Slide 1: ESG Briefing: Towards Enhancing Corporate Value
ESG Briefing ~ Towards Enhancing Corporate Value ~ March 28, 2022 /42
Slide 2: Cautionary Notes
Cautionary Notes Forecasts and other forward-looking statements included in this document are based on information currently available and certain assumptions that the Company deems reasonable. Actual performance and other results may differ significantly due to various factors. Such factors include
Slide 3: Today's Program
Today's Program 1. Corporate Governance 2. Reduction in Strategic Cross-Shareholdings 3. Review of Materiality • Global Environmental Protection • Human Resource Development 2 /42
Slide 4: Corporate Governance
Corporate Governance ono ONO PHARMACEUTICAL CO, LTD. 3/42
Slide 5: Efforts to Strengthen Governance
Efforts to Strengthen Governance Chair of Executive Appointment Meeting Strengthening of /Executive Compensation Meeting Supervisory (President ⇒Outside Board of Director, Jan 2022) Function Three of 8 Board of Directors were Outside Board of Directors. Selection of female Board of 2022 Two women ar
Slide 6: Outside Board of Directors
Outside Board of Directors Three out of 8 Board of Directors are Outside Board of Directors with the aim of strengthening the supervising function of the Board of Director Meetings, maintaining and improving management transparency and the accuracy of business execution. Masao Nomura Akiko Okuno Shu
Slide 7: Skills Matrix for Board of Directors and Auditors
Skills Matrix for Board of Directors and Auditors 6 /42
Slide 8: Executive Appointment / Executive Compensation Meetings
Executive Appointment / Executive Compensation Meetings In order to ensure management transparency and objectivity, the executive appointment and executive compensation, both of which have governance- related importance are discussed at the meetings composed of highly independent Outside Board of Di
Slide 9: Supporting System for Outside Board of Directors
Supporting System for Outside Board of Directors Lectures on pharmaceutical business ・R & D activities for new drugs Understand the ・Trends in the ethical drug market, drug pricing system, new drug and commercial distribution business ・ Intellectual property in the pharmaceutical business etc. Parti
Slide 10: Evaluation of Effectiveness in Board of Director Meetings
Evaluation of Effectiveness in Board of Director Meetings Effectiveness in Board of Director Meetings is evaluated every year by all of the Board of Directors and Auditors Self-evaluation is conducted through questionnaires and interviews to improve the board Contributing to improvement of effective
Slide 11: Responses to the Issues Presented Last Year
Responses to the Issues Presented Last Year Roles and functions of the Board of Director Meetings ・Deepening discussions focusing on globalization ⇒ Enhance discussions on medium- and long-term management issues looking at Opdivo Cliff Role of Outside Board of Directors ・Role expansion in governance
Slide 12: Reduction in Strategic Cross-Shareholdings
Reduction in Strategic Cross-Shareholdings 11 /42
Slide 13: Results of Reduction of Cross-shareholdings
Results of Reduction of Cross-shareholdings (from Nov. 2018) ➢ Reduction plan（published on November 1, 2018） 単位：百万円 －Over the next 3 years, the company will reduce its cross-shareholdings by about 30% as of the end of March 2018 (111 brands, 167.1 billion yen). ➢ Results of reduction ・ Number of lis
Slide 14: Future Plan for Reduction of Cross-shareholdings
Future Plan for Reduction of Cross-shareholdings (from Oct. 2021) ➢ Next reduction plan 単位：百万円 ・Period: October 2021 to March 2025 (3 and a half years) ・Details of reduction plan: 30% reduction from the end of September 2021 (141.8 billion yen) ※The company plans to reduce its cross-shareholdings to
Slide 15: Changes in Reduction of Cross-shareholdings
Changes in Reduction of Cross-shareholdings ➢ Reduce cross-shareholdings by less than 20% of net assets by the 単位：百万円 end of March 2022 ➢ As of March 23, 2022, the ratio to net assets was 18.6% ➢ Results of reduction ¥ bil Changes at the end of each period 180.0 31.6% 35.0% 170.0 26.3% 30.0% 160.0 2
Slide 16: Review of Materiality
Review of Materiality im ONO PHARMACEUTICAL Co,lTD. 15/42
Slide 17: Sustainable Management Policy: Contributions to People's Health
