Nippon Shinyaku Co., Ltd. · TSE:4516
Nippon Shinyaku — ESG Presentation (October 2023)
63 slides from Nippon Shinyaku's sustainability presentation, Oct 3, 2023
Slide 1: FY2023 ESG Meeting
FY2023 ESG Meeting October 3rd, 2023 NIPPON SHINYAKU CO., LTD.
Slide 2: Today's Agenda
Today's Agenda 1. Nippon Shinyaku's Value Creation and Promoting Sustainability 2. Initiatives for Materiality 3. Exchange of views 2
Slide 3: Nippon Shinyaku's Value Creation and Promoting Sustainability
Nippon Shinyaku’s Value Creation and Promoting Sustainability
Slide 4: Business philosophy
Business philosophy Helping People Lead Healthier, Happier Lives 1919 1940 2016 2020 In an era when new drugs In 1940, Nippon Shinyaku Uptravi for PAH *, launched We launched Viltepso, the originating in Japan were succeeded in in 2016, is now sold in over first nucleic acid drug limited, Nippon Shi
Slide 5: Our corporate vision
Our corporate vision Nippon Shinyaku's Vision A company with a meaningful existence in the global healthcare field Corporate Philosophy Belief for realizing our vision Helping People Lead Healthier, Happier Lives Formulated in March, 2023 Policy to clarify the stance of Sustainability Policy promoti
Slide 6: Revision of Sustainability Policy and materiality items
Revision of Sustainability Policy and materiality 19 items of In April 2021: Identified 19 items as materiality Value Creation : 5 items Environment : 4 items Society : 5 items In January 2022: Governance : 5 items Building sustainability promotion system Board of ・Analyzing risks and opportunities
Slide 7: Nippon Shinyaku Sustainability Policy
Nippon Shinyaku Sustainability Policy <Sustainability Policy> Guided by its Corporate Philosophy “Helping People Lead Healthier, Happier Lives,” the Nippon Shinyaku Group strives to ensure sustainable growth as a “company with a meaningful existence in healthcare.” Recognizing responses to environme
Slide 8: Value Creation Process
Value Creation Process We will create social value by providing highly unique pharmaceutical drugs in areas and fields with unmet treatment needs globally based on our fundamental technologies. 8
Slide 9: Materiality and Nippon Shinyaku's growth
Materiality and Nippon Shinyaku's growth Realizing a healthy future by creating innovation ・Contributing to people‘s health through the creation of products and services with unique characteristics ・Maintaining a safe and high-quality supply of products ・Promoting DX ・Strengthening patient support a
Slide 10: Our initiatives for materiality and sustainable growth
Our initiatives for materiality and sustainable growth We aim to expand revenue in the future to 300 billion yen, and from there to Revenue （FY2022） 500 billion yen. 144.175 billion yen Operating Profit（FY2022） 30.049 billion yen Net Sales/Revenue Operating income We aim to create sustainable value
Slide 11: Our Initiatives for Materiality
Our Initiatives for Materiality
Slide 12: Nippon Shinyaku Group's Issues of Materiality
Nippon Shinyaku Group’s Issues of Materiality 12
Slide 13: Realizing a healthy future by creating innovation
Realizing a healthy future by creating innovation • We will promote drug discovery using nucleic acid drugs, new modalities and methods as well as small molecule drugs and R&D from the perspective of Patient Centricity. In the end, we will contribute to the health of people with creation of our prod
Slide 14: Realizing a healthy future by creating innovation
Realizing a healthy future by creating innovation Contributing to people‘s health through the creation of products and services with unique characteristics Main Activities FY2022 Activities Issues and FY2023 Strategies Enhanced technologies related to small molecules and nucleic acids and introduc
Slide 15: Realizing a healthy future by creating innovation
Realizing a healthy future by creating innovation Initiatives based on the concept of Patient Centricity • Based on the concept of Patient Centricity, we communicate with patients and their families directly. Since last year, we have held the e-sports competition for children with handicap and in-ho
Slide 16: Developing diverse human resources and realizing employee well-being
Developing diverse human resources and realizing employee well-being • Based on the idea that unique products are the product of unique people, we respects diversity in terms of sex, age, nationality, and beliefs, and provides opportunities for individuals to take on challenges and grow in a positiv
Slide 17: Developing diverse human resources and realizing employee well-being
Developing diverse human resources and realizing employee well-being Creating an environment where each person can grow and play an active role Main Activities FY2022 Activities Issues and FY2023 Strategies Instilled the NS Mind Increase the number of NS Academy participants Create the NS Mind
Slide 18: Developing diverse human resources and realizing employee well-being
Developing diverse human resources and realizing employee well-being Creating an environment where each person can grow and play an active role [NS Academy] Toward realizing self-directed career development and placing of the right employee in the right position, we launched the NS academy. Four The
