アステラス製薬（4503） – Financial Results (FY2021)

Contact: Corporate Advocacy & Relations, Astellas Pharma Inc. TEL +81-3-3244-3201 Financial Results of Astellas for Fiscal Year 2021 Japan, April 27, 2022 – Astellas Pharma Inc. (TSE: 4503, President and CEO: Kenji Yasukawa, “the Company”) today announced the financial results for fiscal year 2021 (FY2021) ended March 31, 2022. Consolidated financial results for FY2021 (April 1, 2021 – March 31, 2022) (core basis) FY2020 FY2021 Revenue 1,249,528 1,296,163 Core operating profit 251,375 244,744 Core profit for the year 209,906 190,584 April 27, 2022 (Millions of yen) Change (%) +46,635(+3.7%)-6,631(-2.6%)-19,322(-9.2%)Cautionary Notes In this material, statements made with respect to current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Astellas. These statements are based on management’s current assumptions and beliefs in light of the information currently available to it and involve known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: (i) changes in general economic conditions and in laws and regulations, relating to pharmaceutical markets, (ii) currency exchange rate fluctuations, (iii) delays in new product launches, (iv) the inability of Astellas to market existing and new products effectively, (v) the inability of Astellas to continue to effectively research and develop products accepted by customers in highly competitive markets, and (vi) infringements of Astellas’ intellectual property rights by third parties.Information about pharmaceutical products (including products currently in development)which is included in this material is not intended to constitute an advertisement or medicaladvice.11. Overview of business performance and others(1) Overview of business performance for FY20211) Overview of consolidated financial results for FY2021 Consolidated financial results (core basis) in FY2021 are shown in the table below. While revenue increased, core operating profit and core profit for the year decreased. Consolidated financial results (core basis) FY2020 FY2021 (Millions of yen) Change (%) Revenue 1,249,528 1,296,163 Cost of sales 246,063 253,009 Selling, general and administrative expenses 504,316 548,840 R&D expenses 224,489 246,010 Amortisation of intangible assets Gain on divestiture of intangible assets* Share of profit (loss) of investments accounted for using equity method 23,763 28,283 – 478 24,234 489 Core operating profit 251,375 244,744 Core profit for the year 209,906 190,584 Basic core earnings per share (yen) 113.03 103.03 +46,635(+3.7%)+6,946(+2.8%)+44,523(+8.8%)+21,521(+9.6%)+4,520(+19.0%) +24,234( – )+11(+2.2%) -6,631(-2.6%) -19,322(-9.2%)-9.99(-8.8%) * Established a new account, which includes gain on sale of rights of in-market products orpipeline assets, in the third quarter of FY2021(Note) The Company discloses financial results on a core basis as an indicator of its recurring profitability. Certain items reported in financial results on a full basis that are deemed to be non-recurring items by the Company are excluded as non-core items from these financial results on a core basis. These adjusted items include impairment losses, gain/loss on sales of property, plant and equipment, restructuring costs, loss on disaster, a large amount of losses on compensation or settlement of litigations and other legal disputes, and other items that are deemed to be excluded based on the Company’s judgment. A reconciliation table between results on a full basis and results on a core basis is provided in the “Supplementary Documents for FY2021 Financial Results.” 