Security Code:4584

Financial Results for 3Q FY 2023
(Fiscal Year Ending March 31, 2024)
February 7, 2024

Biotech Striving for Value Creation－For a Comprehensive Healthcare System for Children,Families, and Society －Kidswell Bio Corporation

Agenda◆ Financial Highlights in the 3Q FY2023◆ Strategies for Maximizing Corporate Value◆ Biosimilars Business Updates◆ Cell Therapy Business Updates- Establishment plan of S-Quatre Corporation -◆ IR Strategies
Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

2

Financial Highlights in the 3Q FY2023

3

Financial Results in 3Q FY 2023 (PL): Income Statement
Unit：thousands yen

FY2023 ending March 31, 2024
Subject

Results for 3Q FY2022

Results for 3Q

Year-onyear ratio

Forecast

Progress
rate

1,726,862

1,566,742

91%

654,042

703,808108%

Gross profit

1,072,819

862,934

80%

Selling, general and administrative expenses

1,208,342

1,529,959

127%

R&D expenses

579,055

807,465

139%

Other expenses

629,287

722,493

115%

Operating loss

-135,523-667,025---1,500,000--

Net loss-194,023-712,858---1,550,000--

Net loss for the quarter-194,930-747,400---1,550,000--

Gross sales
Cost of goods sold3,500,000

45%

1,600,000

50%• Due to adjustments in the manufacturing schedule of some biosimilar products, delivery scheduled for the current fiscal year may bedelayed to next fiscal year. Currently under investigation with CMOs, but if the delivery date is delayed to the next fiscal year ,strong
demand will be a positive factor for next year's sales.
• GBS-010 (Pegfilgrastim biosimilar), which was launched in November 2023, will have a limited contribution to sales this fiscal year. Itis expected to grow significantly from next fiscal year onward.
Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

4

Financial Results in 3Q FY 2023: Balance Sheet
Unit：thousands yen

Subject

4Q FY2022

3Q FY2023

Current assets

3,697,155

5,036,812（Cash and cash equivalents）

1,067,162

2,186,682（Trade receivables）

1,088,766

481,855（Products）

213,007

187,960（In-process inventory）

422,308

1,149,405（Advance payments）

821,536

819,463（Other current assets）

84,373

211,444

Non-current assets

197,609

161,723

Total assets

3,894,765

5,198,535

Current liabilities

1,055,839

1,988,383

Non-current liabilities

1,605,420

1,766,610

Total liabilities

2,661,259

3,754,993

Total shareholders’ equity

1,233,505

1,443,541

Total liabilities and shareholders’ equity

3,894,765

5,198,535• Cash and cash equivalents balance was improved due to additional bank loan from Mizuho Bank.
• Based on the strong sales performance of each biosimilar product, working capital for manufacturing keeps high level to ensure
future stable supply. Continue to coordinate with partner companies to improve capital efficiency.
Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

5Strategies for Maximizing Corporate Value

6

KWB’s management issues①Concentration ofmanagement resource② Optimization of financing③ Visualization of businessmethodsvalue

Maximizing corporate value, realizing stock price recovery andimprovement

Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

7

① Concentration of management resource
Business progress by the end of 2023••

Patent applications have been
completed for some projects based onresearch results.

Cell Therapy Business

Biosimilars Business

New Biologics Business•Launched four BS products throughcollaborative development with partnercompanies.
Started discussions with potential
partner companies regarding the 5th BS
product, etc.

••

Started clinical development with thefirst generation SHED.
Research is progressing on the secondgeneration SHED, etc.

Selection and Concentration• For accelerating efficiently utilization of management resources and improvement in business value,management resources (human resources, funds) will be concentratedly invested in the following two
businesses instead of three businesses (biosimilars, new biologics, and cell therapy) that were previouslydispersed.
➢ Biosimilars business as a stable revenue base business➢ Cell therapy business where progress in R&D activities is more noticeable as a growth business• New biologics business will focus on business development activities for collaboration and alliances with externalcompanies.
※SHED: Stem cells from Human Exfoliated Deciduous teeth（乳歯歯髄幹細胞）

Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

8

② Optimization of financing methods ③ Visualization of business value• By making the biosimilars business and the cell therapy business separate companies, KWB expects to➢ carry out financing measures according to the characteristics of each business,➢ improve the "visualization of business value" by disclosing the performance of each business.

