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.

November 7, 2023

Consolidated Financial Results
for the Second Quarter of the Term Ending March 31, 2024
(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 file quarterly securities report: November 8, 2023
Scheduled date to commence dividend payments: December 5, 2023
Preparation of supplementary material on quarterly 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 second quarter of the term ending March 31, 2024 (from April 1,
2023 to September 30, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Six-month period
endedOperating profit

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2023

75,302

7.4

10,211(12.6)

12,675(20.6)

9,005(24.3)

September 30, 2022

70,107

10.5

11,677(0.1)

15,96519.1

11,88919.3

Note: Comprehensive income

Six-month period ended September 30, 2023:
Six-month period ended September 30, 2022:

Basic earnings
per shareSix-month period
ended¥18,297 million¥23,042 million[(20.6) %][53.7 %]

Diluted earnings
per share
Yen

Yen

September 30, 2023

118.38－September 30, 2022

155.46－(2) Consolidated financial condition
Total assets
As of

Net assets

Millions of yen

Equity-to-asset ratio

Millions of yen%

September 30, 2023

416,840

288,920

63.5

March 31, 2023

396,813272,246

63.5

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:¥264,821 million¥252,046 million

2. Dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

－

32.00

－

35.00

Fiscal year ending
March 31, 2024
(Forecast)Fiscal year-end

Total

Yen

Yen

－

32.00

64.00

－

35.00

70.00

Note1: Revisions to dividends projection published most recently: Yes
Note2: Please refer to the “Notice Concerning Revision of Basic Capital Management Policy and Shareholder Return
Policy and Revision of Dividends Projection (Dividend Increase)” released today (November 7, 2023) for the revision
to the dividends projection.
3. Projections of consolidated business results for the term ending March 31, 2024
(From April 1, 2023 to March 31, 2024)
Net sales
Million yen

Full-year

150,500(Figures in percentage show the rate of increase or decrease from the previous fiscal year)
Profit attributable toOperating profit
Ordinary profit
Profit per shareowners of parent%

7.5

Million yen

18,000% Million yen(13.9)%

Million yen

18,600 (20.7)

13,000Note: Revisions to projections of consolidated business results published most recently: No%(21.1)

Yen

171.02

* 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: Yes
Note: For details, see “2. Quarterly Consolidated Financial Statements and Key Notes (4) Notes to the Quarterly
Consolidated Financial Statements (application of specific accounting treatment to the preparation of quarterly
financial statements)” on page 10 of the material attached hereto.
(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: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

76,758,362 shares

As of March 31, 2023

76,758,362 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2023

831,774shares

As of March 31, 2023

367,332shares(iii) Average number of shares outstanding during the period
Six-month period ended September 30, 2023

76,066,527shares

Six-month period ended September 30, 2022

76,477,159shares

Note: At the beginning of the consolidated fiscal year under review, the Company introduced the Board Incentive
Plan Trust. As a result, the shares of the Company’s stock held by the trust are included in treasury shares that are
deducted in calculating the number of treasury shares at the end of the period and the average number of shares
outstanding during the period.
* 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 Second Quarter Consolidated Accumulative Term ·······································································

7

Quarterly Consolidated Statements of Comprehensive Income
For the Second 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(Application of specific accounting treatment to the preparation of quarterly financial statements) ······················

10(Significant subsequent events) ·······································································································

101

1. Qualitative information on quarterly results(1) Description of operating results
Consolidated business results for the second quarter under review were as follows:[Consolidated business results](Million yen)
FY 3/2023 2Q

YoY Change
Percent Change

FY 3/2024 2Q

70,10775,302＋5,195＋7.4％

Domestic business

62,922

66,131＋3,208＋5.1％

China business

7,184

9,171

＋1,986＋27.7％

Cost of sales

35,29740,877＋5,580＋15.8％

Selling, general and administrative
expenses

23,132

24,213＋1,081＋4.7％

Operating profit

11,677

10,211(1,465)（12.6）％

11,765

10,426(1,339)（11.4）％

(87)

(214)

(126)
－

Ordinary profit

15,965

12,675(3,290)（20.6）％

Profit attributable to owners ofparent11,8899,005(2,884)（24.3）％Net sales

Domestic business
China businessNet sales increased 7.4% year on year, to 75,302 million yen.
Net sales of domestic business increased 5.1% year on year, to 66,131 million yen. Sales of 129 prescription Kampo preparations
increased 5.9% year on year due to continuous growth of prescriptions in the cardiovascular area and ones for symptoms such as
anxiety/insomnia and dizziness. Total sales of drug fostering formulations*1 grew 0.9% year on year while total sales of growing
formulations*2 rose 6.4% year on year.

