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. May 12, 2025 Consolidated Financial Results for the Fiscal Y ear Ended March 31, 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 Corporate Communications Department Telephone: +81-3-5977-5002 Scheduled date of annual general meeting of shareholders: June 27, 2025 Scheduled date of dividend payment commencement: June 30, 2025 Scheduled date of annual securities report submission: June 26, 2025 Supplementary materials for financial results: Yes Financial results briefing: Yes (for institutional investors and analysts) (Amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025) (1) Consolidated Operating Results (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) (%) Year ended March 31, 2025 94,035 30.5 21,034 121.1 21,279 113.8 13,945 73.8 Year ended March 31, 2024 72,044 (1.3) 9,513 18.9 9,951 14.0 8,025 47.5 Note: Comprehensive income: Fiscal 2024: ¥ 14,237 million [21.9%] Fiscal 2023: ¥ 11,684 million [113.4%] Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales (Y en) (Y en) (%) (%) (%) Year ended March 31, 2025 365.42 – 9.4 11.8 22.4 Year ended March 31, 2024 212.67 – 5.7 5.9 13.2 Reference: Share of profit (loss) of entities accounted for using equity method: Fiscal 2024: ¥ – million Fiscal 2023: ¥ – million
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2 (2) Consolidated Financial Position Total assets Net assets Equity-to-asset ratio Net assets per share (Million yen) (Million yen) (%) (Y en) As of March 31, 2025 190,422 152,634 80.2 3,974.47 As of March 31, 2024 171,623 143,755 83.8 3,796.05 Reference: Equity: As of March 31, 2025: ¥ 152,634 million As of March 31, 2024: ¥ 143,755 million (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of year (Million yen) (Million yen) (Million yen) (Million yen) Year ended March 31, 2025 29,780 (19,650) (5,369) 70,085 Year ended March 31, 2024 2,577 (5,854) (5,658) 65,325 2. Cash Dividends Annual dividends per share Total cash dividends (Annual) Dividend payout ratio (Consolidated) Dividends to net assets ratio (Consolidated) 1st quarter 2nd quarter 3rd quarter Year-end Total (Y en) (Y en) (Y en) (Y en) (Y en) (Million yen) (%) (%) Year ended March 31, 2024 – 75.00 – 75.00 150.00 5,684 70.5 4.0 Year ended March 31, 2025 – 115.00 – 75.00 190.00 7,253 52.0 4.9 Year ending March 31, 2026 (Forecast) – 95.00 – 95.00 190.00 214.6 * The dividends per share for the 2nd quarter of the year end ed March 31, 2025 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) (%) (Y en) Year ending March 31, 2026 88,000 (6.4) 5,200 (75.3) 6,000 (71.8) 3,400 (75.6) 88.53
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3 * Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 2 companies (Aadi Bioscience, Inc. and KAKEN INVESTMENTS INC.) (2) Changes in accounting policies, changes in accounting estimates, and restatement 1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes 2) Changes in accounting policies other than 1): None 3) Changes in accounting estimates: None 4) Restatement: None (3) Number of issued shares (common stock) 1) Number of issued shares at the end of the period (including treasury stock) As of March 31, 2025 45,939,730 shares As of March 31, 2024 45,939,730 shares 2) Number of treasury shares at the end of the period As of March 31, 2025 7,535,854 shares As of March 31, 2024 8,070,003 shares 3) Average number of shares during the period Fiscal 2024 38,162,063 shares Fiscal 2023 37,737,574 shares Note: The number of treasury shares at the end of the period includes the Company’s shares held by the “Board Benefit Trust (BBT)” (93,600 shares as of March 31, 2025 and 28,200 shares as of March 31, 2024). The Company’s shares held by the BBT are included in the number of treasury stock to be deducted in the calculation of the average number of shares during the period (64,055 shares as of March 31, 2025 and 29,898 shares as of March 31, 2024). * Financial results reports are exempt from audit 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 3. Consolidated Financial Results for Fiscal 2024 (1) Consolidated balance sheets (Millions of yen) Fiscal 2023 (As of March 31, 2024) Fiscal 2024 (As of March 31, 2025) Assets Current assets Cash and deposits 50,625 54,093 Notes and accounts receivable - trade, and contract assets 23,744 21,178 Marketable securities 14,699 15,992 Merchandise and finished goods 8,062 8,805 Work in process 2,786 2,311 Raw materials and