Chugai Pharmaceutical : Q1 Results (Jan-Mar 2026)

About this update from Chugai Pharmaceutical Co., Ltd.

NOTICE: For the convenience of capital market participants, Chugai makes efforts to provide English translations of the information disclosed in Japanese, provided that the Japanese original prevails over its English translation in the case of any discrepancy found between documentation. CONSOLIDATED FINANCIAL STATEMENTS (IFRS) (Non-Audited) (for the three months ended March 31, 2026) Name of Company: Chugai Pharmaceutical Co., Ltd. April 24, 2026 Stock Listing: Tokyo Stock Exchange Security Code No.: 4519 (URL https://www.chugai-pharm.co.jp/english ) Representative: Osamu Okuda, Representative Director, President & CEO Contact: Kae Miyata, Head of Corporate Communications Department Phone: +81-(0)3-3273-0554 Date on which Dividend Payments to Commence: － Supplementary Materials Prepared for the Financial Statements: Yes Presentation Held to Explain the Financial Statements: Yes (for institutional investors, securities analysts and the media) (Note: Amounts of less than one million yen are rounded.) Consolidated results for the three months ended March 31, 2026 Consolidated operating results Revenue % change Operating profit % change Net income % change FY2026 Q1 FY2025 Q1 ¥321,747 million ¥288,459 million 11.5 21.7 ¥158,765 million ¥136,651 million 16.2 36.8 ¥115,418 million ¥97,234 million 18.7 30.7 Net income attributable to Chugai shareholders % change Total comprehensive income % change FY2026 Q1 ¥115,418 million 18.7 ¥123,723 million 24.6 FY2025 Q1 ¥97,234 million 30.7 ¥99,271 million 20.9 Earnings per share (Basic) Earnings per share (Diluted) FY2026 Q1 ¥70.13 ¥70.13 FY2025 Q1 ¥59.09 ¥59.08 Note: Percentages represent changes compared with the same period of the previous fiscal year. Consolidated results (balance sheet) Total assets Total equity Equity attributable to Chugai shareholders Ratio of equity attributable to Chugai shareholders As of March 31, 2026 ¥2,265,101 million ¥1,907,715 million ¥1,907,715 million 84.2% As of Dec. 31, 2025 ¥2,468,595 million ¥2,025,732 million ¥2,025,732 million 82.1% Dividends Annual dividends per share End of first quarter End of second quarter End of third quarter End of fiscal year Total FY ended Dec. 2025 FY ending Dec. 2026 - - ¥125.00 - ¥147.00 ¥272.00 FY ending Dec. 2026 (Forecast) ¥66.00 - ¥66.00 ¥132.00 Notes: 1. Whether the most recent dividend forecast has been revised: No Breakdown of dividends per share at the end of the second quarter of FY ending Dec. 2025: regular dividend, ¥50.00; special dividend, ¥75.00 (Special dividend for the company's 100th Anniversary) Breakdown of dividends per share at the end of FY ending Dec. 2025: regular dividend, ¥72.00; special dividend, ¥75.00 (Special dividend for the company's 100th Anniversary) Breakdown of annual dividends per share for FY ending Dec. 2025: regular dividend, ¥122.00; special dividend, ¥150.00 (Special dividend for the company's 100th Anniversary) Consolidated forecasts for the year ending December 31, 2026 Revenue % change Core operating profit % change Core net income % change FY2026 Q1 (Results) ¥321,747 million 23.9 ¥163,270 million 24.4 ¥118,550 million 24.4 FY ending Dec. 2026 (Forecast) ¥1,345,000 million 6.9 ¥670,000 million 7.5 ¥485,000 million 7.5 Core earnings per share % change Core dividend payout ratio % FY2026 Q1 (Results) ¥72.03 24.4 - FY ending Dec. 2026 (Forecast) ¥295.00 7.7 44.7 Notes: 1. Except for Core dividend payout ratio, percentages represent changes compared with the same period of the previous fiscal year for the forecasts, and the percentage of forecast levels that have been achieved to date for the results. Whether the most recent forecasts for consolidated figures have been revised: No The figures for the consolidated forecasts and actuals are calculated based on Core basis indicators established by Chugai and used on a consistent basis. Core EPS is diluted earnings per share attributable to Chugai shareholders on a Core basis. Others Material changes in scope of consolidation during the period: None Changes in accounting policies and changes in accounting estimates Changes in accounting policies required by IFRS: None Changes in accounting policies other than those in (a) above: None Changes in accounting estimates: None As of Mar. 31, 2026 1,679,057,667 As of Dec. 31, 2025 1,679,057,667 As of Mar. 31, 2026 33,294,611 As of Dec. 31, 2025 33,344,248 FY2026 Q1 1,645,739,779 FY2025 Q1 1,645,555,845 Number of shares issued (common stock): Number of shares issued at the end of the period (including treasury stock) Number of treasury stock at the end of the period Average number of shares issued during the period (three months) Notes: Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None Explanation of the appropriate use of performance forecasts and other related items Portions of this report that refer to performance forecasts or any other future events are believed to be reasonable under information available at the time of the forecasts. Actual results may differ from these forecasts due to potential risks and uncertainties. The forecast which is published for shareholders and investors is based on the internal management indicator Core basis under International Financial Reporting Standards ("IFRS"). Core results are the results after adjusting non-recurring items recognized by Chugai to IFRS results. Chugai's recognition of non-recurring items may differ from that of Roche due to the difference in the scale of operations, the scope of business and other factors. Core results are used by Chugai as an indicator for managing internal business performance, explaining the status of recurring profits both internally and externally, and as the basis for payment-by-results such as shareholder returns. The difference between IFRS results and Core results will be explained at each event and presentation for the period. For the specifics of the forecasts, please refer to "Consolidated forecasts and other forward-looking statements" on page 6 of the attachment. Chugai is scheduled to hold a presentation of the financial statements as noted below. The presentation materials will be posted on Chugai's website at the time of the third quarter results announcement. Presentation for institutional investors, securities analysts and the media (Online conference with simultaneous interpretation): Friday, April 24, 2026 (Japan time). English translation of the scripts including Q&A will be posted on the website within two business days. Index of the Attachment Qualitative Information 2 Consolidated operating results 2 Consolidated financial position 5 Consolidated forecasts and other forward-looking statements 6 Significant agreements .......................................................................................................................... 6 Interim Condensed Consolidated Financial Statements and Major Notes 7 Interim condensed consolidated income statement and interim condensed consolidated statement of comprehensive income 7 Interim condensed consolidated balance sheet 9 Interim condensed consolidated statement of cash flows 10 Interim condensed consolidated statement of changes in equity 11 Notes regarding the going concern assumption 12 Notes to the interim condensed consolidated financial statements 12 Qualitative Information Consolidated operating results in billions of yen Three months ended March 31, 2026 Three months ended March 31, 2025 % change Core results Revenue 321.7 288.5 +11.5 Sales 291.6 259.7 +12.3 Other revenue 30.2 28.7 +5.2 Cost of sales (92.3) (87.5) +5.5 Gross profit 229.5 201.0 +14.2 Research and development (41.9) (40.7) +2.9 Selling, general and administration (24.9) (21.0) +18.6 Other operating income (expense) 0.6 0.3 +100.0 Operating profit 163.3 139.5 +17.1 Net income 118.6 99.2 +19.6 IFRS results Revenue 321.7 288.5 +11.5 Operating profit 158.8 136.7 +16.2 Net income 115.4 97.2 +18.7 Consolidated financial highlights (IFRS results) Revenue for the three months under review was ¥321.7 billion (an increase of 11.5% year on year), operating profit for the three months under review was ¥158.8 billion (an increase of 16.2% year on year), and net income for the three months under review was ¥115.4 billion (an increase of 18.7% year on year). These results include non-Core items, which are excluded from the Core results that Chugai adopts to manage recurring business activities, such as amortization of intangible assets of ¥0.5 billion and business rebuilding expenses of ¥4.0 billion. Consolidated financial highlights (Core results) Revenue for the three months under review was ¥321.7 billion (an increase of 11.5% year on year), due to increases in sales and other revenue. Of revenue, sales were ¥291.6 billion (an increase of 12.3% year on year). Domestic sales exceeded the levels of the same period of the previous fiscal year due to the increase in the sales of the mainstay products Vabysmo, Hemlibra, Polivy, and Phesgo, and the new product Lunsumio, despite the effects of the NHI drug price revisions and the market penetration of generic drugs. Overseas sales increased compared to the same period of the previous fiscal year, due to significant increases in the export of Hemlibra to Roche and the export of NEMLUVIO to Galderma, the company to which the drug was out-licensed. Other revenue was ¥30.2 billion (an increase of 5.2% year on