2Revenue – Main products XTANDI for the treatment of prostate cancer, XOSPATA for the treatment of acute myeloid leukemia, PADCEV for the treatment of urothelial cancer and EVRENZO for the treatment of renal anemia showed steady growth. In addition, the sales growth of Betanis / Myrbetriq / BETMIGA for the treatment of overactive bladder (“OAB”) and EVENITY for the treatment of osteoporosis contributed to revenue growth as well. – Moreover, another factor for the increase in sales in FY2021 was the sales of pharmacologic stress agent Lexiscan returning to pre-pandemic levels which decreased mainly in the first quarter of the previous fiscal year by the impact of the spread of COVID-19. – The sales growth of the products above offset the sales decrease mainly due to the termination of sales agreements for Celecox for the treatment of inflammation and pain and Lipitor for the treatment of hypercholesterolemia, and the divestiture of Eligard for the treatment of prostate cancer. As a result of the above, revenue in FY2021 increased by 3.7% compared to those in the previous fiscal year (“year-on-year”) to ¥1,296.2 billion. Core operating profit / Core profit for the year – Gross profit increased by 4.0% year-on-year to ¥1,043.2 billion. The cost-to-revenue ratio fell by 0.2 percentage points year-on-year to 19.5%, mainly due to changes in product mix, despite the foreign exchange rate impact from the elimination of unrealized gains in intra-group transactions. – Selling, general and administrative expenses increased by 8.8% year-on-year to ¥548.8 billion. The total amount increased mainly due to the impact of the foreign exchange rates (increase of ¥25.0 billion year-on-year), the increase of co-promotion fees associated with the growth of sales of XTANDI in the United States (increase of ¥11.3 billion year-on-year), investment in Digital Transformation (increase of approximately ¥8.0 billion year-on-year), and the increase in sales promotion expenses for new product launch readiness (increase of approximately ¥5.0 billion year-on-year), despite a decrease in expenses due to the global optimization of personnel aligned with transformation of product portfolio (decrease of approximately ¥9.0 billion year-on-year). Selling, general and administrative expenses, excluding co-promotion fees of XTANDI in the United States, increased by 6.6% year-on-year to ¥409.5 billion. – Research and development (R&D) expenses increased by 9.6% year-on-year to ¥246.0 billion. The total amount increased mainly due to the impact of the foreign exchange rates and also increases in development expenses for zolbetuximab, an anti-Claudin 18.2 monoclonal antibody and R&D investment for Rx+ business (related to iota). – Amortisation of intangible assets increased by 19.0% year-on-year to ¥28.3 billion. 3-Gain on divestiture of intangible assets was ¥24.2 billion, including transfer of fiveproducts to Cheplapharm which were sold in Europe and other regions (¥12.3billion), transfer of a pipeline asset (¥9.2 billion) and transfer of Bendamustine(¥2.0 billion) in the third quarter of FY2021.As a result of the above, core operating profit decreased by 2.6% year-on-year to ¥244.7 billion, and core profit for the year decreased by 9.2% year-on-year to ¥190.6 billion. Impact of exchange rate on financial results The exchange rates for the yen in FY2021 are shown in the table below. The resulting impacts were a ¥59.6 billion increase in revenue and an ¥18.5 billion increase in core operating profit compared with if the exchange rates of FY2020 were applied. Average rate FY2020 FY2021 Change US$/¥ €/¥ 106 124 112 131 ¥6(Weakening of yen) ¥7(Weakening of yen) Change from beginning to end of period As of March 31, 2021 As of March 31, 2022 US$/¥ €/¥ (Weakening of yen) (Weakening of yen) ¥2¥10¥11¥5(Weakening of yen) (Weakening of yen) 4 Consolidated financial results on a full basis in FY2021 are shown in the table below. Revenue, operating profit and profit for the year increased across the board. The full basis financial results include “Other income,” “Other expenses,” which are excluded from the core basis financial results. In FY2021, “Other income” was ¥15.3 billion (¥7.6 billion in the previous fiscal year) and “Other expenses” was ¥104.3 billion (¥123.0 billion in the previous fiscal year). As “Other expenses,” the Company recorded impairment loss of intangible assets (¥31.2 billion) in relation to a revision of the development plan for the gene therapy AT132, impairment loss of intangible assets (¥11.3 billion) in relation to the