協和キリン（4151） – Consolidated Financial Summary (IFRS) Fiscal 2022 First Quarter

Kyowa Kirin Co., Ltd. Consolidated Financial Summary (IFRS) Fiscal 2022 First Quarter (January 1, 2022 – March 31, 2022) This document is an English translation of parts of the Japanese-language original. Kyowa Kirin Co., Ltd. (4151)SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS (IFRS) for Three Months Ended March 31, 2022 May 10, 2022 Company Name: Kyowa Kirin Co., Ltd. 4151 Stock Code: +81 3 5205 7206 Telephone: Listed Exchanges: Tokyo Stock Exchange President & Chief Executive Officer:Satoko Yoshida Inquiries: Director, Corporate Communications Department Masashi Miyamotohttps://www.kyowakirin.com/index.htmlURL: Scheduled date of submission of Quarterly Securities Report: May 10, 2022 Scheduled start date of dividend payment: – Appendix materials to accompany the quarterly financial report: Yes Quarterly results presentation meeting: Yes (for institutional investors and securities analysts) (Millions of yen rounded off) 1. Consolidated Financial Results for the Three Months Ended March 31, 2022 (1) Consolidated operating results (Percentages indicate year-on-year changes.) Three months ended March 31, 2022 March 31, 2021 Revenue Millions of yen Core operating profit%Millions of yen%Profit before tax Millions of yen Profit% Millions of yen%87,751 81,115 8.24.917,34015,51711.8(7.4)18,71616,16015.8 4.2 16,03812,92124.1(6.7)Total comprehensive income: Three months ended March 31, 2022: ¥19,593 million; (7.5)% Three months ended March 31, 2021: ¥21,184 million; 239.5% Note: Core operating profit was calculated by deducting “selling, general and administrative expenses” and “research and development expenses” from “gross profit,” and adding “share of profit (loss) of investments accounted for using equity method” to the amount. Profit attributable to owners of parent Basic earnings per share Diluted earnings per share Three months ended Millions of yen %March 31, 2022 March 31, 2021 16,038 12,921 24.1(6.7)Yen29.8524.05Yen29.8424.04(2) Consolidated financial position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets As of March 31, 2022 December 31, 2021 Millions of yenMillions of yenMillions of yen 907,816921,872744,453737,162744,453 737,162 %82.080.02. Dividends Fiscal year ended December 31, 2021 Fiscal year ending December 31, 2022 Fiscal year ending December 31, 2022 (Forecast) Dividends per share First quarter-endSecond quarter-endThird quarter-end Fiscal year-end Total Yen––Yen23.0024.00Yen Yen – – 23.00 24.00 Yen46.0048.001Note: Revisions to the dividend forecast most recently announced: None Kyowa Kirin Co., Ltd. (4151)3. Consolidated Earnings Forecasts for the Fiscal Year Ending December 31, 2022 (from January 1, 2022 to December 31, 2022) Revenue Profit before taxProfit Core operating profit (Percentages indicate year-on-year changes.) Profit attributable to owners of parent Basic earnings per share Millions of yen 380,000 % Millions of yen7.9 67,000%2.0Millions of yen66,000%9.9Millions of yen53,000% 1.2 Millions of yen 53,000 %1.2Yen98.64Note: Changes to the earnings forecasts most recently announced: None Full year * Notes (1) Changes to significant subsidiaries during the period (Changes of specified subsidiaries resulting in changes in the scope of consolidation during the period under review): No (2) Changes in accounting policies, and accounting estimates: a. Changes in accounting policies required by IFRS: No b. Changes in accounting policies other than a. above: No c. Changes in accounting estimates: No (3) Number of shares issued (ordinary shares) a. Number of shares issued (including treasury shares) As of March 31, 2022 As of December 31, 2021 b. Number of treasury shares As of March 31, 2022 As of December 31, 2021 c. Average number of shares during the period Three months ended March 31, 2022 Three months ended March 31, 2021 * Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation. * Notice regarding the appropriate use of the earnings forecasts and other special comments The forward-looking statements, including earnings forecasts, contained in these materials are based on the information currently available to the Company and on certain assumptions deemed to be reasonable by management. As such, they do not constitute guarantees by the Company of future performance. Actual results may differ materially from these projections for a wide variety of reasons. 