarily due to growth in manufacturingbusiness results (manufacturing of stock solution for
COVID-19 vaccine). In FY2022, water use increased
significantly due to full-scale operation of heat source
equipment at the research facilities and other factors.
Among production sites, operation of a new plantbrought an increase in water use, but it decreased
overall with the end of contract manufacturing stock
solution for COVID-19 vaccine.
All water used in research and production activities istreated appropriately on site before being discharged.

(ThousandkWh)20,000(Thousandm³)

Electricity use

10,0000

Gas use

1,500

750

2021

2022 2023 forecast

Research facilities

0

(FY)

2021

2022 2023 forecast(FY)

Production sites*Data from production sites and research facilities of JCR Pharmaceuticals Co., Ltd.

At the Kobe Science Park Center, we have installed
588 solar panels on the roof of the office building, anduse renewable energy in staff spaces, the cafeteria,
and elsewhere. In accordance with recommendations
from the Task Force on Climate-Related Financial
Disclosures (TCFD), we have been disclosing
information on total energy use since FY2021.

Water Use(m3)

80,000Research facilities
Production sites

52,10940,000

0

2018

2019

2020

2021

20２2

(FY)

*Data from production sites and research facilities of JCR Pharmaceuticals Co., Ltd.

Solar power generation panels that have been installed over the entire roofof the Kobe Science Park Center office building

Environmental AwarenessInformation Disclosure in Accordance with the TCFD
JCR will deliberate on matters such as establishingmedium- to long-term GHG reduction targets in light ofits business plans and initiatives such as the GHG
reduction targets set by various companies, with theaim of keeping the rise in temperatures that has
occurred since the industrial revolution below 1.5°C.
JCR will continue to handle the analysis of risks andinformation disclosure related to climate change inaccordance with TCFD recommendations. Scope 3
emissions represented about 90% of GHG emissions
overall in FY2022. For Category 1, which represents
half of that amount, we plan to work with suppliers toprioritize reviewing and implementing measures toreduce those emissions.

[Governance][Risk Management]

JCR is working to strengthen governance initiatives
related to climate change. Policies regarding activities
and specific contents are deliberated by the
Sustainability Committee, and the Board of Directors
make decisions on them, taking into consideration theopinions of the Sustainability Advisory Committee.

JCR is considering risk identification, assessment,
management, and enterprise risk management
integration processes, and will disclose information on
this moving forward.

[Strategy]
Regarding physical and transition risks andopportunities related to climate change, JCR plans to
identify those that affect operations to a high degree
as important risks and opportunities after assessing
the significance of their short-, medium-, andlong-term impact on business, strategy, and finances.

FY2022 GHG Emissions by Scope

Scope of calculation

Scope 1, 2, and 3 applied to JCR Pharmaceuticals Co., Ltd.

Scope 1

In addition to the combustion of fossil fuels such as gasoline, freon̶which originates from industrial air
conditioners̶and CO2 emissions derived from CO2 canisters are also included in the calculations
Calculated using both market standards and location standards. Coeﬃcients are in compliance with the Act on Promotion of Global Warming Countermeasures.

Scope 3—Category 1 (Purchased products and services)

Calculated based on purchase and sales data. Coeﬃcients are referenced from the Ministry of the Environment s Input Output Table Database v3.2

Category 2 (Capital goods)

Calculated based on the increased amount of noncurrent assets. Coeﬃcients are referenced from the Ministry of the Environment s Input Output Table Database v3.2

Category 3 (Fuel and energy-related
activities not included in Scope 1 and 2)

Calculated based on energy consumption in Scope 1 and 2. Coefficients are referenced from the Ministryof the Environment’s Database v3.2 and IDEA

Category 4(Shipping, Transport (Upstream))Calculated using the mileage method for shipping from suppliers to the Company s locations, and calculated using the ton-kilometer method for shippingfrom the Company s distribution center to a distributor. Coeﬃcients under the mileage method are referenced from the home page of the Japan Trucking
Association, while coeﬃcients under the ton-kilometer method are referenced from the Ministry of the Environment s Input Output Table Database v3.2

Category 5(Waste produced by business)

Amounts of generated waste are calculated according to type. General business-type waste is estimated based on number of employees and statistical
data from the Ministry of the Environment. Coeﬃcients are referenced from the Ministry of the Environment s Input Output Table Database v3.2

Category 6 (Business trips)

79,466 tons

Calculated based on number of employees. Coeﬃcients are referenced from the Ministry of the Environment s Input Output Table Database v3.2

Category 7 (Employee commutes)

Calculated based on commuting distance. Coeﬃcients are referenced from IDEA

Category 8 (Lease assets (Upstream))

Assets leased by the Company itself are included in the calculations of Scope 1 and 2

Indirect emissions other than those from Scope 1 and Scope 2(emissions from other companies associated with business activities)

Category 9(Shipping, Transport (Downstream))Calculated using the ton-kilometer method for shipping from the Company s distribution center to clinics, etc. Coeﬃcients
under the ton-kilometer method are referenced from the Ministry of the Environment s Input Output Table Database v3.2

Category 10 (Manufacturing of sold products)(Currently not calculated because it is diﬃcult to assess and estimate the amount of activity by downstream customers)

Category 11 (Use of sold products)(Excluded from scope because the ﬁnal products are pharmaceuticals, and no energy is used)

Category 12 (Disposal of sold products)

Calculated based on product shipment amounts. It is assumed that the products are completely consumed, and that only the glass vials are disposed of.

Category 13 (Leased assets (Downstream))(Excluded from scope because there are no leased assets that are owned by the Company and leased to other companies)

Category 14 (Franchises)(Excluded from scope because the Company does not have franchises)

Category 15 (Investment)(Excluded from scope because investment is not the objective)

3,315 tons

Direct greenhouse gas emissions from an organization itself(fuel combustion, operational processes)

Scope 2

5,266

tons

Indirect emissions associated with use of electricity,heat or steam supplied by another company• Market standard 5,266 tons
• Location standard 7,670 tons

FY2022
GHG emissions
in the entire
supply chain

tons

JCR will consider climate change performance indicesgoing forward. In addition, our Scope 1, 2, and 3(some categories) GHG emissions calculated
according to the GHG Protocol, an international
calculation standard, are as follows.

Scope 2

Scope 1

88,048[Metrics and Targets]

Scope 3• Category 1

38,635 tons

• Category 5

186 tons• Category 2

39,094 tons

• Category 6

115 tons• Category 3

1,155 tons

• Category 7

153 tons• Category 4

127 tons• Category 8-15

0 tonsSustainability Report 2023

21

Contributing to Unmet Medical Needs

S

Society

Basic Concept
With the aim of contributing to the unmet medical
needs of patients and their families around the world,
JCR supports medical research and the developmentof young researchers; provides humanitarianassistance in medically underserved countries; offers
aid for the development of maternal and child healthcare; and supports children undergoing medical careand their families. Further, in an effort to address theworld’s medical needs as quickly as possible, we areworking to disseminate the latest developments andexpand access to pharmaceuticals.
Through such activities, we aim for a society in which
no one will be left behind and the sustainable growthof JCR.

Support for the“International Medical Research Foundation”
JCR supports the activities of the “International
Medical Research Foundation,” which helps to foster
medical researchers who can succeed internationallythrough programs such as study abroad grants. Since
its establishment in April 2019, the International
Medical Research Foundation has carried out a study
abroad grant program for young medical researchers
as well as a program to provide grants to international
symposiums on medical research that are held both inJapan and overseas.

22

Sustainability Report 2023

In the past few years, the declining international
competitiveness of Japan’s scientific research has
become a serious problem. For this reason, efforts to
support study abroad opportunities involving researchat leading overseas institutions and efforts to support
international symposiums that invite internationallyrecognized foreign researchers at the forefront of theirresearch fields carry tremendous significance.
Accordingly, JCR endorses the activities of theInternational Medical Research Foundation.

Support for the Swiss Nonproﬁt Foundation“Global Foundation for Life Sciences”
As part of its efforts to contribute to global health, JCR
supports the “Global Foundation for Life Sciences,” anonproﬁt foundation established in Switzerland in
1999. This foundation supports the advancement of life
sciences, provides humanitarian assistance to various
medically underprivileged countries and also provides
support for the development of young researchers.
One example of the humanitarian assistanceprovided by the foundation is its support for theactivities of a group of volunteer doctors formed totreat women suffering from obstetric ﬁstula in West
Africa. Obstetric ﬁstula is a condition where a hole isformed in the birth canal or surrounding tissues due toinadequate medical care in cases where under-aged
women become pregnant and give birth, among othersituations, causing chronic fecal and urinary
incontinence. The number of ﬁstula patients isapproximately 2 million worldwide with about 100,000©fistula group

women newly diagnosed with the condition every year.
The nature of the symptoms means that women withobstetric fistula face difficulties in their daily lives, inaddition to some reported cases of harm from social
discrimination and exclusion. The group of volunteer
doctors regularly visits a hospital in Benin, a country inWest Africa, and undertakes activities to eradicate
obstetric ﬁstula, performs surgeries on patients, andprovides technical instruction to local doctors. JCR
contributes to people’s health and the advancement of
medical care through its support for the foundation.

