Chugai Pharmaceutical Co., Ltd.

Strong Q3 FY2026 performance; tracking to and likely to exceed full-year forecast (core basis) - Revenue: JPY 906.8bn, +14.1% YoY (core basis; +JPY 112.2bn). - Core operating profit: JPY 536.1bn, +JPY 85.6bn YoY; operating margin +0.8pp to 50.2%. - Drivers: Japan and overseas sales both grew; other revenue rose sharply (royalties + milestones), supporting profit growth. - Management view: performance is tracking well vs full-year forecast and is expected to exceed it.

Where growth came from (and the main “one-off” item) - Domestic (Japan) revenue: +JPY 62.6bn YoY. - Positive: growth in core and new products. - Transition effect: front-loading shipments to wholesalers ahead of next-gen infrastructure transition (ERP), supporting net sales. - Pressure: drug price revisions and generic penetration were negative, but outweighed by product growth + shipping timing. - Overseas: +JPY 49.6bn YoY. - Benefit: strong product demand, notably NEMLUVIO (Galderma) and Alecensa (Roche) exports. - Headwind: lower export unit prices (including FX and volume mix), largely offset by volume and royalties/milestones. - Surprising/important technical point (investor-relevant): ERP replacement caused about JPY ~30bn “shipment timing” benefit in Q3; management says it’s one-time and should reverse/adjust in Q4.

2026 outlook: specific indications that full-year revenue/profit should beat forecast - Hemlibra exports: expect full-year in line with forecast; Q4 export plan already fixed, implying limited upside beyond execution. - Actemra: expects to exceed forecast by ~JPY 10bn+ (based on Q3-to-date vs full-year forecast gap). - For royalties (Roche and non-Roche): progress described as within expectations for both; magnitude of upside vs forecast not explicitly guided.