termination of DNA vaccine ASP2390 and impairment loss of goodwill (¥5.2 billion) in relation to the termination of GITR agonistic antibody ASP1951 in the fourth quarter of FY2021. Consolidated financial results (full basis) FY2020 FY2021 Revenue 1,249,528 1,296,163 Operating profit 136,051 155,686 Profit before tax 145,324 156,886 Profit for the year 120,589 124,086 Basic earnings per share (yen) Comprehensive income 64.93 67.08 181,499 208,117 (Millions of yen) Change (%) +46,635 (+3.7%) +19,635 (+14.4%) +11,563 (+8.0%) +3,497 (+2.9%) +2.15 (+3.3%) +26,618 (+14.7%) 5 (Billions of yen) FY2020 FY2021 Change XTANDI XOSPATA PADCEV EVRENZO BETMIGA Prograf* Betanis / Myrbetriq / 458.4 534.3 +16.6% 23.8 12.8 1.1 163.6 182.7 34.1 21.7 2.6 172.3 185.4 +42.9% +69.5% +131.5% +5.3% +1.5% * Prograf: Includes Advagraf, Graceptor, and ASTAGRAF XL. – Sales grew in all regions in which XTANDI is sold as a result of working to further strengthen market access and further increase penetration of XTANDI amongst urologists in addition to expanding prescriptions in the market for early stage prostate cancer by utilizing robust data based on clinical trials accumulated after launch. – Sales grew substantially in the United States compared to the previous fiscal year, and in Europe, additional indication of “metastatic hormone-sensitive prostate cancer (M1 HSPC)” (approved in April 2021) contributed to sales growth. In addition, sales continued to show strong growth in Japan, China and International Markets. – Sales expanded in all regions in which XOSPATA is sold as a result of penetration of XOSPATA amongst hematologists/oncologists, and the establishment of its position as market leader by increasing product awareness and the rate of testing for FMS-like tyrosine kinase 3 (FLT3) mutations is carried out. – In addition to sales growing in the United States and Europe compared to the previous fiscal year, sales in China also contributed, where the product was launched in April 2021. Furthermore, the number of countries that approved XOSPATA in International Markets increased, and in Japan, it captured a high market share with its current indication. 6 -In the United States, revenue from co-promotion grew as expected, as a result of theestablishment of its position as a preferred treatment option for patients with existingindications, and the contribution of the additional indication “locally advanced ormetastatic urothelial cancer patients who are ineligible for cisplatin-containingchemotherapy and have previously received one or more prior lines of therapy”(approved in July 2021).-In Japan, where the product was launched in November 2021, the uptake was higherthan expected. In addition, in April 2022, approval in Europe was obtained for PADCEVas monotherapy for the treatment of patients with locally advanced or metastaticurothelial cancer who have previously received treatment with a platinum-containingchemotherapy and a PD-1 or PD-L1 inhibitors. Although sales expanded in Japan mainly due to the initiative to expand the marketshare, sales were lower than expected due to the strong competition in the market.In Europe, where EVRENZO was launched in September 2021, sales were lower thanexpected, as sales promotion activities at the time of launch were restricted by theimpact of the spread of COVID-19 and because penetration of its differentiation fromthe existing standard treatment of care was below expectation. Sales expanded globally, mainly in Europe and Japan. and Japan.Global sales were in line with expectation, although there were regional differences,such as sales growth in Europe and China, while sales decreased in the United States—-7 Revenue by region is shown in the table below. Revenue in United States, Established Markets and Greater China increased, while in Japan and International Markets decreased. FY2020 FY2021 Change (Billions of yen) 279.1 473.2 293.2 59.3 111.1 Japan United States 258.8 -7.3%537.5 +13.6%Established Markets*1 315.2 +7.5%Greater China*2 66.3 +11.8%International Markets*3 110.1 -0.9%*1 Established Markets: Europe, Canada, Australia.