Third Quarter Consolidated Financial Results
for the Fiscal Year Ending March 31, 2024
1. Overview of Consolidated Financial Results
2. Highlights of Business Performance
3. Consolidated Financial Results
4. Financial Results and Forcast
5. Main Products Sales Update
6. Development pipeline

February 6, 2024
KYORIN Pharmaceutical Co., Ltd.

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P.7～9

■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 outlooksbased 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 Third Quarter Consolidated Financial Results for FY2023（JPY millions）

FY2020

FY2021

FY2022FY2023

3Q (Apr-Dec)

3Q (Apr-Dec)

3Q (Apr-Dec)

3Q (Apr-Dec)

Change（％）

Full term
FY2023(Forecast）

Change（％）

Net sales

74,95577,71780,70787,267＋8.1

116,200+2.6

Operating profit

4,114

2,926

4,702

4,465－5.0

6,000+17.1

Ordinary profit

4,656

3,515

5,336

5,053

－5.3

6,500+11.5

Profit attributable toowner of parent

4,504

2,483

4,377

3,914－10.6

4,900+3.7

Third Quarter Consolidated Financial Results for FY2023[Net sales] Sales of new drugs etc. (Japan) increased from year on year by the sales increased in Beova and Lasvic etc, while the impact of NHI drug pricerevision. Sales of generic drugs increased. As a result, net sales were 87,267 million yen (an increase of 6,560 million yen, year on year) .
[Profit] Gross profit was 38,314 million yen (an increase of 1,259 million yen, year on year). On the other hand, increased in SG&A expenses of 1,496 millionyen (R&D expenses decreased 1,446 million yen) lead to operating profit of 4,465 million yen (decreased 237 million yen, year on year). Profit
attributable to owner of parent decreased 463 million yen year on year to 3,914 million as a result posting of extraordinary income for gain on sale ofinvestment securities of 991 million yen and extraordinary loss of 871 million yen regarding the voluntary retirement program.

Consolidated Financial Results for FY2023 (forecast)
The forecast for full year announced on May 11, 2023 remain unchanged at this moment.
(There is no change to the dividend forecast announced on May 11, 2023 (Annual dividend of 52 yen per share).

2Highlights of Business Performance
Net sales increased（¥ in billions）

90.0(+6.6 bln)

⚫ Increase in sales of new drugs etc. (Japan)- Mainstay products grew
⚫ Increase in sales of generic drugs

80.0

Cost of sales ratio increased (+2.0 %pt)

70.0
Cost ofSales

60.0

43.7

50.0

Cost ofSales
Ratio

Net Sales

49.0

Net Sales

80.7

87.3

R&D

30.0

20.0

7.2
SG&A

（excluding R&D）

SG&A

32.4

Cost ofSales
Ratio

R&D

4.7
FY2022 3Q

SG&A cost increased (+1.4 bln)

5.7
SG&A（excluding R&D）

⚫ R&D expenses decreased (－1.5 bln)
SG&A

• Decline of expenses regarding of ActivX.

33.8⚫ SG&A (excluding R&D) increased (+2.9 bln)
• Increase in selling expenses, personnel expenses,
depreciation expenses and license fees etc.

Operating
ProfitOperating
Profit0.0

Gross profit increased (+1.2 bln )

28.1

25.2
10.0

<Factors of increase>⚫ Impact of NHI drug price revisions(Kyorin Pharmaceutical: 7% range)⚫ Increase cost of sales ratio of generic drugs

56.1%

54.1%
40.0

<Factors of decrease>⚫ Increase in sales of new drugs (Beova, Lasvic)• Ratio of new drugs increased

Cost ofSales

4.5

FY2023 3Q

4.5

Operating profit decreased (ー0.2 bln)3

Consolidated Financial Results（Year on Year）（JPY billions）

FY20223Q (AprDec)

FY20233Q (AprDec)

ChangeNet sales

80.7

87.3

＋6.6

New drugs, etc.
(Japan)

54.1

60.6

＋6.5

0.5

0.3

－0.2

New drugs(Overseas)
Generic drugs

26.1

26.4

＋0.3

■Net sales

87.3 bln(+6.6)●New drugs, etc. (Japan)

