Rohto Pharmaceutical : Consolidated Financial Results for the Fiscal Year Ended March 31, 2021

		May 12, 2021
Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
		[Japanese GAAP]
Company name:	ROHTO Pharmaceutical Co., Ltd.	Stock Exchange listing: TSE, First Section
Stock code:	4527	URL: https://www.rohto.co.jp/
Representative:	Masashi Sugimoto, President and COO
Contact:	Masaya Saito, Vice President and Director
Telephone:	81-(0)6-6758-8223

Scheduled date of Annual General Meeting of Shareholders:	June 24, 2021
Scheduled date of filing of Annual Securities Report:	June 25, 2021
Scheduled date of dividend payment:	June 10, 2021
Supplementary materials for financial results:	Yes
Financial results meeting:	Yes (for institutional investors and analysts)

(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)

(1) Consolidated results of operations				(Percentages represent year-on-year changes.)
	Net sales		Operating income		Ordinary income	Profit attributable to
			owners of parent
	Millions of yen		%	Millions of yen	%		Millions of yen	%	Millions of yen	%
Fiscal year ended Mar. 31, 2021	181,287		(3.7)	22,990	(0.4)		23,910	5.2	16,743	8.6
Fiscal year ended Mar. 31, 2020	188,327		2.6	23,085	10.9		22,735	19.8	15,410	57.3

Note: Comprehensive income (Millions of yen):	Fiscal year ended Mar. 31, 2021:	19,794	75.6%
		Fiscal year ended Mar. 31, 2020:	11,275	83.7%
	Basic net income	Diluted net			Ordinary	Operating income
	income per	ROE		income
	per share		to net sales
	share			on total assets
		Yen	Yen	%			%	%
Fiscal year ended Mar. 31, 2021		146.78	146.36	11.7			10.8	12.7
Fiscal year ended Mar. 31, 2020		135.13	134.71	11.4			10.9	12.3

Reference: Equity in earnings of affiliates (Millions of yen):

Fiscal year ended Mar. 31, 2021:	396
Fiscal year ended Mar. 31, 2020:	(1,192)

Note: The provisional accounting treatment for business combinations has been finalized in the current fiscal year. The figures for the fiscal year ended March 31, 2020 have been restated accordingly.

(2) Consolidated financial position

	Total assets	Net assets		Equity ratio	Net assets per share
	Millions of yen	Millions of yen		%	Yen
As of Mar. 31, 2021		225,790	156,612		68.9	1,363.42
As of Mar. 31, 2020		215,644	140,032		64.4	1,217.67
Reference: Shareholders' equity (Millions of yen):	As of Mar. 31, 2021: 155,525	As of Mar. 31, 2020: 138,899

Note: The provisional accounting treatment for business combinations has been finalized in the current fiscal year. The figures for the fiscal year ended March 31, 2020 have been restated accordingly.

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Fiscal year ended Mar. 31, 2021	20,008	(10,237)	(2,347)	52,254
Fiscal year ended Mar. 31, 2020	19,040	(9,405)	(1,603)	44,665

2. Dividends

		Dividend per share				Payout ratio		Dividends
							Total		on
							(consolidated
	1Q-end	2Q-end	3Q-end	Year-end	Total		dividends		Equity
		)
								(consolidated)
	Yen	Yen	Yen	Yen	Yen		Millions of yen	%	%
Fiscal year ended Mar. 31, 2020	-	13.00	-	13.00	26.00	2,965	19.2	2.2
Fiscal year ended Mar. 31, 2021	-	13.00	-	15.00	28.00	3,193	19.1	2.2
Fiscal year ending Mar. 31, 2022	-	15.00	-	15.00	30.00			20.0
(forecast)

3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Percentages represent year-on-year changes.)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per share
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	182,000		0.4	23,100	0.5	23,900	(0.0)	17,100	2.1	149.91

Note 1: From the viewpoint of promoting constructive dialogue for medium-tolong-term corporate value enhancement, we will disclose the earnings forecast for the full year only.

Note 2: As the Company will apply the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29) from the beginning of the fiscal year ending March 31, 2022, the above consolidated earnings forecast is prepared based on such accounting standards.

* Notes

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries resulting in change in scope of consolidation): None
2. Changes in accounting policies and accounting estimates, and restatements
3. 1. Changes in accounting policies due to revisions in accounting standards: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Number of common shares issued

1) Number of shares outstanding at the end of the period (including treasury shares):

As of Mar. 31, 2021:

118,089,155 shares

As of Mar. 31, 2020:

118,089,155 shares

2) Number of shares of treasury shares at the end of the period:

As of Mar. 31, 2021:

4,019,044 shares

As of Mar. 31, 2020:

4,018,988 shares

3) Average number of shares outstanding during the period:

Fiscal year ended Mar. 31, 2021:

114,070,140 shares

Fiscal year ended Mar. 31, 2020:

114,039,721 shares

Reference: Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)

