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.

February 6, 2024

Consolidated Financial Results
for the Third Quarter of the Term Ending March 31, 2024
(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 to file quarterly securities report: February 7, 2024
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 Third quarter of the term ending March 31, 2024 (from April 1,
2023 to December 31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Nine-month period
endedOperating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2023

115,826

8.2

19,1438.0

22,400

4.6

16,151

1.7

December 31, 2022

107,076

8.8

17,723(5.9)

21,4101.6

15,875

3.2

Note: Comprehensive income

Nine-month period ended December 31, 2023:
Nine-month period ended December 31, 2022:

Basic earnings
per share
Nine-month period
ended¥29,166 million¥27,161 million[7.4 %][27.6 %]

Diluted earnings
per share
Yen

Yen

December 31, 2023

212.45－

December 31, 2022

207.65－(2) Consolidated financial condition
Total assets
As of

Net assets

Millions of yen

Equity-to-asset ratio

Millions of yen%

December 31, 2023

418,272

297,127

64.8

March 31, 2023

396,813272,246

63.5

Reference:

EquityAs of December 31, 2023:
As of March 31, 2023:¥271,022 million¥252,046 million

2. Dividends
Annual dividends per shareFirst quarter-end

Third quarter-end

Yen
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

Third quarter-end

Yen

－

32.00

－

35.00

Fiscal year ending
March 31, 2024
(Forecast)Fiscal year-end

Yen

Total

Yen

Yen

－

32.00

64.00

－

35.00

70.00

Note: Revisions to dividends projection published most recently: No
3. Projections of consolidated business results for the term ending March 31, 2024
(From April 1, 2023 to March 31, 2024)
Net sales
Million yen

Full-year

152,000(Figures in percentage show the rate of increase or decrease from the previous fiscal year)
Profit attributable toOperating profit
Ordinary profit
Profit per shareowners of parent%

8.5

Million yen

19,500% Million yen

(6.8)

%

22,400 (4.5)

Million yen

16,200

%

(1.7)

Yen

213.15

Note: Revisions to projections of consolidated business results published most recently: Yes
Regarding the revision to the consolidated business performance forecast, please refer to “1. Qualitative information on quarterly results,(3) Forward-looking statements such as consolidated business performance forecasts” on page 5 of the attachment.

* 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 December 31, 2023

76,758,362 shares

As of March 31, 2023

76,758,362 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023

830,841shares

As of March 31, 2023

367,332shares(iii) Average number of shares outstanding during the period
Nine-month period ended December 31, 2023

76,024,654shares

Nine-month period ended December 31, 2022

76,451,360shares

Note: The Company introduced the BIP (Board Incentive Plan) trust and ESOP (Employee Stock Ownership Plan)trust. As a result, the shares of the Company’s stock held by the trust are included in treasury shares that are deductedin 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.
Qualitative information on quarterly results (3) Description of projections of consolidated business results” onpage 5 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 ·····································································································

4(3) Description of projections of consolidated business results ········································································

5

2. Quarterly Consolidated Financial Statements and Key Notes ··········································································

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

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

8

Quarterly Consolidated Statements of Income
For the Third Quarter Consolidated Accumulative Term ·········································································

8

Quarterly Consolidated Statements of Comprehensive Income
For the Third Quarter Consolidated Accumulative Term ·········································································

9(3) Quarterly Consolidated Statements of Cash Flows ·················································································

10(4) Notes to the Consolidated Financial Statements ····················································································

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

11(Notes on case of extreme change in shareholder's equity amount) ····························································

11(Application of specific accounting treatment to the preparation of quarterly financial statements) ······················

11(Significant subsequent events)·······································································································

111

1. Qualitative information on quarterly results(1) Description of operating results
Consolidated business results for the third quarter under review were as follows:[Consolidated business results](Million yen)
FY 3/2023 3Q

YoY Change
Percent Change

FY 3/2024 3Q

107,076

115,826＋8,749＋8.2％

Domestic business

96,355

101,929＋5,574＋5.8％

China business

10,721

13,896＋3,175＋29.6％

Cost of sales

54,51760,767＋6,249＋11.5％

Selling, general and administrative
expenses

34,83635,915＋1,079＋3.1％

Operating profit

17,723

19,143＋1,420＋8.0％

Domestic business

17,882

19,427＋1,544＋8.6％

China business

(159)

(283)

(124)
－

Ordinary profit

21,41022,400＋990＋4.6％

Profit attributable to owners ofparent15,875

16,151＋275＋1.7％

Net sales

Net sales increased 8.2% year on year, to 115,826 million yen.
Net sales of domestic business increased 5.8% year on year, to 101,929 million yen. Sales of 129 prescription Kampo preparations
increased 6.2% year on year due to continuous growth of prescriptions in the cardiovascular area and ones for symptoms such as
anxiety/insomnia and dizziness. Total sales of drug fostering formulations*1 grew 2.1% year on year while total sales of growing
formulations*2 rose 6.2% year on year.

