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1 Looking ahead

2 80% No

3 / ,696 89, % $ 863, ,982 14, , ,023 6, , ,620 11, , ,907 3, , ,750 4, , % $ , ,238 (6.8)% $1,303, , , ,007,913 ROE % 6.3%... 2,308 2, , Santen Annual Report 2005

4 Santen Annual Report 2005

5 % % % % JJVCI JJVCI 2002 MR Santen Annual Report 2005

6 4 Santen Annual Report % % % 125ROE 10% MR SAIN 2 DE-085 DE-092 DE-089 DE-096 DE SIP 1 3

7 Maximizing Growth Potential Santen Annual Report 2005

8 ROE19% 1, ,000 1, BPR 3 6 Santen Annual Report 2005

9 JJVCI IT BPR BPR BPR 7 Santen Annual Report 2005

10 8 Santen Annual Report 2005 APO Argenes ROE 10.4% 10% ROE CFO ROA 35 36% 30% 20% DE-085 DE-092 JJVCI

11 For the Future Santen Annual Report 2005

12 10 Santen Annual Report 2005 QOL SMO Site Management Organization DE EBM DE

13 DE TNFDE DE-085 DE Santen Annual Report 2005

14 % DE-076 DE-085 DE-092 DE-090 DE DE-094 A DE-096 DE PG PG PG TNF 12 Santen Annual Report 2005

15 % 5.7% 9.0% 2.9% % 400 MR 39.6% 1 1 DMARDs EN 42.9% 1 1 FX 40 20% DMARDs IMS Copyright IMS Japan KK, Santen Annual Report 2005

16 2,500 2,000 1,500 1, Copyright IMS Japan KK IMS % 3.3% 5.6% 6.5% 13.7% 36.1% 12.7% 11.1% Copyright IMS Japan KK IMS % SAIN 9.0% Santen Annual Report 2005

17 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, ,000 14,000 12,000 10,000 8,000 6,000 4,000 2, % QOL 6.1% Santen Annual Report 2005

18 20,000 15,000 10,000 5, % 80% 1.5% % % ,000 10,000 8,000 6,000 4,000 2, % 4.5% XE % % QOL Santen Annual Report 2005

19 7,000 6,000 5,000 4,000 3,000 2,000 1, % 80.2% % % % , Santen Annual Report 2005

20 14, % ,000 10,000 8,000 6,000 4,000 2, AAO 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, JJVCI 3 JJVCI 70.7% JJVCI JJVCI 3 QOL Santen Annual Report 2005

21 5 12% EU ESCRS % DE Santen Annual Report 2005

22 % Santen Annual Report 2005

23 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, DMARDs 5% TNF EN DMARDs DMARDs QOL EN A EN 4.8% EN 3 DMARDs DMARDs EN Santen Annual Report 2005

24 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 FX % FX CM 1,400 1,200 1, MR 3, % % 7 55 AVS :MD Santen Annual Report 2005

25 23 Santen Annual Report 2005 NPO ISO14001 ISO

26 , Santen Annual Report 2005

27 25 Santen Annual Report * e

28 Santen Annual Report 2005

29 Santen Annual Report 2005

30 % ,000 80,000 60,000 40,000 20, % ,298 80, ,625 71, ,353 7, (7.9) 5,277 4, (17.5) 2,366 4,210 (43.8) 92,696 89, % ,000 32, %72 41 DMARDs % % ,000 16,000 8, % % 36.4% % Santen Annual Report 2005

31 15,000 12,000 9,000 6,000 3, % % EPS 1 EPS 20,000 12, ,000 12,000 8,000 4,000 10,000 8,000 6,000 4,000 2, % % 20.5% % % % % % 11.9% EPS Santen Annual Report 2005

32 ROA 180,000 ROA , , ,000 90, ,000 45,000 30, , , , % 1, % % 60.7% 59.1% % ROA 4.3% 7.6% % % % % % % % % Santen Annual Report 2005

