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.

May 10, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(Under Japanese GAAP)
Company name: TSUMURA & CO.
Listing:
Tokyo Stock Exchange
Securities code:
4540
URL:
https://www.tsumura.co.jp
Representative:
Terukazu Kato, President Representative Director and CEO
Inquiries:
Ritsuko Inukai, Head of Corporate Communications Dept.
Telephone:+81-3-6361-7100
Scheduled date of annual general meeting of shareholders:June 29, 2022
Scheduled date to commence dividend payments:
June 30, 2022
Scheduled date to file annual securities report:
June 29, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors, securities analysts
and news media)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated business results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31,
2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2022

129,546

11.3

22,37615.4

25,90424.1

18,836

22.9

March 31, 2021

116,413－

19,382－

20,866－

15,332－

Note: Comprehensive income

For the fiscal year ended March 31, 2022:
For the fiscal year ended March 31, 2021:

Basic earnings
per share

Diluted earnings
per share¥29,889 million¥17,381 million

Return on equity[72.0 %]
[ － %]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales%%

Fiscal year ended

Yen

March 31, 2022

246.21

－

8.2

7.7

17.3

March 31, 2021

200.40

－

7.2

6.6

16.6

Reference:Yen%equity in earnings of affiliates
For the fiscal year ended March 31, 2022:¥ －million
For the fiscal year ended March 31, 2021:¥115 million
Note: The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. has been applied from the
beginning of the fiscal year under review, and figures for the fiscal year ended March 31, 2021 are those after retroactively applying the
Accounting Standard, etc. Therefore, the ratio of year-on-year change is not stated for the fiscal year ended March 31, 2021.

(2) Consolidated financial condition
Total assets
As of

Net assets

shareholder’s equity ratio

shareholders’ equity per
share

%

Yen

Millions of yen

Millions of yen

March 31, 2022

350,981258,10968.3

3,133.97

March 31, 2021

319,063

233,16968.3

2,846.58

Reference:

EquityAs of March 31, 2022:
As of March 31, 2021:¥239,770 million¥217,786 million(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

21,314(9,111)(8,181)

67,536

March 31, 2021

16,102(7,352)(10,425)

59,668

2. Dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)

Yen

Fiscalyear-end

Yen

Total cash
dividends(Total)

Total

Yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

－

32.00

－

32.00

64.00

4,896

31.9

2.3

－

32.00

－

32.00

64.00

4,896

26.0

2.1

－

32.00

－

32.00

64.00

32.6

3. Projections of consolidated business results for the term ending March 31, 2023
(From April 1, 2022 to March 31, 2023)(Figures in percentage show the rate of increase or decrease from the previous fiscal year for full-year
and from the second quarter of the previous fiscal year for second quarter (aggregate).)Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent
Million yen

First half
Full-year

67,000138,500% Million yen

5.6
6.9

9,800
20,800% Million yen(16.1)(7.0)

10,00021,200% Million yen(25.4)(18.2)

7,400
15,000%(25.7)(20.4)

Yen

96.72
196.06

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

76,758,362 shares

As of March 31, 2021

76,758,362 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

251,343 shares

As of March 31, 2021

250,402 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2022

76,507,513 sharesFiscal year ended March 31, 2021

76,508,174 shares* This Consolidated Financial Results is not subject to audit procedures performed by a certified public
accountant or audit corporation.

*Explanation about the proper use of financial projections and other important notes(Note about forward-looking information)
Forward-looking statements such as financial projections, which are stated in this document, are based on
information currently available to the Company and certain assumptions deemed reasonable. There is apossibility that actual results, etc. will differ materially from forecasts due to various factors. Please see “1.
Overview of Operating Results, etc. (4) Future outlook” on page 4 for information regarding the forecast of
consolidated financial results.

