Company Profile 2019-2020

With the corporate philosophy of “Otsuka-people creating new products for better health worldwide,” at Otsuka Pharmaceutical we are expanding our two core complementarybusinesses — our pharmaceutical business, which ranges from the diagnosis to the treatment of diseases, and our nutraceutical business, which supports the day-to-day maintenance and improvement of good health. Since our founding, we have embraced creativity and have never been bound by preconceived ideas, pursuing things that only Otsuka can do, and things that we can do because we are Otsuka.

In the pharmaceutical business, we invest heavily on research and development, with the most significant investments in the central nervous system, kidney and cardiovascular diseases, and cancer. For example, the antipsychotic drugs ABILIFY and REXULTI possess unique mechanisms and are used by patients around the world. Our recent contributions to the evolution of medicine include the launch of the world's first digital drug that records ingestion of the tablet, as well as bringing to market a new drug for a previously untreatable kidney disease. In 2018, Visterra Inc. joined the Otsuka group of companies, supporting our ongoing commitment to the discovery and development of novel treatments.

In the nutraceutical business, utilizing the know-how cultivated through our pharmaceutical business that earlier resulted in products such as POCARI SWEAT and Calorie Mate, we have continued to establish entirely new markets that benefit health. Product categories that we are currently working on in response to evolving societal needs include themes such as extending healthy life expectancy, and women’s health. Daiya Foods Inc., a North American plant-based food business, is a new addition to our group that has taken our global development in this area to a new level.

As dramatic changes occur across society, people's desire to be healthy remains consistent. It is our ambition to be a big venture company that becomes indispensable to people’s health worldwide, while upholding our core values.

Our aim as a total healthcare company is to become anindispensable contributor to people’s health worldwide.

Tatsuo HiguchiPresident and Representative DirectorOtsuka Pharmaceutical Co., Ltd.

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UTRACEUTICALSHARMACEUTICALS

Ever since the founding of our research institute in 1971,the motto of our drug discovery program has been to createworld-class products by taking the road less travelled.We seek to address unmet medical needs, deploying our unique approach to research and development. We work to develop breakthrough products, focusing on the central nervous system, cardiovascular and renal areas, oncology, infectious diseases, ophthalmology and dermatology, not only in Japan, but also in collaboration with research centers in Europe, the U.S., and China.

Pharmaceutical business

The term “nutraceuticals” comes from the combining of the words nutrition and pharmaceuticals. At Otsuka, we use the know-how gained through our medical research to develop unique, science-based products to maintain and improve human health. We forge new markets by yet-to-be-imagined needs that consumers themselves are as yet unaware of and patiently educating the public about the value of our products.

Nutraceutical business

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Two core businesses | Introduction

Whole-body healthsupported bytwo businesses

As a holistic healthcare company that contributes to

people’s health worldwide, at Otsuka we are expanding

our two core businesses—our pharmaceutical business

and our nutraceutical business — with the aim to

provide solutions that range from the treatment of

diseases to the maintenance and improvement of

everyday health.

HARMACEUTICALS

Endnotes that specify collaboration counterparts in Japan *1 Co-promotion with UCB Japan Co., Ltd. *2 Co-promotion with Takeda Pharmaceutical Company Limited *3 Co-promotion with Senju Pharmaceutical Co., Ltd.*4 Co-marketing with FUJIFILM Toyama Chemical Co., Ltd. *5 Co-marketing with Denka Seiken Co., Ltd. *6 Co-marketing with Eiken Chemical Co., Ltd.

Central Nervous System Oncologic Cardiovascular and RenalAntipsychotic

REXULTI Antipsychotic

ABILIFY prolonged-release aqueoussuspension for intramuscularinjection /ABILIFY MAINTENA* *Product name outside Japan

Antipsychotic

ABILIFY Antiepileptic

E Keppra*1

Dopaminergic antiparkinsonian agentRestless legs syndrome agent

Neupro Patch A therapeutic drug treatment to reduce alcoholconsumption

SelincroPseudobulbar Affect (PBA) agent

NUEDEXTA(Sold in the U.S.)

Anticancer agent(tyrosine kinase inhibitor)

ICLUSIG Conditioning drug for hematopoieticstem cell transplantation

Busulfex

V2-receptor antagonistAquaretic and ADPKD treatment drug

Samsca/JINARC*/JYNARQUE**

*Brand name for ADPKD treatment in multiple regions outside Japan**Brand name for ADPKD treatment in U.S.

V2-receptor antagonist

Physuline Antiplatelet agent

Pletaal Long-acting,beta-blocker drug for antihypertension

Mikelan LA Beta-blocker

Mikelan Antihyperlipidemic agent

Lorelco Antihyperlipidemic agent, climacteric disturbance,and irritable bowel syndrome

Hi-z

Anti-gastritis and anti-gastric ulcer agent

Mucosta Potassium-competitive acid blocker-proton pump inhibitor-

Takecab*2

Triple-drug blister pack for H. pylorieradication therapy

VONOSAP pack*2 VONOPION pack*2

Oral nutrient for liver failure

Aminoleban EN Levocarnitine-replenishing drug

L-Cartin FF

Respiratory and Infectious Diseases

Ophthalmologic Diagnostics, Medical Equipment, Other

Dermatologic

Bronchodilator

Meptin Bronchodilator

UNIPHYL LA Antituberculosis drug

DELTYBA

Therpeutic agent for dry eye(mucin production stimulating agent)

Mucostaophthalmic suspension Antiglaucoma and intraocularantihypertensive drug

Mikeluna combinationophthalmic solution*3

Antiglaucoma and intraocularantihypertensive drug

Mikelan LAophthalmic solution*3 Antiglaucoma and intraocularantihypertensive drug

Mikelanophthalmic solution*3 Broad-spectrum antibacterialophthalmic solution

OZEXophthalmic solution*4

[Digestive]13C-Urea breath agent fordiagnosis of H. pylori infection

UBIT tablet Rapid test forthe detection of H. pylori antibody in urine

RAPIRUN H. pyloriAntibody STICK Test kit forthe measurement of H. pylori antibody in urine

URINELISA H. pylori Antibody Rapid urease test for the detection of H. pylori

HELICOCHECK[Oncology]

Test kit for the measurement of WT1 mRNA

WT1 mRNA Assay Kit II “OTSUKA” Test kit for the measurement of major BCR-ABL mRNA

Major BCR-ABL mRNA Assay Kit ”OTSUKA”RIA kit for sialyl Lex-i antigen in serum

SLX “OTSUKA”RIA kit for sialyl-Tn antigen in serum

STN “Otsuka” RIA Kit

[Respiratory and infectious diseases]

Rapid test for the detectionof Streptococcus pneumoniae

RAPIRUN S. pneumoniaeRAPIRUN S. pneumoniae HS(for otitis media and rhinosinusitis)

Rapid test for the detection ofinfluenza A and B viruses

Quick Navi-Flu2*5 Rapid test for the detection of adenovirus

Quick Navi-Adeno*5 Rapid test for the detection ofrespiratory syncytial virus

Quick Navi-RSV*5

Rapid test for the detection of influenzaA and B viruses and respiratory syncytial virus

Quick Navi-Flu+RSV*5

Rapid test for the detection of norovirus

Quick Navi-Noro2*5 Rapid test for the detectionof group A beta-hemolytic streptococcus

Quick Navi-StrepA2*5 [Medical equipment etc.]

Equipment for the measurement of 13CO2 level in thebreath for detection of H. pylori

POCone Ion selective analyzer

FingraphSeries of urinalysis test stripsfor compounds / metabolites

Uropaper III “Eiken”*6

Topical new quinolone antibacterialagent

Acuatim Agent for the treatment of keratosis

Urepearl

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Two Core Businesses | Pharmaceutical Business

UTRACEUTICALSNutraceutical Business ProductsPOCARI SWEATPOCARI SWEAT ion waterORONAMIN C DRINKORONAMIN C ROYALPOLIS

Calorie MateGerbléNature Made(Some granted Food with Function Claims)

Fibe-Mini(One form approved as Food for Specified Health Use)

energenJogMate Protein JELLYBODYMAINTÉAmino-Value(Some forms granted Food with Function Claims)

Kenja-no-shokutakuDouble Support(Food for Specified Health Use)

Kenja-no-kaimin Sleep Rhythm Support(Food with Function Claims)

OMUGI SEIKATSU (Food with Function Claims)

theCALCIUM

Soylution* For Women’s Health Cosmedics* For Infants

OTC Drugs

SOYJOYSOYSH SoyCarat*Soy + solution

EQUELLEEQUELLE Gelée

InnerSignal (Some approved as Quasi Drug)

UL·OS (Some approved as Quasi Drug)

*Cosmetics + medicine

BeanStalk**Products sold by Bean Stalk Snow Co., Ltd.

Oronine H Ointment NEW SARALIN

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Two Core Businesses | Nutraceutical Business

Think and ActBeyond Borders

We are committed to addressing social and regional issues while maintaining a broad perspectivebased on our corporate philosophy of “Otsuka-people creating new products for better health worldwide.”

For example, by carrying out research and development in collaboration with research centers around the world,we seek to improve people’s health though exploring new approaches to treatment, while maintaining respect for their individual customs and cultures.

Named to symbolize an encounter with the new world, Vega Hall is a conference facility at our Human Resource Development Institute in Tokushima, Japan.

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In conversation with Mr. Sudo are Otsuka Pharmaceutical Development & Commercialization (OPDC, U.S.) Executive Vice President/Chief Strategic Officer Robert McQuade, Astex Pharmaceuticals (U.K.) President & CEO Harren Jhoti, and Mika Uematsu, a research scientist responsible for synthesis at the Otsuka Pharmaceutical Medicinal Chemistry Research Laboratories. How is Otsuka Pharmaceutical embracing this new era, which could be described as a transformational period for the pharmaceutical industry?