60.6 bln(+6.5)FY2022 (3Q)

・Beova・Lasvic
・Lyfnua
・Desalex
・Flutiform
・Pentasa
・Kipres・Mucodyne
・Nasonex
・Uritos●New drugs (Overseas)

9.2
1.8
0.1
4.8
9.1
9.9
4.6
2.8
1.1
0.6

FY2023 (3Q)

⇒⇒

13.4
3.7
0.7
5.2
9.9
9.5
4.8
3.2
0.8
0.4
0.3 bln

⇒
⇒⇒
⇒
⇒
⇒⇒

●Generic drugs

26.4 bln（ ＋4.2）（ ＋1.9）（ ＋0.6）（ ＋0.4）（ ＋0.8）（ －0.4）（ ＋0.2）（ ＋0.4）（ －0.3）（ －0.2）(－0.2)（+0.3）

Increase sales in AG products (Kipres AG)
Items launched in June 2023 contribute to sales■Operating profit

4.5 bln（－0.2）●Cost of sales ratio : 56.1％（3Q FY2022: 54.1％）[Factors of decrease] Increase of sales for new drugs (Beova, Desalex etc.)- Ratio of new drugs increased[Factors of increase] NHI drug price revisions, Increase cost of sales ratio of generic drugs

Operating profit

4.7

4.5－0.2●R&D : 5.7 bln（3Q FY2022: 7.2 bln）
Decline of expenses regarding of ActivX●SG&A (excluding R&D expenses) : 28.1 bln（3Q FY2022: 25.2 bln）

Ordinary profit

5.3

5.1－0.2

Increase in selling expenses, personnel expenses,depreciation expenses and license fees etc.

■Profit attributable to owner of parent
Profit attributableto owner of parent

4.4

3.9－0.5

3.9 bln (－0.5)

Extraordinary profit: gain on sales of investment securities of 991 mil.
Extraordinary loss: expenses regarding voluntary retirement program of 871 mil.

4

Financial Result and Forcast
3Q (Apr-Dec)

2Q (Apr-Sep)（JPY millions)

FY2022（Actual）

FY2023（Actual）

FY2022(Actual)

FY2023(Actual)

Full term

ChangeChange(%)

FY2022（Actual）

FY2023(Forecast)

Progress
to fullterm
forecast（％）

Net sales

49,09354,93780,707 87,267＋6,560＋8.1

113,270

116,200

75.1

New drugs, etc.
(Japan)32,65137,87554,055 60,587＋6,532＋12.1

74,77079,100

76.6

312

167

291－241

－45.3

308

400

72.8

16,12816,895

26,119 26,388

＋269

＋1.0

38,19036,60072.1

Operating profit

777

1,144

4,702

4,465－237－5.0

5,123

6,000

74.4

Ordinary profit

1,171

1,387

5,336

5,053－282－5.3

5,827

6,500

77.7

Profit attributableto owner ofparent

1,242

1,757

4,377

3,914－463

－10.6

4,723

4,900

79.9

New drugs(Overseas)
Generic drugs

5325

Main Product Sales Update
2Q (Apr-Sep)(JPY billions）

Beova (Kyorin)(β3 adrenergic receptor agonist overactive bladder therapeutics )Lasvic(New quinolone synthetic antibacterial agent)

Lyfnua(selective P2X3 receptor antagonist for the treatment of chronic cough)Desalex(Antiallergic Agent)

New drugs, etc. (Japan)

Flutiform(Combination drug for asthma treatment)

Pentasa(Ulcerative colitis and Crohn’s disease treatment)

Kipres(Leukotriene Receptor Antagonist)

Mucodyne(Mucoregulant)

Nasonex(Spray type allergic rhinitis remedy)

Uritos (Kyorin)(Therapeutic agent for overactive bladder)

Milton(Disinfectant)

Rubysta(Disinfectant)Generic drugs

Montelukast tablets “KM”
(Leukotriene Receptor Antagonist)

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

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

3Q (Apr-Dec)

FY2022

FY2023

FY2022

FY2023（Actual）（Actual）（Actual）（Actual）

Full term
Progress tofull term
forecast（％）

ChangeChange(%)

