Tsumura: FY2025 Financial Results Briefing

FY2025 Financial Results Briefing

May 13, 2026

TSUMURA &CO.

Today's Content

TSUMURA VISION "Cho-WA" 2031

Towards realization

FY 2025 Financial Results Overview FY 2026 Plan and Earnings Forecast

Goals of the Long-Term Management Vision for 2031

We aim to create conditions in which the Tsumura Group is contributing to the well-being of all by supplying evidence-based products and services, including Kampo and traditional Chinese medicines, that suits factors including the life stage, symptoms, genetic makeup and daily life environment.

Tsumura Group's Value Creation Areas

Three Preventive Measures

Pre-symptomatic treatment (Prevention)

Prevent disease from becoming serious (Prevent change in existing disease)

Expansion of standardization of Kampo treatments Personalization of Kampo treatment

Kampo and Crude

drug formulations

Pre-symptomatic Disease and Science

Establishment of diagnosis and treatment

Kampo and Crude

drug formulations

QOL maintenance and improvement [Kampo supplementary treatment] Dietary therapy and medicinal cuisine [food ingredients + crude drug]

Health promotion [non-pharmaceuticals]

dietary therapy, food-based therapy, medicated cuisine

Value creation in the domain of [treatment]

[Vision for prescription Kampo business 2031] Towards a state that patients can receive

personalized Kampo treatment at any medical institution

Standarziation of Kampo treatment

Expansion of the standardization of Kampo treatments

Inclusion in clinical practice guidelines

/ increase recommendation level

Personalization of Kampo treatment

Responder markers AI-supported Kampo diagnostic system

Evidence-Based Kampo Treatments

Inclusion in clinical practice guidelines

Physicians prescribing 10 or more Kampo

formulations in over 50%

More than 50% of physicians prescribe the "basic prescriptions for treatment areas" based on Kampo medicine

Publication in papers and conference presentations Evidence building

2020~ Towards realization of optimal, individualized medicine through DX solutions

2017~:Scientific elucidation of multicomponent, complex Kampo formulations using KAMPOmics®

FY2001

FY2012

FY2022

FY2031

Value creation in the area of pre-symptomatic diseases (three preventive measures for pre-symptomatic diseases)

Three Preventive Measures

PDS：Pre-symptomatic Disease and Science

Intron retention as an excellent biomarkers states

Kampo medicine has been shown to restore intron retention

Pre-symptomatic treatment (Prevention before pre-symptomatic diseases)

Prevention of aggravation (Prevention of disease progression)

Prevention of

relapses

(Post-healing care)

Scientifically identify the pre-disease state before onset and establish diagnostic methods and Kampo treatment

Predict disease progression and subsequent pathological conditions, and suppress the worsening of infections, frailty, etc.

Improvement of QOL through Kampo supplement treatment for patients, including cancer survivors, to facilitate social reintegration

Value creation in the area of health maintenance

People with pre-symptomatic diseases conditions or illnesses

Dietary taboos

Edible/for

consumption

Classification of traditional Chinese medicinal dietetics

Healthcare

(Prevention)

Nutrition (diet)

Exercise Sleep Stress

Enhance people's inherent natural healing ability to maintain and promote health (Yakushoku Dogen products)

*Classification of Crude Drugs under the Food/Drug Distinction

[Edible/for consumption] Accurately selecting the types of ingredients and the number of meals, etc., according to each situation

It is important to include a wide variety of ingredients and to eat them in appropriate amounts.

[Dietary therapy] Nourishing the body using foods, i.e., dietary regimens for health (for improving digestion,

"Citrus Unshiu Peel"; for

nourishment, "ginseng", etc.)

[Nutritional therapy] Treatment disease or supporting treatment through the effects of ingredients (e.g., "ginger" and "jujube" for improving coldness)

[Medicinal cuisine] Traditional medicinal cuisine is a type of cooking made by adding crude drug to ingredients to treat illnesses; it aims to support disease prevention, pre-symptomatic diseases conditions, and treatment, and to promote

[Dietary prohibitions] Those related to constitution, illnesses, health maintenance, combinations of foods and medicines, and those applicable during pregnancy and breastfeeding, among others.

