08 05-12 chugai presentation-q1-1

FY2012 2Q Consolidated Financial Overview CHUGAI PHARMACEUTICAL CO., LTD CO LTD. Executive Vice President CFO Yoshio Itaya July 26/27, 2012

FY2012 2Q Consolidated Financial OverviewForward-LookingForward Looking StatementsThis presentation may include forward-looking statementspertaining to the business and prospects of ChugaiPharmaceutical Co., Ltd. (the “Company”). These statementsreflect the Company’s current analysis of existing i f fl t th C ’ t l i f i ti information tiand trends. Actual results may differ from expectations basedon risks and uncertainties th t may affect the Company’s i k d t i ti that ff t th C ’businesses. 2

FY2012 2Q Consolidated Financial OverviewSummary Revenues 185 3 billion JPY (+1 9%) 185.3 (+1.9%) • Tamiflu: approx. 1.8 times higher, reflecting a large flu season • Domestic sales excl. Tamiflu: flat YoY growth as new product sales offset by decline of E ff t b d li f Epogin/HCV product sales and th i i /HCV d t l d the impact of NHI t f price revision • Overseas sales: double-digit growth led by Actemra export • Other operating revenues: approx. 30% decline due to a YoY decrease in one-time income O Operating Income 34.3 billion JPY ( 2 6%) ti I 34 3 billi (-2.6%): • Drop in gross profit associated with an unfavorable product mix outweighed cost containment Net Income 20.9 billion JPY (+22.2%) • Extraordinary loss of 6.5 billion JPY recorded last year due to the q earthquake 3

Year on Year FY2012 2Q Consolidated Financial Overview Financial Overview Jan - Jun (Billion JPY)  Sales excl. Tamiflu 2011 2012 Domestic -0.5 (Billion JPY) Growth Jan-Jun As % of Revenues Jan-Jun As % of Revenues % Overseas +2.2 Revenues 181.9 181 9 185.3 185 3 +3.4 +3 4 +1.9 +1 9  Sales of Tamiflu* Tamiflu +3.5 +3 5 Sales 174.8 180.0 +5.2 +3.0  Other Operating Revenues -1.9 excl. Tamiflu 170.2 171.9 +1.7 +1.0 Decline in one-time income Tamiflu 4.6 8.1 +3.5 +76.1 Other Operating Revenues 7.2 5.3 -1.9 -26.4  Operating Income -0.9 Operating Income 35.2 19.4 34.3 18.5 -0.9 -2.6  Non-operating Inc./Exp. -1.0 Non-operating Income 1.3 1.0 -0.3 -23.1 Non-operating Expenses 0.4 1.0 +0.6 +150.0  Extraordinary Gain/Loss +7.6 Ordinary Income 36.2 19.9 34.3 18.5 -1.9 -5.2 Decline in Extraordinary Loss Extraordinary Gain - 0.0 +0.0 - Loss on disaster -6.5 Extraordinary Loss 7.6 0.0 -7.6 -100.0 Asset retirement obligations -1.0 Net Income 17.1 9.4 20.9 11.3 +3.8 +22.2Average exchange rate (JPY) * Tamiflu 2011 Jan Jun Jan-Jun 2012 Jan Jun Jan-Jun 2011 Jan Jun Jan-Jun 2012 Jan Jun Jan-Jun Growth CHF 90.38 85.82 Ordinary 4.1 7.8 +3.7 EUR 114.86 103.39 Govt. Stockpile etc. 0.5 0.4 -0.1 4