Growing together on an equal footingSudo: For a long time, drug discovery mostly meant creating low-molecular-weight compounds. But in the last decade or so, there has been significant progress ingenetic engineering and molecular biology, and new discovery technologies have emerged. For some diseases that have been difficult to treat, new discovery methods have resulted in molecular-targeted drugs, antibody drugs, and cancer

immunotherapies. Otsuka also collaborates with leading academic institutions and venture companies in order to advance this new drug discovery research.Jhoti: As modalities are increasingly diversified along with the evolution of science in areas such as peptide drugs, oligonucleotide drugs, cell therapy, and regenerative medicine, we need to constantly incorporate new ideas and broaden the scope of drug discovery technologies.McQuade: Otsuka has discovered a number of unique drugs in Japan, such as Abilify, Rexulti, and Samsca/Jinarc/Jynarque, and OPDC has been carrying out clinical development of these globally. We have learned a lot from our collaborations, and these are now a major asset for us. In recent years, many promising bio-ventures have collaborated with Otsuka, and the idea of ‘horizontal collaboration’— creating new drugs while growing together and leveraging one another's strengths, all on an equal footing—is important.Sudo: There are some pharmaceutical

companies that acquire existing technologies and development assets through serial acquisitions of other companies. But in Otsuka’s approach, regardless of whether it’s an acquisition or an alliance, the companies remain on an equal footing. We believe it’s important to respect one another's corporate culture and history.

Jhoti: It is also essential to establish and foster a global collaboration system. Otsuka has research bases in Japan, the U.S., Europe, and China. I oversee drug discovery at Astex in the U.K., but we go beyond national or cultural boundaries in the way we conduct our research, sharing expertise and the latest technologies and mining the power of diversity. There is always a lively exchange of opinions at the global drug discovery meetings held annually in Tokushima Japan.Uematsu: As a young researcher, I get a real sense that we are offered the opportunity to be actively involved with our colleagues around the world. I am responsible for synthesis research, and there are various unique approaches to drug discovery which have made me aware of new and different things, and this is a really good stimulus for me.Sudo: Drug discovery is entering a new phase. The world has become more connected, and we bounce opinions off each other. By keeping a broad perspective and a sense of mutual respect, we’re trying to create a system that enables us to more quickly discover the potential for new drugs.

Not sticking to our own technology, even if we are confident in itUematsu: Otsuka is using approaches to encourage the development of both“first-in-class” and “best-in-class” drugs that can help to address unmet medical needs. Sudo: In these circumstances, collaboration

Robert McQuade Ph.D. (center right)Executive Vice President/Chief Strategic Officer, Otsuka Pharmaceutical Development & Commercialization

Harren Jhoti Ph.D. (left)President & CEO, Astex Pharmaceuticals (U.K.)

Toshiki Sudo Ph.D. (center left)Executive Director of Research and Intellectual Property, Otsuka Pharmaceutical

Mika Uematsu (right)Research scientist responsible for synthesis, Medicinal Chemistry Research Laboratories,Otsuka Pharmaceutical

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Future drug discovery research — where are we headed?In the world of drug discovery and development, where it can take decades to deliver an innovative new drug to patients, the adoption of cutting-edge technologies has led to an increase in therapeutic approaches in recent years. Toshiki Sudo, executive director of the research division at Otsuka Pharmaceutical, and three people who work in the front lines of R&D in the Otsuka group of companies, talk about the drug discovery research they carry out in collaboration with colleagues around the world.

4becomes very important. For example, in the fields of cell therapy and gene therapy, we are collaborating with Osaka University, RIKEN, Takara Bio and other companies. In the area of antibody drugs, Otsuka acquired the U.S. biotech Visterra, which has expanded possibilities to approach promising targets in a completely new way with antibodies. Astex is a leading company in fragment-based drug discovery, which utilizes an advanced technology of target protein X-ray structural analysis. New drugs created through the use of this technology already are contributing to the treatment of intractable diseases.Jhoti: What underlies all this is the confidence that each and every researcher has access to high-level technology.Sudo: That's important. But even if we persist, the concern remains about being left behind in rapidly changing times. That's why we place emphasis on doing things that other pharmaceutical companies don’t do, with a more flexible, even boundaryless approach. I think that attitude is what defines Otsuka.

How has Astex changed since joining the Otsuka group in 2013?Jhoti: We continue to carry out research using the discovery methods that we have been working on and are committed to. Fragment-based drug discovery, a technique Astex created through the ingenuity and passion of our researchers, is an embodiment of the Otsuka culture of ‘creativity and actualization.’ As researchers, we are always aiming to do what has never been done before. Joining the Otsuka group of companies

allowed us to expand the network in which we do discovery and development, while maintaining our identity. This has strengthened our discovery capabilities, in turn advancing our oncology portfolio. We now employ our technology in collaboration with researchers in Japan to address unmet needs in neurodegenerative disorders. I hope that our exchanges with Otsuka researchers will continue to thrive.Sudo: In 2018, the U.K.’s Bioindustry Association awarded Mr. Jhoti the Lifetime Achievement Award, its highest honor. As a role model for biotech entrepreneurs, he has been a great encouragement for Otsuka group company researchers worldwide.

New value that cannot be achieved with drugs aloneUematsu: Innovative new products are now being approved in the field of advanced

medicine, and one of the most important of these may be digital medicines. The concept is based on

a fusion of a medicine, IoT (Internet of Things) and pharmaceutical technology. Otsuka received the first-ever regulatory approval for a digital medicine, and due to it being an unprecedented product, it was difficult to secure approval, as there were no existing rules for review. There were no established production methods either.McQuade: Yes, this was Abilify MyCite, developed in collaboration with the

California-based IT venture company Proteus. As a world first, it received a huge amount of global attention. It is a revolutionary product that incorporates a tiny sensor, developed by Proteus, into each tablet of Otsuka’s antipsychotic drug Abilify. Historically, there has been a challenge of poor adherence from patients, especially those with psychiatric diseases. This can result from a number of factors, including patients being unaware of their condition, forgetting to take their medicine or having unpleasant side effects that caused them to stop taking it, ultimately increasing the risk of disease relapse. Abilify MyCite offers an innovative solution, and its development represented a whole new challenge that went beyond the conventional definition of a medicine.Sudo: It's reflective of Otsuka’s unique approach, like painting a new picture on a completely blank canvas.McQuade: We are also taking on the challenge of combining digital and medical intervention in developing the world's first digital therapeutic prescription app for major depression.Jhoti: Providing new value that cannot be achieved with drugs alone is an area in which we have increasingly high expectations. Astex is also playing a leading role in establishing cryo-electron microscopy* for drug discovery.Sudo: We inherited from our predecessors the research philosophy to ‘always take the difficult path’ and ‘only do things that are world class.’ Flexible research and development that embodies these ideas tends to produce results.

1514*A trio of researchers who contributed to the development of this observation method were awarded the 2017 Nobel Prize in Chemistry.

Research in four locations in anera of diversifying methodologies The modulation of biological targets has been the primary method used in drug discovery. At Otsuka, we actively collaborate with leading academia and venture companies worldwide so as to introduce new technologies and expand our range of exploration through a global R&D network.

Tokushima

Boston

Cambridge

Shanghai

Japan United Kingdom

United States China

Our drug discovery research began at our Tokushima Research Institute in 1971. Since then, we have independently developed many unique compounds through a combination of unconventional thinking, passion and the introduction of innovative technologies. With the development of products such as the antipsychotic drugs Abilify and Rexulti, the aquaretic drug/ADPKD treatment drug Samsca/Jinarc, and the multidrug-resistant tuberculosis treatment drug Deltyba, we contribute to the health of patients worldwide who struggle with social reintegration in the face of psychiatric conditions, and intractable diseases.

Visterra, is a clinical-stage biotechnology company developing a robust portfolio of innovative antibody-based therapies for the treatment of patients with kidney diseases and other hard-to-treat diseases. Its proprietary technology platform enables the design and engineering of precision antibody-based drug candidates that bind to, and modulate, key disease targets. It is hypothesized that this technology will enable treatment of diseases that are not adequately addressed by conventional therapeutic approaches. Visterra was acquired by Otsuka in 2018.

Founded in 1999, Astex pioneered the development of small molecule drug discovery using X-ray crystallography to screen small fragments of drug-like molecules. Astex is now recognized worldwide as a leader in fragment-based drug discovery. Astex has successfully used its proprietary approach, called Pyramid™, to generate potential therapies for the treatment of cancer and diseases of the central nervous system. Astex is conducting clinical development of its own products and has a number of products developed in close collaboration with leading pharmaceutical companies. These include Novartis’ Kisqali®, approved in 2017 in the U.S. and Europe for the treatment of breast cancer, and J & J’s Balversa™, approved in 2019 for the treatment of metastatic urothelial cancer.

Otsuka Shanghai Research Institute was established in 2008 in Zhangjiang Hi-Tech Park in Shanghai. A drug discovery research center, it was the first basic research institute established by a Japanese company in China. Researchers here collaborate with colleagues at other research centers within the Otsuka group of companies, including those in China that have their own screening systems, with the aim of creating innovative drugs for infectious diseases and diseases of the central nervous system.

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Otsuka’s approach to healthOur Nutraceutical business develops products and services that can be used on a daily basis to maintain and improve health, Utilizing a solid scientific basis including the expertise accumulated in our pharmaceutical business.As the world's population ages, and with Japan leading this trend, we are headed toward a super-aged society. With health as the keyword, we need to tackle the situation while also understanding social issues such as increasing healthcare costs and workforce shortages.