Slide 19: Developing diverse human resources and realizing employee well-being
Developing diverse human resources and realizing employee well-being Promoting diversity, equity & inclusion Main Activities FY2022 Activities Issue and FY2023 Strategies Conducted project activities by the Personnel Department and employees recruited from throughout the Company with the goal of e
Slide 20: Resolving social issues and coexisting with the community
Resolving social issues and coexisting with the community • We believe that not only research and development of drugs, also the development of the scientific field itself is indispensable to produce innovative drugs. Therefore, we will present scientific knowledge in papers and academic societies a
Slide 21: Resolving social issues and coexisting with the community
Resolving social issues and coexisting with the community Contributing to the healthcare field beyond the provision of medicines Main Activities FY2022 Activities Issue and FY2023 Strategies Contributed to the development of related science fields by Publishing scientific findings through academ
Slide 22: Resolving social issues and coexisting with the community
Resolving social issues and coexisting with the community Contributing to the future of children Main Activities FY2022 Activities Issue and FY2023 Strategies The Nippon Shinyaku Sparkling Future Mobile Library: Providing educational and mental well- participated in 27 events/Total number of pic
Slide 23: Strengthening efforts to protect the global environment
Strengthening efforts to protect the global environment When we seek growth, it should be growth in harmony with the natural environment. That is why we strive to protect, sustain, and improve the environment through eco-considerate business activities. The specific targets for realizing this policy
Slide 24: Strengthening efforts to protect the global environment
Strengthening efforts to protect the global environment Climate change countermeasures Greenhouse gas emission reduction target FY2022 Annual power consumption 14,000 Renewable energy Base year 12,000 (20% reduction compared to 2013) 10,000 Green procurement Other 12.6% reduction compared to 2020 8,
Slide 25: Strengthening efforts to protect the global environment
Strengthening efforts to protect the global environment • The Yamashina Botanical Research Institute conserves approximately 3,000 varieties of plants, including 160 species that are the botanical origins of herbal medicines recorded in the Japanese Pharmacopoeia, the plants regulated by CITES such
Slide 26: Strengthening governance
Strengthening governance • Considering with providing our drugs to various countries where we have not launched, we will promote integrity with further ensuring compliance and strengthening governance including subsidiaries outside of Japan. • We will strengthen risk management and disclose appropri
Slide 27: Strengthening governance
Strengthening governance Promoting integrity Main Activities FY2022 Activities Issues and FY2023 Strategies Enhanced items disclosed in the Corporate Governance Report Strengthening governance including at Further strengthening governance Implemented company-wide activities to raise awarenes
Slide 28: Strengthening governance
Strengthening governance Promoting integrity Main Activities FY2022 Activities Issues and FY2023 Strategies Enhancing compliance Implemented compliance training and awarenessraising Continue compliance training and awareness-raising activities for Promoting fair and transparent business init
Slide 29: Strengthening governance
Strengthening governance Strengthening risk management Main Activities FY2022 Activities Issues and FY2023 Strategies Identified critical risks and countermeasures Requested the departments responsible for each risk to prepare an action plan, and compiled them Conducted risk management self-ch
Slide 30: Initiatives to promote sustainability internally
Initiatives to promote sustainability internally Toward more active sustainable promotion, we conduct educational and awareness-raising activities for each employee according Nippon Shinyaku Sustainability Policy. • Donated sales by holding Lemonade Stand for the support group of pediatric cancer •
Slide 31: Initiatives to promote sustainability internally
Initiatives to promote sustainability internally • As a internal awareness-raising activity, we launched a project of Patient Centricity. • Purple day (March 26th）is a global grassroots event to increase worldwide awareness of epilepsy. On that day, we promoted understanding of the disease by wearin
Slide 32: Safe Harbor Statement
Safe Harbor Statement • Materials and information provided during this presentation may contain so-called “forward-looking statements.” These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and resu
Slide 33: Nippon Shinyaku Co., Ltd. ESG Briefing
Nippon Shinyaku Co., Ltd. ESG Briefing October 3, 2023
Slide 34: Presentation