year). It exceeded the levels of the same period of the previous fiscal year mainly due to the increase in royalty income related to NEMLUVIO, despite the decrease in one-time income. Furthermore, cost to sales ratio was 31.7%, a 2.0 percentage point improvement year on year, reflecting a change in product mix, the effects of foreign exchange, and other factors. As a result, gross profit amounted to ¥229.5 billion (an increase of 14.2% year on year). Research and development expenses were ¥41.9 billion (an increase of 2.9% year on year), exceeding the levels of the same period of the previous fiscal year due to increases associated with investments into drug discovery/early development and the progress of development projects and other factors. Selling, general and administration expenses were ¥24.9 billion (an increase of 18.6% year on year), increasing compared to the same period of the previous fiscal year primarily due to one-off increase in various expenses and due to increase in corporate enterprise tax (factor-based tax). Other operating income (expense) was income of ¥0.6 billion (¥0.3 billion of income for the same period of the previous fiscal year). As a result, core operating profit was ¥163.3 billion (an increase of 17.1% year on year) and core net income was ¥118.6 billion (an increase of 19.6% year on year). Note: Core results Chugai discloses its results on a Core basis from 2013 in conjunction with its transition to IFRS. Core results are the results after adjusting non-recurring items recognized by Chugai to IFRS results. Chugai's recognition of non-recurring items may differ from that of Roche due to the difference in the scale of operations, the scope of business and other factors. Core results are used by Chugai as an internal performance indicator, for explaining the status of recurring profits both internally and externally, and as the basis for payment-by-results. For further details regarding the adjustment to IFRS results, please refer to Supplementary Materials Consolidated Financial Statements for the three months ended March 31, 2026 (IFRS), dated April 24, 2026, on page 1, entitled "Reconciliation of IFRS results to Core results." Sales breakdown in billions of yen Three months ended March 31, 2026 Three months ended March 31, 2025 % change Sales 291.6 259.7 +12.3 Domestic sales 111.4 103.0 +8.2 Oncology 55.7 53.1 +4.9 Specialty 55.7 49.9 +11.6 Overseas sales 180.1 156.7 +14.9 Domestic sales Domestic sales were ¥111.4 billion (an increase of 8.2% year on year) due to the sales growth of mainstay products and new products, despite the effects of the NHI drug price revisions and the market penetration of generic drugs. Oncology products sales were ¥55.7 billion (an increase of 4.9% year on year). Sales of the mainstay product Avastin (an anti-VEGF humanized monoclonal antibody, anti-cancer agent) decreased due to the effects of the NHI drug price revisions and the market penetration of generic drugs. Meanwhile, sales of mainstay products Polivy (an antimicrotubule binding anti-CD79b monoclonal antibody, anti-cancer agent) and Phesgo (antineoplastic agent/anti-HER2 humanized monoclonal antibody/hyaluronan-degradation enzyme combination drug) performed favorably, and the new product Lunsumio (antineoplastic agent/anti-CD20/CD3 humanized bispecific monoclonal antibody) penetrated the market. Specialty products sales were ¥55.7 billion (an increase of 11.6% year on year). This was due to the significant increase in sales of the mainstay product Vabysmo (an ophthalmic VEGF/Ang-2 inhibitor, anti-VEGF/anti-Ang-2 humanized bispecific monoclonal antibody), in addition to the strong performance of Hemlibra (a blood coagulation factor VIII substitute/anti-coagulation factor IXa/X humanized bispecific monoclonal antibody). Overseas sales Overseas sales amounted to ¥180.1 billion (an increase of 14.9% year on year). The export of Hemlibra to Roche and the export of NEMLUVIO (a humanized anti-human IL-31 receptor A monoclonal antibody) to Galderma, both increased significantly. R&D activities R&D expenses on a Core basis for the first three months under review totaled ¥41.9 billion (an increase of 2.9% year on year), and the ratio of R&D expenses to revenue was 13.0%. Progress made in R&D activities for the first three months under review was as follows. Oncology We obtained approval for an antineoplastic agent/humanized anti-CD20/CD3 bispecific antibody RG7828 (Product name: Lunsumio) for an additional indication of the treatment of relapsed or refractory large B-cell lymphoma, in combination with Polivy in March 2026. We filed for an antineoplastic agent/humanized anti-PD-L1 monoclonal antibody RG7446 (Product name: Tecentriq) for an