Fiscal Year Ending March 2027 Second Quarter (Interim) Financial Summary [Japanese GAAP] (Non-consolidated)

Overview of Results

Interim revenue was 4,792 million yen, an expansion of 9.4% year-over-year. However, the Company recorded an operating loss of 3,334 million yen, an ordinary loss of 3,033 million yen, and an interim net loss of 1,811 million yen. Gross profit was 18,311 million yen, down 8.3% year-over-year. Impacts from drug price revisions and trends in selling, general and administrative expenses were factors suppressing profits. By segment, the Pharmaceuticals and Global segments drove growth while Real Estate Leasing remained stable. Gains on sales of investment securities were recorded as extraordinary profit.

Financial Position and Outlook

Total assets are in the 15.7 billion yen range, and the equity ratio remains high at 73.6%. Changes in the asset composition were observed due to a decrease in cash and deposits, increases in inventories, and partial expansion of the Sagami-Oi factory. For the second half, while considering the effects of drug price revisions during the pollen season and planned production line downtime, improvement in cost of sales ratio is expected under total cost accounting. The Company announced no change to its earnings guidance for the fiscal year ending March 2027.