Consolidated Financial Results for the Fiscal Year Ended February 29, 2020
[Japanese GAAP]
April 10, 2020
Company name:

Hisamitsu Pharmaceutical Co., Inc.

Stock exchange listing:Tokyo, Nagoya, Fukuoka

Securities code:

4530

URL:

http://www.hisamitsu.co.jp/

Representative:

NAKATOMI Kazuhide, President & CEO

Contact

TAKAO Shinichiro, Director & Executive Officer, Head of Investor Relations Department

TEL:+81-3-5293-1704

Scheduled date of Annual General Meeting of Shareholders:

May 21, 2020

Scheduled date of dividend payment:

May 22, 2020

Scheduled date of filing annual securities report:

May 22, 2020

Preparation of supplementary materials for financial results:

Yes

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

1. Consolidated Financial Results for the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)(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 2020

140,992△1.7

22,7272.0

25,6284.0

18,694△2.7

Fiscal year 2019

143,408△3.4

22,278△17.3

24,647△12.7

19,2040.4(Note) Comprehensive income:Fiscal year 2020

13,478 millions of yen ( △15.6%)

Fiscal year 201915,969 millions of yen ( △30.1%)

Diluted profit per
share

Profit per share

Return on equity

Ordinary profit on
total assets

Operating profit to
net sales

yen

yen

%

%

%

Fiscal year 2020

227.58227.30

7.5

8.5

16.1

Fiscal year 2019230.08229.86

8.3

15.5

7.8

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

Fiscal year 2020

786 millions of yen

Fiscal year 2019

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

Net assets

Shareholders’ equity
ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Fiscal year 2020

307,401

250,74680.9

3,046.45

Fiscal year 2019295,786

248,62983.5

2,987.29(Reference) Shareholders’ equity:

Fiscal year 2020

248,784 millions of yen

Fiscal year 2019

246,942 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 2020

27,395△17,229△11,726

86,996

Fiscal year 201915,772△39,302△13,347

88,782

2. Dividends
Annual dividends
First

Second

Third

Fouth

quarterquarterquarterquarter

Total
dividends

Total

Payout ratio(consolidated)

Dividends to
net assets(consolidate)

yen

yen

yen

yen

yen

Millions of yen%%

Fiscal year 2019

―

41.25

―

41.25

82.50

6,863

35.9

2.8

Fiscal year 2020

―

41.50

―

41.50

83.00

6,809

36.5

2.8

Fiscal year 2021
(Forecast)

―

―

―

―

―

―

(Note) Dividends forecast in the fiscal year ending February 2021 is yet to be determined.

3. Consolidated Earnings Forecast for the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
Earnings forecast in the fiscal year ending February 2021 is yet to be determined as it is difficult to predict due to the effect of theCoronavirus disease 2019 (COVID-19). This will be announced later when the effect on business performance by the infectious
disease is made clear.

*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 2020:
85,164,895 sharesFiscal year 2019:
95,164,895 shares2) Total number of treasury stock at the end of the period
Fiscal year 2020:
3,501,310 sharesFiscal year 2019:12,500,670 shares
3) Average number of shares outstanding during the period
Fiscal year 2020:
82,143,061 sharesFiscal year 2019:83,468,569 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 29, 2020
(March 1, 2019 to February 29, 2020)(1) Non-consolidated Operating Results(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year 2020
Fiscal year 2019

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

109,761
109,269

0.5△2.9

20,312
17,78814.2△13.8

21,501
19,9168.0△6.8

15,074
15,944△5.5
9.0

Profit per share

Fiscal year 2020
Fiscal year 2019

Diluted profit per share
yen

yen

183.45190.96183.23190.77(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 2020
Fiscal year 2019

266,073258,533

225,579
226,74984.6
87.6

2,755.32
2,737.34(Reference) Shareholders’ equity:

Fiscal year 2020

225,087 millions of yen

Fiscal year 2020

226,356 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, 2019)

Current Fiscal Year End(As of Feb. 29, 2020)

