Saving Your Health
Doing whatever we canGood fortune so natural that we almost overlook it.
Our health.
All over the world, this good fortune is under threat from a variety of issues.
Developing countries in which lives that could be saved are lost due to delays inrolling out medical infrastructure.
Developed countries in which rising medical expenses put public finances undercontinuous pressure.
As we move into the future, “the maintenance of health” will not be a simple matter.
In a time of such limited visibility into what lies ahead, what can we do to help?
As a global clinical diagnostics company we will reach for the possibilities that await
us, racing into the future without pausing in our diligent research, without shrinking
from difficulties, and without abandoning our quest.
We do this for those, somewhere in the world, who need us.

EIKEN CHEMICAL Integrated Report 2023

2

Tests cannot cure disease.
However, they can protect lifeand preserve smiling faces
Since the foundation in 1939, 84 years have passed.
As a pioneering clinical diagnostics company, we have not wavered in our
determination to contribute to people’s health and medical treatment since
we first entered the field of public health.
Globally, cancer deprives nearly 10 million people of their lives every year.
Eiken Chemical has the top share in fecal immunochemical test (FIT) reagents forthe early detection of colorectal cancer both in Japan and overseas.
Colorectal cancer screening programs have been introduced in many countries,
and we continue to move forward with our mission of minimizing the number of
those suffering from this disease and the number of sorrowing families.
Examinations cannot cure disease.
Nevertheless, by enabling early detection, broadening possibilities for treatment,
and contributing to options tailored for each individual, it can reduce suffering.
Through our technology, we hope to save the lives and keep smiles on the facesof as many people as possible.
That is our prayer.

Number of opportunities provided for early detection of colorectal cancer*Number of times our colorectal cancer screening test has been provided (April 2022-March 2023),
inferred from cumulative sales

90,491,380
90 491 380
EIKEN CHEMICAL Integrated Report 2023

3

We will never stop walking into the future
for as long as there are lives to save
Science and technology have advanced to the point where our day-to-day
lives are supported by AI, and the entire world is connected by the internet.
Even so, humankind is still afraid of the unknown.
Novel coronavirus disease assailed the world with shocking speed.
Instability with no end in sight, and the despair of losing loved ones.
When the world gripped by a sense of helplessness, we fought alongside
medical professionals without giving up.
The genetic testing “LAMP” developed by Eiken Chemical produces results
more simply and in a shorter time, and having been adopted by many
medical sites it contributes to preventing the spread of infectious diseases.
Leveraging the LAMP method, we confront infectious diseases that are
rampant in developing countries with the goal of saving the many lives that,even at this instant, are on the verge of being lost.
There is no end to the fight against infectious disease, for as long as there
are lives for our research and technology to save somewhere in the world.

Number of people who could be saved by our products from infectious disease in 2030

*LAMP products materiality KPI population of countries in which deployed

2,700,000,000
2700 000 000

peopleEIKEN CHEMICAL Integrated Report 2023

4

At a Glance
The Eiken Group in FY ended Mar. 31, 2023

Net sales

Net profit

R&D expenses

43,271 million yen 4,065 million yen

ROE5,736 million yen 12.1%(full-time employees + temporary employees)

Number of employees

Number of
R&D personnel

Overseas sales
as share of total

Number of countries
in which products deployed

1,106

191

20.6%

49

CO₂ emissions(Scope 1 + 2)

Water volume consumed(all production sites)

4,614t-CO₂ 73,100 m³

Change in major financial indicators over time
Net sales(million yen)
45,00042,996

Operating profit
43,27142,00039,000(million yen)(million yen)

