Slide 1: FY2016 2Q Consolidated Financial Overview (IFRS based)
FY2016 2Q Consolidated Financial Overview (IFRS based) CHUGAI PHARMACEUTICAL CO., LTD. Executive Vice President, CFO Yoshio Itaya July 21/22, 2016
Slide 2: Forward-Looking Statements
FY2016 2Q Consolidated Financial Overview Forward-Looking Statements This presentation may include forward-looking statements pertaining to the business and prospects of Chugai Pharmaceutical Co., Ltd. (the “Company”). These statements reflect the Company’s current analysis of existing information a
Slide 3: 2Q Results Summary
FY2016 2Q Consolidated Financial Overview 2Q Results Summary Revenues: 247.5 billion yen (+7.3, +3.0% YoY) • Domestic sales excl. Tamiflu: increase due to steady growth of new products and mainstay products (+5.1, +2.8%) • Overseas sales: decrease due to impact of supply price reduction on Actemra
Slide 4: IFRS and Core Results Jan-Jun
FY2016 2Q Consolidated Financial Overview IFRS and Core Results Jan-Jun IFRS results Non-core items Core results (Billion JPY) 2016 2016 Intangible assets Others (Billions of JPY) Jan. - Jun. Jan. - Jun. 〔Non-Core items〕 Revenues 247.5 247.5 ●Intangible assets: Sales 237.2 237.2 Amortization of inta
Slide 5: Financial Overview Jan - Jun
FY2016 2Q Consolidated Financial Overview Year on Year (Core) Financial Overview Jan - Jun 2015 2016 (Billions of JPY) Jan - Jun Jan - Jun Growth vs. Revenues vs. Revenues (Billions of JPY) Revenues 240.2 247.5 +7.3 +3.0% Sales 232.6 237.2 +4.6 +2.0% ●Royalties and other operating income +2.8 excl.
Slide 6: Sales (excl. Tamiflu) Jan - Jun
FY2016 2Q Consolidated Financial Overview Year on Year Sales (excl. Tamiflu) Jan - Jun Sales by Disease Area, Sales by Products, Year on Year Comparisons Year on Year Changes (Billions of JPY) Kadcyla (4.2) +0.8, +23.5% 225.9 +4.1, +1.8% 230.0 Herceptin (16.6) +0.8, +5.1% Perjeta (5.7) +0.7, +14.0%
Slide 7: Tamiflu Sales Performance
FY2016 2Q Consolidated Financial Overview Tamiflu Sales Performance Fiscal Term Sales Forecast (Billions of JPY) FY2010.12 FY2011.12 FY2012.12 FY2013.12 FY2014.12 FY2015.12FY2016.12 Seasonal Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-D
Slide 8: Operating Profit Jan - Jun
FY2016 2Q Consolidated Financial Overview Year on Year (Core) Operating Profit Jan - Jun (Billion of JPY) 2015 2016 (Billions of JPY) Growth Gross profit Jan - Jun Jan - Jun from sales +1.5 Revenues 240.2 247.5 +7.3 -2.8 Cost of sales -116.6 -124.4 -7.8 M&D -3.3 Gross profit 123.6 123.1 -0.5 +2.8 R&
Slide 9: Financial Overview Apr – Jun
FY2016 2Q Consolidated Financial Overview Year on Year (Core) Financial Overview Apr – Jun 2015 2016 (Billions of JPY) Apr - Jun Apr - Jun Growth (Billions of JPY) vs. Revenues vs. Revenues Revenues 123.1 127.6 +4.5 +3.7% ●Decrease in gross profit from sales -2.0 Sales 119.2 121.6 +2.4 +2.0% Cost of
Slide 10: Financial Progress Jan – Jun
FY2016 2Q Consolidated Financial Overview vs. Forecast (Core) Financial Progress Jan – Jun Forecast Actual on Jan 28 2015 (Billions of JPY) 2016 2016 Progress Progress* Jan - Jun Jan - Dec Revenues 247.5 495.0 50.0% 48.2% Sales 237.2 475.4 49.9% 49.7% excl. Tamiflu 230.0 466.8 49.3% 49.1% Domestic 1
Slide 11: Sales Progress (excl. Tamiflu) Jan – Jun
FY2016 2Q Consolidated Financial Overview vs. Forecast (Core) Sales Progress (excl. Tamiflu) Jan – Jun Actual Forecast 2015 (Billions of JPY) 2016 2016 Progress Progress* Jan - Jun Jan - Dec Sales excl. Tamiflu 230.0 466.8 49.3% 49.1% Domestic 184.2 379.0 48.6% 47.4% Oncology 107.0 220.3 48.6% 47.2%
Slide 12: Impact from Foreign Exchange
FY2016 2Q Consolidated Financial Overview vs. Forecast (Core) Impact from Foreign Exchange FX impact Jan – Jun 2016 [Reference] (Billions of JPY) Historical exchange rate to the JPY (FX impact vs. Forecast) Forecast rate JPY 2016 EUR 2016 CHF 2015 EUR 2015 CHF -1.3 145 140 1EUR: 134JPY Revenues Sale
Slide 13: Balance Sheet Items
FY2016 2Q Consolidated Financial Overview vs. 2015 Year End Balance Sheet Items < Assets, Liabilities, and Net Assets > 2015 2016 ●Increase in net working capital +29.5 (Billions of JPY) Change Dec Jun Decrease in trade accounts receivable -10.0 Trade accounts receivable 134.5 124.5 - 10.0 Inventori
Slide 14: Net Cash
FY2016 2Q Consolidated Financial Overview vs. 2015 Year End Net Cash Total decrease in net (Billions of JPY) ●Operating cash flow after adjustments +53.3 working capital, etc. Operating profit +43.5 -18.5 Operating cash flow Depreciation and amortization, etc. +9.8 Total investment after adjustments
Slide 15: Free Cash Flow Jan - Jun
FY2016 2Q Consolidated Financial Overview Year on Year Free Cash Flow Jan - Jun 2015 2016 (Billions of JPY) Change Jan-Jun Jan-Jun ●Total increase (‐) / decrease in net working ‐25.5 Operating profit - IFRS basis 43.2 43.5 +0.3 capital, etc. Depreciation and impairment of Property, plant and equipme
