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 11, 2021

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
(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, 2021
Scheduled date to commence dividend payments:
June 30, 2021
Scheduled date to file annual securities report:
June 29, 2021
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 financial results for the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31,
2021)(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, 2021

130,883

6.2

19,382

2.7

20,866

6.2

15,332

11.4

March 31, 2020

123,248

1.9

18,876

1.9

19,649(0.3)

13,765(5.7)

Note: Comprehensive income

For the fiscal year ended March 31, 2021:
For the fiscal year ended March 31, 2020:

Basic earnings
per share

Diluted earnings
per share¥17,381 million¥8,415 million

Return on equity[106.5 %][(35.7)%]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales%%

Fiscal year ended

Yen

March 31, 2021

200.40

－

7.2

6.6

14.8

March 31, 2020

179.96

－

6.8

6.6

15.3

Reference:Yen%equity in earnings of affiliates
For the fiscal year ended March 31, 2021:¥115 million
For the fiscal year ended March 31, 2020:¥96 million
Note: The Company has determined the provisional accounting treatment for business combinations in the fiscal year ended March 31,
2021, and figures for the fiscal year ended March 31, 2020 reflect the contents of the determined provisional accounting treatment.

(2) Consolidated financial position
Total assets
As of

Net assets

shareholder’s equity ratio

shareholders’ equity per
share

%

Yen

Millions of yen

Millions of yen

March 31, 2021

319,063

233,16968.3

2,846.58

March 31, 2020

311,990

213,99765.8

2,684.38

Reference:

EquityAs of March 31, 2021:¥217,786 million
As of March 31, 2020:¥205,377 million
Note: The Company has determined the provisional accounting treatment for business combinations in the fiscal year ended March 31,
2021, and figures for the fiscal year ended March 31, 2020 reflect the contents of the determined provisional accounting treatment.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Millions of yen

March 31, 2021
March 31, 2020

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

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

59,66818,191(23,488)

7,111

57,692

2. Dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
(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

35.6

2.4

－

32.00

－

32.00

64.00

4,896

31.9

2.3

－

32.00

－

32.00

64.00

34.5

3. Projections of consolidated financial results for the term ending March 31, 2022
(From April 1, 2021 to March 31, 2022)(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% Million yen% Million yen% Million yen%

Yen

First half

59,400

－

8,700

－

9,000

－

6,900

－

90.19

Full-year

122,500－

19,500－20,000－14,200－185.60（Note) Since the Company will apply the "Accounting Standard for Revenue Recognition" (ASBJ Statement
No. 29) together with the implementation guidance from the beginning of FY3/2022, the above projections ofconsolidated business results reflect application of said accounting standard and implementation guidance, andyear-on-year changes are not stated.
Year-on-year changes calculated on the assumption of application of said accounting standard andimplementation guidance in FY3/2021 are as follows.
First half: Net sales up by 4.3%; operating profit down by21.8%; ordinary profit down 19.0%; profit attributableto owners of parent down by 14.6%
Full year: Net sales up by 5.2%; operating profit up by 0.6%; ordinary profit down 4.2%; profit attributable toowners of parent down by 7.4%

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Note: TSUMURA SHENGSHI PHARMACEUTICALS CO., LTD. (trade name changed to TIANJINTSUMURA PHARMACEUTICALS CO.,LTD. from April 2021) was included in the scope of consolidation in
the fiscal year under review due because its importance had increased, although the company does not meet theconditions for transfer of specific subsidiaries.
(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: None(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, 2021

76,758,362 shares

As of March 31, 2020

76,758,362 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2021

250,402 shares

As of March 31, 2020

250,049 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2021

76,508,174 sharesFiscal year ended March 31, 2020

76,488,918 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, 2021 ·························································

2(2) Overview of financial position during the fiscal year ended March 31, 2021 ···················································

3(3) Overview of cash flow during the fiscal year ended March 31, 2021 ·····························································

4(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(Transfer of important subsidiaries during the fiscal year under review) ·······················································

13(Business combinations) ···············································································································

