Tsumura & Co. · TSE:4540
Tsumura & — FY2022 Earnings Presentation
26 slides from Tsumura &'s earnings presentation, May 10, 2023
Slide 1: Business Results for Fiscal 2022 and Earnings Forecast for Fiscal 2023
Business Results for Fiscal 2022 and Earnings Forecast for Fiscal 2023 Director, and CFO Muneki Handa
Slide 2: Agenda
Agenda 01 FY 2022 Business Results Overview 02 FY 2023 Earnings Forecast 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: FY2022 Business Results Overview
FY2022 Business Results Overview FY 2022 FY 2022 YoY Achievement 【Million yen】 Plan Results rate Amount Change Ratio to total sales Sales 138,500 140,043 101.1% +10,497 +8.1% Domestic business 124,300 124,698 100.3% － － China business 14,200 15,345 108.1% － － Operating profit 20,800 20,916 100.6% (1
Slide 5: Key Points in Performance
Key Points in Performance Achieved plans for sales and at each profit level. Net sales 140,043 million yen Achievement rate 101.1% YoY +8.1% ◼ Domestic business Total sales for the 129 prescription Kampo products: 119,362 million yen, rose 4.6% year-on-year Total sales of the OTC Kampo formulations
Slide 6: Domestic Business: Sales of Drug-fostering Program Formulations/Growing Formulations
Domestic Business: Sales of Drug-fostering Program Formulations/Growing Formulations (Million yen) Net sales Ranking Product No./Formulation name FY 2021 FY 2022 YoY Ratio to total sales 9,569 9,739 +169 +1.8% Drug-fostering program 1 100 Daikenchuto 7,379 7,380 +1 +0.0% Drug- formulations 3 54 Yoku
Slide 7: China Business: Crude Drug Platform Business
China Business: Crude Drug Platform Business Growth in sales, chiefly of raw material crude drugs 54.6% (Plan) Raw material Sales to traditional Chinese medical growth 17.2 crude drugs ＊ products companies as a raw material billion yen 15.3 Cultivate new customers billion Expand the value of transac
Slide 8: Agenda
Agenda 01 FY 2022 Business Results Overview 02 FY 2023 Earnings Forecast 8
Slide 9: FY 2023 Earnings Forecast
FY 2023 Earnings Forecast Forecasting an increase in sales and decline in profit year-on-year FY 2022 FY 2023 YoY [Million yen] Results Earnings Forecast Amount Change Net sales 140,043 150,500 +10,456 +7.5% Domestic business 124,698 133,300 +8,601 +6.9% China business 15,345 17,200 +1,854 +12.1% Op
Slide 10: Factors Triggering Changes in Sales in FY 2023
Factors Triggering Changes in Sales in FY 2023 ・Further create demand for Kampo products by implementing sales measures, mainly the strengthening of e-promotions ・Continue to implement a system to boost production capacity in response to demand for Kampo products 150.5 billion yen 140.0 billion yen
Slide 11: Domestic business: Trends in the Number of Physicians Writing 10 or More Prescriptions
Domestic business: Trends in the Number of Physicians Writing 10 or More Prescriptions for Kampo Pharmaceuticals ・The number of physicians writing 10 or more prescriptions for Kampo pharmaceuticals increased by approximately 20,000 physicians, a ratio of 32%* ・The issue is the increase in physicians
Slide 12: Domestic Business: Information Provision Activities
Domestic Business: Information Provision Activities ・The number of cases of information recognition (FY 2022) increased 53% in comparison with the level prior to COVID-19 (FY 2019) ・Aim to improve the quality of activities through information provision that suits each individual medical practitioner
Slide 13: Factors Triggering Changes in Operating Profit in FY 2023
Factors Triggering Changes in Operating Profit in FY 2023 ・Substantial impact from external factors, including inflation and yen depreciation External factors: (24) Internal factors: (5) +33 (3) (35) 20.9 billion yen (11) (18) (24) +29 18.0 billion yen FY 2022 Crude drug Soaring energy and Exchange
Slide 14: Improving corporate value through growth investment
