Consolidated Financial Statements for
the Fiscal Year Ended March 31, 2022
[Japanese GAAP]May 12, 2022
Company name: VITAL KSK HOLDINGS, INC.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3151
URL: https://www.vitalksk.co.jp/
Representative: Mr. Taisuke Murai, President & CEO
Contact: Mr. Kiharu Takahashi, Executive Officer and General Manager of Accounting & FinancePhone: +81-3-3275-3303
Scheduled date of annual meeting of shareholders: June 28, 2022
Scheduled date of commencing dividend payments: June 7, 2022
Scheduled date of filing securities report: June 29, 2022
Preparation of supplementary explanatory materials: Yes
Financial results briefing: Yes (for institutional investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Results for the Fiscal Year Ended March 31, 2022
(April 1, 2021 – March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Operating profit
Profit attributable to
Net sales
Ordinary profit(loss)
owners of parent
Year ended
Million yen% Million yen%
Million yen%
Million yen%
577,249
7.5
2,945
5,834 741.4
4,770 307.1
March 31, 2022
March 31, 2021
537,030(4.5)(2,260)693(89.2)
1,171(74.8)(Note) Comprehensive income: Year ended March 31, 2022: ¥(1,663) million [-%]
Year ended March 31, 2021: ¥7,672 million [139.6%]
Ratio ofRatio of
Basic earnings Diluted earnings
Return on
ordinary profit
operating profit
per shareper share
equityto total assets
to net sales
Year ended
Yen
Yen
%
%
%
4.7
1.9
0.5
March 31, 2022
87.88
March 31, 2021
21.26
1.2
0.2
(0.4)
(Note) Share of profit (loss) of entities accounted for using equity method: Year ended March 31, 2022: ¥87 million
Year ended March 31, 2021: ¥86 million(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Net assets per
share

Equity ratio

Million yen%

Yen313,033
100,041
As of March 31, 2022
311,401
103,916
As of March 31, 2021
(Reference) Equity: As of March 31, 2022: ¥98,961 million
As of March 31, 2021: ¥102,943 million

31.6
33.1

1,858.86
1,863.77(3) Consolidated Cash Flows

Year ended
March 31, 2022
March 31, 2021

Cash and cash
equivalents
at year-end

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

7,487(1,389)(2,013)549(8,486)(2,516)23,23926,252

2. Cash Dividends
Annual dividends
1st
2nd
3rd
Yearquarter- quarter- quarterend
end
end
end

Total

Total
dividends(annual)Payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Million yen%%
Year ended
Yen
Yen
Yen
Yen
Yen
0.6
March 31, 2021
12.00
0.00
12.00
664
56.4
12.00
26.00
29.6
1.4
March 31, 2022
- 14.00
1,400
Year ending
March 31, 2023
12.00
- 12.00
24.00
28.4(Forecast)(Note) Breakdown of year-end dividend for the fiscal year ended March 31, 2022: Special dividend of 2.00 yen

3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2023
(April 1, 2022 - March 31, 2023)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating profit%

Million yen%

Ordinary profit
Million yen%

Profit attributableto owners of parent
Million yen%

Basic earnings
per share
Yen

Second quarter
284,000
(0.4)
1,200
28.4
2,500
6.1
1,700
20.5
31.93
(cumulative)
Full year
563,300(2.4)
2,300 (21.9)
4,900 (16.0)
4,500
(5.7)
84.53
*For performance forecast, please see “1. Overview of Operating Results, etc.; (4) Future Outlook” on page 5.

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Total number of outstanding shares (common shares)
1) Total number of outstanding shares at the end of the period (including treasury stocks):
March 31, 2022: 61,224,796 shares
March 31, 2021: 61,224,796 shares2) Total number of treasury stocks at the end of the period:
March 31, 2022: 7,987,331 shares
March 31, 2021: 5,990,796 shares
3) Average number of shares during the period:
Year ended March 31, 2022: 54,280,124 sharesYear ended March 31, 2021: 55,107,703 shares(Reference) Summary of Non-consolidated Results
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2022
(April 1, 2021 - March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Ordinary profit
ProfitYear ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2022
4,901
93.1
4,118
118.6
4,085
118.3
4,073 121.9
March 31, 2021
2,538
(11.7)
1,883(13.0)
1,871(14.6)
1,835(11.9)

Year ended
March 31, 2022
March 31, 2021

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

75.04
33.31

-

(2) Non-consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

69,162As of March 31, 2022
As of March 31, 2021
66,592(Reference) Equity: As of March 31, 2022: ¥46,251 million
As of March 31, 2021: ¥44,385 million

46,251
44,385Equity ratio

Net assets per share
%

Yen

66.9
66.7

868.78803.59* These financial results are outside the scope of audit procedures by certified public accountants or audit corporations.
* Explanation of the proper use of performance forecast and other notes- The earnings forecast and other forward-looking statements herein are based on the information currently
available and certain assumptions deemed reasonable by the Company, and thus actual results may differ
significantly from these forecasts due to a wide range of factors. For cautionary notes on assumptions that form
the basis of the performance forecast and the use of performance forecast, please see “Overview of Operating
Results, etc.” on page 2 of the attached materials.

- The Company plans to hold a financial results briefing on the Internet for institutional investors and analysts on
May 12, 2022. The presentation materials to be used at the briefing will be posted on the Company’s website
immediately after the briefing.

