Messages from Outside Directors

I have been working for financial institutions in Japan and abroad in jobs related to corporate finance, capital markets and corporate public relations. Using the specialized knowledge I’ve accumulated professionally, I’d like to help build Tsumura’s corporate value and contribute to its growth strategy.
As medical advancement has generally increased longevity, public interest is growing in personalized medicine and detection of pre-symptomatic health risks. Tsumura has been expanding the positive evaluation of Kampo efficacy as verified by history and proposing treatments that combine Eastern and Western medicine. In that, I think Tsumura holds great potential for contributing to the promotion of health worldwide. Corporations face more demand than ever to protect limited natural capital as they grow, and Tsumura has cherished this spirit since its founding. I feel this is a company in which all employees and management can work with pride to create value to share with society.

As a lawyer, my work has entailed a broad range of responsibilities, mainly related to corporate law.Making the most of my experience and specialized knowledge in international trade and the like, I plan to actively offer my opinions on the Company’s inherent risks and legal compliance. I will also put effort into overseeing corporate governance to ensure it is appropriately formulated and effectively executed.
China, in particular, is our core supplier of crude drugs, as well as a production base and market essential to Tsumura’s future growth. I will work to monitor the China business along with domestic operations, gathering timely information for maintaining necessary controls.
The value of Kampo is not sufficiently recognized in the world. This is exactly why I think there is great room for growth for Tsumura, and it can broadly circulate its products to help extend healthy lifespans.

When I look back on our first medium-term management plan, I regret we had to limit shipping because the Shanghai Plant had to suspend operations due to the city’s lockdown in 2022. At the same time, I thought highly of our efforts to maintain supplies, undertaking all possible measures based on our business continuity plan. I understand we made steady progress with all our strategic challenges, except that we couldn’t sign a partnership agreement with a manufacturer of traditional Chinese medicinal products in China. That said, we have a long way to go in terms of cultivating personnel capable of handling new business fields, including healthcare more broadly.
In fiscal 2024, Tsumura’s Nomination/Remuneration Advisory Committee was split into two committees to handle input on nominations and remuneration with more efficiency and effectiveness. What’s important in realizing our long-term management vision, I think, is cultivating global personnel for the China business, future expansion into the US and Asia, and appointing more women to important posts. During the second medium-term management plan, I will continue to monitor our governance systems and support initiatives to build corporate value.

In the board meetings of fiscal 2024, we spent the most time discussing our China business. We talked about the prospects for technological and/or business partners, the validity of our investment amounts, synergistic effects and growth scenarios. We continued discussions to see whether a given investment target would lead to higher corporate value for Tsumura. To seize the right timing for investment and partnerships, flexible decision-making is important. So I’m working to always be ready to decide, by creating opportunities for early discussions in meetings of the outside directors as well as setting up independent meetings for reporting.
During the second medium-term management plan, we expect larger-than-planned investments in production equipment and the like due to the current trend of rising prices, and we are planning a business alliance for our China business. So we on the board are paying close attention to the validity of our investment amounts and ideas for recouping them, and advising revisions to the plan as needed.
The key point in realizing our long-term management vision is our speed in executing initiatives. I will evaluate the progress of each initiative under the current medium-term management plan and advise the executive team to expedite the plan-do-check-act cycle.

In my seventh year as an outside director, I feel the speed of change in the environment around Tsumura is accelerating. That means speedy decision-making has become more important than ever, and I feel time has been added to the risk factors in driving our businesses.
I think we can make regular board meetings more effective by narrowing the discussion topics. For unexpected events and those needing urgent attention, timely discussions are essential, even online when necessary, rather than limiting ourselves to regular board meetings.
To help realize Tsumura’s long-term management vision as a member of the Audit and Supervisory Committee, I will audit and oversee board meetings to ensure adequate and appropriate discussion on given agenda items. Then as an outside director, I want to help energize board discussions. Tsumura always treats each agenda item honestly and carefully in deliberations. This can be both a blessing and a curse depending on the situation, so I’ll watch to be sure the board isn’t getting in the way of businesses going forward.