FY2011(Fiscal Year Ended March 31, 2012)

Financial Results Presentation
Eisai Co., Ltd.

May 15, 2012

Safe Harbor Statement

1•

Materials and information provided during this presentation may contain so-called “forwardlooking statements.” These statements are based on current expectations, forecasts andassumptions that are subject to risks and uncertainties which could cause actual outcomes andresults to differ materially from these statements.

•

Risks and uncertainties include general industry and market conditions, and general domestic
and international economic conditions such as interest rate and currency exchange fluctuations.
Risks and uncertainties particularly apply with respect to product-related forward-looking
statements. Product risks and uncertainties include, but are not limited to, technologicaladvances and patents attained by competitors; challenges inherent in new productdevelopment, including completion of clinical trials; claims and concerns about product safety
and efficacy; regulatory agency’s examination period, obtaining regulatory approvals; domestic
and foreign healthcare reforms; trends toward managed care and healthcare cost containment;
and governmental laws and regulations affecting domestic and foreign operations.

•

For any forward-looking statements the Company cannot guarantee the actual outcomes andresults.

•Also, for products that are approved, there are manufacturing and marketing risks anduncertainties, which include, but are not limited to, inability to build production capacity to meetdemand, unavailability of raw materials, and failure to gain market acceptance.

•

The Company disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise.

•This English presentation was translated from the original Japanese version. In the event of
any inconsistency between the statements in the two versions, the statements in the Japaneseversion shall prevail.

FY2011 Consolidated Financial Results(Billion Yen, %)April – March 2011
Results%

April – March 2012
Results%

YOY

Net Sales

768.9

100.0

648.0

100.0

84

Cost of Sales

167.8

21.8

173.4

26.8

103

Gross Profit

601.1

78.2

474.6

73.2

79

R&D Expenses

145.0

18.9

125.1

19.3

86

SG&A Expenses

343.0

44.6

253.7

39.1

74

Operating Income

113.1

14.7

95.7

14.8

85

Ordinary Income

105.2

13.7

90.0

13.9

86

Net Income

67.4

8.8

58.5*

9.0

87

Cash Income

120.0

107.7*

90

Cash income is the total amount of cash available for investments for growth, business development, dividend payment, and repayment of borrowings, etc.
Cash income = Net income + Depreciation of PP&E and Amortization of intangible assets + In-process R&D + Amortization of goodwill + Loss on impairment(including loss on devaluation of investment securities)
FY2011 average exchange rates: U.S.$ = 79.08 yen (YOY –7.7%), Euro = 108.97 yen (YOY -3.7%), GBP = 126.22 yen (YOY -5.2%)*Including 7 billion yen impact of tax rate change due to amended corporate tax law published in December 2011.
2

Sales of Oncology Franchise Products
Steady progress of franchise transformation(Billion Yen, %)Apr.-Mar.
2011
Results

Halaven2.2

100%

Apr.-Mar.
2012
Results

22%YOY

16.0*1

739
[784]

21%

27%

2%

6%

4%
20%

12%

Symbenda/
Treakisym*2

0.8

3.2

405
[405]

Aloxi

34.6

34.5

100 [108]

Dacogen

16.2

17.3

107 [116]

14%

Fragmin

16.4

13.9

85 [92]

2%

9%

Others

10.2

8.2

81

31%

29%

FY2011Plan"HAYABUSA"(FY2015)

Oncologyrelated
products
Total

80.3

93.1

50%

10%
2%

22%

43%

116 [125][ ] based on local currency*1 Halaven sales in the U.S. is $137M*2 Symbenda was launched in September 2010 in Singapore;
Treakisym was launched in December 2010 in Japan;
Symbenda was launched in October 2011 in South Korea

 Oncology-related products grew by 25%*3, accounting for14.4% of consolidated sales*3 based on local currency
3

23%

0%

FY2010

Neuroscience

Epilepsy

Oncology

GI/LiverImmunology/Allergy

Other branded products

Rapid Increase of the Oncology Franchise Sales Ratio

Transition of the oncology franchise sales ratio
25%

20%

Expansion of Halaven’s
proposed additional
indications
Contribution by farletuzumab
and lenvatinib

Halaven launches in
Europe, Japan, andSingapore

15%

Halavenlaunch in
the U.S.

