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.

May 9, 2023

Consolidated Financial Results
for the Fiscal Year Ended 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:
Makoto Kitamura, Head of Corporate Communications Dept.
Telephone:+81-3-6361-7100
Scheduled date of annual general meeting of shareholders:June 29, 2023
Scheduled date to commence dividend payments:
June 30, 2023
Scheduled date to file annual securities report:
June 29, 2023
Preparation of supplementary material on 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 fiscal year ended March 31, 2023 (from April 1, 2022 to March 31,
2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2023

140,043

8.1

20,916(6.5)

23,453(9.5)

16,482(12.5)March 31, 2022

129,546

11.3

22,37615.4

25,90424.1

18,83622.9

Note: Comprehensive income

For the fiscal year ended March 31, 2023:
For the fiscal year ended March 31, 2022:

Basic earnings
per share

Diluted earnings
per share¥19,757 million¥29,889 million

Return on equity[(33.9)%][72.0%]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

Fiscal year ended

Yen

March 31, 2023

215.63

－

6.7

6.3

14.9

March 31, 2022

246.21

－

8.2

7.7

17.3

Reference:equity in earnings of affiliates
For the fiscal year ended March 31, 2023:
For the fiscal year ended March 31, 2022:

Yen%¥ －million¥ －million%%

(2) Consolidated financial condition
Total assets
As of

Net assets

shareholder’s equity ratio

shareholders’ equity per
share

%

Yen

Millions of yen

Millions of yen

March 31, 2023

396,813272,24663.5

3,299.42

March 31, 2022

350,981258,10968.3

3,133.97

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:¥252,046 million¥239,770 million(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2023

16,452(15,493)

24,423

94,730March 31, 2022

21,314(9,111)(8,181)

67,536

2. Dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Yen

Fiscalyear-end

Yen

Total cash
dividends(Total)

Total

Yen

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

－

32.00

－

32.00

64.00

4,896

26.0

2.1

－

32.00

－

32.00

64.00

4,897

29.7

2.0

－

32.00

－

32.00

64.00

37.4

3. Projections of consolidated business results for the term ending March 31, 2024
(From April 1, 2023 to March 31, 2024)(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

74,000150,500% Million yen

5.6
7.5

9,500
18,000% Million yen(18.6)(13.9)

9,800
18,600% Million yen(38.6)(20.7)

6,800
13,000%(42.8)(21.1)

Yen

89.46
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) 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
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

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 March 31, 2023

367,332 shares

As of March 31, 2022

251,343 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

76,437,438 sharesFiscal year ended March 31, 2022

76,507,513 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.
Overview of Operating Results, etc. (4) Future outlook” on page 4 for information regarding the forecast of
consolidated financial results.

○Contents of accompanying materials
1. Overview of Operating Results, etc. ·······································································································

2(1) Overview of operating results for the fiscal year ended March 31, 2023 ·························································

2(2) Overview of financial condition during the fiscal year ended March 31, 2023 ··················································

4(3) Overview of cash flow during the fiscal year ended March 31, 2023 ·····························································

4(4) Future outlook ····························································································································

4

2. Basic idea of the selection of accounting standards······················································································

5

3. Consolidated Financial Statements and Key Notes ······················································································

6(1) Consolidated Balance Sheets ···········································································································

6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ······························

8(3) Consolidated Statements of Changes in Equity ······················································································

10(4) Consolidated Statements of Cash Flows ·····························································································

12(5) Notes to the Consolidated Financial Statements ····················································································

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

13(Notes to consolidated statements of income) ······················································································

13(Segment information) ·················································································································

13(Per share information) ················································································································

14(Significant subsequent events) ·······································································································

141

1. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year ended March 31, 2023
Consolidated business results for the fiscal year under review were as follows:[Consolidated business results]
Fiscal year ended March 31,
2022

