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.

August 3, 2022

Consolidated Financial Results
for the First 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: August 4, 2022
Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results: Yes
Holding of financial results briefing: Yes (for institutional investors and securities analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated business results for the first quarter of the term ending March 31, 2023 (from April 1, 2022
to June 30, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Three-month period
endedOperating profit

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2022

34,417

8.3

6,353

3.3

8,665

19.6

6,632

23.1

June 30, 2021

31,771

11.9

6,152

8.7

7,247

27.7

5,389

34.2

Note: Comprehensive income

Three-month period ended June 30, 2022:
Three-month period ended June 30, 2021:

Basic earnings
per share
Three-month period
ended¥13,453 million¥9,263 million[ 45.2 %][266.2 %]Diluted earnings
per share
Yen

Yen

June 30, 2022

86.70

－

June 30, 2021

70.44

－

(2) Consolidated financial condition
Total assets
As of

Net assets

Millions of yen

Equity-to-asset ratio

Millions of yen%

June 30, 2022

362,580

269,068

68.8

March 31, 2022

350,981258,109

68.3

Reference:

EquityAs of June 30, 2022:
As of March 31, 2022:¥249,287 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－

Fiscal year-end

Total

Yen

Yen

32.00

－

32.00

64.00

32.00

－

32.00

64.00

－

Fiscal year ending
March 31, 2023
(Forecast)

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)(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

68,900138,500

%

8.6
6.9

Million yen

10,70020,800% Million yen

(8.4)
(7.0)

%

Million yen

14,000 4.4
21,200 (18.2)

9,600
15,000Note: Revisions to projections of consolidated business results published most recently: Yes

%

(3.7)
(20.4)

Yen

125.48196.06

* 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 June 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 June 30, 2022

251,343 shares

As of March 31, 2022

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

76,507,019 shares

Three-month period ended June 30, 2021

76,507,898 shares* 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 ” on page 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 First Quarter Consolidated Accumulative Term···········································································

7

Quarterly Consolidated Statements of Comprehensive Income
For the First 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 the first quarter under review were as follows:[Consolidated business results]
FY 3/2022 1Q(Million yen)
YoY Change
Percent Change

FY 3/2023 1Q
31,771

34,417+2,645+8.3％

Domestic sales

29,51331,562+2,048+6.9％

Overseas sales

2,257

2,855

+597
+26.5％

Cost of sales

15,29816,462+1,164+7.6％

Selling, general andadministrative expenses

10,321

11,601+1,280+12.4％

Operating profit

6,152

6,353

+201
+3.3％

Ordinary profit

7,247

8,665

+1,418+19.6％

Profit attributable to owners ofparent

5,389

6,632

+1,243+23.1％Net sales

Net sales increased 8.3% year on year, to 34,417 million yen.
Domestic net sales increased 6.9% year on year, to 31,562 million yen. Looking at sales of 129 prescription Kampo preparations, the
COVID-19 pandemic continued to impact business with the increase in the number of people who avoided seeing doctors. The
Company expanded e-promotion, mainly on the Tsumura Medical Website. Meanwhile, growth in prescriptions for symptoms such as
as anxiety/insomnia and dizziness continued. As a result, sales increased 6.7% year on year. Total sales of “Drug fostering” program
formulations*1 grew 3.9% and sales of Daikenchuto, a mainstay item for the Company, increased 3.1% year on year. The Company
renewed its product lineup by additionally including Ninjin'yoeito and kamikihito as new growth drivers in Growing formulations*2
aiming at registration in clinical practice guidelines through the establishment of evidence. Total sales of Growing formulations rose
9.8% year on year.
Sales of“Drug fostering” program formulations and“Growing” formulations (unit: millions of yen)
Rankingin salesNo. / Product Name

