KPI and Objectives

• Approved and launched in five regions: Japan, Americas^*2, China, EMEA^*3 and EAGS^*4

• Contributed to approx. 23,000 people a year globally and generated social impact in the U.S. at approx. 53 billion yen

• Approved for an intravenous infusion maintenance treatment in the U.S.

• Completed submission of an application for a subcutaneous formulations maintenance treatment in the U.S.

• Early realization of approval and launch in all five regions^*5

• Contribute to approx. 35,000 people living with AD a year globally and generate social impact of approx. 80 billion yen in the U.S.^*6

• Approved for intravenous infusion maintenance and subcutaneous formulations

• Collaborate with partners to quickly realize the use and dissemination of blood-based biomarkers as the definitive diagnostic tool for AD

• Expand access to LEQEMBI® to contribute to approx. 900,000 people living with AD a year globally. Generate social impact of approx. 1.8 trillion yen in the U.S.

• Develop next-generation dementia treatments following LEQEMBI®, initiate late-stage clinical trials, and submit for multiple projects including the anti-MTBR tau antibody E2814^*7

• Provide new solutions that contribute to health and prevention of disease, supporting the daily lives of approx. 10 million people a year globally affected by the disease in collaboration with other industries

• Risk that LEQEMBI®’s market penetration would not be achieved as expected due to limitation of healthcare system infrastructure and increased competition in the market

• Risk of not achieving expected profits due to discontinuation or delay in development of nextgeneration dementia treatments

• Risk of delays or inefficiencies in R&D, manufacturing, and commercialization activities due to disagreements with partners

• Contributed to approx. 80,000 people a year globally

• Global sales revenue of 328.5 billion yen

• Submit for approval of new indications for KEYTRUDA®^*1 and other treatment combination therapies

• Contribute to approx. 90,000 people a year globally and aim for annual product sales at 300 billion yen level, in addition to the upside expected from new indications^*2

• Early submission for MORAb-202 and E7386^*3

• Early clinical introduction of new projects based on efficient drug discovery approach, utilizing Deep Human Biology Learning (DHBL), to submit for early approval

• Acquire products or co-develop and co-commercialize with partner companies to enhance pipeline and maximize its value

Cure of refractory cancers by creating innovative treatments, expansion of access, and realization of prevention based on a predictive model of cancer onset

• Risk of not achieving the expected profits due to discontinuation or delay of the development of new indications for Lenvima® or the development plan of new projects

• Risk of delays or inefficiencies in R&D, manufacturing, and commercialization activities due to disagreements with partners

• Provided a cumulative 2.52 billion DEC tablets free of charge, generating a social impact of approx. 478 billion yen

• Expanded and strengthened support for elimination activities through provision of DEC tablets free of charge, holistic initiatives and completed mass drug administration (MDA) in 15 countries

• Initiated clinical study of a new drug candidate

• Expand and enhance support for elimination activities in India, the world’s largest LF-endemic country, through the free provision of DEC tablets and holistic efforts. Complete MDA in 19 other countries^*1,2

• Generate approx. 520 billion yen (4.5 billion USD) / year^*3 in social impact by contributing to approx. 29 million people through the provision of DEC tablets

• Complete regulatory submission for E1224 in Sudan. Conduct epidemiological surveys to establish journey for patients with mycetoma, a disease with immature understanding

• Initiate clinical studies of a new drug candidate

• Complete MDA in a total of 30 countries^*1,4 including India, through free provision of a total of 3.9 billion DEC tablets

• Create approx. 560 billion yen / year^*3,4 in social impact by contributing to approx. 31 million people with the DEC tablets

• Facilitate cross-sectoral collaboration to establish a journey for patients with mycetoma

• Obtain approval of E1224 in Sudan and establish a sustainable delivery method

• Contribute to people living in endemic countries other than Sudan by providing E1224

• Submit for new treatments and achieve clinical proof of concept (POC) of one other drug candidate

Contribute to the eradication of diseases and reduction of health disparities through the creation of new treatments and expanded access

• Risk of delays in elimination activities due to the deprioritization of LF countermeasures in endemic countries

• Risk of delays in elimination activities, drug development, review processes due to new infectious disease pandemics or conflicts

• Risk that duration of clinical trials would be longer than planned due to inadequacies in the clinical trial environment characteristic of neglected tropical diseases and malaria

• Penetration of the corporate concept hhc
  95% penetration of corporate concept

• Increased employee engagement
  Percentage of employees who are highly engaged to the company in the Global Engagement Survey: 85%

• Enhancement of women’s participation to incorporate diversity
  Ratio of female managers in Japan: 13.6%

• Employee Impact
  Human resource investment efficiency: 82%

• Penetration of the corporate concept hhc
  100% penetration of corporate concept

• Increased employee engagement
  Percentage of employees who are highly engaged to the company in the Global Engagement Survey: More than 90%

• Enhancement of women’s participation to incorporate diversity
  Ratio of female managers in Japan: 15%

• Employee Impact
  Human resource investment efficiency: 82%

• Penetration of the corporate concept hhc
  100% penetration of corporate concept

• Increased employee engagement
  Percentage of employees who are highly engaged to the company in the Global Engagement Survey: More than 90%

• Enhancement of women’s participation to incorporate diversity
  Ratio of female managers in Japan: 30%

• Employee Impact
  Human resource investment efficiency: 87%

Enhancement of corporate value through solutions and innovation brought that maximize the strengths and characteristics of diverse human capitals

• Risk of difficulty in succession for important global positions

• Risk of difficulty in securing and developing human resources that match company management directions

• Optimal capital structure and financial soundness
  Ratio of equity attributable to owners of the parent: 60.7%, Net DER: -0.12, Credit rating^*1: AA-

• Achieve both stable dividends and investment for growth
  Investment in growth of LEQEMBI® and maintain dividend of 160 yen

• Expansion of intrinsic corporate value (social impact + financial value) by expansion of contribution through LEQEMBI® and DEC tablets
  Impact on equity^*2: 0.65 times level

• Pursue an optimal capital structure while ensuring financial soundness
  Ratio of equity attributable to owners of the parent: 60% level, Net DER: - 0.3 – +0.3, Credit rating: single A level

• Achieve both stable dividends and investment for growth
  In principle, pay dividends within the range of free cash flow on a multi-year level and aim to maintain a dividend of 160 yen

• Maximization of intrinsic corporate value while the company is in rapid growth
  ROE: 25% level, DOE: 15% level
  Impact on equity^*2: 2 times level

• Increase financial robustness and secure growth investment capacity
  • Equity attributable to owners of the parent: more than 1 trillion yen, ratio of equity attributable to owners of the parent: 70% level, Net DER: - 0.3 – +0.3

• Risk of not earning the expected revenue from LEQEMBI® and Lenvima®

• Risk of not earning the expected revenue due to discontinuation or delay of development plans for the subsequent products

• Risk of impairment of goodwill and intangible assets acquired through acquisitions and the introduction of products and development