Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
1. Overview of Consolidated Financial Results
2. Highlights of Business Performance
3. Consolidated Financial Results
4. Main Product Sales Update
5. R&D Expenses, Capex & Depreciation
6. Development pipeline

P.1
P.2
P.3
P.4
P.5
P.6～7

【Reference】
7. Consolidated Financial Results and full year Forecast
8. P&L Summary
9. BS Summary
10. Financial summary
11. KYORIN Pharmaceutical result

P.9
P.10～11
P.12
P.13
P.14～17

May 11, 2021

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

Overview of Consolidated Financial Results for Fiscal 2020

(Units : ¥ million)

Net Sales
Operating income
Ordinary income
Net income
Net income per share (yen)Total assets
Total equity

FY2017FY2018FY2019FY2020110,640
8,822
9,345
6,574
89.28
196,736
163,297

113,620
8,972
9,438
6,869
104.68173,034
123,395

109,983
7,503
8,175
6,149
107.35
171,160
122,710

102,904
5,786
6,447
6,130
106.99167,126
124,661

Change-6.4%-22.9%-21.1%
-0.3%
-0.3%
-2.4%
+1.6%

FY2021※(Forecast)

102,600
3,300
3,800
2,700
47.12
－
－

Change※

—
—
—
—
—
—
—

Consolidated Business Results for Fiscal 2020
【Net Sales】 Although the main products "Desalex" and "Beova” grew, the main product market shrank due to the impact of NHI drug price revisions and the spread of
COVID-19 coronavirus infections. As the result New ethical drugs, etc. (Japan) was lower than the previous year. On the other hand, although Mometasone (AG)and Imidafenacin (AG) grew and sales of Generic drugs increased , overall sales decreased by 7,079 million yen year-on-year (6.4% in the same period of theprevious year) to 102,904 million yen.
【Profit】
Gross profit decreased by 5,404 million yen year-on-year due to a decrease in sales and increase of cost of sales ratio. On the other hand, selling, general andadministrative expenses decreased by 3,687 million yen (including decrease in R & D expenses 1,283 million yen) from the same period of the previous year due
to cost reduction efforts and voluntary restriction on MR activities, etc. Operating income was 5,786 million yen, so profit decreased by 1,717 million yen year-onyear (down 22.9%). Net income attributable to owners of the parent was 6,130 million yen (down 0.3%) after recording extraordinary income 1,929 million yen
including debt exemption gain, etc..

Consolidated Business Results Forecast for Fiscal 2021
【Net Sales and income】 In new ethical drugs, etc. (Japan), although the growth of main products are forecasted, sales of Long-term listed drugs are projected to besignificantly lower than in the previous fiscal year by NHI drug price revisions. Meanwhile, in generic drugs, sales of main drugs and new generic drugs are expected toincrease. Gross profit is projected to reduce due to increase in cost of sales ratio. Although book a up-front payment for the contract for the distribution right, SG&A isprojected to decrease due to cost reduction efforts. As a results, in terms of consolidated results for the fiscal year ending March 31, 2022, net sales are forecasted to be
102,600 million yen, operating income to be 3,300 million yen, and profit attributable to owners of parent to be 2,700 million yen.
The impact of the COVID-19 coronavirus outbreak on business performance is incorporated certain amount to forecast. However, given the huge uncertainty over thesituation, the Company will monitor future trend and if revision of the results forecasts becomes necessary, the Company will make prompt disclosure.
※It is planned to apply the “Accounting Standards for Revenue Recognition” from the fiscal year ending March 2022, and the consolidated financial forecast for the fiscal
year ending March 2022 incorporates these changes. Therefore, the rate of increase / decrease from the actual results for the fiscal year ended March 31, 2021 before theapplication of the standards, etc. is not stated.