10,00010,000
7,457

6,612

6,218
6,000

36,000

4,000

4,000

33,000

2,000

2,000

FY endedMar. 31, 2021

FY endedMar. 31, 2022

FY endedMar. 31, 2023

(%)
16

8,000

6,000

30,000

ROE
14.3

8,387
8,000

38,667

Net profit

0

FY endedMar. 31, 2021

FY endedMar. 31, 2022

FY endedMar. 31, 2023

0

5,044

12
5,736

12.9

12.1

8
4

FY endedMar. 31, 2021

FY endedMar. 31, 2022

FY endedMar. 31, 2023

0

FY endedMar. 31, 2021

FY endedMar. 31, 2022

FY endedMar. 31, 2023

EIKEN CHEMICAL Integrated Report 2023

5

Putting Management Philosophy into PracticeFIT

For the Protection of People’s Health

Colorectal cancer is a common disease with an incidence rate of approximately 20% worldwide*1. On the other hand, it progresses relatively slowly and, if detected early, acomplete recovery can be realistically hoped for. This is exactly why colorectal cancer screening that leads to early detection has such social significance.
Eiken Chemical launched fecal immunochemical test (FIT) reagents in 1987, and introduced the world’s first fully-automated fecal occult blood analyzer in 1989. This simple
and inexpensive test scratches the surface of the stool to obtain a sample, and a research*2 reports that repeated testing reduces the risk of colorectal cancer mortality by 60%,
which provides scientific evidence of its effectiveness. FIT also appears*3 in guidelines for colorectal cancer screening published by various countries, and our products have been
adopted for colorectal cancer screening programs in 44 countries around the world.
We have maintained a high market share because we entered the market early, and because we routinely develop products tailored to the needs of users based on the data wehave accumulated.

FIT Screening Protocol

ExamineenotifiedDiagnosis andtreatment

StoolsampleSampleprovidedExamination conductedby examining body

Number of countries
in which deployed

44

Colonoscopy

Domestic
share

67%

*4

Result sent
If result is
positive

Structural factor of the FIT market expansion• Accelerating the spread of FIT, a non-contact screening, becauseof the COVID-19 pandemic• Lack of testing capacity with shortage of endoscopists
FIT utilization for endoscopy triage• Recognition expansion of cost effective of FIT (listed in nationalguidelines, paper publication)
Acceleration of switching from chemical to immunochemical
procedures
Increase in the number of patients by lowering the age for
consultation (US, UK, etc.)

Strategy• Improvement of screening uptake rates, dissemination of
medical examinations
Improvement of access to screening
Development of next generation FIT• Improved inspection accuracy
Increased value added
Development of highly accurate medical laboratory
technology

Outcomes• Reduced risk of death from colorectal cancer• Reduction of medical cost burden through early detection• Improvement of quality of life
• Extension of healthy life expectancy• Winning screening contracts in new countries and facilities• Dissemination of medical examinations in developing countries*1 World Health Organization (WHO) website*2 Colorectal Cancer Guidelines Based on Effectiveness Assessments (FY2004 Ministry of Health, Labour and Welfare Cancer Grant, “Research on Establishing Appropriate Methods for Cancer Screening and Evaluating Their Effectiveness”)*3 Guidelines, etc. of various countries https://www.eiken.co.jp/en/publication/fit/*4 FUJI KEIZAIEIKEN CHEMICAL

Integrated Report 2023

6

Putting Management Philosophy into Practice

LAMP

Preparing for the Next Pandemic

SARS (Severe Acute Respiratory Syndrome) in 2003, H1N1 influenza in 2009, and the novel coronavirus (COVID-19) pandemic in 2020. In accordance with its mission ofprotecting the health of people worldwide, Eiken Chemical has provided test reagents for a variety of infectious diseases as they have appeared, and has worked alongside
medical professionals to do everything it can to bring such phenomena to a resolution. The rapid and simply implemented LAMP method that it developed in-house in 1999 has
contributed to the fight against these diseases. By leveraging the special features of this method, we help combat tuberculosis and malaria, which are two of the world’s “bigthree” infectious diseases.
There are global concerns that, due to the impact of climate change, the number of zoonotic diseases will increase and the area over which they are prevalent will change, so
preparing for the next pandemic is a pressing issue. As a pioneering clinical diagnostics company, going forward we will put in place structures within the Company to enable us
to help prevent the spread of these new infectious diseases at an early stage.