Crude drugs other than those used exclusively as pharmaceuticals are classified as food ingredients.

Yakushoku Dogen products

[Fureika Soup] [Yojun Soup]

高麗人参スープ 黒にんにくスープ 野菜スープ

[Throat Candy: Takameru Throat Candy] [Ginellia]

Yomeishu Manufacturing's pharmaceutical and Yakushoku Dogen products

Circulating effect

Warming effect

Eliminating effect

Replenishing effect

• Around 1600: Start of production of the medicinal liquor "Yomeishu"

• 1923 (Taisho 12): Establishment of Tenryukan Co., Ltd. (predecessor of Yomeishu Seizo Co., Ltd.)

• 1953 (Showa 28): Year sales began as an over-the-counter drug (Class 2 OTC drug)

Yakushoku Dogen "Healthcare" products

Source: reproduced from Yomeishu Seizo Co., Ltd.'s website and package insert information

Value creation in the China business "treatment" area

Fully Automated Process

Shanghai Hongqiao traditional

Chinese drug pieces Co., Ltd.

Value creation in the China business [Healthcare] domain

Healthcare-preserving Yakushoku Dogen products

TSUMURA Quality

Ping An Dietary Therapy

Yakushoku Dogen Products leveraging Tsumura

Group's crude drug quality strengths

A collaborative product with "Shanghai Jahwa,"

a subsidiary of Ping An Insurance Group of China

Roadmap to realizing TSUMURA VISION "Cho-WA" 2031

First Medium-term Management plan (2022-2024)

Second Medium-term Management plan (2025-2027)

Third Medium-term Management plan (2028-2031)

Prescription Kampo business

Expansion of standardization of Kampo

treatments Personalization of Kampo treatment

Research and development

Personalization of Kampo treatment

Three Important Domains/ Drug-fostering research and G formulations centered

Achievement

More than 10% prescriptions, more than 50% of doctors prescribe

Construction of a clinical data platform

50% of doctors prescribe all basic prescriptions for treatment areas

More than 10% prescriptions, more than 70% of doctors prescribe

Implementation of an automated medical interview system

Social implementation

Women's health / Clinical research Differentiated use of prescriptions /

Pre-symptomatic Disease and Science

Healthcare business

Intron retention research

Depressive disorder/ I·R research

Establishing Diagnostics and Treatments / Social Implementation

OTC Kampo formulations

Expansion of the number of supplied stores and shelf spaces

Establishment of TSUMURA over-the-counter consultation Kampo Realization of shopping venues suited to individuals

Healthcare (Yakushoku Dogen, etc.)

Entry preparation / Test sales

Full-scale entry / New products・Yomeishu

Business expansion and profitability improvement / The third pillar business

China business

Processing / Removal from the negative list

Formulation PF (traditional Chinese medical

products business)

Narrowing down of partners

Political situation / search for negotiations and alliances Business alliances with traditional Chinese medicinal products

companies

Crude drug PF (crude drug, drug pieces,

large health products)

Sales of raw material crude drug/ Increasing awareness of crude drug quality

Automation of systems / "Personalized Medicine" sales

"Personalized Medicine" business

expansion

Research PF

Policy review / Application for classical prescriptions

Expansion of approved/classified classical prescriptions and application items Sales of classical prescriptions / building evidence

DX

Construction of a renewed IT infrastructure

Development and introduction of advanced technologies such as robots

Establishment of the Gunma smart factory infrastructure

Labor productivity

Improvement of productivity in sales, research, and administrative divisions Improving productivity in crude drug and production

departments

Doubling productivity

10

Introduction of the company-based organizational system

• Speeding up decision-making through delegation of authority

• Clarifying responsibility through independent profitability (ROIC)

• Early development of managerial human resources

• Early realization of diversified profit-generating businesses

  The Audit and Supervisory Committee

  Audit and internal control

  Board of Directors

  Group management

  strategy meeting

  Executive Committee

  China business

  Company

  • China business overall

  • Procurement of crude drug and production of Kampo extract powder for the Japan business