○Contents of accompanying materials
1. Overview of Operating Results, etc. ·······································································································

2(1) Overview of operating results for the fiscal year ended March 31, 2022 ·························································

2(2) Overview of financial condition during the fiscal year ended March 31, 2022 ··················································

3(3) Overview of cash flow during the fiscal year ended March 31, 2022 ·····························································

3(4) Future outlook ····························································································································

4

2. Basic idea of the selection of accounting standards······················································································

4

3. Consolidated Financial Statements and Key Notes ······················································································

5(1) Consolidated Balance Sheets ···········································································································

5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ······························

7(3) Consolidated Statements of Changes in Equity ······················································································

9(4) Consolidated Statements of Cash Flows ·····························································································

11(5) Notes to the Consolidated Financial Statements ····················································································

13(Notes on premise of a going concern) ······························································································

13(Changes in accounting policies) ·····································································································

13(Segment information) ·················································································································

13(Per share information) ················································································································

14(Significant subsequent events) ·······································································································

141

1. Overview of Operating Results, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March
31, 2020), etc. from the beginning of the fiscal year under review and makes a comparative analysis with theprevious fiscal year, using figures after retroactively applying the Accounting Standard, etc.
(1) Overview of operating results for the fiscal year ended March 31, 2022
Consolidated business results for the fiscal year under review were as follows:[Consolidated business results]
Fiscal year ended March 31,
2021

