(Figures are rounded down to the nearest million yen) 1. Consolidated Performance for the nine months ended December 31, 2013

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1 [ Disclaimer: The following is meant to be an accurate translation from the original Financial Report of Santen Pharmaceutical Co., Ltd., written in Japanese, and is prepared for the information disclosure to the Tokyo Stock Exchange. However, in the case of any discrepancy between the English translation and the Japanese original, the latter shall prevail. ] Feburuary 4, 2014 SANTEN PHARMACEUTICAL CO., LTD. Code: 4536 URL Third Quarter Financial Results for the Fiscal Year Ending March 31, 2014 [Japan GAAP] (Consolidated) Akira Kurokawa, President and Chief Executive Officer Contact: Takashi Hibi, General Manager, Corporate Communication Group Tel: ir@santen.co.jp (Figures are rounded down to the nearest million yen) 1. Consolidated Performance for the nine months ended (1) Operating results (Percentage figures represent changes from same period of previous year.) % change Net sales (millions of yen) 108,946 88, % Operating income (millions of yen) 23,633 20, % Ordinary income (millions of yen) 24,297 21, % Net income (millions of yen) 15,376 14, % Net income per share (yen) Diluted net income per share (yen) Note: Comprehensive income: Third quarter ended : \ 22,656million(62.9%) Third quarter ended : \ 13,910 million((0.2%)) (2) Financial condition March 31, 2013 Total assets (millions of yen) 218, ,640 Net assets (millions of yen) 178, ,132 Equity ratio 81.4% 82.6% Net assets per share (yen) 2, , Reference: Equity (Consolidated): Third quarter ended : \ 178,005 million Fiscal year ended March 31, 2013: \ 164,808 million 2. Dividends Year to March 2014 (Forecasts) Year to March 2014 Year to March 2013 First quarter dividends per share (yen) Second quarter dividends per share (yen) Third quarter dividends per share (yen) End-of-period dividends per share (yen) Annual dividends per share (yen) Consolidated Forecasts of results for the year ending March 31, 2014 (Percentage figures represent changes from same period of previous year.) (Full year) Full year % change Net sales (millions of yen) 149, % Operating income (millions of yen) 26, % Ordinary income (millions of yen) 27, % Net income (millions of yen) 17, % Net income per share (yen)

2 *Notes (1) (2) (3) (4) Significant change in subsidiaries during the term (change in designated subsidiaries resulting in adjustment to the scope of consolidation): No Note: Two companies, Santen Pharmaceutical Sales &Marketing(Suzhou) Co.,Ltd. and Santen Pharmaceutical Asia Pte.Ltd., have newly become our consolidated subsidiaries. Application of special accounting method in the preparation of quarterly consolidated financial statements: No Changes in accounting policies, accounting estimates and restatements [ i ] Changes in the accounting policies resulting from amendments to accounting standards: No [ ii ] Changes other than [ i ] above: Yes -Change in depreciation method for property, plant and equipment The Company and its domestic subsidiary have changed depreciation method for property, plant and equipment from the declining-balance method (however, straight-line method was applied to buildings (other than leasehold improvements) acquired on or after April 1, 1998) to the straight-line method, from the first quarter of the current fiscal year. As a result of this change, the major effects on the company's consolidated financial statements for the nine months ended are as follows: Depreciation and amortization decreased by \535 million; Operating income increased by \409 million; and Ordinary income and income before income taxes increased by \417 million each. -Application of Accounting standards and relevant regulations The ''Accounting Standard for Retirement Benefits''(ASBJ Statement No.26, May 17, 2012) The ''Guidance on Accounting Standard for Retirement Benefits''(ASBJ Guidance No.25, May 17, 2012) The Company and its subsidiaries applied the accounting standard and relevant regulations from the beginning of this fiscal year. As a result of this application, accumulated other comprehensive income decreased by \1,713 million and retained earnings increased by \227 million at the beginning of this fiscal year. There are no material effects on the company s operating results for the nine months ended December 31, [ iii ] Changes in the accounting estimates: Yes [ iv ] Restatements: No Number of shares outstanding (common stock) [ i ] Number of shares outstanding at the end of period (including treasury stock) : 82,547,303 March 31, 2013 : 82,469,103 [ ii ] Number of treasury stock at the end of period : 2,119 March 31, 2013 : 900 [ iii ] Average number of outstanding shares (during the nine months ended December 31) Third quarter ended : 82,526,637 Third quarter ended : 84,999,207 (Information regarding the implementation of quarterly review procedures) These quarterly financial results are not subject to quarterly review procedures. Thus, at the time of disclosure of these financial results, the quarterly consolidated financial statement review procedures based on the Financial Instruments and Exchange Law, are in progress. (Caution) Forecasts in this report are based on the currently available information. Actual results may differ materially depending on a number of factors including adverse economic conditions, delays in new products launch, currency exchange rate, legislative and regulatory developments.