*2 Greater China: China, Hong Kong, Taiwan.*3 International Markets: Russia, Latin America, Middle East, Africa, South East Asia, South Asia,Korea, Export sales, etc. 82) Efforts Against the Spread of the Coronavirus Disease (COVID-19) With the continuing spread of COVID-19, we are, as part of our mission as a pharmaceutical company, taking various actions and measures to contribute to securing the safety of patients and alleviating strain on healthcare resources. We have, thus far, conducted initiatives in areas that include the stable supply of products, contribution to the R&D of drugs, and assistance to regions where infection is spreading. The Company’s main efforts are published on our website (https://www.astellas.com/en/covid-19). Please refer to the website for details. 9(2) Financial position 1) Assets, equity and liabilities An overview of the consolidated statement of financial position as of March 31, 2022 and the main changes from the end of the previous fiscal year are shown below. Total assets saw an increase of ¥58.8 billion compared to the end of the previous fiscal Assets year to ¥2,332.4 billion. As of March 31, 2022: ¥1,409.0 billion (an increase of ¥8.0 billion) – Property, plant and equipment increased by ¥4.4 billion compared to the end of the previous fiscal year to ¥269.0 billion. – Goodwill increased by ¥19.0 billion compared to the end of the previous fiscal year to ¥303.0 billion, and intangible assets decreased by ¥28.0 billion compared to the end of the previous fiscal year to ¥623.4 billion. – In the fourth quarter of FY2021, intangible assets decreased due to the recording of impairment losses of intangible assets in relation to a revision of the development plan for the gene therapy AT132 as well as impairment loss of intangible assets in relation to the termination of DNA vaccine ASP2390. As of March 31, 2022: ¥923.4 billion (an increase of ¥50.8 billion) – Cash and cash equivalents decreased by ¥10.1 billion compared to the end of the previous fiscal year to ¥316.0 billion. Total equity as of March 31, 2022 saw an increase of ¥74.2 billion compared to the end of the previous fiscal year to ¥1,460.3 billion, making the ratio of equity attributable to owners of the parent to total assets 62.6%. – While profit for the year stood at ¥124.1 billion, the Company paid ¥85.2 billion of dividends of surplus and executed a ¥50.7 billion acquisition of its treasury shares. – The Company canceled a total of 25.94 million treasury shares valued at ¥51.4 billion in March 2022. Total liabilities decreased by ¥15.4 billion compared to the end of the previous fiscal year to Equity Liabilities ¥872.1 billion. billion) As of March 31, 2022: ¥184.7 billion (a decrease of ¥110.5 – Other financial liabilities decreased by ¥103.1 billion compared to the end of the previous fiscal year to ¥95.9 billion. 10- This decrease was mainly due to the repayment of long-term borrowings of ¥30.0 billion and transfer of ¥50.0 billion to current portion of long-term borrowings in the fourth quarter of FY2021. As of March 31, 2022: ¥687.4 billion (an increase of ¥95.0 billion) – As of March 31, 2022, the balance of bonds and borrowings amounted to ¥140.0 billion. – Other financial liabilities amounted to ¥185.0 billion (an increase of ¥36.8 billion) due to the transfer from long-term borrowing stated above, and other current liabilities amounted to ¥322.8 billion (an increase of ¥33.9 billion). 