10%

22.0%
14.4%

9.7%

9.9%

FY2008FY2009

10.4%

5%

4

FY2010FY2011Plan"HAYABUSA"(FY2015)

Sales of Aricept and Pariet/AcipHex

East Asia grows steadily even in the era of mega-competition

Aricept
Apr.-Mar.
2011
Results

Pariet/AcipHex(Billion Yen, %)Apr.-Mar.
2012
Results

Apr.-Mar.
2011
Results

YOY(Billion Yen, %)Apr.-Mar.
2012
Results

YOY

East Asia[Japan*1]

110.8[105.5]113.8[108.3]103[103]

East Asia[Japan*1]

63.2[60.2]

63.6[60.9]

101
[101]

U.S.
[$ million]

153.4[1,790]11.4[144]*2

7
[8]

U.S.
[$ million]

65.6
[765]

55.9
[707]

85
[92]

Europe

24.4

20.1

83
[86]

Europe

6.4

5.2

81
[84]

New Markets &
ASEAN

1.8

1.7

95
[102]

New Markets& ASEAN

1.8

1.7

96
[103]

Total

290.4

147.1

51 [51]

Total

136.9

126.4

92 [96][ ] based on local currency*1 Japan pharmaceutical business*2 U.S. includes the sales of Aricept 23mg ($51M) and the sales of AG(Authorized generic; $36M)
5[ ] based on local currency

Impact Analysis for Aricept LOE in the U.S.
Factor analysis of the changes in FY2011 operating profit (difference from previous year）(billion yen)
150
Efficient use of R&D expenses(including appreciation of yen)
Growth of oncology franchise
and East Asia businesses

100

Impact oforganizational streamlining

50
Reduction ofalliance fees
0

Decrease inoperating profit-50

Impact ofAricept LOE
in the U.S.

-100

-150

Reduction of alliance fees and growth of oncology franchise/East Asia businesses
minimized the impact of the LOE in the U.S. at the FY2011 operating profit level
6

Sales by Segment

Regional transformation is on track of
the plan “HAYABUSA” trajectory(Billion Yen, %)Apr. – Mar.
2011
Sales

100%

5%
1%
6%

Apr. – Mar.
2012

%

Sales

%

3%

6%
7%

4%

1%

7%

YOY

East Asia*[Japan]375.7[350.4]48.9[45.6]

400.4[372.6]

61.8[57.5]

U.S.*

303.0

39.4

157.4

24.3

Europe*

44.4

5.8

42.2

6.5

New Markets &ASEAN*

6.9

0.9

7.2

1.1

ReportingSegment Total

730.1

94.9

607.1

93.7

Others

38.9

5.1

40.9

6.3

107
[106]

52
[56]
95
[99]
103
[109]
83
[85]

24%

23%

62%

63%

FY2011Plan"HAYABUSA"

39%

50%

49%

105
0%

Consolidated
Sales

768.9

100.0

648.0

100.0

84
[86]

[ ] based on local currency*Pharmaceuticals Businesses of East Asia, U.S., Europe, and New Markets and ASEAN
7

FY2010

East Asia
EuropeOthers(FY2015)U.S.
New Markets & ASEAN

Profit by Segment
Improvement in profit margin of pharmaceutical business(Billion Yen, %)April – March 2011
Segment
ProfitApril – March 2012
Profit
Ratio%

Segment
ProfitProfit
Ratio

%

YOY

Difference
frompreviousyear

East Asia*[Japan]149.1[145.0]55.9[54.3]

39.7[41.4]

167.7[162.6]73.2[70.9]

41.9[43.6]

112
[112]

18.6
[17.6]

U.S.*[$ million]

94.4[1,101]

