[Translation]
This document has been translated from the Annual Securities Report for the twelve-month period ended March 31, 2024, pursuant to
the Financial Instruments and Exchange Act of Japan. In the event of any discrepancy between this document and the Japaneseoriginal, the original shall prevail.

Annual Securities Report
The 3rd Term (From April 1, 2023 to March 31, 2024)

ASKA Pharmaceutical Holdings Co., Ltd.
(E35791)

Annual Securities Report
This document has been outputted and printed by adding a table of contents and page numbers to the data containedin the Annual Securities Report “Yukashouken Houkokusho,”) which has been submitted through the usage ofElectronic Disclosure for Investors’ NETwork (EDINET) that is stipulated in Article 27-30-2 of the Financial
Instruments and Exchange Act of Japan.
This document is a translation of the Annual Securities Report (original text: Japanese “Yukashouken Houkokusho”)
submitted to the Prime Minister pursuant to Article 24-1 of the Financial Instruments and Exchange Act. It does notbear any responsibility pertaining to the aforementioned Financial Instruments and Exchange Act regarding thecontent of the English text. We recommend that the authenticity of the content be determined based on the Japanese
text of the Annual Securities Report. The independent auditor’s reports are not translated or included in thisdocument.

Table of Contents
Cover
page
Part I[I]

Page

Corporate Information ……………………………………………………………………………………………
Company Overview …………………………………………………………………………………………
1. Key Management Indicators ……………………………………………………………………………
2. Corporate History ………………………………………………………………………………………
3. Detail of Business ………………………………………………………………………………………………
4. Information on Subsidiaries and Affiliates ………………………………………………………………………
5. Employees ………………………………………………………………………………………………………
[II]
Business Overview ………………………………………………………………………………………………
1. Management Policy, Business Environment, and Issues to be Addressed, etc. ………………………………
2. Principles and Initiatives for Sustainability ……………………………………………………………………
3. Business and Other Risks ………………………………………………………………………………
4. Analysis of Financial Position, Operating Results, and Cash Flows by Management …………………………
5. Material Business Agreements, etc. ……………………………………………………………………………
6. Research and Development Activities ……………………………………………………………………
[III] Equipment and Facilities …………………………………………………………………………………………
1. Capital Expenditures …………………………………………………………………………………………
2. Major Facilities ………………………………………………………………………………………………
3. Plans for Additions and Disposals of Facilities ………………………………………………………………
[IV] Information on the Filing Company ………………………………………………………………………………
1. Information on the Company’s Shares, etc. ……………………………………………………………………
(1) Total Number of Shares, etc. ………………………………………………………………………………
(2) Share Acquisition Rights, etc. ………………………………………………………………………………
(3) Information on Exercise of Moving Strike Warrant, etc. ……………………………………………………
(4) Changes in the Total Number of Issued Shares, Share Capital, etc. ………………………………………
(5) Status by Ownership …………………………………………………………………………………………
(6) Major Shareholders …………………………………………………………………………………………
(7) Voting Rights ………………………………………………………………………………………………
(8) Details of the Officer/Employee Share Ownership Plan ……………………………………………………
2. Acquisition of Treasury Shares, etc. ……………………………………………………………………………
3. Dividend Policy ………………………………………………………………………………………………
4. Corporate Governance, etc. ……………………………………………………………………………………
(1) Overview of Corporate Governance …………………………………………………………………………
(2) Board Members ……………………………………………………………………………………………
(3) Audit Status …………………………………………………………………………………………………
(4) Remuneration of Board Members …………………………………………………………………………
(5) Shareholdings ………………………………………………………………………………………………
[V]
Financial Information ……………………………………………………………………………………………
1. Consolidated Financial Statements ……………………………………………………………………………
(1) Consolidated Financial Statements …………………………………………………………………………
(2) Others ………………………………………………………………………………………………………
2. Financial Statements, etc. ………………………………………………………………………………………
(1) Financial Statements ………………………………………………………………………………………
(2) Major Assets and Liabilities …………………………………………………………………………………
[VI] Overview of Share-related Administration for the Filing Company ……………………………………………
[VII] Reference Information on the Filing Company …………………………………………………………………
1. Information on the Parent Company, etc. of the Filing Company …………………………………………
2. Other References ………………………………………………………………………………………………

1
1
1
3
4
5
6
8
8
9
18
19
24
27
28
28
28
28
29
29
29
29
29
29
30
30
31
31
32
33
34
34
38
42
44
47
52
52
52
86
87
87
92
93
94
94
94

Part II

95

Information on Guarantors, etc., for the Filing Company………………………………………………………

Cover Page
[Document Filed]Annual Securities Report (“Yukashoken Hokokusho”)[Applicable Law]

Article 24, Paragraph 1 of the Financial Instruments and Exchange Act of Japan[Filed to]

Director-General of the Kanto Local Finance Bureau[Filing Date]

June 25, 2024

[Fiscal Year]

The 3rd Term (From April 1, 2023 to March 31, 2024)[Company Name]

Asuka Seiyaku Holdings Kabushiki Kaisha[Company Name in English]

ASKA Pharmaceutical Holdings Co., Ltd.

[Name and Title of Representative]

Takashi Yamaguchi,
President, Member of the Board of Directors, Representative Director[Location of Head Office]5-1, Shibaura 2-chome, Minato-ku, Tokyo, 108-8532, Japan[Phone Number]+81-3-5484-8845 (Representative)[Contact Person]

Manabu Ichikawa, Director, Finance & Accounting Department[Contact Address]

5-1, Shibaura 2-chome, Minato-ku, Tokyo, 108-8532, Japan[Phone Number]+81-3-5484-8845 (Representative)[Contact Person]

Manabu Ichikawa, Director, Finance & Accounting Department[Place for public inspection]

Tokyo Stock Exchange, Inc.
(2-1 Nihonbashi Kabuto-cho, Chuo-ku, Tokyo)

Part I Corporate Information[I] Company Overview
1. Key Management Indicators(1) Consolidated Management Indicators
Fiscal Year

1st Term

2nd Term

3rd Term

Fiscal Year End

March 2022

March 2023

March 2024

Net sales(Millionsof yen)56,60760,461

62,843

Ordinary profit(Millionsof yen)

4,880

5,232

6,522

Profit attributable to owners(Millionsof parentof yen)

4,290

4,238

7,545

4,982

5,983

8,127

Comprehensive income(Millionsof yen)Net assets(Millionsof yen)48,89254,533

61,930Total assets(Millionsof yen)83,297

87,13890,745

Net assets per share(Yen)

1,734.80

1,928.14

2,186.10

Earnings per share(Yen)

151.22150.08266.51

Diluted earnings per share

(Yen)

-

-

-

Equity ratio

(%)

58.70

62.58

68.25

Profit attributable to ownersof parent/Equity

(%)

8.77

8.20

12.96

Price-earnings ratio(Times)

8.35

7.92

8.33

Cash flows from operating
activities(Millionsof yen)

2,842

3,351

1,486

Cash flows from investing(Millionsactivities

of yen)

6,743

1,706

Cash flows from financing(Millions(1,126)

activities

of yen)Cash and cash equivalents at (Millions
end of periodof yen)Number of employees[Excluding an average
number of temporary(Persons)(1,820)(3,943)

17,103

17,505

16,738

777

747

762

[101]

[117]

[127]

(2,996)

employees]
Notes:
1. The Company was established on April 1, 2021 through a sole-share transfer; therefore, no information is presented for the periodprior to that date.
2. Diluted earnings per share is not shown in the above table, as there are no residual shares.
3. The consolidated financial statements for the 1st term consolidated fiscal year (from April 1, 2021 to March 31, 2022) wereprepared by taking over the consolidated financial statements of ASKA Pharmaceutical Co., Ltd., which became a wholly owned
subsidiary through a sole-share transfer.

- 1 -(2) Non-Consolidated Management Indicators
Term

1st Term

2nd Term

3rd Term

Fiscal year ended:

March 2022

March 2023

March 2024

1,371

1,732

3,716

Operating revenue(Millionsof yen)Ordinary profit(Millionsof yen)

717

603

2,467

Profit(Millionsof yen)

682

591

2,466

1,197

1,197

1,197

(Shares)

30,563,199

30,563,199

30,563,199

Net assets(Millionsof yen)40,69540,944

42,680Total assets(Millionsof yen)41,301

41,57543,245(Yen)

1,443.94

1,447.55

1,506.47

15.00

16.00

40.00

(7.00)(8.00)(20.00)Share capital
Total number of sharesissuedNet assets per share
Dividend per share(Interim dividend per share)(Millionsof yen)(Yen)

Earnings per share

(Yen)

23.79

20.95

87.10

Diluted earnings per share

(Yen)

-

-

-

Equity ratio

(%)

98.5

98.5

98.7

Rate of return on equity

(%)

1.68

1.45

5.90

Price-earnings ratio(Times)

53.10

56.76

25.48

Dividend payout ratio

(%)

33.6

76.4

45.9

Number of employees(Persons)

74

79

75

Total shareholder return

(%)

-

95.4

180.1

(%)

(-)

(114.8)(122.1)Highest share price

(Yen)

1,497

1,362

2,259

Lowest share price

(Yen)

919

958

1,162

(Comparison index: Tokyo
Stock Exchange Stock Price
Index 33 industry(Pharmaceuticals))

Notes:
1. The Company was established on April 1, 2021 through a sole-share transfer; therefore, no information is presented for the periodprior to that date.
2. Diluted Earnings per share is not shown in the above table, as there are no residual shares.
3. Total shareholder return for the 1st term fiscal year is not shown because the Company was established on April 1, 2021 througha sole-share transfer. The gross shareholder return and comparative indices for the 2nd term fiscal year are calculated based on theend of the fiscal year ended March 31, 2022.
4. The highest and lowest share prices are those quoted on the Tokyo Stock Exchange Prime Market from April 4, 2022. Prior tothat, they were quoted on the First Section of the Tokyo Stock Exchange.

- 2 -2. Corporate History
April 2021

ASKA Pharmaceutical Co., Ltd. established the Company through a sole-share transfer, and the Company's
shares were listed on the First Section of the Tokyo Stock Exchange (ASKA Pharmaceutical Co., Ltd. wasdelisted in March 2021).
Acquired all shares of ASKA Animal Health Co., Ltd. and ASKA Pharma Medical Co., Ltd. held by
ASKA Pharmaceutical Co., Ltd. through dividend in kind and made them direct subsidiaries.

April 2021

Invested in JAPAN GLASS INDUSTRY CO., LTD. (an associate accounted for using equity method)

April 2021

Established London Office

April 2022

Moved from the First Section of the Tokyo Stock Exchange to the Prime Market due to a revision of
the Tokyo Stock Exchange's market classification.

The following is a corporate history of ASKA Pharmaceutical Co., Ltd., which became a wholly-owned subsidiary of the Company
on April 1, 2021 through a sole-share transfer. (Reference: History of ASKA Pharmaceutical Co., Ltd. up to March 2021)
June 1920
Established Teikoku Hormone Research Institute in Minami Yoshidamachi, Yokohama
June 1929

Changed the company to a stock organization and changed the company name to Teikoku Hormone Mfg.
Research Laboratory Co., Ltd.

January 1936

Newly established the Takatsu Factory (the Kawasaki Research Center) in Takatsu-cho, Tachibana-gun,
Kanagawa (currently Shimosakunobe, Takatsu-ku, Kawasaki-shi)

October 1945

Moved the head office to Shimosakunobe, Kawasaki-shi (on the premises of Takatsu Factory) and changed
the company name to Teikoku Hormone Mfg. Co., Ltd.

October 1946

Relocated the head office to Shiba Minamisakuma-cho, Minato-ku, Tokyo

June 1949

Opened a branch office in Osaka

September 1955

Listed on the Tokyo Stock Exchange

May 1957

Opened a branch office in Fukuoka

July 1957

Opened a branch office in Nagoya

June 1958

Opened a branch office in Sapporo

August 1962

Opened a branch office in Tokyo

November 1962

Relocated the head office to 5-1, Akasaka 2-chome, Minato-ku, Tokyo

June 1967

Opened a branch office in Sendai and HiroshimaJune 1969

Completed construction of a new research building on the premises of the Kawasaki Research Center

June 1970

Opened a branch office in Yokohama

April 1980

Established the Iwaki Factory

April 1987

Opened a branch office in Kyoto

May 1991

Established Medical System Service Kanagawa, Inc. (currently ASKA Pharma Medical Co., Ltd.)(consolidated subsidiary)

September 1993

Listed on the First Section of the Tokyo Stock Exchange

April 1997

Opened the International Representative Office in Frankfurt

September 2001

Relocated the head office to 5-1, Shibaura 2-chome, Minato-ku, Tokyo

February 2005

Approved merger agreement with Grelan Pharmaceutical Co., Ltd.

October 2005

Merged with Grelan Pharmaceutical Co., Ltd. and changed the trade name to
ASKA Pharmaceutical Co., Ltd.

April 2009

Established Actavis ASKA Co., Ltd.

June 2013

Established ASKA Animal Health Co., Ltd. (consolidated subsidiary)

April 2017

Merged with Actavis ASKA Co., Ltd.

October 2018

Invested in NeoASKA Pharma Private Limited in India jointly with Omnicare Drugs India Private Limited

April 2020

Moved the Kawasaki Research Center (Kawasaki-shi, Kanagawa) to the Shonan Research Center (Fujisawashi, Kanagawa)January 2021

Invested in Ha Tay Pharmaceutical Joint Stock Company in Vietnam (an associate accounted for using
equity method)- 3 -3. Detail of Business
The Company was established on April 1, 2021 through a sole-share transfer as the wholly owning parent company of ASKA
Pharmaceutical Co., Ltd. and, as a holding company, conducts business management of group companies and other operations
incidental to it.
The Group (the Company and its affiliates) consists of the Company, 3 subsidiaries and 5 affiliates. The following is a descriptionof the business and its position concerning the business.
Pharmaceutical business
Animal health business……

ASKA Pharmaceutical Co., Ltd. manufactures and purchases the products and sells……

them mainly through Takeda Pharmaceutical Company Limited.
ASKA Animal Health Co., Ltd. purchases some products from ASKA PharmaceuticalCo., Ltd. ASKA Pharmaceutical Co., Ltd. is entrusted with some manufacturing
operations by ASKA Animal Health Co., Ltd.

Other businesses
Clinical testing, etc.

……

ASKA Pharma Medical Co., Ltd. rents facilities from ASKA Pharmaceutical Co., Ltd.
and performs clinical testing business. ASKA Pharmaceutical Co., Ltd. has outsourced
some of its testing operations to ASKA Pharma Medical Co., Ltd.

Others……

ASKA Pharmaceutical Co., Ltd. purchases and sells medical devices and health foods.

ASKA Pharma Medical Co., Ltd.

Sell products
Clinical testing
Testing operations

Clinical testing
Outsource testing operations

Businessmanagement

ASKA Pharmaceutical Co., Ltd.

Outsource
manufacturing
operations

Sell products

Purchaseproducts

ASKA Animal Health Co., Ltd.

Customers

ASKA Pharmaceutical Holdings Co., Ltd.

The following is a schematic diagram of the business.

Sell products

Notes:
1. ASKA Pharmaceutical Co., Ltd., ASKA Pharma Medical Co., Ltd. and ASKA Animal Health Co., Ltd. are consolidated
subsidiaries of the Company.
2. The Company falls under the category of Specified Listed Company, etc. as stipulated in Article 49, Paragraph 2 of the Cabinet
Office Ordinance on Regulation of Trading of Securities. Therefore, the Company will be judged based on figures on aconsolidated basis with respect to the material fact minor criteria for insider trading regulations.

- 4 -4. Information on Subsidiaries and Affiliates
Name

Address

Share Capital

Main Businesses

ASKA Pharmaceutical Co., Ltd.
(Note 1)

Minato-ku,
Tokyo

1,197
million yen

ASKA Pharma Medical Co., Ltd.

Fujisawashi,
Kanagawa

30
Clinical testing businessmillion yen

Ownershipof votingrights heldor owned

Relationship

100 %Businessmanagement
Officers
serve
concurrently

100 %Businessmanagement

100 %Businessmanagement
Officers
serve
concurrently(Consolidated subsidiaries)

ASKA Animal Health Co., Ltd.

Manufacture and sale ofpharmaceutical products andpurchase and sale of medical
devices and health foods, etc.

Minato-ku,
Tokyo

100
million yen

Manufacture, sale, andimport/export of veterinary
pharmaceuticals, feed, and feed
additives, etc.

Hanoi City,
Vietnam

823,417
millionVietnamese
dong

Manufacture, import, and sale ofpharmaceuticals, over-the-counter
drugs, health foods, etc.

34.9 %-

75
million yen

Manufacture and sale ofpharmaceutical packaging
materials and contract packagingof pharmaceuticals and in vitro
diagnostic products

20.04 %-

(Associates accounted for using
equity method)
Ha Tay Pharmaceutical
Joint Stock Company

JAPAN GLASS INDUSTRY CO.,LTD.

Chuo-ku,Tokyo

1 other company
Notes:
1. The company is classified as a specified subsidiary.
2. Net sales of ASKA Pharmaceutical Co., Ltd. and ASKA Animal Health Co., Ltd. account for more than 10% of consolidated net sales.
(excluding inter-company sales among consolidated companies)
Major information on profit/loss

ASKA Pharmaceutical Co., Ltd.

ASKA Animal Health Co., Ltd.

(1) Net sales(2) Ordinary profit

57,303
6,628

million yen
million yen

6,664
125

million yen
million yen(3) Net profit(4) Net assets

7,697
56,072

million yen
million yen

77
2,411

million yen
million yen(5) Total assets

84,277

million yen

3,832

million yen- 5 -5. Employees(1) Consolidated companies
As of March 31, 2024
Segment

Number of employees (Persons)Pharmaceutical business

627

(101)

Animal health business

34

(6)

Other

15

(1)

Company (common)

86

(19)

762

(127)

Total
Notes:

1. The number of employees means the number of full-time employees. The number of temporary employees is shown in parentheses
as an excluded number, with the average number of employees per year in parentheses.
2. The number of employees listed under "Company (common)" is the number of employees belonging to the administrative division.
(2) Non-consolidated (filing company data)
Number of employees(Persons)

Average age(Years old)75

Average years of service(Years)46years 9months

As of March 31, 2024
Average annual salary(Yen)

20years 5months

Segment

9,832,258

Number of employees (Persons)Company (Common)

75
Total

75

Notes:
1. The number of employees includes those who concurrently work for the Group companies.
2. Average annual salary includes bonuses and substandard wages.
(3) Labor unions
The labor union of our Group is called ASKA Pharmaceutical Labor Union and is a member of the Japanese Federation of Energy
and Chemistry (JEC) Workers' Unions.
As of March 31, 2024, the ASKA Pharmaceutical Labor Union has 479 members. Labor-management relations are amicable.
There are no particular points to be noted regarding the labor-management relationship.
(4) Percentage of female workers in management positions, percentage of male workers taking childcare leave, and differences inwages between male and female workers
Consolidated Subsidiaries
Current fiscal year

Name

Percentage of female
Percentage of maleworkers in management workers taking childcare
positions (Note 1)
leave (Note 2)

Differences in wages between male and female workers(Note 1)
Of which part-time
Of which full-time
All workers
and fixed-term
employees
employees

ASKA
Pharmaceutical
11.4%
100.0%
71.0%
Co., Ltd.
*Data as of March 31, 2024 for major consolidated subsidiary ASKA Pharmaceutical Co., Ltd.

76.6%

64.7%

Notes:
1. Calculated in accordance with the provisions of the "Law Concerning the Promotion of Active Roles of Women in Their Professional
Lives" (Law No. 64, 2015).

- 6 -2. Based on the provisions of the "Law Concerning the Welfare of Workers Who Take Care of Children or Other Family Members
Including Child Care and Family Care Leave" (Law No. 76, 1991), the percentage of child care leave, etc. taken is calculated inaccordance with Article 71-4, Item 1 of the "Enforcement Regulations of the Law Concerning the Welfare of Workers Who Take Careof Children or Other Family Members Including Child Care and Family Care Leave" (Ministry of Labor Ordinance No. 25, 1991).
[Differences in wages between male and female workers]
ASKA Pharmaceutical Co., Ltd. has a single-rate wage (grade) system, and there are no differences between male and female employees
regarding gender, age, etc. However, there are some differences between male and female employees in the personnel portfolio by job
group and grade, which results in wage differences.
We will improve our human resource portfolio and wage differentials in order to achieve ASKA Pharmaceutical Co., Ltd.'s vision of adiverse workforce that is not restricted by age or attributes.
- Factors causing the discrepancy are described below.
i) In FY2023, the ratio of female managers improved from 9.9% to 11.4% due to the promotion of gender diversity initiatives.
Although the ratio of female managers is still the cause of the wage difference, the wage gap has been narrowing. Therefore, wewill actively promote the training and promotion of female candidates for management positions.
ii) Among part-time and fixed-term workers, women account for 89.4% of part-time employees whose wages are lower than thoseof fixed-term workers (rehired workers), which is the reason for the difference.
[Supplementary Data] Data from ASKA Pharmaceutical Co., Ltd.
a. Status of female employees
FY2019FY2020

FY2021

FY2022

FY2023

Ratio of female employees (%)

28.3

29.4

30.4

32.9

32.7

Ratio of female managers (%)

6.6

6.5

7.1

9.9

11.4

Ratio of female candidates for management positions (%)

13.6

18.1

23.7

20.8

23.0

FY2019FY2020

FY2021

FY2022

FY2023

20

14

11

16

19

2.3

1.7

1.3

1.9

2.3

11

5

2

19

24

1.3

0.6

0.2

2.3

2.9

35.5

26.3

15.4

54.3

55.8

1

2

1

1

2

2.6

10.0

3.7

1.7

4.7

2.6

4.9

2.6

2.4

3.2

40

16

14

29

19

4.6

1.9

1.7

3.5

2.2

0

0

0

1

1

873

844

840

829

838

b. Status of employee hiring and leaving
New graduate hires (Persons)
Percentage of new graduates hired(% of total employees)
Mid-career professionals (Persons)
Percentage of mid-career professionals(% of total employees)
Percentage of mid-career professionals(% of fiscal year hires)
Number of foreign hires (Persons)Ratio of foreign hires(% of total hires in fiscal year)(% of employees in related departments (%)
Voluntary resignation (Persons)Voluntary resignation(% of total employees)
New graduates resigning within the first 3 years (Persons)Total number of employees*Data for both Supplementary Data a. and b. are as of March 31 of each fiscal year for major consolidated
subsidiary ASKA Pharmaceutical Co., Ltd.

- 7 -[II] Business Overview
1. Management Policy, Business Environment, and Issues to be Addressed, etc.
The management policy, business environment, and issues to be addressed by the Group are as follows. Forward-looking statementsin the text are based on the judgment of the Group as of the end of the current consolidated fiscal year.
(1) Basic management policy of the Company
Under the corporate philosophy: "contribute toward the improvement of people’s health and progress in society through thedevelopment of innovative products,” we intend to grow and develop as a company trusted by society through medical-related
businesses such as "animal health business" and "testing business," with "pharmaceutical business" at the core.
In addition, with the diversification of values toward health and lifestyle and rapid changes in the business environment, the Groupstarted a holding company structure in FY2021 for flexible decision-making and stronger governance. In the domestic
pharmaceutical business, which is the core of the Group, we will make great strides as a leading company in specialty areas suchas obstetrics and gynecology. At the same time, based on our existing businesses, we will aim to become a "total healthcarecompany" that develops businesses in the overall healthcare market of "prevention, testing and diagnosis, treatment and prognosis"
in Japan and overseas. Furthermore, as a company involved in "life," we will continue to strive for sustainable growth and solutions
to social issues, promote activities to achieve the Sustainable Development Goals (SDGs) and contribute to the realization of anaffluent society.
(2) Target Management Indicators
Our Group has formulated a Medium-Term Management Plan that covers the period from April 2021 to the end of March 2026.
In FY2025, the plan's final year, we aim to achieve net sales of 70 billion yen, operating profit margin of 8%, and profit attributableto owners of parent/equity (ROE) of 8%.
(3) Medium to long term management strategies and issues to be addressed by the Company
In the Medium-Term Management Plan starting from FY2021, our Group will further develop the foundation we have built up
while working on the following seven strategies to realize our goal of becoming a "total healthcare company with a strong
foundation as a specialty pharma company."
1. To enhance corporate value by strengthening initiatives in specialty areas, we will contribute to improving women's quality oflife through the continued development and marketing of obstetrics and gynecology products. Furthermore, we will promote
activities to raise awareness of thyroid diseases, with a focus on thyroid hormone products, which have been on the market for
100 years.
2. To continuously create new drugs, we will engage in global alliance activities by utilizing open innovation and collaboratingwith our newly established London office.
3. As part of our overseas business development, we will promote cooperative relationships with our business partners, especiallyin Asia.
4. To provide new value toward the realization of total healthcare, we will establish a minimally invasive testing method businessin the testing business. In addition, we will develop and market products that support the health of companion animals by
expanding our strengths in breeding, immunity, and nutrition in the field of livestock and fisheries.
5. To strengthen our financial base, we will promote operational efficiency and cost reduction through IT and other means.
6. To remain a company that earns the trust of society, we will fulfill our responsibilities as a life-related company by fostering anorganizational culture that emphasizes reliability and thorough compliance.
7. To utilize human resources to realize our growth strategy, we will create an organizational structure that can respond to diverse
career aspirations through a new personnel system and expand capabilities through systematic education and training.
ASKA Pharmaceutical Co., Ltd., which conducts the core pharmaceutical business, will advance the development stage of AKP009, TRM-270, and AKP-022, which are currently undergoing clinical trials. Furthermore, we will file an application for
manufacturing and marketing approval for LF111 for which Phase III trials were underway during the first quarter of FY2024. In
addition to our in-house technologies, we will also aim to stage up the seeds of drug discovery through open innovation andexpand our pipeline through in/out-licensing activities mainly in the fields of internal medicine, obstetrics and gynecology, andurology. In sales activities, we will continue to conduct efficient sales activities utilizing webinars, etc., as well as providing highquality information through the establishment of a specialty area system, which was introduced to conduct information provision
activities focusing on the field of obstetrics and gynecology and RIFXIMA, poorly absorbable rifamycin antimicrobial agent. We
will further improve our presence in the field of obstetrics and gynecology by providing information on Jemina, dysmenorrhea
agent and Riona, iron deficiency anemia agent for which we are conducting co-promotion activities, in addition to products that
contribute to business performance, mainly RELUMINA, uterine fibroid and endometriosis agent, and DroEthi, dysmenorrhea
agent. RIFXIMA received an additional indication for the improvement of hyperammonemia in hepatic encephalopathy for use in- 8 -pediatric patients in response to a request for development from the academic community. We will continue to promote the use
and penetration of this agent. Moreover, as THYRADIN is an indispensable drug in the medical field with more than 90% of thedomestic market share, we will maintain a stable supply system and continue to engage in educational activities on thyroid diseases
as a leading company in the treatment of thyroid diseases.
We strengthen our activities to develop collaborations with other companies in order to realize a total healthcare company. As a
specific initiative, we have started to sell videos that contribute to improving health literacy based on the concept of "About Sex:
What Workers Should Know" targeting people working in companies, organizations, etc. We also aim to create new value bycollaborating with startups to solve women's health issues through "ASKA Innovation Fund," a corporate venture capital fundjointly established with Future Venture Capital Co., Ltd. ASKA Animal Health Co., Ltd., which sells veterinary pharmaceuticals
and feeds, continues to develop and launch products that contribute to animal welfare. Going forward, we will further promote
the penetration of our products for growing companion animal market. In addition to these, ASKA Pharma Medical Co., Ltd.,
which is engaged in the testing business, has expanded its new business by developing a kit for measuring hair hormone levels,
based on a technology for measuring steroid hormones from hair. In addition to the existing kit for measuring hair hormone levels
that enables risk assessment of androgenetic alopecia (AGA), we have developed a new kit for measuring progesterone, one of
the female hormones, and began sales in April 2024. We will continue to develop new hormone measurement kits andmeasurement of samples other than hair.
Based on our corporate philosophy: "contribute toward the improvement of people's health and progress in society through thedevelopment of innovative products", we have been working to solve social issues through our business. Since April 2021, we
have strengthened our efforts by establishing the ESG Committee, appointing a member of the Board of Directors in charge ofsustainability, establishing a dedicated department within the Corporate Planning Department, and operating the "ESG Promotion
Meeting" and the "The Committee of Managers for ESG Promotion." Through the establishment of these operations, we will raiseawareness and promote sustainability-conscious management. We will also contribute to the realization of a sustainable society
through initiatives related to addressing climate change, realizing a decarbonized society, and working on human capital, with theaim of achieving sustainable growth through the creation of social value and enhancing corporate value over the medium to longterm.

