Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

August 5, 2024

Consolidated Financial Results
for the First Quarter of the Term Ending March 31, 2025
(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:
Makoto Kitamura, Head of Corporate Communications Dept.
Telephone:+81-3-6361-7100
Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results: Yes
Holding of financial results briefing: Yes (for institutional investors and securities analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated business results for the first quarter of the term ending March 31, 2025 (from April 1, 2024
to June 30, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Three-month period
endedOperating profit

Millions of yen%

Millions of yen

June 30, 2024

43,69018.0

10,575June 30, 2023

37,0367.6

4,684 （26.3）

Note: Comprehensive income

%

125.7

Three-month period ended June 30, 2024:
Three-month period ended June 30, 2023:

Basic earnings
per share
Three-month period
endedProfit attributable toowners of parent

Ordinary profit
Millions of yen%

Millions of yen%

14,118135.7

11,180

158.1

5,989

(30.9)

4,332(34.7)¥ 16,122 million¥ 8,482 million[90.1 %][(36.9) %]Diluted earnings
per share
Yen

Yen

June 30, 2024

147.25－June 30, 2023

56.88

－

(2) Consolidated financial condition
Total assets
As of

Net assets

Millions of yen

Equity-to-asset ratio

Millions of yen%

June 30, 2024

445,163

307,552

63.3

March 31, 2024

428,254295,364

63.2

Reference:

EquityAs of June 30, 2024:
As of March 31, 2024:¥281,874 million¥270,802 million

2. Dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025－

Fiscal year-end

Total

Yen

Yen

35.00

－

50.00

85.00

68.00

－

68.00

136.00－Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to dividends projection published most recently: None
3. Projections of consolidated business results for the term ending March 31, 2025
(From April 1, 2024 to March 31, 2025)(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

89,700185,000

%

19.1
22.6

Million yen

19,30039,500% Million yen

89.0
97.3

19,30039,500

%

52.3
68.1

Million yen

14,20028,500

%

57.7
70.6

Note: Revisions to projections of consolidated business results published most recently: None

Yen

187.02375.35

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) 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
Note: For details, see “2. Quarterly Consolidated Financial Statements and Key Notes (4) Notes to the Quarterly
Consolidated Financial Statements (Changes in Accounting Policies)” on page 10 of the material attachedhereto.
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

76,758,362 shares

As of March 31, 2024

76,758,362 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

829,971 shares

As of March 31, 2024

829,871 shares(iii) Average number of shares outstanding during the period
Three-month period ended June 30, 2024

75,928,416 shares

Three-month period ended June 30, 2023

76,171,530 shares

Note: The Company has introduced the BIP（Board Incentive Plan) trust for directors' compensation and ESOP
（Employee Stock Ownership Plan）trust. As a result, the shares of the Company’s stock held by the trust areincluded in treasury shares that are deducted in calculating the number of treasury shares at the end of the period andthe average number of shares outstanding.
* 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.
Qualitative information on quarterly results (3) Description of projections of consolidated business results” onpage 4 for information regarding the forecast of consolidated financial results.

○Contents of accompanying materials
1. Qualitative information on quarterly results ·····························································································

2(1) Description of operating results ········································································································

2(2) Description of financial condition ·····································································································

4(3) Description of projections of consolidated business results ········································································

4

2. Quarterly Consolidated Financial Statements and Key Notes ··········································································

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

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

7

Quarterly Consolidated Statements of Income
For the First Quarter Consolidated Accumulative Term···········································································

7

Quarterly Consolidated Statements of Comprehensive Income
For the First Quarter Consolidated Accumulative Term···········································································

8(3) Quarterly Consolidated Statements of Cash Flows ·················································································

9(4) Notes to the Consolidated Financial Statements ····················································································

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

10(Notes on case of extreme change in shareholder's equity amount) ····························································

10(Changes in Accounting Policies) ···································································································

10(Notes on Segment Information) ·····································································································

101

1. Qualitative information on quarterly results(1) Description of operating results
Consolidated business results for the first quarter under review were as follows:[Consolidated business results](Million yen)
FY 3/2024 1Q

