1. Overview of Consolidated Financial Results 2. Highlights of Business Performance 3. Consolidated Financial Results
P.4 4. Main Product Sales Update 5. R&D Expenses, Capex & Depreciation 6. Development pipeline P.5 P.6 P.7～8
【Reference】
7. Consolidated Financial Results and full year Forecast 8. P&L Summary P.9 P.10～11 9. BS Summary 10. Financial summary 11. KYORIN Pharmaceutical result P.12 P.13 P.14～17 May 11, 2022 KYORIN Holdings, Inc.
■ Disclaimer
This material contains performance forecasts, goals and plans, and other forward-looking statements related to the Group. These statements are based on the judgment of the Group’s assumptions and outlooks based on the information and forecasts available at the time of preparation of this material, and contain known or unknown risks and uncertainties. Therefore, due to various factors that may occur, the actual performance, progress / success / failure of the development and other insights may differ significantly from the description. It also contains information about medicines (including those under development), but the description is not for the purpose of advertising or medical advice.

Consolidated Financial Results for Fiscal 2021
Although the respiratory and otolaryngology markets, which are our priority areas, shrank due to the impact of NHI drug price revisions and the spread of the new coronavirus infection etc., both net sales and profit reached the Forecast that was announced on May 11, 2021 by efficient promotion. 【Net sales】Sales of New ethical drugs such as "Desalex","Beova" increased, and sales of long-listed products increased due to product supply insecurity for quality problem of some generics drug companies. Other hand, Sales of out-licensing products and lump-sum payment income for out-licensed products decreased, then sales of New ethical drugs, etc. (Japan) remained flat. In addition, Generic drugs increased, and overall sales were 105,534 million yen. 【Profit】 Despite an increase of sales, gross profit decreased to 49,441 million yen (51,627 million yen in previous fiscal year) due to an increase in the cost ratio. Although an upfront payment for a drug for treating chronic cough was posted, SG&A expenses (including R & D expenses) was 44,433 million yen, down from year on year (45,841 million yen in previous fiscal year) due to cost reduction, etc.. As a result, Operating income was 5,007 million yen, Ordinary income was 5,569 million yen, Net income was 3,932 million yen. *Announced Revision of Consolidated Financial Forecasts for Fiscal Year Ended March 31, 2022 on April 26,2022.
Consolidated Financial Forecast for Fiscal 2022
Although net sales will be affected by NHI drug price revisions, new ethical drugs, etc. (Japan), are projected to increase by lifting of shipment adjustments of "Beova" and launch of "Lyfnua", etc.. About profit, Gross profit are expected to increase by increase of net sales, SG&A are projected to increase by increase for R&D expenses. From the above, in terms of consolidated results for the fiscal year ending March 31, 2022, net sales are forecast to be 112,000 million yen (up 6.1% from the previous year), operating income to be 5,500 million yen (up 9.8% from the previous year), and profit attributable to owners of parent to be 4,500 million yen (up 14.4% from the previous year). "From the beginning of the current term for the fiscal year ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar 31,2020) etc. h and the revenue recognition standards for the previous period is different from the current period, the amount of increase / decrease compared to the previous period and th are not shown. There is no impact on operating income, ordinary income, and net income, from the application of the "Accounting Standard for Revenue Recognition". 2
(Units : ¥ billion) FY2020 FY2021
Net sales increased
Cost of sales ratio increased <Reason of decrease> ● Sales of New drugs increased <Reasons of increase> ●  Impact of NHI drug price revisions (Kyorin Pharmaceutical : 6% range) ●  Sales of Generic drugs increased
Gross profit decreased
SG&A cost decreased ●  Cost of R&D decreased Upfront payment for AKP-009 in FY2020 ●  SG&A (excluding R&D) decreased Upfront payment for Lyfnua Tablets 45mg Cost reduction Applied to "Accounting Standards for Revenue Recognition", etc. Operating income decreased
decreased by 966 million yen, and there is no impact on operating income, ordinary income, and net income. ■ Net Income ¥ 3.9bln （－2.2） (+ 1.2)

<Capital expenditure (Actual / Forecast)>

Ph Ill ～ Application submitted ※Changes from the previous announcement (Feb 4, 2022)

POC Project (Ph l ～ Ph ll)

Licensing development (License-in) ※Changes from the previous announcement (Feb 4, 2022)

Licensing development (License-out)

FPR-2 agonist program was deleted from Main R&D Activities since BMS(Licensee) decided to discontinue development of FPR-2 agonist program for strategic reasons ※Compound for sensorineural healing loss was deleted from Main R&D Activities since Otonomy (Licensee) decided to discontinue development of for sensorineural healing loss (Reference)
From the beginning of the current term for the fiscal year ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar 31,2020) etc. have been applied, and the FY2021 results is based on the "Accounting Standard for Revenue Recognition". 10
From the beginning of the current term for the fiscal year ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar 31,2020) etc. have been applied, and the FY2021 results is based on the "Accounting Standard for Revenue Recognition". 11

<Breakdown>

have been applied, and the FY2021 results is based on the "Accounting Standard for Revenue Recognition". 13
• Upfront of payment income for Lascufloxacin (out-licensing to  Chinese company) ● Generic drugs ¥ 23,361mil ( n/a ) • Sales increase in AG products (Kipres AG, etc.) From the beginning of the current term for the fiscal year ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar 31,2020) etc. have been applied, and the FY2021 results is based on the "Accounting Standard for Revenue Recognition". 14
From the beginning of the current term for the fiscal year ending March 31, 2022, "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29, Mar 31,2020) etc. have been applied, and the FY2021 results is based on the "Accounting Standard for Revenue Recognition". 15

<Breakdown>

have been applied, and the FY2021 results is based on the "Accounting Standard for Revenue Recognition". 17