Eisai
Value Creation Report
2023

Eisai Co., Ltd.
4-6-10, Koishikawa, Bunkyo-ku, Tokyo 112-8088, Japan
https://www.eisai.com

Effectively Realizing
the Social Good
The front cover expresses Eisai, which continues to strive beyond the preconceived notions
to realize the hhc concept and continue to create social impact.

Published in September 2023

Corporate Concept
We give first thought to patients and the people in the daily living
domain, and increase the benefits that healthcare provides tothem as well as meet their diversified healthcare needs worldwide.

Corporate Objective
A human health care company capable of making a meaningful
contribution under any health care system while observing thehighest legal and ethical standards in business activities.

Eisai conducts its business under the corporate concept of giving “first thought
to patients and the people in the daily living domain, and increase the benefits
that healthcare provides to them as well as meet their diversified healthcare
needs worldwide”.
This corporate concept is summarized by the term “human health care(hhc)”. We believe that it is important for each employee to first develop
proximity to patients and see the situation from their perspectives to learn toempathize with thoughts and feelings that they might not always express inwords. All employees are recommended to spend 1% of their working hours
with patients and the people in the daily living domain. Our corporate concept
is understood and internalized by each employee within the Group, both inJapan and overseas. This understanding is then shared and implemented in thedaily business activities of all Eisai employees, and serves to effectivelytranscend nationalities, national borders, gender, and age.
Eisai incorporated the corporate concept into the company’s Articles ofIncorporation in 2005 and has been shared with stakeholders. In 2022, theCompany declared that it would evolve into an hhceco (hhc concept +ecosystem) company upon receiving approval at the Annual General
Shareholders’ Meeting.

Charter of Business Conduct of Eisai Network Companies

https://www.eisai.com/company/philosophy/index.html

Realization of Social Good based on
Corporate Concept-based Management

Socialization with Patients

Based on the hhc concept, Eisai aims to effectively realize social good by “relieving anxiety over health” and “reducing healthdisparities”. We are working to create and provide innovative new treatments in disease areas with high unmet medical needs, suchas dementia and oncology, which we position as strategic areas of focus. In addition, as a global health initiative, we are actively
working with partners around the world to eliminate neglected tropical diseases (NTDs), which are a target of the United Nations
Sustainable Development Goals (SDGs).

Mission and Results

Sequence ofMission and Result

Eisai’s mission is the enhancement of satisfaction of patients and the people in the daily living domain andthe realization of social good, such as relieving anxiety over health and reducing health disparities, and thecreation of social value. We believe that fulfilling this mission first will generate economic value, including
revenue and profit.

Contribution

Empowering People in the Medical and Daily
Living Domains to Realize their Fullest Life

Eisai continues to evolve. The corporate concept was incorporated in the Articles of Incorporation and
was approved at the 2005 General Meeting of Shareholders. In 2022, we evolved the Articles ofIncorporation and redefined “people in the daily living and medical domains” as the main figures in our
corporate concept, the human health care (hhc) concept, and expanded the target of our contribution
from the previous “patients and their families” to “patients and people in the daily living domain”. Whileadhering to our hhc concept, our goal is to evolve into an hhceco (hhc concept + ecosystem) company
that empowers people to live their fullest lives, to further increase the satisfaction of patients and thepeople in the daily living domain through the realization of social good, such as relieving health anxiety andreducing health disparities by establishing an ecosystem model in collaboration with other industries.

Mechanism for Employees to Embrace the Corporate Concept-Knowledge Creation Activities through the SECI ModelDefine anxiety
Confirm disparity

Spending time with patients andpeople in the daily living domain

Socialization

Externalization

Internalization

Combination

Explicit

Explicit

Realization of Innovation based on Knowledge Creation Theory:
Mechanism for Employees to Embrace the hhc Concept
In order to realize our corporate concept, each and every employee at Eisai is committed to realizing
innovations that relieves patients’ anxieties over health and satisfy their health needs through their daily
work based on the “Knowledge Creation Theory” advocated by Professor Ikujiro Nonaka, Professor
Emeritus of Hitotsubashi University. In the “SECI model”, it is important to keep rotating the SECI spiral,
which consist of four modes to strategically create knowledge. By continuing to rotate the spiral of thesefour modes and repeatedly exchanging “implicit knowledge” and “explicit knowledge”, knowledge iscontinuously created and the hhc concept is realized. This is the origin of Eisai.
Eisai calls these activities “hhc Driven Innovation activities (hhc activities)”, and more than 500 hhc
activities are carried out globally each year. In addition, we hold the annual event “hhc Initiative” tocommend outstanding activities that have made significant contributions to patients and people in thedaily living domain.

Tacit

Tacit

Tacit

Explicit

To fulfill Eisai’s corporate concept to “increase the benefits to patients and the people in the daily living
domain”, what we value most is to understand the thoughts and feelings of patients and the people. The
feelings that can be expressed in words are only a part of it. We believe that we need to be aware of, feel,and empathize with the deepest feelings behind the words or the indescribable feelings of patients. To
that end, Eisai encourages all officers and employees of the Eisai Group globally to spend 1% of theirworking hours engaging in “socialization”. This means spending time with patients and the people in thedaily living domain or sharing experiences with them such as eating or working together.

Tacit

OriginOrigin of our Activities:
Knowledge Creation through the SECI Model

Explicit

Relieve anxiety
Reduce disparity
Implementation and feedback

Planning to relieve/reduce
anxiety/disparity
Reference: “The Wise Company” Ikujiro Nonaka, Hirotaka Takeuchi

Latest hhc activities

https://www.eisai.com/hhc/activity/index.html

Please refer to P38 for hhc activities in the dementia area, P40 for hhc activities in the oncology area, and P46 for hhc activities in the global health area

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4

History of Eisai
Since its founding in 1941, Eisai has strived to realize its corporate concept by cultivating a corporate culture that shares thethoughts of patients and the people living in the daily living domain and has continued to take on the challenge of delivering
innovative new drugs. By continuing to meet the expectations of our stakeholders, we will bring about social impact that leads tosustainable enhancement in corporate value.

Establishment of management baseand start of overseas expansion

Founding period

Building a foundation for
global expansion

Rapid expansion of overseas
business through two major brands

History

Focus on dementia, oncology,
and global health areas

Past medium-term business plans
Fiscal 2002-2005

Fiscal 2006-2010

Millennium
Plan

Dramatic Leap
Plan

(Yen)

4trillion

Fiscal 2011-2015
Plan Hayabusa

Fiscal 2016-2020

Fiscal 2021EWAY Future& Beyond

EWAY Current

4

Changes in PBR(after transition to consolidated accounting)(/right axis)

3trillion

As of July 31, 2023
PBR

3.22
(Maintain over 1 at all times)

Market capitalization 2,662 billion yen

2trillion
1trillion
0(Times)

1945

1950

1941 Establishment of Eisai

1955

1960

1961
Listed on the first sectionof the Tokyo andOsaka stock exchanges

Our founder, Toyoji Naito,
established Eisai and focused on
medicine creation activities,
because he was dissatisfied with
how Japan’s drug industry at thetime remained overly reliant on
imports.

1965

In the 1980s, along withestablishing a foundation
for global expansion, Eisai
took a strong step toward
global expansion.

1972

Launch of vitamin supplement
Chocola® A in Japan

Launch of vitamin supplement
Chocola BB® tablets in Japan

Launch of peripheral
neuropathy treatment
Methycobal® (injection) in
Japan

1961

1974

Launch of stomach medicine
Saclon® in Japan

Launch of metabolic
cardiotonic agent Neuquinon®
in Japan

Launch of natural
vitamin E
supplement
Juvelux® in Japan

Launched proton pumpinhibitor Pariet® in Japan(1997), Europe (U.K.)(1998), and the U.S.
(1999). Product name in
the U.S. is Aciphex®

1985

In 1966, Yuji Naito, whobecame the second presidentof the company, actively
pursued overseas expansion by
establishing local subsidiaries
in Southeast Asia.

1952

1997

1980

Establishment of R&D basesin Japan, the U.S. and Europe

1951

1977

1975

Late 1960’s
Persuing overseas expansion

Product and R&D history

Not currently being sold.

1970

Dementia Area
（See Page 25）

Oncology Area
(See Page 39)

Global HealthArea(See Page 45)

2

1

Changes in Eisai Market Capitalization (Based on Issued Shares)※(/left axisc)

1941

3

1990

1995

2000

2005

1992 Establishment ofcorporate concept“human health care”

Accelerating overseas expansion
with the launch of two major brandsof groundbreaking new drugs

Haruo Naito, the third-generationpresident (currently Representative
Executive Officer and CEO),established the company’s corporate
concept of “human health care (hhc)”.

Overseas expansion was accelerated by thelaunch of Alzheimer’s disease treatment
Aricept® and the proton pump inhibitor
Pariet®/AcipHex® in 1997＊1.

2010

2015

2020

2025

Strengthening the compliancepromotion system

Enhancement ofcorporate governance

Evolution into
an hhceco company

In 1999, an officer in charge ofcorporate ethics was appointed, and in
2000, the ENW (Eisai Network
Companies) Charter of Business Conduct
and the Code of Conduct were
established.

In 2004, the Company transitioned to a company
with a nominating committee, etc. and a majorityof outside directors were appointed. In 2005, thecorporate concept was stipulated in the Articles
of Incorporation (approved at the General
Meeting of Shareholders).

In 2022, the Company declared its
evolution into an hhceco (hhc concept+ ecosystem) company and wasapproved by a special resolution of
the General Meeting of Shareholders.

1983

1997

2007

2014

2023

Initiated drug discovery researchin the area of dementia at
Tsukuba Research Institute

Alzheimer’s disease treatment
Aricept® was launched (the U.S.
and Europe (U.K.) in 1997, Asia
(Thailand) in 1998, and Japan
in 1999)

Concluded a license agreement on
Alzheimer’s disease treatment
BAN2401 regarding research anddevelopment, manufacturing, andcommercialization with BioArctic AB

Entered into joint development
and co-promotion agreementwith Biogen Inc. for Alzheimer’s
disease treatment

Alzheimer's disease
treatment LEQEMBI®
received full approval from
FDA

1987

2010

2015

2018

2021

Anticancer drug research anddevelopment group wasestablished at Tsukuba
Research Institute

Anticancer agent Halaven
was launched in the U.S.

Entered into strategic alliancewith Merck & Co., Inc., Rahway,
NJ, USA regarding anticancer
agent Lenvima®

Entered into exclusive strategic
partnership agreement with Bristol
Myers Squibb for joint development
and co-commercialization of
MORAb-202®

Anticancer agent Lenvima waslaunched in the U.S., Japan andEurope®

LEQEMBI®

2010年

2012

2013

2020

2022

Eisai and WHO formed apartnership on Neglected
Tropical Diseases (NTDs) for the
first time in JapanThe only Japanesepharmaceutical company toparticipate in the “London
Declaration”, aimed ateliminating 10 NTDs

The lymphatic filariasis treatment, DEC
tablets manufactured by Eisai is the first in
the world to receive WHO pre-certification
as a treatment for an NTD and provision
free of charge (price zero) was initiatedCollaboration with Bill & Melinda
Gates Foundation, pharmaceuticalcompanies, etc. to create
therapeutic drugs and vaccines for
COVID-19 and future pandemics

Signing of “the Kigali
Declaration”, aninternational public-private
partnership to eliminate
NTDs

Lenvima®

Diethylcarbamazine (DEC) tablets※We rely on the IIRC-PBR model (Yanagi model): “Shareholder value = long-term market capitalization = book value of shareholders’ equity (BV) + market value added (MVA)”. Corporate value is calculated from “financial
capital”, which is the book value of shareholders’ equity, and non-financial capital, which is the MVA that exceeds PBR 1 (“intellectual capital”, “human capital”, “manufactured and social capital” and “natural capital”.)
and the total market capitalization is considered to be shareholder value. We also believe that there is a certain relationship between long-term market capitalization. (See P65)
＊1 Regarding the expiration date of loss of exclusivity, Aricept® expired in 2010 (the U.S.), 2011 (Japan), 2012 (Europe), and Pariet® expired in 2010 (Japan), 2012 (Europe), and 2013 (the U.S.).

5

Eisai Value Creation Report 2023

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6

Eisai at a Glance
Eisai concentrates its management resources in three areas. We continue to take on challenges without compromise to continue
creating social impact as a result of our efforts to realize the hhc concept.

Financial Indicators

Social impact targets for fiscal 2025 and fiscal 2030

(As of the end of March 2023)

Social impact of LEQEMBI® (U.S.)

Revenue

744.4

Operating profit

billion yen

40billion yen

R&D expenses

173
Ratio to revenue

EPS

193.3

ROE

-0.21

billion yen

5.9

Ratio of equity
attributable to ownersof the parent

Net interested-bearing
debt/EBITDA

63.3

%

Revenue Simulation

Approximately

260

Fiscal 2030 target

billion yen

Approximately

1.8

trillion yen

See Page 32 for social impact of LEQEMBI®

DOE

%

times

Dementia
Area

23.2%

7.2

yen

Net DER

Fiscal 2025 target

Social impact of free provision of DEC tablets＊

%

-1.9

GlobalHealthArea

Fiscal 2025 target

Approximately

260

Fiscal 2030 target

billion yen

Approximately

280

billion yen＊ Created social impact of approximately 160 billion yen per year on average in 2014-2018

See Page 50 for social impact of free provision of DEC tablets

years

R&D Sites

Revenue Simulation toward fiscal 2032

(trillions of yen)

European Knowledge Center
Drug discovery and clinical research (U.K.)

Others (including new potential products)
Lenvima®

14 R&D sites worldwide(As of the end of July 2023)

Kawashima Industrial Park
Drug development research(Gifu, Japan)

Koishikawa Knowledge Center
Clinical research (Tokyo, Japan)
EA Pharma Co., Ltd.
Clinical research (Tokyo, Japan)

Eisai Center for Genetics Guided
Dementia Discovery (G2D2)
Drug discovery research (U.S.)

LEQEMBI®

1.0
Eisai China Inc.
Clinical research (China)

LEQEMBI®
Expect global revenue would
reach 1 trillion yen levelin fiscal 2030

0
Fiscal 2022

Fiscal 2025

Fiscal 2028

Fiscal 2030

※ The figure is a simulation based on internal estimates after adjustment of probability of success of R&D, formulated and disclosed at the March 10, 2023
Information Meeting and is not an official forecast. Please refer to the Consolidated Financial Report of each fiscal year for official financial forecasts.

7

Eisai Value Creation Report 2023

Fiscal 2032

Eisai Inc.
Clinical research (U.S.)

Knowledge Center, India
Drug development research (India)
Eisai Clinical Research
Singapore Pte. Ltd.
Clinical research (Singapore)

KAN Research Institute, Inc.
Drug discovery research(Hyogo, Japan)

Tsukuba Research Laboratories
Drug discovery and development research(Ibaraki, Japan)
Kashima Business OfficeDrug discovery and development research(Ibaraki, Japan)

Exton Site
Drug discovery anddevelopment research (U.S.)EA Pharma Co., Ltd. Research Institute
Drug discovery and development research(Kanagawa, Japan)
Eisai Value Creation Report 2023

8

Editorial Policy
The Report is positioned as an important tool for sharing andcommunicating our medium- to long-term value creation story
with our main stakeholders, such as patients and the people inthe daily living domain, shareholders, investors, employees,
and local communities. In order to communicate our value
creation, including social impact in an easy-to understandmanner, the Integrated Report, which was issued since 2015,
has been renamed the Value Creation Report since 2021.
We refer to the Value Reporting Foundation (VRF)’s
International Integrated Reporting Framework, theSustainability Accounting Standards Board (SASB) standards,
and the Ministry of Economy, Trade and Industry’s “Guidance
for Collaborative Value Creation 2.0” to communicate bothfinancial and non-financial aspects of our sustainable value
creation. In addition, we have incorporated the opinions frominstitutional investors received at the opinion exchange meetingwith outside directors, which have been held annually since
2016.
In fiscal 2022, we achieved favorable results from the Phase
III study of lecanemab for the treatment of Alzheimer’s disease,accelerated approval in the United States, and completion ofsubmissions in various countries. Furthermore, lecanemab’s
full approval in the U.S. in July 2023 has opened a newchapter in the Alzheimer's disease landscape. In June, 2022,
the Company declared that it would evolve into an hhceco (hhcconcept + ecosystem) company which was approved at theAnnual General Shareholders’ Meeting.
In line with the amendments to the Articles of Incorporation,
this report focuses on the dementia area centered on
lecanemab, the oncology area centered on Lenvima®, andglobal health, including tropical diseases, such as lymphatic
filariasis, with the aim of efficiently achieving social good. We
have compiled a medium- to long-term value creation story up
to around 2030, focusing on relieving anxiety over health andreducing health disparities in these three areas. In addition, in
response to recent changes in the business environment,materiality, which is the basis of business development in thesethree areas, has been reviewed from fiscal 2022, and mediumto long-term goals, including KPI, have been set. Items thathave been discussed and approved by the Board of Directors
are listed in this report. We have also received opinion from our
major shareholders regarding the issuance of this report. In
addition to taking on the challenge of calculating the impact ofcorporate social responsibility that does not appear in revenue
and profits, and proposing new corporate value, we havecontinued to put more effort into visualizing our non-financial
capital, such as intellectual capital and human capital. We
endeavored to provide disclosures that would allow readers tofeel that non-financial capital contributes to future financial
value through delayed penetration effects.
Furthermore, in this report, we organized and enhanced theroles of the corporate website and official social networking
sites, focusing on highly important contents identified asmateriality, and strived to enrich and improve convenience andaccessibility to those information.
We would like to continue to utilize
the Value Creation Report as a tool for
dialogue and frank exchange of opinionswith every stakeholder.

9153	Maximization of Human Resource Value

Corporate Concept “human health care (hhc)”

3	Realization of Social Good based on Corporate Concept-based
Management
5	History of Eisai
7	Eisai at a Glance
9

Editorial Policy/Contents

59	CFO Message
62	Financial Strategy
64	Visualization of Non-Financial Capital toward the Evaluation of
Eisai’s Intrinsic Corporate Value
67	Enhancement of Corporate Governance/Corporate Executives

11	CEO Message

79	Compliance and Risk Management/Internal Audit

17	Eisai’s Materiality (Material Topics)81	Business Activities with Consideration for the Global Environment

19	Key Materiality Long-term Targets, KPIs, and Risks

83	Enhancement of Information Security

21	Eisai’s Social Impact Creation Model

84	Business Activities based on Respect for Human Rights/
Sustainable Procurement

Realization of Social Good in Three Areas
25	Realization of Social Good in Dementia Area

Data Section

39	Realization of Social Good in Oncology Area

86	Major Products

45	Realization of Social Good in Global Health Area

89	ESG Index/Financial Indicators
91	Status of Shares/Corporate Information/Major Eexternal Evaluations/
Independent Assurance Report

Period Covered

Statement), which is compiled in accordance with the rules set byThis Value Creation Report covers business performance from April

the Tokyo Stock Exchange. Factors that could have a material

1, 2022 to March 31, 2023. Some sections may include information

impact on the future outlook include, but are not limited to, changes

on activities as recent as fiscal 2023 (April 1, 2023 to August 31,

in the economic environment and competitive pressures surrounding2023).

Eisai’s business environment, revisions to laws and regulations,

Reporting Organizations
Focus on highly important content, identified as materiality in themedium- to long-term value creation story

Eisai Co., Ltd. and domestic and overseas consolidated subsidiaries

with new drug development, and infringements of intellectual
property rights by third parties. Although this report contains
information on pharmaceuticals (including those under development),

Forward-Looking Statements and Risk Factors

the content is not intended for advertising or medical advice

Materials and information provided in this Value Creation Report may

purposes. In addition, further details about business risks statedcontain “forward-looking statements” based on current expectations,above are described in the Annual Security Report. This English

Human Capital Reporthttps://www.eisai.com/ir/library/annual/pdf/epdf2023hcr.pdf

A report summarizing Eisai’s directions and initiatives related tohuman capital

forecasts, estimates, business goals and assumptions that are

Report was translated from the original Japanese version. In thesubject to risks and uncertainties, which could cause actual

event of any inconsistency between the statements in the twoEnvironmental Reporthttps://www.eisai.com/ir/library/annual/index.html

A report summarizing Eisai’s directions and initiatives related toenvironmental conservation activities

outcomes and results to differ materially from these statements.

versions, the statements in the Japanese version shall prevail.

Shareholders/Investors
https://www.eisai.com/ir/index.html

Financial Reports, materials related to financial report, materials related tothe meeting, Notices of General Meeting of Shareholders, and others

medium-term strategies, intended directions and visions and are not

Corporate Information
https://www.eisai.com/company/index.html

Official SNS

Materiality to Effectively Realize Social Good

Introduces our approach to sustainability, our efforts to improve access to
medicines, as well as our goals and initiatives in the areas of environment,
society, and governance in an easy-to-understand manner.

Sustainability
https://www.eisai.com/sustainability/index.html

Corporate
websiteManagement Strategies

fluctuations in currency exchange rates, uncertainties associatedPurposes of Value Creation Report, Corporate Website, and Official SNS

Value Creation Report

Contents

Twitter https://twitter.com/Eisai_SDGs
Facebook https://www.facebook.com/EisaiGlobal
LinkedIn https://www.linkedin.com/company/eisaiglobal/

Eisai Value Creation Report 2023

Corporate information, business activities, corporate governanceand others

Moreover, the target values contained in this report merely express
an official earnings forecast. For the official earnings forecast, please

Note to Description
Generic names for drugs are given omitting the base or hydrate.

refer to the annual financial report (Consolidated Financial

Information of activities based on the hhc concept and initiatives related
to improving access to medicines, the environment, human resources,etc.

Eisai Value Creation Report 2023

10

Management Strategies

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

CEO Message
satisfaction of patients and the people in the daily living domain
by effectively realizing social good and empowering people inthe daily living and medical domains to realize their fullest lives
through the hhc ecosystem in collaboration with otherindustries. As a result, sales and profits are realized, and we
consider this order of mission and results to be very important.
In the three areas of dementia, oncology, and global health,such as tropical diseases, we have a competitive advantage
based on our long-accumulated experience. We take pride inhaving a “nautical chart” that will guide us to our destination in
the fastest and shortest way. By allocating our resources inthese three areas, we are determined that we can bringsignificant impact to society.

Creating Social Impact in theThree Areas of Dementia,
Oncology, and Global HealthRealization of Social Good in the Dementia Area
The Drug Discovery Spirit of Learning from Failure, Basedon Empathetic Relationships with People with Dementia
and their Families, Led to the Successful Development ofLecanemab (U.S. product name: LEQEMBI®)

Representative Corporate Officer and CEO

Eisai is a pioneer in the field of dementia, having developed the
Alzheimer’s disease (AD) treatment Aricept® in the late 1990s,

The New Articles of Incorporation Clearly state
to Effectively Realize Social Good
Since 1992, when we first set forth the hhc concept, we havebeen conducting management based on this concept toincrease satisfaction of patients and the people in the dailyliving domain. At the 2005 General Meeting of Shareholders,
we partially amended the Articles of Incorporation, which canbe described as the constitution of the company, and clearlystated our corporate concept with the approval of ourshareholders. In recent years, “Purpose Management”, inwhich corporate management is centered on the significanceof existence in society, has been attracting attention. However,
we are proud to be one of the pioneering companies toexemplify it ahead of others.

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Eisai Value Creation Report 2023

and has extensive experience in the AD field through its R&D
activities in this field spanning approximately 40 years. As aresult of the company’s collective efforts to develop newtreatments related to the underlying pathology of AD, we
successfully announced on September 28, 2022 that Clarity
AD, a large global Phase III study of Anti-Aβ protofibril
antibody lecanemab that enrolled 1,795 patients with early AD,

achieved its primary endpoint, demonstrating a statisticallysignificant reduction of clinical decline. Through a 6 year long
Phase II study, we confirmed the right patient disease stage,
dosage, and clinical study endpoints, and designed a Phase III
study (Clarity AD) based on these. All primary and secondary
endpoints were achieved with statistical significance andpre-specified concomitant drugs, disease stage, ApoE4 status,
and regional subclass analyses all demonstrated consistent
results and the results confirmed the hypothesis that Aβ
protofibrils are central to AD pathology. In terms of safety, it issaid to be manageable. It was a remarkable achievement thatmarked a page in the history of modern drug discovery, thebirth of a full-fledged therapeutic drug for AD, which has beena long-standing problem for humankind.
For over 25 years since the launch of Aricept®, we havebeen asked by people with dementia and their families, “Whenwill the next treatment be available?” I have never forgotten theserious expressions in their faces and sparks in their eyes.
Recognizing that it is Eisai’s mission to repay these people’s
thoughts, we have made a concerted effort to develop newtreatments related to the underlying pathology of AD. After
experiencing many setbacks, the results came to fruition.
When I received the news that Eisai had received accelerated
approval from the US FDA on January 7, 2023, a tear fell frommy left eye. The power of the FDA-approved stamp isimpressive, and various events and people’s faces came to mymind.
The main factor in the success of lecanemab is thepresence of employees with a sprit to never give up on drug

Eisai aims to realize social good effectively

Social good

Effectiveness• Relieve anxiety over health• Reduce health disparities• Low-cost capital/fund raising• Interactions between diverse talents• Leverage muti-technology• Collaboration through the ecosystem model

Furthermore, at the General Meeting of Shareholders heldin June 2022, with the approval of all shareholders, Eisai clearlystated in its Articles of Incorporation that we would “effectively
achieve social good by relieving anxiety over health andreducing health disparities”. Eisai’s mission is to increase theEisai Value Creation Report 2023

12

Management Strategies

discovery. In addition, the driving force is that we havecontinued to see the same future as people with dementia
through empathy based on trust. We have built empathy
through socialization with people with dementia and theirfamilies over the years based on the hhc concept. The
relationship with those who believed in Eisai and waited forinnovative treatments and solutions led us to a fundamental
sense of mission, a sense of responsibility to accomplish
overcoming failures, and a sense of ownership. The history of
AD research at Eisai is a history of failure. Development ofinvestigational γ-secretase modulators E2012 and E2212
and β-secretase inhibitor elenbecestat was discontinued.
However, because we had been seeing a common future withpeople with dementia, we could not run away. Despite
repeated failures, we wrote our learnings, like drawing anautical chart, and we believe it helped us navigate lecanemab
to success in the shortest and fastest time possible.
Striving to Obtain Global Approvals andExpand Access to Lecanemab
We are making every effort to obtain approval in countries
around the world aiming to deliver lecanemab to people with
AD and their families as soon as possible. We received full FDA
approval of lecanemab on July 6, 2023, and broad Medicare
coverage from the Centers for Medicare and Medicaid Services(CMS) on the same day in the U.S. Lecanemab is the first drug
to receive full approval and broad insurance coverage as an AD
disease-modifying treatment in the U.S. Submissions havealready been completed in Japan, EU, China, Canada, Great

Lecanemab Subcutaneous formulation Pen type auto-injector

13

Eisai Value Creation Report 2023

Britain, and South Korea and we plan to obtain approvals
outside the U.S. in fiscal 2023. Projects to maximize the valueof lecanemab are also steadily ongoing. Development of a
subcutaneous formulation that can be administered at home
and a maintenance dosing regimen after removal of Aβ are
underway, and we plan to submit both projects in fiscal 2023.
In addition, the AHEAD 3-45 study (Phase III study) for
preclinical (asymptomatic) AD is also ongoing.
On the other hand, there are various challenges other than
new treatments and approval in order to eliminate healthconcerns related to early AD. For example, promoting
awareness and understanding of early AD, developing anddisseminating simple tools to raise awareness of brain health,increasing the number of physicians who can perform clinicaldiagnosis of early AD, establishing referral routes, achieving
insurance reimbursement for amyloid PET/CSF diagnosis, andpromoting early adoption of blood-based biomarkers, which
are simpler Aβ testing methods. These are not solutions thatcan be solved by our efforts alone, but we believe that the
emergence of powerful therapeutic agents will be a major
driving force and contribute to their realization.
Prioritizing Transparency of Lecanemab
We place top priority on ensuring transparency and earning thetrust of society regarding lecanemab.
First, we have worked to ensure the transparency of clinicalstudy data. Detailed data of Clarity AD was presented at the
15th Annual Conference on Alzheimer’s Disease Clinical Trials(CTAD) on November 30, 2022 and was published on thesame day in the New England Journal of Medicine, a peerreviewed journals that is thought to be one of the world’s
most prestigious medical journals. It is extremely rare for a
conference presentation and a paper to be published in a
medical journal on the same day, and the highly transparent
disclosure of highly objective clinical trial data was highly
evaluated.
We also worked to ensure transparency regarding the U.S.
pricing process. First, based on simulation research resultsfrom clinical studies published in peer-reviewed journals, theannual value of LEQEMBI® per person in the U.S. society wasestimated at $37,600. In addition, based on the forecast for
the number of people taking medication, we assumed that

Realization of Social Goodin Three Areas

LEQEMBI® would generate tens of billions of dollars in social
impact across the U.S. society over the next 10 years (westrive to create a social impact of approximately 1.8 trillion yen
across the U.S. for a single year in fiscal 2030). We have set a
price that is intended to give back approximately 60% of
earned social impact to public stakeholders, such as U.S.
society, including patients, healthcare workers, payers and thecountry, and approximately 40% is distributed to private
stakeholders, such as Eisai employees and shareholders. This
portion will be the net sales of LEQEMBI®. The initial annual
price was set at $26,500, considering an initial dosing regimenof once every 2 weeks followed by a maintenance dosing
regimen of once every 4 weeks. We believe that Eisai is thefirst company in the global pharmaceutical industry to
implement value-based pricing in a highly transparent manner.
When we received accelerated approval in the U.S. on January
7, 2023, we issued a press release and explained the details of
this pricing directly to the media and analysts/investors througha press conference. This was one of the first attempts in theindustry to establish highly transparent pricing in the U.S.
based on the concept of social value and was highly evaluatedby many stakeholders. We will continue to implement highly
transparent pricing in countries other than the U.S.
Aiming to Replicate the Success of Lecanemab,
Progress is Being Made in the Development of
New Potential AD Treatments
To repeat the success of lecanemab, we are steadily
proceeding with the development of new AD treatments.
Clinical studies are steadily ongoing for investigational antiMTBR tau antibody E2814, TrkA-binding synapse regenerating
agent E2511, and anti-EphA4 antibody E2025. In addition,
discovery research is ongoing focusing on homeostasis
mechanisms that maintain the robustness of the brain at theEisai-Keio University Dementia Innovation Lab (EKID), an
industry-academia collaboration base jointly established with
Keio University. Exploratory research for drug discovery targets
is also underway. We believe that our development pipeline in
the dementia area is the most comprehensive in the world. We
believe that dementia will become a treatable and curable
disease, and we will do our utmost to develop innovative
therapies and expand access to them.

Materiality to Effectively Realize
Social Good

Data Section

Creating Solutions through the Dementia Ecosystem
In the new Articles of Incorporation, which was amended inJune 2022, we have added the mission of empowering people
in the daily living and medical domains to “realize their fullest
life through an hhc ecosystem developed through collaboration
with other industries and groups”. In addition, we have added“providing information and services that contribute to theawareness and prevention of diseases” utilizing digitalization
and IT beyond the framework of the stable supply ofpharmaceutical products and communication of information.
The hhc ecosystem that we are considering here will provide
optimal solution package for each disease stage for people inthe daily living and medical domains, is created through R&D
based on accumulated in-house data, digital technologies, andAI solutions.
The backbone of this business model is data. For example,
disease genome data, clinical study data exclusively owned by
Eisai, real-world and Personal Health Record (PHR) data andothers. R&D plays a major role in value creation by inputtingthese data. Currently, we consider diseases as a continuum andare conducting research and development based on humanbiology evidence (DHBL: Deep Human Biology Learning). From
there, we aim to create various solutions for people in various
disease stages. The solutions we deliver include not only real
medicine, but also digital medicine and disease progression
prediction models.
Collaboration with various partners, including other industries,
academia and start-ups is essential. For example, in creating
solutions in the field of dementia, we are collaborating with theinsurance industry on dementia insurance, with financial
companies to reduce the risk of freezing financial assets, andwith the automobile industry in developing programs for safe
driving for the elderly. Cooperation with local governments is
also important in creating communities where people withdementia can live safely and with peace of mind. Taking
advantage of the strengths that created lecanemab, we will
strengthen the dementia ecosystem by further enhancing
collaboration with other industries and create a significant social
impact as a platformer that provides various solutions in thedementia field.

Eisai Value Creation Report 2023

14

Management Strategies

Eisai hhceco Model (Dementia)
Social impact (People living with AD, their families, caregivers, HCPs, payers, governments, shareholders and employees)
Healthy

High-risk(Healthy)
Solution
Inclusion• Patient advocacy groups• Local governments

Collaboration• Washington University in St. Louis• J-ADNI 1• e-65.net• NouKNOW® 3• Online community/consultation• PET/CSF• Blood-based biomarker

Onset/treatment

Follow-up/prognosis(Onset/treatment)
Solution(Follow-up/prognosis)
Solution• Real Medicine• Digital Medicine• Prediction of risks for progression• Visualization of treatment effect• Building an inclusive society• Introducing facilities for
elderly people• ePRO 4

Industry collaboration
Collaboration

Eisai Solution (Value) Creation Scheme
Value Creation based on human biology evidence,by viewing disease as a continuum

Collaboration

Genome data fordisease

Genome data bank
• Japan Health Research Promotion
Bureau(High-risk)
Solution• Prediction of risks for onset• Disease awareness• Genetic test
• Wearable/healthcare app(obtaining PHR 2 and others)

Academia• University College London• Keio University

The People

Provisionof data• Genome data for dementia,
which is expected to expand

Data fromclinical studies• Lecanemab 5 Clarity AD(most recent and important findings of AD)• Elenbecestat• Aricept®

• Financial• Communication• Fitness• Automobile• FoodStart-up companies• Bio/drug discovery venture
Collaboration

RWD 6/PHR data
• Follow-up data of people
received treatment• Medical examination/bio data
• Cohort data

• Insurance• DTx 7 venture

Monitoring/
PHR partners
Provisionof data

Potential funding through sustainable financing with social impact targets as KPIs
＊1 Japanese Alzheimer’s Disease Neuroimaging Initiative＊2 Personal Health Record＊3 Self-checking tool (non-medical device), with individuals can check their cognitive functions by themselves with quantified brain performance data through simple card games
utilizing PC or tablet-type device＊4 Electronic Patient Reported Outcome＊5 Antibody for Alzheimer’s disease produced as the result of a strategic research alliance between Eisai and BioArctic. Collaboration with Biogen＊6 Real World Data
＊7 Digital Therapeutics

Aiming for Drug Discovery Targeting Refractory Cancer
by Leveraging Experience in Developing Two In-house
Developed Anti-cancer Agents

In addition, we are making steady progress in thedevelopment of E7386, an investigational first-in-class middle
molecule agent for refractory cancers that are resistant toLenvima® and Keytruda®, and antibody-drug conjugate (ADC)
MORAb-202 for the treatment of refractory cancers with highunmet needs and for which cancer immunotherapy is noteffective. We entered into a joint development agreement with
Bliss Biopharmaceutical (Hangzhou) Co., Ltd. (China) with
option rights for a strategic alliance on antibody-drug conjugate(ADC) BB-1701 in May 2023. Under the new R&D system
Deep Human Biology Learning drug discovery system thatlaunched in October 2022, we are working on thedevelopment of new anti-cancer treatments for refractory
cancers. Based on this, we will build a disease ecosystem forspecific cancer areas in the future.

• Medical device• PHR app/medical checkup

Realize the Articles of Incorporation

Realization of Social Good in theOncology Area

Realization of Social Goodin Three Areas

drug discovery science and organic synthetic chemistry.
Regarding Lenvima®, the development of a combination
therapy with Keytruda® is accelerating, and clinical study
results for first-line and second-line treatment for non-small celllung cancer and first-line treatment for endometrial cancer, etc.
are expected to be obtained and submitted to regulatory
agencies in fiscal 2023.

