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 3, 2023

Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2024
(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 7, 2023
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, 2023 through June 30, 2023)(1) Consolidated Financial Results (cumulative)(Percentage figures indicate changes from the same period of the previous year.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Three months ended

Million yen%

Million yen%

Million yen%

Million yen%

June 30, 2023

18,304

12.3

2,970

(0.2)

3,355

12.8

2,915

12.1

June 30, 2022

16,305

20.3

2,977

137.8

2,974

42.9

2,601

84.6

Note: Comprehensive income: For the three months ended June 30, 2023: 2,622 million yen [(19.6)%]
For the three months ended June 30, 2022: 3,262 million yen [–%]

Basic earnings
per share

Diluted earnings
per share

Three months ended

Yen

Yen

June 30, 2023

66.14

–

June 30, 2022

58.71

–

(2) Consolidated Financial Position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

June 30, 2023

139,073

67,33348.2

1,522.29

March 31, 2023

135,034

65,68048.5

1,484.79

Reference: Equity: As of June 30, 2023: 67,103 million yen

As of March 31, 2023: 65,449 million yen

2. Dividends
Annual dividends
First quarter

Second quarter

Third quarter

Yen

Yen

Yen

Yen

Yen

Year ended
March 31, 2023

–

18.00

–

22.00

40.00

Year ending
March 31, 2024

–

22.00

–

22.00

44.00

Year ending
March 31, 2024 (Forecast)

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

Year-endTotal

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2024 (April 1, 2023 through March 31, 2024)(Percentage figures indicate changes from the same period of the previous year.)
Basic
Profit attributable toOperating profit
Ordinary profit
earnings perowners of parent
share

Net sales
Million yen%

Million yen%

Million yen%

Million yen%

Yen

First six months

35,000

3.8

5,500

(6.7)

5,500

6.1

4,500

12.5

102.09Full year

73,000

6.8

9,100

0.9

9,000

18.7

7,000

13.0

158.80Note: Revision of the financial forecast most recently announced: None

* Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2023 (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: None
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

(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, 2023: 53,119,190 shares
As of March 31, 2023: 53,119,190 shares
2) Number of shares of treasury shares as of the end of the term:
As of June 30, 2023: 9,038,982 shares
As of March 31, 2023: 9,038,982 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year):
For the three months ended June 30, 2023: 44,080,208 shares
For the three months ended June 30, 2022: 44,310,896 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(Segment information, etc.) ...........................................................................................................................9
3. Supplemental Information ..................................................................................................................................10(1) Sales results .................................................................................................................................................................10(2) Sales of major products and merchandise Consolidated .......................................................................................... 11(3) Status of pipeline of new drugs ..................................................................................................................................121

