Kyowa Kirin : Consolidated Financial Summary (IFRS) Fiscal 2026 First Quarter

Consolidated Financial Summary (IFRS)

Fiscal 2026 First Quarter

This document is an English translation of the Japanese-language original.

SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS (IFRS)

for Three Months Ended March 31, 2026

May 7, 2026

Company Name: Kyowa Kirin Co., Ltd. Listed Exchanges: Tokyo Stock Exchange

Stock Code: 4151 President & Chief Executive Officer: Abdul Mullick Telephone: +81 3 5205 7206 Inquiries: Naohiko Kubo

Executive Officer

Director, Finance Department

URL: https://www.kyowakirin.com/index.html Scheduled start date of dividend payment: -

Appendix materials to accompany the financial report: Yes

Results presentation meeting: Yes (for institutional investors and securities analysts)

(Millions of yen rounded off)

1. Consolidated Financial Results for the Three Months Ended March 31, 2026

   1. Consolidated operating results (Percentages indicate year-on-year changes .)

      	Revenue		Core operating profit		Profit before tax		Profit		Core profit		Profit attributable to owners of parent
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	118,467	13.1	20,014	78.3	13,925	77.2	12,034	95.1	17,296	96.4	12,034	95.1
      March 31, 2025	104,725	(0.8)	11,225	(37.2)	7,860	(56.6)	6,167	(57.9)	8,807	(39.1)	6,167	(57.9)

      Total comprehensive income: Three months ended March 31, 2026: ¥16,086 million; -%

      Three months ended March 31, 2025: ¥(4,243) million; -%

      Note: Core base performance indicators have been redefined as of the fiscal year ending December 31, 2026. Core operating profit is calculated by deducting SG&A (excl. amortization of intangible assets) and R&D from gross profit, and further excluding non-recurring items as determined by the Company. Core profit is calculated by deducting income tax expenses related to the core operating profit from the core operating profit. Note that the figures for the three months ended March 31, 2025 are calculated based on the consolidated results incorporating these changes.

      	Basic earnings per share	Diluted earnings per share	Basic core earnings per share
      Three months ended March 31, 2026 March 31, 2025	Yen 22.99 11.78	Yen -11.78	Yen 33.04 16.83

      Note: Diluted earnings per share for the three months ended March 31, 2026 is not stated because there are no potential shares.

   2. Consolidated financial position

   	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
   As of	Millions of yen	Millions of yen	Millions of yen	%
   March 31, 2026	1,067,161	892,741	892,741	83.7
   December 31, 2025	1,107,860	893,332	893,332	80.6

2. Dividends

   	Dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Fiscal year ended December 31, 2025 Fiscal year ending December 31, 2026	Yen - -	Yen 30.00	Yen -	Yen 32.00	Yen 62.00
   Fiscal year ending December 31, 2026 (Forecast)		35.00	-	35.00	70.00

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

3. Consolidated Earnings Forecasts for the Fiscal Year Ending December 31, 2026 (from January 1, 2026 to December 31, 2026)

(Percentages indicate year-on-year changes .)

Note: Changes to the earnings forecasts most recently announced: Yes

* Notes

1. Significant changes in the scope of consolidation during the period under review: Yes Excluded: one company Orchard Therapeutics Limited

2. Changes in accounting policies, and accounting estimates:

   1. Changes in accounting policies required by IFRS: No

   2. Changes in accounting policies other than a. above: No

   3. Changes in accounting estimates: No

3. Number of shares issued (ordinary shares)

   1. Number of shares issued (including treasury shares)

      As of March 31, 2026	525,634,500 shares
      As of December 31, 2025	525,634,500 shares

   2. Number of treasury shares

      As of March 31, 2026	2,147,664 shares
      As of December 31, 2025	2,146,320 shares

   3. Average number of shares during the period

• Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None

• Notice regarding the appropriate use of the earnings forecasts and other special comments

The forward-looking statements, including earnings forecasts, contained in these materials are based on the information currently available to the Company and on certain assumptions deemed to be reasonable by management. As such, they do not constitute guarantees by the Company of future performance. Actual results may differ materially from these projections for a wide variety of reasons.

