Q3 FY2014(Fiscal Year Ending March 31, 2015)

Financial Results Presentation

Eisai Co., Ltd.

January 30, 2015

Safe Harbor Statement

1•

Materials and information provided during this presentation may contain so-called “forward-looking
statements.” These statements are based on current expectations, forecasts and assumptions that are
subject to risks and uncertainties which could cause actual outcomes and results to differ materially fromthese statements.

•

Risks and uncertainties include general industry and market conditions, and general domestic andinternational economic conditions such as interest rate and currency exchange fluctuations. Risks anduncertainties particularly apply with respect to product-related forward-looking statements. Product risks anduncertainties include, but are not limited to, technological advances and patents attained by competitors;
challenges inherent in new product development, 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; andgovernmental laws and regulations affecting domestic and foreign operations.

•

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

•

Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which
include, but are not limited to, inability to build production capacity to meet demand, 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 Japanese version shallprevail.

FY2014 Goals,
Achievements and Challenges through Q3
FY2014 Goals
Proactive investment for
return to growth trajectory

2

Achievements andChallenges through Q3

Expansion of global brands*1

Slower growth of
BELVIQ® and Fycompa

Acceleration of Product Creation*2

Generally achieved as planned

Expansion of business instrategic markets*3

Steadily achieved
submissions/approvals ofglobal brands*1*1: Halaven, Fycompa, BELVIQ®, and investigational lenvatinib*2: Halaven, Fycompa, BELVIQ® (investigational) lenvatinib, E2006, BAN2401, E2609, avatrombopag*3: Russia, Brazil, Mexico, Canada and Australia

Recap of Q3 YTD Performanceand Forecast for FY2014
Recap of forecast for FY2014 disclosed in May 2014
 94% YoY in revenue, 80% YoY in operating profit
and 91% YoY in profit for the period
 Proactive investment for return to growth trajectory from 2H
 Sustain dividend of 150 yen/share
Recap of Q3 YTD performance Pharmaceutical business in Japan• Lag behind the target by generic erosion• Positive trend from Q3
 BELVIQ® and Fycompa• Slower growth Increase in revenue and R&D expenses and decrease in operating profit byforex impact
 Decrease in tax expenses due to the repayment of paid-in capital of a U.S.
subsidiary

Recap of the revision over FY2014 forecast
 Maintain in-line level revenue forecast and revised operating profit target Dividend of 150 yen/share maintained by achieving the original target profit
for the period
3Q3 FY2014 YTDConsolidated Statement of Income (IFRS)(Billion yen, %)April-December 2013

Results

Revenue%

April-December 2014

Results

%

YoY

445.1

100.0

408.5

100.0

92

147.5

33.1

143.1

35.0

97

297.7

66.9

265.4

65.0

89

R&D expenses

103.4

23.2

97.9

24.0

95

SG&A expenses

151.8

34.1

143.4

35.1

94

2.7

0.6

(0.3)

(0.1)

Operating profit

45.1

10.1

23.8

5.8

53

Profit for the period

28.0

6.3

36.8

9.0

132

Pharma EBIT*

148.6

33.4

121.7

29.8

82

Cost of sales
Gross profit

Other income & expenses*Pharma EBIT: Operating profit + R&D expenses
Q3 FY2014 average exchange rates: USD: 106.87 yen (+7.5% YoY), EUR : 140.30 (+6.1% YoY), GBP: 175.57 (+12.6％ YoY)4

Breakdown of Revenue Migration

Impact of AcipHex LOE*1 in the U.S.
and business environmental changes in Japan（億円）(Billion
yen)

-23.9

+9.0
+8.3
450
4,500

-27.0
-3.1

400
4,000

-36.7B yen
YoY

445.1
408.5

350
3,500
Revenue
Growth ofExpansion of *2 Impact of
2013年
グローバル 成長セグメント
米国
April-December global brands business in China
AcipHex
4-12月
ブランドの育成 andの拡大
アシフェックス2013
Asia*2,*3
LOE*1 in U.S.

