November 10, 2025 TSUMURA &CO.
Today's Agenda01
Towards the realization of the Long-term
Management Vision 203102
-Fiscal Year 2025 Q2 (Interim) Financial Results Overview
-Revision of Fiscal Year 2025 Earnings Forecast
-Revision of Numerical Targets in the Second Mid-term
Management Plan
Business environment of traditional Chinese medicinal productsEasing of foreign investment regulations (negative list)
Processing
(specifically for traditional Chinese medicinal products)
In accordance with the theory of Traditional Chinese Medicine (TDM), drugs pieces are processed, including “steaming,” “boiling,” and “roasting,” with the goal of reducing changes in drug piece drug efficacy and toxicity, and preservation
Raw material crude drugs
Drug piece after processing
Charred byakujutsu Fried byakujutsu
Crude drug name: Byakujutsu
Foreign companies could not conduct process owing to foreign investment regulations
Sep. 8, 2024: Proclamation of a deregulation notification
(enacted November 1, 2024)
Vision for the China businessTSUMURA VISION “Cho-WA” 2031Becoming a traditional Chinese medicine company trusted in China
A state of contributing to public health in China
Business Vision
Business strategy
Building an infrastructure to realize a future of "Cho-WA" (a well-balanced state)
“Personalized Medicine” Smart FactoryOrder management
Fully Automated Process
Blending
Decoction
Decoction (product)
Aiming to develop technology for the industry's first automation of the manufacturing process
Liquid Extract Extract powder 4
CHINA MEDICO “Personalized Medicine” Smart Factory
Milestones for China Business towards the 2031 VisionFormulation
Platform
First Medium-Term Management Plan FY2022-2024
Considering business entry Partnership negotiations
Second Medium-Term Management Plan FY2025-2027
Business entry and expansion Entering the traditional Chinese medicinal products business and Foundation Building
Third Medium-Term Management Plan FY2028-2031
Brand establishment Establish a brand as a Chinese herbal medicine company
Crude drug Platform
Expanding awareness of crude drug quality Focusing on crude drugs Sales expansion
Development of high-value-added products and services Increase sales ratio of drug pieces and value-added services
Leading the industry Towards becoming a trusted Chinese medicine company in China
Research Platform
Policy review
Foundation Building Evidence building
Global prospects of traditional medicine and herbal medicinesAging Society and Increase in Chronic Diseases
Chronic diseases are increasing globally due to aging populations, diversifying medical needs
The importance of traditional medicine and herbal medicines
Multicomponent herbal medicines are attracting attention as treatment (of health issues) capable of addressing complex symptoms
Evidence-Based Kampo treatment
Our Kampo product contribute to solving medical challenges based on Science evidence
WHO report and the utilization status of herbal medicines
International Classification of Diseases defined by WHO
Overview of ICD*2-11 (International Classification of Diseases, 11th Revision)
＊1 Traditional and complementary medicine
ITEMS | PERCENTAGE | REMARKS |
Use of T&CM*1 by WHO Member States | 88% | Utilizing traditional medicine for citizens' Health management |
Population using herbal medicines | 80% | Central role in primary healthcare |
WHO Regulatory Project | Ongoing | Conservation and Standardization of Medicinal Plant Resources |
＊2 International Classification Code
Fully revised for the first time in about 30 years, officially implemented from January 2022
A chapter on Traditional Medicine such as Kampo medicine has been added, systematically
categorizing diagnostic categories originating from ancient China.
Source: WHO official website
WHO Global Centre for Traditional Medicine and the Gujarat Declaration
International Standardization of Traditional Medicine
WHO is internationally standardizing the classification of diverse traditional medicine (ICD-11)
Integration of Traditional Medicine into Healthcare
Out of the 194 member countries of WHO, 170 recognize their respective traditional medicine as valuable healthcare resources and promote its integration into healthcare systems.
Publication of the Gujarat Declaration
The center established with support from the Indian government serves as a hub for research, evaluation, and policy support in traditional medicine.