Year on Year FY2012 2Q Consolidated Financial Overview Sales (excl Tamiflu) Jan - Jun (excl. Sales (excl. Tamiflu) (Billion JPY) 171.9 (+1.7, 1 0%) 1 1 9 ( 1 +1.0%) 170.2 Epogin E i Mircera Mi Overseas (7.7) (7.5) 19.3 21.5 -8.9 +7.5 +2.2, +11.4% 16.8 Others 15.0 Neutrogin Actemra -1.8, -10.7% -1.4 ( (overseas)) ( (overseas)) +4.3 11.5 Transplant, Immunology 9.8 98 (6.7) (13.4) and Infectious diseases 22.9 Alfarol Avastin 24.3 -1.7, -14.8% -1.0 (4.4) (29.6) +3.2 Renal diseasesDomesticD ti -1.4, -5.8% Domestic 30.3 Pegasys EdirolSales 30.4 Sales -1.0 (3.4) (2.5) +1.9 Bone and Joint 150.4 150.9 -0.1, -0.3% -0.5, -0.3% Sigmart Rituxan -1.0 +1.3 (4.7) (4 7) (11.7) (11 7) 67.9 Oncology 72.4 +4.5, +6.6% Left : Sales by Disease Field Right : Sales by Product, Variance Year on Year Jan-Jun Jan-Jun ( ): FY2012 Actual 2011 2012 5

FY2012 2Q Consolidated Financial Overview Tamiflu Sales Performance Fiscal Term Sales (Billion JPY) FY2005.12 FY2006.12 FY2007.12 FY2008.12 FY2009.12 FY2010.12 FY2011.12 FY2012.12 C a se s p e r Seasonal se n ti n e l * Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Sales (m i l l i o n s) 2004-05 23.2 24.6 1.47 2005-06 11.9 9.9 21.8 0.92 2006-07 3.7 5.0 8.7 1.01 2007-08 2007 08 5.2 52 1.4 14 6.6 6 6 0.66 0 66 Ordinary 2008-09 5.7 11.0 16.7 1.27 2009-10 25.2 1.4 26.6 2.02 2010-11 0.2 4.1 4.3 1.26 2011-12 1.3 7.8 9.1 1.63 2012-13 1.5 - - Ordinary 35.1 (+26.5) 13.6 (-21.5) 10.2 (-3.4) 7.1 (-3.1) 36.2 (+29.1) 1.6 (-34.6) 5.4 (+3.8) 9.3 (+3.9) 2005-06 0.2 6.5 6.7 2006-07 17.9 18.9 36.8 2007-08 9.6 0.2 9.8 Govt. 2008-09 1.1 14.4 15.5 Stockpile etc. 2009-10 25.6 10.6 36.2 2010-11 5.9 0.5 6.4 2011-12 2.8 0.4 3.2 2012-13 0.0 Go vt. Sto ckp i l e e tc. 0.2 (+0.2) 24.4 (+24.2) 28.5 (+4.1) 1.3 (-27.2) 40.0 (+38.7) 16.6 (-23.4) 3.3 (-13.3) 0.4 (-2.9) 23.2 12.0 16.3 21.6 23.8 14.8 1.6 6.8 25.4 50.8 12.0 6.1 4.6 4.1 8.1 1.5 Total 35.2 35 2 (+26.6) ( ) 38.0 38 0 (+2.8) ( ) 38.7 38 7 (+0.7) ( ) 8.4 8 4 (-30.3) ( ) 76.2 76 2 (+67.8) ( ) 18.2 18 2 (-58.0) ( ) 8.7 8 7 (-9.5) ( ) 9.7 9 7 (+1.0) ( )*Total patients number of the controlled samples in the infectious Diseases Weekly Report, period between late October and mid-April Company forecast(between early July 2009 and mid-March 2010 for 2009/2010), published by Japan’s National Institute of Infectious Diseases. () Year on year 6

