ROHTO Well-being Report
Integrated Report2022

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Providing well-being topeople all over the world
through the provision of the value of
healthSince our founding, “health” has been Rohto’s core value and we have provided many people with accessible“health” through our over-the-counter (OTC) drug products and skincare products.
By extending the healthy life expectancy for each consumer and improving their quality of life,
the economic activities of whole society will be revitalized.
Increasing social security costs will be curbed, and a sustainable society of healthy longevity will be realized.
Purpose of our company “Rohto” is to lead all individuals and society surrounding us to “well-being” bydelivering “health” to people around the world through our products and services.
We will continue to contribute to the well-being of people all over the world through our business activities andaim to realize a sustainable society in which people can live healthy and happy lives.

Well-being as envisioned by Rohto
A state of happiness that is fulfilled in all aspects, including physical health, mental health, social health,and the health of the environment that surrounds them.

01

ROHTO Well-being Report 2022

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Rohto’s VisionCorporate Philosophy

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

CONTENTS

For the people to enjoy their fulfilled and happy life, the Company takes the greatest
responsibility to contribute to their mental and physical health continuously, and toattain such responsibility, the Company endeavors to operate its business from along-term perspective and generate value.

Rohto’s Vision

Sustainability

03

Corporate Philosophy/CI/Vision

39

Sustainability

05

Rohto’s Well-being Management

40

Our Commitment to HealthBeing fully aware of its mission as a public organ, the Company endeavors tocooperate with all persons surrounding the Company to solve social issues andshare with them all benefits gained through such efforts.

07

At a Glance

44

Human Resources Initiatives

09

History of Value Creation

49

Sustainable Global Environment

13

Message from the President

54

Coexistence with Society

Chapter 1, Article 2 of the Articles of Association

Rohto’s Corporate Identity

Rohto’s NEVER SAY NEVER means that we will continue to challenge the future
by focusing on moving forward and taking on challenges,
while exceeding the frame of perceived wisdom to make the world a healthier place.

Rohto’s Vision

Rohto’s Value Creation Process

Corporate Governance17

Value Creation Process

59

Message from the Chairman of the Board

19

Materiality

60

Corporate Governance21

Rohto’s Strengths that Create an Impact

67

23

Management Capital Enhancement

Directors and Audit &Supervisory Board Members

27

Rohto Group Comprehensive Management
Vision 2030

69

Compliance

28

Core Businesses

31

Rohto’s Future Growth Areas

35

Global Expansion

Data Section
71

Financial and Non-Financial Highlights

Rohto Group Comprehensive Management Vision 2030

73

Key Financial Data (11-Year Summary)75

Non-Financial Data

—Connect for Well-being—76

Corporate Data

77

Global Network“Well-being” means that people feel energized both mentally and physically,
and the spend every day filled with laughter and happinessthroughout the various stages of their life.
Rohto strives to be innovative in the fields of medicine and skincare products,
as well as other business areas,so that people all over the world can experience “Well-being” then together.
In order to fully realize this goal, we closely “connect” members to those insideand outside of company, We also “connect” organizations to each other.
We train our staff members in our chain of trust,so that we can create an organization with a sense of unity
and then “connect” them to further people’s “Well-being”.

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ROHTO Well-being Report 2022

Editorial Policy
We are issuing Rohto Well-being Report 2022 in order to help
a deeper understanding of our initiatives to increase Rohto’s
medium- to long-term corporate value for the benefit of all our
stakeholders, in particular shareholders and investors. It includes
an overview of Rohto, our medium- to long-term strategy centeredon Well-being, and ESG information.
Any information concerning finances, research and development,or other matters that is not included in this report can be found on
our website.
https://www.rohto.co.jp/

Reporting Period
From April 1, 2021 to March 31, 2022
(some information included also pertains to outside this period)

Please Note
Any business, planning, or strategic information included in this report which is notbased on the Company’s past performance is a forecast made by management using
data that was readily available as of the date of the creation of this report. Therefore,
actual results may greatly differ from the forecasts due to various factors that may
affect business performance. We appreciate your understanding of this matter.

ROHTO Well-being Report 202204

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Consumers andfuture generations

Rohto’s employees
and their families
We will reward our employees and theirfamilies appropriately throughremuneration, benefits, and training by
creating jobs based on steady growthin sales and profits.
We will also reward our employees and theirfamilies appropriately throughremuneration, benefits, andtraining.

We will contribute to mental andphysical health by offeringhigh-quality products andservices at fair prices.
We will also help improve tokeeping people’s well-being by
sharing knowledge and engaging
in health promotion activities.

Business partners(suppliers/distributors)
By increasing our sales steadily,
we will contribute to not only theearnings growth of our business
partners, but also their creation of
employment opportunities.

Rohto’s

Well-being Management
In the well-being management aimed for by Rohto, in order to expand the circle of well-being both inside andoutside of the Company, we will continue to take on challenges hand in hand with our colleagues inside andoutside the Company, based on our business strengths and cultural qualities such as health, beauty, highquality based on science, and a corporate culture where each individual is autonomous and continues to takeon challenges, aiming to create a social environment where the Company and people all over the world can live
long lives while enjoying healthy, happy days with a smile.

Key Words for Sustainable Well-being Management
Management froma long-term perspective05

As a company that is a “Public entity of society,” we will continue tocontribute to society from a long-term perspective, rather than seeking
short-term profits, in order to return the profits obtained through ourbusiness activities to all stakeholders in a sustainable manner.

Expansion ofhealth portfolio

We aim to contribute to the health of more people by providing solutions invarious fields. As a result, we will form multiple strong business pillars andbuild a stable business foundation.

Self-supporting
manufacturing ineach region

In each region, we value on self-supporting manufacturing, which encompasses
all processes from development to sales. Pursuing the necessary perspective
and commitment to quality in each region and society will lead to the delivery
of well-being to people all over the world. As a result, we believe that we canbuild a distinctive management structure that allows each Group company to
run on its own and minimize supply chain risks for the entire Group.

ROHTO Well-being Report 2022

Commitment to stakeholders
who co-create well-being

Countries andlocal communities
We will pay taxes on profits generated
by our business activities and fulfill
our social responsibilities.
We will also contribute to the revitalizationof local communities and the creationof a society with well-being throughour business activities and social
contribution activities.

Environment(global society)We will work to reduce greenhousegas emissions, conserve resources
and the environment,
build a resource recycling-basedsociety, and take otherenvironmental considerations
into account.

Shareholders andinvestors
We will take a long-term perspective
and strive to increase our corporate
value in a stable and sustainable mannerby becoming a company that truly
contributes to society. We will pay
dividends that reflect businessperformance while aiming fora dividend payout
ratio of 25%.

ROHTO Well-being Report 2022

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Rohto’s

Rohto’s Vision

Value Creation Process

Sustainability

Corporate Governance

Data Section

At a Glance
Net Sales by Business Segment
OthersNet Sales by Region

Eye Care Products
Business

3.4%

Number of the Group Companies and Employees
Rohto andconsolidated
subsidiaries

RoW

21.6%

1.0%

6,866 employees

Japan

Internal Medicines
Business

12.8%

46 companies

Number of
employees(consolidated)*As of March 31, 2022

Other affiliates: 36 companies

60.8%
Asia

Fiscal year
ended March 31, 2022

28.0%

199.6 billion yen
Europe

5.2%
Skincare Products
Business

8 companies

Americas

5.0%

62.1%

Europe374 employees

Operating Income andShare of Net Sales

Net Sales

199.6 billion yen

29.3 billion yen 14.7%

ROE

13 companies

12.6%

Asia
3,324 employees

15 companiesJapan

9 companies
Americas472 employees

2,652 employees
Operating income(billions of yen)

171.7

183.5

188.3

181.2

199.6

Share of net sales(billions of yen)

11.1
19.0

11.3
20.8

12.3

12.7

23.0

22.9

(%)

14.7

(%)

11.7

11.4

29.3
7.6

12.6

1 company

7.6

Other
0

2017

2018

2019

2020

2021 (FY)

0

2017

2018

2019

2020

Net Income per Share andNet Assets per Share

1,559.62

1,115.94

81.55

86.00

2017

2018

146.78

2019

2020

36
22

184.2644 employees

27.0

0

2017

(%)

28

26

25
29.1

19.2

2021 (FY)2021 (FY)Dividend payout ratio(yen)

1,363.42
135.13

2020

19.5%

Dividend per share
(yen)

2019

1,147.42
1,217.6702018

36 yenNet assets per share

(yen)

2017

Dividend per Share andDividend Payout Ratio

184.26 yen 1,559.62 yen
Net income per share02021 (FY)

2018

2019

19.1

2020

19.5

2021 (FY)*The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the current fiscal year, and the figures
for the fiscal year ended March 31, 2022 are after the application of the said accounting standard, etc.

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

History of Value Creation
Rohto was founded in 1899 with the ambition of “making Japan healthy” by tackling the rampant stomach diseases
that had become a social issue. Since then, with health as the core value of our business, we have constantly facedchanges in society and our customers, and have created value while taking on new challenges. We will continue todeliver health to a wide range of people now and in the future.

1899

Taking on the challenge of social issues

All diseases start fromthe stomach

At the beginning of the Meiji era, the numberof people suffering from stomach diseases
was increasing year by year in Japan due tochanges in dietary habits, and this was
becoming a social issue. The founder of theCompany, who was convinced that all
diseases start from the stomach, believed thatthe launch of effective gastrointestinal
medicines was what Japan needed in the
future. In 1899, Rohto began selling Ikatsu
gastrointestinal medicine and founded
Shintendo Yamada Anmin Pharmacy, whichbecame the predecessor of the Company.
With the advertising slogan “Ikatsu
g a s t ro i n t e s t i n a l m e d i c i n e f o r s t o m a c hdiseases, milk for crying children,” Ikatsu
spread throughout Japan, attracting a large
number of users. In 1954, we launched Siron,which was individually packaged in medicine
wrappers to meet the postwar lifestyle, and in
1962, we launched Pansiron, which was
granulated and easier to swallow, and now weare protecting the stomach of customers while
dividing products into series according toeach problem.
The spirit of the Company, which beganwith the aim of solving social issues, has been
the basis for our subsequent development.

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ROHTO Well-being Report 2022

1909

2001~
1985

Protecting mothers and babies

Supporting innovative containers and needs

Widespread adoption ofpregnancy test kits

After 1900, the eye disease trachoma spreadin Japan and became a major problem,
causing many people to lose their eyesight.
The growing demand for eye drops led to thelaunch of Rohto Eye Drops in 1909, whichmarked the beginning of our eye drops.
In 1931, we revolutionized the world of eye
drops by improving the eye drop bottle from aseparate container and a dispenser to aconvenient one-piece dual-end dropper
bottle, and became the top brand in the eyedrop industry overnight.
In 1952, Rohto Peni-my Eye Drops, a new
type of eye drops in which a compound
antibiotic tablet is dissolved into the eye dropat the time of use, was launched and becamea huge hit. By enclosing Japan’s first users’
p o s t c a rd , w e re c e i v e d f e e d b a c k f ro m
customers nationwide, which led to
improvements and the development of new
products. This stance of respecting thecustomers who use our products has been
passed down to the present.
As the economy developed and living andsanitary conditions improved, there was agreater need for drugs that protect the healthrather than cures for diseases. V Rohto, a
multi-prescription product that met this need,
was the beginning of the current V series.
Since then, we have continued our research
as a leading eye care manufacturer, deliveringn e w v a l u e b y a d d re s s i n g v a r i o u s e y e
problems and age-specific eye concerns, andby launching products with clearly defined
functions.

Today, pregnancy can be checked by selftesting with a test kit. However, in the 1980s,
pregnancy test kits were not approved asover-the-counter drugs in Japan and could
only be confirmed at hospitals. In the very
early stages of pregnancy, when the central
organs of the fetus begin to form, it was notuncommon for a woman to overload her bodywithout realizing she was pregnant, resulting
in miscarriage. In response, we quickly
recognized the need for an OTC pregnancy
test kit and began its development. We
continued to enthusiastically inform about theneed for pregnancy test kits and spreadknowledge about them.
In 1985, we began marketing Checker, aproduct introduced from overseas, and in
1992, it was first approved as an OTC drug inJapan, thus self-checking became anestablished practice. The following year, welaunched Dotest hCG, a self-developed
product that enabled one-step and quick
testing by simply pouring urine over the
product. Since then, improvements have beenm a d e t o a c c u r a c y, e a s e o f u s e , a n ddetermination time, and these improvements
continue to this day.
In 1996, Dotest LH, an ovulation prediction
kit, was launched to support couples sufferingfrom infertility. In 2016, the product finallybecame available for sale in pharmacies anddrugstores as an OTC drug.
Rohto is committed to research anddevelopment and the dissemination of
information, placing importance on each andevery customer’s voice for consultations, withthe desire to protect the precious bodies ofmothers and help couples who want a baby.

Evolution of eye drops

Taking on new challenges

To achievewell-being thatlies ahead

Beauty beyond health

Pioneering functional
cosmetics“Beautiful skin is synonymous with healthyskin, and it is important not only to moisturize
the skin, but also to make it healthy from theinside out.” The Obagi brand was launched insupport of the SHR theory advocated by Dr.
Obagi. The highly concentrated vitamin C
serum developed by gathering the best oftechnology was an unordinary cosmetic
product in terms of both the product itself andthe sales method. However, the concept offunctional cosmetics, which seeks functionality
in cosmetics and pursues evidence, is now
widely recognized and spreading.
Hada Labo was born with the aim ofrealizing the pharmaceutical concept ofdelivering active ingredients to the affectedarea in skincare, and quickly became our top
brand for its amazing moisturizing power andfeel, thanks to its simple but thorough focus
on hyaluronic acid.
episteme, a brand created for counselingsales in department stores by concentrating
our cutting-edge technology, incorporates thelatest research in the field of regenerative
medicine and continues to offer innovative
skincare products.
These cosmetics, which are unique to theCompany and go beyond the conventional,
are based on new ideas and discoveries
made possible by our research in a variety offields, including internal medicines, eye drops,
skin medicines, and regenerative medicine,and by our efforts to integrate these fields.
Cosmetics give us the joy of healthy skin as
well as a healthy mind. Our challenges willcontinue.

ROHTO Well-being Report 2022

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Rohto’s Vision

Rohto’s

Sustainability

Value Creation Process

Corporate Governance

Data Section

History of Value Creation

120.0

Taking on the challenge of multi-pillar management

Taking on the challenge ofcounseling sales

Started selling pregnancy test
kits at pharmacies(billions of yen)

Major growth in functional cosmetics

1985 Checker
Launched Checker, the first pregnancy
test kit to be sold in pharmacies in Japan

1993 Dotest hCG

1996 Dotest LH

Completed our first one-step typeproduct. Expanded market share
as a product developed in-house.

Launched ovulation prediction test
kit that can predict the date ofovulation in advance.

2021
Dotest motile sperm
concentration test kit

2009 episteme

Launched a kit for men to
support couples in theirfertility.

Expanding sales channels to department
stores with an anti-aging care brand thatconsiders beauty both inside and outside
and applies cutting-edge technology.

Other

Establishment of the core business

2021
Dotest COV19
Launched SARS
coronavirus antigen
test kit for COVID-19
infection control.

100.0

A hand care series thatmoisturizes hands.

1993 SUNPLAY
A sunscreen to protect skin from
intense ultraviolet rays. Made fullscale entry into the sun care market.

A brand with carefully
selected ingredientsthat are good for theskin, this brand focuseso n hya l u r o n i c a c i d ,which is essential for
healthy skin.

2006 OXY
A global brandthat caters tom e n ’s s k i n
problems.

2009 Melano CC
A brand that addresses
to skin problems suchas blotches and acnewith the concept ofvitamin C.

2013 De Ou

2018 DEOCO

A deodorant skincare brand that takes
care of men’s bodyodor.

A medicated bodycleanse focusing
on odor care formature women.

2008 Skin Aqua

80.0

1998 Acnes

1975

Mentholatum

1990 AD Cream

Launched ointment
and lip balm.

A drug for treating
itchy, cracked skin.

A skin care series thatsterilizes acne-causing
bacteria to achieve cleanskin.

A series of sunscreen productswith a fresh feeling createdfrom water.

2003 Mediquick

Pioneer of functional
cosmetics

A series of antidrug steroid
treatments for persistentitching and eczema rashes.

2001 Obagi
Led the market as a pioneerof functional cosmetics.

2007
50 Megumi

2014 CareCera
A highly moisturizing
brand that washes theskin while maintaining
ceramide for people
suffering from dry skin.

An anti-aging carebrand focusing on
problems that
increase with age.

Eye care products

Entry into the dermal
medicines market

60.0

Our first eye drops

1909
Rohto Eye Drops
Our first eye drops thatrevolutionized Japan.

40.0

20.0

Founding of theCompany

1964 V Rohto

1979 New V Rohto

Our first eye drops in aplastic container. First
product to containaspartic acid in Japan.

Launched compound eye
drops with the aim of making
them available to everyone
as household medicines.

1987 Rohto Alguard

1987 Rohto Zi

Brand to prevent itchyeyes caused by allergies.

Led the youth eye drop
market with its coolingsensation and stylish
bottle.

1994
Rohto Zi: Lycee
Became very popularamong high school girls as
eye drops for teenagers.

1962 Pansiron

1997 Dristan

This gastrointestinal medicine brandbecame famous with the phrase “PanPan-Pan withPansiron”

Launched a new type ofcold medicine that can be
dissolved in hot water.

1899 Ikatsu
Launched gastrointestinal
medicine, convinced thatall diseases start from thestomach.

Shift from eye drops to eye care

1995 Rohto C Cube
Our first brand for contact lenses.
Expanded
to eyedrops thefollowing
year.

Challenging food andmail-order sales

1999 Flex Power
Developed our food market with supplements
containing
glucosamineandchondroitin.

1999 Rohto I.Q.

2004 Dry Aid

Entered into the soft
contact lens market.

Eye drops focused on dryeyes, which are currently
increasing rapidly.

2006 Wakansen

2007 Senobic

Offered familiar kampo-yaku(chinese herbal medicine)suited to the bodies ofJapanese people.

A powdered drink mixed withmilk that contains nutrients
important for children during
their growth period.

2016
V Rohto PremiumHigh-functioning eye dropsthat address the accumulated
fatigue of modern
people’s eyes.

Entry into the foods withfunctional claims market

2022
V Rohto Premium
Eye Oral Tablet

2015 Rohto V5

An internal medicine thatworks from the inside totreat eye strain that causes
pain deep in the eyes.

Our first foods with functional
claims supplement for eyes.

0

1899

11

1975

1980

1990

Plant

1959 Opened Osaka Plant

M&A

2002 MG PHARMA Inc.

M&A

1988 The Mentholatum Company (U.S.A.)

Lab.

2006 Opened Research Village Kyoto

Plant

1998 Opened Vietnam Plant

M&A

Plant

1999 Opened Ueno Plant

2007 Meguro Kako Inc.
(currently Qualitech Pharma Co., Ltd.)ROHTO Well-being Report 2022

2000
New business 2013 Started regenerative medicine research
M&A

2010
M&A

2020 Nitten Pharmaceutical Co., Ltd.
(currently Rohto Nitten Co., Ltd.)

M&A

2021 Amato Pharmaceutical Products, Ltd.

M&A

2021 Olympus RMS Corporation(currently Interstem Co., Ltd.)2015 Mayado Pharmaceutical Co., Ltd.

New business 2019 Entered the medical ophthalmology area

2020 (Year)

ROHTO Well-being Report 2022

12Internal medicine and food products

1998 Hand Veil

Skincare products

2004
Hada Labo

Full-scale entry into
the sun care market

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Message from the President

We will achieve medium- to long-termsustainable growth by realizing

Connect for Well-being
Rohto’s mission is to continue to contribute tomental and physical health of people around theworld.
Under this unpredictable world, we will further
strength our human resources in order to pave theway and create the future with the challenging spiritof “Never Say Never” that Rohto values. We will bekeep going on to be “Connected”, in order torealize the society that we want to achieve in the
future.

True health is not only mental and physical health, but also being able to contribute to society
It has been three years since I joined the Company inJanuary 2019 and assumed the position of President inJune of the same year. During that period, there was theunforeseen situation of the global economic stagnation
caused by COVID-19. Despite the fact of this disaster,we were able to minimize the impact on our businessperformance with the corporation of whole groupmembers. Even more, as in fiscal 2021, we were able to
make a great leap forward with our highest ever profits.
We are thankful to our customers who have chosen our
products and have enabled us to continue to grow ourbusiness performance in such an environment.
I believe that Rohto’s strength lies in its ability to firmly
grasp the needs of consumers and to make new
proposals quickly and honestly. However, we were notstrong enough in terms of steadily generating profits, andI saw the improvement of the efficiency of our businessas a challenge. I considered addressing these issues tobe my mission, and immediately after joining theCompany, I took the lead in planning business structurereforms and promoted them as a task for each and oneof us. At the same time, we are further improving theefficiency of marketing, which is one of our strengths,
and implementing effective promotions through amarketing mix.

Through these efforts, we have been able to establish
a structure that can ensure not only stable sales but also
profits, regardless in any circumstances. As we have now
achieved significant results in terms of financial
performance, we are convinced that these reforms were
not a mistake.
In 2019, we also formulated the Rohto Group
Comprehensive Management Vision 2030 with a view tothe ideal state of the Rohto Group. Under the slogan“Connect for Well-being,” we aim to create innovations invarious businesses and connect them widely so thatpeople all over the world can enjoy well-being for as longas possible. We aim to firmly connect colleagues insideand outside the Company to achieve this, and develop
human resources based on the chain of trust to create anorganization with a sense of unity, and connect to thefurther well-being of people.
In order to continue to deliver well-being to everyone, it
is important for us to operate a sustainable organizationand to grow continuously. By further implementing thesereforms and firmly connecting with our stakeholders, wewill strive to realize a society with well-being.

Masashi Sugimoto
President and Chief Operating Officer

Aiming for medium- to long-term growth by establishing six business areas
The Business Area Vision 2030, which was announced inconjunction with the management vision, defines six
business areas that we will focus on: (1) OTC drugs,(2) skincare, (3) functional foods, (4) ophthalmology,(5) regenerative medicines, and (6) contract development
and manufacturing organization (CDMO), and clarifies our
vision for each area. With self-care and self-medicationas our core, we are engaged in business to extend
healthy life expectancy and bring the world closer to therealization of a well-being world by proposing solutions toensure good health in daily life, pursuing professional
medication in the areas of regenerative medicines andophthalmology, and delivering our products and services
to a wider range of patients.
In our core business of OTC drugs, we have set a
vision of aiming to become a leading OTC company.
Furthermore, in order to maintain and strengthen our
existing categories, we are actively working to expand
into areas where we can still grow. One approach is todevelop in-house, and another approach is to incorporate
capabilities from outside the Company when theopportunity arises. At the end of August 2021, we
acquired 67.19% of the outstanding shares of Amato
Pharmaceutical Products, Ltd., which has been
manufacturing and marketing the hemorrhoid remedy

13

ROHTO Well-being Report 2022

BORRAGINOL® for 100 years, and made it a subsidiaryto strengthen the hemorrhoid treatment category. In
addition, we were among the first to develop a SARS
coronavirus antigen kit, Dotest COV19, using our in vitro
diagnostics technology, which is being used at medical
facilities and for self-checks. The spread of COVID-19
has increased awareness of self-care and maintaining
one’s own health, and we intend to continue to expand
our OTC area as we see opportunities.
The skincare business, which has become ourmainstay business accounting for 60% of our sales, hasbeen a major driver of our total sales expansion evenduring the COVID-19 pandemic. We are grateful to ourcustomers for their renewed appreciation of the researchand development capabilities we have built up over theyears. In these times when the opinions of consumers
have become widely known and it has become easier forcompanies to convey their messages, we believe that it isimportant for customers to understand not only ourtechnological capabilities but also our corporate stance.
We will continue to research sincerely and makecorporate efforts to deliver our products in a good form
to our customers. In addition, the increase in the amountof time spent at home and the reevaluation of needs forbasic skincare have greatly contributed to the growth of

ROHTO Well-being Report 2022

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Message from the President
our basic skincare products in the COVID-19 pandemic.
However, we consider it an issue that some categories,
such as lip balms, have not fully recovered due toinadequate proposals in response for changes in lifestyles
and preferences. Going forward, we will continue to offer
new proposals.
Furthermore, we are promoting the food business todevelop it into the third pillar of our core business. In
order to maintain their health, it is important not only torely on pharmaceuticals and healthcare, but also to careabout everyday diets. We see food as an importantbusiness area that can lead to pre-symptomatic andpreventive care. In the area of functional foods, Rohto V5,
which supports the maintenance of eyesight, continues
to perform strongly, and we intend to develop it into aneven bigger brand. In the area of food, our development
capabilities are still developing, and we must also expand
our sales network in the future. With the increase in thenumber of subsidiaries and business partners, we havemade progress in research and development
collaboration and have begun to acquire a wider sales
network. We will continue to leverage our online sales
capabilities cultivated through the sale of Senobic andRohto V5, while strengthening and expanding our othersales channels even further.
In terms of investment areas, we are moving forwardwith the ophthalmology field, regenerative medicines, andcontract development and manufacturing.
In the ophthalmology area, we are harnessing ourtechnical prowess as the manufacturer with the top
market share in the OTC drugs eye care category formany years, and developing ophthalmology medicines
along conducting regenerative medicine research in theophthalmology area and development of ophthalmology
devices. Regard to ophthalmology medicines, we havestarted domestic Phase I clinical trials in March 2022 for
ROH-202, a new Rohto development code, and a totalof three clinical trials are underway. In addition, thedevelopment of ROH-001, a drug aimed at inhibiting
myopia progression, is also underway. The developmentof prescription medicines is time-consuming and costly.
Although the upfront investment is significant. We aretaking on the challenge by specializing in ophthalmology

where we have the skills and expertise, and we see thisas a business that will further boost the Company’s
potential. Nitten Pharmaceutical Co., Ltd., which becamea Group company in March 2020, became Rohto NittenCo., Ltd. in April 2022. In fiscal 2021, it launched three
new generic drugs, which have significantly increased
sales. We intend to utilize the sales channels of Rohto
Nitten Co., Ltd. in the future for our pipeline currently
under development.
In the field of regenerative medicines, clinical trials forseveral indications such as cirrhosis of the liver, are goingreasonably well. We are now able to present a pipeline
and show progress so that everyone can easily
understand the current status. Although there have beensome delays due to difficulties in recruiting test subjects
as we handle rare diseases, development is progressing
smoothly.
In addition, we are also focusing on the surrounding
businesses of regenerative medicines. We have started abusiness based on serum-free culture media that wemanufacture and use for regenerative medicine, and wehave also started a business that undertakes cell
culturing itself, which could be called a regenerative
medicine version of CDMO. Going forward, we will
expand our potential in the cosmetics field as well. In
2018, we started clinical trials for a new challenge, the
PRP therapy AutoloGel System, to confirm its efficacy
and safety. We have now submitted an application for it
to be used as a medical device. We aim to propose a
new treatment method for intractable ulcers that have notshown improvement with existing treatments.
By expanding the scope of our business in this large
framework, we will proceed to make them major pillars interms of earnings as well.
We intend to develop each of these business areas tothe point where they contribute to our overall businessperformance on a business basis, thereby leading tomedium- to long-term growth. Also, rather than pursuingthese businesses in isolation, we will deepen cooperation
among them, “connect” them with a strong relationshipof trust, and unite them into a single entity that will lead tofurther well-being.

