Corporate Vision
Our commitment totreating people around the world
with topical and transdermal patches

More than a half century has elapsed since
the launching of Salonpas, and about 20
billion pieces have been sold in last twenty
years.
Approx. 1.3 million kilometers, encircling theearth 31 times.

Topical and transdermal patches are simple to use, being placed on the skin totreat medical conditions. They are consistent with the latest trend of improving
drug delivery in medical treatment designed to enhance people’s quality of life.
Our message that medicated skin patches have a lot to offer is embodied
in the word Salonpathy, derived from our mainstay product Salonpas. Overthe years we have continued to help people improve their health by leveraging
our transdermal drug delivery system (TDDS) expertise to develop topical andtransdermal patches mainly for pain relief and reducing inﬂammation.
Our basic management policy is to concentrate on and specialize in creating
new pharmaceutical products and formulations adaptable to TDDS, which is thesource of our competitiveness. We believe this will allow us to respond to theunderlying need for health, safety, and comfort of people around the world andimprove their quality of life.
We are committed to supplying pharmaceutical products capable of treating
people anywhere in the world simply by applying them to the skin.

Forward-looking statements:
Statements in this annual report concerning current plans, forecasts, strategies, beliefs, and other forward-looking information related to Hisamitsu Pharmaceutical Co., Ltd.,other than those of historical fact, are forecasts of future business performance based on the judgments of management at Hisamitsu Pharmaceutical Co., Ltd. in light ofcurrently available information. Accordingly, please refrain from making investment decisions based solely on forecasts of business performance in this annual report. Actual
business performance may differ signiﬁcantly from these forecasts due to changes in a variety of factors.
Note: Amounts in US dollars are included solely for convenience and are translated at a rate of ¥97.81=U.S.$1.00, the approximate rate of exchange on February 28, 2009.

Contents

Corporate Vision
Consolidated Financial Highlights

1

To Our Shareholders

2

Milestone

3

Overview of Operations

4

Corporate Governance and Internal Auditing

15

Corporate Information

21

Financial Section

HISAMITSU PHARMACEUTICAL CO., INC

Consolidated Balance Sheets

27

Consolidated Statements of Income

29

Statements of Changes in Consolidated Shareholders’ Equity

30

Consolidated Statements of Cash Flows

31

Notes to Consolidated Financial Statements

33

Corporate Data

53

ANNUAL REPORT 2009

Consolidated Financial Highlights

Fiscal year (FY) to:

2/05

2/06

2/07

2/08

2/09

Sales

(¥ million)

83,545

102,665

109,791

119,061

124,655

Operating income(¥ million)

21,495

22,77026,13429,071

32,532

Ordinary income(¥ million)

21,871

24,15927,00130,20432,476

Net income(¥ million)

12,873

14,44815,847

18,663

19,120Net assets(¥ million)

80,86890,520103,966

113,929

124,105

Total assets(¥ million)

111,063

136,584

141,143

149,750

167,642

Net assets per share(¥)

891.33

1,020.26

1,164.05

1,276.16

1,391.49

EPS(¥)

141.30159.75178.74210.45215.61

Diluted EPS

(¥)

—

—

—

—

—

Equity ratio

(%)

72.8

66.3

73.1

75.6

73.6

ROE

(%)

17.1

16.9

16.4

17.2

16.2

P/E

(x)

15.6

17.3

20.0

15.9

13.8

Operating cash ﬂow(¥ million)

20,13023,114

12,22825,722

22,382

Investing cash ﬂow(¥ million)(4,755)(18,606)(11,804)(11,911)(15,927)

Financing cash ﬂow(¥ million)(1,267)(303)(9,580)(7,479)(5,467)

Cash and equivalents at year-end(¥ million)

31,47735,623

26,51032,70633,356

Employees(average temporary staff)(People)

1,541
(290)

1,671
(295)

1,629
(353)

1,752
(297)

1,890
(288)

Notes: 1. Sales do not include consumption tax.
2. Diluted EPS is not listed due to the absence of residual securities.
3. Net assets have been calculated since FY 2/07 based on the Accounting Standards for the Presentation of Net Assets in the Balance Sheets(Corporate Accounting Standard No. 5) and the Application Guidelines for Accounting Standards for the Presentation of Net Assets in the
Balance Sheets (Corporate Accounting Standard Application Guideline No. 8).

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

To Our Stakeholders

I would like to provide an overview of our operations andthe services provided to our customers.

ﬁnancial results for the year to February 28, 2009 (FY 2/09).

