ESG Briefing~ Towards Enhancing Corporate Value ~March 22, 2021
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Cautionary Notes
Forecasts and other forward-looking statements included in this document are basedon information currently available and certain assumptions that the Company deems
reasonable.
Actual performance and other results may differ significantly due to various factors.
Such factors include, but are not limited to:(ⅰ) failures in new product development(ⅱ) changes in general economic conditions due to reform of medical insurance
system(ⅲ) failures in obtaining the expected results due to effects of competing products orgeneric drugs(ⅳ) infringements of the Company’s intellectual property rights by third parties(ⅴ) stagnation of product supply from the delay in production due to natural
disasters, fires and so on(ⅵ) onset of new side effect of post-licensure medical productand,( ⅶ ) currency exchange rate fluctuations and interest rate trend.
Information about pharmaceutical products (including products currently indevelopment) included in this document is not intended to constitute an advertisementof medical advice.

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Today's Program

1. Corporate Philosophy and Sustainability
2. Identification and Progress of Materiality

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Corporate Philosophy

Our Vision is to strive with the utmost effort and strong determination to meet the challenge of combining ourindividual competencies to deliver new, innovative drugs to patients. We will continue being the most passionate
champion in the fight against disease and pain, together with patients, their families, and healthcare providers.

What we are trying to achieve is to meet a challenge that nobody has ever successfully overcome before. It istherefore vital that we bring together our greatest wisdom, heart, aspirations and power as a united team.

We will inevitably come up against brick walls when we are facing unprecedented challenges. When we encountersuch obstacles, we should unhesitatingly rise to confront them and unflinchingly persevere in applying our ingenuity
to overcome them.

We should never lose the sense of dignity and pride we feel as people working in the pharmaceutical industry. We
should be the bringers of hope for all those around the world who are waiting for us to deliver solutions.

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For Growth of Our Company

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Identification of Materiality
Materiality identification process
STEP.1

Identify the Issues

STEP.2Analyze Materiality

STEP.3

Verify Validation••••

STEP.4

ReviewA materiality was analysed in FY 2018
Importance of the materiality is reviewed
annually
Targets and progress disclosed by theme
Materiality will be reanalyzed in FY 2021

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Progress of Materiality
Process for identification of materiality
STEP.1

Identify the Issues

STEP.2Analyze Materiality

STEP.3

Verify Validation

STEP.4

Review■ Creation of innovative drugs■ Response to climate change■ Strengthening of governance towardglobalization■ Promotion of human resource
development■ Promotion of CSR Procurement insupply chain management■ Improvement of access to healthcare

Progress of the blue framed theme will befocused and addressed in the following slides

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Creation of Innovative Drugs

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Expansion of the Development Pipeline- Increased Speed and Success Rate
Changes in the number of clinical studies

Number of studies(By Phase)
94
71
59

29

32

513

714

92

9242

24

1215

20

13
215
0

42

99

45

101

45

31
22
16
229

29

29

19

21

23

444

Combination
with Opdivo
110Phase1Phase2

Phase3EP 4
antagonist

ONO-7913

Anti-CD47
antibody

4331

Major compoundin Phase 1 study
ONO-7684

FXIainhibitor
PD-1 x CD33062012 2013 2014 2015 2016 2017 2018 2019 2020
Other

ONO-4578

ONO-4685 bispecificONO-2808

antibody
S1P5
agonistONO-2909

DPantagonist

ONO-2910

Enhancement ofSchwann celldifferentiation

Axl/Mer
ONO-7475 inhibitor

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Number of Applications/Approvals (Japan)

JapanNews commentary

Get good news for the pharmaceutical industry

Ranking of drug approvals in Japan in 2020:
Ono Pharmaceutical is the top with 11 approvals
Number of applications

Number of approvals

1515101021154135976Planned

10257702014 2015 2016 2017 2018 2019 2020 2021
Oncology

Primary42449210512Planned

2750121122514312916278842014 2015 2016 2017 2018 2019 2020 2021
Oncology

Primary

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Number of Applications/Approvals (Korea/Taiwan)