Create a healthy environmentacross society as a wholeUsually, when people develop a physical health problem, they either persevere in the face of suffering or seek medical treatment at a hospital. However, we believe that in the coming years it will be essential to regard health as a social issue, and to maintain good health across society before the signs of sickness appear, through support for the improvement of people’s everyday health.

Create new valueThere are three major requirements for the success of a solution that supports

the health of consumers. The first is to have a science-based product backed by evidence of its health benefits; the second is to develop services that are supported by healthcare professionals; the third is to provide solutions to needs that consumers have not yet even acknowledged, and which provide value in entirely new ways, leading to healthier, richer daily lives.This is also true for research and development. Otsuka’s unique approach does not use imitation but stems from our commitment to create new value that did not previously exist in the market, to have a global perspective, and to contribute to people’s health worldwide. The focus of our research is on areas related to the biological activity within the body that enables people to live healthy and happy lives. This has been set as an important research theme to further our understanding of health.

Emphasizing points of contactbetween consumers andsociety to solve health problemsOur efforts are not just about getting products into people’s hands. They are about discovering needs or issues that consumers are unaware of, and providing health information together with products. To that end, we collaborate with local

governments and businesses, emphasize the points of contact between consumers and society, and work to convey the value of health created by Otsuka’s unique efforts.For example, by continuing to convey the development concept and product value of a “drinkable IV” that can easily replenish lost fluids and electrolytes, we created an entirely new market of ion beverage drinks with the launch of POCARI SWEAT. Interpreting the daily loss of sweat as a health problem led to the establishment of the POCARI SWEAT brand as an essential part of everyday life. In recent years, as advances have been made with regard to women's role in society, we have focused on the importance of supporting women’s health, while developing EQUELLE, a food containing equol, as a new option for managing age-related changes in the body. In addition, we have developed products such as “Kenja-no-kaimin Sleep Rhythm Support” (The Wise Man’s Sleep Solution) to address the problem of insomnia, which was developed through the study of the body’s internal rhythms, and BODYMAINTÉ, a new kind of conditioning products that helps protect the body from everyday health risks. All of these represent our commitment to developing novel solutions while promoting new health initiatives.

Toward further growth — a system to meet needs globallyIn addition to promoting such activities and approaches that are unique to Otsuka, we are focusing on accelerating our global development. In recent years, we have expanded our POCARI SWEAT and ORONAMIN C DRINK businesses, mainly

in Asia, and EQUELLE in the U.S. With the establishment of a system for meeting new health needs following the recent addition to our group of Daiya Foods, a North American plant-based food manufacturing and sales company, we are confident that our Nutraceutical business will continue to see further growth.In an era when lifespans are increasingly

likely to reach 100 years, concepts such as healthy life expectancy, work-style reform, and health management are in the spotlight. Otsuka is committed to providing new products and solutions to support good health, and through the creation of new markets, to support people worldwide in leading long, independent, healthy lives.

Makoto InoueExecutive Deputy PresidentOtsuka Pharmaceutical Co., Ltd.

What Otsuka can do foreveryday health maintenanceOur Nutraceutical business provides new categories of products and services in the field of health. Rather than simply using promotions to market our products, through a variety of health promotionswe actively share information with society that conveys the importance of everyday health management, and which importantly is based upon scientific research results.Makoto Inoue, executive deputy president of Otsuka, talks about the characteristics of a businessthat supports daily life by addressing health issues, and where it is headed.

A beverage to help protect your body: BODYMAINTÉ

Focusing on internal rhythms, one of the causes of insomnia.Kenja-no-kaimin Sleep Rhythm Support, “The Wise Man's Sleep Solution”

Supporting for Women’s Healthand Beauty: EQUELLE

Knowing that both athletes who push their bodies to the limit, and people who experience daily stress due to work or study are putting their health at risk, we created BODYMAINTÉ. This new brand concept of a “protective beverage” combines ingredients that help maintain physical condition with lactic acid bacteria B240, which long-term research on the digestive tract and lactic acid bacteria has shown to work to protect the body from day-to-day health risks.Released in 2017, BODYMAINTÉ Jelly cansupply the body with lactic acid bacteria B240 and protein at the same time and has earned a following-mainly among athletes concerned about their physical condition at sporting events. In 2018, BODYMAINTÉ Drink was launched, combining lactic acid bacteria B240 and electrolytes (ions) that maintain the body’s hydration levels.

About lactic acid bacteria B240 B240 is a form of plant-based lactic acid bacteria found in miang, a type of fermented tea traditionally consumed in northern Thailand. Otsuka carried out proprietary research, focusing on the fact that miang has long supported the health of local people, and its efficacy for enhancing biological defence mechanisms was confirmed in 2015. By applying it to products in various forms, we believe it can contribute toextending people’s healthy lifespans.

Sleep is essential for a healthy life, but due to the round-the-clock nature of modern society and our diverse lifestyles, 1 in 5 people now feel that they do not get enough recuperative sleep, and many Japanese people struggle with sleep-related problems. To address this, we are focusing on one of the causes-the body’s internal rhythms. In our research and development, we confirmed that asparagus-derived components help to regulate sleep-wake rhythms, and based on this, we developed Kenja-no-kaimin Sleep Rhythm Support, (The Wise Man's Sleep Solution). With a “Foods with Function Claim,” it enhances the quality of sleep and helps you wake up feeling refreshed and revitalized, and it is ideal for people who lead busy lives.

Since 2014, to support the health and beauty of women who will experience changes in their physical condition over time, we have been selling EQUELLE, a food supplement containing equol, a substance produced when soy isoflavones are fermented by lactic acid bacteria. The product supports a healthy lifestyle by acting as a basic supplement for women that helps relieve the mental and physical changes felt by women in their 40s and above. In 2018, we launched the jelly-type beverage EQUELLE Gelée, which combines equol with collagen, calcium and other ingredients that are of particular benefit to women in a single pouch. As well as maintaining surface beauty, it takes a new approach and supports the underlying foundations of beauty and health.

Support for healthy living year roundHere at Otsuka, we have set “extending healthy lifespans” as one of our key research themes.Healthy lifespan is defined as the period for which you can lead your daily life free of health problems: exercise, nutrition, and sleep are very important factors in prolonging this. In order to be able to take on various challenges without worrying about health, and to allow women to lead healthy and energetic lives, we are developing new ways to support modern daily lifestyles.

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Two key points that lead to thedevelopment of BODYMAINTÉ:Research on the digestive tract and nutrition at Otsu Nutraceuticals Research Institute R & D in Otsu focuses on the role of the intestines, vital organs involved in nutrient uptake, and the effects of the healthy bacteria lactobacillus acidophilus on mucosal immunity. Researchers here also validated the effects of lactic acid bacteria B240, which was isolated by researchers at Tokyo University of Agriculture.

Research on exercise and nutrition at Saga Nutraceuticals Research Institute Here, scientists researched nutrients that are essential for athletes to maintain good health and improve their performance, with a focus on hydration and nutrient uptake during exercise. The results were then used in the development of new health products.

A society in which everyone canplay an active part:Women’s Health and Sleep SeminarsIn recent years, work-style reforms, health management, and the success of women in the workplace have been widely discussed. We have held educational seminars across Japan offering accurate information and practical advice related to women’s health and sleep, based on the expertise we have accumulated through our product development and awareness-building activities on the theme of extending healthy lifespans, in a society where everyone can play an active part.

Offering heat disorder countermeasures: ICE SLURRY “cools from the core”

Uniting the feelings of 4,348 people: POCARI GACHI DANCE FES

Since 1992, we have been conducting awareness-building activities with the aim of preventing heat disorders during sports activities. Based on theexpertise accumulated over decades of heat disorder-related research, POCARI SWEAT ICE SLURRY was developed with a focus on core bodytemperature and released on a seasonal basis from 2018. Based on the results of joint research by industry, government and academia that demonstrated the property of “freeze-and-drink” products of efficiently suppressing a rise in core temperature, this product cools the body from the core while replenishing water and electrolytes (ions).

Ever since its launch almost 40 years ago, POCARI SWEAT has served as a healthy beverage supplying water and electrolytes (ions), with promotional activities always based on new ideas and the changing social environment, keeping the brand fresh. In recent years, we havedeveloped the “Gotta drink POCARI!” series of advertisements, which depict hydration as a part of life through images of parents andchildren. Meanwhile, taking a dance-themed approach, in the summer of 2018 we held the POCARI GACHI DANCE FES, in which the core message of “I’m sure I can exceed my expectations and fulfil my potential,” was embodied. A total of 4,348 junior and senior high school students from across Japan participated, and the event was also filmed for a TV commercial, generating a lot of positive attention.

*As of April 2019

For many years, we have been engaged in dietary education activities through our food supplements. At the same time, we see that with fewer opportunities to cook at home and more people eating alone, it is becoming difficult to learn about food. Against this background, and with the desire to provide children with knowledge about a healthy diet and nutrition at home while also offering opportunities for fun and communication between parents and children, we released the AI dietary education app “Deliciously I llustrated SketchCook” in the spring of 2018, before seeing it introduced as a teaching material in Japanese elementary school classrooms in the fall. We intend to continue collaborating with local governments throughout the country to teach the next generation about the importance of meals and nutrition.

Fun dietary education for children using AI: Deliciously Illustrated SketchCook

Nurturing our connections with societyThrough our unique range of products, we promote activities that offer new ways to conveythe importance of health management.We have entered into collaborative agreements with 45 prefectures*, and together with local governments, schools, companies, and organizations we aim to find solutions to local health problems, develop newproducts to solve anticipated future challenges, and expand our efforts in line with changing social needs.