Fiscal year ended March 31,
2022(Million yen)
YoY Change
Percent Change

116,413

129,546+13,132+11.3%

Domestic sales

110,053

119,567+9,514+8.6%

Overseas sales

6,360

9,978

+3,618+56.9%

Cost of sales

55,94963,081+7,131+12.7%

Selling, general andadministrative expenses

41,081

44,088+3,006+7.3%

Operating profit

19,382

22,376+2,994+15.4%

Ordinary profit

20,86625,904+5,038+24.1%

Profit attributable to owners ofparent15,332

18,836+3,504+22.9%Net sales

Net sales increased 11.3% year on year, to 129,546 million yen.
Domestic net sales were 119,567 million yen. While affected by the spread of COVID-19, particularly an increase in the number ofpeople who avoided seeing doctors, the Company expanded e-promotions, which resulted in an 8.1% year-on-year increase in sales of
129 prescription Kampo preparations. Sales of Daikenchuto, a mainstay item for the Company and a drug fostering formulation*1
grew 3.4%. Sales of Rikkunshito increased 8.3% year on year. Of Growing formulations*2, Goreisan and Kamishoyosan sold well.
Overseas net sales were 9,978 million yen. Sales on crude drug platforms (of Ping An Tsumura Pharmaceutical Co., Ltd., Shenzhen
Tsumura Medicine Co., Ltd., etc.), primarily sales of crude drugs and crude drug pieces for decoction, grew.
Cost of sales increased 12.7% year on year, to 63,081 million yen, reflecting the growth in net sales. The cost-to-sales ratio rose 0.6
percentage points year on year, to 48.7%.
Selling, general and administrative expenses increased 7.3% year on year, to 44,088 million yen. This was mainly due to a rise in
expenses for activities associated with e-promotions. The SGA ratio fell 1.3 percentage points year on year, to 34.0%.
As a result, operating profit increased 15.4% year on year, to 22,376 million yen. The operating profit margin was 17.3%, rising 0.7
percentage points from a year ago. Ordinary profit rose 24.1% year on year, to 25,904 million yen, thanks to the impact of foreignexchange gains, and profit attributable to owners of parent increased 22.9% year on year, to 18,836 million yen.
The Company is still affected by restrictions on economic activity caused by the spread of COVID-19. The business environment
surrounding the Company remains challenging. In this environment, the Company will focus on its mission of supplying products
stably as a pharmaceutical company.
*1 five “Drug fostering” program formulations:
Formulations the Company is addressing by looking hard at the structure of diseases in recent years, targeting diseases that are difficult
to treat with new drugs for which prescription Kampo preparations prove specifically effective in domains where demand for medical
treatment is high, and calling the establishment of evidence “drug fostering”*2 five “Growing” formulations:
Growth drivers aimed at registration in clinical practice guidelines as strategic formulations after five drug fostering program
formulations by constructing evidence (such as data on safety and effectiveness) in domains where the degree of satisfaction with medical
treatment and the degree of drug contribution are low
2[Initiatives in response to COVID-19 pandemic and impact on performance]
There was no impact on product supply either in Japan or overseas in the fiscal year under review. The performance of certain businessactivities were affected by COVID-19, including activities to visits to medical institutions to provide information.
The business environment remains uncertain. In this environment, the Company will continue to pay attention to changes in thecircumstances and strive to maintain production and distribution and gather and provide information, while giving close attention topreventing infection.
(2) Overview of financial position during the fiscal year ended March 31, 2022
The financial position at the end of the fiscal year under review was as follows.
Total assets at the end of the fiscal year under review increased 31,917 million yen from the end of the previous fiscal year, to 350,981
million yen. Current assets increased 25,146 million yen from the end of the previous fiscal year, mainly due to a rise in inventories.
Non-current assets increased 6,771 million yen from the end of the previous fiscal year, mainly due to an increase in buildings andstructures, offsetting a decrease in investment securities.
Total liabilities were 92,871 million yen, an increase of 6,977 million yen from the end of the previous fiscal year. Notes and accounts
payable – trade increased, but current liabilities shrank 2,505 million yen from the end of the previous fiscal year, mainly due to a
decline in the current portion of long-term borrowings. Non-current liabilities grew 9,482 million yen from the end of the previous
fiscal year, mainly reflecting an increase in long-term borrowings.
Net assets totaled 258,109 million yen, an increase of 24,940 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 13,880 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 8,103 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign
currency translation adjustment. Non-controlling interests increased 2,956 million yen from the end of the previous fiscal year.
As a result, the equity ratio remained the same as the previous fiscal year at 68.3%.
(3) Overview of cash flow during the fiscal year ended March 31, 2022
Cash flows in the fiscal year under review were as follows:
For the fiscal year under review, cash provided by operating activities was 21,314 million yen, cash used in investing activities was
9,111 million yen and cash used in financing activities was 8,181 million yen.
Cash provided by operating activities was 21,314 million yen. Looking at its breakdown, a major cash inflow item was profit before
income taxes of 25,563 million yen, while a major cash outflow item was income taxes paid of 7,074 million yen. Compared to theprevious fiscal year, cash inflow increased 5,211 million yen.
Cash used in investing activities was 9,111 million yen. Looking at its breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 10,174 million yen. Compared to the previous fiscal year, cash outflow increased 1,759 million yen.
Cash used in financing activities was 8,181 million yen. Looking at its breakdown, a major cash outflow item was dividends paid of
4,896 million yen. Compared to the previous fiscal year, cash outflow decreased 2,244 million yen.
As a result, cash and cash equivalents increased 7,867 million yen from the end of the previous fiscal year, to 67,536 million yen.

3(4) Future outlook
In view of the growth of prescription Kampo products in Japan as well as China business, the net sales forecast for the fiscal year
ending March 31, 2023 is 138,500 million yen. Net sales from overseas business are expected to account for 14,300 million yen of thistotal. Profit forecasts are operating profit of 20,800 million yen [ down7.0%] , ordinary profit of 21,200 million yen [ down18.2%] ,and profit attributable to owners of parent of 15,000 million yen [ down20.4%] .
In Japan, in addition to MRs providing information in person, the Company will run a hybrid promotion using digital technology,
where it will provide the necessary information to different healthcare workers through the most suitable channels at the appropriate
times, thereby offering the optimal customer experience. In this way, the Company will strive to continue expanding the Kampo
market. Overseas, the Company will take steps to enter the traditional Chinese medicinal product business alongside the expansion ofsales of crude drugs and crude drug pieces for decoction using its crude drug platforms. At present, it is difficult to accurately predict
when the coronavirus outbreak will end, but if the situation changes, the Company will disclose information in a timely andappropriate manner.
With the safety of its employees, customers and business partners as its number one priority, the Company will continue seeking toprevent the spread of the coronavirus, determining a course of action based on Government guidance and action plans while seeking tocontinue business in an appropriate manner.

