Second Quarter Consolidated Financial Results
for the Fiscal Year Ending March 31, 2022
1. Overview of Consolidated Financial Results
2. Highlights of Business Performance
3. Consolidated Financial Results
4. Consolidated Financial Results and Forecast
5. Main Product Sales Update
6. R&D Expenses, Capex & Depreciation
7. Development pipeline

P.2
P.3
P.4
P.5
P.6
P.7
P.8～9

【Reference】
8. P&L Summary
9. BS Summary
10. Financial summary
11. KYORIN Pharmaceutical result

P.10～11
P.12
P.13
P.14～17

November 8, 2021

KYORIN Holdings, Inc.

■Disclaimer
This material contains performance forecasts, goals and plans, and other forward-looking
statements related to the Group.
These statements are based on the judgment of the Group′s assumptions and outlooks
based on the information and forecasts available at the time of preparation of this material,and contain known or unknown risks and uncertainties. Therefore, due to various factorsthat may occur, the actual performance, progress / success / failure of the development
and other insights may differ significantly from the description. It also contains
information about medicines (including those under development), but the description is
not for the purpose of advertising or medical advice.

1Overview of Second Quarter Consolidated Financial Results
for the Fiscal Year Ending March 31, 2022
Units:
millions of yen

Sep / 2018

Sep / 2019

Sep / 2020

Sep / 2021

％ Y/YMarch / 2022
（Forecast）

Net sales

50,36048,29947,735

49,102

Operating income

2,852

783

1,502

－68

—

3,300

－43.0%

Ordinary income

3,183

1,076

1,813

285

－84.2％

3,800－41.1%Net income

2,217

834

2,118

121

－94.3％

2,700－56.0%

n/a

102,600％ Y/Yn/a

Second Quarter Consolidated Financial Results for the Fiscal Year Ending March 31, 2022
[Net sales] Although the respiratory and otolaryngology markets, which are our priority areas, remained sluggish due to the impact of
NHI drug price revisions and the spread of the new coronavirus infection etc., sales of New ethical drugs increased by
active promotion, and sales of long-listed products increased due to quality problem of some generics drug companies,
then sales of New ethical drugs, etc. (Japan) were higher than the previous year. In addition, Generic drugs increased,
and overall sales were 49,102 million yen.
[Profit]Despite an increase of sales, gross profit decreased to 22,369 million yen due to an increase in the cost ratio (24,822
million yen in same period a year ago). Although an upfront payment for a drug for treating chronic cough was posted,
SG&A expenses(including R & D expenses) was 22,438 million yen, down from year on year due to cost reduction, etc.
(23,320 million yen in same period a year ago). As a result, Operating loss was 68 million yen, Ordinary income was 285
million yen, Net income was 121 million yen.

Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2022
The forecast for the full year announced on May 11, 2021 remain unchanged at this moment.
There is no change to the dividend plan announced on May 11, 2021 (Annual dividend of 52 yen per share).
*From the beginning of the current term for the fiscal year ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar 31,2020)
etc. have been applied, and the revenue recognition standards for the previous second quarter is different from the current second quarter, the amount of increase / decrease
compared to the current second quarter and the YoY change rate (%) are not shown. There is no impact on operating loss, ordinary loss, and net loss, from the application ofthe "Accounting Standard for Revenue Recognition".

2

Highlights of Business Performance(Units : ¥ billion)

Net sales increased

50

Cost of sales ratio increased<Reasons of increase>
Cost ofsales ratio

48.0%

40

Sales

Sales

20

5.2
(excluding R&D)

10

18.1

<Reason of decrease>⚫ Product mix

26.7
Gross profit decreased

R&D
費

4.4
SG&A

23.3

SG&A cost decreased⚫ Cost of R&D decreased

販管費（研究開発費除く）

SG&A(excluding R&D)

Operatingincome

18.1

1.5

SG&A

22.4

Upfront payment for AKP-009 in FY2020⚫ SG&A (excluding R&D) remained flat
Cost reduction

Operatingincome－0.1

0

Sep / 2020

⚫ Loss on retirement of inventories, etc. increased

49.1 研究開発

R&D

SG&A

⚫ Sales of Generic drugs increased

Cost of
売上原
sales
価

22.9
47.7

(Kyorin Pharmaceutical : 6% range)

