Summary of Financial Statements
for the First Nine Months of Fiscal Year Ending December 31, 2022
[Japanese GAAP] (Consolidated)
November 8, 2022
Company Name

SymBio Pharmaceuticals Limited

Listing: Tokyo Stock Exchange

Securities Code4582

URL: https://www.symbiopharma.com/

Representative

Representative Director,
President and Chief Executive Officer

Fuminori Yoshida

Contact Person

Corporate Officer andChief Financial Officer

Takaaki Fukushima

TEL +81-3-5472-1125

Date of Dividend
Payment (plan)－

Scheduled Date to File Quarterly November 9, 2022
ReportSupplementary materials for the quarterly financial statements:

Yes ・ No

Holding of quarterly earnings performance review:

Yes ・ No

(Amounts of less than one million yen are rounded down.)
1. Business Results for the First Nine Months of FY 2022 (January 1, 2022 to September 30, 2022)(1) Consolidated Operating Results (cumulative)(Percentages indicate year-on-year changes.)
Net Sales
Q3 FY 2022
Q3 FY 2021

Operating Profit

Profit attributable toowners of parent

Ordinary Profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

7,355
－

－
－

1,588
－

－
－

1,843
－

－
－

1,555
－

－
－

(Note) Comprehensive income:

Q3 FY 2022
Q3 FY 2021

Earnings per Share

1,555 million yen ( -%)－ million yen ( -%)Diluted Earnings per Share
Yen

Yen

Q3 FY 2022
40.00
39.43
－
Q3 FY 2021－
(Note) The Company began preparing consolidated quarterly financial statements from Q1 FY 2022 with the start of full-fledged
operations at SymBio Pharma USA. As a result, figures for Q3 FY 2021 as well as year-on-year comparisons against Q3 FY 2021 havenot been provided.
(2) Consolidated Financial Position
Total Assets
Q3 FY 2022 (as of September 30, 2022)
FY 2021 (as of December 31, 2021)(Reference) Shareholders’ equity:

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

10,618
－

8,854
－

79.6
－

Q3 FY 2022 (as of September 30, 2022)
8,447 million yen
FY 2021 (as of December 31, 2021)－ million yen(Note) The Company began preparing consolidated quarterly financial statements from Q1 FY 2022, and hence figures for FY
2021 have not been provided.

2. Dividends
Annual Dividend per Share
1st QuarterYen

2nd Quarter
Yen

3rd Quarter
Yen

Fiscal Year End
Yen

－
－

0.00
0.00

－
－

0.00

0.00

0.00

0.00

FY 2021
FY 2022
FY 2022 (Forecast)

Full Year
Yen(Note) Revision of dividend forecasts most recently announced: Yes ・ No
3. Earnings Forecasts for FY 2022 (January 1, 2022 to December 31, 2022)(Percentages indicate year-on-year changes.)
Net Sales
Millions of yen

Full Year

10,003Operating Profit% Millions of yen% Millions of yen

－

－

2,000

Profit attributable toowners of parent

Ordinary Profit
2,300

Earnings per Share% Millions of yen

%

Yen

1,650

－

42.42

－

(Note) Revision of earnings forecasts most recently announced: Yes ・ No
Notes:(1) Changes in significant subsidiaries during the period:(Transfer of specified subsidiary accompanying a change in the scope of consolidation)
New: SymBio Pharma USA, Inc.
Removed: None

Yes ・ No

(2) Application of special accounting treatment in preparing the quarterly financial statements: Yes ・ No
(3) Changes in accounting policies, changes in accounting estimates and restatements after error corrections(a) Changes in accounting policies due to revision of accounting standards:

Yes ・ No(b) Changes in accounting policies due to other reasons:Yes ・ No(c) Changes in accounting estimates:

Yes ・ No(d) Restatements after error corrections:

Yes ・ No

(4) Number of issued shares (common stock)(i) Total number of issued shares at the end of

Q3 FY 2022

39,576,006 shares

FY 202138,457,206 shares(ii) Total number of treasury shares at the endof the period