1. Summary of Business Performance and Financial Position 5

   1. Summary of Quarterly Consolidated Financial Position 5

   2. Summary of Quarterly Consolidated Business Performance 6

   3. Summary of Quarterly Consolidated Cash Flows 10

   4. Research and Development Activities 11

   5. Summary of Consolidated Earnings Forecasts and Other Forward-looking Statements 15

2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto 17

   1. Condensed Quarterly Consolidated Statement of Financial Position 17

   2. Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income 19

   3. Condensed Quarterly Consolidated Statement of Changes in Equity 21

   4. Condensed Quarterly Consolidated Statement of Cash Flows 23

   5. Notes to Condensed Quarterly Consolidated Financial Statements 24

Segment information. 24

Notes on going concern assumption 24

Changes in presentation 24

Cash flow information 24

1. Summary of Business Performance and Financial Position

   1. Summary of Quarterly Consolidated Financial Position

      (Billions of yen)

      	As of December 31, 2025	As of March 31, 2026	Year-on-year change
      Assets	1,107.9	1,067.2	(40.7)
      Non-current assets Current assets	614.5 493.3	607.3 459.9	(7.2) (33.5)
      Liabilities	214.5	174.4	(40.1)
      Equity	893.3	892.7	(0.6)
      Ratio of equity attributable to owners of parent to total assets (%)	80.6%	83.7%	3.1%

      • Assets as of March 31, 2026, were ¥1,067.2 billion, a decrease of ¥40.7 billion compared to the end of the previous fiscal year.

        • Non -current assets fell by ¥7.2 billion compared to the end of the previous fiscal year, to ¥607.3 billion, due mainly to decreases in intangible assets and goodwill following the transfer of the established pharmaceuticals joint venture in EMEA.

        • Current assets decreased by ¥33.5 billion compared to the end of the previous fiscal year, to ¥459.9 billion, due mainly to a decrease in trade and other receivables, despite an increase in cash and cash equivalents.

      • Liabilities as of March 31, 2026, were ¥174.4 billion, a decrease of ¥40.1 billion compared to the end of the previous fiscal year, due mainly to decreases in trade and other payables and other current liabilities.

      • Equity as of March 31, 2026, was ¥892.7 billion, a decrease of ¥0.6 billion compared to the end of the previous fiscal year, due mainly to a decrease due to the payment of dividends, despite the recording of profit attributable to owners of parent.

        As a result, the ratio of equity attributable to owners of parent to total assets as of March 31, 2026 was 83.7%, an increase of 3.1 percentage points compared to the end of the previous fiscal year.

   2. Summary of Quarterly Consolidated Business Performance

      1. Overview of results

         The Company has redefined core base performance indicators as of the fiscal year ending December 31, 2026.

         New core operating profit is calculated by deducting SG&A (excl. amortization of intangible assets) and R&D from gross profit, and further excluding non-recurring items as determined by the Company. Compared to the conventional core operating profit, this excludes amortization of intangible assets (amortization of sales rights), share of profit or loss of investments accounted for using the equity method, and non-recurring gains or losses that the Company deems should be excluded.

         New core profit is calculated by deducting income tax expenses related to the new core operating profit from the new core operating profit.

         New core earnings per share are calculated by dividing new core profit by the average number of shares during the period. For the three months ended March 31, 2026 and the three months ended March 31, 2025, the Company did not exclude any items as non-recurring gains or losses, as determined by the Company.

         Furthermore, the core operating profit, core profit, and core earnings per share for the three months ended March 31, 2025, as described below, also reflect this change in definition.

         (Billions of yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Year-on-year change	Rate of change (%)
         Revenue	104.7	118.5	13.7	13.1%
         Core operating profit	11.2	20.0	8.8	78.3%
         Profit before tax	7.9	13.9	6.1	77.2%
         Profit	6.2	12.0	5.9	95.1%
         Basic earnings per share (Yen)	11.78	22.99	11.20	95.1%
         Core profit	8.8	17.3	8.5	96.4%
         Basic core earnings per share (Yen)	16.83	33.04	16.21	96.3%

         Currency	Three months ended March 31, 2025	Three months ended March 31, 2026	Year-on-year change
         USD (USD/¥)	¥154	¥155	¥1
         GBP (GBP/¥)	¥193	¥210	¥17
         EUR (EUR/¥)	¥161	¥183	¥22

         For the three months ended March 31, 2026 (January 1, 2026 to March 31, 2026), revenue was ¥118.5 billion (up 13.1% compared to the same period of the previous fiscal year), and core operating profit was ¥20.0 billion (up 78.3%). In addition, profit was ¥12.0 billion (up 95.1%).

