Nippon Shinyaku : Ending March 2024(FY2023)Presentation Material for IR Meeting (Script)P

Outline of Consolidated Financial Results

for the Year Ended March 31, 2024

May 14, 2024

NIPPON SHINYAKU CO., LTD.

FY2023 RESULTS AND

FY2024 FULL-YEAR FORECASTS

Toru Nakai

Representative Director, President

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FY2023 Summary

（Million yen）	FY2022		FY2023		YoY Change
Results	Ratio	Results	Ratio	Amt	%
Revenue	144,175	100.0%	148,255	100.0%	+4,080	+2.8%
(Pharmaceuticals)	(121,988)	(84.6%)	(125,105)	(84.4%)	(+3,116)	(+2.6%)
(Functional Food)	(22,187)	(15.4%)	(23,150)	(15.6%)	(+963)	(+4.3%)
Cost of sales	55,980	38.8%	50,234	33.9%	-5,746	-10.3%
SG&A expenses	34,812	24.1%	34,959	23.6%	+146	+0.4%
R&D expenses	24,135	16.7%	31,676	21.4%	+7,541	+31.2%
Other income	1,908	1.3%	3,163	2.1%	+1,254	+65.7%
(Foreign exchange gain)	(1,193)	(0.8%)	(2,486)	(1.7%)	(+1,292)	(+108.4%)
Other expenses	1,106	0.8%	1,252	0.8%	+146	+13.2%
Operating profit	30,049	20.8%	33,295	22.5%	+3,245	+10.8%
Finance income	575	0.4%	650	0.4%	+75	+13.1%
Finance costs	136	0.1%	329	0.2%	+193	+142.4%
Profit before tax	30,489	21.1%	33,616	22.7%	+3,127	+10.3%
Income tax expense, etc	7,676	5.3%	7,765	5.2%	+88	+1.2%
Profit attributable	22,812	15.8%	25,851	17.4%	+3,038	+13.3%
to owners of parent

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Segmental Review - Pharmaceuticals -

（Million yen）

121,988

- 5,612

Revenues from the

licensing of industrial+9,590 property rights

- 861

125,105

Ethical Drugs 76,141 million yen

(- 5,612 million yen, - 6.9%, YoY)

• Sales growth of Uptravi, Viltepso, etc.
• Decrease in sales of Vidaza, Tramal/Onetram, etc.
• Impact of NHI price revision

Revenues from the industrial property rights 40,304 million yen

(＋9,590 million yen, ＋31.2%, YoY)

• Royalty revenue growth due to overseas sales of Uptravi

Profit in co-promotion 8,658 million yen ( - 861 million yen, - 9.0%, YoY)

• Sales growth of Opsumit and Erleada
• End of co-promotion of Zytiga

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Sales Trends of Viltepso® (viltolarsen)

（Million yen）	FY2022	FY2023	YoY Change
Results	Results	Amt	%
					✓The number of patients currently being administered is more than two-thirds of
Japan	4,139	4,407	+268	+6.5%	the peak number of 128 patients in the data from Chuikyo (Central Social
					Insurance Medical Council) .
					✓The number of patients receiving and wishing to receive Viltepso is increasing.
Viltepso U.S.	10,201	13,123	+2,922	+28.6%	✓The results of P2 trial (Galactic53 trial) were presented as a poster presentation
					at 2024 MDA conference.
total	14,341	17,530	+3,189	+22.2%

Exchange rate	FY2022	FY2023
Actual rate	Actual rate
1USD	135.5yen	144.6yen

Japan

U.S.

（Million yen）	5

Segmental Review - Functional Food -

（Million yen）

22,187

+216

+199

+477

+129

- 60

23,150

Protein preparations 15,600 million yen (+216 million yen, +1.4%, YoY)

• Steady sales growth in protein preparations due to end of pandemic impact
• Increase in selling prices due to higher raw material prices

Preservatives 3,105 million yen (+199 million yen, +6.9%, YoY)

• Focus on new customer acquisition and extended use

Supplements 1,905 million yen

(+477 million yen, +33.4%, YoY)

• Sales growth of WINZONE Protein and other products due to increased sporting events nationwide

Health food ingredients 1,248 million yen (+129 million yen, +11.6%, YoY)

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Operating Profit

（Million yen）

30,049

+4,080

+5,746

- 146

- 7,541

+1,254

• 146
  33,295

Cost of sales 50,234 million yen

(- 5,746 million yen, -10.3%, YoY) The ratio was improved by 4.9 points YoY.

