塩野義製薬（4507） – Consolidated Financial Results for Fiscal Year 2021 (IFRS)

RevenueOperating profitProfit before taxProfitProfit attributable to owners of parentComprehensive incomeMillions of yen%Millions of yen%Millions of yen%Millions of yen%Millions of yen%Millions of yen%Year ended March 31, 2022335,13812.8110,312(6.1)126,268(11.7)113,4391.2114,1852.1161,76917.6Year ended March 31, 2021297,177(10.9)117,438(10.1)143,018(9.8)112,061(8.3)111,858(8.5)137,509278.0Basic earnings per shareDiluted earnings per shareReturn on equity attributable to owners of parentRatio of profit before tax to total assetsRatio of operating profit to revenueYenYen%%%Year ended March 31, 2022378.75378.6312.511.732.9Year ended March 31, 2021365.03364.8913.915.339.5Total assetsTotal equityEquity attributable to owners of parentRatio of equity attributable to owners of parent to total assetsEquity attributable to owners of parent per shareMillions of yenMillions of yenMillions of yen%YenAs of March 31, 20221,150,601993,285975,66184.83,236.21As of March 31, 2021998,992864,550846,10884.72,806.67From operating activitiesFrom investing activitiesFrom financing activitiesCash and cash equivalents at end of periodMillions of yenMillions of yenMillions of yenMillions of yenYear ended March 31, 2022102,068(96,204)(36,615)254,420Year ended March 31, 2021109,039(5,261)(43,891)276,173Annual dividends per shareTotal dividends(Annual)Payout ratio(Consolidated)Ratio of dividends to equity attributable to owners of parentEnd of 1st quarterEnd of 2nd quarterEnd of 3rd quarterYear-endAnnualyenyenyenyenyenMillions of yen%%Year ended March 31, 2021－53.00－55.00108.0033,02329.64.1Year ended March 31, 2022－55.00－60.00115.0034,67030.43.8Year ending March 31, 2023(forecast)－60.00－60.00120.0026.6RevenueOperating profitProfit before taxProfit attributable to owners of parentBasic earnings per shareMillions of yen%Millions of yen%Millions of yen%Millions of yen%YenSix months endingSeptember 30, 2022180,00024.157,00033.686,00069.271,50034.6237.16Year ending March 31, 2023400,00019.4120,0008.8168,00033.0136,00019.1451.10　　　　　　　　Consolidated Financial Results for Fiscal Year 2021 (IFRS)May 11, 2022Name of Listed Company: SHIONOGI & CO., LTD. Listed Exchanges: Section I of TokyoCode: 4507 URL: http://www.shionogi.co.jpRepresentative: Isao Teshirogi, President and CEOContact responsibility: Yoshimasa Kyokawa,Vice President,Corporate Communications Department　 Tel.: (06)6202-2161Scheduled date of Annual General Meeting of Shareholders: June 23, 2022Scheduled date of dividend payments: June 24, 2022Scheduled date of annual securities report submission: June 24, 2022Preparation of supplemental material for financial results: YesHolding of presentation for financial results: Yes (for investment analysts) (Note: All amounts are rounded down to the nearest million yen.)1. Consolidated results for the period from April 1, 2021 to March 31, 2022(1) Consolidated operating results (% shows changes from the same period of the previous fiscal year)Reference: Share of profit (loss) of investments accounted for using equity method:Year ended March 31, 2022: (20) million yen, Year ended March 31, 2021: － million yen(2) Consolidated financial position(3) Consolidated cash flows2. Dividends3. Consolidated financial forecast for the year ending March 31, 2023(% shows changes from the same period of the previous fiscal year)Net salesOperating incomeOrdinary incomeNet incomeMillions of yen%Millions of yen%Millions of yen%Millions of yen%Year ended March 31, 2022285,9489.695,96926.0100,89223.590,264180.5Year ended March 31, 2021260,986(11.2)76,192(34.4)81,714(32.6)32,181(63.7)Earnings per shareEarnings per share (diluted)YenYenYear ended March 31, 2022299.41299.31Year ended March 31, 2021105.02104.98Total assetsNet assetsShareholders’ equity ratioNet assets per shareMillions of yenMillions of yen%YenAs of March 31, 2022730,120590,43080.81,957.59As of March 31, 2021617,123536,40586.91,778.50※ Notes(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries involving changes in scope of consolidation): None(2) Changes in accounting policies, changes/restatements of accounting estimatesa) Changes in accounting policies required by IFRS: Noneb) Changes in accounting policies other than a) above: Nonec) Changes in accounting estimates: None(3) Number of shares issued (common stock)a) Number of shares issued (including treasury stock)As of March 31, 2022: 311,586,165 sharesAs of March 31, 2021: 311,586,165 sharesb) Number of treasury stockAs of March 31, 2022: 10,103,385 sharesAs of March 31, 2021: 10,122,444 sharesc) Average number of shares issued during the periodAs of March 31, 2022: 301,478,888 sharesAs of March 31, 2021: 306,441,234 shares(Reference) Non-consolidated financial results (Japanese GAAP)Non-consolidated results for the period from April 1, 2021 to March 31, 2022(1) Non-consolidated operating results (% shows changes from the same period of the previous fiscal year)(2) Non-consolidated financial positionReference: Shareholders’ equity: As of March 31, 2022: 590,179 million yen As of March 31,2021: 536,154 million yen※ This report of financial results is unaudited.