HEALTHVALUESREPORT
2020

ESH− Our Treasured ESH −Promoting longevity to the world byconnecting through health.
Health is the core value of Rohto and is an important key to facing current social
issues and building the social system of the future.
While Rohto provides Health through its products and services, we also create ouroriginal values of Social and Environment from the point of view of health.
Rohto is connecting with the society through Health , and by collaborating andcorporating with the people surrounding us to promote ESH, we strive to realize
a society in which people can enjoy a long, healthy, and happy life.

Profit Sharing Policy− Rohto s Profit-Sharing Policy −In 2019, Rohto made partial amendments to its articles of incorporation with themission of being a public institution of society. We have reiterated ourdetermination to address issues concerning society from a long-term point of view incollaboration with all the people surrounding us and to share the benefits
gained thereby.
Profits earned through solid businesses will be reinvested with the ideal goal of
realizing a healthier and more sound society. At the same time, profits will be sharedappropriately with our stakeholders who also support us from a long-term
point of view.

CONTENTS

・
・
・
・
・

Message from the Chairman
Message from the PresidentManagement Vision 2030
History of Products and Services
Rohto s New Challenge

・
・
・
・
・

Our Treasured ESH
HealthSocialEnvironment
Governance

・
・
・
・
・

A Financial Foundation That Makes ESH Promotion Possible
Message From the External Director
Data Collection
Corporate Philosophy
Corporate Data

Stakeholders− Stakeholders That Support Rohto −Business Affiliates(Suppliers/Sellers)
By steadily increasing our sales,
we will not only make larger payments
to our business affiliates, but also
give them the opportunity to hire
more employees.

Rohto s Employees
and Their Families
We will make appropriate remuneration
to our employees and their families
through salaries, benefits, or training
supported based on steady sales andprofit increase and the work performedby the employees. We will also support
the mental and physical health of
employees and their families
through promoting healthmanagement.

Shareholders
and Investors

Country and
Local Communities

We will hold a long-term view andstrive to increase our corporate value
by becoming a company that truly
contributes to society. We will aim toachieve a 25% dividend
distribution ratio.

We will contribute to society by paying
taxes on the profit we earn throughour business activities, while also
aiming to contribute to the lives ofpeople in local communities.

Citizens andfuture generations
We will contribute to mental andphysical health by offering products
and services at fair prices. We will also
contribute to the beauty and health ofpeople by sharing knowledge andengaging in activities that
promote health.

Editorial Policy

Please Note

We issued this Health Values Report in the hope that we gain
the full understanding and support of everyone surroundingus, as we communicate the philosophies that we value andexplain our larger goals. We will be gratified if the values that
we are promoting in the areas of Health, Environment,
and Social resonate with you.

Any business, planning, or strategic information included in this reportwhich is not based on the Company s past performance is a forecast
derived from data that is readily available as of the date of this report andis in accordance with the management s decisions. Therefore, the actual
results may greatly differ from the forecasts due to various factors that may
affect the performance. We appreciate your understanding of this matter.
HEALTH VALUES REPORT 2020

MESSAGE FROM THE PRESIDENTMESSAGE FROM THE PRESIDENT

We will keep challenging ourselves to move beyond theboundaries of common sense to build a sustainable society
where people can lead long, happy, and healthy lives.
Chairman

Kunio Yamada
business model. We need to be

In 2020, the Covid-19 pandemic

In the ﬁelds of health and medicine,which spread across the globe

treatment techniques are

open-minded and get rid of walls,

made us realize that we could not

expectedadvancenot separating the Company or thecountry with others. We willtotake anything for granted, and wetremendously over the next 30 to

had to reform our personal and50 years. In addition, diagnostic

welcome young people fromsocial lives. In business, thetechniques to quickly detectabroad to create true diversity, as

common sense which we

diseases, and techniques to

we face the ongoing issue of adeveloped in the past no longer

prevent from getting any diseases

lower birthrate and an aging

applies, and Japanese companies,

will likely be developed as well.

population in Japan. Employees ofwhich used to be good atConsequently, people will live even

our Company multi-task, as he or

standardizing or making models,

longer lives. Japan is known

she assumes roles in family life

are now being forced to value

throughout the world as a country

and in local communities inindividuality and be ﬂexible: things

whose people have exceptional

addition to company duties. We will

which they have not always been

longevity. If we can be successful

not keep the employees solely tied

good at in the past. The concepts

in creating a society in whichto the Company, but we encourageof ESG and SDGs have gained

people enjoy longevity and lead

each of them to be independent

attention, and in a sustainable

happy lives, we can set an

and have a strong connection tosociety, corporations

example for other countries wholife outside of the Company as we

responsibilities and roles havewill also experience an increase inalready allow employees to havebecome very important.

longevity with their people. Our

secondary jobs.

Many of the current social issues

Company will contribute to

By doing so, they can contributeare closely related. It is importantestablishing a new social system into the world as standout

to look ahead 30 to 50 years into

which people can be healthy andindividuals. We hope that all thethe future and not just consider

enjoy a long life. Our eﬀorts

people who are associated withthe short term, as we need toencompass a wide range of health

the Company under s t and andcreate a sustainable society now.

beneﬁts, including not only

agree with the values we treasure

When we think about our lives 50

treatment with medicines but also

and the goals we are aiming for,years from now, we can picture

preventive care and diagnoses

and will always oﬀer us long-term

the children of our younger

and creating health through food.

support as we meet these

employees being active

At the same time, we wish to bechallenges.

participants in the society. From

actively involved in building athat perspective, it is not very far

company where the employees

in the future, as we realize it is ourcan be happy and a structure ofsocialfuture. That is why it is extremelysociety, allowing us to create animportant for our corporate

innovative and unique company

strategy to think of our future frommodel.

a long-term point of view and look

We plan to form a large team with30 to 50 years ahead. The goals

many people and partners who are

we set for the future of

associated with us, and as teamsustainable society are our current

members, we strive to build a new

business strategy.

social system and an innovative

November 2020
ChairmanHEALTH VALUES REPORT 2020

MESSAGE FROM THE PRESIDENTMESSAGE FROM THE PRESIDENT

By expanding business areas in which the Company has
advantages and accepting challenges in new business
opportunities we will realize our Management Vision 2030
Connect for Well-being.
President

Masashi Sugimoto
Working toward Realizing
the Management Vision 2030
We have been living in an era ofsigniﬁcant changes for a long time
now. Our modern era is said to be
one of VUCA. VUCA stands for
Volatility, Uncertainty, Complexity
and Ambiguity, and it means thatthe environment around us keeps
getting more complex and that it isdiﬃcult to foresee the future. In
our current business environment,
we cannot foresee anything. We
li v e in an en v ir onmen t w her evisibility for the future is very poor.
In a period of such low visibility,
we believe that it is important torecognize where we stand basedon our solid values and to picture
w h e r e w e s h o ul d h e a d i n t h efuture. So, in February 2019, ont h e 12 0 t h a n n i v e r s a r y o f i t sfounding, Rohto formulated theManagement Vision, Connect for
W ell-being, which e xpr esses
where we want to be standing at
in 2030, in the belief that it s
important to draw a blueprint for
the future.
Well-being means that individual
people are healthy both physicallyand mentally and that the society
is healthy as well. Moreover it is astate where people are living his
or her daily life feeling happy. The
word happiness means not only
physical and mental health but also
spending active time while feeling
happy. Our Company will continue
to contribute to realizing healthy
and long living society so thatpeople around the world can enjoy

a state of well-being for a longtime, by being a pharmaceuticalcompany that not only sells
medicine but also connects
various areas of our business,
including existing medical products
and skincare products. to help us
realize this vision.
In addition to the management
vision Connect for Well-being , weclariﬁed the areas of business
which we will target in the nextten years and deﬁned Business
Area Vision for each businesssector. The Business Area Visionconsists of six areas: OTC
medicines (general drug products),
skincare, functional foods,
ophthalmology area, regenerative
medicines, and contractdevelopment and manufacturingorganization (CDMO).
For example, in the ﬁeld of OTC
medicines, we will further
strengthen our main product lines.
At the same time, we will pursue a
strategy to enter new categories
through collaborations and M&As
to enhance our product portfolio.
We hope to become a leading
pr o vider o f O T C medicines inJapan. In the areas ofpre-symptomatic diseases andprevention, we will put our eﬀorts
into functional foods so that we
can attain our third corporate pillar
in these areas. We will also solidify
our regenerative medicine
business in the ﬁeld of life science.
By clearly articulating our goals
through Management Vision 2030
and Business Area Vision, we will

promote active collaborations withbusiness partners who can sharethe same goals and values.
Connect for Well-being will be
realized by searching for various
forms of collaboration andcooperation.

Great opportunities for OTC
medicines and functional foods
As medical ﬁnances becometighter, Japan as a country needs
to seriously consider which areas
to use its limited ﬁnancial
resources. In order to control
increasing medical costs, it isexpected that patients switching
to OTC from prescription
medicines will further increase.
Also, self-medication, in which apatient takes care of his or her
own health before going to see a
doctor, will play an important role
in reducing medical costs andprolonging one s healthspan. We
believe that with growing
signiﬁcance of switch to OTC ands e l f - m e di c a t i o n, t h e r e w ill b ehigher dependency on OTC
medicines to achieve longer
healthspan. As a result, the OTC
medicine market will naturally
expand. We already have products
in several business categories,
such as ophthalmic,
dermatological, digestive, andChinese herbal medicines. We plan
to pay special attention to
expanding these markets andenhancing our OTC medicine lines
by building a new brand andcollaborating with othercompanies. In this way, we will

HEALTH VALUES REPORT 2020

establish a company structure that
contributes to people and society
promoting health and longevity, allwhile being ahead of our time.
In addition to expanding ourpresence in the OTC medicine
market, we plan to strengthen oureﬀorts in food industries, including
functional food products. It isdiﬃcult to only rely on medicines
and advances in the medical
industry to expand our healthspan.
That is why the care forpre-symptomatic diseases andprevention is important. We will
support the prolonging of people s
healthspan by oﬀering functional
food products that are developedwith clear evidence of theireﬀectiveness, and a balanced,
nutritious diet through food.
The world is paying close attention
to Japan as we tackle the issue ofa severely aging population. China
and other countries in Asia arealso expected to have large aging
populations 20 years behindJapan. Therefore, we will beutilizing our experience in Japan inother countries including those in
Asia in the future.