Fiscal year ended March 31,2023(Million yen)
YoY Change
Percent Change

129,546

140,043+10,497+8.1%

Domestic sales

119,567

124,684+5,116+4.3%

Overseas sales

9,978

15,359+5,380+53.9%

Cost of sales

63,081

71,762+8,680+13.8%

Selling, general andadministrative expenses

44,08847,365+3,277+7.4%

Operating profit

22,376

20,916(1,460)(6.5)%

Ordinary profit

25,90423,453(2,451)(9.5)%

Profit attributable to owners ofparent18,836

16,482(2,354)(12.5)%Net sales

Net sales increased 8.1% year on year, to 140,043 million yen.
Domestic net sales increased 4.3% year on year, to 124,684 million yen. Sales for 129 prescription Kampo products increased 4.6%
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.) in July and August. Total sales ofdrug fostering formulations*1 grew 0.6% and sales of Daikenchuto, a mainstay item for the Company, increased 1.8% year on year.
Total sales of growing formulations*2 rose 10.3% year on year.

2

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

Fiscal year

No. / Product Name

ended March
31, 2022

ended March
31, 2023

1

100 Daikenchuto

9,569

9,739

＋169

＋1.8％

“Drug
fostering”

3

54 Yokukansan

7,379

7,380

＋1

＋0.0％

programformulations

4

43 Rikkunshito

7,231

7,300

＋69

＋1.0％

8

107 Goshajinkigan

3,509

3,421

(87)

(2.5)％

24

14 Hangeshashinto

1,358

1,390

＋32

＋2.4％

29,04829,233

＋184

＋0.6％

Rankingin salesTotal of "Drug Fostering" Program formulations“Growing”
formulations:YoY Change/
Percent Change

