Consolidated Financial Results
for the Fiscal Year Ending March 31, 2019
1. Outline of Consolidated Financial Results
2. Highlights of Business Performance
3. Consolidated Financial Results
4. Main Product Sales Update
5. R&D Expenses, Capex & Depreciation
6. Main R&D Activities

P.1
P.2
P.3
P.4
P.5
P.6～7

【reference】
7. Segment information
8. P&L Summary
9. BS Summary
10. Financial summary
11. Consolidated Financial Results and full year forecast
12. KYORIN Pharmaceutical result

P.9
P.10～11
P.12
P.13
P.14
P.15～18

May 13, 2019

KYORIN Holdings, Inc.
These forecast performance figures are based on information currently available to theCompany and may include uncertain factors or risk that affect our future performance.
Accordingly, actual business results may materially differ from the forecasted figures due
to various factors in the future.

Outline of Consolidated Financial Results for Fiscal 2018(¥ million)

FY2015FY2016FY2017FY2018changeFY2019(forecast)

ChangeNet sales

119,483

115,373

110,640

113,620＋2.7%

114,100＋0.4%

Operating income

19,636

10,413

8,822

8,972

＋1.7%

9,100

＋1.4%

Ordinary income

19,995

10,874

9,345

9,438

＋1.0%

9,600

＋1.7%

Net income

13,639

7,305

6,574

6,869

＋4.5%

7,100

＋3.4%

Net income per share(yen)

184.28円

99.45円

89.28円

104.68円＋17.2%

123.94円＋18.4%

Total assets

197,825

192,668

196,736

173,034－12.0%－－

Total equity

157,049

157,837

163,297

123,395－24.4%－－

Consolidated Business Results for Fiscal 2018
[Net Sales] Regarding the new drugs (in Japan), sales increased significantly despite the drug price revision. Revenues from our main product Flutiform grew, and thenew product Beova and the newly released Nasonex nasal spray contributed to grow. Regarding the generic medicine, revenues also increased. Regarding the new drugs(overseas), revenues decreased mainly due to the absence of lump-sum payments received in conjunction with the progress in the development of license-out products,
and revenues from the healthcare business declined slightly. Overall net sales rose 2,980 million yen (up 2.7% from the previous year), to 113,620 million yen.

[Profit] Gross profit fell 4,166 million yen from the previous year, chiefly reflecting a higher cost of sales ratio as a result of the National Health Insurance (NHI) pricerevision and a decrease in lump-sum payments received. Meanwhile, selling expenses and general administration expenses decreased by 4,316 million yen from theprevious year (including a reduction of 3,452 million yen in R&D expenses) as a result of efforts regarding cost reduction, and operating income was 8,972 million yen, up
150 million yen from the previous year. Profit attributable to owners of parent is 6,869 million yen (up 4.5% from the previous year).

Consolidated Business Results Forecast for Fiscal 2019
[Net sales and income] Sales of new drugs (in Japan) are expected to be lower than last year’s level, while sales of new drugs (overseas) and generic drugs are
anticipated to rise year on year in the ethical drug business. With sales expected to increase in the healthcare business, overall net sales will also grow. In terms of profit,
gross operating income is expected to rise, despite the impact of the National Health Insurance price revision due to an increase in revenues and improvement in the costof sales ratio resulting from a rise in the percentage of new drugs in the product lines. With the rise in selling expenses and general administration expenses including R&D
expenses offset, overall profit is also expected to increase.
In terms of consolidated results for the fiscal year ending March 31, 2020, net sales are forecast to be 114,100 million yen (up 0.4% from the previous year), operating
income to be 9100 million yen (up 1.4% from the previous year), and profit attributable to owners of parent to be 7,100 million yen (up 3.4% from the previous year).