-In August 2023, the 1st WHO Traditional Medicine Global Summit 2023 was held in Gujarat, India, with the theme "Towards the health and well-being of all."
-Exploring the vast potential and applications of TCIM
(Traditional, Complementary and Integrative Medicine).
Source: WHO official website 8
Global development of pharmaceuticals derived from natural substances
A large-scale market that can be evaluated as global-quality pharmaceuticals
A growth market with a high affinity for herbal medicines and increasing demand for high-quality
Basic and clinical evidence
High-quality crude drug cultivation know-how and Robust supply chain
Advanced manufacturing quality control technology for multicomponent formulations
Our strengths
Today's Agenda01
Towards the realization of the long-term
management Vision 2031
02
Second Quarter (Interim Period) Business Results for Fiscal 2025
Sales were below plan for the domestic business, while the China business met the target
Each profit reached the plan
[Million yen] | Fiscal Year 2025 2Q Plan | Fiscal Year 2025 2Q Actual | Achievement Rate | Year-on-Year Comparison | |
Amount | Rate of Increase/Decrease | ||||
Sales | 91,500 | 89,897 | 98.2% | +825 | +0.9% |
Domestic business China business | 82,000 9,500 | 79,539 10,357 | 97.0% 109.0% | (434) +1,260 | (0.5)% +13.9% |
Operating Profit | 16,000 | 17,119 | 107.0% | (3,955) | (18.8)% |
Domestic business China business | 16,400 (400) | 17,135 (15) | 104.5% - | (4,060) +105 | (19.2)% - |
Ordinary Profit | 16,000 | 16,419 | 102.6% | (6,983) | (29.8)% |
Attributable to Parent Company Shareholders Interim Net Profit | 11,000 | 12,477 | 113.4% | (5,024) | (28.7)% |
P/L Conversion Rate *(Yen/Yuan) | - | 20.44 | - | (0.63) | - |
Ratio to total sales
Domestic business： Prescription Kampo Products
84.9%
* Using the average exchange rate during the period, which differs from the import rate for raw material crude drug.
China Business:
Crude drug platform 11.5%
Domestic Business:
Healthcare products
(OTC Kampo medicine, etc.) 3.0% Domestic Business:
Others 0.6%
11
Key Points in PerformanceNet sales
89,897
million yen
1H FY 2025
achievement rate
98.2%
YoY
+0.9%
Domestic business Total sales for the 129 prescription Kampo formulations:76,273 million yen, declined 1.1% year-on-year Total sales of healthcare products (OTC Kampo medicine, etc.) : 2,719 million yen, up 22.1% year-on-year
China business Raw material crude drugs, drug pieces, health products, etc. : 10,357 million yen, up 13.9% year-on-year
Operating profit | 17,119 | million yen 1H FY 202 achievem |
Operating profit margin | 23.7 | % versus 1H 2024 plan |
4
ent rate FY
107.0% YoY (18.8)%
+1.5pt YoY (4.7)pt
Cost ratio: 51.6% (0.9)pt vs. 1H plan; +3.1pt YoY
Vs. plan: Decrease in unrealized profit, reduction in processing costs YoY: Increase in costs of crude drug and processing expenses
SG&A expense ratio: 29.3％ (0.8)pt versus 1H plan; 1.5pt YoY
Vs. plan: review of various activities, reduction and timing shift in R&D expenses YoY: increase in salaries and allowances, costs related to information provision
achievement rate
achievement rate
Ordinary profit 16,419 million yen 1H FY 2024
102.6% YoY (29.8)%
n exchange gains were 1,752 million yen same period of the previous year
Foreign exchange gain not factored into earnings forecast
*
Foreign exchange gains were 1,752 million yen in the same period of the previous year,
Foreig
Foreign exchange loss related to loans to overseas subsidiaries: (789) million yen in the
Profit
attributable to owners of parent for the six months
12,477 million yen 1H FY 2024
113.4% YoY (28.7)%
Gain on sales of cross-shareholdings ：1,976 million yen, up 163 million yen YoY
*Gain on sales of cross-shareholdings not factored into earnings forecast
12
Factors for Increase and Decrease in Operating Profit (compared to first-half plan)
Although sales fell short of the plan, operating profit reached the plan due to reduced
Decrease in sales: (1,542) million yen | |
Domestic business (sales volume, sales composition) | (1,621) |
China business | +79 |
processing costs and controlled selling, general and administrative expenses.