売上収益

 Halaven +4.5 China
 Fycompa +1.6 Asia*2
 BELVIQ® +2.3

+6.4
+2.5

LOE *1

Pharmaceutical
Others
国内
その他の増減business in *2
医薬品事業Japan*3
Drug price revisions
Generic erosion*Figures shown on breakdown of revenue migration are approximate.
5*1: Loss of exclusivity *2: Mainly South Korea, Taiwan, Hong Kong, India and ASEAN*3: Excluding revenue of global brands

Revenue
2014年
April-December
4-12月
2014
売上収益

Breakdown of Operating Profit Migration
Investments aiming at rapid growth beyond FY2015
1. Expansion of global brands
14.0B yen
2. Acceleration of product creation of 8 priority pipelines*1 11.0B yen
3. Expansion of business in strategic markets*2
1.6B yen(Billion yen)

60
600

+6.3

+3.4

-26.6
1
2

300
30

45.1

3

-25.7

+21.3

-21.3B yen
YoY

23.8
0
OperatingprofitGrowth ofExpansion of 将来に向けた
Upfront
Pharmaceutical
OthersOperating
2013年
グローバル
成長セグメント
国内
その他の増減2014年profit
April-December
global brands
business ininvestment forbusiness in *4
April-December
4-12月
ブランドの育成
の拡大
先行投資
医薬品事業
4-12月
*3
*4
2013
China and Asia
future growth
Japan
2014
営業利益
（純増分）
営業利益
(net
increase)
Drug
price
FY2013
Halaven
structuralrevisions
Fycompa
reform*5 costs®
GenericBELVIQ+12.7
erosion*Figures shown on breakdown of operating profit migration are approximate*1: Halaven, Fycompa, BELVIQ® (investigational) lenvatinib, E2006, BAN2401, E2609, avatrombopag

6*2: Russia, Brazil, Mexico, Canada and Australia*3: Mainly South Korea, Taiwan, Hong Kong, India, and ASEAN*4: Excluding operating profit of global brands*5: Structural reform of Product Creation Units in the U.S. and Europe, Misato Plant business operations transfer and voluntary retirement programRegional Revenue of Pharmaceutical Business
BP Nearly achieved in all regions except Japan
Americas*2

Japan*1
Impact of drug price revisions and generic erosion
Achieved 112% QoQ growth in revenue in Q3(Billion（億円）
yen)

213.3

April-December
2013年4-12月

April-December
2014年4-12月
2014

2013

China
Steady growth of
Aricept and Methycobal（億円）(Billionyen)(Billion（億円）yen)

89% YoY
前同比
89%

240.7

127% YoYImpact of AcipHex LOE
Steady growth of Halaven and Aloxi

82% YoY
前同比
82%

106.8

87.5

2013年4-12月
April-December

2014年4-12月
April-December

2013

2014

EMEA*4

Asia*3

Steady expansion in South Korea Halaven achieved 138% YoY growth
driving growth for Asia
前同比120%120% YoY(Billion
yen)
（億円）

前同比
115% 115%
YoY(Billion
yen)
（億円）

30.0
23.6

7

28.5
19.8

22.8

23.8

April-December
2013年4-12月

April-December
2014年4-12月

April-December
2013年4-12月

April-December
2014年4-12月

2013年4-12月
April-December

2014年4-12月
April-December

2013

2014

2013

2014

2013

2014

*1: Prescription medicines, generics, diagnostics *2: North, Central and South America*3: Mainly South Korea, Taiwan, Hong Kong, India and ASEAN *4: Europe, Middle East, Africa, Russia, and Oceania

Forecast for FY2014 (IFRS)Maintain stable dividends
through mid to long-term balance sheet management(Billion yen, %)FY2013

FY2014

Results%

Forecast

%

599.5

100.0

555.0

100.0

93

566.0

194.7

32.5

195.5

35.2

100

200.0

404.8

67.5

359.5

64.8

89

366.0

R&D expenses

136.3

22.7

131.5

23.7

96

121.5

SG&A expenses andothers*1

202.1

33.7

198.0

35.7

98

191.5

Operating profit

66.4

11.1

30.0

5.4

45

53.0

Profit for the period

38.5

6.4

35.0

6.3

91

35.0

202.7

33.8

161.5

29.1

80

174.5

91

122.4

Revenue
Cost of sales

Gross profit

Pharma EBIT*2

8FY2014YoY

May 2014 figures

EPS (yen)

134.1

ROE (%)

7.6

6.3

6.7

DOE (%)

8.5

7.7

8.2

Dividends (yen)

150

150

150

122.0

*1: SG&A expenses + other income and expenses *2: Pharma EBIT: Operating profit + R&D expenses
FY2013 average exchange rates: USD: 100.23 yen, EUR: 134.36 yen, GBP: 159.44yen Estimated exchange rates for Q4 FY2014 USD: 119 yen,
EUR: 147.5 yen, GBP: 187.85 yen. Forecast for FY2014 was revised in consolidated financial report for FY2014 Q3 (IFRS).

