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CEO Message Flexibly Incorporate Cutting-Edge Science and Technology, Turning It into Value for Patients Yoshihiko Hatanaka Representative Director, President and CEO

Progress on Strategic Priorities in the Strategic Plan

Steady Progress on the Three Strategic Priorities Strengthening the Current Base and the Foundations for Medium- to Long-Term Growth

As the President and CEO of Astellas, my duties are to lay the groundwork for Astellas to incorporate new initiatives in the manner described above and to transform these new initiatives into the Companyfs own strengths. I also have a duty to constantly consider and decide on tradeoffs between what to incorporate as new initiatives and what to discontinue in their place. If we only incorporate new initiatives without discontinuing other operations, management will become inefficient. Astellas will always flexibly review its own operations and take decisive measures with speed, such as by reshaping its business portfolio. In fact, this commitment is embodied by one of our strategic themes, gPursuing Operational Excellence.h In the fiscal year ended March 31, 2017, we accelerated these initiatives through the transfer of our global dermatology business and 16 long-listed products manufactured and marketed in Japan.

With regard to gMaximizing the Product Value,h we saw steady growth in the oncology field driven by the prostate cancer treatment XTANDI and in the overactive bladder (OAB) franchise. In other areas, there was a steady expansion in products underpinning growth in each region. Overall, performance is progressing largely as planned.

In gCreating Innovation,h development projects in late-stage clinical development are advancing steadily, beginning with gilteritinib. In addition, we launched new products such as Repatha, a treatment for hypercholesterolemia, in Japan. Moreover, we are pushing ahead with initiatives that will contribute to patients over the medium and long terms, including advancing R&D in new therapeutic areas and treatment modalities, including muscle diseases, ophthalmology, and next-generation vaccines, along with expanding late-stage development assets through the acquisition of Ganymed Pharmaceuticals AG and Ogeda SA.

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