English translation

Summary of Financial Statements for the Fiscal Year Ended December 31, 2016
[Japanese GAAP] (Non-consolidated)
Company Name

SymBio Pharmaceuticals Limited

February 9, 2017
Listing: Tokyo Securities Exchange

Securities Code4582

URL http://www.symbiopharma.com/

Representative

Representative Director,
President and Chief Executive Officer

Fuminori Yoshida

Contact Person

Director, Finance & Accounting

Kenji Murata

TEL +81-3-5472-1125

Date of dividend
payment (plan)―

Ordinary Annual General Meeting
March 29, 2017of Shareholders
Scheduled Date to File Securities
March 30, 2017
ReportSupplementary materials for thefinancial statements:

Yes

Holding of earnings performanceYes
review:

No

No (For securities analysts and institutional investors)(millions of yen – rounded down, unless otherwise stated)
1. Business Results for FY 2016 (January 1, 2016 to December 31, 2016)(1) Operating Results(Percentages indicate year-on-year changes)
Net Sales
Operating Income (loss)
Ordinary Income (loss)
Net Income (loss)
millions of yen% millions of yen% millions of yen% millions of yen%
FY 2016
2,368
22.5(2,127)－(2,316)－(2,313)－
FY 2015
1,933(1.1)(2,551)－(2,630)－(2,632)－Net Income (loss) per share

Diluted Net Income per
share

Yen
(58.82)(81.26)Yen－－

FY 2016
FY 2015(Reference) Equity in earnings:

FY 2016

Ratio of Net
Ratio of Ordinary Ratio of Operating
Income (loss) to Income (loss) to Income (loss) toequity (ROE) total assets (ROA)
net sales%%%(50.4)(39.1)(89.8)(48.3)(42.3)(132.0)－ million yen

FY 2015－ million yen(2) Financial Position
Total Assets
millions of yen
6,878
4,984

FY 2016
FY 2015(Reference)

Equity:Net Assets
millions of yen
5,484
4,431

FY 2016

Equity Ratio
%
73.5
82.9

Net Assets per ShareYen
108.61127.56

FY 2015

4,131 million yen

Cash flow from financing
activities
millions of yen
3,658
(2)

Cash and cash equivalents
at the end of the year
millions of yen
5,719
4,261

5,053 million yen(3) Cash Flow

FY 2016
FY 2015

Cash flow from operating
activities
millions of yen(1,960)(2,271)

Cash flow from investing
activities
millions of yen
(43)
1,489

2. Dividends
Annual Dividend per Share
1st Quarter

3rd Quarter

Fiscal Year End

Yen
0.00
0.00
0.00

Yen

Yen
0.00
0.00
0.00

Yen
FY 2015
FY 2016
FY 2017 (Forecast)

Total Dividends

2nd Quarter

－
－
－

－
－
－

Payout ratio

Full Year
Yen
0.00
0.00
0.00

millions of yen

%

－
－

－
－
－

Ratio ofdividends to
net assets%－－

3. Earnings Forecasts for FY 2017 (January 1, 2017 to December 31, 2017)
Operating
Income (loss)

Net Sales
Full Year(Percentages indicate year-on-year changes)
Net Income (loss)
Net Income (loss)
per share

Ordinary
Income (loss)

millions of yen%

millions of yen%

millions of yen%

millions of yen

%

Yen

2,903

22.6

(3,238)－(3,303)－(3,306)－(71.07)

Notes:(1) Changes in accounting policies, changes in accounting estimates and restatements after error corrections(a) Changes in accounting polices due to revision ofYes ・ No
accounting standards:(b) Changes in accounting polices due to otherreasons:

Yes ・ No(c) Changes in accounting estimates:

Yes ・ No(d) Restatements after error correction:

Yes ・ No

(2) Number of shares outstanding (common stock)(i) Number of shares outstanding at the end of
the year (including treasury stock)

FY 2016

46,530,824 shares

FY 2015

32,390,923 shares(ii) Number of shares of treasury stock at theend of the year

FY 201675 shares

FY 201575 shares(iii) Average number of shares during the year

FY 2016

39,329,706 shares

FY 2015

32,390,848 shares(Note) Refer to “Per share information” on Page 55 for the number of shares that forms the basis for calculating net income(loss) per share.
* Status of the annual audit
The audit of financial statements as required by the Financial Instruments and Exchange Act was underway as of the date of thissummary of financial statements.
* Explanation regarding the appropriate use of earnings forecasts and other matters(Notes on forward-looking statements)
All forecasts presented in this document, including earnings forecasts, are based on information currently available tomanagement and assumptions judged to be reasonable. Actual results may differ substantially from these forecasts due to various
factors. Regarding the assumptions on which the Company’s earnings forecasts are based and their usage, please refer to“Business results analysis” on Page 1 of the attachment.

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Index of the attachment
1. Business results…………………………………………………………………………………………………….…………
(1) Business results analysis ……………………………………………………………………………………………...…..
(2) Financial position analysis ………………………………………………………………………………………………..
(3) Basic policies concerning profit distribution and dividends …………………………………………………………..….
(4) Business risks ………………………………………………………………………………………………….…...……..
2. Status of corporate group ………………………………………………………………………………………………..........
3. Management policies ……………………………………………………..….………………………………………..……...
(1) Basic policy of company management …………………………..…………………………………………………..…...
(2) Key performance index ………………………………………..……………………………………………….……..…..
(3) Pipeline ………………………………………………………………………………………………………………........
(4) Medium to long-term strategy ………………………………………………………………………………….……...….
(5) Issues to be addressed by the Company …………………………………………………………………………………..
(6) Other important matters concerning the Company’s management …………………………………….…………………
4. Basic views on selection of accounting standards ………………………………………..……………..……………..……..
5. Financial statements …………………………………………………………………………………………………….....….
(1) Balance sheets …………………………………………………………………………………………………….…..…..
(2) Statements of operations ……………………………………………………………………………………………..…...
(3) Statements of changes in net assets ……………………………………………………………………..…….……...…..
(4) Statements of cash flow …………………………………………………………………………………………..……....
(5) Events and conditions that indicate there could be substantial doubt about the going concern assumption…………….
(6) Significant accounting policies …………………………………………………………………………………....…......
(7) Notes on financial statements …………………………………………………………………………………….....……
(Balance sheets) …………………………………………………………………………………………………..…….
(Statements of operations) ………………………………………………………………………………..………..…...
(Statements of changes in net assets) …………………………………………………………………..………...……..
(Statements of cash flow) ………………………………………………………………………………………..….......
(Lease transactions) ……………………………………………………………………………………………..…........
(Financial instruments) …………………………………………………………………………………..……………...
(Derivative transactions) ………………………………………………………………………………………………..
(Retirement benefits) ………………………………………………………………………………………….……..….
(Stock options) ………………………………………………………………………………………………….…...….
(Deferred tax accounting) ………………………………………………………………………………………………
(Asset retirement obligations) …………………………………………………………………………………………..
(Segment information) …………………………………………………………………………………………….……
(Related party information) …………………………………………………………………………………..….……...
(Per share information) ………………………………………………………………………………………………….
(Significant subsequent events) …………………………………………………………………………………………
6. Other ………………………………………………………………………………………………………………………….…
(1) Change in officers ………………………………………………………………………………………………………...
(2) Other ………………………………………………………………………………………………………………..…….

１
１
３
４
４
12
12
12
12
12
14
16
17
17
18
18
20
21
23
25
25
27
27
27
28
30
30
31
35
36
37
52
52
53
54
54
56
56
56
56

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

1. Business results(1) Business results analysis(Business Results for FY 2016)
The accelerated decline in birthrate and aging of the population as well as increasing medical expenses due to the advancementof medicine have long been pointed out as major economic and financial challenges facing Japan. Promoting the use of genericdrugs, conducting appropriate evaluation of drugs, and rectifying the problem of excessive drug administration and left-overdrugs, are the areas which enable further efficiency in medical expenditures.
In such an environment, as a symbolic measure during FY 2016, the authorities declared a policy via an urgent NHI pricerevision in which new drugs with expected annual sales of over 100 billion yen on the NHI price basis would be subject to pricerevisions. Fundamental reforms of the NHI price scheme are required for the further revisions of medical fees.
Thus, while the environment surrounding the Japanese pharmaceutical industry has been changing at an unprecedented pace,progress in the Company’s business for FY 2016 is as follows.
(i) Domestic[Anticancer agent: SyB L-0501 (generic name: bendamustine hydrochloride, trade name: TREAKISYM®)]
The Company markets TREAKISYM® in Japan through its business partner, Eisai Co., Ltd. (“Eisai”), for the indicationsof recurrent/refractory low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma, the first-line treatment of lowgrade non-Hodgkin’s lymphoma and mantle cell lymphoma, and chronic lymphocytic leukemia. Although net sales showeda slight decrease of 99.2% year-on-year (NHI price basis), net sales through Eisai were generally as planned.
By pursuing four indications, the Company has already obtained approvals for three indications, and continues to pursue
approval for the remaining one additional indication, for patients who need new therapies and for maximizing the productvalue of these agents.
The Company filed a supplemental New Drug Application (sNDA) in Japan to the Pharmaceuticals and Medical Devices
Agency (“PMDA”) in December 2015 for the indication of chronic lymphocytic leukemia, and obtained approval for the
additional indication in August 2016. The Company has developed and applied for this indication upon request of the
Ministry of Health, Labour and Welfare in Japan as one of the “Unapproved or Off-Label Drugs with High Medical
Needs.” This is the second approval after the approval of an sNDA for the indication of recurrent/refractory low-grade nonHodgkin’s lymphoma and mantle cell lymphoma which the Company has already received in October 2010.
Regarding the first-line treatment of low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma, the Company filed
an sNDA in Japan in December 2015 and received approval for additional indications in December 2016. In Europe, while
the Company received a notice from Astellas Pharma GmbH (Head office: Germany) that they withdrew their application in
January 2016, the Company, upon consultation with the PMDA, went ahead with the procedures for obtaining approval forthe additional indications in Japan and was able to obtain such approval.
Lastly, regarding the indication of recurrent/refractory intermediate/high-grade non-Hodgkin’s lymphoma, the Company
continues to discuss the path forward for approval with the PMDA.
[Anticancer agents: SyB L-1101 (intravenous formulation) and SyB C-1101 (oral formulation), generic name: rigosertib
sodium]Regarding these agents, for which a license agreement was entered into in July 2011, the Company has changed theirgeneric name from “rigosertib” to “rigosertib sodium” in accordance with the notice of decision on its Japanese Accepted
Names for Pharmaceuticals (JAN) received in October 2016. For the global Phase III trial of the intravenous formulation ofrigosertib sodium conducted by Onconova Therapeutics, Inc. (Head office: Pennsylvania, U.S.; “Onconova”), the U.S.
Licensor, the Company is in charge of the clinical development in Japan and started the domestic trial in December 2015.
The global Phase III trial is conducted with clinical trial sites in more than ten countries worldwide, for higher-risk
myelodysplastic syndromes (HR-MDS) which do not respond to the current standard treatment with hypomethylating
agents (HMAs) or which relapse after treatment under the current standard of care (“primary HMA failure”). The Company
completed the first patient enrollment in Japan in July 2016. Enrollments are currently accumulating.
Regarding the oral formulation of rigosertib, the Company started its domestic Phase I clinical trial of the oral
formulation of rigosertib sodium in combination with azacitidine (Note 1) for the target indication of HR-MDS in December
2015. However, the provision of the investigational drug of this clinical trial by Onconova has been delayed. At present,
patient enrollment has not yet been started. As soon as this issue on the provision of the investigational drug is resolved, theCompany will resume patient enrollment, complete this clinical trial as planned, and consider its participation in the global
Phase III clinical trial to be conducted by Onconova.

-1-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Note 1) About azacitidine (Vidaza®: currently marketed by Nippon Shinyaku Co., Ltd.): This drug was approved in 2011
upon successful confirmation of extended overall survival for the first time in the Phase III clinical trial for theindication of MDS, and is currently used as a first-line drug for MDS patients who have difficulties inhematopoietic stem cell transplantation.
[Patient-controlled iontophoretic transdermal system for the short-term management of acute post-operative pain: SyB P1501]
In October 2015, the Company entered into an agreement with Incline Therapeutics, Inc., a wholly-owned subsidiary of
U.S.-based The Medicines Company (Head Office: New Jersey, U.S.) for an exclusive license to develop andcommercialize in Japan SyB P-1501. The Company commenced a domestic Phase III clinical trial for SyB P-1501 in June
2016 and completed the first patient enrollment in November 2016. The Company intends to complete the Phase III clinical
trial at the earliest possible time, with the aim of obtaining approval by the end of 2019.
[New drug candidates]
The Company continued with search and evaluation activities to acquire license rights of new drug candidates in global
terms, aiming to grow into a biopharmaceutical company with both profitability and growth potential, always from a
medium-to-long-term perspective. Negotiations for multiple licensing agreements are currently underway.
Meanwhile, in May 2016, the Company established a wholly-owned subsidiary, SymBio Pharma USA, Inc. (Head office:Menlo Park, California, U.S., “SymBio Pharma USA”), as the Company’s strategic base for its overseas businessdevelopment. By actively acquiring the worldwide rights concerning new drug candidates with SymBio Pharma USA as thebase of global business, the Company will accelerate its transformation into a global specialty biopharmaceutical company
with the aim of developing and commercializing new drugs in the U.S., Japan, Europe and other major global markets.
(ii) Overseas
SyB L-0501 is also marketed in South Korea, Taiwan and Singapore, and sales in these countries have been strong.
(iii) Business results
As a result of the above, net sales totaled 2,368,112 thousand yen for the fiscal year ended December 31, 2016, primarilyreflecting product sales of TREAKISYM® in Japan. Product sales showed a year-on-year increase of 10.6%, and theCompany recorded non-recurring revenue including resulting from achieving the sales milestone of SyB L-0501 in Taiwan.
Accordingly, overall net sales rose 22.5% year-on-year.
Selling, general and administrative expenses totaled 3,031,242 thousand yen (a year-on-year decrease of 3.3%),
including research and development (“R&D”) expenses of 1,667,098 thousand yen (a year-on-year decrease of 18.1%)
primarily due to expenses associated with the clinical trial for TREAKISYM®, the intravenous and oral formulations ofrigosertib as well as SyB P-1501, and other selling, general and administrative expenses of 1,364,143 thousand yen (a yearon-year increase of 24.0%).
As a result, operating loss of 2,127,049 thousand yen was recognized for the fiscal year ended December 31, 2016
(operating loss of 2,551,662 thousand yen for the previous fiscal year). In addition, the Company recorded non-operating
expenses totaling 196,467 thousand yen primarily comprising foreign exchange loss of 158,514 thousand yen, stock
issuance costs of 11,658 thousand yen and commission fees of 8,975 thousand yen, and non-operating income totaling
6,710 thousand yen primarily due to interest income of 5,235 thousand yen and dividends income of insurance of 1,221
thousand yen. This resulted in an ordinary loss of 2,316,806 thousand yen (ordinary loss of 2,630,386 thousand yen for theprevious fiscal year) and net loss of 2,313,233 thousand yen (net loss of 2,632,095 thousand yen for the previous fiscal year).
Segment information has been omitted as the Company operates within a single segment of the pharmaceutical industry
which includes the development and commercialization of drugs, manufacturing, marketing and other related activities.
(Forecast for FY 2017)
The Company expects net sales of 2,903 million yen in FY 2017, a 22.6% increase from FY 2016, mainly as a result ofgrowth in sales of TREAKISYM® in Japan and overseas. Meanwhile, in R&D, along with its efforts for development
aimed at obtaining marketing approval for the intravenous and oral formulations of rigosertib as well as SyB P-1501, theCompany plans to continue active discussions for additional indications of TREAKISYM®. With the aim of further
enhancing its corporate value in the long-term, the Company will consider negotiating license agreements for new drugcandidates and will advance the development of its pipeline as a whole. To this end, the Company anticipates R&D-2-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

expenses of 2,286 million yen (1,667 million yen in FY 2016) and selling, general and administrative expenses of 4,062
million yen (3,031 million yen in FY 2016), including R&D expenses.
Major development plans of the Company’s pipeline are as follows:[TREAKISYM®]
Regarding recurrent/refractory intermediate/high grade non-Hodgkin’s lymphoma, the Phase II clinical trial has been
completed, and the Company continues to discuss the path forward for approval with the PMDA.
[Intravenous and oral formulation of rigosertib]
As for the intravenous formulation of rigosertib, the Company is currently accumulating patient enrollments in Japan aspart of the global Phase III trial, and will continue to actively pursue development.
As for the oral formulation of rigosertib, the Company will resume the domestic Phase I clinical trial in combination
with azacitidine once the provision of the investigational drug commences, and will aim for first patient enrollment at an
early date. The Company will look into development for the target indication of transfusion-dependent lower-risk MDS,
while Onconova is making progress with development.
[Patient-controlled iontophoretic transdermal system for the short-term management of acute post-operative pain: SyB P1501]
With respect to SyB P-1501 for which a license agreement was concluded in October 2015, the Company completed first
patient enrollments in November 2016, and will actively accumulate enrollments, in an effort to swiftly complete the Phase
III clinical trial.
As a result of these planned activities, net sales of 2,903 million yen, operating loss of 3,238 million yen, ordinary loss of
3,303 million yen, and net loss of 3,306 million yen are projected for FY 2017.

