Summary of 2nd Quarter Financial Results for year ended March 31, 2013
(Japan GAAP) (Unaudited)

October 29, 2012

Company name:
Stock exchange listings (Section):
Securities code number:
URL:
Representative:

Mitsubishi Tanabe Pharma Corporation
Tokyo, Osaka (First Sections)4508

http://www.mt-pharma.co.jp/
Name: Michihiro Tsuchiya
Title: President and Representative Director
Name: Yoshihisa Sasou
Title: General Manager, Corporate Communications Department
Telephone: (06) 6205-5211

For further information, please contact:

Planned date of filing of quarterly securities report: November 5, 2012
Planned date of start of dividend payments: December 3, 2012
Provision of supplementary explanatory materials for quarterly results: Yes
Quarterly results presentation: Yes (for institutional investors and investment analysts)
Notes; Amounts less than \ 1 million have been rounded.
Percentage changes in the list show change in comparison with the previous 2nd quarter.

1. Results for 2nd Quarter (April 1, 2012 to September 30, 2012)(1) Consolidated Business Results
Net sales
2nd Quarter of
Fiscal 2012
2nd Quarter of
Fiscal 2011

Operating income% change

Yen million% change

Yen million% change

203,829

1.7

32,246(10.6)

33,119(8.9)

200,358(2.1)

36,051(10.2)

36,373(10.1)Net income
2nd Quarter of
Fiscal 2012
2nd Quarter of
Fiscal 2011

Ordinary income

Yen million

Net income per share

Yen million% change

Yen

Net income per share (diluted)
Yen

19,492

(2.4)

34.75

-

19,963(12.1)

35.58-(Note) Comprehensive Income \20,084 million, 4.4%

(2) Consolidated Financial Position

Total assets
Yen million(\19,236 million, 0.7% in 2nd Quarter of fiscal 2011)
Net assets

Equity ratio

Yen million%

837,313728,706
819,925
721,485(Note) Shareholders' equity \724,457 million (\715,745 million in fiscal 2011)

86.5
87.3

As of September 30, 2012
As of March 31, 2012

2. Dividends
Dividends per share
1st Quarter
2nd Quarter
3rd Quarter
Year-end
Yen
Yen
Yen
Yen
Fiscal 2011
15.00
20.00
Fiscal 2012
20.00
Fiscal 2012(projected)
20.00(Note) Revision to recently announced dividend forecast: No(Record date)

For the year

Yen
35.00
40.00

3. Forecasts for Fiscal 2012 (April 1, 2012 to March 31, 2013)
Full year

Net sales
Yen million% change
425,000
4.4

Operating income
Yen million% change
70,0001.4

Ordinary income
Yen million% change
71,0003.3

Net income
Net income per share
Yen
Yen million% change
Full year
40,5003.8
72.19(Note) Revision to recently announced consolidated results forecast: Yes※ Notes(1) Significant change involving subsidiaries during the period: No(Change in designated subsidiaries accompanying changes in the scope of consolidation)(2) Application of special accounting methods in the preparation of quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and restatements
1. Change accompanying revision of accounting standards: No
2. Other changes: Yes
3. Change in accounting estimates: Yes
4. Restatements: No(Note)
Changes fall under Article 10(5) of the Ordinance on Terminology, Forms and Preparation Methods ofQuarterly Consolidated Financial Statements. For details, please refer to “(1) Changes in accounting
policies, changes in accounting estimates, and restatements” under “2. Items Concerning Summary
Data (The notes)” on page 5.
(4) Number of shares issued (common stock)
1. Number of shares issued at the end of the period (including treasury stock)
2nd Quarter of fiscal 2012
561,417,916 sharesFiscal 2011
2. Number of shares of treasury stock at the end of the period
2nd Quarter of fiscal 2012
432,681 sharesFiscal 2011