Contributing to Unmet Medical Needs

Donations to Kyoto University(Third-Party Allotment of Treasury Stock)
JCR aims to provide financial support to enable young
researchers involved in life science or basic research aswell as cancer immunotherapy research to concentrateon their studies, donating through third-party allotmentof treasury stock to two funds established within Kyoto
University, the Tasuku Honjo “Yuh-shi” Fund and theCancer Immunotherapy Research Fund. By donating tothese two funds, we support the development ofchallenging and creative basic research that could
cause a paradigm shift in the field of life science andresearch aiming at realizing full cancer recovery, which
is a long-cherished wish of humankind.

Support for the “Award for Promotion ofMaternal Child Health”
JCR supports the “Award for Promotion of MaternalChild Health” (sponsored by the Mothers’ and Children’s
Health and Welfare Association), as part of its efforts toprovide support for pediatric diseases and public health.
The Award for Promotion of Maternal Child Health was
created to commemorate the International Year of theChild in 1979. The award seeks to encourage the goodwork of individuals who have made great contributions
to society and the ﬁeld of community-based maternaland child health, in areas such as research on
motherhood and children’s health, raising widespreadawareness of public health principles, providing
practical education and instruction, and upgrading andexpanding the development of public health facilities. By
recognizing these accomplishments, the award program
seeks to further promote the development of maternaland child health. Every year, 15 award recipients are
selected from among candidates working in the field ofmaternal and child health. The recipients include publichealth nurses, midwives, nurses, doctors, dentists,
nutritionists, dental hygienists, nursery schoolteachers,
and maternal and child health support workers, who arechosen for the award based on recommendations fromthe head of prefectures, ordinance-designated cities,
core cities and special wards.

Momiji House, a Short-Stay Medical Care Facility
JCR supports Momiji House, which was established as
Japan’s ﬁrst short-term facility for children withcomplex medical care needs. The facility was built on
the grounds of the National Center for Child Health andDevelopment (Setagaya-ku, Tokyo) in April 2016.
Momiji House provides 24-hour-a-day medical care forchildren who require constant medical care at home.
Those with serious illness and disabilities and theirfamilies can stay for several days at Momiji House,feeling secure and comfortable as if they were athome. Aiming to realize medical care for patients livingwith rare and intractable diseases and their family
members, JCR has continued to provide continuous
support dating back to the time before the opening ofMomiji House.

Transmitting Information at Academic Conferences
As a company that seeks to be “a global specialty pharma in
the rare disease arena,” JCR strives not only to deliver superior
pharmaceuticals, but also to actively provide information on
cutting-edge technologies, clinical trial evidence, and related
matters.
In February 2023, at the 19th Annual WORLDSymposium™,
an international research conference on the basic research andclinical application of LSDs, 10 topics related to JR-141, JR-171,
and JR-441, JR-471, and other candidate treatments for LSDs
which it is developing using its proprietary J-Brain Cargo®
technology were presented orally or as posters, while it also
opened a booth at the venue where information was exchanged
with relevant parties.
Clinical trial results for JR-141 were also presented at the 6th
Asian Congress on Inherited Metabolic Diseases 2023 held inMarch 2023.

Efforts to Expand Access to Pharmaceuticals
IZCARGO® was approved and launched in Japan in 2021,
and Phase III global clinical trials for JR-141 are currently
underway outside of Japan. While JCR is working tostrengthen product development and registration in order todeliver this treatment to patients around the world, it has also
entered into an agreement with Clinigen Limited (“Clinigen”)
of the UK, and in March 2023 began addressing access tothe drug in countries where it has not yet been approved
through its Named Patient Supply program for IZCARGO®.
Clinical trials are conducted in selected regions, andregistration requirements limit the number of patients who
can participate. We have thus decided to implement a
program through Clinigen to provide access to this treatment
to patients who meet the medical needs, regulations, andstandards of each country. Our goal through this program is
to expand appropriate access to pharmaceuticals.

Sustainability Report 2023

23

Human Resource Management

S

Construction of a Dynamic Human Resource Portfolio
That Will Help to Accomplish the Strategy

Society

Promoting Human Capital Management, Including
Development of a Human Resources Portfolio

Basic Concept
As noted in its newly formulated Midterm Business Plan,“Reach Beyond, Together,” JCR aims to continue investments
in human capital and to establish a human resources strategy
that will help to improve corporate value. It will work toconstruct a dynamic human resource portfolio that will help
to accomplish the strategy, develop and organize permeationof diversity and inclusion, and activate individuals andorganizations promote improvements to engagement. JCR
will also advance efforts toward individual and organizational
growth by creating a workplace environment in which ourrichly diverse employees can shine, and strengthening hiringand development of next-generation leaders in anticipation of
full-scale global business expansion.

JCR sees developing and securing personnel who might
contribute to enhancing its corporate value as central to its
efforts to invest in human capital that will aid in advancing its
business plans. Going forward, JCR will strive to expand andenhance programs that will contribute to promoting humancapital management, including development of a humanresources portfolio.
To remain a group that is attractive to a diverse workforce
and to retain talent, we value the ability to share our corevalues with others regardless of nationality, gender, or age. To
secure those human resources, we are working to strengthen
not only recruitment of new graduates, but also mid-careerhires with diverse skills and attributes who can make
immediate contributions. In FY2022, we spent approximately
41 million yen on this effort. We will continue this proactive
investment in hiring in FY2023 and beyond with a focus on
securing human resources with an even greater degree of

Key Efforts Aimed at Personal and Organizational Growth24Construction of a dynamic humanresource portfolio that will help
to accomplish the strategy• Promote human capital management, including building a human resources portfolio• Offer online English conversation and in-person practical training programs to all those wishing to
improve their language skills• Develop next-generation global leaders (JCR Academy)

Development andorganizational permeation ofdiversity and inclusion• Create a corporate culture that utilizes the individual abilities of richly diverse employees• Promote the creation of a workplace where employees can thrive regardless of gender• Enhance initiatives for career support of persons with disabilities• Introduce a system that enables flexible work
• Support those raising children through in-house daycare centers and subsidies for childcare, etc.
• Measures to improve the childcare leave acquisition rate among males

Activation of individuals
and organizations promotion of
improvements to engagement• Build a human resource management framework as a system for realizing the image of
who we want our people to be• Promote the creation of a workplace environment that protects the safety and health of
employees and allows them to work with peace of mind

Sustainability Report 2023

specialization and diverse human resources. Our goal is toenhance our human resources portfolio with people better
able to contribute to advancing our global strategy.

Offering Online English Conversation and
In-Person Practical Training Programs to
All Those Wishing to Improve Their Language Skills
JCR focuses on employee training from the viewpoint that
employee growth leads to the development of the Company
itself. In addition to holding regular training for new hires and for
employees at each level of the organization, we also offer
English-language training and beginning in FY2020, we haveincorporated voluntary training in which employees can express
their own interest in participating and e-learning to support
employee efforts at self-improvement and growth. We also take
into consideration the needs of our employees and the ease withwhich they can participate in these training programs, whether inthe form of group training with outside instructors or participationin open lectures held outside the Company. English-language
training is also offered with a variety of content and formats,including group lessons, web-based training and others.

(Million yen)

40

English Language Training Expenses
3,400

20

0

2018

2019

2020

2021

2022

(FY)

*Data from JCR Pharmaceuticals Co., Ltd.

Human Resource Management(%)

Training Track Record
FY

2018

Group
training
Tier-speciﬁc training
Voluntary training

2019

2020

2021

2022

Numberof sessions

15

15

8

16

— *1

Hours

135

126

60

112

— *1

Amount(Millionsof yen)

6.6

9.0

5.1

11.4

16.0 *2

AmountEnglish language (Millions
trainingof yen)

5.7

7.2

17.0

27.9

34.0

*1 FY2022 employee training was reassigned to compliance training*2 JCR Academy, voluntary e-learning training, etc.
*Data from JCR Pharmaceuticals Co., Ltd.

100

Percentage of Male and Female Managers
12.5%

Female
Male

50

0

87.5%

2018

2019

2020
2021
2022
(FY)
*Data from JCR Pharmaceuticals Co., Ltd.

Developing Next-Generation Global Leaders(JCR Academy)

Creation of a Workplace Where Employees
Can Thrive Regardless of Gender

JCR Academy was launched in FY2022 as a training
initiative to develop next-generation global leaders andnurture the skills that will enable them to thrive on a
global stage. The goal is for participants to acquire thesoft skills required to thrive as global leaders, including
communication skills, project management skills, andleadership skills, through a practical program.