Positive Trend in Japan Pharmaceuticals Business from Q3
New indication approval contributes toward revival of Aricept

FY2014 Q3 YTD revenue 73.7B yen
112% growth QoQ (119% growth QoQ for Aricept)(Billion yen)

2Q
Q2

Q3
3Q

9

10.7

8.4

15.1

Aricept

ParietNextgeneration Generics
4 products*

12.8

9.7

17.0

* Halaven, HUMIRA, Lyrica (alliance revenue) and Lunesta

6.1

65.9B
yen

25.5

6.9

Other products

27.3

73.7B
yen

Toward Revival of Aricept in Japan

Dementia with Lewy bodies:disease awareness level

Increased awareness of dementia with Lewy bodies
through patient awareness activities
Nov. 2014–Jan. 2015
Disease awarenessTV commercial

Sep. 2014
Promotion for new
indication launched

Jul. 2014
survey result*

23.5%

Nov. 2014
survey result*

32.0%

Jan. 2015*
survey result

36.2%

Reached awareness levelsecond only to Alzheimer’s

Proactive disease awareness at seminars and medical conferences
Promote community-building under local government partnerships

Dementia with Lewy bodies (DLB) is difficult todiagnose due to its complicated symptoms suchas cognitive fluctuations, Parkinsonism andvisual hallucination along with progressive
cognitive impairment
10

Jan. 2015–Mar. 2015
Educational program
about dementia

Contribute to patients with DLB
by providing information on proper
diagnosis, treatment and careas a pioneer in dementia care field*Based on external online survey (Survey on: Jul. 24, 2014; Nov. 27, 2014; Jan. 5, 2015)
Survey participants: Male and female aged 40 and over (excluding medical and healthcare professionals and those working in surveys and/or advertising)Jul. 2014: 618 participants; Nov. 2014: 617 participants; Jan. 2015: 618 participantsDisease awareness level for each disease according to Jan. 2015 survey: Alzheimer’s disease 99.8%, DLB 36.2%, vascular dementia 35.6%, frontotemporal dementia 28.3%

Toward Revival of Aricept in Japan

Positive trend following
dementia with Lewy bodies (DLB) as additional indication(Billion yen)

18.3

Transition of revenue of Aricept
17.3

16.7
12.8

13.4

12.8
10.7

100
10.0

FY2014 Q3 results
Revenue: 12.8B yen
119% growth QoQ

Sep. 19, 201400
FY20132013年度Q1
1Q

FY20132013年度Q2
2Q

FY20132013年度Q3
3Q

FY20132013年度Q4
4Q

FY20142014年度Q1
1Q

FY20142014年度Q2
2Q

FY20142014年度
Q3
3Q

Obtained DLB indication
Registration validity
period: 4 years

Response from medical institutions following DLB as additional indication
Number of facilities purchased Aricept:
421 including 12 medical institutions for dementia
Institutions planning to prescribe Aricept for patients with DLB
125 university affiliated hospitals, 153 medical institutions for dementia
12,353 other medical institutions

Already prescribed to approx. 20,000 patients with DLB
11(Internal estimates)

Toward Revival of Pariet in Japan

Obtained new indication for the prevention of recurrence of ulcers during
treatment with low-dosage aspirin on December 26, 2014

Current situation of patients treated with low-dosage aspirin Approx. 4 million*1 patients in Japan are treated with low-dosage aspirin to suppress thrombosis andembolization associated with angina, myocardial infarction, ischemic cerebrovascular disease, etc.
 Approx. 1–2% experience gastrointestinal hemorrhages and approx. 10–20% experience peptic
ulcers*2, but tentative withdrawal from therapy is difficult as it is linked with recurrence of
cardiovascular events

New Pariet indication
 Administration (Suppression of recurring gastric and duodenal ulcers associated with administration of low-dosage aspirin)
Normally, adult patients are administered 5 mg of rabeprazole sodium orally once daily, but may be
administered 10 mg of rabeprazole sodium orally once daily if such treatment is deemed inadequate.

