Explanation of Strategy

ASKA Pharmaceutical Holdings’ Medium-Term
Management Plan 2025
With the aim of becoming a total healthcare company, ASKA Pharmaceutical Holdings is implementing
its Medium-Term Management Plan 2025, which ends in FY2025. To realize the four visions we haveset, we are pursuing seven strategies based on the foundation of specialty, ability to create, andsocial contribution.

ASKA Pharmaceutical Holdings’ Medium-Term
Management Plan 2025
Four Visions

1234

See pages 26-28 for details.

Operating profit margin: 8%Strategies

Expand business scope centered on
pharmaceutical productsBecome the top domestic company in ourspecialty areas for pharmaceutical products

70.0 billion

70.0
60.0

2. Continuously Create New
Drugs through Advanced
Drug Discovery¥(Billions of yen)

4.8

50.0

18.8 27%

9%

See page 28 for details.

40.0
30.0

50.3 91%

20.0

51.3 73%

3. Overseas Operations
See page 29 for details.

10.0

Continue to be a company that is trusted
by society

02020
Prescription pharmaceutical business

2025

(FY)

Animal health, testing, healthcare, and overseas businesses

The Foundation for Formulating the Medium-Term Management PlanSpecialty

Ability to create

Social contribution

4. Provide New Value to Realize
Total Healthcare
See pages 24-33 for details.

FY2021 Actual

FY2022 Actual

FY2025 Targets

Net sales (Millions of yen)

56,60760,46170,000Operating profit margin (%)

8.5

8.4

8.0

ROE (%)

8.8

8.2

8.0
5. Improve Operational Efficiency,
Cut Costs, and Reinforce Our
Financial Base

Review of FY2022

FY2022 Achievements

Future Challenges and Initiatives∙ Expanded the Company’s share of the LEP∙ Continue to grow the business by providing

formulation market based on the sole sales
rights for DroEthi and achieved market
penetration of RELUMINA to become theleading company in the Ob/Gyn area

18ASKA HD REPORT 2023

in the animal health business. Despite higher R&D andsales promotion expenses from the normalization ofsales activities, operating profit increased to ¥5,108
million due to an increase in gross profit. Ordinary profit
was ¥5,232 million, after recording ¥433 million innon-operating income and ¥308 million in non-operating
expenses. Although extraordinary income of ¥124 million
was recorded from the sale of investment securities,profit attributable to owners of parent declined ¥51
million year on year to ¥4,238 million. This was partly
because there was no extraordinary income from thesale of non-current assets that was booked in theprevious fiscal year.
Note: Amounts are rounded down to the nearest million yen.

∙ Promote accurate understanding through∙ LF111 new drug application filed byawareness campaigns on often-overlooked
diseases∙ Made progress toward the application∙ Expedite schedule for research andpreparation stage for L-105 (pediatric) andthe completion of recruiting for LF111
Phase III clinical trials, among otherdevelopment stage advancements.

6. Foster an Organizational Culture
That Emphasizes thoroughCompliance and Accountability

development themes∙ Create new assets to meet unmet medical
needs in priority areas∙ Concluded a collaborative research

agreement with Epsilon MolecularEngineering, Inc., aiming to create novel
VHH drugs in the Ob/Gyn area

∙ Supported operation of Hataphar’s newplant following its completion∙ Support Hataphar’s new plant operation byenhancing collaboration(ASKA Pharmaceutical)(ASKA Pharmaceutical)
Startedcollaborationinthepharmaceutical∙∙ Establish projects to support improvement
peripheral area (Adoption of Femtech andof women’s health issues (Femtech)other support service businesses, conclusion(ASKA Animal Health)of consortium agreement with four companies,∙ Expand companion animal product lineup
conclusion of joint information provisionand establish and develop an efficient sales
agreement on fetal monitors with MelodystructureInternational Ltd.)(ASKA Pharma Medical)(ASKA Animal Health)∙ Expand lineup of hormone measurement∙ Took over and newly launched a total ofkits for hair samples and developthree products, including feed additives
measurement business for samples otherand veterinary pharmaceuticals
than fixed hair samples(ASKA Pharma Medical)∙ F ollowing registration as a clinical laboratory,
started contracting to perform testing anddiagnostics for medical institutions∙ Continued cost reduction measures∙ Reexamined product portfolio∙ Promote autonomous digitalization ofdepartments to improve operational efficiency∙ Secure a stable financial base while
improving capital efficiency

See pages 24-29 for details.

In FY2022, the second year of ASKA Pharmaceutical
Holdings’ Medium-Term Management Plan 2025, economic
activities continued to normalize. However, soaring
energy and raw material prices and other cost increases
meant the outlook remained uncertain. In thepharmaceutical industry, the business environment has
become increasingly difficult due to factors such as NHI
price revisions imposed each year since April 2021 tocurb drug costs. However, despite these conditions, theGroup was able to match the excellent performance itachieved in the previous fiscal year and has achieved
record consolidated net sales of ¥60,461 million. Thiswas achieved through growth in Ob/Gyn products in thepharmaceutical business and strong sales of feed additives

products that cater to a wide range ofwomen’s life stages

Hyundai Pharm. Co., Ltd. (South Korea)

ROE: 8%Targeted Net Sales

Improve business operations by promoting
open innovation (from R&D to productionand sales)

Seven Strategies

1. Enhance Corporate Value byStrengthening Initiatives in theSpecialty Areas

Net sales: ¥70 billion

7

Seven Strategies: Achievements, Future Challenges and Initiatives∙ Continued reviews of quality
management system∙ Enhance employee awareness throughongoing education and training∙ C ontinued to implement compliance training

See pages 46-51 for details.

∙ Expanded flexible work styles, including
renovating head office and promoting
paperless operations

7. Develop Human Resources toRealize Growth Strategies
See pages 34-39 for details.

∙ Continued health management initiatives tomaintain our presence in White 500 CertifiedHealth & Productivity Management
Outstanding Organizations Recognition
Program∙ Promote measures to achieve work-lifebalance and health management∙ Build an organizational structure thatembraces diversity and enables all
employees to thrive∙ Expanded e-learning, selection, andenhanced opportunities for level-specificeducation and training
ASKA HD REPORT 2023

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