54.4%
48.0
%

Cost ofsales

30⚫ Impact of NHI drug price revisions

Cost ofsales ratio
原価率

Upfront payment for Gefapixant citrate

Operating income decreased

Sep / 2021
3

Second Quarter Consolidated Financial Results
for the Fiscal Year Ending March 31, 2022
（Year on Year）（Forecast）■Net sales(Units : ¥ billion)

Sep / 2020

Sep / 2021

Change¥ 49.1bln （ n/a ） （＋1.8）●New ethical drugs, etc. (Japan)¥ 33.3bln （ n/a ） （＋1.4）

21.3（2Q）

Net Sales

47.7

49.1

n/a

New ethical drugs,
etc. (Japan)

32.9

33.3

n/a

New ethical drugs(Overseas)

0.5

0.3

n/a

Generic drugs

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

6.4
1.8
3.8
0.2
6.4
1.6
0.6
3.5
1.4

22.3（2Q）

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

●New ethical drugs (Overseas)

14.4

15.5

n/a

1.5

－0.1

－1.6

Ordinary Income

1.8

0.3

－1.5

Net Income

2.1

0.1

－2.0

（ －0.1） （ －0.3）（ ＋0.8） （ －0.2）（ ＋0.5） （ ＋0.2）（ ＋0.6） （ －0.3）（ ＋0.7） （ ＋1.1）（ －0.9） （ ＋0.2）（ ＋0.1） （ ＋0.2）（ ＋0.1） （ ＋0.6）（ ＋0.2） （ ＋0.4）¥ 0.3bln （ n/a ） （－0.2）

Sales of transfer of intellectual property and APIs in FY2020●Generic drugs

Operating
Income

6.3
2.6
4.3
0.8
7.1
0.7
0.7
3.6
1.6

¥ 15.5bln （ n/a ） （＋0.7）

Sales increase in 3 AG products (Kipres AG, etc.)
New generic drugs in June contributed to sales■Operating income¥ －0.1bln （－1.6） （＋0.7）●Cost of Sales ratio : 54.4％（2Q FY2020: 48.0％）[Reason of decrease] Product mix[Reason of increase] NHI drug price revisions, Increase in sales of Generic drugs
Increase in loss on retirement of inventories, etc.

●R&D : ¥ 4.4bln（2Q FY2020 : ¥ 5.2bln）
Upfront payment for AKP-009 in FY2020*The impact of the application of the "Accounting Standard for Revenue
Recognition" was sales decreased by 611 million yen and SG&A expenses
decreased by 611 million yen, and there is no impact on operating loss,
ordinary loss, and net loss.

●SG&A (excluding R&D expenses) : ¥ 18.1bln（2Q FY2020：¥ 18.1bln）
Decrease in sales and labor costs, Increase in patents royalty（Upfront payment for Gefapixant citrate）■ Net Income¥ 0.1bln （－2.0） （＋0.4）

4

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

Sep / 2020

Sep / 2021

ChangeYoY
ChangeSep / 2021（％）

(Forecast)

ChangeMar / 2021

Mar / 2022
(Forecast)

Net sales

47,735

49,102n/an/a47,300＋1,802102,904

102,600

New ethical drugs,
etc. (Japan)

32,85733,279n/an/a31,900＋1,37969,73568,600New ethical drugs(Overseas)

527

342

n/a

n/a

500

－158

996

800

Generic drugs

14,351

15,481n/an/a

14,800＋681

32,172

33,100Operating Income

1,502

－68

－1,570

—

－800

＋732

5,786

3,300

Ordinary Income

1,813

285

－1,527－84.2%

－600

＋885

6,447

3,800

Net Income

2,118

121

－1,996－94.3%

－300

＋421

6,130

2,700

From the beginning of the first quarter for the Fiscal Year Ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar.31,2020) etc.
have been applied, and the second quarter results, second quarter forecast, and the full-year forecast are based on the "Accounting Standard for Revenue Recognition".

