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April 27, 2022

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• The Company has adopted its Corporate Concept, “to give first thought to patients and their families, and to increase the benefits that health care provides to them” (hhc: human health care), in its Articles of Incorporation, and has been sharing this Corporate Concept with the Company’s stakeholders.

• The Company has shifted its perspectives in the new mid-term business plan, “EWAY Future & Beyond”, launched in April 2021, widely enlarging the targets for its efforts from the conventional “patients and their families” to “patients and the general public”, and has been working on the creation of solutions to contribute to people with “empowering people to realize their fullest life” as the vision.

• The Company is aiming to establish an ecosystem model as a business model to realize this concept and aspiration as described above.  The ecosystem is a system enabling a variety of different living beings to co-exist in a certain environment and to develop in collaboration with each other.  The Company, as a core of the system, is not only creating drugs in collaboration with academia and venture businesses, but also building the EUP (·¬ÇÑÓ°ÊÓ Universal Platform) as a platform where a variety of solution packages are created and delivered, based on data including clinical data and biomarkers.

• The solutions created by the EUP will provide significant synergistic effects to other industries.  The Company believes that the enlargement of the scope of people to whom the Company provides values and contributions, and the establishment of the ecosystem, will enable not only the Company but also other industries to provide the people with better products and services, which will lead to the enhancement of contributions through provision of values.  The Company is aiming at being an “hhceco” company, which will realize the business model combining its Corporate Concept, hhc, and the ecosystem.

• Furthermore, the Company focuses on the reduction of health disparities and continues to engage in initiatives to improve access to medicines, including the free-of-charge provision of drugs for the treatment of lymphatic filariasis. In research and development of drugs for the treatment of tropical diseases as well, we are building rich pipelines through various partnerships. The Company will not spare any efforts to deliver hope and our products to people in the daily living and medical domains.

• However, taking into consideration the competitive challenges surrounding the Company’s business as well as the developments and changes in Japan’s legal system and corporate culture concerning company acquisitions, the Company believes that it can face an acquisition which will have a material impact on the Company’s business policy.

• Needless to say, the Company has no intention to reject any acquisition which seeks to acquire a significant number of the Company’s shares or to get involved in the Company’s management, to the extent that it will largely increase the Company’s corporate value.

• Therefore, the Company, as one of Japan’s original innovative companies, believes that (i) the hhc concept and the existence of employees motivated to achieve that concept, (ii) knowledge creation activities (hhc activities) to realize that concept, and (iii) business development to efficiently achieve social good (seeking to relieve anxiety over health and reduce health disparities) are the fundamental drivers of the Company’s corporate value, and that those who control the determination of financial and business policies of the Company need to understand these fundamental drivers in making efforts to secure, enhance and increase the Company’s corporate value and the common interests of shareholders of the Company from mid- to long-term perspectives.

• In the event of a takeover proposal or purchase which is likely to damage the Company’s corporate value and the common interest of shareholders, the Company will ensure time period and information necessary for shareholders to consider such takeover proposal or purchase and, as necessary, adopt and implement any and all applicable appropriate measures, including but not limited to so-called takeover defense measures, to protect the Company’s corporate value and the common interests of shareholders.

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