Slides
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March 5, 2025 Sustainability Meeting
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/33 Cautionary Notes 2 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, but are not limited to: ( ⅰ ) failures in new product development ( ⅱ ) changes in general economic conditions due to reform of medical insurance system ( ⅲ ) failures in obtaining the expected results due to effects of competing products or generic drugs ( ⅳ ) infringements of the Company’s intellectual property rights by third parties ( ⅴ ) stagnation of product supply from the delay in production due to natural disasters, fires and so on ( ⅵ ) onset of new side effect of post-licensure medical product and, ( ⅶ ) currency exchange rate fluctuations and interest rate trend. Information about pharmaceutical products (including products currently in development) included in this document is not intended to constitute an advertisement of medical advice.
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/33 Agenda Promotion of Diversity（13:15-13:25） Q&A session ESG Initiatives to Promote Growth Strategies（13:25-13:45） Materiality Updates（13:00-13:15） Member of the Board of Directors, Outside Director Akiko Okuno Representative Director, Executive Vice President / Executive Director / Corporate Strategy & Planning HR Division Toshihiro Tsujinaka 3 Representative Director, President and Chief Operating Officer Toichi Takino
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/33 Materiality Updates 4
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/33 Reorganize Business Operations in the US and Europe to Accelerate Global Expansion Consolidating ONO Group's US and Europe business functions into Deciphera to realize growth toward becoming a global specialty pharmaceutical company 5 ・Development and sales functions in the ONO US ・ Development functions in the ONO UK ONO PHARMA UK LTD. London Deciphera Pharmaceuticals, LLC. Waltham, Massachusetts Main functions to be consolidated ONO PHARMA USA INC., Cambridge, MA 5/33
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/33 Materiality Updates With the acquisition of Deciphera and the establishment of the direct sales system in the US and Europe, we have revised our materiality. Incorporating the opinions of external stakeholders, we consolidated 18 materialities into 9, clarifying our focus and priorities. 6
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/33 Materiality (Growth Strategy) Vision over the medium- to long-term 1 • Collaborate with top scientists to accelerate drug discovery for changing the world, and also the speed and accuracy of establishing PoC for new drug candidates are improving, and the pipeline is enriched through licensing activities. 2 • As a specialty pharma capable of competing globally, accelerating development and business advancement worldwide. 3 • We have addressed our goal of achieving the well-being of patients and their families in cooperation with healthcare professionals, and as a result, our new drugs are spreading promptly. 4 • Contributing to solving social issues and realizing next-generation healthcare by leveraging digital technologies and our strengths. Strengthening Our Pipeline Acceleration of Global Business Advancement Maximization of Product Value Expansion of Business Domains Growth Strategy 2 3 4 1 7
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/33 Materiality(Foundation for Promoting Growth Strategies, Realization of a Sustainable Society) Vision over the medium- to long-term 5 • A secured global IT infrastructure is being implemented and corporate transformation through digital is being realized. 6 • Based on the human resource strategy for the realization of the corporate philosophy and vision, we are committed to recruiting and developing talent that contributes to business growth and to realizing an organizational culture that enhances diversity and fosters a sense of unity. Systems and measures that attract human resources have been established, and an environment is provided where all employees can work with peace of mind and safety. Vision over the medium- to long-term 7 • Under “ECO VISION 2050,” we aim to become a leading environmentally friendly company in the pharmaceutical industry, and will strive to inherit a rich global environment for future generations so that people can have a healthy and sound society. 8 • We will continue to ensure robust quality assurance and safety management systems, while stably supplying and continuously improving our products for patients. • We are implementing management practices based on the "UN Guiding Principles on Business and Human Rights, " while also identifying sustainability- related risks with our business partners and working together to realize a sustainable society. • We are providing innovative medicines for rare diseases and pediatric diseases to improve access to healthcare, and supporting the development of healthcare infrastructure in underdeveloped areas. 9 • Establishing an effective corporate governance system to achieve our sustainable growth, including the establishment of a compliance risk management system to support global 8 Corporate Transformation through Digital & IT Expansion of Human Capital Foundation for Promoting the Growth Strategy 5 6 Realization of a Sustainable Society Conservation of the Global Environment 7 Enhancement of Social Trust8 Strengthening Governance9
