Value Creation Story

Material Issues

Company-wide Action Plan and KPIs for Material Issues
KPIs

Promotion of Sustainability

Material Issues

Company-wide Action PlanKPIs
1. Reduction of CO2 emissions: Reduction of 46% from FY2013 (FY2030)
2. Reduction of total waste

The ASKA Pharmaceutical Holdings Group pursues ESG
management so that it can solve social issues through its
business. In this, we are guided by the corporate
philosophy, “Contribute toward the improvement ofpeople’s health and progress in society through thedevelopment of innovative products.”
The Group has identified 11 material issues (mostimportant issues). Of these, “contribution to women’s
health“ and “contribution to animal health” are particularlyrelevant material issues for the Company and are being
promoted by the entire Group. We will also work to address
climate change by reducing CO2 emissions throughexpanded use of solar power generation and theintroduction of clean energy, and strengthen our humancapital by developing and acquiring human resources
capable of responding to new businesses and changes inthe business and social environment, and by creating aworking environment in which a diverse range of humanresources, including women, career professionals, andseniors, can play an active role.
In April 2023, we established a new Sustainability
Promotion Section in the Corporate Planning Department
with the aim of further accelerating our efforts. We willcontinue to meet the expectations of our stakeholders byplacing sustainability at the center of our management,
striking a balance between maximizing the economic valueof the Company and enhancing its social value.

EEnvironmental protection
and continuous reductionof environmental impact

1. All employees conduct business with integrity guided by ourcorporate philosophy.
2. We provide a stable supply of high-quality pharmaceuticals withexcellent efficacy and safety.

2 Ensuring Complianceof nitrogen on the environment by promoting low-protein feed) umber of in-house recruitment system and interdepartmental transfers (number of
1. N
career challenges)
of elective training courses taken: Next-generation leader training
2. Number

Human resources
development

Development of human resources
to realize growth strategies

 ptimization of working hours: Promotion of the use of annual paid leave as planned, guidance
1. O

Senior Managing Member of the Board of Directors,
Representative Director, in charge of Sustainability
ASKA Pharmaceutical Holdings

for promotion of the use of annual leave, provision of annual leave (taken hourly), etc.

2. Health management initiatives
3. Promotion of various working styles: telecommunicating, telework, flextime, short-time

As a trusted company, we will increase profitability throughsound business practices and fulfill our social responsibilities
as a good corporate citizen.

Creation of an environment that
promotes understanding of theorganization, sympathy, andmotivation to take action, andachievement of work-life balancethat respects the health and diversityof our employees

Stakeholders’interests

 romotion of women’s advancement in active roles (FY2024 target):
5. P
Percentage of female managers (15%)
Percentage of female medical representatives (20%)

6. Promotion of active roles for diverse human resources
7. Measures to support development of the next generation: Maternity leave (utilization
rate 100%) / Childcare leave for male employees (utilization rate 100%)

8. Support for medical representatives to take maternity leave and childcare leave

3 Respecting Human Rights
1. W
 e respect the human rights of all people affected by ourbusiness practices.
2. W
 e respect the diversity of our employees and strive to foster a safe
and comfortable corporate culture.

(implementation of reintegration programs, social gatherings, etc.)S

1. A
 s a good corporate citizen, we communicate with the local communityand broader society while striving to contribute to the world.

Creation of innovative
products

Expansion of pipeline throughopen innovation

Expanding accessto healthcareContributions to specialty areas bytaking advantage of our own strengths

1. Promotion of in-house research themes
2. Reinforcement of alliance activities
 rovision of comprehensive information on specialty areas (Ob/Gyn, thyroid)
1. P

2. Promotion of accurate information and raising disease awareness
3. Early identification of diseases through activities to promote testing and diagnostics
4. Early detection of disease through non-invasive measurement kit

5 Preserving the Environment

 ontribution to women’s healthcare by providing products for each of women’s life stages
1. C

1. W
 e participate in the realization of a sustainable society throughenvironmental preservation and by practicing environmental
management.

