Disclaimer: This translation is prepared and provided for readers’ convenience only. This summary does not constitute any
guarantee, and the Company will not compensate any losses and/or damage stemming from actions taken based on thesestatements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed
to be correct.

May 14, 2021

Summary of Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending December 31, 2021 (JGAAP)
Listed company’s name: RaQualia Pharma Inc.
Listed on:
Tokyo Stock Exchange (TSE)
Stock code:
4579
URL:
https://www.raqualia.com/
Representative:
Hirobumi Takeuchi, President and CEO
Contact:
Hidefumi Sugiyama, General Manager, Finance & Accounting Dept.
Scheduled date of filing of quarterly securities report: May 14, 2021
Scheduled date of dividend payment:―
Supplementary documents for quarterly results:
Yes
Quarterly results briefing:
Yes(TEL) +81-52-446-6100(Amounts are rounded down to the nearest million yen.)

1.

Consolidated financial results for the first three months of the fiscal year ending December 31, 2021 (January 1, 2021 toMarch 31, 2021)(1) Consolidated operating results (cumulative)(Percentage figures represent changes from the same period of the previous fiscal year.)Net sales

Operating profit

First three months ended
million yen%
million yen%
March 31, 2021
655
430.7
149
–
March 31, 2020
123
(64.5)(273)–
Note: Comprehensive income
Three months ended March 31, 2021:
Three months ended March 31, 2020:
Earnings per share (Basic)
First three months ended
March 31, 2021
March 31, 2020

Profit attributable toowners of parent

Ordinary profit
million yen%

million yen

%

268
(267)
206 million yen(366) million yen

–
–

188
(328)

–
–

[–%]
[–%]

Earnings per share (Diluted)

yen

yen

9.00
(15.66)

9.00–(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofmillion yen
million yen%
March 31, 2021
4,628
4,218
90.9
December 31, 2020
4,251
4,011
94.1
Reference: Equity As of March 31, 2021: 4,206 million yen
As of December 31, 2020: 3,999 million yen
2.

Dividends
First quarter-end
yenAnnual dividends per share
Second quarter-end Third quarter-end
Fiscal year-end
yen

Fiscal year ended–
0.00–
December 31, 2020
Fiscal year ending–
December 31, 2021
Fiscal year ending
0.00–
December 31, 2021
(forecast)
Note: Revisions to the forecasts of dividends most recently announced: None

yen

Total

yen

yen

0.00

0.00

0.00

0.00

3.

Forecasts of consolidated financial results for the fiscal year ending December 31, 2021 (January 1, 2021 to December 31,
2021)(Percentage figures represent year-on-year changes)

Net sales
million yen

Operating profit%

million yen

Profit attributable to Earnings perowners of parent
share (Basic)

Ordinary profit%

million yen%

million yen%

yen

Fiscal year ending
2,738 147.3
420
–
427
–
343
16.41
–
December 31, 2021
Note: Revisions to the forecasts of results most recently announced: None
* As the Company conducts performance management on an annualized basis, forecasts of results over a six-month period areomitted.

* Notes(1) Changes in significant subsidiaries during the first three months ended March 31, 2021 (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of special accounting for preparing quarterly consolidated financial statements: Yes
Note: For more details, please refer to the section of “(4) Notes to quarterly consolidated financial statements (Application of
special accounting for preparing quarterly consolidated financial statements)” of “2. Quarterly consolidated financial
statements and significant notes thereto” on page 9 of the attached material.
(3) Changes in accounting policies, changes in accounting estimates, and restatements of prior financial statements
a. Changes in accounting policies due to the revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Yes
c. Changes in accounting estimates: None
d. Restatements of prior financial statements: None
Note: For more details, please refer to the section of “(4) Notes to quarterly consolidated financial statements (Changes inaccounting policies)” of “2. Quarterly consolidated financial statements and significant notes thereto” on page 9 of theattached material.
(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

20,941,642 shares

As of December 31, 2020

20,941,642 sharesb. Total number of treasury shares at the end of the period
As of March 31, 2021

50 shares

As of December 31, 2020

50 sharesc. Average number of outstanding shares during the period (cumulative from the beginning of the fiscal year)
For the first three months ended March 31, 2021