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/33 New Materiality 9 Under our sustainable management policy, we are committed to growth strategies, expanding key foundations, and realizing a sustainable society. By contributing to people's health, we aim to achieve sustainable growth for both society and our company. Strengthening Our Pipeline Acceleration of Global Business Advancement Maximization of Product Value Expansion of Business Domains Growth Strategy Corporate Transformation through Digital & IT Expansion of Human Capital Conservation of the Global Environment Enhancement of Social Trust Strengthening Governance Realization of a Sustainable Society Foundation for Promoting the Growth Strategy 2 3 4 5 6 7 8 9 1
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/33 Promotion of Diversity 10
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/33 Management List 11 Name Positions, Responsibilities and Significant Concurrent Positions Members of the Board of Directors (6) Internal (3) Gyo Sagara Representative Director, Chairman of the Board and Chief Executive Officer Toichi Takino Representative Director, President and Chief Operating Officer Toshihiro Tsujinaka Representative Director, Executive Vice President / Executive Director, Corporate Strategy & Planning, HR Division, EHS Promotion Outside (3) Masao Nomura Advisor, lwatani Corporation Outside Director, Keihanshin Building Co., Ltd. Akiko Okuno Professor, Faculty of Business Administration, Konan University Shusaku Choei Special Corporate Advisor, Panasonic Holdings Corporation Outside Audit & Supervisory Board Member, Nikkei Inc. Outside Director, Poppins Corporation Audit & Supervisory Board Members (4) Internal (2) Hironobu Tanisaka Full-time Audit & Supervisory Board Member Kiyoaki Idemitsu Full-time Audit & Supervisory Board Member Outside (2) Yasuo Hishiyama Partner Attorney at Law, Tanabe & Partners Outside Audit & Supervisory Board Member, Yoshimoto Pole Co., Ltd. Member or appraisal committee (Land Lease Non-Contentious Cases) at Tokyo District Court Akiko Tanabe Representative, Akiko Tanabe CPA office Outside Director, Oie Sangyo Co., Ltd. Partner of Midosuji Audit Corporation
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/33 Current Challenges 12 Approach to tackle the OPDIVO Patent Cliff Global expansion, Pipeline expansion ⇒ Accelerate global expansion through the acquisition of Deciphera Issues from the perspective of outside directors “Adapting to change” (Especially in HR policies)
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/33 What is Needed for “Change” 13 First global M&A for Ono Pharmaceutical Task differences: Technical problems ⇒ Adapt effectively Cultural differences: Social and corporate culture (people-related issues) ⇒ Understanding and Leveraging Diversity The Group's Common Values (Corporate Philosophy, etc.) Need to share/empathize
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/33 Initiatives to Improve Diversity and Enhance Engagement 14 Fairness and Transparency Establish a global HR system, promote the active participation of women and mid-career hires Expression of individuality Systems for open internal job posting & "Challenge jobs"* etc. * Exploring new opportunities by taking on roles in multiple departments Work style Respond to different work styles (expand systems) Monitor the status of diversity and readiness to change through reports and engagement survey results, employee dialogue, etc.
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/33 Next Steps 15 Promote active careers for women It is important to demonstrate from the top how to create an organization that accepts and makes the most of capable and diverse talent • The harsh current reality: (Percentage of female managers: Currently 7.3%, target for FY2026: 10% / target for FY2031: 20%) • We are making steady, consistent effort. Although there has been no rapid progress, the organization's culture is beginning to change. • More expectations for increased career hires and the globalization of our talent base as a result of acquisitions. • Need to expedite the promotion of women to executive-level positions. (To establish role models.) Human Resources Development • Efforts are underway to develop our personnel and encourage embracing challenges. (Based on employee feedback.) • We need to leverage the diverse talent we have cultivated and create role models.