(2) Financial position analysis(Analysis of assets, liabilities, net assets, and cash flow)
Total assets as of December 31, 2016 stood at 6,878,384 thousand yen, an increase of 1,894,095 thousand yen from theprevious fiscal year end. This was primarily due to increases of 1,457,886 thousand yen in cash and deposits, 186,728 thousand
yen in accounts receivable-trade, 139,695 thousand yen in merchandise and finished goods, 40,513 thousand yen in prepaid
expenses, 13,888 thousand yen in lease and guarantee deposits, 12,381 thousand yen in tools, furniture and fixtures, net, 11,603
thousand yen in forward exchange contracts and 10,421 thousand yen in long-term prepaid expenses, offsetting decreases of
13,173 thousand yen in advances paid and 8,521 thousand yen in software. Liabilities stood at 1,393,514 thousand yen, an
increase of 841,037 thousand yen from the previous fiscal year end, primarily reflecting increases of 450,000 thousand yen inbonds payable, 368,819 thousand yen in accounts payable-other, and 22,403 thousand yen in income taxes payable, offsetting adecrease of 14,999 thousand yen in forward exchange contracts.
Under net assets, the decrease of 2,313,233 thousand yen in retained earnings (accumulated deficits) due to recording of net
loss was offset mainly by an increase of 1,617,522 thousand yen in common stock, an increase of 1,617,522 thousand yen inlegal capital surplus and an increase of 131,247 thousand yen in stock acquisition rights; thus, total net assets increased by
1,053,058 thousand yen from the previous fiscal year end to 5,484,870 thousand yen. As a result, the equity ratio decreased by
9.4 percentage points from the previous fiscal year end to 73.5%.
Cash and cash equivalents (“cash”) as of December 31, 2016 stood at 5,719,325 thousand yen, an increase of 1,457,886
thousand yen from the previous fiscal year end. This was mainly due to a cash increase resulting from issuance of bonds withstock acquisition rights, despite a cash decrease resulting from loss before income taxes.
Cash flow from each activity and factors for this fiscal year end are as follows:-3-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Cash flow from operating activities)
Cash flow from operating activities showed an overall decrease of 1,960,089 thousand yen (a decrease of 2,271,686
thousand yen in the previous fiscal year) due to decreasing factors such as loss before income taxes of 2,309,433 thousand
yen, an increase in accounts receivable-trade of 186,728 thousand yen, an increase in inventories of 139,695 thousand yen, an
increase in prepaid expenses of 40,513 thousand yen, an increase in consumption taxes receivable of 34,766 thousand yen andan increase in long-term prepaid expenses of 10,421 thousand yen, despite increasing factors such as an increase in accounts
payable-other of 357,949 thousand yen, foreign exchange losses of 196,365 thousand yen, share-based compensation expensesof 137,010 thousand yen, and depreciation of 25,649 thousand yen.
(Cash flow from investing activities)
Cash flow from investing activities showed an overall decrease of 43,836 thousand yen (an increase of 1,489,141 thousand
yen in the previous fiscal year) mainly due to purchase of property, plant and equipment of 23,856 thousand yen and paymentsof lease and guarantee deposits of 15,923 thousand yen.
(Cash flow from financing activities)
Cash flow from financing activities showed an increase of 3,658,177 thousand yen (a decrease of 2,632 thousand yen in theprevious fiscal year) due mainly to proceeds from issuance of bonds with stock acquisition rights of 3,000,000 thousand yen
and proceeds from issuance of stock resulting from exercise of stock acquisition rights of 678,018 thousand yen.
(Index trend related to cash flow)

Equity ratio (%)
Equity ratio on a fairmarket value basis (%)
Debt redemption period(years)Interest coverage ratio

8th Term

9th Term

10th Term

11th Term

12th Term

Fiscal year ended

Fiscal year ended

Fiscal year ended

Fiscal year ended

Fiscal year ended

December 2012

December 2013

December 2014

December 2015

December 2016

88.6

95.4

90.7

82.9

73.5

104.3

151.4

155.1

150.8

165.1

－

－

－

－

－

－

－

－

－

－

Equity ratio: Equity (total shareholders’ equity)/total assets
Equity ratio on a fair market value basis: Total market value of common stock/total assets
Debt redemption period: Interest-bearing debt/cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities/interest payments(Notes)
1. Total market value was calculated based on the number of shares issued, excluding treasury stocks.
2. Debt redemption period and interest coverage ratio are not available due to negative cash flow from operating
activities.

(3) Basic policies concerning profit distribution and dividends
Since the foundation of the Company, dividends have not been distributed.
Although the Company has recorded product sales of TREAKISYM®, the Company continues to use funds for development
activities. Therefore, it is our policy to attempt to improve the balance sheet and retain funds for sustainable development
activities rather than profit distribution. However, we recognize that the return of profit to shareholders is an importantmanagement issue and will consider the distribution of profit based on future business performance and financial conditions.
The articles of incorporation state that the Company can pay an interim dividend, based on a corporate resolution by the Boardof Directors, on June 30 every year as the record date. The Company can also distribute surplus by designating a record date inaddition to year end and interim dividends. The decision making body is the Board of Directors for the interim dividend, andshareholders (shareholders’ meeting) for the year end dividend.

(4) Business risks
Described below are major issues that may lead to potential risks in the Company’s business activities. Issues that are notnecessarily considered significant by the Company are also disclosed in view of our commitment to actively provide information
to investors and shareholders as these issues may carry weight in making investment decisions or in understanding our business-4-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016activities. The Company is fully aware of the potential risks, and will make utmost efforts to prevent such risks frommaterializing, but should they occur, we intend to take appropriate action. However, we realize that investment decisions
regarding our stock should be made carefully by evaluating the following matters, as well as other matters mentioned in othersections of this document. We would add that the following descriptions do not purport to cover all possible risks associated withinvestment in our stock. The future perspectives mentioned below reflect our understanding of our business circumstances as ofthe date of publication of this summary of financial statements.
(i) Risks associated with pharmaceutical development in general
The Company’s main business is to in-license new drug candidate compounds created by pharmaceutical companies andbioventures, and to develop these into pharmaceutical products. The R&D field of pharmaceuticals is replete with strong
competition, including pharmaceutical giants. What is more, specialty pharmaceutical companies, including the Company,
emulate each other in quality and speed within the sector. The process from development to manufacturing and marketing
involves many regulatory hurdles, necessitating a vast amount of capital input over a long period of time in business
operations. Their future prospects involve uncertainty and these risk factors are associated with the Company’s present andfuture business activities.
a) Uncertainty involved in pharmaceutical development
Generally speaking, the pharmaceutical development process leading up to the launch of a drug requires a vast amount ofexpenditure over a long period. The probability of success is by no means high. In every stage of development, it is notuncommon for a decision to be made to halt or delay progress. In pharmaceutical development, the different stages ofdevelopment have to be conducted in phases, and at each phase a decision is made regarding whether or not development
should continue. Therefore, it is not rare for a decision to be made to stop development in mid-process. The probability is
low for development to progress successfully and for a product to be launched. Even after a product is successfully
developed and launched onto the market, there remains the risk that product approval is revoked due to the potential todamage a patient’s health (for details, refer to “(f) risk associated with side effects”). To reduce these risks, the Company
aims to possess several drug candidates in its pipeline and endeavors to prioritize insofar as possible the in-licensing of drugcandidates with confirmed POC (Note 2) in human subjects. For small specialty pharmaceutical business such as theCompany’s, the impact is huge if a single drug candidate is removed from its pipeline. This could have a significant effecton the Company’s financial position, business performance, and cash flow.
(Note 2) POC (Proof of Concept) means confirming the efficacy and safety of a new drug candidate in clinical trials, andverifying the appropriateness of its concept.
b) Uncertainty of income
In order to raise income from the drugs we are developing, we need to succeed at all the stages of new drug candidate
development, namely obtaining approval from regulatory authorities, manufacturing and marketing either on our own or inpartnership with a third-party. However, we may not necessarily succeed in these activities, or even if we do succeed, we
may not be able to ensure the margin of profitability needed to continue our business. Of the products currently in thedevelopment pipeline, SyB L-0501 achieved approval for manufacturing and marketing in Japan on October 27, 2010, for
the indications of recurrent/refractory low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma, and was launched as
the anticancer agent TREAKISYM® in December 2010. For additional indications, in December 2015, we filed
supplemental New Drug Applications (sNDAs) in Japan for the target indications of first-line treatment of low-grade nonHodgkin’s lymphoma and mantle cell lymphoma, and chronic lymphocytic leukemia, and received marketing approval forchronic lymphocytic leukemia in August 2016, and for first-line treatment of low-grade non-Hodgkin’s lymphoma andmantle cell lymphoma, in December 2016. Furthermore, we have completed the Phase II clinical trial forrecurrent/refractory intermediate/high-grade non-Hodgkin’s lymphoma. With respect to rigosertib, we are currently
conducting a global Phase III clinical trial in Japan with the SyB L-1101 intravenous formulation for the target indication ofrecurrent/refractory higher-risk MDS and a Phase I clinical trial with the SyB C-1101 oral formulation in combination withazacitidine for the target indication of higher-risk MDS. For the patient-controlled iontophoretic transdermal system for the
management of acute post-operative pain SyB P-1501 for which a license agreement was concluded in October 2015, theCompany is currently conducting a Phase III clinical trial for the indication of short-term management of acute postoperative pain in the hospital. We are promoting the development of these compounds, aiming to successfully launch the
products onto the market to obtain income. In some cases, we may consider entering into an alliance with otherpharmaceutical companies in development and marketing so as to expedite the inflow of income. Notwithstanding our-5-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

efforts, these drug candidates in our pipeline will require a considerable amount of time under development before theyreach the marketplace. There is no guarantee that they will make it onto the market as viable products, or that an allianceagreement can be signed with other pharmaceutical companies. We are of the opinion that the selection of indications andthe methods of alliance and marketing identified thus far promise sufficient future profitability after considering the market
size and marketing performance of approved drugs. However, should we prove to be wrong in our assessment, or should
there be any change in the conditions on which the assessment is based and we fail to promptly adapt to such changes, there
could be a significant impact on our financial position, business performance, and cash flow.
c) Uncertainty in legislation and regulations requiring compliance, and the health insurance system
The pharmaceutical industry, the Company’s core business, is subject to various regulatory restrictions imposed by laws
and administrative guidance related to pharmaceutical drugs as well as other relevant legislation regarding all aspects ofbusiness operations (i.e., research, development, manufacturing, marketing). We formulate our business plans in accordancewith the PMD Act and other current legislative regulations as well as the health insurance system, together with drug
pricing guidelines that derive from this legislation. Notwithstanding, there is a possibility that these regulations, regulatory
systems and pricing will change before the products that we are developing reach the marketplace. If any major change
does occur, there may be a significant impact on our financial position, business performance, and cash flow.
d) Risk concerning development and marketing overseas
We conduct our pharmaceutical business in Asian and other countries globally, not exclusively in Japan, where weanticipate the growth of healthcare needs and our position in certain therapeutic areas. In overseas markets, as in Japan,
pharmaceutical development and marketing generally require a vast amount of expenditure and are associated with businessrisk. To reduce investment expenditure and business risk, we out-license the development and marketing of some of our
drug candidates to other overseas companies. Before out-licensing the rights we possess, we select a licensee after careful
due diligence and careful monitoring when necessary. The development and sales of out-licensed products are subject tobusiness conditions of the licensee or any changes in the regulatory and competitive environment in respective countries,
and may fall below initial expectations, resulting in lower milestone revenue and royalty income. In such cases, there may
be an impact on our financial position, business performance, and cash flow.
e) Competition in the pharmaceutical industry
The pharmaceutical industry is an intensely competitive sector. A large number of both Japanese and foreign
pharmaceutical companies and research institutions, including giant multinational pharmaceuticals, compete in the arena.
Technological innovation is progressing rapidly. Many competitors have a comparative advantage over the Company interms of technology, marketing and financial position. Thus, these companies may more efficiently produce and sellcompetitor products which are more effective than the Company’s developed products. This means that what transpires in
the competitive landscape with regards to development, manufacturing and marketing operations may have a significant
impact on our financial position, business performance, and cash flow.
f) Risk associated with side effects
Unexpected side effects may occur from the use of pharmaceutical products, from their clinical trial stage to postmarketing stage. When serious and unexpected side effects occur, compensation claims may arise, or depending on thesituation, there is the risk of a delay in clinical trial timelines or even discontinuation of product development. In the casewhere such side effects could lead to further damage to the health of patients, there is the risk of cancellation of approval or
discontinuation of sales. Regarding compensation claims, the Company has in place the liability insurance necessary tominimize the financial damage should such claims arise. However, this does not exclude the possibility that thecompensation awarded exceeds the amount insured. If this should occur, it could have a significant impact on the
Company’s financial position, business performance, and cash flow.
g) Product liability
The development and manufacture of pharmaceutical products involves product liability risk. If in the future any
products that we have developed cause damage to health or any adverse events are discovered during clinical trials,
manufacturing, sales or marketing of the drug, the Company will be subject to product liability. This may have a significant
impact on the Company’s financial position, business performance, and cash flow. Indeed, if a product liability suit is filed
against the Company, the Company’s corporate image could be damaged, leading to a loss of confidence in the Company
and the drugs it develops, impacting future business.

