FY2018
Overview of Consolidated Settlement

ASKA Pharmaceutical Co., Ltd.
Maruo, Senior Director0Consolidated statements of income
Millions of yen

FY2017FY2018Net sales

48,94446,706

Cost of sales

30,060Gross profit

Increase(decrease)

Rate of changes

27,816△2,23818,88418,890△2,243△ 4.6%

5△ 7.5%
0.0%

Selling, general andadministrative expenses

16,06017,107

1,047

6.5%

Operating income

2,824

1,782

Ordinary income

3,073

1,980

△1,041△ 36.9%Profit attributable toowners of parent
Net income

2,388

1,744

△ 644

△ 27.0%△1,093△ 35.6%
1

Net Sales by Industry Segment (Consolidated)

Millions of yen

FY2017FY2018Percentage of
total

Increase(decrease)

Rate ofchanges

Ethical drugs

44,12741,75789.5%△2,370△ 5.4%

Drug for animal

4,572

4,669

9.9%

96

2.1%

Other

243

278

0.6%

35

14.4%

Total

48,94446,706100.0%△2,238△ 4.6%
2

Sales of Main Products
Millions of yen

Area

Finished products

FY2017
Result※ 1,※2

Medical※1

Obstetrics and gynecology※1

FY2019FY2018ResultPlans

YoY (%)YoY (%)

Candesartans

13,226

11,92490.2%

13,600114.1%

Thyradin

4,912

5,657

115.2%

6,982

123.4%

Rifxima

1,062

2,478

233.3%

3,893

157.1%

Lipidil

4,292

1,803

42.0%

1,208

67.0%

Amlodipine

1,616

1,390

86.0%

1,525

109.7%

Mercazole

1,096

1,159

105.7%

1,338

115.5%

Norlevo

1,208

1,294

107.1%

664

51.3%

Menoaid736

882

119.9%

1,051

119.1%

Ange

894

835

93.4%

1,000

119.8%

Frewell

-

668

-

2,010

300.9%

Luteum

416

392

94.3%

483

123.0%

Relumina

-

363

-

1,981

545.9%

Urology※ 1,※3

Leuprorelin

4,164

4,167

100.1%

4,524

108.6%※1

Bicalutamide

1,576

1,221

77.5%

1,058

86.6%

710

410

57.8%

395

96.2%

Prostal※ 1 Generic Pharmaceutical※ 2 Include combination drugs※ 3 The 1.88mg formulation is for obstetrics and gynecology only, but it totals 3.75mg.

Adoption of "Accounting Standard for Revenue
Recognition" from FY2019
3

Operating Income Analysis (YoY)
Millions of yen

2,824

5

△438
△291

FY2017
Operating income

Gross profit
Increasing

Attribution

Research anddevelopment
costs
Increasing

Depreciation
and amortization
Increasing

△318

1,782

Other SG&A expenses
FY2018
Increasing
Operating income Operating income decreased due to an increase in selling, general and administrative expenses,

mainly in R&D expenses.

4

Consolidated Balance Sheet
End of fiscal 2017

End of fiscal 2018

Millions of yen

Millions of yen

Current liabilities

Current liabilities

14,214Current assets

34,81837,829Long-term liabilities

9,460

Property, plant andequipment
Intangible
Fixed
assetsCurrent assets

12,1293,359

Long-term liabilities

20,735

Property, plant andequipment

13,573

Net assets

Intangible assets

42,55915,332

Investments and otherassetsNet assets

43,456

Investments and otherassets15,92715,458

Total assets 66,235 million yen
Increase(decrease)

18,002

Total assets

Current assets

15,9593,010

Total assets 82,194 million yen

Property, plant
Investments and other
Intangible assets
and equipment
assets

1,444

11,972△469

Current
liabilities

Long-term
liabilities

Net assets

3,787

11,275896
5FY2019 Forecast (Consolidated)

Millions of yen

FY2018Result

FY2019Forecast

From theprevious year
Increase(decrease)

From theprevious year
Rate of changes

Net sales

46,70653,000

6,294

13.5

Operating income

1,782

2,000

218

12.2

Ordinary income

1,980

2,100

120

6.1

Profit attributable toowners of parent
Net income

1,744

1,000

△744

△42.7

Factor Net sales are expected to increase due to the impact of the adoption of the "Revenue Recognition AccountingStandard" and the increase in sales of new products in the field of obstetrics and gynecology, including
RELUMINA, and of RIFXIMA.