Table of Contents
1. Overview of Operating Results, etc. ............................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year Under Review .............................................................. 2(2) Overview of Financial Position for the Fiscal Year Under Review ............................................................. 3(3) Overview of Cash Flows for the Fiscal Year Under Review ........................................................................ 4(4) Future Outlook ............................................................................................................................................. 5(5) Important Events Related to Going Concern Assumption ........................................................................... 6(6) Dividend Policy and Payments for This Period and Next Period................................................................. 6
2. Overview of the Corporate Group .................................................................................................................. 7
3. Management Policy ........................................................................................................................................ 8(1) Basic Management Policies ......................................................................................................................... 8(2) Target Management Indicators..................................................................................................................... 8(3) Medium- and Long-term Business Strategies .............................................................................................. 8(4) Issues to be Addressed ................................................................................................................................. 9(5) Other Important Management Matters ......................................................................................................... 9
4. Basic Idea for Selection of Accounting Standards ......................................................................................... 10
5. Consolidated Financial Statements and Primary Notes .................................................................................. 11(1) Consolidated Balance Sheets.................................................................................................................... 11(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 13(3) Consolidated Statements of Changes in Equity ......................................................................................... 15(4) Consolidated Statements of Cash Flows .................................................................................................... 17(5) Notes to Consolidated Financial Statements .............................................................................................. 19(Notes on going concern assumption) ................................................................................................... 19(Changes in accounting policies) .......................................................................................................... 19(Segment information) .......................................................................................................................... 19(Per share information) .......................................................................................................................... 23(Significant subsequent events) ............................................................................................................. 23

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year Under Review(Operating results for the fiscal year under review)
The Japanese economy during the year ended March 31, 2022 remained unpredictable with the ongoing
COVID-19 pandemic, while vaccination rates increased.
In the pharmaceutical wholesale industry, our Group’s primary business segment, Japan’s medical expense
curbing policy has led to drug price revision every year since 2018, and the scope of off-year drug pricerevisions in April 2021 was far beyond the original expectation. It was the negative revision of medical costs(approximately ¥430 billion down) based on the budget for fiscal year 2021.
Under these circumstances, the Group reached the final year of its fourth medium-term management planfor the three-year period from the year ended March 31, 2020 to the year ended March 31, 2022. In the fourth
medium-term management plan, the Company continued to work on its long-term vision toward 2025 of“Becoming an indispensable presence in regional and community healthcare by strategically providing
products and services to support medicine and nursing” as set forth in its third medium-term management plan.
Furthermore, under this long-term vision, as its medium-term vision during the fourth medium-term
management plan, the Company defined the vision of “To Become the Corporate Group of Choice” withpractical tasks to “1. Construct a prescription pharmaceutical wholesale business system to create profits
continuously even in the low-growth environment,” “2. Increase earnings through growth and expansion of
emerging business (Note 1),” and “3. Strengthen the Group management system.” Additionally, to realize thismedium-term vision, the Company worked toward the four basic principles of “Demonstrating thecomprehensive strength of the Group by implementing effective and efficient Group management,”“Expanding and establishing provision functions and focus on growing domains,” “Coordinating regional
healthcare and providing support and solutions,” and “Developing new earnings strategies and businesses thatuse our strengths and resources.”
For the year ended March 31, 2022, net sales were ¥577,249 million (107.5% of that of the same period of
the previous year), operating profit was ¥2,945 million (¥2,260 million of operating loss in the same period of
the previous year), ordinary profit was ¥5,834 million (841.4% of that of the same period of the previous year),and profit attributable to owners of parent was ¥4,770 million (407.1% of that of the same period of theprevious year).
While the application of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020) and other standards reduced net sales by ¥1,106 million, it did not affect operating profit,
ordinary profit, and profit attributable to owners of parent.
(Note 1) Emerging business refers to businesses other than the prescription pharmaceutical wholesale
business.
Performance results by business segment are as follows.
1) Pharmaceutical Wholesale BusinessIn the pharmaceutical wholesale business, demand for pharmaceuticals declined significantly in theprevious fiscal year due to restrictions on medical examinations and the postponement of operations and othermedical treatments, stemming from the spread of COVID-19. However, the demand recovered faster than
anticipated for the year ended March 31, 2022. COVID-19 related product sales and rentals also performedwell.
In the previous year, we couldn’t have enough time for price negotiation with customers due to the impact
of COVID-19 pandemic as well as the intensified competition in the market. As a result, we couldn’t promote
the negotiation for unit price-based contract which is one of the approaches for improvement of commercial