Q3 FY 2022

84,743 shares

FY 202182,618 shares(iii) Average number of shares during theperiod (cumulative)

Q3 FY 2022

38,893,556 sharesthe period (including treasury shares)

Q3 FY 2021

38,293,510 shares* Summary of the quarterly financial statements is not subject to quarterly reviews by certified public accountants or accounting
corporations.
* Explanation regarding the appropriate use of earnings forecasts and other matters
All forecasts presented in this document, including earnings forecasts, are based on the information currently available to theCompany and assumptions judged to be reasonable. Actual results may differ substantially from these forecasts due to various
factors. Regarding the assumptions on which the Company’s earnings forecasts are based and their usage, please refer to “1.
Qualitative Information on Quarterly Financial Results (3) Explanation of consolidated earnings forecast and other forwardlooking information” on Page 5 of the attachment.

Index of the attachment
1. Qualitative Information on Quarterly Financial Results ........................................................................................................................ 2(1) Business results ................................................................................................................................................................................ 2(2) Explanation of financial position...................................................................................................................................................... 5(3) Explanation of earnings forecasts and other forward-looking information ...................................................................................... 5
2. Quarterly Consolidated Financial Statements and Primary Notes ......................................................................................................... 6(1) Quarterly consolidated balance sheet ............................................................................................................................................... 6(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income ............................................... 8
Quarterly consolidated statement of income for the first nine months of FY 2022 ............................................................................ 8
Quarterly consolidated statement of comprehensive income for the first nine months of FY 2022 ................................................... 9(3) Notes to quarterly consolidated financial statements ..................................................................................................................... 10(Notes to going concern assumptions) ............................................................................................................................................. 10(Notes in case of significant changes to shareholders’ equity) ......................................................................................................... 10(Accounting policy changes) ........................................................................................................................................................... 10(Additional information) .................................................................................................................................................................. 11(Significant subsequent events) ....................................................................................................................................................... 12―1―

1. Qualitative Information on Quarterly Financial Results(1) Business results
From the first three months of FY 2022, the Company began preparing consolidated quarterly financial statements in connection
with the commencement of full-fledged operations at its wholly-owned U.S.-based subsidiary, SymBio Pharma USA, Inc. (President:
Carolyn Yanavich), which serves as a strategic base for our global operations as a specialty pharmaceutical company. As reference,
we have provided year-on-year comparisons with the non-consolidated quarterly financial statements in the same period last year,
since there have been no substantial changes in our business composition.
(i) Business results for the period under review
In December 2020, the Company began selling TREAKISYM® (generic name: bendamustine hydrochloride or bendamustinehydrochloride hydrate) through its own sales organization. This was a critical step of the Company to attain profitability in FY 2021,
which was a top priority for the fiscal year.
The Company has assigned medical representatives nationwide to establish a highly productive salesforce that can identify local
needs and plan detailed proposals. We also deployed hematology experts in each region of operation to provide information in amore scientific manner. To achieve nationwide distribution, we have entered into distribution agreements with Suzuken Co., Ltd.
and Toho Pharmaceutical Co., Ltd. with both companies as exclusive distributors. We are also working with S.D. Collabo Co., Ltd.
and have established two logistics centers, one in Eastern Japan and the other in Western Japan.
In February 2022, the Company obtained approval for a partial change to the marketing authorization of the ready-to-dilute (RTD)
liquid formulation of TREAKISYM®, which was launched in January 2021, to add rapid infusion (RI) administration. Compared to
the freeze-dried (FD) formulation, the RTD formulation of TREAKISYM® reduces the time required for the complicated dissolution
process. RI administration further reduces the infusion time to 10 minutes, relieving the burden on both patients and healthcare
providers. The reduction in infusion volume lowers the volume of saline solution and accordingly the amount of salt (sodium
chloride) used.
With the cooperation of medical institutions, the switch from the FD to RTD formulation of TREAKISYM® is near completion.
In addition, conversion to the RI administration proceeded smoothly, with over 94% of medical institutions confirming their intention
to switch to RI administration as of the end of September 2022. As a quality assurance measure, we established a system to ensure astable supply of the RTD formulation of TREAKISYM®.
As a result, net sales totaled 7,355,507 thousand yen (+32.5% year on year). Despite sales activities being constrained by delays
in treatment and continued restrictions on facility visits due to the spread of COVID-19, net sales rose due to the March 2021 approval
for the use of TREAKISYM® in the bendamustine-rituximab (BR) therapy and in polatuzumab vedotin plus bendamustine-rituximab(Pola+BR) therapy to treat recurrent/refractory diffuse large B-cell lymphoma (r/r DLBCL), as well as the NHI price listing of Chugai
Pharmaceutical’s polatuzumab vedotin in May 2021.
Selling, general and administrative expenses totaled 3,877,749 thousand yen (+7.1% year on year). This amount includes researchand development expenses of 1,563,518 thousand yen (+21.6% year on year).
As a result, operating profit was 1,588,856 thousand yen (versus 424,238 thousand yen in the same period of FY 2021) andordinary profit was 1,843,421 thousand yen (versus 414,440 thousand yen in the same period of FY 2021). Profit attributable toowners of parent amounted to 1,555,746 thousand yen (versus 324,855 thousand yen in the same period of FY 2021). As cumulative
total sales of the RTD formulation of TREAKISYM® reached 11,000 million yen in the first nine months of FY 2022, the Company
booked 550 million yen in sales milestone payments to Eagle Pharmaceuticals, Inc. (head office: New Jersey, U.S.; hereinafter“Eagle”) under cost of sales.
Segment information has been omitted since the SymBio Group operates within a single segment, which includes the research anddevelopment, manufacturing, and marketing of pharmaceutical drugs and other related activities.
(ii) Research and development activities
During the first nine months of FY 2022, we conducted the following research and development activities in each of ourdevelopment pipelines.
(a) Anticancer agents: SyB L-0501 (FD formulation), SyB L-1701 (RTD formulation), and SyB L-1702 (RI administration)(generic name: bendamustine hydrochloride or bendamustine hydrochloride hydrate, trade name: TREAKISYM®)―2―