1

Highlights of Business Performance（ Units: ¥ billion ）Net Sales decreased ¥3.0bln year on year.
Cost of sales ratio increased 5.1%
・ Impact of drug price revisions (approximately 7%)
・ Increase in sales of generic drugs
・ Decrease in lump-sum revenue due to out-licensed
product in the previous year
■Gross Profit decreased ¥4.2bln year on year

Net sales

Net sales
SG&A expenses decreased ¥4.4bln year on year
・R&D expenses decreased ¥3.4bln
・SG&A(excluding R&D) decreased ¥0.9bln■Operating Income increased ¥0.2bln year on year2Consolidated Financial Results（changeactual）（ Units: ¥ billion ）￥113.6bln(＋3.0) (＋3.0)￥107.9bln●Sales of new ethical drugs ￥77.7bln(+3.2) (＋3.3)(＋4.0) (＋1.6)■ Net Sales

Net Sales (total)

FY2017FY2018

110.6

113.6

Change＋3.0

Ethical drugs
Business

104.7

107.9

＋3.2

◆Sales of new
ethical drugs

77.0

78.5

＋1.5

●Japan

73.7

77.7

＋4.0

3.3

0.8

－2.5

●Overseas◆Generic drugs

Healthcare
Business

27.7
5.9

29.3
5.8

＋1.6
－0.1

Operating Income

8.8

9.0

＋0.2

Ordinary Income

9.3

9.4

＋0.1

Net Income

6.6

6.9

＋0.3

（change
forecast）◆ Ethical drugs business

FY17

・ Flutiform・ Desalex
・ Kipres・ Nasonex
・ Uritos
・ Beova・ Pentasa
・ Mucodyne

11.9
4.9
18.8
―
7.2
―
15.3
8.7

●Sales of new ethical drugs in Overseas

FY18

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

13.1
3.7
13.9
12.8
6.6
0.7
13.5
6.8

￥0.8bln（ ＋1.2） ( ＋0.8)（ －1.2） ( －1.1)（ －4.9） ( ＋0.7)（＋12.8） ( ＋2.7)（ －0.6） ( －0.2)（ ＋0.7） ( －0.1)（ －1.8） ( －0.2)（ －1.9） ( －0.4)(－2.5) (－0.2)

Decrease in lump-sum revenue due to out-licensed product in the previous year

●Sales of Generic drugs￥29.3bln(＋1.6) (+1.9)

Increase in sales of generic drugs released in fiscal 2018

◆ Healthcare Business￥5.8bln（－0.1) (－0.2)(＋0.2) (＋0.8)■ Operating Income￥9.0bln◆Operating Income margin decreased 0.1 percentage points to 7.9%
●Cost of Sales Ratio : 44.4%⇒49.5% increased 5.1 percentage points
・ Impact of drug price revisions (approximately 7%)
・ Increase in sales of generic drugs
・ Decrease in lump-sum revenue due to out-licensed product in the previous year

●R&D Ratio : 12.9%⇒9.5% decreased 3.4 percentage points＊¥14.2bln⇒¥10.8bln（－¥3.4bln）
・Decrease in lump-sum contractual payments paid in conjunction with the introduction of KRP-N118■Dividend per share(interim dividend ¥30.0) ¥75.0
Dividend ratio 72.6%●SG&A Ratio : 34.8%⇒33.1% decreased 1.7 percentage＊¥38.5bln⇒¥37.6bln（－¥0.9bln） ・decrease of Labor costs, Selling costs.

■ Net Income￥6.9bln(＋0.3) (＋0.8)

Main Product Sales Update（ Units: ¥ billion ）Flutiform(Anti-asthmatic)

Desalex(allergic rhinitis)

Kipresfor adult（LT receptor antagonist）

for children
Sales ofnew
ethicaldrugs(Japan)Nasonex（Spray type allergic rhinitis
remedy）

Uritos（Kyorin）(Overactive bladder)

FY2015FY2016FY2017

3.6

7.2

10.1

11.9 13.1

―

―

1.0

4.9

26.7
14.5

28.6
15.4

17.7
14.9

―

―

7.3

7.5

＋9.8

14.0

3.7

－24.1

8.0

8.3
10.5

6.2
7.6

－24.6
－27.4

4.5
6.1

―

―

12.8

―

6.2

7.5

7.2

6.6

－8.6

6.0

0.7

―

2.5

－11.4

12.0

Beova
(Overactive bladder)