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Supporting athlete conditioning:The Asian Games

The Asian Games is the largest general sports event in the Asian region and is held every four years. At the 18th Games held in Indonesia in 2018, we supported the tournament as an official partner helping athletes compete in their best physical condition. We contributed to the conditioning of athletes by establishing the POCARI SWEAT House in the athletes’ village and providing information and products such as POCARI SWEAT and BODYMAINTÉ.

Establishment of Otsuka Myanmar:

Direct-to-consumer sales in the United States:EQUELLE

EQUELLE is a food containing equol, an ingredient which contributes to women’s health. Since 2017, the product has been marketed in the United States through health practitioners, as a product with structure/function claims of reducing the frequency of hot flashes associated with menopause, and relieving muscle discomfort including shoulder stiffness associated with menopause. In 2019, in order to contribute to the health of more women in the United States, we started the development of an online sales channel aimed at general consumers, enabling us to provide information and products related to menopause and equol directly to women in the United States who want to deal with health problems in a more natural way, without using pharmaceuticals. It offers the option of a supplement containing equol and helps women understand their bodies and cope with the symptoms as their body’s change over time.

Expanding sales to Indonesia:ORONAMIN C DRINK

In 2018, we established a halal production line and began manufacturing and selling the carbonated nutrient drink ORONAMIN C Drink in Indonesia, where economic growth has led to rising health awareness.

Expanding to Hong Kong:Men’s skincare brand UL·OSBased on the Cosmedics* concept of “healthy skin is beautiful skin,” we have continued our research and development of skincare products with unique ideas and technologies. UL· OS, which was launched as a skincare brand for men in 2008, was launched in Hong Kong in 2019, following its release in Korea. In addition to contributing to skin health, we hope to contribute to therevitalization of the men’sskincare market in Hong Kong.*Cosmedics = cosmetics + medicine

Daiya Foods, which develops and manufacturesplant-based foods in North America and was established under the motto of “A love for food and a commitment to healthy living,” joined the Otsuka Pharmaceutical group in 2017. They develop high-quality, creative nutritional products, which have broad appeal among people who are highly health conscious, including vegetarians and people with food allergies and intolerances. As a pioneer of plant-based foods, they will continue to produce food products that can be enjoyed on a daily basis.

A pioneer of plant-based foods: Daiya Foods

In the spring of 2019 we established the health beverage business Otsuka Myanmar Co., Ltd with the aim of increasing our marketing activities in the country to promote the value of the POCARI SWEAT brand and expand our business.

Health beyond bordersWith the aim of contributing to people’s health worldwide, our nutraceutical business activities are rooted in the culture of each region, with local management helping further promote our global business development.

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HARMACEUTICALS

UTRACEUTICALS

Samsca REXULTIABILIFY MAINTENA

Products that offer a new approach to healthcare

BODYMAINTÉ DrinkPOCARI SWEAT ICE SLURRY SOYJOY Crispy Sakura UL·OS Medicated Skin Breezy Lotion

1981:M

ikelan and Meptin licensed out in Europe and U.S.

1990:Launch of M

ucosta in Japan

2002:Launch of ABILIFY in U.S.

2009:Launch of Sam

sca in Europe and U.S.

2016:Launch of ICLUSIG in Japan

2019:Launch of Selincro in Japan

1980:Launch of M

ikelan and Meptin in Japan

1988:Launch of Pletaal in Japan

2006:Launch of ABILIFY in Japan

2010:Launch of E Keppra in Japan

Launch of Samsca in Japan

2013:Launch of ABILIFY M

AINTENA in U.S. Launch of NEUPRO Patch in Japan

2014:Sam

sca receives first approval as ADPKD treatment

Launch of DELTYBA in Europe and Japan Otsuka com

mences sales of NUEDEXTA following the acquisition of Avanir

2018:Launch of REXULTI in Japan

Launch of JYNARQUE in U.S.

2015:Launch of REXULTI in U.S.

Launch of ABILIFY prolonged release aqueoussuspension for intram

uscular injection in Japan

1965:Launch of ORONAM

IN C DRINK in Japan

1980:Launch of POCARI SW

EAT in Japan

1982:Launch of POCARI SW

EAT in Hong Kong and Taiwan

1983:Launch of Calorie M

ate in Japan

1988:Launch of Fibe-M

ini in Japan

1993:Launch of Nature M

ade in Japan

2003:Launch of Am

ino-Value in Japan

2005:Launch of Kenja-no-shokutaku in JapanLaunch of InnerSignal in Japan

2006:Launch of SOYJOY in Japan

2008:Launch of UL·OS in Japan

2010:Launch of Gerblé in Japan

2013:Launch of POCARI SW

EAT ION WATER in Japan

2014:Launch of EQUELLE in Japan

2017:Launch of Kenja-no-Kaim

in Sleep Rhythm

Support in JapanLaunch of BODYM

AINTÉ in Japan

A history of tough challenges overcomein the pursuit of better healthOur pharmaceutical business is focused on creating breakthrough diagnostics and treatments for disease.These are complemented by products for the maintenance and improvement of health, offered by ourNutraceutical business.Our Nutraceutical business has developed a range of innovative consumer products with a solid scientific base, utilizing the expertise accumulated in our pharmaceutical business.We continue to take on new development challenges by thinking outside of the box, using trial and error, and not being restricted by preconceived limits.

Development Stories

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Abilify MyCite: the first-in-the-worlddigital medicine systemPatients with mental illnesses can be unaware of their illness, or forget to take their medicine, or stop taking it altogether due to concerns about side effects. These issues can lead to a relapse of their illness. It was with this in mind that we developed the Abilify MyCite system, which consists of our own antipsychotic pill, ABILIFY, together with an embedded tiny sensor and a wearable patch, both developed by Proteus, as well as a smartphone app. Approved in the U.S. in November 2017, it is the first-ever digital medicine system to receive regulatory approval and marks the start of a new era in drug treatment.

REXULTI: Fewer side effects for more patients

We have continued to develop new antipsychotic drugs by utilizing the experience and expertise we have cultivated over many years. Our newest antipsychotic drug REXULTI was developed as both a dopamine partial agonist in addition to having the pharmacological action known as SDAM (serotonin–dopamine activity modulator), which strongly binds to serotonin receptors. In 2015, REXULTI was approved in the U.S. for two indications: an adjunctive therapy for major adult depressive disorder (MDD) and a treatment for adult schizophrenia. The drug has subsequently been approved in several other countries. We are also conducting clinical trials for its use as a treatment for disorders such as agitation associated with Alzheimer’s-related dementia.SDAM: Abbreviation for Serotonin Dopamine Activity Modulators.SDAMs act to stabilize both dopamine and serotonin neurons.

Serotonin receptors: Proteins that bind to serotonin, a substance affecting mood stabilization, and that generate signals within the cells they are attached to.

Developing effective treatments for central nervous system disorders, the causes of which are not yet fully understood, is an area of research and development that poses significant challenges and remains a high priority. In the past, drugs that simply blocked nerve action were common in the treatment of mental disorders, but in recent decades, more advanced therapeutic drugs have been developed. Such drugs include our own ABILIFY. We continue to pursue the development of flexible, pioneering treatments that allow for the reintegration of patients into society.

Central nervous system disordersRegulating rather than blockingthe nerves

Unconventional thinking fromobserving mice that fell asleep: ABILIFYIn the Otsuka labs back in the 1970s, lab mice fell asleep during research into antihistamines that were not expected to cause drowsiness. Normally, such an experiment would have been considered a failure, but by employing reverse thinking, our researchers saw this as an opportunity, as the result showed that the compound had crossed the blood-brain barrier into the brain. Otsuka decided to pursue research into the compound’s pharmacological action on the nerves, and following 30 long years of research and development, the result was ABILIFY, the first-ever antipsychotic drug that is a dopamine D2 receptor partial agonist. Thanks in part to its few side effects, the uses for ABILIFY gradually increased. Widely supported among both patients and physicians, it is currently prescribed in approximately 60 countries. ABILIFY became the number-one selling drug in the U.S., and made a major contribution to Otsuka’s global expansion.

Partial agonist: Suppression of dopamine secretion when it is high and activation of secretion when it is low.

Number-one selling drug: Based on MIDAS Quantum 4Q 2013 sales data. Copyright © 2019 IQVIA.

ABILIFY MAINTENA: once-a-monthtreatment for schizophreniaIt is said that fewer than 50 percent of patients with psychiatric disorders continue taking medication over the long term. This gives rise to the problem of repeated hospitalizations brought on by relapses. In response to this, we developed ABILIFY MAINTENA, which sustains the effect of the medication with a once-monthly injection. The production of this intramuscular drug required advanced sterilization technology and equipment and management at global standard,but these hurdles were cleared one by one. ABILIFY MAINTENA was launched in the U.S. in 2013 and in Japan in 2015 and is now making a contribution to the social rehabilitation of patients in over 35 countries around the world.

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Development Stories | Central Nervous System Disorders

Innovation leads to a treatment for ADPKDAs a compound with a unique mechanism, Samsca was also found to have the potential to treat completely different conditions. After the discovery that it had the potential to slow the progress of ADPKD, a life-threatening kidney disease, a joint multiregional clinical study was carried out with over 1,400 patients in 15 countries. Thanks to the collaboration of the many doctors and patients involved, Samsca was approved in Japan in 2014 as the first-ever ADPKD treatment. In 2018, It was approved as JYNARQUE in the U.S., bringing a sense of relief to many more patients with ADPKD.

ADPKD: Autosomal dominant polycystic kidney disease. A hereditary disease characterized by the growth of numerouscysts in the kidneys. As the cysts grow, kidney function decreases.