Strengthening corporate strength by investing in human capitalIn our Seven Pledges, which clearly state the values andcode of conduct that have guided the Company since its
founding, we state, “Our people are our greatest asset.”
When I joined the Company, I felt that Rohto is a goodcompany that values people. We are investing in humanresources with the aim of achieving further growth forboth the organization and our members while respecting
this fundamental principle. Every single one of ourmembers is important human assets. We believe thatmanagement is only as good as its people, and that thegrowth of a company is only possible through thedevelopment of its people. We are committed to humanresource development, providing support that draws out
the potential within each individual and fostering
independent individuals who can respond to a rapidlychanging and challenging business environment.
We continue to implement our unique system toencourage our members to actively improve themselvesand contribute to society and the organization.
Such as the External Challenge Work program topromote secondary employment, the Internal Double
Jobs program to encourage members to take concurrent
p o s i t i o n s , a n d t h e A s u n i w a p ro j e c t t o s u p p o r t
entrepreneurship. In addition, in fiscal 2021, we started
measuring Well-being Points. This is an initiative to check
whether each member is working with a sense of wellbeing on daily basis, and to promote career developmentwith a sense of mental and physical health, enjoyment,

and contribution to society. We have long been
a company that values people. In response to thechanging times, in 1999 we created a new personnel
system called Rohto WAY, and put in place a system thatfirmly evaluates results.
And now, as employment patterns, work styles, andthe environment have changed dramatically.
We are moving forward to revise our personnel system
in a more evolved manner. We are committed to further
human resource development to reward those who grow,and support those who are motivated to become
professionals, and to create a new form of humanresource development that is more in line with diverse
ways of working.
For sustainable management, it is important not only
to deliver well-being to society as whole and to keep theCompany itself in a state of well-being, but also tosteadily increase sales and profits. Thanks to yoursupport, we have continued to increase sales and profits,
and we plan to increase dividends for the 19th
consecutive year. Through our corporate activities, wewill contribute to the well-being of society and continue
to manufacture products with every one of our customers
who will use our products in mind, as we work together
with our stakeholders to build the society we aspire tocreate. We will continue to aim for a virtuous cycle that
returns benefits to society as a whole.

Reinforcement of management structure and establishment of the Sustainability Committee
From April 2022, we have moved to the Prime Market.
Against this backdrop, we have newly created six chief
officer positions to strengthen our management structure,
and are operating under a new organizational structure. In
addition, the Company has increased the number ofoutside directors to four in 2022 in order to utilize theirabundant experience and broad insight from outside theCompany in the management of the Company, as well as
to strengthen the supervisory function of the Board of
Directors and improve the transparency of management.

15

ROHTO Well-being Report 2022

Furthermore, in September 2021, we established theSustainability Committee in order to respond to society’s
demands such as addressing ESG issues and disclosing
non-financial information. We will strive to share values
with various stakeholders under an appropriate monitoring
system. With higher standards of governance, we will also
work to enhance corporate value over the medium to longterm and resolve social issues by achieving sustainablegrowth through realization of well-being, which is theunique value creation of the Rohto Group.

ROHTO Well-being Report 2022

16

Rohto's Value Creation Process

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Value Creation Process
Since its foundation, Rohto has delivered health to people all over the world through its business activities and has
acquired many assets, as well as business and cultural strengths. Rohto is now leveraging these assets andstrengths to develop, manufacture, and market a wide range of products and services, contributing to well-beingaround the world. As a public institution of society, we also return the profits we generate to our stakeholders andactively invest in the future to further strengthen our assets and strengths to create new value. Through this value
creation process, we aim to realize sustainable growth and a society with well-being.

Rohto’sbusiness model
Stable management andcreation of synergies throughstrategic selection and diversification

Difference
betweenaverage life expectancy
and healthy life
expectancy

Social issues

Realization of wellbeing

Manufacturing
capitalHuman capital
For details, see p.25

Regional disparities

OTC drugs

For details, see p.23

Business
partners

Brandstrength
Technologicalcapabilities

Maximizing humancapitalMateriality

Development
capabilities

Intellectual
capitalFinancial
capitalStrengths of Rohto

Business activities

Functional
foods

Global
Well-being
human
capitalRapid transition to a digitalsociety

Realizationof a society
withwell-being

For details, see p.26

Speedcapabilities

Contributing to theglobal environment

SkincareQuality
management
systemFor details, see p.24

Response tonatural disasters and infectious diseases

Rohto’s
employees andtheir families

Decliningbirthrate andaging population
Responding toclimate change

Consumers
and future
generations

Social andrelational capital
For details, see p.26

Natural capital

Ophthalmology
area

For details, see p.49

Regenerative
medicines

Coexistence withsocietyCountries
and local
communities

CDMO

Environment

Shareholders
and investors

Strengthening ofbusiness foundations
For details, see p.19

Sustainability
Corporate governance17

ROHTO Well-being Report 2022

For details, see p.39

For details, see p.59

ROHTO Well-being Report 2022

18

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Materiality (Key Issues)
In order to promote efforts to resolve priority issues in sustainability, we have identified five materialities (key issues)
from the perspective of ESG/SDGs that we should prioritize through business activities. We will promote initiatives
for each materiality to enhance corporate value and achieve sustainable growth.

Materiality and Related SDGs
Materiality (related SDGs)

Materiality Identification

Realization of well-being
through business

Materiality identification process

Step1

The Sustainability Committee analyzes global social issues and ESG

Identification ofsocial issues

trends with reference to various guidelines and norms such as SDGs
and GRI standards, and identifies issues.

Strengthen development
capabilities and competitivenessof businesses and well-being
products and services tocontribute to the realization of asociety with well-being

Main issues

Contributing to solving social issues in the medical, healthcare,and beauty area
Achieving both high-quality and fair prices in the provision of
products and services
Improvement of productivity and profitability through cost efficiency
business process review, etc.
(including promotion of DX)

p.27 Vision 2030

Discussions are held among senior management, including outside officers,
on the issues identified, and materialities are selected.
Viewpoints emphasized

Step2

Does it contribute to the realization of asociety with well-being, and contributeto the development of the Company
and society?
How much impact does it have on ourmanagement, including consistency
with our growth strategy?
Is it an ESG measure to be strengthened
to contribute to the enhancement of ourcorporate value?

Narrowing down
key issues

p.40 Our Commitment to Health

Identification of candidates
for key issues

High

Maximizing humancapital to enhance
corporate value

Planning a personnel system that supports the growth ofPromoting co-growth between
the Company and members(promotion of health and productivity management, improvement

autonomous individuals
Improvement of employee well-beingof engagement)
Promotion of diversity (diverse human resources and work styles)

Low

Ensuring occupational safety and healthHighp.44 Human Resources Initiatives

Step3

Assessment of validity
and identification ofmateriality

Materialities identified in step 2 are finalized by the Sustainability
Committee and approved by the Management Committee.

Contributing toa sustainable global
environment

Materiality Matrix
Most important

Impact to stakeholders

Fairlyhigh

Respect for human rights
Reduction of greenhouse gas emissions
Reduction of waste and promotion of recycling
Protection of water sources and biodiversity
Strengthening corporate governance and compliance awarenessand systems
Strengthening risk management and response capabilities

Strengthening of financial base to support stable management
Promoting CSR procurement
Coexistence with local communities and support for future
generations
Improve social trust and reputation through dialogue withstakeholders and information disclosure
Ensuring occupational safety and healthContributing to solving social issues in the medical, healthcare, andbeauty area
Achieving both high-quality and fair prices in the provision of
products and services
Responsible response to consumers (assurance of safety andsecurity of products and services)

Developing a personnel system that supports the growth ofautonomous individuals
Improvement of employee well-being (promotion of health andproductivity management, improvement of engagement)
Promotion of diversity (diverse human resources and work styles)
Planning a business and human resources portfolio from a longterm perspective
Improvement of productivity and profitability through cost
efficiency, business process review, etc.
(including promotion of DX)

Impact on our sustainable business development

High

Important

Fairlyhigh

Five materialities
Realization of “Well-being” through business3 Contributing to a sustainable global environment
5 Strengthening of business foundations
1

19

ROHTO Well-being Report 2022

Maximizing human capital to enhance corporate value
4 Coexistence with society
2

Prevention of global warmingand harmony with the naturalenvironment

Reduction of greenhouse gas emissions
Reduction of waste and promotion of recycling
Protection of water sources and biodiversity

p.49 Sustainable Global Environment

Coexistence withsociety
Building trust with stakeholders
to become needed and trusted
by society

Responsible response to consumers(assurance of safety and security of products and services)
Respect for human rights
Promoting CSR procurement
Coexistence with local communities and support for future
generations
p.54 Coexistence with Society

Further strengtheningof business foundations
Strengthening financial andorganizational foundations to
support sustainable growth

Strengthening corporate governance and compliance awarenessand systems
Strengthening risk management and response capabilities
Establishing a business and human resources portfolio froma long-term perspective
Strengthening of financial base to support stable management
Improve social trust and reputation through dialogue withstakeholders and information disclosurep.60 Corporate Governance

ROHTO Well-being Report 2022

20

Rohto’s

Rohto’s Vision

Value Creation Process

Sustainability

Corporate Governance

Data Section

Rohto’s Strengths

Brand
strength
Delivering timelessattractivenessIn the healthcare category, we have a broad lineup of products, including many
brands that have been loved by customers for a long time. Since the launch of
the V Rohto in 1964, we have delivered many products from the V Rohto series
and they are still loved by many people today. In addition, Hada Labo, which
was launched in 2004, has achieved the No.1 sold skincare brand*1 for 15
consecutive years. Our long-selling*2 and hit products are contributing to thehealth promotion of consumers.
*1 Number of units sold based on Intage SRI, SRI+ 5 Basic Skincare Categories (lotions, emulsions, beauty serums, creams,
face masks) Self + Medicinal Market: by major series from June 2007 to May 2017 (SRI), from June 2017 to May 2022
(SRI+)*2 Brands that have been continuously sold for more than 10 years since their launch and have sales of more than 1 billion
yen in fiscal 2021.

Long seller brands
14

Long sellers

23

brands92

5.0 billion yen
or more4

3.0 billion yen
or more8

1.0 billion yen
or more2
1
6

New products in fiscal 2021
(Only national brand products are counted. Limited edition products excluded.)Technologicalcapabilities
R&D capabilities
Wide range of research
fields21

ROHTO Well-being Report 2022

72

Quality
management
systemHigh quality cultivatedthrough pharmaceuticalmanufacturing

10 to 19 years 20 years or moresince launchsince launch

Customer thoughts and behavior have changed dramatically since the COVID-19
pandemic. In addition, as represented by Generation Z, the tastes and preferencesof customers are changing on a daily basis. The sales, marketing, and customer
support departments work together to develop products and make proposals thatmeet the needs of customers in a speedy manner, which is a long-lasting asset ofour company. Currently, we have established an environment in which not only
sales but also various departments such as marketing, production, anddevelopment can confirm realizations and signs in real time. We will continue tomake new proposals in order to deliver well-being to everyone every day.

Our manufacturing, quality control, and logistics base,
Ueno Techno Center, has a highly automated eyecare production line that enables us to produce awide variety of products. The high quality assurance
system and flexible production lines cultivated inpharmaceutical manufacturing, advanced aseptic andforeign material control technology, and centralized
control of test data using a quality information
management system(LIMS), etc., enablehigh quality andhighly efficient
production systems.
The center was the first Japanese pharmaceutical manufacturer to comply with FDA
Part 11*1, and has also acquired ISO13485*2 and CE marking*3, and is actively
promoting the provision of products overseas.

Speedcapabilities
Reading the times
and delivering
appropriately

items

With our know-how and perfection accumulated over 120 years, we areconducting research and development that pursues not only functionality andeffectiveness, but also comfort of use for a long time to come.
Our R&D activities cover a wide range of fields, including gastrointestinal
medicines, eye drops, hay fever treatments, skincare products, kampo-yaku(chinese herbal medicine), hair regrowth agents, in vitro diagnostics, contactlenses, skin care, odor care, functional foods, foods, agriculture, livestock
breeding, and regenerative medicines. The exchange of researchers internally in awide range of fields creates synergy across disciplines, and joint research
externally in a wide range of fields, both in industry and academia, makes new
discoveries and applications possible. We aim for further evolution.

*1 FDA Part 11 is standards for electronic records management stipulated by the U.S. Food and Drug Administration.
*2 ISO 13485 is an international standard on quality assurance specifically for medical devices.
*3 CE marking is used to indicate a product has passed European safety testing.

We are aggressively expanding overseas in cooperation with our subsidiary The
Mentholatum Company. Rohto Group products are currently sold in over 110
countries and the ratio of consolidated overseas sales to total sales is as high as
approximately 40%. Our businesses in East and Southeast Asia in particular are
driving our growth, and following Europe, North America, and Asia, we have now
established local subsidiaries in emerging countries in regions such as SouthAmerica and Africa to promote our business. This worldwide network is one of ourstrengths. In every region, we need to develop our business in accordance withnot only the climate, customs, and preferences of each country, but also theregulations of each country. While staying true to the important aspects of ourbrands and products, we engage in our business in each region with an emphasis
on our self-supporting manufacturings from development to sales and humanresource development.

GlobalLocalized
development

More than

110

Well-being
human capital
Customer perspective
Spirit of challenge

Happy surprise

2,866
cases

countries

We share Customer feedback with all of our members as Happy
surprised testimonials. We are grateful for and encouraged by
the voices of our customers, and incorporate them into productimprovements and the planning of the next products.
It all started in 1952 with a questionnaire postcard called
User’s voice survey card enclosed with Rohto Peni-my Eye
Drops. In the 70 years since then, we have treasured thefeedback we have received from our customers in various
forms, including postcards, phone calls, and emails.
In the ARK “Thinking about the Future of Rohto” project
launched in 2003 by volunteer members, they themselves havebeen thinking about and deciding what Rohto can do to help
create the world of tomorrow. In order to tackle medium andlong-term issues within a broad framework, a variety ofmembers, transcending divisions and generations, have cometogether to bring about numerous changes. This is also where
the External Challenge Work program and Internal Double Jobs
program were born.

(FY2021)

ROHTO Well-being Report 2022

22

Rohto’s

Rohto’s Vision

Sustainability

Value Creation Process

Corporate Governance

Data Section

Management Capital Enhancement
Manufacturing capitalIntellectual capital

Major production bases

improvements

Scale of patent assets

18 locations

10,6347 thComprehensive strength ofophthalmological medicine patents

1 st

R&D expenses

8.7 billion yen

Expansion of New Plant Building at Ueno Plant

Intellectual Property Strategy Backed by Advanced Technological Capabilities

The construction of the new plant building was undertaken to meet growing
demand, such as the expanding need for high-quality OTC drugs andexpectations for high-functioning cosmetics, due to the growing trend toward
self-medication. The warehouse began operations in February 2022, andproduction started in the plant building in September. The plant will start its
full-scale operations to serve as a production base for both domestic andoverseas markets. This plant will be a “smart plant” (i.e., a plant that is friendly
to people and the environment) that ensures worker safety and efficiency
through collaboration between robots and people, and aims to reduce energy
consumption by 20% compared to existing plants. We believe that the further
evolution of our mother plant, which serves as the base for our quality control
and logistics, will be the key to our future growth.

In the ranking of patents in the pharmaceutical industry, we were ranked 7th in terms of the scale of our patent assets
and 19th in terms of firms’ capability to prevent other companies from obtaining patents, based on both quality andquantity. Furthermore, in the ophthalmological medicine field, we were ranked first not only in the number of valid patents,
but also in the overall strength of ophthalmological medicine-related technology patents.
We will continue to contribute to the well-being of the society by linking our advanced research to the development ofnovel and highly unique products.
2020 Ranking of Pharmaceutical Industry Patent Asset Scale
F. HOFFMANN LA ROCHEMERCKPFIZER
BOEHRINGER INGELHEIM
INTERNATIONAL
Takeda Pharmaceutical

Rohto Group’s major production bases

Domestic subsidiaries

The Mentholatum Company (U.S.A.)
Ophthalmos S.A. (Brazil)

Qualitech Pharma Co., Ltd.
Shizuoka Plant/Shiga Plant

The Mentholatum Company, Ltd. (U.K.)

Rohto Nitten Co., Ltd. Nagoya Plant/Nagano Plant
Mayado Pharmaceutical Co., Ltd.

Dax Cosmetics Spolka Z Organiczona
Odpowiedzlalnoscia (Poland)

Rohto-Mentholatum (Vietnam) Co., Ltd.

Rohto
Pharmaceutical

Mentholatum Australasia Pty. Ltd.

Osaka Plant/Ueno Plant

Production DX
We are promoting a project to develop digital human resources and strengthen literacy in the production and procurement
department. We aim to bring agile development in-house by fundamentally reviewing the way we conduct business. In
addition, we are working to transform the new Ueno Plant building into a smart factory through information data linkage of
production facilities, visualization using CPS (Cyber-Physical System), and behavior analysis using 360° cameras.

MERCK
BAYER
F. HOFFMANN LA ROCHENOVARTISPFIZER
GLAXOSMITHKLINE
Otsuka Pharmaceutical

ABBOTT
SANOFI
Takeda Pharmaceutical
BRISTOL-MYERS SQUIBBMERCK SHARP & DOHMEGENENTECHAMGEN

Connecting Beyond Established Frameworks

Innovation Through Collaboration with Academia

Our strength is our wide range of research areas andproduct lines. We connect them beyond establishedframeworks to create new value. In order to connect
people to their health, it is important to take a holistic
approach, rather than providing value in separate fields.
We have established a system that allows us to utilize
external solutions in every aspect, including materials,
technologies, and human resources, as well as intraGroup connections, to link them organically and enhance
our R&D capabilities.

New healthcare solutions from eye information
A joint research agreement has been signed with the
Department of Ophthalmology, Graduate School of
Medicine, Faculty of Medicine, Osaka University and SAICo., Ltd. to create new solutions to improve systemic
health based on information obtained from the eye.
The joint research aims to create new healthcare
businesses such as personalized medicine and preventive
medicine by leveraging the ophthalmology knowledge,
diagnostic technology, information science knowledge,
and proprietary AI analysis technology of the joint research
partners, as well as the cohort data and product andbusiness development capabilities of the Company.

Sanyo Chemical
Industries, Ltd.

In 2005, we launched the “Kaisen-tai” to improve QCD (Quality, Cost, Delivery time) and to maintain and continue theimprovement cycle. With the basic stance of “try first and try to change things” that lead to QCD improvement, each andevery one of us is working with determination to achieve both quality improvement and cost reduction.
Three Pillars for Improvement Activities

Develop an eye for
spotting an issue

23

Specific
Improvement
Activities

Learn methods to solve
Create an environment
issues and increase thewhere issues can benumber of personnel
spotted easily
who can do it

ROHTO Well-being Report 2022

Ideas that cometo mind in FY2021

10,634

Technologies

Materials

Ands Corporation

5S (sort, set, shine,
standardize, sustain the
Discipline) activities

ASTRAZENECAABBVIENOVO NORDISK
Daiichi Sankyo
Rohto Pharmaceutical
BOEHRINGER INGELHEIM
INTERNATIONAL

Source: Research by Patent Result Co., Ltd. The spelling of the companies’ names is based on the names published by Patent Results Co., Ltd.

Improvement Activities at Production Sites

Looking for
improvements

PFIZER
Kowa Company
F.HOFFMANN LA ROCHE
BRISTOL-MYERS SQUIBBUNIVERSITY OF CALIFORNIA*Patents issued between January 1993 and September 9, 2022 are included.

Amato Pharmaceutical Products, Ltd.
Sanda Plant/Fukuchiyama Plant

Mentholatum (China) Pharmaceuticals Co., Ltd.
PT Rohto Laboratories Indonesia

Rohto PharmaceuticalSanten PharmaceuticalSenju Pharmaceutical
NOVARTISABBVIE

2021 Ranking of Capability to Prevent Other Companies from Obtaining Patents in the Pharmaceuticals Industry

Overseas

Tianjin Rohto Herbal Medicine Co., Ltd.

BAYER
Rohto Pharmaceutical
ASTRAZENECANOVARTISTOLERO PHARMACEUTICALSRanking of Overall Strength of Ophthalmological Medicine-Related Technology Patents*

Rohto PharmaceuticalCo., Ltd.
Qualitech PharmaCo., Ltd.
Rohto NittenCo., Ltd.

Manufacturing

Universities andresearch institutions

Bacchus Bio
innovation Co., Ltd.

Mayado PharmaceuticalCo., Ltd.
Overseassubsidiary

Interstem
Co., Ltd.

Pharma Foods
International Co., Ltd.

Amato Pharmaceutical
Products, Ltd.

MG PHARMA
Inc.

Contact pointwith customer

CAFE
COMPANY Inc.

Human
resources
Venturecompanies

Science Advisory Committee
We have established a Science Advisory Committee with
six experienced and knowledgeable scientists to further
accelerate our evidence-based R&D. We have invited
prominent professors in various fields to advise us on our
future research and business, while incorporating theirdiverse knowledge, and will receive guidance for social
implementation.
Utilization of big data
The Data Science Promotion Office was established within
the Basic Research and Development Division to accelerate
the creation of new value in R&D using data science.
ROHTO Well-being Report 2022

24

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Management Capital Enhancement

Human capital

Financial capital

Training cost per person

Ratio of female managers

ROE

Equity Ratio

81,410 yen

31.1 %

12.6 %

64.8 %In order to contribute to the realization of a wellbeing society and to ensure our sustainable growth, it is important foreach and every one of our members, who are responsible for constantly creating new value, to grow. We are committed
to human resource development through a variety of measures, and have launched a new initiative to further strengthen
our human capital.
Human Resources Initiatives p.44

An Organization That Continues to Learn
We are constantly taking on new challenges, such as entering new businesses. In addition, advances in technology areaccelerating changes in the world around us, and the future is becoming more chaotic in the age of VUCA due to factors
including infectious disease outbreaks, natural disasters, and conflicts, and other factors. Each and every member’ssituation will change as he or she moves into a new department or life stage, and new learning will be required
accordingly. In order to create the world of tomorrow, we are focusing on developing future insight and creating anorganization that can continue to learn and change.