Year on Year FY2012 2Q Consolidated Financial Overview Operating Income Jan - Jun(Billion JPY) 2011 2012 (Billion JPY) (Billi Growth G h Jan-Jun Jan-Jun (%) Revenues 181.9 185.3 +3.4 +1.9 Cost of Sales 74.5 81.7 +7.2 +9.7 Gross Profit 107.4 103.5 -3.9 -3.6 Decrease in SG&A Gross profit Sales 100.2 98.3 -1.9 -1.9 (excl. R&D) exp. from Sales Decrease in Other Operating Revenues 7.2 5.3 -1.9 -26.4 Other operating p g R&D exp. exp -1.9 19 revenues SG&A (excl. R&D) exp. 45.3 43.0 -2.3 -5.1 +0.7 R&D exp. 26.9 26.2 -0.7 -2.6 -1.9 +2.3 Operating Income 35.2 34.3 -0.9 -2.6 35.2 34.3  Decrease in Gross Profit from Sales -1.9  Decrease in Other Operating Revenues -1.9 p g Decrease in one-time income -0.9 (-2.6%)  Decrease in SG&A (excl. R&D) exp. +2.3 Cost containmentJan-Jun Jan-Jun 2011 2012  Decrease in R&D exp. +0.7 Completion of late stage projects 7

Year on Year FY2012 2Q Consolidated Financial Overview Financial Overview Apr - Jun (Billion JPY) 2011 2012 (Billion (Billi JPY) Growth G th  Sales excl. Tamiflu -1.1 As % of As % of Apr-Jun Revenues Apr-Jun Revenues %Revenues 96.2 95.0 -1.2 -1.2 Mircera +4.5 Sales 94.4 93.2 -1.2 -1.3 Avastin +2.2 excl. Tamiflu 94.0 92.9 -1.1 -1.2 Edirol +1.3 Tamiflu 0.4 0.3 -0.1 -25.0 Rituxan +0.8 1.8 1.8 +0.0 Epogin -5.3 Other Operating Revenues +0.0 Cost of Sales 39.4 42.1 +2.7 2.7 Neutrogin (overseas) N t i ( ) -1.3 13 +6.9 6.9Gross Profit 56.8 52.9 -3.9 Actemra (overseas) -1.1 59.0 55.7 -6.9 SG&A (excl. R&D) exp. 23.2 22.0 -1.2 -5.2 R&D exp. 13.9 13.2 -0.7 -5.0  Sales of Tamiflu* -0.1Operating Income 19.6 20.4 17.7 18.6 -1.9 -9.7  Other Operating Revenues Non-operating Income 1.2 1.5 +0.3 +25.0 +0.0 Non-operating Expenses 1.4 1.2 -0.2 -14.3Ordinary Income 19.5 19 5 20.3 20 3 18.0 18 0 18.9 18 9 -1.5 15 -7.7 77  Operating Income -1.9 Extraordinary Gain - 0.0 +0.0 - Extraordinary Loss 0.5 0.0 -0.5 -100.0Net Income 12.1 12.6 11.5 12.1 -0.6 -5.0 2011 2012 * Tamiflu Growth Apr-Jun Apr-Jun Ordinary 0.4 0.3 -0.1 Govt. Stockpile etc. - - - 8

vs. Forecast FY2012 2Q Consolidated Financial Overview Financial Overview Jan - Jun Actual Forecast on Feb. 1 (Billion JPY) 2012 2012 Achiev. A hi Jan-Jun Jan-Jun (%) Sales excl. Tamiflu 171.9 181.2 94.9 Oncology 72.4 74.4 97.3 Actual Forecast on Feb. 1 Avastin 29.6 30.7 96.4 29 6 30 7 96 4 (Billion JPY) 2012 2012 Herceptin 13.5 12.7 106.3 Achiev. Rituxan 11.7 11.3 103.5 Jan-Jun Jan-Jun (%) Xeloda 5.2 7.3 71.2Revenues 185.3 185 3 195.5 195 5 94.8 94 8 Tarceva 4.5 3.6 125.0 Bone and Joint 30.3 31.4 96.5 Sales 180.0 189.5 95.0 Actemra 7.9 7.8 101.3 excl. Tamiflu 171.9 181.2 94.9 Evista 7.6 8.0 95.0 Svenyl y 59 5.9 6 8 86 8 6.8 86.8 Tamiflu 8.1 8.3 97.6 Edirol 2.5 2.7 92.6 Other Operating Revenues 5.3 6.0 88.3 Renal 22.9 28.3 80.9 Epogin 7.7 8.7 88.5Operating Income 34.3 36.5 94.0 Mircera 7.5 12.1 62.0Ordinary Income 34.3 37.0 92.7 Transp., Immun., Infectious 9.8 11.9 82.4 Pegasys 3.4 5.6 60.7Net Income 20.9 22.0 95.0 Copegus 1.0 1.2 83.3 Others 15.0 14.8 101.4 Overseas 21.5 20.4 105.4 Actemra 13.4 12.3 108.9 Neutrogin 6.7 6.5 103.1 9