 Clinical Study Results
Total rate of recurrences ofgastric and/or duodenal ulcers
following 24 weeks of therapy

 Registration validity period:
4 years

Pariet 5 mg arm Pariet 10 mg arm
No. of patients
Total No. ofrecurrences
Total rate ofrecurrencesp-value

teprenone arm

150

151

151

4

2

32

2.8%

1.4%

21.7%

p < 0.001

p < 0.001

Seek to increase Pariet clinical value
through new indication and new 5 mg tablet formulation*3 (Feb. launch planned)
Seek further contribution to treatment of patients with acid-related diseases
12*1: Internal estimates *2: Source: BMJ 321: 1183-1187, 2000, Arch Intern Med 162: 2197-2202, 2002, Aliment Pharmacol Ther 22: 795-801, 2005
*3: Approved only for Pariet in all rabeprazole products

Toward further growth of BELVIQ®
Accelerate obesity market expansion
Performance of BELVIQ® prescriptions
12,000TRx

10,000

8,000

NRx
6,000

The weight
management market
4,000
has experienced
regular growth
in January to June
2,000
followed by stabilizationin July to December
0• Regular growthseason from Q4• Sales force
optimization by
resizing fromapprox. 600 to 450

Continuous effort toincrease awareness ofpharmacotherapy forobesity through DRTV*1
Stable
J
June
2013

S
D
July
to December
2013

Growing
M
January
to JuneJ2014

StableGrowingS
D
July
to December
2014

January 2015

Source: IMS NPA

Balancing 3 Key Drivers
Patients

Physicians*2

Improve access andaffordability for patients

Over 69,000 physicians
have prescribed BELVIQ®*3“Pay no more than $75
for cash patients”

Seeking to further expand the numberof unique prescribers*2

New support program launched in Q4
13

PayorsAchieved annual target of
70% commercial coverage*4
Expanded employer coverage
from 12.5 million at Q2
to approx. 17 million lives*1: Direct Response Television *2: All prescribers including Nurse practitioners and Physician assistants. *3: Source: IMS Xponent PD*4: Source: 1 Fingertip Formulary

Maximize the Value of Fycompa
Primary generalized tonic-clonic seizures (PGTC)*1
Achieved submission in the U.S. and EU in August 2014
PDUFA*2 Action Date (US): June 19, 2015

Placebo Fycompa
Primary endpoint for
US submission
Percentage change in seizure
frequency*3-38.4

Statisticallysignificant reduction-76.5(p<0.0001)

Partial-onset seizures

50% PGTC responder rate(%)%change in seizure frequency

Phase III study (Study 332) presented
at the 68th American Epilepsy Society (AES) Annual Meeting in December 2014
Primary endpoint for EU
submission

64.2
39.5

50% PGTC responder rate
Percentage of patients achieving > 50%
reduction in seizure frequency*3

Statisticallysignificant improvement
Placebo Fycompa(p<0.01)

Obtained approval in 43 countries (as of January 2015)

Met the primary endpoints in patients with refractory partial-onset seizuresin phase III study conducted in Asia including Japan and China

1H FY2015 Submission anticipated in Japan14*1: Investigational *2: Prescription Drug User Fee Act *3: Patients enrolled and randomized to placebo or Fycompa wereon an existing regimen of 1-3 antiepileptic drugs administered concomitantly.

Growth of Halaven
Q3 YTD revenue: 25.8B yen (121% YoY)
Obtained approval for MBC*1 indication in 58 countries (as of January 2015)
Obtained earlier-line treatment indication in Europe (EMA*2) and 8 other countries/territories: Russia, Switzerland,
Morocco, Israel, Thailand, Philippines, Hong Kong, South Korea
Transition of global revenue
for Halaven

EMEA*3（Billion yen)
10.0
100

Rapid growth driven
by additional indication
8.2

80
8.0

7.5

9.3

8.3

7.5

6.0
60

Q3 YTD revenue: 8.4B yen (138% YoY)
Rapid growth driven by additional indication in Europe

 Promote usefulness of Halaven as earlier-line treatment, based on
ASCO*4 and ESMO*5 guidelines released in September 2014
 Leverage successful cases observed in Europe to Japan andAsia, where same indications have approved
Aim to establish Halaven as the first choice for earlier-line
treatment.