2

Sales of“Drug fostering” program formulations and“Growing” formulations (unit: millions of yen)
Rankingin sales“Drugfostering”
programformulations

No. / Product Name

FY 3/2023

FY 3/2024

YoY Change/

3Q

3Q

Percent Change

1100

Daikenchuto

7,482

7,590

＋107

＋1.4％

3

54

Yokukansan

5,687

5,826

＋138

＋2.4％

4

43

Rikkunshito

5,644

5,661

＋16

＋0.3％

9

107

Goshajinkigan

2,633

2,827

＋194

＋7.4％

24

14

Hangeshashinto

1,078

1,097

＋18

＋1.8％

22,52723,003

＋475

＋2.1％

Total of "Drug Fostering" Program formulations

Growing
formulations:241

Hochuekkito

6,096

6,185

＋88

＋1.5％

5

17

Goreisan

4,821

5,528

＋706

＋14.6％

624

Kamishoyosan

3,935

3,935

＋0

＋0.0％

17

137

Kamikihito

1,600

1,782

＋182

＋11.4％

18

108

Ninjin`yoeito

1,624

1,761

＋137

＋8.4％

18,07819,193＋1,114＋6.2％

51,33555,438＋4,102＋8.0％

91,941

97,635＋5,693＋6.2％

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

Sales of OTC Kampo formulations in the domestic business decreased 1.7% year on year to 3,302 million yen because formulations
related to cold symptoms and other products have remained in short supply. The stock shortages are being eliminated.
Net sales of business in China increased 29.6% year on year, to 13,896 million yen, due to significant growth in sales on crude drug
platforms (of Ping An Tsumura Pharmaceutical Co., Ltd., Shenzhen Tsumura Medicine Co., Ltd., etc.), which primarily include sales ofcrude drugs and crude drug pieces for decoction.
Cost of sales increased 11.5% year on year, to 60,767 million yen, mainly reflecting the growth in net sales, rising crude drug procurement
costs, high prices of raw and other materials and the weaker yen. The cost-to-sales ratio rose 1.6 percentage points year on year, to 52.5%.
Selling, general and administrative expenses increased 3.1% year on year, to 35,915 million yen. The increase mainly reflected increases
in R&D expenses and system expenses related to systems for the DX of the Kampo value chain. The SGA ratio fell 1.5 percentage points
year on year, to 31.0%.
As a result, operating profit increased 8.0% year on year, to 19,143 million yen. The operating profit margin was 16.5%, falling 0.1
percentage points from a year ago. Ordinary profit rose 4.6% year on year, to 22,400 million yen, and profit attributable to owners ofparent increased 1.7% year on year, to 16,151 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[Situation of limited shipments]
All limits to shipments of 129 prescription Kampo products were removed by July 31, 2023. Subsequently, however, the demand for
Kampo products increased more than expected due to increases in COVID-19 cases and flue cases and antitussives supply instability,
and shipments of certain prescription Kampo products were limited. The impact of this matter on the Group’s consolidated results will
be minor. The Company will gradually end limits on shipments by putting in place a system for increasing production increase andadjusting production plans.

3(2) Description of financial condition
The financial position at the end of the third quarter under review was as follows:
Total assets at the end of the third quarter increased 21,459 million yen from the end of the previous fiscal year, to 418,272 million
yen. Current assets increased 10,404 million yen from the end of the previous fiscal year, mainly due to a rise in notes and accounts
receivable-trade. Non-current assets increased 11,055 million yen from the end of the previous fiscal year, mainly due to increases inproperty, plant and equipment, intangible assets and investment securities.
Total liabilities were 121,144 million yen, down 3,422 million yen from the end of the previous fiscal year, primary owing to adecrease in notes and accounts payable - trade. Of the bonds included in non-current liabilities, those that became redeemable within
one year, amounting to 15,000 million yen, was reclassified under current liabilities.
Net assets totaled 297,127 million yen, an increase of 24,881 million yen from the end of the previous fiscal year. Shareholders’ equity
rose 9,710 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings. Accumulated othercomprehensive income climbed 9,265 million yen from the end of the previous fiscal year, chiefly due to an increase in foreign
currency translation adjustment. Non-controlling interests increased 5,905 million yen from the end of the previous fiscal year.
As a result, the equity ratio rose 1.3 percentage points, to 64.8%.
Cash flows in the first three quarters under review were as follows:
Cash and cash equivalents as of the end of the third quarter under review was 80,496 million yen, a decrease of 14,233 million yen
from the end of the previous fiscal year. Cash flows in the first nine months under review and year-on-year changes in cash flows wereas follows.
Cash used in operating activities was 798 million yen. Looking at a breakdown, a major cash inflow item was profit before income
taxes of 22,821million yen, while major cash outflow items were an increase in trade receivables of 10,691 million yen and anincrease in inventories of 8,601 million yen. Compared to a year ago, cash outflow rose 9,728 million yen.
Cash used in investing activities was 12,373 million yen. Looking at its breakdown, a major cash outflow item was the purchase ofproperty, plant and equipment of 11,060 million yen. Compared to a year ago, cash outflow decreased 51 million yen.
Cash used in financing activities was 4,388 million yen. Looking at its breakdown, major cash flow items were proceeds frompayments from non-controlling interests of 2,158 million yen, purchase of treasury shares of 1,316 million yen and dividends paid of
5,117 million yen. Compared to a year ago, cash outflow rose 28,844 million yen.

