Second Quarter Consolidated Financial Results
for the Fiscal Year Ending March 31, 2021
1. Outline of Consolidated Financial Results
2. Highlights of Business Performance
3. Consolidated Financial Results(actual/forecast)
4. Consolidated Financial Results for the Second
Quarter and full year forecast
5. Main Product Sales Update
6. R&D Expenses, Capex & Depreciation
7. Main R&D Activities【Reference】
8. P&L Summary
9. BS Summary
10. Financial summary
11. KYORIN Pharmaceutical results

P.1
P.2
P.3
P.4
P.5
P.6
P.7～8
P.9～10
P.11
P.12
P.13～16

November 5, 2020

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

Outline of Consolidated Financial Results
for the Second Quarter Ended September 30, 2019Mar/2021

Mar/2021

Sep/2017

Sep/2018

Sep/2019

Sep/2020% Y/Y

50,75850,36048,29947,735－1.2%

108,000－1.8%

115,500+5.0%

Operating Income

1,443

2,852

783

1,502

－91.7%

7,800

＋4.0％

9,700

+29.3％

Ordinary Income

1,693

3,183

1,076

1,813

－68.5%

8,400

＋2.7%

10,200+24.8%Net Income

1,240

2,217

834

2,118

－154.0%7,200＋17.1%

7,600+23.6%Net Sales(revise forecast)% Y/Y(original forecast)% Y/YSecond Quarter Consolidated Financial Results Ended September 30, 2020
[Net sales] Although "Beova" and "Desalex" grew, due to the negative growth of the ethical drug market caused by the spread of COVID-19 , the delay in market
penetration of the new drug groups due to the voluntary restriction on MR activities, etc. and a decrease in sales of long-listed products due to drug price revisions,sales of new ethical drugs, etc. (Japan) were 32,857 million yen, down from the same period of the previous year. On the other hand, sales of generic drugs increased
due to the promotion of the AG strategy, but overall sales decreased by 563 million yen to 47,735 million yen (down 1.2% from the same period of the previous year).

[Profit] Despite a decrease in sales, gross profit increased 273 million yen year-on-year due to an improvement in the cost of sales ratio,. SG&A decreased by 445
million yen compared to the same period of the previous year (including R & D expenses increased by 9 million yen) thanks to cost reduction and voluntary restriction
on MR activities caused by the spread of COVID-19. Operating income was 1,502 million yen, an increase of 718 million yen (up 91.7% year-on-year).
Net income attributable to owners of the parent was 2,118 million yen (up 154.0% from the same period of the previous year). It includes the partial exemption of
repayment obligations for long-term debt from JST * (1,073million yen) due to the termination of development of some development pipeline.

Consolidated Financial Results for the Fiscal Year Ending March 31, 2021(forecast)※Japan Science and Technology Agency

The result forecasts for the fiscal year ending March 31, 2021 announced in the “Summary of Consolidated Financial Results (For the Fiscal
Year Ended March 31, 2020)” on May 12, 2020 are revised as follows.
[Net sales] Based on the results for the first half of the consolidated cumulative period, sales have been revised downward, taking into account the impact of COVID19 in the future.
[Profit] Gross profit is expected to decrease as decrease in sales. In addition, while reducing SG&A (excluding R & D expenses), R & D expenses are expected toincrease due to a lump-sum contract payment by a license agreement for development candidate product. As a result, operating income, ordinary income and net
income attributable to owners of the parent have been revised downward.

[Dividends] There is no change to the dividend forecast announced on May 12, 2020 (annual dividend of 75 yen per share).

1

Highlights of Business Performance（Units: ¥billion）

50.0

Net Sales decreased ¥0.6bln year on year.
Cost of
Sales Ratio

40.0

30.0

Net sales

48.3
20.0

Cost of sales ratio decreased 1.2%.

