First 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. Main Product Sales Update
5. Financial Results and Forcast
6. Development pipeline

August 2, 2023
KYORIN Pharmaceutical Co., Ltd.

P.2
P.3
P.4
P.5
P.6
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 outlooks
based 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.

Notice: This document has been translated from a part of the Japanese original for reference purposes only. In the event of anydiscrepancy between this translated document and the Japanese original, the original shall prevail.
1Overview of Consolidated Financial Results for FY2023（JPY millions）

1Q (Apr-Jun)

Change（％）

Interim term
FY2023（Forecast）

Change（％）

Full term
FY2023(Forecast）

Change（％）

116,200+2.6

FY2020

FY2021

FY2022

FY2023

1Q (Apr-Jun)

1Q (Apr-Jun)

1Q (Apr-Jun)

Net sales

24,68924,695

24,61927,854＋13.1

53,700+9.4

Operating profit

2,014－756

489

710

＋45.1

600

－22.9

6,000 +17.1

Ordinary profit

2,265－491

779

913＋17.2

900－23.2

6,500 +11.5

Profit attributable toowner of parent

1,609－462

1,183676－42.8

700－43.7

4,900+3.7

First Quarter Consolidated Financial Results for FY2023[Net sales] Sales of new drugs etc. (Japan) increased from year on year by sales increase in Beova, Lasvic etc. by the efforts to spread of the product, while
the impact of the NHI drug price revision. And also sales of generic drugs increased. As a result, net sales were 27,854 million yen (an increase of3,234 million, yen year on year)[Profit] Gross profit was 12,232 million yen (an increase of 1,193 million yen year on year) due to increase in sales. On the other hand, SG&A expenses
increased 972 million yen (R&D expenses decreased 273 million yen) . As a result, operating profit was 710 million yen (a increase of 220 million yen,year on year). Profit attributable to owner of parent was 676 million yen (a decrease of 506 million yen) , compare to an extraordinary income of 879
million yen in previous year.

Consolidated Financial Results for FY2023 (Forecast)
The forecast for the interim term and full term announced on May 11, 2023 remain unchanged at this moment.
(Progress compared with the forecast for the interim term, net sales: 51.9%, operating income: 118.4%)
There is no change to the dividend plan announced on May 11, 2023 (Annual dividend of 52 yen per share).

2

Highlights of Business Performance（JPY billions）（JPY billions）

Net sales increased
25.0

15.6

Cost ofSales

Cost of sales ratio increased (＋0.9 %point)

13.6<Factors of decrease>⚫ Increase in sales of new drugs

Cost ofSales Ratio

15.0

Net Sales

Net Sales

55.2%

2.3

（excluding R&D）

5.0

8.3

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

R&D

Gross profit increased (+ 1.2)

56.1%

2.0

R&D

SG&A

Cost ofSales Ratio

27.9

24.6
10.0

⚫ Increase in sales of new drugs- Main products (Beova, Lasvic) grew
⚫ Increase in sales of generic drugs

Cost ofSales

20.0

SG&A cost increased (+ 1.0 )
SG&A

SG&A

（excluding R&D）

10.5

9.5

SG&A

⚫ R&D expenses decreased (－0.3)

11.5- Dissolution of ActivX (Mar 2023)

Operating
IncomeOperatingIncome⚫ SG&A (excluding R&D) increased (+1.2)- Increase in license fee, personnel expenses

0.7

0.5
0.0(+ 3.3 )0.7

FY2022 1Q

FY2023 1Q

Operating profit increased (+ 0.2)
3

Consolidated Financial Results（Year on Year）（JPY billions）■Net sales

27.9●New drugs (Japan)（JPY billions）

FY2022 1Q

FY2023 1Q

ChangeNet sales

24.6

27.9＋3.3

New drugs (Japan)

16.4

18.9＋2.5New drugs(Overseas)
Generic drugs

0.1
8.1

0.1
8.9

0＋0.8

18.9
FY2022 (1Q)

・Beova・Lasvic
・Lyfnua
・Desalex
・Flutiform
・Pentasa
・Kipres・Mucodyne
・Nasonex
・Uritos

2.7
0.4
0.1
1.6
2.9
3.4
1.5
0.8
0.4
0.2

(+3.3)(+2.5）FY2023 (1Q)

⇒⇒
⇒
⇒⇒⇒
⇒
⇒⇒
⇒

4.2
1.1
0.2
1.6
3.1
3.1
1.3
1.0
0.2
0.1

（ ＋1.5）（ ＋0.7）（ ＋0.1）（0）（ +0.2）（ －0.3）（ －0.2）（ ＋0.2）（ －0.2）（ －0.1）●New drugs (Overseas)