1

Highlights of Business Performance(Units: ¥ billion)

120➢Net Sales decreased ¥7.1bln year on year

100

Cost of
Sales Ratio

Cost of
Sales Ratio

48.1%
80

60

40

49.8%

Cost of
Sales

Net
Sales

110.0

Cost of
Sales

53.0
Net
Sales

R&D

102.9

11.0
SG&A
(excluding R&D)

38.5

SG&A

49.5

20

7.5
FY2019◼Gross Profit decreased ¥5.4bln year on year

51.3
➢SG&A expenses decreased ¥3.7bln year on year
・R&D expenses decreased ¥1.3bln
・SG&A(excluding R&D) decreased ¥2.4bln

R&D

9.7

SG&A
(excluding R&D)

36.1

Operating
Income0➢Cost of sales ratio increased 1.7%
・NHI drug price revisions
・Generic drugs ratio increased

SG&A

45.8

◼Operating Income decreased¥1.7bln year on year

Operating
Income5.8

FY20205.8
2

Consolidated Financial Results(Year on Year)■Net Sales(Units : ¥ billion)

FY2019FY2020Change●Sales of new ethical drugs in Japan

102.9bln
69.7bln

FY19

Net Sales

110.0 102.9-7.1

New ethical drugs,
etc. (Japan)

77.5

69.7

-7.8

New ethical drugs（Overseas）

1.5

1.0

-0.5

31.0

32.2 +1.2

Generic drugs

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

14.6
2.6
4.3
1.1
13.3
5.8
6.0
11.8
5.8

(Forecast)（ -7.1） （ -5.1）（ -7.8） （ -4.1）

FY20

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

●Sales of new ethical drugs in Overseas

13.3
5.7
7.3
0.9
12.8
2.3
2.8
8.3
3.3

（ -1.3） （ -1.2）（ +3.1） （ -1.8）（ +3.0） （0）（ -0.2） （ -0.9）（ -0.5） （ +0.3）（ -3.5） （ +0.1）（ -3.2） （ +0.4）（ -3.5） （ +0.1）（ -2.5） （0）

1.0bln（ -0.5） （ -0.1）

Decreased the sales of Gatifloxacin

Operating
IncomeOrdinary
IncomeNet Income

7.5
8.2

5.8
6.4

-1.7
-1.8

●Sales of Generic drugs
32.2bln（+1.2） （ -0.8）
Sales increase by Nazonex AG, and Uritos AG(launched in June),supplement products
in FY2020 contributed■Operating Income

5.8bln（ -1.7） （ -2.0）◆Operating Income Margin decreased 1.2 percentage points to 5.6%
●Cost of Sales Ratio : 48.1%⇒49.8% Increased1.7 percentage points

6.1

6.1

0

【Increase】 NHI drug price revisions, Increase of sales of Generic products, etc.
【Decrease】 Efforts to reduce costs (Raw material costs, etc.) , Increase of Sales of New drugs●R&D Ratio : 10.0%⇒9.4% Decreased 0.6 percentage points※ The classification of reporting segment ("Prescription drugs business"and "Healthcare business") was consolidated to a single segment from thefirst quarter consolidated financial results for the fiscal year ended March 31,
2021
Along with this, the classification of sales was changed to combine theexisting “New ethical drugs (Japan)” and “healthcare business” to "Newethical drugs, etc. (Japan)".
There is no change in "New ethical drugs (overseas)" and "Generic drugs".

・Decreased ¥1.3bln (¥11.0bln⇒¥9.7bln) Progress and discontinuation of development project●SG&A Ratio (excluding R&D) : 35.0%⇒35.1% Increased 0.1 percentage points
・Decreased ¥2.4bln (¥38.5bln⇒¥36.1bln)■Net Income

Decrease of selling, labor and general expenses

6.1bln（0） （ -1.1）

Debt exemption gain due to the partial exemption of repayment obligation for long-term debt from JST,and others were recorded as extraordinary profit.