5

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(New quinolone synthetic antibacterial agent)New
ethicaldrugs,
etc.
(Japan)Pentasa(Ulcerative colitis and Crohn’s disease treatment)

Uritos (Kyorin)(Therapeutic agent for overactive bladder)

Nasonex(Spray type allergic rhinitis remedy)

Kipres(Leukotriene Receptor Antagonist)

Mucodyne(Mucoregulant)

Milton(Disinfectant)

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

Generic
drugs

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

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

Sep /
2021

YoY
Change

Sep /
2021

Mar /
2022

Sep /
2019

Sep /
2020

6.7

6.4

6.3

－0.1

－1.2%

6.6

－0.3

13.3

13.9

0

1.8

2.6

＋0.8

＋42.9％

2.8

－0.2

5.7

7.2

0.6

3.8

4.3

＋0.5

＋14.9%

4.1

＋0.2

7.3

8.6

－

0.2

0.8

＋0.6 ＋431.3％

1.1

－0.3

0.9

2.8

6.8

6.4

7.1

＋0.7

＋12.0%

6.0

＋1.1

12.8

11.7

3.0

1.6

0.7

－0.9

－57.0%

0.5

＋0.2

2.3

1.0

2.7

0.6

0.7

＋0.1

＋11.6%

0.5

＋0.2

2.8

1.8

5.4

3.5

3.6

＋0.1

＋1.6%

3.0

＋0.6

8.3

6.9

2.8

1.4

1.6

＋0.2

＋10.8%

1.2

＋0.4

3.3

2.9

1.1

1.1

1.0

－0.1

－5.9%

1.1

－0.1

2.1

2.2

0.6

1.0

1.0

0

－0.8%

1.0

0

2.0

2.1

5.4

4.5

5.1

＋0.6

＋13.2%

4.0

＋1.1

10.8

9.2

0.4

0.9

1.0

＋0.1

＋13.7％

1.0

0

3.8

3.5

－

0.3

0.4

＋0.1

＋18.1%

0.4

0

0.7

0.7

Change（％）

Change(Forecast)

Mar /
2021

(Forecast)6

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

Sep / 2018

Sep / 2019

Sep / 2020

Sep / 2021

Change（％）

Mar / 2021

Mar / 2022
(Forecast)

5,030

5,191

5,200

4,364

－16.1

9,703

9,200

Capital expenditure

949

1,367

1,858

751

－59.6

4,307

4,500

Depreciation expense

1,395

1,566

1,716

1,831

＋6.7

3,564

3,900

R&D expenses<Capital expenditure (Actual / Forecast)>
Mar / 2022

Sep / 2020

Sep / 2021

Mar / 2021

Plant facilities

1.3

0.3

3.1

3.3

Equipment for control,
sales activities

0.2

0.1

0.3

0.5

Equipment for
research

0.3

0.3

0.9

0.7

(Units of billion)(Forecast)7

Development pipeline
Main R&D Activities -1 (as of November 8 2021)
Ph III ～ Application submitted
Stage
Compound / CodeJapan

Indication

OriginFeatures

Comments

Overseas

Launch(Apr 2021)―

Zymso IntravesicalSolution 50%/KRP-116DInterstitial cystitis―

Evaluation committee on unapproved or offlabeled drugs with high medical needs “Dimethyl
sulfoxid”

Application(Feb 2021)
MSD―

Gefapixant citrate(INN)

Chronic coughing(planned)

Merck

Selective P2X3 receptor antagonist expected asDistribution
the treatment of refractory chronic cough (RCC) or agreement in
unexplained chronic cough (UCC)
Japan with
MSD（Apr
2021）

POC Project (Ph I ～ Ph II)
Stage
Code
Japan

Overseas

Ph Ib / IIa
Ph I(Jul 2020) (aTyr pharma,
USA)

Ph I
(Apr 2021,
England)

Proposed
Indication

OriginFeatures

KRP－R120Interstitial lungdisease : ILD(pulmonary
sarcoidosis)

aTyr pharma 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.

