Torii Pharmaceutical : Financial Results for the First Six Months of Fiscal Year Ending December 2022

Financial Results for the

First Six Months of Fiscal Year

Ending December 2022

Ⅰ Summary Information	P.1
①	Financial Results	P.1
②	Financial Conditions	P.1
③	Statement of Cash Flows	P.1
④	Capital Expenditures	P.1
⑤	Depreciation/Amortization	P.1

Ⅱ Financial Results for the First Six Months of FY2022 P.2

①	Statement of Income	P.2
②	Sales of Products	P.4
③	Research and Development	P.5
Ⅲ Financial Forecasts for the FY2022	P.6
①	Statement of Income	P.6
②	Sales of Products	P.8

※ This material is prepared based on Japan GAAP.

※ Amounts are rounded down to the nearest million yen.

※ The forecasts presented in this material are forward-looking statements. Reflecting assumptions based on information available on the date of publication, these statements are subject to inherent risks and uncertainties. Accordingly, unforeseen factors may cause actual results to differ materially from the projections contained herein.

Torii will not necessarily revise this material regardless of any new information, future events or other results.

July 29, 2022

TORII PHARMACEUTICAL CO., LTD.

• Summary Information
• Financial Results
  The forecasts for the FY2022 have been changed from the previous forecasts announced at the FY2021 financial results announcement on

February 10, 2022.

※1 ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the first six months of FY2021 retroactively. Increase (Decrease) in figures is reference values.

※2 ''Accounting Standard for Revenue Recognition'' etc. have been applied from the beginning of the first three months of FY2022, the forecasts for the FY2022 have already been incorporated the change.

		FY2021	FY2022	Change	Change			FY2021	FY2022		Progress
(Millions of Yen)		First six	First six
	（％）			Full year	Revised forecast※2		ratio (％)
		months	months
		A	B	B-A	(B-A)/A				C		B/C
Net sales		21,555	23,102	1,547	※1	7.2 ※1	46,987	49,800	46.4
Operating income		1,788	2,682	894		50.0			4,656	6,200	43.3
Ordinary income		1,851	2,468	616		33.3			4,847	6,100	40.5
Net income		1,244	1,845	601		48.3			3,374	4,400	41.9
(Reference)
R&D expenses		331	583	252		76.3			832	1,580	36.9
Earnings per share	（￥）	44.30	65.69	21.39					120.13	156.61
(EPS)
Return on equity	（％）	1.1	1.6	0.5					2.9
(ROE)
Ratio of ordinary income	（％）	1.5	1.9	0.4					3.8
to total assets
Ratio of operating income	（％）	8.3	11.6	3.3					9.9
to net sales
Return on assets	（％）	1.0	1.4	0.4					2.6
(ROA)

② Financial Conditions

(Millions of Yen)		December 31,	June 30,	Change	Change
	2021	2022	（％）
			A	B	B-A	(B-A)/A
Total assets		130,810	130,806	(4)	(0.0)
Total equity		117,015	118,005	990	0.8
Equity ratio	（％）	89.5	90.2	0.7
Book value per share (BPS)	（￥）	4,165.38	4,199.65	34.27
③ Statement of Cash Flows
			FY2021	FY2022	Change
(Millions of Yen)		First six	First six
			months	months
			A	B	B-A
Net cash provided by operating activities	(1,886)	694	2,580
Net cash used in investing activities		(2,799)	(3,581)	(782)
Net cash used in financing activities		(762)	(829)	(66)
Cash and cash equivalents, end of period	56,127	54,658	(1,469)
④ Capital Expenditures
			FY2021	FY2022	Change	Change
(Millions of Yen)		First six	First six
	（％）
			months	months
			A	B	B-A	(B-A)/A
Capital expenditures		391	549	157	40.2
	PP&E		237	398	161	68.0
	Intangible assets		154	150	(3)	(2.6)
⑤ Depreciation/Amortization
			FY2021	FY2022	Change	Change
(Millions of Yen)		First six	First six
	（％）
			months	months
			A	B	B-A	(B-A)/A
Depreciation and amortization		206	208	1	0.8
	of intangible assets
Amortization of long-term		326	394	67	20.8
	prepaid expenses

FY2021	FY2022
Full year	Revised forecast

822	910
597	550
224	360
FY2021	FY2022
Full year	Revised forecast

1. 450

1. 780

－1－

• Financial Results for the First Six Months of FY2022
• Statement of Income

※1 ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the first six months of FY2021 retroactively. Increase (Decrease) in figures is reference values.

※2 ''Accounting Standard for Revenue Recognition'' etc. have been applied from the beginning of the first three months of FY2022, the forecasts for the FY2022 have already been incorporated the change.

