Message from the Chairman

Nippon Shinyaku is currently strengthening our research and development capabilities and accelerating global expansion based on our 7th Five-Year Medium-Term Management Plan. To create future growth, it is essential not only to build up short-term results, but also to establish medium- to long-term competitive advantages while being conscious of capital e_ciency. Consequently, the Board of Directors places great importance on making more accurate decisions by basing them on a comprehensive view of strategies and risks while taking ROIC and the cost of capital into account.

The Board of Directors is expected to ful_ll an oversight function that evaluates the progress of strategy execution while also supporting appropriate course corrections to adapt to the changing environment. With regard to R&D investments and growth areas such as our pipeline, this oversight is re_ected in the prioritization of investments and decision-making on whether to continue or revise them, based on business value evaluations. In terms of critical risks such as quality, compliance and information security, we are working to enhance our oversight function through continuous veri_cations and modi_cations, with an emphasis on prevention and early response. These activities form the foundation for creating sustainable social value, while also providing a strong base for the Company’s sustainability management.

Each of our Outside Board Directors provides us with constructive feedback rooted in their expertise and independence, forming a decision-making foundation supported by diverse viewpoints. Furthermore, the restricted stock compensation plan for Inside Board Directors that we introduced in FY2024 has further strengthened value sharing with shareholders, promoting management decisions and oversight based on a long-term perspective.

My responsibility as Chairman of the Board of Directors is to ensure that the Board continues to be a forum that truly contributes to enhancing corporate value. To ful_ll this responsibility, I encourage in-depth discussions on material issues and dialogue based on diverse viewpoints, which will lead to rational and disciplined decision-making. Going forward, we will continue to deliver highly e_ective corporate governance to enhance corporate value over the medium to long term and establish the trust of all our stakeholders.