KRP-A218

Rhinovirus
infection at risk ofpotentially severe

In-house

Comments

It is antiviral drug that suppresses viral growth bytargeting host molecules8Development pipeline
Main R&D Activities -2 (as of November 8 2021)
Licensing development (License-in)Stage
OverseasJapan
Ph II (Dec 2019)
ASKA
Pharmaceutical

―

Code

AKP-009

Proposed
Indication

OriginFeatures

Benign Prostatic ASKA
Novel androgen receptor modulator
Hyperplasia
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 andcommercialization rights for AKP-009 in
Japan (Sep 2020)*Additional Ph I study at a higher dose started (Sep 2021)

Licensing development (License-out)Stage

Compound /CodeLicenseePh I

FPR-2 agonist BMS
programPh I

KRP-203

Priothera

Nonclinical Compound for Otonomy

Sensorineural
Hearing Loss

Therapyarea / Action

OriginFeatures

Comments

Nondisclosure

In-house FPR-2 agonists that mainly inhibit
the migration of neutrophils andexhibit anti-inflammatory action.

License agreement with BMS (Dec 2015)―

In-house Sphingosine-1-Phosphate Receptor
AgonistTransfer of intellectual property(patents
and data required for the development andsale) and APIs (Sep 2020)

Sensorineural In-house Candidate compound forsensorineural hearing loss
Hearing Loss

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

9

（Reference）

P&L Summary: Consolidated Results – (1)<Breakdown>
Sep / 2020

(Year on Year)

Sep / 2021

(Units : ¥ million)■SalesActual% Sales

Actual% Sales Change（%）

Change47,735 100.0%

49,102 100.0%

n/a

n/a

New ethical drugs,
etc. (Japan)

32,85768.8%

33,279

67.8%

n/a

n/a

New ethical drugs(Overseas)

527

1.1%

342

0.7%

n/a

n/a

14,35130.1%

15,481

31.5%

n/a

n/a

Generic drugs¥ 33,279mil
・ Flutiform・ Desalex
・ Beova・ Lasvic・ Pentasa
・ Uritos
・ Nasonex
・ Kipres・ Mucodyne

21.3（2Q）

6.4
1.8
3.8
0.2
6.4
1.6
0.6
3.5
1.4

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.

（ n/a ）

22.3（2Q）

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

6.3
2.6
4.3
0.8
7.1
0.7
0.7
3.6
1.6

（－0.1）（＋0.8）（＋0.5）（＋0.6）（＋0.7）（－0.9）（＋0.1）（＋0.1）（＋0.2）●New ethical drugs (Overseas)¥ 342mil<Subsidiaries and Equity-method Affiliates>（ n/a ）

●New ethical drugs, etc. (Japan)(billion)

Net Sales (total)¥ 49,102mil（ n/a ）・ Sales of transfer of intellectual property and APIs in FY2020●Generic drugs¥ 15,481mil（ n/a ）・ Sales increase in 3 AG products (Kipres AG, etc.)
・ New generic drugs in June contributed to sales

From the beginning of the first quarter for the Fiscal Year Ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar.31,2020) etc.
have been applied, and the second quarter results, second quarter forecast, and the full-year forecast are based on the "Accounting Standard for Revenue Recognition".

10

（Reference）

P&L Summary : Consolidated Results － (2)

Sep / 2020<Breakdown>

Sep / 2021

(Year on Year)(Units : ¥ million)

Actual% Sales

Actual% Sales

ChangeChange（%）◆Cost of sales ratio : 54.4％(

n/a【Reasons of increase】
・ Impact of NHI drug price revisions
・ Sales of Generic drugs increased
・ Loss on retirement of inventories, etc. increased【Reasons of decrease】
・ Product mix

Sales

47,735 100.0%

49,102 100.0%

n/a

n/a

Cost of Sales

22,91348.0%

26,732

54.4%

n/a

n/a

Gross Profit

24,82252.0%

22,369

45.6%

n/a

n/a

SG&A
(R&D expenses)

23,32048.9％(5,200) (10.9%)

22,438(4,364)45.7％
n/a(8.9%) (－16.1%)

Operating Income

1,502

3.1%

Non-Operating Income
Non-Operating Expenses

356
45

0.7%
0.1%

402
48

0.8%
0.1%

＋12.9%＋5.8%

Ordinary Income

1,813

3.8%

285

0.6%

－84.2%◆SG&A (exclude R&D) Expenses : 36.8%－1,527(n/aExtraordinary profits
Extraordinary Losses

