Mitsubishi Tanabe Pharma Corporation
Medium-Term Management Plan 11-15

New Value
Creation
President & Representative Director

Michihiro Tsuchiya

New Value Creation

AgendaKey Concept
Review of Medium-Term Management Plan 08-10
Medium-Term Management Plan 11-15
Becoming a Company that Can Continue to Create New Value
Strategic Challenges
			 1 Bolstering Our Ability to Discover New Drugs
			 2 Advancing Domestic Operations, Centered on New Products			 3 Building a Foundation for the Expansion of Overseas Operations
			 4 Accelerating Operational and Structural Reforms
Numerical Targets
Together with Society1

New Value Creation

Key Concept

New Value Creation
Mitsubishi Tanabe Pharma will move on to a new growth stage under
the Medium-Term Management Plan 11-15.
The key concept of that new stage is 					New Value Creation .
Guided by that concept, we will become a company that can continue tocreate new value.
We will build a management foundation for the discovery and global provision of
new drugs that respond to unmet medical needs, and we will strive to contributeto improving the quality of life for large numbers of patients around the world.
This is our mission: providing a wide-range of value to society.

* Unmet medical needs: Medical needs for which there are no effective treatments or drugs

2

New Value Creation

Working to Realize Our Vision

Our Vision

We strive to be a global researchdriven pharmaceutical company
that is trusted by communities.

Our Plan for 2015

2015

We have a product pipeline that responds
to unmet medical needs around the world.
We have the capacity to implement
stable investment in R&D.

		 Medium-Term
Management Plan 11-15

We are moving ahead withthe establishment ofa foundation for global
development.

New Value Creation
2011
3



New Value Creation

Review of Medium-Term Management Plan 08-10

4



Review of Medium-Term Management Plan 08-10

New Value Creation

Results of Medium-Term Management Plan 08-10 and Ongoing Challenges: 1
Results

Enhancing the company’s
domestic sales presence

Enhanced the value of Remicade○	Enhanced specialized fields(Remicade, cerebral)	In-licensed Kremezin and Lexapro

Steady progress in key
development projects◎

Progress in developing
overseas pharmaceuticaloperations

	Remicade:Acquired approval for psoriasis,ankylosing spondylitis, and ulcerative
colitis and for increased dosage for RA
	Filed NDAs for Simponi, Telavic, Imusera

Challenges
	Steady penetration and nurturing of
new products	Establishing an efficient and effective
information provision system
	Obtaining approval as rapidly as
possible for drugs in late-stage
development in Japan and overseas	Enhancing pipeline that will support
sustained growth	Moved MP-513 and TA-7284 tosubsequent development stages

	Ongoing LCM*2 for priority products	Launched FTY720 in Europe and U.S.
(Novartis)	Strengthening discovery capabilities forresponding to unmet medical needs	Established sales companies in the U.S.
and China

	Establishing operational foundationin the U.S.

	Expanded countries where argatroban issold in Europe	Accelerating operational expansion
in China

Rapid establishment of POC*1*1. Proof of concept: Establishment of efficacy and safety in humans*2. Life cycle management: Contributing to more patients through additional indications, etc.

5

Review of Medium-Term Management Plan 08-10

New Value Creation

Results of Medium-Term Management Plan 08-10 and Ongoing Challenges: 2
Results

Progress in genericoperations

Creating an efficientorganization andcost structure

Established operational foundation○○

Established Tanabe Seiyaku Hanbai	Bolstering lineup with launch oflarge-scale products	Took an equity position in Choseido
Pharmaceutical	Nurturing products throughcooperation within the Group

Expanded the number of products handled	Expanding operations with consideration for strategic cooperation

	Generated cost synergies(cumulative total of ¥23.5 billion)	Further functional and worksite
reorganization (production, research,head office, branches, etc.)

