中外製薬（4519） – CONSOLIDATED FINANCIAL STATEMENTS (IFRS) (Non-Audited)(for the first quarter of the fiscal year 2022)

NOTICE: For the convenience of capital market participants, Chugai makes efforts to provide English translations of the information disclosed in Japanese,provided that the Japanese original prevails over its English translation in the case of any discrepancy found between documentation. April 25, 2022 CONSOLIDATED FINANCIAL STATEMENTS (IFRS) (Non-Audited)(for the first quarter of the fiscal year 2022) Name of Company:Chugai Pharmaceutical Co., Ltd.Tokyo Stock ExchangeStock Listing:4519 (URL https://www.chugai-pharm.co.jp/english)Security Code No.:Osamu Okuda, President & CEORepresentative:Toshiya Sasai, Head of Corporate Communications DepartmentContact:Phone:+81-(0)3-3273-0554Date of Submission of Quarterly Marketable Securities Filings: April 26, 2022Date on which Dividend Payments to Commence: －Supplementary Materials Prepared for the Quarterly Financial Statements: Yes Presentation Held to Explain the Quarterly Financial Statements: Yes (for institutional investors, securities analysts and the media)(Note: Amounts of less than one million yen are rounded.)1. Consolidated results for the first quarter of FY 2022 (January 1, 2022–March 31, 2022)(1) Consolidated operating resultsFirst three months of FY 2022¥360,554 million113.6¥187,007 million192.3¥131,775 million177.9First three months of FY 2021¥168,817 million(5.9)¥63,967 million(11.7)¥47,411 million(8.0)Revenues% change Operating profit % changeNet income% change Net incomeattributable toChugai shareholders% change% changeTotalcomprehensiveincomeFirst three months of FY 2022¥131,775 million177.9¥127,822 million147.3First three months of FY 2021¥47,411 million(8.0)¥51,688 million3.1First three months of FY 2022First three months of FY 2021Earnings per share (Basic)¥80.14¥28.84Earnings per share(Diluted)¥80.09¥28.82Note: Percentages represent changes compared with the same period of the previous fiscal year.(2) Consolidated results (balance sheet) Total assetsTotal equityEquity attributable to Chugai shareholdersRatio of equity attributable to Chugai shareholdersAs of Mar. 31, 2022¥1,584,948 million¥1,240,510 million¥1,240,510 millionAs of Dec. 31, 2021¥1,538,694 million¥1,188,017 million¥1,188,017 million78.3%77.2% 2. DividendsEnd of first quarter－End of secondquarter¥30.00Annual dividends per shareEnd of third quarter－End of fiscal yearFY ended Dec. 2021FY ending Dec. 2022FY ending Dec. 2022(Forecast)Note: Whether the most recent dividend forecast has been revised: No¥38.00 － －¥46.00 ¥38.00Total¥76.00 ¥76.00 3. Consolidated forecasts on Core basis for FY 2022 (January 1, 2022–December 31, 2022)First three months of FY2022 (Results)FY ending Dec. 2022 (Forecast)Core revenues% change% changeCore net income% changeCore operating profit¥268,639 million+23.4¥98,946 million+22.5¥70,595 million+22.6¥1,150,000 million+15.0¥440,000 million+1.4¥312,500 million+0.3Core earnings per shareCore dividend payout ratio %First three months of FY2022 (Results)FY ending Dec. 2022 (Forecast)Notes: 1. Except for Core dividend payout ratio, percentages represent changes compared with the same period of the previousfiscal year for the forecasts, and the percentage of forecast levels that have been achieved to date for the results.¥190.00¥42.91+22.6+0.340.0－2. Whether the most recent forecasts for consolidated figures have been revised: No3. The figures for the consolidated forecasts and actuals are calculated based on Core basis indicators established byChugai and used on a consistent basis. Core EPS is diluted earnings per share attributable to Chugai shareholders on aCore basis. 