Sumitomo Dainippon Pharma : Supplementary Financial Data (IFRS) for the Year Ended March 31, 2021

Securities Code: 4506

Supplementary Financial Data (IFRS) for the Year Ended March 31, 2021

I.	Consolidated Financial Highlights	1
II.	Consolidated Statement of Profit or Loss	3
III.	Segment Information	4
IV.	Revenues Information	5

1. Consolidated Statement of Financial Position 7

VI.	Changes in Quarterly Results	8
VII.	Major Consolidated Subsidiaries	8
VIII.	Shareholder Positioning	9
IX.	Development Pipeline	10

1. Profiles of Major Products under Development 14

May 12, 2021

Sumitomo Dainippon Pharma Co., Ltd.

• This material contains forecasts, projections, targets, plans, and other forward-looking statements regarding the Group's financial results and other data. Such forward-looking statements are based on the Company's assumptions, estimates, outlook, and other judgments made in light of information available at the time of preparation of such statements and involve both known and unknown risks and uncertainties. Accordingly, plans, goals, and other statements may not be realized as described, and actual financial results, success/failure or progress of development, and other projections may differ materially from those presented herein.
• All values are rounded. Therefore totals may not be consistent with aggregated figures.

I. Consolidated Financial Highlights

1. Consolidated Statement of Profit or Loss (Core Basis)						(Billions of yen)
	FY2019		FY2020	Change			FY2021	Change
		% YoY		（Forecast)	% YoY
Revenue	482.8		516.0	6.9			578.0	12.0
Cost of sales *1	128.3		137.5	7.1			156.0	13.5
Gross profit	354.4		378.5	6.8			422.0	11.5
SG&A expenses *1	190.0		211.8	11.5			263.0	24.2
R&D expenses *1	92.6		97.1	4.8			95.0	(2.1)
Other operating income/expenses *2	0.2		(0.0)				-
Core operating profit	72.0		69.6	(3.3)			64.0	(8.0)
Changes in fair value of contingent	48.5		22.5				(1.0)
consideration (negative number indicates loss)
Other non-recurring items *3	(37.2)		(20.8)				(2.0)
(negative number indicates loss)
Operating profit	83.2		71.2	(14.4)			61.0	(14.4)
Net profit	35.9		36.8	2.5			N/A
Net profit attributable to owners of the parent	40.8		56.2	38.0			41.0	(27.1)
Basic earnings per share (yen）	102.58		141.50				103.20
Net profit/ Equity attributable to owners of the	7.9%		10.1%				6.9%
parent (ROE)
3.3%		3.1%				N/A
Return on invested capital (ROIC)
Payout ratio	27.3%		19.8%				27.1%
					*1	Exclude non-recurring items (impairment
2. Consolidated Statement of Profit				(Billions of yen)			loss, changes in fair value of contingent
or Loss (Full Basis)						consideration, etc.)
					*2 "share of P/L of associates accounted for
				Change
	FY2019		FY2020			using equity method"
		% YoY	*3
				Non-recurring items ("other operating
Revenue	482.7		516.0	6.9			income and expenses" except for *2
			items, impairment loss, etc.)
Cost of sales	129.7		137.8	6.2
Gross profit	353.1		378.2	7.1
SG&A expenses	154.3		190.4	23.3
R&D expenses	115.1		132.7	15.3
Other operating income/expenses	(0.4)		16.1
Operating profit	83.2		71.2	(14.4)
Finance income/costs	0.7		6.6
Profit before taxes	83.9		77.9	(7.3)
Income tax expenses	48.0		41.0
Net profit	35.9		36.8	2.5
Net profit attributable to owners of the parent	40.8		56.2	38.0
3. Consolidated Statement of
FY2019		FY2020	(Billions of yen)
Cash Flows
Net cash provided by operating activities	46.1		135.6
Net cash provided by (used in) investing activities	(312.7)		8.9
Net cash provided by (used in) financing activities	231.1		(57.2)
Cash and cash equivalents at the end of period	101.7		193.7

4. Foreign Exchange Rates	FY2019	FY2020	FY2021
	assumption
					Average
	Period end	Average	Period end	Average
	rate	rate	rate	rate	rate
Yen / USD	108.8	108.7	110.7	106.1	110.0
Yen / RMB	15.3	15.6	16.9	15.7	16.5

Forex sensitivity FY2021

(Impact of yen

depreciation by ￥1)

Core operating

Revenue profit

3.2 (0.2)

1.8 0.5

(Billions of yen)

―supplementary1―

5. Capital Expenditures/	FY2019	FY2020	Change	FY2021	Change
Depreciation and Amortization	(Forecast)	(Billions of yen)
Capital expenditures	12.0	12.7	0.7	12.0	(0.7)
Depreciation of	10.5	10.6	0.1	10.1	(0.5)
Property, plant and equipment
Amortization of Intangible assets	6.9	12.0	5.2	33.9	21.9
Related to products (patent rights/	4.4	9.6	5.1	31.2	21.6
marketing rights) included in above

Note: The amount of capital expenditures are for tangible fixed assets and software.

