Eisai Co Ltd

Thank you very much for taking your time to attend the financial results presentation meeting of ASI Company Limited. It is now time we would like to begin financial results presentation for the first quarter of fiscal 2024. This is held in a hybrid format with attendees in person in this hall and also attendees who are attending virtually. Please find a flash report and presentation materials for those of you who are attending in person. Those of you who are viewing online, please check these materials from ASI's website. I would now like to introduce the presenters today. Representative Corporate Officer COO Keisuke Naito and CFO Mitsuru Shomon. Mr. Shomon CFO, please start.

I will now explain our consolidated financial results for the first quarter of FY 2024. In the first quarter of FY 2024, despite the continued proactive investment in the growth of Lecambi, both revenue and profit increased in the pharmaceutical business, and both revenue and profit were in line with the business plan, and we could make a good start relative to the focus for the fiscal year. First, revenue was 189 billion yen, down to 96% of the previous year due to the impact of the one-time income recorded in the previous year, Below, you will find that revenue from pharmaceutical business, which is our organic business, was 186.6 billion yen, up 3% from a year earlier due to the growth of what we call three Ls, or Lembima, De Vigo, whose generic name is Lemborexant, and Dekembe. Cost of sales was 39.8 billion yen, accounting for 21%. Thank you very much. Other income was 5.4 billion yen. As a result, operating profit was 13.4 billion yen at 52% of the previous year's level, and the profit for the period was 11.5 billion yen, 55% of the previous year. But as I mentioned earlier, these were in line with the business plan, and we could make a good start for the fiscal year relative to the forecast. Next slide. This shows the breakdown of revenue migration. As shown at the top left, revenue for the first quarter of FY23 was 196.9 billion yen. In the first quarter of FY24, in the pharmaceutical business, Renbima was up 5%. 12.8 billion yen, or 18% from a year earlier. Davigo increased 2.7 billion yen, or up 29% year-on-year. And in addition, Rekembe grew 6.2 billion yen year-on-year, and by 2.2 times from the last quarter. These three yields above the growth of their pharmaceuticals drove the growth of the pharmaceutical business, offsetting decreasing factors such as the termination of the Humira marketing partnership in Japan in June last year, which is included in the bar above for products other than 3Ls, resulting in an increase of 4.8 billion yen in revenue. On the other hand, as shown in the blue box at the bottom, due to the impact of one-time income of 12.3 billion yen from the transfer of all future economic rights by the Cestron recording the previous year, revenue from other businesses decreased This slide shows the breakdown of operating profit migration as for operating profit as shown in the second lowest blue box.

A portion of the deposits ASI previously received at entering into the global strategic collaboration for Morab 202, 4.8 billion, was recorded. This was from BMS following the end of the collaboration, which was 4.8 billion yen. This was booked last year. However, as stated in the line below, revenue from one-time payment last year had a major impact. As a result, it was down by 12.6 billion to 13.4 billion, or a decline of 52% year-on-year. Despite the decline, thanks to the growth of 3Ls, we were able to proactively grow investment in Lakembi at the same time as increased segment profit of pharmaceutical business. Fiscal 24 consolidated financial forecast, which remains unchanged since May disclosure. We will continue to focus on our efforts on three Ls, including Lakembi, and maintain financial discipline to control cost and expect growth of both revenue and profit. Without falling into short-termism from mid- to long-term perspective, we will continue to proactively spend on Lakembi to sustain the enhancement of corporate value.