• Negative impact of NHI price revision
• Cost of sales ratio improvement due to factors such as revenues from industrial property rights and the change in sales segment mix (pharma vs. food)

SG&A expenses 34,959 million yen (+146 million yen, +0.4%, YoY)

• Increase in labor costs
• Decrease in commission for promotional activities of Tramal/Onetram

R&D expenses 31,676 million yen (+7,541 million yen, +31.2%, YoY)

• Increase in contract research expenses (nucleic acid drugs, etc.)

Other income 3,163 million yen (+1,254 million yen, +65.8%, YoY)

• Foreign exchange gains (+1,292 million yen)

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Business Forecast for FY2024 (consolidated)

(Million Yen）	FY2023		FY2024			YoY Change
Results	Ratio	Forecast	Ratio		Amt	%
Revenue	148,255	100.0%	150,000	100.0%		+1,745	+1.2%
(Pharmaceuticals)	(125,105)	(84.4%)	(128,500)	(85.7%)		(+3,395)	(+2.7%)
(Functional Food)	(23,150)	(15.6%)	(21,500)	(14.3%)		(-1,650)	(-7.1%)
Cost of sales	50,234	33.9%	48,900	32.6%		-1,334	-2.7%
SG&A expenses	34,959	23.6%	38,700	25.8%		+3,741	+10.7%
R&D expenses	31,676	21.4%	31,500	21.0%		-176	-0.6%
Other income	3,163	2.1%	500	0.3%		-2,663	-84.2%
Other expenses	1,252	0.8%	400	0.3%		-852	-68.1%
Operating profit	33,295	22.5%	31,000	20.7%		-2,295	-6.9%
Finance income	650	0.4%	600	0.4%		-50	-7.8%
Finance costs	329	0.2%	100	0.1%		-229	-69.7%
Profit before tax	33,616	22.7%	31,500	21.0%		-2,116	-6.3%
Income tax expense, etc	7,765	5.2%	7,000	4.7%		-765	-9.9%
Profit attributable	25,851	17.4%	24,500	16.3%		-1,351	-5.2%
to owners of parent
Exchange rate	FY2023		FY2024
Actual rate	Forecast rate
1USD	144.6yen	140.0yen			8

Segmental Forecast - Pharmaceuticals -

（Million yen）	FY2023		FY2024		YoY Change
Results	Ratio	Forecast	Ratio	Amt	%
Ethical drugs	76,141	60.9%	77,700	60.5%	+1,559	+2.0%
Revenue from the licensing of	40,304	32.2%	41,700	32.4%	+1,396	+3.5%
industrial property rights
Profit in co-promotion	8,658	6.9%	9,100	7.1%	+442	+5.1%
Revenue	125,105	100.0%	128,500	100.0%	+3,395	+2.7%

Despite the impacts from NHI price revision and the competitions with generics, we expect an increase in revenues mainly due to the growth of Viltepso and Uptravi as well as growth in royalty income associated with overseas sales of Uptravi.

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Segmental Forecast - Functional Food -

（Million yen）	FY2023		FY2024		YoY Change
Results	Ratio	Forecast	Ratio	Amt	%
Protein preparations	15,600	67.4%	13,000	60.5%	-2,600	-16.7%
Preservatives	3,105	13.4%	3,200	14.9%	+95	+3.0%
Supplements	1,905	8.2%	3,100	14.4%	+1,195	+62.7%
Health food ingredients	1,248	5.4%	1,100	5.1%	-148	-11.9%
Others	1,291	5.6%	1,100	5.1%	-191	-14.8%
Revenue	23,150	100.0%	21,500	100.0%	-1,650	-7.1%

Although we will further focus on development and introduction of new products and strengthen sales efforts in marketed products, a decrease in sales is expected

due to the impact from declining prices of some products.

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