Torii Pharmaceutical : Financial Results for the Fiscal Year 2022, Ended December 31, 2022

Financial Results for the Fiscal Year 2022,

Ended December 31, 2022

Ⅰ Summary Information	P.1
①	Financial Results	P.1
②	Financial Conditions	P.1
③	Statement of Cash Flows	P.1
④	Capital Expenditures	P.1
⑤	Depreciation/Amortization	P.1
Ⅱ Financial Results for the FY2022	P.2
①	Statement of Income	P.2
②	Sales of Products	P.4
③	Research and Development	P.5
Ⅲ Financial Forecasts for the FY2023	P.6
①	Statement of Income	P.6
②	Sales of Products	P.8

• This material is prepared based on Japan GAAP.
• Amounts are rounded down to the nearest million yen.
• The forecasts presented in this material are forward-looking statements. Reflecting assumptions based on information available on the date of publication, these statements are subject to inherent risks and uncertainties. Accordingly, unforeseen factors may cause actual results to differ materially from the projections contained herein.
  Torii will not necessarily revise this material regardless of any new information, future events or other results.

February 10, 2023

TORII PHARMACEUTICAL CO., LTD.

• Summary Information
• Financial Results

※1 ''Accounting Standard for Revenue Recognition'' etc. have been applied from the beginning of FY2022.

※2 ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the FY2021 retroactively. Increase (Decrease) in figures is reference values.

(Millions of Yen)		FY2021	FY2022	Change	Change	FY2023	Change	Change
	※1	（％）	Forecast ※1	（％）
		A	B	B-A	(B-A)/A	C	C-B	（C-B)/B
Net sales		46,987	48,896	1,908	※2	4.1 ※2	50,900	2,003	4.1
Operating income		4,656	5,540	884		19.0	4,100	(1,440)	(26.0)
Ordinary income		4,847	5,537	689		14.2	4,400	(1,137)	(20.5)
Net income		3,374	3,944	569		16.9	3,100	(844)	(21.4)
(Reference)
R&D expenses		832	1,661	828		99.5	3,530	1,868	112.5
Earnings per share	（￥）	120.13	140.39	20.26			110.33	(30.06)
(EPS)
Return on equity	（％）	2.9	3.3	0.4
(ROE)
Ratio of ordinary income	（％）	3.8	4.2	0.4
to total assets
Ratio of operating income	（％）	9.9	11.3	1.4	※2
to net sales
Return on assets	（％）	2.6	3.0	0.4
(ROA)

• Financial Conditions

(Millions of Yen)		December 31,	December 31,	Change	Change
	2021	2022	（％）
		A	B	B-A	(B-A)/A
Total assets		130,810	133,689	2,878	2.2
Total equity		117,015	119,224	2,209	1.9
Equity ratio	（％）	89.5	89.2	(0.3)
Book value per share (BPS)	（￥）	4,165.38	4,243.08	77.70
③ Statement of Cash Flows
(Millions of Yen)		FY2021	FY2022	Change
		A	B	B-A
Net cash provided by operating activities	(156)	2,420	2,576
Net cash used in investing activities	(1,498)	(13,676)	(12,178)
Net cash used in financing activities	(1,546)	(1,698)	(151)
Cash and cash equivalents, end of period	58,374	45,420	(12,954)

• Capital Expenditures

(Millions of Yen)	FY2021	FY2022	Change	Change	FY2023		Change	Change
（％）	Forecast		（％）
	A	B	B-A	(B-A)/A	C		C-B	（C-B)/B
Capital expenditures	822	662	(159)	(19.4)		300	(362)	(54.7)
PP&E	597	504	(93)	(15.6)		180	(324)	(64.3)
Intangible assets	224	158	(66)	(29.6)		120	(38)	(24.1)

• Depreciation/Amortization

(Millions of Yen)	FY2021	FY2022	Change	Change	FY2023	Change	Change
（％）	Forecast	（％）
	A	B	B-A	(B-A)/A	C	C-B	（C-B)/B
Depreciation and amortization	413	454	41	10.0	490	35	7.8
of intangible assets
Amortization of long-term	722	767	45	6.2	660	(107)	(14.0)
prepaid expenses

－1－

• Financial Results for the FY2022
• Statement of Income

※1 ''Accounting Standard for Revenue Recognition'' etc. have been applied from the beginning of FY2022. ※2 ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the FY2021

retroactively. Increase (Decrease) in figures is reference values.