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

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

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

141

1. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year ended March 31, 2021
During the fiscal year under review, the Company's operating environment remained challenging, largely due to the restrictions
imposed on economic activities amid the COVID-19 pandemic.
Under such conditions, the consolidated net sales for the fiscal year under review increased 6.2% year on year, to 130,883 million yen.
Looking at profit, operating profit was 19,382 million yen (up 2.7% year on year), ordinary profit was 20,866 million yen (up 6.2%
year on year), and profit attributable to owners of parent was 15,332 million yen (up 11.4% year on year).
The cost-to-sales ratio rose 1.5 percentage points year on year, even though the cost increase arising from the NHI drug price revision
was absorbed by reduced costs related to crude drugs. The ratio rose mainly because, unlike Kampo products and crude drug pieces fordecoction, raw materials for crude drugs, which are currently the mainstay products of Ping An Tsumura Pharmaceutical Co., Ltd.
(formerly Tianjin China Medico Technology Co., Ltd.), have a high cost-to-sales ratio. In addition, the SGA ratio fell 1.1 percentage
points year on year, partly due to a decrease in expenses associated with changes in activities. As a result, the operating profit margin
was 14.8%, falling 0.5 percentage point from a year ago.
[Consolidated business results]
Fiscal year ended March 31,
2020

Fiscal year ended March 31,
2021(Million yen)
YoY Change
Percent Change

123,248

130,883

7,635
6.2%

Domestic sales―

124,516―

Overseas sales

―

6,367

―

Operating profit

18,876

19,382505
2.7 %Ordinary profit

19,64920,866

1,216
6.2 %

Profit attributable toowners of parent

13,765

15,332

1,567
11.4%

Net sales（Note) Overseas sales for the fiscal year ended March 31, 2020 were insignificant and have, therefore, been omitted. A breakdownof net sales into domestic sales and overseas sales is provided because the net sales of Ping An Tsumura Pharmaceutical were recorded
from the fiscal year under review.
Domestic sales reached 124,516 million yen. Sales for 129 prescription Kampo products, included in this total rose, 1.1% year on year,
despite the effects of COVID-19, such as hesitancy to consult physicians. A breakdown of sales reveals that prescriptions for products
to treat common cold symptoms dropped sharply, reflecting decline in upper respiratory inflammation and other infections thanks tostrict enforcement of infection control measures, but that prescriptions for products to treat other conditions such as mental illness andskin conditions grew due to changing living environments. Among “Drug fostering” *1 program formulations, which are theCompany's mainstay items, sales of Daikenchuto grew 0.4% year on year. In “Growing” formulations*2, Hochuekkito, Kamishoyosan
and Goreisan performed strongly.
Looking at sales activities, the Company stepped up e-promotions in addition to conventional visit-based information provision
activities, and conducted information provision activities according to the needs of healthcare professionals.
Overseas sales amounted to 6,367 million yen, significantly bolstered by the net sales of Ping An Tsumura Pharmaceutical Co., Ltd.
which are recognized from the fiscal year under review. Moving forward, the Company will strengthen the functions of the crude drug
platforms provided by Ping An Tsumura Pharmaceutical Co., Ltd. and SHENZHEN TSUMURA MEDICINE CO., LTD to further
expand business, focusing on sales of crude drugs and crude drug pieces for decoction.
Net sales from overseas business amounted to 6,367 million yen, thanks largely to the net sales of Ping An Tsumura PharmaceuticalCo., Ltd. (formerly Tianjin China Medico Technology Co., Ltd.), which was included in the scope of consolidation from the fiscal year
under review. Moving forward, the Company will strengthen the functions of the crude drug platforms provided by Ping An Tsumura
Pharmaceutical Co., Ltd. and SHENZHEN TSUMURA MEDICINE CO., LTD to further expand business, focusing on sales of crude
drugs and crude drug pieces for decoction.
For achievement of of its Long-term Management Vision 2021, the Company will continue to focus on the five strategic agendas
under its medium-term management plan: "Sustainable expansion of Kampo market and establishment of its presence," "Investment ingrowth and construction of business foundation in China," "Improvement of productivity using new technologies: AI, robotization and
RPA*1," "Fostering of corporate culture and development of diverse human resources*2 based on visionary management," and"Promotion of SDGs through Kampo value chain."2