AssetsCurrent assets
Cash and deposits

110,283

107,051

Notes and accounts receivable - trade39,961

49,232

Securities

20,94634,878Merchandise and finished goods

8,519

8,816

470

505

6,769

6,137

Work in process
Raw materials and supplies
Other

4,766

2,952

Allowance for doubtful accounts

△299

△325

191,418

209,251

45,04945,764△30,233△30,824

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

14,816

14,939Machinery, equipment and vehicles

39,607

41,251△32,948△34,617

6,658

6,633

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

11,58011,774△9,798△9,796

1,781

1,978

12,34812,340

332

498

△241

△314

91

184

Construction in progress

3,860

2,520

Total property, plant and equipment

39,556

38,59668

48

Intangible assets
Sales rights
Software

203

113

Other

1,718

1,308

Total intangible assets

1,990

1,469

Investments and other assets
Investment securities

53,521

48,379Long-term bank cash

691―

Net defined benefit asset

3,165

3,653

814

1,287

4,843

4,976

Deferred tax assets
Other
Allowance for doubtful accounts

△215

△214

Total investments and other assets

62,82058,083

Total non-current assets
Total assets

104,368

98,150295,786

307,401

(Millions of yen)

Prior Fiscal Year End(As of Feb. 28, 2019)

Current Fiscal Year End(As of Feb. 29, 2020)

Liabilities
Current liabilities
Notes and accounts payable - trade

8,290

10,488

Electronically recorded obligations - operating

5,864

8,536

Short-term loans payable

1,361

1,209

26

68

Accounts payable - other

5,936

7,865

Income taxes payable

868

5,745

Lease obligations

Provision for sales returns

101

127

Provision for bonuses

1,629

1,558

Other

6,275

5,456

Total current liabilities

30,354

41,055

Non-current liabilities
Long-term loans payable

433

368

Lease obligations

70

130

Deferred tax liabilities for land revaluation

1,660

1,660

Deferred tax liabilities

3,562

1,318

Net defined benefit liability

7,465

7,600

Other

3,610

4,521

Total non-current liabilities

16,802

15,59847,15756,654

8,473

8,473

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

5,914

2,272

Retained earnings

249,156

230,929

Treasury shares△40,886△11,730

Total shareholders' equity

222,657

229,945

17,00912,047

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

3,790

3,790

Foreign currency translation adjustment

3,581

2,700

Remeasurements of defined benefit plans

△97

299

24,284

18,838392

491

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

1,295

1,470

248,629

250,746

295,786

307,401

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

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2018 – Feb. 28, 2019) (Mar. 1, 2019 – Feb. 29 2020)

Net sales

143,408

140,992

Cost of sales

54,72753,388Gross profit

88,68087,603

Selling, general and administrative expenses

66,40164,875

Operating profit

22,27822,727

Interest income

800

1,142

Dividend income

763

811

Share of profit of entities accounted for using equity method

619

786

Other

399

425

2,582

3,165

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses

19

19

Foreign exchange losses

178

149

Other

17

95

Total non-operating expenses

214

264

24,64725,628Gain on disposal of non-current assets

074

Gain on sales of investment securities

1,312

―

―

1,611

1,312

1,685

Ordinary profit
Extraordinary income

Settlement received
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets

72

28

Loss on valuation of investment securities―

176

Impairment loss

138

953

Loss on sales of shares of subsidiaries

74―

Total extraordinary losses

285

1,159

Profit before income taxes

25,673

26,155

Income taxes - current

4,688

7,999

Income taxes - deferred

1,605

△755

Total income taxes

6,294

7,244

Profit19,37818,911

174

217

19,204

18,694

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

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2018 – Feb. 28, 2019) (Mar. 1, 2019 – Feb. 29 2020)

Profit19,37818,911

Valuation difference on available-for-sale securities△1,915△4,993Foreign currency translation adjustment△1,546

△867

215

398

△163

30

△3,409△5,432

15,96913,47815,833

13,248135

230

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
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, 2019 (March 1, 2018 to February 28, 2019)(Millions of yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at March 1, 2018
Cumulative effects of changes inaccounting policies
Restated balance

8,473

Retainedearnings

5,914

Treasuryshares236,342△34,709

Total
shareholders’equity216,021

468
8,473

5,914

236,811468△34,709

216,490

Changes in items during period
Dividends of surplus△6,883△6,883

Profit attributable to owners of parent

19,204

19,20423

23

Reversal of revaluation reserve for land

△6,176

Purchase of treasury shares△6,176―

Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity
Total changes of items during period――

Balance at February 28, 2019――12,344△6,176

6,167

8,473

5,914

249,156△40,886

222,657(Millions of yen)

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

Balance at March 1, 2018
Cumulative effects of changes inaccounting policies
Restated balance

19,101

3,814

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

5,088

△325

27,679299

Noncontrollinginterests

Total net
assets1,227

245,227468

19,101

3,814

5,088

△325

27,679299

1,227

245,696

Changes in items during period
Dividends of surplus△6,883

Profit attributable to owners of parent

19,204

Reversal of revaluation reserve for land

23
△6,176

Purchase of treasury shares
Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity――△2,092△23△1,507228△3,39493