Pentasa(Ulcerative colitis andCrohn’s disease treatment)

Mucodyne（Mucoregulant）

Generic
drugsOver-thecounter
drugs

MONTELUKAST
Tablets“KM”※※ Authorized generic drug (AG) of
Montelukast (KIPRES)

Milton(Disinfectant)

FY2019FY2018actual Change（％） (forecast)

FY2014

17.2

16.1

15.5

15.3 13.5

14.0

13.0

9.9

8.7

6.8

－22.1

6.0

―

―

8.2

11.7 11.9

＋1.3

11.6

2.0

2.1

2.2

2.2

-1.7

2.3

2.2

4

R&D Expenses, Capex & Depreciation（ Units: ¥ million ）FY2014FY2015FY2016FY2017FY2018actualChangeFY2019（forecast）

R&D expenses

13,51413,01913,56914,243

10,790－24.2%

10,900Capitalexpenditure

2,655

7,218

3,051

2,885

2,306

－20.1%

4,100

Depreciation
expense

3,053

3,730

3,619

3,628

2,940

－19.3%

3,500<Capital expenditure (Actual/Forecast)>

FY2017（ Units: ¥ billion ）FY2018FY2019（forecast）

Plant facilities

1.1

1.5

3.2

Equipment for control,
sales activities

0.2

0.3

0.4

Equipment for research

1.5

0.5

0.5
5

Main R&D Activities -1 (May 13 , 2019 Release)

Ph III ~ Application submitted
Stage※Changes from the previous announcement (Feb 5 2019)

Compound/
Code

Therapy area
/ActionApplication(4/2017)

KRPAM1977X(Oral agent）

New quinolone
synthetic
antibacterial
agent

In-house

PreparingforApplication

KRPAM1977Y(Injection）

New quinolone
synthetic
antibacterial
agent

In-house※Preparing
forApplication

KRP-116D

Interstitial
cystitis―

Evaluation committee on unapproved or off-labeled
drugs with high medical needs“Dimethyl sulfoxide(DMSO)”

PreparingforApplication

KRP-108P

Anti-asthmatic(U.K.)
Vectura

Expand the indication of Flutiform to pediatric patients

Japan

Overseas

OriginFeatures

Comments-Superior ability to combat drug-resistant grampositive bacteria (incl. MRSA)-has a powerful antimicrobial activity against
anaerobic bacteria- Expectation of high clinical effects with excellent
tissue penetration-High degree of safety expected since safety hurdles
cleared prior to clinical trials※ MK-7264, a drug for chronic coughing: MSD is working on Phase III development.
Concluded a memorandum of understanding for sales collaboration.

6

Main R&D Activities -2 (May 13 , 2019 Release)
POC Project (Ph I ~ Ph II)
Stage
Japan

Overseas

Compound/
Code

Therapy area
/ActionOriginFeatures

Comments

PhⅡ（8/2018）

KRP-N118(SK-1404)

Nocturia Dueto Nocturnal
Polyuria

SANWA
KAGAKUKENKYUSH
O CO., LTD.

A vasopressin V2 receptor agonist that promotes the reabsorption of waterby the collecting duct of the kidney to reduce the amount of urine(antidiuretic action). With its high efficacy and safety, the drug is expected
to be a therapeutic agent for nocturia due to nocturnal polyuria.

・License agreement with
SANWA KAGAKUKENKYUSHO CO., LTD,
(3/2018)

PhⅡ（6/2018）

Ad-SGE-REIC

malignantpleuralmesothelioma

Okayama
University

A gene-therapy product using a novel tumor suppressor gene of reduced
expression in immortalized cells/ Dickkopf-3 (REIC/Dkk-3), which was
discovered by researchers from Okayama University, as a therapeutic gene.
It is expected to have direct effect on primary tumor lesions and indirect
effect on metastatic tumor lesions as a gene-therapy product thatsimultaneously induces tumor cell-selective apoptosis and the activation of
antitumor immunity respectively.