4. Others(1) Changes in the state of material subsidiaries during the period (Changes in the state of specific subsidiaries with change in scopeof consolidation): None(2) Changes in accounting policies and changes in accounting estimates(a) Changes in accounting policies required by IFRS: None(b) Changes in accounting policies other than those in (a) above: None(c) Changes in accounting estimates: None (3) Number of shares issued (common stock):(a) Number of shares issued at the end of the period (including treasury stock)(b) Number of treasury stock at the end ofthe periodAs of Mar. 31, 20221,679,057,667 As of Dec. 31, 20211,679,057,667As of Mar. 31, 202234,584,281 As of Dec. 31, 202134,739,943(c) Average number of shares issued duringthe period (three months)First three months ofFY 20221,644,365,731First three months ofFY 20211,643,941,381 Notes:The quarterly financial statements are not subject to quarterly reviews. Explanation of the appropriate use of performance forecasts and other related items(1) Portions of this report that refer to performance forecasts or any other future events are believed to be reasonable underinformation available at the time of the forecasts. Actual results may differ from these forecasts due to potential risks anduncertainties.(2) The forecast which is published for shareholders and investors is based on the internal management indicator Core basis underInternational Financial Reporting Standards (“IFRS”). The difference between IFRS results and Core results will be explained ateach event and presentation.(3) For the specifics of the forecasts, please refer to “Consolidated Forecasts and Other forward-looking Statements” on page 6 ofthe attachment.(4) Chugai is scheduled to hold a tele-conference as noted below. The presentation materials, the verbal recording, the Q&A, andother related documents will be posted on the Chugai’s website following the conclusion of the conference.Tele-conference for institutional investors, securities analysts and the media (Japanese only): April 25, 2022, Monday (Japantime). The English translation of the presentation materials will be posted on the website on the next business day. Index of the Attachment 1. Qualitative Information ……………………………………………………………………………………………………………………………….2(1) Consolidated operating results ………………………………………………………………………………………………………………….. 2(2) Consolidated financial position …………………………………………………………………………………………………………………. 5(3) Consolidated forecasts and other forward-looking statements …………………………………………………………………….. 62. Interim Condensed Consolidated Financial Statements and Major Notes …………………………………………………….. 7(1) Interim condensed consolidated income statement and interim condensed consolidated statement of comprehensive income ………………………………………………………………………………………………………………………………7(2) Interim condensed consolidated balance sheet ……………………………………………………………………………………………..9(3) Interim condensed consolidated statement of cash flows ……………………………………………………………………………….10(4) Interim condensed consolidated statement of changes in equity ……………………………………………………………………..11(5) Notes regarding the going concern assumption …………………………………………………………………………………………….12(6) Notes regarding the interim condensed consolidated financial statements ………………………………………………………. 12 – 1 -1. Qualitative Information(1) Consolidated operating results in billions of yen First three months of FY 2022.12(Jan. 1, 2022–Mar. 31, 2022)First three months of FY 2021.12(Jan. 1, 2021–Mar. 31, 2021)% change Core resultsRevenuesSalesRoyalties and other operatingincomeCost of salesGross profitMarketing and distributionResearch and developmentGeneral and administrationOperating profitNet income IFRS resultsRevenuesOperating profitNet income268.6242.725.9(114.1)154.5(16.7)(32.9)(6.0)98.970.6360.6187.0131.8168.8130.338.6(55.0)113.8(15.8)(28.7)(3.9)65.448.4168.864.047.4+59.1+86.3(32.9)+107.5+35.8+5.7+14.6+53.8+51.2+45.9+113.6+192.2+178.1 Consolidated financial highlights (IFRS results)Revenues for the three months under review were ¥360.6 billion (an increase of 113.6% year on year), operatingprofit for the three months under review was ¥187.0 billion (an increase of 192.2% year on year), and net incomefor the three months under review was ¥131.8 billion (an increase of 178.1% year on year). These results includenon-Core items, such as amortization of intangible assets of ¥0.3 billion, impairment loss of intangible assets of¥0.2 billion, and restructuring expenses etc. of ¥3.4 billion, as well as the income from the lump-sum payment