112) Cash flowto ¥257.4 billion. Cash flows from operating activities Net cash flows from operating activities in FY2021 decreased by ¥49.4 billion year-on-year -Income tax paid increased by ¥24.2 billion year-on-year to ¥42.1 billion.Cash flows from investing activities Net cash flows used in investing activities in FY2021 was ¥62.4 billion, a decrease in outflow of ¥19.5 billion year-on-year. -Proceeds from sales of intangible assets amounted to ¥24.3 billion.Net cash flows used in financing activities in FY2021 was ¥216.3 billion, a decrease in Cash flows from financing activities outflow of ¥13.2 billion year-on-year. –Repayments of long-term borrowings amounted to ¥30.0 billion, and the balance ofbonds and short-term borrowings decreased by ¥30.0 billion.Dividends paid increased by ¥9.1 billion year-on-year to ¥85.2 billion. Furthermore,there was an acquisition of treasury shares of ¥50.7 billion (an increase in outflowof ¥41.6 billion) year-on-year.As a result, cash and cash equivalents totaled ¥316.0 billion as of March 31, 2022, a decrease of ¥10.1 billion compared to the end of the previous fiscal year. 12(3) Consolidated business forecasts for FY2022 and other forward-looking statements basis. The Company’s business forecasts for FY2022 are presented on a core basis and full The consolidated full-year business forecasts (core basis) are shown below. Consolidated full–year business forecasts (core basis) FY2021 Results FY2022 Forecasts Change (%) (Millions of yen) Revenue 1,296,163 1,443,000 Selling, general and administrative expenses 548,840 598,000 R&D expenses 246,010 254,000 Core operating profit 244,744 290,000 Core profit for the year 190,584 223,000 Basic core earnings per share (yen) (+18.5%) (Note) The forecast of the basic core earnings per share is calculated based on the number of issued shares (excluding treasury shares) at the end of FY2021. 103.03 122.05 Expected exchange rate for FY2022 (Forecast) FY2021 (Result) ¥120/US$ ¥112/US$ ¥135/€ ¥131/€ Revenue, core operating profit and core profit for the year are anticipated to increase across the board. The fluctuations in the exchange rate are anticipated to cause a ¥120.8 billion increase in revenue and a ¥25.3 billion increase in core operating profit compared with if the exchange rates of FY2021 were applied, as the exchange rate for FY2022 is anticipated to weaken against both the U.S. dollar and the euro compared with FY2021 results. +146,837 (+11.3%) +49,160 (+9.0%) +7,990 (+3.2%) +45,256 (+18.5%) +32,416 (+17.0%) +19.02 13Revenue The revenue forecast is ¥1,443.0 billion (up 11.3% year on year). – Revenue is anticipated to increase since the Company expects the main products XTANDI, and the Strategic products XOSPATA, PADCEV and EVRENZO to continue to grow significantly. Core operating profit/ Core profit for the year – Cost-of-goods ratio to revenue will be lowered mainly due to changes in product mix. – Regarding selling, general and administrative expenses, the Company will pursue cost efficiency by thoroughly reviewing costs that do not contribute to our competitiveness or the increase of our VALUE. On the other hand, due to the allocation of investment to prepare for the launch of fezolinetant, a selective neurokinin-3 receptor antagonist, and zolbetuximab, an anti-Claudin 18.2 monoclonal antibody, as well as increases in XTANDI co-promotion fees in the United States, it is forecasted at ¥598.0 billion (up 9.0% year on year). The Company projects R&D expenses of ¥254.0 billion (up 3.2% year on year) reflecting enhanced investment into our Primary Focus. As a result of the above, the Company projects core operating profit of ¥290.0 billion (up 18.5% year on year). Core profit for the year is forecasted at ¥223.0 billion (up 17.0% year on year) and basic core earnings per share is forecasted at ¥122.05 (up 18.5 % year on year). XTANDI XOSPATA PADCEV EVRENZO FY2021 Results FY2022 Forecasts (Billions of yen) Change 534.3 642.5 +20.3% 34.1 21.7 2.6 46.2 36.5 9.9 +35.5% +68.0% +281.2% – 14The consolidated full-year business forecasts (full basis) are shown below. Consolidated full-year business forecasts (full basis) FY2021 Results FY2022 Forecasts Change (%) (Millions of yen) Revenue 1,296,163 1,443,000 Operating profit 155,686 269,000 Profit before tax 156,886 267,000 Profit for the year 124,086 208,000 +146,837 (+11.3%) +113,314 (+72.8%) +110,114 (+70.2%) +83,914 (+67.6%) +46.76 Basic earnings per share (yen) (Note) The forecast of the basic earnings per share is calculated based on the number of issued (+69.7%) 67.08 113.84 shares (excluding treasury shares) at the end of FY2021. Expected exchange rate for FY2022 (Forecast) FY2021 (Result) ¥120/US$ ¥112/US$ ¥135/€ ¥131/€ In FY2021, the Company recorded “Other expenses” that is excluded from its core basis financial results, with the result that operating profit is ¥89.1 billion lower than core operating profit. In FY2022, operating profit, profit before tax, and profit for the year are anticipated to increase across the board. This includes the impairment loss for intangible assets resulting from the termination of development of gene therapy programs AT702, AT751, and AT753 announced in April 2022. 