2. New initiatives for women’s healthcare

Contribution towomen’s health

Total support for women’s health

3. Promotion of the advancement of women through activities to raise awareness on
health and diseases

5. Activities to raise awareness among families and partners about women’s health issues
1. Promotion of animal welfare

Contribution toanimal health

Environmental

Most
important

Environmental protection and continuous reduction ofenvironmental impact

Material issuesSocial
Human resources development
Employee engagement
Creation of innovative products
Expanding access to healthcare

Importance to ASKA Pharmaceutical Holdings Most
important

Corporate governanceContribution to creation of asociety where people and animals
can coexist

Stable supply ofhigh-quality products evelopment and provision of non-invasive measurement kit products using body hair
3. DContribution to women’s healthContribution to animal health
Stable supply of high-quality products
Promotion of proper use of products

1. Reinforcement of supply chain management
Ensuring product quality and stableprocurement and supply

2. Implementation of appropriate GMP audits
3. Implementation of appropriate GQP (ensuring that a quality assurance system is in place)
1. Implementation of appropriate clinical trials (GCP compliance) dequate implementation of GVP and RMP
2. A

Promotion of proper useof products

Ensuring safety and providing
information on proper use

Secure compliance with laws andregulations, enforcement of compliance ompliance with GVP and guidelines for activities for provision of sales information
3. C issemination of materials and knowledge to promote proper use, and strengthening
4. Dproduct education for medical representatives, etc.
 rompt provision of latest information through website
5. P

1. Fostering corporate culture and climate that respect healthy business ethics

Background to Identification of Material Issues

2. Ensuring real equality of shareholders

Corporate governance

The Group aims to become a total healthcare company witha strong foundation as a specialty pharma company. To
contribute to solving social issues and building a sustainable
society, we established the ESG Committee in 2021 andidentified 17 most important issues as our material issues. In2023, we revised our material issues in response to the evelopment and provision of products useful for maintaining the health of companion animals
2. D

4. Promotion of biodiversity

Governance

ASKA HD REPORT 2023

work, etc.

4. Implementation of regular stress checks and surveys for engagement

4. Sexual education initiatives for younger generation

Mapping of Material Issues

16

Number of selective training courses taken: Training to promote the advancement ofwomen (career development of female employees)/other selective training as a measure tosupport the autonomous learning of employees
Expenditures per employee (for education)(career development of female employees)

Atsushi Maruo

Materiality MapImportant

5. Environmentally conscious business operations

3. P romote the implementation of internal and external hierarchical training/selective training

4 Contributing to Communities and Society

1. We are thoroughly committed to corporate ethics and to compliancewith all laws and regulations.
2. We maintain fair relationships with stakeholders and conducttransactions that are fair, transparent, and based on free competition.
3. Regarding the protection of personal information, we manage theinformation in compliance with our privacy policy.

4. Promotion of environmental measures eduction of emissions of environmentally harmful substances (reduction of the impact
7. R

Employee engagement

1 Supplying High-Quality Pharmaceuticals

3. Improvement in recycling rates

6. Reduction of the use of natural resources

Basic Policy for Sustainability
The Company has established CSR guiding principles andworks for the ongoing growth for the Group as a whole andto contribute to society.

Environmental protection, continuous
reduction of environmental impact,
and promotion of environmental
managementchanging business and social environment. We recognize“contribution to women’s health” and “contribution toanimal health” as distinctive material issues for theCompany. We will strive as a Group to solve social issues
and enhance our corporate value by addressing these andother material issues.

Establishment of corporate system forcontinuous growthG

3. Social contribution activities that lead to solving social issues
4. Constructive dialogue with stakeholders
 ppropriate disclosure and explanation of management strategy, performance, financial
5. A
condition, capital policy, etc.

Secure compliance withlaws and regulations,enforcement of compliance

Thorough maintenance of complianceand fostering an organizational climatethat emphasizes reliability

 ompliance system mainly promoted by Group Compliance Promotion Committee
1. C ontinuous implementation of preventive measures against serious incidents
2. C

ASKA HD REPORT 2023

17