3

Main Product Sales Update(Units : ¥ billion)

Flutiform(Combination drug for asthma treatment)

Desalex(Antiallergic Agent)

Beova (Kyorin)(β3 adrenergic receptor agonist overactive bladder therapeutics)）

Lasvic(Quinolone synthetic antibacterial agent)

Pentasa(Ulcerative colitis and Crohn’s disease treatment)

Uritos (Kyorin)
New ethicaldrugs, etc.
(Japan)(Therapeutic agent for overactive bladder)

Nasonex(Spray type allergic rhinitis remedy)

Kipres for adult(Leukotriene Receptor Antagonist)

Kipres for children(Leukotriene Receptor Antagonist)

Mucodyne(Mucoregulant)

Milton(Disinfectant)

Rubysta(Disinfectant)Montelukast tablets “KM”
(Leukotriene Receptor Antagonist)

Generic
drugs

Mometasone Nasal 50mg “KYORIN”(Spray type allergic rhinitis remedy)

Imidafenacin tablets & OD “KYORIN”(Therapeutic agent for overactive bladder)

FY2020
ActualChange(%)

FY2021(Forecast)

FY2016FY2017FY2018FY2019

10.1

11.9

13.1

14.6

13.3

-9.0%

13.9

1.0

4.9

3.7

2.6

5.7 +120.7%

7.2

－

－

0.7

4.3

7.3

+70.2%

8.6

－

－

－

1.1

0.9

-19.6%

2.8

15.5

15.3

13.5

13.3

12.8

-4.3%

11.7

7.5

7.2

6.6

5.8

2.3

-60.1%

1.0

－

－

12.8

6.0

2.8

-54.0%

1.8

17.7

8.3

6.2

5.3

3.9

-25.4%

3.3

14.9

10.5

7.6

6.5

4.4

-33.0%

3.6

9.9

8.7

6.8

5.8

3.3

-43.4%

2.9

2.2

2.2

2.2

2.4

2.1

-10.2%

2.2

1.0

1.1

1.3

1.5

2.0

+34.9%

2.1

8.2

11.7

11.9

11.5

10.8

-6.1%

9.2

－

－

－

2.8

3.8

+37.0％

3.5

－

－

－

－

0.7

—

0.7
4

R&D Expenses, Capex & Depreciation

FY2020(Units : ¥million)

FY2016FY2017FY2018FY2021FY2019ActualChange(%)(Forecast)

13,56914,243

10,79010,987

9,703-11.7%

9,200

Capital expenditure

3,051

2,885

2,306

3,590

4,307

+20.0%

4,500

Depreciation expense

3,619

3,644

2,940

3,221

3,564

+10.6%

3,900

R&D expenses<Capital expenditure (Actual/Forecast)>(Units : ¥million)

FY2019FY2020(Actual)FY2021(Forecast)

27

31

33

Equipment for control,
sales activities

4

3

5

Equipment for
research

597

Plant facilities

5

Main R&D Activities -1 (as of May 11 2021)※Changes from the previous announcement (Feb 4 2021)

Ph III ~ Launch
Stage

Japan

Overseas

Compound /Code

Indication

OriginIn-house

A novel quinolone injection developed specifically for the treatmentof lower respiratory tract infections
1. Highly distributed in the lung, showing strong antibacterial
activity against pathogenic bacteria of respiratory tract infection
2. Effective against both aerobic and anaerobic bacteria, and able
to administer once a day
3. Showed effectiveness against aspiration pneumonia,
pulmonary suppuration, and lung abscess―

Evaluation committee on unapproved or off-labeled drugs with highmedical needs “Dimethyl sulfoxid”

Launch※(Mar 2021)―

New quinolone
LasvicIntravenous Drip antibacterial
Injection
Infusion Kit
150mg/KRP-AM1977Y

Launch※(Apr 2021)

―

Zymso
IntravesicalSolution 50%/KRP-116DInterstitial cystitis

Features

Comments※Signed agreement with MSD for exclusive distribution rights in Japan for Gefapixant Citrate, a Treatment for Chronic Cough, in Japan (Apr 2021)

POC Project (Ph I ~ Ph II)
Stage

Compound /Code

Proposed
Indication

Japan

Overseas

PhⅠ(Jul 2020)

PhⅠb/Ⅱa(aTyr pharma)

KRP-R120Interstitial lungdisease : ILD(pulmonary
sarcoidosis)