※ Explanation Concerning the Appropriate Use of Financial Results Forecasts and Other Special Instructions(Cautionary note concerning forward-looking statements)The forecast of financial results and forward-looking statements contained in this report are based on information currently available to the Company as well as certain assumptions that it judges to be reasonable. Actual results may differ materially due to a variety of factors.For details of the assumptions used in the forecast of financial results and a cautionary note concerning appropriate use, please refer to “1. Overview of Operating Results and Financial Position (4) Outlook ” on page 5 of the accompanying materials.(Method of Obtaining Financial Results Supplementary Materials and Details of Results Briefing Meeting)Financial results supplementary materials are posted via TDnet on the date of disclosure. The Company plans to hold a results briefing meeting for analysts on Thursday, May 12, 2022. Plans are also in place to post audio explanatory details(Transcript) together with financial results explanatory materials distributed to analysts on May 12, 2022 on the Company’s website in a timely manner after the results briefing.SHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 1 -1. Overview of Operating Results and Financial Position··························································2(1) Operating Results for the Fiscal Year Ended March 31, 2022············································2(2) Financial Position for the Fiscal Year Ended March 31, 2022·············································4(3) Cash Flows for the Fiscal Year Ended March 31, 2022·····················································4(4) Outlook···················································································································52. Accounting Standards···································································································63. Consolidated Financial Statement and Notes····································································7(1) Consolidated statement of profit or loss and Consolidated statement of comprehensiveincome···················································································································7(2) Consolidated statement of financial position··································································9(3) Consolidated statement of changes in equity································································11(4) Consolidated statement of cash flows··········································································12(5) Notes·····················································································································14Going concern assumption·····················································································14Segment information·····························································································14Earnings per share·······························································································15Important subsequent events·················································································15CONTENTSSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 2 -Year ended March 31, 2022Year ended March 31, 2021ChangePercentage change (%)Revenue335,138297,17737,96012.8Operating profit110,312117,438(7,126)(6.1)Core operating profit *110,57093,96316,60717.7Profit before tax126,268143,018(16,750)(11.7)Profit attributable to owners of parent114,185111,8582,3262.11. Overview of Operating Results and Financial Position(1) Operating Results for the Fiscal Year Ended March 31, 20221) Revenue and profitFor the year ended March 31, 2022 (April 1, 2021 to March 31, 2022), operating results were as follows.Millions of yen* The Company has established “core operating profit” as a profit indicator to present ordinary profitability. This has been adopted as the Company’s proprietary earnings management indicator. Core operating profit is an adjusted profit in which non-recurring items (impairment losses, gain on sale of property, plant, and equipment, etc.) are deducted from operating profit.Revenue was ¥335.1 billion, a 12.8 percent increased year on year. Domestic sales of prescription drugs were ¥89.1 billion, a decrease of 5.9 percent, as a result of the launch of a generic version of Cymbalta. On the other hand, revenue from overseas subsidiary sales and exports was ¥34.4 billion, a 39.5 percent increase due to growth in sales of cefiderocol in Europe and the United States. Royalty income was ¥181.3 billion, a 25.3 percent increase due to the increase in royalty income from the HIV franchise.Operating profit was ¥110.3 billion, a 6.1 percent decrease, as research and development expenses increased due to aggressive investment