20,951,592 shares

For the first three months ended March 31, 2020

20,950,317 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an
audit corporation.
* Appropriate use of financial forecasts and other special remarks(Caution concerning forward-looking statements)
Forward-looking statements provided in this document, including financial forecasts, are based on the information currently
available to the Company and certain assumptions considered reasonable. Such statements are included without any guarantee asto their future achievement. Actual results, etc. may differ materially from the forecasts depending on various factors. For the
suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to the sectionof “(3) Qualitative information regarding consolidated earnings forecasts” of “1. Qualitative information regarding settlement ofaccounts for the first three months” on page 4 of the attached material.
As it is currently difficult to anticipate the impact of the spread of the novel coronavirus disease (COVID-19), it is not factored
into financial forecasts. If any revisions to financial forecasts are deemed necessary going forward, the Company will promptly
disclose them.
(Method of accessing supplementary documents for quarterly results and details of quarterly results briefing)
The Company plans to hold a briefing for the first three months as follows;[Streaming date]
May 21, 2021 (Friday) 10:30 to 11:30 a.m. (Japan Time)[Briefing format]
Online (Vimeo)[How to apply]
Please use the URL below. Deadline for applications is May 16, 11:59 p.m. (Japan Time)[URL]
https://www.raqualia.co.jp/ir/join.html (Japanese only)[Details]
Briefing and Q&A for the first three months ended March 31, 2021
(Note) Due to the system adopted for video streaming, there is a limit of first 500 streaming recipients.
The Company plans to post the video of this briefing on its website promptly after the briefing is held, in addition to thepresentation materials for the quarterly results to be used on the day of the briefing.

Contents of attachment
1.

Qualitative information regarding settlement of accounts for the first three months ................................................... 2(1) Qualitative information regarding consolidated operating results ............................................................................ 2(2) Qualitative information regarding consolidated financial position........................................................................... 4(3) Qualitative information regarding consolidated earnings forecasts .......................................................................... 4

2.

Quarterly consolidated financial statements and significant notes thereto ................................................................... 5(1) Consolidated balance sheet ....................................................................................................................................... 5(2) Consolidated statement of income and consolidated statement of comprehensive income ...................................... 7
Consolidated statement of income (cumulative)....................................................................................................... 7
Consolidated statement of comprehensive income (cumulative) ............................................................................. 7(3) Consolidated statement of cash flows ....................................................................................................................... 8(4) Notes to quarterly consolidated financial statements................................................................................................ 9
Notes on premise of going concern .......................................................................................................................... 9
Notes on significant changes in the amount of shareholders’ equity ........................................................................ 9
Application of special accounting for preparing quarterly consolidated financial statements .................................. 9
Changes in accounting policies ................................................................................................................................ 9
Additional information ............................................................................................................................................. 9
Segment information, etc. ......................................................................................................................................... 9
Significant subsequent event .................................................................................................................................... 9

-1-

1.