supplies 6,319 7,904 Other 736 1,091 Allowance for doubtful accounts (0) (0) Total current assets 106,974 111,377 Non-current assets Property, plant and equipment Buildings and structures 43,180 44,001 Accumulated depreciation (27,445) (28,470) Buildings and structures, net 15,734 15,530 Machinery, equipment and vehicles 17,075 17,181 Accumulated depreciation (14,302) (14,689) Machinery, equipment and vehicles, net 2,772 2,491 Tools, furniture and fixtures 8,483 8,760 Accumulated depreciation (6,836) (7,049) Tools, furniture and fixtures, net 1,647 1,711 Land 3,867 3,867 Construction in progress 1,332 4,027 Total property, plant and equipment 25,355 27,629 Intangible assets In-process research and development 5,800 4,400 Goodwill 937 14,035 Other 724 854 Total intangible assets 7,462 19,289 Investments and other assets Investment securities 20,532 18,875 Long-term prepaid expenses 4,991 4,352 Retirement benefit asset 3,102 4,159 Deferred tax assets 2,590 4,065 Other 614 674 Total investments and other assets 31,831 32,126 Total non-current assets 64,648 79,045 Total assets 171,623 190,422
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5 (Millions of yen) Fiscal 2023 (As of March 31, 2024) Fiscal 2024 (As of March 31, 2025) Liabilities Current liabilities Notes and accounts payable - trade 6,976 8,186 Electronically recorded obligations - operating 123 136 Short-term bank loans 3,850 3,850 Accounts payable-other 4,146 6,311 Accrued expenses 662 1,145 Income taxes payable 76 7,285 Provision for bonuses 946 1,154 Provision for directors’ bonuses 31 86 Other 2,209 2,198 Total current liabilities 19,024 30,354 Non-current liabilities Provision for share-based remuneration 137 163 Net defined benefit liability 6,393 4,954 Deferred tax liabilities 1,947 1,514 Other 365 800 Total non-current liabilities 8,843 7,433 Total liabilities 27,868 37,787 Net assets Shareholders’ equity Common stock 23,853 23,853 Capital surplus 11,462 12,932 Retained earnings 128,506 135,242 Treasury stock (28,613) (28,233) Total shareholders’ equity 135,207 143,794 Accumulated other comprehensive income Net unrealized holding gain on securities 7,184 6,257 Foreign currency translation adjustment – (57) Remeasurements of defined benefit plans 1,363 2,640 Total accumulated other comprehensive income 8,547 8,840 Total net assets 143,755 152,634 Total liabilities and net assets 171,623 190,422
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6 (2) Consolidated statements of income and comprehensive income (Consolidated statements of income) (Millions of yen) Fiscal 2023 (April 1, 2023 – March 31, 2024) Fiscal 2024 (April 1, 2024 – March 31, 2025) Net sales 72,044 94,035 Cost of sales 33,505 35,502 Gross profit 38,539 58,532 Selling, general and administrative expenses Salaries 5,657 5,579 Bonuses and provision for bonuses 1,160 1,279 Provision for directors’ bonuses 31 86 Retirement benefit expenses 272 164 Research and development expenses 12,543 18,725 Depreciation 317 271 Other 9,042 11,390 Total selling, general and administrative expenses 29,025 37,497 Operating profit 9,513 21,034 Other income Interest income 8 77 Dividends income 471 536 Other 64 87 Total other income 543 701 Other expenses Interest expenses 17 28 Foreign exchange losses 59 370 Loss on investments in investment partnership 21 33 Other 7 24 Total other expenses 106 456 Ordinary profit 9,951 21,279 Extraordinary income Gain on sales of investment securities 13 250 Other 0 0 Total extraordinary income 14 250 Extraordinary losses Loss on retirement of non-current assets 148 68 Impairment losses 19 1,488 Loss on valuation of investment securities – 537 Other 0 0 Total extraordinary losses 168 2,094 Profit before income taxes 9,796 19,435 Income taxes-current 1,926 7,718 Income taxes-deferred (155) (2,228) Total income taxes 1,770 5,490 Profit 8,025 13,945 Profit attributable to owners of the parent 8,025 13,945
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7 (Consolidated statements of comprehensive income) (Millions of yen) Fiscal 2023 (April 1, 2023 – March 31, 2024) Fiscal 2024 (April 1, 2024 – March 31, 2025) Profit 8,025 13,945 Other comprehensive income Net unrealized holding gain on securities 2,460 (926) Foreign currency translation adjustment – (57) Remeasurements of defined benefit plans 1,198 1,277 Total other comprehensive income 3,658 292 Comprehensive income 11,684 14,237 Total comprehensive income attributable to owners of the parent 11,684 14,237