“ADPKD is a hereditary disease, in which cysts in the kidney multiply and expand, leading to decreased kidney function. About half of people in Japan with ADPKD experience kidney failure in their 60s. Already, many patients in Japan taking Samsca have reported a decrease in kidney pain. If treatment effects could be quantitatively and objectively measured, as can be done with medications for high blood pressure and diabetes, ADPKD patients would be further encouraged on the benefits of taking the drug, supporting research in this direction.”

“Many members of my family have suffered from the genetic kidney disease ADPKD. My father was the first in the family to actually be diagnosed with ADPKD, and told me I should also get tested. Fortunately, I was able to participate in the clinical trial for tolvaptan, which I’ve now been taking for over 14 years. We now have three wonderful children, and I do worry about them, but the news of the tolvaptan approval for ADPKD provided me and my family with tremendous hope. We are extremely grateful to Otsuka Pharmaceutical.”

Greatly encouraging for doctors

“Our family has been waiting for this”

Dr. Eiji Higashihara, professor, Hereditary Kidney Research, Kyorin University School of Medicine

Mr. Bill Brazell (PKD patient advocate)

The first-ever oral aquaretic, SamscaAfter the research began in 1983, thousands of compounds were screened before one with the necessary properties was found, and it took three years to complete a prototype. But the researchers never lost their spirit of inquiry and persevered until the research bore fruit 26 years later. Samsca, a first-in-class drug, was launched in America and Europe in 2009, in Japan in 2010, and in multiple other Asian countries in 2011. It is currently being used to treat hyponatremia and edema caused by heart failure or liver cirrhosis in over 20 countries.

Otsuka Pharmaceutical discovered thepotential of the carbostyril structure in 1971, and it has since become a cornerstone of our drug discovery activities. Using this structure as a base, we have developed a number of original compounds, one of which is Samsca, the first-in-the-world oral aquaretic, and resulting in a new treatment category.

Cardiology &NephrologyA completely new compounddeveloped in Tokushima, Japan

It all began fromone doctor’s comment“What kind of medicine do you want?” “I want a diuretic that only flushes out water.” This conversation triggered new research. Until that point, the diuretics used to treat edema also flushed out necessary electrolytes. As such, the goal of the research was to develop a groundbreaking oral aquaretic that promoted excretion of water without loss of electrolytes such as sodium by blocking vasopressin.

Edema: A type of swelling caused by fluids leaking from blood vessels, resulting in excess fluids trapped within body tissue under the skin.

Vasopressin: A hormone that prevents excessive production of urine (diuresis) by promotingreabsorption of water from the urine into the blood, reducing urine volume.

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Development Stories | Cardiology & Nephrology

Of all diseases, cancer brings with it aparticularly high mortality rate; in Japan it is the leading cause of death. In 1983, Otsuka began its oncology research withthe establishment of the Biwako Laboratory (now the Fujii Memorial Research Institute). In recent years, we have been focusing on blood cancers and immunology, and offering new treatment options incollaboration with both domestic andforeign collaborators. Our work is notlimited to developing treatments, butextends to diagnostics too.

OncologyIncreasing options in the fight against cancer

Applying our strengthsat the molecular level

Development of diagnostic drugs tointernational standards

In 2008, we acquired all business rights to Busulfex, a pretreatment agent for hematopoietic stem cell transplantation for diseases which make it difficult to produce normal blood. In 2010, we started a chronic myelogenous leukemia (CML) drug project in collaboration with Bristol-Myers Squibb, now covering the U.S. and Europe. Since 2013, we have been developing a new anticancer drug, guadecitabine, with our subsidiary Astex Pharmaceuticals. In 2014, we entered an agreement for the molecular-targeted drug ICLUSIG, which dramatically improves the treatment of CML patients who are resistant to other drug therapies. In recent years, we have been actively working with companies and academia to increase the number of treatment options, such as entering into licensing agreements for an oncolytic virus and two gene therapy drugs from Takara Bio, Inc., and Osaka University's new gene therapy drug.

Otsuka is also developing diagnostic drugs. In the case of blood cancers, we sell genetic test diagnostic agents with the high level of detection sensitivity required by international standards. These include products that monitor leukemic cells in acute myelogenous leukemia (AML) and acute lymphocytic leukemia (ALL), and those that can be used to aid diagnosis and check the therapeutic effects of myelodysplastic syndrome (MDS) and CML.

Busulfex: An indispensable drug in the pretreatment of hematopoietic stem cell transplantation, used together with radiation therapy.

Molecular-targeted drug: A drug that interferes with specific molecules involved in the proliferation of cancer cells and blocks the transmission of information.

Hematopoietic stem cell transplantation: A treatment in which stem cells that make blood cells are transplanted to patients who have difficulty in making normal blood.

ICLUSIG: Owned by Takeda Oncology, with which we have an agreement covering Japan and 9other countries and regions.

What isblood cancer?A disease that causes blood cells to become cancerous and proliferate. It is broadly divided into leukemia, malignant lymphoma, and multiple myeloma. Leukemia is further classified into four types, the most common being AML, CML, ALL, and chronic lymphocytic leukemia (CLL). The treatment of CML has greatly improved with the use of recently developed molecular-targeted drugs.

Open innovation in oncologyCollaboration with companies and academia doing specialized research based on innovative ideas.

We promote drug discovery research with enhanced passion and curiosity.

In 2017, we concluded a comprehensive collaboration agreement on advanced research with IFReC (Osaka University Immunology Frontier Research Center). Otsuka Pharmaceutical supports the further development of IFReC's cutting-edge basic research on immunology and aims to share the results of this research with society. This initiative received the Minister of Education, Culture, Sports, Science and Technology Award at the 1st Japan Open Innovation Prize sponsored by the Cabinet Office. In addition, we entered into an exclusive license agreement in 2018 for a new CAR-T Therapy*3 for multiple myeloma*4.*3. A cancer treatment in which the CAR (chimeric antigen receptor) gene, whichspecifically recognizes a protein (antigen) that characteristically appears on the cell surface of a malignant tumor, is introduced into lymphocytes taken from the patient, which are then returned to the patient’s blood.*4. A blood cancer in which cells that produce antibodies in the bone marrow become malignant tumors and multiply and build up in a disorderly way. In recent years, while the number of treatment options and survival rates have increased, this disease remains difficult to cure.

Takara Bio Osaka UniversityIn 2016, we entered into a licensing agreement for development and marketing in Japan of the oncolytic virus C-REV, which Takara Bio is developing as a cancer drug. Oncolytic viruses are expected to destroy cancer cells directly by specifically proliferating only within cancer cells. In March 2019, an application was filed for approval of its use against melanoma. We are also conducting clinical trials for its use against pancreatic cancer. In 2018, we signed a joint development agreement for two gene therapy agents, for synovial sarcoma*1 and acute lymphoblastic leukemia*2.*1. A type of malignant soft tissue tumor. Highly malignant, difficult to treat disease that causes regional and distant metastases.*2. A type of leukemia in which abnormality occurs at the stage when hematopoietic stem cells mature into lymphocytes, and cells which would normally become lymphocytesbecome cancerous and increase rapidly.

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Development Stories | Oncology

The development of POCARI SWEAT began over forty years ago. It was an entirely new concept, featuring an unorthodox blue design and, at that time, an unknown taste. It initially aroused little interest, but went on to become a best-selling drink with a huge fan base across Asia.

Whole idea sparked by IV solutionWhile on a business trip in Mexico, an Otsuka researcher was hospitalized with diarrhea, and subsequently suffered from dehydration. The local physician instructed him to rehydrate with carbonated soft drinks, leading him to wonder if there wasn’t a more suitable beverage to quickly replenish the body’s supply of ion-producing electrolytes and water. Also, he noticed that doctors would drink intravenous solution to refresh themselves after finishing surgery. This became the inspiration behind the idea to develop a "drinkable IV", a beverage close to the composition of the body’s natural fluids that would easily replace lost electrolytes and water.

Continuous effort made to educate people on the need for IV drinksWhile there was a growing interest in healthy living, consumers had neither seen nor tasted a product like this before, and initially they rejected it out of hand. Seeing this, the POCARI SWEAT team researched everyday conditions in which people sweat and sought to convey the concept behind the product, and the importance of replacing

lost electrolytes and water. Staff handed out sample bottles at saunas, baseball stadiums, and other places where people were sweating from heat and exercise, in addition to handing out samples to shoppers. In total, 30 million bottles were distributed in 1980, and after a sustained effort, customers at sports facilities responded well by championing the product. POCARI SWEAT was pitched as a form of drinkable sweat replacement that provided the body with exactly what it needed, and when needed. The product gradually gained traction and then, two years after its debut, became a big hit. This marked Otsuka's successful development of an entirely new market for electrolyte-replacement drinks.This was also a challenge to common sense, which at the time considered hydration during sports as taboo. POCARI SWEAT demonstrated the need to supplement fluids and electrolytes, which is now taken for granted. POCARI SWEAT continues to offer unique value as a health beverage that benefits people through the expertise and unwavering concept cultivated in the medical field, educational activities, and so on.

Awareness-raising activities based on scientific evidenceSince introducing POCARI SWEAT, Otsuka has continued to research electrolyte and fluid replacement. The resulting data has provided additional evidence that the product may be useful in dry environments or during long-haul air travel, with its related risks

of pulmonary embolism and deep vein thrombosis (economy class syndrome). In 1992, the term "heat disorders" was largely unknown in Japan. Otsuka was the first company to cooperate with the Japan Sports Association to form a research team dedicated to finding countermeasures to heat disorders associated with sporting activities. Seeking to promote a wider understanding of heat disorders, we continue to share information about the importance of electrolyte and water replenishment for safety in sports. Today still, in addition to sports we provide guidance on safe hydration in the workplace and for the elderly. Our personnel visit various locations, holding lectures and disseminating the latest information on effective hydration.In 2018, POCARI SWEAT ICE SLURRY waslaunched based on the expertise accumulated through earlier research into heatstroke. Conventionally, ICE SLURRY* would have been considered difficult to commercialize from

the viewpoint of production and storage. However, by developing a unique technology that freezes and partially solidifies a liquid so that it can be stored at room temperature, it maintains its jelly-like state even when refrozen. With the aim of eliminating heatstroke accidents, we have proposed a new countermeasure option for heatstroke, in the form of an entirely new “drinkable ice”.

