Financial Overview for Fiscal Year Ended March 31, 2012

Yutaka KobayashiPresident & Chief Operating OfficerKobayashi Pharmaceutical Co., Ltd.

May 7, 2012

2

Quake-hit Sendai Kobayashi and its Recovery

March 11 The Great East Japan Earthquake struck.Production lines stopped.Supply of water and electricity was restored Trial production started. Production was suspended again due to a powerful aftershock. Operation resumed. Production of all products returned to normal.

March 31

April 1 April 7

April 14 June

Steps toward recovery

3

Impacts of the Great East Japan Earthquake on Business Performance

Energy-saving awareness was heightened. Great demand was marked earlier than the

previous year. Summer was cooler than the previous year. Sales were lower in July and Aug than the

previous year.

Sendai Kobayashi was hit by the earthquake.

Distribution quota system was introduced for some products.

Sales promotion began from 2Q. Initial sales targets

were achieved.

Heightened energy-saving awareness continued during the winter.

Demand increased due to the severe winter. Few products were returned due to the

prolonged cold period.

Year-end sales promotion in shops (V5000) Sales of Bluelet and Oheya-Shoshugen

increased.

Prod

ucts

for

cool

ing

Deod

orizi

ng ai

r fre

shen

ers

First Half (April – Sept) Second Half (Oct – March)

Compared witha year earlier: +19%

Compared witha year earlier: +12.5%

Compared witha year earlier: -6.6%

Compared witha year earlier: +1.0%

Body

war

mer

s De

odor

izing

air

fresh

ener

s * Sales of deodorizing air fresheners for the year: Down 3.3% from a year earlier

4

Report on Reconstruction Assistance Activities

One-Yen Empathy Campaign toSupport Eastern Japan

Distributed the donated ¥300 million to 10 municipalities. Ishinomaki, Rikuzen-Takata, Otsuchi, Kesennuma, Kamaishi,Higashi-Matsushima, Minami-Sanriku, Onagawa, Yamada, Yamamoto

Donation of ¥1 for each Kobayashi Pharmaceutical product sold between June 1 and March 31

Purchased playground equipment for nursery centers/kindergartens.

Ishinomaki CityPaid part of the construction costs

for temporary swimming pools.

Higashi-Matsushima City Paid part of the reconstruction costs for public health centers.

Kesennuma City

We will continue with our activities to assist with reconstruction this year. (Details are under consideration.)

5

Highlights ofConsolidated Financial Results

FY ended March 2011 FY ended March 2012 Increase (decrease)

Amount Margin Amount Margin Amount Percentage

SalesMillion yen

130,824%

---Million yen

131,166％

---Million yen

342％

0.3

Gross profit 74,640 57.1 76,531 58.3 1,891 2.5

Operating income 18,620 14.2 19,298 14.7 677 3.6

Ordinary income 19,010 14.5 20,092 15.3 1,082 5.7

Net income 9,335 7.1 11,726 8.9 2,390 25.6

EPS (yen) 227.98 --- 286.36 --- 58.38 25.6Dividend (yen) 66 --- 78 --- 12 18.2

Net income increased for the 14th consecutive fiscal year. Dividend per share grew for the 13th consecutive fiscal year in real terms.

6

Changes in Consolidated Results

1,3111,308

0

500

1,000

1,500

2,000

2,500

3,000

FY endedMarch2008

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

186 19214.2 14.7

0

50

100

150

200

250

FY endedMarch 2008

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

0

3

6

9

12

15Operating income

Operating margin

Since the 4Q of FY ended March 2008, the wholesale business has been excluded from the scope of consolidation. The new accounting standards have been applied since FY ended March 2009. (Loss on disposal of inventory is included in cost of sales.)

Sales Operating income (100 million yen) (100 million yen) (%)

Up 0.3% Up 3.6%

7

Increase (Decrease) inOperating Income

192

15

186

4

-17

8

-4

0 50 100 150 200 250

Operating income for FY ended March 2012

Decrease in other SGA expenses

Sales promotion & advertising expenses

Increase in profits due to sales increase, etc.

Rise in raw material prices

Cost reduction efforts

Operating income for FY ended March 2011

(100 million yen)

Operating income increased by 670 million yen (3.6%) despite aggressive marketing investments to promote brand awareness and enhance in-store sales, due to an increase in sales of higher-margin products and a reduction in manufacturing costs.