In October 2018, JCR was recognized in the Third Annual
Hyogo Women’s Active Participation Awards by Hyogo
Prefecture for its efforts to expand career opportunities for
women, raise the ratio of female employees in managerial
positions (from 5.8% in FY2012 to 12.5% in FY2022),
establish in-house daycare facilities, and encourage theparticipation of male employees in parenting activities.
In January 2019, we received Eruboshi certification(Grade 2) from the Minister of Health, Labour and Welfare
for excellence in promoting the active participation of
women in the workplace based on the Act on Promotion of
Women’s Participation and Advancement in the
Workplace. In FY2021, wewere evaluated for
creating a workplaceenvironment that balanceschildcare and work basedon a policy of eliminating
distinctions between men
and women, and received

Development and Organizational
Permeation of Diversity and Inclusion
Creating a Corporate Culture That Utilizes theIndividual Talents of a Richly Diverse Employees
Based on a firm belief that “Team JCR” is the source of JCR’svalue, we mutually respect different attributes such as gender,
age, nationality, and disability, and believe it is important tomaximize the individual abilities of richly diverse employees.
For this reason, we promote diversity and inclusion.

(%)
4

Employment Rate of Persons with Disabilities

2.0%

2

0

2018

2019

2020
2021
2022
(FY)
*Data from JCR Pharmaceuticals Co., Ltd.

the Hyogo Work-Life Balance Company Award.
Going forward, we will continue to conduct hiring andpromotions free of gender bias, so that we can remain acompany that enables women to continue working without
interrupting their careers for significant life events or otherreasons.

Promoting Employment of Persons with Disabilities
JCR aims to promote and normalize diversity, and to create
an environment in which those with disabilities can work
comfortably. It assigns counselors and uses in-person
interviews to check individual wellness and motivation and to
exchange information on work styles. The legally required
rate of employment of persons with disabilities was met in
FY2021, at 2.3%, but with an increase in the total number of
employees, in FY2022 that rate was 2.0%.
Going forward, we aim to become a company in which
diverse human resources can play an active role, both bycontinuously creating employment from the perspective ofwork sharing, and by establishing a system to ensureongoing follow-up.

Sustainability Report 2023

25

Human Resource Management

Introducing Systems to Enable Flexible WorkIn the belief that both work and private life areimportant to our employees, we have introduced
flexible work systems, some unique to JCR. These
include introduction of flextime and telecommuting
systems, allowing employees to take annual paid leavein hourly increments, and others. Since 2020, we havebeen working to enhance this initiative, including
gradually expanding eligibility for the flextime system
to each plant in the Production Division.
Beginning in 2019, we also began trial introduction ofa paid leave accumulation system*, unique to JCR.
This system can be used by employees whenever theyneed to provide childcare or nursing care to family
members, or when they need to see a doctor regularly
for the treatment or screening of personal injury,
illness, or chronic disease, among other situations.
From 2021, the scope of eligibility for nursing care,which had previously been limited to parents, has been
expanded to family members. JCR aims to introduce avariety of systems to provide a workplace environment
in which employees can work comfortably.
* The unused portion of paid leave may be carried over to the following fiscal
year. However, under the provisions of the Labor Standards Act, any unused
paid leave expires two years af ter it is granted. The new system allows
employees to save and use up to 40 days of their expired paid leave.

Support for Employees Raising Children,
through In-house Childcare Centers
and Childcare Subsidies, etc.
We have provided an in-housechildcare center at the ResearchInstitute for employees who are raisingchildren. In addition, we provide
monthly childcare subsidies to support

26

Sustainability Report 2023

employees who are unable to use the in-house childcare
center due to their work location. In recognition of theseand other efforts, we received the Kurumin certificationfrom the Ministry of Health, Labour and Welfare in
September 2022. JCR has now been certified for two
consecutive fiscal periods since 2018.
In addition, as a system for shortened working hours forchildcare, JCR provides for shortening working hours by
up to two hours per day until the child reaches the end of
the second grade of elementary school.

with those who have taken childcare leave. With theseand other steps, JCR is working to foster awareness of
the acquisition of childcare leave by males within the
Company. Through these measures, the childcare
leave acquisition rate among males has increased
every year, reaching 67% in FY2022. Going forward,
we will continue working to improve the childcare leaveacquisition rate.

40

Number of Childcare Subsidy Recipients30

Measures to Improve the Childcare Leave
Acquisition Rate among Males
As a social issue, childcare leave taken by males has
not yet fully become entrenched in society. Even at
JCR, the childcare leave acquisition rate among males(17% in FY2020) was lower than the childcare leaveacquisition rate among females (100% in FY2020). We
believe that fostering workplace understanding andinstilling awareness among male employees are
essential to improving the childcare leave acquisition
rate among males. Based on this belief, theChild-Raising Support Café (37 voluntary participants
in FY2020) and Ikuboss training (14 participants in
FY2021 and 28 in FY2022) (Ikuboss: a boss supportiveof child-raising) were held as in-house seminars. At theseminar, an outside lecturer spoke about the benefitsof childcare for males, and male employees andmanagers who have taken childcare leave in the pastshared their experiences to promote understanding
and cooperation for male employees to take childcare
leave. Furthermore, staff from human resources
departments explained various programs that enable
male employees to actively acquire childcare leave,and published interviews in the in-house newsletter

２０

0

40

2018

2019

2020
2021
2022
(FY)
*Data from JCR Pharmaceuticals Co., Ltd.

Childcare Leave or Reduced Work Hours
Employees with reduced work hours
Employees taking childcare leave

26
20

２０

0

2018

2019

2020
2021
2022
(FY)
*Data from JCR Pharmaceuticals Co., Ltd.

Human Resource Management

Activation of Individuals and Organizations
Promotion of Improvements to Engagement
Building a Human Resource Management
Frame as a Framework to Realize the Imageof Who We Want Our People to Become
To ensure proper communication between the Human
Resource Planning Department and each department,
regular discussions are held to align the Company’s
approach to future human resource needs before formulatinga personnel plan. This effort to build a human resource
management framework for people who can excel globally iscentered on a newly formulated the image of who we want
our people to become, and our desired corporate climate.
To study the current status of the above initiatives, in
FY2023 we conducted an engagement survey of all

employees to measure employee satisfaction levels. We also
conducted a human resource trend analysis (competency
measurement). We were able to obtain responses from about
90% of employees, and the results of our analysis of thesurvey were used in formulating our image of who we want
our people to become and our desired corporate climate.
Going forward, we will use the information in considering new
human resource systems, and will also begin considering asystem for measuring engagement on an ongoing basis.
In addition, with the aim of accumulating and visualizing
human resources information as human capital, we
introduced SAP SuccessFactors, a talent management
system, in parallel with the deployment and building of theCompany’s core SAP S/4 HANA system. The system, astandardized solution for human resource management, notonly allows for the centralized management of humanresource data, but will enable us to analyze and utilize data to

Who We Want Our People to Become

Be the doer.

Contribution-Based
Wage Payment
Framework

Related page

Midterm Business Plan for FY2023-2027,“Reach Beyond, Together”

P.11

Promotion of a Workplace Environment That
Protects the Safety and Health of Employees,
and Allows Them to Work Comfortably

Human Resources
Management
Framework

Evaluation
Framework
for Contribution

achieve talent management in line with our image of who wewant our people to become. Examples of these initiatives
include management of employee goals and evaluations, anduse of a Career Vision Sheet. The Career Vision Sheet is asystem unique to JCR, and is used to obtain information from
employees once a year regarding the jobs they desire going
forward and their career goals several years into the future.
This allows us to understand each employee’s vision for theirown career, and consider appropriate assignments, transfers,
and employee career development in light of future business
operations. It also functions as a tool for communication
between the Company and its employees.

Human Resources
Development
Framework

As an initiative to create an ideal workplace environment that
protects the safety and health of employees and allows them
to work with peace of mind, we are encouraging the use ofannual paid leave. We also provide group administration of
influenza vaccinations and support employees aged 35 years
and over who wish to receive a comprehensive health check.
To improve the workplace environment, we hold a monthly
Safety and Health Committee meeting on a Company-widebasis. Whenever improvements are necessary, the committee
members discuss what steps JCR should take. We also haveappointed two corporate physicians, one of whom provides
mental healthcare as a designated mental healthcare
physician. Furthermore, inside the Research Institute, wehave created a space called “JCR Oasis,” where employees
can get a massage and refresh themselves during work.

