Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2019
[Japanese GAAP] (Consolidated)
November 9, 2018
BrightPath Biotherapeutics Co., Ltd.
Listed Market Mothers, TSE
TSE Code4594
URL
https://www.brightpathbio.com/english/index.html
Representative (Title)
President & CEO(Name) Kenichi Nagai
Contact(Title)
Director(Name) Katsuhiro Kobayashi (TEL) +81-3-5840-7697
Scheduled date of submission of quarterly report: November 9, 2017
Scheduled date of dividend payment commencement:―: None
Supplementary materials for quarterly financial statements: None
Briefing of quarterly financial results(Millions of yen, rounded down to the nearest million)

1. Consolidated financial results for the second quarter of the fiscal year ending March 31, 2019
(April 1, 2018 – September 30, 2018)(1) Consolidated results of operation(Percentages represent changes from the same quarter of previous year)
Net sales

Operating income

Million yen% Million yen% Million yen

Six months ended September 30, 2018
142-22.0-826
Six months ended September 30, 2017
182
―-685
(Note) Comprehensive income
Six months ended September 30, 2018
Six months ended September 30, 2017
Net income per sharefor the quarter
Six months ended September 30, 2018
Six months ended September 30, 2017

Ordinary income

Profitattributable toowners of parent% Million yen%―-822
― -1,017
―-685
―
-687
-1,017Million yen ( ― %)-688 Million yen ( ― %)Fully diluted net
income per share forthe quarter

――

Yen

Yen

-24.31-18.45――(Notes)
1. Figures for the second quarter of the fiscal year ended March 31, 2017 are not stated, because the company began
preparing quarterly consolidated financial statements from the third quarter of the fiscal year ending March 31, 2017.
2. Fully diluted net income per share for the quarter is not stated as net loss was recorded for this period although there
are residual shares.

(2) Consolidated financial positions
Total assets

Net assets

Million yen

As of September 30, 2018
As of March 31, 2018
(Reference) Shareholders’ equity

6,163
7,235
As of September 30, 2018 5,871 Million yen
As of March 31, 2018
6,893 Million yen

Equity ratio

Million yen%

5,940
6,950

95.3
95.3

2. Dividends
Annual Dividends per share
End of 1Q
Yen

End of 2Q

End of 3Q

Year-end

Annual

Yen

Yen

Yen

Yen

Fiscal Year ended March 31, 2018
―0.00
Fiscal Year ending March 31, 2019
―0.00
Fiscal Year ending March 31, 2019 (Forecast)(Notes) Corrections to most recently disclosed dividend projections : None

―

0.00

0.00

―

0.00

0.00

―1―

3. Consolidated financial forecast for the fiscal year ending March 31, 2019
(April 1, 2018 – March 31, 2019)(Percentages represent changes from the same period of previous year)
Profit attributable toNet income
Operating income Ordinary incomeowners of parentper share

Net sales
Million yen

Full year

150% Million yen-57.7-2,200% Million yen%

Million yen%

Yen

-2,200―-2,200―-52.59―(Notes) Corrections to most recently disclosed financial results projections : None

[Notes](1) Changes in significant subsidiaries during the period (change in scope of consolidation): None(2) Application of special accounting methods for the preparation of quarterly consolidated: Nonefinancial statements(3) Changes in significant accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.
: None2) Changes in accounting policies due to other reasons than above 1): None3) Changes in accounting estimates: None4) Restatements: None(4) Number of shares outstanding (common stock)1) Number of shares outstanding at theend of fiscal term (including treasurystocks)2) Number of treasury stocks at the end offiscal term3) Average number of shares during thefiscal term (cumulative from beginningof quarter)

As of September
30, 2018
As of September
30, 201841,860,400 shares― sharesSix months
ended
September 30,

As of March 31,
2018
As of March 31,
201841,835,400 shares― sharesSix months
41,853,843 shares ended September 37,256,851 shares201830, 2017* These quarterly financial results are outside the scope of quarterly review.
* Explanations regarding appropriate use of forecasts and projections of financial results, and other specificnotes.
All forecasts and projections contained in this presentation are based on the information currently available
to the management and they are not intended to represent our promise to attain them as a goal.
Furthermore, due to various reasons, actual results may differ substantially.