Realization of Social Good in the
Global Health Area
Promoting Price Zero Business for DEC Tablets that
Embodies the Articles of Incorporation
Since 2013, we have provided more than 2 billion DEC tablets(diethylcarbamazine), a treatment for lymphatic filariasis (LF),
free of charge to 29 countries around the world. I decided toenter this business when I served as chairman of the IFPMA(International Federation of Pharmaceutical Manufacturers
Associations). I believed that only a pharmaceutical company

15

Eisai Value Creation Report 2023

Data Section

could manufacture and supply DEC tablets, which is in a stateof depletion worldwide. We set the price at zero, based on our
Articles of Incorporation, because we believed that if theobjectives of the business were correct, sales and profits
would follow as a result. We assumed that if LF patients regain
their health and are able to engage in productive activities as aresult of DEC tablets, economic wealth will increase, a future
market will be formed, and the social good stated in the
Articles of Incorporation will be realized. In addition, the Eisai
logo is printed on the DEC tablets and the company name isprinted on the package, which we believe will enhance ourcorporate brand in countries where we do not have apresence. We are planning to expand our business in Africa,
and we believe that this price zero business will be a solid
foundation for realizing social good in Africa.
Eisai’s global health efforts go beyond LF. Utilizing
partnerships with GHIT (Global Health Innovative Technology
Fund) and DNDi (New Drug Development Initiative for
Neglected Diseases), we are actively promoting the effective
development of therapeutic drugs for mycetoma and malaria.
Taking advantage of the experience and knowledge that wehave cultivated by providing DEC tablets free of charge, we willcontinue to promote initiatives aimed at realizing social good in
the global health area. We would like to play a role as a
producer of an NTDs (Neglected Tropical Diseases) drug
discovery ecosystem which is responsible for the creation oftherapeutic drugs for NTDs, the cornerstone of global health.

Formulation of New Materiality to Effectively
Realizing Social Good
We have formulated new materiality to effectively realizing
social good through the hhc ecosystem and it has been
approved by the Executive Board. In addition to efforts indementia, oncology, and global health areas, we have identified
maximization of human resource value and financial strategies
as important material issues, set long-term goals, KPIs, andlaid out risks for fiscal 2030. We have also identified material
topics that may lead to a negative impact on corporate value incase efforts are insufficient. With this materiality as ourcompass, we will work to effectively realize social good. We
ask for the continued understanding and support of our
stakeholders.

In the area of oncology, pharmaceutical companies around theworld are vigorously promoting the development of new anticancer agents, and as groundbreaking new agents appear one
after another, cancer treatment is making remarkable progress.
However, there are still intractable cancers with low survival rates
depending on the organ and cause of onset. We have a history
of approximately 35 years of drug discovery activities inoncology and have delivered two in-house developed products,
Lenvima® and Halaven® to the global community. We will further
contribute to society by creating therapeutic drugs for refractory
cancers, leveraging our capabilities backed by our strengths inMateriality to Effectively Realize
Social Good

The signing ceremony of a joint statement with the WHO on the price zero supplyingof DEC tablets(Left: Dr. Margaret Chan, Director-General, WHO)

September 2023

Eisai Value Creation Report 2023

16

Management Strategies

Eisai’s Materiality (Material Topics)

Process of Identifying New Material Topics to Effectively Achieve Social Good

Process 1

Process 2

Process 3

Topic Identification

Prioritization

Long-term Targets, KPIs, and Risks

Reorganized from 21 to 15 items• Previous topics “creating innovative
medicines”, “offering solutions that go
beyond providing medicines”, “strategic
partnerships”, “improving access to
medicines”, and “appropriate pricing” wereconsolidated into “realization of social goodin the three strategic areas (dementia,
oncology and global health)”• Previous topics “talent management tosupport business strategy”, and “providing
a suitable working environment andhealthcare support to assist selfactualization” were consolidated into
“maximization of human resource value”• Previous topics “stable supply and quality
assurance”, “supply chain management”,
and “initiatives against counterfeit drugs”
were consolidated into "stable supply ofhigh-quality products”• Previous topics “compliance-aware
promotion”, and “prevention of bribery andcorruption” were consolidated into
“compliance and risk management”• Eisai has identified strengthening our
response to cybersecurity incidents, bywhich we have also been affected, as animportant initiative, and identified“enhancement of information security” as a
new topic• Horizontal Axis: In addition to social impact,which is the positive value impact on society(P64), the impact on Eisai’s financial value isevaluated based on the strength of thecorrelation between KPI and PBR for eachmateriality(P65)• Vertical Axis: Estimated level of interest for
long-term investors based on daily
engagement with Eisai. In addition, direct
engagement with domestic and foreign
long-term investors (in principle, holders of 1
million or more shares of the Company's stock
for at least three years) were conducted todetermine the order of priority for long-term
investors. In addition, we estimated the levelof interest of patients and their families aswell as the local community based oninteractions through “Socialization” (P3-4)
and the “Dementia Collaboration Agreement”(P38), which we implement as the heart of ouractivities. Furthermore, surveys, etc. wereconducted to confirm agreement on thepriorities from many employees, after whichprioritization is finalized

Five of the material topics identified are ofparticular importance and can enhance our
intrinsic value through our accelerated
efforts. For these five topics, we haveestablished KPIs and risks to measure theprogress of our efforts, in addition to
long-term objectives through fiscal 2030

Significantly high• Enhancement of corporate governance(Enhancement of management
oversight function)• Enhancement of information disclosure• Enhancement of information security• Create new drugs and maximize their value• Provide solutions by collaborating with overhealth industry partners

Reduce health disparities• Improve access to medicine• Realize appropriate pricing

Pursue effectiveness• Strategic partnerships

2. Realization of social good in oncology area
Relieve anxiety over health• Create new drugs and maximize their value

Reduce health disparities• Improve access to medicine• Realize appropriate pricing

Pursue effectiveness• Strategic partnerships

3. Realization of social good in global health area

4.

Relieve anxiety over health• Create new drugs and maximize their value

Reduce health disparities• Improve access to medicine• Contribute through price-zeroor affordable pricing

Pursue effectiveness• Strategic partnerships

Maximization ofhuman resource value• Penetration of hhc philosophy• Improve employee engagement• Promote diversity

5. Financial strategy

Process 4

High

Consideration and Approvalby the Executive Board,
Confirmation by the Board of Directors
Material topic identification and long-term
objectives, KPIs, and risks were decided after
deliberation and approval by the Executive
Board and confirmation by the Board of
Directors

Relieve anxiety over health＊prioritizing the interests of long-term investors. These objectives and methods remain unchanged. However, we havechanged the name of the vertical axis so that it can be correctly understood that it is intended to create long-term benefits
not only for long-term investors, but also for a wide range of stakeholders.
In accordance with the above two axes, we have identified 15 material topics. Among them, we have identified five topics of greatinterest to our stakeholders, especially long-term investors, that have a positive social impact and correlation with PBR, which we
believe will enhance our intrinsic corporate value through our accelerated efforts, and have established long-term objectives, KPIs,
and risks for fiscal 2030. The new material topics and long-term goals, KPIs and risks were set after deliberation and approval by the
Executive Board and confirmation by the Board of Directors. We will conduct reviews on the progress of these activities and aim toensure their promotion through the PDCA cycle.

Eisai Value Creation Report 2023

Data Section

1. Realization of social good in dementia area

Stakeholders’ interests 2,3

Eisai has been disclosing materiality since the Integrated Report 2016 in order to clearly identify priority issues to be addressed tomaximize corporate value over the medium to long term through the realization of our corporate concept. Our materiality has undergone
a series of improvements and received a certain degree of recognition from external stakeholders, but in accordance with the Articles ofIncorporation, amended in June 2022, material topics have once again been identified in order to effectively achieve social good.
The horizontal axis has been changed from “Impact on Eisai’s Business” to “Eisai’s Intrinsic Corporate Value (social
impact + financial value)”. We understand the importance of creating social impact and creating financial value by working
toward the effective achievement of social good, and we have reflected this concept in the new material topics. In addition,
the vertical axis has been renamed from “Long-term investors’ interests” to “Stakeholders’ interests”. This axis is intended
to create long-term benefits for all stakeholders, including patients and their families, shareholders, and employees. Basedon the concept that it is efficient to focus on long-term investors, who are beneficiaries of residual income, in order tosustainably maximize corporate value in a way that satisfies all stakeholders＊1, we have adopted a method of identifying and

17

Materiality to Effectively Realize
Social Good

Materiality toward Effective Realization of Social Good through the hhc Ecosystem

Formulation of a New Materiality• Stable supply of high-quality products• Compliance and risk management• Protection and enhancement of intellectual
property• Business activities based on respect forhuman rights• Business activities with consideration for the
global environment• Safety management for products• Ethical and transparent drug creation
activities
High(Insufficient efforts lead to impairmentof corporate value)• Maximize mid- to long-term intrinsic corporate value(social impact + financial value)

Long-term objectives, KPIs and risks were set up
for 1 to 5 key material topics

Eisai’s Intrinsic Corporate Value(social impact + financial value)Significantly high(Confirmed correlation with PBR
and positive impact on society)

Establishment of Action Plan
Promotion of Initiatives

Annual Review and Update
Annually review progress of initiatives
and business environment
and update as necessary

Realization of Social Goodin Three Areas

PDCA Cycle＊1 Value Maximization, Stakeholder Theory, and the Corporate Objective Function (Michael C. Jensen, 2001)＊2 Stakeholders: Long-term investors (shareholders), patients and their families, employees, and the community＊3 For the Material topics other than 1 to 5, the importance of the Material topics within the same quadrant are equal

Eisai Value Creation Report 2023

18

Management Strategies

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Key Materiality Long-term Targets, KPIs, and Risks
Materiality

Fiscal 2025 targets and KPIs®＊1

Early establishment of LEQEMBI
maximization

business and its value

Realization of• Early approval and realization of reimbursement in all five regions

Social Good in• Contribution to approx. 100,000 people living with AD a year globally and generation of

Dementia Area

social impact of approx. 260 billion yen in the U.S.
• Approval of subcutaneous formulations and maintenance dosing regimen• Collaborate with partners to quickly realize the use and dissemination of blood biomarkers
as the definitive diagnosis tool for Alzheimer’s disease®

Realization of

Value maximization of Lenvima

Social Good in• Obtain new indications in KEYTRUDA®＊3 combination therapy• Contribute to approx. 160,000 people a year globally and aim for annual revenue of 500
billion yen level＊4

Oncology Area

Lymphatic filariasis (LF)

Realization ofSocial Good in
Global Health Area

• Provide diethylcarbamazine (DEC) tablets in India, the world’s largest epidemic country.
Expand and strengthen support for elimination activities through holistic initiatives.
Complete mass drug administration (MDA) in 24 other countries＊8• A total of approx. 29 million people would benefit from DEC tablets, resulting in social
impact generation of approx. 260 billion yen annually

Mycetoma• Complete submission for E1224 in Sudan. Conduct epidemiological surveys to establish
journey for patients with Mycetoma, a disease which is not yet well understood

Malaria

Maximization of
Human Resource
Value

Establishment of a

• Expand access to LEQEMBI® to contribute to approx. 900,000 people living with AD a

supports andyear globally. Generation of social impact of approx. 1.8 trillion yen in the U.S.

people’s entire life fromhealthy to high-riskstate, onset / treatment

E2814＊2

system infrastructure and increased competition in themarket• R isk of not achieving expected profits due todiscontinuation or delay in development of nextgeneration dementia treatments• R isk of delays or inefficiencies in R&D, manufacturing,of people affected by the disease to 10 million people a year globally, in collaboration withprognosis, by playing theand commercialization activities due to disagreements

other industries

role of a producer

with partners

Contribution to patients with refractory cancers through newsubsequent Lenvima® projects• Submit earlier for MORAb-202＊5, E7386＊6 and BB-1701＊7• Accelerate clinical introduction of new projects based on efficient drug discovery
approach, utilizing Deep Human Biology Learning (DHBL), to submit for early approval• Acquire products or co-develop and co-commercialize with partner companies to enhancepipeline and maximize its value

Cure of refractory
cancers by creating
innovative treatments,
expansion of access,and realization of
prevention based on apredictive model ofcancer onset

LF• Complete MDA in 30 countries＊8, including in India, through provision of 3.9 billion DEC
tablets• A total of approx. 31 million people would benefit from DEC tablets, resulting in social
impact generation of approx. 280 billion yen annually

Mycetoma• Facilitate cross-sectoral collaboration to establish a journey for patients with mycetoma• Obtain approval of E1224 in Sudan and establishing a sustainable delivery method• Contribute to people living in endemic countries other than Sudan by providing E1224

Increased employee engagement

Increased employee engagement• Percentage of employees who are highly engaged to the company in the Global• Percentage of employees who are highly engaged to the company in the Global
Engagement Survey: More than 90% (fiscal 2022 results: 85%)

Enhancement of women’s participation to incorporate diversity

Enhancement of women’s participation to incorporate diversity• Ratio of female managers in Japan 15% (fiscal 2022 results: 11.9%)• Ratio of female managers in Japan 30% (fiscal 2022 results: 11.9%)

Employee Impact

Employee Impact• Human resource investment efficiency 82%• Human resource investment efficiency 87%

Maximization of intrinsic corporate value (social impact + financial
value) while the company is in rapid growthPursue an optimal capital structure while ensuring financial
soundness• ROE: 25% level, DOE: 15% level• Ratio of equity attributable to owners of the parent: 60% level, Net DER: - 0.3 – 0.3,

Increase financial robustness and secure growth investment
capacity• Impact on Equity: 2 times level• Equity attributable to owners of the parent: more than 1 trillion yen, ratio of equity
attributable to owners of the parent: 70% level, Net DER: - 0.3 – 0.3• Risk of not obtaining the expected profits due todiscontinuation or delay of the development of new
indications for Lenvima® or the development plan of
new projects• Risk of delays or inefficiencies in R&D, manufacturing,and commercialization activities due to disagreementswith partners

Elimination of diseases
by creating treatments
and expanding access,and contribution to
reducing healthdisparities• Risk of delays in elimination activities due to thedeprioritization of LF countermeasures in endemic
countries• Risk of delays in elimination activities, drug
development, review processes due to new infectious
disease pandemics or conflicts• Risk that duration of clinical trials would be longer thanplanned due to inadequacies in the clinical trial
environment characteristic of neglected tropicaldiseases and malaria

Enhancement ofcorporate value
through solutions andinnovation brought by
maximizing thestrengths andcharacteristics ofdiverse humanresources• Risk of difficulty in succession for important global
positions• Risk of difficulty in securing and developing humanresources that match company management directions

Maximize mid- tolong-term intrinsic
corporate value (social
impact + financial
value)• Risk of not earning the expected revenue from
LEQEMBI® and Lenvima®
• R isk of not earning the expected revenue due todiscontinuation or delay of development plans for thesubsequent products• R isk of impairment of goodwill and intangible assets
acquired through acquisitions and the introduction of
products and development

Malaria• 100% penetration of corporate concept (fiscal 2022 results: 96%)

• In principle, pay dividends within the range of free cash flow on a multi-year level and aim• Risk that LEQEMBI® ’s market penetration would not be
achieved as expected due to limitation of healthcareof disease, follow-up/

Penetration of the corporate concept hhc

Achieve both stable dividends and investment for growth

Major risks• Provide new solutions that contribute to health and prevention that support the daily lives• 100% penetration of corporate concept (fiscal 2022 results: 96%)

Credit rating: Single A levelencompasses theclinical trials, and submit for multiple projects including the anti-MTBR tau antibody

Penetration of the corporate concept hhc• Impact on Equity＊9: 0.65 times level

dementia ecosystem that

• Create next-generation dementia treatments following LEQEMBI®, initiate late-stage• Submit for new treatments and achievement of clinical Proof of Concept of a new drugcandidateEngagement Survey: More than 90% (fiscal 2022 results: 85%)

Goal

Realization of a world where people can live with peace of mind
when they are diagnosed with Alzheimer’s disease• Initiate clinical trials of a new drug candidate

Expansion of intrinsic corporate value (social impact + financial value)by expansion of contribution through LEQEMBI® and DEC tablets

Financial Strategy

Fiscal 2030 targets and KPIs

to maintain a dividend of 160 yen＊1 Antibody for Alzheimer’s disease produced as the result of a strategic research alliance between Eisai and BioArctic. Collaboration with Biogen. Generic name: lecanemab＊2 Investigational. Discovered as part of research collaboration between Eisai and University College London. ＊3 KEYTRUDA® is a registered trademark of Merck Sharp & Dohme
Corp., a subsidiary of Merck & Co., Inc., Rahway, NJ, USA. Projects for Lenvima® are under joint development with Merck & Co., Inc., Rahway, NJ, USA＊4 Possibility of success not adjusted ＊5 Investigational. Co-development with Bristol Myers Squibb. Generic name: farletuzumab ecteribulin (FZEC)

19

Eisai Value Creation Report 2023

＊6 Investigational. Collaboration with PRISM BioLab ＊7 Entered into a joint development agreement with Bliss Biopharmaceutical Co., Ltd. with option rights for a strategic
collaboration in April 2023 ＊8 Based on the WHO LF elimination target by 2030 ＊9 An indicator to evaluate whether the company is efficiently generating social impact. The sum of
the social impact of LEQEMBI® and DEC tablets was divided by Equity. Calculation was based on those two important products in which the estimation of social impact was completed
Eisai Value Creation Report 2023

20

Management Strategies

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Eisai’s Social Impact Creation Model
As stipulated in the Articles of Incorporation, Eisai’s mission is to increase the satisfaction of patients and people living in the dailyliving domain by realizing its corporate concept. To achieve this mission, we are concentrating six capital, including human capital andintellectual capital, into three areas: dementia, oncology, and global health. Additionally, to maximize Eisai’s intrinsic corporate value(social impact + financial value), we are prioritizing efforts to address 15 material topics. By providing the drugs and solutions createdthrough these corporate activities to the world as output, we aim to effectively realize social good such as “relieving anxieties overhealth” and “reducing health disparities”. Financial values such as sales and profits are created because of our mission of increasing

Business Model

Outcome

Effectively realize social good though
hhc ecosystem

Sustainable corporate
value creation(Improvement of PBR)

InputIntellectual capital• Pipeline mainly in the three areas of dementia,
oncology and global health• Abundant experience and knowledge inmedicine creation activities• Knowledge and experience to realize
expansion of access in each country
worldwide• Intellectual property of Lecanemab, Lenvima®
and development projects

the satisfaction of patients and people living in the daily living domain. We believe that the order of mission and results is important,based on our corporate concept. By effectively realizing social good, we assume that as an outcome, we will be able to create
sustainable corporate value, that is, improve PBR, by creating financial value and further enriching the six capitals. As a result of ourefforts to realize our corporate concept, we will create social impact in three areas and further expand our social impact by reinvesting
the capital we have accumulated in excess of the capital we have invested. This is Eisai’s social impact creation model.

(Relieving health anxieties and reducing health disparities)

Intellectual capital• Improve the value of the pipeline• Improve experience andknowledge of drug discovery
activities

Human capital (fiscal 2022)ma

g y (P 5 3 -)

l st

rate
as

c

h

xim

i z a tion of hu m an resour

Increase satisfactionof patients and the people
in the daily living domain

cia

ue

a

• Introduction of renewable energy• Reduction of CO2 emissions through biomass
plastic packaging• Introduction of internal carbon pricing• TCFD Financial impact analysis due to climatechange• Actively invested in research and development
for future growth(Ratio to revenue 23.2%)• Equity attributable to owners of the parent
company: 800 billion yen(Ratio of equity attributable to owners of theparent company: 63.3%)• Net cash 165.4 billion yen(Net DER -0.21)

Eisai Value Creation Report 2023

• Improving employee motivation
and accumulating experience andknowledge• Improving human capital
investment efficiency(Fiscal 2030 target 87%)

Social Impact of lecanemab
for Alzheimer’s Disease
treatment (U.S.),
approximately 1.8 trillion yen(fiscal 2030)(P32)• Improve the value of corporate
brand• Expansion of partnerships

an

al
ce v

Human capitalSocial capitalnd

Manufactured capital

Natural capital

Financial capital(End of fiscal 2022)

21su• 9 in-house manufacturing sites worldwide• Utilization of manufacturing technique andfacilities, which partner companies possess

Global health
area
(P45)

ity

Manufactured capitalri alDeveloping partnerships that can improve andaccelerate the probability of success indevelopment and streamline development andcommercialization costs

resources into
three areasfinSocial capital

MissionDementia
Oncologyarea
area
Concentrating
management
(P25)
(P39)

15 m ate

Corporate Concept(P1)• Ratio of employees who sympathize with hhc
concept (96%)• Ratio of employees who are highly engaged(85%)• Human resource investment efficiency basedon the Employment Impact Statement (80%)

Social Impact

Stable supply of high-quality
pharmaceuticals

Natural capital

Output• Achieve SBT 2.0˚C target(fiscal 2030)• Achieved 100% renewableenergy usage rate(fiscal 2030)• Achieve carbon neutrality(fiscal 2040)

Providing medicines and solutions that
contribute to the realization of social good
ResultCreate financial value(revenue, profit, etc.)

Financial capital
Maximize shareholder value (fiscal
2030 target: ROE 25% level, DOE
15% level)

Social Impact of freeprovision of DEC tablet for
lymphatic filariasis treatment,
approximately 280 billion yen(fiscal 2030)(P50)

Eisai Value Creation Report 2023

22

Realization of Social Goodin Three Areas
This part explains how we are creating social impact through theefficient realization of social good in the three areas.

Dementia
area

Concentrating
management
resources into
three areas(P25)

Oncology
area

15 M

th er

s

(P39)

xi m

iz a tio n of h u m a n re s o u rc e v al u

do

an
tr

at

(P45)

lit

Ma

y,

ri a

y

eg

at e

Global health
area
e,

n
fina

cia

ls

Management Strategies

Realization of Social Good in Dementia Area

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

but PET scans are expensive and may be difficult to accessin rural towns and cities. Meanwhile, a CSF analysis is

Keisuke Naito
Senior Vice President
Chief Strategy & Planning Officer
Chief Ecosystem Officer
Global Alzheimer’s Disease Officer

The Significance of Eisai’s Fight to Relieve
Anxieties Surrounding Alzheimer’s Disease
Alzheimer’s disease (AD) is a progressive and fatal
neurodegenerative disease. It is said to account for
approximately 70% of dementia cases in elderly people. AD
begins with slow cognitive and functional deterioration andthen eventually leads to total loss of independence in the final
stage. AD progresses from an asymptomatic preclinical stage
to mild cognitive impairment (MCI), to dementia (mild,moderate, and severe), and ultimately to death. It is the 5thleading cause of death in people aged 65 and over in the U.S.
Furthermore, as the disease progresses, it has a large, ongoing
economic impact on people living with AD, their families, andsociety, and the so-called unpaid expenses of caregiving
provided by people such as family members (informal carecosts) are estimated to reach amounts that greatly exceed
health care and public care costs.
In the dementia area, Eisai began the research anddevelopment of Aricept®, the pioneering drug that was aninnovative therapy in symptomatic treatment in the 1980s, andin the 40 years since then, we have been working to develop
treatments and solutions for people living with AD and theirfamilies. Even when facing the complexity and challenges ofAD, which caused many companies and researchers to giveup the pursuit, for the sake of people living with AD and theirfamilies, we never gave up. Combined with our sharedcommitment to the mission of human health care (hhc), thispassion continues today as our pursuit of scientific research.
LEQEMBI® (lecanemab) was fully approved by the U.S. FDA
on July 6, 2023. On the same day, broad insurance
reimbursement was also approved by the CMS for those whomeet the FDA’s indication. This enabled us to deliver
LEQEMBI® to many more people living with AD. We believethat being able to deliver the first drug in the world that works
on the root cause of AD is a ray of light in the darkness tomany people living with AD. But the launch of LEQEMBI® isonly the beginning. We are convinced that the knowledge
gained as a result of the lecanemab Phase III Clarity AD clinical25

Eisai Value Creation Report 2023

study deepens our understanding of the disease andrepresents a major advancement in the treatment of AD, andwe continue to pursue further possibilities for the treatment of
the disease. By advancing research and development inprevention and treatment which may change the lives ofpeople suffering from AD, we believe we can provide drugs
that improve brain health and ultimately prevent
neurodegeneration before it occurs.
Furthermore, in order to relieve the anxieties over health ofpeople living with AD, we are aiming to resolve the hurdles
surrounding AD with the hhceco solution package.

Future Initiatives for Lecanemab Value
Maximization
Eisai’s strategic challenge for AD treatment is achieving asimple patient journey. There are chasms at every stage, fromawareness of the disease to treatment and care, and webelieve it is essential to come up with solutions to addresseach one.
•	Lack of awareness of the disease: Because it is difficult todifferentiate between early AD symptoms and age-related
cognitive decline, we are implementing initiatives to increasesocial awareness of the disease and we will build anenvironment in which cognitive function screening during
medical examinations by family doctors will be more routine.
•	Barriers related to disease screening and referrals: There
are no standardized tools and consensus for clinicallyassessing and diagnosing AD. We will build a dementiarelated ecosystem and an environment that facilitatesaccess to cognitive function assessments, such as local
government dementia examinations and comprehensive
brain health assessments in which people can consult andobtain a clinical diagnosis wherever they live.
•	A diagnosis that places a large burden on people living withdementia: The administration of lecanemab requires an Aβdiagnosis, which confirms the degree of Aβ aggregation in
the brain. Currently, diagnosis is performed using an
amyloid PET scan or a cerebrospinal fluid (CSF) analysis,

cheaper than an amyloid PET scan and also more useful,because it can measure biomarkers other than Aβ, but it
requires an invasive lumbar puncture, so some people livingwith dementia may hesitate to undergo this test. In order toachieve a simple patient journey, therefore, there is a
growing need for a definitive diagnosis using a blood Aβtest. We are working together with diagnostic device
manufacturers and others to improve the diagnostic
process and environment.
•	Lack of solutions for people living with AD who are ineligiblefor disease-modifying treatments (DMT) such as lecanemab:
With a view to supporting brain Aβ-negative people andpeople with moderate/severe AD who are ineligible fortreatment with disease-modifying drugs, we want to provide
solutions that will relieve their anxieties through multiple
approaches.
•	Starting and continuing treatment: There is a risk of poor
adherence to treatment and perception of efficacy due toadverse events. In order to resolve these chasms, we areestablishing solutions for managing adverse reactions andindicators to monitor the efficacy impact of lecanemab.
•	Burden of regular dosing: In order to simplify the patient
journey even more, we are developing a lecanemab
subcutaneous formulation with an autoinjector and amaintenance dosing regimen. The subcutaneous
autoinjector formulation will enable people living with AD toadminister lecanemab at home and the maintenance dose
regimen may reduce the frequency of the drug
administration.
Eisai serves as the lead of lecanemab development andLecanemab subcutaneous formulation Pen type auto-injector

regulatory submissions globally with both Eisai and Biogen Inc.
(the U.S.) co-commercializing and co-promoting the productand Eisai having final decision-making authority. Fiscal 2023 is
an important year to deliver lecanemab to even more people
around the world. We also plan to develop other lecanemab
formulations which may reduce the burden on people livingwith AD and move forward with other developments in many
pipelines, in order to support the entire patient journey forpeople living with AD.
Lecanemab has the potential to have a truly significant
impact on the lives of many people living with AD and theirfamilies, and considering the expected number of people in the
U.S. to whom we will contribute, we project the creation of asocial impact of about 1.8 trillion yen in fiscal 2030. Our vision
is that lecanemab will contribute to slowing progression to thelate stage of the disease by prolonging the early-stage period
and contributing to enabling people living with AD and theirfamilies to continue doing what they are doing and enjoying thepresent moment.

Expectations for Next-Generation AD Treatment (Disease Modifying Treatment for AD)
Illustration of Treatment Efficacy Expectedfrom Next-Generation Alzheimer’s Disease Treatment
Next-generation Alzheimer’s disease treatment
Cognitive function

Relieving the anxieties over health of people
living with dementia by maximizing the valueof LEQEMBI® and providing solutions

Mild cognitive
impairment (MCI)

Existing treatments

Mild AD
Moderate AD
Severe AD

Typical progress of AD
Age

The next-generation AD treatment, lecanemab, which isbased on the Aβ hypothesis, targets early AD (MCI due to
AD + mild AD) and preclinical AD. Regarding existing AD
therapeutic drugs, symptomatic treatments including
in-house developed Aricept® have over 20 years of history inthe market, and their efficacy and safety have been
established. Even if symptomatic treatments are used
continuously, the decline in cognitive function is inevitable
after a certain period of time, as indicated by the blue line in
the figure, and these treatments do not have the effect ofslowing or stopping the progression of the disease.
Therefore, there has been a demand for the next-generation
AD treatment such as lecanemab, which is able to delay theonset of AD or suppress the decline of cognitive function fora long period of time.

Eisai Value Creation Report 2023

26

Management Strategies

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

SWOT Analysis in the Dementia Area
Expectations for AD Treatment Opened by Lecanemab

Dr. Sharon Cohen
MD FRCPC
Toronto Memory Program

I have been a behavioral neurologist and involved in
Alzheimer’s clinical trials for 30 years, and I’ve seen the ups
and downs of our field and the challenges in drug
development, but never wavered in my passion to movethe field forward and to bring hope to patients.
When people are identified at the very early
symptomatic stage of Alzheimer’s disease, what we callthe mild cognitive impairment stage, we really haven’t had
treatment options for them. They have to wait to progressto the dementia stage before they’re eligible for theapproved symptom-enhancing treatments. That justdoesn’t seem right and is not the way we handle otherdiseases. We want to catch a disease early and intervene
early in the hope of keeping people well.
Now, having something that’s appropriate for this earlystage, the pre-dementia stage of Alzheimer’s, is so
important. It brings huge hope, it brings an option topeople that they haven’t had before. We absolutely needmore options in treating this disease and being able toslow it down rather than just modestly improve symptoms
for a time, which is all we’ve had, specifically for thedementia stage, we can go beyond that now.
The results of the Clarity AD study are incredibly
meaningful for a number of reasons. We haven’t had adrug approved that so consistently demonstrates that it
can slow down disease progression at an early stage.
What it means for patients is the things they’re able to donow, driving, shopping, banking, whatever it is they’re
doing, living at home, involved in family life, they will beable to do for a longer time. That’s so important forfamilies. It’s important for patients. It’s also important forour healthcare system. It is at the later more severe stagesof the disease that not only is the burden on family andpatients greater but hospital visits, long-term care costs,
other services are needed from the medical system. Thatbecomes really challenging.
I am really pleased that we now have a foothold. We
have a drug option that is suitable for the early stages of
disease and that we will build on this. We haven’t cured
Alzheimer’s disease, but we’ve taken a substantial step
forward. I’m so grateful to Eisai for their commitment toAlzheimer’s disease over many years. It takes Eisai, it takes
investigators and their teams. It takes patients and families
pioneering with us. This feeling that we are a community
united in a mission to bring better treatments forward is so
powerful. To have positive trial results is so meaningful toall of us. I’m truly grateful. Thank you.

Strengths

Weaknesses●The extraordinary enthusiasm of Eisai’s employees, developed over yearsof sharing thoughts and feelings with people living with AD and theirfamilies, for contributions in the dementia area
●Industry-leading rich R&D pipeline in the dementia area
●Abundant experience and knowledge of drug creation activities anddisease awareness-raising activities in the dementia area
●A wealth of early AD data obtained from lecanemab research●Global strategic alliances that enable increased probability of successand accelerated development with optimization of development andcommercialization expenses●The need for a large amount of R&D expenses
because developing new drugs is particularly
difficult and large-scale clinical studies are
required●Insufficient experience in the development of
non-drug treatment methods such as genetherapy and digital medicine

Opportunities

Threats●Expansion of market for dementia treatments as population ages
●Improvements in the environment surrounding people living withdementia triggered by the passing of the Dementia Basic Act (Japan)●Expansion of potential market as dementia diagnosis technology
improves●Growing needs for well-being/prevention and personalized medicine●Expansion of partnerships accompanying growing expectations for thedementia ecosystem●Limitations of healthcare system infrastructure
and competing products entering the market●Entry of big tech companies involved indeveloping solutions and building ecosystems●Increasing pressure to lower drug prices as
governments promote policies to reduce drug
cost

Value Creation Story of the Dementia Area
Goal
Aim to build a dementia ecosystem that supports and encompasses the people’s entire life from healthy to high-risk state, onset/
treatment of disease, follow-up/prognosis, by playing the role of a producer

Dr. Cohen Talks about Lecanemab’s Clinically Meaningfulness“Delay of Disease Progression Using Disease Simulation, Slope Analysis”
Using modeling simulations based on the results of theClarity AD study, the diagram below shows that lecanemab
treatment delays progression to the severe stage by anaverage of two to three years compared with standard ofcare, and that earlier initiation of treatment with lecanemab

Standard of careStandard of care+ lecanemab

Mild ADMCI

MCI

may have a greater impact on delaying diseaseprogression. These results show the clinicalmeaningfulness of lecanemab in preserving the valuable
time of people living with AD.

Moderate AD

Mild AD2.71 years

2.95 years

2.24 years

Early establishment of LEQEMBI® business and its value maximization• Early approval and realization of reimbursement in all five regions＊1•	Contribution to approx. 100,000 people living with AD a year globally and generation of social impact of approx. 260 billion
yen in the U.S.
•	Approval for subcutaneous formulations and maintenance dosing regimens•	Collaboration with partners to quickly realize the use and dissemination of blood biomarkers as the definitive diagnosis tool
for Alzheimer’s disease

Fiscal 2030 targets and KPIs

Severe AD

Moderate AD

Fiscal 2025 targets and KPIs

Severe AD

Realization of a world where people can live with peace of mind when they are diagnosed with Alzheimer’s disease•	Expansion of access to LEQEMBI® to contribute to approx. 900,000 people living with AD a year globally. Generation of social
impact of approx. 1.8 trillion yen in the U.S.
•	Creation of next-generation dementia treatments following LEQEMBI®, initiation late-stage clinical trials, and submission for
multiple projects including the anti-MTBR tau antibody E2814＊2•	Provision of new solutions that contribute to health and prevention that support the daily lives of people affected by thedisease to 10 million people a year globally, in collaboration with other industries＊1 The U.S., Japan, EMEA, China, Asia and Latin America＊2 Investigational. Discovered as part of research collaboration between Eisai and University College London

27

Eisai Value Creation Report 2023

Eisai Value Creation Report 2023

28

Realization of Social Goodin Three Areas

Management Strategies

Materiality to Effectively Realize
Social Good

Data Section

Good Results for Lecanemab in a Large-Scale Phase III Study (Clarity AD Study)
quality of life of people living with AD and reduction of the
Key secondary endpoints also showed statisticallyAβ species and lecanemab targets
Neurotoxic forms
Monomers

Oligomers

Fibrils

Protofibrils

significant results. After administration of lecanemab, reductionof amyloid accumulation was observed after three months, andamyloid PET scan results showed that, based on quantitative
criteria, 68% of subjects became amyloid-negative. ADASCog14＊2 at 18 months of treatment showed a 26% slowing of
decline in cognitive function (mean difference: -1.44;
P=0.00065). ADCS MCI-ADL＊3 showed a 37% slowing of

SolubleInsoluble

Lecanemab binding profile(Darker color = stronger binding)Strongest binding

decline in activities of daily life (mean difference: 2.016;
P<0.00001). In these two endpoints, the difference in treatment
effects compared with the placebo group was confirmed after
six months of administration, and grew over time.
Based on these results, maintenance of the health-related

burden on caregivers (suppressed by 23–56% compared withthe placebo group) were observed. This means that evidence
related to cognitive function, daily living function, diseaseprogression, health-related quality of life, caregiver burden, andso on has been gathered, and it has been proven thattreatment with lecanemab delivers meaningful benefits topeople living with early AD and their families, health care
professionals and society.
The Clarity AD study was the first in the world to prove theAβ hypothesis and reduce the decline of cognitive function. It
reduces the anxieties of people living with AD and is a major
step forward in the future development of AD treatments.