vs. Forecast FY2012 2Q Consolidated Financial Overview Impact from Foreign Exchange FX impacts Jan Jun Jan-Jun FX rate to the JPY 1CHF 1EUR (Billion JPY) (vs. Forecast on Feb. 1) Assumption as of Feb 1 85.00 109.00 (Jan – Dec) -0.3 Actual Jan – Jun avg. 85.82 103.39Revenues Neutrogin (Overseas) -0.3 Actemra (Export) +0.2 Other Operating Revenues -0.2 [Reference] Historical exchange rates to the JPY (Jan-Jun) Cost of sales Cost of Roche products -0.1 JPY EUR 2012 CHF 2012 EUR 2011 CHF 2011 SG&A expenses Overseas SG&A exp., etc. +0.1 125 120 Operating 115 115Income -0.3 110 105 Gain/loss on foreign exchanges Non-operating 100 and exchange forward contracts g Inc./Exp. I /E 95 -0.6 90 Ordinary Income -0.9 85 80 Jan Feb Mar Apr May Jun 10

Actual 2012 FY2012 2Q Consolidated Financial Overview Balance Sheet Items (Assets) (Billion JPY) AccountsCash and receivable  Cash and deposits +22.8depositsMarketable  Marketable securities +10.0 -11.4 Inventoriessecurities -5.6  Accounts receivable -11.4 -1.0 Others +32.8 -6.0 Seasonal change Property, plant and l t d equipment  Inventories -5.6 Assets  Property, plant and equipment 542.2 -1.0 533.5  Others -6.0 +8.7 (+1.6%) Decrease in account receivables - other and deferred tax assets Dec Jun 2011 2012 11

Actual 2012 FY2012 2Q Consolidated Financial Overview Balance Sheet Items (Liabilities)(Billion JPY) Income  Accounts payable +9.4 +9 4 taxes payable Accounts payable Reserves for bonuses  Income taxes payable -4.0 -4.0 to employees and Other reserves Payment of income taxes P fi +9.4 -1.0 -6.2  Reserves for bonuses to employees -0.3 Others  Other reserves -0.8 Liabilities  Others -6.2 74.4 72.8 Decrease in accrued payables and -1.6 (-2.2%) p accrued expenses Equity Ratio Dec. 2011 Jun. 2012 Variance Dec Jun 85.6% 86.2% +0.6%pts 2011 2012 12

Actual 2012 FY2012 2Q Consolidated Financial Overview Cash Flow Statement Jan - Jun (Billion JPY) Investing In esting  Cash flow from operating activities +50.3 +50 3 Operating activities activities Income before taxes and minority interests +34.4 Financing -15.9 activities Depreciation and amortization +7.1 Exchange rate Decrease in working capital +26.4 +26 4 -11.3 changes Decrease in trade notes and accounts receivable +11.5 +50.3 Decrease in inventories +5.5Cash and -0.1 Increase in trade notes and accounts payable +9.4cash h Payments for loss on disaster -1.1equivalents Income taxes paid -13.9  C h fl Cash flow f from investing activities i ti ti iti -15.9 15 9 117.5 Increase in marketable and investment securities 94.5 -8.7 Purchases of noncurrent assets -7 2 7.2 +23.0  Cash flow from financing activities -11.3 Cash dividends paid -10.9 10.9 Dec Jun Cash dividends paid to minority interests 2011 2012 -0.4 13