Presentation Nakai: I am Toru Nakai, President of Nippon Shinyaku Co., Ltd. Thank you for joining us for our ESG meeting today. I appreciate it very much. This will be our first ESG meeting. Until now, we have had opportunities to explain our approach to business performance at financial results bri
Slide 35: Presentation transcript: corporate philosophy and vision
DMD, for patients around the world who are suffering from illnesses. Even if the number of patients is small, it has led to the global delivery of our products. We believe that working toward the realization of our corporate philosophy is the greatest contribution we can make to society. We aim to b
Slide 36: History of Sustainability Policy and materiality review
First, I will explain the history of the development of the Sustainability Policy and the materiality review. In 2010, we formulated our basic CSR Policy, which expresses the Company’s commitment to fulfilling its social responsibilities through sincere and fair business activities. In our sixth mid
Slide 37: Materiality identification and revision
external and internal environment, then identified issues. The issues were mapped on two axes of impact and priority on stakeholders and our business operations, and those of high importance were re-identified as materiality. Finally, in March 2023, the Board of Directors discussed and approved the
Slide 38: Value creation process
I will explain Nippon Shinyaku’s value creation process. Our business model is based on the capital we have accumulated, including financial, human, intellectual, social, relational, manufacturing, and natural capital. We will promote to continuously providing the world with valuable drugs in areas
Slide 39: Materiality initiatives and growth
Edamitsu will explain the details of each materiality initiative later, so I will now explain how we believe materiality initiatives are linked to the growth of Nippon Shinyaku. We are committed to developing valuable medicines in areas and fields with unmet treatment needs, supplying them to the wo
Slide 40: Governance and global expansion
We believe that these items of materiality need to be addressed under solid governance. Our company aims to supply pharmaceuticals to patients globally. I was stationed in the US and was involved in the establishment of a sales structure at our US subsidiary, but as we consider expanding this to Chi
Slide 41: Approach to materiality
Edamitsu: I am Edamitsu, Director, Business Management & Sustainability Division. I will explain our approach to materiality. These are the lists of the 19 items of materiality that has been reviewed and reorganized into five items of materiality, activities, etc. In recent years, amid the importanc
Slide 42: First materiality: healthy future through innovation
I will explain the first materiality: Realizing a healthy future through by creating innovation. We will contribute to people’s health through the creation of unique products and services by promoting drug discovery utilizing nucleic acid drugs, new modalities, and new methods as well as small molec
Slide 43: Contribution to health through distinctive products
Regarding our contribution to people’s health through the creation of distinctive products and services, we are pursuing R&D based on three approaches: in-house drug discovery, in-licensing, and PLCM based on our fundamental technologies. With a perspective of patient centricity, we consider what we
Slide 44: Patient Centricity Project
We launched the Patient Centricity Project this fiscal year and have been working to create more opportunities for the voices of patients. Patient centricity means always placing the patient at the center of healthcare, focusing on the patient, and ultimately respecting the patient’s decision to the
Slide 45: Second materiality: human resources and well-being
I will explain the second materiality: Developing diverse human resources and realizing employee well-being. Based on the idea that unique products are the product of unique people, we respect diversity in terms of gender, age, nationality, and values, and provide opportunities for individuals to ta
Slide 46: Environment for growth and NS Mind
Regarding creating an environment where each person can grow and play an active role, we believe that the serious mind is the most powerful management resource of all to inspire action to create unique products. With our serious mind, it is necessary for each employee to grow more than ever to work
Slide 47: Human resource development themes
We are working on the following four themes for human resource development: Realizing employees treatment in line with roles, duties, and accomplishments, realizing self-directed career development and the placing of the right employee in the right position, realizing a highly psychologically safe o
Slide 48: Diversity, equity and inclusion
With regard to promotion of diversity, equity, and inclusion, we aim to foster our corporate culture that recognizes individuals regardless of age, gender, values, disabilities, etc. Since Nippon Shinyaku set a goal of increasing the ratio of female in executive positions to at least 15% starting fr
