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 4, 2022

Consolidated Financial Results
for the Second Quarter of the Term Ending March 31, 2023
(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 to file quarterly securities report: November 7, 2022
Scheduled date to commence dividend payments: December 5,2022
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, 2023 (from April 1,
2022 to September 30, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Six-month period
endedOperating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2022

70,107

10.5

11,677(0.1)

15,96519.1

11,88919.3

September 30, 2021

63,416

11.4

11,6847.0

13,409

22.9

9,965

24.5

Note: Comprehensive income

Six-month period ended September 30, 2022:
Six-month period ended September 30, 2021:

Basic earnings
per shareSix-month period
ended¥23,042 million¥14,988 million[ 53.7 %][135.2 %]Diluted earnings
per share
Yen

Yen

September 30, 2022

155.46－

September 30, 2021

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

Net assets

Millions of yen

Equity-to-asset ratio

Millions of yen%

September 30, 2022

402,930

278,302

63.8

March 31, 2022

350,981258,109

68.3

Reference:

EquityAs of September 30, 2022:
As of March 31, 2022:¥257,215 million¥239,770 million

2. Dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

－

32.00

－

32.00

Fiscal year ending
March 31, 2023
(Forecast)Fiscal year-end

Total

Yen

Yen

－

32.00

64.00

－

32.00

64.00

Note: Revisions to dividends projection published most recently: No
3. Projections of consolidated business results for the term ending March 31, 2023
(From April 1, 2022 to March 31, 2023)
Net sales
Million yen

Full-year

138,500(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%

6.9

Million yen

20,800% Million yen

(7.0)

%

Million yen

21,200 (18.2)

15,000Note: Revisions to projections of consolidated business results published most recently: No%(20.4)

Yen

196.06

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) 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, 2022

76,758,362 shares

As of March 31, 2022

76,758,362 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2022

367,082 shares

As of March 31, 2022

251,343 shares(iii) Average number of shares outstanding during the period
Six-month period ended September 30, 2022

76,477,159 shares

Six-month period ended September 30, 2021

76,507,801 shares

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 ·····································································································

3(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) ······················

101

1. Qualitative information on quarterly results(1) Description of operating results
Consolidated business results for second quarter under review were as follows:[Consolidated business results]
FY 3/2022 2Q(Million yen)
YoY Change
Percent Change

FY 3/2023 2Q
63,416

70,107+6,690+10.5％

Domestic sales

58,82962,914+4,084+6.9％

Overseas sales

4,587

7,193

+2,605+56.8％

Cost of sales

30,72135,297+4,575+14.9％

Selling, general andadministrative expenses

21,011

23,132+2,121+10.1％

Operating profit

11,684

11,677(6)(0.1)％

Ordinary profit

13,40915,965+2,556+19.1％

Profit attributable to owners ofparent9,965

11,889+1,923+19.3％Net sales

Net sales increased 10.5% year on year, to 70,107 million yen.
Domestic net sales increased 6.9% year on year, to 62,914 million yen. Sales for 129 prescription Kampo products increased 6.8%
year on year. This was attributable to enhanced activities associated with e-promotions as well as growth in prescription for products totreat symptoms (fever, cough, etc.) and aftereffects (cough, sense of fatigue, anxiety, etc.) associated with the COVID-19 infection,and seasonal symptoms due to the extreme heat (loss of appetite, losing weight in the summer, etc.) Total sales of drug fosteringformulations*1 grew 2.6% and sales of Daikenchuto, a mainstay item for the Company, increased 2.9% year on year. Total sales ofgrowing formulations*2 rose 11.7% year on year.
Sales of“Drug fostering” program formulations and“Growing” formulations (unit: millions of yen)
Rankingin salesNo. / Product Name