4(3) Description of projections of consolidated business results
As announced in “Tsumura Announces Revision of Earnings Forecast” dated February 6, 2024, the Company revised its
projections of full-year consolidated business performance for the fiscal year ending March 31, 2024 released on May 9, 2023 in lightof recent performance trends. Details are as follows.
(i) Revision of projections of consolidated business results
Revision of projections of consolidated business results for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31,
2024)

Million yen

OperatingprofitMillion yen

140,043

20,916

Net sales
Previous forecast (A)Revised forecast (B)Change (B - A)
Percentage change (%)（Reference) Results forprevious fiscal year (ended

150,500
152,000
1,500
1.0%

18,00019,5001,500
8.3％

Million yen

Profit attributable toowners of parent
Million yen

13,00016,2003,200
24.6％

171.02
213.1523,453

16,482215.63

Ordinary profit

18,60022,4003,800
20.4％

Profit per share
Yen

March 31, 2023)(ii)

Reason of revision

Operating profit is expected to exceed the previously announced forecast by 1.5 billion yen, reaching 19.5 billion yen. This reflects
lower-than-expected processing costs in Japan and selling, general and administrative expenses, etc. Moreover, thanks to the upwardrevision of operating profit and the impact of the weaker yen, both ordinary profit and profit attributable to owners of parent are
expected to exceed the previously announced figures by 3.8 billion yen, with 22.4 billion yen, and by 3.2 billion yen, with 16.2 billion
yen, respectively. As a result, the Company has revised its business performance forecasts.
(iii) Dividend forecast
There is no change in the dividend forecast accompanying this revision of business performance forecasts. The Company plans to pay
dividends for the fiscal year ending March 31, 2024 in accordance with the shareholder return policy released on November 7, 2023.
(Note) The above business performance forecasts were prepared based on information available as of the date of this announcement,
and actual performance may differ from the forecasts due to a variety of factors.

5

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023

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
Current portion of bonds payable
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Allowance for employee share benefits
Provision for share awards for directors (and otherofficers)
Other
Total non-current liabilities
Total liabilities

6

As of December 31, 2023

94,752
58,087
11,257
14,43076,03813,933(178)
268,32080,541
69,844
12,63815,341
83,918
16,691(252)
278,724

91,197
107,260(105,042)
93,415

95,161
116,825(112,707)
99,2798,480
6,166
14,647

8,706
8,091
16,797

11,160
2,518
6,750
(0)
20,429128,492
396,813

14,288
2,841
6,340
(0)
23,470139,547
418,272

16,443
10,313－
3,233
17,21447,205

13,566
10,31315,0001,473
17,25557,60860,0009,377
59－

45,000
9,377
49
314

111

193

7,814
77,361
124,566

8,601
63,535
121,144(Millions of yen)
As of March 31, 2023
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 December 31, 2023

30,142
13,739194,224(1,068)237,037

30,142
13,739205,247(2,381)
246,748

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

5,249
314
2,673
16,807(769)
24,274
26,105297,127
418,272

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income / For the Third Quarter Consolidated Accumulative Term
Nine-month ended
December 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
Loss on COVID19
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8(Millions of yen)

Nine-month ended
December 31, 2023

107,076
54,51752,55934,836
17,723

115,826
60,76755,05935,915
19,143

398
264
2,906
439
4,009

522
300
2,201
540
3,565

169
142
10
323
21,410

278
－
29
308
22,400

5

1

463

－

－
469

446
447

3
35
257
296
21,582
5,060
16,521646
15,875－26－
26
22,821
5,034
17,786
1,635
16,151

Quarterly Consolidated Statements of Comprehensive Income / For the Third Quarter Consolidated Accumulative Term
(Millions of yen)
Nine-month ended
December 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

Nine-month ended
December 31, 2023
16,521

17,786165(2,150)12,691
2

2,602
284
8,466
26

(69)

－

10,63927,161

11,38029,16623,56925,417

3,591

3,749

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine-month ended
December 31, 2022

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
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
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
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
Proceeds from issuance of bonds
Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Dividends paid
Dividends paid to non-controlling interests
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

10Nine-month ended
December 31, 2023
21,582
7,578
381
17
(663)
169
142

22,821
7,583
385
58
(823)
278
－

32

25

(463)

－

(5,810)(773)(1,759)(10,691)(8,601)
(660)

－

(446)

(324)
12
(5,542)
14,581671(148)(6,174)
8,930

(292)
(2)
(4,813)
4,821
860
(148)
(6,332)(798)

7(9,724)22(2,135)

7(11,060)
19(2,087)(9,713)(5,541)

9,705

6,610

(388)
(174)
175
(199)
(12,425)

－
－
0
(322)
(12,373)

29,857(446)－(1,316)－

2,158(4,889)(70)
624,456
5,213
26,17567,536
93,711(5,117)(40)(72)(4,388)3,326(14,233)
94,73080,496

(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).”11