49.2%

Cost of
Sales Ratio

48.0%

Cost of Sales

Cost of Sales■Gross Profit increased ¥0.3bln year on year

23.8

47.7

R&D

5.2
SG&A
(excluding R&D)

10.0

Net sales

SG&A

23.8

22.9

SG&A
(excluding R&D)

 Operating Income increased ¥0.7bln year on year.
SG&A

23.3
Operating
Income0.8
Sep/2019

・ R & D expenses flat・ SG&A(excluding R&D) decreased ¥0.5bln

5.2

Operating
Income0.0

SG&A expenses decreased ¥0.5bln year on year.

R&D

18.1

18.6

・ Product mix
・ Efforts to reduce costs(Raw material costs, etc.)

1.5

1.5

Sep/20202

Consolidated Financial Results
for the Second Quarter Ended September 30, 2020
（forecast）(Year on Year) ※(¥ billion)

Net Sales
New ethicaldrugs, etc.
（Japan）
New ethicaldrugs（Overseas）
Generic drugs

Sep/
2019

Sep/
2020

■Net Sales

Change

48.3

47.7

－0.6

33.7

32.9

－0.8

0.4

0.5

＋0.1

14.2

14.4

47.7bln●New ethical drug, etc.(Japan)(billion)・ Flutiform・ Desalex
・ Beova・ Lasvic・ Pentasa
・ Uritos
・ Nasonex
・ Kipres・ Mucodyne＋0.2（－0.8）

32.9bln20.3（2Q）
6.7
0
0.6
6.8
3.0
2.7
5.4
2.8

●New ethical drugs (Overseas)（－0.6） （－5.1）

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

0.5bln21.3（2Q）
6.4
1.8
3.8
0.2
6.4
1.6
0.6
3.5
1.4

（－3.9）（ －0.3）（ ＋1.8）（ ＋3.2）（ ＋0.2）（ －0.4）（ －1.4）（ －2.1）（ －1.9）（ －1.4）(－0.6)(－1.3)(＋0.3)(－1.2)(＋0.5)(－0.2)(0)(－0.6)(－0.8)（ +0.1）（+0.2）（ +0.2）（－1.2）

Transfer of intellectual property and APIs

● Generic drugs

14.4bln

Nasonex AG, Uritos AG and launch of new generic drugs contributed to sales increase

Operating
IncomeOrdinary
IncomeNet Income

0.8
1.1
0.8

1.5
1.8
2.1

＋0.7
＋0.7
＋1.3

■Operating Income

1.5bln（+0.7） （－0.9）◆ Operating Income margin increased 1.5 percentage points to 3.1%
●Cost of Sales Ratio : decreased 1.2 percentage points (49.2%⇒48.0%)・ (Decrease factor)Product mix, Efforts to reduce costs(Raw material costs, etc.)
・ (Increase factor)Drug price revisions, Generic drugs sales increase etc.

●R&D Ratio : increased 0.2 percentage points (10.7%⇒10.9%)
・R & D expenses flat (¥5.2bln ⇒¥5.2bln)●SG&A Ratio(excluding R&D expenses) : decreased 0.5 percentage points 38.5%⇒38.0%※ The classification of reporting segment ("Prescription drugs business"
・SG&A(excluding R&D) Decreased ¥0.5billion (¥18.6bln⇒¥18.1bln)
and "Healthcare business") was consolidated to a single segment from theDecrease of selling and general expenses
first quarter consolidated financial results for the fiscal year ending March
31, 2021
Net Income
2.1bln（+1.3） （+0.2）
Along with this, the classification of sales was changed to combine theexisting “New ethical drugs (Japan)” and “healthcare business” to "NewDue to the suspension of development of some development pipeline, partial exemption of
ethical drugs, etc. (Japan)".
repayment obligations for long-term debt from JST recorded debt exemption gain
There is no change in "New ethical drugs (overseas)" and "Generic drugs".

※We released a revision to our second-quarter financial results forecast on November 2, 2020 but these comparisons with the forecast show
differences from the forecast announced on May 12, 2020.

