Summary of Consolidated Financial Statements for the Fiscal Year Ended March 2017
(Japan GAAP)May 11, 2017
Name of Listed
Company:

TSUMURA & CO.

Code:

4540

Representative:
Contact:

Position: President & Representative Director
Head of Corporate Communications DEPT.
Telephone: 81-3-6361-7100

Exchange:

Tokyo Stock Exchange

URL: http://www.tsumura.co.jp
Name: Terukazu Kato
Name: Noboru Suzuki

Scheduled date of general meeting of shareholders:June 29, 2017
Scheduled date of dividend payment commencement:
June 30, 2017
Scheduled date of security report submission:
June 29, 2017
Preparation of supplementary materials for the financial statements: Yes
Holding of the financial results briefing: Yes (for institutional investors, securities analysts and news media)(Figures are rounded down to the nearest one million yen.)

1. Consolidated business results for the term ended March 2017 (from April 1, 2016 to March 31, 2017)(Figures in percentages denote the year-on-year change.)(1) Financial results (total sum)
Net sales
Fiscal Year 3/2017
Fiscal Year 3/2016

Operating profit

Million yen%

Million yen

114,954
112,625

2.1
2.0

15,983
19,826(Note) Comprehensive income Fiscal Year 3/2017

Yen

Fiscal Year 3/2017
Fiscal Year 3/2016(Reference):% Million yen

-19.4
1.7

11,344 million yen (17.8%)

Fully diluted
net income
per share

Net income
per share

Ordinary income

179.46178.06Equity in earnings of affiliates:――

16,39919,494Yen

FY 3/2017:%

Million yen

%

-15.9
-9.7

12,48812,557-0.5-10.8

Fiscal Year 3/2016

Return on equity

Net income attributable toowners of parent

9,629 million yen (-55.0%)

Ratio of ordinary
income to total assets

Ratio of operating
profit to sales

%

%

%

8.1
8.3

7.4
8.9

13.9
17.6

31 million yen

FY 3/2016:

8 million yen(2) Consolidated financial conditions
Total assets

Shareholders’equity ratio

Net assets

Shareholders’ equity
per share

Million yen

Million yen%

Yen

As of March 31, 2017
As of March 31, 2016

222,008
222,468

157,397
155,70269.7
68.8

2,250.34
2,169.13(Reference):

FY 3/2017:

Shareholders’ equity:

154,783 million yen

FY 3/2016:

152,976 million yen(3) Consolidated cash flow
Cash flows fromoperating activities
Fiscal Year 3/2017
Fiscal Year 3/2016

Cash flows frominvesting activities

Cash flows fromfinancing activities

Closing balance of cash
and cash equivalents

Million yen

Million yen

Million yen

Million yen

21,065
17,570-6,451-7,461-9,572-4,60829,901
25,128

2. Dividends
Total cash
dividends(annual)Dividend per share
End of Q1

F Y 3/2016
F Y 3/2017
FY 3/2018(Projection)――

End of Q2

Yen

―

Yen

End of Q3

32.00
32.00

―
―

32.00

―

End of FY

Yen

Total

Dividends
Net assets
payoutdividend ratio(consolidated) (consolidated)

Yen

Yen

Million yen

%

%

32.00
32.00

64.00
64.00

4,513
4,420

35.9
35.7

3.0
2.9

32.00

64.00

34.7

3. Projections of consolidated business results for the term ending March 2018 (From April 1, 2017 to March 31, 2018)(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).)Net sales

Operating profit

Net income
attributable to ownersof parent

Ordinary income

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

Second quarter(aggregate)

58,600

4.0

8,200

4.2

8,400

14.0

6,100

14.9

88.69

Full-year

120,700

5.0

17,60010.1

18,10010.4

12,7001.7

184.64

Notes(1) Important changes of subsidiaries during the term
: Yes(change of specified subsidiaries that lead to a change in the scope of consolidation)* Although it does not fall under the change of specified subsidiary, from the current consolidated fiscal year, Yubari
Tsumura Co., Ltd., which was a non-consolidated subsidiary, increased its importance and is included in thescope of consolidation.
(2) Changes in accounting principles and procedures and the method for indication, etc.
1) Changes associated with the revision of accounting principles, etc.:
No2) Change other than 1):
No3) Accounting estimate changeNo4) Retrospective restatement
No(3) Number of shares issued (common stock)1) Number of shares issued at the end of the term(including treasury stock) (shares)
2) Number of treasury stock at the end of the term (shares)
3) Average number of shares during the term (shares)