(Million yen)
16,000
(1,542)
+1,286
+1,209
(Million yen)
17,119
Improvement in cost of goods sold: +1,286 million yen | |||
Domestic Business | Crude drug cost | Domestic crude drug cost | +690 |
Crude drug cost contained in Chinese extract powder | (166) | ||
Raw ｍaterial costs | +49 | ||
Processing cost | Domestic processing cost | +713 | |
Processing cost for Chinese extract powder | (41) | ||
China business | Increase in sales composition ratio | +39 | |
+166
Improvement
FY 2025 Q2
Operating Profit (Plan)
Net sales Decrease
Cost of sales
Selling, General and Administrative Expenses Suppression
Exchange rate Impact
FY 2025 Q2
Impact of exchange rates: +166 million yen
Selling, General and Administrative Expenses Reduction +1,209 million yen | |
Salaries and Allowances | +496 |
Research and Development Expenses | +406 |
Others | +307 |
Operating Profit (Actual)
Factors for changes in operating profit (compared to the same period last year)
Decrease in Sales: (307) Million Yen | |
Domestic Business (Sales Volume, Sales Composition) | (531) |
China Business | +224 |
(Million yen)
21,075
Increase in cost of goods sold: (2,097) million yen | |||
Domestic business | Crude drug cost | Domestic cost of crude drug. | (78) |
Cost of crude drug herbs contained in Chinese extract powder. | (688) | ||
Raw material costs | (266) | ||
Processing costs | Domestic processing costs | (423) | |
Processing costs for Chinese extract powder | (397) | ||
China Business | Increase in sales composition ratio | (245) | |
Increase in Selling, General and Administrative Expenses (1,691) million yen | |||
salaries and allowances | (726) | ||
Selling and promotional expenses (increase in costs related to information provision, etc.) | (192) | ||
Outsourcing expenses (strengthening the foundation related to information provision, etc.) | (145) | ||
Others | (628) | ||
(307)
(2,097)
(1,691)
+139
(Million Yen)
17,119
FY2024 Q2
Of Sales
Cost of goods
Selling, general and exchange rates
FY2025 2Q
Operating Profit
Decrease
sold Increase
administrative expenses Increase
impact
Operating Profit
Impact of exchange rates +139 million yen
Domestic business: Sales by prescription of prescription Kampo
product prescription Kampo formulations
(Million yen)
Sales Ranking | Product No. / Formulation Name | FY2024 2Q | FY 2025 2Q | Year-on-Year Comparison | [Reference: Actual Sales Volume*] YoY | ||||
drug-fostering program formulations | 1 | 100 | Daikenchuto | 7,510 | 7,361 | (148) | (2.0)% | +2.6% | |
2 | 54 | Yokukansan | 5,816 | 5,600 | (215) | (3.7)% | +2.7% | ||
5 | 43 | Rikkunshito | 3,581 | 3,600 | +18 | +0.5% | +1.0% | ||
7 | 107 | Goshajinkigan | 2,830 | 2,783 | (46) | (1.7)% | +3.0% | ||
26 | 14 | Hangeshashinto | 726 | 759 | +33 | +4.6% | +4.1% | ||
Total drug-fostering program | 20,465 | 20,105 | (359) | （1.8）% | +2.5% | ||||
formulations | |||||||||
“ ” | 3 | 17 | Goreisan | 3,897 | 4,299 | +401 | +10.3% | +16.3% | |
4 | 41 | Hochuekkito | 3,937 | 3,866 | (71) | (1.8)% | (1.1)% | ||
9 | 24 | Kamishoyosan | 2,441 | 2,513 | +71 | +2.9% | +2.3% | ||
17 | 137 | Kamikihito | 1,125 | 1,207 | +82 | +7.3% | +6.7% | ||
21 | 108 | Ninjin-yoeito | 1,085 | 1,003 | (81) | (7.6)% | (4.1)% | ||
Total “growing” formulations | 12,487 | 12,889 | +402 | +3.2% | +6.7% | ||||
Total 119 Prescriptions Other Than Pediatric Medicine | 44,149 | 43,277 | (871) | (2.0)% | +1.6% | ||||
and “growing” formulations | |||||||||
Total 129 Prescriptions of prescription Kampo product | 77,101 | 76,273 | (828) | (1.1)% | +2.6% | ||||
prescription Kampo formulations | |||||||||
growing formulations
*Actual sales quantity refers to the quantity delivered from pharmaceutical agents and wholesalers to medical institutions.
