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, 2024
TSUMURA & CO. Company name: Tokyo Stock Exchange Listing: Securities code: 4540 URL: https://www.tsumura.co.jp Terukazu Kato, President Representative Director and CEO Representative: Inquiries: Makoto Kitamura, Head of Corporate Communications Dept. Telephone: +81-3-6361-7100 Scheduled date of annual general meeting of shareholders: June 27, 2024 Scheduled date to commence dividend payments: June 28, 2024 Scheduled date to file annual securities report: June 27, 2024 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: and news media) Yes (for institutional investors, securities analysts (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated business results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31,
2024)

For the fiscal year ended March 31, 2023: ¥19,757 million [(33.9)%]
Equity As of March 31, 2024: As of March 31, 2023: ¥270,802 million ¥252,046 million
Note: The year-end dividend per share for the fiscal year ended March 31, 2024 has been changed from 35 yen to 50 yen. For details, please refer to the "Notice Concerning Dividends of Surplus (Dividend Increase)" released today (May 9, 2024).
3.
Projections of consolidated business results for the term ending March 31, 2025
(From April 1, 2024 to March 31, 2025) (Figures in percentage show the rate of increase or decrease from the previous fiscal year for full-year

* 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 Changes in accounting policies due to revisions to accounting standards and other regulations: None (i) Changes in accounting policies due to other reasons: None (ii) (iii)  Changes in accounting estimates: None (iv)  Restatement: None (3) Number of issued shares (common shares)
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 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 a possibility 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. ...