Slide 16: Overview of Development Pipeline
Overview of Development Pipeline CHUGAI PHARMACEUTICAL CO., LTD. Associate Vice President Deputy General Manager of Research Division Minoru Watanabe July 21/22, 2016
Slide 17: Oncology Field Projects under Development
Overview of Development Pipeline Oncology Field Projects under Development (as of 21 July, 2016) Phase I Phase II Phase III Filed CKI27 / RG7304 GC33 (RG7686) AF802 (RG7853) AF802 (RG7853) (Japan / overseas) / codrituzumab / Alecensa (overseas) / Alecensa (EU) - solid tumors - HCC - NSCLC [1L] - NSC
Slide 18: Primary Field Projects under Development
Overview of Development Pipeline Primary Field Projects under Development (as of 21 July, 2016) Phase I Phase II Phase III Filed ED-71 / Edirol (China) Bone & Joint - osteoporosis EOS789 Renal - hyperphosphatemia MRA / Actemra - large-vessel vasculitis - giant cell arteritis Autoimmune (overseas) -
Slide 19: Development Status
Overview of Development Pipeline Development Status In- licensed RG435 / Avastin® Cervical cancer (additional indication) Approved in May 2016 Malignant pleural mesothelioma Started P2 in July 2016 In- licensed RG7446 / atezolizumab Small cell lung cancer Started global P3 in June 2016 Breast cancer
Slide 20: Other Progress (1/2)
Overview of Development Pipeline Other Progress (1/2) In- Marduox® Ointment house Psoriasis vulgaris (combination topical ointment) Launched in June 2016 In- CellCept® licensed Lupus Nephritis (additional indication) Approved in May 2016 (public knowledge-based application) In- ERY974 house Solid tu
Slide 21: Other Progress (2/2)
Overview of Development Pipeline Other Progress (2/2) In- CIM331 / nemolizumab house - Entered license agreement with Galderma S.A. in July 2016 In- SA237 / RG6168 house - Entered license agreement with Roche in June 2016 - Designated as an orphan drug for the expected indication of neuromyelitis op
Slide 22: Oncology Field Data Presentation / Results of Clinical Trials
Overview of Development Pipeline Oncology Field Data Presentation / Results of Clinical Trials In- AF802 / Alecensa® house Detailed data of J-ALEX study (P3 in Japan) was presented at the American Society of Clinical Oncology in June 2016 In- GA101 / obinutuzumab licensed - Showed prolonged progress
Slide 23: Primary Field Data Presentation / Results of Clinical Trials
Overview of Development Pipeline Primary Field Data Presentation / Results of Clinical Trials In- MRA / Actemra® house - Efficacy of subcutaneous injection confirmed in Dose Interval Reduction study for rheumatoid arthritis patients who inadequately respond to bi-weekly dose in May 2016 - Overseas P
Slide 24: ERY974 (TRAB): Mode of Action
Overview of Development Pipeline ERY974 (TRAB): Mode of Action What is T-cell redirecting antibody (TRAB)? • TRAB is a bispecific antibody intended to create a short bridge between CD3 on T cells and tumor antigen on tumor cells • TRAB activates T cells in a tumor antigen-dependent manner and demons
Slide 25: Combination of GC33/codrituzumab and Atezolizumab
Overview of Development Pipeline Combination of GC33/codrituzumab (Anti-GPC3 Mab) and Atezolizumab (Anti-PDL1 MAb） Codrituzumab is an IgG1 type humanized monoclonal antibody against GPC3 In the global single agent P2 study for advanced HCC conducted with Roche, codrituzumab was well tolerated bu
Slide 26: Framework of IFReC-Chugai Comprehensive Collaboration
Overview of Development Pipeline Framework of IFReC-Chugai Comprehensive Collaboration ~ New academia-industry alliance collaborating from the stage of autonomous basic research at IFReC ~ IFReC • Uncontrolled Cutting-edge Immunology Research by IFReC Researchers Autonomous Comprehensive • Periodica
Slide 27: Projected Submissions (Post PoC NMEs and Products)
Overview of Development Pipeline Projected Submissions (Post PoC NMEs and Products) Filed ALECENSA (AF802/RG7853) NME line extension NSCLC in-house [post-crizotinib] (EU) in-licensed obinutuzumab emicizumab ACTEMRA (GA101/RG7159) SA237 (ACE910/RG6013) (MRA) Neuromyelitis Optica Indolent NHL Hemophil
Slide 28: Updates on the Development Requests for Unapproved Drugs/Indications
Overview of Development Pipeline Updates on the Development Requests for Unapproved Drugs/Indications Review Committee of Development Requests for Unapproved Drugs/Indication • Ten indications (including additional dosages and administrations) of eight products from the 1st round requests have been
Slide 29: Contacts: Corporate Communications Dept.
Contacts: Corporate Communications Dept. Media Relations Group Tel: +81 (0)3-3273-0881 Fax: +81 (0)3-3281-6607 e-mail: pr@chugai-pharm.co.jp Koki Harada, Hiroshi Araki, Sachiyo Yoshimura, Mitsuka Saito Investor Relations Group Tel: +81 (0)3-3273-0554 Fax: +81 (0)3-3281-6607 e-mail: ir@chugai-pharm.c