Maintaining a Stable Financial Base and Achieving a Capital Policy That Leads to Sustainable GrowthIn fiscal 2021, consolidated sales were 199.6 billion yen (181.2 billion yen in the previous year) and operating income was
29.3 billion yen (22.9 billion yen in the previous year), reaching record highs at each income level. As a result, the equity
ratio as of March 31, 2022 was 64.8%, and we received a long-term issuer credit rating of “A+” with a “Stable” outlook
from Japan Credit Rating Agency, Ltd. (JCR) in recognition of its overall financial soundness, including virtually debt-freemanagement and high operating margin of over 14%. While we are actively investing in growth through M&As andinvestments in new businesses such as regenerative medicine, we maintain financial soundness by paying attention to
the balance between earning power and investments, including a solid investment policy that is conscious of investments
within the range of positive free cash flow while ensuring stable cash flow generation through our OTC drugs andskincare businesses. This stable financial foundation has enabled us to increase dividends for 18 consecutive terms, andwe will continue to invest in growth and distribute profits appropriately to shareholders, employees, and otherstakeholders while securing sufficient funds for medium- and long-term investments by generating further operating cashflow.

DX training for all employees
As the digital shift accelerates and the models of society and business are rapidly changing, each and every employee working in thefield must have a new perspective and apply it to their work in order to improve the value we provide to our customers. In May 2021, we
held an e-learning DX literacy training for all employees to deepen their insight and have a common understanding of DX. In addition,
employees volunteering from each department were given advanced training, and DX leaders were created in each department. By having leaders with a high level of perspective within each department, rather than in the systems department, initiatives to solve issues withDX are being created one after another.

Learning from new comers
As part of our training program for new comers, We have a “Newcomer Teachers Day” which is a day for newcomers to present to theircolleagues on their areas of expertise, such as their study fields from their colleges or trends among young people.The training is not aone-way presentation about companies or business, but rather an opportunity that aims for “co-development” for new comers andoldies. Currently, new comers are temporarily assigned to several departments during the two months period before being assigned totheir new positions, and they are playing an active role as bridges between departments, which not only revitalizes the company but also
leads to the growth of the training leaders of each department themselves.

Social capital
Rohto Group

82 companies

Number of points of purchase
More than

100,000 stores(in Japan)

The Rohto Group has 82 companies around the world, each of which has partnerships with suppliers and business
partners to establish product distribution systems. In addition, our trust relationships with external research institutions,such as universities and companies, serve as a driving force for creating new value not only in R&D, but also in a variety
of other settings. We also value direct and indirect relationships with our customers and strong engagement with ourshareholders and investors, and will continue to strengthen our trusted relationships with each stakeholder.

Establishment of a learning platform
We launched the Rohto Academy in 2021. It is a learning platform that enables members
to face their own careers and choose the skills they need to learn so that they cancontinue to learn proactively. Focusing on content to enhance future insight, a total of 1,300 people have voluntarily enrolled in the firstyear since its establishment.

Enhancing Employee Engagement - Well-being Points We have started measuring “Well-being Points,” in which each member is asked to express how he or she is “now”
dealing with work on a daily basis with 1 to 10 points for five items. By reevaluating their own well-being and gain insights
through discussions within the team, aiming for a better state for the team as a whole. The purpose of this program is tohelp build a stronger organization by allowing management to visualize where they are now and to have a dialogue about
the the events and reasons behind the current situation. In order to achieve a society with well-being, we will practicemanagement that enhances the well-being of our members, who are the bearers of that mission.
1.I am able to serve and contribute to society through my work.
2.I enjoy my work and enrich my life.
3.I feel that I have grown through my work.

25

ROHTO Well-being Report 2022

4.I have goals for the future and have high expectations for myfuture career development.
5.I am part of a team and contribute to teamwork.

Sales and marketing network that enables a wide range of product development
Our role is to contribute to the self-medication of consumers through a wide range of product categories, including OTC drugs, skincare,and functional foods. We have established a sales and marketing network through various channels, including drugstores, convenience
stores, supermarkets, department stores, and e-commerce, to enable our customers to access our products anytime, anywhere,
thereby enabling us to offer a wide range of products.
We also hold various workshops to enable us to provide information beyond our business activities to retailers who deliver products
and health information directly to customers.

Women’s Health Lab
To support the health of women and the next generation, we have been holding study groups since 2018 to learn, think, and act together
to create the future, transcending the positions of business partners (retailers) andmanufacturers.
Networks connect the world and all kinds of knowledge and information are easily
disseminated, but biased information and excessive ideals are seriously affecting thehealth of women and the next generation.
Thirteen companies are participating in the fourth phase of the study group ascolleagues who are learning and confronting the issues facing society.

ROHTO Well-being Report 2022

26

Rohto’s

Rohto’s Vision

Rohto Group Comprehensive Management Vision 2030

Value Creation Process

Education

Lifestyle

Regenerative
medicines
Ophthalmology
area

Healthcontent
service

Aim to be a leading company of OTC drugs
in Japan
The concept of self-medication is becoming increasingly important amidst the trend of expanding medical costs. In
addition, demand for self-medication is expected to increase further, as the scope of the self-medication taxation system
will be expanded from April 2022.
OTC drugs will be indispensable in contributing to the extension of healthy life expectancy. We aim to become a leading
company in OTC drugs by leveraging our long-standing technologies and brand strength. Leading is not necessarily
limited to size, but to being the industry leader in terms of customer satisfaction, market impact, and contribution to healthawareness. In addition to existing eye-care products, skincare products, gastrointestinal medicines, kampo-yaku, and test
kits, we will aggressively take on the challenge of entering the categories that meet the needs of an aging population andwomen’s health. As well as focusing on technological innovation to maintain the superiority of our development andtechnological capabilities that form the foundation of our business, we are actively establishing an organic research
structure by conducting joint research with venture companies and researchers in Japan and overseas. We will also
strengthen alliances with other companies, including those in other industries, as necessary.

SkincareTOPICS 1

CDMO

OTC
drugs

Data Section

OTC drugs

Rohto will continue to contribute to the beauty and health of people around the world and continue to be a company
that people around us expect to exist.
In February 2019, Rohto Pharmaceutical celebrated the 120th anniversary of its founding, and in order to clarify
its aspirations, we have established the “Rohto Group Comprehensive Management Vision 2030,” which outlines
our vision for the year 2030. In addition, we have also clarified the business domains that we will focus on over the
next 10 years, and established the “Business Domain Vision 2030” as the vision we aim to achieve in each domain.
By connecting people all over the world with health, we aim to deliver well-being to people around the world andachieve a sustainable society where people can live long, healthy, and happy lives.

Data

Corporate GovernanceCore Businesses

Connect for Well-being

Connect businesses andcreate new synergy

Sustainability

Regional
development

Functional
foods
Agriculture

Self-checkdeviceNo. 1 in the comprehensive ranking of ophthalmic medicine patents.
Continuously evolving eye care

For more than 110 years since the launch of Rohto eye drops in 1909, we havecontinued to conduct research to respond to the effects of lifestyle changes on
the eyes. In the latest ranking of ophthalmic drug-related technologies, thecompany ranked first in terms of the number of active patents and continued tolead the list. In addition to the number of patents, the company received thehighest rating of “A+++” for its patents that are attracting attention from othercompanies and for its patent score, which indicates the degree of attention given
to individual patents, and was ranked first in terms of overall patent strength.
We will further evolve our technologies to deliver health to the eyes of the world.
Source: Research by Patent Result Co., Ltd.

Healthtourism

TOPICS 2

Business Area Vision 2030
HealthyPre-symptomatic state

Minor diseases

Diseases
Areas to quickly realize profitability(2) Skincare(1) OTC drugs

Provide highly functional skincare
products that apply the uniqueknowledge of a pharmaceuticalcompany

Aim to be a leading company of
OTC drugs in Japan(3) Functional foods and food products
Develop food business based on evidence and trust as our third pillar

Global business(4)
Ophthalmology
area

(5)
Regenerative
medicines

Cultivate the area ofophthalmology as aleading company foreye-care products

Commercialize
innovative life
science technologies(6)

Amato Pharmaceutical Products, Ltd. became a subsidiary. Strengthening
the Hemorrhoid Remedy Category

In August 2021, we acquired Amato Pharmaceutical Products, Ltd. as a
subsidiary, which is engaged in the hemorrhoid treatment BORRAGINOL®.
BORRAGINOL® has been a long-selling product for 100 years, and thecompany's products have a leading position and high market share in bothprescription and OTC drugs in the hemorrhoid medication category.
By leveraging the sales network and marketing know-how of ouroverseas subsidiaries, we intend to grow the company significantly anddeliver our products to customers all over the world in the future.

CDMO
Evolve into a contractdevelopment andmanufacturingorganization withunique development
skillsAreas to realize profitability over the medium to long term

TOPICS 3

Sales of rapid COVID-19 antigen test kits

We obtained the approval to manufacture and market the rapid test kit forcoronavirus (SARS-CoV-2) antigen, and began sales in June 2021. We willcontribute to people’s health through medical institutions and pharmacies.
Related article on p.34
For general consumers

27

Self-care and self-medication

Professional medication

Core businesses

Growth investment businesses

ROHTO Well-being Report 2022

For medical institutions

ROHTO Well-being Report 2022

28

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Core Businesses

SkincareFunctional Foods and Food Products

Provide highly functional skincare products that apply
the unique knowledge of a pharmaceutical company

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

In the skincare business, which already accounts for more than 60% of our sales, we will continue to promote evidencebased R&D that pursues safety, efficacy, and mechanisms. Our strength lies in continuous provision of highly functional
products based on the application of findings obtained in the process of regenerative medicine research and coretechnologies accumulated over many years of research. With an eye on DX, we will implement marketing that builds cocreation relationships with customers, and we will capture changes in preferences and behavior over time to makeproposals that will enrich people’s lives.

Focus areas

Functional foods are an area that can be a substitute for pharmaceuticals with the greatest potential for growth by 2030,
and we are developing highly differentiated products targeting unmet needs in this field. We are striving to enhancecustomer satisfaction by fully utilizing the material technologies, manufacturing facilities, sales routes, and customer
relationships of the Rohto Group and its partners, and are working on development in the areas of eyes, pregnancy,
menopause, lifestyle-related diseases, skin, and immunology as our priority issues. We are also exploring and developing
collaboration and branding with different industries.

TOPICS 1

Moisturizing and barrier
functionsApplication of tissue regeneration technology
Develop next-generation skincare products applying expertisefrom tissue regeneration technology and regenerative
medicines to skincare

Develop functional skincare
p ro d u c t s b a s e d o n c o retechnologies for strengthening
moisturizing and barrier
functions

Anti-aging care
Search for ingredients effective
for dry fine lines and elasticity,and develop products suitable
for aging skin

Rohto V5 that grewsignificantly in Japan,
starts overseas expansion

Rohto V5, which has grown significantly since its launch in2015, and has recently grown 146%* year-on-year to support
our growth, has also started its overseas expansion, withsales to begin in Hong Kong in 2020, and we are steadily
nurturing its growth.
We will continue
the overseas
expansion with afocus on Asia.

TOPICS 2

Growth of supplements for children

Clear Vision Junior EX (sold exclusively throughophthalmology departments) and Clear Vision Junior (mailorder, etc.), supplements containing crocetin that support
children who work hard every day, grew 153%* year on year.
At the Wellness Food Award 2021, a food award focusing on
foods and food ingredients that improve people’s quality oflife, we received the overall Grand Prix and the Gold Award in
the OYATSU (snacks) category.
*Shipment volume (April 2021 to March 2022)*Shipment volume (April
2021 to March 2022)

Skin tone
Development of skin careproducts to maintain evenskin without blemishes, acne,or color irregularities

Scalp and hair care
Development of productsthat maintain healthy
hair and scalp, such as
medicated hair growth andhair regrowth agents andscalp care products that
help their penetration

Odor control
Elucidate odor occurrence
mechanisms and develop
technologies for controlling
odor

TOPICS 3

Capital and business alliance with CAFE COMPANY Inc.

We entered into a capital and business alliance with CAFE COMPANY Inc. in August 2021.
By combining our functional materials and production technology capabilities with CAFECOMPANY’s food-based community planning, store operation,
product development, and food industry network, we will further
support healthy lifestyles for many customers, accelerate ourcommunication to the world, and strengthen our structure tocontribute to society through healthy, fun, and delicious “food”.

Rapid growth of Melano CC
Melano CC, the predecessor of the serum (Melano Buster) to address concerns, was launched in 2009. Since then, thelineup has expanded from a serum to a lineup of products in pursuit of functionality, and currently ranks third in terms of
popularity* within our skincare brand. The brand will expand to a men's series in 2021, and the Deep Clear Enzyme Face
Wash, launched in March 2022, is selling well and has high expectations for the future.
*Shipment volume

2011 brand ranking

1stHada Labo29

2nd
Mentholatum

ROHTO Well-being Report 2022

2021 brand ranking

3rd

1st

50 Megumi

Hada Labo

2nd
Obagi

3rd

TOPICS 4

MG PHARMA Inc. Launches functional foods containing METAP®

Subsidiary MG PHARMA Inc. jointly developed “Cheese Steamed Buns” & ”Chocolate Steamed Buns” with other companies in March2022 as the second product in the Foods with Functional Claims and Health Support Premium Series containing the proprietary
ingredient globin peptide (METAP®), following Hokkaido Wheat Tsubu-anpan, the first anpan in Japan labeled as a food with functional
claims. METAP® is a peptide mixture developed by MG PHARMA, Inc. after more than 30 years of research, containing the Valine-ValineTyrosine-Proline (VVYP) tetrapeptide, which is known to have strong inhibitory activity on neutral fat elevation. We will continue to help
support customers’ health with bread, a food that is easy to eat
and easy to incorporate into daily life.

Melano CC

ROHTO Well-being Report 2022

30

Rohto’s

Rohto’s Vision

Sustainability

Value Creation Process

Corporate Governance

Data Section

Rohto’s Future Growth Areas
Ophthalmology Area

Regenerative medicines

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

Commercialize innovative
life science technologies

Harnessing our technical prowess as the manufacturer with the top market share in the OTC drugs eye care category formany years, we will cultivate the ophthalmology area as a new business area and grow it into a pillar of our future profit
growth. In March 2020, we acquired Nitten Pharmaceutical Co., Ltd. (currently Rohto Nitten Co., Ltd.), an ophthalmology
medicines manufacturer, securing resources for manufacturing and sales. Currently, we are developing ophthalmology
products by working closely with other companies, while we also conduct regenerative medicine research in theophthalmology area and development of devices for ophthalmology, with the aim of achieving early monetization of theseproducts.
Pipelines of Ophthalmology Area (as of October 2022)
Stage
DomainOphthalmology
area

Code

Indications

Partners

Non-clinical

P1

P2

P3

Application

Target*1

ROH-101

CMV*2
Cornealendotheliitis

Japan

Théa,
M’z Science

Approval in
2025

ROH-201

Dry eyes*3

Japan

Japan Tobacco

Approval in
2027

ROH-202

Ophthalmic
treatment agent

Japan

D. Western
Therapeutics
Institute, Inc.

—

ROH-001

Myopiasuppression

Japan

TsubotaLaboratory, Inc.

—

*1 Targets are for Rohto and are not agreed upon by partners.

TOPICS 1

Planned regions*2 Cytomegalovirus

Stage
DomainDevelopment of contact lenses

ROHTO Well-being Report 2022

Cell type

Humanadipose-derived
stem cells

Name changed from Nitten Pharmaceutical Co., Ltd. to Rohto Nitten Co., Ltd.

We have been selling soft contact lenses since 1999. In March 2022, we launched a new one-day replacement contact lens, C Cube
Rohto 1 Day Fresh View Air-Rich (1 Day Fresh View AR), which consists of silicone hydrogel. In June 2021, we received approval to
manufacture and market 2-week replacement silicone hydrogel lenses, which we plan to sell through Rohto Nitten Co., Ltd. We willachieve high quality and low cost with the aim of growing the eye care business in the Rohto Group.

31

Pipelines of Regenerative Medicines (as of October 2022)
Code

Regenerative
medicines

Planned regions

ADR-001

Cirrhosis of the
liver

Japan

ADR-002K

Serious heart
failureJapan

To be completed
in FY2022

ADR-001

Kidney diseases

Japan

To be completed
in FY2022

ADR-001

Serious leg
ischemiaJapan

To be completed
in FY2024

ADR-001

Lung fibrosis

Japan

To be completed
in FY2023

ADR-001

COVID-19
Pneumonia

Japan

To be completed
in FY2022

Neurodegenerative
diseasesJapan

To be completed
in FY2023

Traumatic
cartilage defects

Japan

To be completed
in FY2022

Osteoarthritis

Japan

To be completed
in FY2024

Human umbilical
UDI-001
cord-derived
stem cells
Cartilage cell
kit*2

Partners

Non-clinical

P1

P2

P3

Application

Target*1

Indications*3 Dry eye patients including those with Sjögren’s syndrome

Nitten Pharmaceutical Co., Ltd., which became asubsidiary in March 2020, celebrated its 60th anniversary
in 2021. The company changed its name to Rohto Nitten
to deepen cooperation with Rohto, as well as to broaden
the scope of its business by adding medical device
business, etc. that deals with such products as contactlenses and lacrimal duct tubes, to the generic eye drop
business that has existed since its establishment. By strengthening ourcollaboration with Rohto Nitten Co., Ltd., we will contribute to eye care forpeople around the world through a wide range of products and services fromeye drops to eye care, including the development and introduction of superior
eye-care products that cannot be found anywhere else, as well as future entry
into prescription medicines.

TOPICS 2

In order to respond to unmet medical needs for which there are still no satisfactory treatment methods, we are conducting
research and development of regenerative medicine and other products using stem cells. We are developing a proprietary
regenerative medicine technology by leveraging our “cell-handling technology” cultivated through many years of researchand development in the fields of ophthalmology and dermatology, and our “sterile formulation technology” for mass
producing eye drops. Since establishing the Regenerative Medicine Research & Planning Division in 2013, we havefocused on regenerative medicine and biotechnology business. In the development of regenerative medicine products
using human adipose-derived mesenchymal stem cells, we started clinical trials for liver cirrhosis in 2017, and are currently
conducting clinical trials for six diseases, including a trial for the treatment of severe pneumonia caused by COVID-19,
which started in August 2020. In March 2021, we acquired Olympus RMS Corporation (currently Interstem Co., Ltd.),
which promotes regenerative medicine approaches in the field of orthopedics, and are also working on drug developmentusing cultured cartilage cells for diseases around the knee, where there are many target patients. By linking theseregenerative medicine with our existing businesses, we will strive to create new well-being that only we can offer.

To be completed
in FY2022

Shionogi*1 Targets are for Rohto and are not agreed upon by partners. *2 Produced by Interstem Co., Ltd. (our subsidiary)

TOPIC

Businesses peripheral to the regenerative
medicine business are also growing

The culture medium used to culture mesenchymal stem cells contains
various proteins, many of which are derived from animals (including
human) or animal cells (including human cells). In order tominimize the risk of contamination by infectious agents thatmay pose a health hazard to patients, we have developed
a serum-free medium (AOF medium) called R:STEM that iscomposed of non-animal-derived ingredients. In addition
to using it for our regenerative medicines research, we arealso engaged in marketing business of the medium.

AOF medium,a new common practice for stem cell culture, was createdin the course of developing regenerative medicine.
Serum culture medium

Serum-free medium

Serum or plasma-containing medium(usually using bovine or humanserum)

Medium not containing serum

Xeno-free medium
Medium containing no xenogenic components

AOF medium

Medium containing no
animal-derived
components

ROHTO Well-being Report 2022

32

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Rohto’s Future Growth Areas

Contract Development and Manufacturing Organization (CDMO)
Evolve into a contract development andmanufacturing organization with unique development skills
We will evolve our current contract manufacturing organization (CMO) business to achieve competitive advantage by
promoting our contract development and manufacturing organization (CDMO) business, which provides a one-stop shop
for the development and manufacture of bio-field products by leveraging our unique development capabilities. We arepromoting contract development and manufacturing leveraging our advanced technology and know-how with Qualitech
Pharma Co., Ltd. for internal medicines, with Rohto Nitten Co., Ltd. for ophthalmology medicines, with our researchfacility and plants in Kyoto (Cell Factory Kyoto) and our specific cell-processed product manufacturing facility in Daiba,
Tokyo and Interstem Co., Ltd. for regenerative medicines.

TOPICS 1

Cell Factory Kyoto

TOPICS 2

We have established Cell Factory Kyoto (cell manufacturing
plant) in our Research Village Kyoto. Along with the
manufacture of its own cell preparations, it conducts contract
manufacturing of investigational drugs and regenerative
medicine products.

TOPICS 3

Reinforcement of Qualitech
Pharma Co., Ltd.

We will establish a new research laboratory (Kakegawa
Laboratory) in the Shizuoka Plant of Qualitech Pharma Co.,
Ltd., our subsidiary, to strengthen the system for contractdevelopment and manufacturing to meet customer needs.
Construction began in March 2022 and is scheduled to becompleted by the end of the year.

Contract manufacturing agreement with Human Life CORD Japan Inc.

In February 2022, we entered a contract manufacturing agreement with Human Life CORD Japan Inc. for the production ofmesenchymal stem cells from umbilical cords collected in Japan. Human Life CORD Japan Inc. is a company that is engaged in researchand development with the aim of becoming the first in the world to commercialize umbilical cord-derived mesenchymal stem cells as apharmaceutical product, in order to bring cell medicine as soon as possible as a new treatment option to patients and their families
suffering from intractable and rare diseases for which no established treatment is available even now. We plan to license the technology
to enable more reliable production using our manufacturing know-how of ADR-001 (cell preparation consisting of allogeneic MSCs) for
use in corporate clinical trials for regenerative medicine using allogeneic MSCs. Going forward, we will fully develop our CDMO businessfor cell manufacturing and contribute to the delivery of regenerative medicine to more patients through cell manufacturing.

TOPICS 4

Regenerative medicine x CDMO

Starting in January 2022, we began contracted cell culture processing services from medical institutions. In addition tocartilage cells cultured inhouse, Interstem Co., Ltd. provides contract services mainly for processing adipose-derived
mesenchymal stem cells in collaboration with the Company. In addition, we provide high-quality and stable stem cell
contract processing using a technology that enables cell processing in a completely serum-free medium without using
human or animal-derived serum.

High-quality and stable stem cell culture technology

No use of raw materials of animal or human origin
Enabled the provision of highly safe regenerative medicine
that takes immunogenicity and infection risks into
consideration
Animal-derived*Eye drop production line
Culture technology used forclinical trials

33

ROHTO Well-being Report 2022

Quality control cultivated throughsterile manufacturing technology foreye drops

Human-derived

Quick response from all perspectives enabled
by multifaceted business development
We are engaged in businesses that contribute to “health” fromvarious perspectives in a wide range of categories. Even withregard to COVID-19 that society has faced, we have been quick totake action, emphasizing on things we can quickly contribute with
our technologies and knowledge.

For

Corporate clinical trial of regenerative medicine for severe COVID-19 pneumonia
It is believed that a phenomenon called “cytokine storm,” in which cytokines produced by the infected person’s immune
cells to fight the virus become uncontrollable and continue to be released, is involved in the severe manifestation of new
Covid-19. It is believed that treatment against “cytokine storm” is necessary in addition to elimination of new Covid-19
itself. MSCs are believed to offer anti-inflammatory effects driven by multiple mechanisms and are expected to beeffective for patients who do not respond to COVID-19 drugs approved in Japan.
We believe that establishing a MSCs-based therapy in Japan will be useful in combating COVID-19 and future
infectious diseases. A Phase II study for COVID-19 severe pneumonia patients using “ADR-001,” a cell preparation using
adipose MSCs from other families, which we are developing, has been underway since June 2021.

Rapid COVID-19 antigen test kits contribute to prevention of infectious diseases
We possess technologies gained through research, development, and manufacturing of in vitro diagnostic products,
including pregnancy test kits. By applying our technology for rapid influenza virus antigen test kits (Check Flu A and B),
we immediately started the development and manufacturing of a rapid COVID-19 antigen test kit, Check MR-COV19,
which detects nucleoproteins of COVID-19 (SARS-CoV-2) in nasopharyngeal and nasal swab fluid byimmunochromatographic method, and launched it in June 2021. It is used by medical institutions to prevent the spreadof COVID-19. We also launched Dotest COV19 for pharmacies from the Dotest brand, our leading brand of pregnancy
and ovulation prediction test kits. Because the product does not require a dedicated measuring device, it enables simple
and rapid testing and is being used for the prevention of infectious diseases. The
performance of the test kit is evaluated through joint research with Osaka City
University Graduate School of Medicine. We will continue to actively conduct
R&D in industry-academia collaboration and contribute to people’s health bymeeting the needs of medical institutions and patients.

