NON – CONFIDENTIAL

th30 Ordinary General Meetingof Shareholders

Sosei Group Corporation | 第30回定時株主総会
25 March 2020 | 2020年3月25日

Agenda1

1Opening Declaration

2

Report on number of voting rights

3

Audit Committee Report

4

FY2019 Results and Business Report5

Report on Audit Results

6

Resolution

7Q&A

8Vote1
開会宣言
Opening Declaration2

2
議決権個数のご報告
Report on the number ofvoting rights3

3
監査委員会の監査報告
Audit Committee Audit Report4

4
2019年12月期の事業報告
連結業績FY2019 Consolidated Results
Business Report5Summary Financial Highlights
12 months ended 31 December 20191Significantly improved financials in FY2019 – successful execution of corporate strategy

2

Cash Profit of ¥2,802m ($25.7m) vs. loss of ¥5,704m ($51.7m) in prior corresponding period1, due tostrong revenue growth and rigorous focus on costs

3

Net Profit before income taxes of ¥534m ($4.9m) and Net Profit of ¥1,432m ($13.1m), successfullyachieving our corporate goal of profitability in the Full Year

4Term loan facilities fully repaid. New ¥5bn ($45m) commitment line (undrawn) established withMizuho Bank provides financial flexibility for the future

5Group will continue to pursue profitability in 2020

Strategic focus on our core competencies in drug discovery and early-stage development
drove significant turnaround in financial performance
Note: 1 Proforma comparative period represents the 12 month period ended 31 December 2018 to aid comparability of the same corresponding 12 month period. The statutory comparativeperiod (9 month period ended 31 Dec 2018) is provided in the Appendix. USD:JPY FX rates used – 109.035 (FY2019) and 110.291 (FY2018)6

Consolidated Income Statement

Significant upfront/milestone payments and prudent cost management delivers profitability
JPY million

USD million

Revenue by Type12m ended
12m ended
131 Dec 2019 31 Dec 2018

12m ended
12m ended
131 Dec 2019 31 Dec 2018

Revenue

9,726

3,550

89.2

32.2

Cash Cost of Sales

(851)

(492)

(7.8)

(4.5)

Cash R&D(3,937)(6,487)(36.1)(58.8)Cash G&A(2,164)(2,479)(19.8)(22.5)

28

204

0.2

1.9

Cash Profit

2,802(5,704)25.7(51.7)

Non-Cash Costs(2,418)(2,228)(22.2)(20.2)

Financing Costs

331(480)

3.0

(4.4)

Equity Accounted
Investments

(181)

(635)

(1.7)

(5.8)

Net Profit before Tax

534(9,046)

4.9(82.0)

Tax Expense898

2,1288.3

19.4

Net Profit

1,432(6,919)

13.1(62.7)

Other Cash Income

3%

25%10%15%

12m ended
31 Dec 2019

12m ended
31 Dec 20181

62%

74%
12m ended 31 Dec 19

12m ended 31 Dec 18

Milestone¥6,013m$55.1m

¥397m

$3.6m

Royalty¥2,406m$22.1m¥2,612m$23.7mProduct Sales

¥276m

$2.5m

––

Other

¥1,032m$9.5m¥541m$4.9m

Note: 1 Proforma comparative period represents the 12 month period ended 31 December 2018 to aid comparability of the same corresponding 12 month period. The statutorycomparative period (9 month period ended 31 Dec 2018) is provided in the Appendix. USD:JPY FX rates used – 109.035 (FY2019) and 110.291 (FY2018)711%

COVID-19 situation update

81

Events and guidance regarding the COVID-19 outbreak continue to change rapidly, and we aremonitoring the global situation closely.

2Our priority remains the health and safety of our employees, visitors and patients in our clinical trials.
We have been able to enact our contingency plans in Japan and the United Kingdom early and efficiently.

3

Where possible, our employees are working remotely or varying site working hours, while scientists
have optimized rotas.

4

Our operations are focused on business critical work and prioritizing key collaborations.

5

We are working closely with our outsource service providers to receive daily updates. Whilst our CRO
network is extensive and geographically diversified, delays in clinical development are inevitable in theindustry as a whole

6All scheduled and future Business Development meetings will be done virtually.