in COVID-19-related projects. Core operating profit excluding non-recurring items was ¥110.6 billion, an increase of 17.7 percent.Profit before tax was ¥126.3 billion, an 11.7 percent decrease.Despite the decrease in profit before tax, profit attributable to owners of parent was ¥114.2 billion, a 2.1 percent increase. The increase was the result of a refund received in connection with a favorable decision in Shionogi’s complaint for the rescission of tax reassessment by the Osaka Regional Taxation Bureau.In the fiscal year ended March 31, 2022, Shionogi achieved its financial forecast despite the sharp rise in research and development expenses for COVID-19-related projects. In the fiscal year ending March 31, 2023, Shionogi will address challenges left over from previous years and redouble efforts to build Shionogi into a company with more earning power.■ Domestic sales of prescription drugsDomestic sales of prescription drugs decreased 5.9 percent to ¥89.1 billion as a result of the decrease in sales due to the market entry of a generic version of Cymbalta. The flu season was very mild, like the previous season, but sales of influenza-related products increased ¥2.8 billion to ¥3.1 billion, as Shionogi recorded sales revenue from government stockpiles of Rapiacta. Sales of infectious disease drugs, which include influenza-related products, totaled ¥11.8 billion, a 20.8 percent increase. Sales of Intuniv and Vyvanse were ¥16.4 billion (a 25.4 percent increase) and ¥0.8 billion (a 190.7 percent increase), respectively.During the COVID-19 pandemic, restrictions on visits to healthcare facilities by medical representatives (MRs) continued. To deliver product information to healthcare professionals even in these circumstances, Shionogi improved its ability to communicate in digital environments, and focused on securing meeting opportunities. In addition, Shionogi built a sales IT platform to create an organization in which decisions are made based on data with the aim of increasing productivity per employee.■ Exports/Overseas subsidiary salesRevenue from overseas subsidiary sales and exports increased 39.5 percent to ¥34.4 billion. Revenue in the United States increased 84.5 percent to ¥13.8 billion as a result of strong sales of cefiderocol*1 and a one-time payment received in connection with the transfer of the sales rights to FORTAMET. Sales of cefiderocol increased 268.7 percent to ¥6.2 billion. In Europe, revenue increased 153.7 percent to ¥5.0 billion on strong sales of cefiderocol. In addition, the Shionogi Group began sales in Italy. The Shionogi Group will drive growth in its European and North American businesses by continuing to expand cefiderocol sales to more countries and by expanding the number of countries adopting the subscription-type reimbursement model*2. In China, sales in existing generic business decreased amid medical cost control measures by the Chinese government, but revenue increased 1.1 percent to ¥10.2 billion to the effect of exchange rate fluctuations.*1 Sold under the brand name Fetroja in the United States and Fetcroja in Europe*2 A subscription-type reimbursement model in which the country can receive antibiotics when needed by paying a fixed remuneration to the developing company irrespective of the amount of antibiotics prescription.SHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 3 -■ Royalty income and dividend income from ViiVSales of the HIV franchise out-licensed to UK-based ViiV Healthcare Ltd. (“ViiV”) expanded, and royalty income from ViiV, excluding upfront payments, increased compared with the previous year. In addition, a settlement was reached in ViiV’s patent infringement litigation against U.S.-based Gilead Sciences, Inc. (“Gilead”) in the fiscal year ended March 31, 2022. Under the terms of the settlement, Gilead paid ViiV $1.25 billion upfront and will pay ViiV a 3% royalty on future U.S. sales of Biktarvy (for reference: $6.09 billion in 2020) and on the bictegravir component of any future bictegravir-containing products sold in the United States. ViiV paid a portion of the upfront payment to Shionogi, which Shionogi recognized as revenue. Also, Shionogi and ViiV have agreed to a defined annual payment to Shionogi from ViiV in respect of the 3% royalties, which Shionogi recorded as revenue for the fiscal year ended March 31, 2022. As a result, royalty income from ViiV increased 41.0 percent from the previous year to ¥174.0 billion.Royalty income from Switzerland-based Roche was ¥40.0 million in the fiscal year ended March 31, 2022 as the scale of the seasonal influenza epidemic was extremely small globally, similar to the previous season.Royalty income on Crestor sales from UK-based AstraZeneca decreased 93.1 percent to ¥1.2 billion because the amount received decreased starting in the fourth quarter of fiscal 2020 under the license agreement.Total royalty, milestone and dividend income for the fiscal year ended March 31, 2022 increased 15.6 percent year-on-year to ¥194.2 billion, reflecting the increase in royalty income from the HIV franchise.2) Research and developmentDuring the fiscal year ended March 31, 2022, Shionogi continued to make aggressive investments in research and development, and by dealing appropriately with changes in the environment brought about by COVID-19, was able to make progress on high-priority projects basically as planned.