FY2023 Financial Results Presentation

May 16, 2024
Mochida Pharmaceutical Co., Ltd.

Disclaimer (1/2)
 This material is an English translation of the Financial Results Presentation for the Fiscal Year2023 to be issued on May 16, 2024 in Japanese, and the Japanese presentation is given priority
regarding content and interpretation.
 The information provided in this material contains some “forward-looking statements”. These
forward-looking statements are based on the judgments of the Company derived from theinformation available to us at this time, and include known and unknown risks and uncertainelements. Accordingly, the actual results may differ materially from these statements due to avariety of factors.
 These risks and uncertainties include general economic conditions in Japan and worldwide, suchas the general situation in the industry and markets, interest rates and currency exchange rate
fluctuations. The risks and uncertainties exist in forward-looking statements relating to productsin particular. These product-related risks and uncertainties include, but are not limited to,technological advancements, granting of patents to our competitors, completion of clinical trials,
claims or concerns relating to safety or efficacy of products, acquisition of approval fromregulatory authorities, reform of health insurance systems inside and outside Japan, trends
toward the containment of health care cost, government law and regulations that affect theCompany’s business inside and outside Japan, and issues pertaining to development of newproducts.
FY2023 Financial Results Presentation2

Disclaimer (2/2)
 Approved products contain risks relating to manufacturing and marketing which include, but not
are limited to, situations in which the Company may face deficiencies in manufacturing capacity
needed to meet demand, difficulties in securing the supplies of raw materials, and demand not
created in markets.
 We do not intend to, and assume no obligation to, update or modify any forward-looking
statements even if such updating or modification is desirable due to the emergence of new
information, future events or other reasons.
 The information contained in this material regarding pharmaceutical products (including thosewhich are being developed) is not intended to act as a promotion or advertisement, or to provide
medical advice.

FY2023 Financial Results Presentation

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Agenda• FY2023 Overview• FY2024 Forecast• Progress on the 22-24 Medium-Term Management Plan

FY2023 Financial Results Presentation

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FY2023 Overview

FY2023 Financial Results Presentation

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Business environment
 The ever off-year NHI drug price list revision in April 2023.


Decrease in drug prices(The drug price revision rate for all listed products was in the -8% range.) Increase in import prices of active pharmaceutical ingredientsand pharmaceutical formulations due to depreciation of the yen.

FY2023 Financial Results Presentation

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Summary of FY2023 (1/2)
 Consolidated Financial Results

102.8

103.2

Net sales declined
Net sales declined due to NHI drug price revisions anddeclining sales of long-listed products such as Lexapro®, which
offset the growth in sales of new drugs and new products.
Net sales
Operatingprofits

8.5

5.8

FY2022

FY2023

FY2023 Financial Results Presentation【New products】• Treprost® Inhalation Solution• Omvoh®
• Cortiment®
• Pegfilgrastim BS MOCHIDA
Operating profits declined
Operating profit declined due to a decrease in sales in thepharmaceutical business, decrease in gross profit due tohigher import prices of active pharmaceutical ingredientsand pharmaceutical formulations due to depreciation of theyen, and an increase in selling expenses due to the launchof new products.
7Summary of FY2023 (2/2)
 Progress in development pipeline
Ethical drug••

Filed: ACT-541468 (daridorexant)
Filed (Additional indication): Treprost® Inhalation Solution

Medical device•••

Filed: dMD-001
Initiation of therapeutic confirmatory study: dMD-003
Filed (510(k)): Nerve Cuff Business alliances••

The sales partnership agreement in Japan regarding ACT-541468 (daridorexant)
The sales partnership agreement in China regarding MND-21 (Epadel)

FY2023 Financial Results Presentation

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Consolidated operating results(Millions of yen)

FY2023 Forecasts

FY2022(Y o Y changes)

FY2023(Y o Y changes)

Net sales

103,261(-6.3％)

102,885(-0.4％)-375

104,000(0.7％)