Special features of the LAMP method

Flow of genetic testing using the LAMP method

Rapid

Obtain sample

Process sample

Genetic testing
using LAMP method

PreciseResults

SimpleLAMP (Loop-mediated Isothermal Amplification)
is a genetic amplification method developed
in-house by Eiken Chemical. Because nucleic acids
are amplified isothermally, genes are detected
rapidly. This technology has been well-received allover the world, and in addition to its use in clinicaldiagnosis for tuberculosis, malaria, and neglected
tropical diseases (NTDs), we sell various types ofreagent and test equipment into a wide rangeof fields, including food hygiene, environmental,
livestock, and plants.

Results confirmed within one hour

Structural factor of the LAMP market expansion• Population of countries in which tuberculosis is prevalent: 3.7 billion• Increase in number of malaria sufferers: 30 million (2020-2021)• Promotion/continuation of malaria eradication activities• Population at risk of infection from NTDs: 1.7 billion• Existence of “compounds” where medical care systems are not well developed• Recommended by WHO• Global rise in awareness of genetic testing as a result of the COVID-19 pandemic

Strategy• Assist in eradication of tuberculosis, malaria, NTDs
Advocate/educate for wider use of diagnostic reagents indeveloping countries
Enhance efficiency to reduce prices and speed up production• Respond to various infectious diseases
Develop test reagents for new infectious diseases early on
Build structures for monitoring spread of infectious diseases
Strengthen systems for joint development with externalorganizations

Outcomes• Reduction in infectious disease patients• Extension/maintenance of public health• Prevention of pandemics before they occur• Enhanced access to medical treatment• Enhanced health at the global level• Contribution to universal health coverage• Help achieve 100 Days Mission*

Strengthen internal development structure*The 100 Days Mission is an international initiative that aims at practical implementation of medical countermeasures (MCM) such as the rapid approval of diagnostic agents, safe and effective vaccines, and therapeutics within 100 days of the announcement by the
WHO of a public health emergency of international concern in relation to new infectious diseases. The goal of the 100 Days Mission is to not only develop and obtain approval for diagnostic agents, vaccines, and therapeutics within 100 days, but also to guarantee
access to MCM for all, including low-income countries, and to aim for equitable supply around the world.

EIKEN CHEMICAL Integrated Report 2023

7

Table of contents

Section01

Value Creation Story

Section02

SectionOur Strategy

03

Corporate Governance

Section04

Our Profile

02

Introduction

18

Long-Term Vision & Medium-Term Management Plan

47

Basic Policy on Corporate Governance58

Eiken Chemical’s Businesses05

At a Glance20

Sustainability

48

59

Main Products and Services

06

Putting Management Philosophy
into Practice21

Business Environment and Strategy

Approach to Composition of Board of
Directors/Diversity of Skills

Financial Highlights

Interview with Director

49

61

Non-Financial Highlights

25

Medium-Term Management Plan
Key Field 1 Cancer

Evaluation of the Effectiveness of
the Board of Directors

60

22

50

Executive Remuneration

62

26

Medium-Term Management Plan
Key Field 2 Infectious Diseases

51

Compliance/Risk Management

External Evaluation/
Stock Information, Etc.

53

Executives (Directors, Executive Officers)

27

Medium-Term Management Plan
Key Field 3 Healthcare

54

Message from Outside Directors

28

Growth Strategy 1: Global Strategy

30

Growth Strategy 2: Research & Development

34

Growth Strategy 3: IT/Digital Strategy

36

Pursuing Quality

37

Growth Strategy 4: Business Activities in Harmony
with the Global Environment

39

Growth Strategy 5: Human Capital Strategy

43

Value Chain Management

44

Growth Strategy 6: Financial Strategy

08

Table of Contents/Editorial Policy, Etc.