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, 2024 were 18,304 million yen (up12.3% from the same period of the previous fiscal year). At the same time, operating profit was 2,970 million
yen (down 0.2% from the same period of the previous fiscal year) due to the increase in expenditures such as
promotion expenses, research and development expenses, and depreciation. Ordinary profit was 3,355 million
yen (up 12.8% from the same period of the previous fiscal year) and profit attributable to owners of parent
was 2,915 million yen (up 12.1% from the same period of the previous fiscal year) as a result of recording
foreign exchange gains for the period under review despite recording foreign exchange losses from the sudden
appreciation of the Swiss franc during the previous period.
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 faced challenging circumstances, owing in part to the impact of the NHI drug price revision
implemented in April of 2023. Despite this, sales were steady overall as a result of strong performance inregions such as the UK due to growth in sales of Asacol 1600 mg in overseas markets. Sales of
DIFICLIR, a therapeutic agent for Clostridium difficile infections, achieved a significant sales growth as aresult of continuous aggressive investment of sales resources in overseas markets, which lead to asignificant increase in sales in France, Spain and the UK. In April 2023, we were transferred approval
from Astellas Pharma Inc. for the manufacturing and marketing of the drug in Japan and commenced its
sale (domestic sales name: Dafclir). However, sales of Entocort (domestic sales name: Zentacort), an
inflammatory bowel disease (IBD) therapeutic agent, struggled after the launch of generic drugs in certain
countries outside Japan. With regard to Ferinject, we are working to build the market, particularly in the
obstetrics and gynecology and gastroenterology fields.
As a result, net sales in the business amounted to 11,947 million yen (up 16.2% from the same period of
the previous fiscal year).
(ii) Consumer Healthcare Business
As for the Hepalyse range, our mainstay product, due to the relaxing of behavioral restrictions related to
the COVID-19 pandemic and recovery in the flow of people, sales of both the pharmaceutical Hepalyse
range and the Hepalyse W range for convenience stores increased. Sales of the Chondroitin range also
remained strong, due in part to aggressive advertising and promotional investments. Effort is being madeto increase awareness of the nutrient tonic Hi Jelly Granules EX that launched in October 2022 and toincrease its sales by utilizing various types of media.
As a result, net sales in the business amounted to 6,317 million yen (up 5.5% from the same period of theprevious fiscal year).
(iii) Other
Net sales in this segment amounted to 38 million yen (up 6.5% 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, 2024 were 139,073 million yen,
an increase of 4,039 million yen from the end of the previous fiscal year. Current assets increased 3,162
million yen to 51,365 million yen from the end of the previous fiscal year, and non-current assets increased
877 million yen to 87,708 million yen from the end of the previous fiscal year. Major changes in current assets
included an increase of 665 million yen in cash and deposits, an increase of 1,567 million yen in notes and2accounts receivable - trade, and an increase of 775 million yen in inventories such as merchandise andfinished goods. Main changes in non-current assets were an increase of 668 million yen in investments andother assets.
Total liabilities at the end of the quarter under review were 71,740 million yen, an increase of 2,386 million
yen from the end of the previous fiscal year. Current liabilities increased 5,283 million yen to 52,442 million
yen from the end of the previous fiscal year, and non-current liabilities decreased 2,897 million yen to 19,298
million yen from the end of the previous fiscal year. Main changes in current liabilities were an increase of989 million yen in accounts payable - trade, and an increase of 3,695 million yen in short-term borrowings.
Main change in non-current liabilities was a decrease of 2,482 million yen in long-term borrowings.
Net assets at the end of the quarter under review were 67,333 million yen, an increase of 1,652 million yen
from the end of the previous fiscal year. This was mainly due to profit attributable to owners of parent of
2,915 million yen, payment of 969 million yen as dividends declared at the end of the previous period, anincrease of 625 million yen in valuation difference on available-for-sale securities, and a decrease of 723
million yen in foreign currency translation adjustment.
As a result, equity ratio at the end of the quarter under review decreased by 0.3% from the end of the previous
fiscal year to 48.2%.
(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, 2024 exceeded expectations
due to a growth in overseas sales such as DIFICLIR. Net sales and profits are expected to mainly be in linewith expectations starting from the second quarter, and we are not updating our consolidated financial forecast
announced on May 11, 2023 due to uncertainties with energy and raw material prices and exchange rate
trends.

3

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly consolidated balance sheet(Thousands of yen)
As of March 31, 2023
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, 2023

16,219,078
17,512,925
6,843,723
1,433,308
4,487,158
1,800,930(93,366)
48,203,757

16,884,564
19,079,936
6,984,429
1,658,063
4,896,755
1,948,938(86,818)
51,365,868

6,772,573
12,359,997
5,458,805
24,591,375

6,722,159
12,468,684
5,515,751
24,706,595

5,299,798
28,157,670
8,473,201
41,930,669

5,162,251
28,350,058
8,512,253
42,024,563

6,849,304
12,927,173
578,716(46,460)
20,308,733
86,830,779
135,034,536

7,613,306
12,842,744
578,388(57,491)
20,976,947
87,708,106
139,073,975

1,996,122
34,890,470
749,106
1,554,662
7,967,956
47,158,318

2,985,615
38,586,230
1,173,990
1,246,335
8,450,122
52,442,295

14,541,480
897,300
234,465
56,031
6,466,230
22,195,507
69,353,826

12,058,670
912,407
221,968
56,083
6,049,051
19,298,180
71,740,475

(Thousands of yen)
As of March 31, 2023
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, 2023

6,593,398
11,685,121
53,462,589(18,264,989)
53,476,120

6,593,398
11,685,121
55,408,244(18,264,989)
55,421,776(314,469)
8,015,623
4,272,642
11,973,796
230,793
65,680,710
135,034,536

311,317
7,292,065
4,077,871
11,681,253
230,469
67,333,499
139,073,975

(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, 2022
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 (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

Three months ended
June 30, 2023

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

18,304,531
4,573,804
13,730,727
10,760,562
2,970,165

3,230
156,760–
32,780192,772

7,101
190,557
164,481
140,512502,653

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

110,727–
6,373
117,101
3,355,717

251
251

–
–

2,946
2,946
2,972,172
367,525
2,604,646
3,357
2,601,289––
3,355,717
441,923
2,913,793(1,626)2,915,420

Quarterly consolidated statement of comprehensive income(Thousands of yen)Three months ended
June 30, 2022
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, 2023

2,604,646

2,913,793(412,566)
1,085,507(15,039)
657,901
3,262,548

625,787(722,241)(194,771)(291,225)
2,622,567

3,245,743

2,622,878

16,805(310)

(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.

