ANNUAL REPORT 2018 2-5-1, Nihonbashi-Honcho, Chuo-Ku, Tokyo 103-8411, Japan
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For the Year Ended March 31, 2018 Astellas Pharma Inc. ANNUAL REPORT 2018 2-5-1, Nihonbashi-Honcho, Chuo-ku, Tokyo 103-8411, Japan https://www.astellas.com/en/ Please direct inquiries concerning Annual Report 2018 to: Astellas Pharma Inc. Corporate Communications TEL: +81-3-3244-3202 FAX: +81-3-5201-7473 Issued in September 2018 Contents Business Philosophy Business Philosophy/Editorial Policy 2 Raison D’être CEO Message 3 Contribute toward improving the health of people around the world Corporate Strategy and through the provision of innovative and Corporate Governance 8 reliable pharmaceutical products Astellas’ Value Creation Process 9 Mission Mid-Term Strategy 11 Sustainable enhancement of Feature: Focus Area Approach 15 enterprise value CFO Message 17 CEO Message Interview with an For details, please visit the following website: CSR-Based Management 19 Outside Director Contribution to the Sustainable Development Goals 22 Web https://www.astellas.com/jp/en/ Corporate Governance 23 about/philosophy Risk Management The CEO explains the management strategy P An outside Director talks about the effectiveness P 28 for sustainable growth. 3 of the Board of Directors and other topics. 31 Directors 29 Interview with an Outside Director 31 Editorial Policy To enable deeper stakeholder understanding of Astellas’ efforts to Business Review 34 continue to create value for sustainable growth, the Company has published this annual report as an integrated report. Executive Committee 35 In this report, we have attempted to provide disclosure while Executive Messages 36 taking note of the Guiding Principles and Content Elements of the international integrated reporting framework of the International Research and Development Integrated Reporting Council (IIRC). We have also referred to GRI Standards* published by the Global Reporting Initiative and Research and Development 39 Environmental Reporting Guidelines (Fiscal Year 2012 Version) issued by Japan’s Ministry of the Environment. R&D Topics during the Year 43 In creating the report, we have sought to make an effective tool CSR Activities in Research and Development 47 for communicating with our many stakeholders. We have therefore used charts and photographs, and endeavored to use plain language that is easy to read. Manufacturing to Sales and Procurement Mid-Term Strategy/ Executive Astellas has adopted the International Financial Reporting Overview of Main Products 49 Feature: Focus Messages Standards (IFRS), effective from fiscal 2013. Information in this report is Area Approach based on IFRS unless otherwise indicated. The monetary amounts CSR Activities from Manufacturing to Sales 53 stated in this report have been rounded off to the nearest unit, and the number of shares has been rounded down to the nearest whole Improvement in the Quality and Efficiency of Operations We introduce the strategy and policies of P11 Top management explains each strategy. P36 number. Unless otherwise noted, percentage changes and other the new mid-term strategic plan. ratios involving the previous fiscal year have been rounded off to the Recent Initiatives 55 second decimal place. Our People, Our Organization 56 * For the GRI Standards Content Index, please visit the following website: https://www.astellas.com/jp/en/investors/ir-library/annual-report Ethics and Compliance 59 Cautionary Note Access to Health 63 Scope of the Report In this annual report, statements made with respect to current plans, estimates, Period covered Social Contribution 67 strategies and beliefs and other statements that are not historical facts are Fiscal 2017 (April 1, 2017 - March 31, 2018) Environmental Preservation 69 forward-looking statements about the future performance of Astellas. These * As much as possible, we have used the latest information available at the time of statements are based on management’s current assumptions and beliefs in publication. Stakeholder Engagement 73 * The period and scope of coverage may vary depending on the subject. We have light of the information currently available to it and involve known and noted each such case individually. unknown risks and uncertainties. A number of factors could cause actual results * The figures indicated in the field of Environment represent the results for fiscal 2017 (April 1, 2017 to March 31, 2018) in Japan and the calendar year 2017 (January 1 to Financial Information and Data 74 to differ materially from those discussed in the forward-looking statements. December 31, 2017) for overseas operations as a combined total. Such factors include, but are not limited to: (i) changes in general economic Organizations covered Financial Summary conditions and in laws and regulations relating