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Section 1 Value Creation Story [PDF 2.78MB / 20P] CONTENTS Section 1 03 The Value System of the Shionogi Group External recognition 05 Overview of Shionogi’s Value Creation Value Creation Story 07 Our History of Value Creation ESG index Important Business Assets and Strengths 11 1. Innovation Skills 13 2. Maximizing Value through Alliances and Collaborations 15 3. Expertise in Infectious Diseases 16 4. Human Resources 17 Special Features External recognition related to IR and sustainability Other Shionogi in the Fight Against Infectious Diseases Included by the Government Pension Investment Fund among a selection of companies with “Most-Improved Section 2 21 Message from the President Integrated Reports” (Three consecutive years: 27 Message from the Head of Corporate Strategy from FY2017) Corporate Governance Award for Excellence in A- Rating for Outstanding Health & Value Creation Strategy 29 New Medium-Term Business Plan STS2030 of the Year 2019 Corporate Disclosure “Climate Change” Productivity Management 31 Message from the Head of Ranking First in the and A List Company for 2020 Pharmaceutical Sector “Water security” the Integrated Disease Care Division in Surveys conducted by CDP 33 Special Features Establishing Ping An Shionogi as Part of HaaS Transformation Commitment to society Disclosure and engagement 35 R&D Strategy 40 Top-Line Strategy United Nations Global Compact Financial information 42 Establishing the Foundations to Create Value IR Library Human Rights Principle 1: Businesses should support and respect the protection of https://www.shionogi.com/global/en/investors/ir-library.html internationally proclaimed human rights; and Securities report (JP) Principle 2: make sure that they are not complicit in human Section 3 43 Shionogi Group’s Material Issues (Materiality) rights abuses. https://www.shionogi.com/jp/ja/investors/ir-library/ securities-report.html Labour Principle 3: Businesses should uphold the freedom of Material Issues to Create New Value association and the effective recognition of the Addressing Material for Customers and Society right to collective bargaining; Non-financial information Principle 4: the elimination of all forms of forced and Sustainability Issues 45 Protect People Worldwide from the Threat of compulsory labour; https://www.shionogi.com/global/en/sustainability.html Infectious Diseases Principle 5: the effective abolition of child labour; and Improve Social Productivity and Principle 6: the elimination of discrimination in respect of Policies 51 employment and occupation. https://www.shionogi.com/global/en/company/policies.html Extend Healthy Lifespans Environment Principle 7: Businesses should support a precautionary Basic Views and Guidelines on Corporate Governance 55 Contribute to Sustainable Social Security approach to environmental challenges; https://www.shionogi.com/global/en/company/cg/basic.html Principle 8: undertake initiatives to promote greater Material Issues to Realize a Sustainable environmental responsibility; and Environment Report Society and Support Shionogi’s Growth Principle 9: encourage the development and diffusion of https://www.shionogi.com/shionogi/global/en/investors/ environmentally friendly technologies. ir-library/annual-report-integrated-report.html 57 Improve Access to Healthcare Anti-Corruption Principle 10: Businesses should work against corruption in all its 59 Secure Human Resources to Support Growth forms, including extortion and bribery. 64 Respect Human Rights / Reinforce Supply Chain Management Forward-looking statements 65 Supply Socially Responsible Products and Services 67 Strengthening Governance This report contains forward-looking statements. These statements are based on expectations in light of the information currently available, assumptions that are subject to risks, and uncertainties which could cause actual results to differ materially from these statements. Risks and 81 Ensuring Compliance uncertainties include general domestic and international economic conditions, such as general industry and market conditions, and changes of 83 Protecting the Environment interest rates and currency exchange rates. These risks and uncertainties particularly apply to forward-looking statements concerning existing products and those under development. Product risks and uncertainties include, but are not limited to: completion and discontinuation of clinical trials; obtaining regulatory approvals; claims and concerns about product safety and efficacy; technological advances; adverse outcome of important litigation; domestic and foreign healthcare reforms; and changes of laws and regulations. For existing products, there are also manufacturing and marketing risks, which include, but are not limited to, inability to build manufacturing capacity to meet