Reduction of Aβ in the brain by lecanemab administration (Centiloid)

indicator which evaluates the overall severity of dementia,
which was set as the primary endpoint, the group receiving
lecanemab showed a 27% reduction in clinical decline
compared with the placebo group. Significant reduction inclinical decline was confirmed at six months of treatment andextended over time. (Difference of mean change from baseline
at 18 months: -0.45, P=0.00005.) Secondary endpoints
similarly showed highly significant results compared with theplacebo group. Consistent results were obtained through all

primary and secondary endpoints, and the subgroups (race,
ethnicity, comorbidities) showed consistency in clinical efficacy.
The results of the Clarity AD study are clinically meaningful
based on comprehensive evaluations, such as cognition
function, quality of life, the burden on care partners, and theeffect of treatment on the reduction in clinical decline from theperspectives of people living with AD, care partners, andclinicians.
As for the safety evaluation results, lecanemab was shown
to be well-tolerated, and the most common adverse reactions
included infusion reactions, ARIA and headache. The ARIA
incidence was within the expected range, while the incidenceof symptomatic ARIA, such as headache, confusion, and visual
disturbance, was low. ARIA-E (brain edema) developed in theearly phase of treatment and generally disappeared within fourmonths. For these adverse reactions, we have initiateddeployment of Understanding ARIA, a training program tospread knowledge about ARIA management, and we believethat this will enable simple monitoring of side effects in people
living with AD who are being treated with lecanemab.

100Amyloid reduction

Lecanemab is an antibody for Aβ protofibrils, which aresoluble aggregates of Aβ that are involved in AD and thought
to be toxic to neurons, produced through collaborative
research with BioArctic AB (Sweden). In the Clarity AD study,
which targeted early AD (MCI + Mild AD), lecanemab showedstatistically significant reduction of clinical decline in all
endpoints and in terms of safety, showed a profile of amyloidrelated imaging abnormalities (ARIA) incidence that was within
expectations.
As for the efficacy of the Clarity AD study, in the Clinical
Dementia Rating–Sum of Boxes (CDR-SB)＊1 score, an

-10

★★★★

-20
★★★★

-30
-40
-50
-60

★★★★

Placebo
Lecanemab★★★★

****p<0.0001

0

3

6

Placebo (N): 344
Lecanemab (N): 354

303
296

286
275

Effect of lecanemab administration on suppressing the deteriorationof cognitive function (ADAS-Cog14)

0.4

★★

0
★★★★

Worsening

0.8

4

3
849

824

-4

Placebo
Lecanemab-5*p<0.05； **p<0.01； ***p<0.001； ****p<0.0001

0

3

6

9

12

16

-6

18

*p<0.05； **p<0.01； ***p<0.001； ****p<0.0001

6026% slowing decline at 18 months
Difference in treatment effects comparedwith placebo group grew over time

828

798

9
Month
813

779

12

-10

779

765

15
767

738

18
757

714

18

Placebo (N): 796
Lecanemab (N): 783

783
756

739
716

707
676

37% slowing decline at 18 months
Difference in treatment effects comparedwith placebo group grew over time
10

0

6

12
Month

10

*p<0.05; **p<0.01; ***p<0.001;****p<0.0001

Placebo (N): 875
Lecanemab (N): 859

0

★★★★

-10
＊1 A -20
scale that assesses the severity of dementia over a wide range of stages. Six areas—memory,orientation,★★★★
judgment and problem solving, community affairs, home andhobbies, and personal care—areassessed based on medical examinations of people living with AD and information from their families and caregivers. The total score of the★★★★
-20
six-30areas is the CDR-SB score, and CDR-SB is also used as an appropriate item for evaluating the effectiveness of treatments targeting the early stages of AD.
＊2 The most widely-used testing method in AD clinical trials all over the world. It is used as a test of early AD, including MCI,
and assesses 14 items: Word Recall, Following★★★★
-40
Commands,
Constructional Praxis, Naming Objects
and Fingers, Ideational Praxis, Orientation,-30
Word Recognition, Remembering, Comprehension of Spoken Language, Word★★★★
Finding Difficulty, Spoken Language Ability, Delayed Word Recall, Number Cancellation and Maze Task.
★★★★
-40 state of activities of daily life is evaluated based on questions to the＊3 A -50
scale for evaluating the activities of daily life for people living with MCI, in which the recent actual★★★★
partners of people living with MCI about 24 items.
-60

29

Placebo
Lecanemab

5

★★★★

-3

Month

Placebo
Lecanemab

0

Eisai Value Creation Report 2023

★★★

★★★★

1.6

★★★★

-2

★★★

1.2

★★

-1

★★★★

3

6

★★★★

205**
210**

★★★★

1

Worsening★★

27% slowing decline at 18 months
compared with placebo group(p=0.00005)

259
276

★

0

Worsening018

Effect of suppressing the deterioration of functioning in daily life
with lecanemab administration (ADCS-MCI-ADL)

2

Effect of lecanemab administration on reducing decline of clinical symptoms (CDR-SB)

12

Month

0

3

6

12

18

（N）Placebo: 344（N）Lecanemab: 354

303
296

286
275

259
276

205**
210**

★★★★

-50
-60

Eisai Value Creation Report 2023
0

3

6

12

18

30

Realization of Social Goodin Three Areas

Management Strategies

Materiality to Effectively Realize
Social GoodThe Number of People Living with AD to Whom Lecanemab Contributes Will Reach 900,000 a Year in Fiscal 2030

The Social Impact of Lecanemab in the U.S. will Reach About 1.8 Trillion yen in Fiscal 2030

Based on the number of people between the ages of 50 and
84 who are suspected to have early AD and taking into
account the rate of clinical diagnosis and Aβ diagnosis ofpeople living with AD, and the respective medical environmentsof each country, etc., eight years from now in 2030, Eisai
estimates that approximately 2.5 million people living with AD
will be eligible for AD disease modifying treatments. including
lecanemab, and approximately 3 million will be eligible ten
years from now in 2032. After taking into account the market
share with AD disease-modifying drugs other than lecanemab
and the dropout rate during the treatment period, we estimatethat approximately 900,000 people living with AD will bereceiving lecanemab globally in 2030.

When setting the price of LEQEMBI® in the U.S., Eisai
considered three factors: social value, the sustainability of thehealth care system, and affordability for people living with AD.
In fact, when we calculated the yearly social value in U.S.
society using the AD Archimedes Condition Event simulation(AD-ACE model)＊2, the estimate was 37,600 USD (Fig. 1).

Trends in prevalence of people living with early AD and potential
number of people eligible for AD-DMT (global)＊1■①No. of people living with AD■⑤No. of people eligible for treatment

240 million
230 million
210 million
190 million
180 million②Examined at a medical institution
and diagnosed with early AD③Amyloid β test

26,500 USD, which is below the annual social value, with theaim of promoting access for a wider range of people living withAD, reducing financial burdens, and contributing to thesustainability of the health care system. We are also developing
a less frequent maintenance dosing regimen, which may

Approx.
2.5 million
2023(MCI due to AD and Mild AD)

on the lives of many people living with AD and their families,
and considering the expected number of people in the U.S. towhom we will contribute, we project the creation of a social
impact of about 1.8 trillion yen in fiscal 2030.
On the other hand, we set the yearly price of LEQEMBI® toApprox.
3 million

Number of people with early AD and number of people eligible for AD-DMT①Prevalence of early AD

LEQEMBI® has the potential to have a truly significant impact

2025

2028

2030

2032

As for the revenue simulation of lecanemab, running asimulation based on the assumed price in each country, with
the number of people living with AD that we calculate are
eligible for AD disease-modifying treatments as a starting point
and assuming that AD disease-modifying treatments otherthan lecanemab will also be on the market, we foresee
sufficient potential to reach the 1 trillion yen level in sales
revenue globally, including China and Asia, in fiscal 2030.

④Amyloid β positive

Lecanemab revenue simulation＊⑤Treated with AD-DMT(Trillions of yen)

Data Section

further lower the yearly cost of LEQEMBI®.
We believe that the gradual adoption of LEQEMBI®
treatment over 10 years could give back to U.S. society about
60% of the potential several tens of billions of dollars in social
impact this may have on U.S. society, including the mandatory
discounts and rebates within the health care system (Fig. 2).
We are confident that these resources will help realize new
innovations that enhance the health and quality of life ofindividuals at risk of developing or living with AD as well as theirfamilies and caregivers.
On the other hand, about 40% of the social impact of thistotal of several tens of billions of dollars over 10 years will be
accrued by employees and shareholders as Eisai’s productsales. Eisai will invest in new innovations such as the researchand development of new AD therapeutic drugs and theconstruction of an ecosystem aimed at "coexistence andtreatment" in AD community (Fig. 2).

Figure 1. Assessment of the social value of LEQEMBI® in the U.S. using the AD ACE model

Annual value per person with AD (U.S.)(QALY gained × WTP threshold) + Cost offsets＝

Time on treatmenta) QALY is an indicator showing the value of health outcomes. 1QALY represents one additional year of a person’s life at perfect health. LEQEMBI® treatment is predicted to offer an
additional 0.64 QALYs for a person with early AD over their lifetime by improving health outcomes for both that person and their caregivers.
b) The WTP threshold per QALY gained is based on 1 to 3 times the per capita gross domestic product (GDP) of the country. And a four-fold higher coverage of 200,000 USD would beconsidered in the case of a disease such as AD, which has a high social cost and severely impacts caregivers.
c) With regard to differences in total cost, the total of the direct medical and non-medical AD-related costs and the indirect costs of caregivers, including family members, was estimatedto be reduced by 7,415 USD over the lifetime for each person with early AD by treatment of LEQEMBI® compared to the standard of care. Direct costs include cost of medications,visits to medical institutions, hospitalizations, costs of residential care, community services for people living with AD. Indirect costs of caregivers, including family members, take into

We expect that with the launch of lecanemab as one
opportunity along with increasing disease awareness, clinicaldiagnosis of early AD at medical institutions will progress evenfurther. Also, with the development of a diagnostic environment
in which the presence of Aβ can be more easily diagnosed byblood biomarkers, we project that, from 2025, the number ofpeople living with AD who are eligible for AD disease-modifying
treatments will increase year by year. We assume that a moreaccessible AD diagnostic environment will be established at an
earlier stage in the U.S., Japan, and Europe, and after that,
this environment will be similarly established in China and Asian
countries due to the launch of lecanemab there.

account the monetary value for hours spent on caregiving activities.
d) With regard to the treatment period, it is assumed that treatment with LEQEMBI® will be discontinued upon progression to moderate AD or worse. The average treatment period in early

1.0

AD was estimated to be approximately 3.6 years after discounting to present value.

37,600 USD

0.0
Fiscal 2022

Fiscal 2025

Fiscal 2028

Fiscal 2030

Fiscal 2032＝

(0.64×200,000 USD)＋7,415 USD
3.6

Figure 2. Creation of social impact and giving back to society through LEQEMBI® (cumulative total for ten years)＊ The figure is a simulation based on internal estimates formulated and disclosed at
the March 10, 2023 Information Meeting and is not an official forecast. Pleaserefer to the Consolidated Financial Report of each fiscal year for official financial
forecasts.

Approx. 60%

Annual Social Value per Personwith AD (37,600 USD)×

Total Number of Persons
with AD Contributed To

SocialImpact＝ Potential several
tens of billionsof dollars

will be given backto U.S. society

Approx. 40%

accrued by employees
and shareholders asof Eisai’s product sales＊1 Internal data based on total number of persons with AD from the market demand assessment survey conducted by IQVIA (Asia and Latin America means South Korea,
Taiwan, Thailand, and Singapore, and EMEA means the U.K., France, Germany, Spain, and Italy)＊2 A.R. Kansal, et al. Alzheimers Dement (NY). 2018; 4: 76-88.

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32

Management Strategies

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Aiming to Establish a Simple Patient Journey
Clarity AD Study Using Digital Tools in the Pandemic
Through lecanemab, Eisai aims to provide a simple patient
journey in which people living with AD and people in the dailyliving domain are able to smoothly transition from the stage
when they recognize the early signs of AD and want to receive
lecanemab treatment, and recognize its clinical effects.
At the first stage, we recommend performing an easy
self-assessment of cognitive function, which can be assessedin a short-time, followed by a diagnosis by their family doctor
using a simple cognitive function scale such as MOCA
(Montreal Cognitive Assessment). We believe that, based on
the results of these assessments, the people living with AD will
be referred to a specialist, the clinical diagnosis will be
confirmed, and the Aβ test will be performed.
Amyloid PET scans and CSF analysis are used for Aβdiagnosis, which confirms the degree of Aβ aggregation in thebrain. The amyloid PET scan detects the signals of radioimaging agents that bind to Aβ, making it possible to visualize
the degree of Aβ aggregation in the brain. However, although
the amyloid PET scan provides useful information that supports
physicians’ medical judgment, it requires expensive testingfees and there are challenges in terms of access, with only alimited number of sites being able to perform the scan. On theother hand, a CSF analysis is cheaper than an amyloid PET
scan and can provide information on biomarkers other thanAβ, but it comes with another challenge, which is the fact thatit requires an invasive lumbar puncture.
Therefore, an easier Aβ diagnosis is one important step in
simplifying the patient journey. In line with the growing

popularity of lecanemab, Eisai believes that blood Aβ testing,which predicts the presence of brain Aβ pathology bymeasuring a specific analyte in the blood, has the potential toreplace the amyloid PET scan and CSF analysis, and mayachieve a more patient-friendly Aβ diagnosis. The sensitivity
and specificity of blood Aβ tests using blood biomarkers havealready rapidly improved, and we believe that, with this simple
Aβ diagnosis, the market for anti-Aβ antibodies such aslecanemab will expand at an accelerated pace from 2025.
Moreover, once lecanemab treatment begins, there is noneed for titration, making it possible to administer an effective
dose from the beginning, making the start of treatment
extremely simple.
Furthermore, we are committed to the pursuit of a simple
patient journey that seeks to maximize value for people livingwith AD who are being treated with lecanemab, such as
subcutaneous administration with the autoinjector formulation,
and a maintenance dosing regimen that is administered once
every four weeks for which we plan to achieve the regulatory
submission during fiscal 2023.
In addition, side effect management is very important. From
January 2023, we have initiated large-scale deployment in the
U.S. called Understanding ARIA, a training program to spreadknowledge about amyloid-related imaging abnormalities (ARIA)
management, and we believe that, with the participation ofmany health care professionals, this will enable simple
monitoring of side effects in people living with AD who havebeen treated with lecanemab.

The lecanemab Phase III study (Clarity AD) targeted people
living with Mild Cognitive Impairment (MCI) and mild
Alzheimer’s disease (AD), collectively called early AD. In thisstudy, we needed to randomize approximately 1,800
people living with AD at over 240 study sites (hospitals andprivate clinics) worldwide. The study participants wererecruited from among people living with AD visiting thesites, and we had the first patient enrolled into the study inMarch 2019.
The outbreak of the COVID-19 pandemic occurred
during the Clarity AD study. This caused chaos around
March 2020, with study sites shutting down globally andstudy participants avoiding going to sites. In order tocontinue the Clarity AD trial during the pandemic, in theprocess of taking action to reduce the burden on theparticipants and institutions involved, we decided to adopt
an innovative mechanism, the digitally-enabled

Decentralized Clinical Trial (DCT). DCT is a moreparticipant-centric approach to the design andimplementation of clinical studies. It offers a solution toease the burden of participation in a clinical study on theparticipants, using digital tools and other technologies toreduce the need for them to come to the study sites. A
participant-centric study leads to improved access topopulations of people living with AD, especially those thatare traditionally under-represented (such as Hispanics andAfrican Americans in the U.S.), thus broadening thediversity of the participants and improving participant
retention. The COVID-19 pandemic has transformed theway we at Eisai think about clinical studies. This kind of
approach minimizes the burden on participants andcaregivers and aligns with our hhc concept, which focuseson people living with AD and their families, and we willcontinue this approach going forward.

eConsent

WebinarsTele-Medicine

Obtaining participants’ consent
using electronic signatures anddigital forms

Training for health care
professionals using webinars

Ensuring safety through remotemonitoring

Aiming to establish a simple patient journey
Recognize early signs
and make the decision
to seek treatment

Diagnosis by aphysician and referral
to a specialist

Clinical diagnosis
and Aβ test

Lecanemab treatment

Assessment ofcognitive function
Easy self-assessmentof cognitive function

Diagnosis using
a simple cognitive
function scaleFirst dose isan effective dose

Thorough examination
with PET/CSF

Development of maintenancedosing regimen
Development of self-injectable
formulas including an autoinjector

Home Infusions
Health care professionals visit
to perform tests and drug
administrations

Remote Cognitive
Assessments
Remote assessments ofcognitive function

Blood biomarkers

Side effect management• Implementation of the Understanding ARIA educational initiative, which provides educationand programs in cooperation with major scientific societies and medical specialists• Regular monitoring with MRI

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34

Management Strategies

A Comprehensive Subsequent AD Pipeline Following Lecanemab—Research and Development Aligned with Continuous Disease Progression—
With AD, which makes up over half of dementia cases, it has
been found that Aβ begins to aggregate in the brain andaccumulation occurs from 10 to 20 years before the appearanceof symptoms such as memory impairment. Furthermore, it isbelieved that the aggregation and accumulation of Aβ in thebrain triggers the accumulation of the tau protein (neurofibrillarytangles) that resides in neurons, inducing neuronal cell death.
On the other hand, the development of various biomarkers for
detecting pathological changes in the brain and theunderstanding of the disease progression (AD Continuum) are
advancing. In particular, as biomarkers that characterize thepathology of AD, amyloid (A), tau (T), neuroinflammation (I), andneurodegeneration (N) have enabled the assessment ofneuropathological changes. At Eisai, we think of AD as the AD
Continuum, the continuation of a series of disease processes
from before onset. We do not define the disease based on its
symptoms, but on these AT(I)N biomarkers, and we promote thepursuit of innovation. The new page in AD treatment opened bylecanemab will see further additions through the AD pipeline
supporting the patient journey.

Tau (T): The Anti-MTBR Tau Antibody E2814
Tau is the main component of neurofibrillary tangles, which are
one of the pathological changes in AD, and it is known that the
spread of these neurofibrils and the severity of cognitive
dysfunction in AD are well correlated. E2814 is an anti-MTBR(microtubule binding region) tau antibody created incollaboration with University College London (U.K.), and MTBR
tau seeds are known to propagate to different parts of the

Neurodegeneration (N): TrkA-Binding Synapse
Regenerating Agent E2511, EphA4 Antibody
Synapse Stabilizing Agent E2025
It is known that cholinergic neurons are extremely vulnerable inthe brains of people living with AD. Tropomyosin receptor
kinase A (TrkA) is a cell membrane receptor for nerve growth
factor (NGF) and contributes to the survival and maintenanceof acetylcholinergic neurons. Decreased expression of TrkA isobserved in mild cognitive impairment due to AD, but it has not
led to marked neuronal loss. E2511, a small moleculecompound created by our company, is expected to bind to
TrkA and activate cholinergic nerve survival and synaptic
regeneration signals to promote recovery of damaged nerves,
synaptic remodeling, and neural network reconstruction.
Furthermore, EphA4 (erythropoietin-producing
hepatocellular receptor A4) is involved in interaction between
nervous system development and neurons, and it is known
that EphA4 activation promotes synaptic retraction and tau
phosphorylation. E2025 is expected to regenerate dendrites
and restore synapse function by inhibiting this activation.

A comprehensive subsequent AD pipeline following lecanemab—the portfolio covering AT(I)N—
E2814 (Anti-MTBR tau antibody)Aβ protofibrils clearance

Captures MTBR tau seeds extracellularly and blocks
the accumulation of tau within neuronal cell
Phase II/III study targeting dominantly inherited AD underway

Astrocyte

E2025
Synaptic
retraction

Aβ protofibrils
Intracellular MTBR tau
promotes neurofibrillarytangles of tau

Lecanemab

Amyloid plaque

MTBR
tau seeds

Phosphorylated
tau
E2814

Activated EphA4

Promotes tau phosphorylation

Neurofibrillary tanglesof tau cause synaptic
damage and neuronalcell deathE2511→

E2025 (Anti-EphA4 antibody)
TrkA

Inhibits EphA4 activation, regenerates thedendrites of damaged glutamate neurons
and restores synaptic function
Phase I study underway

Neuronal regeneration
Improved synaptic function(I) Drug discovery based on human genetics
TREM2 function coordination
Dementia neuroimmunomodulator
Preclinical

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Eisai Value Creation Report 2023

Materiality to Effectively Realize
Social Good

Data Section

Partners in Creating a Society in Which People Can Live Safely Even with Dementia

brain and cause tau lesions as the disease progresses. E2814
is expected to target these seeds and inhibit their invasion ofcells by capturing them extracellularly, and to suppress theincrease of tau aggregates within the neurons. We areconducting a clinical study of E2814 targeting people livingwith dominantly inherited AD, and we expect to be able toobtain insightful data through biomarkers linked to theprediction of efficacy in the latter half of fiscal 2023.

Lecanemab

Realization of Social Goodin Three Areas

Matsuyo Kamada
Association for People
Living with Dementia andTheir Families
Representative Director

I am honored and grateful to be able to introduce ourorganization, the Association for People Living with
Dementia and Their Families, in the official publication of
Eisai Co., Ltd.
I would like to introduce our association. This
organization was formed in 1980, and our members are
centered around people living with dementia and theirfamilies, as well as the physicians and other professionals
who support them and people living with dementia whoare interested in the disease. With branches in all 47
prefectures of Japan, the focus of our activities is “Tsudoi(gathering)”, a space for peer support, and a telephonecounseling service staffed mainly by counselors withcaregiving experience. We also publish a newsletter. The
Association for People Living with Dementia and their
Families has about 10,000 members, making the voices ofpeople living with dementia heard in society and thecountry, and reflecting them in our policies and conducting
activities to raise awareness about dementia, with the goalstated in our concept of “a society in which people can live
safely even with dementia”.
Compared to when the organization was founded 43
years ago, the number of people, companies, andorganizations involved with dementia has grown
dramatically, and there has also been progress in theunderstanding of dementia as a disease. However,prejudice and discrimination, such as thinking that people
living with dementia do not understand anything or thatyour life is over if you have dementia, still remain strong.
When people search “dementia” on the internet and findhits like these, and if they receive a diagnosis with thename “Alzheimer-type dementia”, for example, some may
become pessimistic about the future and fall into

depression. At times like this, they will get energy andcourage in a peer support setting, where they can meetothers who have already been there, and gain the strength
to live with dementia. With the support of these people,
they will make the most of their abilities to contribute tosociety and do activities and work that give them their own
reasons to live.
One of the challenges is that it is hard to find people
who can provide peer support immediately after being
diagnosed. Hospitals make the diagnosis, but they offer
few introductions to places to get support on how to livewith the disease. After the diagnosis, people living withdementia and their families live in despair and fear during aperiod of emptiness in which they cannot find this support.
The second challenge is the wish for a cure. When thisorganization was formed, the doctor would say, “You havedementia. Now please take care of it with your family”.
Nowadays, there are drugs that can delay symptoms, butthere is no cure.
From our own experience, we have felt that the road to
discovering drugs to treat dementia is difficult. Even
through such a difficult journey, Eisai has continued todevelop drugs, always remaining sympathetic to the
feelings of people living with dementia and listening to theirwishes. We now feel that a drug to cure dementia is not far
away, and there is a bright future of great hope.
Based on the philosophy of human health care, eachand every employee of Eisai Co., Ltd. wishes people good
health and is there to accompany them throughout theirlives. They are a dear partner who works with us to createa society where people can live with peace of mind evenwhen they develop dementia, which is our philosophy.

E2511 (TrkA binding synapse regenerant)
Restores synaptic function by activating TrkA andregenerates damaged axons of cholinergic neuron
Phase I study underway

Eisai Value Creation Report 2023

36

Management Strategies

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Providing Solutions that Empower People to “Live Their Lives to the Fullest”
hhc Activities for Realizing a Dementia-Inclusive Society (Japan)
Eisai has declared hhc as its corporate concept, aiming toconduct business activities by improving benefits for people.
Our goal is to realize our hhc concept by building an
ecosystem that supports and encompasses people fromhealthy to high-risk, onset/treatment, follow-up/prognosis. This
entire business of providing value is the hhceco Model.
The hhceco Model for dementia is the first social issue that
we should tackle. The foundation of this Model is Eisai’s uniquecompetitive advantage: the acquisition and accumulation ofdata on human biology. Using data obtained through in-house
R&D processes and collaboration with partners as input, theDeep Human Biology Learning (DHBL) system of research anddevelopment plays a central role in value creation. Through thissystem, we will not only develop new drugs such aslecanemab and the AD pipeline but also build data models andcreate solution packages based on the research results.
Collaboration with partners such as academia, companies,
and local governments will accelerate this value creation
process. The foundational data will accumulate throughcollaboration with our partners, and in research anddevelopment, research alliances with academia and startups
are being developed. Furthermore, the data models, drugs,
and digital solutions created will be widely offered to the people
by Eisai either directly or in collaboration with partnercompanies and local governments and will relieve their anxiety
at any stage, from healthy to prognosis. For example, by
providing a variety of solutions through collaboration withcompanies and local governments, such as providing an AI
tool that predicts the risk of onset of disease to healthy people,
implementing apps that check cognitive function for people
who are high-risk, and leveraging solutions that visualize
treatment effects for people undergoing treatment, we will beable to approach the right people at the right time.
These solutions will contribute to improving benefits for thepeople and provide social impact to a variety of stakeholders.
Such social impact will lead to efficient funding for future value
creation and creates a virtuous spiral that leads to thedevelopment of new solutions. That is the overall picture of thehhceco Model.

Eisai hhceco Model (dementia)

Eisai has concluded collaborative agreements with 167
local governments and groups, and we have identified theanxieties of the local residents regarding people affectedby dementia and created projects aimed at finding
solutions. Through our many shared experiences with local
residents, we discovered their needs, such as a desire toproactively know about the health of their own brains andhow to prevent dementia, and, together with local
governments and medical associations, we have beendeveloping activities tailored to each region in the country
to relieve those anxieties. Those activities were externalized
in Docolabo, a booklet of groundbreaking case studies,and through ZOOM seminars, developed into a
combination linking a total of 1,436 (as of May 31, 2023)

local governments nationwide.
In a dementia-inclusive society, it will be important for
not only early diagnoses and awareness of the disease,
but also to address people’s lifestyle, consider how the
local community should be, and understand what kind oflife the people should lead as a story. Going forward, by
developing as a business in many more local government,
and tailoring to their local characteristics, and by organicand seamless integration with organizations such as local
communities and patient groups, developing projects thatare working towards a seamless dementia-inclusive
society, and becoming a company that is indispensable tolocal residents, we will be able to realize the hhc concept
and evolve into an hhceco company.

Building support systems in tune with the feelings of local residents to resolve regional issues
Bizen City, Okayama

Taketa City, Oita

Bunkyo Ward, Tokyo

Aki City, Kochi

Shizuoka City, Shizuoka

To enjoy exercising together

To continue driving for as
long as possible

To know about my brain
health and do what I can

To take care of body andbrain healthTo feel free to consult when
worried about dementia

Dementia prevention classes

Lively health classes for driving

Bunkyo Ward dementia checkup

Specific health checkups

Kakekomachi Shichiken-cho

Social impact (People living with AD, their families, caregivers, HCPs, payers, governments, shareholders and employees)

Healthy

High-risk(Healthy)
Solution
Inclusion• Patient advocacy groups• Local governments• Prediction of risks for onset• Disease awareness• Genetic test
• Wearable/healthcare app
Collaboration (obtaining PHR＊2 and others)

The People

Onset/treatment

Follow-up/prognosis(High-risk)
Solution(Onset/treatment)
Solution(Follow-up/prognosis)
Solution• e-65.net• NouKNOW®＊3• Online community/
consultation• PET/CSF• Blood-based biomarker• Real Medicine• Digital Medicine• Prediction of risks for
progression• Visualization of treatment
effect• Building an inclusive society• Introducing facilities for
elderly people• ePRO＊4

Industry collaboration

Collaboration

Eisai Solution (Value) Creation Scheme

Academia• University College London• Keio University• Washington University
Collaborationin St. LouisGenome data bank
• Japan Health Research
Promotion Bureau
Provision• J-ADNI＊1of data

Value Creation based on human biology evidence,by viewing disease as a continuum

Genome data for disease

Data from clinical studies

RWD＊6/PHR data

• Genome data fordementia, which is
expected to expand• Lecanemab＊5 Clarity AD(most recent and important
findings of AD)• Elenbecestat• Aricept®

• Follow-up data of people
received treatment• Medical examination/
bio data• Cohort data

• Insurance• Financial• Communication• Automobile• Fitness• FoodStart-up companies• Bio/drug discovery venture＊7
Collaboration • DTx venture

Monitoring/
PHR partners
Provision • Medical device• PHR app/medical checkupof data

Realize the Articles of Incorporation
Potential funding through sustainable financing with social impact targets as KPIs
＊1 Japanese Alzheimer’s Disease Neuroimaging Initiative＊2 Personal Health Record＊3 Self-checking tool (non-medical device), which individuals can check their cognitive functions by themselves with quantified brain performance data through simple card
games utilizing PC or tablet-type device＊4 Electronic Patient Reported Outcome＊5 Antibody for Alzheimer’s disease produced as the result of a strategic research alliance between Eisai and BioArctic. Collaboration with Biogen＊6 Real World Data
＊7 Digital Therapeutics

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Eisai Value Creation Report 2023

Eisai’s Future Initiatives to Relieve Anxiety about Dementia
As AD disease-modifying treatments become available tosociety, we expect that there will be a major paradigm shift in
the way we deal with dementia as we move to prevention andthe suppression of progression in early stages, when symptoms
have not yet appeared, through early treatment after onset.
However, for a drug to show its value, we need to develop an
environment in which people not currently being seen at medical
institutions can readily seek advice and ask questions, and feel
comfortable consulting a medical institution when, as part oftheir daily health management, they perceive changes in their
cognitive function and recognize the need for treatment. In the
diagnostic environment too, Eisai is accelerating collaborations
with partner companies and developing the next-generation
environment with diagnostic tools such as biomarker tests. We
believe that by adding biomarker tests to conventional
neuropsychological assessment, we will be able to deepen our
understanding of dementia in a more multifaceted way.

Eisai has the world’s most comprehensive pipeline in thedementia area. In the future, as we will deliver numerous
innovations that will be created from this abundant pipeline andsolution packages that incorporate non-drug approaches, itwill also become important to establish a wide range of pointsof contact with the people at all stages. To this end, as we will
establish an ecosystem that can be provided throughcollaboration with more companies and local governments inline with the emergence of disease-modifying drugs, thisecosystem will be able to set up an environment that will not
only provide treatment with conventional drugs, but will also
help resolve the various anxieties of people with dementia.
In this way, by accelerating the creation of solutions thatuse digital technology and producing mechanisms that can beprovided via the ecosystem, we want to create a society inwhich people can consider how to interact and coexist withdementia in the future.

Eisai Value Creation Report 2023

38

Management Strategies

Realization of Social Good in Oncology Area
Creation of social impact through the curingrefractory cancers via the creation of
innovative new medicines
Takashi Owa
Senior Vice President
Chief Scientific Officer
Japan and Asia Medical
SafetyWhile the number of cancer cases and cancer deaths tends toincrease, the overall cancer mortality rate has been falling inrecent years due to the emergence of ground-breaking
treatment such as immuno-oncology. Meanwhile, there arealso some cancer types for which the mortality rate isincreasing, and patients who are suffering from refractory
cancers. Eisai continues to work on relieving anxieties overhealth in the oncology area, where there is a high level ofunmet needs worldwide.
Our history of drug discovery activities in the oncology areaspans 35 years, and we have delivered two in-housedeveloped anticancer agents, Lenvima® and Halaven®, tocountries and regions throughout the world. Lenvima® has
currently obtained six indications for five cancer types (thyroid
cancer, hepatocellular carcinoma, endometrial carcinoma, renal
cell carcinoma, and thymic carcinoma), expanding ourcontribution to patients. Going forward, we anticipate theaddition of new indications for combination therapy with
KEYTRUDA® of non-small cell lung cancer and other cancers,
and we aim for Lenvima’s fiscal 2025 revenue to reach the 500
billion yen level. We are also engaged in drug discovery basedon human biology data obtained from specimens acquired
from Lenvima® clinical trials. A clinical study is underway on
E7386, a compound which was developed through thisapproach and it is expected to show effects on cancers thatare resistant to immuno-oncology. Drug discovery leveraging
the expertise we have gained up to this point is showing
positive results.
Furthermore, Halaven®, which is mainly used for treatmentof breast cancer, is a compound synthesized by focusing on
natural products, which have a complex structure discoveredfrom marine organisms. Many people have thought large-scale
synthesis for commercial use while controlling quality would bevery difficult, and they have wondered whether, even if it weresuccessful, the manufacturing process would be too complex,
making it an unprofitable project. However, Eisai has

39

Eisai Value Creation Report 2023

succeeded in developing it and achieved synthesis on acommercial scale. We believe one reason for this was the factthat the mindset of the late Yoshito Kishi had taken root at Eisai
along with his simple and honest way of working without fearof failure. Professor Kishi was an emeritus professor at Harvard
University and also served as Vice President of our U.S.
subsidiary, who undertook total synthesis of a complex natural
product for which there were many possible synthesis routes.
Another reason for this success was relationships of trust withacademia, where they were inspired by the depth of our
feelings for patients, and our strength in organic synthetic
chemistry.
Eisai is currently collaborating with Bristol Myers Squibb(U.S.) in the development of an antibody drug conjugate (ADC)that combined Halaven® with an antibody (farletuzumab) thattargets folate receptor α, in order to more accurately pinpoint
the delivery of Halaven® in cancer tissue. In addition, we havestarted joint development with Bliss Biopharmaceutical(Hangzhou) Co., Ltd (China) of an ADC that combined
Halaven® with an antibody (trastuzumab) that targets HER2.
In the discovery of anticancer agents, while pharmaceuticalcompanies worldwide are making strong moves toward thecreation of new innovations, we have a mentality that takes onchallenges without fear of failure and drug discovery
capabilities based on human biology data acquired fromclinical studies of Lenvima®. We also have organic synthesis

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Socialization in the Oncology Area (hhc Activities): From Empathizing with Anxieties to Getting Ideas for Drug Discovery
In order to empathize with the anxieties and concerns ofpatients with cancer and utilize them in future drug discovery
activities, every year our staff members, including cancer
researchers from Tsukuba Research Laboratories, engage insocialization with patients with cancer through multiple
projects. In fiscal 2022’s socialization, we also undertook
activities focused on palliative cancer care. Throughopportunities to be present at points of care both in hospital
palliative care departments and at-home palliative care, we felt
again that, while the hopes and expectations of patients about
the effects of the anticancer agents they are using include
cure, tumor regression, and maintenance of their condition,
they have serious anxieties and suffering with regard to side
effects, including impairment of their work and daily life due tosymptoms such as numbness and pain in limbs, nausea,

diarrhea and fatigue. We also noticed that they feel there is notenough reliable information about the treatment options forfighting cancer and their side effects, and not enoughinformation to help them understand what will happen to themin the future. At the research and development sites, themembers involved in hhc activities opened up the discussions
in each organization and project team, such as what kind of
drug discovery we should be aiming for to resolve the anxietiesof the patients we empathized with, what is a more appropriate
evaluation method to measure the value of drugs to patients,
and whether there are ways we can support patients from thepoint of view of information and managing side effects,
specifically applied them in project activities at thedevelopment stage, and reflected on ideas for new drug
discoveries.

Messages from Patients with Cancer
These are some of the messages we received duringsocialization with patients with cancer, cancer survivors, theirfamilies, and support groups in activities such as walking
rally, where we interacted and exchanged information.

confidence and hope, that would bring a smile toeveryone’s faces even during treatment. My hope for the
future is new drugs in a few years”.

“If you could get rid of our anxieties about the treatment
and the drugs and we could face our diseases with a little

Treatment outcomes have improved in the past 10 or 20
years, but these messages make us keenly aware that thehealing rate for advanced and recurrent cancers is still low
and that a great number of patients have no choice but touse drugs with severe side effects. Under thesecircumstances, we believe that this is encouragement thatthey expect us to continue developing new drugs. Eisai
should meet these expectations, keep thinking about
whether we can create new drugs with fewer side effects
that increase the healing rate even just a little and whether
we can reduce the research and development time, andcontinue challenging ourselves.