Linking our vision with ourstrategic and tacticalorganization structure
In order to realize our Management
Vision 2030, and our businessarea visions, we are building anorganizational structure that can
not only incorporate thesestrategies and visions, but can also
conﬁdently carry these out. In
order to connect our wide rangeof businesses, we need to haveclose collaboration between
organizations within the Company.
It is crucial that organizations andemployees are joined together
with a strong trust so that they
connect in unity.
Since it s f ounding, R ohto has

followed a familial management
style in which each employee ishighly valued. Such management
style has encouraged many of ouremployees to be more loyal to theCompany and more supportive of
the Company and the community.
In addition, our Company has agreat DNA of
positive
persistence,taking on
challeng e s, and doing wha tothers won t do in our blood. Our
employees have tackled extremely
diﬃcult challenges which no one
thinks they can do, with a mindset
to do because it s diﬃcult . We
have accumulated our experiencethrough successes and failuresfrom such challenges.
Our corporate culture of taking onchallenges is a strength that is notfound in other companies, and it
has led to the development ofeach employee s independence
and skills. Now, we will further
strengthen the teamwork and therelationships between thedivisions, based on each
employee s individual abilities andskills. We will start to develop a
structure and procedures topromote teamwork andcollaboration among divisions andcreate an organization where
people have an aﬃnity for one
another, a place in which
everyone can build genuine,
trustworthy relationships. The main
point is to build an organization
with strong roots and have each
employee understand theCompany s vision. This is my roleas the president of the Company.
Our visions are shared so that we
can all look in the same directionand engage in active discussions
with our fellow employees. We will
work hard toward realizing thesemanagement and business visions.

Realizing the values of ESH
to contribute to social healthBy aiming to Connect for
Well-being , we will contribute tosocial health, allowing people toexperience happiness in their daily
lives. On the world stage, theUnited Nations adopted
Sustainable Development Goals(SDGs), and ESG management isbeing sought to promoteawareness of social values. As acompany that continues to devote
itself to beauty and health, we willtake our own active approach inpromoting ESH to realize thevalues in the areas ofEnvironment and Social, allwhile maintaining the core value ofHealth as our central pillar.
In the area of Social, roles that
our Company should play include
rejuvenation of local communities
and rural regions, as well as
support for children of futureg e n e r a t i o n . A s t h eover-concentration in the Tokyo
area accelerates, I believe thatrejuvenation the local communities
and rural regions prosperously andsupporting the health and learningof the children with the future willcontribute to re-energizing thesociety as a whole. I also believethat having people put down theirroots in local communities andregions and building communities
where children can live a healthy
life will lead to greater health andsustainability for the entire society.
In the area of Environment, as
we introduced reﬁll pouches forcosmetics products ahead of othercompanies, we will continue
moving forward with ideas andmethods to protect the earth s
health, such as replacing plastic
bottles with bio-plastic bottles.
Consideration for the environment
is now a well-recognized trait

MESSAGE FROM THE PRESIDENT

among our customers and insociety generally, and theawareness is only spreading. We
have developed our own uniqueenvironmental symbol which will
be used in our product packaging
in the future. Needless to say,sound corporate governance is
crucial to promote such ESH
initiatives. In order to realize ourManagement Vision 2030, we will
enhance the eﬀectiveness of theboard of directors meeting,further strengthen the corporate
functions, and maintain ﬁnancial

stability. We will oﬀer our active
commitment to social health andwill keep challenging ourselves topromote ESH values while paying
attention to being healthy andsound as a company.
Our Company will continue tomove beyond the boundaries ofcommon sense and contribute to
the health of people and society.
We will realize Management Vision
2030 Connect for Well-being, themanagement s vision for 2030, bybuilding strong organizationalbonds within our Company andpromoting collaboration andcooperation with our partners by
sharing our values. We appreciate
your continued long-term support
and guidance.

November 2020
President

HEALTH VALUES REPORT 2020

Connect forManagement Vision 2030

“Well-being” means you are both healthy physically and in good spirits.
You smile at every stage of your life.
Rohto wishes people all over the world to feel the Well-being for a long time.
We will create innovations in many diverse areas, including medicine
and skincare products, and we will Connect them together.
To make it happen, we closely Connect our colleagues and alsoorganizations within the Company.
Furthermore, we will develop talent of our human resources
on a foundation of trust chains, and build a coherent, unified
organization that will further Connect to the Well-being of all people.
“Connect for Well-being”

Business Area Vision 2030/Areas Being Pursued
Delivering reliable drugs, cosmetics, and food products for various stages of life, including healthy states, pre-symptom
diseases, and diseases.

HealthSkincareCreate skincare productsthat regenerate healthyskin by working on
foundational functionsof the skin

Functional Foods
Develop food business based on evidence
and trust as our third pillar

Self-medication

Pre-symptom diseases

OTC Medicines(general drug products)

Aim to be a leading
OTC medicinescompany in Japan

Well - being
Going over the industry
barriers and connecting
businesses
Contract
In order to accomplish the goalsof the management vision for

Regional
Contribution

Ophthalmology
Area

Development andManufacturing
Organization(CDMO)

2030, Rohto will develop active

Education
Regenerative
Medicines

Connect businesses and create
new synergy
OTC
Medicines(general drug
products)

businesses in six business areasby having a vision for each area.

Contents

SkincareWe will also connect eachbusiness by climbing overindustry barriers andExercise

DataCore businesses

collaborating and cooperatingwith our partners. We believe

Functional
Foods

that growth opportunities appear
when we reach acrossindustries or betweenCoresurrounding
businesses

Beyondcore businesses

Agricultureboundaries. We will act like an

Devices

Tourism

amoeba so that we can movearound freely among businesses,
industries, and boundaries tocreate new synergy.

Diseases

Ophthalmology Area

Regenerative Medicines

Cultivate the area ofophthalmology as a leading
company for eye-care products
and quickly realize profitability
in the new business

Commercialize innovative life
science technologies

Contract Development
and Manufacturing
Organization (CDMO*)
Evolve into a contract development
and manufacturing organization
with unique development skills

Professional medication*CDMO: Contract Development Manufacturing Organization

HEALTH VALUES REPORT 2020

History of Products
and Services
Since its beginnings in gastronomical medicines,
Rohto has been responding to market needs.
We offer many products and services in a wide
variety of areas and support total health.
Rohto started as Shinten-do Yamada Yasutami Drugstore in 1899.
Rohto Pharmaceutical Co., Ltd. was established in 1949, and since then,we have been expanding our businesses to the areas of skincare andhealthcare, along with eye care, which is our core area.

1990 〜In recent years, we have been active in our efforts, and have been
expanding sales to department stores in addition to pharmacies and drug
stores, so that we can make the world a healthier place.

1993

Dotest hCG
The Company s firstone-step pregnancy
test. We expanded ourmarket share with thisself-developed product.

1970 〜
Test Kits
1985

Checker
The Company
started sales ofpregnancy test kits in drug stores for the
first time in Japan.

1899 〜

Skincare
1975

Internal Medicine/Food
１８９９

IkatsuLaunched
gastrointestinal
medicine basedon the belief that stomachtrouble can lead to all kindsof diseases.

A sunscreen that
protects skin fromstrong UV rays. The
Company made afull-scale entry into
the sunscreen market.

The Company started sales of medicatedskin treatment ointment and lip balm.
Business then expanded to dermatology agents.

1909

The Company s first eye
drops, which caused
a major revolution in eye
care in Japan.

Sunplay

Mentholatum

Eye CareRohto
Eye Drops

1993

1964

V-Rohto
These were the Company s first eye
drops in a plastic container, and thefirst product inJapan that had
asparagine acidblended in.

1962

Pansiron
The gastrointestinal
medicine brand that
leapt to prominencewith the catchphrase, pang, pang,
pang with Pansiron.

1987

Alguard
A product thatwas designed forthe itchiness inthe eyes caused by allergies.

Rohto Zi
This productled the eye
drops market,
targeting younger generations
with a cooling sensation anda fashionable container.

1994

Rohto Zi Lycee
Eye drops that were
designed for teens andwere popular amonghigh school girls.

2000 〜

2019

The Medical Industry

Expanding to the areaof ophthalmology

2013

Regenerative Medicine
Research
The Regenerative Medicine
Research & Planning Division wasestablished in 2013 and clinical
trials started in 2017.

Services/Other
2009

ｅｐｉ
ｓｔｅｍｅ
Business Expansion
to Department Stores
An anti-aging care brand that
focuses on beauty both insideand outside, using the mostadvanced technology.

Acquired all theshares to Nitten
PharmaceuticalCo., Ltd.

2019

Rohto Quality
Aging Salon

2013

Rohto Beauty Health
Science Salon

A new concept salon that
proposes a rich andhigh-quality approach to aging.

Started offering services for beauty andhealth using the Company s mostadvanced skincare brands.

1996

Dotest LH

2016

Started sales ofovulation
prediction kits
which canforecast
ovulation dates.

Dotest LHa
First non-prescription
ovulation prediction kit
approved.

2008

2007

Hada Labo

2001

Obagi
Led the market
as a pioneer infunctional
cosmetics.

1995

Rohto
C Cube
The first
contact lenssolution offeredby the Company.
This is a brandthat provides
comfort for
those who wear
contact lenses.

1997

Dristan
A new type ofcold medicine
that is taken by
diluting it inwater.

Products with aparticular focus on
Hyaluronic Acid,
which is essential
for healthy skin,formulated withcarefully selected
ingredients that are
truly good for skin.

2006

OXY
A global brandthat supports
men with skinproblems.

2004

Dry Aid
As the numberof people
suffering withdry eyeincreases,
this productfocuses onthat issue.

SUGAO
2013

Skin Aqua De Ou

50
Megumi2004

An anti-aging
care brandfocusing on
the skinproblems that
increase withage.

A series ofsunscreensthat arewater-based
and give a
fresh feelingafter use.

A deodorantskincare brandthat focuses onmale body odor.

Launched a
product witha novelconcept:souffle-likefoundation,and officiallyentered thebase-makeup
market.

2008

2007

Senobic

Offering a
Chinese herbal
medicine that isfamiliar andsuited to thebodies ofJapanese people.

A beverage forchildren that
supports their
growth spurts
with important
ingredients for
growth.

A medicatedbody washthat focuses
on female
body odor.

V Rohto Premium

Eye drops with 11 active ingredientsfor controlling the inflammation
caused by overused eyes.

Wakansen

DEOCO

2016

Rohto V11

2006

2018

2014

High-functioning eye dropsthat focus on the accumulated
fatigue of the eyes of themodern-day population.