Qualitative information regarding settlement of accounts for the first three months(1) Qualitative information regarding consolidated operating results
1) Financial results
During the first three months ended March 31, 2021, the financial market in Japan was active due to monetary easing. However,the spread of novel coronavirus disease (“COVID-19”) mutants has made the economic prospects extremely severe. In thepharmaceutical industry, although many companies are facing declining business performance due to COVID-19, developmentsof new mRNA vaccines and drugs for COVID-19 have been active.
Under such conditions, the Group achieved the following financial results during the first three months.
Regarding licensed-out drug products, development progressed steadily as a whole despite a delay due to COVID-19. As a result,
the Company received milestone payment from Asahi Kasei Pharma Corporation (headquarters: Chiyoda-ku, Tokyo, “Asahi
Kasei Pharma”) and Maruho Co., Ltd. (headquarters: Kita-ku, Osaka, “Maruho”) in the period under review.
With regard to the P2X7 receptor antagonist (AK1780/RQ-00466479) licensed to Asahi Kasei Pharma, a license agreement for
the P2X7 receptor antagonist was concluded between Asahi Kasei Pharma and Eli Lilly and Company (headquarters: Indianapolis,
Indiana, U.S., “Lilly (U.S.)”). As a result, it means the Company has licensed it to Lilly (U.S.) through Asahi Kasei Pharma.
P2X7 receptors have been implicated in neuroinflammation, a driving force in chronic pain conditions. Lilly (U.S.) will work on
global development for the P2X7 receptor antagonist. If the P2X7 receptor antagonist is successfully commercialized, Asahi
Kasei Pharma would be eligible for up to US$180 million in potential sales milestones, as well as tiered royalties ranging fromthe mid-single to low-double digits.
With regard to the selective sodium channel blocker licensed to Maruho, pre-defined results were achieved, and as a result, theCompany received milestone payment. This compound, of which Maruho is carrying out development, is expected to become adrug that relieves symptoms including pain and itching by selectively blocking particular sodium channel functions.
A new drug application (NDA) for tegoprazan (brand name in South Korea (registered trademark in South Korea): K-CAB®,“tegoprazan”), a drug for gastro-esophageal reflux disease, which the Company licensed to HK inno.N Corporation (headquarters:
Seoul, South Korea, “HK inno.N (South Korea)”) and was sublicensed to Shandong Luoxin Pharmaceutical Group Stock Co.,
Ltd. (China), has been accepted by the Chinese authority. HK inno.N (South Korea) anticipates that tegoprazan will be launchedin China in the first quarter of 2022.
The financial results of marketed drug products were as follows:
Regarding human drug products, strong sales were seen as in the previous fiscal year in tegoprazan licensed to HK inno.N (South
Korea). Sales from external prescriptions recorded an increase of 54.1% compared with the same period of the previous fiscal
year.
With regard to pet drug products, solid sales were seen in the EP4 antagonist (grapiprant/brand name: GALLIPRANT®;“GALLIPRANT®”), which has been marketed as a drug for osteoarthritis in dogs, and the Ghrelin receptor agonist(capromorelin/brand name: ENTYCE®), which has an indication for anorexia management for dogs, both of which were licensed
to Elanco Animal Health Inc. (headquarters: Indiana, U.S., “Elanco (U.S.)”). The sales recorded an increase of 56.2% comparedwith the same period of the previous fiscal year. Elanco (U.S.) announced that it started selling ELURATM (capromorelin/RQ00000005/AT-002), a ghrelin receptor agonist, in the U.S. as a drug for the management of weight loss in cats with chronic kidneydisease (CKD).
With regard to the business activities of subsidiaries, at TMRC Co., Ltd., the Phase II combination clinical trial has progressed
well for the retinoic acid receptor alpha agonist (Tamibarotene/TM-411/SY-1425) licensed to Syros Pharmaceuticals Inc.
(headquarters: Cambridge, Massachusetts, U.S., “Syros (U.S.)”). Thus, Syros (U.S.) announced in February 2021 that it will start
Phase III clinical trials in the U.S.
A new management system including a change of Representative Director was adopted as shareholder proposals were approved
and adopted at the 13th Ordinary General Meeting of Shareholders held on March 25, 2021. Currently, the Company is making
efforts to accelerate the improvement of our corporate value under the new management system.
In the Company’s securities report for the fiscal year ended December 31, 2020, which was submitted on March 30, 2021, theshares of the Company fell under two delisting criteria, the criteria pertaining to business performance and the criteria pertaining
to recorded profit. As a result, the shares of the Company entered a grace period relating to delisting criteria on the same date. As
the section transfer criteria and delisting criteria, which are not included in the criteria for maintaining listing for the new market
segments, will be deleted on June 30, 2021, the Company’s status of having entered a grace period on April 30, 2021 will beannulled.

-2-

This is explained by Tokyo Stock Exchange, Inc. in its news release “Partial Revision of the Enforcement Rules for Securities
Listing Regulations in Accordance with the Development of Listing Rules for Cash Equity Market Restructuring (second set ofrevisions)” announced on April 30, 2021.
Accordingly, operating results for the first three months, the reporting period, were as follows. Business revenue for the period
was 655 million yen (up 430.7% year on year), operating profit totaled 149 million yen (compared with operating loss of 273
million yen a year earlier), ordinary profit totaled 268 million yen (compared with ordinary loss of 267 million yen a year earlier),and profit attributable to owners of parent was 188 million yen (compared with loss attributable to owners of parent of 328 million
yen a year earlier).
Business revenue mainly consists of millstone income of 516 million yen (compared with – million yen a year earlier) and sales
royalty income of 135 million yen (up 56.2% year on). On the other hand, total business expenses were 506 million yen (up 27.6%
year on year). This total mainly consists of cost of business revenue (41 million yen, a 61.2% increase from the same period of
the previous fiscal year), research and development expenses (255 million yen, a 14.4% increase from the same period of theprevious fiscal year) and other selling, general and administrative expenses (209 million yen, a 41.8% increase from the same
period of the previous fiscal year). A main reason for an increase of other selling, general and administrative expenses is that costfor the Ordinary General Meeting of Shareholders associated with shareholder proposals was 60 million yen, more than doublethat of ordinary years.
2)

Research and development

Research and development expenses of the entire Group during the first three months were 255 million yen. For the first threemonths, there were no material changes to the research and development activities.