New Eisai joiners socializing with breast cancer survivors during a training session

hhc activity: walking rally event“Please make a drug that brings about a cure. Please
make drugs without side effects and drugs that preventside effects. I wish there will be no line between which lives
can be saved and which cannot”.
“Please make my son’s disease curable someday. I would
do anything for that. Please do it even if it’s too late for myson. So please make that happen”.

technology that enables us to achieve things no one else has
done, such as the commercialization of Halaven®. With thesetechnological and drug discovery capabilities, we aim to relieve
the anxieties of patients and their families a little more and, as
quickly as possible, and create pioneering new drugs thatbring smiles back to their faces.
When I think about this disease, cancer, my ultimate goal is
to use drug treatments to make it possible to prevent cancer
before it worsens or progresses, or before it becomes cancer.
In the future, I want to be able to cure all types of cancer.

Eisai Value Creation Report 2023

40

Realization of Social Goodin Three Areas

Management Strategies

SWOT in the Oncology Area

Materiality to Effectively Realize
Social Good

Data Section

Expansion of Contribution to Patients Worldwide with Lenvima®

Weaknesses

Strengths●35 years of experience in drug discovery research, experience and knowledge
in creating and marketing new drugs, such as Lenvima® and Halaven®, and theaccumulation and retention of clinical study data and clinical specimen
analysis data
●Highly organic synthetic chemistry that can be practically applied tocommercialize complex compounds as drugs●A research organization that enables close collaboration with universities andstart-up companies with the establishment of research sites at central
locations for scientific activities in Japan, the U.S., and the U.K.
●Promotion of development and marketing, and accumulation of experiencethrough strong global strategic alliances with partners such as Merck & Co.,
Inc., Rahway, NJ, USA and Bristol Myers Squibb

Opportunities●Segmentation of treatment systems with biomarkers and movement towardcross-cancer type approvals●Enhancement of the system for accelerated approval from regulatory
authorities●Expansion of oncology market accompanying the entry of high value-added
drugs and economic growth in emerging countries●Optimization of clinical study design with the use of real-world data

●Amount of investment which can bemade into R&D is limited compared withlarge global pharmaceutical companies●Limited lineup of global productSteady Progress in Collaboration and Expansionof Revenue

fiscal 2023, we continue to contribute to patients with theexisting six indications for five types of cancer, projecting
revenues of 261 billion yen. In addition, Eisai’s strategic
partnership with U.S. Merck includes an agreement to receive
an upfront payment and payments related to regulatory andsales milestones upon the fulfillment of several conditions. We
have already received the upfront and regulatory milestone
payments in full, totaling 311.1 billion yen as planned, and weplan to receive further sales milestone payments, according to
the expansion of Lenvima® sales, in the future.

Five years have passed since Eisai and Merck & Co., Inc.,
Rahway, NJ, USA (U.S. Merck) agreed to a strategic
collaboration for Lenvima® in March 2018. Cocommercialization of Lenvima® with U.S. Merck is currently
ongoing in 28 countries worldwide as of March 2023 and, withthe expansion of indications for its use in combination with
KEYTRUDA® in endometrial carcinoma and renal cell
carcinoma, revenue for fiscal 2022 was 249.6 billion yen. In

Threats●Rapid changes in competitive landscapeand innovative new treatments entering
the market●Prolonged development period due tothe increased degree of difficulty in theearly approval pathways and depletionof R&D investments as a result of
downward pressure on drug prices●Rapid changes and diversification of
drug discovery modalities andtechnology

Trends in Lenvima® revenue＊5 (billions of yen)■Americas■China■EMEA■Japan■Asia and Latin America

192.3 billion yen

161.6

174.0

32.2

27.0

30.9

32.0

133.9 billion yen

116.5

111.9 billion yen

32.2 billion yen

5.8
3.0
1.5

21.9
Results for fiscal 2017

81.0

68.0

62.6 billion yen

Value Creation Story of the Oncology Area

261.0 billion yen

249.6 billion yen

37.5

3.1
4.0

8.0
10.0

Results for fiscal 2018

13.3
12.7
13.1

Results for fiscal 2019

4.8

35.0

19.1
15.8
12.2

5.9

Results for fiscal 2020

21.8
10.3

Results for fiscal 2021

8.8

13.7

11.1

Results for fiscal 2022

17.5
10.5

Forecast for fiscal 2023

Goal
Cure of refractory cancers by creating innovative treatments, expansion of access, and realization of prevention based on apredictive model of cancer onset

Trends in receipts of payments related to Lenvima® (billions of yen)
■Onetime■Regulatory milestones

Fiscal 2025 targets and KPIs

■Sales milestones

Value maximization of Lenvima®
• Obtain new indications in KEYTRUDA
combination therapy• Contribute to approx. 160,000 people a year globally and aim for annual revenue at the 500 billion yen level

Fiscal 2030 targets and KPIs
Contribution to patients with refractory cancers through new projects following Lenvima®

65.5

5.5

25.0
34.5

54.6

2.7

31.8
Results for fiscal 2017

69.2

34.6

•	Submit earlier for MORAb-202＊2, E7386＊3 and BB-1701＊4•	Accelerate clinical introduction of new projects based on drug discovery with efficient approach utilizing DHBL, to submit forearly approval•	Acquire products or co-develop and co-commercialize with partner companies to enhance pipeline and maximize its value

80.3

76.2

®＊1

21.6
Results for fiscal 2018

19.9

20.7

35.0
Results for fiscal 2019

1.0
12.9

11.2

Results for fiscal 2020

Results for fiscal 2021

16.7

3.2

Results for fiscal 2022

Fiscal 2023 and beyond＊1 KEYTRUDA® is a registered trademark of Merck Sharp & Dohme LLC., a subsidiary of Merck & Co., Inc., Rahway, NJ, USA. Aiming to obtain indications according to
combined use with Lenvima® through joint development＊2 Co-development with Bristol Myers Squibb. Generic name: farletuzumab ecteribulin (FZEC)＊3 Collaboration with PRISM BioLab＊4 Eisai entered into a joint development agreement with Bliss Biopharmaceutical (Hangzhou) Co., Ltd. with option rights for a strategic collaboration＊5 From fiscal 2022, Hong Kong was changed from the Asia and Latin America pharmaceutical business segment to the China pharmaceutical business segment

41

Eisai Value Creation Report 2023

Eisai Value Creation Report 2023

42

Management Strategies

Multiple clinical studies of combination therapies of Lenvima®

new indications such as non-small cell lung cancer andand KEYTRUDA® are ongoing for various cancer types. In

endometrial carcinoma in combination with KEYTRUDA®,

addition to 13 studies that were planned at the time weentered the partnership agreement with U.S. Merck, expansion
is underway, such as initiation of new studies for hepatocellular
carcinoma in combination with TACE, gastric cancer, andesophageal carcinoma. In fiscal 2023, final analysis data forwhich is essential for the future growth of Lenvima®, isanticipated. By obtaining indications in multiple types ofcancer, we expect this combination to contribute to many
more patients in cancer treatment.

Approved indications for Lenvima® and further expansion of indications in combination with KEYTRUDA® (as of August 25, 2023)

Thyroid cancer 1L

Renal cell carcinoma 2L

Approved in more than 80 countries

Approved in more than 65 countries

Hepatocellular
carcinoma 1L

Renal cell carcinoma 1L

Approved in more than 80 countries

Approved in more than 45 countries

Thymic carcinoma

Endometrial
carcinoma FPSTApproved in Japan

Approved in more than 45 countries

Studies for indication expansion in combination with KEYTRUDA®
Non-small cell lung cancer 1L
Non-squamous cell carcinoma
Combination with chemotherapy

Non-small cell lung cancer 2L

Endometrial carcinoma 1L

Head and neck cancer 2L

Hepatocellular carcinoma 1L

Melanoma 2L

Combination with TACE

Gastric cancer 1L

Esophageal carcinoma 1L

Combination with chemotherapy

Combination with chemotherapy

1L: First-line, 2L: Second-line, FPST: Following prior systemic therapy

Main Mechanism of Lenvima® to Enhance the Efficacy of the Anti-PD-1 Antibody(Non-clinical Studies)
Studies showed that Lenvima® enhances the effect of anti-PD-1
antibodies by reducing tumor-associated macrophages (TAMs),■Self-protection of cancer cells against
cytotoxic T cells
PD-1
PD-L1

Cancer Weakened
attackcells

Cytotoxic
T cells

To protect themselves, cancer cells inhibit the actionof cytotoxic T cells attacking cancer cells through thebinding between PD-1 and PD-L1■The work of anti-PD-1 antibody
Anti-PD-1 antibody

PD-L1

PD-1

which suppress immune activation, and by increasing activatedcytotoxic T cells, which attack cancer cells.

■The mechanism of tumor associated macrophages
Anti-PD-1 antibody

PD-L1

Cancercells

Eisai Value Creation Report 2023

MORAb-202 is an antibody drug conjugate (ADC) thatcombines an antibody (farletuzumab) that targets folate
receptor α (FRα), which is highly expressed in multiple typesof cancer, with Halaven® (eribulin), our proprietary anticancer
agent which targets include breast cancer. Eribulin is taken up
by the cells in which FRα is expressed. It shows an antitumor
effect while acting on the cancer microenvironment and is
expected to show antitumor activity. Eisai currently has an
exclusive strategic collaboration agreement with Bristol Myers
Squibb (U.S.) for this drug. We are jointly developing the drug
toward commercialization. Phase II studies targeting non-small
cell lung cancer, ovarian cancer, and others are ongoing.

Investigational Anti-HER2 Antibody Eribulin
Conjugate BB-1701

Tumor associatedmacrophages

PD-1

Weakened
attack Cytotoxic
T cells

In May 2023, Eisai entered into a joint development agreementwith Bliss Biopharmaceutical (Hangzhou) Co., Ltd. (China) with
option rights for a strategic collaboration on the anti-HER2
antibody ADC, BB-1701. BB-1701 is an ADC that combines
Eisai’s in-house developed anticancer agent eribulin with ananti-HER2 antibody (trastuzumab) using a linker. This
proprietary technology platform developed by Eisai’s U.S.
research site in Exton, utilizes a linker-payload which uses
eribulin as a payload. It is expected to have anti-tumor effects
on breast, lung and other solid tumors that express HER2, andgoing forward, we plan to conduct a Phase II clinical study
targeting HER2-expressing breast cancer.

Investigational Wnt/β-Catenin Inhibitor E7386
In an approach that inhibits malignancy signals, we aredeveloping E7386 to target the Wnt/β-catenin signal, focusing
on the activity of cancer cells. This signal has long been known
to be a factor that accelerates the malignancy of cancer, but it
has been a difficult target for drug intervention until now.
Through a collaboration with PRISM BioLab Co., Ltd., Eisai
has successfully developed this compound, which can beadministered orally, leveraging the drug discovery chemistry
expertise we have accumulated over the years. It has beensuggested that this signal is also involved in the resistancemechanism of mainstream immunology immune checkpoint
inhibitors, and we believe that, if we can put it to practical use,
we can contribute to many patients. Furthermore, sinceabnormalities in the signals have been observed in various
types of cancer from the early stage of occurrence, E7386 is
expected to be indicated for early-stage cancer as well. In the
oncology area, early-stage intervention is key in the pursuit of amuch-desired cancer cure through drug intervention and webelieve that, by developing E7386, we will get a little closer torealizing a cure. Currently, in addition to the Phase I clinicalstudy targeting solid tumors with monotherapy, we areconducting a Phase I clinical study targeting hepatocellular
carcinoma and others in combination with Lenvima® and a
Phase Ib/II clinical study targeting solid tumors in combination
with KEYTRUDA®.

自社創製エリブリンを活用したADC

Investigational ADCs leveraging Eisai’s in-house developed anticancer agent eribulin

Inhibits
action■The mechanism of Lenvima®
Anti-PD-1 antibody

PD-1

Tumor associatedmacrophages

PD-L1

Inhibits
actionStronger
attackCytotoxic
T cells

The anti-PD-1 antibody releases the brake on the cytotoxic
T cells by inhibiting the binding between PD-1and PD-L1,
which results in attacking the cancer cells

43

Data Section

Tumor associated macrophages are cells that cancer cells
activate to protect themselves and inhibit the attack ofcytotoxic T cells

AttackCancercells

Investigational Anti-folate Receptor α Antibody
Eribulin Conjugate
MORAb-202/Farletuzumab Ecteribulin (FZEC)Basket trials in multiple cancer types(Gastric cancer, colorectal cancer, glioblastoma, biliary tract cancer, and pancreatic cancer)

Pink: Monotherapy
Purple: Combination with everolimus
Green: Combination with KEYTRUDA ®

Materiality to Effectively Realize
Social Good

Medicine Creation Strategy and Main Pipeline in the Oncology Area

Clinical Studies Aimed at Expanding Indications Are Ongoing

Indications approved by fiscal 2022

Realization of Social Goodin Three Areas

Cancercells

Cytotoxic
T cells

Lenvima®

Lenvima® activates cytotoxic T cells by inhibiting the action oftumor associated macrophages, which results a stronger attack
against the cancer cells

MORAb-202: Anti-folate receptor α antibody (farletuzumab)

MORAb-202：抗葉酸受容体α抗体
BB-1701: Anti-HER2 antibody (trastuzumab)
BB-1701：抗HER2抗体

Halaven (eribulin)
ハラヴェン（エリブリン）®

Eisai Value Creation Report 2023

44

Management Strategies

Realization of Social Goodin Global Health Area

Sayoko Sasaki
Vice President
Corporate Communications
ESG

Based on our corporate concept, Eisai aims to achieve thesocial goods of “relieving peoples’ anxiety over health” and“reducing health disparities” in an effective manner. It is the roleof a company to work together with the public on social issues,
and we must conduct our corporate activities with a long-term
perspective that anticipates the social impact. We haveidentified initiatives to combat neglected tropical diseases(NTDs) and malaria as an important business domain guided
by our corporate concept.
NTDs are infectious diseases that are mainly endemic indeveloping countries, still exposing over one billion people to
the risk of infection as well as being a cause of poverty, andare sometimes called “the disease of those who are left
behind”. In 2010, Eisai signed a joint statement with the World
Health Organization (WHO) to provide diethylcarbamazine(DEC) tablets, a treatment for one of the NTDs called lymphatic
filariasis (LF), and to date we have provided 2.1 billion tablets
free of charge in 29 countries. In addition, in India and otherendemic countries where we have local subsidiaries, we
conduct a variety of support activities to ensure elimination,such as support for elimination activities (mass drug
administrations) as well as education of healthcare workers,
disease awareness of local residents, and improvements insanitation. During this period, 18 of the 72 countries in which
LF was endemic (including four countries where Eisai provided
DEC tablets) have eliminated the disease, and the number ofpeople infected has declined by 74% since 2000. Furthermore,
we have also worked on quantifying the social impact of the
DEC tablets we provided. We calculated that the prevention of
infection and aggravation through the free provision of 1.6
billion tablets in the five years from 2014 through 2018 brought
improvements in the lifetime working hours of tens of millions
of people and lowered healthcare spending, leading to thecreation of about 7 trillion yen (approximately 160 billion yen
per year) in social impact (see page 50). We also anticipate
that, in fiscal 2030, the social impact of the free provision of

45

Eisai Value Creation Report 2023

Materiality to Effectively Realize
Social Good

Data Section

Socialization with Lymphatic Filariasis (LF) Patients in Yarada Village, India (hhc Activity)

Creation of social impact through the provisionof treatments for lymphatic filariasis and thedevelopment of new drugs for tropical diseases

Working with Our Partners toward a World Freeof Neglected Tropical Diseases

Realization of Social Goodin Three Areas

DEC tablets will expand to 12 trillion yen (280 billion yen peryear) with our continuing support until LF is completely
eliminated in all the countries where it is endemic.
Through a partnership, Eisai is also conducting a clinicalstudy of E1224, our in-house developed fosravuconazole in
Sudan with the goal of creating the world’s first drug formycetoma, known as the most neglected tropical disease.
Preparation of the submission to the Sudanese regulatory
authorities is currently underway.
Eisai is a participant in both the 2012 London Declaration,
the world’s largest international public-private partnership
aimed at eliminating NTDs, and its successor, the 2022 Kigali
Declaration, and we have expressed our commitment to theelimination of NTDs through the provision of drugs and thedevelopment of new ones. While we are glad that theelimination of NTDs has definitely progressed over our ten-year
efforts to combat them with our partners, we realized anew
that the journey to eliminate just one infectious disease is long
and arduous. When we spoke with LF patients, they fervently
told us that they wanted us to eliminate the disease for theirchildren and their future and hoped we would develop effective
treatments. Elimination activities are still at the halfway point,
and we must pick up the pace even more. With our partners,
we will continue to work toward a world free of NTDs.

Yarada Village is located in the state of Andhra Pradesh incentral eastern India with a total population of approximately
3,800 including about 50 patients suffering from LF. Since
2013, by participating in a public-private partnership with thestate government, Eisai has been working in the village toeliminate LF through activities such as raising awareness of thedisease, improving sanitation, and eliminating the insects
which cause it, such as mosquitoes. In March 2023, along withJapanese news media and participants in the Reach Out
Project of PoliPoli Inc., which aims to foster the next-generationof leaders in the global health area, Eisai head office employees

visited the village and socialized with LF patients in the village’s
community hall and in the patients’ homes. Having contracted
LF, patients suffered from symptoms such as fever and pain,
which last for several days, and their lives are impeded until thesymptoms subside. In Yarada Village, where they were bornand raised, patients did not experience discrimination due totheir outward appearance because of the support of theirfamilies and those around them, but they shared anxiety about
issues such as people outside the village looking at themstrangely. They also expressed their appreciation for Eisai’s
holistic efforts to eliminate LF, from free provision of DEC, tosanitation improvements and mosquito control in the village aswell as their expectations for the continuation of such activities
and expansion of these activities to other villages.
Message from Reach Out Project ParticipantsSocialization at an LF patient’s home

The fact that a pharmaceutical company not only manufactures
DEC tablets and provides them for free but also conducts
activities rooted in the local community where LF patients live
was very enlightening. We want to work on the control of
NTDs, so being able to observe practical controls onsite wasvery helpful for us. Through interactions with LF patients, we
got a sense of how the disease really impacts their lives andhow great it was to have a drug that could prevent infection.

Messages from Partners
Initiatives to Raise Awareness of Mycetoma and Create New Drugs
As an initiative for mycetoma, which is an NTD, we are working with a non-profit organization, the Association for Aid andRelief, Japan (AAR Japan) and the Drugs for Neglected Diseases initiative (DNDi), to create new drugs and to raise awarenessin regions where the disease is endemic.
Message from Tomomi Awamura of AAR Japan
In providing support, we conduct our initiatives with anawareness of so-called “behavior modification”, or whatkind of behavioral changes the local people will make toimprove their own lives. Alone, it is difficult for us toencourage mycetoma-related
behavioral modification, but
partnering with Eisai enables
us to tell patients that we are
hopeful that therapeutic drugs
will be developed and thatgives us great strength topush ahead with our activities.

Message from Tatsuro Kuzuki of DNDi
Trust with partners holds the key to therapeutic drug
development for NTDs. Beyond the enhancement ofmutual trust, we can see a society in which people do notdie from treatable infectious diseases, and ultimately aresilient healthcare systemthat can deal with new
infectious diseases locally. I
sincerely hope that E1224, atherapeutic drug formycetoma, will be approved,
and that it will be the first stepon the path.

VP Sasaki socializing with LF patients in Yarada Village, India

Eisai Value Creation Report 2023

46

Management Strategies

SWOT in the Global Health Area

Strengths●Contributing to the elimination of LF by providing DEC
tablets for free and gaining the trust of the community●Gaining knowledge through collaboration with many partners
in drug discovery research and clinical development●Improving employees’ motivation through the visualization of
global health initiatives and value●Stimulating public opinion about global health using theevents held related to G7 Hiroshima Summit 2023, as a hook
●Growing momentum for global health initiatives by boosting
interest in ESG and SDGs
●Networks built through the London Declaration as the only
Japanese company to participate

Materiality to Effectively Realize
Social Good

Data Section

Developing a Multifaceted Approach to LF Elimination

Weaknesses●Insufficient experience with clinical studies in regions oftropical disease infection●Influence on global stakeholders

Threats
Opportunities

Realization of Social Goodin Three Areas●The risk that establishment of resolution mechanisms inwhich endemic countries to play a proactive role, do not
progress●Delays in elimination activities due to changes in thepriorities of international organizations and donor countries●Delays in elimination activities and weakening of medical
systems due to outbreaks of new serious infectious
diseases and pandemics●Acceleration of poverty in countries where elimination
activities are conducted, caused by delays in those
activities, and delays or discontinuation caused bysituations such as the political climate or natural disasters

LF is an NTD in which people are infected by mosquitoes, andapproximately 880 million people worldwide, mainly in tropicaland subtropical developing countries, are at risk of infection.
When a person is infected, it causes serious damage to thelymph system. In addition to being a factor causing physicaldisabilities, such as elephantiasis (where the legs and/or otherbody parts swell to resemble those of an elephant), it also
leads to social stigma associated with the disfiguring visible
manifestations. The WHO conducts MDAs in endemic
countries to eliminate LF.
A worldwide shortage of DEC tablets, one of the three
types of drugs used in MDA, has been a great impediment ineliminating LF. In 2010, Eisai signed a joint statement with the
WHO in which we committed to the free provision of DEC
tablets. Eisai is committed to the development andmanufacture of high-quality DEC tablets and to the continued
free provision of the tablets to LF-endemic countries until
elimination is achieved in these countries. Through the WHO,
we have provided 2.16 billion tablets＊2 to date in 29 LF-

has been achieved, we have contributed to the elimination by
providing DEC tablets in four countries: Sri Lanka, Thailand,
Egypt, and Kiribati. To achieve the goal of eliminating LF by
2030, as stated in the WHO’s “Road map for eliminatingneglected tropical diseases 2030”, Eisai has provided financial
support for the provision of LF diagnostic kits for evaluating thedegree to which the disease has been eliminated.
In addition, from the staff of our subsidiaries in eight
countries worldwide, mainly those sites in LF-endemic
countries, we have appointed DEC Project Managers
responsible for establishing and implementing LF elimination
activities. The DEC Project Managers hold discussions from a
local perspective with government officials in charge of LF andother relevant stakeholders in these countries about what kindof contributions they can make to achieve the early eliminationof LF, and they work together with these stakeholders. Eisai is
contributing to LF elimination through multifaceted approaches
in endemic countries, such as support for the implementationof MDAs, disease awareness, and improvements in sanitation.

endemic countries. Of the 18 countries where LF elimination

Creating the World’s First Drug for Mycetoma, the Most Neglected Tropical Disease, and Supporting Local Capacity-Building Activities
Value Creation Story of the Global Health Area
Goal
Elimination of diseases by creating treatments and expanding access, and contribution to reducing health disparities

Fiscal 2025 targets and KPIs
• LF	Expand and enhance support for elimination activities in India, the world’s largest LF-endemic country,
through the free provision of DEC tablets and holistic efforts. Complete MDA in 24 other countries＊1. Create
approx. 260 billion yen/year in social impact with approx. 29 million people receiving the benefit of the DEC
tablets• Mycetoma	Submit for E1224 in Sudan. Conduct epidemiological surveys to establish the patient journey• Malaria
Initiate clinical studies of one new compoundFiscal 2030 targets and KPIs
• LF	Complete MDA in a total of 30 countries＊1 including India by providing 3.9 billion DEC tablets and create
approx. 280 billion yen/year in social impact with approx. 31 million people receiving the benefit of the DEC
tablets• Mycetoma	Promote collaboration across sectors to establish
the patient journey. Obtain approval of E1224 in
Sudan and establish a sustainable method ofproviding it. Contribute to the provision of E1224 in連携countries other than Sudan where the disease isendemic
Vizag Plant(India)• Malaria	Submit for novel compounds and achieving clinical
POC (Proof of Concept) of one other candidate
compoundDistribution of DEC tablets (as of July 2023)

47

Eisai Value Creation Report 2023

Mycetoma is an NTD which is transmitted through the skin andwhich, if left untreated, produces enormous tumors on the limbs
and other parts of the body. There is a lack of basic information
including its transmission pathway and incidence, and because
there are few treatment methods, it is said to be one of the mostneglected tropical diseases. In order to create the world’s first
drug for mycetoma, Eisai is working with the Mycetoma
Research Centre in Sudan (one of the endemic countries), theDNDi, and the Global Health Innovative Technology Fund (GHIT
Fund) to conduct clinical studies of E1224, our in-housedeveloped anti-fungal drug fosravuconazole and engaging intalks with Sudanese regulatory authorities about the process for
future regulatory submissions. At the same time, in order toestablish an access plan for the effective delivery of the newtreatment to many patients, we are holding dialogues withstakeholders both within and outside Sudan.
Eisai has partnered with AAR Japan and have beencollaborating to tackle mycetoma in Sudan since 2019. Since
the start of our activities, we have provided treatment andsurgery to over 190 patients with mycetoma, conducteddisease awareness-raising activities for more than 2,800
residents, and promoted a holistic and sustainable approachthat includes capacity-building for local organizations. In fiscal
2022, this project was selected for “Projects for Growth ofMedical Technologies”＊3 by the Ministry of Health, Labour andWelfare, Japan. In the same year, in cooperation with theInstitute of Tropical Medicine, Nagasaki University, we
conducted two online training sessions for cooperative
organizations and healthcare professionals involved inmycetoma countermeasures in Sudan and held active
discussions with the goal of eliminating NTDs.

＊https://kyokuhp.ncgm.go.jp/activity/open/entry2022/
R04_tenkaisuisin_saitaku_ichiran5.pdf

Awareness-raising activities at a core hospital in Sudan

Sudan＊1 Based on the WHO’s goal for LF elimination by 2030
＊2 As of July 31, 2023
More lymphatic filariasis initiatives can be seen on our corporate website.
https://www.eisai.com/sustainability/atm/ntds/lymphaticfilariasis/index.html＊3 https://kyokuhp.ncgm.go.jp/activity/open/entry2022/R04_tenkaisuisin_saitaku_ichiran5.pdf (only available in Japanese)
Eisai Value Creation Report 2023

48

Management Strategies

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

as mycetoma and chagas disease as well as malaria andtuberculosis of the three major infectious diseases.
International collaboration is essential to effectively achieve

Kappei Tsukahara
DHBL Microbes &Host Defense
Domain Head andHead of Tsukuba ResearchLaboratories

In the tropics, many people suffering from NTDs lack access to
drugs and healthcare. In 2021, 250 million people contracted
malaria and 1.6 million lost their lives to tuberculosis. Eisai has
positioned initiatives in the global health area alongsidedementia and cancer as social goods, and at our R&D sites
worldwide, we are working to create new drugs for NTDs suchthese initiatives. Funded by both domestic and international
funds aiming to eliminate tropical diseases, such as the GHIT
Fund, and in cooperation with global top-level academia andresearch organizations such as the Broad Institute, andnonprofit R&D groups such as the DNDi, we are gathering theknowledge of people with great ideas, cutting edge technology,
and experience and know-how in onsite clinical development
and proceeding with 16 drug discovery projects. The trigger
was an hhc activity to develop antimalarial drugs, which began
in 2002. In many endemic countries, low income prevents thedevelopment of new drugs. In response to this situation, we
discussed what we should do, and as a result, we embarked
on drug discovery for tropical diseases. Eisai’s researchers are
combining their efforts with those of their colleagues aroundthe world to relieve the health anxieties of the people ofendemic countries through new drugs and effectively realizesocial good in the area of global health.

NTDs/Infectious diseases research project portfolio (as of July 2023)
Early research stage
Chagas Disease
Neglected
Tropical
Diseases(NTDs)

3 Major
Infectious
Diseases

Exploratory research on
Trypanosoma PDE inhibitorss ①

Non-clinical

ClinicalChagas vaccine(using immunostimulant E6020) ②
DNDI-6174 ③

Leishmaniasis
Filariasis

AWZ1066S ④

Mycetoma

E1224 Eumycetoma project(Phase II/III study) ⑤

Malaria

SJ733 (Phase II study) ⑮

Inhibitor of DHODH ⑥

BRD5018 ⑪

Screening of novel compounds ⑦

E1511 ⑫

Malaria vaccine(using immunostimulant E6020) ⑧

SJ733 (suppository formulation) ⑬

Inhibitors oflysyl t-RNA synthetase ⑨

Anti-CSP monoclonal antibody ⑭

Inhibitor of tryptophan synthase ⑯

R&D Consortium for NTDs and3 major infectious diseases

WIPO Re:Search ⑰
NTD Drug Discovery Booster ⑱

TB Drug Accelerator ⑲

R&D Consortium for Pandemic andAntimicrobial Resistance (AMR)

COVID-19 Therapeutics Accelerator ⑳

AMR Screening Consortium ㉑■Main partners in the projects① Universidad Nacional de La Plata (Argentina)② Sabin Vaccine Institute (U.S.)③, ⑤, ⑱ Drugs for Neglected Disease initiative (DNDi) (Switzerland)④ Liverpool School of Tropical Medicine (U.K.), University of Liverpool (U.K.)⑥ Broad Institute (U.S.), Medicines for Malaria Venture (MMV) (Switzerland)⑦, ⑫ Medicines for Malaria Venture (MMV) (Switzerland)⑧ Fundação Oswaldo Cruz (Fiocruz) (Brazil)⑨ University of Dundee (U.K.), Medicines for Malaria Venture (MMV) (Switzerland)⑩ University of California, San Diego (U.S.)

49

Eisai Value Creation Report 2023

Eisai has provided 1.6 billion DEC tablets free of charge in
25 developing countries in the five years from 2014 to2018. The result of the calculations by Yanagi and Freiberg(2022) using the impact-weighted accounting (IWA)
method＊1 calculated the social impact generated by thethose who can avoid infection through drug treatment,
multiplying the number of subjects and the average life
expectancy, taking into account the healthcare costs thatcan be saved. Dividing the lifetime social impact ofapproximately 7 trillion yen by the average life expectancy(43 years for Benefit Cohort 1 and 2, and 33 years for
Benefit Cohort 3), the annual average social impact from
Eisai’s contribution was calculated to be approximately
160 billion yen per year.

effect of the free provision of DEC tablets to reachapproximately 7 trillion yen (Table 1). This figure wascalculated by multiplying the minimum wage by theworking hours that can be recovered by patients andTable 1. Social impact of free provision of DEC tablets (2014–2018)(Unit: Millions of yen)

Lifetime Social Impact

Annual Average Social Impact

Benefit Cohort 1＊1

7,696,728

178,994

Benefit Cohort 2＊2

5,072,366

117,962＊3

Benefit Cohort 3

765,921

23,210Total Social Impact

13,535,015

320,165

Social Impact Created by Eisai’s Contribution

6,767,507

160,083

Source: R yohei Yanagi and David Freiberg, “Monthly Capital Market” September, 2022 issue, “ESG Accounting for offering neglected tropical disease treatment withprice zero”＊1 Benefit Cohort 1: People who have avoided being infected with LF through reduction of the risk population with mass drug administration (MDA)＊2 Benefit Cohort 2: People infected with LF who were able to avoid aggravation of their condition from asymptomatic to clinical illness＊3 Benefit Cohort 3: People who have been infected with LF and are in a state of clinical illness but have been able to avoid further deterioration of their condition

Social impact creation targets through free provision of DEC tablets＊2
We will continue to provide DEC tablets to LF-endemic
and calculating the social impact of the free provision ofcountries in collaboration with the WHO and others until
DEC tablets from 2014 to 2018 using the same method,
the disease is eliminated. By assuming contributions in thewe calculated the fiscal 2025 and 2030 social impact
future to approximately 12 million more people
targets through the free provision of DEC tablets (Table 2).
(contributions to approximately 19 million people from
As a result, we calculated the creation of 260 billion yen of2014 to 2018) through the provision of DEC tablets tosocial impact in fiscal 2025 and 280 billion yen in fiscal
India, the world’s largest LF-endemic country, and others,
2030.
Table 2. Social impact targets of free provision of DEC tablets (fiscal 2025, fiscal 2030)
Annual Average Social Impact

Exploratory research on
prophylaxis by ASOs ⑩

Tuberculosis (TB)

Visualization of Non-Financial Capital:
Impact-Weighted Accounting of Free Provision of Diethylcarbamazine (DEC) Tablets⑪ Broad Institute (U.S.), Department of Defense (U.S.)⑬ University of Kentucky (U.S.), Medicines for Malaria Venture (MMV) (Switzerland)⑭ Ehime University (Japan), GlaxoSmithKline plc. (U.K.), PATH (U.S.)⑮ University of Kentucky (U.S.)⑯ Broad Institute (U.S.), Colorado State University (U.S.), University of Chicago (U.S.)⑰ World Intellectual Property Organization (WIPO) (Switzerland), BIO Ventures for
Global Health (BVGH)⑲, ⑳ Bill & Melinda Gates Foundation (U.S.)㉑ Global Antibiotic Research and Development Partnership (GARDP) (Switzerland)

Fiscal 2025

Fiscal 2030

Benefit Cohort 1

Approx. 290 billion yen

Approx. 330 billion yen

Benefit Cohort 2

Approx. 200 billion yen

Approx. 200 billion yen

Benefit Cohort 3

Approx. 30 billion yen

Approx. 30 billion yen

Total Social Impact

Approx. 520 billion yen

Approx. 560 billion yen

Social Impact Created by Eisai’s Contribution

Approx. 260 billion yen

Approx. 280 billion yen＊1 Ryohei Yanagi and David Freiberg, “Monthly Capital Market” September, 2022 issue, “ESG Accounting for offering neglected tropical disease treatment with price zero”＊2 Future targets were estimated internal by applying the method and basic data of Yanagi and Freiberg (2022)※ The Premise of Product Impact Accounting• Social impact of Eisai’s free provision of DEC tablets for five years from 2014 to 2018, based on the contract with WHO, was quantified based on the IWA method.
• The 5-year free provision of DEC tablets was 1.6 billion tablets at a total investment (manufacturing cost) of approximately 2.4 billion yen, and DEC tablets were
provided to 25 developing countries to be used for MDAs in combination with GSK’s LF treatment.
• According to the WHO guidelines, an average of 2.5 DEC tablets are taken per person per MDA (varies depending on body weight), and LF can be controlled by
MDA once a year for 5 years. Eisai provided 1.6 billion DEC tablets over five years, taken by 150 million people. Applying the model of Turner et al. (Turner et al.,Infectious Diseases of Poverty (2016) 5:54), 7.6 million people can avoid chronic LF, and 1 billion attacks can be avoided even in the acute phase of LF based on
the number of users.
• The calculation is limited to the period and the countries/regions where MDAs were performed with a combination of two LF treatments, Eisai’s diethylcarbamazine(DEC) and GSK’s albendazole. Assuming that our social impact contribution belongs to a 50:50 ratio, we can say that half of the total impact was Eisai’s social
impact creation.

Eisai Value Creation Report 2023

50

Materiality to Effectively Realize
Social GoodThis part explains materiality, which has been redefined as animportant initiative that forms the basis of corporate activities
to embody the corporate concept of hhc.
Please refer to the previous chapter (Realization of Social
Good in Three Areas) for information on our efforts to realizesocial good in the areas of dementia, oncology, and global
health.