Unchanged FY2020 Financial Guidance (12m to 31-Dec-20)
Sustainable growth strategy to pursue profitability in 2020Guidance(Dec-20)

Cash R&D expenses

Cash G&A expenses¥4,200 to 4,700m¥1,800 to 2,300m

 Increase number of programs fully
funded by partners
 Extract savings from enhanced
procurement practices
 Invest for growth while maintaining
rigorous cost control

 New ERP investment to drive
efficiencies Group-wide andeliminate control issues
 Replace legacy IT systems
 Hire to strengthen capabilities incompliance and support functions

Investing for the future whilst maintaining a focus on costs and extracting efficiencies

9We achieved a lot in FY2019$15m milestone
Initiation of Phase 2
trials of I/O program
in solid tumors€40m collaboration
Creation of two assetcentric companies withMedicxi

SSTR5 agonist
First subject dosed inPhase 1 study of
HTL0030310$2.5m milestone
Submission of QVM149
MAA to the European
Medicines Agency$6m milestones (total)
Nomination of first twocandidates for clinicaladvancement

January 2019

February 2019

February 2019

May 2019

May / June 2019$26m UF/Near term
Multi-target researchand license agreement,
worth potential $1bn+$26m UF/Near term
Multi-target researchand dev. partnership,
worthpotential$1.2bn+$3m milestone
Nomination of new
GPCR disease target$5m milestone
Initiation of Phase 1
trails for first
nominated candidate$3m milestone
Nomination of third
candidate for clinicaladvancement

July 2019

August 2019

October 2019

December 2019

December 2019

Existing Partnership

In-house Program (to be partnered)

New Partnership
10Highly productive drug discovery engine generating next wave ofhigh-value, novel candidates to fuel partnering activity
Pre-Discovery /Discovery
Multi-target
Collaborations

Preclinicaldevelopment

Asset-centricCompanies

Immunology
GI / Inflammation
Neurology

11Phase 3

A2a ant. combo(s)Single target

M1 ag.

M1 ag1

Single target

M4 ag.

Oravi®

CXCR4 mAb

Single target

NorLevo®

CGRP ant.

mGlu5 NAM

GLP-1 ant.

SSTR5 ag.

Undisclosed

Immuno-oncology

Metabolic diseases

Solid tumors

Alzheimer’s

mCRPC

QVM149Marketed

A2a ant.

Alzheimer’s

Neurology

15+ programs ongoing

Phase 2

M1M4 dual ag.

Metabolic

Single-target
Collaborations

Phase 1

AsthmaDLB

Alzheimer’sUndisclosed

Neurology

Endocrine

GLP-2 ag.

Intestinal failure

1 Phase 2 trial of HTL0018318 for DLB in Japan has been withdrawn. The Group plans to resubmit a new clinical trial notification for HTL0018318 (or another novel M agonist) to the1
Japanese Pharmaceuticals and Medical Devices Agency (PMDA) in the future

Ultibro®
COPD

Seebri®
COPD

Mouth candidiasis

Emergency contraception

Quality, not just speed, is what provides an edge in drug discovery
Successful drug discovery is best measured by the number of drug candidates delivered
Path to Preclinical Candidate– Pharma Industry Standard
Drug Discovery

Path to Preclinical Candidate – Sosei Heptares

Preclinical

Drug Discovery

Pre-clinical

25<500Compounds

IND

Preclinical
Candidate

LAST 10 YEARSPre-Discovery>1,000Compounds

IND

Pre-Discovery

PCCs1

PreclinicalCandidate

7INDs

01

2~4 YEARS

345~2 YEARS

601
2–3 YEARS

234~2 YEARSOne of the most productive drug discoverers in the world for our size.
Implementing new tools in 2020 and beyond the further enhance our productivity
Source: Management estimates
Note: PCC is short-hand for Preclinical Candidate

12

CLINICALCANDIDATESIN THE LAST 7 YEARSStrategy leverages proprietary technology and core competencies
Extend technology/platform leadership
EXECUTE NEW
PARTNERSHIPS AND
PROGRESS EXISTINGPARTNERSHIPS

Generate high quality novel candidates
that are attractive partnering opportunities
Enhance focus on high value
collaboration or long term ventures

Executing new partnered programs and progressing existing programs is at the heart of what we do13

Extend technology/platform leadershipTechnology-led discovery engine has revolutionized GPCR-targeted discovery
NEW TECHNIQUE TO
IMAGE BIOMOLECULESEXPANDSCAPACITY TO
EXPLORE MOREGPCRs

CHESS?