Overview of Development Pipeline CHUGAI PHARMACEUTICAL CO., LTD. Senior Vice President Head of Project Lifecycle Management Unit Yutaka Tanaka July 26/27, 2012

Overview of Development Pipeline Projects under Development ( off 26 J l 2012) (as Jul. Phase I Phase II Phase III FiledOncology CIF/RG7167 ‐ solid tumors AF802 ‐ NSCLC (PI/II) RG435/Avastin RG1273/pertuzumab CKI27/RG7304 GC33/RG7686 ‐ liver cancer ‐ GC ‐ BC ★ ‐ solid tumors RG340/Xeloda ‐ aGC ★ ‐ aBC RG1415/Tarceva PA799 ‐ solid tumors RG435/Avastin / ‐ glioblastoma g ‐ NSCLC (1st line) ★ ( ) WT4869 ‐ glioblastoma (relapsed) RG1273/pertuzumab ‐ myelodysplastic syndromes ‐ aBC (PI/II) RG3502/ ‐ solid tumors trastuzumab emtansine RG3638/onartuzumab ‐ BC ‐ NSCLC GA101 (RG7159)/ obinutuzumab ‐ NHL Bone & Joint RG484/Bonviva(oral) NRD101/Suvenyl RG484/Bonviva (inj) ‐ osteoporosis ‐ enthesopathy ‐ osteoporosis★Autoimmune SA237 ‐ RA MRA/Actemra (overseas) MRA/Actemra (Japan) RG7415/rontalizumab ‐ RA (sc) ‐ RA (sc) ‐ SLE★CNS RG1450 /gantenerumab RG7090 (mGluR5) RG1678/bitopertin(GlyT1) ‐ alzheimers disease ‐ major depressive disorder ‐ schizophreniaOthers CIM331 CSG452/tofogliflozin ‐ atopic dermatitis★ ‐ diabetes RG3637/lebrikizumab ‐ asthma Letters in orange in-house projects ★: Projects with advances in stages since 24 Apr., 2012 15

Overview of Development PipelineDevelopment Status - Oncology In-licensed RG1273/pertuzumab : HER2 positive breast cancer Filed in May 2012 In- licensed Tarceva : Non-small cell lung cancer (1st line) Filed in Jun 2012 Jun.In-license d Avastin : Adjuvant breast cancer Did not meet primary endpoint in global P3 study 16

Overview of Development PipelineDevelopment Status - OncologyIn-license d Xeloda : Adjuvant g j gastric cancer Started P2 in Jul. 2012 Co-development with Yakult Honsha In- house AF802 (Overseas) : Non small Non-small cell lung cancer Started P1/2 in May 2012 In- I house Actemra : Pancreatic cancer Development suspended Difficulty in clinical evaluation of efficacy and safety 17

Overview of Development PipelineDevelopment Status- Bone & Joint, Autoimmune, Others In-licensed RG484 (injection) : p Osteoporosis Filed in Jul. 2012 Co-development with Taisho Pharma In-licensed RG7415/rontalizumab : Systemic lupus erythematosus Started P1 in Jul. 2012 In- house CIM331 : Atopic dermatitis p Started P1 in Sep. 2011 18