■ ResearchS-880008, a COVID-19 treatment candidate, moved into preclinical studies this fiscal year toward the goal of beginning clinical development. This compound is a peptide created using technology developed by PeptiDream. Once-daily administration is expected to improve symptoms due to rapid viral elimination. In other COVID-19 treatments, the Shionogi Group made progress on a project to create a follow-up compound to S-217622.In the vaccine business, the Shionogi Group worked on a project to develop a nasal vaccine that induces mucosal immunity as a next-generation COVID-19 vaccine. In addition, the Shionogi Group carried out preclinical studies of S-872600, a nasal vaccine for influenza.S-540956, a nucleic acid adjuvant, has potential oncology and infectious disease-related applications, for example as a functional cure for HIV. In the fiscal year ended March 31, 2022, preclinical studies progressed toward the goal of beginning clinical development.S-531011, a cancer-targeting antibody, is intended to address patient needs that are not met with current cancer therapies. In the fiscal year ended March 31, 2022, preclinical studies were completed, and a Phase Ib/II study began.S-365598 is a third-generation integrase inhibitor that is expected to be a long-acting (one dose every three months or more) anti-HIV drug. In the fiscal year ended March 31, 2022, Shionogi proceeded with preclinical studies and out-licensed S-365598 to ViiV.■ DevelopmentFor zuranolone (S-812217), a candidate for the treatment of depression and depression symptoms that was licensed from Sage Therapeutics of the United States, positive results were confirmed in a Phase II study for major depressive disorder in Japan. A Phase III study in Japan started in the fiscal year ended March 31, 2022.For sivopixant (S-600918), a global Phase IIb study for refractory chronic cough moved forward and observation of all patients was completed. The study showed a favorable safety profile and a tendency toward efficacy in multiple secondary endpoints.Redasemtide (S-005151), a peptide with regeneration-inducing effects that was licensed from StemRIM, is expected to have indications for a wide range of diseases because of its mechanism of action. In the fiscal year ended March 31, 2022, Phase II clinical studies in Japan for acute ischemic stroke were completed, and preparations for the start of Phase III studies began. In addition, an investigator-led clinical study (Phase II) for knee osteoarthritis and chronic liver disease moved forward.For BPN14770, a drug candidate for improvement of cognitive function that was licensed from Tetra Therapeutics, a Phase IIb/III study in the United States for Fragile X Syndrome began in the fiscal year ended March 31, 2022. In addition, Shionogi began a Phase II study in Japan for Alzheimer’s disease, but discontinued the study due to safety concerns. Shionogi will continue to develop this compound for the indication of Alzheimer’s disease.S-637880 was being developed for the indication of neuropathic low back pain, and a Phase II study in Japan was in progress, but development for the indication of neuropathic low back pain was discontinued because of safety concerns.■ Response to COVID-19As a pharmaceutical company with a major focus on infectious diseases, Shionogi is cooperating with public institutions, academia and partner companies to work on research and development of a wide range of healthcare-related solutions. SHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 4 -Year endedMarch 31, 2020Year endedMarch 31, 2021Year endedMarch 31, 2022Ratio of equity attributable to owners of parent to total assets87.6%84.7%84.8%Ratio of equity attributable to owners of parent to total assets on market value basis184.9%179.6%197.3%Interest-bearing liabilities/Cash flow ratio0.10.10.1Interest coverage ratio (times)378.1425.61,161.1Shionogi is working on the provision of services from the viewpoint of total care of COVID-19, from detection (epidemic prediction) to prevention, diagnosis, treatment and reduction of severity, with the goal of an early end to the pandemic.