FY 3/2022
2Q

FY 3/2023
2Q

YoY Change/
Percent Change

1100

Daikenchuto

4,790

4,927

+137

+2.9％

“Drug

3

54

Yokukansan

3,720

3,775

+55

+1.5％

fostering”
program4

43

Rikkunshito

3,557

3,698

+141

+4.0％

formulations

8

107

Goshajinkigan

1,736

1,755

+18

+1.1％

23

14

Hangeshashinto

678

708

+30

+4.4％

14,482

14,865

+382

+2.6％

Total of "Drug Fostering" Program formulations2

41

Hochuekkito

3,741

4,060

+319

+8.5％

5

17

Goreisan

2,680

3,198

+517

+19.3％

724

Kamishoyosan

2,415

2,583

+168

+7.0％

16

108

Ninjin`yoeito

961

1,034

+73

+7.6％

17

137

Kamikihito

849

1,013

+164

+19.3％

Total of “Growing” formulations

10,647

11,890+1,242+11.7％

Total of 119 prescriptions excluding “Drug fostering”
program formulations and “Growing” formulations

31,24733,435+2,188+7.0％

Total of 129 prescription Kampo products

56,37760,191+3,814+6.8％“Growing”
formulations:

In addition, sales of OTC Kampo formulations in Japan increased 20.0% year on year, to 2,003 million yen, reflecting a rise in thenumber of stores handling the products.
2

Overseas net sales were 7,193 million yen. Sales on crude drug platforms (of Ping An Tsumura Pharmaceutical Co., Ltd., Shenzhen
Tsumura Medicine Co., Ltd., etc.), primarily sales of crude drugs and crude drug pieces for decoction, grew.
Cost of sales increased 14.9% year on year, to 35,297 million yen, reflecting the growth in net sales and surges in energy prices, raw andother materials, etc. The cost-to-sales ratio rose 1.9 percentage points year on year, to 50.3%.
Selling, general and administrative expenses increased 10.1% year on year, to 23,132 million yen. The increase mainly reflected theposting of temporary expenses for the operation of the Tianjin Plant. The SGA ratio fell 0.1 percentage points year on year, to 33.0%.
As a result, operating profit decreased 0.1% year on year, to 11,677 million yen. The operating profit margin was 16.7%, falling 1.7
percentage points from a year ago. Ordinary profit rose 19.1% year on year, to 15,965 million yen, thanks to the impact of foreignexchange gains, and profit attributable to owners of parent increased 19.3% year on year, to 11,889 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[Impact of COVID-19, etc. on future business results]
During the first six months of the fiscal year under review, orders received were significantly greater than initially anticipated, due to aresurgence of COVID-19, extreme heat and other seasonal factors. Given the potential for a shortage of stock, depending on future
trends in the supply/demand situation, the Company is limiting shipments for certain prescriptions. Although the Company believes
that all of these prescriptions will continue to be available to patients who have been taking them, the Company may not be able tocompletely respond to demand if there are unforeseen circumstances such as a simultaneous epidemic of seasonal influenza and a
resurgence of COVID-19. The Company will bring all employees together in a unified effort to develop and maintain its production
system to ensure a stable supply of prescriptions.
In consideration of the above circumstances, the Company maintains its initial business results projections for the full fiscal year underreview.
(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 51,948 million yen from the end of the previous fiscal year, to 402,930 million
yen. Current assets increased 46,017 million yen from the end of the previous fiscal year, mainly due to a rise in cash and deposits
associated with the issuance of bonds. Non-current assets increased 5,931 million yen from the end of the previous fiscal year, mainly
due to an increase in property, plant and equipment.
Total liabilities were 124,628 million yen, an increase of 31,756 million yen from the end of the previous fiscal year. Current liabilities
increased 1,879 million yen from the end of the previous fiscal year, mainly due to an increase in notes and accounts payable - trade.
Non-current liabilities grew 29,877 million yen from the end of the previous fiscal year, mainly reflecting an increase in bonds
payable.
Net assets totaled 278,302 million yen, an increase of 20,192 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 9,062 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 8,382 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign
currency translation adjustment. Non-controlling interests increased 2,747 million yen from the end of the previous fiscal year.
As a result, the equity ratio fell 4.5 percentage point, to 63.8%.
Cash flows in the first half under review were as follows:
At the end of the first six months of the fiscal year under review, cash provided by operating activities was 9,688 million yen, cashused in investing activities was 8,067 million yen, and cash provided by financing activities was 26,992 million yen.
Cash provided by operating activities was 9,688 million yen. Looking at its breakdown, a major cash inflow item was profit before
income taxes of 15,690 million yen, while a major cash outflow item was income taxes paid of 3,183 million yen. Compared to theprevious fiscal year, cash inflow decreased 2,126 million yen.
Cash used in investing activities was 8,067 million yen. Looking at its breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 6,701 million yen. Compared to a year ago, cash outflow rose 4,467 million yen.
3

