Consolidated Earnings Report for the Fiscal Year Ended September 30, 2020 [Japanese GAAP]
November 5, 2020
EPS Holdings, Inc.
First Section, Tokyo Stock Exchange4282
https://www.eps-holdings.co.jp
Yan Hao, Chairman & CEO
Kazuki Sekitani, Director, Vice President and Corporate Officer+81-3-5684-7873
December 18, 2020
December 21, 2020
December 18, 2020
Yes
Yes (for institutional investors and analysts)

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Scheduled date of General Stockholders’ Meeting:
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Supplementary explanatory materials prepared:
Explanatory meeting:(¥ million are rounded down)

1. Consolidated Results for the Fiscal Year Ended September 30, 2020 (October 1, 2019 to September 30, 2020)(¥ million; percentage figures represent year-on-year changes)(1) Consolidated Operating Results
Fiscal years ended
Profit attributable to
Net sales
Operating income
Recurring profit
September 30
owners of parent
Fiscal 2020
66,689(3.4)%
4,553(27.5)%
4,978(20.6)%
1,995(45.1)%
Fiscal 201969,0094.9%6,279(12.7)%
6,271(15.7)%
3,633(17.2)%
Note: Comprehensive income: Fiscal 2020: ¥1,539 million [(43.6)%], Fiscal 2019: ¥2,727 million [(46.5)%]

Fiscal years ended
September 30
Fiscal 2020
Fiscal 2019

Profit per share(diluted) (¥)

Profit per share (¥)
44.37
81.02

Return on equity
(ROE)
4.6%
8.4%

‒
‒

Recurring profit/
Total assets
7.3%
9.5%

Operating margin
6.8%
9.1%

Reference: Loss (gain) on entities accounted for using equity method: Fiscal 2020: ¥(0) million, Fiscal 2019: ¥(0) million(2) Consolidated Financial Position
Total assets
September 30, 2020
70,458September 30, 2019
66,566(¥ million)

Net assets

Equity ratio (%)
46,93946,33762.6
65.1

Reference: Equity: September 30, 2020: ¥44,106 million, September 30, 2019: ¥43,301 million(3) Status of Consolidated Cash Flows
Fiscal years ended
Cash flows from
September 30
operating activities
Fiscal 2020
5,847
Fiscal 2019
5,725
2. Dividends

Fiscal 2019
Fiscal 2020
Fiscal 2021
(forecast)(¥ million)

Cash flows frominvesting activities(2,783)(956)

Dividend per share (¥)
First
Quarter

SecondQuarter

Third
Quarter

Net assets per share (¥)
1,000.16
976.58Year End

Full Year

‒
‒

13.00
10.00

‒
‒

15.00
10.00

28.00
20.00

‒

10.00

‒

10.00

20.00

Cash flows from
Cash and cash equivalents,
financing activities
ending balance554
22,833(4,324)
19,141

Total dividend
amount(¥ million)

Dividend
payout ratio(consolidated)

1,250
899

34.6%
45.1%

Ratio of dividends
to net assets(consolidated)
2.9%
2.0%

33.9%

3. Forecast of Consolidated Results for Fiscal 2021 (October 1, 2020 to September 30, 2021)(¥ million; percentage figures represent year-on-year changes)

Net sales
Full year

69,800Operating income
4.7%

4,800

5.4%

Profit attributable toowners of parent
0.4%
2,600
30.3%

Recurring profit
5,000Profit per share (¥)
58.96

*Notes(1) Changes to important subsidiaries during the period (changes in specified subsidiaries resulting in revised scope of
consolidation): None
(2) Changes in accounting principles, accounting estimates and restatements
a. Changes in accounting policies in conjunction with revisions to accounting standards: Noneb. Other changes: Nonec. Changes in accounting estimates: None
d. Restatements: None
(3) Number of shares issued (common stock)a. Number of shares issued at end of period (including treasury stock):
Fiscal 2020 end
46,311,389
Fiscal 2019 end
b. Number of treasury stock at end of period:
Fiscal 2020 end
2,212,221
Fiscal 2019 end
c. Average number of stock during the period:
Fiscal 2020
44,967,612
Fiscal 201946,311,389
1,971,195
44,843,327

Note: The number of treasury shares at end of the period includes 93,090 shares of the Company held by EPS EKISHIN Co., Ltd.

(Reference) Summary of Non-Consolidated Results for Fiscal 2020 (October 1, 2019 to September 30, 2020)
Non-Consolidated Results for Fiscal 2020 (October 1, 2019 to September 30, 2020)(¥ million; percentage figures represent year-on-year changes)(1) Operating Results
Net sales
Operating income
Recurring profit
ProfitFiscal 2020
3,330
(22.9)%
1,274(49.8)%
1,297(49.5)%
120(96.1)%
Fiscal 2019
4,321
19.0%
2,536
12.9 %
2,570
12.8%
3,060
35.0%
Profit per share (¥)
Fiscal 2020
Fiscal 2019

Profit per share diluted
(¥)

2.67
68.12

‒
‒

(2) Financial Position(¥ million)

Total assets
September 30, 2020
September 30, 2019

Net assets
46,041
43,675Equity ratio (%)
31,321
32,773

Reference: Equity: September 30, 2020: ¥31,321 million, September 30, 2019: ¥32,773 million

68.0
75.0

Net assets per share (¥)
708.76737.59* This financial report is outside the scope of the audit reviews performed by certified public accountants or auditing firms.
* Explanation concerning the appropriate use of financial forecasts and other notable matters.
Earnings forecasts and other forward-looking statements in this report are based on data currently available to management andcertain assumptions that management believes are reasonable. Actual results may differ materially from these statements for various
reasons.

