Astellas Pharma : Supplementary Documents (Q3/FY2021)

Supplementary Documents [IFRS]

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

Astellas Pharma Inc.

• Q3/FY2021 Financial Results
• • Nine months ended December 31, 2021
  • Three months ended December 31, 2021
• Pipeline list

Cautionary Notes

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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.

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[Nine months ended December 31, 2021]

1. Consolidated Results (Full Basis)

		Change from
Unit: B¥	Forecasts	FY20

	FY20	FY21	Change	Change		FY20		FY21	Change
	APR. - DEC.	APR. - DEC.		(%)		Full Year		Full Year	(%)
Revenue	940.9	992.3	51.4	5.5%		1,249.5		1,323.0	5.9%
Cost of sales	187.7	194.1	6.4	3.4%		246.1
Ratio to Revenue	20.0%	19.6%				19.7%
Gross profit	753.2	798.2	45.0	6.0%		1,003.5
SG&A expenses	363.0	406.4	43.4	11.9%		504.3		541.0	7.3%
Ratio to Revenue	38.6%	41.0%				40.4%		40.9%
XTANDI co-promotion fee in the United states	90.2	108.7	18.5	20.5%		120.2
Personnel expenses	133.9	143.0	9.2	6.9%		182.2
Advertising and Sales Promotion and Other	139.0	154.7	15.7	11.3%		201.9
R&D expenses	168.8	177.6	8.8	5.2%		224.5		242.0	7.8%
Ratio to Revenue	17.9%	17.9%				18.0%		18.3%
Amortisation of intangible assets	17.3	20.2	3.0	17.1%		23.8
Gain on divestiture of intangible assets	-	24.1	24.1	-		-
Share of profit (loss) of investments accounted for using equity method	-0.3	2.0	2.3	-		0.5
Other income	7.0	4.2	-2.8	-40.3%		7.6
Net foreign exchange gains	-	0.6	0.6	-		-
Fair value remeasurements on contingent consideration	3.9	2.2	-1.6	-42.7%		3.6
Other expense	51.3	54.9	3.6	6.9%		123.0
Impairment losses	36.7	26.7	-9.9	-27.1%		101.7
Restructuring costs	2.9	18.3	15.4	542.0%		9.3
Net foreign exchange losses	4.2	-	-4.2	-100.0%		2.3
Fair value remeasurements on contingent consideration	4.4	8.7	4.3	97.8%		6.0
Operating profit	159.5	169.4	9.9	6.2%		136.1		218.0	60.2%
Ratio to Revenue	16.9%	17.1%				10.9%		16.5%
Finance income	6.5	2.3	-4.2	-64.5%		11.6
Finance expenses	1.7	4.3	2.5	144.8%		2.3
Profit before tax	164.2	167.4	3.2	1.9%		145.3		216.0	48.6%
Ratio to Revenue	17.5%	16.9%				11.6%		16.3%
Income tax expense	31.3	34.9	3.6	11.5%		24.7
Profit	132.9	132.5	-0.4	-0.3%		120.6		174.0	44.3%
Ratio to Revenue	14.1%	13.4%				9.7%		13.1%
Comprehensive income	155.9	164.5	8.6	5.5%		181.5

S-2

2. Consolidated Results (Core Basis)												Change from
		Unit: B¥						Forecasts		FY20
	FY20	FY21	Change	Change			FY20		FY21		Change
	APR. - DEC.	APR. - DEC.			(%)			Full Year		Full Year	(%)
Revenue	940.9	992.3	51.4		5.5%			1,249.5		1,323.0	5.9%
Cost of sales	187.7	194.1	6.4		3.4%			246.1
Ratio to Revenue	20.0%	19.6%					19.7%
Gross profit	753.2	798.2	45.0		6.0%			1,003.5
SG&A expenses	363.0	406.4	43.4		11.9%			504.3		541.0	7.3%
Ratio to Revenue	38.6%	41.0%					40.4%		40.9%
XTANDI co-promotion fee in the United states	90.2	108.7	18.5		20.5%		120.2
Personnel expenses	133.9	143.0	9.2		6.9%		182.2
Advertising and Sales Promotion and Other	139.0	154.7	15.7		11.3%		201.9
R&D expenses	168.8	177.6	8.8		5.2%		224.5		242.0	7.8%
Ratio to Revenue	17.9%	17.9%					18.0%		18.3%
Amortisation of intangible assets	17.3	20.2	3.0		17.1%		23.8
Gain on divestiture of intangible assets	-	24.1	24.1		-		-
Share of profit (loss) of investments accounted for using equity method	-0.3	2.0	2.3		-		0.5
Operating profit	203.7	220.0	16.3		8.0%			251.4		270.0	7.4%
Ratio to Revenue	21.7%	22.2%					20.1%		20.4%
Finance income	6.5	2.3	-4.2		-64.5%			11.6
Finance expenses	1.7	4.3	2.5		144.8%		2.3
Profit before tax	208.5	218.1	9.6		4.6%			260.6
Ratio to Revenue	22.2%	22.0%					20.9%
Income tax expense	41.9	48.4	6.5		15.6%			50.7
Profit	166.6	169.7	3.0		1.8%			209.9		213.0	1.5%
Ratio to Revenue	17.7%	17.1%					16.8%		16.1%
3. Exchange Rate					Unit: yen					Forecasts
	FY20	FY21	FY20		FY21			FY20		FY21
	APR. - DEC.Ave.	APR. - DEC.Ave.	End	Q3 End			Full Year		Full Year
USD/Yen	106	111	111		115			106		110
EUR/Yen	122	131	130		131			124		130