2

Sales of“Drug fostering” program formulations and“Growing” formulations (unit: millions of yen)
Rankingin salesNo. / Product Name

FY 3/2023

FY 3/2024

YoY Change/

2Q

2Q

Percent Change

1100

Daikenchuto

4,927

4,937

＋9

＋0.2％

“Drug

3

54

Yokukansan

3,775

3,819

＋43

＋1.2％

fostering”
program4

43

Rikkunshito

3,698

3,685

(12)

(0.3)％

formulations

9

107

Goshajinkigan

1,755

1,836

＋80

＋4.6％

24

14

Hangeshashinto

708

716

＋8

＋1.2％

14,865

14,996

＋130

＋0.9％

Total of "Drug Fostering" Program formulations

Growing
formulations:241

Hochuekkito

4,060

4,109

＋48

＋1.2％

5

17

Goreisan

3,198

3,674

＋476

＋14.9％

624

Kamishoyosan

2,583

2,578

(5)

(0.2)％

16

137

Kamikihito

1,013

1,161

＋148

＋14.6％

17

108

Ninjin`yoeito

1,034

1,127

＋92

＋9.0％

11,89012,650

＋760

＋6.4％

33,43536,074＋2,638＋7.9％

60,191

63,720＋3,528＋5.9％

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

Sales of OTC Kampo formulations in the domestic business decreased 12.6% year on year to 1,751 million yen because formulations
related to cold symptoms and other products have remained in short supply.
Net sales of business in China increased 27.7% year on year, to 9,171 million yen, due to significant growth in sales on crude drug
platforms (of Ping An Tsumura Pharmaceutical Co., Ltd., Shenzhen Tsumura Medicine Co., Ltd., etc.), which primarily include sales ofcrude drugs and crude drug pieces for decoction.
Cost of sales increased 15.8% year on year, to 40,877 million yen, mainly reflecting the growth in net sales, rising crude drug
procurement costs, continued high prices of energy and raw and other materials and the weaker yen. The cost-to-sales ratio rose 4.0
percentage points year on year, to 54.3%.
Selling, general and administrative expenses increased 4.7% year on year, to 24,213 million yen. The increase mainly reflected increases
in R&D expenses and system expenses related to systems for the DX of the Kampo value chain. The SGA ratio fell 0.8 percentage points
year on year, to 32.2%.
As a result, operating profit decreased 12.6% year on year, to 10,211 million yen. The operating profit margin was 13.6%, falling 3.1
percentage points from a year ago. Ordinary profit declined 20.6% year on year, to 12,675 million yen, due in part to a decrease inforeign exchange gains, and profit attributable to owners of parent decreased 24.3% year on year, to 9,005 million yen.
*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[Situation of limited shipments]
All limits to shipments of 129 prescription Kampo products were removed on July 31, 2023. Subsequently, however, the demand for
Kampo products increased more than expected due to increases in COVID-19 cases and flue cases and antitussives supply instability,
and shipments of certain prescription Kampo products were suspended or limited. The impact of this matter on the Group’s
consolidated results will be minor. The Company will gradually end limits on shipments by putting in place a system for increasing
production increase and adjusting production plans.
3(2) Description of financial condition
The financial position at the end of the second quarter under review was as follows:
Total assets at the end of the second quarter increased 20,027 million yen from the end of the previous fiscal year, to 416,840 million
yen. Current assets increased 10,940 million yen from the end of the previous fiscal year, mainly due to a rise in inventories. Noncurrent assets increased 9,086 million yen from the end of the previous fiscal year, mainly due to increases in property, plant andequipment, intangible assets and investment securities.
Total liabilities were 127,920 million yen, an increase of 3,353 million yen from the end of the previous fiscal year. Current liabilities
increased 2,705 million yen from the end of the previous fiscal year. Non-current liabilities increased 647 million yen from the end of
the previous fiscal year.
Net assets totaled 288,920 million yen, an increase of 16,673 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 5,240 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 7,534 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign
currency translation adjustment. Non-controlling interests increased 3,899 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 63.5%.
Cash flows in the first half under review were as follows:
Cash and cash equivalents as of the end of the second quarter under review was 81,285 million yen, a decrease of 13,444 million yen
from the end of the previous fiscal year. Cash flows in the first half under review and year-on-year changes in cash flows were as
follows.
Cash provided by operating activities was 601 million yen. Looking at its breakdown, a major cash inflow item was profit before
income taxes of 12,655 million yen, while major cash outflow items were an increase in inventories of 7,641 million yen and income
taxes paid of 3,101 million yen. Compared to the previous fiscal year, cash inflow decreased 9,087 million yen.
Cash used in investing activities was 14,080 million yen. Looking at its breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 7,572 million yen. Compared to a year ago, cash outflow rose 6,012 million yen.
Cash used in financing activities was 1,694 million yen. Looking at its breakdown, major cash flow items were proceeds frompayments from non-controlling interests of 2,158 million yen, purchase of treasury shares of 1,316 million yen and dividends paid of
2,449 million yen. Compared to a year ago, cash outflow rose 28,687 million yen.
(3) Description of projections of consolidated business results
The projections of consolidated business results for the fiscal year ending March 31, 2024, which were published on May 9, 2023,
remain unchanged.
As stated in “Tsumura Announces Conclusion of Agreement Regarding Transfer of Equity Interest in Shaanxi Unisplendour Life Care
Pharmaceutical Co., Ltd. by Ping An Tsumura Inc.,” published on July 31, 2023, an equity interest in Shaanxi Unisplendour Life Care
Pharmaceutical Co., Ltd. was transferred on July 31, 2023.
In its China business, Tsumura will continue striving to enhance corporate value, aiming to contribute to the health of Chinese people
through the businesses of crude drug, crude drug pieces, traditional Chinese medicinal product, and Medical & Health(Yakushokudogen health food and functional food, etc.).