additional indication of adjuvant therapy for MRD-positive bladder cancer in January 2026. We also decided to discontinue the development for RG7446 for hepatocellular carcinoma (HCC) (2nd Line) (combination with lenvatinib or sorafenib), in consideration of the result of global Phase III study IMbrave251. We started global Phase III study for a KRAS G12C inhibitor RG6330 for the treatment of non-small cell lung cancer (NSCLC) (1st Line) in January 2026. We started global Phase III study for a PI3Kα inhibitor RG6114 for the treatment of PIK3CA -mutated breast cancer (endocrine-sensitive) (1st Line) (combination with CDK4/6 inhibitor and letrozole) in February 2026. We also started global Phase III study for RG6114 for the treatment of PIK3CA -mutated, HER2-positive breast cancer (1st Line) (combination with Phesgo) in March 2026. Neuroscience We launched a viral vector product RG6356/SRP-9001 (Product name: Elevidys) as a regenerative medicine product for the treatment of Duchenne muscular dystrophy (DMD) (ambulatory patients with DMD who do not have a deletion of any portion or the entirety of exon 8 and/or exon 9 in the DMD gene, are negative for anti-AAVrh74 antibodies, and are 3 years to less than 8 years of age) in Japan in February 2026. We also decided to discontinue the development for an anti-latent myostatin sweeping antibody GYM329/RG6237 for spinal muscular atrophy (SMA) and facioscapulohumeral muscular dystrophy (FSHD), in consideration of the results of global Phase II/III study MANATEE, and global Phase II study MANOEUVRE, respectively. We decided to remove a pH-dependent binding humanized anti-IL-6 receptor monoclonal antibody SA237/RG6168 (Product name: Enspryng) for the treatment of DMD from the pipeline following the decision made by Roche to discontinue the Phase II study due to strategic reasons. Consolidated financial position Assets, liabilities and net assets in billions of yen March 31, 2026 December 31, 2025 Change in amount Net operating assets (NOA) and Net assets Net working capital 472.6 527.0 (54.4) Long-term net operating assets 593.1 583.3 9.8 Net operating assets (NOA) 1,065.7 1,110.3 (44.6) Net cash 850.1 979.7 (129.6) Other non-operating assets - net (8.0) (64.3) 56.3 Total net assets 1,907.7 2,025.7 (118.0) Consolidated balance sheet (IFRS basis) Total assets 2,265.1 2,468.6 (203.5) Total liabilities (357.4) (442.9) 85.5 Total net assets 1,907.7 2,025.7 (118.0) Net operating assets (NOA) as of March 31, 2026 were ¥1,065.7 billion, a decrease of ¥44.6 billion since the end of the previous fiscal year. Of NOA, net working capital was ¥472.6 billion, a decrease of ¥54.4 billion from the end of the previous fiscal year, due mainly to a decrease in other accounts receivable for royalties as a result of settlement, despite an increase in inventories. Long-term net operating assets increased by ¥9.8 billion to ¥593.1 billion since the end of the previous fiscal year, mainly due to an increase in intangible assets. As indicated in "Cash flows" on the next page, net cash, including marketable securities and interest-bearing debt, decreased by ¥129.6 billion since the end of the previous fiscal year to ¥850.1 billion. Other non-operating assets -net increased by ¥56.3 billion since the end of the previous fiscal year to ¥(8.0) billion due mainly to a decrease in current income tax liabilities. As a consequence, total net assets were ¥1,907.7 billion (a decrease of ¥118.0 billion since the end of the previous fiscal year). Note: Net operating assets (NOA) and Net assets The consolidated balance sheet has been prepared in accordance with International Accounting Standards (IAS) No. 1, "Presentation of Financial Statements." On the other hand, Net operating assets (NOA) and Net assets are a reconfiguration of the consolidated balance sheet as internal indicators and are identical to the indicators disclosed by Roche. Furthermore, no items from Net operating assets (NOA) and Net assets have been excluded, as the Core results concept only applies to the income statement. For further details, please refer to the Supplementary Materials on page 8, entitled "Financial position." Note: Net operating assets (NOA) Net operating assets allow for an assessment of the Group's operating performance of the business independently from financing and tax activities. Net operating assets are calculated as net working capital, long-term net operating assets that includes property, plant and equipment, intangible assets etc. minus provisions. Cash flows in billions of yen Three months ended March 31, 2026 Three months ended March 31, 2025 % change Free cash flows Operating profit - IFRS basis 158.8 136.7 +16.2 Operating profit, net of operating cash