	Consolidated functional subsidiaries(production services)	Consolidated research bases, Osaka head
office, training centers

Numerical targets

Challenges

	Net sales
Plan: ¥460.0 billion → Results: ¥409.5 billion
	Operating income
Plan: ¥95.0 billion → Results: ¥76.5 billion

	Strategic nurturing of organizational
systems and human resources	Implementing additional measuresto achieve numerical targets,
preparing for alternate scenarios	Did not achieve numerical targets for net
sales or operating income

Dynamic Synergy, the key concept of the Medium-term Management Plan 08-10,
generated steady results linked to future growth.
6

New Value Creation

Medium-Term Management Plan 11-15

Becoming a “Company that Can Continue to Create New Value”
Strategic Challenges
			1 Bolstering Our Ability to Discover New Drugs
			2 Advancing Domestic Operations, Centered on New Products			3 Building a Foundation for the Expansion of Overseas Operations
			4 Accelerating Operational and Structural Reforms
Numerical Targets

7

New Value Creation

Becoming a “Company that Can Continue
to Create New Value”

8Becoming a “Company That Can Continue to Create New Value”

New Value Creation

View of External Management Environment
Industrially developed markets(Japan / U.S. / Europe)

Emerging markets(China, etc.)

Increasing difficulty indrug discovery

	Markets receptive to innovative
medicine	Markets in which the level of medical
treatment is rising rapidly in conjunction with economic growth	Progress in science andtechnology; more-complicated,
more-advanced diseasemechanisms

Market scale: large
Growth rate: low	Measures to control health care tolimit social insurance expenditures(focus on medical cost performance)

Market scale: rapidly expanding
Growth rate: high	Rising development costs,
rising approval hurdles

	Possible to implement development ina short period of time for products thathave been approved in Europe / U.S.

Ongoing polarization in pharmaceuticals“Innovative, high-priced drugs” and “commodity, low-priced drugs.”

Convergence toward global mega pharmaceutical companies, specialty pharmaceuticalcompanies, and mega generic pharmaceutical companies.
New global drugs: Key points are the ability to discover new drugs and massive upfront investment
Specialty drugs: Key point is bolstering competitiveness through area specialization
Generic drugs: Key points are reliability and cost competitiveness9

Becoming a “Company that Can Continue to Create New Value”

New Value Creation

Overview of Medium-Term Management Plan 11-15

Key Concept

New Value Creation

PeriodApril 2011 to March 2016 (five years)

Objectives that Will
be Realized under
the Medium-Term
Management Plan 11-15

Becoming a company that can continue to create new value
Building a foundation for future growth	Taking on the challenge of unmet medical needs	Discovering drugs and building a foundation to provide them around the world
Investing aggressively in future growth
Steadily nurturing and providing new products and priority products, centered on Remicade

Fiscal 2015 NumericalManagement Objectives

Net sales: ¥500.0 billion
Operating income: ¥100.0 billion

10Becoming a “Company that Can Continue to Create New Value”

New Value Creation

Creating a Sustained Growth Spiral
Creating a sustained growth spiralby continually reinvesting profits
Continual reinvestment

Increasing our revenue /profit generating capacity

	Investment to enhance pipeline	Investment to rapidly nurture
new products

	Revenues / profits from existing
businesses

	Investment to strengthenfoundation for overseas
operations

	Maximizing revenues / profits
from new products
	Expanding scale of and revenues/ profits from overseas businesses	Large-scale product royalty
revenues	Low cost operations11

Becoming a “Company that Can Continue to Create New Value”

New Value Creation

Sustained Growth and Organizational Restructuring
By continually launching new drugs, we will reform
our revenue / profit structure so that overall profits are
centered on priority products and new products.
Net sales
Other existing
drugsRoyaltyrevenues

2010

Overseasrevenues

2015

Priority
products

Newlylaunchedproducts/: Priority
new products

65 : 35
40 : 60

Future12

New Value Creation

Medium-Term Management Plan 11-15: Strategic Challenges
1

Bolstering Our Ability to Discover New Drugs

2

Advancing Domestic Operations,Centered on New Products

3

Building a Foundation for the
Expansion of Overseas Operations

4

Accelerating Operationaland Structural Reforms

Our Plan for 2015

Aggressive investment
in growth13

New Value Creation

1 Bolstering Our Ability to Discover New Drugs

 Value Creation


Discovering new drugs that respond to unmet medical needs

14New Value Creation



1 Bolstering Our Ability to Discover New Drugs

Overview of New Drug Launches
Principal target diseases in research
stage to early development stage

Areas

Products expected to be launched underMedium-Term Management Plan 11-15*
Acquisitionof POCMarketing franchise areas
Autoimmune diseases

RA, Crohn’s disease, psoriasis, etc.