Sustainability Report 2023

27

Human Resource Management

C l os e Up

Initiatives for Hiring Those with Disabilities

Hiring and Creating Places
for Those with Disabilities to Excel
With the aim of promoting and normalizing diversity, in
addition to its existing recruitment activities JCR has
undertaken a wide-ranging review of work forindividuals with disabilities. Since 2021, we haveworked to create a system that would allow for stable
operations even during the COVID-19 pandemic, while
also introducing diverse work styles, including a hybridof teleworking and office-based work for employmentof those with disabilities. Through this system, we also
worked to expand employment of those with mental
disabilities. To create a more comfortable working
environment, we have also assigned counselors who

conduct one-on-one interviews to check on employee
wellness and motivation, and to discuss how theywork. The legally required rate of employment of
persons with disabilities was met in FY2021, at 2.3%,
but with an increase in the total number of employees,
in FY2022 that rate was 2.0%.
Going forward, we will look from the perspective ofwork sharing to create a base for employment of
those with disabilities, continue to expand eligible
occupations, and strive to ensure each person canmake full use of their abilities in their areas of strength.
In addition, we will put in place a system forcontinually following up with those with disabilities,
with the goal of being a company in which diverse
human resources can excel.

Support System for Employees with Disabilities
The Act for Eliminating Discrimination against Persons
with Disabilities, enacted in 2016, requires businesses
to make “reasonable accommodations” to remove as
many barriers as possible in the lives of people withdisabilities. At JCR, we are working to improve andmaintain the working environment to enable
employees with disabilities to lead stable professional
lives in accordance with the characteristics of their
particular disabilities. This includes, in the hybrid work
teams mentioned above, direct individual support,
including cooperation with specialized welfare
agencies, as well as assigning counselors to conduct
regular one-on-one employee interviews.

MESSAGE
I work as a member of a nine-person team, using software called AutoCAD to digitalize hand-drawn blueprints created in
the past. Since I had no experience with AutoCAD until I joined JCR, when I first started the job, I often made mistakes inoperating the software and in drafting procedures. To overcome those problems, I worked to identify the details behind mymistakes, verbalizing what steps I could take to avoid repeating them and implementing those steps.
At JCR, each drawing is handled by a team, so a system is in place to cover for any absences among the team, whichmakes it easy to take leave when necessary. Reasonable accommodations are made for the characteristics of each teammember’s disability, and among other things, the environment is such that we can immediately check on any questions wemay have about the work, allowing us to continue to work without feeling too muchof a burden. We are also able to maintain a good work-life balance, including time
Tomomi Tashiro
to pursue our hobbies.

HR Planning Dept., Administration Division

28

Sustainability Report 2023

Quality Assurance and Stable Supply

S

Society

Stable Supply of High-Quality Pharmaceuticals
Quality Assurance Based on Global Standards
All of JCR’s production sites have established a systemthat scientifically guarantees quality, encompassing thepurchase of raw materials, manufacturing, shipment of
products and product distribution in compliance with
PIC/S GMP, an international standard, and continue
efforts to raise those standards even further. JCR utilizes
single-use equipment and supplies in the manufacturingof its biopharmaceutical products, with a wide range ofculture medium and diagnostic agent suppliers in Japanand overseas. Because it also utilizes custom-madeitems, JCR enters into multiple-year contracts with
suppliers worldwide and ensures quality by conducting
regular on-site visits according to the level of risk.

Consistent Quality
Biopharmaceuticals require more highly sophisticated, complex
manufacturing and quality control than what is required bysmall molecule pharmaceuticals. Moreover, detailed
manufacturing and quality test plans are required. Each
production site sets quality targets under common,
Company-wide quality policy to continuously manufacturehigh-quality products, evaluates the status of achievement of
those targets each year, and reports the results tomanagement. Eyeing future global expansion, we are operating
a consistent quality system to ensure that no differences arise

between production sites in terms of their positions on quality
standards. At the same time, through the Quality Testing
Department which has been integrated with the Analytical
Methods Development Department, we have established aquality control system that enables a streamlined process fromconsideration of testing methods in the early stages of research
to release testing for commercial production.

Ensuring a Stable Supply of Products
Since many JCR products are administered to patientsover the long term, an unstable supply can be directly
detrimental to the interests of patients. In terms of productcharacteristics, JCR products require a longer period oftime to manufacture than small molecule pharmaceuticals
because they involve more time-consuming andcomplicated manufacturing processes. To ensure a steadysupply of products, JCR secures appropriate levels of raw
material and product inventories, along with manufacturingof drug substances and finished products at its in-houseproduction sites in Japan to allow for flexible
manufacturing schedules. The ratio of products foroverseas markets will increase in the future and there is aneed to ensure a stable supply during emergencies.
Therefore, we are considering manufacturing products andstoring key intermediates at production sites overseas.

Ensuring Product Safety
Pharmacovigilance System
Given that the safety evaluation carried out when a new
product is approved is based on limited clinical trials, JCR
continues to collect and evaluate safety and validity
information on products after they have been manufactured
and sold in accordance with a risk management plan

(RMP). All the safety information collected is evaluated in atimely manner, and the need for implementing any
additional safety measures is considered. Concurrently,
JCR periodically evaluates the accumulated safety data
and verifies whether there are any changes in trends suchas side effects. If safety measures are necessary, JCR will
convey information swiftly and reliably to all users that
require it, such as medical professionals.
In order to implement these measures appropriately, JCR
carries out safety management operations in accordancewith laws and regulations. Notably, JCR provides regulartraining on the importance of collecting safety information
to medical representatives (MRs), who directly interface
with medical professionals, as well as the departments
implementing safety management operations. This training
is part of JCR’s efforts to improve the safety awarenessvital to undertaking its corporate business activities.

System of Cooperation among
Three Responsible Persons
In accordance with the Pharmaceuticals and Medical Devices
Act, JCR has set up a system of cooperation among three
responsible persons, namely the Marketing
Supervisor-General, Quality Assurance Manager and Safety
Management Supervisor. This system is designed toscientifically and objectively evaluate the quality and safety of
products independently of the Sales Division and Production
Division, which are the principal bodies of JCR’s corporate
business activities. The system decides whether or not torelease products and if there is a need for product recalls or
additional safety measures, all important factors for JCR. By
also reporting to and working in cooperation with the
Representative Director and President and other responsible
officers, management and this system work together toensure the quality and safety of JCR’s products.

Sustainability Report 2023

29

Corporate GovernanceG

Corporate Governance

Basic Concept
The JCR Group believes that for the purpose of providing
superior quality and more useful pharmaceutical products
and medical equipment to society, it is important to aim
to enhance the legality, transparency and objectivity of its
management, to heighten its corporate value further, andat the same time to build a system to ensure theprotection of shareholder interests. To this end, we will

work to secure implementation and operation of effective
internal control systems, to evaluate the effectiveness ofsuch systems on our own, and to fulﬁll our corporatesocial responsibilities.
For the purpose of compliance, we recognize that it isimportant to adhere to laws and regulations, global
standards, and various industrial standards, and also tofoster a corporate culture with the highest standards of
ethics in the course of day-to-day business activities.

Corporate Governance System (As of July 6, 2023)
General Shareholders Meeting
Election andremovalAudit &
Supervisory Board

Election and removal

Audit

Instruction and supervisionInternal Audit
Department

ReportingInstructions

ReportingManagement Committee
Management Control Committee

Internal audit

30

Sustainability Report 2023

Audit

Reporting and consultation

Internal Control
Committee

ReportingCorporate Officers
Instructions

Inspection
andevaluation

Opinions
andevaluation

Representative Director and President

Instructions

Accounting Auditors

Inquiry

Board of Directors

ReportingExecution Division of Each Operation

Advisory Committees• Advisory Committee for Nomination,
Compensation, Etc.
• Sustainability Advisory Committee

Reporting
Supervision and review

Internal Committees• Compliance Committee• Sustainability Committee• Safety and Health Committee• Environmental Committee• Donation Screening Committee• Risk Management Promotion MeetingCorporate Governance

Overview of Corporate Governance System
JCR is a company with an Audit & Supervisory Board. As such, wehave established the Board of Directors consisting of 12 Directors,
including seven Outside Directors, the Audit & Supervisory Board
consisting of five Outside Audit & Supervisory Board Members,
and Accounting Auditors.
In addition to these organs, we have established theManagement Control Committee, Advisory Committee for
Nomination, Compensation, Etc., Sustainability Advisory
Committee, Management Committee, Internal Audit Department,Internal Control Committee, Compliance Committee, Sustainability
Committee, Safety and Health Committee, Environmental
Committee, Donation Screening Committee, and Risk
Management Promotion Meeting. As for the composition of thecorporate governance system we believe it covers an appropriate
scope in line with our current condition, and that it enables efficientmanagement of business operations. Also, we have judged thatthe current governance system, which includes seven Outside
Directors and five Outside Audit & Supervisory Board Members, iseffective for ensuring management transparency, objectivity(impartiality) and independent supervision over management.

Description of Organs of the Company
Board of Directors
The Board of Directors consists of 12 Senior Executive Directors,
and in principle, an ordinary Board of Directors’ meeting is held
once per month, and an extraordinary Board of Directors’ meetingis held as necessary. The Board of Directors decides importantmatters concerning the management of the Company in addition tomatters specified by laws and regulations. In FY2022, the Board of
Directors discussed and made decisions on the establishment ofan overseas subsidiary, important capital expenditures, andcollaboration and license agreements with other companies.
Our Articles of Incorporation state that the Company may have no

more than 12 Directors and that the appointment of those Directors
must be resolved at a meeting attended by shareholders who holdat least one-third of the voting rights of all the shareholders who
have voting rights and that it must be passed by a majority of thevotes. Furthermore, the resolutions to appoint Directors shall not be
decided by cumulative voting.