Americas*6
Q3 YTD revenue: 11.9B yen (121% YoY)

4.0
40

Achieved double-digit growth through activities
focused on HER2 negative patients
2.0
20Soft-tissue
sarcoma*7
0FY2013 2013年度
FY2013 2014年度
FY2014 2014年度
FY2014 2014年度
FY20142013年度
3Q
4Q
1Q
2Q
3Q
3Q
4Q

15

Phase III study ongoing
Topline results anticipated in FY2014

Plan to submit in FY2015 depending
upon clinical study outcome*1: Metastatic breast cancer *2: European Medicines Agency *3 Europe, Middle East, Africa, Russia and Oceania*4: American Society of Clinical Oncology *5: European Society of Medical Oncology *6: North, Central and South America *7: Investigational

Investigational Lenvatinib

New combined tri-specific (VEGFR+FGFR+RET) targeted therapy

Favorable results in Phase III trial (SELECT Study)
Lenvatinib arm tumor regression ratio distribution*1

Primary end point: PFS (progression-free survival)*1

65% of patients achieved partial response or higher(median value of tumor regression in cases of partial
response or higher: 52%）

Improvement in PFS refractory
differentiated thyroid cancer
Lenvatinib arm
Median PFS: 18.3 months

Best Overall Response

Hazard ratio (99% CI): 0.21 (0.14–0.31)
Log-rank test: p < 0.0001

Complete Response (n = 4)
Partial Response (n = 165)
Stable (n = 60)
Progressed (n = 16)

Placebo arm
Median PFS: 3.6 months

Therapeutic effect*1
Median duration until partial
response or higher achieved(lenvatinib arm):

2 months*3(95% CI: 1.9–3.5 months)

Percent Change in Tumor
Size from Baseline

Tumor regression in 99% of patients

Tumor regression effect*2

0
-10
-20
-30
-40
-50
-60
-70

0

8

16

24

32

40

48

56

64

72

80

Grade 3 or higher adverse events: Hypertension (41.8%), proteinuria (10.0%), weight loss (9.6%), diarrhea (8.0%), decreased appetite (5.4%)

16 *1: As presented at 2014 ASCO (American Society of Clinical Oncology) Annual Meeting *2: As presented at ESMO (European Society for Medical Oncology)
Congress 2014 *3: Point where condition is first observed to have exacerbated

88 wksInvestigational Lenvatinib

Development aimed at value maximization
Thyroid cancer

Achieved submission in Japan in June 2014,
Europe and U.S. in August 2014

Global approval anticipatedin FY2014–2015

Obtained Orphan designation and granted priority review in all three regions(PDUFA* action date [U.S.]: April 14, 2015)

Achieved submissions in Switzerland in October, South Korea in November,and Canada, Singapore, Russia in December 2014
Subsequent submission planned for Brazil, Australia, etc.

Plan to submit
in FY2016

Hepatocellular
carcinoma

lenvatinib vs. sorafenib

Phase III trial (Study 304) steadily ongoing
Metastatic renal
cell carcinoma

Primary endpoint: Overall survival (OS)Secondary endpoint: Progression-free survival (PFS）

Obtained favorable results in phase II trial

Adjunctive therapy withimmune checkpoint inhibitors

Non–small cell lungcancer2 phase II trials ongoing

Results as adjunctive therapy with anti-PD-1 antibody
and anti-PD-L1 confirmed in pre-clinical trials

Endometrial cancer

Phase II trial ongoing17* Prescription Drug User Fee Act

Pipeline to Support Sustained Growth

Developing next-generation Alzheimer’s disease treatments
Investigational
E2609

In-house developed
Beta-secretase (BACE) inhibitor

Investigational
BAN2401

An antibody targeting
amyloid-beta protofibrils

Initiated phase II study in November 2014

Phase II study is ongoing

Topline results on safety anticipated in FY2015

Topline results anticipated in FY2015
E2609 and BAN2401
in co-developmentwith Biogen Idec, Inc.
under Eisai leadership

Multiple pipeline plans
for suppression of
disease progression

Retain option rights to jointly
develop and commercialize
BIIB037, anti-amyloid beta antibody
and anti tau antibody
currently under development byBiogen Idec, Inc.
18

Establishment of China Region

Acceleration of further business expansion
Transition of revenue in China

Aim to maximize contribution to patients in
Chinese pharmaceutical market, which is(Billion yen)*1
expected to see 11.5% average annual
40
400
growth over next five years