Table of Contents of Supplementary Materials
1. Summary of Operating Results and Other Matters ..................................................................................................... 2(1) Summary of Operating Results for the Fiscal Year Ended September 30, 2020................................................... 2(2) Summary of Financial Position as of September 30, 2020.................................................................................... 5(3) Summary of Cash Flows for the Fiscal Year Ended September 30, 2020............................................................. 6(4) Outlook ................................................................................................................................................................. 6(5) Risk Information Concerning COVID-19 ............................................................................................................. 9
2. Basic Policy Regarding Selection of Accounting Standards ...................................................................................... 9
3. Consolidated Financial Statements and Main Notes................................................................................................. 10(1) Consolidated Balance Sheets .............................................................................................................................. 10(2) Consolidated Statements of Income and Comprehensive Income ...................................................................... 12
Consolidated Statements of Income................................................................................................................ 12
Consolidated Statements of Comprehensive Income ...................................................................................... 13(3) Consolidated Statements of Changes in Shareholders Equity ............................................................................. 14(4) Consolidated Statements of Cash Flow ............................................................................................................... 16(5) Notes Concerning Consolidated Financial Statements........................................................................................ 18(Notes Concerning the Going Concern Assumption) ..................................................................................... 18(Segment Information) .................................................................................................................................... 18(Per Share Information) .................................................................................................................................. 20
4. Other ......................................................................................................................................................................... 21(1) Orders Received .................................................................................................................................................. 21

1

1. Summary of Operating Results and Other Matters(1) Summary of Operating Results for the Fiscal Year Ended September 30, 2020(¥ million)

Net sales
Operating income
Recurring profit
Profit attributable toowners of parent
Profit per share (¥)

Fiscal 2019(Year ended
September 30, 2019)
Amount%69,009
100.0
6,279
9.1
6,271
9.1

Fiscal 2020
(Year ended
September 30, 2020)
Amount%66,689
100.0
4,553
6.8
4,978
7.5

ChangeAmount(2,320)(1,726)(1,293)%(3.4)(27.5)(20.6)

3,633

5.3

1,995

3.0

(1,637)(45.1)

81.02

‒

44.37

‒

‒

‒

Operating Results for the Fiscal Year Ended September 30, 2020
Forward-looking statements contained in this document are based on the judgment of operating results as of September 30,
2020.
In the pharmaceutical and medical devices industry, which has a major bearing on the consolidated operating results of the
EPS Group, profitability is decreasing due to the promotion of the use of generic drugs and NHI drug price revisions under
the Japanese government's policy of reducing social security expenditures, among other factors. In addition, environmental
changes such as the increasing difficulty of clinical trials are occurring because the fields where pharmaceuticals aredeveloped are shifting from lifestyle-related diseases to cancers, disorders of the central nervous system and rare diseases.
Moreover, there is a growing market presence of biotech ventures and academic institutions specializing in regenerative
medicine, groundbreaking drug discovery technologies and therapeutic fields, as well as characteristic small- and mediumsized manufacturers. In this environment, companies are seeking to ensure profitability by achieving greater economies ofscale and industry realignment, such as acquisitions and business alliances of companies that develop ground-breaking
new drugs. They are also attempting a variety of cost-cutting measures, such as streamlining research and development
activities and shortening development lead times through the application of cutting-edge technologies and personnel
reduction.
Under these circumstances, in the market for outsourcing services for the healthcare industry, which spans the developmentof pharmaceutical and medical devices to post-market surveillance, there has been growing demand from customers suchas pharmaceutical companies and medical device manufacturers for outsourcing companies to accelerate the development
and improve the quality of new drugs and to initiate reforms for a flexible cost structure through personnel reduction andoutsourcing in an effort to enhance their competitiveness.
In the year ended September 30, 2020, a decrease in the number of patients visiting medical institutions due to the infection
risk of COVID-19 impacted the progress of clinical trials, including delays in acquiring clinical trial patients. In addition,it has become difficult to conduct activities as in the past due to the imposition of restrictions on visits to medical
institutions to prevent the spread of COVID-19. The EPS Group has addressed this challenge by putting its operations
online and introducing remote work.
In the Domestic Business, the conclusion of a highly profitable monitoring project and a large-scale clinical trial in theprevious fiscal year had an impact in the Contract Research Organization (CRO) Business. The spread of COVID-19 also
impacted delays in new project starts and a decrease in clinical trial patients visiting hospitals, centering on the CRO andSite Management Organization (SMO) businesses.
In the Overseas Business, while shipments in the EKISHIN (China) Business were affected by the temporary suspensionof manufacturing lines stemming from China’s Revised Drug Administration Law, there was an impact on the Global
Research Business from the conclusion of a large-scale project in the previous fiscal year. As a result, consolidated net
2sales came to ¥66,689 million, a decrease of 3.4% year on year.
Consolidated operating income was ¥4,553 million, a decrease of 27.5% year on year, affected by the fall in net sales
despite the EPS Group's efforts to reduce costs. Profit attributable to owners of parent was ¥1,995 million, a decrease of
45.1% year on year, mainly due to the posting of impairment loss of goodwill and loss on valuation of investment securities.
In the forecast of operating results announced on August 4, 2020, the Company was concerned about the impact of thesecond wave of COVID-19, but consolidated net sales exceeded the revised forecast because the Company was able tocontinue clinical trials while taking measures against COVID-19, in addition to less-than-expected negative effects suchas the cancellation and interruption of clinical trials, restrictions on visits to medical institutions, a decrease in clinical trial
patients visiting hospitals and the termination of contracts of Contract Medical Representative (CMR). In addition,
consolidated operating income and consolidated recurring profit were greater than the forecasts due to thorough cost
reduction, in addition to greater-than-expected consolidated net sales.
Operational segment is outlined as follows.
Segment Overview
The Group primarily operates businesses in the following five segments (three domestic segments and two overseas
segments).
(¥ million)
Fiscal 2019(Year ended
September 30, 2019)
31,234
5,197
14,339
1,679
9,399
489
4,848
258
11,543381

Net sales
Operating income
Net sales
SMO
Operating income
Net sales
CSO
Operating income
Net sales
Global Research
Operating income
Net sales
EKISHIN(China) Business Operating income (loss)
CRO

Domestic
Business

Overseas
Business

Fiscal 2020
(Year ended
September 30, 2020)
30,504
4,360
13,2201,541
11,424
849
3,540
41
8,613
(210)

Change(730)(837)(1,119)
(138)
2,024
359
(1,307)(217)(2,930)(592)