09

Management Philosophy/EIKEN WAY

10Value Provided to Stakeholders

11

Message from CEO

15

Eiken Chemical’s Value Creation Process

16Management Resources (Capital)

Editorial Policy

Disclaimer Regarding Forward-Looking Statements

Period of the Report

The Eiken Group has prepared the Integrated Report as a tool for communicating withstakeholders.
During the course of editing this Report, the editors referred to documents such as the
IIRC’s “International Integrated Reporting Framework” and the Ministry of Economy,
Trade and Industry’s “Guidance for Collaborative Value Creation.” It is hoped that it will
facilitate understanding of what kind of value Eiken Chemical has provided in the past,
and what kind of value it seeks to provide in the future.

Forward-looking statements, etc. contained in this Report represent the
judgments of the Company based on information available at the time it was
published, and actual performance going forward may differ from forecasts
for a variety of reasons.

FY2022 (April 1, 2022-March 31, 2023)*Includes reports on some events occurring on or after
April 1, 2023

Scope of the Report
EIKEN CHEMICAL CO., LTD. and its Group companies

EIKEN CHEMICAL Integrated Report 2023

8

EIKEN WAY

Our Management Philosophy

Protect the health of the publicthrough health care services.
Based on this management philosophy,
we contribute to society through the provision of products andservices that protect the health and lives of people around the world.

Our Management Vision

Eiken Group is dedicated to leveraging
expertise as a medical testing pioneer in order
to increase corporate value by protecting
the health of the public with products andservices that customers can trust.

Our Motto

We EIKEN provide trustworthy quality,and develop with technology.

Customers(people to be tested)
We provide products and services
enabling anyone to be tested
with confidence anywhere, and at
any time.

Shareholders and Investors
We strengthen risk managementand ESG efforts and will aim to
improve our corporate value.
We make disclosures and willcommunicate responsibly.

Customers(medical workers who perform testing)Management
Philosophy
Management
VisionMotto

Suppliers/
Supply destinations/
Partners

Employees
We create a working environmentthat respects the diversity of
employees and demonstrates
their individuality and abilities.
We provide our employees with aplace for them to be creative andthat will challenge them.

We create and dependably supply
outstanding products and services
that earn customer trust.

Society

Together, we aim to improve ourcorporate value by providing
products and services that protect
people’s health.

We respect human rights andconduct our business withintegrity and responsibility basedon high ethical standards. We
are committed to preserving the
global environment.

EIKEN CHEMICAL Integrated Report 2023

9

INDEX

Value Creation Story

Our Strategy

Corporate Governance

Our Profile

Value Provided to Stakeholders
Stakeholder

Customers(people to be tested)

Customers(medical workers who perform testing)

Suppliers/
Supply destinations/
Partners

Society

Employees

Shareholders and Investors

Value provided

Our activities• Reduction in mortality rates due to early detection of cancer• Extensions in healthy life expectancy• Reduction in psychological burden due to shorter
examination time• Improvement of screening uptake rates through cancer screening educational activities• Contribution to early detection by improving the accuracy and speed of testing• Pursuit of convenience through enhanced usability• Streamlining of examination structures and enhanced
productivity• Reductions in examination room space due to compact
equipment capable of multiple tests• Provision of academic information• Increasing test accuracy and speed through research & development• Providing accuracy management services for all testing systems• Providing various types of product• Participating in academic conferences and hold study meetings for the provision ofacademic information• Stable supply that meets demand• Coexistence and mutual prosperity based on impartial andfair dealings• Provision of eco-friendly products• Provision of energy-saving equipment• Maintaining structures for supplying products• Engaging in fair and free competition and execute appropriate transactions• Conducting due diligence in the value chain based on CSR self-assessment• Development of eco-friendly products• Development of energy-saving equipment• Eradication of infectious diseases• Reduction of medical cost burden• Maintenance and enhancement of public health• Measures to address climate change• Conservation of biodiversity• Providing high-quality medical information through the Modern Media academic journal• Preventing spread of infectious diseases and control high medical expenses throughearly detection• Reduction of greenhouse gas emissions by improving production efficiency and making
use of natural energy• Utilizing sustainable resources and develop eco-friendly products• Mitigation of environmental impact by reducing waste• Sense of satisfaction and rewarding work
• Physical and mental health/safety• Maintaining fair personnel evaluation and compensation structure• Providing venues for creativity and the acceptance of challenges• Implementation of monitoring and improvement activities based on questionnaire
surveys of employee satisfaction• Providing a safe and comfortable working environment• Improvements in financial/non-financial indicators over thelong term derived from continuous value creation• Driving long-term enhancements in corporate value by strengthening ESG initiatives• Disclosure of information in a timely, appropriate, and responsible manner• Maximization of returns through improvements in ROE• Communication with investors (financial results briefings, one-on-one meetings, etc.)