(2) Financial Position for the Fiscal Year Ended March 31, 2022As of March 31, 2022, total assets were ¥1,150,601 million, an increase of ¥151,608 million from a year earlier.Non-current assets were ¥491,396 million, an increase of ¥48,641 million from a year earlier, mainly reflecting an increase in financial assets measured at fair value through other comprehensive income and an increase in property, plant and equipment due to the construction of vaccine manufacturing facilities. Current assets were ¥659,205 million, an increase of ¥102,967 million compared to a year earlier, mainly as a result of changes in trade receivables and in fixed-term deposits of more than three months and bonds (included in “Other financial assets” in current assets).Equity was ¥993,285 million, an increase of ¥128,734 million from a year earlier. This was due to the recording of profit, payment of cash dividends, a net change in financial assets measured at fair value through other comprehensive income, and an increase in exchange differences on translation of foreign operations.Liabilities totaled ¥157,316 million, an increase of ¥22,874 million from a year earlier. Non-current liabilities were ¥32,920 million, a decrease of ¥1,341 million from a year earlier. Current liabilities were ¥124,396 million, an increase of ¥24,215 million from a year earlier.(3) Cash Flows for the Fiscal Year Ended March 31, 2022Net cash provided by operating activities during the fiscal year ended March 31, 2022 was ¥102,068 million, a decrease of ¥6,970 million year on year. Factors included a favorable judgement of the complaint for the rescission of tax reassessment by the Osaka Regional Taxation Bureau, a decrease in profit before tax and an increase in trade receivables.Net cash used in investing activities was ¥96,204 million, a increase of ¥90,942 million year on year. Factors included changes in time deposits and acquisition and sale of securities for investment of surplus.Net cash used in financing activities was ¥36,615 million, a decrease of ¥7,276 million year on year. Factors included purchase of treasury shares, disposal of treasury shares by third-party allotment, and proceeds from issuance of shares related to the establishment of a subsidiary with Ping An Insurance (Group) Company of China, Ltd.As a result, cash and cash equivalents at March 31, 2022 totaled ¥254,420 million, a decrease of ¥21,752 million from a year earlier.Cash flow indicatorsNotes: Ratio of equity attributable to owners of parent to total assets: Equity attributable to owners of parent/Total assetsRatio of equity attributable to owners of parent to total assets on market value basis: Total market value of stock/Total assetsInterest-bearing liabilities/Cash flow ratio: Interest-bearing liabilities/Net cash provided by operating activitiesInterest coverage ratio: Net cash provided by operating activities/Interest expense1. All indicators are calculated on a consolidated basis.2. Total market value of stock is calculated based on the total number of shares outstanding excluding treasury stock.3. Net cash provided by operating activities is as reported in the consolidated statements of cash flows.4. Interest-bearing liabilities are liabilities stated on the consolidated balance sheets on which interest is paid.SHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 5 -RevenueOperating profitProfit before taxProfit attributable to owners of parentYear ending March 31, 2023400,000120,000168,000136,000(4) OutlookThe financial forecast for the year ending March 31, 2023 is as follows.Millions of yenIn the next fiscal year, while there are various uncertainties due to the effects of COVID-19, Shionogi will strive to fulfill its social responsibility as a leader in the infectious disease field.Although there are factors that will reduce revenue, such as a decline in revenue for prescription drugs in Japan following the launch of a generic version of Cymbalta, Shionogi is projecting an expansion in sales of over-the-counter products in Japan and cefiderocol in Europe and the United States, as well as expansion of business in China. In addition, Shionogi expects the commercialization of COVID-19-related products, in which it has been making upfront investments since fiscal 2021, to contribute to revenue in the next fiscal year after obtaining regulatory approval. Although Shionogi is expecting an increase in royalties from Dovato, Apretude, which has been newly approved as a preventive drug, and Cabenuva, a long-acting injectable formulation, royalties from HIV-related products are projected to decrease overall because Shionogi recognized HIV royalty revenue in connection with the settlement of dolutegravir patent infringement litigation with Gilead in the fiscal year ended March 31, 2022. As a result of these factors, Shionogi projects an increase in revenue overall.As for profit, Shionogi expects an increase in cost of sales due to the effect of changes in the product mix, and an increase in selling, general and administrative expenses following the launch of COVID-19-related products. Research and development expenses are expected to decrease due to the development status of COVID-19-related projects. On the other hand, finance income is projected to increase due to the effect of the postponement of dividend income from ViiV, which Shionogi had been scheduled to receive in the fiscal year ended March 31, 2022. As a result, operating profit, profit before tax, and profit attributable to