YoY Change
Percent Change

FY 3/2025 1Q

37,036

43,690＋6,654＋18.0％

Domestic business

32,98840,134＋7,145＋21.7％

China business

4,047

3,556

（491）
（12.1）％

Cost of sales

20,341

20,858＋516＋2.5％

Selling, general and administrative
expenses

12,00912,257＋248＋2.1％

Operating profit

4,684

10,575＋5,890＋125.7％

4,684

10,713＋6,028＋128.7％

0

（138）

（138）
－

Ordinary profit

5,989

14,118＋8,128＋135.7％

Profit attributable to owners ofparent4,332

11,180＋6,847＋158.1％

Net sales

Domestic business
China businessNet sales increased 18.0% year on year, to 43,690 million yen.
Net sales of the domestic business increased 21.7% year on year, to 40,134 million yen. Sales of 129 prescription Kampo preparations
increased 21.9% year on year, to 38,820 million yen. Sales of Daikenchuto, Yokukansan and Goshajinkigan increased markedly, partly
owing to the effect of the application of price revision for unprofitable products. Sales of Goreisan increased, attributable to the liftingof restrictions on shipments and activities to provide information according to needs related to headaches and dizziness. On the other
hand, sales of Rikkunshito, Hangeshashinto, Hochuekkito, Kamishoyosan, Kamikihito and Ninjin’yoeito decreased compared to ayear ago, given the absence of the surge in demand that occurred in March in association with price revisions.

2Sales of“Drug fostering” program formulations and“Growing” formulations (unit: millions of yen)
Ranking

No. / Product Namein salesFY 3/2024

FY 3/2025

YoY Change/

1Q

1Q

Percent Change

1100

Daikenchuto

*3

2,515

3,877

＋1,362＋54.2％“Drug fostering” program
formulations

2

54

Yokukansan

*3

1,940

3,040

＋1,100＋56.7％

5

43

Rikkunshito

1,861

1,757

（104）

（5.6）％*1

7

107

Goshajinkigan

995

1,467

＋472

＋47.5％

25

14

Hangeshashinto

370

358

（12）

（3.3）％

7,683

10,502＋2,819＋36.7％*3

Total of "Drug Fostering" Program formulations

Growing formulations
*2

3

17

Goreisan

1,801

2,090

＋288

＋16.0％

4

41

Hochuekkito

1,931

1,800

（131）

（6.8）％

924

Kamishoyosan

1,305

1,199

（105）

（8.1）％

19

137

Kamikihito

590

539

（51）

（8.7）％

20

108

Ninjin`yoeito

561

527

（33）

（6.0）％

6,191

6,157

（33）

（0.5）％

17,964

22,161＋4,197＋23.4％

31,83838,820＋6,982＋21.9％

Total of Growing formulations
Total of 119 prescriptions excluding “Drug fostering” program
formulations and Growing formulations
Total of 129 prescription Kampo products*3

In addition, sales of OTC Kampo formulations in the domestic business increased 17.8% year on year, to 985 million yen, reflecting arise in the number of stores handling the products.
Net sales of the China business declined 12.1% year on year, to 3,556 million yen. This was because certain suppliers temporarily heldoff purchases, causing a fall in sales of crude drugs, the mainstay of the China business, in the crude drug platforms (Ping An Tsumura
Pharma Inc., Shenzhen Tsumura Medicine Co., Ltd. and others) that mainly sell crude drugs and crude drug pieces for decoction.
The cost of sales increased 2.5% year on year, to 20,858 million yen, due mainly to growth in sales and a rise in the cost of procuring
crude drugs. The cost-to-sales ratio dropped 7.2 percentage points, to 47.7%, owing to the application of price revision for unprofitableproducts, despite the rise in the cost of procuring crude drugs, etc.
Selling, general and administrative expenses increased 2.1% year on year, to 12,257 million yen. The increase was mainly due to anincrease in depreciation costs associated with the operation of the integrated trunk system and the impact of the depreciation of the yen.
The SGA ratio fell 4.3 percentage points year on year, to 28.1%, attributable to the increase in net sales.
As a result of the above, operating profit increased 125.7% year on year, to 10,575 million yen, while the operating profit margin rose
11.6 percentage points, to 24.2%. Ordinary profit increased 135.7%, to 14,118 million yen, partly attributable to the recording of foreignexchange gains on loans to overseas subsidiaries. Profit attributable to owners of parent increased 158.1% year on year, to 11,180 million
yen, owing to the posting of extraordinary income associated with sales of shares in cross-shareholding, in addition to the foregoing.
*1 “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 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*3 The number of Kampo preparations to which price revisions for unprofitable products were applied: 66 (3 prescriptions fallingunder drug fostering and evolution of Kampo + 63 other prescriptions, Revision rate: +36.2% - +50.7%)

