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Otsuka Group CSR Report 2014/12

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Otsuka Group CSR Report 2014/12 OtsukaOtsuka Group Group CSRCSR Report Report 2014/12 2015 Otsuka-people creating new products for better health worldwide Editorial Policy In keeping with its corporate commitment to “Otsuka-people creating new products for better health worldwide,” the Otsuka Group endeavors to create new and innovative products in diverse areas related to health, as a global healthcare company devoted to better health worldwide. The Otsuka Group CSR Report provides an overview of the diverse initiatives that the Otsuka Group engages in: from its relationship with stake- holders in the course of doing business to realizing its corporate commitment. We hope that this report promotes a better mutual understanding with our stakeholders. In this report, we focus on the three concepts below in addressing the five areas of CSR at the Otsuka Group The five areas of CSR at the — health, environment, quality, culture and employees. Otsuka Group Otsuka Group corporate philosophy/ Health p12 1 priority issues (materiality) Environment p18 International CSR guidelines 2 - ISO 26000 seven core subjects Quality p30 - GRI - Environmental Report Guidelines Culture p36 3 Communication with stakeholders Employees p42 Priority initiatives Here are the activities that the Otsuka Group is currently focused on. Scope of report This report focuses on Otsuka Holdings and encompasses information for Otsuka Group companies worldwide, centering on the following 13 Group companies in Japan: Otsuka Pharmaceutical Co., Ltd. Otsuka Foods Co., Ltd. Okayama Taiho Pharmaceutical Co., Ltd. Otsuka Pharmaceutical Factory, Inc. EN Otsuka Pharmaceutical Co., Ltd. Otsuka Packaging Industries Co., Ltd. Taiho Pharmaceutical Co., Ltd. Otsuka Electronics Co., Ltd. JIMRO Co., Ltd. Otsuka Warehouse Co., Ltd. Otsuka Techno Corporation Otsuka Chemical Co., Ltd. J.O. Pharma Co., Ltd. Period covered Due to a change in the fiscal year-end to December, the results cover the period from April 1, 2014 to December 31, 2014. The activities reported on include some conducted more recently. Publication schedule The next report is scheduled for publication in summer 2016. Guidelines referenced This report was compiled with reference to the GRI Sustainability Reporting Guidelines 3rd Edition, ISO 26000, and the Environmental Report Guidelines 2012 Edition issued by Japan’s Ministry of the Environment. 1 OTSUKA GROUP CSR REPORT 2014/12 Corporate Profile Contents As of December 31, 2014 Company name: Otsuka Holdings Co., Ltd. About the Otsuka Group 2 About the Otsuka Group Established: July 8, 2008 Corporate Profile 2 Capital: JPY 81,690 million Otsuka Group Across the Globe 3 Head Office: 2-9 Kanda-Tsukasamachi, Business Overview of the Otsuka Group 5 Chiyoda-ku, Tokyo 101-0048, Japan CSR Highlights 7 Tokyo Headquarters: Shinagawa Grand Central Tower, 2-16-4 Konan, Minato-ku, Tokyo 108-8241, Japan Message from the President 9 Representative: Tatsuo Higuchi, President and CEO Message from the President 9 the President Message from Employees: 73 (Consolidated: 29,482) Corporate Philosophy 11 Scope of consolidation: 102 consolidated subsidiaries and 17 equity-method affiliates Health 12 Business description: Control, management, and other operational