Major capital expenditure project in FY2021 (continued)

Reinforcement of production facilities, total budget ￥2.0billion, to be completed in FY2022

Establishment of manufacturing facility for regenerative medicine and cell therapy, total budget ￥1.1billion, to be completed in FY2021

―supplementary2―

II. Consolidated Statement of Profit or Loss

1. Consolidated Statement of Profit or Loss (Core Basis)		(Billions of yen)
	FY2019	FY2020		Change	Change
		%
Revenue	482.8	516.0		33.2	6.9
Overseas revenue	307.8	327.3		19.5	6.3
% of Revenue	63.8%	63.4%
Cost of sales	128.3	137.5		9.1	7.1
% of Revenue	26.6%	26.6%
Gross profit	354.4	378.5		24.0	6.8
SG&A expenses	190.0	211.8		21.8	11.5
Labor costs	80.7	100.1		19.4	24.0
Advertising and promotion costs	22.7	19.6		(3.1)	(13.8)
Sales promotion costs	15.1	17.8		2.7	18.2
Amortization/Depreciation	11.3	16.7		5.4	48.2
Others	60.2	57.6		(2.6)	(4.4)
R&D expenses	92.6	97.1		4.5	4.8
% of Revenue	19.2%	18.8%
Other operating income/expenses	0.2	(0.0)		(0.2)
Core operating profit	72.0	69.6		(2.4)	(3.3)
Changes in fair value of contingent	48.5	22.5		(26.0)
consideration *
Other non-recurring items *	(37.2)	(20.8)		16.4
Operating profit	83.2	71.2		(12.0)	(14.4)
Finance income	3.6	9.2		5.6
Finance costs	2.9	2.6		(0.3)
Profit before taxes	83.9	77.9		(6.1)	(7.3)
Income tax expenses	48.0	41.0		(7.0)
Net profit	35.9	36.8		0.9	2.5
Net profit attributable to owners	40.8	56.2		15.5	38.0
of the parent

* Negative number indicates loss.

billion	Change	FX rate
Japan	12.8
North America	19.2	(6.9)
China	(0.8)	0.1
Other Regions	2.4
Other	(0.5)

・Include Sumitovant +39.9

・Include Sumitovant +22.2

・Include Sumitovant 15.5

Changes in fair value of contingent
consideration	FY19	FY20
LONHALA®MAGNAIR®	*8.7	-
former BBI	*26.2	*17.0
former Tolero	*13.6	*5.5

• Decrease in fair value by review of business plan (cost reversal)

・FY19: Impairment loss of IPR&D FY20: Gain on sale of fixed assets and

impairment loss of IPR&D

・FY19: Reversal of deferred tax assets in U.S.

2. Adjustments to Core Operating Profit

							(Billions of yen)
FY2020 Results	Full Basis			Core Basis		Adjustment	Major adjustment items
Revenue	516.0		516.0		-
Cost of sales	137.8		137.5		(0.3)
Gross profit	378.2		378.5		0.3
SG&A expenses	190.4	211.8	21.4	Changes in fair value of contingent consideration 22.5
Business structure improvement expenses (0.9)
R&D expenses	132.7		97.1		(35.6)	Impaiment losses (35.4)
Other operating income	17.7		(0.0)		(17.7)	Gain on sale of former Ibaraki plant (16.7)
Other operating expenses	1.6			‐	(1.6)
Operating profit	71.2		69.6		(1.6)

―supplementary3―

III. Segment Information (Core Basis)

						(Billions of yen)
FY2020 Results		Pharmaceuticals Business		Other	Total
	North		Other
Japan	China	Subtotal	Business
	America	Regions
Revenue (Sales to customers)	152.5	281.5	27.8	17.2	479.1	36.9	516.0
Cost of sales	77.5	20.8	5.4	5.7	109.4	28.1	137.5
Gross profit	75.1	260.7	22.5	11.5	369.8	8.7	378.5
SG&A expenses	50.8	143.8	9.2	2.8	206.7	5.1	211.8
Core segment profit	24.3	116.9	13.2	8.7	163.1	3.6	166.7
R&D expenses *1					96.2	0.9	97.1
Other operating income/expenses					(0.0)	(0.0)	(0.0)
(Core basis)*2
Core operating profit					66.9	2.7	69.6
						(Billions of yen)
FY2021 Forecasts		Pharmaceuticals Business		Other
	North		Other		Total
Japan	China	Subtotal	Business
	America	Regions
Revenue (Sales to customers)	150.0	349.7	29.8	10.3	539.8	38.2	578.0
Cost of sales	78.1	38.5	5.5	4.6	126.7	29.3	156.0
Gross profit	71.9	311.2	24.3	5.7	413.1	8.9	422.0
SG&A expenses	52.9	191.9	10.9	1.6	257.3	5.7	263.0
Core segment profit	19.0	119.3	13.4	4.1	155.8	3.2	159.0
R&D expenses *1					94.0	1.0	95.0
Other operating income/expenses					-	-	-
(Core basis)*2
Core operating profit					61.8	2.2	64.0
						(Billions of yen)
（Ref.) FY2019 Results		Pharmaceuticals Business		Other
	North		Other		Total
Japan	China	Subtotal	Business
	America	Regions
Revenue (Sales to customers)	139.7	262.3	28.6	14.8	445.4	37.4	482.8
Cost of sales	65.0	24.0	5.4	5.0	99.5	28.9	128.3
Gross profit	74.7	238.3	23.2	9.8	346.0	8.4	354.4
SG&A expenses	51.8	120.8	8.8	3.4	184.8	5.2	190.0
Core segment profit	22.9	117.5	14.4	6.4	161.2	3.2	164.4
R&D expenses *1					91.7	0.9	92.6
Other operating income/expenses					0.1	0.0	0.2
(Core basis)*2
Core operating profit					69.7	2.3	72.0

*1 R&D expenses for pharmaceuticals business are controlled globally and not allocated to each segment. *2 P/L of associates accounted for using equity method

―supplementary4―