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.
August 4, 2022

Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2023
(Under Japanese GAAP)
Listed Company: Zeria Pharmaceutical Co., Ltd.
(Stock Exchange: Tokyo Stock Exchange)
Code Number: 4559
(URL: https://www.zeria.co.jp/)
Representative: Mitsuhiro Ibe, Representative Director, President & COO
Person in charge of reference: Tomoyuki Nishizawa, Director, Public Relations Division
TEL (03) 3661-1039
Scheduled date to submit the Quarterly Securities Report: August 8, 2022
Scheduled date to commence dividend payments:–
Preparation of supplementary documents to the quarterly financial results:
None
Holding of quarterly financial results presentation:
None(Amounts under a million yen are truncated.)

1. Consolidated Financial Highlights (April 1, 2022 through June 30, 2022)(1) Consolidated Financial Results (cumulative)
Net sales
Three months ended
June 30, 2022
June 30, 2021

Million yen
16,305
13,548%20.3
6.4(Percentage figures indicate changes from the same period of the previous year.)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen
%
2,977
137.8
2,974
42.9
2,601
84.6
1,251
18.3
2,081
229.1
1,408
44.8

Note: Comprehensive income: For the three months ended June 30, 2022: 3,262 million yen [–%]For the three months ended June 30, 2021: 211 million yen [(86.1)%]

Basic earnings
per share
Three months ended
June 30, 2022
June 30, 2021

Diluted earnings
per share

Yen
58.71
30.91

Yen
–
–

(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022
March 31, 2022

Net assets

Million yen
128,987
124,282

Equity ratio

Million yen
57,03955,092

Reference: Equity: As of June 30, 2022: 56,825 million yen

Net assets per share
%
44.1
44.2

Yen
1,286.96
1,236.09

Year-end

Total

As of March 31, 2022: 54,894 million yen

2. Dividends
Annual dividends
First quarter
Year ended
March 31, 2022
Year ending
March 31, 2023
Year ending
March 31, 2023 (Forecast)Second quarter

Third quarter

Yen

Yen

Yen

Yen

Yen

–

17.00

–

18.00

35.00

18.00

–

18.00

36.00

–

Note: Revision of the forecast of dividends most recently announced: None

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2023 (April 1, 2022 through March 31, 2023)

Net salesFirst six months
Full year

Million yen
33,00066,000

%
15.4
10.9

(Percentage figures indicate changes from the same period of the previous year.)
Basic
Profit attributable toOperating profit
Ordinary profit
earnings perowners of parent
shareMillion yen%
Million yen%
Million yen
%
Yen
3,500
31.0
3,500
12.3
2,800
32.3
63.30
7,000
10.0
7,000
17.9
5,600
41.4
126.72

Note: Revision of the financial forecast most recently announced: None

* Notes(1) Significant changes of subsidiaries during the three months ended June 30, 2022 (changes in specified subsidiaries
resulting in changes in scope of consolidation): None
Inclusion: – (Company name: –)Exclusion: – (Company name: –)(2) Application of special accounting for preparing the quarterly consolidated financial statements: Yes
Note: For details, please refer to “2. Quarterly Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to quarterly
consolidated financial statements” on page 8 of the Attached Material.

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after
error corrections
1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2) Changes in accounting policies due to other reasons: None
3) Changes in accounting estimates: None
4) Restatement of prior period financial statements after error corrections: None
Note: For details, please refer to “2. Quarterly Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to quarterly
consolidated financial statements” on page 8 of the Attached Material.

(4) Number of shares issued (common shares)
1) Number of shares issued as of the end of the term (including treasury shares):
As of June 30, 2022: 53,119,190 shares
As of March 31, 2022: 53,119,190 shares
2) Number of shares of treasury shares as of the end of the term:
As of June 30, 2022: 8,964,868 shares
As of March 31, 2022: 8,709,322 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year):
For the three months ended June 30, 2022: 44,310,896 shares
For the three months ended June 30, 2021: 45,583,769 shares* Quarterly Results Reports Are Exempt from Quarterly Review Conducted by Certified Public Accountants or
An Audit Corporation.
* Cautionary Statement with Respect to Appropriate Use of Financial Forecast and Other Special Matters
The description about the future including the projection in this document is based on information available to the Company
at present and certain presumptions which the Company considers reasonable. Consequently, any descriptions herein do notconstitute assurances regarding actual results by the Company. The actual results for future terms may differ from theinformation in this document due to various factors. For the assumptions made in financial forecasts and cautions concerning
the use thereof, please refer to “1. Qualitative Information on Quarterly Financial Results, (3) Explanation of consolidated
financial forecasts and other forward-looking statements” on page 3 of the Attached Material.

