Concerning systems for ensuring compliance with laws and ordinances and the Company’s Articles of Incorporation in the execution of duties by Directors and other systems for securing appropriateness of duties, the Company has resolved the basic policies at Board of Directors’Meeting held on March 31, 2017 as follows;

• The Company shall establish a compliance system by stipulating the Daiichi Sankyo Group Corporate Conduct Charter, Daiichi Sankyo Group Employee Code of Conduct, etc. as the code of conduct for Directors and employees and setting up a meeting body, including outside experts.
• The Company shall appoint Outside Directors for the strengthening and enhancing the function to supervise management.
• Audit & Supervisory Board Members shall audit the execution of duties by Directors, process and contents of decision making and the status of the establishment and implementation of internal control systems.

• The Company shall establish information security systems, and properly store and manage information relating to the execution of duties by Directors, including the minutes of Board of Directors, in accordance with laws, ordinances and internal regulations of the Company.

• The Company shall stipulate various internal regulations to establish risk management systems.
• The Internal Audit Department shall audit the status of operation of the systems mentioned above.

• TheCompanyshallformaManagementExecutiveMeeting-consistingofDirectorsexcludingOutsideDirectors, and executives appointed by the Chief Executive Officer(CEO) who are responsible for the main regions, corporate bodies and functions - which shall deliberate important matters for strategic decision-making by the CEO. The Company shall also set up an approval system as a means of decision- making.
• The Company shall introduce a corporate officer system in consideration of speedy decision making and execution of duties.

• The Company shall establish a compliance system by stipulating Daiichi Sankyo Group Corporate Conduct Charter, Daiichi Sankyo Group Employee Code of Conduct, etc. as the code of conduct for Directors and Audit & Supervisory Board Members and employees and setting up a meeting body, including outside experts.
• Vice Presidents responsible for the main regions, corporate bodies and functions who receive orders from the CEO in accordance with the “Daiichi Sankyo Group Global Management Policy” and persons in charge who receive orders from the President in accordance with the “Organizational Management Regulations” shall manage duties in their charge and supervise, manage and direct members of their business units.
• Each of the functions related to the improvement of systems concerning personnel management, risk management, etc. shall convey policies to manage and guide each department.
• The Internal Audit Department shall implement internal audit of the status of compliance with laws and ordinances, and the Articles of Incorporation and internal regulations.

• The Company shall establish “Daiichi Sankyo Group Global Management Policy” and “Internal Control System Establishment Regulations” to clarify the management control system of the Daiichi Sankyo Group, and transmit management policies, etc. to Group companies and set a system in place for receiving reports on management and financial results from the Board of group companies.
• The Company shall establish “Group Company Management Regulations” to clarify responsibilities and authorities of each group company.
• The Company shall establish “Daiichi Sankyo Group Risk Management Policy” to develop the Daiichi Sankyo Group risk management system.
• The Company shall establish Daiichi Sankyo Group Employee Code of Conduct, etc.
  to develop it to all Group companies and also arrange the Group’s compliance promotion system to keep all Group companies informed about it.
• The Company shall establish “Internal Control Regulations on Financial Reporting” and ensure the reliability of financial reporting by properly implementing those regulations.
• The Company shall establish “Internal Audit Regulations” and implement internal audit on Group companies.

• The Company shall appoint full-time staffs who assist with the duties of Audit & Supervisory Board Members.

• Full-time staff assisting Audit & Supervisory Board Members shall be independent of Directors, and shall execute duties under the directions and orders from Audit & Supervisory Board Members.
• Personnel changes, performance appraisal, etc. of full-time staff assisting Audit & Supervisory Board Members shall require prior consent of Audit & Supervisory Board.

• The Company shall establish a system under which when Directors find facts that could badly hurt the Company, they shall immediately report the facts to Audit & Supervisory Board Members.
• Audit & Supervisory Board Members of the Company shall receive reports on the status of execution of duties from executives and employees of the Company as well as executives and employees of Group companies.
• Audit & Supervisory Board Members of the Company shall attend the Management Executive Meeting and other important meetings.
• To verify process and details of approvals, the Company shall establish Audit & Supervisory Board Members as permanent recipients of approval document notification.

• Audit & Supervisory Board Members of the Company shall have meetings with Representative Directors on a regular basis to check management policies and exchange views concerning important issues related to auditing.
• Audit & Supervisory Board Members of the Company shall exchange information with Audit &Supervisory Board Members of the Group companies and closely cooperate with them.
• Audit & Supervisory Board Members of the Company shall coordinate and exchange views with external auditors and the Internal Audit Department.
• The Company shall not treat unfairly any person who reports under the second item in the preceding paragraph (i) or any person who reports according to Daiichi Sankyo Group Employee Code of Conduct, etc. because of the fact of such reporting.
• The Company shall bear expenses that may be occurred in executing the duties of Audit & Supervisory Board Members.

• The Company shall take a firm stance toward antisocial forces and organizations that threaten the order and safety of civil society. To prevent antisocial forces and organizations from being involved in the Company’s management activities and to stop such forces and organizations from harming the Company, the Company shall stipulate, as its basic policy, in the Daiichi Sankyo Group Corporate Conduct Charter, etc. that it shall thoroughly forbid relations with antisocial forces and organizations.
  In addition, the Company shall establish an organizational structure to that end, and strive to eliminate relations with antisocial forces and organizations through means such as collecting information in cooperation with the police and other bodies, and conducting activities to train Directors and other Officers, and employees.