Korea/Taiwan
Number of applications

Number of approvals

25

Planned20201415510507412127121069410127Taiwan

20181715710102014 2015 2016 2017 2018 2019 2020 2021
Korea

Planned105325508411028242253631032014 2015 2016 2017 2018 2019 2020 2021
Korea

Taiwan10/41

Strengthening of Governance

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Efforts to Strengthen GovernanceThree of 8 Board Directors were Outside Board Directors.
Two women are included in 12 Board Directors/Auditors.
Person having management experience joined.
The number of Board Directors increased from 7 to 8. (3 OutsideBoard Directors)
Raising of standards for discussion
among Members of the Board of Directors
Expansion of reporting by the Board ofDirectors
Evaluation by all Board
Directors and Auditors(conducted annually)

2014

20112018
2017

Change in supervisionfunction of Board of Directors

Evaluation of theeffectiveness of the Boardof Directors

Development ofmission systems
Selection of Outside Board
Directors

Introduction of Corporate Officersystem

2020

Increase in number ofOutside Board Directors

Transfer of authority toexecutive departments

2015

2013

Selection of female Board
Directors

2016
Strengthening ofsupervision function

Established meetings of Executive
Appointment /Executive Compensation

Remuneration
system reform

Introduction of stock option system

Selection of female
Board Member

One female Outside Auditor (The number ofBoard Directors decreased from 9 to 7)

Clarified the Company's Vision and Value based on thecorporate philosophy
The number of Board Directors was changed from 8 to 9.
(2 Outside Board Directors)

Separation of management supervision and execution, and clarification of roles
The number of Board Directors was changed from 11 to 8.

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Outside Board Directors
Three out of 8 Board Directors are Outside Board Directors with the aim of strengthening
the supervising function of the Board of Directors, maintaining and improving managementtransparency and the accuracy of business execution.

Jun Kurihara

Masao NomuraAkiko Okuno

Research Director, The Canon Institutefor Global Studies

Senior Adviser to the Board, Iwatani
CorporationProfessor, Faculty of Business
Administration, Konan University

As a researcher specializing inpolitical economy, corporate
strategy, etc., he supervises themanagement of the company
from an international perspective.
He has also a abundant
knowledge on governance andrisk measures.

As an experienced president ofa listed company, he supervises
the company's management
based on his experience ofmaking many complex businessdecisions.

She supervises themanagement of our company
from the perspective of abusiness scholar withexpertise in female labor andpersonnel evaluation systems.

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Executive Appointment and Executive Compensation Meetings
In order to ensure management transparency and objectivity, the executive
appointment and executive compensation, both of which have governancerelated importance are discussed at the meetings composed of highly
independent Outside Board Directors as key members.
Internal Board Directors

Independent Outside Board Directors

Gyo Sagara

Toshihiro
Tsujinaka

Jun Kurihara

Masao
NomuraAkiko Okuno

Executive Appointment
Meeting

Chairperson〇〇〇〇Executive Compensation
Meeting

Chairpersonー〇〇〇Executive Appointment Meeting● Selection of candidates for Board Directors
and Corporate Auditors● Deliberation on successor plans

Executive Compensation Meeting● Evaluation regarding fixed and performancelinked compensation and deliberation ofcompensation amounts● Supervision to ensure the compensation
system function in a way that encourages
sound growth
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Board Director Compensation
Board Director (excluding Outside Board Directors)
Fixed remuneration(About 70%*)＋
Short-term incentives(Approximately 20% * )・Board Directors’ bonuses＋
Long-term incentives(Approximately 10%* )・Stock-based remunerationtype stock options

Set at an appropriate level by referencing executive
remuneration databases and accounting for business size of thecompany, position, etc.