3[Situation of limited shipments]
Shipments of 129 prescription Kampo products had been restricted in part because demand for prescription Kampo preparations was
greater than expected, reflecting increases in the number of COVID-19 and influenza cases and instability in the supply of
antitussives. Restrictions on shipments were gradually lifted by boosting production and adjusting production plans. As a result, thenumber of products under restricted shipment will be one as of August 5, 2024. The Company will work to lift restrictions on
shipments as soon as possible.
(2) Description of financial condition
The financial position at the end of the first quarter under review was as follows:
Total assets at the end of the first quarter increased 16,909 million yen from the end of the previous fiscal year to 445,163 million yen.
Current assets increased 16,102 million yen from the end of the previous fiscal year, mainly due to a rise in notes and accounts
receivable trade. Non-current assets increased 807 million yen from the end of the previous fiscal year, mainly due to an increase inproperty, plant and equipment.
Total liabilities were 137,611 million yen, an increase of 4,721 million yen from the end of the previous fiscal year. Current liabilities
increased 5,161 million yen from the end of the previous fiscal year. Non-current liabilities decreased 439 million yen from the end of
the previous fiscal year.
Net assets totaled 307,552 million yen, an increase of 12,188 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 7,353 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 3,718 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign
currency translation adjustment. Non-controlling interests increased 1,115 million yen from the end of the previous fiscal year.
As a result, the equity ratio rose 0.1 percentage points, to 63.3%.
Cash flows in the first quarter under review were as follows:
Cash and cash equivalents as of the end of the first quarter under review was 72,530 million yen, a decrease of 5,503 million yen fromthe end of the previous fiscal year. Cash flows in the first quarter under review and year-on-year changes in cash flows were as
follows.
Cash used in operating activities was 1,377 million yen. Looking at a breakdown, a major cash inflow item was profit before income
taxes of 15,820 million yen, while major cash outflow items were an increase in trade receivables of 8,665 million yen and an increase
in inventories of 5,979 million yen. Compared to a year ago, cash outflow rose 1,225 million yen.
Cash used in investing activities was 567 million yen. Looking at a breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 2,834 million yen, while cash inflow included proceeds from the sale and redemption of short-termand long-term investment securities of 3,441 million yen. Compared to a year ago, cash outflow dropped 4,339 million yen.
Cash used in financing activities was 3,782 million yen. Looking at its breakdown, a major cash outflow item was dividends paid of
3,754 million yen. Compared to a year ago, cash outflow rose 2,203 million yen.
(3) Description of projections of consolidated business results
The projections of consolidated business results for the fiscal year ending March 31, 2025, which were published on May 9, 2024,
remain unchanged.

4

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits

78,07572,607

Notes and accounts receivable - trade
Merchandise and finished goods

67,14912,13976,452
13,522Work in process
Raw materials and supplies

18,30987,16819,94493,444

Other
Allowance for doubtful accounts

18,761(311)

21,774(351)

Total current assets

281,292

297,395

Buildings and structures
Other

95,434
121,118

98,211
122,948

Accumulated depreciation(112,493)(115,515)

Total property, plant and equipment

104,058

105,644

Non-current assets
Property, plant and equipment

Intangible assets
Goodwill

8,350

8,591

Other

8,902

8,879

Total intangible assets

17,253

17,470Investment securities
Retirement benefit asset

15,241
3,626

13,466
3,745

Other
Allowance for doubtful accounts

6,781
(0)

7,441
(0)

Total investments and other assets

25,65024,653

146,961

147,768

428,254445,163

Notes and accounts payable - trade
Short-term borrowings

19,828
10,313

21,98925,313Current portion of bonds payable
Income taxes payable

15,000
2,979

5,178

Other

20,435

21,238

Total current liabilities

68,55773,71845,0009,377

45,000
9,377

49
414

48
523

220

248

Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Allowance for employee share benefits
Provision for share awards for directors (and otherofficers)
Other

9,270

8,695

Total non-current liabilities

64,332

63,892

132,889

137,611

Total liabilities

5

(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Net assets
Shareholders' equity
Share capital

30,14230,142

Capital surplus
Retained earnings

13,739205,804

13,739213,158

Treasury shares(2,378)(2,379)Total shareholders' equity

247,307

254,660

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

5,910

5,292

1,328

2,844

Revaluation reserve for land
Foreign currency translation adjustment

2,673
13,8702,673
16,680Remeasurements of defined benefit plans

(287)