15(4) Capital allocation policy and dividends for FY2021 and FY2022The Company strives to sustainably increase enterprise value while proactively making returns to shareholders. While putting priority on business investment to assure future growth, the Company strives to increase dividend payments stably and continuously, based on medium- to long-term profit growth on a consolidated basis. In addition, the Company will flexibly acquire its own shares whenever necessary to further increase capital efficiency and earnings per share. share) to shareholders. The annual dividend for FY2021 is ¥50 per share (including a year-end dividend of ¥25 per The Company anticipates that the annual dividend in FY2022 will be ¥60 per share (composed of interim dividend of ¥30 per share and a year-end dividend of ¥30 per share). 162. Consolidated Financial Statements and Notes to Consolidated Financial Statements(1) Consolidated Statement of IncomeFiscal year ended 31 March 2021 Fiscal year ended 31 March 2022 (Millions of yen) Revenue Cost of sales Gross profit Selling, general and administrative expenses Research and development expenses Amortisation of intangible assets Gain on divestiture of intangible assets Share of profit (loss) of investments accounted for using equity method Other income Other expenses Operating profit Finance income Finance expenses Profit before tax Income tax expense Profit Profit attributable to: Owners of the parent Earnings per share: Basic (Yen) Diluted (Yen) 1,249,528 (246,063) 1,003,465 (504,316) (224,489) (23,763) －478 7,639 (122,963) 136,051 11,608 (2,335) 145,324 (24,734) 120,589 1,296,163 (253,009) 1,043,154 (548,840) (246,010) (28,283) 24,234 489 15,256 (104,314) 155,686 6,149 (4,949) 156,886 (32,800) 124,086 120,589 124,086 64.93 64.90 67.08 67.05 17(2) Consolidated Statement of Comprehensive Income(Millions of yen) Fiscal year ended 31 March 2021 Fiscal year ended 31 March 2022 Profit 120,589 124,086 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income Remeasurements of defined benefit plans Subtotal Subtotal Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 5,374 1,788 7,162 53,748 53,748 (5,078) 2,512 (2,566) 86,597 86,597 Other comprehensive income 60,910 84,031 Total comprehensive income 181,499 208,117 Total comprehensive income attributable to: Owners of the parent 181,499 208,117 18(3) Consolidated Statement of Financial Position (Millions of yen) As of 31 March 2021 As of 31 March 2022 Assets Non-current assets Property, plant and equipment Goodwill Intangible assets Trade and other receivables Investments accounted for using equity method Deferred tax assets Other financial assets Other non-current assets Total non-current assets Current assets Inventories Trade and other receivables Income tax receivable Other financial assets Other current assets Cash and cash equivalents Total current assets Total assets 264,623 284,011 651,427 33,924 7,117 54,176 95,850 9,913 164,080 343,178 13,984 5,560 19,658 326,128 872,588 269,044 303,030 623,431 29,796 10,035 72,331 91,844 9,531 153,072 382,462 21,539 21,297 28,997 315,986 923,354 1,401,040 1,409,041 2,273,628 2,332,395 19Equity and liabilities Equity Share capital Capital surplus Treasury shares Retained earnings Other components of equity Total equity attributable to owners of the parent Total equity Liabilities Non-current liabilities Trade and other payables Deferred tax liabilities Retirement benefit liabilities Provisions Other financial liabilities Other non-current liabilities Total non-current liabilities