Sales Organization (CSO) in Malaysia. Astellas Pharma  Singapore will quickly build up its business capabilities in  both Singapore and Malaysia. and entered into a transfer agreement with Taiho. We made  a decision to cease in-house fermentation research as part  of the reshaping of our research framework in order to  enhance our ability to generate innovative drugs (as  announced in May 2013), and considered a transfer of our  fermentation research-related assets to a third party. With  this decision, we will implement a strategic reallocation of  resources related to research and development that were  previously allocated to fermentation research to further  enhance our ability to generate innovative drugs. To realize sustainable growth while responding to a rapidly  changing business environment, the Company is continu- ously working to pursue operational excellence and  enhance asset efficiency. The Company’s consolidated business forecasts for fiscal  2014 are presented on a core basis. 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 business forecasts on a core basis. In September 2013, we signed an agreement with  Accenture Japan Ltd. on Business Process Outsourcing in  regard to certain Group-wide operations spanning multiple  business areas of the Company and its domestic subsidiar- ies. By working with a specialist external partner, we aim to  obtain high quality services and promote efficiency in these  operations, while allocating resources to businesses that  contribute to the Company’s competitive advantage. In December 2013, we entered into an agreement with  Mitsui Fudosan Co., Ltd. to comprehensively transfer the  real estate owned by the Company and domestic group  company Lotus Estate Co., Ltd. to Mitsui Fudosan. The  transfer was carried out on March 31, 2014. In May 2014, we consolidated functions including  Clinical Development, QA (Quality Assurance) & RA  (Regulatory Affairs) and Pharmacovigilance, and relocated  them from Itabashi-ku, Tokyo to an office building close to  Astellas’ headquarters in Nihonbashi, Chuo-ku, Tokyo. In the areas of production and technology, the Company  will work to enhance its own capabilities while also actively  pursuing alliances with external partners. By these means,  we will work to establish a stable production system that  will efficiently realize a “steady supply of high-quality drugs”  in a changing environment. As part of these efforts, Astellas  Pharma Tech Co., Ltd., the Company’s production subsid- iary, concluded a definitive agreement in December 2013  with Nichi-Iko Pharmaceutical Co., Ltd. under which   Nichi-Iko Pharmaceutical Co., Ltd. would succeed to the  Fuji Plant business of Astellas Pharma Tech Co., Ltd. The  succession of this business took place and was completed  on April 1, 2014. In December 2013, we reached agreement with Taiho  Pharmaceutical Co., Ltd. (“Taiho”) to transfer assets related  to fermentation research owned by the Company to Taiho,  In fiscal 2014, we forecast a 4.6% year-on-year increase in  sales to ¥1,192.0 billion. We project an increase in sales and higher earnings at  every level. We assume the yen will weaken against the  euro compared with fiscal 2013, and we expect foreign  exchange factors to have an ¥11.8 billion positive impact on  sales and a ¥13.2 billion positive impact on core operating  profit. Sales Consolidated Forecasts for Year Ending  March 31, 2015 (Fiscal 2014) (Announced May 2014) Initiatives to Pursue Operational Excellence and  Enhance Asset Efficiency Fiscal 2014 Forecasts (Core Basis) Astellas Pharma Inc.  _ Annual Report 2014 98 (¥ million) 2014.3 2015.3  (forecasts) Sales ¥1,139,909 ¥1,192,000 Core operating profit 186,253 208,000 Core profit for the year 132,796 154,000 (¥) 2014.3 2015.3  (forecasts) Foreign Exchange Rates (Average) US$1 ¥100 ¥100 € 1 134 140