Overview of Development Pipeline Projected Submissions (P t P C products and NME ) (Post PoC d t d NMEsSeamless filings every y g y year NME line extension in-house in-licensed ACTEMRA AVASTIN RA (sc) Glioblastoma SUVENYL TARCEVA (NRD101) AVASTIN NSCLC (1st line) NSCLC (1 BC Adj. BC Adj Enthesopathy pertuzumab tofogliflozin pertuzumab (RG1273) (CSG452) XELODA (RG1273) GC Adj. BC Adj. BC Type 2 Diabetes T DM1 T‐DM1 GLYT1/bitopertin GA101/obinutuzumab BONVIVA* (RG3502) (RG1678) (RG7159) Osteoporosis NHL BC Schizophrenia 2012 2013 2014 2015‐ (Filed) *Overseas brand name 19

Overview of Development Pipeline Rontalizumab - SLE and the Pathophysiology No. of patients: 53,000 Autoimmune diseases with male: female ratio of 1:9 Symptoms: Systemic symptoms, focal symptoms such as skin and joint symptoms, organ disorders Standard treatment: Steroid, Immunosuppresants Symptoms of SLE Systemic Symptoms Hair loss f from front to f Acquire self-responsiveness by q p y  General malaise  Fatigability top of head environmental and genetic factors (Breakdown of self immune tolerance)  Fever Butterfly rash Systemic symptoms Conversion Oral and nasal ulcer Depression Pericardial effusion Renal disorder Auto-antibody production SLE Induce chronic inflammation with Reynauds Skin rash Focal deposition of immune complex of phenomena Joint pain symptoms auto-antibody to various organs y g Edema Purpura Sited from http://www.collagen-disease.com/ Skin rash 20

Overview of Development Pipeline Rontalizumab - SLE and IFN α Mode of Action IFN-α： IFN- drives processes important in pathogenesis of SLE Ann Rheum Dis 2010;69:1603–1611. (modified) ; ( ) Maturation and activation of antigen presentation cells IFN-a Promotion of T cell differentiation Rontalizumab:  Humanized IgG1 mAb Promotion of B cell maturation  Binds to all 12 human IFN-subtypes Promotion of auto-antibody production by plasma Therapeutic Hypothesis: cell  Bl ki IFN may d Blocking IFN- down-regulate processes th t contribute to chronic l t that t ib t t h i inflammation, reduce signs/symptoms of SLE 21

Overview of Development Pipeline Update on the Requests Made by Unapproved Drug Committee Review Committee of development request for Unapproved Drugs/indication  7 out of 8 products (9 out of 10 indications i l di additional d t f d t t f i di ti including dditi l dosages) officially ) ffi i ll requested by MHLW at the 1st round have been approved.  Products remaining from the1st round {(Avastin (OC) and Bactramin)} and products from the 2nd round {Avastin (GBM) and Herceptin (dosage)} are shown below below. Product Indication Current Situation Avastin Ovarian cancer Ovarian cancer Planning Improvement of pulmonary function in 1st round Pulmozyme Launched in June 2012 patients with cystic fibrosis requests Prevention & treatment of pneumocystis i & f i Bactramin Filed on 13 Feb. 2012 pneumonia Avastin Recurrent glioblastoma Study on‐going 2nd round NDA based on evidence requests Weekly dosage with chemo‐therapy for Herceptin in the public domain: HER2 + adjuvant breast cancer Under assessment Letters in red: Projects with change in status since Feb. 1, 2012 22

Contacts: Corporate Communications Dept.Corporate Communications GroupTel: +81 (0)3 3273 0881 Fax: +81 (0)3 3281 6607 81 (0)3-3273-0881 81 (0)3-3281-6607e-mail: pr@chugai-pharm.co.jpHitoshi Aikawa, Koichi Kawahara, Kae Miyata, Hiroshi ArakiInvestor Relations GroupTel:T l +81 (0)3 3273 0554 Fax: +81 (0)3-3281-6607 (0)3-3273-0554 F (0)3 3281 6607e-mail: ir@chugai-pharm.co.jpMac Uchida, Yusuke Tokita, Chisato Kitamura, Yuka Minoshima , , ,

08 05-12 chugai presentation-q1-1

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