Responding to customer concerns with Hand lotions and hand sanitizers.
With the spread of the new Covid-19 infection, awareness of the need for cleanliness and hygiene has increased, and wehave started to develop a product that protects the moisture of hand skin against dryness of hand skin caused byrepeated hand washing and disinfection. In August 2020, we launched Mentholatum Hand Lotion 70 (R MentholatumGA70), a hand lotion containing ethanol designed to clean and moisturize hand skin, and in August 2021, we launched
Mentholatum Hand Veil Willfree Milk (R Rohto Medicated Hand Milk NM). This disinfectant can be used for hands that are
rough from disinfection, and amid changing lifestyles, we continue to develop products
in order to solve the problems of customers and deliver healthy lifestyles along with thetimes.
Prior to these efforts, we first established the “Medical Institution Support Office for
COVID-19 Response” in April 2020, an organization under the direct control of the
President, to provide support to medical professionals who are working day and nightwith dedication on the frontlines of medicine. Through our business and in areas notdirectly related to our business, Rohto and our members continue to earnestly
consider what we can contribute as a member of society and continue its activities.

ROHTO Well-being Report 2022

34

Rohto’s

Rohto’s Vision

Sustainability

Value Creation Process

Corporate Governance

Data Section

Global Expansion
Delivering New Value to the World Through the Provision of Health

Our main brand, Deep series for topical anti-inflammatory analgesics is performing well. Furthermore, cosmetics by Dax
Cosmetics are growing, and skincare products such as Hada Labo Tokyo are also expanding in the UK and the Middle East.
Moreover, the development of the eye drop market has begun with the acquisition of CE marking. Further development is
expected in the future.

EuropeWe will contribute to well-being from multiple perspectives by taking a country-specific approach to climate,regulations, logistics, etc., while staying close to local cultures and customs.
Net sales

Collaboration and Synergy Enhancement among Group Companies
We aim to deepen cooperation and improve efficiency not only in product development but also in demand forecasting,systems for receiving and placing orders, and import and export operations among countries, while at the same timeexchanging researchers and improving synergies in the marketing department.

Operating income(billions of yen)

10.2
8.3

7.0

8.6

8.7

Share of net sales
0.5(billions of yen)

8.1
0.3

4.8

0.4

0.4

0.3

(%)

5.5
3.7

4.1

0.2

4.6
2.5

Localization
While maintaining the important qualities of our brands, we are promoting development and proposals that are suited to
local markets, adapting them to the customs, climate, and preferences of consumers in each country, and to theregulations and business practices of each country.

2016

2017

Americas
Americas

EuropeAsia

Net sales10.2 billion yen

2019

2020

2021 (FY)

2016

2017

2018

2019

2020

2021 (FY)With the recovery of consumer confidence, eye drops grew profitably supported by the launch of new products. Our major
brands, OXY, Mentholatum, and Softlips, performed well and have achieved a V-shaped recovery. In Canada, major brands
OXY and Deep Relief (topical anti-inflammatory analgesic) are performing well. With the acquisition of Hydrox Laboratories, thescope of our business has also expanded.
Profit margin has declined due to higher procurement costs for raw materials and supplies, as well as a worsening cost of
sales ratio due to labor shortages, which is needed to be addressed.

Net sales

10.0 billion yen

Japan

Net sales
55.9 billion yen

Operating income
0.5 billion yen

2018

Operating income
0.2 billion yen

Net sales

Operating income

8.7

9.3

10.0

9.1

(billions of yen)

Share of net sales
0.5

0.4

7.7

6.9

121.4 billion yen

Operating income
8.3 billion yen

Net sales(billions of yen)

0.3

0.3

(%)

6.0

4.8

0.2
3.1

Operating income
19.5 billion yen

0.1

3.1
2.2

1.4
2016

2017

2018

2019

2020

2021 (FY)

2016

2017

2018

2019

2020

2021 (FY)Global Brand Expansion (Example)
Japan
Japan

Sales in Japan, which is led by Rohto, accounts for 60% of the Group’s sales. Sales of sunscreen, which declined in the wakeof COVID-19 pandemic, have recovered, and skincare sales are strong. Sales of eye care also increased thanks to thecontribution of high-value eye drops, and new in vitro diagnostic products have greatly expanded the scope of business. On
the other hand, a culture of people wearing masks continues to be a challenge for colored lip balms.
In addition to Rohto, Group companies are gradually gaining their strength. Rohto Nitten Co., Ltd., Qualitech Pharma Co.,
Ltd., and Amato Pharmaceutical Products, Ltd. performed well, and the performance of pharmaceuticals, including OTC drugs,
is expected to continue to be strong.

96.9

Share of net sales

Operating income

Net sales(billions of yen)

19.5

(billions of yen)

105.2

112.2

115.8

115.6

121.4
12.2

10.0

13.2

11.6

10.4

14.9

14.7

Americas

EuropeEye drops

Lip balms

16.1

12.7

12.8

11.8

(%)

Asia

Skin Aqua
2016

2017

2018

2019

2020

2021 (FY)

2017

2018

2019

2020

2021 (FY)

Delivering new values to brands mainly in skincare and eye care, Asia is a key region accounting for 28% of the Rohto Group’s
total sales. In China, the decline in sales of our major brands, lip balm and sunscreen, has recovered, and eye care is also
performing well. In addition, growth in the e-commerce market is significantly driving our sales. In Hong Kong, 50 Megumi
continues to grow strongly, while eye care and Hada Labo are also performing well. We are also gradually developing themarket for supplements. Hada Labo is also doing well in Taiwan and Malaysia.

Asia

Operating income

Net sales(billions of yen)

41.9

2016

47.4

51.7

53.0

55.9

Share of net sales(billions of yen)

48.1

11.6

12.0

6.9

7.2

6.5

5.7

4.9

12.6

8.3

13.6

(%)

Acnes

Hada Labo

14.9
14.4

50 Megumi
2016

35

2017

2018

2019

ROHTO Well-being Report 2022

2020

2021 (FY)

2016

2017

2018

2019

2020

2021 (FY)ROHTO Well-being Report 2022

36

Rohto’s

Rohto’s Vision

Value Creation Process

Sustainability

Corporate Governance

Data Section

Global Expansion

TOPICS 1

Obtained CE marking and started expanding eye drops worldwide

TOPICS 4

Hada Labo brand loved around the world

Rohto sells eye drops in Japan and other countries, and Rohto has become the No. 1
eye care brand* in the world. Starting in Hong Kong in 1983, Rohto led the Asian eye
care market, and in 2003, it began its expansion in the United States, and then in
Mexico and the Americas. In 2019, Rohto also began selling its products in Africa,
promoting eye care awareness in each region.
The acquisition of CE marking in March 2020 enabled us to sell our products in
European countries, starting with the UK and Poland in May 2021, and in October, we
expanded our sales network to South Africa. Rohto Dry Aid, which has started its
expansion in Europe, is an eye drop that stabilizes the oil layer of tear fluid and relieves
the dry eye symptoms that many people suffer from worldwide. It is said that the
number of dry eye patients will increase in the world in the future along with the aging
society and the spread of digital devices. We will continue to bring eye health toeveryone around the world.

Hada Labo is loved not only in Japan, but also around the world, and overseas sales of Hada Labo products have grown 1.2 fold
the domestic sales in Japan.
In Asian countries, we offer unique products in categories such as face masks, beauty serums, and face washes that are tailoredto local climates, skin types, customs, and needs while respecting the core values of the “Perfect Simple” brand, with a package
design following the Japanese Hada Labo products. In Taiwan, our products have been used by many customers and was ranked
No. 1* in the women’s self cosmetics market for two consecutive years.
In North America and Europe, the Hada Labo Tokyo brand was launched in 2013 in the United States with a new logo andpackaging to suit skincare habits that are completely different from those in Japan. In addition to communicating the world view of
Hada Labo, we have been steadily promoting the skincare method of skin conditioning based on lotion, and this has been
gradually spreading through Europe, including the U.K. and Poland. In 2022, Anti-Aging Super Hydrator was named Best Skincare
Treatment at The Beauty Awards in U.K.
The Hada Labo brand is currently used in more than 40 countries and will continue to be widely distributed to people around theworld.

*Euromonitor International Limited; Consumer Health Eye Care definition, retail value share, 2021

*ISURVEY electronic invoices; Open-shelf women’s facial care products (including cleansing), sales database, July 2020 to June 2022

TOPICS 2

Successful early entry into the Hong Kong hair care market
with 50 Megumi

In Japan, 50 Megumi is mainly focused on skincare products, but in Asia, it has emerged as a newforce in the hair care market and achieved significant growth. Originally, our Selsun brand had been the
top brand in the anti-dandruff shampoo market in Asia, but with 50 Megumi, we have expanded ourmarket. In Hong Kong, where we are gaining momentum, along with the strong performance of ourcolor treatment series, we have developed a new series, the Anti-grey series, which focuses on vibrant
black hair. Anti-grey Hair Essence was launched in March 2021, and Anti-grey Shampoo/Conditioner
was launched in August 2021. Women in Hong Kong are known to be extremely conscious about haircare, and the 50 Megumi brand, which was designed to quickly respond to changes in hair, scalp andthe concerns of customers as they age, has gained the No.1 share* in the hair care market and isstrongly supported by customers.

Sending Love&Care*Nielsen ScanTrack Data (Total KA) MAT Sep 2020-2021(2019 Oct – 2021 Sep)

TOPICS 3

Sending Love & Care is a social contribution
activity conducted in seven countries and regions:
China, Hong Kong, Malaysia, Taiwan, South Korea,
Thailand, and Singapore. In fiscal 2021, the focusof activities was on children in various countries.

Acquired Hydrox as a subsidiary, expanding sales network to medical institutions

In 2021, Hydrox Laboratories (U.S.) became a subsidiary of The Mentholatum Company. Founded in 1913, Hydrox
manufactures and sells rubbing alcohol, hydrogen peroxide, personal care products, and surgical instrument care products tomedical institutions. The company’s product development capabilities and sales network, which has provided reliable
products for more than 100 years, will make it possible to expand sales channels and possibilities in North America.

21

121,201

11,454

12,855Programs by 7 markets

Fund raised (USD)

Volunteer Hours

Children/Family

Establishment of children’s homes

Creating educational opportunities for children

In China, we established a children’s home with the China
Foundation for Poverty Alleviation. Women from the village
are employed to care for and educate the children.

In Malaysia, we raised funds in cooperation with retailers toprovide educational support to underprivileged students
and set up mini libraries in schools. In Taiwan, we launcheda limited edition Mentholatum
Ointment, and the proceeds fromthe sale of 288,000 packages
were donated to the Taipei
Orphan Welfare Foundation toprovide scholarships to 150
orphans.

Bringing health to children
In Thailand, we worked with two schools in poor
communities to improve the quality of drinking water toreduce the risk of kidney stones. We are also providing
meals and other daily necessities to children in othercountries.

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ROHTO Well-being Report 2022

38

Sustainability

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Sustainability
Our Commitment to HealthIn recent years, awareness of the need to realize asustainable society has spread rapidly, and ESG/
SDGs initiatives have become one of the criteria for
judging corporate value, with expectations rising day
by day for companies to contribute to sustainability.
We believe that sustainability is highly compatible
with our business as it is an activity to solve various
social issues related to health through our business,
which in turn leads to corporate growth, creating
both social value and corporate value. As wecontinue to engage in business activities aimed atachieving our purpose of realizing a society with wellbeing through our six business domains including ourcore OTC medicines and skincare businesses, we willfurther reflect the ESG/SDGs value criteria in ourmanagement.
To put this into practice, we established theSustainability Committee as an advisory committee
to the Board of Directors, and the ESH* Management
Promotion Office as a dedicated department forpractical operations, to identify materiality (key issues)in consideration of social issues in each ESG/SDGs
field, thereby establishing a system to strongly
promote sustainability initiatives.
On the environmental front, we have worked to
calculate greenhouse gas emissions throughout our
supply chain. Going forward, we will work to reduce
environmental impact throughout the supply chain byreviewing energy sources, raw materials andpackaging materials, effectively utilizing resources,
and reducing waste in order to reduce emissions, inaddition to working on calculations for Group
companies in Japan and overseas.
On the social front, we are promoting initiatives tomaximize human capital, which is our most importantpriority. We support to members by creating anenvironment in which diverse human resources canplay an active role and providing them with
opportunities for growth, as well as by improving
employee engagement through our goal of “mutual
growth of the company and members. Awareness ofhuman rights, employment, and other people-related
issues is increasing worldwide. As a company that
does business globally, we have established a Human
Rights Policy and are strengthening our efforts torespect human rights as the foundation of ourmanagement.
On the quality front, in March 2022, we revised our
Quality Policy to achieve higher quality and safety. On
the governance front, we are also moving forwardwith necessary reforms, such as strengthening thestructure of the Board of Directors and the Executive
Committee.
We will continue to fulfill our corporate social
responsibility and build a foundation for further
sustainable growth through dialogue with our
stakeholders and information disclosure.

Health Initiatives through Business Activities

Six Businesses under VISION2030 p.27 -Supporting Health through Everyday Diets
In order to achieve “life without medication”, it is first important to maintain good health as much as possible. We are also
committed to developing food products that enable each customer to take the nutrition they need at each stage of theirlife without difficulty and maintain good health in their daily lives. We propose products that support health in accordancewith respective lifestyles, such as “Dalura,” which provides high-quality iron, folic acid, and dietary fiber in the form
enjoyable as a daily meal; “Senobic” and “Propo
Protein,” which provide additional nutrients that canbe consumed without difficulty by children during
growth spurts and people who are exercising; andvarious supplements that contain important nutrients
packed in each tablet and can be easily consumed.

Delivering Health and Beauty Directly to Customers
Masaya Saito
Executive Vice President, CFO,in charge of ESG
Chair of the Sustainability
Committee*ESH: Environment (E), Society (S), Health (H)Rohto Quality Aging Salon was launched in 2019 as a new concept salon that proposes “Quality Aging,” a rich and highquality way of aging. As the only health solution salon thatdelivers products and services related to health and beauty, andeven learning about ways of thinking and healthy habits, we aim
to be “a salon where you can enjoy your health by visiting, andthe more you visit, the healthier you will become. The salon offers
three types of care: eye care (offering the “Roth Eye Retreat”
massage), skin care (counseling and sales of “Episteme” and“Obagi”), and inner care (sales of “QA Supplement,” asupplement available only at the salon), as well as a quality aging
experience through the salon’s original fragrance.

Sustainability Policy
Based on our Corporate Philosophy, Code of Values and Conduct (Rohto’s Seven Pledges), and various policies, we will work
together with all stakeholders, including consumers, business partners, employees, shareholders and investors, and local
communities, to fulfill our social responsibility toward the realization of a society with well-being and to enhance our corporate value.

Sustainability Action Guidelines
1. Contribute to the realization of a society with well-being and the resolution of environmental issues through our business activities.
2. Aim for co-prosperity with all stakeholders, as a company that is a “public institution of society.”
3. Conduct corporate activities under sound governance, and aim for fair, transparent and trustworthy management.

Sustainability Promotion System
The Sustainability Committee was established in September 2021 as an advisory committee to the Board of Directors to promotesustainability measures. The Committee is chaired by the Executive Vice President (CFO and in charge of ESG), with the Chief
Human Resources Officer (CHRO) as a member and an Outside Audit & Supervisory Board member as an observer. The Corporate
Planning Department and the Public Relations & Creating Shared Value Division serve as the secretariat for discussions on ESG,
SDGs and other sustainability-related issues, policies and measures. The Committee formulates countermeasure policies andaction plans for the identified issues, and monitors and evaluates progress. The deliberations of the Committee are reported andsuggested to the Board of Directors as appropriate, and particularly important matters are discussed and resolved by the Board of
Directors. In addition, we established the ESH Management Promotion Office, a dedicated department for promoting ESG-related
initiatives, within the Public Relations & Creating Shared Value Division in a reorganization in March 2022, thereby creating apractical promotion system.

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The Science of Fragrances Applied to Lifestyles
We offer proposals that support the well-being of each and every one of ourcustomers, enabling them to be active not only physically but also mentally, andto live fulfilling lives at various life stages. “BÉLAIR LAB,” our laboratory forfragrances and perceptions, is one such example. The laboratory scientificallyverifies the physiological phenomena and behavioral changes that fragrances
cause in the human body, and utilizes the diverse values of fragrances to help
create a richer society.
In 2019, research and study of fragrances to enhance performance wasconducted on players belonging to Iwaki FC of the Japan Football League toconfirm their effectiveness. At the 16th Japan Society of Kansei Engineering
Spring Conference in 2021, we presented the results of a scientific study on theeffects of green aroma components on performance, rest and sleep in two
professional e-sports players. We will continue to research the functionality offragrances and apply them to product development.

ROHTO Well-being Report 2022

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Our Commitment to Health
Recipients of Support

As a Leading Eye Care Company
Rohto Pharmaceutical has engaged in various researches together with universities and medical institutions formore than 100 years, focusing on the eyes with the desire to make people healthy. As a leading OTC eye carecompany, we are committed to reexamining eye health issues faced by people around the world, and will strive tocontribute to the “Joy of seeing” beyond national borders.

Eye Care Support in Developing Countries
Appropriate eye care for indigenous peoples in remote areas.
The “Joy of Seeing” has no borders
To help indigenous Brazilian communities where people could not easily receive
eye care treatments, we continue to support the “Amazonian Cataract Project,”which has been ongoing for more than 20 years. Several medical camps areheld each year to improve quality of life in remote areas. Ophthalmos Rohto iscontributing to healthcare beyond regional and ethnic barriers by participating
through volunteer staff and providing instruments and products for cataract
surgeries free of charge.
Giving the “Strength to See” to more people through provision offree intraocular lenses
PT. Rohto Laboratories Indonesia, established in 1996, is the first company in
the ASEAN region to manufacture and sell intraocular lenses (IOLs), for cataract
surgeries. The company overcame challenges such as the difficulty in getting
local ophthalmologists to understand the quality of its intraocular lenses, andnow sells its products in 15 countries, including Indonesia. We believe that IOLs,
which can reduce the number of people with loss of vision caused by cataracts,
are an important business that also leads to social contribution. We are actively
developing support for “vision,” including conducting charity cataract surgeries(offering free IOLs) in collaboration with ophthalmologists.

Creating the custom of taking care of eyes with our customers
Vietnam was the first country in which we developed an overseas market fromscratch, and we established a local office in 1996. While there is no culture orcustom of using eye drops as health care medicine, we continue to conduct
educational activities to promote the importance of eye care and free eye
examinations for schools and the general public. We also support the freecataract surgeries provided at eye hospitals that are committed to sustainablebusiness models.

OUI Inc.
Using the Smart Eye Camera, a portable ophthalmic examination device, thecompany conducted examinations together with local partners in South Africa
and the Republic of Malawi. The Company also took an active role in examining
patients at the Japan International Eye Hospital in Vietnam during free cataract
surgery volunteer work.
Asia Prevention of Blindness Association (NPO)The organization works to ensure that as many people as possible in Asian
countries that lack adequate eye care and suffer from poverty and blindness do
not lose their sight. In Vietnam, Myanmar, and Laos, it has provided free cataract
surgeries, etc. to approximately 1,000 patients to date.

Protecting the Eyes of the Next Generation
Japan’s myopia population is on the rise, the age at which myopia begins is getting earlier, and myopia and deteriorating
vision in children are now major social issues.
Myopia increases the risk of various eye diseases in the future. Against this backdrop, the GIGA school concept is
rapidly being realized, each child has a tablet PC, and ICT-based classes have begun. In addition, the environment
surrounding people’s eyes is changing for a wide range of generations, as the spread of COVID-19 infections has led to
an increase in remote work among the working generation.
We have long conducted eye research, including eye drops, based on our desire to “protect the eyes of all generations
and realize the happiness beyond the point of vision.” In order to protect and maintain vision for a lifetime, it is necessary
to quickly notice changes in eyesight (vision) and take appropriate measures. Therefore, we focused on children’s eyes,
when the early stage of myopia begins, and developed the “AImirun ®” vision measurement application jointly with
ophthalmologists, considering what we, as a company involved in the eye domain, can do to help raise awareness ofmyopia through the internet and pamphlets. We hope that parents and children will enjoy measuring their eyesight
together, and that by raising awareness on a regular basis, thereby creating an opportunity for eye examinations at
ophthalmologists. We have also developed “Rohto Eye Care Teaching Materials” for the educational field to help students
think about the importance of their eyes and learn necessary lifestyle habits in a fun way. Many schools and othereducational institutions are using the program as an opportunity for students to learn how to deal with digital devices.
Rohto Eye Care Teaching Materials

Learn eye care skills to deal
with tablets

Together with our Business Partners
As part of our activities to support the “Joy of Seeing” for people around the world, we have been donating to eye care
support activities in Asian and African countries in cooperation with our business partners since 2016. This is an initiativein which the Company and our retail business partners work together as “social partners” in social contribution activities
that transcend business boundaries.
Cataracts are the leading cause of blindness in the world, and tens of millions of people are thought to be blind today.
In Japan, the rate of blindness due to cataracts has become very low due to advances in surgical treatment. Globally,
however, many people are losing their sight due to cataracts, not only because of poverty, but also because they are notproperly screened and diagnosed due to lack of medical personnel and equipment, or unable to receive treatment due topoor surgical techniques.
In fiscal 2021, the sixth term, we matched a portion of the sales of eye drops made by 11 social partners during theperiod and donated 1,008,910 yen to an organization engaged in international eye care support activities.
As a member of the healthcare industry, we take a sense of mission and pride in our support activities, and willcontinue to implement them.

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ROHTO Well-being Report 2022

We are also engaged in activities overseas to protect
children’s eyes. In China, the Rohto Eyecare Program,launched in 2003, is now in its 19th year. The Program
has worked with 12 million children in more than 10,000
schools in 11 cities, teaching them through booklets andlessons about the importance of eye protection and how
to protect their eyes. Currently,
we also offer online educationand eye checks.

ROHTO Well-being Report 2022

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Our Commitment to Health

Health Awareness Enhancement Activities
The importance of self-care and self-medication has been growing in recent years through changes in theenvironment, such as the tightening of healthcare finances, changes in health awareness, the development of online
medical care. The spread of COVID-19 has further enhanced people’s health awareness, and their needs have alsochanged significantly, leading to a rapid spread of self-care and self-medication awareness. We are committed toproviding people with more reliable information and support to help them take action on self-care.

Publication of Fact-finding survey on pregnancy
Through our pregnancy test and ovulation predictor kit “Dotest,” we have closely supported our customers who wish to
become mothers and fathers. In the course of providing information in various places, we have come to realize that there
is a lack of information about pregnancy and childbirth, and that many people are anxious and worried about these issues.
Therefore, since 2018, we have conducted ongoing surveys to understand the current situation regarding pregnancy
and childbirth and to disseminate information, and publish anannual “Fact-finding survey on pregnancy.” Working hand inhand with the media, we will provide a wider range of reliable
information and support the realization of a society in whichpeople can make their own choices, whether they are
considering pregnancy, do not want to become pregnant, or
have decided to stop seeking pregnancy.

Enjoyable Health Promotion through Health Tourism
In September 2021, the “Health Promotion Monitor Tour,” jointly planned by
the three parties of Izumisano City Promotion Partnership Council (a generalincorporated association that promotes tourism in Izumisano City, Osaka
Prefecture), Osaka University of Health and Sport Sciences (the first sports
university in the Kansai region), and the Company, was selected by theJapan Tourism Agency as a demonstration project for promoting regional
cooperation through the refinement of local tourism resources.
Through our subsidiary Rinku Medical Management Co., Ltd., we haveestablished the “Well Beiner Station” near Kansai International Airport(Izumisano City) as a base for disseminating information on health promotion,
and are supporting the health promotion of each individual through healthmeasurements using specialized equipment and holding events.
Going forward, the three parties will work together to create and establisha brand image of “Izumisano, a city with abundant resources for healthpromotion and well-being,” and to educate people about health promotion
while having fun, including through tourism.

Promotion of Vegetable Intake in Collaboration with Kagome at the Company’s Restaurants
In July 2021, we developed a menu in collaboration with our restaurant “Shunkoku Shunsai,”
which uses ingredients delivered from our directly managed farms, and Kagome Co., Ltd.,and offered a measurement experience with the Vege-Check® vegetable intake estimator.
We will contribute to the health of the public through the promotion of vegetable intake bycommunicating the delicious taste of vegetables and the importance of consuming them.