1,074
12

2.3%
0.0%

0
16

0.0%
0.0%

－100.0%＋31.5%－1,074＋3

Income before
income taxes

2,874

6.0%

269

0.5%

－90.6%－2,605

Corporate, inhabitantsand enterprise taxes

809

1.7%

136

0.3%

－83.1%－672

Tax adjustments

－53

－0.1%

10

0.0%

—

＋63

Net Income

2,118

4.4%

121

0.2%

－94.3%－68 －0.1％

—

)

n/a
(
n/a
(－835) ◆R&D Ratio : 8.9％
・ ¥ 5.2bln→¥ 4.4bln－1,570Upfront payment for AKP-009 in FY2020

)

＋45
＋2

－1,996)・ ¥ 18.1bln（2Q FY2020 : ¥ 18.1bln）
Increase in patents royalty : Upfront payment for Gefapixant citrate
Decrease in sales and labor costs■Operating Income－¥ 68mil（－ ¥ 1,570mil）■Net Income¥ 121mil（－ ¥ 1,996mil）■Dividend per share (interim dividend)¥ 20.0From the beginning of the first quarter for the Fiscal Year Ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar.31,2020) etc.
have been applied, and the second quarter results, second quarter forecast, and the full-year forecast are based on the "Accounting Standard for Revenue Recognition".

11

（Reference）

BS Summary: Consolidated Results(Units : ¥ million)

Current Assets

Mar / 2021
Actual% totalActual% totalChange114,02768.2%

112,81168.6%－1,215

Mk securities
Inventory
Other

27,44540,446
3,399
38,5684,166

Fixed Assets
Tangible assets
Intangible assets
Investments

Cash, deposits
Notes and accounts receivable――

53,09931.8%

51,59731.4%－1,502

23,896
3,785
25,417―23,1983,489
24,908――■Fixed Assets ：－2,717・ Tangible Assets
・ Intangible Assets
・ Investments＋347

167,126

Current Liabilities

27,407

16.4%

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

Total Equity
Total Liabilities and Equity■Current Asset :―Total Assets

Non-Current
Liabilities
Total Liabilities
Owner’s Equity
Other Comprehensive
Income(Year on Year)

31,987
34,716
3,600
38,2354,271

100.0%

Notes payable
Other<Breakdown>

Sep / 2021

6,985
20,422―

164,408

100.0%

27,754

16.9%

8,914
18,840――15,0579.0%

14,7269.0%－330

42,464
120,339

25.4%

25.8%

＋16

72.0%

42,480117,84471.7%－2,495

4,322

2.6%

4,083

2.5%

－239

6,639
－40
－2,275―6,146
52－2,115――

124,661
167,12674.6%
100.0%

121,927 74.2%
164,408 100.0%

・ Cash, deposits
・ Notes and accounts receivable
・ Mk securities
・ Inventory
・ Other■Current Liabilities :・ Notes Payable
・ Other■Non-Current Liabilities :－ ¥ 1,215mil（ ＋ ¥ 4,542mil）（ － ¥ 5,729mil）（+ ¥ 200mil）（ － ¥ 333mil）（ ＋ ¥ 104mil）－ ¥ 1,502mil（（（－ ¥ 697mil）－ ¥ 295mil）－ ¥ 508mil）＋ ¥ 347mil（ ¥ ＋1,928mil）（ ¥ －1,581mil）－ ¥ 330mil－2,734－2,71712

（Reference）

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 (¥)
CapitalAssetsTotal Equity
BPS (¥)
ROE
Equity Ratio (%)
Employees
Capital Expenditure
Depreciation Expense

Sep / 201948,299(390)
23,750(49.2%)
23,765(49.2%)
5,191(10.7%)
783(1.6%)
1,076(2.2%)
834(1.7%)
14.56
700
165,895
119,516
2,086.31
0.7%
72.0%
2,292
1,367
1,566

Sep / 2020

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%)
36.98
700
169,789
123,400
2,153.51
1.7%
72.7%
2,282
1,858
1,716

Sep / 2021

49,102(342)
26,732(54.4%)
22,438(45.7%)
4,364(8.9%)－68(－0.1%)
285(0.6%)
121(0.2%)
2.12
700
164,408
121,927
2,127.81
0.1%
74.2%
2,252
751
1,831

Mar / 2021

Mar / 2022
(Forecast)

102,904(996)

102,600(800)

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
124,661
2,175.52
5.0%
74.6%
2,243
4,307
3,564

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

From the beginning of the first quarter for the Fiscal Year Ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar.31,2020) etc.
have been applied, and the second quarter results, second quarter forecast, and the full-year forecast are based on the "Accounting Standard for Revenue Recognition".

