Consolidated Financial Results
for the Fiscal Year Ending March 31, 2020
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. Segment information
P.8
8. Consolidated Financial Results and full year Forecast P.9
9. P&L Summary
P.10～11
10. BS Summary
P.12
11. Financial summary
P.13
12. KYORIN Pharmaceutical result
P.14～17

May 12, 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.

Overview of Consolidated Financial Results for Fiscal 2019(¥ million)

FY2016FY2017FY2018FY2019ChangeFY2020Change(forecast)

115,373

110,640

113,620

109,983－3.2%

115,500＋5.0%

Operating income

10,413

8,822

8,972

7,503

－16.4%

9,700＋29.3%

Ordinary income

10,874

9,345

9,438

8,175

－13.4%

10,200＋24.8%

7,305

6,574

6,869

6,149

－10.5%

7,600＋23.6%Net income per share(yen)

99.45円

89.28円

104.68円

107.35円＋2.5%

132.67円＋23.6%

Total assets

192,668

196,736

173,034

171,160

－1.1%

－

－

Total equity

157,837

163,297

123,395

122,710

－0.6%

－

－

Net Sales

Net income

Consolidated Business Results for Fiscal 2019
[Net Sales] In new ethical drugs (Japan), results remained lower than a year ago due to decrease in sales from delay of the resumption of supply of Desalex, despite the growth of themainstay product Flutiform and Beova. Meanwhile, sales increased in generic drugs and new ethical drugs (Overseas), but in whole Ethical drugs Business decreased. As a result net sales
decreased 3,637 million yen (down 3.2%) from year on year, to 109,983 million yen.

[Profit] Gross profit declined 377 million yen year on year due to decrease in sales of new ethical drugs despite down of cost of sales ration. Selling, general and administrative expenses
increased 1,092 million yen year on year (of which research and development expenses increased 196 million yen). Operating income was 7,503 million , down 1,469 million yen (down
16.4%) from year on year and Profit attributable to owners of parent was 6,149 million yen (down 10.5% year on year).
Both net sales and profit reached the results forecasts announced on November 7, 2019.

Consolidated Business Results Forecast for Fiscal 2020
[Net sales and income] Although net sales will be affected by NHI drug price revisions, a boost to sales from Lasvic Tablets, a new product launched in FY2019, and growth of Beova
following the lifting of limits on the prescription period are forecast and sales of new ethical drugs (Japan) are projected to be significantly higher than in the previous fiscal year. Meanwhile, in
generic drugs, net sales of ethical drugs are expected to increase sharply, with growth in sales anticipated due to the launch of a new authorized generic. Profit is projected to rise, mainly due
to a sharp rise in net sales.
In terms of consolidated results for the fiscal year ending March 31, 2021, net sales are forecast to be 115,500 million yen (up 5.0% from the previous year), operating income to be 9,700
million yen (up 29.3% from the previous year), and profit attributable to owners of parent to be 7,600 million yen (up 23.6% from the previous year).
The impact of the COVID-19 coronavirus outbreak on business performance is expected to be insignificant, however, given the huge uncertainty over the situation, the Company will monitor
future developments and if revision of the results forecasts becomes necessary, the Company will make prompt disclosure.

1

Highlights of Business Performance(Units: ¥ billion)

120

Net Sales decreased ¥3.6bln year on year
Cost of
Sales Ratio

100

49.5%

48.1%

Net
Sales

80

60

40

Gross Profit decreased ¥0.4bln year on year
Cost ofNet sales sales

Net salessales

Net
Sales

Net
Sales

113.6

Cost of

56.2

110.0

R&D

10.8
SG&A
(excluding R&D)

37.6
20

0

Cost of sales ratio decreased 1.4%
•Improvement of product mix•Impact of NHI price revision due toconsumption tax increase (approximately 3%)