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SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(ii) Risk in business operationsa) Risk concerning the Company’s business model
The Company does not own research and manufacturing facilities, instead, mainly targeting orphan drugs (Note 3) in theareas of oncology, hematology and pain management, in-licensing drug candidates having POC established in humansubjects from pharmaceutical companies and bioventures, developing and marketing pharmaceutical products in Japan,
Asian and other countries globally (China, South Korea, Taiwan, Singapore, etc.). The Company has adopted a businessmodel to raise income and profit from such activities. In developing the pipeline and marketing, the Company plans toengage in alliances with other pharmaceutical companies. However, there is no guarantee that the Company cancontinuously in-license drug candidate compounds that satisfy in-house criteria and secure these partner companies. In
addition, as the Company mainly targets orphan drugs for in-licensing (Note 4), it may not be able to generate expected sales
turnover. Furthermore, in the event that development at a licensor is delayed or fails, there may be impact on thecorresponding development in Japan. These factors could impact the Company’s financial position, business performance,and cash flow. Needless to say, intense competition within the pharmaceutical sector and changes in the Company’s
financial position may force the Company to revise its business model. Should this occur, there may be a significant impact
on the Company’s business.
(Note 3) The rare-disease field is one in which the number of patients requiring drugs are small. Drugs for this field aretermed “orphan drugs.” The Japanese Ministry of Health, Labour and Welfare has established an orphan drug
designation system for drugs meeting the criteria of (1) a drug to treat a disease that affects less than 50,000
people in Japan, and (2) for which there is a great need for medical treatment. Once designation is obtained, thedrug will enjoy various advantages including shortening of the time from regulatory submission for review of the
drug to approval and the extension of the re-examination period for up to 10 years.
(Note 4) “In-licensed drug candidates” are compounds or products for which the rights of development andcommercialization are obtained from other companies.
b) Dependency on specific partners and suppliers
As a specialty pharmaceutical company without production facilities, the Company needs to depend on the supply of
product from other companies when conducting clinical trials and marketing approved drugs. Given this fact, the financial
position and production conditions of the product supplier may have a significant impact on the Company’s financial
position, business performance, and cash flow. In pipeline development and marketing, while the Company has plans to
conduct sales on its own in the future, its current business plan focuses on forming alliances with pharmaceuticalcompanies. However, if the partner company’s management situation deteriorates unexpectedly or if management policies
change, which are matters beyond the Company’s control, initial business plans may not be realized. Also, if any breach ofcontract occurs that necessitates the termination of the license agreement as stipulated, the alliance may also end. In suchcases, there may be a significant impact on the Company’s financial position, business performance, and cash flow.
Typically, in license agreements with partner companies, revenues to be gained before the drug reaches the marketplace
will include an upfront payment upon signing the contract, funding for co-development and milestone payments. Of these,
milestone payments are extremely unstable and unpredictable income as they are based on the attainment of predefined
results. If development progress is delayed, there may be a significant impact on the Company’s financial position, businessperformance, and cash flow.
c) Risk concerning intellectual property rights
During drug development activities, the Company makes use of various intellectual property rights. The use of theserights basically has been granted from other companies such as pharmaceuticals and bioventures. However, the possibility
remains that the Company’s in-licensed drug candidate does not succeed in the pending patent application made by thelicensor. Moreover, it is difficult to completely avoid the possible creation of an intellectual property right by a third-party
that supersedes the intellectual property right of the Company’s in-licensed drug candidate. These situations could lead to asignificant impact on the Company’s financial position, business performance, and cash flow. To date, no lawsuit has been
filed by a third-party against the Company concerning intellectual property rights, including patents in connection withproduct development. When in-licensing a product, the Company will seek advice from lawyers and conducts a thoroughdue diligence investigation through patent firms in order to reduce such intellectual property risks. Nevertheless, it isdifficult to realize full protection from the occurrence of intellectual property right disputes involving the infringement of
third-party rights, and these may have a significant impact on the Company’s financial position, business performance, and-7-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

cash flow. The candidate compounds that the Company in-licenses are not necessarily protected by patent. On the other
hand, even if a drug candidate is not protected by patent, the assignment of the compound for review by the regulatory
authorities would virtually restrict the entry of generic drugs during the review period, realizing the monopolistic protection
for a certain period of time.
d) Information protection
To reduce the risk of significant confidential information relating to pipeline development and other business activities
from leaking outside the Company, the Company engages in rigorous information protection. The Company requires
directors, Scientific Advisory Board (SAB) members, outsourcing partners, and other business partners to signconfidentiality agreements. Even with the agreement in place, directors, SAB members, outsourcing partners and otherbusiness partners may not adhere to confidentiality, and should this occur, significant confidential information may be
divulged elsewhere, which may impact the Company’s business, financial position, business performance, and cash flow.
e) Risk concerning important contracts
If any contracts that may have a significant impact on conducting the Company’s business operations are terminated due
to expiration, breach of contract or for any other reason, there may be a significant impact on the Company’s financial
condition, business performance, and cash flow.
(iii) Risk associated with organizationa) Risk of being a young company
SymBio is a young company founded in March 2005. Since inception, the Company has engaged in in-licensing
activities of drug candidates for development. The founding President and CEO built up the pharmaceutical development
business from scratch, and the Company recorded income from product sales in August 2010, for the first time in its
history. There is the possibility that business issues that SymBio has never encountered arise in the future. At the moment,
however, it is difficult to predict any changes in the external environmental factors that may affect the Company’s businessresults. Therefore, the Company considers business results for the past several years to be an inadequate reference to pass
judgment on whether or not the Company can continue to grow.
b) Risk of being a small corporation
The Company uses contract research organizations (CROs (Note 5)) in conducting R&D, thereby forming a development
framework requiring relatively small staff numbers. With progress in the development of the pipeline already in place andwith newly in-licensed drug candidates coming on line, the Company’s human resources in R&D is likely to be further
increased. However, for whatever reason should an alliance with a CRO terminate, or should the Company fail to secure theplanned number of staff or should existing staff decide to leave, the Company’s business operations may be hampered,leading to a possible impact on the Company’s financial position, business performance, and cash flow.
(Note 5) A contract research organization (CRO) is an organization to which a pharmaceutical company commissions
certain activities so as to avoid delays in the progress of its drug development activities. The details of thecommissioned activities may include monitoring to ensure that clinical studies are carried out in full accordancewith study protocols and clinical data management.
c) Dependency on a specific person
Fuminori Yoshida, the Representative Director, founding President and CEO, has played a key role since the Company’s
foundation in the implementation and execution of all operations in the Company’s business management. Thus, in theevent that he cannot continue to perform his corporate responsibilities for some unforeseen reason, this could have asignificant impact on the Company’s business operations.
d) Scientific Advisory Board (SAB)The Scientific Advisory Board (“SAB”) is an advisory panel to the Company on the potential in-licensing of new drugcandidates. The Company invites members of the panel from clinicians and scientists engaged in basic research who arehighly regarded in the healthcare industry due to their successful track records and wealth of experience. The SAB meets
two or three times a year to engage in active discussion and debate, with each member giving his/her own perspective on an
in-licensed drug candidate. The Company will continue in its efforts to acquire members of excellence for the SAB.
However, if difficulty should arise in procuring members for reasons such as the cancellation of contracts with existing-8-

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

members, retirement or refusal to renew, or should a brain drain occur, there may be an impact on the Company’s ability toevaluate and in-license quality drug candidates.
(iv) Business Resultsa) Business performance in previous years
The Company's key business indicators are given below:
Term

8th Term

9th Term

10th Term

11th Term

12th Term

Fiscal Year Ended

December 2012

December 2013

December 2014

December 2015

December 2016

Net sales (thousand
yen)

1,955,178

1,532,054

1,955,027

1,933,241

2,368,112

Operating income (loss)(thousand yen)

(1,700,273)(1,680,528)(1,303,279)(2,551,662)(2,127,049)

Ordinary income (loss)(thousand yen)

(1,729,480)(1,601,424)(1,110,316)(2,630,386)(2,316,806)

To date, with the exception of the 4th Term, the Company’s total R&D expenses and other general administrative
expenses exceeded the Company’s income, resulting in the posting of operating loss, ordinary loss and net loss. For thisreason, the Company does not consider the financial statements and indicators of previous years to provide adequate
reference data in making timely comparisons of business performance or in forecasting future business performance.
b) Expected Increase in R&D Expenditures
The Company’s R&D expenses for the past five fiscal years are provided below:
Term

8th Term

9th Term

10th Term

11th Term

12th Term

Fiscal Year Ended

December 2012

December 2013

December 2014

December 2015

December 2016

R&D expenses(thousands of yen)

1,438,125

1,052,790

774,1032,034,714

1,667,098

The Company intends to continue with R&D activities, resulting in an increase of cumulative loss for the foreseeable
future. With future increases in product sales revenue from additional indications of TREAKISYM®, the product sales
channels upon early approval for the intravenous and oral formulations of rigosertib and SyB P-1501, and the income fromalliances with pharmaceutical companies, the Company intends to improve business performance as soon as possible;
however, there is no guarantee that such assumptions will materialize and swift performance improvement realized.
c) Negative retained earnings (accumulated deficits) brought forward
SymBio is a specialty pharmaceutical company. Until products under development at the clinical stage reach the market sothat the Company can continuously earn stable income through product sales and royalty income, the Company will post ahuge upfront outlay of R&D expenditures. Due to this, with the exception of the 4th Term (2008), the Company has posted
net current losses since its foundation. At the end of the 12th Term, the fiscal year ended December 31, 2016, the Company
recorded a negative balance of 14,812,843 thousand yen as accumulated deficits brought forward. SymBio intends tobecome a profitable business entity as early as possible by advancing its quality clinical programs in a rapid, precise andefficient manner as planned. However, the possibility still exists that profits may not be generated at the time initiallyplanned. Should the Company’s business fail to develop as planned and net profits are not generated, the Company faces
the possibility of a considerable delay in negative retained earnings (accumulated deficits) brought forward turning positive.
d) Fundraising
As a specialty pharmaceutical company, the Company requires huge R&D funding. If SymBio’s business plan does nottake shape as planned and it suffers a shortfall in funding, the Company will endeavor to procure funds by changing
strategic alliances, securing new alliance contracts or issuing new stock. However, if the Company fails to generate funds
exactly when they are required, there may be serious doubt cast over the continuation of its business operations.

-9-SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016e) Net operating loss for tax purposes
The Company currently has net operating loss carryforwards for tax purposes. For this reason, the Company is not
subject to corporate tax, local inhabitant tax and local enterprise tax at the standard rates and expects this to continue forseveral terms into the future. However, if net operating loss expires earlier than expected and can no longer be used as anoffset to taxable income due to such reasons as the revision of current tax treatment of net operating loss, the Company
would become liable for the payments of corporate tax, local inhabitant tax and local enterprise tax at standard rates, which
may have an impact on net profit/loss and cash flow currently planned.
(v) Other Risksa) Profit distribution to shareholders
Since the foundation of the Company, dividends have not been distributed. SymBio is currently at the business stage ofmaking upfront investment for the development of pharmaceutical drugs and continues to prioritize the use of funds forstrengthening its financial position and for continued R&D activities. Thus, the Company has at present no plans formaking dividend payouts. However, the Company recognizes that the return of profit to shareholders is an importantmanagement issue and will consider profit distribution based on future business performance and financial condition.
b) Procurement of funds
As the Company rapidly expands its business, it expects to see an increase in development funding requirements. One
option for procuring funds is to issue new stock. By doing so, the number of outstanding stock will increase, potentiallydiluting the value per share of the Company’s stock.
c) Stock value dilution by execution of stock acquisition rights
The Company adopted the stock option plan in order to motivate and encourage higher business performance of board
directors, employees, and collaborators, and to attract human resources of excellence. In accordance with the Commercial
Code of 1890 Article 280-19, 280-20 and 280-21, and the Companies Act Article 236, 238, 239 and 240, stock acquisitionrights are granted to board directors and employees.
The Company made a resolution at the Board of Directors meeting held on December 27, 2012 to issue the first
unsecured convertible bonds with stock acquisition rights (total issue price: 1 billion yen) and the 29th warrant (total issue
price: 5.1 million yen by way of third-party allotment, total issue price of stocks when issued through the exercise of stockacquisition rights: 500 million yen). The Company made a resolution at the Board of Directors meeting held on November
14, 2014 to issue the second unsecured convertible bonds with stock acquisition rights (total issue price: 500 million yen)and the 34th warrant (total issue price 10,363 thousand yen by way of third-party allotment, total issue price of stocks whenissued through the exercise of stock acquisition rights: 1 billion yen). Moreover, the Company made a resolution at theBoard of Directors meeting held on April 6, 2016 to issue the third unsecured convertible bonds with stock acquisitionrights (total issue price: 3 billion yen) and the 39th warrant (total issue price 9,776 thousand yen by way of third-party
allotment, total issue price of stocks when issued through the exercise of stock acquisition rights: 943,592 thousand yen).
Among these warrants, as of December 31, 2016, the following remained unexercised: 9,758 units of the 34th warrant (thenumber of shares issued upon the exercise of warrants: 975,800), 104 units of the 39th warrant (the number of shares issued
upon the exercise of warrants: 4,472,000) and 6 units of the third unsecured convertible bonds with stock acquisition rights(the number of shares issued upon the exercise of warrants: 2,132,708).
As of December 31, 2016, the number of potential dilutive shares from the above-mentioned stock acquisition rights(“number of potential shares”) totaled 11,038,308 shares and comprised approximately 19.2% of the total number ofoutstanding shares and potential shares added together. There is the possibility that stock value per share for the Company
will be diluted if these potential shares are exercised in the future. To attract talent, the Company may continue to offer
similar incentives. This means that if these stock acquisition rights are exercised in the future, the stock value per share of
the Company may be diluted.
d) Stock holding by venture capitalIn general, venture capital and investment partnerships own shares for the purpose of realizing capital gains by sellingshares after IPO. There is the possibility that venture capitals and investment partnerships that own SymBio shares may sell
all or a portion of such shares, and should this occur, it could have an impact on the market price of the Company’s shares.

- 10 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016e) Risk of loss on foreign exchange
While continuously performing research on drug candidates for new development to expand its pipeline, the Company
arranges large amounts of fund procurements by means of deposits denominated in foreign currency or foreign exchange
contracts based on the assumption that deposit payments in U.S. dollars will be required upon in-licensing. Where such
assets denominated in foreign currency are stated at market value in financial statements at every year end, there is a risk ofloss from fluctuating currency valuation in the future and this may have an impact on the Company’s financial position,business performance, and cash flow.
f) Risk associated with natural disasters
Any disasters (earthquake, typhoon, fire, etc.) and plague that occur in the Company’s geographic business domain,
leading to the occurrence of human and material damage, or suspension and delay in business, fall in social credibility andcompensation issues, may have an impact on the Company’s financial position, business performance, and cash flow.

(This part is intentionally left blank)- 11 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

2. Status of corporate group
None to be reported.

3. Management policies(1) Basic policy of company management
SymBio Pharmaceuticals Limited was established in March 2005 by Fuminori Yoshida, who previously served concurrently
as Corporate VP of Amgen Inc. (Note 6) (United States) and President of Amgen K.K., a wholly owned subsidiary of Amgen Inc.,(now part of Takeda Pharmaceutical Company Limited) for 12 years since its establishment.
The Company aims to achieve social and management responsibilities by responding to unmet medical needs (Note 7) based on
the guiding principle of mutual harmony, creating an intricate symbiotic relationship between patients, physicians, scientists,
regulators and investors.
The Company regards underserved therapeutic areas with extremely significant medical needs as a business opportunity andremains focused on the areas of oncology, hematology, and pain management where high entry barriers exist due to the highdegree of specialization required. In this sense, SymBio is the first specialty pharmaceutical company (Note 8) in Japan. Rather than
exploring opportunities to in-license and develop new blockbuster drugs (with sales exceeding 100 billion yen), the Company
channels its resources into the development of drugs in underserved markets where medical needs are high despite limited patientnumbers. Securing multiple drug approvals in these key therapeutic areas will enable the Company to build a solid and diverse
pipeline to ensure business sustainability.
(Note 6) Applied Molecular Genetics, or Amgen Inc., the world’s largest company in the biopharmaceutical field, wasfounded in Thousand Oaks, California, in 1980, and started business in Japan as Amgen K.K. on May 1, 1993.
After Takeda Pharmaceutical Company Limited (“Takeda”) acquired 100% of Amgen K.K.’s stock in February
2008, its operations were merged into Takeda.
(Note 7) “Unmet medical needs” means requirements for medical treatment that have not yet been fulfilled. It refers to asituation in which no effective drugs or treatments are currently available, despite strong demand by patients
and/or physicians.
(Note 8) “Specialty pharmaceutical company” refers to a company that develops new drugs and has been given a
consistently high international evaluation for a particular field of excellence. This is based on the definition in the
Ministry of Health, Labour and Welfare’s “Vision for the pharmaceutical industry” (2002).