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Human Resources Initiatives

Strengthen initiatives aimed at human capital management:“shared growth for both the Company and our company
members based on respect for the individual”
In order to continue to contribute to the “realization ofa society with well-being,” which is our purpose(reason for being), it is essential for us to create
sustainable corporate value. Needless to say, eachand every one of our members is a driver of theseprocesses and, without members’ growth, there canbe no growth of the Company. In recent years, therelationship between the individual and the company
has reached a major turning point. The former
organization-centered perspective has given way toan era in which it is increasingly important forindividuals to demonstrate their strengths, andsignificance is placed on respect for the individual andthe shared growth of the individual and the company.
Key factors in achieving this are: respect for diverse
individuals, the linkage between our Corporate
Philosophy and business strategy as its centripetal
force, and coordination with human resource
management that makes the most of the diverse
individuals who will carry out our strategies in line withchanges.
Our basic approach to our human capital(personnel system) is that the Company andemployees have a relationship of shared growth,rather than viewing our employees as possessions of
the Company. In other words, the Company is able togrow due to employees proactively participating inbusiness activities and creating value for society, andin turn, the Company’s growth provides various“opportunities for active engagement” for individual
employees, which creates a virtuous cycle for theCompany and employees to grow together.
The “autonomous” career that we seek forindividuals is for them to become human capital who
share the Company’s purpose, proactively participate
in business activities, and continue to learn to create
value for society as professional. To this end, we ask
our employees to update their career vision every year
by considering their future direction and what theyshould do now to achieve them, confronting their own
purposes, taking into account the needs of society
and our customers, as well as the expectations fromthose around them and their roles. We believe that
understanding oneself through the process of figuring
out what is expected of oneself now, what actions
one should take, and what factors one lacks in orderto take action, is the first step toward autonomous

career development. On the other hand, an one-sizefits-all approach is not ideal in addressing individual
growth. For this reason, the management takes thetime to read the career visions of all employees eachyear, and organizes and assigns personnel based onthese visions. In addition, in order for employees to beable to develop their careers on their own initiative
without the Company inhibiting their growth
opportunities, we respect the individual’s will as muchas possible and believe in the potential of theindividual and engage in initiatives to draw out theirstrengths, without tying them down with the will of theCompany. Such efforts include Internal Double Jobs
(concurrent positions) and External Challenge Work(secondary employment), as well as holding
semiannual “FEED-FORWARD” interviews (futureoriented interviews) for each work line to address the
careers of each individual.
Going forward, we will continue to develop an
organization that effectively utilizes each and every
one of our diverse individuals, regardless of simple
attributes such as age, gender, or nationality, rathert h a n t h e o n e - s i z e - f i t s - a l l h u m a n re s o u rc e sdevelopment model. We will also develop an
organizational culture that each individual seeks tolearn continuously. In this way, we will strive for shared
growth for our individual employees and ourCompany.

Chiharu
Takakura
Director, CHROROHTO Well-being Report 2022

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Human Resources Initiatives

Diversity Management
To enable our Company to contribute to realizing a society with well-being and achieve sustainable growth, we must
continually create new value and make the Company vital to the world around us. Needless to say, each and every
one of our employees is a driver of these processes and, without employees’ growth, there can be no organizational
growth. With the rapid diversification and globalization of our businesses, it is essential for us to have a diverse
group of human resources who share values and work hard together to grow in order for the Company to continue
to create value in the future. In order to promote well-being management, we promote Diversity Management so that
employees can proactively participate in business activities and realize their career visions autonomously as
professional workers. Moreover, we aim to create a society with well-being by creating an organization that makes
the most of diverse individuals, so that both individual employees and the Company can grow together.
Supporting individual careerdevelopment

Support for learningand self-improvement“Believe in and expand your own potential”“Willingness and attitude to always keep
learning”·External Challenge Work (secondary employment)·Internal Double Jobs (concurrent positions)·Asuniwa project (Supporting entrepreneurs
within the Company)·Well-being Support RoomPervasion of Corporate Philosophy/
Promotion of health and productivity
management/Fostering oforganizational culture“Diverse human resources thriving”“Equal relationships”

Individual growth

Self-driven
initiatives

Autonomous
relationship &shared growth(new comers, high school interns)

Providingopportunities
to take onchallenges

Company growth

Rohto-style HR management

Creating corporate value
as one-team Rohto“Create and seize your own opportunities”·Promoting diversity·Health indicators (Well-being KPIs)·Use of “-san” suffix and workplacenicknames·Human Resources Committee focusing
on diverse individuals·Personnel system for developing
autonomous human resources·Career Vision Sheet·In-house recruitment

We encourage our company members to go beyond the bounds of the Company and gain experience in positively
impacting society with a variety of companies and organizations, and to transcend the barriers between divisions within
the Company to actively engage with their work from multiple perspectives. We believe that these independentworkstyles and self-driven initiatives will allow our employees to gain new knowledge and contacts and facilitate further
growth. Respecting the individual and seeing shared growth for the Company with each new challenge pursued, we aim
to maximize our efforts to create social value.
(1) Strategic human resources management that utilizes the individual (since February 2020)
We have introduced human resources management tools that visualize employees’ individual backgrounds and areas ofexpertise to allow each employee to clearly set out a career vision. Using this as a basis, management are working
together to promote deliberation of human resource that focuses on growth of the individual. In the hope that employees
will relevant our corporate philosophy as their own, we are promoting Company-wide dialogue in order to bring together
employees’ individual visions and our section and Company visions.
(2) Rohto Academy: supporting autonomous career creation for the future (since January 2021)
We have set up an online study platform in order to promote self-motivated study aimed at career autonomy. Using
videos, seminars, and other content, we are providing learning opportunities
External Challenge Work andand working to foster human resources who will continue to develop of theirInternal Double Jobs
own volition.
External Challenge Work

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ROHTO Well-being Report 2022

62
70

52

54

49

2018

Ratio of female managers
(%)

31.1

18.6

19.2

2016

2017

21.1

2018

22.8

2019

27.0

2020

2021 (FY)

We believe that health is the foundation for realizing personal growth and individual well-being, and we established the
Health and Productivity Management Declaration in 2018 with the aim of “working at Rohto to bring health benefits.”
Rohto’s definition of “health” is not simply “not being ill.” “True health” is founded on both mental and physicalhealth and allows us to bring passion (a sense of meaning in our jobs and our lives) to our daily work. We believe that
employees possessing true health will support a healthy society as “healthy human resources.” We further cultivate“healthy human resources” by focusing on creating opportunities for employees to make their own positive efforts tostay healthy.

Rohto’s Health and Productivity Management Declaration
Our aim is to become a company fully staffed by “healthy human resources”
who will always be able to healthily thrive in their daily work.
We hereby declare that we will strive to further promote health and productivity management
so that our healthy employees will lead to a healthy society, and on to a healthy next generation.

The Company has been
selected as one of the “CertifiedHealth & Productivity
Management Outstanding
Organizations Recognition
Program (White 500)” since thefirst edition in 2017. *Excluding 2020

As a company that actively promotes sports activities to improve
the health of its employees, we were certified as a “Sports Yell
Company 2022” by the Japan Sports Agency. As this is the fifth
consecutive year of certification, we received “Bronze” level
certification. The Company has also earned a “+” (plus) certification
awarded to companies with a weekly sports implementation rate ofat least 65%.

81

63

2017

45

Internal Double Jobs
(persons)

81

Promoting Further Diversity

Promoting Health and Productivity Management

Support for Diverse Workstyles and Career Development(3) External Challenge Work program (secondary employment)(since February 2016)
This program recognizes diverse workstyles in the form of secondary
employment. We believe that workstyles that go beyond the bounds of theCompany allow employees to gain experiences that are difficult to access whenworking exclusively for the Company. Knowledge and experience gained in thisway lead to significant growth and yield benefits for employees’ principal jobs.
Our aim is to further expand our employees’ potential through their work in
multiple jobs.

(5) Asuniwa project: Supporting entrepreneurs within the Company (since April 2020)
This project provides support for employees starting businesses building on their own passions and ideas to tackle social
issues. To be eligible, businesses must be in domains connected to Well-being, in line with our management vision,“Connect for Well-being.” We believe that the experience of starting a business will cultivate autonomous, self-directed
people. As of March 2022, four companies have been established.

(1) Promoting women’s active participation
At Rohto, where approximately 60% of our employees are women, we believethat it is important to create environments where our female employees feel secure and can work with ease, in order to help each and every one to further
thrive in her work. We also maintain high rates for uptake of parental leave andreturn to work and are enhancing our support programs, including providing
free gynecological examinations and nursing care leave.
(2) Active involvement of employees of foreign nationality
We aim to increase the ratio of foreign nationals employed in sections relating
to development and technology to 20% and are working on recruitment andtraining. Currently, foreign nationals with diverse backgrounds from around 10
different countries are playing an active role at Rohto.

·Rohto Academy (self-selective training)·Learning from the next generation

Respect for diverse
individuals/
Autonomy and growth(4) Internal Double Jobs program (concurrent positions) (since February 2016)
This program allows employees to volunteer to work in another division of the Company within their working hours. By
facilitating work beyond divisional limits, our aim is to allow employees to improve their skills and increase their job
satisfaction, at the same time as encouraging them to explore their own new possibilities.

2019

2020

Our “Company-wide Walking Event ‘Toko Challenge’ - Efforts to Promote
Employees’ Health” was highly evaluated in the third “Kansai Sports Supporting
Company Award,” and received the Health and Productivity Management Award.

2021 (FY)ROHTO Well-being Report 2022

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Human Resources Initiatives
Support for voluntary activities

Establishing Health Indicators as a Foundation for Well-being

ARK Project

We believe that health is the foundation for realization of well-being, and we have established health indicators that lookahead to the health of the next generation, in addition to those that prepare for current and future health risks. By setting
specific targets, we promote health and productivity management with the aim of enabling each employee to review their
daily life and make their own efforts toward the realization of well-being.
KPI
Resultindicators(physical
health)Behavioral
indicators(lifestyle)

Present (prevention ofpresenteeism andabsenteeism)

Future (prevention oflifestyle-related diseases,
physical diseases, andmental health issues)

Next generation(prevention of healtheffects on the next
generation)

Proportion of persons with metabolic
syndrome or pre-metabolic syndrome
Proportion of persons (female)with anemia*1
Proportion with a lower health age
than chronological age*2

FY2021
results

FY2023targets

14.1%

0%

14.8%

0%

52.2%

80%

Proportion of smokers

1.9%

0%

Proportion using alcohol in moderation*3

74.2%

100%

Proportion sleeping for at least 6.5 hours

37.8%

50%

39.0%

50%

52.3%*450%

Proportion of persons taking 30 min.
of exercise at least twice a week
Proportion of persons who walk
8,000 steps and practice 20 minutesof brisk walking per day*1 Anemia is defined as a hemoglobin levels of less than 12.0 g/dl.
*2 Lower health age than chronological age is defined as demonstrating younger results than actual age in terms of physical fitness measurement results (physical fitness age, walking age,brain activity age).
*3 A single serving is defined as less than approximately 360mL for men and less than approximately 180mL for women.
*4 Average during the walking event Autumn 2021 (3 weeks)

Expanding Health and Productivity Management to the Entire GroupIn order to extend the health and productivity management that we are promoting to Group companies and employees’
families, we established the “Rohto Group Health Insurance Society” and launched its activities in April 2022. With theincrease in the average age of employees, we believe that regular checkups are very important as an initiative for early
detection and prevention of diseases, and we offer a full range of health checkups. The Company has been conducting“specified health examinations” for those aged 30 and above, which are generally for those aged 40 and above, and now
the entire Group is able to conduct such examinations. In addition, while each office and Group company had different
criteria for health checkups, and understanding health status was an issue, it is now possible to visualize health checkup
data for the entire Group and introduce appropriate measures. We will strive further to maintain the health of our employees.

Fostering a Work-friendly Culture

We have implemented the “39 (Thank You) ARUCO” campaign to encourage employees toexpress their appreciation for each other and to instill a culture of praise and recognition.
“ARUCO” is a system that allows employees to earn internal currency (ARUCO coins) thatthey receive based on their implementation of healthy lifestyle habits. The coins can also beearned by expressing gratitude to each other. This naturally leads to the expansion of thecircle of appreciation beyond departments.

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In-house newsletters

Through “Seiryu,” our paper-based in-house newsletter, and “SHI-ROHTO+,” our Webbased in-house newsletter, we communicate the latest topics at the time of issue, including
new internal initiatives, messages from management, and personal anecdotes of ouremployees. “Seiryu” conveys the philosophy that runs through Rohto and the ideas we wish
to pass on, while “SHI-ROHTO+” conveys the latest news in a timely manner, help
employees communicate with each other, and create new value.
Company-wide events

Through the “Grand Sports Day,” in which all employees participate, and the “Finish Line
Challenge” walking event, we are building connections among employees and promoting
their health. Volunteer project members plan and manage the “Grand Sports Day,” andparticipants, who are divided into teams in advance, prepare for the day of the event bypracticing the competitions in their respective teams. Through this series of events, thisinitiative is designed to promote employee interaction and foster teamwork while having fun.

Occupational Safety and Health
Basic Approach to Occupational Safety and HealthOccupational safety and health is the foundation for the continuation of our business activities to protect the lives andhealth of workers involved in our business, and we consider occupational safety and health in the workplace to be of thehighest priority in order to continue providing our customers with “safety and security,” the foundation of the products
and services we offer.

Based on the recognition that protecting the occupational safety and health of our employees is the most important issue
for business continuity, we are working to create a safe and comfortable work environment based on our Basic Policies
on Occupational Safety and HealthUse of “-san” suffix and workplace nicknames

39 (Thank You) ARUCO campaign

Promotion of internal connections

Basic Policies on Occupational Safety and HealthCreating a work-friendly environment
In 1994, we began addressing all employees by the “-san” honorific suffix so that they could
address each other by name rather than position titles, out of respect for the fact that all
employees are important partners and equal in their work. Subsequently, the Company
launched an initiative to further stimulate communication by calling each other by workplacenicknames. Workplace nicknames are used on employee ID cards, in-house newsletters,
and in many other situations.

Since 2003, we have been implementing the ARK “Thinking about the Future of Rohto”
project, in which employees proactively volunteer and participate in. With the participation ofa wide range of employees, from young to experienced, we face and realize important themes
such as the environment, social contribution, human resources, and health and productivity
management. External Challenge Work (secondary employment) and Internal Double Jobs
(concurrent positions) were also conceived and implemented in this project.

Workplace nicknames used on employee
ID cards
Fitness-tracking devices for earning
ARUCO coins

1. In accordance with the Labor Standards Act and the Industrial Safety and Health Act, we aim to prevent andeliminate work-related accidents through thorough safety and health management in compliance with internalsafety regulations and rules.
2. We will strive to enhance employees’ awareness of occupational safety and health through education andawareness activities, and actively engage in 5S activities (sort, set, shine, standardize, and sustain the Discipline)in the workplace and the prevention and elimination of traffic accidents.
3. Through the promotion of health and productivity management, we will promote both physical and mental health andsupport employee health management, so that employees can feel rewarded and fulfilled in life and can fully
demonstrate their abilities. In addition, we will improve the working environment to promote a comfortable workplace.
4. We will conduct regular drills and take measures before and during outbreaks of fires, natural disasters, epidemics
of infectious diseases, etc., in order to enhance our ability to take response measures in an event of a disaster.

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Rohto’s

Rohto’s Vision

Sustainable Global Environment

Sustainability

Corporate Governance

Data Section

Initiatives to Achieve a Low-carbon Society

Responding to Climate Change
It is our duty to protect the environment for future generations. We therefore set out an Environmental Policy in 2005
and work to prevent environmental pollution and continuously improve environments, both locally and globally,
through our corporate activities. We are taking on the challenge of extending the healthy lifespan of the earth bydeveloping environmentally friendly products and working with suppliers, retailers, and distributors in Japan andoverseas. In addition, taking seriously the impact of natural disasters caused by global warming, in June 2021, we
announced our endorsement of the recommendations made by the TCFD (Task Force on Climate-related Financial*Non-consolidated basis only
Disclosure) and set a CO2 emission reduction target*.

GovernanceValue Creation Process(1) Oversight of risks and opportunities by the Board of Directors
In September 2021, the Company established a Sustainability Committee to discuss risks and opportunities
related to climate change, determine policies for addressing them, and roll out these policies to the Group.
The Board of Directors receives reports on the content of these deliberations and discussions, and deliberates
on the Group’s response to climate change, including disclosure to and dialogue with stakeholders and capital
expenditure plans from a long-term perspective, and supervises the implementation of these plans.
(2) Management’s role in evaluating and managing climate change risks and opportunities
The Sustainability Committee consists of two Directors and one Outside Audit & Supervisory Board member
who serves as an advisor, and is chaired by the Executive Vice President. The Executive Vice President
concurrently holds the position of Chief Financial Officer (CFO) of the Group, and is responsible for evaluating
and managing environmental issues as financial issues.

We consider addressing climate change to be a top priority issue, and recognize that reducing greenhouse gas(GHG) emissions in order to prevent global warming is a world-wide concern. Accordingly, we have been
implementing a variety of initiatives in areas including energy conservation in our offices, plants, and other sites, andthe reduction of environmental impact in sectors such as business travel and transportation. We have reviewed ourCO2 emission targets and are promoting activities with the goal of reducing CO2 emissions from Scope 1 and 2 by
46% (compared to fiscal 2013 levels) by 2030. In fiscal 2021, we achieved a 10% reduction while expanding thescale of our business to 138%. In addition, we began calculating emissions for Scope 3 in fiscal 2021. We willcontinue to promote Company-wide efforts to reduce emissions.

Set targets• Reduce total Scope 1 and 2 CO2 emissions by 46% in fiscal 2030 compared to fiscal 2013
• Interim target of a 30% reduction in fiscal 2025 compared to fiscal 2013

Achieving targets• Purchase of CO2-free electricity

Purchase electricity generated from renewable energy sources that do not generate CO2, such as hydroelectric,
wind, and solar power, and reduce CO2 emissions from purchased electricity consumption by 27.6% by fiscal
2030• Installation of solar power generation equipment in the new building at the Ueno Plant

Strategy

We evaluated the impact of risks and opportunities related to climate change on our business, focusing
primarily on the financial impact. We have local development and production bases in major countries withbusiness footprint and have built a system that is resilient to the fragmentation of the value chain caused byclimate change. Here we assumed a 2°C scenario and analyzed the comprehensive impact on our major
global operation bases: Japan, China, Vietnam, the Americas, and others. At this point, we are only
assessing the 2°C scenario. However, going forward, we will assess and evaluate various scenarios anddeliberate on countermeasures to enhance our resilience to an uncertain future.
*For details, please refer to our Annual Securities Report.

https://www.rohto.co.jp/-/media/cojp/files/pdf/ir/financial-report/y220628.pdf

Install solar power generation equipment in fiscal 2023 and 2024 in line with operating conditions, and reduce
CO2 emissions from power generation and purchased electricity consumption by 1 to 2% annually, combinedwith existing emissions• Preservation and operational improvement, waste heat utilization, energy conversion
Reduce energy consumption by at least 1% per year by fiscal 2030

FY2021 CO2 emissions by Scope(thousand t-CO2)

Risk
management

Metrics
and targets

49(1) Identification and evaluation process for climate-related risks
In accordance with the framework proposed by the TCFD and the prediction of changes in the external
environment, the Sustainability Committee identifies the degree of impact which climate change risks poses toour business, based on our resources and the services we provide.
(2) Process for managing climate-related risks
The Sustainability Committee manages the identified risks and holds discussions on their responses. The
Committee convenes the heads of related sections as necessary to confirm more specific measures andpromote them in a flexible manner.
(3) A system to integrate the above process into the Company’s comprehensive risk management
The Sustainability Committee also evaluates and manages risks other than environmental issues that may
affect the sustainability of our business in a comprehensive manner. Depending on the case, theSustainability Committee will also discuss with the Compliance Committee, which is chaired by the President
and Chief Operating Officer, to formulate a BCP.

We have set our CO 2 emission reduction target for
Scope 1 and 2 for 2030 at a 46% reduction compared tofiscal 2013 levels, and are taking actions to achieve thisgoal. CO2 emissions in fiscal 2021 are 14,249 tons for
Scope 1 and 2 combined (reduction of 10% compared tofiscal 2013 levels). Going forward, we will calculate
Scope 1 and 2 emissions by summing the emissions ofdomestic and overseas subsidiaries with major production
bases, and we will work toward refining the calculation ofemissions and setting a target for Scope 3.

ROHTO Well-being Report 2022

FY2021Compared to
FY2013 levels

14,249t-10%

Scope 1emissions

7,342t+21%

Scope 2emissions

6,906t-29%

Total Scope 1 and 2
emissions

Breakdown*Calculations for fiscal 2021 are based on the GHG Protocol
standards.
For details, see p. 50

1
3

0
5

4 7

7

27

Total CO2 emissions
in FY2021:
183

At the Ueno Techno Center in Mie Prefecture, we have additionallyestablished a smart plant that takes people and environment into
consideration.The new plant building will realize a Digital Twin*1
environment that fully utilizes IIoT and use renewable energy to aims torealize a “human- and environmentally-friendly plant” i.e., a “smart plant”.
*1: This is a system that reproduces the environment of the real space within the virtual space by sending
information from the real space to the virtual space in near real time utilizing IoT and othertechnologies. By utilizing the Digital Twin environment of real and virtual space, it is possible to not
only monitor the real space, but also run simulations, thereby improving efficiency and optimization in
the real world, and even predicting future equipment failures for early maintenance.

Environmentally friendly plant
The new plant will utilize renewable energy such as geothermal heat*2 and solar
power, and feature energy-efficient equipment, and aim to lower energy consumption
by 20% compared to existing plants. We will also gradually switch to eco-friendly
materials.

125
Scope1

Expansion of smart plant that takes people andthe environment into consideration

Scope 2 (market standard)

Scope3Purchased goods
and services
Capital goods

Waste generated inoperations
Business travel

Fuel- and energy-related
activities (not includedin Scope 1 or Scope 2)
Upstream transportationand distribution

Employee commuting
Upstream leased
assetsDownstream transportationand distribution
End-of-life treatmentof sold products*2: T h e u n d e r g r o u n dtemperature is lower
than the outside airtemperature in summer,
and higher than theoutside air temperature
in winter. Utilization ofgeothermal heat refers
to a system that uses
this temperature
difference to enableefficient air conditioning
operations, heating
and cooling.

Outside air:
35°C
Coolants, etc.: 7°C
Geothermalheat pumpOutside air:
5°C
Room temperature:28°C
Coolants, etc.:45°C
Air conditioner
20°C

Room temperature:
28°C
Air conditioner
30°C

Blowout:
15°C
Heat
extraction:
20 - 30°C

Heat
extraction:
25 - 35°C

Blowout:
5°C
Heat
extraction:
0 - 5°C

Undergroundtemperature:
Heat
15°C
dissipation
Ground heat exchanger(U tube)When coolingHeat
extraction:
5 - 10°C
Undergroundtemperature:Heat
dissipation 15°C

When heating

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Sustainable Global Environment

Initiatives for a Recycling-based Society
We believe that “the health of our planet is essential for the health of people,” and in order to make effective use oflimited natural capital, we not only use environmentally friendly ingredients and materials, but also actively work to
reduce the amount of waste after use by our customers. While paying close attention to customer needs and easeof use, we are switching to environmentally friendly materials and displaying the “R-eco” symbol on applicableproducts.

Use of materials with low environmental impact
Use of biomass materials

Adoption of mechanical recycled PET

We are gradually switching thematerial for bottles and pouches to“biomass plastic” made from plantderived biomass.

We are gradually switching thematerial for bottles, pouches, andblisters to “mechanical recycled
PET” made from recycled used PET
bottles.

We established our own eco label, “R-eco” symbol, in 2019. We are introducing thissymbol to our Hada Labo series and other environmentally friendly products.

Reduction of paper resources
Environmentally Friendly Product Development
Product containers and packaging not only maintain the stability and safety of the formulation, but also serve the role ofconveying the usage and features of the product. However, since they are no longer needed after use and are discarded,
we are committed to the development of environmentally friendly products.

Reduction of plastic usage
Proposal for refill pouches

Reduction of eye-catching stickers

In 2005, the Hada Labo series launched refills, and since then,we have actively adopted refills in new brands. This has led toa reduction of more than 1,100 tons of plastic per year.

Starting in 2021, we will gradually eliminate plastic eyecatching stickers attached to our products to further promote
the reduction of the amount of plastic used.