         • Revenue increased, driven by the growth of global strategic products, mainly in North America and EMEA, as well as increased revenue from technology out-licensing. The positive effect on revenue from foreign exchange was ¥2.6 billion.

         • Core operating profit increased due mainly to an increase in gross profit associated with increased revenue from overseas regions and technology out-licensing, in addition to a decrease in research and development expenses. The positive effect on core operating profit from foreign exchange was ¥0.9 billion.

         • Profit increased due mainly to an increase in core operating profit, despite an increase in other expenses resulting from the recording of impairment losses.

      2. Revenue by regional control function

         (Billions of yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Year-on-year change	Rate of change (%)
         Japan	27.2	26.2	(0.9)	(3.5)%
         North America	35.5	36.2	0.7	1.9%
         EMEA	19.7	23.1	3.4	17.4%
         Others	22.3	32.9	10.6	47.3%
         Total consolidated revenue	104.7	118.5	13.7	13.1%

         Note: 1. Revenue by regional control function is classified based on consolidated revenue from products of regional control functions in the One Kyowa Kirin (OKK) matrix global management structure, which combines a regional organization, a functional organization, and a product organization (product franchises).

2. EMEA consists of Europe, the Middle East, Africa, etc.

3. Others consists of revenue from technology out-licensing, the APAC revenue, hematopoietic stem cell gene therapy (revenue from Orchard Therapeutics), original equipment manufacturing, etc.

(Billions of yen)

• Despite growth in Crysvita, a treatment for FGF23-related diseases, and Duvroq, a treatment for renal anemia, revenue in Japan was down year on year due mainly to a decline in revenue from G-Lasta, an agent for decreasing the incidence of febrile neutropenia, the impact of the transfer of manufacturing and marketing approval for Depakene and other long-listed products, and the impact of the reductions in drug price standards implemented in April 2025.

  • Revenue from Crysvita, a treatment for FGF23-related diseases, has been growing steadily since its launch in 2019. Furthermore, November 2025 saw the launch of the Crysvita Prefilled Syringe Formulation, a syringe-type formulation designed to simplify self-administration at home.

  • Revenue from PHOZEVEL, a treatment for hyperphosphatemia, has been growing steadily since its launch in 2024.

  • Revenue from Duvroq, a treatment for renal anemia, has been growing steadily since its launch in 2020.

  • Revenue from G-Lasta, an agent for decreasing the incidence of febrile neutropenia, decreased due to the impact of biosimilar products and the impact of the reductions in drug price standards.

• Revenue in North America increased year on year due to the growth of global strategic products.

  • Revenue from Crysvita, a treatment for X-linked hypophosphatemia, has been growing steadily since its launch in 2018. For the three months ended March 31, 2026, revenue based on shipments from the Company was down year on year due to the impact of progress in working through channel inventories. However, demand based on prescriptions for patients remained steady.

  • Revenue from Poteligeo, an anticancer agent, has been growing since its launch in 2018.

  • KOMZIFTI (generic name: ziftomenib) was approved by the US Food and Drug Administration (FDA) in November 2025 and launched in the United States for adult patients with relapsed or refractory acute myeloid leukemia (AML) with a sensitive NPM1 mutation and no satisfactory alternative treatment options. Profits from KOMZIFTI will be shared 50:50 in the United States in accordance with the strategic collaboration agreement with Kura Oncology. The Company recognizes net profit or loss after profit sharing as revenue when positive and as selling, general and administrative expenses when negative. For the three months ended March 31, 2026, net profit or loss was negative and is therefore recorded as selling, general, and administrative expenses.

• Revenue in EMEA increased year on year.

  • Revenue from Crysvita, a treatment for X-linked hypophosphatemia, has been growing since its launch in 2018, as the number of countries where it has been released and its indications have expanded.

  • Revenue from Poteligeo, an anticancer agent, has been growing as the number of countries where it has been released has been increasing since its launch in 2020.

  • As a result of Kyowa Kirin International plc transferring the residual assets related to the established medicines business to Grünenthal in February 2026, royalties decreased in line with sales.

• Revenue from Others increased year on year.

  • As the number of patients eligible for treatment with Libmeldy/Lenmeldy for metachromatic leukodystrophy (MLD) is extremely limited, the number of patients receiving prescriptions tends to fluctuate from quarter to quarter. For the three months ended March 31, 2026, revenue decreased due to a year-on-year decrease in the number of patients receiving prescriptions. In addition, in December 2025, metachromatic leukodystrophy (MLD) was added to the Recommended Uniform Screening Panel (RUSP) in the United States.