 In terms of profits, operating income and ordinary income are expected to increase in line with the increase in net

sales. On the other hand, net income attributable to owners of the parent is expected to decline due to an
extraordinary loss associated with the relocation of the Research Institute.

6

Factors behind the increase in sales in fiscal 2019
Billions of yen

Mainly for
new products
Expand sales

Rixima

900 million

Frywell

1,000 million

Lelumina

1,300 million

+50

530

+37
467

△24

FY2018Net sales

Effect ofDrug price revision

Increase in sales
volumeAccounting standard
for revenue recognition
Impact of adoption, etc.

FY2019Net sales7

FY2018 Summary
FY2019 Initiatives

ASKA Pharmaceutical Co., Ltd.
Yamaguchi, president of director

8

Today's content
 Summary of Fiscal 2018
 Efforts since FY2019
 Rixima
 Obstetrics and gynecology
 Thyroid Relocation to Shonan i-Park Development pipeline Outlook for the Medium-Term Management Plan
9

FY2018 Summary
Major Achievements in FY2018 ①
Maintain share and increase volume of candesartan products

Maintain market share and increase volume of leuprorelinOngoing activities to raise awareness of thyroid diseases

 Steady market penetration of RIFXIMA
 Acquisition and launch of new products in the field of obstetrics and gynecology
Launched on October 4, 2018 from Nobel Pharma Corporation
Treatment for dysmenorrhea
Co-promotion
JEMINA ® Combination Tablets
Launched on December 14, 2018
Treatment for dysmenorrhea
FREWELL ® Combination Tablet LD/ULD "ASKA"
Authorized generics
Launched on March 1, 2019
GnRH antagonist
RELUMINA ® Tablet 40mg Introduced from Takeda Pharmaceutical Co., Ltd.

 Development pipelines (AKP-009, Ulipristal, etc.)10

FY2018 Summary
Major Achievements in FY2018 ②
 Important investment<Global Initiatives>

NeoASKA Pharma Private Limited<Improvement of production system>

Fourth Pharmaceutical Building of
Iwaki Plant (expansion of dedicated chilladen line)<Strengthening of drug discovery research functions>

Concluded a tenant agreementwith Shonan i-park Co., Ltd.

11

RIFXIMA: Results※ Our financial statements
Yen
4,500

RIFXIMAResult・ PlansChange※ Volumes

Sales trends after the launch

3,893

4,000

As of now

3,500

3,000

2,500

Year-on-yearchange: 233.3%

2,478
All cases
deregistered2,000

February 2019
1,500

1,062

1,000

500

December 2017

136

0

FY2016

Release of restrictions on thenumber of prescriptions

launchFY2017FY2018FY2019 (Plan)"Revenue Recognition" from FY2019
Adoption of accounting standards for

November
2016

April
2017

2018

2019
12

RIFXIMA: Toward Value Maximization
To the Key Drug of hepatic
encephalopathy
1

Switching from existing
antibiotics
 Target of all surveys
 Distribution management items

2

Combination with existingtreatments
 Release of restrictions on thenumber of prescriptions
 All cases deregistered3

4

FY2017
End of the day

14%
Hepatic
Encephalopathy
Approx. 33,000(Our estimates)

6%

First half of 2018
Increasing

5%

Second halfof 2018
Increasing

For about 25% of the totalCase of rixima

Positioning of Central Drugs

Achieve further market
penetration

For the treatment of HE
Aim for "1st line"
13

Obstetrics and Gynecology: New Products
Underdevelopment<FY2018>
Launch and promotion of 3 products Uripristal
Uterine fibroid Relugolix

Endometriosis

RELUMINA ® Tablets 40mg
※ Uterine leiomyoma

Authorized generics
FREWELL ® Combination Tablets LD/ULD "ASKA"

JEMINA ® Combination Tablets※ Copromotion<FY2019>
・ Fostering three products
・ Progress of Products
under Development
14

Ob/Gyne: JEMINA (LEP formulation)* co-promotion
Jeminer adoption rate at the target

Increasing LEP Market(Launched in October 2018-April 2019)※Number of tablets15
LEP Products ※Defined in-house
Low dose Estrogen Progestin
Low-volume estrogen-progestin
combination drug

41%

2014

2015

2016

2017

Copyright © 2019 IQVIA.
Prepared from April of JPM 2014 to March of 2019
All rights reserved

