Outline of Consolidated Financial Results for the Year Ended March 31, 2022
May 11, 2022
Name of the listed company: NIPPON SHINYAKU CO., LTD.
Listing stock exchange: Tokyo
Code No.: 4516
URL https://www.nippon-shinyaku.co.jp/
Representative: Toru Nakai, President and Representative Director
Contact: Hideyuki Fujii, Department Manager and Finance & Accounting Dept.
Tel. +81-75-321-9116
Scheduled date for annual general meeting of shareholders: June 29, 2022
Scheduled start of payment: June 30, 2022
Scheduled date for submission of Securities Report: June 30, 2022
Supplementary material:
Yes
Financial result meeting:Yes (for institutional investors and securities analysts)* All amounts are rounded down to the nearest million yen.
1. Consolidated Results for the Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Operating results
Net salesYear ended March 31, 2022
137,547
12.8%
Year ended March 31, 2021
121,885
4.5%
Note: Comprehensive income
As of March 31, 2022: ¥21,028 million (8.5%)
Net income per share (¥)
BasicDiluted

Operating income

Ordinary income

28,29926,13429,773
26,7608.3%20.6%(¥ million)
Net income attributableto owners of the parent

11.3%
19.2%

23,04420,702

11.3%
22.7%

As of March 31, 2021: ¥22,982 million 41.5%
Return on equity

Ordinary income tototal assets

Operating income tonet sales－Year ended March 31, 2022
342.14
13.6%
14.6%
20.6%
－Year ended March 31, 2021
307.37
13.5%
14.4%
21.4%
Notes: 1. Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.
2. Equity-method investments: not applicable(2) Financial position
Total assets
As of March 31, 2022
As of March 31, 2021
Note: Owners’ equity
As of March 31, 2022: ¥176,466 million

Net assets

210,052
197,028

Equity ratio

176,767
162,543

84.0%
82.4%

2,620.02
2,409.01

As of March 31, 2021: ¥162,254million(3) Cash flows
Cash flows fromoperating activities
As of March 31, 2022
As of March 31, 2021(¥ million)
Net assets per share (¥)

Cash flows frominvesting activities

16,01821,388Cash flows fromfinancing activities(¥ million)
Cash and cash
equivalents at year-end(6,801)(6,199)60,56657,883(6,359)(1,564)

2. Dividends
Annual dividends per share (¥)
nd2 quarter

Year-end

AnnualTotal dividends
Payout ratio(full term)(consolidated)(¥ million)

Dividends as apercentage ofnet assets(consolidated)Year ended March 31, 2021

49.00

50.00

99.00

6,667

32.2%

4.3%

Year ended March 31, 2022

51.00

59.00

110.00

7,408

32.2%

4.4%

Year ending
March 31, 2023(forecast)

56.00

56.00

112.0035.1%

Note: The consolidated payout ratio for the year ending March 31, 2023 (forecast) is calculated based on net income attributable toowners of the parent per share which is calculated based on International Financial Reporting Standards (IFRS).

- 1 -3. Business Forecast for the Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

Net sales

Operating income(¥ million)
Net income
Net income
attributable toOrdinary income
attributable toowners of theowners of the parent
parent per share (¥)－ 14,500－ 14,700－ 11,300－
First-half period
67,000167.77－ 27,000－ 27,500－ 21,500－
Full term
134,000
319.21
Note: The company will voluntarily adopt International Financial Reporting Standards (IFRS) starting with the consolidated financial
statements in the annual Securities Report for the year ended March 31, 2022, and accordingly, the business forecast for the year
ending March 31, 2023 is based on IFRS. Therefore, year-on-year comparisons with previous fiscal year based on Japan GAAP
are not shown.
4. Others(1) Changes in the scope of consolidation
Inclusion: Yes
Exclusion: None

Tianjin Nippon Shinyaku Co., LtdNote: Changes in specified subsidiaries involved changes in the scope of consolidation(2) Changes in accounting policies and accounting estimates, and restatement
1. Changes in accounting policies arising from revision of accounting standards: Yes
2. Changes in arising from other factors: None
3. Changes in accounting estimates: Yes
4. Restatement: None
(3) Number of shares outstanding (ordinary shares)
Number of shares outstanding (including treasury stock)
As of March 31, 2022:
70,251,484 shares
As of March 31, 2021:
70,251,484 shares
Number of shares of treasury stock
As of March 31, 2022:
As of March 31, 2021:

2,898,434 shares
2,898,183 shares

Average number of shares outstanding (total for the consolidated period)
As of March 31, 2022:
As of March 31, 2021:

67,353,219 shares
67,353,565 shares

Note:
This summary of financial results is exempt from the audit procedures under the Financial Instruments and Exchange Act. At the timeof disclosure, published figures in this financial release have not been completed to an audit of financial statements based on theFinancial Instruments and Exchange Law.
The above forecasts are based on data available as of the date of release of this document as well as assumptions based on uncertain
factors, which might have a material effect on the Company’s performance in the future. Readers are advised that actual results may
differ substantially from the above forecasts due to various unforeseeable factors.