  • Revenue from technology out-licensing increased due to an increase in sales royalties from AstraZeneca in relation to benralizumab, as well as the recognition as revenue of the full amount of contract liabilities associated with the partnership agreement with Amgen for KHK4083/AMG 451 (rocatinlimab) following the termination of that agreement.

1. Core operating profit

   • Core operating profit increased year on year due to an increase in gross profit and a decrease in research and development expenses, despite an increase in selling, general and administrative expenses.

1. Summary of Quarterly Consolidated Cash Flows

   (Billions of yen)

   	Three months ended March 31, 2025	Three months ended March 31, 2026	Year-on-year change	Rate of change (%)
   Net cash provided by (used in) operating activities	7.4	56.3	48.9	660.5%
   Net cash provided by (used in) investing activities	(21.5)	(8.6)	12.9	(60.0)%
   Net cash provided by (used in) financing activities	(16.5)	(17.9)	(1.4)	8.5%
   Cash and cash equivalents at beginning of period	244.7	218.8	(25.9)	(10.6)%
   Cash and cash equivalents at end of period	214.4	249.5	35.2	16.4%

   • Cash and cash equivalents as of March 31, 2026 were ¥249.5 billion, an increase of ¥30.8 billion compared with the balance of ¥218.8 billion as of December 31, 2025.

     The main contributing factors affecting cash flow during the three months ended March 31, 2026 were as follows:

   • Net cash provided by operating activities was ¥56.3 billion, compared with net cash provided by operating activities of ¥7.4 billion in the same period of the previous fiscal year. The major inflows were profit before tax of ¥13.9 billion, a decrease in trade receivables of ¥59.2 billion, and depreciation and amortization of

     ¥7.6 billion. Major outflows were a decrease in contract liabilities of ¥10.0 billion and income taxes refund (paid) of ¥5.6 billion.

   • Net cash used in investing activities was ¥8.6 billion, compared with net cash used in investing activities of ¥21.5 billion in the same period of the previous fiscal year. A major outflow was purchase of property, plant and equipment of ¥12.3 billion. A major inflow was ¥5.4 billion in proceeds from sale of investments in subsidiaries following the transfer of the established pharmaceuticals joint venture in EMEA.

   • Net cash used in financing activities was ¥17.9 billion, compared with net cash used in financing activities of ¥16.5 billion in the same period of the previous fiscal year. A major outflow was dividends paid of ¥16.8 billion.

2. Research and Development Activities

   The Group continuously and actively invests management resources in research and development activities. In accordance with the Story for Vision 2030 formulated in 2024, in research, the Group has designated bone and mineral, intractable hematological diseases/hemato oncology, and rare diseases as focus disease areas. The Group aims to continually create life-changing value by seeking to concentrate resources in areas where it can leverage its expertise, while strengthening research into innovative modalities, including advanced antibody technologies and hematopoietic stem cell gene therapy. To achieve this, the Group is working to sustainably improve drug discovery in line with its strategy by strengthening in-house research capabilities under an R&D structure that cuts across Japanese and overseas locations, and by promoting open innovation with external partners. In development, the Group aims to maximize product value by utilizing strategic collaboration with external partners in addition to self-driven global expansion, while steadily delivering pharmaceuticals to patients who need them. The Group will steadily deliver the life-changing value thus created to patients and seek to achieve sustainable growth.

   For the three months ended March 31, 2026, the Group’s research and development expenses totaled ¥27.2 billion.