to pharmaceutical markets, (ii) 75 Astellas Pharma Inc. and its consolidated subsidiaries in Japan and overseas (referred to Financial Review 77 currency exchange rate fluctuations, (iii) delays in new product launches, (iv) in the report as “Astellas”) the inability of Astellas to market existing and new products effectively, (v) the * The Americas includes North America and Latin America, and EMEA includes Europe, Consolidated Financial Statements 86 Directors the Middle East, and Africa. inability of Astellas to continue to effectively research and develop products * In the field of Environment, this report covers all the business sites in Japan and accepted by customers in highly competitive markets, and (vi) infringements of production sites overseas that are subject to the former Environmental Action Plan, and Notes to Consolidated Financial Statements 91 it covers all the business sites that are subject to the new Environmental Action Plan. Astellas’ intellectual property rights by third parties. Information about Independent Auditor’s Report 152 Note: In the information about pharmaceutical products in this report, market size, pharmaceutical products (including products currently in development) which market share and product ranking are sourced from the following data. Investor Information 153 We introduce Directors under the new is included in this annual report is not intended to constitute an advertisement Copyright © 2018 IQVIA. P29 Calculated based on IQVIA MIDAS 2018Q1 MAT Corporate Data/Principal Subsidiaries and Affiliates 154 management system. or medical advice. Reprinted with permission 1 Astellas Pharma Inc. ANNUAL REPORT 2018 Contents Business Philosophy Business Philosophy/Editorial Policy 2 Raison D’être CEO Message 3 Contribute toward improving the health of people around the world Corporate Strategy and through the provision of innovative and Corporate Governance 8 reliable pharmaceutical products Astellas’ Value Creation Process 9 Mission Mid-Term Strategy 11 Sustainable enhancement of Feature: Focus Area Approach 15 enterprise value CFO Message 17 CEO Message Interview with an For details, please visit the following website: CSR-Based Management 19 Outside Director Contribution to the Sustainable Development Goals 22 Web https://www.astellas.com/jp/en/ Corporate Governance 23 about/philosophy Risk Management The CEO explains the management strategy P An outside Director talks about the effectiveness P 28 for sustainable growth. 3 of the Board of Directors and other topics. 31 Directors 29 Interview with an Outside Director 31 Editorial Policy To enable deeper stakeholder understanding of Astellas’ efforts to Business Review 34 continue to create value for sustainable growth, the Company has published this annual report as an integrated report. Executive Committee 35 In this report, we have attempted to provide disclosure while Executive Messages 36 taking note of the Guiding Principles and Content Elements of the international integrated reporting framework of the International Research and Development Integrated Reporting Council (IIRC). We have also referred to GRI Standards* published by the Global Reporting Initiative and Research and Development 39 Environmental Reporting Guidelines (Fiscal Year 2012 Version) issued by Japan’s Ministry of the Environment. R&D Topics during the Year 43 In creating the report, we have sought to make an effective tool CSR Activities in Research and Development 47 for communicating with our many stakeholders. We have therefore used charts and photographs, and endeavored to use plain language that is easy to read. Manufacturing to Sales and Procurement Mid-Term Strategy/ Executive Astellas has adopted the International Financial Reporting Overview of Main Products 49 Feature: Focus Messages Standards (IFRS), effective from fiscal 2013. Information in this report is Area Approach based on IFRS unless otherwise indicated. The monetary amounts CSR Activities from Manufacturing to Sales 53 stated in this report have been rounded off to the nearest unit, and the number of shares has been rounded down to the nearest whole Improvement in the Quality and Efficiency of Operations We introduce the strategy and policies of P11 Top management explains each strategy. P36 number. Unless otherwise noted, percentage changes and other the new mid-term strategic plan. ratios involving the previous fiscal year have been rounded off to the Recent Initiatives 55 second decimal place. Our People, Our Organization 56 * For the GRI Standards Content Index, please visit the following website: https://www.astellas.com/jp/en/investors/ir-library/annual-report Ethics and Compliance 59 Cautionary Note Access to Health 63 Scope of the Report In this annual report, statements made with respect to current plans, estimates, Period covered Social