PhⅠ※(May 2021)

KRP-A218

Rhinovirus
infection at risk ofpotentially severe

OriginaTyrpharmaFeatures

Comments

It is a fusion protein drug having the action to suppress, by binding
to neuropilin-2 (NRP2) receptor, the excessive activation of
immune cells, and is a potential first-in-class therapy to treat
inflammatory diseases such as pulmonary sarcoidosis.
It is antiviral drug that suppresses viral growth by targeting hostmolecules

6

Main R&D Activities -2 (as of May 11 2021)

Licensing development (License-in)Stage
OverseasJapan
PhⅡ(Dec 2019)
ASKA
Pharmaceutical―

Compound /Code
AKP-009

Proposed
Indication
Benign Prostatic
Hyperplasia

OriginFeatures

ASKA
Novel androgen receptor modulator
Pharmaceut mode of action with the potential to
ical
exhibit prostatic shrinkage and to
improve urinary function as a novel
therapeutic agent for Benign
Prostatic Hyperplasia

Comments
ASKA Pharmaceutical granted KYORIN
Pharmaceutical the joint development
and commercialization rights for AKP009 within Japan (Sep 2020)

Licensing development (License-out)Stage

Compound /CodeLicensee / Collaborative
Therapyresearcharea / Action

OriginFeatures

Comments

PhⅠ

FPR-2 agonist
program

BMS

Nondisclosure

In-house

FPR-2 agonists that mainly inhibit
License agreement with BMS (Dec
the
2015)
migration of neutrophils and exhibit
anti-inflammatory action.

PhⅠ

KRP-203

Priothera－

In-house

Sphingosine-1-Phosphate Receptor Transfer of intellectual property(patents
Agonistand data required for the development
and sale) and APIs (Sep 2020)

Otonomy－In-house

Candidate compound forsensorineural hearing loss

Nonclinical Compound for

Sensorineural
Hearing Loss

Grant a global exclusive license todevelop, manufacture andcommercialize the therapeutic agent for
the treatment of otic disorders such as
hearing loss (Aug 2020)
Kyorin Pharmaceutical reserves acommercialization right of thetherapeutic agent in Japan
Otonomy’s Code: OTO-6XX

7

【Reference】

Consolidated Financial Results and full year Forecast

Year on YearFY2020(Actual)FY2021(Forecast)

102,904

102,600——

69,73568,600

—

—

996

800

—

—

Generic drugs

32,172

33,100——Operating Income

5,786

3,300

-2,486-43.0%

Ordinary Income

6,447

3,800

-2,647-41.1%Net Income

6,130

2,700

-3,430-56.0%(Units : ¥million)

Net sales (total)

New ethical drugs, etc.
(Japan)New ethical drugs(Overseas)

ChangeChange(%)

It is planned to apply the “Accounting Standards for Revenue Recognition” from the fiscal year ending March 2022, and the consolidated financial forecast for the fiscal
year ending March 2022 incorporates these changes.

9

P&L Summary: Consolidated Results – (1)<Breakdown>
FY2019Year on YearFY2020■ Sales（Units : ¥million)¥102,904mil( - ¥7,079mil)● New ethical drug, etc. (Japan)

Actual% Sales

Actual¥69,735mil% Sales Change % Change(billion)

Net Sales (total)

109,983 100.0% 102,904 100.0%

New ethical drugs,
etc. (Japan)

77,53570.5%

69,735

New ethical drugs(Overseas)

1,490

1.4%

996

-6.4%

-7,07967.8%-10.1%-7,8001.0%-33.2%-494

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

FY19

14.6
2.6
4.3
1.1
13.3
5.8
6.0
11.8
5.8

( - ¥7,800mil)
FY20

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

13.3
5.7
7.3
0.9
12.8
2.3
2.8
8.3
3.3

（ -1.3）（ +3.1）（ +3.0）（ -0.2）（ -0.5）（ -3.5）（ -3.2）（ -3.5）（ -2.5）● New ethical drug sales (Overseas)