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/33 ESG Initiatives to Promote Growth Strategies 16
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/33 Strengthening the management infrastructures 17 Strengthening of intangible assets: as stated in the plan of Corporate Strategy & Planning Expansion of human capital Digital & IT Corporate branding Internal management • ROE target conscious budgeting and strengthening control over profitability of investment • New cash generating activities Realizing strategic procurement • Placing cost reduction in the forefront • Reviewing outsourcing practice : Promoting shift to insourcing/discontinuation Promotion of human resource management • Optimizing personnel through personnel/recruiting rolling • Implementation of strategic resource shift External management • Cost of capital-conscious dialogue with shareholders • Stock price measures through appropriate publication of policy on shareholders returns, etc. Portfolio optimization • Integration with R&D strategy based on medium- long term sales projections • Improvement of pipeline value utilizing business viability evaluation/market impact analysis Improvement of cost of capital–conscious management capability Protection of corporate value • Strengthening of governance structure through enhanced mutual understanding within ONO Group • Promotion of sustainability Promotion of growth investment Management infrastructures to support growth strategies - Expansion of intangible assets - • Challenge toward DX • Implementation of globally standardized and flexible IT infrastructure • Developing and recruiting cross-functional and specialized talent to support growth strategies • Promotion of diversity, equity, and inclusion (DE&I) and realization of diverse work styles • Enhancement of engagement through deep understanding of the Mission • Global corporate branding • Strengthening of internal branding • Strategic acquisition of drug discovery technology and know-how • Proactive patent applications and use • Visualization of intellectual property (IP landscape)
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/33 Changes in the ratio of female managers based on the current status and promotion plan 18 [Current status] 2024.10.01 Total (male and female) Female Manager (number of persons) 714 52 Percentage of managers (%) ― 7.3 [Changes in the ratio of female managers based on the promotion plan] The goals at FY 2026 will be achieved, but the goals at FY 2031 are not expected to be achieved. We need more active promotion of development plans and recruitment, especially of personnel who can serve as role models 52 Patients 83 Patients 140 Patients 7.3% 8.7% 11.7% 14.3% 16.6% 17.8% 18.8% 19.6% 0% 5% 10% 15% 20% 25% 0 20 40 60 80 100 120 140 160 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Number of female managers Ratio of female managers（%） (Goals at the end of FY 2031) (Goals at the end of FY 2026) Current status (24.10.01)
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/33 19 GROW This training helps female colleagues achieve continuous self growth. Internal Mentoring Program This program encourages female employees to take on the challenge of becoming a manager, enhances their viewpoints and perspectives. Development plan (Including: OJT/OFF-JT according to the promotion plan) Culture building: Unconscious bias training, etc. HR-lead Department/HRBP Lead Interacting with other company employees In this program, female employees gain stimulation and awareness through interactions with female managers and employees of other companies. Promotion to management Learning, mindset and growth Roadmap for recruitment, development, and promotion of female managers
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/33 Human resource strategy to expand human capital 20 Specialized human resources Cross-Sectional HumanResources Acceleration of Global Business Advancement Expansion of Business Domains Maximization of Product Value Strengthening Our Pipeline
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/33 [Reference] Examples of development of specialized human resources in each division 21 Headquarters Human Resources Requirements Training content Corporate Strategy & Planning After M & A, deal with consolidated financial statements and PMI in the Finance area Human resources capable of promoting We will work with FA to develop an integrated accounting, tax and finance Supervise DD (OJT) Discovery & Research He has extensive knowledge and experience in drug discovery in the area of oncology. Collaboration with academia and CROs for drug discovery projects in Japan and overseas Human resources capable of promoting Pharmacologist (OJT) Leadership training (Off-JT) Clinical Development BM analysis planconsistent with drug profile and development strategy Human resources who can draw up proposals, globallyand execute/instruct Clinical BM Lead (Japanese/overseas studies, Global Project (OJT) CTD/CSR Joint Learning, Basic/Clinical Participation in academic conferences (off- JT) CMC & Production Global Understand various regulatory requirements required in CMC development plan, Draw up plans for the investigational drug substance supply, quality design, and establishment of the production system; Human resources capable of executing Global knowledgeable and regulatory based on GMP requirements Human resources capable of performing outsourcing management Align with FDA expectations based on review trends and conventions that are not explicitly stated Human resources capable of preparing NDA application materials Leader of a group working group to extract NDA specific requirements, etc. (OJT) Dealing with inquiries from the US NDA of Velexbru, Leader of application related actions such as change application (OJT) GSIP(Off-JT)