In March 2021, the Company obtained approval for use of the FD formulation of TREAKISYM® in the BR and Pola+BR
therapies to treat r/r DLBCL in addition to the already approved indications. After approval, the FD formulation of TREAKISYM®
immediately became available for use in both therapies.
In January 2021, the Company commenced sales of the RTD formulation of TREAKISYM® in-licensed from Eagle, having
obtained marketing approval in September 2020. In April 2021, the Company obtained approval for a partial change to themarketing approval of the RTD formulation for its use in the BR and Pola+BR therapies for the treatment of r/r DLBCL. For the
RI administration, the Company completed clinical studies on safety and filed a partial change application in May 2021. The
application was approved in February 2022, enabling the use of RI injection for all approved indications of the RTD formulation.
The Company will actively conduct further research on TREAKISYM®, such as ongoing clinical research with Saitama Medical
University and joint research with Kyoto University, to explore new possibilities of the drug.
(b) Anticancer agents: SyB L-1101 (intravenous formulation) and SyB C-1101 (oral formulation) (generic name: rigosertib
sodium)Onconova Therapeutics, Inc., the drug’s licensor, announced in August 2020 that INSPIRE, the pivotal Phase 3 study assessing
the efficacy and safety of IV rigosertib in higher-risk MDS (HR-MDS) patients comparing to physician’s choice of treatment, did
not meet its primary endpoint. The Company is in charge of clinical development in Japan and has been in discussion with
Onconova regarding the future development of rigosertib.
For rigosertib and TREAKISYM®, the Company is searching for new indications as well as new applications for the drugs usedin combination with each other or with other existing drugs, through joint research and the offering of academia-industry
collaborative courses with the University of Tokyo.
(c) Antiviral drug: SyB V-1901 (generic name: brincidofovir [BCV])In the development of the intravenous and oral formulations of antiviral drug brincidofovir (SyB V-1901; hereinafter “BCV IV”
and “BCV Oral”), for which a global rollout is planned, the Company has been carrying out joint research with top research
institutions of each specialized field in Japan and overseas in light of the drugs’ broad effectiveness against dsDNA viruses. We
will consider and carry out global clinical trials based on the scientific findings of this research. Clinical trials conducted in the
U.S. and Europe by Chimerix Inc. (head office: North Carolina, U.S.) have demonstrated that BCV Oral has wide-ranging antiviraleffects against a variety of dsDNA viruses. BCV IV is expected to be effective and safe for the prevention and treatment of many
dsDNA virus infections, including adenovirus (AdV) infections after hematopoietic stem cell transplantation. In June 2021,
Chimerix obtained approval from the U.S. Food and Drug Administration (FDA) for BCV Oral as a medical countermeasure forsmallpox.
Based on the review by the Global Advisory Board held in February 2020, the Company has decided to prioritize the global
development of BCV IV primarily in Japan, the U.S., and Europe, targeting disseminated AdV infections occurring after
hematopoietic stem cell transplantation, a niche area with a high unmet medical need. In March 2021, the Company filed an
Investigational New Drug (IND) application with the FDA to conduct a Phase II clinical trial primarily in pediatric patients sufferingfrom AdV infections (also including adults). This development program was granted Fast Track designation by the FDA in April