FY2022

FY2023（Actual）（Forecast)

＋4.2

＋44.9

12.9

18.9

70.5

5.5

8.3

9.2

13.4

1.0

2.5

1.8

3.7

＋1.9 ＋111.9

2.5

3.2

113.5

0.1

0.4

0.1

0.7

＋0.6 ＋389.9

0.2

1.3

49.4

3.0

3.1

4.8

5.2

＋0.4

＋8.8

8.5

8.9

58.4

5.7

6.2

9.1

9.9

＋0.8

＋8.7

12.0

11.4

86.0

6.5

6.1

9.9

9.5

－0.4

－4.5

12.8

11.880.0

2.7

2.6

4.6

4.8

＋0.2

＋5.5

6.6

5.3

91.1

1.5

2.0

2.8

3.2

＋0.4

＋17.4

3.5

3.0

105.9

0.6

0.4

1.1

0.8

－0.3

－28.9

2.5

1.2

62.0

0.4

0.3

0.6

0.4

－0.2

－26.0

0.7

0.2

142.5

1.0

1.0

1.6

1.5

－0.1

－6.4

2.0

1.9

75.4

1.1

0.8

1.6

1.2

－0.4

－25.8

2.1

2.1

57.2

5.4

5.8

8.7

9.2

＋0.5

＋5.9

13.3

11.0

83.2

1.1

0.9

1.9

1.9

0

－3.0

4.7

3.4

55.0

0.4

0.3

0.5

0.50－14.3

0.7

0.4

96.3

6

Development pipeline
Main R&D Activities -1 (as of February 6, 2024)
Ph 3 ～ LaunchStageCode

Proposed Indication

OriginPh 3Ph 3
KRP-R120(Sep 2022) (aTyr pharma,USA)Interstitial lung disease:
ILD(pulmonary sarcoidosis)

aTyrpharma

JapanFeatures

NoteOverseas
It is a fusion protein drug having the action tosuppress, 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

POC Project（Ph1 ～ Ph2）Stage
CodeJapan

OriginFeatures

Note
AdditionalIndicationfor Beova
in pediatricpatients

Overseas

Ph 1(Aug 2022)―

Proposed Indication

Ph 1(Apr 2021,England)

KRP-114VP

Overactive bladderMerck

It selectively acts on β3 receptors in thebladder and increases bladder capacity byenhancing the bladder-relaxing effect ofnoradrenaline during the urinary storage
phase, resulting in the improvement ofincontinence symptoms of urinary urgency,
frequent urination and urge urinary
incontinence with OAB.

KRP-A218

Rhinovirus infection atrisk of potentially severe

In-house

It is antiviral drug that suppresses viral
growth by targeting host molecules7

Development pipeline
Main R&D Activities -2 (as of February 6, 2024)
Licensing development (License-in)StageJapanOver
seas―Ph 2(Dec 2019)
ASKA
Pharmaceutical

Code

AKP-009

ProposedIndication

OriginFeatures

NoteBenign
ASKA
Novel androgen receptor
Prostatic
Pharmaceuti modulator mode of action with
Hyperplasia cal
the potential to exhibit prostatic
shrinkage and to improve urinary
function as a novel therapeutic
agent for Benign Prostatic
Hyperplasia-ASKA Pharmaceutical granted
KYORIN Pharmaceutical the joint
development andcommercialization rights for AKP009 in Japan (Sep 2020)-Additional Ph1 study at a higher
dose has been completed (ASKA)

Ph1 trial is being conducted again (ASKA Pharmaceutical)

Licensing development (License-out)
Stage
Ph 3

Compound /Code
KRP-203

LicenseePriothera

Therapyarea / Action―OriginIn-house

Features
Sphingosine-1-Phosphate
Receptor Agonist

Note
Transfer of intellectual
property(patents and data required
for the development and sale) andAPIs (Sep 2020)

8Other (as of February 6, 2024)

CodeKRP-DT123Proposed
Indication
Tinnitus

OriginSUSMED

Note
Collaboration research and sales agreement for development of Digital
Therapeutics (DTx) in otolaryngology Field (Nov 2022)
Specified clinical trial is in progress (Sep 2023)

9