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 1, 2024

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2024
(Under Japanese GAAP)
Listed Company: Zeria Pharmaceutical Co., Ltd.
(Stock Exchange: Tokyo Stock Exchange)
Code Number: 4559
(URL: https://www.zeria.co.jp/)
Representative: Mitsuhiro Ibe, Representative Director, President & COO
Person in charge of reference: Tomoyuki Nishizawa, Director, Public Relations Division
TEL (03) 3661-1039
Scheduled date to submit the Quarterly Securities Report: February 5, 2024
Scheduled date to commence dividend payments:–
Preparation of supplementary documents to the quarterly financial results:
None
Holding of quarterly financial results presentation:
None(Amounts under a million yen are truncated.)

1. Consolidated Financial Highlights (April 1, 2023 through December 31, 2023)(1) Consolidated Financial Results (cumulative)(Percentage figures indicate changes from the same period of the previous year.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Nine months ended

Million yen%

Million yen%

Million yen%

Million yen%

December 31, 2023

57,919

12.0

9,490

11.0

9,444

35.7

8,423

40.8

December 31, 2022

51,729

14.7

8,550

55.6

6,957

24.0

5,980

47.9

Note: Comprehensive income: For the nine months ended December 31, 2023: 14,999 million yen [15.0%]
For the nine months ended December 31, 2022: 13,040 million yen [501.0%]

Basic earnings
per share

Diluted earnings
per share

Nine months ended

Yen

Yen

December 31, 2023

191.09–December 31, 2022

135.31–(2) Consolidated Financial Position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

December 31, 2023

153,067

78,73751.3

1,780.16

March 31, 2023

135,034

65,68048.5

1,484.79

Reference: Equity: As of December 31, 2023: 78,469 million yen

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

2. Dividends
Annual dividends
First quarter

Second quarter

Third quarter

Yen

Yen

Yen

Yen

Yen

Year ended
March 31, 2023

–

18.00

–

22.00

40.00

Year ending
March 31, 2024

–

22.00

–
22.00

44.00

Year ending
March 31, 2024 (Forecast)
Note: Revision of the forecast of dividends most recently announced: None

Year-endTotal

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

Net sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

73,000

6.8

9,100

0.9

9,000

18.7

7,000

13.0

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

* Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2023 (changes in specified subsidiaries
resulting in changes in scope of consolidation): None
Inclusion: – (Company name: –)Exclusion: – (Company name: –)(2) Application of special accounting for preparing the quarterly consolidated financial statements: Yes
Note: For details, please refer to “2. Quarterly Consolidated Financial Statements and Significant Notes Thereto, (3) Notes to quarterly
consolidated financial statements” on page 8 of the Attached Material.

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after
error corrections
1) Changes in accounting policies due to revisions to accounting standards and other regulations: None
2) Changes in accounting policies due to other reasons: None
3) Changes in accounting estimates: None
4) Restatement of prior period financial statements after error corrections: None

(4) Number of shares issued (common shares)
1) Number of shares issued as of the end of the term (including treasury shares):
As of December 31, 2023: 53,119,190 shares
As of March 31, 2023: 53,119,190 shares
2) Number of shares of treasury shares as of the end of the term:
As of December 31, 2023: 9,039,254 shares
As of March 31, 2023: 9,038,982 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year):
For the nine months ended December 31, 2023: 44,080,096 shares
For the nine months ended December 31, 2022: 44,200,883 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 ............................................................................................................................. 3(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(Significant changes in subsidiaries during the period under review) ...........................................................8(Adoption of special accounting methods for preparation of quarterly consolidated financial statements) ..8(Segment information, etc.) ...........................................................................................................................9
3. Supplemental Information ..................................................................................................................................10(1) Sales results ............................................................................................................................................................ 10(2) Sales of major products and merchandise Consolidated ........................................................................................11(3) Status of pipeline of new drugs .............................................................................................................................. 121