*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[Initiatives in response to COVID-19 pandemic and impact on performance]
In response to the COVID-19 pandemic, the Company ensured prevention of transmission to employees and business associates
throughout the year and focused on the stable supply of products to fulfil its responsibility as a pharmaceuticals company. There was
no impact on product supply either in Japan or overseas.
Looking at the impact of COVID-19 on performance during the fiscal year under review, certain business activities were affected, withthe restriction of visit-based information activities and research and development delays in the U.S., and in the Summary ofConsolidated Financial Statements for the Third Quarter, the Company lowered its net sales forecast whilst raising its profit forecast toreflect lower expenses associated with changes in activities.
Whilst the business environment remains uncertain, the Company will continue to monitor the changing situation and focus on
infection control measures and the stable supply of products.
(2) Overview of financial position during the fiscal year ended March 31, 2021
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 7,073 million yen from the end of the previous fiscal year, to 319,063
million yen. Current assets increased 7,300 million yen from the end of the previous fiscal year, mainly due to a rise in inventories,
despite a decrease in cash and deposits.
Non-current assets decreased 227 million yen from the end of the previous fiscal year, mainly due to a decrease in other in investments
and other assets associated with the consolidation of Tsumura Shengshi Pharmaceuticals Co., Ltd. from the fiscal year under review,
offsetting an increase in machinery, equipment and vehicles.
Total liabilities were 85,894 million yen, a decrease of 12,098 million yen from the end of the previous fiscal year. Current liabilities
decreased 95 million yen from the end of the previous fiscal year, mainly due to a decline in short-term borrowings, which offset anincrease in long-term borrowings scheduled for repayment within one year that resulted from their transfer. Non-current liabilities
declined 12,003 million yen from the end of the previous fiscal year mainly due to the transfer of long-term borrowings to current
liabilities.
Net assets totaled 233,169 million yen, an increase of 19,171 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 10,124 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 2,283 million yen from the end of the previous fiscal year, chiefly due to an increase in deferred gains
on hedges. Non-controlling interests increased 6,763 million yen from the end of the previous fiscal year.
As a result, the equity ratio rose 2.5 percentage points, to 68.3%.
With respect to the business combination with Tianjin China Medico Technology Co., Ltd. (trade name changed to Ping An Tsumura
Pharmaceutical Co., Ltd. from August 2020) and its five subsidiaries, which took place on March 30, 2020, the Company applied
provisional accounting treatment in the previous fiscal year. However, since the Company finalized the provisional accounting
treatment in the fiscal year under review, the amounts used for comparison and analysis with the previous fiscal year reflect
finalization of the provisional accounting treatment.

3(3) Overview of cash flow during the fiscal year ended March 31, 2021
Cash flows in the fiscal year under review were as follows:
At the end of the fiscal year under review, cash provided by operating activities was 16,102 million yen, cash used in investing
activities was 7,352 million yen and cash used in financing activities was 10,425 million yen.
Cash provided by operating activities was 16,102 million yen. Looking at its breakdown, a major cash inflow item was profit before
income taxes of 20,456 million yen, while a major cash outflow item was income taxes paid of 5,775 million yen. Compared to theprevious fiscal year, cash inflow decreased 2,088 million yen.
Cash used in investing activities was 7,352 million yen. Looking at its breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 8,949 million yen. Compared to the previous fiscal year, cash outflow decreased 16,136 million yen.
Cash used in financing activities was 10,425 million yen. Looking at its breakdown, repayments of short-term borrowings of 14,086
million yen was a major cash outflow item. Compared to the previous fiscal year, cash outflow increased 17,537 million yen.
As a result, cash and cash equivalents decreased 1,543 million yen from the end of the previous fiscal year, and when combined with
the increase in cash and cash equivalents of 3,519 million yen associated with the consolidation of a subsidiary, reached 59,668 million
yen.