2021, and the investigational drug was administered to the first patient (first patient in or FPI) in August 2021.
BK virus (BKV) infection after kidney transplantation is a disease with serious consequences for the recipient, the donor, themedical practitioner, and the society, due to the risk of impaired renal function and loss of the transplanted kidney (graft loss). In
efforts to speed up resolution of this problem, the Company submitted a clinical trial notification for a global Phase II study inpatients infected with BKV after kidney transplantation to the Pharmaceuticals and Medical Devices Agency (PMDA) of Japan in
May 2022 and filed another notification with the Therapeutic Goods Administration (TGA) of Australia in August 2022. The
Company is also preparing to conduct clinical trials in South Korea.
The Company is also looking to develop BCV to treat multiple sclerosis, an intractable disease that has recently been proven to
be associated with Epstein-Barr virus (EBV). In August 2022, the Company entered into a collaboration agreement with the
National Institute of Neurological Disorders and Stroke (NINDS), part of the National Institutes of Health (NIH) in the U.S., forthe transfer of materials for evaluation of BCV’s potential antiviral effect on EBV.
In addition to having its strong antiviral effect, BCV also is expected to have an antitumor effect, and the Company is exploringnew indications such as EBV-positive lymphoma, refractory brain tumors, and other cancers via research collaborations with the―3―National Cancer Centre Singapore (NCCS) and University of California San Francisco (UCSF) Brain Tumor Center. In March
2022, the Company also commenced research in collaboration with Brown University in the U.S. to investigate the anti-tumor
effects of BCV against glioblastoma (GBM) associated with cytomegalovirus (CMV) infections.
Through the accumulation of clinical trial data, the Company will examine the efficacy of BCV in humans against various
dsDNA virus infections and expand target indications to include multiviral infections, with the aim of enlarging the target market
and maximizing the business value of BCV.
In September 2022, Chimerix announced that it has completed the closing of the sale of BCV to Emergent BioSolutions Inc.
(head office: Maryland, U.S.). The Company’s exclusive worldwide development, manufacturing, and marketing rights to BCV
for all indications except orthopoxvirus infections (including smallpox and monkeypox) will not be affected.
(iii) Business outside JapanIn April 2022, the Company’s U.S.-based wholly-owned subsidiary, SymBio Pharma USA, Inc. appointed Dr. Carolyn Yanavich
as President, Chief Operating Officer, and Chief Development Officer, to further expand the global development structure. Dr.
Yanavich had been Vice President and Head of Project Management and Clinical Operations at SymBio Pharma USA since October
2021. We expect her to spearhead and accelerate our global development of brincidofovir, with SymBio Pharma USA serving as adriving force behind the international clinical trials.
(iv) Licensing of new drug candidates
SymBio is moving ahead with global development of brincidofovir, an antiviral drug in-licensed in September 2019. At the sametime, the Company continues to evaluate new drug candidates for potential in-licensing. Through these efforts, the Company aims
to create medium- to long-term business value as a profitable biopharmaceutical company with growth potential.