Management Control Committee
The Management Control Committee consists of Representative
Directors and Internal Directors. The Management Committee
deliberates and decides important management matters related to
management policy, management strategy and other priorities, inprinciple. However, the Management Control Committee operates
as a meeting body when expeditious responses are needed
depending on the matter in question.

Advisory Committee for Nomination, Compensation, Etc.
The Advisory Committee consists of one Internal Senior Executive
Directors, four Independent Outside Directors and two Independent
Outside Audit & Supervisory Board Members (one full-time member and
one part-time member). The Committee deliberates on important mattersconcerning nomination and compensation for Senior Executive Directors
and Corporate Officers and Audit & Supervisory Board Members. It also
provides opinions on the evaluation of the effectiveness of the Board of
Directors, etc. In FY2022, it reported to the Board of Directors in response
to inquiries regarding appointments of Senior Executive Directors andCorporate Officers and major organizational changes.

Sustainability Advisory Committee
The Sustainability Advisory Committee comprises a total of fivemembers: one Internal Senior Executive Directors, one Corporate
Officer, and three independent Outside Directors. The Committee
reports to the Board of Directors in response to inquiries on thecontent of discussions by the Sustainability Committee andEnvironmental Committee. In FY2022, it reported on JCR’s current
conditions, such as external ESG assessments, and challenges, aswell as the Sustainability Committee and Environmental Committee’s
annual activity report and planned initiatives for FY2023 and beyond.

Management Committee
The Management Committee consists of five Internal Senior
Executive Directors, two Senior Corporate Officers, and three
Corporate Officers, as well as Outside Audit & Supervisory Board
Members and outside experts acting as observers. The Committee
meets twice per month, in principle. The purpose of the Committee
is to carry out deliberations and make decisions necessary for
management to make judgments after sharing important mattersrelated to management policy, management strategies and othermatters related to company management among departments, andto submit results to the Board of Directors.

Corporate Ofﬁcer System
We have introduced the corporate officer system for the purpose of
ensuring the efficiency of management of the Company and toaccelerate the execution of operations. Two Senior Corporate
Officers and three Corporate Officers execute operations based on
the management policy decided by the Board of Directors.

Audit & Supervisory Board
JCR is a company with an Audit & Supervisory Board. Five Audit &Supervisory Board Members have assumed office (one full-time
Audit & Supervisory Board Member and four part-time Audit &Supervisory Board Members) and all of them are Independent
Outside Audit & Supervisory Board Members.
The Audit & Supervisory Board holds a meeting once per monthand also an extraordinary Audit & Supervisory Board meeting as
needed.
Audit & Supervisory Board Members attend important meetings,
including Board of Directors’ meetings. The Audit & Supervisory
Board also serves as a supervisory body over management, andascertains the Company’s status through consultations with top
executives including General Managers in charge.

Sustainability Report 2023

31

Corporate GovernanceInternal Audit Department

Safety and Health Committee

The Internal Audit Department, which is directly under the control of
the Representative Director, performs audits on whether or not
administrative and operational structures of JCR’s management
activities as a whole and business operations are reasonably
executed by departments in line with laws and regulations,confirming and evaluating objectively from an independent position.
The purpose of the internal audit is to help the Company achieve
management targets effectively and improve its operations.
The Internal Audit Department consists of two employees,
including one department Director. Internal audit results arereported to the Representative Director and Audit & Supervisory
Board Members.

JCR has set up the Safety and Health Committee for the
purposes of securing the safety and health of employees at
our workplaces, and establishing and promoting a
comfortable work environment. The Committee is chaired by
the general safety and health manager and consists of anindustrial physician, safety administrator, healthadministrator, and employees at management level, all ofwhom are nominated by the Company, as well as employees
nominated by an employee representative and a labor andsocial security attorney acting as an observer. The
Committee holds meetings every month to report on thestatus of each workplace and exchange opinions, as it works
to secure and improve occupational safety and health.

Internal Control Committee
JCR established the Internal Control Committee to respond to theInternal Control Reporting System under the Financial Instruments
and Exchange Act. The Internal Control Committee is chaired by
the Director of the Internal Control Department, with members
appointed from relevant departments in the Company, and Outside
Audit & Supervisory Board Members and Accounting Auditors
serving as observers. In principle, meetings are held every twomonths. It promotes and supervises the designing and operation of
appropriate internal control relating to various business processes
to ensure the reliability of financial reporting.

Sustainability Committee
JCR has established the Sustainability Committee in order toimplement and promote sustainability management initiatives, witha view to contributing to the realization of a sustainable society andachieving sustainable growth for JCR based on its management
philosophy of “Contributing toward people’s healthcare throughpharmaceutical products.” The Sustainability Committee is chairedby the director in charge of sustainability with employees selectedfrom each division of the Company as members.

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Sustainability Report 2023

Environmental Committee
JCR views the environmental impacts of its businessactivities as risk factors that could potentially impact its
long-term business or society, and believes that ensuring
environmental protection is the responsibility of management
and has established the Environmental Committee in order topractice and promote environmentally conscious businessactivities. This committee consists of Internal Directors andemployees selected from each internal department.

Donation Screening Committee
JCR has established the Donation Screening Committee toscreen donations made by JCR and its subsidiaries toensure they are made appropriately and are socially andinternally transparent and fair.
The Donation Screening Committee is composed of the
Executive Director of Administration Division, members of theGeneral Affairs Department, Accounting Department, Legal

Affairs Department, Internal Control Promotion Department,
and a medical expert. It regularly evaluates matters such as
the practice of donations and the appropriateness of
donation amounts in accordance with their type, from an
objective standpoint, with reference to factors such as
relevant laws and regulations, industry rules, and internal
standards. Details of the donation screenings are reported
quarterly to the Board of Directors.

Compliance
Compliance System
JCR has established Compliance Rule to ensure that the group ofcompanies comprising JCR and its subsidiaries conduct
operations appropriately. Concurrently, the Compliance Control
Committee and the Compliance Promotion Committee havebeen formed in order to establish the necessary measuresconcerning compliance and oversee their implementation.
The Compliance Control Committee, whose members arenominated by the Board of Directors, fulfills roles such as
formulating basic policies and plans for promoting complianceactivities, and presenting these matters to the Board of Directors,
as necessary. Furthermore, the Compliance Promotion
Committee, whose members are nominated by the ComplianceControl Committee, is engaged in duties related to promoting
compliance.
Separately from these committee organizations, theCompliance Rule requires that the heads of each division beappointed as the person responsible for the execution ofcompliance and assume responsibility for the implementation ofcompliance in the divisions they manage. Meanwhile, theCompliance Rule requires that education and training be
provided regularly in each division to improve compliance-related
awareness and enable employees to obtain and retain relevant
knowledge. The Rule also requires each employee to make asincere effort to participate in such education and training.

Corporate GovernanceCompliance Initiatives
JCR defines compliance as: “All of the Company’s executives
and employees acting in accordance with laws andregulations (including rules, guidelines, voluntary industry
standards, JCR’s corporate philosophy and internal rules,etc.) with an ethical spirit for the Company to fulfill its social
mission, meet the demands of society, realize sound, sincere
management, and achieve sustainable development.”
The most important principle in promoting compliance is to

not turn a blind eye when you encounter situations where
you have doubts about compliance-related issues. We will
neither hide our problems, nor try to turn them into apersonal responsibility, but shall work together to resolve
them. We should constantly review what we are doing, what
we have done, and what we are trying to do in the futurefrom the perspective of “creating sincere Team JCR.” With
our Compliance Manual and Compliance Handbook serving
as our compass, we shall realize our vision for the Company

by resolving problems whenever they arise.
JCR implemented the following compliance activities in
FY2022: it issued a compliance newsletter and compliancee-mail magazine every month; provided general compliancetraining, including messages from management, every
month; conducted a questionnaire on harassment; improved
internal awareness through Compliance Awareness Monthheld twice a year; and provided compliance training for new
employees and managers.

Composition, Number of Meetings Held, and Attendance Rate for Internal Committees and Other Organs of the Company in FY2022 (As of end of FY2022)
Advisory Committee for
Nomination, Compensation, Etc.
Internal Control Committee

Compliance
Committee

ComplianceControlCommittee
Compliance
Promotion
Committee

Safety and Health Committee

Donation Screening Committee

Risk Management
Promotion Meeting

Composition

7 members (1 Internal Director, 4 Independent Outside Directors, 2 Independent Outside Audit & Supervisory Board Members)

Number of meetings held

10

Attendance rate

94.12%

Composition

11 members (1 from Administration Div., 4 from Internal Control Dept., 3 from Internal Audit Dept., 1 from Accounting Dept.,
1 from General Affairs Dept., and 1 from Production Management Dept.)