3

Consolidated Financial Results
for the Second Quarter and full year forecast
Sep/2020（Units: ¥million）

Sep/
2019

Sep/2020

ActualChangeMar/2021(revised
forecast)

forecast

Change※Mar/2020

109,983 108,000

Change(%)

Change(forecast)

Net sales (total)

48,29947,735－563－1.2

52,800－5,065

New ethicaldrugs,etc.（Japan）

33,74232,857－885－2.6

36,800－3,94377,53573,800－5,900New ethical drugs（Overseas）

390

527

＋136

＋35.1

300

＋227

1,490

1,100

＋100

14,166

14,351＋184＋1.3

15,600－1,24930,95733,000－1,900Operating Income

783

1,502

＋718

＋91.7

2,400

－898

7,503

7,800

－1,900Ordinary Income

1,076

1,813

＋736

＋68.5

2,600

－787

8,175

8,400

－1,800834

2,118＋1,284＋154.0

1,900

＋218

6,149

7,200

－400

Generic drugs

Net Income－7,500※We released a revision to our second-quarter financial results forecast on November 2, 2020 but these comparisons with the forecast show
differences from the forecast announced on May 12, 2020.
The classification of reporting segment ("Prescription drugs business" and "Healthcare business") was consolidated to a single segment from the first quarter consolidated financial
results for the fiscal year ending March 31, 2021.Along with this, the classification of sales was changed to combine the existing “New ethical drugs (Japan)” and “healthcare business”
to "New ethical drugs, etc. (Japan)". There is no change in "New ethical drugs (overseas)" and "Generic drugs".

4

Main Product Sales Update
Mar/2020

Change(forecast)

－0.6

14.6

14.5

－0.5

3.1

－1.3

2.6

7.5

－1.3

＋3.2 ＋496.9%

3.5

＋0.3

4.3

7.3

＋0.3

0.2

＋0.2

—

1.4

－1.2

1.1

1.7

－2.4

6.8

6.4

－0.4

－6.0%

5.9

＋0.5

13.3

12.5

＋0.8

3.5

3.0

1.6

－1.4

－47.3%

1.8

－0.2

5.8

2.2

－0.5

1.3

2.7

0.6

－2.1

－76.4%

0.6

0

6.0

2.4

－0.2

2.9

2.4

1.7

－0.7

－30.5%

1.8

－0.1

5.3

3.8

－0.4

3.3

3.0

1.8

－1.2

－38.9%

2.2

－0.4

6.5

4.3

－1.0

3.1

2.8

1.4

－1.4

－48.0%

2.2

－0.8

5.8

3.3

－1.6

1.1

1.1

1.1

0

＋0.9%

1.1

0

2.4

2.3

＋0.1

(Disinfectant)

0.6

0.6

1.0

＋0.4

＋64.5%

0.6

＋0.4

1.5

2.1

＋0.7

Montelukast tablets “KM”

5.3

5.4

4.5

－0.9

－16.8%

4.7

－0.2

11.5

10.2

－0.5

Mometasone Nasal 50mg
“KYORIN”
Imidafenacin tablets & OD
“KYORIN”

－

0.4

0.9

＋0.5

＋142.8

0.9

0

2.8

3.5

0

－

－

0.3

＋0.3

—

0.4 －0.１

－

0.8

－0.2

Flutiform(Combination drug for asthma treatment)

Desalex(Antiallergic Agent)

Beova(β3 adrenergic receptor agonist overactive bladdertherapeutics )Lasvic tablets(Oral new quinolone synthetic antibacterial agent)

Pentasa(Ulcerative colitis andCrohn’s disease treatment)

Uritos（Kyorin）(Therapeutic agent for overactive bladder)

Nasonex（Spray type allergic rhinitis remedy）

Kipresfor adult(Leukotriene Receptor Antagonist)for children
Mucodyne（Mucoregulant）

Milton(Disinfectant)

Rubysta

Generic
drugs

Sep/20Mar/2021(revised
forecast)（Units: ¥billion）

New
ethicaldrugs,
etc.(Jap
an)

Sep/2020

Sep/
2018

Sep/
2019

ActualChangeChange(%)

forecast

Change

6.1

6.7

6.4

－0.3

－5.6%

7.0

2.8

0

1.8

＋1.8

—

－

0.6

3.8

－

－

7.1

※

※We released a revision to our second-quarter financial results forecast on November 2, 2020 but these comparisons with the forecast show differences from theforecast announced on May 12, 2020.

