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.

October 29, 2021

NEWS RELEASE
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TSUMURA & CO.
Tokyo Stock Exchange
4540
https://www.tsumura.co.jp
Terukazu Kato, President, Representative Director and CEO
Ritsuko Inukai, Head of Corporate Communications Dept.
+81-3-6361-7100

Tsumura Announces Revision of Earnings Forecast
TSUMURA & CO. (Headquarters: Tokyo, Japan; President, Representative Director and CEO: Terukazu Kato;
hereinafter the “Company”) announces the revision of its earnings forecast announced on May 11, 2021 based onrecent performance trends.
Details are as follows.

1.Consolidated business results for the Second quarter of the term ending March 31, 2022
(from April 1, 2021 to September 30, 2021)
Million yen
59,40063,4004,000
6.7％OperatingprofitMillion yen
8,700
11,6002,900
33.3％

56,952

10,920Net sales
Previous forecast (A)Revised forecast (B)Change (B - A)
Percentage change (%)

Million yen9,000
13,4004,400
48.9％

Profit attributable toowners of parent
Million yen
6,900
9,900
3,000
43.5％

10,9098,002

Ordinary profit

Profit per shareYen
90.19
129.40（Reference) Results forprevious second quarter（ended September 30, 2020)

104.592. Consolidated business results for the fiscal year ending March 31, 2022
(from April 1, 2021 to March 31, 2022)
Million yen
122,500
127,500
5,000
4.1％

Operatingprofit
Million yen
19,50021,1001,600
8.2％

116,413

19,382

Net sales
Previous forecast (A)Revised forecast (B)Change (B - A)
Percentage change (%)

Million yen
20,00023,4003,400
17.0％

Profit attributable toowners of parent
Million yen
14,20016,6002,400
16.9％

20,866

15,332

Ordinary profit

Profit per shareYen
185.60216.97（Reference) Results forprevious fiscal year
（ended March 31, 2021)

200.403. Reason of revision
In the first half of the fiscal year ending March 31, 2022, the Company advanced its information provision activities
in response to demand for medical services in the business of pharmaceuticals in Japan. Sales for a wide range ofprescription medicines surpassed its initial plan, in addition to sales for *1 “Drug fostering” program formulations
and *2 “Growing” formulations. As a result, it is anticipated that sales for the business will surpass the previously
announced forecast. Sales for the Chinese business are predicted to rise above the initial plan, too, due to the strong
sales of products, including crude drugs and crude drug pieces for decoction.
The Company expects consolidated net sales to reach 63,400 million yen, an increase of 4,000 million yen from theinitial plan.
The Company predicts profits to surpass forecasts announced on the previous occasion, attributable to factors
including the transfer of R&D expenses and the like to the second half in selling, general and administrative expenses
and the reduction of expenses associated with changes in activities, in addition to the positive effect that increased
revenue is expected to have on profits.
As a result, the Company forecasts operating profit of 11,600 million yen, an improvement of 2,900 million yen fromthe initial plan, ordinary profit of 13,400 million yen, an improvement of 4,400 million yen, and profit attributableto owners of parent of 9,900 million yen, an improvement of 3,000 million yen.
The Company forecasts that net sales for the domestic prescription medicines business will continue to climb on afull-year basis, supported by increased activities for providing information by means including e-promotions and thesustained strength of sales of products centered on crude drugs and crude drug pieces for decoction in the Chinesebusiness.
The Company expects consolidated net sales to total 5,000 million yen more than its initial plan and reach 127,500
million yen.
The Company expects profits to surpass the previously announced forecasts, even though, in selling, general andadministrative expenses, the investment amount for the measures leading to the expansion of the Kampo market isexpected to increase.
As a result, the Company forecasts operating profit of 21,100 million yen, an improvement of 1,600 million yen fromthe initial plan, ordinary profit of 23,400 million yen, an improvement of 3,400 million yen, and profit attributableto owners of parent of 16,600 million yen, an improvement of 2,400 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 specificallyeffective 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 thedegree of satisfaction with medical treatment and the degree of drug contribution are low(Note) The above forecasts are based on information available as of the date of these materials and do not take into
consideration the impact of currently unforeseeable risks such as the impact of further coronavirus outbreaks onsocial and economic activity. Actual financial results may differ materially from these forecasts depending ona number of factors. The Company will make timely and appropriate disclosure should the situation change inthe future.