• The new company plans to carry out its own flexible financing, including partner companies and venture
capital (Diversification of Financing Methods) .
KWB

S-Quatre Corporation

Core business

Biosimilars business

Cell therapy business (SEHD R&D)

Business characteristics

Middle-risk and middle-returnHigh-risk and high-return

Position of business (Businessstage)
Strategies

Revenue base business (Return stage)
Expanding profitability from sales of launched BS
products and new product development

Growth business (Upfront investment stage)
Pioneer benefits from upfront investment in advanced
modalities

Financing methods (usage offinancing)

Debt financing (for manufacturing)

Equity financing (for SHED R&D activities)• Expand profits of launched four products• Conclude contracts with partner companies on
new BS products• Progress in clinical development of the firstgeneration SHED
• Conclude contract with partner companies• Progress in clinical development of the second
generation SHED

Major IR events

Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

9

Biosimilars Business Updates

10Topics
Accelerate further growth while focusing on maximizing profits from launched products
For growth of launched products after FY2024◆ Strategies for increased demand✓ For responding to the steady increase in demand, KWB will continue to expand the manufacturing capacity of CMOs
(partially completed)✓ Based on forecasts from partner companies, KWB is adjusting the production schedule in and after the next fiscal
year. (partially completed)✓ Continue discussions with financial institutions on additional financing to meet the increase in manufacturing working
capitalFor further growth of the biosimilar business◆ Consideration of the development of 5th biosimilar product, etc.
✓ Actively promoting the development of new biosimilars considering national policies to promote the use of biosimilars•

Completed selection of development of highly profitable BS• Under discussions with several potential collaborative development partners.
Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

11

Cell Therapy Business Updates- Establishment plan of S-Quatre Corporation -12

Outline of establishment plan of the new company• The cell therapy business using stem cells from human exfoliated deciduous teeth (SHED), which R&D
activity is driven as a future growth business, will be separated from KWB and succeeded to the newcompany, S-Quatre Corporation.
• The new company was named S-Quatre Corporation because its core business is research anddevelopment of SHED utilizing SHED stable supply platform "S-Quatre🄬”• Will be established as a 100 % subsidiary of KWB on April 1, 2024.
Outline of the new company

PresentBiosimilars

NewBiologics

From April 1, 2024

Company name

S-Quatre CorporationLocation

1-2-12, Shinkawa, Chuo-ku, Tokyo, 104-0033,
Japan

Scheduledestablishment

April 1, 2024

100%

Amount of capital

5,000 thousand yen

S-Quatre Corp.

CEOBoard of Directors
AuditorYasuyuki Mitani
Masayuki Kawakami, Shinya Kurebayashi
Osamu Sugawara

Core business

Cell therapy（SHED-based R&D）

Biosimilars

Cell therapy

Cell therapy*S-Quatre (SHED Source Supply Service)

New
Biologics

Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

13

S-Quatre: SHED business plan
For maximizing the value of S-Quatre®, S-Quatre will flexibly promote collaboration with partnercompanies, secure external funds and aim to accelerate the development of SHED.
Major R&D activities
Expanding the use of SHED in avariety of modalities
First generation SHEDClinical development

SHED

１３
SHED ×oncolyticvirus

SHED × TregSHED × Exosome（SHED stable supply platform）

２
Second generation SHED
To the next stage
SHED × Gene transfection

Implementation of own uniquefinancing

４

Overseas expansion ofSHED business with SQuatre® in compliancewith U.S. FDA◆ Financing through collaboration at the early stage with partner companies and venture
capitalists （Starting industry-sponsored clinical study ）◆ Acquisition of public funds by strengthening collaboration with academia (Development ofinvestigator-led clinical study）
Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

14

SHED Development Status (Cerebral palsy)

AutologousSHED• Manufacture of SHED fromthe patient's own baby
teeth

Establishment ofmanufacturing andadministration methods

Approved byCommittee forRegenerative
Medicine• Administered to the patientand confirmed safety

Clinical research (Nagoya Univ.)
Under enrollment of the cases

FY2023 (Present)

Allogenic SHED
Completed a part of PMDA consultation

Phase I/IIa• SHED from healthy donors• Can be administrated tomany patients andconfirming theeffectiveness and safety.

