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 1, 2024

Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2025
(Under Japanese GAAP)
Listed Company: Zeria Pharmaceutical Co., Ltd.
(Stock Exchange: Tokyo Stock Exchange)
Code Number: 4559
(URL: https://www.zeria.co.jp/english/)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 commence dividend payments:–
Preparation of supplementary documents to the financial results:
None
Holding of financial results presentation:
None(Amounts under a million yen are truncated.)

1. Consolidated Financial Highlights (April 1, 2024 through June 30, 2024)(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, 2024

21,455

17.2

3,939

32.6

5,459

62.7

4,212

44.5

June 30, 2023

18,304

12.3

2,970

(0.2)

3,355

12.8

2,915

12.1

Note: Comprehensive income: For the three months ended June 30, 2024:
For the three months ended June 30, 2023:

Basic earnings
per share

3,318 million yen [26.5%]
2,622 million yen [(19.6)%]

Diluted earnings
per share

Three months ended

Yen

Yen

June 30, 2024

95.57

–

June 30, 2023

66.14

–

(2) Consolidated Financial Position
Total assets
As of

Net assets

Equity ratio

Million yen

Million yen%

June 30, 2024

152,115

82,177

53.9

March 31, 2024

150,533

79,82852.9

Reference: Equity: As of June 30, 2024: 81,931 million yen

As of March 31, 2024: 79,622 million yen

2. Dividends
Annual dividends
First quarter

Second quarter

Third quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended
March 31, 2024

–

22.00

–

22.00

44.00

Year ending
March 31, 2025

–
23.00

–

23.00

46.00

Year ending
March 31, 2025 (Forecast)

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

3. Consolidated Financial Forecast for Fiscal Year Ending March 31, 2025 (April 1, 2024 through March 31, 2025)(Percentage figures indicate changes from the same period of the previous year.)
Basic
Profit attributable toOperating profit
Ordinary profit
earnings
owners of parent
per share

Net sales
Million yen%

Million yen%

First six months

41,000

Full year

83,000Million yen

11.8

5,600

5.1

5,600

9.6

10,000

3.9

10,000%Million yen

%

Yen

1.9

4,300

(20.3)

97.55

17.5

7,800

0.9

176.95

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

* Notes(1) Significant changes in the scope of consolidation during the period: 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 (Notes on special accounting methods for preparation of quarterly consolidated financial statements)” on
page 8 of the Attached Material.

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

(4) Number of shares issued (common shares)
1) Number of shares issued as of the end of the term (including treasury shares):
As of June 30, 2024: 53,119,190 shares
As of March 31, 2024: 53,119,190 shares
2) Number of shares of treasury shares as of the end of the term:
As of June 30, 2024: 9,039,525 shares
As of March 31, 2024: 9,039,354 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year):
For the three months ended June 30, 2024: 44,079,743 shares
For the three months ended June 30, 2023: 44,080,208 shares* Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified
public accountants or an audit corporation: None
* 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. Summary of Business Results (3) Explanation of consolidated financial forecasts andother forward-looking statements” on page 3 of the Attached Material.

○Table of contents of attachments
1. Summary of Business Results ..............................................................................................................................2(1) Summary of business results for the period under review ......................................................................................... 2(2) Overview of financial position for the period under review ...................................................................................... 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 change in accounting policy).........................................................................................................8(Notes on special accounting methods for preparation of quarterly consolidated financial statements) .......8(Notes on segment information, etc.).............................................................................................................9(Notes on significant changes in the amount of shareholders’ equity) ........................................................10(Notes on premise of a going concern) ........................................................................................................10(Notes on quarterly consolidated statements of cash flows) ........................................................................10
3. Supplemental Information .................................................................................................................................. 11(1) Sales of major products and merchandise Consolidated .......................................................................................... 11(2) Status of pipeline of new drugs ..................................................................................................................................12

