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May 27, 2024

The 7th Five-Year Medium-Term Management Plan"For Global Growth Beyond the Cliff”
Kyoto, Japan, May 27, 2024 – Nippon Shinyaku Co., Ltd. (Nippon Shinyaku; Headquarters,Kyoto; President, Toru Nakai) announced that the outline of the 7th Five-Year Medium-TermManagement Plan "For Global Growth Beyond the Cliff" (FY2024 to FY2028), which wasstarted in April, 2024.
In a drastically changing environment, we have been promoting our business activities basedon our corporate philosophy of "Helping People Lead Healthier, Happier Lives." During the 6th
Five-Year Medium-Term Management Plan “Aiming for Sustainable Growth - Pursuit ofFurther Originality -“ which started in FY2019, we had been taking on challenge of the six
actions such as R&D, promotion of global business, etc., to be “a company playing ameaningful role in the global healthcare sector.”
As a result, in the pharmaceutical segment, although we did not achieve management targets
due to the annual price revision by Ministry of Health, Labour and Welfare (MHLW) of Japanand the COVID-19 pandemic, we established a foundation for global expansion throughworking on our own marketing in the U.S. In the functional food segment, we promoted
management aimed at highly profitable structure and achieved the target. Overall, although wefell short of targets for FY 2023, we continued to achieve sales and profit growth during the 6thMedium-Term Management Plan.
In the 7th Five-Year Medium-Term Management Plan which started in FY2024, we have set
Vision for 2035: "A global healthcare company from Kyoto creating various types of new waysof life for each person around the world," and have created a scenario for future growth byovercoming the patent cliff of Uptravi. By resolving issues identified while promoting the six
actions of the 6th Five-Year Medium-Term Management Plan, and taking up the challenge of"promoting strengthening the three key themes and strengthening five managementfoundations" with all employees, we will be fully prepared in FY 2028 to be a company withrevenue of 300 billion yen and operating profit of 50 billion yen in FY2030 as well as realize
Vision for 2035.
Please see the next pages for the outline of the 7th Five-Year Medium-Term ManagementPlan, "For Global Growth Beyond the Cliff."1Outline of the 7th Five-Year Medium-Term Management Plan
"For Global Growth Beyond the Cliff”
1.Vision for 2035
Based on our corporate philosophy of "Helping People Lead Healthier, Happier Lives," wehave promoted business activities for resolving five issues of materiality to be "a company thatsupplies unique and high-quality pharmaceuticals that are needed by patients and their families
who suffer from diseases for which there are few patients and no established treatments," inother words, "a company playing a meaningful role in the global healthcare sector.” This
direction of our thoughts will not change significantly in the 7th Five-Year Medium-Term
Management Plan.
On the other hand, the business environment surrounding us is expected to continue to change
drastically and become more challenging in the future due to such factors as the promotion of
the use of generic products and the price revision by MHLW to strengthen policies to reduce
medical expenses, advancement of R&D and the emergence of new modalities due totechnological advancement of drug discovery, the entry of major companies into the raredisease area, and development of IT digital technologies.
In this environment, to demonstrate playing a meaningful role in society continuously and growsustainably, it is important that we are more serious about one’s life than ever and continue toprovide valuable products and services. In addition, a venture spirit of pioneering the future
has rooted in Kyoto, where we are, and Kyoto is home to many global companies. With
providing values to the world without being bound by existing products and frameworks, wewill realize our Vision for 2035: "A global healthcare company from Kyoto creating various typesof new ways of life for each person around the world."
2. Overcoming the patent cliff to realize Vision for 2035
Toward realizing Vision for 2035, we will resolve issues of materiality and promote three key
themes and strengthening five management foundation for supporting them thoroughpharmaceutical business and functional food business to overcome Uptravi’s patent cliff.
(1) Three key themes① Fostering growth drivers to replace Uptravi
As growth drivers during the 7th Medium-Term Management Plan, we will launch various
DMD products globally, new hematologic cancer products in Japan and lifecycle
management of approved drug products, and achieve early market penetration.
② Expanding global development
In the U.S. and China, where we have already run by our own marketing, we will strengthen
the product line-up. In addition, we will expand marketing areas to Europe such as U.K.,
Germany and France as well as other regions, by various means including M&A.
③ Continuous pipeline expansion
We will continue to expand our pipeline by In-licensing clinical trial stage products andstrengthen in-house drug discovery through open innovation and AI drug discovery.

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(2) Strengthening five management foundations supporting three key themes① Promote sustainability management for realizing a sustainable society
We will promote initiatives to resolve issues of materiality such as environmental, social, andgovernance issues, and promote information disclosure to be recognized as an attractivecompany.
② Speeding up R&D
We will speed up R&D by flexibly changing the global development system according to thepipeline and strengthening the response to regulatory authorities in each country.
③ Promoting human capital management that allows each employee to grow and diverse
human resources to play an active role
We will become a small but unique team by various human capital measures including
acquisition and development of human resources supporting global expansion or promoting
company-wide DX as well as placing the right employee in the right position.
④ Business process reengineering and productivity improvement by promoting digitalization
We will improve productivity by developing a data utilization infrastructure and reengineering
data-driven business processes.
⑤ Financial strategy for sustainable growthWith developing capital allocation that indicates that we will secure the necessary funds anduse the cash on hand for future growth, we will make the strategic investments necessary
for sustainable growth while ensuring financial soundness.
3. Targets in FY2028
By promoting the "Three key themes and strengthening five management foundations," weaim to achieve revenue of 230 billion yen and operating profit of 30 billion yen in FY2028, andwe will establish a management system to become a company with revenue of 300 billion yenand operating profit of 50 billion yen in FY2030.
(Consolidated basis)Targets in FY2028

Revenue

230 billion yen

Operating profit

30 billion yen

EPS*1

341 yen

ROE*2

8% or more

ROIC*3

9% or more

*1: EPS*2: ROE*3: ROIC

Earnings per Share
Return on Equity
Return on Invested Capital34. Capital allocation
Cumulative R&D expenses for the five-year period (from FY2024 to FY2028) are expected
to total 190 billion yen (annual average of 38 billion yen). Capital investment for suchinitiatives as the construction of a new research building to respond new technologies andcreate innovations, and the active utilization of AI, IoT or RPA making current businessprocess more efficiently is assumed to total 38 billion yen. Growth investment including but
not being limited to M&A and in-licensing is assumed to up to 100 billion yen. Total dividends
are assumed to 42 billion yen.
5. Shareholder return
To return profits to shareholders, our policy is to maintain stable dividend payments while
taking into consideration DOE (Dividend on Equity) ratio.
Safe Harbor Statement
The statements made in this press release contain forward-looking statements based onmanagement’s assumption and beliefs in light of information available as of the day of thisrelease, which involve both known and unknown risks and uncertainties. Therefore, they are
not guarantee of future implementation of numerical targets and plans, and actual results
may differ materially from those contained in this release due to number of factors. This
English press release was translated from the original Japanese version. In the event of any
inconsistency between the Japanese original and the English translation, the former shallprevail.

ContactCorporate Communications Dept., Nippon Shinyaku Co., Ltd.
FAX: +81-75-321-9128

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