(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, 2022 is 122,500 million yen. Net sales from overseas business are expected to account for 8,800 million yen of thistotal. Profit forecasts are operating profit of 19,500 million yen[ up0.6%], ordinary profit of 20,000 million yen[ down4.2%], andprofit attributable to owners of parent of 14,200 million yen[ down7.4%].
In Japan, the Company will conduct more extensive information activities by expanding e-promotions, which it began developing last
fiscal year, in addition to visit-based information activities. In overseas business, the Company will lay the foundations for expansionof the traditional Chinese medicinal product business alongside expansion of sales 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 thesituation changes, the Company will disclose information in a timely and appropriate 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, 2022〔Year-on-year change
after adjustment〕

Operating profit

122,500
5.2%

19,5000.6%

Ordinary profit(Million yen)
Profit attributable toowners of parent

20,000(4.2)%

14,200(7.4)%* Year on-year change after adjustment is based on a comparison of the figures for the fiscal under review (FY3/2021), adjusted toreflect application of "Accounting Standard for Revenue Recognition" and its implementation guidance, with the forecasts for
FY3/2022.

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, 2020
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

As of March 31, 2021

61,957
47,161
10,924
12,41852,463
12,071(22)

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

196,973204,273

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

68,672
52,085
11,266
9,051
18,748458

74,533
61,483
12,294
9,051
13,923499

Accumulated depreciation(83,076)(87,609)

77,207

84,176

8,222
3,381

7,881
3,561

Total intangible assets

11,604

11,443

Investment and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other

10,7501,213
755
13,485

11,445
2,252
500
4,972

Allowance for doubtful accounts

(0)

(0)

Total investment and other assets

26,204

19,170Total current assets

Total property, plant and equipment
Intangible assets
Goodwill
Other

Total non-current assets
Total assets

5115,017

114,789

311,990319,063(Million yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings

As of March 31, 2021

10,12822,874

8,593
10,472－

12,380Accounts payable - other
Income taxes payable
Provision for sales returns
Other

5,874
3,607
10
5,982

5,607
4,057
12
7,256

Total current liabilities

48,476

48,38030,00030,000Non-current liabilities
Bonds payable
Long-term borrowings

12,394－

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

0
1,179
72
5,869

231
1,179
61
6,041

Total non-current liabilities

49,51637,513

Total liabilities

97,99385,894

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings

30,142
14,041
158,61030,142
13,789168,989

(678)

(679)

202,116

212,241

2,767
87
2,673

3,180
1,233
2,673

Foreign currency translation adjustment(1,318)(1,130)Remeasurements of defined benefit plans

(949)

(412)

Total accumulated other comprehensive income

3,260

5,544

8,619

15,382

213,997

233,169

311,990319,063

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

Non-controlling interests
Total net assets
Total liabilities and net assets

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Million yen)
FY 3/2020(From April 1, 2019
to March 31, 2020)

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

Net sales
Cost of sales

123,248
50,747130,883
55,951Gross profit

72,50074,931

Selling, general and administrative expenses

53,62355,548Operating profit

18,876

19,382

573
253

474
250

96

115

Foreign exchange gains－

366

Subsidy income
Other

97
303

285
309

1,325

1,801

142

286

Foreign exchange losses

254

－

Other

155

31

Total non-operating expenses

552

318

19,64920,866

5
339

0
4

344

5

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets

1
50

0
413

Loss on sales of investment securities

19－

Loss on valuation of investment securities

267－

Loss on valuation of investments in capital of subsidiaries
and associates

431－

Total extraordinary losses

770

414

Profit before income taxes

19,223

20,456

Income taxes - current

5,611

6,235

Income taxes - deferred

(344)

(519)

Total income taxes

5,266

5,715

Profit13,956

14,741

191(591)

13,765

15,332Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodTotal non-operating income
Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