(1) Non-consolidated results of operations							(Percentages represent year-on-year changes.)
	Net sales			Operating income	Ordinary income	Net income
	Millions of yen		%		Millions of yen		%		Millions of yen	%		Millions of yen	%
Fiscal year ended Mar. 31, 2021	101,009		(5.1)		13,018		(1.9)		12,564	(12.6		8,920	27.8
				)
Fiscal year ended Mar. 31, 2020	106,477		2.0		13,264		1.9		14,374	(5.4)		6,978	44.9
	Basic net income	Diluted net income
	per share			per share
			Yen			Yen
Fiscal year ended Mar. 31, 2021			78.20				77.97
Fiscal year ended Mar. 31, 2020			61.19				61.00
(2) Non-consolidated financial position
	Total assets		Net assets			Equity ratio		Net assets per share
	Millions of yen		Millions of yen			%			Yen
As of Mar. 31, 2021	153,277		114,864			74.7		1,003.60
As of Mar. 31, 2020	146,375		106,337			72.4		928.85
Reference: Shareholders' equity (Millions of yen): As of Mar. 31, 2021: 114,481	As of Mar. 31, 2020: 105,954

Note 1: This summary report is not subject to the audit conducted by certified public accountants or audit firms.

Note 2: Cautionary statement with respect to forward-looking statements and other special items

Forecasts regarding future performance in these materials are based on assumptions judged to be valid and informatio n available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual results of operations may differ signifi cantly from the forecasts depending on various factors. For discussion of the assumptions and other factors considered by the Company in preparing the above projections, please refer to page 2 of the attachments "1. Overview of Results of Operations and Other Information, (1) Overview of Results of Operations."

ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for FY3/21

Contents of Attachments
1. Overview of Results of Operations and Other Information	2
(1)	Overview of Results of Operations	2
(2)	Overview of Financial Position	4
(3)	Overview of Cash Flows	5
(4)	Basic Policy of Profit Distribution and Dividends for the Current and Next Fiscal Years	6
2. Basic Approach to the Selection of Accounting Standards	6
3. Consolidated Financial Statements and Major Notes	7
(1)	Consolidated Balance Sheets	7
(2)	Consolidated Statements of Income and Comprehensive Income	9
(3)	Consolidated Statements of Change in Shareholders' Equity	12
(4)	Consolidated Statements of Cash Flows	16
(5)	Notes to Consolidated Financial Statements	18
	Going Concern Assumption	18
	Additional Information	18
	Business Combinations	18
	Segment and Other Information	20
	Per-share Information	24
	Material Subsequent Events	24

1

ROHTO Pharmaceutical Co., Ltd. (4527) Financial Results for FY3/21

1. Overview of Results of Operations and Other Information

(1) Overview of Results of Operations

				(Millions of yen)
	Net sales	Operating income	Ordinary income	Profit attributable
	to owners of parent
Fiscal year ended Mar. 31, 2021	181,287	22,990	23,910	16,743
Fiscal year ended Mar. 31, 2020	188,327	23,085	22,735	15,410
Year-on-year change (%)	(3.7)	(0.4)	5.2	8.6

In the current fiscal year, the severe business environment continued as the global spread of Covid -19 greatly restricted economic activity. In terms of consumer spending, consumer confidence declined further as the outlook for the economy remained uncertain.

Under these circumstances, the Rohto Group has created the slogan of "Connect for Well-being," suggesting people around the world living energetically and happily each day, both physically and mentally, throughout the various stages of their lives. We are endeavoring to further increase corporate value.

In total, net sales decreased 3.7% year-on-year to 181,287 million yen. In Japan, despite a temporary economic recovery, sales fell due to factors including a resurgence in Covid -19 infections and the establishment of a mask- wearing culture. On the other hand, sales of Nitten Pharmaceutical Co., Ltd., which became a subsidiary in March 2020, contributed to an increase. Overseas sales decreased in each region due to the impact of the global spread of Coronavirus pandemic.

Regarding profits, operating income decreased slightly by 0.4% year-on-year to 22,990 million yen due to lower sales and higher R&D expenses, despite an efficient use of selling, general and administrative expenses. Due to the higher dividend income and other factors, ordinary income and profit attributable to owners of parent increased 5.2% to 23,910 million yen and 8.6% to 16,743 million yen, respectively, and both reached record highs.

Results by reportable segment are as follows.

					(Millions of yen)
			Net sales (Sales to customers)
		Fiscal year ended	Fiscal year ended	Year-on-year change	Year-on-year change
		Mar. 31, 2020	Mar. 31, 2021	(Amount)	(%)
	Japan	115,767	115,629	(138)	(0.1)
Reportable	America	9,121	7,687	(1,434)	(15.7)
Europe	8,740	8,149	(590)	(6.8)
segment
Asia	52,971	48,056	(4,915)	(9.3)
	Subtotal	186,601	179,522	(7,078)	(3.8)
Others		1,726	1,764	38	2.2
	Total	188,327	181,287	(7,040)	(3.7)

Japan

Sales to customers decreased 0.1% year-on-year to 115,629 million yen.

Sales of sunscreens, lip balm and other products fell due to people staying at home because of Covid -19 and the establishment of a mask-wearing culture, and demand from foreign tourists visiting Japan was sluggish. On the other hand, "Melano CC" and "Deoco" continued to perform well and sales of "Wakansen" series and "Rohto V5 Grain" increased. In addition, Nitten Pharmaceutical Co., Ltd. contributed to sales.

Segment profit (operating income) fell 1.3% year -on-year to 14,656 million yen. Despite strong sales at Qualitech Pharma Co., Ltd. and efforts to make efficient use of selling, general and administrative expenses, profit declined due to a fall in sales combined with a rise in research and development expenses for prescription drugs.

2