Elimination of enclosed separate
package inserts

Utilization of environmentally friendly
paper materials

By printing the necessary package inserts for
OTC medicines on the inside of the paper box
for the first time at our Company*, we have
reduced the amount of paper used for the
package inserts that used to be enclosed, as
well as the amount of paper discarded.

We promote the utilization of environmentally friendly
paper for product boxes, package inserts, pamphlets,
and sales promotion materials, as well as in ourbusiness activities.
*Excluding limited edition
products

Hada Labo, which has been our No. 1 skincare product for 15 consecutive years*, is a popular skincare brandaround the world, therefore we believe that we have a significant role to play in reducing our environmental
impact. We continue to evolve to use more environmentally friendly bottles as well as refill pouches.
2005

Reduction of
approximately
1,100 tons
per year!

Launch ofrefillable product

Lightweight containers

Container label reduction

We reduced the thickness and weight of the bottle while
maintaining its rigidity. This reduces not only the amount ofplastic used, but also the energy required for production andtransportation, leading to a reduction in environmental impact.

By minimizing the use of labels on containers, the amount ofplastic labels has been reduced by 50% compared toconventional products.

30%
reduction!*50%
reduction!**Compared to Rohto C Cube
Soft One conventional product*Compared to conventional products in the Rohto C-Cube series

Reduction of plastic by changing
container molding
methodElimination of plastic
carrying bags for eye
drops

We are working to reduce theamount of plastic used bychanging the molding method ofcontainers.

We have eliminated the inclusionof plastic carrying bags forapplicable eye drop products,
with due consideration of quality
and other factors.

Unification ofbottle standards
globally

2019

2021

Adoption of

eco-bottle
limited edition
productsbiomass
containers

Launch of

Abolishedeye-catchingstickers*Percentage of sales of the Hada Labo series to the total sales of the five basic skincare categories. Number of units sold based on Intage SRI, SRI+ 5 Basic Skincare Categories(lotions, emulsions, beauty serums, creams, face masks) Self + Medicinal Market: by major range from June 2007 to May 2017 (SRI), from June 2017 to May 2022 (SRI+)

Initiatives with Retailers
Ethical consumption
LOHACO by ASKUL “Go Ethical”: Sale of Older Products Left Behind by Product Updates
Since July 2020, we have been participating in Go Ethical, an initiative that aims to reduce
loss from product wastage in the popular “OUTLET” section of the “LOHACO by ASKUL”,
an online shopping platform for general consumers run by ASKUL Corporation. We are
reducing loss from product wastage for products that would previously have been
destined for disposal* but that present no quality defects, by reselling them in the outlet
section.
*Unopened, discontinued products returned from distributors and wholesalers.

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Sustainable Global Environment

Coexistence with Society

Initiatives for Water Resources
With economic development and population growth, the world’s demand for water is increasing rapidly. Limited water resources also pose a major challenge to society in terms of its quality. Our business activities require a certain
amount of water use. Based on the recognition that our business is closely related to water resources, we consider
the effective use of water resources to be our social responsibility. In accordance with our Basic Environmental Policy, we will engage in environmental preservation activities such as effective use of water resources, reduction of water usage, and prevention of water pollution from our entire business.
Basic unit per net sales (m3/million yen)

Water usage (1,000 m3/year)

Efficient use of water

Our main plant, the Ueno Plant, uses groundwater. The wastewater
generated in the groundwater refining process is reprocessed and recycled
in an effort to efficiently use our precious water resources.

292

275
3.3

290
3.1

3.0

271

266
2.5

263

248
2.5

2.5

2.6

Reduction of water usage

Water use is essential to our products themselves, and water use will in2015 2016 2017 2018 2019 2020 2021 (FY)crease as production volume increases. Water is also required for washingand other production processes to maintain quality. We are working to effectively reduce the amount of water used sothat we can minimize environmental impact as much as possible while maintaining product quality. In addition to water
usage at our plants, we are also working to control water consumption in flushing of toilets and hand washing in offices.
Improvement of wastewater quality

Through regular daily monitoring and adjustments, we strive to reduce the impacts caused by wastewater discharge.

Initiatives for Biodiversity Conservation

Respect for Human Rights
Basic Approach to Respect for Human Rights
With the aim to realize a society with well-being, we are expanding our business activities not only in Japan but also
throughout the world, and respect for human rights is the foundation of all our business activities. We recognize that wemay directly or indirectly affect human rights in the process of conducting our business. We support and respect
international norms related to human rights, such as the United Nations’ International Bill of Human Rights*, the ILO
Declaration on Fundamental Principles and Rights at Work of the International Labour Organization (ILO), andconventions related to workers’ rights, including wages and working hours. We uphold the Ten Principles of the United
Nations Global Compact as its signatory company and support the Guiding Principles on Business and Human Rights,
and will implement initiatives based on these principles. We will also comply with the laws and regulations applicable ineach country or region where we conduct our business activities. In the event of a conflict between internationallyrecognized human rights and the laws and regulations of a country or region, we will pursue measures that respect
international human rights principles.
*The International Bill of Human Rights is the collective name for the following three documents: the Universal Declaration of Human Rights and its treaties, namely the International Covenant
on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights.

Human Rights Issues of Particular Importance

Recognizing that all of our business activities benefit from and impact the natural environment, we are committed topreserving biodiversity for a sustainable society by working in harmony with the natural environment.

Prohibition of discrimination and harassment

1. We will strive to understand how our business activities relate to and impact biodiversity, and work to avoid or minimize
the impact.
2. We will strive to conduct our business activities in a manner that takes into consideration the ecosystems of theregions in which we operate.
3. We will strive to preserve the environment by promoting the development of products and technologies that takebiodiversity into consideration.
4. We will strive to raise employee awareness of biodiversity and support and promote environmental preservation
activities through cooperation and partnerships with a variety of related stakeholders.
5. We will comply with national and international agreements and laws regarding biodiversity.

Guarantee of workers’ rights

Dealing with microplastic beads
Microplastic beads are an ingredient used in products for cleansing andrinsing, but recently concerns have been raised both in Japan andoverseas regarding their environmental impact, such as marine pollution.
We stopped adding microplastic beads to our new cleansing products in2010, and in 2016 we completed the switch to microplastic bead-freeformulas for our existing cleansing products.

Consideration for marine pollution
and coral protection
In February 2022, we launched a new sunscreenthat does not contain ingredients with concerns of
causing marine pollution and coral die-off. These
ingredients are essential for sunscreen effectiveness,
and are found in many sunscreen products.
However, we have achieved high sunscreen
effectiveness, comfort of use, and environmental
friendliness, by making full use of our formulation
technology.

Prohibition of all forms of discrimination and harassment, respect of diversity, and provision of equal opportunity
Prohibition of child labor and forced labor (including slavery and human trafficking)Respect for freedom of association and the right to collective bargaining
Prevention of low-wage work (work below minimum and living wage) and long working hours
Ensuring of occupational safety and health (including worker health and mental health)Respect for privacy

Respect for privacy, such as the protection of personal information, including those of customers and employees
We will endeavor to establish and work toward the ongoing implementation of a human rights due diligence system toidentify, prevent or mitigate negative impact to human rights, and to take appropriate and effective remedial measures.

Labor and Management Cooperating to Address Human Rights Issues
The Company guarantees basic labor rights to its employees and allows them to organize a labor union and retain theright to collective bargaining.
In labor-management consultations, labor and management work closely together to share information on issues suchas working conditions as well as the working environment, and labor and management engage in a unified effort toresolve issues. At our overseas locations, we strive to build good labor-management relations with labor unions inaccordance with the labor laws and regulations of each country.

Utilization of sustainable raw materials
Palm oil is a vegetable oil obtained from the oil palm tree, some of whichis also used as a cosmetic ingredient (fatty acids and glycerin). In recent
years, however, various problems have arisen, including the destruction oftropical rainforests in relation to the development of oil palm plantations.
We select and procure “sustainable raw materials” as much as possible.
We will continue to work with suppliers to utilize sustainable raw materials.

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Example of human rights initiatives:“establishment of a new registration system of a same-sex partner”
In order to recognize the diversity of our members and promote a corporate culture that encourages a sense ofwell-being through mutual respect, we introduced a same-sex partner registration system for sexual minority(LGBTQ) members in January 2022 for our direct-hire members. This will allow the use of special leave formarriage, childbirth, and other reasons, as well as enable application for childcare and nursing care leave, etc.,
and will be treated in the same manner as marriages between persons of the opposite sex.

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Rohto’s Vision

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Sustainability

Value Creation Process

Corporate Governance

Data Section

Coexistence with Society

Quality Improvement: Providing Reliable and Safe Products
In order to provide reliable and safe products, we established our “Quality Policy” in January 2004, and all members
work together in accordance with this policy in their daily operations. Our Quality Policy is reviewed to keep pacewith the times and the expansion of our products with the aim of constantly meeting the growing needs of ourcustomers and patients. In March 2022, we reviewed and revised our Quality Policy to ensure higher quality andsafer use of our products by customers, as we make a full-scale entry into the prescription medicines business.
We will pursue even higher levels of quality and safety for all our products and activities.
Quality Policy
Rohto pledges to provide all people withhappiness and security by:
1. ensuring compliance and endeavor tocommunicate the truth;
2. controlling risks based on scientificevidence and pursuing high quality andsafety; and3. valuing the communication and continuing
to improve by promoting transparency of
information.

Our Quality Policy is a guideline for providing safe products. First,
we distributed “Our Principles Card” to have all of our members
understand the Quality Policy, and posted a Quality Policy
Board in each facility. It isessential to accumulate
many years of effort inorder to maintain quality.
We will continue todisseminate our Quality
Policy to all members sothat they understand the
Quality Policy and act
accordingly.

Company-wide Commitment to Quality Assurance Involving the Top Management
We have an organization in which the three officers of the manufacturing authorization (General Marketing Manager,
Quality Assurance Manager, and Safety Management Supervisor) work together to guarantee the quality of all our
products. We promote a system in which not only the manufacturing and quality sections, but also the entire Company
including the management team, is committed to quality and safety. The same Quality Policy applies to our Group
companies, and we have a system in place to realize a high level of quality assurance.
President & Director(s) in charge
Overseas Group
companies

Corporate QA andMarketing authorization
Safety Vigilance section General Marketing Manager(Three officers)
Quality AssuranceManagerMarketingsection

Safety Management
Supervisor

R&D section

Purchasing
sectionOsaka Plant

Ueno Plant

R&D QARaw materials andpackaging materials

Quality section

Quality section

Production
section (Plant)

Production
section (Plant)

Regulatory
sectionCall center

Order-receiving Regenerative
sectionmedicines plant
Distribution
centerQuality section

Sales section

OverseasGroupmanufacturing
sites

DomesticGroup
companies

Production
section (Plant)

Further Quality Enhancement Through Cooperation Among Group Companies

Safety Initiatives
We read through all information from our customers and patients, as well
as from academic societies and overseas, to regularly check andevaluate whether our products are safe and that they are being usedcorrectly. In cases when it is considered necessary to alert the public
about safety or usage, we will revise the “Precautions” and otherinformation as well as communicate the information to the public. These
activities are conducted in compliance with the Act on Securing Quality,
Efficacy and Safety of Products Including Pharmaceuticals and Medical
Devices, GVP Ministerial Ordinance*, and other regulations. The ultimate
goal of our safety measures is the well-being of our customers andpatients by ensuring that our products are used correctly and safely.

Health hazard
occurrence
Safety informationcollection andaccumulation

Appropriate use

Provision of
information/
Disclosure of
information

For safe use of
our products

Determinationof response
measuresDataevaluation andanalysis

Considerationof safety
measures*Good Vigilance Practice (GVP) Ministerial Ordinance: A law to ensure that companies properly implement safety measures.

Compliance with Legal Guidelines
There has been a series of misconduct in the pharmaceutical industry. Based on the legal compliance guidelines issued
by the Ministry of Health, Labor and Welfare, we have prepared the “Rohto Legal Compliance System” and made itavailable to all members. In addition, we provide all members with compliance training using e-learning (Rohto Academy)on the contents of “Rohto Legal Compliance System” to deepen their understanding of the importance of legal
compliance and our system, thereby establishing our compliance system.

Building a Sustainable Supply Chain
Sustainable and Responsible Sourcing
In order to achieve stable raw material procurement, we have been working to diversify our procurement bases byutilizing our global network. Local procurement and local production also contribute to risk diversification. We have also
revised our CSR Guidelines for Suppliers, which were established to contribute to the realization of a sustainable society
together with our partner suppliers, and newly established the CSR Procurement Guidelines on this occasion. We willfurther promote socially responsible manufacturing throughout our supply chain.

Achieving Sustainable Delivery with Business Partners
Amid the concern for a logistics crisis caused by driver shortages and soaring fuel prices, we implemented an initiativewith one of our business partners, PALTAC CORPORATION, to not only reduce the environmental burden but also topromote the well-being of drivers by improving delivery efficiency.
Since our products are mostly pharmaceuticals and cosmetics, they tend to be relatively small in size and eachdelivery tends to be a small quantity of a variety of products. Therefore, we are promoting initiatives such as bulk
deliveries and ordering by pallet tiers. This has reduced the loading and unloading work that used to burden the drivers,and changing the delivery time enabled the reduction of waiting times at the delivery and pickup locations. The modal
shift has led to a reduction in CO2 emissions as well as improved long-distance transportation for drivers.
Going forward, we will continue to cooperate with our business partners to improve efficiency and environmental
friendliness.
Reduced loading and unloading time55

ROHTO Well-being Report 2022

Changed the delivery time to theafternoon, which resulted in zero
waiting time
Modal shift
Implemented a modal shift byusing trailers to reduce overlandtransport distance to 1/4

PALTACCORPORATION

Transport distance: 800km

Land
transport
Marinetransport

Rohto
distribution
centerTransport
distance: 100km

Shipping
distance: 460km

The Port ofShinmoji

Reduced driver waiting time

Rohto
distribution
centerThe South Port ofOsaka

The Rohto Group Marketing Authorization Holder Joint Meeting is regularly held as a forum for information sharing anddiscussion among the three Group companies (Rohto Pharmaceutical Co., Ltd., Rohto Nitten Co., Ltd., and Amato
Pharmaceutical Products, Ltd.) with the aim of enhancing the quality and safety of domestic manufacturing plants of the
Rohto Group and building a platform for such enhancement. In addition, we check manufacturing operations, records,
sanitation standards, and other plant-related details to ensure that there are no discrepancies with approval documents
and that there are no irregularities, and we work to enhance efficiency through human resource development andcollaboration by introducing outstanding human resources to enhance each company’s management capabilities, andsolving issues at each company. Our Group companies are composed of various predecessors, each of which has aquality system that has been cultivated over many years. Going forward, we intend to expand the scope to include
Mayado Pharmaceutical Co., Ltd. and Qualitech Pharma Co., Ltd. to further improve quality throughout the entire Group.

Changed from non-palletized loading to palletized loading, thereby
reducing loading time to 1/8 andunloading to 1/4 or lessTransport
distance: 100km

PALTACCORPORATION

CO2 emissions from transporting 1 ton of cargo 1 km can be reduced by approximately 80% when using a ferry.

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56

Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Coexistence with Society

Supporting thenext generation

Initiatives for Society
As part of our corporate philosophy, we state that, “We shall address issues concerning society at large in collaboration
with all of the people connected to the Company, and we will share the benefits gained through these endeavors.”
Accordingly, we are actively engaged in activities that contribute to society and consider them to be an important theme ofour business activities. Among other things, we are committed to “health and support of the next generation,” “vitalizationof local communities,” and “development of medicine” over the long term in order to realize a society with well-being.

Established ROHTO Foundation for Children’s Future
In recent years, it has become difficult for children to fully express theirindividuality in their environment, and it is said that there are few “places where
they belong” in which they can focus on and continue to discover and explore
their individuality. In order to realize a future society that respects the individualityof each child who will lead the next generation, we established the ROHTOFoundation for Children’s Future to fostering children's perspectives to explore
and supporting their diverse learning.
We will support the realization of children’s ideas and contribute to the“realization of well-being” where everyone can continue to challenge themselves.

Comprehensive Cooperation Agreement with Kounosu City, Saitama Prefecture
We will promote sustainable community development by working together toimprove health and welfare, address the declining birthrate and the aging
population, support pregnancy and child rearing, preserve the environment, andpromote industries by utilizing local resources.
By providing information and holding seminars on pregnancy and child-rearing
support, we will contribute to the health of the Kounosu (meaning “stork’s nest” inJapanese) City community and the children who will lead the next generation, as
well as to regional development for realizing sustainable community development.

The Michinoku Future Fund Providing Support for Orphans from the Great East Japan Earthquake
The Michinoku Future Fund is a post-high school scholarship fund fororphans from the Great East Japan Earthquake. The Fund is run by four
companies: Kagome Co., Ltd., Calbee, Inc., Ebara Foods Industry, Inc.,and Rohto. The circle of support has expanded beyond industry
boundaries, with donations totaling over 4 billion yen and the number ofscholarship recipients reaching 1,045 as of April 2022. We will continue
to provide long-term support for approximately 25 years until the children
who were in the womb at the time of the disaster graduate fromuniversity, so that they can continue to pursue their dreams and hopes
without having to give up due to financial reasons.

Regional Development Through Joint Research with Mie University
The Mie Hometown Creation Project was launched in 2014 as a cooperative project between industry, academia, andgovernment, with the aim of promoting regional vitalization. “VISON” (Taki Town, Mie Prefecture), which was createdthrough the project, opened as a commercial resort facility that combines diversity and expertise in order to vitalize the
new local economy. In addition, a hot spring facility “HONZO Spa” opened in June 2021. We have developed a recipe for
HONZO Spa based on the results of our joint research with Mie
University. The facility also has an herb garden where medicinal
herbs are cultivated, as well as a research laboratory, and offersa variety of herbal baths according to the season. We areworking toward the realization of a society in which eachindividual can lead a healthy life both mentally and physicallythrough community revitalization.
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ROHTO Well-being Report 2022

Corporate Governance

Data Section

Solving social andlocal issues

Development of
medicine

Ishigaki City × Kuradashi × Rohto Tri-party Initiatives to Address Local Issues
Ishigaki City, Okinawa Prefecture; Kuradashi Co., Ltd., which runs the “Kuradashi
Challenge,” a social contribution internship program that sends interns to local
farmers suffering from a labor shortage; and the Company with its subsidiary
Yaeyama Farm, the only organic pineapple grower in Japan, have signed a“Cooperation Agreement to Reduce Food Loss and Promote Local Products for
the Promotion of the SDGs in Ishigaki City.”
Through this cooperation, the three parties will make the most of theirrespective resources to solve local issues, and will continue to work on creating
connected minds and building local industries, and to build a system that will
enable the food of Ishigaki Island to reach more people.

Regional DMO × Osaka University of Health and Sport Sciences × Rohto:
Attracting Tourists to Izumisano City Under the Theme of “Health Promotion”
The “Health Promotion Monitor Tour” jointly planned by the three parties of Izumisano City Promotion PartnershipCouncil, Osaka University of Health and Sport Sciences of the incorporated educational institution Namisho Gakuen, andthe Company, was selected by the Japan Tourism Agency as a “demonstration project for promoting regional
cooperation through the refinement of local tourism resources.” By holding the “Monitor Tour,” we aim to brandIzumisano, which has been a transit city, as “a city with abundant resources for good health” by utilizing the knowledge
and expertise of industry, academia, and government. Through this, we will create “value” and “purpose” for tourists tovisit Izumisano, and thereby attract tourists to the area.

Established Kumejima Island Algae Research Laboratory “AMU LABORATORY”
We established an algae research base AMU LABORATORY jointly with OP Bio Factory Co., Ltd. With a focus on
microalgae as an ethical and sustainable material with diverse possibilities, not only for use in healthcare, but also forsolving environmental issues and building local ecosystems, the Laboratory is cultivating algae using a photobioreactor(outdoor microalgae cultivation facility) in Kumejima Town, Okinawa Prefecture.

Contributing to the Development of Medicine to Realize a Society with Well-being
We are contributing to the enhancement and development of medicine by widely funding science and technology, basic
research, and clinical research to realize a healthy and prosperous society with well-being. We will continue to support
young researchers, particularly in ophthalmology, dermatology, and obstetrics and gynecology.
Science andtechnology

1977 -

Yamada Science
Foundation

Established by Kiro Yamada, our first president, to subsidize and promote basic research in the natural sciences andwith the aim to contribute to the enhancement of science and technology and public welfare.

Eyes1995 -ROHTO AWARD

The award is given to young researchers who have achieved both basic and clinical research achievements, with theaim of advancing ophthalmology research. The award has produced human resources that will be future leaders in
ophthalmology.

Skin2007 -

Japanese Association of
Established by the Japanese Association of Geriatric Dermatology Research and the Company to widely encourage
Geriatric Dermatology
and aid basic and clinical research and study on age-related dermatology.
Research: Rohto Prize

Skin2008 -

Rohto DermatologicalResearch Fund:Endowment by Rohto
Pharmaceutical

Women2009 -

Rohto Women’s Health Developed from the Society for Women’s Health Science Research, this award is presented to an institute that has
Research Award
made a significant contribution to the development and enhancement of obstetrics and gynecology research.

The Fund provides research grants for innovative and budding research, with the aim of supporting and promoting
basic research that is expected to make a significant contribution to the development of dermatological medicine.

Karugamo Fund: Corporate matching Gift
The Karugamo Fund is financed through a combination of members’ voluntary
contributions to a reserve fund and matched donations from the Company. Each
year, members decide on the recipients of the Fund, and use them to support
welfare and educational activities that are needed in society. The Fund was started
in 2004, with 970 members (approximately 60%) participating in fiscal 2021.

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58

Corporate GovernanceRohto’s

Rohto’s Vision

Message from the Chairman of the Board
In fiscal 2021, we were able to achieve record results in the sales andprofit levels amidst a business environment in which the resumption of
economic activity was gradual due to the prolonged COVID-19
pandemic. This was the result of the concerted efforts of all Group
members to improve the well-being of our customers, and we are
grateful to all of our members for their efforts. We are also grateful to allof our stakeholders for their tremendous support. Going forward, theSustainability

Value Creation Process

Corporate Governance

Data Section

Corporate Governance
Basic Approach to Corporate GovernanceAt the same time as fulfilling our social responsibility, we are striving to earn the trust and meet the expectations of ourshareholders, consumers, business partners, employees, and all other stakeholders, and achieve co-existence and coprosperity. We recognize that enhancing and strengthening corporate governance to achieve this is an importantmanagement challenge. We will develop an organizational structure for management and implement the necessary
measures for ensuring transparency and fairness in management and responding to changes in the management
environment in a prompt and accurate manner.

business environment will continue to be always subject to waves ofdramatic change. As a Board of Directors, we are continuously working
to improve and strengthen our corporate governance system to ensure
prompt decision-making and business execution and appropriate risk
management to achieve sustainable growth.
While have been actively promoting diversity on the Board of
Directors, and in fiscal 2021, we mainly promoted initiatives related to“activation of board discussion”, “sustainability”, and “governance”.
As measures to stimulate discussion, based on the notion that it isimportant to secure sufficient time for deliberation at meetings of theBoard of Directors, we (1) delegated authority to officers in charge ofmatters for resolution and (2) thoroughly shared materials with Directors

Kunio Yamada
Chairman of the Board
Chairman and Chief Executive Officer

before meetings and provided prior explanations of agenda items. With
regard to (1), some of the Board of Directors’ decision-making authority
has been transferred to approval by multiple officers in charge. With
respect to (2), we focused on ensuring that materials were sent to

Corporate Governance System
Rohto has adopted the framework of a company with an audit and supervisory board. Through the appointment of four
Outside Directors and two Outside Audit & Supervisory Board members, we aim to incorporate outside perspectives atthe same time as strengthening management monitoring functions. Cooperation between the Audit & Supervisory Boardand the Internal Audit Office has enhanced the effectiveness and efficiency of audits. We have also increased thetransparency of management through the establishment of the optional Nomination Committee and Compensation
Committee. In addition to the regular meetings of the Board of Directors, extraordinary meetings of the Board of Directors
are held flexibly or resolutions are adopted in writing in order to speed up the decision-making process in order to
respond to changes in the business environment promptly and accurately.
The Company’s Audit & Supervisory Board rigorously checks the status of business execution by the Directors incooperation with the Internal Audit Office and the Accounting Auditor, and we believe that we have put in place a systemthat provides adequate monitoring of management. Outside Audit & Supervisory Board members are also familiar with
the Company’s business operations, as they regularly exchange opinions with Representative Directors and Other
Directors as well as Full-time Audit & Supervisory Board members. Moreover, Outside Audit & Supervisory Board
members ask candid questions and express their opinions from an independent and objective standpoint at meetings ofthe Board of Directors, and we believe that the objectivity and neutrality of the management monitoring function is
ensured.