Dementiaarea• Financial strategy• Enhancement of corporate governance(Enhancement of management oversight function)• Enhancement of information disclosure＊1• Enhancement of information security• Stable supply of high-quality products＊2• Compliance and risk management• Protection and enhancement of intellectual property＊3• Business activities based on respect for human rights• Business activities with consideration for the global environment• Safety management for products＊4• Ethical and transparent drug creation activities＊5

Please check our website for the following items not described in this report.
＊1 Corporate Governance Principles. Article 8
https://www.eisai.com/company/governance/cgregulations/cgguideline/index.html＊2 https://www.eisai.com/sustainability/society/customer/supply/index.html＊3 https://www.eisai.com/company/business/research/ip/index.html＊4 https://www.eisai.com/sustainability/atm/pharmacovigilance.html＊5 https://www.eisai.com/company/business/research/discovery/index.html

do

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iz a tio n of h u m a n re s o u rc e v al u

y,

eg

lit

• Maximization of human resource value

xi m

tr

at

ri a

• Realization of social good in global health area

Maan

Global health
area

at e

• Realization of social good in oncology area

Oncology
area

s

15 M

y

• Realization of social good in dementia area

Concentrating
management
resources into
three areas

e

an
, fin

cia

ls

Maximization of Human Resource Value

CHRO Message

Vice President
Chief HR Officer“Human capital management” centered on human capital is
attracting attention. Not only is there a growing awareness ofthe strong link between management strategy and humanresource strategy attracting attention, but there is also ademand for greater disclosure of information on human capital.
At the 2022 Annual General Meeting of Shareholders, Eisai
added “respecting human rights and diversity”, “providing fullopportunities for growth in support of self-fulfillment”, and“creating an employee-friendly environment” to the Articles ofIncorporation, in addition to “ensuring stable employment”,
which was previously stipulated. Based on these internal andexternal changes, we have formulated an “Integrated HR

Data Section

Maximizing Human Capital Value using Global Engagement Survey

We aim to evolve into a company, where employees who “empower people to realize their fullest life”
with diverse values work together to lead effective realization of social good and maximization of social
impact by enhancing job satisfaction of every employee.

Teruyuki Masaka

Materiality to Effectively Realize
Social Good

Realization of Social Goodin Three Areas

Management Strategies

Strategy” which focuses on “well-being including employee
health”, “diverse workstyle”, “employee growth”, and“organizational and business growth” in fiscal 2022. Since April
2023, human resource system has been enhanced by the
introduction of a remuneration system based on role and anevaluation system focusing on demonstrated behavior with theaim of motivating employees to grow autonomously and takeon higher roles. As for DE&I (Diversity, Equality & Inclusion),
which is the foundation of HR strategy, we were awarded the
grand prize in the basic category of the 2023 J-Win Diversity
Award, in recognition of our past activities. In addition, in July
2023, we published the Human Capital Report 2023＊1, whichsummarizes human capital initiatives and KPIs linked to humanresources strategies. Based on the hhc concept, we willcontinue to ensure an environment in which the diverse talents
who gather at our company can work in good health and witha rewarding job as well as establishing a strategy, work on
measures to encourage employees to proactively work on
growth and reskilling, and implement a system to maximizeorganizational performance leveraging strength and uniquenessof individuals. We will realize hhceco through the active
participation of diverse talents and collaboration with otherindustries and aim to make an impact on a diverse range ofstakeholders, such as customers, communities and the wholesocieties by providing new value to patients and the people.

To maximize the value of human resources, we have introduced

facilitating dialogue based on mutual understanding of diverse

an annual global engagement survey since fiscal 2021, surveying
and indexing the awareness of employees awareness of
employees on the company, work and organizational culture in all
global companies of the Group, and utilized the results foranalysis and action. In the second survey in fiscal 2022, theoverall Employee Engagement Score, which uses the percentageof employees who responded positively about their attachment
to the company and their work, engagement drivers and vitality,
remained at 85%, the same as last year, outperforming the
average of the global pharmaceutical companies. In particular,
96% agreed with the corporate concept and vision, and 89%
were conscious of ESG and social contribution, showing thestrength of the company. Regarding psychological safety, which
was newly introduced as a survey item, the score for seven
related questions was 82%, which also exceeded thebenchmark. On the other hand, in terms of the “environment
where innovation can be created”, where there is room for
improvement from the previous fiscal year, we arestrengthening initiatives for various measures, such as

values and ideas and fostering an organizational culture thattakes on challenges without fear of failure and leads to learningfrom the results, and support for the acquisition of new skills.
In addition, regarding the item of “well-being” where there
was room for improvement in the fiscal 2022 survey, we are
striving to improve the environment with the extension of thesystems to increase flexibility of workstyle, such as thepromotion of smart work based on the concept of Work LifeBest and a planning-type discretionary work system. The
results of these surveys are used for improvement in actions ineach region, as well as for verifying and strengthening HR
strategies. In addition, from fiscal 2022, we have incorporated
the global engagement survey into the performance-based
compensation indicators for Corporate Officers to enhancemid- to long-term human resource value. In the global
engagement survey, we aim to increase the percentage of
employees who highly engaged to the company from 85% in
fiscal 2022 to 90% or more in fiscal 2025 and fiscal 2030.

Results of fiscal 2021 global engagement survey

Results of fiscal 2022 global engagement survey
77

Understanding of DE&I

Understanding of Diversity & Inclusion

78

Environment for generating innovation
Environment for generating innovation

70

Empathy with concept and vision

73

96

Overall engagement
Empathy with concept and vision

96

85

Psychological safety index82

ESG (Social contribution)
85

Overall engagement

20

40

60

80

89

Well-being
100 (%)

77
20■ Eisai Group (Eisai Co., Ltd. And Group companies in and outside Japan)

40

60

80

100 (%)■ Eisai Group (Eisai Co., Ltd. And Group companies in and outside Japan)

Initiatives Towards Enhancement of Organizational Strength

HR Strategy based on Visualization of Human Resource Investment Efficiency＊2 and Utilization of Data
Employee Impact Accounting
Eisai’s efficacy of investment in human resources was 75.19%
based on the analysis of fiscal 2019＊3, showing high value. On
the other hand, it became apparent that there were issues withdiversity-related indicators. As a result of initiatives to addressthese issues, the efficacy of investment in human resources
was improved to 80% in fiscal 2022.
Going forward, we will proactively work on initiatives toimprove the ratio of female employees, the ratio of female

53

Eisai Value Creation Report 2023

managers, and the number of female appointments toorganizational heads with the aim of achieving dramatic
improvement to 82% in fiscal 2025 and 87% in fiscal 2030.
Fiscal year20192022 ＊42025 ＊52030 ＊5

Human resource
investment efficiency (%)

75.19

80

82

87

In order to visualize important positions and talents in thecompany globally, we identify important positions and formulate
a succession plans with talent requirements and skill maps. At
the same time, we have created development plans based on
the experience and knowledge of successor candidates and are
striving to produce global leaders systematically and sustainably.
For positions that cannot be filled with the existing talents, wehire personnel and reassign personnel across regions tostrengthen our global talent management. Regarding nextgeneration talents who have been recognized through these
activities, corporate human resource managers conductindividual interviews on-site, and work to create a talent map that
includes not only the status of duties but also future career plansof candidates.

＊1 For further information regarding human capital, please refer to the Human Capital Report 2023.
https://www.eisai.com/ir/library/annual/pdf/epdf2023hcr.pdf＊2 Employee impact/Total salary (labor cost). The IWAI (impact weighted accounts initiative) method was used to calculate the employee impact, such as the degree ofcontribution to the gender wage gap and unemployment rate, and to calculate the ratio with personnel expenses.
＊3 For further information regarding the employee impact accounting, please refer to page 66＊4 Fiscal 2022 results are based on internal estimates＊5 Target values for fiscal 2025 and fiscal 2030 are besed on internal estimates

Eisai Value Creation Report 2023

54

Realization of Social Goodin Three Areas

Management Strategies

Initiatives to Promote Diversity Equity & Inclusion (DE&I)

Efforts in Japan to Maximize the Value of Human Resources

Global DE&I Promotion System

Data Utilization in Human Resource Management

Eisai is promoting the creation of a corporate culture, in which
talents with diverse values can thrive regardless of nationality,
gender, age, and others. We have also built a governancesystem by holding to promote DE&I Promotion Committee leadby the CHRO and regularly reporting to the Board of Directors
on the progress of DE&I. In promoting this, we utilize
engagement surveys and assessments by external evaluation
organizations. According to the results of the global

engagement survey, there is room for improvement in terms ofunderstanding of DE&I and the environment for creating
innovation. In order to promote a deeper understanding of
DE&I, we are moving forward specific projects in each global
region to promote DE&I. In addition, we are working tostrengthen measures to promote dialogue in order to improvethe environment in which innovation can occur.

Eisai’s targeted DE&I promotion system
R&D

Frequency of sharing scores (N=2,638)

Manufacturing

DE&I
project

DE&I
project

Regional function

Marketing
Japan

DE&I
project

Data Section

action plans, the more awareness of employees on thecompany, work and organizational culture in all global
companies of the Group implements action plans for review
and improvement based on the scores, the more wevox
scores improve. In fiscal 2022, we had continuously promoted
the use of dialogue, such as holding workshops aimed atfurther improving the quality of discussions and the number oforganizations that implement improvement actions.

Relationship between frequency of dialog and wevox score fluctuation (out of 100 points)

Global function
GeneralAdministration

In addition to the above-mentioned annual global engagement
survey, Eisai Co., Ltd., the parent company in Japan havebeen conducting monthly pulse survey wevox (employee
engagement measurement tool developed and operated byAtrae, Inc.) since 2020. Approximately three years of data havebeen accumulated so far, and there is a correlation that themore each organization takes measures by sharing wevox
score, having a dialog to review the core, and implement

Materiality to Effectively Realize
Social Good

DE&I
project

Americas
DE&I
project

China

EMEA

DE&I
project

Asia/Latin America

DE&I
project

DE&I
project

DE&I Promotion Committee
Chair: CHRO, Secretariat: Global HR, held twice a year Global HR Strategy Dept. Held twice a year.
Formulation of a medium- to long-term vision and confirmation of strategies

Annual/sequential reporting

Supervision/advice

Global HR Leaders’ Dialog Meeting. Held 4 times a year
Strategic outline planning and progress monitoring for seniors, life events, and management reforms

Board of Directors

Frequency of review discussions based on scores (N=2,637)

Frequency of action plan implementation (N=2,633)

2.0

2.0

2.0

1.5

1.5

1.5

1.0

1.0

1.0

0.5

0.5

0.5

0.0

0.0

0.0

-0.5

-0.5

-0.5

-1.0

-1.0

-1.0

-1.5

-1.5

-1.5

-2.0

-2.0

-2.0

-2.5

-2.5

April

OctoberMarch■ periodically

April

October■ once every few month

-2.5

March

■ not implemented

April

OctoberMarch■ average

Subgroup meeting. Held once in two weeks

Examples of Global Initiatives -EMEAand thoughts from over 70 individuals. We all felt that our DE&I
vision should reflect our commitment to hhc, to society and to
our employees and to show our commitment to Diversity andInclusion should not be simply the voice of senior leadership.
Equitable diverse and inclusive organisations are more
successful in the long term. We have incorporated elements of
DE&I into our 2023 EMEA management goals. We will continue
to promote DE&I in the belief that all activities start withcommitment and lead to goals and plans.

EMEA DE&I Commitment Statement
Our commitment is;• To embrace and celebrate our differences, respecting and valuing eachother
• To include equity, diversity and inclusion practices in all that we do soeveryone has a full sense of belonging• To value individual talent where every employee can be themselves andthrive in an environment of openness, trust and integrity

Eisai Value Creation Report 2023

Correlation between overtime hours and engagement score/driver
Overtime
hours
Engagement

Relationships

ApprovalSupportOrganizational
cultureOvertime
hours

Engagement Relationships

ApprovalSupportOrganizational
culture・・・※ The figure is a sample image showing the correlation between each element.

Enhancement of Growth Opportunities that Support Self-Fulfillment
Diverse employees play a key role in achieving sustainablebusiness growth through the creation of solutions to social
issues, and we are strengthening the creation of a system inwhich all employees learn by oneself, learn from each other,55

are conducting management that is closer than ever to thethoughts and circumstances of each employee.

・・・The EMEA region is proactively promoting DE&I. In fiscal 2022,
under the initiative of the CFO of the EMEA region, agovernance structure for the EMEA Management Board wasestablished and an DE&I steering group was formed to coverboth strategic and operational activities alongside focussed
workstreams for the key activities on the DE&I roadmap are. It
was important that we lead from the top; to ensure leadershipis best able to do this the EMEA senior leadership team and
key DE&I stakeholders attended intense face to face training insmall groups with an DE&I expert external provider toencourage open discussion and inclusivity. As part of the DE&I
initiatives, we recognised and celebrated International Women’sDay for the first time at London and collectively across the
EMEA countries.
In addition, we ran a number of sessions with groups of
EMEA employees to get feedback on our thoughts and to help
shape our EMEA DE&I commitment statement throughout Q4
of fiscal 2022. This vision is diverse and inclusive with ideas,

The obtained data is analyzed for correlation with otherpersonnel-related data, and we promote data-driven proposal
and execution of measures. For example, by building aretirement risk prediction model based on engagement scores,
differences in engagement scores and driver scores wereconfirmed in comparisons between all employees and those
who retired for personal reasons, which is valuable formeasures of retention of employees. In addition, we aim to
implement further data-driven measures, such as issuing alerts
based on the correlation between overtime hours/healthmanagement hours and engagement scores/drivers.
Until now, this data has been used only within HR
organizations. By visualizing and providing it to every businessorganizations, we will strengthen utilization and support fororganizational management such as communication between
supervisors and employees. In addition to building mutual
understanding and mutual trust through dialogue, we are
realizing organizational management with a multi-faceted
approach through data-based management support, and weand continue to grow, regardless of age, background, or
position. In order to promote the growth of our employees, weare extending multi-faceted approaches with important themes
empathize with the hhc concept and the company’s strategy,

Eisai Value Creation Report 2023

56

Realization of Social Goodin Three Areas

Management Strategies

have a desire to achieve self-fulfillment, manage ansenior employees (TAKUMI). We support career design thatwith metabolic syndrome or potential metabolic syndrome isorganization that connects diverse individual challenges to theinterweaves work and life, leading to sustainable growth.

increasing year by year. Considering these issues, we will work

growth of the individual and the organization, and provide

From fiscal 2022, we are focusing on strengthening

opportunities to support diverse career development.
First, in order to foster employees’ career outlooks towards
self-fulfillment, which is our starting point, we continue tomotivate employees to realize hhc by incorporating an hhc
activity (socialization) into training at every milestone during
their careers, including an on-boarding training. In addition, we
support self-understanding and understanding of others
through various career design programs and individual career
counseling (named career café), and work to increase
motivation for self-realization and self-growth. Regarding career
design programs, we have set up programs according to theneeds and issues of employees, such as young employees,
female employees (E-Win＊1), employees who are parenting(E-papa and E-mama community), and middle-aged andorganizational management, and moving away fromorganizational management centered on task management
aimed at creating short-term results. Instead, we focus on
strengthening our people management capabilities to closely
support growth of various employees while sharing thesupervisor’s own vision from mid- to long-term perspectives.
Specifically, we have introduced a visionary leadership program(newly established) and a mentor program for organizational
heads, held workshops aimed at revitalizing dialogue within theorganization, and developed networks among organizational
heads that transcend divisions and functions. We believe thatthe improvement of the people management capability of thehead of the organization will lead to the acceleration of thegrowth of each employee.

Development programs to foster autonomous growth of employees
Visionary leadershipfor organizational head

Outside program

Liberal arts/
education(Career coaching and others)

Workshop for organizational head

Mentor program
Career consultation(Career café)

e-Learning

Career workshop

Training for newly
appointed managers

Various educational/
open seminar

Leadership program

New employee training

Required program

Various educational/
open seminar

Various educational/
open seminar(unconscious bias, DE&I)

EKKYO program(internal internship program)(Support self-enlightenment/
professional gym/
Learning foreign language)

Career design
e-learning

Career design program

Learning reform program

Training for neworganizational head

Reskilling
Providing opportunities for leaning/new challenge

Various selective program

Study abroad/MBA certification

E-LEAD＊3

Producing TAKUMI＊2

Overseas training

Cross-border external experience

Female leader development program

Program for mid-career employees

Forming various values/
networks

Outside program (J-Win＊4 and others),
Mentor program,
E-Win

As the environment and values surrounding each employee
become more diverse, we are working to create a work
environment where diverse employees can work in a highly
productive, healthy, and self-reliant manner in a variety ofenvironments based on the concept of Work Life Best (WLB),
which seeks the best in both work and life, rather than seeking
a balance between work and life. In the past, we have taken
steps to increase the flexibility of working locations and hours,
such as removing restrictions on the number of days that thework-from-home system can be used and eliminating the core
hours of the flextime system. As a management update toreview the traditional relationship between organizational heads
and members, we are working on initiatives such as the
Genealogy of work style reformMore diverse
employees/
work styleFlexibility of
workplaceand time

Promoting growth of employees through engagement between organizational heads and members

Balancing workand life
2012 Introduced 65-year-old
retirement system

Introduced
Work-from-home systemfor childcare and nursing care
Introduced 60 years old
refresh vacation

57

Eisai Value Creation Report 2023

Outstanding Organization Recognition Program (White 500)
organized by the Ministry of Economy, Trade and Industry andNippon Kenko Kaigi since 2017, and have been certified 5times, including 2018, 2019, 2021, 2022, and 2023. On theother hand, our employees’ regular health checkup rate has
not reached 100% (99.93%), and the number of employees

Strengthening- Expand awareness ofdementia prevention brain performance self-check tool NouKNOW®

Early detection ofcancer risk

- Consider implementation of new cancer tests such as
tumor marker tests- Implementation of health events for all generations to
reduce the number of people who fall under the metabolic
syndrome and pre-metabolic syndrome criteria

Enhancement of
support system- Consider expanding the Welfare Mutual Aid Association’s“Survivor’s Mutual Aid Pension” to provide support andpreparation in the event of an emergency

issuance of management guidelines, management seminars,
and support for timely and interactive information sharing using
ICT tools such as Microsoft Teams and BOX. In addition, sinceApril 2023, we have introduced a side job system as anopportunity to think about career development and increase
diversity within individuals, developed a “workation” system aspart of promoting mental and physical health promotion andtaking paid leave, and expanded the discretionary labor system
to increase independence and discretion of employees. We
believe that pursuing the WLB of our employees will eventuallylead to the construction of the hhceco model that supports
them in living their fullest lives in a way that suits them.

Expanded mobile workfor employees workoutside of offices(expansion of work from home)
Enhanced work conditions
for temporary/part-time job
employees such as leaveof absence, vacation, etc., andcontinuous employment system

Expanded
work-from-home system(permitted for reasons otherthan childcareand nursing care)

Expanded the eligibility of
Welfare Mutual Aid Association,
Stock Ownership Association andAsset Formation Savings
were expanded for temporary
and part-time workers

Unified of working hours
for all business sites

Shortened core time under
the flextime system

Combined use forshort time work forchildcare, etc.
and flextime system

Shortened core time under
the flextime system

Expanded conditions forlong-term medical leave(cancer, dialysis,
fertility treatment)

Introduced the system toallow taking a leave toaccompany spouseon overseas assignment＊ At the 2022 Ordinary General Meeting of Shareholders, “respecting human rights and diversity”,“providing full opportunities for growth in support of self-fulfillment”, and “creating an employee-friendly environment”
were added to the Articles of Incorporation, in addition to “ensuring stable employment”.

2017

In June 2019, Eisai issued “Eisai Health Declaration”. By we
aim to create an environment in which employees, who are themain players in our evolution into a company that “empowers
people to live their lives to the fullest”, through the developmentof hhceco model. As a result of a series of initiatives, we havebeen participating in the Health and Productivity Management- Expansion of regular health checkup items- Consider the introduction of checkup result prediction
simulations

Creating an Employee-Friendly Environment• Past/present/future• Point of view/thought, feeling, preference, values• Strength, uniqueness, challenges to overcome and others

Initiatives for Well-being, Including Employee HealthExpansion ofhealth checkups

expanding the list of regular health checkup items andintroducing simulations to predict health checkup results. At
the same time, in light of our two major strategic areas, we will
promote measures to strengthen dementia prevention andearly detection of cancer risks.

Development of future managements

than designated group training. We provide employees with new
growth opportunities and chances to take on the challenge ofcareer development on their own initiative, and we are working
to create a system that allows them to grow toward selffulfillment while accumulating diverse experiences.

Data Section

Future Measureswith the Eisai Health Insurance Association to consider

Building own foundation

Our training program, which is oriented toward building a diverse
range of careers, aims to shift from company-led careerdevelopment to self-directed career development based on
one’s own sense of values and willingness to take on challenges.
It is centered on voluntary participatory training programs rather

Materiality to Effectively Realize
Social Good2018

Introduced a clothingliberalization based on self-branding
and self-management

Empowering
people to live life
to the fullest

Establishedself-enlightenment andsocial contribution leave
Introduced privately financed
study abroad leave system
Introduced an optional
defined contribution
pension system for temporary
and part-time employees

Introduceda side job system

Distributed company
mobile phones to all employees

Expanded
Discretionary Labor System

Introduced interval
compensatory leave

Lifted the restriction on number ofuses for work from home

Introduced a short working
hours system for personal
injuries and illnesses

Abolished core timeof flextime system

Continuing to
improve the work
environment basedon the concept of WLB

Partially amended
the Articles of Incorporation＊
Formulated
an integrated HR strategy

Introduced the system
for spouse maternity leave

Expanded working fromhome scope, such as
work from parent’s homeStrengthened and reinforced
the personnel system forthe purpose of motivationand growth support

Introduced
Eisai Health Declaration

Introduction of hourly acquisitionof nursing care leave

Introduced “workation”
system

2019

2020

2021

2022

・
・
・

＊1 E-Win (Eisai Women’s Innovative Network): Career development program for female employees＊2 TAKUMI (Japanese word for professional): A veteran employee with an aspiration to assist next-generation employees to convince the importance of taking new challenges tocreate new value＊3 E-LEAD (Eisai-Leadership program to Empower and Accelerate our Future with Dream): A project execution type in-house recruitment selection program aiming to launch a
new business＊4 J-Win: Female leader development program by non-profit organization, J-WIN

Eisai Value Creation Report 2023

58

Realization of Social Goodin Three Areas

Management Strategies

CFO Message
Aiming to maximize
long-term shareholder value
by enhancing financial
and non-financial capital

Mitsuru ShomonVice President
Chief Financial Officer
Head of Corporate Finance and Accounting HQs

Reflecting on Fiscal 2022
I am Mitsuru Shomon and I became CFO on July 10, 2023.
Until now I have supported the CFO as Head of Corporate
Finance and Accounting HQs, where I implemented financial
strategies that contribute to enhancement of corporate value.
Going forward, as CFO I hope to combine a corporate
management perspective with my own experience andknowledge to maximize Eisai’s shareholder value.
For Eisai, fiscal 2022 was the second year of the EWAY
Future & Beyond medium-term business plan, which began in
fiscal 2021. In this rapidly changing global businessenvironment, it was a year of swift management decisions andaccurate decision making, while retaining a medium- tolong-term management perspective, to achieve Eisai’sbusiness goals and sustainable growth.
In fiscal 2022, our revenue was 744.4 billion yen (YoY 98%),
operating profit was 40 billion yen (YoY 74%), and profit for theyear attributable to owners of the parent was 55.4 billion yen(YoY116%). The 5-year average ROE listed in Eisai’s financial
strategy was 9.8%, Net DER was -0.21, the ratio of equity
attributable to owners of the parent was 63.3%, and Net Debt/
EBITDA was -1.9 years. In terms of financial integrity, we havemaintained sufficient achievement of KPIs in this period ofproactive investment. The year-end dividends for fiscal 2022

were 80 yen per share, and combined with the interim dividendof 80 yen per share, this results in an annual dividend of 160
yen per share (same as the previous year).
It is regrettable that we could not achieve our forecast(revenue of 760 billion yen and operating profit of 55 billion yen)for fiscal 2022 due to the acceleration of investment for growthin the dementia area, but as we continue to invest in suchgrowth strategy. While investing in these growth strategies, wewill continue to implement thorough business management toincrease the probability of achieving our forecasts.

Materiality to Effectively Realize
Social Good

Data Section

say social impact, we have provided value to stakeholders

opportunities and providing sustainable and stable shareholder

such as patients, their families, caregivers, health care

returns based on a strong balance sheet.

professionals, payers, and governments, and as a result, we
reward our employees while also maximizing the intrinsic
corporate value of the company and the value to shareholders,the “shareholder value”.
I believe that Eisai’s intrinsic corporate value consists offinancial value and social impact. As for our financial strategy,
therefore, our position is unchanged: we should consider not
only financial capital, but also non-financial capital which is
associated with Market Value Added.
With regard to capital policy, which is the basis of our
financial strategy to strengthen financial capital, we willcontinue to focus, as we have until now, on developing ourthree core principles of medium- to long-term ROE
management, sustainable and stable shareholder returns, andvalue-creative investment criteria for growth, which contributeto increasing shareholder value while ensuring financial
integrity. As CFO, one of the most important responsibilities is
to generate and allocate cash flow and I understand that I will
be increasing financial integrity and improving capital efficiency
through balance sheet management. With the effort to date,the company’s financial integrity is in a solid state as of the endof fiscal 2022, and we are confident that we will be able toimplement future growth strategies, particularly in our organic
business, invest in business development by grasping growth

However, Eisai is now at a turning point due to the future
global approval of LEQEMBI® in countries and the profit
contribution. We will be flexibly looking into a new capital policythat expands capital allocation to investment in growth andshareholder returns.

Quantifying Social Impact and Improving
Corporate Value through Dialogue
With regard to non-financial capital, we will enhance disclosure
related to non-financial capital in the Annual Securities Report
and, with a focus on responding to the Corporate Sustainability
Reporting Directive (CSRD) in Europe, collaborate internallywith the relevant organizations, such as the Sustainability
department, consolidate information related to non-financial
capital, including intellectual capital and human capital, andenhance disclosure.
Furthermore, Eisai’s various business activities produce agreat social impact. We are striving to enhance disclosure in
reports such as the Annual Securities Report and the Eisai
Value Creation Report and expand market value-added whilefurther promoting the quantification of that social impact
through impact-weighted accounting.
In addition, we believe that collaboration with the Investor

Maximization of financial value
Strong balance sheet to achieve both investment for growth and stable dividends
March 31, 2023

YoY balance

Net cash 1

165.4 billion yen-73.8 billion yen

Net DER 2 (Times)

ｰ0.21

+0.11

Shareholders’ equity(Attributable to owners of the parent)

800.0 billion yen+51.1 billion yen

Ratio of equity attributable to owners of the parent(Equity to total assets)

63.3%

+2.9%

Adhere to the KPIs
for optimal capital structure
Net DER-0.3 to 0.3
Ratio of equity attributableto owners of the parent

60% level

Balancing Investment in Growth Strategies with
Sustainable and Stable Shareholder Returns
On January 6, 2023, LEQEMBI® received accelerated approval
from the U.S. FDA for the treatment of Alzheimer’s disease,and full approval from the U.S. FDA on July 6, 2023. We
expect to be able to obtain approval in Japan as well during
fiscal 2023. As we enter this new stage, I would like to restate
Eisai’s basic approach to our financial strategy as follows.
Under the hhc concept, as amended in the Articles ofIncorporation by special resolution at the 2022 General
Meeting of Shareholders, Eisai aims to “achieve the social
good of relieving anxiety over health and reducing healthdisparities”. By effectively achieving social good, which is toContinue to secure
net cash position

Achieve both investment for growthand stable dividends

Dividends within the range offree cash flow on multi-year basis

Aim to maintain investment for growth and stable dividends based on financial integrity
Aim to maximize medium- to long-term shareholder value through growth centered on LEQEMBI®＊3

Dividend payment is subject to annual resolution by Eisai’s Board of Directors＊1 Net cash = Cash and securities (Cash and cash equivalents + Time deposits exceeding 3 months + Investment securities held by the parent company) – Interest-bearing debt
(Corporate bonds and loans)＊2 Net debt equity ratio (Net DER) = (Interest-bearing debt (Borrowings) – Cash and cash equivalents – Time deposits exceeding 3 months, etc. – Investment securities held by
the parent company) / Equity attributable to owners of the parent＊3 Antibody for Alzheimer’s disease produced as the result of a strategic research alliance between Eisai and BioArctic AB. Collaboration with Biogen Inc. Generic name:Lecanemab

甲状腺がん 1Ｌ

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Management Strategies

Relations department is important in improving the financial

We will also make solid investments in further businessvalue and social impact that make up our intrinsic corporate

expansion in China, India, and Africa. At the same time, wevalue and maximizing long-term shareholder value throughcontinue to invest resources in the establishment of thefinancial and non-financial capital. We aim to encourage theformation of appropriate stock prices over the medium- tolong-term and maximize shareholder value by supporting
appropriate disclosure and dialogue with shareholders throughinvestor relations activities.

dementia ecosystem in order to achieve the Eisai hhceco
model.
On the other hand, it is also necessary to consider the factthat deviations from the assumed scenario will occur, and we
intend to maintain the ratio of equity to total assets at the 60%
level while ensuring the necessary investment capacity toenable flexible investment and allowing for the accumulation ofa constant equity.
Furthermore, when business is expanding, the ROE level
increases in the medium- to long-term, and we believe it isnecessary to flexibly improve the DOE level as revenue grows.

Maintaining Financial Strategy and Effectively
Achieving Social Good by Creating Social Impact
The direction of our financial strategy remains unchanged. For
more information on our financial strategy, please see page 62.
Future Direction of the Financial Strategy
Our financial strategy is to identify Eisai’s materiality, and, as
mentioned, develop it with a focus on medium- to long-term
ROE management, sustainable and stable shareholder returns,
and value-creative investment criteria in growth, which
contribute to improved shareholder value that considers thecreation of social impact in addition to financial value.
As the future direction of our financial strategy, in addition to
making sufficient investments in the expanded use of the
global product LEQEMBI® and the ongoing expansion of

Forecast for Fiscal 2023

indications for Lenvima®, we conduct reliable research andWe aim to steadily implement the financial strategies we haveformulated in order to maximize shareholder value through theeffective realization of social good by creating social impact inaddition to financial value, and we therefore ask for yourcontinued support in the medium- to long-term perspective.

development of and investment in next-generation treatment
pipelines that will follow as successors, such as anti-tau
antibody E2814 and in the Alzheimer’s disease area thenext-generation ADC MORAb-202, E7386, an inhibitor of the
CBP/β-catenin interaction, and others in the oncology area.

Eisai’s consolidated financial results for fiscal 2023 forecast
revenue of 712.0 billion yen (YoY 96%), operating profit of 50.0
billion yen (YoY 125%), profit for the year attributable to ownersof the parent of 38.0 billion yen (YoY 69%), ROE of 4.9%, DOE
of 5.9%, and dividends of 160 yen (same amount as previousyear).
Fiscal 2023 is an important year for Eisai, with the successof LEQEMBI® opening a new chapter to the hhceco model.

Fiscal 2030 targets and KPIs
Maximization of intrinsic corporate value (social impact + financial value)
while the company is in rapid growth• ROE at the 25% level, DOE at the 15% level
Increase financial robustness and secure growth investment capacity• Equity attributable to owners of the parent: more than 1 trillion yen,ratio of equity attributable to owners of the parent: 70% level, Net DER: - 0.3 to 0.3

Materiality to Effectively Realize
Social Good

Realization of Social Goodin Three Areas

Data Section

Financial Strategy
Aiming to improve shareholder value, the Group’s capital policy revolves around “medium- to long-term
Return on Equity (ROE) management”, “stable and sustainable shareholder returns”, and “valuecreative investment criteria”.

Financial strategy map for sustainable maximization of shareholder value＊1
Investor relations
Financial strategies
Stable and Sustainable Shareholder Returns

Medium- to Long-term ROE Management

Value-creative Investment Criteria

Dividend policy

ROE management- Signaling effect- Catering effect- Balance sheet management- Margin: Partnerships/FAM＊2/
M&A/Tax policy- Turnover: CCC/GCMS＊3- Financial leverage

Value-Creative Investment
Criteria : VCIC

Optimal dividend policy
based on an optimal
capital structure
KPI＝8% DOE model

Optimal capital structure
Trade-off theory
Credit rating: Single A level
Net DER＊4 : -0.3 to 0.3

Reduction of costof equity throughIR activities- NPV & IRR- Risk-Adjusted Hurdle Rate (RAHR)

Cost of equity
Pecking order theory
Cost of equity: 8%
Equity spread

PBR＝PER×ROE

Maximization of shareholder value

ROE Management —Targeting a Positive Equity Spread over the Medium- to Long-Term—
Eisai has been working to aim to avoid short-termism and toachieve ROE above cost of equity over the medium- to longterm (e.g., 5-year average) since the beginning of the 2000s. In
other words, Eisai aims to create a “positive equity spread(ROE – Cost of shareholders’ equity)”. Eisai has conservatively
assumed a cost of shareholders’ equity of 8%. Eisai is
generating a historical 5-year average ROE of 9.8% and apositive equity spread of 1.8%.

Improving Turnover
Eisai has effectively managed its cash conversion cycle (CCC)
to control working capital, and has improved asset efficiency
through the sale of assets, including investment securities. In
fiscal 2022, Eisai sold its strategic shareholding shares in 2
listed stocks (of which all its shares of 1 of the stocks). In
addition, Eisai sold all of its shares in 3 unlisted stocks, and allof its deemed shareholding in 2 stocks.

Increasing Margins
Eisai has focused on expanding high-profit global brands
discovered and developed in-house, such as Lenvima®,

Using Financial Leverage
Eisai has pursued an optimal capital structure while maintaining
financial integrity. Aiming to maintain a single A level credit
rating as a general rule, we have set the KPIs of Net DER of-0.3 to 0.3, a ratio of equity attributable to owners of the parentof 60% level and Net Debt/EBITDA＊5 of less than 3 years. By

Halaven®, and Dayvigo®. Eisai is aiming to improve its margin
by effective operation through utilizing partnerships andemphasizing careful selection of and concentration on priority
projects.

undertaking business activities based on financial discipline, we＊1 Ryohei Yanagi “CFO Policy: financial & non-financial strategies for value creation” 3rd Edition, Chuo Keizai, March 2023.
＊2 FAM: Fixed Asset Monetization＊3 GCMS: Global Cash Management System＊4 Net debt equity ratio (Net DER) = (Interest-bearing debt (borrowings) - Cash and cash equivalents - Time deposits exceeding three months - Investment securities held by theparent company) / Equity attributable to owners of the parent＊5 EBITDA：Earnings Before Interest, Taxes, Depreciation and Amortization

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Management Strategies

are steadily reducing interest-bearing debt, and we secured a

DER was -0.21, the ratio of equity attributable to owners of thesatisfactory net cash position as of the end of fiscal 2022. Net

parent was 63.3%, and Net Debt/EBITDA was -1.9years.

Trends in ROE by fiscal year and medium- to long-term value creation

Strong balance sheet —Dividend sustainability by maintaining
optimal capital structure—

(%)
20

18.6

15

10

Cost of equity(8%)

Historical 5-year
average ROE(9.8%)(Billions of yen)
800
628.1
600
59%
400

678.1

703.2

64%

65%

748.8

800.0

60%

63.3%

0
6.1

6.6

5

7.2

0
fiscal 2018

fiscal 2019fiscal 2020

fiscal 2021

fiscal 2022

■ROE(%)

60
40
20

200

10.4

(%)
80

-200

-200.2-400-0.32
End offiscal 2018-194.6-189.2

-0.29

-0.27

End offiscal 2019

End offiscal 2020-239.1-0.32
End offiscal 2021

-165.4
‑0.21

0
-20
-40

End offiscal 2022

Ratio of equity attributable to owners of the parent
Net debt equity ratio (Net DER)
Equity attributable to owners of the parent
Net interest-bearing debt
(Interest-bearing debt (borrowings) - Cash and cash equivalents - Time deposits exceeding three months,
etc. - Investment securities held by the parent company)

In principle, Eisai strives to maintain dividends within therange of free cash flow over multiple years. Eisai has
maintained a healthy balance sheet under present conditions.
Therefore, we intend to maintain a dividend of 160 yen per
share in fiscal 2023 with an intention to balance stable dividend
payment and investment for corporate growth. Acquisition oftreasury stock will be carried out appropriately after factors
such as the market environment, theoretical share price, andcapital efficiency (ROE) are taken into account.