FY 3/201770,771,662

FY 3/2016

70,771,662

FY 3/2017
FY 3/2017

1,989,282
69,592,851

FY 3/2016
FY 3/2016

247,631
70,524,330(Reference) Summary of Non-consolidated Results
1. Non-consolidated business results for the term ended March 2017 (from April 1, 2016 to March 31, 2017)(1) Financial results(Figures in percentages denote the year-on-year change)
Net sales
FY 3/2017
FY 3/2016

Operating profit

Ordinary income%

Million yen%

Million yen%

Million yen%

113,318
111,103

2.0
2.3

14,184
17,684-19.8-0.4

14,876
17,880-16.8-9.8

11,570
11,5430.2-10.8

Net income
per share

Fully diluted net income
per shareYen

FY 3/2017
FY 3/2016

Net income

Million yen

Yen

―
―

166.26163.68(2) Financial conditions
Total assets
FY 3/2017
FY 3/2016(Reference):

Shareholders’ equity
ratio

Net assets

Shareholders’ equity
per share

Million yen

Million yen%

Yen

208,970
209,584

147,995
145,28770.8
69.3

2,151.65
2,060.12

Shareholders’ equity:

FY3/2017:

147,995 million yen

FY3/2016:

145,287 million yen

2. Projections of non-consolidated business results for the term ending March 2018 (From April 1, 2017 to March 31, 2018)(Percentages show the rate of increase or decrease from the previous fiscal year for full-year and fromthe second quarter of the previous fiscal year for second quarter (aggregate).)Net sales

Ordinary income

Net income
per share

Net income

Million yen%

Million yen%

Million yen%

Yen

Second quarter(aggregate)

58,400

5.1

7,200

8.1

4,800

-0.8

69.79

Full-year

119,100

5.1

16,1008.2

11,6000.3

168.65* This Summary of Consolidated Financial Statements does not require the audit procedure.
* Explanation about the proper use of financial projections and other important notes
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 a possibility that actual results, etc. will differ
materially from forecasts due to various factors.

1. Consolidated Financial Statements(i) Consolidated Balance Sheets(Unit: million yen)
As ofMarch 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and stores
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
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
Total property, plant and equipment
Intangible assets
Investment and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Accounts payable
Income taxes payable
Provision for sales returns
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
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
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

As ofMarch 31, 201725,15041,8758,438
12,42831,482
1,271
13,026(4)
133,668

29,931
40,347
8,122
14,547
29,467
1,325
10,941(4)
134,679

56,22642,421
9,652
9,009
12,815239(67,542)
62,822
226

64,42947,920
10,139
9,052
3,880
308
(71,044)
64,686266

20,119
122
32
5,478
(2)
25,75088,799222,468

17,530
1,058
43
3,743
(0)
22,37687,329222,008

5,652
21,957
4,927
2,838
16
8,310
43,702

6,696
12,581
6,020
1,901
13
4,670
31,88315,000
1,202
1,339
66
5,454
23,063
66,76524,376
1,733
1,179
84
5,353
32,72764,611

19,4871,940
122,047(392)
143,084

19,4871,940
129,937(5,393)145,972

3,835
479
2,513
3,549
(485)
9,891
2,726
155,702
222,468

3,845
925
2,673
1,470
(102)
8,811
2,613
157,397
222,008

(ii) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Unit: million yen)
Fiscal year ended
March 31, 2016
(From April 1, 2015
to March 31, 2016)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on disaster
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net imcome
Net income attributable to non-controlling interests
Net income attributable to owners of parent

Fiscal year ended
March 31, 2017
(From April 1, 2016
to March 31, 2017)