Net sales
Fiscal year ended March
31, 2023〔Year-on-year change
after adjustment〕

Operating profit

Ordinary profit(Million yen)
Profit attributable toowners of parent

138,500

20,80021,20015,0006.9%（7.0％)（18.2％)（20.4％)

2. Basic idea of the selection of accounting standards
Tsumura and its group companies plan to prepare consolidated financial statements based on the Japanese standards for the time being.
The companies will consider adopting the IFRS in an appropriate manner, taking into account conditions in Japan and overseas.

4

3. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Million yen)
As of March 31, 2021
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

As of March 31, 2022

61,31048,623
13,93913,39653,41913,637(53)

67,55254,87910,247
13,614
68,88914,360(123)

204,273

229,420

Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Construction in progress
Other
Accumulated depreciation

74,533
61,483
12,294
9,051
13,923499(87,609)89,56370,18913,288
9,051
3,488
602
(96,143)

Total property, plant and equipment

84,17690,040Intangible assets
Goodwill
Other

7,881
3,561

8,513
3,814

Total intangible assets

11,443

12,328Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets

11,445
2,252
500
4,972
(0)
19,170114,789

10,184
2,842
660
5,504
(0)
19,192
121,561

319,063

350,981

Total assets

5

(Million yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

As of March 31, 2022

8,593
10,472

13,676
10,313Current portion of long-term borrowings

12,380－Accounts payable - other
Income taxes payable
Other

5,607
4,057
7,269

7,222
3,271
11,392

Total current liabilities

48,38045,87530,00030,000－9,377

Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Other

231
1,179
61
6,041

287
1,179
55
6,096

Total non-current liabilities

Non-current liabilities
Bonds payable
Long-term borrowings

37,513

46,996

Total liabilities

85,89492,871

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

30,142
13,789168,989(679)

30,142
13,732
182,929(682)

212,241

226,121

3,180
1,233
2,673
(1,130)
(412)

2,324
2,020
2,673
6,911
(280)

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

5,544

13,648Non-controlling interests

Total accumulated other comprehensive income

15,382

18,339Total net assets

233,169

258,109

319,063

350,981

Total liabilities and net assets

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Million yen)
FY 3/2021(From April 1, 2020
to March 31, 2021)

FY 3/2022(From April 1, 2021
to March 31, 2022)

Net sales
Cost of sales

116,41355,949129,546
63,081Gross profit

60,464

66,465

Selling, general and administrative expenses

41,081

44,088Operating profit

19,382

22,376

474
250

443
248

115

－

366
594

2,474
579

1,801

3,745

286
31

173
44

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign 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
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses

318

218

20,86625,904

0
4

26
114

5

140

0
413

24
457

414

481

Profit before income taxes

20,45625,563

Income taxes - current
Income taxes - deferred

6,235
(519)

6,268
(101)

Total income taxes

5,715

6,167

Profit14,741

19,395

Profit (loss) attributable to non-controlling interests

(591)

559

Profit attributable to owners of parent

15,332

18,836

7

Consolidated Statements of Comprehensive Income(Million yen)
FY 3/2021(From April 1, 2020
to March 31, 2021)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
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 of parent
Comprehensive income attributable to non-controllinginterests

8

FY 3/2022(From April 1, 2021
to March 31, 2022)

14,741

19,395

412
1,146
541
536

(856)
786
10,366
131

2

64

2,640

10,494

17,381

29,88917,616

26,940

(235)

2,949

(3) Consolidated Statements of Changes in Equity
FY 3/2021 (From April 1, 2020 to March 31, 2021)(Million yen)
Shareholders’ equity
Share capital