  • New businesses in the China market

    Executive Committee

    Prescription pharmaceuticals Company

  • Prescription Kampo formulations

    business

  • Procurement of raw materials, production, pharmaceutical sales, quality, and safety - business planning, operations, and management functions

    Executive Committee

    Healthcare Company

  • Business of over-the-counter Kampo preparations, crude drug preparations, and health-Yakushoku Dogen-medicine products

  • Succession of Yomeishu-related businesses (planned to become a subsidiary)

    R&D unit (affiliated with the Prescription pharmaceutical business)

Today's Content TSUMURA VISION "Cho-WA" 2031 Towards realization

FY 2025 Financial Results Overview

FY 2026 Plan and Earnings Forecast

Business Results for Fiscal 2025

• Sales fell short of the plan in the domestic business, while the China business met the plan.

  All profit indicators achieved the plan

• The sales composition ratio of the China business increased significantly

Ratio to total sales

Domestic business： Prescription Kampo Products

79.9%

China Business:

Crude drug platform 16.3%

Domestic Business:

Healthcare products

(OTC Kampo medicine, etc.) 3.2%

Domestic Business: Others 0.6%

Key Points in Performance

Net sales

192,615

million yen

achievement rate of plan

97.3%

YoY

+6.4%

• Domestic business：Total sales for the 129 prescription Kampo formulations : 153,918 million yen, down 0.1% YoY Total sales of healthcare products (OTC Kampo medicine, etc.) : 6,206 million yen, up 17.4% YoY

• China business Raw material crude drugs, drug pieces, health products, etc. : 31,442 million yen, up 52.4% YoY

ent rate

an

100.6% YoY (12.2)%

+0.6pt YoY (3.9)pt

• Cost ratio: 52.5%

  Vs plan: (1.5) pt (compared with plan: reduction in processing costs)

  YoY: +2.5pt (compared with last year: higher proportion of sales from China operations)

• SG&A expense ratio: 29.2％

Vs. plan: +0.9pt (compared with plan: sales shortfall against plan)

YoY: +1.3pt (compared with last year: increases in salaries and allowances and costs related to information provision)

of plan

Ordinary profit 40,036 million yen achievement rate

• Foreign exchange gains related to loans to overseas subsidiaries: 5,752 million yen

116.0% YoY (5.7)%

Foreign exchange gains were 1,176 million yen

in the same period of the previous year

of plan

*Foreign exchange gain not factored into earnings forecast

Profit

attributable to owners of parent

28,117 million yen achievement rate

115.7% YoY (13.3)%

• Gain on sales of cross-shareholdings ：2,193 million yen, YoY (1,046) million yen

*Gain on sales of cross-shareholdings from the third quarter are not included in the earnings forecast

Factors for changes in operating profit (YoY comparison)

(Million Yen)

+270

40,125

(289)(4,292)

1

(1,012) +417

35,219

Hongqiao drug pieces consolidation impact: +417 million yen

expenses Increase

impact

Excluding Hongqiao drug pieces

Financial condition and cash flow

(Million yen)

+32.6 (1.8)

Cash and cash equivalents Ending balance

Foreign exchange differences, etc.

Financing activities

Investing activities

Operating activities

Cash and cash equivalents Beginning balance

+24.7

(50.3)

(billion yen)

Domestic business:

Sales by prescription of prescription Kampo formulations

Growing formulations

(Million yen)

Domestic Business: Trends in Growth Rates of Shipment Volume and Actual Sales Volume

Although there had been limited shipments, the impact has run its course, and distribution inventory is normalized as of the end of FY2025

Trend of Sales Volume Growth Rate (Shipments and Actual Sales) of

129 Prescriptions of Kampo formulations

(Growth rate)