Number of meetings held

7

Attendance rate

90.79%

Composition

12 members (2 attorneys at law, 5 Internal Directors, 1 Independent Outside Audit & Supervisory Board Member, and 4 Corporate Officers)

Number of meetings held

2

Attendance rate

100%

Composition

18 members (1 from Legal Affairs Dept., 3 from Internal Control Dept., 1 from Sales Div., 1 from Development Div., 2 from Research Div.,
6 from Production Div., 2 from Quality Assurance Div., 1 from Tokyo Office, and 1 from Accounting Dept.)

Number of meetings held

2

Attendance rate

94.59%

Composition

14 members (1 labor and social security attorney, 2 industrial physicians, 1 from HR Planning Dept., 2 from General Affairs Dept., 1 from Sales Div., 1 from Quality Assurance Div.,
1 from Tokyo Office, 1 from Development Div., 2 from the Production Division Safety and Health Committee, and 2 from the Research Institute Safety and Health Committee)

Number of meetings held

12

Attendance rate

91.62%

Composition

9 members (1 Adviser, 1 Executive Director of Administration Div., 1 from Legal Affairs Dept., 1 from Accounting Dept.,
1 from Development Div., and 4 from Internal Control Dept.)

Number of meetings held

10

Attendance rate

96.63%

Composition

15 members (4 Internal Directors, 1 Independent Outside Audit & Supervisory Board Member, 4 Corporate Officers, 1 from Corporate Strategy Dept.,
1 from Global Strategy Dept., 1 from Business Development Dept., 1 from Sales Div., 1 from Internal Audit Dept., and 1 from HR Planning Dept.)

Number of meetings held

2

Attendance rate

100.00%

Sustainability Report 2023

33

Corporate Governance

Whistleblowing System (JCR Hotline)
JCR has established whistleblowing and consultation desks
within and outside the Company. Regarding the permissible
content of reports and consultations, JCR has adopted asystem that accepts not only reports and consultations on
violations of laws and regulations or internal rules, but also
consultations on harassment and mental health, as well as
opinions, requests, and suggestions for improvements. In
addition, JCR has distributed to all employees businesscard-sized cards carrying the 27-item JCR Compliance Policy
and contact information for the consultation desk, along with
distributing and displaying posters in each department. JCR
strives to make the whistleblowing system more generally
known and easy to utilize through these measures.

Risk Management
Risk Management Promotion Meeting
JCR has established the Risk Management Promotion
Meeting, which is led by the Risk Management Officer

appointed by the President, and includes division Executive
Directors (or department Directors for departments that do
not use the division system), as well as presidents ofsubsidiaries, as business risk managers. The Risk
Management Promotion Meeting meets regularly to promote
JCR’s risk management and implements measures such assummarizing the risk management activities of each division,etc., preventing the occurrence of Company-wide risks, andformulating Business Continuity Plans (BCPs).

Status of the Risk Management System
As a company that handles pharmaceutical products thatconcern people’s health, JCR has established the Basic Risk
Management Rule and develops its risk management system
and ascertains risk in its business activities based on that
rule. Furthermore, JCR is creating systems to address risk
prevention, risk management, and risk contingencies
through collaboration with related committees such as the
Risk Management Promotion Ofﬁce, Internal Control
Committee and Compliance Committee.
JCR has listed the important risks it should be aware ofand selected and decided on the three items below as BCP
priorities.
1. Response measures in the event of a disruption in the
supply of GROWJECT®
2. Company-wide response measures in the event of alarge-scale disaster
3. Response measures in the event of a major complianceviolation
In particular, as a pharmaceutical company, JCR regularly
holds meetings of the three executives of manufacturing andmarketing (Marketing Supervisor-General, Quality AssuranceManager and Safety Management Supervisor) in accordancewith laws and regulations, and has constructed systems thatassure the quality, effectiveness and safety of drugs.
Moreover, while expanding its operations globally, JCR will
introduce a world-class drug quality system and pursue aneven higher level of safety.
Please refer to our “Corporate Governance Report” for details.

https://www.jcrpharm.co.jp/en/site/en/company/governance.html

Risk Management System
Related committees

President (Chairman)
Appoint

Compliance Committee

Risk Management Officer
Risk Management
Promotion Ofﬁce(Internal Control Dept.)

Instruct

ReportInternal Control Committee
Risk Management
Promotion Meeting

Risk Management Directors(Executive Directors and operating company presidents)

34

Sustainability Report 2023

Safety and Health Committee
Other committees

Corporate GovernanceOutside Directors and Outside Audit &Supervisory Board Members
Functions and Roles of Outside Directors
JCR has seven Outside Directors, comprising five Independent
Outside Directors and two Outside Directors. It has ﬁve Outside
Audit & Supervisory Board Members, all of whom are
Independent Outside Audit & Supervisory Board Members.
Outside Directors supervise management from an
independent standpoint to contribute to JCR’s sustainablegrowth and medium- to long-term improvement of corporate
value through decision-making at Board of Directors’ meetings.
Outside Directors strengthen cooperation with the Audit &Supervisory Board, exchange information, share awareness,
and appropriately reﬂect these aspects in Board of Directors’
meetings from an objective point of view. Four Independent
Outside Directors are also members of the Advisory Committee
for Nomination, Compensation, Etc.
To further increase the independence and neutrality of ouraudit system, Outside Audit & Supervisory Board Members
proactively acquire information necessary for audits by sharing
information with an audit firm and the Internal Audit Dept., andmonitor the execution of Directors’ duties through operational
and accounting audits. As they are expected to present
objective opinions on audits, Outside Audit & Supervisory Board
Members ask unreserved questions and offer comments to theRepresentative Directors and the Board of Directors. Two of the
Independent Outside Audit & Supervisory Board Members (onefull-time member and one part-time member) are members of
the Advisory Committee for Nomination, Compensation, Etc.

Interests between JCR and Its Outside Directors
or Outside Audit & Supervisory Board Members
Outside Director Toshihide Yoda concurrently holds the post ofManaging Director at MEDIPAL HOLDINGS CORPORATION(MEDIPAL HOLDINGS). JCR and MEDIPAL HOLDINGS
concluded a contract for a capital and business tie-up, as wellas multiple contracts for investment in development. MEDIPALHOLDINGS also holds 23.28% of JCR’s shares.
Outside Director Marc Dunoyer concurrently holds the post of
Chief Executive Officer of Alexion, AstraZeneca Rare Disease.
JCR and Alexion have signed a Research Collaboration, Option
and License Agreement concerning a treatment for aneurodegenerative disease that applies JCR’s J-Brain Cargo®
technology.
The status of Outside Directors and Outside Audit &Supervisory Board Members’ stock investments in JCR isrecorded in our annual Securities Report. Otherwise, there areno special interests between JCR and its Outside Directors or
Outside Audit & Supervisory Board Members.
JCR designates 10 members as Independent Directors or
Audit & Supervisory Board Members, as stipulated by the listing
regulations for the Tokyo Stock Exchange. The 10 members are

Outside Directors Toshihiro Ishikiriyama, Takashi Suetsuna,
Yuko Hayashi, Yutaka Atomi, and Philippe Fauchet, as well as
Outside Audit & Supervisory Board Members Kazumasa
Oizumi, Kazuhiko Yamada, Kenjiro Miyatake, Takeshi Komura,and Shuichi Tani.

Composition of Board of Directors
and Audit & Supervisory Board
JCR’s Board of Directors consists of five Internal Directors, five
Independent Outside Directors, and two Outside Directors.
Accordingly, JCR has appointed Independent Outside Directors
who account for more than one-third of the Board of Directors,
sufficiently meeting the conditions required in the Corporate
Governance Code which was revised in June 2021. Furthermore,
the Audit & Supervisory Board consists of five Independent
Outside Auditors.

MESSAGEI am honored to become again a director of JCR, and I believe thatthe pursuit of science to discover medicines that change patients'
lives is an important mission for JCR. The shared values of theCompany put the patients we serve at the center of our priorities,
and the whole company contributes to these innovations, beyond our
researchers and scientists. JCR is involved in a wide range of
products and technologies, and its recent contribution to the
production of a COVID-19 vaccine is truly remarkable. It is an excitingtime to contribute to the success of JCR as a Board member.

Marc Dunoyer

Outside Director

Sustainability Report 2023

35

Corporate Governance

Skill Matrix of Directors and Audit & Supervisory Board Members and Attendance Rate at Board of Directors and Audit & Supervisory Board Meetings in FY2022
Advisory
Committee for
Nomination,
Overall
Industry
Compensation,
Management Knowledge
Etc.

