Sumitomo Dainippon Pharma : Summary of Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2023

MEMBERSHIP

Summary of Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2023 [IFRS]

July 29, 2022

Company Name:

Stock Exchange Listings:

Security Code Number: Representative:

Contact:

Telephone:

Filing Date of Quarterly Financial Report: Starting Date of Dividend Payments: Preparation of Supplementary Financial Data for Quarterly Financial Results: Information Meeting for Quarterly Financial Results to be held:

SUMITOMO PHARMA CO., LTD. Tokyo

4506 (URL https://www.sumitomo-pharma.com)

Hiroshi Nomura, Representative Director, President and Chief Executive Officer

Naoki Noguchi, Executive Officer, Corporate Communications 03-5159-3300

August 3, 2022

－

Yes

Yes (for institutional investors and analysts)

(Note: All amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2023 (April 1, 2022 to June 30, 2022)

(1) Results of Operations

(% represents changes from the previous year)

									Net profit	Total
			Core operating					attributable to
	Revenue	Operating profit	Net profit	comprehensive
			profit					owners of the	income
									parent
	Millions	%	Millions	%	Millions	%	Millions	%	Millions	%	Millions		%
	of yen	of yen	of yen	of yen	of yen	of yen
Three months
ended	159,876	21.9	13,390	57.2	14,614	75.9	28,091	－	31,108	547.8	74,839		－
June 30, 2022
Three months
ended	131,196	(2.0)	8,518	(65.0)	8,306	(64.3)	807	(94.8)	4,802	(73.7)	(6,752)		－
June 30, 2021
Reference: Profit before taxes	Three months ended June 30, 2022: ¥46,610 million
			Three months ended June 30, 2021: ¥7,957 million

"Core operating profit" is calculated by deducting from operating profit any gains and losses resulting from nonrecurring factors that the Group designates (hereinafter referred to as "Non-recurring Items")

	Basic earnings	Earnings per
	per share	share (diluted)
	Yen	Yen
Three months ended	78.30	－
June 30, 2022
Three months ended	12.09	－
June 30, 2021

(2) Financial Position

			Equity	Ratio of equity	Equity
			attributable to
			attributable to	attributable to
	Total assets	Net assets	owners of the
	owners of the	owners of the
			parent to total
			parent	parent per share
				assets
	Millions of yen	Millions of yen	Millions of yen	%	Yen
As of June 30, 2022	1,422,933	744,414	673,010	47.3	1,693.99
As of March 31, 2022	1,308,007	673,569	607,888	46.5	1,530.08

2. Dividends

		Dividends per share
	1st quarter	2nd quarter	3rd quarter		Year-End	Annual
	Yen	Yen	Yen		Yen	Yen
Year ended	－	14.00	－		14.00	28.00
March 31, 2022
Year ending	－
March 31, 2023
Year ending		14.00			14.00	28.00
March 31, 2023		－
(Forecasts)

Note: Revision of dividend forecasts from the latest announcement: None

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

(% represents changes from the corresponding period of the previous year)

Core operating

Net profit

Earnings

Net sales

Operating profit

attributable to

per

profit

owners of parent

share

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

Year ending

550,000

(1.8)

30,000

(48.7)

24,000

(60.2)

22,000

(61.0)

55.37

March 31, 2023

Note: Revision

of dividend

forecasts

from the latest announcement: None

Notes:

1. Shift of significant subsidiaries during the period (shift of specified subsidiaries accompanied by changes in scope of consolidation): None
2. Changes in accounting policies, accounting estimates, and retrospective restatements

• Changes in accounting standards required by IFRS: None

• Changes due to changes in accounting standards other than (2),① : None

③ Changes in accounting estimates: None

1. Number of shares outstanding (Common stock)

• Number of shares outstanding (Including treasury stock) at the end of period

June 30, 2022:	397,900,154 shares
March 31, 2022:	397,900,154 shares

• Number of treasury stock at the end of period

June 30, 2022:	607,445 shares
March 31, 2022:	607,238 shares

• Average number of shares during the period

June 30, 2022:	397,292,798 shares
June 30, 2021:	397,293,647 shares

This summary of financial results is exempt from audit procedures.

Explanation for Appropriate Use of Forecasts and Other Notes:

This material contains forecasts, projections, goals, plans, and other forward-looking statements regarding the Group's financial results and other data. Such forward-looking statements are based on the Company's assumptions, estimates, outlook, and other judgments made in light of information available at the time of preparation of such statements and involve both known and unknown risks and uncertainties. Accordingly, forecasts, plans, goals, and other statements may not be realized as described, and actual financial results, success/failure or progress of development, and other projections may differ materially from those presented herein. Please refer to page 4, "1. Qualitative Information for the Three Months Ended June 30, 2022 (4) Qualitative Information on Consolidated Financial Forecasts".