(2) Key performance index
In order to enhance SymBio’s enterprise value as a specialty pharmaceutical company, it is important to continually in-license
drug candidates for development, to successfully complete clinical development and secure marketing approvals in order to selldrugs in the marketplace with the establishment of a sales and support system. To this end, the Company intends to continue
aggressively investing resources into R&D activities.
For the current fiscal year end, the Company has recorded net sales from SyB L-0501 for the first time since the drug was
initially approved for sale in Japan and Singapore in 2010. However, product sales have not generated sufficient revenue to cover
the above-mentioned upfront investment at this time, and generating net profit has still to be realized. While the Company
continuously seeks stable profitability through further expansion of sales and additional indications for TREAKISYM® incollaboration with Eisai, acquisition of early approvals for the intravenous and oral formulations of rigosertib and SyB P-1501,
as well as introduction, promotion of development and acquisition of approval for new pipeline products, no performance index
targets such as ROE or ROA will be set until profits are recorded in a single year through the achievement of these measures.

(3) Pipeline
The Company currently has the following pipeline products under development: SyB L-0501, SyB L-1101, SyB C-1101 and
SyB P-1501. The Company will continue to in-license candidate drugs to expand and build its pipeline portfolio with a balanced
risk-return trade-off.
(i) [Anticancer agent: SyB L-0501 (generic name: bendamustine hydrochloride, trade name: TREAKISYM®)]
Bendamustine hydrochloride (the generic name), the active pharmaceutical ingredient of TREAKISYM®, is an anticancer
agent that has been in use for a number of years in Germany under the trade name of Ribomustin® for the treatment of non-

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SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Hodgkin’s lymphoma (Note 9), multiple myeloma, and chronic lymphocytic leukemia. The Company decided to in-license thisproduct because there is currently no effective medication for the indications of recurrent/refractory low-grade non-Hodgkin’s
lymphoma and mantle cell lymphoma. These are underserved therapeutic areas aligned with the Company’s corporate mission
and also fall within one of SymBio’s targeted therapeutic fields (hematologic cancer). Astellas Pharma GmbH, a German
subsidiary of Astellas Pharma Inc., is the worldwide licensor of bendamustine hydrochloride. Cephalon, Inc. (United States)
licensed rights to bendamustine for North America from Astellas Pharma GmbH and obtained approvals from the U.S. Foodand Drug Administration (FDA) to use the drug for the treatment of chronic lymphocytic leukemia and refractory B-cell nonHodgkin’s lymphoma in March 2008 and October 2008, respectively. Mundipharma International Corporation Limited(United Kingdom) and Janssen-Cilag (United Kingdom) are also licensed from Astellas Pharma GmbH and have obtained
exclusive rights for the development and commercialization of bendamustine in Europe and other regions, respectively. The
Company is licensed from Astellas Pharma GmbH with exclusive rights for the development and commercialization of
bendamustine in Japan, China, Hong Kong, South Korea, Singapore and Taiwan. In Japan, the drug has received approval forthe indications of recurrent/refractory low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma (October 27, 2010),
and was launched under the trade name TREAKISYM® on December 10, 2010.
For additional indications, in December 2015, the Company filed sNDAs in Japan for the target indications of first-line
treatment of low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma, and chronic lymphocytic leukemia. The
Company received approval of an sNDA for the indication of chronic lymphocytic leukemia in August 2016 and of first-line
treatment of low-grade non-Hodgkin’s lymphoma and mantle cell lymphoma in December 2016. The Phase II clinical trial forrecurrent/refractory intermediate/high-grade non-Hodgkin’s lymphoma has been completed. The Company intends tomaximize the commercial value of TREAKISYM® by further promoting life cycle management. Eisai has signed anagreement with SymBio for the right of joint development and exclusive marketing right in Japan, and is currently marketing
TREAKISYM®.
In Asia, SyB L-0501 received the approval for the indication of low-grade non-Hodgkin’s lymphoma and chronic
lymphocytic leukemia in Hong Kong in December 2009. In Hong Kong, Cephalon, Inc. has the exclusive right to develop andsell bendamustine, and is currently generating sales. In addition, approval for the indications of low-grade non-Hodgkin’s
lymphoma and chronic lymphocytic leukemia was obtained in Singapore in January 2010. In South Korea, approval for theindications of chronic lymphocytic leukemia and multiple myeloma was obtained in May 2011, and approval for the indicationof recurrent/refractory low-grade non-Hodgkin’s lymphoma was achieved in June 2014.
In South Korea and Singapore, Eisai has agreements in place with SymBio for exclusive development and marketing rights.
Eisai’s subsidiaries launched the product in Singapore and South Korea in September 2010 and October 2011, respectively.
Cephalon, Inc. is making progress with clinical development in China, and in Taiwan SymBio’s business partner,
InnoPharmax Inc. (Taiwan), achieved approval for the indications of low-grade non-Hodgkin’s lymphoma and chronic
lymphocytic leukemia in October 2011, followed by product launch in February 2012.
(Note 9) Non-Hodgkin’s lymphoma (NHL) is a cancer of the lymphatic system in which lymphocytes develop malignant
growths other than Hodgkin’s lymphoma. The majority of Japanese patients are suffering from NHL.
(ii) [Anticancer agents: SyB L-1101 (intravenous formulation) and SyB C-1101 (oral formulation) (generic name: rigosertib)]
Rigosertib is an anticancer agent with a unique type of multi-kinase inhibitory activity (Note 10). It is currently being
developed in the U.S. and Europe by a U.S. company, Onconova Therapeutics, Inc. (“Onconova”), for the target indications of
myelodysplastic syndromes (“MDS”). MDS is the pre-pathological state for malignant tumors of blood cells, which has shown
increasing numbers of patients in recent years; it frequently affects elderly people; and it is a refractory disease, with a highprobability of developing into leukemia. No effective medication is available yet, especially for recurrent/refractory MDS, andit therefore constitutes an underserved therapeutic area. In July 2011, the Company signed a license agreement with
Onconova, providing the exclusive right to develop and commercialize rigosertib in Japan and South Korea. Based on thisagreement, the Company continues to develop the intravenous (IV) rigosertib formulation for the target indication ofrecurrent/refractory higher-risk MDS and the oral formulation for each target indication of higher-risk MDS (in combination
with azacitidine) and transfusion-dependent lower-risk MDS.
In February 2014, Onconova released the results from the Phase III randomized ONTIME trial of IV rigosertib in patientswith recurrent/refractory higher-risk MDS. Treatment with IV rigosertib plus Best Supportive Care (BSC) did not demonstrate
a statistically significant improvement in median overall survival when compared to BSC only. However, a post-hoc analysis
demonstrated a statistically significant increase in median overall survival in the subset of patients who had progressed on or
failed previous treatment with hypomethylating agents (HMAs), thus demonstrating potential activity of rigosertib in these
MDS patients.

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SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Based on this, Onconova is conducting a global Phase III trial with clinical trial sites in more than ten countries worldwide,for HR-MDS patients who do not respond to treatment with HMAs (“primary HMA failure”) or who relapse after treatment
under the current standard of care.
The Company is participating in the global Phase III trial and conducting the clinical trial in Japan.
As for the oral formulation of rigosertib, Onconova has been conducting a Phase II clinical trial for the target indication oftransfusion-dependent lower-risk MDS and Phase I/II clinical trial for the indication of first-line higher-risk MDS (incombination with azacitidine).
The Company has completed its domestic Phase I clinical trial of the oral formulation of rigosertib as a monotherapy for thetarget indication of lower-risk MDS, and a Phase I clinical trial in combination with azacitidine is being conducted for thetarget indication of higher-risk MDS. The Company is considering participating in global clinical trials after completing thePhase I clinical trial. The development for the target indication of transfusion-dependent lower-risk MDS will be considered,with a view to development progress by Onconova.
While Onconova is making steady progress with development, we will look into the option of developing for indications
other than MDS. By allocating development of the intravenous and oral formulations to different indications, it is hoped that
progress will be made with development of treatment methods that are easy for patients to use, and that place sufficientimportance on the need for compliance.
(Note 10) Multi-kinase inhibitors impede the growth, proliferation and metastasis of cancer cells, thereby eradicating them.
(iii) [Patient-controlled iontophoretic transdermal system for the short-term management of acute post-operative pain: SyB P1501]
SyB P-1501 is a patient-controlled iontophoretic transdermal system for management of post-operative pain in patients. A
patient recovering from surgery in the hospital simply presses the button on the credit-card-sized device attached to the upperarm or chest, and a certain amount of ionized drug is delivered transdermally to achieve an analgesic effect without using aneedle (patient-controlled analgesia, “PCA”). The Company acquired the exclusive development and distribution rights for
SyB P-1501 in Japan from the U.S.-based The Medicines Company on October 2, 2015. Current PCA methods consist of theadministration of an analgesic agent through an intravenous needle or the use of tubes to connect a catheter in the spinal canaland a PCA pump (intravenous PCA and epidural PCA). The number of cases in Japan of post-operative pain management by
PCA is estimated to be approximately 700,000 a year. SyB P-1501 is attached to the skin, and delivers an ionized drugtransdermally to achieve an analgesic effect after the patient presses the button on the controller when they feel pain
(iontophoresis principle). The administration of an analgesic agent in this method achieves an analgesic effect in a manner as
rapid as a needle while being needle-free and painless, and for this reason it is expected to substantially reduce the physicaland mental burden on patients and improve the level of treatment satisfaction. In addition, because it is superior to traditional
PCA methods in terms of simplicity and safety, it can also be expected to lead to reductions in labor and other costs at medical
institutions. SyB P-1501 was approved by the U.S. Food and Drug Administration (FDA) on April 30, 2015, and sales havecommenced in the U.S. It was also approved by the European Medicines Agency (EMA) on November 20, 2015. In Japan, aPhase I clinical trial of SyB P-1501 targeting healthy volunteers has been completed with a confirmed safety, and theCompany initiated a Phase III clinical trial in June 2016. Establishment of innovative PCA methods using SyB P-1501 is
expected to lead to significant improvements in convenience for patients and medical professionals and QOL (quality of life)of patients undergoing treatment for post-operative pain.

(4) Medium to long-term strategy
The Company is pursuing primarily the following five strategies in order to achieve our Long Range Plan (LRP).
(i) De-risking by post-POC strategy
We in-license drug candidates for which POC (proof of concept) is already confirmed in human subjects in principle.
Accordingly, they should be drugs that are in a relatively late stage of clinical development or already on the market overseas.
The advanced development is already conducted overseas for these drug candidates and their efficacy and safety are alreadyconfirmed in human subjects, thereby reducing the development risk. We utilize existing clinical data available overseas so as
to compress development timelines, reduce the development costs, and increase the likelihood of regulatory approvals in Japanand Asian markets.

- 14 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(ii) Building a high-quality pipeline with exceptional search and evaluation capabilities
Our new drug search engine is connected to the diverse network of pharmaceutical companies and bioventures, and enables
us to select promising drug candidates from the vast amount of chemical compounds after the careful review by internal
experts. Using their wealth of experience at the forefront of research and development, Scientific Advisory Board (SAB)
members carefully evaluate and render final judgment on each drug candidate. The highly established screening process up to
the final selection of drug candidates, coupled with the post-POC strategy, reduces the development risk and compresses
timelines. It also helps to understand how satisfactorily the healthcare needs are met and to improve the accuracy of revenue
projections after the product launch.
(iii) Containment of fixed costs by labless/fabless strategy
The Company does not own any research or production facilities, which are often regarded as the main cause of fixed costs.
Once drug candidates are searched and selected, we focus on value-added activities such as the formulation andimplementation of development strategy and outsource other necessary procedures. This enables us to reduce development
costs of pharmaceutical drugs and secure a flexible financial strategy.
(iv) Realization of high business efficiency by “Blue Ocean strategy” (Note 11)
There are many cases that the standard drug used overseas cannot be prescribed in Japan or a new drug is launched in Japan
five years behind its initial approval overseas. This problem is called “drug lag” and is becoming aggravated, while the term
“cancer patient refugee” has been created. This drug lag is particularly conspicuous in our strategic drug development areas ofrefractory cancer and hematological diseases, as well as moderate to severe pain management. The market of anticancer
agents, in particular, is huge and still continues to grow with the aging population. However, anticancer agents have a wide
range of indications and they are fragmented by the type of cancer. There is only a limited number of patients in sometherapeutic areas depending on the type of cancer. The therapeutic area of pain management is an unsatisfied area with many
current cases of undertreatment. Many patients who suffer pain are the elderly, and the pain management market is expected to
grow. An extremely high degree of specialization is required for the development of new agents in these therapeutic areas,
which are often financially unattractive for larger pharmaceutical companies to pursue despite the high degree of development
difficulty. This partially accounts for the causes for the drug lag. Contrarily, once a new drug succeeds in receiving anapproval and reaching the market for these therapeutic areas, we would be able to achieve superior growth and profitability
due to the lack of fierce competition by continuously expanding the indications and bringing new products into the market.
(Note 11) “Blue Ocean strategy” means a strategy of redefining the market, avoiding marketplaces where there is fierce
competition to snatch pieces of a finite market-share “pie,” termed “red oceans,” and instead creating a “blueocean,” which is a competition-free, entirely unexploited market, enabling profits to be maximized while providing
customers with high-value products and services.
(v) Going global beyond Asia
The Company has been operating its businesses in Asia centered on Japan. However, there would be no significant growth
expected if we stay in Asia, amid a rapidly changing environment surrounding healthcare in Japan. The Company will carryout search and evaluation activities to advance new drug candidates in light of global development.