of¥91.9 billion recognized as a result of a settlement agreement between Chugai and Alexion Pharmaceuticals, Inc.,which are excluded from the Core results that Chugai adopts to manage recurring business activities. Consolidated financial highlights (Core results)Revenues for the three months under review were ¥268.6 billion (an increase of 59.1% year on year), due to asignificant increase in sales, despite a decrease in royalties and other operating income. Of revenues, sales were ¥242.7 billion (an increase of 86.3% year on year). Within domestic sales the sales grewsignificantly over the previous fiscal year primarily due to the favorable sales of the mainstay product Hemlibra,the steady market penetration of new products such as Polivy, Evrysdi and Enspryng, and the supply of Ronapreveto the government, while sales were affected by the NHI drug price revisions of April 2021 and market penetrationof generic drugs. Overseas sales increased significantly compared to the previous fiscal year due to the majorincrease in the exports of Hemlibra and Actemra to Roche. Royalties and other operating income amounted to¥25.9 billion (a decrease of 32.9% year on year), due to a significant decrease in royalty income from initialshipments of Hemlibra. Furthermore, cost to sales ratio was 47.0%, a 4.8 percentage point deterioration year onyear, reflecting a change in the product mix and other factors. As a result, gross profit amounted to ¥154.5billion (an increase of 35.8% year on year). Operating expenses were ¥55.6 billion (an increase of 14.6% year on year). Marketing and distribution expenseswere ¥16.7 billion (an increase of 5.7% year on year) due to increased activities by the overseas subsidiaries andthe effects of foreign exchange. Research and development expenses amounted to ¥32.9 billion (an increase of14.6% year on year) due to an increase in expenses associated with the progress of projects, etc. General andadministration expenses amounted to ¥6.0 billion (an increase of 53.8% year on year) primarily due to increases inthe enterprise tax (pro forma standard taxation) and various expenses. As a result, operating profit was ¥98.9billion (an increase of 51.2% year on year) and net income was ¥70.6 billion (an increase of 45.9% year on year). – 2 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022) With regard to the effects of the changing situation in Russia and Ukraine on operating performance for the threemonths under review, given that Chugai is not directly engaged in any business activities in such countries, therewas no major negative impact on revenues and profits. While the progress of certain trials led by Roche beingconducted in Russia, Ukraine, and the surrounding countries has been affected, the impact on research anddevelopment activities as a whole has been limited. Furthermore, despite the absence of any contractmanufacturers or suppliers of raw materials in the countries concerned, Chugai will continue to closely monitor thesituation, including the effects which may materialize, should the situation become long-term. Note: Core resultsChugai discloses its results on a Core basis from 2013 in conjunction with its transition to IFRS. Core results arethe results after adjusting non-recurring items recognized by Chugai to IFRS results. Chugai’s recognition of non-recurring items may differ from that of Roche due to the difference in the scale of operations, the scope of businessand other factors. Core results are used by Chugai as an internal performance indicator, for explaining the status ofrecurring profits both internally and externally, and as the basis for payment-by-results. For further details regarding the adjustment to IFRS results, please refer to the Supplementary Materials on page 1,entitled “Reconciliation of IFRS results to Core results.” Sales breakdown in billions of yen SalesDomestic salesOncologyPrimaryOverseas salesFirst three months of FY 2022.12(Jan. 1, 2022–Mar. 31, 2022)First three months of FY 2021.12(Jan. 1, 2021–Mar. 31, 2021) 242.7161.758.4103.281.0130.394.957.936.935.4% change+86.3+70.4+0.9+179.7+128.8 