To Shareholders. Interim Report for the First Six Months of Fiscal Year 2016

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1 To Our Shareholders I thank you sincerely for your ongoing support. Here, we provide an overview of the Company s operating performance during the first six months of fiscal year 216. To Shareholders Interim Report for the First Six Months of Fiscal Year 216 Haruo Naito Representative Corporate Officer and CEO While an increase was recorded following growth of Lenvima (anticancer agent) and Fycompa (antiepileptic agent) as well as the contribution from newly added consolidated subsidiary EA Pharma Co., Ltd., Group revenue finished overall at 269,894 million (down 2.% year on year) due in part to the impact of national drug price revisions in Japan and foreign currency fluctuations. Operating profit totaled 38,59 million (up 113.5% year on year) owing to one-off income following the acquisition of EA Pharma shares (gain from a bargain purchase) as well as growth in global brands, improved performance and efficiency in operations, while making proactive investment in priority research and development projects. Profit for the period came to 29,577 million (up 165.6% year on year). Eisai Supports WHO s LF elimination The Company intends to set the interim dividend for the period (at the end of the second quarter) at 7 per share (same amount as the previous year), and expects to set the year-end dividend at 8 per share (total dividend of 15 per share for the year). We ask all of our shareholders for their continued support going forward.

2 Stock Information Shareholder Return (As of September 3, 216) Total number of authorized shares 1,1,, Number of shares issued and outstanding 296,566,949 Number of shares held as treasury stock 1,55,45 Number of shareholders 59,368 Principal Shareholders (As of September 3, 216) (Thousands of shares) % Japan Trustee Services Bank, Ltd. (Trust Account) 31, The Master Trust Bank of Japan, Ltd. (Trust Account) 24, JP Morgan Chase Bank , Nippon Life Insurance Company 12, Saitama Resona Bank, Limited 7, Trust & Custody Services Bank, Ltd. as trustee for Mizuho Bank, Ltd., Retirement Benefit Trust Account 5, re-entrusted by Mizuho Trust and Banking Co., Ltd. The Naito Foundation 4, Credit Suisse Securities (USA) LLC Spcl. For Excl. Ben 4, The Bank of New York Mellon SA/NV 1 3, Trust & Custody Services Bank, Ltd. (Security 3, Investment Trust Account) Notes: 1. Number of shares has been rounded down to the nearest thousand. 2. The percentage of shares held is calculated in proportion to the number of issued shares and outstanding including treasury stock. 3. Treasury stock (1,55 thousand shares, 3.54%) has been excluded as it has no voting rights. 4. The chart includes only those major shareholders that were listed in the shareholder register as of September 3, 216, and whose names could be confirmed. The Company is devoted to providing sustainable and stable dividends based on a healthy balance sheet while giving consideration to various factors such as consolidated financial performance, the dividend on equity ratio (DOE)* 1 and free cash flow. Acquisition of treasury stock may be carried out appropriately after factors such as the market environment and capital efficiency are taken into account. DOE is an index contributing to shareholder value that encompasses both the dividend payout ratio, which measures the extent to which profits are distributed to shareholders in the form of dividends, and return on equity (ROE)* 2, which measures capital efficiency. Also, DOE shows the ratio of dividend to shareholders equity and thus serves as an index for balance sheet management. The Company intends to set the interim dividend for the period (at the end of the second quarter) at 7 per share (same amount as the previous year), and expects to set the year-end dividend at 8 per share (total dividend of 15 per share for the year). *1 DOE (Dividend on equity attributable to owners of the parent ratio) = Total dividend payout / Equity attributable to owners of the parent *2 ROE (Profit ratio to equity attributable to owners of the parent) = Profit attributable to owners of the parent / Equity attributable to owners of the parent Changes in Dividends and DOE Year-end dividend Interim dividend DOE (Yen per share) FY212 FY213 FY214 FY215 FY216 7 (Full-year forecast) (%)

3 Consolidated Financial Results (IFRS) Full year Six months ended September 3 Revenue (Billions of yen) R&D Expenses (Billions of yen) Revenue by Therapeutic Area The others (Figures are rounded.) Neurology area products 8. billion, 29.6% Of which, Aricept 25.1 billion FY215 FY216 FY215 FY216 Oncology area products 57.9 billion, 21.5% Of which, Halaven 18.6 billion Lenvima 9.6 billion Revenue by Reporting Segment Other 4.7 billion, 1.7% EMEA pharmaceutical 18.2 billion, 6.7% Japan pharmaceutical billion, 55.5% Operating Profit (Billions of yen) Profit for the Period (Billions of yen) Asia pharmaceutical 17.1 billion, 6.3% China pharmaceutical 23.4 billion, 8.7% Profit by Reporting Segment Americas pharmaceutical 56.9 billion, 21.1% Other.9 billion, 1.% EMEA pharmaceutical 6.6 billion, 7.3% Asia pharmaceutical 4.7 billion, 5.2% Japan pharmaceutical 55.6 billion, 6.9% FY215 FY216 FY215 FY216 China pharmaceutical 7.3 billion, 8.% Americas pharmaceutical 16.2 billion, 17.7% This report includes forward-looking statements with respect to plans and forecasts of future results. Please understand that actual performance may differ significantly from these projections. R&D expenses of 55. billion, Group headquarters management costs and other expenses of 7.1 billion and gain from a bargain purchase and others of 9.4 billion are not allocated to reporting segment profits.

