Chugai Pharmaceutical : Conference on FY2022.12 2Q Financial Results

Conference on FY2022.12 2Q Financial Results

CHUGAI PHARMACEUTICAL CO., LTD.

21 July 2022

Important Reminder

Forward-Looking Statements

This presentation may include forward-looking statements pertaining to the business and prospects of Chugai Pharmaceutical Co., Ltd. (the "Company"). These statements reflect the Company's current analysis of existing information and trends. Actual results may differ from expectations based on risks and uncertainties that may affect the Company's businesses.

Core Results

Chugai discloses its results on a Core basis from 2013 in conjunction with its transition to IFRS. Core results are the results after adjusting non-recurring items recognized by Chugai to IFRS results. Chugai's recognition of non-recurring items may differ from that of Roche due to the difference in the scale of operations, the scope of business and other factors. Core results are used by Chugai as an internal performance indicator, for explaining the status of recurring profits both internally and externally, and as the basis for payment-by-results.

Note:

• Amounts shown in this report are rounded to the nearest 0.1 billion yen

• Variance and % are calculated based on the amounts shown

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Conference on FY2022.12 2Q Financial Results

Agenda

01	FY2022 Q2 Overview	Dr. Osamu Okuda
		President & CEO

02 FY2022 Q2 Consolidated Financial Overview (Core) Toshiaki Itagaki

Director, Executive Vice President & CFO

03

Overview of Development Pipeline

Tetsuya Yamaguchi

Executive Vice President, Head of Project &

Lifecycle Management Unit

3

FY2022 Q2 Overview

Dr. Osamu Okuda

President & CEO

FY2022 Q2 Overview

Financial Overview

• Significant increases in revenues and profits as expected due to the contribution of RON, in addition to strong sales of new products and exports to Roche, etc.
• The impact of yen depreciation* is expected on some second-half year costs denominated in foreign currencies, but the company will continue aiming to achieve its initial forecast

	Core	2021		2022	Growth	2022	Progress	
	Jan -Jun		Jan -Jun	Jan - Dec
	(billions of JPY)	actual		actual			forecast	(%)
	Revenues	390.2		504.3	+114.1	+29.2%	1150.0	43.9%
	Domestic sales	203.4		273.8	+70.4	+34.6%	646.3	42.4%
	Overseas sales	100.7		179.0	+78.3	+77.8%	385.2	46.5%	
	ROOI	86.1		51.4	-34.7	-40.3%	118.5	43.4%
	Operating profit	165.8		201.4	+35.6	+21.5%	440.0	45.8%	
	Operating margin	42.5%		39.9%	-2.6%pts		38.3%	-
	Net income	121.7		144.7	+23.0	+18.9%	312.5	46.3%	
	EPS (yen)	73.99		87.97	+13.98	+18.9%	190.00	46.3%
ROOI: Royalty and other operating income	RON: Ronapreve	HEM: Hemlibra ACT: Actemra

*Supply of RON to the Japanese government (denominated in Swiss francs) in the second half of the year is not hedged against exchange rates at the beginning of the fiscal year, therefore cost of sales is expected to be higher than the initial assumption due to yen depreciation.

Despite the impact of the NHI drug price revision and other factors, domestic sales grew as expected due to contributions from new products. RON was not delivered to the government in April-June as initially expected.

Overseas sales increased significantly mainly due to HEM and ACT exports to Roche as initially expected.

Significant decrease in ROOI associated with initial shipping inventory of HEM Russia/Ukraine situation had no negative impact on performance and limited impact on development activities

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