540,000,000 shares540,000,000 shares2,627,073 shares2,671,817 shares537,343,666 shares537,182,044 shares2Kyowa Kirin Co., Ltd. (4151) Attachment Index 1. Operating Results and Financial Statements ………………………………………………………………………… 4 (1) Summary of Consolidated Financial Position …………………………………………………………………… 4 (2) Summary of Consolidated Business Performance ……………………………………………………………. 5 (3) Summary of Consolidated Cash Flows …………………………………………………………………………… 9 (4) Research and Development Activities …………………………………………………………………………… 10 (5) Summary of Consolidated Earnings Forecasts and Other Forward-looking Statements ………. 12 2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto………….. 13 (1) Condensed Quarterly Consolidated Statement of Financial Position …………………………………. 13 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income ……………………………………………………….. 15 (3) Condensed Quarterly Consolidated Statement of Changes in Equity ………………………………… 17 (4) Condensed Quarterly Consolidated Statement of Cash Flows …………………………………………. 19 (5) Notes to Condensed Quarterly Consolidated Financial Statements ………………………………….. 20 Notes on going concern assumption ………………………………………………………………………….. 20 Changes in presentation ……………………………………………………………………………………………. 20 Segment information …………………………………………………………………………………………………. 20 3Kyowa Kirin Co., Ltd. (4151) 1. Operating Results and Financial Statements (1) Summary of Consolidated Financial Position Assets Non-current assets Current assets Liabilities Equity Ratio of equity attributable to owners of parent to total assets (%) As of December 31, 2021921.9As of March 31, 2022 (Billions of yen) Year-on-year change 403.6518.2184.7737.280.0%907.8 409.4 498.4 163.4 744.5 82.0% (14.1) 5.8 (19.9) (21.3) 7.3 2.0% Assets as of March 31, 2022, were ¥907.8 billion, a decrease of ¥14.1 billion compared to the end of the previous fiscal year. Non-current assets increased by ¥5.8 billion compared to the end of the previous fiscal year, to ¥409.4 billion, due mainly to an increase in deferred tax assets. Current assets were ¥498.4 billion, a decrease of ¥19.9 billion compared to the end of the previous fiscal year, mainly reflecting a decrease in trade and other receivables as well as a decrease in cash and cash equivalents due to the payment of dividends and income taxes. Liabilities as of March 31, 2022, were ¥163.4 billion, a decrease of ¥21.3 billion compared to the end of the previous fiscal year, due mainly to decreases in income taxes payable and trade and other payables. Equity as of March 31, 2022, was ¥744.5 billion, an increase of ¥7.3 billion compared to the end of the previous fiscal year, due mainly to an increase due to the recording of profit attributable to owners of parent as well as an increase in exchange differences on translation of foreign operations resulting from the impact of exchange rates, despite a decrease due to the payment of dividends, etc. As a result, the ratio of equity attributable to owners of parent to total assets as of the end of the first quarter was 82.0%, an increase of 2.0 percentage points compared to the end of the previous fiscal year. 4Kyowa Kirin Co., Ltd. (4151) (2) Summary of Consolidated Business Performance 1) Overview of results The Group now applies the International Financial Reporting Standards (“IFRS”) in line with its policy of expanding business globally, and adopts “core operating profit” as a level of profit that shows the recurring profitability from operating activities. Core operating profit is calculated by deducting “selling, general and administrative expenses” and “research and development expenses” from “gross profit,” and adding “share of profit (loss) of investments