33 ROE ROE 120, ,000 80, % , ,000 20, %1, % 77 3% 8.4 ROE 6.3% 10.4% % ,619 23,196 (16,577) (2,907) 5,246 8,223 (12,712) (12,122) (590) 32,381 41,423 (9,042) % , % Santen Annual Report 2005

34 32 Santen Annual Report % 3.2% PL % FDA

35 33 Santen Annual Report 2005 XE EN PL

36 ,696 89,858 90,253 88, ,710 31,859 32,272 32, ,004 43,475 45,284 44, ,982 14,524 12,697 11, ,436 13,775 9,947 12, ,413 7,454 1,444 7, ,023 6,321 8,503 5, ,907 3,226 7,046 6, ,750 4,521 4,311 5, ,620 11,853 12,719 12, BPS... 1, , , , ,619 23,196 15,808 6, (2,907) 5,246 (9,951) (6,374)... (12,712) (12,122) (6,507) (5,684) ,735 91,231 83,431 86, ,676 37,237 40,850 42, , , , , ,882 12,686 23,047 24, , ,500 97,126 95,101 ROE % ROA % % % PER ,659 87,963 90,704 90, ,308 2,335 2,500 2, Santen Annual Report 2005

37 ,449 83,577 79,639 77,957 75,216 $ 863,175 33,385 32,195 32,746 31,278 27, ,903 38,546 33,894 30,294 30,535 27, ,511 16,518 17,488 16,599 16,144 19, , ,698 15,521 14,422 15,969 14,917 18, ,678 7,807 6,481 7,864 7,594 9,915 69,036 7,714 7,941 8,105 7,323 8, ,642 4,943 2,510 3,443 5,898 16,725 45,690 5,683 5,725 6,314 6,674 4,202 44,229 10,511 9,221 7,335 7,731 6, , $ , , ,832 9,372 16,339 11,535 16,181 $ 61,637 (3,172) 837 (8,305) (9,537) (28,259) (27,071) (7,193) (3,817) (3,857) (1,677) 18,610 (118,372) ,025 82,218 78,018 70,892 69,065 $ 770,417 36,684 37,416 39,638 43,425 47, , , , , , ,226 1,303,472 25,482 26,491 27,496 31,168 31,807 64,085 94,834 95,669 88,950 81,998 75,759 1,007, ,721 95,075 95,075 95,075 86,410 2,167 2,093 2,037 2,010 1, Santen Annual Report 2005

38 ,381 41,423 $ 301, ,010 8, , ,227 31, , (18) (16) (168)... 35,607 32, , ,827 10,394 91, ,625 2,256 15, ,381 2,708 22, ,735 91, , ,487 10,646 88, ,257 41, , ,036 11, , ,609 10,588 98, ,751 1, ,571 75, , (38,895) (38,429) (362,186)... 32,676 37, , ,314 11, , ,015 1,324 9, ,303 2,677 21, ,052 1,814 9, ,885 4,472 54, ,569 21, , , ,238 $1,303, Santen Annual Report 2005

39 $ 2, ,123 5,040 57, ,578 8,854 79, ,214 3,409 29, ,414 8,133 31, ,302 5, ,222 27, , ,614 12,270 61, ,858 5,773 17, ,023 1,514 9, ,518 19,584 88, ,493, ,844,454 86,658, ,963, ,248 6,214 58, ,943 6,909 64, ,902 91, , ,049 1,426 19, (2,827) (2,854) (26,321) 108, ,540 1,008, , , (75) (40) (694) , ,500 1,007, , ,238 $1,303, Santen Annual Report 2005

40 ,696 89,858 90,253 $863, ,710 31,859 32, , ,986 57,999 57, , ,004 43,475 45, , ,982 14,524 12, , , ,712 1, (182) (366) (480) (1,698) , , , (823) (377) (7,665)... (51) (201) (602) (474)... (2,203)... (719)... (855)... (441) (386) (4,104)... (281) (477) 265 (2,621)... 18,436 13,775 9, , ,447 8, , (1,297) 981 9,003 7,413 7,454 1,444 69, ,023 6,321 8,503 $102, $ Santen Annual Report 2005

