Group-wide risk management and compliance framework

「In 2025, the former Group Compliance and Risk Management Committee was reorganized into a Compliance Committee and a Risk Management Committee. The Risk Management Committee is responsible for identifying risks, preventing their occurrence and ensuring a prompt and appropriate response when they occur.」

「At its Board of Directors meeting on 9 October 2025, the Board received from the Special Committee for Governance Enhancement its Final Report, titled "Final Report of the Special Committee for Governance Enhancement: Recommendations on Strengthening the Governance Framework and Improving Its Operation." On 31 October, we publicly disclosed the full report, an overview of its recommendations, our basic policy and our specific response policy based on the recommendations. We will work to further strengthen governance by reliably implementing initiatives in line with the response policy.」

「In August, we established the Special Committee for Governance Enhancement as an advisory body to the Board of Directors to further strengthen governance, including compliance and risk management across the group. The committee comprises 3 members independent of the company and is tasked with examining the internal control organization and providing advice and recommendations on governance from an objective and expert perspective.」

「Our group requires all employees to take compliance training every month. In addition, employees engaged in sales are required to take training twice a year focused on compliance with industry-related laws and regulations, led by the Antimonopoly Act.」

「With the participation of pharmaceutical companies and others, the BCP Framework Development Study Group compiled the Recommendations on Business Continuity Planning for Pharmaceutical Supply. We are also working to establish a business continuity plan covering the entire supply chain, including by conducting joint disaster-preparedness training with the Japan Ground Self-Defense Force based on a scenario involving a Nankai Trough megaquake.」

「In response to the series of events, our group is working to further strengthen compliance, including by enhancing the functions of the Group Compliance and Risk Management Committee and requiring compliance training for all employees and Antimonopoly Act training for all employees involved in sales.」

「Our group takes seriously and sincerely the circumstances involving 東邦薬品株式会社's violation of the Antimonopoly Act. Under the determination and direction of senior management, we are working to prevent recurrence, including by conducting expanded Antimonopoly Act and compliance training as one of the key themes for fiscal 2021.」

「Our group takes seriously and sincerely the circumstances involving 東邦薬品株式会社's violation of the Antimonopoly Act. Under the determination and direction of senior management, we are working to prevent recurrence, including by conducting expanded Antimonopoly Act and compliance training as one of the key themes for fiscal 2021.」

「We take seriously the fact that our consolidated subsidiary 東邦薬品株式会社 was subject to an on-site inspection by the Japan Fair Trade Commission on 27 November 2019 on suspicion of violating the Antimonopoly Act in connection with a tender for prescription drugs commissioned by the Japan Community Health care Organization (JCHO). We have worked to reinforce compliance and announced specific compliance-enhancement initiatives on 3 July 2020.」

「As part of our response to the Guidelines for Promotional Information Provision Activities for Prescription Drugs issued in September 2018, we strengthened our organizational capabilities to address changes in the operating environment by establishing a Group Risk Management Office at the company and, at pharmaceutical wholesale subsidiaries including our consolidated subsidiary 東邦薬品株式会社, establishing Sales Information Oversight Offices.」

「Based on the Basic Risk Management Regulations, we established a Group Compliance and Risk Management Committee to centrally collect and assess information on risks affecting the group, identify material group risks, and implement measures to avoid or minimize those risks.」

「Based on the Basic Risk Management Regulations, we established a Group Compliance and Risk Management Committee to centrally collect and assess information on risks affecting the group, identify material group risks, and implement measures to avoid or minimize those risks.」

「We established a Group Compliance and Risk Management Committee to centrally collect and assess information on risks affecting the group, identify material group risks, and implement measures to avoid or minimize those risks.」