Astellas Pharma : Initiatives to Pursue Operational Excellence

Tokyo, November 30, 2016 - Astellas Pharma Inc. (TSE: 4503, President and CEO: Yoshihiko Hatanaka, 'Astellas') is promoting its strategic goal 'Pursuing Operational Excellence' and engaged in ongoing efforts to create organizations and systems that can flexibly respond to rapidly changing environments and realize higher quality and efficiency of operations. As one of these initiatives, Astellas will promote outsourcing of a part of the shared administrative support works for Astellas and its subsidiaries in Japan. Through collaboration with external partners with specialized capabilities, Astellas aims to receive high quality services and promote efficiency while allocating its resources to businesses that contribute to the competitive advantage.

Astellas executed a memorandum of understanding for outsourcing of the facility and equipment management support of such shared administrative support works with Kajima Corporation (TSE: 1812, President and Representative Director: Yoshikazu Oshimi) and Kajima Tatemono Sogo Kanri Co., Ltd. (President and Representative Director: Masao Taku, collectively with Kajima Corporation 'Kajima Group').

In addition to the outsourcing, as a result of re-assessment of the organizational operation structure, Astellas decided that its subsidiary, Astellas Business Service Company Limited ('ABS') which performs the shared administrative support works would be dissolved as of the end of September 2017. A part of ABS' employees are planned to work atKajima Tatemono Sogo Kanri Co., Ltd., or transfer to Astellas or its subsidiaries in Japan. An early retirement incentive program will be also offered to employees working at ABS in the fiscal year 2017.

The impact of the outsourcing to Kajima Group, the dissolution of ABS and the early retirement incentive program on the financial results for the fiscal year ending March 31, 2017 is minor.

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