41 ,214 6,214 6,214 $ 57, ,248 6,214 6,214 $ 58, ,909 6,909 6,909 $ 64, ,943 6,909 6,909 $ 64, ,845 90,552 83,893 $ 855, ,023 6,321 8, , (4,397) (1,758) (1,814) (40,942)... (21) (30) (30) (196)... (2,548) (3,240) (23,728)... 95,902 91,845 90,552 $ 893, , $ 13, ,132 (180) 5, ,049 1, $ 19, (2,854) (3,566) (2,383) $ (26,575) (1,183) (2,827) (2,854) (3,566) $ (26,321) (40) (3,277) (6) $ (374)... (2,583) (3) (3,271) (24,048)... 2,548 3,240 23, (75) (40) (3,277) $ (694) 39 Santen Annual Report 2005

42 ,436 13,775 9,947 $ 171, ,750 4,521 4,311 44, , (2,551) (23,754)... (249) (240) (268) (2,320)... (114) (1,712) (1,066) , (3,082) (315) 6,966 (28,701) , , ,066 (441) 660 9, (2,263) 1,046 (753) (21,068)... 17,593 18,762 22, , , (183) (329) (458) (1,706) ,003 1, (11,236) (453) (5,997) (104,623)... 1, ,619 23,196 15,808 61, (4,907) (3,226) (7,046) (45,690)... (3,230) (511) (3,704) (30,075)... 1,059 1, , ,488 3,770 23, (6,048) (7,022) (5,252) (56,315)... 7,722 11,520 4,854 71, (359) (2,907) 5,246 (9,951) (27,071)... 10, (5,804) (416) (1,421) (54,046)... (19,945) (2,583) (3) (3,274) (24,048)... (4,393) (1,758) (1,812) (40,911) (12,712) (12,122) (6,507) (118,372)... (42) (392)... (9,042) 16,369 (566) (84,198)... 41,423 25,054 25, , ,381 41,423 25,054 $ 301, Santen Annual Report 2005

43 1 2 1) 2) 3) 4 1 4) 5 5) 6) 6 7) 41 Santen Annual Report 2005

44 ) 10 9) 7 10) 8 11) ) 13) ) ,39087,93190, Santen Annual Report 2005

45 ,485 87,94299, ) 14 16) 3 17) , ,012 1, (1) 1, ,789 3,576 (114) 12,251 6,058 2,525 (58) 8, (81) 875 8,789 3,576 (114) 12,251 7,005 2,534 (139) 9, $ 9,312 $ 115 $ $ 9, $81,838 $33,302 $(1,061) $114, $81,838 $33,302 $(1,061) $114, Santen Annual Report 2005

46 ,500 7,500 $69,838 $ ,000 1, , ,505 9,005 1,150 $79,197 $ , ,295 2,011 $21, ,159 5,462 48, , ,519 1,984 14,146 9,827 10,394 $91, Santen Annual Report 2005

47 ,318 13,280 $133, ,751 10, , ,567 3,279 33, , , , ,941 13, , ,049 10, , ,892 3,689 $ 36, $ 8, ,045 2,980 28,356 4,008 3,790 $ 37, $ 9, $ 8, $ $ , $ 2, Santen Annual Report 2005

48 , , %... 5,000 10,000 $ 46, % % 4.75%... 1,882 2,350 17, ,882 12,686 64, (268) (416) (2,496) 6,614 12,270 $ 61, $ 2, , , ,368 49, , , ,882 $ 64, Santen Annual Report 2005

49 (10,053) (12,140) $ (93,617)... 7,694 5,512 71, (2,359) (6,628) (21,973) ,296 8, (403) (441) (3,749)... (1,858) (5,773) $ (17,301) 2,891 26,9212,574 23, , % , $ 8, , (103) (92) (142) (958) , , (316) (2,946) , ,841 1,381 1,281 $17, $ % 2.00% 2.00% % 2.00% 3.00% Santen Annual Report 2005