1

1. Summary of Business Results(1) Summary of business results for the period under review
Net sales for the first three months of the fiscal year ending March 31, 2025 were 21,455 million yen (up17.2% from the same period of the previous fiscal year). Operating profit amounted to 3,939 million yen (up32.6% from the same period of the previous fiscal year). Ordinary profit was 5,459 million yen (up 62.7%
from the same period of the previous fiscal year), and profit attributable to owners of parent was 4,212 million
yen (up 44.5% from the same period of the previous fiscal year). The increases in ordinary profit and below
were due to an increase in sales and large foreign exchange gains resulting from the depreciation of the Swiss
franc against the euro, British pound and other European currencies.
Below 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 to the NHI price revision implemented in April 2024.
Despite this, sales increased overall as a result of strong sales in overseas markets, including Northern
Europe, and the impact of foreign exchange rates. Sales of DIFICLIR (domestic sales name: Dafclir)achieved a significant sales growth in France, Spain, Germany and other countries. Sales of Entocort(domestic sales name: Zentacort), an inflammatory bowel disease therapeutic agent, increased due tostrong sales in Canada. Sales of Acofide, a drug for functional dyspepsia, were almost on a par with theprevious fiscal year.
As a result, net sales in the business amounted to 14,650 million yen (up 22.6% from the same period of
the previous fiscal year).
(ii) Consumer Healthcare Business
Sales of the mainstay product, Hepalyse range, increased mainly in the pharmaceutical Hepalyse range.
Sales of the Chondroitin range and the WithOne range of botanical laxative products also remained strong.
In addition, sales of the Prevaline range of dermatosis treatments, also increased, with sales of Prevaline α
Quick Ointment and Prevaline α Quick Cream, which were launched in November 2023, performing well.
As a result, net sales in the business amounted to 6,768 million yen (up 7.1% from the same period of theprevious fiscal year).
(iii) Other
Net sales in this segment amounted to 36 million yen (down 4.4% from the same period of the previous
fiscal year), mainly due to insurance agency business and real estate lease revenue.
(2) Overview of financial position for the period under review
Total assets at the end of the first quarter of the fiscal year ending March 31, 2025 were 152,115 million yen,
an increase of 1,582 million yen from the end of the previous fiscal year. Current assets increased 2,698
million yen to 60,507 million yen from the end of the previous fiscal year, and non-current assets decreased
1,115 million yen to 91,608 million yen from the end of the previous fiscal year. Major changes in current
assets included a decrease of 426 million yen in cash and deposits and an increase of 2,500 million yen innotes and accounts receivable - trade. Main changes in non-current assets were a decrease of 1,370 million
yen in intangible assets.
Total liabilities at the end of the quarter under review were 69,938 million yen, a decrease of 766 million yen
from the end of the previous fiscal year. Current liabilities increased 37 million yen to 54,556 million yen
from the end of the previous fiscal year, and non-current liabilities decreased 803 million yen to 15,382
million yen from the end of the previous fiscal year. The changes in current liabilities were an increase of 116
2

million yen in accounts payable - trade, a decrease of 987 million yen in short-term borrowings, an increase of
861 million yen in income taxes payable, a decrease of 146 million yen in provision for bonuses, and anincrease of 194 million yen in other of current liabilities, including an increase in accrued expenses. Mainchange in non-current liabilities was a decrease of 832 million yen in long-term borrowings.
Net assets at the end of the quarter under review were 82,177 million yen, an increase of 2,348 million yen
from the end of the previous fiscal year. This was mainly due to profit attributable to owners of parent of
4,212 million yen, payment of 969 million yen as dividends declared at the end of the previous period, and adecrease of 876 million yen in foreign currency translation adjustment.
As a result, the equity ratio at the end of the quarter under review increased by 1.0% from the end of theprevious fiscal year to 53.9%.
(3) Explanation of consolidated financial forecasts and other forward-looking statements
As for the business results for the first three months of the fiscal year ending March 31, 2025, net sales andoperating profit were generally in line with the plan, especially in the overseas Ethical Pharmaceuticals
Business. Ordinary profit and profit attributable to owners of parent exceeded the plan, partly due to large
foreign exchange gains.
The second quarter and beyond is expected to mainly be in line with expectations, and we are not updating ourconsolidated financial forecast announced on May 9, 2024 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, 2024
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
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4

As of June 30, 2024

20,323,724
21,249,302
7,569,173
1,842,077
5,078,508
1,915,485(169,241)57,809,029

19,897,538
23,749,913
8,181,428
1,580,768
4,955,539
2,308,713(166,728)
60,507,173

6,607,334
12,581,849
7,328,652
26,517,836

6,535,322
12,585,135
7,515,730
26,636,189

4,262,818
29,496,467
9,380,420
43,139,706

4,140,263
28,470,445
9,158,817
41,769,527

9,145,154
13,410,761
552,538(41,433)
23,067,020
92,724,563
150,533,593

9,346,995
13,359,612
537,947(41,474)
23,203,080
91,608,797
152,115,970

3,273,950
38,283,719
1,967,210
1,584,737
9,408,853
54,518,471

3,390,190
37,296,569
2,828,304
1,438,026
9,603,150
54,556,240

7,943,800
458,109
56,2397,728,181
16,186,329
70,704,801

7,111,350
476,190
56,292
7,738,649
15,382,482
69,938,723

(Thousands of yen)
As of March 31, 2024
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, 2024

6,593,398
11,685,121
59,254,325(18,265,810)
59,267,035

6,593,398
11,685,121
62,497,346(18,266,163)
62,509,703

2,001,571
14,660,305
3,693,650
20,355,527
206,229
79,828,792
150,533,593

2,136,549
13,783,374
3,502,265
19,422,189
245,353
82,177,247
152,115,970

(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, 2023
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
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, 2024

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

21,455,861
5,476,557
15,979,304
12,039,666
3,939,638

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

56,109223,8291,296,868
68,238
1,645,045

110,727
6,373
117,101
3,355,717

115,163
10,032
125,195
5,459,488

–
–

1,773
1,773

–
–
3,355,717
441,923
2,913,793(1,626)2,915,420

005,461,262
1,222,267
4,238,994
26,217
4,212,777

Quarterly consolidated statement of comprehensive income(Thousands of yen)Three months ended
June 30, 2023
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, 2024

2,913,793

4,238,994

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

134,977(864,025)(191,384)(920,433)
3,318,561

2,622,878

3,279,439(310)