• Fx impacts: Revenue +42.8 billion yen and Core operating profit +15.4 billion yen
• Fx impact on elimination of unrealized gain: COGs ratio +0.2ppt

S-3

4. Reconciliation of Full Basis to Core Basis
						Unit: B¥
		FY20			FY21
		APR. - DEC.			APR. - DEC.
	Full basis	Adjustment	Core basis	Full basis	Adjustment	Core basis
Revenue	940.9	-	940.9	992.3	-	992.3
Cost of sales	187.7	-	187.7	194.1	-	194.1
Gross profit	753.2	-	753.2	798.2	-	798.2
SG&A expenses	363.0	-	363.0	406.4	-	406.4
R&D expenses	168.8	-	168.8	177.6	-	177.6
Amortisation of intangible assets	17.3	-	17.3	20.2	-	20.2
Gain on divestiture of intangible assets	-	-	-	24.1	-	24.1
Share of profit (loss) of investments accounted	-0.3	-	-0.3	2.0	-	2.0
for using equity method
Other income *	7.0	-7.0	-	4.2	-4.2	-
Other expenses *	51.3	-51.3	-	54.9	-54.9	-
Operating profit	159.5	44.3	203.7	169.4	50.7	220.0
Finance income	6.5	-	6.5	2.3	-	2.3
Finance expenses	1.7	-	1.7	4.3	-	4.3
Profit before tax	164.2	44.3	208.5	167.4	50.7	218.1
Income tax expense	31.3	10.6	41.9	34.9	13.5	48.4
Profit	132.9	33.7	166.6	132.5	37.2	169.7

• "Other income" and "Other expenses" are excluded from Core 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.

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5. Revenue by Region									Change from
		Unit: B¥					Forecasts	FY20
		FY20	FY21	Change	Change		FY20		FY21	Change
		APR. - DEC.	APR. - DEC.		(%)		Full Year		Full Year	(%)
Revenue	940.9	992.3	51.4	5.5%		1,249.5		1,323.0	5.9%
	Japan	221.8	203.2	-18.6	-8.4%		279.1		252.1	-9.7%
	Ratio to Revenue	23.6%	20.5%				22.3%		19.0%
	United States	355.8	407.9	52.1	14.7%		473.2		552.5	16.8%
	Ratio to Revenue	37.8%	41.1%				37.9%		41.8%
	Established Markets	218.0	239.2	21.3	9.8%		293.2		322.1	9.9%
	Ratio to Revenue	23.2%	24.1%				23.5%		24.3%
	Greater China	43.8	50.3	6.5	14.8%		59.3		65.0	9.6%
	Ratio to Revenue	4.7%	5.1%				4.7%		4.9%
	International Markets	87.6	83.0	-4.6	-5.3%		111.1		122.5	10.2%
	Ratio to Revenue	9.3%	8.4%				8.9%		9.3%
	Others	13.9	8.6	-5.3	-38.0%		33.6		8.9	-73.5%
	Ratio to Revenue	1.5%	0.9%				2.7%		0.7%
- 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									Change from
Depreciation/Amortisation			Unit: B¥					Forecasts
								FY20
		FY20	FY21	Change	Change		FY20		FY21	Change
		APR. - DEC.	APR. - DEC.		(%)		Full Year		Full Year	(%)
Addition to Property, Plant and Equipment
	Consolidated	23.9	22.3	-1.5	-6.4%		33.7		34.0	0.9%
Depreciation (PP&E)
	Consolidated	30.1	30.3	0.3	0.9%		40.0		42.0	5.0%
Amortisation of Intangible Assets (incl. software, etc.)
	Consolidated	24.0	28.3	4.2	17.6%		32.7		38.0	16.3%

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

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