3. Average number of shares of during the period (quarter)
2nd Quarter of fiscal 2012
560,994,305 shares

2nd Quarter of fiscal 2011

561,417,916 shares
423,532 shares
561,064,468 shares*Note regarding implementation of quarterly review procedures
At the time when this summary of 2nd quarter financial results was released, the review procedures were in progress
for the quarterly financial statements in accordance with the Financial Instruments and Exchange Act.
*Explanation regarding the appropriate use of results forecasts and other matters of special note
(Note about forward-looking information)
In these materials, forecasts of results and other statements about the future are forward-looking statements based ona number of assumptions and beliefs in light of the information available to management as of the date of releaseof the materials and are subject to risks and uncertainties. Accordingly, the Company cannot make promises to achieve
such forecasts. Actual financial results may differ materially from these forecasts depending on a number ofimportant factors.
For matters related to results forecasts, please see page 4.
(Methods of obtaining the supplementary materials and the content of the results presentation)
・Supplementary materials are disclosed on TDnet on the same day and are made available on the Company's website.
・The Company plans to hold a results presentation (conference call) for institutional investors andsecurities analysts on October 29, 2012 (Monday).
The Company plans to make available on its website the content of the presentation (sound)and the presentation materials immediately after the presentation is held.

Contents of supplement

１．

Qualitative Information for 2nd Quarter of FY2012 ·················································· 1(1) Qualitative information about consolidated results of operations ································ 1(2) Qualitative information about consolidated financial position ···································· 3(3) Qualitative information about consolidated results forecasts ····································· 4２．

Items Concerning Summary Data (The notes) ························································· 5(1) Changes in accounting policies, changes in accounting estimates, and restatements ······ 5３．

Consolidated Financial Statements········································································ 6(1) Consolidated Balance Sheets ················································································ 6(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income ······················································································· 8Consolidated Statements of Income ····································································· 8Consolidated Statements of Comprehensive Income ··············································· 9(3) Consolidated Statements of Cash Flows································································ 10(4) Note regarding going concern assumption ······························································ 11(5) Note regarding substantial change in shareholders' equity ······································· 11

１．[Qualitative Information for 2nd Quarter of FY2012](1) Qualitative information about consolidated results of operations
Consolidated operating results in the second quarter of the fiscal year ended March 31, 2013 (April 1,2012 to September 30, 2012) were as follows.
(millions of yen)
2nd quarter of
FY 2011

2nd quarter of
FY2012

Increase/
Decrease% change

Net Sales

200,358

203,829

3,471

1.7

Cost of sales

74,437

79,260

4,823

6.5

37.2%

38.9

Gross profit

125,921

124,569(1,352)(1.1)

SG&A expenses

89,87092,3232,453

2.7

Operating Income

36,051

32,246(3,805)(10.6)

Non-operating
income/loss

322

873

551

Ordinary Income

36,373

33,119(3,254)Extraordinary
income/loss(3,292)(2,443)849

Net Income

19,963

19,492(471)

Cost of sales ratio

(8.9)

(2.4)

【Net sales】
Net sales increased 1.7%, or ¥3.4 billion, year-on-year, to ¥203.8 billion.
(millions of yen)Pharmaceuticals

2nd quarter of

2nd quarter of

Increase/%

FY 2011

FY 2012

Decreasechange195,414200,736

5,322

2.7

Domestic ethical drugs

175,698

176,618920

0.5

Overseas ethical drugs

9,148

10,163

1,015

11.1

OTC products

2,885

2,808

(77)

(2.7)

Others in Pharmaceuticals

7,683

11,147

3,464

45.1

4,944

3,093

（1,851)(37.4)

OthersIn the pharmaceuticals segment, net sales were ¥200.7 billion, up 2.7%, or ¥5.3 billion, year-on-year.

・

Although there were the NHI drug price revisions implemented in April 2012 and the growing
impact of generics, in domestic sales of ethical drugs, sales were expanded by Remicade, ananti-TNF α monoclonal antibody. In addition, Telavic, for the treatment of chronic hepatitis C,
and other new drugs which were launched last year began to make contributions. The Company
launched Tenelia, for the treatment of type2 diabetes mellitus, in September 2012. As a result,the domestic sales of ethical drugs were ¥176.6 billion, up 0.5%, year-on-year.

・Overseas sales of ethical drugs increased 11.1%, year-on-year, to ¥10.1 billion, and sales of OTC-1-

products decreased 2.7%, year-on-year, to ¥2.8 billion.