EIKEN CHEMICAL Integrated Report 2023

10

INDEX

Value Creation Story

Our Strategy

Corporate Governance

Our Profile

Message from CEO

Eiken Chemical has never refused
the challenge of new issues in
the field of medicine
Focusing on the future, my mission
is to build the foundations of anorganization that will drive the further
evolution of our corporate culture
Tsugunori Notomi

President & CEO

1

Eiken Chemical has consistently taken on
the challenge of confronting the issues facedby the medical industry

3Management strategy for responding to changes in the environment
The management framework “EIKEN ROAD MAP 2030”
and Medium-Term Management Plan

2

The role Eiken Chemical should play andthe issues it should resolve

4

Working to build the foundations of the Eiken Chemical of the future

EIKEN CHEMICAL Integrated Report 2023

11

INDEX

Value Creation Story

Our Strategy

Corporate Governance

Our Profile

Message from CEO

We have never wavered in our obedience to the precepts of the management philosophy
Our history of taking on challenges has resulted in a stronger business and organization1

 iken Chemical has consistently takenEon the challenge of confronting theissues faced by the medical industry

The history of Eiken Chemical is a history ofnever refusing to accept the challenge of newissues in the field of medicine.
The Company launched its business with the
manufacture and sale of medical products andnutritional food that used livestock organs
as its raw ingredients 84 years ago. Having
come through the chaotic period of the war
and the years that followed, we leveraged
the technology and know-how that we had
accumulated, and found our way to the saleand manufacture of culture media used for
growing microorganisms and biological tissue.
The culture media for testing bacteria that welaunched in 1950, at a time when infectious
diseases such as dysentery and typhoid wereprevalent, made a significant contribution to
the prevention of epidemics and to the spread

Powdered agar for thedetection of bacteria
SS Agar “Eiken”
1950Detects salmonella anddysentery bacteria.
This product was thecatalyst for our entry
into the clinical testing
industry.

and development of public health in Japan at
the time. Up until that point the preparationof prescriptions for culture media had been
the work of physicians, but through repeateddiscussions with doctors we achieved the firstcommercialization of the product in Japan,
freeing medical professionals from an onerous
and time-consuming task.
Seizing the opportunity conferred by thissuccess, we launched a series of products that
fulfilled valuable roles in laboratory testing.
In 1958 we launched reagents for testing
sensitivity to bacterial drugs, and in 1963 welaunched Japan’s first urinalysis test strips.
These were followed in 1975 by the release of
antigen testing reagents using radioisotopes,
such as those related to radioimmunoassays,
and in 1987 by the launch of low osmoticpressure contrast media for pharmaceuticals
used in internal examinations. Because theuse of vascular contrast media involves theintroduction of reagents into the body,in vivo diagnostic
contrast media
Hexabrix 320
1987-2005
This marked our entry
into the field of internal
diagnostic medicine,which required a level ofmanagement equivalent
to that of therapeutic
agents.

