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

Financial Results for the

First Nine Months of Fiscal Year

Ending December 2022

Ⅰ Summary Information	P.1
①	Financial Results	P.1
②	Financial Conditions	P.1
③	Capital Expenditures	P.1
④	Depreciation/Amortization	P.1
Ⅱ Financial Results for the First Nine 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.

October 31, 2022

TORII PHARMACEUTICAL CO., LTD.

• Summary Information
• Financial Results
  The forecasts for the FY2022 have been changed from the previous forecasts announced at the first six months of FY2022 financial

results announcement on July 29, 2022.

※1 ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the first nine 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			FY2021	FY2022		Progress
(Millions of Yen)		First nine	First nine	Change
	（％）			Full year	Revised forecast※2		ratio (％)
		months	months
		A	B	B-A	(B-A)/A				C		B/C
Net sales		33,437	35,315	1,877	※1	5.6※1	46,987	49,200	71.8
Operating income		3,153	4,066	912		28.9			4,656	6,000	67.8
Ordinary income		3,257	3,918	660		20.3			4,847	6,000	65.3
Net income		2,238	2,856	618		27.6			3,374	4,300	66.4
(Reference)
R&D expenses		511	1,089	577		112.8			832	1,580	68.9
Earnings per share	（￥）	79.68	101.66	21.98					120.13	153.05
(EPS)
Return on equity	（％）	1.9	2.4	0.5					2.9
(ROE)
Ratio of ordinary income	（％）	2.6	3.0	0.4					3.8
to total assets
Ratio of operating income	（％）	9.4	11.5	2.1	※1				9.9
to net sales
Return on assets	（％）	1.8	2.2	0.4					2.6
(ROA)

② Financial Conditions

(Millions of Yen)	December 31,	September 30,	Change	Change
2021	2022	（％）
	A	B	B-A	(B-A)/A

Total assets		130,810	129,677	(1,133)	(0.9)
Total equity		117,015	118,269	1,254	1.1
Equity ratio	（％）	89.5	91.2	1.7
Book value per share (BPS)	（￥）	4,165.38	4,209.07	43.69
③ Capital Expenditures
			FY2021	FY2022		Change
(Millions of Yen)		First nine	First nine	Change
	（％）
			months	months
			A	B	B-A	(B-A)/A
Capital expenditures		453	612	159	35.1
	PP&E		247	452	204	82.5
	Intangible assets		205	159	(45)	(22.2)
④ Depreciation/Amortization
			FY2021	FY2022		Change
(Millions of Yen)		First nine	First nine	Change
	（％）
			months	months
			A	B	B-A	(B-A)/A
Depreciation and amortization	306	342	36	11.9
	of intangible assets
Amortization of long-term		523	592	68	13.1
	prepaid expenses