accounted for using equity method” to the amount. Three months ended March 31, 2021Three months ended March 31, 2022Year-on-year change Rate of change(%) (Billions of yen) Revenue Core operating profit Profit before tax Profit attributable to owners of parent < Average exchange rates for each period > USD (USD/¥) GBP (GBP/¥) CNY (CNY/¥) 81.115.516.212.9¥105¥143¥16.187.817.318.716.0¥114¥154¥18.06.6 1.8 2.6 3.1 8.2%11.8%15.8%24.1%Up ¥9 Up ¥11 Up ¥1.9 Currency Three months ended March 31, 2021Three months ended March 31, 2022Year-on-year change For the three months ended March 31, 2022 (January 1, 2022 to March 31, 2022), revenue was ¥87.8 billion (up 8.2% compared to the same period of the previous fiscal year), and core operating profit was ¥17.3 billion (up 11.8%). Profit attributable to owners of parent was ¥16.0 billion (up 24.1%). The increase in revenue was the result of growth of global strategic products in North America and EMEA and a rise in revenue from technology out-licensing, despite lower revenue in Japan. The positive effect on revenue from foreign exchange was ¥3.6 billion. Core operating profit rose, despite increases in selling, general and administrative expenses and research and development expenses, due to higher gross profit resulting from an increase in overseas revenue and a rise in revenue from technology out-licensing. The positive effect on core operating profit from foreign exchange was ¥1.2 billion. Profit attributable to owners of parent increased as a result of an increase in finance income and a decrease in income tax expense in addition to an increase in core operating profit. 5Kyowa Kirin Co., Ltd. (4151)2) Revenue by regional control function Japan North America EMEA Asia/Oceania Others Total consolidated revenue Three months ended March 31, 2021 39.2 Three months ended March 31, 2022 35.4 15.9 12.0 6.9 7.1 81.1 20.7 14.5 7.2 9.8 87.8 (Billions of yen) Year-on-year change Rate of change (%) (3.8) 4.8 2.5 0.4 2.7 6.6 (9.6)%30.5%20.8%5.2%38.2%8.2%Notes: 1. Revenue by regional control function is classified based on consolidated revenue from products of regional control functions in the One Kyowa Kirin structure (a global management structure with axes combining four regions – Japan, North America, EMEA, and Asia/Oceania – and the functions needed by a global specialty pharmaceutical company). 2. EMEA consists of Europe, the Middle East, Africa, etc. 3. Others consists of revenue from technology out-licensing, original equipment manufacturing, etc. 6 2020. 2019. Crysvita Poteligeo Nourianz Abstral Regpara Gran Kyowa Kirin Co., Ltd. (4151)< Revenue of major products (Japan) > Patanol Darbepoetin Alfa Injection Syringe [KKF] Duvroq Romiplate G-Lasta Three months ended March 31, 20216.55.5 Three months ended March 31, 20221.84.4 0.2 1.5 6.6 1.1 2.2 7.1 (Billions of yen) Year-on-year change Rate of change (%) (4.7) (1.1) 0.9 0.7 0.5 (71.9)%(20.1)%569.7%44.3%8.0%Crysvita Revenue in Japan decreased year on year due to the significant decrease in revenue from Patanol®, anti-allergy eye drops, in addition to the impact of the reductions in drug price standards implemented in April 2021, despite the growth in sales of new product groups, such as Duvroq®, a treatment for renal anemia. 31.2%1.5 2.0 0.5 Revenue from Patanol®, anti-allergy eye drops, decreased due to the release of a generic in December 2021. Revenue from Darbepoetin Alfa Injection Syringe [KKF] decreased due to the impact of the reductions in drug price standards and the market penetration of rival products. Revenue from Duvroq®, a treatment for renal anemia, has been growing since its launch in August Revenue from ROMIPLATE®, a treatment for chronic idiopathic thrombocytopenic purpura, increased due to the impact in the first three months of the previous fiscal year from adjustments of shipments to distributors (June 2020 to March 2021). Revenue from G-Lasta®, an agent for decreasing the incidence of febrile neutropenia, increased. Crysvita®, a treatment for FGF23-related diseases, has been growing since its