Message from the CEO There are signs that the global economy is recovering  gradually. Prescription drug markets around the world are  expected to grow steadily, with increasing medical needs  as a background. In recent years, the number of new  drugs gaining regulatory approval in the U.S., Europe and  Japan has also been very stable.  Yet, the fact remains that the pharmaceutical industry  still faces various challenges. Controlling the cost of health- care is a critical issue for governments worldwide, and  both developed and emerging countries are promoting  cost-saving measures such as cutting drug reimbursement  prices or promoting greater use of generics. Regulatory  authorities are introducing stricter safety criteria and dem- onstrating added value of new drugs compared to existing  therapies is more demanding than before. This requires  more activities in development and marketing for pharma- ceuticals each year. The business environment surrounding the pharmaceu- tical industry is changing faster than ever before. There is a  trend toward business restructuring on a global level as a  way of surviving fierce competition. To realize sustainable  growth amidst constant change, we need a business  model to maximize our strengths coupled with the flexibility  to respond to change. At Astellas, our stated business philosophy is to “contribute  toward improving the health of people around the world  through the provision of innovative and reliable pharma- ceutical products.” Our unchanging identity is to turn inno- vation into value and to deliver this for patients worldwide.  Our business is creating new medicines that will con- tribute to better health for people around the world, and I  believe it is highly connected to social value. We also   recognize that the healthy development of society is a  prerequisite for the sustainable growth of Astellas and the  entire pharmaceutical industry. Therefore, since its incep- tion, Astellas has practiced CSR-based management  based on a strong awareness of its social responsibilities.  This means that we aim to grow our business through  contributing to human health and be recognized as a valued  corporate citizen by society in general. We will continue to  implement CSR-based management by constantly moni- toring all of our corporate activities from a CSR perspective  and taking appropriate action where necessary. There are two aspects to Corporate Social Responsibility  (CSR) at Astellas. The first is “value protection,” which  enables the sustainable growth of society and the Company  through measures such as environmental activities and  rigorous compliance. The second aspect is “value   creation,” which is to create stakeholder value by solving  social issues and, at the same time, create enterprise value  by assimilating such a process into our business growth  and future business opportunity. At Astellas, we see our  core business of discovering new drugs as a source of  enterprise value creation that underpins CSR.  In line with this concept, we have been supporting the  United Nations (UN) Global Compact since October 2011.  We have incorporated its ten principles covering the four  fields of human rights, labor, the environment and anti- corruption into our daily business activities. Through this  endorsement of the UN Global Compact, we have  enhanced the quality of our CSR-based management. We are pursuing a Global Category Leader (GCL) business  model at Astellas to continuously generate value. Based  on our R&D capabilities, we aim to establish a competitive  edge across multiple therapeutic areas with a high level of  unmet medical needs by supplying the global market with  high-value-added products. This is the way we aim to build  Annual Report 2014 _  Astellas Pharma Inc.  11 Business Model for Continuous Value Creation Astellas’ Raison d’Être and Long-Term  Value Creation Astellas’ Business Environment * For further details, please refer to pages 63–64. Astellas’ interaction with Society Value Creation • Innovative drug discovery • Initiatives to improve access to health*, etc. Value Protection • Reduce environmental burden • Promote compliance, etc. Astellas Earn trust from  society Solve social issues  through business activities Society Enhance the  sustainability  of society Enhance the  sustainability of  Astellas