Domestic salesDomestic sales were ¥161.7 billion (an increase of 70.4% year on year) due to the favorable market penetration ofmainstay products and new products, while sales were significantly affected by the NHI drug price revisions ofApril 2021 and the market penetration of generic drugs. Oncology products sales were ¥58.4 billion (an increase of 0.9% year on year). Sales of Kadcyla (an anti-HER2antibody-tubulin polymerization inhibitor conjugate) were favorable, despite a sales decline of Avastin (an anti-VEGF humanized monoclonal antibody, anti-cancer agent) and Herceptin (an anti-HER2 humanized monoclonalantibody, anti-cancer agent) affected by the NHI drug price revisions and market penetration of generic drugs.Together with the growth of the new product Polivy (an antimicrotubule binding anti-CD79b monoclonal antibody,anti-cancer agent) and the increase in the number of tests provided by the Foundation Medicine genomic mutationanalysis program*, sales increased. Primary products sales were ¥103.2 billion (an increase of 179.7% year on year). This was mainly due to thefavorable sales of mainstay products, Hemlibra (blood coagulation factor VIII substitute) and Actemra (ahumanized anti-human IL-6 receptor monoclonal antibody), despite a sales decline of products including Mircera(a long-acting erythropoiesis stimulating agent) affected by the NHI drug price revisions and market penetration ofgeneric drugs. As for new products, recognizing sales from the supply of Ronapreve (anti-SARS-CoV-2monoclonal antibody) to the government, which received the special approval for emergency in July 2021,contributed to sales, as did the favorable market penetration of Enspryng (a pH-dependent binding humanized anti-IL-6 receptor monoclonal antibody) and Evrysdi (SMN2 splicing modifier). * “FoundationOne Liquid CDx Cancer Genomic Profiling” and “FoundationOne CDx Cancer Genomic Profiling” Overseas salesOverseas sales amounted to ¥81.0 billion (an increase of 128.8% year on year), far exceeding that of the previousfiscal year. The export of Hemlibra to Roche significantly increased to ¥44.2 billion (an increase of 452.5% yearon year), as export at a regular shipping price got underway, despite a decrease in the export of Alecensa (an ALKinhibitor, anti-cancer agent) to Roche compared to the previous fiscal year. In addition, sales of Actemra, whichwas approved in Europe in December 2021 to treat patients with severe COVID-19, were favorable. – 3 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022) R&D activitiesR&D expenses on a Core basis for the first three months under review totaled ¥32.9 billion (an increase of 14.6%year on year), and the ratio of R&D expenses to revenues was 12.2%. Progress made in R&D activities during the period from January 1, 2022 to March 31, 2022 was as follows. Oncology● We obtained approval in March 2022 for the combination therapy of HER2 dimerization inhibitoryhumanized monoclonal antibody RG1273 (Product name: Perjeta) and anti-HER2 humanized monoclonalantibody RG597 (Product name: Herceptin) for the additional indication of advanced or recurrent HER2-positive colon cancer or rectal cancer not amenable to curative resection that has progressed after cancerchemotherapy.● We filed for a glycoengineered type II anti-CD20 monoclonal antibody RG7159 (Product name: Gazyva) forthe treatment of chronic lymphocytic leukemia in March 2022.● We started Phase I study for an anti-CD20/CD3 bispecific antibody RG7828 for the treatment of follicular● We decided to discontinue the development of AMY109 for solid tumors in consideration of the results of thelymphoma (3rd Line) in March 2022.Phase I study. Hematology● We started Phase I study for an anti-C5 recycling antibody SKY59/RG6107 for the treatment of acute sicklecell disease and Phase II study for the treatment of chronic sickle cell disease in March 2022, respectively. Ophthalmology● We obtained approval for an anti-VEGF/anti Ang-2 bispecific antibody RG7716 (Product name: Vabysmo)indications of age-related macular degeneration associated with subfoveal choroidalfor neovascularization and diabetic macular edema in March 2022.the ● We started Phase I/II study for a humanized anti-VEGF monoclonal antibody fragment (Fab) RG6321 [PDS(Port Delivery System with ranibizumab)] for the treatment of neovascular age-related macular degenerationand diabetic macular edema in March 2022. Other Diseases● We obtained approval for a humanized anti-human IL-6 receptor monoclonal antibody MRA/RG1569(Product name: Actemra) for the additional indication of SARS-CoV-2 pneumonia (limited to patientsrequiring oxygen intervention) in January 2022.