2. Principles and Initiatives for Sustainability(1) Overall Sustainability Initiatives
In April 2021, we took a new step forward with the transition to a holding company structure. We work to solve social issues
through our business based on our corporate philosophy: "contribute toward the improvement of people’s health and progress insociety through the development of innovative products.”
In April 2023, we strengthened our structure by appointing a Board member in charge of sustainability and establishing a
specialized department within the Corporate Planning Department to accelerate our efforts to date further.
i) Governance
The Company has promoted ESG management as a key policy and has established the ESG Committee as a voluntary advisorycommittee independent of the Board of Directors.
The ESG Committee is chaired by Senior Managing Member of the Board of Directors, Representative Director. It consists ofsubsidiaries’ officers, the ESG Promotion Meeting chairperson, the Corporate Planning Department Director, and persons
appointed by the chairperson. Risk management is conducted by inquiring/reporting to the Board of Directors.
The details of the ESG promotion system are as follows.
[ESG Promotion System]
There are three meeting bodies: the ESG Committee, the ESG Promotion Meeting, and The Committee of Managers for ESG
Promotion.
The ESG Committee deliberates on matters proposed by the ESG Promotion Meeting and reports to the Board of Directors fromthe ESG Promotion Meeting as soon as a decision is made.
The ESG activity promotion flow of the three congressional bodies is as follows.
1. The Committee of Managers for ESG Promotion, consisting of representatives from each division and department, identifies"issues" and proposes them to the ESG Promotion Meeting.
2. The ESG Promotion Meeting consolidates issues from a company-wide perspective at each headquarters and division andproposes a "Material-issue Proposal" to the ESG Committee.
3. The ESG Committee identifies company-wide material issues and determines the ESG strategy.
4. Under the ESG Promotion Meeting, The Committee of Managers for ESG Promotion formulates departmental goals and plansand promotes ESG activities.

- 9 -5. The ESG Promotion Meeting compiles the ESG activities promoted by each division every quarter and reports them to the
ESG Committee.
6. The ESG Committee evaluates activities

Board of Directors

Consult

ESG Implementation
Structure

ESG Committee

Respond/
Report

ESG Promotion Meeting
Committee of Managers for
ESG Promotion

Management Council

Group Business Strategy Meeting(Exective Corporate Officers)

Corporate Officersii) Risk Management
The process of identification, evaluation, and management of risks is as follows:
1. The Committee of Managers for ESG Promotion shall report quarterly to the ESG Promotion Meeting on the timing,
probability, and scope of impact of risks and opportunities for management.
2. The ESG Promotion Meeting aggregates the reported information into company-wide risks and opportunities and reports
them to the ESG Committee.
3. The ESG Committee evaluates the impact of risks and opportunities at the company-wide level, reviews them on a case-bycase basis, and reports to the Board of Directors from the ESG Promotion Meeting.
4. The reports are reflected in KPIs, and related departments respond to and manage risks based on these KPIs. The Board of
Directors integrates climate change-related risks into the Company's comprehensive risk management process by considering
the impact of climate change on the Company and society when making corporate decisions based on the reports from the
ESG Promotion Meeting.
(2) Efforts regarding climate change (disclosures based on TCFD recommendations)i) GovernanceFor governance regarding climate change, please refer to i) Governance in (1) Overall Sustainability Initiatives.
ii) Strategy
Our business risks and opportunities related to climate change are as follows[Risk]- Transition risk
Policies:

Risk of unexpected pandemics due to climate change, as well as drug price reductions that exceed
expectations due to the financial pressures on healthcare caused by an aging society with a declining

Market:birthrate.
Risk that climate change will cause a rise in raw material prices, which will lead to a rise in the cost of

Reputation:living for patients, thereby discouraging them from seeing a doctor.
Increase of stakeholder concerns due to delays in climate change action.

- Physical Risk
Chronic:
Acute:

Risk of increased operating expenses, such as higher manufacturing costs due to climate change
Risk of supply chain disruption due to extreme weather-related disasters[Opportunities]- Strengthening competitiveness against climate change-related increases in disease and changes in consumer preferences
leads to greater demand for products- Proactive initiatives to address climate change risks enhance operational sustainability and stakeholder evaluation, leading
to opportunities for share price appreciation- 10 -

Regarding risks, we have not identified any significant climate-related risks or other risks that would require large-scale
investments in the long term at this time. Still, we carefully consider countermeasures in close coordination within the industry.
As for opportunities, we have yet to identify any items in our pipeline that would significantly impact our business opportunities.
However, there may be business opportunities such as the spread of certain diseases due to rising temperatures. However, we arealways looking for new opportunities for our pipeline to contribute to the human health impact of climate change.
By implementing scenario analysis based on TCFD recommendations and identifying risks and opportunities, we will formulate
measures to respond to the risks and opportunities associated with climate change and strive to improve the resilience of ourbusiness in the face of climate change.
iii) Risk management
For risk management related to climate change, please refer to ii) Risk Management in (1) Overall Sustainability Initiatives.

iv) Scenario Analysis
We evaluated the potential impact on our business and the period of time until the impact occurs, using IEA (NZE) and IPCC
(AR6 SSP1-1.9) as 1.5°C warming scenarios and IPCC (AR6 SSP5-8.5) as 4°C warming scenarios, as follows.

- 11 -

4 ℃ warming scenario
Long-term

1.5 ℃ warming scenario

Affected
PeriodLong-term

4 ℃ warming scenario
Small

Business growth
may stagnate as
sales decline due
to drug pricereductions, which
will force thecompany toreduce R&D andcapitalexpenditures.

1.5 ℃ warming scenario

Risk ofunexpected
pandemics due
to climatechange, as
well as drug
price
reductions thatexceedexpectations
due to thefinancialpressures on
healthcare
caused by anaging society
with adecliningbirthrate

Potential impact

Small

Potential
Risks and
Opportunities

Policies

Category

Transition risks

Impact ontheCompany

Measures

ASKA Pharmaceutical isshifting its business to thecontinuous creation of
new drugs in specialty
fields, and even if NHI
drug prices are reduced
more than expected, theimpact is expected to beimmaterial because of thecompany's efforts to build
a foundation that can
respond to suchcircumstances.

Mid-term

Even if the core subsidiary
ASKA
Pharmaceutical experien
ced suppression of
medical examinations, we
believe that the impact
would be immaterial
because the demand for its
products would be
supported by thepromotion of women's
advancement in the fieldof obstetrics andgynecology, which is oneof its competitive fields,
and other factors thatoutweigh this.

Mid-term

As a member of society,
we recognize that climatechange countermeasures
are an urgent issue, andwe are actively promoting
ESG management to solve
social issues through ourbusiness, with a focus onenvironmental issues.
However, as efforts tolimit the temperature
increase beyond 4°C will
be expensive and timeconsuming, we willconsider taking actions toaccelerate the target by
2030.

Mid-term

Long-termLong-term
Mid-term

MediumSmall- 12 -

MediumRisk ofincrease inoperatingexpenses, suchasmanufacturingcosts due toclimatechangeThe risk ofchronic wind andflood damage
could increase,and operations
could bedisrupted due toinability to cometo work or
damage to
manufacturing
facilities.
Furthermore,damage tostorage facilities(raw materials,
products, etc.)
could cause adecline inrevenues.

MediumIncrease of
stakeholder
concerns due
to delays inclimatechange action

Although climatechange measures
are systematically
implemented,
they cannot keep
up with the actual
situation on eachoccasion, which
may lead to a lossof revenue due toa loss of trust
fromstakeholders.

Small

Decreased sales
due to a decreasein prescriptionsof ourpharmaceuticals
as a result of
reduced medical
examinations
may force us to
cut back on R&D
and capital
expenditures,
which could
stagnate businessgrowth.

MediumMarkets
Evaluation
Chronic risks

Physical risks

Risk thatclimatechange willcause a rise in
raw material
prices, which
will lead to arise in the costof living forpatients,
therebydiscouraging
them fromseeing adoctorWe experienced thedisaster at the Iwaki
Factory at the time of theGreat East Japan
Earthquake, and havetaken various measures
based on our thorough risk
management. We willcontinue our efforts tocreate an environment that
can handle unprecedented
situations.

Mid-term

Leveraging the experienceof the Iwaki Factory being
damaged in the Great East
Japan Earthquake, theCompany thereafter has
thoroughly implemented
risk management to havemultiple routes in all
situations. We willcontinue our efforts tocreate an environment that
can handle unprecedented
situations.

Long-term

We will continue to add
indications to existing
drugs and enhance ourlibrary of newcompounds, with a focus
on specialty fields.

Long-term

Mid-term
Long-termLong-term

MediumSmall
Small

Our climatechange initiatives
will contribute to
the creation of
corporate value
by earning thetrust ofcustomers,
retaining
employees,
improving our
reputation in
recruiting, andenhancing our
reputation with
ESG investors.

Medium

Proactive
initiatives toaddress
climatechange risksenhance
operationalsustainability
andstakeholder
evaluation,
leading toopportunities
for share priceappreciation

Small

Strengthening
competitivene
ss against
climatechange-related
increases indisease andchanges in
consumerpreferences
leads togreaterdemand for
products

Global warming
may change
disease trends
and cause
hormonal
imbalance, which
may increasedemand forexisting drugs(e.g., various
hormonepreparations) andpromote thedevelopment andmarketing of new
drugs, thereby
increasing
revenues.

Small

Acute risks
Opportunities

Risk of supply
chain
disruptions
due todisasterscaused by
extremeweather events

Unprecedented
severewindstorms andflooding could
cause difficulties
in securing raw
materials andother resources,
which could
result in a decline
in revenues.

We will strive to create
corporate value by
disclosing information to
stakeholders in a timely
and appropriate mav) Indicators and Targets
We monitor environmental performance indicators related to CO2 emissions, water pollution load, chemical substancemanagement, and amount of waste emissions. The production division undergoes annual verification by a third-party
organization on issues to be improved in relation to these indicators.
Scope 1 and 2 emissions (in t-CO2 )FY2022

FY2023

Scope 1

6,687

6,055

Scope 2

4,093

2,949

Scope 1 emissions are calculated directly by the Company and include CO2 emissions from the use of gasoline, kerosene, diesel- 13 -

oil, heavy oil, LPG, city gas, and cold and hot water.
For Scope 1 and 2 emissions, we use the Federation of Pharmaceutical Manufacturers' Associations of Japan's target of reducing
CO2 emissions in FY2030 by 46% from the FY2013 level (laboratories, plants, offices, and sales vehicles) as a benchmark forour reduction targets.
In April 2023, we introduced CO2-free electricity for part of the electricity to reduce CO2 emissions. In addition, a solar power
generation facility has begun to supply electricity in June 2024. Since FY2023, we have begun to reduce CO₂ emissions byusing non-fossil certificates for the equivalent amount of electricity used at our head office building.
Regarding energy conservation efforts, we will implement energy conservation measures to improve energy consumption perunit of production by 1% or more each year (the average rate of change in energy consumption per unit of production over the
past 5 years is 1% or more).
(3) Initiatives related to human capitali) Strategy[Policy on human resources development and internal environment development]
One of the strategies in the Medium-Term Management Plan is "human resource development to realize our growth strategy."
To enhance the expertise and generative power of each organization, we are making group-wide efforts to develop humanresources with the goals of "developing and acquiring human resources capable of responding to new businesses andenvironmental changes" and "creating an environment where diverse human resources, including female, career professionals,
and senior employees, can play an active role. We are working to develop human resources with the goals of "developing andacquiring human resources who can respond to new businesses and changes in the environment" and "creating an environment
in which diverse human resources, including female, career, and senior employees, can thrive.
We will continue to implement human resource policies, including the development of a healthy work environment in which thecharacteristics and abilities of each employee are fully utilized and diverse values are respected, as well as an education andtraining system that responds to their desire to learn autonomously.
*For the latest information, please check the website of ASKA Pharmaceutical Holdings Co., Ltd.
https://www.aska-pharma-hd.co.jp/csr/social/labor_practices.htmlii) Indicators and Targets
ASKA Pharmaceutical Co., Ltd., a major consolidated subsidiary, is working to maximize the capabilities of its human capitalto achieve the ideal organizational image it aims for. By setting forth the following four elements as the model human resources,
we are working on the measures and environmental improvements to develop human resources that possess these elements. We
aim to create value for the organization by having a diverse workforce, regardless of age or attributes, willing to pursue diverse
careers, grow, and acquire knowledge and skills on their initiative.

1. Human Resources Development
While accelerating changes in the business environment surrounding companies and individuals, the Group recognizes thelinkage between management and human resource strategies as essential for companies to sustainably enhance value.

- 14 -

Therefore, we regard human resources as the crucial element among management resources, as capital to maximize individual
abilities and link them to "value creation."
To realize the growth strategy set forth in the Medium-Term Management Plan that started in FY2021, a major consolidated
subsidiary, ASKA Pharmaceutical Co., Ltd., introduced a personnel system in April 2021 with the aim of maximizing humancapital.
Under the personnel system, as measures to strongly promote the achievement of the Medium-Term Management Plan, a role
grading system, role transition rules, a single rate system for all grades, and the establishment of evaluation meetings havebeen introduced and are being operated in a constant effort to optimize the personnel system.
We also create opportunities for autonomous learning, aiming to see employees themselves desire to grow and acquire
knowledge and skills.
2. Education and Training
Our Group promotes the development of an environment that responds to the individual's desire to learn autonomously andsupports their growth. We have established an education and training system for the creation of new value, aiming to create
an organization in which each individual has a diverse career aspiration, desires to grow, and acquires knowledge and skillson their own and in which diverse human resources, regardless of age or attributes, can play an active role.
In this context, our major consolidated subsidiary, ASKA Pharmaceutical Co., Ltd., promotes proactive career challenges by
its employees. It is working to revitalize the organization by fostering career awareness and strengthening cross-departmental
human resource collaboration through career self-assessment, internal recruitment systems, strategic job rotation measures,
etc.
a. Education and training system‐ In addition to company-wide mandatory training and position-based training, we are actively introducing elective training(business skill elective training, external seminars, e-learning, and correspondence courses) to flexibly respond to thechanging needs of each department and individual.
‐ We have also introduced age-specific career design training, selective training for female employees, and pre-transition
training for elders to promote the success of our diverse human resources.
‐ In FY2023, we launched the APPLE Program*1, a selective training program conducted throughout the fiscal year todevelop the next generation of management leaders responsible for our Group's future.
‐ In FY2024, we launched the GRAPE Program*2, a global human resources development program designed to develop
human resources who will lead globalization at an early stage.
*1 Aska Pharma-HD Premium Leadership-skill Education Program*2 Global Representative of Aska Pharma-HD Education Program*For more information on the education and training system, please refer to the website of ASKA Pharmaceutical Holdings
Co., Ltd.
https://www.aska-pharma-hd.co.jp/english/csr/social/labor_practices.html
b. Education and Training Achievements*For information on education and training, please refer to the website of ASKA Pharmaceutical Holdings Co., Ltd.
https://www.aska-pharma-hd.co.jp/english/csr/esg_data/→ESG Chart and ESG Data Book (Social - Education and Training, etc.)
3. Diversity (D&I)
We believe that respecting diverse values is important for sustainable growth and enhancement of corporate value. We havecreated a work environment in which all employees, regardless of age or attributes, can play an active role.
a. Promotion of women's activities
ASKA Pharmaceutical Co., Ltd. submitted the General Employer Action Plan under the Act on the Promotion of Women's
Participation and Advancement in the Workplace. The goals and progress are as follows.
[Target]- Achieve a ratio of 15% of female managers by the end of March 2025.
- Achieve a 30% ratio of female candidates for management positions by the end of March 2025.
- The rate of male employees taking childcare leave will be at least 100.0% from FY2023 onward.

- 15 -

Progress in FY2023
FY2019FY2020

FY2021

FY2022

FY2023

6.6

6.5

7.1

9.9

11.4

13.6

18.1

23.7

20.8

23.0

28.3

29.4

30.4

32.9

32.7

100.0

100.0

100.0

100.0

100.0

50.0

45.5

45.5

94.7

100.0

Ratio of female managers (%)
Ratio of female candidates for
management positions (%)
Percentage of female employees (%)
Percentage of women taking childcare
leave (%)
Male childcare leave acquisition rate (%)

Ratio of female non-regular employees: 47.0% Ratio of female new graduates: 63.6%*Data as of March 31, 2024 of ASKA Pharmaceutical Co., Ltd.
b. Diversity Initiatives[I] Company Overview 5. Employees (4) Percentage of female workers in management positions, Percentage of maleworkers taking childcare leave, and Wage differentials between male and female workers [Supplementary Data] ASKA
Pharmaceutical Co., Ltd. data b. Status of hiring and leaving of employees
4. Support for the development of the next generation
We consider the development of an environment in which children, who will be responsible for the next generation, are bornand raised in good health as one of the issues that companies should address. We are promoting efforts to balance work andchild rearing.
ASKA Pharmaceutical Co., Ltd. submitted the General Employer Action Plan under the Act on Advancement of Measures to
Support Raising Next-Generation Children. The goals and progress are as follows.
- Percentage of male employees taking maternity leave[Target rate] 100.0% or more
[Progress in FY2023] 100.0%*Data as of March 31, 2024 of ASKA Pharmaceutical Co., Ltd.
In recognition of our efforts to support the development of the next generation, we have been selected for "Kurumin
Certification," an accreditation system by the Minister of Health, Labour and Welfare since FY2022.
5. Employment of People with Disabilities
In order to realize an environment in which people with disabilities can work with vigor and enthusiasm, our Group promotes
the development of an environment in which people with disabilities can work stably and in accordance with their wishes andabilities.
- Employment Rate of People with Disabilities
Status of ASKA Pharmaceutical Co., Ltd. based on the Act to Facilitate the Employment of Persons with Disabilities[Target] 2.3%
[Employment rate in FY2023] 2.5%.
*Data as of March 31, 2024 of ASKA Pharmaceutical Co., Ltd.
6. Occupational Health and Safety
The Group promotes safety and health activities at each of its business sites in accordance with ASKA Pharmaceutical Safety
and Health Basic Policy. We are actively working to ensure employee safety, prevent occupational accidents, maintain andpromote physical and mental health, and create a comfortable work environment.
- ASKA Pharmaceutical Safety and Health Basic Policy
https://www.aska-pharma-hd.co.jp/english/csr/social/labor_practices.html
7. Health Management
The Group promotes health management from various angles so that employees, the organization, and society can mutuallyshare the valuable happiness of "health.” Our goal is not only to manage the health of our employees but also to enhance their- 16 -

physical and mental well-being, promote their autonomous growth, and further improve the organization's productivity andcreativity.
- External Evaluation of Health Management
With the Senior Managing Member of the Board of Directors, Representative Director in charge of health promotion, theCompany has been certified as a White 500 Health & Productivity Management Outstanding Organizations Recognition
Program for 6 consecutive years since 2018, thanks to numerous initiatives related to health management.
*ASKA Pharmaceutical Co., Ltd. is certified alone from FY2018 to FY2020, and the ASKA Pharmaceutical Holdings Co.,
Ltd. Group is certified from FY2021 to FY2023.
- Health Management Initiatives of ASKA Pharmaceutical Holdings Co., Ltd.
https://www.aska-pharma-hd.co.jp/english/csr/social/health.html
8. In-house Award System
The Group President presents awards to all Group companies for various challenges and achievements, including cultural andsocial contributions, to foster a sense of unity and increase motivation within the Group (Group Award System).
In addition, each group company has a system in which the president personally presents awards to employees to honor theirachievements, reward their efforts and motivate them to continue to work hard.
9. Opportunities for dialogue between employees and management
The Group actively provides opportunities for all employees, including Board members, to engage in dialogue withmanagement to create an organization where diverse values are mutually respected, where a variety of opinions are exchanged,
and where the best solutions and innovations are generated. ASKA Pharmaceutical Co., Ltd., the major consolidated
subsidiary, regularly holds town hall meetings, round table meetings, and other opportunities for dialogue between employees
and top management (Chairman, Vice Chairman, and President). The purpose of these meetings is to further shorten the
distance between employees and top management and to enhance work engagement (vitality, enthusiasm, and immersion) by
having top management directly listen to the thoughts and opinions of employees and at the same time convey ASKA
Pharmaceutical's significance of existence and aspirations.
(FY2023 results)
Number of dialogue heldTime

74 times

110.5 hours

Dialogue between employees and top
management*For more information on opportunities for dialogue with management, please refer to the website of ASKA Pharmaceutical
Holdings Co., Ltd.
https://www.aska-pharma-hd.co.jp/english/csr/social/labor_practices.html
Work engagement (deviation)
FY2021

FY2022

FY2023

53.7

53.7

54.3

*Note: Deviation values are calculated based on 81 companies and organizations that introduced the work engagement survey,
which was commissioned by the survey contractor.
10. Enhancement of Compliance Promotion Systema. Compliance Promotion System
The Group has established a department to promote and support compliance at each Group company. It has built a system
to ensure that officers and employees can engage in corporate activities with peace of mind through the establishment ofnecessary internal systems and regulations, prompt resolution of related issues, and the formulation of measures to prevent
violations.
In light of recent scandals in the manufacturing process in the pharmaceutical industry, the Group's reliability assurance andmanufacturing divisions are working together to ensure GMP compliance.
*For details on the compliance system, please refer to the website of ASKA Pharmaceutical Holdings Co., Ltd.
https://www.aska-pharma-hd.co.jp/english/invest/governance/compliance.html- 17 -

3. Business and Other Risks
Matters related to business conditions, accounting conditions, etc., described in the Annual Securities Report that may have a material
effect on investors' decisions include the following risks. Forward-looking statements in the text are based on the judgment of theGroup as of the end of the current consolidated fiscal year.
(1) Risks Related to Research and Development
Research and development of pharmaceuticals requires a large amount of money and many years. Still, the probability that it
will result in the creation of a new product or technology is not high. If the expected efficacy of a drug currently underdevelopment cannot be proven, or if a safety issue becomes apparent, the Group may have to abandon the development of the
drug. In such cases, depending on the drug under development, there may be a significant impact on the Group's businessperformance and financial position.
(2) Risks Related to Side Effects
Pharmaceuticals are approved and marketed only after adequate safety testing and rigorous reviews. However, if, after marketing,new side effects are discovered that were not anticipated at the time of launch and the product must be discontinued or recalled,
this could have a significant impact on the Group's business performance and financial position.
(3) Risks Related to Legal and Institutional Reforms
Prescription pharmaceutical products, which account for the majority of the Group's sales, are subject to various regulations by
the pharmaceutical affairs administration. Trends in NHI drug price standard revisions and other administrative measures related
to the medical care system and health insurance may have a significant impact on the Group's business performance and financial
position.
(4) Risks Related to Intellectual Property Rights
The Group's business is protected by a number of patents. The Group appropriately manages its patents and other intellectual
property rights and takes precautions against infringement by third parties. However, if a third party infringes the intellectual
property rights held by the Group, the Group may lose expected profits. In addition, if the Group's business activities infringe ona third party's intellectual property rights, the Group's business activities may lead to disputes or the discontinuation of therelevant business, which may have a significant impact on the Group's business performance and financial position.
(5) Risks Related to Alliances with Other Companies
The Group collaborates with other companies in research, development, and manufacturing to conduct joint research, outlicensing / in-licensing of products, contract manufacturing, etc. However, in the event of a change or termination of contracts
for some reason, or in the event of business integration, organizational changes, changes in management policies, or changes inshareholders of the partner companies, our Group's business performance and financial position may be significantly affected.
(6) Risks Related to Manufacturing and Stable Supply
In the event that the supply of pharmaceutical products is suspended or significantly slowed down owing to the occurrence oftechnical or legal problems or shutdowns caused by fire or other disasters at the manufacturing or distribution facilities of theGroup or its business partners, this could have a significant impact on the Group's business performance and financial position.
(7) Relationship with Specific Business Partners
The Group's top business partner accounts for approximately 90% of the Group's sales. We intend to continue to do businesswith this Company in the future, but in the unlikely event of a major change in the business relationship, it could have a significant
impact on the Group's business performance and financial position.
(8) Risks Related to Large-Scale Disasters, etc.
The Group promotes developing a disaster management system and a business continuity plan (BCP). However, in the event ofa large-scale disaster, accident, or pandemic that exceeds expectations and damages the Group's head office, factory, research
center, or business sites, or causes stagnation or suspension of business activities, the Group's business performance and financial
position could be significantly affected.
The spread of COVID-19 that has manifested itself since January 2020, continues to be reported in increasing numbers
worldwide. To prevent the spread of infection, the Group implements efficient business operations, including thorough hygiene
management, staggered work hours, and telecommuting. However, if the infection spreads further than expected or the situation- 18 -

persists for a long period, the Group's business performance and financial position could be significantly affected owing to thesuspension of operations or stagnation of the supply chain due to employee infection.
(9) Risks Related to Litigation
In the course of its business activities, the Group may be subject to lawsuits related to the side effects of pharmaceuticals, productliability, labor issues, fair trade, and other issues. This could have a significant impact on the Group's business performance andfinancial position.
(10) Risks Related to Information Security and Information Management
Since the Group uses various information systems, system failures, computer viruses, and other problems could disrupt
operations. In addition, the Group holds a great deal of confidential information, including personal data, which, if leaked outside
the Group, could have a significant impact on the Group's business performance and financial position due to compensation fordamages, administrative penalties, or damage to public trust.
There are various other risks besides those mentioned above, and those listed here do not represent all the risks of our Group.