5

R&D Expenses, Capex & Depreciation（unit : ¥million）

Mar/2020

Mar/2021(revised
forecast)+0.2

10,987

10,000

1,858

+35.9

3,590

5,100

1,716

+9.6

3,221

3,800

Sep/2017

Sep/2018

Sep/2019

Sep/2020

R&D expenses

7,179

5,030

5,191

5,200

Capitalexpenditure

1,989

949

1,367

Depreciation
expense

1,710

1,395

1,566

change<Capital expenditure (Actual/Forecast)>

Sep/2019

Sep/2020

Mar/2020

Mar/2021

Plant facilities

0.8

1.3

2.7

3.8

Equipment for control,
sales activities

0.3

0.2

0.4

0.4

Equipment for
research

0.2

0.3

0.5

0.9

（unit : ¥billion）(forecast)

6

Main R&D Activities -1 (as of November 5 2020)
Ph III ~ Application submitted
Stage※Changes from the previous announcement (Aug 3 2020)

Compound/
Code

Therapy area
/ActionApplication(10 / 2019)

KRPAM1977Y(Injection)

New quinolone
synthetic
antibacterial
agent

In-house

A novel quinolone injection developed specifically for thetreatment of 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, andable to administer once a day
3. Showed effectiveness against aspiration pneumonia,
pulmonary suppuration, and lung abscess

Application(3 / 2020)

KRP-116D

Interstitial
cystitis―

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

Japan

Overseas

OriginFeatures

Comments

・MK-7264, a drug for chronic coughing: MSD is working on Phase III development.
Concluded a memorandum of understanding for sales collaboration (May 2019).

KPR-108P(Expand the indication of Flutiform anti-asthmatic to pediatric patients) : Approved in 06/2020

POC Project (Ph I ~ Ph II)
Stage
Japan

Overseas

PhⅠ(7/2020)

PhⅠb/Ⅱa(aTyrpharma)Compound/
Code

Therapy area
/ActionKRP-R120Interstitial lungdisease :ILD(pulmonary
sarcoidosis)

OriginaTyrpharmaFeatures

Comments

It is a fusion protein drug having the action to suppress, bybinding to neuropilin-2 (NRP2) receptor, the excessive activationof immune cells, and is a potential first-in-class therapy to treat
inflammatory diseases such as pulmonary sarcoidosis.

※Regarding the gene therapy agent "Ad-SGE-REIC", we decided it would be difficult to realize the product profile initially set and terminated its development.

7

Main R&D Activities -1 (as of November 5 2020)※Changes from the previous announcement (Aug 3 2020)

Licensing development (License-in)
Stage
Japan
PhⅡ(12/2
019)
ASKA
PharmaceuticalOverseas

Compound/
Code

Therapy area
/ActionBenign
Prostatic
Hyperplasia

AKP-009※

OriginFeatures

ASKA
Pharmaceuti
calNovel androgen receptor modulator mode of action with thepotential to 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 andcommercialization rights for AKP-009 within
Japan (09/2020)

Licensing development (License-out)
Stage/
Overseas

Compound/Code

Licensee /Collaborative
research

Therapyarea/Action

OriginFeatures

Comments

In-house

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

License agreement with BMS(12/2015)

Priothera

In-house

Sphingosine-1-Phosphate Receptor Agonist

Transfer of intellectual property(patents anddata required for the development andsale) and APIs
(9/2020)

OtonomyIn-house

Candidate compound for sensorineural hearing
loss

Grant a global exclusive license to develop,
manufacture and commercialize thetherapeutic agent for the treatment of otic
disorders such as hearing loss(8/2020)
Kyorin Pharmaceutical reserves acommercialization right of the therapeutic
agent in Japan
Otonomy’s Code: OTO-6XX

PhⅠ

FPR-2 agonist
programBMS

PhⅠ

KRP-203※

Nonclinical

Compound for
Sensorineural
Hearing Loss

Nondisclosure

8Reference

P&L Summary: Consolidated Results – (1)＜ Breakdown ＞
Year on Year

Sep/2019

Sep/2020■ Sales¥47,735mil－¥563mil）（－¥885mil）● New ethical drug, etc. (Japan)（unit : ¥million）¥32,857mil