2015

Rohto V5
A supplement
for eyes whichis the company s
first product tobe labeled as afunctional food.

HEALTH VALUES REPORT 2020

C o r p o r a t e

What isNever Say NeverI d e n t i t y?

In order to make the world a healthier place,
we will look ahead clearly to the path that we should be taking. And,
despite any difficulties, we will keep challenging ourselves to go forwardand move beyond the boundaries of common sense.

READYFOR SDGs

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The possibilities of
crowdfunding - non-existent in the
CSR activities of companies
As a participating company in READYFOR SDGs, a crowdfunding project,
Rohto supported three organizations that were striving to solve social issues.
The possibilities of
crowdfunding are
non-existent in the CSR
activities of companies
The concept of SDGs* has become
widespread in international society,and corporations are also expected
to contribute to realizing the goals of
SDG s. We believe the goals that
SDGs are trying to achieve are basedon the same values as theCompany s management vision
Connect for Well-being, so we are
getting involved in activities to help
realize SDGs.
READYFOR Inc. supports the various
challenges of individuals andorganizations through crowdfunding.
The SDG project run by READYFOR
Inc. is called READYFOR SDGs. In
regular crowdfunding, a project
owner normally asks for donations
and people who agree with theowner s concept contribute to it.
READYFOR SDGs, though, also has
an element of matching gifts. In
addition to the amount pledged by
supporters, participating companies
add an amount based on a certain
percentage of the money collectedby the supporters to the fund, andthen the total amount is given to theowner of a project. By having
corporations participate, higher
amounts can be collected, andfurthermore, it makes the project
more trustworthy. The Company has
always believed in the endlesspossibilities of crowdfunding when
supported by the goodwill of manyThepeople, rather than projects
supported by large funding from asingle corporation. CSR activities aregood examples of this. We also
respect the corporate mission of
READYFOR Inc., which provides aplatform for crowdfunding and oﬀers
support in solving social issues, andthis is why we decided to participate
in the project.

We selected threeorganizations throughinterviews, and all of themaccomplished their goals.
The process of selection works thisway: A corporation comes up with atheme that they want to give support
to, and then organizations comeforward with their projects. The
organizations that are selected carryout crowdfunding. The Company
selected organizations based on thetheme of supporting new challenges
in the healthcare industry, which isgoal #3 of the SDGs. We narrowed
down candidates from a large
number of applications, and met withrepresentatives from each of these.
We heard about their project outlines
and their passions directly from those
representatives and chose threeorganizations to work with. What weplaced the most importance on was apassionate feeling of wanting tochange the world with a newtechnology or method.
3keys is an authorized NPO that
supports children who suﬀer frompoverty and abuse. 3keys hasdeveloped a website called Mex,
where teens can go to connect withsupport organizations. KIDS Co., Ltd.
is an organization that oﬀers support
to people with phantom limb pains.
Phantom limb pain is a phenomenon
in which suﬀerers feel pain in aphantom limb which seems to exist
as if unchanged from before,
regardless of the fact that the actual
limb or any sensation therein has
been lost. While there is no eﬀective
medicine for this intractable disease,
the Company is engaged inresearching a new rehabilitation
system using VR. The JapaneseSociety of Obstetric Medicine
promotes the advancement ofmaternal medicine, whereby
in t e r n al m e di c in e a n d o b s t e t r i c
medicine work together to promote
safe pregnancies and deliveries forboth mothers and babies. Currently,
there are only four institutions thatoﬀer maternal medicine in Japan, so
the Japanese Society of Obstetric
Medicine is working to increaseawareness of maternal medicine.
With support from a large number ofpeople, all three of theseorganizations were successful inreaching their fundraising goals.
Projects like READYFOR SDGs and
The MICHINOKU Futur e Fund,(established by us), are not supported
by a single party, but rather by the
goodwill of many people. Along with
our partners who share the same
goals, the Company will continue tosupport activities that solve social
issues.

R E A D Y F OR SD G S x R o h t owebsite was launched to support
crowdfunding for authorized NPO
3keys, KIDS Co., Ltd. and theJapanese Society of Obstetric
Medicine.

*SDGs: Sustainable Development Goals set by the United Nations.

HEALTH VALUES REPORT 2020

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m
r
e
he
rath
ge t
n
e
l
but
l
cha
ees
y
o
l
Emp

Employees decided to work on quitting
smoking using their own willpower.
Now, 99.9% of employees are non-smokers.
The Company believes that our employees health has a lot of influence on our customers.
Therefore, we are continuing with activities to make our employees healthier.
Focusing on measures to help
employees quit smoking
since 1995. Many activitie
were implemented based on
our employees proposals.

it should establish a division which
specializes in it, the HealthManagement Promotion Group wasorganized in 2016.

The Quit Smoking Derby
Race Increased the Rate of
Non-Smokers Our Next Goal
is to Realize Well-being

The Company has been promoting
various health management activities,
and in particular, has been
concentrating our eﬀorts on
measures for quitting smoking for our
employees. In 1995, we createdseparated smoking areas in our oﬃce
spaces based on the opinions
submitted by employees. In 2005, thecompany-wide project of quitting
smoking started as a part of the ARK
Project (a project for thinking about
the future of Rohto), in which
employees submitted their own ideas
for reforming the Company. Lecturesb y specialis t s w er e o ﬀ er ed andsmokers held group discussions. Also,
picking up cigarette butts around theoﬃce was a part of the project topromote the end of smoking by thewhole company. In 2007, all smoking
areas on the Company s property
were completely removed, so ﬁnally,
Rohto became smoking-spot-free.
During the 100-Day Health Promotion
Project in 2011, we had a theme of
BMI+1, and the smokers worked onquitting smoking along with their goal
BMI value. In 2014, the Company
established the position of CHO*, as aposition for promoting healthmanagement. Subsequently, in
response to employees suggestions
that, if the Company wants topromote health management further,

Through eﬀorts over the past 20
years in implementing various healthmanagement policies and measures tohelp employees quit smoking, thesmoking rate at the Company
gradually went down, but it stagnatedaround 10%. To change that situation,in 2018, the quit smoking project
began, which had the goal of a 0%
smoking rate for the Company. The
Company recruited about 30 teammembers for the project, and among
them were smokers, non-smokers,
and former smokers. The ﬁrst
challenge the team worked on waswith Ueno Techno Center in Mie
Prefecture, which had a particularlyhigh smoking rate. There weremeetings held with the employees atthe center, and the team came up
with an event called the Quit
Smoking Derby Race. It was basedon the idea that rather than having
an individual work on quitting smoking
on his or her own, we should get
non-smoking employees involved in
the project. If we put a little pressure
on the smokers, but make it fun,maybe then they can quit smoking
while being involved with the project.
In the project, smokers played the01

01. The Derby race challengers wereintroduced on a poster that looked likea horse race card. 02. In the three
years from 2017 to 2020, the smoking
rate went down to 0.1%.

roles of horses in a Derby race. Othere mplo y e e s b e c a m e t h e h o r s e s
supporters, and picked one
employee to support. When a smoker
successfully quit smoking, a supporter
employee received some freshly
baked bread and a cup of coﬀee atthe employee cafeteria. They gave
the challengers some racehorse-likenames for fun and even set up odds.
Everybody enjoyed this project andin the end, every smoker succeededin quit ting smoking. One f ormer
smoker said that his child had said tohim, Dad, I thought you were going to
die when you were smoking, andmany said that they were happy thatthey were able to quit smoking.
Even in locations outside of the Ueno
Techno Center which had enacted
the Quit Smoking Derby Race, one
supporter was assigned to eachsmoker to give pep talks andadditional support. The Company
oﬀered to cover the entire cost of
outpatient programs for quitting
smoking and lectures on how to quit
smoking were scheduled. As of April
2020, the non-smoking rate at theCompany had reached 99.9%. The
Company did not force anyone tostop smoking, but it supported theemployees thoughts and eﬀorts sothat they could work on quitting using
their own willpower.
The Company is determined toc on t inue w i t h a c t i v i t ie s s o t ha t
W ell-b eing is a t t aine d, and all
employees are both mentally andphysically healthy and can lead ahealthy life.

02
FY2017

2020
April

11.6％

0.1％

Smokers*Chief Health Oﬃcer The Company believes that it can contribute not only to the health of its employees, but also to that of customers and society as awhole. The position of CHO was established to reinforce our business development in this area, well ahead of other companies. With our CHO as the leader,
the Company seeks to see an acceleration in its overall health-related social contribution activities, both domestically and in its overseas businesses, and in
the area of research and development. The Company has a clear management policy prioritizing health.

HEALTH VALUES REPORT 2020

TOPICS
Sales of eye drops forthe first time in Africa
Sales started in Ethiopia
On September 19, 2019, the Company
started sales of ROHTO ICE in Ethiopia.
Ethiopia is said to be the area with thehighest daily average amount of ultraviolet
light among all the African countries.
ROHTO ICE is formulated with zinc sulfate
hydrate and is eﬀective in easing thediscomfort in eyes aﬀected by ultraviolet
light. In Africa, the Company used to oﬀer
intraocular lenses for cataract surgeries,
but now we are selling eye drops for theﬁrst time. The Company will continue with
its support for the prevention and treatmentof eye diseases that many African people
are suﬀering from. Also, in future, we plan
to sell eye drops in other African countries,
in addition to Ethiopia, and we will make aneﬀort to promote the habitual use of eye
drops in order to prevent eye diseases.

A concept salon that
supports quality aging
is opened
On December 5, 2019, the Rohto Quality
Aging Salon was opened in Shibuya,
Tokyo. The salon oﬀers services andproducts in the three areas of eye care,skincare and health/beauty care frominside. These services and products are
based on the Company s ideal of quality
aging, which is a rich, high-quality, andfulﬁlling approach to aging. The salon also
provides learning experiences on better
attitudes and habits for health. The salon s
goal is to become a place that can makevisitors happier and healthier every timethey visit.

Becoming a Top Partnerof Bambitious Nara
On January 29, 2020, the Company
entered into a top partner contract with
Bambitious Nara, a professional basketballteam headquartered in Nara Prefecture.
Nara Prefecture is where the Company s
f o u n d e r w a s b o r n, a n d N a r a a n d t h eComp any ha v e b e en c ollab or a ting t o
r e v i t ali z e Nar a s f ar min g ar e a s . T h e
Company hopes to contribute to
Bambitious s supporters and local
communities through collaborations with theteam. We also want to make an eﬀort tohold basketball lessons, visit schools andsupport children's future dreams.