2

transaction practices of ethical drugs which we had worked on for a long time. During the year ended March
31, 2022, we made our utmost efforts towards promotion of the negotiation for unit price-based contract, andthe deal with optimized price in consideration of the value of pharmaceutical products, in line with the
purpose of Guidelines for the Improvement of Commercial Transaction Practices of Ethical Drugs, to maintainthe structure to provide a stable supply of pharmaceutical products. In addition, we focused on the cost
reduction by reviewing operational processes. Meanwhile, to fulfill our social mission of helping to put
COVID-19 to an end, we have also focused on COVID-19 vaccine-related work commissioned by thenational and local governments, which involves vaccine delivery, operation of primary vaccination clinics
with deep freezers, and repackaging in smaller units.
As a result, net sales were ¥544,249 million (107.5% of that of the same period of the previous year), andsegment profit (operating profit) was ¥2,443 million (segment loss of ¥2,542 million in the same period of theprevious year).
The application of the Accounting Standard for Revenue Recognition and other standards reduced net
sales by ¥1,107 million, while it did not affect the segment profit.
2) Pharmacy BusinessIn the pharmacy business, net sales were ¥18,397 million (109.7% of that of the same period of theprevious year) due to the increase of one consolidated company in the dispensing pharmacy business and thegrowth in the number of prescriptions received, and segment profit (operating profit) was ¥205 million(segment loss of ¥19 million in the same period of the previous year).
The application of the Accounting Standard for Revenue Recognition and other standards did not affect
net sales and segment profit.
3) Veterinary Drug Wholesale BusinessIn the veterinary drug wholesale business, net sales were ¥10,399 million (106.0% of that of the same
period of the previous year), and segment profit (operating profit) was ¥371 million (92.5% of that of thesame period of the previous year), due to the increase in distribution costs.
The application of the Accounting Standard for Revenue Recognition and other standards increased net
sales by ¥0 million, while it did not affect the segment profit.
4) Other Businesses
In other businesses, the nursing care business improved its earnings, whereas the sports facility
management business performed insufficiently. As a result, net sales were ¥4,201 million (103.6% of that of
the same period of the previous year), and segment loss (operating loss) was ¥131 million (segment loss of¥156 million in the same period of the previous year).
The application of the Accounting Standard for Revenue Recognition and other standards did not affect
net sales and segment profit.

(2) Overview of Financial Position for the Fiscal Year Under Review
Assets as of the end of the year ended March 31, 2022 amounted to ¥313,033 million, an increase of¥1,632 million from the end of the previous consolidated fiscal year. Assets comprised ¥198,532 million ofcurrent assets and ¥114,501 million of non-current assets.
Current assets mainly comprised ¥26,971 million of cash and deposits, ¥119,533 million of notes andaccounts receivable - trade, ¥31,788 million of inventories and ¥16,617 million of accounts receivable - other.
Current assets increased ¥7,897 million from the end of the previous consolidated fiscal year, due primarily to
an increase of ¥4,993 million of notes and accounts receivable - trade and an increase of ¥2,469 million of
inventories.

3

Non-current assets comprised ¥45,761 million of property, plant and equipment, ¥5,036 million of
intangible assets and ¥63,703 million of investments and other assets. Non-current assets decreased ¥6,265
million from the end of the previous consolidated fiscal year, due primarily to a ¥7,678 million decrease ininvestment securities.
Liabilities amounted to ¥212,991 million, an increase of ¥5,506 million from the end of the previous
consolidated fiscal year. Liabilities comprised ¥190,092 million of current liabilities and ¥22,898 million of
non-current liabilities.
Current liabilities mainly comprised ¥176,685 million of notes and accounts payable - trade and ¥2,399
million of income taxes payable. Although there was a decrease of ¥4,400 million in current portion of longterm borrowings, current liabilities increased ¥11,666 million from the end of the previous consolidated fiscal
year, due primarily to a ¥9,711 million increase in notes and accounts payable - trade and an increase of¥2,174 million in income taxes payable.
Non-current liabilities mainly comprised ¥7,760 million of long-term borrowings, ¥9,744 million ofdeferred tax liabilities and ¥2,629 million of retirement benefit liability. Non-current liabilities decreased¥6,159 million from the end of the previous consolidated fiscal year, due primarily to a decrease of ¥3,285
million in retirement benefit liability and a decrease of ¥2,554 million in deferred tax liabilities.
Net assets amounted to ¥100,041 million, a decrease of ¥3,874 million from the end of the previous
consolidated fiscal year, due primarily to the reporting of profit attributable to owners of parent of ¥4,770
million, a decrease of ¥1,555 million due to an increase in treasury shares and a ¥6,006 million decrease invaluation difference on available-for-sale securities.

(3) Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents (collectively, “Cash”) as of the end of the year ended March 31, 2022
amounted to ¥23,239 million (compared to ¥26,252 million at the end of the previous consolidated fiscal year).
a) Cash Flows from Operating Activities
Cash provided by operating activities during the year ended March 31, 2022 was ¥7,487 million (¥1,389
million used for the previous consolidated fiscal year). This is attributable mainly to increasing factors such as
an increase in profit before income taxes of ¥7,648 million (¥2,432 million for the previous consolidated fiscal
year), increase in trade payables of ¥9,624 million (¥1,632 million decrease for the previous consolidated
fiscal year) and depreciation of ¥2,780 million (¥2,876 million for the previous consolidated fiscal year)
despite decreasing factors such as an increase in trade receivables of ¥4,933 million (¥716 million increase forthe previous consolidated fiscal year) and a decrease in retirement benefit liability of ¥3,323 million (¥1,772
million decrease for the previous consolidated fiscal year).
b) Cash Flows from Investing Activities
Cash used in investing activities during the year ended March 31, 2022 was ¥2,013 million (¥549 million
provided for the previous consolidated fiscal year). This is attributable mainly to decreasing factors such aspurchase of property, plant and equipment of ¥3,415 million (¥3,312 million for the previous consolidated
fiscal year) and purchase of investment securities of ¥885 million (¥38 million for the previous consolidated
fiscal year) despite increasing factors such as proceeds from sale of investment securities of ¥2,588 million(¥3,935 million for the previous consolidated fiscal year).
c) Cash Flows from Financing Activities
Cash used in financing activities during the year ended March 31, 2022 was ¥8,486 million (¥2,516
million used for the previous consolidated fiscal year). This is attributable to decreasing factors such as
repayments of long-term borrowings of ¥5,370 million (¥400 million for the previous consolidated fiscal year)4and purchase of treasury shares of ¥1,559 million (¥0 million for the previous consolidated fiscal year).