Current liabilities Trade and other payables Income tax payable Provisions Other financial liabilities Other current liabilities Total current liabilities Total liabilities Total equity and liabilities As of 31 March 2021 As of 31 March 2022 (Millions of yen) 103,001 177,830 (15,377) 953,289 167,373 1,386,115 1,386,115 400 18,161 38,982 5,796 199,021 32,782 295,141 124,777 8,395 22,187 148,163 288,851 592,372 887,513 103,001 179,467 (13,934) 944,261 247,512 1,460,308 1,460,308 676 5,823 37,226 5,831 95,886 39,234 184,676 130,739 32,388 16,570 184,964 322,751 687,411 872,087 2,273,628 2,332,395 20(4) Consolidated Statement of Changes in Equity Equity attributable to owners of the parent Share capital Capital surplus Treasury shares Retained earnings (Millions of yen) Other components of equity Subscription rights to shares Exchange differences on translation of foreign operations As of 1 April 2020 103,001 177,506 (7,178) 905,851 899 93,277 As of 31 March 2021 103,001 177,830 (15,377) 953,289 745 147,024 324 (8,199) (73,151) (154) Comprehensive income Profit Other comprehensive income Total comprehensive income Transactions with owners Acquisition of treasury shares Disposals of treasury shares Dividends Transfers Share-based payments Total transactions with owners Comprehensive income Profit Other comprehensive income Total comprehensive income Transactions with owners Acquisition of treasury shares Disposals of treasury shares Cancellation of treasury shares Dividends Transfers Share-based payments Total transactions with owners － － － － (444) － 768 － － － － － － － － (9,163) 120,589 － 120,589 － 964 － － － (365) (76,157) － 3,371 － － － 124,086 － 124,086 － (50,717) (391) － － 2,028 － 735 (229) 51,427 － － － (51,427) (85,236) － 3,777 － － － － (154) － － － － － － － (115) － － － － － － － － － － － － － － － － － － － － － － － 53,748 53,748 86,597 86,597 － － － － － － － － － － － － － － － As of 31 March 2022 103,001 179,467 (13,934) 944,261 630 233,621 1,638 1,444 (133,114) (115) 21 As of 1 April 2020 Comprehensive income Profit Other comprehensive income Total comprehensive income Transactions with owners Acquisition of treasury shares Disposals of treasury shares Dividends Transfers owners Share-based payments Total transactions with As of 31 March 2021 Comprehensive income Profit Transactions with owners Acquisition of treasury shares Disposals of treasury shares Cancellation of treasury shares Dividends Transfers owners Share-based payments Total transactions with As of 31 March 2022 Equity attributable to owners of the parent (Millions of yen) Other components of equity Financial assets measured at fair value through other comprehensive income Remeasurements of defined benefit plans (1,583) (1,788) (3,371) (1,788) (3,525) (84,552) (84,552) 167,373 1,386,115 1,386,115 Total Total Total equity 109,989 1,289,168 1,289,168 120,589 120,589 60,910 60,910 60,910 60,910 181,499 181,499 (9,163) (9,163) 1 1 (76,157) (76,157) 768 － 768 － 1,788 1,788 － － － － － － － － 2,512 2,512 － － － － － － － (154) － － － － (115) － － － (50,717) (50,717) 0 － 0 － (85,236) (85,236) 2,028 － 2,028 － (2,512) (3,777) (2,512) (3,893) (133,925) (133,925) － 247,512 1,460,308 1,460,308 15,813 － 5,374 5,374 － － － － (1,583) 19,604 － － － － － － (1,265) (1,265) 13,261 Other comprehensive income Total comprehensive income (5,078) (5,078) 124,086 124,086 84,031 84,031 84,031 84,031 208,117 208,117 22(5) Consolidated Statement of Cash Flows Fiscal year ended 31 March 2021 Fiscal year ended 31 March 2022 (Millions of yen) Cash flows from operating activities Profit before tax Depreciation and amortisation Impairment losses (reversal of impairment losses) Finance income and expenses (Increase) decrease in inventories (Increase) decrease in trade and other receivables Increase (decrease) in trade and other payables Other Subtotal Income tax paid Net cash flows from operating activities Cash flows from investing activities Purchases of property, plant and equipment Proceeds from sales of property, plant and equipment Purchase of intangible assets Proceeds from sales of intangible assets Payments