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Consolidated Annual Financial Report for fiscal 1996

1. CONSOLIDATED ANNUAL FINANCIAL RESULTS

(1) RESULTS OF ANNUAL OPERATIONS

Period Net Sales Percent
Change
Operating
Income
Percent
Change
Ordinary
Income
Percent
Change
Apr.1,1996-
Mar.31,1997
¥281,560 mil. 3.0%percent ¥43,752 mil. 2.2%percent ¥43,507 mil. 2.8%percent
Same period
last year
¥273,404 mil. 5.8%percent ¥42,821 mil. 9.2%percent ¥42,315 mil. 8.8%percent
Period Net Income Percent
Change
Earnings
per Share
(EPS)
Fully Diluted EPS Return
on Equity
Ordinary
Income
/Total Assets
Ordinary
Income
/Sales
Apr.1,1996-
Mar.31,1997
¥19,445 mil. 2.0%percent ¥71.00 ¥66.86 8.1%percent 9.7%percent 15.5%percent
Same period
last year
¥19,068 mil. 9.7%percent ¥74.14 ¥69.82 8.7%percent 10.2%percent 15.5%percent
Note: Equity in earnings of companies accounted for using the equity method was ¥165 million in fiscal year 1996, compared with ¥113 million in the fiscal year 1995.

(2) FINANCIAL POSITION

Year End Total Assets Shareholders'
Equity
Ratio of Share-holders'
Equity
Shareholders'
Equity per Share
Mar.31,1997 ¥456,617 mil. ¥254,391 mil. 55.7%percent ¥915.71
Mar.31,1996 ¥442,949 mil. ¥227,416 mil. 51.3%percent ¥884.14

(3) CONSOLIDATED SUBSIDIARIES AND APPLICABLE METHOD OF ACCOUNTING

Number of consolidated subsidiaries: 34 Including: Eisai Chemical Co., Ltd.
Sanko Junyaku Co., Ltd.
Eisai Corporation of North America
Number of non-consolidated subsidiaries: 2 Equity method applied for 1 company.
Number of associated companies: 8 Equity method applied for 8 companies.

(4) CHANGES IN ACCOUNTING METHOD, ETC.

(a) Number of consolidated subsidiaries and changes in application of equity method during fiscal 1996.
* Number of newly consolidated subsidiaries: 2 (Including Elmed Eisai Co., Ltd.)
* Number of companies omitted from consolidation: None
* Number of companies to which equity method newly applied: None
* Number of companies omitted from application of equity method: None
(b) Accounting changes
No changes from the previous period.

2. FORECASTED CONSOLIDATED FINANCIAL RESULTS FOR THE FISCAL YEAR ENDING MARCH 31, 1998

Period Net Sales Ordinary Income Net Income
Apr.1,1997-
Mar.31,1998
¥300,000 mil. ¥45,000 mil. ¥20,500 mil.
Note: Forecasted earnings per share (consolidated): ¥73.79
Forecasted earnings per share (non-consolidated): ¥80.99

Reference - Non-consolidated Financial Results of Eisai Co., Ltd.

Period Net Sales Percent
Change
Ordinary
Income
Percent
Change
Ordinary
Income
Percent
Change
Apr.1,1996-
Mar.31,1997
¥257,906 mil. 1.7%percent ¥45,605 mil. 13.6%percent ¥45,038 mil. 12.1%percent
Period Net Income Percent
Change
Earnings
per Shares
(EPS)
Fully Diluted
EPS
Total Assets Shareholders'
Equity
Apr.1,1996-
Mar.31,1997
¥21,114 mil. 16.7%percent ¥77.07 ¥72.42 ¥414,191 mil. ¥251,004 mil.