7

Consolidated Statements of Comprehensive Income(Million yen)
FY 3/2020(From April 1, 2019
to March 31, 2020)
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
Share of other comprehensive income (loss) of entities
accounted for using equity method
Total other comprehensive income (loss)

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

13,956

14,741(2,930)(652)(1,078)
(872)

412
1,146
541
536

(7)

2

(5,541)

2,640

Comprehensive income

8,415

17,381

Comprehensive income attributable to
Owners of parent

8,304

17,616

110(235)

Non-controlling interests8(3) Consolidated Statements of Changes in Equity
FY 3/2020 (From April 1, 2019 to March 31, 2020)(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCapital surplus

30,142Retained earnings

14,027

149,740

Total shareholders’equityTreasury shares(815)

193,095

Changes of items during the period
Dividends of surplus(4,894)(4,894)

Net income attributable to ownersof parent

13,765

13,765Purchase of treasury shares

13

Disposal of treasury shares

(0)

(0)

138

152

Increase of consolidated
subsidiaries - non-controllinginterests－

Net changes of items other thanshareholders’ equity
Total changes of items during theperiod

－

13

8,870

137

9,021

Balance at end of current period

30,142

14,041

158,610(678)

202,116

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

Total net
assets

5,697

740

2,673

(313)

(76)

8,721

4,324

206,141

Changes of items during the period
Dividends of surplus(4,894)

Net income attributable to ownersof parent

13,765Purchase of treasury shares(0)

Disposal of treasury shares

152

Increase of consolidated
subsidiaries - non-controllinginterests

3,504

3,504

Net changes of items other thanshareholders’ equity(2,930)(652)－(1,004)(872)(5,460)790(4,670)Total changes of items during theperiod(2,930)(652)－(1,004)(872)(5,460)

4,294

7,855

Balance at end of current period

2,767

87

2,673

(1,318)

(949)

3,260

8,619

213,9979

FY 3/2021 (From April 1, 2020 to March 31, 2021)(Million yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCapital surplus

30,142Retained earnings

14,041

158,610

Total shareholders’equityTreasury shares(678)

202,116

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

Net income attributable to ownersof parent

15,332

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 of consolidated
subsidiaries - non-controllinginterests－

Net changes of items other thanshareholders’ equity
Total changes of items during theperiod－(252)

10,378(1)

10,124

Balance at end of current period

30,142

13,789168,989(679)

212,241

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference 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 of items during the period
Dividends of surplus(4,896)

Net income attributable to ownersof parent

15,332

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 of consolidated
subsidiaries - non-controllinginterests

7,567

7,567

Net changes of items other thanshareholders’ equity

412

1,146

－

187

536

2,283

(803)

1,479

Total changes of items during theperiod

412

1,146

－

187

536

2,283

6,763

19,171

Balance at end of current period

3,180

1,233

2,673

(1,130)

(412)

5,544

15,382

233,16910

(4) Consolidated Statements of Cash Flows(Million yen)
FY 3/2020(From April 1, 2019
to March 31, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

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

19,223
6,406

20,456
8,210

－

405

0

31

(827)

(724)

142

286

(96)

(115)

47

413

431

－

(866)

(1,408)(3,930)(4,515)134(1,612)

(319)

(4)

267

－

Decrease (increase) in retirement benefit asset

(552)

(281)

Increase (decrease) in retirement benefit liability
Other

13
1,233

5
127

Subtotal

21,307

21,275Interest and dividend income received

1,164

878

Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sales and retirement of property, plant andequipment
Loss on valuation of investments in capital of subsidiaries
and associates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Loss (gain) on sales of short-term and long-term investment
securities
Loss (gain) on valuation of short-term and long-term
investment securities

Interest paid

(141)

(275)

Income taxes paid

(4,138)(5,775)

Net cash provided by (used in) operating activities

18,191

16,102

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

11,5582,631(10,007)(8,949)

6

1

(545)

(467)

Purchase of short-term and long-term investment securities(39,826)(24,453)

Proceeds from sales and redemption of short-term and longterm investment securities