○Table of contents of attachments
1. Qualitative Information on Quarterly Financial Results ......................................................................................2(1) Explanation of operating results ....................................................................................................................2(2) Explanation of financial position ...................................................................................................................2(3) Explanation of consolidated financial forecasts and other forward-looking statements ................................3
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .....................................................4(1) Quarterly consolidated balance sheet.............................................................................................................4(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ....6
Quarterly consolidated statement of income ..................................................................................................6
Quarterly consolidated statement of comprehensive income.........................................................................7(3) Notes to quarterly consolidated financial statements .....................................................................................8(Notes on premise of a going concern) ..........................................................................................................8(Notes on significant changes in the amount of shareholders’ equity) ..........................................................8(Adoption of special accounting methods for preparation of quarterly consolidated financial statements) ..8(Change in accounting policy) .......................................................................................................................8(Segment information, etc.) ...........................................................................................................................9
3. Supplemental Information ..................................................................................................................................10(1) Sales results .................................................................................................................................................10(2) Status of pipeline of new drugs.................................................................................................................... 111

1. Qualitative Information on Quarterly Financial Results(1) Explanation of operating results
Net sales for the first three months of the fiscal year ending March 31, 2023 were 16,305 million yen (up20.3% from the same period of the previous fiscal year). As for profits, operating profit was 2,977 million yen(up 137.8% from the same period of the previous fiscal year), ordinary profit was 2,974 million yen (up 42.9%
from the same period of the previous fiscal year), and profit attributable to owners of parent was 2,601 million
yen (up 84.6% from the same period of the previous fiscal year). The large difference in the year-on-year
growth rate between operating profit and ordinary profit is due to the large amount of foreign exchange gains
recorded in the same period of the previous fiscal year.
Following are the results by business segment.
(i) Ethical Pharmaceuticals Business
As for our mainstay product, Asacol, a therapeutic agent for ulcerative colitis, sales in the domestic
market decreased from the same period of the previous fiscal year, affected by, among other things, theNHI drug price revision implemented in April 2022. However, in the overseas market, sales in Northern
Europe, which had been weak in the first quarter of the previous fiscal year, turned around and sales of
Asacol 1600mg also grew, resulting in strong overall sales. Sales of Entocort (domestic sales name:Zentacort), an inflammatory bowel disease (IBD) therapeutic agent, remained on the same level as that ofthe previous year in Japan. In the overseas market, on the other hand, its sales increased in such regions as
Canada and Northern Europe, making overall sales grew significantly. In addition, sales of DIFICLIR, atherapeutic agent for Clostridium difficile infection, also achieved a significant sales growth as a result of
aggressive investment of sales resources in response to its recommendation as a first-line drug in theEuropean guidelines for the treatment of infectious diseases. With regard to Acofide and Ferinject, we areworking to build the market, particularly in medical institutions performing endoscopy, thegastroenterology, and obstetrics and gynecology.
As a result, net sales in the business amounted to 10,280 million yen (up 24.5% from the same period of
the previous fiscal year).
(ii) Consumer Healthcare Business
As for the Hepalyse range, although it is still affected by the spread of COVID-19 infection and a sharp
decline in demand from inbound tourists, its sales significantly increased owing to the substantial increasein the sales of not only the pharmaceutical Hepalyse range but also the Hepalyse W range for convenience
stores. Sales of the Chondroitin range also remained strong, due in part to aggressive advertising andpromotional investments. On the other hand, sales of the WithOne range of botanical laxative products,
and hygiene products such as disinfectants decreased due to the impact from competing products.
As a result, net sales in the business amounted to 5,988 million yen (up 14.0% from the same period of theprevious fiscal year).
(iii) Other
Net sales in this segment amounted to 36 million yen (down 0.6% from the same period of the previous
fiscal year), mainly due to insurance agency business and real estate lease revenue.
(2) Explanation of financial position
Total assets at the end of the first quarter of the fiscal year ending March 31, 2023 were 128,987 million yen,
an increase of 4,705 million yen from the end of the previous fiscal year. Current assets increased 3,950
million yen to 45,614 million yen from the end of the previous fiscal year, and non-current assets increased
754 million yen to 83,373 million yen from the end of the previous fiscal year. Major changes in current assets
included an increase of 2,461 million yen in cash and deposits, an increase of 813 million yen in notes andaccounts receivable - trade, and an increase of 323 million yen in inventories such as merchandise and finished2goods. Main changes in non-current assets were an increase of 1,020 million yen in intangible assets, and adecrease of 356 million yen in investments and other assets.
Total liabilities at the end of the quarter under review were 71,948 million yen, an increase of 2,758 million
yen from the end of the previous fiscal year. Current liabilities increased 2,968 million yen to 47,161 million
yen from the end of the previous fiscal year, and non-current liabilities decreased 209 million yen to 24,786
million yen from the end of the previous fiscal year. Main changes in current liabilities were an increase of 891
million yen in accounts payable - trade, increase of 1,523 million yen in short-term borrowings, and anincrease of 595 million yen in other current liabilities including an increase in accrued expenses. Main changes
in non-current liabilities were a decrease of 82 million yen in long-term borrowings and a decrease of 98
million yen in retirement benefit liability.
Net assets at the end of the quarter under review were 57,039 million yen, an increase of 1,947 million yen
from the end of the previous fiscal year. This was mainly due to profit attributable to owners of parent of 2,601
million yen, payment of 799 million yen as dividends declared at the end of the previous period, an increase of
515 million yen in treasury shares, a decrease of 412 million yen in valuation difference on available-for-salesecurities, and an increase of 1,072 million yen in foreign currency translation adjustment.
As a result, equity ratio at the end of the quarter under review decreased by 0.1% from the end of the previous
fiscal year to 44.1%.
(3) Explanation of consolidated financial forecasts and other forward-looking statements
The business results for the first three months of the fiscal year ending March 31, 2023 slightly exceeded theinitial forecasts owing to growth in overseas sales such as those of Asacol and DIFICLIR. Although net sales
are expected to be almost in line with our business plan in the second quarter and beyond, the consolidated
financial forecast announced on May 11, 2022 remains unchanged at this time, due to the impact of theresurgence of COVID-19 infection and the uncertainty of future trends in foreign exchange rates.

