Kaken Pharmaceutical : Consolidated Financial Results for the Fiscal 2022

May 10, 2023

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 [JGAAP]

Company name:	KAKEN PHARMACEUTICAL CO., LTD.
Stock exchange listing:	Tokyo Stock Exchange
Securities code number:	4521
URL:	https://www.kaken.co.jp/
Representative:	Hiroyuki Horiuchi, President and Representative Director
Contact:	Yasuhiko Kondo, General Manager of General Affairs Department
Telephone:	[phone]

Scheduled date of annual general meeting of shareholders:	June 29, 2023
Scheduled date of dividend payment commencement:	June 30, 2023
Scheduled date of annual securities report submission:	June 29, 2023
Supplementary materials for financial results:	Yes
Financial results briefing:	Yes (for institutional investors and analysts)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results					(Percentage indicates year-on-year change)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of the Company
	(Million yen)		(%)	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)
Year ended March 31, 2023	72,984		(4.0)	7,998	(53.1)	8,727	(50.3)	5,440	(43.0)
Year ended March 31, 2022	76,034		1.4	17,064	(4.1)	17,542	(3.7)	9,549	(28.8)

Note:

Comprehensive income:

Fiscal 2022: ¥ 5,475 million [(42.7)%]

Fiscal 2021: ¥ 9,563 million [(42.1)%]

	Basic earnings	Diluted earnings		Ratio of ordinary	Ratio of operating
	Return on equity	profit to total
	per share	per share	profit to net sales
		assets
	(Yen)	(Yen)	(%)	(%)	(%)
Year ended March 31, 2023	144.80	-	4.0	5.3	11.0
Year ended March 31, 2022	251.43	-	7.0	10.7	22.4

Reference:

Share of profit (loss) of entities accounted for using equity method:

Fiscal 2022: ¥ - million

Fiscal 2021: ¥ - million

(2) Consolidated Financial Position

	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
	(Million yen)	(Million yen)	(%)	(Yen)
As of March 31, 2023	166,328	136,836	81.9	3,636.17
As of March 31, 2022	165,181	138,325	83.4	3,642.34

Reference:

Equity:

As of March 31, 2023: ¥ 136,258 million

As of March 31, 2022: ¥ 137,747 million

1

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of year
	(Million yen)	(Million yen)	(Million yen)	(Million yen)
Year ended March 31, 2023	9,253	(2,627)	(6,990)	74,260
Year ended March 31, 2022	13,336	(7,888)	(8,129)	74,625

2. Cash Dividends

		Annual dividends per share		Total cash		Dividends to
						dividends	Payout ratio	net assets ratio
	1st quarter	2nd quarter	3rd quarter	Year-end	Total
						(Annual)	(Consolidated)	(Consolidated)
	(Yen)	(Yen)	(Yen)	(Yen)	(Yen)	(Million yen)	(%)	(%)
Year ended March 31, 2022	-	75.00	-	75.00	150.00	5,678	59.7	4.2
Year ended March 31, 2023	-	75.00	-	75.00	150.00	5,625	103.6	4.1
Year ending March 31,	-	75.00	-	75.00	150.00		83.9
2024 (Forecast)

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(Percentage indicates year-on-year change)

									Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit		earnings
			owners of the Company
									per share
	(Million yen)		(%)	(Million yen)	(%)	(Million yen)		(%)	(Million yen)	(%)	(Yen)
Year ending	73,100		0.2	7,600	(5.0)	8,000		(8.3)	6,700	23.2	178.80
March 31, 2024

2

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changes in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies other than 1): None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common stock)

1. Number of issued shares at the end of the period (including treasury stock)
2. Number of treasury shares at the end of the period
3. Average number of shares during the period

As of March 31,	45,939,730 shares	As of March 31,	45,939,730 shares
2023	2022
As of March 31,	8,466,780 shares	As of March 31,	8,121,361 shares
2023	2022
Fiscal 2022	37,571,209 shares	Fiscal 2021	37,978,940 shares

Note: The number of treasury shares at the end of the period includes the Company's shares held by the "Board Benefit Trust (BBT)" (33,400 shares as of March 31, 2023 and 38,500 shares as of March 31, 2022). The Company's shares held by the BBT are included in the number of treasury stock to be deducted in the calculation of the average number of shares during the period (35,021 shares as of March 31, 2023 and 38,776 shares as of March 31, 2022).