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8 (3) Consolidated statements of changes in net assets Fiscal 2023 (April 1, 2023 – March 31, 2024) (Millions of yen) Shareholders’ equity Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Balance at the beginning of current period 23,853 11,406 126,135 (30,026) 131,368 Changes during the year Cash dividends (5,655) (5,655) Profit attributable to owners of the parent 8,025 8,025 Purchase of treasury stock (2) (2) Disposal of treasury stock 55 1,415 1,470 Other, net Total changes during the year – 55 2,370 1,413 3,838 Balance at the end of current period 23,853 11,462 128,506 (28,613) 135,207 Accumulated other comprehensive income Non-controlling interests Total net assets Net unrealized holding gain on securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at the beginning of current period 4,724 165 4,889 578 136,836 Changes during the year Cash dividends (5,655) Profit attributable to owners of the parent 8,025 Purchase of treasury stock (2) Disposal of treasury stock 1,470 Other, net 2,460 1,198 3,658 (578) 3,080 Total changes during the year 2,460 1,198 3,658 (578) 6,918 Balance at the end of current period 7,184 1,363 8,547 – 143,755
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9 Fiscal 2024 (April 1, 2024 – March 31, 2025) (Millions of yen) Shareholders’ equity Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Balance at the beginning of current period 23,853 11,462 128,506 (28,613) 135,207 Changes during the year Cash dividends (7,208) (7,208) Profit attributable to owners of the parent 13,945 13,945 Purchase of treasury stock (5,935) (5,935) Disposal of treasury stock 1,470 6,316 7,786 Other, net Total changes during the year – 1,470 6,736 380 8,586 Balance at the end of current period 23,853 12,932 135,242 (28,233) 143,794 Accumulated other comprehensive income Total net assets Net unrealized holding gain on securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Balance at the beginning of current period 7,184 – 1,363 8,547 143,755 Changes during the year Cash dividends (7,208) Profit attributable to owners of the parent 13,945 Purchase of treasury stock (5,935) Disposal of treasury stock 7,786 Other, net (926) (57) 1,277 292 292 Total changes during the year (926) (57) 1,277 292 8,879 Balance at the end of current period 6,257 (57) 2,640 8,840 152,634
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10 (4) Consolidated statements of cash flows (Millions of yen) Fiscal 2023 (April 1, 2023 – March 31, 2024) Fiscal 2024 (April 1, 2024 – March 31, 2025) Cash flows from operating activities Profit before income taxes 9,796 19,435 Depreciation 2,596 2,475 Impairment losses 19 1,488 Amortization of goodwill 157 79 Increase (decrease) in net defined benefit asset and liability (141) (606) Interest and dividends income (479) (613) Interest expenses 17 28 Loss (gain) on valuation of investment securities – 537 Loss (gain) on investments in investment partnerships 21 33 Loss (gain) on sale of investment securities (13) (250) Loss on retirement of non-current assets 148 67 Decrease (increase) in notes and accounts receivable-trade (4,559) 3,577 Decrease (increase) in inventories (1,603) (1,084) Increase (decrease) in trade payables 880 1,100 Other, net (936) 3,771 Subtotal 5,903 30,039 Interest and dividends income received 479 606 Interest expenses paid (17) (28) Income taxes (paid) refund (3,788) (836) Net cash provided by (used in) operating activities 2,577 29,780 Cash flows from investing activities Purchase of property, plant and equipment (1,861) (4,138) Purchase of intangible assets (306) (254) Purchase of investment securities – (400) Proceeds from sales of investment securities 516 520 Purchase of long-term prepaid expenses (4,182) (268) Purchase of shares of subsidiaries resulting in change in scope of consolidation – (15,378) Other, net (21) 269 Net cash provided by (used in) investing activities (5,854) (19,650) Cash flows from financing activities Purchase of treasury stock (2) (5,935) Proceeds from disposal of treasury stock 1 7,764 Cash dividends paid (5,657) (7,198) Net cash provided by (used in) financing activities (5,658) (5,369) Effect of exchange rate change on cash and cash equivalents – – Net increase (decrease) in cash and cash equivalents (8,935) 4,760 Cash and cash equivalents at beginning of year 74,260 65,325 Cash and cash equivalents at end of year 65,325 70,085