FY2014 forecast

41.0
31.8

30
300

Establishment of China region

21.8
16.9

20
200

FY2014Q3 total
30.0

14.1

Establishment of China autonomy model• Speedy decision-making by local management• Direct reporting to CEO’s office

10
100

0
2010年度FY2010 2011年度
FY2011 2012年度
FY2012 2013年度
FY2013 2014年度
FY2014
実績
実績
実績
実績
見通し
results
results
results
results
forecast

Establishment of Eisai China Holdings Ltd. in November 2014•

Integration of two domestic subsidiaries*2 in China to execute strategicplanning• Strengthen various functions, including finance, accounting, legal andcompliance• Pursue flexible capital management system to optimize strategic
investment
19

Opening of Suzhou parenteral formulation facility
in November 2014•

Establish system forstable supply of
Methycobal injection
Suzhou parenteral facility, China*1: Source: Internal estimate based on © 2015 IMS Health, Global Outlook for Medicines Through 2018. Report by the IMS Institute for Healthcare Informatics. November
2014. Reproduction prohibited *2: Eisai China Inc. and Eisai (Suzhou) Trading Co., Ltd.

Steady Growth of New Asia Region*1

Revenue, operating profit both sustain double-digit growth
Transition of revenue in Asia

Fycompa

HalavenFirst launch in Asia achieved Contributed to over 1,400 patients
その他
OthersTaiwan台湾

タイ
ThailandSouth Korea
韓国

115% YoY
22.8(Billion yen)

19.8

Launched Hong Kong inNovemberApproved Taiwan, Malaysia,

Singapore,
Thailand

200
20

13.8

Under
review

100
10

9.4
5.3

Obtained
Further promotion approval for*2 nd
to support patients MBC 2 line
treatment in:in:
Thailand,India, Thailand,
Philippines,
Philippines,
Malaysia, Hong
Hong Kong,
Kong, Singapore
South Korea
Tiered Pricing

Toward maximization ofcontribution to patients

Sharp rise in revenue (131% YoY)*3
through expansion of business020

Indication
Expansion

Vietnam, Myanmar as new markets

7.7

2012年度FY2012Q3 YTD
3Q累計

Philippines, India,
Indonesia,
South Korea

Pricing Policy

2013年度FY2013Q3 YTD
3Q累計

2014年度FY2014Q3 YTD
3Q累計

Expand contribution to patients through proactive
co-operation toward improving local medical technology*1: Mainly South Korea, Taiwan, Hong Kong, India and ASEAN*2: Metastatic Breast Cancer *3: Total sales of Vietnam and Myanmar

Business Expansion in Strategic Markets*1

Successful progress of submissions/launches of global brands

RussiaHalaven

Fycompa

Investigational
lenvatinib

Launched in September 2013
Approved for 2nd line treatment
for metastatic breast cancer in
November 2014

Launched in June 2014
Submitted
in November 2014 (PGTC*2)

Submitted in December
2014

Launched in November 2014

Submitted in September 2013

Submission planned

Approved in August 2014

Approved in November 2014

Submission planned

Launched in March 2012

Launched in May 2013

Submitted in December
2014

Launched in November 2014

Orphan drug designation
granted in
November 2014
Submission planned

BrazilMexicoCanadaAustralia
Launched in October 2014
*1: Russia, Brazil, Mexico, Canada and Australia*2: Primary generalized tonic-clonic seizures. Investigational.
21

Aiming for Growth in FY2015 and Beyond
Sustainable
rapid
growthSteady growth of global brands
Valuemaximization

Acceleration ofLenvatinib*1
market expansion Global launch

Toward revival of pharmaceutical business in Japan(Aricept)(Pariet)Dementiawith Lewy bodies

Prevention of recurrence of gastric and duodenal
ulcers during treatment with low-dosage aspirin

Lenvatinib*1(Halaven)

Thyroid cancer

Recurrence
breast cancer

Steady progress in Product Creation
HalavenHalaven
RussiaFycompa

BELVIQ®

Lenvatinib*1

BAN2401*1

E2609*1

Expansion of business in strategic market

Fycompa

BELVIQ
BrazilLenvatinib
Mexico

BAN2401
Canada

E2609

E2006*1,*2

E2006
Australia*1: Investigational *2: Target indication: Insomnia treatment

Aim to return to growth trajectory in revenue and profit
in FY2015 and beyond through cost-effective investments
22