4. Analysis of Financial Position, Operating Results, and Cash Flows by Management(1) Summary of Business Performance
The following is a summary of the financial position, operating results, and cash flows (hereinafter referred to as "operating results,
etc.") of our Group (the Company, consolidated subsidiaries, and associates accounted for using equity method) for the current
consolidated fiscal year.
i) Operating results
During the consolidated fiscal year under review, the Japanese economy showed signs of recovery, evidenced by thenormalization of social activities. However, the business environment remained uncertain due to an increasingly tenseinternational situation, as well as inflation, financial instability caused by higher policy interest rates in Europe and the UnitedStates, and significant fluctuations in the exchange market. In the pharmaceutical business, the core of the Group, despite thechallenging business environment which was impacted by the annual NHI drug price revisions and other factors, the Group'sbusiness continued to be as strong as it was in the previous fiscal year due to the growth of new products and other factors.
Operating Results during the consolidated fiscal year are described below.
FY2022(Millions of yen)

FY2023(Millions of yen)

ActualGrowth(Millions of yen)(%)

Net sales

60,461

62,843

2,381

3.9%

Operating profit

5,108

6,500

1,392

27.3%

Ordinary profit

5,232

6,522

1,289

24.6%

Profit attributable toowners of parent

4,238

7,545

3,307

78.0%

The Group’s net sales in the consolidated fiscal year under review were 62,843 million yen, up 2,381 million yen year on year
(YoY). This was due mainly to growth in the pharmaceutical business driven by the growth in obstetrics and gynecologicalproducts. Cost of sales was 32,178 million yen, and cost of sales ratio was down 1.5% YoY, resulting in an increase of 2,079
million yen in gross profit YoY to 30,664 million yen. At the same time, selling, general and administrative expenses rose by 687
million yen YoY to 24,164 million yen. As a result, operating profit was up 1,392 million yen YoY to 6,500 million yen, for aratio of operating profit to net sales of 10.3%. Ordinary profit was 6,522 million yen, after recording 414 million yen in nonoperating income and 392 million yen in non-operating expenses. While the Company recorded 3,340 million yen during theperiod in extraordinary income associated with sale of investment securities, profit attributable to owners of parent was up 3,307
million yen YoY to 7,545 million yen.
In addition, ASKA Pharmaceutical Co., Ltd. a subsidiary of the Company, has executed a capital increase agreement to issue
new shares of its equity method affiliate, Ha Tay Pharmaceutical Joint Stock Company, with the aim of strengthening thepartnership between the two companies.

- 19 -

Business results by segment are described below.
[Pharmaceutical business]
The pharmaceutical business, which focuses on the three fields: internal medicine, obstetrics and gynecology, and urology,
showed favorable trends overall, despite the impact of the periodical NHI drug price revisions. A look at results by productshows that the results in the field of obstetrics and gynecology were driven by the large-scale growth in the uterine fibroid andendometriosis agent RELUMINA (relugolix), to 9,906 million yen (up 12.1% YoY), and the dysmenorrhea agent DroEthi(drospirenone/ ethinylestradiol), which went on sale in June 2022, largely drove performance with sales of 6,125 million yen(up 66.3% YoY). Sales also grew in the internal medicine area, as sales of the thyroid hormone agent THYRADIN(levothyroxine), our main product in this field, grew to 7,862 million yen (up 1.7% YoY) and those of the poorly absorbablerifamycin antimicrobial agent RIFXIMA (rifaximin) to 5,864 million yen (up 8.7% YoY). In the urology field, sales of the LHRH derivative microcapsule sustained-release agent LEUPRORELIN (leuprorelin) were 4,430 million yen (down 11.4% YoY).
As a result of the above factors, the segment sales were 56,016 million yen (up 4.5% YoY), and segment profit was 7,647
million yen (up 32.3% YoY).
[Animal health business]
Sales of the animal health business, which sells products such as veterinary pharmaceuticals and feed additives, were 6,664
million yen (up 0.0% YoY). However, the segment profit was 195 million yen (down 52.3% YoY) due to rising costs of raw
materials and other items.
[Other businesses]
Sales of other businesses, which include clinical testing, medical devices, were 162 million yen (down 26.3% YoY).
Segment loss was 125 million yen (vs. a loss of 6 million yen in the same period of the previous year).
ii) Financial Position[Assets]
Total assets at the end of the consolidated fiscal year under review stood at 90,745 million yen, up 3,607 million yen from theend of the previous consolidated fiscal year. This figure was due primarily to increases in merchandise and finished goods, andinvestment securities, despite a decrease in distributorship.
[Liabilities]
Total liabilities at the end of the consolidated fiscal year under review stood at 28,815 million yen, down 3,789 million yen
from the end of the previous consolidated fiscal year. This figure was due primarily to decreases in retirement benefit liability
and long-term borrowings (including current portion of long-term borrowings).
[Net assets]
Total assets at the end of the consolidated fiscal year under review stood at 61,930 million yen, up 7,396 million yen from theend of the consolidated fiscal previous year. This figure was due primarily to an increase in retained earnings resulting from therecording of profit attributable to owners of parent.
The resulting equity ratio was 68.2%, up 5.6 percentage points from the end of the previous consolidated fiscal year.
iii) Cash Flow Position
The balance of cash and cash equivalents at the end of the current consolidated fiscal year stood at 16,738 million yen, down 766
million yen from the end of the previous consolidated fiscal year
The standing of each type of cash flow for the current fiscal year, and major contributing factors of each, are summarized below.
[Cash flows from operating activities]
Net cash provided by operating activities was 1,486 million yen (vs. a gain of 3,351 million yen in the same period of the previousyear), due mainly to the recording of profit before income taxes, despite a decrease in retirement benefit liability.
[Cash flows from investing activities]
Net cash provided by investing activities was 1,706 million yen (vs. a loss of 1,126 million yen in the same period of the previousyear). This was due mainly to sales of investment securities.

- 20 -

[Cash flows from financing activities]
Net cash used in financing activities was 3,943 million yen (vs. a loss of 1,820 million yen in the same period of the previousyear). This was due mainly to repayments of long-term borrowings.
iv) Production, Orders Received and Sales
Effective from the current consolidated fiscal year, the Company has changed the classification method of its reportablesegments, and the percentage change is based on the classification method after the change.
a. Production results
The table below shows production performance by segment in the current consolidated fiscal year.
Segment

Fiscal year ended March 31, 2024

YoY (%)

Pharmaceutical business (Millions of yen)

16,276

105.6

Animal health business (Millions of yen)

788

160.5

Total (Millions of yen)

17,064

107.3

Note: Amounts are based on manufacturing costs.
b. Actual purchase of merchandise
The table below shows merchandise purchase results by segment in the current consolidated fiscal year.
Segment

Fiscal year ended March 31, 2024

YoY (%)

Pharmaceutical business (Millions of yen)

10,428

112.2

Animal health business (Millions of yen)

5,581

105.9

35

113.1

16,044

109.9

Others (Millions of yen)
Total (Millions of yen)

Note: Amounts are based on purchase prices, and inter-segment transactions are offset and eliminated.
c. Orders Received
The Group does not make products on a build-to-order basis; it makes production plans based on sales plans and inventory
status.
d. SalesThe table below shows sales results by segment for the current fiscal year.
Segment

Fiscal year ended March 31, 2024

YoY (%)

Pharmaceutical business (Millions of yen)

56,016

104.5

Animal health business (Millions of yen)

6,664

100.0

162

73.7

62,843103.9

Others (Millions of yen)
Total (Millions of yen)
Notes:
1. Inter-segment transactions are offset and eliminated.

2. Sales results by major customer and the ratio of such sales results to total sales results for the 2 most recent consolidated fiscal years
are as follows.

Counterpart

Fiscal year ended March 31, 2023
Amount(Millions of yen)

Takeda Pharmaceutical Company
Limited

Percentage(%)

52,29386.5- 21 -

Fiscal year ended March 31, 2024
Amount(Millions of yen)
54,564

Percentage
(%)
86.8

(2) Analysis and Discussion of Operating Results from Management's Perspective
The following is a summary of the recognition, analysis and discussion of the Group's operating results from the management's
perspective.
Forward-looking statements in the text are based on judgments made as of the end of the current fiscal year.
i) Recognition, Analysis and Discussion of Financial Position and Operating Resultsa. Analysis of Financial Position
For an analysis of financial conditions in the current consolidated fiscal year, please refer to "[II] Business Overview, 4.
Analysis of Financial Position, Operating Results, and Cash Flows by Management, (1) Summary of Business performance,ii) Financial Position”.
b. Analysis of Operating Results
Consolidated net sales of the Group for the current fiscal year increased by 2,381 million yen from the previous fiscal year to62,843 million yen (up 3.9% YoY). This was mainly due to the strong overall performance of the pharmaceutical business,
which focuses on the three fields of internal medicine, obstetrics and gynecology, and urology, despite the impact of theperiodical NHI drug price revisions. The sales of the uterine fibroid and endometriosis agent RELUMINA (relugolix) increased
to 9,906 million yen (up 12.1% YoY), and the dysmenorrhea agent DroEthi (drospirenone/ethinylestradiol), which waslaunched in June 2022, achieved sales of 6,125 million yen (up 66.3% YoY), contributing to the overall pharmaceuticalbusiness net sales of 56,016 million yen (up 4.5% YoY).
Cost of sales increased by 301 million yen from the previous consolidated fiscal year to 32,178 million yen (up 0.9% YoY).
The cost to sales ratio was 51.2% (1.5% improved YoY). This was mainly due to the contribution of an improved product mix
resulting from growth in sales of brand-name drugs such as RELUMINA (relugolix), THYRADIN (levothyroxine), and
RIFXIMA (rifaximin). As a result, gross profit increased by 2,079 million yen from the previous consolidated fiscal year to30,664 million yen (up 7.3% YoY).
Selling, general and administrative expenses increased by 687 million yen from the previous fiscal year to 24,164 million yen(up 2.9% YoY). This was mainly due to an increase in R&D expenses caused by progress in R&D despite a decrease indepreciation.
As a result, operating profit increased by 1,392 million yen from the previous fiscal year to 6,500 million yen (up 27.3% YoY).
Non-operating income decreased by 18 million yen from the previous consolidated fiscal year to 414 million yen (down 4.3%
YoY). Non-operating expenses increased by 84 million yen from the previous consolidated fiscal year to 392 million yen (up27.3% YoY). As a result, Ordinary profit increased by 1,289 million yen from the previous consolidated fiscal year to 6,522
million yen (up 24.6% YoY).
Extraordinary income increased by 3,215 million yen from the previous consolidated fiscal year to 3,340 million yen (up2,583.7% YoY). This was due to a gain in sales of investment securities resulting from the sale of some cross-holding shares.
Total amount of income taxes - current and income taxes-deferred increased by 1,198 million yen from the previous fiscal
year to 2,316 million yen (up 107.1% YoY). As a result, Profit attributable to owners of parent increased by 3,307 million yen
from the previous consolidated fiscal year to 7,545 million yen (up 78.0% YoY).
ii) Analysis and discussion of the status of cash flows and information related to the financial resources of capital and theliquidity of funds
a. Analysis of cash flows
For an analysis of financial conditions in the current consolidated fiscal year, please refer to "[II] Business Overview, 4.
Analysis of Financial Position, Operating Results, and Cash Flows by Management, (1) Summary of Business performance,iii) Cash Flow Position."b. Analysis of capital resources and liquidity of funds
The Group's basic policy is to secure stable funds necessary for the maintenance and expansion of its business activities andto raise funds in response to demand for funds.
The Group's working capital requirements are mainly for operating expenses such as product manufacturing costs, productpurchases, and selling, general and administrative expenses such as R&D and sales promotion expenses. Long-term capitalneeds mainly include capital expenditures for production and R&D, as well as investments to expand the development pipeline.
Working capital requirements are based on cash on hand and short-term borrowings from correspondent financial institutions,while long-term capital requirements are based on cash on hand and long-term borrowings from correspondent financial
institutions.

- 22 -

Regarding the liquidity of funds, in addition to cash and cash equivalents, the Company has entered into commitment line
agreements with correspondent financial institutions to secure liquidity.
The balance of loans payable at the end of the current fiscal year was 9,485 million yen (down 24.9% YoY), a decrease of
3,138 million yen from the end of the previous fiscal year. Cash and cash equivalents decreased 766 million yen to 16,738
million yen (down 4.4% YoY) in the current consolidated fiscal year.
iii) Significant accounting policies and estimates
The consolidated financial statements of the Group are prepared in accordance with accounting principles generally acceptedin Japan. In preparing these consolidated financial statements, estimates considered necessary are made based on reasonable
standards, taking into consideration past results and current conditions, etc. However, actual results may differ due touncertainties in estimates, etc.
Significant accounting estimates used in the preparation of the consolidated financial statements and the assumptions used in
making such estimates are described in “[V] Financial Information, 1. Consolidated Financial Statements, (1) Consolidated
Financial Statements, Notes”.
iv) Management policies and strategies, objective indicators for judging the achievement of management goals, etc.
The Group has formulated a Medium-Term Management Plan that covers the period from April 2021 to the end of March 2026.
In FY2025, the plan's final year, we target net sales of 70 billion yen, Operating profit rate of 8%, and Profit attributable toowners of parent/equity (ROE) of 8%.
We will continue to promote initiatives to achieve our goals based on the Medium-Term Management Plan as described in "[II]Business Overview, 1. Management Policy, Business Environment, and Issues to be Addressed, etc. (3) Medium to long term
management strategies and issues to be addressed by the Company”.

- 23 -

5. Material Business Agreements, etc.
(1) Out-licensing of Technology
Contracting company

ASKA PharmaceuticalCo., Ltd.

ASKA PharmaceuticalCo., Ltd.

Counterparty

KYORIN
PharmaceuticalCo., Ltd.

HYUNDAIPHARM. CO.,LTD

Country

Japan

Korea

Contracted items

Contents of contract

Contract period

AKP-009 (dysuria
associated withbenign prostatic
hyperplasia agent)

Licensing ofdevelopment andmarketing rights inJapan

2 years from the date ofconclusion of theagreement to the date on
which the generic drug
is first listed on the NHI
drug price list or 10
years after the launch of
the pharmaceutical,
whichever is later.

SLINDA (oralcontraceptive)

Exclusive license forimport, research anddevelopment,
application for approval,
distribution, and sales ofthe subject product inKorea

10 years from the dateof marketing
authorization /automatically renewedfor 2 years thereafter.

Note: The above technology licensing agreements include upfront payments and royalty payments of a certain percentage.
(2) In-licensing of Technology
Contracting company

ASKA PharmaceuticalCo., Ltd.

ASKA PharmaceuticalCo., Ltd.

ASKA PharmaceuticalCo., Ltd.

ASKA PharmaceuticalCo., Ltd.

Counterparty

Viatris Inc.

Alfasigma
S.p.A.

TesoRx Pharma,
LLC.

TakedaPharmaceutical
Company
LimitedCountry

USA

Italy

USA

Japan

Contracted items

Contents of contract

Contract period

Hyperlipidemia
agent

Granting ofdevelopment,
manufacturing andmarketing rights

From April 1991, theexpiration date of 10
years from the date of
NHI price listing of thelast licensed item.

Non-absorbableantibiotics

Granting ofdevelopment,
manufacturing andmarketing rights

From April 2010, 10
years from the lastpermit or patent
expiration date,
whichever occurs later.

Oral testosterone
agent

Granting option rights
for development andmarketing rights inJapan and Southeast
Asian countries

From December 2016
when the option right is
not exercised or when
the license agreement issigned, whicheveroccurs first.

Pharmaceuticaldrugs for humanuse containing
Relugolix for thetreatment of uterine
fibroids andendometriosis(Relugolix single agent)
Uterine fibroids:
Exclusive marketingrightsEndometriosis:
exclusive development
rights and exclusive
marketing rights(Relugolix combinationtablet)Uterine fibroids:
Exclusive development
rights and exclusive
marketing rights
Endometriosis:
exclusive development
rights and exclusive
marketing rights

From the contract dateuntil the expiration of 2
years from the later of(1) the date of final
determination of
expiration/expiration/in
validation of this patentin its entirety or (2) thedate of approval of ageneric drug of thisproduct.

- 24 -

Contracting company

Counterparty

Country

Contracted items

Contents of contract

Contract period

Japan

Pharmaceuticaldrugs for humanuse containing
pyridoxamine
dihydrochloride forthe treatment ofpremenstrual mooddiscomfort
syndrome andpremenstrual
tension withneurologicalsymptoms

Granting option rights
for development andmarketing rights

From December 2019
when the option right is
not exercised or when
the license agreement issigned, whicheveroccurs first.

Exclusive development
and marketing rights inJapan and Korea

15 years counting fromthe date when the
manufacturing approval
was first granted.

Joint R&D and
exclusive marketingrights in Japan

From the launch of thedigital therapeutics until
the end of the 10th
fiscal year

ASKA PharmaceuticalCo., Ltd.

Renascience
Inc.

ASKA PharmaceuticalCo., Ltd.

Insud Pharma
Group

Spain

Oral drospirenone
agent

ASKA PharmaceuticalCo., Ltd.

SUSMED, Inc.

Japan

Digital therapeutics
in the field ofobstetrics andgynecology

Note: The above technology introduction contracts include certain amounts of contractual payments and royalties.

(3) Sales contracts
Contracting company

Counterparty

Country

Contracted items

Contents of contract

Contract period

ASKA PharmaceuticalCo., Ltd.

KAKEN
PHARMACEU
TICAL CO.,
LTD.

Japan

Improved
Fenofibrate agent

Granting of marketingrightsPeriod sold sinceNovember 2011.

ASKA PharmaceuticalCo., Ltd.

TakedaPharmaceutical
Company
LimitedJapan

Pharmaceuticaldrugs

Granting of marketingrights

Until the end of March,
2032, and automaticallyrenewed every year
thereafter.

ASKA PharmaceuticalCo., Ltd.

TakedaPharmaceutical
Company
LimitedJapan

Candesartan
Cilexetil(Sustained
angiotensin II
receptor blocker)

Licensee forcommercialization of
authorized generic in
Japan

From May 2014 until
the end of sales of
eligible products.

ASKA Animal HealthCo., Ltd.

ECO Animal
Health Ltd,ECOPHARMA
LIMITED

UK
Japan

Veterinary
pharmaceuticals

Licensee of marketingrightsFrom November 2008
until terminated orcanceled in accordancewith regulations.

ASKA Animal HealthCo., Ltd.

Ceva Santé
AnimaleFranceVeterinary
pharmaceuticals

exclusive marketing
agreement

7 years starting May
2019, automaticallyrenewed every two
years thereafter.

ASKA Animal HealthCo., Ltd.

Huvepharma®

ASKA Animal HealthCo., Ltd.

Bussan Animal
Health Co., Ltd.

Bulgaria

Feed additives

Licensee of marketingrights3 years after designation
as a feed additive(market launch) from
December 2012,
automatically renewed
annually thereafter.

Japan

Veterinary
pharmaceuticals
THYLOBLOCKTABLETS

Licensing of marketingrights5 years starting
November 2019,
automatically renewed
annually thereafter.

- 25 -

Contracting company
ASKA PharmaceuticalCo., Ltd.

ASKA PharmaceuticalCo., Ltd.

Counterparty

Medis ehf.

TakedaPharmaceutical
Company
Limited

ASKA PharmaceuticalCo., Ltd.

TakedaPharmaceutical
Company
Limited

ASKA PharmaceuticalCo., Ltd.

NobelpharmaCo., Ltd.

ASKA PharmaceuticalCo., Ltd.

Sumitomo
Bakelite Co.,
Ltd.

ASKA PharmaceuticalCo., Ltd.

Laboratoires
HRA Pharma

ASKA PharmaceuticalCo., Ltd.

TORIIPHARMACEU
TICALCO.,LTD.

ASKA PharmaceuticalCo., Ltd.

Toray
Industries, Inc.

Country

Contracted items

Contents of contract

Contract period

IcelandProgesterone
VaginalLicensee ofdevelopment andSuppositories

marketing rights

10 years from December
2014, automaticallyrenewed every 2 years
thereafter.

Japan

UNISIA
Combination
Tablets(Fixed-dose
combination ofcandesartan
cilexetil andamlodipine
besilate)

Licensee forcommercialization of
authorized generic in
Japan

From August 2015 until
the end of sales of thesubject product.

Japan

CADETHIA
Combination
Tablets(Fixed-dose
combination ofcandesartan
cilexetil andhydrochlorothiazide)

Licensee forcommercialization of
authorized generic in
Japan

From February 2016
until the end of sales ofthe subject product.

Japan

Obstetrics andgynecology drugs(NPC-16, etc.)

Licensee of copromotion rights andconsignment of
manufacturing

Subject to the contract
term of the subject
pharmaceutical.

In vitro diagnostic
drug chlamydia
antigen kit "Rapid
SP <Chlamydia,
Gonorrhea>

Granting of copromotion right

From December 25,
2023 to March 31, 2026

Japan

FranceOral emergency
contraceptive

Licensee of marketingrightsTermination upon 3months' notice from the
HRA or December 31,
2024, whichever occurs
first.

Japan

Iron deficiency
anemia agent

Granting of copromotion right

4 years after theindication for irondeficiency anemia wasadded to the agent.

Japan

Adhesion barriermaterial（TRM270)

Business collaborationagreement

From September 27,
2021 to the date thispatent expires in its
entirety.

Note: The above sales contracts include certain amounts of contractual payments and royalties.
(4) Joint ventures through manufacturing consignment contracts, etc.
Contracting company

Contents

Joint venture

Date of establishment

Omnicare Drugs India
Private Limited and
New Medica Life
Sciences

Construction of pharmaceutical manufacturing
facilities and manufacturing of pharmaceuticalproducts in India

NeoASKA Pharma
Private Limited

October 3, 2018

- 26 -

(5) Share transfer agreement
Contracting company

Counterparty

Country

Contents of contract

Date of contract

ASKA PharmaceuticalCo., Ltd.

Ha Tay Pharmaceutical
Joint Stock Company

VietnamInvestment in Ha Tay Pharmaceutical Joint
Stock Company for strategic partnership in thepharmaceutical business in Southeast Asia

August 18, 2020

6. Research and Development Activities
The Company conducted research and development including progress on drug discovery research and clinical development centeredon the internal medicine, obstetrics and gynecology, and urology areas that are the three core businesses of ASKA PharmaceuticalCo., Ltd. along with proactive deployment of introduction and derivation activities and business alliance strategies.
In the area of clinical development, L-105 (rifaximin) received approval for partial change of the manufacturing and marketing
approval for the pediatric indication for the improvement of hyperammonemia in hepatic encephalopathy in March 2024. Furthermore,
preparations are in process to file for manufacturing and marketing approval for LF111 (drospirenone), which is under development
for the indication of contraception, during the first quarter of FY2024. Three clinical trials are underway. AKP-009 (ludaterone), now
under joint development with Kyorin Pharmaceutical Co., Ltd., is in Phase II trial stage and an additional Phase I trial is underway.
Phase III trials for TRM-270 (adhesion barrier material), which is under joint development with Toray Industries, Inc., are underway.
The trials are focused on the fields of gastroenterology, and obstetrics and gynecology. A Phase I/II study of AKP-022 (relugolix
combination tablets) was initiated in July 2023. In terms of licensing and alliance activities, ASKA Pharmaceutical Co., Ltd. signed
an agreement with SUSMED, Inc. for joint research, development, and post-launch marketing of therapeutic apps in obstetrics andgynecology in September 2023. Moreover, ASKA Pharmaceutical and Red Arrow Therapeutics have signed a joint research agreement
to develop a new treatment for preeclampsia in March 2024.
Based on the above initiatives, R&D expenses in FY2023 were 4,728 million yen (up 500 million yen YoY).

- 27 -

[III] Equipment and Facilities
1. Capital Expenditures
The Group continues to make capital investments to enhance and strengthen its R&D capabilities in the pharmaceutical business andto expand, upgrade, and rationalize its production facilities. Capital expenditures (including intangible assets) for the current
consolidated fiscal year totaled 1,545 million yen, and the main items are as follows.
- Pharmaceutical business: Production facilities, etc.
- Pharmaceutical business: Research facilities, etc.

693 million yen
315 million yen

2. Major Facilities
Major facilities in our Group are as follows.
(1) Filing company
Not applicable.
(2) Domestic subsidiaries
As of March 31, 2024
Book value (millions of yen)Company

Office(Location)

Shonan ResearchCenter(Fujisawa-shi,
Kanagawa)

Segment

Machinery,equipment
andvehiclesBuildings
andstructures

Land(Thousandm2 )Number of
employees(Persons)

Intangible assets

Other

Total

Marketingrights

Other

Total

(*)
Pharmaceutical
Research facility
business

Iwaki Factory
Pharmaceutical(Iwaki-shi, Fukushima)business
ASKA
PharmaceuticalCo., Ltd.

Property, plant and equipment

Facility type

Manufacturing
facility

Head Office(Minato-ku, Tokyo)

Pharmaceuticalbusiness
Supervisory
Other
operations facility,
Whole
etc.
Company

19 sales offices(Sapporo sales
office, etc.)

Pharmaceuticalbusiness

236

130

2,826

1,098

1,069

7

20

-

-

181

549

-

32

32

102
[10]

920
(138)

129

4,975

-

35

35

97
[48]

3,151
(2)

127

4,355

2,110

381

2,492

178
[35]

15

35

-

-

-

259
[19]

( -)

(*)
Sales facilities

-

( -)

Notes:
1. Buildings in column (*) are rented and are not included in the book value.
2. "Other" tangible fixed assets in the book value include tools, furniture and fixtures, etc., and do not include construction in progress.
3. Intangible assets "Other" in the book value is the sum of patent rights, software, trademark rights, right to use facilities, and telephone
subscription right.
4. Annual rentals of major leased facilities (vehicles for business use, etc.) under lease contracts amounted to 122 million yen.
5. The number of employees in parentheses [ ] is the number of temporary employees.
6. There are no major facilities currently idle.

3. Plans for Additions and Disposals of Facilities(1) New installation of important facilities, etc.
Planned expenditure amountCompany

ASKA
PharmaceuticalCo., Ltd.

Office(Location)

Segment

Facility typeIwaki Factory(Iwaki-shi, Fukushima)

Pharmaceuticalbusiness

Shonan Research Center(Fujisawa-shi, Kanagawa)Pharmaceuticalbusiness

Funding
methodStart date

Scheduledcompletion
date

Increase
capacity, etc.
after completion

812

Cash on hand

April 2024

March 2025

Update, etc.

