November 30, 2015
Press release
Company name: Mitsubishi Tanabe Pharma Corporation
Representative: Masayuki Mitsuka
President and Representative Director
Code number:Contact:

4508, First Section, Tokyo Stock Exchange
Yoshifumi Mifune, General Manager,
Corporate Communications Department
TEL: +81-6-6205-5211

Formulation of the Medium-Term Management Plan 16-20: Open Up the Future
Mitsubishi Tanabe Pharma Corporation (President & Representative Director, Masayuki Mitsuka) has
formulated the “Medium-Term Management Plan 16-20: Open Up the Future,” which covers theperiod to fiscal 2020.

1. Overview of the Medium-Term Management Plan 16-20
Through the “Medium-Term Management Plan 11-15: New Value Creation,” which was formulated in2011, Mitsubishi Tanabe Pharma bolstered the foundation of its stage for future growth. In Japan, theCompany added seven new products to its lineup. Overseas, growth was recorded by out-licensed
drugs—Gilenya®, a multiple sclerosis treatment agent, and INVOKANA®*, a type 2 diabetes mellitus
treatment agent—and the royalty revenues from these products became a pillar of the Company’s
earnings. In addition, the Company consolidated and reorganized a range of functions, including theresearch, manufacturing, and head office functions, and accelerated reforms targeting a strong
management system.

Mitsubishi Tanabe Pharma has now formulated the “Medium-Term Management Plan 16-20: OpenUp the Future,” which is based on the concept of further strengthening that foundation and targetingsustained growth by taking independent steps to open up the future.

The business environment in the domestic ethical drugs industry is changing rapidly, and initiatives
limited to past business practices will not lead to the achievement of sustained growth. In the U.S., theworld’s largest pharmaceutical market, we must rapidly build a foundation for sustained growththrough in-house sales. Accordingly, we will aggressively implement business investment and R&Dinvestment. In addition, in the domestic market, by strengthening IKUYAKU (Drug Fostering and1Evolution) and marketing, we will work to maximize value and enhance our presence in priority
products and priority disease areas, such as the type 2 diabetes mellitus treatment agents Tenelia®
and Canaglu®*.

Mitsubishi Tanabe Pharma has identified four strategic priorities to Open Up the Future in the newmedium-term management plan—Maximizing Pipeline Value, Strengthening IKUYAKU(DrugFostering and Evolution) and Marketing, Accelerating U.S. Business Development, and Reforming
Operational Productivity. On that basis, the Company will implement reforms to become a “company
that works with a sense of speed and is the first to deliver differentiated value.”®

*A type 2 diabetes mellitus treatment agent discovered by the Company and sold under the name INVOKANA in the U.S. and®

Canaglu in Japan.

(1) Name and Period
Name: Medium-Term Management Plan 16-20: Open Up the Future
Period: April 2016 - March 2021 (5 years)(2) Key Concept22. Four Strategic Priorities to Open Up the Future(1) Maximizing Pipeline Value: Creating Differentiated Value as Rapidly as Possible<“R&D process reforms” & “Expansion of medical and discovery technologies”>• We will expand discovery seeds by aggressively leveraging the open shared business through thein-licensing of discovery seeds and the implementation of collaboration with other organizations.
In addition, we will utilize the optimal method for each candidate and shorten the period required
until acquisition of POC. In these ways, we will create 10 candidates that will advance tolate-stage development under this medium-term management plan.
• The Company’s R&D areas have included autoimmune diseases and central nervous systemdiseases. In addition to these areas, we also focus on vaccines and orphan diseases and work to
discover new drugs that address unmet medical needs. In these ways, we strive to further
enhance our presence in areas in which we can leverage our strengths.
• Centered on our ability to discover drugs in-house, we will utilize new discovery technologies insuch fields as next-generation therapeutic antibodies, protein pharmaceuticals, nucleic acid drugs,vaccines, and gas pharmaceuticals. In addition, by extending our focus into new types ofmedicine and discovery fields, such as regenerative medicine and preemptive medicine, we will
expand drug discovery opportunities worldwide, with the U.S. market as our main target.