- 15 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(5) Issues to be addressed by the Company
The Company has a commitment to improve the following issues as a priority challenge for management.
(i) Further expansion of the pipeline
In order to enhance the enterprise value as a specialty pharmaceutical company, we need to expand the pipeline throughcontinually in-licensing of new drug candidates for development.
Clinical trials are underway for our anticancer agents: SyB L-0501, SyB L-1101 (intravenous formulation)/SyB C-1101(oral formulation) and patient-controlled iontophoretic transdermal system for the management of acute post-operative pain
SyB P-1501. Currently we are in discussion with counterparties regarding the in-licensing of several new drug candidates, andwill continue with our active efforts to in-license new products in order to further expand our pipeline.
(ii) Pursuit of life cycle management in the existing pipeline
In order to enhance the enterprise value, it is critical to maximize returns from each drug under development by adding
indications for new drug candidates after their initial introduction in pursuit of life cycle management.
TREAKISYM® has received approval for manufacturing and marketing with the indications of recurrent/refractory lowgrade non-Hodgkin’s lymphoma and mantle cell lymphoma, chronic lymphocytic leukemia and first-line treatment of lowgrade non-Hodgkin’s lymphoma and mantle cell lymphoma. The Phase II clinical trial was completed for recurrent/refractoryintermediate/high-grade non-Hodgkin’s lymphoma.
Progress is being made with development of intravenous and oral rigosertib formulations for the indication of
myelodysplastic syndromes (MDS). No useful therapeutic agents are currently available for this indication, so it is an areawith very high unmet medical needs.
As for the global Phase III trial of the intravenous formulation for the target indication of recurrent/refractory higher-risk
MDS conducted by Onconova, the Company is conducting its clinical trial in Japan. As for the oral formulation, the Company
has completed the domestic Phase I clinical trial as a monotherapy for the target indication of lower-risk MDS, and a Phase I
clinical trial in combination with azacitidine for the target indication of higher-risk MDS is being conducted. The Company isconsidering participating in global clinical trials after completing the Phase I clinical trial. The development for the target
indication of transfusion-dependent lower-risk MDS will be considered, with a view to development progress by Onconova.
For the patient-controlled iontophoretic transdermal system for the management of acute post-operative pain SyB P-1501,
approval has already been granted for manufacturing and marketing by U.S. and European regulatory agencies, and thedomestic Phase I clinical trial has also been completed, and the Phase III clinical trial is underway. The Company is aiming forthe prompt acquisition of manufacturing and marketing approval for this drug and will consider subsequent additional
indications.
The aim for the future is to maximize the value of TREAKISYM®, rigosertib, and SyB P-1501 by further expansion ofindications and by following through with life cycle management.
(iii) Global expansion for further growth
The Company has been operating its businesses not only in Japan, but also in other Asian countries including China, Korea,
Taiwan, and Singapore as our important strategic geographic domains.
However, with expanding medical expenditures due to the aging population in Japan, and the advent of the “era of genericdrugs comprising 80% of all drugs dispensed” as a national strategy, the business environment for innovator drug developers
is expected to remain severe. Also, similar policies will possibly be implemented in other Asian countries as well.
Under these circumstances, the Company will promote global expansion aiming for further growth. The Company will carryout the search, evaluation, and negotiation activities for new drug candidates, in order to acquire global rights on suchcandidates, utilizing its experience fostered through its business development in Asia.
(iv) Securing personnel
The Company places the highest priority on personnel as the Company’s principal management resource. We cannot makesuperior achievements in exploring and developing new drugs without talent. We have been continually recruiting talented
people, especially after being listed; we have recruited the best and brightest people in order to strengthen the management
organization. Going forward, we plan to further strengthen our human resources by providing development programs such as
OJT and other trainings.

- 16 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(v) Financial issue
It is necessary for the Company to raise funds required for business activities such as R&D expenditures as the pipeline
development progresses and the number of drug candidates increases. Therefore, we make every effort to strengthen thefinancial base by continually diversifying the method for fund procurement and reducing costs through budget control.

(6) Other important matters concerning the Company’s management
Issuance of the third unsecured convertible bonds with stock acquisition rights and the 39th stock acquisition rights
In order to secure the funds necessary for its research and development activities, the Company made a resolution at theBoard of Directors meeting held on April 6, 2016 to issue the third unsecured convertible bonds with stock acquisition rights(total issue price: 3 billion yen) and the 39th warrant (total issue price 9,776 thousand yen by way of third-party allotment,
total issue price of stocks when issued through the exercise of stock acquisition rights: 943,592 thousand yen), andcompleted the payment of 3,009,776 thousand yen.

4. Basic views on selection of accounting standards
Over the near term, the Company will prepare its financial statements based on Japanese GAAP, taking into account the interperiod comparability of financial statements and comparability across organizations.
In terms of the application of International Financial Reporting Standards (IFRS), the Company will take appropriate measures inconsideration of circumstances in Japan and overseas.

- 17 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

5. Financial statements(1) Balance sheets(Unit: thousands of yen)
FY 2015
FY 2016(as of December 31, 2015) (as of December 31, 2016)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Merchandise and finished goods
Supplies
Prepaid expenses
Advances paid
Consumption taxes receivable
Forward exchange contracts
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Total property, plant and equipment
Intangible assets
Software
Software in progress
Lease assets
Total intangible assets
Investments and other assets
Shares of subsidiaries
Long-term prepaid expenses
Lease and guarantee deposits
Total investments and other assets
Total non-current assets
Total assets- 18 -

4,261,438
300,742
133,029167
38,591
79,639－－13,1704,826,778

5,719,325
487,471
272,725
663
79,104
66,46534,766
11,603
12,886
6,685,011

24,521(2,313)
22,20852,293(21,545)
30,747
52,95635,846(4,451)
31,39569,497(26,367)
43,12974,52450,506900
594
52,001

41,985－－41,985－
1,227
51,32652,553
157,510
4,984,289

0
11,64965,21476,863
193,373
6,878,384

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Unit: thousands of yen)
FY 2015
FY 2016(as of December 31, 2015) (as of December 31, 2016)
Liabilities
Current liabilities
Accounts payable-trade
Lease obligations
Accounts payable-other
Income taxes payable
Forward exchange contracts
Other
Total current liabilities
Non-current liabilities
Bonds payable
Provision for retirement benefits
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings (accumulated deficits)
Other retained earnings
Retained earnings (accumulated deficits)
brought forward
Total retained earnings (accumulated deficits)
Treasury stock
Total shareholders’ equity
Stock acquisition rights
Total net assets
Total liabilities and net assets- 19 -

319,866642
183,690
14,183
14,99917,558550,940

321,860－
552,510
36,586－
31,161
942,118

－
1,537
1,537
552,477

450,000
1,396
451,396
1,393,514

8,330,775

9,948,298

8,300,775
8,300,775

9,918,298
9,918,298(12,499,609)(14,812,843)(12,499,609)(17)
4,131,924
299,887
4,431,811
4,984,289(14,812,843)(17)
5,053,735
431,135
5,484,870
6,878,384

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(2) Statements of operations
FY 2015(from January 1, 2015
to December 31, 2015)
Net sales
Net sales of goods
Rights income
Total net sales
Cost of goods soldBeginning goods
Cost of purchased goods
Purchase allowance and returns
Total
Ending goods
Cost of goods sold
Gross profit
Selling, general and administrative expenses *1 *2
Operating loss
Non-operating income
Interest income
Interest on securities
Dividends income of insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission fees
Stock issuance costs
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss
Extraordinary gain
Gain on reversal of stock acquisition rights
Total extraordinary gain
Extraordinary loss
Loss on retirement of non-current assets *3
Total extraordinary losses
Loss before income taxes
Income taxes-current
Total income taxes
Net loss- 20 -(Unit: thousands of yen)
FY 2016(from January 1, 2016
to December 31, 2016)

1,933,241－
1,933,241

2,137,337
230,775
2,368,112

244,588
1,241,552
2,867
1,483,274
133,029
1,350,244
582,996
3,134,659(2,551,662)

133,029
1,606,489
2,873
1,736,644
272,725
1,463,919
904,192
3,031,242(2,127,049)

12,949
3,316
1,072
24
17,363

5,235
249
1,221
4
6,710

13
9,000
160
86,242671
96,087(2,630,386)

4
8,975
11,658
158,514
17,315
196,467(2,316,806)

3,312
3,312

8,512
8,512

1,221
1,221
(2,628,295)
3,800
3,800
(2,632,095)

1,139
1,139
(2,309,433)
3,800
3,800
(2,313,233)

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(3) Statements of changes in net assets
FY 2015 (from January 1, 2015 to December 31, 2015)

Commonstock

Balance at the
beginning of the year
Changes of items during
the yearIssuance of new shares(exercise of stockacquisition rights)
Net loss
Net changes of items
other thanshareholders’ equity
Total changes of
items during the year
Balance at the end of
the year

8,330,775(Unit: thousands of yen)
Shareholders’ equity
Retained earnings
Capital surplus(Accumulated deficits)
Otherretainedearnings
Total
Total retained Treasury
shareholders’
Legal
Total
Retainedstock
earnings
equitycapitalcapitalearnings(accumulated
surplussurplus (accumulated
deficits)
deficits)brought
forward8,300,775

8,300,775(9,867,514)(17)

6,764,019

－

－

－

－

8,330,775

8,300,775

8,300,775(2,632,095)(2,632,095)(2,632,095)(2,632,095)－(2,632,095)(12,499,609) (12,499,609)(17)

4,131,924(Unit: thousands of yen)
Valuation and translation
adjustments
Total
Unrealized
valuation
holding gain
and(loss) on
translation
securities
adjustments
Balance at the
beginning of the year
Changes of items during
the yearIssuance of new shares(exercise of stockacquisition rights)
Net loss
Net changes of items
other thanshareholders’ equity
Total changes of
items during the year
Balance at the end of
the year(9,867,514)

(744)

(744)

Stock
acquisitionrightsTotal net
assets200,300

6,963,576－(2,632,095)
744

744

99,586

100,330

744

744

99,586(2,531,764)－－

299,887

4,431,811- 21 -(2,632,095)

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

FY 2016 (from January 1, 2016 to December 31, 2016)(Unit: thousands of yen)

Commonstock

Balance at the
beginning of the year
Changes of items during
the yearIssuance of new shares(exercise of stockacquisition rights)
Net loss
Net changes of items
other thanshareholders’ equity
Total changes of
items during the year
Balance at the end of
the year

Shareholders’ equity
Retained earnings
Capital surplus(accumulated deficits)
Otherretainedearnings
Total
Total retained Treasury
shareholders’
Legal
Total
Retainedstock
earnings
equitycapitalcapitalearnings(accumulated
surplussurplus (accumulated
deficits)
deficits)brought
forward8,330,775

8,300,775

8,300,775

1,617,522

1,617,522

1,617,522(17)

4,131,924

3,235,044(2,313,233)(2,313,233)(2,313,233)

1,617,522

1,617,522

1,617,522(2,313,233)(2,313,233)－

921,811

9,948,298

9,918,298

9,918,298(14,812,843) (14,812,843)(17)

5,053,735(Unit: thousands of yen)

Balance at the
beginning of the year
Changes of items during
the yearIssuance of new shares(exercise of stockacquisition rights)
Net loss
Net changes of items
other thanshareholders’ equity
Total changes of
items during the year
Balance at the end of
the year(12,499,609) (12,499,609)

StockacquisitionrightsTotal net
assets299,887

4,431,811

3,235,044(2,313,233)
131,247

131,247

131,247

1,053,058

431,135

5,484,870- 22 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(4) Statements of cash flow
FY 2015(from January 1, 2015
to December 31, 2015)
Net cash provided by (used in) operating activities
Loss before income taxes
Depreciation
Amortization of guarantee deposits
Share-based compensation expenses
Increase (decrease) in provision for retirement benefits
Interest income
Interest expenses
Foreign exchange losses (gains)
Commission fees
Stock issuance costs
Gain on reversal of stock acquisition rights
Loss on retirement of non-current assets
Decrease (increase) in accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Decrease (increase) in advances paid
Decrease (increase) in consumption taxes receivable
Decrease (increase) in other current assets
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in other current liabilities
SubtotalInterest and dividends income received
Commitment fee paid
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Proceeds from withdrawal of time deposits
Proceeds from redemption of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Net cash provided by (used in) investing activities- 23 -(Unit: thousands of yen)
FY 2016(from January 1, 2016
to December 31, 2016)(2,628,295)
24,244(1,092)
102,898(97)(16,265)
1345,4599,000
160(3,312)
1,221(28,085)
111,559(1,821)(19,798)
19,97449,358124
13,87051,013(6,632)(2,276,502)
17,654(9,024)(13)(3,800)(2,271,686)(2,309,433)
25,6492,035
137,010(141)(5,485)
4
196,365
8,975
11,658(8,512)
1,139(186,728)(139,695)(40,513)
13,173(34,766)(27,297)(10,421)
1,993
357,949
53,763(1,953,277)
5,967(8,975)(4)(3,800)(1,960,089)

600,000
900,000(22,546)(1,235)－(3,497)
16,4201,489,141－－(23,856)(4,056)(0)(15,923)－(43,836)

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Unit: thousands of yen)
FY 2016(from January 1, 2016
to December 31, 2016)

FY 2015(from January 1, 2015
to December 31, 2015)
Net cash provided by (used in) financing activities
Proceeds from issuance of stock resulting from exerciseof stock acquisition rights
Proceeds from issuance of bonds with stock acquisitionrightsProceeds from issuance of stock acquisition rights
Payments for issuance of common stock
Repayments for lease obligations
Other payments
Net cash provided by (used in) financing activities
Effect of foreign exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year *1- 24 -－

678,018－

3,000,000－(1,850)(692)(90)(2,632)

9,776(11,658)(642)(17,315)
3,658,177(45,459)(196,365)(830,636)
5,092,075
4,261,438

1,457,886
4,261,438
5,719,325

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(5) Events and conditions that indicate there could be substantial doubt about the going concern assumption
None to be reported.

(6) Significant accounting policies
1.

Valuation basis and method of marketable and investment securities
Available-for-sale securities with determinable market value
Available-for-sale securities with a determinable market value are stated at fair value with any changes in
unrealized holding gain or loss, net of applicable income taxes, included directly in shareholders’ equity.
Cost of securities sold is calculated by the moving-average method.
Available-for-sale securities without determinable market value
Available-for-sale securities without determinable market value are stated at cost determined by themoving-average method.

2.

Valuation basis and method of derivative transactions
Derivative financial instruments are stated at fair value.

3.

Valuation basis and method of inventories
Inventories held for the purpose of ordinary sale are measured at the lower of cost determined by theweighted-average method or net selling value.

4.

Depreciation of non-current assets(1) Property, plant and equipment (excluding lease assets)
Depreciation of property, plant and equipment is computed by the straight-line method.
The useful lives of major property, plant and equipment are summarized as follows:
Buildings
3 to 18 years
Tools, furniture and fixtures
5 to 15 years(2) Intangible assets (excluding lease assets)
Amortization of intangible assets is computed by the straight-line method.
Capitalized software costs are being amortized over the period of the internal use of 5 years.
(3) Lease assets
Depreciation of lease assets is computed by the straight-line method over the lease term with no residual
value.

5.

Deferred assets
Stock issuance costs and bond issuance costs are charged to income upon payment.

6.

Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into yen at the spot exchange
rates prevailing on the balance sheet dates, and resulting gains or losses are credited or charged to income.

7.

Basis for reserves and provisions(1) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount determined based on the historicalexperience of bad debt with respect to ordinary receivables and an estimate of uncollectible amounts
determined by reference to specific doubtful receivables from customers which are experiencing financial
difficulties.
For FY 2016, no allowance for doubtful accounts is provided due to no historical experience of bad debt
and no receivable balances that are deemed uncollectible.
(2) Provision for retirement benefits
The provision for retirement benefits is provided at an amount to be required as of the balance sheet date.
The Company applies the simplified method to calculate amounts of retirement benefit obligation andretirement benefit expenses. That is, amounts of retirement benefit obligation are the payments required forvoluntary retirement as of each fiscal year end.

- 25 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 20168.

Cash and cash equivalents in the statements of cash flow
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time andshort-term investments with a maturity of three months or less that can easily be converted to cash and are
subject to little risk of change in value.

9.

Other significant basis for the preparation of financial statements
Accounting for consumption tax
Transactions are recorded at amounts exclusive of consumption tax.