- 2 -5. Consolidated Financial Statement(1) Consolidated Balance Sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Electronically recorded monetary claims
Securities
Merchandise and finished goods
Semi-finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Long-term prepaid expenses
Retirement benefit asset
OtherTotal investments and other assets
Total non-current assets
Total assets

As of March 31, 2022

47,77039,289508
13,02918,292
6,050
890
10,2912,968(0)
139,090

50,41342,128540
15,10018,965
6,369
1,543
10,9753,595(0)149,632

28,287(19,277)
9,010
12,811(10,019)

29,065(19,424)
9,641
12,865(10,051)

2,791

2,814

9,408
(7,785)
1,622
7,430
451
21,306677

9,755(7,650)
2,105
7,430
1,849
41
23,881
923

22,113
1,518
9,390
621
2,310
35,95457,937
197,02820,342
2,823
9,029
1,147
2,271
35,61560,419210,052

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable
Accounts payable
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

As of March 31, 2022

9,543
8,131
1,367
6,679
582
3,096
2,114
31,514

9,535
11,087
1,605
3,181
201
3,079
596
29,288

2,646
324
2,970
34,485

3,680
316
3,997
33,285

5,174
4,445
147,391(2,476)
154,535

5,174
4,445
163,633(2,478)
170,774

8,911

7,996

11(96)(1,107)135(256)(2,183)

7,719

5,691

288
162,543
197,028301
176,767
210,052

(2) Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Depreciation
Research and development expenses
Promotion expenses
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Gain on sale of investment securities
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Donations
Rental expenses
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Fiscal year ended
March 31, 2022

121,885
49,954
71,931

137,54750,657
86,89010,211
2,094
521
374
16,104
4,979
11,51010,452
2,060
661
394
26,386
5,523
13,11145,79658,591

26,13428,299

21
510
470
－
192
132
1,326

17
455
459
537
769
120
2,359

2
364
140
193
701
26,760

1
336
172
374
884
29,773

62
1,936
1,998
28,759
8,821
(783)
8,038
20,72118
20,702－－－
29,773
7,173
(456)
6,716
23,05612
23,044

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

Fiscal year ended
March 31, 2022

20,721

23,056

1,982

(915)

4(92)

124
(160)

367

(1,075)

2,261
22,982(2,028)21,02822,96321,0151812

(3) Consolidated Statements of Changes in Net Assets(Millions of yen)
Shareholders' equity

Year ended March 31,2021
Balanceperiodatbeginning

Share capitalofCapital surplus

Retained earnings

Treasury shares

Total shareholders'equity

4,445

132,886(2,473)140,032

5,174

Changes during period
Dividends of surplus
Profit attributableowners of parent
Purchasesharesofto(6,196)(6,196)

20,702

20,702treasury(3)(3)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－－

14,505(3)

14,502

5,174

4,445

147,391(2,476)

154,535

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balanceperiodat

beginning

of

6,929

Total
Foreign
Deferred gains
Remeasurements accumulated
currency
or losses onof definedothertranslation
hedgesbenefit plans comprehensiv
adjustmente income7(3)(1,475)

5,458

Noncontrollinginterests

269

Total net
assets145,760

Changes during period
Dividends of surplus
Profit attributableowners of parent
Purchasesharesof(6,196)
to20,702

treasury(3)

Net changes in items otherthan shareholders' equity

1,982

4(92)

367

2,261

18

2,280

Total changes during period

1,982

4(92)

367

2,261

18

16,782

Balance at end of period

8,911

11(96)(1,107)

7,719

288

162,543

(Millions of yen)
Shareholders' equity

Year ended March 31,2022
Balanceperiodatbeginning

Share capitalof

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity4,445

147,391(2,476)

154,535

5,174

Changes during period
Dividends of surplus
Profit attributableowners of parent
Purchasesharesofto(6,802)(6,802)

23,04423,044treasury(2)(2)Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－－

16,241(2)

16,239

5,174

4,445

163,633(2,478)

170,774

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balanceperiodat

beginning

of

8,911

TotalForeign
Deferred gains
Remeasurements accumulated
currency
or losses onof definedothertranslation
hedgesbenefit plans comprehensiv
adjustmente income
11(96)(1,107)

7,719

Noncontrollinginterests

288

Total net
assets162,543

Changes during period
Dividends of surplus
Profit attributableowners of parent
Purchasesharesof(6,802)
to23,044

treasury(2)

Net changes in items otherthan shareholders' equity(915)

124(160)(1,075)(2,028)12(2,015)

Total changes during period

(915)

124

(160)

(1,075)(2,028)12

14,223

Balance at end of period

7,996

135(256)(2,183)

5,691

301

176,767(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Decrease (increase) in retirement benefit
asset
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption
taxes
Increase(decrease)
inothercurrent
liabilities
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant andequipment
Loss (gain) on sale of investment securities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of long-term prepaid expenses
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activitiesDividends paid
Purchase of treasury shares
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

Fiscal year ended
March 31, 2022

28,7593,550
101

29,7732,933(16)(1,858)(1,306)

457

264

(531)
2
1,724
(5,629)306(1,669)(472)
1(2,778)(2,246)
(462)
(64)

261

(364)

1,523

1,415

(52)

(19)

(62)

(1)

(1,936)
214
25,162532(2)(4,304)(537)
78
26,197473(1)(10,650)

21,38816,018(662)
582(2,000)2,010(1,102)
2,542(2,168)(1,114)654(3,400)
2,029
(1)
735
(3,165)

195

1(694)(266)(1,580)(517)(1,564)(6,359)(6,196)(3)(6,799)(2)(6,199)(6,801)

(40)

(174)

13,5842,683

44,29857,88357,88360,566