2018

September 2019
Release of restrictions on thenumber of prescriptions
15

Ob/Gyne: FREWELL(LEP formulation)*Authorized generics
Share within GE asa total of LD and ULD
ASKA

LD

Mar. 19

19.7%※ Launch after
selling by others

LD・ULD Market Share of ASKA
80%

60%

40%

20%

ULD
Mar. 19

ASKA

63.4%
※ Simultaneous launchby other companies

Copyright © 2019 IQVIA.
Prepared from October of JPM 2018 to March of 2019
All rights reserved
GE share by standard

39.7%
LaunchDecember
12月

January
1月

2018
2018年

February
2月

March
3月

2019
2019年
あすか
ASKA

Other companies
他社合計

Share of LD/ULD in GE

Aim for 60%

16

Infiltration of the uterology treatment
Year of launch of the agent for thetreatment of Uterine Myoma
1992

Patients who are diagnosed
with Uterine Myoma• Buserelin acetate (nasal drops)
Patients receiving

1995

1997

1999

2019

• Leuprorelin Acetate (Subdermal)

Approximately 130,000
For GnRH administration
About 50,000• Nafarelin acetate (nasal drops)• Buserelin acetate (subcutaneous
injection)• RELUMINA ® Tablets 40mg (oral)

Uterine Myoma Treatment
For the first time in 20 years

About 1,800,000

For the treatment ofhormones(including evolution)

Source: Japan Medical Data Center

Provide new alternatives of
Uterine Myoma treatment 17

Ob/Gyn: RELUMINA ②
Properties of Relumina
GnRH antagonist formulation
For the first once-daily oral administrationin Japan

Recruitment status of
all 81 universities hospitals■ Adapted ■ Expected to be adopted in the first half of 19■ Expected to be adopted from the second half of 19

Decreased for the level of estradiol inthe sera within one day ofadministration
Studies that assess the effectiveness(amelioration of the passage of length of time)
for patients with myeloma have verified
non-inferiority to leuprorelin Acetate
Be based on uterine fibroids in Japanese clinical studies
Symptoms (too many months, feminine abdominium, lowback pain, and anemia)
It has been confirmed that the improvement is effective.

44
Unis

Side Effect

193 out of 225 (85.8%) in domestic clinical trials up to approval.
Adverse effects, including abnormal clinical laboratory values,
are recognized, and major side effects are recognized.
As follows: Hotel and fraudulent uterological haemorrhage(42.2% each), overage of month (21.8%),This was due to headache(10.2%), hyperperspiration (8.9%) and sexual bleeding (6.7%).
Significant adverse reactions included depression (<1%)
and hepatic dysfunction(Frequency unknown) is reported.

※ For details, please refer to the attached document.

Meet medical needs
18

Thyradin~ Toward the 100th anniversary of the birth of Thyradin in 2022

Disease enlightenment

Sales trend of Thyradin※ Volumes

May 25: World Thyrogenic Day
Symbol for raising awareness of thyroid diseases“Butterfly ribbon”

We have set as the educational period every May,

Employees wear these badges
From the Japanese Thyroid Society

Academic Society Activities, etc

2015

2015

2015

Increasing the volume of sales<4/26> 91st sponsored symposium held by the Japan Endo-economics Society<4/28> 91st Endocrine Society of Japan Hot Topics<5/25> Global Thyle Day Public lectures (Kobe on May 19, Kyoto on May 20,
Osaka on May 27)<6/2> 85th Roundtable on Clinical Endocrine Tuberculosis<6/28> 30th Endocrine Surgery Society of Japan sponsored symposium<9/1> Daytime health fair
<10/28>51st Japan Thyroid Surgery Association Morning Seminar<11/23>61st Japan Thyroid Society luncheon seminar<12/1> 86th Roundtable on Clinical Endocrine Measures<2/9> Thyroid Pathophysiology Study Group 35th Session Sales trends forthyroid productsContinue activities to raise awarenessof diseases and academic societies

19

Relocation of Shonan Health Innovation Park
TargetAccelerating Open Innovation to Strengthen Drug Discovery Functions
Expected benefits
・ Efficiently Promote Advanced Drug Discovery Researchby Utilizing the Latest Devices and Technologies
・ Collaboration with tenant companies such as drug discovery support ventures
and academia-originated bioventures
・ Accumulated many researchers and organizations, and active exchanges
with researchers from various industries, academia, and government