Reference Data

23

Revenue by Reporting Segment(billion yen, %)April–December 2013
Results

Japan*1

240.7

April–December 2014%

Results

%

54.1

213.3

52.2

YoY

89

Japan
日本

54%
Americas*2

106.8

24.0

87.5

21.4

52%

82

Americas
アメリカス

中国
China

China

23.6

5.3

30.0

7.4

127

Asia*3

19.8

4.4

22.8

5.6

115

EMEA
EMEA
薬粧事業（日本）＋
Consumer
Healthcare
その他事業
Business (Japan)
and others

23.8

5.4

28.5

7.0

120

Consumer
Healthcare Business(Japan)*5

14.5

3.3

13.2

3.2

91

Reporting segment
total

429.1

96.4

395.4

96.8

92

Others

16.0

3.6

13.1

3.2

82

445.1 100.0

408.5

100.0

92

EMEA*4

Consolidated
revenue

アジア
Asia

24%

21%
7%

5%
4%
5%
7%

6%
7%
6%

Apr.–Dec.
2013年4-12月

Apr.–Dec.
2014年4-12月

2013

2014

Pharmaceutical Businesses of Japan, Americas, China, Asia and EMEA
*1: Prescription medicines, generics and diagnostics *2: North, Central and South America *3: Mainly South Korea, Taiwan, Hong Kong, India and ASEAN
24 *4: Europe, Middle East, Africa, Russia and Oceania *5: Mainly OTC products

Operating Profit by Reporting Segment
April-December 2013
% ofrevenue(Billion yen, %)April-December 2014%

% ofrevenue

95.9

73.7

45.0

78

16.2

11.0

8.5

12.6

64

3.7

25.2

8.3

6.4

27.6

139

4.4

2.7

22.2

5.5

4.2

24.0

125

EMEA*4

3.5

2.1

14.5

4.8

3.7

16.9

139

Consumer
Healthcare Business(Japan)*5

2.8

1.8

19.7

1.2

0.9

9.1

42

156.1

96.1

36.4

126.6

97.3

32.0

81

6.4

3.9

40.0

3.5

2.7

26.7

55

5.8

53

Results%

Japan*1

122.2

75.2

50.8

Americas*2

17.3

10.7

China

5.9

Asia*3

Reportingsegment total

OthersR&D expenses andgroup headquarters’
management costs, etc.

Consolidated
Operating Profit(117.4)

Results

YoY(106.3)

45.1

10.1

23.8

Pharmaceutical Businesses of Japan, Americas, Asia, and EMEA

25

*1: Prescription medicines, generics and diagnostics*4: Europe, Middle East, Africa, Russia, and Oceania*2: North, Central, and South America *3: Mainly South Korea, Taiwan, India, and ASEAN*5: Mainly OTC productsPerformance of Japan Pharmaceutical Business(Billion yen, %)April-December 2013
Results

Results%

YoY

Revenue

240.7

100.0

213.3

100.0

89

Prescription medicines

219.1

91.0

189.5

88.8

86

Aricept

52.3

21.7

37.0

17.3

71

Pariet*1

36.9

15.3

28.8

13.5

78

HUMIRA

22.3

9.3

22.8

10.7

102

Methycobal

19.6

8.2

17.2

8.1

88

Lyrica*2

13.8

5.7

16.0

7.5

116

Warfarin

7.5

3.1

6.7

3.1

89

Actonel

6.0

2.5

5.2

2.4

86

Halaven

5.0

2.1

4.5

2.1

91

Selbex

5.3

2.2

3.7

1.7

70

Lunesta

2.0

0.8

3.4

1.6

167

Generics

17.1

7.1

19.4

9.1

113

Diagnostics

4.4

1.8

4.4

2.1

100

122.2

50.8

95.9

45.0

78

Segment profit
26%

April–December 2014

*1: The revenue from Pariet includes the sale of triple formulation packs for H. pylori eradication, Rabecure Pack 400/800 and Rabefine Pack.
*2: Alliance revenue

Performance of Americas* Pharmaceutical Business(Billion yen, %)April-December 2014

April-December 2013
Results

Results%

YoY

Revenue

106.8

100.0

87.5

100.0

82

[76]

Aloxi

32.2

30.1

36.2

41.4

113

[105]

Halaven

9.9

9.3

11.9

13.6

121

[112]

AcipHex

33.4

31.3

9.4

10.8

28

[26]

Banzel

5.6

5.3

7.3

8.4

131

[122]