Actual% Sales

Actual% Sales% Change

Net sales (total)

48,299100.0%

47,735100.0%

－1.2%

－563

New ethicaldrugs,etc.（Japan）

33,74269.9%

32,857

68.8%

－2.6%

－885

New ethical drugs（Overseas）

390

0.8%

527

1.1%

＋35.1%＋136

Generic drugs（

Change20.3（2Q）
21.3（2Q）(¥billion)
・ Flutiform
6.7⇒
6.4 （ －0.3）
・ Desalex0⇒
1.8 （ ＋1.8）
・ Beova
0.6⇒
3.8 （ ＋3.2）
・ Lasvic⇒
0.2 （ ＋0.2）
・ Pentasa
6.8⇒
6.4 （ －0.4）
・ Uritos
3.0⇒
1.6 （ －1.4）
・ Nasonex
2.7⇒
0.6 （ －2.1）
・ Kipres
5.4⇒
3.5 （ －1.9）
・ Mucodyne
2.8⇒
1.4 （ －1.4）● New ethical drug sales (Overseas)

14,16629.3%

14,351

30.1%

＋1.3%

＋184

¥527mil・ Transfer of intellectual property and APIs (KRP-203)● Generic drugs<Subsidiaries and Equity-method Affiliates>
Consolidated 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.

（ ＋ ¥136mil）¥14,351mil（ ＋¥184mil）・Although sales declined due to drug price revisions, Nasonex AG,
Uritos AG and launch of new generic drugs in June, contracts
manufacturing from other companies, etc. contributed to sales

9

P&L Summary: Consolidated Results – (2)
Sep/2019（unit : ¥million）

Sep/2020＜ Breakdown ＞

Actual% Sales

Actual% Sales

Sales

48,299100.0%

47,735100.0%

－1.2%

－563

Cost of Sales

23,75049.2%

22,913

48.0%

－3.5%

－837

Gross Profit

24,54950.8%

24,822

52.0%

+1.1%

＋273

SG&A
(Incl. R&D expenses)

23,765(5,191)

49.2％(10.7%)

23,320(5,200)48.9％(10.9%)－1.9%(+0.2%)－445(+9)

Operating
Income

783

1.6%

1,502

3.1%

＋91.7%＋718◆ R&D Ratio :up 0.2 percentage points Y/Y (10.7%→10.9％)＊¥5.2bln→¥5.2bln

Non-Operating Income

351
59

0.7%
0.1%

356
45

0.7%
0.1%

+1.4%
－23.2%+4－13◆SG&A (exclude R&D) Expenses :Ordinary Income

1,076

2.2%

1,813

3.8%

+68.5%+736

Extraordinary Profits
Extraordinary Losses

123
21

0.3%
0.0%

1,074
12

2.3%
0.0%

+766.6%－41.6%

＋950
－8

1,178

2.4%

2,874

6.0%

+143.9%+1,696

Corporate, inhabitantsand enterprise taxes

354

0.7%

809

1.7%

+128.6%+455

Tax adjustments

－9

0.0%

－53

－0.1%

－463.3%－43

Net Income

834

1.7%

2,118

4.4%

+154.0%+1,284

Non-Operating Expenses

Income before
income taxes% Change

Change◆Cost of Sales Ratio :down 1.2 percentage points Y/Y (49.2％→48.0％)
・ Product mix
・ Efforts to reduce costs(Raw material costs, etc.)

down 0.5 percentage Points Y/Y(38.5％→38.0％)＊¥18.6bln→¥18.1bln (－¥0.5bln）
・Decrease of selling and general costs■Operating Income ¥1,502mil (＋ ¥718mil)＊Operating Income margin increased 1.5percentage
points to 3.1%

