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 efficiency through use of external resources. 

In terms of optimizing the allocation of resources, we have implemented measures such as transferring business in a plant of the Japanese manufacturing subsidiary to an external company, and outsourcing certain administrative functions shared by the group to an external specialist company. As for pursuing operational excellence, at the start of April 2013, we created the post of Chief Medical Officer (CMO). The aims are to strengthen global functions responsible for creating scientifically based drug informa- tion and accurately gathering and supplying safety informa- tion, while also more clearly defining decision-making authority in this area. In April 2014, we made a number of functions accountable to the CMO to further ensure the complete global deployment of product compliance sys- tems and integrate them organically with our global clinical development functions. This should enable us to ensure patient safety around the world with more certainty, while also enabling faster feedback from the healthcare frontline into drug development. 

(For more details on operational excellence, please refer to page 29.) 

## Outlook for Fiscal 2014 

In our forecasts for fiscal 2014 (core basis), we are project- ing increases in both sales and profit, with sales of ¥1,192.0 billion, up 4.6% year on year and core operating profit of ¥208.0 billion, an increase of 11.7% year on year. 

Astellas has advanced to a new growth stage since fiscal 2010. However, we expect conditions surrounding the pharmaceutical industry worldwide to become increas- ingly challenging going forward. We will continue to try to  optimize our resource allocation as we target sustained growth, while ensuring that we seize opportunities pro- vided by new products such as XTANDI and mirabegron, which we expect to be the next growth drivers. 

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## Approach to Shareholder Returns 

Our basic policy on shareholder returns remains unchanged. We are working to achieve stable and sus- tained growth, taking into account dividend on equity attributable to owners of parent (DOE) and other factors in setting dividends, based on medium- to long-term earnings growth on a consolidated basis, while prioritizing business investments to assure future growth. We will also flexibly implement share buybacks to improve capital efficiency and boost the level of return to shareholders. 

Guided by this basic policy, in fiscal 2013 we paid annual dividends of ¥135 per share, up ¥5 from the previ- ous year. In fiscal 2013, we also conducted a ¥30.0 billion share buyback by acquiring approximately 5 million of our own shares before the stock split*. 

In fiscal 2014, we plan to increase the annual dividend paid by ¥2 after the stock split*, to ¥29 per share. Furthermore, we conducted a ¥30.0 billion share buyback by acquiring approximately 23 million shares* from May to June 2014. 

## To Our Stakeholders 

We believe that Astellas’ rationale as a company is to transform scientific progress—namely innovation—into value that will benefit patients, and to deliver such value to those patients. Our core mission is to provide innovative, high-value-added pharmaceuticals to help patients in their struggle for better health. Fulfilling this mission will ultimately boost Astellas’ enterprise value. 

Looking to the future, we aim to generate sustained growth as a company by working through these initiatives as a cycle. In doing so, we sincerely hope to meet the expectations of all of our stakeholders, most notably patients and their families. 

