Thursday, February 21, 2013 from 5:30pm to 6:20pm
Michihiro Tsuchiya, President & Representative Director, CEOKuniaki Kaga, Representative Director, Senior Managing Executive Officer, Division
Manager of Research Division
Kenichi Yanagisawa, Board Director and Senior Managing Executive Officer, Division
Manager of Sales & Marketing Division
Kenkichi Kosakai, Board Director and Managing Executive Officer, Corporate Management
Masayuki Mitsuka, Board Director and Managing Executive Officer, Division Manager ofDevelopment Division
Takashi Kobayashi, Board Director and Managing Executive Officer, Business Unit,
Responsible for Special Assignments from the PresidentSeiichi Murakami, Managing Executive Officer, Global Product Strategy Department[Progress of the Medium-Term Management plan 11-15]
Fiscal 2015 numerical management objectives
Q/ The first two years have almost passed. How do you evaluate the first two years’
performance?
A/ In the domestic markets, several new products were launched in Japan during the firsttwo years; Sales of Remicade, one of our priority products, expanded its sales as planned.
In overseas markets, Gilenya, licensed out to Novartis, has become a blockbuster. In theremaining three years of the plan, we will nurture the priority products and new products andmaximize the products values.

Q/ The sales target for FY2015 is ¥500 billion and operating income target is ¥100 billion. Do
you expect that the company can achieve these targets? And is there any possibility thecompany will revise the targets?
A/ At this time, we have no plans to change the initial targets for FY2015. There are several
factors that had not been taken into account when we announced the plan. Among them areslower-than-expected sales of ethical drugs in Japan due to the government’s policy ofpromoting the use of generic products; integration of our plasma fractionation operations
with the Japanese Red Cross Society, and transfer of the fine chemical operations to othercompanies. On the other hand, royalty revenues from overseas companies have been1

increasing at a greater-than-expected pace, while TA-7284, a drug for type-2 diabetes, isexpected to be approved in the near future both for domestic and overseas market. Given
these plus factors, we have no immediate plan to revise the FY2015 numerical objectives.
We will stick to the targets in our management.

Q/ Do you expect that you can achieve the goal of raising the ratio of overseas sales to morethan 15% of the company’s overall sales?
A/ We think that it’s possible to achieve the 15% target, which includes royalty revenues
from overseas companies.

Q/ How are you going to reform the company’s cost structure?
A/ We are working on increasing business efficiency in indirect divisions and on enhancing
cost competitiveness in the fields of research and production.

Q/ Can you explain the optimization of the number of employees? Have there been any
changes in the number of employees at Mitsubishi Tanabe Pharma since the 2007 merger?
And how many employees are expected to be as of fiscal 2015?
A/ The number of employees is projected to be about 9,000 at the end of FY2012 ending
March 31, which represents a decline of some 1,000 employees from the 2007 merger. The
decline of 1,000 mainly affects employees in Japan. The consolidated number is projected
at about 9,000 at the end of fiscal 2015, roughly the same as the current level. The numberof employees will be prevented from exceeding the current 9,000 level through businessefficiency.

Marketing
Q/ New products sales has been apparently growing at a sluggish pace. How do you see thesituation?
A/ We have launched several new products in the past two years as planned. We areconfident that markets will give positive marks to this. How we can expand sales of thesenew products is the next important challenge for us. These new products are those aimed atmeeting “unmet medical needs” and “only-one” products that can’t be replaced by any otherdrugs. Only one year into the marketing, these products have yet to see significant growth.
Both Lexapro and Simponi have been received favorably in the market and their sales havebeen put on a steady growth track. As for Tenelia, we are cooperating with our sales partner
Daiichi Sankyo to expand its sales following the lifting of a ban in September this year on

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long-term prescription. But our prospects for Telavic are bleak. Its sales chalked up so far
are smaller than our initial expectations.
Q/Please explain the marketing strategy, multi-marketing channels for “mature“ products,
long-listed drugs except priority products. Specifically, what would you do about suchproducts?
A/ “Mature” products are major revenue sources for our company. To maintain the current
level of profits derived from such products, we will implement a set of measures. The
measures we’ll take are ones that don’t require MR’s activity. Specifically, we will use IT tools
and make active use of outside resources such as a contract sales organization (CSO).
Doing this would enable us to establish a smooth information provision system and an
efficient product-supply system.

Q/ Do you have any plans to curtail the number of MRs from the current 2,200?
A/ We intend to maintain the current number of MRs. As the environment surrounding theMR’s activity is changing significantly, the quality of MRs is asked to be improved. Our MRs
are divided into two groupsthose called “general MRs” and others known as “medicalscience liaison (MSRs),” aimed at supporting general MRs as specialists in certain fields.
Our “T-Shaped Marketing” system is intended to provide necessary information to medicalinstitutions based on an efficient combination of general MRs and MSRs. In view of thecurrent size of our company and the current product lineup, we believe that the current
number of MRs, given as 2,200, is appropriate.

