Consolidated Financial Results for the Fiscal Year Ended February 28, 2022
[Japanese GAAP]
April 7, 2022
Company name:

Hisamitsu Pharmaceutical Co., Inc.

Stock exchange listing:Tokyo, Nagoya, Fukuoka

Securities code:

4530

URL:

https://global.hisamitsu/

Representative:

NAKATOMI Kazuhide, President & CEO

Contact

TAKAO Shinichiro, Managing Director & Executive Officer, Management of Public Relations,
Investor Relatoions

TEL:+81-3-5293-1704

Scheduled date of Annual General Meeting of Shareholders:

May 26, 2022

Scheduled date of dividend payment:

May 27, 2022

Scheduled date of filing annual securities report:

May 27, 2022

Preparation of supplementary materials for financial results:

Yes

Holding of annual financial results meeting:Yes (for institutional investors and analysts, etc.)(Amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)(1) Consolidated Operating Results(Percentages represent year-on-year changes)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Fiscal year 2022

120,193

5.0

9,337

△12.5

12,638

6.8

9,658

4.4

Fiscal year 2021

114,510△18.8

10,671△53.0

11,829

△53.8

9,250

△50.5

(Note) Comprehensive income:Fiscal year 2022

15,883 millions of yen (60.0%)

Fiscal year 2021

9,926 millions of yen (△26.3%)

Diluted profit per
share

Profit per share

Return on equity

Ordinary profit on
total assets

Operating profit to
net sales

yen

yen

%

%

%

Fiscal year 2022

118.92118.84

3.8

4.2

7.8

Fiscal year 2021

113.22113.11

3.7

3.9

9.3

(Reference) Share of profit (loss) of entities accounted for using equity method:

Fiscal year 2022

569 millions of yen

Fiscal year 2021

133 millions of yen(2) Consolidated Financial Position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

Fiscal year 2022

302,858

254,885

83.5

3,171.83

Fiscal year 2021

299,861

253,809

84.1

3,083.98(Reference) Shareholders’ equity:

Fiscal year 2022

252,914 millions of yen

Fiscal year 2021

252,066 millions of yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal year 2022

19,199△13,060△15,189

86,247

Fiscal year 2021

5,289

7,815

△7,18791,354

2. Dividends
Annual dividends
First

Second

Third

Fouth

quarterquarterquarterquarter

Total

Total
dividends

Payout ratio(consolidated)

Dividends to
net assets(consolidate)

yen

yen

yen

yen

yen

Millions of yen%%

Fiscal year 2021

―

41.75

―

41.75

83.50

6,827

73.8

2.7

Fiscal year 2022

―

42.00

―

42.00

84.00

6,784

70.6

2.7

Fiscal year 2023
(Forecast)

―

42.25

―

42.25

84.50

70.7

(Note) Breakdown of annual dividend forecast for the fiscal year 2023
Ordinary dividend

84.00 yen

Commemorative dividend

0.50 yen (A commemorative dividend for the 175th anniversary)

3. Consolidated Earnings Forecast for the Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023)(Percentages represent year-on-year changes)

Net sales
Full year

Operating profit

Profit attributable toowners of parent

Ordinary profit

Profit per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

123,000

2.3

11,10018.9

12,700

0.5

9,700

0.4

119.44(Note) 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 February 28, 2023, the above consolidated earnings forecast is prepared based on suchaccounting standards.

*Notes(1) Changes in significant subsidiaries during the period(Chages in specified subsidiaries resulting in changes in scope of consolidation): None(2) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revision of accounting standards
2) Changes in accounting policies other than 1) above
3) Changes in accounting estimates
4) Restatement: Yes: None: None: None(3) The number of shares outstanding (common stock)1) Total number of shares outstanding at the end of the period (including treasury stock)
Fiscal year 2022:
85,164,895 sharesFiscal year 2021:
85,164,895 shares2) Total number of treasury stock at the end of the period
Fiscal year 2022:
5,427,284 sharesFiscal year 2021:
3,430,483 shares
3) Average number of shares outstanding during the period
Fiscal year 2022:
81,213,132 sharesFiscal year 2021:
81,707,440 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022
(March 1, 2021 to February 28, 2022)(1) Non-consolidated Operating Results(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

90,58586,694

4.5
△21.0

8,615
9,438

△8.7
△53.5

10,608
10,372

2.3
△51.8

7,169
8,342

△14.1
△44.7

Fiscal year 2022
Fiscal year 2021

Profit per share
Fiscal year 2022
Fiscal year 2021

Diluted profit per share
yen

yen

88.25
102.0788.19
101.97(2) Non-consolidated Financial Position
Total assets

Net assets

Shareholders’ equity
ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Fiscal year 2022
Fiscal year 2021

254,330
264,138

222,355
231,247

87.3
87.5

2,784.39
2,825.43(Reference) Shareholders’ equity:

Fiscal year 2022

222,101 millions of yen

Fiscal year 2021

231,015 millions of yen*Financial results reports are not subjected to audit.
*Explanation for appropriate use of financial forecasts and other special notes
The forecasts and other forward looking statements contained in this summary are based on the information currently
available to the Company and certain assumptions considered reasonable by the Company. Therefore, they are notguaranteed to be achieved by the Company. As a result, the forecasts of operating results may differ significantly from theactual operating results due to various factors.

