Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 29, 2024
[Japanese GAAP]
October 6, 2023
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

ISOBE Yuichi, Excective Officer, Department General Manager of Corporate Strategy Planning andBusiness Development

TEL:+81-3-5293-1704

Scheduled date of filing quarterly securities report:

Oct. 10, 2023

Scheduled date of dividend payment:

Nov. 7, 2023

Preparation of supplementary materials for quarterly financial results:

Yes

Holding of quarterly 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 Second Quarter of the Fiscal Year Ending February 29, 2024
(March 1, 2023 to August 31, 2023)(1) Consolidated Operating Results(Percentages represent year-on-year changes)
Net sales

Operating profit

Millions of yen%Six months ended Aug. 31, 2023

66,97712.3

Six months ended Aug. 31, 2022

59,6191.8(Note) Comprehensive income:Millions of yen%

Millions of yen

8,396

70.9

11,640

31.2

8,417

29.4

4,913

(13.9)

8,870

29.7

6,504

30.0

Six months ended Aug. 31, 2023

21,400 millions of yen [4.2％]

Six months ended Aug. 31, 2022

20,546 millions of yen [102.3％]

Profit per share

Profit attributable toowners of parent

Ordinary profit%

Diluted profit pershareyenyen

Six months ended Aug. 31, 2023

108.34108.23Six months ended Aug. 31, 2022

81.58

81.51

(2) Consolidated Financial PositionTotal assets

Shareholders’equity ratio

Millions of yen

Millions of yen%344,300

275,108

79.2

313,917

258,408

81.6

As of Aug. 31, 2023
As of Feb. 28, 2023
(Reference) Shareholders’ equity:

Net assets

As of Aug. 31, 2023

272,519 millions of yen

As of Feb. 28, 2023

256,105 millions of yen

Millions of yen%

2. Dividends
Annual dividends
First quarter

Second quarter

Third quarter

Fouth quarter

TotalyenyenyenyenyenYear ended Feb. 28, 2023

―

42.25

―

42.25

84.50

Year ending Feb. 29, 2024

―

42.50
―

42.50

85.00

Year ending Feb. 29, 2024
(Forecast)(Note) Revisions to the most recently announced dividends forecast:No

3. Consolidated Earnings Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 to February 29, 2024)(Percentages represent year-on-year changes)

Net sales
Full year

Operating profit

Millions of yen%

Millions of yen

132,300

3.1

11,800

Profit attributable toowners of parent

Ordinary profit%

1.7(Note) Revisions to the most recently announced consolidated forecast:
NoProfit pershare

Millions of yen%

Millions of yen%

yen

14,600(9.0)

10,600(9.7)

136.43*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(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: 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, 2023
85,164,895 shares
As of Feb. 28, 2023
85,164,895 shares2) Total number of treasury stock at the end of the period
As of Aug. 31, 2023
7,698,854 shares
As of Feb. 28, 2023
7,420,560 shares
3) Average number of shares outstanding during the period
Six months ended Aug. 31, 2023
77,697,690 shares
Six months ended Aug. 31, 2022
79,741,127 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 6, 2023. 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, 2023)

Current Second Quarter(As of Aug. 31, 2023)

AssetsCurrent assets
Cash and deposits

122,154

127,043

Notes and accounts receivable - trade, and contract assets

40,014

41,967

Securities

14,714

14,386Merchandise and finished goods

10,33011,419562

804

Raw materials and supplies

8,030

8,324

Other

3,629

11,251

Allowance for doubtful accounts

(261)

(288)

199,174

214,909

Buildings and structures, net

13,98017,492Other, net

29,22933,476Total property, plant and equipment

43,20950,968

Sales rights

394

370

Other551

554

Total intangible assets

946

925

Investment securities

60,84567,007

Other

9,948

10,698Work in process

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

Intangible assets

Investments and other assets

Allowance for doubtful accounts

(207)

(207)

Total investments and other assets

70,58677,498

114,742

129,391

313,917344,300

Total non-current assets
Total assets

(Millions of yen)

Prior Fiscal Year End(As of Feb. 28, 2023)

Current Second Quarter(As of Aug. 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable - trade