Value-Creative Investment Criteria (VCIC)
Prioritization and selection of investments are becoming evenmore important for companies to achieve growth. Eisai has set
Value-Creative Investment Criteria (VCIC) for its strategic
investments to ensure value creation. When making
investments, we use Net Present Value (NPV) and the Internal
Rate of Return (IRR) spread using a risk-adjusted hurdle rate.

In setting hurdle rates, we factor in all risk elements, such as
the particular investment project, the investee country, andliquidity. We have approximately 200 types of hurdle rates, andwe apply the risk-adjusted hurdle rate appropriate for each
respective investment project. Eisai introduced VCIC in 2013
to ensure corporate value creation.

Funding Policy

Materiality to Effectively Realize
Social GoodAt Eisai, our goal is to increase corporate value by having a positive impact on society due to theincreased satisfaction of patients and the people in the daily living domain through the creation of
innovative new drugs. We calculate this social impact and endeavor to show the intrinsic corporate
value that is not apparent in revenue and profit. Furthermore, because the creation of innovative new
drugs requires long periods of time and enormous amounts of research and development expenses,
we believe it is important to avoid short-termism and instead assess corporate value from a mediumto long-term perspective, and we emphasize the importance of enhancing non-financial capital such as
intellectual capital and human capital.
Calculating Social Impact

Social impact in the dementia area
We calculated the targets for the social impact of LEQEMBI®
on U.S. society. In our calculations, we used the concept ofvalue-based pricing that had already been published in the
U.S.＊1 (see page 32).

Social impact in the global health area
We calculated the targets for the impact on society throughthe free provision of DEC tablets. We based our calculations
on product impact-weighted accounting for the free provisionof DEC tablets＊2 (see page 50).

Employee impact accounting
We calculated the future target of human resources investment
efficiency, which expresses the percentage of wages to
employees that brings value to society, based on the results ofanalysis performed in 2019 (see page 66) (see page 53)＊3.

corporate value because it is difficult to fully express in therevenue and profits of a profit and loss statement. We havecalculated this positive impact on society as social impact and
set it as a KPI for the 2025 and 2030 fiscal years.

Social Impact in the Dementia Area®

Social impact of LEQEMBI (U.S.)
Fiscal 2025

Approx. 260 billion yen

Fiscal 2030

Approx. 1.8 trillion yen

Social Impact in the Global Health Area
Social impact of free provision of DEC tablets
Fiscal 2025

Approx. 260 billion yen

Fiscal 2030

Approx. 280 billion yen

Employee Impact Accounting
Human resources investment efficiency
Fiscal 2025
Fiscal 2030

Eisai’s funding policy is based on the pecking order theory.
Eisai prioritizes cash on hand over debt, and equity financing is
the last option. As an efficient funding measure, Eisai has

Data Section

Visualization of Non-Financial Capital toward the
Evaluation of Eisai’s Intrinsic Corporate Value

The creation of innovative new medicines is expected to not
only treat patients’ diseases, but to improve quality of life,
including for their families and other people around them, andalso to improve productivity. However, we believe that this kindof additional value creation is not recognized as intrinsic

Dividend Policy
Eisai returns profits to all shareholders in a stable andsustainable manner, comprehensively taking into accountconsolidated financial results, dividend on equity (DOE, theratio of equity attributable to owners of the parent company),
free cash flow, signal effects, and other factors. We strive foran “optimal dividend policy based on an optimal capital
structure” that depends on long-term balance sheet
management, rather than a dividend payout ratio based on
short-term performance.

Realization of Social Goodin Three Areas

82%
87%

adopted a Global Cash Management System (GCMS) for
realizing effective cash utilization among group companies.

＊1 Internal estimate＊2 Future targets were estimated internal by applying the method and basic data of Ryohei Yanagi and David Freiberg, “Monthly Capital Market” September, 2022 issue, “ESG
Accounting for offering neglected tropical disease treatment with price zero”＊3 Future targets were estimated internal by applying the method and basic data of Ryohei Yanagi, “Monthly Capital Market” September, 2021 issue, “Disclosure in the integrated
report of employee impact accounting”

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Management Strategies

Quantification of the Value of Non-financial Capitalshareholders’ equity as “financial capital” and the market value

In a regular profit and loss statement (P/L), personnel

creation and strive to improve the value of non-financial capitalsuch as intellectual capital and human capital. In calculating
intrinsic corporate value based on our corporate concept, weneed to show the value of non-financial capital in quantitative
terms. We believe that the value of non-financial capital can be
determined by the market using PBR as market value added thatexceeds financial capital, and that PBR is an important indicator.
We believe that PBR is the sum of the book value ofadded that exceeds it, and the portion that exceeds a PBR of 1xis the value of the five non-financial types of capital, which are“intellectual capital”, “human capital”, “manufactured capital”,“social and relationship capital” and “natural capital” (IIRC＊1-PBR

expenses and R&D costs are deducted from sales
revenue as expenses, and profits are compressed.
However, at Eisai, from the results that intellectual
capital and human capital are correlated with PBR andthe delayed penetration effect, personnel expenses andR&D costs will achieve social good after the fact ordelayed value in the future, and they can be considered
not as expenses but as “investments in intangible
assets” that generate value. We define the figures
added back to personnel expenses and R&D costs as
ESG EBIT, and we believe that increasing ESG EBIT,
which is intrinsic profit, will lead to the creation of
medium- to long-term corporate value. Looking at theESG value-based income statement, operating profit in
the past five years has fluctuated greatly from the 50
billion yen level to 120 billion yen, but with ESG EBIT, it
is largely unchanged, remaining at around 300 billion
yen. Currently, we are in the phase of proactively
investing our resources in drugs in the dementia area,such as lecanemab and, based on the belief that
advancing R&D with a long-term perspective andinvesting in our human resources leads to the creationof corporate value, promoting sustainable management.

model). We believe that increases in the value of non-financial
capital are converted to future financial value, suggesting that
improving the value of non-financial capital is important for thecreation of medium- to long-term corporate value.

＊2

The six types of capital that comprise Eisai’s corporate value
Trends in Eisai’s PBR 1 (from the end of fiscal 2011 to end of fiscal 2022)(Times)6

hhc ⇒ ESG 2 ➡ SDGs 3
Contribution to patients’ value
Contribution to employee value

Neurology➡

Continuous increaseof shareholder value

Oncology

Conversion to
future equity spread＊4

5

4

3

2

Intellectual Capital
Non-financial capital (ESG)

Potential Value

Human Capital
Manufactured CapitalSocial and
Relationship Capital
Natural CapitalMarket Value Added (MVA) (self-created goodwill)1

End of fiscal 2022

＊1 Price Book-value Ratio ＊2 Environment, Social, and Governance ＊3 Sustainable Development Goals＊4 ROE-Cost of Equity (CoE) (Eisai conservatively assumes cost of equity of 8%)

New findings related to correlation analysis of KPI of Non-financial Capital and PBRAt Eisai, in order to quantify the value of non-financial capital,
we used multiple regression analysis to analyze the correlation
between the KPI of non-financial capital and PBR, which we
disclosed in the 2020 Value Creation Report. Here, we have
performed the correlation analysis again using the latest data
up to fiscal 2022, from which we obtained new findings,
including the results shown in the figure below. Since ourinitiatives to create new drugs focusing on the areas ofdementia and oncology and our initiatives to maximize thevalue of human resources suggested once more that they leadto increased medium- to long-term corporate value throughthe delayed penetration effect, we decided to position these
initiatives as important materiality topics (see pages 17–18).

Correlation in fiscal 2022 results between newly-confirmed KPI of non-financial capital and PBR＊3
Realizing social good in the dementia area

Realizing social good in the oncology area

Creating new drugs and maximizing value

Creating new drugs and maximizing value

Increasing the number of projects in Phase III studies by 10% raises PBR by 2.7% after 6 years

Maximizing the value of human resources
Improving employee engagement
Improving the 3-year retention rate of new graduates hiredby the company by 1% raises PBR by 4.6% after 7 years

65

Eisai Value Creation Report 2023

Data Section

ESG Value-based Income statement(Unit: Billions of yen)

Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022

Revenue

642.8

695.6

645.9

756.2

744.4

Cost of sales

184.5

175.7

161.3

174.8

177.8

Portion for personnel expenses
associated with manufacturing activities
Human capital

13.6

14.2

14.2

16.2

16.6

Conventional gross profit

458.3

519.9

484.6

581.4

566.6

ESG gross profit

471.9

534.1

498.8

597.6

583.2

R&D costs

144.8

140.1

150.3

171.7

173.0

R&D costs
Intellectual capital

144.8

140.1

150.3

171.7

173.0

(Portion for personnel expenses)

45.6

46.4

47.4

54.1

64.7

228.2

256.3

281.4

366.4

358.3

87.1

88.0

90.5

101.3

100.2

0.9

2.0

(1.2)

10.5

4.8

Conventional operating profit

86.2

125.5

51.8

53.7

40.0

ESG EBIT

331.6

367.8

306.7

342.9

329.9

Selling and administrative
expensesPortion for personnel expenses
associated with operating activities
Human capital
Other income

ESG gross profit = Revenue – Cost of sales + Personnel expenses associated with manufacturing
activities (human capital)
ESG EBIT = Operating profit + R&D costs (intellectual capital) + Personnel expenses associatedwith manufacturing activities and operating activities (human capital)

Financial Capital

Net assets (book value on accounting basis)0
End of fiscal 2011Materiality to Effectively Realize
Social Good“ESG EBIT” that Reflects Non-Financial Capital in Accounting

At Eisai, we capture medium- to long-term and sustainable value

Enhancement of non-financial capital

Realization of Social Goodin Three Areas

Employee Impact Accounting
At Eisai, we focus on the value of human resources
and, when calculating “Eisai’s employee impact
accounting” in 2020, we visualized the impact thathuman resources have on society. By adding andsubtracting based on wage quality, employee
opportunity, diversity, and contributions to local
communities, 26.9 billion yen of Eisai’s nonconsolidated total payroll of 35.8 billion yen for fiscal
2019 was recognized as “creating positive social
impact”, resulting in a human resources investment
efficiency of 75%＊4, which is high compared withblue-chip companies in the U.S. On the other hand,diversity issues have become apparent. As a result ofefforts to increase diversity, our human resources
investment efficiency improved to 80% in fiscal 2022.
Aiming for an even higher level of human resources
investment efficiency, we have set targets for fiscal 2025
and 2030, and are promoting a variety of initiatives(page 53).

Eisai created 26.9 billion yen positive value(Human resources investment efficiency of 75%)
Eisai Employee Impact Accounting (Non-consolidated)
Fiscal Year

2019

Number of Employees

3,207

Revenue＊1

246.9

＊1

EBITDA(Unit: Billions of yen)

61.1

Total Salaries Paid

35.8

Employee Impact

ImpactEBITDA (%)

Revenue (%)

Wages (%)

Wage Quality＊2

34.3

55.99%

13.87%

95.83%

Employee Opportunity＊3(0.7)-1.17%-0.29%-2.00%

Subtotal

33.5

54.82%

13.59%

93.83%

Diversity＊4(7.8)-12.70%-3.15%-21.73%Contributions to Local Communities＊5

1.1

1.81%

0.45%

3.09%

Subtotal(6.7)-10.89%-2.70%-18.64%

Total Impact

26.9

43.93%

10.89%

75.19%

Labor Community Impact＊1 Revenue and EBITDA have been allocated from segment information＊2 Marginal utility and wage gender gap adjusted＊3 Gender gap in promotion/salary increase adjusted＊4 Gender gap in employment against average demography adjusted＊5 Local unemployment rate ×number of employees × (annual salary – minimum safety net)

＊1 International Integrated Reporting Council＊2 Partial revision of Ryohei Yanagi, “CFO Policy: Value Creation through Financial and Non-Financial Strategy” 3rd Edition, CHUOKEIZAI-SHA (March 2023)＊3 Analyzed by Digital ESG of ABeam Consulting Ltd., relying on the theory (Yanagi Model) in Ryohei Yanagi, “CFO Policy: Value Creation through Financial and Non-Financial
Strategy” 3rd edition, CHUOKEIZAI-SHA (March 2023)＊4 Ryohei Yanagi, “Monthly Capital Market” September, 2021 issue, “Disclosure in the integrated report of employee impact accounting”

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66

Management Strategies

Enhancement of Corporate Governance(Enhancement of Management Oversight Function)
Eisai always aims to exercise the best corporate governance and strives continually to enhance it aswell. In order to enhance corporate governance, Eisai also fully utilizes the functions of outside
directors, including management oversight.

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Diversity of Directors
Eisai selects directors who have various different backgrounds
so that the Board of Directors can meet the expectations ofstakeholders and exercise the function of management
oversight.
For outside directors in particular, we aim to ensure diversity

over the medium to long term. This includes diversity in termsof tasks from those experienced in corporate management andglobal business to experts in law and financial accounting, suchas nationality, gender, and age.

System of Operational Divisions for Flexible, Optimal Decision Making and Business Execution

Features of Eisai’s Corporate GovernanceCorporate Governance System (As of July 1, 2023)
General Meeting of Shareholders
Board of Directors (11 members: 7 outside, 4 inside) Chair: Fumihiko Ike (outside director)
Management oversightCompensation
Committee(3 members: all outside)
Chair: Richard Thornley

hhc GovernanceCommittee(7 members: all outside)
Chair: Fumihiko Ike

Board of Directors Secretariat

Representative Corporate Officer and CEO

Corporate officer responsiblefor internal control
Corporate Internal Audit Department

Corporate officers
Internal Audit

Accounting
AuditorOperational
division

Appropriate reportingand proposals

ReportMonitoring/verification

Management
Audit Department

Audit by Committee

Audit Committee(5 members: 3 outside, 2 inside)
Chair: Hideyo Uchiyama

Nomination
Committee(3 members: all outside)
Chair: Toru Moriyama

Individual divisions/
Subsidiaries inside and outside Japan
Development and operation of the internal control system

Clear Separation of the Functions between Oversight of Management and the Execution of Business
Eisai fully leverages its system of being a company with anomination committee, etc., with the Board of Directors
entrusting a large portion of the decision-making authority overbusiness execution to corporate officers to the extent permitted
by laws and regulations in order to devote its attention to theoversight of management.
This enables prompt, flexible decision making and businessexecution by corporate officers even in environments
undergoing turbulent changes. Additionally, in order to achievea clear separation between the oversight of management andthe execution of business, Eisai has established that the chairof the Company’s Board of Directors be an outside director
and that the Representative Corporate Officer and CEO shallbe the only individual to concurrently serve as a corporate
officer and a director.
Clearly separating the oversight of management and theexecution of business enhances corporate vitality.
The Board of Directors exercises the function of oversightfrom the perspective of stakeholders to ensure fairness andtransparency in management.

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Eisai Value Creation Report 2023

Selection and Assignment of Corporate Officers
The Board of Directors takes a global perspective in selecting
the corporate officers who will implement our Corporate
Concept and improve our corporate value, and assigns themin ways that allow them to effectively, efficiently harness theircapabilities.
People who are well-versed in the operations in each fieldof administration, including those with advanced expertise in
R&D, science, and the production, quality, safety, and otheraspects of pharmaceuticals, as well as those with extensive
knowledge in the medical systems and health care markets inparticular regions of the world, are selected as corporate
officers.

Meanwhile, the Board of Directors passes resolutions onrules related to “systems for ensuring proper business
operations”, and establishes the specific rules for internal
controls that should be put in place and operated by corporate
officers, in accordance with the stipulations of the Companies
Act. In addition to the matters stipulated in those rules,
corporate officers ensure independence by establishing andoperating internal control in their assigned duties, thereby
increasing the speed and flexibility of business execution.
Under this structure, the Board of Directors also checks thestatus of execution of duties by corporate officers and inspects
the appropriateness of the status of internal controls, such as
the business execution and decision-making processes, fromthe perspective of shareholders and society.
Directors and corporate officers communicate with eachother and build trust in executing their respective duties andfulfilling their responsibilities, working together to increase
corporate value and contribute to the creation of social value.
Mechanisms such as these are the characteristics of theEisai’s corporate governance.

The Executive Board, Advisory Boards, Etc.
Eisai has established mechanisms to support the decisionmaking of the CEO, including the Executive Board as thehighest decision-making body of business execution, the Eisai
Scientific Advisory Board (comprised of professors andresearchers from world-renowned research institutions) for
consideration of the direction of medium- to long-term R&D
and general portfolio strategies and tactics, and theSustainability Advisory Board (comprised of outside specialists
from Japan and abroad who are well-versed in international
policies) in order to improve our non-financial capital initiatives
focused mainly on ESG and the Sustainable Development

Goals (SDGs). Based on authority delegated from the Board of
Directors, other meeting bodies include the Compliance
Committee, the Risk Management Committee, the CompanyWide Environment and Safety Committee, and the Human
Rights Awareness Committee.
Building and Operating a Global Internal Control System
The Board of Directors has established the “Rules for Preparing
Necessary Systems for Ensuring the Suitability in the
Performance of Duties by Corporate Officers”. The corporate
officers implement, maintain, and operate internal control
systems in their assigned duties in accordance with the Rules.
The Company also assigns global corporate officers withcorporate officers who are in charge of directly building andoperating internal control systems at overseas subsidiaries.
Instilling Management with Accountability andStakeholder Consciousness
Once every 3 months, all corporate officers attend a Board of
Directors meeting and report to the Board of Directors on
decisions made in operational divisions, as well as the statusof their business execution. Corporate officers having
accountability and reporting to the Board of Directors improve
the rationality and transparency of decision making, policies,
and initiatives of operational divisions, while instillingstakeholder consciousness in management.

Management Oversight by the Board of Directors
The Board of Directors delegates a large portion of thedecision-making authority over business execution to corporate
officers, and corporate officers are responsible for reporting to
the Board of Directors in a timely, appropriate fashion.
The Board of Directors has the authority to select anddismiss corporate officers, and confides in corporate officers
by verifying the appropriateness and efficiency of businessexecution processes based on their reports while also
evaluating the performance results of the business execution,
thus fulfilling the role of management oversight by ensuring theappropriateness and efficiency of management.

The Board of Directors also delegates importantmanagement oversight functions of the Board of Directors to
the Nomination Committee, Audit Committee andCompensation Committee, and oversees the execution ofduties of these committees based on their respective reports.
The fairness and transparency of the Board of Directors arealso ensured through oversight of each individual director toverify whether they are making fair judgments, exercising theirauthority in a way that satisfies the confidence placed in themby all shareholders, and executing their business functions
appropriately.

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Management Strategies

A Sustained, Autonomous Mechanism for Enhancement of Corporate Governance Centeredon Outside Directors

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

This subcommittee has shared information and held discussions on the following topics, led by the committee members delegated to operate them.
1) Policy and Issues Related to TCFD(Task Force on Climate-related Financial Disclosures) Disclosure and the Orientation Toward Enhanced Disclosure2) Eco-friendly business activities (evaluation results of water security reports, systems for promoting environmental management, the status of CO2

The presence of independent outside directors, who accountfor the majority of the Board of Directors, supports theeffectiveness of the Eisai’s corporate governance structure. As
indicated in the diagram below, Eisai has established and isoperating a mechanism to enhance sustained, autonomous
corporate governance centered on outside directors, including(1) a system of electing neutral and independent outside
directors by a Nomination Committee, (2) operating the Boardof Directors, etc., through the leadership of a chair who is an
outside director, (3) an hhc Governance Committee for broad
discussion of corporate governance, including dialogues withstakeholders and the consideration of succession plans, etc.,
and (4) corporate governance evaluations through Plan-DoCheck-Act (PDCA) cycles of the Board of Directors and eachcommittee. We will continue to work to enhance the content ofeach of those efforts.

A Sustained, Autonomous Mechanism for Enhancement of Corporate Governance Centered on Outside Directors❶ The Nomination Committee consists of outside directors.
❷ Information on candidates is also collected from members of the Nomination Committee
and all other directors and former outside directors of the Company.
❸ Candidates for outside directors are narrowed down after screening for independence andneutrality and the presence of any competitive activities, etc.
❹ After the order of priority of requests for appointment has been set, the Chair of theNomination Committee (outside director) submits assignment requests to the candidates.

System for Selecting Outside Directors

Corporate Governance Evaluation❶ Review of Corporate Governance Principles and internal control-related rules❷ The hhc Governance Committee compiles the results of evaluations of each director andmakes proposals to the Board of Directors, including issues.
❸ Resolutions are passed by the Board of Directors and disclosed in business reports, etc.
❹ The PDCA cycle is driven by confirming the implementation status of issues at Board
meetings, etc.
❺ Reviews of Board of Directors evaluations are conducted by an outside organization once
every 3 years.

❶ The Chair of the Board of Directors is appointed from among outside directors.
❷ The Chair of the Board of Directors proposes the Board of Directors agenda items for theyear, annual themes, etc.
❸ A week before meetings of the Board of Directors, there is a meeting with the secretariat
and Head Office staff regarding the content of agenda items, materials, etc.
❹ The Chair of the Board of Directors draws out knowledge from directors with diverse
backgrounds, enhances the quality of the discussions among members of the Board of
Directors, and manages Board meetings effectively and efficiently.

Chair of the Board of Directors (Outside Director)

hhc Governance Committee❶ Matters are discussed freely, with only outside directors in attendance.
❷ Proactive dialogue with stakeholders❸ Information regarding the succession plan proposed by the CEO is shared and discussed.
❹ Corporate governance evaluations (including the evaluations made by each director) aresummarized and proposed to the Board of Directors.
❺ As necessary, the Board of Directors and corporate officers are asked to consider issues,
share information, etc.

Consideration and Implementation of Efficient Operation of the hhc Governance Committee
As the role of the hhc Governance Committee continues toexpand in its efforts to improve the Eisai’s corporate
governance, the number of themes it addresses, the frequency
of its meetings, and the time required by its activities haveincreased over the years, while the scope of activities of theoutside directors has also grown. We therefore consideredefficient operation of the Committee in order to ensuresufficient time for more important deliberation.

Securing Sufficient Time for the Deliberation of Important Matters
As the business environment changes, there will be more
opportunities for outside directors to communicate closely anddeliberate important matters with all members in attendance.
The challenge will be how to secure sufficient time fordeliberation. In order to ensure the efficient operation of the
hhc Governance Committee, our top priority was to ensuresufficient time for deliberation.

Establishment of a Subcommittee to Inspect the Status of Sustainability Initiatives
In addition to being a key management issue, sustainability
initiatives present a risk that could affect corporate value.
Therefore, in addition to regular reports related to ESG, theBoard of Directors receives reports from the assigned
corporate officers regarding individual topics and monitors the69

Eisai Value Creation Report 2023

efforts. The hhc Governance Committee has established asubcommittee to inspect the status of sustainability initiatives
in order to enhance discussions on sustainability at meetingsof the Board of Directors.

reductions [Scopes 1, 2, and 3], the status of the introduction and operation of internal carbon pricing, etc.)
3) Reports related to general sustainability disclosures (CSRD(Corporate Sustainability Reporting Directive), DJSI(The Dow Jones Sustainability Indices),
ATM(Access to Medicine) Index, human rights and sustainable procurement, etc.)
4) Reports on Women’s Participation and Advancement
The status of the subcommittee discussions was promptly reported to the hhc Governance Committee.

Information-Sharing Measures to Deepen Discussions at Meetings of the Board of Directors
In preparing the agenda for meetings of the Board of Directors andthe hhc Governance Committee in fiscal 2022, we divided andorganized the topics into 3 categories, namely, (1) discussion withthe participation of all members, (2) action by subcommittees, and(3) information necessary to deepen discussions. Regarding (3), we
also considered how to share the information.

As a result, efforts were made to improve the convenience of
information sharing through a new measure that makes it
possible to record or film the exchanges of opinions on the
Value Creation Report, subcommittee meetings, and training
sessions for new outside directors, and make both the sessions
and documents available for later viewing on-demand.

Expanded Roles

More Topics with Fuller Content

A setting for mutual understanding of outside directors＋❶ Consideration of the succession plan
❷ Evaluation of the effectiveness of the Board of
Directors❸ Deepening mutual understanding with corporate
officers❹ Information collection that contributes tomanagement oversight- Information sharing, etc., on each corporate
officer’s business execution❺ Mutual sharing of information and issues among
committees❻ Reflecting on dialogues with stakeholders❶ Outside directors listening directly to investors’
expectations❷ Collection of the latest information related togovernance❸ Understanding trends in the exercise of voting
rights and shareholder proposals❹ Discussion on how the Board of Directors should
conduct its management oversight❺ Making the Board of Directors paperless❻ Items related to the execution of business- Business for The People, Value Creation Report- ESG-related information sharing

Greater Scope of Activity for
Outside Directors❶ Socialization with patients❷ Dialogues with institutional investors andshareholders❸ Exchanging opinions with employees and unions❹ Free discussion❺ Office visits (laboratories, manufacturing plants,
sales offices)❻ Participation in various training sessions

Efficient operation is required to ensure sufficient time for important deliberations

All committee members participate
and engage in the discussions
Enhance important matters of deliberation

Regarding highly specialized topics
Establish subcommittees

Regarding information necessary
to deepen debate
Devise ways to share information

Compensation Paid to Directors and Corporate Officers
Part of the formula for calculation of bonuses in the fiscal 2022
corporate officer compensation system was changed and nonfinancial targets (KPI) were added to the stock-based
compensation system. In addition, in fiscal 2022, theCompensation Committee made fundamental revisions to thedirector and corporate officer compensation system, anddecided to implement it beginning in fiscal 2023.
New Process of Determining the Compensation System
Base compensation is fixed, but the company pays
compensation and other benefits to directors in the form of
cash for 90% of base compensation and stock (granted upon

resignation) for 10% of base compensation. Aim to set thelevel of base compensation of outside directors and insidedirectors at the upper middle range of the industry. The chair of
the Board of Directors and each Committee chair receive
additional compensation for their service as chair.
Base compensation (fixed amount)Directorcompensation ＝

Cash (90%)＋ Shares (10%)

New Compensation System for Corporate Officers
Compose the compensation, etc., of corporate officers withbase compensation (fixed amount), performance-based

Eisai Value Creation Report 2023

70

the degree of attainment of individual performance targets

also possible. Contingency plans for such unexpected
situations are also confirmed when considering the(Bonus B). The ratio of the base amount for calculation of

sudden selection of a new CEO by the Board of Directors are

aforementioned succession plan.

targets (Bonus A) and bonuses that are calculated based on

stock-based compensation. Set the contents of thecompensation, etc., of corporate officers by global job grade＊1
and at a level intended to be in the upper middle range of theindustry, in order to make the contents of compensation, etc.,
competitive, with the importance of corporate officers’ duties
and the size of their responsibilities reflected.

Bonus A and Bonus B shall be 5:5.

Base compensation (fixed amount)

Bonus AThe degree of attainment of Company-wide
performance targets for Bonus A is
determined based on an evaluation of risk,
return, and impact, and the bonus is paid ina range of 0% to 250%.

Stock-based＋ compensation(50% to 67% of total compensation) ＊＊The ratio of the base compensation and performance-based compensation of
corporate officers from overseas subsidiaries is set in accordance with the market
data for each country, so actual amounts may differ from those given in the figure.

Performance-based compensation is set so that the
proportion of total compensation increases in proportion to theheight of the job grade. Aim for performance-based
compensation that constitutes at least 50% of totalcompensation, using a mechanism that sufficiently reflects
company-wide performance as management teamcompensation. In the case of performance-based
compensation, we will adopt a system in which the results of theperformance of duties by corporate officers are evaluated using
new indicators, in accordance with the concept of evaluating
those results from the perspectives of risk, return, and impact.
Bonuses consist of bonuses that are determined based on
the degree of attainment of Company-wide performance

Bonus B

Bonus determined according to theBonuses ＝ degree of attainment of Company-wide ＋
performance targets(50%)

Performance-based compensation (variable amount)

Bonuses

Bonus determined according to thedegree of attainment of individual
performance targets (50%)
The degree of attainment of individual
performance targets for Bonus B is determinedbased on an evaluation of the individual
performance targets, including targets related
to achievement of the corporate image stipulated
in the Articles of Incorporation, as represented by
the achievement of social good, and the bonus is
paid in the range of 0% to 150%.

Mechanism for Utilizing Outside Organizations to Improve and Ensure Suitability of the Board of Directors Evaluation
Eisai has implemented a mechanism in which an outsideorganization examines the evaluation process, evaluates it,
proposes improvements, and inspects the evaluation results,

Board of Directors

We will implement a stock-based compensation system inwhich stock-based compensation consists of a portion that is
linked to medium- to long-term performance and paid during
the individual’s term of office and a portion that is paid at thetime of the individual’s resignation. The ratio of the portion of
the base number of shares to be delivered that are granted
during the term of office and the portion granted at the time ofresignation shall be 7:3.
Portion granted during the term of office

Stock-based
Base number of shares to be delivered x 70%＝ x Degree of attainment of performance targets ＋
compensation

Proposals for systemrevisions, etc.

Implementation

Evaluation by each director

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Eisai Value Creation Report 2023

Discussion on the Succession Plan
1. C
 riteria for evaluating candidates are expected to change inaccordance with the business environment and otherfactors. For this reason, criteria will be set appropriately
when the CEO proposes candidates.
2. T he CEO evaluates candidates on the criteria that havebeen set, and presents evaluation results in the succession
plan.
3. D
 irectors provide advice on the succession plan. The CEO
considers the advice provided by directors, and reflects it in
the succession plan as appropriate.

②

Consideration of revising theBoard of Directors evaluation system

Analysis, etc., of past corporate
governance evaluations

Report (advice, etc.)

Calculation

Share results of calculation

Review of Corporate Governance Principles
and regulations related to internal control
Deliberation/
consideration④

Procedures Regarding CEO Selection
Even after becoming a company with a nomination committee,etc., system in 2004, discussions had been repeated under aconsistently optimal corporate governance system regarding
the CEO succession process. In fiscal 2016, with consideration
given to developments up to that point, discussions were heldin the Outside Directors Meeting (now the hhc GovernanceCommittee) on how information should be shared by the Boardof Directors in relation to a succession plan formulated by the
CEO and how to prepare for unexpected situations. These

Outside organization

Board of Directors evaluation

The number of shares in the portion granted during theterm of office shall be determined based on ESG EBIT
(An important indicator for measuring corporate value,
which incorporates ESG value (non-financial capital) ),relative PBR, and non-financial Company-wide performancetargets, and will be paid in the range of 0% to 150%.

Sharing of Information about the Succession Plan
1. Information about the succession plan proposal by the CEO
is shared in the hhc Governance Committee twice each
year.
2. T
 he CEO and inside directors also participate in the hhc
Governance Committee, and information on the succession
plan is shared among all directors.

hhc Governance Committee

Decision to revise the Board of
Directors evaluation system

Base number of shares
to be delivered x 30%

procedures and other considerations were set out as rules.
The outline of the procedures is as follows.

etc., once every 3 years, with the aim of ensuring the suitabilityof the Board of Directors evaluation and improving theevaluation.

①

Portion granted at the time of resignation

Information Sharing and Discussion Regarding the Succession Plan
View Regarding Selection of the Chief Executive Officer(CEO)
Eisai considers the selection of the CEO one of the mostimportant decisions to be made by the Board of Directors. The
CEO’s duty is to exhibit strong leadership while also nurturing
the next CEO. The Company believes that having outside
directors participate in this process with such recognition andhaving them offer advice, etc., increases the objectivity of the
CEO’s proposal of successor candidates. It rationally ensures
the fairness of the CEO selection process of the Board of
Directors.

Data Section

Preparations for Unexpected Situations
Situations, such as unforeseen accidents, that necessitate thecompensation (variable amount) in the form of bonuses, andCompensation＋
Base compensation
paid to corporate ＝
officers(33% to 50% of total compensation) ＊Materiality to Effectively Realize
Social Good

Realization of Social Goodin Three Areas

Management Strategies

Compilation of corporate
governance evaluations
Determination of corporate
governance evaluation

Evaluation results,
proposal of issues, etc.

Sit in on the
hhc GovernanceCommittee meeting③

Inspection/analysis of the evaluation
process and evaluation results

Analysis of theevaluation process
and evaluation results

Evaluation report (Results of verification related to the suitability of the evaluation process and evaluation results)① After analyzing the Eisai’s past evaluation methods, evaluation decision process, evaluations of each director, and final evaluation, etc., the outsideorganization points out issues and makes recommendations regarding the systems and their operation.
② Based on the recommendations and what was pointed out by the outside organization, the hhc Governance Committee and Board of Directors will
improve the systems and their operations.
③ The outside organization inspects the evaluation process, evaluation results, and other aspects of the Board of Directors evaluation compiled by the
hhc Governance Committee, and submits a report to the Board of Directors.
④ The Board of Directors decides the corporate governance evaluation for the applicable fiscal year based on the evaluation compiled by the hhc
Governance Committee and the report by the outside organization.
※ The next review by an outside organization is scheduled for fiscal 2023.

Fiscal 2022 Corporate Governance Evaluation Results
In regard to the Corporate Governance Principles and Internal Control Regulations, no evidence was found of any operation, etc., that deviates from therules. It was confirmed that the directors and corporate officers, etc., are executing their duties appropriately to improve corporate governance.
In regard to the Board of Directors evaluation, the state of response in fiscal 2022 to the issues identified in the fiscal 2021 Board of Directors evaluation
as issues for fiscal 2022 was checked and evaluated, and the issues, etc., for the next fiscal year were recognized. More information on the evaluation of
the Board of Directors is available in the Online Disclosures (https://www.eisai.com/ir/stock/meeting/pdf/einv111_all.pdf).

＊1 An indicator of the size of the required duties and the standard for determining compensation, etc.
※ For the Basic Approach to Corporate Governance and Activities of the Board of Directors and Committees such as an hhc Governance Committee, the Total Amount ofCompensation Paid to Directors and Corporate Officers and Total Amount of Consolidated Compensation for Each Officer (¥100 million or more), please refer to the 111st
Ordinary General Meeting of Shareholders.
https://www.eisai.com/ir/stock/meeting/pdf/einv111_all.pdf

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Management Strategies

Implementation of Dialogue with Stakeholders by Outside Directors— Large meeting for the exchange of opinions between outside directors and institutional investors —Realization of Social Goodin Three Areasof Directors and the hhc Governance Committee recognizethat the succession plan is extremely important, and the hhc
Governance Committee discusses and considers CEO
succession. Specifically, we are discussing how candidates
can be evaluated, and what the executive structure should beat the stage when a new CEO is selected. Eisai positions theselection of top management as one of the most important
decision-making matters of the Board of Directors, and the
involvement of outside directors in the process of developing
successors ensures the objectivity and fairness of successor
selection.

Q

As part of efforts to strengthen and enhance corporate
governance, outside directors exchange in-depth opinions froma variety of perspectives with stakeholders, including patients,
shareholders/institutional investors, and employees. They
discuss how to utilize the points and knowledge gained throughdialogue in the supervisory function of the Board of Directors.
In December 2022, the meeting to exchange opinions

Q

It has been more than 30 years since CEO Mr. Naito took
office as president. How does the board of directors think
about succession? I would like to hear your thoughts onwhether the current business management would behanded over to the next generation of management or not.
Director Katoh CEO Naito has invested in research anddevelopment for the creation of new products from a long-term
perspective, and at the same time, has strongly promoted
globalization, greatly increased Eisai’s growth, and increased
its corporate value. The term of office of executive officers in acompany with nominating committee, etc. system is one year,
and the representative executive officer and CEO is also
selected by the Board of Directors every year. Under suchcircumstances, the current CEO has been able to serve as top

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Eisai Value Creation Report 2023

Director Thornley I have worked in Japan for 26 years. I
have worked in the aviation defense industry, which is similar
to the pharmaceutical industry. In other words, it is an industry
that possesses advanced technology, and the common
features are that government regulations are extremely strict
and barriers to entry are large. I have been in management for
40 years. For example, I have experience in growing acompany while maintaining compliance in a profitable manner,
demonstrating synergy with partners in all aspects, and I havealso been involved in hiring and determining employeecompensation. I think this helps my position on nominating
committees, compensation committees, and others.

between outside directors and institutional investors was held.
This is the fifth meeting since Eisai initiated it in 2018, ahead ofother companies. All seven outside directors actively exchanged
opinions with 58 institutional investors and analysts on topics,
such as succession plans, the appointment of directors, andothers. Major topics which were discussed at the meeting are
outlined below.

management for a long period of time. I think it’s the result of
making the best decision.