Operating profit

8,507(-40.9％)

5,802(-31.8％)-2,7058,500(-0.1％)

8.2％

5.6％

-2.6 point

8.2％

Ordinary profit

9,085(-38.6％)

6,037(-33.5％)-3,0478,700(-4.2％)

Profit attributable toowners of parent

6,649(-37.1％)

4,547(-31.6％)-2,1016,300(-5.3％)

13,283

12,554-728

13,800

Ratio of operating
profit to net sales

Research anddevelopment expenses

FY2023 Financial Results Presentation

Y o Y value(announced on May 15, 2023)(Y o Y changes)

9Net sales by business(Millions of yen)

FY2023 Forecasts

FY2022(Y o Y changes)

FY2023(Y o Y changes)

103,261(-6.3％)

102,885(-0.4％)-375

104,000(0.7％)

Pharmaceuticals
business

97,340(-6.8％)

96,455(-0.9％)-885

97,700(0.3％)

Healthcare
business

5,920(3.3％)

6,430(8.6％)509

6,300(7.1％)

Net sales

FY2023 Financial Results Presentation

Y o Y value(announced on May 15, 2023)(Y o Y changes)

10Sales of major products (1/2)（Billions of yen）

FY2023
Products

FY2022Sales

YoYValueRatio■ New drugs
Treatment of ulcerative colitis

Lialda®

13.5

14.5

0.97％

Treatment for chronic constipation

Goofice®

6.9

7.7

0.8

12％

Treatment for chronic constipation

Movicol®

5.4

5.9

0.48％

Gout and hyperuricemia

Urece®

2.2

3.3

1.047％

Treatment for pulmonary arterialhypertension
Therapeutic agent for condyloma
acuminatum and actinic keratosis

Treprost®

1.6

2.3

0.7

45％

Beselna

1.1

1.1-0.0-2％(NHI price)

‐

1.4

1.4

‐

Cortiment®

-0.2

0.2

‐

Treatment of ulcerative colitis
Treatment of ulcerative colitis
FY2023 Financial Results Presentation

Omvoh®

11

Sales of major products (2/2)（Billions of yen）

FY2023
Products

FY2022Sales

YoY
ValueRatio■ Long-listed products
Drug for hyperlipidemia andarteriosclerosis obliterans

Epadel

7.1

7.4

0.24％

AntidepressantLexapro®

11.05.2-5.8-53％

Calcium channel blocker with along-acting hypotensive effectAnalgesic for chronic pain andpain after tooth extraction

Atelec®

2.6

2.3-0.3-13％

Tramcet®

2.9

2.2-0.6-23％

HeparinSodiumMOCHIDA

1.2

1.3

0.0

4％

Dinagest

1.8

1.1

-0.7

-39％

29.5

32.6

3.1

11％

Anticoagulant agent
Therapeutic agent for endometriosis,
adenomyosis and dysmenorrhea■ Generic drugs*Sales of Lexapro® in FY2022 are the sum of Mochida's own sales and sales to Mitsubishi Tanabe Pharma Corporation.
*Sales of Atelec® are the sum of Atelec® and Atedio®.

FY2023 Financial Results Presentation

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Consolidated financial statements(Millions of yen)

FY2022

FY2023（As of March 31, 2023） （As of March 31, 2024）

Total assets
Total current
assetsTotal noncurrent assets
Total liabilities andnet assets
Total current
liabilities
Total noncurrent liabilities
Total net assets

YoY
value

YoY
value

158,831

158,800-31

117,379

116,662-717

41,452

42,138685

158,831

158,800-31

27,25826,073-1,184

4,798

4,759

-38

126,775127,967

1,192

FY2023 Financial Results Presentation

Major fluctuation factors (Millions of yen)

Cash and time deposits
Accounts receivable
Inventories
Property, plant and equipment-13,720
7,032
5,873
825

Notes and accounts payable
Other current liabilities

2,225-3,273

Profit attributable to owners of parent
Purchase of treasury shares
Dividends paid
Unrealized gain on available-forsale securities