Generic drugs

30,95728.1%

32,172

31.3%

+3.9%

+1,215¥996mil(- ¥494mil)

・ Decreased the sales of Gatifloxacin, etc.
● Generic drugs¥32,172mil( + ¥1,215mil)<Subsidiaries and Equity-method Affiliates>

・Nasonex AG, Uritos AG and launch of new generic drugs inConsolidated subsidiaries (5) ：・KYORIN Pharmaceutical Co., Ltd.
・ Kyorin Europe GmbH・ActivX Biosciences, Inc.
・KYORIN Rimedio Co., Ltd.
・KYORIN Pharmaceutical Group Facilities Co.,Ltd.
Equity-Method Affiliates： ・Nippon Rika Co., Ltd.

FY2020 contributed to sales

10

P&L Summary : Consolidated Results － (2)<Breakdown>(Units : ¥million)

FY2019ActualFY2020% Sales

Actual% Sales Change %Sales

109,983 100.0% 102,904 100.0%

Cost of Sales

52,95048.1%

51,276Gross Profit

57,032

51.9%

SG&A(R&D expenses)

49,52845.0％(10,987) (10.0%)

Change-6.4%-7,079

49.8%

-3.2%

-1,674

51,627

50.2%

-9.5%

-5,40445,841(9,703)44.5％(9.4%)-7.4%-3,687(-11.7%) (-1,283)

Operating Income

7,503

6.8%

5,786

5.6%

-22.9%-1,717

Non-Operating Income
Non-Operating Expenses

801
128

0.7%
0.1%

798
137

0.8%
0.1%

-0.3%
+6.8%

-2
+8

Ordinary Income

8,175

7.4%

6,447

6.3%

-21.1%-1,728Extraordinary Profits
Extraordinary Losses

123
43

0.1%
0.0%

1,929
25

1.9% +1458.2%
0.0%-42.6%+1,805-18

Income before
income taxes

8,255

7.5%

8,352

8.1%

+1.2%

+96

Corporate, inhabitantsand enterprise taxes

2,085

1.9%

1,847

1.8%

-11.4%

-238

20

0.0%

374

0.4%

—

+353

6,149

5.6%

6,130

6.0%

-0.3%

-19

Tax adjustments

Net Income◆Cost of Sales Ratio :up 1.7 percentage points Y/Y (48.1％→49.8％)
・NHI drug price revisions
・Increase of sales of Generic products◆ R&D Ratio :down 0.6 percentage points Y/Y (10.0%→9.4％)＊¥11.0bln→¥9.7bln ( - ¥1.3bin)
Progress and discontinuation of development project◆SG&A (exclude R&D) Expenses :up 0.1 percentage Points Y/Y(35.0％→35.1％)＊¥38.5bln→¥36.1bln ( - ¥2.4bln）
・ Decrease of selling, labor and general costs■Operating Income ¥5,786mil ( - ¥1,717mil)＊Operating Income margin decreased 1.2percentage
points to 5.6%

■Net Income ¥6,130mil ( - ¥19mil)＊Recording of debt exemption gain about ¥1.1bln as
extraordinary income.
■Dividend per share ¥75.00 (interim dividend ¥30.00)＊Consolidated Dividend ratio

71.1%

11

BS Summary: Consolidated Results(Units : ¥million)

Current Assets

Mar / 2020<Breakdown>

Mar / 2021

Actual% totalActual% totalChange117,058

68.4%

114,027

68.2%-3,031

27,44540,446
3,399
38,568
4,166

―

―

31.8%

Cash, deposits
Notes and accounts receivable
Mk securities
Inventory
Other

31,92547,449993
33,283
3,406―

Fixed Assets

54,102

31.6%

53,099Tangible assets
Intangible assets
Investments

22,721
3,332
28,047―23,896
3,785
25,417

Year on Year
■Current Asset ：・ Other―■ Current Liabilities ：- ¥3,920mil( - ¥2,791mil)( - ¥1,129mil)- ¥2,064mil

