Financial Results Conference Call - Q&A Transcript

Date and Time: 6-7 p.m. Thursday, January 31, 2019

Please note that this document is not a direct transcript of the Q&A session from the conference call, but is a simple summary including additions and corrections at the discretion of the company. The results and forecasts are forward-looking statements determined by the Company based on currently available information that may include risks and uncertainties. Please be aware that actual results may vary significantly due to various factors.

1. Please give us your analysis of the factors behind variance in operating profit for Q3 FY2018.

Comparing the cumulative nine months of FY2017 and the cumulative nine months of FY2018,

This all combined to give a loss of 25 billion yen.

2. Please explain the major reasons for increased growth in profits against Optronics sales growth from Q2 to Q3 of FY 2018.

Part of the support fee in the technical partnership contract with the Hangzhou Jinjiang Group was recorded in Q3 FY2018.

3. Please tell us about the sales forecast for Information Fine Materials for Q4 FY2018.

Sales in Q4 is expected to decrease because of seasonal factors including reduction in operating days during the Chinese New Year.

4. What will be the main themes of FY2019?

FY2019 is expected to be a year of accumulating small themes and improvements for strengthening profitability in the future. We will also seek to further improve productivity, taking the opportunity of rebuilding bases to move forward with production location optimization, etc.

5. Please explain the status of “life science” and its future forecast.

Phase 2 study of the RNAi-based investigational drug for idiopathic pulmonary fibrosis (IPF) is expected to be completed in FY2020.
Regarding the investigational new drug application for KRAS mutant tumors, we are preparing to initiate the Phase 1 study.