In FY2008, Chugai reported a decline in both revenues and operating income, with revenues down 5.2% to ¥326.9 billion, and operating income down 22.6% to ¥51.6 billion. However, FY2008 was also a year in which recently launched new products and expanded indications started contributing to business performance, solidifying our base for the next growth stage.

We saw a solid rise in sales of Actemra®, a driver of future growth developed in-house, with the approval of the additional indication in Japan for the treatment of rheumatoid arthritis (RA). Other products made steady market penetration, including Avastin®, Tarceva®, and Copegus® —all launched in 2007— as well as Xeloda® and Herceptin®, which obtained additional indications in 2007 and 2008. As a result, Chugai seized the top share in the domestic oncology market for the first time.

On the other hand, there was a negative impact on sales and profits due to the decline in sales of Tamiflu® for government stockpiling, the NHI price revision in April 2008, the continued competition faced by our mainstay product Epogin® and the termination of the marketing collaboration with sanofi-aventis had negative impacts on sales and profits. But thanks to new growth drivers, product sales excluding Tamiflu® in 2008 achieved a new company record.

Today, the pharmaceutical industry faces a multitude of challenges. These include continued pressure around the world to reduce medical costs, depletion of new drug candidates, soaring R&D costs, expiration of new patents for major products and generic erosion. In response, leading pharmaceutical companies have embarked on large-scale investment initiatives in new medical fields with high growth potential, as well as in development for antibody drugs and other biopharmaceuticals.

In this severe business environment, Chugai has already begun instituting dramatic transformations targeting further growth. Chugai became the leading biopharmaceutical company in Japan by beginning development of two biopharmaceuticals, Epogin® and Neutrogin®, in the 1980s and turning them into major products that are at the core of our business. This was followed by the successful development and launch of Actemra®, the first antibody product originating in Japan. In addition, since our strategic alliance with Roche in 2002, we have become established a rich development pipeline centering on the oncology field, and have greatly expanded our growth potential. FY2008 was the year when we saw the fruits of the strategic alliance, as new products from Roche started to make a full-scale contribution to our business performances.

Under our Mid-Term Business Plan, Sunrise 2012, we are targeting ¥460 billion in consolidated revenues and ¥80 billion in operating income by FY2012. Building on our existing base of mainstay products, the plan calls for us to establish a firm foundation with our future growth drivers, and we are committed to translating the high potential of these products into stronger earnings.

I would like to ask shareholders and other investors for their continued understanding and support.