Kidney diseases

Complications of dialysis

Late-stage
development

MP-146

MCI-196

TA-7284

MP-513

LaunchLCM

Simponi

Remicade

ACREF

Radicut

Chronic kidney disease
Diabetes(including complications)

Complications of diabetes

New disease areas

MP-214Multiple Sclerosis

Neurological disorders, etc.

ImuseraSchizophrenia, dementia, pain, etc.
BK-4SP(vaccine)

Other areas

Telavic

TalionMaintate* Including additional indications
In-licensed products

Launch in fiscal 2016 or thereafter
TRK-820(kidney diseases:
refractory pruritus)

New biologics

New vaccines

Development region
Europe / U.S.

Japan

15



1 Bolstering Our Ability to Discover New Drugs

New Value Creation

Enhancing Pipeline for Sustained Growth
Objectives
Launched products:
	Products advancing tolate-stage development:

10 products*(fiscal 2011-2015)

8 products 	(fiscal 2011-2015)

Products starting clinical trials: 3 products / year (fiscal 2015 objective)

Accelerate acquisition of POC by consolidating discovery andearly stage clinical trials
Advancing in-licensing and alliances
Bolstering global development function(strengthen four part system: U.S., Europe, China, Japan)
Strengthen producing function for clinical trial drugs to respond
appropriately to increase in number of drugs in development* Japan: Simponi, Telavic, Imusera, ACREF, MP-513, TA-7284, MP-214, BK-4SP
Overseas: MCI-196, MP-146
16



1 Bolstering Our Ability to Discover New Drugs

New Value Creation

Bolstering the Drug Discovery Function
Target discovery

Compound optimization One of our strengths

3 products / year

Medicinal chemistry

Target compounds
linked to unmet
medical needs

Needs / targets fromclinical practiceIncreasing
the speed of
the optimization process

Organicsynthesis

Evaluation
EffectivenessPharmacokinetics
SafetyHighly original compounds
Differentiated biologics

Search for candidates for CKD, autoimmune diseases,
neurological conditions, pain, etc; search for markers;
investigate concepts

Advancing to clinical trials:

Development
compounds

Compounds that respondto unmet medical needs

Taking on the challenge of new chemical areas*	Low-molecular versions of macromolecular pharmaceuticals, etc.
Securing new biologics technologies
Development in the fields of vaccines and orphan drugs* Discovery technologies for target molecules to which there is not a sufficient
response with existing low-molecule compounds or antibodies.
17

1 Bolstering Our Ability to Discover New Drugs

New Value Creation

Marketing Franchise Areas

Continued pipeline strengthening in marketing franchise areas*	Remicade, Simponi

	MP-513, TA-7284

Continued implementation of LCM
	MT-1303 (successor to Imusera) evelopment for autoimmune
Ddiseases apid launch
R
Advancing measures to promote rapid market
penetration to maximize value
	MCI-196, MP-146
Development in Europe / U.S. markets

	Early development stage products,
research stage products
RA, psoriasis, orphan diseases, etc.

	Early development stage products,
research stage products
 trengthening initiatives in chronic kidneyS
disease, diabetes complications, etc.
* Product areas that strengthen our marketing foundation18



New Value Creation

2 Advancing Domestic Operations,Centered on New Products

 Value Creation
Continuing to provide products that have value with reliable information19

2 Advancing Domestic Operations, Centered on New Products

New Value Creation

Growth Drivers in Domestic Operations
Approval

Simponi
ImuseraTelavic
LexaproMedium-Term Management Plan 11-15
RA

Ulcerative colitis*

Multiple Sclerosis
Genotype 2, Expansion of combination therapy

Chronic hepatitis C
Depression

MP-513

Type 2 diabetes mellitus

TA-7284

Consideration of combination drug

Type 2 diabetes mellitus

MP-214
Remicade

Schizophrenia
Increased dosage for Crohn’s disease

Talion

Pediatric inflammatory bowel disease, Special types of Behcet’s disease,
Severe Kawasaki disease
Pediatric

Radicut
Maintate

2020



ALS
Heart failure

Atrial fibrillation* Under development by Jannsen Pharmaceutical20

2 Advancing Domestic Operations, Centered on New Products



New Value Creation

Sales Policies
Provide lineup of drugs that respond to unmet medical needs,
together with reliable information based on global evidence,
to as many patients as possible.

