External Evaluations (as of June 30,2019) ™ Daiichi Sankyo Group Value Report 2019 Value Daiichi Sankyo Group MSCI Japan Empowering Women Select Index THE INCLUSION OF DAIICHI SANKYO CO.,LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF DAIICHI SANKYO CO.,LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADE- MARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES. “Eruboshi” Certification Mark “Kurumin” Certification Mark Logo given to Certified Health and Productivity Management Organization (White500) This report uses FSC® certified paper, which indicates that the paper used to print this Paper report was produced from properly managed forests. 3-5-1, Nihonbashi-honcho, Chuo-ku, Tokyo 103-8426, Japan This report was printed using 100% Inks biodegradable printing inks from vegetable Corporate Communications Department oil. Daiichi Sankyo Group Tel: +81-3-6225-1126 CSR Department The waterless printing method used for this Value Report 2019 Tel: +81-3-6225-1067 Printing report minimized the use and release of harmful liquid wastes. https://www.daiichisankyo.com/ Printed in Japan 005_7045687911909.indd 1 2019/09/27 18:22:19 Introduction Our Mission The Core Values and Commitments serve as the criteria for business activities and In addition, we have established the DAIICHI SANKYO Group Corporate Conduct Charter . decision-making used by executive officers and employees in working to fulfill Our Mission . This charter calls on us to fulfill our social responsibilities by acting with the highest ethical Our Corporate Slogan succinctly explains the spirit of Our Mission, Core Values and standards and a good social conscience appropriate for a company engaged in business Commitments. that affects human lives, and we model our business activities accordingly. Our Mission Our Mission DAIICHI SANKYO Group Corporate Conduct Charter The DAIICHI SANKYO Group fulfills its mission “To contribute to the enrichment of quality of life around the world through the creation of innovative pharmaceuticals, and through the provision of pharmaceuticals addressing diverse medical needs." We comply with laws, regulations and rules To contribute to the enrichment of quality of life around the world regarding global corporate activities, and act with the highest ethical standards and a good social conscience based on the following 10 principles of this Charter. through the creation of innovative pharmaceuticals, In order to actively respond to an ever-changing society, we address social issues and business in an integrated manner. It will enhance our corporate value, fulfill our social responsibilities and contribute to the realization of a sustainable society. and through the provision of pharmaceuticals Article 1 Contribution to healthcare We diligently address medical needs by providing beneficial, safe, and reliable pharmaceuticals and services. addressing diverse medical needs. Article 2 Fair business practices We respect international norms, diverse cultures and customs, conduct business in a fair manner through free and fair competition, and conduct responsible procurement by complying with laws and regulations in each country and region in which we do business. We maintain productive, positive and professional relationships with our stake-holders, which include medical professionals and governments. Article 3 Fair disclosure of information and constructive dialogue with stakeholders We actively, effectively and fairly disclose corporate information to the public and engage in an open and constructive dialogue with a wide range of stakeholders. Core Values Commitments Article 4 Respect for human rights We conduct business that respects the human rights of all persons. Innovation the introduction of 1. To create innovative medicines changing Article 5 Enhancement of workplace environment and human resource development We respect the diversity of our employees, and seek to include a diversity of thought in our daily work. We are committed to ensuring a new ideas, methods, SOC* healthy and safe working environment and do not tolerate harassment and discrimination. We provide employees the opportunity to or invention * SOC (Standard of Care): Universally applied best treatment practice in today’s develop their skills and abilities for the mutual growth of the individual employee and the corporation. medical science Article 6 Information management 2. To take a global perspective, and respect We take necessary measures to manage and protect personal information, business partner information as well as other confidential Integrity the quality of being information of Daiichi Sankyo and others. regional values Article 7 Engagement in environmental issues honest and of always 3. To foster intellectual curiosity and strategic Environmental challenges are universally critical to all of mankind. We responsibly manage the environmental impact of our operations and include our efforts for a better environment in our corporate activities and our very survival. having high moral insight principles Article 8 Involvement in community and contribution to its development 4. To provide the highest quality medical We are actively involved in community activities and contribute to its development as a good corporate citizen. information Article 9 Thorough crisis and emergency management Accountability being responsible for We adhere to crisis and emergency management in the face of actions by antisocial forces, terrorism, cyber-attacks, natural disasters, 5. To provide a stable supply of top-quality pandemics and other significant issues that may threaten the order or safety of civil society and the corporate activity. the effects of your pharmaceutical products Article 10 Role of executives and implementation of this Charter actions, and being Executives of the DAIICHI SANKYO Group actively build and maintain effective governance systems to implement this Charter, ensure it 6. To be an ethical, trusted, and respectful is understood by all Group companies, and encourage behavior based on the principles of this Charter to the business partners of willing to explain or be Daiichi Sankyo Group. If the Charter is violated, executives of DAIICHI SANKYO Group Companies take responsibility to respond by partner determining the cause of infringement, taking corrective action as necessary and making efforts to prevent similar violations in the future. criticized for them 7. To be accountable for achieving our goals 8. To demonstrate professionalism, respect for others, and teamwork Sustainable Development Goals (SDGs) In light of the Sustainable Development Goals (SDGs) and other international initiatives, the Group has made Corporate Slogan revisions to the DAIICHI SANKYO Group Corporate Conduct Charter in April 2019 and has declared that the Group will contribute to the realization of a sustainable ™ society. 1 Daiichi Sankyo Group Value Report 2019 Daiichi Sankyo Group Value Report 2019 2 090_7045687911909.inddpdf_m010_7045687911909.indd 1 1-2 2019/09/27 14:22:28 090_7045687911909.indd 2 2019/09/272019/10/01 14:22:299:32:59 Introduction Daiichi Sankyo’s Value Creation Process Daiichi Sankyo is requested from society for various needs including providing a stable supply of quality global organization and talent, as well as our presence in Japan. At the same time, we address sustainability issues pharmaceuticals, responding to unmet medical needs*1, improving access to pharmaceuticals*2, and ESG activities. including social and the environmental issues, integrally with our business activities, and these activities also deliver We engage in medium-to-long-term initiatives using our financial capital, intellectual capital, human capital and value to society. other capitals to enhance our long-term corporate value, as well as to realize a sustainable society. By continuing this cycle of our value creation process, we will sustainably improve our corporate value, and At Daiichi Sankyo, we define our 2025 Vision as striving to become a “Global Pharma Innovator with competitive we will provide the values in a well-balanced manner generated by Daiichi Sankyo to our stakeholders and society, advantage in oncology,” and we are currently aiming to achieve the goals in our 5-Year Business Plan in order to including patients, their families, healthcare professionals, our shareholders and investors, business partners, realize this vision. The basis of Daiichi Sankyo’s value creation is in addressing diverse medical needs through employees and local communities. *1 Medical needs for effective treatment and drugs yet to be developed Process Creation Value Daiichi Sankyo’s continually creating innovative pharmaceuticals while taking advantage of our strengths in science and technology, *2 Pharmaceuticals needed by patients being delivered sufficiently and consistently Diverse Requirements To contribute to the enrichment of quality of life around the world through of Society Investment capital Our Mission P1 the creation of innovative pharmaceuticals, and through the provision of Value Provided to pharmaceuticals addressing diverse medical needs. Stakeholders and Society Medium-to-Long-Term P21 Initiatives and Challenges Patients and their families, Providing a stable and healthcare professionals supply of top-quality Daiichi Sankyo’s Strategies Promoting environmental ● Innovative medicine changing