40,56024,465Purchase of investments in capital of subsidiaries(4,226)(451)

Purchase of investments in capital of subsidiaries resulting
in change in scope of consolidation(17,891)－

Loan advances(3,001)

(156)

3

2

Purchase of intangible assets

Collection of loans receivable
Other
Net cash provided by (used in) investing activities

11

(117)

26

(23,488)(7,352)

(Million yen)
FY 3/2020(From April 1, 2019
to March 31, 2020)

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

Cash flows from financing activities
Proceeds from short-term borrowings

11,304

1,857

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

Proceeds from share issuance to non-controllingshareholders

816

7,567

(4,897)(4,896)

(56)

(49)

－

(760)

Dividends paid
Dividends paid to non-controlling interests
Purchase of investments in capital of subsidiaries that do
not result in change in scope of consolidation
Other

(54)

(56)

Net cash provided by (used in) financing activities

7,111(10,425)

Effect of exchange rate change on cash and cash equivalents

(366)

131

Net increase (decrease) in cash and cash equivalents

1,448(1,543)

Cash and cash equivalents at beginning of period

56,24357,692－

3,519

57,69259,668

Increase in cash and cash equivalents resulting from inclusionof subsidiaries in consolidation
Cash and cash equivalents at end of period12(5) Notes to the Consolidated Financial Statements(Notes on premise of a going concern)
There are no applicable matters.
(Transfer of important subsidiaries during the fiscal year under review)No relevant items.
TSUMURA SHENGSHI PHARMACEUTICALS CO., LTD. was included in the scope of consolidation in the fiscal year underreview due because its importance had increased, although the company does not meet the conditions for transfer of specificsubsidiaries.
(Business combinations）
Finalization of provisional accounting treatment for business combination
With respect to the business combination with Tianjin China Medico Technology Co., Ltd. (trade name changed to Ping An Tsumura
Pharmaceutical Co., Ltd. from August 2020) and its five subsidiaries, which took place in on March 30, 2020, the Company applied
provisional accounting treatment in the previous fiscal year but finalized the provisional accounting treatment in the fiscal year underreview.
Accordingly, material revisions in the initially allocated amounts of acquisition costs have been reflected in the consolidated financial
statements for the previous fiscal year, and as a result of the allocation of 586 million yen to finished goods, 1,910 million yen to raw
materials and supplies, 188 million yen to current assets-other, 423 million yen to intangible assets - other (customer-related assets),
1,632 million yen to intangible assets- other (technological assets) and 948 million yen to non-controlling interests, the provisionallycalculated amount of goodwill of 12,016 million yen decreased by 3,793 million yen, to 8,222 million yen.
(Segment information)
The Group only has one segment of pharmaceutical products and thus the statement of segment information is omitted.

13

(Per share information)
FY 3/2020(From April 1, 2019
to March 31, 2020)
Shareholders’ equity per share
Basic earnings per share

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

2,684.38 yen
179.96 yen

2,846.58 yen
200.40 yen(Notes) 1. Diluted earnings per share is not stated because there are no residual securities.
2. Net assets per share for the previous fiscal year reflects material revision of initially allocated amounts of acquisition costs
due to the finalization of provisional accounting treatment for a business combination.
3. Basis of calculation(1) The basis of calculation for shareholders’ equity per share is as follows.
As of March 31, 2020
Total net assets (million yen)

As of March 31, 2021

213,997

Deduction from total net assets (million yen)

233,169

8,619

15,382〔8,619〕〔15,382〕

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

205,377

217,786

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

76,50876,507〔Non-controlling interests〕(2) The basis of calculation for basic earnings per share per share is as follows.
FY 3/2020(From April 1, 2019
to March 31, 2020)
Profit attributable to owners of parent (million yen)

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

13,765

15,332

Amount not attributable to common stockholders (million
yen)

－

－

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

13,765

15,332Average number of shares of common stock during the
fiscal year under review (thousand shares)

76,48876,508(Significant subsequent events)
There are no applicable matters.

14