4,547-3,489-2,8862,929

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FY2024 Forecast

FY2023 Financial Results Presentation

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Plan for FY2024 Pharmaceuticals•••

Focusing on targeted areas with a focus on new drugs
 Further growth of Goofice® and Urece® etc.
 Expanding Omvoh® and Cortiment® by focus on the gastroenterology
 Aiming to launch ACT-541468 (daridorexant)
Promoting enhancement of development pipeline
Focusing on new drug discovery modalities
 Regenerative medicine products
 Nucleic acids

 Biomaterials•

Promoting each project based on alginate
 Aiming to launch dMD-001 and Nerve Cuff

 Healthcare•

Aiming for the continuous growth of the Collage Repair series and the Collage Furfur series

FY2023 Financial Results Presentation

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Consolidated financial result forecasts(Millions of yen)

FY2022(Y o Y changes)

FY2023(Y o Y changes)

FY2024 Forecasts(Y o Y changes)

Net sales

103,261(-6.3％)

102,885(-0.4％)

106,000(3.0％)

Operating profit

8,507(-40.9％)

5,802(-31.8％)

7,500(29.3％)

8.2％

5.6％

7.1％

Ordinary profit

9,085(-38.6％)

6,037(-33.5％)

7,700(27.5％)

Profit attributable toowners of parent

6,649(-37.1％)

4,547(-31.6％)

5,600(23.1％)

13,283

12,554

13,200

Ratio of operating
profit to net sales

Research anddevelopment expenses
FY2023 Financial Results Presentation16

Forecasts by business(Millions of yen)

FY2022(Y o Y changes)

FY2023(Y o Y changes)

FY2024 Forecasts(Y o Y changes)

103,261(-6.3％)

102,885(-0.4％)

106,000(3.0％)

Pharmaceuticals
business

97,340(-6.8％)

96,455(-0.9％)

99,180(2.8％)

Healthcare
business

5,920(3.3％)

6,430(8.6％)

6,820(6.1％)Net sales

FY2023 Financial Results Presentation17

Forecasts of major products (1/2)（Billions of yen）

FY2024 Forecasts
Products

FY2023

YoYSalesValueRatio■ New drugs
Treatment of ulcerative colitis

Lialda®

14.5

14.6

0.11％

Treatment for chronic constipation

Goofice®

7.7

9.0

1.2

16％

Treatment for chronic constipation

Movicol®

5.9

6.0

0.01％

Gout and hyperuricemia

Urece®

3.3

5.4

2.061％

Treatment for pulmonary arterial
hypertension
Therapeutic agent for condyloma
acuminatum and actinic keratosis

Treprost®

2.3

2.8

0.4

18％

Beselna

1.1

0.6-0.4-38％

Treatment of ulcerative colitis

Cortiment®

0.2

1.4

1.2619％Treatment of ulcerative colitis

Omvoh®

1.4‐‐‐(NHI price)*Due to discussions with partners, Omvoh® forecast is not disclosed.

FY2023 Financial Results Presentation18

Forecasts of major products (2/2)（Billions of yen）

FY2024 Forecasts
Products

FY2023

Sales

YoY
ValueRatio■ Long-listed products
Drug for hyperlipidemia andarteriosclerosis obliterans

Epadel7.4

6.5-0.8-12％

AntidepressantLexapro®

5.2

3.7-1.5-29％

Calcium channel blocker with along-acting hypotensive effectAnalgesic for chronic pain andpain after tooth extraction

Atelec®

2.3

1.8-0.4-19％

Tramcet®

2.2

2.0-0.2-10％

HeparinSodiumMOCHIDA

1.3

1.2-0.0-5％

Dinagest

1.1

0.7

-0.3

-32％

32.6

28.5

-4.1

-13％

Anticoagulant agent
Therapeutic agent for endometriosis,
adenomyosis and dysmenorrhea■ Generic drugs*Sales of Atelec® are the sum of Atelec® and Atedio®.