-3-(2) Qualitative information regarding consolidated financial position
1) Analysis of assets, liabilities and net assets
AssetsTotal assets as of March 31, 2021 were 4,628 million yen, an increase of 377 million yen (up 8.9%) from the end of theprevious fiscal year. This is mainly attributable to an increase in cash and deposits of 640 million yen and a decrease in
securities of 379 million yen.
Liabilities
Total liabilities as of March 31, 2021 were 410 million yen, an increase of 170 million yen (up 70.8%) from the end of theprevious fiscal year. This is mainly attributable to an increase in accounts payable - other of 99 million yen and an increase
in income taxes payable of 29 million yen.
Net assets
Total net assets as of March 31, 2021 were 4,218 million yen, an increase of 206 million yen (up 5.2%) from the end of theprevious fiscal year. This is mainly attributable to the recording of profit attributable to owners of parent of 188 million yen
and an increase in valuation difference on available-for-sale securities of 18 million yen.
Consequently, the equity ratio was 90.9% (down 3.2 percentage points from the end of the previous fiscal year.)2)

Analysis of cash flows

The balance of cash and cash equivalents (“net cash”) as of March 31, 2021 amounted to 2,041 million yen (compared with 2,430
million yen a year earlier), a decrease of 19 million yen (down 1.0%) from the end of the previous fiscal year.
The respective cash flows in the first three months and the factors thereof are as follows.
Cash flows from operating activities
Net cash provided by operating activities was 52 million yen (down 60.9% year on year). This is mainly attributable to therecording of profit before income taxes of 271 million yen, a cash outflow from an increase in trade receivables of 99 million
yen, a cash outflow from an increase in prepaid expenses of 199 million yen, and income taxes paid of 48 million yen.
Cash flows from investing activities
Net cash used in investing activities was 154 million yen (compared with net cash of 105 million yen provided a year earlier).
This is mainly attributable to payments into time deposits of 207 million yen, purchase of property, plant and equipment of
53 million yen, and proceeds from sales of investment securities of 110 million yen.
Cash flows from financing activities
Net cash provided by financing activities was 6 million yen (compared with net cash of 0 million yen used a year earlier).
This is mainly attributable to proceeds from short-term borrowings of 10 million yen and repayments of lease obligations of
3 million yen.
(3) Qualitative information regarding consolidated earnings forecasts
There has been no change to the figures of the consolidated earnings forecasts for the fiscal year ending December 31, 2021
contained in the “Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2020 (JGAAP)” announced
on February 12, 2021. The Company will make an announcement on its earnings forecasts when the business plan has been
finalized under the new management system.

-4-

2.

Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Thousands of yen)
As of December 31, 2020

As of March 31, 2021

1,394,128
530,818
719,418–
6,540
36,41250,24396,671
2,834,232

2,035,009
630,252
339,969
1,050
14,90542,900249,621
14,842
3,328,551

78,501
208,278
46,187
332,967

77,195
240,788
44,123362,107

4,439
27,927639
33,005

4,257
31,486639
36,383

1,037,601
10
2,959
10,457
1,051,029
1,417,002
4,251,235

887,792237
2,959
10,240901,2291,299,720
4,628,272

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Securities
Work in process
Supplies
Advance payments - trade
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Tools, furniture and fixtures, net
Leased assets, net
Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets-5-

(Thousands of yen)
As of December 31, 2020

As of March 31, 2021

41,83018,281–
52,66649,86820,882–
3,133–
186,662

44,946
17,586
10,000152,274
50,61750,3172,337
8,201
21,387357,668

27,23812,031
14,17353,443
240,106

24,864
12,055
15,58752,507410,176

2,255,401
2,445,184(706,157)(21)
3,994,407

2,255,401
2,445,184(517,579)(21)
4,182,985

4,809

23,198

4,809
11,912
4,011,129
4,251,235

23,198
11,912
4,218,096
4,628,272

Liabilities
Current liabilities
Accounts payable - trade
Lease obligations
Short-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Other
Total current liabilities
Non-current liabilities
Lease obligations
Asset retirement obligations
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets-6-

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)(Thousands of yen)First three months ended
March 31, 2020

First three months ended
March 31, 2021

123,537

655,61025,760223,749
147,413396,922(273,385)

41,529255,977
209,059
506,566
149,043

2,268
8,314
–

359
5,319
111,683

5,880

–

1,500
172
18,136

1,972
2,404
121,738–
12,457–78
1
12,536(267,785)

398
–
2,040
–
–
2,438
268,343

750
4,768
5,518
(262,267)
65,859(328,127)–(328,127)