EPS Associates Co., Ltd., which was in the CRO Business, merged with EPS International Holdings Co., Ltd. in the Global
Research Business on October 1, 2019. For the year-on-year comparisons above, consolidated figures for the previous
fiscal year have been reclassified into their business segments following the merger.
1) CRO BusinessIn the CRO Business, the Group conducts operations mainly based on the following structure:a. Contract-based clinical trials and post-marketing surveillance (PMS) services: EPS Corporation and EP Mediate Co.,Ltd.
b. Clinical research services: EP-CRSU Co., Ltd.
c. Pharmaceutical and medical IT services: EP-Techno Co., Ltd.
In this business, aiming for establishment of global CRO operation, the Group restructured domestic CRO in the fiscal
year under review and expanded academic alliances and digitalization to innovate the business.
Looking at performance in the CRO Business by service, contract-based services including clinical trials and PMS services
had brisk inquiries and alliance contracts with business partners made solid progress. Therefore, utilization rates remained
high. In the year-on-year comparison of performance in the CRO Business, sales and income declined mainly due to delaysin the progress of clinical trials from the impact of COVID-19, while in monitoring, high-revenue -generating projects
wrapping up in the previous fiscal year, the impact in the first half of the fiscal year under review of sluggish inquiries in3the second half of the previous fiscal year, and a decrease in highly profitable large projects as well as the reduced scaleof small contract-based projects.
In clinical research services, although net sales decreased year on year due to the conclusion of a large-scale clinical trial
in the previous fiscal year, joint research has started with the National Cancer Center and inquiries about clinical researchremained strong. As a result, operating income increased partly supported by the limited impact of the COVID-19
pandemic and the effect of cost reduction.
In pharmaceutical and medical IT services, the Group is promoting digitization in the CRO business. In product sales forclinical studies and PMS services, net sales declined due to slow progress in capturing orders. In sales operations, theGroup was actively promoting the academic alliances.
As a result, net sales were ¥30,504 million, a decrease of ¥730 million, or 2.3%, year on year, and operating income was¥4,360 million, a decrease of ¥837 million, or 16.1%, year on year.
2) SMO Business
The SMO Business is undertaken by EP-SOGO Co., Ltd.
In this business, the Group is striving to secure orders through proposal-based sales activities targeting clinical trial
sponsors and alliance contracts, and actively executing regional strategies such as concentrating resources on preferredfacilities with good patient recruitment rates, among others.
In terms of operations, the Group is bolstering education focused on specialties such as cancer, mental illness, anddermatology while promoting the appropriate placement of personnel such as clinical research coordinators (CRCs), sitemanagement associates (SMAs) and the Institutional Review Board's remote review system, in consideration of themaintenance of internal frameworks and regionality. The Group is working to deploy a new business model to rapidly
recruit clinical trial participants and reduce clinical trial costs by promoting a collaborative project between the CRO
Business and the Global Research Business, which was launched in the previous fiscal year.
Comparing with the same period from the previous year, the impact of the COVID-19 pandemic has delayed progress inclinical trials due to postponements in starting clinical trials and a decrease in clinical trial patients visiting hospitals. Whileclinical trial patients visiting hospitals was recovering gradually due to the lifting of the state of emergency, it did not
return to the previous level, having an impact on sales and income.
As a result, net sales were ¥13,220 million, a decrease of ¥1,119 million, or 7.8%, year on year. Operating income
decreased ¥138 million, or 8.3%, year on year, to ¥1,541 million.
3) CSO Business
The CSO Business is undertaken by EP-PharmaLine Co., Ltd., EP-Force Co., Ltd., and ES-Link Co., Ltd.
In the CMR business, the Group aggregated the EP-PharmaLine Co., Ltd. Contract MR Division to EP-Force Co., Ltd. inJune 2020 for the purpose of responding rapidly to customer needs and efficient and agile business operations. CMR
business performance was broadly in line with forecasts because the decline in demand for CMRs spurred by thepharmaceutical industry’s ongoing MR reductions in recent years decreased, along with inquiries on a recovery trajectoryas well as the Group's efforts to minimize the impact of the COVID-19 pandemic by maintaining activities with remote
work and successfully starting new projects.
The medical call center business, which handles call center operations for medical facilities, exceeded forecasts due partly
to a larger-than-usual number of orders in contracts for highly profitable spot projects and maintaining operations under
the impact of the COVID-19 pandemic by switching some contact center duties to work from home.
Academic materials production business performance surpassed forecasts as progress was made shifting from variable,
volume-based charges to contracts with fixed monthly fees and earnings stabilized. In addition, the BPO business wasbroadly in line with forecasts.
As a result, net sales were ¥11,424 million, an increase of ¥2,024 million, or 21.5%, year on year. Operating income was¥849 million, an increase of ¥359 million, or 73.3%, year on year.
4) Global Research Business
4