Adopted to Next
generation Technology
Transfer Program(NexTEP)(6/2014)【US】
Momotaro-Gene
prostate
cancer(PhⅠ/Ⅱ)【JP】
Okayama University
liver cancer(PhⅠ/Ⅰb)

Licensing development
Stage/
Overseas

Compound/Code

Licensee /Collaborative
research

Therapyarea/Action

PhⅠ

FPR-2 agonist
program

BMS

Nondisclosure

PhⅠ

KRP-203

Implementing
licensingactivities

GvHD

OriginIn-house

Features

Comments

FPR-2 agonists that mainly inhibit the
migration of neutrophils and exhibit antiinflammatory action.

License agreement with BMS(12/2015)

Sphingosine-1-Phosphate Receptor Agonist

Because Novartis (licensee) decided to
discontinue development of KRP-203
for strategic reasons,kyorin receive thereturn of development rights.

7

Reference8Segment information
Sales, Profit or Loss of each report segment（ Units: ¥ billion ）Sales

ChangeNet Sales (total)

113.6

＋3.0

9.0

＋0.2

Ethical drugs business

107.9

＋3.2

8.3

＋0.1

78.5

＋1.5

○Overseas

77.7
0.8

＋4.0
－2.5

◆Generic drugs

29.3

＋1.6

Healthcare business

5.8

－0.1

0.2

＋0

－

0.5

＋0.1

◆Sales of new ethical drugs○JapanAmount of adjustment－

ProfitChange9

P&L Summary: Consolidated Results – (1)（ Units: ¥ million ）FY2017■ Sales

FY2018Actual% Sales

Actual% Sales% Change

Sales

110,640

100.0%

113,620100.0%＋2.7%＋2,979■Ethical Drugs
business

104,703

94.6%

107,859

94.9%

＋3.0%

＋3,155◆Sales of new
Ethical Drugs

77,041

69.6%

78,525

69.1%

＋1.9%

＋1,48373,702

66.6%

77,694

68.4%

＋5.4%

＋3,992○Japan＜ Breakdown：change ＞

Change￥113,620mil （＋2,979）● Ethical drug sales in Japan ￥77,694mil （＋3,992）（¥:billion）
・ Flutiform・ Desalex
・ Kipres・ Nasonex
・ Uritos
・ Beova・ Pentasa
・ Mucodyne

FY17

FY18

11.9
4.9
18.8
―
7.2
―
15.3
8.7

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

13.1
3.7
13.9
12.8
6.6
0.7
13.5
6.8

（ ＋1.2）（ －1.2）（ －4.9）（＋12.8）（ －0.6）（ ＋0.7）（ －1.8）（ －1.9）● Ethical drug sales overseas ￥830mil （－2,509）
・Decrease in lump-sum revenue due to out-licensed product○Overseas◆Generic Drugs■Healthcare
Business

3,339

3.0%

830

0.7%

－75.1%

27,66225.0%

29,334

25.8%

＋6.0%

－2,509in the previous year
・ Gatifloxacin＋1,672￥0.6bln● Generic Drugs⇒￥0.4bln( －0.2)￥29,334mil（＋1,672）

・ Increase in sales of generic drugs released in fiscal 2018

5,937

5.4%

5,761

5.1%

－3.0%

－175

● Healthcare Business￥5,761mil （－175）<Subsidiaries and Equity-method Affiliates>
Consolidated subsidiaries (7) ：KYORIN Pharmaceutical Co., Ltd.
Kyorin USA, Inc.
Kyorin Europe GmbH
ActivX Biosciences, Inc.
KYORIN Rimedio Co., Ltd.
KYORIN Medical Supply Co., Ltd.
KYORIN Pharmaceutical Group Facilities Co.,Ltd.
Equity-Method Affiliates： Nippon Rika Co., Ltd.

