Consolidated Financial Results for the Six Months Period of Fiscal 2025 (Six Month Period Ended September 30, 2025)

November 10, 2025

Company name: KAKEN PHARMACEUTICAL CO., LTD.

Stock exchange listing: Tokyo Stock Exchange Securities code number: 4521

URL: https://www.kaken.co.jp/english/

Representative: Hiroyuki Horiuchi, President and Representative Director

Contact: Yasuhiko Kondo, General Manager of Accounting & Finance Department Telephone: +81-3-5977-5007

Scheduled date of semi-annual securities report submission: November 13, 2025 Scheduled date of dividend payment commencement: November 28, 2025 Supplementary materials for financial results: Yes

Financial results briefing: Yes (for institutional investors and analysts)

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six-Month Period of Fiscal 2025 (April 1, 2025 to September 30, 2025)
   1. Consolidated Operating Results (cumulative) (Percentage indicates year-on-year change)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of the parent
      	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)
      Six-Month period of Fiscal 2025	39,356	(23.4)	203	(99.0)	607	(96.9)	992	(93.0)
      Six-Month period of Fiscal 2024	51,372	42.0	19,579	255.2	19,823	246.4	14,286	251.2

      Note:

      Comprehensive income:

      Six-Month period of Fiscal 2025: ¥ 379 million [(97.2)%]

      Six-Month period of Fiscal 2024: ¥ 13,469 million [131.7%]

      	Basic earnings per share	Diluted earnings per share
      	(Yen)	(Yen)
      Six-Month period of Fiscal 2025	26.16	-
      Six-Month period of Fiscal 2024	377.23	-

   2. Consolidated Financial Position

   	Total assets	Net assets	Equity-to-asset ratio
   	(Million yen)	(Million yen)	(%)
   As of September 30, 2025	177,279	147,802	83.4
   As of March 31, 2025	190,422	152,634	80.2

   Reference:

   Equity:

   As of September 30, 2025: ¥ 147,802 million

   As of March 31, 2025: ¥ 152,634 million

2. Cash Dividends

   	Annual dividends per share
   	1st quarter	2nd quarter	3rd quarter	Year-end	Total
   	(Yen)	(Yen)	(Yen)	(Yen)	(Yen)
   Year ended March 31, 2025	-	115.00	-	75.00	190.00
   Year ending March 31, 2026	-	95.00
   Year ending March 31, 2026 (Forecast)			-	95.00	190.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

   • The dividends per share for the 2nd quarter of the year ended March 31, 2025 consist of an ordinary dividend of ¥75.00 and a bonus dividend of ¥40.00.

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

   (Percentage indicates year-on-year change)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of the parent		Basic earnings per share
   	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)	(Million yen)	(%)	(Yen)
   Year ending March 31, 2026	86,300	(8.2)	2,100	(90.0)	2,800	(86.8)	2,300	(83.5)	60.74

   Note: Revisions to the financial forecast most recently announced: None

   • Notes

1. Significant changes in the scope of consolidation during the period: None

2. Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies other than 1): None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common stock)

Note: The number of treasury stock at the end of the period includes the Company's shares held by the "Board Benefit Trust (BBT)" and the "Employee Stock Ownership Plan (J-ESOP)" (199,700 shares as of September 30, 2025 and 93,600 shares as of March 31, 2025). The Company's shares held by the BBT and J-ESOP are included in the number of treasury stock to be deducted in the calculation of the average number of shares during the period (155,287 shares as of September 30, 2025 and 34,671 shares as of September 30, 2024).

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit corporation.

• Explanation of proper use of earnings forecasts, and other special matters:

(Caution regarding forward-looking statements)

The performance forecasts and other descriptions on future events presented in this material are based on information currently available and certain assumptions considered to be reasonable. The actual performance may differ from these forecasts.

How to review the supplementary material to the financial results reports:

It has been posted on the Company's web site, along with the financial results reports.

1. Semi-annual consolidated balance sheets

   Fiscal 2024

   (As of March 31, 2025)

   (Millions of yen) Six-Month period of

   Fiscal 2025

   (As of September 30, 2025)

   Assets

   45,116

   54,093

   Cash and deposits

   Current assets

   Notes and accounts receivable - trade, and contract assets

   21,178 21,762

   	Marketable securities	15,992	11,988
   	Merchandise and finished goods	8,805	7,826
   	Work in process	2,311	2,603
   	Raw materials and supplies	7,904	7,727
   	Other	1,091	1,732
   	Allowance for doubtful accounts	(0)	-
   	Total current assets	111,377	98,757
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net		15,530	16,420
   Other, net		12,098	12,168
   Total property, plant and equipment		27,629	28,589
   Intangible assets
   In-process research and development		4,400	4,400
   Goodwill		14,035	13,420
   Other		854	959
   Total intangible assets		19,289	18,780
   Investments and other assets
   Investment securities		18,875	17,921
   Other		13,251	13,230
   Total investments and other assets		32,126	31,152
   Total non-current assets		79,045	78,521
   Total assets		190,422	177,279

   Fiscal 2024

   (As of March 31, 2025)