The Global Research Business comprises EPS International Holdings Co., Ltd. and its overseas group companies. Thisbusiness, which encompasses the CRO business in China, is primarily carried out in the Asia-Pacific region. In this business,
EPS Associates Co., Ltd., which was in the CRO Business, merged with EPS International Holdings Co., Ltd. in the Global
Research Business in October 2019 to build a firm foundation that responds quickly to global clinical trials.
Orders from overseas for trials within Japan experienced a significant decrease in sales and income, owing to the conclusionof a large-scale project in the previous fiscal year, suspension of an existing project, and sluggish new orders due tointensified competition with global CROs.
In the Asia-Pacific region, the Group continues to strengthen the business base and is focusing on orders for projects ineach country. In the CRO business in China, profitability improved as the Group worked to strengthen operations,reflecting rising inquiries in tandem with market expansion.
As a result, net sales were ¥3,540 million, a decrease of ¥1,307 million, or 27.0%, year on year. Operating income cameto ¥41 million, a decrease of ¥217 million, or 84.1%, year on year.
5) EKISHIN (China) Business
The EKISHIN (China) Business comprises the two regional holding companies EPS EKISHIN Co., Ltd. and EPS (China)
Co., Ltd., and related overseas Group companies.
In this business, under a solid capital and business partnership with SUZUKEN Co., Ltd., the Group provides productrelated services centered on pharmaceuticals and medical devices, international trade related services and peripheral
support services. The Group is working to expand earnings as a healthcare-focused trading company in the healthcare
industry, linking Japan and China.
In product-related services, sales and income declined in earnings-driving pharmaceutical manufacturing and sales. Thisis due to the impact from sweeping inspections and examinations being carried out at existing manufacturers accompanying
the announcement of revisions to China’s Drug Administration Law in August 2019, as well as temporary suspension of
manufacturing lines at a Group company in China. Although the affected manufacturing lines resumed operations in
December 2019, logistics and sales operations were affected by COVID-19. In China, the impact of declining demand was
also felt from the effects of an ongoing decrease in the number of patients visiting medical institutions.
As a result, net sales were ¥8,613 million, a decrease of ¥2,930 million, or 25.4%, year on year, and operating losses were¥210 million (¥381 million in operating income posted in the same period of the previous fiscal year).
(2) Summary of Financial Position as of September 30, 2020
Status of Assets, Liabilities and Net Assets
Changes in the Group's financial position during the fiscal year under review, compared with the previous fiscal year-end,
are outlined as follows:
Current assets amounted to ¥45,909 million as of September 30, 2020, an increase of ¥5,075 million from the previous
fiscal year-end. The main contributing factors were increases of ¥4,844 million in cash and deposits and ¥287 million inwork in process. These increases were partly offset by a decrease of ¥479 million in marketable securities. Fixed assets
amounted to ¥24,548 million, a decrease of ¥1,183 million from the previous fiscal year-end. The main contributing factors
were decreases of ¥778 million in goodwill, ¥1,096 million in investment securities and ¥1,384 million in other underinvestments and other assets. These decreases were partly offset by increases of ¥311 million in buildings, ¥502 million inland, ¥765 million in construction in progress and ¥447 million in other intangible fixed assets. As a result, total assets
stood at ¥70,458 million, an increase of ¥3,891 million from the previous fiscal year-end.
In terms of liabilities, total liabilities amounted to ¥23,518 million as of September 30, 2020, an increase of ¥3,289 million
compared with the previous fiscal year-end. This mainly reflected increases of ¥2,200 million short-term loans, ¥801
million in income taxes payable, ¥502 million in allowance for employees’ bonuses and ¥1,326 million in other current
liabilities. These increases were partly offset by decreases of ¥522 million in accounts payable - other, ¥459 million in
long-term debt, ¥285 million in allowance for directors’ and corporate auditors’ retirement benefits and ¥379 million in
net defined benefit liability.
In terms of net assets, total net assets amounted to ¥46,939 million as of September 30, 2020, an increase of ¥602 million
5from the previous fiscal year-end. This mainly reflected an increase of ¥378 million in retained earnings and a decrease of¥962 million in treasury common stock, at cost. These factors were partly offset by decreases of ¥286 million in additional
paid-in capital and ¥643 million in valuation difference on available-for-sale securities.
(3) Summary of Cash Flows for the Fiscal Year Ended September 30, 2020
In the fiscal year ended September 30, 2020, net cash provided by operating activities was ¥5,847 million, net cash used
in investing activities was ¥2,783 million and net cash provided by financing activities was ¥554 million. These cash flows
were adjusted for the effect of exchange rate change in cash and cash equivalents of ¥73 million. As a result, cash and cash
equivalents on September 30, 2020 stood at ¥22,833 million, an increase of ¥3,692 million from the previous fiscal yearend.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥5,847 million, an increase of ¥121 million from the previous fiscal year.
The main reasons for this increase in net cash provided by operating activities were an increase in provision for bonusesof ¥500 million (an increase of ¥304 million year on year), a decrease in inventories of ¥161 million (a decrease of ¥167
million year on year), other cash provided by operating activities of ¥555 million (an increase of ¥1,013 million year onyear), proceeds from subsidy income of ¥388 million (an increase of ¥350 million year on year) and income taxes paid of¥2,138 million (a decrease of ¥603 million year on year), as well as profit before income taxes of ¥4,409 million (a decreaseof ¥2,450 million year on year) and a decrease in notes and accounts payable – trade of ¥85 million (a decrease of ¥280
million year on year).
(Cash flows from investing activities)
Net cash used in investing activities was ¥2,783 million, an increase of ¥1,826 million year on year.
The main reasons for this increase in net cash used in investing activities were the purchase of non-current assets ¥2,327
million (an increase of ¥711 million year on year), the purchase of investment securities of ¥855 million (an increase of¥394 million year on year), proceeds from sales of investment securities of ¥189 million (a decrease of ¥1,877 million year
on year), short-term loan advances of ¥815 million (an increase of ¥734 million year on year) and the purchase of sharesof subsidiaries resulting in a change in scope of consolidation of ¥217 million (not recorded in the previous fiscal year).
Other factors were proceeds from the cancellation of insurance funds of ¥1,627 million (an increase of ¥1,410 million year
on year) and the purchase of shares of subsidiaries and associates of ¥497 million (not recorded in the fiscal year underreview).
(Cash flows from financing activities)
Net cash provided by financing activities was ¥554 million, an increase of ¥4,878 million year on year.
The main factors behind the increase in cash provided by financing activities were an increase in short-term loans payableof ¥10,200 million (an increase of ¥8,100 million year on year) and proceeds from sales of treasury shares of ¥1,916 million(not recorded in the previous fiscal year). These increases were partially offset by a decrease in short-term loans payableof ¥8,000 million (an increase of ¥7,100 million year on year).
(4) Outlook
The EPS Group focuses on strengthening Group management capabilities across both the horizontal and verticaldimensions of the organization by encouraging autonomous activities in each segment and streamlining management
operations, while strengthening its business operation functions as One EPS. In this way, we aim to realize three aspectsof growth: base growth, sound growth, and sustainable growth.