(Millions of Yen)	FY2021	FY2022	Change	Change		FY2022	Progress
First six months	First six months	（％）	Revised forecast※2	ratio (％)
			A	B	B-A	(B-A)/A		C	B/C
Net sales	21,555	23,102	1,547	※1	7.2	※1	49,800	46.4
		Sales of products	21,057	22,926	1,868	※1	8.9	※1	49,520	46.3
		Renal disease and hemodialysis	6,493	5,736	(756) ※1	(11.7) ※1	12,250	46.8
		Skin disease	5,606	6,201	595	※1	10.6	※1	12,590	49.3
		Allergens	6,716	8,401	1,684	※1	25.1	※1	19,510	43.1
		Other	2,241	2,586	344	※1	15.4	※1	5,170	50.0
		Other sales	497	176	(320) ※1 (64.5) ※1	280	63.0
Cost of sales	10,492	12,049	1,556	※1	14.8	※1	25,600	47.1
		Cost of products sold	10,464	12,023	1,558	※1	14.9	※1
		Other cost	28	26	(2)		(7.0)
Gross profit	11,062	11,052	(9) ※1	(0.1) ※1	24,200	45.7
		Selling, general and	9,274	8,370	(903) ※1	(9.7) ※1	18,000	46.5
		administrative expenses
		R&D expenses	331	583	252		76.3		1,580	36.9
		Others	8,942	7,786	(1,156) ※1	(12.9) ※1	16,420	47.4
Operating income	1,788	2,682	894		50.0		6,200	43.3
Non-operating income and expenses	63	(213)	(277)
Ordinary income	1,851	2,468	616		33.3		6,100	40.5
Extraordinary income and loss	(65)	187	252
Income before income taxes	1,786	2,655	869		48.7
Income taxes	542	810	267
Net income	1,244	1,845	601		48.3		4,400	41.9
(Reference) Ratio to net sales
(％)	FY2021	FY2022	Change
First six months	First six months
			A	B	B-A	※1
Cost of sales	48.7	52.2	3.5
SG&A	43.0	36.2	(6.8)	※1
R&D expenses	1.5	2.5	1.0
Operating income	8.3	11.6	3.3
Ordinary income	8.6	10.7	2.1
Net income	5.8	8.0	2.2

－2－

【Factors in increase/decrease compared with the same term of the last fiscal year】

Operating income（￥2,682 million ︓ Increase ￥894 million year-on-year）

• Sales and profits increase with increase in sales of Allergens and CORECTIM.

（millions of yen） 4,000

3,000						9918
				+1,547※		(1,556)※
2,000										+1,156※
						(252)
						2,682
1,000		1,788
0

FY2021	Net sales	Cost of sales	R&D expenses	Others	FY2022
First six months					First six months

• ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the first six months of FY2021 retroactively. Increase (Decrease) in figures is reference values.

Major factors in increase/decrease
Net sales	︓ Increase in sales quantity（CORECTIM, CEDARCURE, MITICURE）
	Decrease due to application of ''Accounting Standard for Revenue Recognition''
	Decrease in the drug price revisions
	Decrease in sales quantity（REMITCH）
Cost of sales	︓ Increase in sales quantity
	Increase due to application of ''Accounting Standard for Revenue Recognition''
R&D expense	︓ Increase in expenses for improvement of the product quality in Allergens
Others	︓ Decrease due to application of ''Accounting Standard for Revenue Recognition''
	Increase in sales-linked expenses

Ordinary income（￥2,468 million ︓ Increase ￥616 million year-on-year）

(FY2022) Non-operating expenses︓Cancellation penalty of a manufacturing contract	¥140 million
Non-operating expenses︓Increase in foreign exchange losses on trade payables etc. due to yen depreciation	+¥112 million

Net income（￥1,845 million ︓ Increase ￥601 million year-on-year）

(FY2022) Extraordinary income︓Gain on sales of investment securities due to reduction of policy shareholdings

¥187 million

－3－

• Sales of Products

※1 ''Accounting Standard for Revenue Recognition'' etc. have been applied from the beginning of the first three months

of FY2022. The standard is different from the revenue recognition in the results for the first six months of the FY2021. Increase (Decrease) in products is not listed.

※2 The accounting standard has not been applied to the results for the first six months of FY2021 retroactively. Increase (Decrease) in figures from the first six months of FY2021 is a reference value.

(Millions of Yen)		FY2021	FY2022	Change	Change（％）
First six months	First six months	※1		※1
				A	B	B-A	(B-A)/A
Sales of Products		21,057	22,926	1,868	※2	8.9	※2
	[Renal disease and hemodialysis]
		Riona		3,166	3,232	－		－
		Agent for hyperphosphatemia, Iron-deficiency anemia
		REMITCH		2,556	1,781	－		－
		Oral anti-pruritus agent
		KAYEXALATE	※3	764	616	－		－
		Agent for hyperkalemia
		Others		5	105	－		－	※2
		Total		6,493	5,736	(756)	※2	(11.7)
	[Skin disease]
		CORECTIM		1,664	2,684	－		－
		Topical Janus kinase (JAK) inhibitor
		ANTEBATE	※3	2,417	2,039	－		－
		Topical corticosteroid
		LOCOID	※3	872	771	－		－
		Topical corticosteroid
		ZEFNART		446	545	－		－
		Topical antifungal agent
		Others		205	161	－		－
		Total		5,606	6,201	595	※2	10.6 ※2
	[Allergens]
		CEDARCURE	※3	3,436	4,307	－		－
		Japanese cedar pollinosis (Allergen Immunotherapy)
		MITICURE	※3	3,143	3,995	－		－
		House dust mite allergy (Allergen Immunotherapy)
		Others		137	98	－		－	※2
		Total		6,716	8,401	1,684	※2	25.1
	[Other]
		BIO-THREE		1,498	1,567	－		－
		Viable bacterial preparations
		Others		743	1,018	－		－	※2
		Total		2,241	2,586	344	※2	15.4
※3 In-house products
(References) Sales and ratio of in-house products
(Millions of Yen)		FY2021	FY2022	Change	Change（％）
First six months	First six months	※1		※1
				A	B	B-A	(B-A)/A
Sales of in-house products	11,179	12,183	－		－
Ratio of in-house product sales （％）	53.1	53.1	－		－

－4－