(4) Future Outlook
With the year 2025 just around the corner, when the baby boomers will be late-stage elderly, therestrictions on social security payments and revisions to the system in anticipation of social structural changes
that have been implemented are considered to continue in the future. Similarly, although demand is strong in
the market for the pharmaceutical wholesale business, the core business of the Group, the overall growth isexpected to be restrained. In particular, even if the volume of off-patent (long-listed and generic drug) products
increases significantly, the unit price of these products is projected to fall at a faster rate than before due to thereview of the drug price system and annual revisions to drug prices, resulting in a rapid decline in profits.
Therefore, it is necessary to realize further efficiency in distribution channels in order to ensure a stable supply.
On the other hand, in the patented products market, high-priced drug products (mostly so-called specialty
medicines) tailored to unmet medical needs (Note 3), such as diverse drug modalities (Note 2) including
anticancer drugs and rare disease drugs, will be the key for market growth. Although applications of thesedrugs are limited to a few specialized medical institutions, new drug distribution needs to also arise according
to the field of expertise, such as providing more advanced information, and therefore the challenge is to find away to deal with it.
In the field of medical care, new diagnostic and therapeutic techniques that use cutting-edge technology is
about to bring forth substantial innovations. In addition to regenerative medicine, new diagnostic drugs,
medical devices, robots, and other new means of diagnosis and medical treatment will drive future market
growth, while also posing new distribution challenges. Furthermore, in the health care domain centering on
medical care, the advancement of DX is expected to contribute to improving efficiency for regional healthcare
providers and bring significant changes to every business involved in the domain.
In light of these changes in the market structure and business environment, the Group has formulated its
fifth medium-term management plan for the three-year period from the fiscal year ending March 31, 2023 to
the fiscal year ending March 31, 2025.
In the fifth medium-term management plan, the Group will continue to achieve its long-term vision for2025 to "become an indispensable presence in regional and community healthcare by strategically providing
products and services to support medicine and nursing," which was set out in the third medium-term
management plan, and implement its medium-term vision "business model innovation for the next
generation."[Medium-term vision]“To Drive Business Model Innovation for the Next Generation”
1. Explore a pharmaceutical distribution model to adopt changes in the market structure and meet market
characteristics
2. Evolve distribution and marketing models tailored to the advancement of DX in the field of medical care
3. Promote the Group management that meets Prime Market requirements
As for the forecast of results for the year ending March 31, 2023, the Company expects net sales of¥563,300 million (97.6% of that of the same period of the previous year), operating profit of ¥2,300 million(78.1% of that of the same period of the previous year), ordinary profit of ¥4,900 million (84.0% of that of
the same period of the previous year), and profit attributable to owners of parent of ¥4,500 million (94.3%
of that of the same period of the previous year).
(Note 2) Modalities refer to methods and means of basic drug discovery technology to research and develop
not only small molecule drugs but also antibody drugs, nucleic acid drugs, and gene therapeutic5

drugs.
(Note 3) Unmet medical needs refers to medical needs for diseases for treatments that are not yet available.
(5) Important Events Related to Going Concern Assumption
Not applicable.
(6) Dividend Policy and Payments for This Period and Next Period
The Group recognizes the return of profits to shareholders as a management task of paramount importance.
To fulfill this task, it will make efforts to maintain stable and continuous dividend payment and to enhanceinternal reserves from the long-term perspective of maximizing corporate value.
For the year ended March 31, 2022, the Group has decided to pay the interim dividend of ¥12 per share, aspreviously paid, and a year-end dividend of ¥14 per share, comprising an ordinary dividend of ¥12 per share,plus a special dividend of ¥2 per share, due to business performance exceeding our forecast, for a total annual
dividend of ¥26 per share.
For the year ending March 31, 2023, the Group expects to pay an annual dividend of ¥24 per shareconsisting of the interim dividend of ¥12 per share and the year-end dividend of ¥12 per share.

62. Overview of the Corporate GroupThe Group (the Company and the associated companies of the Company) comprises the Company, its 20
subsidiaries and four affiliates. The Group is mainly engaged in businesses associated with the four businessesof the pharmaceutical wholesale business, the pharmacy business, the veterinary drug wholesale business, andother businesses. Other businesses include the retail of pharmaceuticals, the wholesale of agricultural chemicals,
the transportation business, the nursing care service business, the consulting services for medical institutions,the non-life insurance agency business, the real estate brokerage business and the operation of parking lots.
Business

Associated companies

Pharmaceutical Wholesale
Business

VITAL KSK HOLDINGS, INC. (the Company), VITAL-NET, Inc., KSK CO.,LTD., FINESE Inc.

Pharmacy Business

OHNO Co., LTD., Goodneighbor Inc., KENKODO YAKKYOKU, G.K.

Veterinary Drug Wholesale
Business

AGRO-JAPAN Co., Ltd.

Other Businesses

Health Care Management Institute Ltd., Vital Green Co., Ltd., VITAL-CARE,
Inc., Tanpopo Co., LTD., Vital Express Co., Ltd., Daishin Tsushou Co., LTD.,
PLEARC, INC., other 10 companies

The following figure illustrates the Company’s business structure.
〈Company's Business〉
Pharmaceutical Wholesale Business◎VITAL-NET, Inc.
◎KSK CO., LTD.
○FINESE Inc.

Pharmacy Business

Veterinary Drug Wholesale Business◎AGRO-JAPAN Co., Ltd.