A product positioned to meet the unique needs of each countryJust two years after the Japan launch, POCARI SWEAT was launched internationally. Today, it is available widely and is particularly popular in Asia. For example, in Indonesia, the product is used as a means of accessible first aid to help recuperate from fever and diarrhea. By rolling out the product to meet the needs of regional customs and cultures, it is now viewed internationally as an indispensable health drink.

Products born of wholly original ideas, now found in many countries. Otsuka’s iconic product lines “POCARI SWEAT” “Calorie Mate” and “ORONAMIN C DRINK” were the result of entirely new concepts thought up by Otsuka researchers, and ultimately led to the establishment of new markets. Here, we introduce the stories behind the development of these three products that are now loved by people far and wide.

Three stories of productdevelopmentNutraceutical Business

There’s a reason why they’re loved

A product that changed the way people think about hydration:POCARI SWEAT

An iconic design that broke new groundThe packaging design for POCARI SWEAT broke an industry tabooupon launch: up until then cool colors were not thought appropriate for food-related products. Expressing the essence of a healthy drink that supplements water and electrolytes, the design is based on the blue of the ocean, with a white breaking wave that also represents the curve of a graph comparing the absorption speed of water with that of POCARI SWEAT. This concept of a drink that allows for rapid rehydration effective for a longer period of time remains strong to this day, nearly 40 years since launch.

* A type of fluid ice in which fine ice particles and liquid are mixed. Testing has confirmed that it reduces the body’s core temperature more efficiently than normal ice because the crystals are smaller and produce more of a cooling effect.

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Development Stories | POCARI SWEAT

Sparked by the idea of developing a carbonated nutritional beverage, the product has since become a favorite among people of all ages and is enjoyed in many countries worldwide.

A carbonated nutritional drink that faced numerous challengesORONAMIN C DRINK was launched in February 1965, during a period that had seen the establishment of a big market for medicinal drinks. Against that background, we had also launched a series of pharmaceutical nutrition drinks, but noted that the industry had tended to prioritize efficacy over taste. This prompted us to start research into a new kind of beverage, unlike any available at the time; it would not only be both nutritional and delicious to drink, but would also be carbonated. However, when registering thenew product as a medicinal health drink with the Japanese Ministry of Health and Welfare at the time, we were told that carbonated drinks could not be classed as medicinal. We then faced the decision of either sacrificing the taste and removing the carbonation, or prioritizing the taste and releasing it as a soft drink. We chose the latter, launching it as a

carbonated nutritional beverage. Distribution then gave rise to another question: should we limit sales to our existing clients-pharmacies-or expand our distribution network to include food retailers? With about 1.6 million general retailers nationwide at the time, even capturing just a quarter of the market would lead to sales in 400,000 outlets, 10 times the number of pharmacies supplied. Naturally, pharmacies that sold

our medicinal products such as Oronine H Ointment and other medicines pushed back, but convinced that it would ultimately benefit them too, our employees worked hard to build connections with retail stores nationwide. This led to expansion of our sales channels to include food retailers and facilities such as restaurants, hotels, railways, public baths, and golf courses.

With its catchphrase of “Genki Hatsuratsu (Full of Vitality)!”, ORONAMIN C Drink has

become a much-loved favorite, enjoyed by multiple generations.

An international cross-generational favorite

While the ingredients, branding, price,*³ and catchphrase of ORONOMIN C DRINK have hardly changed since it first went on sale in 1965, the packaging has been updated in line with modern safety and environmental considerations. The marketing has also changed so as to remain fresh and in keeping with modern times and trends, and the drink is now enjoyed in nine countries and regions.*⁴

A convenient form of nutrition to support modern lifestyles that emerged fromresearch into clinical food.

The original idea was to makenutritional foods for patientseasy to consumeCalorie Mate emerged from research into clinical foods that aimed to provide nutrition to hospitalized people who could not eat normal meals and so could not be discharged. HINEX-R, the precursor to Calorie Mate, was a line of concentrated foods that could be consumed in place of intravenous nutrition. It was the 1970s, and Japanese lifestyles were becoming increasingly modernized. Western diets and instant foods were rapidly making

inroads, while there was an increase in people skipping breakfast and eating later at night. Calorie Mate, a balanced blend of five nutrients*¹ essential to good health combined in a convenient format, was developed as a consumer product for healthy people with on-the-go eating habits. However, the development process was not easy.

Creating public awareness ofnutritionally balanced foodsCreating a product rich in nutrients requires a large number of ingredients, all of which must be evenly distributed to ensure the balance of nutrients is consistent in every bite. To develop such a product, an emulsification process

combining ingredients that would not normally mix was needed. Furthermore, with the emphasis first and foremost on nutritional balance and a great taste, changing the quantity of a single nutrient required adjusting the quantities of every other ingredient, leading to a laborious process of trial and

error. Following a long development process, Calorie Mate was launched in 1983. A single block contains 100 kilocalories, while the canned drink contains 200 kilocalories. In an era when food product labels didn’t list calories, Calorie Mate was revolutionary, clearly displaying both caloric andnutritional content. While there were many products promoted as having rich nutritional content, none pitched theidea of a nutritionally balanced food.

A focus on sports nutritionSeeking to generate an understanding among consumers, at first Otsukatargeted athletes, who require propernutrition and simultaneously need to control their weight. It received a warm reception and word spread to doctorsand nutritionists. The product enteredthe market just as a growing awareness of dieting swept Japan. In the face of concerns regarding the risks of extreme diets, Calorie Mate proved to be a popular and convenient choice. Today, the product is the best-selling item of its kind in Japan.*² We continue to promote its importance in nutritional supplementation in sports, when dieting, as a quick breakfast, at work and school, as well as having some stocked away in case of a natural disaster.

*1. Protein, lipids, carbohydrates, vitamins, minerals. *2. INTAGE SRI; Nutritionally balanced foods market (categories: cookies, biscuits, cereals, cakes), accumulated revenues/unit sales, Jan-Dec 2018

*3. The price at the time of release was 100 yen, making it seem expensive at a time when other soft drinks were about 30 yen.*4. Japan, 5 countries in Middle East, South Korea, Hong Kong, Indonesia (as of the end of December 2018)

Creating a new genre of nutritionally balanced food:Calorie Mate

The beverage loved for more than half a century:ORONAMIN C DRINK

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Development Stories | Calorie Mate & ORONAMIN C DRINK

The creation of world-class products─── A research, development and production system that embodies Otsuka’s DNA

Everything we do is driven by our philosophy, “Otsuka-people creating new products for better healthworldwide. ”At the core is research and development focused on the creation of highly-innovative products, and a production system that ensures a stable supply. We are committed to applying our creativity andexpertise to continue to develop innovative solutions for unsolved health problems.

Always takingthe untraveled path

Providing breakthrough treatments for patients around the world

Research & Development

Pharmaceutical Business Nutraceutical Business

As a total healthcare company, Otsuka takes a whole-body approach to better health. In both our pharmaceutical and nutraceutical businesses, our R&D philosophy places emphasis onencouraging individual researchers to take the untraveled path, pursuing unmet medical needs and exploring fresh ideas that may develop into entirely new markets. They do this within a collaborative, accommodating environment designed to help spark new ways of thinking.

Supporting better health through science-based consumer products In our nutraceutical business, we are developing products thatsupport the maintenance and enhancement of day-to-day health, making use of the expertise we have accumulated in ourpharmaceutical business. We do everything from developing innovative products, such as POCARI SWEAT, a beverage that replenishes waterand electrolytes (ions), and Calorie Mate, which allows easyconsumption of five major nutrients, to creating new categories and markets. In recent years, we have been promoting research and offering solutions related to themes such as extending healthy lifespans and women’s health, and we have launched products including BODYMAINTÉ, developed with a focus on conditioning, and the equol-containing food EQUELLE. After products are launched, we continue to pursue the creation of new value through research at our own research facilities and in collaboration with other research institutes.

In the field of pharmaceuticals, we prioritize our efforts on the development of treatments for psychiatric diseases, neurologic diseases and oncology. Additional areas of focus are cardiovascular and renal, infectious diseases, ophthalmology and dermatology. We believe innovative drugs are, in a sense,“hand-made”. The most important things is to trust in people’s skills and expertise. In pursuit of the development of unique compounds, we have established a global R&D network that spans Japan, Europe, the U.S. and China, and leverages the individual strengths of academic institutes and venture companies.

Production

New products require entirelynew production processes

Ensuring a stablesupply of productsWith over 100 affiliated production sites worldwide, the Otsuka group maintains strict quality, safety and efficiency standards to ensure a consistent, reliable supply of products. Using appropriate technologies, we strive to minimize our environmental impact while simultaneously incorporating the strengths of each location. We also encourage knowledge sharing through exchange visits by experts worldwide.

To produce ground-breaking products, ground-breaking production facilities are necessary. Product developers, engineers and quality control departments work closely together to establish andoptimize new lines. For example, to produce ABILIFY MAINTENA, we overcame many technical challenges, developed a newproduction method and built an entirely new sterile production line to facilitate commercial production.