Inproving corporate value through growth investment Investing in growth to improve corporate value by realizing the vision Growth Investment ・Research for personalize Kampo treatment ・Scientific elucidation of Pre-symptomatic Disease ・Research for expansion of the standardzation of Sustainable expan
Slide 15: Improve Productivity via Introduction of DX in the Kampo Value Chain
Improve Productivity via Introduction of DX in the Kampo Value Chain Cultivation/procurement Manufacturing Sales/education/popularization Shenzhen Tsumura Medicine, Ibaraki/Shizuoka Plants China Medico Technology Shanghai/Tianjin Plants Ishioka Center, Yubari Tsumura Automation of selection operatio
Slide 16: Shareholder Return Policy
Shareholder Return Policy ・Aim to improve corporate value through growth investments after continuing to payout stable dividends In the upfront investment and foundation building stage, Dividend continue to pay a stable annual dividend per share of ¥64 Operating CF Growth Upfront Investments/Foundat
Slide 17: 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 18: Appendix
of TSUMURA Appendix
Slide 19: Factors Triggering Changes in Operating Profit (YoY)
Factors Triggering Changes in Operating Profit (YoY) （ Million yen ） （ Million yen ） Breakdown of change in net sales:+3,417 Domestic +2,737 +3,417(1,352) Overseas +679 (2,244) Breakdown of change in cost-to-sales: (1,352) (1,280) Crude drug procurement cost (619) Raw material expense (Domestic: Soa
Slide 20: Financial Condition/Cash Flow Position
Financial Condition/Cash Flow Position （ Million yen ） FY 2021 FY 2022 Bond issuance: 30 billion yen (Sep. 8, 2022) (March 2022) (March 2023) Change （ Hundred million yen ） Total assets 350,981 396,813 45,831 +18 947 +244 Current assets 229,420 268,320 38,900 Non-current assets 121,561 128,492 6,931
Slide 21: Comparison with the Prescription Pharmaceutical Market
Comparison with the Prescription Pharmaceutical Market Sales increased 1.8% year-on-year on a NHI drug price basis; the rate of sales growth was sluggish due to the negative impact of restricted shipments (YoY/drug price basis) All sales channels 9.6% 7.9% 7.7% Tsumura 7.1% 6.6% 5.5% 5.5% (Excluding
Slide 22: Comparison with the Prescription Pharmaceutical Market
Comparison with the Prescription Pharmaceutical Market Tsumura (YoY/drug price basis) Prescription pharmaceutical market General clinics (GP) Hospital market (HP) 12% 11.1% 12% 10% 9.1% 8.7% 10% 7.5% 7.8% 8% 8% 6.4% 6.3% 5.2% 4.1% 6% 4.7% 5.1% 6% 4.1% 3.9% 3.8% 4% 2.4% 4% 1.1% 2.3% 1.9% 2.3% 1.4% 3.
Slide 23: COVID-19 Impact and Outlook
COVID-19 Impact and Outlook ・Symptoms reflecting changes in the living environment continue to offer prescription opportunities despite a partial decline ・Increase in prescription opportunities for common cold-related formulations due to the spread of common colds during the winter season (Shipment
Slide 24: Create Value and Implement Job Satisfaction Reforms Leveraging Organizational and Human Capital
Create Value and Implement Job Satisfaction Reforms Leveraging Organizational and Human Capital Cultivate Management Personnel Foster Corporate Culture Basic management lecture Long-Term Vision (10-year) Survey outcome was ・Employees that completed the course Standard KPIs 4.0-plus 52 people (of whi
Slide 25: Promote diversity and inclusion
Create Value and Implement Job Satisfaction Reforms Leveraging Organizational and Human Capital Promote diversity and inclusion Encourage male employees to take Increased ratio of childcare leave female managers (Acquisition ratio for childcare leave and average period 100.0 30 of childcare leave) 8
Slide 26: Dividend and Payout Ratio Trends
Dividend and Payout Ratio Trends 45.0% 100 37.4% 35.9% 35.7% 35.6% 40.0% 33.5% 32.1% 31.9% 31.9% 29.7% 35.0% 80 26.0% 30.0% 60 25.0% Year-end 期末配当（円） dividend (yen) 32 32 32 32 32 32 32 32 32 32 20.0% 40 Interim 中間配当（円） dividend (yen) 15.0% 10.0% 20 Payout 配当性向ratio 32 32 32 32 32 32 32 32 32 32 5.0