3 Quarterly consolidated balance sheets Assets Current assets Cash and deposits 50,884 54,625 Notes and accounts receivable-trade 43,840 52,684 Short-term investment securities 11,007 12,410 Merchandise and finishied goods 16,703 14,014 Work in process Raw materials and supplies 3,620 3,727 Deffered tax assets 1,880 1,432 Other 4,022 4,369 Allowance for doubtful receivables (1) (2) Total current assets 132, ,802 Non-current assets Property, plant and equipment Buildings and structures 42,807 44,755 Accumulated depreciation and impairment loss March 31, 2013 (29,379) (30,554) Buildings and structures, net 13,427 14,200 Machinery, equipment and vehicles 11,920 13,347 Accumulated depreciation and impairment loss (10,336) (10,998) Machinery, equipment and vehicles, net 1,584 2,348 Land 8,240 8,269 Lease assets Accumulated depreciation and impairment loss (93) (135) Lease assets, net Construction in progress 2,454 1,112 Other 11,833 12,660 Accumulated depreciation and impairment loss (10,278) (10,622) Other, net 1,554 2,038 Total property, plant and equipment 27,420 28,118 Intangible assets Goodwill 5,936 6,252 In-process research and development 6,767 7,780 Software 1,150 1,242 Other Total intangible assets 14,123 15,636 Investments and other assets Investment securities 18,173 23,601 Deferred tax assets 4,460 4,241 Other 2,879 3,350 Total investments and other assets 25,513 31,193 Total non-current assets 67,057 74,948 Total assets 199, ,750

4 March 31, 2013 Liabilities Current liabilities Notes and accounts payable -trade 9,266 10,915 Other payables 9,868 9,086 Income taxes payable 3,038 4,611 Provision for bonuses 3,085 1,961 Provision for sales returns Other 1,647 2,848 Total current liabilities 27,011 29,556 Non-current liabilities Lease obligations Deferred tax liabilities 2,269 2,606 Retirement and severance benefits for employee Retirement and severance benefits for directors 3, Net defined benefit liability - 5,888 Provision for business structure improvement Asset retirement obligations Other 1,066 1,207 Total non-current liabilities 7,496 10,776 Total liabilities 34,507 40,332 Net assets Shareholders' equity Common stock 7,080 7,209 Capital surplus 7,775 7,903 Retained earnings 151, ,382 Treasury stock, at cost (2) (8) Total shareholders' equity 165, ,487 Accumulated other comprehensive income Unrealized losses on securities, net of taxes Foreign currency translation adjustments Remeasurements of defined benefit plans Total accumulated other comprehensive income(loss) 1,920 4,460 (2,967) 1,623 - (1,565) (1,047) 4,518 Stock subscription rights Total net assets 165, ,417 Total liabilities and net assets 199, ,750

5 Quarterly consolidated statements of income and comprehensive income Net sales 88, ,946 Cost of sales 29,755 42,751 Gross profit 58,669 66,374 Selling, general and administrative expenses 38,096 42,740 Operating income 20,572 23,633 Non-operating income Interest income Dividend income Other Total non-operating income Non-operating expenses Interest expenses 3 5 Exchange losses Depreciation and amortization - 85 Other Total non-operating expenses Ordinary income 21,269 24,297 Extraordinary income Gain on sales of fixed assets 16 - Gain on sales of investment securities Total extraordinary income Extraordinary loss Loss on disposal of non-current assets 9 17 Loss on valuation of right of using facilities - 1 Business structure improvement expenses Total extraordinary losses Income before income taxes 21,276 23,871 Income taxes - current 5,875 8,328 Income taxes - deferred 1, Total income taxes 7,140 8,495 Income before minority interests 14,136 15,376 Net income 14,136 15,376 Income before minority interests 14,136 15,376 Other comprehensive income Unrealized gains(losses) on securities, net of taxes (157) 2,540 Foreign currency translation adjustments (67) 4,590 Remeasurements of defined benefit plans Other comprehensive income (225) 7,279 Total comprehensive income 13,910 22,656 Total comprehensive income attributable to : Owners of the parent 13,910 22,656 Minority interests - -