this had a significantly higher risk thanthe products used for laboratory testingthat we had developed hitherto, but weresolutely took on this challenge. It is throughcontinuously taking on such challenges
that Eiken Chemical followed the route to
becoming the comprehensive manufacturerof clinical diagnostics and devices that it istoday.
Our management philosophy includes thewords “Protect the health of the publicthrough health care services,” and over the 84
years since the foundation, we have not once
wavered from obedience to this idea. I feelthat our employees hold the management
philosophy close to their hearts and have astrong sense of their mission as they take onsuch challenges, and that this has led to anemphasis on quality and a keen awarenessof ethics, enabling us to foster a culture of
rigorous examination right from the startwhen conducting clinical evaluations.
Even today, the Company continues to takeon these challenges. The development ofreagents and devices to further expand
the fecal occult blood testing system that iscurrently our main product, of test reagentsand devices using the LAMP* method, andof testing systems that address the demandfor personalized medicine, are all clear
expressions of the approach of tackling the
problems faced by the field of medicine with
an awareness of our mission, which has been
passed down unbroken from generation
to generation since the founding of theCompany.

*An abbreviation of Loop-mediated Isothermal Amplification.
A quick, simple, and accurate genetic amplification method developed in-house by the Company.

Real-time turbidimeter
for LAMP
LoopampEXIA
2009-

Fully-automatedfecal occult blood
analyzer
OC-SENSOR Ceres
2022-

Currently available
detection device thatuses the LAMP method.

Currently available
fecal occult blood
analyzer.

EIKEN CHEMICAL Integrated Report 2023

12

INDEX

Value Creation Story

Our Strategy

Corporate Governance

Our Profile

Message from CEO

We will respond to changes in the business environment
in which medical professionals operate
We will address the needs of clinics, remote medicine, andmedicine in isolated locations, as well as those of major hospitals

2

The role Eiken Chemical should play
and the issues it should resolve

The environment in which medical
professionals operate is undergoingsignificant change. In Japan in particular, theacceleration of the declining birthrate and theaging of society are leading to considerable
changes in what is being required from healthcare. In order to respond to new medical
needs, medical institutions are increasingly
turning to division of roles and collaboration.
It used to be that a patient could go to any
hospital and expect to receive a certain levelof medical service, but we are shifting towards
a division of labor under which day-to-day
issues are the responsibility of primary caredoctors, and specialist treatments are theresponsibility of major or specialist hospitals.
Previously our business had, if anything,
been focused on providing test equipment
and reagents to the kind of major hospitals
that operate a testing department. Basedon the progressive shift to division of labor
between medical institutions, I think we needto concentrate even more on the business ofproviding reagents that even a primary caredoctor in a clinic can easily use, in addition to
the business of supplying to major hospitals.

Also, during the recent COVID-19 pandemic
there was an acceleration of the need forremote treatment, and there has been rapid
progress in deregulation. In addition, there
is demand for clinical diagnostics that can beused on site, such as when a doctor visits apatient in an isolated location. Going forward
we will forge ahead with developmentthat will actively address the need for suchdiagnostics.
On the other hand, we will also expand our
lineup of products and services for major
hospitals. As the digital transformationof medical institutions proceeds, we are
beginning to see such institutions requirethat the devices and reagents that we provide
can be connected to their systems. We do
not maintain an internal device development
function and so the development itself is
outsourced to medical device manufacturers,
but we are nurturing internal humanresources who have the understanding andknow-how to engage with the design as
deeply as the responsible persons at the
medical device manufacturers. This point is
extraordinarily important, and we intend toconcentrate on this going forward in order tonurture human resources who can deal withthe shift to AI.