Yasuhiko Katoh
Director

Data Section

But he cannot serve as a CEO forever. Therefore, the Board

I would like to ask Director Thornley about the backgroundof the appointment as an outside director.

The meeting took place in December 2022
State the position at the time

Materiality to Effectively Realize
Social Good

Richard Thornley
Director

Director Kaihori The Nominating Committee selects
director candidates with due consideration to the fact that theBoard of Directors is made up of directors with diverse
backgrounds. The year of 2021’s revision of the Tokyo Stock
Exchange Corporate Governance Code also called for diversityof directors in terms of foreigners, gender, work history andage. Mr. Richard Thornley is a business executive whocurrently runs his own and has experience in corporate
management in the aviation defense industry, which required
strict safety. Based on his experience in corporate
management at a global company and his strong business
relationship with national public institutions, he was appointed

Shuzo Kaihori
Director

as a candidate for outside director of foreign nationality withthe expectation that he would supervise management.

Q

On the Value Creation Report 2022, it states, “We aim toincorporate non-financial KPIs such as ESG into
performance indicators (KPIs) for determining
performance-linked remuneration during fiscal 2022”.
What is the current progress?
Director Ike We have already resolved to incorporate
non-financial KPIs into the performance indicators that
determine stock compensation, which is 10% of executive
officer compensation. Specifically, we held discussions basedon the former CFO Yanagi’s model, and the idea that market
value is derived from non-financial capital. As a result, weestablished four non-financial KPIs to be used in calculatingstock compensation. In other words, the ratio of basic
remuneration, bonuses and stock remuneration is set at 6:3:1
for executive officer remuneration, and 10% stockcompensation is determined by non-financial KPIs. The first
non-financial KPI is relative PBR, in other words, how was
Eisai’s PBR compared to domestic PBR movements, and thesecond is to include intellectual capital, human resources, andsocial capital as KPIs. That is why we have set R&D indicators.
Since there are events for each pipeline, we decided to create
a KPI with the achievement point as zero and rank themaccording to the degree of achievement. The third is a KPI foraccess to medicines, and we will calculate the degree of
realization from the perspective of how to deliver medicines to

Fumihiko Ike
Director

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74

Management Strategies

Realization of Social Goodin Three Areaspatients in all regions, not just DEC tablets. The fourth and final

As a new initiative from fiscal 2021, we set up

lymphatic filariasis. However, on the other hand, when I look at

is employee engagement. Fixed-point observations are madeopportunities to reflect on the results of dialogue withexternal evaluation organizations, I am concerned that they are

every year, and we check various changes over time instakeholders, such as shareholders, patients, and employees,

not being evaluated correctly. I think this is due to that theemployee satisfaction, evaluate the degree of achievement ofthese goals, and determine stock compensation. The
Compensation Committee considers these four non-financial
indicators to be evaluated for stock compensation. We will
evaluate the degree of achievement of performance targets in
the range of 0 to 150% and make decisions.

including the union. We are discussing how we should utilize
it for future management. Going forward, we will continue torespond to the expectations of stakeholders through a cycleof dialogue with stakeholders.

setting of quantitative KPIs with a medium- to long-term time
axis is regarded to be inadequate. I would like to ask thecompany to disclose items such as achievements, goals andprogress using KPIs.
Our company serves as the investor’s chair of 30% ClubJapan, so from that perspective, especially in terms of board
diversity, for Eisai, which aspires to achieve advanced
governance, I would like you to put in the effort.

Q

Eisai’s current performance of fiscal 2022 is highly
dependent on lump-sum income, but doesn’t the Board of
Directors see this as a major management risk?
Director Uchiyama As you pointed out, over the past few
years, it is true that the operating profit depends on lump-sum
income such as receipts for achieving milestones related toLenvima®, as well as receipts related to signing collaborationagreements and product transfers, depending on the year. But
in terms of the best timing and method for maximizing thevalue of the assets that we have cultivated so far; it isextremely advanced. We recognize that this is the result of partof our business strategy based on sound management
decisions. The Board of Directors carefully monitors thepharmaceutical business, which is our core business,
excluding lump-sum income, from the perspective ofmanagement risk.

Q

Director Kaihori Institutional investors have pointed
out that there are no outside directors who are experts inmedicine and pharmacy. In the future, I would like to hear
your thoughts on whether experts in the field should
be appointed to companies with nominating
committees, etc.

Ryota Miura
Director

Institutional Investor C I think one of the points is how tothink about the skills required of outside directors. Generally
speaking, from the perspective of diversity, the characteristicsof the pharmaceutical business, and the securing of profits forshareholders, we would like to add people with management
experience who have a background in science to the diversity.

Questions from Directors toInstitutional Investors

Materiality to Effectively Realize
Social Good

Data Section

Shuzo Kaihori
Director

I think there are times when options come up as candidates.
On the other hand, I think that it is very difficult to find people
with such a background in Japan compared to Europe and theUnited States. Under such circumstances, including Eisai,
some companies set up an advisory board made up of
scientific experts, and have taken the option of giving advice to
executive officers on how it looks from the perspective of anexpert. By carefully explaining to the market what kind ofpeople have been selected for the advisory board and what
functions they are responsible for, but it is possible to deepen
the understanding of the capital market.

Q

Director Miwa From the perspective of institutional
investors, we would like to hear your opinions on ESG
issues and matters that our Board of Directors should
focus on and supervise.

Hideyo Uchiyama
Director

Q

Eisai’s outside directors have actively engaged indialogue with institutional investors andshareholders. What kind of results do you think havebeen achieved?
Director Miura Outside directors are elected byshareholders and attend meetings of the Board of Directors as
shareholders’ representatives. In terms of easy-to-understandresults, for example, on June 30 2022, we abolished so-calledtakeover defense measures (abolition of our company’s “policy
for securing corporate value and common interests ofshareholders”). We are also discussing succession andinclusion of non-financial KPIs and so on, which are the topics
of today.

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Eisai Value Creation Report 2023

Yumiko Miwa
Director

Institutional Investor A As a personal opinion, I am
concerned about how to develop human resources withadvanced expertise through human resource investment in thenext generation. I am very interested in how to educate people.
I would like to request disclosure of information on this point.
Although data can be collected domestically, I would like toknow the global situation. I would like you to accelerate
initiatives globally.
Institutional Investor B In the area of access to
medicines, we are evaluating your efforts in the treatment of

Eisai Value Creation Report 2023

76

Message from the Chair of the Board of Directors (At the time of fiscal 2022)
In fiscal 2022, the Board of Directors spent sufficient time discussing our
key issue, the next-generation Alzheimer’s disease treatment lecanemab(U.S. brand name LEQEMBI®), with detailed reports presented by

Yasuhiko Katoh
Chair of the Board of Directors(Outside Director)

corporate officers as needed, ranging from the status of preparations for
its launch to the progress of measures to expand the market after its
launch. Pricing, which was a subject of particular attention, was actively
discussed from the perspective of social value.
In addition, the Board of Directors was presented with a report on thereview of the progress of the medium-term business plan “EWAY Future &Beyond”, and worked to oversee management from a diverse and broad
perspective, from urgent issues to the medium- to long-term businessoutlook.
Furthermore, from the free discussions at the hhc GovernanceCommittee meetings held exclusively by outside directors, the Board
requested reports from operational divisions on several themes, such as
risks that should be addressed by the Board of Directors, and waspresented with reports by the corporate officer in charge of each theme,
and was discussed.
In the future as well, the outside directors will lead the way in always
striving for the best and most current governance, while aiming to
improve corporate value and meet the expectations of stakeholders.

Materiality to Effectively Realize
Social Good

Realization of Social Goodin Three Areas

Management Strategies

Data Section

Corporate Executives (As of August 1, 2023)

Global Governance Structure to Enhance Corporate Vitality and Exercise Highly Effective OversightGeneral Meeting of Shareholders(: Foreign Nationality,: Female)

Board of Directors (Chair: outside director, 11 directors (7 outside, 4 inside))
Outside Director

Hideyo Uchiyama Yumiko Miwa
Mainbackground

Finance accounting

Fumihiko Ike

Ryota Miura

ESG & corporate governance Corporate management

Legal

Inside Director

Richard Thornley Toru Moriyama

Yuko Yasuda

Haruo Naito

Hideki Hayashi

Yoshiteru Kato

Hiroyuki Kato

Corporate management

Corporate management

CEO

Pharmaceutical business

Products & quality

R&D & quality

Nomination Committee (3 outside)

Corporate management

Audit Committee (3 outside, 2 inside)

Reporting & Management
proposals
oversight

Compensation Committee (3 outside)

hhc Governance Committee (7 outside)

Advisory boards comprised of outside experts
Risk Management Committee

Eisai Scientific Advisory Board

Company-Wide
全社環境安全委員会
Environment and Safety Committee

Sustainability Advisory Board
Haruo Naito

Compliance Committee

Human人権啓発推進委員会
Rights Awareness Committee

CEO

Executive Board (20 corporate officers)
R&D

MedicalProduction

Takashi Owa
Science Medical
SafetyMessage from the Chair of the Compensation Committee (At the time of fiscal 2022)

Quality

Lynn Kramer

Akiko Nakahama

Kazuhiko Tamura

ClinicalPortfolio Quality

Demand Chain

Business

Mitsuo Kosaka
New Supply
Chain Strategy

Japan

Americas

Terushige Iike

Tatsuyuki Yasuno

Japan BusinessPresident

EMEA

Fumihiko Ike
Chair of the Compensation Committee(Outside Director)

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Eisai Value Creation Report 2023

The Compensation Committee focuses on its role in “ensuring fairness
and transparency” and “accountability to shareholders and otherstakeholders” in determining the compensation, etc., of the Company’s
directors and corporate officers, which represents a vital supervisory
authority in corporate management.
The Compensation Committee has repeatedly discussed thecompensation system for directors and corporate officers, which has
been under continuous review, and with the cooperation of outside
specialized organizations, has identified and reviewed issues in the
Company’s officer compensation system, surveyed and reviewed
compensation levels, and considered the formulation of a new
performance-based compensation system that is unique to the Company.
As a result, at the Compensation Committee meeting held on March 29,
2023, the Committee determined the new compensation system fordirectors and corporate officers.
However, the Committee recognizes that the resolution to revise thesystem is a starting point, and that the implementation of the systemgoing forward is precisely the real work of compensation system reform.
In fiscal 2023, the Committee will continue to implement and improvethe compensation system for completion so that each and every director
and corporate officer can strive to enhance the Company’s corporate value.
The Compensation Committee will continue to ensure the fairness andtransparency of its compensation-related decisions by deliberating
thoroughly on the relevant issues and further enhancing its disclosure
activities, thereby fulfilling its accountability to Company shareholders andother stakeholders.

Gary Hendler
President

China

Asia and Latin America

Yanhui Feng

Shohei Kanazawa

President

President

Corporate

Yasushi Okada

Kenta Takahashi

Keisuke Naito

Masatomi Akana

Sayoko Sasaki

Teruyuki Masaka

Shin Ujiie

Toshitaka Asano

Mitsuru Shomon

COO

General Counsel
IA, CCOStrategy and Planning
Ecosystem
Global Alzheimer’s Disease

Healthcare Policy
CIRO

Corporate Communications

CHRO

Strategy

Corporate Planning
Business Development

CFO

Diversity of Officers (Directors, Corporate Officers)

(Number of officers)

Management

R&D

Manufacturing,
quality, safety, etc.

MarketingFemaleForeign nationality

Total

11

4

5

5

5

4

Directors

9

1

1

－

2

1

Corporate officers

2

3

4

5

3

3

※F
 or descriptions of official positions, please refer to Eisai’s Corporate Website.

https://www.eisai.com/company/profile/officer/index.html

Eisai Value Creation Report 2023

78

Realization of Social Goodin Three Areas

Management Strategies

Compliance and Risk Management/Internal Audit
In our corporate activities, Eisai considers the feelings of patients and the people in the daily living
domain, and in order to improve the benefits to them, we promote engaging in timely and appropriate
compliance-based decisions and behaviors at all times.

Promoting Compliance
Eisai defines compliance as “the observance of legal andethical standards” and positions it as the core of management
activities, implementing a compliance program that includes
delivering messages from top management, developing theCode of Conduct and other relevant rules, awareness-raising
activities, a training system, and the creation of consultation
and reporting desks.
This compliance program periodically undergoes objective
reviews by a Compliance Committee organized by external
experts.
Awareness-Raising Activities that Foster Compliance
Awareness
In order to foster awareness of compliance, Eisai has issued a“Compliance Handbook” (which includes the Eisai Network
Companies Charter of Business Conduct and the action
guidelines) in 16 languages and distributed it to all corporate
officers and employees.
In addition, we continuously hold various training programs
utilizing different formats, such as a compliance workshop for
Corporate Officers, e-learning, and workshops utilizing special
training materials in each department, in order to improve
compliance awareness and prevent incidents before theyoccur.
Use of the Compliance Counters and Business Partner
Compliance Whistle-blowing Hotlines
The Compliance Counters serve as points of contact forinternal whistle-blowing in the Eisai Network Companies(ENW). In Japan, these counters are set up at each ENW
company, including Eisai Headquarters, and are available for
employees of ENW companies to contact Headquarters
directly. The Compliance Counters also provide external
consultation services by independent external lawyers andexternal consultation services operated by an ombudsperson
who receives inquiries about workplace or job issues from aneutral position, and they establish an environment forcompliance promotion.
The Compliance Counters receive not only whistle-blowing
reports, but also all sorts of compliance-related consultations
such as interpretation of laws and rules as well as questions

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Eisai Value Creation Report 2023

about daily activities. In fiscal 2022, more than 340 inquiries
were received at the Compliance Counter at Eisai
Headquarters alone.
Overseas, along with establishing independent internal
whistle-blowing hotlines in each region, in Asia Eisai has set up
whistle-blowing hotlines that connect directly to Headquarters
and provide support based on the laws and regulations ofeach country.
Eisai has also set up compliance whistle-blowing hotlines
so that our business partners and their officers and employees
can consult on or report improper acts and legal or regulatory
violations by Eisai officials or improper acts and legal or
regulatory violations and so on at the business partners thatare related to the Company’s business. In addition, in
accordance with the Whistleblower Protection Act, the people
engaged in the support services of the hotlines are under anobligation to keep information identifying whistle-blowers
confidential.
Compliance Awareness Survey
In order to grasp the compliance and organizational culture aswell as any individual issues, we conduct a Compliance
Awareness Survey of all employees in both the Japanese andinternational groups every other year. From the results of thesurvey, we understand the individual issues of the whole
company and each department and consider initiatives tofoster awareness of compliance. In addition, we share theseissues with the managers of each division, leading to theirvoluntary actions to resolve the issues identified.
Prevention of Bribery and Corruption
In order to promote honest business activities, Eisai formulated
the “ENW Anti-Bribery and Anti-Corruption Policy” in January
2012 (revised in 2018). This policy provides common rules for
Eisai Network Companies when dealing with external parties inline with efforts to carry out business activities without bribery
or corruption across the ENW. In 2022, we have also
developed new global anti-bribery provisions in line with thepolicy and strengthened our due diligence function withrespect to our business partners.

Materiality to Effectively Realize
Social Good

Data Section

Risk Management Promotion
In accordance with the stipulations of the Companies Act,
Eisai’s Board of Directors has established the “Rules for
Preparing the Necessary Systems for Ensuring
Appropriateness in the Performance of Duties by Corporate
Officers”. These Rules stipulate that all corporate officers are to
identify risks in their assigned duties and establish, maintain,
and operate internal control. The corporate officer responsiblefor internal control establishes the globally common “ENWInternal Control Policy”, promotes the establishment,
maintenance, and operation of internal control throughout theGroup, and works to manage risks within the allowable range.

particularly important at Eisai. Further, the Committee promotes
the identification of new risks and prompt, efficient risk
response. In addition, the Committee strives to detect similarpotential risks to the Company at an early stage, in light ofexternal corporate scandals, etc., and implements measures
to prevent those risks from being actualized.
CSA (Control Self-Assessment)
Eisai conducts CSA as a risk management tool. As CSA, ENW
department managers identify and evaluate the risks in theirorganizations every year, and then address these risks. In
addition, Eisai enhances the effectiveness of risk managementby having all corporate officers develop an understanding of
the risks that are important to the whole company, identify andevaluate those risks, and then follow up on the status of
responses to those risks.

Promoting the Risk Management System and Risk Response
With the Corporate Officer in charge of internal control as thechair and with advice from the Board of Directors, the Risk
Management Committee centrally manages the risks that are
Eisai risk management structure<Board of Directors>• Establishment of rules for preparing necessary systems for ensuring the appropriateness in the performance of duties by corporate officers• Oversight of the establishment, maintenance, and operation of internal control by corporate officers
AdviseReportCorporate officer in charge of internal control
Risk Management Committee(Chair: Corporate officer in charge of internal control)• Centrally manage risk information• Proposals to and support for corporate officers

Secretariat

Corporate Compliance andRisk Management Department(Provision of internal and external risk information)

Corporate officer

Corporate officer

Corporate officer

Establishment, maintenance, and operation of internal control

Individual departments
and organizations

Department in charge of risk management
Person responsible for/person in chargeof promotion of CSA

Support for establishment,
maintenance, andoperation of internal control(promotion of CSA)Internal Audit Activities Based on International Standards
In order to strengthen independence, the Company has
assigned executive internal auditors who manage the internal
auditing of the Company as a whole, overseen by the corporate
officer responsible for internal audits. These auditors work with
the Corporate Internal Audit Department, which is in charge of
the Company’s internal audits, as well as internal audit
departments in each region including the United States, Europe,and China to perform internal audits globally. Moreover, in order

to increase the quality of the Company’s audits, in addition toestablishing opportunities to share information with the
Accounting Auditor on a regular basis and striving to collaborate
toward accurate and efficient internal audits, we also holdperiodic meetings with an external assessment committee
composed of outside experts and receive broad evaluations
about matters such as the main internal audit reports and theresults of self-assessments of internal audit activities.

＊1 Please visit the following link for the mission statement and characteristics of the Corporate Internal Audit Department.
https://www.eisai.com/company/governance/audit/index.html＊2 For details about business risk, please refer to the “Notice of Convocation of the 111th Ordinary General Meeting of Shareholders” (pages 157-165).
https://www.eisai.com/ir/stock/meeting/pdf/einv111_all.pdf

Eisai Value Creation Report 2023

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Business Activities with Consideration for the Global Environment
In order to achieve social good, Eisai aims to ensure the sustainability of the global environment.
Focusing on climate change, we have set medium- to long-term goals to tackle a variety ofenvironmental issues and are moving forward in a planned manner.

Materiality to Effectively Realize
Social Good

Realization of Social Goodin Three Areas

Management Strategies

Data Sectionenergy, and were shortlisted (in the Best Newcomer category)has received external recognition, including selection for theat the August 2022 RE100 Leadership Awards, which

third consecutive year as one of the “Carbon Clean 200”, arecognize outstanding initiatives among the member

ranking of the world’s top 200 listed companies contributing tocompanies.
The results of these efforts were certified as “A-” in the2022 CDP＊4 Climate Change Report. In addition, the Company

a reduction in fossil fuel consumption, and inclusion in the
S&P/JPX Carbon Efficient Index.

Roadmap for the achievement of carbon neutrality

Initiatives to Ensure the Sustainability of the Global Environment in order to Achieve Social GoodAs a human health care (hhc) company, the Eisai Group’s goal isto accomplish the social good of “relieving anxiety over health”
and “reducing health disparities”. There is a relationship between
the global environment and people’s health, and the global
environment can be seen as the foundation of business activities
aimed at achieving social good. Based on this concept, the Eisai
Group has established the ENW (Eisai Network Companies)
Environmental Policy. In April 2022, we have further establishedthe Eisai Environmental Management Vision, and the entire
company has been working together on environmental
protection. In addition to climate change countermeasures
aimed at achieving carbon neutrality by fiscal 2040, we haveestablished medium-term goals for the sustainable use of water,
recycling of resources, preservation of biodiversity, and proper
management of chemical substances. We are moving forward
systematically with this plan and aim to efficiently achieve theGroup’s goal of social good.
Disclosure of Information Corresponding to TCFD
Recommendations＊1
In June 2019, Eisai endorsed the recommendations made by
the Task Force on Climate-related Financial Disclosures (TCFD),
tried the climate scenario analysis in accordance with therecommendations, and disclosed the results of the analysis infiscal 2020. In fiscal 2022, we again conducted an analysis
considering multiple climate scenarios to reassess the potential
impact of climate change-related risks and opportunities on
the Eisai Group. The climate-related risks and opportunities we
identified are summarized below. Under the risk management
system, we are working to prevent these risks frommaterializing, and we aim to realize the opportunities throughour business activities.
Identified Climaterelated Risks andOpportunities

Risk/Opportunity
Stagnation of production activities

Physical Risk

Damage from natural disasters
Increased health risks
Increased costs due to carbon tax/increased energy costs

Transition risk

Additional capital investment
Responding to the demand for low-carbon products
Lower trust from stakeholders

Opportunity

81

Responding to health care needs due to climate change

Eisai Value Creation Report 2023

Initiatives to Reduce Greenhouse Gas Emissions
The Eisai Group has set a scientifically-based medium- tolong-term greenhouse gas emission reduction target, called a
Science Based Target (SBT), of 2.0°C＊2, and is working to
reduce CO2 emissions. Furthermore, in May 2021 the Groupissued its Statement of Commitment to Carbon Neutrality,
under which we aim to switch all of the electricity used in ourbusiness activities to renewable energy (RE) by fiscal 2030 andreduce CO2 emissions throughout the whole Eisai Group to arange absorbable by nature and achieve net zero emissions byfiscal 2040, and we created a roadmap to achieve those goals.
Going forward, in addition to continuing energy-saving
activities, we will continue investing in decarbonization, expand
deployment of renewable energy, shift our sales fleet to lowcarbon or decarbonized vehicles, and introduce advanced
technologies.
With regard to investments, in fiscal 2022 we introduced
and began applying Internal Carbon Pricing (ICP), which
promotes effective investment in CO2 emission reductions by
converting those reductions into monetary amounts andvisualizing them, then incorporating the environmental value
into an investment decision criterion. With regard to the
reduction of greenhouse gas emissions in the supply chain, we
will steadily promote the reduction of greenhouse gas
emissions by strengthening cooperation with suppliers to
identify emissions and set appropriate targets.
In the results for fiscal 2022, the introduction of electricity
from renewable energy was advancing company-wide, and theadoption rate of renewable energy was 95.4%. As a result of
these efforts, CO2 emissions were reduced by 60.2%(compared to fiscal 2016), and the fiscal 2030 reduction targetof 2.0°C set under the SBT has been achieved for the third
consecutive year. Therefore, in March 2023 we applied to the
SBT to update our target to a more stringent 1.5°C＊3 and we
aim to obtain certification in fiscal 2023. Note that in fiscal
2023 we expect to achieve the RE100 switch of all of theelectricity used in our business activities to renewable energy
seven years ahead of schedule.
In addition, in December 2020, Eisai joined the Japan
Climate Initiative, a network of companies, local governments,
NGOs, and others actively working to address climate change.
In September 2021, we also became a member of RE100, aninternational initiative aimed at seeing companies obtain 100%of the electricity they use in their businesses from renewable(t-CO 2)140,000<Results for fiscal 2022>

Scope 2CO 2 emissions
derived fromelectric power

Achieve RE100
in fiscal 2023

70,000- Renewable energy adoption rate: 95.4%- Scope 1 and 2: Reduction of 60.2% (compared to fiscal 2016)- Achieve SBT target of 2.0°C for 3 consecutive years- Apply for update to SBT target of 1.5°C

Scope 2CO 2 emissions
derived fromsteam power

Updated to SBT target of 1.5°C

Scope 1
CO 2 emissions
derived fromfossil fuels

0

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040 (Fiscal year)

Use renewable energy certificates, non-fossil fuel certificates, etc., introduce 100% renewable electricity, and introduce in-house solar power generation
Introduce internal carbon pricing and steadily promote environmental investments
Introduce hybrid (some electric) company vehicles

Switch to fuel cell vehicles, electric vehicles, etc.
＊5

Introduce PPA

New technologies using hydrogen, ammonia, etc. (electricity, heat)

Adoption of renewable energy
Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

0.6%

0.6%

4.8%

26.8%

52.9%

63.1%

95.4%

Sustainable Water Use and the Formation of a
Recycling-Oriented Society
Eisai aims to contribute to the formation of a recycling-oriented
society through the sustainable use of resources, including
water.
We are promoting the reduction of water usage through theefficient use of water resources, including recycling, and haveset a medium-term goal of a reduction of 7% (sales revenue
intensity) compared with fiscal 2023 by fiscal 2030. In addition,
we have also stipulated medium-term targets of maintaining
high-quality wastewater treatment that contributes to water
quality preservation, complying with water-related environmental
criteria until fiscal 2030, and continuing to have zero legal
violations. These efforts were certified as “A-” in the 2022 CDP
Water Security 2022 Report.

Preservation of Biodiversity
Eisai strives to conserve biodiversity and use biological resourcesin a sustainable manner and aims to contribute to the realizationof a society coexisting with nature based on harmony with theglobal environment. In August 2020, we established Biodiversity
Guidelines. In addition to complying with the Cartagena Act, theInvasive Alien Species Act, and other laws and regulations, we
strive to understand and improve the impact on biodiversity ateach stage of our business activities and we promote businessactivities that consider the natural environments of forests,
satoyama (a traditional Japanese rural landscape), rivers, andoceans. As well as identifying and preserving important species in
the areas around almost all of our sites of operation by fiscal
2030, we have established a medium-term goal of also adopting
environmentally friendly materials in product packaging and arepromoting further initiatives.

＊1 Task Force on Climate-related Financial Disclosures (TCFD) is a working group of the Financial Stability Board (FSB), consisting of central bank governors and finance ministers from every country. This is a private
sector-led task force that encourages companies and others to efficiently disclose climate-related financial information in order to encourage investors and others to make appropriate investment decisions. Please
visit the following link for details on the disclosure of information in response to TCFD recommendations.
https://www.eisai.com/sustainability/environment/climate-countermeasure/tcfd-disclosure/index.html＊2 SBT target of 2.0°C: 30% reduction of GHG emissions (Scope 1 and 2) by fiscal 2030 (compared to fiscal 2016). 30% reduction of GHG emissions (emissions based on purchased products and services in Scope 3,
Category 1) by fiscal 2030 (compared to fiscal 2016).
＊3 SBT target of 1.5°C: 55% reduction of GHG emissions (Scope 1 and 2) by fiscal 2030 (compared to fiscal 2019). 55% reduction of GHG emissions (Scope 3 and 1) by fiscal 2030 (compared to fiscal 2019) (sales
revenue intensity).
＊4 CDP is an NGO founded in London in 2001. It sends out questionnaires to the world’s top companies on behalf of major global institutional investors, analyzes and evaluates the answers, and provides theinformation to investors, governments, and businesses. Information from CPD has become an important decision-making tool for institutional investors in ESG investing.
＊5 Power Purchase Agreement (PPA) is an agreement for power purchases that involves consumers’ purchasing and domestically consuming power through a power grid where electricity is generated from renewable
resources by equipment owned by a third party.
※ Please visit the following link for the “ENW Environmental Policy” and the “Environmental Management Vision”.
https://www.eisai.com/sustainability/environment/management/vision/index.html※ For more detailed information on Eisai’s environmental activities, please refer to the “Environmental Report”.
https://www.eisai.com/ir/library/annual/index.html

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82

Management Strategies

Enhancement of Information Security
With the increasing importance of the utilization of digital technology in building the hhceco (hhcconcept + ecosystem) system, minimizing information security risks while at the same time deliveringvalue to society and fulfilling our social responsibilities by ensuring the safety of information andeffectively leveraging it is considered to be a critical issue for the Eisai Group, and we are working on
information security initiatives.

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Business Activities based on Respect for Human Rights/
Sustainable Procurement
Eisai contributes to the development of fair business activities by fulfilling the responsibility of acompany based on international standards to respect human rights, and promotes initiatives toaddress environmental and social issues throughout the entire supply chain.

Respect for Human Rights
Risks Related to Information Security
As our use of IT and digitalization makes strides forward, every
year the possibility of progressively sophisticated cyber-attacks
triggering a suspension of business or other outcome that would
impact business activity increases. As a result, more than ever,the need for a strong information-security framework is growing.
Considering the personal information, undisclosed
information, and other types of important information in its
possession, the Group could also see its credibility andcompetitive advantages suffer greatly if a data breach were to
result in a leak of sensitive information. In particular, in recent
years, we are also dealing with the growing need to respond
appropriately to global demands for the protection of personal
information. In addition, leaks of unreleased structural formulasfor projects in the drug discovery phase would have a negative
impact on the processes for filing and acquiring patents, which
could have an impact on business results.
Information Security Framework
Eisai’s Board of Directors has established the “Rules for
Preparing the Necessary Systems for Ensuring Appropriatenessin the Performance of Duties by Corporate Officers”. The Board
appoints a corporate officer in charge of the storage andmanagement of information and establishes the framework, andstipulates the establishment and operation of the necessary
rules. In accordance with these rules, the Company has
established a personal information protection system, aconfidential information security system, and others.
Under these systems, to prevent cyberattacks and otherthreats from interfering with important business, as well as
safeguard against leaks of personal or confidential information,etc., in addition to strengthening system infrastructure security,
we establish regulations on the protection of personal
information and the management of confidential information,
provide officers and employees with education on management

83

Eisai Value Creation Report 2023

of information in daily work and learning opportunities such as
training on cyber security, and are working to continuallyenhance governance related to global information security andimplement related measures.
In departments that handle personal information on a daily
basis, we strive for systems and operations that have received
Information Security Management System (ISMS) andPrivacyMark certification and are objectively recognized ashaving the three components of information security:
confidentiality, integrity, and availability of management.
Responding to Unauthorized Access
In April 2023, we found that there had been unauthorizedaccess to some information on the Eisai Group’s cloud platform
due to unauthorized use of the account of an employee of aforeign subsidiary by an outside party. Recognizing the possibility
that this information could include information belonging toparties related to our business partners, we immediately
responded by blocking unauthorized access, strengthening themonitoring of the Group’s network and conducting ongoing
monitoring of information that may have been leaked. We sent
individual apologies and notifications to the parties whose
information may have been leaked and set up a dedicatedhotline for them. Furthermore, in June 2023, the Eisai Groupexperienced a ransomware incident that encrypted some of theGroup’s servers. In response to this case, we are working
closely with external experts and law enforcement in an effort toprotect our systems and to make a successful recovery, and weare working to minimize any inconvenience to our partners andstakeholders.
At the Eisai Group, we have taken these incidents very
seriously and, in addition to working to further strengthen our
information management system, we are taking strict measuresagainst criminal conduct such as unauthorized access.

Eisai recognizes that human rights constitute the most
universal and fundamental requirement for our businessactivities and, in accordance with international norms such as
the UN “Guiding Principles on Business and Human Rights”,
we are advancing initiatives that respect human rights. We
formulated the “Eisai Network Companies (ENW) Human
Rights Policy” in March 2019 after obtaining the approval of
the Executive Board, which is the highest decision-making
body of business execution, and the consent of the Board of
Directors.
Main Initiatives for Fiscal 2022
In order to broadly identify human rights issues within the
Company, we met to dialogue with labor union representatives,
separately from the usual labor-management consultations,with human rights as the agenda. There were proposals suchas conducting surveys in order to absorb the human rights
challenges within the company and promptly address the risks.
We plan to continue holding these meetings going forward. As
for human rights challenges upstream in the supply chain,carnauba wax, used for glazing tablets has been identified as ahuman rights risk, so we have conducted a traceability survey,

identified the source company, and confirmed that the raw
material in question has been certified by a certification body
(Fair for Life). Regarding grievance mechanisms, (mechanisms
and systems for processing complaints related to human rights
abuse, resolving problems, and providing relief), we will
maintain the existing internal whistle-blowing system and thecompliance whistle-blowing system for our business partners
and continue to respond to human rights challenges atstakeholders in the supply chain.
Raising Awareness of Human Rights
To promote business activities that are based on respect forhuman rights, we continue to conduct human rights awarenessprograms for corporate officers and employees of Eisai anddomestic network companies. In fiscal 2022, human rights
awareness training was conducted online with 5,147 domestic
ENW employees participants with the theme of “promoting aworkplace where all employees can play an active role”. In
addition, lectures were held at which external persons withdisabilities were invited as speakers, with a total of 6,875
attendees, either at the live lecture or through video streaming(including those who viewed both).

Sustainable Procurement
Eisai is a member of the Pharmaceutical Supply Chain Initiative(PSCI), a global initiative aimed at building a responsible supply
chain in the pharmaceutical industry, and we respect the PSCI
code of conduct and are promoting sustainable procurement
initiatives with our business partners. As an approach to the
supply chain, we are explaining our policies, demanding
compliance with the “Code of Conduct for Business Partners”(the “Code of Conduct”), which was formulated in accordancewith the PSCI code of conduct, and giving feedback onsustainability assessments using the EcoVadis assessment
system and the results of those assessments, and are working
to strengthen the engagement of our business partners.

Initiatives for Fiscal 2022
We have expanded sustainable procurement to cover the directmaterial supply chains of our overseas factories. Among these,
we implemented coverage of 40 main suppliers (over 90%
coverage based on transaction value) of two factories in China
and India. In addition, regarding the business partners for directmaterials at our domestic plants, we held briefing sessions as we
did the year before, which were attended by 56 new suppliers.
In September 2022, we established the ENW Global
Procurement Standard, which defines the items to be compliedwith in the procurement activities of the entire ENW. This
stipulates the promotion of sustainable procurement as one of
the items to comply with, and we will also request compliancewith the Code of Conduct if the transaction value of indirectmaterials exceeds a certain standard.

Eisai Value Creation Report 2023

84

Management Strategies

Materiality to Effectively Realize
Social Good

Realization of Social Goodin Three Areas

Data Section

Major ProductsTrends in Revenue of Global 4 brands＊2

Breakdown of revenue＊1

Other business¥60.0 billion(8.1%)

Consolidated
revenue in fiscal 2022

¥744.4 billion

Pharmaceuticalbusiness¥684.4 (91.9%)
Neurology area
¥144.5 (19.4%)
Oncology area
¥299.1 (40.2%)
Others¥217.4 (29.2%)
Consumer healthcare
business¥23.5 (3.2%)

Data
Section
Neurology Area®

LEQEMBI(Billions of yen)

400

280.0
16.4
31.9

200

177.4
25.3
123.1
19.3
41.3

40.2

201.4
26.7

363.5

29.4

42.5

37.1

25.5
34.5

41.3

261.0

249.6

39.4

3.1

357.4

192.3

37.6
133.9

111.9

62.6

0

fiscal 2018

fiscal 2019fiscal 2020

fiscal 2021

fiscal 2022

■Lenvima® ■Halaven® ■Fycompa® ■Dayvigo®

forecast for
fiscal 2023

Lenvima® is growing significantly due to the expansion of existing indications andthe indications of Lenvima® and KEYTRUDA® combination.
Fycompa® and Halaven® have grown steadily, and Dayvigo® has grown since its
launch in fiscal 2020.
In fiscal 2023, Lenvima® and Dayvigo® are expected to continue to grow steadily,and Fycompa® is expected to grow in regions other than the United States, where
the commercialization rights were transferred in fiscal 2022.