Cost of
Sales Ratio

SG&A

48.4

FY2018•R&D expenses increased ¥0.2bln•SG&A(excluding R&D) increased ¥0.9bln

R&D

11.0
SG&A
(excluding R&D)

38.5

Operating
Income9.0

SG&A expenses increased ¥1.1bln year on year

53.0

Operating Income decreased ¥1.5bln year on year
SG&A

49.5
Operating
Income

9.0

7.5

7.5

FY20192

Consolidated Financial Results(Year on Year) （forecast）(Units : ¥ billion)

FY2018FY2019ChangeNet Sales (total)

113.6

110.0

－3.6

Ethical drugs
Business

107.9

103.6

－4.3

◆Sales of new
ethical drugs

78.5

72.6

－5.9

○Japan

77.7

71.2

－6.5

0.8

1.5

＋0.7

○Overseas■Net Sales

110.0bln（－3.6） （＋0.6）◆Ethical drug business103.6bln（－4.3） （＋0.2）●New ethical drugs

71.2bln（－6.5） （＋0.2）

FY18・Flutiform
・Desalex
・Beova・Lasvic
・Uritos
・Pentasa
・Nasonex
・Kipres・Mucodyne●New ethical drugsin Overseas v

13.1
3.7
0.7
―
6.6
13.5
12.8
13.9
6.8

Healthcare
Business

29.3
5.8

31.0
6.4

＋1.7
＋0.6

●Generic drugs

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

1.5bln・Increase in revenue about Gatifloxacin◆Generic drugs

FY19

14.6
2.6
4.3
1.1
5.8
13.3
6.0
11.8
5.8

（ ＋1.5） （ ＋0.5）（ －1.1） （ －2.4）（ ＋3.6） （ ＋1.5）（ ＋1.1） （ ＋0.2）（ －0.8） （ －0.1）（ －0.2） （ ＋0.6）（ －6.8） （ －0.2）（ －2.1） （ ＋0.7）（ －1.0） （ －0.3）（＋0.7） （＋0.1）
・Lump-sum revenue of a license agreement

31.0bln（＋1.7） （0）

・ Mometasone AG contributed to the increase in sales◆Healthcare Business6.4bln（＋0.6） （＋0.5）■Operating Income

7.5bln（－1.5） （＋1.0）◆ Operating Income margin decreased 1.1 percentage points to 6.8%

Operating
IncomeOrdinary Income

9.0
9.4

7.5
8.2

－1.5
－1.2

●Cost of Sales Ratio : decreased 1.4 percentage points (49.5%⇒48.1%)
・ Improvement of product mix

・ Impact of NHI price revision due to consumption tax increase(approximately 3%)●R&D Ratio : increased 0.5 percentage points (9.5%⇒10.0%)
・R & D expenses increased ¥0.2billion (¥10.8bln ⇒¥11.0bln)
・ Increase in lump-sum contractual payments paid in conjunction with the introduction●SG&A Ratio(excluding R&D expenses) : increased 1.9 percentage points 33.1%⇒35.0%

Net Income

6.9

6.1

－0.8

・SG&A(excluding R&D) increased ¥0.9billion (¥37.6bln⇒¥38.5bln)

Net Income

6.1blnIncrease in patent royalties, etc.

（－0.8） （＋0.7）
3

Main Product Sales Update(Units : ¥ billion)

FY2015FY2016FY2017FY2019FY2018ActualFlutiform(Combination drug for asthma treatment)

Desalex(Antiallergic Agent)

―

10.1
1.0

11.9
4.9

7.5
16.1

7.5
15.5

7.2
15.3

―

―

―

28.6

17.7

8.3

13.1 14.6 ＋12.2 15.0
3.7 2.6 －30.1
8.8
0.7 4.3 ＋481.0
7.0
1.1
4.1
―
2.7
6.6 5.8 －11.7
13.5 13.3－1.5 11.7
12.8 6.0 －52.8
2.6
6.2 5.3 －15.5
4.2