Domestic Business: Trends in Growth Rates of Shipment Quantity
and Actual Sales Quantity
At the end of the 1st quarter, distribution inventory was optimized, resulting in actual sales and shipments moving at the same level in the 2nd quarter
Due to the impact of high-level inventory at the end of last fiscal year and limited
shipments, shipments fell short of the plan.
Trend of Sales Volume Growth Rate (Shipments and Actual Sales) of
129 Prescriptions of Kampo formulations
(Growth rate)
Actual
sales
Shipment
2.5%
4.4%
Increase in distribution inventory due to re-imposition of limited shipments
2.9%
2.7%
Recovery trend as limited shipment restrictions are lifted
0.4%
0%
△0.5%
0.3%
△0.1%
△1.1%
△0.6%
2.2%
Slowing down due to re-imposition of limited shipments
△3.3%
1Q 2Q 3Q 4Q 1Q 2Q
FY 2024
FY 2025
Domestic business: Actual sales volume trends for 129 prescription Kampo formulations
In August and September, there was a high growth rate of +5.1%,
aiming for actual sales exceeding the initial plan in the second half of the fiscal year
(Ten thousand boxes)
129Actual sales quantity of prescriptions
800 +5.7%
(Ten thousand boxes)
Daily average* actual sales volume
700
600
500
400
300
200
100
0
+2.9% +2.2%
+12.0% 14
12
10
8
6
4
2
0
Q1 ２Q Q3 Q4
Year 2022 Year 2023 Year 2024 Year 2025
5.2%
3.6%
5.6% 4.3%
0.4%
(2.7)%
4月
5月
6月
9月
8月
7月
FY 2024 FY 2025 YoY
*Calculated considering the number of business days per month
17
Domestic Business: Sales Volume Trends (Daikenchuto, Yokukansan)
(Ten thousand boxes)
■ FY2022 ■ FY2023 ■ FY2024 ■ FY2025
80#100 Daikenchuto
(Ten thousand boxes) #54 Yokukansan
55
+4.0%
Advance Orders
+1.2%
75 50
70 45
40
65
35
Limited shipment period
+1.7%
+3.7%
orders
Advance
60 30
1Q ２Q 3Q 4Q
Limited shipment period: None
1Q ２Q 3Q 4Q
Limited shipment period: April to July 2024
FY 2023: Continued growth but decreased due to limited shipments.
FY 2024: Decrease due to advance orders before limited shipments and switching to other prescriptions. Recovery is delayed due to some prescriptions being re-limited for shipment.
FY 2025: In addition to psychiatric and neurological symptoms associated with dementia's behavioral and psychological symptoms, it will expand to symptoms such as insomnia and irritability in other treatment area.
FY2022–2023: Flat due to fewer surgeries affected by COVID-19 and limited shipments of other prescriptions.
FY2024: Considering the impact of advance orders in Q4 of FY2023 due to the NHI drug price revision, the volume is almost flat.
FY 2025: Aiming to recover to the 2022 volume, we will strengthen information provision activities on websites (such as cancer care collaboration hospitals).