0

Cash on hand

April 2024

March 2025

Update, etc.

Total
(Millions of yen)Amount alreadypaid(Millions of yen)

Formulation
production facilities,
etc.

3,908

Research facility

340(2) Retirement, etc., of important facilities
There are no matters requiring special mention.

- 28 -

[IV] Information on the Filing Company
1. Information on the Company’s Shares, etc.
(1) Total Number of Sharesi) Total number of shares
Type

Total number of shares authorized to be issued (Shares)

Ordinary shares

90,000,000
Total

90,000,000ii) Number of shares issued

Type

Number of shares issued as of
Number of shares issued as ofthe end of the fiscal year
filing date (Shares)(Shares)(June 25, 2024)(March 31, 2024)

Ordinaryshares

Total

Stock exchange on which theCompany is listed or financial
instruments association where
the Company is licensed

Description

Number of sharesconstituting one
trading unit
100 shares-

30,563,199

30,563,199

Tokyo Stock Exchange
Prime Market

30,563,199

30,563,199-(2) Share Acquisition Rights, etc.
i) Details of stock option program
Not applicable.
ii) Details of rights plan
Not applicable.
iii) Information on other share acquisition rights, etc.
Not applicable.
(3) Information on Exercise of Moving Strike Warrant, etc.
Not applicable.
(4) Changes in the Total Number of Issued Shares, Share Capital, etc.
Increase/decrease
Total shares
Increase/decrease Balance of sharein total number ofissued andin share capital
capitalDateissued shares
outstanding

April 1, 2021

(Shares)(Shares)

30,563,199

30,563,199(Millions of yen)

(Millions of yen)

1,197

1,197

Increase/decreasein legal capitalsurplus

Balance of legal
capital surplus(Millions of yen)

(Millions of yen)

844

844

Note: The increase in the total number of shares issued and capital and capital reserve is due to the incorporation of the Company on
April 1, 2021 through a sole-share transfer of ASKA Pharmaceutical Co., Ltd.

- 29 -

(5) Status by Ownership
As of March 31, 2024
Status of Shares (1 unit of share: 100 shares)
Category

Government
and local
governments

Financial
institutions

Financial
instruments
business
operator

Other
corporations

Foreign corporations, etc.
NonIndividual

Individuals
and Others

Individual

Total

Number ofshareholders(Persons)

-

20

24

55

108

4

5,626

5,837

Shares held
(Unit)-

90,945

7,933

71,82554,917

11

79,790305,421

Ownership as apercentage of
total shares (%)

-

29.78

2.60

23.52

17.98

0.00

26.12

100.0

Number ofshares lessthan 1 unit
(Shares)-

21,099-Notes:
1. 2,231,957 treasury shares are included in 22,319 units in "Individuals and others" and 57 shares in "Status of shares less than one unit.
2. 10 units of shares in the name of Japan Securities Depository Center, Inc. are included in “Other corporations."(6) Major Shareholders
As of March 31, 2024

Name

Address

Shares held(Thousandshares)Ownership as apercentage of total
issued shares(Excluding treasury
shares) (%)

Master Trust Bank of Japan, Ltd.
(Trust account)

1-8-1, Akasaka, Minato-ku, Tokyo
Akasaka Intercity AIR

3,050

10.76

Takeda Pharmaceutical Company
Limited

4-1-1, Doshomachi, Chuo-ku, Osaka-shi

2,204

7.78

Zeria Pharmaceutical Co., Ltd.

10-11, Nihonbashi Kobunacho, Chuo-ku,
Tokyo

1,877

6.62

Custody Bank of Japan, Ltd. (Trustaccount)

1-8-12, Harumi, Chuo-ku, Tokyo

1,478

5.22

NIPPON ACTIVE VALUE FUND
PLC

1ST FLOOR, SENATOR HOUSE, 85 QUEEN
VICTORIA STREET, LONDON, EC4V 4AB

1,268

4.47

MUFG Bank, Ltd.

2-7-1, Marunouchi, Chiyoda-ku, Tokyo

1,100

3.88

Takashi Yamaguchi

Kohoku-ku, Yokohama-shi

799

2.82

Kabushiki Kaisha YAMAGUCHI

3-1-10, Mita, Minato-ku, Tokyo
Mita Maruhachi building 6F

579

2.04

Nippon Life Insurance Company

1-6-6, Marunouchi, Chiyoda-ku, Tokyo

522

1.84

The Toa Reinsurance Company,
Limited.

3-6-5, Kanda Surugadai, Chiyoda-ku, Tokyo

500

1.76

-

13,382

47.23

Total

Notes: The Company holds 2,231,957 treasury shares but is excluded from the above major shareholders.

- 30 -

(7) Voting Rightsi) Issued shares
As of March 31, 2024
Classification

Number of shares

Number of voting rights

Contents

Shares with no voting rights

-

-

-

Shares with restricted voting rights(treasury shares, etc.)

-

-

-

Shares with restricted voting rights (Other)--

Number of shares perunit: 100 shares

Shares with full voting rights (Treasury
shares, etc.)

Ordinary shares

2,231,900-

Shares with full voting rights (Other)

Ordinary shares 28,310,200

283,102

Shares less than one unit

Ordinary shares

Total number of shares issued

same as above

21,099--30,563,199

-

-

-

283,102-

Voting rights of all shareholders

Notes: 1,000 shares (10 voting rights) in the name of Japan Securities Depository Center, Inc. are included in the column of "Shareswith full voting rights (Other)."ii) Treasury shares, etc.
As of March 31, 2024
Number of shares
held in treasury(Shares)Number of shares
held in the nameof others (Shares)

Total number ofshares held
(Shares)Number of shares
held as a percentage
of total number ofshares issued (%)

Name

Address

ASKA Pharmaceutical
Holdings Co., Ltd.

5-1, Shibaura 2Chome, Minatoku, Tokyo

2,231,900-

2,231,900

7.30

Total

-

2,231,900-

2,231,900

7.30(8) Details of the Officer/Employee Share Ownership Plan
The Company introduced the Employee Share Ownership Plan (ESOP) trust. However, the trust was terminated on May 25, 2023,
and subsequently liquidated on August 4, 2023.
i) Overview of the Officer/Employee Share Ownership Plan
Based on the resolution of the Board of Directors meeting held on February 4, 2019, our consolidated subsidiary ASKA
Pharmaceutical Co., Ltd. introduced the Employee Share Ownership Plan (ESOP) trust. This trust-type employee incentive plan
applies the ESOP mechanism as part of its efforts to expand its employee benefits program. In accordance with the Company's
incorporation through a sole-share transfer on April 1, 2021, the Company has succeeded in the agreement related to the above.
The Company established a trust for the beneficiaries who satisfy certain requirements among the employees who are membersof the "ASKA Pharmaceutical Holdings Employee Shareholding Association" (hereinafter referred to as the "Employee
Shareholding Association"). The trust acquired the number of the Company's shares expected to be acquired by the Employee
Shareholding Association over the next 5 years in a lump sum. Thereafter, the trust sells the Company's shares to the Employee
Shareholding Association on a certain date each month. At the time of termination of the trust, if there is income from the trust
due to an increase in the share price, money is distributed in proportion to the contribution ratio of the employees who are thebeneficiaries. In the event that there is a transfer loss due to a decline in the share price and a debt related to the trust assets
remains, the Company will repay the bank in a lump sum based on the guarantee clause of the loan agreement. There will be no
additional burden on the employees.
ii) Total number of shares to be acquired by the Employee Shareholding Association
216 thousand sharesiii) Scope of persons entitled to receive beneficial interests and other rights under the plan
Members of the Employee Shareholding Association who fulfill the requirements for beneficial ownership- 31 -

2. Acquisition of Treasury Shares, etc.
Acquisition of ordinary shares that falls under Article 155, Item 7 of the Companies Act(1) Status of acquisition by resolution of the General Meeting of Shareholders
Not applicable.
(2) Status of acquisition by resolution of the Board of Directors
Not applicable.
(3) Details of items not based on resolutions of the General Meeting of Shareholders or the Board of Directors
Classification

Number of shares

Total value (Yen)Treasury shares acquired in the current fiscal year

96

148,550

Treasury shares acquired during the period

66

145,644

Notes:
1. The number of shares held by the ESOP trust is not included in the treasury shares acquired during the current fiscal year.
2. The number of treasury shares acquired during the current fiscal year includes 96 shares acquired in response to requests for thepurchase of shares less than 1 unit as stipulated in Article 155, Item 7 of the Companies Act (with a total value of 148,550 yen).
3. Treasury shares acquired during the period do not include shares of less than 1 unit purchased from June 1, 2024 to the submission
date of this annual securities report.
(4) Status of disposal and holding of acquired treasury shares
Current fiscal year
Classification

Current period

Total amount ofdisposal value(Millions of yen)

Number ofsharesTotal amount ofdisposal value(Millions of yen)

Number ofsharesAcquired treasury shares offered to subscribers

-

-

-

-

Acquired treasury shares disposed of for cancellation

-

-

-

-

Acquired treasury shares transferred in connection
with a merger, share exchange, share issuance, or
corporate split

-

-

-

-

37,30052--

Other (Disposal of treasury shares as restricted sharecompensation)
Number of treasury shares held

2,231,957-

2,232,023-

Notes:
1. The number of shares transferred the ESOP trust to the Employee Shareholding Association is not included in the treasury sharesprocessed in the current fiscal year and the period.
2. The number of shares held by the ESOP trust is not included in the number of treasury shares held by the Company during the current
fiscal year and the period.
3. Treasury shares processed during the period do not include shares resulting from the sale of shares less than one unit from June 1,
2024 to the date of submission of this annual securities report.
4. The number of treasury shares held during the period does not include shares less than one unit purchased and sold from June 1, 2024
to the date of submission of this annual securities report.

- 32 -

3. Dividend Policy

The Company regards the return of profits to shareholders as one of its most important management issues. The Company's basic
policy for profit distribution is to maintain stable dividends while comprehensively taking into consideration consolidated businessperformance, medium to long term capital needs, financial positions, and other factors. Starting from FY2024, the Company sets fortha benchmark for a consolidated dividend payout ratio of 30% as a performance-linked profit distribution. Our basic policy calls forongoing stable dividends while ensuring profit distribution linked to business performance, with a minimum annual dividend of 30
yen per share.
The Company's basic policy is to pay dividends from surplus twice a year, an interim and year-end dividend. The decision-making
bodies for these dividends are the General Meeting of Shareholders for the year-end dividend and the Board of Directors for theinterim dividend.
Regarding dividends for the current fiscal year, the Company paid a stable dividend as a basic policy, with a year-end dividend of 20
yen per share, which together with the interim dividend of 20 yen per share, brought the total annual dividend to 40 yen per share.
Retained earnings will further improve earnings and strengthen the corporate structure through investments in R&D and production
facilities.
The Company's Articles of Incorporation stipulate that "the Company may, by resolution of the Board of Directors, pay interim
dividends with a record date of September 30 each year.
Dividends from surplus for the current fiscal year are as follows.
Date of resolution

Dividends (Million of yen)

Dividend per share (Yen)

November 6, 2023
Resolution by the Board of
Directors

566

20

566

20

June 25, 2024
Resolution of the Ordinary
General Meeting of
Shareholders- 33 -

4. Corporate Governance, etc.

(1) Overview of Corporate Governancei) Basic principles on corporate governance
The Company always pursues and continually works to enhance the best corporate governance practices in line with the following
basic principles:
1. We will strive to secure the rights of shareholders effectively and will ensure shareholder equality.
2. We will strive to cooperate fully with stakeholders and foster a corporate culture and climate that respects the ethics of soundbusiness practices.
3. We will fully disclose the Company's financial, management, and other information to ensure transparency.
4. The Board of Directors will establish an environment where bold management decisions are made based on corporate strategies
and will conduct highly effective supervision of Board Members.
5. We will engage in constructive dialogue with shareholders.
ii) Outline of corporate governance system and reasons for adopting this system
A. Outline of the Corporate Governance System Outline of Corporate Governance System
The Company separates management and execution through the executive officer system. Corporate Officers execute business
operations, and Board Members concentrate on their management and supervisory functions. The Board of Directors makes
decisions on management strategy policies and important management matters and supervises the execution of business
operations. As a company with an Audit & Supervisory Board, Audit & Supervisory Board Members and Audit & Supervisory
Board audit the execution of duties by the Board Members from a standpoint independent of the Board of Directors.
In addition, the Group Nomination Committee and the Group’s Remuneration Committee have been established as advisory
bodies to the Board of Directors to enhance the fairness and objectivity of the deliberation process regarding the nomination
and remuneration of officers.
A schematic diagram of the Company's organization and internal control is shown below.

B. The reason for the adoption of the system
Based on the recognition that the enhancement of corporate governance is an important issue for improving shareholder value,
the Company strives to clarify the separation of management supervision and execution, to ensure prompt and appropriate
management decisions by the Board of Directors, and to execute business operations in a flexible manner. We believe theabove corporate governance system is adequately fulfilling its functions. We will continue with the current system by utilizing
each of the above functions while striving to ensure the efficiency of operations and the effectiveness of internal controls.

- 34 -

C. Other matters relating to corporate governance- Status of internal control system
As shown in the "Schematic diagram of the Company's organization and internal control" above, the Company's internal
control system is operated in accordance with established internal regulations, etc. However, to confirm the operation statusof the system, etc., the Audit Department, which is independent of departments in charge of normal operations, has been
established to evaluate the rationality, efficiency, and appropriateness of business activities in accordance with various
regulations and to contribute to the elimination of fraud and errors and the improvement of operations. We also conduct
product quality and environmental preservation audits to ensure compliance with relevant laws, regulations, and internal
rules. In the execution of these duties, the Company receives advice from external third parties, such as lawyers, as
appropriate.
On April 1, 2021, the Board of Directors of the Company approved the "Basic Policy on the Establishment of Internal Control
System." We will continue to review the policy in response to changes in society and strive to improve and strengthen theinternal control system.
- Status of risk management system
As described in "[II] Business Overview, 3. Business and Other Risks," the Group's operations involve various risks. To avoid
or reduce these risks, the Company has established the Group Management Crisis Management Regulations, which form thebasis of internal regulations concerning crisis management and seeks to prevent management crises by ensuring that all
employees are familiar with these regulations and by clarifying the responsibilities of Board Members and employees. We
immediately set up a task force to strengthen our risk management system to enable prompt, orderly, and appropriate
responses after a crisis.
- Status of systems to ensure appropriateness of operations of subsidiaries
To ensure the appropriateness of operations of subsidiaries, the Company's supervising departments of subsidiaries holdquarterly Group Business Strategy Meetings to exchange information, share information on risks and points requiring
improvement in the execution of duties at subsidiaries in various ways, and support the resolution of such risks and points asappropriate. In addition, the Company's full-time Audit & Supervisory Board Members serve as Audit & Supervisory Board
Members of the subsidiaries and exchange information with the management of the subsidiaries, and the administrative
department of subsidiaries reports to the Audit & Supervisory Board Members based on the results of the Group Business
Strategy Meetings. Furthermore, the Company has an internal reporting system that includes subsidiaries, and any reports
from employees of subsidiaries are reported to the Audit & Supervisory Board Members.
D. Summary of the contents of the liability limitation agreement
The Company has agreed with all Outside Directors and all Audit & Supervisory Board Members to limit their liability fordamages under Article 423, Paragraph 1 of the Companies Act to the minimum liability amount stipulated in Article 425,
Paragraph 1 of the same law. Such limitation of liability is limited to cases where the Outside Directors or Audit & Supervisory
Board Members have performed their duties in good faith and without gross negligence in performing their duties that caused
the liability.
E. Summary of contents of Board Members' liability insurance (D&O insurance)
The Company has concluded a Board Members' liability insurance policy with an insurance company as stipulated in Article
430-3, Paragraph 1 of the Companies Act, which covers remuneration for damages incurred by the insured in performing theirduties and expenses incurred due to disputes.
The insureds under such the insurance policy are Members of the Board of Director, Audit & Supervisory Board Members,
and Corporate Officers of the Company and its subsidiaries, and the Company and its subsidiaries bear the premiums for all
insureds.
iii) Basic policy concerning control of the Company
The Company has not established a basic policy regarding the persons who control decisions on financial and business policies
as stipulated in Article 118, Item 3 of the Ordinance for Enforcement of the Companies Act.
iv) Number of Board Members
The Company's Articles of Incorporation stipulate that the Company shall have no more than 10 Members of the Board of
Director.

- 35 -

v) Resolution requirements for the election of Board Members
The Company's Articles of Incorporation stipulate that resolutions for the election of Board Members shall be adopted by amajority of the voting rights of shareholders present at a meeting where shareholders holding one-third or more of the voting
rights of shareholders who are entitled to exercise their voting rights are present.
In addition, the Articles of Incorporation stipulate that the resolution for the election of Board Members shall not be by cumulative
voting.
vi) Acquisition of treasury shares
The Company's Articles of Incorporation stipulate that the Company may acquire its shares by a resolution of the Board of
Directors pursuant to Article 165, Paragraph 2 of the Companies Act. This is intended to enable the Company to acquire its sharesthrough market transactions, etc., to enable the execution of flexible capital policies in response to changes in the businessenvironment.
vii) Requirements for special resolution of General Meeting of Shareholders
The Company's Articles of Incorporation stipulate that the requirements for special resolutions of the General Meeting of
Shareholders stipulated in Article 309, Paragraph 2 of the Companies Act shall be met by two-thirds or more of the voting rights
of shareholders present at the meeting where shareholders holding one-third or more of the voting rights of shareholders whoare entitled to exercise their voting rights are present. This provision aims to facilitate the smooth operation of the General
Meeting of Shareholders by relaxing the quorum for special resolutions at the General Meeting of Shareholders.
viii) Interim dividend
To flexibly return profits to shareholders, the Company's Articles of Incorporation stipulate that the Company may pay interim
dividends with a record date of September 30 of each year by a resolution of the Board of Directors pursuant to Article 454,
Paragraph 5 of the Companies Act.

ix) Exemption of Members of the Board of Director and Audit & Supervisory Board Members from liability
Pursuant to Article 426, Paragraph 1 of the Companies Act, the Company stipulates in its Articles of Incorporation that any
Members of the Board of Director (including persons who were formerly Members of the Board of Director) or Audit &Supervisory Board Members (including persons who were formerly Audit & Supervisory Board Members) may be exemptedfrom liability for their acts stipulated in Article 423, Paragraph 1 of the same Act by a resolution of the Board of Directors to
the extent permitted by law. This provision aims to create an environment in which Members of the Board of Directors andAudit & Supervisory Board Members can fully demonstrate their abilities and fulfill their expected roles in performing theirduties.
x) Activities of the Board of Directors and the Group Nomination Committee and Group’s Remuneration Committee
A. Activities of the Board of Directors
Activities in FY2023 are as follows
Position

Name

Attendance

Takashi Yamaguchi

87% (13/15 times)

Senior Managing Member of the Board of Directors, Representative Director

Atsushi Maruo

100% (15/15 times)

Senior Managing Member of the Board of Directors, Representative Director

Sohta Yamaguchi

100% (15/15 times)

Member of the Board of Directors, Executive Corporate Officer

Maiko Mori

100% (15/15 times)

Member of the Board of Directors, Executive Corporate Officer

Fumiyoshi Yamaguchi

100% (15/15 times)

Member of the Board of Directors, Outside Director

Yasunori Yoshimura

100% (15/15 times)

Member of the Board of Directors, Outside Director

Minoru Awabayashi

100% (10/10 times)

Member of the Board of Directors, Outside Director

Yasuji Enokido

100% (10/10 times)

President, Member of the Board of Directors, Representative Director

Audit & Supervisory Board Member

Ikuo Kumano

87% (13/15 times)

Audit & Supervisory Board Member

Yuichiro Fukui

100% (15/15 times)

Outside Audit & Supervisory Board Member

Takao Kimura

100% (15/15 times)

Outside Audit & Supervisory Board Member

Keiko Fukuchi

100% (15/15 times)

Note: Attendance of Mr. Minoru Awabayashi and Mr. Yasuji Enokido are limited to the Board of Directors meetings held after their
appointment on June 27, 2023.

- 36 -

In principle, the Board of Directors meets once a month, and when necessary, extraordinary meetings are held as needed. In
accordance with laws, the Articles of Incorporation, and the Company's related regulations, the Board of Directors makes
decisions on management strategy policies and important management matters and supervises the execution of business
operations. Specific matters discussed include important management contracts, disposition of important company assets,
personnel changes, organizational reforms, executive remuneration, financial statements, and budgets, General Meetings ofShareholders, employment regulations and company-wide regulations, and matters related to group subsidiaries.
B. Group Nomination Committee to be established on a voluntary basis
Activities in FY2023 are as follows
Position

Name

Attendance

Chairman

Outside Director

Yasunori Yoshimura

100% (2/ 2 times)

MemberOutside Director

Minoru Awabayashi

100% (1/ 1 time)MemberOutside Director

Yasuji Enokido

100% (1/ 1 time)MemberSenior Managing Member of the Board of
Directors, Representative Director

Sohta Yamaguchi

100% (2/ 2 times)

MemberSenior Managing Member of the Board of
Directors, Representative Director

Atsushi Maruo

100% (1/ 1 time)

Note: Attendance of Mr. Minoru Awabayashi, Mr. Yasuji Enokido and Mr. Atsushi Maruo are limited to the Group Nomination
Committee held after their appointment in March, 2024.
In FY2023, the meetings deliberated on candidates for members of the Board of Directors, the succession plan and othertopics, and decided on the content of the report to the Board of Directors.
C. Group’s Remuneration Committee to be established on a voluntary basis
Activities in FY2023 are as follows
Name

Attendance

Chairman

Outside Director

Position

Yasunori Yoshimura

100% (2/ 2 times)

MemberOutside Director

Minoru Awabayashi

100% (1/ 1 time)MemberOutside Director

Yasuji Enokido

100% (1/ 1 time)MemberSenior Managing Member of the Board of
Directors, Representative Director

Sohta Yamaguchi

100% (2/ 2 times)

MemberSenior Managing Member of the Board of
Directors, Representative Director

Atsushi Maruo

100% (1/ 1 time)

Note: The attendance of Mr. Minoru Awabayashi, Mr. Yasuji Enokido and Mr. Atsushi Maruo only covers the Group’s
Remuneration Committee meetings held after their appointment in March 2024.
In FY2023, the meetings deliberated on the compensation ratio in the Company's executive compensation, non-financial
indicators related to performance-linked compensation, etc., and the stock compensation plan, and decided on the content of
the report to the Board of Directors.

- 37 -

(2) Board Membersi) Members of the Board of Director and Audit & Supervisory Board Members
10 men, 3 women (23.1% of Board Members are women)
Title

Name

Date of birth

Career summary
Apr. 1978

President,
Member of theBoard ofDirectors,
Representative
Director

Dec. 1987
Takashi
May 10, 1952
Yamaguchi

Jun. 1991
Apr. 2021
Jun. 2021
Apr. 1981
Apr. 2009
Oct. 2010
Jun. 2011
Jun. 2014

Senior Managing
Member of theBoard ofDirectors,
Representative
Director

Jun. 2015
AtsushiMaruo

February 10,
1959
Jun. 2019
Apr. 2021
Jun. 2021
Jun. 2021
Apr. 2023
Apr. 2008
May. 2011
Feb. 2016
Jun. 2017

Senior Managing
Member of theBoard ofDirectors,
Representative
Director

Jun. 2019
Sohta
Yamaguchi

December 17,
1983

Apr. 2020
Apr. 2021
Jun. 2021
Jun. 2021
Apr. 1987
Jun. 2011

Member of theBoard ofDirectors,
Executive
Corporate Officer

Jul. 2017
Maiko Mori

April 20,1964

Apr. 2020
Jun. 2020
Jun. 2022
Jun. 2022

Joined Teikoku Hormone Mfg. Co., Ltd.
(currently ASKA Pharmaceutical Co., Ltd.)
Member of the Board of Directors of Teikoku Hormone Mfg. Co.,Ltd.
President, Member of the Board of Directors, Representative
Director of Teikoku Hormone Mfg. Co., Ltd.
President, Member of the Board of Directors, Representative
Director of the Company (to Present)
Member of the Board of Directors, Representative Director,
Chairman of the Board of ASKA Pharmaceutical Co., Ltd.
(to Present)
Joined The Mitsubishi Bank, Ltd. (currently MUFG Bank, Ltd.)
Tohoku Region Manager and Sendai Branch Manager of
The Mitsubishi Bank, Ltd.
Corporate Officer of ASKA Pharmaceutical Co., Ltd.
Member of the Board of Directors, Executive
Corporate Officer of ASKA Pharmaceutical Co., Ltd.
Senior Managing Member of the Board of Directors of
ASKA Pharmaceutical Co., Ltd.
Member of the Board of Directors of
ASKA Pharma Medical Co., Ltd.
Member of the Board of Directors of
ASKA Animal Health Co., Ltd.
Senior Managing Member of the Board of Directors, Representative
Director of ASKA Pharmaceutical Co., Ltd.
Member of the Board of Directors of the Company
Senior Managing Member of the Board of Directors, Representative
Director of the Company
Member of the Board of Directors, Vice Chairman of the Board of
ASKA Pharmaceutical Co., Ltd. (to Present)
Senior Managing Member of the Board of Directors, Representative
Director, in charge of Sustainability of the Company (to Present)
Joined Hitachi, Ltd.
Registered as a patent attorney
Joined ASKA Pharmaceutical Co., Ltd.
Member of the Board of Directors, Executive Corporate Officer, incharge of Innovative Drug Discovery of
ASKA Pharmaceutical Co., Ltd.
Managing Member of the Board of Directors, in charge of
Innovative Drug Discovery, Development, and Business Strategyof ASKA Pharmaceutical Co., Ltd.
Managing Member of the Board of Directors, in charge of
Innovative Drug Discovery, Development, Business Development,
and Medical Affairs of ASKA Pharmaceutical Co., Ltd.
Member of the Board of Directors of the Company
Senior Managing Member of the Board of Directors,
Representative Director of the Company (to Present)
President, Member of the Board of Directors, Representative
Director of ASKA Pharmaceutical Co., Ltd. (to Present)
Joined Teikoku Hormone Mfg. Co., Ltd.
(currently ASKA Pharmaceutical Co., Ltd.)
Director of Pharmaceutical Information Department of
ASKA Pharmaceutical Co., Ltd.
Director of Pharmaceutical Affairs Department of
ASKA Pharmaceutical Co., Ltd.
Division Director of Quality & Safety Assurance Division of
ASKA Pharmaceutical Co., Ltd.
Corporate Officer, Division Director of Quality & Safety Assurance
Division of ASKA Pharmaceutical Co., Ltd.
Member of the Board of Directors, Executive Corporate Officer,
Division Director of Quality & Safety Assurance Division of
ASKA Pharmaceutical Co., Ltd. (to Present)
Member of the Board of Directors, Executive Corporate Officer of
the Company (to Present)- 38 -