Directors to allow them, especially Outside Directors, sufficient time toread the agenda materials before meetings and explained the materials to them prior to meetings. This has significantly

Corporate Governance System (as of July 2022)

shortened the time it takes to explain agenda items during meetings of the Board of Directors, thereby allowing more

General Meeting of Shareholders

time for strategic discussions, and it has enabled us to expand, enrich, and deepen our discussions of topics such as
business strategy, human capital strategy, and sustainability-related agenda items, more than ever before. For example,

Election/Dismissal

having the Board of Directors deliberate issues such as our personnel system, which in the past was often discussed byour efforts to incorporate diverse perspectives and ideas by reforming the Board of Directors and promoting diversity.
With regard to sustainability, the Sustainability Committee was established as an advisory committee to the Board ofElection/Dismissal

Audit

a few management members and the human resources section, resulted in lively discussions based on the diverse
experience and knowledge of each Director and Audit & Supervisory Board member. We believe this is also the result ofElection/Dismissal

Management/Supervision

Audit report

Accounting
Auditor

Audit & Supervisory Board

Board of Directors(Audit of business execution)(Decision-making/oversight of business execution)

4 Audit & Supervisory Board members
Cooperation (incl. 2 Outside Audit & Supervisory Board members)

Directors. The Committee deliberated and promoted initiatives to address sustainability issues that are of great interest to

Audit

stakeholders, and has established a system to proactively promote ESG-related actions that are increasingly demanded
Cooperation

by society, such as calculating supply chain emissions and establishing materiality issues. We have established a system

11 Directors

Nomination Committee
Compensation Committee(incl. 4 Outside Directors)

Raise issues/
Report

Audit

Advise/Report

Oversight/
Selection/
Dismissal

Execution

to proactively promote ESG-related actions that are increasingly required by society.
In terms of governance, six new chief officers, including the CFO, have been established. We have clarified theInternal Audit Office

executive officers in each area, increased the agility of decision-making related to management strategies, andstrengthened the mobility of management. As part of our effort to further strengthen our governance structure, we
increased the number of Outside Directors to four in our new management structure for fiscal 2022, welcoming Mr.
Tatsuo Uemura and Ms. Eriko Hayashi. Social demands related to sustainability and compliance are increasing in both

Accounting
audit andinternal
control audit

together with our stakeholders.

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ROHTO Well-being Report 2022

ReportSustainability Committee

Executive Meeting

Information Security
Management Committee(Management Strategy Conference)

management will contribute to enhancing our corporate value.
response to environmental changes and considering how we can contribute to the realization of a well-being society

Chairman and Chief Executive Officer
President and Chief Operating Officer

Compliance Committee

Japan and overseas, and we believe that their experience and insight as experts in corporate governance and risk
Amidst the current uncertain environment, we will strive for sustainable growth while appropriately controlling risks inReportReportInternal audit

Instruction/President meeting

Business execution departments
and Group companies

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Corporate GovernanceRohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Roles and Activities of Each Meeting Body and Committee

Diversity of the Board of Directors and the Audit & Supervisory Board

Board of Directors

Skills Matrix

The Company has eleven Directors, four of whom are Outside Directors, and the Chairman and Chief Executive Officer
serves as chair of the Board of Directors. The Board of Directors is composed of all Directors and operates with theattendance of Audit & Supervisory Board members (four, including two Outside Audit & Supervisory Board members)
who have an obligation to attend.
Based on its fiduciary responsibility and accountability to shareholders, the Board of Directors aims to achievesustainable growth and enhance the corporate value of the Group over the medium to long term for the common interestof the Group, its shareholders, and all other stakeholders.
The Company’s Board of Directors makes decisions on important matters related to management in accordance withlaws, regulations, and the Articles of Incorporation in addition to supervising the execution of business by each Director.
Directors perform their duties under the direction and supervision of Representative Directors and in accordance withthe responsibilities and division of duties determined by the Board of Directors. Directors report the state of execution of
their duties to the Board of Directors quarterly.
Outside Directors provide suitable advice and opinions as appropriate at meetings of the Board of Directors from an
independent standpoint, based on their broad knowledge and extensive experience, in order to contribute to theenhancement of corporate value over the medium to long term.
In holding meetings of the Board of Directors, the secretariat of the Board of Directors provides the Outside Directors
with preliminary materials and briefings to make the deliberations at the meetings more substantive. In addition, Outside
Audit & Supervisory Board members hold an Audit & Supervisory Board prior to the Board of Directors’ meeting todiscuss and review the agenda of the Board of Directors’ meeting in advance. This makes the Board of Directors’
meeting a forum for constructive discussion, and thus they are striving for the sustainable growth of the Group and theenhancement of its corporate value over the medium to long term.

Corporate management/governance

Name

Finance/accounting

Social relationship

Well-being
management

Technology
management

Business development/alliance

Global business

Legal affairs/riskmanagement

Kunio Yamada
Masashi Sugimoto
Masaya Saito
Shinichi Kunisaki
Chiharu Takakura
Atsushi Hiyama
Hidetoshi Segi
Akie Iriyama
Haruka Mera
Tatsuo Uemura
Eriko Hayashi

Ratio of Independent
Outside Directors

1/3 4/11 Officers

Ratio of Female
Officers

1/4 3/11 Officers

Audit & Supervisory Board
The Company has four Audit & Supervisory Board members, two of whom are Outside Audit & Supervisory Board
members and two of whom are Full-time Audit & Supervisory Board members from within the Company. The Audit &Supervisory Board is chaired by a Full-time Audit & Supervisory Board member elected from among the Audit &Supervisory Board members.
Based on its fiduciary responsibility and accountability to shareholders, the Audit & Supervisory Board ensures thesoundness of management with the aim of achieving sustainable growth and enhancement of the corporate value of
the Group over the medium to long term, and acts in the common interests of the Group, its shareholders, and allother stakeholders.
Each Audit & Supervisory Board member attends meetings of the Board of Directors and other important meetingsin accordance with the audit policy and audit plan established by the Audit & Supervisory Board, audits the executionof duties by Directors, and offers advice and opinions as appropriate.
Audit & Supervisory Board members collaborate regularly and as appropriate with the Internal Audit Office, which isin charge of internal audits, and the Accounting Auditor to enhance the effectiveness of their audits.

Nomination Committee
The Nomination Committee is composed of three Directors, the majority of whom are Outside Directors. The committee
members are Akie Iriyama, an Outside Director, Haruka Mera, an Outside Director, and Kunio Yamada, Chairman andChief Executive Officer, and the committee is chaired by Akie Iriyama, an Outside Director. The Nomination Committee
drafts the proposals for the selection and dismissal of Directors, the proposals for the selection and dismissal of
Executive Directors, and the proposals concerning the positions of Directors, etc., and submits them to the Board of
Directors, which it is authorized to do by the Board of Directors.

Compensation Committee

Policy on Selection and Nomination of Directors
The Company aims to achieve sustainable growth and medium- to long-term enhancement of corporate value for thecommon interest of all stakeholders. Therefore, the Company believes it is important that the Board of Directors of theCompany consists of Directors who possess the diverse knowledge, experience, capabilities, insight, and values
necessary to ensure appropriate and flexible decision-making with respect to the Company’s business activities andsupervision of business execution. The Company also believes it is important to ensure a highly transparent and objective
corporate governance structure. Regarding internal Directors, the Company emphasizes that they should haveexperience of diverse business divisions and management experience at the Company’s subsidiaries, etc. and anunderstanding of their issues in order to formulate the Group’s management strategy. Regarding Independent Outside
Directors, the Company emphasizes that they should have diverse experience and expertise that are unavailable solely
from internal Directors and, at meetings of the Board of Directors, be able to offer the Company advice and suggestions
contributing to enhancement of corporate value.

Reasons for Appointment of Outside Directors
Name

Reasons for appointment

Akie Iriyama

Akie Iriyama worked at various institutions and organizations, specializing in management strategy and global management, before
being appointed as a professor at Waseda Business School. His advice and suggestions based on his wide-ranging knowledge ofcutting-edge management have greatly contributed to vitalization of the Board of Directors of the Company. The Company expects
that he will continue to effectively offer his insight at meetings of the Board of Directors.

HarukaMera

The Compensation Committee is composed of three Directors, the majority of whom are Outside Directors in order tosecure more objectivity. The committee members are Akie Iriyama, an Outside Director, Haruka Mera, an Outside
Director, and Kunio Yamada, Chairman and Chief Executive Officer, and the committee is chaired by Kunio Yamada,
Chairman and Chief Executive Officer. Upon delegation by the Board of Directors, the Compensation Committee
formulates the amount of individual compensation. The committee also prepares drafts for Directors’ compensation
policies, procedures, and structures. It also drafts proposals regarding Directors’ compensation that require approval at
the General Meeting of Shareholders and submits the drafts to the Board of Directors. The total amount of compensation
for Directors determined, as well as the allocation of basic compensation (fixed compensation) and performance-based
compensation (variable compensation) is reported to the Board of Directors.
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ROHTO Well-being Report 2022

TatsuoUemuraEriko
Hayashi

Haruka Mera launched the READYFOR crowdfunding service in 2011 and has continued to support people taking up challenges. Sheis creating new trends as one of Japan’s leading next-generation managers and is also a member of the Council of New Form of
Capitalism Realization. The Company expects that she will continue to make recommendations that will contribute to improving ourfinancial and social value.
Tatsuo Uemura is a legal research specialist who is a university professor and has experience as a member of the Companies Act
Subcommittee of the Legislative Council of the Ministry of Justice and a member of the Self-Regulation Committee of the Tokyo
Stock Exchange. The Company believes that his extensive knowledge and expertise of capital markets and the Companies Act will
greatly contribute to strengthening corporate governance to support medium- and long-term growth. The Company expects that hewill effectively offer his knowledge and expertise at meetings of the Board of Directors.
Eriko Hayashi is a licensed attorney who has held various positions and public offices due to her high level of knowledge andexperience in global corporate legal affairs. She also manages her own law firm and has experience as an Outside Director and Audit& Supervisory Board member of other companies. The Company expects that she will effectively use her insight andaccomplishments to promote our global risk management efforts in the future.

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Corporate GovernanceRohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Evaluation of the Effectiveness of the Board of Directors
Messages from Newly Appointed Outside Directors

The literal translation of the word “well-being” is “to be well” or “to exist well,” but
Mr. Kinya Abe, a great authority on Western history whom I respect, said that
culture means to live well and refers to a person’s way of life. An educated person
is not an expositional and intellectual person, but a person who seeks and follows
a better way of life in society. It is possible for a craftsman who devotes his life to asingle job to be a very educated person in his way of life, and for a university
professor or a great politician to be completely illiterate, and such historical facts
are too numerous to mention. The cultivation of a person like a hermit who isseparated from society is self-satisfying, and it is only in relation to other people(society) that his or her way of life becomes meaningful.
By the way, the original meaning of the word “company” refers to “society.”
Société, which means “company” in French, is an association (contract) in which
Tatsuo Uemura
people who come together to do a joint business. This is not a concept in
Outside Director
corporate law, but in civil law. Even a large public stock company is merely asociété anonyme (anonymous partnership). This is because, due to trading via thestock market, there is always a human involved, even if it is anonymous. The
English word “company” means friends, companions, or a community. In(za),(kumi),(kou),(yui),(yoriai), or(ikki).
Japanese, once upon a time we would use
Europeans conjure up images of companies with this linguistic nuance. To seek a way of life as “well-being” in acompany or fund that does not have the scent of human beings, or that has little or no scent of human beings,
would be tantamount to seeking fish by climbing a tree. As an Outside Director, I intend to support Rohto toensure it can continue to be a company that strives to achieve its business objectives on behalf of humanity, andto be a company whose employees as well-being keep a close eye on what its management is like as well-being.

I was appointed as an Outside Director of Rohto at the General Meeting of
Shareholders in June 2022. During the COVID-19 pandemic, the global
environment changed dramatically. People are facing various health and social
issues which made me reflect on the background to Rohto’s steady performance.
What I felt during my reflections was, first of all, that Rohto’s corporate philosophy
has a high public interest in providing well-being to people all over the world by
delivering health. Secondly, Rohto is a company that can return to its corporate
philosophy and think intrinsically when faced with changes in the business andsocial environment. Thirdly, Rohto continues to boldly take on new challenges inthe spirit of “Never Say Never,” incorporating the free and open-mindedsuggestions and opinions of its employees, who are full of ideas. Lastly, in taking
on such new challenges, Rohto is making business decisions based on thorough
Eriko Hayashi
research and discussion, and is implementing appropriate risk controls.
Outside Director
As an attorney, I have been involved in the legal affairs of global companies formore than 20 years and I have also worked in the United States and China. I willcontinue to support Rohto through proposals, advice, and discussions at Board of
Directors meetings based on my knowledge so that Rohto can continue topromote its business globally based on its management philosophy of delivering well-being to people around theworld.
Furthermore, as an attorney, I emphasize a dialogue-based approach to problem solving, and as a career
consultant, my other line of business, I support people that consult with me in the process of taking new action
through dialogue. I will do my best in my duties to deepen understanding through dialogue with Rohto officers
and employees, and to support them when they take new action.

The Company conducted a self-evaluation (survey) of all the Directors in order to analyze and evaluate the effectivenessof the Board of Directors in the fiscal year ended March 31, 2022. We rated each question on a five-point scale fromthree perspectives: effectiveness of the Board of Directors, evaluation of oneself as a Director, and evaluation ofmanagement. The evaluation was generally positive. However, the following issues were raised: succession planning,
including CEO and future Director candidates, for the Board of Directors; timing of agenda proposals and distribution ofmaterials; opportunities for study and training tailored to individual Directors; and ensuring sufficient time for deliberationof each agenda item at the Board of Directors’ meetings. We will make improvements in these areas through operations.
The results of the evaluation of effectiveness were reported to the Board of Directors’ meeting held on June 27, 2022,
and Directors also discussed ways to improve the operation of the Board of Directors during the current fiscal year.

Compensation of Officers
Matters related to determining the amount and the method of calculation of compensation, etc. for officers
The Company has established a compensation system (level of compensation and determination process) based on the following policies.
(1) To motivate contribution to the enhancement of the corporate value of the Company from a long-term perspective in order to achieve
the philosophy specified in the Articles of Incorporation(2) To enable the philosophy to be put into practice and to be appropriate to the roles and responsibilities of each person(3) To ensure objectivity, transparency, and rationality that can be explained to all stakeholders
Based on these policies, which have been resolved by the Board of Directors, the compensation for each Director is deliberated anddetermined by the Compensation Committee, with a majority of Outside Directors as its members, within the scope of the total amount ofcompensation, etc., previously approved by the General Meeting of Shareholders. The Compensation Committee is composed of three
Directors, the majority of whom are Outside Directors. The committee members are Akie Iriyama, an Outside Director, Haruka Mera, an
Outside Director, and Kunio Yamada, Chairman and Chief Executive Officer, and the committee is chaired by Kunio Yamada, Chairman andChief Executive Officer. Compensation for Audit & Supervisory Board members is decided in consultation with Audit & Supervisory Board
members within the scope of the total amount of compensation, etc., previously approved by the General Meeting of Shareholders.
The 78th Ordinary General Meeting of Shareholders held on June 24, 2014 approved an annual amount of up to 700 million yen as the
maximum amount of compensation for Directors (not including employee salaries for Directors who serve concurrently as employees). The
Company’s Articles of Incorporation at the time of this Ordinary General Meeting of Shareholders stated, “The Company shall have up to
15 Directors.” In addition, the 84th Ordinary General Meeting of Shareholders held on June 26, 2020 also approved an annual amount of
up to 70 million yen as the maximum amount of compensation for Audit & Supervisory Board members. The Company’s Articles ofIncorporation at the time of this Ordinary General Meeting of Shareholders stated, “The Company shall have up to four Audit & Supervisory
Board members.”(a) Structure of compensation for Directors
The compensation for the Company’s Directors consists of basic compensation (fixed compensation) based on the scale of their
responsibilities and roles, and performance-based compensation (variable compensation) based on the evaluation of individual Directors
and business performance in the most recent fiscal year. However, Outside Directors are paid basic compensation only as they are
responsible for independent supervision.
(i) Basic compensation
The Company pays fixed compensation to individual officers according to the scale of their responsibilities and their roles. The level ofcompensation at other companies is taken into consideration in determining fixed compensation.
(ii) Performance-based compensation (compensation based on individual evaluations and performance-linked compensation)
Performance-based compensation consists of compensation based on individual evaluations that varies according to the degree ofcontribution to Company-wide medium- to long-term issues (ESH (environment, society, and health)) and results in the business areas
under the control of each officer during the relevant period, and performance-linked compensation that varies according to the degreeof achievement of consolidated operating income targets for the previous fiscal year.
The ratio of basic compensation and performance-based compensation varies according to position and role. However, as a roughguideline, approximately 75% of the total compensation for internal Directors is allocated to basic compensation and approximately 25% isallocated to performance-based compensation. This ratio is based on a viewpoint that emphasizes management with a long-term
perspective, and in terms of performance-based compensation, the Company also places more importance on degree of achievement ininitiatives to address medium- to long-term issues. Compensation is paid in cash only. The annual amount of compensation during theterm of each officer determined by the Compensation Committee is divided into 12 and paid once a month in the same amount. The target
for the indicator related to performance-linked compensation for the fiscal year ended March 31, 2022 was 28,000 million yen, and theactual result was 29,349 million yen.
(b) Structure of compensation for Audit & Supervisory Board members
Auditors are paid basic compensation only as they are responsible for independent supervision. Compensation is determined throughconsultation among the Audit & Supervisory Board members taking into consideration the nature of their duties.

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Corporate GovernanceTotal Amount of Compensation, etc. for Each Category of Officer, Total Amount of Each Type of Compensation, etc.,
and Number of Eligible Officers
Total amount of each type of compensation, etc.
(million yen)

Total amount of compensation,etc.
(million yen)Fixed compensation

Performance-linked
compensation

Directors(excludes Outside Directors)

393

353

40

7

Audit & Supervisory Board members(excludes Outside Audit &Supervisory Board members)

39

39

—

2

Outside officers

40

Category of officer

40—

Number of eligible officers

6

Total Amount, etc. of Consolidated Compensation, etc. for Each Officer
Name (category of officer)

Kunio Yamada (Director)

Rohto’s

Rohto’s Vision

Total amount of consolidated
compensation, etc.
(million yen)Company category

196

Filing company

Amount of each type of consolidated compensation, etc.
(million yen)Fixed compensation

Performance-linked
compensation

178

18

*Information is only provided for those whose total amount of consolidated compensation, etc. is 100 million yen or more.

Business Execution Structure
Initiatives to Improve the Efficiency of the Execution of Duties by Directors
In order to respond quickly and accurately to changes in the business environment, the Company has strengthened
cooperation between sections that execute day-to-day operations, while at the same time establishing an Strategic
Design Headquarters to tackle medium- and long-term issues related to our health and beauty business, marketing,research and development, production, alliance promotion, promotion of well-being management, and DX promotion.
Every other week the Company holds Executive Meetings (management strategy conference), which are attended byinternal Directors and executive officers, to promote appropriate decision-making and encourage more in-depth
discussions at meetings of the Board of Directors. President meetings are also held every other week to share
information on important decisions made by each section and company-wide issues with all section heads in a timely
manner. Directors have the function of executing and supervising all of these operations.
In addition to regular meetings of the Board of Directors, the Board of Directors has established and operates asystem of written resolutions and approval decisions so that time can be allocated for discussions on more importantmatters. The Board of Directors supervises the proper operation of this system by receiving reports on requests forapproval. A Nomination Committee and Compensation Committee have been established as voluntary committees
independent from the Board of Directors to enhance transparency and objectivity in the process of selecting candidates
for Director and determining compensation for individual Directors. Both committees are composed of a majority of
Outside Directors, and the Nomination Committee is chaired by an Outside Director.
In order to respond quickly and accurately to changes in the business environment and to achieve sustainable growthand enhance corporate value, we have established a new management structure (with 6 CXOs) that enables speedy
decision-making and the execution of measures based on roles and responsibilities. We will increase the agility ofdecision-making related to management strategies, and strengthen the mobility of management by clarifying theexecutive officers in each area.

Value Creation Process

Sustainability

Corporate Governance

Data Section

New Management Structure
Name

Position

Responsibilities

Masaya Saito

Chief Financial Officer

Shinichi Kunisaki

Chief Technical Officer

Chiharu Takakura

Chief Human Resource Officer

Atsushi Hiyama

Chief Communication Officer

Public relations, customer relations

Hidetoshi Segi

Chief Strategy Officer

Corporate planning, strategies

Yuichi Itabashi

Chief Information Officer

IT systems, DX

Overseas businesses,
ESG management supervision
R&D, manufacturing
Well-being management,
organizational development

Strengthen Corporate GovernanceInternal Controls
Recognizing that the objective is to ensure the effectiveness and efficiency of operations, the reliability of financial
reporting, compliance with laws and regulations and to safeguard assets, Rohto has established an Internal Audit Office(staffed by 3 employees) as an organization independent from sections that execute business to conduct internal audits
from a fair and objective standpoint, based on a mutually cooperative relationship with Audit & Supervisory Board
members.

Development of a Subsidiary Company System
We have put together a Rohto Group Global Management Book to ensure the appropriateness of operations within thecorporate group, which serves as a guideline for the independent management of our subsidiary companies. Importantmatters require the approval of the Board of Directors or the Representative Director of the Company that is the parent
company, in accordance with our Rohto Group Management Regulations, and the section of the Company in charge ofsubsidiary management supervises the situation once approval has been given.

Risk Management
Our purpose is to deliver “health” to people around the world through our products and services. Value creation requires
a safe and stable supply of products and services as our business activities. At the same time, social demands oncompanies in relation to consideration for the environment and sustainability are increasing. By managing risks andconducting appropriate risk control, we aim to maintain sound management, ensure stable profitability and growth,protect the safety, health and profits of our stakeholders, and fulfill our social responsibilities as a corporation.

Risk Management System
Risk management is based on the principle that each section takes appropriate preventive measures in anticipation ofrisks that may occur in the course of or in connection to the execution of operations, and that if a risk should occur, therisk is handled appropriately with the support of the related sections. We have established a Crisis Management
Committee to deal with unforeseen circumstances, and have put in place a system to promptly deal with dangers andprevent losses or escalation while listening to the opinions of legal counsel and other outside advisors. With regard topreventive measures against the manifestation of potential risks, the Compliance Committee, an advisory committee tothe Board of Directors, oversees the formulation and promotion of company-wide plans for compliance risks, including
risks relating to ethics and legal compliance.

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Directors and Audit & Supervisory Board Members (As of June27, 2022)

1. Kunio Yamada

2. Masashi Sugimoto

Chairman and Chief Executive Officer

President and Chief Operating Officer

Significant concurrent positions

Chairman of The Mentholatum Company
Outside Director of Bacchus Bio innovation Co., Ltd.

3. Masaya Saito

10. Tatsuo Uemura

11. Eriko Hayashi

12. Masanori Kimura

Executive Vice President
Chief Financial Officer (CFO)

Outside Director

Outside Director

Significant concurrent positions

Significant concurrent positions

Significant concurrent positions

Significant concurrent positions

Representative Director andChairman of Amato Pharmaceutical Products, Ltd.

President and Director of The Mentholatum Company

Outside Director of Meiji Yasuda Life Insurance Company

Outside Audit & Supervisory Board Member of Kaizen Platform, Inc.

Chief Executive Officer of Rohto-Mentholatum (Vietnam) Co., Ltd.

Outside Director of Shochiku Co., Ltd.

Representative of ERI LAW OFFICE

Audit & Supervisory Board member(Full-time)

Outside Director of Change Inc.
Representative Partner of ERIO G.K.
Outside Audit & Supervisory Board Member of Mujin, Inc.

4. Shinichi Kunisaki

5. Chiharu Takakura

Managing Director
Chief Technical Officer (CTO)

Director
Chief Human Resource Officer (CHRO)

Significant concurrent positions

President and Representative Director of Qualitech Pharma Co., Ltd.

6. Atsushi Hiyama
Director
Chief Communication Officer (CCO)

13. Hideto Uemura
Audit & Supervisory Board member(Full-time)

14. Katsusuke Amano

15. Yasuhiro Tani

Outside Audit & Supervisory Board member

Outside Audit & Supervisory Board member

Significant concurrent positions

Significant concurrent positions

Significant concurrent positions

Attorney at Law

Certified Public Accountant, Representative of CPA Tani Accounting OfficeOutside Audit & Supervisory Board Member of NGK SPARK PLUG CO., LTD.

Attorney at Law, Kitahama Partners

Outside Director and member of the Audit & Supervisory Committee

Outside Corporate Auditor of Aoyama Capital Co., Ltd.

of Noritz Corporation.