(2) Strengthening IKUYAKU (Drug Fostering and Evolution) and Marketing:
Delivering Differentiated Value to Patients<“Maximizing product value” & “Strengthening sales promotions”>• We will aim to quickly launch drug candidates and to rapidly maximize post-marketing productvalue by aggressively conducting clinical research, with a focus on product lifecycle from thedevelopment stage. In the area of autoimmune diseases, we will work to maintain a No. 1 position
through additional indications and additional dosages for existing priority products Remicade® andSimponi®. In the area of diabetes and kidney diseases, we will aim for a No. 1 presence byobtaining evidence and expanding sales channels for priority products Tenelia® and Canaglu®. In
this way, we will strive to achieve consolidated domestic pharmaceutical sales of ¥300.0 billion by
fiscal 2020, increase our new drugs and priority products sales ratio to 75%, and achieve furthergrowth.
• By strengthening sales promotions, we will further enhance our specialized expertise in priority
disease areas and advance area marketing. In this way, we will track needs in each area and3

contribute to medical collaboration with major hospitals and primary care clinics.

(3) Accelerating U.S. Business Development: Build Foundation for Sustained Growth<“Establishing operational foundation” & “Building product lineup”>• In Japan, an additional indication for Radicut® (development code: MCI-186) for amyotrophic
lateral sclerosis (ALS) was approved in June 2015. In the U.S., we will aim to rapidly obtainapproval and launch MCI-186 in fiscal 2016. This will be our first step in acquiring approval for
in-house products in the U.S., accordingly, it will be our highest priority.
• With MCI-186 as our first step, we will build a lineup of products for central nervous systemdiseases and orphan diseases and build a sales system focused on specialist physicians. In
these ways, we will establish the necessary functions. To build a business foundation in the U.S.,
during the period covered by the medium-term management plan, we will invest more than¥200.0 billion, including M&As. We will strive to achieve U.S. sales of ¥80.0 billion in 2020.
• In addition to drugs discovered in-house (including Medicago and Tanabe Research Laboratories
U.S.A.), we will acquire drugs and drug candidates through a variety of collaborative relationships
with academic institutions, venture companies, and pharmaceutical companies. In these ways,
we will build up our product lineup in the U.S.

(4) Reforming Operational Productivity: Realizing a Corporate Culture with a Senseof Speed and Profit Structure<“Cost reductions” & “Utilization of human resources”>• We will continue to implement administrative process reforms, aiming for a consolidated domestic
workforce of 5,000 employees. In addition, we will reduce costs and optimize the cost of sales. In
these ways, by fiscal 2020, we will further reduce costs by a further ¥20.0 billion in comparisonwith fiscal 2015.
• We will work to increase productivity in research, development, MR activities, and medical scienceliaison activities. In addition, we will enhance the capabilities of employees in indirect departments.
We will also strengthen our human resources in the U.S. to expand our business in that market.
Furthermore, we will take steps to enhance career opportunities for a diverse range of employees,including fostering opportunities for women (diversity and inclusion).

43． Financial Guidance
FY 2020 objectives(Reference)
FY 2015 forecasts

Net sales¥500.0 billion¥411.0 billion

Core operating income¥100.0 billion¥88.0 billion

Net income attributable
to shareholders ofthe Company¥70.0 billion¥47.0 billion

R&D expenses¥80.0 billion¥70.0 billion

40%

25%

Overseas sales ratio* Calculations in accordance with IFRS. (Fiscal 2015 forecasts have been recalculated on the same basis.)

4． Strategic Investment
The Company’s basic policy calls for enhancing shareholder returns in a stable, ongoing manner while
striving to increase enterprise value by aggressively implementing strategic investment and R&D
investment with a focus on sustained growth. Under this medium-term management plan, theCompany will pay dividends in accordance with profit growth over the medium to long term, with atarget of 50% for the consolidated dividend payout ratio (IFRS).

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