adjustments 169.6 146.2 +16.0 Operating free cash flows 203.3 162.4 +25.2 Free cash flows 112.2 42.7 +162.8 Net change in net cash (129.6) (51.7) +150.7 Consolidated statement of cash flows (IFRS basis) Cash flows from operating activities 122.0 66.7 +82.9 Cash flows from investing activities 113.8 (86.9) - Cash flows from financing activities (244.6) (95.4) +156.4 Net change in cash and cash equivalents (8.6) (116.8) (92.6) Cash and cash equivalents at March 31 418.0 423.4 (1.3) Operating profit, net of operating cash adjustments, amounted to ¥169.6 billion (an increase of 16.0% year on year), which was calculated by adjusting for depreciation and other items that are included in operating profit but are not accompanied by cash inflows or outflows and all inflows and outflows related to NOA that are not accompanied by profit and loss. Operating free cash flows for the three months under review amounted to a net inflow of ¥203.3 billion (an increase of 25.2% year on year) mainly due to a decrease in net working capital, etc. of ¥56.7 billion, despite deducting an expenditure of ¥12.7 billion for the purchase of property, plant and equipment from operating profit, net of operating cash adjustments. Factors accounting for the decrease in net working capital, etc. are as indicated in "Assets, liabilities and net assets" on the previous page. Free cash flows were a net cash inflow of ¥112.2 billion (an increase of 162.8% year on year) due mainly to income taxes paid of ¥89.3 billion from operating free cash flows. The net change in net cash calculated by adjusting for dividends paid of ¥242.0 billion, etc. from free cash flows was a decrease of ¥129.6 billion. The net change in cash and cash equivalents, excluding changes in marketable securities and interest-bearing debt, was a net cash outflow of ¥8.6 billion. The cash and cash equivalents balance at the end of this period amounted to ¥418.0 billion. Note: Free cash flows (FCF) The consolidated statement of cash flows has been prepared in accordance with International Accounting Standard (IAS) No. 7, "Statement of Cash Flows." FCF is a reconfiguration of the consolidated statement of cash flows as internal indicators and is identical to the indicators disclosed by Roche. Furthermore, no items from FCF have been excluded, as the Core results concept only applies to the income statement. For further details, please refer to the Supplementary Materials on page 9, entitled "Cash flows." Consolidated forecasts and other forward-looking statements Chugai has not made any changes in its forecast of consolidated results for the fiscal year ending December 31, 2026 since the announcement regarding the forecast issued on January 29, 2026. Significant agreements No significant agreements were decided on or concluded during the first quarter of the fiscal year 2026. Note: In "1. Qualitative Information," amounts less than ¥0.1 billion have been rounded to the nearest ¥0.1 billion. Figures for changes in amounts and percentages have been calculated using data denominated in ¥0.1 billion units. Interim Condensed Consolidated Financial Statements and Major Notes Interim condensed consolidated income statement and interim condensed consolidated statement of comprehensive income Interim condensed consolidated income statement in millions of yen Three months ended March 31 2026 2025 Revenue 321,747 288,459 Sales 291,577 259,722 Other revenue 30,170 28,737 Cost of sales (92,790) (87,823) Gross profit 228,957 200,636 Research and development (41,887) (40,927) Selling, general and administration (28,901) (23,237) Other operating income (expense) 596 178 Operating profit 158,765 136,651 Financing costs 42 3 Other financial income (expense) 1,390 (825) Profit before taxes 160,197 135,829 Income taxes (44,779) (38,595) Net income 115,418 97,234 Attributable to: Chugai shareholders 115,418 97,234 Earnings per share Basic (yen) 70.13 59.09 Diluted (yen) 70.13 59.08 Interim condensed consolidated statement of comprehensive income in millions of yen Three months ended March 31 2026 2025 Net income recognized in income statement 115,418 97,234 Other comprehensive income Remeasurements of defined benefit plans - (12) Financial assets measured at fair value through OCI (126) 20 Items that will never be reclassified to the income statement (126) 9 Financial assets measured at fair value through OCI 4 (2) Cash flow hedges 8,171 3,660 Currency translation of foreign operations 254 (1,629) Items that are or may be reclassified to the income statement 8,430 2,028 Other comprehensive income, net of tax 8,305 2,037 Total comprehensive income 123,723 99,271 Attributable to: Chugai shareholders 123,723 99,271 (2) Interim condensed consolidated balance