Kyowa Kirin Co., Ltd. · TSE:4151

Kyowa Kirin — FY2020 Earnings Presentation

28 slides from Kyowa Kirin's earnings presentation, 2021

  1. Slide 1: Results Presentation Fiscal 2020

    Results Presentation Fiscal 2020

  2. Slide 2: Agenda

    Agenda FY2020 Financial Review & FY2021 Plan Shareholder Return Plan R&D Review Business Topics President and Chief Executive Officer Masashi Miyamoto, Ph.D. Q&A President and Chief Executive Officer Masashi Miyamoto, Ph.D. Executive Officer, Head of Finance Motohiko Kawaguchi Executive Officer, Vic

  3. Slide 3: Forward-looking statements disclaimer

    This document contains certain forward‐looking statements relating to such items as the company’s (including its domestic and overseas subsidiaries) forecasts, targets and plans. These forward‐looking statements are based upon information available to the company at the present time and upon reasona

  4. Slide 4: FY2020 Financial Review & FY2021 Plan

    FY2020 Financial Review & FY2021 Plan © Kyowa Kirin Co., Ltd. 4

  5. Slide 5: Summary of Result & Plan

    Summary of Result & Plan ( Billion Yen / Rounded ) 2019 2020 Change 2020 2021 Change Result Result Plan Progress Plan Revenue 305.8 318.4 +12.5 313.0 351.0 +32.6 [Overseas Ratio] [39%] [48%] (+4%) [47%] 102% [54%] (+10%) Gross Profit 226.2 237.9 +11.7 236.0 270.0 +32.1 [Pross Profit Margin] [74%] [7

  6. Slide 6: FY2019 vs FY2020 -Revenue-

    FY2019 vs FY2020 ‐Revenue‐  Japan ‐14.8 +12.5 billion yen In addition to newly‐launched Crysvita, Romiplate (Additional indication), Rituximab BS (Penetration) and G‐Lasta (Expanded market) made strong growth. However, Nesp (Shift to (incl. forex effect ‐2.9) Nesp‐AG) and Patanol/Allelock (Lower po

  7. Slide 7: Revenue of Major Items (Japan)

    Revenue of Major Items (Japan) ( Billion Yen / Rounded ) 2019 2020 Change 2021 Change Item Reason Reason Result Result Plan Nesp + Nesp‐AG* 47.6 29.5 ‐18.1 (‐38%) 23.2 ‐6.3 (‐21%) Nesp‐AG launched in Aug 2019 Biosimilars’ penetration and Nesp 33.6 4.4 ‐29.3 (‐87%) and Biosimilars’ penetration 3.8 ‐0

  8. Slide 8: Revenue of Major Items (Overseas)

    Revenue of Major Items (Overseas) ( Billion Yen / Rounded ) 2019 2020 Change 2021 Change Item Reason Reason Result Result Plan Crysvita*1 32.5 54.4 +21.9 (+67%) 77.2 +22.8 (+42%) Market penetration and expanded Market penetration and market North America 25.1 42.4 +17.3 (+69%) indication (TIO in US

  9. Slide 9: FY2019 vs FY2020 -Core OP-

    FY2019 vs FY2020 ‐Core OP‐ +0.6 billion yen (incl. forex effect ‐1.3)  Gross Profit +11.7 (incl. forex effect ‐2.6) • Increased in conjunction with 12.5B yen rise in revenue. Gross profit margin made 1 point improvement from 74% to 75%.  SG&A ‐9.3 (incl. forex effect +1.0) • Increased selling and

  10. Slide 10: FY2019 vs FY2020 -Profit-

    FY2019 vs FY2020 ‐Profit‐ Profit (Jan‐Dec) ‐20.1 billion yen • Revenue +12.5 Japan ‐14.8 Overseas +29.1 Other ‐1.9 • Positive impact from tax‐effect accounting in 2019 • KHB shares sold in Apr 2019 (Gain on sale of KHB shares 29.7) • SG&A ‐9.3 • Impairment losses (6.1→2.9) +3.2 • R&D +1.2 • Business

  11. Slide 11: FY2021 Plan

    FY2021 Plan ( Billion Yen / Rounded ) 2019 2020 2021 Change Result Result Plan Revenue 305.8 318.4 351.0 +32.6 (+10%) [Overseas Ratio] [39%] [48%] [54%] Gross Profit 226.2 237.9 270.0 +32.1 (+13%) [Gross Profit Margin] [74%] [75%] [77%] SG&A 117.3 126.6 141.0 +14.4 (+11%) [S&G Ratio] [38%] [40%] [40

  12. Slide 12: FY2020 vs FY2021 (Plan) -Profit-

    FY2020 vs FY2021 (Plan) ‐Profit‐ Profit (Jan‐Dec) +3.0 billion yen • Revenue +32.6 Japan ‐4.9 (Nesp‐AG ‐5.8) Overseas +30.8 (Global 3 products +32.7) Other +6.8 (Tech‐licensing +6.7) • Impairment losses (FY2020) +2.9 • Business restructuring expenses (FY2020) +2.1 • Provision for compensation loss (