Revenue in fiscal 2022: ¥144.5 billion (accounting for 19.4% of consolidated revenue, and 106.6% of fiscal 2021)(generic name: lecanemab) Release year 2023 In-house

Treatment for Early Alzheimer’s disease (AD)In July 2023, FDA Granted Traditional Approval for LEQEMBI® for the Treatment of Alzheimer’s
Disease in the United States. Applications were Submitted for Approval in Japan, Europe and China.
An anti-amyloid-β (Aβ) protofibril antibody obtained through joint research between BioArctic AB (Sweden) and Eisai. It isthought to reduce the rate of AD progression through the elimination of Aβ protofibrils, which are reported to be neurotoxic.
Studies with LEQEMBI® to confirm new dosing regimens for development of maintenance therapy after elimination of Aβ
in the brain and to develop a subcutaneous formulation to improve convenience. AHEAD3-45, a Phase III trial for earlystage Alzheimer’s disease, is also underway. Co-developed and co-commercialized with Biogen Inc. (the U.S.).
®

Fycompa(generic name: perampanel) Release year 2012 In-house

Antiepileptic agent

Revenue in fiscal 2022: ¥37.1billion (116.5% of fiscal 2021)
An AMPA receptor antagonist discovered and developed in-house. Fycompa® selectively and noncompetitively binds to AMPA receptors, which are mainly present in the post-synaptic membrane, anddirectly suppresses neuronal hyperexcitation caused by glutamate, thereby exerting an anti-seizure
effect.
In fiscal 2022, revenue continued to grow mainly in the Americas and EMEA. Rights in the U. S.
were transferred to Catalyst Pharmaceuticals Inc. in January 2023. In fiscal 2023, Fycompa® isexpected to continued to grow in regions excluding the U.S.

Trends in Revenue by Region※ (Billions of yen)

25.3
1.1
19.3
0.9
6.1
9.3
3.0

26.7
1.3
7.6

7.1
0.1

31.9
1.5

37.1
1.7
11.7

9.2
1.1

2.4

0.5

13.0

12.2

3.9

5.1

25.5
2.0
12.5

14.6

15.2

5.4

6.1

3.0
7.5

fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022 forecast for
fiscal 2023
■Japan ■Americas ■China ■EMEA ■Asia and Latin America®

Dayvigo(generic name: lemborexant) Release year 2020 In-house

Anti-insomnia drug

Revenue in fiscal 2022: ¥29.4 billion (178.7% of fiscal 2021)
Dayvigo is an in-house developed orexin receptor antagonist. It helps the transition from wakefulness
to sleep by weakening the action of orexin, which is involved in the regulation of sleep andwakefulness.
Since its launch in fiscal 2020, it has grown significantly, especially in Japan. Dayvigo® is expected
to continue rapid expansion in fiscal 2023.

Trends in Revenue by Region※ (Billions of yen)
42.5
6.5

®

29.4
0.2
4.8
16.4
3.7
3.1
1.1
2.0

12.7

fiscal 2020

fiscal 2021

35.0
24.2

fiscal 2022

forecast for
fiscal 2023

■Japan ■Americas ■Asia and Latin America※A mericas: North America EMEA:Europe, Middle East, Africa, Russia and Oceania Asia and Latin America: Primarily South Korea, Taiwan, India, ASEAN, Central and SouthAmerica, etc.
＊1 Other business: Income mainly from license and the pharmaceutical ingredient business of the parent company＊2 Global 4 brands: Eisai is focusing on increasing value for patients by expanding indications and adding dosage forms with Halaven®, Lenvima®, Fycompa®, and Dayvigo® asglobal brand products.
Eisai Value Creation Report 2023

86

Management Strategies®

Aricept

Others(generic name: donepezil) Release year 1996 In-house

Treatment for Alzheimer’s disease/dementia with Lewy bodies

Revenue in fiscal 2022: ¥24.4 billion (99.7% of fiscal 2021)
A dementia treatment developed in-house that is believed to slow the overall progression ofsymptoms associated with Alzheimer’s disease by inhibiting acetylcholinesterase enzyme, which
breaks down the neurotransmitter acetylcholine. The agent was approved in Japan, the Philippines,
and Thailand for the additional indication for the treatment of dementia with Lewy bodies.
Since its launch in the United States in 1996, at its peak annual sales of approximately 320 billion
yen worldwide, it has supported Eisai’s business and global expansion. It has already lost exclusivity
globally, and revenue has decreased due to the impact of expansion of generics and price revisions.

Trends in Revenue by Region※ (Billions of yen)
40.2

9.3
0.9

10.8

26.3

24.4

24.4

11.9

13.0

0.2
5.2
0.3
6.9

6.1

9.3

fiscal 2020

fiscal 2021

fiscal 2022

0.2
10.9
0.2
5.8
0.3

9.7
0.9

17.9

fiscal 201813.3

fiscal 2019

4.2

■Japan ■Americas ■China ■EMEA ■Asia and Latin America®

Methycobal (generic name: mecobalamin) Release year 1972 In-house
Peripheral neuropathy treatment

Revenue in fiscal 2022: ¥30.8 billion (109.4% of fiscal 2021)
A mecobalamin (Vitamin B12 coenzyme) product developed in-house. Restores damaged peripheral
nerves and is widely used for the treatment of peripheral neuropathy in Japan and countries in Asia.
In Japan revenue is on a declining trend due to the impact of the expansion of generics, etc. On
the other hand, in China, we became the first Japanese company to bid for government centralizedpurchasing successfully in August 2020. This has made it possible to continuously deliver to patients
throughout China. Due to the above reasons, revenue has increased in fiscal 2022.

Trends in Revenue by Region※ (Billions of yen)
39.3
3.2
1.2
20.0

15.0

fiscal 2018

38.0
3.0
1.0
20.1

28.1
3.6
1.2

17.5

30.8
3.9

12.5

14.5

13.9

12.4

10.8

10.3

fiscal 2019fiscal 2020

fiscal 2021

fiscal 2022

Revenue in fiscal 2022: ¥249.6 billion (129.8 % of fiscal 2021)
A selective tyrosine kinase inhibitor (TKI) with a novel binding mode developed in-house. Lenvima®
exhibits antitumor effects by inhibiting receptor tyrosine kinases such as VEGFR1-3 and FGFR1-4,
which are involved in tumor angiogenesis and tumor growth. Approved for the treatment of thyroid
cancer and unresectable hepatocellular carcinoma as monotherapy, also approved for use in thetreatment of thymic carcinoma in Japan and approved for combination therapy with pembrolizumab
for renal cell carcinoma and endometrial cancer. In Europe, the product name for the treatment ofrenal cell carcinoma is Kisplyx®.
In fiscal 2022, revenue in the China region decreased due to the expansion of generics and inother regions Lenvima® achieved significant growth due to additional indications for endometrial
cancer and renal cell carcinoma. In fiscal 2023, we aim for further growth in endometrial cancer andrenal cell carcinoma.

Trends in Revenue by Region※ (Billions of yen)

192.3
1,33.962.6 4.0
3.1 8.0
37.5
10.0

111.9
12.7 4.8
13.3

15.8
18.5

68.0

81.0

13.1

12.2

6.5

21.8
35.0

249.6
11.1
30.9
8.8

32.2

27.0

161.6

174.0

13.7

17.5

116.5

10.3

261.0
10.5
32.0

An anticancer agent developed in-house. A synthetic analog of halichondrin B derived from themarine sponge Halichondria okadai. Shows an antitumor effect by arresting the cell cycle throughinhibition of the growth of microtubules. Approved for the treatment of breast cancer and liposarcoma(soft tissue sarcoma in Japan).
In fiscal 2022, revenue was strong mainly in the Americas, EMEA, and Japan. In fiscal 2023,
revenue is expected to decline due to the impact of the competitive environment.

(Billions of yen)

15.0

7.3

1.5
0.1

fiscal 2020

fiscal 2021

fiscal 2022

forecast for
fiscal 2023®

Goofice (generic name: elobixibat) Release year 2018 In-license
Trends in Revenue in Japan

Revenue in fiscal 2022: ¥6.5 billion (107.3 % of fiscal 2021)(Billions of yen)
8.0

Goofice® is a once-daily, orally available constipation treatment with a novel action mechanism which EA
Pharma in-licensed from Albireo AB (Sweden). Goofice® is believed to stimulate defecation by increasing
the flow of bile acids to the large intestine, softening the stool, and activating bowel movement.
EA Pharma and Mochida Pharmaceutical Co., Ltd. market the product respectively, and Eisai copromotes the product with EA Pharma.
Since its launch in fiscal 2018, it has continued to grow stably. Goofice® is expected to continue
growth in fiscal 2023.

6.1

6.5

5.0
3.6

1.2

fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022 forecast for
fiscal 2023

Revenue in fiscal 2022: ¥23.5 billion (accounting for 3.2% of consolidated revenue, and 98.6% of fiscal 2021)

Trends in Revenue in Japan

Revenue in fiscal 2022: ¥14.1 billion (98.8 % of fiscal 2021)
This includes our signature product, Chocola BB Plus, preparation forrough skin and stomatitis, as well as a variety of products, including
Class 3 OTC drugs, designated quasi-drugs and nutritionally functional
foods.
The Chocola BB® series celebrated its 70th anniversary, and revenue
remained strong. In fiscal 2023, Chocola BB® an increase in revenue is
expected due to investment in new products and inbound demand＊1.

13.9

®

Chocola BB® Plus:Class 3 OTC drug

Chocola BB®
Royal 2:
Designatedquasi-drug(Billions of yen)
16.0

15.5
13.4

14.3

14.1

fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022 forecast for
fiscal 2023

fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022 forecast for
fiscal 2023
■Japan ■Americas ■China ■EMEA ■Asia and Latin America

Other business®

Revenue in fiscal 2022: ¥41.3 billion (104.9 % of fiscal 2021)

A novel oral JAK inhibitor with selectivity for JAK1. Gilead Sciences K.K. (Gilead) received approval for thetreatment of rheumatoid arthritis and the treatment of patients with active moderate-to-severe ulcerative
colitis in Japan.
Gilead and Eisai co-market Jyseleca® for rheumatoid arthritis indication in Japan. Gilead and EA
Pharma, a subsidiary of Eisai, co-promote the indication of ulcerative colitis. In fiscal 2021, the lift ofrestrictions on administration led to increased market penetration and in fiscal 2022 the additional
indication for active ulcerative colitis contributed to the increase in revenue. Jyseleca® is expected tocontinue expansion in fiscal 2023.

®

Halaven (generic name: eribulin) Release year 2011 In-house
Anticancer agent/microtubule dynamics inhibitor

Trends in Revenue in Japan

Revenue in fiscal 2022: ¥7.3billion (479.6 % of fiscal 2021)

Chocola BB Products®

Lenvima (generic name: lenvatinib) Release year 2015 In-house
Anticancer agent/kinase inhibitor®

Jyseleca (generic name: filgotinib) Release year 2020 In-license

Consumer Healthcare Business

Revenue in fiscal 2022: ¥299.1 billion (accounting for 40.2% of consolidated revenue, and 125.4% of fiscal 2021)

Data Section

Revenue in fiscal 2022: ¥217.4 billion (accounting for 29.2% of consolidated revenue, and 99.1% of fiscal 2021)

Bile acid transporter inhibitor

34.2
3.0
1.3

■Japan ■China ■EMEA ■Asia and Latin America

Oncology Area

Materiality to Effectively Realize
Social GoodJAK (Janus kinase) inhibitor

34.9
11.8
0.2

Realization of Social Goodin Three Areas

Trends in Revenue by Region※ (Billions of yen)
41.3
2.7

40.2
2.1

12.7

13.8
0.4

16.4

14.7

9.4

9.2

37.6
2.6

39.4
2.4

12.4

12.8

41.3
3.3
13.6

1.6

1.5

2.0

12.6

14.3

13.9

8.5

8.3

8.5

34.5
3.0
11.5
2.5

Revenue in fiscal 2022: ¥60.0 billion (accounting for 8.1% of consolidated revenue, and 43.2% of fiscal 2021)

In March 2018, we agreed on a strategic alliance with Merck & Co., Inc. regarding Lenvima®. From thestart of the alliance to March 2023, we have received 295.7 billion yen in proceeds (upfront payment forcontract, lump-sum payment for option rights, milestone payments (sales milestones)).
In fiscal 2021, we recorded a upfront contract payment (49.6 billion yen) from a strategic alliance with
Bristol Myers Squibb regarding the antibody drug conjugate MORAb-202. We plan to increase sales
revenue from other businesses through strategic alliances, including sales milestones for Lenvima® in the
future.

Trends in Revenue in Japan(Billions of yen)

139.0
118.4

79.1
13.5

65.5

69.8

42.2
59.9
76.2

60.0
47.0

26.3
69.2
33.6

43.3
47.0
16.7

9.0

fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022 forecast for
fiscal 2023

8.5

■Recognition of payments associated with Lenvima® ■Others

fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022 forecast for
fiscal 2023
■Japan ■Americas ■China ■EMEA ■Asia and Latin America※A mericas: North America EMEA:Europe, Middle East, Africa, Russia and Oceania Asia and Latin America: Primarily South Korea, Taiwan, India, ASEAN, Central and SouthAmerica, etc.
From fiscal 2022, Hong Kong was changed from Asia and Latin America pharmaceutical business to China pharmaceutical business.
In fiscal 2023, recognition of payments associated with Lenvima® expected are included in forecasts for “Others”.
＊1 Chocola.com
https://www.chocola.com/index.html (Only in Japanese)

87

Eisai Value Creation Report 2023

Eisai Value Creation Report 2023

88

Realization of Social Goodin Three Areas

Management Strategies

ESG IndicesMateriality to Effectively Realize
Social Good

Data Section

Financial Indicators

Scope of data:  Eisai Group (Eisai Co., Ltd. And Group companies in and outside Japan) Eisai Co., Ltd. Eisai Group in Japan (Eisai Co., Ltd. and Group companies in Japan)(Data for subsidiaries and businesses transferred is included until the date the transfer was completed)
Corporate Governance and Compliance
Ratio of outside directors to directors(Outside directors/Directors)
Ratio of female directors to directors(Female directors/Directors)
Ratio of female corporate officers to corporate officers(Female corporate officers/Corporate officers)
Average age of corporate officers
Directors (inside) (Millions of yen)Compensation(Base compensation, bonuses Directors (outside) (Millions of yen)
and retirement allowances)
Corporate officers (Millions of yen)
Number of times offered
Compliance training
Number of executive training courses
Total participants (approx.)
Number of times offered
Human rights training
Participants
Involvement with Employees
Total
Japan
Americas (North America)
Number of Eisai GroupEMEA (Europe, Middle East, Africa,
employees by region
Russia and Oceania)
China
Asia and Latin America
Eisai Ratio of women
Eisai group ratio of women(in management)
Ratio of women in management
Total
Number of employees ofMale
Eisai Co., Ltd.
FemalePeriodAt fiscal year end
At fiscal year end
At fiscal year end
At fiscal year end
At fiscal year end

Anuually
Anuually
PeriodAt fiscal year end(Unit: Billions of yen)fiscal 2013 fiscal 2014 fiscal 2015 fiscal 2016 fiscal 2017 fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022
63.6%
63.6%
63.6%
63.6%
63.6%
63.6%
63.6%
63.6%
66.7%
63.6%
7/11
7/11
7/11
7/11
7/11
7/11
7/11
7/11
8/12
7/11
9.1%
9.1%
9.1%
9.1%
9.1%
9.1%
9.1%
9.1%
8.3%
9.1%
1/11
1/11
1/11
1/11
1/11
1/11
1/11
1/11
1/12
1/11
4.3%
9.1%
8.0%
14.8%
11.1%
13.8%
10.0%
13.3%
13.8%
18.2%
1/23
2/22
2/25
4/27
3/27
4/29
3/30
4/30
4/29
4/22
53.0
53.1
53.6
52.9
52.9
53.2
54.2
54.4
54.7
55.4
116
114
113
113
113
113
113
113
113
113
82
76
74
74
74
88
92
93
103
97
1,055
976
1,310
1,247
1,203
1,219
1,378
1,049
1,180
1,004
65
56
47
62
65
92
172
83
89
111
2
2
2
2
2
3
2
2
2
1
5,800
5,000
4,600
5,800
4,800
6,200
7,200
5,000
6,000
8,300
23
28
30
34
34
34
29
16
15
14
2,452
2,405
5,001
5,457
5,477
5,686
6,220
5,145
5,295
5,147
fiscal 2013 fiscal 2014 fiscal 2015 fiscal 2016 fiscal 2017 fiscal 2018 fiscal 2019 fiscal 2020 fiscal 2021 fiscal 2022
10,41910,183
9,877
10,452
10,456
10,683
10,998
11,237
11,322
11,076☑4,613☑4,591☑4,490
5,200
4,712
4,523
5,009
4,914
4,888
4,593
☑1,820☑1,982☑1,755
1,763
1,719
1,290
1,296
1,240
1,261
1,682
811

893

913

983

1,022

1,046

1,113

☑1,166☑1,200☑1,234

1,607
1,252
–
–
3,583
2,845
738
20.6%
1,282
61
4.8%
15.4%
6/39
43.7
19.4
20.3
15.9
1.4%
–
1.9%
–
–
90
1
89
－
73

1,875
1,276
–
–
3,577
2,838
739
20.7%
1,292
65
5.0%
11.6%
5/43
44.1
19.9
20.8
16.2
2.6%
–
3.0%
–
–
95
2
93
－
93

1,909
1,255
–
–
3,508
2,775
733
20.9%
1,206
72
6.0%
17.6%
9/51
44.8
20.4
21.4
16.9
3.1%
–
3.8%
–
–
89
0
89
－
80

1,906
1,374
–
–
3,436
2,708
728
21.2%
1,228
86
7.0%
21.3%
13/61
45.3
20.8
21.9
16.9
2.5%
–
3.4%
–
–
97
5
92
－
75

2,069
1,419
–
–
3,411
2,679
732
21.5%
1,250
100
8.0%
23.9%
17/71
45.3
21.2
22.3
17.3
2.2%
–
11.4%
–
–
105
6
99
58
90

2,087
1,523
–
–
3,212
2,479
733
22.8%
1,203
116
9.6%
23.1%
15/65
45.0
19.9
21.3
15.4
2.1%
–
7.5%
–
–
91
8
83
78
69

☑2,060☑1,578
☑40%
☑28%
3,212
☑2,435
☑777
24.2%
1,198
125
10.4%
18.3%
11/60
44.4
18.9
20.4
14.3
2.0%
–
7.6%
–
–
110
20
90
49
61

☑2,044☑1,505
☑41%
☑33%
3,200
☑2,367
☑833
26.0%
1,187
137
11.5%
28.1%
18/64
43.4
17.8
19.6
12.6
3.1%
11%
4.0%
15%
85%
133
40
93
59
50

☑2,002☑1,595☑42%☑35%
3,171 ＊1
2,326 ＊1
845
＊1
26.6%
1,216 ＊2
145 ＊2
11.9% ＊2
21.6%
＊2
11/51
43.9 ＊1
17.9 ＊1
20.0 ＊1
13.2 ＊1
3.4% ＊1,39% ＊3
4.4% ＊1,4
14% ＊485%
130 ＊1,538 ＊1,592 ＊1,557 ＊1,654 ＊1

Number of users of spousal maternity leave program
Number of users of short working hours program for childcare
Average annual salary(Thousands of yen) (according to the annual securities report)
Gender pay gap
Personal development expenses (thousands of yen)(per employee)
Percentage of handicapped employees

Anuually
Anuually

1,559
1,086
–
–
4,130
3,202
928
22.5%
1,370
59
4.3%
17.4%
8/46
42.5
20
20.7
17.8
1.8%
–
14.2%
–
–
78
1
77
－
86

Anuually

10,401

10,403

10,93910,38910,446

10,992

10,37010,424

9,202

Share of annual female hires (Female/Total)

Anuually

At fiscal year end

177
2.39%
36.9%
31/84
76
46
30
98.2%

176
2.56%
14.3%
2/14
3
2
1
90.5%

198
2.53%
33.3%
35/105
100
66
34
94.7%

210
2.65%
38.2%
21/55
39
20
19
100.0%

214
2.84%
44.3%
31/70
43
23
20
93.0%

221
2.88%
36.3％
33/91
57
32
25
89.7%

259
2.62%
39.8％
74/186
97
50
47
86.0%

213
☑2.63%
39.7%
100/252
130
67
63
81.4%

188
☑2.33%
45.1%
116/257
197
93
104
93.8%

☑71.6% ＊7
169 ＊1,8☑2.45%
32.4%＊1
36/11166 ＊1,937 ＊1,929 ＊1,9
96.9% ＊1,9,10

Anuually

10h46m12h11m

9h11m

8h34m

9h44m

10h28m11h10m12h32m13h59m14h19mAnuually
Anuually

16
–

9
–

16
–

23
–

19
–

17
–

11
–

21
–

21
☑66

Anuually

0.10

0

0

0.10

0.10

0.20

0

0

0.31

0 ＊11,12Anuually

–

–

–

–

–

–

–

–

☑0.52

☑0.63 ＊11,13

Number of work-related fatalities

Anuually
Anuually

0
–

0
–

0
–

1
–

0
–

0
–

0
–

0
–

0
0

Average days of paid holidays taken(per non-management employee)

Anuually

12.3

12.1

12.1

12.4

12.9

13.5

12.5

11.5

11.2

Number of managers
Ratio of women in management

Total
Female
Total
Newly appointed
managers

Average age
Average years of employment

Total
Male
FemaleEmployee engagement/satisfaction

Retention rate of hired new graduates after 3 years
Average monthly overtime hours(per non-management employee)
Number of work-related accidents(lost time injuries, traffic accidents)
Lost Time Injury Frequency Rate (LTIFR),
more than 4 day
Lost Time Injury Frequency Rate (LTIFR),
more than 1 day

At fiscal year end
At fiscal year end

At fiscal year end
Anuually
Anuually
Anuually
Anuually
Anuually

Total turnover rate

Number of hired new graduates

At fiscal year end

At fiscal year end

Turnover rate (resignation)

Number of users of childcare leave program

At fiscal year end

Total
Male
FemaleTotal
Male
FemaleAnuually

Anuually
Anuually
Anuually

Anuually

10,50311 ＊11☑53 ＊11

0 ＊11
0 ＊11
13.3

＊1 Based on the number of fulltime Eisai Co., Ltd. employees including employees dispatched to Eisai Network Companies (ENW) ＊2 Based on the number of employees disclosed in the Annual Securities Report (Eisai Co., Ltd. employees
include those dispatched from ENW and exclude those dispatched to ENW) ＊3 Voluntary termination only, not including mandatory retirement due to age, voluntary retirement, etc. ＊4 Covering all forms of leaving the Company, such as
voluntary termination, mandatory retirement due to age, voluntary retirement, etc. ＊5 Childcare leave program: Entitlement: Workers who requested childcare leave for child/children under the age of 3; Period: Until the day specified by theemployee, provided that this is before the child’s 3rd birthday ＊6 Spousal maternity leave program (Launched in April 2018): Entitlement: Workers whose partner has given birth; Period: Up to 5 days of special paid holiday ＊7 The gender pay
gap shows the ratio of women’s wages to men’s wages. There is no difference in wages for the same work, and this is due to the difference in the composition of the number of workers by grade. ＊8 Personal development expenses include
training, studying abroad, and participation in academic conferences ＊9 Not including midcareer employees ＊10 At the beginning of next fiscal year (e.g. The number of retention rate after 3 years for fiscal 2022 indicates the rate of retentionof the new graduates hired in fiscal 2020 as of April 1, 2023) ＊11 These figures cover employees, part-time workers, and temporary workers.
＊12 Eisai Co., Ltd. Lost Time Injury Frequency Rate = Number of casualties resulting from occupational and traffic accidents (absence of 4 day or more) ÷ Total working hours × 1,000,000＊13 Eisai Group Lost Time Injury Frequency Rate = Number of casualties resulting from occupational and traffic accidents (absence of 1 day or more) ÷ Total working hours × 1,000,000
According to the 2022 Survey of Occupational Accident Trends conducted by the Ministry of Health, Labour and Welfare, the Lost Time Injury Frequency Rate for the manufacturing industry was 1.25.
☑ These information is guaranteed by SGS Japan K.K. Years for which no data were obtained are indicated by "-".
※ For further details of ESG indices, please refer to Eisai’s Corporate Website.
https://www.eisai.com/sustainability/management/pdf/esg_index.pdf

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Eisai Value Creation Report 2023

Financial Indicators (IFRS)

fiscal 2014

fiscal 2015

fiscal 2016

fiscal 2017

fiscal 2018

fiscal 2019fiscal 2020

fiscal 2021

fiscal 2022

fiscal2023
forecast〈Income Statement Items〉
Revenue
Pharmaceutical business

548.5

547.9

539.1

600.1

642.8

695.6

645.9

756.2

744.4

712.0

525.7

531.8

530.1

553.2

563.7

577.3

586.1

626.3

684.4

665.0

		Japan＊1,2,3

278.4

266.8

291.1

296.2

301.1

247.1

231.9

214.0

215.4

238.5

		Americas

119.8

122.2

117.2

113.9

97.9

127.9

142.8

172.0

212.7

205.5

		China

41.0

49.3

49.3

56.2

66.3

77.0

85.1

106.4

110.8

104.5

		EMEA

38.5

41.3

37.8

44.3

49.8

53.7

55.2

59.3

72.2

67.0

		Asia and Latin America

30.9

34.0

34.7

42.6

48.7

46.6

45.9

50.6

49.8

49.5

Consumer healthcare business＊3

17.0

18.1

19.0

21.7

24.3

24.9

25.2

23.8

23.5

23.5

Other business

22.8

16.2

9.0

46.8

79.1

118.4

59.9

129.9

60.0

47.0

193.6

194.5

195.9

201.3

184.5

175.7

161.3

174.8

177.8

163.5

Cost of sales
Gross profit

354.9

353.5

343.2

398.8

458.3

519.9

484.6

581.4

566.6

548.5

Research and development expenses

131.9

122.3

117.2

139.6

144.8

140.1

150.3

171.7

173.0

152.0

Selling, general and administrative
expenses

194.5

192.8

174.9

183.9

228.2

256.3

281.6

366.4

358.3

353.0

Other income

1.0

17.7

13.6

3.0

2.6

6.4

1.5

14.6

8.3

6.5

Other expenses

1.1

4.1

5.6

1.1

1.7

4.4

2.6

4.1

3.5

–

Operating profit

28.3

51.9

59.1

77.2

86.2

125.5

51.5

53.7

40.0

50.0

Profit for the year

43.5

55.0

42.2

54.4

66.5

122.5

42.3

45.7

56.8

39.0

Profit for the year attributable to owners of
the parent

43.3

54.9

39.4

51.8

63.4

121.8

41.9

48.0

55.4

38.0

Comprehensive income for the year

114.2

16.5

36.8

53.8

79.5

96.2

70.9

90.8

96.9

–

〈Cash Flow Statement Items〉
Net cash from operating activities

76.0

95.6

75.9

149.6

103.7

102.8

73.1

117.6

(18.0)–Net cash from investing activities(18.8)(6.7)(28.6)

17.0

(7.9)

(27.6)(36.1)(28.8)(227.0)–Net cash from financing activities(59.7)(72.9)(35.4)(81.9)(79.2)(103.5)(55.9)(49.0)(245.0)–Free cash flow

61.3

81.2

81.7

136.7

85.1

68.2

36.4

88.7

(243.0)–1,053.8974.0

1,030.8

1,049.0

1,071.5

1,062.1

1,088.4

1,239.3

1,263.4

–

598.7

573.7

584.6

593.6

628.1

678.1

701.6

748.8

800.0

–

3.3

3.2

18.0

20.5

23.9

24.5

24.8

22.7

22.6

–

〈Financial Position Items〉
Total assets
Equity attributable to owners of the parent
Non-controlling interests

451.8

397.2

428.2

434.9

419.5

359.5

362.1

467.8

440.8

–

Return on equity attributable to owners of theparent (ROE) (%)

7.7

9.4

6.8

8.8

10.4

18.6

6.1

6.6

7.2

4.9

Return on sales ratio (%)

7.9

10.0

7.8

9.1

10.3

17.6

6.5

6.0

7.6

–

Leverage (times)

1.8

1.7

1.8

1.8

1.7

1.6

1.6

1.7

1.6

–

Total liabilities

Total assets turnover ratio (no. of times)

0.5

0.5

0.5

0.6

0.6

0.6

0.6

0.6

0.6

–

Ratio of equity attributable to owners of theparent (%)

56.8

58.9

56.7

56.6

58.6

63.8

64.5

60.4

63.3

–

Net debt equity ratio (Net DER) (times) ＊4

0.00(0.06)(0.11)(0.27)(0.32)(0.29)(0.27)(0.32)(0.21)–

Dividend on equity attributable to owners of
the parent (DOE) (%)＊5

7.6

7.3

7.4

7.3

7.0

7.0

6.6

6.3

5.9

5.9

Dividend payout ratio (DPR) (%)

99.0

78.0

109.0

82.8

67.8

37.6

109.3

95.7

82.8

–

151.57192.23137.63181.18221.34425.01146.95167.27193.31132.60

150

150

150

150

150

160

160

160

160

160

Earnings per share (basic) (EPS) (yen)Dividend per share (DPS) (yen)The figures for fiscal 2021 have been revised for retroactive application due to changes in accounting policies.
The Group’s business is comprised of pharmaceutical business and other business. The pharmaceutical business is organized into the following six reporting segments in this report: Japan, Americas (North America), China, EMEA (Europe, theMiddle East, Africa, Russia and Oceania), Asia and Latin America (primarily South Korea, Taiwan, India, ASEAN, Central and South America), and OTC and others (Japan). From fiscal 2022, Hong Kong was changed from Asia and Latin America
pharmaceutical business to China pharmaceutical business and income mainly from upfront payments and other factors received as consideration for license grants have been included in “Other business”. In addition, from fiscal 2023, theCompany reorganized of the Japan business, Consumer healthcare business will be integrated into the Japanese pharmaceuticals business. As a result, the forecast for fiscal 2023 incluedes the five business segments of Japan, Americas (North
America), China, EMEA (Europe, Middle East, Africa, Russia, Oceania), Asia/Latin America (Korea, Taiwan, India, ASEAN , Latin America, etc.).
＊1 The Company’s diagnostics subsidiary was transferred to Sekisui Chemical Co., Ltd. on December 28, 2015. ＊2 Generics business was transfered to Nichi-Iko Pharmaceutical Co., Ltd. on April 1, 2019. ＊3 Japan business for fiscal
2016-2018 includes Consumer healthcare business. The sales revenue of Consumer healthcare business for the relevant period and the fiscal 2023 forecast is provided as a reference value. ＊4 Net debt equity ratio (Net DER) = (Interestbearing debt (Bonds and borrowings) – Cash and cash equivalents – Time deposits exceeding three months, etc. – Investment securities held by the parent company＊6 ) / Equity attributable to owners of the parent ＊5 Dividend on equity
attributable to owners of the parent (DOE) = Dividend payout ratio (DPR) x Return on equity attributable to owners of the parent (ROE) ＊6 Investment securities held by the parent company are included in the formula used to calculate theliabilities ratio.

Eisai Value Creation Report 2023

90

Management Strategies

Status of Shares (As of March 31, 2023)

Realization of Social Goodin Three Areas

Materiality to Effectively Realize
Social Good

Data Section

Corporate Information (As of March 31, 2023)

Authorized (common stock)

1,100,000,000 shares

Corporate Name

Eisai Co., Ltd.

IssuedNumber of shareholders
Transfer agent

296,566,949 shares (including 9,667,799 shares of treasury stock)80,531
Mitsubishi UFJ Trust and Banking Corporation

Date Founded
Head Office Address
Paid-in Capital
Stock Exchange Listings

December 6, 1941
4-6-10, Koishikawa, Bunkyo-ku, Tokyo 112-8088, Japan¥44,986 million
Eisai common stock is listed on the Prime Market of the Tokyo Stock Exchange.
(Securities Code Number: 4523)
March 31
Held in June
Deloitte Touche Tohmatsu LLC

Principal shareholders＊Number of shares held Percentage of shares(in thousands)(%)

Shareholders

The Master Trust Bank of Japan, Ltd. (trust account)

55,397

19.31

Custody Bank of Japan, Ltd. (trust account)

36,175

12.61

State Street Bank and Trust Company 505001

20,512

7.15

Nippon Life Insurance Company

8,597

3.00

Saitama Resona Bank, Limited

5,300

1.85

State Street Bank West Client - Treaty 505234

4,606

1.61

GOLDMAN, SACHS & CO. REG

4,269

1.49

The Naito Foundation

4,212

1.47

MSCO CUSTOMER SECURITIES

3,968

1.38

JPMorgan Chase Bank 385781

3,480

1.21

＊1 Numbers of shares are rounded down to the nearest thousand.
2	The shareholding ratio is the percentage of the total number of shares issued(excluding treasury shares).
3	Treasury shares amounted to 9,667,000 shares (3.26% of the total number ofshares issued) and are not shown in the table because they have no voting rights.
4	The following large shareholding reports (change reports) were submitted by theend of the current fiscal year, but are not shown in the table if they cannot be
confirmed in the shareholders’ register as of the end of the current fiscal year, or if
the number of shares held does not fall into the top 10 shareholders. The holding
percentage enclosed in parentheses is the percentage of the total number of issued
shares including treasury stock (rounded down).
(1) 18,308,000 shares (6.17%) held jointly by 11 companies including BlackRock
Japan K.K. as of August 15, 2017 (Change report dated August 21, 2017)(2) 1 8,380,000 shares (6.20%) jointly held by 3 companies including Nomura
Securities Co., Ltd. as of July 15, 2020 (Change report dated July 21, 2020)(3) 14,945,000 shares (5.04%) held as Banks’ Shareholdings Purchase Corporation
as of September 15, 2020 (Large shareholding report dated September 23,
2020)(4) 19,442,000 shares (6.56%) held jointly by 3 companies including Sumitomo
Mitsui Trust Bank, Limited as of October 29, 2021 (Change report dated
November 5, 2021)(5) 20,752,000 shares (7.00%) held as Wellington Management Company, LLP as
of August 31, 2022 (Change report dated September 5, 2022)(6) 13,073,000 shares (4.41%) held jointly by 2 companies including Mitsubishi UFJ
Trust and Banking Corporation as of October 31, 2022 (Change report dated
November 8, 2022)

Trends in shareholder type ratio
0Date for Settlement of Accounts
Annual Shareholders’ Meeting
Independent Public Accountants

Major External Evaluations (As of July 2023)

（％）
20

40

60

80

100

Fiscal 2021

42.7

30.3

14.0

6.0

3.3

Fiscal 2022

40.3

33.3

13.9

5.9

3.3 3.3■ Financial institutions (Institutional investors, etc.)

3.7■ Foreign entities, etc. ■ Individuals, other ■ Other companies ■ Treasury stock ■ Financial instruments traders (securities companies)

In 2023, Eisai Co., Ltd. received a rating of AA (on a scale of AAACCC) in the MSCI ESG Ratings assessment.
THE USE BY Eisai Co., Ltd. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN,
DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF Eisai Co., Ltd. BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITSINFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.
THE INCLUSION OF Eisai Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Eisai Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCIAND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Eisai Co., Ltd. has been independently assessed according to the FTSE4Good criteria, and has
satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure theperformance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create andassess responsible investment funds and other products. https://www.ftserussell.com/products/indices/ftse4good

Stock price trends (from April 1, 2013 to March 31, 2023)＊
350

Eisai Co., Ltd. announces it has been included in the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed as anindustry neutral benchmark that reflects the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices in Japan. FTSE Russell evaluations are based on
performance in areas such as Corporate Governance, Health & Safety, Anti-Corruption and Climate Change. Businesses included in the FTSE Blossom Japan Index meet a variety of environmental,social and governance criteria.

ー Eisai’s stock price ー Average of pharmaceutical industry ー TOPIX300

FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Eisai Co., Ltd. has been independently assessed according to the FTSE4Good criteria, and has
satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed tomeasure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants tocreate and assess responsible investment funds and other products.

250

Independent Assurance Report
200

150

100

50

0

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

＊ The April 1, 2013, closing prices of Eisai’s stock price, average of pharmaceutical industry, and TOPIX respectively represent the 100 shown in the line graph.

※ Please refer to the Notice of Resolution of the 111th Ordinary General Meeting of Shareholders for the status of shares.

91

Eisai Value Creation Report 2023

※F or further details of the independent
assurance report, please refer to Eisai’s
Corporate Website.
https://www.eisai.com/sustainability/
esg_data/data/index.html

https://www.eisai.com/ir/stock/meeting/pdf/einv111_all.pdf
Eisai Value Creation Report 2023

92