Mid-Term Management Plan Targets for Fiscal 2014* 1 Fiscal 2014 Forecasts* 2 Net sales (¥ billion)  1,096.0  1,215.6 Operating income  (¥ billion)  226.0 197.0 (R&D ratio) (Around 16% or higher) (Mid-18% level) ROE  15% or higher Due to lower income level  forecast to fall below target DOE 6% or more Assumed foreign exchange rates  US$1 = ¥80 € 1 = ¥110  US$1 = ¥100 € 1 = ¥140 *1 Announced in November 2010 *2 The Company does not disclose forecasts for fiscal 2014 under J-GAAP. Figures represent forecasts on an IFRS core basis calculated under J-GAAP. Review of the 2014 Mid-Term Management plan (numerical Aspects) J-GAAp upfront investments in the oncology business. Compared with the start point of fiscal 2010, we have  been able to steer the Company towards growth during the  period covered so far by the 2014 Mid-Term Management  Plan. I am confident that our application of growth and  efficiency strategies has produced significant results. 2013 driven by the growth of XTANDI. In May 2013, we entered into a strategic alliance in Japan  with Amgen Inc. to expand our product pipeline. Under  this alliance, we will co-develop and co-commercialize five  of Amgen’s pipeline medicines. (For more details on maximizing the value of new products,  please refer to pages 24–25.) Effective the fiscal 2013, we have adopted International  Financial Reporting Standards (IFRS) to help improve the  international comparability of our financial information. This  move reflects our current global business development  and shareholder composition. In line with the change to IFRS, we disclose financial  results on a core basis as an indicator of our recurring  profitability. In fiscal 2013, we reported steady overall growth in  results, with increases in sales, core operating profit and  core profit for the year.  As our business continues to develop steadily, to realize  sustainable growth while responding flexibly to a rapidly  changing business environment, we are focusing on three  strategic initiatives: maximize value of new products,  enhance innovation and pursue operational excellence. In May 2013, to enhance our ability to generate innovative  drugs, we decided to reshape our research framework and  introduce a new system for R&D. Along with strengthening  of our own research capability, the aim of these moves is  to achieve more flexibility in our research system and  related resource allocation so that we can benefit from  incorporating external innovation and making forays into  new disease areas and try new technologies. Specifically, our R&D reforms are centered on four  themes: integrating and reinforcing our drug discovery  research functions, expanding our use of external cutting- edge science; targeting new therapeutic areas and  drug discovery platform technologies; and accelerating  drug discovery. The establishment of Astellas Innovation Management  (AIM) in October 2013 was a related move to enable more  systematic and wide-ranging capture of opportunities to  develop innovative drugs from external bio-ventures and  academia. This initiative has already generated some  achievements. (For more details on enhancing innovation, please refer to  pages 26–28.) In the therapeutic area of urology, on top of our mainstay  product Vesicare, we have now launched mirabegron  which has a different mechanism of action, in many countries.  Due to steady growth of both products, our overactive  bladder (OAB) treatment sales increased by 40% year on  year in fiscal 2013, and we reinforced our position as No. 1  in this market. In oncology, we launched XTANDI in Europe in July  2013, following its launch in the U.S. In Japan, we  received approval in March 2014, and launched it in May  2014. Our oncology sales rose 87% year on year in fiscal  To support our continued investment in high-value-added  areas, we are targeting optimized allocation of resources  and pursuing operational excellence by building an optimal  manufacturing framework and boosting operational  Astellas Pharma Inc.  _ Annual Report 2014 14 pursue Operational Excellence Maximize the value of new products Enhance innovation  Fiscal 2013 Performance