18
Domestic Business: Actual Sales Volume Trends
(Goreisan, Kamikihito)
■ FY2022 ■ FY2023 ■ FY2024 ■ FY2025
(Ten thousand boxes)
+13.4%
+19.2％
45
40
35
#17 Goreisan
(Ten thousand boxes)
7
6
+5.9%.
#137 Kamikihito
+7.4%.
30 5
25 4
20 3
1Q ２Q 3Q 4Q
FY 2022 to 2023: Increased demand due to anxiety and insomnia related to post-COVID-19 syndrome.
FY 2024: Recognition as a prescription for anxiety and insomnia spreads, leading to continuous growth.
FY 2025: Aimed to further expand by differentiating use for anxiety related to premenstrual syndrome and premenstrual dysphoric disorder.
FY 2023: Continued growth in neurosurgery and otolaryngology due to symptoms such as edema, dizziness, and headache.
FY 2024: Growth stagnated during the restricted shipment period but recovered after the restriction was lifted.
Fiscal Year 2025: Prescriptions are expanding due to dizziness and headaches during the rainy season. Also, with its inclusion in the heart failure Treatment guideline, the prescription scope will be expanded to cases accompanied by edema.
Limited shipment period: March to May 2024.
１Q ２Q ３Q ４Q
Domestic Business: Actual Sales Volume Trends
(Hochuekkito, Ninjin'yoeito)
■ FY2022 ■ FY2023 ■ FY2024 ■ FY2025
(Ten thousand boxes)
30
(2.0)%
(0.1)%
25
20
15
10
#41 Hochuekkito
(Ten thousand boxes) #108 Ninjin-yoeito
8
(5.4)%
(2.8)%
7
6
5
4
１Q ２Q ３Q ４Q
１Q ２Q ３Q ４Q
FY2024: Due to limited shipping, some customers switched to
other companies' products.
FY2025: Since limited shipping was just lifted in the 1st quarter, recovery will take time; however, we aim to recover to last year’s level within FY2025 by strengthening approaches to target markets such as elderly care facilities.
FY2022-2023: Demand for fatigue related to post-COVID syndrome increased, resulting in growth.
FY2024: Also used for summer weight loss, demand remains flat.
FY2025: Demand declined due to the backlash against post-COVID demand. In the field of oncology, activities will be strengthened at HP (cancer base hospitals, etc.).
Limited Shipping Period: December 2024 to January 2025
Domestic Business: Three Important DomainsInformation provision activities centered on the three important domains, which are social issues.
Cancer Area (Supportive Care): Approach to Hospital DoctorsHeld a total of 6 lectures in 5 cities for doctors at cancer treatment collaboration base hospitals, etc. Set up over 300 satellite venues with participation of more than 10,000 doctors
Cancer Caravan 2025In the field of supportive care and coexistence with cancer in the field of cancer medical care
Explanation of How to Use Kampo formulation for Patient Support
(Box)
820
800
780
760
740
720
700
680
660
640
620
Hangeshashinto Actual Sales Volume
Year-on-Year Comparison (Daily Basis)
(0.3)
%
5.3%
2.6% 2.6%
5.3%
9.3%
Schedule | Venue | Theme | Main Prescriptions |
6/18/2025 | Sendai | Oral mucositis | Banxia Xiexin Decoction |
8/26/2025 | Tokyo | Loss of appetite, nausea, and vomiting | Liujunzi Decoction |
10/29/2025 | Tokyo | Psychiatric symptoms | Yokukansan/Kamikiihito |
11/12/2025 | Nagoya | General malaise and fatigue | Hochuekkito/Ninjin-yoeito |
12/10/2025 | Osaka | Peripheral neuropathy | Gosha-jinki-Gan |
2/26/2026 | Fukuoka | Comprehensive review, side effects |
Fiscal Year 2024
Fiscal year 2025
Year-on-year comparison
Contributing to the medical field by disseminating information
tailored to the challenges of cancer care 22
Women-Related Area: a project to consult about menstrual issues
Strengthen awareness and collaboration with medical institutions regarding women's health issues
24.2%
75.8%
Question: Regarding the discomforts and symptoms before or during menstruation, have you thought they were “common” and not taken any measures? Have you had such an experience?