50 11 50% 10% 25% 25% ,55114,447 1, ,59924, ,302896,749 84, , ,357,407 2,58324,048 1,351,1002,54823, ,000 2, ,000 1, ,000 2, ,600 1, ,600 1,760 $ ,200 1, (46,500) (1,450) (13.50) ,300 1,786 $ , ,620(117,511) 11,85312, Santen Annual Report 2005

51 % 42.0%42.0% % 42.0 % 42.0 % (5.7) (8.3) (49.3) % 54.1 % 14.5 % ,657 5,715 $ 52, ,798 1,844 16, ,044 1,290 9, , , , , , , , ,195 12, , (6,921) (6,975) (64,447)... 4,274 5,298 39, (1,391) (1,026) (12,953)... (206) (202) (1,918)... (23) (27) (222)... (1,620) (1,255) (15,093)... 2,654 4,043 $ 24, Santen Annual Report 2005

52 ,625 2,256 $ 15, ,052 1,814 9, (23) (27) (218)... 2,654 4,043 $ 24, , Santen Annual Report 2005

53 ,837 79,338 81,858 $ 799, , , ,386 80,356 82, , ,375 8,849 6,643 59, ,624 1, , ,999 10,005 7,626 74, ,671 1,752 4, ,570 6,036 7,648 23, ,054 7,707 9,400 28, (4,743) (8,210) (9,291) (44,169)... 92,696 89,858 90,253 $ 863, ,169 20,351 20,652 $ 206, (150) (2,599) (3,816) (1,389)... (743) (550) (1,083) (6,927)... (2,294) (2,678) (3,056) (21,365)... 18,982 14,524 12,697 $ 176, , , ,750 $1,145, ,604 11,669 9,865 80, ,155 6,016 7,030 47, ,154 (238) , , , ,148 $1,303, ,794 4,370 3,506 $ 44, ,704 5,814 4,650 15, ,752 2,197 2,364 25, ,250 12,381 10,520 $ 86, ,696 89,858 90,253 $ 863, % 13.8% 11.7% 10.0% 51 Santen Annual Report 2005

54 Santen Annual Report 2005

55 TEL: FAX: % TEL: FAX: % 3 Santen Holdings U.S. Inc. 555 Gateway Drive, Napa, California 94558, U.S.A. 100% 4 Santen Inc. 555 Gateway Drive, Napa, California 94558, U.S.A. TEL: FAX: % * 5 Advanced Vision Science, Inc Thornwood Drive, Goleta, California 93117, U.S.A. TEL: FAX: % * 6 Santen Oy Niittyhaankatu 20, P.O. Box 33, FIN Tampere, Finland TEL: FAX: % 7 SantenPharma AB Solna torg 3, SE Solna, Sweden TEL: FAX: % 8 Santen GmbH Industriestrasse 1, Germering D-82110, Germany TEL: FAX: % 9 Taiwan Santen Pharmaceutical Co., Ltd TEL: FAX: % 10 Santen Pharmaceutical Korea, Co., Ltd. Room 1002, Center Building, 91-1, Sogongdong, Chung-ku, Seoul Republic of Korea TEL: FAX: % * TEL: FAX: TEL: FAX: TEL: FAX: TEL: FAX: TEL: FAX: TEL: FAX: TEL: FAX: TEL: FAX: Santen Annual Report 2005

56 TEL: IR 0.0% 32.8% FAX: E: ir@santen.co.jp URL: % 0.4% ,247 8, % 13.6% UFJ TEL: ,308 1,691 86,658,703 7, % 4, , , , , , , UFJ 2, , ,000 2,400 1,800 1,200 TOPIX /4 01/4 02/4 03/4 04/4 05/4 TOPIX 8,000 6,000 4,000 2, /4 01/4 02/4 03/4 04/4 05/ ,410 1,635 1,435 2,240 2,635 1, ,099 1,362 2, Santen Annual Report 2005

57

58 40 FX AG 100%

8% No

8% No Our vision... 24 24 3 8% No.1 3... 4 23-25... 6... 6... 8... 12... 14... 15... 16... 24... 25... 26... 28... 29... 53... 54... 55 for growth Santen Annual Report 24 1 for the future 2 Santen Annual Report

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