(This part is intentionally left blank)- 26 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(7) Notes on financial statements(Balance sheets)
1. The Company has overdraft and commitment line contracts with three banks in a business relationship to efficiently
procure working capital. The status of the bank overdraft and loan commitments based on these contracts at the end ofeach fiscal year is as follows:(Unit: thousands of yen)
FY 2015(as of December 31, 2015)

FY 2016(as of December 31, 2016)

1,350,000

1,350,000－
1,350,000－
1,350,000

Total amounts of bank overdraft limit andloan commitment line
Balance of borrowing outstanding
Unused balance(Statements of operations)* 1 The selling expenses ratio is roughly 0.4% and 0.6% for FY 2015 and FY 2016, respectively, and theadministrative expenses ratio is roughly 99.6% and 99.4% for FY 2015 and FY 2016, respectively.
Major expense items and amounts are as follows.
(Unit: thousands of yen)
FY 2015
FY 2016(from January 1, 2015
(from January 1, 2016
to December 31, 2015)
to December 31, 2016)
140,865
346,954867
2,034,714
11,625

Directors’ compensation
Salaries
Retirement benefit expenses
Research and development expenses
Depreciation expenses

150,289477,271
1,172
1,667,098
10,822* 2 Total amounts of research and development expenses included in general and administrative expenses(Unit: thousands of yen)
FY 2015
FY 2016(from January 1, 2015
(from January 1, 2016
to December 31, 2015)
to December 31, 2016)
2,034,714
1,667,098* 3 Details of loss on retirement of non-current assets

Tools, furniture and fixtures
Software

FY 2015(from January 1, 2015
to December 31, 2015)
1,037
183

- 27 -(Unit: thousands of yen)
FY 2016(from January 1, 2016
to December 31, 2016)
01,139

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Statements of changes in net assets)
FY 2015 (from January 1, 2015 to December 31, 2015)
1. Shares issued and outstanding/Treasury stock(Unit: number of shares)
At the beginning of
the fiscal year

IncreaseAt the end of the
fiscal year

Decrease

Shares issued
Common stock

32,390,923－－

32,390,923

Total

32,390,923－－

32,390,923

Common stock

75

－

－

75

Total

75

－

－

75

Treasury stock

2. Stock acquisition rights and treasury acquisition rights
Balance
as ofDecemberAt the end of 31, 2015
Decrease
the fiscal (thousands
yearof yen)Number of shares to be issued
Company

Description

The 29th warrant
The
The 34th warrant
Company
Stock acquisitionrights as stock options
Total

Type ofshares to beissuedAt thebeginning of
the fiscal
year

Increase

Common stock795,750－－

795,750

3,060

Common stock

3,030,400－－

3,030,400

10,363－－－－

286,4633,826,150－－

3,826,150

299,887－(Note) The information about type of shares to be issued and the number of shares to be issued is described in “Stock
options.”
3. Dividends
None to be reported.

- 28 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

FY 2016 (from January 1, 2016 to December 31, 2016)
1. Shares issued and outstanding/Treasury stock(Unit: number of shares)
At the beginning of
the fiscal year

IncreaseAt the end of the
fiscal year

Decrease

Shares issued
Common stock

32,390,923

14,139,901－

46,530,824

Total

32,390,923

14,139,901－

46,530,824

Common stock

75

－

－

75

Total

75

－

－

75

Treasury stock(Note) The increase in common stock of 14,139,901 shares was due to exercise of stock acquisition rights.
2. Stock acquisition rights and treasury acquisition rights
Balance
as ofDecemberAt the end of 31, 2016
Decrease
the fiscal (thousands
yearof yen)Number of shares to be issued
CompanyThe
Company

Description

Type ofshares to beissuedAt thebeginning of
the fiscal
year

Increase

The 29th warrant

Common stock795,750－

795,750－－

The 34th warrant

Common stock

3,030,400－

2,054,600

975,800

3,337

The 39th warrant

Common stock－

4,472,000－

4,472,000

9,776－ 14,218,009 12,085,301

2,132,708(Note 2)－－

418,022

3,826,150 18,690,009 14,935,651

7,580,508

431,135

The third unsecured
bonds withconvertible bond type Common stock
stock acquisitionrightsStock acquisition－rights as stock options
Total

－

－

(Notes) 1. The information about type of shares to be issued and the number of shares to be issued is described in“Stock options.”
2. The third unsecured bonds with convertible bond type stock acquisition rights are computed by the lumpsum method.
3. Dividends
None to be reported.

- 29 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Statements of cash flow)*1 Cash and cash equivalents as of the fiscal year end are reconciled to the accounts reported in the balance sheets asfollows:(Unit: thousands of yen)
FY 2015(from January 1, 2015
to December 31, 2015)
4,261,438
4,261,438

Cash and deposits
Cash and cash equivalents
2

FY 2016(from January 1, 2016
to December 31, 2016)
5,719,325
5,719,325

Details of significant non-cash transactions
Exercise of stock acquisition rights for bonds with convertible bond type stock acquisition rights:(Unit: thousands of yen)
FY 2015(from January 1, 2015
to December 31, 2015)

Amount of increase in common stock due to theexercise of stock acquisition rights
Amount of increase in capital surplus due to the exerciseof stock acquisition rights
Amount of decrease in corporate bonds due to theexercise of stock acquisition rights

FY 2016(from January 1, 2016
to December 31, 2016)－

1,275,000－

1,275,000－

2,550,000(Lease transactions)
Finance lease transactions
Finance lease transactions other than those which transfer the ownership of leased property(1) Description of lease assets
Intangible assets –Software(2) Depreciation and amortization of lease assets
Depreciation and amortization of lease assets are described in “(6) Significant accounting policies, 4.
Depreciation of non-current assets.”- 30 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Financial instruments)
1. Financial instruments(1) Policies for financial instruments
The Company procures the funds necessary in light of the pipeline development plan (primarily by third-party
allotment and offering by new stock issuance). A temporary surplus fund is invested in financial instruments
which are highly safe and liquid.
As a principle, the Company does not enter into derivative transactions for speculative trading purposes but uses
them within the scope prescribed in the Company’s internal rules.
(2) Types of financial instruments and related risks
Operating receivables such as accounts receivable-trade and advances paid in connection with joint development
are exposed to the credit risk of customers and joint development partners. Operating receivables denominated inforeign currencies are exposed to foreign exchange fluctuation risk.
The Company intends to invest in marketable and investment securities which have a relatively low risk offalling below initial investments, however, such might entail a finite risk.
Operating payables such as accounts payable-trade and accounts payable-other are mostly due within 75 days.
Operating payables denominated in foreign currencies are exposed to foreign exchange fluctuation risk.
The Company uses derivative transactions to avoid foreign exchange fluctuation risks and enters into forward
exchange contracts within the scope prescribed in the internal rules based on balances of receivables and payables
denominated in foreign currencies as well as the actual volume of exports and imports transactions denominated inforeign currencies.
Lease and guarantee deposits are mostly security deposits related to leased office premises and their refunds are
subject to the credit risk of the lessor.
Lease obligations are associated with the finance lease transactions that are intended to finance capital
expenditures and the longest maturity of the lease term is one year after the current fiscal year end.
Bonds with convertible bond type stock acquisition rights are used primarily for financing relating to R&D andhave a maturity of two years and four months after the current fiscal year end.
(3) Risk management for financial instruments(i) Monitoring of credit risks (the risk that customers or counterparties may default on obligations)
In accordance with the Company’s internal credit policies for managing credit risk arising from operatingreceivables, the Company’s marketing department periodically monitors the creditworthiness of major
customers and monitors due dates and outstanding balances by individual customers. In addition, theCompany is making efforts to promptly identify and mitigate risks of bad debts from customers who arehaving financial difficulties.
The Company enters into derivative transactions only with financial institutions which have a sound credit
profile in order to mitigate the counterparty risk.
(ii) Monitoring of market risk (the risk arising from fluctuations in foreign exchange rates, interest rates andothers)The Company deposits cash primarily with financial institutions with high credit ratings.
For marketable and investment securities, the Company intends to avoid risks of falling below initialinvestments by investing in securities with a satisfactory credit rating and investment period in accordancewith the Company’s internal investment policies.
The Company enters into forward exchange contracts in order to avoid foreign exchange fluctuation risks inconnection with receivables and payables denominated in foreign currencies.
Followed by appropriate authorization procedures prescribed in the Company’s internal rules, the Finance &Accounting department executes and monitors derivative transactions. Monthly transaction performances arereported to the executive management committee.

- 31 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(iii) Monitoring of liquidity risks (the risk that the Company may not be able to meet its obligations on thescheduled due date)
Based on the report from each department, the responsible department of the Company prepares and updates
its cash flow plans on a timely basis and ensures to maintain the liquidity on hand to manage liquidity risk.
(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is noquoted market price available, fair value is reasonably estimated. Since various assumptions and factors arereflected in estimating the fair value, different assumptions and factors could result in different fair value. In
addition, the notional amounts of derivatives in notes to “Derivative transactions” are not necessarily indicativeof the actual market risk involved in derivative transactions.
(5) Concentration of credit risk
As of December 31, 2016, all operating receivables are from one particular major customer.
2. Fair value of financial instruments
The carrying value on the balance sheets, fair values and their differences are as follows. The financial instruments
whose fair value is extremely difficult to determine are not included. (See Note 2.)

FY 2015 (as of December 31, 2015)(Unit: thousands of yen)
Carrying value

Fair value

Differences

4,261,438

4,261,438－(2) Accounts receivable-trade300,742

300,742－(3) Advances paid

79,63979,639－Assets, total

4,641,819

4,641,819－

319,866

319,866

－

642

643

1

(3) Accounts payable-other

183,690

183,690－(4) Income taxes payable

14,183

14,183－Liabilities, total

518,383

518,384

1

Derivative transactions, total (*)(14,999)(14,999)－(1) Cash and deposits(1) Accounts payable-trade(2) Lease obligations (current)(*) Net assets and liabilities arising from derivative transactions are presented on a net basis and net liabilities areshown in parentheses.

- 32 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

FY 2016 (as of December 31, 2016)(Unit: thousands of yen)
Carrying value

Fair value

Differences

5,719,325

5,719,325－(2) Accounts receivable-trade487,471487,471－(3) Advances paid

66,46566,465－

Assets, total

6,273,262

6,273,262－

321,860

321,860

－

－

－

－

(3) Accounts payable-other552,510552,510－(4) Income taxes payable

36,58636,586－(5) Bonds with convertible bondtype stock acquisition rights

450,000

448,935(1,064)

1,360,956

1,359,892(1,064)

11,603

11,603－(1) Cash and deposits(1) Accounts payable-trade(2) Lease obligations (current)

Liabilities, total
Derivative transactions, total (*)(*) Net assets and liabilities arising from derivative transactions are presented on a net basis and net liabilities areshown in parentheses.
(Notes)1. Fair value measurement of financial instruments and other matters related to securities and derivative transactions
Assets(1) Cash and deposits, (2) Accounts receivable-trade and (3) Advances paid
The carrying value is deemed as the fair value since these are scheduled to be settled in a short period oftime.
Liabilities(1) Accounts payable-trade, (3) Accounts payable-other and (4) Income taxes payable
The carrying value is deemed as the fair value since these are scheduled to be settled in a short period oftime.
(2) Lease obligations (current)
The fair value of lease obligations is determined at present value calculated by discounting total amounts
of principal and interests at a presumable rate used for similar new lease transactions.
(3) Bonds with convertible bond type stock acquisition rights
The fair value of bonds with convertible bond type stock acquisition rights is calculated by discounting
total amounts of principal and interests at a rate reflecting the remaining redemption period and credit risk.
Derivative transactions
See notes to “Derivative transactions.”- 33 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

2. Financial instruments whose fair value is extremely difficult to determine(Unit: thousands of yen)
FY 2015(as of December 31, 2015)
Lease and guarantee deposits

FY 2016(as of December 31, 2016)
65,214

51,326

Lease and guarantee deposits and corporate bonds are not included in the above tables since no market quote isavailable and their fair value is extremely difficult to determine.
3. The redemption schedule for monetary assets and securities with maturities
FY 2015 (as of December 31, 2015)(Unit: thousands of yen)
Due after one
Due after fiveDue in one year
Due after ten
year through five years through ten
or less
years
years
years
4,261,410－－－

Accounts receivable-trade300,742－－－

Advances paid

79,639－－－4,641,791－－－

Deposits

Total
FY 2016 (as of December 31, 2016)(Unit: thousands of yen)
Due after one
Due after fiveDue in one year
Due after ten
year through five years through ten
or less
years
years
years
5,719,293－－－

Accounts receivable-trade487,471－－－

Advances paid

66,465－－－

6,273,230－－－

Deposits

Total

4. Maturities of lease obligations and bonds with convertible bond type stock acquisition rights after the fiscal year end
FY 2015 (as of December 31, 2015)

Due in one
year or lessLease obligations(current)
Total

Due after one
year throughtwo years(Unit: thousands of yen)
Due after two Due after three Due after four
Due after five
years through years through years throughyears
three years
four years
five years

642

－

－

－

－

－

642

－

－

－

－

－

- 34 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

FY 2016 (as of December 31, 2016)(Unit: thousands of yen)
Due after two Due after three Due after four
Due after five
years through years through years throughyears
three years
four years
five years

Due in one
year or lessDue after one
year throughtwo years

Bonds with convertible
bond type stockacquisition rights－－

450,000

－

－

－

Total

－

－

450,000－－－(Derivative transactions)
1. Derivative transactions to which hedge accounting is not applied
Currency-related transactions
FY 2015 (as of December 31, 2015)(Unit: thousands of yen)Classification

Type

Portion due
after one year
Notional amountincludedhereinFair value

Unrealized gain

Forward exchange contract
OTC transactions

Buy
－

－

－

－

783,735－(14,999)(14,999)783,735－(14,999)(14,999)

U.S. dollars
Euro
Total

(Note) Fair value measurement
The fair value is measured based on the quoted prices obtained from financial institutions with which theCompany has a business relationship.
FY 2016 (as of December 31, 2016)(Unit: thousands of yen)Classification

Type

Portion due
after one year
Notional amountincludedhereinFair value

Unrealized gain

Forward exchange contract
OTC transactions

Buy
－

－

－

－

574,873－

11,603

11,603574,873－

11,603

11,603

U.S. dollars
Euro
Total

(Note) Fair value measurement
The fair value is measured based on the quoted prices obtained from financial institutions with which theCompany has a business relationship.
2. Derivative transactions to which hedge accounting is applied
None to be reported.

- 35 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Retirement benefits)
1. Outline of retirement benefit plans
The Company has adopted a defined contribution pension plan. A lump-sum payment plan (non-contributory plan) is
applied for certain employees based on the Company’s internal rules for retirement benefits.
The simplified method is applied to calculate amounts of retirement benefit obligation and retirement benefit
expenses.
2. Retirement benefit plan under simplified method(1) The reconciliation between the retirement benefit obligation at the beginning and the end of the fiscal year is asfollows.
(Unit: thousands of yen)
FY 2015(from January 1, 2015
to December 31, 2015)
Provision for retirement benefits at the beginning of the fiscal year

FY 2016(from January 1, 2016
to December 31, 2016)

1,634

1,537

Service costs

235

219

Contribution made for defined contribution pension plan

(332)

(360)

Retirement benefit obligation at the end of the fiscal year

1,537

1,396

(2) The reconciliation between the retirement benefit obligation or provision for retirement benefits and the net defined
benefit liability on the balance sheet is as follows.
(Unit: thousands of yen)
FY 2015(from January 1, 2015
to December 31, 2015)

FY 2016(from January 1, 2016
to December 31, 2016)

Unfunded retirement benefit obligation

1,537

1,396

Net defined benefit liability on the balance sheet

1,537

1,396
(Unit: thousands of yen)

FY 2015(from January 1, 2015
to December 31, 2015)

FY 2016(from January 1, 2016
to December 31, 2016)

Provision for retirement benefits

1,537

1,396

Net defined benefit liability on the balance sheet

1,537

1,396

(3) Retirement benefit expenses
Retirement benefit expenses calculated under the simplified method

FY 2015: 235 thousand yen
FY 2016: 219 thousand yen

3. Defined contribution pension plan
The amount of the Company’s contribution to the defined contribution pension plan for FY 2015 and FY 2016 were1,693 thousand yen and 1,965 thousand yen, respectively.