  13. Slide 13: Shareholder Return Plan

    Shareholder Return Plan © Kyowa Kirin Co., Ltd. 13

  14. Slide 14: Shareholder Return Plan

    Shareholder Return Plan  FY2020 dividend to be 44 yen, and FY2021 planned to be 46 yen  Consecutive up during FY16‐20 term aiming “Leap forward to GSP”  5yr average payout ratio is 39.7% (against the policy to make it approx. 40%) *1 Payout ratio for 2021 is the one based on the core earnings (Pr

  15. Slide 15: R&D Review

    R&D Review © Kyowa Kirin Co., Ltd. 15

  16. Slide 16: Key Development Updates in 20Q4

    Key Development Updates in 20Q4 • Initiation of the pivotal phase 2 study of ME‐401 for the treatment of indolent B‐cell non‐Hodgkin’s lymphoma in Japan (October) • Announcement of the positive phase 2b results for KW‐6356 in patients with Parkinson’s disease in Japan (October) • Presentation of pha

  17. Slide 17: Key Development Updates after December

    Key Development Updates after December • Initiation of the phase 3 study of RTA 402 for autosomal dominant polycystic kidney disease in Japan (January) • Approval of marketing authorization of KRN23 for XLH in China (January) • Marketing authorization application of KRN23 for TIO in Europe (January)

  18. Slide 18: Business Topics

    Business Topics © Kyowa Kirin Co., Ltd. 18

  19. Slide 19: Key Business Updates in 20Q4 and in January 2021

    Key Business Updates in 20Q4 and in January 2021 • Started construction on the New Quality Building (biopharmaceutical analysis facility) at the Takasaki Plant in Japan (October 2020) • Approval for Partial Change of Rituximab Biosimilar for the treatment of acquired thrombotic thrombocytopenic purp

  20. Slide 20: Appendix

    Appendix © Kyowa Kirin Co., Ltd. 20

  21. Slide 21: FOREX Information

    FOREX Information Average FOREX Rate (Yen) Currency 2019 2020 Change 2021 Results Results Plan USD/JPY 109 107 ‐2 105 GBP/JPY 140 137 ‐3 140 FY2020 FOREX Impact (YoY) (Billion yen) Currency Revenue Core OP USD/JPY ‐1.3 ‐0.7 GBP/JPY ‐1.1 ‐0.3 FY2021 Currency Fluctuation Sensitivity (Billion yen) Curr

  22. Slide 22: Key Progress in Development (2020)

    Key Progress in Development (2020)Note: Listed events were completed between January 1 , 2020 and December 31 , 2020. st st Month Generic name Code Indication Country/region Event Jan. Istradefylline KW‐6002 Parkinson’s disease EU Accepted MAA Feb. Pegfilgrastim KRN125 Chemotherapy induced febrile n

  23. Slide 23: Submission Plan of Major Pipeline

    Submission Plan of Major Pipeline As of December 31st, 2020 Generic name Code Indication Country/region 2020 H1 2020 H2 2021H1 2021H2 Brodalumab KHK4827 Psoriasis CN + Brodalumab KHK4827 Psoriasis AS +5 Brodalumab Ankylosing spondylitis, non‐ KHK4827 radiographic axial spondyloarthritis JP + Brodalu

  24. Slide 24: Development Plan of Major Pipeline

    Development Plan of Major Pipeline As of December 31st, 2020 Generic name Code Indication Country/region 2020 2021 2022 + Bardoxolone methyl RTA 402 Diabetic kidney disease JP Phase 3 Bleselumab1 ASKP1240 Recurrence of FSGS in Phase 2 de novo kidney transplant NA Entinostat KHK2375 Breast cancer JP

  25. Slide 25: Estimated Annual Incidence/Prevalence

    Estimated Annual Incidence/Prevalence Disease Country Estimated # of Incidence (i) Source /Region or Prevalence (p) ATL Japan i: 1,150 per year i: Survey and countermeasures to HTLV‐1 infection and related diseases in Japan. 2009 summary research report (Yamaguchi, 2010); p: Ministry of p: 2,000 Hea

  26. Slide 26: Crysvita - Collaboration with Ultragenyx

    Crysvita ‐ Collaboration with Ultragenyx ‐ Kyowa Kirin Group Ultragenyx  Books sales  For first 5 years, splits profits in half U.S.A  For first 5 years, splits profits in half  After 5 years, receives mid to high 20% range sales /Canada  After 5 years, pays mid to high 20% range sales royalty

  27. Slide 27: List of Acronyms

    List of Acronyms AA Aplastic Anemia AD Atopic Dermatitis AG Authorized Generic ATL Adult T‐Cell Leukemia/Lymphoma BS Biosimilar CKD Chronic Kidney Disease CKD‐MBD Chronic Kidney Disease‐Mineral and Bone Disorder DKD Diabetic Kidney Disease ENS Epidermal Nevus Syndrome FL Follicular Lymphoma FSGS Foc

  28. Slide 28: Kyowa Kirin Co., Ltd. Corporate Communications Dept., IR Group

    Kyowa Kirin Co., Ltd. Corporate Communications Dept., IR Group +81‐3‐5205‐7206 / ir@kyowakirin.com

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