Myovant Sciences Ltd. (hereinafter, "Myovant") is listed on the New York Stock Exchange, and the Group holds approximately 52% of the outstanding shares of Myovant. ORGOVYX® (relugolix), MYFEMBREE®/RYEQO® (relugolix combination tablet) are owned by Myovant. This material contains information about Myovant, which is based on information disclosed by Myovant. For more information on Myovant, please visit https://www.myovant.com.

Supplementary financial data and the presentation materials for the earnings presentation are disclosed together with the summary of financial results.

The Company holds the conference call for institutional investors and analysts on Friday July 29, 2022. The audio of the conference call will be posted on our website promptly after the conference call.

	Sumitomo Pharma Co., Ltd. (4506)
	Summary of Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2023
【Attachment Documents】
1. Qualitative Information for the Three Months Ended June 30, 2022.....................................................................	2
(1)	Qualitative Information on Business Results ......................................................................................................	2
(2)	Qualitative Information on Financial Condition ...................................................................................................	4
(3)	Qualitative Information on Cash Flows ...............................................................................................................	4
(4)	Qualitative Information on Consolidated Financial Forecasts .............................................................................	4
2. Consolidated Financial Statements .......................................................................................................................	5
(1)	Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income ..................	5
(2)	Consolidated Statement of Financial Position ....................................................................................................	6
(3)	Consolidated Statement of Changes in Equity ...................................................................................................	8
(4)	Consolidated Statement of Cash Flows ..............................................................................................................	10
(5)	Notes to Consolidated Financial Statements ......................................................................................................	11

―1―

Sumitomo Pharma Co., Ltd. (4506)

Summary of Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2023

1. Qualitative Information for the Three Months Ended June 30, 2022

The Group discloses its consolidated financial statements that are prepared in accordance with International Financial Reporting Standards (IFRS).

Forward-looking statements contained herein are based on the Group's judgments in light of information available as of the last day of the three-month period under review.

1. Qualitative Information on Business Results
   (About the performance indicator of "Core operating profit")
   The Group has set an original indicator for the Company's recurring profitability in the form of "Core operating profit". "Core operating profit" is calculated by deducting from operating profit any gains and losses resulting from nonrecurring factors that the Group designates (hereinafter referred to as "Non-recurring Items"). Among the main non-recurring Items are impairment losses, business structure improvement expenses, and changes in fair value of contingent consideration related to company acquisitions.
   Highlights of the Group's consolidated financial results for the first three months of the fiscal year ending March 31, 2023 are as follows:

				(Billions of yen)
	Three months ended	Three months ended	Change	Change %
	June 30, 2021	June 30, 2022
Revenue	131.2	159.9	28.7	21.9
Core operating profit	8.5	13.4	4.9	57.2
Operating profit	8.3	14.6	6.3	75.9
Profit before taxes	8.0	46.6	38.7	485.8
Net profit	0.8	28.1	27.3	－
Net profit attributable to	4.8	31.1	26.3	547.8
owners of the parent

The change % of net profit is not presented as it exceeds 1,000%.

■ Revenue increased by 21.9% year-on-year to 159.9 billion yen.

Revenue increased in the segments of North America, China, and Other Regions owing to the favorable effects of the forex situation and the recording of an upfront payment, despite a revenue decrease in the Japan segment primarily owing to the impact of the National Health Insurance (NHI) drug price revisions.

■ Core operating profit increased by 57.2% year-on-year to 13.4 billion yen.

Core operating profit increased as a rise in gross profit on account of revenue growth more than offset increases in selling, general and administrative expenses and R&D expenses primarily due to the effects of the forex situation.

■ Operating profit increased by 75.9% year-on-year to 14.6 billion yen.

Operating profit, as with core operating profit, increased due to the absence of major increases/decreases in fair value of contingent consideration and other non-recurring items.

■ Profit before taxes increased by 485.8% year-on-year to 46.6 billion yen.

Profit before taxes increased significantly as, in addition to the increase in operating profit, financial income/expenses- the balance of financial income after the deduction of financial expenses-increased substantially owing to the recording of forex gains resulting from the yen's depreciation during the quarterly accounting period under review.

• Net profit increased by －% year-on-year to 28.1 billion yen. Net profit increased as well, as profit before taxes increased.
• Net profit attributable to owners of the parent decreased by 547.8% year-on-year to 31.1 billion yen.

Net profit attributable to owners of the parent-the amount of net profit less the amount of losses attributable to non- controlling interests-increased as well owing to the significant magnitude of the increase in net profit.

The ratio of net profit attributable to owners of the parent to revenue was 19.5%.

―2―