Sound incentives aimed at ensuring sustainable growth⇒ Achievements assessed from comprehensive angles
・ Performance indicators (sales, operating profit, etc.)
・ Qualitative indicators (linkage to medium-term managementgoals)
・ External factors, etc.
Incentives to improve medium-to long-term corporate value fromthe same perspective as stockholders⇒ Focus on decision making for sustainable growth in thefuture*The appropriateness of the proportion will be determined based on the current management
issues and business environment.
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Evaluation of Effectiveness in Board of Directors
Effectiveness in Board of Directors is evaluated every year by all of the Board Directors
and Auditors
Self-evaluation is conducted through questionnaires and interviews to improve the board

Questionnaires

Response toimprovement
proposalsIssues and improvement policy
sharedReviewby board

Questions highlighting
corporate governance code

Contributing to improvement ofeffectiveness of the Board of Directors[Changes/improvements from last year]● Composition of the Board ofDirectorsInterviews
Evaluation of operation, etc.
of board

Aggregation/analysis⇒ Invitation of female Board Director(Scholar on female labor andpersonnel evaluation systems)● Supervision function of Boardof Directors⇒ Expansion of discussions on
medium-to long-term management● Sharing of investor perspectives⇒ Sharing analyst reports, anddialogues between investors andOutside Board Directors

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Reduction in Cross-Shareholdings
About 30% reduction planned for cross-shareholdings from the level at end of March 2018(111 issues totalling 167.1 billion yen) over the next three years starting from November
2018, aiming to improve capital efficiency and keep pace with changing environment
surrounding corporate governance code
end-Mar 2018

Number of issues

111

end-Sep 2020

79

Change- 28.8 %Amount on balance sheet

167.1 billion yen

142.5 billion yen- 14.7 %End-Mar 2018 market
value

167.1 billion yen

132.0 billion yen- 21.0 %17/41

Issues Going Forward
Roles and functions of the Board of Directors
・Deepening of discussions focusing on globalization⇒ Careful and bold management decisions
Role of Outside Board Directors
・Role expansion in governance⇒ Further involvement in the executive personnel andremuneration decision process
Remuneration system
・Incentives appropriate for short-term/medium-to-longterm management issues⇒ Matching perceptions with shareholders andinvestors
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Human Resource Development

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Human Resource Development (Training Programs for All levels)
Position

Training by hierarchy

Training for general employees
promoted to the highest level

Mid-level
employee

5th-year employee training

Newly hiredemployee

3rd-year employee training
Follow-up training for newly
hired employees
Orientation training for newly
hired employeesWorkshop for deep understanding our mission statement

General employees

Managercandidate

Patient Perspectives Awareness Program(On-site training at medical institutions etc.)

Training for new core employees

Career planning training

Training for new managers

Other

Diversity management training

Managerclass

Correspondence courses / on-line English conversation
classes / support for qualification tests

Manager training

Voluntary participatory training

Management staffs

Manager

VoluntarySelfparticipatory
developmenttraining

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Human Resource Development (Training Programs for Future
Top Management Candidates)
Position

Training forselectedemployees

ExecutiveGeneral employees

Managercandidate
Mid-level
employee
Newly hired
employee

Core training curriculum: set up in different tiers

 Training for Executives is focused on management discussions (includingcommunication with corporate managers of other companies) Training for managers consists of understanding the overall concept of management
and leadership
Human resource pools (target number of candidates in each pool and currentconditions) Executive pool (target number is 20)
 Management pool

Global training

Managerclass

Objectives: Fostering awareness and autonomy as management
 Training for Executives was set at 1 level, and training for managers was divided into
2 levels

Training for selected employees

Management staffs

Manager[Training for selected employees]

・Pool of directors (target number is 100)・Pool of chiefs and section chiefs (target number is 200)

Strengthening of training of promising human resources fromyounger generation[Global training]
Objectives: Fostering human resources who can play an active role globally anddemonstrate leadershipCore training curriculum Consists of environmental adaptability, leadership, and global business skills
Human Resource Pool (target number is 200)

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Ono Innovation Platform
Place of learning

Innovation Café
(Know, touch,and learn)

Top commitment
Reason to do

Field of experience

Transferred toventure company

Accelerator
program(Experience in venture) (Touch and co-create)

Think of innovation as your own

Progress of employee challenges

Community of challengers

Place to challenge

Business contest(Employee challengesand company support)
Ono’s History
What is my innovation?