Eye drops are being sold in 25 countries

Expanding our businesses
further with
ophthalmology eye drops

A new plant building that isfriendly to people and theenvironment is on its way

On March 2, 2020, the Company acquired
all the shares to Nitten Pharmaceutical Co.,
Ltd., which specializes in the manufacturing
and sales of ophthalmology eye drops.
Nitten was founded by an ophthalmologist
and has been researching eye drops thatare gentle on the eyes, and is known for
the PF Delami container, which realized
preservative-free eye drops. We plan to
combine Nitten s technologies and ourstrength as a leader in general purpose eye
dr ops t o de v elop and intr oduce ne w,
high-quality ophthalmology eye drops, as
we expand our market overseas as well asin Japan.

The Company is planning to build an addition
to the Ueno Plant, which is our main plant,with an expected completion in 2022. The
addition will be kind to people and theenvironment. The Company plans to utilize
IIoT and AI technologies so that work will bedone eﬃciently and with improved safety.
The addition aims to reduce energy
consumption by 20% compared to theexisting plant by using renewable energy andinvesting in energy-eﬃcient equipment. The
addition will also make it possible to increase
production volume at the current plant by 1.5
t i m e s a n d w ill b e t h e m a n u f a c t ur i n g
headquarters for both Japan and overseas.

Implemented an automaticformulation preparation
robot for the first time inJapan
In March 2020, the Company implemented
an automatic formulation preparation robot
for the ﬁrst time in the domestic cosmetics
industry. This equipment was co-developed
w it h CHEMSPEED T E CHNOL O GIE S in
Switzerland and AMR Inc. It can
automatically weigh and formulate themultiple ingredients needed in thedevelopment of cosmetics products, suchas toner and sunscreen. This automatedequipment also measures and evaluates a
product s thickness and pH values, which
are closely related to the quality and feel ofproducts.

2020
HEALTH VALUES REPORTTOPICSHEALTH VALUES REPORT 2020

Our Treasured

ES H

ESH for Rohto is the value of Health, which is a core value that has been consistentsince the company s establishment, and the values of Social and Environment createdoriginally from the point of view of health. For sustainable creation of values, we will takethe initiative with a long-term view.

HealthSince its founding, the Company has dedicated itself to the beauty and health of
the world and its people. We plan to continue courageously challenging ourselves
to move beyond the boundaries of common sense and create the future of health.

SocialThere are still so many things we can do for the world and for other people.
We are determined to contribute to making the world and its people healthierwith our unique endeavors.

Environment

The health of the Earth is crucial for personal health and longevity.
We will strive to follow our endeavors while being constantly considerateof the environment.

Governance

Along with fulﬁlling our corporate social responsibility in accordance with our
corporate identity and management philosophy, we will strive to gain the trust
and meet the expectations of all our stakeholders by enhancing andstrengthening our corporate governance.

SocialHealthEnvironment

Rohto evolves

Rohto delivers

by upholding

Health to

the values itsocietyhas created

Governance

HEALTH VALUES REPORT 2020

HealthCreating the future of healthResearch and Development
With 120 years of experience and accumulated knowledge,
we are conducting research and development to develop not only functionaland effective products, but also focusing on a comfortable product feel sothat customers wish to continue to use them for a long time.

Eye Drops
Market Share*

Rohto s Eye Care, Staying on Top
The Company s ﬁrst eye drops product was Rohto Eye
Drops, which was launched in 1909. In FY 2019, Rohto s
domestic market share for eye drops was approximately
40%. We have led the eye care market by continuing tofurther develop new technologies and products to respondto eye troubles that change with time and lifestyle shifts.
Among our eye care products, V Rohto Premium, whichstarted being sold in 2016, has 12 active ingredients,

Approx. 40%
FY2019which is the highest number allowed under the OTC and
Ophthalmic Eye Drop Manufacturing and Marketing
Authorization Standards in Japan. This eye drop eases
fatigue of the eyes with a multilateral approach. We willcontinue to oﬀer products that meet the customer needs
which evolve as time passes.
*INTAGE SRI eye drop category: Accumulated sales amount %share for the period of April 2019 to March 2020

HealthSocialEnvironment

GovernanceObtaining and Using Intellectual
Property for Applications in Functional
Cosmetics Products- Column -Our Strength in the Formula Developmentof Functional Cosmetics

In order to dissolve 25% of L-ascorbic acid in water, it is said that thetemperature of the solution needs to be higher than 40°
C. Even if it ismomentarily dissolved, there is still the issue of crystallization when thesolution is cooled. In order to resolve this issue, the Company took thefollowing approach.

・Search for ingredients which promote thesolubilization of L-ascorbic acid・Search for ingredients which control the
crystallization of L-ascorbic acid
As a result, the team was successful with the solubilization andstabilization of highly concentrated vitamin C solutions. We will continue
with our research on the stabilization of drugs formulated with vitamin C
and its eﬀectiveness.

2019 Ranking of Capability to Prevent Other Companies
from Obtaining Patent Rights in the Pharmaceutical Industry

Our Company ranked third in the 2019 Defensive Strength
Ranking of Japanese Pharmaceutical Companies in thearea of competitiveness in the pharmaceutical industry.
This means that the Company is a leading company whichhas ﬁled many patents regarding prior art that could be
defensive factors when other companies ﬁle for patentrights. The Company will continue with its challenge toresearch the formulas that bring about the greatest eﬀects,
as well as develop new products, on top of paying
attention to innovation and originality in our patents.

Name of Company

3rd amongJapanesecompanies

Number of Referenced
Patents

1 MERCK (Germany)

393

2 BAYER (Germany)

337

3 ROCHE (Switzerland)

322

4 PFIZER (U.S.A.)

293

5 NOVARTIS (Switzerland)

270

6 GLAXOSMITHKLINE (U.K.)

216

7 TAKEDA PHARMACEUTICAL CO., LTD. (Japan) 209
8 MERCK SHARP & DOHME (U.S.A.)

186

9 BRISTOL-MYERS SQUIBB (U.S.A.)

177

10 OTSUKA PHARMACEUTICAL (Japan) 161
18 ROHTO PHARMACEUTICAL (Japan) 109
18 DAIICHI SANKYO CO., LTD. (Japan)

109

20 JANNSEN PHARMA (Belgium)

99

Source: research by Patent Result Co., Ltd. The spelling of thecompanies names is based on the names published by Patent
Results Co., Ltd.

Diversified Initiatives for Realizing
Cutting-Edge Medicine
The Company is engaged not only in the area oftreatments for sickness but also in the area ofregenerative medicine, which can be applied to existing
businesses. We focus on the stem cell, which is thesource of the 60 trillion cells that make up our bodies, andare working together with research institutes anduniversities on our research. The Regenerative Medicine
Research & Planning Division was established in 2013.
In 2017, the Company started the ﬁrst clinical trial in
Japan for treatment of cirrhosis of the liver with Niigata
University. The Company also signed a licensing contract
with Shionogi & Company, Ltd. in 2018. The knowledge we
gained through our regenerative medicine research isutilized fully in the development of the products in our
existing businesses, such as eye care and skincare. We
are also applying it to research in existing ﬁelds such as
hair growth.

Automated cultivationequipment successfully
developed for the ﬁrst timein Japan

HEALTH VALUES REPORT 2020

HealthMaking proposals for the Future of HealthMarketing and Sales
There is a reason why people have loved our products for a long time.
We look closely at the potential needs of our customers with the motto
making the uncommon common and then carve out new markets.
The Company will keep responding to customers expectations
with our one-to-one communication skills.

FY2019Long-selling and Successful Products
Make Total Care Possible
V-Rohto has been sold for 55 years since its launch in1964. Now updated to the current New V-Rohto, theproduct is still being used by many customers. Hada
Labo, which was introduced to the market in 2004, has
held the number one spot*1 (for the number of units sold in
the cosmetic lotion category) for 12 consecutive years.
We developed reﬁll pouches for Hada Labo products at
an early stage, and the total accumulated sales for this*1 Share of the Hada Labo line among the total number of cosmetic
lotion units sold.
INTAGE SRI cosmetic lotion market: number of unit sales from April
2019 to March 2020
*2 Brands sold for more than 10 years with FY2019 sales of one
billion yen or higher■ Long-selling Brands

V-RohtoHada Labo

Sold for 56 years and counting

Number 1 for 13 consecutive years

15
2

10
2
1
7

2012

25Brands

brand has reached 150 billion Japanese yen. Suchlong-selling and successful products make it possible for
the Company to oﬀer total care to our customers.

■ Long-selling and Successful Products

1964

Long-selling
Products*2

10 to 19 years
since launch

5

5 billion yen
or more3 billion yen
or more8

1 billion yen
or more20 years or moresince launchHealthSocialEnvironment

Governance

Exploring New Markets While Catering toand Supporting WomenWith the aim of supporting self-medication and contributing
to the health of society, we have been developing
pregnancy test kit and ovulation prediction kits. In addition
to test kits, we launched products including Exiv, anathlete s foot remedy targeted towards women, Refrea,
which was developed through the research of odor careand development of new technologies, and Deoco

addresses changes in female body odor. We focused onbranding, packaging design, and product speciﬁcations sothat female consumers will know that the products aredesigned especially for them, and as a result, we weresuccessful in creating a new market targeted speciﬁcallytowards women.
Number of Happily
Surprised Testimonials- Column -1,963

Happy and Surprised
FY2019Comments from Customers
Happily Surprised Testimonials

Pregnancy Test Kit Checker(Launched in 1985)

DEOCO(Sales started
in 2018)

Ovulation Prediction Kit Dotest LHII
(Sales started in 2020)

We share the feedback from our customers with allcompany-members. We refer to this feedback as happily
surprised testimonials. We are very grateful for the feedback
from our customers, and take it as encouragement which we
can put towards the improvement of our current products, aswell as the planning and development of new products.

Example of a Happily Surprised Testimonial
I knew that a baby would be a gift from above, but I was feelingvery stressed with our attempts to conceive. Thank you to
Rohto for understanding my feelings and oﬀering support. I
want to thank you wholeheartedly.
(Product used: Dotest LHa)

9

Marketing Channels for Extensive
Product Lines
One of the roles of our Company is to contribute to theself-medication of consumers through a wide variety of
OTC medicines, cosmetics, and functional foods. The
Company has extensive product lines and distribution, so

Points of Sale (in Japan)
More than

100,000

FY2019our customers can come across our products anytime andanywhere, whether at a convenience store, asupermarket, a drug store, or a department store.

