Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. 1 November 10, 2025 Consolidated Financial Results for the Six-Months Period of Fiscal 2025 (Six-Month Period Ended September 30, 2025) [JGAAP] 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: Y es Financial results briefing: Y es (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 –
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2 (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 end ed March 31, 202 5 consist of an ordinary dividend of ¥75.00 and a bonus dividend of ¥40.00. 3. Consolidated Financial Forecast for Fiscal Y ear 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
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3 * 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) 1) Number of issued shares at the end of the period (including treasury stock) As of September 30, 2025 44,139,730 shares As of March 31, 2025 45,939,730 shares 2) Number of treasury stock at the end of the period As of September 30, 2025 6,271,242 shares As of March 31, 2025 7,535,854 shares 3) Average number of shares during the period Six-Month period of Fiscal 2025 37,954,597 shares Six-Month period of Fiscal 2024 37,871,082 shares 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.
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4 2. Consolidated Financial Results for Six-Month Period of Fiscal 2025 (1) Semi-annual consolidated balance sheets (Millions of yen) Fiscal 2024 (As of March 31, 2025) Six-Month period of Fiscal 2025 (As of September 30, 2025) Assets Current assets Cash and deposits 54,093 45,116 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
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5 (Millions of yen) Fiscal 2024 (As of March 31, 2025) Six-Month period of Fiscal 2025 (As of September 30, 2025) Liabilities Current liabilities Notes and accounts payable - trade 8,186 5,824 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
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6 (2) Semi-annual consolidated statements of income and comprehensive income (Semi-annual consolidated statements of income) (Millions of yen) Six-Month period of Fiscal 2024 (April 1, 2024 – September 30, 2024) 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
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7 (Semi-annual consolidated statements of comprehensive income) (Millions of yen) Six-Month period of Fiscal 2024 (April 1, 2024 – September 30, 2024) 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
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8 (3) Semi-annual consolidated statements of cash flows (Millions of yen) Six-Month period of Fiscal 2024 (April 1, 2024 – September 30, 2024) Six-Month period of Fiscal 2025 (April 1, 2025 – September 30, 2025) Cash flows from operating activities Profit before income taxes 19,235 1,397 Depreciation 1,265 1,273 Amortization of goodwill 39 197 Increase (decrease) in net defined benefit asset and liability (279) (229) Interest and dividends income (303) (438) Interest expenses 12 21 Loss (gain) on investments in investment partnerships 16 38 Loss (gain) on sale of investment securities – (862) Loss (gain) on valuation of investment securities 546 2 Loss on retirement of non-current assets 41 64 Decrease (increase) in notes and accounts receivable-trade 2,692 (616) Decrease (increase) in inventories 304 839 Increase (decrease) in trade payables (1,082) (2,412) Other, net 1,110 (987) Subtotal 23,600 (1,711) Interest and dividends income received 301 438 Interest expenses paid (12) (21) Income taxes (paid) refund 43 (6,770) Net cash provided by (used in) operating activities 23,932 (8,064) Cash flows from investing activities Purchase of property, plant and equipment (1,961) (863) Purchase of intangible assets (61) (345) Purchase of investment securities (200) – Proceeds from sales of investment securities – 1,793 Other, net (209) (154) Net cash provided by (used in) investing activities (2,432) 429 Cash flows from financing activities Purchase of treasury stock (0) (2,342) Proceeds from disposal of treasury stock 2 – Cash dividends paid (2,840) (2,882) Net cash provided by (used in) financing activities (2,839) (5,225) Effect of exchange rate change on cash and cash equivalents – (120) Net increase (decrease) in cash and cash equivalents 18,661 (12,980) Cash and cash equivalents at beginning of period 65,325 70,085 Cash and cash equivalents at end of period 83,987 57,105