Sustainable Management Policy For more than 300 years since our founding, we have walked hand in hand with society. To save people who are suffering from disease, we have created a series of innovative new medicines that were thought to be impossible. We will continue to contribute to people’s healt
Slide 18: New Materiality: From CSR issues to management issues
New Materiality 【New】サステナブル経営方針 From CSR issues 【New】Sustainable management policy to management issues これまでのマテリアリティ Past materiality • We have promoted materiality as “important CSR issues” so far. • We updated our materiality as “important management issues” to manage financial and non-financial i
Slide 19: New Materiality: Value Creation
New Materiality Value Creation Value Preservation Creation of innovative Maximization of （Erosion risks） drugs product value Assurance of product Realizing of direct sales reliability and safety Pipeline expansion in the US and Europe Stable supply of Expansion of business domains products Protectio
Slide 20: Global Environmental Protection
Global Environmental Protection 19 /42
Slide 21: Environmental VISION (Established in June 2019)
Environmental VISION (Established in June 2019) 1 Greenhouse gas 1 2 3 2 Water consumption 3 Waste 1.Maintain final disposal of industrial waste at 1% or less Reduce water resource consumption (water every year. intake) by 15% per production volume unit Our company's zero emissions standards are def
Slide 22: Organization for Environmental Promotion
Organaization for Environmental Promotion Representative Executive CSR Committee Fujiyama Plant Director Committee (Chairperson: Executive Officer in charge of CSR) Yamaguchi Plant Environmental Committee Joto Development Center (Chairperson: Executive Officer in charge of Environment) Minase Resear
Slide 23: Realization of Decarbonized Society
Realization of Decarbonized Society • Our medium- to long-term greenhouse gas emission reduction targets (in-house emissions) are categorized to the most ambitious target "1.5ºC" by SBTi. • We will increase the use of renewable energy in line with RE100* (joined in June 2020) for electric power usin
Slide 24: Financial Disclosures Related to Climate Change
Financial Disclosures Related to Climate Change • Announcement of supports for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD*) recommendations in October 2019 • Disclosure of responses to “Governance”, “Strategy”, “Management of Risks & Opportunities” and “Indi
Slide 25: Priority of GHG Emission Reduction Measures
Priority of GHG Emission Reduction Measures Source: Prepared by ONO based on materials from ENECHANGE Ltd. 24 /42
Slide 26: Emission Reduction Activities
Emission Reduction Activities Eliminate Eliminate ◆ “Green Sustainable ◆Leveling electricity demand (peak shift of daytime Chemistry” electricity use) Development of environment-friendly Large-capacity electricity storage system manufacturing process for drug (Yamaguchi Plant) substances • Nighttime
Slide 27: Enhancement of Human Capital
Enhancement of Human Capital 26 /42
Slide 28: Management/Global Talent Development Training
Management/Global Talent Development Training Purpose Development of the next-generation management candidates in the future Management Talents capable of taking on the Talents capable of taking on the Talents capable of taking on the Target role of the next Executive Director role of the next leade
Slide 29: Talents who can Think and Act from Global and Company-wide Perspectives
Talents who can Think and Act from Global and Company-wide Perspectives Three universally required abilities Three abilities needed to be globally competitive Basic Management English Management Principles skills Skills Conceptual Ability to Global Cross-culture Thinking skills Skills engage others
Slide 30: Open Recruitment System at ONO
Open Recruitment System at ONO To promote employees' career development and to enhance vitality and competitiveness through the exchange of Talents, we invite job offers from each department and match applicants with positions to achieve transfers. Selection [1] Minimum of 3-year experience in the c
Slide 31: Key Points on FY2022 Revision of Open Recruitment System Expansion
Key Points on FY2022 Revision of Open Recruitment System Expansion [1] Abolished "Minimum of 3-year experience in the same organization" as an application requirement More than 80% of employees can apply (up to last year, about 30% of employees) [2] Abolished job opening criteria “One person per H