FY2023 Financial Results Presentation

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Development Pipeline: Ethical drugs
Development
code

Indications

Stage
Phase
Ⅱ

Phase
Ⅲ

Filed

Approved

Remarks＜Development country＞

ACT-541468

Insomnia

Co-development with Nxera
Pharma Japan Co., Ltd.
<Japan>MD-711＊

Pulmonary hypertension associatedwith interstitial lung disease orcombined pulmonary fibrosis andemphysema

Licensed-in from United
Therapeutics Corporation
In-house development<Japan>MD-0901

Ulcerative colitis(pediatric indication)

Licensed-in from Takeda
Pharmaceuticals U.S.A., Inc.
In-house development<Japan>FYU-981

Gout and hyperuricemia(pediatric indication)

Co-development with FUJI
YAKUHIN Co., Ltd.
<Japan>Hypertriglyceridemia

Collaboration with Sumitomo
Pharma (Suzhou) Co., Ltd.
<China>MND-21*Updates from November 2, 2023

FY2023 Financial Results Presentation

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Development Pipeline: Medical devices
Development codeor Common name

Intended use
or indications

Stage
Therapeutic
exploratory
study

Therapeutic
confirmatory
study

FiledApprovedRemarks＜Development country＞

dMD-001

Articular cartilage
lesionIn-house development<Japan>dMD-002

Cavernous nerve
injuryIn-house development<Japan>dMD-003

Post-operativeadhesion

In-house development<Japan>Nerve Cuff

Peripheral nerve
injuryIn-house development<USA>

FY2023 Financial Results Presentation21

Progress on the 22-24 Medium-Term
Management Plan

FY2023 Financial Results Presentation

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Vision for 2031 and 22-24 Medium-Term Management Plan (MTP)Vision for 2031

22-24
MTP

25-27
MTP

28-30
MTP

As a life and healthcare group, take on the challenge of addressing
unmet medical and health needs by incorporating new drug
discovery modalities that are expected to grow in the future.

Pharmaceuticals

Expand business domains by incorporating new
drug discovery modalities (e.g., regenerative medicineproducts)
Maintain the position as our core business

Biomaterials

Laying the foundation for “Vision for 2031”
Key issues to be addressed
1. Maximization of profits in targeted areas with afocus on new drugs
2. Continuous investment in growth to realize the“Vision for 2031”
3. Strengthening of the corporate organization tocreate innovation and improve productivity

To promote each project based on alginate andexpand business

Healthcare

To pursue further growth by investing sales resources
To lineup distinctive products and lead them to global markets【Scale of business targeted for 2031】
・Net Seles: 140 billion yen, operating margin: 15％（Biomaterials business and regenerative medicine products: 40 billion yen）

To create innovation and improve productivity
FY2023 Financial Results Presentation23

Maximization of profits in targeted areas with a focus on new drugs
FY2023
 New products•••
Pharmaceuticals
business•

FY2024
 Maximizing the sales of new drugsOmvoh®

•

Treprost® Inhalation Solution•

Cortiment®

Pegfilgrastim BS MOCHIDA

 Focused on the gastroenterology
Assembled a comprehensive productlineup of ulcerative colitis treatments,
spanning from mild to severe cases, andoffered prescribing options based on
patient symptoms and disease severity

FY2023 Financial Results Presentation

Continuous growth of Goofice® andUrece®

Expanding the sales of Omvoh ® andCortiment ® by focusing on thegastroenterology

 Aiming to launch ACT-541468(daridorexant) Continuing to focus on business-oriented
items such as authorized generics andbiosimilar in the area of generic drugs

24

Continuous investment in growth to realize the “Vision for 2031” (1/3)
FY2023
Pharmaceuticals
business

