Sumitomo Dainippon Pharma Annual Report 2017

July 2017Representative Director,President and Chief Executive OfcerConstantly looking one step ahead of the times, we will challenge ourselves to develop new treatments that deliver value, and we will achieve sustainable growth as a pharmaceutical company with a distinctive global presence.Do you have a message forstakeholders?A6Q6In fiscal 2017 (year ending March 31, 2018), led by continued strong performance by our North America business, we expect to exceed Mid-term Business Plan targets with ¥450.0 billion in net sales (plan target: ¥440.0 billion) and ¥55.0 billion in operating income (plan target: ¥50.0 billion), which would bring about record high results for a second consecutive year. With regard to our dividend, we plan to pay an annual dividend on par with that for fiscal 2016, or ¥20 per share, including a ¥2 special dividend.Currently, Sumitomo Dainippon Pharma is working to create innovative new drugs by focusing research and development in the areas of Psychiatry & Neurology and Oncology. Through accelerating these efforts, and fostering our next generation of mainstay products, we will reduce the impact of the “LATUDA cliff” and pursue sustainable growth.Under our new Mid-term Business Plan, which starts in fiscal 2018, we will continue to look one step ahead of the times, challenge ourselves to discover new treatments that deliver value, and achieve sustainable growth as a research and development-oriented pharmaceutical company with a distinctive global presence. We look forward to the ongoing support of all stakeholders.engaging in active dialogue with employees, who are also important stakeholders. For example, in fiscal 2016, we again conducted an opinion poll (DSP Opinion) of all employees with the aim of encouraging communication between management and employees. Following the survey, executives visited each division and created opportunities for direct dialogue with employees, including discussing opinions, etc. expressed in the survey. Going forward, we will continue to promote dialogue with employees and will work to energize our organization and personnel, while further disseminating our Corporate Mission and strategies.We have positioned 2017 as “Year One for Work Style Innovations” and are promoting a variety of initiatives in this regard. In March 2017, we brought in an expert authority and held a seminar for all employees in order to deepen their understanding of work style innovations. Then, in April and May, we ran training sessions for all management rank employees in order to promote work style innovations at each work site.In the case of Sumitomo Dainippon Pharma, our MRs mainly work outside of the office, while employees in our plants work according to the particular hours of operation for each production line. This creates large differences in both content and style of work depending on the job category. As a result, while we are promoting group-wide measures, such as no overtime days (aimed at addressing the issue of excessive working hours) and greater utilization of paid leave, specific approaches at each work site are also necessary, as are considerations of new work styles that can yield the greatest results within limited working hours. As a company, we are providing institutional support by establishing systems, etc. for these work site-specific approaches. For example, in June 2016, we launched a work-from-home system to support employees who are engaged in childcare or nursing care. We have plans to make more employees eligible for the system and to leverage it as a way to achieve higher employee productivity. Sumitomo Dainippon Pharma aims to maximize corporate value by promoting future work style innovations and achieving a virtuous cycle of work-life balance and greater productivity for employees.Furthermore, we are committed to contributing to Global Health as part of our social responsibility as a pharmaceutical company. Since January 2017, we have participated in a program with 23 of the world’s pharmaceutical companies collaborating to improve access to healthcare in developing countries. In September 2016, we began collaborating with the local government and NGOs in Cambodia with the objective of improving health for mothers and children through safe childbirth and proper child development.18Sumitomo Dainippon Pharma Co., Ltd. Annual Report 2017

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