■Net Income ¥2,118mil (＋ ¥1,284mil)＊ Debt exemption gain for long-term debt

¥1.1bln■Dividend per share(interim dividend) ¥30.0

10

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

Mar/2020
Actual%totalActual% total117,058

68.4%

113,860

67.1%

Mk securities
Inventory
Other

31,92547,449993
33,283
3,406

Fixed Assets

54,102

Tangible assets
Intangible assets
Investments

22,721
3,332
28,047

Cash, deposits
Notes and accounts receivable

Sep/2020
change－3,197

―

―

31.6%

55,92932.9%+1,826―

23,105
3,306
29,517――■ Fixed Assets ：＋￥1,826mil

・ Tangible Assets
・ Intangible Assets
・ Investments（＋¥383mil）（－ ¥26mil）（ ＋ ¥1,469mil）■ Current Liabilities ：－ ¥516mil

・ Notes Payable
・ Other（（■ Non-Current Liabilities ：－ ¥1,544mil

169,789

100.0%－1,370Current Liabilities

31,32818.3%

30,812

18.1%

－516

Notes payable
Other

9,776
21,551―

Non-Current Liabilities

17,121

10.0%

Total Liabilities

48,449Owner’s Equity

10,175――

15,576

9.2%－1,54428.3%

46,38927.3%－2,060118,534

69.3%

118,045

69.5%

－488

4,176

2.4%

5,355

3.2%

+1,1786,922
36－2,782―7,944
17－2,606――

Total Equity

122,710

71.7%

123,400

72.7%

+689

Total Liabilities and Equity

171,160

100.0%

169,789

100.0%－1,370

Unrealized holding gain (loss) on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans－ ¥ 3,197mil―

100.0%

Other Comprehensive Income■Current Asset ：Year on Year37,13931,8181,300
40,248
3,353

171,160

Total Assets＜ Breakdown ＞

20,636・ Cash, deposits（ ＋ ¥5,213mil）
・ Notes and accounts receivable （－ ¥ 15,630mil）
・ Mk securities（ ＋ ¥ 307mil ）・ Inventory（ ＋¥6,964mil）・ Other（－ ¥52mil）＋ ¥398mil）－¥914mil）

11

Financial summary (Consolidated)（unit : ¥million）

Sep/2018

Sep/2019

Sep/2020

Mar/2020

Mar/2021

Mar/2021(Revised forecast)(Original forecast)

109,983(1,490)108,000(1,100)115,500(1,000)52,950(48.1%)――

49,528(45.0%)

―

―

6,149
(5.6%)

10,000(9.3%)
7,800(7.2%)
8,400(7.8%)
7,200(6.7%)

9,600(8.3%)
9,700(8.4%)
10,200(8.8%)
7,600(6.6%)

36.98

107.35125.68132.67

700

700

700

―

―

196,255

165,895

169,789

171,160――

Total Equity

164,618

119,516

123,400

122,710――

BPS (¥)

2228.812,086.31

2,153.51

2,142.07――

ROE (%)

1.4%

0.7%

1.7%

5.0%

―

―

Equity Ratio (%)

83.9%

72.0%

72.7%

71.7%

―

―

Employees

2,334

2,292

2,282

2,271

―

―

Capital Expenditure

949

1,367

1,858

3,590

5,100

5,100

Depreciation Expense

1,395

1,566

1,716

3,221

3,800

3,800

Sales
(Exports)

50,360(604)

48,299(390)

Cost of Sales（cost of sales ratio ）％

23,758(47.2%)

23,750(49.2%)

SG&A
Ratio to Sales (%)

23,749(47.2%)

23,765(49.2%)

R&D Expenses
Ratio to Sales (%)

5,030(10.0%)

5,191(10.7%)

Operating Income
Ratio to Sales (%)

2,852(5.7%)

783(1.6%)

Ordinary Income
Ratio to Sales (%)

3,183(6.3%)

1,076(2.2%)Net Income
Ratio to Sales (%)

2,217(4.4%)

834(1.7%)

47,735(527)
22,913(48.0%)
23,320(48.9%)
5,200(10.9%)
1,502(3.1%)
1,813(3.8%)
2,118(4.4%)EPS (¥)

