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Financial Strategy

Focusing on increasing enterprise value continuously, thereby improving shareholder returns

(Graphs) Left: Profit Distribution Policy / Right: Initiatives for Shareholder Returns

Put Highest Priority on Allocating Funds to Business Investments for Future Growth

Astellas will put the highest priority on allocating funds to business investments for future growth in order to achieve a sustainable increase in enterprise value. In particular, we will allocate the funds necessary to create innovation. We will continue actively pursuing alliances or M&A opportunities relating to acquiring promising new drug candidates or cutting-edge technologies that are a good fit for our business strategy.
Looking at cash-on-hand, in line with the characteristics of the pharmaceutical business, we will maintain a certain level of cash-on-hand, in addition to the working capital needed to fund day-to-day operations, in order to respond flexibly to the need to make strategic investments for future growth. Moreover, we will endeavor to maintain a healthy balance sheet at all times so that we can finance smoothly at low costs, even if funding requirements exceed Astellas’ internal funding capacity.

Targeting Stable and Continuous Increases in the Level of Dividends

Astellas will target a stable and continuous increase in dividends based on the medium- to long-term growth prospects for consolidated earnings by taking into account DOE. During Strategic Plan 2015-2017, we are targeting DOE of 6% or more.

Flexible Share Buybacks

We will implement share buybacks flexibly as needed based on an overall consideration of the business environment, investment plans, and the level of cash-on-hand, among other factors, with a view to further enhancing capital efficiency and the level of returns to shareholders.
Furthermore, our policy is to cancel acquired treasury stock, in principle, to ensure the overall balance does not exceed our target level of 1-2% of outstanding shares.

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