- Column -Creating a detailed point ofpurchase

Product development applied toeach sales channel

We provide
across-the-board
support from making
proposals to retailheadquarters toproviding information
to stores, and we also
provide maintenanceand sales support foreach point ofpurchase.

In addition to thedirect counter sales indepartment stores, we
put eﬀort into online
business to build more
direct relationships
with our customers.

HEALTH VALUES REPORT 2020

HealthSupporting the future of health

Manufacturing and Quality
We are supporting the future of health with our manufacturing structurethat assures safety and quality and with spontaneous proposals (findings)
from our employees working at the forefront of manufacturing sites.

Management Is Committed to Quality Assurance
Through the Company Quality System
We have a single organization to cover all of our products,
wherein those in three roles (General Marketing Manager,
Quality Assurance Manager, and Safety Management
Supervisor) liaise to manage the system. Based on thisstructure, we have built a system in which the entire
Company, including not only the manufacturing and quality
control sections, but also the management commit
themselves to quality and safety.

■ Rohto s Quality System (One company-wide system)
Top Management (President / Director)
Purchasing
SectionRegulatory
SectionR&D Section
Marketing
SectionCorporate QA and Safety
Vigilance Division

General Marketing
ManagerMarketing Authorization(Three Roles)

Safety Management
Supervisor

Quality AssuranceManager

Overseas AﬃliatedCompanies

Osaka Plant

Ueno Plant

Quality
SectionQuality
SectionRegenerative
Medicine Plant
Quality
Section

Manufacturing
Section (Plant)

Manufacturing
Section (Plant)

Manufacturing
Section (Plants)

Call Center
Sales Section

Distribution
Authorization (GDP)Distribution
CenterOrder Receiving
SectionHealthSocialEnvironment

Governance

A Plant That Supports Health withHigh Quality and High Efficiency
The Ueno Techno Center is at the center of the newest
technologies and uses automated eye care productionlines to process a multitude of diﬀerent product types.
Further, the plant manufactures skincare formulas utilizing
the product quality assurance system developed throughmedicine manufacturing. Its ﬂexible manufacturing lines,
high-level sterility, and foreign material control system
make it possible to manufacture products in the mosteﬃcient way. Our Osaka Plant is our pioneer ofcraftsmanship, and supports the Company s production
technologies. It utilizes the Company s accumulated
original technologies to produce new formulas andadded-value products. Having these two plants lead our
production eﬀorts, we eﬃciently manufacture productswith high quality under world class standards.

Working on Improving Manufacturing
Sites Always with a Fresh Mind
With the aim to improve QCD (Quality, Cost, Delivery), we
formed a group called Kaisen Tai (Improvement PromotionTeam) within our manufacturing sites in 2005 in order tomaintain and continue the cycle of improvement. We
named the group with the hope of working on

Numberof Happily
Ideas
that
Surprised
comeTestimonials
to mind

1,963
9,585
FY2019FY2019improvements always with a fresh mind. The basic idea is
we will try and we will change anything that will lead toan improvement in QCD. All personnel are striving with astrong will to solve issues using their ﬁndings.

■ Rohto s Three Pillars for Kaisen Activities

Looking for Findings
5S(Sort, Set, Shine, Standardize, Sustain)
Activities

Projects with Themes

Develop an eye
forspotting an issue

Create an environment
where issues can be
spotted easily
Learn methods to solve
problems and increase thenumber of employees who canoffer solutions to issues

The Activities of the Improvement Promotion TeamHEALTH VALUES REPORT 2020

SocialSupporting the World s Sight

Contribution to the World
Catering to each foreign country s needs while
conducting close support activities.
Continuing with our individualized support of the World s Sight.

Helping Countries in Need andContributing to International Society
Making a Habit of Taking Good
Care of the Eyes with Customers:
In 1996, Rohto opened an oﬃce in Vietnam, which was theﬁrst country in which we started an overseas businessfrom scratch. At that time it was not customary for
Vietnamese people to use eye drops regularly. Therefore,
the Company ﬁrst promoted a message about how
important one s eyes are and oﬀered free eye exams at
schools. We also introduced a new custom of using eye
drops for tired eyes. Starting in 2006, we began holding
Customer Gathering events every weekend to hear
opinions directly from customers, and those opinions are
utilized in our new product development.

Contributing to People s Healthby Offering Medical Support
In 2016, the Amazon Cataract Project was started tohelp indigenous communities in Brazil, where people could
not easily receive eye care treatment. Under this project,people can receive ophthalmology consultations and thelike. Ophthalmos Rohto has been donating instruments andproducts for cataract surgeries and sending volunteer staﬀ
to help with the project. The number of patients in thisprogram so far is 6,351.

Number of Customer
Gathering ParticipantsMore than

8,500 than

2008 to present

HealthSocialSupporting Cataract Treatment
with our Social Partners

Environment

Governance

1,752,930 yen
17 supporting partners in the fourth period

Total amount of donations

Going Beyond Just BusinessIn a program called Social Partners which started in2016, we engage in supportive activities for the treatmentof cataracts with our business partners supporting oureﬀorts, donating a portion of our eye drops sales tofoundations that are engaged in supporting ophthalmologic
care in regions including Asia and Africa.

Fourth Period (November 2019 to March 2020) Products- Column -NPO Asia Prevention of Blindness
Association
This organization is involved in helping people inpoverty and those at risk of their losing sight in other
Asian countries which lack ophthalmology
technologies. They have performed about 1,000
cataract operations free of charge in Vietnam,
Myanmar, and Laos.

Giving the Strength to See to More People
with Intraocular Lenses
Contributing to a Decrease in the Number of Eye-Sight
Losses Due to Cataracts
PT. Rohto Laboratories Indonesia was established in 1996
as the ﬁrst company in the ASEAN region to manufactureand sell intraocular lenses (IOLs), which are used forcataract surgeries. At that time, it was a challenge to get
local ophthalmologists to understand the quality of IOLs,
but we managed to overcome this issue, and we now sell

our IOLs in 13 countries including Indonesia. IOLs can
reduce the number of people with loss of vision caused bycataracts, and it is an important business for us as it leads
to social contribution. We are now actively involved with
the IOL business, occasionally oﬀering free IOLs.

HEALTH VALUES REPORT 2020

SocialFor the Future of Japan

Domestic Contributions
The Company offers support to the children, women and young
researchers who forge the future of this country. We also encourage
our employees to actively participate in enriching society.

Supporting the Health and Learningof the Next Generation
Medicine Education Support
Program
In 2007, Rohto, as a pharmaceutical manufacturer, started
the Medicine Education Class at Schools program inorder to educate teachers and children about medicine
and promote a healthy lifestyle. Our employees visit
schools to give classes on how to choose and use
medicine. In addition to facilitating visits by these volunteer
employees, we develop materials for teachers that can beused for the Proper Use of Medicine unit in physicaleducation courses at middle schools.

KidZania Koshien*

Number ofChild Visitors

368,362 total
FY2009 to 2018

Based on our desire for children to think on their own, be
diverse, and create value for products and to take aninterest in science through research and development
activities, we are providing fun learning experiences forchildren at KidZania Koshien, which has a pavilion called
the Medicine Research Lab.

Support for Table Tennis
Classes / Co-Sponsoring Table
Tennis Tournaments
Rohto holds table tennis classes in collaboration with Mr.
Yasukazu Murakami (the former coach of the Japanesewomen s national table tennis team and the current coachof the Nippon Life Insurance Company s women s table
tennis team) and is a special sponsor of the historical table
tennis tournament Rohto Pharmaceutical Cup・National
Hopes Table Tennis Tournament.

*Rohto is an oﬃcial sponsor of KidZania Koshien.

HealthSocialEnvironment

GovernanceContributing to the development of the
medical industry for a healthier andmore affluent society
ROHTO AWARD
This award was established in 1995 with the purpose offurther developing and processing ophthalmology researchin Japan. Awards are
granted to young
ophthalmology
researchers who
demonstrate highachievement in both
fundamental researchand clinical researchat a college/university
or equivalent research
institute.

Dermatological Research Fund

(Endowment by Rohto Pharmaceutical)
The fund was established in 2008 with the purpose ofcontributing to progress in the ﬁeld of dermatology. The
Company supports the early stages of research and young
researchers, which leads to the future development ofdermatology.

187 total

As of September
2020

Rohto Women s HealthResearch Award
Society for Women s Health Science Research wasestablished in 2009. At present, Rohto Women s Health
Science Research Award is given to researchers who
demonstrate high achievement in the research ﬁelds ofpregnancy, childbirth, and women s health-spans for the
purpose of the further development and progress ofobstetrics and gynecology research in Japan.

Geriatric Dermatology
Research Fund: Rohto Award
The fund was established in 2007 with the purpose of
supporting a wide range of fundamental and clinicalsurveys and research in geriatric dermatology. This is the
only award oﬀered by the Japanese Association ofGeriatric Dermatology Research.

Contributions to Society from both
the Company and its Employees
Number of Employees
Who Participated

The MICHINOKU
Future Fund897

As of October 2020

After the Great East Japan Earthquake of March 2011,
Rohto and two other companies collaborated to establish ascholarship to help children who lost parents in thedisaster attain further education after graduating from highschool. The number of companies backing this cause isincreasing every year, and support is crossing boundaries
in a wide range of industries. We will continue to oﬀer this
support for a total of
approximately 25
years until thechildren who were inmother s body at thetime of the disasterwill complete theireducation.

Number of Employees
Who ParticipatedKarugamo Fund
(Matching Gifts)

953

As of October 2020

This fund was established in 2003. Employee contributions
to this fund are matched by the Company. Every year, theemployees decide who to support and the fund is used tosupport social welfare and education.

HEALTH VALUES REPORT 2020

Rohto s
Corporate
CultureIndependence
That Moves an
Organization

Flexibility
That Is Unfazedby Change

Rohto started by producing gastronomicaland eye medicines to treat an epidemic, but
we kept adapting and growing our businessin areas where other companies had notestablished themselves. The Company
followed our mottoes of do things others
don t try and do things precisely because
they are diﬃcult, and we kept moving
forward through many changes. We believethat ﬂexibility is one of our strengths.

Seven Pledges

1
2
3
4
5
6
7

As a company, we believ ethat it is important to nurture
employees independence, sothat they can contribute tosociety. We encourage our
employees to be independentand become professionals
who continuously grow as
people. With that as the goal,
the basic requirement for our
employees is to be proactive.
Promotions, transfers, andparticipation in projects all
start with raising one s handand putting oneself out there.
This leads to motivation in
everyone s work.