Other Businesses◎Health Care Management Institute Ltd.

◎Vital Green Co., Ltd.
◎VITAL-CARE, Inc.
◎Tanpopo Co., Ltd.

◎Vital Express Co., Ltd.
◎Daishin Tsushou Co., Ltd.
◎PLEARC, INC.
Other 7 companies (non-consolidated subsidiaries not accounted forusing equity method)

Other 3 companies (affiliates not accounted for using equity method)◎: Consolidated subsidiaries
Flow of products and services○: Equity method affiliates

7

Customers

VITAL KSK HOLDINGS, INC. (the Company)

Pharmaceutical manufacturers◎OHNO Co., LTD.
◎Goodneighbor Inc.
◎KENKODO YAKKYOKU, G.K.

3. Management Policy(1) Basic Management Policies
On April 1, 2009, the VITAL KSK Group was launched upon the establishment of VITAL KSKHOLDINGS, INC., a joint holding company, through the share transfer of VITAL-NET, Inc. and KSK CO.,LTD. and 13 years have passed since then.
The VITAL KSK Group, based on its corporate slogan, “Towards realization of healthy and prosperous
society,” has been focused on “the acceleration of business management and the reinforcement of market
development,” “the effective utilization of IT and the fusion/evolution of pharmaceutical distribution
techniques accumulated over the years” and “the improvement of profitability through the demonstration ofsynergy” in an effort to realize its long-term vision, “raising its presence within the industry and pursuing the
distribution of innovative pharmaceuticals.”(2) Target Management Indicators
The Group formulated its fifth medium-term management plan for the three-year period from the year
ending March 31, 2023 to the year ending March 31, 2025.
Targets

Net salesYear ending March 31, 2023

Year ending March 31, 2024

Year ending March 31, 2025

Plan
Sales ratio(Million
(%)
yen)

Plan
Sales ratio(Million
(%)
yen)

Plan
Sales ratio(Million
(%)
yen)

YoY
(%)

563,300

97.6

568,000

YoY
(%)
100.9

566,000

YoY
(%)
99.6

Operating profit

2,300

0.41

78.1

3,200

0.56

139.1

3,700

0.65

115.6

Ordinary profit

4,900

0.87

84.0

5,800

1.02

116.0

6,200

1.10

106.9

Profit attributable toowners of parent

4,500

0.80

94.3

5,100

0.90

110.9

5,400

0.95

105.9

(3) Medium- and Long-term Business Strategies
As stated above, the Group started its fifth medium-term management plan in April 2022. We willcontinue to achieve its long-term vision for 2025 to “become an indispensable presence in regional andcommunity healthcare by strategically providing products and services to support medicine and nursing,” asdefined in the third medium-term management plan. Additionally, in its fifth medium-term management plan,in order to achieve its medium-term vision “To Drive Business Model Innovation for the Next Generation,”
the Group is working through the three basic policies, “Exploring a pharmaceutical distribution model toadopt changes in the market structure and meet market characteristics,” “Evolving distribution and marketingmodels tailored to the advancement of DX in the field of medical care,” and “Promoting the Groupmanagement that meets Prime Market requirements.”[Major Practical Issues]<Pharmaceutical Wholesale Business>
1. Establishing a system that accommodates changes in the market structure(1) Realizing low-cost operations with improved and optimized processes(2) Conducting efficient and effective marketing activities to prescribers(3) Expanding MS functions (to replace MR functions)
2. Strengthening efforts for “hospitals,” the core regional health care providers, and reorganizing sales
structures83. Promoting DX for dispensing pharmacies
4. Sustainably improving supply chain management capabilities(1) Expanding the scope of packaged product delivery using inventory management systems(2) Developing a third-party logistics (3PL) business(3) Implementing a supply chain concept utilizing dispensing centers(4) Sustainably increasing logistics quality and efficiency<Group management strategy>
1. Financial strategy(1) Achieving ROE of 5% or more
(2) Implementing appropriate shareholder return policies, dividend payout ratio of 25% or more
(3) Reducing cross-shareholdings
2. Reviewing and developing corporate governance at a higher level
3. Further enhancing corporate communication (CC)
(1) Conducting appropriate CC activities in light of the Internet age and the financial strategy(2) Enhancing disclosure in English (including the Company's website, notices of convocation of general
meetings of shareholders)(3) Conducting CC activities that address task force on climate-related financial disclosures (TCFD) in
addition to environmental, social, and governance (ESG) activities(4) Issues to be Addressed
Regarding prescription pharmaceuticals, drug prices were revised four times in October 2019, April 2020,
April 2021, and April 2022 over two and a half years. Drug price revisions are planned to take place every
year and the government is likely to continue with its policy to limit medical costs in the future.
Under such circumstances, the Group started its fifth medium-term management plan in April 2022. In thepharmaceutical wholesale business, not only did the Group construct a business system to continue to create
profits even under low growth in the prescription pharmaceutical market, but based on a foundation of theGroup’s strengths in moving deeper into regional healthcare through its network with local governments,
nursing professionals and other regional healthcare providers, in addition to its network of medical institutions
developed through the prescription pharmaceutical wholesale business, the Group has made efforts to“become the corporate group of choice” for manufacturers, public administration, customers, and thecommunity by providing support and solutions through a wide range of products and services as it steadily
progresses into growth sectors. In particular, we will focus our efforts to adopt the digital transformation in thefield of medical care, which is expected to advance rapidly in the future.
(5) Other Important Management Matters
Not applicable.