Capital surplus

30,142

Balance at beginning of period

Retained earnings

14,041

158,610

Total shareholders’equityTreasury shares(678)

202,116

Changes during period
Dividends of surplus(4,896)(4,896)

Profit attributable to owners ofparent15,332

15,332

Change in scope of consolidation

(57)

(57)
(1)

Purchase of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests

(1)

(252)

(252)

Increase in consolidated
subsidiaries - non-controllinginterests－

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

－

(252)

10,378(1)

10,12430,142

13,789168,989(679)

212,241

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

Total net
assets

2,767

87

2,673

(1,318)

(949)

3,260

8,619

213,997

Changes during period
Dividends of surplus(4,896)

Profit attributable to owners ofparent15,332

Change in scope of consolidation(57)

Purchase of treasury shares(1)

Change in ownership interest ofparent due to transactions with
non-controlling interests(252)

Increase in consolidated
subsidiaries - non-controllinginterests
Net changes in items other thanshareholders' equity

7,567

7,567

412

1,146

－

187

536

2,283

(803)

1,479

Total changes during period

412

1,146

－

187

536

2,283

6,763

19,171

Balance at end of period

3,180

1,233

2,673

(1,130)

(412)

5,544

15,382

233,169

9

FY 3/2022 (From April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity
Share capital

Capital surplus

30,142

Balance at beginning of period

Retained earnings

13,789Total shareholders’equityTreasury shares

168,989(679)

212,241

Changes during period
Dividends of surplus(4,896)(4,896)

Profit attributable to owners ofparent18,836

18,836(3)

Purchase of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests

(3)

(56)

(56)

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

－

(56)

13,940(3)

13,88030,142

13,732

182,929(682)

226,121

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

Total net
assets

3,180

1,233

2,673

(1,130)

(412)

5,544

15,382

233,169

Changes during period
Dividends of surplus(4,896)

Profit attributable to owners ofparent18,836

Purchase of treasury shares(3)

Change in ownership interest ofparent due to transactions with
non-controlling interests(56)

Net changes in items other thanshareholders' equity

(856)

786

－

8,041

131

8,103

2,956

11,060Total changes during period

(856)

786

－

8,041

131

8,103

2,956

24,940

Balance at end of period

2,324

2,020

2,673

6,911

(280)

13,64818,339258,10910

(4) Consolidated Statements of Cash Flows(Million yen)
FY 3/2021(From April 1, 2020
to March 31, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sale and retirement of property, plant andequipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Loss (gain) on sale of short-term and long-term investment
securities
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Other, net

FY 3/2022(From April 1, 2021
to March 31, 2022)

20,456
8,210
405
31
(724)
286

25,563
8,743
446
60
(692)
173

(115)

－

413

455

(1,408)(4,515)(1,612)(5,515)(5,496)
3,789

(4)

(114)

(281)
5
127

(411)
5
909

Subtotal

21,27527,915Interest and dividends received
Interest paid
Income taxes paid

878
(275)
(5,775)682(209)(7,074)

Net cash provided by (used in) operating activities

16,102

21,314

2,631(8,949)1(467)(24,453)

1,748(10,174)66(413)(15,516)

24,465

15,657

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of short-term and long-term investment securities
Proceeds from sale and redemption of short-term and longterm investment securities
Purchase of investments in capital of subsidiaries

(451)

－

Loan advances
Proceeds from collection of loans receivable
Other, net

(156)
2
26

(0)
1
(479)

(7,352)(9,111)

Net cash provided by (used in) investing activities

11

(Million yen)
FY 3/2021(From April 1, 2020
to March 31, 2021)

FY 3/2022(From April 1, 2021
to March 31, 2022)

Cash flows from financing activities
Proceeds from short-term borrowings

1,857

－

Repayments of short-term borrowings(14,086)(171)

Proceeds from long-term borrowings

－

9,377

Repayments of long-term borrowings－(12,337)

7,567－(4,896)(49)(4,896)
(87)

(760)