Outside Audit & Supervisory Board Member of Toyo Tire Corporation

7. Hidetoshi Segi
Director
Chief Strategy Officer (CSO)

8. Akie Iriyama

9. Haruka Mera

Outside Director

Outside Director

Significant concurrent positions

Significant concurrent positions

Professor of Waseda Business School

Representative Director & CEO of READYFOR, Inc.

7

6

5
8

3

4
11

1

12

13

2

14

10

15

9

Outside Director of Sanoh Industrial Co., Ltd.
Outside Director of SEPTENI HOLDINGS CO., LTD.
Outside Director of SORACOM, INC.

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Rohto’s Vision

Rohto’s
Value Creation Process

Sustainability

Corporate Governance

Data Section

Compliance
Basic Approach to Compliance

Anti-corruption

As a means of promoting compliance with laws and regulations, based on our corporate philosophy and the concept of“Never Say Never,” our corporate identity, we have established a Rohto CSR Charter, which summarizes, in 10 principles, our approach to environmental protection, human rights protection, and anti-corruption as the foundation of ourcompliance system, and Rohto CSR Action Guidelines, which summarizes the ethics and values that all members shouldobserve.

Our goal is to create a truly healthy and progressive society. To accomplish this goal, we deny and work to prevent any
form of corruption, including bribery. We do not respond to any act of obstruction or harassment, or any request for
unfair benefits. We do business in over 110 countries. Overseas, we must abide by the laws and common sense of thelocal country and follow the culture and customs of that country. However, we do not follow practices that are consideredwrong by international standards, such as bribery. Through our corporate activities, we will strive to contribute to theeconomic, social, and cultural development of the country in which we operate.

Rohto CSR Charter
1. We provide safe, reliable products and services.

6. We will encourage social contribution activities.

2. We will engage in fair and free competition and practice correct

7. We resolutely confront anti-social forces.

business activities.
3. We disclose company information in a timely and appropriatemanner to advance transparency of corporate activities.
4. We respect human rights of our employees, care for their healthand safety, and treat them fairly.
5. We will actively work to conserve and protect the global environment.

8. We keep your personal information strictly confidential.
9. We properly manage company assets and information andprepare appropriate books and accounting records.
10. We make a clear distinction between business activities andprivate activities.

Whistleblowing System
We have set up a Rohto Hotline, as an internal reporting system for employees to consult and report illegal or potentially
illegal activities, including harassment and corruption in the workplace. The Rohto Hotline is connected to an outside law
firm to ensure that whistleblowers are not subjected to any disadvantages, thereby providing a system for dealing withissues that are difficult to resolve within the workplace.
From January 2022, we strengthened the whistleblowing system by expanding the Rohto Hotline to incorporate 10
domestic Group companies and it became known as the Rohto Group Hotline.

Compliance Promotion System
Based on the recognition that the promotion of compliance is one of the most important management issues, in 2020
we established a Compliance Committee, chaired by the Representative Director. The Committee comprehensively
promotes compliance with social norms and the strengthening of corporate ethics, and promptly reports importantcompliance matters the Committee is involved in to the Board of Directors.

Initiatives to Ensure Thorough Compliance[Compliance Awareness Survey]
We conduct employee awareness surveys to ascertain current awareness and confirm effectiveness by tracking changes
over time and to periodically review compliance-related standards of conduct. In fiscal 2021, the survey targetedmanagers and leaders. We plan to expand the target in the future.
[Training for managers and employees]
We conducted compliance webinars for division heads and harassment training for newly appointed managers andleaders. We have also started to offer e-learning to all employees to ensure they understand the importance of legal
compliance and Rohto’s compliance system. We will continue to promote understanding throughout Rohto.
[Strengthening of transmission of compliance-related information]• We publish a monthly “Compliance Newsletter” in an effort to share information on overall compliance, including legal
matters and harassment.
• Case studies are presented to managers on a weekly basis, and a “compliance quiz” is given to all employees in order
to consolidate compliance knowledge and raise awareness.

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Rohto’s

Rohto’s Vision

Sustainability

Value Creation Process

Corporate Governance

Data Section

Financial and Non-Financial Highlights
Consolidated Financial Highlights
Net Sales

Operating Income and Share of Net Sales

199.6

29.3

billion yen(billions of yen)

200.0

183.5

171.7

188.3

(billions of yen)

199.6

20.0
100.0

11.1

2017

2018

2019

2020

2021

0

(FY)

Progress in vaccination and the resumption of economic activity led
to a recovery in consumer sentiment, which contributed to sales
growth.

Profit Attributable to Owners of Parent and Return on Equity

21.0(billions of yen)billion yen /

20.8

20.0

ROE

7.6

7.6

9.2

9.7

2017

2018

15.4

2019

2017

2018

11.7

27.0

(%)

29.3

20

(billions of yen)

300.0

Total assets

10

16.7

2021

(FY)

200.0

5

100.0

0

0

200.9

10.0

9.5

2017

2018

22

12.7

10

64.8

10.8

%

(%)

(billions of yen)

100

12.0
65.1

64.4

68.8

2020

0

(FY)

9.0

%

(%)

20

226.1

2017

2018

2019

2020

2021

(FY)

Despite the continuance of a harsh business environment due to the
COVID-19 pandemic, we were able to stably maintain the equity ratio
at a high level.

0

30

28
19.1

19.5

10.9

10.8

8.7

9.0

7.9
6.5

6.8

7.0

2017

2018

2019

6.0

20

0

2017

2018

2019

2020

2021

(FY)

0

In fiscal 2021, the dividend was increased by 8 yen. We plan torealize an annual dividend of 40 yen for fiscal 2022. This will be
the 19th consecutive year that we have raised our dividend.

0

Non-Financial Highlights

14,249*

2021

(FY)

0

HR

Ratio of Female Managers

31.1

t/year

%(%)

20,00040
14,66913,957

13,32731.1

14,249*10,000

20

5,000

10

2017

2018

2019

2020

2021

27.0

30

(FY)

Although CO2 emissions increased due to increased production and the start ofoperations at a new production facility, total CO2 emissions increased only slightly
due to the use of renewable energy and energy conversion through the expansionof solar power generation facilities and the upgrading of air conditioning units.

HR

External Challenge Work and

0

21.1

19.2

2017

2018

22.8

2019

2020

2021

(FY)

We are actively recruiting women and steadily growing the ratio of
women in management positions.

HR

Internal Double Jobs
External Challenge Workbillion yen

Internal Double Jobs
(persons)

123
9.8

10.8
81

1.9

%

40

81

63

Smoking Rate

(%)

98

8.1

30
62

70

52

20

54

49

11.6
7.7

10
2018

(FY)

*Changed the calculation standards to match the GHG Protocol from FY2021.

11.5

2017

2021

*Rohto Pharmaceutical Co., Ltd. only (non-consolidated)(t/year)02020

We carried out advanced investment aimed at medium- to long-term
growth in the ophthalmology area and regenerative medicines.

11.6
10

2020

(billions of yen)10

15,000

3.0

25

19.2

20

15,772

6.0

50

25

26

Environment CO2 Emissions (Scope 1 and 2)

11.6

215.6

9.6
64.8

2021

There was a steady increase in total and net assets, while ROA wasmaintained above 10%.

Free Cash Flow

29.1

billion yen

3.0

ROA

2019

40

10

274.6
198.1

(%)

Dividend payout ratio

22.9

12.6
21.0

2020

(%)

billion yen /Dividend per share

36

30

Total Assets and Return on Assets

Equity Ratio

64.2

2019

%

40

As a result of a significant sales growth and efforts to efficiently utilize
selling, general and administrative expenses, the Company achieved
a significant increase in profit.

15

We also posted a record amount of profit attributable to owners ofparent, with five-year average ROE rising to 10.1%.

0

(yen)

14.7

%

Profit attributable to owners of parent

11.4

75

8.7

%

Share of net sales

12.3

11.3

12.6 274.6

30.0

0

19.0

36 19.5
yen /

14.7

23.0

R&D Expenses

10.0

50.0

10.0

Operating income

30.0

181.2

150.0

0

billion yen /Dividend per Share and Dividend Payout Ratio

2019

2020

2021

0

(FY)

We ensured that free cash flow always remained positive while still investing in new projects and spending on facilities and equipment.

2017

2018

2019

2020

2021

(FY)

We further expand our employees’ potential through their work in
multiple jobs.

2017

2018

0.1

0.1

1.9

2019

2020

2021

(FY)

We will continue to work toward our zero smoking rate goal.

Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the current fiscal year, and thefigures for the fiscal year ended March 31, 2022 are after the application of the said accounting standard, etc. The provisional accounting treatment for business combinations has
been finalized in the current fiscal year. The figures for the fiscal year ended March 31, 2021 have been restated accordingly.

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Rohto’s

Rohto’s Vision

Value Creation Process

Sustainability

Corporate Governance

Data Section

Key Financial Data (11-Year Summary)
(FY)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Net sales (million yen)

120,292

129,146

143,822

151,774

167,016

154,599

171,742

183,582

188,327

181,287

199,646

Gross profit (million yen)

70,49575,87386,15790,59999,226

91,344

101,049

109,624

114,240

106,726

116,488

Share of net sales (%)

58.6

58.8

59.9

59.7

59.4

59.1

58.8

59.7

60.7

58.9

58.3

56,871

61,493

69,33677,44083,54375,893

81,96288,812

91,154

83,736

87,139

47.3

47.6

48.2

51.0

50.0

49.1

47.7

48.3

48.4

46.2

43.6

13,624

14,38016,821

13,15915,683

15,451

19,087

20,812

23,08522,99029,349

Share of net sales (%)

11.3

11.1

11.7

8.7

9.4

10.0

11.1

11.3

12.3

12.7

14.7

Ordinary income (million yen)

13,684

14,73017,10014,09815,33915,964

18,84918,97022,73523,91029,084

Share of net sales (%)

11.4

11.4

11.9

9.3

9.2

10.3

11.0

10.3

12.1

13.2

14.6

8,184

8,087

8,947

8,631

9,098

10,011

9,289

9,799

15,41016,74321,018

Share of net sales (%)

6.8

6.3

6.2

5.7

5.4

6.5

5.4

5.3

8.2

9.2

10.5

R&D expenses (million yen)

3,717

4,062

4,547

5,585

5,811

6,123

6,553

6,831

7,050

7,903

8,740

Depreciation (million yen)

4,744

5,256

5,735

6,059

6,044

5,552

5,593

6,159

6,058

6,376

7,216

Return on assets (ROA) (%)

10.4

10.3

10.9

8.3

8.6

8.8

10.0

9.5

10.9

10.8

11.6

Return on equity (ROE) (%)

10.2

9.2

9.4

8.4

8.3

8.8

7.6

7.6

11.4

11.7

12.6

Total asset turnover (Times)

0.92

0.90

0.92

0.89

0.94

0.86

0.90

0.92

0.90

0.82

0.80

Trade receivable turnover (Times)

3.90

4.05

4.44

4.22

3.80

3.24

3.54

3.86

3.94

3.66

4.01

Inventory turnover (Times)

7.01

6.89

7.04

6.91

7.32

6.63

6.89

6.5

6.19

6.19

6.50

Current ratio (%)

158.6

156.3

146.5

162.6

171.4

189.0

186.2

191.6

209.5

235.7

229.8

Equity ratio (%)

60.9

61.7

60.2

61.7

61.4

64.7

64.2

65.1

64.4

68.8

64.8

Interest coverage ratio (Times)

74.1

118.7

126.7

78.0

80.6

138.8

165.2

184.6

197.7

194.7

149.5

Debt-to-equity ratio (Times)

0.13

0.1

0.13

0.11

0.07

0.07

0.07

0.06

0.08

0.07

0.14

Total assets (million yen)

136,008

150,643

162,249

177,509

179,573

181,543

198,166

200,953

215,644

226,149

274,627

Net assets (million yen)

83,627

93,771

98,627

110,516

111,271

118,436

128,440

132,189

140,032

156,612

183,832

786

6,107

6,041

2,268

5,258

3,917

8,140

11,500

9,635

9,771

10,844

15,381

19,86723,02625,09322,49523,46630,06337,34544,66552,25470,905

Net income per share (¥)

69.6

68.78

77.15

76.05

80.04

87.95

81.55

86.00

135.13146.78184.26

Net assets per share (¥)

703.93789.83861.49964.18969.22

1,030.96

1,115.94

1,147.42

1,217.67

1,363.42

1,559.62

Dividends per share (¥)

16

17

18

19

20

21

22

25

26

28

36

Dividend payout ratio (%)

23

24.7

23.3

25

25

23.9

27.0

29.1

19.2

19.1

19.5

Price-earnings ratio (Times)

14.8

18.7

23.6

22.5

25.6

23.7

36.5

33

21.9

20.1

20.1

Price-book value ratio (Times)

1.5

1.6

2.1

1.8

2.1

2

2.7

2.5

2.4

2.2

2.4

Business Performance

Selling, general and administrative expenses (million yen)
Share of net sales (%)
Operating income (million yen)

Profit attributable to owners of parent (million yen)

Profitability Indicators

Efficiency Indicators

Stability Indicators

Financial Position

Cash Flows (Consolidated)
Free cash flow* (million yen)
Cash and cash equivalents at end of period (million yen)
Per Share Information

Other Financial Information*Net cash provided by operating activities + Net cash used in investing activities
Note) The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the current fiscal year, and thefigures for the fiscal year ended March 31, 2022 are after the application of the said accounting standard, etc. The provisional accounting treatment for business combinations has
been finalized in the current fiscal year. The figures for the fiscal year ended March 31, 2021 have been restated accordingly.

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Rohto’s

Rohto’s Vision

Non-Financial Data

Sustainability

Value Creation Process

Corporate Governance

Data Section

Corporate Data (as of March 31, 2022)
Rohto Pharmaceutical Co., Ltd. only (non-consolidated)

(FY)

2016

2017

2018

2019

2020

Company Profile

2021

Rohto Pharmaceutical Co., Ltd.

Company Name

Employees and Workstyles
Employees (persons)

1,562

1,400

1,474

1,529

1,595

1,599

Women (persons)

918

805

857

883

918

933

Men (persons)

644

595

617

646

677

666

Turnover rate (%)

4.6

5.4

5.3

3.1

2.7

2.4

Participants in internal double jobs (persons)

36

49

70

54

98

123

Participants in external challenge work (persons)

25

63

81

81

62

52

Paid annual leave taken (%)

62.2

65.3

70.1

71.6

67.4

61.3

Ratio of Female Managers (%)

18.6

19.2

21.1

22.8

27.0

31.1

64

105

100

94

100

48

Women (persons)

64

104

99

93

95

40

Men (persons)

0

1

1

1

5

8

100

98

93

95

100

100

*1

Uptake of parental leave (persons)*2

Uptake of parental leave among women (%)*2

Return to work after parental leave among women (%)
Employment of people with disabilities (%)

Chairman and Chief Kunio
Executive Officer
YamadaAudit & Supervisory
Board member(Full-time)
Audit & Supervisory
Board member(Full-time)
Outside Audit &Supervisory
Board member
Outside Audit &Supervisory
Board member

President and Chief Masashi
Operating Officer
Sugimoto

Managing Director

ShinichiKunisakiDirector

Chiharu
Takakura
AtsushiHiyamaHidetoshi
Segi

95

96

100

95

98

100

1.90

1.84

2.08

2.10

2.30

2.40

Director

Pleasantly surprised testimonials*3 (cases)

1,669

1,293

1,191

1,963

2,403

2,866

Improvements and findings (cases)

11,758

10,637

10,367

9,585

10,465

10,634Social Contributions
Donors to Michinoku Future Fund (persons)

854

866

858

897

Ended*4

Ended*4

Donors to Karugamo Fund (persons)

934

945

929

953

944

968

Changes in crude oil equivalent (kl)

8,160

8,175

8,015

8,179

7,930

8,264

Total CO2 emissions (t/year) (Scope1 and 2)

15,846

15,772

14,66913,957

13,327

14,249*5

0.177

0.163

0.141

0.131

0.132

0.141

Environment

Sales intensity (t/million yen)

Audit & Supervisory Board Members

MasayaSaito

Total CO2 emissions (t/year) (Scope3)

Akie
Iriyama

Outside Director

HarukaMera

Outside Director

TatsuoUemuraOutside Director

ErikoHayashi

6,504 million yen

Number of Shares Authorized 399,396,000 shares

Masanori
KimuraNumber of Shares Issued

114,069,893 shares(excl. 4,019,262 treasury shares)

HidetoUemuraNumber of Shareholders

16,288

Katsusuke
Amano
Yasuhiro
Tani

Shareholdings by Shareholder TypeTreasury shares 3.40%

Japanese financial instruments
business operators 0.95%

Japanese companies
and corporations 10.97%

Japanese financial
institutions 34.23%

Japanese individuals
and others 20.67%

Non-Japanese companies 29.78%

Major Shareholders (Top 10)
Shareholdings(thousand shares)

Voting stake(%)

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

17,49015.33

STATE STREET BANK AND TRUST COMPANY 505223

9,447

8.28

Custody Bank of Japan, Ltd. (Trust account)

8,923

7.82

1.667

MUFG Bank, Ltd.

3,800

3.33

2,968

2.60

168,720

Sales intensity (t/million yen)

Outside Director

CapitalSharesDirectors

Executive Vice
President

September 15, 1949

Number of Employees 6,866 (consolidated basis)
1,599 (non-consolidated basis)

Directors and Officers

Director

Products and Quality

February 22, 1899

FoundedIncorporated

Shareholder

Electricity consumption (1,000 kWh/year)

23,99423,711

24,28925,11024,914

26,055

Kiyoko Yamada

Sales intensity (1,000 kWh/million yen)

0.268

0.245

0.233

0.236

0.247

0.257

Yamada Kosan Limited Private Company

2,807

2.46

Sansho Kosan Co., Ltd.

2,548

2.23

2,395

2,410

2,087

2,072

2,913

3,014

Nippon Life Insurance Company

2,119

1.85

Kunio Yamada

1,954

1.71

HSBC-FUND SERVICES, HBAP CLTS UCITS A/C - IRELAND

1,806

1.58

City gas consumption (1,000 m3/year)
3

Sales intensity (m /million yen)
Water usage (1,000 m3/year)
Sales intensity (m3/million yen)

27

25

20

19

29

30

275

290

266

271

248

263

3.1

3.0

2.5

2.5

2.5

2.6

Changes in Stock Price and Trading Volume

Health Management
Employees performing 8,000-step walking and

28.2

41.0

44.4

48.5

29.3*6

52.3

Obesity (men; BMI ≥ 25) (%)

21.9

24.0

22.5

25.6

26.2

25.2

Obesity (women; BMI ≥ 25) (%)

13.7

15.3

15.2

16.4

16.6

17.4

Smoking rate (%)

12.5

11.6

7.7

0.1

0.1

1.9

20-min. Brisk walking at the time of events (%)

Anemia among female employees (%)*Criteria: hemoglobin (Hb) levels < 10.9 g/dL (since 2020, < 12.0 g/dL)Note) The Holding Ratio has been calculated by deducting the treasury stock (4,019,262 stocks).

Stock Price
(yen)
5,000

7.3

5.1

4.9

5.1

7

14.3*

*1 Excludes mandatory retirees and part-time employees.

*5 Changed the calculation standards to match the GHG Protocol from FY2021.

*2 Most people leave the Company due to a job relocation of their spouse.

*6 Implemented in 2020 during Japan’s state of emergency.

*3 Positive responses such as letters of appreciation from customers*7 Changed the diagnostic criteria in 2020 (to align with the WHO criteria).

14.8

Trading Volume(thousand yen)

ROHTO Pharmaceuticaltrading volume

25,000

ROHTO Pharmaceuticalstock price

20,00015,0002,500
10,0005,000*4 This program ended following the end of the collection of donations.

075

ROHTO Well-being Report 2022

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

ROHTO Well-being Report 2022

076

Rohto’s Vision

Rohto’s

Sustainability

Value Creation Process

Corporate Governance

Data Section

Global Network
Europe

Asia

33
31

Dax Cosmetics Spolka Z Organiczona
Odpowiedzlalnoscia

Mentholatum (Asia-Pacific) Ltd.

Mentholatum (China)
Pharmaceuticals Co., Ltd.

32

PT. Rohto Laboratories Indonesia

Rohto-Mentholatum (Vietnam)Co., Ltd.

Tianjin Rohto Herbal Medicine
Co., Ltd.

EuropeNorth America
19

11

2
21

1

4

Japan

30
The Mentholatum Company, Ltd.
(U.K.)

20

18
28

29

26

3
8

16

22

7

The Mentholatum Company, Inc.

5

13

6

17

27

14
15

South America

23

Africa12

10

9Qualitech Pharma Co., Ltd.

24

35

25

Oceania
Rohto Mentholatum
do Brasil Ltda
Mentholatum South Africa Pty. Ltd.

Rohto Group34
36
Mentholatum Australasia Pty. Ltd.
(Australia)

The Company,

Ophthalmos S.A.

Countries with business footprint

65 subsidiaries, and 16 affiliates More than110 countries

Main Subsidiaries and Affiliates
Company Name

Japan

Location

19 Tianjin Rohto Herbal Medicine Co., Ltd.

Tianjin, China

2 Mayado Pharmaceutical Co., Ltd.

Kobe, Hyogo Pref.

20 Mentholatum Taiwan Ltd.

Taipei, Taiwan

3 Rohto Nitten Co., Ltd.

Nagoya, Aichi Pref.

21 Mentholatum (AP) Ltd., Korea Branch

Seoul, South Korea

4 Interstem Co., Ltd.

Hachioji, Tokyo

22 Rohto-Mentholatum (Thailand) Ltd.

Bangkok, Thailand

3 affiliated companies accounted

5 Amato Pharmaceutical Products, Ltd.

Toyonaka, Osaka Pref.

23 Rohto-Mentholatum (Malaysia) Sdn. Bhd.

Kuala Lumpur, Malaysia

16 other companies

6 MG Pharma Inc.

Ibaraki, Osaka Pref.

Singapore

7 Ceres Okinawa Co., Ltd.

Ogimi, Okinawa Pref.

company accounted for by theequity-method

24 Rohto-Mentholatum Singapore Office

Jakarta, Indonesia

8 Yaeyama Farm Co., Ltd. (Specific agricultural production company)

Ishigaki, Okinawa Pref.

9 other companies

25 PT. Rohto Laboratories Indonesia
26 Rohto-Mentholatum (Vietnam) Co., Ltd.

Ho Chi Minh, Vietnam

9 Hokushinfoods Co., Ltd.

Ebetsu, Hokkaido Pref.

27 Rohto-Mentholatum (Lanka) Pvt. Ltd.

Colombo, Sri Lanka

10 The Mentholatum Company, Inc.

New York, U.S.A.

28 Rohto-Mentholatum (Cambodia) Co., Ltd.

Phnom Penh, Cambodia

11 Hydrox Laboratories, Inc.

Illinois, U.S.A

29 Rohto-Mentholatum (Myanmar) Co., Ltd.

Yangon, Myanmar

12 The Mentholatum Company of Canada, Ltd.

Ontario, Canada

30 Rohto-Mentholatum (Nepal) Pvt. Ltd.

Kathmandu, Nepal

13 Mentholatum de México S.A. de C.V.

Mexico City, Mexico

31 The Mentholatum Company, Ltd. (U.K.)

Scotland, U.K.

14 Rohto Mentholatum do Brasil Ltda

Sao Paulo, Brazil

32 Dax Cosmetics Spolka Z Organiczona Odpowiedzlalnoscia

Mazowieckie Province, Poland

15 Ophthalmos S.A.

Sao Paulo, Brazil

33 Rohto Mentholatum RU LLC

Moscow, Russia

16 Mentholatum (Asia-Pacific) Ltd.

Hong Kong, China

34 Mentholatum South Africa Pty. Ltd.

Cape Town, South Africa

17 Rohto Advanced Research HK Ltd.

Hong Kong, China

35 Rohto-Mentholatum (Kenya) Ltd.

Nairobi, Kenya

18 Mentholatum (China) Pharmaceuticals Co., Ltd.

Guangdong Province, China

36 Mentholatum Australasia Pty. Ltd.

Victoria, Australia

The Company and 14 consolidated
subsidiaries

9 consolidated subsidiaries
6 other companies

Asia

77

Company Name

Minato-ku, Tokyo

for by the equity-method

Americas

Location

1 Qualitech Pharma Co., Ltd.

ROHTO Well-being Report 2022

Asia

Europeand Africa
Oceania

13 consolidated subsidiaries
1 non-consolidated affiliated9 consolidated subsidiaries
1 other company

1 consolidated subsidiary

ROHTO Well-being Report 2022

78

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

Issued in November 2022
Printed in Japan