Chugai Pharmaceutical Co., Ltd.

Ladies and gentlemen, thank you very much for attending the conference on FI2026 December 3rd quarter financial results despite your busy schedule. I am acting as moderator today. My name is Miyata from IR Group. Today we are holding this session on the Zoom webinar platform. As we present on the page 3 of the presentation material, we have set forth the agenda. Today's presentation is conducted in Japanese. However, we have a simultaneous interpretation service available into English. If you wish to listen to English translation, please select the language of your choice at the bottom hand side of your screen. We are going to take questions after the completion of the presentation. We are going to spend 30 minutes for Q&A session. During the presentation, your voices are all muted. Now, I would like to invite Okuda to present the summary of the third quarter results for FY2026. Good afternoon.

I am Osamu Okuda, President and CEO. Let me give you an overview of our third quarter results for fiscal 2026. Please turn to page 5. The third quarter growthed both revenue and profit. Sales were solid in Japan and overseas, and other revenue also grew. We are tracking well against our full-year forecast and I expect to exceed it. On the business front, development of Hem Libra auto-injector has moved forward and we now expect its launch in Japan and globally in 2027. In September, three of our researchers were awarded the Lasker Award. Going forward, we will build on our unique technologies and science to strengthen our drug discovery capabilities and drive sustainable growth.

Next, I will explain the factors behind the increase in revenue. Revenue increased by 156.5 billion yen, up 17.2%. In the domestic market, despite negative impacts from drug price revisions and the penetration of generics, Sales increased by 62.6 billion yen, driven by growth in both core and new products. In addition, front-loading shipments to pharmaceutical wholesalers as a transition major towards the operation of the next-generation core business infrastructure contributed to the increase in net sales. For overseas, despite the impact of lower export unit price, increases driven by export volumes and exchange rate in fact largely offset this, resulting in an increase of 49.6 billion yen. In particular, exports of Nemuduvia for Galderma and Alicenza for Rush increased. Other revenue increased by 44.2 billion yen due to increase in royalty income from Hime Library, NM Lubio, as well as milestone income. Domestic sales, overseas sales, and other revenue all increased, achieving top-line growth. Finally, I would like to move on to the next slide. I want to talk about receiving the Lasker Award. The creation of Hemolibrary originated from a strong desire to reduce the burden on Haemophilia A patients and their families. I would like to express my deep respect for the creativity and tireless effort of our researchers who generated the original idea of substituting Factor VIII function with a bispecific antibody and overcome many difficulties such as molecular design and manufacturing technology development to make it a reality. This journey embodies our frontier spirit of thinking for ourselves and continuously taking on unprecedented challenges. Going forward, each of our researchers will carry on this spirit to further enhance the drug discovery capabilities of the entire organization, centered on proprietary technology and science will continuously create innovative medicines and link them to sustainable growth. And this concludes my summary.