Yes
No
Survey on actual measures for symptoms before and during menstruation Survey conducted by: TSUMURA＆CO. Implemented by: QO Inc.
Method: Internet survey. Target: Women aged 19 to 34 nationwide (800 samples)
On a special website,
from doctors who supported this project,
to make it easy to consult, message videos that
are posted
Collaborate with medical institutions that provide gynecological treatment and display posters and
stickers
23
Domestic business: Evolution of online MR activities and
strengthening connections with physicians
Holding briefing sessions on important domains, important prescriptions, and seasonal prescriptions by Kampo online MRs
Transition of the number of interviews by Kampo Online MR
Kampo Online Studio
Quarterly
80-100 cases
1Q 2Q 3Q 4Q 1Q 2Q
Fiscal Year 2024 Fiscal Year 2025
24
Responding to unmet needs of unvisited physicians, completing online and connecting to MR
Domestic Business:Expansion of Quantity and Quality of Information ProvisionsDetail impact from e-promotion is 130% compared to the same period last year
Strengthen information provision mainly in the three priority areas in the second half
Internet Detail Impact Industry Ranking (by product)
Number of Detail Impact cases*
Ranking | April | May | June | July | August | September | 130% e-promotion | ||||
1st place | Yokukansan | Goreisan | |||||||||
2nd place | Kamishoyosan | ||||||||||
3rd place | Daikenchuto | ||||||||||
4th place | Rikkunshito | ||||||||||
5th place | Hochu- ekkito | ||||||||||
Within the top 10 | Shosei-Ryuto | Seisho-ekkito | FY2022 1H | FY2023 1H | FY2024 1H | FY2025 1H | |||||
Data period: April 2025 to September 2025
Data period: April 2022 to September 2025
Source: Intage Healthcare Survey "Impact Track"
* Number of Detail Impact cases: Number of instances of information recognition from various
channels such as MR activities and the internet (estimation)
e-Promotion: Online information provision activities without involving MR 25
China Business: Crude drug platformBoth sales and operating profit in the China business have progressed above the plan
China Business
Sales
10,357
million yen
13.9%
increase
Growth rate (YoY)
+16.2％
Growth rate (YoY)
+3.4%
Raw material
Crude drug PF
Operating profit 534 million yen
Related to new business and IT
infrastructure investment, etc.
Expenses, etc.
21.3%
increase
crude drug Drug pieces
China
Business
Operating profit (15)
million yen
Sold to traditional Chinese medicinal products manufacturers as raw materials
Sold to hospitals and pharmacies as prescription or OTC products
Major products of crude drug PF
Financial position:
Consolidation of Shanghai Hongqiao traditional Chinese drug pieces
From the second quarter (interim period) of fiscal 2025, consolidate the balance sheet
Consolidated income statement scheduled from the third quarter of fiscal year 2025
Company Name | Shanghai Hongqiao traditional Chinese drug pieces Co., Ltd. (hereinafter, Hongqiao drug pieces) |
Acquired equity ratio | 51% |
Acquisition date | August 8, 2025 (Deemed acquisition date: June 30, 2025) |
Acquisition amount | 23,837 million yen |
Generated goodwill amount | 20,590 million yen *The amount has been provisionally calculated; PPA will be conducted in the future |
Goodwill amortization method | Straight-line amortization (20 years) |
Factory of Hongqiao drug pieces
Consolidated balance sheet of consolidated Hongqiao drug pieces