Term ofofficeShares held(Thousandshares)(Note) 5

799(Note) 5

41(Note) 5

138(Note) 5

11

TitleName

Date of birth

Career summary
Jul. 2011
Apr. 2019

Member of theBoard ofDirectors,
Executive
Corporate Officer

Jun. 2020
Fumiyoshi
Yamaguchi

November 3,
1986

Jan. 2021
Jun. 2021
Jun. 2022
Apr. 1975
Nov. 1995
Apr. 2007
Jun. 2011
Oct. 2012

Member of theBoard of Directors(Outside Director)

Yasunori
YoshimuraJanuary 26,
1949

Nov. 2013
Apr. 2014
Jul. 2015
Sep. 2015

Apr. 2021
Jul. 1978
Jul. 1983
Member of theBoard of Directors(Outside Director)

MinoruDecember 19, Jul. 1997
Awabayashi
1952
Apr. 2005
Apr. 2016
Jun. 2023
Apr. 1983

Member of theBoard of Directors(Outside Director)

Aug. 2007
Apr. 2013
Apr. 2015
Yasuji
EnokidoJune 30,
1960

Jun. 2015
Apr. 2016
Nov. 2017
Jun. 2023

Joined ASKA Pharmaceutical Co., Ltd.
Corporate Officer, in charge of New Business Development andAssistant Director of Healthcare Business Unit of
ASKA Pharmaceutical Co., Ltd.
Corporate Officer, in charge of Special Appointments of
ASKA Pharmaceutical Co., Ltd., Member of the Board of
Directors of ASKA Animal Health Co., Ltd.
President, Member of the Board of Directors, Representative
Director of ASKA Animal Health Co., Ltd. (to Present)
Corporate Officer of the Company (Member of the Board of
Directors of ASKA Animal Health Co., Ltd.)
Member of the Board of Directors, Executive Corporate Officer of
the Company (to Present)
Joined the Department of Obstetrics and Gynecology,
Keio University School of Medicine
Professor of the Department of Obstetrics and Gynecology,
Keio University School of Medicine
Chairperson of Japan Society of Obstetrics and Gynecology
Member of the Board of Directors, Outside Director of
ASKA Pharmaceutical Co., Ltd.
Representative Director of YOSHIMURA BIOETHIC INSTITUTE(to Present)
Outside Audit & Supervisory Board Member of
Don Quijote Holdings Co., Ltd.
(currently Pan Pacific International Holdings Corporation)
Professor Emeritus of Keio University (to Present)
Vice President of Fukushima Medical University (to Present)
Outside Board Member (Audit & Supervisory Committee Member)of Don Quijote Holdings Co., Ltd.
(currently Pan Pacific International Holdings Corporation)(to Present)
Member of the Board of Directors, Outside Director of the Company(to Present)
Established Nihon Yo-Flow Co., Ltd.
President and Representative Director
Established Pacific Marketing Partners, Inc. in the U.S.
Managing Director
Established Omniglow Japan Co., Ltd.
Vice President and Representative Director
President and Representative Director, Omniglow Japan Co., Ltd.
Senior Vice President, Takenaka Partners Corp.
Member of the Board of Directors, Outside Director of
the Company (to Present)
Joined Matsushita Electric Industrial Co. Ltd.
(currently Panasonic Corporation)
President of Panasonic Avionics Corporation
Executive of Panasonic Corporation
Managing Executive Officer of Panasonic Corporation,
President of AVC Networks Company
Managing Director of Panasonic Corporation
Representative Director and Senior Managing Director ofPanasonic Corporation
Representative Director and President of Soen Co., Ltd.
(to Present)
Member of the Board of Directors, Outside Directorof the Company (to Present)- 39 -

Term ofofficeShares held(Thousandshares)(Note) 5

8(Note) 5-(Note) 5-

Note 5-TitleName

Date of birthMember of theBoard of Directors(Outside Director)

Kanae
KaritaJuly 2,
1963

Audit &
Supervisory Board
MemberYuichiro
Fukui

August 4,
1959

Audit &
Supervisory Board
MemberKunihiro
Gunji

September
26, 1961

Outside Audit &Supervisory Board
Member

Takao
KimuraAugust 9,1951

Career summary
Mar. 1986 Graduated from the School of Health Sciences of the Faculty of
Medicine, the University of Tokyo
Mar. 1988 Completed master course of the Graduate School of Medicine, theUniversity of Tokyo
Nov. 1989 Assistant of the Department of Hygiene, School of Medicine, Teikyo
University
Jul. 2001 Lecturer of the Department of Hygiene and Public Health, School of
Medicine, Teikyo University
Sep. 2007 Associate Professor of the Department of Hygiene and Public Health,
Faculty of Medicine, Kyorin University
Apr. 2015 Professor of the Department of Hygiene and Public Health, Facultyof Medicine, Kyorin University (to Present)
Director of the Gender Equality Promotion Office, Kyorin University
Jun. 2019 Director of the Japanese Medical Science Federation(to Present)
Director of the Japanese Association of Medical Sciences (to Present)
Mar. 2022 Member of the Photochemical Oxidant Health Impact Assessment
Committee, Ministry of the Environment
Apr. 2024 Member of the Food Safety Standards Council, Cabinet Office(to Present)
Jun. 2024 Member of the Board of Directors, Outside Director of theCompany (to Present)
Apr. 1984 Joined Takeda Pharmaceutical Company Limited
Apr. 2009 Director of Eastern Japan Sales Unit of Pharmaceutical Marketing
Division of Takeda Pharmaceutical Company Limited
Jun. 2015 Executive Corporate Officer of ASKA Pharmaceutical Co., Ltd.
Jun. 2016 Member of the Board of Directors, Executive Corporate
Officer, supervising Sales Management, Division Director ofMarketing Division of ASKA Pharmaceutical Co., Ltd.
Apr. 2017 Member of the Board of Directors, Executive Corporate Officer,
supervising Sales Management of ASKA Pharmaceutical Co., Ltd.
Apr. 2021 Member of the Board of Directors of the Company
Jun. 2021 Audit & Supervisory Board Member of the Company (to Present)
Jun. 2021 Audit & Supervisory Board Member of
ASKA Pharmaceutical Co., Ltd. (to Present)
Jun. 2024 Audit & Supervisory Board Member of
ASKA Animal Health Co., Ltd. (to Present)
Apr. 1984 Joined Teikoku Hormone Mfg. Co., Ltd. (currently ASKA
Pharmaceutical Co., Ltd.)
Oct. 2008 Director of Sales Planning Promotion Department of ASKA
Pharmaceutical Co., Ltd.
Oct. 2012 Nagoya Branch Manager of ASKA Pharmaceutical Co., Ltd.
Oct. 2013 Director of Metropolitan Area Sales Department of ASKA Generic
Drug Business Division of ASKA Pharmaceutical Co., Ltd.
Apr. 2015 Assistant Division Director of Marketing Division of ASKA
Pharmaceutical Co., Ltd.
Oct. 2016 Assistant Division Director of Sales Division of ASKA
Pharmaceutical Co., Ltd.
Apr. 2017 Assistant Division Director of Development Division of ASKA
Pharmaceutical Co., Ltd.
Jun. 2017 Corporate Officer (Assistant Division Director, Development
Division) of ASKA Pharmaceutical Co., Ltd.
Jun. 2018 Corporate Officer (Division Director, Development Division) of
ASKA Pharmaceutical Co., Ltd.
Jun. 2020 Corporate Officer, in charge of Audit, Legal Affairs & Regulatory
Compliance of ASKA Pharmaceutical Co., Ltd.
Apr. 2021 Corporate Officer, in charge of Audit and Legal Affairs &Regulatory Compliance of the Company
Oct. 2022 Corporate Officer (Director, Information service Supervisory Unit)of ASKA Pharmaceutical Co., Ltd.
Jun. 2024 Audit & Supervisory Board Member of ASKA Pharmaceutical
Holdings Co., Ltd. (to Present)
Jun. 2024 Audit & Supervisory Board Member of ASKA Pharmaceutical Co.,
Ltd. (to Present)
Jun. 2024 Audit & Supervisory Board Member of ASKA Pharma Medical
Co., Ltd. (to Present)
Nov. 1975 Joined Hoechst Japan Ltd. (currently Sanofi K.K.)
Jul. 2000
President and Representative Director of Nycomed Amersham PLC
Dec. 2002 Executive Officer, General Manager of Business Development
Division of Aventis Pharma Limited (currently Sanofi K.K.)
Apr. 2010 Executive Officer, Supervising Manager of Business
Development Division in Asia-Pacific Region of Sanofi-aventis
K.K. (currently Sanofi K.K.)
Feb. 2016 Representative Partner of TK Pharma Partners LLC. (to Present)
Jun. 2017 Outside Audit & Supervisory Board Member of
ASKA Pharmaceutical Co., Ltd.
Apr. 2021 Outside Audit & Supervisory Board Member of the Company(to Present)- 40 -

Term ofofficeShares held(Thousandshares)(Note) 8-(Note) 6

12(Note) 8

7(Note)7-

TitleName

Date of birth

Career summary
Apr. 1981
Jul. 2006
Jul. 2008
Jul. 2013

Outside Audit &Supervisory Board
MemberKeiko
FukuchiJanuary 7,
1959

Mar. 2018
Aug. 2019
Jun. 2020
Jun. 2020
Jun. 2020
Apr. 2021

Joined Tokyo Regional Taxation Bureau
Deputy District Director of Shibuya Tax Office
Professor of National Tax College
Director (Mutual Agreement Procedures), International Operations
Division, Commissioner’s Secretariat of National Tax Agency
Regional Commissioner of Kanazawa Regional Taxation Bureau
Registered as a tax accountant.
Representative of Fukuchi Keiko Tax Accountant Office (to Present)
Outside Audit & Supervisory Board Member of
ASKA Pharmaceutical Co., Ltd.
Outside Director (Audit and Supervisory Committee Member) of
KAWADA TECHNOLOGIES, INC. (to Present)
Outside Auditor of KAWADA INDUSTRIES, INC. (to Present)
Outside Audit & Supervisory Board Member of the Company(to Present)

Term ofofficeShares held(Thousandshares)(Note)7

-

Total

1,018

Notes:
1. Board Members Yasunori Yoshimura, Minoru Awabayashi, Yasuji Enokido and Kanae Karita are Outside Directors.
2. Audit & Supervisory Board Members Takao Kimura and Keiko Fukuchi are Outside Audit & Supervisory Board Members.
3. The Company has introduced a Corporate Officer System to invigorate the Board of Directors by separating decision-making andsupervision from execution. Currently, there are 3 corporate officers: 1 Executive Corporate Officer and 2 Corporate Officers.
4. Sohta Yamaguchi, Senior Managing Member of the Board of Directors, and Fumiyoshi Yamaguchi, Member of the Board of Directors,
Executive Corporate Officer, are relatives of Takashi Yamaguchi, President and Representative Director, within the second degree ofkinship.
5. 2 years from the conclusion of the Ordinary General Meeting of Shareholders held on June 27, 2023
6. 4 years from the conclusion of the Extraordinary General Meeting of Shareholders held on June 24, 2021
7. From April 1, 2021, the date of incorporation of the Company, to the conclusion of the Ordinary General Meeting of Shareholders forthe fiscal year ending March 31, 2025.
8. 1 year from the conclusion of the Ordinary General Meeting of Shareholders held on June 25, 2024ii) Status of Outside Directors and Outside Audit & Supervisory Board Members
The Company has 4 Outside Directors and 2 Outside Audit & Supervisory Board Members.
There are no special interests between the Company and any of the Outside Directors or Outside Audit & Supervisory Board
Members (including any relationship between the Company and any other company in the event that any of the Outside Directors
or Outside Audit & Supervisory Board Members is or was an officer or employee of such other company, etc.).
The Company has established "Criteria for Independence of Outside Directors and Outside Audit & Supervisory Board
Members." It appoints persons who have no vested interest in the Company in accordance with these criteria. Outside Directors,
from a highly independent standpoint, monitor and check the Board of Directors by making comments as necessary in discussionsof proposals at the Board of Directors. They also function to help the Board of Directors make appropriate and flexible businessdecisions by providing advice and recommendations based on their broad outside knowledge.
by providing advice and recommendations based on their broad outside knowledge. Outside Audit & Supervisory Board
Members also have the function of providing advice and recommendations to ensure the adequacy and appropriateness ofdecision-making by the Board of Directors, based on their professional perspectives from a highly independent standpoint.
iii) Relationship between supervision ,auditing, internal audits audits by Audit & Supervisory Board Members, or accounting audits
by Outside Directors or Outside Audit & Supervisory Board Members, and relationship with the internal administrative division
Outside Directors and Outside Audit & Supervisory Board Members receive reports on audits by Audit & Supervisory Board
Members, accounting audits, and internal audits directly and indirectly through the Board of Directors, the Management
Council, the Audit & Supervisory Board, and accounting audits. They collaborate with each other by providing suggestions andadvice on these matters.
The Company has a system to receive reports directly and indirectly from the internal administrative division.

- 41 -

(3) Audit Statusi) Status of Audits by Audit & Supervisory Board Members
a. Organization, personnel and procedures
As of the submission date of this Annual Securities Report, The Audit & Supervisory Board consists of 2 full-time Audit &Supervisory Board Members and 2 part-time Audit & Supervisory Board Members (including 2 Outside Audit & Supervisory
Board Members).
At the first meeting of the Audit & Supervisory Board after the close of the General Meeting of Shareholders, The Audit &Supervisory Board determines the audit policy, allocation of audit tasks, and audit implementation plan as the audit plan forthe period until the following year's Ordinary General Meeting of Shareholders. Each Audit & Supervisory Board Member
audits the appropriateness of the execution of duties by Board members and corporate officers in accordance with the"Regulations of The Audit & Supervisory Board" and the “Audit & Supervisory Board Member Audit Standards.”
Outside Audit & Supervisory Board Member Takao Kimura is not only well versed in pharmaceutical development but also
has a considerable amount of experience and knowledge in corporate management, while Outside Audit & Supervisory Board
Member Keiko Fukuchi is a licensed tax accountant and has considerable knowledge in finance and accounting.
b. Activities of Audit & Supervisory Board Members and the Audit & Supervisory Board
Title

Name

The Audit & Supervisory Board
Attendance

Board of Directors
Attendance

Full-time Audit &Supervisory Board
MemberIkuo Kumano

16/18 times(89%)

13/15 times(87%)

Full-time Audit &Supervisory Board
MemberYuichiro Fukui

18/18 times(100%)

15/15 times(100%)

Outside Audit &Supervisory Board
MemberTakao Kimura

18/18 times(100%)

15/15 times(100%)

Outside Audit &Supervisory Board
MemberKeiko Fukuchi

18/18 times(100%)

15/15 times(100%)* Mr. Takao Kimura and Ms. Keiko Fukuchi served as members of the Group Nomination Committee and Group Remuneration
Committee, but resigned as of March 17, 2024.
The Audit & Supervisory Board is chaired by Ikuo Kumano, Full-time Audit & Supervisory Board Member, and convenes andholds meetings as necessary on an as-needed basis, on a monthly basis. In principle, the meeting is held once a month and 18
meetings were held during the fiscal year under review.
There were 14 items for resolution, and the main items for consideration included the selection of a full-time Audit & Supervisory
Board Member and Chairman (specified auditor), the audit policy and audit plan for FY2023, reappointment of the financial
auditor, remuneration of the audit firm, reporting of audit results to the Board of Directors, and issues related to Key Audit
Matters (KAMs). In addition, there were 54 matters to be reported, which included: a review of deliberation materials and minutesof the Management Council and Division Director Conference, a review of materials and minutes of the Medium-Term
Management Plan Review Meeting, reports of discussions with the Finance & Accounting Department, the Audit Department
and Legal Affairs & Regulatory Compliance Department for each quarterly closing, and reports of discussions with the auditors.
c. Major Activities of Audit & Supervisory Board Members
Audit & Supervisory Board Members attend meetings of the Board of Directors, audit the proceedings, resolutions, and othermatters, and express their opinions as necessary. In addition, based on audits of divisions and visits to Group companies,
reports are received and opinions are exchanged as necessary.
In addition, during the current fiscal year, the Company has been conducting audits based on the "establishment of acompliance system for laws and articles of incorporation," "enhancement of internal control including Group companies," and"prevention of individual risks," specifically through routine operations, on-site inspections, and individual correspondencewith Group companies, while strengthening dialogue with each department and risk approach perspectives. We paid particularattention to the audit of key risks, particularly in preventing individual risks. In particular, we focused our audits on- 42 -

occupational safety, environmental conservation, information management, product quality, and BCP measures to prevent
individual risks.
ii) Status of Internal Audits
6 members of the Audit Department conduct internal audits and assessments of internal control over financial reporting inaccordance with the relevant rules and regulations. The results of the audits are directly reported to the President and Senior
Managing Member of the Board of Directors, as well as to the Audit & Supervisory Board Members and the Management
Council, and the divisions subject to audits are asked to confirm the status of improvement of the issues pointed out based on theaudit results. These are utilized in the establishment of internal control systems.
Audit & Supervisory Board Members and the Audit Department meet regularly and as necessary to exchange opinions on audit
plans, priority audit items, and other matters to promote cooperation. In addition, the accounting auditors, management (financial
managers), and Audit & Supervisory Board Members exchange opinions in order to maintain and strengthen the corporate
governance system.
The Audit & Supervisory Board Members and the Audit Department communicate with the Internal Control Department during
their respective audit procedures. The accounting auditors exchange opinions with the Internal Control Department through the
Finance & Accounting Department and the Accounting Division as necessary.
iii) Status of accounting audit
a. Name of Audit Firm
Seiyo Audit Corporationb. Continuous audit period
13 years
Note: The Company is a pure holding company established in April 2021 through a sole-share transfer by ASKA
Pharmaceutical Co., Ltd. and includes the continuous audit period of ASKA Pharmaceutical Co., Ltd. prior to theestablishment of the Company.
c. Names, etc., of certified public accountants who performed services
Toshiya Nakaichi (Designated and Engagement Partner, Seiyo Audit Corporation)
Kenichiro Makita (Designated and Engagement Partner, Seiyo Audit Corporation)d. Composition of assistants for audit services
8 certified public accountants and 4 others belonging to Seiyo Audit Corporation.
e. Audit Firm Selection Policy and Rationale
The Audit & Supervisory Board of the Company, after deliberation in accordance with Article 344 of the Companies Act andthe "Policy on Dismissal or Non-Reappointment of Accounting Auditor," has determined that the current audit firm is capableof appropriately performing its duties and has appointed the current audit firm.
f. Evaluation of the Audit Firm by the Audit & Supervisory Board Members and the Audit & Supervisory Board
The Company's Audit & Supervisory Board Members and the Audit & Supervisory Board deliberate on evaluating the auditing
firm (accounting auditor) each fiscal year.
During the third fiscal year, we received an explanation and confirmed that the "system to ensure proper execution of duties"(the matters listed in each item of Article 131 of the Corporate Calculation Regulations) is maintained and operated inaccordance with the "Quality Control Standards Regarding Audits" (Business Accounting Council) and other relevant
standards. During the period, we received reports and requested explanations from the accounting auditors on a regular basis
and as necessary regarding the performance of their duties to monitor and verify that the accounting auditors maintained their
independence and conducted appropriate audits as professional experts in accordance with the audit plan based on risk analysis.
Based on the above, we confirm the system for ensuring the appropriateness of the accounting auditor's performance of duties
and the appropriateness of the audit for the fiscal year. We comprehensively evaluate the accounting auditor from the end of
the fiscal year until the time of deliberation based on reports from the Finance & Accounting Department and others concerning
the accounting auditor's audit.

- 43 -

iv) Details of audit fees, etc.
a. Remuneration to Certified Public Accountants, etc.
Previous consolidated fiscal year
Classification
Submitting
company
Consolidated
subsidiaries
Total

Current consolidated fiscal year

Remuneration based on
audit attestation services(Millions of yen)

Remuneration for nonaudit services(Millions of yen)

Remuneration based on
audit attestation services(Millions of yen)

Remuneration for nonaudit services(Millions of yen)

14

-

14

-

21

-

21

-

36

-

36

-

b. Remuneration to organizations with the same network as the CPAs (excluding a.)
Not applicable.
c. Details of remuneration for other significant audit attestation services
Not applicable.
d. Policy for determining audit fees
The Company believes that ensuring the quality of accounting audits is extremely important to enhance the reliability offinancial reporting. Our policy is to determine appropriate audit fees with the consent of the Audit & Supervisory Board after
considering various factors such as the number of audit days and audit items.
e. Reasons why the Audit & Supervisory Board agreed to the remuneration, etc., of the accounting auditor
The Audit & Supervisory Board of the Company has examined the content of the audit plan of the accounting auditor, thestatus of performance of duties in the previous fiscal years, and the basis for calculation of the remuneration estimate, throughobtaining necessary materials and hearing reports from the Directors, related internal departments, and the accounting auditor.
As a result, the Board of Corporate Auditors has consented to the remuneration of the Accounting Auditor in accordance with
Article 399, Paragraphs 1 and 2 of the Companies Act.
(4) Remuneration of Board Membersi) Matters pertaining to the policy for determining the amount of remuneration, etc., for Board Members or the method for
calculating the amount of remuneration, etc.
The Company's Board of Directors, at its meeting held on May 17, 2021, approved a policy for determining the details of
remuneration for each member of the Board of Directors.
With respect to the remuneration, etc. of individual Directors for the current fiscal year, the Board of Directors has confirmedthat the method of determining the details of remuneration, etc. and the details of the determined remuneration are consistent
with the decision-making policy approved by the Board of Directors and that the report from the Group Remuneration Committee
has been respected and is in line with such decision policy. Thus, the Board of Directors has concluded that the remuneration,etc. of individual Directors for the current fiscal year is in line with such decision-making policy.
Remuneration Policies and Procedures on Members of the Board of Directors
1. The Group's Remuneration Committee shall deliberate remuneration for Members of the Board of Directors of the Company
to ensure "transparency," "fairness," and "objectivity," and the Board of Directors shall determine the design of the
remuneration system and the specific amount of remuneration.
2. Remuneration for Members of the Board of Directors (excluding Outside Directors) will be designed to contribute to thesustainable enhancement of corporate value. Specifically, in addition to fixed remuneration, it will consist of a performancelinked bonus as a short-term incentive and a stock remuneration plan as a medium to long term incentive.
3. Remuneration for Outside Directors will consist solely of fixed remuneration, with no short-term, medium- or long-term
incentives, to ensure that the management supervisory function works adequately.
[Policy on determining monetary remuneration not linked to performance indicators]- Fixed remuneration
The basic remuneration for Members of the Board of Directors shall be an annual fixed remuneration, the amount of which- 44 -

shall be determined based on their position (office), responsibilities, and term of office and shall be paid on a monthly basis.
[Policy on determining performance-linked remuneration, etc. ]- Performance-based bonus
Performance-linked bonuses for Members of the Board of Directors (excluding Outside Directors) shall be determined bymultiplying the annual fixed remuneration of executive Directors by a bonus calculation coefficient determined for eachposition and by a payment coefficient based on the Company's performance (operating profit, etc.) in the previous fiscal year.
They shall be paid at a fixed time each year.
Members of the Board of Directors who concurrently serve as employees shall be incentivized by including their bonuses as
employee bonuses.
[Policy on determining non-monetary remuneration]- Restricted stock remuneration
The Company shall grant restricted transferable shares within the maximum amount and a maximum number of shares
approved at the General Meeting of Shareholders at a certain time each year to provide incentives to increase corporate value
sustainably and to promote further value sharing with shareholders. The number of restricted shares to be granted to individual
Members of the Board of Directors shall be determined considering their position (title), responsibilities, and term of office.
[Policy on determining the percentage of each type of remuneration, etc.]
The composition ratio of fixed remuneration, performance-linked bonus, and restricted stock remuneration shall be structured
with an emphasis on the level and stability of base remuneration (fixed remuneration) and with consideration given to
improving single-year performance and pursuing shareholder returns, based on the belief that it is important to approach
management from a medium to long term perspective.
The percentage of each type of remuneration for Members of the Board of Directors (excluding Outside Directors) is not fixed,
as the performance for each fiscal year determines the amount of remuneration, but the approximate percentages of fixed
remuneration, performance-linked bonus, and restricted stock remuneration are in the following ranges.
Fixed remuneration: performance-based bonus: restricted stock remuneration = 55-70%: 15-30%: 10-15%.
[Method of determination of remuneration, etc., of individual Members of the Board of Directors ]The specific amount of remuneration for each Member of the Board of Directors shall be determined by the Board of Directors
within the maximum amount of remuneration approved by the General Meeting of Shareholders, based on the report of theGroup’s Remuneration Committee, an advisory committee whose majority members are Outside Directors, etc.
ii) Total amount of remuneration, etc. by Executive classification, total amount of remuneration, etc. by type of remuneration, etc.,
and number of subject Members of the Board of Directors

Executive classification

Total amount of remuneration by type (Millions of yen)
Number of subject
Total amount ofMembers of theStock-based
remuneration, etc.
Performance-based
Board of Directors
remuneration(Millions of yen) Fixed remuneration
bonus(Persons)(Restricted transfer)

Members of the Board of
Directors (Excluding
Outside Directors)

-

-

-

-

-

Audit & Supervisory
Board Members(Excluding Outside Audit& Supervisory Board
Members)

37

37

-

-

2

Outside Directors andOutside Audit &Supervisory Board
Members

44

44

-

-

7

Notes:- 45 -

1. The amount of remuneration or the like for Members of the Board of Directors does not include the portion of employee’s salary for
Members of the Board of Directors who also serve as employees of the Company
2. The number of target Board Members is the number of Board Members paid remuneration by the Company. In addition to the above,
the total amount of remuneration received from subsidiaries (ASKA Pharmaceutical Co., Ltd. and ASKA Animal Health Co., Ltd.)by 5 Members of the Board of Directors of the Company is 285 million yen.
3. The performance index for performance-based remuneration, etc. consists of performance indexes such as operating profit and a nonfinancial ESG-related index. Those results are operating profit of 6,500 million yen, net sales of 62,843 million yen, and ROE 13.0%.
The reason the index was chosen is that it is important as an indicator of achievement of management goals; therefore, it wasdetermined to be an appropriate index for performance-based remuneration.
4. Non-monetary remuneration, etc. is Company shares.
5. Based on the resolution of the Extraordinary General Meeting of Shareholders held on June 24, 2021, the upper limit on remuneration
for Members of the Board of Directors was set at 500 million yen per year (including 70 million yen for Members of Outside Directors
and excluding the portion of employee’s salary for Members of the Board of Directors who also serve as employees of the Company).
The number of Members of the Board of Directors at the end of the Extraordinary General Meeting of Shareholders was 6 (including
3 Members of the Board of Directors, Outside Directors). Separately from this remuneration, the upper limit on restricted stockcompensation was set at 100 million yen per year based on the resolution of the Extraordinary General Meeting of Shareholders heldon June 24, 2021. The number of Members of the Board of Directors at the end of the Extraordinary General Meeting of Shareholders
was three (excluding Outside Directors).
6. Based on the resolution of the Extraordinary General Meeting of Shareholders held on June 24, 2021, the upper limit on remuneration
for Audit & Supervisory Board Members was set at 150 million yen per year. The number of Audit & Supervisory Board Members at
the end of the Extraordinary General Meeting of Shareholders was 4.

