Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2018
[Japanese GAAP] (Consolidated)
February 14, 2018
Name of Company
BrightPath Biotherapeutics Co., Ltd.
Listed Market Mothers, TSE
TSE Code4594
URL https://www.brightpathbio.com/english/
Representative(Title)
President & CEO(Name) Kenichi Nagai
Contact(Title)
Director/CFO(Name) Teruhiko Sakai(TEL) +81-3-5840-7697
Scheduled date of submission of quarterly report: February 14, 2018
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 3rd quarter of the fiscal year ending March 31, 2018
(April 1, 2017 – December 31, 2017)(1) Consolidated results of Operation
Net sales
Million yen(Percentages represent changes from the same quarter of previous year)
Profit attributable toOperating income
Ordinary income
owners of parent%

Million yen%

Nine months ended December 31, 2017
246
-42.8
-1,169―-1,172―Nine months ended December 31, 2016
431―
-699
―-711
―
(Note) Comprehensive income
Nine months ended December 31, 2017
-1,176 Million yen ( ― %)Nine months ended December 31, 2016
-716 Million yen ( ― %)Fully diluted net
Net income per shareincome per share forfor the quarterthe quarter%

Million yen%

-1,175-712

―
―

Yen

Million yen

Yen

Nine months ended December 31, 2017-31.52―Nine months ended December 31, 2016-21.45―(Notes) Fully diluted net income per share for the quarter is not stated as net loss was recorded for this period although there areresidual shares.

(2) Consolidated financial Positions
Total assets

Net assets

Million yen
Million yen
As of December 31, 2017
4,471
4,231
As of March 31, 2017
5,408
5,201
(Reference)
Shareholders’ equity As of December 31, 2017 4,175 Million yen

Equity ratio
%

93.4
95.8
As of March 31, 2017

5,179 Million yen

2. Dividends
Annual Dividends per share
End of 1Q

End of 2Q

Yen

Fiscal Year ended March 31, 2017―
Fiscal Year ending March 31, 2018―
Fiscal Year ending March 31, 2018 (Forecast)(Notes) Corrections to most recently disclosed dividend projections : None

End of 3QYear-end

AnnualYen

Yen

Yen

Yen

0.00
0.00

――

0.00

0.00

0.00

0.00

3. Consolidated financial forecast for the fiscal year ending March 31, 2018 (April 1, 2017 – March 31,2018)
Net sales
Million yen(Notes)(Percentages represent changes from the same period of previous year)
Profit attributable toOperating income Ordinary income
Net income
owners of parent% Million yen% Million yen

Full year280-47.1-2,000―-2,000
Corrections to most recently disclosed financial results projections : None

1% Million yen%Yen――-53.73-2,000[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 financial: Nonestatements(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 December 31,
2017
As of December 31,
2017
Nine months ended
December 31, 201737,600,700 shares― shares37,295,466 shares

As of March 31,
2017
As of March 31,
2017
Nine months ended
December 31, 2016

37,218,400 shares― shares33,232,809 shares*These quarterly financial results are outside the scope of quarterly review.
* Explanations regarding appropriate use of forecasts and projections of financial results, and other specific notes.
All forecasts and projections contained in this presentation are based on the information currently available to themanagement and they are not intended to represent our promise to attain them as a goal. Furthermore, due tovarious reasons, actual results may differ substantially.

2

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of December 31, 2016

As of December 31, 2017

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

4,950,570
54,944

3,942,037
34,783Merchandise and finished products
Work in process

180
18,557

1,890
2,850

Raw materials and supplies
Advance payments - other

23,573
136,909

23,573
156,440

Other

54,734

68,763

5,239,469

4,230,339

Facilities attached to buildings, net
Machinery and equipment, net

38,789327

57,856225

Tools, furniture and fixtures, net

76,755

123,702

Total property, plant and equipment

115,872

181,784

Other

13,78914,266

Total intangible assets

13,78914,266

39,16945,011

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

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

39,16945,011

168,831241,062

5,408,300

4,471,402

Liabilities
Current liabilities
Accounts payable - trade22,554

20,517

Accounts payable - other
Income taxes payable

89,17924,689134,199
13,250Other

24,846

18,618

Total current liabilities

161,268

186,586

Net defined benefit liability
Asset retirement obligations

25,21916,55228,009
20,036

Deferred tax liabilities

4,110

4,814

Non-current liabilities

Total non-current liabilities
Total liabilities

345,882

52,860207,151

239,447(Thousands of yen)
As of December 31, 2016

As of December 31, 2017

Net assets
Shareholders' equity
Capital stock
Capital surplus

3,774,413
3,757,998

3,859,963
3,843,547

Retained earnings-2,352,753-3,528,166

Total shareholders' equity

5,179,658

4,175,345

Subscription rights to shares

20,216

56,610Non-controlling interests
Total net assets
Total liabilities and net assets

41,274-5,201,149

4,231,955

5,408,300

4,471,402

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the Nine Months Ended December 31, 2017
(Thousands of yen)
For the nine months ended
December 31, 2016
Net sales
Cost of sales

For the nine months ended
December 31, 2017

431,430
423,034

Gross profit

246,634
240,058

8,395

6,576

Selling, general and administrative expenses

707,606

1,176,105

Operating loss

-699,210-1,169,529

Non-operating income
Interest income

1423

Subsidy income
Other108300
17Total non-operating income

122341Non-operating expenses
Share issuance cost
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss

9,064

292

3,739

2,528
409

12,8043,230-711,892-1,172,418

372-

Extraordinary losses
Loss on retirement of non-current assets

372-

Loss before income taxes

Total extraordinary losses-712,264-1,172,418

Income taxes - current
Income taxes - deferred

2,010
2,499

3,572
696

Total income taxes
Net loss
Net loss attributable to non-controlling interests
Net loss attributable to owners of parent

5

4,510

4,268

-716,775-1,176,687-3,892-1,274-712,882-1,175,412

Quarterly Consolidated Statements of Comprehensive Income
For the Nine Months Ended December 31, 2017

Net loss
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6

For the nine months
ended December 31,
2016-716,775(Thousands of yen)
For the nine months
ended December 31,
2017-1,176,687-716,775-1,176,687-712,882-3,892-1,175,412-1,274