―4―(2) Explanation of financial position
Total consolidated assets as of September 30, 2022 stood at 10,618,034 thousand yen. Current assets totaled 9,095,898 thousand
yen, mainly consisting of 6,133,077 thousand yen in cash and deposits, 1,862,011 thousand yen in accounts receivable-trade, 222,111
thousand yen in merchandise and finished goods, and 215,859 thousand yen in semi-finished goods. Non-current assets amounted to1,522,136 thousand yen, mainly consisting of 1,132,611 thousand yen in deferred tax assets and 231,513 thousand yen in software.
Total liabilities stood at 1,763,758 thousand yen. Current liabilities totaled 1,760,620 thousand yen, mainly consisting of 1,267,863
thousand yen in accounts payable-other. Non-current liabilities amounted to 3,138 thousand yen, consisting of 3,138 thousand yen in
liabilities for retirement benefits.
Total net assets stood at 8,854,275 thousand yen. This mainly breaks down as 17,536,786 thousand yen in capital stock, 17,511,685
thousand yen in capital surplus, and 406,991 thousand yen in share acquisition rights.
As a result, the equity ratio was 79.6%.

(3) Explanation of earnings forecasts and other forward-looking information
Net Sales of 10,003 million yen (+21.2% year over year) is unchanged compared to the forecast of August 4, 2022. Operating profit
is expected to be 2,000 million yen (+96.9% year on year), an increase of 230 million yen compared to the 1,770 million yen announced
on August 4, 2022, primarily due to reduced SG&A expense while the Company continues to prioritize global development of BCV.
Ordinary profit is expected to be 2,300 million yen (+129.7% year on year), an increase of 550 million yen from the 1,750 million yen
announced on August 4, 2022. The increase in ordinary profit is primarily due to foreign exchange gains on foreign currency assets.
Profit attributable to owners of parent has also increased to 1,650 million yen, an increase of 170 million yen from the 1,480 million
yen announced on August 4, 2022.
In February 2022, the Ministry of Health, Labour and Welfare approved the marketing of generic drugs with the RTD formulationof TREAKISYM® as the brand name drug. However, we believe this approval may infringe the patents held by Eagle, the drug’s
licensor, and our exclusive rights to use the patents for this product. We are in discussions with Eagle and notified in writing the four
companies that have obtained marketing approvals for generic drugs of RTD formulation regarding our concerns about infringementof our patent rights and demanded that they take appropriate measures. Only one company out of the four has listed its generic productin the NHI drug price list. The Company will take legal measures against any infringement of our patent rights.

―5―

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly consolidated balance sheet(Unit: thousands of yen)
Q3 FY 2022
(as of September 30, 2022)
AssetsCurrent assets
6,133,077

Cash and deposits
Accounts receivable–trade

1,862,011
222,111Merchandise and finished goods
Semi-finished goods

215,859
228,810Prepaid expenses
Other

434,029
9,095,898

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

41,745Tools, furniture and fixtures, net

31,232

Total property, plant and equipment

72,978Intangible assets
Software231,513

Total intangible assets

231,513

Investments and other assets
Deferred tax assets
Leasehold and guarantee deposits

1,132,611

Total investments and other assets

1,217,644

85,033

Total non-current assets

1,522,136

Total assets

10,618,034

Liabilities
Current liabilities
54,642

Accounts payable–trade
Accounts payable–other

1,267,863
195,731

Income taxes payable
Provision for product changeover

16,331226,052

Other
Total current liabilities

1,760,620

Non-current liabilities
3,138

Liabilities for retirement benefits
Total non-current liabilities

3,138

Total liabilities

1,763,758―6―

(Unit: thousands of yen)
Q3 FY 2022
(as of September 30, 2022)
Net assets
Shareholders’ equity
17,536,786

Share capital
Capital surplus

17,511,685(26,512,978)

