November 28, 2014
Mitsubishi Tanabe Pharma Corporation

Notice regarding conclusion of the final agreement for the transfer ofthe Kashima Plant of Mitsubishi Tanabe Pharma Factory Ltd.
On November 28, 2014, Mitsubishi Tanabe Pharma Corporation (Head Office: Osaka; President andRepresentative Director: Masayuki Mitsuka) concluded the final agreement with Sawai
Pharmaceutical Co., Ltd. (Head Office: Osaka; President and Representative Director: MitsuoSawai) regarding the transfer on April 1, 2015, of the Kashima Plant of Mitsubishi Tanabe Pharma
Factory Ltd. (Head Office: Osaka; President and Representative Director: Satoru Kuraoka), which isa consolidated subsidiary of Mitsubishi Tanabe Pharma. The basic agreement was concluded withSawai Pharmaceuticals on June 30, 2014.
1. Reason for the transfer
To respond to the rapidly changing business environment and record sustained growth, Mitsubishi
Tanabe Pharma is aggressively “Accelerating Operational and Structural Reforms,” one of thestrategic challenges in the Medium-Term Management Plan 11–15 ~ New Value Creation. In
manufacturing, Mitsubishi Tanabe Pharma is working to consolidated and reorganize its
manufacturing bases, to establish a global-level new drug supply system, and to build a flexible,
efficient manufacturing system that is less susceptible to the influence of changes in the operatingenvironment. Accordingly, in August 2013 the Company announced that it would consolidate its
five domestic manufacturing bases into two bases.
As one facet of those initiatives, the Ashikaga Plant was transferred in April 2014. Subsequently, atthe end of June 2014, the Company reached a basic agreement with Sawai Pharmaceutical for thetransfer of the Kashima Plant. The Company determined that the transfer of the Kashima Plant toanother company would maintain local employment, and the plant’s technical capabilities andproduction capacity would be utilized to advance the plant’s development. Consequently, theCompany and Sawai Pharmaceutical have now concluded the final agreement regarding the transfer.
Sawai Pharmaceutical, a leading company in the generic drug business, has announced“Strengthening of a stable supply system of high quality products by increasing production capacity”
as one of the key strategies in its Medium-Term Business Plan. Sawai Pharmaceutical has positioned
the transfer of the Kashima Plant as a central initiative under this strategy. The transfer is expected tocontribute to an increase in the plant’s production capacity and to the leveraging of the plant’s
advanced technical capabilities and sophisticated quality control.

1

On the other hand, Mitsubishi Tanabe Pharma will take steps to enhance its domestic production
system, adding new buildings and other facilities to the consolidated plants at Onoda and Yoshitomi.
Following the closure of the Osaka Plant, at the end of March 2018 Mitsubishi Tanabe Pharma will
have a two-plant system. The Company will work to build a flexible, efficient manufacturing systemthat is less susceptible to the influence of changes in the operating environment.
2. Method of the transferOn April 1, 2015 (planned), through a company split of Mitsubishi Tanabe Pharma Factory Ltd., thepharmaceutical manufacturing operations associated with the Kashima Plant will be transferred toSawai Pharmaceutical.
After their approval is obtained, the employees of the Kashima Plant will be transferred to Sawai
Pharmaceutical, where their employment will continue. In addition, after the transfer of the KashimaPlant, plans call for Sawai Pharmaceutical to continue to produce the Company’s products on acontract manufacturing basis.
3. Overview of the parties to the transfer and the Kashima Plant• Mitsubishi Tanabe Pharma Factory Ltd.
Head Office: 2-6-18, Kitahama, Chuo-ku, Osaka 541-8505, Japan
Representative: President and Representative Director, Satoru Kuraoka
Capital: ¥1,130 million (as of March 31, 2014)
Net sales: ¥47.2 billion (fiscal year ended March 2014)
Business activities: Manufacturing, sales/purchase, and export/import export of pharmaceuticals
Number of employees: 1,394 (as of March 31, 2014)
Production sites: Kashima Plant (see below)
Osaka Plant (3-16-89, Kashima, Yodogawa-ku, Osaka)
Onoda Plant (7473-2, Oaza-Onoda, Sanyo-Onoda, Yamaguchi)
Yoshitomi Plant (955, Oaza-Koiwai, Yoshitomi, Chikujo, Fukuoka)• Kashima Plant, Mitsubishi Tanabe Pharma Factory Ltd.
Location: 14-1, Sunayama, Kamisu, Ibaraki
Plant manager: Akira Wada
Number of employees: 258 (as of March 31, 2014)
Production results: Approximately 230 million pills, approximately 33 tons of powders and granules, approximately
1.7 million syringes of injection drugs, etc. (fiscal year ended March 2014)• Sawai Pharmaceutical Co., Ltd.
Head office: 5-2-30, Miyahara, Yodogawa-ku, Osaka
Representative: President and Representative Director, Mitsuo Sawai
Capital: ¥27.1 billion (as of March 31, 2014)
Net sales: ¥89.8 billion (consolidated basis, fiscal year ended March 31, 2014)
Business activities: Manufacturing, sales, and export/import of pharmaceuticals
Number of employees: 1,121 (consolidated basis, as of March 31, 2014)

4． Overview of Reorganization of Domestic Manufacturing Bases
As of Start of Medium-Term Management Plan 11-15

Mitsubishi Tanabe Pharma Factory Ltd.

Ashikaga Plant

Kashima Plant

Osaka Plant

Onoda Plant

Yoshitomi Plant(Transferred April 2014)(To be transferred April 2015)(Planned to be closedMarch 2018)(Strengthening facilities forpharmaceutical ingredientsand injections)(Strengthening facilities forsolid dosage formulations)

As of April 2018 (planned)

Mitsubishi Tanabe Pharma Factory Ltd.

Yoshitomi Plant

Onoda Plant

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