aspects of busi- Addressing Unmet Needs 13 ness activities related to holding the shares of companies Advocating the Importance of Hydration that operate in the fields of pharmaceuticals, nutraceuticals, and Electrolytes 15 consumer products, and other businesses. Nutrition Education 16 Communicating Health Information 17 Health Environment 18 Eco-Friendly Plants 19 Consolidated Net Sales Consolidated Operating Income Environmental Management 21 Net sales Operating income Operating margin Environmental Performance Data 22 Environment (Unit: ¥ billion) (Unit: ¥ billion) (%) 1,452.8 1,500 250 18 Eco-Friendly Products 25 196.5 1,218.1 1,224.3 198.7 1,127.6 1,154.6 200 16 Low Carbon Neutral Initiatives 27 169.7 1,000 148.7 16.0 Initiatives for a Resource Recycling Society 29 150 126.3 14 13.9 13.7 100 12.9 12 500 Quality 30 50 11.2 10 Quality 0 0 8 Safety Initiatives 31 FY2010 F Y2011 FY2012 FY2013 FY2014* FY2010 F Y2011 FY2012 FY2013 FY2014* Corporate Governance 33 Compliance 34 Consolidated Ordinary Income Research and Development Expenses Risk Management 35 Ordinary income Ordinary margin R&D expenses Ratio of R&D expenses to net sales (Unit: ¥ billion) (%) (Unit: ¥ billion) (%) 17.7 249.0 Culture 250 18 250 20 215.2 Culture 36 192.4 200 184.5 217.2 16 200 172.9 18 164.7 152.1 159.2 Community Initiatives 37 150 15.1 14.8 14 150 17.1 16 128.4 Cleanup Activities 39 15.8 13.2 100 12 100 14.6 14 Community Exchange 40 13.8 14.1 Employees 11.4 50 10 50 12 Youth Education 41 0 8 0 10 FY2010 F Y2011 FY2012 FY2013 FY2014* FY2010 F Y2011 FY2012 FY2013 FY2014* Employees 42 Consolidated Net Sales by Consolidated Net Sales by Diversity 43 Geographical Segment (FY2014*) Business Segment (FY2014*) Work-Life Balance 45 Sales to customers by market Sales to customers by market Development of Human Capital 46 Japan: 467.3 Consumer Products: 34.4 Other: 73.7 Employee Health 47 Other: 211.7 6.0% 17.3% 2.8% Third-Party Opinion/ Editorial Postscript 48 38.2% 19.0% 72.2% 44.5% North America: 545.3 Nutraceutical: 232.7 Pharmaceuticals: 883.5 (Unit: ¥ billion) (Unit: ¥ billion) * Due to a change in the fiscal year-end to December, FY2014 covers the nine-month period from April 1, 2014 to December 31, 2014. OTSUKA GROUP CSR REPORT 2014/12 2 Otsuka Group Across the Globe As of December 31, 2014, over 60% of consolidated net sales were from markets outside Japan. At least half of the roughly 29,000 consolidated employees are also located overseas. Otsuka Group employees are working every day around the world, for the universal betterment of human health. Belgium China Nutrition & Sante Benelux S.A. Otsuka (China) Investment Co., Ltd. Zhejiang Otsuka Pharmaceutical Co., Ltd. Czech Republic Sichuan Otsuka Pharmaceutical Co., Ltd. Interpharma Praha, a.s. Tianjin Otsuka Beverage Co., Ltd. France Otsuka Sims (Guangdong) Beverage Co., Ltd. Otsuka Pharmaceutical France SAS Otsuka Pharmaceutical (H.K.) Ltd. Euriso-Top SAS Otsuka Beijing Research Institute Nardobel SAS Pharmavite (Shanghai) Business Information Consultancy Co., Ltd. Nutrition & Sante SAS Giant Harvest, Ltd. Nutrition & Nature SAS Suzhou Otsuka Pharmaceutical Co., Ltd. Laboratoires Dietetique et Sante SAS Shanghai Otsuka Foods Co., Ltd. Kisco International SAS Zhangjiagang Otsuka Chemical Co., Ltd. ALMA S.A.* Higashiyama (Shanghai) Function Film Co., Ltd. China Otsuka Pharmaceutical Co., Ltd.