Initiative to make Vietnam a base for expanding the Asian business

「We will focus on rapidly establishing a market for infusion products that began manufacturing and sales at the new plant of Pharmaceutical Joint Stock Company of February 3rd, our Vietnamese subsidiary.」

「In the Asian business, we will work to expand the operations of Pharmaceutical Joint Stock Company of February 3rd and develop markets in ASEAN countries, including Vietnam, through the operation of the new plant. Pharmaceutical Joint Stock Company of February 3rd Plant (Vietnam) Pharmaceutical manufacturing equipment 3,642 2,984 Internal funds and borrowings April 2022 October 2025 New construction」

「During the current consolidated fiscal year, we determined that the performance of Pharmaceutical Joint Stock Company of February 3rd was below its business plan and that its real value had declined significantly. Accordingly, we impaired the carrying value of the subsidiary's shares in the separate financial statements to their real value. Based on Paragraph 32 of Accounting Standards Committee Report No. 7, Practical Guidelines for Capital Consolidation Procedures in Consolidated Financial Statements, revised on 22 March 2024 by the Japanese Institute of Certified Public Accountants, we recorded goodwill amortization of ¥476.992 million as an extraordinary loss. Pharmaceutical Joint Stock Company of February 3rd Plant (Vietnam) Medical Pharmaceuticals business Pharmaceutical manufacturing equipment 3,254 2,683 Internal funds and borrowings April 2022 February 2025 New construction」

「In the rapidly growing Asian region, we are working to put Pharmaceutical Joint Stock Company of February 3rd, our Vietnamese subsidiary (hereinafter, F.T. Pharma), on a growth trajectory at an early stage. With expansion into ASEAN countries in view, we are constructing a new plant in Vietnam and focusing on preparations for launching a new business. Pharmaceutical Joint Stock Company of February 3rd Plant (Vietnam) Planned investment: ¥2,267 million Start: April 2022 Scheduled completion: November 2024」

「In the rapidly growing Asian region, we plan to put Pharmaceutical Joint Stock Company of February 3rd in Vietnam on a growth trajectory at an early stage and develop it into an export hub for ASEAN countries.」

「As part of this effort, Pharmaceutical Joint Stock Company of February 3rd in Vietnam will accelerate the rollout of the Group's products across Asian countries and promote further growth in overseas revenue.」

「In addition to working to strengthen the business base of Pharmaceutical Joint Stock Company of February 3rd in Vietnam, we will focus on expanding sales of the Group's products through the company and pursue growth in overseas revenue.」

「Name of the company involved in the business combination: Pharmaceutical Joint Stock Company of February 3rd. Date of the business combination: 20 September 2016 (the deemed acquisition date is 30 June 2016). The voting rights ratio represented by the additionally acquired shares was 28.89%. The purpose of the additional acquisition was to enable the Group to operate its business in Asia more quickly and efficiently.」

「Pharmaceutical Joint Stock Company of February 3rd, which became a consolidated subsidiary in the previous consolidated fiscal year, had previously been included in the Consumer Healthcare business. However, as part of strengthening the management structure in anticipation of the company's future business expansion, we reviewed the sales management classifications based on detailed product information. From the first quarter of the current consolidated fiscal year, the company's results have therefore been classified into the Medical Pharmaceuticals and Consumer Healthcare reporting segments.」

「In September 2015, we acquired 49% of the outstanding shares of Pharmaceutical Joint Stock Company of February 3rd, a Vietnamese pharmaceutical manufacturing and marketing company, taking the first step toward expanding our business in Asia.」