Cash provided by financing activities was 26,992 million yen. This mainly reflected 29,857 million yen provided by the issuance ofbonds. Compared to the first six months of the previous fiscal year, cash inflow increased 29,726 million yen.
As a result, cash and cash equivalents increased 32,876 million yen from the end of the previous fiscal year, to 100,412 million yen.
(3) Description of projections of consolidated business results
The projections of consolidated business results for the fiscal year ending March 31, 2023, which were published on August 3, 2022,
remain unchanged.

4

3. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
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
Provision for share awards for directors (and otherofficers)
Other
Total non-current liabilities
Total liabilities

5

As of September 30, 2022

67,55254,87910,247
13,614
68,88914,360(123)
229,420

100,420
58,597
10,13813,13977,485
15,797(141)
275,438

89,56396,621(96,143)
90,04092,610103,325(102,191)
93,7448,513
3,814
12,3289,335
5,243
14,578

10,184
2,842
6,165
(0)
19,192
121,561
350,981

9,778
3,059
6,330
(0)
19,169127,492
402,930

13,676
10,313
3,271
18,61445,875

15,90910,313
3,937
17,59547,75430,0009,377
55

60,000
9,377
57

－

55

7,563
46,99692,871

7,382
76,873
124,628

(Millions of yen)
As of March 31, 2022
Net assets
Shareholders' equity
Share capital
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

6

As of September 30, 2022

30,142
13,732
182,929(682)
226,12130,142
13,739192,370(1,067)
235,184

2,324
2,020
2,673
6,911
(280)
13,64818,339258,109
350,981

2,038
1,749
2,673
15,848(278)
22,031
21,086278,302402,930

(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

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

Six-month period ended
September 30,2021(From April 1, 2021
to September 30, 2021)
63,41630,721
32,69521,011
11,684(Millions of yen)Six-month period ended
September 30,2022(From April 1, 2022
to September 30, 2022)
70,10735,29734,80923,132
11,677

234
129
1,184
310
1,858

247
137
3,950
208
4,543

116
－
17
133
13,409

92
142
19
255
15,965

21
21

3
3

－
264
－
264
13,165
3,253
9,911
(54)
9,965

0
25
252
278
15,6903,649
12,041
152
11,8897

Quarterly Consolidated Statements of Comprehensive Income / For the Second Quarter Consolidated Accumulative Term
(Millions of yen)Six-month period ended
Six-month period ended
September 30,2021
September 30,2022(From April 1, 2021
(From April 1, 2022
to September 30, 2021)
to September 30, 2022)
Profit9,911
12,041Other comprehensive income
Valuation difference on available-for-sale securities
(826)
(285)
Deferred gains or losses on hedges
(140)
(270)
Foreign currency translation adjustment
5,995
11,489Remeasurements of defined benefit plans, net of tax
10
1
Share of other comprehensive income of entities
37
65
accounted for using equity method
Total other comprehensive income
5,076
11,001
Comprehensive income
14,98823,042Comprehensive income attributable toComprehensive income attributable to owners of parent
13,696
20,271
Comprehensive income attributable to non-controlling
1,291
2,770
interests8

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30,2022(From April 1, 2022
to September 30, 2022)

Six-month period ended
September 30,2021(From April 1, 2021
to September 30, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Bond issuance costs
Loss (gain) on sale and retirement of property, plant andequipment
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
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Purchase of treasury shares
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 period

913,165
4,322
218
13
(364)
116
－

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

243

22

(2,868)(2,766)
3,450
(209)
6
148
15,477365(133)(3,894)
11,815(2,500)
(490)
554
(218)
6
(5,543)
12,604368(100)(3,183)
9,688

1,711
(4,764)
52
(226)

13
(6,701)18(1,071)(6,669)(1,334)

6,664

1,328

－
0
(367)
(3,600)

(171)
0
(149)
(8,067)

(167)
9,377
(9,376)－(1)(2,447)(87)(30)(2,733)
2,145
7,627
59,66867,296－－－29,857(445)(2,447)－28
26,992
4,262
32,876
67,536
100,412(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