* Germany Guangdong Otsuka Pharmaceutical Co., Ltd.* Otsuka Pharma GmbH VV Food & Beverage Co., Ltd.* Cambridge Isotope Laboratories (Europe) GmbH Shanghai MicroPort Medical (Group) Co., Ltd.* Advanced Biochemical Compounds GmbH MicroPort Scientific Corporation* Euriso-Top GmbH Egypt Philippines Otsuka Frankfurt Research Institute GmbH Egypt Otsuka Pharmaceutical Co., S.A.E. Otsuka (Philippines) Pharmaceutical, Inc. Italy Otsuka Pharmaceutical Italy S.r.l. India South Korea Nutrition & Sante Italia SpA Claris Otsuka Private Limited Korea Otsuka Pharmaceutical Co., Ltd. Otsuka Chemical (India) Private Limited Korea OIAA Co., Ltd. Spain Otsuka Electronics Korea Co., Ltd. Otsuka Pharmaceutical, S.A. Indonesia KOC Co., Ltd. P.T. Otsuka Indonesia Nutrition & Sante Iberia SL Dong-A Otsuka Co., Ltd.* Hebron S.A. P.T. Widatra Bhakti Trocellen Iberica S.A. P.T. Amerta Indah Otsuka Taiwan P.T. Otsuka Jaya Indah Taiwan Otsuka Pharmaceutical Co., Ltd. Sweden P.T. Merapi Utama Pharma King Car Otsuka Co., Ltd.* Otsuka Pharma Scandinavia AB P.T. Lautan Otsuka Chemical Thailand Switzerland New Zealand Thai Otsuka Pharmaceutical Co., Ltd.* Nutrinat AG Diatranz Otsuka Limited* UK Pakistan Otsuka Pharmaceutical Europe Ltd. Otsuka Pakistan Ltd.* Otsuka Pharmaceuticals (U.K.) Ltd. Astex Therapeutics, Ltd. 2,331employees 26 companies 8,504 employees 38 companies Europe Asia / Oceania / Middle East 3 OTSUKA GROUP CSR REPORT 2014/12 Consolidated Net Sales in and outside of Japan Consolidated Number of Employees in and outside of Japan (Unit: ¥ billion) 61.8 (%) (No. of employees) (%) 1,500 1,452.8 60 30,000 28,288 29,482 60 25,330 About the Otsuka Group 1,218.1 1,224.3 25,188 24,595 15,197 1,127.6 1,154.6 56.8 14,172 11,598 1,000 50 20,000 11,158 10,787 50 50.2 51.1 824.4 51.5 49.0 50.1 622.7 757.0 552.5 579.7 45.8 44.3 43.9 500 40 10,000 40 14,116 14,285 575.1 574.9 595.3 628.3 467.3 14,030 13,808 13,732 0 30 0 30 FY2010 FY2011 FY2012 FY2013 FY2014* FY2010 FY2011 FY2012 FY2013 FY2014* Consolidated net sales in Percentage of consolidated net sales Employees outside Japan Percentage of employees outside Japan international markets from international markets Employees in Japan Consolidated net sales in Japan * Due to a change in the fiscal year-end to December, FY2014 covers the nine-month period from April 1, 2014 to December 31, 2014. Japan Canada Otsuka Holdings Co., Ltd. 2768691 Canada, Inc. Otsuka Pharmaceutical Co., Ltd. Otsuka Canada Pharmaceutical, Inc. Otsuka Pharmaceutical Factory, Inc. Taiho Pharmaceutical Co., Ltd. USA Otsuka Warehouse Co., Ltd. Otsuka America, Inc. Otsuka Chemical Co., Ltd. Otsuka America Pharmaceutical, Inc. Otsuka Medical Devices Co., Ltd. Otsuka Pharmaceutical Development & Commercialization, Inc. Otsuka Foods Co., Ltd. Otsuka Maryland Medicinal Laboratories, Inc. EN Otsuka Pharmaceutical Co., Ltd. Cambridge Isotope Laboratories, Inc. Otsuka Electronics Co., Ltd. CIL Isotope Separations, LLC Otsuka Techno Corporation Membrane Receptor Technologies, LLC Otsuka Packaging Industries Co., Ltd. Pharmavite, LLC JIMRO Co., Ltd. Pharmavite Direct LLC Otsuka Ridge Co., Ltd. Ridge Vineyards, Inc. Nippon Pharmaceutical Chemicals Co., Ltd. Crystal Geyser Water Company J.O. Pharma Co., Ltd. Otsuka Global Insurance, Inc. Otsuka Naruto Development, Inc. Astex Pharmaceuticals, Inc. Okayama Taiho Pharmaceutical Co., Ltd.
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