R&D/Production Sitesin Japan

Principal R&D FacilitiesOutside JapanU.S.●Astex Pharmaceuticals (Clinical Development)●Avanir Pharmaceuticals●Otsuka Pharmaceutical Development &　Commercialization●Visterra Pharmaceuticals

SOUTH KOREA●Korea Otsuka Pharmaceutical

CHINA●Otsuka Shanghai Research Institute●Otsuka Beijing Research Institute

U.K.●Astex Pharmaceuticals　(Drug Discovery and Preclinical Development)●Otsuka Europe　Development & Commercialization

GERMANY●Otsuka Novel Products

●Pharmaceutical R&D sites ●Nutraceutical R&D sites●Production sites *Research institutes engaging in product development for Otsuka Pharmaceutical

GUNMA●Takasaki Factory

HYOGO●Ako Research Institute

OSAKA●Headquarters of Clinical 　Development

TOKYO●Diagnostic Division, 　　Clinical Development 　Department●Headquarters of Clinical 　Development

SHIZUOKA●Fukuroi Factory

SAGA●Saga Nutraceuticals 　　Research Institute●Saga Factory

TOKUSHIMA●Department of Drug Discovery Strategy●Department of Medical Innovations●Department of CNS Research●Department of Renal and　Cardiovascular Research●Medicinal Chemistry Research　Laboratories●Department of Lead Discovery Research●Tokushima Research Institute●Formulation Research Institute●Diagnostic Division,　Research Department●Tokushima Factory●Second Tokushima Factory●Tokushima Wajiki Factory●Tokushima Itano Factor

SHIGA●Fujii Memorial Research Institute●Otsu Nutraceuticals Research Institute●Biwako Institute　(Otsuka Foods Co.,Ltd.)*●Otsu Skin Care Research Institute 　(Cosmedics)

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About Otsuka | R&D and Production Sites

From production to community health─── Engaging in various social contribution initiatives at home and abroad

As part of our efforts to realize our corporate philosophy, we promote the integration of CSR with ourbusiness operations, with the aim of continuing to be an indispensable contributor to society.We are working on a variety of initiatives, including the development of drugs for tuberculosis, which along with AIDS and malaria is one of the world’s three major infectious diseases, as well as addressing public health problems and fostering the next generation.

Someone must continue the research:for the eradication of tuberculosis worldwide

WHO Model List of Essential Medicines: The list includes approximately 300 medicines which are judged to satisfy priority health care needs.

Stop TB Partnership: Established in 2001 with the goal to eliminate TB. Members include international organizations such as the WHO, government agencies, corporations, and patient organizations.

Global cooperation to save patientsWe also promote collaboration with organizations working to eradicate tuberculosis and with global companies that have strengths in public health in regions where we don’t have offices, in order to ensure that DELTYBA is promptly delivered and used appropriately by patients worldwide. DELTYBA was added to the WHO Model List of Essential Medicines in 2015, and we also signed an agreement with Stop TB Partnership’s Global Drug Facility in 2016, DELTYBA is currently available in more than 80 countries.We are also working in cooperation with many stakeholders, including participating in the Global Health Innovative Technology Fund (GHIT), cooperating with Doctors Without Borders, and receiving support from the Bill & Melinda Gates Foundation.

A rural health centerdonated to MyanmarIn rural areas of Myanmar, it is common for midwives to help pregnant women deliver their babies at home. But ensuring a safer childbirth environment is a challenge. To help improve this, in 2016, through the accredited non-profit organization Peoples Hope Japan (PHJ), we donated a rural health center to a village in the northern part of Myanmar’s capital city, Nay Pyi Taw. Midwives provide childbirth assistance, basic treatment, and ongoing health education. Since the center was established, it has been used by about 4,000 people (as of the end of March 2018). In Cambodia also, auto rickshaws (tuk-tuks) for transporting pregnant women in emergency situations have been donated through PHJ.

Lessons for Life: A program in which doctors and cancer survivors visit junior high schools to share their knowledge and experience of illness with pupils and parents.

OTSUKA Health Comic Library: Primarily managed by Otsuka Holdings, this collectionof over 250 print issues also has 80 viewable online.

Communicating the importance of life and health

SATU HATI (One Heart) in IndonesiaAt P.T. Amerta Indah Otsuka, a group company in Indonesia, we have implemented SATU HATI (One Heart), a social action program that focuses on education, the environment, and health, with the aim of coexistence and development with the local community. It includes the construction of elementary school libraries and the donation of books; SATU HATI Academy (a temple hut), where employees take turns to become teachers and teach science and arithmetic to the children; tree planting and afforestation with local governments and environmental groups; in cooperation with the Ministry of Health we are promoting these and other activities that lead to health promotion, such as clean-up activities and environmental education in areas surrounding our plant.

We have co-sponsored “Lessons for Life” for eight years, providing opportunities to think about the importance of life, at a junior high school in a Tokyo suburb. Also, as an initiative supporting thepromotion of children’s health, OTSUKA Health Comic Libraryseries is published once a year and has been donated to elementary schools and special needs schools across Japan for 30 years. Not only do they allow children to freely read and learn about health in a fun way, but they are also used as a tool for health instruction in classes and health committee activities.

With approximately 10 million people developing tuberculosis each year, and about 1.6 million people dying of the disease, it is still a major problem. The United Nations General Assembly High-level Meeting on TB held in 2018 called for its eradication by 2050. Since the beginning of drug discovery research, Otsuka Pharmaceutical has had infectious diseases as one of the themes of its work.DELTYBA, approved and released in 2014, was the first TB drug created worldwide in almost 50 years, and it is also effective against the increasingly serious resistant TB bacteria (multidrug-resistant TB). We are actively working on research and development of new TB drugs and we are positioned as the company making the greatest investment in R&D in the area of TB*. Our aim is to contribute to the eradication of TB, one of the goals of the SDGs, and ultimately to the improvement of public health worldwide.

*Treatment Action Group Report 2005-2017

Multidrug-resistant TB: Tuberculosis that is resistant to the most commonfirst-line drugs used to treat the disease, isoniazid and rifampicin

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About Otsuka | CSR

Each employee’s face is the face of Otsuka

Promotion of diversity and inclusion, with a focus on female careers for corporate growth

Support for flexible working styles thataccommodate childcare and caregiving

Promoting health management,essential for the realization of ourcorporate philosophy

─── Creating an environment where every employee can work in comfort, with passion and commitment.

Otsuka’s success as an innovative, total healthcare company is built on the success of each and everyemployee. Respecting this, we are committed to providing work environments where everybodycan perform to the best of their ability. We actively promote healthy work styles, work-life balance,and embrace diversity and inclusion.

Beanstalk Kids Center Tokushima, one of our two our celebrated inhouse daycarecenters for Otsuka group employees in Japan, provides an environment for youngchildren that fosters creativity. The number of children is now 210, a doublingcompared to the opening year of 2011, and it is now among the largest in Japan. In addition to enabling female employees to continue in their careers, it alsopromotes the involvement of male employees in childcare, hosting men’schild-rearing seminars and joining the IkuBoss Corporate Alliance in 2015. In addition to expanding our employee leave program for nursing care, helpingensure that employees in various situations can continue with their careers, we have also introduced policies to maintain and boost individual employee motivation.

Based on the Otsuka Pharmaceutical Declaration on Health, our employees are supported in their personal efforts to prevent disease and maintain good health. As well as comprehensive health screenings being offered free of charge to employees age 30 and over, we provide health seminars for employees and their families that utilize our scientific knowledge, hold“POCARI/fresh” exercise sessions, and have undertaken the “Tokushima Health Project.” In addition to being recognized under the “Health andProductivity Management Organization Recognition Program -White 500-” for three consecutive years, we were recognized by the Japan SportsAgency as a 2017 Sports Yell Company proactively promoting employeehealth through sports.POCARI/fresh: 8-minute “refresh calisthenics”(POCARI/fresh) carried out once a week withdifferent exercise every week at offices andfactories, under an instructor’s supervision.

Tokushima Health Project: A project for employees working at our Tokushima Japan sites for events related to exercise and diet.

Beanstalk Kids Center: An inhouse daycare center opened on our main Tokushima campus in 2011 for children and grandchildren of Otsuka Group employees. A second center opened in Osaka in 2014

Otsuka Women’s Workshop: A forum for sharing information about childcare. It has promoted the success of female sales representatives and increased the number of employees who continue working following childbirth.

Female executives: Board members, auditors, and operating officers. The average for stock-exchange- listed companies in Japan is 3.7% (White Paper on Gender Equality 2019, Japan Cabinet Office). For Otsuka Pharmaceutical, it is 10.6% (as of late December 2018).

Jun-nadeshiko: A company that conforms to the “nadeshiko brand” designation (= a listed company that excels in promoting women's careers), a joint initiative by the Ministry of Economy, Trade and Industry andthe Tokyo Stock Exchange.

IkuBoss Corporate Alliance: A corporate network to encourage role-model executives and managers who value diversity and inclusion, and the work-life balance of their subordinates

Since the 1980s, when the concept of diversity was not yet widespread in Japan, we have embraced diverse human resource policies as a driving force behind our corporate growth, transcending barriers such as nationality, gender, sexual orientation, age, and disability. We initiated women's forums in 1990. The Otsuka Women’s Workshop, in addition to introducing policies to enable women to continue their careers during marriage, childbirth and childcare, is actively engaged in initiatives such as WING, cross-organizational voluntary leadership study groups. Currently, female leaders are active in various group organizations, and the percentage of female executives is significantly higher than the average for listed companies. Otsuka Holdings became a signatory to the WEPs (Women’s Empowerment Principles) in 2017. In 2019, it was selected for “Jun-nadeshiko” designation.