In terms of business, the Group will expand and aggressively promote necessary upfront investments from a Groupwide
perspective. Specific measures including the creation of added value through new businesses and new products andservices, exploration of M&A opportunities with a view toward business synergies, incubation investments to create new
businesses, the promotion of academic-related business and use of the Group's specialists.
6In terms of management, the Company will support, manage and lead each segment in identifying and understanding issues
in its organization, business structure and management by strengthening the controlling function to produce synergistic
effects under the “One EPS” concept. In addition, the Group will unify its administrative management to seek total
optimization more organically. The Group will also take the initiative in its efforts to address issues such as workstylereforms and organizational activation. Furthermore, the Group will develop human resource measures across the Group,
strengthen development of management human resources and constantly activate the organization.
The measures for each business segment are as follows:
1) CRO BusinessIn the CRO business, the Group will aim to realize solid base growth underpinned by its existing business models. At thesame time, it will examine new business models in response to changes in the business environment and provide services
using new technologies such as IT. The Group will also enhance its sales capabilities and work to maximize profit byrigorously enforcing cost controls and promoting operating efficiency.
In clinical trials and PMS services, the Group will take proactive steps to expand the range of new services. It includes thepromotion of virtual clinical trials through bolstering its competitiveness by differentiating itself from competitors withdigitalization, strengthening monitoring, utilizing its capacity to provide high-quality data science services, improving its
capabilities to respond to globalization, and enhancing its specialization and therapeutic fields.
In development support for medical devices and the development of functional food, which have potential for growth, theGroup will actively promote business expansion, taking advantage of its track record and knowledge cultivated in clinical
trials.
On the earnings front, the Group will rebuild and improve services for which needs have declined and services with low
profitability.
In clinical research services, the Group will strengthen its system for diversified clinical tests, enhance support services
from the upstream process of clinical trials and strengthen its sales capabilities in research, investigator-initiated clinical
trials and database research.
2) SMO BusinessIn the SMO Business, the Group will leverage its industry-leading business scale while making effective use of resourcesby executing regional and facility strategies, with the aim of increasing its market share by focusing on areas of highcustomer need, such as oncology, dermatology, and neurology, and by responding to growing needs for support to clinical
trial centers from large medical institutions. In addition, as a way to make use of resources in cooperation with the CRO
business, clinical research associates (CRAs) that have received training in CRO are assigned to medical facilities as sitedata managers (SDMs) and are designated to perform tasks such as carefully examining clinical trials data and data entry
for systems, so that clinical research coordinators (CRCs) will be able to concentrate on responding to clinical trial patientsand medical staff, recruiting patients and enhancing efficiency. In a new approach to IT, the Group will achieve higher
customer satisfaction by expanding the efficiency of clinical trials services, computerizing central IRB and selling a clinicalstudy solution for medical institutions.
3) CSO BusinessIn the CSO business, the Group will develop new services by sensitively capturing needs from and changes inpharmaceutical companies and medical device manufacturers.
In the existing services, the Group will work to differentiate itself from competitors by integrating the Group’s wide rangeof unique services into traditional CSO services such as CMR and call center operations. In Drug Information (DI) services,
the Group will continue improving the quality of its highly specialized operators, while working to enhance efficiency byraising digital transformation (DX) in addition to advancing communication with clients. In the Contract MR Division, theGroup will transition from the assignment of contact-based MRs to multi-channel promotion, integrating the real anddigital, and improving the quality of MRs at the same time.
7In new services, the Group will expand areas such as the commercialization of remote PMS monitors in PMS services andthe strengthening of field service engineers in medical devices services. The Group will also expand contract-based
services leveraging its strengths in academic materials production, education and training services and its specialization in
the field of oncology.
At ES-Link Co., Ltd., a joint venture established with SUZUKEN Co., Ltd., the Company will combine its advanced
specialization in virtual MR with SUZUKEN’s driving power to promote distribution management as a measure in
response to new needs related to promotion services and orphan drugs, as well as medical devices.
4) Global Research BusinessIn the Global Research Business, the Group will proceed to build a solid business base in Japan, Asia and China with theaim of becoming a CRO leader in the Asia-Pacific region. For that purpose, the Group will expand contract-based services
for inbound projects from Europe, the United States and China as well as outbound projects from Japan to China and Asia
by reorganizing CROs in China and Asia and enhancing collaboration with overseas CROs, such as Beijing Global
Pharmaceutical Research Co., Ltd. (G&P), a Chinese CRO that the Company acquired in June 2020, Hangzhou Tigermed
Consulting Co., Ltd. and George Clinical Pty Ltd., as well as CROs in Japan. The Group will also aim to achieve stable
growth in international joint trials by providing the required high-quality products (services) and by strengthening humanresource management. In terms of earnings, the Group will reduce costs by reviewing cost of sales and selling, general andadministrative expenses, including expenses at bases in Japan and overseas.
5) EKISHIN (China) BusinessIn the EKISHIN (China) Business, the Group will proceed with the transition toward the next stage by seeking an alliancewith new partners based on its existing businesses as a healthcare-focused trading company in the healthcare industry
linking Japan and China.
The EKISHIN (China) Business comprises four core businesses, specifically the products-related business, the specialized
services-related business, the international trading-related business, and the peripheral support-related business. At thesame time, the Group will ensure sustained operating performance through stable management of its existing corebusinesses, while using its internal resources and those of its partner companies. In product-related services, the Group
improved the production process for interferon manufacturing at Shanghai Hua Xin High Biotechnology Co., Ltd. The
Group will promote business development centered on the cultivation of sales markets and pioneering of new markets, andthe introduction of new products.
Forecast of Operating Results for Fiscal 2021 (October 1, 2020 to September 30, 2021)
Fiscal 2021 will be the final year of the medium-term business plan. In the revised forecast announced on November 7,
2019, the Group set consolidated net sales and consolidated operating income at ¥80 billion and ¥8 billion, respectively.
However, given the external environment, including the impact of the COVID-19 pandemic, the Group has set the forecast
as shown below.
The impact of the COVID-19 pandemic is formulated on the assumption that developments such as progress in clinical
trials and regulations on visits to medical institutions will remain at the current level.
Fiscal 2021
Consolidated performance forecast
Net sales
Operating income
Recurring profit
Profit attributable to owners of parent