8

Consumer Products Business

9

Changes in Sales andOperating Income

1,1241,107

0

500

1,000

1,500

FY endedMarch 2008

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

189 183

17.116.3

0

50

100

150

200

250

300

FY endedMarch 2008

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

0

5

10

15

20Operating incomeOperating margin

Sales Operating income (100 million yen)

(100 million yen) (%)

Mail-order business became an independent segment in FY ended March 2011.

Up 1.5%

Down 3.4%

10

Sales by Product Category

155

91

45

297

143

162

229

148

88

47

307

140

155

219

0 50 100 150 200 250 300 350

Body warmers

Food products

Household sundries

Deodorizing air fresheners

Sanitary products

Oral hygiene products

Pharmaceutical products

FY ended March 2011

FY ended March 2012

Up 4.7%

Up 4.4%

Down 4.3%

Up 4.5%

Up 1.9%

Down 3.3%

(100 million yen)

Up 2.5%

11

New Product Contribution Rate

1721

5.3 5.1

18.0 15.3

0

10

20

30

40

FY endedMarch 2005

FY endedMarch 2006

FY endedMarch 2007

FY endedMarch 2008

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

0

10

20

30

40New products First yearFirst 4 years total

(Number of product items) (%)

Although 17 new products were launched, their contribution rate remained low.

12

Changes inOverseas Business Results

8178

0

20

40

60

80

100

FY endedMarch2008

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

2.51.9

-6

-4

-2

0

2

4

6

FY endedMarch2008

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

Sales Operating income/loss(after goodwill amortization)

(100 million yen) (100 million yen)

Up 4.8%

Sales, primarily of body warmers and Netsusama Sheet, expanded.

13

Mail-Order Business

14

Changes in Sales and Operating Income/Loss

98 103

0

30

60

90

120

FY endedMarch 2008

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

1.3

3

-5

0

5

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

Sales Operating income/loss (100 million

yen)

(100 million yen)

Up 5.1%

Partly due to the impact of the Great Earthquake, sales growth slowed down.

Down 57.4%

15

Medical Devices Business

16

Changes in Sales andOperating Income

104121

0

50

100

150

FY endedMarch2008

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

2.5 2.9

-6

-4

-2

0

2

4

6

FY endedMarch2008

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

Sales Operating income/loss (100 million yen) (100 million yen)

Up 16.0%

Down 14.0%

Kobayashi Medical went ahead with selection and concentration of its business domains. eV assigned all its shares on July 31.

17

Sales Breakdown by Division & by Business Domain for Kobayashi Medical

109

102

104

89

0

30

60

90

120

KobayashiMedical

eV Other

FY endedMarch 2011FY endedMarch 2012

6

44

53 54

1

35

0

20

40

60

Operatingtheater

Orthopedics Brainsurgery/ENT

FY endedMarch 2011FY endedMarch 2012

Breakdown by division Breakdown of Kobayashi

Medical by business domain (100 million yen) (100 million yen)

Up 2.8%

Down 53%

Down 20.3%

Down 12.2%

Kobayashi Medical went ahead with selection and concentration of its business domains in order to focus on limited product items.

18

Forecasts for Fiscal Year Ending March 2013

19

Highlights of ConsolidatedFinancial Results

FY endedMarch 2012

FY endingMarch 2013 Increase (decrease)

Amount Margin Amount Margin Amount Percentage

SalesMillion yen

131,166%

---Million yen

132,000%

---Million yen

833%

0.6

Gross profit 76,531 58.3 78,100 59.2 1,568 2.0

Operating income 19,298 14.7 20,000 15.2 701 3.6

Ordinary income 20,092 15.3 20,900 15.8 807 4.0

Net income 11,726 8.9 12,500 9.5 773 6.6

EPS (yen) 286.36 --- 305.26 --- 18.90 6.6Dividend (yen) 78 --- 78 --- 0 0.0

20

Changes in Consolidated Results

1,3201,311

0

500

1,000

1,500

2,000

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

FY endingMarch2013

estimate

192 200

14.7 15.2

0

50

100

150

200

250

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

FY endingMarch 2013

estimate

0

5

10

15

20Operating income

Operating margin

Sales Operating income (%)

Up 0.6% Up 3.6%

(100 million yen) (100 million yen)

21

Changes in Consolidated Results(excluding the impact of Kobayashi Medical)

1,320

1,236

0

500

1,000

1,500

2,000

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

FY endingMarch2013

estimate

187 200

15.2 15.7

0

50

100

150

200

250

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

FY endingMarch 2013

estimate

0

5

10

15

20Operating incomeOperating margin

（％）

Up 6.8% Up 6.6%

* Sales and operating income for FY ended March 2012, excluding the results for Kobayashi Medical between June 2011 and March 2012

* 7.5 billion yen * 0.5 billion yen

Sales Operating income (100 million yen) (100 million yen)

22

Increase (Decrease) in Operating Income

200

13-5.4

192

8

-1511

-4

0 50 100 150 200 250

Operating income for FY ending March 2013

Decrease in other SGA expenses

Sales promotion & advertising expenses

Increase in profits due to sales increase, etc.