15.4
13.0

14.9
9.9

10.5
8.7

7.6
6.8

6.5
5.8

－14.6

―

8.2

11.7

11.9 11.5
2.8

－3.3

7.2

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

Lasvic tablets(Oral new quinolone synthetic antibacterial agent)

Sales ofnew
ethicaldrugs(Japan)Uritos（Kyorin）(Therapeutic agent for overactive bladder)

Pentasa(Ulcerative colitis and Crohn’s disease treatment)

Nasonex(Spray type allergic rhinitis remedy)

Kipres for adult(Leukotriene Receptor Antagonist)

Kipres for children(Leukotriene Receptor Antagonist)

Mycodyne(Mucoregulant)

Montelukast tablets “KM”
Generic
drugs(Leukotriene Receptor Antagonist)

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

Over-theMilton
counter(Disinfectant)drugs

Change(％)

FY2020(Forecast)

2.1

2.2

2.2

2.2

2.4

－14.5

5.3
4.9

―

10.7
3.5

＋9.9

2.2
4

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

FY2019FY2015FY2016FY2017

FY2020

R&D
expenses

13,01913,56914,243

Capitalexpenditure

7,218

3,051

Depreciation
expense

3,730

3,619

ActualChange(Forecast)

10,79010,987

＋1.8%

9,600

2,885

2,306

3,590

＋55.6%

5,100

3,644

2,940

3,221

＋9.5%

3,800

Capital expenditure (Actual / Forecast)
FY2018FY2020(Units : billion)

FY2019(Actual)FY2020(Forecast)

Plant facilities

1.5

2.7

3.8

Equipment for control,
sales activities

0.3

0.4

0.4

Equipment for research

0.5

0.5

0.9
5

Development pipeline
Main R&D Activities -1 (as of May 12 2020)※Changes from the previous announcement (Feb 5 2020)

Ph III ~ Application submitted
Stage

Compound/
Code

Therapy area
/ActionApplication(10 / 2019)

KRPAM1977Y(Injection)

New quinolone
synthetic
antibacterial
agent

In-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, 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)”

Application(7 / 2019)

KRP-108P

Anti-asthmatic(U.K.)
Vectura

Expand the indication of Flutiform to pediatric patients

Japan

Overseas

OriginFeatures

Comments

・MK-7264, a drug for chronic coughing: Merck Phase III (Oversea).
Concluded a memorandum of understanding for sales collaboration (5 / 2019).

Oral new quinolone synthetic antibacterial agent “Lasvic tablets 75mg”: released in January 2020.

6

Development pipeline
Main R&D Activities -2 (as of February 5 2020)
POC Project (Ph I ~ Ph II)
Stage
Japan

Overseas

PhⅡ(6/2018)

Compound/
Code

Therapy area
/Action

Ad-SGE-REIC

malignantpleuralmesothelioma

OriginFeatures

Comments

Okayama
University

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

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

It was decided to discontinue development of "KRP-N118", for it was estimated difficult for realization of pre-configured product profiles.

Status of Introduced Program[ATYR1923] : Code of aTyr Pharma, Inc
Code: KRP-R120
・ Entered into collaboration and license agreement with aTyr Pharma, Inc (1/2020)
・ Ph 1b/2a Clinical Trial is in progress in the United States by aTyr Pharma, Inc
・ 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 totreat inflammatory diseases such as pulmonary sarcoidosis.

Status of Licensed Compound / Program
Stage/
Overseas

Compound/Code

Licensee /Collaborative
research

Therapyarea/Action

PhⅠ

FPR-2 agonist
program

BMS

Nondisclosure

PhⅠ

KRP-203

Implementing
licensingactivities

GvHD

OriginIn-house

Features

Comments

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

License agreement with BMS (12/2015)

Sphingosine-1-Phosphate Receptor Agonist

Because Novartis (licensee) decided to
discontinue development of KRP-203 forstrategic reasons, Kyorin receive the returnof development rights.