1. Qualitative Information on Quarterly Financial Results(1) Explanation of operating results
Net sales for the first nine months of the fiscal year ending March 31, 2024 were 57,919 million yen (up12.0% from the same period of the previous fiscal year). As for profits, operating profit was 9,490 million yen(up 11.0% from the same period of the previous fiscal year), ordinary profit was 9,444 million yen (up 35.7%
from the same period of the previous fiscal year), and profit attributable to owners of parent was 8,423 million
yen (up 40.8% from the same period of the previous fiscal year). The significant difference in growth ofoperating profit and ordinary profit compared to the growth in the same period of the previous fiscal year was
due to the relatively small amount of foreign exchange losses during the period under review compared to thesignificant foreign exchange losses recorded in the previous period. There was also less fluctuation in
exchange rates during the period under review.
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 in part to the impact of the NHI drug price revision
implemented in April of 2023. Despite this, sales were steady overall as a result of strong performance inregions such as the UK, the Czech Republic, and Germany due to growth in sales of Asacol 1600 mg inoverseas markets. Sales of DIFICLIR, a therapeutic agent for Clostridium difficile infections, achieved asignificant sales growth as a result of continuous aggressive investment of sales resources in overseas
markets, which lead to a significant increase in sales in France, the UK, and Spain. In April 2023, we weretransferred approval from Astellas Pharma Inc. for the manufacturing and marketing of the drug in Japanand worked to promote the product (domestic sales name: Dafclir). However, sales of Entocort (domestic
sales name: Zentacort), an inflammatory bowel disease (IBD) therapeutic agent, struggled after the launchof generic drugs in certain countries outside Japan. With regard to Ferinject, we are working to build themarket, particularly in the obstetrics and gynecology and gastroenterology fields.
As a result, net sales in the business amounted to 37,548 million yen (up 15.8% from the same period of
the previous fiscal year).
(ii) Consumer Healthcare Business
As for the Hepalyse range, our mainstay product, due to the relaxing of behavioral restrictions related to
the COVID-19 pandemic and recovery in the flow of people, sales of both the pharmaceutical Hepalyse
range and the Hepalyse W range for convenience stores increased. Sales of the Chondroitin range also
remained strong, due in part to aggressive advertising and promotional investments. In addition, sales
increased for both the European herbal preparation range, including Prefemin, a treatment forpremenstrual syndrome (PMS), which transferred to a Type-2 OTC drug in April 2023, and the Masdent
range of medicated toothpaste for preventing periodontal disease and bad breath.
Moreover, sales of dermatosis treatments Prevaline α Quick Ointment and Prevaline α Quick Cream werecommenced during the first nine months of the current fiscal year. We will continue working to expand
our lineup of products that address market needs.
As a result, net sales in the business amounted to 20,255 million yen (up 5.6% from the same period of theprevious fiscal year).
(iii) Other
Net sales in this segment amounted to 115 million yen (up 2.3% from the same period of the previous
fiscal year), mainly due to insurance agency business and real estate lease revenue.

2(2) Explanation of financial position
Total assets at the end of the third quarter of the fiscal year ending March 31, 2024 were 153,067 million yen,
an increase of 18,033 million yen from the end of the previous fiscal year. Current assets increased 12,381
million yen to 60,585 million yen from the end of the previous fiscal year, and non-current assets increased
5,651 million yen to 92,482 million yen from the end of the previous fiscal year. Major changes in current
assets included an increase of 3,315 million yen in cash and deposits, an increase of 6,871 million yen in notes
and accounts receivable - trade, and an increase of 1,682 million yen in inventories such as merchandise andfinished goods. The changes in non-current assets were an increase of 1,351 million yen in property, plant andequipment, an increase of 2,037 million yen in intangible assets, and an increase of 2,262 million yen in
investments and other assets.
Total liabilities at the end of the quarter under review were 74,330 million yen, an increase of 4,976 million
yen from the end of the previous fiscal year. Current liabilities increased 8,640 million yen to 55,798 million
yen from the end of the previous fiscal year, and non-current liabilities decreased 3,664 million yen to 18,531
million yen from the end of the previous fiscal year. The main changes in current liabilities were an increaseof 1,389 million yen in accounts payable - trade, an increase of 4,401 million yen in short-term borrowings, anincrease of 1,764 million yen in income taxes payable, and an increase of 1,818 million yen in other current
liabilities including an increase in accounts payable - other. The main changes in non-current liabilities were adecrease of 3,169 million yen in long-term borrowings and a decrease of 897 million yen in provision for loss
on cancellation of contracts.
Net assets at the end of the quarter under review were 78,737 million yen, an increase of 13,057 million yen
from the end of the previous fiscal year. This was mainly due to profit attributable to owners of parent of
8,423 million yen, payment of 1,939 million yen as dividends declared at the end of the previous period and in
the current interim period, an increase of 1,860 million yen in valuation difference on available-for-salesecurities, and an increase of 5,137 million yen in foreign currency translation adjustment.
As a result, the equity ratio at the end of the quarter under review increased by 2.8% from the end of theprevious fiscal year to 51.3%.
(3) Explanation of consolidated financial forecasts and other forward-looking statements
Operating profit, ordinary profit, and profit attributable to owners of parent for the first nine months of the
fiscal year ending March 31, 2024 each exceeded the forecasts for the full year.
Sales in the overseas Ethical Pharmaceuticals Business are growing faster than expected. However, the impact
of soaring prices of raw materials and energy and foreign exchange trends are uncertain. The full-year
consolidated financial forecast for the fiscal year ending March 31, 2024, therefore, remains unchanged fromthe consolidated financial forecast announced on May 11, 2023. 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, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Sales right
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for loss on cancellation of contracts
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4