   As of March 31, 2026

   Code Name, Generic Name	Indication	Development status
   ziftomenib	Acute Myeloid Leukemia (AML); combination, newly diagnosed	Ph I clinical study: in progress
   		Ph III clinical study: in progress
   OTL-203	Mucopolysaccharidosis type IH (Hurler syndrome)	Pivotal study (Equivalent to Ph III study): in progress
   KK8398, infigratinib	Achondroplasia	Ph III clinical study: in progress
   	Hypochondroplasia	Ph III clinical study: preparation underway
   KHK4951, tivozanib	Neovascular Age-related Macular Degeneration (nAMD)	Ph II clinical study: in progress
   	Diabetic Macular Edema (DME)	Ph II clinical study: in progress
   OTL-201	Mucopolysaccharidosis type IIIA (Sanfilippo syndrome type A)	PoC study (Equivalent to Ph I/II study): in progress
   KK4277	Systemic Erythematosus (SLE)/Cutaneous Lupus Erythematosus (CLE)	Ph I clinical study: in progress
   KK2260	Advanced or metastatic solid tumors	Ph I clinical study: in progress
   KK2269	Advanced or metastatic solid tumors	Ph I clinical study: in progress
   KK2845	Acute Myeloid Leukemia (AML)	Ph I clinical study: in progress
   KK8123	X-linked Hypophosphatemia (XLH)	Ph I clinical study: in progress
   KK3910	Essential Hypertension	Ph I clinical study: in progress
   OTL-200, atidarsagene autotemcel	Early-onset Metachromatic Leukodystrophy (MLD)	Clinical trial: Preparation underway NDA: Filed
   KK2223	Cutaneous T-Cell Lymphoma (CTCL) Peripheral T-cell Lymphoma (PTCL)	Ph I clinical study: in preparation

   • Ziftomenib (Product name in US: KOMZIFTI) is an oral menin inhibitor in development by Kura Oncology, Inc. for the treatment of genetically defined AML patients with high unmet need. In November 2024, Kura Oncology and Kyowa Kirin entered into a global strategic collaboration to develop and commercialize ziftomenib in acute leukemias. Under the terms of the agreement, the companies will jointly develop and commercialize ziftomenib. Kura Oncology, Inc. will lead development, regulatory and commercial

     strategy in the U.S. Outside the U.S., Kyowa Kirin will lead development, regulatory and commercial strategy. In November 2025, the U.S. Food and Drug Administration (FDA) granted full approval of ziftomenib for the treatment of adult patients with relapsed or refractory (R/R) AML with an NPM1 mutation. Ziftomenib is now being evaluated in multiple ongoing clinical trials aimed at expanding its use across broader AML patient populations. These include: the Phase III KOMET-017 trial of ziftomenib in combination with intensive or non-intensive chemotherapy in newly diagnosed AML; the Phase I KOMET-007 trial of ziftomenib in combination with intensive or non-intensive chemotherapy in frontline NPM1-m/KMT2A-r AML, as well as in combination with intensive chemotherapy and quizartinib in frontline NPM1-m/FLT3-m AML; and the Phase I KOMET-008 trial of ziftomenib in combination with gilteritinib in patients with R/R NPM1-m/FLT3-m AML.

   • OTL-203 is an investigational HSC gene therapy in development for the treatment of mucopolysaccharidosis type IH (Hurler syndrome). Orchard Therapeutics is currently implementing a registrational study (equivalent to a Phase III clinical study) of OTL-203 as a therapy to potentially correct the underlying cause of Hurler syndrome.

   • KK8398 (infigratinib) is a small-molecular FGFR3 inhibitor, which has been developed for bone diseases by QED Therapeutics, wholly owned by BridgeBio. In February 2024, a partnership wherein QED Therapeutics, grants Kyowa Kirin an exclusive license to develop and commercialize infigratinib for achondroplasia, hypochondroplasia, and other skeletal dysplasias in Japan. A Phase III clinical trial for achondroplasia is ongoing in Japan. The Company is currently preparing for Phase III clinical trial for hypochondroplasia in Japan.

   • Tivozanib, the active ingredient of KHK4951 is a small-molecule vascular endothelial growth factor receptor (VEGFR) -1, -2, and -3 tyrosine kinase inhibitor (TKI) discovered and developed by Kyowa Kirin. KHK4951 is a novel nano-crystalized tivozanib eye drops designed to deliver it efficiently to the posterior ocular tissues and has the potential to provide a novel non-invasive treatment option for patients with neovascular age-related macular degeneration (nAMD) and diabetic macular edema (DME). Phase II clinical studies are ongoing.

   • OTL-201 is an investigational HSC gene therapy in development for the treatment of mucopolysaccharidosis type IIIA (Sanfilippo syndrome). A proof-of-concept (Equivalent to Phase I / II study) is ongoing.

   • KK4277 is an optimized antibody based on antibodies licensed from SBI Biotech. It has been enhanced with antibody-dependent cell-mediated cytotoxicity (ADCC) activity using our POTELLIGENT technology. Phase I clinical study for the treatment of systemic lupus erythematosus and cutaneous lupus erythematosus has been conducted.

   • KK2260 is an EGFR-TfR1 bispecific antibody developed using the Company’s proprietary bispecific antibody technology REGULGENT. It is designed as an antibody that achieves selective iron depletion in cancer cells, and in non-clinical trials it showed high efficacy and tolerability. Phase I clinical trial is ongoing.

