Nippon Chemiphar : Second quarter business summary FY2023.

FY2023 Second Quarter

Business Summary

(Year Ending March 31, 2024)

（TSE 4539）

Sales and Income to Year-on-Year

								(¥mn)
				FY2022		FY2023
			2Q	% of	Full Year	% of	2Q	YOY
			Amount	Sales	Amount	Sales	Change	(%)
Net sales	16,237	100.0	31,559	100.0	(1,400)	(8.6)
	Pharmaceutical products segment	15,798	97.3	30,543	96.3	(1,505)	(9.5)
		Generics, proprietary products					(1,880)	(13.7)
		and new drugs	13,695	84.3	26,148	79.6
		Diagnostics	1,239	7.6	2,780	12.3	578	46.7
	Others segment	439	2.7	1,015	3.7	104	23.8
Cost of sales	11,976	73.8	23,374	75.5	(771)	(6.4)
SG&A expenses	4,093	25.2	8,425	26.5	(162)	(4.0)
	R&D expenses	1,022	6.3	2,419	6.8	(16)	(1.6)
Operating profit/loss	167	1.0	(241)	－	(466)	－
Ordinary profit	752	4.6	58	0.1	(741)	(98.6)
Net profit attributable to
owners of parent	896	5.5	339	0.2	(865)	(96.5)

1

Sales and Income to Full Year Forecasts

								(¥mn)
			FY2022			FY2023
			Full Year	% of			Full Year	Progress
			Amount	Sales			Forecasts	Rate (%)
Net sales	31,559	100.0		.0	32,700	45.4
	Pharmaceutical products segment	30,543	96.8		96.3	－	－
		Generics, proprietary products
		and new drugs	26,148	82.9		79.6	25,870	45.7
		Diagnostics	2,780	8.8		12.3	4,500	40.4
	Others segment	1,015	3.2		3.7	－	－
Cost of sales	23,374	74.1		75.5	－	－
SG&A expenses	8,425	26.7		26.5	－	－
	R&D expenses	2,419	7.7		6.8	2,820	35.7
Operating profit/loss	(241)	－		－	200	－
Ordinary profit	58	0.2		0.1	100	10.6
Net profit attributable to
owners of parent	339	1.1		0.2	60	52.5

2

Pharmaceutical Sales to Year-on-Year

Generics, Proprietary Products and New Drugs					(¥mn)
				FY2022		FY2023
			2Q	% of	Full Year	% of	2Q	YOY
			Amount	Sales	Amount	Sales	Change	(%)
Total	13,695	100.0	26,148	100.0	(1,880)	(13.7)
	Generics	13,010	95.0	24,803	94.3	(1,863)	(14.3)
		To medical institutions	12,423	－	23,698	－	(1,686)	(13.6)
		To other makers*	586	－	1,105	－	(177)	(30.2)
	Proprietary products and new drugs	685	5.0	1,345	5.7	(16)	(2.4)
		Uralyt	291	－	575	－	(8)	(2.9)
		Others	394	－	769	－	(8)	(2.1)
Chemiphar, ODM Generics
Total	13,627	－	25,881	－	(2,067)	(15.2)
	Generics (ODM)	617	－	1,078	－	(204)	(33.1)

* Includes exports.

3

Pharmaceutical Sales to Full Year Forecasts

Generics, Proprietary Products and New Drugs				(¥mn)
			FY2022		FY2023
			Full Year	% of
				Full Year	Progress
			Amount	Sales		Forecasts	Rate (%)
Total	26,148	100.0	.0	25,870	45.7
	Generics	24,803	94.9	94.3	24,640	45.2
		To medical institutions	23,698	－	－	23,830	45.1
		To other makers*	1,105	－	－	810	50.6
	Proprietary products and new drugs	1,345	5.1	5.7	1,230	54.4
		Uralyt	575	－	－	530	53.4
		Others	769	－	－	700	55.1
Chemiphar, ODM Generics
Total	25,881	－	－	25,670	45.0
	Generics (ODM)	1,078	－	－	1,030	40.1

4

Sales Distribution by Launch Year

					(¥mn)
	FY2022		FY2023
	2Q	Distrib.			Product Lineup
	Amount	(%)
FY2019 and before	11,977	92.1	0)
FY2020	688	5.3	1)	・Memantine
・Celecoxib
FY2021	224	1.7	3)	・Eszopiclone
・Duloxetine
FY2022	118	0.9	3	・Febuxostat
・Esomeprazole
FY2023	－	－			・Azilsartan
Total	13,010	100.0	3)

5

Sales of Diagnostics

■ Sales of Diagnostics

（¥mn）

Sales of 2Q FY2023: ¥1,817 million （46.7% YOY, 40.4% to forecast）

■ Domestic target of DropScreen

（Unit of equipment）

At the end of September 2023： 800 units

6

Balance Sheet

(¥mn)

	FY2022		FY2023
	March 31, 2023		Reason for changes
			Cash and deposits	791	*
			Notes and accounts
			receivable―trade, and	(412)
Current assets	33,436		Inventories	1,124	For increased production
Non-current assets	15,134		Construction in progress	1,161	*
	Investment securities	248
Total assets	48,571
			Purchase payables	(72)
Current liabilities	14,766		Current portion of long-
	term borrowings	116
Non-current liabilities	15,270		Long-term borrowings	1,616	*
Total net assets	18,534

Total liabilities and net assets

48,571

* Additional installation at Building No. 3 of our Tsukuba Factory.

7

Cash Flow

(¥mn)

(¥mn)

8

Expenditure and Per Share Information

Capital Expenditure and Other						(¥mn)
	FY2022		FY2023
	2Q	Full Year	2Q	YOY	Full Year	Usage
	Amount	Amount	Amount	(%)	(Forecast)	Rate (%)
Capital expenditure	299	573	1,301	334.8	3,700	35.2
Depreciation and amortization	737	1,500	715	(2.9)	1,450	49.4

Note to expenditure: We are budgeting for total capital expenditure of ¥3,700 million as we envision additional installation at Building No. 3 of our Tsukuba Factory to meet the need for increased production.

Per Share Information					(¥)
	FY2022		FY2023
	2Q	Full Year	2Q		Full Year
	Amount	Amount	Amount	Change	(Forecast)
Earnings per share	248.43	94.07	8.72	(239.71)	16.62
	Sept. 30,	March 31,	Sept. 30,		Full Year
	2022	2023	2023	Change	(Forecast)
Book value per share	5,252.48	5,130.65	5,139.65	(112.83)	－
Dividends per share	0.00	50.00	0.00	0.00	50.00
Dividend payout ratio (%)	－	53.2	－	－	300.8

9