Actual

sales

Shipment

Increase in distribution inventory due to

4.4%re-imposition of limited shipments

6.9%

Year-end and New Year business days, plus the early rise and

0.4%

0%

(0.5)%

Recovery trend as limited

shipment restrictions are lifted

2.5%

0.3%

(0.1)%

(1.1)%

(0.6)%

2.9%

2.7%

2.2%

0.6%

decline of colds

2.4%

Slowing down due to re-imposition

of limited shipments

(3.3)%

(5.6)%

Distribution inventory

4Qadjustment optimization

18

Domestic business: Actual sales volume trends for 129 prescription

Kampo formulations

Year-on-year growth remained positive,

with actual sales volume in the fourth quarter increasing by 2.4%

(10,000

boxes)

800

129 prescriptions actual sales volume

+2.9%

+2.2%

(10,000

Daily average* actual sales volume

700

+0.6%

+2.4％

boxes)

14

5.2%

3.6%

5.6%4.3%

9.0%

(3.8)%

3.6%

600

500

400

300

200

100

0

１Q ２Q ３Q ４Q

0.4%

12

10

8

6

4

2

0

(2.7)%

2.4%

(2.8)%

1.6%

FY2022 FY2023 FY2024 FY2025

FY2024 FY2025 YoY

*Calculated considering the number of business days per month

19

Domestic Business: Plan variance in actual sales amount for 129 prescription Kampo formulations

Analysis of factors for failure to meet targets

① Cold associated formulations

FY2025

Plan

Plan achievement: 96.5%

①

②

③

➃

FY2025

Actual

In addition to the outbreak of infectious diseases being lower than expected, impact of recovery in the supply of antitussives, expectorants, etc.

Major prescriptions: Bakumondoto, Kakkonto ,etc

② Limited shipment prescriptions

The recovery of prescriptions that were limited shipment in Q3 of last year is slower than expected. Major prescriptions: Ninjin'yoeito,

Yokukansan-Ka-chinpi-hange,etc

③ Women's health

Impact of expansion of competitive new drugs Major prescriptions: Tokisyakuyakusan, Keishibukuryogan,etc

➃ Others (strategic formulations, etc.)

Major prescriptions: Hochuekkito,Rikkunshito,etc

China business: Crude drug platform

• Sales of the crude drug platform increased for both raw crude drugs and drug pieces

• Sales of drug pieces rose significantly following the consolidation of Hongqiao drug pieces

  52.4%

  increase

  Crude drug platform sales

  31,442 million yen

  20,633 million yen

  drug pieces

  raw material crude drug

  371.7%

  increase

  
  
  

  7.5%

  increase

  FY2024 FY2025

  
  
  

  China business: Overview of Shanghai Hongqiao drug pieces PPA (allocation of acquisition cost)

  The main identifiable assets are customer-related assets of 21 billion yen and provisional

  goodwill of 8.7 billion yen

  
  
  

  20,279

  Identifiable assets	Amount (Millions of yen)	Amortization period	Amortization end FY
  Customer-related assets	21,011	25.5 years	FY 2050
  Inventories and others	856	0.5 years	FY 2025
  Other assets	370	10-15 years	FY 2035-2040
  goodwill	8,768	20 years	FY 2045

  Intangible fixed assets

  (Millions of yen)

  (Customer-related assets)

  
  
  

  21,011

  8,768

  Non-controlling interests

  PPA before Provisional goodwill

  Inventories and others

  856

  Other assets

  370

  Reconciliation of the reference balance sheet

  333

  11,059

  After PPA Provisional goodwill 22

  
  
  China business: Operating profit

  • The China business turned profitable as operating profit of the crude drug platform increased significantly following the consolidation of Hongqiao drug pieces

  • Depreciation and amortization expenses after the implementation of the PPA for Hongqiao drug pieces amounted to approximately 1.5 billion, including one-time costs related to inventories and other items

One-time depreciation and amortization expenses for fiscal 2025 only: approximately 0.8 billion yen

Crude drug platform. Operating profit

1,136

Million yen

FY2024

China business Operating profit

(10) million

Intangible assets Amortization of goodwill and other intangible assets

FY2025

Hongqiao drug pieces After PPA implementation Amortization expense:

yen

approximately 1.5 billion yen

China business Operating profit 195 million yen

(After PPA implementation, confirmed goodwill)

Today's Content TSUMURA VISION "Cho-WA" 2031 Towards realization FY 2025 Financial Results Overview

FY 2026 Plan and Earnings Forecast

Introduction of the company system

Clarify the management accountability of Company Presidents

• Establish a management framework by company for PL and ROIC within the first quarter, with disclosure planned

• From fiscal 2027 onward, the management framework will be expanded to include the balance sheet and cash flows.