－

Proceeds from share issuance to non-controllingshareholders
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests ininvestments in capital of subsidiaries that do not result inchange in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(56)

(64)

(10,425)(8,181)

131

3,845

Net increase (decrease) in cash and cash equivalents(1,543)

7,867

Cash and cash equivalents at beginning of period

57,69259,668

Increase in cash and cash equivalents resulting from inclusionof subsidiaries in consolidation

3,519

－

Cash and cash equivalents at end of period

59,66867,53612

(5) Notes to the Consolidated Financial Statements(Notes on premise of a going concern)
There are no applicable matters.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has decided to apply the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;
hereinafter the “Revenue Recognition Accounting Standard”), etc. from the beginning of the fiscal year under review and recognize
revenue from goods or services which the Group promised to provide at an amount expected to be received in exchange for the goods
or services at the time when control over the promised goods or services has been transferred to a customer.
As a result, some expenses which were recorded in cost of sales and selling, general and administrative expenses in the past are
deducted from net sales.
In addition, provision for sales returns, which was recorded in current liabilities in the past, is presented in “Other” under current
liabilities as refund liabilities.
This change in accounting policies is applied retroactively, in principle, and consolidated financial statements for the previous fiscal
year are those after retroactively applying the change. However, the following method stipulated in Paragraph 85 of the Revenue
Recognition Accounting Standard is applied.
(1) For contracts in which the amounts of almost all revenues were recognized in accordance with the previous accounting treatment
prior to the beginning of the previous fiscal year, comparative information shall not be adjusted retroactively.
As a result, net sales for the previous fiscal year decreased 14,469 million yen, cost of sales decreased 2 million yen, and selling,
general and administrative expenses decreased 14,467 million yen, compared to before retroactive application. However, this does nothave an impact on operating profit, ordinary profit, profit attributable to owners of parent, and per share information. There is also no
impact on the balance of retained earnings at the beginning of the previous fiscal year.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has decided to apply the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019;
hereinafter the “Fair Value Measurement Accounting Standard”), etc. from the beginning of the fiscal year under review and apply the
new accounting policy stipulated in the Fair Value Measurement Accounting Standard, etc. according to the provisional treatment
stipulated in Paragraph 19 of the Fair Value Measurement Accounting Standard and Paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019) into the future. The application of the Fair Value Measurement
Accounting Standard and others mentioned above does not have no impact on consolidated financial statements.

(Segment information)
Segment information is not shown because the Group’s operations are limited to the single segment of pharmaceutical products.

13

(Per share information)
FY 3/2021(From April 1, 2020
to March 31, 2021)
Shareholders’ equity per share
Basic earnings per share

FY 3/2022(From April 1, 2021
to March 31, 2022)

2,846.58yen
200.40yen

3,133.97yen
246.21yen(Notes) 1. Diluted earnings per share is not stated because there are no residual securities.
2. Basis of calculation(1) The basis of calculation for shareholders’ equity per share is as follows.
As of March 31, 2021

As of March 31, 2022

Total net assets (million yen)

233,169

258,109

Deduction from total net assets (million yen)

15,382

18,339〔Non-controlling interests〕〔15,382〕〔18,339〕

Net assets related to common stock at the end of the fiscal
year (million yen)

217,786

239,770

Number of shares of common stock at the end of the
fiscal year used for calculation of shareholders’ equity pershare (thousand shares)

76,50776,507(2) The basis of calculation for basic earnings per share per share is as follows.
FY 3/2021(From April 1, 2020
to March 31, 2021)
Profit attributable to owners of parent (million yen)

FY 3/2022(From April 1, 2021
to March 31, 2022)

15,332

18,836

Amount not attributable to common stockholders (million
yen)

－

－

Profit attributable to owners of parent related to common
stock (million yen)

15,332

18,836

Average number of shares of common stock during the
fiscal year under review (thousand shares)

76,50876,507(Significant subsequent events)
There are no applicable matters.

14