Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 28, 2022
[Japanese GAAP]
October 14, 2021
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 filing quarterly securities report:
Scheduled date of dividend payment:

Oct. 14, 2021

Preparation of supplementary materials for quarterly financial results:

Yes

Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)

Nov. 11, 2021

(Amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 28, 2022
(March 1, 2021 to August 31, 2021)(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%Six months ended Aug. 31, 2021

58,551

10.6

5,706

3.5

6,836

23.9

5,002

35.4

Six months ended Aug. 31, 2020

52,926

△16.5

5,516

△45.9

5,519

△48.1

3,693

△51.1

(Note) Comprehensive income:Six months ended Aug. 31, 2021

10,156 millions of yen (80.6%)

Six months ended Aug. 31, 2020

5,625 millions of yen (533.7%)

Diluted profit pershare

Profit per share
yenyenSix months ended Aug. 31, 2021

61.20

61.16

Six months ended Aug. 31, 2020

45.22

45.16

(2) Consolidated Financial Position
Total assets

Shareholders’equity ratio

Net assets

Millions of yen

Millions of yen%

As of Aug. 31, 2021

309,583

260,536

83.6

As of Feb. 28, 2021

299,861

253,809

84.1(Reference) Shareholders’ equity:

As of Aug. 31, 2021

258,686 millions of yen

As of Feb. 28, 2021

252,066 millions of yen

2. Dividends
Annual dividends
First quarter

Second quarter

Third quarter

Fiscal year end

TotalyenyenyenyenyenYear ended Feb. 28, 2021

―

41.75

―

41.75

83.50

Year ending Feb. 28, 2022
Year ending Feb. 28, 2022(Forecast)

―

42.00
―

42.00

84.00

(Note) Revisions to the most recently announced dividends forecast:No3. Consolidated Earnings Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 to February 28, 2022)(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

122,900

7.3

10,7000.3

12,700

7.4

9,900

7.0

121.12(Note) Revisions to the most recently announced consolidated forecast:No*Notes(1) Changes in significant subsidiaries during the period(Chages in specified subsidiaries resulting in changes in scope of consolidation): None(2) Apprication of special accounting methods for preparation of quarterly consolidated financial statements: Yes(3) 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

(4) The number of shares outstanding (common stock)1) Total number of shares outstanding at the end of the period (including treasury stock)
As of Aug. 31, 2021
: 85,164,895 shares
As of Feb. 28, 2021
: 85,164,895 shares2) Total number of treasury stock at the end of the period
As of Aug. 31, 2021
: 3,426,856 shares
As of Feb. 28, 2021
: 3,430,483 shares
3) Average number of shares outstanding during the period
Six months ended Aug. 31, 2021
: 81,736,248 shares
Six months ended Aug. 31, 2020
: 81,680,265 shares*Quarterly financial results reports are not subjected to quarterly review.
*Explanation for appropriate use of financial forecasts and other special notes
Among this document, the forecasts based on the plan may changes due to uncertain factors. Therefore, the actual
operating results may differ from the company's view.
Financial settlement briefings for institutional investors and analysts will be held on October 14, 2021. Presentationmaterials of financial results will be posted promptly on the company’s website after the financial settlement briefings.

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

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

Current Second Quarter(As of Aug. 31, 2021)

AssetsCurrent assets
Cash and deposits

114,254

125,682

Notes and accounts receivable - trade39,546

34,102

Securities

21,74322,763Merchandise and finished goods

11,359

10,111

465

569

6,744

6,867

Work in process
Raw materials and supplies
Other

4,290

6,349

Allowance for doubtful accounts

△343

△385

198,061

206,060

Buildings and structures, net

14,18013,940

Other, net

23,17424,427

Total property, plant and equipment

37,35438,368

27

17

Other

1,150

1,485

Total intangible assets

1,178

1,503

Investment securities

54,602

54,948

Other

8,878

8,916

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Sales rights

Investments and other assets

Allowance for doubtful accounts

△214

△214

Total investments and other assets

63,26763,651

101,800

103,522299,861

309,583

Total non-current assets
Total assets

(Millions of yen)

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

Current Second Quarter(As of Aug. 31, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade

7,672

7,875

Electronically recorded obligations - operating

7,127

5,836

Short-term loans payable

1,111

1,111

Income taxes payable

608

1,964

Provision for sales returns
Provision for bonuses

103

116

1,350

1,229

Other

12,082

13,588

Total current liabilities

30,05731,722Long-term loans payable

296

254

Net defined benefit liability

7,928

8,064

Non-current liabilities

Other

7,769

9,004

Total non-current liabilities

15,99417,324

46,05149,046

8,473

8,473

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

2,352

2,356

Retained earnings

233,376

234,971

Treasury shares△11,495△11,484

Total shareholders' equity

232,707234,317

Valuation difference on available-for-sale securities

16,16517,026

Revaluation reserve for land

3,790

3,784

△1,173

3,105

575

451

Accumulated other comprehensive income

Foreign currency translation adjustment
Remeasurements of defined benefit plans

19,35924,369

Share acquisition rights

Total accumulated other comprehensive income

232

234

Non-controlling interests

1,510

1,614

Total net assets
Total liabilities and net assets

253,809260,536

299,861

309,583(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)

Prior Fiscal Year
(Mar. 1, 2020 – Aug. 31, 2020)

Current Fiscal Year
(Mar. 1, 2021 – Aug. 31, 2021)

52,92658,551

Cost of sales

19,577

23,120Gross profit

33,34935,430

Selling, general and administrative expenses

27,83329,723Operating profit

5,516

5,706

Interest income

430

79Dividend income

463

479

Net sales

Non-operating income

Foreign exchange gains

―

526

Other

181

270

1,074

1,356

Total non-operating income
Non-operating expenses

26

Foreign exchange losses

Interest expenses

745―

Share of loss of entities accounted for using equity method

259

151

Other

63

67

1,071

226

5,519

6,836

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets―

6

Gain on sales of investment securities

1652

Total extraordinary income

1659

Extraordinary losses
Loss on disposal of non-current assets

548

Loss on discontinuation of sale―279

Total extraordinary losses

5328

Profit before income taxes

5,515

7,168

Income taxes

1,702

2,022

Profit

3,813

5,145

119

143

3,693

5,002

Profit attributable to non-controlling interests
Profit attributable to owners of parent

Quarterly Consolidated Statements of comprehensive income(Millions of yen)

ProfitPrior Fiscal Year
(Mar. 1, 2020 – Aug. 31, 2020)

Current Fiscal Year
(Mar. 1, 2021 – Aug. 31, 2021)

3,813

5,145

3,319

945

Other comprehensive income
Valuation difference on available-for-sale securities△1,5744,27397△129

Share of other comprehensive income of entities accounted forusing equity method△30△79Total other comprehensive income

1,812

5,011

5,625

10,156

5,522

10,018102138

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

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

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2020 – Aug. 31, 2020) (Mar. 1, 2021 – Aug. 31, 2021)

Cash flows from operating activities
Profit before income taxes

5,515

7,168

Depreciation

1,934

1,974

Increase (decrease) in retirement benefit liability

159

130

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

△4531

△893

△558

Interest expenses

26

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

259

151

Loss (gain) on sales of investment securities△1△652

Loss on discontinuation of sale―279

Decrease (increase) in trade receivables

16,843

6,159

Decrease (increase) in inventories△4,661

1,299

Increase (decrease) in trade payables△5,239△1,499Other, net△4,924△1,274

Subtotal

8,949

13,215Interest and dividends received

1,134

925

△1

△6

△5,200531△724△34,156

14,663

Interest paid
Income taxes refund (paid)
Payments of retirement benefits for directors (and other officers)
Net cash provided by (used in) investing activities
Cash flows from investing activities

429△4,802

Decrease (increase) in short-term investment securities

10,339△503Purchase of property, plant and equipment

Decrease (increase) in time deposits△2,365△2,216

Purchase of intangible assets△75△479

Purchase of investment securities

△186

△119

Proceeds from sales of investment securities

2928

Other, net

56

26

8,198

△7,164

Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Repayments of long-term borrowings△20―△39△41△0△0△3,393△3,413

Dividends paid to non-controlling interests

△115

△43

Other, net△43△72

Purchase of treasury shares
Dividends paid

Net cash provided by (used in) financing activities△3,612△3,572

Effect of exchange rate change on cash and cash equivalents△4802,116

Net increase (decrease) in cash and cash equivalents

8,261

6,041

Cash and cash equivalents at beginning of period

86,99691,354

Cash and cash equivalents at end of period

95,25897,395