8

(Segment information, etc.)[Segment information]
Ⅰ First three months of the previous 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)

16,305,183–

16,305,183

109,515

112,390(112,390)–

16,271,824

145,749

16,417,574(112,390)

16,305,183

4,178,205

58,0394,236,244(1,259,114)

2,977,129

Reportable segment
Other(Note 1)

EthicalPharmaceuticals
Business

Consumer
Healthcare
Business

Total

10,280,864

5,988,085

16,268,949

36,233

2,816

58

2,875

10,283,680

5,988,144

2,831,626

1,346,578

Total

Net sales
Sales to externalcustomers
Intersegment
sales and transfers
Total
Segment profit(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.
Ⅱ First three months of the current fiscal year (from April 1, 2023 to June 30, 2023)
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)18,304,531–

18,304,531

188,488

191,631(191,631)–

18,269,103

227,060

18,496,163(191,631)

18,304,531

4,241,557

64,3684,305,926(1,335,761)

2,970,165

Reportable segment

Net sales
Sales to externalcustomers
Intersegment
sales and transfers
Total
Segment profit

Other(Note 1)

EthicalPharmaceuticals
Business

Consumer
Healthcare
Business

Total

11,947,965

6,317,994

18,265,960

38,571

3,085

58

3,143

11,951,050

6,318,052

2,874,541

1,367,016

Total(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 (1,335,761) 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

Name of segment(from April 1, 2023
to June 30, 2023)

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

Ethical Pharmaceuticals Business

11,947,965

16.2

Consumer Healthcare Business

6,317,994

5.5

18,265,960

12.3

38,571

6.5

18,304,531

12.3

Total reportable segment
Other
Total
(Note)

Inter-segment transactions are offset and eliminated.

10(2) Sales of major products and merchandise Consolidated(Thousands of yen)

1. Ethical Pharmaceuticals BusinessFirst three months ofthe previous fiscal year

First three months ofthe current fiscal year

(from April 1, 2022

(from April 1, 2023

to June 30, 2022)

to June 30, 2023)

Percentage change (%)

10,280,864

11,947,965

16.2

Asacol4,831,949

5,189,868

7.4

DIFICLIR

1,514,971

3,238,281

113.8

Entocort

1,545,144

1,092,305(29.3)

Acofide773,877

770,702

(0.4)

Other

1,614,920

1,656,807

2.6

5,988,085

6,317,994

5.5

Hepalyse range

2,336,600

2,557,467

9.5

Chondroitin range

1,329,756

1,407,737

5.9

WithOne range

296,714293,355(1.1)

2,025,013

2,059,434

1.7

36,23338,571

6.5

16,305,183

18,304,531

12.3

2. Consumer Healthcare Business

Other
3. Other Business
Total

11

(3) Status of pipeline of new drugs
I.

Domestic

As of August 3, 2023

Stage

Development Code/
Generic Name

Development

Indications

Classification

OriginNDA in preparation

ZG-801/Patiromer
Sorbitex Calcium

Zeria

Hyperkalemia

Potassium binder

In-licensed

Phase IIIZ-338/Acotiamide

Zeria

Pediatric functional
dyspepsia

Upper gastrointestinal
motility modulator

Original

Phase II

ZG-802/Acotiamide

Zeria

Underactive bladder

Lower urinary tract
function modulator

Original

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, Honduras,
Dominican
Republic, Ecuador,
Chile)

Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

NDA approved(Thailand)

Z-338/Acotiamide

Meiji Seika
PharmaFunctional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

NDA filed(Vietnam)Z-338/Acotiamide

Pharmaceutical
Joint Stock
Companyof February
3rd

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original

NDA filed(Colombia, Peru,
Costa Rica,
Guatemala,Panama, Nicaragua,
El Salvador)

Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

NDA filed(Indonesia)

Z-338/Acotiamide

Meiji Seika
PharmaFunctional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

12