(277)

23,494

27,213

Non-controlling interests

Total accumulated other comprehensive income

24,562

25,678

Total net assets

295,364

307,552

428,254445,163

Total liabilities and net assets

6

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income / For the First Quarter Consolidated Accumulative Term
(Millions of yen)
For the three months
ended June 30, 2023

For the three months
ended June 30, 2024

Net sales

37,036

43,690

Cost of sales

20,341

20,858Gross profit

16,694

22,832

Selling, general and administrative expenses

12,00912,257

Operating profit

4,684

10,575

247

158

Dividend income
Foreign exchange gains

141
929

167
3,228

Other

85

120

1,404

3,675

96

112

2

19

Non-operating income
Interest income

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

99

132

5,989

14,11800Gain on sale of investment securities

-

1,729

Total extraordinary income

0

1,729

Loss on retirement of non-current assets

827

Total extraordinary losses

827Profit before income taxes

5,980

15,820

Income taxes

1,637

4,424

Profit4,343

11,396

10

215

4,332

11,180Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

7

Quarterly Consolidated Statements of Comprehensive Income / For the First Quarter Consolidated Accumulative Term
(Millions of yen)
For the three months
ended June 30, 2023
ProfitOther comprehensive income

For the three months
ended June 30, 2024
4,343

11,396

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,527
580

(617)
1,516

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

2,021
8

3,817
9

Total other comprehensive income

4,139

4,726

Comprehensive income

8,482

16,122Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

8,026

14,898

455

1,223

8

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
For the three months
ended June 30, 2023
Cash flows from operating activities
Profit before income taxes

For the three months
ended June 30, 2024
5,980

15,820Depreciation
Amortization of goodwill

2,454
126

2,671
135

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

12
(389)

26
(325)

Interest expenses
Loss (gain) on sale and retirement of property, plantand equipment
Decrease (increase) in trade receivables

96

112

8

27

(3,270)(8,665)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(4,476)(144)(5,979)1,395-(1,729)

(98)

(105)

Increase (decrease) in retirement benefit liability
Other, net

(5)
2,069

0
(2,322)

Subtotal

2,364

1,060

411
(25)

323
(71)

(2,901)(2,689)(152)(1,377)

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits

(6)

(6)

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(3,623)0(2,834)0Purchase of intangible assets
Purchase of short-term and long-term investment
securities
Proceeds from sale and redemption of short-term andlong-term investment securities
Proceeds from collection of loans receivable
Other, net(1,018)

(217)

(1)

(825)

-

3,441

0
(257)

0
(125)

Net cash provided by (used in) investing activities(4,906)(567)

Cash flows from financing activities
Proceeds from short-term borrowings
Redemption of bonds
Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Dividends paid
Other, net-

15,000(1,315)(15,000)
(0)

2,158

-

(2,397)(3,754)

(24)

(27)

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(1,579)(3,782)825

223(5,812)(5,503)

Cash and cash equivalents at beginning of period

94,73078,034

Cash and cash equivalents at end of period

88,91772,5309

(4) Notes to the Quarterly Consolidated Financial Statements(Notes on premise of a going concern)
No relevant items.
(Notes on case of extreme change in shareholder's equity amount)
No relevant items.
(Changes in accounting policies)(Application of the Accounting Standard for Current Income Taxes, etc.)
At the beginning of the fiscal quarter under review, the Company started to adopt the Accounting Standard for Current Income Taxes(ASBJ Statement No. 27 of October 28, 2022; hereinafter, “Revised Accounting Standard 2022”), etc.
Regarding revisions to the accounting classification for corporate taxes, etc. (taxation on other comprehensive income), the Company
conformed to the specific transitional provisions prescribed in the provisory clause under Paragraph 20-3 of the Revised AccountingStandard 2022 and the specific transitional provisions prescribed in the provisory clause under Paragraph 65-2(2) of the
Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28 of October 28, 2022). This does not affect the quarterly
consolidated financial statements.
(Notes on Segment Information)[Segment Information]
1. Three-months ended June 30, 2023 (From April 1, 2023 to June 30, 2023)
Segment information is not shown because the Group’s operations are limited to the single segment of pharmaceutical products.
2. Three-months ended June 30, 2024 (From April 1, 2024 to June 30, 2024)
Segment information is not shown because the Group’s operations are limited to the single segment of pharmaceutical products.

10