0.1（●Generic drugs

8.9（＋0.8）

0）Increase sales in AG products (Kipres AG, Nasonex AG)
Items launched in June 2023 contribute to sales■Operating income

0.7（+0.2）●Cost of sales ratio : 56.1％（FY2022 1Q: 55.2％）

Operating profit

0.5

0.7＋0.2[Factors of decrease] Increase in sales of new drugs[Factors of increase] NHI drug price revisions, sales increase in generic drugs●R&D : 2.0（FY2022 1Q: 2.3）
Dissolution of ActivX (Mar 2023)

Ordinary profit
Profit attributableto owner of parent

0.81.20.90.7＋0.1
ー0.5●SG&A (excluding R&D expenses) : 9.5 (FY2022 1Q: 8.3）
Increase in license fees and personnel expenses.

■Profit attributable to owner of parent

0.7（－0.5）

FY2022 1Q: Extraordinary profit of gain on insurance of ¥879M regarding a fireat Nishinihon delivery center.

4

Main Product Sales Update
1Q (Apr-Jun)(JPY billions）

FY2022

FY2023（Actual）（Actual）

ChangeChange（％）

Interim term
Progresstointerim(%)

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

Lyfnua(selective P2X3 receptor antagonist for the treatment of chroniccough)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)

Progressto fullterm (%)

Full term

FY2022

FY2023

FY2022

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

2.7

4.2

＋1.5

＋56.4

47.6

22.3

5.5

8.8

12.9

18.9

0.4

1.1

＋0.7

＋146.4

78.4

33.6

1.0

1.4

2.5

3.2

0.1

0.2

＋0.1

＋253.6

33.7

12.8

0.1

0.5

0.2

1.3

1.6

1.6

0－0.550.6

18.2

3.0

3.2

8.5

8.9

2.9

3.1

＋0.2

＋10.2

56.7

27.4

5.7

5.5

12.0

11.4

3.4

3.1

－0.3

－8.1

51.0

25.9

6.5

6.0

12.8

11.8

1.5

1.3

－0.2

－9.4

58.7

25.3

2.7

2.2

6.6

5.3

0.8

1.0

＋0.2

＋29.5

72.1

33.1

1.5

1.4

3.5

3.0

0.4

0.2

－0.2

－42.1

59.8

16.9

0.6

0.3

2.5

1.2

0.2

0.1

－0.1

－27.0

100.4

50.0

0.4

0.1

0.7

0.2

0.5

0.5

0－6.3

46.3

23.8

1.0

1.0

2.0

1.9

0.50.4

－0.1

－16.9

38.1

18.8

1.1

1.0

2.1

2.1

2.8

3.0

+0.2

+6.8

60.1

26.7

5.4

4.9

13.3

11.0

0.6

0.5

－0.1

－26.9

48.0

13.5

1.1

0.9

4.7

3.4

0.2

0.2

0

－13.4

65.2

32.6

0.4

0.2

0.7

0.4

5

Financial Result and Forcast

1Q (Apr-Jun)（JPY millions)

FY2022

FY2023（Actual）（Actual）

ChangeChange（％）

Interim term
Progress tointerimterm
forecast（％）

Progress tofull term
forecast（％）

Full term

FY2022

FY2023

FY2022

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

Net sales

24,61927,854＋3,234＋13.1

51.9

24.0

49,09353,700113,270

116,200

New drugs, etc.
(Japan)16,373

18,944＋2,571

＋15.7

51.6

24.0

32,651

36,70074,77079,100

142

55

－87

－61.4

27.5

13.8

312

200

308

400

Generic drugs

8,103

8,854

+750

＋9.3

53.0

24.2

16,12816,70038,19036,600Operating profit

489

710

+220＋45.1

118.4

11.8

777

600

5,123

6,000

Ordinary profit

779

913

+134

＋17.2

101.6

14.1

1,171

900

5,827

6,500

1,183

676

－506

－42.8

96.7

13.8

1,242700

4,723

4,900

New ethical drugs(Overseas)

Profit attributable toowner of parent

6

Development pipeline
Main R&D Activities -1 (as of August 2 , 2023)
Ph 3 ～ Launch
Stage
CodeProposed 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）

StageCodeJapan

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 August 2, 2023)
Licensing development (License-in)StageJapan

Overseas―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 is in preparation

Licensing development (License-out)
Stage
Ph 3

Compound /CodeKRP-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 August 2, 2023)

CodeKRP-DT123

Proposed
Indication
Tinnitus

OriginSUSMED

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

9