Kaken Pharmaceutical : Consolidated Financial Results for the First Quarter of Fiscal 2022

August 3, 2022

Consolidated Financial Results for the First Quarter of Fiscal 2022

(Three-Month Period Ended June 30, 2022) [JGAAP]

Company name:	KAKEN PHARMACEUTICAL CO., LTD.
Stock exchange listing:	Tokyo Stock Exchange
Securities code number:	4521
URL:	https://www.kaken.co.jp/
Representative:	Hiroyuki Horiuchi, President and Representative Director
Contact:	Kazuhiro Kondo, General Manager of General Affairs Department
Telephone:	[phone]

Scheduled date of quarterly securities report submission:	August 10, 2022
Scheduled date of dividend payment commencement:	-
Supplementary materials for quarterly financial results:	Yes
Quarterly financial results briefing:	None

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three-Month Period of Fiscal 2022 (April 1, 2022 to June 30, 2022)

(1) Consolidated Operating Results (cumulative)				(Percentage indicates year-on-year change)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of the Company
		(Million yen)		(%)	(Million yen)		(%)	(Million yen)	(%)	(Million yen)	(%)
Three-Month period of Fiscal 2022		18,197		(1.4)	4,056		(8.3)	4,332	(7.0)	2,907	(13.5)
Three-Month period of Fiscal 2021		18,453		2.1	4,421		(12.1)	4,660	(11.2)	3,362	(12.0)
Note:
Comprehensive income:
Three-Month period of Fiscal 2022:	¥ 3,014 million [(8.6)%]
Three-Month period of Fiscal 2021:	¥ 3,297 million [(27.8)%]
		Basic earnings	Diluted earnings
		per share		per share
		(Yen)		(Yen)
Three-Month period of Fiscal 2022				76.91	-
Three-Month period of Fiscal 2021				87.78	-
(2) Consolidated Financial Position
		Total assets		Net assets		Equity-to-asset ratio
		(Million yen)		(Million yen)		(%)
As of June 30, 2022	165,101	137,853		83.1
As of March 31, 2022	165,181	138,325		83.4

Reference:

Equity:

As of June 30, 2022: ¥ 137,275 million

As of March 31, 2022: ¥ 137,747 million

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2. Cash Dividends

		Annual dividends per share
	1st quarter	2nd quarter	3rd quarter		Year-end	Total
	(Yen)	(Yen)	(Yen)		(Yen)	(Yen)
Year ended March 31,	-	75.00	-		75.00	150.00
2022
Year ending March 31,	-
2023
Year ending March 31,		75.00	-		75.00	150.00
2023 (Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(Percentage indicates year-on-year change)

								Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit	earnings
		owners of the Company
								per share
	(Million yen)		(%)	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)	(Yen)
Year ending	76,400		0.5	15,000	(12.1)	15,500	(11.6)	12,000	25.7	318.78
March 31, 2023

Note: Revisions to the financial forecast most recently announced: None

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* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changes in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies other than 1): None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common stock)

1. Number of issued shares at the end of the period (including treasury stock)
2. Number of treasury shares at the end of the period
3. Average number of shares during the period

As of June 30, 2022	45,939,730 shares	As of March 31,	45,939,730 shares
2022
As of June 30, 2022	8,296,423 shares	As of March 31,	8,121,361 shares
2022
Three-Month period	37,808,445 shares	Three-Month period	38,308,428 shares
of Fiscal 2022	of Fiscal 2021

Note: The number of treasury shares at the end of the period includes the Company's shares held by the "Board Benefit Trust (BBT)" (38,500 shares as of June 30, 2022 and 38,500 shares as of March 31, 2022). The Company's shares held by the BBT are included in the number of treasury stock to be deducted in the calculation of the average number of shares during the period (38,500 shares as of June 30, 2022 and 39,400 shares as of June 30, 2021).

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of proper use of earnings forecasts, and other special matters:

(Caution regarding forward-looking statements)

The performance forecasts and other descriptions on future events presented in this material are based on information currently available and certain assumptions considered to be reasonable. The actual performance may differ from these forecasts.

How to review the supplementary material to the quarterly financial results reports:

It has been posted on the Company's web site, along with the quarterly financial results reports.

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2. Consolidated Financial Results for Three-Month Period of Fiscal 2022

(1) Consolidated balance sheets

(Millions of yen)

		Fiscal 2021	Three-Month Period of
		Fiscal 2022
		(As of March 31, 2022)
		(As of June 30, 2022)
Assets
Current assets
Cash and deposits	61,025	59,999
Notes and accounts receivable - trade, and	20,260	20,500
contract assets
Marketable securities	13,599	13,699
Merchandise and finished goods	5,807	6,890
Work in process	2,964	2,643
Raw materials and supplies	6,209	6,189
Other	746	835
Allowance for doubtful accounts	-	(0)
Total current assets	110,613	110,758
Non-current assets
Property, plant and equipment
Buildings and structures, net	17,142	16,926
Other, net	8,591	8,370
Total property, plant and equipment	25,734	25,296
Intangible assets
In-process research and development	7,300	7,300
Other	936	970
Total intangible assets	8,236	8,270
Investments and other assets
Investment securities	17,093	17,224
Other	3,503	3,550
Total investments and other assets	20,596	20,774
Total non-current assets	54,567	54,342
Total assets		165,181	165,101

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(Millions of yen)

						Fiscal 2021		Three-Month Period of
							Fiscal 2022
						(As of March 31, 2022)
							(As of June 30, 2022)
	Liabilities
		Current liabilities
			Notes and accounts payable-trade			5,861			6,556
			Electronically recorded obligations-operating	78	73
			Short-term bank loans			3,850			3,850
			Income taxes payable	2,436	1,322
			Provision for bonuses			984			471
			Other	5,838	7,163
			Total current liabilities			19,049			19,438
		Non-current liabilities
			Provision for share-based remuneration			106			70
			Net defined benefit liability	5,039	5,000
			Deferred tax liabilities			2,229			2,229
			Other	431	509
			Total non-current liabilities			7,806			7,809
		Total liabilities	26,855	27,247
	Net assets
		Shareholders' equity
			Common stock			23,853			23,853
			Capital surplus	11,406	11,406
			Retained earnings			126,347			126,416
			Treasury stock	(28,714)	(29,360)
			Total shareholders' equity			132,893			132,315
		Accumulated other comprehensive income
			Net unrealized holding gain on securities			4,551			4,642
			Remeasurements of defined benefit plans	301	317
			Total accumulated other comprehensive				4,853			4,960
			income
		Non-controlling interests	578	578
		Total net assets		138,325		137,853
	Total liabilities and net assets		165,181	165,101

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