科研製薬（4521） – [Delayed][Summary]Consolidated Financial Results for the Year Ended March 31, 2022

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [JGAAP] May 11, 2022 KAKEN PHARMACEUTICAL CO., LTD. Tokyo Stock Exchange 4521 https://www.kaken.co.jp/Hiroyuki Horiuchi, President and Representative Director Kazuhiro Kondo, General Manager of General Affairs Department +81-3-5977-5002Company name: Stock exchange listing: Securities code number: URL:Representative: Contact: Telephone:Scheduled date of annual general meeting of shareholders: Scheduled date of dividend payment commencement: Scheduled date of securities report submission: Supplementary materials for financial results: Financial results briefing: June 29, 2022 June 30, 2022 June 29, 2022 Yes Yes (for institutional investors and analysts) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Amounts are rounded down to the nearest million yen) (1) Consolidated Operating Results(Percentage figures indicate changes from the previous year) Net sales Operating profitOrdinary profitProfit attributable to owners of the Company (Million yen) (%) (Million yen) (%) (Million yen) (%) (Million yen) (%) 1.417,064(4.1)17,542(3.7)9,549 (28.8)(16.0) 17,788 (32.9)18,222 (32.4) 13,405 (30.8) Year ended March 31, 2021 Year ended March 31, 2022 Note: 76,03474,979Comprehensive income: Fiscal 2021: ¥ 9,563 million [(42.1)%] Fiscal 2020: ¥ 16,532 million [(5.5)%] Basic earnings Diluted earnings per share (Yen)per share (Yen)Return on equity Ratio of ordinary Ratio of operating profit to total assets profit to net sales (%)(%)(%)251.43347.37–7.010.110.711.322.423.7Year ended March 31, 2021 Year ended March 31, 2022 Reference: Share of profit (loss) of entities accounted for using equity method: Fiscal 2021: ¥ – million Fiscal 2020: ¥ – million Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, issued on March 31, 2020) since the start of the fiscal year under review. The figures for the fiscal year ended in March 2022 have reflected the adoption of the said Accounting Standard. 1 (2) Consolidated Financial PositionTotal assets (Million yen) Net assets (Million yen) Equity-to-asset ratio Net assets per share (%) (Yen) 163,332138,325165,181As of March 31, 2021 As of March 31, 2022 Reference: Equity: As of March 31, 2022: As of March 31, 2021: Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, issued on March 31, 2020) since the start of the fiscal year under review. The figures for the fiscal year ended in March 2022 have reflected the adoption of the said Accounting Standard. ¥ 137,747 million ¥ 136,257 million 3,642.343,555.93136,25783.483.4(3) Consolidated Cash FlowsYear ended March 31, 2021 Year ended March 31, 2022 2. Cash DividendsCash flows from Cash flows from Cash flows from Cash and cash equivalents operating activities investing activities financing activities at end of period (Million yen) (Million yen) (Million yen) (Million yen) 13,33614,380(7,888)(1,644)(8,129)(8,752)74,62577,305Annual dividends per share 1st quarter 2nd quarter 3rd quarter Year-end Total Total cash dividends Payout ratio dividends to Ratio of net assets (Annual) (Consolidated) (Consolidated) (Yen) (Yen) (Yen) (Yen) (Yen) (Million yen) (%) (%) Year ended March 31, 2021 Year ended March 31, 2022 Year ending March 31, 2023 (Forecast) —75.00 75.00 75.00 —75.00 150.0075.00 150.0075.00 150.005,7675,67843.259.747.34.44.23. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)Net sales Operating profitOrdinary profit(Percentage indicates year-on-year change) Basic earnings per share owners of the Company Profit attributable to (Million yen) (%) (Million yen) (%) (Million yen) (%) (Million yen) (%) (Yen) Year ending March 31, 2023 76,4000.5 15,000 (12.1)15,500 (11.6) 12,000 25.7 317.31 2 * Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changes inscope of consolidation): None(2) Changes in accounting policies, changes in accounting estimates, and restatement1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes2) Changes in accounting policies other than 1): None3) Changes in accounting estimates: None4) Restatement: None(3) Number of issued shares (common stock)1) Number of issued shares at the end ofthe period (including treasury stock)As of March 31, 2022 2) Number of treasury shares at the endof the periodperiod3) Average number of shares during theAs of March 31, 2022 Fiscal year ended 2021 45,939,730 shares 45,939,730 shares As of March 31, 2021 As of March 31, 2021 Fiscal year ended 2020 8,121,361 shares 7,621,338 shares 37,978,940 shares 38,590,066 shares Note: The number of treasury shares at the end of the period includes Company’s shares held by the “Board Benefit Trust (BBT)” (38,500 shares as of March 31, 2022 and 39,400 shares as of March 31, 2021). The Company’s shares held by the BBT are included in the number of treasury stock to be deducted in the calculation of the average number of shares during the period (38,776 shares as of March 31, 2022 and 39,926 shares as of March 31, 2021). * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.