ManageMent’s Discussion anD analysis Information in this section is based on International Financial Reporting Standards (IFRS) unless otherwise indicated. However, in the information about sales by  product on pages 88–93, sales of each product and year-on-year changes are based on J-GAAP. In this section, the Americas and EMEA are used as follows: the Americas refers to North, Central and South America; EMEA includes Europe along with the  Middle East and Africa. In the year under review, the pharmaceutical industry con- tinued to face a challenging operating environment. This  was due to a number of factors, including stricter regula- tory processes for approval of new drugs, and increased  moves to curb medical expenditures in developed nations  as well as emerging countries. Against this backdrop,  Astellas actively pursued growth in all aspects of its busi- ness, from research and development through to manufac- turing and sales. We continued our strategy of developing  high-value-added innovative drugs in fields with unmet  medical needs for worldwide supply. Astellas is actively developing its business in Japan and in  the global markets of the Americas, EMEA, Asia & Oceania  and elsewhere. The Company also has a high level of over- seas ownership, with more than 50% of its shares held by  foreign shareholders. Given its global operations, share- holder composition and other such factors, Astellas has  adopted the International Financial Reporting Standards  (“IFRS”), effective from fiscal 2013, as a means of  enabling capital market participants to more readily com- pare the financial information on an international basis. In line with the Company’s change to IFRS, the Company  discloses financial results on a core basis as an indicator of  its recurring profitability. Certain items reported in financial  results under IFRS on a full basis that are deemed to be  non-recurring items by the Company are excluded as non- core items from these financial results on a core basis.  These adjusted items include impairment losses, gain (loss)  on sales of non-current assets, restructuring costs, loss on  disaster, a large amount of losses on compensation or  settlement of litigation and other legal disputes, and other  items that the Company judges should be excluded. In fiscal 2013, consolidated sales increased 16.1% year on  year to ¥1,139.9 billion. New products contributed to increased sales, including  XTANDI for the treatment of prostate cancer, and Betanis/ Myrbetriq/BETMIGA for the treatment of overactive bladder  (OAB). In addition, sales of Vesicare for the treatment of  OAB, and other products continued to increase. Sales of  Prograf, an immunosuppressant, and Harnal for the treat- ment of functional symptoms of benign prostatic hyperplasia,  increased partly due to the foreign exchange rate impact. Consolidated Performance Overview Foreign Exchange Rates (Average) Fluctuation in Foreign Exchange Rates from April to March Adoption of International Financial Reporting  Standards Consolidated Financial Results (Core Basis) Overview of Year Ended March 31, 2014  (Fiscal 2013) Consolidated operating results (core basis) for fiscal 2013  are shown in the table below. Sales, core operating profit  and core profit for the year increased. The exchange rates for the yen in fiscal 2013 are shown in  the table below. Movements in the rates led to a ¥113.0  billion increase in the value of sales and a ¥24.2 billion  increase in core operating profit. Foreign Exchange Impact for Fiscal 2013 (¥ million) 2013.3 2014.3 Sales ¥981,899 ¥1,139,909 Core operating profit 168,022 186,253 Core profit for the year 118,792 132,796 (¥) 2013.3 2014.3 US$1 ¥83 ¥100 € 1 107 134 (¥) 2013.3 2014.3 US$1 ¥12 (Weakening of yen) ¥ 9 (Weakening of yen) € 1 ¥11 (Weakening of yen) ¥21 (Weakening of yen) Sales Astellas Pharma Inc.  _ Annual Report 2014 86