2

41 Hochuekkito

7,232

7,727

＋494

＋6.8％

5

17 Goreisan

5,298

6,208

＋910

＋17.2％

6

24 Kamishoyosan

4,833

5,050

＋217

＋4.5％

17

108 Ninjin`yoeito

1,936

2,128

＋191

＋9.9％

18

137 Kamikihito

1,722

2,067

＋344

＋20.0％

21,02323,182＋2,159＋10.3％

64,093

66,946＋2,853＋4.5％

114,165

119,362＋5,197＋4.6％

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

In addition, sales of OTC Kampo formulations in Japan increased 3.2% year on year, to 3,966 million yen, reflecting a rise in thenumber of stores handling the products and the growth of formulations related to symptoms of COVID-19.
Overseas net sales were 15,359 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 13.8% year on year, to 71,762 million yen, mainly reflecting the growth in net sales and surges in raw andother materials. The cost-to-sales ratio rose 2.5 percentage points year on year, to 51.2%.
Selling, general and administrative expenses increased 7.4% year on year, to 47,365 million yen. The increase mainly reflected theposting of temporary expenses for the operation of the Tianjin Plant. The SGA ratio fell 0.2 percentage points year on year, to 33.8%.
As a result, operating profit decreased 6.5% year on year, to 20,916 million yen. The operating profit margin was 14.9%, falling 2.4
percentage points from a year ago. Ordinary profit declined 9.5% year on year, to 23,453 million yen, mainly due to a decrease inforeign exchange gains. Profit attributable to owners of parent decreased 12.5% year on year, to 16,482 million yen, partly due to theimpact of extraordinary losses associated with changes in the construction plan of the Traditional Chinese Medicine Research Center.
*1 five “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 five “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]
In the fiscal year under review, the Company was limiting shipments for 28 items starting in August 2022 as orders greatly exceeded
expectations due to the spread of COVID-19 and seasonal factors such as the extremely hot weather in July and August. The Company
is gradually ending limits on shipments by putting in place a system for increasing production increase and adjusting production plans.
As of May 9, shipments were limited for 24 items, and the Company plans to gradually cease limiting shipments from June. The
Company will bring all employees together in a unified effort to develop and maintain its production system to ensure a stable supplyof prescriptions.
3(2) Overview of financial position during the fiscal year ended March 31, 2023
The financial position at the end of the fiscal year under review was as follows.
Total assets at the end of the fiscal year under review increased 45,831 million yen from the end of the previous fiscal year to 396,813
million yen. Current assets increased 38,900 million yen from the end of the previous fiscal year, mainly due to a rise in inventories.
Non-current assets increased 6,931 million yen from the end of the previous fiscal year, mainly due to an increase in buildings andstructures, offsetting a decrease in investment securities.
Total liabilities were 124,566 million yen, an increase of 31,695 million yen from the end of the previous fiscal year. Current liabilities
increased 1,329 million yen from the end of the previous fiscal year, mainly due to an increase in accounts payable - trade. Noncurrent liabilities grew 30,365 million yen from the end of the previous fiscal year, mainly reflecting an increase in bonds payable.
Net assets totaled 272,246 million yen, an increase of 14,136 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 10,915 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 1,360 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign
currency translation adjustment. Non-controlling interests increased 1,860 million yen from the end of the previous fiscal year.
As a result, the equity ratio fell 4.8 percentage points, to 63.5%.
(3) Overview of cash flow during the fiscal year ended March 31, 2023
Cash flows in the fiscal year under review were as follows:
For the fiscal year under review, cash provided by operating activities was 16,452 million yen, cash used in investing activities was
15,493 million yen and cash provided in financing activities was 24,423 million yen.
Cash provided by operating activities was 16,452 million yen. Looking at its breakdown, a major cash inflow item was profit before
income taxes of 23,018 million yen, while a major cash outflow item was income taxes paid of 6,134 million yen. Compared to theprevious fiscal year, cash inflow decreased 4,861 million yen.
Cash used in investing activities was 15,493 million yen. Looking at its breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 12,224 million yen. Compared to the previous fiscal year, cash outflow increased 6,382 million yen.
Cash provided in financing activities was 24,423 million yen. The mainly reflected 29,857 million yen provided by the issuance ofbonds. Compared to the previous fiscal year, cash provided increased 32,604 million yen.
As a result, cash and cash equivalents increased 27,194 million yen from the end of the previous fiscal year, to 94,730 million yen.
(4) Future outlook
In view of the growth of prescription Kampo products in Japan as well as China business, the net sales forecast for the fiscal year
ending March 31, 2024 is 150,500 million yen. Net sales from overseas business are expected to account for 17,200 million yen of thistotal. Profit forecasts are operating profit of 18,000 million yen (down 13.9%), ordinary profit of 18,600 million yen (down 20.7%),
and profit attributable to owners of parent of 13,000 million yen (down 21.1%), due to the impact of exchange rates (depreciation of
the yen), surges in energy costs and raw and other materials and rising procurement prices of certain crude drugs.
In Japan, the Company will move forward with a hybrid promotion that combines MR activities and e-promotion, aiming to realize a
medical setting where the majority of physicians prescribe 10 or more prescriptions of ethical Kampo formulation based on Kampo
medicine. The Company will strive to continue expanding the Kampo market by pursuing initiatives to enable each healthcare
professional to obtain and use the information they seek from the most suitable channels and at the most appropriate times.
In China business, the Company concluded an equity transfer agreement in April 2023 to acquire 100% of the equity interests of
Shaanxi Unisplendour Life Care Pharmaceutical Co., Ltd. for the purpose of expanding the traditional Chinese medicinal productbusiness in the formulation platforms alongside the expansion of sales of crude drugs and crude drug pieces for decoction using its
crude drug platforms. Unisplendour has 147 licenses for traditional Chinese medicinal products, including a number of classicprescriptions. These classic prescriptions are similar to Tsumura’s Kampo products. Tsumura will further improve the quality of classicprescriptions held by Unisplendour, the acquired company, by leveraging its expertise and experience in quality control, evidence
development, manufacturing technologies, etc. to establish Tsumura’s brand as a traditional Chinese medicinal product company andbusiness expansion.
Net sales
Fiscal year ended March
31, 2024〔Year-on-year change
after adjustment〕

