How Astellas’ CFO weighs cash management, leadership and ‘nomikai’ culture

Core Insights - The pharmaceutical industry faces high risks due to low success rates in R&D, but cash flow can be predictable for several years with good assets before losing exclusivity [1] - Astellas, one of Japan's largest drugmakers, generated over ¥1 trillion (approximately $6.4 billion) in revenue in the first half of FY2025, highlighting its significant global presence and the pressure on finance to support growth and manage volatility [5][9] - The CFO of Astellas emphasizes the need for transformation due to a major loss of exclusivity on a large asset, focusing on providing visibility across various scenarios to prepare for potential impacts [6][15] Financial Strategy - Astellas is prioritizing investments in future growth areas such as technology and R&D, while also ensuring sustainable returns to shareholders through stable dividend growth and share buybacks [8] - The company is actively working on strengthening its balance sheet after shifting from a net cash position to a net debt position following a $6 billion acquisition [9][10] - Astellas has successfully reduced its gross leverage ratio from 3.4 two years ago to around 1.6 after the first half of this year, indicating steady improvement in financial health [13] Operational Focus - The CFO is restructuring cash pooling and improving borrowing structures while collaborating closely with the supply chain to optimize cash flow and reduce inventory [12] - Astellas is focusing on cash productivity and working capital improvement to free up cash and pay down debt, which is essential for reducing leverage [11] Cultural and Communication Shifts - There is a cultural shift in Japan, with younger employees moving away from traditional after-work socializing (nomikai) and preferring organized communication during working hours [22][27] - The CFO is adapting to this change by creating opportunities for direct communication through town halls and roundtable sessions, ensuring that employees feel supported without the pressure of after-work events [25][27]