35.4

31.2

34.0
[429]

14.8

21.6

36
[39]

(60.5)[ (672) ]Europe*

4.7

1.8

10.6

7.1

3.1

17.0

152

2.5

New Markets &ASEAN*

1.0

0.4

14.4

1.0

0.4

13.9

100

(0)

249.2

93.4

34.1

209.8

91.6

34.6

84

(39.4)

17.7

6.6

45.6

19.3

8.4

47.3

109

1.6

14.8

85

(17.4)

Reporting Segment
Total
OthersR&D expenses &Non-allocated SG&A
expenses(153.8)

Consolidated
Operating Profit

113.1

8

(133.4)14.7

95.7*Segment profit from U.S. Pharmaceuticals Business in local currency was calculated based on average exchange rate
*Pharmaceuticals Businesses of East Asia, U.S., Europe, and New Markets and ASEAN

Value Creation in
East Asia

9

Continuing Value Creation for Alzheimer’s Disease
through Disease Awareness, Diagnosis, and Treatment with Aricept

Patient population
 Number of dementia patients in the world is estimated to increase by approx. 7.7 million every year*1(35.6 million in 2011; 65.7 million in 2030; 115.4 million in 2050)
 Market for AD treatment in Japan is expanding (123% YOY in FY2011)*2 AD patients in Japan: estimatedto be 3.07 million*3

Disease awareness Reinforcing disease awareness activities through public forums and proactive media exposure Further promotion of community building through supporting local network for AD

DiagnosisProgress of Alzheimer's Disease Neuroimaging Initiative (J-ADNI, US-ADNI)
Beta-amyloid image diagnostic drug in practice (U.S.)
Progress of diagnostic technology for biomarkers such as beta-amyloid in the blood/CSF
A new paradigm by early treatment and early diagnosis

Treatment with Aricept
 Only treatment available for full spectrum of AD 19 evidential reports of double-blinded clinical trials (including thesis on the New England Journal of Medicine*4)
 Innovation for new value creation in Japan:
Lewy body dementia (phase III ongoing); regressive symptoms associated with Down syndrome (inpreparation for development); dry syrup formulation (submitted); 23mg tablet (phase III ongoing); patch
formulation (phase I ongoing)*1 Dementia: A Public Health Priority – World Health Organization 2012
*2 Based on ©2011 IMS Japan, Source: JPM April 2011– March 2012

reprinted with permission*3 Estimate calculation based on population data for age 65 and above from national census in 2005 and incidence rate of Dementia from regional epidemiology

10

study in 2009-2010 by Ministry of Health, Labour and Welfare (Dmentia research project)
Showed that continued treatment with Aricept for 52 weeks was clinically beneficial to progressing AD patients*4 Robert Howard, et al. 2012;366:893-903.

Enhancing Patient Contribution and
Improving Profitability of Aricept
Enhancing patient contribution by AriceptEnhancing patient contribution and improving drug
compliance with Aricept to untreated AD patients (60%+

Improving profitability of Aricept
 Starting independent promotion of Aricept
in Japan on January 1, 2013of the AD patient population)Enhancing contribution to severe AD patients with
Aricept 10mg (FY2011: 16%*1 to FY2012 target at 23%)

Number of patients taking Aricept to thetotal AD patient population in Japan(million)

Image of the profit contribution ratio by Aricept

(%)

1

0.9

FY201111

FY2012
Target

FY2013
Target

FY2011FY2012
Target

FY2013
Target*1 Sales ratio of Aricept 10mg to the total sales of Aricept in Japan (Aricept 10mg in FY2011 increased by 148% YOY)New Treatment Option for Insomnia

Distinctive characteristics of Lunesta
Confirmed the following points from robust prescriptions in the U.S. and clinical trials in Japan:•••

Improvement in difficulty with falling asleep and staying asleep
Less carry-over effect (drowsiness, stagger, hyposthenia/headache, fatigue)
Data to show significant improvement of QOL from long-term clinical trials in Japan

