Eisai : FY 2022 (Ending March 31, 2023) First Quarter Financial Results Reference Data

Securities Code: 4523

FY 2022 (Ending March 31, 2023)

First Quarter Financial Results

Reference Data

August 5, 2022

Eisai Co., Ltd.

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Forward-Looking Statements and Risk Factors

Materials and information provided in this announcement include current forecasts, targets, evaluations, estimates, assumptions that are accompanied by risks, and other matters that are based on uncertain factors. Accordingly, it is possible that actual results will deviate significantly from forecasts, etc., due to changes to a variety of factors. These risks and uncertainties include general industry and market conditions, fluctuation of interest rates and currency exchange rates, and other aspects of economic conditions in Japan and internationally.

Risks and uncertainties that could cause significant fluctuations in the results of the Group or have a material effect on investment decisions are as follows. However, these do not cover all of the risks and uncertainties faced by the Group, and it is possible that they will be affected in the future by other factors that cannot be foreseen, or are not deemed to be important, at this point in time.

These are judgments as of the time of the announcement, and statements in the text regarding the future are not guarantees that they will occur or be achieved.

Risks factors include risks related to management based on the Corporate Concept, risks related to maximizing the value of next-generation Alzheimer's Disease treatments, risks related to maximizing the value of Lenvima, risks related to partnership model, risks related to digital transformation, risks related to uncertainties in new drug development, risks related to side effects, risks related to product quality and stable supply, risks related to intellectual property, risks related to litigations, risks related to data reliability, risks related to trends to contain medical costs, risks related to succession, risks related to acquiring and developing human resources, risks related to information security, risks related to COVID-19, risks related to climate change, risks related to impairment of goodwill and intangible assets.

This English presentation was translated from the original Japanese version. In the event of any inconsistency between the statements in the two versions, the statements in the Japanese version shall prevail.

Contents

1.	Consolidated Statement of Income		--------------------	1
2.	Segment Information			--------------------	2
3.	Financial Results by Reporting Segment		--------------------	3
4.	Revenue from Major Products			--------------------	7
5.	Revenue Forecasts by Reporting Segment		--------------------	9
6.	Consolidated Statement of Comprehensive Income	--------------------	10
7.	Consolidated Statement of Cash Flows		--------------------	11
8.	Capital Expenditures, Depreciation and Amortization	--------------------	12
9.	Consolidated Statement of Financial Position	--------------------	12
10. Changes in Quarterly Results			--------------------	14
11. Major R&D Pipeline			--------------------	17
Currency Exchange Rates
			US	EU	UK	China
			(USD/JPY)	(EUR/JPY)	(GBP/JPY)	(RMB/JPY)
FY 2021 Q1	Quarterly Average Rate	109.49	131.96	153.20	16.95
		Quarter End Rate	110.58	131.58	153.16	17.11
FY 2021	Yearly Average Rate	112.37	130.56	153.55	17.51
Year End Rate	122.39	136.70	160.89	19.26
FY 2022 Q1	Quarterly Average Rate	129.57	138.11	162.96	19.57
		Quarter End Rate	136.68	142.67	165.71	20.38
FY 2022	Forecast Rate	125.00	130.00	151.50	19.00

• Eisai Co., Ltd. ("the Company") discloses its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS).
• Eisai Group's ("the Group") business is comprised of pharmaceutical business and other business. The pharmaceutical business is organized into the following six reporting segments in this report: Japan, Americas (North America), China, EMEA (Europe, the Middle East, Africa, Russia, and Oceania), Asia and Latin America (primarily South Korea, Taiwan, India, ASEAN, Central and South America), and OTC and others (Japan).
  Effective from April 1, 2022, Hong Kong has been changed from Asia and Latin America pharmaceutical business to China pharmaceutical business. This change has been reflected in the segment information for FY 2021.
• As described on page 18 of Conslidated Financial Report, Supplemental Materials, the figures for FY2021 have been revised for retroactive application due to changes in accounting policies.
• All amounts are rounded to the nearest specified unit.

August 5, 2022 / Eisai Co., Ltd.

