Eisai Co., Ltd. (“the Company”) and its affiliates (collectively referred to as “the Group”)
Fiscal year ended March 31, 2022
Notes to Consolidated financial statements (Income taxes)(1) Income taxes
Breakdown of income taxes(Unit: Millions of Yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2021

Income taxes – current (Note 1)

13,856

12,069

Income taxes – deferred(5,115)(2,079)

8,741

9,990

Total
(Note 1)

Movements of liabilities due to valuation of uncertain tax positions are included in “income taxes – current” ineach fiscal year.

Reconciliation between the statutory tax rate and the effective income tax rate
The effective tax rate represents ratio of income taxes to profit before income taxes. The Company has been mainly
imposed corporate income taxes, resident taxes and business taxes, then the statutory tax rate based on these items
is 30.5%. Overseas subsidiaries have been imposed corporate income taxes in each jurisdiction.
(Unit: %)Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2021

Statutory tax rate

30.5

30.5

Tax credit for experiment and research expenses

(8.0)

(5.6)

Tax rate differences in subsidiaries

(5.9)

(4.8)

Tax credit

(1.2)

(0.9)

Incomes taxes in the past

0.6

(2.1)

Uncertain tax positions

0.4

0.5

Expenses not permanently deductible for income
tax purposes, such as entertainment expenses

0.2

1.1

Valuation allowances

(0.1)

(0.5)

Others(0.5)

0.9

Effective tax rate

16.1

19.1

-1-(2) Deferred tax assets and deferred tax liabilities
Breakdown of deferred tax assets and deferred tax liabilities
For the fiscal year ended March 31, 2022
(Unit: Millions of Yen)
As ofApril 1, 2021

Recognizedthrough P&L

Recognizedthrough OCI

As ofMarch 31, 2022

Deferred tax assets
Entrusted R&D expenses

16,334(356)－

15,978

Tax credit for experiment and researchexpenses

28,69689－

28,784Retirement benefit liabilities

3,187

203

476

3,866

Depreciation and amortization

2,718(217)

－

2,501

Accrued bonuses

3,093

1,647

－

4,740

Deferred charges for tax purposes

9,818(338)

－

9,480

Unrealized gain on inventories

13,071

3,360－

16,431Net operating loss carryforward

914

1,548－

2,462

Others17,408311(30)17,689Sub-total

95,2406,246

446

101,932

Intangible assets

19,054(4,938)－

14,116

Depreciation and amortization

1,433

3,467－

4,900

Financial assets measured at fair value
through OCI

6,551

－

(732)

5,819

Others1,150(192)－959

Sub-total

28,187(1,662)(732)

25,79367,052

7,908

1,178

76,138Deferred tax liabilities

Balance (Note 1)(Note 1)The difference between the balance recognized through P&L and income taxes – deferred is mainly due tomovements of liabilities due to valuation of uncertain tax positions which are offset with deferred tax assets inconsolidated statement of financial position and included in income taxes – current in consolidated statement ofincome, and movements of foreign currencies.

-2-For the fiscal year ended March 31, 2021
(Unit: Millions of Yen)
As ofApril 1, 2020

Recognizedthrough P&L

Recognizedthrough OCI

As ofMarch 31, 2021

Deferred tax assets
Entrusted R&D expenses

13,9742,360－16,334

27,323

1,372－28,696Retirement benefit liabilities

2,300

2,288

(1,401)

3,187

Depreciation and amortization

2,079

639

－

2,718

Accrued bonuses

3,932

(839)

－

3,093

Deferred charges for tax purposes

9,470

349

－

9,818

Unrealized gain on inventories

15,664(2,593)－

13,071

Net operating loss carryforward

1,216

(301)

－

914

Others

18,637(1,175)(54)

17,408Sub-total

94,5952,100(1,455)

95,240Intangible assets

18,95796－

19,054

Depreciation and amortization

2,622(1,189)

－

1,433

5,585

－

965

6,551

Others1,001

149－1,150

Sub-total

28,165(943)

965

28,18766,4303,043(2,420)67,052

Tax credit for experiment and researchexpenses

Deferred tax liabilities

Financial assets measured at fair value
through OCIBalance (Note 1)(Note 1)The difference between the balance recognized through P&L and income taxes – deferred is mainly due tomovements of liabilities due to valuation of uncertain tax positions which are offset with deferred tax assets inconsolidated statement of financial position and included in income taxes – current in consolidated statement ofincome, and movements of foreign currencies.

Deferred tax assets and deferred tax liabilities(Unit: Millions of Yen)
As of March 31, 2022

As of March 31, 2021

Deferred tax assets

76,622

67,563

Deferred tax liabilities

483

511

76,13867,052

Balance-3-(3) Deferred tax assets not recognized in the consolidated financial statements
The Group does not recognize deferred tax assets when it is not likely to arise sufficient taxable income in the future
period to utilize the benefit.
Breakdown of deferred tax assets not recognized in the consolidated financial statements(Unit: Millions of Yen)
As of March 31, 2022
Deductible temporary difference

3,765

3,910

Net operating loss carryforward (Note 1)

12,223

10,752

Tax credit carryforward (Note 2)

5,703

5,304

21,691

19,965

Total(Note 1)

As of March 31, 2021

Breakdown by timing of expiration of net operating loss carryforward on which deferred tax assets are notrecognized in the consolidated statements(Unit: Millions of Yen)
As of March 31, 2022

Within one year

As of March 31, 2021－－

Over one year, within five years

1,272677

Over five years

10,951

10,074

12,223

10,752

Total(Note 2)

Breakdown by timing of expiration of tax credit carryforward on which deferred tax assets are not recognized in
the consolidated statements(Unit: Millions of Yen)
As of March 31, 2022

As of March 31, 2021

Within one year

145

90

Over one year, within five years

335

46

5,223

5,168

5,703

5,304

Over five years
Total(4) Temporary differences regarding investments in subsidiaries on which deferred tax liabilities are not recognized in
the consolidated statement
For the fiscal year ended March 31, 2022, the amount of temporary differences regarding investments in subsidiaries
on which deferred tax liabilities are not recognized in the consolidated statements is ¥435,779 million (¥332,529 million
for the fiscal year ended March 31, 2021). The Group does not recognize deferred tax liabilities on the temporary
differences when the Company can control the timing of dissolution of the temporary differences and it is likely not tobe dissolved within foreseeable period.

-4-