7

Reference

Segment information

Sales, Profit or Loss of each report segment(unit : ¥billion)

Net Sales (total)
Ethical drugs business◆Sales of new ethical drugs○Japan○Overseas◆Generic drugs

Healthcare businessAmount of adjustment

Sales

Change Y/YProfitChange Y/Y

110.0

－3.6

7.5

－1.5

103.6

－4.3

6.6

－1.7

72.6

－5.9

71.2
1.5

－6.5
＋0.7

31.0

＋1.7

6.4

＋0.6

0.7

＋0.5

ー

ー

0.2

－0.3
8

Reference

Consolidated Financial Results and full year Forecast(Units: ¥ million)

FY2019Year on year

FY2020(forecast)

ChangeChange（%）

Sales

109,983

115,500+5,517+5.0■Ethical Drugs business

103,599

110,500+6,901+6.7

72,64275,600＋2,958＋4.1○Japan71,15274,600+3,448＋4.8○Overseas

1,490

1,000

－490

－32.9

◆Sales of Generic drugs

30,95734,900＋3,943＋12.7■Healthcare Business

6,383

5,000

－1,383－21.7

Operating Income

7,503

9,700

＋2,197＋29.3

Ordinary Income

8,175

10,200＋2,025＋24.8

Net Income

6,149

7,600

＋1,451＋23.6◆Sales of new Ethical Drugs※ The impact of the COVID-19 coronavirus outbreak on business performance is expected to be insignificant, however, given the huge uncertainty over thesituation, the Company will monitor future developments and if revision of the results forecasts becomes necessary, the Company will make prompt disclosure.

9Reference

P&L Summary : Consolidated Results － (1)FY2018＜ Breakdown ＞

FY2019Year on Year

(unit : ¥million)

Sales

Actual% Sales

113,620100.0%

Actual% Sales

109,983

100.0%% Change－3.2%

Change107,859

94.9%

103,599

94.2%

－3.9%

－4,259◆Sales of new
Ethical Drugs

78,52569.1%

72,642

66.0%

－7.5%

－5,882

77,69468.4%

71,152

64.7%

－8.4%

－6,542

830

0.7%

1,490

1.4%

＋79.5%＋660○Overseas¥109,983mil(－¥3,637mil)● Ethical drug sales in Japan

－3,637■Ethical Drugs
business○Japan■ Sales¥71,152mil(¥ : billion)
・Flutiform
・Desalex
・Beova・Lasvic
・Uritos
・Pentasa
・Nasonex
・Kipres・Mucodyne

FY18

13.1
3.7
0.7
―
6.6
13.5
12.8
13.9
6.8

(－¥6,542mil)
FY19

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

14.6
2.6
4.3
1.1
5.8
13.3
6.0
11.8
5.8

（ ＋1.5）（ －1.1）（ ＋3.6）（ ＋1.1）（ －0.8）（ －0.2）（ －6.8）（ －2.1）（ －1.0）● Ethical drug sales overseas◆Generic Drugs
Consumer
Healthcare
Business

29,334
5,761

25.8%

5.1%

30,957
6,383

28.1%

5.8%

＋5.5%

＋10.8%＋1,622＋622¥1,490mil( ＋ ¥660mil)

・ Gatifloxacin¥0.4bln → 0.6bln(● Generic Drugs¥30,957mil( ＋¥1,622mil)＋¥ 0.2bln)

・ Mometasone AG contributed to the increase in sales<Subsidiaries and Equity-method Affiliates>
Consolidated subsidiaries (6) ：・KYORIN Pharmaceutical Co., Ltd.
・ Kyorin Europe GmbH・ActivX Biosciences, Inc.
・KYORIN Rimedio Co., Ltd.
・KYORIN Medical Supply Co., Ltd.
・KYORIN Pharmaceutical Group Facilities Co.,Ltd.
Equity-Method Affiliates： ・Nippon Rika Co., Ltd.