launch in December < Revenue of major products (overseas) > Three months ended March 31, 2021 16.3 Three months ended March 31, 2022 22.2 3.2 1.0 1.8 2.2 1.3 4.2 1.1 1.4 1.0 2.1 (Billions of yen) Year-on-year change Rate of change (%) 6.0 1.1 0.2 (0.4) (1.3) 0.8 36.6%33.7%18.9%(21.9)%(56.1)%60.4% Revenue in North America increased year on year due to the growth of global strategic products. Revenue from Crysvita®, a treatment for X-linked hypophosphatemia, has been growing since its launch in 2018. Revenue from POTELIGEO®, an anticancer agent, increased. Revenue from NOURIANZ™ (product name in Japan: NOURIAST®), an antiparkinsonian agent, has been growing since its launch in October 2019. Revenue in EMEA increased year on year due to the growth of global strategic products. Revenue from Crysvita®, a treatment for X-linked hypophosphatemia, has been growing as the number of countries where it has been released has been increasing since its launch in 2018. Revenue from POTELIGEO®, an anticancer agent, has been growing as the number of countries where it has been released has been increasing since its launch in June 2020. 7Kyowa Kirin Co., Ltd. (4151) Revenue from Abstral®, a treatment for cancer pain, decreased due to the impact of the market penetration of generics. Revenue in Asia/Oceania increased year on year. Revenue from REGPARA®, a treatment for secondary hyperparathyroidism, declined after it became subject to China’s centralized governmental purchasing system in October 2021. Revenue from Gran®, a neutropenia treatment drug, increased particularly in South Korea. < Revenue from Others > 3) Core operating profit Revenue from Others increased year on year. Technology out-licensing increased due to the recognition of revenue of upfront payment of USD400 million over a certain period in conjunction with the conclusion of an agreement in 2021 with Amgen Inc. to jointly develop and commercialize KHK4083, anti-OX40 fully human monoclonal antibody for the treatment of atopic dermatitis, in addition to an increase in royalties revenue from AstraZeneca in relation to benralizumab. Core operating profit increased compared to the same period of the previous fiscal year due mainly to an increase in gross profit due to an increase in revenue from U.S. and Europe, mainly from global strategic products, and in revenue from technology out-licensing, despite increases in research and development expenses mainly regarding progress in development of next-generation strategic products, in addition to increases in selling, general and administrative expenses related to investments in human resources and in IT/digital platform aimed at maximizing the value of global strategic products and rapidly establishing competitive global business bases. 8Kyowa Kirin Co., Ltd. (4151)(3) Summary of Consolidated Cash Flows Three months ended March 31, 2021Three months ended March 31, 2022Year-on-year change Rate of change(%) (Billions of yen) Net cash provided by (used in) operating activitiesNet cash provided by (used in) investing activitiesNet cash provided by (used in) financing activitiesCash and cash equivalents at beginning of periodCash and cash equivalents at end of period 14.4(4.6)(13.5)287.0283.88.8(4.6)(13.2)335.1326.5(5.6) (0.0) 0.2 48.1 42.7 (38.9)%0.0%(1.8)%16.7%15.1% Cash and cash equivalents as of March 31, 2022 were ¥326.5 billion, a decrease of ¥8.6 billion compared with the balance of ¥335.1 billion as of December 31, 2021. The main contributing factors affecting cash flow during the three months ended March 31, 2022 were as follows: Net cash provided by operating activities was ¥8.8 billion, compared with net cash provided by operating activities of ¥14.4 billion in the same period of the previous fiscal year. Major inflows included decrease (increase) in trade receivables of ¥9.7 billion in addition to profit before tax of ¥18.7 billion and depreciation and amortization of ¥4.6 billion. Major outflows included income taxes paid of ¥10.1 billion and decrease (increase) in inventories of ¥4.3 billion. Net cash used in investing activities was ¥4.6 billion, compared with net cash used in investing activities of ¥4.6 billion in the same period of the previous fiscal year. Major outflows included ¥4.2 billion for purchase of property, plant and equipment. Major inflows included proceeds from sale of investment securities of ¥0.7 billion. Net cash used in financing activities was ¥13.2 billion, compared with net cash used in financing activities of ¥13.5 billion in the same period of the previous fiscal year. Major outflows included dividends paid of ¥12.4 billion. 