39,121

(3) Notes to quarterly consolidated financial statements(Notes on change in accounting policy)
Application of the “Accounting Standard for Current Income Taxes” and other relevant ASBJ regulations
The Company has applied the “Accounting Standard for Current Income Taxes” (Accounting Standards Boardof Japan (ASBJ) Statement No. 27, October 28, 2022; the “Revised Accounting Standard of 2022”) and otherrelevant ASBJ regulations from the beginning of the first quarter of the current fiscal year.
Revisions to categories for recording current income taxes (taxation on other comprehensive income) conformto the transitional treatment in the proviso of paragraph 20-3 of the Revised Accounting Standard of 2022 andto the transitional treatment in the proviso of paragraph 65-2(2) of the Guidance on Accounting Standard forTax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter, the “Revised Application
Guidance of 2022”). This change has no impact on the quarterly consolidated financial statements for thecurrent fiscal year.
In addition, for revisions related to the review of the treatment in consolidated financial statements when again or loss on sale arising from the sale of shares of subsidiaries, etc. among consolidated companies isdeferred for tax purposes, the Company has applied the Revised Application Guidance of 2022 from the
beginning of the first quarter of the current fiscal year. The change in accounting policy has been applied
retrospectively, and the quarterly consolidated financial statements and consolidated financial statements forthe same period of the previous fiscal year and for the previous fiscal year have been prepared on aretrospective basis. This change has no impact on the quarterly consolidated financial statements andconsolidated financial statements for the same period of the previous fiscal year and for the previous fiscal
year.
(Notes on 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

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

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 (1,335,761) 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.
Ⅱ First three months of the current fiscal year (from April 1, 2024 to June 30, 2024)
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)

21,455,861–

21,455,861

181,694

181,759(181,759)–

21,419,046

218,574

21,637,620(181,759)

21,455,861

5,213,659

62,901

5,276,561(1,336,923)

3,939,638

Reportable segment
Other(Note 1)

EthicalPharmaceuticals
Business

Consumer
Healthcare
Business

Total

14,650,841

6,768,140

21,418,981

36,879–64

64

14,650,841

6,768,204

3,740,019

1,473,640

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 (1,336,923) 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(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Notes on premise of a going concern)
Not applicable.
(Notes on quarterly consolidated statements of cash flows)
The quarterly consolidated statements of cash flows have not been prepared for the first three months of thecurrent fiscal year. Depreciation (including amortization related to intangible assets excluding goodwill) andamortization of goodwill for the first three months are as follows.
First three months ofthe previous fiscal year
(from April 1, 2023, to June 30, 2023)(Thousands of yen)First three months ofthe current fiscal year
(from April 1, 2024, to June 30, 2024)

1,486,814
180,529

1,693,153
177,009

Depreciation
Amortization of goodwill

10

3. Supplemental Information(1) Sales of major products and merchandise Consolidated(Thousands of yen)First three months of the First three months of theprevious fiscal year (from current fiscal year (from
April 1, 2023, to June 30, April 1, 2024, to June 30,
2023)
2024)
1. Ethical Pharmaceuticals Business

Percentage change(%)

11,947,965

14,650,841

22.6

Asacol5,189,868

5,495,361

5.9

DIFICLIR

3,238,281

5,157,272

59.3

Entocort

1,092,305

1,570,726

43.8

Acofide770,702765,854

(0.6)

Other

1,656,807

1,661,627

0.3

6,317,994

6,768,140

7.1

Hepalyse range

2,557,467

2,800,364

9.5

Chondroitin range

1,407,737

1,448,849

2.9

WithOne range

293,355

333,282

13.6

2,059,434

2,185,643

6.1

38,57136,879(4.4)

18,304,531

21,455,861

17.2

2. Consumer Healthcare Business

Other
3. Other Business
Total

11

(2) Status of pipeline of new drugs
I.

Domestic

As of August 1, 2024

Stage

Development Code/
Generic Name

Development

Indications

Classification

OriginNDA filed

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

OriginNDA approved(Honduras,
Dominican
Republic, Ecuador,
Chile, El Salvador,
Peru)

Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original(Out-licensed)

NDA approved(Thailand)

Z-338/Acotiamide

Meiji Seika
PharmaFunctional
dyspepsia

Upper gastrointestinal
motility modulator

Original(Out-licensed)

Z-338/Acotiamide

Pharmaceutical
Joint Stock
Company ofFebruary 3rd

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original

NDA filed(Singapore)

Z-338/Acotiamide

United Italian
Trading
Corporation
Pte. Ltd.

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original(Out-licensed)

NDA filed(Colombia, Costa
Rica, Guatemala,Panama, Nicaragua)Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original(Out-licensed)

Phase III(Europe, UnitedStates, Canada)Z-338/Acotiamide

Agastra-Lab
s.r.l.

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original(Out-licensed)

NDA filed(Vietnam)

Launched in Overseas
Launch Date

Development Code/
Generic Name

Development

Indications

Classification

OriginOctober 2023
(Mexico)Z-338/Acotiamide

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original(Out-licensed)

12