Selling, General and Administrative (SG&A)  Expenses, Research and Development (R&D)  Expenses, Amortisation of Intangible Assets Core Operating Profit Core Profit for the Year SG&A expenses increased 24.5% to ¥397.0 billion, which  in addition to the foreign exchange rate impact, was partly  due to increased expenditures related to the oncology  business in the U.S. and EMEA, including payment for  co-promotion of XTANDI in the U.S. R&D expenses rose by 20.3% to ¥191.5 billion, which in  addition to the foreign exchange rate impact, was partly  due to increased development expenses related to a stra- tegic alliance with Amgen Inc. The ratio of R&D expenses  to sales rose 0.6 of a percentage point to 16.8%. Amortisation of intangible assets was ¥36.0 billion, up  27.4% year on year, which in addition to the foreign  exchange rate impact, was partly due to an increase  resulting from launches of new products. As a result of the above-mentioned factors, core operating  profit increased 10.9%, to ¥186.3 billion. The ratio of gross  profit to sales increased, while the ratio of R&D expenses  to sales and the ratio of SG&A expenses to sales also  increased. Consequently, the operating margin declined  0.8 of a percentage point to 16.3%. Finance income on a core basis decreased ¥0.3 billion to  ¥1.6 billion. Finance expense on the same basis was ¥0.4  billion, mostly unchanged from the previous fiscal year.  Consequently, core profit before tax rose ¥17.9 billion, or  10.6%, to ¥187.5 billion. Income tax expense increased by ¥3.9 billion, or 7.8%,  to ¥54.7 billion. The income tax burden rate fell 0.8 of a  percentage point to 29.2% compared to the previous  fiscal year. As a result, core profit for the year increased by ¥14.0  billion, or 11.8%, to ¥132.8 billion. Financial Section Annual Report 2014 _  Astellas Pharma Inc.  93 (¥ billion) 2013.3 2014.3 SG&A expenses ¥318.9 ¥397.0 SG&A ratio (%) 32.5 34.8 Advertising and sales promotional expenses 87.3 112.1 Personnel expenses 140.0 167.8 Other 91.6 117.0 R&D expenses 159.1 191.5 R&D ratio (%) 16.2 16.8 Amortisation of intangible assets 28.3 36.0 (¥ billion) 2013.3 2014.3 Profit before tax ¥169.5 ¥187.5 Income tax expense 50.7 54.7 Profit for the year 118.8 132.8 Ratio of profit for the year to sales (%) 12.1 11.6 (¥ billion) 2013.3 2014.3 Sales ¥981.9 ¥1,139.9 Operating profit 168.0 186.3 Operating margin (%) 17.1 16.3