Operating profit

Ordinary profit(Million yen)
Profit attributable toowners of parent

150,500

18,00018,60013,0007.5%（13.9％)（20.7％)（21.1％)

4

2. Basic idea of the selection of accounting standards
Tsumura and its group companies plan to prepare consolidated financial statements based on the Japanese standards for the time being.
The companies will consider adopting the IFRS in an appropriate manner, taking into account conditions in Japan and overseas.

5

3. Consolidated Financial Statements and Key Notes(1) 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
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Construction in progress
Other
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of March 31, 2023

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

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

89,56370,18913,288
9,051
3,488
602
(96,143)
90,04091,197
71,81014,3499,051
11,323725(105,042)
93,4158,513
3,814
12,328

8,480
6,166
14,647

10,184
2,842
660
5,504
(0)
19,192
121,561
350,981

11,160
2,518
1,844
4,905
(0)
20,429128,492
396,813(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Provision for share awards for directors (and otherofficers)
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-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

7

As of March 31, 2023

13,676
10,313
7,222
3,271
11,39245,875

16,443
10,313
7,585
3,233
9,628
47,20530,000
9,377
287
1,179
55

60,000
9,377
11
1,179
59

－

111

6,096
46,99692,871

6,623
77,361
124,566

30,142
13,732
182,929(682)
226,12130,142
13,739194,224(1,068)237,037

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

2,647
29
2,673
10,455(796)
15,00820,199272,246
396,813

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
FY 3/2022(From April 1, 2021
to March 31, 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
Gain on capital reduction with compensation ofsubsidiaries and affiliates
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on COVID19
Total extraordinary losses
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

8

FY 3/2023(From April 1, 2022
to March 31, 2023)

129,546
63,081
66,46544,08822,376140,043
71,762
68,28147,365
20,916

443
248
2,474
579
3,745

531
265
1,508
642
2,949

173
－
44
218
25,904

256
142
13
412
23,453

26

5

－

463

114
140

－
469

24
457
－
－
481
25,563
6,268
(101)
6,167
19,395559
18,836

5
40
597
259
903
23,018
6,121
(489)
5,632
17,386904
16,482

Consolidated Statements of Comprehensive Income(Millions of yen)
FY 3/2022(From April 1, 2021
to March 31, 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 of parent
Comprehensive income attributable to non-controllinginterests

9

FY 3/2023(From April 1, 2022
to March 31, 2023)
19,395

17,386(856)
786
10,366131

322(1,990)
4,623
(516)

64

(69)

10,49429,8892,370
19,757

26,94017,842

2,949

1,914

(3) Consolidated Statements of Changes in Equity
FY 3/2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

30,142Retained earnings

13,789Total shareholders'equityTreasury shares

168,989

212,241(679)

Changes during period
Dividends of surplus(4,896)(4,896)

Profit attributable to owners ofparent18,836

18,836

Purchase of treasury shares(3)

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders' equity

(3)

(56)

Total changes during period
Balance at end of period

(56)

－

(56)

13,940(3)

13,88030,142

13,732

182,929(682)

226,121

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

Total net
assets

3,180

1,233

2,673

(1,130)

(412)

5,544

15,382

233,169

Changes during period
Dividends of surplus(4,896)

Profit attributable to owners ofparent18,836

Purchase of treasury shares
Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders' equity

(3)
(56)
(856)

786

－

8,041

131

8,103

2,956

11,060Total changes during period

(856)

786

－

8,041

131

8,103

2,956

24,940

Balance at end of period

2,324

2,020

2,673

6,911

(280)

13,64818,339258,10910

FY 3/2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

30,142Retained earnings

13,732

182,929

Total shareholders'equityTreasury shares

226,121(682)

