Nxera Pharma Co Ltd

Now, it is time. From now, we would like to start Nexera Pharma's FY2025 for your financial results briefing. Thank you very much for joining despite your very busy schedule. I will be serving as the MC today, CFO Nomura. Today, we have Mr. Chris Cargill, CEO, COO, President of Nexera Pharma Japan, Toshihiro Maeda, CSO, President of Nexera Pharma UK, Dr. Patrick Forsh attending the meeting. We have simultaneous interpretation as usual. Please click the globe icon and select the language, Japanese or English, and you will be able to hear the interpreter's voice. If not, you will be able to hear the original voice of the speakers. In the first half, I will be presenting and there will be q a session in the second half of the session we have the materials shared on the screen we are also uploading on the website if you would like to have the materials from investors our library presentation and please access to the materials In the latter half of the session in Q&A, institutional investors, analysts, and media people, you will be able to ask questions by raising hand. The others will be able to submit questions from Q&A button. You will be able to submit questions at any time, and we will like to respond to questions as long as the time permits. Without further ado, we would like to move on to the presentation. I will talk about the financial result. After that, Chris will talk about the operating highlights. Mr. Maeda will talk about the Japan commercial business update. Patrick will provide update on UK R&D progress. And lastly, Chris will talk about FY2026 objectives and beyond. Now, please turn to page 5 of the materials.

This is page 5 of the materials.

Here, summary of FY2025 four-year financial results along with the past trend by revenue segment is indicated. The revenues against the 28.8 billion last year, this was 29.6 billion slight increase. Milestone revenue decreased from 11.2 billion to 9.6 billion. 7.9 billion, and the product sales grew from 14 billion to 17.8 billion. I will talk about the details later on, but especially QBVIC product supply and royalty became the drivers of the product sales. The milestone is declining, the blue is declining, but in 2024, New York crime had a 35 million close to 5 billion yen milestone revenue, but primarily low milestone in 2025. In terms of a profit, core OP was minus 400 million. RFR basis was minus 8.4 billion yen. On year-on-year basis, SG&A was compressed by 4 to 5 percent, about 800 million yen. Clinical study development and investment in obesity The expenditure in R&D increased by 2.7 billion. There were impairment in part of the assets primarily due to incur of 1.8 billion yen, one of costs related to business rebuilding and structural reform. It is not included here, but the operating profit was 20.05 billion deficit and There was the cost related to the change of the terms of the corporate bond of 4.6 billion yen in IFRS basis. In slide 6, this is by business domain and core operating profit and accounting operating profits are shown as the breakdown. On the far left in blue is the platform business. This is so-called bio-venture type business model. The red one to the right is a commercial business, so-called formal type business model. Platform profit is largely dependent on milestone for partners. Self-control is unfortunately difficult, but on the other hand, commercial, by growing that, we are targeting for the stabilization of the revenue. This is the company policy. As explained, in platform business, large scale milestone was lacking. There was increase of R&D expenses. As a result, the core operating profit turned deficit. But last November, as we announced individually, we are rebuilding business for turning profitable. Commercial business is growing steadily on core basis. It became, in black, 6.5 billion, targeting for stable growth in next fiscal year. As for the forecast, later on, Chris will cover this in FY2026 objectives. Please move on to slide 7. As I mentioned about the R&D expenses, I would like to talk about the difference on year-on-year basis in detail. Last November, we showed this slide in R&D Day. The trend has not changed significantly, but the development products in the clinical stage last year reached the peak of expenditure, and we announced in August last year, but there was significant increase in investment for obesity area, and there was exchange rate fluctuation compared to the assumption. So this is very brief, but I would like to conclude the explanation on the financial results. Next, Chris will talk about the business highlights. Chris, over to you.