The group focuses on the reliability of financial reporting, discloses appropriate financial information based on the following basic policies, and practices transparent and sound corporate management.

1. We will ensure transparency and fairness by disclosing financial reports prepared following the generally accepted accounting standards in a timely manner.
2. We will implement measures to maintain and improve the accounting and financial expertise of the departments responsible for financial reporting.
3. All officers and employees shall fully recognize the importance of internal control over financial reporting. They shall strive to appropriately maintain and operate the basic elements of internal control (control environment, risk assessment and response, control activities, information and communication, monitoring, and IT support) within the scope of their authority and responsibility.
4. We will regularly and continuously assess the status of the design and operation of the internal control system to ensure its effectiveness.

The KOA SHOJI HOLDINGS Group will practice our corporate philosophy of "The Best Partner for Generics" and strive for mutual sustainable development with our suppliers in Japan and overseas.
In our procurement activities, we are strongly aware of our social mission as a company deeply involved in people's lives and health, and promote sustainable procurement based on our Basic Procurement Policies.

1. Ensure Compliance: We will comply with all laws, regulations, codes of conduct, and their spirit, conduct sound transactions based on fair, just, and free competition, and promote procurement activities with high ethical standards.
2. Assurance of Quality: We will promote procurement activities aimed at ensuring high quality and safety in order to provide a stable supply of reliable pharmaceutical products.
3. Fair and Equitable Transactions: We will build partnerships based on trust with suppliers and promote fair, equitable, and transparent procurement activities.
4. Environmental Preservation: We will promote procurement activities that take environmental preservation into consideration, including prevention of environmental pollution and reduction of environmental impact.
5. Respect for Human Rights and Consideration for Labor Environment, Health and Safety: We will respect the human rights of all people, eliminate child labor and forced labor, and promote procurement activities that consider the labor environment and health and safety.
6. Appropriate Protection and Management of Information: We will thoroughly protect and manage various types of information obtained through our procurement activities to build relationships of trust with our suppliers.

We will enhance our corporate value and contribute to the realization of a sustainable society by promoting business activities while sincerely addressing various social issues as a company deeply involved in people's lives and health.

1. We are aware of our responsibilities, as our company plays a pivotal role in the pharmaceutical industry, and will contribute to people's health by delivering reliable pharmaceuticals.
2. We recognize the need to focus on the human rights of all people and the global environment in the course of business activities. We will contribute to creating a healthy future for people and the planet.
3. We will strive to create an environment rich in equality and diversity by offering the opportunity to enhance qualifications and an employee-friendly environment.
4. We will conduct fair and highly transparent management with high ethical standards and a strong sense of responsibility to meet our social obligations.
5. We will strive to enhance our corporate value and resolve social issues through mutual trust and constructive dialog with stakeholders.

The Group's corporate philosophy is to be "the best partner for generics." The Group imports and sells generic drug ingredients, and develops, manufactures, and sells generic drugs.
Appropriate management of information assets in the Group's business and operations is important not only to win the trust of our business partners, but also to ensure that patients can use our pharmaceuticals with peace of mind.
The Group shall establish the following Basic Policy of Information Security and is committed to thorough implementation of the policy.

【Information Security Initiatives】

1. We will appropriately manage information related to pharmaceutical raw materials and the development, manufacture, and sale of pharmaceutical products following the Pharmaceutical Affairs Law and other related laws and regulations and provide information related to raw materials to pharmaceutical manufacturers, distributors, and pharmaceutical manufacturers.
2. We will establish a company-wide information security system and systematically strengthen information security.
3. We will provide continuous information security education to Group employees, ensure compliance with relevant internal rules, and take strict action against those who violate these rules following internal rules.
4. We will implement appropriate information security measures to ensure a prompt response in the event of a problem.
5. We will manage the status of our information security and strive for continuous improvement.

KOA SHOJI HOLDINGS Co., Ltd. recognizes that the strict protection of specified personal information is an important social responsibility and has established the following basic policy to ensure its proper management.

1. Scope and System for Handling Specified Personal Information.
   The company will specify the scope of operations that will handle personal numbers and the scope of specified personal information (personal numbers used in operations, personal information managed in association with personal numbers, names, dates of birth, etc.), and will specify the person in charge of handling operations. Additionally, we will formulate rules for handling specified personal information and establish a system for handling specified personal information.
2. Safety Management Measures
   With respect to safety management measures for specified personal information, the company shall take necessary measures to prevent leakage, loss, or damage to specified personal information and to manage specified personal information appropriately.
   When outsourcing the handling of specified personal information to a third party, we will obtain prior approval from the relevant departments, select a contractor with an adequate management system, and provide the necessary and appropriate guidance and supervision.
3. Compliance with relevant laws, regulations, guidelines, etc.
   The company shall comply with laws regarding personal information and specified personal information, guidelines established by the government and ordinances for the proper handling of specified personal information (business operator version), and other norms, and shall handle specified personal information, appropriately.
4. Contact for inquiries regarding specified personal information, etc.
   The company establishes a system to respond appropriately and promptly to complaints and inquiries from individuals regarding the handling of specified personal information.
   This policy shall be thoroughly communicated to all company employees and shall be made public outside the company. In addition, we will strive to maintain and improve awareness of the protection of specific personal information by educating and enlightening our employees and raising the awareness of our in-charge representative in the office.