6 Quarterly consolidated statements of cash flows Cash flows from operating activities: Income before income taxes 21,276 23,871 Depreciation and amortization 1,920 2,060 Amortization of goodwill Loss (gain) on sales of investment securities - (473) Business structure improvement expenses Increase (decrease) in retirement and severance benefits Increase (decrease) in net defined benefit liability Interest and dividend income - (491) 131 (561) Interest expenses 3 5 Decrease (increase) in notes and accounts receivable-trade (4,235) (8,330) Decrease (increase) in inventories 13 3,283 Increase (decrease) in notes and accounts payable-trade (544) 1,572 Other, net (2,561) (578) Subtotal 15,961 22,446 Interest and dividend income received Interest expenses paid (1) (2) Income taxes paid (10,255) (6,973) Net cash provided by (used in) operating activities 6,206 16,038 Cash flows from investing activities: Increase in fixed deposits (464) (67) Proceeds from withdrawal of fixed deposits Purchase of short-term investment securities (301) (604) Proceeds from sales and redemption of short-term investment securities 2,136 1,906 Purchase of non-current assets (2,283) (3,548) Proceeds from sales of fixed assets 30 2 Purchase of investment securities (3,027) (4,218) Proceeds from sales of investment securities Other 0 3 Net cash provided by (used in) investing activities (3,321) (5,946) Cash flows from financing activities: Purchase of treasury stock (13,763) (5) Dividends paid (8,369) (8,146) Other, net Net cash Provided by (used in) financing activities (21,863) (7,926) Effect of exchange rate changes on cash and cash equivalents 174 1,566 Net increase (decrease) in cash and cash equivalents (18,803) 3,732 Cash and cash equivalents at beginning of period 75,035 59,797 Cash and cash equivalents at end of period 56,231 63,529

7 Segment information 1. <Reporting segment> Pharmaceuticals Other (Note) Adjustments Consolidated total Net sales: External customers 86,811 1,614-88,425 Intersegment - 86 (86) - Total 86,811 1,700 (86) 88,425 Segment income(loss) 21,003 (430) - 20,572 Note: "Other" segment mainly includes medical equipment. 2.(1) <Reporting segment> Pharmaceuticals Other (Note) Adjustments Consolidated total Net sales: External customers 106,821 2, ,946 Intersegment - 93 (93) - Total 106,821 2,218 (93) 108,946 Segment income(loss) 23,996 (363) - 23,633 Note: "Other" segment mainly includes medical equipment. (2)Change in depreciation method for property, plant and equipment The Company and its domestic subsidiary have changed depreciation method for property, plant and equipment from the declining-balance method (however, straight-line method for buildings (other than leasehold improvements) acquired on or after April 1, 1998) to the straight-line method from the first quarter of the current fiscal year. As a result of this change, segment income of ''Pharmaceuticals'' segment increased by \408 million for the nine months ended. There are no material effects on ''Other'' segment.