Consolidated financial statements and ROIC

Prescription pharmaceuticals Company

China business

Company

Healthcare Company

PL/BS/CF

Business for Japan

External sales

business

PL/BS/CF

ROIC

Kei Sugii, Director and

COO

Prescription Pharmaceuticals Company President

PL/BS/CF ROIC

Li Gang, Executive officer

China Business Company President, Chairman/General Manager of Tsumura China Inc.

ROIC

Yasushi Nakagawa, Executive officer Health Care Company President

FY2026 Earnings Forecast

(Note)

Among non-operating income and expenses, foreign exchange gains related to loans and other receivables to overseas subsidiaries are not included in the earnings forecast, as it is difficult to make a reasonable estimation due to fluctuations in foreign exchange rates.

With regard to extraordinary income, a portion of gains on sales of investment

securities is included.

Analysis of Factors Affecting the Change in Operating Profit Forecast FY 2026

Although raw material costs and labor costs are rising, increased sales and cost reductions are expected to result in higher profits

Excluding the impact of the consolidation of Hongqiao drug pieces: (2.0)

(Breakdown)

• Research and development expenses: (0.6)

• Healthcare promotional expenses:(0.4)

• China sales promotion expenses: (0.4)

＋6.2

+0.2

(0.8)

+1.1

(3.9)

(0.6)

(billion yen)

Improved utilization rate of the Tianjin Plant / reduction in processing costs, etc.: +1.8

Reversal effect of PPA-related amortization (inventories, etc.): +0.8

Manufacturing labor costs / expenses: (1.5)

Domestic business: actual sales volume plan for 129 prescription Kampo formulations

Through the phased effects of various measures, we aim to restore the growth pace assumed in the mid-term plan in the second half of the fiscal year

(ten thousand

+Approx. 800,000 boxes (In the second half, at a pace of

1. FY

   Growth pace

   +Approx.

   boxes)

   3,000

   2,500

   +Approx.

   500,000 boxes

   +1 million boxes)

   500,000 boxes

   +4.5%

   +4.0%

   +3.5%

   +3.0%

   +2.5%

   +2.0%

   +1.5%

   +1.0%

   +0.5%

   +0.0%

   +

   +3.0%

2. Effect of new measures

+Approx.

300,000 boxes

2,000

1,500

1,000

500

+1.4%

+0.5%

+2.0%

Growth rate

0

FY 2023 FY 2024 FY 2025 FY 2026

Limited shipment

(Plan)

28

Domestic business: Expansion of Goreisan prescriptions and evidence building

By continuing to capture current prescription needs and building evidence in the cardiorenal

disease area, we aim to create medium- to long-term growth opportunities

Headache Dizziness

Goreisan

Continue acquiring prescription needs due to weather-related illnesses *

Main symptoms of weather-

(10,000

boxes)

200

Goreisan actual sales volume trends

related illnesses

indicated

Fatigue

Shoulder stiffness

The usage rate of Goreisan for weather-related ailments is below 5%

(Refer to MDV data, our company's estimate)

150

Maintain the trend of expanded prescribing through strengthened information-provision activities

+200,000

boxes

+210,000

boxes

Expansion into cardiorenal diseases through building

100 evidence

1. In heart failure

   Large-scale clinical study

   50 Being conducted mainly

   by Kyoto University

   Results to be disclosed in 2027

   0

2. For chronic kidney disease Exploratory clinical trial

Conducted mainly at

Kobe University

Results to be disclosed in 2026

2021 2022 2023 2024 2025 2026 (FY)