Rise in raw material prices

Cost reduction efforts

Impact of Kobayashi Medical

Operating income for FY ended March 2012

(100 million yen)

Operating income increased by 700 million yen (3.6%) despite aggressive marketing investments to acquire new customers in the mail-order business and promote brand awareness in overseas businesses, due to an increase in sales of higher-margin products and a reduction in manufacturing costs.

23

Consumer Products Business

24

Changes in Sales and Operating Income

1,1911,124

0

500

1,000

1,500

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

FY endingMarch2013

estimate

183 193

16.3 16.2

0

50

100

150

200

250

300

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

FY endingMarch 2013

estimate

0

5

10

15

20Operating incomeOperating margin

（％）

Mail-order business became an independent segment in FY ended March 2011.

Up 5.9%

Up 5.4%

Sales Operating income (100 million yen) (100 million yen)

25

Sales by Product Category

186

95

45

307

150

168

240

155

91

45

297

143

162

229

0 50 100 150 200 250 300 350

Body warmers

Food products

Household sundries

Deodorizing airfresheners

Sanitary products

Oral hygiene products

Pharmaceuticalproducts

FY ended March 2012

FY ending March 2013estimate

Up 3.7%

Up 20%

Up 4.8%

Up 4.9%

(100 million yen)

Up 4.4%

Up 3.4%

26

Measures to Enhance New Product Development Capabilities

Promote development of products that satisfy diverse consumer needs

<Objectives> 1) Development beyond existing

categories2) Creation of new development

themes

Aiming to improve stable contribution rate of new products

Daily Products Dept.

Marketing Dept. Deodorizing/Air Fresheners G

Cleaning/Consumer Products G

Hygiene/Skin Care G

New Product Development G

27

Measures to Enhance Kampo Herbal Medicine Domain

Seek independent procurement of crude drug materials

<Objectives>1) Stable supply of crude drug

materials2) Reduction of crude drug materials

costs

Aiming to achieve own stable procurement of Kampo herbal extracts

Manufacturing Division

Future Technology Development Dept.

Purchasing Dept.

Quality Control Dept.

Business Promotion Dept.

Overseas Production Strategies Dept.

Osaka Plant

Kampo Technology Development Dept.

28

Measures to EnhanceOverseas Businesses

1) Acquire Grabber Inc.To gain 50% share of body warmers in North America 81

120

1.9

5

0

20

40

60

80

100

120

140

FY endedMarch 2009

FY endedMarch 2010

FY endedMarch 2011

FY endedMarch 2012

FY endingMarch 2013

estimate

-5

0

5

10

Sales and Operating Income/Loss (100 million yen)

Up 48.1%

(100 million yen)

FY ending March 2015Sales target: 20.0 billion yen

2) Construct a new plant in China (Anhui Province)To expand demand in China and Southeast AsiaShanghai Plant is for sale to Japan

29

Mail-Order Business

30

Changes in Sales and Operating Income/Loss

103

130

0

50

100

150

FY endedMarch2009

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

FY endingMarch2013

estimate

4

1.3

-5

0

5

FY endedMarch2010

FY endedMarch2011

FY endedMarch2012

FY endingMarch2013

estimate

SalesOperating

Income/Loss (100 million yen) (100 million yen) Up 25.2%

Up threefold

31

Measures to Acquire New Customers

PC website

Mobile website

FY ending March 2015Sales target: 20.0 billion yen

OpenMay 7

1) Enhance advertising through TV and web2) Develop a mobile website3) Develop new categories of pharmaceutical

products

32

Shareholder Returns Shareholder Returns

33

Changes in Dividends and Payout Ratios

787866

25.627.2

0

20

40

60

80

100

FY endedMarch 1999

FY endedMarch 2001

FY endedMarch 2003

FY endedMarch 2005

FY endedMarch 2007

FY endedMarch 2009

FY endedMarch 2011

FY endingMarch 2013

estimate

0

10

20

30

40

Amount of dividend(left-hand scale)Dividend payout ratio(right-hand scale)

(Yen) (%)

34