8 <Reference> Sales of major pharmaceuticals Brand name Generic name/formulation Therapeutic category Year ended March 31, 2013 Year ending March 31, 2014 Actual Actual Actual Forecasts Cravit Bacterial 8,681 10,857 9,396 12,806 conjunctivitis levofloxacin/ophthalmic solution ( (13.7) % ( (12.2) % ( 8.2 % ( 18.0 % Tarivid Bacterial 1,464 1,830 1,485 1,979 conjunctivitis ofloxacin/ophthalmic solution ( (6.4) % ( (5.3) % ( 1.4 % ( 8.1 % Tapros Glaucoma 6,113 7,872 6,974 8,929 tafluprost/ophthalmic solution ( 8.8 % ( 7.1 % ( 14.1 % ( 13.4 % Cosopt Glaucoma 6,797 9,006 9,226 11,800 Dorzolamide hydrochloride/ timolol maleate Ophthalmic Solution ( 46.8 % ( 43.6 % ( 35.7 % ( 31.0 % Timoptol Glaucoma 1,096 1, ,159 timolol maleate/ophthalmic solution ( (20.2) % ( (19.7) % ( (13.6) % ( (15.2) % Timoptol XE Glaucoma 1,653 2,085 1,541 1,923 timotol maleate/ long-acting ophthalmic solution ( (14.0) % ( (13.3) % ( (6.8) % ( (7.8) % Detantol Glaucoma 1,402 1,734 1,188 1,304 bunazosin hydrochloride ( (9.3) % ( (11.9) % ( (15.2) % ( (24.8) % Rescula Glaucoma 1,781 2,243 1,687 2,187 isopropyl unoprostone ( (10.0) % ( (9.3) % ( (5.3) % ( (2.5) % Alesion Allergy ,907 epinastine HCI/ ophthalmic solution ( - % ( - % ( - % ( - % Livostin Allergy 1,827 4,036 1,371 2,318 levocabastine hydrochloride/ ophthalmic solution ( (1.3) % ( 20.6 % ( (24.9) % ( (42.6) % Hyalein Corneal 16,745 21,159 16,596 21,722 sodium hyaluronate/ophthalmic disease solution ( (3.4) % ( (4.8) % ( (0.9) % ( 2.7 % Diquas Corneal 4,037 5,563 5,732 7,986 diquafosol sodium/ophthalmic disease solution ( % ( 95.5 % ( 42.0 % ( 43.6 % Flumetholon Inflammation 3,008 4,447 2,853 3,828 fluorometholone/ophthalmic solution ( (0.9) % ( 9.2 % ( (5.2) % ( (13.9) % Kary Uni Early-stage 2,973 3,765 3,008 4,108 senile cataract pirenoxine/ophthalmic solution ( 1.7 % ( 2.1 % ( 1.2 % ( 9.1 % Opegan Hi Adjuvant for 2,236 2,842 2,242 3,001 ophthalmic sodium hyaluronate/ operations adjuvant for ophthalmic operations ( (5.6) % ( (5.8) % ( 0.3 % ( 5.6 % Eylea VEGF Trap-Eye 654 3,183 13,327 17,249 aflibercept/intravitreal injection ( - % ( - % ( 1,935.0 % ( % Rimatil Rheumatoid 2,587 3,253 2,482 3,057 arthritis bucillamine/tablet ( (11.2) % ( (11.4) % ( (4.1) % ( (6.0) % Azulfidine EN Rheumatoid 2,960 3,767 2,989 3,568 salazosulfapyridine/enteric coated arthritis tablet ( (6.7) % ( (6.5) % ( 1.0 % ( (5.3) % Metolate Rheumatoid 1,565 2,040 1,863 2,590 methotrexate/tablet arthritis ( 21.1 % ( 19.6 % ( 19.0 % ( 27.0 % OTC pharmaceuticals ,474 4,951 6, % 40.8 % (4.7) % 0.6 % lower:year on year percentage change Percentages in parentheses indicate a decrease. *Forecasts in this report are based on the currently available information. Actual results may differ materially depending on a number of factors including adverse economic conditions, etc.

9 Reference information Pipeline of prescription pharmaceuticals (Clinical Stage) Glaucoma/ Co-development Asia Mar-10 Tafluprost DE-085 Ocular hypertension with Asahi Glass China Jan-11 A prostaglandin F 2α derivative for the treatment of glaucoma and ocular hypertension. Launched in Japan in December, In Europe, launched in Germany, Denmark, etc. In the countries including the U.S., development rights were granted to Merck & Co., Inc. (U.S.) in April, In Asia, launched in Hong Kong, Korea, Indonesia, Singapore, etc. NDA filed in China. Korea Oct-13 Diquafosol sodium DE-089 Dry eye Inspire (Merck) China Jan-12 A dry eye treatment drug which stimulates secretion of mucin and aqueous components from the corneal epithelium. Its mechanism of action is different from other existing treatments. Launched in December, 2010 in Japan and in October, 2013 in Korea. NDA filed in China. Lomerizine HCl DE-090 Glaucoma MSD Japan A new type of glaucoma treatment which inhibits the progression of visual field defects. It is the only calcium antagonist being development as an oral glaucoma treatment. Compared to NMDA receptor antagonists, it has excellent safety profile with mild systemic adverse drug reactions. Betamethasone DE-102 Macular edema secondary to diabetes and BRVO* Co-development with Oakwood Japan (Phase 2/3) A microsphere product with a new drug delivery concept. Stable and sustained efficacy is expected with a local injection. Collaborating with Oakwood Laboratories (U.S.) for manufacturing technology development on commercial scale. *BRVO: Branch retinal vein occlusion. Sirolimus DE-109 Uveitis Original U.S. Japan Europe An intravitreal injection with immunosuppressive effect, anti-angiogenic effect, etc. Phase 3 study is ongoing in the U.S., Japan and Europe. Co-development Japan Sept-13 DE-111 with Asahi Glass Tafluprost/ Timolol maleate Glaucoma/ Ocular hypertension Co-development Europe A fixed dose combination drug of a prostaglandin F 2α derivative and a beta-adrenergic receptor blocker. NDA filed in June, 2013 in Europe. Approved in September, 2013 in Japan. Epinastine HCl DE-114 Allergic conjunctivitis Nippon Boehringer Ingelheim An H₁ receptor antagonist with membrane-stabilizing function, as treatment for allergic conjunctivitis. Launched in November, 2013 in Japan. Japan June-13 Nov-13 (Undetermined) DE-117 Glaucoma/ Ocular hypertension EP2 receptor agonist with a new mechanism of action. Preparation of Phase 2b in the U.S. Co-development with Ube Industries U.S. Phase 2b prep