Discussion

Ono Innovation Platform
A community of challengers, in which each employee
has a strong will to achieve, and can change thepresently "impossible" into "possible."
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Promotion of Women's Involvement
Planned duration
April 1, 2016, to March 31, 2021 (5 years)
Goal(1) Targeting 40% employment rate for women among newly graduated employees
from FY 2017
Female rate

2017

2018

2019

2020

2021

35.1%

48.8%

33.8%

40.3%

40.2%

Goal notachieved(expected)(2) Targeting a female retention rate of at least 90% compared with the male retention rate
among newly graduated employees who joined in the past 5 years

Genderdifference inretention rate

2016

2017

2018

2019

96.8%

95.1%

95.6%

98.9%

2020

Goal
achieved(end of December)

97.2%

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Promotion of Women's Involvement (Issues and Measures)(1) The proportions of female managers and percentage of female incandidates for manager are low.
Goal: At least 15% female candidates for management• Provide opportunities to consider careers, including management,
regardless of gender, so that the employees can develop a concrete
image of their future careers• Provide a system for supporting the careers of subordinates to create a
corporate culture for fostering the next generation of managers(2) Creating an employment environment that contributes to balancing
work life and family life
Goal: Increase the percentage of male employees taking
childcare leave to at least 75%• After childbirth, send an e-mail to supervisors and employees
recommending that they take childcare leave and childcare participationencouragement leave.
• Increase opportunities to disseminate the system• Disseminate the existing system for balancing childcare
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Response to Climate Change

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Environmental VISION (Established in June 2019)
12

2

1

Greenhouse gas

3Waste3Water consumption
Reduce water resource consumption (waterintake) by 15% per production volume unit
in FY2030 (compared to FY2017).

1.Maintain final disposal of industrial waste at 1% or lessevery year.

Our company's zero emissions standards are defined as a total percentage of waste
not recycled is 1% or less of the total amount of waste.

2.Reduce industrial waste emissions by 15% per production
volume unit in FY2030 (compared to FY2017).
3.Promote reductions in the environmental burden in businessactivities.
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Organization for Environmental PromotionRepresentative
Director

Management
MeetingFujiyama Plant

CSR Committee(Chairperson: Executive
Officer in charge of CSR)
EnvironmentalCommittee(Chairperson: Executive
Officer in charge ofEnvironment)
Subcommittee(Climate change, water
resources, and resource
circulation)

Yamaguchi Plant
Joto Development Center

Minase ResearchInstitute
Fukui ResearchInstitute
Tsukuba ResearchInstitute
Headquarters,
Sales offices, etc

ISO 14001-compliant environmental management system (manufacturing sites)
Name of manufacturing site

Acquisition status

Fujiyama Plant

Acquired

Yamaguchi Plant

Scheduled to be acquired in FY 2021

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Environmental Objectives• Reduces In-house CO2 emissions based on our targets in line with "<1.5ºC"(approved by SBTi*).
• Joined RE100, an international initiative aiming to raise the proportion ofrenewable energy used in business activities to 100%, in June 2020.

*For more information on “Science Based Targets initiative (SBTi)”, see https://sciencebasedtargets.org/28/41

Emission Reduction Activities◆ Incorporate renewable energy
Photovoltaic system(Minase Research Institute)◆ Levelling electricity demand (peak shift of daytimeelectricity use)
Large-capacity electricity storage system (Yamaguchi Plant)• Nighttime heat storagesystem• Cogeneration system

Green energy certificates◆ Updating to energy saving facilities
Updating heat source equipment (Minase Research Institute)• Module-type heat pump chillers

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Reducing Environmental Impact of Products◆ Efforts to reduce plastic usage
We succeeded in changing the tray (partition) of the injection packaging box from plastic to paper.
This will result in an annual plastic usage reduction (expected) of 4,800 kg and volume reduction (48% per box).

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Disclosure Based on TCFD
• Disclosure of responses to “Governance”, “Strategy”, “Management of Risks andOpportunities”, and “Indicators and Targets” proposed by TCFD
• Promotion of Integration of risks into Enterprise Risk Management and of annualupdating•For more information on Task Force on Climate-related Financial Disclosures (TCFD), see https://www.fsb-tcfd.org/.