Board ofDirectors

Shin Ashida

Representative
Director, Chairman,
CEO and COO

Toru Ashida

Senior Vice
President

Mathias Schmidt

Vice President

Hiroyuki Sonoda

Vice President

Yoshio Hiyama

SeniorExecutive
Director

Toshihiro Ishikiriyama

Director

Takashi Suetsuna

Director

Toshihide Yoda
Yuko Hayashi
Yutaka Atomi
Philippe Fauchet
Marc Dunoyer
Kazumasa Oizumi
Audit &
Supervisory
Board

Skill
GlobalExperience

R&D

Production

Sales

ICT

Administrative
Legal Affairs
Experience

Tax,
Finance
Risk
Sustainability
andManagement
Accounting

Other

100%
100%
Business Development
andContract Negotiation

Quality and Safety

100%

Director

100%(Outside)

Diversity andInclusion

Director(Independent/Outside)

Director(Outside)

Audit & SBM*

(Independent/Outside)100%
90.91%(Independent/Outside)

Director

100%
100%

(Independent/Outside)(Independent/Outside)

100%
100%

(Independent/Outside)

Director

AttendanceRate of theBoard Meetings(FY2022)

Business Development,
Medical Affairs,
Public Relations andGovernment Affairs

100%

Corporate Planning—

Audit Practice100%

Audit & SBM*

100%

Kenjiro Miyatake

Audit & SBM*

100%

Takeshi Komura

Audit & SBM*

92.31%

Shuichi Tani

Audit & SBM*

100%

Kazuhiko Yamada(Independent/Outside)(Independent/Outside)(Independent/Outside)(Independent/Outside)* Audit & Supervisory Board Member

36

Sustainability Report 2023

The second foundation marks
the beginning of a new challenge
toward growth.

Sustainability Report 2023

37

History of Growth
2010

1975

JCR Pharmaceuticals Co., Ltd. founded

Launched Epoetin Alfa BS Inj. [JCR]
for treatment of renal anemia,
the ﬁrst domestically produced biosimilar

1978

Started sales of Urokinase drug
solution (intermediate)

1985

Started import and sales of Grorm
Launched Urokinase product2013

Listed on the First Section of the Tokyo Stock
Exchange (TSE)

®

2018

Launched IZCARGO®,
a recombinant treatment for
mucopolysaccharidosis II

Launched Agalsidase Beta BS I.V.
Infusion [JCR], a recombinant treatment
for Fabry disease

2022

2019

Changed Japanese corporate name to

Launched Darbepoetin Alfa BS Inj.
[JCR], a long-acting
erythropoiesis-stimulating agent

2016

2020

2014

2021

Established JCR USA, Inc.

Transitioned to the Prime Marketof the TSE
Completed constructionof the Kobe Science Park Center
Established JCR Europe B.V.

30 billion yen

1993

Launched GROWJECT Inj. 4IU,
a recombinant human growth
hormone (hGH) productLaunched TEMCELL HS Inj., the ﬁrst
allogeneic regenerative medical product in Japan2003

Launched new liquid formulation of
GROWJECT ®, a recombinant hGH product

®

®

2017

Concluded license agreement formesenchymal stem cells (MSCs) with
Osiris Therapeutics, Inc. (U.S.)*

Established AlliedCel Corporation
Established JCR Luxembourg S.A.

Acquired ArmaGen, Inc. (U.S.)
Commenced business activities at JCR
DO BRASIL FARMACÊUTICOS IMPORTAÇÃO
E EXPORTAÇÃO LTDA. (JCR DO BRASIL)

Concluded a business capital allianceagreement with MEDIPAL HOLDINGSCORPORATION

2009

Concluded a comprehensive agreement
concerning biopharmaceuticals
with the GlaxoSmithKline Group

Trends in net sales since 1975

(Consolidated ﬁgures are shown for FY2004 and subsequent years)

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

(FY)

* The licensor was changed to Mesoblast Group (Australia) in 2013, following the transfer of MSC-related rights from Osiris Therapeutics, Inc. to Mesoblast Group.

Established purification technology

Established technologies ranging
from cell development to culture technologies

Entered the regenerative medical product field

Production at the time of foundation

38

Sustainability Report 2023

Production today

JCR’s history started from the production of “Urokinase,” a urine-derived protein-degrading enzyme. JCR will ambitiously
develop drugs for rare diseases, which have been our target since our inception, as it seeks to evolve as a
research-oriented specialty pharma with global exposure. We aim to develop these drugs with our proprietary
biotechnologies, technologies for cell therapy and regenerative medicine, and gene therapy technologies.

Key Topics for FY2022
For details, please refer to news releases found at the URL address listed under each topic.

July 2022

November 2022

Filed a Partial Change Application for a Supplemental Indication of GROWJECT for theTreatment of Short Stature Due to Short Stature Homeobox-containing Gene (SHOX) Deficiency®

In June 2023, JCR received partial change approval for the supplemental indication of GROWJECT ®.
https://ssl4.eir-parts.net/doc/4552/tdnet/2161425/00.pdf

August 2022
Upgrated Medication Management App Melon Nikki™
for Pediatric Patients Undergoing Growth Hormone Therapy
https://ssl4.eir-parts.net/doc/4552/announcement1/81631/00.pdf

Completed Construction of the New API Plant Kobe Science Park Center
The Kobe Science Park Center will produce vaccines and other remedies in case of such apandemic emergency and will carry out research, development, and manufacturing of JCR’s
proprietary biopharmaceutical drugs for rare diseases.
https://ssl4.eir-parts.net/doc/4552/tdnet/2200173/00.pdf

Received the FY2022 Hyogo Childcare Support Award
December 2022

September 2022

Established JCR Luxembourg S.A. in Luxembourg as a European
Packaging and Logistics Hub for Global Distribution

Established JCR Europe B.V. as an Overseas Subsidiary to
Become a Base for Development in Europe

January 2023

https://ssl4.eir-parts.net/doc/4552/tdnet/2185245/00.pdf

October 2022
JCR and Sysmex Corporation Established Joint Venture AlliedCel Corporation
AlliedCel aims to conduct research and development and early commercialization ofregenerative medical products using diverse cells such as stem cells.
https://ssl4.eir-parts.net/doc/4552/tdnet/2186410/00.pdf

Selection as a METI “Project for Establishing Biopharmaceutical
Manufacturing Sites to Strengthen Vaccine Production”
JCR will use the grant from this project to construct a new plant for drug product filling and finishing.
https://ssl4.eir-parts.net/doc/4552/tdnet/2186623/00.pdf
https://ssl4.eir-parts.net/doc/4552/tdnet/2192404/00.pdf

Obtained “Kurumin” Certification for the Second Consecutive Term
as a Company Supporting Childcare
https://ssl4.eir-parts.net/doc/4552/announcement1/83392/00.pdf

Initiated Development of New Drug Candidate that Uses J-Brain Cargo ®
for the Treatment of Fucosidosis (Development Code: JR-471)

https://ssl4.eir-parts.net/doc/4552/tdnet/2212726/00.pdf

U.S. Food and Drug Administration (FDA) Grants Rare Pediatric Disease Designation
for JR-141 for the Treatment of Mucopolysaccharidosis Type II (Hunter Syndrome)https://ssl4.eir-parts.net/doc/4552/tdnet/2223488/00.pdf

Received the European Award for Best Practices 2022
by the European Society for Quality Research (ESQR)
https://ssl4.eir-parts.net/doc/4552/tdnet/2223490/00.pdf

March 2023
Achieved Preclinical Proof-of-Concept Milestone in a Collaboration
with Takeda Pharmaceutical Company Limited
to Develop Gene Therapies Using J-Brain Cargo ® Technology
https://ssl4.eir-parts.net/doc/4552/tdnet/2255762/00.pdf

Concluded a Research Collaboration, Option and License Agreementwith Alexion, AstraZeneca Rare Disease to Develop a Therapy Using
J-Brain Cargo ® for the Treatment of a Neurogenerative Disease
https://ssl4.eir-parts.net/doc/4552/tdnet/2257038/00.pdf

https://ssl4.eir-parts.net/doc/4552/tdnet/2195075/00.pdf

Concluded a Memorandum and Agreement with MEDIPAL HOLDINGS CORPORATION
Concerning Global Commercialization of Drug Candidates for Ultra-rare Diseases
The two companies concluded a licensing agreement for a drug candidatethat uses J-Brain Cargo® for the treatment of fucosidosis.
https://ssl4.eir-parts.net/doc/4552/tdnet/2195077/00.pdf

Sustainability Report 2023

39

Consolidated Financial and Non-Financial Highlights
JCR Pharmaceuticals Co., Ltd. and Subsidiaries(million yen)
20,000Operating profit

34,343(%) (million yen)60
16,000Operating profit ratio(million yen)
50,000

Profit attributable to owners of parent/Profit ratio

25,00030

10,000

4,975
14.5%
0

2018

2019

2020

2021

2022

0

(FY)

2018

2019

2020

2021

2022

(FY)

(%)
60

30

8,000

Proﬁt ratio

Operating profit/Operating profit ratio

Proﬁt attributable to owners of parent

Net sales by product

3,772
11.0%

0

0

2018

2019

2020

2021

2022

(FY)

0

Epoetin Alfa BS Inj. [JCR]GROWJECT®

Darbepoetin Alfa BS Inj. [JCR]TEMCELL® HS Inj.