・

Sales of others in pharmaceuticals increased 45.1%, year-on-year, to ¥11.1 billion due to theincrease in royalty revenue from Gilenya, for the treatment of multiple sclerosis, licensed to
Novartis.

In others, sales were down 37.4%, or ¥1.8 billion, year-on-year, due to the transfer of fine chemical
operations in July, 2012.

【Operating income】
Operating income decreased 10.6%, or ¥3.8 billion, year-on-year, to ¥32.2 billion.

・

Although net sales increased ¥3.4 billion, year-on-year, gross profit decreased ¥1.3 billion,
year-on-year, to ¥124.5 billion due to the influence of NHI drug price revisions and other factors.
The cost of sales ratio worsened by 1.7 percentage points.

・

SG&A expenses increased ¥2.4 billion, year-on-year, to ¥92.3 billion, due to the increase in R&D
expenses and the increase in sales expenses with the amortization of distribution rights for new
products launched last year. R&D expenses were ¥34.2 billion, accounting for 16.8% of net sales.

【Ordinary income and net income】
Ordinary income was down 8.9%, or ¥3.2 billion, year-on-year, to ¥33.1 billion, and net income wasdown 2.4%, or ¥0.4 billion, year-on-year, to ¥19.4 billion.

・Extraordinary income was ¥1.2 billion, including gain on sales of property, plant andequipment.

・Extraordinary losses were ¥3.6 billion, including loss on business integration of the plasma
fractionation operations of ¥2.2 billion, and loss on valuation of investment in securities of ¥0.7
billion. In the previous fiscal year, the Company recorded extraordinary losses of ¥3.2 billion,
such as loss on impairment of fixed assets.

【Comprehensive income】
Net income before minority interests was ¥19.5 billion, due to other comprehensive income of ¥0.5
billion, and comprehensive income of ¥20.0 billion. Comprehensive income attributable toshareholders of the Company was ¥19.9 billion.

【Other】

On September 28, 2012, the consolidated subsidiary Benesis Corporation received a business
improvement order based on the Pharmaceutical Affairs Law from the Minister of Health,Labour and Welfare, for deviations in the packaging process on part of pharmaceutical productsthat were manufactured in Kyoto Plant of Benesis Corporation (Fukuchiyama City, Kyoto)
under the permission of manufacturing and sales.
The Group will give serious efforts to prevent a recurrence and work to regain the trust ofsociety.

-2-(2) Qualitative information about consolidated financial position【Balance sheets】(millions of yen)
End of 2nd quarterEnd of FY 2011
(As of March 31, 2012)

of FY 2012
(As of September 30,
2012)

Current assets

419,651444,323

24,672

Fixed assets

400,274

392,990(7,284)

819,925

837,313

17,388

Liabilities

98,440108,607

10,167

Net assets

721,485

728,706

7,221

819,925

837,313

17,388

Total assets

Total liabilities and net assets

Increase/
Decrease

Total assets at the end of the second quarter were ¥837.3 billion, an increase of ¥17.3 billion from theend of the previous fiscal year. Major factors causing changes in the balance sheet in comparison withthe previous year-end were as follows.

・Marketable securities for investment purposes and inventories increased. Consequently, total
current assets were up ¥24.6 billion, to ¥444.3 billion.

・Prepaid pension expenses and property, plant and equipment decreased. Consequently, total
fixed assets were down ¥7.2 billion from the previous fiscal year-end, to ¥392.9 billion.

・

Notes and accounts payable-trade and income taxes payable increased. Consequently, total
liabilities were up ¥10.1 billion, to ¥108.6 billion.

・

Total net assets were up by ¥7.2 billion, to ¥728.7 billion. Net income was ¥19.4 billion, anddividends paid totaled ¥11.2 billion. As a result, retained earnings increased ¥8.2 billion. In
addition, minority interests were down by ¥1.4 billion. The equity ratio was 86.5%, comparedwith 87.3% a year earlier.

