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Annual Report 2018

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Annual Report 2018 Annual Report 2018 Year Ended March 31, 2018 Protecting the World’s Vision Santen’s Values Santen’s Values 1 1. Santen’s original interpretation of a passage from chapter 22 of Zhongyong (The Doctrine of the Mean) by Confucius, meaning “exploring the secrets and mechanisms of nature in order to contribute to people’s health.” We think carefully about what is essential, decide clearly what we should do, and act quickly. Mission Statement By focusing on ophthalmology, Santen develops unique scientific knowledge and organizational capabilities that contribute to the well-being of patients, their loved ones and consequently to society. Ophthalmology is our singular focus. Santen has conducted business activities as a specialized pharmaceutical company since its foundation in 1890. With Santen’s Values as our starting point, we build upon a foundation of scientific knowledge and organizational capabilities nurtured for nearly 130 years. We will continue to contribute to ophthalmic treatments, working primarily for the benefit of patients and their loved ones. Santen Pharmaceutical Co., Ltd. Annual Report 2018 1 Santen has been conducting business activities based on its strengths: a thoro ugh customer focus and specialized expertise in the field of ophthalmology. In order to fulfill the wishes and expectations of pat ients and medical professionals toward eye care, Santen will continue to contribute to the development of ophthalmic treatment. Wishes and expectations for eye care received by Santen at the 36th World Ophthalmology Congress (WOC2018) Our Strengths Specialized Thorough expertise Product development harnessing advanced technical capabilities Sales and marketing activities attuned to the needs of each region customer in the field of and expertise as well as partnerships with external institutions focus ophthalmology A product lineup cov ering a wide range of ophthalmic disorders treatments Santen has been conducting business activities based on its strengths: a thoro ugh customer focus and specialized expertise in the field of ophthalmology. In order to fulfill the wishes and expectations of pat ients and medical professionals toward eye care, Santen will continue to contribute to the development of ophthalmic treatment. Wishes and expectations for eye care received by Santen at the 36th World Ophthalmology Congress (WOC2018) Our Strengths Specialized Thorough expertise Product development harnessing advanced technical capabilities Sales and marketing activities attuned to the needs of each region customer in the field of and expertise as well as partnerships with external institutions focus ophthalmology A product lineup cov ering a wide range of ophthalmic disorders treatments Santen Pharmaceutical Co., Ltd. Annual Report 2018 3 page 6 CONTENTS CEO Message 1 Santen’s Values 6 CEO Message 8 COO Message 10 Medium-Term Plan (MTP2020) 14 Topics/Facts and Figures 18 Ophthalmic Treatment around the World 22 Corporate Social Responsibility (CSR) 28 Research and Development 30 Japan Business page 32 Asia Business 8 33 EMEA1 Business COO Message 34 Corporate Governance 34 Corporate Governance 42 Board of Directors, Corporate Auditors and Corporate Officers 44 Financial Information and Corporate Information 44 Eleven-Year Summary of Selected Financial Data 46 Financial Statements 52 History 54 Corporate Information/Stock Information 1. Europe, the Middle East and Africa page The following are registered trademarks of Santen’s alliance partners: Cravit and Tarivid (Daiichi Sankyo Company, Limited); 22 Detantol (Eisai R&D Management Co., Ltd.); Corporate Social Livostin (Johnson & Johnson); Rescula (Sucampo Pharma, LLC); Responsibility (CSR) Eylea (Bayer); Alesion (Boehringer Ingelheim) 4 Santen Pharmaceutical Co., Ltd. Annual Report 2018 Annual Report 2018 (Integrated) Information Provided Information contained in this report is selected Editorial Policy in order of importance from both aspects of value creation for Santen and the impact on From fiscal 2017, the Santen Group has adopted a policy to integrate stakeholders. its former Annual Report and CSR Report into an integrated report that provides a view of overall business activities based on Santen’s Applicable Scope Values. The integrated report is edited with the intention to provide Santen Pharmaceutical Co., Ltd. and customers and society with an understanding of Company values and consolidated subsidiaries includes comprehensive coverage of financial information as well as non-financial information such as management strategies, review of operations and CSR activities. Santen has streamlined content and Reporting Period simplified descriptions to allow for easier understanding by a wide Fiscal 2017 (April 1, 