Timing of relocation
Relocation completed by the first half of FY2020
20

Development Pipelines
Status of R&D (as of May 2019)
Development Number (genericname)/Area/Indication

Changes from the previous assessment
Ph Ⅰ

AKP-015 (levothyroxine sodium)
Myxoedematous coma/severe
hypothyroidism

AKP-009
Benign Prostatic Hyperplasia

Ph III(PhII and PhIII not required)

CDB-2914 (Ulipristal)
Uterine leiomyoma
TAK-385(relugolix)
Endometriosis
AKP-501 (folitropin gamma)
Infertility
L-105 (rifaxin)
Crohn's disease
L-105 (rifaxin)
Hepatic encephalopathy (Children)

Ph Ⅱ

Application

Approved

Underapplication

Starting
PhⅢ

PhI
termination
PhI
termination
PreparingPhI
termination

21

Medium-Term Management Plan
FY2016FY2017FY2018FY2019Next
Management
Plan

Results

Results

Results

Plan

Estimated
Targets

Net Sales

485

489

467

530

700

Operatingincome margin

3.7%

5.8%

3.8%

3.8%

10.0%

ROE

7.8%

5.8%

4.1%

2.3%

8.0%

Consolidated

Medium-Term
Management Plan
Consolidated

800

FY2020600

Estimated Targets

400

Sales

70.0

Operatingincomemargin

10.0%

ROE

8.0%

Net sales(¥100million)

700
485

489

467

FY2016FY2017FY2018530200
0FY2019FY2020

Next
22

Aska Pharmaceutical Co., Ltd.
Ethical drug business

ASKA Pharmaceutical Medical Co., Ltd.

Inspection and Healthcare Businesses

Aska Animal Health Co., Ltd.

Animal Feed and Pharmaceutical Busin

23

23

Contribute toward the improvement ofpeople's health and progressin medicine through the developmentof innovative products

24References:"Revenue Recognition Accounting Standard"
1. Summary On March 30, 2018, the Corporate Accounting Standards Committee released the "Accounting Standards

for Revenue Recognition" ("This Standard").
 This system was enacted and will be enforced from FY2021 (early adoption from FY2018 onward).

Previously, under Japanese accounting standards, there was no comprehensive accounting standard forrevenue recognition. Instead, sales were recorded on the basis of "delivery of goods" and "receipt of cash
equivalents." However, this standard has been issued and will be applied in order to conform with theInternational Financial Reporting Standards (IFRS).
・ Revenue is recognized when not only "ownership" and "possession" but also "significant risks" aretransferred to the customer.
・ In agency transactions (brokerage, etc.), only commissions are net sales after offsetting net sales
against purchases.
・ Rebates are deducted from sales rather than recorded as SG&A expenses.
 We are able to compare sales with those of other companies by changing the timing of recording sales. We

also introduced ERP in fiscal 2018, and the environment for applying this standard is in place, so we havereached early adoption.
25

2. Effect of this standard on usPreviously, sales were recorded when products were shipped to Takeda Pharmaceutical.



Under this standard, the "significant risks" are deemed to have been transferred when Takeda
Pharmaceutical delivers the product to the dealer. Therefore, the timing of recording sales of Takeda
Pharmaceutical after the adoption of this standard is the time when the product is handed over to the dealer.

26

References: Percentage distribution of ethical drugs

FY2018FY2017FY2016GE
Branded
36.0%

GE
GE

Branded35.8%

Branded
39.5%

60.5%

64.0%

64.2%

Increase The ration of Branded drugs

27

Reference: Investment cost
Depreciation andamortization

Capital investment

Research and Development
costs
Yen

Yen

Yen

4,970
4,055

2,619

587

634

FY2017FY2018FY2016

2,447

2,324

FY2017FY2018

4,493

2,491

FY2016FY2017FY2018FY201628

 The contents regarding future forecast in this material are known, un-knowrisks, uncertain due to information based on our assumption and forecasts bypress release at the time that we presented.

 Actual results and development forecasts may differ materially from these

forecasts due to various factors.

 This information includes information on pharmaceuticals (including thoseunder development), but the content of this information is not intended foradvertising or medical advice.
Contact

Corporate Planning DepartmentTel: 03-5484-8366e-mail : kouhou@aska-pharma.co.jp

2929