30.04

14.56

Capital700

Assets

10,987(10.0%)
7,503(6.8%)
8,175(7.4%)

12

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(1)＜ Breakdown ＞
Sep/2019

Sep/2020■ Sales¥41,116mil

Year on Year（ －¥550mil）● New ethical drugs, etc. (Japan)¥31,813mil（unit : ¥million）

Actual% Sales

Actual%Sales%
ChangeChangeNet sales (total)

41,667100.0%

41,116 100.0%

－1.3%

－550

New ethicaldrugs,etc.（Japan）

32,37377.7%

31,813

77.4%

－1.7%

－560

New ethical drugs（Overseas）

293

0.7%

433

1.1%

＋47.8%＋140

20.3（2Q）(billion)・ Flutiform
6.7⇒
・ Desalex0⇒・ Beova
0.6⇒
・ Lasvic⇒・ Pentasa
6.8⇒
・ Uritos
3.0⇒
・ Nasonex
2.7⇒
・ Kipres5.4⇒
・ Mucodyne
2.8
⇒

8,999

21.6%

8,869

21.6%

－1.5%

－129

21.3（2Q）

6.4
1.8
3.8
0.2
6.4
1.6
0.6
3.5
1.4

（ －0.3）（ ＋1.8）（ ＋3.2）（ ＋0.2）（ －0.4）（ －1.4）（ －2.1）（ －1.9）（ －1.4）● New ethical drugs (Overseas)¥433mil

Generic drugs（ －¥560mil）（ ＋ ¥140mil）

・ Transfer of intellectual property and APIs
● Generic Drugs¥8,969mil（ － ¥129mil）

・Although sales of Nasonex AG and Uritos AG increased,sales in wholesalers channel decreased.

13

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(2)＜ Breakdown ＞
Sep/2019

Sep/2020（unit : ¥million）

Actual% Sales

Actual% Sales100.0%

Cost of Sales

41,667
20,63849.5%

41,116
19,773Gross Profit

21,02950.5%

SG&A(R&D Expenses)

21,386(4,717)

Operating Income% Change

Change100.0%－1.3.%

－550

48.1%

－4.2%

－864

21,34351.9%＋1.5.%＋314

51.3%(11.3%)

21,021(4,687)51.1%(11.4%)－1.7%(－0.6%)

－364
(－30)

－357

－0.9%

321

0.8%

―

＋678

Non-operating Expenses

641
41

1.5%
0.1%

643
28

1.6%
0.1%

＋0.2%
－29.8.%＋1－12

Ordinary Income

243

0.6%

936

2.3%

+284.1%

+692

―
14

―
0.0%

1,073
4

2.6%
0.0%

―
－66.2%+1,073
－9

229

0.6%

2,005

4.9%

+773.1%+1,775

Corporate, inhabitantsand enterprise taxes

107

0.3%

604

1.5%

+461.5%+496

Tax adjustments

－15

0.0%

－

―

―

+15

137

0.3%

1,400

3.4%

+917.4%+1,263

Sales

Non-Operating Income

Extraordinary Profits
Extraordinary Losses
Income before
income taxes

Net Income◆Cost of Sales Ratio :down 1.4 percentage points Y/Y (49.5％→48.1％)
・(Increase factor)Drug price revisions
・(Decrease factor) Product mix
Efforts to reduce costs(Raw material costs, etc.)◆R&D Ratio :up 0.1percentage points Y/Y(11.3％→11.4％)＊¥4.7bln→¥4.7bln◆SG&A (exclude R&D) expenses :down 0.3 percentage points Y/Y (40.0％→39.7％)＊¥16.7bln→¥16.3bln(－￥0.4bin)
・Efforts to reduce costs
・Decrease of selling and general costs due to voluntary
restriction on promotion activities■Operating Income ¥321mil （＋¥678mil）＊Although sales decrease, due to the cost of sales ratio
decrease, gross profit increased
Furthermore, profits increased due to a decrease in SG &A expenses (excluding R & D expenses).

