Shionogi : 1Q Presentation material

1st Quarter of Fiscal 2021 Financial Results

Conference Call

August 2, 2021

Shionogi & Co., Ltd.

Agenda

1. Overview of Q1 FY2021 Financial Results (P.3-9)
2. Main Activities and Achievements in Q1 FY2021(P.10-19)

2

1. Overview of Q1 FY2021 Financial Results

Financial Results (Consolidated)

Revenue Operating profit Core operating profit* Profit before tax Profit attributable to owners of parent

		FY2021		FY2020			(Unit: B yen)
				Y on Y
Forecasts	Apr.-Jun.	Achievement	Apr.-Jun.	Change	Change
Full year	1H	results	(%)	results	(%)

290.0	135.0	69.0	51.1	71.4	(3.4)	(2.4)
90.0	38.5	18.8	48.8	28.6	(34.2)	(9.8)
90.0	38.5	19.4	50.3	25.9	(25.0)	(6.5)
115.0	48.5	22.9	47.3	33.0	(30.5)	(10.1)
100.0	49.5	32.2	65.1	24.5	31.6	7.7

• Revenue and profit at each level is in line with the forecast for 1H
• • Continued to actively invest primarily in European launches of cefiderocol and in projects related to COVID-19
• Profit attributable to owners of parent was higher than the same period actuals a year earlier
• • Reflecting a refund resulting from finally prevailing in court regarding cancellation of correction disposition from Osaka Regional Taxation Bureau

Exchange Rate	FY2021	FY2021
Apr.-Jun.
（average）	forecasts
results
USD ($) - JPY (¥)	105	109.52
GBP (£) - JPY (¥)	145	153.20
EUR (€) - JPY (¥)	128	131.94

* Operating profit adjusted for one-time factors (impairment losses, gain on sale	4
of property, plant and equipment, etc.)

Statement of Profit or Loss (Consolidated)

									(Unit: B yen)
										Main Variation Factors (Y on Y)
			FY2021			FY2020	Y on Y
						•	Revenue
		Forecasts	Apr.-Jun.			Achieve	Apr.-Jun.	Change	Change
		Full year	1H					- Increase in sales of prescription drugs and overseas
		results			ment (%)	results	(%)
Revenue	290.0	135.0	69.0		51.1	71.4	(3.4)	(2.4)			subsidiary/export
			- Decrease in royalty income (mainly Crestor®)
		19.8	18.5	17.9
Cost of sales					16.1				•	Cost of sales
	57.5	25.0	12.3		49.3	11.5	7.3	0.8
					- Increased due to the acquisition of Nagase Medicals
Gross profit		232.5	110.0	56.6		51.5	59.9	(5.5)	(3.3)			(contracted manufacturing) as a consolidated
Selling general &		30.7	32.6	32.7				30.4					subsidiary in 3Q of the previous year
administrative		89.0	44.0	22.6		51.3	21.7	4.1	0.9		•	Selling general & administrative expenses
expenses					- Increase in preparation for launch and sales activity
R&D expenses		17.9	18.5	21.4				17.0					costs for Fetcroja® in Europe
	52.0	25.0	14.7		58.9	12.2	21.1	2.6		•	R&D
Other income &		(1.5)	(2.5)	(0.5)		21.7	2.5*	(121.6)	(3.0)			- Accelerating of R&D activities centered on COVID-
				19 vaccine (S-268019),COVID-19 therapeutic drugs
expenses													and 8 core projects
		31.0	28.5	27.3				40.0
Operating profit								•	Other income & expenses
	90.0	38.5	18.8		48.8	28.6	(34.2)	(9.8)
					- Recognized gain on step acquisitions for Tetra in 1Q
		31.0	28.5	28.1				36.2
Core operating profit**									of the previous year (about 2.9 B yen)
	90.0	38.5	19.4		50.3	25.9	(25.0)	(6.5)
					- Interest on refund from Osaka Regional Taxation
Finance income & costs		25.0	10.0	4.1		41.5	4.4	(6.7)	(0.3)			Bureau (about 0.9 B yen)
												•	Profit attributable to owners of parent
Profit before tax		39.7	35.9	33.3				46.2
	115.0	48.5	22.9		47.3	33.0	(30.5)	(10.1)			- Received a refund regarding a favorable Judgement
					on the complaint for the rescission of tax
Profit attributable to		100.0	49.5	32.2		65.1	24.5	31.6	7.7			reassessment by Osaka Regional Taxation
owners of parent					Bureau(about 13.5 billion yen)
	* The provisional accounting for business combinations with Tetra was finalized in FY2020, the financial results for 1Q of
		previous fiscal year have been retroactively adjusted
	** Operating profit adjusted for one-time factors (impairment losses, gain on sale of property, plant and equipment, etc.) 5