	Further enhance product presence	High-quality information provision
activities as a leading company

	New products: focus on promoting
appropriate usage
	Priority products: Steady promotion	Post-marketing development of
products: Nurturing together withpatients, medical professionals

21

2 Advancing Domestic Operations, Centered on New Products



New Value Creation

Autoimmune Diseases Remicade

Value for patients

Indications:
Various inflammatory diseases

Indications

No. of patients

Crohn’s disease  30,000RA

250,000 (patients taking MTX)

Reduces chronic pain and distress sufferedby patients and makes it possible forthem to enjoy the same lifestyles as
healthy people.

Behcet’s disease(ocular)10,000 (uveitis)

Psoriasis

100,000

Ankylosing spondylitis
Ulcerative colitis

2,000
110,000

As first-in-class, best-in-class biologics, the first choice for various inflammatory
diseases, including orphan diseases
Pediatric ulcerative colitis, special types of Behcet’s disease, severe
Kawasaki disease
Strive to enhance quality and quantity of appropriate usage in formation
provision through cooperation between MRs specializing in Remicade andgeneral MRs.
22

2 Advancing Domestic Operations, Centered on New Products



New Value Creation

Autoimmune Diseases Simponi

Value for patients

Indications: RA
No. of patients: 500,000
Treatment can be undertaken with peace ofmind, with administration once every fourweeks, under the doctor’s supervision,in conjunction with patient hospital visits.

Subcutaneous
injection under
doctor’s care

Subcutaneous injection that is the first choice in RA treatment
High effectiveness and treatment continuity
Drawing on the marketing base and reputation for reliability established with
Remicade, we will work to promote its use on a foundation of appropriate
usage and effectiveness (co-marketing with Jannsen Pharmaceutical)

23

2 Advancing Domestic Operations, Centered on New Products

New Value Creation

Autoimmune Diseases Imusera

Value for patients

Indications: MS
No. of patients: 14,000

Acquisition of approval in more than 50 countries

Offers superior treatment effectiveness due to newmechanism of action discovered by the Company.
It is the world’s only oral formulation for MS.
It lowers the psychological and physicalburden faced by patients being treated withexisting self injection methods.

Administered
to more than
10,000 patientsin the U.S.

No. of patients worldwide: 2.5 million

Provides a new choice in drug treatment of MS,
where unmet medical needs remain.
Through the use of global prescription data and the implementationof domestic all-patient survey, we will accumulate evidence andearn the trust of prescribing doctors.

24

2 Advancing Domestic Operations, Centered on New Products

New Value Creation

Hepatic Diseases Telavic

Value for patients

Indications: Chronic hepatitis C
No. of patients: 400,000 to 500,000 / year

Status of overseas approvals

No. of 2-drug combination therapy patients: 20,000 to 25,000 / year

U.S. (May 2011)
Canada (August 2011)

Expected to be highly effective, even for patients for whom
existing treatments have not been effective.



VertexEurope (September 2011)
Johnson & Johnson

Treatment period reduced by half, lessening the treatment
burden borne by patients.

Basic treatment agent of chronic hepatitis C.
Working to expand indications to genotype 2 and to increase combination therapy.
In safey management operations, we will work in cooperation with
hepatologists and dermatologists at medical institutions implementing an
all-patient survey, and we will promote 3-drug combination therapy.