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/33 Results of Survey on Specialized Human Resources (Overall Summary) 22 February 2024 February 2025 Existing requireAlready hired Action ① Maximize product value ② Reinforcement of pipeline and Acceleration of global development ③ Realization of direct sales in Europe and the US ④ Expansion of business domains ⑤ Common Training candidates 272 Required quantity 64 (+5) 81 (-64) 289 (+62) 414 (-41) *Joined in and after FY 2022 127 119 11 1237 102 275 336 245 137 0 100 200 300 400 500 600 700 800 706 subjects695 subjects required to be adopted No development candidates have been found. Number of career recruitment planned Existing + already hired Human resources who already meet the requirementsas specialist human resources training candidates Approximately 1.5 employees /position selected ■Promoted career recruitment and development to graduate the required number of 706 (as of 25/2)
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/33 Progress of specialized human resources by the end of FY 2026 (forecast) 23 As shown in the left figure, by FY 2026, Specialized human resources exceeding the required number (706) Expected to be secured 289 289 289 64 64 64 40 81 127 414 0 100 200 300 400 500 600 700 800 900 March 2025 March 2026 March 2027 necessary for development (706 people) Estimated progress (cumulative value) 353 520 848 Existing Already hired Require Training candidates
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/33 Engagement Survey Results (FY 2023) 24 Survey period Nov. 13 - Nov. 30, 2023 Scope 3,637 employees across ONO Group Response rate 95.6% (FY2022: 92.9%) • Engagement is at a high level compared to benchmarks of all domestic industries while increasing the response rate. (Slightly below the benchmark of global life sciences) • The engagement score increased by one point compared to last year. Points *Benchmarks are green/red for ≥ +5/-5. 3. I am willing to put in extra effort to help this company succeed. 5. I am proud to work at this company. 1. I would recommend this company as a great place to work. 6. Overall, how satisfied are you with this company at the present time? 2. Even if I received a comparable offer from another company, I would still choose to stay at this company. 4.I look forward to coming to work. Engagement (ONO Group overall) By question Neutral% Negative%Positive% Engagement Total (average of 6 questions) Vs. Global life science Vs. All Industries Japan Benchmark comparison for positive% 0% vs. FY2022
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/33 Engagement and Mission Statement 25 OPJP OPUS OPUK OPTW OPKR 90% 83% 90% 94% 89% Percentage of affirmative responses to “I sympathize with Mission Statement of the company” in each country 5 most positive responses I sympathize with Mission Statement of the company The management encourages the employees to escalate important information to the supervisors even if it is bad news. My direct supervisor treats me with respect and dignity. I myself want to work on activities to realize a sustainable society. I clearly understand how my work helps the achievement of the goals of the company.
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/33 ONO’s Mission Statement 26 Corporate Philosophy Dedicated to the Fight against Disease and Pain Our Vision Be Passionate Challengers 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, together with patients, their families, and healthcare providers. Our Value Ono aims to be a world-changing team What we are trying to achieve is to meet a challenge that nobody has ever successfully overcome before. It is therefore vital that we bring together our greatest wisdom, heart, aspirations and power as a united team. The greater the challenge, the more passionately Ono will rise to meet it We will inevitably come up against brick walls when we are facing unprecedented challenges. When we encounter such obstacles, we should unhesitatingly rise to confront them and unflinchingly persevere in applying our ingenuity to overcome them. Ono acts with dignity and pride We should never lose the sense of dignity and pride we feel as people working in the pharmaceutical industry. We should be the bringers of hope for all those around the world who are waiting for us to deliver solutions.