167,126 100.0% -4,034

Current Liabilities

31,32818.3%

27,407

Notes payable
Other

9,776
21,551―

Non-Current Liabilities

17,121

10.0%

15,0579.0%-2,064・ Notes Payable
・ Other

Total Liabilities

48,44928.3%

42,46425.4%-5,985■ Non-Current Liabilities ：Owner’s Equity

118,534

69.3%

120,339

4,176

2.4%

4,322

2.6%

+146

6,922
36
-2,782

―

6,639
－40
－2,275

―

―

71.7%

124,661

Other Comprehensive Income
Unrealized holding gain (loss) on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans

Total Equity

122,710

Total Liabilities and Equity

171,160 100.0%

16.4%-3,920――- ¥1,002mil( + ¥1,174mil)( + ¥452mil)( - ¥2,630mil)

171,160 100.0%

20,422+ ¥760mil)

・ Tangible Assets
・ Intangible Assets
・ Investments

Total Assets

6,985

(

-1,002■ Fixed Assets ：―- ¥3,031mil

・ Cash, deposits( - ¥4,480mil)
・ Notes and accounts receivable ( - ¥7,002mil)
・ Mk securities( + ¥2,406mil)
・ Inventory( + ¥5,284mil)

72.0% +1,804

74.6% +1,951

167,126 100.0% -4,034

12

Financial summary (Consolidated)(Units : ¥million)

Sales(Exports)
Cost of Sales（cost of sales ratio ）％SG&A
Ratio to Sales (%)
R&D Expenses
Ratio to Sales (%)
Operating Income
Ratio to Sales (%)
Ordinary Income
Ratio to Sales (%)
Net Income
Ratio to Sales (%)
EPS (¥)
CapitalAssetsShareholder's equity
Total Equity
BPS (¥)ROE (%)
Equity Ratio (%)
Employees
Capital Expenditure
Depreciation Expense

FY2016

115,373(764)
50,847(44.1%)
54,113(46.9%)
13,569(11.8%)
10,413(9.0%)
10,874(9.4%)
7,305(6.3%)
99.45
700
192,668
152,585
157,837
2,146.83
4.6%
81.9%
2,382
3,051
3,619

FY2017

110,640(3,339)49,064(44.3%)
52,753(47.7%)
14,243(12.9%)
8,822(8.0%)
9,345(8.4%)
6,574(5.9%)
89.28
700
196,736
155,489
163,2972,214.13
4.1%
83.0%
2,348
2,885
3,644

FY2018113,620(830)
56,210(49.5%)
48,436(42.6%)
10,790(9.5%)
8,972(7.9%)
9,438(8.3%)
6,869(6.0%)
104.68700
173,034
116,744
123,395
2,154.05
4.8%
71.3%
2,297
2,306
2,940

FY2019109,983(1,490)52,950(48.1%)
49,528(45.0%)
10,987(10.0%)
7,503(6.8%)
8,175(7.4%)
6,149(5.6%)
107.35700
171,160
118,534
122,710
2,142.07
5.0%
71.7%
2,271
3,590
3,221

FY2020102,904(996)
51,276(49.8%)
45,841(44.5%)
9,703(9.4%)
5,786(5.6%)
6,447(6.3%)
6,130(6.0%)
106.99700
167,126
120,339
124,661
2,175.52
5.0%
74.6%
2,243
4,307
3,564

FY2021※(Forecast)

102,600
(800)
―
―

9,200
(9.0%)
3,300(3.2%)
3,800(3.7%)
2,700(2.6%)
47.12円
―
―
―
―
―
―
―
4,500
3,900

It was applied the ”partial revision to the Accounting Standards for Tax Effect Accounting” from the fiscal year ended March 2018.
※It is planned to apply the “Accounting Standards for Revenue Recognition” from the fiscal year ending March 2022, and the consolidated financial forecast for the fiscal year ending March 2022
incorporates these changes.

