DHG Pharmaceutical : Sustainable Development Report 2022

DHG PHARMACEUTICAL JOINT-STOCK COMPANY - SUSTAINABLE DEVELOPMENT REPORT 2022

Sustainable Values

SHINING FAITH

DHG Pharma has gone through a long-standing period of nearly 50 years of development with a meaningful mission of serving the community on its journey of shaping and building its motto "For a healthier and more beautiful life". On that journey, so many values, even the smallest ones, are mindfully planted and nurtured by DHG Pharma every day so that today those values are widely spread. With that meaning, DHG Pharma has chosen the message "Sustainable values, shining faith" as the main theme for the 2022 Sustainable Development Report. The theme is closely associated with the noble

image of a diamond.

LIST OF

iamond - the image that symbolizes the SUSTAINABLE STRUCTURE D together with the ETERNAL VALUES and SHIRING, because only GENUINE VALUES will stand the test of time and be honored true to the value they bring. So is DHG Pharma, with its solid foundation and brand

reputation of nearly half a century and the values it has brought and well- established in the market. These are most apparent and convincing proofs of the value of the SHINING TRUST in the hearts of millions of customers. These, in turn, verify that DHG Pharma has excellently performed its role on the path of sustainable development and moving towards the future.

DHG PHARMA

SUSTAINABLE DEVELOPMENT REPORT 2022

04 Message of the Sustainable Development report

ABBREVIATIONS

1

CONTENTS

2

OVERVIEW

1. Overview of the Sustainable Development report

1. DHG Pharma at a glance

1. Management towards sustainable development

1. Corporate governance

1. Code of conducts with stakeholders

1. Stakeholder engagement

1. Identifying material aspects

1. Person in charge of sustainable development programs

MATERIAL ASPECTS

50 Local economy

1. Procurement practices

1. Human resources

1. Customer health and safety

1. Journey to improve health and social responsibility

1. Environment

108 APPENDIX

120 GRI REFERENCE TABLE

In a context where the whole world underwent catastrophes of epidemics, natural disasters, wars, economic recessions, the whole community went through a harsh natural screening and filtering process through which each of us needs to recognize and appreciate more properly on the role and mission of sustainable development in business. Above all, such challenges seem to optimize our society's resilience and make people become stronger and more willing to change to better suit all contexts. Also, the core values of society, among which

strengths and perfecting the management system based on its fundamental values that can be summed up in four Cs:

the issues of Safety, Health, Environment, and Social Security get much closer attention from the public.

As for the case of DHG Pharma, by the end of 2022, the Company recorded the highest revenue and profit

rates in the 48-year history of development with

4,676

up 16.8% compared to 2021

988

up 27.3% compared to 2021

In addition to these impressive business results, DHG Pharma also achieved success in stabilizing employees' lives through maintaining their jobs and incomes, and serving the public with measures for protecting people's health. More outstanding, the Company's strategic goals have been

CHANGE

CHANCE

4C

CHALLENGE

CHARGE

Everything in the world is changing constantly, forcing us to change our thinking to renew ourselves.

New opportunities only come when we accept changes, are willing to accept them and confidently seize them.

Overcoming challenges is a way for us to maintain stable development in the present and grow even stronger in the future.

Initiatives and self-control in work, self- recognition of problems and a high spirit of responsibility for the work each person undertakes are the best ways to make things more professional and efficient.

Dear shareholders, partners, customers and all employees!

We have gone through a period of difficult economic times together with a wonderful spirit of unity to overcome all challenges, and today the first thing I would like to say is to send my deepest gratitude to everyone for your meaningful support that has made a strongly-grown DHG Pharma as it is

outlined with a clear orientation towards the implementation of policies focusing on environmental protection.

At the COP26 event taking place in the UK at the end of 2021, Vietnam officially announced its commitment to achieve net zero emissions by 2050. In such a context, DHG Pharma is fully aware of its responsibility and important role in contributing to this commitment of the country. Climate change and global warming affect us all and each of us should take responsibility; as such DHG Pharma has taken specific measures to support this movement through practical actions. DHG Pharma has signed cooperation agreements with the Green Yellow Vietnam for implementing the Rooftop Solar Power Project with a total capacity of 2.7 MWp for the plant in Tan Phu Thanh Industrial Park, Chau Thanh A District, Hau Giang

When the above messages are conveyed and spread every day to each member of the big family of DHG Pharma, I strongly believe that over time, it is our enthusiasm and passion that will bring amazing miracles. Entering 2023, we still have much work to do and many obstacles to overcome together. Yet, in any situation, we each need to firmly keep in mind the word "Heart" for those who have a mission to serve for the health of the community. This is the true path we have chosen and followed for the long-term sustainable development. More importantly, staying firm and strong in the face of new challenges will help us maintain our position as the No. 1 Pharmaceutical Company in Vietnam.

Everything starts with trust, and we respond to your trust with its true values. We appreciate and are grateful for your companionship with DHG Pharma so far and we truly hope to continue to welcome your enthusiastic support in the future.

Wishing you health, happiness and success.

today.

Province. This opens a new chapter of the Company's vision for sustainable development.

TOSHIYUKI ISHII

General Director

OVERVIEW OF

The Sustainable Development report

Pharma's sustainable development activities in line with the Company's sustainable strategic orientation in the year.

METHOD OF DEFINING REPORTING CONTENTS

Based on the monitoring and measurement management systems as well as reports, DHG Pharma develops the

The content of the report demonstrates DHG Pharma's approach to sustainable development issues such as commitments to stakeholders, medium and long-term sustainable development strategies, product commitment, etc. All are prerequisites to the Company's sustainable strategy with the desire to bring a life not only healthy but also sustainable.

sustainable development report based on:

• The latest GRI standards by Global
  Sustainability Standards Board (GSSB).
• The Guidebook for Environmental and Social Information Disclosure conducted by the State Securities Commission (SSC) in collaboration with IFC (International
  Finance Corporation).

Economy

Society

Environment

SCOPE OF THE REPORT

Reporting period: The SDR 2021 is prepared in accordance with the accounting year, starting from 01 Jan 2022 to 31 Dec 2022. The SDR is separated from the Annual Report and has the same reporting period with the 2022 Annual Report.

Latest report: 31 Dec 2021

Reporting cycle: Annually

Scope of the report includes:

• DHG Pharma's factory in Cantho
• DHG Pharmaceutical Plant Branch in Hau Giang
• 34 branches and 3 central warehouses in provinces and cities across the country (personnel, salary and bonus figures)
• 01 representative office in Ho Chi Minh City.

CONTACT INFORMATION

DHG Pharma is making efforts to satisfy the expectations of stakeholders in terms of information transparency and sustainable growth in business, and demonstrating corporate responsibilities to the community. Therefore, we look forward to receiving your sincere comments. All suggestions, questions about sustainable development issues, please send to the address below:

www.dhgpharma.com.vn (Contact section)

02923 891 433 (Ext: 242)

Ms. Le Thi Hong Nhung (hongnhung@dhgpharma.com.vn)

Finance Director