10

P&L Summary: Consolidated Results – (2)（ Units: ¥ million ）FY2017◆Cost of Sales Ratio : ＋5.1 percentage points

FY2018Actual% Sales

Actual% Sales

Sales

110,640

100.0%

113,620100.0%+2.7%＋2,979

Cost of Sales

49,06444.4%

56,21049.5%+14.6%＋7,146Gross Profit

61,576

55.7%

57,409

50.5%

－6.8%

－4,16652,75347.7%

48,436

42.6%

－8.2%

－4,316(14,243)12.9%(10,790)

9.5%－24.2%－3,452

8,822

8.0%

8,972

7.9%

＋1.7%

＋150

640
118

0.6%
0.1%

798
332

0.7%
0.3%

＋24.6%＋181.6%＋157

Ordinary Income

9,345

8.4%

9,438

8.3%

＋1.0%

＋93

Extraordinary Profits
Extraordinary Losses

627
910

0.6%
0.8%

66
145

0.1%
0.1%

－89.4%－560－84.0%－764

Income before
income taxes

9,061

8.2%

9,359

8.2%

＋3.3%

＋297

Corporate, inhabitantsand enterprise taxes

2,759

2.5%

2,004

1.8%

－27.4%－754

Tax adjustments

－272

－0.2%

485

0.4%

－

＋758

Net Income

6,574

5.9%

6,869

6.0%

＋4.5%

＋294

SG&A
(Incl. R&D expenses)

Operating
IncomeNon-Operating Income
Non-Operating Expenses% Change＜ Breakdown ＞

Change＋214(44.4 ％→49.5％)
・ Impact of drug price revisions (approximately 7%)
・ Increase in sales of generic drugs
・ Decrease in lump-sum revenue due to out-licensed
product in the previous year

◆R&D Ratio : －3.4 percentage points(12.9％→9.5％)＊ ¥14.2bln→¥10.8bln(decrease ¥3.4bln)
Decrease in lump-sum contractual payments paid in
conjunction with the introduction of KRP-N118◆SG&A (exclude R&D) Expenses : －1.7
percentage points(34.8%→33.1％)＊¥38.5bln→¥37.6bln (－¥0.9bln)
Decrease of Labor costs, Selling costs■Operating Income￥8,972mil（＋150)＊Operating Income margin decreased 0.1percentage
points to 7.9%

■Net Income■Dividend per share＊Consolidated Dividend ratio￥6,869mil (＋294)¥75.0072.6%

11

BS Summary: Consolidated Results（ Units: ¥ million ）Current Assets

FY2017
Actual%totalActual% totalchange119,946

61.0%

114,904

66.4%－5,042

Mk securities
Inventory
Other

44,11747,862599
23,308
4,058

Fixed Assets

76,789Tangible assets
Intangible assets
Investments

Cash, deposits
Notes and accounts receivable

FY2018―32,00752,635501
25,4204,339――－18,659

39.0%

58,13033.6%

21,901
1,750
53,137―

21,792
3,401
32,936―

196,736

100.0%

173,034

100.0%－23,701

Current Liabilities

25,13412.8%

41,48024.0%＋16,345

Notes payable
Other

10,266
14,868―

11,41130,038――

Non-Current Liabilities

8,303

4.2%

8,159

4.7%

－144

Total Liabilities

33,43817.0%

49,63928.7%＋16,200

Owner’s Equity

155,489

79.0%

116,74467.5%－38,744

7,808

4.0%

6,651

3.8%

－1,157

10,10183－2,377―8,925
56－2,331――

Total Equity

163,297

83.0%

123,395

71.3%－39,902

Total Liabilities and Equity

196,736

100.0%

173,034

100.0%－23,701

Total Assets

Other Comprehensive
IncomeUnrealized holding gain (loss) on
securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans―＜ Breakdown ＞■ Current Asset ： －￥5,042mil
・ Cash, deposits（ －￥12,109mil）
・ Notes and accounts receivable （ ＋￥4,772mil）
・ Mk securities（－￥98mil）
・ Inventory（ ＋￥2,112mil）・ Other（＋￥281mil）■ Fixed Assets： －￥18,659mil
・ Tangible Assets
・ Intangible Assets
・ Investments（－￥108mil）（ ＋￥1,651mil）（ －￥20,201mil）■ Current Liabi ： ＋￥16,345mil
・ Notes Payable
・ Other（ ＋￥1,175mil）（＋￥15,170mil）■ Non-Current Liabilities ： －￥144mil※ The figures for the preceding fiscal year have been revised retrospectively following the partial revision to the Accounting Standards for Tax Effect Accounting.

