Tsumura & Co. · TSE:4540
Tsumura & — Q1 FY2023 Earnings Presentation
22 slides from Tsumura &'s earnings presentation, Aug 4, 2023
Slide 1: First Quarter Business Results for Fiscal 2023
First Quarter Business Results for Fiscal 2023 August 4, 2023 Director, and CFO Muneki Handa
Slide 2: Agenda
agenda 01 First Quarter Business Results for FY 2023 02 Initiatives and Progress for Domestic Business 03 Initiatives and Progress for China Business 2
Slide 3: Roadmap for the Realization of the TSUMURA VISION "Cho-WA" 2031
Roadmap for the Realization of the TSUMURA VISION “Cho-WA” 2031 1st stage 2nd stage 3rd stage FY2022-2024 FY2025-2027 FY2028-2031 —Germination— —Growth— —Flowering— Standardization of Kampo Over 50% physicians write 10 treatments or more Kampo prescriptions Prescription Kampo 50% of physicians write
Slide 4: 1Q Business Results for FY 2023
1Q Business Results for FY 2023 1Q 1Q YoY Progress 【Million yen】 FY 2022 FY 2023 1H plan Rate results results Amount Change （vs. 1H plan） Ratio to total sales Sales 34,417 37,036 +2,618 +7.6% 74,000 50.0％ Domestic business 31,562 32,988 +1,426 +4.5% 65,900 50.1％ China business 2,855 4,047 +1,191 +41
Slide 5: Key Points in Performance
Key Points in Performance ・Net sales rose reflecting growth in the domestic and China businesses ・Profit declined chiefly due to impact from unrealized gains, a rise in the cost of procuring crude drugs, and impact from a depreciation in the yen’s value Net sales 37,036 million yen YoY ＋7.6％ Progres
Slide 6: Factors Triggering Changes in Operating Profit (YoY)
Factors Triggering Changes in Operating Profit (YoY) (Million yen) (Million yen) Sales increase +957 Domestic business +789 +957 (1,986) China business +168 Cost of sales increase (1,986) Impact of unrealized Domestic business: Unit sales price (of which NHI price revision gains impact was +395) +55
Slide 7: Crude Drug Procurement Cost: Impact of Unrealized Gains
Crude Drug Procurement Cost: Impact of Unrealized Gains The one-off increase in unrealized gains owing primarily to the handling of a lift on restricted shipments is expected to head toward a decline in and after 2Q Inventory rose owing to an expansion in production ahead of the lift of restricted s
Slide 8: Raw Material & Energy Expense Trends
Raw Material & Energy Expense Trends （billion yen） 25 Raw material expense Energy expense Raw material expense 20 ・It's been risen from FY2022 due to the effects of inflation and the depreciation of the yen, and will be expected to be nearly flat after 15 the 2Q of FY2023 10 Energy expense 5 ・Sharp
Slide 9: Financial Condition/Cash Flow Position
Financial Condition/Cash Flow Position （Million yen） FY 2022 FY 2023 Change （March 2023） 1Q 947 (1) (49) （Million yen） Total assets 396,813 405,437 8,623 Current assets 268,320 272,369 4,048 128,492 133,067 (15) Non-current assets 4,574 +7 889 Total liabilities 124,566 126,345 1,779 Current liabilit
Slide 10: Agenda: Initiatives and Progress for Domestic Business
agenda 01 First Quarter Business Results for FY 2023 Initiatives and Progress for Domestic 02 Business 03 Initiatives and Progress for China Business 10
Slide 11: Comparison with the Prescription Pharmaceutical Market
Comparison with the Prescription Pharmaceutical Market Growth rate recovered owing to the lifting of restricted shipment items (23 items) in June August 2022 Status for lifting of Start of restricted All sales channels 9.6% shipments restricted shipments (YoY/NHI drug price basis) June 5: 22 items (
Slide 12: Sales of Restricted Shipment Items
Sales of Restricted Shipment Items ・Sales of common-cold formulations declined in the winter months due to the start of shipment restrictions in and after the end of August 2022 ・ Sales of restricted shipment items recovered from June owing to a lift on restricted shipments Increase in demand (Milli
Slide 13: Sales of Drug-fostering Program Formulations/Growing Formulations
Sales of Drug-fostering Program Formulations/Growing Formulations （Million yen） Net sales Product No./formulation Ranking name FY 2022 1Q FY 2023 １Q YoY 2,505 2,515 +9 +0.4% Drug-fostering program 1 100 Daikenchuto 54 Yokukansan 1,933 1,940 +6 ＋0.4% formulations 2 Ratio to total sales 4 43 Rikkunshi
Slide 14: Status of Information Provision Activities after the Lift of Shipment Restrictions
Status of Information Provision Activities after the Lift of Shipment Restrictions Partial restrictions, including Web video streaming, after the implementation of shipment restrictions, and resumption of activities after the lifting of shipment restrictions Trends of the number of cases of detailin
Slide 15: Boost Production Capacity for Domestic Business: Launching the Tianjin Plant
Boost Production Capacity for Domestic Business: Launching the Tianjin Plant (Tianjin Tsumura Pharmaceuticals Co., Ltd.) Production capacity for Kampo ・Phase 1 construction is going through procedures to powdered extract (intermediate product) to frontload the timing of the start of shipments rise a
Slide 16: Agenda: Initiatives and Progress for China Business
agenda 01 First Quarter Business Results for FY 2023 02 Initiatives and Progress for Domestic Business 03 Initiatives and Progress for China Business 16
Slide 17: Crude Drug Platform
Crude Drug Platform Sales growth, mainly for mainstay raw material crude drugs, through quality-oriented sales activities Raw material crude Drug pieces 41.7％ drugs (Crude drug pieces) growth＊ 1H plan 40 81 billion yen billion yen 28 billion Sales for prescription-use and yen as an OTC to hospitals
Slide 18: Formulation Platform: July Release
Formulation Platform: July 31 Release Notification of the signing of an agreement related to the transfer of equity interest in Shaanxi Unisplendour Life Care Pharmaceutical Co., Ltd. by Ping An Tsumura Inc. • Signed an agreement on the transfer of equity interest on April 13 (acquisition of total e
Slide 19: Vision for China Business
Vision for China Business Stable procurement/supply of Contribute to the health of China’s citizens raw material crude drugs Health & Medicine Traditional Chinese medical products business Recuperation business Treatment Expand standard (Prevention) Raw material crude drugs Kampo treatments Nutritio
Slide 20: Inquires about these materials
Inquires about these materials Corporate Communications Dept. Investor Relations Group investor_madoguchi@mail.tsumura.co.jp Cautionary items regarding forecasts ⚫ The materials and information provided in this presentation contain so-called forward-looking statements. Readers should be aware that t
Slide 21: Appendix
of TSUMURA Appendix
Slide 22: Curbing of the NHI Drug Price Revision Ratio
Curbing of the NHI Drug Price Revision Ratio ・We plan to continue to promote the “value” of our prescription Kampo products and make proposals to related ministries in collaboration with industry groups ・In recent years, the reduction rate has been curtailed. In April 2023, a positive revision was i