13

（Reference）

P&L summary : KYORIN pharmaceutical (Non-consolidated)-(1)<Breakdown>
Sep / 2020

(Year on Year)

Sep / 2021

(Units : ¥ million)■SalesActual% Sales

Actual% Sales Change（%）（ n/a ）

●New ethical drugs, etc. (Japan)
Change¥ 32,537mil(billion)

Net Sales (total)

41,116 100.0%

42,961 100.0%

n/a

n/a

New ethical drugs,
etc. (Japan)

31,813

77.4%

32,537

75.7%

n/a

n/a

New ethical drugs(Overseas)

433

1.1%

251

0.6%

n/a

n/a

8,869

21.6%

10,172

23.7%

n/a

n/a

Generic drugs¥ 42,961mil

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

21.3（2Q）

6.4
1.8
3.8
0.2
6.4
1.6
0.6
3.5
1.4

（ n/a ）

22.3（2Q）

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

6.3
2.6
4.3
0.8
7.1
0.7
0.7
3.6
1.6

（－0.1）（＋0.8）（＋0.5）（＋0.6）（＋0.7）（－0.9）（＋0.1）（＋0.1）（＋0.2）●New ethical drugs (Overseas)¥ 251mil（ n/a ）・ Sales of transfer of intellectual property and APIs in FY2020●Generic drugs¥ 10,172mil（ n/a ）・ Sales increase in 3 AG products (Kipres AG, etc.)

From the beginning of the first quarter for the Fiscal Year Ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar.31,2020) etc.
have been applied, and the second quarter results, second quarter forecast, and the full-year forecast are based on the "Accounting Standard for Revenue Recognition".

14

（Reference）

P&L summary : KYORIN pharmaceutical (Non-consolidated)-(2)

Sep / 2020<Breakdown>

Sep / 2021

(Year on Year)(Units : ¥ million)

Actual% Sales

Actual% Sales

ChangeChangeSales

41,116100.0%

42,961100.0％

n/a

n/a

Cost of Sales

19,77348.1%

23,277

54.2%

n/a

n/a

Gross Profit

21,34351.9%

19,683

45.8%

n/a

n/a

SG&A
(R&D expenses)

21,021
51.1％(4,687) (11.4%)

20,509(3,782)47.7%
n/a(8.8%) (－19.3%)

n/a(－905)－1,147（%）◆Cost of sales ratio : 54.2％（◆R&D Ratio : 8.8%

（

321

0.8%

－825

－1.9%

Non-Operating Income
Non-Operating Expenses

643
28

1.6%
0.1%

585
29

1.4%
0.1%

Ordinary Income

936

2.3%

－269

－0.6%

—

－1,205Extraordinary profits
Extraordinary Losses

1,073
4

2.6%
0.0%

0
9

0.0%
0.0%

－100.0%＋90.2%－1,073＋4

Income before
income taxes

2,005

4.9%

－278

－0.6%

—

－2,283

604

1.5%

－28

－0.1%

—

－632 ■Net Income

—

—

—

—

—

－249

－0.6%

—

－1,650

Corporate, inhabitantsand enterprise taxes

Tax adjustments—

Net Income

1,400

3.4%

－8.9%
＋2.3%

）

n/a

）

n/a

）

・ ¥ 4.7bln→¥ 3.8bln
Upfront payment for AKP-009 in FY2020

Operating Income—

n/a【Reasons of increase】
・ Impact of NHI drug price revisions
・ Sales of Generic drugs increased
・ Loss on retirement of inventories, etc. increased－57◆SG&A (exclude R&D) Expenses : 38.9%＋0（・ ¥ 16.7bln（2Q FY2020：¥ 16.3bln）
Increase in patents royalty : Upfront payment for Gefapixant citrate
Decrease in sales and labor costs■Operating Income － ¥ 825mil－ ¥ 249mil（－ ¥ 1,147mil）（－ ¥ 1,650mil）

From the beginning of the first quarter for the Fiscal Year Ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar.31,2020) etc.
have been applied, and the second quarter results, second quarter forecast, and the full-year forecast are based on the "Accounting Standard for Revenue Recognition".