* Explanation of proper use of earnings forecasts, and other special matters:(Caution regarding forward-looking statements) The performance forecasts and other descriptions on future events presented in this material are based on information currently available and certain assumptions considered to be reasonable. The actual performance may differ from these forecasts. How to review the supplementary material to the financial results reports: It has been posted on the Company’s web site, along with the financial results reports. 3 3. Consolidated Financial Results for Fiscal 2021(1) Consolidated balance sheetsAssets Current assets Cash and deposits Notes and accounts receivable-trade Notes and accounts receivable – trade, and contract assets Marketable securities Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Construction in progress Total property, plant and equipment Intangible assets In-process research and development Other Total intangible assets Investments and other assets Investment securities Long-term prepaid expenses Deferred tax assets Other Total investments and other assets Total non-current assets Total assets Fiscal 2020 (As of March 31, 2021) (Millions of yen) Fiscal 2021 (As of March 31, 2022) 63,706 20,549 – 13,599 5,700 3,126 6,371 608 (0) 113,662 41,078 (24,998) 16,080 15,804 (13,223) 2,581 7,613 (6,109) 1,503 4,140 713 25,020 – 625 625 17,368 4,196 1,577 882 24,024 49,669 163,332 61,025 – 20,260 13,599 5,807 2,964 6,209 746 – 110,613 42,829 (25,687) 17,142 15,708 (13,452) 2,256 7,819 (6,425) 1,393 3,867 1,074 25,734 7,300 936 8,236 17,093 1,190 1,725 587 20,596 54,567 165,181 4 Liabilities Current liabilities Notes and accounts payable-trade Electronically recorded obligations-operating Short-term bank loans Accounts payable-other Accrued expenses Income taxes payable Provision for bonuses Provision for directors’ bonuses Provision for sales returns Provision for sales rebates Other Total current liabilities Non-current liabilities Provision for share-based remuneration Net defined benefit liability Deferred tax liabilities Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Accumulated other comprehensive income Net unrealized holding gain on securities Remeasurements of defined benefit plans Total accumulated other comprehensive incomeNon-controlling interests Total net assets Total liabilities and net assets Fiscal 2020 (As of March 31, 2021) (Millions of yen) Fiscal 2021 (As of March 31, 2022) 8,425 144 3,850 3,002 324 2,292 1,046 80 3 302 1,803 21,276 73 5,376 – 348 5,798 27,074 23,853 11,406 122,462 (26,304) 131,418 4,739 99 4,839 – 136,257 163,332 5,861 78 3,850 3,543 345 2,436 984 65 – – 1,884 19,049 106 5,039 2,229 431 7,806 26,855 23,853 11,406 126,347 (28,714) 132,893 4,551 301 4,853 578 138,325 165,181 5 (2) Consolidated statements of income and comprehensive income(Consolidated statements of income) (Millions of yen) Fiscal 2021 (April 1, 2021 – March 31, 2022) Fiscal 2020 (April 1, 2020 – March 31, 2021) 74,979 34,073 40,906 0 40,907 Net sales Cost of sales Gross profit Reversal of provision for sales returns Gross profit-net Selling, general and administrative expenses Salaries Bonuses and provision for bonuses Provision for directors’ bonuses Retirement benefit expenses Research and development expenses Depreciation Other Total selling, general and administrative expenses Operating profit Other income Interest income Dividends income Other Total other income Other expenses Interest expenses Foreign exchange losses Loss on cancellation of leases Other Total other expenses Ordinary profit Extraordinary income Gain on sales of non-current assets Gain on sales of investment securities Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Loss on impairment of non-current assets Contract loss Other Total extraordinary losses Profit before income taxes Income taxes-current Income taxes-deferred Total income taxes ProfitProfit attributable to non-controlling interests Profit attributable to owners of the Company 6 5,884 1,405 80 591 6,736 227 8,192 23,118 17,788 8 385 90 484 17 12 2 18 50 18,222 379 115 495 54 – – 5 59 