First Quarter Consolidated Financial Results for the Fiscal Year Ending March 31, 2024

1.

Overview of Consolidated Financial Results

P.2

2.

Highlights of Business Performance

P.3

3. Consolidated Financial Results

P.4

4.

Main Product Sales Update

P.5

5.

Financial Results and Forcast

P.6

6.

Development pipeline

P.7～9

August 2, 2023

KYORIN Pharmaceutical Co., Ltd.

■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.

Notice: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

1

Overview of Consolidated Financial Results for FY2023

FY2020

FY2021

FY2022

FY2023

Change

Interim term

Change

Full term

Change

（JPY millions）

FY2023

FY2023

1Q (Apr-Jun)

1Q (Apr-Jun)

1Q (Apr-Jun)

1Q (Apr-Jun)

（％）

（％）

（％）

（Forecast）

(Forecast）

Net sales

24,689

24,695

24,619

27,854

＋13.1

53,700

+9.4

116,200

+2.6

Operating profit

2,014

－756

489

710

＋45.1

600

－22.9

6,000

+17.1

Ordinary profit

2,265

－491

779

913

＋17.2

900

－23.2

6,500

+11.5

Profit attributable to

1,609

－462

1,183

676

－42.8

700

－43.7

4,900

+3.7

owner of parent

First Quarter Consolidated Financial Results for FY2023

[Net sales] Sales of new drugs etc. (Japan) increased from year on year by sales increase in Beova, Lasvic etc. by the efforts to spread of the product, while the impact of the NHI drug price revision. And also sales of generic drugs increased. As a result, net sales were 27,854 million yen (an increase of 3,234 million, yen year on year)

[Profit] Gross profit was 12,232 million yen (an increase of 1,193 million yen year on year) due to increase in sales. On the other hand, SG&A expenses increased 972 million yen (R&D expenses decreased 273 million yen) . As a result, operating profit was 710 million yen (a increase of 220 million yen, year on year). Profit attributable to owner of parent was 676 million yen (a decrease of 506 million yen) , compare to an extraordinary income of 879 million yen in previous year.

Consolidated Financial Results for FY2023 (Forecast)

The forecast for the interim term and full term announced on May 11, 2023 remain unchanged at this moment. (Progress compared with the forecast for the interim term, net sales: 51.9%, operating income: 118.4%) There is no change to the dividend plan announced on May 11, 2023 (Annual dividend of 52 yen per share).

2

Highlights of Business Performance

（JPY billions）

（JPY billions）

Net sales increased (+ 3.3 )

25.0

20.0

15.0

10.0

5.0

0.0

Cost of

Sales

13.6

Cost of

Sales Ratio

Net Sales 55.2%

24.6

R&D

2.3

SG&A

（excluding R&D）

8.3

SG&A

10.5

Operating

Income

0.5

Net Sales

27.9

Cost of

Sales

15.6

Cost of

Sales Ratio

56.1%

R&D

2.0

SG&A

（excluding R&D）

9.5

0.7

SG&A

11.5

Operating

Income

0.7

  • Increase in sales of new drugs
    • Main products (Beova, Lasvic) grew
  • Increase in sales of generic drugs

Cost of sales ratio increased (＋0.9 %point)

  • Increase in sales of new drugs
  • Impact of NHI drug price revisions (Kyorin Pharmaceutical: 7% range)
  • Increase in sales of generic drugs

Gross profit increased (+ 1.2)

SG&A cost increased (+ 1.0 )

  • R&D expenses decreased (－0.3)
    • Dissolution of ActivX (Mar 2023)
  • SG&A (excluding R&D) increased (+1.2)
    • Increase in license fee, personnel expenses

Operating profit increased (+ 0.2)

FY2022 1Q

FY2023 1Q

3

Consolidated Financial Results

（JPY billions）

FY2022 1Q

FY2023 1Q

Change

（JPY billions）

（Year on Year）

■ Net sales

27.9

(+3.3)

●New drugs (Japan)

18.9

(+2.5）

FY2022 (1Q)

FY2023 (1Q)

・Beova

2.7

⇒

4.2

（ ＋1.5）

・Lasvic

0.4

⇒

1.1

（ ＋0.7）

・Lyfnua

0.1

⇒

0.2

（ ＋0.1）

Net sales

24.6

New drugs (Japan)

16.4

New drugs

0.1

(Overseas)

Generic drugs

8.1

Operating profit

0.5

Ordinary profit

0.8

Profit attributable

1.2

to owner of parent

27.9 ＋3.3

  1. ＋2.5
  1. 0

8.9 ＋0.8

0.7 ＋0.2

0.9 ＋0.1

0.7 ー0.5

・Desalex

1.6

⇒

1.6

（

0）

・Flutiform

2.9

⇒

3.1

（

+0.2）

・Pentasa

3.4

⇒

3.1

（ －0.3）

・Kipres

1.5

⇒

1.3

（ －0.2）

・Mucodyne

0.8

⇒

1.0

（ ＋0.2）

・Nasonex

0.4

⇒

0.2

（ －0.2）

・Uritos

0.2

⇒

0.1

（ －0.1）

●New drugs (Overseas)

0.1

（

0）

●Generic drugs

8.9

（＋0.8）

Increase sales in AG products (Kipres AG, Nasonex AG)

Items launched in June 2023 contribute to sales

■ Operating income

0.7

（+0.2）

●Cost of sales ratio : 56.1％（FY2022 1Q: 55.2％）

[Factors of decrease] Increase in sales of new drugs

[Factors of increase] NHI drug price revisions, sales increase in generic drugs

●R&D : 2.0（FY2022 1Q: 2.3）

Dissolution of ActivX (Mar 2023)

●SG&A (excluding R&D expenses) : 9.5 (FY2022 1Q: 8.3）

Increase in license fees and personnel expenses.

■ Profit attributable to owner of parent

0.7

（－0.5）

FY2022 1Q: Extraordinary profit of gain on insurance of ¥879M regarding a fire at Nishinihon delivery center.

4

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Kyorin Pharmaceutical Co. Ltd. published this content on 02 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2023 07:16:10 UTC.