13

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(1)<Breakdown>
FY2019FY2020Year on Year

(Units : ¥million)■ Sales（ - ¥6,662mil）¥89,674mil● New ethical drugs, etc. (Japan)

Actual% Sales

Actual% Sales Change %ChangeNet Sales (total)

96,336 100.0% 89,674 100.0%-6.9%-6,662New ethical drugs,
etc. (Japan)

74,62577.5%

67,548

75.3%

-9.5%

-7,076

New ethical drugs(Overseas)

1,260

1.3%

793

0.9%

-37.1%-467（ - ¥7,076mil）¥67,548mil(billion)・Flutiform
・Desalex
・Beova・Lasvic
・Pentasa・Uritos・Nasonex
・Kipres・Mucodyne

FY19

14.6
2.6
4.3
1.1
13.3
5.8
6.0
11.8
5.8

FY20

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

13.3
5.7
7.3
0.9
12.8
2.3
2.8
8.3
3.3

（ -1.3）（ +3.1）（ +3.0）（ -0.2）（ -0.5）（ -3.5）（ -3.2）（ -3.5）（ -2.5）● New ethical drugs (Overseas)

Generic drugs

20,45021.2%

21,332

23.8%

+4.3%

+882

¥793mil（ - ¥467mil）・Decreased the sales of Gatifloxacin, etc.
● Generic Drugs¥21,332mil（ + ¥882mil）・Sales of Nasonex AG and Uritos AG increased

14

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(2)<Breakdown>
FY2019FY2020(Units : ¥million)

Actual% Sales

Actual% Sales Change %ChangeSales

96,336100.0%

89,674100.0%-6.9.%-6,662

Cost of Sales

47,33949.1%

44,922

50.1%

-5.1%

-2,417Gross Profit

48,99650.9%

44,751

49.9%

-8.7%

-4,245

SG&A(R&D expenses)

46.4%
44,675(10,038) (10.4%)

41,190(8,719)45.9%(9.7%)-7.8%-3,484(-13.1%) (-1,319)◆Cost of Sales Ratio :up 1.0 percentage points Y/Y (49.1％→50.1％)
・(Increase factor) NHI drug price revisions

・(Decrease factor)
Efforts to reduce costs(Raw material costs, etc.)
Increase of sales of New drugs

Operating Income

4,321

4.5%

3,561

4.0%

-17.6%◆R&D Ratio :down 0.7percentage points Y/Y(10.4％→9.7％)-760

Non-Operating Income
Non-Operating Expenses

1,093
74

1.1%
0.1%

1,077
92

1.2%
0.1%

-1.4%
+24.4%-15+18＊¥10.0bln→¥8.7bln
Progress and discontinuation of development project

Ordinary Income

5,340

5.5%

4,546

5.1%

-14.9%-793

Extraordinary Profits
Extraordinary Losses

―
61

―
0.1%

1,929
9

2.2%
0.0%

―
-84.7%+1,929-52◆SG&A (exclude R&D) expenses :up 0.2 percentage points Y/Y (36.0％→36.2％)

Income before
income taxes

5,278

5.5%

6,466

7.2%

+22.5%+1,187

Corporate, inhabitantsand enterprise taxes

1,273

1.3%

1,206

1.3%

-5.3%

-67

7

0.0%

445

0.5%

—

+437

3,996

4.1%

4,814

5.4%

+20.5%+817

Tax adjustments

Net Income＊¥34.6bln→¥32.5bln( - ¥2.1bln)
・Efforts to reduce costs
・Decrease of selling and general costs due to voluntary
restriction on promotion activities■Operating Income ¥3,561mil （ - ¥760mil）■Net Income ¥4,814mil（ + ¥817mil）＊ Recording of debt exemption gain about ¥1.1bln as
extraordinary income.