The Otsuka PharmaceuticalDeclaration on Health

Based on our understanding that the mental andphysical health of each and every employee isessential for the realization of our corporatephilosophy, the management at Otsuka Pharmaceutical declares its commitment to creating a workplaceenvironment that serves to sustain and enhance the health of Otsuka Pharmaceutical employees and their families.

Tatsuo HiguchiPresident and Representative DirectorOtsuka Pharmaceutical Co., Ltd.January 2017

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About Otsuka | Employee Initiatives

Home is the land of swirling currents─── Working together with Tokushima, the birthplace of the Otsuka group of companies.

Established in 1964, Otsuka Pharmaceutical has long been involved in a variety of activities to promote Tokushima. Wherever it does business, the company aims to help cultivate communities and cultures through exchanges and collaborations.

The Otsuka Museum of Art was established in 1998 to commemorate the 75th anniversary of the Otsuka group of companies. It houses 1,000 full-size replicas of ancient and modern masterpieces of Western art, made with ceramic boards that utilize the special techniques of Otsuka Ohmi Ceramics. In 2018, to commemorate the museum’s 20th anniversary, an exhibition room was opened where all seven of Van Gogh’s Sunflowers paintings can be admired in one place. The Sistine Hall was used as the venue for a live broadcast of a New Year's Eve music program, attracting considerable attention. Since being named No. 1 on TripAdvisor's “Museums Worth Visiting” in 2011, it has been awarded a Certificate of Excellence for eight consecutive years.

Otsuka Museum of Art, Sistine Chapel

Otsuka Ohmi Ceramics: Subsidiary established in 1973. The company specializes in the design and manufacture of ceramic tiles (earthenware)

TOKUSHIMA VORTIS©

A museum featuring striking likenesses of masterpieces on large ceramic tiles

Supporting the local culture of our home regionThe Otsuka group companies participate in the Awa Odori (Awa Dance), a traditional cultural event that has its origins in Tokushima Prefecture and has continued for over 400 years. We formed the Otsuka Ren dance team in 1988 and, as a Ren, we aim to build on the traditional Awa Odori while continuing to grow.In addition, we support the conditioning of players on the Tokushima Vortis soccer team using knowledge that we have gained through our two core businesses. We also sponsor events at their home ground, Naruto Otsuka Sports Park Pocari Sweat Stadium. From 2019, with the aim of extending healthy lifespans, three parties including Mima City in Tokushima Prefecture began to offer a citizen's health promotion program, the first time for a J League soccer club to offer a health promotion program as an SIB in the field of healthcare.Through these initiatives, we are cooperating with regional revitalization efforts.

Otsuka Ren: In the Awa Dance Festival, a team is called a “Ren.” Every year, about 100 employees from around Japan come together to dance and perform.

Tokushima Vortis: Professional soccer club in Japan’s J2 League that originated as the Otsuka Pharmaceutical Soccer Club.

SIB: Social Impact Bond. A scheme in which a social problem-solving project is implemented using private funds and compensation is paid by the local government.

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About Otsuka Pharmaceutical | Together with Tokushima

Board Members As of March 2019

Company Name ···········Otsuka Pharmaceutical Co., Ltd. Established ·················August 10, 1964Capital ························20 billion yenHead Office ·················2-9, Kanda Tsukasamachi, Chiyoda-ku, Tokyo 101-8535, Japan

Business description ····Manufacture, distribution, export, and import of pharmaceuticals, clinical testing equipment,　　　　　　　　 medical devices and equipment, food products, cosmetics, and other related productsBusiness premises ·······15 branch offices, 54 district offices (in Japan)Research facilities ·······14 divisions in 5 locations (in Japan) Factories······7 production sites (in Japan)

Net sales (FY 2018 non-consolidated financial results)···································554.1 billion yen(Pharmaceuticals business: 72.8%; Nutraceuticals business: 27.2%) Operating profit: 55 billion yen

President and Representative Director···········Tatsuo HiguchiEmployees ···················5,689

Nobuo KounoStanding Audit & Supervisory Board Member

Hiroshi InakaStanding Audit & Supervisory Board Member

Toshio ShibaStanding Audit & Supervisory Board Member

Hiroshi SugawaraAudit & Supervisory Board Member

Tatsuo HiguchiPresident and Representative Director

Nobuyuki MorishimaExecutive Deputy President and Representative Director

Makoto InoueExecutive Deputy President

Susumu TamaiExecutive Deputy President

Toshiki SudoExecutive Director(Research and Intellectual Property)

Taku SeriuExecutive Director (Product Safety & QualityAssurance, Pharmacovigilance,Regulatory Affairs and Medical Affairs)

Shinichi TairaExecutive Director (Production)

Akemi KanekoExecutive Director (Quality)

Kabir NathExecutive Director (North AmericaPharmaceutical and Global Marketing)

Junji TashiroExecutive Director (Global Human Resources, Headquarters and Otsuka America, Inc.)

Ichiro OtsukaExecutive Director

Mikio BandoExecutive Director (Emerging Countries and Otsuka International Asia Arab Division)

Shuichi TakagiExecutive Director(Finance and Business Portfolio Management)

Corporate Profile As of December 2018

Corporate Philosophy

These words embody our dedication to: creating unique and innovative products; improving health and well-being; andcontributing to the lives of people worldwide. As a total healthcare company, we at Otsuka Pharmaceutical are committed to continuing with the research, development, manufacture, and delivery of products that satisfy customer needs, based on our strengths of “Jissho”— actualization and “Sozosei”— creativity.

Three monuments represent our commitment to actualization and creativityThe Otsuka group’s Human Resource Development Institute is an employee training center in Tokushima City , featuring three monuments in the grounds that symbolize the Otsuka group philosophy. These monuments serve to remind us to set asidepreconceived notions, keep a flexible mindset as we approach new challenges, and be creative in all that we do.

Floating StonesBent Giant CedarGiant Tomato Tree

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About Otsuka | Company Information

Japan: 48companies

Asia & Middle East:

64companiesChinaSouth KoreaTaiwanPhilippinesVietnamThailandIndonesiaIndiaSingaporeTurkeyEgyptPakistanMyanmar

Oceania: 3companiesAustraliaNew Zealand

U.K.SwedenGermanySwitzerlandBelgiumFranceItalySpainCzech RepublicPortugalNetherlands

Europe:

40companies

U.S.Canada

North America:

32companies

Brazil

South America:

2 companies

The Otsuka group of companies has been expanding globally since the early 1970s, with the aim of contributing to the health of people worldwide.To do this, Otsuka has adopted a local-management approach, and currently operates across 30 countries and regions.

Number of companies: 189 Number of Employees: approximately 47,000 (As of December 31, 2018)

Global development of the Otsuka group

�e Otsuka group of companies is a total-healthcare enterprise that aims to contribute to the health of people around the world under the corporate philosophy, “Otsuka-people creating new products for better health worldwide”. Healthcare is broadly and holistically addressed through the two main pillars – the pharmaceutical business for the diagnosis and treatment of diseases and the nutraceutical*1 business to support the maintenance and promotion of everyday health. Our 47,000*2 employees across 189 companies in 30 countries and regions take on challenges across various �elds and themes to help ful�ll the universal wish of people to be healthy. Our pursuit of these challenges is motivated by the Otsuka’s corporate culture, articulated as “Ryukan-godo” (by sweat we recognize the way), “Jissho” (actualization) and “Sozosei” (creativity), and fostered by successive generations of Otsuka leaders. By striving to provide unique products and services, we seek to achieve sustainable growth and be an indispensable contributor to the world. *1. Nutraceuticals: nutrition+pharmaceuticals *2. As of end of December, 2018

As of end of December, 2018

Otsuka Group Corporate Philosophy

Overview

Organizational Structure

Milestones

Financial Highlights

Company Name

Established

President and Representative Director, CEO

Capital

Head O�ce

Business Description

Otsuka Holdings Co., Ltd.

July 8, 2008

Tatsuo Higuchi

81.69 billion yen

2-9 Kanda-Tsukasamachi, Chiyoda-ku, Tokyo

Strategic management and oversight of the group companies, and provision of specialized business services as a holding company of the group

Otsuka Pharmaceutical

Otsuka Holdings

Otsuka PharmaceuticalFactory Taiho Pharmaceutical Otsuka Warehouse Otsuka Chemical Otsuka Foods Otsuka Medical

Devices

1921 Founded as a chemical raw material manufacturer in Naruto City, Tokushima Prefecture

1946 Started infusion (intravenous solutions) production, entering the pharmaceuticals �eld

1965 Launched nutritional drink (ORONAMIN C DRINK), entering the nutraceuticals �eld

1971 Otsuka Pharmaceutical established the group’s �rst pharmaceutical research laboratory

1973 First expansion outside Japan, in �ailand and the U.S.

2008 Established Otsuka Holdings as a group holding company aiming to increase sustainable corporate value

2010 Otsuka Holdings listed on the Tokyo Stock Exchange

For more information about Otsuka Holdings▶https://www.otsuka.com/en/　 For information about Otsuka’s CSR▶https://www.otsuka.com/en/csr/hd_activity/

Revenue by Business Segment（FY2018）

Revenue to external customers

■ Pharmaceuticals 817.1 （JPYbillion）

■ Nutraceuticals 338.6

■ Consumer Products 33.7

■ Others 102.6

Revenue￥1,292.0

billion

Revenue￥1,292.0

billion

Revenue by Geographical Segment（FY2018）

Revenue to external customers

63.3%

26.2%2.6%

■ Japan 645.5 （JPYbillion）

■ North America 347.1

■ Others 299.4

50.0%

26.9%23.1%

7.9%

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Otsuka Pharmaceutical Co., Ltd. Public Relations Department, Shinagawa Grand Central Tower, 2-16-4 Konan, Minato-ku, Tokyo, 108-8242, Japan201906E