Chapter 2 Snapshot fiNaNCial aNd NON-fiNaNCial hiGhliGhTS * Astellas has adopted the International Financial Reporting Standards (“IFRS"), effective from fiscal 2013.  However, results for fiscal 2013 have been reported in accordance with both J-GAAP and IFRS. *1 US dollars have been converted at the rate of ¥103 to US$1, the approximate exchange rate on March 31, 2014. *2 Core basis *3 R&D expenses are included under J-GAAP but excluded under IFRS. *4 The Company conducted a stock split of common stock at a ratio of 5 for 1 with an effective date of April 1, 2014. Net income/profit for the year per share and total  net assets/total equity per share are calculated based on the number of shares issued after the stock split (excluding treasury shares) on the assumption that the  stock split was conducted at the beginning of fiscal 2012. Moreover, the number of shares outstanding has also been calculated on the assumption that the stock  split was conducted at the beginning of fiscal 2012. net Sales* 2 /Operating income* 2 R&D Expenses* 2 /R&D Ratio* 2 net income* 2 /ROE 16 Astellas Pharma Inc.  _ Annual Report 2014 (¥ billion) (US$ million)* 1 2010.3 2011.3 2012.3 2013.3 2014.3 2014.3 J-GAAP J-GAAP J-GAAP J-GAAP J-GAAp iFRS iFRS For the year Net sales ¥ 974.9 ¥ 953.9 ¥ 969.4 ¥1,005.6 ¥1,164.5 ¥1,139.9 * 2 $11,067 * 2 Cost of sales 289.2 296.0 318.6 324.1 345.6 330.6 * 2 3,210 * 2 SG&A expenses* 3 499.2 538.8 519.2 527.6 641.6 397.0 * 2 3,855 * 2 R&D expenses 195.6 217.3 189.8 182.0 214.6 191.5 * 2 1,859 * 2 R&D ratio (%) 20.1 22.8 19.6 18.1 18.4 16.8 * 2 — Operating income 186.4 119.2 131.5 153.9 177.3 186.3 * 2 1,808 * 2 Operating margin (%) 19.1 12.5 13.6 15.3 15.2 16.3 * 2 — Net income/Profit for the year 122.3 67.7 78.2 82.9 92.4 132.8 * 2 1,289 * 2 At year-end Total assets 1,364.2 1,335.1 1,400.6 1,445.6 1,551.8 1,653.1 16,050 Total net assets/Total equity 1,053.9 1,021.1 1,018.1 1,062.0 1,140.1 1,268.5 12,315 (¥) (US$)* 1 per share data Net income* 4 /Profit for the year* 4 ¥ 261.84 ¥ 146.49 ¥ 169.38 ¥ 36.08 ¥ 41.15 ¥ 59.11 * 2 $ 0.57 * 2 Total net assets* 4 /Total equity* 4 2,278.77 2,207.70 2,200.64 469.92 510.03 568.53 5.52 Cash dividends 125.00 125.00 125.00 130.00 135.00 135.00 1.31 Major indicators ROE (%) 11.7 6.5 7.7 8.0 8.4 7.4 — DOE (%) 5.6 5.6 5.7 5.7 5.5 5.0 — Equity ratio (%) 77.1 76.4 72.6 73.3 73.3 76.7 — Free cash flows (¥ billion, US$ million) 118.6 (142.0) 146.7 95.5 187.1 187.4 1,819 Average exchange rate (¥/US$) 93 86 79 83 100 100 — (¥/ € ) 131 113 109 107 134 134 — (¥ billion)  (¥ billion)  Net sales (Left)   Operating income (Right) 0 300 600 900 1,200 0 60 120 180 240 974.9 953.9 969.4 1,005.6 1,164.5 1,139.9 18 6 .4 11 9 .2 13 1 .5 15 3 .9 17 7 .3 18 6 .3 J-GAAP IFRS 2010.3 2011.3 2012.3 2013.3 2014.3 (¥ billion)  (%)  R&D expenses (Left)   R&D ratio (Right) 0 250 0 50 200 40 150 30 100 20 50 10 195.6 217.3 189.8 182.0 214.6 191.5 20.1 22.8 19.6 18.1 18.4 16.8 2010.3 2011.3 2012.3 2013.3 2014.3 J-GAAP IFRS (¥ billion)  (%)  Net income (Left)   ROE (Right) 0 150 0 30 100 20 50 10 122.3 67.7 78.2 82.9 92.4 132.8 11.7 6.5 7.7 8.0 8.4 7.4 2010.3 2011.3 2012.3 2013.3 2014.3 J-GAAP IFRS