94. Basic Idea for Selection of Accounting Standards
In order to ensure comparability between companies over time, the Group preparesits consolidated financial
statements in accordance with the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated
Financial Statements (excluding Chapters 7 and 8) (Ordinance of the Ministry of Finance No. 28 of 1976).
The Groupwill appropriately apply international accounting standards, while taking domestic and overseas
situations into account.

10

5. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

11

As of March 31, 2022

29,784
114,599
29,31815,367
1,632(67)
190,634

26,971
119,533
31,788
16,617
3,672(50)
198,532

46,811(27,703)
19,108
1,939(1,233)705
20,6706,137(3,561)
2,575
950
3,557
(2,881)676
44,68647,987(28,684)
19,303
1,951(1,355)595
20,735
6,814(3,929)
2,885
1,629
3,739
(3,126)612
45,761

3,111
890
589
4,591

2,874
1,356
805
5,036

55,186
1,633
7,653
373
7,216
(574)
71,488120,766
311,40147,508
1,588
7,684
383
7,115
(576)
63,703
114,501
313,033

(Million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for sales returns
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for retirement benefits for directors(and other officers)
Provision for share awards for directors (andother officers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

12

As of March 31, 2022

166,973
1,200
5,370
224
146
1,431
3,079
178,426

176,685
990
970
2,399
－
1,542
7,505
190,092

8,730
1,497
12,299

7,760
2,129
9,744

189

193

40

51

5,915
387
29,058207,485

2,629
391
22,898
212,991

5,000
12,81060,285(5,025)73,0705,000
12,81064,402(6,581)
75,631

27,652

21,645

2,220

1,683

29,87323,329972
103,916
311,401

1,080
100,041
313,033

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Reversal of provision for sales returns
Provision for sales returns
Gross profit - net
Selling, general and administrative expenses
Operating profit(loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Rental income
Administrative service fee income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Loss on valuation of investment securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the fiscal year ended
March 31, 2021
537,030
498,839
38,190174
146
38,21840,478(2,260)For the fiscal year ended
March 31, 2022
577,249
533,272
43,976－－43,97641,030
2,945

54
832

49
804

86

87

222
1,477

240
1,556

13

538

362

3,210

3,100

86
88

99
85

82

27

257
693

212
5,834

35
2,168
42
2,245

310
2,545
18
2,873

16
229
112
147
507
2,432
598
541
1,140
1,291
119
1,171

19
946
8

84
1,059
7,648
2,575
191
2,767
4,880
110
4,770

Consolidated Statements of Comprehensive Income(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

For the fiscal year ended
March 31, 2021
1,291

For the fiscal year ended
March 31, 2022
4,880

5,582

(5,819)

538

(546)

259

(178)

6,380
7,672

(6,543)(1,663)

7,552(1,773)

119

110

14

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Million yen)
Shareholders’ equity
Share
capitalBalance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Disposal of treasury shares bystocks payment trust
Change in scope of consolidation
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

5,000

CapitalsurplusRetainedearnings

12,739Total
shareholders’equity72,851

Treasuryshares60,368(5,256)(1,380)(1,380)

1,171

1,171

70

(0)
229

(0)
300

2

2

125

－
5,000

70
12,810125(83)60,285231(5,025)

218
73,070

Accumulated other comprehensive income

Balance at
beginning of
periodChanges during
periodDividends ofsurplusProfitattributableto owners ofparentPurchase oftreasury shares
Disposal oftreasuryshares
Disposal oftreasuryshares bystockspayment
trust
Change inscope ofconsolidationValuationdifference on
available-for-salesecurities

Remeasurements of defined
benefit plans

Total accumulated
othercomprehensive
income21,816

1,676

23,492

Non-controllinginterests

854

Total net assets

97,198(1,380)

1,171

(0)
300

2

125

15

Net changes in
items otherthanshareholders’ equity
Total changes
during period
Balance at end of
period

5,836

544

6,380

117

6,498

5,836

544

6,380

117

6,717

27,652

2,220

29,873972

103,91616

Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity
Share
capitalBalance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares bystocks payment trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares bystocks payment trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

5,000

－
5,000

CapitalsurplusRetainedearnings

12,810－12,81060,285

Treasury shares(5,025)

Total
shareholders’equity73,070

(653)

(653)

4,770

4,770

4,116
64,402

Accumulated other comprehensive income
Total
Valuation
Remeasureaccumulateddifference onments ofother
available-fordefinedcomprehensive
sale securities benefit plansincome27,652
2,220
29,873(1,559)(1,559)3

3(1,555)(6,581)

2,561
75,631

Noncontrollinginterests

Total net assets

972

103,916(653)
4,770(1,559)3(6,006)(537)(6,543)108(6,435)(6,006)
21,645

(537)
1,683

(6,543)23,329108
1,080(3,874)
100,04117

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year ended
March 31, 2021

For the fiscal year ended
March 31, 2022

2,432
2,876
229
322

7,648
2,780
946
343

(98)

(15)

(325)
(1,772)(886)(222)(1,477)86

106(3,323)(853)(240)(1,556)
99

(86)

(87)

(2,048)(2,536)

87

11

(12)

(286)

716
1,652
(222)
(77)
(1,632)(655)(1,113)
888
1,458
(88)
(2,863)318
9(1,389)(4,933)(2,450)(1,109)13
9,624