Consolidated Financial Statements(1) Consolidated Balance sheets(Millions of yen)

Prior Fiscal Year End(As of Feb. 28, 2021)

Current Fiscal Year End(As of Feb. 28, 2022)

AssetsCurrent assets
Cash and deposits

114,254

129,290

Notes and accounts receivable - trade39,54638,505

Securities

21,743

13,141

Merchandise and finished goods

11,359

8,919

465

438

6,744

7,055

Work in process
Raw materials and supplies
Other

4,290

3,219

Allowance for doubtful accounts

△343

△393

198,061

200,176

46,05947,182△31,879△33,276

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

14,18013,905

Machinery, equipment and vehicles

41,79843,177△35,636△36,905

6,162

6,272

Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net

11,838

11,822△9,761△9,681

2,077

2,140

11,897

11,956

598

1,645

△384

△497

214

1,147

Construction in progress

2,822

3,646

Total property, plant and equipment

37,35439,069

Sales rights

27

442

Software

206

156

Other

944

726

1,178

1,326

Investment securities

54,60252,519Net defined benefit asset

3,895

5,112

Intangible assets

Total intangible assets
Investments and other assets

Deferred tax assets

1,047

1,153

Other

3,935

3,714

Allowance for doubtful accounts

△214

△214

Total investments and other assets
Total non-current assets
Total assets

63,26762,286

101,800

102,681299,861

302,858(Millions of yen)

Prior Fiscal Year End(As of Feb. 28, 2021)

Current Fiscal Year End(As of Feb. 28, 2022)

Liabilities
Current liabilities
Notes and accounts payable - trade

7,672

7,533

Electronically recorded obligations - operating

7,127

5,692

Short-term loans payable

1,111

1,071

Lease obligations

101

301

Accounts payable - other

6,634

6,685

Income taxes payable

608

2,938

Provision for sales returns

103

135

Provision for bonuses

1,350

1,363

Other

5,346

6,473

Total current liabilities

30,05732,160Long-term loans payable

296

219

Lease obligations

94

869

Deferred tax liabilities for land revaluation

1,660

1,801

Deferred tax liabilities

3,465

2,369

Net defined benefit liability

7,928

8,216

Other

2,548

2,335

Total non-current liabilities

15,994

15,812

46,05147,972

8,473

8,473

Non-current liabilities

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

2,352

2,356

Retained earnings

233,376

236,192

Treasury shares△11,495△19,527

Total shareholders' equity

232,707

227,495

16,165

15,070

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

3,790

3,641

△1,173

5,633

575

1,073

19,35925,419

232

254

1,510

1,717

253,809

254,885

299,861

302,858

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2020 – Feb. 28 2021) (Mar. 1, 2021 – Feb. 28 2022)

Net sales

114,510120,193

Cost of sales

45,33750,126Gross profit

69,17370,067

Selling, general and administrative expenses

58,50160,730Operating profit

10,671

9,337

Interest income

563

153

Dividend income

843

905

Foreign exchange gains

―

1,276

Share of profit of entities accounted for using equity method

133

569

Non-operating income

Other

520

548

2,061

3,453

10

20

Foreign exchange losses

542―

Loss on cancellation of insurance policies

244―

Total non-operating income
Non-operating expenses
Interest expenses

Cost for idle operation

―

77

Other

106

54

Total non-operating expenses

903

152

11,82912,638

Ordinary profit
Extraordinary income
Gain on disposal of non-current assets

218

7

Gain on sales of investment securities

188

653

National subsidies

2

―

408

660

Loss on disposal of non-current assets

40

62

Loss on discontinuation of sale―279

Total extraordinary income
Extraordinary losses

40

342

Profit before income taxes

Total extraordinary losses

12,197

12,956

Income taxes - current

2,382

3,727

Income taxes - deferred

381

△633

Total income taxes

2,764

3,093

Profit

9,433

9,862

182

204

9,250

9,658

Profit attributable to non-controlling interests
Profit attributable to owners of parent(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2020 – Feb. 28 2021) (Mar. 1, 2021 – Feb. 28 2022)

Profit

9,433

9,862

4,070

△1,065―△143

Other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land

△3,901

6,761

Remeasurements of defined benefit plans, net of tax

277

475

Share of other comprehensive income of entities accounted forusing equity method

46△7Foreign currency translation adjustment

Total other comprehensive income
Comprehensive income

492

6,020

9,926

15,883

9,771

15,724

154

158

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

(3) Consolidated Statements of Changes in Shareholders’ Equity
For the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)(Millions of yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at March 1, 2020