Agalsidase Beta BS I.V. Infusion [JCR]AZD1222 stock solution
Revenue from licensing and others

15

(%)
40

(yen)
120

ROE

5,000

R&D expenditure ratio

8,802
25.6%

Dividend per share/Dividend payout ratio

EPS

（％）
30

(million yen)
10,000R&D expenditures

EPS/ROE

60

20

(yen)
30

65.9%

(%)
70

Dividend payout ratio

R&D expenditures/R&D expenditure ratio

Dividend per share

IZCARGO®
Urine-derived products

20.0
15

35

30.35
7.4％

0

2018

2019

2020

2021

2022

(FY)

0

0

2018

2019

2020

2021

2022

(FY)

0

0

2018

2019

2020

2021

2022

(FY)

0

* On October 1, 2020, JCR conducted a 4-for-1 stock split of its common shares. For information on EPS and dividend per share, please refer to the note on page 87 of JCR Report 2023.

40

Sustainability Report 2023

Capital investment

Number of employees by occupation

Number of new graduate recruits/
Male-to-female ratio (Data from April each fiscal year)854(million yen)
10,000

(%)
100

800

8,023

5,000

0

400

2018

2019

2020

2021

2022

0

(FY)

7

15

17

13

10

15

14

23

9

11

2020

2021

2022

2023

50

2018

2019

Research

2020

Development

Quality assurance

2021

2022

Production

0

(FY)

2019
Male

Sales

Administration and other(FY)

Female* Aggregate range: JCR Pharmaceuticals Co., Ltd. (non-consolidated)* Aggregate range: JCR Pharmaceuticals Co., Ltd. (non-consolidated)

0

87.5%

2018
Male

2019
Female

2020

2021

2022

(FY)

18

2.0%

10

0

(%)
4

2018

2019

2020

2021

2022

(FY)

* Aggregate range: JCR Pharmaceuticals Co., Ltd. (non-consolidated)

2

0

10

0

(%)
6

19

20
Number of retired employees

50

20

Number of retired employees/Turnover rate

Employment rate

12.5%

Number of persons with disabilities employed

(%)
100

Number of persons with disabilities employed/
Employment rate

2.8%

2018

2019

2020

2021

2022

(FY)

3

Turnover rate

Percentage of male and female managers

0* Aggregate range: JCR Pharmaceuticals Co., Ltd. (non-consolidated)* Aggregate range: JCR Pharmaceuticals Co., Ltd. (non-consolidated)

Sustainability Report 2023

41

Data
As of March 31, 2023

Society
FY2018FY2019FY2020

FY2021

FY2022

613

654

719

797

854

Research

129

146

154

221

244

Development

32

33

38

58

46

Production

230

246

270

209

226

Sales

117

119

122

118

121

Quality Assurance

31

33

36

81

102

Administration and other

74

77

99

110

115

Number of male employees

385

411

449

483

507

Number of female employees

228

243

270

314

347

Number of male managers

165

159

169

176

182

Number of female managers

19

19

20

24

26

Percentage of female employees

37.2%

37.2%

37.6%

39.4%

40.6%

Percentage of female managers

10.3%

10.7%

10.6%

12.0%

12.5%

Number of male new graduates

18

15

14

23

9

Number of female new graduates

10

7

15

17

13

Number of mid-career recruits

60

42

65

38

68

Average age

41.4

41.4

41.2

40.9

40.7

Length of service

8.8

8.9

8.9

8.7

8.7

8

10

11

18

18

1.6%

1.7%

1.7%

2.3%

2.0%

9

16

11

13

19

1.8%

3.1%

1.9%

2.1%

2.8%

9

15

9

4

13

Number of rehired employees

8

14

6

4

12

Percentage of rehired employees

88.9%

93.3%

66.7%

100%

92.3%

Percentage of acquisition of paid leave

68.1%

68.0%

62.7%

68.1%

75.5%

Average overtime hours

12.5

12.2

15.1

14.0

15.2

JCR Pharmaceuticals Co., Ltd. (non-consolidated)

Number of employees

Number of persons with disabilities
Percentage of employment of persons with disablities
Number of retired employee
Turnover rate
Percentage of acquisition of paid leave

42

Sustainability Report 2023

Society
FY2018FY2019FY2020

FY2021

FY2022

Number of parenting leave takers

8

9

13

4

11

Number of childcare leave takers

8

11

16

12

26

Percentage of acquisition of parenting leave andchildcare leave (female)

100%

100%

100%

100%

100%

Percentage of acquisition of childcare leave (male)

35%

14%

7%

33%

67%

Percentage of returning to work after childcare leave

100%

100%

100%

100%

100%

Number of recipients of childcare subsidy

27

30

24

30

30

Number of short-timers

16

15

20

24

28

Number of savable paid leave takers*

—

260

112

319

125

Number of occupational accidents (without leave of absence)

2

2

8

7

8

Number of occupational accidents (leave of absence)

0

0

0

1

0

Number of Group training sessions

15

15

8

16

— *2

Total Group training attendance time

135

126

60

112

— *2

Total cost of English language training (millions of yen)

570

720

1700

2,790

3400

Number of meetings with investors (Japan)

103

137

105

124

155

Number of meetings with investors (Overseas)

20

21

12

9

22

JCR Pharmaceuticals Co., Ltd. (non-consolidated)*1 Instituted since FY2019*2 FY2022 employee training was reassigned to compliance training

Sustainability Report 2023

43

Data
As of March 31, 2023

Corporate Governance
FY2018FY2019FY2020

FY2021

9

9

9

9

11

Outside directors

4

4

4

4

6

Female director

1

1

1

1

1

14

13

15

15

13

98.39%

99.15%

99.26%

98.52%

99.30%

5

5

5

5

5

5

5

5

5

5

13

13

12

13

13

98.46%

100%

100%

98.46%

98.50%

6

6

6

6

5

Outside directors

1

1

1

1

0

Female director

0

0

0

0

0

2

2

2

2

2

2

2

2

2

2

7

6

4

4

5

2

2

1

1

1

Advisers

1

2

2

2

2

Number of meetings held

4

7

7

6

10

95.00%

90.24%

100%

100%

94.12%

2

1

2

2

2

96.67%

93.75%

100%

95.83%

100%

1

2

1

5

9

100%

100%

100%

99.88%

90% or more

1

1

1

1

1

88.1%

92.6%

91.5%

95.4%

95.4%

JCR Pharmaceuticals Co., Ltd. (non-consolidated)

Borad of Directors

Board of Directors Meeting

Directors

Number of meetings held
Attendance rate

Audit & Supervisory Board

Audit & Supervisory Board members
Independent Outside Audit & Supervisory Board members

Audit & Supervisory Board
Meeting

Number of meetings held

Management Committee

Directors

Attendance rate

Audit & Supervisory Board members
Independent Outside Audit & Supervisory Board members
Corporate Officers
Female Corporate Officers
Advisory Committee for

Nomination, Compensation, Etc. Attendance rate
Compliance Control Committee

Number of meetings held
Attendance rate

General compliance training

Number of times held
Attendance rate

Stress check

Number of times held
Attendance rate

44

Sustainability Report 2023

FY2022

Environment
FY2018FY2019FY2020

FY2021

Research Division

4,512.009

4,464.587

4,602.125

5,068.261

5,857.852

Production Division

7,678.841

7,606.577

8,408.000

9,012.701

9,731.705*3

Research Division

6,389.000

5,870.000

5,280.000

2,097.000

8,735.000

Production Division

37,660.000

38,901.000

36,061.000

53,004.000

43,374.000

Research Division

0.07

0.06

0.06

8.16

201.67

Production Division

604

611

709

734

858

CO2 emissions (t)*Business activities

—

426

244

112

— *1

GHG emissions (t)*2

Scope 1

—

—

—

2,232

3,315

Scope 2

—

—

—

5,136

5,266

Scope 3———78,16879,466

2.47

2.40

8.62

15.36

6.14

JCR Pharmaceuticals Co., Ltd. (non-consolidated)

Electricity (1,000kWh)
Water (m3)Gas (1,000m )3

1

BOD (t)FY2022*1 Data obtained beginning in FY2019 (FY2022 data is Included in GHG emissions Scope 1)*2 Data obtained beginning in FY2021*3 Includes 136.793 of electricity derived from renewable energy sources (data from August 2022 to March 2023)

Sustainability Report 2023

45

Headquarters: 3-19 Kasuga-cho Ashiya, Hyogo, 659-0021 Japan Tel: +81-(0)797-32-1995

2024.1