25



2 Advancing Domestic Operations, Centered on New Products

New Value Creation

Psychiatric and Neurological Conditions: Lexapro

Value for patients

Indications: Depression / depressive symptoms
No. of patients: 1 million
Supports the return to society, the mostimportant factor for patient QOL, with hightreatment continuity

Has been
administered tomore than 230 million
people worldwide,
top share among
SSRIs

Good balance between effectiveness and tolerability. Simple administration.
Therefore, first line drug for depression, with high treatment continuity.
Comarketing with Mochida Pharmaceutical, which is the license holder inJapan. Will aim to achieve top share among SSRIs* through co-promotion
with Yoshitomiyakuhin, which has a top class presence in the psychiatricarea in Japan.
* SSRI: selective serotonin reuptake inhibitor

26

2 Advancing Domestic Operations, Centered on New Products



New Value Creation

Diabetes Mellitus: MP-513, TA-7284

Value for patients

Indications: Type 2 diabetes mellitus
No. of patients with diabetes: 8.9 million
MP-513 and TA-7284 are oral drugs with new mechanism thatcan be administered in combination and are available for a wide
range of patients. They can control blood sugar with a highdegree of safety.

Status of overseas development

TA-7284
Planning to file NDA in 2012
Johnson & Johnson

MP-513: A mong DPP4 inhibitors, which are growing rapidly, optimal drug
for initial treatment, with both effective blood sugar control andease-of-use.
TA-7284: M akes possible new treatment strategy for diabetes(SGLT2 inhibitor)
Will implement marketing strategy to nurture these two drugs
as standards in diabetes treatment. (Will consider combination drug.)27

New Value Creation2 Advancing Domestic Operations, Centered on New Products

Information Provision System that Meets Diverse Customer Needs“T-Shaped” Marketing System

On-demand information provision system

Bolster cooperative work between MRs
and specialized MRs

Deeper information provided
	Evidence, appropriate usage information for new drugs

Information provision using ICT*
Cross media utilization

Products / Areas /Clinical department

Needs by type of customers

Generalist MRs
Deep information

Wide range

Doctors

Enhancingqualityandquantityof information

Inquiries /needs

Patients

Appropriate
usage

Pharmacists

Two-way
Distribution

Product information databaseICT useSpecialized MRs

Establishment of two-way network
New convention system using network* ICT: information and communication technology28

New Value Creation

3 Building a Foundation for the Expansion ofOverseas Operations

 Value Creation
Providing drugs that have value to many patients around the world29

3 Building a Foundation for the Expansion of Overseas Operations

New Value Creation

Area Strategy

Industriallydeveloped
markets	Following approval in U.S. / Europe, expand to emerging markets

F or drugs other than those above (circulatory and metabolism
diseases, etc.), after POC is acquired we will work to rapidly
maximize product value, using alliances, etc.
Overseas Sales

Innovative treatment
methods with medical
cost performance	Promotion of products suitable for late-stage development
and sales in-house(kidney diseases, critical / orphan diseases, etc.)

Fiscal 2011

Emerging
markets
Developmentin Asia, centeredon China

Royalty revenues(Gilenya, TA-7284)

Fiscal 2015	Following approval in Japan, expand to emerging markets(circulatory and metabolism diseases, etc.)
	Promotion of products meeting distinctive medical needs
in China / Asia
(chronic hepatitis, infectious diseases)
30

New Value Creation



3 Building a Foundation for the Expansion of Overseas Operations

New Products, Development Products for Expansion of Overseas Operations
Approval

Medium-Term Management Plan 11-15
MCI-1962020Hyperphosphatemia

MP-146Chronic kidney disease (Europe, U.S.)

MT-1303

MS (POC)

Considering new formulation, etc.

Autoimmune diseases (POC)

Promoting late-phase development

TRK-820[In-licensed products]

Radicut

MP-424

MP-513MP-214In-licensed

Advance late-state development

Refractory pruritus

Acute stage of cerebral infarction

Start of phase 3

Chronic hepatitis C

Start of phase 3

Start of phase 3

Type 2 diabetes mellitus

Schizophrenia31

3 Building a Foundation for the Expansion of Overseas Operations



New Value Creation

Industrially Developed Markets (U.S. / Europe)
Basic Strategies	Renal disease drugs (MCI-196, MP-146): In-house development
focused on specialist doctors.
	Establish new focus areas in addition to renal diseases(autoimmune diseases, etc.: MT-1303, etc.), bolster development system
	Aggressively secure management resources (functions, systems, products,
technologies) to bolster and expand operating base (TRK-820, etc.)Strengthen
product pipeline, with renal disease area positioned as beachhead forbusiness development in the U.S.