-3-

【Cash flows】(millions of yen)
2nd quarter of

2nd quarter of

Increase/

FY 2011

FY 2012

Decrease

Operating activities

16,39433,25016,856

Investing activities(44,579)(19,015)

25,564

Financing activities(8,670)(12,668)(3,998)Change in cash and cash equivalents(36,776)

1,565

38,341

At beginning of year

97,88054,344(43,536)

At end of year

61,10455,909(5,195)

Net increase in cash and cash equivalents was ¥1.5 billion, and the balance of cash and cash
equivalents at the end of the period under review was ¥55.9 billion.

・ Net cash provided by operating activities was ¥33.2 billion. Cash inflows included income before
income taxes and minority interests of ¥30.6 billion, notes and accounts payable-trade of ¥7.1
billion, amortization of goodwill of ¥5.0 billion, and depreciation and amortization of ¥4.3 billion,
while cash outflows included increase in inventories of ¥10.3 billion and income taxes paid of ¥7.0
billion.

・ Net cash used in investing activities was ¥19.0 billion, due to purchase of marketable securities
and investment in securities or proceeds from sales of marketable securities and investment insecurities for investment purposes.

・ Net cash used in financing activities was ¥12.6 billion, due in part to dividends paid.
(3) Qualitative information about consolidated results forecasts
In consideration of results in the first half of the current fiscal year and recent situations of sales, theCompany has revised its full-year forecasts results that announced on May 8, 2012. The forecasts havebeen revised as follows.
(April 1, 2012 to March 31, 2013)(millions of yen)
Net sales

Operating

Ordinary

incomeincomeNet income
Net income

per share(yen)

Forecasts announced
previously (A)429,000

70,00070,00040,50072.19

Revision of forecasts (B)425,000

70,00071,00040,50072.19

Increase/Decrease (B)-(A)(4,000)

－

1,000

－

－

(0.9)

－

1.4

－

－

407,156

69,04368,75939,01469.54% change(Reference)Results ofprevious fiscal year
(Fiscal 2011)

Sales proceeded as planned mainly in domestic ethical drugs in the first half of the current fiscal year.

-4-There was the growing impact of generics and the start-up sales of some new drugs were less thaninitial expectation. Consequently, the forecasts of sales have been revised downward.

As to eachprofit targets, the revised forecasts will secure the initial forecasts due to the review of SG&A
expenses.

２．[Items Concerning Summary Data (The notes)](1)

Changes in accounting policies, changes in accounting estimates and restatements(Changes in depreciation method of property, plant and equipment)
Previously, the Company and the domestic consolidated subsidiaries calculated depreciation of property,
plant and equipment - except for buildings acquired on or after April 1, 1998, including equipment
attached to the buildings - primarily by the declining-balance method. However, from the first quarter ofthe current consolidated fiscal year, the Company and domestic consolidated subsidiaries have changed
it to the straight-line method.
The Company expects new drugs launched in the previous consolidated fiscal year to make acontribution to sales in the current consolidated fiscal year. In addition, the Company plans to launch
multiple drugs of new types in the next fiscal year and thereafter. In the Group's operating environment,
there are demands for the strengthening of safety measures after products are manufactured and sold.
In this environment, the Group's policy is to rapidly collect and accumulate safety and efficacy data forthe purpose of promoting the appropriate usage of these new drugs, and to conduct sales while
formulating further safety measures as needed. Accordingly, the trend toward more-gradual growth inrevenues/profits will steadily strengthen.
In addition, in October 2011, the Group formulated “Medium-Term Management Plan 11-15 ~New Value
Creation” of which fiscal 2015 will be the final year, and announced aggressive upfront investment tostrengthen its foundation and expand its business toward sustained growth. The Group undertakes
full-scale implementation of this investment plan from the current consolidated fiscal year.
At this turning point, through deliberations regarding the reevaluation of the depreciation method, theGroup confirmed that its product lines are expected to secure stable revenues/profits over the long term;that its property, plant and equipment are, in general, in stable operation; and that the upfront
investment will contribute to further stable operation through consolidation and strengthening ofproduction equipments.
Accordingly, in the judgment of the Group, the allocation of expenses through uniform depreciation overthe useful life of the property, plant and equipment will enable the actual usage conditions of the Group's
property, plant and equipment to be reflected appropriately. Therefore, the Group reevaluated theprevious depreciation method and decided to use the straight-line method from the first quarter of thecurrent consolidated fiscal year.
In comparison with the previous method, in the first half of the current fiscal year, this change had theeffect of increasing gross profit, by ¥529 million, operating income by ¥1,143 million, and ordinary
income and income before income taxes and minority intersts by ¥1,164 million, respectively.