■Net Income ¥1,400mil（＋ ¥1,263mil）＊ Debt exemption gain for long-term debt

¥1.1Bil14

BS Summary: KYORIN Pharmaceutical(Non-consolidated)（unit : ¥million）

Current Assets
Cash, deposits
Accounts receivable
Mk securities
Inventory
Other

Fixed Assets
Tangible assets
Intangible assets
Investments

Mar/2020
Actual% totalActual

121,234

75.5%

119,764

18,32342,831
993
26,92732,157―

24,96327,6791,300
32,88732,93439,33624.5%

40,809

―

7,119
2,688
31,001

7,328
2,741
29,265＜ Breakdown ＞

Sep/2020% total
74.6%－1,469

―

―

25.4%

＋1,473――

160,570

100.0%

160,574

100.0%＋4

Current Liabilities

27,73017.3%

28,125

17.5%

＋395

10,294
17,436―

9,942
18,183

Non-Current Liabilities

13,433

8.4%

12,5577.8%－876

Total Liabilities

41,16425.6%

40,682

25.3%

－481

Owner’s Equity

112,52570.1%

111,994

69.7%

－530

6,880

4.3%

7,896

4.9%

＋1,015

Total Equity

119,405

74.4%

119,891

74.7%

＋485

Total Liabilities and Equity

160,570

100.0%

160,574

100.0%＋4

Other

Valuation andtranslation adjustments―■Current Assets ：－¥1,469mil
・ Cash, deposits
・ Accounts receivable
・ Inventory
・ Other

Total Assets

Notes Payable Accounts payable(Year on Year)change（ ＋¥6,639mil）（－¥15,151mil）（ ＋¥5,959mil）（ ＋ ¥776mil）■Fixed Assets ： ＋ ¥1,473mil・Tangible Assets
・Intangible Assets
・Investments（ －¥208mil）（ － ¥53mil）（＋ ¥1,735mil）■ Current Liabilities ： ＋ ¥395mil
・ Accounts payable
・Accounts payable - others（ － ¥351mil）（＋ ¥1,014mil）―■ Non-Current Liabilities ： － ¥876mil
・ Long-term debt（－ ¥1,277mil）

15

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

Sep/2018

Sep/2019

Sep/2020

Sales(Exports)

43,957(477)

41,667(293)

Cost of Sales（cost of sales ratio ）％

20,747(47.2%)

20,638(49.5%)

SG&A
Ratio to Sales (%)

21,541(49.0%)

21,386(51.3%)

R&D Expenses
Ratio to Sales (%)

4,556(10.4%)

4,717(11.3%)

Operating Income
Ratio to Sales (%)

1,669(3.8%)－357(－0.9%)

Ordinary Income
Ratio to Sales (%)

1,967(4.5%)

243(0.6%)Net Income
Ratio to Sales (%)

1,319(3.0%)

137(0.3%)

41,116(433)
19,773(48.1%)
21,021(51.1%)
4,687(11.4%)
321(0.8%)
936(2.3%)
1,400(3.4%)EPS (¥)

17.76

1.85

Capital4,317

AssetsMar/2020

Mar/2021

Mar/2021(Revised forecast)(Original forecast)

96,336(1,260)93,900(900)

100,700(700)

47,339(49.1%)――

44,675(46.4%)

―

―

3,996
(4.1%)

9,000(9.6%)
5,100(5.4%)
6,000(6.4%)
5,500(5.9%)

8,400(8.3%)
7,300(7.2%)
8,200(8.1%)
6,200(6.2%)

18.86

53.82

―

―

4,317

4,317

4,317

―

―

145,896

156,318

160,574

160,570――

Total Equity

123,018

116,975

119,891

119,405――

BPS (¥)

1,656.41

1,575.04

1,614.30

1,607.77――

ROE (%)

1.0%

0.1%

1.2%

3.3%

―

―

Equity Ratio (%)

84.3%

74.8%

74.7%

74.4%

―

―

Employees

1,606

1,537

1,504

1,502

―

―

Capital Expenditure

193

185

207

441

700

700

Depreciation Expense

521

679

684

1,337

1,500

1,500

10,038(10.4%)
4,321(4.5%)
5,340(5.5%)

16