Establish
sales bases in 5 European countries (In addition to the U.K. and Germany,
newly establish in-house sales bases in France, Italy, Spain)						

Expand sales by acquiring approval in new regions and launching argatroban.

32

3 Building a Foundation for the Expansion of Overseas Operations



New Value Creation

Emerging Markets (China, Asia)
Basic Strategies	Rapidly launch products that have been approved in industrially developed market
	Aggressively in-license products that match characteristics / needs of each market

 uild in existing foundation with flexible yet optimal production, development,Band sales systems that match the Chinese market. Enhance market presence.
						

Work to accelerate development and achieve rapid launch							

Accelerate development of MP-424, aiming for rapid launch							Start rapid development of MP-513, MP-214, etc., launch Radicut							

 ccelerate initiatives such as the introduction of products in the area ofAhepatitis treatment
Build an independent growth organization that maximizes business value* South Korea, Taiwan, Southeast Asia

33

New Value Creation

4 Accelerating Operational and Structural Reforms

 Value Creation

Becoming a Company that Can Continue to Create New Value34

4 Accelerating Operational and Structural Reforms

New Value Creation

Accelerating Worksite, Structural, and Organizational Reforms

Research facility reorganization

Research
facilities

Construction of GLP facilities
Expansion of CMC research facilities
CMC clinical drug facility expansion, etc.
Construction of new building for solid formulations

Production

Head officeConstruction of new building for raw materials
Osaka head office building construction / relocation
Tokyo head office building (Nihonbashi, Sanban-cho) reorganization / relocation
Kashima office reorganization

Other

Further consolidation /reorganization of functional bases

Building streamlined systems and bolsteringorganizations / human resources that support themMedium-Term Management Plan 11-15

Establishment of new company for plasma derivative operations
Reorganization of other operations
Rearrangement of products handled
Steady implementation of improvement plan related to quality control problem

Strengthening / enhancing organizations, human resources
Strengthen human resources / organizations that can contribute to global business development35

4 Accelerating Operational and Structural Reforms

New Value Creation

Vaccine Business
From the perspective of disease prevention, contribute to society
by supplying vaccines

Mitsubishi Tanabe Pharma has the highest vaccine sales in Japan
Bolster domestic foundation, centered on relationship with BIKEN*
 ased on the sales foundation established to date, strive to maximize value as the top domestic brand,Bsuch as through joint development of a combination vaccine for four diseases
Independently in-license competitive products / technologies, link to new product development, etc.
based on cooperation with BIKEN

Mitsubishi Tanabe Pharma
Bolstering marketing systems
 ooperative ventures inCdevelopment, etc.
In-licensing of new products /technologies



BIKEN

Contribute tosociety fromthe perspectiveof disease
prevention

Top domestic vaccine brand	Stable vaccine development /production system* The Research Foundation for Microbial Diseases of Osaka University36

4 Accelerating Operational and Structural Reforms



New Value Creation

Generic Drug Business Strategy
Provide “Reliable Generics” that leverage the strengths of the Group’s
organizational foundation (new drugs, specialized areas)

Fiscal 2011

Fiscal 2015
Fiscal 2015 sales target:

Business strategies
1. Maximize sales of large-scale new products through cooperation
within the Group (Specialized areas of Tanabe Seiyaku Hanbai,
Mitsubishi Tanabe Pharma, Yoshitomiyakuhin, etc.)
1 Bolster cooperation with wholesalers and sales companies
2 Establish marketing foundation with dispensing pharmacies
3 Strengthen activities in Group priority areas

2. Build framework for production optimization
		 Cooperation with Choseido Pharmaceutical, which will handle production

3. Work to enhance presence, with consideration
for strategic cooperation¥50.0 billion

Cooperation within the Group

TanabeSeiyaku Hanbai(generics)
Yoshitomi
Mitsubishi
yakuhin
Tanabe Pharma(psychiatric area)(new drugs)