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Rental income
Office work fee
Interest expenses
Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on sale and valuation of investment
securities
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on sale and retirement of property,
plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Decrease (increase) in guarantee deposits
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Office work fee received
Interest paid
Income taxes paid
Income taxes refund
Other, net
Net cash provided by (used in) operating activities

18

1,348
5,528
852
1,548
(98)
(1,512)
1,156
10

7,487

(Million yen)
For the fiscal year ended
March 31, 2021
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from repayment of investment securities
Proceeds from redemption of investment securities
Loan advances
Proceeds from collection of loans receivable
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Redemption of convertible bond-type bonds with
subscription rights to shares
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Proceeds from disposal of treasury shares
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at end of period

19

For the fiscal year ended
March 31, 2022

100
(3,312)(200)(3,415)

43

551

(533)
(38)
3,935
13
50
(32)
65

(725)
(885)
2,588
7
－
(10)
40

－

(217)

257
549

252
(2,013)(9,700)

－

－
9,700
(400)
(737)
0
(0)
(1,377)(2)(2,516)(3,357)29,442(210)－(5,370)(694)－(1,559)(651)(2)(8,486)(3,013)
26,252

167－

26,252

23,239(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.

(Changes in accounting policies)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March
31, 2020) and other standards from the beginning of the year ended March 31, 2022. The Company now
recognizes revenue as the amount expected to be received in exchange for promised goods or services whencontrol of said goods or services is transferred to the customer.
Previously, the Company had recorded provision for sales returns based on the amount equivalent to grossprofit regarding sales with a right of return. The Company has since changed the recognition method for goods orservices that are expected to be returned in accordance with the rule regarding variable consideration, so as not torecognize revenue at the time of sales but recognize refund liabilities at the amount it received or is expected toreceive for the said goods or services.
For the application of the revenue recognition accounting standard, the Company has followed the transitional
treatment prescribed in the Article 84 proviso of the standard. Accordingly, the cumulative effect of retroactively
applying the new accounting policy prior to the beginning of the year ended March 31, 2022 has been added to or
subtracted from retained earnings at the beginning of the period, which nevertheless had no impact on the balanceat the beginning of the period.
As a result of the above applications, net sales for the year ended March 31, 2022 declined ¥1,106 million, costof sales ¥1,089 million, reversal of provision for sales returns ¥0 million, and provision for sales returns ¥18
million, while gross profit, operating profit, ordinary profit, and profit before income taxes were not affected.
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July4, 2019) and other standards from the beginning of the year ended March 31, 2022. In accordance with thetransitional treatments prescribed in Article 19 of the Accounting Standard for Fair Value Measurement andArticle 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), theCompany plans to apply the new accounting policies stipulated by the Accounting Standard for Fair Value
Measurement and other standards through the future. The decision does not affect the consolidated financial
statements.
(Segment information)
1. Overview of reportable segments
The Group’s reportable segments are components of the Group about which separate financial information isavailable. These segments are subject to periodic examinations to enable the company’s Board of Directors todecide how to allocate resources and assess performance.
The Group’s segment is categorized based on the business of its operating company, and thus its main segments,
the “Pharmaceutical Wholesale Business,” the “Pharmacy Business,” and the “Veterinary Drug Wholesale
Business” comprise the Group’s reportable segments.
The “Pharmaceutical Wholesale Business” is engaged in sales of drugs, diagnostic products, medical devices,materials, etc. to medical institutions, such as hospitals, clinics, and pharmacies. The “Pharmacy Business” isengaged in sales of drugs, medical devices and equipment, and hygiene materials, etc. to general consumers. The“Veterinary Drug Wholesale Business” is engaged in sales of veterinary drugs, feeds, etc. to farms, ranches,
veterinary hospitals, clinics, etc.
(Notes relating to changes in reportable segments, etc.)
From the fiscal year ended March 31, 2022, the “Pharmacy Business,” which was previously included in the20

“Others,” has been classified as a reportable segment as a result of review of the classification method ofbusiness segments.
The segment information for the previous consolidated fiscal year has been prepared based on the classification
after the change.
As described in the changes in accounting policies, the Company has applied the Accounting Standard for
Revenue Recognition from the beginning of the year ended March 31, 2022 and changed the accounting method
regarding revenue recognition, and it has changed the calculation method for profit or loss of business segments
accordingly. The change reduced net sales of the “Pharmaceutical Wholesale Business” in the year ended March
31, 2022 by ¥1,107 million, while it did not affect the segment profit (operating profit). It increased net sales of
the “Veterinary Drug Wholesale Business” by ¥0 million, while it did not affect the segment profit (operating
profit).
2. Method of measurement for the amounts of net sales, income (loss), assets and other items for each reportablesegment
The method of accounting for the reportable business segments is generally the same as those stated in “Basisfor the Presentation of the Consolidated Financial Statements.”
Profit in the reportable segments is based on operating profit.
Inter-segment revenues and transfers are calculated at prevailing market prices.
3. Information on net sales, income (loss), assets and other items by reportable segment
For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Million yen)
Reportable segment
Pharmaceutical
Wholesale
Business
Net sales
Net sales to outside customers
Inter-segment net sales ortransfers
Total

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

Others(Note 1)

Total

Total

Adjustment(Note 2)

Amountrecorded in
Consolidated
Statements ofIncome(Note 3)506,389

16,7729,811

532,972

4,057

537,030-

537,030

7,721

2,018

0

7,723

2,483

10,206(10,206)-

514,110

16,774

9,811

540,696

6,540

547,236(10,206)

537,030

Segment income (loss)(2,542)(19)

401(2,160)(156)(2,316)56(2,260)

Segment assets

293,829

9,763

4,736

308,418

8,685

317,103(5,701)

311,401

2,530

167

9

2,707

168

2,876

-

2,876

15

306

-

322

-

322

-

322

2,223

141

115

2,481

839

3,321

-

3,321

Other items
Depreciation
Amortization of goodwill
Increase in property, plant andequipment, and intangible
assets(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as
wholesale of agricultural chemicals, nursing care service business, transportation business, andconsulting services for medical institutions.
2. Adjustment of segment income (loss) of ¥56 million and adjustment of segment assets of ¥(5,701)
million refer to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income (loss) to operating loss reported on the
consolidated statements of income.