15

（Reference）

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

Current Assets

Mar / 2021
Actual% totalActual% total119,598

76.4%

119,31476.8%

Mk securities
Inventory
Other

16,98336,182
3,399
29,60933,422

Fixed Assets

37,029Tangible assets
Intangible assets
Investments

7,213
3,080
26,734

Cash, deposits
Notes and accounts receivable<Breakdown>

Sep / 2021

(Year on Year)

Change－284■Current Asset :・ Cash, deposits
・ Notes and accounts receivable
・ Mk securities
・ Inventory
・ Other―

23,69130,4003,600
28,31033,311

―

―

23.6%

35,99923.2%－1,029

―

7,175
2,801
26,022――■Fixed Assets ：・ Tangible Assets
・ Intangible Assets
・ Investments

Total Assets

156,628100.0%

155,314100.0%－1,314Current Liabilities

23,78915.2%

25,911

16.7%＋2,122

Notes payable
Other

6,597
17,192―

9,877
16,034――・ Notes Payable
・ Other

Non-Current
Liabilities

12,417

7.9%

12,196

7.9%－220■Non-Current Liabilities :Total Liabilities

36,20723.1%

38,10824.5%＋1,901

Owner’s Equity

113,84872.7%

111,14771.6%－2,700

6,572

4.2%

6,057

3.9%

－514

Total Equity

120,42076.9%

117,205

75.5%－3,215

Total Liabilities and Equity

156,628100.0%

155,314100.0%－1,314

Valuation andtranslation adjustments■Current Liabilities :－ ¥ 284mil（ ＋ ¥ 6,708mil）（ － ¥ 5,782mil）（+ ¥ 200mil）（ － ¥ 1,299mil）（ － ¥ 111mil）－ ¥ 1,029mil（（（－ ¥ 37mil）－ ¥ 279mil）－ ¥ 712mil）＋ ¥ 2,122mil（ ¥ ＋3,279mil）（ ¥ －1,157mil）－ ¥ 220mil

16

（Reference）

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 (¥)
CapitalAssetsTotal Equity
BPS (¥)
ROE
Equity Ratio (%)
Employees
Capital Expenditure
Depreciation Expense

Sep / 2019

41,667(293)
20,638(49.5%)
21,386(51.3%)
4,717(11.3%)－357(－0.9%)
243(0.6%)
137(0.3%)
1.85
4,317
156,318
116,975
1,575.04
0.1%
74.8%
1,537
185
679

Sep / 2020

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%)
18.86
4,317
160,574
119,891
1,614.30
1.2%
74.7%
1,504
207
684

Sep / 2021

42,961(251)
23,277(54.2%)
20,509(47.7%)
3,782(8.8%)－825(－1.9%)－269(－0.6%)－249(－0.6%)－3.37
4,317
155,314117,205
1,578.14
－0.2%
75.5%
1,472
342
722

Mar / 2021

Mar / 2022
(Forecast)

89,674(793)

89,800(600)

44,922(50.1%)―

41,190(45.9%)―

8,719(9.7%)
3,561(4.0%)
4,546(5.1%)
4,814(5.4%)
64.82
4,317
156,628
120,420
1,621.43
4.0%
76.9%
1,471
732
1,391

7,800
(8.7%)
1,300(1.4%)
2,000(2.2%)
1,500(1.7%)
―
―
―
―
―
―
―
―
700
1,500

From the beginning of the first quarter for the Fiscal Year Ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar.31,2020) etc.
have been applied, and the second quarter results, second quarter forecast, and the full-year forecast are based on the "Accounting Standard for Revenue Recognition".

17