Investor Meeting
September, 20071

Safe Harbor Statement•Materials and information provided during this presentation may contain socalled “forward-looking statements.” These statements are based on current
expectations, forecasts and assumptions that are subject to risks anduncertainties which could cause actual outcomes and results to differ materiallyfrom these statements.

•Risks and uncertainties include general industry and market conditions, andgeneral domestic and international economic conditions such as interest rateand currency exchange fluctuations. Risks and uncertainties 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; obtaining regulatory approvals; domestic and foreign healthcarereforms; trends toward managed care and healthcare cost containment; andgovernmental laws and regulations affecting domestic and foreign operations.

•Also, for products that are approved, there are manufacturing and marketingrisks 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 eventsor otherwise.
1

Confidence for the Achievement ofDramatic Leap Plan Increasing(DLP: FY 2006-2011)
Net Sales¥1,000 Billion

R&D Expenses ¥ 200 Billion
OperatingIncome¥ 200 Billion

Net Income¥ 120 Billion

EPS¥ 420

DPR

50% (approx.)

DOE

8% (approx.)
DPR: Dividend Payout Ratio
DOE: Dividend On Equity2Consecutive Successful Years
Ensure a Brilliant Future
We forecast strong growth in the years after
FY2011. This growth will be assured byproactive R&D and strategic investments
funded by the current robust sales ofAricept® and AcipHex®/Pariet®, as well as
regional sales that exceed the Dramatic
Leap Plan in Japan, the U.S. and Asia.

3Long-term Growth of EBITRD
Double-digit growth: CAGR 12.1%(billions of yen)450
R&D Expenses

400

Operating Income

400

350
300

200

250
2001501281361005560500152

165

6978189937376838796

FY２００１

FY２００２

FY２００３

FY２００４

FY２００５214
108236124105112

FY２００６

FY２００７200

FY2011
CAGR: FY2001-20114

Contribution of Innovative
Products for Next DecadeE2007 <AMPA receptor antagonist>

NMEs
Neuroscience

Parkinson’s disease
Neuropathic pain
Epilepsy
Migraine prophylaxis
Multiple sclerosis

E7389 <Microtubule growth suppressor>

E2012 <γ-Secretase modulator> Alzheimer’s disease
reductase inhibitor>
AS-3201<Aldose
Diabetic neuropathy, Schedule being revised

Breast cancer
Non-small cell lung cancer
Prostate cancer
Sarcoma

E7820 <α2 integrin expression suppressor> Cancer
receptor tyrosine kinase inhibitor>
E7080 <VEGFCancer

Oncology

polymerization inhibitor>
E7974 <TubulinCancer
receptor a mAb>
MORAb-003 <Anti-folate
Ovarian cancer
mAb>
MORAb-009 <Anti-mesothelin
Pancreatic cancer

E5564 <Endotoxin antagonist> Severe sepsis
E5555 <Thrombin receptor antagonist>

Other unmet
medical needs

Acute coronary syndrome
Atherothrombotic disease

E3710 Acid related diseases
E3210 Irritable bowel syndrome
D2E7 <Anti-TNFα human mAb> Rheumatoid arthritis, Psoriasis, Crohn’s disease (Japan)
clevudine Hepatitis B (Asia)

Business Development
M&APrialt®, Fragmin®, Inovelon®, Eril®, Glufast®, Neurobloc® Lunesta®
Morphotek Antibody, Technologies and Pipeline
Ligand Oncology Products (ONTAK®, Targretin® capsule, Targretin® gel, Panretin® gel) and Expertise
FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012 - Further Leaping*Exact filing schedule subject to change

5Aggressive Investments forFuture Enriched Pipeline
E7389 Breast cancer
E2007 Parkinson’s disease
E5564 Severe sepsis
D2E7 Rheumatoid arthritis
clevudine Hepatitis B

Consecutive Launchingof Innovative Products

Strong Growth of Global
Aricept® and AcipHex®/Pariet®
esSalstnemtsev
nIev
itca
Pro
FY2006

FY2007

FY2008FY2009FY2010FY2011

Dramatic Leap Plan (Mid-term Plan FY2006-2011)

E2012 Alzheimer’s diseaseAS-3201 Diabetic neuropathy
E7820 Cancer
E7080 Cancer
E7974 Cancer
MORAb-003 Ovarian cancer
MORAb-009 Pancreatic cancer
E5555 Acute coronary syndrome
E3710 Acid related diseases/New PPI
E3210 Irritable bowel syndrome

FY2012FY2013

FY2014(billionsof yen)

1,000500

FY2015Further Leaping (FY2012 - )6Management Cycle to Generate Funding
for R&D and Business Development

ActiveInvestment

Promotes
New Product Launches

Pipeline Enrichment

Improves
Quality and Productivity• Profitability
Improvement• Reduction ofCost

Depreciation

Net Cash

Net Profits

Strategic Investment
Business Development
R&D Investment
7

(Billions of Yen)

100

Proactive Investments& Depreciation
Net Profits

80

Capital Expenditures

60

Dividends

Depreciation

40
20
0FY2001

FY2002

FY2003

FY2004

FY2005

FY2006(Billions of Yen)

FY2001Net Profits
Capital Expenditures
Depreciation
Dividends Paid36.5
27.2
15.3
8.5

FY200241.0
21.9
18.09.3

FY2003

50.1
28.7
18.5
10.4

FY2004

55.5
49.0
22.4
16.0

FY200563.4
37.025.025.7

FY2006

70.6
52.0
26.8
34.1

8

Funding the Future Growth
Strategy for Further Activation of Our Business(Billions of Yen)
180
160
140120100

Net Profits + Depreciation
Net ProfitsDepreciation

8060

155

Successive enrichmentof investment fund5259

CAGR 8%

8897

78

69

40200
FY2001

FY2002

FY2003

FY2004

FY2005

FY2006FY2011
CAGR: FY2001-20119Enriching Shareholder Return(DPS: Yen)

Stable and Continuous Dividend Payment
Target DOE of 8% in FY2011

450DPS

400

EPS

350

100
5040.6%

DOE
23.3%

200
150

49.4%

50.0%420

29.0%

22.7% 20.9%
172.1

123.5

193.4

221.9

247.8

263.3

30.0%

20.0%

141.2

56
3.7%
2.5% 362.6%
2.4%
32
29

50.0%

40.0%

DPR

300
250

48.4%

(DOE: %)

90
5.3%

120

130

6.4%

6.5%

8%

010.0%

0.0%
FY2001 FY2002 FY2003

FY2004

FY2005 FY2006 FY2007(est.)
DPS: Dividend Per ShareEPS: Earnings Per Share
DPR: Dividend Payout Ratio DOE: Dividend On Equity

FY2011(target)10