21

For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Million yen)
Reportable segment
Pharmaceutical
Wholesale
Business
Net sales
Net sales to outside customers
Inter-segment net sales ortransfers
Total
Segment income (loss)
Segment assets

Veterinary
Drug
Wholesale
Business

Pharmacy
Business

Others(Note 1)

Total

Total

Adjustment(Note 2)

Amountrecorded in
Consolidated
Statements ofIncome(Note 3)544,249

18,397

10,399573,0474,201

577,249-

577,249

8,811

3

0

8,815

2,502

11,317(11,317)-553,061

18,401

10,399581,862

6,704

588,566(11,317)577,249

2,443

205

371

3,020

(131)

2,889

56

2,945

295,496

10,6105,186

311,292

8,780

320,073(7,039)313,033

2,476

144

14

2,636

144

2,780

-

2,780

15

327

-

343

-

343

-

343

3,218

48

112

3,380

803

4,184

-

4,184

Other items
Depreciation
Amortization of goodwill
Increase in property, plant andequipment, and intangible
assets(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as
wholesale of agricultural chemicals, nursing care service business, transportation business, andconsulting services for medical institutions.
2. Adjustment of segment income (loss) of ¥56 million and adjustment of segment assets of ¥(7,039)
million refer to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income (loss) to operating loss reported on the
consolidated statements of income.

[Related information]
1. Information by product and service
Statement has been omitted as net sales to outside customers in a single product/service category exceed
90% of total net sales in the consolidated statements of income.
2. Information by geographic area
(1) Net sales
Not applicable as there are no net sales to outside customers other than in Japan.
(2) Property, plant and equipment
Not applicable as there are no property, plant or equipment in areas other than in Japan.
3. Information by major customer
Statement has been omitted as no outside customer accounts for 10% or more of total net sales in the
consolidated statements of income.

22

[Information concerning impairment loss on non-current assets by reportable segment]
For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Million yen)
Reportable segment
Pharmaceutical
Wholesale
Business
Impairment loss

Veterinary
Drug
Wholesale
Business

Pharmacy
Business

229

-

-

Total

Others

229

Total

-

229

Adjustment-

Amountrecorded in
Consolidated
Statements ofIncome229

For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Million yen)
Reportable segment

Impairment loss

Pharmaceutical
Wholesale
Business

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

922

23

-

Total

Others

946

Total

-

946

Adjustment-

Amountrecorded in
Consolidated
Statements ofIncome946[Information concerning amortization of goodwill and unamortized balances by reportable segment]
For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Million yen)
Reportable segment
Amountrecorded in
Consolidated
Statements ofIncomePharmaceutical
Wholesale
Business

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

Amortization expense

15

306

-

322

-

322

-

322

Balance at the end of period

50

3,060

-

3,111

-

3,111

-

3,111

Total

Others

Total

Adjustment(Goodwill)

For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Million yen)
Reportable segment
Amountrecorded in
Consolidated
Statements ofIncomePharmaceutical
Wholesale
Business

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

Amortization expense

15

327

-

343

-

343

-

343

Balance at the end of period

35

2,839

-

2,874

-

2,874

-

2,874

Total

Others

Total

Adjustment(Goodwill)23

(Per share information)

Net assets per share

For the fiscal year
ended March 31, 2021
¥1,863.77

For the fiscal year
ended March 31, 2022
¥1,858.86¥21.26¥87.88

Basic earnings per share(Notes) 1. Diluted earnings per share is not stated as there are no dilutive shares.
2. Basis of calculation of basic earnings per share and diluted earnings per share is as follows:
For the fiscal year
For the fiscal year
ended March 31, 2021
ended March 31, 2022
Basic earnings per share
Profit income attributable to owners of
1,171
4,770
parent (Million yen)Amount not attributable to common––
stockholders (Million yen)
Profit attributable to owners of parent
1,171
4,770
relating to common stock (Million yen)
Average number of shares of common
55,10754,280stock outstanding during the period(Thousand shares)
3. Basis for the calculation of net assets per share is as follows:
For the fiscal year
For the fiscal year
ended March 31, 2021
ended March 31, 2022
Total net assets (Million yen)
103,916
100,041
Amount deducted from total net assets
972
1,080
(Million yen)(Non-controlling interests) (Million yen)
(972)
(1,080)Year-end net assets corresponding to102,943
98,961
common shareholders (Million yen)
Number of common stock at the year-end
55,23453,237
used to calculate net assets per share(Thousand shares)(Note) The Company shares held by the Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for the“Board Benefit Trust (BBT)” are included in treasury stock to be deducted in the calculation of average
number of shares during the period for the purpose of calculating basic earnings per share (124 thousand
shares for the fiscal year ended March 31, 2021, and 120 thousand shares for the fiscal year ended March
31, 2022).
(Significant subsequent events)
Not applicable.

24