How Astellas Creates New The value innovation cycle is a value creation process that Astellas uses to continuously generate new value.  Through this process, Astellas will provide value for people seeking better health, in alignment with the Company’s  business philosophy. • Create competitive product  groups in multiple focus  therapeutic areas • Build a robust business  platform to generate high  profitability • Nurture excellence in the core  business activity of drug  discovery and incorporate  new technologies • Utilize the external network to  strengthen our technology  synergistically Develop and expand the administrative  infrastructur e and  accelerate the cycle Three Systems Human r esour ces  management Management contr ol CSR-based management Core competence in drug discovery Enhance product creativity Efficient use of  external resources • Networking of information and  technology Human resources and organization culture • Driving force for the cycle • Create a corporate culture that  enhances competitive capabilities Astellas Pharma Inc.  _ Annual Report 2014 4