Slide 1: ESG Briefing: Towards Enhancing Corporate Value
ESG Briefing ~ Towards Enhancing Corporate Value ~ March 22, 2021 /41
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 Philosophy and Sustainability 2. Identification and Progress of Materiality 2/41
Slide 4: Corporate Philosophy
Corporate Philosophy Our Vision is to strive with the utmost effort and strong determination to meet the challenge of combining our individual competencies to deliver new, innovative drugs to patients. We will continue being the most passionate champion in the fight against disease and pain, togethe
Slide 5: For Growth of Our Company
For Growth of Our Company 4/41
Slide 6: Identification of Materiality
Identification of Materiality Materiality identification process STEP.1 STEP.2 STEP.3 STEP.4 Identify the Issues Analyze Materiality Verify Validation Review • A materiality was analysed in FY 2018 • Importance of the materiality is reviewed annually • Targets and progress disclosed by theme • Mater
Slide 7: Progress of Materiality
Progress of Materiality Process for identification of materiality STEP.1 STEP.2 STEP.3 STEP.4 Identify the Issues Analyze Materiality Verify Validation Review ■ Creation of innovative drugs ■ Response to climate change ■ Promotion of human resource development ■ Strengthening of governance toward gl
Slide 8: Creation of Innovative Drugs
Creation of Innovative Drugs 7/41
Slide 9: Expansion of the Development Pipeline - Increased Speed and Success Rate
Expansion of the Development Pipeline- Increased Speed and Success Rate Changes in the number of clinical studies Combination (By Phase) with Opdivo 110 ONO-4578 EP 4 antagonist 99 101 Anti-CD47 ONO-7913 Number of studies 94 antibody 43 71 45 45 42 Major compound 59 in Phase 1 study 31 42 31 FXIa 24
Slide 10: Number of Applications/Approvals (Japan)
Number of Applications/Approvals (Japan) Japan News commentary Get good news for the pharmaceutical industry Ranking of drug approvals in Japan in 2020: Ono Pharmaceutical is the top with 11 approvals Number of applications Number of approvals 15 15 12 12 10 Planned Planned 2 10 9 10 9 4 9 7 1 7 2 2
Slide 11: Number of Applications/Approvals (Korea/Taiwan)
Number of Applications/Approvals (Korea/Taiwan) Korea/Taiwan Number of applications Number of approvals 25 25 Planned 20 Planned 20 20 18 17 15 14 10 15 12 7 10 5 10 10 10 7 5 8 6 6 5 4 3 4 4 5 9 10 5 10 3 1 2 7 1 7 1 2 8 2 2 4 2 0 3 3 0 1 1 2 2 0 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 20
Slide 12: Strengthening of Governance
Strengthening of Governance 11/41
Slide 13: Efforts to Strengthen Governance
Efforts to Strengthen Governance Three of 8 Board Directors were Outside Board Directors. Selection of female Board Two women are included in 12 Board Directors/Auditors. Directors 2020 Person having management experience joined. Increase in number of The number of Board Directors increased from 7 t
Slide 14: Outside Board Directors
Outside Board Directors Three out of 8 Board Directors are Outside Board Directors with the aim of strengthening the supervising function of the Board of Directors, maintaining and improving management transparency and the accuracy of business execution. Jun Kurihara Masao Nomura Akiko Okuno Researc
Slide 15: Executive Appointment and Executive Compensation Meetings
Executive Appointment and 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 Dir
Slide 16: Board Director Compensation
Board Director Compensation Board Director (excluding Outside Board Directors) Fixed remuneration Set at an appropriate level by referencing executive remuneration databases and accounting for business size of the (About 70%*) company, position, etc. ＋ Sound incentives aimed at ensuring sustainable
Slide 17: Evaluation of Effectiveness in Board of Directors
Evaluation of Effectiveness in Board of Directors Effectiveness in Board of Directors is evaluated every year by all of the Board Directors and Auditors Self-evaluation is conducted through questionnaires and interviews to improve the board Contributing to improvement of effectiveness of the Board o
Slide 18: Reduction in Cross-Shareholdings
Reduction in Cross-Shareholdings About 30% reduction planned for cross-shareholdings from the level at end of March 2018 (111 issues totalling 167.1 billion yen) over the next three years starting from November 2018, aiming to improve capital efficiency and keep pace with changing environment surrou
Slide 19: Issues Going Forward
Issues Going Forward Roles and functions of the Board of Directors ・Deepening of discussions focusing on globalization ⇒ Careful and bold management decisions Role of Outside Board Directors ・Role expansion in governance ⇒ Further involvement in the executive personnel and remuneration decision proc
Slide 20: Human Resource Development
Human Resource Development 19/41
Slide 21: Human Resource Development (Training Programs for All levels)
Human Resource Development (Training Programs for All levels) Voluntary Self- Position Training by hierarchy participatory development Other training Diversity management training Career planning training (On-site training at medical institutions etc.) Patient Perspectives Awareness Program Workshop
Slide 22: Human Resource Development (Training Programs for Future Top Management Candidates)