-5-3. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)Year
Accounts

As of

As of

March 31, 2012

September 30, 2012

AmountAmountAssetsCurrent assets
Cash and time deposits

15,466

15,213

Notes and accounts receivable, trade127,207

127,984

Marketable securities

46,34562,644Merchandise and finished goods

64,25968,202897

878

Raw materials and supplies

21,03424,506

Deposits

130,791

131,177

Deferred income taxes

9,343

9,710

Other

4,350

4,050

(41)

(41)

419,651444,323

Buildings and structures, net

37,522

36,991

Machinery, equipment and vehicles, net

15,34814,471Tools, furniture and fixtures, net

4,040

4,268

Land

46,35944,512

Leased equipment, net

66

69

Construction in progress

594

1,727

103,929

102,038

Goodwill

105,549

104,690

Other

3,806

4,219

109,355

108,909

Investment in securities

116,596

115,044

Deferred income taxes

7,898

9,465

Prepaid pension expenses

42,10139,791

Other

20,397

17,745(2)(2)

Total investments and other assets

186,990

182,043

Total fixed assets

400,274

392,990819,925

837,313Work in process

Less allowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment

Total property, plant and equipment
Intangible fixed assets

Total intangible fixed assets
Investments and other assets

Less allowance for doubtful receivables

Total assets-6-

(millions of yen)Year
Accounts

As of

As of

March 31, 2012

September 30, 2012

AmountAmountLiabilities
Current liabilities
Notes and accounts payable, trade28,87835,965

Short-term debt

2,170

740

Accounts payable, other

15,723

16,155

Income taxes payable

6,726

13,217

Reserve for employees' bonuses

11,121

10,769

212

150

Other

4,754

4,531

Total current liabilities

69,584

81,527

Other reserve

Long-term liabilities
Deferred income taxes

9,338

9,002

Accrued retirement benefits for employees

10,584

10,013

Reserve for health management allowances for
HIV compensation

1,461

1,461

Reserve for health management allowances for
SMON compensation

3,622

3,357

Reserve for HCV litigation

2,520

1,872

Other

1,331

1,375

Total long-term liabilities

28,85627,080Total liabilities

98,440108,607

Common stock

50,00050,000Capital surplus

451,186

451,186

Retained earnings

224,168

232,441

Net assets
Shareholders' equity

(486)

(486)

724,868

733,141

Unrealized holding gains (losses) on securities

(82)

599

Deferred (losses) gains on hedges

93

(368)

Treasury stock, at cost
Total shareholders' equity
Accumulated other comprehensive loss

Translation adjustments(9,134)(8,915)

Total accumulated other comprehensive loss

(9,123)(8,684)

Minority interests
Other
Total liabilities and net assets

-7-

5,740

4,249

721,485
819,925

728,706
837,313

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(millions of yen)Year
Accounts

April 01, 2011-

April 01, 2012-

September 30, 2011

September 30, 2012

AmountAmount200,358

Net sales

203,829

Cost of sales

74,437

79,260Gross profit

125,921

124,569

Advertising expenses

1,841

2,018

Sales promotion expenses

5,159

4,894

Salaries and allowances

13,517

13,560

Provision for bonuses

5,895

5,658

Retirement benefit expenses

2,611

2,787

Depreciation and amortization

810

635

33,563

34,236

Selling, general and administrative expenses

Research and development expenses
Amortization of goodwill

5,066

5,063

Other
Total selling, general and administrative expenses

21,40889,87023,472
92,323Operating income

36,051

32,246

Interest income

764

826

Dividend income

435

412

Equity in earning of affiliates

171

456

Other

655

652

2,025

2,346

Non-operating income

Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss
Donations

9

22

450

286

191

271

Other

1,053

894

Total non-operating expenses

1,703

1,473

36,373

33,119Gain on sales of property, plant and equipment-

646

Gain on transfer of business-

354

Gain on sales of investment in securities-

201

Total extraordinary income

-

1,201

Ordinary income
Extraordinary income

Extraordinary loss

-

2,219

50

745

2,923

305

-

123

319
3,292

252
3,644

Income taxes-deferred

33,081
10,4172,563

30,676
13,484(2,367)