- 36 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Stock options)
1. The account name and the amount of stock options charged as expenses(Unit: thousands of yen)

Selling, general andadministrative expenses

FY 2015(from January 1, 2015
to December 31, 2015)

FY 2016(from January 1, 2016
to December 31, 2016)

102,898

137,010

2. The account name and the amount of income recognized for vested shares that expired unexercised(Unit: thousands of yen)

Gain on reversal of stockacquisition rights

FY 2015(from January 1, 2015
to December 31, 2015)

FY 2016(from January 1, 2016
to December 31, 2016)

3,312

5,452

3. Description of stock options/Changes in the size of stock options(1) Description of stock options

Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon the exerciseof the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

The 9th Series
Directors of the Company
Auditors of the Company
Total

3
2
5

The 11th Series
Employees of the Company
External collaborators
Total

Common stock 66,000 shares

Common stock 34,000 shares

February 1, 2007
1. The Person Granted* must have thestatus as the Company’s director,
auditor & supervisory board member,advisor or employee at the time of
exercise. However, this is notnecessarily the case if the Person
Granted retires due to the expiry ofher/his term or compulsory
retirement; if otherwise the Board of
Directors approves; or if the Person
Granted is an external collaborator.
2. The Company’s stock must be listed ona stock exchange.
The vesting period is not fixed
From January 24, 2009 to January 23,
2017

March 15, 2007

* Refers to those who receive the allotment of stock acquisition rights- 37 -

6
3
9

Same as on the left

Same as on the left
From March 3, 2009 to March 2, 2017

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

The 12th Series
Directors of the Company
Auditor of the Company
Total

The 13th Series
5
1
6

Employees of the Company
External collaborators
Total

Common stock 82,000 shares

Common stock 170,000 shares

August 29, 2007
1. The Person Granted must have thestatus as the Company’s director,
auditor & supervisory board
member, advisor or employee at thetime of exercise. However, this is
not necessarily the case if the
Person Granted retires due to the
expiry of her/his term orcompulsory retirement; if otherwise
the Board of Directors approves; orif the Person Granted is an external
collaborator.

August 29, 2007

2. The Company’s stock must be listed
on a stock exchange.
The vesting period is not fixed
From August 29, 2009 to August 28, 2017

(This part is intentionally left blank)- 38 -

33
12
45

Same as on the left

Same as on the left
From August 29, 2009 to August 28, 2017

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon the exerciseof the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

The 14th Series
Directors of the Company
5
Auditor of the Company
1
Total
6

The 16th Series
External collaborators

14

Common stock 207,000 shares

Common stock 85,000 shares

October 1, 2008
1. The Person Granted must have thestatus as the Company’s director,
auditor & supervisory board member,advisor or employee at the time of
exercise. However, this is notnecessarily the case if the Person
Granted retires due to the expiry ofher/his term or compulsory
retirement; if otherwise the Board of
Directors approves; or if the Person
Granted is an external collaborator.

October 1, 2008

2. The Company’s stock must be listed ona stock exchange.
The vesting period is not fixed
From October 1, 2010 to September 30,
2018
The 17th Series
Directors of the Company
Auditor of the Company
Total

Same as on the left

Same as on the left
From October 1, 2010 to September 30,
2018
The 19th Series314

External collaborators

Common stock 72,000 shares

Common stock 12,500 shares

March 18, 2009
1. The Person Granted must have thestatus as the Company’s director,
auditor & supervisory board
member, advisor or employee atthe time of exercise. However, thisis not necessarily the case if the
Person Granted retires due to the
expiry of her/his term orcompulsory retirement; ifotherwise the Board of Directors
approves; or if the Person Granted
is an external collaborator.
.
2. The Company’s stock must be listed
on a stock exchange.
The vesting period is not fixed
From March 19, 2011 to March 18, 2019

March 18, 2009

- 39 -

2

Same as on the left

Same as on the left
From March 19, 2011 to March 18, 2019

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

The 20th Series
Directors of the Company
Auditor of the Company
Total

The 21st Series
6
17

Vesting conditions

Vesting period
Exercise period

50

Common stock 361,000 shares

Common stock 326,500 shares

March 31, 2010
1. The Person Granted must have thestatus as the Company’s director,
auditor & supervisory board member,advisor or employee at the time of
exercise. However, this is notnecessarily the case if the Person
Granted retires due to the expiry ofher/his term or compulsory
retirement; if otherwise the Board of
Directors approves; or if the Person
Granted is an external collaborator.
.
2. The Company’s stock must be listed ona stock exchange.
The vesting period is not fixed
From April 1, 2012 to March 31, 2020

March 31, 2010

The 22nd Series
Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Employees of the Company

External collaborators

Same as on the left

Same as on the left
From April 1, 2012 to March 31, 2020
The 23rd Series

13

Employees of the Company

Common stock 153,000 shares

Common stock 32,000 shares

March 31, 2010
1. The Person Granted must have thestatus as the Company’s director,
auditor & supervisory board member,advisor or employee at the time of
exercise. However, this is notnecessarily the case if the Person
Granted retires due to the expiry ofher/his term or compulsory
retirement; if otherwise the Board of
Directors approves; or if the Person
Granted is an external collaborator.

October 15, 2010

2. The Company’s stock must be listed ona stock exchange.
The vesting period is not fixed
From April 1, 2012 to March 31, 2020

- 40 -

9Same as on the left

Same as on the left
From October 15, 2012 to October 14,
2020

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

The 24th Series
Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

Directors of the Company

The 25th Series
5

Employees of the Company

Common stock 192,000 shares

Common stock 195,000 shares

March 31, 2011
1. The Person Granted must have thestatus as the Company’s director,
auditor & supervisory board member,advisor or employee at the time of
exercise. However, this is notnecessarily the case if the Person
Granted retires due to the expiry ofher/his term or compulsory
retirement; if otherwise the Board of
Directors approves; or if the Person
Granted is an external collaborator.

March 31, 2011

2. The Company’s stock must be listed ona stock exchange.
The vesting period is not fixed
From March 31, 2013 to March 30, 2021

(This part is intentionally left blank)- 41 -

59

Same as on the left

Same as on the left
From March 31, 2013 to March 30, 2021

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

The 26th Series
Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

Directors of the Company

The 27th Series
4

Common stock 362,500 shares

Common stock 430,700 shares

May 2, 2012
No specific conditions are prescribed in
the allotment agreement for stockacquisition rights entered into between the
Company and the Person Granted, except
for certain vesting conditions stipulated in
the exercise conditions. The exercise
conditions are described in *(1) to (6).
The period that fulfills the requirement of
the exercise conditions *(2) and (3).
From April 18, 2014 to April 17, 2022

May 2, 2012

The 28th Series
Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

Employees of the Company

Employees of the Company

Same as on the left

Same as on the left
From April 18, 2014 to April 17, 2022
The 30th Series

5

Directors of the Company

Common stock 16,500 shares

Common stock 116,000 shares

September 28, 2012
No specific conditions are prescribed in
the allotment agreement for stockacquisition rights entered into between the
Company and the Person Granted, except
for certain vesting conditions stipulated in
the exercise conditions. The exercise
conditions are described in *(1) to (6).
The period that fulfills the requirement of
the exercise conditions *(2) and (3).
From September 14, 2014 to September
13, 2022

May 29, 2013- 42 -

70

5

Same as on the left

Same as on the left
From May 15, 2015 to May 14, 2023

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

The 31st Series
Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

Employees of the Company

The 32nd Series
68

Common stock 124,000 shares

Vesting conditions

Vesting period
Exercise period

5Common stock 252,000 shares

May 29, 2013
No specific conditions are prescribed in
the allotment agreement for stockacquisition rights entered into between the
Company and the Person Granted, except
for certain vesting conditions stipulated in
the exercise conditions. The exercise
conditions are described in *(1) to (6).

April 30, 2014
No specific conditions are prescribed in
the allotment agreement for stockacquisition rights entered into between the
Company and the Person Granted, except
for certain vesting conditions stipulated in
the exercise conditions. The exercise
conditions are described in *(1), (3), (4),(7) and (8).
The period that fulfills the requirement of The period that fulfills the requirement of
the exercise conditions *(2) and (3).
the exercise condition *(3).
From May 15, 2015 to May 14, 2023
From April 16, 2017 to April 15, 2024
The 33rd Series

Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant dateDirectors of the Company

Employees of the Company

The 35th Series
68

Directors of the Company

Common stock 333,000 shares

Common stock 204,200 shares

April 30, 2014
No specific conditions are prescribed in
the allotment agreement for stockacquisition rights entered into between the
Company and the Person Granted, except
for certain vesting conditions stipulated in
the exercise conditions. The exercise
conditions are described in *(1), (3), (4),(7) and (8).
The period that fulfills the requirement of
the exercise condition *(3).
From April 16, 2017 to April 15, 2024

April 10, 2015

- 43 -

6

Same as on the left

Same as on the left
From March 27, 2018 to March 26, 2025

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

The 36th Series
Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

Employees of the Company

The 37th Series
61

Directors of the Company

Common stock 312,000 shares

Common stock 236,500 shares

April 10, 2015
No specific conditions are prescribed in
the allotment agreement for stockacquisition rights entered into between the
Company and the Person Granted, except
for certain vesting conditions stipulated in
the exercise conditions. The exercise
conditions are described in *(1), (3), (4),(7) and (8).
The period that fulfills the requirement of
the exercise condition *(3).
From March 27, 2018 to March 26, 2025

April 14, 2016

6

Same as on the left

Same as on the left
From March 31, 2019 to March 30, 2026

The 38th Series
Individuals covered by theplan and number of persons
granted stock options
Class and number of shares
to be issued upon theexercise of the stock options
Grant date

Vesting conditions

Vesting period
Exercise period

Employees of the Company

73

Common stock 395,000 shares
April 14, 2016
No specific conditions are prescribed in
the allotment agreement for stockacquisition rights entered into between the
Company and the Person Granted, except
for certain vesting conditions stipulated in
the exercise conditions. The exercise
conditions are described in *(1), (3), (4),(7) and (8).
The period that fulfills the requirement of
the exercise condition *(3).
From March 31, 2019 to March 30, 2026*(1) Fractions less than one unit of a stock acquisition right shall be unexercisable.
(2) The Person Granted may exercise all or part of the rights in accordance with the following classifications:＜The 26th Series and the 27th Series stock option＞(a) Those who were granted the stock acquisition rights may exercise the rights within the limit of one-fourth (1/4) from
April 18, 2014 to April 17, 2015.
(b) Those who were granted the stock acquisition rights may exercise the rights within the limit of one-half (1/2) from April
18, 2015 to April 17, 2016.
(c) Those who were granted the stock acquisition rights may exercise the rights within the limit of three-fourths (3/4) from
April 18, 2016 to April 17, 2017.
(d) Those who were granted the stock acquisition rights may exercise all the rights from April 18, 2017 to April 17, 2022.

- 44 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

＜The 28th Series stock option＞(a) Those who were granted the stock acquisition rights may exercise the rights within the limit of one-fourth (1/4) from
September 14, 2014 to September 13, 2015.
(b) Those who were granted the stock acquisition rights may exercise the rights within the limit of one-half (1/2) from
September 14, 2015 to September 13, 2016.
(c) Those who were granted the stock acquisition rights may exercise the rights within the limit of three-fourths (3/4) from
September 14, 2016 to September 13, 2017.
(d) Those who were granted the stock acquisition rights may exercise all the rights from September 14, 2017 to September
13, 2022.
＜The 30th and the 31st Series stock option＞(a) Those who were granted the stock acquisition rights may exercise the rights within the limit of one-fourth (1/4) from May
15, 2015 to May 14, 2016.
(b) Those who were granted the stock acquisition rights may exercise the rights within the limit of one-half (1/2) from May
15, 2016 to May 14, 2017.
(c) Those who were granted the stock acquisition rights may exercise the rights within the limit of three-fourths (3/4) fromMay 15, 2017 to May 14, 2018.
(d) Those who were granted the stock acquisition rights may exercise all the rights from May 15, 2018 to May 14, 2023.
(3) The Person Granted shall exercise the rights starting from the date of resolution by the below-mentioned shareholders’meeting or the Board of Directors’ meeting until one day before the effective date of the Organizational Restructuring asfollowed, regardless of the conditions of the exercise period originally stipulated, when the Organizational Restructuring isapproved by the resolution of the Company’s shareholders’ meeting (including the case where resolution of a shareholders’meeting is deemed to exist pursuant to the provision of Article 319 of the Companies Act) or the Board of Directors’ meeting(limited to the case where no shareholders’ meeting is required for the said Organizational Restructuring) before the exercise
period of the stock acquisition rights comes into effect: an absorption-type merger or an incorporation-type merger where theCompany becomes a dissolving company and an absorption-type split or an incorporation-type company split where theCompany becomes a split company or a share exchange or a share transfer where the Company becomes a wholly-owned
subsidiary (collectively, “Organizational Restructuring” as mentioned above).
(4) The stock acquisition rights shall not be offered for pledge or disposed of in any other way.
(5) The Person Granted must have the status as the Company’s director, auditor, or employee of the Company or its affiliates at
the time of exercise. However, this is not necessarily the case where:(a) The Person Granted is a director, auditor, or employee of the Company or its affiliates and retires due to the expiry ofher/his term.
(b) The Person Granted is an employee of the Company or its affiliates and retires due to compulsory retirement.
(c) The Person Granted is a director, auditor, or employee of the Company or its affiliates and the Board of Directors
resolves that he/she has resigned or retired with honorable recognition.
(6) In the event that:(a) The Person Granted dies before the exercise period comes into effect, the beneficiary/ies shall exercise the rights of up to
one-half (1/2) within six (6) months from the date of inheritance, or(b) The Person Granted dies during the exercise period, the beneficiary/ies shall exercise all the rights within six (6) months
from the date of inheritance.
However, in the event that the beneficiary/ies dies, the rights shall be discarded and shall not be exercised by his/her
beneficiary/ies.
(7) The Person Granted must have the status as a director, auditor, or employee of the Company or its affiliates at the time of
exercise. However, this is not necessarily the case if:(a) The Person Granted is a director of the Company or its affiliates and retires due to the expiry of her/his term.
(b) The Person Granted is an employee of the Company or its affiliates and retires due to compulsory retirement.
(c) The Person Granted is a director or employee of the Company or its affiliates and the Board of Directors resolves thathe/she has resigned or retired with honorable recognition.

- 45 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(8) In the event that the Person Granted dies, the beneficiary/ies shall be able to succeed and exercise the stock acquisition rights
as prescribed in the allotment agreement for stock acquisition rights entered into between the Company and the Person
Granted. However, in the event that the beneficiary/ies dies, the rights shall be discarded and shall not be exercised by his/her
beneficiary/ies.