9Kyowa Kirin Co., Ltd. (4151)(4) Research and Development Activities The Group continuously and actively invests resources in research and development activities. We aim to advance both a technological pillar that can build a platform for applying various modalities and discovering innovative drugs and a disease pillar that continues to provide “only-one value drugs” for diseases for which there are no effective treatments while utilizing the disease science accumulated by the Group thus far, build a highly competitive pipeline, and provide new drugs with life-changing value worldwide. For the three months ended March 31, 2022, the Group’s research and development expenses totaled ¥13.6 billion, and our progress in the respective disease fields of our main late-stage development products are as follows. Oncology KRN125 (product name in Japan: G-Lasta®) Central nervous system (CNS) KW-6002 (product name in Japan: NOURIAST®) In February 2022, we obtained approval of its indication for treatment of the mobilization of hematopoietic stem cells into peripheral blood for allogenic blood stem cell transplantation in Japan. In Europe, we had applied for approval of its indication for combination therapy with levodopa-based regimens for adult patients with Parkinson’s disease experiencing “off” episodes, but we discontinued development in February as we received the decision that it was not approved by the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA). Other AMG531 (product name in Japan: Romiplate®) In January 2022, we obtained approval of its indication for treatment of adult patients with chronic Immune Thrombocytopenia (ITP) who do not respond well to other treatments, such as corticosteroids and immunoglobulin in China. R&D pipeline 10 Kyowa Kirin Co., Ltd. (4151) 11 Kyowa Kirin Co., Ltd. (4151) (5) Summary of Consolidated Earnings Forecasts and Other Forward-looking Statements No revisions have been made to the consolidated earnings forecasts announced on February 7, 2022. There are no raw materials for the Company’s products that are procured from Russia or Ukraine. In addition, since the Company does not conduct direct business operations in these countries, the Company’s business, including the present product supply, has not been significantly affected. However, if Russia’s invasion continues for a prolonged period or expands to neighboring countries in Europe, etc., there could be an impact on the Company’s business due to turmoil in the global economy and exchange rates caused by significant fluctuations in energy prices or disruptions in internet infrastructure from cyberattacks, as well as due to delays in procuring raw materials, materials and active pharmaceutical ingredients, importing and exporting, conducting clinical trials and carrying out sales activities. 12Kyowa Kirin Co., Ltd. (4151)2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto (1) Condensed Quarterly Consolidated Statement of Financial Position As of December 31, 2021 As of March 31, 2022(Millions of yen) Assets Non-current assetsProperty, plant and equipment Goodwill Intangible assetsOther financial assets Retirement benefit asset Deferred tax assets Other non-current assets Total non-current assets Current assets Inventories Trade and other receivables Other financial assets Other current assets Cash and cash equivalents Total current assets Total assets 78,652 136,352 76,066 45,164 15,298 49,108 3,000 403,641 64,089 104,275 1,434 13,350 335,084 518,231 921,872 