Santen Reports the 2nd Quarter Fiscal 2021 Consolidated Performance

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021 (IFRS)

Listed Company Name:	Santen Pharmaceutical Co.,Ltd
Exchanges Listed:	Tokyo (First section)
Stock Code:	4536
URL:	https://www.santen.com
Representative:	Shigeo Taniuchi, President and CEO
Contact:	Kaori Itagaki, IR Group Manager ([phone])
Filing of Securities Report (Scheduled):	November 10, 2021
Distribution of Dividends (Scheduled):	November 30, 2021
Preparation of Supplementary Material of the	Yes
Financial Results:
Holding of Presentation of Financial Results:	Yes (for securities analysts and institutional investors)

(JPY millions)

1. Consolidated Performance for the Six Months Ended September 30, 2021

(1) Operating Results (IFRS)

	Six months	Six months
	ended	ended
	September 30,	September 30,	% change
	2020	2021
Revenue	118,905	128,759	+8.3％
Operating profit	18,686	18,805	+0.6％
Profit before tax	18,353	18,393	+0.2％
Net profit for the period	13,698
14,254	+4.1％
Net profit for the period attributable to owners of the company	13,813	14,307	+3.6％
Total comprehensive income for the period	18,498	14,858	(19.7％)
Basic earnings per share (yen)	34.58	35.79
Diluted earnings per share (yen)	34.50	35.73

(Core basis)

	Six months	Six months
	ended	ended
	September 30,	September 30,	% change
	2020	2021
Revenue	118,905	128,759	+8.3％
Core operating profit	25,690	24,306	(5.4％)
Core net profit for the period	19,687	18,556	(5.7％)
Core net profit for the period attributable to owners of the company	19,703
18,586	(5.7%)
Basic core earnings per share (yen)	49.33
46.50
Diluted core earnings per share (yen)	49.21	46.41

(2) Financial Position

	March 31,	September 30,
	2021	2021
Total assets	405,285	420,435
Total equity	309,646	319,029
Total equity attributable to owners of the company	310,181	319,632
Total equity attributable to owners of the company ratio	76.5％	76.0％
Equity per share attributable to owners of the company (yen)	776.16	799.56

(Note) With regard to provisional accounting treatment related to a business combination in September 2020, in conjunction with the completion of purchase price adjustments in the second quarter of the fiscal year ending March 2022, the consolidated earnings and financial position for the second quarter of the fiscal year ended March 2021 has been retroactively restated.

2. Dividends

	Year to	Year to	(Forecasts)
	Year to
	March 2021	March 2022
	March 2022
First quarter dividends per share (yen)	－	－	－
Second quarter dividends per share (yen)	14.00	16.00	－
Third quarter dividends per share (yen)
－	－	－
Year-end dividends per share (yen)	14.00	－	16.00
Annual dividends per share (yen)	28.00	－	32.00
(Note) Revisions to the forecasts of dividends from the latest announcement: No

3. Consolidated Forecasts of Results for the Year Ending March 31, 2022

(IFRS)

	Year to	% change
	March 2022
Revenue	260,000	+4.2％
Operating profit	41,500	+240.5％
Profit before tax	41,000	+250.8％
Net profit for the year
30,500	+234.2％
Basic earnings per share (yen)	77.07

(Core basis)

	Year to	% change
	March 2022
Revenue	260,000	+4.2％
Core operating profit	52,000	+3.8％
Core net profit for the year	39,000	+3.9％
Basic core earnings per share (yen)	98.34

(Note) Revisions to the forecasts of consolidated results from the latest announcement: No

Please refer to "1. Summary of Quarterly Consolidated Results (1) Summary of Consolidated Results" on page 6 of the attached material for details of the reconciliation from IFRS basis figures to core-based figures.

*Notes

1. Changes in significant subsidiaries during the period
   (Changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Changes in accounting policies and accounting estimates

(i)	Changes in accounting policies required by IFRS	: No
(ii)	Changes in accounting policies other than (i)	: No
(iii) Changes in accounting estimates	: No

(3) Number of ordinary shares issued

(i) Number of shares outstanding at the end of period (including treasury shares)

September 30, 2021	400,400,954 shares
March 31, 2021	400,368,954 shares
(ii) Number of treasury shares at the end of period
September 30, 2021	423,603 shares
March 31, 2021	549,909 shares
(iii) Average number of outstanding shares
The Second quarter ended September 30, 2021	399,679,863 shares
The Second quarter ended September 30, 2020	399,394,844 shares

(Note)The number of treasury shares at the end of the period includes shares owned in trust for the stock compensation system(18,230 shares at the end of the fiscal year ended March 31, 2021 and 16,271 shares as of the second quarter of the fiscal year ending March 31, 2022). Treasury shares are also included in the calculation of the average number of shares outstanding during the period.