18,6574,979 2725,252 13,405- 13,40576,034 34,458 41,575 – 41,575 5,662 1,302 65 375 8,420 258 8,426 24,511 17,064 6 390 146 543 17 31 7 9 66 17,542 195 1 197 97 2,994 762 – 3,854 13,8854,513 (177)4,336 9,549- 9,549(Consolidated statements of comprehensive income) Profit Other comprehensive income Net unrealized holding gain on securities Remeasurements of defined benefit plans Total other comprehensive income Comprehensive income Total comprehensive income attributable to Owners of the Company Non-controlling interests Fiscal 2020 (April 1, 2020 – March 31, 2021) 13,405 (Millions of yen) Fiscal 2021 (April 1, 2021 – March 31, 2022) 1,623 1,503 3,126 16,532 16,532 -9,549 (187) 202 14 9,5639,563 – 7 (3) Consolidated statements of changes in net assetsFiscal 2020 (April 1, 2020 – March 31, 2021)Common stock Capital surplus Treasury stock Total 23,85311,406114,869(23,373) 126,756Shareholders’ equity Retained earnings (Millions of yen) (5,812)13,405(5,812)13,405(2,941) 9 (2,941) 9 0 0-7,592 (2,931) 4,66123,85311,406122,462(26,304) 131,418Accumulated other comprehensive income Remeasurements of defined benefit plans Net unrealized holding gain on securities Total Total net assets 3,116(1,404)1,712128,468 3,1263,1264,839 (5,812) 13,405(2,941) 9 3,1267,788136,2571,6231,6234,7391,5031,50399Balance at the beginning of current period Changes during the year Cash dividendsProfit attributable to owners of the Company Purchase of treasury stock Disposal of treasury stock Other, netTotal changes during the year Balance at the end of current period Balance at the beginning of current period Changes during the year Cash dividends Profit attributable to owners of the Company Purchase of treasury stock Disposal of treasury stock Other, netTotal changes during the year Balance at the end of current period 8 Fiscal 2021 (April 1, 2021 – March 31, 2022) Common stock Capital surplus Treasury stock Total 23,85311,406122,462(26,304) 131,418Shareholders’ equity Retained earnings (Millions of yen) 23,853 11,406 122,514 (26,304) 131,470 51(5,716)9,5490 0-3,833 (2,409) 1,42323,85311,406126,347(28,714) 132,893Accumulated other comprehensive income Remeasurements of defined benefit plans Net unrealized holding gain on securities Total 4,739994,839Non-controlling interests Total net assets 51(5,716)9,549(2,414) 5 136,25751 136,309(5,716)9,549 (2,414) 5 593 2,016138,325(2,414) 5 –578 578578 Balance at the beginning of current period Cumulative effects of changes in accounting policies Restated balance Changes during the year Cash dividendsProfit attributable to owners of the Company Purchase of treasury stock Disposal of treasury stock Other, netTotal changes during the year Balance at the end of current period Balance at the beginning of current period Cumulative effects of changes in accounting policies Restated balance Changes during the year Cash dividendsProfit attributable to owners of the Company Purchase of treasury stock Disposal of treasury stock Other, net Total changes during the year Balance at the end of current period 4,739 99 4,839 (187) (187)4,551202 20230114 144,8539 Fiscal 2020 (April 1, 2020 – March 31, 2021) (Millions of yen) Fiscal 2021 (April 1, 2021 – March 31, 2022) 18,657 2,318 – – 239 (393) 17 (115) 46 (379) 1,251 (2,923) (112) 915 19,521 393 (17) (5,516) 14,380 (1,973) 874 (313) (20) 144 – (357) (1,644) (2,940) (5,811) (8,752) – 3,983 73,322 77,305 13,885 2,481 2,994 5 (44) (397) 17 (1) 97 (195) 392 241 (2,630) 542 17,387 397 (17) (4,431) 13,336 (2,986) 704 (271) – 5 (4,975) (365) (7,888) (2,414) (5,714) (8,129) -(2,680) 77,305 74,625 – (4) Consolidated statements of cash flows Cash flows from operating activities Profit before income taxes Depreciation Loss on impairment of non-current assets Amortization of goodwill Increase (decrease) in net defined benefit liability Interest and dividends income Interest expenses Loss (gain) on sale of investment securities Loss on retirement of non-current assets Loss (gain) on sales of property, plant and Decrease (increase) in notes and accounts equipment receivable-trade Decrease (increase) in inventories Increase (decrease) in notes and accounts payable-trade Other, net Subtotal Interest and dividends income received Interest paid Income taxes (paid) refund Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sales of investment securities Purchase of shares of subsidiaries resulting in change in scope of consolidation Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Net change in treasury stock Cash dividends paid Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of year 10