As a result of these business activities, groupwide sales

The ethical pharmaceutical industry continued to facea challenging business environment amid ongoing efforts

grew 4.7% year-on-year, or ¥5,594 million, to ¥124,655
million; ordinary income grew 7.5%, or ¥2,271 million, toto curb healthcare expenditures, notably the promotion of¥32,476 million; and net income grew 2.4%, or ¥457 million,

generic drugs. We have responded to these circumstances
by working to provide medical institutions with pertinentscientiﬁc information about our ethical pharmaceuticals,particularly our mainstay anti-inﬂammatory pain relief
patches. We have also sought to promote sales of over-thecounter (OCT) pharmaceuticals, mainly anti-inﬂammatory
pain relief patches, amid a slumping market. Our researchand development efforts have focused on research in areasof specialty and on the development of new topical andtransdermal products. In our production facilities, we haveupgraded equipment to raise efﬁciency and improve quality,and have sought to maintain and increase ISO 14001
certiﬁcations to help protect the global environment. In ourcable television broadcasting and other businesses, groupcompanies have worked to improve earnings by enhancing

to ¥19,120 million.

NAKATOMI Hirotaka
President & CEO

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ANNUAL REPORT 2009

Milestone

1847
Komatsuya founded.
Emblem of “Komatsuya”

1903
Hisamitsu & Co. (Saburo Nakatomi,
representative) established

1934
SALONPAS
introduced to the market

1937
SALONPAS
begins overseas export

1988
MOHRUS
introduced to the market

1995
MOHRUS TAPE
introduced to the market

2003
Hisamitsu’s
corporate logo mark renewed

2007
The 160th anniversaryof the company’s founding

2008
SALONPAS PAIN RELIEF PATCH
SALONPAS ARTHRITIS PAIN
approved as the ﬁrst OTC topicalanalgestic patch by FDA

Hisamitsu Pharmaceutical was founded in the mid-19th century under thename of Komatsuya. The company went on to create a large variety ofhealth-related products, and has been the organization responsible for thepromotion of new ideas based on its comprehensive system encompassing
research, development, manufacturing, and sales. Salonpas was in fact introduced in 1934, and with its outright effectiveness achieved the positionof market leadership it continues to hold today. Salonpas was developed
through the application of Asahi Mankinko, the prototype therapeutic patchor that we introduced back in 1903. Just as its market launch signaled ahigh level of reﬁnement, the product has evolved considerably since then,thanks to the comments of everyday users. Moreover, it has served to
expand the culture of patch treatment, in which therapeutic patches are

HISAMITSU PHARMACEUTICAL CO., INC

promoted as safe and easy to use. Diversity has become a key word interms of culture and lifestyle today, yet unfortunately this has brought forth
new health concerns associated with increased stress and reduced exercise.The company went on to create a large variety of health-related
products, and has been the organization responsible for the promotion of
new ideas based on its comprehensive system encompassing research,development, manufacturing, and sales. Salonpas was in fact introduced
in 1934, and with its outright effectiveness achieved the position of market
leadership it continues to hold today. Salonpas was developed through theapplication of Asahi Mankinko

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Overview of Operations

1. Overview of Operations(1) Operating results
The operating environment for the ethical pharmaceutical industry remained challenging due to ongoing efforts to curb
healthcare expenditures, including measures to promote generic drug use, and the April 2008 round of national healthinsurance drug price cuts. We have responded by working to provide medical institutions with targeted scientiﬁc information
about our ethical pharmaceuticals, particularly our mainstay anti-inﬂammatory pain relief patches. We have also worked tolaunch and promote sales of OTC pharmaceuticals, especially our anti-inﬂammatory pain relief patches, amid a slumping
market. Our research and development efforts have focused on research in our specialty areas and on the development of
new products with novel local or systemic effects. At our production facilities, we have continued to upgrade equipment toraise efﬁciency and improve quality, and have sought to maintain and increase ISO 14001 certiﬁcations to help protect the
global environment. In our cable television broadcasting and other businesses, group companies have worked to improveearnings by enhancing the services provided to our customers.
As a result of these business activities, consolidated sales grew 4.7% year on year, or ¥5,594 million, to ¥124,655
million; ordinary income grew 7.5%, or ¥2,271 million, to ¥32,476 million; and net income grew 2.4%, or ¥457 million, to¥19,120 million.
Pharmaceuticals and related products
The pharmaceuticals and related products segment, particularly the ethical pharmaceuticals business, faced an extremely
uncertain business environment during FY 2/09 amid national efforts to curb healthcare expenditures. We responded
to these circumstances by providing medical institutions with appropriate and detailed scientiﬁc information about our
products, particularly our anti-inﬂammatory pain relief patches. While collecting and supplying information on efﬁcacy andsafety, we sought to expand our market share for a variety of products, including our mainstay product Mohrus Tape 20mg,
a ketoprofen transdermal patch; Mohrus Tape L 40mg, a double-sized version of the Mohrus Tape patch; Mohrus Pap
30mg, a ketoprofen transdermal patch; Mohrus Pap 60mg, a ketoprofen transdermal patch that can be applied to a large
area; Estrana Tape 0.72mg, an estradiol transdermal patch; and HMT, a transdermal patch containing the bronchodilator
tulobuterol.
In the OTC business, sales competition in the domestic market remained ﬁerce. We sought to increase sales by
expanding and developing our customer base through existing product improvements and new product launches, including
our mainstay anti-inﬂammatory pain relief patches, Butenalock for athlete's foot, and Lifecella beauty masks. During FY
2/09, we launched two new anti-inﬂammatory pain relief patches: Salonpas EX containing 3.5% indomethacin and Air
Salonpas DX containing 3.0% felbinac. We also expanded our Feitas brand line-up with the addition of Feitas Sip, Feitas
Gel, Feitas Tick EX, and Feitas L Onkan products. Under the Lifecella brand, we launched three new beauty masks—
Ryojun Hada, Tomei Hada, and Tsuyasaki Hada—in a bid to develop new customer segments.