●Consumer Healthcare Business¥6,383mil(＋¥622mil)・Milton¥2.2bln → 2.4bln(＋¥0.2bln)

・Rubysta¥1.3bln → 1.5bln(＋¥0.2bln)10Reference

P&L Summary : Consolidated Results － (2)FY2018＜ Breakdown ＞

FY2019(unit : ¥million)

Actual% Sales

Actual% Sales

Sales

113,620100.0%

109,983

100.0%－3.2%－3,637

Cost of Sales

56,21049.5%

52,950

48.1%

－5.8%

－3,259Gross Profit

57,40950.5%

57,032

51.9%

－0.7%

－377

SG&A
(Incl. R&D expenses)

48,43642.6%

49,528

45.0％

＋2.3%

＋1,092（10,790)（9.5%）(10,987)（10.0%）（＋1.8%)（＋196)

8,972

7.9%

7,503

6.8%

－16.4%－1,469Operating
Income% Change

Change

0.7%
0.3%

801
128

0.7%
0.1%

＋0.3%

＋2

－61.4%－204

Ordinary Income

9,438

8.3%

8,175

7.4%

－13.4%－1,262Extraordinary Profits
Extraordinary Losses

66
145

0.1%
0.1%

123
43

0.1%
0.0%

＋86.2%－69.9%＋57－101

Income before
income taxes

9,359

8.2%

8,255

7.5%

－11.8%－1,103

Corporate, inhabitantsand enterprise taxes

2,004

1.8%

2,085

1.9%

＋4.0%

＋81

485

0.4%

20

0.0%

―

－464

6,869

6.0%

6,149

5.6%

－10.5%－719

Non-Operating Expenses

Tax adjustments

Net Income

down 1.4 percentage points Y/Y (49.5％→48.1％)
・ Improvement of product mix◆ R&D Ratio :up 0.5 percentage points Y/Y (9.5%→10.0％)＊¥10.8bln→¥11.0bln (＋￥0.2bin)
Increase in lump-sum contractual payments paid in
conjunction with the introduction◆SG&A (exclude R&D) Expenses :798
332

Non-Operating Income◆Cost of Sales Ratio :up 1.9 percentage Points Y/Y(33.1％→35.0％)＊¥37.6bln→¥38.5bln (＋¥0.9bln）
・ Increase in patent royalties, etc.

■Operating Income ¥7,503mil (－ ¥1,469mil)＊Operating Income margin decreased 1.1percentage
points to 6.8%

■Net Income ¥6,149mil (－ ¥719mil)■Dividend per share ¥75.00＊Consolidated Dividend ratio

70.9%

12

Reference

BS Summary : Consolidated Results（ Units: ¥ million ）FY2018FY2019＜ Breakdown ＞

Actual%totalActual% totalchange114,904

66.4%

117,058

68.4%＋2,154

Mk securities
Inventory
Other

32,00752,635501
25,4204,339―

31,92547,449993
33,283
3,406―

Fixed Assets

58,13033.6%

54,102

31.6%

Tangible assets
Intangible assets
Investments

21,792
3,401
32,936―

22,721
3,332
28,047―

Total Assets

173,034

100.0%

171,160

100.0%－1,873Current Liabilities

41,48024.0%

31,32818.3%－10,151

Notes payable
Other

11,44130,038―9,776
21,551――

Non-Current Liabilities

8,159

4.7%

17,121

10.0%＋8,962

Total Liabilities

49,63928.7%

48,44928.3%－1,189Owner’s Equity

116,74467.5%

118,534

69.3%＋1,789

6,651

3.8%

4,176

2.4%

－2,474Current Assets
Cash, deposits
Notes and accounts receivable

Other Comprehensive Income

―

―

―

6,922
36
－2,782――

Total Equity

123,395

71.3%

122,710

71.7%

－684

Total Liabilities and Equity

173,034

100.0%

171,160

100.0%－1,873Foreign currency translation adjustments
Remeasurements of defined benefit plans＋¥ 2,154mil