15

BS Summary: KYORIN Pharmaceutical(Non-consolidated)
Mar / 2020<Breakdown>

Mar / 2021

(Units : ¥million)

Current Assets

Actual% totalActual% totalChange121,23475.5%

119,598

76.4%-1,635

Cash, deposits
Notes and accounts receivable
Mk securities
Inventory
Other

18,32342,831
993
26,92732,157

Fixed Assets
Tangible assets
Intangible assets
Investments■Current Assets ：―16,98336,182
3,399
29,60933,422――39,33624.5%

37,02923.6%-2,306

7,328
2,741
29,265

―

7,213
3,080
26,734――

Total Assets

160,570 100.0%

156,628 100.0%

Current Liabilities

27,73017.3%

23,78915.2%-3,941

Notes payable
Other

10,294
17,436―

6,597
17,192――

Non-Current Liabilities

13,433

8.4%

12,4177.9%-1,015

Total Liabilities

41,16425.6%

36,20723.1%-4,957

Owner’s Equity

112,525

70.1%

113,848

6,880

4.3%

6,572

Total Equity

119,405

74.4%

120,420

Total Liabilities and Equity

160,570 100.0%

Other Comprehensive Income(Year on Year)-3,942

72.7% +1,323
4.2%- ¥1,635mil

・ Cash, deposits( - ¥1,340mil)
・ Notes and accounts receivable ( - ¥6,648mil)
・ Mk securities( + ¥2,406mil)
・ Inventory( + ¥2,681mil)・ Other( + ¥1,264mil)■Fixed Assets ：- ¥2,306mil

・Tangible Assets
・Intangible Assets
・Investments( - ¥114mil)( + ¥339mil)( - ¥2,531mil)■ Current Liabilities ：- ¥3,941mil

・ Accounts payable
・ Others( - ¥3,696mil)( - ¥244mil)■ Non-Current Liabilities ：- ¥1,015mil

・ Long-term debt

( - ¥1,277mil)-308

76.9% +1,015

156,628 100.0%-3,94216

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

Sales(Exports)
Cost of Sales（cost of sales ratio ）％SG&A
Ratio to Sales (%)
R&D Expenses
Ratio to Sales (%)
Operating Income
Ratio to Sales (%)
Ordinary Income
Ratio to Sales (%)
Net Income
Ratio to Sales (%)
EPS (¥)
CapitalAssetsShareholder's equity
Total Equity
BPS (¥)ROE (%)
Equity Ratio (%)
Employees
Capital Expenditure
Depreciation Expense

FY2016FY2017FY2018FY2019FY2020

FY2021※(Forecast)

100,022(528)

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

96,336(1,260)89,674(793)

89,800(600)

43,503(43.5%)

42,885(44.0%)

50,443(50.6%)

47,339(49.1%)

44,922(50.1%)―

49,714(49.7%)

48,645(49.9%)

43,905(44.0%)

44,675(46.4%)

41,190(45.9%)―

12,785(12.8%)

13,158(13.5%)

9,569(9.6%)

10,038(10.4%)

8,719(9.7%)

7,800(8.7%)

6,803(6.8%)

5,928(6.1%)

5,387(5.4%)

4,321(4.5%)

3,561(4.0%)

1,300(1.4%)

7,396(7.4%)

6,608(6.8%)

6,121(6.1%)

5,340(5.5%)

4,546(5.1%)

2,000(2.2%)

4,454(4.5%)
59.98円
4,317
149,382
117,744
125,310
1,687.28
3.5%
83.9%
1,687
905
2,143

4,637
(4.8%)
62.45円
4,317
151,622
118,595
128,614
1,731.76
3.7%
84.8%
1,673
815
1,942

4,389
(4.4%)
59.10円
4,317
161,986
112,464
121,320
1,633.55
3.5%
74.9%
1,567
599
1,183

3,996
(4.1%)
53.82円
4,317
160,570
112,525
119,405
1,607.77
3.3%
74.4%
1,502
441
1,337

4,814
(5.4%)
64.82
4,317
156,628
113,848
120,420
1,621.43
4.0%
76.9%
1,471
732
1,391

1,500
(1.7%)
―
―
―
―
―
―
―
―
700
1,500

It was applied the ”partial revision to the Accounting Standards for Tax Effect Accounting” from the fiscal year ended March 2018.
※It is planned to apply the “Accounting Standards for Revenue Recognition” from the fiscal year ending March 2022, and the consolidated financial forecast for the fiscal year ending March 2022
incorporates these changes.

17