sheet in millions of yen March 31, 2026 December 31, 2025 Assets Non-current assets: Property, plant and equipment 459,516 456,578 Right-of-use assets 22,163 22,903 Intangible assets 58,495 54,539 Deferred tax assets 89,422 88,304 Defined benefit plan assets 26,472 26,249 Other non-current assets 69,592 79,263 Total non-current assets 725,660 727,837 Current assets: Inventories 288,289 276,848 Accounts receivable 352,747 442,876 Current income tax assets 194 236 Marketable securities 432,111 553,094 Cash and cash equivalents 417,984 426,602 Other current assets 48,117 41,104 Total current assets 1,539,441 1,740,758 Total assets 2,265,101 2,468,595 Liabilities Non-current liabilities: Deferred tax liabilities (3,434) (4,015) Defined benefit plan liabilities (4,724) (4,245) Long-term provisions (4,020) (4,610) Other non-current liabilities (17,506) (18,914) Total non-current liabilities (29,684) (31,785) Current liabilities: Current income tax liabilities (51,675) (91,004) Short-term provisions (3,371) (3,356) Accounts payable (107,524) (127,247) Other current liabilities (165,132) (189,469) Total current liabilities (327,702) (411,077) Total liabilities (357,386) (442,862) Total net assets 1,907,715 2,025,732 Equity: Capital and reserves attributable to Chugai shareholders 1,907,715 2,025,732 Total equity 1,907,715 2,025,732 Total liabilities and equity 2,265,101 2,468,595 Interim condensed consolidated statement of cash flows in millions of yen Three months ended March 31 2026 2025 Cash flows from operating activities Cash generated from operations 170,935 147,337 (Increase) decrease in working capital 56,658 40,756 Payments made for defined benefit plans (525) (607) Utilization of provisions (599) (310) Other operating cash flows (15,125) (13,583) Cash flows from operating activities, before income taxes paid 211,343 173,593 Income taxes paid (89,303) (106,915) Total cash flows from operating activities 122,040 66,677 Cash flows from investing activities Purchase of property, plant and equipment (12,661) (22,035) Purchase of intangible assets (7,864) (469) Disposal of property, plant and equipment (36) (66) Disposal of intangible assets - 28 Interest and dividends received 1,507 715 Purchases of marketable securities (260,468) (320,000) Sales of marketable securities 381,447 255,000 Purchases of investment securities (5) (60) Sales of investment securities 11,852 - Other investing cash flows 24 - Total cash flows from investing activities Cash flows from financing activities Interest paid 113,796 (144) (86,886) (52) Lease liabilities paid (2,512) (2,033) Dividends paid to Chugai shareholders (241,990) (93,408) Exercise of equity compensation plans 62 115 (Increase) decrease in own equity instruments (2) (1) Total cash flows from financing activities (244,584) (95,378) Net effect of currency translation on cash and cash equivalents 130 (1,196) Increase (decrease) in cash and cash equivalents (8,618) (116,783) Cash and cash equivalents at January 1 426,602 540,202 Cash and cash equivalents at March 31 417,984 423,419 Interim condensed consolidated statement of changes in equity in millions of yen For the three months ended March 31, 2025 Attributable to Chugai shareholders Share capital Capital surplus Retained earnings Other reserves Subtotal Total equity As of January 1, 2025 73,202 69,896 1,746,934 11,468 1,901,499 1,901,499 Net income recognized in income statement - - 97,234 - 97,234 97,234 Financial assets measured at fair value through OCI - - - 18 18 18 Cash flow hedges - - - 3,660 3,660 3,660 Currency translation of foreign operations - - - (1,629) (1,629) (1,629) Remeasurements of defined benefit plans - - (12) - (12) (12) Total comprehensive income - - 97,222 2,048 99,271 99,271 Dividends - - (93,795) - (93,795) (93,795) Equity compensation plans - 13 - - 13 13 Own equity instruments - 233 - - 233 233 As of March 31, 2025 73,202 70,142 1,750,362 13,516 1,907,222 1,907,222 For the three months ended March 31, 2026 Share capital Capital surplus Retained earnings Other reserves Subtotal Total equity As of January 1, 2026 73,202 70,515 1,890,042 (8,026) 2,025,732 2,025,732 Net income recognized in income statement - - 115,418 - 115,418 115,418 Financial assets measured at fair value through OCI - - - (121) (121) (121) Cash flow hedges - - - 8,171 8,171 8,171 Currency translation of foreign operations - - - 254 254 254 Total comprehensive income - - 115,418 8,305 123,723 123,723 Dividends - - (241,920) - (241,920) (241,920) Equity compensation plans - 95 - - 95 95 Own equity instruments - 85 - - 85 85 Transfer from other reserves to retained earnings - - 14 (14) - - As of March 31, 2026 73,202 70,694 1,763,554 265 1,907,715 1,907,715 Attributable