Kaken Pharmaceutical : Consolidated Financial Results for the Third Quarter of Fiscal 2022

February 3, 2023

Consolidated Financial Results for the Third Quarter of Fiscal 2022

(Nine-Month Period Ended December 31, 2022) [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:	Kazuhiro Kondo, General Manager of General Affairs Department
Telephone:	[phone]

Scheduled date of quarterly securities report submission:	February 10, 2023
Scheduled date of dividend payment commencement:	-
Supplementary materials for quarterly financial results:	Yes
Quarterly financial results briefing:	None

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine-Month Period of Fiscal 2022 (April 1, 2022 to December 31, 2022)

(1) Consolidated Operating Results (cumulative)				(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)	(%)
Nine-Month period of Fiscal 2022		55,573		(3.7)	12,394		(10.8)	12,976	(9.4)	9,149	(10.7)
Nine-Month period of Fiscal 2021		57,708		1.1	13,889		(7.1)	14,322	(6.7)	10,246	(6.3)
Note:
Comprehensive income:
Nine-Month period of Fiscal 2022:	¥ 9,343 million [(14.5)%]
Nine-Month period of Fiscal 2021:	¥ 10,930 million [(10.8)%]
		Basic earnings	Diluted earnings
		per share		per share
		(Yen)		(Yen)
Nine-Month period of Fiscal 2022				243.31	-
Nine-Month period of Fiscal 2021				269.41	-
(2) Consolidated Financial Position
		Total assets	Net assets		Equity-to-asset ratio
		(Million yen)		(Million yen)		(%)
As of December 31, 2022		167,767	140,704		83.5
As of March 31, 2022		165,181	138,325		83.4

Reference:

Equity:

As of December 31, 2022: ¥ 140,125 million

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

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2. Cash Dividends

		Annual dividends per share
	1st quarter	2nd quarter	3rd quarter		Year-end	Total
	(Yen)	(Yen)	(Yen)		(Yen)	(Yen)
Year ended March 31,		75.00	-		75.00	150.00
2022	-
Year ending March 31,		75.00	-
2023	-
Year ending March 31,					75.00	150.00
2023 (Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(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	73,500		(3.3)	7,500	(56.0)	8,100	(53.8)	6,100	(36.1)	162.22
March 31, 2023

Note: Revisions to the financial forecast most recently announced: Yes

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* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changes in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 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
5. 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 December 31,	45,939,730 shares	As of March 31,	45,939,730 shares
2022	2022
As of December 31,	8,466,705 shares	As of March 31,	8,121,361 shares
2022	2022
Nine-Month period	37,603,351 shares	Nine-Month period	38,031,458 shares
of Fiscal 2022	of Fiscal 2021

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 December 31, 2022 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 (35,551 shares as of December 31, 2022 and 38,867 shares as of December 31, 2021).

• Quarterly financial results reports are exempt from quarterly review 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 quarterly financial results reports:

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

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2. Consolidated Financial Results for Nine-Month Period of Fiscal 2022

(1) Consolidated balance sheets

(Millions of yen)

					Fiscal 2021		Nine-Month Period of
						Fiscal 2022
					(As of March 31, 2022)
						(As of December 31, 2022)
Assets
	Current assets
		Cash and deposits			61,025			55,858
	Notes and accounts receivable - trade, and	20,260		25,339
		contract assets
		Marketable securities			13,599			14,699
	Merchandise and finished goods	5,807		8,089
		Work in process			2,964			2,700
	Raw materials and supplies	6,209		6,032
		Other			746			771
	Allowance for doubtful accounts	-		(0)
		Total current assets			110,613			113,493
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	17,142		16,486
		Other, net			8,591			8,457
		Total property, plant and equipment	25,734		24,944
		Intangible assets
		In-process research and development	7,300		7,300
		Other			936			1,172
		Total intangible assets	8,236		8,472
		Investments and other assets
		Investment securities	17,093		17,501
		Other			3,503			3,355
		Total investments and other assets	20,596		20,857
		Total non-current assets			54,567			54,274
	Total assets		165,181		167,767

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(Millions of yen)

							Fiscal 2021		Nine-Month Period of
								Fiscal 2022
							(As of March 31, 2022)
								(As of December 31, 2022)
	Liabilities
		Current liabilities
				Notes and accounts payable-trade					5,861			7,552
			Electronically recorded obligations-operating	78	120
				Short-term bank loans					3,850			3,850
			Income taxes payable	2,436	1,509
				Provision for bonuses					984			464
			Other	5,838	5,916
				Total current liabilities					19,049			19,413
		Non-current liabilities
				Provision for share-based remuneration					106			70
			Net defined benefit liability	5,039	4,925
				Deferred tax liabilities					2,229			2,229
			Other	431	424
				Total non-current liabilities					7,806			7,649
		Total liabilities	26,855	27,063
	Net assets
		Shareholders' equity
				Common stock					23,853			23,853
			Capital surplus	11,406	11,406
				Retained earnings					126,347			129,844
			Treasury stock	(28,714)	(30,026)
				Total shareholders' equity					132,893			135,078
		Accumulated other comprehensive income
				Net unrealized holding gain on securities					4,551			4,698
			Remeasurements of defined benefit plans	301	349
				Total accumulated other comprehensive					4,853			5,047
				income
		Non-controlling interests	578	578
			Total net assets					138,325			140,704
	Total liabilities and net assets	165,181	167,767

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