FY2012 to FY2013

STEP1

Target: aim to be a first treatment choice in psychiatry (canbe prescribed for all insomnia including insomnia associatedwith psychiatric disorders)

Successfully launched Lunesta on April 18, 2012
- adopted by 26,000 institutions in the initial month

STEP2

FY2014 to FY2015
Target: aim to improve presence in all treatment
departments to be a top brand12

Continued Rapid Growth of New Products in Japan
Halaven:
Adoption in 1,000 intuitions is almost achieved (966 as of April 2012)
Adopted in 292 of 300 top-priority institutions(Billion yen)

Treakisym:
Seek expansion through additional indications

400
40

Humira:July 2011: obtained approval for juvenile idiopathic arthritis
September 2011: submitted an application for inhibition of structural damage ofjoints in rheumatoid arthritis
March 2012: submitted an application for ulcerative colitis

350
35
300
30

38.0

Lyrica:Submitted for fibromyalgia

250
25(Billion yen, YOY)

200
20
150
15
100
10

16.9

Next-generation
growth driver

FY2010Halaven-

FY2011

3.1

YOY

-

Change fromprevious year

3.1

50
5

Treakisym/Symbenda

0.8

3.2

409

2.4

0

Humira*

13.3

20.5

154

7.2

Lyrica(alliance revenue)

2.8

11.3

397

8.4

Total

16.9

38.0

225

21.1

FY201013

FY2011

Rapidly-Growing China Pharmaceutical Business(million RMB)
1,366

FY2011China
pharmaceuticalbusiness

1,106124%+ YOY
sales growth*

Proactive investment for
new product launches inareas of liver and oncology
Investmentforsustained
growthClevudine forchronic hepatitis B treatment tobe launched in FY2012

Investment in local businessdevelopment to accelerate
the growth

2010年度 2011年度
FY2010FY2011

Product line-up in FY2011 (16 products)
Aricept

ParietStronger Neo
Minophagen C /Glycyron

GlufastMethycobal

Selbex

KestineEldepryl

Increasing number of products
Expanding product line-up tosuit the regional needs
16
13

MyonalNeuquinon

GlakayFareston

Merislon

Eril

α-LiponHorxis10

FY200914FY2010FY2011FY2012FY2013

FY2014FY2015

Products Planned forMarket Launch in FY2012
Halaven in 7 countries
2Q (Ireland)
3Q (South Korea, Indonesia, Philippines)
4Q (Belgium, Hong Kong, Malaysia)

Perampanel in 6 countries
2Q (U.K., Germany, Austria)
3Q (Denmark)
4Q (Switzerland, Spain)

Lunesta
Insomnia treatment that improves difficulty with falling asleep and staying asleep:
launched in Japan

Careram
Novel disease modifying anti-rheumatic drug that inhibits production of
inflammatory cytokine and immunoglobulin: 2Q in Japan

clevudine
Chronic hepatitis B treatment with large market potential in China: 3Q in China

GliadelWorld’s only implant in the brain, sustained release formulation for brain tumor (malignant glioma) : 3Q in Japanlorcaserin
15

Obesity treatment with new mechanism of action to meet unmet needs in the U.S.: 4Q in the U.S.

Rise of Main Products
Under the Plan “HAYABUSA”

16

Growth Strategy For Halaven
FY2011(Billion Yen)

30

Approved in 35 countries worldwide
Achieved sales of 16 billion yen
Aiming for approvals in 50+ countries (plan) worldwide

20

FY2012 sales target of 28.5 billion yen
Expansion of sales in the U.S., Japan, and Europe

100Japan: Contributing to breast cancer patients through doctor-to-doctor
marketing; hosting forums for breast cancer patients
U.S.:
Branding strategies (advertising activities, promotional activities
targeted to KOLs, scientific meetings, etc.)
Europe: Currently reimbursing in Germany, UK, and Italy; to be reimbursed in
France and Spain
Distribution channels will be expanded into Central/ Eastern
Europe through PharmaSwiss SA