67△3,234

Total changes of items during period△2,092△23△1,507228△3,394

93

67

2,933

Balance at February 28, 2019

17,009

3,790

3,581

△97

24,284

392

1,295

248,629For the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)(Millions of yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at March 1, 2019
Cumulative effects of changes inaccounting policies
Restated balance

8,473

Retainedearnings

5,914

249,156

Treasuryshares△40,886

Total
shareholders’equity222,657

△55
8,473

5,914

249,100△55△40,886

222,602

Changes in items during period
Dividends of surplus△6,830△6,830

Profit attributable to owners of parent

18,694

18,694―

Reversal of revaluation reserve for land
Purchase of treasury shares△33,675

Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity

30,034△4,520△4,52033,675―△30,034――

Total changes of items during period
Balance at February 29, 2020―

△3,641△18,170

29,155

7,343

8,473

2,272

230,929△11,730

229,945(Millions of yen)

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

Balance at March 1, 2019
Cumulative effects of changes inaccounting policies

17,009

Restated balance

17,009

3,790

Total
Share
Foreign
Remeasureaccumulated acquisition
currency
ments ofotherrightstranslation
definedcomprehensiadjustment benefit plans
ve income

3,581

△97

24,284392

Noncontrollinginterests

Total net
assets

1,295

248,629
△55

3,790

3,581

△97

24,284

392

1,295

248,574

Changes in items during period
Dividends of surplus△6,830

Profit attributable to owners of parent

18,694―

Reversal of revaluation reserve for land

△4,520Purchase of treasury shares
Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at February 29, 2020――
△4,961

―

△880

396

△5,44599

175△5,170△4,961

―

△880

396

△5,445

99

175

2,172

12,047

3,790

2,700

299

18,838491

1,470

250,746(4) Consolidated Statements of Cash Flows
Year ended February 28, 2019 and February 29, 2020
(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2018 – Feb. 28, 2019) (Mar. 1, 2019 – Feb. 29 2020)

Cash flows from operating activities
Profit before income taxes

25,673

26,155

Depreciation

5,742

4,251

Impairment loss

138

953

Loss (gain) on sales of shares of subsidiaries
Increase (decrease) in net defined benefit liability

74

―

227

119

Increase (decrease) in provision for bonuses

△17

△62

Increase (decrease) in allowance for doubtful accounts

64

26

Increase (decrease) in provision for sales returns△425△1,563△1,954

Interest expenses

19

19

Foreign exchange losses (gains)

126

△40

△619

△786

△1,312―

Interest and dividend income

Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities―

176

Loss (gain) on disposal of non-current assets

72

△45

△5,310△9,422

Decrease (increase) in inventories

1,310

232

Decrease (increase) in other current assets

△892

1,742

649

4,944

Decrease (increase) in notes and accounts receivable - trade

Increase (decrease) in notes and accounts payable - trade

△897

1,008

Other, net

184

970

Subtotal

23,66528,315Interest and dividend income received

1,465

2,041

Interest expenses paid

△19

△19

△9,339△2,941

15,772

27,395

Increase (decrease) in other current liabilities

Income taxes paid
Net cash provided by (used in) operating activities

(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2018 – Feb. 28, 2019) (Mar. 1, 2019 – Feb. 29 2020)

Cash flows from investing activities
Decrease (increase) in time deposits
Decrease (increase) in long-term time deposits
Purchase of property, plant and equipment△36,218△3,128△484

676△3,626△3,698Proceeds from sales of property, plant and equipment
Purchase of intangible assets

291

74

△37

△28

Decrease (increase) in short-term investment securities△530△9,514Purchase of investment securities△353△1,615

Proceeds from sales and redemption of investment securities

1,898

―

6

6

△247

―

△39,302△17,229

△100

△150

Repayments of long-term loans payable

△71

△67

Dividends paid to non-controlling interests

△68

△54

Purchase of treasury shares△6,176△4,520Cash dividends paid

△6,882△6,836

Collection of loans receivable
Payments for sales of shares of subsidiaries resulting in change inscope of consolidation
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable

Other, net
Net cash provided by (used in) financing activities

△48

△97

△13,347△11,726

△908

△225

Net increase (decrease) in cash and cash equivalents△37,786△1,786

Cash and cash equivalents at beginning of period

126,569

88,782

Cash and cash equivalents at end of period

88,782

86,996

Effect of exchange rate change on cash and cash equivalents