demand, unavailability Data Section 85 Consolidated Financial Highlights of raw materials, and competition with other companies’ products. The Company disclaims any intention or obligation to update or revise any 87 Consolidated 11-Year Financial Summary forward-looking statements whether as a result of new information, future events, or otherwise. This report contains information on pharmaceuticals Consolidated Financial Statements (including compounds under development), but this information is not intended to make any representations or advertisements regarding the 89 efficacy of these pharmaceuticals nor provide medical advice of any kind. See notes to Consolidated Financial Statements Year 95 Third-Party Assurance of Environmental Data ended March 31 with Independent Auditor’s Report 97 Non-financial Data https://www.shionogi.com/shionogi/global/en/ investors/ir-library/annual-report-integrated-report.html 98 Corporate Information 1 SHIONOGI INTEGRATED REPORT 2020 SHIONOGI INTEGRATED REPORT 2020 2 CONTENTS Section 1 03 The Value System of the Shionogi Group External recognition 05 Overview of Shionogi’s Value Creation Value Creation Story 07 Our History of Value Creation ESG index Important Business Assets and Strengths 11 1. Innovation Skills 13 2. Maximizing Value through Alliances and Collaborations 15 3. Expertise in Infectious Diseases 16 4. Human Resources 17 Special Features External recognition related to IR and sustainability Other Shionogi in the Fight Against Infectious Diseases Included by the Government Pension Investment Fund among a selection of companies with “Most-Improved Section 2 21 Message from the President Integrated Reports” (Three consecutive years: 27 Message from the Head of Corporate Strategy from FY2017) Corporate Governance Award for Excellence in A- Rating for Outstanding Health & Value Creation Strategy 29 New Medium-Term Business Plan STS2030 of the Year 2019 Corporate Disclosure “Climate Change” Productivity Management 31 Message from the Head of Ranking First in the and A List Company for 2020 Pharmaceutical Sector “Water security” the Integrated Disease Care Division in Surveys conducted by CDP 33 Special Features Establishing Ping An Shionogi as Part of HaaS Transformation Commitment to society Disclosure and engagement 35 R&D Strategy 40 Top-Line Strategy United Nations Global Compact Financial information 42 Establishing the Foundations to Create Value IR Library Human Rights Principle 1: Businesses should support and respect the protection of https://www.shionogi.com/global/en/investors/ir-library.html internationally proclaimed human rights; and Securities report (JP) Principle 2: make sure that they are not complicit in human Section 3 43 Shionogi Group’s Material Issues (Materiality) rights abuses. https://www.shionogi.com/jp/ja/investors/ir-library/ securities-report.html Labour Principle 3: Businesses should uphold the freedom of Material Issues to Create New Value association and the effective recognition of the Addressing Material for Customers and Society right to collective bargaining; Non-financial information Principle 4: the elimination of all forms of forced and Sustainability Issues 45 Protect People Worldwide from the Threat of compulsory labour; https://www.shionogi.com/global/en/sustainability.html Infectious Diseases Principle 5: the effective abolition of child labour; and Improve Social Productivity and Principle 6: the elimination of discrimination in respect of Policies 51 employment and occupation. https://www.shionogi.com/global/en/company/policies.html Extend Healthy Lifespans Environment Principle 7: Businesses should support a precautionary Basic Views and Guidelines on Corporate Governance 55 Contribute to Sustainable Social Security approach to environmental challenges; https://www.shionogi.com/global/en/company/cg/basic.html Principle 8: undertake initiatives to promote greater Material Issues to Realize a Sustainable environmental responsibility; and Environment Report Society and Support Shionogi’s Growth Principle 9: encourage the development and diffusion of https://www.shionogi.com/shionogi/global/en/investors/ environmentally friendly technologies. ir-library/annual-report-integrated-report.html 57 Improve Access to Healthcare Anti-Corruption Principle 10: Businesses should work against corruption in all its 59 Secure Human Resources to Support Growth forms, including extortion and bribery. 64 Respect Human Rights / Reinforce Supply Chain Management Forward-looking statements 65 Supply Socially Responsible Products and Services 67 Strengthening Governance This report contains forward-looking statements. These statements are based on expectations in light of the information currently available, assumptions that are subject to risks, and uncertainties which could
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