May 14, 2009
NEWS RELEASE
Name of Listed Company:
TSUMURA & Co.
Code:4540
Head Office Address: 2-17-11 Akasaka, Minato-ku, Tokyo
Contact: Position: Head of Corporate Communications Dept.
Name: Terukazu Kato
Telephone:81-3-6361-7100

Tsumura Announces Medium-Term Management Plan for FY 2009 to FY 2011
(Consolidated)
Tsumura & Co. (Headquarters: Tokyo, President: Junichi Yoshii) is pleased to announce that a meeting of
the Board of Directors held on May 14, 2009 has adopted a medium-term management plan for the threeyears starting fiscal 2009 (ending March 31, 2010). Details are as follows:
1. Background to Development of the Medium-Term Management Plan
Tsumura developed and announced a medium-term management plan for the three years from fiscal 2007
in May 2007. In the management plan, in which Tsumura positions FY 2007 as the first year of
specializing in the kampo and botanicals business, the Company has aimed to achieve 7% growth interms of sales volume of prescription kampo preparations and has taken the following actions:・Establishing kampo medicine
・Promoting Drug Fostering and Evolution of Kampo
・Internationalizing kampo
・Developing production systems
・Establishing a botanical raw materials traceability system
・Creating an open company
Through these initiatives, sales of prescription kampo preparations grew more than 10% in volume terms
in the most recent period.
Meanwhile, Tsumura carried out the following initiatives:
・Transferred shares in Pacific Marketing Alliance, Inc., a subsidiary in the United States (November2007)
・Transferred shares in Tsumura Lifescience Co., Ltd. (August 2008)
・Transferred the approval of the production and marketing of ASTAT, an ethical, external-use
anti-fungal drug (February 2009)
Considering the situation, Tsumura has developed a new medium-term management plan for developing
a new stage specializing in the kampo and botanicals business.
The main points of the new medium-term management plan are as follows:(1) Sales and profits
We aim to post consolidated sales of ¥104.3 billion and an operating profit of ¥25.4 billion for fiscal 2011
based on the assumption that sales of prescription kampo preparations will grow 10% in volume terms.
(2) Important management indicator
From the perspective of the improvement of capital efficiency and rate of return, we continue to view
return on assets (ROA) as an important management indicator. We aim to record an ROA of 16.7% infiscal 2011.
(3) Capital investment
With a rise in demand for prescription kampo preparations, we plan to invest a total of ¥26 billion overthe three years, primarily to enhance the capacity of three plants in Shizuoka, Ibaraki, and Shanghai tomaintain a stable supply system.
(4) Dividend
We plan to pay an annual dividend per share of ¥40 (interim dividend of ¥20 and year-end dividend of¥20) for FY 2009, an increase of ¥6 from FY 2008. We aim to continue to increase dividends,
considering situations including investments.
2. Numerical Targets in the Medium-Term Management Plan for FY 2009 to FY 2011
FY 2008
performance

FY 2009
Plan(Million Yen)
FY 2011

FY 2010

Year onyear

Plan

Year onyear

Year onyearPlan

Net sales

90,01692,3002.5%

96,9005.0%

104,300

7.6%

Operating profit
RecurringincomeNet income

16,483

19,10015.9%

20,7008.4%

25,40022.7%

16,622

19,30016.1%

20,9008.3%

25,70023.0%

10,777

11,3004.9%

12,100

7.1%

15,000

24.0%

R&D expenses

3,958

3,700

△6.5%

3,800

2.7%

3,900

2.6%

CapitalInvestment

5,479

6,900

25.9%

9,500

37.7%

9,600

1.1%

2008 performance
ROA (Return on assets)

12.6%

2009 plan
14.5%

2010 plan2011 plan

14.7%

16.7%

3. Action Targets in the Medium-Term Management Plan
(1) Establish Kampo medicine
We will continue to support improved Kampo education at 80 medical schools in Japan and theestablishment of outpatient Kampo clinics in medical school hospitals.
(2) Promote Drug Fostering and Evolution of Kampo
Examining the recent structure of diseases, we will focus on disorders that are difficult to treat withmodern drugs but for which kampo preparations have shown specific results in areas where medical
needs are heavy and will continue to promote Drug Fostering and Evolution of Kampo to establish
evidence. We will also seek new Drug Fostering and Evolution of Kampo prescriptions.
(3) Internationalize Kampo
In relation to the promotion of Drug Fostering and Evolution of Kampo, we will develop a system toconnect latest basic and clinical data in Japan to clinical trial procedures in the United States. We willencourage information exchange between leading doctors in Japan and the United States and will create amore efficient development system to develop TU-100 Daikenchuto.
(4) Increase production capacity and enhance the quality control system
We will respond to increasing demand for prescription kampo preparations by updating facilities,
including an expansion of our extract powder production building, construction of a granulating building,and introduction of additional packaging equipment, and encouraging efficient personnel assignment. In
quality control terms, we will seek to standardize and improve efficiency in inspections primarily, using
the analysis center.

(5) Secure the stable supply of safer botanical raw materials
We will continue to take steps to secure a stable supply of safer and more credible botanical raw materials,
by developing a traceability system and standardizing cultivation methods and cultivation management at
production areas in Japan and overseas.
*We ensure that our kampo preparations meet the safety standard for Pharmaceutical Affairs Act. For
patients to have full confidence that our kampo preparations are safe, we take steps to ensure the safetyand quality of botanical raw materials.
(6) Create an open company
We will continue efforts to build a management system that will improve corporate value and that willclearly disclose our position through communication with our stakeholders.
These are target activities in the medium-term management plan. Through the kampo and botanicals
business, we aim to become a people-friendly company that will contribute to society and people.
(For reference)
Progress of the Medium-Term Management Plan Announced in May 2007 (Consolidated, MillionYen)
FY 2007
PlanNet sales
OperatingprofitRecurringincomeNetincome
ROA

FY 2008

Performance

Difference

95,00094,799△201

16,00015,82015,500

Performance

Difference

99,00090,016△8,984

104,500△180

17,000

16,483△517

20,00015,258△242

16,50016,622

122

19,600

8,800

9,139

339

9,500

10,777

1,277

11,500

11.3%

11.4%

11.9%

12.6%

−Plan

FY2009

−Plan

13.5%

●The figures in the plan columns are all figures announced in May 2007.
●The plan for FY2008 was revised in May, August, and November in 2008, and in February 2009.
●The difference in net sales for FY2008 reflects the transfer of shares in Tsumura Lifescience Co., Ltd. inAugust 2008 and the exclusion of the company from the scope of consolidation from the second quarterof FY2008.
Comparison Between the Plan for FY2009 in the Previous Medium-Term Plan and the New
Medium-Term Plan (Consolidated, Million Yen)

Previous medium-term
management plan
104,500

FY 2009
New medium-term
management plan
92,300Operating profit

20,00019,100△900

Recurring income

19,60019,300△300

Net income

11,50011,300

△200

ROA

13.5%

14.5%

Net sales

Difference△12,200−●The net sales of the previous medium-term management plan include sales of about 18 billion yen ofPacific Marketing Alliance, Inc., Tsumura Lifescience Co., Ltd., and the ethical, external-use anti-fungal
drug ASTAT.