Responsibility

Ways of Working

The information on this site is intended to be useful and informative for stakeholders of Kyowa Kirin International. Please note that Kyowa Kirin International cannot guarantee the information is accurate and it shall not be liable for any losses or damage that anyone may suffer as a result of relying on this information. The information may be changed by Kyowa Kirin International at any time.

We make no warranties, representations or give any undertakings either express or implied about any of the content of this website (including, without limitation, the timeliness and currency of the website.). You expressly agree that the use of this website and information obtained or downloaded from or through this website is at your sole discretion and risk.

Kyowa Kirin International’s Tax Strategy

The Kyowa Kirin International Group (the “Group”) is a rapidly growing specialty pharmaceutical group engaged in the development and commercialisation of prescription medicines. The Group is focused on the EMEA region and is a 100% subsidiary of Tokyo-based Kyowa Kirin Co. Ltd.

In all undertakings, including tax, the Group conducts itself in line with its values of commitment to life, innovation, integrity and Wa (which in Japanese means harmony and teamwork).

Commitment to life

The Group recognises that in each of the jurisdictions in which it operates, the taxes raised are a significant, and direct, contributory factor to the local government’s ability to influence the well-being and health of those who live there. The Group adopts a prudent approach to tax planning and does not engage in aggressive or artificial tax planning schemes. The Group has a tax function that is intended to support the business and not to lead the business. This approach is key to ensuring that the substance of the business determines its tax footprint.

Innovation

The Group is fully committed to the implementation of the BEPS recommendations and keeping abreast of international tax developments. The Group seeks to proactively utilise technology and digitization to ensure compliance.

Integrity

The Group seeks to take advantage of such tax reliefs and allowances as are made available to it by governments or fiscal authorities and seeks to apply reliefs in a manner consistent with the letter and spirit of the relevant legislation. Where appropriate the Group seeks Advance Pricing Agreements with the relevant tax authorities to provide both transparency and certainty to our affairs.

It is The Group’s intention to have little more than a minimal level of tax associated risk present within the Group and whilst some risk will inevitably arise, the Group will seek to find certainty in respect of this within a short but appropriate timescale.

As part of our tax governance processes, we rely upon our in-house tax team, a network of external experts and our relationships within the industry to allow us to ensure our approach remains in line with best practice. Reviews of our processes, procedures and outputs are performed by internal and external auditors and all material tax positions require sign off by senior managers or directors. Our in-house tax team are suitably qualified for their roles and are supported with regular training.

Teamwork/Wa

The Group engages with HMRC in an open and constructive manner with regular dialogue between the Group Tax Manager and our HMRC Customer Compliance Manager allowing for any areas of disagreement or points of interpretation to be resolved on a timely basis. Where available the Group will seek clearance and confirmation from HMRC to provide certainty of tax treatment on any significant transactions.

The Group will continue to strengthen and deepen our relationships with HMRC (and her overseas equivalents) to allow for clarity and predictability in our tax affairs.

This policy is reviewed annually and applies to all companies within the UK Group1. The Group regards this publication as complying with the duty under para 19(2) Sch19 FA2016. This strategy is applied throughout the wider Kyowa Kirin International Group and is adopted in the UK by the board of KKI plc on an annual basis, corresponding to the relevant accounting period.

It was last approved by the Board of KKI plc on 13 December 2022 and published on 29 December 2023, and reflects the strategy applied during the year ended 31 December 2022. It is foreseen that this strategy will also be applied for the year ended 31 December 2023 and will be published as such during that year.

This policy applies to the following companies, Kyowa Kirin International Plc, Kyowa Kirin Pharmaceutical Development Limited, Kyowa Kirin Services Ltd, Kyowa Kirin Limited and Archimedes Pharma UK Limited. This strategy is consistent with the Kyowa Kirin Group Tax Policy implemented and applicable to the wider Group.

https://www.kyowakirin.com/sustainability/governance/taxpolicy/index.html

Section 172 (1) statement

Section 172(1) of the Companies Act 2006 requires the Directors of the Kyowa Kirin International plc (the ”Company”) to  act in the way they consider, in good faith, is most likely to promote the success of the Company for the benefit of its members as a whole, while also considering the broad range of stakeholders who interact with and are impacted by our business. In doing so, the Directors must have regard, amongst other matters, to the:

• likely consequences of any decisions in the long term
• interests of the Company’s employees
• need to foster the Company’s business relationships with suppliers, customers and others
• impact of the Company’s operations on the community and environment
• desirability of the Company maintaining a reputation for high standards of business conduct and
• need to act fairly as between members of the Company.