1. Overview of Operating Results, etc.
(1) Overview of operating results for the fiscal year ended March 31, 2024 Consolidated business results for the fiscal year under review were as follows:
Net sales increased 7.7% year on year, to 150,845 million yen. Net sales of the domestic business increased 5.9% year on year, to 132,099 million yen. Sales of 129 prescription Kampo preparations increased 5.9% year on year, to 126,357 million yen. Total sales of drug fostering formulations*1 grew 2.3% year on year, while total sales of growing formulations*2 rose 5.9% year on year, buoyed by Goreisan, Ninjin yoeito and Kamikihito. This strong growth was attributable to information supply activities according to needs for Goreisan in the cardiovascular area and for symptoms such as headaches and dizziness, for Ninjin yoeito from frail elder people who are suffering from a loss of appetite and for Kamikihito from people suffering anxiety/insomnia.
Sales of OTC Kampo formulations in the domestic business increased 11.9% year on year, to 4,439 million yen, reflecting a rise in the number of stores handling the products. Net sales of the business in China increased 22.2% year on year, to 18,745 million yen, driven by 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 of crude drugs and crude drug pieces for decoction. The cost of sales increased 14.3% year on year, to 82,028 million yen, mainly attributable to the growth in net sales, rising crude drug procurement costs, the weakening yen, and persistently high prices of raw and other materials. The cost-to-sales ratio rose 3.2 percentage points year on year, to 54.4%. Selling, general and administrative expenses increased 3.0% year on year, to 48,799 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 1.4 percentage points year on year, to 32.4%, attributable to the increase in net sales. As a result, operating profit decreased 4.3% year on year, to 20,017 million yen. The operating profit margin was 13.3%, falling 1.6 percentage points from a year ago. Ordinary profit rose 0.2% year on year, to 23,493 million yen, reflecting foreign exchange gains, and profit attributable to owners of parent increased 1.4% year on year, to 16,707 million yen.
* 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]
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 and adjusting production plans. (2) Overview of financial condition during the fiscal year ended March 31, 2024 The financial position at the end of the fiscal year under review was as follows: Total assets at the end of the fiscal year increased 31,440 million yen from the end of the previous fiscal year, to 428,254 million yen. Current assets increased 12,971 million yen from the end of the previous fiscal year, mainly due to a rise in raw materials and supplies, etc. Non-current assets increased 18,469 million yen from the end of the previous fiscal year, mainly due to increases in property, plant and equipment, etc. Total liabilities were 132,889 million yen, increase of 8,322 million yen from the end of the previous fiscal year, primary owing to a increase in notes and accounts payable – trade, etc. 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 295,364 million yen, an increase of 23,118 million yen from the end of the previous fiscal year. Shareholders' equity rose 10,269 million yen from the end of the previous fiscal year, mainly reflecting an increase in retained earnings, etc. Accumulated other comprehensive income climbed 8,486 million yen from the end of the previous fiscal year, chiefly due to an increase in valuation difference on available - for - sale securities, foreign currency translation adjustment, etc. Non-controlling interests increased 4,362 million yen from the end of the previous fiscal year. As a result, the equity ratio decreased 0.3 percentage points, to 63.2%. (3) Overview of cash flow during the fiscal year ended March 31, 2024 Cash flows in the fiscal year under review were as follows: For the fiscal year under review, cash provided by operating activities was 5,608 million yen, cash used in investing activities was 19,351 million yen and cash used in financing activities was 4,417 million yen. Cash provided by operating activities was 5,608 million yen. Looking at its breakdown, a major cash inflow item was profit before income taxes of 23,736 million yen, while a major cash outflow item was an increase in inventories of 12,869 million yen and an increase in trade receivables of 8,412 million yen. Compared to the previous fiscal year, cash inflow decreased 10,844 million yen. Cash used in investing activities was 19,351 million yen. Looking at its breakdown, a major cash outflow item was the purchase of property, plant and equipment of 16,823 million yen. Compared to the previous fiscal year, cash outflow increased 3,857 million yen. Cash used in financing activities was 4,417 million yen. Looking at its breakdown, major cash flow items was dividends paid of 5,126 million yen. Compared to the previous fiscal year, cash paid increased 28,841 million yen. As a result, cash and cash equivalents decreased 16,695 million yen from the end of the previous fiscal year to 78,034 million yen.
(4) Future outlook
With respect to results forecasts for the fiscal year ending March 31, 2025, the net sales forecast is 185,000 million yen, in view of the growth of prescription Kampo products in Japan, an increase in revenue associated with drug price revisions and a trend towards growth in the China business. Net sales from the China business are expected to account for 21,600 million yen of this total. Profit forecasts are operating profit of 39,500 million yen (up 97.3%), ordinary profit of 39,500 million yen (up 68.1%), and profit attributable to owners of parent of 28,500 million yen (up 70.6%). This was attributable to the positive effects of drug price revisions contributing to increased revenues, although it will likely be partly offset by exchange rates (weakening yen), prices of energy and raw and other materials remaining at high levels, and rising procurement prices of certain crude drugs. In Japan, the Company will conduct intensive capital investment, research and development and information supply activities, with the aim of strengthening the stable product supply structure and achieving a sustained expansion in the Kampo domain in the future. Specifically, capital investment will continue to reinforce production capacity and improve productivity. In research and development, the Company will seek to expand the standard of care for Kampo and develop evidence, to work on personalized Kampo treatment utilizing leading-edge technology, and to contribute to public health depending on each person's life stage (treatment, pre-symptomatic disease, cure (prevention)). With respect to information supply activities, Kampo DX Promotion Department will be launched for a hybrid promotion that combines MR activities and e-promotion, with the aim of realizing a medical setting in which the majority of physicians prescribe 10 or more prescriptions of ethical Kampo formulation based on Kampo medicine. The Company will strive to pursue 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 the China business, the Company aims to deliver an operating profit by expanding sales of crude drugs and crude drug pieces for decoction in crude drug platforms. Moreover, it will engage in M&A as well as research and development focused on classic prescriptions for the purpose of expanding the traditional Chinese medicinal product business in the formulation platforms. (Million yen)
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.
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income

(3) Consolidated Statements of Changes in Equity

For the fiscal year ended March 31, 2024
(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, 2022 to March 31, 2023) The Group posted an impairment loss in the asset groups below.
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 under review. Impairment losses for the fiscal year under review were 597 million yen, which consisted of 597 million yen for construction in progress. The recoverable amount is measured by value in use, which is evaluated as zero because no future cash flows are expected. Fiscal year under review (From April 1,2023 to March 31, 2024) There are no applicable matters. (Segment information) Segment information is not shown because the Group's operations are limited to the single segment of pharmaceutical products.
(Notes) 1. Diluted earnings per share is not stated because there are no residual securities.
included in treasury shares that are deducted from the total number of shares outstanding at the end of the period (137,562 shares for the current consolidated fiscal year, 137,800 shares 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 the calculation of the average number of shares outstanding during the period (137,679 shares for the current consolidated fiscal year, 84,800 for the previous fiscal year). 4. In calculating net assets per share, the shares of the Company's stock held by the Employee Stock Ownership Plan (ESOP) trust are included in treasury shares that are deducted from the total number of shares outstanding at the end of the period (462,412 shares for the current consolidated fiscal year). Also, in calculating basic earnings per share, the shares of the Company's stock held by the ESOP Trust are included in treasury shares that are deducted in the calculation of the average number of shares outstanding during the period (388,572 shares for the current consolidated fiscal year). (Significant subsequent events) There are no applicable matters.