Diversity in
Each Individual
Thrives

The Company has built a network covering more than
110 countries and regions of the world, and we oﬀer
products that are rooted in local needs. Our researchscientists from overseas assume the role of being abridge between the Company and the local people. They
take their skills gained in Japan and utilize them to makea positive contribution to the world. Domestically inJapan, our many female employees and career-oriented
staﬀ members demonstrate their individuality and aresuccessful in grasping constant changes.

We work wholeheartedly to support society, to help create a better world.
To this end, we are resolved to learn with humility and strive continuously toward
self-improvement.
We place the highest importance in earning the trust and respect of our colleagues and our
external business partners.
We take pride in our corporate culture that fosters lofty ideals, stirs passionate debate, andgenerates energetic actions.
We delight in constantly challenging each other to create waves of happy surprises for ourcustomers worldwide.
Our people are our greatest asset. Our hard working culture, spirit of close cooperation,
determination, passion, and leadership provide the fuel that drives the company.
We ﬁrmly pledge to serve the people, the society, and the environment, and are thankful forour meaningful existence.

HealthIndependence

SocialEnvironment

Governance

Proposals by Employees for the Future of Rohto
The ARK* Project, in which employees nominate
themselves to participate, started in 2003 as aproject for thinking about the future of Rohto. In thisproject, employees work on important assignments
related to the environment, social contribution,
human aﬀairs, and health management, all to makethe future of Rohto better. To date, the project has
proposed many ideas that have been executed,
including the use of company hybrid cars, medicine
education, and personnel management strategies
including second jobs.
*ARK: stands for A (Ashita: tomorrow), R (Rohto) and K (Kangaeru: think about)- Column -Asutsuku Project 2018
All of our employees worked together to come up with 100 ideas tomake Rohto s tomorrow (future) better, and three of those ideas werechosen as main themes for the project which started in 2018. Many
innovative ideas, including an intra-company social media platform topromote better communication, are already being implemented.

[Three Main Themes of the Asutsuku Project]●●

Independence

Visualization and distribution of information
Promotion of work-style reform ● Proposals for education and training programs

Going Beyond Section and Company Boundaries
Number of in-house double-job workers

Number of external challenge workers

54people!

81people!

(as of March 2020)(as of March 2020)

In-house double job

External challenge work

In this program for employees who raise their own
hands to participate, a portion of an employee s
working hours are spent at a diﬀerent division inorder to improve the quality of his or her work andto promote individual professional growth.

This is a program for employees who believe theirregular jobs are important but also want to spendsome of their time contributing to their communities.
Through this program, the Company encourages
diverse ways of working and promotes independentand self-suﬃcient individuals.

To Develop Truly Independent Employees
Deputy Division Manager,
General Aﬀairs and Human Resources Division

Akiko Yamamoto

We believe that an important factor of personal development is having multiple opportunities
to grow. We thought the Company needed to give our employees a chance to face amultitude of possibilities. That is why we introduced new programs such as the in-housedouble job and external challenge work. When an employee takes advantage of the
in-house double job program, he or she is not at his or her regular job full-time. As a result,some employees have commented that both the employees who participated in the programand also those around them have developed themselves for the better. There are many
interesting eﬀects that have started to appear from the program. As this kind of diverse
way of working spreads, the work styles of all our employees will eventually change, andwe believe that is the moment we will realize true independence for our employees.

HEALTH VALUES REPORT 2020

Flexibility

Creating a Culture of Recognizing One Anotheras a Professionals
Our eﬀorts to introduce a culture of recognizing
each other as professional started in 1994. To
encourage better communications among employeewith diﬀerent positions and working experience, weremoved walls and partitions in oﬃces, and all
employees started to call each other by his or her
name and san instead of calling each other by

their work title. In 2005, to make the oﬃce
atmosphere even more light and airy, we introduced
the Rohto Name system, where each employee
selects his or her casual Rohto nickname and iscalled by that nickname regardless of position or
working experience.

- Column -Product Development Through Open Innovation
Inside the Company
We launched Mentholatum Hand Veil Beauty Premium North Moist in 2018, which isa product developed through a collaboration between the R&D Section and the Sales
Division. During the Open Lab held by R&D, which exhibited the seeds for new
product development, the Sales Division had an opportunity to discuss new productswith R&D. Through the discussion, we were able to develop a product which matched
the local needs of an extremely cold area of Hokkaido. Our employees in the Sales
Division working in the area proposed it as a new product, and now, our customers
enjoy this new Hokkaido-exclusive product. This is a great example of our strength,
where we are ﬂexible in taking on diﬀerent opinions and perspectives.

Flexibility

Proportional Ratios in the Business Structure
Change Along with the Needs of the Times
Changes in Sales
Eye care 41.8%
by Business
Other 6.4%
Category(Consolidated)
Internal
Medicine
FY
17.7%

Other 3.1%
Internal
Medicine
11.9%

2000

Eye care 21.2%

FY

2019

Skincare 34.1%

Skincare 63.8%

Since the launch of Obagi functional cosmetics in 2001, we expanded our skincare business signiﬁcantly.
As a result, our business structure has dramatically changed.

Flexibility

Kaisen Activity Starts with Changing
Day-to-day Work
Number of Proposals for Findings (FY2019)799 per month!

Ueno Plant Manager

Hiroyuki Tanaka

Kaisen activities is based on the fundamental motto that we try every idea that is
proposed. Even if the idea is small, experiencing a problem being solved with my own
idea raises everyone s motivation towards their work step by step. The ﬁrst step towardhaving an independent mind is to discard the idea that someone will do it , and to have thewill to do it voluntarily.

HealthDiversity

SocialEnvironment

Governance

Global Human Resources Connect Organicallyand Make Contributions to the Future
Percentage of Researchers Who Are Foreign Nationals (as of March 2020)

Approx. 12.5%, from 11 Countries!

In order for the Rohto Group to respond to theneeds of people around the world, researchers in
diﬀerent countries and regions with diﬀerent
backgrounds need to have constructive discussions
and work together on research and development.

We systematically hire researchers from overseas,
and at present, about 12.5% of our researchers(excluding administrative employees) are fromoverseas.

Foreign National Researchers Flourish
in a Variety of Areas
Basic Research Development Division

Sendy Junedi(From Indonesia)

I value the communication with various departments. I share my knowledge and skills with thelocal staﬀ members in other countries, which helps with timely product development andenhances their basic research skills.

Diversity

Creating an Environment That Integrates to Evolve
Male to Female Ratio (as of March 2020)

4:6

We believe that it is important that diverse views areinterwoven in order to create new, unprecedented
products. The Company continues to evolve as theregular employees who understand corporate
culture well and the mid-career hires who have newviewpoints bring their experiences together. Putting
together a refreshing idea from someone who does
not have much knowledge in a certain ﬁeld with an
idea from someone who has accumulated a lot ofknowledge in the ﬁeld can result in the birth ofinnovation. Also, the number of female employees at
the Company is currently at about 60%. The
Company s eﬀorts to provide a work environment
where everyone can thrive regardless of theirgender started a long time ago. We strive to reﬂect
the many diﬀerent perspectives of our employees
when thinking about people s health.

A Work Environment Where Abilities Are Demonstrated
Regardless of Gender
Senior Executive Oﬃcer and Chief Health Oﬃcer

Masako Rikiishi

In our Company, there are many female employees who are thriving in their work. We havenot introduced any special policy to promote so-called female advancement, and I think thatthe reason why female employees thrive here regardless is that the Company thinks it is
only natural that anyone can be successful regardless of their gender. We have been
actively hiring female workers, and these employees see their female seniors thrive. As aresult, we have many female employees who are successful with their careers in many
diﬀerent ﬁelds.

HEALTH VALUES REPORT 2020

Rohto Pharmaceutical Co., Ltd.

Health Management
Declaration
In 2018, we established a health management declaration with the aim being thatworking at Rohto makes you healthy, and we also set our health goal for 2020.

Rohto has the goal of becoming an organization brimming withhealthy human resources where everyone can stay healthy
and work energetically for a long time.
We hereby declare that we will further promote healthmanagement so that the health of our employees will lead togreater health for society and the next generation.

Achievements
in HealthManagement

Company

2015

Selected under the 1st Health & Productivity Stock Selection Program

2017 to 2019 Selected under the Certiﬁed Health & Productivity Management Outstanding Organizations Recognition Program (White 500)
2017 to 2019 Certiﬁed as a Sports Yell Company by the Japan Sports Agency

s Involvement in Health Management

1970

Morning exercise started

2014

The position of Chief Health Oﬃcer was
established2002

Annual physical ﬁtness evaluations were
implemented

2015

Selected by the Ministry of Economy, Trade andIndustry and the Tokyo Stock Exchange as oneof the ﬁrst Health and Productivity companies

2004

Opened Smart Camp, a welfare facility at
the Company s Osaka Headquarters

2016

Started lending ﬁtness-tracking devices to all
employees Established Health Management
Promotion Group within the General Aﬀairs andHuman Resources Division

2005

Quit Smoking Project started.
(Became a non-smoking company in 2007)2017

Toko-Challe (walking challenge), a walking
event which all employees participated in,
was held

2011

The 100-Day Health Promotion Project,
an event which all employees participated in,
was launched2019

Company-speciﬁc health currency called
ARUCO was introduced

AroundHealthSocialEnvironment

Governance

The Positive Energy of One
Person Spreads to the World

From the Health of Employees
to the Health of Society

World
Japan
Company

Health in Rohto s view is not simply being free of illness. True Health isbased on mental and physical health, which allows a person to work with
passion (purpose and meaning) and experience personal growth. We believethat these employees are the healthy human resources who can support thehealth of society. The most important thing is that each one of our healthy
human resources can work energetically. we believe that the positiveenergies created by our employees spread to our families and friends andreach our customers through our products and services.

Families
Employees

Rohto Health Currency ARUCO
In 2016, we provided ﬁtness-tracking devices to all
employees for the purpose of promoting their health. We
started a program to encourage walking 8,000 steps aday, in addition to 20 minutes of brisk walking daily. In
January 2019, the Rohto health currency, ARUCO, wasintroduced. Employees can earn and accumulate ARUCO
coins according to the amount and degree of healthy
activities they participate in, including the number of steps
they walk daily, the amount of time they spend walking
briskly, time spent on sports activities, and non-smoking.
The coins earned can be used for various activities tofurther enhance mental and physical health. We expectthat this program will encourage the employees who have
not yet been successful at reforming their lifestyles or
improving their health to get motivated. It is important to
not only be health-conscious, but also bring positivechanges to our daily life.