● We decided to discontinue the development of an anti-FGFR1/KLB bispecific antibody RG7992 for non-alcoholic steatohepatitis in consideration of the results of a study conducted by Roche overseas.- 4 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022) March 31, 2022December 31, 2021Change in amount(2) Consolidated financial positionAssets, liabilities and net assets in billions of yenNet operating assets (NOA) and Net assetsNet working capitalLong-term net operating assetsNet operating assets (NOA)Net cashOther non-operating assets – netConsolidated balance sheet (IFRS basis)Total net assets Total assetsTotal liabilitiesTotal net assets424.1410.9834.9431.8(26.2)1,240.51,584.9(344.4)1,240.5 370.1402.4772.6472.0(56.5)1,188.01,538.7(350.7)1,188.054.08.562.3(40.2)30.352.546.26.352.5 Net operating assets (NOA) at March 31, 2022 were ¥834.9 billion, an increase of ¥62.3 billion since the end ofthe previous fiscal year. Of NOA, net working capital was ¥424.1 billion (an increase of ¥54.0 billion since the endof the previous fiscal year), due mainly to an increase in accounts receivable as a result of a settlement agreementbetween Chugai and Alexion Pharmaceuticals, Inc., in spite of a decrease in trade accounts reveivable. Long-termnet operating assets increased by ¥8.5 billion to ¥410.9 billion since the end of the previous fiscal year, mainly dueto the investments in the Chugai Life Science Park Yokohama and the manufacturing building forbiopharmaceuticals (UK4) in the Ukima Site. As indicated in “Cash flows” on the next page, net cash, including marketable securities and interest-bearing debt,decreased by ¥40.2 billion since the end of the previous fiscal year to ¥431.8 billion. Other non-operating assets –net increased by ¥30.3 billion since the end of the previous fiscal year to ¥(26.2) billion due mainly to a decreasein current income tax liabilities. As a consequence, total net assets were ¥1,240.5 billion (an increase of ¥52.5 billion since the end of the previousfiscal year). Note: Net operating assets (NOA) and Net assetsThe consolidated balance sheet has been prepared in accordance with International Accounting Standards (IAS)No. 1, “Presentation of Financial Statements.” On the other hand, Net operating assets (NOA) and Net assets are areconfiguration of the consolidated balance sheet as internal indicators and are identical to the indicators disclosedby Roche. Furthermore, no items from Net operating assets (NOA) and Net assets have been excluded, as the Coreresults concept only applies to the income statement. For further details, please refer to the Supplementary Materials on page 8, entitled “Financial position.” Note: Net operating assets (NOA)Net operating assets allow for an assessment of the Group’s operating performance of the business independentlyfrom financing and tax activities. Net operating assets are calculated as net working capital, long-term netoperating assets that includes property, plant and equipment, intangible assets etc. minus provisions. – 5 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022)First three months ofFY 2022.12(Jan. 1, 2022–Mar. 31, 2022)First three months ofFY 2021.12(Jan. 1, 2021–Mar. 31, 2021)% changeCash flows in billions of yen Free cash flowsOperating profit – IFRS basisOperating free cash flowsFree cash flowsNet change in net cash Operating profit, net of operating cash adjustmentsConsolidated statement of cash flows (IFRS basis)Cash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesNet change in cash and