Sumitomo Pharma : Jul. 31, 2023 Conference on Q1 FY2023 Financial Results

Conference on Q1 FY2023

(April 1 to June 30, 2023)

Financial Results

Sumitomo Pharma Co., Ltd.

July 31, 2023

Disclaimer Regarding Forward-looking Statements

This material contains forecasts, projections, targets, plans, and other forward-looking statements regarding the Group's financial results and other data. Such forward-looking statements are based on the Company's assumptions, estimates, outlook, and other judgments made in light of information available at the time of disclosure of such statements and involve both known and unknown risks and uncertainties.

Accordingly, plans, goals, and other statements may not be realized as described, and actual financial results, success/failure or progress of development, and other projections may differ materially from those presented herein.

Information concerning pharmaceuticals and medical devices (including those under development) contained herein is not intended as advertising or as medical advice.

© Sumitomo Pharma Co., Ltd. All Rights Reserved.

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Financial Results for Q1 FY2023

© Sumitomo Pharma Co., Ltd. All Rights Reserved.

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*1: VS end of FY2022, *2: VS not combination

Financial Results for Q1 FY2023

Sumitomo Pharma America (SMPA) Launches as New Combined Organization

• SMPA launched on July 1, 2023 through consolidation the functions and human resources of Sumitomo Pharma's seven U.S. subsidiaries including Sunovion, Sumitovant, Myovant, Urovant, etc.
• The combination is expected to reduce the total number of employees in North America by approx. 500*1 by the end of FY2023, with cost synergies (SG&A and R&D expenses) of approx. US$260M in FY2023 and US$400M

in FY2024*2

Sumitomo Pharma America, Inc.

• U.S. Flagship Location: Cambridge, Massachusetts, U.S. with additional offices across NA and Europe
• Commercial Products: ORGOVYX®, MYFEMBREE®, GEMTESA®, APTIOM®, RETHYMIC®, and LATUDA®
• R&D & Pipeline: More than 30 assets including small molecule compounds and regenerative medicine/cell therapies in Psychiatry & Neurology such as ulotaront and Oncology as well as Other Areas, with dozens of clinical studies underway

• Number of employees: Approx. 1,700 (as of July 1, 2023)
• Leadership team: Comprised of industry-leading experts with deep life sciences expertise. Additionally, the following three leaders have been appointed Executive Officers of Sumitomo Pharma effective July 1, 2023

		Myrtle Potter
		President & CEO
	Armin Szegedi
Adele Gulfo
CEO of Biopharma		Chief Medical
Commercial Unit		Officer
			© Sumitomo Pharma Co., Ltd. All Rights Reserved. 3

Financial Results for Q1 FY2023

Financial Results for Q1 FY2023 (Core Basis)

The forecasts are not revised

Billions of yen

	Q1YTD	Q1YTD		Change
	FY2022	FY2023
	Value	FX impact	%
	Results	Results
Revenue	159.9	75.7	(84.2)	2.2	(52.7)
Cost of sales	46.1	30.4	(15.6)	(3.2)	(33.9)
Gross profit	113.8	45.3	(68.6)	5.4	(60.2)
SG&A expenses	76.0	61.8	(14.2)	2.4	(18.7)
R&D expenses	24.4	22.8	(1.6)	0.9	(6.6)
Other operating income/expenses	0.0	5.9	5.9	－	－
Core operating profit	13.4	(33.5)	(46.9)	2.2	－
Non-recurring items	1.2	(18.1)	(19.3)
(negative number indicates loss)
Operating profit	14.6	(51.6)	(66.2)		－
Finance income/costs	32.0	20.5	(11.5)
Profit before taxes	46.6	(31.1)	(77.7)		－
Income tax expenses	18.5	7.8	(10.7)
Net profit	28.1	(38.9)	(67.0)		－
Net profit attributable to owners	31.1	(38.9)	(70.0)		－
of the parent

FY2023

May 15	%
forecasts

1. 20.9

1. 23.1

230.0 19.7

1. 28.1

1. 27.2

12.0 49.0

(62.0) 54.1

(16.0)

(78.0)	66.1
(3.0)
(81.0)
(1.0)
(80.0)	48.6
(80.0)	48.6

• Revenue decreased significantly due
  to LATUDA®'s loss of exclusivity in the U.S.
• Share transfer of Sumitomo Pharma Animal Health Co., Ltd. Included in Other operating income/ expenses
• Business structure improvement expenses in North America recognized as Non- recurring item

From Q1 FY2023, segments have been changed from four (Japan, North America, China, and Other Regions) to three

Average rates:	Period end rates:
Q1 FY2022 Results : 1US$ = ¥129.73, 1RMB = ¥19.60	As of the end of March 2023 : 1US$ = ¥133.54, 1RMB = ¥19.42
Q1 FY2023 Results : 1US$ = ¥137.50, 1RMB = ¥19.57	As of the end of June 2023 : 1US$ = ¥144.99, 1RMB = ¥19.95
FY2023 forecasts : 1US$ = ¥130.00, 1RMB = ¥19.50

(Japan, North America, and Asia)

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