Third Quarter Consolidated Financial Results
for the Fiscal Year Ending March 31, 2023
1. Overview of Consolidated Financial Results
2. Highlights of Business Performance
3. Consolidated Financial Results
4. Forcast Main Product Sales Update
5. Financial Results and Forcast
6. Development pipeline

February 6, 2023
KYORIN Holdings, Inc.

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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 FY2022（¥ in millions）

FY2019FY2020

FY2021

FY20223Q (Apr-Dec)

3Q (Apr-Dec)

3Q (Apr-Dec)

3Q (Apr-Dec)

Change（％）

Full term
FY2022(Forecast）

Change（％）

Net sales

78,61474,95577,71780,707＋3.8

112,000＋6.1

Operating profit

5,271

4,114

2,926

4,702

＋60.7

5,500＋9.8

Ordinary profit

5,836

4,656

3,515

5,336＋51.8

6,000＋7.7

Profit attributable toowner of parent

4,374

4,504

2,483

4,377＋76.3

4,500＋14.4

Third Quarter Consolidated Financial Results for the Fiscal Year Ending March 31, 2023
[Net sales] Sales of new ethical drugs etc. (Japan) increased from year on year by the effort to spread of the product, while the impact of the NIH drug pricerevision (KYORIN pharmaceutical: 8% range) and Covid-19. And also sales of generic drugs increased. As a result, net sales were 80,707 millionyen (an increase of 2,989 million yen year on year)[Profit] Gross profit was 37,055 million yen (an increase of 814 million yen year on year) due to increase in sales, despite a increase in cost of sales ratio dueto the impact of NIH drug price revision etc. On the other hand, decline in SG&A expenses (include of R&D expenses) of 961 million yen (R&D expenses
increased 585 million yen) due to the absence of upfront payment in FY2021 lead to operating profit of 4,702 million yen (increased 1,776 million yen,year on year). Extraordinary income of 1,283 million yen regarding a fire at Nishinihon delivery, and extraordinary loss of 689 million yen regarding
dissolution of ActivX, subsidiary of KYORIN Pharmaceutical Co., ltd., caused to profit attributable to owner of parent of 4,377 million yen.

Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 (forecast)
The forecast for full year announced on May 11, 2022 remain unchanged at this moment.
(There is no change to the dividend forecast announced on May 11, 2022 (Annual dividend of 52 yen per share).

2

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

80.0⚫ Increase in sales of new ethical drugs etc. (Japan)- Main product (Beova, Desalex etc.) grew
- Decrease in sales of long-listed products andout- licensing product to other company⚫ Increase in sales of generic drugs

70.0

60.0

50.0
Net Sales

40.0

Cost ofSales

Cost ofSales

41.5

43.7

Cost ofSales
Ratio

Cost ofSales
Ratio

53.4%Net Sales

80.7

77.7

Cost of sales ratio increased (＋0.7 point)<Reason of decrease>⚫ Increase in sales of main product<Reasons of increase>⚫ Impact of NHI drug price revisions(Kyorin Pharmaceutical: 8% range)⚫ Increase in sales of generic drugs

54.1%
R&D

R&D

30.0(+3.0 bln yen)

Gross profit increased (+0.9 bln yen)

7.2

6.6SG&A cost decreased (－0.9 bln yen)
20.0

SG&A

（excluding R&D）

SG&A

33.3

26.7
10.0

SG&A
（excluding R&D）

SG&A

⚫ R&D expenses increased (+0.6 bln yen)

32.4

Upfront payment, progress in pipeline⚫ SG&A (excluding R&D) decreased

25.2
Operating Profit

Operating Profit

4.7

2.9

Decrease in license fees etc.
(Decline of upfront payment posted in FY2021
and payment of royalty)

4.7

Operating profit increased (+1.8 bln yen)

0.0

FY2021 3Q

FY2022 3Q3

Consolidated Financial Results（Year on Year）（¥ in billions）

FY20213Q (AprDec)

FY20223Q (AprDec)

ChangeNet sales

77.7

80.7+3.0

New ethical drugs,etc. (Japan)

52.4

54.1+1.7

New ethical drugs(Overseas)

0.5

0.5０

Generic drugs

24.9

26.1+1.2■Net sales¥80.7 bln(+ 3.0)●New ethical drugs, etc. (Japan)¥54.1 bln(+１.7)FY2021 (3Q)

FY2022 (3Q)

・Flutiform
9.8
・Desalex
4.3
・Beova6.5
・Lasvic
1.4
・Lyfnua—
・Pentasa
10.9・Kipres
6.1
・Mucodyne
2.9
・Nasonex
1.3
・Uritos
1.0●New ethical drugs (Overseas)⇒⇒⇒⇒⇒⇒⇒⇒⇒⇒●Generic drugs¥26.1 bln

9.1
4.8
9.2
1.8
0.1
9.9
4.6
2.8
1.10.6¥0.5 bln（ －0.7）（ ＋0.5）（ ＋2.7）（ ＋0.4）（ ＋0.1）（ －1.0）（ －1.5）（ －0.1）（ －0.2）（ －0.4）( 0)（＋1.2）

Increase sales in AG products (Kipres AG)
Items launched in FY2022 contribute to sales■Operating profit¥4.7 bln（＋1.8）●Cost of sales ratio : 54.1％（3Q FY2021: 53.4％）[Reasons of decrease] Increase of sales for new drugs (Beova, Desalex etc.)[Reasons of increase] NHI drug price revisions, Increase in sales of generic drugs