Retained earnings
Treasury shares(87,788)8,447,705

Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment(421)

Total accumulated other comprehensive income(421)

Share acquisition rights

406,991

Total net assets

8,854,275
10,618,034

Total liabilities and net assets―7―

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income for the first nine months of FY 2022

Cost of sales(Unit: thousands of yen)
Q3 FY 2022
(from January 1, 2022
to September 30, 2022)
7,355,507
1,888,901

Gross profit

5,466,606

Selling, general and administrative expenses

3,877,749

Operating profit (loss)

1,588,856

Net sales

Non-operating income
Interest income
Foreign exchange gains

95
345,287

Other

2,925
348,309

Total non-operating income
Non-operating expenses

47,590Commission expenses
Share issuance costs
Other

45,617536

Total non-operating expenses

93,744

Ordinary profit

1,843,421

Extraordinary income
Gain on reversal of share acquisition rights

106,401

Total extraordinary income

106,401
1,949,823

Profit before income taxes
Income taxes - current
Income taxes - deferred

250,928
143,147

Total income taxes

394,076

Profit1,555,746

Profit attributable to non-controlling interests－

Profit attributable to owners of parent

1,555,746―8―

Quarterly consolidated statement of comprehensive income for the first nine months of FY 2022

Profit(Unit: thousands of yen)
Q3 FY 2022
(from January 1, 2022
to September 30, 2022)
1,555,746

Accumulated other comprehensive income
Foreign currency translation adjustment(421)

Total other comprehensive income(421)
1,555,325

Comprehensive income
Comprehensive income attributable to1,555,325

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－―9―(3) Notes to quarterly consolidated financial statements(Notes to going concern assumptions)None to be reported.
(Notes in case of significant changes to shareholders’ equity)
In the first nine months of FY 2022, the Company issued new shares due to the exercise of some of share acquisition rights
pertaining to the 33rd, 36th, 38th, 41st, 43rd, 44th, 48th, and 49th warrants. As a result, share capital and capital surplus eachincreased by 48,158 thousand yen.
Further, the Company received payments from CVI Investments, Inc. for the issue of new shares through third party allotment onJune 1, 2022, which resulted in an increase of 331,000 thousand yen each in share capital and capital surplus.
As a result, as of September 30, 2022, consolidated share capital was 17,536,786 thousand yen, and capital surplus was 17,511,685
thousand yen.
(Accounting policy changes)(Application of Accounting Standard for Revenue Recognition)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29; March 31, 2020;
hereinafter “Revenue Recognition Standard”) from the beginning of the first three months of FY 2022. As a result of the applicationof this standard, revenue will be recognized in the amount expected to be received in exchange for the promised goods or services
at the time control of the promised goods or services is transferred to the customer.
Under the previous accounting standard, for transactions where the total amount of consideration the Company is entitled to inexchange for the transfer of promised goods or services, i.e., the transaction price, is likely to be reduced after a contract is signedwith the customer, the Company revised the transaction price once the amount to be reduced was fixed. However, under the new
accounting standard, the Company makes a reasonable estimate of the variable amount and subtracts it from the transaction price atthe time the goods or services are transferred to the customer. Further, under the previous accounting standard, the Company
accounted for expected sales returns by recording provisions for sales returns in the amount equivalent to gross profit; however, in
accordance with the provisions regarding variable consideration, the Company no longer recognizes revenue at the time of sale andrecords refund liabilities as “other” under the current liabilities section of the balance sheet.
The Company has followed the transitional treatment prescribed in the provision of Paragraph 84 of the Revenue Recognition
Standard, and has applied the new accounting standard from the beginning balance of retained earnings for the first three months of
FY 2022, whereby the cumulative effect of retrospective application of the new accounting standard prior to the beginning of thefirst three months of FY 2022 is added to or deducted from the beginning balance of retained earnings.
As a result, during the first nine months of FY 2022, net sales increased by 63,132 thousand yen, operating profit and ordinary
profit increased by 63,132 thousand yen, respectively, and profit before income taxes increased by 63,132 thousand yen. In addition,
the balance of retained earnings at the beginning of the period decreased by 92,822 thousand yen.
In accordance with the transitional treatment prescribed by the “Accounting Standard for Quarterly Financial Reporting” (ASBJ
Statement No. 12), the Company has not presented information that breaks down revenue from contracts with customers during thefirst nine months of FY 2021.
(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30; July 4, 2019;
hereinafter “Fair Value Measurement Standard”) from the beginning of the first three months of FY 2022.
In applying the Fair Value Measurement Standard, the Company has followed the transitional treatment prescribed in the provisionof Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments”(ASBJ Statement No. 10; July 4, 2019), and will apply the new accounting standard prescribed by the Fair Value Measurement
Standard, prospectively.
The adoption of this accounting standard has no effect on the quarterly consolidated financial statements.