(As of the end of June 2025)
(Million yen)
Total assets | 27,172 |
Current Assets | 17,488 |
Fixed Assets | 9,683 |
Total Liabilities | 20,902 |
Current liabilities | 8,012 |
Fixed liabilities | 12,890 |
Amount already paid (as of November 10, 2025)
16,686 million yen
(70% of the acquisition price)
Financial condition and cash flow(Million yen)
Financing activities
(billion yen)
Investing activities
Operating activities
Cash and cash equivalents Beginning balance
FY2024 (End of March 2025) | FY2025 2Q | Increase/ Decrease Amount | Including, Hongqiao Consolidation Impact | |
Total Assets | 464,380 | 516,486 | 52,105 | 23,915 |
Current Assets | 295,709 | 311,075 | 15,365 | 17,477 |
Fixed Assets | 168,670 | 205,411 | 36,740 | 6,437 |
Total Liabilities | 134,270 | 189,998 | 55,727 | 20,808 |
Current liabilities | 61,913 | 103,368 | 41,455 | 7,918 |
Long-termLiabilities | 72,357 | 86,630 | 14,272 | 12,890 |
Total Net Assets | 330,110 | 326,487 | (3,622) | 3,106 |
+9.9
(23.6)
+18.9 (6.6)
73.1
Equity Ratio | 64.7% | 56.9% | (7.8)pt |
71.6
FY2024 (End of March 2025) | FY2025 2Q | Amount of increase/ decrease | Of which, foreign exchange | |
Total inventory assets | 133,784 | 141,237 | 7,452 | (6,064) |
Merchandise and Products | 14,939 | 21,565 | 6,625 | (543) |
Work in Progress | 20,197 | 23,485 | 3,288 | (269) |
Raw materials and stored goods | 98,647 | 96,185 | (2,461) | (5,252) |
Cash and cash equivalents Ending balance
Foreign exchange differences, etc.
Efforts to enhance the balance sheet: Improving total asset turnover
Continuously implementing initiatives to shorten accounts receivable cycles and improve the turnover rate of crude drug inventory to enhance CCC.
Working on reducing policy-held shares and have achieved a 50% reduction compared to
the end of FY2023.
Transition of policy-held shares
15,241
(Million yen)
10,276
7,428
Principle of Zero
End of FY2023 End of FY2024 FY2025
2Q
End of FY2027
Revision of Performance Forecast for Fiscal Year 2025Revised earnings forecast due to consolidation of Hongqiao drug pieces, reduction of processing costs, and gains on sale of policy-held shares
[Unit: Million yen] | FY2025 Initial Plan | FY2025 Revised Plan | Increase/Decrease | Reason for Revision | |
Amount | Rate of Increase/ Decrease | ||||
Sales | 188,000 | 198,000 | +10,000 | +5.3% | Consolidation of Hongqiao drug pieces from the next semester |
Domestic Business | 167,900 | 167,900 | - | - | |
China operations | 20,100 | 30,100 | +10,000 | +49.8% | |
Operating profit | 34,200 | 35,000 | +800 | +2.3% | Domestic Business: Reduction of processing costs, suppression of selling, general and administrative expenses, etc. China business: The consolidated impact of Hongqiao drug pieces is minor due to costs related to accounting treatments specific to the first year of acquisition. |
Domestic business | 34,700 | 35,500 | +800 | +2.3% | |
China business | (500) | (500) | - | - | |
Ordinary Income | 34,000 | 34,500 | +500 | +1.5% | Gain on sale of policy-holding shares, etc. |
Attributable to parent company shareholders | 23,000 | 24,300 | +1,300 | +5.7% | |
ROE | 7.5% | 8.0% |
EPS | 302.95 yen | 320.08 yen |
Factors affecting the increase or decrease in operating profit forecast (compared to initial plan)
34.7
(0.1)
(0.1)
+0.4
+0.8
(0.2)
(billion yen)
Fiscal year 2025 Operating profit Beginning of term plan
Crude drug costs
raw material costs
Processing costs, etc.