Operating profit

2.9

4.7+1.8●R&D : ¥7.2 bln（3Q FY2021: ¥6.6 bln）
Upfront payment (GMAC, Digital Therapeutics), progress in pipeline●SG&A (excluding R&D expenses) : ¥25.2 bln（3Q FY2021: ¥26.7 bln）

Ordinary profit
Profit attributableto owner of parent

3.5
2.5

5.3
4.4+1.8+1.9

Decrease in license fees etc.
・Decline of upfront payment posted in FY2021 and payment of royalty■Profit attributable to owner of parent¥4.4 bln(＋1.9)

Extraordinary profit: gain on insurance of ¥881 mln,
income of compensation for damages of ¥401 mln,
regarding a fire at Nishinihon delivery center
Extraordinary loss: Impairment losses of ¥105 mln, provision for loss on liquidation of4
subsidiaries and associates of ¥583 mln regarding dissolution of ActivX

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

Flutiform(Combination drug for asthma treatment)

Desalex(Antiallergic Agent)

Beova (Kyorin)(β3 adrenergic receptor agonist overactive bladder therapeutics )LasvicNew ethical drugs, etc. (Japan)(New quinolone synthetic antibacterial agent)

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

3Q (Apr-Dec)

Full term

FY2021

FY2022

FY2021

FY2022（Actual）（Actual）（Actual）（Actual）

6.3

5.7

9.8

9.1

－0.7

2.6

3.0

4.3

4.8

4.3

5.5

6.5

0.8

1.0－

Progress tofull term
forecast（％）

FY2021

FY2022（Actual）（Forecast)

－7.1

12.6

12.0

75.6

＋0.5

＋10.4

7.1

8.0

59.7

9.2

＋2.7

＋42.8

8.6

14.1

65.1

1.4

1.8

＋0.4

＋24.4

1.8

3.0

57.8

0.1

－

0.1＋0.1－

－0.5

25.0

7.1

6.5

10.9

9.9－1.0－9.0

14.0

12.5

79.1

3.6

2.7

6.1

4.6

－1.5

－24.8

8.4

6.8

67.0

1.6

1.5

2.9

2.8

－0.1

－3.0

3.5

2.9

93.3

0.7

0.6

1.3

1.1

－0.2

－14.2

2.4

1.8

59.6

0.7

0.4

1.0

0.6

－0.4

－45.1

1.3

0.7

74.1

1.0

1.0

1.6

1.6

0＋0.1

2.1

2.0

77.4

1.0

1.1

1.5

1.6

＋0.1

＋5.6

2.1

2.0

78.9

5.1

5.4

8.5

8.7

＋0.2

＋2.6

12.2

10.7

81.1

1.0

1.1

1.9

1.9

0＋1.2

3.6

3.6

53.4

0.4

0.40.6

0.5－0.1

－9.0

0.8

0.5

95.4

ChangeChange (%)(Spray type allergic rhinitis remedy)

Imidafenacin tablets & OD
“KYORIN”(Therapeutic agent for overactive bladder)5Financial Result and Forcast
3Q (Apr-Dec)

2Q (Apr-Sep)（¥ in millions)

FY2021（Actual）

FY2022（Actual）

FY2021(Actual)FY2022(Actual)

Full term

ChangeChange(%)

FY2021（Actual）

FY2022(Forecast)

Progress
to fullterm
forecast（％）

105,534 112,000

72.1

Net sales

49,10249,09377,717 80,707＋2,989＋3.8

New ethical drugs,etc. (Japan)

33,27932,651

52,369 54,055＋1,686＋3.2

69,72574,50072.6

New ethical drugs(Overseas)

342

312

532＋39＋7.9

1,033

700

76.1

Generic drugs

15,481

16,12824,855 26,119＋1,264＋5.1

34,77536,70071.2

Operating profit

－68

777

2,926

4,702

＋1,776

＋60.7

5,007

5,500

85.5

Ordinary profit

285

1,171

3,515

5,336

＋1,820

＋51.8

5,569

6,000

88.9

Profit attributableto owner ofparent

121

1,242

2,483

4,377

＋1,894＋76.3

3,932

4,500

97.3

493

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Development pipeline
Main R&D Activities -1 (as of February 6 , 2023)
Ph 3 ～ Launch
Stage
Code

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）

StageCodeJapan

OriginFeaturesNoteAdditionalIndicationfor 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, 2023)
Licensing development (License-in)StageJapan

Overseas―Ph 2(Dec 2019)
ASKA
Pharmaceutical

Code

AKP-009

Proposed
Indication

OriginFeatures

NoteBenign
ASKA
Novel androgen receptor
Prostatic
Pharmaceuti modulator mode of action withHyperplasia 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)

Licensing development (License-out)
StagePh 1

Compound /CodeKRP-203

LicenseePriothera

Therapyarea / Action―Origin
In-house

Features
Sphingosine-1-Phosphate
Receptor Agonist

Note
Transfer of intellectual
property(patents and data requiredfor the development and sale) andAPIs (Sep 2020)8

Other (as of February 6, 2023)

Date
Nov 2022

OriginSUSMED

Note
Collaboration research and sales agreement for development of Digital Therapeutics(DTx) in otolaryngology FieldDevelopment using KYORIN’s knowledge in disease areas and clinical development, andSUSMED’s platform, clinical trial management system of DTx and its know-how.

9