Total income taxes

12,98011,117

Net income before minority interests

20,101

19,559Minority interests

138
19,96367
19,492

Loss on business integration
Loss on valuation of investment in securities
Loss on impairment of fixed assets
Loss on sales of investment in securities
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current

Net income-8-

(Consolidated Statements of Comprehensive Income)(Millions of yen)Year
Accounts

April 01, 2011-

April 01, 2012-

September 30, 2011

September 30, 2012

AmountAmount20,101

19,559Unrealized holding gains (losses) on securities

(466)

685

Deferred (losses) gains on hedges

(606)

(461)

Translation adjustments

190

304

Net income before minority interests
Other comprehensive income (loss)

Other comprehensive loss of equity method companies
attributable to the Company
Total other comprehensive income (loss)
Comprehensive income

17

(3)

(865)
19,236525
20,08419,096140

19,931153

Comprehensive income (loss) attributable to:Shareholders of the Company
Minority interests-9-(3) Consolidated Statements of Cash Flows(millions of yen)Year
Accounts

April 01, 2011-

April 01, 2012-

September 30, 2011

September 30, 2012

Cash flows from operating activities:
Income before income taxes and minority interests

33,08130,676

Depreciation and amortization

5,830

4,361

Loss on impairment of fixed assets

2,923

305

Amortization of goodwill

5,066

5,063

Increase (decrease) in accrued retirement benefits for employees

(617)

(572)

Decrease (increase) in prepaid pension expenses

(830)

2,310

Increase (decrease) in reserve for HCV litigation(1,708)(648)Interest and dividend income(1,199)(1,238)95(558)

Loss (gain) on transfer of business

-

(354)

Loss (gain) on sale of investment in securities

-

(78)

Loss (gain) on sale of property, plant and equipment

Loss (gain) on valuation of investment in securities
Equity in (earnings) losses of affiliates
Loss on business integration
Decrease (increase) in notes and accounts receivable, trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable, trade

50

745

(171)

(456)

-

2,219

996

(750)

(6,174)(10,309)

2,736

7,108

Increase (decrease) in accounts payable, other(3,679)(131)

Other, net(6,016)

1,305

Subtotal

30,38338,998Interest and dividends received

1,277

1,305

Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

(7)

(20)

(15,259)(7,033)

16,39433,250Cash flows from investing activities:(18,897)(31,000)

Proceeds from sales and redemption of marketable securities

47,60820,470

Increase in time deposits(1,297)(44)

Decrease in time deposits

10,110587(76,538)(354)

Purchase of marketable securities

Increase in deposits
Increase in long-term deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

(406)

-

(6,093)(3,716)65

2,600

Purchase of intangible fixed assets

(400)

(999)

Purchase of investment in securities(1,119)(4,173)Purchase of investment in subsidiaries
Proceeds from sales and redemption of investment in securities
Proceeds from transfer of business
Other, net
Net cash provided by (used in) investing activities-(5,840)

2,411

2,061

-

1,384

(23)

9

(44,579)(19,015)

Cash flows from financing activities:
Increase (decrease) in short-term debt, net
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(757)(1,432)(7,854)(11,219)

(59)

(17)

(8,670)(12,668)

79(2)

Net increase (decrease) in cash and cash equivalents(36,776)

1,565

Cash and cash equivalents at beginning of the year

97,88061,10454,34455,909Cash and cash equivalents at end of the period- 10 -

(4) Note regarding going concern assumption
Not applicable.
(5) Note regarding substantial change in shareholders' equity
Not applicable.

- 11 -