cash equivalentsCash and cash equivalents at March 31 187.0197.9126.233.9(40.2)72.5(34.0)(76.9)(37.3)230.5 64.072.278.312.4(35.2)46.5(46.9)(51.1)(50.3)162.0+192.2+174.1+61.2+173.4+14.2+55.9(27.5)+50.5(25.8)+42.3 Operating profit, net of operating cash adjustments, amounted to ¥197.9 billion (an increase of 174.1% year onyear), which was calculated by adjusting for depreciation and other items that are included in operating profit butare not accompanied by cash inflows or outflows and all inflows and outflows related to NOA that are notaccompanied by profit and loss. Operating free cash flows for the three months under review was a net inflow of ¥126.2 billion (an increase of61.2% year on year) mainly due to an increase in operating profit, despite expenditures, etc. of ¥34.1 billion for thepurchase of property, plant and equipment as well as an increase in in net working capital, etc. of ¥33.2 billion.Factors accounting for the increase in net working capital, etc. are as indicated in “Assets, liabilities and netassets” on the previous page. Free cash flows were a net cash inflow of ¥33.9 billion (an increase of 173.4% year on year) due mainly to incometaxes paid of ¥85.5 billion. The net change in net cash calculated by subtracting dividends paid of ¥75.2 billion, etc. from free cash flows wasa decrease of ¥40.2 billion. The net change in cash and cash equivalents, excluding changes in marketable securities and interest-bearing debt,was a net cash outflow of ¥37.3 billion. The cash and cash equivalents balance at the end of this period amountedto ¥230.5 billion. Note: Free cash flows (FCF)The consolidated statement of cash flows has been prepared in accordance with International Accounting Standard(IAS) No. 7, “Statement of Cash Flows.” FCF is a reconfiguration of the consolidated statement of cash flows asinternal indicators and is identical to the indicators disclosed by Roche. Furthermore, no items from FCF havebeen excluded, as the Core results concept only applies to the income statement. For further details, please refer to the Supplementary Materials on page 9, entitled “Cash flows.” (3) Consolidated forecasts and other forward-looking statementsChugai has not made any changes in its forecast of consolidated results for the fiscal year ending December 31,2022 since the announcement regarding the forecast issued on February 3, 2022. Note: In “1. Qualitative Information,” amounts less than ¥0.1 billion have been rounded to the nearest ¥0.1 billion. Figures forchanges in amounts and percentages have been calculated using data denominated in ¥0.1 billion units.- 6 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022)2. Interim Condensed Consolidated Financial Statements and Major Notes(1) Interim condensed consolidated income statement and interim condensed consolidated statement ofcomprehensive income1) Interim condensed consolidated income statement in millions of yenFirst three months ended March 3120222021 Royalties and other operating incomeRevenuesSalesOther revenueCost of salesGross profitMarketing and distributionResearch and developmentGeneral and administrationOperating profitFinancing costsOther financial income (expense)Other expenseProfit before taxes Income taxesNet incomeAttributable to:Chugai shareholdersEarnings per shareBasic (yen)Diluted (yen) 360,554 242,716 25,924 91,915 (114,424) 246,130 (16,790) (33,866) (8,467) 187,007 (14) 1,614 (2,401) 186,206 (54,431) 131,775 168,817130,26538,553－(55,338)113,480(15,874)(29,727)(3,912)63,967(12)285－64,240(16,830)47,411 131,775 47,41180.14 80.09 28.8428.82- 7 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022)2) Interim condensed consolidated statement of comprehensive income in millions of yen Net income recognized in income statementOther comprehensive incomeFinancial assets measured at fair value through OCIItems that will never be reclassified to the income statementFinancial assets measured at fair value through OCICash flow hedgesCurrency translation of foreign operationsItems that are or may be reclassified to the income statementOther comprehensive income, net