owners of parent are each projected to increase.The global COVID-19 pandemic, which began at the end of 2019, continues to have profound impacts on society, but the pandemic situation, the related environment, and the needs of society are constantly changing. If any events occur that have an effect on the performance outlook, Shionogi will make a timely announcement as soon as it is able to estimate the impact on the financial forecast.SHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 6 -2. Accounting StandardsThe Shionogi Group will voluntarily adopt International Financial Reporting Standards (IFRS) to enhance the international comparability of financial statements and to improve business operations by unifying accounting standards within the Group.SHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 7 -Year endedMarch 31, 2021Year endedMarch 31, 2022Revenue297,177335,138Cost of sales(52,523)(55,415)Gross profit244,654279,722Selling, general and administrative expenses(91,902)(91,771)Research and development expenses(54,249)(72,996)Amortization of intangible assets associated with products(3,209)(3,476)Other income26,4033,384Other expenses(4,257)(4,551)Operating profit117,438110,312Finance income26,52216,797Finance costs(941)(841)Profit before tax143,018126,268Income tax expense(30,956)(12,829)Profit112,061113,439Profit (loss) attributable toOwners of parent111,858114,185Non-controlling interests203(746)Profit112,061113,439Earnings per shareBasic earnings per share365.03378.75Diluted earnings per share364.89378.633. Consolidated Financial Statements and Notes(1) Consolidated statement of profit or loss and Consolidated statement of comprehensive incomeConsolidated statement of profit or lossMillions of yenSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 8 -Year ended March 31, 2021Year ended March 31, 2022Profit112,061113,439Other comprehensive incomeItems that will not be reclassified to profit or lossNet change in fair value of equity instruments designated as measured at fair value through other comprehensive income(4,677)17,846Remeasurements of defined benefit plans(96)(333)Total of items that will not be reclassified to profit or loss(4,774)17,513Items that may be reclassified to profit or lossExchange differences on translation of foreign operations36,04929,793Effective portion of cash flow hedges(5,828)1,023Total of items that may be reclassified to profit or loss30,22130,817Total other comprehensive income, net of tax25,44748,330Comprehensive income137,509161,769Comprehensive income attributable toOwners of parent137,407161,865Non-controlling interests101(95)Comprehensive income137,509161,769Consolidated statement of comprehensive incomeMillions of yenSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 9 -As of March 31, 2021As of March 31, 2022AssetsNon-current assetsProperty, plant and equipment90,883108,893Goodwill9,3579,638Intangible assets76,55881,223Right-of-use assets4,8273,524Investment property26,75926,672Other financial assets217,437242,479Deferred tax assets11,72912,907Other non-current assets5,2006,055Total non-current assets442,754491,396Current assetsInventories38,00345,892Trade receivables78,047122,965Other financial assets142,151210,757Income taxes receivable16451Other current assets21,69725,117Cash and cash equivalents276,173254,420Total current assets556,238659,205Total assets998,9921,150,601(2) Consolidated statement of financial positionMillions of yenSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 10 -As of March 31, 2021As of March 31, 2022Equity and liabilitiesEquityShare capital21,27921,279Capital surplus13,73314,455Treasury shares(57,989)(57,857)Retained earnings752,248832,958Other components of equity116,836164,824Equity attributable to owners of parent846,108975,661Non-controlling interests18,44217,624Total equity864,550993,285LiabilitiesNon-current liabilitiesLease liabilities4,6083,729Other financial liabilities5,2425,616Retirement benefit liability16,31815,412Deferred tax liabilities7,7497,807Other non-current liabilities341354Total non-current liabilities34,26132,920Current liabilitiesLease liabilities3,3792,945Trade payables9,90216,372Other financial liabilities21,38322,027Income taxes payable28,03317,973Other current liabilities37,48165,078Total current liabilities100,180124,396Total liabilities134,442157,316Total equity and liabilities998,9921,150,601Millions of yenSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 11 -Share capitalCapital surplusTreasury sharesRetained earningsOther components of equityEquity attributable to owners ofparentNon-controlling interestsTotal equityBalance as of April 1, 202021,27921,025(77,292)708,29191,848765,15251765,203Profit111,858111,858203112,061Total other comprehensive income, net of tax25,54825,548(101)25,447Comprehensive income—111,85825,548137,407101137,509Purchase of treasury shares(50,013)(50,013)(50,013)Disposal of treasury shares(4,705)38,40433,69833,698Cancellation of treasury shares(30,912)30,912–Dividends(32,543)(32,543)(32,543)Change