(Millions of Yen)	FY2021	FY2022	Change	Change
※1	（％）
	A	B	B-A	(B-A)/A
Net sales	46,987	48,896	1,908	※2	4.1 ※2
Sales of products	46,290	48,563	2,272	※2	4.9 ※2
Renal disease and hemodialysis	13,502	12,013	(1,489) ※2	(11.0)※2
Skin disease	11,992	12,391	399	※2	3.3	※2
Allergens	15,971	18,499	2,528	※2	15.8	※2
Other	4,824	5,658	834	※2	17.3 ※2
Other sales	697	332	(364)	※2	(52.3)※2
Cost of sales	22,649	25,516	2,867	※2	12.7 ※2
Cost of products sold	22,591	25,437	2,845	※2	12.6 ※2
Other cost	57	79	21		37.7
Gross profit	24,338	23,379	(958) ※2	(3.9)※2
Selling, general and	19,682	17,839	(1,843) ※2	(9.4)※2
administrative expenses
R&D expenses	832	1,661	828		99.5
Others	18,849	16,177	(2,671) ※2	(14.2)※2
Operating income	4,656	5,540	884		19.0
Non-operating income and expenses	191	(3)	(194)
Ordinary income	4,847	5,537	689		14.2
Extraordinary income and loss	(79)	185	265
Income before income taxes	4,767	5,722	955		20.0
Income taxes	1,392	1,778	385
Net income	3,374	3,944	569		16.9
(Reference) Ratio to net sales
(％)	FY2021	FY2022	Change
※1	※2
	A	B	B-A
Cost of sales	48.2	52.2	4.0
SG&A	41.9	36.5	(5.4)
R&D expenses	1.8	3.4	1.6
Operating income	9.9	11.3	1.4
Ordinary income	10.3	11.3	1.0
Net income	7.2	8.1	0.9

－2－

【Factors in increase/decrease compared with the same term of the last fiscal year】

Operating income（￥5,540 million : Increase ￥884 million year-on-year）

• Sales and profits increase with increase in net sales of Allergens and CORECTIM

（millions of yen）

8,000

6,000

+1,908※

(2,867)※

4,000

+2,671※

2,000

(828)

5,540

4,656

0

FY2021

Net sales

Cost of sales

R&D expenses

Others

FY2022

• ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the FY2021 retroactively. Increase (Decrease) in figures is reference values.

Major factors in increase/decrease
Net sales	: Increase in sales quantity（CORECTIM, MITICURE, CEDARCURE, ORLADEYO）
	Decrease due to application of ''Accounting Standard for Revenue Recognition''
	Decrease in the drug price revisions
	Decrease in sales quantity（REMITCH, ANTEBATE）
Cost of sales	: Increase in sales quantity
	Increase due to application of ''Accounting Standard for Revenue Recognition''
	Increase due to the effect of foreign exchange rates
R&D expense	: Increase in clinical study expenses（TO-208）
	Increase in expenses for improvement of the product quality in Allergens
Others	: Decrease due to application of ''Accounting Standard for Revenue Recognition''
	Increase in sales-linked expenses

Ordinary income（￥5,537 million : Increase ￥689 million year-on-year）

(FY2022) Non-operating expenses : Cancellation penalty of a manufacturing contract	¥141 million
Non-operating expenses : Increase in foreign exchange losses on trade payables etc. due to yen depreciation	+¥72 million

Net income（￥3,944 million : Increase ￥569 million year-on-year）

(FY2022) Extraordinary income : Gain on sales of investment securities due to reduction of policy shareholdings

¥187 million

－3－

• Sales of Products

※1 "Accounting Standard for Revenue Recognition" etc. have been applied from the beginning of the current fiscal year. The standard is different from the revenue recognition in the results for the FY2021. Increase (Decrease) in

products is not listed.

※2 ''Accounting Standard for Revenue Recognition'' etc. have not been applied to the results for the FY2021 retroactively. Increase (Decrease) in figures is reference values.

(Millions of Yen)	FY2021	FY2022	Change	Change (％)
※1	※1	※1
	A	B	B-A	(B-A)/A

Sales of Products		46,290	48,563	2,272	※2	4.9	※2
[Renal disease and hemodialysis]
Riona		6,863	6,939	－		－
Agent for hyperphosphatemia, Iron-deficiency anemia
REMITCH		5,058	3,536	－		－
Oral anti-pruritus agent
KAYEXALATE	※3	1,525	1,230	－		－
Agent for hyperkalemia
Others		55	306	－		－
Total		13,502	12,013	(1,489)	※2	(11.0)	※2
[Skin disease]
CORECTIM		4,025	5,469	－		－
Topical Janus kinase (JAK) inhibitor
ANTEBATE	※3	4,825	3,995	－		－
Topical corticosteroid
LOCOID	※3	1,698	1,476	－		－
Topical corticosteroid
ZEFNART		1,043	1,091	－		－
Topical antifungal agent
Others		398	358	－		－
Total		11,992	12,391	399	※2	3.3	※2
[Allergens]
CEDARCURE	※3	8,325	9,608	－		－
Japanese cedar pollinosis (Allergen Immunotherapy)
MITICURE	※3	7,386	8,694	－		－
House dust mite allergy (Allergen Immunotherapy)
Others		258	196	－		－
Total		15,971	18,499	2,528	※2	15.8	※2
[Other]
BIO-THREE		3,213	3,361	－		－
Viable bacterial preparations
ORLADEYO	※4	399	1,313	－		－
Plasma kallikrein inhibitor
Others		1,211	983	－		－
Total		4,824	5,658	834	※2	17.3	※2
※3 In-house products
※4 Launched in April 2021
(References) Sales and ratio of in-house products
(Millions of Yen)		FY2021	FY2022	Change	Change (％)
	※1	※1		※1
		A	B	B-A	(B-A)/A
Sales of in-house products	24,843	25,933	－		－
Ratio of in-house product sales （％）	53.7	53.4	－		－

－4－