Amount (¥ million)
69,800
4,800
5,000
2,600

8

Year-on-year change
(%)
4.7
5.4
0.4
30.3

(Segment Outlook)
Forecasts of net sales for each segment include inter-segment transactions.
Net sales (¥ million)
CRO
SMO
CSO
Global Research
EKISHIN (China) Business

31,40013,90011,6002,900
8,800Year-on-year change
(%)
2.9
5.1
1.5
(18.1)
2.2(5) Risk Information Concerning COVID-19
The Group supports pharmaceutical development, mainly for pharmaceutical companies, and conducts clinical trials at
medical facilities for new drug development. Clinical trials require the participation of subjects (patients).
As a basic principle, the Group makes ensuring the safety of employees, clinical trial patients, medical facility personnel,
and clients a top priority in business operations. However, the Group believes there are risks such as those noted below for
the current COVID-19 situation affecting its financial position, operating results, and other matters.
Once it has recognized a risk, the Group’s policy is to work to avoid or mitigate that risk. However, the Group could be
affected substantially by a variety of factors that could arise going forward.
Forward-looking statements contained in this document are based on a judgment as of the last day of the fiscal year ended
September 30, 2020.
1) Risk of employees contracting COVID-19
Because much of the Group’s business entails direct work with medical institutions, we are exercising extreme care in
taking steps to prevent employees from contracting COVID-19. However, in the event that it becomes difficult for a long
period of time to continue operations, owing to events such as Group employees contracting the virus and an inability tosecure alternative personnel, the Group’s financial position, operating results, and other matters could be affected.
2) Risk of clients suspending or postponing development due to COVID-19
In the event that there is a prolonged situation wherein clients postpone or suspend activities such as clinical trials that areplanned or underway with a view to prevent the spread of COVID-19, the Group’s financial position, operating results,
and other matters could be affected.
3) Risk of medical institutions becoming unable to conduct clinical trials and so forth due to COVID-19
In the event that medical facilities become unable to conduct clinical trials for a long period of time due to the status of the
COVID-19 outbreak, the Group’s financial position, operating results, and other matters could be affected.

2. Basic Policy Regarding Selection of Accounting Standards
The EPS Group prepares its consolidated financial statements based on Japanese accounting standards, taking into
consideration the need to ensure the comparability of the consolidated financial statements between different accounting
periods and companies.
The Group intends to appropriately address the issue of adopting International Financial Reporting Standards (IFRS) basedon the consideration of a variety of conditions in Japan and overseas.

9

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(¥ million)

Fiscal 2019
As of September 30, 2019
AssetsCurrent assets
Cash and time deposits
Notes and accounts receivable - tradeMarketable securities
Merchandise and finished goods
Work in process
Other current assets
Less: Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Furniture and fixtures
Accumulated depreciation
Furniture and fixtures, net

Fiscal 2020
As of September 30, 2020

17,283
16,125
1,858
992
1,464
3,248
(137)

22,127
16,313
1,378
1,002
1,752
3,494
(159)

40,83445,9094,623(1,792)

5,102(1,959)

2,831

3,142

2,004
(1,352)

2,112(1,441)

652

670

Land

1,608

2,110

Construction in progress
Other
Accumulated depreciation

138
845
(417)

903
957
(539)

428

417

5,658

7,244

Intangible fixed assets
Goodwill
Other intangible fixed assets

6,762
991

5,984
1,438

Total intangible fixed assets

7,754

7,422

Investments and other assets
Investment securities
Long-term loans receivable
Lease and guarantee deposits
Deferred tax assets
Net defined benefit asset
Other investments and other assets
Less: Allowance for doubtful accounts

4,786
59
2,067
2,697
160
2,575
(27)

3,690
6
1,984
2,799
209
1,190
‒

Total investments and other assets

12,3199,880

25,732

24,54866,56670,458Other, net
Total property, plant and equipment

Total fixed assets
Total assets

10(¥ million)

Fiscal 2019
As of September 30, 2019

Fiscal 2020
As of September 30, 2020

648
1,265
449
4,946
1,302
3,051
242
4,084

753
3,465
209
4,423
2,104
3,554
296
5,411

15,991

20,219

424

204

395

110

2,146
614
656

1,767
580
636

4,238

3,299

20,22923,518

Net assets
Shareholders’ equity
Capital stock
Additional paid-in capital
Retained earnings
Treasury common stock, at cost

3,888
13,66928,628(3,765)

3,888
13,38229,007(2,802)

Total shareholders’ equity

42,42043,475

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

808
544
(470)

164
559
(93)

Total accumulated other comprehensive income

881

630

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Allowance for employees’ bonuses
Provision for loss on order received
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Allowance for directors’ and corporate auditors’
retirement benefits
Net defined benefit liability
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities

Non-controlling interests

3,035

2,833

Total net assets

46,33746,93966,56670,458

Total liabilities and net assets

11(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Promotion expenses
Directors’ compensations
Salaries and bonuses
Provision for bonuses
Provision for directors’ retirement benefits
Retirement benefit expenses
Rent expenses
Commission fee
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on insurance cancellation
Subsidy income
Dividend income
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss due to COVID-19
Other
Total non-operating expenses
Recurring profit
Extraordinary gains
Gain on sales of investment securities
Surrender value of insurance
Gain on sales of shares of subsidiaries and associates
Gain on step acquisitions
Total extraordinary gains
Extraordinary losses
Loss on valuation of investment securities
Loss on transition of retirement benefit plans
Impairment loss
Business reorganization losses
Total extraordinary losses
Profit before income taxes
Income taxes
Income tax adjustment
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

12(¥ million)

Fiscal 2019
(October 1, 2018
to September 30, 2019)69,00944,412
24,596

Fiscal 2020
(October 1, 2019
to September 30, 2020)
66,68946,06020,628

5,063
592
4,928
579
72
134
921
536
5,487
18,316
6,279

2,743
654
5,140
566
16
180
1,026
574
5,171
16,075
4,553

110
102
37
55
39
345

108
66
388
59
260
884

16
248
‒
89
353
6,271

16
‒
377
64
458
4,978

661
‒
41
198
901

126
671
‒
‒
798

228
84
‒
‒
313
6,859
2,789
93
2,882
3,977
344
3,633

442
‒
650
274
1,367
4,409
2,939
(259)
2,680
1,728
(266)
1,995

Consolidated Statements of Comprehensive Income(¥ million)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

