Otsuka Group CSR Report 2012
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Otsuka Group CSR Report 2012 Otsuka-people creating new products for better health worldwide OTSUKA GROUP Editorial Policy CSR REPORT 2012 On December 15, 2010, Otsuka Holdings Co., Ltd. became a public company by listing its shares on the First Section of the Tokyo Stock Exchange. In keeping with its corporate com- mitment to “Otsuka-people creating new products for better health worldwide,” the Otsuka Group endeavors to leverage its unique assets and skills to have a positive impact on health worldwide through its business. We published our fi rst environmental and social report in 2010, in order to provide diverse stakeholders with information about the many initiatives that the Group pursues through its business. Starting in 2011, we expanded the scope of the report to broadly inform stakehold- ers about the Group’s corporate social responsibility (CSR) efforts. In this report, we focused on providing stakeholders with a more comprehensive picture of initiatives that are being pursued throughout the Otsuka Group with several common themes. We have gathered information from Group companies around the world to report on social ini- tiatives, and focused on securing the accuracy and continuity of environmental performance data. Furthermore, the knowledge that was gained from assembling this report will be lever- aged to expand future CSR initiatives of the Otsuka Group. Scope of report This report focuses on Otsuka Holdings. The social initiatives described in this report encompass the global activities of Group companies in and outside Japan. Environmental data applies to the following 11 Group companies in Japan: Otsuka Pharmaceutical Co., Ltd. JIMRO Co., Ltd. Otsuka Pharmaceutical Factory, Inc. EN Otsuka Pharmaceutical Co., Ltd. TAIHO PHARMACEUTICAL CO., LTD. Otsuka Techno Corporation Otsuka Warehouse Co., Ltd. Otsuka Packaging Industries Co., Ltd. Otsuka Chemical Co., Ltd. Otsuka Foods Co., Ltd. Otsuka Electronics Co., Ltd. Period covered The data presented in this report are actual fi gures from April 1, 2011 to March 31, 2012. The activities reported on include some conducted more recently. Publication schedule The next report is scheduled for publication in autumn 2013. Guidelines referenced This report was compiled with reference to the Environmental Report Guidelines 2007 Edition and the Environmental Accounting Guidelines 2005 Edition issued by Japan’s Ministry of the Environment, and the GRI Sustainability Reporting Guidelines 3rd Edition. Feedback on the Otsuka Group CSR Report We welcome your feedback by email. Please do not hesitate to provide us with your feedback or impressions of this report, including requests about the initiatives of the Otsuka Group. Your input is valuable and will help us shape future reports and initiatives. Email [email protected] 01 OTSUKA GROUP CSR REPORT 2012 Corporate Profi le Contents About the Otsuka Group As of March 31, 2012 Company name: Otsuka Holdings Co., Ltd. About the Otsuka Group …………… 02 Established: July 8, 2008 Corporate Profi le …………………………………… 02 Capital: JPY 81.69 billion Otsuka Group across the Globe ………… 03 Head Offi ce: 2-9 Kanda-Tsukasamachi, Business Overview of the Otsuka Group …………………………………… 05 Chiyoda-ku Tokyo 101-0048, Japan the President Message from Tokyo Headquarters: Shinagawa Grand Central Tower, 2-16-4 Konan, Minato-ku, Tokyo 108-8241, Japan Message from the President …… 07 Representative: Tatsuo Higuchi, President and Representative Director, CEO Corporate Philosophy …………………………… 10 Employees: 65 (Consolidated: 24,595) Scope of consolidation: 67 consolidated subsidiaries and 13 equity method affi liates Highlight 1 Business description: Control, management, and other operational aspects of Tackling Unmet business activities related to holding the shares of companies Medical Needs …………………………………… 11 that operate in the fi elds of pharmaceuticals, nutraceuticals, Developing New Pharmaceuticals consumer products, and other businesses. Highlight Highlight 2 Soylution-From Japan to the World …………………………………………… Consolidated Net Sales Consolidated Operating Income 13 A New Solution for Environmental Issues and Operating income Better Health Worldwide (Unit: ¥ billion) Net sales (Unit: ¥ billion) (%) Operating margin 1,200 1,127.6 1,154.6 160 16 1,084.3 148.7 140 15 Highlight 3 1,000 928.5 955.9 126.3 118.3 120 14 Community and Social Report 800 98.5 100 91.5 13 Global Initiatives ………………………………… 15 600 80 12.9 12 The World's Only Museum Displaying Masterpieces 12.7 60 11 on Ceramic Panels-Otsuka Museum of Art 400 11.2 40 10 200 20 9.6 9 …………………………………… 9.1 Social Report 19 0 0 8 FY2007 FY2008 FY2009 FY2010 FY2011 FY2007 FY2008 FY2009 FY2010 FY2011 Managing and Improving Quality ………… 21 Environmental Report Environmental