Santen CEO Small Meeting Santen Pharmaceutical Co., Ltd. December 3, 2020 Copyright© 2020 Santen All rights reserved. 0 People with Eye Problems will Increase Further Population growth Visually impaired or blind Aging world Lifestyle change 2.2bn Environmental change Source： WHO World report on vision Copyright© 2020 Santen All rights reserved. 1 Ophthalmic Disease Landscape Stage 1 Stage 2 Stage 3 Stage 4 Africa China/Southeast Asia Japan/Western ③Wellness Myopia/ Ptosis ②Treatment of diseases and conditions that do NOT lead to vision loss Dry eye ①Treatment of diseases and conditions Trachoma/ that can cause vision loss Cataract/ Infections AMD Glaucoma Copyright© 2020 Santen All rights reserved. 2 Ophthalmic Disease and Drugs Market Retinitis Glaucoma Myopia （aged 5～19） Pigmentosa China：20mil. China：120mil. Worldwide：1.9mil.*3 Number of Japan：5mil. Asia：54mil. Japan：18.7/100K.*4 Patients*1 Market size （by value*2) Atropine formulation is No fundamental treatment or Drugs commercialized in some effective drugs to control the Market countries. disease progression x12 DE-127 jCell +α （Licensed from jCyte） China Japan Regional and Business Growth Led by Ecosystem Development and New Modality *1: 2020/Decision Resources, LLC. All right reserved. Reproduction, distribution, transmission or publication is prohibited. Reprinted with permission. *2: Copyright © 2020 IQVIA. IQVIA MIDAS 2019.1Q-4Q; Santen analysis based on IQVIA data. Reprinted with permission. *3 Hamel C. Retinitis pigmentosa. Orphanet J Rare Dis. 2006;1:40. *4: Japanese Ophthalmological Society Copyright© 2020 Santen All rights reserved. 3 Santen Business Model Sustainable growth enabled by our specialized knowledge with external expertise and technology (1) Ophthalmology (2) Wellness (3) Inclusion Competitiveness as a specialized company Copyright© 2020 Santen All rights reserved. 4 Expanding Solutions in Ophthalmology Expansion of portfolio through active partnerships Digital Device Small Molecules New Modality Check-up Support ophthalmologists’ Glaucoma Diagnosis Digital training treatment support Follow-up device Gene therapy Device Enhancement Expansion of Treatment pharmaceutical (Reimbursement) commercialization of core business business Glaucoma device ROCK inhibitor Cell therapy IOL Treatment Approach to Myopia progression (Out of Pocket) myopia Ptosis reduction for children Wellness Reprinted from JPM conference material in January 2021. Copyright© 2020 Santen All rights reserved. 5 Growth Scenario Image over Mid-to-Long Term by Regions EMEA US ・Steady growth enhanced by glaucoma ・Ready to enter into the market through and new products business the launch of DE-128 and the acquisition ・Functioning as a global hub of Eyevance ・Aim to swiftly turn profitable through inorganic growth including products from As is To be outside partners As is To be Japan ・Minimize the impact from patent expiration by adding new products and maintain our presence As is To be China Asia ・Possible impact in a short-term, but ・Developed countries or regions: Maintain continuous growth will be expected steady growth by new product launch based on the population growth and ・Developing countries or regions : Further ecosystem development expand by establishing ecosystem ・Enhance products portfolio As is To be As is To be Copyright© 2020 Santen All rights reserved. 6 Appendix Copyright© 2020 Santen All rights reserved. 7 VBP*1 Impact on Cravit in China • Cravit was listed for VBP*1 • Short-term impact on sales revenues and profits Market structure of Levofloxacin0.5%（volume）*2 Private Hospital, Public Hospitals Pharmacies, and Market Other Market （approx. 60%） （approx. 40%） Market not Market affected by VBP affected by VBP *1: Value-Based Purchasing: Government assurances on purchase volume for the successful bidders. 80% 20% *2: Estimated by Santen Copyright© 2020 Santen All rights reserved. 8 Copyright© 2020 Santen All rights reserved. 9.