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Promotion of CSR procurement

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Strengthening the Supply Chain
We utilize the CSR evaluation system of EcoVadis in order to objectively andcontinuously grasp the CSR status of important suppliers in the supply chain.
Businesspartners

Companies<Background of use of EcoVadis system>•Efficient information sharing among companies (our business partners and us)
through system utilization•High reliability of data•

Questions designed according to industry and company size

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Supply Chain Management by Promoting CSR Procurement

Comparing the FY 2020 score with the FY 2019 score(1) Mean total score increased by 2.7 points(2) Supply chain company scores ranged from +12 to -2(1 company: down, 3 companies: same score)Note) Since the evaluation for FY 2020 is currently ongoing, comparison was made amongcompanies evaluation have completed as of March 15, 2021.

Since this fiscal year, we have been communicating with supply chain companies that did
not meet our in-house standards to confirm the status of CSR initiatives.
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Improvement of Access to Healthcare

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Efforts to Improve Medical AccessRare diseases
Product nameIndication

StatusMEKTOVI Tablet

Unresectable melanoma with BRAF mutation

Approved

BRAFTOVI Capsule

Unresectable melanoma with BRAF mutation

Approved

Primary central nervous system lymphoma

Approved

Primary macroglobulinemia and lymphoplasmacytic lymphoma

承認済
Approved

VELEXBRU Tablet

Pediatric use

Product nameIndication

StatusONOACT Injection

Tachyarrhythmia in low cardiac function

Under development

OPDIVO Injection

Relapsed or refractory classical Hodgkin lymphoma

Under development

Novel coronavirus infection (COVID-19)
Product name
FOIPAN Tablet

Indication
COVID-19

StatusUnder development

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Improving Medical AccessParticipation in the Global Health Innovative Tecnology Fund in 2018

ONO SWITCH Project (starting from 2018)

Activities (focus on Asia, an important market)

Cambodia : Healthcare professional support and education
Bhutan : Donation of DPT vaccines and hepatitis B vaccines to be used yearly in Bhutan

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ONO SWITCH Project (from 2018)

SWITCH: Save the World by our work style ImprovemenT and CHange
Certain percentage of the expected reduction

Paid separately by company

To society～Donations～

An effort to make donations to NPOs/NGOs related to medicalcare using the money saved through the reduction of overtimework
 SWITCH work style SWITCH saving gained through work style reforms to donations
 SWITCH on efforts to change work style～Donation in 2018～

Total 7.74 million yen donated～Donation in 2019～

Total 9.51 million yen donated38/41

External ESG EvaluationEvaluation
CDP

FY2017FY2018FY2019Climate Change:A- Climate Change:A Climate Change: A
Water:B
Water:B
Water: A-

FY2020
Climate Change: A
Water: A-

FTSE

Score:2.8/5.0

Score:3.2/5.0

Score:3.4/5.0

Score:4.1/5.0

MSCI

Score:BBB

Score:BBB

Score:A

Score:A

DJSI

Score:16/100

Score:19/100

Score:60/100

World Index(Industry Mover)Toyo Keizai
CSR Ranking

Rank:254/1413
companies

Rank:180/1501
companies

Rank121/1593
companies

Rank126/1614
companies

Nikkei Smart
Work surveyー★★★

★★★★☆

★★★★☆

Nikkei SDGsーー★★★★

★★★★☆

Survey on Healthand Productivity
Management

Top 60~70%/1239 companies

White 500

2020 Health &Productivity StockWhite 500

White 500

☆

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ESG-related Awards
Minase Research Institute received“Osaka Governor's Award” of the
Osaka Stop Global Warming Award in FY2020

3R

Reduce, Reuse, Recycle (3R) Promotion Council
Chairman's Award in FY2020
Gold Class which is given to the top 20 companies
in the "Comprehensive Categories" of SUSTAINAESG AWARDS in 2020.
Environment Minister's Award for Global Warming
Prevention Activity in the "Implementation andDissemination of Countermeasures" Categoryin FY2019
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