Social Initiatives for Better Health ………… 23 Consolidated Ordinary Income Research and Development Expenses Ordinary income R&D expenses Social Contribution Activities— (Unit: ¥ billion) (%) (Unit: ¥ billion) (%) Operating margin Operating margin Otsuka Group and Local Communities ……… 25 160 152.1 16 180 17 164.7 159.2 160 151.8 16 Building Vital Workplaces 140 128.4 15 124.1 for Employees ………………………………………… 31 140 135.9 15 120 109.1 14 120 14 Development of Human Capital …………… 100 96.1 13 14.6 33 101.8 14.0 13.4 13.2 100 14.2 13.8 13 80 12 Employee Health ……………………………………… 34 80 12 60 11 11.4 60 11 40 10 40 11.0 10 10.1 10.1 ………………… Management 20 9 20 9 Environmental Report 35 0 8 0 8 Environmental Performance Data ……… 37 FY2007 FY2008 FY2009 FY2010 FY2011 FY2007 FY2008 FY2009 FY2010 FY2011 Note: Data marked “FY2007” is from the consolidated earnings of Otsuka Pharmaceutical. Energy and Resource Conservation …… 39 Zero-Emissions Initiatives ……………………… 42 Consolidated Net Sales Consolidated Net Sales by Geographical Segment (FY2011) by Business Segment (FY2011) Coexistence with Nature ……………………… 43 Sales to external customers Sales to external customers Performance Data Environmental Clean-Up Activities ………………………………… 45 Others: 73.1 Consumer Products: Other: Pharmaceuticals: Japan: 48.0 782.2 166.2 574.9 6.3% Management ……………………………………… 47 14.4% 4.2% Corporate Governance …………………………… 49 21.8% Risk Management …………………………………… 50 49.8% Compliance ……………………………………………… 51 35.8% 67.7% Third-Party Opinion / Editorial Postscript ………………………………… 52 North America: 413.5 Nutraceuticals: 251.3 Environmental Performance Data ………… 53 (Unit: ¥ billion) (Unit: ¥ billion) OTSUKA GROUP CSR REPORT 2012 02 Otsuka Group across the Globe The Otsuka Group’s global businesses create a variety of products that help to maintain and enhance daily health and aid in the diagnosis and treatment of illness. As of March 31, 2012, net sales from markets outside Japan accounted for 50% of the Group’s consolidated net sales. There are approximately 25,000 employees in the consolidated Group worldwide, and 44% of these are outside Japan. Otsuka Group employees are working every day around the world, for the universal betterment of human health. Asia and Europe Middle East Japan 1,402 6,803 13,808 employees employees employees 20 26 19 companies companies companies Belgium China Japan Nutrition & Sante Benelux SA Otsuka (China) Investment Co., Ltd. Otsuka Holdings Co., Ltd. Zhejiang Otsuka Pharmaceutical Co., Ltd. Otsuka Pharmaceutical Co., Ltd. France Sichuan Otsuka Pharmaceutical Co., Ltd. Otsuka Pharmaceutical Factory, Inc. Otsuka Pharmaceutical France SAS Tianjin Otsuka Beverage Co., Ltd. TAIHO PHARMACEUTICAL CO., LTD. Euriso-Top S.A.S Suzhou Otsuka Pharmaceutical Co., Ltd. Otsuka Warehouse Co., Ltd. Nardobel SAS Shanghai Otsuka Foods Co., Ltd. Otsuka Chemical Co., Ltd. Nutrition & Sante SAS Chongqing Otsuka Huayi Chemical Co., Ltd. Otsuka Medical Devices Co., Ltd. Nutrition & Nature SAS China Otsuka Pharmaceutical Co., Ltd.* EN Otsuka Pharmaceutical Co., Ltd. Laboratoires Dietetique et Sante SAS Guangdong Otsuka Pharmaceutical Co., Ltd.* Otsuka Electronics Co., Ltd. ALMA S.A.* Micro Port Medical (Shanghai) Co., Ltd.* Otsuka Techno Corporation Microport Scientifi c Corporation* J.O. Pharma Co., Ltd. Germany VV Food & Beverage Co., Ltd.* OKAYAMA TAIHO PHARMACEUTICAL CO., LTD. Otsuka Pharma GmbH Otsuka Packaging Industries Co., Ltd. Cambridge Isotope Laboratories (Europe), GmbH Egypt Otsuka Foods Co., Ltd. Euriso-Top GmbH Egypt Otsuka Pharmaceutical Co., S.A.E. Otsuka Chilled Foods Co., Ltd. Advanced Biochemical Compounds, GmbH Otsuka-MGC Chemical Company, Inc. India JIMRO Co., Ltd. Italy Otsuka Chemical (India) Private Limited Earth Chemical Co., Ltd.* Nutrition & Sante Italia SpA Earth Environmental Service Co., Ltd.* Indonesia Spain P.T. Otsuka Indonesia Otsuka Pharmaceutical, S.A. P.T. Merapi Utama Pharma Nutrition & Sante Iberia SL P.T. Widatra Bhakti Hebron S.A. P.T. Amerta Indah Otsuka P.T. Otsuka Jaya Indah Sweden P.T. Lautan Otsuka Chemical Otsuka Pharma Scandinavia AB Switzerland South Korea Thailand Nutrinat AG Korea Otsuka Pharmaceutical Co., Ltd. Thai Otsuka Pharmaceutical Co., Ltd.* Dong-A Otsuka Co., Ltd.* UK Otsuka Pharmaceutical Europe, Ltd. Taiwan Pakistan Otsuka Pharmaceutical (U.K.) Ltd. Taiwan Otsuka Pharmaceutical Co., Ltd. Otsuka Pakistan Ltd.* King Car Otsuka Co., Ltd.* * List of consolidated companies. Equity-method affi liates are indicated with an asterisk (*). 03 OTSUKA GROUP CSR REPORT 2012 About the Otsuka Group North America 2,582 employees 15 companies Canada Otsuka Canada Pharmaceutical Inc. 2768691 Canada, Inc. USA Otsuka America, Inc. Otsuka America Pharmaceutical, Inc. Otsuka Pharmaceutical Development & Commercialization, Inc. Otsuka Maryland Medicinal Laboratories,