Human Resource Development (Training Programs for Future Top Management Candidates) Training for [Training for selected employees] Position selected Objectives: Fostering awareness and autonomy as management employees Core training curriculum: set up in different tiers Executive Training for Execu
Slide 23: 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 24: Promotion of Women's Involvement
Promotion of Women's Involvement Planned duration April 1, 2016, to March 31, 2021 (5 years) Goal Goal not achieved (1) Targeting 40% employment rate for women among newly graduated employees from FY 2017 2017 2018 2019 2020 2021 (expected) Female rate 35.1% 48.8% 33.8% 40.3% 40.2% (2) Targeting a f
Slide 25: Promotion of Women's Involvement (Issues and Measures)
Promotion of Women's Involvement (Issues and Measures) (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, regardless of gender, so th
Slide 26: Response to Climate Change
Response to Climate Change 25/41
Slide 27: 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 28: Organization for Environmental Promotion
Organization for Environmental Promotion Representative Management CSR Committee Fujiyama Plant Director Meeting (Chairperson: Executive Officer in charge of CSR) Yamaguchi Plant Environmental Committee Joto Development Center (Chairperson: Executive Officer in charge of Environment) Minase Research
Slide 29: Environmental Objectives
Environmental Objectives • Reduces In-house CO2 emissions based on our targets in line with "<1.5ºC" (approved by SBTi*). • Joined RE100, an international initiative aiming to raise the proportion of renewable energy used in business activities to 100%, in June 2020. *For more information on “Scienc
Slide 30: Emission Reduction Activities
Emission Reduction Activities ◆ Incorporate renewable energy ◆ Levelling electricity demand (peak shift of daytime electricity use) Photovoltaic system (Minase Research Institute) Large-capacity electricity storage system (Yamaguchi Plant) • Nighttime heat storage system • Cogeneration system Green
Slide 31: Reducing Environmental Impact of Products
Reducing Environmental Impact of Products ◆ Efforts to reduce plastic usage We succeeded in changing the tray (partition) of the injection packaging box from plastic to paper. This will result in an annual plastic usage reduction (expected) of 4,800 kg and volume reduction (48% per box). 30/41
Slide 32: Disclosure Based on TCFD
Disclosure Based on TCFD • Disclosure of responses to “Governance”, “Strategy”, “Management of Risks and Opportunities”, and “Indicators and Targets” proposed by TCFD • Promotion of Integration of risks into Enterprise Risk Management and of annual updating •For more information on Task Force on Cli
Slide 33: Promotion of CSR procurement
Promotion of CSR procurement 32/41
Slide 34: Strengthening the Supply Chain
Strengthening the Supply Chain We utilize the CSR evaluation system of EcoVadis in order to objectively and continuously grasp the CSR status of important suppliers in the supply chain. Business Companies partners <Background of use of EcoVadis system> • Efficient information sharing among companies
Slide 35: Supply Chain Management by Promoting CSR Procurement
Supply Chain Management by Promoting CSR Procurement Comparing the FY 2020 score with the FY 2019 score (1) Mean total score increased by 2.7 points (2) Supply chain company scores ranged from +12 to -2 (1 company: down, 3 companies: same score) Note) Since the evaluation for FY 2020 is currently on
Slide 36: Improvement of Access to Healthcare
Improvement of Access to Healthcare 35/41
Slide 37: Efforts to Improve Medical Access
Efforts to Improve Medical Access Rare diseases Product name Indication Status MEKTOVI Tablet Unresectable melanoma with BRAF mutation Approved BRAFTOVI Capsule Unresectable melanoma with BRAF mutation Approved Primary central nervous system lymphoma Approved VELEXBRU Tablet Primary macroglobulinemi
Slide 38: Improving Medical Access
Improving Medical Access Participation in the Global Health Innovative Tecnology Fund in 2018 ONO SWITCH Project (starting from 2018) Activities (focus on Asia, an important market) Cambodia : Healthcare professional support and education Bhutan : Donation of DPT vaccines and hepatitis B vaccines to
Slide 39: ONO SWITCH Project (from 2018)
ONO SWITCH Project (from 2018) SWITCH: Save the World by our work style ImprovemenT and CHange Certain percentage of the expected reduction An effort to make donations to NPOs/NGOs related to medical Paid separately by company care using the money saved through the reduction of overtime work To soci
Slide 40: External ESG Evaluation
External ESG Evaluation Evaluation FY2017 FY2018 FY2019 FY2020 Climate Change:A- Climate Change:A Climate Change: A Climate Change: A CDP Water:B Water:B 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 MSCI Score:BBB Score:BBB Score:A Score:A World Index DJSI Score:1
Slide 41: ESG-related Awards
ESG-related Awards Minase Research Institute received “Osaka Governor's Award” of the Osaka Stop Global Warming Award in FY2020 Reduce, Reuse, Recycle (3R) Promotion Council 3R Chairman's Award in FY2020 Gold Class which is given to the top 20 companies in the "Comprehensive Categories" of SUSTAINA
Slide 42: Ono Pharmaceutical Co., Ltd.
ono ONO PHARMACEUTICAL CO.,LTD. Dedicated to Man’s Fight against Disease and Pain