13

Fiscal 2019
(October 1, 2018
to September 30, 2019)
3,977

Fiscal 2020
(October 1, 2019
to September 30, 2020)
1,728

(204)
(586)
(460)

(643)
74
378

0

1

(1,250)

(189)

2,727

1,539

2,650

1,745

77

(205)

(3) Consolidated Statements of Changes in Shareholders Equity
Fiscal 2019 (From October 1, 2018 to September 30, 2019)(¥ million)
Shareholders’ equity

Capital stock
Balance at beginning ofcurrent period

Additional
paid-in capital

Retained earnings

Treasury shares

Total shareholders’equity13,601

26,347(2,167)

41,670

1,325

1,414

3,888

Changes of items during
periodChange by share exchange

88

Changes in equity inconsolidated subsidiaries

(37)

(37)

Dividends of surplus(1,352)(1,352)

Profit attributable toowners of parent

3,633

3,633

Purchase of treasury
shares(2,923)

Change of scope of
consolidation

15(2,923)15

Net changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
period

–

67

2,280

(1,598)

750

3,888

13,66928,628(3,765)42,420Noncontrollinginterests

Total net assets

3,209

46,743

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

1,012

861

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
income(9)

1,864Changes of items during
periodChange by share exchange

1,414

Changes in equity inconsolidated subsidiaries(37)

Dividends of surplus(1,352)

Profit attributable toowners of parent

3,633

Purchase of treasury
shares(2,923)

Change of scope of
consolidation

15

Net changes of items otherthan shareholders’ equity

(204)

(317)

(461)

(983)

(173)

(1,156)

Total changes of items
during period

(204)

(317)

(461)

(983)

(173)

(406)

Balance at end of current
period

808

544

(470)

881

3,035

46,337

14

Fiscal 2020 (From October 1, 2019 to September 30, 2020)(¥ million)
Shareholders’ equity

Capital stock
Balance at beginning ofcurrent period

Additional
paid-in capital

Retained earnings

Treasury shares

Total shareholders’equity13,66928,628(3,765)42,4203,888

Changes of items during
periodChanges in equity inconsolidated subsidiaries

1212

Dividends of surplus(1,121)(1,121)

Profit attributable toowners of parent

1,995

1,995

Purchase of treasury
shares(1,810)(1,810)

2,773

1,979

Disposal of treasury shares(793)

Transfer of loss on
disposal of treasury shares

494

(494)

–

(286)

378

962

1,054

3,888

13,38229,007(2,802)

43,475

Noncontrollinginterests

Total net assets

3,035

46,337–

Net changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
periodAccumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

808

544

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
income(470)

881

Changes of items during
periodChanges in equity inconsolidated subsidiaries

12

Dividends of surplus(1,121)

Profit attributable toowners of parent

1,995

Purchase of treasury
shares(1,810)

Disposal of treasury shares

1,979Transfer of loss on
disposal of treasury shares–

Net changes of items otherthan shareholders’ equity

(643)

15

377

(250)

(202)

(452)

Total changes of items
during period

(643)

15

377

(250)

(202)

602

Balance at end of current
period

164

559

(93)

630

2,833

46,93915

(4) Consolidated Statements of Cash Flow(¥ million)

Fiscal 2019
(October 1, 2018
to September 30, 2019)

Fiscal 2020
(October 1, 2019
to September 30, 2020)

6,859
801
‒
1,207
196
242

4,409
1,000
650
1,219
500
(1)

(87)

(285)

(165)
16
‒
‒
‒
(661)
228
84
(37)
(102)
(198)

(168)
16
(671)
274
377
(126)
442
‒
(388)
(66)
‒

(41)

‒

177

2

(6)
194
32
(458)

161
(85)
(370)
555

Subtotal

8,281

7,446

Interest and dividend income received
Interest expenses paid
Proceeds from subsidy income
Income taxes paid

165
(18)
37
(2,741)

168
(17)
388
(2,138)Net cash provided by (used in) operating activities

5,725

5,847

Cash flow from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ retirement
benefits
Interest and dividend income
Interest expenses
Surrender value of insurance
Business reorganization losses
Loss due to COVID-19
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on transition of retirement benefit plans
Subsidy income
Loss (gain) on cancellation of insurance contract
Gain on step acquisitions
Loss (gain) on sale of investments in capital of subsidiaries
and associates
Decrease (increase) in notes and accounts receivable –trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other, net

16(¥ million)

Cash flow from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of investment securities
Short-term loan advances
Payments for lease and guarantee deposits
Proceeds from cancellation of insurance funds
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of investments in capital of subsidiaries resulting
in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Repayments of short-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from sales of treasury shares
Proceeds from share issuance to non-controllingshareholders
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents by share exchanges
Cash and cash equivalents at end of period

17

Fiscal 2019
(October 1, 2018
to September 30, 2019)

Fiscal 2020
(October 1, 2019
to September 30, 2020)

(80)
528
(1,309)
(306)
(460)
(497)
2,066
(81)
(160)
217

(0)
‒
(1,592)
(735)
(855)
189
(815)
(219)
1,627

(663)

(701)

‒

6

‒

(217)

(210)

530

(956)

(2,783)

2,100
(900)
(1,231)(2,790)‒

10,200(8,000)(489)(1,821)
1,916

14

‒

(1,352)(19)(1,119)
(11)

(48)

‒

(97)
(4,324)

(119)
554

(379)

