Kaken Pharmaceutical : ［Delayed］［Summary］Consolidated Financial Results for the Third Quarter of Fiscal 2021

February 3, 2022

Consolidated Financial Results for the Third Quarter of Fiscal 2021

(Nine-Month Period Ended December 31, 2021) [JGAAP]

Company name:	KAKEN PHARMACEUTICAL Co., Ltd.	Listing: Tokyo Stock Exchange First Section
Securities code:	4521	(URL: https://www.kaken.co.jp/)
Representative:	Hiroyuki Horiuchi, President and Representative Director
Inquiries:	Kazuhiro Kondo, General Manager of General Affairs Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	February 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of 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 2021 (April 1, 2021 to December 31, 2021)

(1) Consolidated Operating Results (cumulative)				(Percentage indicates year-on-year change)
			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent
		(Millions of yen)		Change	(Millions of yen)		Change	(Millions of yen)	Change	(Millions of yen)	Change
			(%)		(%)	(%)	(%)
Nine-Month period of Fiscal 2021		57,708		1.1	13,889		(7.1)	14,322	(6.7)	10,246	(6.3)
Nine-Month period of Fiscal 2020		57,082		(18.7)	14,949		(33.4)	15,347	(32.8)	10,934	(29.7)
Note:
Comprehensive income:
Nine-Month period of Fiscal 2021:	¥ 10,930 million [(10.8)%]
Nine-Month period of Fiscal 2020:	¥ 12,256 million [(21.9)%]
			Basic earnings	Diluted earnings
			per share		per share
			(Yen)		(Yen)
Nine-Month period of Fiscal 2021			269.41	-
Nine-Month period of Fiscal 2020			282.69	-

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) since the start of the first quarter. The figures for the third quarter of the fiscal year ending in March 2022 have reflected the adoption of the said Accounting Standard.

(2) Consolidated Financial Position

		Total assets	Net assets	Equity-to-asset ratio
		(Millions of yen)	(Millions of yen)	(%)
As of December 31, 2021		167,677	139,692	83.0
As of March 31, 2021		163,332	136,257	83.4
Reference:
Equity:
As of December 31, 2021: ¥ 139,692 million
As of March 31, 2021:	¥ 136,257 million

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) since the start of the first quarter. The figures for the third quarter of the fiscal year ending in March 2022 have reflected the adoption of the said Accounting Standard.

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2. Cash Dividends

		Annual dividends per share
	End of first quarter	End of second quarter	End of third quarter		Year-end	Total
	(Yen)	(Yen)	(Yen)		(Yen)	(Yen)
Fiscal 2020	-	75.00	-		75.00	150.00
Fiscal 2021	-	75.00	-
Fiscal 2021 (Forecast)					75.00	150.00

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

3. Consolidated Financial Forecast for Fiscal 2021 (April 1, 2021 to March 31, 2022)

								(Percentage indicates year-on-year change)
									Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit		earnings
			owners of parent
									per share
	(Millions of yen)		(%)	(Millions of yen)	(%)	(Millions of yen)	(%)		(Millions of yen)	(%)	(Yen)
Full year	79,200		5.6	18,800	5.7	19,200	5.4		14,000	4.4	370.19

Note: Revisions to the financial forecast most recently announced: None

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, issued on March 31, 2020) since the start of the first quarter. The figures for the forecast of consolidated results stated above have reflected the adoption of the said Accounting Standard.

* Notes

(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changes in scope of consolidation): Yes

Newly included: 1 company Company name: ARTham Therapeutics, Inc.

Excluded: －

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
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

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(4) Issued shares (Common stock)

1)	Number of shares issued (including	As of December 31,	45,939,730 shares	As of March 31,	45,939,730 shares
	treasury stock) at the period end	2021	2021
2)	Number of treasury stock at the period
As of December 31,	8,121,218 shares	As of March 31,	7,621,338 shares
	end	2021	2021
3) Average number of shares during the
Nine-Month period	38,031,458 shares	Nine-Month period	38,678,904 shares
	period	of Fiscal 2021	of Fiscal 2020

Note: Number of treasury stock at the period end includes the Company's shares held by the "Board Benefit Trust (BBT)" (38,500 shares as of December 31, 2021 and 39,400 shares as of March 31, 2021). The Company's shares held by the BBT (38,867 shares as of December 31, 2021 and 40,099 shares as of December 31, 2020) are included in the number of treasury stock to be deducted in calculating the average number of shares during the period.

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation for the appropriate use of performance forecasts and other special notes:

(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 2021

(1) Consolidated balance sheets

(Unit: Millions of yen)

				Fiscal 2020		Nine-Month Period of
					Fiscal 2021
				(As of March 31, 2021)
					(As of December 31, 2021)
Assets
Current assets
	Cash and deposits		63,706			53,363
	Notes and accounts receivable-trade	20,549	-
	Notes and accounts receivable - trade, and		-			26,737
	contract assets
	Marketable securities	13,599	13,599
	Merchandise and finished goods		5,700		6,290
	Work in process	3,126	3,489
	Raw materials and supplies		6,371		7,140
	Other	608	898
	Allowance for doubtful accounts		(0)		-
	Total current assets		113,662	111,519
Non-current assets
	Property, plant and equipment
	Buildings and structures, net		16,080		16,830
	Other, net	8,939	8,874
	Total property, plant and equipment			25,020		25,704
	Intangible assets
	Goodwill	-		5,388
	Other	625	632
	Total intangible assets		625		6,020
	Investments and other assets
	Investment securities		17,368		18,268
	Other	6,656	6,163
	Total investments and other assets			24,024		24,432
	Total non-current assets		49,669	56,157
Total assets			163,332		167,677

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(Unit: Millions of yen)

		Fiscal 2020		Nine-Month Period of
			Fiscal 2021
		(As of March 31, 2021)
			(As of December 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable-trade		8,425		7,884
Electronically recorded obligations-operating	144	94
Short-term bank loans		3,850		3,850
Income taxes payable	2,292	2,117
Provision
Provision for bonuses	1,046	486
Other provision		386		-
Other	5,130	7,640
Total current liabilities		21,276		22,073
Non-current liabilities
Provision for share-based remuneration		73		66
Net defined benefit liability	5,376	5,257
Other		348		586
Total non-current liabilities	5,798	5,911
Total liabilities		27,074		27,984
Net assets
Shareholders' equity
Common stock	23,853	23,853
Capital surplus		11,406		11,406
Retained earnings	122,462	127,044
Treasury stock		(26,304)		(28,713)
Total shareholders' equity	131,418	133,590
Accumulated other comprehensive income
Net unrealized holding gain on securities	4,739	5,364
Remeasurements of defined benefit plans		99		158
Total accumulated other comprehensive	4,839	5,523
income
Non-controlling interests		-		578
Total net assets	136,257	139,692
Total liabilities and net assets			163,332		167,677

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