―2―Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished products
Work in process
Raw materials and supplies
Advance payments - otherOther

As of September 30, 2018

6,528,759
77,012990
3,006
23,573
194,581
72,203

5,623,045
11,1502,400

6,900,127

6,002,146

Non-current assets
Property, plant and equipment
Facilities attached to buildings, net
Machinery and equipment, netTools, furniture and fixtures, net

58,563
191
207,59400112,402

Total property, plant and equipment

266,349

112,402

Total current assets

Intangible assets
Other－－
245,610
119,939

13,5140Total intangible assets

13,5140Investments and other assets
Other

55,911

48,618

Total investments and other assets
Total non-current assets
Total assets

55,911

48,618335,775

161,020

7,235,902

6,163,166

Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Accounts payable - other
Other

8,769
35,041
163,729
21,56628,76727,28882,79022,428

Total current liabilities

229,107161,275

Non-current liabilities
Net defined benefit liability
Asset retirement obligations
Deferred tax liabilities

31,46520,0594,700

34,383
21,998
5,051

Total non-current liabilities
Total liabilities―3―

56,22561,432

285,332

222,708

(Thousands of yen)
As of March 31, 2018
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Total shareholders' equity
Share acquisition rights
Total net assets
Total liabilities and net assets―4―

As of September 30, 2018

5,419,931
5,403,516

5,421,181
5,397,566-3,929,896-4,947,239

6,893,551

5,871,507

57,01968,9506,950,570

5,940,458

7,235,902

6,163,166

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the First Six Months Ended September 30, 2018
(Thousands of yen)
For the six months ended
September 30, 2017
Net sales
Cost of sales

182,683
177,943

Gross profit

For the six months ended
September 30, 2018
142,435
66,741

4,739

75,694

Selling, general and administrative expenses

690,660

901,786

Operating loss

-685,920-826,092

23
395
300
14

31
－
7,142
493

733

7,666

－

3,971

－

3,971

-685,187-822,396－－－-685,187

192,671
0
192,671-1,015,067

Income taxes - current
Income taxes - deferred

2,609
810

1,925
350

Total income taxes

3,420

2,275

-688,607-1,017,343-1,274－-687,332-1,017,343

Non-operating income
Interest income
Foreign exchange gains
Subsidy income
OtherTotal non-operating income
Non-operating expenses
Foreign exchange losses
Total non-operating expenses
Ordinary loss
Extraordinary losses
Impairment loss
Other
Total extraordinary losses
Net loss before income taxes

Net loss
Net loss attributable to non-controlling interests
Net loss attributable to owners of parent―5―

Quarterly Consolidated Statements of Comprehensive Income
For the Six Months Ended September 30, 2018
For the six months
ended
September 30, 2017

(Thousands of yen)
For the six months
ended
September 30, 2018

Net loss-688,607-1,017,343

Comprehensive income-688,607-1,017,343

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-687,332-1,274-1,017,343－―6―

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)
For the six months ended For the six months ended
September 30, 2017
September 30, 2018
Cash flows from operating activities
Net loss before income taxes
Depreciation
Share-based compensation expenses
Impairment loss
Increase (decrease) in net defined benefit liability
Interest and dividend incomeSubsidy income
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Other, net
SubtotalInterest and dividend income received
Proceeds from subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of shares resulting from exerciseof share acquisition rights
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope ofconsolidation
Net cash provided by financing activities-685,187
24,724
15,063－
3,323-1,015,067
46,904
11,931
192,671
2,918

-23
-300

-31
-7,142

13,41765,861

15,05525,16919,998992-2,239-5,455-16,849-110,076-638,472-765,869

23

31

300

7,142

-3,255-1,925-641,404-760,621-30,745-1,375-139,496-897-32,120-140,393

10,6802,500－-7,200

10,680-4,700Net increase (decrease) in cash and cash equivalents-662,844-905,714

Cash and cash equivalents at beginning of period

4,950,570

6,528,759

Cash and cash equivalents at end of period

4,287,725

5,623,045―7―