(This part is intentionally left blank)- 46 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(2) Change in the size of stock options
The number of shares which may arise upon exercise of stock options as of December 31, 2016 is as follows.
(a) Number of stock options(Unit: number of shares)
The 6th Series
The 7th Series
The 8th Series
The 9th Series
Grant date
April 18, 2006
July 1, 2006
December 4, 2006 February 1, 2007
Non-vested shares:
At the beginning of the year－－－－
Granted－－－－Expired－－－－
Vested－－－－At the end of the year－－－－
Vested shares:
At the beginning of the year
2,000
61,0001,000
3,000
Vested－－－－Exercised－－－－
Expired2,000
61,0001,000－
At the end of the year
－
－
－
3,000

Grant dateNon-vested shares:
At the beginning of the year
GrantedExpired
VestedAt the end of the year
Vested shares:
At the beginning of the year
VestedExercised
ExpiredAt the end of the year

Grant dateNon-vested shares:
At the beginning of the year
GrantedExpired
VestedAt the end of the year
Vested shares:
At the beginning of the year
VestedExercised
Expired(Unit: number of shares)
The 13th Series
The 14th Series
August 29, 2007
October 1, 2008

The 11th Series
March 15, 2007

The 12th Series
August 29, 2007

－
－
－
－
－

－
－
－
－
－

－
－
－
－
－

－
－
－
－
－

7,000
－
－
－
7,000

23,000－－－23,00061,000－－－61,00028,000－－－28,000

The 16th Series
October 1, 2008

The 17th Series
March 18, 2009

－
－
－
－
－

－
－
－
－
－

－
－
－
－
－

－
－
－
－
－

70,000
－
－
－

4,000
－
－
－

2,500
－
－
－

344,500－－－- 47 -(Unit: number of shares)
The 20th Series
The 19th SeriesMarch31, 2010
March 18, 2009

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

At the end of the year

Grant dateNon-vested shares:
At the beginning of the year
GrantedExpired
VestedAt the end of the year
Vested shares:
At the beginning of the year
VestedExercised
ExpiredAt the end of the year

Grant dateNon-vested shares:
At the beginning of the year
GrantedExpired
VestedAt the end of the year
Vested shares:
At the beginning of the year
VestedExercised
ExpiredAt the end of the year

Grant dateNon-vested shares:
At the beginning of the year
GrantedExpired
VestedAt the end of the year
Vested shares:
At the beginning of the year
VestedExercised
ExpiredAt the end of the year

70,000

4,000

2,500

344,500(Unit: number of shares)
The 23rd Series
The 24th Series
October 15, 2010
March 31, 2011

The 21st Series
March 31, 2010

The 22nd Series
March 31, 2010

－
－
－
－
－

－
－
－
－
－

－
－
－
－
－

－
－
－
－
－

197,500－－
27,000170,500

153,000－－－
153,000

10,000－－－10,000

192,000－－－
192,000(Unit: number of shares)
The 27th Series
The 28th Series
May 2, 2012
September 28, 2012

The 25th Series
March 31, 2011

The 26th Series
May 2, 2012

－
－
－
－
－

161,250－－
80,62580,625

116,800－
8,850
61,52546,425

6,000
－
500
3,000
2,500

117,000－－
13,000104,000

201,250
80,625－－281,875

159,700
61,525－
14,250206,975

6,000
3,000
－
1,500
7,500

The 30th Series
May 29, 2013

The 31st Series
May 29, 2013

(Unit: number of shares)
The 32nd Series
The 33rd Series
April 30, 2014
April 30, 2014

71,250－－23,75047,50056,400－
6,675
20,625
29,100252,000－－－
252,000

213,900－
26,10014,900172,900

44,75023,750－－68,50025,90020,625－4,225
42,300

－
－
－
－
－

7,000
14,900－－21,900- 48 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Grant dateNon-vested shares:
At the beginning of the year
GrantedExpired
VestedAt the end of the year
Vested shares:
At the beginning of the year
VestedExercised
ExpiredAt the end of the year

(Unit: number of shares)
The 37th Series
The 38th Series
April 14, 2016
April 14, 2016

The 35th Series
April 10, 2015

The 36th Series
April 10, 2015

204,200－－
10,300193,900

272,500－
33,50025,500213,500－
236,500－－
236,500－
395,000
49,50012,500333,000－
10,300－－10,300－25,500－－25,500

－
－
－
－
－

－
12,500－－12,500- 49 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016(b) Per share prices
Grant date
Exercise price (yen) (Note 1)
Average stock price at thetime of exercise (yen)Fair value price at grant date(yen)

Grant date
Exercise price (yen) (Note 1)
Average stock price at thetime of exercise (yen)Fair value price at grant date(yen)

Grant date
Exercise price (yen) (Note 1)
Average stock price at thetime of exercise (yen)Fair value price at grant date(yen)

Grant date
Exercise price (yen) (Note 1)
Average stock price at thetime of exercise (yen)Fair value price at grant date(yen)

Grant date
Exercise price (yen) (Note 1)
Average stock price at thetime of exercise (yen)Fair value price at grant date(yen) (Note 2)

The 6th Series
April 18, 2006
974

The 7th Series
July 1, 2006
1,461

The 8th Series
December 4, 2006
1,461

The 9th Series
February 1, 2007
1,461

－

－

－

－

－

0

0

0

The 11th Series
March 15, 2007
1,461

The 12th Series
August 29, 2007
1,461

The 13th Series
August 29, 2007
1,461

The 14th Series
October 1, 2008
1,169

－

－

－

－

0

0

0

0

The 16th Series
October 1, 2008
1,169

The 17th Series
March 18, 2009
1,169

The 19th Series
March 18, 2009
1,169

The 20th Series
March 31, 2010
585

－

－

－

－

0

0

0

0

The 21st Series
March 31, 2010
585

The 22nd Series
March 31, 2010
585

The 23rd Series
October 15, 2010
585

The 24th Series
March 31, 2011
682

－

－

－

－

0

0

0

0

The 25th Series
March 31, 2011
682

The 26th Series
May 2, 2012
555

The 27th Series
May 2, 2012
555

The 28th Series
September 28, 2012
555

－

－

－

－

(a) 179(b) 187(c) 195(a) 179(b) 187(c) 195(a) 203(b) 208(c) 213(d) 202(d) 202(d) 2170- 50 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

Grant date
Exercise price (yen)Average stock price at thetime of exercise (yen)Fair value price at grant date(yen) (Note 2)

Grant date
Exercise price (yen)Average stock price at thetime of exercise (yen)Fair value price at grant date(yen)

The 30th Series
May 29, 2013
(Note 1) 799

The 31st Series
May 29, 2013
(Note 1) 799－(a) 586(b) 602(c) 617(d) 631

The 35th Series
April 10, 2015

The 32nd Series
April 30, 2014

The 33rd Series
April 30, 2014
1

1

－

－

－

(a) 586(b) 602(c) 617(d) 631229

229

The 36th Series
April 10, 2015

The 37th Series
April 14, 2016

The 38th Series
April 14, 2016

1

1

1

1

－

－

－

－

306

306

272

272

(Notes) 1. The Company increased its capital through the public offering on December 4, 2013 and through the third-party allotment
on December 25, 2013, at the per share amount less than the exercise price of options. Thus, the exercise amounts above
are stated after the price adjustments clause.
2. (a), (b), (c) and (d) above correspond to each of (a), (b), (c) and (d) of the exercise periods as previously described in
3. (1) * (2).

4. Method for estimating the fair value of the stock options
The fair value of the stock options that were granted during this fiscal year is estimated based on the following
method.
(1) Estimate technique used: Black-Scholes Option Pricing Model(2) Major assumptions and estimate method
The 37th Series
The 38th Series
Volatility of stock price (Note 1)
62.24%
62.24%
Estimated remaining outstanding
3.0 years
3.0 years
period (Note 2)
Estimated dividend (Note 3)
0 yen per share
0 yen per share
Risk free interest rate (Note 4)(0.24)%(0.24)%(Notes) 1. The volatility was calculated based on the actual stock prices from April 29, 2013 to April 14, 2016.
2. The period from the allotment date to the start date of the exercise period is used.
3. The Company estimates dividends to be zero since no dividends have been paid in the past.
4. This represents yields of Japanese government bonds corresponding to the estimated remaining outstanding period.

5. Estimate of the number of stock options vested
The number of expired shares is estimated based on the historical turnover ratio.

- 51 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Deferred tax accounting)
1. Significant components of deferred tax assets and liabilities(Unit: thousands of yen)
FY 2015
FY 2016(as of December 31, 2015) (as of December 31, 2016)
Deferred tax assets:
Excess depreciation for lump-sum depreciable
assetsExcess amortization for deferred assets
Research and development expenses
Accounts payable-other
Provision for retirement benefits
Enterprise tax payable
Asset retirement obligation
Share-based compensation expenses
Loss carried forward
Subtotal
Valuation allowance
Total deferred tax assets

2,357

2,192

391,435
1,011,607
8,458
497
4,396
360
59,4801,818,206
3,296,798(3,296,798)－

871,030
854,810243
427
10,704967
95,125
1,881,788
3,717,291(3,717,291)－

2. The reconciliation between the effective tax rates reflected in the financial statements and the statutory tax rate isomitted since the Company reported loss before income taxes for the years ended December 31, 2015 and 2016.
3. Revision of amounts of deferred tax assets and liabilities due to changes in rates of corporate tax, etc.
Following the enactment of the “Act for Partial Revision of the Income Tax Act, etc.” and the “Act for Partial
Revision of the Local Tax Act, etc.” on March 29, 2016 and the enactment of the “Act for Partial Revision of theConsumption Tax Act and for the Drastic Reform of the Taxation System for Ensuring Stable Financial Resources forSocial Security” and the “Act for Partial Revision of the Local Tax Act and Local Allocation Tax Act for the Drastic
Reform of the Taxation System for Ensuring Stable Financial Resources for Social Security” in the Diet on November
18, 2016, the statutory tax rate used in the calculation of deferred tax assets and liabilities for this fiscal year (however,limited to those expected to be reversed on or after January 1, 2017), has been changed from 32.34% of the previous
fiscal year to 30.86% for those that are expected to be collected or paid during the period from January 1, 2017 to
December 31, 2018, and to 30.62% for those that are expected to be collected or paid on or after January 1, 2019.
There is no impact from this change in the tax rate.
(Asset retirement obligations)
The Company has future restoration obligations related to leasehold contracts for office premises.
Carrying the balance of lease and guarantee deposits as an asset, the Company reasonably estimates non-recoverable
amounts of lease and guarantee deposits under lease contracts and records the amount attributable to the respective
fiscal year as expenses, instead of accounting for asset retirement obligations by recognizing a liability and an
associated asset.

- 52 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Segment information)【Segment information】
FY 2015 (from January 1, 2015 to December 31, 2015) and FY 2016 (from January 1, 2016 to December 31, 2016)
Segment information is omitted since the Company operates within a single segment of the pharmaceutical industry
including research and development of pharmaceutical drugs as well as manufacturing and marketing and otherrelated activities.

【Related information】
FY 2015 (from January 1, 2015 to December 31, 2015)
1. Information by product and service
Information by product and service is omitted since external sales of a single service category account for morethan 90% of total net sales stated in the statement of income.
2. Information about geographical areas(1) Net sales
Net sales information about geographical areas is omitted since external sales to Japanese customers accountfor more than 90% of total net sales stated in the statement of income.
(2) Property, plant and equipment
All property, plant and equipment are located in Japan.
3. Information by the major customer(Unit: thousands of yen)
Name of customer

Net sales

Eisai Co., Ltd.

1,852,304

Name of related segment
Pharmaceutical businesses including research and developmentof pharmaceutical drugs as well as manufacturing andmarketing and other related activities.

FY 2016 (from January 1, 2016 to December 31, 2016)
1. Information by product and service
Information by product and service is omitted since external sales of a single service category account for morethan 90% of total net sales stated in the statement of income.
2. Information about geographical areas(1) Net sales
Net sales information about geographical areas is omitted since external sales to Japanese customers accountfor more than 90% of total net sales stated in the statement of income.
(2) Property, plant and equipment
All property, plant and equipment are located in Japan.
3. Information by the major customer(Unit: thousands of yen)
Name of customer

Net sales

Eisai Co., Ltd.

2,264,541

Name of related segment
Pharmaceutical businesses including research and developmentof pharmaceutical drugs as well as manufacturing andmarketing and other related activities.

- 53 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

【Information about impairment loss on long-lived assets by reportable segment】
FY 2015 (from January 1, 2015 to December 31, 2015) and FY 2016 (from January 1, 2016 to December 31, 2016)
None to be reported.
【Information about the amortization and unamortized balance of goodwill by reportable segment】
FY 2015 (from January 1, 2015 to December 31, 2015) and FY 2016 (from January 1, 2016 to December 31, 2016)
None to be reported.
【Information about the gain recognized on negative goodwill by reportable segment】
FY 2015 (from January 1, 2015 to December 31, 2015) and FY 2016 (from January 1, 2016 to December 31, 2016)
None to be reported.

(Related party information)
Transactions with related parties
Director(s) and major individual shareholder(s) of the Company
FY 2015 (from January 1, 2015 to December 31, 2015)
None to be reported.
FY 2016 (from January 1, 2016 to December 31, 2016)
None to be reported.

- 54 -

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Per share information)
FY 2015(from January 1, 2015
to December 31, 2015)

FY 2016(from January 1, 2016
to December 31, 2016)

Net assets per share
127.56 yen
Net assets per share
108.61 yen
Net loss per share(81.26) yen
Net loss per share(58.82) yen(Notes) 1. While having potential dilutive stocks, diluted net income per share is not provided since the Company
reported net loss per share.
2. The basis for calculating net loss per share is as follows:
FY 2015(from January 1, 2015
to December 31, 2015)
Net loss (thousand yen)
(2,632,095)
Amount not attributable to the shareholders of－common stock (thousand yen)
Net loss attributable to the shareholders of common(2,632,095)
stock (thousand yen)
Average number of shares outstanding during the32,390,848
year (shares)
Description of potential dilutive stocks not included 28 types of stock acquisitionin the earning-per-share calculation due to antirights (6,901,550 units) in
dilution
accordance with theCommercial Code of 1890
Article 280 (20) and (21), andthe Companies Act Article 236,
238, and 239.

FY 2016(from January 1, 2016
to December 31, 2016)(2,313,233)－(2,313,233)
39,329,706
28 types of stock acquisitionrights (11,038,308 units) inaccordance with theCommercial Code of 1890
Article 280 (20) and (21), andthe Companies Act Article 236,
238, and 239.

3. The basis for calculating net assets per share is as follows:
FY 2015(from January 1, 2015
to December 31, 2015)
Net assets (thousand yen)Amount to be deducted from net assets (thousandyen)[Of which, stock acquisition rights herein(thousand yen)]
Net assets attributable to the shareholders ofcommon stock (thousand yen)
Number of shares used in the calculation of net
assets per share (shares)- 55 -FY 2016(from January 1, 2016
to December 31, 2016)

4,431,811

5,484,870

299,887

431,135[299,887][431,135]

4,131,924

5,053,735

32,390,848

46,530,749

SymBio Pharmaceuticals Limited (4582) Summary of Financial Statements [Japanese GAAP] (Non-consolidated)
Results for the fiscal year ended December 31, 2016

(Significant subsequent events)
Issuance of new shares through the exercise of stock acquisition rights regarding bonds with stock acquisition rights
During the period from January 1, 2017 to February 9, 2017, a portion of the third unsecured bonds with convertible
bond type stock acquisition rights was converted into new shares through the exercise of the rights. The summary ofsuch exercise of stock acquisition rights is as follows.
Number and type of shares issued:
Total amount issued:
Amount of decrease in bonds with convertible bond type stockacquisition rights:
Amount transferred to common stock (capital):

6. Other(1) Change in officers
None to be reported.
(2) Other
None to be reported.

- 56 -

1,421,800 shares of common stock
300,000 thousand yen
300,000 thousand yen
150,000 thousand yen