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In addition to anticipated global sales growth for XTANDI, sales of OAB treatments Vesicare and Betanis/ Myrbetriq/BETMIGA are forecasted to grow. Although sales of Prograf are expected to decline in the Americas and Japan, Prograf sales in Asia and Oceania are expected to expand, with global sales projected to remain level with the previous fiscal year. Sales of Harnal, on the other hand, are expected to decline mainly due to the impact of generics. 

Sales in Japan are expected to decrease by 0.4% year on year to ¥528.4 billion. Sales in the Japanese market are expected to decline by 1.4% year on year to ¥508.3 billion. The impact of the NHI drug price revision enforced in April 2014 is expected to be offset by sales of growing products and new products. Consequently, we forecast that the year-on-year decrease in domestic sales of ethical pharma- ceuticals will be slight. Contributions to sales are expected from Suglat, which we launched in April 2014, and XTANDI, which we launched in May 2014. We also forecast expan- sion in sales of growing products such as Celecox and new products such as Cimzia in addition to increased sales of the OAB treatments Vesicare and Betanis. On the other hand, sales are forecasted to decline for products such as Lipitor, Gaster, Myslee and Seroquel, mainly due to the impact of generics. 

In the Americas, we forecast a 0.8% year-on-year increase in sales, to ¥289.2 billion. Sales on a U.S. dollar basis are expected to increase 1.0% year on year, to US$2,892 million. In addition to XTANDI, overall sales of the OAB treatments VESIcare and Myrbetriq and income from Tarceva are forecasted to continue growing. On the other hand, we anticipate a decrease in sales of Prograf and overall sales of the pharmacologic stress agents Adenoscan and Lexiscan, mainly due to the impact of generics. 

In EMEA, we forecast a 15.6% year-on-year increase in sales, to ¥305.6 billion. Sales on a euro basis are expected to increase 11.0% year on year, to € 2,183 million. In addi- tion to XTANDI, sales of products including the OAB treat- ments Vesicare and BETMIGA are forecasted to grow. Although we expect sales of Prograf through the Company’s own distribution channel to decrease on a local currency basis, we anticipate the revenues we receive from this to increase on a yen basis as a result of the foreign exchange impact. Sales of Harnal through the Company’s own distribution channel are forecasted to decrease. 

Sales in Asia and Oceania are expected to grow 18.6% year on year, to ¥68.7 billion. Excluding the impact of for- eign exchange rates, we forecast an approximately 18% increase. Continued growth in sales of such products as Prograf, Vesicare and MyCAMINE is expected. 

## Core Operating Profit and Core Profit for the Year 

Gross profit is expected to increase due to growing sales, as well as a decrease in the cost of sales ratio as a result of changes in product mix and other factors. 

SG&A expenses are expected to increase due to increases in selling expenses related to co-promotion of XTANDI in the U.S. and expenses related to sales of new products. 

We project a 3.4% increase in R&D expenses to ¥198.0 billion, with a ratio of R&D expenses to sales of 16.6% (compared with 16.8% in fiscal 2013). 

As a result, we forecast an 11.7% year-on-year increase in core operating profit to ¥208.0 billion. Core profit for the year is expected to increase 16.0% year on year to ¥154.0 billion. 

## Number of Employees 

As of March 31, 2014, Astellas worldwide employed 17,649 people, a year-on-year increase of 195. The total number of Medical Representatives (MRs) was approxi- mately 6,340, a year-on-year decrease of about 10. In Japan, we had 8,082 employees, down 71 from the previ- ous year-end. In the Americas, the regional head count was 2,883 employees, down 97 from the previous year- end. In EMEA, we had 4,580 employees, up 224 year on year. In Asia and Oceania, we had 2,104 employees, up 139 from the previous year-end. 

## Number of Employees by Geographical Area 

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