Disclose top-line results of clinical study for earlier lines ofmetastatic breast cancer
Global project team to develop product maximization strategies

17

Pursuing Evidences to Maximize
The Product Value of Halaven
Steady progress for proposed additional indications and the development of new formulation

Breast cancer(proposed additional indications)• First-line: in preparation for
discussion with regulatory
authority to initiate phase III study• Adjuvant, neoadjuvant: pilot
studies are ongoing• Combination with Eisai’s otheranticancer agent: in preparation
for phase II study

Liposomal formulation(new formulation development)
Safety and efficacy of Halaven is hoped to increase dueto the property of formulation that allows more efficientdelivery of the agent to tumor tissue to intensively attack
the cancer cells
In preparation for phase I study

Non-small-cell lung cancer(proposed additional indication)• Phase III study is ongoing
Soft-tissue sarcoma(proposed additional indication)• Phase III study is ongoing

Vessels hyperlucency in tumor tissue enables liposomal
formulation to penetrate to tumor tissue. Due to immature
lymphatic system, liposomal formulation accumulates in tumor
tissue. As a result, it can be distributed to human tumor tissue in
5-20 times higher concentration than the unencapsulated drug.
(original figure by Dr. Makiya Nishikawa, Associate Professor, Graduate School of
Pharmaceutical Sciences, Kyoto University, modified with permission)

1)
2)

18

Anti tumor activity was observed in preclinical in-vivo model,
which Halaven’s effect is hard to be observed
Approximately ¼ amount of compound indicated equivalent
antitumor effect in Halaven-sensitive preclinical in-vivo modelPerampanel “Fight Neuronal Hyperexcitation”
Adjunctive therapy for partial onset seizures
Europe: Response to Day 180 assessment report was submitted; regulatory
review is steadily progressing; expected to be launched in 1H FY2012
U.S.: Regulatory review is steadily ongoing; PDUFA action date on October 22;
expected to be launched in 1Q FY2013
Expanding areas: steady progress of submissions
Switzerland: submitted (July 12, 2011)
Russia: submitted (October 17, 2011)
Canada: submitted (February 29, 2012)
Indo-Pacific: in preparation for submission utilizing data obtained in the U.S. and Europe

Aiming for product value maximization of perampanel
Adjunctive therapy for refractory partial onset seizures (expected timing for market launch)
Europe2012

ASEAN & others

2013

2014

2015

U.S. &
EuropeASEAN & others

Primary generalized tonic-clonic seizures(expected timing for submissions)
19

Japan, China,
and Korea

U.S.

Perampanel “Fight Neuronal Hyperexcitation”
Number of patients with epilepsy (2010)
World: 50 million+*1
Japan, U.S., and Europe G5 countries (“G7”): 5.3 million*2
Efficacy

Novel mechanism of actionMechanism different from existing drugs

First-in-class agent to reduce neuronal hyperexcitation
associated with seizures by exclusively targeting glutamate
activity at postsynaptic AMPA receptors

perampanel

Non-competitively inhibit
AMPA receptor responsible
for fast excitatory neuraltransmission

epileptic discharge
Source: Meldrum BS. J. Nutr
2000; 130: 1007S-1015S
Adapted from Borges K,
Dingledine R. Glutamate andAddiction, 2003. [p 13; Fig 5]
Adapted from Dingledine R, etal. J. Physiol. 1986; 380: 175189. [p 179; Fig 2]

paroxysmal depolarization shift In patients with age of 12 years
old and above in refractory
partial onset seizures

Tolerability• 18-34% median reduction in
frequency of seizures (studies
304, 305, and 306)
• In patients in treatment withlevetiracetam and lamotrigine,
perampanel further reduced
seizures by 35% and 31%
respectively•

Approx. 90% of
adverse events wereconsidered mild tomoderate

Ease of use
Once-daily dosing

Up to 63% median reduction insecondarily generalized seizures

Physicians specialized in epilepsy showed interests*3 innovel mechanism of action, significant benefit, significant tolerability, and ease of use
20*1 WHO*2 internal estimates*3 2012 Quantitative Messaging Market Research with 451 Physicians across 6 countries.