―10―(Additional information)(Accounting estimates regarding the impact of the COVID-19 pandemic)
No significant change has been made to the accounting estimates regarding the impact of the COVID-19 pandemic andassumptions underlying the estimates for the first six months of FY 2022 from those reported (under “Additional information”) inthe Annual Securities Report for the previous fiscal year.
(Basis of presenting quarterly consolidated financial statements)
SymBio Group Company began preparing quarterly consolidated financial statements in the first three months of FY 2022. The
following is a summary of the significant matters that form the basis for the preparation of the quarterly consolidated financial
statements.
1. Scope of consolidation
Number of consolidated subsidiaries:
Name of consolidated subsidiary:

1
SymBio Pharma USA, Inc.

2. Application of equity method
None
3. Fiscal year of consolidated subsidiaries
The quarter-end date of consolidated subsidiaries is the same as the consolidated quarter-end date.
4. Matters related to accounting policies(1) Valuation rules and methods for assets
i. Marketable and investment securities
Other marketable and investment securities
Securities other than those without market value
Stated at fair value (unrealized gains and losses are accounted for as a component of net assets, with the cost of securities
sold calculated according to the moving-average method).
Securities without market value
Stated at cost determined by the moving average method.
ii. Derivatives
Stated at fair value.
iii. Inventories
Merchandise and finished goods are stated at cost determined by the first-in, first-out method, and semi-finished goods arestated at cost determined by the weighted average method (the amount stated in the balance sheet is calculated by writing
down the book value based on a decline in profitability).
Inventory items are classified into separate categories to keep detailed track of inventory movements and perform proper
valuation.
(2) Depreciation method for depreciable assets
i. Property, plant and equipment (excluding lease assets)
Determined by the straight-line method.
The useful life of principal assets is as follows.
Building
3 to 18 years
Tools, furniture and fixtures
4 to 20 years
ii. Intangible assets (excluding lease assets)
Determined by the straight-line method.
Software for internal use is amortized over the estimated useful life (5 years).
iii. Lease assets
The straight-line method is used, where the lease period is deemed as the useful life of the asset and the residual value isset as zero.
(3) Accounting for deferred assets
Stock issuance costs and bond issuance costs are fully expensed when incurred.

―11―

(4) Standards for translation of assets and liabilities in foreign currencies into yen
Assets and liabilities in foreign currency are translated into yen at the spot exchange rate on the final day of the accounting term
and the foreign exchange gains and losses from the translations are recognized in the income statement.
(5) Basis for recording provisions
Provision for product changeover
The Company recognizes provisions for the estimated amount of expenses to be incurred in connection with the conversion
from FD to RTD formulations.
(6) Accounting for retirement benefits
The Company adopts a simplified method for the calculation of liabilities for retirement benefits and retirement benefit expenses,
whereby the amount payable at the end of the fiscal year for retirement benefits is deemed to be the retirement benefit obligation.
(7) Basis for recording revenues and expenses
The Company and its consolidated subsidiaries have adopted the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29; March 31, 2020) and “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30; March
26, 2021). As a result of the application of these standards, revenue will be recognized in the amount expected to be received in
exchange for the promised goods or services at the time control of the promised goods or services is transferred to the customer.
(Significant subsequent events)
None to be reported.

―12―