3 anagement strategy for respondingM
to changes in the environment
The management framework “EIKENROAD MAP 2030” and Medium-Term
Management Plan

It was in order to respond effectively tochanges in the business environment that
we announced the management framework“EIKEN ROAD MAP 2030” in April 2022.
Under this framework, while retaining thecurrent business areas as the core operations,
we designated three key business fields toaddress. These are contribution to cancer
prevention and treatment, contribution toeradication and control of infectious diseases,
and provision of products and services
useful for health care. In the field of cancer,
we intend to expand products and services

that are more directly related to treatment,
whereas in the area of infectious diseases
we are seeking to establish simpler test
technology, while in healthcare we plan toexpand products and services that address
remote treatment and testing at home.
We will also take steps to reform thecorporate culture. In order for the Company
to inspire innovation in medical processes
going forward that builds the future of
testing, we aim to energize the skillset of eachand every employee so that all employees
can broaden their domain of activity, and to
give rise to fresh possibilities by gathering
those individuals with their capabilities andtaking them beyond their respective domains
to take on challenges as a team. This is theidea incorporated into the slogan “Beyond
the Field – Team × Challenge –.” In terms

EIKEN CHEMICAL Integrated Report 2023

13

INDEX

Value Creation Story

Our Strategy

Corporate Governance

Our Profile

Message from CEOof initiatives to help achieve a sustainable
society, we have identified 11 materialities(key issues), and have included these in ouraction plan.
The Medium-Term Management Plan that
concludes in FY ending Mar. 31, 2025 is
the first such plan aimed at achieving the
EIKEN ROAD MAP 2030. Specifically, we
have designated and are implementing key

measures for each of the three key businessfields in order to address the accelerating
paradigm shift in healthcare. Furthermore,with the objective of establishing amanagement platform for sustainablegrowth, we are promoting human capital,
structural reform, IT, financial, and governancestrategies.

The management framework “EIKEN ROAD MAP 2030”

Beyond the Field – Team × Challenge –Business strategy

Management strategy

01

02

03

04

05

Contribution tocancer prevention
and treatment

Contribution
to eradicationand control of
infectious diseases

Provision of
products andservices useful for
health careBusiness activities
in harmony
with the global
environment

A vibrant
corporation
making use of
employee’s talentManagement
Philosophy

Business
Environment

Sustainability
Management

My mission as President is to build the foundations ofan organization of the future that will resolve medical issues globally4 orking to build the foundations ofW
the Eiken Chemical of the future

Eiken Chemical has improved the quality ofits business activities over time in accordancewith its corporate culture of taking onchallenges, and by transitioning to become
a company with nominating and othercommittees it has also concentrated onenhancing the governance system under its
philosophy EIKEN WAY. It is through such
efforts that today we have grown to become
a company that is trusted by a variety of
stakeholders, including investors, but there
is still a mountain of issues that needs tobe resolved in preparation for realizing themanagement philosophy and achieving
continuous growth going forward. In addition
to expanding sales of our fecal occult blood
testing system, mainly in developed countries,
the Company is also working in cooperation
with various NGOs, governments, andhealth authorities to establish and promote
more widespread use of our genetic testing
systems, with the objective of eradicating
infectious diseases such as tuberculosis andmalaria in developing countries. However,rather than resting on our laurels, we intend
to contribute to the realization of universal
health coverage (UHC) by promoting the
spread of fecal occult blood testing indeveloping as well as other countries, withthe goal of ensuring that not a single person
is left behind for medical treatment, andworking on initiatives to achieve further
improvements.
As for the reform of the corporate culturethat is currently underway, I consider this tobe my most important mission as President.
In this era of uncertainty, we must respondwith flexibility at all times, rather thansticking stubbornly to the plan as it was
first drawn up. To fulfill my responsibilities
as President, I will move steadily forward to
lay the foundations of the organization bystreamlining management systems, building
horizontal links between compartmentalizedorganizations, strengthening team activities,
establishing a workplace environment thatenables those in charge of development
to focus solely on development, and otherinitiatives. In order to achieve sustainablegrowth, we will strive for a proper balance
between making distinctive contributions
to medical care based on our management
philosophy, promoting globalization andgenerating a certain level of profits, andreturning those profits to stakeholders.
I encourage you to expect great things ofEiken Chemical as we take up the challengesof the future.