FDA Advisory Committee Affirmed
Positive Benefit/Risk Profile
Anti-obesity agent: lorcaserin

 First-in-class selective serotonin 5-HT2c receptor agonist Targeted patients in clinical trials:
Patients who are obese (BMI: 30 and above) or overweight (BMI: 27
and above) with at least one weight-related co-morbid condition
 June 27, 2012: PDUFA action date
 Potentially expected for market launch in 4Q FY2012<Vote by Advisory Committee>
May 10, 201218 to 4 with 1 abstention
voted for potential benefit thanpotential risks＜Revised agreement to expand
commercial rights in Americas＞(target area)
Expanded to 20 countries throughout theAmericas, including the U.S., Mexico, Brazil,
and Canada

Obesity ratio for the total population in the U.S. in 2010 was 36%* (estimate: 101 million)
To provide a new treatment option for obesity where unmet medical needs exist*Source: Centers for Disease Control and Prevention
21

Innovation and Innovation(Value Creation by Innovation)

22Formula to Drive Innovation
Human-biology-based
Therapeutic
Hypothesis

H3B*1/ONC*2

× Modern Chemistry＝ Innovation
Compound library

Chromosomal translocationof RET genes

Neurology-focused
Oncology-focused
Natural derivatives
Diversity-oriented synthesis (DOS)ONC*2

Technology of antibody

Point mutation of SF3b genes

Association with anticancer
drug resistance of Hepatocyte
growth factor (HGF)/c-MET
Disease-associated Betaantigens
amyloidhypothesis
23

MOR*3
Folate receptor alphaendosialin

KAN*4

Chemokine

NSE*5
BACE

Target identification andvalidation from Human
biology
In vitro / In vivo
assay from human biology
Basic
Medicinal
Process

Chemistry

Biomarker researchCompanion diagnostic drugs*1 H3B: H3 Biomedicine, Inc., *2 ONC：Oncology Product Creation Unit (PCU) *3 MOR: Morphotek PCU,

*4 KAN: KAN PCU,

Lenvatinib
Pladienolide
derivatives

Golvatinib

Farletuzumab
MORAb-004
KANAb001(E6011)
E2609*5 NSE: Neuroscience PCU

Development Strategy Utilizing Human
Biology Hypothesis

Cases of lenvatinib, H3 Biomedicine, and farletuzumab
Lenvatinib(E7080)A unique receptor tyrosine
kinase (RTK) inhibitor
developed by Eisai

H3 Biomedicine
Create anticancer agentsbased on personalized
medicine by integrating
human genomics and DOS(Diversity Oriented
Synthesis) chemistry library

Promote clinical trials for NSCLC* patients with C-RET translocation
Some NSCLC* patients have fusion genes of RET gene. Abnormal phosphorylation of RET
kinase, one of lenvatinib’s targets, induces carcinogenesis
Aiming to realize efficient identification of target patients and high response rate
• Phase II study in NSCLC* patients is planned after patient stratification• Planning to develop a companion diagnostic agent that detects translocation ofchromosome (RET genes)• Detect translocation of chromosomes through deep sequencing technology

Accelerate target molecule identification and implement reliable validation for drug discovery
by leveraging Horizon’s technology platform which enables human biology-based assay
One of proprietary core drug discovery tools
by Horizon
Recombinant Adeno-Associated Virusmediated genome editing (GENESIS™*) for
precision functional genomics (endogenous
gene knock-in and knock-outs)

Farletuzumab(MORAb-003)
Humanized monoclonal
antibody targeting folate
receptor alpha (FRA)
developed by Morphotek
24

Breakthrough technology thatenables installation of genome
mutation in incommensurable
efficiency to targeted area
under physiological condition

Phase III study for platinum-sensitive ovarian cancer• Completed patient enrollment of 1100 in 30 countries worldwide• Aimed for simultaneous submissions in Japan, U.S., andDiagnostic kit to detect
FRA expression

