FY2027 1Q Earnings Presentation

Overview of Results

In FY2027 1Q, consolidated net sales were 11.89 hundred million yen, down -8.6% year-over-year, and EBITDA was 1.68 hundred million yen, down -17.3% year-over-year. Despite impacts from rising raw material costs and inventory valuation losses, orders remain firm from 2Q onward. Optimization of CCC under the medium-term plan significantly increased operating cash flow, and free cash flow doubled. The full-year forecast remains unchanged. A share transfer agreement was signed for succession of Kyorin Pharmaceutical's generics business to strengthen the long-term business base. Decided to acquire and cancel treasury shares equivalent to 4.4% of issued shares: 1,250,000 shares totaling 2,000 million yen.

Outlook and Capital Policy

Assuming firm orders from 2Q onward, the full-year forecast is maintained while capital investment to meet increased demand from government Gx policies has peaked. Will promote shareholder returns including share buybacks and effectively deploy cash. The medium- to long-term impact on performance from the succession of Kyorin Pharmaceutical's business is expected to be minor, and the optimization effects are disclosed to contribute to financial indicators in the medium-term plan.