Alfresa : Engagement with Shareholders and Investors

Governance

Engagement with Shareholders and Investors

Basic Policy

The Company discloses information promptly, based on transparency, fairness, continuity, timeliness, and bi directionality principles. Specifically, the Company discloses information in compliance with the Companies Act, the Financial Instruments and Exchange Act, other laws and regulations, and the regulations on timely disclosure of corporate information stipulated in the Securities Listing Regulations of the Tokyo Stock Exchange. The Company also discloses information that, although not covered by the scope of various laws and regulations or timely disclosure regulations, it believes will be of benefit to shareholders and investors proactively and fairly via appropriate means.

Fair Disclosure

From a fair disclosure perspective, we actively and fairly disclose financial information to shareholders and investors, such as our management status, as well as non-financial information, such as environmental, CSR, and corporate governance-related matters.

System

transcription service, and the content explained in our financial results briefings is transcribed and disseminated on the service provider's website.

We occasionally host meetings and individual visits from shareholders, institutional investors, and securities analysts. Moreover, we carry out individual visits to, and hold online meetings with, overseas investors periodically. We also participate in conferences sponsored by securities firms for foreign institutional investors to explain the latest conditions, business results, and future strategies of the Alfresa Group, as well as answer their questions.

In the fiscal year ended March 31, 2023, the Company held

72 individual meetings with shareholders investors and ana- lysts, as outlined below.

Handled by

• Representative director and president, the in-charge director, the Public Relations and Investor Relations Department

To ensure consistency and uniformity of information disclo- sure, representative directors, the information disclosure manager responsible for the Information Disclosure Department, and the Information Disclosure Department (the Public Relations and Investor Relations Department) are designated as the officers and employees of the Company involved in information disclosure. In cooperation with related divisions within the Company, the Information Disclosure Department gathers information necessary for constructive dialogue with shareholders and investors. The disclosure of material information as defined in the Fair Disclosure Rules is subject to deliberation, as necessary, by a disclosure

committee­ consisting of the representative director, the

­information management officer, the person in charge of the Information Disclosure Department (the head of the Public Relations and Investor Relations Department), and other members. The committee submits reports to the Board of Directors as appropriate.

Status of Engagement

with Shareholders and Investors

The Alfresa Group reports earnings quarterly and holds results briefings twice a year for securities analysts and institutional investors. At these briefings, the representative director presents the latest conditions, business results, and future strategies of the Alfresa Group and answers questions from the attendees.

IR information is available on our website in the section provided for shareholders and investors. There, we post financial statements, shareholder reports (business reports), briefing materials, data books, and other information, and distribute videos of financial results briefings. We utilize a

Overview of Shareholders and Investors

• Domestic and foreign investors with quantitative, growth, GARP, and value investment styles (fund managers, analysts, ESG officers, and officers with voting rights)

Main Themes

• Medium-term management plan	• Financial and capital strategies
• Industry environment and business
• ESG initiatives, including corporate
strategies
governance
• Digital transformation (DX)

Main Points of Shareholder and Investor Interest

• Progress on efforts to foster a corporate culture that places the highest priority on compliance
• Market environment and outlook by business segment, centered on the Ethical Pharmaceuticals Wholesaling Business
• Proactive DX strategy and initiatives oriented toward total supply chain services
• Status on reducing cross-shareholdings and financial and capital strategy approach to improving capital efficiency further
• Status of Board of Directors' operations and ESG initiatives, such as
  investment­ in human capital

Feedback to the Management Team and the Board of Directors

• The Public Relations and Investor Relations Department reports to the president and the officer in charge as necessary
• Quarterly reporting to the Board of Directors

Changes Incorporated Based on Dialogue and Feedback

• Reduction in treasury stock
• In light of shareholder and investor expectations of further improvements in profitability and capital efficiency, formulation of the 22-24Mid-term Management Plan: Leap into the Future "An Evolving Healthcare Consortium" and the Alfresa Group's Medium- to Long-Term Vision

Alfresa Group Integrated Report 2023

85