Astellas Pharma : Supplementary Documents (Q1/FY2021)

Supplementary Documents [IFRS]

Financial results for the first three months of the fiscal year 2021 (FY2021)

Astellas Pharma Inc.

• Q1/FY2021 Financial Results
• Pipeline list

Cautionary Notes

-

In this material, statements made with respect to current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Astellas. These statements are based on management's current assumptions and beliefs in light of the information currently available to it and involve known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: (i) changes in general economic conditions and in laws and regulations, relating to pharmaceutical markets,

1. currency exchange rate fluctuations, (iii) delays in new product launches, (iv) the inability of Astellas to market existing and new products effectively, (v) the inability of Astellas to continue to effectively research and develop products accepted by customers in highly competitive markets, and (vi) infringements of Astellas' intellectual property rights by third parties.
   Information about pharmaceutical products (including products currently in development) which is included in this material is not intended to constitute an advertisement or medical advice.

S-1

1. Consolidated Results (Full Basis)

		Change from
Unit: B¥	Initial Forecasts Revised Forecasts	FY20

	FY20	FY21	Change	Change		FY20		FY21	FY21	Change
	APR. - JUN.	APR. - JUN.		(%)		Full Year		Full Year	Full Year	(%)
Revenue	307.0	326.1	19.2	6.2%		1,249.5		1,323.0	1,323.0	5.9%
Cost of sales	59.7	62.2	2.6	4.3%		246.1
Ratio to Revenue	19.4%	19.1%				19.7%
Gross profit	247.3	263.9	16.6	6.7%		1,003.5
SG&A expenses	120.8	137.1	16.3	13.5%		504.3		541.0	541.0	7.3%
Ratio to Revenue	39.3%	42.0%				40.4%		40.9%	40.9%
Advertising and Sales Promotion	10.5	14.1	3.6	34.2%		60.6
XTANDI co-promotion fee in the United States	31.5	34.5	3.0	9.4%		120.2
Personnel expenses	45.7	49.0	3.3	7.3%		182.2
Other	33.1	39.5	6.4	19.5%		141.4
R&D expenses	57.3	58.3	1.0	1.8%		224.5		242.0	242.0	7.8%
Ratio to Revenue	18.7%	17.9%				18.0%		18.3%	18.3%
Amortisation of intangible assets	5.9	6.0	0.1	1.8%		23.8
Share of profit (loss) of investments accounted for using equity method	-0.0	0.3	0.3	-		0.5
Other income	2.2	0.4	-1.8	-82.0%		7.6
Net foreign exchange gains	1.1	0.3	-0.8	-70.5%		-
Other expense	4.8	27.1	22.3	465.2%		123.0
Impairment losses	3.3	26.1	22.8	690.7%		101.7
Operating profit	60.8	36.1	-24.7	-40.7%		136.1		265.0	227.0	66.8%
Ratio to Revenue	19.8%	11.1%				10.9%		20.0%	17.2%
Finance income	0.4	1.5	1.1	284.3%		11.6
Finance expenses	1.0	1.7	0.8	79.6%		2.3
Profit before tax	60.2	35.8	-24.4	-40.5%		145.3		263.0	225.0	54.8%
Ratio to Revenue	19.6%	11.0%				11.6%		19.9%	17.0%
Income tax expense	9.8	5.1	-4.7	-47.7%		24.7
Profit	50.4	30.7	-19.7	-39.1%		120.6		209.0	183.0	51.8%
Ratio to Revenue	16.4%	9.4%				9.7%		15.8%	13.8%
Comprehensive income	55.4	36.2	-19.2	-34.7%		181.5

S-2

2. Consolidated Results (Core Basis)											Change from
		Unit: B¥						Initial Forecasts	FY20
	FY20	FY21	Change	Change			FY20		FY21	Change
	APR. - JUN.	APR. - JUN.			(%)			Full Year		Full Year	(%)
Revenue	307.0	326.1	19.2		6.2%			1,249.5		1,323.0	5.9%
Cost of sales	59.7	62.2	2.6		4.3%			246.1
Ratio to Revenue	19.4%	19.1%					19.7%
Gross profit	247.3	263.9	16.6		6.7%			1,003.5
SG&A expenses	120.8	137.1	16.3		13.5%			504.3		541.0	7.3%
Ratio to Revenue	39.3%	42.0%					40.4%		40.9%
Advertising and Sales Promotion	10.5	14.1	3.6		34.2%		60.6
XTANDI co-promotion fee in the United States	31.5	34.5	3.0		9.4%		120.2
Personnel expenses	45.7	49.0	3.3		7.3%		182.2
Other	33.1	39.5	6.4		19.5%		141.4
R&D expenses	57.3	58.3	1.0		1.8%		224.5		242.0	7.8%
Ratio to Revenue	18.7%	17.9%					18.0%		18.3%
Amortisation of intangible assets	5.9	6.0	0.1		1.8%		23.8
Share of profit (loss) of investments accounted for using equity method	-0.0	0.3	0.3		-		0.5
Operating profit	63.4	62.8	-0.6		-0.9%			251.4		270.0	7.4%
Ratio to Revenue	20.6%	19.3%					20.1%		20.4%
Finance income	0.4	1.5	1.1		284.3%			11.6
Finance expenses	1.0	1.7	0.8		79.6%		2.3
Profit before tax	62.8	62.6	-0.2		-0.4%			260.6
Ratio to Revenue	20.5%	19.2%					20.9%
Income tax expense	10.8	13.3	2.5		23.3%			50.7
Profit	52.0	49.2	-2.7		-5.3%			209.9		213.0	1.5%
Ratio to Revenue	16.9%	15.1%					16.8%		16.1%
3. Exchange Rate					Unit: yen					Initial Forecasts
	FY20	FY21	FY20		FY21			FY20		FY21
	APR. - JUN.Ave. APR. - JUN.Ave.	End	Q1 End			Full Year		Full Year
USD/Yen	108	109	111		111			106		110
EUR/Yen	118	132	130		132			124		130