Changes during period
Dividends of surplus(4,897)(4,897)

Profit attributable to owners ofparent16,482

16,482

Change in scope of consolidation

(290)

(290)

Purchase of treasury shares
Disposal of treasury shares

(446)

(446)

60

67

6

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period－

611,294(385)

10,91530,142

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

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehensi
ve income

Noncontrollinginterests

Total net
assets

2,324

2,020

2,673

6,911

(280)

13,64818,339258,109

Changes during period
Dividends of surplus(4,897)

Profit attributable to owners ofparent16,482

Change in scope of consolidation(290)

Purchase of treasury shares(446)

Disposal of treasury shares

67

Net changes in items other thanshareholders' equity322(1,990)

－

3,544

(516)

1,360

1,860

3,220

Total changes during period

322(1,990)

－

3,544

(516)

1,360

1,860

14,136

Balance at end of period

2,647

29

2,673

10,455(796)

15,00820,199272,24611

(4) Consolidated Statements of Cash Flows(Millions of yen)
FY 3/2022(From April 1, 2021
to March 31, 2022)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
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
Gain on capital reduction with compensation ofsubsidiaries and affiliates
Decrease (increase) in trade receivables
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
Increase (decrease) in retirement benefit liability
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid

FY 3/2023(From April 1, 2022
to March 31, 2023)
25,563
8,743
－
446
60
(692)
173
－

23,018
10,101
597
511
49
(797)
256
142

455

39

－

(463)

(5,515)(5,496)
3,789(2,939)(5,960)
2,147

(114)

－

(411)
5
909
27,915682(209)(7,074)(430)
15(4,245)22,047772(232)(6,134)

21,314

16,452

1,748(10,174)66(413)(15,516)1(12,224)
22(2,484)(10,285)

15,657

9,775

－

380

－
(0)
1
(479)
(9,111)

(391)
(177)
177
(287)
(15,493)

(171)
9,377
(12,337)－(3)(4,896)
(87)
(61)

－
－
－
29,857(446)(4,896)(70)(19)

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(8,181)
3,845
7,867
59,66824,423
1,811
27,19467,536

Cash and cash equivalents at end of period

67,536

94,730Net 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 and longterm investment securities
Proceeds capital reduction with compensation ofsubsidiaries and affiliates
Purchase of investments in capital of subsidiaries
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

12(5) Notes to the Consolidated Financial Statements(Notes on premise of a going concern)
There are no applicable matters.
(Notes to consolidated statements of income)Impairment losses
Previous fiscal year (From April 1, 2021 to March 31, 2022)
No relevant items.
Fiscal year under review (From April 1, 2022 to March 31, 2023)
The Group posted an impairment loss in the asset groups below.
Location
Shenzhen, Guangdong, China

Use

Type

Analysis and research

Construction in progress

The Group groups its business assets in consideration of the nature of products and similarity of markets, and individually groups idle
assets not directly used for business and assets to be disposed of.
Shenzhen Tsumura Medicine Co., Ltd. took the lead in constructing the Traditional Chinese Medicine Research Center and was
preparing to start construction, but due to a change in the plan as a result of a reexamination to build an efficient research system, its
book value was reduced to the recoverable amount, and impairment losses were posted as extraordinary losses in the fiscal year underreview.
Impairment losses for the fiscal year under review were 597 million yen, which consisted of 597 million yen for construction inprogress.
The recoverable amount is measured by value in use, which is evaluated as zero because no future cash flows are expected.
(Segment information)
Segment information is not shown because the Group’s operations are limited to the single segment of pharmaceutical products.

