February 9, 2021

Office Divisions of Five Otsuka Group Companiesto Switch to Green Power
Otsuka Holdings Co., Ltd. (Head office: Chiyoda-ku, Tokyo, Japan; President and Representative
Director, CEO: Tatsuo Higuchi) has announced purchase of Green Power Certificates to switch allelectricity used by the office divisions of five group companies* 1 to green power. The Green Power
Certificates are issued by Japan Natural Energy Company Limited (Head office: Shinagawa-ku, Tokyo,Japan; President : Atsushi Fukuta).
In the Green Power Certificate system, the environmental added valueof power produced from renewable energy sources is certified by athird-party certification entity, with Green Power Certificates issued as
tradable items. The purchase price of Green Power Certificates ischanneled through the issuing organization to support maintenance andexpansion of green power generation facilities. Though businesses
purchasing Green Power Certificates might not have their own powergeneration facilities, they are considered to have contributed to theexpansion of green power. In this way, trading of Green Power
Certificates functions as a deterrent to global warming.
In the contract entered into by Otsuka, all electricity consumed by
office divisions of five affiliated companies including branch and local
offices (12,500,000kWh) will be replaced with green power, resulting inGreen Power certification markis certified from Japan
Natural Energy Company Limited

an annual reduction of 6,600 tons of CO2 emissions (equivalent toannual emissions of approximately 2,300 households*2).
The Otsuka group of companies has identified climate change, resource recycling and conservation,and water conservation as important areas (materialities) for environmental initiatives. Regarding climatechange, the goal of 30% reduction in CO2 emissions by 2030*3 is the focus of proactive efforts to reduce
CO2 emissions across the value chain. Aiming for optimization of energy consumption, group-wide
initiatives include introduction of CO2-free electric power and fuel conversion through expansion ofco-generation systems*4 and introduction of solar power generation. Going forward, we will continue tocollaborate on environmental initiatives to contribute to the realization of a low-carbon, sustainable
society.

*1: Otsuka Pharmaceutical Co., Ltd.; Otsuka Pharmaceutical Factory, Inc.; Taiho Pharmaceutical Co., Ltd.; Otsuka Chemical Co., Ltd.; Otsuka Foods Co., Ltd.
*2: Calculated based on 2018 household sector CO2 emissions.
*3 Compared to group company 2017 levels of CO2 emissions in Japan and overseas.
*4 Systems that use fuels such as natural gas, petroleum and LP gas to generate power via engines, turbines, fuel cells etc., and recover waste heat as part of theprocess. Recovered waste heat can be used in factories in the form of steam or hot water as heat sources, air conditioning, hot water supply, etc. The aim iszero-waste use of heat and electricity to achieve high-level comprehensive energy efficiency.

[Reference information]
Major domestic efforts related to climate change by the Otsuka group companies
July 2019:

November 2019
February 2020::

April 2020:

July 2020:

September 2020:

September 2020:

January 2021:

CO2-free electricity introduced at factories and research institutes ofOtsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Taiho
Pharmaceutical, Otsuka Chemical, and Otsuka Foods in Tokushima and at
Fukuroi Factory of Otsuka Pharmaceutical
CO2-free electricity introduced at Shiga Factory of Otsuka Foods
Cogeneration system introduced at Toyama Factory of Otsuka
Pharmaceutical FactoryCO2-free electricity introduced at Takasaki and Saga Factories of Otsuka
Pharmaceutical
CO2-free electricity introduced at Kushiro Factories of Otsuka
Pharmaceutical Factory and Otsuka Foods
Self-consuming solar power generation facility introduced at Kushiro
Factory of Otsuka Pharmaceutical Factory
Carbon-neutral electricity introduced at Taiho Pharmaceutical in Tsukuba
area
Carbon-neutral electricity introduced at Taiho Pharmaceutical in Saitama
area-2-