Management Plan

Since late 90's, Takeda has been achieving the management tasks such as the growth of four international strategic products^[*1], expansion of overseas operations by reinforcing infrastructures, and restructuring of non-pharmaceutical businesses.
Through the completion of the tasks set forth in the 2001-2005 Medium-Term Management Plan, Takeda has been challenging to become a world-class pharmaceutical company, promoting its focus on the pharmaceutical business in order to realize the Management Mission of "striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products"

[*1]:Leuprorelin, Lansoprazole, Candesartan and Pioglitazone

For that purpose, the next five years are being positioned as a crucial period to ensure in-house R&D capability for continued creation of new products and to further increase our presence in overseas markets, even in the midst of a competitive global environment.

Focusing on Takeda-ism, which represents the corporate philosophy referring to "Integrity = fairness, honesty, perseverance " as the basis of all the business activities, Takeda is aiming to realize sustainable growth and increased corporate value globally by achieving the targets set in this Medium-Term Management Plan, with comprehensive improvement of strengths such as "establishment and in-depth implementation of strategies from a long-term perspective" and "high productivity and efficiency."

In "2006-2010 Medium-Term Management Plan," Takeda will dedicate collective efforts to the management tasks mentioned below.

2006-2010 Medium-Term Management Plan
- Growth toward a World-class Pharmaceutical Company with Japanese Origin -

Operational targets in Fiscal 2010

• • Enhancement of R&D pipeline, toward sales of in-house ethical products of 2 trillion yen^[*2] in fiscal 2015
• • Sales of in-house ethical products1.4 trillion yen^[*2]
• • Market share2.5% (weighted average of countries where Takeda has its own sales channels)
• • R&D expensesinvestment up to 20% of the sales of in-house ethical products
• • Earnings per share (EPS)more than 7% increase per year on average (excluding extraordinary gain and loss)
• • Return on equity (ROE)maintenance of the current level

[*2]:including sales of unconsolidated affiliates/subsidiaries

Management Tasks

1. Enhancement of capability to create new drugs through in-house R&D activities

By thorough review of the R&D management scheme and investments focused on the global research infrastructure, Takeda will build a structure that will enable it to continue launching new products from its in-house R&D from fiscal 2011. At the same time, Takeda will invest in in-licensing and alliance activities as supportive measures for in-house research. The goal is to enhance the R&D pipeline to a level where the company can expect sales of in-house ethical products of 2 trillion yen in fiscal 2015.

2. Formulation of a tri-polar marketing function (Japan, USA, Europe)

Takeda will solidify its marketing structure in three regions (Japan, USA, Europe), and will conduct self-sustaining and appropriate operations for respective markets. Each regional marketing function will coordinate closely and directly with the headquarters in Japan. The target market share in fiscal 2010 in each region is as follows:

Maintaining the market leader position with 7% market share with Takeda's own products.

More than 1.5% market share by wholly owned subsidiary, Takeda Pharmaceuticals North America, Inc.

More than 1.1% weighted average market share in six countries where Takeda has its own sales channels. (France, UK, Italy, Germany, Austria, Switzerland)

More than 1.4% weighted average market share in five countries where Takeda has its own sales channels. (P. R. of China, Taiwan, Philippines, Thailand, Indonesia)

Takeda will continue further solidifying the marketing structure in view of a market share of more than 3% in the U.S. and Europe as the next target after fiscal 2010, as a global corporate.

3. Establishment of an efficient global management scheme for corporate headquarters' functions

Takeda will conduct business operations with increased efficiency and consistency on a group-wide level. Maintaining the principles of "self-responsibility" and "self-independency,"the headquarters will control the relevant functions of each group company sharing common operational policies. Takeda will also continue enhancing the "MPDRAP function"^[*3] by clarifying the scope of responsibility, which will lead to thorough implementation of pr