Basic Policies for Sustainability
Sawai's approach to sustainability is based on the understanding that its business activities are its greatest contribution tosociety. Therefore, Sawai's mission is to contribute to society by realizing its Corporate Philosophy and acting according to its
Code of Conduct in all business operations.

Sawai's Approach to Sustainability
In order to realize sustainability, it is necessary for us to become indispensable
to society ("public organ of society") and to maintain a trusting relationship withall stakeholders including patients. Accordingly, the entire company is devoted torealizing its Corporate Philosophy in all its business activities. As Sawai
continues to grow, we are placing increased emphasis on essential sustainability
activities with the input of our stakeholders. By incorporating sustainability initiatives
into our business practices, we are positioned to help realize a sustainable society.

Overall Sustainability

Realization ofCorporate Philosophy
Fulfillment of Sustainability
through Business
Activities
Putting Code of
Conduct into Action
Sustainability within Business Processes

1Corporate Philosophy

Sawai's Corporate Philosophy lays the blueprint for how we hope to contribute to the world.

Always Putting Patients First
1. It is Sawai’s mission to enable people to live healthy lives through pharmaceutical products imbued with ourwhole-hearted dedication.
2. It is Sawai’s challenge to grow in tandem with society through innovation and cooperation, while pursuing creativity.
3. It is Sawai’s hope that we will become an indispensable part of society through our desire to be of service.

2

Sustainability Through Our Business Activities

Sawai's most important sustainability commitment is to achieve its corporate philosophy of Always Putting Patients First in all its
business activities and to play a role in the realization of a sustainable society (sustainability through business activities).

1. Reducing Patient Burden and Improving Convenience
By providing low-cost, high-quality generic drugs to patients in need of medical care, we help reduce their financial burden, giving
them peace of mind so they can focus more on successful treatment. In addition, we aim to fulfill our Corporate Philosophy ofAlways Putting Patients First, including by developing orally disintegrating (OD) tablets that can be taken without water and othervalue-added drugs that make it easier for patients to take their medications.

12. Helping sustain and develop a superior healthcare system compatible with sound government finances.
Since introducing universal health insurance coverage after World War II, Japan has maintained an outstanding healthcare system
in which all citizens are entiled to receive medical treatment. However, as goverment finances become an increasingly pressing
issue and Japanese society continues to age, we face the urgent issue of reviewing the current medical system to make it morecompatible with government finances. Out of these circumstances, Sawai has led the way in promoring the understanding, use andreliabiluty of genefic drugs. As a leading company in Japan’ s generic drug industry, Sawai will continue contributing to the continuation and improvement of Japan’s medical care system.

3. Sustainability and Code of Conduct in Sawai's Business Processes
In realizing our Corporate Philosophy, we established the Sawai Code of Conduct, which provides our answer to the question, “Whatactions should we take to be of service to our stakeholders?” In our business activities, Sawai maintains mutually inrteractibe relationships with various stakeholder groups representing our customers, employees, business partners, shareholders, local communities and even the global enviroment. For Sawai to continue operations, each and every employee must fulfill their specific responsibilities. For this reason, Sawai has established a Code of Conduct to provide clear criteria for all employees to follow. We will
endeavor to act in accordance with this code of conduct.

4. Sawai’s Infrastructure for Promoting Sustainability Activities
Sawai Pharmacetical’s business activites require the provision of respurces from various stakeholders society, including customers,
business partners, employees, shareholders, and local communities, and in order for the Group to achieve sustainable growth andincrease its corporate value, society as a whole, which is embracing the stakeholders, must be sustainable. Therefore, we believethat we must fulfill its corporate social responsibility, actively and proactively work to solve various social issues, and play an activerole in realizing the Sustainable Development Goals (SDGs). To this end, we have established the Sustainability Committee to promote initiatives related to sustainability.

Sustainability Committee

Promotion TeamThe Committee is chaired by the President andRepresentative Director of Sawai Pharmaceutical.
The Committee members consist of themembers appointed by the chairman from themanagement level of relevant departments, andthe meeting is held quarterly in principle.

Two teams were established as a subordinate
organization of the Committee to carry out
practical initiatives; they consist ofEnvironment and Society.
In addition, as a core company of Sawai
Group, we have a large number of employees
participate in the promotion teams.
The duties of the Teams are as follows.

Twice a year of these meetings are held inconjunction with the Group Sustanability
Committee of Sawai Group Holdings to promote
cooperation among the Group.
The Committee is responsible for the following
matters:
1. To establish and develop a structure forpromoting sustainability
2. To establish and approve on annual actionplans based on the Sawai Group’s basic policy onsustainability, and review of progress and resultsof annual activities

1. To formulate an annual activity plan basedon the Sawai Group’s basic policy onsustainability, and report the progress andresults of the annual activities to theCommittee.
2. Investigating, reviewing, and reporting on
matters related to sustainability consulted bythe Committee
3. Other matters necessary for the promotionof sustainability

3. To receive reports or proposals from theSustainability Promotion Team(hereinafterreferred to as the “PromotionTeam”) or thesecretariat, and to deliberate and approve suchreports or proposals
4. Making decisions on other matters necessary
for the promotion of sustainability

2Secretariat
It is composed of members from related
divisions and has the following duties:
1. Assisting the Committee by convening
meetings and preoparing minutes.
2. Dissemination of information onsustainability internally and externally,including preparation of website on
sustainability
3. Supporting the Promotion Teams

Important Sustainability Matters and the Process for Identifying Them
Sawais business activities are informed by its relationships with all its stakeholders, including customers, employees, business
partners, shareholders, investors, local communities, and the global enviroment.
To respond to their varying needs, Sawai prepared a new Basic CSR Policy (now Basic Policies for Sustainability) in May 2015.
Based on this policy, Sawai has defined important matters that inform its sustainability activities and established objactives basedon two pillars: “benefits for society as a whole” and “benefits due to linking up with Sawai’s business activities.”

Importance to stakeholders

Identification of Materiality
Respect for human rights

Enhancing access to medical treatment

Contributing to reduction in healthcare costs

Supply chain management

Development of high-value-added pharmaceuticals products

Product quality and safety

Maintaining stable supply

Human talent cultivation and retention

Corruption prevention

Stakeholder satisfaction with the provision and disclosure of information

Compliance

Diversity promotion

Maintenance of a safe, healthy workplace environment

Fair, transparent transactions

Greenhouse gas emissions reduction
Recycling and waste control

Governance enhancement

Stakeholder engagement

Water use reduction

Information management

Realization of work-life balance

Biodiversity

Importance to Sawai3