78,595137,70375,69345,72614,92153,6043,198409,44066,16195,5611,0719,111326,472498,376907,816 13 (1) Condensed Quarterly Consolidated Statement of Financial Position (continued) Kyowa Kirin Co., Ltd. (4151)As of December 31, 2021 As of March 31, 2022 (Millions of yen) Other components of equity Total equity attributable to owners of parent Liabilities from application of equity method Equity Share capital Capital surplus Treasury shares Retained earnings Total equity Liabilities Non-current liabilities Retirement benefit liability Provisions Deferred tax liabilities Other financial liabilities Other non-current liabilities Total non-current liabilities Current liabilities Trade and other payables Provisions Other financial liabilities Income taxes payable Other current liabilities Total current liabilities Total liabilities Total equity and liabilities 26,745 464,153 (3,359) 255,528 (5,904) 737,162 737,162 19,426 221 7,757 386 16,594 31,197 75,581 64,652 1,580 5,943 13,426 23,528 109,129 184,710 921,872 26,745 464,200 (3,285) 259,273 (2,480) 744,453 744,453 18,223 261 7,757 394 16,802 29,459 72,896 56,939 1,254 4,207 3,961 24,106 90,467 163,363 907,816 14(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income Condensed Quarterly Consolidated Statement of Profit or Loss Kyowa Kirin Co., Ltd. (4151)(Millions of yen) January 1, 2021 to March 31, 2021 81,115 (22,392) January 1, 2022 to March 31, 2022 87,751 (22,159) Revenue Cost of sales Gross profit Selling, general and administrative expenses Research and development expenses Share of profit (loss) of investments accounted for using equity method Other income Other expenses Finance income Finance costs Profit before tax Income tax expense Profit Profit attributable to Owners of parent Earnings per share Basic earnings per share (Yen) Diluted earnings per share (Yen) 58,723 (31,651) (12,193) 637 208 (176) 705 (95) 16,160 (3,239) 12,921 12,921 24.05 24.04 65,592 (36,085) (13,609) 1,442 406 (200) 1,812 (642) 18,716 (2,677) 16,038 16,038 29.85 29.84 15Condensed Quarterly Consolidated Statement of Comprehensive Income Kyowa Kirin Co., Ltd. (4151)(Millions of yen) January 1, 2021 to March 31, 2021 January 1, 2022 to March 31, 2022 12,921 16,038 Profit Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income Total of items that will not be reclassified to profit or loss Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations Share of other comprehensive income of investments accounted for using equity method Total of items that may be reclassified to profit or loss Other comprehensive income Comprehensive income Comprehensive income attributable to Owners of parent 446 446 7,791 26 7,817 8,263 21,184 21,184 19,593 533 533 2,915 108 3,022 3,555 19,593 16(3) Condensed Quarterly Consolidated Statement of Changes in Equity January 1, 2021 to March 31, 2021 Equity attributable to owners of parent Share capital Capital surplus Treasury sharesRetained earnings Balance at January 1, 2021 26,745463,967(3,545)226,639 596 (17,915)Kyowa Kirin Co., Ltd. (4151)(Millions of yen) Other components of equity Exchange differences on translation of foreign operationsShare acquisition rights–––––52328––––(5)14303912,921 12,921 (11,818) – – – – (11,818) – – – – – – (19) (19) 576 7,8177,817––––––Balance at March 31, 2021 26,745463,995(3,506)227,742 (10,098)Profit Other comprehensive income Total comprehensive income Dividends of surplus Purchase of treasury shares Disposal of treasury shares Share-based remuneration transactions Total transactions with owners Equity attributable to owners of parent Other components of equity Financial assets measured at fair value through other comprehensive incomeTotal Total equity Total Balance at January 1, 2021 1,909(15,410)698,396698,396 Profit Other comprehensive income Total comprehensive income Dividends of surplus Purchase of treasury shares Disposal of treasury shares Share-based remuneration transactions Total transactions with owners 8,2638,263––––(19)(19)(11,818)(11,818) 12,9218,26321,184(5)193412,921 8,263 21,184 (5) 19 