4 Ongoing Research & Development Projects Development progress since April 216 is as follows. (As of October 31, 216) Therapeutic Areas Neurology Oncology Gastrointestinal Disorders Other Product Name (Research Code) Fycompa (E27) Form Oral Description Antiepileptic agent/additional formulation: Oral suspension Anti-insomnia agent/insomnia disorder* 1 E26 Oral Anti-insomnia agent/irregular sleep-wake rhythm disorder associated with Alzheimer s disease* 1 E269 Oral Anti-Alzheimer s agent/early Alzheimer s disease* 2 Belviq (APD356) Oral The Company to Initiate Phase III Clinical Study of Lenvatinib (Japanese name: Lenvima) for Advanced Renal Cell Carcinoma In September 216, the Company initiated a global Phase III clinical study of its in-house developed anticancer agent, lenvatinib, in respective combination regimens with the anticancer agent everolimus and the anti-pd-1 antibody pembrolizumab as a potential first-line treatment for advanced renal cell carcinoma. As this combination therapy is expected to enhance antitumor activity than monotherapy, the Company aims to acquire approval as soon as possible. Region Antiepileptic agent/additional indication: Monotherapy for partial-onset seizures Japan// Antiepileptic agent/additional indication: Lennox-Gastaut syndrome Japan// Antiepileptic agent/additional indication: Pediatric epilepsy Japan// Japan/ Antiobesity agent/additional formulation: Obesity once-daily formulation Development Status Phase II Phase III Submission Approved Apr. Sep. Anticancer agent/additional indication: Advanced soft tissue sarcoma (for liposarcoma) May Halaven Injection Anticancer agent/breast cancer China (E7389) Anticancer agent/her2-negative breast cancer (in combination with PEGPH2* 3 ) I/II Anticancer agent/additional indication: Renal cell carcinoma/ May Lenvima Oral Second-line Aug. (E78) Anticancer agent/additional indication: Renal cell carcinoma/first-line / Proton pump inhibitor/additional dosage and administration: Pariet Oral Maintenance therapy for proton pump inhibitor (PPI)-resistant reflux (E381) esophagitis1 mg twice daily* 4 Japan AJG511 Foam Ulcerative colitis treatment/ulcerative colitis* 5 Japan E67 Oral Ulcerative colitis treatment/ulcerative colitis* 6 Japan Humira Fully human anti-tnf- monoclonal antibody/additional indication: Injection (D2E7) Non-infectious uveitis Japan Sep. E611 Injection Anti-Fractalkine antibody/rheumatoid arthritis Japan *1 Joint development with Purdue Pharma L.P. *2 Joint development with Biogen Inc. *3 Co-development with Halozyme Therapeutics, Inc. *4 Joint development with EA Pharma *5 Joint development by EA Pharma and Kissei Pharmaceutical *6 Development conducted by EA Pharma Jul.

5 Topics Contributing to Regional Medicine, Which Provides Peace of Mind and Safety, in the Field of Dementia In April 216, the Company launched the Dementia Solutions Business* 1. In addition to developing new drugs aimed at dementia prevention, cure and care, through this business the Company aims to contribute to regional medicine, which provides peace of mind and safety. The Company will collaborate with leaders in community health care from approximately 65 partners in dementia-related coordination nationwide and provide dementia solutions to local government and local citizens. Our aim will be to contribute to the realization of a society that coexists in harmony with dementia. In July 216, the Company launched an interprofessional collaboration service. Patient care requires close interaction among caregivers and their families, Tag-based IoT* device to provide support when going out Using Smart Mobile Phones in an Interprofessional Collaboration System for Real-Time Patient Information Nurse Hikari One Team SP as well as physicians, nurses, pharmacists and others in a variety of professions. To this end, the Company provides a real-time information-sharing system using mobile information terminals. The Company aims to improve the level of care needed by obtaining advice in this manner from people in a variety of professions. The Company also provides adherence support devices to keep people from forgetting to take their medications, and a tracking tool using a tag-based IoT device* 2 to contribute to the realization of a society where people with dementia can go out safely. *1 Through business, the Company will analyze issues related to dementia and provide countermeasures. *2 These compact radio transmitters provide location information over the Internet. Physician e-okusurisan medication support device Holding Briefings for Individual Shareholders In October 216, the Company held briefings for individual shareholders in Nagoya, Osaka, Fukuoka and Hiroshima. Each year, the Company holds its Ordinary General Meeting of Shareholders in Tokyo. The Company hold these briefings to facilitate communications with individual shareholders outside Tokyo. At each venue, Mr. Okada, the Company s executive vice president in charge of general affairs, provided an overview of the Company s business and management strategies, followed by a question and answer session. The questions were mainly the Company s financial outlook, share price and dividend outlook, the impact of foreign exchange fluctuations on operating performance and the development status of pipelines such as next-generation drugs for Alzheimer s disease. The Company also fielded questions regarding the application to drug discovery of Nobel Prize-winning research (autophagy and ips cells). The Company values its dialogue with shareholders, and plans to continue providing such opportunities for shareholder communication. Realizing a society where people can go out with peace of mind and in safety Performing verification tests in cooperation with MAMORIO, Inc. *lot: Internet of Things Caregivers, family members Care manager Pharmacist Social worker Care worker Contributing to Regional Medicine, Which Provides Peace of Mind and Safety, in the Field of Dementia Keeping people from forgetting to take their medications NTT IT has applied to register a trademark for Hikari One Team SP Briefing for individual shareholders (Nagoya venue) We plan to hold our next briefing for individual investors in October 217. We plan to send out a notice around August 217.