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/33 What is required to accomplish our mission 27 There are things that ONO Group has valued, and there are things that Deciphera has valued. By learning about and connecting with each other’s values, we can achieve mutual understanding. Corporate Philosophy Dedicated to the Fight against Disease and Pain One Mission, Inspired by Patients: Defeat Cancer. 相互理解 Our commitment to patients and our work, are built on a foundational set of values, PATHS Patients Accountability Transparency Honesty and Integrity Stewardship Our Vision Our values Our Values Be Passionate Challengers Mutual understanding ONO Group Deciphera Ono aims to be a world-changing team The greater the challenge, the more passionately Ono will rise to meet it Ono acts with dignity and pride
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/33 Measures to disseminate Mission Statement 28 Enhancement of communication Encouragement of practical appllication Education and training Effectively communicate the Mission Statement to all employees Town hall meeting Deepen mutual understanding through daily jobs as well as integration-related activities to overcome conflicts Embodiment of Mission Statement Provide education and training programs to deepen understanding of Mission Statement Mission Statement training Implementation of measures at each workplace Implementation of measures by HR Implementation of measures from the top
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/33 Lastly... 29 Let’s make the ONO Mission Statement our common language and use it to facilitate communication across countries, regions, and divisions, deepening mutual understanding and foster a sense of unity.
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/33 What is ONO Sustainability? 30 We contribute to the sustainable development of society through our business. [Policy for the next 100 years] In addition to contributing to people's health through our core business, we will continue to take on the challenge of realizing a sustainable society under the policies of "preserving a rich global environment for the next generation," "realizing a society where people can play active roles," and "establishing highly transparent and robust management."
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/33 External evaluation of ESG in FY 2024 Rating Agency Evaluation Content Number of Selections Dow Jones Sustainability Index DJSI World Index 5 consecutive years DJSI Asia Pacific Index 5 consecutive years MSCI MSCI NIHONKABU ESG Select Leaders Index Selected for operation start in 2024 MSCI JAPAN ESG Select Leaders Index 6 consecutive years FTSE Russell FTSE Blossom Japan Index 7 consecutive years FTSE Blossom Japan Sector Relative Index 3 consecutive years FTSE4Good Index Series 7 consecutive years S&P/JPX S&P/JPX Carbon Efficient Index 7 consecutive years Ministry of Economy, Trade and Industry and Tokyo Stock Exchange Health & Productivity Stock Selection 2024 Second time in four years since 2020 Health & Productivity Management Outstanding Organization – White 500 (Large Enterprise Category) 6 consecutive years Pharma Sector 31
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/33 Initiatives on Biodiversity Minimizing the negative impact on the nature, contribute to the realization of Nature Positive* by 2030 In August 2024, disclosure will be in line with the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD) Assess nature-related dependencies and impacts and identify risks and opportunities Activities related to biodiversity conservation: Wild bird protection at Fujiyama Plant Observing wild birds on the plant grounds (four times a year since 2017, in collaboration with the Wild Bird Society of Japan) green belt A first for a pharmaceutical company Artificial stream Common buzzard (Accipitridae) observed in December 2024 Development of green space around the plant (3.6 hectares) (construction of an artificial stream and green belt of broadleaf and coniferous trees) 32
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/33 Enhancing Corporate Value Through Sustainability Corporate growth Governance Our company aims to enhance corporate value by not only achieving business growth but also sincerely responding to societal demands. Individual Employee Activities Requests from society Sustainable growth Environment Social Contribution Activity Product value Maximize Drug creation Solving social and environmental issues 33
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Dedicated to the Fight against Disease and Pain