for acquisition of subsidiaries Interest and dividends received Other Net cash flows provided by (used in) investing activities Cash flows from financing activities Increase (decrease) in bonds and short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Acquisition of treasury shares Dividends paid to owners of the parent Repayments of lease liabilities Other Net cash flows 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 the beginning of the year Cash and cash equivalents at the end of the year 145,324 72,652 100,348 (9,273) (2,318) 22,161 (51,569) 47,389 324,714 (17,870) 306,843 (31,384) 6,831 (46,057) － (14,916) 1,037 2,594 (81,894) (206,000) 80,000 － (9,163) (76,157) (15,891) (2,268) 12,267 7,737 318,391 326,128 156,886 79,684 74,850 (1,200) 24,058 (8,001) (10,101) (16,639) 299,537 (42,093) 257,444 (30,739) 441 (45,709) 24,281 (670) 716 (10,733) (62,413) (30,000) － (30,000) (50,717) (85,236) (17,815) (2,530) 11,125 (10,143) 326,128 315,986 (229,479) (216,298) 23(6) Notes to consolidated financial statementsNotes on going concern assumptionNot applicable. Segment information The main activities of the Group are the research and development, manufacture and sale of pharmaceutical products, and there are no separate operating segments. Therefore, the Group has a single reporting segment, “Pharmaceutical”. Information about products and services Revenue by type of product and service is as follows: Fiscal year ended 31 March 2021 Fiscal year ended 31 March 2022 Betanis/Myrbetriq/BETMIGA XTANDI Prograf Other Total 1,249,528 1,296,163 Information about geographical areas Revenue and non-current assets by geographical areas are as follows: Revenue by geographical areas Fiscal year ended 31 March 2021 Fiscal year ended 31 March 2022 (Note) Revenue by geographical areas is categorised based on the geographical location of each Group Non-current assets (property, plant and equipment, goodwill and intangible assets) by geographical areas As of 31 March 2021 As of 31 March 2022 (Millions of yen) 534,317 185,362 172,293 404,191 (Millions of yen) 268,940 544,103 483,120 1,296,163 (Millions of yen) 410,425 674,761 110,318 1,195,505 458,434 182,650 163,569 444,875 297,230 478,768 473,530 1,249,528 452,144 640,120 107,796 1,200,060 Japan United States Others Total company. Japan United States Others Total 24Information about major customers The following external customer accounts for 10% or more of the consolidated revenue of the Group. Segment Fiscal year ended 31 March 2021 Fiscal year ended 31 March 2022 (Millions of yen) McKesson Group Pharmaceutical 193,182 218,745 Earnings per share The basis of calculation of basic earnings per share and diluted earnings per share is as follows: (Millions of yen, except as otherwise indicated) Fiscal year ended 31 March 2021 Fiscal year ended 31 March 2022 Basis of calculating basic earnings per share Profit attributable to owners of the parent 120,589 124,086 Profit not attributable to ordinary shareholders of the parent －－Profit used to calculate basic earnings per share 120,589 124,086 Weighted average number of ordinary shares (Thousands of shares) 1,857,125 1,849,713 Basis of calculating diluted earnings per share Profit used to calculate basic earnings per share Adjustment Profit used to calculate diluted earnings per share Weighted average number of ordinary shares (Thousands of shares) Increase in the number of ordinary shares due to exercise of subscription rights to shares (Thousands of shares) Weighted average number of diluted ordinary shares (Thousands of shares) Earnings per share (attributable to owners of the parent): 120,589 －120,589 124,086 －124,086 1,857,125 1,849,713 1,068 889 1,858,193 1,850,602 Basic (Yen) Diluted (Yen) 64.93 64.90 67.08 67.05 Significant subsequent events In April 2022, the Group decided to terminate the research and development of AT702, AT751 and AT753, which are in-process research and development. As a result, the Group will recognise an impairment loss for intangible assets of $170 million in other expenses in the next fiscal year. 25