2017 to March 31, 2018) range of stakeholders, starting with shareholders and investors. Certain information is updated after April 1, 2018. Reference Guidelines ・International Integrated Reporting Council, The International Integrated Reporting More detailed information is disclosed through the Framework following media. ・Global Reporting Initiative, The GRI Sustainability Reporting Standards Corporate Website ・Ministry of the Environment, Santen presents detailed financial and non-financial information on its Environmental Reporting Guidelines corporate website in order to foster a deeper understanding of its business activities as a specialized pharmaceutical company. Moreover, Santen is Note on Accounting Standards also working to enhance the disclosure of useful information on eye health The Santen Group has adopted International for the general public and information on ophthalmic treatments for medical Financial Reporting Standards (IFRS) from professionals. fiscal 2014, for the purpose of enhancing http://www.santen.com the international comparability of its financial information. Figures for fiscal 2013 have been restated to conform to IFRS for comparison and analysis purposes. IR Website (“Investors & Media” on Santen’s Corporate Website) Caution Concerning Forward- Santen’s IR website provides detailed information for shareholders and Looking Statements investors. The website issues timely disclosures of the most recent This annual report contains forward-looking materials related to IR including performance reports, data books, financial statements regarding the Company’s plans, result meeting presentations, securities reports and annual shareholders strategies and results for the future. All meeting notices, as well as videos from financial result meetings. Santen forward-looking statements are based on is also planning improvements to information for individual investors on the judgments derived from the information available to the Company at the time of website. publication. Certain risks and uncertainties http://www.santen.com/en/ir could cause the Company’s actual results to differ materially from any projections presented in this report. These risks and uncertainties CSR Website (“CSR” on Santen’s Corporate Website) include, but are not limited to, adverse economic conditions, delays in new products Santen’s CSR website provides more detailed information on CSR activities launch, currency exchange rate, legislative and based on Santen’s Values. The website introduces unique initiatives regulatory developments. conducted through Santen businesses, as well as initiatives related to the CSR concepts of fair business, human rights, labour, occupational health and safety, environment, good corporate citizen, and stakeholder engagement. The CSR website also presents information related to the environment, as well as employment and human resources. http://www.santen.com/en/csr Santen Pharmaceutical Co., Ltd. Annual Report 2018 5 CEO Message Under our new management structure, we will fulfill our responsibilities as a specialized ophthalmic company, with the aim of contributing further to ophthalmic treatment around the world. Contributing Further to Ophthalmic Treatment under Our New Management Structure Accelerating Business Based on the treatment needs of each country and region. Santen’s Santen’s Values Mission Statement based on our Values clearly states that we must concentrate our efforts on a carefully chosen field On April 1, 2018, Santen adopted a new management of specialization and contribute to the well-being of patients structure. Shigeo Taniuchi was appointed as President and and their loved ones. It articulates “for whom” and “for Chief Operating Officer, and I was appointed as Chairman what purpose” Santen exists as a company. By sharing this and Chief Executive Officer. This opens a new chapter for philosophy with employees around the world, I am confident Santen. We are determined to implement a wide range of that the entire Company will be able to demonstrate its additional reforms, with a view to contributing further to strengths to the fullest extent possible. I have attached great ophthalmic treatment and achieving sustainable growth. importance to Santen’s Values, both as a basis for making Meanwhile, although the management structure has management decisions and as a foundation for communi- changed, Santen’s Values will remain the bedrock of the cating with employees. Company. Santen’s Values are embodied in the phrase Santen is working on priorities such as developing prod- “Tenki ni sanyo suru,” which literally means “exploring the ucts that meet the needs of medical professionals, offering secrets and mechanisms of nature in order to contribute to a product lineup that covers a wide range of therapeutic people’s health.”
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