EIKEN CHEMICAL Integrated Report 2023

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INDEX

Value Creation Story

Our Strategy

Corporate Governance

Our Profile

Eiken Chemical’s Value Creation Process
As a pioneer in testing, since the foundation we have provided products and services that are trusted by our customers. While valuing those things that are possible
only because we are a comprehensive manufacturer, we will continue to protect people’s health as we prepare for 2030 and the future that lies beyond.

Contribution to cancer prevention and treatment
Contribution to eradication and control of infectious diseases
Provision of products and services useful for health care

Human Capital
Strategy

Busi

Structural Reform

IT Strategy

Financial Strategy

Medium-Term
ManagementPlanness Model

Sales
Marketing

OutputManufacturing

Inp uts

Research &Development

EIKEN WAY

Contribution to cancer prevention and treatment

Build the future of testingfor the health ofpeople worldwide anda sustainable society
Redress global disparities in health care

Contribution to eradication and control of infectious diseases
Provision of products and services useful for health care

Establish simpler test technology for infectious diseases

Business activities in harmony with the global environment(types of capital)
P16

Our goals for the future

EIKEN Vision
2030

P19

P16

Comprehensive
manufacturer ofclinical diagnostics

Governance

A vibrant corporation making use of employee’s talent
Procurement

P18

Materialities
P20

Contributing tohealth and qualityof life for people
around the world

Business activities
in harmony
with the global
environment

A vibrant
corporation
making use of
employee’s talent

Enhanced personal care, such as
remote clinical system and at-home self-testing
Improve quality of life by enhancing personal care
Reduce workloads on the medical front line andcontrol medical expenses through enhanced testing
Achieve carbon neutrality

An organizationalbase that supports
sustainable growth

EIKEN CHEMICAL Integrated Report 2023

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INDEX

Value Creation Story

Our Strategy

Corporate Governance

Our Profile

Management Resources (Capital)
The six types of capital are the driving force behind value creation, and are the indicators we use for EIKEN VISION 2030 and creating the future beyond that.
FY ended Mar. 31, 2023

Financial Capital

Human CapitalIntellectual CapitalSocial Capital

Manufacturing
CapitalNature Capital

An organizational base that
supports sustainable growth

Growth driver for
the Group as a whole

Research and development thatbuilds the future of testing

Partnerships rooted in
the management philosophy

Stable supply ofhigh-quality products

Mitigating environmental
impacts as “the last generation”

I np u t
Total assets:¥66,275 million
Net assets:¥49,535 million

 umber of employeesN(full-time employees +temporary employees):
1,106P roportion of R&D employees:
17.3%

 ystematic HR development
S
program

Consolidated R&D network

R&D expenses:¥4,065 million

EIKEN WAY
Number of surveys implemented:
10
 umber of inquiries received:N
1,044

Manufacturing locations:3

Energy consumed:
133,345 GJ

Capital expenditures:¥3,792 million

Water volume consumed:
73,100 m3U se of Tochigi Furusato Electricity:
6,774 MWh (55.8% of total) umber of IR events held:N102

 ersonnel evaluation programP
aimed at talent acquisition ooperation on information
Cwith WHO and otherinternational organizations
 onduct of due diligence inCvalue chain
 artnerships with a variety ofPexternal research institutions

O ut pu t
ROE:
12.1%
Operating cash flow:¥7,575 million

 otal actual work hours per
Tfull-time employee per year:
1,875Number of patents held:836

 umber of countries inNwhich products deployed:49

Number of products:
1,836

 O2 emissions per employee:C
4.17 t mployee satisfaction score:E
58.4

 etworks with hospitalsNand clinics

 ater volume consumed perWemployee:
66 m3

 ercentage of managerialP
positions held by women:
13.8%

A ppropriate relationships withshareholders and investors

Solar power generated:
97,624 kWh (0.8% of total) arket share in fecal occult
M
blood reagents:
67% (Japan)
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