Completion of establishment of S-Quatre
Completion of MCB manufacturing
Completedpreliminary
toxicity
testing

Complete
examination ofmanufacturingmethods
of clinical trial
materials

Trialmanufacturing
in a GMP facility

Manufacturing(GMP)

Toxicity
testing(GLP)

Aiming to apply forclinical trials by the endof FY2025

Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

15

IR Strategies

16IR seminars

Basic IR Policy：Increase opportunities for dialogue with the stock market and investors＜Annual IR Schedule＞

IR Seminars

FinancialResults

Jul.

Aug.

Sep.

Announcement ofFinancial Result for
1Q FY 2023

Oct.

Nov.

Dec.

Announcement of Financial
Result for 2Q FY 2023

IR Seminar for
Individual
shareholders in Tokyo
and Osaka (Hybrid)

IR seminar for analysts andinstitutional investors(Hybrid)Video
streaming

1Q FY2024

4Q FY2023

3Q FY2023

2Q FY2023

Jan.
2024

Feb.

Mar.

Apr.

Announcement ofFinancial Resultfor 3Q FY 2023

MayJun.

Announcement of ShareFinancial Result holders’for 4Q FY 2023 Meeting

IR Seminar for Individualshareholders in Tokyo(scheduled)

IR seminar for analysts
and institutional
investors (Hybrid)

Supplementary Explanation forFinancial Result
Video streaming

Videostreaming

Actively join IR events for company briefing
Continuing timely video distribution at the time of financial results and press releases
Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

17

KIDS WELL, ALL WELL
All for Kids, Kids for All

Cautionary Statement

This information material is provided for understanding Kidswell Bio Corporation (“KWB”),
not for soliciting investment in KWB shares.

Information provided in this material may contain so-called “forward-looking statements.”
These statements are based on current expectations, forecasts, and assumptions that are
subject to risks and uncertainties, which could cause actual outcomes and results to differ
materially from these statements. Risks and uncertainties include success rate of R&D
projects, new regulations and rules, relations with partners in the future, etc.

This material includes information on pharmaceutical products and regenerative medicine (orrelated products), etc., which is being developed or launched. However, this is not intended
to promote our products or provide medical advice.

Copyright © 2023 Kidswell Bio Corporation All Rights Reserved.

19

Appendix

20

Biography
Yasuyuki Mitani, PhD
CEO, S-Quatre Corporation (scheduled on Apr 1, 2024)
1996

BS, Pharmaceutical Science, Kyoto University. Obtained a license for pharmacist.

1998

MS, Biophysics, Graduate School of Pharmaceutical Sciences, Kyoto University.
Joined Astellas Pharma (f/k/a Fujisawa Pharmaceutical). Mainly engaged in the drug discovery research forneurodegenerative and muscle diseases until 2019.

2013

PhD, Neuropharmacology, Graduate School of Pharmaceutical Sciences, The University of Tokyo.

2015

Postdoctoral Research Fellow, Cincinnati Children's Hospital Medical Center (US). Engaged in the research of stem
cell transplantation for pediatric diseases.

2017

Visiting Scientist, Buck Institute for Research on Aging (US). Engaged in the research of cell aging.

2019

Joined Kidwell Bio Corporation (f/k/a Gene Techno Science Co., Ltd.) as Manager in Research & Development Dept.
Initiated and led multiple collaborative researches with academia to build pipelines of SHED (Stem cells from Human
Exfoliated Deciduous teeth) .

2020

Deputy Director, Business Development Dept.

2021

Director, Business Development Dept. and Regenerative Medicine Unit Leader, Product & Portfolio Strategy.

2023

Chief Scientific Officer.

Copyright © 2024 Kidswell Bio Corporation All Rights Reserved.

21