12

Financial summary (Consolidated)（¥ million）

FY2014FY2015FY2016※FY2017

FY2018FY2019(forecast)

Sales(Exports)

113,121(1,032)

119,483(5,586)

115,373(764)

110,640(3,339)113,620(830)

114,100(1,300)

Cost of Sales（cost of Sales Ratio ）（％）

46,598(41.2%)

47,360(39.6%)

50,847(44.1%)

49,064(44.3%)

56,210(49.5%)―

SG&A
Ratio to Sales (%)

51,785(45.8%)

52,486(43.9%)

54,113(46.9%)

52,753(47.7%)

48,436(42.6%)―

R&D Expenses
Ratio to Sales (%)

13,514(11.9%)

13,019(10.9%)

13,569(11.8%)

14,243(12.9%)

10,790(9.5%)

10,900(9.6%)

Operating Income
Ratio to Sales (%)

14,737(13.0%)

19,636(16.4%)

10,413(9.0%)

8,822(8.0%)

8,972(7.9%)

9,100(8.0%)

Ordinary Income
Ratio to Sales (%)

15,490(13.7%)

19,995(16.7%)

10,874(9.4%)

9,345(8.4%)

9,438(8.3%)

9,600(8.4%)Net Income
Ratio to Sales (%)

12,064(10.7%)

13,639(11.4%)

7,305(6.3%)

6,574(5.9%)

6,869(6.0%)

7,100(6.2%)EPS (¥)

161.63184.28

99.45

89.28

104.68123.94

Capital

700

700

700

700

700

―

Assets183,383

197,825

192,668

196,736

173,034―

shareholder's equity

140,518

149,808

152,585

155,489

116,744―

Total Equity

148,600

157,049

157,837

163,297

123,395―

BPS (¥)

2,009.45

2,131.67

2,146.83

2,214.13

2,154.05―

ROE (%)

8.4%

8.9%

4.6%

4.1%

4.8%

―

Equity Ratio (%)

81.0%

79.4%

81.9%

83.0%

71.3%

―

Employees

2,445

2,420

2,382

2,348

2,297

―

Capital Expenditure

2,655

7,218

3,051

2,885

2,306

4,100

Depreciation Expense

3,053

3,730

3,619

3,644

2,940

3,500

※ The figures for the preceding fiscal year have been revised retrospectively following the partial revision to the Accounting Standards for Tax Effect Accounting.

13

Consolidated Financial Results and full year forecast（ Units: ¥ million ）Year on year

FY2018FY2019(forecast)

Sales

113,620

114,100

+480

+0.4

■Ethical Drugs business

107,859

108,000

+141

+0.1

◆Sales of new Ethical Drugs

78,52575,800－2,725－3.5

77,69474,400－3,294

－4.2

830

1,300

＋470

＋56.6

29,33432,200＋2,866＋9.8■Healthcare Business

5,761

6,100

＋339

＋5.9

Operating Income

8,972

9,100

＋128

＋1.4

Ordinary Income

9,438

9,600

＋162

＋1.7

Net Income

6,869

7,100

＋231

＋3.4

○Japan○Overseas◆Sales of Generic drugs

changechange（%）

14

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(1)＜Breakdown ＞（ Units: ¥ million ）FY2017change■ Sales

FY2018￥99,736mil（＋2,277）● Ethical drug sales in Japan ￥75,558mil（＋4,036）

Actual% Sales

Actual% Sales% Change

ChangeSales

97,459100.0%

99,736100.0%＋2.３%＋2,277■Ethical Drugs
business

92,341

94.7%

94,731

95.0%

＋2.7%

＋2,930◆Sales of new
Ethical Drugs

74,637

76.6%

76,172

76.4%

＋2.2%

＋1,535（¥:billion）
・ Flutiform・ Desalex
・ Kipres・ Nasonex
・ Uritos
・ Beova・ Pentasa
・ Mucodyne

