areas of urology and transplantation, where we are already established, while also working to establish oncology as a third field as quickly as possible. 

In the urology therapeutic area, we are further reinforc- ing our leading position by steadily expanding sales of our OAB treatments Vesicare and mirabegron (generic name). In the therapeutic area of oncology, which we are working to develop as a third GCL field, we are making steady progress in building our presence through the launch of XTANDI in the U.S., Europe and Japan. In the therapeutic area of transplantation, we are maintaining global leader- ship in the category despite the loss of patent protection for Prograf, whose sales we are working to preserve. 

## Regional Strategy 

Astellas has its own global sales network covering more than 50 countries around the world. We are seeing steady growth in new global products such as mirabegron and XTANDI, in addition to global products such as Vesicare. We also draw strength from the fact that our growth is underpinned by distinctive products in each region. 

Efforts are also being made to strengthen our sales platform in emerging markets that are expected to grow in the years to come. We have achieved high growth primarily in China and Russia. We are pressing ahead with well- balanced business expansion initiatives in the global market spanning the four regions of Japan, the Americas, Europe, Middle East and Africa (EMEA) and Asia & Oceania. 

Faced with the continuing globalization of business, we believe that it is imperative to identify the common thread running through issues faced by each regional community and Astellas’ business activities, specifically when con- ducting business in emerging countries, and incorporate those considerations into our medium- to long-term corpo- rate strategies. We are confident that moving forward with these perspectives in mind will support value creation at Astellas over the long term. 

## Review of the 2014 Mid-Term Management plan (Main initiatives) 

## Therapeutic Area Strategy 

- Strengthen OAB franchise 

- Establish business in the oncology field 

- Develop future fields 

## R&D Innovation Strategy 

- Reshape the research framework and introduce a new system 

- Take steps for R&D in new therapeutic areas and novel platform technologies 

- Promote project prioritization and Multi-Track R&D 

## R&D innovation Strategy 

Under the R&D innovation strategy, we are pursuing a “Precision Medicine” approach aimed at enhancing thera- peutic effectiveness by more precisely identifying the target groups of patients. We are also promoting a “Multi-Track R&D” approach based on effective utilization of external resources. Moreover, to strengthen our drug discovery capabilities, we decided to reshape our research frame- work and introduce a new system. In these ways, we are now seeing steady progress in innovation. 

## cSR Activities 

Social, environmental and employee-related CSR activities are part of the 2014 Mid-Term Management Plan. We are achieving solid results across a range of activities. Among them are promoting CSR-based procurement initiatives, measures to achieve greenhouse gas emissions reduction targets, promoting human resources development and diversity and implementing measures focused on research into drugs for the treatment of neglected tropical diseases (NTDs). In particular, combatting NTDs is an issue addressed in global health, where Astellas can leverage its expertise and strengths. We have established collaborative research programs with various external research and educational institutions to help tackle these social issues. At the same time, we think our efforts in this area will develop synergies with our business activities in the long run. 

## progress on Mid-Term Management plan Targets 

Our sales progressed fairly well against our plan target. However, we do not expect to achieve the target for operating income in fiscal 2014. This is attributable to three main factors. First, the growth of generic drugs has been greater than we predicted. Second, R&D expenses have increased above the initially anticipated level, mainly due to the increase in the expenses for late-stage clinical trials. Third, our sales expenses have increased due to 

## Regional Strategy 

- Continuously launch new products in each region 

- Form strategic alliance with Amgen, Inc. in Japan 

- Strengthen sales platform in emerging countries 

## Efficiency Strategy 

- Strengthen global management system 

- Optimize production framework 

- Outsource group-wide shared operations 

- Consolidate domestic business sites, dispose of assets, etc. 