10 Reference information Pipeline of prescription pharmaceuticals (Clinical Stage) Tafluprost DE-118 Glaucoma/ Ocular hypertension Co-development with Asahi Glass A prostaglandin F 2α derivative for the treatment of glaucoma and ocular hypertension. Preservative-free, unit-dose type product. Launched in October, 2013 in Japan. Japan Oct-13 (Undetermined) DE-120 Wet Age-related macular degeneration Original An intravitreal injection with dual inhibitor of VEGF and PDGF. Started on Phase 1/2a in January, 2014 in U.S. U.S. (Phase 1/2a) (Undetermined) DE-098 (Anti-APO-1 antibody) Rheumatoid arthritis Janssen Biotech Japan A joint injection inducing apoptosis in diseased joints of rheumatoid arthritis patients. Next development plan is under evaluation based on Phase 2 study results. Santen S.A.S. pipeline of prescription pharmaceuticals (Clinical Stage) Generic name Dev. name Indication Original/Licensor Region P1 P2 P3 NDA Filed Approved Launched Europe Dec-2013 Severe dry eye Original Ciclosporin Cyclokat U.S. An ophthalmic emulsion which improves symptoms and signs of severe dry eye by immunosuppressive effect. Cationic emulsion technology has enhanced ocular tissue absorption. Vernal Keratoconjunctivitis Original Europe Ciclosporin Vekacia An ophthalmic emulsion which improves symptoms of vernal keratoconjunctivitis by immunosuppressive effect. Cationic emulsion technology has enhanced ocular tissue absorption. Glaucoma/ Latanoprost Catioprost Ocular hypertension Original Europe An ophthalmic emulsion of a prostaglandin F 2α derivative, for the treatment of glaucoma and ocular hypertension. Dexamethasone Palmitate Cortiject *Catioprost and Cortiject are under project evaluation. Diabetic macular edema Original U.S. An intravitreal injection with anti-inflammatory effect. (Phase 1/2) Changes from 2Q FY13 (November 6, 2013) Dev. Code / name DE-114 Cyclokat DE-117 DE-120 DE-105 Changes Launched as Alesion Ophthalmic Solution in November, 2013 (Japan) Filed in December, 2013 (Europe) Preparation of Phase 2b in the U.S. Started on Phase 1/2a in January, 2014 (U.S.) Discontinued due to business strategy

11 Capital expenditures Year ended March 31, 2013 Year ending March 31, 2014 Actual Actual Actual Forecasts Capital expenditures 2,594 4,202 2,083 3,400 Depreciation and amortization Consolidated total 1,835 2,530 1,830 2,500 Manufacturing cost 884 1, ,220 Selling, general and administrative expenses Year ended March 31, 2013 Year ending March 31, 2014 Actual Actual Actual Forecasts R&D expenses R&D expenses Year ended March 31, 2013 Year ending March 31, 2014 Actual Actual Actual Forecasts R&D expenses 12,099 16,719 12,498 19,500 Net sales ratio 13.7% 14.0% 11.5% 13.1% *Forecasts in this report are based on the currently available information. Actual results may differ materially depending on a number of factors including adverse economic conditions, etc.