• Fx impacts: Revenue +13.6 billion yen and Core operating profit +6.1 billion yen
• Fx impact on elimination of unrealized gain: COGs ratio +0.1ppt

S-3

4. Reconciliation of Full Basis to Core Basis
						Unit: B¥
		FY20			FY21
		APR. - JUN.			APR. - JUN.
	Full basis	Adjustment	Core basis	Full basis	Adjustment	Core basis
Revenue	307.0	-	307.0	326.1	-	326.1
Cost of sales	59.7	-	59.7	62.2	-	62.2
Gross profit	247.3	-	247.3	263.9	-	263.9
SG&A expenses	120.8	-	120.8	137.1	-	137.1
R&D expenses	57.3	-	57.3	58.3	-	58.3
Amortisation of intangible assets	5.9	-	5.9	6.0	-	6.0
Share of profit (loss) of investments accounted	-0.0	-	-0.0	0.3	-	0.3
for using equity method
Other income *	2.2	-2.2	-	0.4	-0.4	-
Other expenses *	4.8	-4.8	-	27.1	-27.1	-
Operating profit	60.8	2.6	63.4	36.1	26.7	62.8
Finance income	0.4	-	0.4	1.5	-	1.5
Finance expenses	1.0	-	1.0	1.7	-	1.7
Profit before tax	60.2	2.6	62.8	35.8	26.7	62.6
Income tax expense	9.8	1.0	10.8	5.1	8.2	13.3
Profit	50.4	1.6	52.0	30.7	18.6	49.2

• "Other income" and "Other expenses" are excluded from Full basis results.
  "Other income" and "Other expenses" include gain/loss on sale and disposal of property, plant and equipment, impairment losses, restructuring costs, litigation costs and foreign exchange gains/losses, etc.

S-4

5. Revenue by Region									Change from
		Unit: B¥					Initial Forecasts	FY20
		FY20	FY21	Change	Change		FY20		FY21	Change
		APR. - JUN.	APR. - JUN.		(%)		Full Year		Full Year	(%)
Revenue	307.0	326.1	19.2	6.2%		1,249.5		1,323.0	5.9%
	Japan	77.8	67.5	-10.3	-13.2%		279.1		249.8	-10.5%
	Ratio to Revenue	25.3%	20.7%			22.3%	18.9%
	United States	117.2	133.6	16.5	14.1%	473.2	544.6	15.1%
	Ratio to Revenue	38.2%	41.0%			37.9%	41.2%
	Established Markets	64.0	78.0	14.0	21.8%	293.2	331.9	13.2%
	Ratio to Revenue	20.9%	23.9%			23.5%	25.1%
	Greater China	14.2	16.4	2.2	15.5%	59.3	63.8	7.7%
	Ratio to Revenue	4.6%	5.0%			4.7%	4.8%
	International Markets	30.2	27.8	-2.4	-8.1%	111.1	122.7	10.4%
	Ratio to Revenue	9.8%	8.5%			8.9%	9.3%
	Others	3.6	2.8	-0.8	-21.9%	33.6	10.1	-70.1%
	Ratio to Revenue	1.2%	0.9%			2.7%	0.8%

• Established Markets: Europe, Canada, Australia
• Greater China: China, Hong Kong, Taiwan
• International Markets: Russia, Latin America, Middle East, Africa, South East Asia, South Asia, Korea, Export sales, etc .

6. Addition to Property, Plant and Equipment

Depreciation/Amortisation			Unit: B¥					Initial Forecasts	Change from
								FY20
		FY20	FY21	Change	Change		FY20		FY21	Change
		APR. - JUN. APR. - JUN.		(%)		Full Year		Full Year	(%)
Addition to Property, Plant and Equipment
	Consolidated	7.1	5.2	-1.9	-27.3%		33.7		36.0	6.8%
Depreciation (PP&E)
	Consolidated	10.0	9.9	-0.1	-0.6%		40.0		43.0	7.5%
Amortisation of Intangible Assets (incl. software, etc.)
	Consolidated	8.0	8.2	0.2	2.6%		32.7		39.0	19.4%

- Addition to Property, Plant and Equipment does not include right-of-use asset .

S-5