Throughout the year, the Directors have had regard to the factors set out above, as well as other factors relevant to the decisions being made. The Board acknowledges that every decision made will not necessarily result in a positive outcome for all stakeholders. By considering our Purpose and Values, together with our strategic priorities, the Board aims to ensure that the decisions made are consistent and intended to promote the Company’s long-term success.

The ways in which the Directors have addressed the matters set out in section 172(1) (a) to (f) when performing their duties are summarised below:

Long Term results

The Board in conjunction with the Company’s sole shareholder. Kyowa Kirin Co., Ltd, recognises the importance of the future of the group’s offering of Pharmaceutical products and therapies and the level of expenditure on research and development required to promote the long-term interests of the Company. The matters considered by the Board in conjunction with Kyowa Kirin Co., Ltd in this regard include: (i) pipeline planning (ii) budgets for research and development and for marketing (iii) dividend policy.

Employees

The Board strives to maintain and develop a culture where everyone feels valued and included. The Board has engaged with employees via a variety of channels. Regular “Town Hall” meetings have taken place, both virtually and in-person, where the Board has shared its strategic vision, where employees are able to learn about the patient journey and where Q&A sessions are delivered. Feedback from employees is actively encouraged and is considered a key driver in developing our business activities, processes and workplace environment. Initiatives to encourage wellbeing are well established and continue to evolve and are strongly influenced by the workforce. Professional and personal development of employees is viewed as fundamental to the continued success of the Company and our revised Development & Performance Management initiatives seek to promote this.

Suppliers, customers and others

The Board recognises that as a pharmaceutical company it is crucial that we deliver a reliable service to our customers and patients. Following Brexit, changes to the regulatory environment have created additional challenges to ensuring the supply of medicines to patients across the regions in which we operate. To ensure continuity of service, we have developed new business models, revised the way we work with suppliers and partners and fostered new relationships. Strong relationships with suppliers are crucial to ensure a continuity of service to our patients.

As a pharmaceutical company it is essential that we fully comply with regulations across a variety of territories. The Board regards compliance with the upmost importance and this message is delivered and followed by all facets of the business. Internal Audit and Compliance functions report to the Board on a regular basis and strong Whistleblowing policies have been adopted. Training and monitoring is continually developed and open communication between the Board and stakeholders is encouraged.

Community and environment

The role of the Company in supporting the communities in which we operate is a consideration in the Board’s decision-making. It is recognised that climate change is of considerable importance and as such the business continually reviews the way it operates with regards to our carbon footprint. Kyowa Kirin has a wide-ranging global presence. The necessity of air travel between Kyowa Kirin sites is always considered carefully.

The Company and our employees engage with groups, projects and charities to help achieve successful outcomes for local communities.

Our Reputation

As a responsible business, we aim to be a force for good and to have a positive impact on the people, societies and places with whom and which we interact. The Board periodically reviews the continuing suitability of the frameworks underpinning our high standards of business including a range of policies and standards and our ‘business’ corporate governance structure. Such policies and standards include: (i) codes of conduct; (ii) anti-corruption and bribery policies; and (iii) our internal risk procedures.

Fairness between shareholders

The Company’s sole shareholder is Kyowa Kirin Co., Ltd. Our corporate governance structure ensures that regular and constructive dialogue takes place  between the Company and Kyowa Kirin Co., Ltd in order to promote the long-term success of the Company

Speak Up Line

Kyowa Kirin is an organisation with strong values of integrity, innovation and teamwork (Wa).

We are committed to an environment where open, honest communications are the expectation, not the exception. As an individual connected to Kyowa Kirin, we want to ensure that you are able to communicate with us directly should you believe that we are not living up to our values in any respect but particularly encourage reporting where a violation of a law, regulation or compliance standard may have taken place.

We encourage all who work or engage with us to report any matters of concern freely and openly at the earliest possible opportunity.

To do so anonymously, we encourage staff and contractors to use this “Speak Up” line, hosted by a third party provider, EthicsPoint.

The information you provide will be sent to us by EthicsPoint on a totally confidential and anonymous (if you should choose) basis. You have our guarantee that your comments will be heard and actioned appropriately.

Click here to access our Speak Up Line

Do not use this line for the following:

• Reporting any adverse events following use of Kyowa Kirin products or product quality complaints. These should be reported to local medical safety lines. See local Kyowa Kirin contact pages for contact details.

Contacting Kyowa Kirin to exercise your rights as data subjects. Contact KKIDPOoffice@kyowakirin.com instead.

Third Party Code of Conduct

We believe a strong relationship with our business partners and suppliers (our “third parties”) is key to achieving our mission to make people smile.

To support these relationships, we have created our Third Party Code of Conduct. Our intention is that it enables a mutual understanding of our company's core values and beliefs, as well as the standards we expect our third parties to uphold.

Click here to access our Third Party Code of Conduct