(Plan)

Rising expectations and attention regarding the usefulness of Goreisan

*Physical and mental disorders caused by meteorological factors such as changes in atmospheric pressure,

temperature, and humidity 29

Domestic business: Continued efforts focused on priority areas

Measures implemented focusing on priority areas Aiming for continuous expansion of the Kampo market

Cancer area

Women's health

StrengtheningE e-promotion

Cancer Caravan

Accelerate spread of Kampo by creating opportunities for physician-to-physician information sharing through lectures

A project to consult about menstrual issues

Awareness activities on menstrual-related symptoms; promote medical consultations and counseling

Number of participating institutions increasing Over 1,700

*As of the end of March 2026

© 2026 SANRIO CO., LTD. APPROVAL NO. L662092

Large-scale web lecture on women's health

Deliver Kampo information suitable for each specialty area in obstetrics and gynecology nationwide and

Kampo online MR

Providing information to physicians who have not had interviews through interactive communication on the medical platform

[FY 2026 Plan]

• Number of meetings: 600

• Online studio (seminar) Viewers: 6,000

  (times)

  Number of Kampo online MR meetings

  [FY2026 Plan]

  Number of events: 4 in total

  + satellite events

  Expand to areas not covered in

  FY2025

  Main prescriptions

  
  
  

  contribute to improving patients' QOL

  [FY 2026 Plan]

  Kampo Medicine SOS Series for Women's Health Problems

Main

800

600

+150 times

(planned)

prescriptions

Number of events: 4 in total

400

200

(co-hosted with related academic societies)

0

2022 2023 2024 2025 2026

30

Domestic business: Expansion of physicians treatment (of health issues) with standard prescriptions by clinical area

• The Ratio of physicians prescribing basic prescriptions for treatment areas has steadily increased

• Aiming to contribute to realizing medical settings where each person can receive Kampo tailored to them

100%

Trend in the ratio of physicians prescribing 10 or more Kampo formulations and Physicians prescribing basic prescriptions for treatment areas

*Our research and external questionnaire

70%

50.4%

50.3%

13.1%

5.7%

Ratio of physicians prescribing

basic prescriptions for treatment areas

25%

50%

0%

2024

2025

2026

2027

(FY-end)

(Plan) (Plan) 31

Domestic business: Sustainable growth of Rikkunshito

Rikkunshito continues to be listed in ROME V.

Strengthen promotion of usefulness for functional gastrointestinal disorders

*ROME criteria: International diagnostic criteria for functional gastrointestinal disorders

(10,000

of boxes)

120

Trend of actual sales volume of Rikkunshito

Fiscal FY2025:

+8,000 boxes

+51,000 boxes

+150,000

boxes

100

80

60

40

20

0

2016

ROME IV

published

2021

Clinical guidelines for functional digestive diseases

Evidence level: A

May 2026 ROME V

published

(FY)

(Planned)

Clinical study overview: placebo-controlled, double-blind comparative trial in patients with functional gastrointestinal disorders

Functional gastrointestinal disorders :

a disease with high unmet medical needs, as symptoms and underlying causes vary from patient to patient.

Prevalence in Japanese:

11-17% (health check-up population)

32

Domestic business: Expansion of Kampo treatment for sleep disorders

Aim to expand the use of Kampo as a treatment option

for patients with sleep disorders(insomnia)

The number of patients is on the rise

Estimated number of insomnia patients Approximately 25 million*

(Including latent patients)

Due to sleep disorders Economic losses in Japan

Approximately JPY

15 trillion*

On the usefulness of Yokukansan combined with sleep hygiene guidance

Physician-initiated clinical study completed

Challenges

・Comorbidity with diverse background factors / other diseases

(10,000

boxes)

Trends in actual sales quantity of four sleep-related prescriptions

in

treatm

ent ・Dependence on drug treatment and long-term use

300

+200,000

(of health issues)