- 46 -

(5) Shareholdingsi) Criteria and approach to classification of investment shares
The Company classifies stocks held "exclusively to benefit from changes in the value of shares or dividends on the shares" asshares held for net investment purposes. Other shares are classified as cross-shareholdings. With regard to cross-shareholdings,
we examine the significance of holding cross-shareholdings, taking into consideration the possibility of future business creationin the Group, as well as the benefits and risks associated with holding cross-shareholdings, and make decisions on whether tocontinue holding cross-shareholdings.
ii) Status of shareholdings in ASKA Pharmaceutical Co., Ltd.
The Company and its consolidated subsidiaries hold the largest amount of shares of ASKA Pharmaceutical Co., Ltd., which isthe company with the largest amount of investment shares recorded on its balance sheet (investment shares recorded)
A. Investment shares held for purposes other than pure investment
a. Methods for verifying holding policies and rationality of holdings, and details of verification by the Board of Directors, etc.
regarding the appropriateness of holding individual securities
The Company acquires and holds investment shares for purposes other than pure investment, such as the potential for futurebusiness creation within the Group, the establishment of stable business and cooperative relationships, and the maintenanceand strengthening of business alliances in accordance with the Company's growth strategy.
At the time of acquisition, the Board of Directors determines the appropriateness of the acquisition, considering thesignificance and economic rationality of the acquisition in accordance with internal regulations.
After acquiring such cross-shareholdings, the Board of Directors reviews the appropriateness of continuing the crossshareholdings, taking into consideration whether the cross-shareholdings will contribute to the enhancement of theCompany's corporate value over the medium to long term, as well as the status of transactions with such companies and thefinancial position, business performance, share price, dividends, etc. of the companies in which the cross-shareholdings areheld. When the Board of Directors determines that the original purpose or significance of cross-shareholdings has
diminished, the shares are sold upon resolution of the Board of Directors.
b. Number of securities and balance sheet amounts
Amount recorded on the balance sheet
Total(Millions of yen)

Number of
Securities
Unlisted shares

8704

Shares other than unlisted shares

23

10,254[Shares whose number of shares increased in the current fiscal year]
Amount of acquisition value related
Number of
to increase in number of shares
securities(Millions of yen)
Unlisted shares

2352

Shares other than unlisted shares--

Reason for increase in number ofsharesFor the creation of business
opportunities-

Note: The Number of securities does not include issues increased by share splits.
[Securities whose number of shares decreased in the current fiscal year]
Number of
securities

Amount of sales related to decrease in number of shares(Millions of yen)

Unlisted shares--

Shares other than unlisted shares

9

4,230

- 47 -

c. Information on the number of shares and balance sheet amounts of specified equity securities and deemed holdings of equity
securities by security
Specified equity securities
Current fiscal year

Previous fiscal year

Number of shares

Number of shares

Overview of purpose of holding, businessalliances, etc, quantitative retention effects
Securities
and the reason for the increase in the number
Balance sheet amount Balance sheet amountof shareholdings(Millions of yen)
(Millions of yen)
To maintain medium to long term
246,000
266,000 relationships and expand business from a
OSAKA SODA CO.,business management perspective.The
LTD.
2,376
1,158 Company sold some shares in the current
fiscal year.
Financial holding company with
1,193,854
1,406,705 correspondent financial institutions.
Mitsubishi UFJ
To maintain and strengthen long-termbusiness relationships in financial terms.
Financial Group, Inc.
1,858
1,192 The Company sold some shares in thecurrent fiscal year.
To maintain medium to long term
393,300
785,300 relationships and expand business from a
Inabata & Co., Ltd.
business management perspective. The
1,248
2,110 Company sold some shares in the current
fiscal year.
Zeria PharmaceuticalCo., Ltd.
Mitsubishi HC Capital
Inc.
KAGA
ELECTRONICS
CO.,LTD.
CAC Holdings
Corporation
MEDIPALHOLDINGSCORPORATION

374,000

374,000

797

839

500,000

500,000

535

342

71,00071,000452

355

200,900

200,900

394

338

136,911

136,911317

246

620,100

620,100

Mebuki Financial
Group, Inc.

TODA
CORPORATION

Iyogin Holdings, Inc.

The Toho Bank, Ltd.

317

200

282,200

282,200

288

195

194,875

194,875228

146

600,000

600,000

216

130- 48 -

Shareholdings

Yes

Yes

Yes

To maintain medium to long term
relationships and expand business from abusiness management perspectiveYes

To maintain a medium to long term business
relationship with the company, a business
partner for lease transactions.

Yes

To maintain a medium to long term
relationship and expand business from abusiness management perspective.

Yes

To maintain medium to long term
relationships and expand business from abusiness management perspective.

Yes

Special dealers in the pharmaceuticalbusiness, etc. To maintain and strengthenbusiness relationships over the medium tolong term.

Yes

Financial holding company withcorrespondent financial institutions.
To maintain and strengthen long-termbusiness relationships in financial terms.

Yes

Business partners for capital investment,
etc., mainly in production facilities. To
maintain and strengthen business
relationships over the medium to long term.

Yes

Financial Institutions. To maintain andstrengthen long-term business relationships
in financial terms.

Yes

Financial Institutions. To maintain andstrengthen long-term business relationships
in financial terms.

YesTakedaPharmaceutical
Company Limited
Alfresa Holdings
Corporation
DAIKIN
INDUSTRIES, LTD.
VITAL KSKHOLDINGS, INC.
YUKI GOSEIKOGYO CO., LTD.
SUZUKEN
CO.,LTD.

HOKUYAKU
TAKEYAMA
Holdings,Inc.

Sankyu Inc.

MS&AD InsuranceGroup Holdings, Inc.

Daito PharmaceuticalCo., Ltd.

C’ BONCOSMETICS
Co.,Ltd.
Yakult Honsha
Co.,Ltd.

Yokogawa Bridge
Holdings Corp.

Tokio Marine
Holdings, Inc.

50,00050,000209

217

84,00084,000

186

142

8,800

8,800

181

208

93,46093,460117

83

366,000

366,000

116

108

21,232

21,232

98

71

112,500

112,500

97

71

14,674

14,674

76

71

7,027

10,02757

41

24,20022,00056

54

17,30017,30025

27-

180,000

-

1,733

-

235,000-

508-

75,000-191- 49 -

Important business partner. To expand
business and maintain and strengthen longterm business relationships

Yes

Special dealers in the pharmaceuticalbusiness, etc. To maintain and strengthenbusiness relationships over the medium tolong term.

Yes

Business partners for capital investment,
etc., mainly in production facilities.
To maintain and strengthen business
relationships over the medium to long term.

YesSpecial dealers in the pharmaceuticalbusiness, etc.To maintain and strengthenbusiness relationships over the medium tolong term.

Yes

Business partners for the pharmaceuticalbusiness.To maintain a medium to long termbusiness relationship.

Yes

Special dealers in the pharmaceuticalbusiness, etc. To maintain and strengthenbusiness relationships over the medium tolong term.

YesSpecial dealers in the pharmaceuticalbusiness, etc.
To maintain and strengthen business
relationships over the medium to long term.

Yes

To maintain a medium to long term
relationship and expand business from abusiness management perspective.

Yes

Holding company with trading insurancecompanies.
To maintain a medium to long term business
relationship. The Company sold some sharesin the current fiscal year.

Yes

Business partners for the pharmaceuticalbusiness.
To maintain a medium to long term business
relationship. The increase in the number ofshares was due to a 1.1-for-1 stock split
conducted on September 1, 2023.

Yes

Business partners for the other business. To
maintain a medium to long term relationshipand expand business.

Yes

To maintain medium to long term
relationships and expand business from abusiness management perspective. The
Company sold shares in the current fiscal
year.
To maintain medium to long term
relationships and expand business from abusiness management perspective. The
Company sold shares in the current fiscal
year.
Holding company with trading insurancecompanies. To maintain a medium to longterm business relationship The Company
sold shares in the current fiscal year.

No

No

No

Takasago ThermalEngineering Co., Ltd.

TAISEICORPORATION-

34,500-72-

10,000-40

Note: "-" indicates that the Company does not hold the shares.

Business partners for capital investment.
To maintain a medium to long term business
relationship. The Company sold shares in thecurrent fiscal year.

No

To maintain a medium to long term
relationship and expand business from abusiness management perspective. The
Company sold shares in the current fiscal
year.

No

Deemed holdings of equity securities

Securities

Current fiscal year

Previous fiscal year

Number of shares

Number of shares

46,20046,200Overview of purpose of holding, businessHolding ofalliances, etc, quantitative retention effects
the Company’s
and the reason for the increase in the number
sharesBalance sheet amount Balance sheet amountof shareholdings(Millions of yen)
(Millions of yen)

Sumitomo Mitsui
Financial Group, Inc.
411

-

244

662,420

Mitsubishi UFJ
Financial Group, Inc.
-

561

-

39,100Mizuho Financial
Group, Inc.
-73

Financial holding company withcorrespondent financial institutions.
To maintain and strengthen long-termbusiness relationships in financial terms.
(The Company has the authority to give
instructions regarding the exercise of voting
rights)Yes

Financial holding company withcorrespondent financial institutions.
To maintain and strengthen long-termbusiness relationships in financial terms.
(The Company has the authority to give
instructions regarding the exercise of voting
rights)The Company sold shares in the current
fiscal year.

Yes

To maintain and strengthen long-termbusiness relationships in financial terms.
(The Company has the authority to give
instructions regarding the exercise of voting
rights)The Company sold shares in the current
fiscal year.

No

Note: When selecting the top securities in the balance sheet amount, specified equity securities and shares deemed to be held by theCompany are not combined.
B. Investment shares held for pure investment purposes
Not applicable.
C. Investment securities whose purpose of holding was changed from pure investment to other than pure investment during thecurrent fiscal year
Not applicable.
D. Investment securities whose purpose of ownership was changed from other than pure investment purposes to pure investment
purposes during the fiscal year under review
Not applicable.
iii) Shareholdings in the submitting company
The following is a summary of the submitting company.
A. Investment shares held for purposes other than pure investment
Not applicable.
B. Investment shares held for pure investment purposes
Not applicable.

- 50 -

[V] Financial Information
1. Method of Preparation of Consolidated Financial Statements and Financial Statements(1) The consolidated financial statements of the Company are prepared in accordance with the "Regulations Concerning Terms, Forms
and Preparation Method of Consolidated Financial Statements" (Ministry of Finance Ordinance No. 28 of 1976).
(2) The Company's financial statements are prepared in accordance with the "Regulations Concerning Terms, Forms and Preparation
Method of Financial Statements" (Ministry of Finance Ordinance No. 59 of 1963, hereinafter referred to as "Regulations for
Financial Statements"). In addition, the Company falls under the category of a company submitting a particular financial statement.
It prepares its financial statements in accordance with Article 127 of the Regulations for Financial Statements, etc.
2. Audit attestation
Pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Law, the consolidated financial statements for the
consolidated fiscal year (from April 1, 2023 to March 31, 2024) and the business year (from April 1, 2023 to March 31, 2024) havebeen audited by Seiyo Audit Corporation.
3. Special Efforts to Ensure the Appropriateness of Consolidated Financial Statements, etc.
The Company takes special measures to ensure the appropriateness of its consolidated financial statements. Specifically, theCompany has joined the Financial Accounting Standards Foundation (FASF) and participates in its training programs to appropriately
grasp the content of accounting standards and to develop a system that enables it to respond appropriately to changes in accounting
standards and other regulations.

- 51 -

1. Consolidated Financial Statements(1) Consolidated Financial Statementsi) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Distributorship
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of March 31, 2024

14,505
15,2173,400
10,815
429
6,443
2,948
53,75913,73815,5793,500
12,578466
7,358*3 2,922
56,143

9,949(5,568)
4,381
17,612(16,266)
1,346
4,249
389
3,636
(3,208)428
10,796

10,005(5,813)
4,192
15,488(14,248)
1,240
4,249
1,101
3,762
(3,283)479
11,263

3,673
791
4,465

2,110
766
2,877

*1 14,385*1 15,654

1,717
2,031
(17)
18,11733,37887,138- 52 -

2,696
2,127
(17)
20,461
34,60190,745

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of March 31, 2024

2,838
3,022
300
3,138
4,947
736
1,142

- 53 -

4,060*3 3,295

300
4,680
5,794
2,896
1,151

24

74

1,498
17,650*3 1,715

9,185
5,433
335
14,95432,604

4,505
－
341
4,846
28,815

1,197
1,847
49,619(3,350)49,315

1,197
1,848
56,372(3,287)56,130

4,590

4,790

405
222
5,218
54,53387,138

424
584
5,799
61,93090,74523,968ii) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Fiscal year ended
March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Loss on disposal of non-current assets
Expenses of inactive non-current assets
Rental expenses on real estate
Contribution of ESOP trust
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

Fiscal year ended
March 31, 2024

*1 60,461*1 62,843

28,584*3 *4 23,476
5,108*3 *4 24,164

0
338
94
433

4
330
79
414

50

40

19

41

43
52
53
6
51
31
308
5,232

51
13
91
55
－
98
392
6,522

124
124
5,357
1,108
10
1,118
4,238
4,238

3,340
3,340
9,862
3,514
(1,197)
2,316
7,545
7,545

*2 31,876- 54 -(Millions of yen)

*2 32,178

30,6646,500

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent- 55 -

Fiscal year ended
March 31, 2024
4,238

7,545

1,371
144

202
362

229

16

*1 1,745*1 581

5,983

8,127

5,983

8,127

iii) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (April 1, 2022 – March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
period

1,197

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity1,867

45,833(3,479)45,419Changes during period
Dividends of surplus

(452)

(452)

Profit attributable toowners of parent

4,238

4,238

Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders'equity(19)

Total changes during period
Balance at end of period

(0)

(0)

129

109

-

(19)

3,785

129

3,895

1,197

1,847

49,619(3,350)49,315

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeTotal net assets

3,231

164

77

3,473

48,892

Changes during period
Dividends of surplus(452)

Profit attributable toowners of parent

4,238

Purchase of treasury
shares(0)

Disposal of treasury
sharesNet changes in items
other than shareholders'equity

109
1,359

241

144

1,745

1,745

Total changes during period

1,359

241

144

1,745

5,641

Balance at end of period

4,590

405

222

5,218

54,533- 56 -

Current consolidated fiscal year (April 1, 2023 – March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
period

1,197

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity1,847

49,619(3,350)49,315

Changes during period
Dividends of surplus

(792)

(792)

Profit attributable toowners of parent

7,545

7,545

Purchase of treasury
shares
Disposal of treasury
shares

0

(0)

(0)

62

62

Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

-

0

6,752

62

6,815

1,197

1,848

56,372(3,287)56,130

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeTotal net assets

4,590

405

222

5,218

54,533

Changes during period
Dividends of surplus(792)

Profit attributable toowners of parent

7,545

Purchase of treasury
shares(0)

Disposal of treasury
shares62

Net changes in items
other than shareholders'equity

200

18

362

581

581

Total changes during period

200

18

362

581

7,396

4,790

424

584

5,799

61,930

Balance at end of period- 57 -

iv) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in retirement benefit asset andliability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale and retirement of property, plantand equipment
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from redemption of securities
Purchase of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Net decrease (increase) in treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 58 -

Fiscal year ended
March 31, 2024
5,357
3,127

9,862
2,662

(153)

(5,262)

(338)
50

(335)
40

19

41

6

2

(124)
(742)
(2,627)
(980)
322
3,916
337
(51)
(850)
3,351

(3,340)(370)(2,713)
1,494
642
2,724
414
(41)
(1,611)
1,486

－
(400)
(461)
0
(285)
－
190
－
(170)
(1,126)400(500)(1,320)
1
(133)
(352)
4,230
(1,464)845
1,706(1,423)55(452)－(1,820)(3,138)
9
(792)
(22)
(3,943)

(2)

(15)

402
17,103*1 17,505(766)
17,505*1 16,738

Notes:[Basis of Presenting Consolidated Financial Statements]
1. Scope of Consolidation
The Company has 3 subsidiaries, all of which are consolidated. Names of consolidated subsidiaries are omitted since they arelisted in "[I] Company Overview, 4. Information on Subsidiaries and Affiliates.”
2. Application of equity method(1) Number of associates accounted for using equity method: 3
Ha Tay Pharmaceutical Joint Stock Company, JAPAN GLASS INDUSTRY CO., LTD., 1 other company.
(2) Number of associates not accounted for using equity method: 2
Kabushiki Kaisha KCIS and 1 other company are excluded from the scope of associates accounted for using equity method
because their net income or loss (as calculated by the equity method) and retained earnings (as calculated by the equity method)
have a minimal effect on the consolidated financial statements and are not significant as a whole.
(3) For those associates accounted for using equity method whose fiscal year ends on a different date than the consolidated fiscal
year end, the financial statements for the fiscal year of each company are used.
3. Fiscal Year of Consolidated Subsidiaries
The business year end of all consolidated subsidiaries is same as the consolidated fiscal year end.
4. Matters Related to Accounting Policies(1) Valuation standards and methods for significant assetsi) Securities- Held-to-maturity debt securities
Amortized cost method (straight-line method) is used.
- Available-for-sale securities- Other than stocks and other securities with no market priceMarket value method (unrealized gains and losses are accounted for as a component of net assets, and the cost of securities
sold is determined by the moving-average method).
- Non-marketable equity securities, etc.
Stated at cost determined by the moving-average method.
ii) Money held in trust for investment purposes
Market value method is used.
iii) Inventories
Stated at cost determined by the weighted average method (balance sheet values are calculated by writing down the book valueof assets which decreased in profitability).
(2) Depreciation method for significant depreciable assetsi) Property, plant and equipment
Declining-balance method (straight-line method is used for buildings (excluding building fixtures) acquired on or after April
1, 1998 and for building fixtures and structures acquired on or after April 1, 2016).
The main useful lives are as follows.
- Buildings and structures: 10-50 years- Machinery, equipment and vehicles: 4-8 yearsii) Intangible assets
The straight-line method is used.
Software for internal use is amortized over an estimated useful life of 5 years.

- 59 -

(3) Basis for significant provisionsi) Allowance for doubtful accounts
The allowance for doubtful accounts is provided for possible losses on accounts receivable-trade and other receivables basedon the historical write-off ratio for general receivables and on the estimated amount of uncollectible receivables based on acase-by-case determination of collectibility for specific receivables such as doubtful receivables.
ii) Provision for bonuses
To provide for the payment of employee bonuses, the Company accrues an estimated amount based on the period subject topayment.
iii) Provision for bonuses for directors (and other officers)
To provide for the payment of bonuses to Board Members, the Company accrues an estimated amount of bonuses to be paid
at the end of the current consolidated fiscal year.
(4) Accounting for retirement benefitsi) Method of attributing estimated retirement benefits to periods of service
The estimated amount of retirement benefits is attributed to the period up to the end of the current consolidated fiscal year
based on the benefit calculation method.
ii) Method of Amortization of Actuarial Differences
Actuarial gains and losses are amortized by the straight-line method over a fixed number of years (10 years) within the averageremaining service period of employees at the time the gains or losses are recognized in the consolidated fiscal year following
the year in which they are recognized.
(5) Basis for recording significant revenues and expenses
Revenue is recognized when control of the promised goods or services is transferred to the customer in the amount expected tobe received in exchange for such goods or services. The principal performance obligations in the major businesses and the usual
points in time at which revenue is recognized are described in the "Revenue Recognition" section.
(6) Scope of funds in the consolidated statements of cash flows
Funds (cash and cash equivalents) in the consolidated statements of cash flows consist of cash on hand, deposits that can bewithdrawn on demand, and short-term investments that are readily convertible to cash, risk averse to price fluctuations, andredeemable within 3 months from the date of acquisition.
[Significant accounting estimates]
1. Deferred tax assets(1) Amount recorded in the consolidated financial statements for the current consolidated fiscal year
(Millions of yen)Previous consolidated
fiscal year
Deferred tax asset

Current consolidated
fiscal year

1,717

2,696

(2) Information on significant accounting estimates for identified items
Deferred tax assets are estimated based on the timing and amount of taxable income based on future business plans. Suchestimates may be affected by uncertain future economic conditions, and if the timing and amount of taxable income actually
generated differ from the estimates, the amount of deferred tax assets may be materially affected in the consolidated financial
statements for the next fiscal year.
2. Valuation of goodwill related to associates accounted for using equity method(1) Amount recorded in the consolidated financial statements for the current consolidated fiscal year
(Millions of yen)Previous consolidated
fiscal year
Investment securities

Current consolidated
fiscal year

1,046

- 60 -

1,139

(2) Information on significant accounting estimates for identified itemsi) Method of calculating the amount
Investment securities recorded on the consolidated balance sheet include goodwill related to associates accounted for using
equity method. When an indication of impairment has been identified with respect to such goodwill, the carrying amount of
the goodwill is determined to be impaired by comparing the carrying amount of the goodwill with the company's share of theestimated future cash flows over the remaining amortization period of the goodwill. No indication of impairment of goodwill
was identified in the current consolidated fiscal year.
ii) Assumptions used in the calculation of the amounts
The above-mentioned assessment of whether there is any indication of impairment, and the recognition and measurement of
impairment losses are based on the business plan of associates accounted for using equity method, which includes assumptions
about market conditions and other factors.
iii) Effect on consolidated financial statements for the next consolidated fiscal year
If it is necessary to recognize an impairment loss in the next consolidated fiscal year due to changes in the market environment
or other factors, the carrying amount of the above goodwill will be reduced to its recoverable amount and the impairment loss
will be recorded as equity in losses of affiliates under non-operating expenses.
[Changes to accounting policies]
Not applicable.
[Unapplied accounting standards, etc.]
Not applicable.
[Change of display method]- Consolidated Balance Sheets“Construction in progress,” which was included in “Other” under “Property, plant and equipment” in the previous consolidated
fiscal year, is separately presented in the current consolidated fiscal year due to its increased importance in terms of amount. To
reflect this change in presentation, the consolidated financial statements for the previous consolidated fiscal year have been
reclassified.
As a result, 4,026 million yen presented as “Other” under “Property, plant and equipment” in the consolidated balance sheet forthe previous fiscal year has been reclassified as “Construction in progress” of 389 million yen and “Other” of 3,636 million yen.
“Income taxes payable,” which was included in “Other” under “Current liabilities” in the previous consolidated fiscal year, isseparately presented in the current consolidated fiscal year due to its increased importance in terms of amount. To reflect thischange in presentation, the consolidated financial statements for the previous consolidated fiscal year have been reclassified.
As a result, 2,235 million yen presented as “Other” under “Current liabilities” in the consolidated balance sheet for the previous
fiscal year has been reclassified as “Income taxes payable” of 736 million yen and “Other” of 1,498 million yen. yen.
- Consolidated Statements of Income“Share of loss of entities accounted for using equity method,” which was included in “Other” under “Non-operating expenses” inthe previous consolidated fiscal year, is separately presented as an independent account in the current consolidated fiscal year
because it exceeded 10/100 of the total amount of non-operating expenses.
“Rental expenses on real estate,” which was included in “Other” under “Non-operating expenses” in the previous consolidated
fiscal year, is separately presented as an independent account in the current consolidated fiscal year, because it exceeded 10/100
of the total amount of non-operating expenses.
To reflect this change in presentation, the consolidated financial statements for the previous consolidated fiscal year have been
reclassified.
As a result, the 57 million yen presented as “Other” under “Non-operating expenses” in the consolidated statements of income
for the previous fiscal year has been reclassified as “Share of loss of entities accounted for using equity method” of 19 million
yen, “Rental expenses on real estate” of 6 million yen, and “Other” of 31 million yen.

- 61 -

[Additional information]- Transactions in which the Company's shares are issued to employees, etc. through a trust
The Company had conducted transactions to deliver its shares through a trust to the Employee Shareholding Association for the
purpose of providing benefits to its employees. The trust was terminated as of May 25, 2023, and was liquidated on August 4,
2023.
(1) Overview of the Transaction
The Company will establish a trust with certain employees who are members of the Employee Shareholding Association andmeet certain requirements as beneficiaries. The trust acquires the number of the Company's shares expected to be acquired by
the Employee Shareholding Association in a lump sum and sells the Company's shares to the Employee Shareholding Association
on a certain date each month. Upon termination of the trust, if there is a profit for the Trust due to an increase in the share price,money will be distributed to the employees in proportion to their contribution, and if there is a loss for the trust due to a decreasein the share price, the Company will repay the Bank in a lump sum.
(2) Shares of the Company remaining in the trust
The Company's shares remaining in the trust are recorded as treasury shares under net assets based on the book value in the trust(excluding the amount of incidental expenses). The book value and number of shares of such treasury shares were 9 million yen
and 8 thousand shares for the previous fiscal year, and 9 million yen and 8 thousand shares for the current consolidated fiscal
year. As of the end of the current fiscal year, there are no shares of the Company remaining in the trust because the trust has been
terminated.
(3) Book value of borrowings recorded under the gross amount method
The book value was 48 million yen in the previous fiscal year. As of the end of the current fiscal year, there were no borrowings
recorded because the trust has been terminated.