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Explanation of proper use of earnings forecasts, and other special matters:

(Caution regarding forward-looking statements)

The performance forecasts and other descriptions on future events presented in this material are based on information currently available and certain assumptions considered to be reasonable. The actual performance may differ from these forecasts.

How to review the supplementary material to the financial results reports:

It has been posted on the Company's web site, along with the financial results reports.

3

3. Consolidated Financial Results for Fiscal 2022

(1) Consolidated balance sheets

							(Millions of yen)
					Fiscal 2021	Fiscal 2022
					(As of March 31, 2022)	(As of March 31, 2023)
Assets
	Current assets
			Cash and deposits		61,025		59,561
		Notes and accounts receivable - trade, and	20,260		19,268
			contract assets
			Marketable securities		13,599		14,699
		Merchandise and finished goods	5,807		6,734
			Work in process		2,964		2,481
		Raw materials and supplies	6,209		6,348
			Other		746		809
		Allowance for doubtful accounts	-		(0)
			Total current assets		110,613		109,903
	Non-current assets
			Property, plant and equipment
			Buildings and structures	42,829		43,066
			Accumulated depreciation		(25,687)	(26,633)
			Buildings and structures, net	17,142		16,433
			Machinery, equipment and vehicles		15,708		16,612
			Accumulated depreciation	(13,452)	(13,880)
			Machinery, equipment and vehicles, net		2,256		2,732
			Tools, furniture and fixtures	7,819		8,463
			Accumulated depreciation		(6,425)	(6,676)
			Tools, furniture and fixtures, net	1,393		1.787
			Land		3,867		3,867
			Construction in progress	1,074		677
			Total property, plant and equipment		25,734		25,498
		Intangible assets
			In-process research and development		7,300		5,800
			Other	936		941
			Total intangible assets		8,236		6,741
		Investments and other assets
			Investment securities		17,093		17,511
			Long-term prepaid expenses	1,190		1,012
			Deferred tax assets		1,725		3,873
			Other	587		1,788
			Total investments and other assets		20,596		24,185
		Total non-current assets	54,567		56,425
	Total assets		165,181		166,328

4

						(Millions of yen)
				Fiscal 2021	Fiscal 2022
				(As of March 31, 2022)	(As of March 31, 2023)
Liabilities
Current liabilities
		Notes and accounts payable-trade			5,861	6,130
	Electronically recorded obligations-operating	78	89
		Short-term bank loans			3,850	3,850
	Accounts payable-other	3,543	5,824
		Accrued expenses			345	596
	Income taxes payable	2,436	2,004
		Provision for bonuses			984	942
	Provision for directors' bonuses	65	23
		Other			1,884	1,377
	Total current liabilities	19,049	20,838
	Non-current liabilities
	Provision for share-based remuneration	106	117
		Net defined benefit liability			5,039	6,349
	Deferred tax liabilities	2,229	1,771
		Other			431	414
	Total non-current liabilities	7,806	8,653
	Total liabilities			26,855	29,491
Net assets
	Shareholders' equity
	Common stock	23,853	23,853
		Capital surplus			11,406	11,406
	Retained earnings	126,347	126,135
		Treasury stock			(28,714)	(30,026)
	Total shareholders' equity	132,893	131,368
	Accumulated other comprehensive income
	Net unrealized holding gain on securities	4,551	4,724
		Remeasurements of defined benefit plans			301	165
	Total accumulated other comprehensive	4,853	4,889
		income
	Non-controlling interests			578	578
Total net assets	138,325	136,836
Total liabilities and net assets			165,181	166,328

5