・ Cash, deposits（－¥ 82mil）
・ Notes and accounts receivable （ －¥ 5,186mil）
・ Mk securities（ ＋¥ 491mil）・ Inventory（ ＋¥ 7,863mil）・ Other（ －¥ 932mil）－4,0288,925
56－2,331

Unrealized holding gain (loss) on securities■Current Asset ：Year on Year

■ Fixed Assets ：－¥ 4,028mil

・ Tangible Assets
・ Intangible Assets
・ Investments（ ＋¥ 929mil）（－ ¥ 68mil）（ －¥ 4,888mil）■ Current Liabilities ：－ ¥ 10,151mil

・ Notes Payable
・ Other（ －¥ 1,664mil）（ －¥ 8,486mil）■ Non-Current Liabilities ：＋ ¥ 8,962mil

12

Reference

Financial Summary (Consolidated)(units : ¥million)

FY2015FY2016FY2017※FY2018

FY2019FY2020(forecast)

Sales(Exports)

119,483(5,586)

115,373(764)

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

109,983(1,490)115,500(1,000)

Cost of Sales（cost of sales ratio ）%

47,360(39.6%)

50,847(44.1%)

49,064(44.3%)

56,210(49.5%)

52,950(48.1%)―

SG&A
Ratio to Sales (%)

52,486(43.9%)

54,113(46.9%)

52,753(47.7%)

48,436(42.6%)

49,528(45.0%)―

R&D Expenses
Ratio to Sales (%)

13,019(10.9%)

13,569(11.8%)

14,243(12.9%)

10,790(9.5%)

10,987(10.0%)

9,600(8.3%)

Operating Income
Ratio to Sales (%)

19,636(16.4%)

10,413(9.0%)

8,822(8.0%)

8,972(7.9%)

7,503(6.8%)

9,700(8.4%)

Ordinary Income
Ratio to Sales (%)

19,995(16.7%)

10,874(9.4%)

9,345(8.4%)

9,438(8.3%)

8,175(7.4%)

10,200(8.8%)Net Income
Ratio to Sales (%)

13,639(11.4%)

7,305(6.3%)

6,574(5.9%)

6,869(6.0%)

6,149(5.6%)

7,600(6.6%)EPS (¥)

184.28円

99.45円

89.28円

104.68円

107.35円

132.67円

Capital

700

700

700

700

700

―

Assets

197,825

192,668

196,736

173,034

171,160―

shareholder's equity

149,808

152,585

155,489

116,744

118,534

Total Equity

157,049

157,837

163,297

123,395

122,710―

BPS (¥)

2,131.67円

2,146.83円

2,214.13円

2,154.05円

2,142.07円―

ROE (%)

8.9%

4.6%

4.1%

4.8%

5.0%

―

Equity Ratio (%)

79.4%

81.9%

83.0%

71.3%

71.7%

―

Employees

2,420

2,382

2,348

2,297

2,271

―

Capital Expenditure

7,218

3,051

2,885

2,306

3,590

5,100

Depreciation Expense

3,730

3,619

3,644

2,940

3,221

3,800

※ The figures for the preceding fiscal year have been revised retrospectively following the partial revision to the Accounting Standards for Tax Effect Accounting. 13

Reference

P&L Summary : KYORIN Pharmaceutical(Non-Consolidated) －(1)＜ Breakdown ＞

FY2018FY2019■ SalesYear on Year( －¥3,399mil)¥96,336mil● Ethical drug sales in Japan(unit : ¥million)

ActualActual% Sales% Change

ChangeSales

99,736 100.0%

96,336100.0%－3.4%－3,399■Ethical Drugs
business

94,73195.0%

90,827

94.3%

－4.1%

－3,903◆Sales of new
Ethical Drugs

76,172

76.4%

70,377

73.1%

－7.6%

－5,795○Japan○Overseas◆Generic Drugs■Healthcare
Business( －¥6,442mil)¥69,116mil% Sales