FY 3/2022
1Q

FY 3/2023
1Q

YoY Change/
Percent Change

1100

Daikenchuto

2,430

2,505

+74

+3.1％

“Drug

2

54

Yokukansan

1,872

1,933

+60

+3.2％

fostering”
program4

43

Rikkunshito

1,770

1,860

+90

+5.1％

formulations

8

107

Goshajinkigan

888

932

+43

+4.9％

23

14

Hangeshashinto

345

359

+13

+3.9％

7,308

7,591

+282

+3.9％

Total of "Drug Fostering" Program formulations

Growing
formulations:3

41

Hochuekkito

1,818

1,881

+63

+3.5％

5

17

Goreisan

1,297

1,542

+244

+18.8％

624

Kamishoyosan

1,205

1,296

+91

+7.6％

17

108

Ninjin`yoeito

484

507

+23

+4.9％

18

137

Kamikihito

411

501

+90

+22.0％

5,217

5,730

+512

+9.8％

15,852

16,956+1,104+7.0％

28,37730,277+1,900+6.7％

Total of Growing formulations
Total of 119 prescriptions excluding “Drug fostering”
program formulations and Growing formulations
Total of 129 prescription Kampo products
2

In addition, sales of OTC Kampo formulations in Japan increased 18.5% year on year, to 914 million yen, reflecting a rise in the numberof stores handling the products.
Overseas net sales were 2,855 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 7.6% year on year, to 16,462 million yen, reflecting the growth in net sales. The cost-to-sales ratio fell 0.4
percentage points year on year, to 47.8%.
Selling, general and administrative expenses increased 12.4% year on year, to 11,601 million yen. The increase mainly reflected anincrease in R&D expenses and the posting of temporary expenses for the operation of the Tianjin Plant. The SGA ratio rose 1.2 percentage
points year on year, to 33.7%.
As a result, operating profit increased 3.3% year on year, to 6,353 million yen. The operating profit margin was 18.5%, falling 0.9
percentage points from a year ago. Ordinary profit rose 19.6% year on year, to 8,665 million yen, thanks to the impact of foreignexchange gains, and profit attributable to owners of parent increased 23.1% year on year, to 6,632 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
Initiatives in response to COVID-19 pandemic and impact on performance
There was no impact on product supply either in Japan or overseas in the first three months of the fiscal year under review. Regarding
the impact on business performance, certain business activities were affected, reflecting the implementation of alternative production
at plants located in Japan as a result of the suspension of operations at the Shanghai Plant due to the lockdown and restrictions on
visits to medical institutions to provide information, among other factors.
Although the business environment is expected to remain uncertain, the Company will continue to observe changes in theenvironment, maintain production levels and secure distribution while simultaneously paying close attention to infection prevention.
In doing so, it will continue to take the necessary steps to facilitate the supply of products and the gathering and provision of
information about the products.
(2) Description of financial condition
The financial position at the end of the first quarter under review was as follows:
Total assets at the end of the first quarter increased 11,598 million yen from the end of the previous fiscal year, to 362,580 million yen.
Current assets increased 8,428 million yen from the end of the previous fiscal year, mainly due to a rise in inventories. Non-current
assets increased 3,170 million yen from the end of the previous fiscal year, mainly due to an increase in property, plant and equipment.
Total liabilities were 93,512 million yen, an increase of 640 million yen from the end of the previous fiscal year. Current liabilities
increased 923 million yen from the end of the previous fiscal year, mainly due to an increase in notes and accounts payable - trade.
Non-current liabilities decreased 283 million yen from the end of the previous fiscal year.
Net assets totaled 269,068 million yen, an increase of 10,958 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 4,184 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 5,332 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign
currency translation adjustment. Non-controlling interests increased 1,441 million yen from the end of the previous fiscal year.
As a result, the equity ratio rose 0.5 percentage points, to 68.8%.
Cash flows in the first quarter under review were as follows:
During the first quarter under review, cash provided by operating activities was 4,785 million yen, cash used in investing activities was
4,145 million yen, and cash used in financing activities was 2,418 million yen.
Cash provided by operating activities was 4,785 million yen. Looking at its breakdown, a major cash inflow item was profit before
income taxes of 8,661 million yen, while a major cash outflow item was income taxes paid of 2,948 million yen. Compared to the first3

quarters of the previous fiscal year, cash inflow increased 1,424 million yen.
Cash used in investing activities was 4,145 million yen. Looking at its breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 3,763 million yen. Compared to a year ago, cash outflow rose 1,044 million yen.
Cash used in financing activities was 2,418 million yen. Looking at its breakdown, a major cash outflow item was dividends paid of
2,401 million yen. Compared to a year ago, cash outflow rose 47 million yen.
As a result, cash and cash equivalents increased 486 million yen from the end of the previous fiscal year, to 68,022 million yen.
(3) Description of projections of consolidated business results
In light of recent business results, the Company has revised its business results projections released on May 10, 2022 as follows.
1.Consolidated business results for the Second quarter of the term ending March 31, 2023
(from April 1, 2022 to September 30, 2022)
Million yen