112,625
45,05567,56947,743
19,826

114,954
49,45465,49949,516
15,983

97
363
8
396
866

64
385
31
481
962

182
975
41
1,198
19,494

144
381
20
546
16,399

0
0
0

3
873
876

0
31
563
－
595
18,898
5,949
123
6,072
12,825268
12,557

43
40
－
7
92
17,184
4,342
103
4,446
12,738249
12,488

Consolidated Statements of Comprehensive Income(Unit: million yen)

Net income
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
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

Fiscal year ended
March 31, 2016
(From April 1, 2015
to March 31, 2016)
12,825

Fiscal year ended
March 31, 2017
(From April 1, 2016
to March 31, 2017)
12,738

1,402(3,079)382(753)(1,119)9445
159(2,342)
383

(29)

(49)

(3,196)
9,629(1,393)
11,344

9,485
144

11,408(64)

(iii) Consolidated Statements of Changes in Equity
Previous consolidated accounting period (from April 1, 2015 to March 31, 2016)(Unit: million yen)
Shareholders' Equity

Balance at beginning of current period

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares

19,487

1,940

114,313

(389)

Total
shareholders'equity135,351

Changes of items during the period
Dividends of surplus
Net income attributable to owners ofparentChange of scope of consolidation(4,513)(4,513)

12,557

12,557-

Increase by merger
Reversal of revaluation reserve for land

(309)

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at end of current period

(309)
(2)

(2)

-

－

7,734

(2)

7,732

19,4871,940

122,047(392)

143,084

Accumulated Other Comprehensive Income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of current period

2,432

Foreign
Deferred
Revaluation
currency
gains orreservetranslation
losses on
for landadjustments
hedges
3,559

2,130

4,207

Total
Remeasure
NonTotal net
accumulated
ments ofcontrolling
asets
other
definedinterests
comprehensive
benefitincomeplans
633

12,964

2,631

150,947

Changes of items during the period
Dividends of surplus
Net income attributable to owners ofparentChange of scope of consolidation(4,513)
12,557-

Increase by merger
Reversal of revaluation reserve for land

(309)

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at end of current period

(2)
1,402

(3,079)

382

(658)

(1,119)(3,072)94(2,997)

1,402(3,079)

382

(658)

(1,119)(3,072)

94

4,754

3,835

479

2,513

3,549

(485)

9,891

2,726

155,702

Consolidated accounting period under review (from April 1, 2016 to March 31, 2017)(Unit: million yen)
Shareholders' Equity

Balance at beginning of current period

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares

19,4871,940

122,047

(392)

Total
shareholders'equity143,084

Changes of items during the period
Dividends of surplus
Net income attributable to owners ofparentChange of scope of consolidation
Increase by merger(4,476)(4,476)

12,48812,488

(150)

(150)

27

27
－

Reversal of revaluation reserve for land
Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at end of current period(5,001)(5,001)

-

－

7,889

(5,001)

2,888

19,4871,940

129,937(5,393)145,972

Accumulated Other Comprehensive Income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of current period

3,835

Foreign
Deferred
Revaluation
currency
gains orreservetranslation
losses on
for landadjustments
hedges
479

2,513

3,549

Total
Remeasure
NonTotal net
accumulated
ments ofcontrolling
asets
other
definedinterests
comprehensive
benefitincome
plans
(485)

9,891

2,726

155,702

Changes of items during the period
Dividends of surplus
Net income attributable to owners ofparentChange of scope of consolidation(4,476)
12,488(150)

Increase by merger

27

Reversal of revaluation reserve for land－

Purchase of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at end of current period(5,001)
9

445

159

(2,078)383(1,080)(113)(1,193)

9

445

159

(2,078)383(1,080)

(113)

1,694

3,845

925

2,673

1,470

(102)

