Shionogi & Co (4507) Sustainability presentation summary

Transformation into a global company toward 2030 vision

• Aims to become a premier partner in healthcare by leveraging unique drug discovery strengths and building innovation platforms for future healthcare needs.

• Implements a phased transformation strategy, evolving into a Healthcare as a Service (HaaS) company by 2030.

• Focuses on globalizing operations, interfunctional coordination, and efficient management with an emphasis on human resource development and transparent governance.

• Strengthens business through growth investments, M&A, and integration of acquired pharmaceutical divisions to enhance in-house drug discovery and global supply chain.

Sustainable growth centered on in-house drug discovery

• Pursues global provision of innovative medicines through strong in-house research and development capabilities.

• Prioritizes small molecule drug discovery to address unmet medical needs, offering flexibility, cost efficiency, and improved patient adherence.

• Enhances proprietary pipeline via integration with JT, leveraging advanced platforms, AI, and quantum computing for rapid evaluation and compound profiling.

• Applies lessons from past M&A to ensure effective post-merger integration, fostering shared values and seamless R&D collaboration.

• Expands project teams and subcommittees to support integration, manufacturing efficiency, and communication across newly acquired entities.

Corporate governance

• Governance is positioned as a foundation for sustainable corporate value, emphasizing board diversity, transparency, and swift decision-making.

• Transitioning to a company with an audit and supervisory committee in June 2025 to enhance authority delegation, early problem detection, and proposal-oriented audits.

• Governance system features strong oversight by outside directors, advisory committees, and a robust internal control framework.

• Advisory committees focus on board expertise, succession planning, compensation structure, and performance evaluation.

• Board effectiveness is improved through advance briefings, study meetings, open opinion exchanges, and regular analysis and evaluation.

• Board deliberations address key strategic issues such as headquarters relocation, major M&A, and responses to administrative guidance.

• Governance reforms include increasing outside directors, appointing female and foreign directors, and enhancing diversity and transparency.