73

64
18,753323
19,141

3,692
19,141‒
22,833

(5) Notes Concerning Consolidated Financial Statements(Notes Concerning the Going Concern Assumption)
None(Segment Information)[Segment Information]
1. Summary of Reportable Segment(1) Method of Determining Reportable Segments
The EPS Group’s reportable segments are components of the Group for which discrete financial information is available
and which the Board of Directors reviews regularly to make decisions about the allocation of resources and to assessbusiness performance.
The EPS Group operates in industries related to pharmaceuticals development, primarily serving pharmaceuticalcompanies worldwide. The Group provides various services incidental to various stages of pharmaceuticals development,along with services associated with healthcare, pharmaceuticals, BPO and related areas in China. The Group has fivereportable segments: the CRO Business, SMO Business, CSO Business, Global Research Business, and EKISHIN(China) Business.
(2) Types of services in each reportable segment
In the CRO Business, the Group provides various specialized services concerning the operation and management ofclinical studies based on service contracts with pharmaceutical companies and other entities in connection with theimplementation of clinical studies (including post-marketing surveillance (PMS) and studies) in Japan.
In the SMO Business, the Group primarily provides specialized services centered on the assignment of CRCs (ClinicalResearch Coordinators), who assist medical institutions with the implementation of clinical trials, to medical institutions
and the provision of clinical trials administrative support and related services.
In the CSO Business, the Group is contracted by pharmaceutical companies to provide services related to the sale ofpharmaceuticals. The Group primarily provides contract-based medical representative (MR) services and undertakes theassignment of MRs. Their main duties are to provide information on the quality, efficacy, safety and other attributes ofpharmaceuticals and to collect and communicate information on side effects and other matters to medical professionals,
for the purpose of ensuring the proper use and widespread adoption of pharmaceuticals. In addition, the Group provides
pharmaceutical-related information and support services.
In the Global Research Business, the Group provides a variety of services in connection with the implementation ofclinical studies (including post-market surveillance (PMS) services and studies) overseas, primarily in Asia.
In the EKISHIN (China) Business, the Group mainly provides optimal business solutions in China in the healthcare field,
including the research, development, manufacture and sales of pharmaceuticals, as well as the manufacture and sales of
medical devices.
2. Information Concerning the Calculation Method for the Amounts of Net Sales, Profit or Loss, by Reportable Segment
The accounting treatment method for reportable segments is largely the same as the accounting treatment methods used in
the preparation of the Consolidated Financial Statements.
The segment operating income is based on the operating income.
Inter-segment net sales are generally based on reasonable transaction prices.

18

3. Information Concerning the Amounts of Net Sales, Profit or Loss, by Reportable Segment
Fiscal 2019 (From October 1, 2018 to September 30, 2019)(¥ million)
Amountrecorded on
Adjustment
consolidated(Note 1)
financialstatements

CRO

SMO

CSO

GlobalResearch
Business

29,206

14,292

9,264

4,511

11,504229

69,009–69,009

2,028

47

135

336

38

1,762

4,349

(4,349)–Total

31,234

14,339

9,399

4,848

11,543

1,992

73,358(4,349)69,009Segment operating
income

5,197

1,679

489

258

381

46

8,054

(1,774)

6,279

Net sales
Sales to outside
customers
Inter-segment
sales and transfers

EKISHIN(China)Business

OthersTotal

Note:1. Eliminations/Corporate for operating income of ¥(1,774) million includes intersegment transactions of ¥9 million
and non- attributable corporate expenses not distributed to each segment of ¥(1,784) million. The main corporate
expenses comprise expenses related to the Company (the holding company).
Fiscal 2020 (From October 1, 2019 to September 30, 2020)(¥ million)
Amountrecorded on
Adjustment
consolidated(Note 1)
financialstatements

CRO

SMO

CSO

GlobalResearch
Business

29,12813,192

11,359

3,342

8,594

1,071

66,689–66,689

1,376

28

64

197

18

1,728

3,414

(3,414)–

Total

30,504

13,22011,424

3,540

8,613

2,800

70,103(3,414)

66,689Segment operating
income

4,360

1,541

849

41

(210)

30

6,611

(2,058)4,553

Net sales
Sales to outside
customers
Inter-segment
sales and transfers

EKISHIN(China)Business

Others

Total

Notes: 1. Eliminations/Corporate for operating income of ¥(2,058) million includes intersegment transactions of ¥(2)
million and non- attributable corporate expenses not distributed to each segment of ¥(2,056) million. The main
corporate expenses comprise expenses related to the Company (the holding company).
2. EPS Associates Co., Ltd. and EPS International Holdings Co., Ltd. merged on October 1, 2019. EPS Associates
Co., Ltd. was the surviving company in the merger by absorption upon which its name was changed to EPSInternational Holdings Co., Ltd. Accompanying this, it was moved from the CRO Business to the Global
Research Business segment. Segment information for the fiscal year ended September 30, 2019 is disclosed
based on the reporting segments for the fiscal year ended September 30, 2020.

19

(Per Share Information)
Fiscal 2019
Fiscal 2020
(October 1, 2018
(October 1, 2019
to September 30, 2019)
to September 30, 2020)
Net assets per share¥976.58¥1,000.16
Amount of profit per share¥81.02¥44.37
Notes: 1. The amounts of diluted profit per share for the fiscal years ended September 30, 2019 and 2020 are not disclosed
because there were no dilutive shares.
2. The basis for calculating the amount of profit per share is as follows:
Fiscal 2019
Fiscal 2020
(October 1, 2018
(October 1, 2019
to September 30, 2019)
to September 30, 2020)
Amount of profit per share

3,633

1,995

–

–

3,633

1,995

44,843,327

44,967,612

Profit attributable to owners of parent (¥ million)
Amount not attributable to shareholders of common
stock (¥ million)
Profit attributable to shareholders of common stock of
the parent (¥ million)
Average number of common shares during the period
Dilutive stocks that were not included in the calculationof profit per share after adjustment for dilution, because
they do not have a dilutive effect

—————

20

—————

4. Order(1) Orders Received
Fiscal 2020
(October 1, 2019 to September 30, 2020)
YoY (%)
Backlog
98.8
43,832
85.8
21,831
121.5
10,538
7.8
5,811
70.2
158
354.6
564
89.2
82,737(¥ million)

New orders
YoY (%)CRO Business
29,956
101.9
SMO Business
13,803102.9
CSO Business
11,812
104.5
Global Research Business
367
66.4
EKISHIN (China) Business
8,347
36.0
Others809
8,833.0
Total
65,09799.1
Notes: 1. Figures represent sales prices.
2. The above figures do not include consumption tax.
3. In the Global Research Business, orders received are being cancelled, in association with the discontinuation ofprojects, and this amount is included in new orders.
4. In the fiscal year under review, new orders and the backlog in others increased as a result of acquiring shares of
TTC Co., Ltd. and making it a subsidiary.

21