・Residual drowsiness the day after taking medication

- Difficult to determine which department to see

250

FY25

+ 40,000 boxes

boxes

Institutional arrangements for the designation of "sleep disorders" are planned

Such as "Sleep Disorders Internal Medicine" and

200

2024 2025 2026

(Planned)

(FY)

"Sleep Disorders Psychiatry"

* From Ministry of Health, Labour and Welfare National Health and Nutrition Survey and materials published by the U.S.

think tank RAND Corporation 33

China business: Crude drug platform

Aim to increase the proportion of processed drug pieces slices to over 50% of China business sales and to improve profitability

Crude drug platform sales and operating profit margin

(million yen)

60,000

50,000

40,000

30,000

20,000

10,000

0

11.2%

drug pieces

raw material

・Sold to hospitals and pharmacies as prescription or OTC products

・Business expansion through partnership with Hongqiao drug pieces

・Sell as raw materials to manufacturers of

traditional Chinese medicinal products, etc.

・Superior in quality and price

Increase the number of crude drug items and

Crude drug platform operating profit margin

10.4%

46 billion yen

5.5%

5.2%

31.4 billion yen

2023 2024 2025 2026 (FY)

Expand sales centered on processed drug pieces

(plan)

crude drug

handling volume

China business: Hongqiao drug pieces "Personalized Medicine"

introduction plan

Equipment that fully automates "Personalized Medicine" will be introduced and operational during FY2026

Fully automated processes

FY2026

Planned equipment installation and operation

Order management

blending

Decoction

Decoction

(product)

Liquid Extract Extract powder

Aiming to realize a system that for the first time in the industry, automates the entire process through to the final stage

Second mid-term management plan: numerical targets (FY2027)

Net sales Operating profit

ROE

FY2026

Earnings

forecast

213.6 billion yen

234

Prescription pharmaceuticals

Healthcare

Increase and stabilization of actual sales growth rate due to research and policy effects

Increase in decoction drug pieces sales and profit margin due to operation of the "Personalized Medicine" system

Healthcare product promotion

+ consolidated effect of YOMEISHU SEIZO Co., Ltd.

Improvement of Company ROIC

billion yen

37.5 billion yen

46

billion yen

8.0%

9.0%

China business

Capital investment and depreciation plan

• Technical verification for life-extension operation of certain production equipment at the Ibaraki/Shizuoka Plant has been completed

• By leveling new capital investments, reduce investment amounts by approximately 40 billion yen during the second-phase medium-term plan period

800

(billion yen)

80

600

60

400

40

200

20

0

2022 2023 2024

2025 2026 2027

2028 2029 2030 2031

（FY)

見直し後投資額 削 減分(投資額)

Revised investment amount

Deleted amount (investment)

Revised depreciation expense

EBITDA trend

【Calculation conditions for amortization of goodwill and PPA】

CHINA MEDICO CORPORATION: customer- and technology-related assets from goodwill and PPA Hongqiao drug pieces: goodwill + PPA for customer- and technology-related assets + inventory and other assets

【Depreciation (excluding PPA-related) calculation conditions】

のれん・PPA償 却費

減価償却費（PPA関連除く）

Depreciation (excluding PPA-related items)

EBITDA Margin

Depreciation expense minus amortization of customer- and technology-related assets from PPA

営業利 益

Goodwill Amortization Operating Profit

(EBITDA amount: billion)

80

70

EBITDA率

28%

26% 24%

27%

(EBITDA: percentage)

60

51.3 billion yen

50

40

30

20

10

49 billion yen

52 billion yen

64 billion yen

25%

20%

15%

10%

5%

0 FY2022 FY 2023 FY 2024 FY 2025

FY 2026

(Plan)

FY 2027 0%

(Plan)

Financial leverage, cash allocation (FY2025-FY2027)

Compress capital expenditure and allocate to growth investments such as capital and business alliances; reduce interest-bearing debt through cash flow and balance sheet management

FY2025-FY2027

(at time of mid-term plan formulation)

Cash In Cash Out

FY 2025-2027

(revised)

Cash in Cash out