Q/ Is there any possibility of Mitsubishi Tanabe Pharma developing and selling bio-similar ofRemicade?
A/ It is uncertain how bio-similar of Remicade will be positioned in the market after its launch.
Unlike low-molecular-weight generic products, “bio-similar” products are likely to be handledvery cautiously by medical institutions. Remicade’s efficacy and safety were establishedthrough the all-patients surveillance for all 5,000 users completed at the launch. The biggest
advantage of Remicade is its abundant data accumulated for 10 years, which differentiates
fromcompetingproducts.

Weareconsidering

thepossibilityofapproachingbio-pharmaceutical products. Bio-similar products could be one option but we haven’t yet
made any specific plan.

Q/ What will be the estimated market size and projected sales for Telavic in the future?
A/ In the drug market for chronic hepatitis C, we didn’t think from the beginning that thenumber of new patients would keep rising. Our initial projection was that sales of Telavic

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would reach their peak soon after its launch in view of the fact that there were patients who
had been waiting for the drug’s launch. We thought that after reaching its peak, Telavic’ssales would gradually decrease. The actual sales peak time of the drug was not as initially
expected, affected by safety issues and a decrease in the dosage prescribed to patients.
After the ongoing all-patients surveillance, we will establish a “safety profile” for the drug andincrease medical facilities where the treatment with Telavic is available. By doing so, we will
try to boost sales of Telavic.

Q/ When do you think the requirement will be lifted?
A/ Data need to be collected for one year monitoring period for each patient after using
Telavic for submission to the authorities. Data collection and analysis have already started
for some of the patients. The number of patients whose data are monitored will soon reachthe level where accurate evaluation is possible. If the amount of data collected reaches asufficient level, we will compile an interim report based on the data and submit it to theauthorities so that the requirement can be lifted as soon as possible.

Development pipeline
Q/ As for development pipelines, there appears to be a shortage of new products being
developed for launch in fiscal 2016 or later. Are you planning any strategy, such as
licensing-in later development-phase products?
A/ We believe that products that have been launched in the past two years will contribute toour earnings in fiscal 2016 or later. But that does not mean that we’ve become complacent
about existing pipelines. We are considering introducing new products that can be launchedon a sustainable basis. In addition, we are thinking of developing new biologics products,including new vaccine technologies and new vaccines, though none of them have yet toenter the clinical stage. These preparatory works will possibly lead to substantial pipelines in
the future.

Q/ Why are you developing MT-3995 for treatment of diabetic nephropathy?
A/ MT-3995 is a mineral corticoid receptor antagonist. It was developed at other companies
for treatment of heart failure and high blood pressure. But we judged it is best for the drug tobe developed to treat diabetic nephropathy in view of its characteristics and “unmet medicalneeds” associated with the disease. The Phase-2 trial has already begun for MT-3995.

Overseas business operations

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Q/ Can you tell us about the company’s future plans for overseas business operations?
A/ If we find potential products that are deemed commercially feasible in overseas markets,
we should employ all available means to develop and sell them in the marketsin addition
to development on our own. In the development of new drugs, our basic policy is to conduct
development in-house to the establishment of POC (Proof of Concept: confirmation that themechanism is effective and safe I humans). However, after the acquisition of POC, we
carefully consider the maximization of the drug, and our resources. In addition to in-housedevelopment and sales, we will aggressively implement joint development or out-licensing.
In such medical fields as metabolic and circulatory systems, where huge businessresources are necessary, we will not consider establishing a large-scale overseas marketing
network such as one in which 2,000 to 3,000 MRs are deployed. But we will do business on
our own for kidney and autoimmune diseases where 200 to 300 MRs is considered sufficientfor marketing. As part of our overseas operations, we think it an option acquiring anoverseas pharmaceutical company that has already had a proven track record in earnings incertain fields while developing and owning promising products.

Generic business
Q/ Little progress has apparently been made about your generic business since you’ve
terminated your business partnership with Choseido Pharmaceutical, for example. Has
there been any change in the targeted sales in the field of ¥50 billion in fiscal 2015?
A/ We thought from the beginning that attaining organic growth alone would not result inachieving the sales target for fiscal 2015. Since the environment surrounding the genericdrugs business has changed significantly, reorganization may occur any time. Under thesecircumstances, we are striving to attain the targeted sales of ¥50 billion for fiscal 2015.
Toward that goal, we are considering acquiring other company or forming strategic
partnerships with other companies.

OTC pharmaceutical business
Q/ Can you tell us about your business policy regarding OTC pharmaceutical business?
A/ Besides the earnings, OTC business provide the company with opportunities to makedirect contact with general consumers while helping enhance Mitsubishi Tanabe Pharma’s
name recognition among the society. Therefore, we will continue to do our best in thisbusiness.

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Reform of corporate culture
Q/ A series of problems associated with compliance have occurred at Mitsubishi Tanabe
Pharma since the 2007 merger. Are you making any efforts to improve the company’s
corporate culture?
A/ Five and a half years have passed since the merger. Each time a compliance-related
problem surfaced during that time, we did all company-wide efforts in order to improve ourcorporate culture. I think all employees have become united toward the goal of improving
corporate culture.

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