CryoEMSTAR®
GPCRTECHNOLOGY

SaBRESMARTER DRUG DESIGN

14ADDING NEWTECHNOLOGIES, TOOLSAND CAPABILITIES IN 2020

AIDNA
EncodedLibraries

ACCELERATES AND
IMPROVESDRUGDISCOVERYACCELERATEDCOMPOUND SCREENING

Concentrating our efforts in small molecule discovery
Small molecules remain of great significance for the industry – and patients
Global Pharmaceutical Market Sales (2019)1,2Small molecules1
Other modalities

Small molecules
Other modalities# FDA Novel Drug Approvals

5948

4663%

63%
2017

63% of global pharmaceutical sales2 aregenerated from small molecules…
Source: EvaluatePharma; US Food and Drug Administration
Note: 1 Represents total conventional sales. 2 Excludes sales not classified by EvaluatePharma

1564%

69%

2018

2019

… and continue to represent the majority ofnew FDA drug approvals every year

Narrowing focus going forward on novel targets acrossimmunology and inflammation
GPCRTargets

44%

FUTURE

20%
50%

TherapeuticAreas30%

FUTURE
9%37%

56%

Neurology
Immunology / Inflammation

54%

Other

Significant untapped target opportunity.
Confidently going after “high hanging fruit”
Source: Management estimates

16

Rich source of exciting targets inimmunology and inflammation particularly

Generate high quality novel candidates attractive to partners
Our core competencies are drug discovery and early development
DRUG DISCOVERYEARLY DEVELOPMENTTECHNOLOGYDISCOVERYPRECLINICALHEALTHY
VOLUNTEERS

PATIENTSLATE STAGE DEVELOPMENTPH 2PH 3

APPROVALBIG BIOTECH / PHARMA PARTNER

2 – 3 YEARS

1 –2 YEARS

2 YEARS

Lower costs, lower risks, faster progression, favorable
growth trends, increasingly funded by partners

175+ YEARSMARKET

Targeting high value collaborations & long term ventures
Unique focus on lower cost, high value add programs

Approaches to drug discovery and development

Strategic focus on executing newprograms to be funded by partners

COST
Wholly-ownedPrimary goal is $500m+ deals withworld-leading pharma and biotech
Alternatively, seed novel candidates
into long term ventures with upside

Aiming to execute 2 to 3 new high value
partnerships and/or ventures with upside in 202018

High cost /High value

Fee-for-service

Partnered/ co-owned

Low cost /Low value

Low cost /high value

OUR
UNIQUE
FOCUS

VALUE

Steady state business model generating multiple value inflection points
4Programs
Programs

New programs every 2 years(to Lead Optimization stage)
$$

$

$

$

$

$

$

PARTNERPARTNERPARTNERPARTNERPROGRESSFURTHER2x
PCC1p.a.

Programs$Programs

Pool of programs
that can bepartnered
immediately
PCC = Preclinical Drug Candidate ready for testing per year

1915+
TODAY

$2 YEARS

Healthy
Volunteers
2 YEARS

PatientStudies

5
連結計算書類の監査結果報告
Report on Audit Results on theConsolidated Financial Statement
206決議事項
Matters to be Resolved

21

Proposal 1

Election of Six (6) Directors

SHINICHISHINICHITAMURATAMURATOMOHIROTOHYAMAKUNIAKI
KAGA

Chairman of the Board
Representative Executive Officer, Chairman, President and CEO
Chairman of the Nomination Committee
Member of the Compensation Committee

Executive Director
Chairman of the Audit Committee
Member of the Compensation Committee

Executive Director
Member of the Nomination Committee
Member of the Audit Committee

Note: Current positions and responsibilities at the Company are presented

22

RE-APPOINTEDRE-APPOINTED
EXTERNAL

RE-APPOINTED
EXTERNAL
INDEPENDENTProposal 1

Election of Six (6) Directors

SHINICHIDAVID
TAMURA
ROBLINNORIAKINAGAI

ROLF
SODERSTROM

Executive Director
Member of the Nomination Committee
Member of the Compensation Committee

Executive Director
Member of the Audit Committee

EXTERNAL
INDEPENDENTRE-APPOINTED
EXTERNAL
INDEPENDENT

Proposal to be elected as External Director
Proposed Member of the Audit Committee
Proposed Member of the Compensation Committee

Note: Current positions and responsibilities at the Company are presented

23

RE-APPOINTEDNEW APPOINTMENT
EXTERNAL
INDEPENDENT7
質疑応答
Q&A24

8採決Vote25