75,55875.8%

69,116

71.7%

－8.5%

－6,442

613

0.6%

1,260

1.3%

＋105.4%＋647

18,55818.6%

20,45021.2%＋10.2%＋1,891

5,004

5.0%

5,509

5.7%

＋10.1%＋504(¥ : billion)
・Flutiform
・Desalex
・Beova・Lasvic
・Uritos
・Pentasa
・Nasonex
・Kipres・Mucodyne

FY18

13.1
3.7
0.7
―
6.6
13.5
12.8
13.9
6.8

FY19

⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒
⇒

14.6
2.6
4.3
1.1
5.8
13.3
6.0
11.8
5.8

（ ＋1.5）（ －1.1）（ ＋3.6）（ ＋1.1）（ －0.8）（ －0.2）（ －6.8）（ －2.1）（ －1.0）● Ethical drug sales overseas

・ Gatifloxacin¥1,260mil( ＋¥647mil)¥0.4bln → 0.6bln( ＋¥0.2bln)● Generic Drugs ¥20,450mil(＋¥1,891mil)・ Mometasone AG contributed to the increase in sales●Consumer Healthcare Business¥5,509mil( ＋¥504mil)

・Milton¥2.2bln → ¥2.4bln( ＋¥0.2bln)

・Rubysta¥1.3bln → ¥1.5bln( ＋¥0.2bln)

14

Reference

P&L Summary : KYORIN Pharmaceutical(Non-Consolidated) －(2)FY2018(unit : ¥million)

Actual% Sales

Actual% Sales

Sales

99,736100.0%

96,336

Cost of Sales

50,44350.6%

Gross Profit

49,292

SG&A(R&D Expenses)

43,905

Operating Income
Non-Operating Income
Non-operating Expenses

Ordinary Income
Extraordinary Profits
Extraordinary Losses
Income before
income taxes
Corporate, inhabitantsand enterprise taxes

Tax adjustments

Net Income（9,569）＜ Breakdown ＞

FY2019% Change

Change100.0%－3.4%－3,39947,339

49.1%

－6.2%

－3,103

49.4%

48,996

50.9%

－0.6%

－295

44.0%

44,675

46.4%

＋1.8%

＋769

（9.6%） （10,038）（10.4%）（＋4.9%）（＋469）◆Cost of Sales Ratio :down 1.5 percentage points Y/Y (50.6％→49.1％)
・ Improvement of product mix◆R&D Ratio :up 0.8percentage points Y/Y(9.6％→10.4％)＊¥9.6bln→¥10.0bln(＋¥0.4bin)
Increase in lump-sum contractual payments paid in
conjunction with the introduction

5,387

5.4%

4,321

4.5%

－19.8%－1,065

784
50

0.8%
0.1%

1,093
74

1.1%
0.1%

＋39.4%＋48.4%

＋308
＋24

6,121

6.1%

5,340

5.5%

－12.8%

－780

60
120

0.1%
0.1%

―
61

―
0.1%

―
－48.8%

－60
－59

6,061

6.1%

5,278

5.5%

－12.9%

－782

1,193

1.2%

1,273

1.3%

＋6.7%

＋80 ■Net Income

478

0.5%

7

0.0%

―

－470

4,389

4.4%

3,996

4.1%

－8.9%

－392

◆SG&A (exclude R&D) expenses :up 1.6 percentage points Y/Y (34.4％→36.0％)＊¥34.3bln→¥34.6bln(＋¥0.3bin)
Increase in patent royalties, etc.
■Operating Income ¥4,321mil (－¥1,065mil)¥3,996mil ( －¥392mil)