3

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly consolidated balance sheet(Thousands of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Sales right
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for loss on cancellation of contracts
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4

As of June 30, 2022

11,704,282
16,206,812
6,721,583
1,409,684
3,819,276
1,855,502(53,425)
41,663,717

14,165,926
17,019,968
7,206,946
1,207,232
3,859,818
2,205,228(50,833)
45,614,287

6,655,232
12,354,010
4,130,101
23,139,343

6,576,532
12,357,258
4,296,038
23,229,829

5,830,459
27,539,473
7,836,095
41,206,029

5,756,297
28,268,077
8,202,455
42,226,830

7,005,587
10,736,005
583,595(51,945)
18,273,242
82,618,615
124,282,333

6,709,480
10,673,666
581,101(47,511)
17,916,736
83,373,396
128,987,683

2,049,590
33,842,933
458,297
1,530,935
6,311,307
44,193,063

2,940,816
35,366,065
778,944
1,168,752
6,906,577
47,161,156

18,385,860
490,142
1,073,819
55,827
4,991,146
24,996,794
69,189,858

18,302,900
530,160
975,594
55,8784,922,315
24,786,848
71,948,004

(Thousands of yen)
As of March 31, 2022
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of June 30, 2022

6,593,398
11,685,121
48,860,697(17,593,074)
49,546,143

6,593,398
11,685,121
50,662,609(18,109,027)
50,832,101(193,416)
3,215,379
2,326,536
5,348,499
197,832
55,092,474
124,282,333(605,982)
4,287,438
2,311,497
5,992,953
214,623
57,039,679
128,987,683

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income(Thousands of yen)Three months ended
June 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

Three months ended
June 30, 2022

13,548,962
4,250,003
9,298,958
8,047,156
1,251,802

16,305,183
4,552,528
11,752,655
8,775,525
2,977,129

1,893
146,822731,333
28,102
908,152

3,230
156,760–
32,780192,772

69,921–
8,648
78,5702,081,384

84,984
103,018
7,031
195,035
2,974,866

3,719
3,719

251
251

2,061
2,061
2,083,041
671,324
1,411,717
2,760
1,408,956

2,946
2,946
2,972,172
367,525
2,604,646
3,357
2,601,289

Quarterly consolidated statement of comprehensive income(Thousands of yen)Three months ended
June 30, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Three months ended
June 30, 2022

1,411,717

2,604,646(711,968)(341,790)(146,137)(1,199,896)
211,820(412,566)
1,085,507(15,039)
657,901
3,262,548

197,332

3,245,743

14,48816,805

(3) Notes to quarterly consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Adoption of special accounting methods for preparation of quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses were calculated by reasonably estimating the effective tax rate after applying tax effectaccounting to the profit before income taxes for the fiscal year that includes the first quarter of the current
fiscal year and multiplying profit before income taxes by such estimated effective tax rate.
(Change in accounting policy)
Adoption of the Implementation Guidance on Accounting Standard for Fair Value Measurement
The Company adopted the Implementation Guidance on Accounting Standard for Fair Value Measurement(ASBJ Guidance No. 31, June 17, 2021) from the beginning of the first quarter of the current fiscal year. In
accordance with the transitional treatment prescribed in paragraph 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement, the new accounting policies prescribed by the
Implementation Guidance on Accounting Standard for Fair Value Measurement are to be applied
prospectively. There is no impact on the consolidated quarterly financial statements for the first three monthsof the current fiscal year.