8,351

9,921

Electronically recorded obligations - operating

6,567

6,914

Short-term loans payable

1,071

1,071

Income taxes payable

2,338

3,037

Provision for bonuses

1,340

1,252

Other

22,90831,997

Total current liabilities

42,57854,194Non-current liabilities
Long-term loans payable

147

112

Net defined benefit liability

8,408

8,507

Other

4,375

6,378

Total non-current liabilities

12,931

14,99755,50969,192

Capital stock8,473

8,473

Capital surplus

2,361

2,361

Total liabilities
Net assets
Shareholders' equity

Retained earnings

235,569

240,702

Treasury shares(27,196)(28,533)

Total shareholders' equity

219,208

223,004

17,042

21,584

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

3,403

3,403

Foreign currency translation adjustment

15,81924,012Remeasurements of defined benefit plans
Total accumulated other comprehensive income

631

514

36,89649,515

Share acquisition rights

260

291

Non-controlling interests

2,042

2,296

258,408

275,108

313,917344,300

Total net assets
Total liabilities and net assets

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

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2022 – Aug. 31, 2022) (Mar. 1, 2023 – Aug. 31, 2023)

Net sales

59,61966,977

Cost of sales

25,15628,330Gross profit

34,462

38,646

Selling, general and administrative expenses

29,54930,250Operating profit

4,913

8,396

Interest income

202

1,128

Dividend income501567

3,146

1,305

224

335

4,074

3,336

Non-operating income

Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses

4

7

Share of loss of entities accounted for using equity method

69

22

Loss on cancellation of insurance policies

―

47

Other

43

15

Total non-operating expenses

118

91

8,870

11,640Gain on disposal of non-current assets

142―

Total extraordinary income

142―

77

2

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

77

2

Profit before income taxes

Total extraordinary losses

8,935

11,638

Income taxes

2,215

2,967

Profit

6,720

8,671

215

253

6,504

8,417

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

Quarterly Consolidated Statements of comprehensive income(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2022 – Aug. 31, 2022) (Mar. 1, 2023 – Aug. 31, 2023)

Profit

6,720

8,671

Valuation difference on available-for-sale securities

1,015

4,422

Foreign currency translation adjustment

12,996

8,303

Remeasurements of defined benefit plans, net of tax(160)(93)

Share of other comprehensive income of entities accounted forusing equity method

(26)

97

13,826

12,72920,546

21,40020,392

21,036153364

Other comprehensive income

Total other comprehensive income
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, 2022 – Aug. 31, 2022) (Mar. 1, 2023 – Aug. 31, 2023)

Cash flows from operating activities
Profit before income taxes

8,935

11,638Depreciation

2,160

2,473

Increase (decrease) in retirement benefit liability

18772

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income(68)

14(704)(1,695)

Loss (gain) on cancellation of insurance policies―

44

Interest expenses

4769

22

Decrease (increase) in trade receivables

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

3,598

(248)

Decrease (increase) in inventories(1,704)(342)

Increase (decrease) in trade payables

1,857

1,079

Other, net(4,157)(4,792)

Subtotal

10,1798,274Interest and dividends received

870

1,499

Interest paid

(4)

(7)

(2,881)(1,906)

(0)

(7)

8,162

7,851

(12,169)

14,943

Income taxes paid
Payments of retirement benefits for directors (and other officers)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits
Decrease (increase) in short-term investment securities

1,740

171

Purchase of property, plant and equipment(2,341)(4,686)(27)(4)(5,507)(8)Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities

30―

Proceeds from cancellation of insurance funds―

27

Other, net

346

1(17,928)

10,443

Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings―(2)

Repayments of long-term borrowings
Purchase of treasury shares

(35)

(33)

(0)

(1,336)(3,357)(3,287)

Dividends paid to non-controlling interests

(61)

(108)

Other, net

(185)

(73)

Dividends paid

(3,641)(4,841)

Effect of exchange rate change on cash and cash equivalents

Net cash provided by (used in) financing activities

5,932

2,307

Net increase (decrease) in cash and cash equivalents(7,475)

15,761

Cash and cash equivalents at beginning of period

86,24765,424

Cash and cash equivalents at end of period

78,771

81,186