- 62 -

[Notes to Consolidated Balance Sheets]*1. Items related to affiliated companies are as follows.
(Millions of yen)
Fiscal year ended March 31, 2023
Investment securities (shares)

Fiscal year ended March 31, 2024

2,725

4,083

2. Guaranteed liabilities
The Company has guaranteed the following affiliated companies' borrowings from financial institutions.
(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

580
(102,213 million VND)Ha Tay Pharmaceutical Joint Stock Company

1,299(212,970 million VND)

Note: Guarantee obligations denominated in foreign currencies are converted into yen at the exchange rate as of the end of the fiscal
year.
*3. Notes regarding promissory notes due on balance sheet dateNotes regarding promissory notes due on balance sheet date have been treated as if they were settled on the maturity date,although the balance sheet date was a holiday for financial institutions. The amounts of Notes regarding promissory notes due
on balance sheet date are as follows.
(Millions of yen)
Fiscal year ended March 31, 2023
Current assets “Other” (electronically recorded
receivables)
Electronically recorded obligations - operating
Current liabilities “Other” (electronicallyrecorded obligations - operating for equipment)

Fiscal year ended March 31, 2024
-

21

-

41

-

145

4. The Company has commitment line contracts with financial institutions in order to raise working capital efficiently.
The following are unused lines of credit based on these agreements.
(Millions of yen)
Fiscal year ended March 31, 2023
Total amount of commitment line contracts
Loan balance
Difference[Notes to Consolidated Statements of Income]Fiscal year ended March 31, 2024

3,000
300

3,000
300

2,700

2,700

*1. Revenue from contracts with customers
Revenues are not broken down into revenues arising from contracts with customers and other revenues. The amount of revenue
arising from contracts with customers is presented in "Notes to Consolidated Financial Statements (Revenue Recognition), 1.
Information on revenue broken down from contracts with customers" in the Notes to Consolidated Financial Statements.
*2. Ending inventory is the amount after devaluation of book value due to decline in profitability, and the following loss on valuationof inventories is included in cost of sales.
(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024
367

- 63 -

27

*3. Major items and amounts of selling, general and administrative expenses are as follows.
(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Salary allowance and bonus
Provision for bonuses
Provision for bonuses for directors(and other officers)
Retirement benefit expenses

4,215
782

4,241
766

24

74

474

390

Freight and storage charges
R&D expenses

6,088
4,227

6,305
4,728

*4. Total R&D expenses included in general and administrative expenses(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024
4,227

4,728

[Notes to Consolidated Statements of Comprehensive Income]*1. Reclassification adjustments and tax effects related to other comprehensive income(Millions of yen)

Fiscal year ended March 31, 2023
Valuation difference on available-for-sale securities:
Amount accrued in the current period
Reclassification adjustment

Fiscal year ended March 31, 2024

2,088

3,600

(124)

(3,340)

Before tax effect adjustment

1,964

260

Tax effect amount

(592)

(58)

Valuation difference on available-for-sale securities

1,371

202

169
38

568
(45)

Adjustment for retirement benefits:
Amount accrued in the current period
Reclassification adjustment
Before tax effect adjustment

208

522

Tax effect amount

(63)

(159)

144

362

229

16

1,745

581

Adjustment for retirement benefits
Share of other comprehensive income of entities
accounted for using equity method:Amount accrued in the current period
Total other comprehensive income- 64 -

[Notes to Consolidated Statements of Changes in Net Assets]
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
1. Matters concerning the class and total number of issued shares and the class and number of treasury shares(Thousands of shares)
Beginning of current Current consolidated Current consolidated
End of current
consolidated fiscal
fiscal year
fiscal year
consolidated fiscal
Increase in number of Decrease in number of
year
year
Number of sharessharessharesNumber of shares
Issued shares
Ordinary shares

30,563--30,563

Total

30,563--30,563

Ordinary shares (Note 1, 2, 3)

2,381

0

102

2,280

Total

2,381

0

102

2,280

Treasury shares

Notes:
1. The breakdown of 0 thousand shares of treasury shares of ordinary shares is due to the acquisition of 0 thousand shares of treasury
shares based on the resolution of the Board of Directors and the purchase of 0 thousand shares of less than one unit.
2. The decrease of 102 thousand shares in the number of treasury shares of ordinary shares is due to the disposal of 52 thousand sharesas restricted share compensation and the sale of 49 thousand shares by the ESOP trust.
3. The number of treasury shares of ordinary shares includes the Company's 8 thousand shares held by the ESOP trust.
2. Matters concerning share acquisition rights and treasury share acquisition rights
Not applicable.
3. Matters related to dividends(1) Dividends paid
(Resolution)

Type of shares

Total amount ofdividends(Millions of yen)

Dividends
per share(Yen)

Record date

Effective dateJune 28, 2022
Ordinary General Meeting
Ordinary shares
225
8March 31, 2022
June 29, 2022of Shareholders(Note 1)
November 7, 2022
Ordinary shares
226
8
September 30, 2022 November 30, 2022
Board of Directors(Note 2)
Notes:
1. The total amount of dividends resolved at the Ordinary General Meeting of Shareholders of ASKA Pharmaceutical Co., Ltd. on June
28, 2022 includes dividends of 0 million yen to the ESOP trust.
2. The total amount of dividends resolved by the Board of Directors on November 7, 2022 includes dividends of 0 million yen paid to
the ESOP trust.
(2) Dividends with a record date in the current consolidated fiscal year but an effective date in the following fiscal year
Total amount of
Dividends
Source ofdividends
per share
Record date
Effective date
Type of shares
dividends(Resolution)(Millions of yen)
(Yen)
June 27, 2023
Ordinary General
Retained
Ordinary
8
March 31, 2023
June 28, 2023
226
Meeting of
earnings
sharesShareholders(Note)
Note: The total amount of dividends includes dividends of 0 million yen paid to the ESOP trust.

- 65 -

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
1. Matters concerning the class and total number of issued shares and the class and number of treasury shares
Beginning of current Current consolidated Current consolidated
consolidated fiscal
fiscal year
fiscal year
Increase in number of Decrease in number ofyear
Number of sharessharesshares(Thousands of shares)
End of current
consolidated fiscal
year
Number of shares

Issued shares
Ordinary shares

30,563--30,56330,563--30,563

Ordinary shares (Note 1, 2, 3)

2,280

0

46

2,233

Total

2,280

0

46

2,233

Total amountTreasury shares

Notes:
1. The increase of 0 thousand shares of ordinary shares of treasury shares is due to the purchase of 0 thousand shares of less than one
unit.
2. The decrease of 46 thousand shares in the number of treasury shares of ordinary shares was due to the disposal of 37 thousand sharesas restricted stock compensation and the sale of 8 thousand shares by the ESOP trust.
2. Matters concerning share acquisition rights and treasury share acquisition rights
Not applicable.
3. Matters related to dividends(1) Dividends paid
(Resolution)

Type of shares

Total amount ofdividends(Millions of yen)

Dividends
per share(Yen)

Record date

Effective dateJune 27, 2023
Ordinary General Meeting Ordinary sharesof Shareholders
November 6, 2023
Board of Directors

Ordinary shares

226

8

March 31, 2023

June 28, 2023

566

20

September 30, 2023

November 30, 2023

Note: The total amount of dividends resolved at the Ordinary General Meeting of Shareholders on June 27, 2023 includes dividendsof 0 million yen to the ESOP trust.
(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Total amount of
Dividends
Source ofType of shares
dividends
per share
Record date
(Resolution)
dividends(Millions of yen)
(Yen)
June 25, 2024
Ordinary General
Meeting ofOrdinaryshares566

Retainedearnings

Shareholders- 66 -

20

March 31, 2024

Effective dateJune 26, 2024

[Notes to Consolidated Statements of Cash Flows]*1 Reconciliation of cash and cash equivalents at the end of the period to the accounts reported in the consolidated balance sheets(Millions of yen)
Fiscal year ended March 31, 2023
Cash and deposits
Securities with maturities of 3 months or lessfrom acquisition dateCash and cash equivalents

Fiscal year ended March 31, 2024

14,505

13,738

3,000

3,000

17,505

16,738[Lease transactions]1. Finance lease transactions
Not applicable.
2. Operating lease transactions- Lessee side
Future minimum lease payments under non-cancelable operating leases(Millions of yen)

Fiscal year ended March 31, 2023
Within 1 year
More than 1 year

Fiscal year ended March 31, 2024
111
114
226

Total

89
42
131

- Lender side
Future minimum lease payments under non-cancelable operating leases
Not applicable.
[Financial instruments]
1. Matters concerning the status of financial instruments(1) Policy for financial instruments
The Group procures necessary funds from the Company's correspondent financial institutions with high creditworthiness.
Temporary surplus funds are invested mainly in safe, short-term financial assets such as trust beneficiary rights. The Company's
policy is to use derivatives only to avoid the risk of interest rate fluctuations and not to engage in speculative transactions.
(2) Description of financial instruments, their risks and risk management systems
Trade receivables, such as electronically recorded receivables and accounts receivable-trade, are exposed to customer credit
risk. The Company manages due dates and issued balances for each customer with respect to such risk, and works to early
identify and mitigate concerns about collection due to deterioration of financial conditions and other factors.
Securities, investment securities and money held in trust are exposed to market price fluctuation risk. The Company has asystem in place to periodically monitor the market value or the financial condition of the issuer with respect to such risk.
Most of the trade payables, such as accounts payable and electronically recorded payables, are due within 4 months.
Borrowings are mainly for the purpose of procuring funds to acquire intellectual property rights and short-term working capital.
The redemption date is up to 5 years after the end of the fiscal year, and a portion of these borrowings are exposed to interest
rate fluctuation risk because of their floating interest rates.
Although trade payables and borrowings are exposed to liquidity risk related to fund procurement, the Finance & Accounting
Department prepares monthly cash management plans based on reports from each department and manages liquidity risk by
maintaining liquidity on hand.
(3) Supplementary explanation on matters concerning market value, etc. of financial instruments
Since variable factors are incorporated in the calculation of the market value of financial instruments, such values may change
due to the adoption of different assumptions and other factors.

- 67 -

(4) Concentration of credit risk
Approximately 85% of trade receivables as of the end of the current consolidated financial year were due to certain large
customers.
2. Market value of financial instruments
Consolidated balance sheet amounts, market values and their differences are as follows.
Previous fiscal year (March 31, 2023)(Millions of yen)
Consolidated balance sheet
amountMarket value

Difference(1) Short-term and long-term investment
securities (Note 4)
400

400

0

Available-for-sale securities

13,90013,900-Shares of affiliated companies

2,598

1,483

(1,115)

16,89915,784(1,114)

12,323

12,315(8)

12,323

12,315(8)

Held-to-maturity debt securities

Total assets(2) Long-term borrowings(including current portion)
Total liabilities
Current consolidated fiscal year (March 31, 2024)(Millions of yen)

Consolidated balance sheet
amountMarket value

Difference(1) Short-term and long-term investment
securities (Note 4)
Held-to-maturity debt securities

500

500

0

Available-for-sale securities

13,254

13,254-

Shares of affiliated companies

3,956

4,727

770

Total assets

17,711

18,482770(2) Long-term borrowings(including current portion)

9,185

9,178

(6)

9,185

9,178

(6)

Total liabilities

Notes:
1. “Cash and deposits” are omitted because they are cash, deposits are settled in a short period of time, and their market value
approximates their book value.
2. The following items have been omitted because they are settled in a short period of time and their market values approximate theirbook values due to their short maturities: “electronically recorded monetary claims,” “accounts receivable-trade,” and “money heldin trust.”
3. “Accounts payable-trade,” “electronically recorded obligations - operating,” “short-term borrowings,” and “accounts payable-other”
are omitted because they are settled in a short period of time and their market values approximate their book values.
4. Non-marketable securities are not included in (1) Short-term and long-term investment securities. The amounts recognized in the
consolidated balance sheets for such financial instruments are as follows.
(Millions of yen)Classification

Previous consolidated fiscal year

Current consolidated fiscal year

Unlisted shares

352

704

Shares of affiliated companies

127

126

Investments in investment business limited
liability partnerships, etc. (Note 5)

406

611

Total amount

886

1,443

- 68 -

Notes:5. Investments in investment business limited liability partnerships, etc. are recorded on the consolidated balance sheets at the net
amount of the Company's equity interest. Therefore, in accordance with the paragraph 24-16 of the "Guidance on AccountingStandard for Measurement of Market value" (ASBJ Guidance No. 31, June 17, 2021), they are not included in the scope of market
value disclosure. The consolidated balance sheet amount related to investments in limited liability investment partnerships, etc. asof the end of the current consolidated fiscal year was 611 million yen.
Notes:
1. Estimated amount of monetary receivables and securities with maturity dates scheduled to be redeemed after the end of theconsolidated fiscal year
Previous consolidated fiscal year (March 31, 2023)

Cash and deposits

Over 5 years
through
10 yearsWithin 1 year

Due after 1 year
through 5 years

14,503

-

-

-

39

-

-

-

15,217

-

-

-

400

-

-

-

3,000

-

-

-

1,000

-

-

-

34,163---

Electronically recorded monetaryclaims
Accounts receivable-trade(Millions of yen)Over 10 years

Short-term and long-term
investment securities
Held-to-maturity debt
securities
Bonds payable
Available-for-sale securities
with maturity dates
Jointly managed designatedmoney trust
Money trust
Total

Current consolidated fiscal year (March 31, 2024)

Cash and deposits
Electronically recorded monetaryclaims
Accounts receivable-trade(Millions of yen)Over 5 years
through
10 yearsWithin 1 year

Due after 1 year
through 5 years

13,738

-

-

-

47

-

-

-

15,579

-

-

-

500

-

-

-

3,000

-

-

-

－

-

-

-

32,866---

Over 10 years

Short-term and long-term
investment securities
Held-to-maturity debt
securities
Bonds payable
Available-for-sale securities
with maturity dates
Jointly managed designatedmoney trust
Money trust
Total- 69 -

2. Scheduled repayment amount of long-term borrowings and other interest-bearing liabilities after the end of the consolidated
fiscal year
Previous consolidated fiscal year (March 31, 2023)
Within 1 year

(Millions of yen)More than 1
Over 2 years Over 3 years Over 4 years
year
Over 5 years
Within 3 years Within 4 years Within 5 years
Within 2 years

Short-term borrowings

300

-

-

-

-

-

Long-term borrowings

3,138

4,680

1,555

1,180

1,180

590

Total

3,438

4,680

1,555

1,180

1,180

590

Current consolidated fiscal year (March 31, 2024)
Within 1 year

(Millions of yen)More than 1
Over 2 years Over 3 years Over 4 years
year
Over 5 years
Within 3 years Within 4 years Within 5 years
Within 2 years

Short-term borrowings
Long-term borrowings

300
4,680

1,555

1,180

1,180

590

-

Total

4,980

1,555

1,180

1,180

590

-

3. Matters concerning the breakdown of the market value of financial instruments by level
The market value of financial instruments is classified into the following 3 levels based on the observability and materiality of
the inputs used to calculate market value.
Level 1 market value:

Market value calculated based on (unadjusted) quoted prices in active markets for identical assets
or liabilities

Level 2 market value:
Level 3 market value:

Market value calculated using directly or indirectly observable inputs other than Level 1 inputs
Market value calculated using significant unobservable inputs

When multiple inputs that have a significant impact on the market value calculation are used, the market value is classified into
the level with the lowest priority in the market value calculation among the levels to which those inputs belong.
(1) Financial instruments carried on the consolidated balance sheet at market value
Previous consolidated fiscal year (March 31, 2023)
Classification

Market value (Millions of yen)
Level 1

Level 2

Level 3

Total amount

Investment securities
Available-for-sale securities

10,900--10,900Total assets

10,900--10,900Current consolidated fiscal year (March 31, 2024)
Classification

Market value (Millions of yen)
Level 1

Level 2

Level 3

Total amount

Investment securities
Available-for-sale securities

10,254--

10,254

Total assets

10,254--

10,254- 70 -

(2) Financial instruments other than those recorded on the consolidated balance sheets at market value
Previous consolidated fiscal year (March 31, 2023)
Classification

Market value (Millions of yen)
Level 1

Level 2

Level 3

Total

Short-term and long-term investment
securities
Held-to-maturity debt securities
Bonds payable

-

400

-

400

Jointly managed designatedmoney trust

-

3,000

-

3,000

Shares of affiliated companies

1,483

-

-

1,483

1,483

3,400

-

4,884

Long-term borrowings(including current portion)-

12,315-

12,315

Total liabilities-

12,315-

12,315

Available-for-sale securities

Total assets

Current consolidated fiscal year (March 31, 2024)
Classification

Market value (Millions of yen)
Level 1

Level 2

Level 3

Total

Short-term and long-term investment
securities
Held-to-maturity debt securities
Bonds payable

-

500

-

500

Jointly managed designatedmoney trust

-

3,000

-

3,000

Shares of affiliated companies

4,727

-

-

4,727

4,727

3,500

-

8,227

Long-term borrowings(including current portion)

-

9,178

-

9,178

Total liabilities

-

9,178

-

9,178

Available-for-sale securities

Total assets

Note: Explanation of valuation techniques used and inputs related to the calculation of market value- Short-term and long-term investment securities
Listed shares are valued using quoted market prices. Since listed shares are traded in active markets, their market value isclassified as Level 1 market value. On the other hand, bonds payable held by the Company are classified as Level 2 market
value because they are traded infrequently in the market and are not considered quoted prices in an active market. In
addition, the market value of jointly managed designated money trusts is based on their book value because they are settled
in a short period. Their market value approximates their book value, and thus their market value is classified as their Level
2 market value.
- Long-term borrowings
Of these market values, those with floating interest rates are based on book values, which approximate book values because
market interest rates are reflected within a short period and are classified as Level 2 market values. Those with fixedinterest rates are based on the present value of the total principal and interest discounted by the interest rate that would beapplicable to a similar new borrowing and are classified as Level 2 market value.

- 71 -

[Notes to securities]
1. Held-to-maturity debt securities
Previous consolidated fiscal year (March 31, 2023)
Not applicable.
Current consolidated fiscal year (March 31, 2023)
Type(Millions of yen)
Consolidated balance
sheet amount(1) Government bonds,
municipal bonds, etc.
(2) Bonds payable

Securities with market
value exceeding
consolidated balance
sheet amount(3) Others
Subtotal

Securities whose market
value does not exceed
the amount reported in
the consolidated balance
sheetsMarket value

Difference

-

-

-

400

400

0

-

-

-

400

400

0

(1) Government bonds,
municipal bonds, etc.
(2) Bonds payable

-

-

-

-

-

-

(3) Others

-

-

-

-

-

-

400

400

0

Subtotal

Total
Current consolidated fiscal year (March 31, 2024)
Type(Millions of yen)
Consolidated balance
sheet amount(1) Government bonds,
municipal bonds, etc.
(2) Bonds payable

Securities with market
value exceeding
consolidated balance
sheet amount(3) Others
Subtotal

Securities whose market
value does not exceed
the amount reported in
the consolidated balance
sheetsMarket value

Difference

-

-

-

500

500

0

-

-

-

500

500

0

(1) Government bonds,
municipal bonds, etc.
(2) Bonds payable

-

-

-

-

-

-

(3) Others

-

-

-

-

-

-

500

500

0

Subtotal

Total
2. Available-for-sale securities
Previous fiscal year (March 31, 2023)
Type
Securities whose
reported amounts in the
consolidated balance
sheets exceed
acquisition cost
Securities whose
reported amounts in the
consolidated balance
sheets do not exceed
acquisition cost

(Millions of yen)
Consolidated balance
sheet amount

Acquisition cost

Difference(1) Shares

10,563

3,854

6,708

(2) Others

-

-

-

10,563

3,854

6,708

(1) Shares

337

441

(104)

(2) Others

3,000

3,000

-

3,337

3,441

(104)

13,900

7,296

6,604

Subtotal

Subtotal

Total- 72 -

Current consolidated fiscal year (March 31, 2024)
Type
Securities whose
reported amounts in the
consolidated balance
sheets exceed
acquisition cost
Securities whose
reported amounts in the
consolidated balance
sheets do not exceed
acquisition cost

Consolidated balance
sheet amount(Millions of yen)

Acquisition cost
(Millions of yen)

(1) Shares

10,015

3,136

6,878

(2) Others

-

-

-

10,015

3,136

6,878

(1) Shares

239

269

(30)

(2) Others

3,000

3,000

-

3,239

3,269

(30)

13,254

6,406

6,848

Subtotal

Subtotal

Total

3. Other securities sold
Previous consolidated fiscal year (April 1, 2022 to March 31, 2023)
Type

Sale amount

Shares
Total(Millions of yen)

Total gain on sale

Total loss on sale

190

124

-

190

124

-

Current consolidated fiscal year (April 1, 2023 to March 31, 2024)
Type
Shares
Total

Difference(Millions of yen)

Sale amount(Millions of yen)
Total gain on sale

Total loss on sale

4,230

3,340

-

4,230

3,340

-

4. Securities for which impairment losses were recognizedNot applicable.
In the event that the market value at the end of the fiscal year has declined by 50% or more compared to the acquisition cost, allsuch declines are treated as impairment losses; impairment losses are recognized for the amount deemed necessary, taking into
consideration the possibility of recovery and other factors.
[Retirement benefits]
1. Overview of retirement benefit plans adopted
Certain consolidated subsidiaries of the Company have funded and unfunded defined benefit plans and defined contributionplans to provide for employee retirement benefits. In addition, extra retirement payments may be paid to employees upon theirretirement. Certain defined benefit plans include a retirement benefit trust funded by contributions of shares held by the Company.
The defined benefit plans of some of the Company's consolidated subsidiaries use the simplified method to calculate liabilities
for retirement benefits and retirement benefit expenses.
Some of the Company's consolidated subsidiaries participate in the Tokyo Pharmaceutical Industry Pension Fund, a multiemployer plan, and account for it in the same manner as a defined contribution plan since the amount of pension assets
corresponding to their own contributions cannot be reasonably calculated.

- 73 -

2. Defined benefit plans(1) Reconciliation of the beginning and ending balance of projected benefit obligations (excluding plans to which the simplified
method is applied)(Millions of yen)
Fiscal year ended
March 31, 2023
Retirement benefit obligation at beginning of year
Service cost
Interest cost
Actuarial gains (losses)
Retirement benefits paid
Retirement benefit obligation at end of year

Fiscal year ended
March 31, 2024
6,747
409
40
(7)
(580)
6,609

6,609
397
39
11
(495)
6,562

(2) Reconciliation between the beginning and ending balances of pension assets (excluding plans to which the simplified method
is applied)(Millions of yen)
Fiscal year ended
March 31, 2024

Fiscal year ended
March 31, 2023
Beginning balance of pension assets
Actuarial gains (losses)
Amount of retirement benefit trusts established
Pension assets at end of year

1,033
161
1,195

1,195
579
5,000
6,774

(3) Reconciliation of the beginning and ending balances of liabilities for retirement benefits for plans to which the simplified
method is applied(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Liabilities for retirement benefits, beginning of year
Retirement benefit expenses
Retirement benefits paid
Liabilities for retirement benefits at end of year

17
3
(2)
19

19
3
(2)
20

(4) Reconciliation of projected benefit obligation and pension assets at the end of the period, and liabilities for retirement benefits
and assets related to retirement benefits recorded in the consolidated balance sheets(Millions of yen)
As of March 31, 2023
Retirement benefit obligations of funded plans
Pension assets
Benefit obligation of non-funded plans
Net liabilities and assets recognized in the
consolidated balance sheets

As of March 31, 2024

6,609
(1,195)
5,414
19

6,562
(6,774)
(212)
20

5,433

(191)

5,433
-

20
(212)

5,433

(191)

Liabilities for retirement benefits
Assets related to retirement benefits
Net liabilities and assets recognized in the
consolidated balance sheets(5) Retirement benefit expenses and their breakdown(Millions of yen)
Fiscal year ended
March 31, 2024

Fiscal year ended
March 31, 2023
Service cost
Interest cost
Amortization of actuarial gain or loss
Retirement benefit expenses calculated by thesimplified method
Net periodic benefit cost related to defined benefit
plans- 74 -

409
40
38

397
39
(45)

3

3

492

394

(6) Adjustment for retirement benefits
Items recorded as adjustments to retirement benefits (before tax effect deductions)(Millions of yen)

Fiscal year ended
March 31, 2023
Actuarial gains (losses)
Total

Fiscal year ended
March 31, 2024
208
208

522
522

(7) Accumulated adjustments for retirement benefits
Items recorded in accumulated adjustments for retirement benefits (before tax effect deductions)
As of March 31, 2023
Unrecognized actuarial gains (losses)
Total(Millions of yen)
As of March 31, 2024

319
319

842
842

(8) Matters related to pension assetsi) Major components of pension assets
The ratios of major classifications to total pension assets are as follows
As of March 31, 2023

As of March 31, 2024

ClaimsShares74%
Cash and deposits
26%
OthersTotal
100%
Note: Total pension assets are all retirement benefit trusts established for defined benefit plans.

24%
19%
21%
36%
100%

ii) Method of setting expected long-term rate of return on pension assets
To determine the expected long-term rate of return on pension assets, the Company considers the current and projected
allocation of pension assets and the current and expected long-term rates of return from the various assets comprising thepension assets.
(9) Matters related to actuarial calculation basis
Principal actuarial basis (expressed as a weighted average)
As of March 31, 2023

As of March 31, 2024

Discount rate
0.6%
0.6%
Long-term expected rate of return on pension assets
0.0%
0.0%
Note: Since the Company mainly uses a point system, the projected salary increase rate is not used to calculate retirement benefit
obligations.
3. Defined contribution plan
The required contribution to the defined contribution plan was 83 million yen in the previous fiscal year and 84 million yen in
the current consolidated fiscal year.
4. Multi-employer system
The required contribution to the multi-employer pension fund plan in which certain consolidated subsidiaries participate that isaccounted for in the same manner as a defined contribution plan was 99 million yen in the previous fiscal year and 81 million
yen in the current fiscal year.
(1) Most recent funded status of multi-employer plans(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Amount of pension assets
The amount of the actuarial liability in the pension
financing calculation andTotal amount of minimum policy reserve

182,141

178,035

151,351

153,464

Balance (of an account)

30,78924,570- 75 -

(2) Percentage of certain consolidated subsidiaries' contributions to the multi-employer plan
- Previous consolidated fiscal year 1.27% (Fiscal year ended March 31, 2023)- Current consolidated fiscal year 1.32% (Fiscal year ended March 31, 2024)(3) Supplementary explanation(As of March 31, 2022)
The main factors in the difference in (1) above are 6,169 million yen of the balance of prior service cost in the pension financing
calculation, surplus of 11,809 million yen for the current consolidated fiscal year, and general reserve of 25,149 million yen forthe current consolidated fiscal year.
The past service liabilities under the plan are amortized on a straight-line basis over the remaining amortization period of 2
years and 5 months as of March 31, 2022.
(As of March 31, 2023)
The main factors in the difference in (1) above are the balance of prior service cost of 6,167 million yen, deficit of 6,221 million
yen for the current fiscal year, and general reserve of 36,959 million yen.
The past service liabilities under the plan are amortized on a straight-line basis over the remaining amortization period of 5
years and 10 months as of March 31, 2023.
The percentages shown in (2) above do not correspond to the actual burden ratios of some consolidated subsidiaries.