   (Millions of yen) Six-Month period of

   Fiscal 2025

   (As of September 30, 2025)

   Liabilities

   Current liabilities

   5,824

   8,186

   Notes and accounts payable - trade

   Electronically recorded obligations - operating	136	81
   Short-term bank loans	3,850	3,850
   Income taxes payable	7,285	629
   Provision for bonuses	1,154	927
   Other	9,741	11,118
   Total current liabilities	30,354	22,431
   Non-current liabilities
   Provision for share-based remuneration	163	141
   Net defined benefit liability	4,954	4,969
   Deferred tax liabilities	1,514	1,514
   Other	800	418
   Total non-current liabilities	7,433	7,045
   Total liabilities	37,787	29,476
   Net assets
   Shareholders' equity
   Common stock	23,853	23,853
   Capital surplus	12,932	11,406
   Retained earnings	135,242	128,090
   Treasury stock	(28,233)	(23,775)
   Total shareholders' equity	143,794	139,575
   Accumulated other comprehensive income
   Net unrealized holding gain on securities	6,257	6,270
   Foreign currency translation adjustment	(57)	(615)
   Remeasurements of defined benefit plans	2,640	2,572
   Total accumulated other comprehensive income	8,840	8,227
   Total net assets	152,634	147,802
   Total liabilities and net assets	190,422	177,279

2. Semi-annual consolidated statements of income and comprehensive income (Semi-annual consolidated statements of income)

   Six-Month period of Fiscal 2024

   (April 1, 2024 - September 30, 2024)

   (Millions of yen) Six-Month period of

   Fiscal 2025

   (April 1, 2025 - September 30, 2025)

   Net sales	51,372	39,356
   Cost of sales	17,269	17,776
   Gross profit	34,103	21,580
   Selling, general and administrative expenses
   Salaries	2,804	2,905
   Bonuses and provision for bonuses	539	705
   Retirement benefit expenses	82	88
   Research and development expenses	5,973	11,672
   Other	5,123	6,005
   Total selling, general and administrative expenses	14,523	21,377
   Operating profit	19,579	203
   Other income
   Interest income	15	117
   Dividends income	288	320
   Foreign exchange gains	-	14
   Other	37	19
   Total other income	341	471
   Other expenses
   Interest expenses	12	21
   Foreign exchange losses	54	-
   Loss on investments in investment partnership	16	38
   Other	15	7
   Total other expenses	97	67
   Ordinary profit	19,823	607
   Extraordinary income
   Gain on sales of investment securities	-	862
   Other	0	1
   Total extraordinary income	0	863
   Extraordinary losses
   Loss on retirement of non-current assets	41	64
   Loss on valuation of investment securities	546	2
   Other	0	6
   Total extraordinary losses	588	73
   Profit before income taxes	19,235	1,397
   Income taxes	4,949	404
   Profit	14,286	992
   Profit attributable to owners of parent	14,286	992

   (Semi-annual consolidated statements of comprehensive income)

   Six-Month period of Fiscal 2024

   (April 1, 2024 - September 30, 2024)

   (Millions of yen) Six-Month period of

   Fiscal 2025

   (April 1, 2025 - September 30, 2025)

   Profit	14,286 992
   Other comprehensive income
   Net unrealized holding gain on securities	(775) 12
   Foreign currency translation adjustment	- (557)
   Remeasurements of defined benefit plans	(40) (68)
   Total other comprehensive income	(816) (613)
   Comprehensive income	13,469 379
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	13,469 379

3. Semi-annual consolidated statements of cash flows

Six-Month period of Fiscal 2024

(Millions of yen) Six-Month period of

Fiscal 2025

(April 1, 2024 - September 30, 2024) (April 1, 2025 - September 30, 2025)

Cash flows from operating activities

Profit before income taxes 19,235 1,397

Increase (decrease) in net defined benefit asset and

liability

(279)

(229)

Amortization of goodwill 39 197

Interest and dividends income (303) (438)

Loss (gain) on investments in investment partnerships

16 38

Loss (gain) on valuation of investment securities 546 2

Decrease (increase) in notes and accounts receivable-trade

2,692 (616)

Other, net 1,110 (987)

Increase (decrease) in trade payables (1,082) (2,412)

Interest and dividends income received 301 438

Subtotal 23,600 (1,711)

Income taxes (paid) refund 43 (6,770)

Interest expenses paid (12) (21)

Cash flows from investing activities

Net cash provided by (used in) operating activities 23,932 (8,064)

Purchase of property, plant and equipment (1,961) (863)

Purchase of investment securities (200) -

Net cash provided by (used in) investing activities (2,432) 429

Other, net (209) (154)

Cash flows from financing activities

Cash dividends paid (2,840) (2,882)

Proceeds from disposal of treasury stock 2 -

Effect of exchange rate change on cash and cash

equivalents

-

(120)

Net cash provided by (used in) financing activities (2,839) (5,225)

Cash and cash equivalents at beginning of period 65,325 70,085

Net increase (decrease) in cash and cash equivalents 18,661 (12,980)

Cash and cash equivalents at end of period 83,987 57,105