8,473

Retainedearnings

2,272

Total
shareholders’equityTreasuryshares230,929△11,730

229,945

Changes in items during period
Dividends of surplus
Profit attributable to owners of parent△6,803△6,803

9,250

9,250

Purchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period

79

△5

△5

240

320
―

Balance at February 28, 2021

―

79

2,447

234

2,762

8,473

2,352

233,376△11,495

232,707(Millions of yen)

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve for
sale
land
securities

Balance at March 1, 2020

12,047

3,790

Total
Share
RemeasureForeign
accumulated acquisition
ments ofcurrency
otherrightsdefinedtranslation
comprehensiadjustment benefit plans
ve income

2,700

299

18,838491

Noncontrollinginterests

Total net
assets

1,470

250,746

Changes in items during period△6,803

Dividends of surplus
Profit attributable to owners of parent

9,250

Purchase of treasury shares△5

Disposal of treasury shares
Net changes in items other thanshareholders’ equity

320
4,118

―

△3,873

276

520

△259

39

300

Total changes of items during period

4,118

―

△3,873

276

520

△259

39

3,062

Balance at February 28, 2021

16,1653,790△1,173575

19,359232

1,510

253,809

For the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)(Millions of yen)

Shareholders’ equity
Capital stock
Balance at March 1, 2021

8,473

CapitalsurplusRetainedearnings

2,352

Treasuryshares

233,376△11,495

Total
shareholders’equity232,707

Changes in items during period
Dividends of surplus
Profit attributable to owners of parent△6,847△6,847

9,658

9,658

6

6

Reversal of revaluation reserve for land
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity
Total changes of items during period△8,044△8,044

13

16

3

―

Balance at February 28, 2022

―

3

2,816

△8,031△5,212

8,473

2,356

236,192△19,527

227,495(Millions of yen)

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve for
sale
land
securities

Balance at March 1, 2021

16,165

3,790

Total
Share
Foreign
Remeasureaccumulated acquisition
currency
ments ofotherrightstranslation
definedcomprehensiadjustment benefit plans
ve income△1,173575

19,359232

Noncontrollinginterests

Total net
assets

1,510

253,809

Changes in items during period△6,847

Dividends of surplus
Profit attributable to owners of parent

9,658

Reversal of revaluation reserve for land

6
△8,044Purchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity

16△1,095

△149

6,807

498

6,060

21

206

6,288

Total changes of items during period△1,095

△149

6,807

498

6,060

21

206

1,076

Balance at February 28, 2022

15,070

3,641

5,633

1,073

25,419254

1,717

254,885

(4) Consolidated Statements of Cash Flows
Year ended February 28, 2021 and February 28, 2022
(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2020 – Feb. 28 2021) (Mar. 1, 2021 – Feb. 28 2022)

Cash flows from operating activities
Profit before income taxes

12,197

12,956

Depreciation
Increase (decrease) in net defined benefit liability

4,079

4,321

336

231

Increase (decrease) in provision for bonuses

△182

△22

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for sales returns

28

34

△24

32

△1,406△1,058Loss (gain) on cancellation of insurance policies

244―

Interest expenses

10

20

Foreign exchange losses (gains)

84

△932

Share of loss (profit) of entities accounted for using equity method

△133

△569

Loss (gain) on sales of investment securities

△188

△653

Loss (gain) on disposal of non-current assets

△177

55

Interest and dividend income

Subsidy income△2―

Loss on discontinuation of sale

―

279

8,955

2,191

△4,325

3,073

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in other current assets△1,507295

Increase (decrease) in notes and accounts payable - trade△3,812△2,196

Increase (decrease) in other current liabilities△1,864653

Other, net

△701

△430

Subtotal

11,60918,282

Interest and dividend income received

1,734

1,446

△9

△20

△7,320

△505

△724

△3

5,289

19,199Interest expenses paid
Income taxes paid
Payments of retirement benefits for directors (and other officers)
Net cash provided by (used in) operating activities

(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2020 – Feb. 28 2021) (Mar. 1, 2021 – Feb. 28 2022)

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment△178△11,007△3,341△3,610

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

642

37

△47

△583

Decrease (increase) in short-term investment securities

9,715

1,498

Purchase of investment securities

△191

△340

Proceeds from sales and redemption of investment securities

258

931

Collection of loans receivable
Proceeds from cancellation of insurance funds

2

2

953

11

2

―

7,815

△13,060

Increase (decrease) in short-term loans payable

△100

△40

Repayments of long-term loans payable

△69

△77

Dividends paid to non-controlling interests

△115

△44

△2

△8,043△6,806△6,839△94△144

Net cash provided by (used in) financing activities△7,187△15,189

Effect of exchange rate change on cash and cash equivalents△1,5593,944

Net increase (decrease) in cash and cash equivalents

4,357△5,106

Cash and cash equivalents at beginning of period

86,996

91,254

Cash and cash equivalents at end of period

91,35486,247

Subsidies received
Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares
Cash dividends paid
Other, net