■ Percentage of Employees Who Perform 8,000
Steps and 20-minute Brisk Walk Daily
46.5％

FY2019Goal

FY202080.0％Show Gratitude with 39 ARUCO ( thank you ARUCO )- Promoting Mental Health 39ARUCO started in 2020. Under this system, when an employee sends a message of gratitude to another
employee, both of them receive 39 ARUCO coins. By utilizing the ARUCO project, we plan not only to promotehealthy habits, but also to revitalize internal communications so that both mental and physical health are improved.

Being a leading Company in the Area of
Creating Women s HealthWith 60% of the Company s employees being female, weoﬀer various support to female employees at diﬀerent
stages of their life so they can continue to energeticallywork for Rohto. We put eﬀort into the health of our female
employees and provide them with a pleasant working
environment.
Free breast cancer screening and uterine cervix cancer screening
Free measurement of serum ferritin*1
Free rubella and measles antibody testing, free MR immunization vaccines■ Anemia Level of Female Employees*2
FY2019FY2020(Goal)

5.1％

4.5％*1 Ferritin is a blood protein that reﬂects the body s iron reserves,and is an important index to check for iron deﬁciency.
*2 Hemoglobin (Hb) level of under 10.9g/dl

HEALTH VALUES REPORT 2020

Environment
For personal health and longevity

Health for People and Earth
It is our responsibility to protect our global environment and pass it on to
the next generations. The Company will continue to protect the local andglobal environment from pollution and will promote constant improvements.

Original Environmental Symbolon Rohto s Products
Rohto s View of the Environment
We strive to challenge ourselves in the ﬁeld ofhealth-span. Everyone wishes for good health, which isa source of happiness. In Rohto s view, health meansthat each person is healthy both physically and mentally.
This view of health also
extends to the healthand well-being of society
and the earth. The
health of the earth iscrucial for its people tolive healthily. Therefore,
we are determined topromote environmentally
sustainable activities for
our future. We desire
both healthy people andNEVER SAY NEVERa healthy earth.
for the Healthy Earth
Challenging the Earth s Health-span

In recent years, society is becoming increasingly aware ofenvironmental considerations, and many of our customers
have become more environmentally conscious. To
embrace this, we develop an original R・eco symbol,
which represents our hopes for further increasing public
interest in the environment. The symbol was developed
mainly by the members in the product planning section,and the symbol will soon be printed on Rohto products thatare environmentally friendly, such as Hada Labo.

HealthSocialEnvironment

GovernanceGentle on the Environment and on SkinT h e C o mp an y s c a t alo g - o nl y K ou ji Ha da s erie s
introduces a new concept called Eco-Stand™ thateliminates new bottles and reduces waste. There weremany requests from our customers to please sell reﬁlls
and comments that it is wasteful to throw away bottles,
and we responded to this feedback. Using a stand, apouch bottle, and a pump cap, the product can be usedwithout a bottle. With this method, about 75%* of the waste
produced by one product can be eliminated every year.
We ve started with this product, and we plan to implement
this concept in other products.

The eco-stand and the pump can be reused.

1

2

3

* This volume is calculated based on the assumption that each use is 6 mL, with a yearly use of 2,190 mL. We estimated that the number ofshampoo bottles of the old Kouji Hada (390 mL each) used each year would be 5.61; and the number of shampoo bottles of the new Kouji
Hadaused each year (490 mL each) would be 4.46. The volume was calculated as follows: old Kouji Hadashampoo = bottle + pump, and
new Kouji Hadashampoo = pouch container + cap.

Use of Eco-Friendly Ingredients
Dealing with Microplastic Beads
Microplastic beads are blended into many products which
are designed to be rinsed away, such as detergent
products. Recently, concerns about these microplastic
beads polluting the oceans and the environment haveincreased both domestically and abroad. The Company
stopped blending microplastic beads into our new
detergent products in 2010, and furthermore, in 2016, wecompletely discontinued the use of microplastic beads inexisting products.

the procurement of fatty acid, the Company also plans to
obtain sustainable palm oil ingredients.

Use of Sustainable Ingredients
Palm oil is made from Elaeis trees, and some of it is also
used as an ingredient in cosmetics (fatty acid or glycerin).
However, in recent years, palm oil plantation development
has been identiﬁed as a problem because it damages rain
forests. As of 2020, the Company placed a condition on
the fatty oil that we use for our products, stating that it
must be a sustainable ingredient. As such, we carefully
select our ingredients during procurement. In addition to

Image

HEALTH VALUES REPORT 2020

GovernanceThat Supports ESH Promotion

Corporate
Governance
Basic Views of Corporate Governance
Along with fulﬁlling our corporate social responsibility, we
strive to gain the trust and meet the expectations of all our
stakeholders, including shareholders, consumers, business
partners, and employees, and aim for coexistence andco-prosperity. We are aware that enhancing andstrengthening our corporate governance is an importantmanagement challenge. We will develop an organizational
structure for management and implement the necessary

measures for ensuring transparency and fairness inmanagement and responding to changes in the
management environment in a prompt and accurate
manner. Furthermore, in accordance with our corporate
identity and management philosophy, we will implement a
ROHTO CSR Code of Conduct and ROHTO CSR Charter,and promote compliance with laws and regulations.

Transitions in Rohto s Corporate
Governance2005 ROHTO CSR Charter was established2012 Appointed one external director
2014 Appointed a foreign national to the postof CHO (Chief Health Oﬃcer)
Appointed a female external director for the ﬁrst time2016 Introduced a new corporate identity NEVER SAY NEVER
Established a Compensation/Nomination Advisory Committee
2019 Increased the number of external directors from 2 to 3
Established a Nomination Committee and a Compensation
Committee Updated the internal control system
2020 Oﬃcer structure was implemented Independent external
directors make up more than one third of the oﬃcers■ Current Corporate Governance Status(as of March 2020)

Major categories

Contents

Type of Organization

Company with audit and supervisory board

Number of directors

９(External directors)（３）

Number of independent oﬃcers

5

Term of oﬃce for directors

1year

Advisory bodies to the board to directors Nomination Committee, Compensation Committee
Auditing company

Ernst & Young ShinNihon LLC

HealthSocialEnvironment

GovernanceEvaluation of the Effectiveness of the Board of Directors
The self-evaluation (questionnaire) participated in by all
directors for FY2020 overall showed a positive and similar
response to that of FY2019. However, there was arequests made for concerning training opportunities thatmeet the individual needs of each director. We will work toprovide such training opportunities in the future.

Rohto s Governance Structure That Reflects
Its Diversity

Chairperson

Female❶Board of Directors
ChairmanPresident

Vice
President

Managing
Director

External Directors

Directors

Proposal of Agenda

Authorization❷Nomination Committee

External Directors

Director

Delegation

Reporting❸Compensation Committee

Director

External Directors①Board of Directors②Nomination Committee③Compensation Committee

The Board of Directors accepts its
ﬁduciary responsibility andaccountability to shareholders. For
the common beneﬁt of the various
stakeholders including our groupc o mp a ni e s a n d s h ar e h ol d e r s , i t
strives to contribute to our groupcompanies sustainable growth andto improve mid- to long-term
corporate value.

The Nomination Committee has theduty of drafting proposals for theselection and dismissal of directors
and executive directors, whose rights
are authorized by the Board of
Directors. This committee submits
such proposals to the board of
directors.

Upon delegation by the Board of
Directors, the Compensation
Committee examines individualcompensation. The committee also
prepares drafts for directors
compensation policies, procedures,and structures, in addition to drafting
proposals regarding directors
compensations that are presented at
the shareholders meetings. The
committee also submits drafts to theBoard of Directors.

Anti-corruption Practices
The Company aspires to contribute to a truly healthy andevolving society. To accomplish this goal, the Company
disapproves of any form of corruption, including bribery,
and is working hard to prevent it from happening.
The Company has implemented a comprehensive whistleblowing
system (Rohto Hotline) in order to prevent any kind of

corruption from taking place, including not only monetary
bribes but also non-monetary favors or accommodations. If
a whistle-blowing report is made at our subsidiary or ourgroup company in Japan or overseas, the Internal Audit
Oﬃce will immediately gather information to manage the risk
imposed on the entire Rohto group.

HEALTH VALUES REPORT 2020

Financial Foundations

A Financial Foundation
That Makes ESH Promotion Possible
Our Core Ways of Thinking On FinanceRohto is working on social issues from a long-term perspective while maintaining our current standard of
a 10% operating margin. We will increase sales and profit and reinvest for the future. At the same time, we
strive to appropriately share profits with our stakeholders.

GrowthOur top line is steadily growing, and our operating margin has been consistent over the years.
Sales/Operating margin (consolidated)(million yen)（％）

167,016

154,599

171,742

Operating income/Ordinary income/Profit attributableto owners of parent(consolidated)(million yen)

22,735
18,970 23,085

183,582 188,327

18,849 20,812

15,33915,683

15,964
15,451

19,087

15,410

12.3

10.0

9.4

2015
■ Sales

11.1

2016

2017

11.3

2018

9,098

2019

2015

(Fiscal Year)

Operating margin

10,011

2016

9,799

9,289

2017

2018

2019

(Fiscal Year)■ Operating income ■ Ordinary income■ Profit attributable to owners of parent

Profitability
Higher returns above capital costs have been consistently attained.

ROIC (consolidated)

ROE／ROA (consolidated)

（％）

（％）

10.33
8.64

8.72

8.81

2015

2016

2017

2018

11.43

2019

(Fiscal Year)

ROE

8.6

8.8

8.3

8.8

2015

2016

ROA

10.0

9.5

7.6

7.6

2017

2018

11.4
10.9

2019

(Fiscal Year)

Corporate data

01

Efficiency
Assets are efficiently utilized for sales by consistently decreasing the inventory.

