NIHON CHOUZAI : Results of Operations for the First Quarter of the Fiscal Year Ending March 31, 2023

(Tokyo Stock Exchange, Prime Market / Stock code: 3341)

Results of Operations for the First Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 to June 30, 2022)

July 29, 2022

©︎2022 NIHON CHOUZAI Co., Ltd. All rights reserved.

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Financial

Highlights

©︎2022 NIHON CHOUZAI Co., Ltd. All rights reserved.

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1	Financial Highlights

Consolidated

Results

Dispensing

Pharmacy

Business

Pharmaceutical

Manufacturing

and Sales

Business

Medical

Professional

Staffing and

Placement

Business

While net sales rose on the back of solid results in the dispensing pharmacy business, profits were down mainly due to the impact of NHI drug price revisions and shipment adjustments in the pharmaceutical manufacturing and sales business.

While affected by the revision of medical fees and NHI drug prices in April this year, net sales and profits increased due to steady growth in the number of prescriptions filled and steady store openings in the previous and current fiscal years.

Net sales and profits decreased despite brisk sales of drugs newly listed in the NHI price list, mainly because sales prices of existing products were reduced due to drug price revisions in April 2022 and the impact of product shipment adjustments following a fire at a contract logistics center in West Japan.

Despite the continuing impact of the Covid-19 pandemic, net sales and profits increased due to year-on-year growth in the mainstay staffing and placement business for pharmacists and expanded results in physician placement, including Covid-19vaccination-related services.

©︎2022 NIHON CHOUZAI Co., Ltd. All rights reserved.

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1	Financial Highlights

Consolidated Statement of Income

Despite the continuing impact of the pandemic, net sales increased 4.0% YoY due to the contribution of the dispensing pharmacy business, but operating profit decreased 4.8% YoY due to the impact of the NHI price revision in April 2022 and shipment adjustments in the pharmaceutical manufacturing and sales business. However, operating profit increased 346.1% compared to the

forecast.
1QFY3/21	1QFY3/22	1QFY3/23	1QFY3/23	ChangeVs.	Vs.	YoYgrowth
（Millionsofyen）
Results	Results	Forecast	Results	Forecast	Forecast	rate
Net sales	68,306	71,851	76,200	74,709	(1,490)	(2.0%)	4.0％
Cost of sales	57,343	59,380	63,500	61,928	(1,571)	(2.5%)	4.3％
Gross profit	10,962	12,471	12,700	12,780	80	0.6%	2.5％
% to sales	16.0%	17.4%	16.7%	17.1％	0.4pt	―	―
SG&A expenses	10,533	11,534	12,500	11,888	(611)	(4.9%)	3.1％
% to sales	15.4%	16.1%	16.4%	15.9％	(0.5pt)	―	―
Consumption taxes
4,897	5,079	5,500	5,420	(79)	(1.4%)	6.7％
R&D expenses	654	905	800	702	(97)	(12.2%)	(22.4％)
Operating profit	429	936	200	892	692	346.1%	(4.8％)
% to sales	0.6%	1.3%	0.3%	1.2％	0.9%	―	―
Ordinary profit	337	993	200	913	713	356.9%	(8.0％)
% to sales	0.5%	1.4%	0.3%	1.2％	0.9%	―	―
Profit attributable to owners of parent	356	427	(100)	391	491	―	(8.5％)
% to sales	0.5%	0.6%	―	0.5％	―	―	―
EBITDA	2,363	2,929	2,400	3,002	602	25.1％	2.5％

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©︎2022 NIHON CHOUZAI Co., Ltd. All rights reserved.

1	Financial Highlights

Consolidated Balance Sheet

Changes in assets primarily consisted of an 8.9 billion yen increase in Merchandise and finished goods. Changes in liabilities mainly consisted of a 10.5 billion yen increase in Accounts payable-trade. Net interest-bearing debt of 29.4 billion yen was at its lowest since FY3/12, contributing to increased financial stability.

	EndofMar.2021	EndofMar.2022	EndofJun.2022	YoYchange	YoYchange
（Millions of yen）	(FY3/21)	(FY3/22)	(1QFY3/23)	(%)
Currentassets	89,246	81,651	94,695	13,044	16.0％
Merchandiseandfinishedgoods	23,139	23,024	31,979	8,954	38.9％
Non-currentassets	97,015	97,102	100,645	3,542	3.6％
Property, plantandequipment	64,785	64,025	63,925	(99)	(0.2％)
Intangible assets	18,952	18,969	20,285	1,316	6.9％
Investmentsandotherassets	13,277	14,107	16,434	2,326	16.5％
Totalassets	186,262	178,753	195,341	16,587	9.3％
Currentliabilities	87,720	78,931	91,089	12,157	15.4％
Accounts payable-trade	44,044	48,513	59,066	10,553	21.8％
Non-currentliabilities	48,673	46,944	51,354	4,409	9.4％
Long-termloanspayable	42,997	41,531	45,070	3,539	8.5%
Totalliabilities	136,394	125,876	142,444	16,567	13.2％
Totalnetassets	49,868	52,876	52,897	20	0.0％
Shareholders' equity	49,868	52,876	52,897	20	0.0%
Equityratio	26.8%	29.6％	27.1％	(2.5pt)	―
Netinterest-bearingdebt	40,325	31,054	29,499	(1,555)	(5.0%)

©︎2022 NIHON CHOUZAI Co., Ltd. All rights reserved.

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