 Consideration and negotiations tostrengthen the development pipeline

FY2024
 Promoting enhancement of development
pipeline Filed: dMD-001
 Filed (510(k)): Nerve Cuff
Biomaterials
business Initiation of therapeutic confirmatory study:dMD-003
 Promotion of out-licensing activities foralginate-based pharmaceutical materials
 Establishment of Medical Device Sales
Department

FY2023 Financial Results Presentation

 Aiming to launch dMD-001
 Aiming to launch Nerve Cuff
 Promoting the development of dMD-002
and dMD-003
 Promoting out-licensing activities foralginate-based pharmaceutical materials

25

dMD-001
 A medical device primarily composed of sodium
alginate solution
 Properties of alginate• A naturally occurring polysaccharide unique to seaweed• When dissolved in water, it forms a highly viscous solutionthat gels when calcium ions are added

 Clinical trial

 Targets patients with Traumatic articular cartilage defects or
Osteochondritis dissecans of the knee or elbow

 An application for manufacturing and sales
approval was filed in May, 2023
 Aiming to launch in FY2024
FY2023 Financial Results Presentation

Femur

Cartilage

Meniscus
FibulaTibia

Articular cartilage covers thesurfaces of bones within
joints such as the knee or
elbow, providing cushioningand facilitating smooth joint
movement.
26

Continuous investment in growth to realize the “Vision for 2031” (2/3)
FY2023

 Continuous growth of the Collage Repair
series and the Collage Furfur series

Healthcare New products
business• Collage Repair Bright Essence DR•(RECs)•Stem cells from human exfoliateddeciduous teeth (SHED)• Aiming to improve brand image and expanding
business scale by reviewing product lineup andmore

Collage Furfur Whip Soap

 Promoted development in regenerative
medicine products• High purity mesenchymal stem cells
Newdrug
discovery
modalities

FY2024

Umbilical cord derived mesenchymal
stromal cells (HLC-001)

 Promoted new pharmaceutical researchusing nucleic acid pharmaceuticals
FY2023 Financial Results Presentation

 Promoting development in regenerative
medicine products• Aiming for early commercialization
 Focusing on pharmaceutical research using
nucleic acid pharmaceuticals• Promoting the acquisition of highly
specialized human resources and drug
discovery technologies

27

Continuous investment in growth to realize the “Vision for 2031” (3/3)
FY2023
 Promoted highly purified EPA drugs mainlyin Asia• Thailand: Achieved favorable sales•
Globalexpansion•

Vietnam: Filed

China: Conducted Phase Ⅲ trial andconcluded a sales contracts•

USA: Advanced joint development
partnership operation

 Promoted the expansion of Nerve Cuff inUSA

FY2023 Financial Results Presentation

FY2024
 Establishing International BusinessDevelopment Department in April, 2024
 Promoting Highly purified EPA projects•

Vietnam: Promoting launch
preparations•

China: Pushing forward with Phase Ⅲ
trial and preparing for approval•

USA: Advancing joint development
partnership operation

 Aiming to launch Nerve Cuff28

Strengthening of the corporate organization to create innovationand improve productivity
FY2023
 Initiation of operation of personnel andwage systems that allows diverse humanresources can participate
Institutio  Implementation of new customer
nal andmanagement system and other systems
system Investigation of compliance monitoring
methods related to overseas sales

FY2023 Financial Results Presentation

FY2024

 Full utilization of the systems and institutions
that have established29

Shareholder returns

Policy Maintaining a stable dividends while enhancing internal reserves for
future business development
 Maintaining the dividend of at least 80 yen per share during the 2224 MTP period（yen）Annual dividendsper share

FY202280.00(Interim 40.00)

FY2023
FY2024 Forecasts
80.0080.00(Interim 40.00)(Interim 40.00)

 Purchase of treasury shares: About 3.5 billion yen Cancellation of treasury shares: 1.03 million shares(2.68% of the total number of outstanding shares before cancellation)
 Operating margin: 63.1%, Total return ratio: 139.7%
FY2023 Financial Results Presentation

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FY2023 Financial Results Presentation

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