to Chugai shareholders Notes regarding the going concern assumption None Notes to the interim condensed consolidated financial statements General accounting principles and significant accounting policies Basis of preparation of the consolidated financial statements These financial statements are the interim condensed consolidated financial statements ("Interim Financial Statements") of Chugai, a company registered in Japan, and its subsidiaries ("the Group"). The common stock of Chugai is publicly traded and listed on the Tokyo Stock Exchange under the stock code "TSE: 4519." The Interim Financial Statements were approved by the Board of Directors on April 24, 2026. Roche Holding Ltd. is a public company registered in Switzerland and the parent company of the Roche Group, which discloses its results in accordance with IFRS. The shareholding percentage of Roche Holding Ltd. in Chugai is 59.89% (61.10% of the total number of shares issued excluding treasury stock). The Group became principal members of the Roche Group after entering into a strategic alliance in October 2002. The Group has prepared the Interim Financial Statements in accordance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements, etc. of Tokyo Stock Exchange, Inc. However, in accordance with Article 5, Paragraph 5 of the Standards for the Preparation of Quarterly Financial Statements, etc., some disclosures in International Accounting Standard (IAS) No. 34 "Interim Financial Reporting" have been omitted. The Interim Financial Statements should be used with the consolidated financial statements for the year ended December 31, 2025 as they do not include all the information as required for the consolidated financial statements for the full fiscal year. The Interim Financial Statements are presented in Japanese yen, which is Chugai's functional currency and amounts are rounded to the nearest ¥1 million. They have been prepared using the historical cost convention except for items that are required to be accounted for at fair value. Key accounting judgments, estimates and assumptions The preparation of the Interim Financial Statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of revenue, expenses, assets, liabilities, and contingent amounts. Actual outcomes could differ from those management estimates. The estimates and underlying assumptions are reviewed on an on-going basis and are based on historical experience and various other factors. Revisions to estimates are recognized in the period in which the estimate is revised. The information for judgment, estimates, and assumptions that have a material impact on the amount recognized in the Interim Condensed Financial Statements of the Group is principally the same for the prior fiscal year. However, should the situation persist, it could result in such risks as major revisions of the carrying amounts of assets and liabilities in the following fiscal year and beyond. Changes in accounting policies The Group applies the same significant accounting policies that were applied to the Interim Financial Statements of the previous fiscal year. Although minor changes have been made to certain accounting standards, they do not have a material impact on the Group's overall results and financial position. Operating segment information The Group has a single business of pharmaceuticals and does not have multiple operating segments. The Group's pharmaceuticals business consists of research and development of new prescription medicines and subsequent manufacturing, marketing and distribution activities. These functional activities are integrated and managed effectively. Information on revenue by geographical area in millions of yen Three months ended March 31 2026 2025 Sales Other revenue Sales Other revenue Japan 111,429 166 102,990 360 Overseas 180,148 30,005 156,732 28,377 of which Switzerland 171,783 27,639 148,541 28,255 Total 291,577 30,170 259,722 28,737 Information on revenue by major customers in millions of yen Three months ended March 31 2026 2025 F. Hoffmann-La Roche Ltd. 185,712 170,405 Alfresa Holdings Corporation and its affiliates 37,250 30,114 Related parties Dividends The dividends distributed to Roche by Chugai in respect to its holdings of Chugai shares totaled ¥147,834 million as of March 31, 2026 (2025: ¥183,032 million). Material transactions and balances with related parties Transactions with F. Hoffmann-La Roche in millions of yen Three months ended March 31 2026 2025 Revenue 185,712 170,405 Purchases 66,401 36,073 Balances with F. Hoffmann-La Roche in millions of yen March 31, 2026 December 31, 2025 Accounts receivable 205,648 247,468 Trade accounts payable 64,659 35,177

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