of taxTotal comprehensive incomeAttributable to:Chugai shareholdersFirst three months ended March 3120222021131,775 47,411 (5) (5) (4) (6,889) 2,945 (3,948) (3,953) 127,822 5 (107)(107)2,6751,7044,3844,27751,688127,822 51,688- 8 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022)(2) Interim condensed consolidated balance sheet in millions of yen March 31, 2022 December 31, 2021AssetsNon-current assets:Property, plant and equipmentRight-of-use assetsIntangible assetsFinancial non-current assetsDeferred tax assetsDefined benefit plan assetsOther non-current assetsTotal non-current assets Current assets:InventoriesAccounts receivableCurrent income tax assetsMarketable securitiesCash and cash equivalentsOther current assetsTotal current assetsTotal assets LiabilitiesNon-current liabilities:Deferred tax liabilitiesDefined benefit plan liabilitiesLong-term provisionsOther non-current liabilitiesTotal non-current liabilities Current liabilities:Current income tax liabilitiesShort-term provisionsAccounts payableOther current liabilitiesTotal current liabilitiesTotal liabilitiesTotal net assets Equity: Capital and reserves attributable to Chugai shareholdersTotal equity Total liabilities and equity 348,368 12,763 24,897 2,385 64,194 993 39,700 493,300 225,480 390,567 731 201,348 230,474 43,049 1,091,648 1,584,948 (6,334) (2,916) (4,584) (10,088) (23,922) (61,179) (2,057) (153,074) (104,205) (320,515) (344,437) 1,240,510 1,240,510 1,240,510 1,584,948 338,84113,26621,9742,39356,2871,32740,944475,033 208,838355,081928204,217267,75326,8441,063,661 1,538,694 (7,614)(2,945)(2,101)(10,595)(23,255) (86,312)(2,695)(152,266)(86,149)(327,422) (350,677) 1,188,017 1,188,0171,188,017 1,538,694- 9 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022) (3) Interim condensed consolidated statement of cash flows in millions of yen First three months ended March 3120222021Cash flows from operating activitiesCash generated from operations(Increase) decrease in working capitalPayments made for defined benefit plansUtilization of provisionsOther operating cash flowsCash flows from operating activities, before income taxes paidIncome taxes paidTotal cash flows from operating activitiesCash flows from investing activitiesPurchase of property, plant and equipmentPurchase of intangible assetsDisposal of property, plant and equipmentInterest and dividends receivedPurchases of marketable securitiesSales of marketable securitiesPurchases of investment securitiesSales of investment securitiesTotal cash flows from investing activitiesCash flows from financing activitiesInterest paidLease liabilities paidDividends paid to Chugai shareholdersExercise of equity compensation plans(Increase) decrease in own equity instrumentsTotal cash flows from financing activities Net effect of currency translation on cash and cash equivalentsIncrease (decrease) in cash and cash equivalentsCash and cash equivalents at January 1Cash and cash equivalents at March 31 199,662 (33,158) (760) (664) (7,055) 158,025 (85,484) 72,541 (34,119) (2,615) (54) 74 (120,000) 122,768 (36) 1 (33,982) (14) (1,840) (75,160) 147 (1) 1,031 (37,279) 267,753 230,474 73,51640,168(831)(289)(2,704)109,861(63,320)46,541(28,948)(2,945)2036(110,000)95,000(59)－(46,896)(12)(2,220)(49,049)161(4)1,196(50,284)212,333162,049 (76,869) (51,124)- 10 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022) (4) Interim condensed consolidated statement of changes in equity in millions of yen For the first three months ended March 31, 2021 (Jan. 1, 2021–Mar. 31, 2021)At January 1, 2021Net incomeFinancial assets measured at fair value throughOCICash flow hedgesCurrency translation of foreign operationsTotal comprehensive income DividendsEquity compensation plansOwn equity instrumentsAt March 31, 2021 Share capital73,202 － Attributable to Chugai shareholdersRetainedCapital earningssurplus67,586 － 849,093 47,411 Otherreserves(9,879) － Subtotal980,003 47,411 Total equity980,00347,411－ － － － － － － 73,202 － － － － － (19) 253 67,820 － (101) (101) (101)－ － 47,411 (49,316) － － 847,188 2,675 1,704 4,277 － － － (5,601) 2,675 1,704 51,688 (49,316) (19) 253 982,608 2,6751,70451,688 (49,316)(19)253982,608 For the first three months ended March 31, 2022 (Jan. 1, 2022–Mar. 31, 2022) At January 1, 2022Net incomeFinancial assets measured at fair value throughOCICash flow hedgesCurrency translation of foreign operationsTotal comprehensive income DividendsEquity compensation plansOwn equity instrumentsTransfer from other reserves to retained earningsAt March 31, 2022 Share capital73,202 － Attributable to Chugai shareholdersRetainedCapital earningssurplusOtherreserves Subtotal Total equity68,223 1,054,050 131,775 － (7,457) 1,188,017 1,188,017131,775 131,775－ － － － － － － － － 73,202 － － (9) (9) (9)－ － － － (134) 444 － － － 131,775 (75,639) － － 0 68,533 1,110,186 (6,889) 2,945 (3,953) － － － (0) (6,889)2,945127,822 (75,639)(134)444－(11,411) 1,240,510 1,240,510(6,889) 2,945 127,822 (75,639) (134) 444 － – 11 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022) (5) Notes regarding the going concern assumptionNone (6) Notes regarding the interim condensed consolidated financial statementsGeneral accounting principles and significant accounting policies(a) Basis of preparation of the consolidated financial statementsThese financial statements are the interim condensed consolidated financial statements (“Interim FinancialStatements”) of Chugai, a company registered in Japan, and its subsidiaries (“the Group”). The common stockof Chugai is publicly traded and listed on the Tokyo Stock Exchange under the stock code “TSE: 4519.” TheInterim Financial Statements were approved by the Board of Directors on April 25, 2022. Roche Holding Ltd. is a public company registered in Switzerland and the parent company of the Roche Group,which discloses its results in accordance with IFRS. The shareholding percentage of Roche Holding Ltd. inChugai is 59.89% (61.15% of the total number of shares issued excluding treasury stock). The Group becameprincipal members of the Roche Group after entering into a strategic alliance in October 2002. The Group meets all of the requirements for a “Specified Company under Designated International FinancialReporting Standards” as stipulated under Article 1-2 of the “Ordinance on Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements” (Japanese Cabinet Ordinance No. 64,2007). Hence, in accordance with Article 93 of the same Ordinance, the Interim Financial Statements have beenprepared in accordance with International Accounting Standard (IAS) No. 34 “Interim Financial Reporting.” The Interim Financial Statements should be used with the consolidated financial statements for the year endedDecember 31, 2021 as they do not include all the information as required for the consolidated financialstatements for the full fiscal year. The Interim Financial Statements are presented in Japanese yen, which is Chugai’s functional currency andamounts are rounded to the nearest ¥1 million. They have been prepared using the historical cost conventionexcept for items that are required to be accounted for at fair value. (b) Key accounting judgments, estimates and assumptionsThe preparation of the Interim Financial Statements requires management to make judgments, estimates, andassumptions that affect the reported amounts of revenues, expenses, assets, liabilities, and contingent amounts.Actual outcomes could differ from those management estimates. The estimates and underlying assumptions arereviewed on an on-going basis and are based on historical experience and various other factors. Revisions toestimates are recognized in the period in which the estimate is revised. The information for judgment, estimates, and assumptions that have a material impact on the amountrecognized in the Interim Financial Statements of the Group is principally the same for the prior fiscal year. (c) Significant accounting policiesThe Group applies the same significant accounting policies that were used for the Consolidated FinancialStatements in the previous fiscal year to the Interim Financial Statements. – 12 -Chugai Pharmaceutical Co., Ltd. (4519) CONSOLIDATED FINANCIAL STATEMENTS (1st quarter of FY 2022)