BELVIQ

®

1.7

1.6

3.9

4.5

236

[219]

Fycompa

0

0.0

0.9

1.0

3709 [3472]

17.3

16.2

11.0

12.6

Segment profit*North, Central and South America

27

%

64

[60]

[ ] based on local currencyPerformance of China and Asia* Pharmaceutical Business(Billion yen, %)<China>April-December 2013
Results%

April–December 2014
Results%
YoY

Revenue

23.6

100.0

30.0

100.0

127 [120]

Methycobal

10.5

44.4

13.0

43.2

124 [116]

3.8
2.8
1.6
5.9

16.1
11.7
6.8
25.2

4.9
3.4
2.1
8.3

16.3
11.4
7.0
27.6

129 [121]
124 [116]
131 [123]
139 [125]

Stronger Neo-Minophagen C/ Glycyron Tablets

Aricept
ParietSegment profit[ ] based on local currency<Asia*>(Billion yen, %)April-December 2014

April–December 2013

Results
Revenue
Aricept
HUMIRA

ParietMethycobal
HalavenSegment profit
28*Mainly South Korea, Taiwan, India and ASEAN

19.8
6.1
5.3
2.6
1.7
0.3
4.4

%

100.0
31.0
26.6
13.0
8.9
1.6
22.2

Results

22.8
6.8
6.0
2.7
2.0
0.8
5.5

%

YoY

100.0
29.9
26.4
11.9
8.6
3.6
24.0

115 [108]111 [102]
114 [105]106 [100]
112 [108]269 [251]
125 [114][ ] based on local currencyPerformance of EMEA* Pharmaceutical Business andConsumer Healthcare Business (mainly OTC products)<EMEA*>(Billion yen, %)April–December 2013
Results%

April–December 2014
Results%

YoY

Revenue

23.8

100.0

28.5

100.0

120 [112]

Halaven

6.1

25.7

8.4

29.6

138 [129]

Zonegran

4.9

20.6

6.1

21.5

126 [117]

Zebinix

1.8

7.4

2.4

8.4

136 [127]

Fycompa

1.0

4.1

1.7

6.1

177 [164]

Inovelon

1.4

5.9

1.6

5.6

114 [107]

Segment profit

3.5

14.5

4.8

16.9

139 [131][ ] based on local currency*Europe, Middle East, Africa, Russia and Oceania<Consumer Healthcare Business (Japan)>April–December 2013
Results

29%(Billion yen, %)April–December 2014
Results%

YoY

Revenue

14.5

100.0

13.2

100.0

91

Chocola BB Group

9.2

63.7

8.3

62.7

90

Segment profit

2.8

19.7

1.2

9.1

42

FY2013 Q3 Consolidated Financial Results
Impact of IFRS Introduction(Billion yen)

Revenue

Cost ofsales

R&D
expenses

SG&A
expenses

Other
income/expenses

OperatingprofitNon-operating
income/expenses,Specialgain/loss

Japan GAAP

448.0

141.6

106.2

157.5

-

42.8

1.8

Adjustment of sales incentives from
SG&A to deduction of revenue

(1.5)

(1.5)

Amortization of intangibles (inlicensing products) capitalized
under IFRS

0.8

Reclassification of restructuring
costs

5.1

Capitalization upfront / Milestone
payments for in-licensing products

Incometaxes

Profit fortheperiod

-

14.9

29.5

-

-

(0.8)

2.7

4.9

(12.7)

(5.3)

(1.1)

5.3
(7.0)

Non-amortization of goodwill

30

Financialincome/
costs

(0.3)

(0.5)

(4.4)

(7.2)

2.0

3.3

7.0

7.0

Reclassification of foreignexchange losses

(0.7)

(0.7)

0.7

-

Reclassification of gain on sales of
non-current assets

3.1

3.1

(3.1)

-

Interest and dividend income /Interest expenses

-

3.0

(3.0)

Reclassification of gain on
investment securities (special gain)

-

(3.4)

0.2

(1.3)

(1.9)

-

Other

(1.4)

(0)

(0.2)

(2.0)

0.4

1.2

2.0

(0.2)

3.2

(2.4)

Total adjustments

(2.9)

5.9

(2.8)

(5.6)

2.7

2.3

(1.8)

(3.0)

(0.8)

(1.7)

IFRS

445.1

147.5

103.4

151.8

2.7

45.1

-

(3.0)

14.2

28.0