–
3,382
3,382
271,726
83,148
188,578–
188,578

Business revenue
Business expenses
Cost of business revenue
Research and development expenses
Other selling, general and administrative expenses
Total business expenses
Operating profit (loss)
Non-operating income
Interest income
Interest on securities
Foreign exchange gains
Gain on valuation of compound financial
instruments
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of compound financial instruments
Share issuance costs
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent
Consolidated statement of comprehensive income (cumulative)(Thousands of yen)First three months ended
March 31, 2020

First three months ended
March 31, 2021

(328,127)

188,578(38,111)(38,111)(366,239)

18,38818,388206,967(366,239)

206,967––

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7-(3) Consolidated statement of cash flows(Thousands of yen)First three months ended
March 31, 2020

First three months ended
March 31, 2021

(262,267)
24,985(2,268)(8,314)–
9,896

271,726
32,324(359)(5,319)398(89,487)(5,880)2,040(1,500)78(750)(4,768)623,813377(8,025)(289)(158,409)(14,667)(1,972)––(3,382)(99,434)(9,415)
3,116(6,488)(199,431)
94,680871

74,146(4,951)
187,930
12,762–(67,906)
1,500
134,285

31,84594,987
4,653(398)(48,698)
1,972
52,516–(6,918)750(902)
112,926
105,855(207,380)(53,557)–(4,757)110,923(154,771)–

10,000

110

–

(185)
(75)

(3,068)
6,931(9,919)75,425230,145
2,200,206
2,430,352(19,898)
2,061,316
2,041,418

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Interest income
Interest income on securities
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of compound financial
instruments
Subsidy income
Share issuance costs
Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in advance payments - trade
Decrease (increase) in prepaid expenses
Increase (decrease) in accounts payable - other
Decrease (increase) in consumption taxes refund
receivable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Subsidies received
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Repayments of lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-(4) Notes to quarterly consolidated financial statements
Notes on premise of going concern
No items to report.
Notes on significant changes in the amount of shareholders’ equity
No items to report.
Application of special accounting for preparing quarterly consolidated financial statements(Calculation of tax expenses)
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimated effective tax rates after
the application of tax effect accounting to the profit before income taxes for the fiscal year including the quarter under review.
Income taxes is the amount inclusive of income taxes - deferred.
Changes in accounting policies(Change in methodology for calculating tax expenses)
Tax expenses were calculated in the same method as that used in year-end closing of accounts. However, the Company has
adopted the consolidated tax payment system starting from the period under review, aiming to perform quarterly closing ofaccounts quickly and efficiently. Accordingly, the calculation method has been changed starting from the period under review.
With the changed calculation method, tax expenses are calculated by multiplying the profit before income taxes for the quarterby the reasonably estimated effective tax rates after the application of tax effect accounting to the profit before income taxes
for the fiscal year.
As the effect of this change on quarterly consolidated financial statements is immaterial, no retrospective application has been
performed.
Additional information(Application of tax effect accounting for transition from consolidated taxation system to group tax sharing system)
As for items regarding the transition to the group tax sharing system introduced in the “Act Partially Amending the Income
Tax Act” (Act No. 8 of 2020) and items revised on non-consolidated taxation system in connection with the transition to thegroup tax sharing system, the Company and its consolidated subsidiaries have not applied the provisions of paragraph 44 of
the “Guidance on Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Guidance
No. 28, February 16, 2018) as allowed by the provisions of paragraph 3 of the “Tax Effect Accounting for the Transition fromthe Consolidated Taxation System to the Group Tax Sharing System” (ASBJ PITF No. 39, March 31, 2020). Accordingly,
amounts of deferred tax assets and deferred tax liabilities are determined in accordance with the provisions of the tax law
before revision.
(Accounting estimates amid the spread of COVID-19)
The Group has determined the accounting estimates for impairment accounting of non-current assets, etc. based on information
available when preparing the consolidated financial statements. The effects of the spread of COVID-19 on the Group arelimited at the present time and the Group has determined that there will not be a significant impact on the estimates for the
fiscal year under review.
(Liquidation of consolidated subsidiaries)
Dissolution of the Company’s consolidated subsidiary, RaQualia Innovations Inc. was resolved on January 22, 2021, and theliquidation was completed as of April 1, 2021. The liquidation has an immaterial impact on the consolidated business results.
Segment information, etc.
[Segment information]
I. For the first three months ended March 31, 2020 (January 1, 2020 to March 31, 2020)
This information is omitted because the Group consists of a single business segment dealing with research and developmentof pharmaceutical and related businesses.
II.

For the first three months ended March 31, 2021 (January 1, 2021 to March 31, 2021)
This information is omitted because the Group consists of a single business segment dealing with research and developmentof pharmaceutical and related businesses.

Significant subsequent event
No items to report.

-9-