Slide 49: Third materiality: social issues and communities
In the third materiality, solving social issues and coexisting with communities, we believe it is necessary to respond to a wide range of social demands and grow sustainably together with society. We are engaged in the pharmaceuticals and functional foods businesses. In order to deliver innovative p
Slide 50: Public research grants
As a contribution to the healthcare field beyond the provision of pharmaceuticals, we offer public research grants. In FY2023, we have decided to support a total of 20 research projects in the fields of hematopoietic organ tumor, inherited muscular disorders, pulmonary hypertension, and urology with
Slide 51: Contribution to the future of children
In order to contribute to the future of children, we are conducting various activities that go beyond the provision of therapeutic drugs in order to realize our corporate philosophy of happier lives. We interact with local communities by serving as coaches in children’s baseball practices by offerin
Slide 52: Fourth materiality: protecting the global environment
I will explain the fourth materiality: strengthening efforts to protect the global environment. Nippon Shinyaku is aware of its responsibility for the environmental impact of its own operations and has established the Basic Environmental Policy to reduce environmental impact in all areas of our busi
Slide 53: Specific environmental initiatives
We will explain the details of our specific environmental initiatives. Global warming countermeasures have been positioned as the most important item that Nippon Shinyaku must address, and we have set a goal to achieve carbon neutrality by 2050. The sixth Nippon Shinyaku Voluntary Environmental Targ
Slide 54: Biodiversity conservation
In terms of biodiversity conservation, over 3,000 plant species are conserved at our Yamashina Botanical Museum, including 160 species of plants listed in the Japanese Pharmacopoeia as the base plants of herbal medicines, as well as 480 species of rare plants, including plants regulated by the Washi
Slide 55: Fifth materiality: strengthening governance
Regarding the fifth materiality, strengthening governance, strong governance is necessary for our business to remain stable and continue to grow. In aiming to provide pharmaceutical products to patients globally more than ever before, it is necessary to promote integrity by strengthening governance,
Slide 56: Governance including group companies
Regarding the strengthening governance including group companies, we are working to raise awareness of integrity and promote diversity in order to expand our global business. To incorporate diverse perspectives into the Board of Directors, in 2017, Director Sakurai became the Company’s first female
Slide 57: Compliance system
Next, I will explain our compliance and risk management systems. The Nippon Shinyaku Group has in place Compliance Operating Rules, with the director in charge of CSR and administration acting as the compliance officer and a department dedicated to overseeing compliance initiatives. In addition, a C
Slide 58: Risk management system
The Nippon Shinyaku Group aims to achieve sound growth and enhance corporate value through the reinforcement of its risk management system and ongoing risk management activities. The Group identified various possible risks under the basic risk management basic rules. Each of these risks is managed b
Slide 59: Initiatives to promote sustainability internally
Finally, I will explain our initiatives to promote sustainability internally. The Nippon Shinyaku Group conducts awareness-raising activities for each employee according to the Nippon Shinyaku Sustainability Policy. Since SDGs Week is held at the end of September every year to coincide with the Unit
Slide 60: Purple Day and employee awareness
As employees of a pharmaceutical company, we have started activities to raise employee awareness so that we can be as close as possible to patients’ feelings. Purple Day is a global grassroots event to increase worldwide awareness of epilepsy. On that day in March, employees wore purple items, which
Slide 61: FY2023 ESG Meeting Q&A (Summary)
FY 2023 ESG Meeting Q&A (Summary) Held on October 3, 2023 NO Questions Answers 1 The operating profit for The Sixth Mid-term Management Plan target is expected to fail to achieve. What requests As for the Seventh Mid-term Management Plan, an in-house project team was established in July and it is cu
Slide 62: Q&A summary continued
4 What is President Nakai's view based on the opinions of Ms.Sakurai? In the pharmaceuticals business, which is the company's core business, to sustain growth with accelerating its pace, we are keenly aware of the need to promote global R&D speedily and taking an action for achieving that. Regarding
Slide 63: Q&A summary continued
other pharmaceutical companies, but we believe that core technologies, particularly nucleic acid pharmaceuticals, are strengths that other companies do not have. We believe that active development in the field of diseases where other companies find difficult to enter and delivering of pharmaceutical