Total asset turnover/Inventory turnover (consolidated)(Times)

7.32

6.63

6.89

6.50

6.19

0.94

0.86

0.90

0.92

0.90

2015

2016

2017

2018

2019

Total asset turnover(Fiscal Year)

Inventory turnover

Stability
The Company s equity ratio has been stable. Healthy sales cash flows and an appropriate range of new
investments let the Company maintain positive and unconstrained cash flows.
Equity Ratio (consolidated)

Cash flow (consolidated)（％）(million yen)

21,745

19,154

64.7

61.4

64.2

65.1

64.5

5,258
△6,066

2015

2016

2017

2018

2019

13,428

11,324(Fiscal Year)

8,140

3,917

19,04011,5009,635△1,603△1,823△2,335△3,386△5,898△9,405△9,511△10,245△11,014

2015

2016

2017

2018

2019

■ Cash flow from operating activities ■ Cash flow from investing activities■ Cash flow from financing activities ■ Free cash flow

(Fiscal Year)

Shareholder Returns
Appropriate returns are made to shareholders, who are our stakeholders.
Retained earnings are reinvested as we aim to grow further.
Net income per share/Dividend per share/Dividend ratio (consolidated)

Net assets per share/Price - book value ratio (consolidated)

(yen)

(yen)

135.13
87.95

80.04
25.0
20.0
2015

27.0

21.0
2016

■ Net income per share
Dividend ratio

29.1

22.0
2017

19.2

25.0
2018

■ Dividend per share(multiple)

1,115.94
969.22 1,030.96

86.00

81.55
23.9

（％）

(Fiscal Year)

2.7

2.1

2.5

2.0

26.0
2019

1,147.42 1,217.67

2015■ Net assets per share

2016

2017

2018

2.4

2019

(Fiscal Year)

Price-book value ratio

HEALTH VALUES REPORT 2020

Message from anExternal Director

I support Rohto in its efforts totackle its long-term challenges
while considering the benefits for
its various stakeholders.
External Director
Professor, Waseda Business School

Akie Iriyama

There are several definitive reasons behind
my decision to become an external director
for Rohto Pharmaceutical in 2019. Ten years
ago, when I was still in the U.S., I met an
employee of the Company. Eventually, I
learned about the various activities in which
the Company was involved. The Company has
been sincerely working on many long-term
issues related to health, society, and theenvironment. The Company took a leadershiprole in establishing the MICHINOKU Future
Fund right after the Great East Japan
Earthquake, supporting children who lost theirparents in the disaster. Rohto has also been
involved in many other recovery efforts.
Finally, I gained respect for the Company as it
was the first major organization in Japan topromote the concept of a second job.
It has been about a year since I came aboard
as an external director, and I feel even morestrongly that Rohto is sincerely working on
many issues relating to health, society, andthe environment. The Covid-19 pandemic in
2020 has made all us face the health andsocietal problems that exist in the world. In
addition, humankind today is facing manyother serious problems, such as climatechange, food scarcity, poverty, health, andhygiene. If we don t address these problems,
we will leave debts to the later generations of
our children and grandchildren, and these
problems will eventually erode theirprosperity. Corporations will not be able toconduct business anymore.
Amongst all these problems, Rohto came up
with the vision of Connect for Well-being forthe future. This shows Rohto s determinationin wanting to be a company that contributes
to the Well-being (of everyone to live happily
with good health), and I believe it is a great
vision. As an external director, I support Rohto
Pharmaceutical s pursuits for Well-being andmake suggestions as to what they can do,w hil e al s o p a y in g a t t e n t i o n t o R o h t o s
corporate governance and the benefits it
provides to its various stakeholders, including
shareholders, employees, and business
partners.
Biography
Dr. Iriyama graduated from the Faculty of Economics at Keio
University and earned a master s degree at the Graduate Schoolof Economics, also at Keio University. He joined Mitsubishi
Research Institute, Inc. and engaged in consulting work mainly for
automobile makers and governmental institutions in Japan andoverseas. In 2008, Dr. Iriyama obtained a Ph.D. at the Graduate
School of Business at the University of Pittsburgh in the UnitedStates. That same year, Dr. Iriyama started teaching as an
assistant professor at the University of Buffalo School ofManagement and The State University of New York. Dr. Iriyama
took the position of an associate professor in 2013 and became aprofessor in April 2019 at Waseda Business School (Graduate
School of Business and Finance). Dr. Iriyama s areas of expertiseare management strategy theories and international management
theories. He authored the bestselling book What the Management
Scholars of the World Are Thinking, published by Eiji Press in2012. Currently, Dr. Iriyama writes columns for World-classManagement Theories in DIAMOND Harvard Business Review,and he is active on various media platforms.

Corporate data

Data

02

Fiscal Year
ESH ‒ Indicators (non-consolidated)

2015

2016

2017

2018

2019

HealthR&D expenses (consolidated) (million yen)

5,811

6,123

6,553

6,831

7,050

Pleasantly Surprised Testimonials *1 (count）

1,405

1,669

1,293

1,191

1,963

Kaisen Activities (count)

11,292

11,758

10,637

10,367

9,585

Employees Donating to the MICHINOKU Future Fund (people)

871

854

866

858

897

Employees Donating to the Karugamo Fund (people)

969

934

945

929

953

SocialEnvironment
Changes in crude oil equivalent (kℓ)

8,319

8,160

8,175

8,015

8,179

Total CO2 emission (t/year）

16,55915,846

15,772

14,66913,957

Relative to sales (t/million yen)

0.186

0.177

0.163

0.141

0.131

Electricity usage (1,000kWh/year)

24,42823,99423,711

24,28925,110

0.274

0.268

0.245

0.233

0.236

2,383

2,395

2,410

2,087

2,072

27

27

25

20

19

292

275

290

266

271

3.3

3.1

3.0

2.5

2.5

Employees Having In-house Double Jobs (people)

ー

36

49

70

54

Employees Participating in External Challenge Work (people)

ー

25

63

84

81

Employee Turnover Rate*2 (%)

4.2

4.6

5.4

5.3

3.1

Paid Annual Leave Taken by Employees (%)

63.4

62.2

65.3

70.1

71.6

Females In Management Positions (%)

19.1

18.6

19.2

21.1

22.8

Employees with Disabilities (%)

1.87

1.90

1.84

2.08

2.10

61

64

105

100

94

Number of Employees (people)

1,524

1,562

1,400

1,474

1,529

Female Employees (people)

907

918

805

857

883

Male Employees (people)

617

644

595

617

646

Relative to sales (1,000kWh/million yen)
City gas usage (1,000m3/year)
Relative to sales (1,000m3/million yen)
Water usage (1,000m3/year)
Sales intensity (1,000m3/million yen)

A Corporate Culture That Is Uniquely Rohto ‒ Indicators (non-consolidated) ‒Employees Taking Maternity Leave*3 (people)

Rohto s Health Management ‒ Indicators (non-consolidated) ‒
ー

28.2

41.0

44.4

46.5

Obesity Rate (Male) (%)

22.4

21.9

24.0

22.5

25.6

Obesity Rate (Female) (%)

9.9

13.7

15.3

15.2

16.4

Smoking Rate (%)

13.5

12.5

11.6

7.7

0.1

Rate of Anemia (%)

5.1

7.3

5.1

4.9

5.1

Sales (million yen)

167,016

154,599

171,742

183,582

188,327

Operating income (million yen)

15,683

15,451

19,087

20,812

23,085

Ordinary income (million yen)

15,33915,964

18,84918,97022,735

Profit attributable to owners of parent company (million yen)

9,098

10,011

9,289

9,799

15,410

ROA: Return on Assets (%)

8.6

8.8

10.0

9.5

10.9

ROE: Return on Equity (%)

8.3

8.8

7.6

7.6

11.4

Capital adequacy ratio (%)

61.4

64.7

64.2

65.1

64.5

Employees Performing 8,000 Steps and 20-minute Brisk Walk Daily (%)

Financial Foundation That Makes ESH Promotion Possible ‒ Indicators (consolidated) ‒*1 Positive feedback and letters of appreciation received from customers*2 Figures do not include retirees and part-time employees*3 Return rates for maternity leave is almost 100% every year, including when leave periods carry over to the following ﬁscal year.

HEALTH VALUES REPORT 2020

Corporate
Philosophy

Rohto Pharmaceutical celebrated its 120th anniversary in 2019.
Our core value of Health has been consistent since
the Company s establishment, and we will continue to move
forward in the long term with this core value while also
promoting values in the areas of Environment and Social.

Corporate Philosophy

1
We recognize that Rohto s greatest responsibility is tocontinue to contribute to people s mental and physicalhealth so that they can lead aﬄuent, happy lives.
Therefore, we shall implement management objectives
from a long-term perspective and strive to create value
in order to achieve our goals.

2
Being mindful of our mission as a public entity,
we shall address issues concerning society at large
in collaboration with all of the people connectedto the Company, and we will share the beneﬁts gained
through these endeavors.

*Articles of Incorporation were partially amended with approval of the shareholders during the General
Meeting of Shareholders in June 2019. Corporate philosophy has been added to Article 2, in order tomanage the Company to focus on public beneﬁts and long-term development.

Corporate Data

Corporate data03

(as of March 31, 2020)

Company ProﬁleDirectors and Oﬃcers(as of June 26, 2020)

Company Name

ROHTO Pharmaceutical Co., Ltd.

Board of Directors

Foundation

February 22, 1899

Chairman

Kunio Yamada

Incorporation

September 15, 1949

President

Masashi Sugimoto

Capital6,504 million yen

Executive Vice President

Masaya Saito

Number of Employees

6,619 <consolidated basis>
1,529 <non-consolidated basis>

Managing Director

Shinichi Kunisaki

Director

Chiharu Takakura

Director

Atsushi Hiyama

External Director

Shingo Torii

External Director

Akie Iriyama

External Director

Haruka Mera

https://www.rohto.co.jp/

Stock Information

Securities Code4527

Total Number of Authorized Shares

399,396,000 shares

Total Number of Issued Shares

114,070,167 shares(excludes 4,018,988 shares of treasury stock)

Number of Shareholders

15,394

Fiscal Year

April 1 to March 31 of the following year

Shareholder Registry Administrator

Mitsubishi UFJ Trust and Banking Corporation

Stock Listing

Tokyo Stock Exchange, Inc. (First Section)

Auditors
Full-time Auditor

Masanori Kimura

Full-time Auditor

Hideto Uemura

External Auditor

Katsusuke Amano

External Auditor

Yasuhiro Tani

Contact Information

Rohto Pharmaceutical Co., Ltd.
Public Relations & Creating Shared Value Division

HEALTH VALUES REPORT 2020

Rohto Pharmaceutical Co., Ltd.
https://www.rohto.co.jp
1-8-1 Tatsumi-nishi, Ikuno-ku, Osaka, Japan 544-8666
Issued November 2020
Printed in Japan