Europe in 4Q FY2012

Diagnostic kit to detect FRA expression: commercialized for research incollaboration with Biocare Medicall, LLC
Rate of FRA-positive is over 90% in ovarian cancer patients; confirmed FRA expressions in
NSCLC* and already initiated clinical trial for NSCLC**NSCLC: Non small-cell lung cancer

Development Strategy Utilizing
Human Biology Hypothesis

Cases of MORAb-004, KANAb001 (E6011), and E2609
Confirmed tolerability and activity in several types of cancer in phase I study
Currently conducting 3 types of phase II studies including a study to identify
biomarkers which could potentially be a candidate for companion diagnostic
drug• Melanoma: phase IIa study is ongoing; completed patient enrollment• Colorectal cancer: phase II study is ongoing; expected to complete the study by the

MORAb-004
First-in-class humanizedantibody that targets tumor
endothelial marker 1(TEM-1)/endosialin developed by
Morphotek•

KANAb001(E6011)First-in-class humanizedmonoclonal antibody targeting
chemokine originated by KAN
Laboratories

E2609
Next-generation treatment for
Alzheimer’s disease aimed not
only for symptomatic improvement
but also for disease modification,by inhibition of BACE
25

end of FY2012
Sarcoma: in preparation for phase II combination study

Aimed as a first-in-class antibody drug to treat inflammatory bowel disease,
the agent is in progress in collaboration with Keio University, which was
designated as early and exploratory phase clinical trials site in the field ofrefractory immune diseases

Inflammatory bowel disease:
phase I study to be initiated in 2Q FY2012•••

Phase I study in healthy adults is completed:
Positive reduction effects of beta-amyloid in cerebrospinal fluid (CSF) andplasma were demonstrated in single and repeated administrations
Phase I study in patients with mild cognitive impairment (MCI) to be
initiated
Use of image diagnostic drugs for beta-amyloid is under consideration

Aiming for
Corporate Value Maximization

26

Forecast for
FY2012 Consolidated Financial Results(Billion yen, %)FY2011Results

FY2012%

Results%

YOY

Net Sales

648.0

100.0

610.0

100.0

94

Cost of Sales

173.4

26.8

176.0

28.9

101

Gross Profit

474.6

73.2

434.0

71.1

91

R&D Expenses

125.1

19.3

126.0

20.7

101

SG&A Expenses

253.7

39.1

221.0

36.2

87

Operating Income

95.7

14.8

87.0

14.3

91

Ordinary Income

90.0

13.9

82.0

13.4

91

Net Income

58.5

9.0

59.0

9.7

101

EPS （Yen）

205.3

207.0

ROE （％）

14.3

14.1

DOE （％）

10.4

10.2

Cash income

107.7

107.5

Dividend (Yen)

150

150

Cash income is the total amount of cash available for investments for growth, business development, dividend payment, and repayment of borrowings, etc.
Cash income = Net income + Depreciation of PP&E and Amortization of intangible assets + In-process R&D + Amortization of goodwill + Loss on impairment(including loss on devaluation of investment securities)
FY2011 average exchange rates: U.S.$ = 79.1 yen, Euro = 109.0 yen, GBP = 126.2 yen. FY2012 estimated exchange rates: U.S.$ = 80 yen, Euro = 105
27 yen, GBP = 120 yen

FY2012 Seeking Maximization of Corporate Value

Ensuring both proactive investment for growth and return to shareholders

Top-class ROE
among peers
Equity Spread*6%+

Source ofValue Creation

EPS
r-g

Proactive resource allocation
for investment in R&D
to accelerate innovation(101% YOY; 20%+ of total sales)

Decline inoperating profit(91% YOY)

Strong Balance Sheet
Maintaining the level ofnet income throughcorporate efforts(101% YOY)

r: cost of capital (%)
g: perpetual growthrate of EPS• Net DER: 0.38
(Target for March 2013: 0.35)• Equity to Total Assets ratio: 42%• Current Assets to Liabilities ratio:
253%• Credit rating: AA- (R&I)(as of March 2012)