*This financial summary is not subject to audit by a certified public accountant or auditing firm.

*Explanations and other special notes concerning the appropriate use of business performance forecasts (Notes on forward-looking statements)

The earnings forecasts and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual results may differ from these forecasts due to various factors.

(Method of obtaining supplementary explanatory materials for financial results and results presentation contents)

The Santen Group plans to hold a briefing on the results for securities analysts and institutional investors on November 9, 2021. The materials used in this briefing will be posted on our website.

Accompanying Materials - Contents
1. Summary of Quarterly Consolidated Results…………………………………………………………..	2
(1)	Summary of Consolidated Results...........................................................………………...........	2
(2)	Summary of Financial Position..................................................................…………………......	8
(3)	Information about Forecasts of Consolidated Financial Results and Other Forward-Looking	8
Statements…………………………………………………………………………………………………

2. Condensed Interim Consolidated Financial Statements...........…...........…...........…...........……… 9

1. Condensed Interim Consolidated Statements of Income and Comprehensive Income……….. 9
2. Condensed Interim Consolidated Statements of Financial Position......................…………...... 10
3. Condensed Interim Consolidated Statements of Changes in Equity....................……………... 12

(4)	Condensed Interim Consolidated Statements of Cash Flows....................................................	14
(5)	Notes to Condensed Interim Consolidated Financial Statements ............................................	15
(Going Concern Assumption)....................……………………………………………….................	15
(Business Combinations)...................…………………………………………...........…….............	15
(Significant Subsequent Events)......................…………………………………………………….. 17
3. Consolidated Reference......................…………………………………………………………………	18
(1)	Revenue of Major Products......................................................................................................	18
(2)	Research & Development.........................................................................................................	19
(3)	Capital Expenditures, Depreciation and Amortization, Amortization of Intangible Assets
	Related to Products, and Research and Development Expenses............................................	21
(4) FOREX.....................................................................................................................................	22

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1. Summary of Quarterly Consolidated Results

1. Summary of Consolidated Results
   (I) Consolidated Results
   A) IFRS

			(JPY millions)
	Six months ended	Six months ended	Year-on-year change
	September 30, 2020	September 30, 2021
Revenue	118,905	128,759	8.3%
Core operating profit	18,686	18,805	0.6%
Core net profit for the period	13,698	14,254	4.1%
Core net profit for the period attributable	13,813	14,307	3.6%
to owners of the company

[Revenue]

Revenue in the six months ended September 30, 2021 increased by 8.3% year-on-year to ¥128.8 billion.

In the mainstay prescription pharmaceuticals business, sales grew by 8.0% year-on-year to ¥120.4 billion. This is due to the steady growth in mainstay products despite the impact of drug price revisions in Japan, the minimization of the impact of volume-based purchasing in China, as well as the stable growth in mainstay products in EMEA.

The breakdown of revenue is as follows:

Upper: Value
Lower: Year-on-year change						(JPY millions)
【】: Year-on-year change excluding FX impact
		Japan	China	Asia	EMEA	Americas	Total
Prescription		75,675	13,998	8,728	20,501	1,469	120,370
	6.4％	10.0％	(2.9％)	13.6％	155.6％	8.0％
pharmaceuticals
	【－％】	【(1.9％)】	【(9.5％)】	【5.3％】	【147.9％】	【4.7％】
OTC		4,791	－	296	－	－	5,087
pharmaceuticals		(0.7％)	－	67.1％	－	－	1.7％
Medical devices		1,542	－	－	742	198	2,481
	15.4％	(100.0％)	－	95.2％	－	44.5％
Others		770	17	33	－	－	820
	21.2％	(38.4％)	(5.5％)	－	－	17.5％
Total		82,777	14,015	9,057	21,242	1,667	128,759
	6.2％	9.9％	(1.5％)	15.3％	190.1％	8.3％

(Note)

Represents revenue from sales to external customers.

Classified into countries or regions based on customer location. China is not included in Asia. EMEA refers to Europe, the Middle East and Africa.

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