As of December 31, 2023

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

19,534,580
24,384,166
7,473,192
1,864,899
5,108,333
2,329,515(109,161)
60,585,525

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

6,605,176
12,583,136
6,754,196
25,942,508

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

4,960,490
29,642,410
9,365,457
43,968,358

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

9,232,900
12,858,642
521,034(41,021)
22,571,556
92,482,423
153,067,949

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

3,385,617
39,292,199
2,513,594
820,6789,786,550
55,798,641

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

11,372,100–
220,657
56,187
6,882,472
18,531,416
74,330,057

(Thousands of yen)
As of March 31, 2023
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of December 31, 2023

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

6,593,398
11,685,121
59,946,394(18,265,590)
59,959,324(314,469)
8,015,623
4,272,642
11,973,796
230,793
65,680,710
135,034,536

1,546,298
13,153,415
3,810,340
18,510,053
268,51478,737,892
153,067,949

(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, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Recoveries of written off receivables
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
Reversal of provision for loss on cancellation ofcontracts
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
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, 2023

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

57,919,196
15,048,408
42,870,787
33,380,055
9,490,732

35,835226,956–
61,925
324,716

87,845285,81492,93585,028551,624265,520
1,628,114
23,855
1,917,490
6,957,928

346,315
142,536
108,566
597,417
9,444,938

1,371
19,940–0–955,980

21,312955,980

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

6,693
198,726–
205,420
10,195,499
1,757,619
8,437,879
14,5488,423,331

Quarterly consolidated statement of comprehensive income(Thousands of yen)
Nine months ended
December 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Nine months ended
December 31, 2023

5,996,710

8,437,879

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

1,860,767
5,163,209(462,302)
6,561,675
14,999,555

12,974,810

14,959,588

65,31339,966

(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.
(Significant changes in subsidiaries during the period under review)Not applicable.
During the quarter under review, the Company’s consolidated subsidiary Tillotts Pharma AG established
Mage Biologics Inc., which is now accounted for by the equity method, through a joint investment with TVM
Capital Life Science.
(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.

8

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

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 (3,672,502) 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.
Ⅱ First nine months of the current fiscal year (from April 1, 2023 to December 31, 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)

57,919,196–

57,919,196

483,506

494,993(494,993)–

57,814,752

599,437

58,414,190(494,993)

57,919,196

13,136,300

188,828

13,325,128(3,834,396)

9,490,732

Reportable segment

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

Other(Note 1)

EthicalPharmaceuticals
Business

Consumer
Healthcare
Business

Total

37,548,081

20,255,184

57,803,265

115,930

11,377

109

11,48637,559,459

20,255,293

8,952,129

4,184,170

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 (3,834,396) 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
(from April 1, 2023
to December 31, 2023)

Name of segment

Increase/(decrease)over the same period of
the previous fiscal year (%)

Ethical Pharmaceuticals Business

37,548,081

15.8

Consumer Healthcare Business

20,255,184

5.6

57,803,265

12.0

115,930

2.3

57,919,196

12.0

Total reportable segment
Other
Total
(Note)

Inter-segment transactions are offset and eliminated.

10(2) Sales of major products and merchandise Consolidated(Thousands of yen)First nine months ofthe previous fiscal year
(from April 1, 2022
to December 31, 2022)

First nine months ofthe current fiscal year
(from April 1, 2023
to December 31, 2023)

Percentage change(%)

32,434,601

37,548,081

15.8

Asacol

14,707,351

15,882,926

8.0

DIFICLIR

6,176,534

10,092,320

63.4

Entocort

4,264,496

3,910,148(8.3)

Acofide2,373,300

2,384,276

0.5

Other

4,912,917

5,278,408

7.4

19,181,759

20,255,184

5.6

Hepalyse range

7,766,749

8,773,756

13.0

Chondroitin range

4,208,322

4,452,297

5.8

WithOne range

962,794

972,652

1.0

6,243,893

6,056,478(3.0)

113,377

115,930

2.3

51,729,738

57,919,196

12.0

1. Ethical Pharmaceuticals Business

2. Consumer Healthcare Business

Other
3. Other Business
Total

11

(3) Status of pipeline of new drugs
I.

Domestic

As of February 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

OriginPhase III(Europe)

Z-338/Acotiamide

Zeria

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original

NDA 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)

NDA filed(Vietnam)Z-338/Acotiamide

Pharmaceutical
Joint Stock
Company ofFebruary 3rd

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original

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

Faes Farma

Functional
dyspepsia

Upper gastrointestinal
motility modulator

Original(Out-licensed)

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