Expanding employee stock ownership plans to all domestic subsidiaries.

The background behind the expansion of our employee stock ownership plan: Our commitment to human resources.

Since our founding, we have delivered beauty and health to many people through over-the-counter (OTC) pharmaceuticals and skincare cosmetics. Currently, we have expanded our business into food and Regenerative medicine, and are working towards the realization of a well-being society. Based on the belief that "when each employee is healthy in mind and body and works with vitality, it will ultimately lead to the development of a company that can contribute to society," we have implemented various measures for our employees from the perspective of welfare since our founding. In recent years, as our business areas have expanded and the number of group companies has increased, we established the "ROHTO GROUP Health Insurance Society" in April 2022 to create a system that provides more detailed support for the health of our employees and their families. Furthermore, we are now expanding our employee stock ownership plan, which has been operated for our own employees until now, to all domestic subsidiaries in order to further enhance employees' sense of participation in management. Moving forward, we aim to contribute to the well-being of society through the active participation of each and every group employee who works with health in mind and body and with vitality.

Overview of Rohto Group Employee Stock Ownership Plan

An employee stock ownership plan is a system in which employees purchase company stock by combining a fixed contribution deducted from their salary or bonus with incentives paid by the company.
Starting in April 2023, we will operate as follows:

• Target: All employees of domestic subsidiaries
• Incentive: 8% (7% until March 2023)

*For the 2023 fiscal year only, the incentive will be increased by 2%, making it a 10% incentive for purchases made between April 2023 and March 2024.

Unique initiatives for our employees (one example)

• "Rot Utopia" established (1959)

  Founded by then-President Teruo Yamada with the vision of "creating a company where employees look forward to coming to work every day = a utopia," the Osaka headquarters was equipped with groundbreaking facilities for the time, such as a lawn, a 50-meter swimming pool, and a pond, fulfilling the wishes of the employees.

• The holding of "birthday parties" and the presentation of "birthday presents" (from the late 1950s onwards)

  This initiative involves all employees celebrating the birthdays of employees born in that month, once a month. When it first started, the president would personally present employees with a handwritten birthday card, a whole birthday cake, and a commemorative gift around their birthday (currently, an original company birthday cake is given).

• Implementation of "family meetings" (late 1950s onwards)

  This event, held every April, invites employees and their families to the Osaka headquarters as a way for the company to express its gratitude to the families who support its employees.

• Establishment of the employee welfare facility "Smart Camp" (2004-)

  This employee welfare facility was created with the desire for each employee to take responsibility for their own health and be self-reliant. In addition to providing opportunities for improving dietary habits, it is also used as a place where employees can discuss their worries and anxieties.

• Health coin "ARUCO introduced (2019-)

  The company has a system in place to award its own internal currency (health coins) based on employees' daily step count, brisk walking time, participation in sports, and achievement of healthy lifestyle habits such as quitting smoking.