in scope of consolidation-10,69610,696Changes in ownership interest in subsidiaries(7,593)(7,593)7,593-Transfer from other components of equity to retained earnings71(71)–Other35,919(35,430)(488)(0)(0)Balance as of March 31,202121,27913,733(57,989)752,248116,836846,10818,442864,550Profit114,185114,185(746)113,439Total other comprehensive income, net of tax47,67947,67965048,330Comprehensive income—114,18547,679161,865(95)161,769Purchase of treasury shares(14)(14)(14)Disposal of treasury shares(5)147141141Dividends(33,162)(33,162)(33,162)Transfer from other components of equity to retained earnings(308)308–Other727(5)722(722)-Balance as of March 31, 202221,27914,455(57,857)832,958164,824975,66117,624993,285(3) Consolidated statement of changes in equityMillions of yenSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 12 -Year ended March 31, 2021Year ended March 31, 2022Cash flows from operating activitiesProfit before tax143,018126,268Depreciation and amortization14,77916,351Impairment losses825141Finance income and finance costs(25,836)(15,597)Decrease (increase) in trade and other receivables2,993(43,417)Decrease (increase) in inventories(3,435)(7,133)Increase (decrease) in trade and other payables(2,380)11,686Other(16,524)15,087Subtotal113,438103,387Interest and dividends received28,11124,807Interest paid(256)(87)Income taxes paid(32,254)(39,324)Income taxes refund－13,286Net cash provided by (used in) operating activities109,039102,068Cash flows from investing activitiesPayments into time deposits(230,468)(260,380)Proceeds from withdrawal of time deposits269,696234,685Purchase of property, plant and equipment(28,182)(26,185)Purchase of intangible assets(4,762)(5,379)Payments for acquisition of subsidiaries(3,636)－Purchase of investments(120,478)(139,396)Proceeds from sale of investments116,26599,511Other(3,694)940Net cash provided by (used in) investing activities(5,261)(96,204)(4) Consolidated statement of cash flowsMillions of yenSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 13 -Year ended March 31, 2021Year ended March 31, 2022Cash flows from financing activitiesRepayments of lease liabilities(3,648)(3,453)Purchase of treasury shares(50,134)(14)Proceeds from sale of treasury shares33,534－Dividends paid(32,529)(33,146)Payments for acquisition of interests in subsidiariesfrom non-controlling interests(1,575)－Capital contribution from non-controlling interests10,464－Other(0)－Net cash provided by (used in) financing activities(43,891)(36,615)Effect of exchange rate changes on cash and cash equivalents7,4258,998Net increase (decrease) in cash and cash equivalents67,312(21,752)Cash and cash equivalents at beginning of period208,861276,173Cash and cash equivalents at end of period276,173254,420Millions of yenSHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 14 -(5) NotesGoing concern assumptionNoneSegment informationYear ended March 31, 2021 (April 1, 2020 to March 31, 2021) and Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)Shionogi group has a single business segment related to prescription drugs. The group operates research, development, purchase, manufacturing, and distributing prescription drugs and related businesses. While analysis of each product sales and profits or expenses of each subsidiary are made, decision of business strategy and allocation of the management resources, especially allocation of R&D expenses, are made on a company-wide basis. Therefore disclosure of segment information is omitted.SHIONOGI & CO., LTD. (4507)Financial Results for Fiscal Year 2021- 15 -ItemYear ended March 31, 2021Year ended March 31, 2022Basis for calculating basic earnings per shareProfit attributable to owners of parent111,858 million yen114,185 million yenProfit not attributable to ordinary equity holders of parent－－Profit used for calculating basic earnings per share111,858 million yen114,185 million yenWeighted-average number of ordinary shares outstanding306,441 thousands of stocks301,478 thousands of stocksBasis for calculating diluted earnings per shareProfit for the year used for calculating basic earnings per share111,858 million yen114,185 million yenAdjustments to profit－－Profit for the year used for calculating diluted earnings per share111,858 million yen114,185 million yenWeighted-average number of ordinary shares outstanding306,441 thousands of stocks301,478 thousands of stocksIncrease in number of ordinary shares from exercise of stock options112 thousands of stocks100 thousands of stocksWeighted-average number of dilutive ordinary shares outstanding306,554 thousands of stocks301,579 thousands of stocksEarnings per shareBasic earnings per share365.03 yen378.75 yenDiluted earnings per share364.89 yen378.63 yenEarnings per shareThe basis for calculating basic earnings per share and diluted earnings per share is as follows.Notes: No financial instruments are excluded from the calculation of diluted earnings per share because they are not dilutive.Important subsequent eventsNone