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.
February 2, 2023

Consolidated Financial Results
for the First Nine 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: February 6, 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, 2022 through December 31, 2022)(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
Nine months ended

Million yen%

Million yen%

Million yen%

Million yen%

December 31, 2022

51,729

14.7

8,550

55.6

6,957

24.0

5,980

47.9

December 31, 2021

45,104

11.7

5,495

41.6

5,613

57.6

4,043

9.2

Note: Comprehensive income: For the nine months ended December 31, 2022: 13,040 million yen [501.0%]
For the nine months ended December 31, 2021: 2,169 million yen [(45.8)%]

Basic earnings
per share

Diluted earnings
per share

Nine months ended

Yen

Yen

December 31, 2022

135.31–

December 31, 2021

89.33

–

(2) Consolidated Financial Position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

December 31, 2022

137,076

65,98948.0

1,489.11

March 31, 2022

124,282

55,09244.2

1,236.09

Reference: Equity: As of December 31, 2022: 65,729 million yen

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

2. Dividends
Annual dividends
First quarter

Second quarter

Third quarter

Yen

Yen

Yen

Yen

Yen

Year ended
March 31, 2022

–

17.00

–

18.00

35.00

Year ending
March 31, 2023

–

18.00

–
20.00

38.00

Year ending
March 31, 2023 (Forecast)
Note: Revision of the forecast of dividends most recently announced: Yes

Year-endTotal

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

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

66,000

10.9

7,000

10.0

7,000

17.9

5,600

41.4

126.74

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

* Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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: Yes
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 December 31, 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 December 31, 2022: 8,978,982 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 nine months ended December 31, 2022: 44,200,883 shares
For the nine months ended December 31, 2021: 45,266,623 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(Changes in accounting estimates).................................................................................................................8(Additional information) ................................................................................................................................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 nine months of the fiscal year ending March 31, 2023 were 51,729 million yen (up 14.7%
from the same period of the previous fiscal year). As for profits, operating profit was 8,550 million yen (up55.6% from the same period of the previous fiscal year), ordinary profit was 6,957 million yen (up 24.0% fromthe same period of the previous fiscal year), and profit attributable to owners of parent was 5,980 million yen(up 47.9% from the same period of the previous fiscal year). The large difference in the year-on-year growthrate between operating profit and ordinary profit is because although the Company recorded foreign exchange
gains in the previous fiscal year, a large amount of foreign exchange losses was recorded by an overseas
subsidiary in the current fiscal year as a result of the rapid appreciation of the Swiss franc.
Following are the results by business segment.
(i) Ethical Pharmaceuticals Business
As for our mainstay product, Asacol, a therapeutic agent for ulcerative colitis, growth in sales of Asacol
1600 mg, a high-dose formulation only on sale in overseas markets, contributed to increased sales. Sales
of Entocort (domestic sales name: Zentacort), an inflammatory bowel disease (IBD) therapeutic agent,also increased, as sales grew in the overseas market in various regions, including Canada, Northern
Europe, and Italy. Although a generic drug was launched in some European countries last September, theimpact is currently negligible. In addition, sales of DIFICLIR, a therapeutic agent for Clostridium difficile
infections, 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 the European guidelines for the treatment of
infectious diseases. With regard to Acofide and Ferinject, we are working to build the market, particularly
in medical institutions performing endoscopy, and the domains of gastroenterology, and obstetrics andgynecology.
As a result, net sales in the business amounted to 32,434 million yen (up 17.8% 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 infections and a sharp
decline in demand from inbound tourists, its sales significantly increased owing to the recovery trend in
the sales of both the pharmaceutical Hepalyse range and the Hepalyse W range for convenience stores.
Sales of the Chondroitin range also remained strong, due in part to aggressive advertising and promotional
investments. On the other hand, sales of the WithOne range of botanical laxative products decreased dueto the impact from competing products.
As a result, net sales in the business amounted to 19,181 million yen (up 9.9% from the same period of theprevious fiscal year).
(iii) Other
Net sales in this segment amounted to 113 million yen (down 5.2% from the same period of the previous
fiscal year), mainly due to the insurance agency business and real estate lease revenue.
(2) Explanation of financial position
Total assets at the end of the third quarter of the fiscal year ending March 31, 2023 were 137,076 million
yen, an increase of 12,794 million yen from the end of the previous fiscal year. Current assets increased
8,910 million yen to 50,574 million yen from the end of the previous fiscal year, and non-current assets
increased 3,883 million yen to 86,502 million yen from the end of the previous fiscal year. Major changes
in current assets included an increase of 4,881 million yen in cash and deposits and an increase of 3,811
million yen in notes and accounts receivable - trade. Main changes in non-current assets were an increase2