- 76 -

[Related to tax effect accounting]
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities for retirement benefits

1,884

2,304

Revenue recognition difference for tax purposes

Deferred tax asset
1,136

1,372

Loss on valuation of investment securities

416

416

Provision for bonuses

350

352

-

350

Prepaid research expenses

346

283

Other

759

840

4,894

5,921

Distributorship

Subtotal of deferred tax assets
Valuation allowance

(639)

(657)

Total deferred tax assets

4,255

5,263

(2,043)(2,079)

(467)

(459)

(27)

(28)

Total deferred tax liabilities(2,538)(2,567)

Net deferred tax assets

1,717

2,696

Deferred tax liabilities
Valuation difference on available-for-sale securities
Reserve for tax purpose reduction entry of non-current
assetsOther[Change of display method]“Shares of subsidiaries and affiliates,” which were independently presented in the previous fiscal year, are included in “Other” inthe current fiscal year because they became insignificant in terms of amount.
The notes for the previous fiscal year have been reclassified to reflect this change in presentation.
As a result, “Shares of subsidiaries and affiliates” of 153 million yen and "Other" of 605 million yen, which were recorded in theprevious fiscal year, have been reclassified as "Other" of 759 million yen.
2. Significant differences between the statutory tax rate and the effective income tax rate after applying tax effect accounting, by amajor item that caused the differences.
As of March 31, 2023

As of March 31, 2024

Statutory effective tax rate

30.6%

30.6%

(Adjustment)
Special deduction under the Special Taxation Measures
Law
Tax effect difference at beginning of year due to tax audit(5.6)%(6.5)%-(3.8)%-

3.0%(4.1)%

0.2%

20.9%

23.5%

Past-period income taxes
Other
Effective tax rate after application of tax effect accounting[Change of display method]“Special deduction under the Special Taxation Measures Law,” which was separately presented in the previous consolidated
fiscal year, is included in "Other" in the current consolidated fiscal year because it became immaterial considering its ratio to thestatutory effective tax rate.
The notes for the previous fiscal year have been reclassified to reflect this change in presentation.
As a result, " Special deduction under the Special Taxation Measures Law " of (4.1)% and "other" of 0.0% presented in theprevious consolidated fiscal year have been reclassified as "other" of (4.1)%.

- 77 -

[Business Combinations, etc.]
Not applicable.
[Related to asset retirement obligations]
Notes are omitted due to immateriality in amount.
[Related to real estate for rent, etc.]
The Group has rental and idle properties in Kanagawa and other areas.
- Rental income and expenses related to such rental properties in the previous consolidated fiscal year were 20 million yen and
1 million yen, respectively.
- Rental income and expenses related to such rental properties for the current consolidated fiscal year were 20 million yen and
55 million yen, respectively.
The carrying amount on the consolidated balance sheet, increase/decrease during the period, and market value of such rental
properties are as follows.
(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Balance at beginning of the period

203

202

Increase/decrease during the period

(1)

(2)

Consolidated balance sheet amount

Balance at end of year
Market value at end of period

202

200

7,542

7,542

Notes:
1. The consolidated balance sheet amount is the acquisition cost less accumulated depreciation and accumulated impairment loss.
2. The main increases/decreases in the previous consolidated fiscal year were a decrease due to depreciation (2 million yen) and anincrease due to the acquisition of land (0 million yen). The main increases/decreases in the current consolidated fiscal year werea decrease due to depreciation (2 million yen).
3. The market value at the end of the fiscal year is the amount calculated in-house based on the assessed value of non-current assets
for property tax purposes (including those adjusted using indices, etc.).

- 78 -

[Revenue recognition]
1. Information disaggregating revenue from contracts with customers
Previous consolidated fiscal year (Fiscal year ended March 31, 2023)(Millions of yen)Goods to be transferred at one point in time

Reportable Segment
Pharmaceutical
Animalbusinesshealth business
53,562
6,660

Other(Note)

Total
220

60,444

Goods transferred over a period of time

17

-

-

17

Revenue from contracts with customers

53,5796,660

22060,461----53,5796,660

22060,461Other income
Sales to external customers

Note: "Other" is a business segment not included in the reportable segments and includes clinical testing and medical device
businesses.
Current consolidated fiscal year (Fiscal year ended March 31, 2024)(Millions of yen)Goods to be transferred at one point in time

Reportable Segment
Pharmaceutical
Animalbusinesshealth business
55,9996,664

Other(Note)

Total
161

62,825

Goods transferred over a period of time

17

-

0

17

Revenue from contracts with customers

56,0166,664

162

60,843----56,0166,664

162

62,843

Other income
Sales to external customers

Note: "Other" is a business segment not included in the reportable segments and includes clinical testing and medical device
businesses.
2. Information that provides a basis for understanding the revenue arising from contracts with customers
The Group's principal business is the manufacture and sale of pharmaceutical products. In the sale of pharmaceutical products,
control of the products is transferred to the customer when the products are delivered to the distributor by the Group's sales
partners, and the performance obligation is satisfied. Revenue from the sale of products is measured at the sales price agreed toin the contract with the customer when the products are delivered, net of sales incentives and returns, and a refund liability isrecorded for the expected future payment to the customer. The refund liability is estimated using the mode method based oncontract terms and historical experience. The consideration for the transaction is received within 1 year of satisfaction of theperformance obligation. It does not include any significant financial component.

- 79 -

3. Information about the relationship between the satisfaction of performance obligations under contracts with customers and cash
flows from such contracts, and the amount and timing of revenue expected to be recognized from contracts with customers thatexisted at the end of the current consolidated fiscal year and are expected to be recognized in the following consolidated fiscal
year or later
Contract liabilities and other liabilities consist of suspense receipts received from customers in other businesses andconsideration received before the provision of goods or services, as well as discounts, returns, rebates, and other estimatedamounts expected to be paid to customers in the future, which is included in other current liabilities on the consolidated balance
sheets.
(1) Receivables arising from customer contracts, issued contract liabilities, etc.
Previous consolidated fiscal year (Fiscal year ended March 31, 2023)(Millions of yen)
Balance at
beginning of
periodBalance at end of
periodClaims arising from contracts with customers

14,515
15,257
297
193
23
14
179
273
Revenue recognized from performance obligations satisfied in prior periods in the current period was not material.
Contract liabilities, etc.
Suspense receipt
Refund liabilities

Current consolidated fiscal year (Fiscal year ended March 31, 2024)(Millions of yen)
Balance at
beginning of
periodBalance at end of
periodClaims arising from contracts with customers

15,257
15,627
297
177
23
25
273
151
Revenue recognized from performance obligations satisfied in prior periods in the current period was not material.
Contract liabilities, etc.
Suspense receipt
Refund liabilities(2) Transaction prices allocated to remaining performance obligations
Since the Group has no significant transactions with an initial expected contract period exceeding 1 year, the practical
expedient method is applied and information on residual performance obligations is omitted.

- 80 -

[Segment information etc.][Segment information]
1. Summary of reportable segments
The Group’s reportable segments are constituent units of the Company for which separate financial information can be obtained.
They are subject to review regularly by the Board of Directors to make decisions on the allocation of corporate resources andassess business performance.
The Group’s major businesses include the manufacture, sale, and import/export of pharmaceuticals and other products. Its tworeportable segments are the pharmaceutical business and the animal health business.
The pharmaceuticals business mainly manufactures and sells pharmaceuticals.
The animal health business mainly manufactures and sells veterinary pharmaceuticals and feed additives.
2. Methods of calculating amounts of net sales, profit/loss, assets, liabilities, and other items per reportable segment
The account processing methods of reportable segments conform to the accounting policies employed in the preparation of theconsolidated financial statements.
Figures for reportable segment profits are based on operating profit.
Internal sales or transfers between segments are based on actual market prices.
3. Information regarding amounts of net sales, profit/loss, assets, liabilities, and other items per reportable segment
Previous consolidated fiscal year (Fiscal year ended March 31, 2023)(Millions of yen)
Reportable segment

Others(Note 1)

Total

Amounts ofadjustments(Note 2)

Amountrecorded on
consolidated
financialstatements(Note 3)

Pharmaceuticalbusiness

Animal healthbusiness

53,5796,660

22060,461-60,461

-

-

77

77

(77)

-

Total

53,5796,660

298

60,538(77)

60,461

Segment profit (loss)

5,779

409

(6)

6,181

(1,073)

5,108

Segment assets

40,1353,031

42

43,20943,92887,138Net Sales
Sales to externalcustomers
Intersegment sales andtransfers

Other items
Depreciation and
2,487
4
2,491
481
2,972
amortization
Notes:
1. The "Other" business segment consists of businesses not included in the reportable segments, including animal health drugs,
clinical testing, medical devices, etc.
2. Details of the amounts of adjustments are provided below.
(1) The adjustment of (1,073) million yen to segment profit or loss (number in parentheses) consists of companywide expenses
not allocated to individual business segments, which consist mainly of expenses related to the parent holding company(2) The adjustment of 43,928 million yen to segment assets consists of companywide assets not allocated to individual businesssegments, which consist mainly of Company financial assets (cash and deposits, investment securities) not attributable tobusiness segments and assets related to administrative sections.
(3) The adjustment of 481 million yen to depreciation consists of depreciation not allocated to individual business segments.
3. Segment profit or loss (numbers in parentheses) is adjusted against operating profit on the consolidated financial statements.

- 81 -

Current consolidated fiscal year (Fiscal year ended March 31, 2024)

Reportable segment
Pharmaceutical
AnimalBusinesshealth business

Others(Note 1)

(Millions of yen)Amountrecorded on
Amounts ofconsolidated
adjustments
financial(Note 2)statements(Note 3)Total

Net Sales
Sales to externalcustomers
Intersegment sales andtransfers

56,0166,664

162

62,843-62,843

-

-

64

64

(64)

-

Total

56,0166,664

226

62,907(64)

62,843

Segment profit (loss)

7,647

195

(125)

7,717

(1,216)6,500

45,0343,514

39

48,58842,15790,745

2,227

4

-

2,231

201

2,432

Segment assets
Other items
Depreciation andamortization
Notes:

1. The "Other" business segment consists of businesses not included in the reportable segments, including animal health drugs,
clinical testing, and medical devices, etc.
2. Details of the amounts of adjustments are provided below.
(1) The adjustment of (1,216) million yen to segment profit or loss (number in parentheses) consists of companywide expenses
not allocated to individual business segments, which consist mainly of expenses related to the parent holding company(2) The adjustment of 42,157 million yen to segment assets consists of companywide assets not allocated to individual businesssegments, which consist mainly of Company financial assets (cash and deposits, investment securities) not attributable tobusiness segments and assets related to administrative sections.
(3) The adjustment of 201 million yen to depreciation consists of depreciation not allocated to individual business segments.
3. Segment profit or loss (numbers in parentheses) is adjusted against operating profit on the consolidated financial statements.
[Related information]
Previous consolidated fiscal year (Fiscal year ended March 31, 2023)
1. Information on individual products and services
This information is omitted because the same information was discussed under segment information.
2. Information on individual regions(1) Net sales
This information is omitted because sales to external customers in Japan account for more than 90% of net sales on theConsolidated Statements of Income.
(2) Property, plant and equipment
This information is omitted because no property, plant and equipment are located outside of Japan.
3. Information on individual main customers(Millions of yen)
Customer nameTakeda Pharmaceutical Company Limited

Net sales

Related segment

52,293 Pharmaceutical business- 82 -

Current consolidated fiscal year (Fiscal year ended March 31, 2024)
1. Information on individual products and services
This information is omitted because the same information was discussed under segment information.
2. Information on individual regions(1) Net sales
This information is omitted because sales to external customers in Japan account for more than 90% of net sales on theConsolidated Statements of Income.
(2) Property, plant and equipment
This information is omitted because no property, plant and equipment are located outside of Japan.
3. Information on individual main customers(Millions of yen)
Customer nameTakeda Pharmaceutical Company Limited

Net sales

Related segment

54,564 Pharmaceutical business[Information on impairment of non-current assets in each reportable segment]
Not applicable.
[Information on amortization of goodwill and unamortized balances in each reportable segment]
Not applicable.
[Information on gain on negative goodwill in each reportable segment]
Not applicable.

- 83 -

[Related Party Information]
Transactions with related parties
1. Transactions between the Company Submitting Consolidated Financial Statements and Related Parties
Non-consolidated subsidiaries and affiliates of companies submitting consolidated financial statements
Previous fiscal year (Fiscal year ended March 31, 2023)
Not applicable.
Current fiscal year (Fiscal year ended March 31, 2024)

Type

Company name

Percentage ofvoting rights,
etc. held by theCompany (%)(Millions of yen)

Relationshipwith relatedparties

Transaction
details

Amount ofBalance attransaction Subject
end of year
(Note 1)Ha TayLoss onAffiliated Pharmaceutical
Loss onguarantees
1,299
Indirect 34.9％
Companies Joint Stockguarantees
Note
Company
Note: Loss on guarantees were provided for bank loans, and the Company received guarantee fees calculated based on the amountof guarantees, etc.
2. Transactions between Consolidated Subsidiaries and Related Parties of the Company Submitting Consolidated Financial
Statements
Non-consolidated subsidiaries and affiliates of companies submitting consolidated financial statements
Previous fiscal year (Fiscal year ended March 31, 2023)
Not applicable.
Current fiscal year (Fiscal year ended March 31, 2024)

Type

Company name

Ha TayAffiliated Pharmaceutical
Companies Joint Stock
Company(Millions of yen)
Percentage ofRelationshipAmount ofvoting rights,
Balance atwith related Transaction details transaction Subject
etc. held by theend of year
parties(Note 1)Company (%)
Underwritin
Indirect 34.9％ g of capitalincrease

Underwriting of
capital increase
Note

1,134

-

-

Note:A consolidated subsidiary of the Company subscribed to a third-party allotment made by Ha Tay Pharmaceutical Joint
Stock Company at VND21,500 per share.

- 84 -

[Notes to amounts per share]
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Net assets per share

1,928.14 yen

2,186.10 yen

Earnings per share

150.08 yen

266.51yen

Notes:
1. Diluted profit per share is not indicated because there were no dilutive shares.
2. The bases of calculation of profit per share are described below.
Fiscal year ended March 31, 2023
Profit attributable to owners of parent

4,238 million yen

7,545 million yen--

4,238 million yen

7,545 million yen

28,239 thousands of shares

28,313 thousands of shares

Amount which is not attributable to ordinary
shareholders
Profit attributable to owners of parent related toordinary shares
Average number of shares issued during the period

Fiscal year ended March 31, 2024

Shares of the Company held in the trust account for the employee share ownership program (8 thousand shares in the previous
consolidated fiscal year) are included in treasury shares deducted from the total number of shares issued and issued at the end of theperiod for purposes of calculation of profit per share.
In addition, treasury shares (32 thousand shares in the previous consolidated fiscal year), which are deducted in the calculation of theaverage number of shares during the period, are included in the calculation of profit per share.
[Significant subsequent events]
Not applicable.

- 85 -v) Consolidated supplementary schedules[Schedule of bonds]
Not applicable.
[Schedule of borrowings, etc.]
Balance atBalance at end of Average
beginning ofcurrent period interest rate Repayment deadline
current period(Millions of yen)(%)
(Millions of yen)Classification
Short-term borrowings

300

300

0.590

-

3,138

4,680

0.441

-

-

-

-

-

9,185

4,505

0.479

Lease obligations (excluding current portion)

-

-

-

-

Other interest-bearing liabilities

-

-

-

-

plan

12,623

9,485

-

-

Current portion of Long-term borrowings
Current portion of lease obligations
Long-term borrowings (excluding current portion)

2025 - 2028

Notes:
1. The average interest rate is the weighted average interest rate on the balance of borrowings issued at the end of the fiscal year.
2. The scheduled repayment amounts of long-term borrowings (excluding current portion) for the five years after the consolidatedbalance sheet date are as follows.
(Millions of yen)More than 1 year but More than 2 years but More than 3 years but More than 4 years but
within 3 years
within 4 years
within 5 years
within 2 years
Long-term borrowings

1,555

1,180

1,180

590

[Annexed consolidated detailed schedule of asset retirement obligations]
Since the amount of asset retirement obligations at the beginning and the end of the current consolidated fiscal year is less than
1/100 of the total liabilities and net assets at the beginning and the end of the current consolidated fiscal year. The description
is omitted pursuant to Article 92-2 of the Regulations for Consolidated Financial Statements.
(2) Others
Quarterly information for the current consolidated fiscal year, etc.
(Cumulative period)

1st Quarter

2nd Quarter

3rd Quarter

Current consolidated
fiscal year

Net sales (Millions of yen)

16,02331,64848,82462,843

Profit before income taxes(Millions of yen)

1,873

5,410

8,520

9,862

Profit attributable to owners ofparent (Millions of yen)

1,428

4,129

6,458

7,545

Earnings per share (Yen)

50.51

145.93228.13266.51(Accounting period)
Earnings per share (Yen)

1st Quarter

2nd Quarter

50.51

95.41

- 86 -

3rd Quarter
82.19

4th Quarter
38.39

2. Financial Statements, etc.
(1) Financial Statementsi) Balance Sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Other
Total current assets
Non-current assets
Intangible assets
Other
Total non-current assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Deferred tax asset
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued income taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Total net assets
Shareholders’ equity
Share capital
Capital surplus
Capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets- 87 -

As of March 31, 2024

1,120
*3 79
1,200

*3 387

2,181

-

0
0

40,31954
40,37440,374
41,575299
40,31956
40,676
40,67743,245

300
48
*3 81
29
116
55
630
630

300
87
*3
19
112
46
565
565

1,197

1,197

844
41,22042,065844
41,22042,065886
886
886(3,205)40,94440,944
41,575

2,559
2,559
2,559
(3,143)
42,68042,68043,245

2,568ii) Profit and loss statement(Millions of yen)
Fiscal year ended
March 31, 2023
Operating revenue
Operating expenses
Operating profit
Non-operating profit
Interest and dividend profit
Other
Total non-operating profit
Non-operating expenses
interest expense
ESOP trust contributions
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes-deferred
Total income taxes
ProfitFiscal year ended
March 31, 2024
*1 1,732*1 *2 1,216

658

2,499

*1 1

*1 1

3

6

3
51
3
58
603
603
39
(27)
11
591

3
35
38
2,467
2,467
3
(2)
1
2,466

*1 2

- 88 -*1 3,716*1 *21,073*1 5iii) Statements of Changes in Net Assets
Previous fiscal year (Fiscal year ended March 31, 2023)(Millions of yen)
Shareholders’ equity
Capital surplus
SharecapitalBalance at the
beginning of theperiodChanges in items
during period
Dividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at the endof current period

Capitalreserve

1,197

844

Retained earnings

Other capitalsurplus

Total capitalsurplus41,23942,084(19)

Otherretainedearnings
Retainedearnings
brought
forwardTotal
retainedearnings

Total net
assetsTreasurysharesTotalshareholde
rs' equity(3,335)40,69540,695

747

747

(452)

(452)

(452)

(452)

591

591

591

591

(0)

(0)

(0)

129

109

109

(19)

-

-

(19)

(19)

139

139

129

249

249

1,197

844

41,22042,065886

886(3,205)40,94440,944Current fiscal year (Fiscal year ended March 31, 2024)(Millions of yen)
Shareholders’ equity
Capital surplus
SharecapitalBalance at the
beginning of theperiodChanges in items
during period
Dividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of
items during period
Balance at the endof current period

Capitalreserve

1,197

844

Retained earnings

Other capitalsurplus

Total capitalsurplus41,22042,0650

Otherretainedearnings
Retainedearnings
brought
forwardTotal
retainedearnings

Total net
assetsTreasurysharesTotalshareholde
rs' equity(3,205)40,94440,944

886

886

(792)

(792)

(792)

(792)

2,466

2,466

2,466

2,466

(0)

(0)

(0)

62

62

62

0

-

-

0

0

1,673

1,673

62

1,735

1,735

1,197

844

41,22042,065

2,559

2,559

(3,143)

42,68042,680- 89 -

Notes:[Significant accounting policies]
1. Valuation standards and methods for assets
Valuation standards and methods for securities
Shares of subsidiaries and affiliates…Stated at cost based on the moving average method
2. Basis for provision
Provision for bonuses
To provide for the payment of employee bonuses, an estimated amount is recorded based on the period subject to payment.
3. Depreciation method for non-current assets
The straight-line method is used.
Software for internal use is amortized over the estimated useful life (5 years).
4. Basis for recording revenues and expenses
Revenue is recognized when control of the promised goods or services is transferred to the customer in the amount expected tobe received in exchange for such goods or services. The principal performance obligations in the major businesses and the usual
points in time at which revenue is recognized are described in the "Revenue recognition" section[Additional information]- Transactions in which the Company's shares are issued to employees, etc. through a trust
Notes regarding transactions in which the Company's shares are delivered to the Employee Shareholding Association through atrust are omitted because the same information is presented in the "Notes (Additional Information)" to the consolidated financial
statements.
[Notes to Balance Sheet]
1. Guaranteed liabilities
The Company has guaranteed the following affiliated companies' borrowings from financial institutions.
(Millions of yen)
As of March 31, 2023
Ha Tay Pharmaceutical Joint Stock Company

As of March 31, 2024

580
(102,213 million VND)

1,299
(212,970 million VND)

Note: Guarantee obligations denominated in foreign currencies are converted into yen at the exchange rate as of the end of the fiscal
year.
2. The Company has commitment line contracts with financial institutions to raise working capital efficiently. The following areunused lines of credit based on these agreements.
(Millions of yen)
As of March 31, 2023
Total amount of commitment line contracts
Loan balance
Difference

As of March 31, 2024
3,000
300

3,000
300

2,700

2,700

*3. Monetary receivables from and monetary payables to subsidiaries and affiliates (excluding those presented separately)(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Short-term monetary claims

10

12

Short-term monetary obligations

70

70- 90 -

[Notes to Statements of Income]*1. Transactions with affiliated companies(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Transaction volume from business transactions
Operating revenue

1,732

3,716

Operating expenses
Transactions from non-operating transactions

60
2

81
5

*2. Major items and amounts of operating expenses are as follows
All operating expenses are general and administrative expenses.
(Millions of yen)
Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Salaries, allowances and bonuses
Provision for bonuses

473
116

539
112

Retirement benefit expenses

58

61

Carrying amount of non-marketable shares and other securities on the balance sheet(Millions of yen)

[Notes to marketable securities]
Shares of subsidiaries and affiliates
Classification

As of March 31, 2023

As of March 31, 2024

Subsidiary shares
Shares of affiliated companies

40,25640,25663

63[Related to tax effect accounting]
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Millions of yen)
As of March 31, 2023

As of March 31, 2024

510

510

Provision for bonuses

35

34

Other

19

22

Subtotal of deferred tax assets

564

566

Valuation allowance

(510)

(510)

Total deferred tax assets

54

56

Net deferred tax assets

54

56

Deferred tax asset
Shares of subsidiaries and affiliates

2. Significant differences between the statutory tax rate and the effective income tax rate after applying tax effect accounting, by amajor item that caused the differences.
As of March 31, 2023

As of March 31, 2024

Statutory effective tax rate

30.6%

30.6%

(Adjustment)
Dividend income and other items not permanently
includable in income
Others(31.0)%(30.3)%

2.3%(0.2)%

1.9%

0.1%

Effective tax rate after application of tax effect accounting- 91 -

[Change of display method]“Entertainment expenses and other items not permanently deductible for income tax purposes,”, which were independently
presented in the previous fiscal year, are included in "Other" in the current fiscal year because they became insignificant in termsof amount.
The notes for the previous fiscal year have been reclassified to reflect this change in presentation.
As a result, “Entertainment expenses and other items not permanently deductible for income tax purposes” of 1.3% and “Inhabitant
tax equalization rate” of 0.6%, and “Other” of 0.4% which were recorded in the previous fiscal year, have been reclassified as"Other" of 2.3%.
[Revenue recognition]
Information that provides a basis for understanding revenue arising from contracts with customers
The Company's revenues consist of management guidance fees and dividends received from subsidiaries. For management
guidance fees, the Company recognizes revenue when the contract with the subsidiary is executed, as the Company's performanceobligation is fulfilled when the services are provided. Dividends received are recognized as of the effective date of the dividends.
[Significant subsequent events]
Not applicable.
iv) Annexed detailed schedule[Annexed detailed schedule of property, plant and equipment, etc.]

Subject

Asset type

Intangible assets

Other (software)

Balance atBalance Accumu
theIncrease Decreaseat the end
lated
beginning during the during theof current amortizof current fiscal year fiscal year
periodation
period
-

0

-

0

0

(Millions of yen)Amortization for
Balance at the end of
thecurrent period
current
period00[Annexed detailed schedule of provisions](Millions of yen)
Subject
Provision for bonuses

Balance at the
beginning of current
periodIncrease during the
fiscal year

116

112

(2) Major Assets and Liabilities
Omitted since consolidated financial statements are prepared.

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Decrease during the Balance at the end of
fiscal year
current period
116

112

[VI] Overview of Share-related Administration for the Filing Company
Fiscal year

April 1 to March 31

Ordinary General Meeting of
Shareholders

During June

Record date

March 31

Record date for dividends fromsurplus

September 30
March 31

Number of shares per unit

100 shares

Purchase and sale of shares lessthan one unit
(Special account)Handling location
Administrator of shareholders'register

4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Transfer Agent Department, Mitsubishi UFJ Trust and Banking Corporation(Special account)
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Mitsubishi UFJ Trust and Banking Corporation

AgencyPurchase Commissions

Free
The method of public notice of the Company shall be electronic public notice.

Method of Public Notice*Japanese version only

Benefits for Shareholders

However, in the event that the Company is unable to make electronic public
notices due to an accident or other unavoidable reason, public notices shall be
published in the Nihon Keizai Shimbun.
URL for public notice: https://www.aska-pharma-hd.co.jp/
Not applicable.

Note: Pursuant to the Company's Articles of Incorporation, shareholders holding shares of less than one unit do not have any rights otherthan the rights listed in each item of Article 189, Paragraph 2 of the Companies Act, the right to make a request under Article 166,
Paragraph 1 of the Companies Act, the right to receive allotment of offered shares and offered share acquisition rights according
to the number of shares held by shareholders, and the right to request sale of shares less than one unit.

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[VII] Reference Information on the Filing Company
1. Information on the Parent Company, etc of the Filing Company
The Company has no parent company, etc. as defined in Article 24-7, Paragraph 1 of the Financial Instruments and Exchange Act.

2. Other References
The following documents were submitted between the beginning of the current fiscal year and the date of submission of the Annual
Securities Report.
(1) Annual Securities Report and its attachments and confirmations
Fiscal year (2nd period) (Fiscal year ended March 31, 2023) Submitted to the Director-General of the Kanto Local Finance
Bureau on June 27, 2023
(2) Internal control report and attached documents
Submitted to the Director-General of the Kanto Local Finance Bureau on June 27, 2023
(3) Quarterly Report and Written Confirmation
1st Quarter of the 3rd Fiscal Period(From April 1, 2023 to June 30, 2023)
Submitted to the Director-General of the Kanto Local Finance Bureau on August 7, 2023
2nd Quarter of the 3rd Fiscal Period(From July 1, 2023 to September 30, 2023)
Submitted to the Director-General of the Kanto Local Finance Bureau on November 10, 2023
3rd Quarter of the 3rd Fiscal Period(From October 1, 2023 to December 31, 2023)
Submitted to the Director-General of the Kanto Local Finance Bureau on February 9, 2024.
(4) Extraordinary Report
Submitted to the Director-General of the Kanto Local Finance Bureau on June 30, 2023
This is an Extraordinary Report pursuant to Article 19, Paragraph 2, Item 9-2 of the Cabinet Office Ordinance on Disclosure of
Corporate Information, etc. (Results of Exercise of Voting Rights at the General Meeting of Shareholders).

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Part II Information on Guarantors, etc., for the Filing Company
Not applicable.

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