FY17

11.9
4.9
18.8
―
7.2
―
15.3
8.7

FY18

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

13.1
3.7
13.9
12.8
6.6
0.7
13.5
6.8

● Ethical drug sales oversea ￥613mil（ ＋1.2）（ －1.2）（ －4.9）（＋12.8）（ －0.6）（ ＋0.7）（ －1.8）（ －1.9）（－2,502）

・Decrease in lump-sum revenue due to out-licensed product○Japan71,522

73.4%

75,558

75.8%

＋5.8%

＋4,036in the previous year
・ Gatifloxacin○Overseas◆Generic Drugs■ Healthcare
Business

3,115

3.2%

613

0.6%

－80.3%－2,502

17,703

18.2%

18,558

18.6%

＋4.8%

＋855

5,117

5.3%

5,004

5.0%

－2.2%

－113

￥0.6bln⇒● Generic Drugs￥0.4bln( －0.2)￥18,558mil （＋855）

・ Seles of the MONTELUKAST”AG” for KIPRES increased●Healthcare Business￥5,004mil（

・ Milton￥2.2bln⇒￥2.2bln(・ Rubysta￥1.1bln⇒￥1.3bln( ＋0.2)

－113）

＋0)

15

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(2)（ Units: ¥ million ）FY2017FY2018Actual% Sales

Actual% Sales% Change

ChangeSales

97,459100.0%

99,736100.0%＋2.3%+2,277

Cost of Sales

42,88544.0%

50,44350.6%＋17.6%+7,558Gross Profit

54,57356.0%

49,292

49.4%

－9.7%

－5,281

48,645(13,158)

49.9%

44.0%

－9.7%

－4,739(13.5%)

43,905(9,569)(9.6%)－27.3%－3,589

5,928

6.1%

5,387

5.4%

－9.1%

－541

SG&A
(R&D Expenses)
Operating Income＜ Breakdown ＞◆ Cost of Sales Ratio ： ＋6.6percentage points(44.0％→50.6％)
・ Impact of drug price revisions
・ Increase in sales of generic drugs
・ Decrease in lump-sum revenue due to out-licensed
product in the previous year

◆ R&D Ratio ： －3.9 percentage points(13.5％→9.6％)＊¥13.2bln→¥9.6bln（－¥3.6bln）
・Decrease in lump-sum contractual payments paid in
conjunction with the introduction of KRP-N118

772
92

0.8%

0.8%

＋1.5%

＋11

0.1%

784
50

0.1%

－45.9%－42

Ordinary Income

6,608

6.8%

6,121

6.1%

－7.4%

－487

Extraordinary Profits
Extraordinary
Losses

50
457

0.1%

0.1%

＋20.2%

＋10

0.5%

60
120

0.1%

－73.6%

－336

6,201

6.4%

6,061

6.1%

－2.3%

－140

Corporate, inhabitantsand enterprise taxes

2,156

2.2%

1,193

1.2%

－44.7%－962

Tax adjustments

－592

－0.6%

478

－0.5%

－

＋1,071

4,637

4.8%

4,389

4.4%

－5.4%

－248

Non-Operating Income
Non-operating
Expenses

Income before
Income taxes

Net Income◆ SG&A (exclude R&D) Expenses ：－2.0 percentage Points(36.4％→34.4％)■ Operating Income￥5,387mil(－541)＊Operating Income margin decreased 0.7percentage
points to 5.4%

■ Net Income￥4,389mil ( －248)

16

BS Summary: KYORIN Pharmaceutical(Non-consolidated)（ Units: ¥ million ）FY2017
Actual

