Sosei : Consolidated Financial Results for the Third Quarter FY2015 (IFRS)

54c443f6-c85b-4bdc-b439-96634556640e.pdf

Consolidated Financial Results for the Third Quarter FY2015 (IFRS)

10 February 2016

Company name: Sosei Group Corporation Listing: Tokyo Stock Exchange Security code: 4565 URL http://www.sosei.com/

Representative: ShinichiTamura

Representative Executive Officer, CEO

Contact person:

Hidetoshi Torami

Executive Vice President, CFO Tel:+81-03-5210-3290

Scheduled date of security report filing:	10 February 2016	Scheduled date of dividend payments:	--
Supplementary materials for financial results:	--
Financial results briefing session:	--

(Rounded down to nearest million yen)

(1) Consolidated operating results (cumulative)

(Percentages are shown as year-on-year changes)

1. Consolidated results for Q3 FY2015 (from 1 April 2015 to 31 December 2015)

   
   

   Revenue		Operating income		Net income before income taxes		Net income		Net income attributable to owners of the parent company		Total comprehensive income
   Q3 FY2015	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
   	7,741	713.7	3,449	--	2,754	618.2	2,217	745.5	2,293	774.7	2,299	241.7
   Q3 FY2014	951	(48.2)	16	(98.2)	383	(60.4)	262	(72.8)	262	(72.8)	673	(42.9)

   
   

   Net income per share - basic	Net income per share - diluted
   Q3 FY2015	Yen	Yen
   	155.03	153.69
   Q3 FY2014	19.06	18.87

   
   

   (2) Consolidated financial position

   Total assets	Total equity	Equity attributable to owners of the parent company	Ratio of equity attributable to owners of the parent company to total assets
   Q3 FY2015	Million yen	Million yen	Million yen	%
   	48,342	29,849	29,684	61.4
   FY2014	43,800	14,894	14,653	33.5

   
   

   
   

2. Dividends

   Dividends per share
   End Q1	End Q2	End Q3	Year end	Total
   FY2014	Yen	Yen	Yen	Yen	Yen
   	－	0.00	－	10.00	10.00
   FY2015	－	0.00	－
   FY2015 (E)	0.00	0.00

   (Note) Revision to the latest dividend forecasts: None

   
   

   
   

3. Forecast for the FY2015 (from 1 April 2015 to 31 March 2016)

(Percentages are shown as year-on-year changes)

Revenue		Operating income		Net income before income taxes		Net income attributable to owners of the parent company		Net basic earnings per share
FY2015	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
	11,732	219.6	5,899	432	5,915	332.8	6,047	975.0	439.02

(Note) Revision to the latest financial forecasts: None

• Notes

• Changes in the number of significant subsidiaries in this consolidated cumulative quarter (changes of specified subsidiaries affecting the scope of consolidation): None

  
  

• Changes in accounting policies, changes in accounting estimates

• Changes in accounting policies required by IFRS: None

• Changes due to changes in accounting policies other than those of item 1: None

• Changes in accounting estimates: None

  
  

  Q3 FY2015	16,823,384	shares	FY2014	13,774,000	shares
  Q3 FY2015	－	shares	FY2014	－	shares
  Q3 FY2015	14,795,198	shares	Q3 FY2014	13,755,548	shares

• Number of common shares issued

• Number of shares issued at the end of financial period (including treasury shares)

• Number of treasury shares at the end of financial period

• Average number of shares issued during financial period (cumulative total)




• Implementation status of financial audit

  The audit procedures of the financial statements pursuant to the Financial Instruments and Exchange Law have been completed.

  
  

• Explanation regarding the appropriate use of forecasts of business results and other points to be noted (Note concerning forward-looking statements)

The financial forecast is based on judgments and estimates that have been prepared on the basis of information available as at the

time of disclosure of this material. The actual business results may differ materially from the forecasts due to various factors.

• Contents of Attached Materials

1. Analysis of Operating Results and Financial Position	4
1) Analysis of operating results	4
2) Analysis of financial position	8
3) Earnings forecast	9
2. Matters related to summary information (notes)	9
1) Changes in the number of significant subsidiaries in this consolidated cumulative quarter	9
2) Changes in accounting policies and changes in accounting estimates	9
3. Consolidated Financial Statements (IFRS)	10
1) Consolidated statement of financial position	10
2) Consolidated statement of comprehensive income	11
3) Consolidated statement of changes in equity	12
4) Consolidated statement of cash flow	13
5) Notes related to going concern assumptions	14
6) Segment information	14

1．Analysis of Operating Results and Financial Position

1. Analysis of operating results
2. Current term operating results

The Group pursues pharmaceutical research and development mainly through its subsidiaries based in Japan and the UK. The main source of its revenue comes from the development milestones and royalties from the licensees and the sales from its pharmaceutical products. Overall expenses have increased as Heptares Therapeutics Ltd. ("Heptares"), acquired in February 2015, is now included in the Group's results.




The Group recorded the following consolidated cumulative financial results for Q3 2015.




Consolidated operating results




(JPY Million)

Cumulative Q3 FY2014	Cumulative Q3 FY2015	Change
Revenue	951	7,741	6,789
Gross profit	905	7,741	6,835
Operating income (loss)	16	3,449	3,432
Net income (loss)	262	2,217	1,954




Revenue and gross profit

Revenue in this consolidated cumulative quarter totalled 7,741 million yen, an increase of 713.7% compared to the previous financial year. This was mainly due to milestones and increased royalty revenue from Seebri® (NVA237*) and Ultibro® (QVA149*), and receipt of upfront payments associated with the licensing of the Heptares pipeline.




Operating income

In this consolidated cumulative quarter the Group recorded operating income of 3,449 million yen, an increase of 3,432 million yen from the comparative period of the previous financial year. This is mainly due to increased revenue and gross profit (referred above).




Net income

In this consolidated cumulative quarter the Group recorded net income of 2,217 million yen, an increase of 1,954 million yen from the comparative period of the previous financial year. This was mainly because while operating income increased, there was an accrual of interest expenses related to borrowings, as well as income tax expenditure.




* Seebri®,Ultibro® and Breezhaler® are the registered trademarks of Novartis AG.