34 (11,770)(11,770) Balance at March 31, 2021 2,355(7,167)707,810707,810 –––––––––446446––––– 17Kyowa Kirin Co., Ltd. (4151)(3) Condensed Quarterly Consolidated Statement of Changes in Equity (continued) January 1, 2022 to March 31, 2022 Equity attributable to owners of parent Share capital Capital surplus Treasury sharesRetained earnings (Millions of yen) Other components of equity Exchange differences on translation of foreign operationsShare acquisition rightsBalance at January 1, 2022 26,745464,153(3,359)255,528 414 (7,299)Profit Other comprehensive income Total comprehensive income Dividends of surplus Purchase of treasury shares Disposal of treasury shares Share-based remuneration transactions Transfer from other components of equity to retained earnings Total transactions with owners Profit Other comprehensive income Total comprehensive income Dividends of surplus Purchase of treasury shares Disposal of treasury shares Share-based remuneration transactions Transfer from other components of equity to retained earnings Balance at March 31, 2022 26,745464,200(3,285)259,273 (4,277)Equity attributable to owners of parent Other components of equity Financial assets measured at fair value through other comprehensive incomeTotal Total equity Total Balance at January 1, 2022 (5,904)737,162737,162 16,038 16,038 (12,359) – – – – 66 (12,293) – – – – – – – (65) (65) 349 3,0223,022––––––––––––9–38473,5553,555––––(65)(66)–––––––––980–533533––––(66)(66)––––(1)5619–75(1)65(8)–16,0383,55519,59316,038 3,555 19,593 (12,359)(12,359) (1) 65 (8) – Total transactions with owners (131)(12,302)(12,302) Balance at March 31, 2022 1,447(2,480)744,453744,453 18(4) Condensed Quarterly Consolidated Statement of Cash Flows Kyowa Kirin Co., Ltd. (4151)January 1, 2021 to March 31, 2021 (Millions of yen) January 1, 2022 toMarch 31, 2022 Cash flows from operating activities Profit before tax Depreciation and amortization Impairment losses (reversal of impairment losses) Increase (decrease) in provisions Share of loss (profit) of investments accounted for using equity method Decrease (increase) in inventories Decrease (increase) in trade receivables Increase (decrease) in trade payables Increase (decrease) in contract liabilities Income taxes paid Other Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Proceeds from sale of investment securities Other Net cash provided by (used in) investing activities Cash flows from financing activities Repayments of lease liabilities Purchase of treasury shares Dividends paid Other Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 16,160 4,660 (54) (639) (637) (1,150) 1,942 380 (221) (4,501) (1,535) 14,404 (2,960) (1,590) – (88) (4,638) (851) (5) (11,818) (788) (13,462) 440 (3,256) 287,019 283,763 18,7164,574–(387)(1,442)(4,320)9,694(1,666)(2,018)(10,089)(4,254)8,807(4,211)(1,015)728(143)(4,640)(866)(1)(12,359)2(13,223)444(8,612)335,084326,47219Kyowa Kirin Co., Ltd. (4151)(5) Notes to Condensed Quarterly Consolidated Financial Statements Notes on going concern assumption No applicable items. Changes in presentation Condensed Quarterly Consolidated Statement of Cash Flows “Increase (decrease) in contract liabilities,” which had previously been included in “Other” of “Cash flows from operating activities” in the three months ended March 31, 2021, has been listed independently because its monetary importance has increased. To reflect this change in the presentation method, we have reorganized our Condensed Quarterly Consolidated Financial Statements for the three months ended March 31, 2021. As a result, in the Condensed Quarterly Consolidated Statement of Cash Flows for the three months ended March 31, 2021, negative ¥1,756 million presented as “Other” in “Cash flows from operating activities” was reorganized into “Increase (decrease) in contract liabilities” of negative ¥221 million and “Other” of negative ¥1,535 million. Segment information The Group omitted information by reportable segment as the Group consists of only the one reportable segment, which is the Pharmaceuticals business. 20