FY2018% total＜ Breakdown ＞

Actual% totalchange118,02872.9%＋35,224

―

―

27.1%

－24,860■ Current Assets ： ＋￥35,224mil

Current Assets

82,803

Cash, deposits
Accounts receivable
Mk securities
Inventory
Other

18,52743,151599
17,736
2,789

―

7,581
47,814501
19,23742,893Fixed Assets

68,81845.4%

43,957

Tangible assets
Intangible assets
Investments

12,6491,324
54,844

―

7,685
3,087
33,184――

Total Assets

151,622100.0%

161,986

100.0%＋10,363

Current Liabilities

19,39712.8%

36,562

22.6%＋17,164

Notes Payable
Other

7,863
11,533―

10,29926,262――・ Notes Payable
・ Other■ Non-Current Liabilities ：＋￥493mil

54.6%

Non-Current Liabilities

3,609

2.4%

4,103

2.5%

＋493

Total Liabilities

23,00715.2%

40,665

25.1%＋17,658

Owner’s Equity

118,595

78.2%

112,464

69.4%－6,13010,019

6.6%

8,856

5.5%

－1,163

Total Equity

128,61484.8%

121,320

74.9%－7,294

Total Liabilities and Equity

151,622100.0%

161,986

100.0%＋10,363

Valuation and translation
adjustments

・ Cash, deposits
・ Accounts receivable
・ Mk securities
・ Inventory
・ Other（－￥10,946mil）（ ＋￥4,663mil）（－￥98mil）（ ＋￥1,501mil）（＋￥40,104mil）■ Fixed Assets ： －￥24,860mil
・ Tangible Assets
・ Intangible Assets
・ Investments（ －￥4,963mil）（ ＋￥1,762mil）（－￥21,659mil）■ Current Liabilities ： ＋￥17,164mil※ The figures for the preceding fiscal year have been revised retrospectively following the partial revision to the Accounting Standards for Tax Effect Accounting.

（ ＋￥2,435mil）（ ＋￥14,728mil）

17

Financial Summary: KYORIN Pharmaceutical(Non-consolidated)（¥ million）

FY2014FY2015FY2016※FY2017

FY2018FY2019(forecast)

Sales(Exports)

98,452(840)

106,390(5,343)100,022(528)

97,459(3,115)99,736(613)

100,000(1,100)

Cost of Sales（cost of sales ratio ）％38,951(39.6%)

40,798(38.3%)

43,503(43.5%)

42,885(44.0%)

50,443(50.6%)―

SG&A
Ratio to Sales (%)

47,349(48.1%)

48,129(45.2%)

49,714(49.7%)

48,645(49.9%)

43,905(44.0%)―

R&D Expenses
Ratio to Sales (%)

12,843(13.0%)

12,421(11.7%)

12,785(12.8%)

13,158(13.5%)

9,569(9.6%)

9,500(9.5%)

Operating Income
Ratio to Sales (%)

12,151(12.3%)

17,461(16.4%)

6,803(6.8%)

5,928(6.1%)

5,387(5.4%)

6,100(6.1%)

Ordinary Income
Ratio to Sales (%)

13,115(13.3%)

17,985(16.9%)

7,396(7.4%)

6,608(6.8%)

6,121(6.1%)

6,900(6.9%)Net Income
Ratio to Sales (%)

10,412(10.6%)

12,113(11.4%)

4,454(4.5%)

4,637(4.8%)

4,389(4.4%)

5,200(5.2%)EPS (¥)

140.20163.11

59.98

62.45

59.10

―

Capital

4,317

4,317

4,317

4,317

4,317

―

Assets142,967

155,637

149,382

151,622

161,986―

shareholder's equity

110,534

117,300

117,744

118,595

112,464―

Total Equity

118,246

127,610

125,310

128,614

121,320―

BPS (¥)

1,592.16

1,718.23

1,687.28

1,731.76

1,633.55―

ROE (%)

9.1%

9.9%

3.5%

3.7%

3.5%

―

Equity Ratio (%)

82.7%

82.0%

83.9%

84.8%

74.9%

―

Employees

1,771

1,731

1,687

1,673

1,567

―

Capital Expenditure

1,125

5,059

905

815

599

400

Depreciation Expense

1,667

2,241

2,143

1,942

1,183

1,400

※ The figures for the preceding fiscal year have been revised retrospectively following the partial revision to the Accounting Standards for Tax Effect Accounting.

18