4

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Other
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Other
Total 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
Total non-current liabilities
Total liabilities

5

As of September 30, 2023

94,752
58,087
11,257
14,43076,03813,933(178)
268,320

81,31465,883
12,49918,525
81,406
19,852(222)
279,260

91,197
107,260(105,042)
93,41594,444
111,865(110,062)
96,247

8,480
6,166
14,6478,616
7,885
16,501

11,160
2,518
6,750
(0)
20,429128,492
396,813

15,242
2,737
6,850
(0)
24,830137,579
416,840

16,443
10,313
3,233
17,21447,205

17,598
10,313
3,557
18,442
49,91060,0009,377
59－

60,000
9,377
56
209

111

166

7,814
77,361
124,566

8,199
78,009127,920

(Millions of yen)
As of March 31, 2023
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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

6

As of September 30, 2023

30,142
13,739194,224(1,068)237,037

30,142
13,739200,780(2,384)242,277

2,647

5,474

29
2,673
10,455(796)
15,00820,199272,246
396,813987
2,673
14,186(778)
22,54324,098288,920
416,840

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income / For the Second Quarter Consolidated Accumulative Term
(Millions of yen)Six-month ended
September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Bond issuance costs
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on COVID19
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

Six-month ended
September 30, 2023
70,10735,29734,80923,132
11,67775,30240,87734,42524,213
10,211

247
137
3,950
208
4,543

391
144
1,980
166
2,683

92
142
19
255
15,965

195
－
23
219
12,675

3
3

0
0

0
25
252
278
15,6903,649
12,041
152
11,889－20－
20
12,655
3,002
9,652
647
9,005

Quarterly Consolidated Statements of Comprehensive Income / For the Second Quarter Consolidated Accumulative Term
(Millions of yen)Six-month ended
September 30, 2022
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 ofparentComprehensive income attributable to non-controllinginterests

8

Six-month ended
September 30, 2023
12,041

9,652

(285)
(270)
11,489
1

2,827
957
4,841
17

65

－

11,001
23,042

8,644
18,297

20,271

16,539

2,770

1,758

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six-month ended
September 30, 2022
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
Bond issuance costs
Loss (gain) on sale and retirement of property, plantand equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Other, net
SubtotalInterest 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
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 andlong-term investment securities
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of bonds
Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Dividends paid
Dividends paid to non-controlling interests
Other, net
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
Cash and cash equivalents at end of period9Six-month ended
September 30, 2023

15,690
4,980
248
2
(384)
92
142

12,655
4,928
254
35
(536)
195
－

22

19

(2,500)
(490)
554
(218)
6
(5,543)
12,604368(100)(3,183)
9,688(7,141)(7,641)
451
(198)
2
281
3,307
555
(160)
(3,101)601

13(6,701)18(1,071)－(7,572)
5(1,514)(1,334)(5,495)

1,328

778

(171)
0
(149)
(8,067)－0(281)(14,080)

29,857(445)－(1,316)－

2,158(2,447)－28
26,992(2,449)(40)(47)(1,694)

4,262

1,729

32,876
67,536
100,412(13,444)
94,73081,285

(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.
(Application of specific accounting treatment to the preparation of quarterly financial statements)(Deferment of cost variance)
Cost variance caused by seasonal changes in operation rates, etc. is expected to be eliminated for the most part by the end of the costaccounting period, which is, therefore, deferred as “current assets (other) or current liabilities (other).”10