of 822 million yen in property, plant and equipment and an increase of 3,166 million yen in intangible
assets.
Total liabilities at the end of the quarter under review were 71,087 million yen, an increase of 1,897
million yen from the end of the previous fiscal year. Current liabilities increased 3,895 million yen to
48,088 million yen from the end of the previous fiscal year, and non-current liabilities decreased 1,997
million yen to 22,999 million yen from the end of the previous fiscal year. Main changes in current
liabilities were an increase of 1,827 million yen in short-term borrowings, an increase of 876 million yen
in income taxes payable, and an increase of 1,245 million yen in other current liabilities including an
increase in accounts payable - other. Main changes in non-current liabilities were a decrease of 2,291
million yen in long-term borrowings and an increase of 349 million yen in provision for loss on
cancellation of contracts.
Net assets at the end of the quarter under review were 65,989 million yen, an increase of 10,896 million
yen from the end of the previous fiscal year. This was mainly due to profit attributable to owners of parentof 5,980 million yen, payment of 1,593 million yen as dividends declared at the end of the previous period
and in the current interim period, and an increase of 7,083 million yen in foreign currency translation
adjustment.
As a result, equity ratio at the end of the quarter under review increased by 3.8% from the end of theprevious fiscal year to 48.0%.
(3) Explanation of consolidated financial forecasts and other forward-looking statements
Operating profit and profit attributable to owners of parent for the first nine months of the fiscal year ending
March 31, 2023, have already exceeded the forecasts for the full year.
Sales in the overseas Ethical Pharmaceuticals Business are growing faster than expected. However, it isnecessary to carefully examine expenses taking into consideration the impact of foreign exchange trends andthe increase in prices of raw materials and energy. The consolidated financial forecast for the fiscal year ending
March 31, 2023, therefore, remains unchanged from the consolidated financial forecast announced on May 11,2022. If it becomes necessary to revise the financial forecast, we will disclose the revised forecast promptly.

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 December 31, 2022

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

16,586,161
20,018,244
6,776,737
1,086,716
4,628,472
1,558,584(80,588)
50,574,328

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

6,440,401
12,362,334
5,158,621
23,961,356

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

5,542,642
29,835,245
8,994,667
44,372,555

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

7,156,318
10,490,175
568,594(46,851)
18,168,236
86,502,148
137,076,476

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

2,567,315
35,670,518
1,334,839
958,250
7,557,210
48,088,134

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

16,094,690
839,851
1,104,487
55,9804,904,274
22,999,283
71,087,417

(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 December 31, 2022

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

6,593,398
11,685,121
53,247,567(18,138,912)
53,387,174(193,416)
3,215,379
2,326,536
5,348,499
197,832
55,092,474
124,282,333(5,767)
10,298,583
2,049,651
12,342,466
259,41765,989,058
137,076,476

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income(Thousands of yen)
Nine months ended
December 31, 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
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Provision for loss on cancellation of contracts
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

Nine months ended
December 31, 2022

45,104,773
13,279,666
31,825,106
26,329,373
5,495,732

51,729,738
14,480,435
37,249,303
28,698,601
8,550,701

11,252
190,851
131,834
65,437399,376

35,835226,956–
61,925
324,716

232,304–
49,612281,916
5,613,192

265,520
1,628,114
23,855
1,917,490
6,957,928

3,483
14,58918,072

1,371
19,94021,312

4,002
–
4,002
5,627,262
1,578,735
4,048,526
4,937
4,043,589

3,736
235,935
239,672
6,739,567
742,857
5,996,710
15,866
5,980,843

Quarterly consolidated statement of comprehensive income(Thousands of yen)
Nine months ended
December 31, 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

Nine months ended
December 31, 2022

4,048,526

5,996,710(951,588)(438,971)(488,181)(1,878,741)
2,169,784

187,648
7,132,651(276,885)
7,043,414
13,040,124

2,150,406

12,974,810

19,37865,313

(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 third 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 nine monthsof the current fiscal year.
(Changes in accounting estimates)
Previously, the trademark right for the product Entocort, held by our subsidiary Tillotts Pharma AG, was notamortized because its useful life could not be determined. However, since a generic drug was launched insome European countries, the Company started to amortize the right by reasonably estimating the useful life
as the period when the brand can be maintained in the future.
As a result, operating profit, ordinary profit and profit before income taxes for the first nine months of thecurrent fiscal year each decreased by 139,452 thousand yen.
(Additional information)
Effect of change in corporate tax rate
In the Swiss canton where our subsidiary Tillotts Pharma AG is headquartered, the corporate income tax rate
was reduced. The amounts of income taxes and deferred tax liabilities (net of deferred tax assets) wererecalculated using the corporate tax rate after the reduction.
As a result, income taxes for the first nine months of the current fiscal year decreased by 774,138 thousandyen.

8

(Segment information, etc.)[Segment information]
Ⅰ First nine months of the previous fiscal year (from April 1, 2021 to December 31, 2021)
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)45,104,773–

45,104,773

443,481443,578(443,578)–

44,985,318

563,033

45,548,352(443,578)

45,104,773

9,053,124

198,5999,251,724(3,755,991)

5,495,732

Reportable segment
Other(Note 1)

EthicalPharmaceuticals
Business

Consumer
Healthcare
Business

Total

27,529,565

17,455,657

44,985,222

119,551–

96

96

27,529,565

17,455,753

5,543,942

3,509,182

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 (3,755,991) 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 nine months of the current fiscal year (from April 1, 2022 to December 31, 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)51,729,738–

51,729,738

382,185(382,185)–

52,111,923(382,185)

51,729,738

12,223,203(3,672,502)

8,550,701

Reportable segment

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

Other(Note 1)

EthicalPharmaceuticals
Business

Consumer
Healthcare
Business

Total

32,434,601

19,181,759

51,616,360

113,377

2,784

105

2,890

379,294

32,437,385

19,181,865

51,619,251

492,671

8,036,838

4,006,794

12,043,632

179,570

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 (3,672,502) 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 nine months of the current fiscal year.
(Thousands of yen)First nine months ofthe current fiscal year

Name of segment(from April 1, 2022
to December 31, 2022)

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

Ethical Pharmaceuticals Business

32,434,601

17.8

Consumer Healthcare Business

19,181,759

9.9

51,616,360

14.7

113,377(5.2)

51,729,738

14.7

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 February 2, 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)

Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original (Outlicensed)

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

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