To meet expectations of shareholders/investors

Maintaining the dividend(annual dividend of 150 yen)

28

Proactive investment for
number of global productlaunches in FY2012*Equity Spread = ROE – Cost of Equity; assuming 8% of Cost of Equity

Supporting
the global standard of
DOE 10% level

Reference data

29

Performance of East Asia
Pharmaceuticals Business(Billion yen, %)April – March 2011
Results

April – March 2012%

Results

%

YOY

Sales

375.7

100.0

400.4

100.0

107 [107]

Aricept

110.8

29.5

113.8

28.4

103 [103]

Pariet

63.2

16.8

63.6

15.9

101 [101]

Methycobal

36.6

9.8

37.7

9.4

103 [103]

HUMIRA

16.6

4.4

24.0

6.0

145 [146]

Stronger Neo-Minophagen C/
Glycyron Tablets

7.6

2.0

8.0

2.0

105 [106]

149.1

39.7

167.7

41.9

112

Segment Profit[ ] based on local currency
30Performance of East Asia
Pharmaceuticals Business(Billion yen, %)＜Japan＞
April – March 2011

April – March 2012%

Results

Results

%

YOY

Sales
Prescription
Aricept
ParietMethycobal
HUMIRA
Actonel

350.4
311.1
105.5
60.2
30.4
13.3
11.5

100.0
88.8

372.6
331.2
108.3
60.9
30.0
20.5
11.0

100.0
88.9

106
106
103
101
99
154
96

OTC
Generics
Diagnostics

20.7
12.4
6.1

5.9
3.5
1.7

21.7
13.7
6.0

5.8
3.7
1.6

105
111
98

Segment Profit

145.0

41.4

162.6

43.6

112

＜China＞(MM RMB, %)April – March 2011
Results%

Sales
Methycobal

Results

April – March 2012
%

YOY

1,106
474

100.0
42.9

1,366
605

100.0
44.3

124
128

Stronger Neo-Minophagen C/
Glycyron Tablets

234

21.1

303

22.2

130

Aricept
Pariet

99
86

8.9
7.8

131
95

9.6
6.9

133
110

31

Performance of U.S.
Pharmaceuticals Business($ million, %)April – March 2011
Results%

April – March 2012
Results

%

Sales

3,535

100.0

1,990

100.0

56

Aricept

1,790

50.6

144*1

7.3

8

AcipHex

765

21.6

707

35.5

92

Halaven

25

137

545

Aloxi

403

436

108

Dacogen

189

219

116

Total MGI

628

686

109

Fragmin

191

176

92

Total oncology-related products
Segment Profit*2

908

25.7

1,050

52.7

116

1,101

31.2

429

21.6

39

*1 Including Aricept 23 mg sales of $51M and $36M revenue from AG (Authorized Generic).
*2 Segment profit from U.S. pharmaceuticals business in local currency was calculated based on average exchange rate.
32

YOYPerformance of Europe and New Markets &ASEAN Pharmaceutical Business＜Europe＞(Billion yen, %)April – March 2011
Results

April – March 2012%

Results

%

YOY

Sales

44.4

100.0

42.2

100.0

95 [99]

Aricept

24.4

55.0

20.1

47.7

83 [86]

Pariet

6.4

14.4

5.2

12.3

81 [84]

Zonegran

4.3

9.8

4.5

10.7

104 [108]

Segment Profit

4.7

10.6

7.1

17.0

152

[ ] based on local currency＜New Markets & ASEAN＞(Billion yen, %)April – March 2011
Results

33%

April – March 2012
Results

%

YOY

Sales

6.9

100.0

7.2

100.0

103 [109]

Aricept

1.8

25.3

1.7

23.5

95 [102]

Pariet

1.8

25.2

1.7

23.6

96 [103]

Segment Profit

1.0

14.4

1.0

13.9

100

[ ] based on local currency