1. Consolidated Statement of Income

			FY 2021			FY 2022
	Q1		Ratio (%)		Full year Ratio (%)	Q1 Ratio (%) YOY (%) Diff.
Revenue	198.9	100.0		756.2	100.0	184.3	100.0	92.6	(14.6)
Cost of sales	39.2	19.7		174.8	23.1	47.4	25.7	120.8	8.2
Gross profit	159.6	80.3		581.4	76.9	136.9	74.3	85.7	(22.8)
Selling, general and administrative expenses	74.8	37.6		366.4	48.5	92.3	50.1	123.4	17.5
Selling expenses	32.4	16.3		190.4	25.2	50.2	27.3	155.0	17.8
Personnel expenses	22.7	11.4		101.3	13.4	24.0	13.0	105.9	1.3
Administrative and other expenses	19.7	9.9		74.8	9.9	18.1	9.8	91.6	(1.7)
Research and development expenses	41.8	21.0		171.7	22.7	38.5	20.9	92.1	(3.3)
Other income	13.4	6.8		14.6	1.9	2.5	1.3	18.3	(11.0)
Other expenses	1.1	0.6		4.1	0.5	1.1	0.6	94.4	(0.1)
Operating profit	55.3	27.8		53.7	7.1	7.4	4.0	13.4	(47.9)
Financial income	0.7	0.4		2.4	0.3	2.7	1.5	359.7	1.9
Financial costs	0.4	0.2		1.7	0.2	0.4	0.2	108.8	0.0
Profit before income taxes	55.7	28.0		54.5	7.2	9.7	5.3	17.4	(46.0)
Income taxes	13.5	6.8		8.7	1.2	(18.2)	(9.9)	－	(31.7)
Profit for the period	42.3	21.2		45.7	6.0	28.0	15.2	66.2	(14.3)
Profit for the period attributable to
Owners of the parent	42.1	21.2		48.0	6.3	26.9	14.6	63.9	(15.2)
Non-controlling interests	0.1	0.1		(2.2)	(0.3)	1.1	0.6	746.1	0.9
Comprehensive income for the period	42.4	21.3		90.8	12.0	79.7	43.3	188.1	37.3
Earnings per share (EPS, yen)	146.89	167.27	93.81
Dividend per share (DPS, yen)		－	160.0		－
Return on equity (ROE, %)		－	6.6		－
Dividends on equity ratio (DOE, %)		－	6.3		－

• Full year estimation for other income has had other expenses deducted from it.
• EPS: Earnings Per Share attributable to owners of the parent (basic).

(billions of yen)

FY 2022

Full year Ratio (%) forecast

1. 100.0

1. 22.9

539.5 77.1

1. 48.4

• －
• －
• －

1. 22.7

1. 1.9

• －

55.0 7.9

• －
• －

56.5 8.1

• －

58.0 8.3

57.0 8.1

• －

197.80

160.0

7.5

6.1

Notes

Revenue	Significant growth of the anticancer agent Lenvima: 66.3 billion yen (the same period in previous fiscal year: 44.2 billion
	yen)
	Recording of an upfront payment from Bristol Myers Squibb under strategic collaboration for antibody drug conjugate
	MORAb-202: 49.6 billion yen in the same period of the previous fiscal year
Selling, general and administrative expenses	Recording of expenses regarding shared profit of Lenvima paid to Merck & Co., Inc., Rahway, NJ, USA.: 31.7 billion yen
	(the same period in previous fiscal year: 19.8 billion yen)
Research and development expenses	Controlling of the expenses through the partnership model (partner's burden: 17.5 billion yen (the same period in
	previous fiscal year: 10.8 billion yen)) including recording of reversal of 3.2 billion yen as regulatory milestone payments
	from Merck & Co., Inc., Rahway, NJ, USA due to obtaining approval for Lenvima's combination treatment for advanced
	renal cell carcinoma in Europe
Income taxes	Recording of a credit of income taxes due to recognition of losses on transferring of investments in subsidiaries for tax
	purposes following a repayment of paid-in capital from a U.S. subsidiary to the Company as part of the Group's capital
	policy to optimize the global allocation of cash
Exchange rate effects	Revenue: +15.56 billion yen, operating profit: -6.28 billion yen
Exchange rate sensitivity	Revenue (U.S. dollars: +1.66 billion yen, Euro: +0.31 billion yen, U.K. pounds: +0.09 billion yen,
(annual effect of 1 yen depreciation in currency value)	Chinese renminbi: +6.98 billion yen)
	Operating profit (U.S. dollars: -1.50 billion yen, Euro: +0.20 billion yen, U.K. pounds: -0.01 billion yen,
	Chinese renminbi: +3.59 billion yen)

• Of 110 million USD (for April 2022 - December 2022), which is the remaining amount of Eisai's share of Alzheimer's disease treatment ADUHELM related expenses capped at 335 million USD by the amendment of the collaboration agreements with Biogen Inc. in March 2022, 51 million USD is recorded in selling, general and administrative expenses, and research and development expenses in this period.

