Outline of Consolidated Financial Results for the Second Quarter Ended September 30, 2020
November 5, 2020
Name of the listed company: NIPPON SHINYAKU CO., LTD.
Listing stock exchange: Tokyo
Code No.: 4516
URL http://www.nippon-shinyaku.co.jp/
Representative: Shigenobu Maekawa, President and Representative Director
Contact: Taro Sakurai, General Manager and Finance & Accounting Dept.
Tel. +81-75-321-9114
Scheduled date for submission of quarterly Securities Report: November 9, 2020
Scheduled start of payment: December 4, 2020
Supplementary material:
Yes
Financial result meeting:Yes (for institutional investors and securities analysts)* All amounts are rounded down to the nearest million yen.
1. Consolidated Results for the Second Quarter Ended September 30, 2020 (April 1 to September 30, 2020)(1) Operating results
Net sales(¥ million)

Net income attributableto owners of the parent

Operating income

Ordinary income

11,1401.0%

11,248(0.2%)

8,073(2.6%)

11,025

45.7%

11,271

37.5%

8,291

37.3%

Second quarter ended
57,8170.8%
September 30, 2020
Second quarter ended
57,3877.3%
September 30, 2019
Note: Comprehensive income
As of September 30, 2020: ¥9,758 million 30.8%

As of September 30, 2019: ¥7,461 million 7.1%

Net income per share (¥)
BasicDiluted

Second quarter ended－119.87
September 30, 2020
Second quarter ended－123.11
September 30, 2019
Note: Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.
(2) Financial position(¥ million)
Total assets

Net assets

As of September 30, 2020
180,453
As of March 31, 2020
175,017
Note: Owners’ equity
As of September 30, 2020: ¥152,343 millionEquity ratio

152,621
145,760

Net assets per share (¥)

84.4%
83.1%

2,261.85
2,160.11

As of March 31, 2020: ¥145,491 million

2. Dividends
Cash dividends per share (¥)
1st quarter
Year ended March 31, 2020
Year ending March 31, 2021
Year ending March 31, 2021 (forecast)
Note: Revisions to forecast for the current quarter: None.

2nd quarter－－

Year-end

3rd quarter¥43.00¥49.00

Annual－¥43.00¥86.00－¥50.00¥99.003. Business Forecast for the Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)(¥ million)

Net sales

Operating income Ordinary income

Net income
attributable toowners of theparent

Net income pershare (¥)

Full term
123,000
5.5 25,000 15.4% 25,500 13.6% 19,000 12.6%
Notes: 1. Percentage figures represent the percentage of increase or decrease against the same period of the previous year.
2. Revisions to forecast for the current quarter: Yes.
- 1 -282.09

4. Others(1) Changes in the scope of consolidation
Inclusion: None
Exclusion: None
Note: Changes in specified subsidiaries involved changes in the scope of consolidation(2) Adoption of special accounting methods for preparation of quarterly financial statements: None
(3) Changes in accounting policies and accounting estimates, and restatement
1. Changes in accounting policies arising from revision of accounting standards: None
2. Changes arising from other factors: None
3. Changes in accounting estimates: None
4. Restatement: None
(4) Number of shares outstanding (ordinary shares)
Number of shares outstanding (including treasury stock)
As of September 30, 2020:
70,251,484 shares
As of March 31, 2020:
Number of shares of treasury stock

70,251,484 shares

As of September 30, 2020:
As of March 31, 2020:

2,897,930 shares
2,897,768 shares

Average number of shares outstanding (total for the consolidated period)
As of September 30, 2020:
67,353,653 shares
As of September 30, 2019:

67,354,078 shares

Note:
This summary of quarterly financial results is exempt from the quarterly review procedures under the Financial Instruments andExchange Act. At the time of disclosure, published figures in this financial release have not been completed to a quarterly review offinancial statements based on the Financial Instruments and Exchange Law.
This financial release contains certain statements about the future, which are based information available and deemed reasonable toNippon Shinyaku at the time of announcement, and are not the commitments made by Nippon Shinyaku.
Readers are advised that actual results may differ substantially from the above forecasts due to various unforeseeable factors.

- 2 -5. Consolidated Financial Statement(1) Consolidated Balance Sheet(Millions of yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Electronically recorded monetaryclaims
SecuritiesMerchandise and finished goods
Semi-finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netLand
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Total assets

As of September 30, 2020

36,00540,94739,25137,009575

537

11,10915,1794,24437410,096
3,392(0)
121,925

11,12916,9483,752
456
13,0223,266(0)125,376

9,119
7,459
4,366
20,944
546

8,970
7,459
4,479
20,909596

18,909
1,726
8,631
2,332
31,60053,091
175,017

21,439
1,229
8,569
2,331
33,57055,077
180,453(Millions of yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable
Accounts payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

As of September 30, 2020

11,213
5,730
2,081
2,994
2,945
24,965

10,225
5,473
3,323
3,017
2,293
24,333

9
3,956
324
4,290
29,256

－
3,174
324
3,498
27,831

5,174
4,445
132,886(2,473)140,032

5,174
4,445
138,063(2,474)145,208

6,929

8,515

7

(2)

(3)

4

(1,475)(1,382)

5,458

7,134

269
145,760
175,017278
152,621
180,453

(2) Consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and allowances
Provision for bonuses
Promotion expenses
Retirement benefit expenses
Depreciation
Research and development expenses
OtherTotal selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Gain on sales of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Donations
Rental expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent

Six months ended
September 30, 2020

57,38726,30731,07957,817
24,99432,823

3,476
1,972
2,668
357
167
6,567
4,844

4,132
2,021
2,420
260
186
7,659
5,000

20,054

21,682

11,025

11,140

7
297
228
28
205
767

8
267
234
－
89
600

1169
71
211
68
521
11,271
11,271
2,527
440
2,968
8,302

1216
70
150
53
492
11,248
11,248
3,387
(221)
3,166
8,081

11

8

8,291

8,073

(Consolidated Statements of Comprehensive Income)(Millions of yen)Six months ended
September 30, 2019
ProfitOther comprehensive income
Valuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable to noncontrolling interests

Six months ended
September 30, 2020

8,302

8,081

(997)

1,586

5(8)

(10)
7158

92(841)
7,461

1,676
9,758

7,449

9,750

118

(3) Consolidated Statements of Cash Flows for the Quarter(Millions of yen)Six months ended
September 30, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current
assetsIncrease (decrease) in trade payables
Increase (decrease) in accrued
consumption taxes
Increase (decrease) in other current
liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Proceeds from sales of investment
securities
Purchase of investment securities
Purchase of property, plant and equipment
Purchase of long-term prepaid expenses
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Dividends paid
Purchase of treasury sharesOther, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning ofperiod
Cash and cash equivalents at end of period

Six months ended
September 30, 2020

11,271
1,694
27

11,2481,740
23(576)

(648)

(305)
1
73
6,347
(2,427)

(276)
1
(32)
3,975
(4,286)

(261)

(7)

2,177

(988)

(751)

(142)

(2,558)

(621)

(34)
14,677305(1)(3,426)38
10,025276(1)(2,173)

11,555

8,127

(60)
110
(500)
－

(80)
30(500)
510

658

－

0(780)(1,315)27(300)(1,018)(694)(18)(1,860)(2,071)(2,756)(0)(5)(2,898)(1)－(2,763)(2,899)

(82)

40

6,850

3,196

39,632

44,29846,48347,494