8

(Segment information, etc.)[Segment information]
Ⅰ First three months of the previous fiscal year (from April 1, 2021 to June 30, 2021)
1. Information on net sales and profit or loss by reportable segment(Thousands of yen)
Reportable segment
EthicalConsumerPharmaceuticals Healthcare
Business
Business

Net sales
Sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit

Other(Note 1)

Total

Total

Adjustment(Note 2)

Amountrecorded inquarterly
consolidated
statement ofincome(Note 3)8,259,396

5,253,131

13,512,527

36,435

13,548,962–

13,548,962

–

48

48

144,342

144,390(144,390)–

8,259,396
1,546,240

5,253,179
986,126

13,512,575
2,532,366

180,777
68,596

13,693,352
2,600,963(144,390)(1,349,161)

13,548,962
1,251,802(Notes) 1. “Other” is a business segment not included in the reportable segments and includes the insurance agency businessand real estate business.
2. Adjustment of segment profit of (1,349,161) thousand yen is mainly corporate expenses such as general andadministrative expenses that are not allocated to reportable segments.
3. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment losses on non-current assets or goodwill by reportable segment
Not applicable.
Ⅱ First three months of the current fiscal year (from April 1, 2022 to June 30, 2022)
1. Information on net sales and profit or loss by reportable segment(Thousands of yen)

Adjustment(Note 2)

Amountrecorded inquarterly
consolidated
statement ofincome(Note 3)

Reportable segment
EthicalConsumerPharmaceuticals Healthcare
Business
Business

Net sales
Sales to externalcustomers
Intersegment sales andtransfers
Total
Segment profit

Total

Other
(Note 1)

Total

10,280,864

5,988,085

16,268,949

36,233

16,305,183–

16,305,183

2,816

58

2,875

109,515

112,390(112,390)–

10,283,680
2,831,626

5,988,144
1,346,578

16,271,824
4,178,205

145,749
58,03916,417,574
4,236,244(112,390)(1,259,114)

16,305,183
2,977,129(Notes) 1. “Other” is a business segment not included in the reportable segments and includes the insurance agency businessand real estate business.
2. Adjustment of segment profit of (1,259,114) thousand yen is mainly corporate expenses such as general andadministrative expenses that are not allocated to reportable segments.
3. Segment profit is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment losses on non-current assets or goodwill by reportable segment
Not applicable.

93. Supplemental Information(1) Sales results
The table below shows sales results by business segment in the first three months of the current fiscal year.
(Thousands of yen)First three months ofthe current fiscal year
(from April 1, 2022
to June 30, 2022)

Name of segment

Increase/(decrease) overthe same period of
the previous fiscal year (%)

Ethical Pharmaceuticals Business

10,280,864

24.5

Consumer Healthcare Business

5,988,085

14.0

16,268,949

20.4

36,233(0.6)

16,305,183

20.3

Total reportable segment
Other
Total
(Note)

Inter-segment transactions are offset and eliminated.

10(2) Status of pipeline of new drugs
I.

Domestic

As of August 4, 2022

Stage

Development Code/
Generic Name

Development

Indications

Classification

OriginPhase IIIZ-338/Acotiamide

Zeria

Pediatric functional
dyspepsia

Upper gastrointestinal
motility modulator

Original

Phase III

ZG-801/Patiromer
Sorbitex Calcium

Zeria

Hyperkalemia

Potassium binder

In-licensed

Phase II*
(InvestigatorInitiated Trial)

Z-338/Acotiamide

KyushuUniversity

Esophagogastricjunction outflow
obstruction

Upper gastrointestinal
motility modulator

Original*: Supported by a grant from Japan Agency for Medical Research and Development (AMED)II. Overseas
Stage

Development Code/
Generic Name

Development

Indications

Classification

OriginPhase III(Europe)

Z-338/Acotiamide

Zeria

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original

NDA approved(Mexico)Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

NDA filed (Chile,
Colombia, Peru,
Ecuador, Dominican
Republic)

Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

NDA filed(Thailand,
Indonesia)

Z-338/Acotiamide

Meiji Seika
PharmaFunctional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

11