Choseido Pharmaceutical (production)37

New Value Creation

Numerical Targets

38

New Value Creation



Numerical Targets

Fiscal 2015 Numerical Targets
Fiscal 2011 forecasts

Fiscal 2015 objectives

Net sales¥405.0 billion¥500.0 billion

Operating income¥68.0 billion¥100.0 billion

R&D expenses¥69.0 billion¥80.0 billion

6%

15%+

Overseas sales ratio* On an operating income basis, we are aiming for an overseas sales ratio of 40% in fiscal 2015.

Overseas operations
Net Sales

Running royalties

Fiscal 2011

New products
Priority products

Fiscal 201539

Numerical Targets



New Value Creation

Investment Plan
Aggressive up-front investment to bolster foundation for sustained
growth and expand operations
Total investment
More than ¥100.0 billion over a five-year period(capital investment, in-licensing expenses)
Details of major capital investment

Continually
reinvesting
profits

	Consolidate / bolster production function
	Consolidate / bolster research function	Build Osaka head office	Restructure IT platform

R&D expenses¥75.0 billion to ¥80.0 billion / year(including above in-licensing expenses)
Advance strategic cooperation40

Numerical Targets



New Value Creation

Dividend Policy

The Company’s basic policy calls for providing a stable,
return to shareholders while striving to maximize enterprisevalue by aggressively investing in future growth.
Under this medium-term management plan, in addition to
profit growth, we will strive to raise the consolidated dividend
payout ratio (prior to amortization of goodwill) to 40% andexpand shareholder return.

41

New Value Creation

Together with Society

42

New Value Creation

Together with Society

Contributing to KAITEKI Society
As core health care company
in MCHC Group, contributeto realization of KAITEKI society

Contribute to realization of KAITEKI society
Health Care Solution

Using technologies /products within
the MCHC Group
Testing technology
Discovery support

Orchestrating
withinMCHC Group

Medical LEDs
Medical materials
Water for medical use

Diagnosis systems

Contribute to raising patient QOL
Functional
products

Health care

Materials

Mitsubishi Tanabe Pharma

Sustainability

Comfort
HealthMCHC Group43

Together with Society

New Value Creation

Striving to be a Company That is Trusted by Communities

By steadily implementing the business improvement plans related to
the Medway problem and the quality control problem, we will strive tostrengthen the overall management foundation and on-site capabilities ofthe Mitsubishi Tanabe Pharma Group, reform our organizational culture,
prevent a recurrence, and regain trust.
We will raise the effectiveness of our improvement plans through theinspection and advice of outside committees. Further, we will ensuretransparency by providing status reports to the public.

On a foundation of “regaining the trust of society” and “securing
quality and safety,” we will be a company that fulfills its social
mission—contributing to improvements in patients’ QOL by“manufacturing and providing pharmaceuticals.”44Together with Society

New Value Creation

Contributing to the Sustainability of Society
Fulfilling our social mission—Contributing to improvements in patients’ QOL
Continuing to be a good corporate citizen
Contributing to society through growth as a company

Fostering “social” sustainability
Patients
Medical professionals
Doctors
Pharmacists

Contributing to improvements in patient‘s QOL
ResearchPartners
Wholesalers
Suppliers

MarketingReliability
guarantee / control

Academics
Universities

Co
rpo
r

Developmentate

phi l oMits
Stockholders
Investors

sop h y /ub i s h i

ManufacturingeOu r V i s i on / Co rpor ate B

ha vi

Tanabe Pharma Corpora
Society

or

ter
r
a
Ch

Local communities
NPOt i onNaturalenvironment
45

New Value Creation

New Value Creation
Becoming a “Company that Can Continue to Create New Value”

46

New Value Creation47

New Value Creation

Cautionary Statement
The statements contained in this presentation is based on a number ofassumptions and belief in light of the information currently available
to management of the company and is subject to significant risks anduncertainties. Actual financial results may differ materially from these
forecasts depending on a number of important factors.

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