FY2021	FY2022
Full year	Revised forecast

822	770
597	520
224	250
FY2021	FY2022
Full year	Revised forecast

1. 420

1. 770

－1－

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

※1 "Accounting Standard for Revenue Recognition" etc. have not been applied to the results for the first nine 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 nine months First nine months	（％）	Revised forecast※2	ratio (％)
		A	B	B-A	(B-A)/A		C	B/C
Net sales	33,437	35,315	1,877	※1	5.6	※1	49,200	71.8
	Sales of products	32,833	35,055	2,221	※1	6.8	※1	48,890	71.7
	Renal disease and hemodialysis	9,874	8,756	(1,118)	※1 (11.3)	※1	11,930	73.4
	Skin disease	8,536	9,107	571	※1	6.7	※1	12,890	70.7
	Allergens	10,968	13,077	2,108	※1	19.2	※1	18,370	71.2
	Other	3,454	4,113	658	※1	19.1	※1	5,700	72.2
	Other sales	603	260	(343)	※1 (56.9)	※1	310	84.0
Cost of sales	16,190	18,394	2,204	※1 13.6	※1	25,300	72.7
	Cost of products sold	16,146	18,355	2,208	※1	13.7	※1
	Other cost	43	39	(4)		(10.5)
Gross profit	17,246	16,920	(326)	※1	(1.9)	※1	23,900	70.8
Selling, general and	14,092	12,854	(1,238)	※1	(8.8)	※1	17,900	71.8
	administrative expenses
							1,580	68.9
	R&D expenses	511	1,089	577		112.8
	Others	13,581	11,765	(1,815)	※1 (13.4)	※1	16,320	72.1
Operating income	3,153	4,066	912		28.9		6,000	67.8
Non-operating income and expenses	103	(147)	(251)
Ordinary income	3,257	3,918	660		20.3		6,000	65.3
Extraordinary income and loss	(65)	187	253
Income before income taxes	3,191	4,105	913		28.6
Income taxes	953	1,249	295
Net income	2,238	2,856	618		27.6		4,300	66.4
(Reference) Ratio to net sales
(％)	FY2021	FY2022	Change
First nine months First nine months	※1
		A	B	B-A
Cost of sales	48.4	52.1	3.7
SG&A	42.2	36.4	(5.8)
R&D expenses	1.5	3.1	1.6
Operating income	9.4	11.5	2.1
Ordinary income	9.7	11.1	1.4
Net income	6.7	8.1	1.4

－2－

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

Operating income（￥4,066 million : Increase ￥912 million year-on-year）

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

（millions of yen）

6,000

4,000				+1,877※		9918	※
						(2,204)
											+1,815※
									(577)
2,000		3,153											4,066
0
	FY2021	Net sales		Cost of sales		R&D expenses		Others		FY2022
	First nine months									First nine months

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

Major factors in increase/decrease
Net sales	︓ Increase in sales quantity（CORECTIM, MITICURE, CEDARCURE）
	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 clinical study expenses (TO-208)
	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（￥3,918 million : Increase ￥660 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	+¥96 million

Net income（￥2,856 million : Increase ￥618 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 nine 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 nine months of FY2021 retroactively. Increase (Decrease) in figures from the first nine months of FY2021 is a reference value.

(Millions of Yen)		FY2021	FY2022	Change	Change (％)
	First nine months First nine months	※1		※1
				A	B	B-A	(B-A)/A
Sales of Products		32,833	35,055	2,221	※2	6.8	※2
	[Renal disease and hemodialysis]
		Riona		4,941	5,037	－		－
		Agent for hyperphosphatemia, Iron-deficiency anemia
		REMITCH		3,780	2,613	－		－
		Oral anti-pruritus agent
		KAYEXALATE	※3	1,134	914	－		－
		Agent for hyperkalemia
		Others		18	191	－		－
		Total		9,874	8,756	(1,118)	※2	(11.3)	※2
	[Skin disease]
		CORECTIM		2,669	3,945	－		－
		Topical Janus kinase (JAK) inhibitor
		ANTEBATE	※3	3,546	2,959	－		－
		Topical corticosteroid
		LOCOID	※3	1,254	1,103	－		－
		Topical corticosteroid
		ZEFNART		768	863	－		－
		Topical antifungal agent
		Others		297	236	－		－
		Total		8,536	9,107	571	※2	6.7	※2
	[Allergens]
		CEDARCURE	※3	5,687	6,757	－		－
		Japanese cedar pollinosis (Allergen Immunotherapy)
		MITICURE	※3	5,085	6,171	－		－
		House dust mite allergy (Allergen Immunotherapy)
		Others		196	147	－		－
		Total		10,968	13,077	2,108	※2	19.2	※2
	[Other]
		BIO-THREE		2,308	2,423	－		－
		Viable bacterial preparations
		ORLADEYO	※４	221	959	－		－
		Plasma kallikrein inhibitor
		Others		923	730	－		－
		Total		3,454	4,113	658	※2	19.1	※2
※3 In-house products
※4 Launched in April 2021
(References) Sales and ratio of in-house products
(Millions of Yen)		FY2021	FY2022	Change	Change (％)
	First nine months First nine months	※1		※1
				A	B	B-A	(B-A)/A
Sales of in-house products	17,515	18,598	－		－
Ratio of in-house product sales （％）	53.3	53.1	－		－

－4－