13

(Per share information)
FY 3/2022(From April 1, 2021
to March 31, 2022)
Shareholders’ equity per share
Basic earnings per share

FY 3/2023(From April 1, 2022
to March 31, 2023)

3,133.97yen
246.21yen

3,299.42yen
215.63yen(Notes) 1. Diluted earnings per share is not stated because there are no residual securities.
2. Basis of calculation(1) The basis of calculation for shareholders’ equity per share is as follows.
As of March 31, 2022

As of March 31, 2023

Total net assets (million yen)

258,109272,246

Deduction from total net assets (million yen)

18,33920,199〔18,339〕〔20,199〕

Net assets related to common stock at the end of the fiscal
year (million yen)

239,770

252,046

Number of shares of common stock at the end of the
fiscal year used for calculation of shareholders’ equity pershare (thousand shares)

76,50776,391〔Non-controlling interests〕(2) The basis of calculation for basic earnings per share per share is as follows.
FY 3/2022(From April 1, 2021
to March 31, 2022)
Profit attributable to owners of parent (million yen)

FY 3/2023(From April 1, 2022
to March 31, 2023)

18,836

16,482

Amount not attributable to common stockholders (million
yen)

－

－

Profit attributable to owners of parent related to common
stock (million yen)

18,836

16,482Average number of shares of common stock during the
fiscal year under review (thousand shares)

76,50776,437

3. In calculating net assets per share, the shares of the Company’s stock held by the Board Incentive Plan (BIP) Trust areincluded in treasury shares that are deducted from the total number of shares outstanding at the end of the period (137,800
shares for the current consolidated fiscal year, none for the previous fiscal year). Also, in calculating basic earnings per
share, the shares of the Company’s stock held by the BIP Trust are included in treasury shares that are deducted in thecalculation of the average number of shares outstanding during the period (84,800 shares for the current consolidated
fiscal year, none for the previous fiscal year).
(Significant subsequent events)
At a Board meeting held on March 24, 2023, the Board of Directors passed a resolution to conclude an equity interest transfer
agreement for the acquisition of a 100% equity interest in Shaanxi Unisplendour Life Care Pharmaceutical Co., Ltd. (hereinafter“Unisplendour”) by Ping An Tsumura Inc. (hereinafter, “Ping An Tsumura”), a group company of Tsumura in China, and the Company
concluded the agreement on April 13, 2023.
1. Outline of the business combination(1) Name of the acquired company and its business
Name of the acquired company Shaanxi Unisplendour Life Care Pharmaceutical Co., Ltd. and its two subsidiaries
Business description Production and contract production of pharmaceuticals, sale of pharmaceuticals, and other businesses related
to such fields of operation(2) Main reason for the business combination
Unisplendour Chenji has 147 licenses for traditional Chinese medicinal products, including a number of classic prescriptions. These
classic prescriptions are similar to Tsumura’s Kampo products. Tsumura will further improve the quality of classic prescriptions heldby Ziguang Chenji, the acquired company, by leveraging its expertise and experience in quality control, evidence development,
manufacturing technologies, etc., with the aim of establishing Tsumura’s brand as a traditional Chinese medicinal product company
and expanding business.
14(3) Date of acquisition of equity interests
April 23, 2023
(4) Legal form of the business combination
Acquisition of equity interests in consideration for cash(5) Name of the combined entity
No change(6) Ratio of equity interests acquired
100%(7) Main reason for the decision to acquire the company
Acquisition of equity interests in consideration for cash and deposits
2. Costs of the acquisition of acquired company and breakdown by type of consideration
Consideration for acquisition cash and deposits 254 RMB million(approximately 4,854 million yen)
Acquisition cost
254 RMB million(approximately 4,854 million yen)
(Note) Foreign currency-denominated amounts are converted into yen at the rate of 1 RMB = 19.05 yen.
3. Details and amount of major acquisition-related costs
They are not determined yet at this point.
4. Goodwill arising from the business combination, reason for the goodwill, and method and period of amortization
They are not determined yet at this point.
5. Amounts and breakdown of assets and liabilities acquired on the business combination date
They are not determined yet at this point.

15