   • KK2269 is an EpCAM-CD40 bispecific antibody developed using the Company’s proprietary bispecific antibody technology REGULGENT. It is designed as an antibody that activates only antigen-presenting cells near the tumor by cross-linking EpCAM, which is highly expressed in various tumors, with CD40 on antigen-presenting cells. In non-clinical trials, it was found to exhibit the therapeutic effects of anti-tumor immunity while suppressing systemic side effects. Phase I clinical trial is ongoing.

   • KK2845 is the Company’s first antibody-drug conjugate (ADC). The target molecule is TIM-3, Phase I clinical trial for acute myeloid leukemia (AML) is ongoing.

   • KK8123 is a human antibody targeting FGF23. Phase I study for XLH is ongoing.

   • KK3910 is an antibody developed by Kyowa Kirin. Phase I clinical trial for healthy adults and essential hypertension is ongoing.

   • OTL-200 (atidarsagene autotemcel, Product name in US: Lenmeldy, Product name in Europe: Libmeldy) is an investigational HSC gene therapy aimed at correcting the underlying genetic cause of Metachromatic Leukodystrophy (MLD). OTL-200 received designation as an orphan regenerative medicine product for early-onset MLD in Japan in October 2025. The NDA is filed in Japan in March 2026 and the Company is preparing a clinical trial in Japan.

   • KK2223 is an in-house-discovered development candidate for which the Company is preparing a Phase I clinical trial for cutaneous T-cell lymphoma (CTCL) and peripheral T-cell lymphoma (PTCL).

   R&D pipeline

   Note 1: Because the Company discontinued clinical trials of KHK4083/AMG 451 (rocatinlimab) for moderate to severe atopic dermatitis, prurigo nodularis, and moderate to severe asthma, the relevant development information has been removed from this table.

   2: Our main progress from March 31, 2026 is as follows.

   On April 24, 2026, it was announced that dosing of ziftomenib had commenced for the first patient in the Phase II trial in Japan targeting relapsed or refractory NPM1-mutant AML.

   Major Applications and Approvals

   Code Name, Generic Name, Product Name	Indication	Application/ Under Review	Countries/ Regions Received Approval in 2026
   OTL-200 (atidarsagene autotemcel, product name in US: Lenmeldy; product name in Europe: Libmeldy)	Early-onset Metachromatic Leukodystrophy (MLD)	Application filed in Japan	—

3. Summary of Consolidated Earnings Forecasts and Other Forward-looking Statements

Given the consolidated results for the three months ended March 31, 2026 and the situation described below, the Company has revised its full-year consolidated earnings forecasts.

As a result of the decision made on March 3, 2026 to discontinue the rocatinlimab clinical trial program, the related selling, general and administrative expenses and research and development expenses will no longer be incurred going forward, which is expected to have a positive impact on core operating profit. On the other hand, other expenses will increase due to the recording of closing costs arising from the discontinuation of the rocatinlimab clinical trial program, among other factors. Consequently, core operating profit is expected to exceed the previously announced forecast, while profit is expected to remain unchanged from the previously announced forecast.

The differences from the full-year consolidated earnings forecasts for the fiscal year ending December 31, 2026 announced on February 9, 2026 are as follows.

(Full year)

1. Condensed Quarterly Consolidated Statement of Financial Position

Assets

Non-current assets

As of December 31, 2025

(Millions of yen)

As of March 31, 2026

1. Condensed Quarterly Consolidated Statement of Financial Position (continued)

   As of

   (Millions of yen)

   As of

   Equity

   December 31, 2025

   March 31, 2026

   Share capital	26,745	26,745
   Capital surplus	427,733	427,740
   Treasury shares	(5,585)	(5,516)
   Retained earnings	406,321	401,603
   Other components of equity	38,117	42,170
   Total equity attributable to owners of parent	893,332	892,741
   Total equity	893,332	892,741

   Liabilities

   Non-current liabilities

   Liabilities from application of equity method	2,190	2,577
   Retirement benefit liability	280	304
   Provisions	4,414	4,368
   Deferred tax liabilities	387	392
   Other financial liabilities	22,283	21,724
   Other non-current liabilities	3,896	410
   Total non-current liabilities	33,450	29,776
   Current liabilities
   Trade and other payables	125,041	107,586
   Provisions	3,938	3,047
   Other financial liabilities	8,836	5,637
   Income taxes payable	9,668	6,749
   Other current liabilities	33,595	21,625
   Total current liabilities	181,078	144,644
   Total liabilities	214,528	174,419
   Total equity and liabilities	1,107,860	1,067,161

2. Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income

   Condensed Quarterly Consolidated Statement of Profit or Loss

   January 1, 2025 to

   March 31, 2025

   (Millions of yen)

   January 1, 2026 to

   March 31, 2026

   Revenue 104,725 118,467

   Cost of sales (24,588) (30,220)

   Gross profit 80,138 88,247

   Selling, general and administrative expenses (40,355) (41,071)

   Research and development expenses (28,558) (27,162)

   Amortization of intangible assets (1,691) (2,781)

   Share of profit (loss) of investments accounted for using equity method	(914)	1,000
   Other income	397	385
   Other expenses	(1,588)	(8,100)
   Finance income	571	5,677
   Finance costs	(141)	(2,270)
   Profit before tax	7,860	13,925
   Income tax expense	(1,693)	(1,892)
   Profit	6,167	12,034

   Profit attributable to

   Owners of parent 6,167 12,034

   Earnings per share

   Basic earnings per share (Yen)	11.78	22.99
   Diluted earnings per share (Yen)	11.78	-

   Note: Diluted earnings per share for the three months ended March 31, 2026 is not stated because there are no potential shares.

   Condensed Quarterly Consolidated Statement of Comprehensive Income

   January 1, 2025 to

   March 31, 2025

   (Millions of yen)

   January 1, 2026 to

   March 31, 2026

   Profit 6,167 12,034

   Other comprehensive income

   Items that will not be reclassified to profit or loss

   Financial assets measured at fair value through other comprehensive income

   Share of other comprehensive income of investments accounted for using equity method

   Total of items that will not be reclassified to profit or loss

   (248) 28

   – 1

   (248) 30

   Items that may be reclassified to profit or loss

   Exchange differences on translation of foreign operations

   Share of other comprehensive income of investments accounted for using equity method

   Total of items that may be reclassified to profit or loss

   (10,061) 3,785

   (101) 238

   (10,162) 4,023

   Other comprehensive income (10,410) 4,052

   Comprehensive income (4,243) 16,086

   Comprehensive income attributable to

   Owners of parent (4,243) 16,086

3. Condensed Quarterly Consolidated Statement of Changes in Equity

January 1, 2025 to March 31, 2025

(Millions of yen)

1. Condensed Quarterly Consolidated Statement of Changes in Equity (continued)

   January 1, 2026 to March 31, 2026

   (Millions of yen)

   	Equity attributable to owners of parent
   	Share capital	Capital surplus	Treasury shares	Retained earnings	Other components of equity
   					Share acquisition rights	Exchange differences on translation of foreign operations
   Balance at January 1, 2026	26,745	427,733	(5,585)	406,321	-	37,693
   Profit	-	-	-	12,034	-	-
   Other comprehensive income	-	-	-	-	-	4,023
   Total comprehensive income	-	-	-	12,034	-	4,023
   Dividends of surplus	-	-	-	(16,752)	-	-
   Purchase of treasury shares	-	-	(3)	-	-	-
   Disposal of treasury shares	-	-	-	-	-	-
   Share-based remuneration transactions	-	6	72	-	-	-
   Total transactions with owners	-	6	69	(16,752)	-	-
   Balance at March 31, 2026	26,745	427,740	(5,516)	401,603	-	41,716

   	Equity attributable to owners of parent			Total equity
   	Other components of equity		Total
   	Financial assets measured at fair value through other comprehensive income	Total
   Balance at January 1, 2026	424	38,117	893,332	893,332
   Profit	-	-	12,034	12,034
   Other comprehensive income	30	4,052	4,052	4,052
   Total comprehensive income	30	4,052	16,086	16,086
   Dividends of surplus	-	-	(16,752)	(16,752)
   Purchase of treasury shares	-	-	(3)	(3)
   Disposal of treasury shares	-	-	-	-
   Share-based remuneration transactions	-	-	78	78
   Total transactions with owners	-	-	(16,677)	(16,677)
   Balance at March 31, 2026	453	42,170	892,741	892,741