Reference Data [Consolidated] 1

August 5, 2022 / Eisai Co., Ltd.

2. Segment Information

1. Revenue

(billions of yen)

	FY 2021		FY 2022
	Q1		Full year	Q1	YOY (%)	CER
		YOY (%)
Pharmaceutical Business Total	147.2		626.3	181.3	123.2	112.8
Japan pharmaceutical business	49.6		214.0	57.5	115.8	115.8
Americas pharmaceutical business	38.3		172.0	53.1	138.5	117.1
United States	37.7		169.5	52.2	138.4	117.0
China pharmaceutical business	27.4		108.4	34.8	127.1	110.0
EMEA pharmaceutical business	14.1		59.3	18.1	128.1	118.0
Asia and Latin America pharmaceutical business	12.6		48.6	12.0	95.0	86.4
OTC and others	5.2		23.8	6.0	115.3	115.3
Other business	51.7		129.9	2.9	5.6	5.3
Consolidated revenue	198.9		756.2	184.3	92.6	84.8

• Indicates revenue from external customers.
• CER=Constant Exchange Rates

2) Profit by Reporting Segment

(billions of yen)

		FY 2021		FY 2022
	Q1		Full year	Q1	YOY (%)	CER
		YOY (%)
Pharmaceutical Business Total		68.1	268.9	90.6	133.1	123.2
Japan pharmaceutical business		15.6	61.0	21.6	138.9	138.9
Americas pharmaceutical business		21.7	95.6	31.3	144.0	132.3
China pharmaceutical business		16.4	57.0	20.8	126.4	111.4
EMEA pharmaceutical business		8.1	30.1	10.2	127.1	112.1
Asia and Latin America pharmaceutical business		5.7	20.4	5.3	94.0	85.3
OTC and others		0.7	4.7	1.4	207.8	207.8
Other business		49.8	121.6	0.5	1.0	0.7
Research and development expenses		(41.8)	(171.7)	(38.5)	92.1	76.8
Group headquarters' management costs and other expenses#		(20.8)	(165.0)	(45.2)	217.2	184.7
Consolidated operating profit		55.3	53.7	7.4	13.4	24.8

• Includes the amount of profits and expenses shared under strategic collaborations with partners.
• As the co-development and co-promotion agreements on ADUHELM with Biogen Inc. were changed in March 2022, all relevant expenses (selling, general and administrative expenses) that the Company should share have been included in the "Group headquarters' management costs and other expenses" since April 1, 2022. In addition, gains and losses on sale of non-current assets have been included in the "Group headquarters' management costs and other expenses". As a result, these changes of the FY 2021 have been reflected in Segment Information.

Reference Data [Consolidated] 2

August 5, 2022 / Eisai Co., Ltd.

3. Financial Results by Reporting Segment

1) Japan pharmaceutical business

						(billions of yen)
		FY 2021		FY 2022
	Q1			Full year	Q1	YOY (%)
Revenue		49.6		214.0	57.5	115.8
Segment profit		15.6		61.0	21.6	138.9

Japan prescription medicines - revenue from major products

Fully human anti-TNF-α monoclonal antibody	11.4	50.6	12.6	110.1
Humira
Insomnia treatment	1.9	12.7	5.3	285.2
Dayvigo
Anticancer agent	2.5	10.3	3.6	144.3
Lenvima
Peripheral neuropathy treatment	2.4	10.8	2.7	111.5
Methycobal
Anticancer agent	2.0	8.3	2.2	113.6
Halaven
Elemental diet	1.7	6.8	1.8	109.6
Elental#
Chronic constipation treatment	1.4	6.1	1.7	115.3
Goofice#
Proton pump inhibitor	1.7	7.1	1.6	94.3
Pariet#
Antiepileptic agent	1.2	5.4	1.6	126.0
Fycompa
Chronic constipation treatment	1.1	4.9	1.6	139.7
Movicol#
Janus kinase inhibitor	0.1	1.5	1.3	979.3
Jyseleca
Alzheimer's disease / Dementia with Lewy bodies treatment	1.8	6.9	1.2	69.4
Aricept

• The revenue for Pariet includes the revenue for triple formulation packs for Helicobacter pylori eradication, Rabecure Pack 400/800 and Rabefine Pack.
  # EA Pharma product

Reference Data [Consolidated] 3

August 5, 2022 / Eisai Co., Ltd.