15

Reference

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

FY2018＜ Breakdown ＞

FY2019Actual% totalCurrent Assets

118,02872.9%

121,234

Cash, deposits
Accounts receivable
Mk securities
Inventory
Other

7,581
47,814501
19,23742,893―18,32342,831
993
26,92732,157

Fixed Assets

43,957

27.1%

Tangible assets
Intangible assets
Investments

7,685
3,087
33,184―

Total Assets
Current Liabilities

Actual% total(Year on Year)change＋3,205■Current Assets ：＋¥3,205mil――・ Cash, deposits
・ Accounts receivable
・Mk securities
・ Inventory
・ Other(＋¥10,742mil)( －¥4,873mil)( ＋¥491mil)( ＋¥7,690mil)(－¥10,735mil)

39,33624.5%－4,621

7,328
2,741
29,265■Fixed Assets ：－¥4,621mil――

161,986 100.0%

160,570

100.0%－1,415・Tangible Assets
・Intangible Assets
・Investments( －¥357mil)( －¥345mil)( －¥3,918mil)

36,562

22.6%

27,73017.3%－8,831■ Current Liabilities ：－¥8,831mil

10,29926,262―

10,294
17,436――・ Accounts payable
・ Other(－¥5mil)( －¥8,826mil)

Non-Current Liabilities

4,103

2.5%

13,433

8.4%＋9,330Total Liabilities

40,66525.1%

41,164

25.6%

＋499

Owner’s Equity

112,464

69.4%

112,525

70.1%

＋60

8,856

5.5%

6,880

4.3%

－1,975

Total Equity

121,320

74.9%

119,405

74.4%－1,914

Total Liabilities and Equity

161,986 100.0%

160,570

100.0%－1,415

Notes Payable Accounts payable

Other

Valuation andtranslation adjustments

75.5%■ Non-Current Liabilities ：＋¥9,330mil

16

Reference

Financial Summary : KYORIN Pharmaceutical(Non-Consolidated)(units : ¥million)

FY2015FY2016FY2017※FY2018

FY2019FY2020(forecast)

Sales(Exports)

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

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

96,336(1,260)100,700(700)

Cost of Sales（cost of sales ratio ）%40,798(38.3%)

43,503(43.5%)

42,885(44.0%)

50,443(50.6%)

47,339(49.1%)―

SG&A
Ratio to Sales (%)

48,129(45.2%)

49,714(49.7%)

48,645(49.9%)

43,905(44.0%)

44,675(46.4%)―

R&D Expenses
Ratio to Sales (%)

12,421(11.7%)

12,785(12.8%)

13,158(13.5%)

9,569(9.6%)

10,038(10.4%)

8,400(8.3%)

Operating Income
Ratio to Sales (%)

17,461(16.4%)

6,803(6.8%)

5,928(6.1%)

5,387(5.4%)

4,321(4.5%)

7,300(7.2%)

Ordinary Income
Ratio to Sales (%)

17,985(16.9%)

7,396(7.4%)

6,608(6.8%)

6,121(6.1%)

5,340(5.5%)

8,200(8.1%)Net Income
Ratio to Sales (%)

12,113(11.4%)

4,454(4.5%)

4,637(4.8%)

4,389(4.4%)

3,996(4.1%)

6,200(6.2%)EPS (¥)

163.11円

59.98円62.45円59.10円53.82円―Capital

4,317

4,317

4,317

4,317

4,317

―

Assets155,637

149,382

151,622

161,986

160,570―

shareholder's equity

117,300

117,744

118,595

112,464

112,525

Total Equity

127,610

125,310

128,614

121,320

119,405―

BPS (¥)

1,718.23円

1,687.28円

1,731.76円

1,633.55円

1,607.77円―

ROE (%)

9.9%

3.5%

3.7%

3.5%

3.3%

―

Equity Ratio (%)

82.0%

83.9%

84.8%

74.9%

74.4%

―

Employees

1,731

1,687

1,673

1,567

1,502

―

Capital Expenditure

5,059

905

815

599

441

700

Depreciation Expense

2,241

2,143

1,942

1,183

1,337

1,500

※ The figures for the preceding fiscal year have been revised retrospectively following the partial revision to the Accounting Standards for Tax Effect Accounting. 17