Slide 32: Internal Challenge Job System
Internal Challenge Job System To be introduced from Voices of employees April 2022 • I like to try a job in a different field but am concerned about my aptitude for it. • I am not considering a transfer right now, but would like to broaden my horizons by getting to know other divisions. • I want to
Slide 33: Talent Development Program for Global Management
Talent Development Program for Global Management Fostering talents contribute to Global Management Experiences ≥ Knowledge, skills, etc. Selection Internal External Expansion Introduced in April ONO Management Open Internal Innovation Platform Global Talent talent Recruitment Challenge Development d
Slide 34: Ono Innovation Platform
Ono Innovation Platform Place of learning Field of experience Place to challenge Innovation Café Transferred to Accelerator Business contest (Know, touch, venture company program (Employee challenges and learn) (Experience in venture) (Touch and co-create) and company support) Top commitment Ono’s H
Slide 35: Innovation Cafe
Innovation Cafe Have the weapons to challenge Customer WILL Viewpoint orientation July to October, 2021 June 23, 2021 “Touch” June 7, 2021 “Know” November 29, 2021 “Know” “Experience” 211 people 235 people 194 people 69 people An opportunity to hear lectures An opportunity to hear a Lecture by Profe
Slide 36: Secondment to venture companies (V2V)
Secondment to venture companies (V2V) Have the weapons to challenge ⚫ Dig deep into WILL and go on secondment to a Leave Ono and think and matching venture company act independently in an ⚫ Experience an overwhelming amount of decision- environment without making and action, and elevate your viewpoi
Slide 37: Business Contest
Business Contest Creation of an environment where taking on challenges is rewarding HOPE Challenger 83 people Past primary screening Interim Review Board Full-time consideration of The WILL of each and 9 people Final Review Board commercialization every employee Issue awareness is the starting point
Slide 38: Opinions of OIP participants
Opinions of OIP participants Elevation of “Now I want to try to change the world.” viewpoint “It was a trigger for me to want to help somebody.” Increased “I realized that my real job is to think and do things by myself.” sense of “I was able to experience thinking desperately and making ownership a
Slide 39: Promotion of Women's Involvement
Promotion of Women's Involvement April 1, 2016, to March 31, 2021 (5 years) Goal (1) Targeting 40% employment rate for women among newly graduated employees from FY 2017 Goal not achieved 2017 2018 2019 2020 2021 Female rate 35.1% 48.8% 33.8% 40.3% 40.2% (2) Targeting a female retention rate of at l
Slide 40: Plan for Promotion of Women's Involvement
Plan for Promotion of Women's Involvement April 1, 2021, to March 31, 2023 (1) The proportions of female managers and percentage of female in candidates for manager are low. Goal: At least 15% female candidates for management • Provide opportunities to consider careers, including management, regardl
Slide 41: Promotion of Women's Involvement (Results of FY2021)
Promotion of Women's Involvement (Results of FY2021) (1) The proportions of female managers and percentage of female in candidates for manager are low. Goal: At least 15% female candidates for management 14% (as of the end of March 2022 ) ➢ Provide opportunities to consider careers, including manage
Slide 42: External ESG Evaluation
External ESG Evaluation Evaluation FY2017 FY2018 FY2019 FY2020 FY2021 Climate Climate Climate Climate Climate CDP Change:A- Change:A Change: A Change: A Change: A Water:B Water:B Water: A- Water: A- Water: A FTSE Score:2.8/5.0 Score:3.2/5.0 Score:3.4/5.0 Score:4.1/5.0 Score:4.2/5.0 MSCI Score:BBB Sc
Slide 43: ESG-related Awards
ESG-related Awards Headquarters received Special Prize, Osaka Climate Change Award in FY2021 Bronze Class which is given to the top 51 to 100 companies in the "Comprehensive Categories" of SUSTAINA ESG AWARDS in 2021. Reduce, Reuse, Recycle (3R) Promotion Council 3R Chairman's Award in FY2020 Enviro
Slide 44: Dedicated to the Fight against Disease and Pain
Dedicated to the Fight against Disease and Pain