OperatingprofitMillion yen

Million yen

Profit attributable toowners of parent
Million yen

67,00068,9001,900

9,800
10,700900

10,00014,000
4,000

7,400
9,600
2,200

2.8％

9.2％

40.0％

29.7％

63,416

11,684

13,409

9,965

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

Ordinary profit

Profit per share
Yen

96.72
125.48（Reference) Results forprevious second quarter（ended September 30, 2021)

130.26

2. Consolidated business results for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
The projections of business results published on May 10, 2022 remain unchanged.
3.Reason of revision
With respect to consolidated results for the first six months of the fiscal year ending March 31, 2023, the foreign exchange gain of
2,800 million yen is expected to be posted as non-operating income due to the weakening of the yen. As a result, with ordinary profit
and profit attributable to owners of parent significantly exceeding initial expectations, the Company has decided to revise its results
projections.
The Company also reviewed its full-year projections carefully in conjunction with full-year consolidated financial results forecasts.
However, in consideration of the difficulty of reasonable calculations at present due to the possibility of significant fluctuations inforeign exchange gains or losses, the Company has decided not to revise the initial projections.

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 June 30, 2022

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

68,04457,297
10,36813,054
72,48016,729(126)
237,849

89,56396,621(96,143)
90,04091,141
99,826(99,134)
91,8338,513
3,814
12,328

8,961
3,994
12,956

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

10,530
2,950
6,459
(0)
19,941
124,731362,580

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

14,640
10,313
2,729
19,116
46,79930,0009,377
55

30,000
9,377
55

－

27

7,563
46,99692,871

7,253
46,71393,512

(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 June 30, 2022

30,142
13,732
182,929(682)
226,12130,142
13,732
187,114(682)
230,306

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

2,563
2,531
2,673
11,492(279)
18,98019,781
269,068
362,580

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income / For the First 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
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Three-month period ended
June 30,2021(From April 1, 2021
to June 30, 2021)
31,771
15,29816,473
10,321
6,152(Millions of yen)Three-month period ended
June 30,2022(From April 1, 2022
to June 30, 2022)
34,417
16,462
17,954
11,601
6,353

85
126
836
96
1,144

115
134
1,999
102
2,351

44
4
49
7,247

34
5
39
8,665

13
13

1
1

107
107
7,153
1,831
5,321
(67)
5,389

6
6
8,661
1,911
6,750
117
6,632

7

Quarterly Consolidated Statements of Comprehensive Income / For the First Quarter Consolidated Accumulative Term
(Millions of yen)Three-month period ended
Three-month period ended
June 30,2021
June 30,2022(From April 1, 2021
(From April 1, 2022
to June 30, 2021)
to June 30, 2022)
Profit5,321
6,750
Other comprehensive income
Valuation difference on available-for-sale securities
(915)
239
Deferred gains or losses on hedges
5511
Foreign currency translation adjustment
4,817
5,916
Remeasurements of defined benefit plans, net of tax
50
Share of other comprehensive income of entities
29
34
accounted for using equity method
Total other comprehensive income
3,941
6,703
Comprehensive income
9,263
13,453Comprehensive income attributable toComprehensive income attributable to owners of parent
8,284
11,964Comprehensive income attributable to non-controlling
979
1,488
interests8

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

Three-month period ended
June 30,2021(From April 1, 2021
to June 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
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
Dividends paid
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

9

7,153
2,155
107
21
(212)
44

8,661
2,456
119
(4)
(249)
34

93

4

(2,864)
(923)
1,025
(104)
0
441
6,940
213
(72)
(3,720)3,360(1,879)
746
146
(108)
2
(2,351)
7,576
206
(49)
(2,948)4,785

26(2,957)
13
(19)

(6)
(3,763)1(134)(3,275)

(734)

3,274

732

－
0
(163)
(3,101)

(164)
0
(77)
(4,145)(2,354)(17)(2,371)
1,722(390)
59,66859,278(2,401)(16)(2,418)2,266
486
67,53668,022

(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