selling, general and administrative expenses
exchange rate
Fiscal Year
35.5
2025
Operating Profit
Revised Plan 31
Second medium-term management plan numerical targets (FY2027)
*Revised on November 10, 2025
Sales Operating profit ROE
234
billion yen
46
billion yen
9%
After the
change
Premises (no changes): (NHI drug price revision) FY 2025, 2026, 2027
(Exchange rate) 20.1 yen per yuan (FY2025 to 2027)
234
billion yen
43
billion yen
8%
Before the change
(EBITDA Amount: billion yen)
Operating Profit
Depreciation Expenses Goodwill Amortization
【Conditions for Calculating Goodwill Amortization】
CHINA MEDICO: Goodwill + PPA-related customer and technology assets Hongqiao drug pieces: Estimated value of goodwill at the current point after PPA
(EBITDA
Margin)
80 EBITDA Margin
70
60
28%
24%
27%
62.5 billion yen
30%
25%
51.5 billion yen 49.0 billion yen
50
40
30
20
10
0
FY 2022 FY 2023 FY 2024 FY 2025
Revised Plan
20%
15%
10%
5%
0%
Second Mid-Term Plan
(FY 2027)
Revised Targets
Shareholder returnsFor the FY 2025, an increase of 8 yen per share is expected, resulting in a total dividend of 144 yen per share compared to the initial forecast.
Moving forward, the aim is to maintain and improve the DOE, targeting a 5% DOE by the FY2031
5%
3.6% 3.6%
DOE（％）
2.0%
64 yen per share
32
32
2.5%
85 yen per share
50
35
136 yen
per share
68
68
144 yen per share
76
+8 yen per share
68
Year-end dividend
Interim
dividend
FY2022 FY2023 FY2024 FY2025
Forecast (revised)
Long-term management Vision Realization image 34
Inquires about these materials
Corporate Communications Dept.
Investor Relations Group [email protected]
Cautionary items regarding forecasts
The materials and information provided in this presentation contain so-called forward-looking statements. Readers should be aware that the realization of these statements can be affected by a variety of risks and uncertainties and that actual results could differ significantly.
Changes in Japan or other foreign countries related to healthcare insurance systems or regulations set by medical treatment authorities on drug prices or other aspects of healthcare or in interest and foreign exchange rates could negatively impact the Company’s performance or financial position.
In the unlikely event that sales of the Company’s core products currently on the market be halted or should sales substantially decline due to a defect, unforeseen side effect or some other factor, there could be a major impact on the Company’s performance or financial position.
Appendix
Domestic Business: Transition of Unrealized ProfitsTransition of Unrealized Profits
1,350 million yen
890 million yen
690 million yen
740 million yen
Increase (Deterioration of cost)
400 million yen
320 million yen
FY 2024
1Q
FY 2024
2Q
FY 2024
3Q
FY 2024
4Q
FY 2025
1Q
FY 2025
2Q
Factors for increases or decreases in operating profit forecast (compared to the previous year)
＋4.7
(2.4)
(0.6)
(1.7)
Including consolidated impact of Hongqiao drug pieces: (1.6) (including goodwill amortization, etc.)
(5.8)
+0.7
(billion yen)
35.0
40.1
34
FY 2024
Operating
profit
Sales
increase
Crude drugs cost
Raw material
costs
Processing
costs, etc.
Selling, general and administrative expenses
Exchange
rate
FY 2025
Operating profit Revised plan
*Some figures for crude drug costs and processing costs have been revised due to refinement of the analysis 38
Domestic Business: Actual Sales Volume Trends(Rikkunshito, Goshajinkigan)#43 Rikkunshito
■ FY2022 ■ FY2023 ■ FY2024 ■ FY2025
(Ten thousand boxes) 35
+1.0%
+0.9%
30
25
(Ten thousand boxes) #107 Goshajinkigan
+3.4%
+2.5%
Advance orders
25
20
20
15
15
10
1Q 2Q 3Q 4Q
10
１Q ２Q ３Q ４Q
Limited shipping period: August 2022 to April 2023
FY 2022-23: Despite restricting information provision during the limited shipping period and being unable to acquire new cases, the volume remained flat.
FY 2024-25: Aiming for further growth through hospital briefing sessions and web seminars in the cancer field (supportive care).
FY 2022–2023: Since the limited shipping period was long,
recovery after its termination took time.
FY 2024: Q1 decreased due to the impact of advanced orders in Q4 from NHI drug price revision.
FY 2025: Growth including related prescriptions through an approach to nocturia in the elderly field.
39