8,811

2,613

157,397

(iv) Consolidated Statements of Cash Flows

Proceeds from sales and redemption of short-term andlong-term investment securities
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales and retirement of property,
plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Loss (gain) on sales of short-term andlong-term investment securities
Increase (decrease) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of short-term and long-term investment securities
Proceeds from sales and redemption of short-term andlong-term investment securities
Payments for investments in capital of subsidiaries andassociates
Payments of loans receivableCollection of loans receivable
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of period(Unit: million yen)
Fiscal year ended
March 31, 2017
(From April 1, 2016
to March 31, 2017)

Fiscal year ended
March 31, 2016
(From April 1, 2015
to March 31, 2016)
18,898
5,059
563
0
(461)
182

17,184
5,629
－
(2)
(449)
144

(8)

(31)

25

82

215
(2,440)390

1,465(1,123)
1,255

(0)

(873)

(510)
(100)
(693)
21,120486(182)(3,854)
17,570

(281)
(89)
3,272
26,182470(142)(5,444)21,065(7,675)
1,200
(60)
(10)

(8,211)
29
(88)
(18)

8

1,874

－

(238)

(934)
5
(34)
48
(10)
(7,461)

(3)
4
(34)
36
197
(6,451)(2)(4,515)(54)(36)(4,608)285
5,784
19,343(5,001)(4,478)(49)(43)(9,572)(588)
4,453
25,128

－

290

－

28

25,12829,901

(v) Notes regarding the Consolidated Financial Statements(Notes regarding the premise of a going concern)
There are no applicable matters.
(Segment information)
The Group only has one segment of pharmaceutical products and thus the statement ofsegment information is omitted.
(Information per share)
Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017

(From April 1, 2015

(From April 1, 2016

to March 31, 2016)

to March 31, 2017)

Net assets per share

2,169.13 yen

2,250.34 yen

Net income per share

178.06 yen

179.46 yen(Note) 1. Fully diluted net income per share is not stated because there are no residual securities.
2. Basis of calculation(1) The basis of calculation for net assets per share is as follows.

Total net assets (million yen)

As of

As of

March 31, 2016

March 31, 2017

155,702

157,397

Deduction from total net assets (million yen)

2,726

2,613

(Non-controlling interests)(2,726)(2,613)

152,976

154,783

70,52468,782

Net assets related to common stock at the endof the fiscal year (million yen)
Number of shares of common stock at the endof the fiscal year used for calculation of net
assets per share (thousand shares)

(2) The basis of calculation for net income per share is as follows.

Net income attributable to owners ofparent (million yen)Amount not attributable to common
stockholders (million yen)

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017

(From April 1, 2015

(From April 1, 2016

to March 31, 2016)

to March 31, 2017)12,557

12,488--12,557

12,48870,52469,592

Net income attributable to owners ofparent related to common stock (million
yen)
Average number of shares of common
stock during the fiscal year under review(thousand shares)

(Significant subsequent events)(Issuance of unsecured straight bonds)
At its meeting held on April 28, 2017, the Board of Directors of the Company passed acomprehensive resolution to issue domestic unsecured straight bonds as follows.
(1) Total amount of issue
Not more than 30 billion yen (However, multiple issues are possible within this total
amount.)(2) Scheduled issuance period
May 1, 2017 – March 31, 2018(3) Interest rate
The upper limit of the interest rate shall be that obtained by adding 1.50% to the yield of theJapanese government bonds with almost the same remaining period as the maturity date of
the unsecured straight bonds to be issued.
(4) Amount of each bond
100 million yen(5) Issue price
100 yen for each 100 yen of bond(6) Maturity dateNo later than 10 years(7) Redemption method
Lump-sum repayments at maturity(8) Security
Unsecured/non-guaranteed(9) Purpose of funds
To be used for capital investment, working capital, investments and loans and the repayment
of debts(10) Application of the Act on Book Entry of Corporate Bonds and Shares
All the straight bonds to be issued in accordance with the resolution will be subject to theprovisions of the Act on Book Entry of Corporate Bonds and Shares (Act No. 75 of 2001).
(11) Others
The decision on the specific timing of issuance, total amount of issue, interest rate and othermatters provided for in the items of Article 676 of the Companies Act and all other mattersrequired in connection with the said straight bond issuance shall be entrusted to the
President, Representative Director of the Company within the scope of the resolution.