2. Condensed Quarterly Consolidated Statement of Cash Flows

   		(Millions of yen)
   	January 1, 2025 to	January 1, 2026 to
   	March 31, 2025	March 31, 2026
   Cash flows from operating activities
   Profit before tax	7,860	13,925
   Depreciation and amortization	6,104	7,647
   Impairment losses (reversal of impairment losses)	-	4,949
   Increase (decrease) in provisions	(615)	(949)
   Share of loss (profit) of investments accounted for using equity method	914	(1,000)
   Foreign exchange loss (gain)	(702)	467
   Decrease (increase) in inventories	(435)	2,280
   Decrease (increase) in trade receivables	17,200	59,209
   Increase (decrease) in trade payables	(5,259)	4,626
   Increase (decrease) in contract liabilities	(2,018)	(9,981)
   Income taxes refund (paid)	560	(5,601)
   Other	(16,202)	(19,238)
   Net cash provided by (used in) operating activities	7,407	56,334
   Cash flows from investing activities
   Purchase of property, plant and equipment	(12,229)	(12,281)
   Proceeds from sale of property, plant and equipment	3	63
   Purchase of intangible assets	(1,527)	(1,707)
   Purchase of investment securities	(180)	(180)
   Proceeds from sale of investment securities	47	15
   Proceeds from sale of investments in subsidiaries resulting in change in scope of consolidation	-	5,361
   Transfers to escrow account	(7,700)	-
   Other	40	104
   Net cash provided by (used in) investing activities	(21,547)	(8,625)
   Cash flows from financing activities
   Repayments of lease liabilities	(1,308)	(1,138)
   Purchase of treasury shares	(2)	(3)
   Dividends paid	(15,177)	(16,752)
   Other	0	-
   Net cash provided by (used in) financing activities	(16,487)	(17,893)
   Effect of exchange rate changes on cash and cash equivalents	316	936
   Net increase (decrease) in cash and cash equivalents	(30,311)	30,752
   Cash and cash equivalents at beginning of period	244,681	218,769
   Cash and cash equivalents at end of period	214,370	249,521

3. Notes to Condensed Quarterly Consolidated Financial Statements

Segment information

The Group omitted information by reportable segment as the Group consists of only the one reportable segment, which is the Pharmaceuticals business.

Notes on going concern assumption

No applicable items.

Changes in presentation

Condensed Quarterly Consolidated Statement of Profit or Loss

In the three months ended March 31, 2025, amortization of sales rights, which had been included in “Selling, general and administrative expenses,” has been presented separately as “Amortization of intangible assets” due to an increase in its monetary materiality. To reflect this change in the presentation method, the Group has reclassified the amount in its Condensed Quarterly Consolidated Financial Statements for the three months ended March 31, 2025.

As a result, negative ¥42,045 million in “Selling, general and administrative expenses” that was shown in the Condensed Quarterly Consolidated Statement of Profit or Loss for the three months ended March 31, 2025, was reclassified as negative ¥40,355 million in “Selling, general and administrative expenses” and negative ¥1,691 million in “Amortization of intangible assets.”

Condensed Quarterly Consolidated Statement of Cash Flows

In the three months ended March 31, 2025, “Increase (decrease) in provisions for bonuses” and “Increase (decrease) in accrued royalties payable,” which had been presented separately, were included in “Other” under “Cash flows from operating activities” due to their nature as temporary items. Additionally, “Income taxes paid” and “Income taxes refund,” which had been presented separately under “Cash flows from operating activities,” has been changed to “Income taxes refund (paid)” to better reflect the actual situation. To reflect this change in the presentation method, the Group has reclassified the amounts in its Condensed Quarterly Consolidated Financial Statements for the three months ended March 31, 2025.

As a result, in the Condensed Quarterly Consolidated Statement of Cash Flows for the three months ended March 31, 2025, negative ¥3,024 million presented as “Increase (decrease) in provisions for bonuses,” negative ¥6,819 million presented as “Increase (decrease) in accrued royalties payable,” and negative

¥6,359 million presented as “Other” were reclassified as “Other” of negative ¥16,202 million, and negative

¥581 million presented as “Income taxes paid” and ¥1,141 million presented as “Income taxes refund” in “Cash flows from operating activities” were reclassified as “Income taxes refund (paid)” of ¥560 million.

Cash flow information

Negative ¥7,700 million in “Transfers to escrow account” during the three months ended March 31, 2025 is a deposit made to the escrow account (account with restrictions on deposits and withdrawals) as part of the construction funds for a new biopharmaceutical drug substance manufacturing building.