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Overview of Operations

As a result of these efforts, sales in the pharmaceuticals and other products segment rose 4.9% year on year, or ¥5,637
million, to ¥121,767 million.
Cable television broadcasting and other businesses
In our cable and television broadcasting business, we completed preparations for terrestrial digital broadcasting and soughtto acquire customers for cable television and cable Internet services by expanding our service area.
We also worked to improve earnings in other businesses, including the production and sale of laboratory animals, byexpanding sales channels, improving customer services, and streamlining operations. Nevertheless, sales in the cable
television broadcasting and other businesses segment fell 1.5% year on year, or ¥43 million, to ¥2,888 million.
(2) Cash ﬂows
Cash provided by operating activities totaled ¥22,382 million, a decrease of ¥3,339 million year on year, due mainly to arise in the increase in notes and accounts receivable and an increase in income taxes paid, and despite an increase in net
income before taxes.
Cash used in investing activities totaled ¥15,927 million, an increase of ¥4,016 million year on year, due mainly to anincrease in payments for the purchases of marketable securities.
Cash used in ﬁnancing activities totaled ¥5,467 million, a decrease of ¥2,011 million year on year, due mainly to a decreasein outﬂow from repayments of long-term borrowings.
As a result of the foregoing, cash and cash equivalents at the end of the ﬁscal year totaled ¥33,356 million, an increaseof ¥650 million from the beginning of the ﬁscal year.
(3) Sales
A breakdown of sales by business segment in FY 2/09 is provided below.
Business segment
Pharmaceuticals and related products
Topical analgesic products(Millions of yen)

YoY (%)¥ 121,767

4.9

111,580

5.6

Other topical and transdermal products

4,178

(1.5)

Others

6,007

(3.5)

Cable television broadcasting

1,805

(1.6)

Other businesses

1,083

(1.3)

¥ 124,655

4.7

Total

Notes: 1. Sales to main customers and percentage to total sales

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Overview of Operations

FY 2/08
Customer

FY 2/09

Sales (¥ million)% of total

Sales (¥ million)% of total

Mediceo Paltac Holdings Co., Ltd.

27,88523.4

28,88723.2

Alfresa Holdings Corporation

17,65314.8

19,043

15.3

Mediceo Paltac Holdings Co., Ltd. made Kobashou, Inc. a wholly owned subsidiary on January 1,
2008. Figures for FY 2/07 have been adjusted to enable comparison after the change. Alfresa Holdings
Corporation made CS Yakuhin Co., Ltd. and Ryuyaku Co., Ltd. wholly owned subsidiaries on October 1,
2007. Figures for FY 2/07 have been adjusted to enable comparison after the change.
2. The foregoing ﬁgures do not include consumption tax.

2. Key Challenges
Pharmaceuticals and related products
We expect the ethical pharmaceuticals business to face continued efforts to curb pharmaceutical expenditures, including
reductions in national health insurance prices, amid the rapid aging of Japanese society. In response to this difﬁcult businessenvironment, we are stepping up efforts to provide medical institutions with scientiﬁc information and we seek to develop
new topical and transdermal products that meet the needs of medical institutions and their patients.
For OTC pharmaceuticals, amid a prolonged market slump and intensifying competition, we seek to expand sales ofmainstay anti-inﬂammatory pain relief patches and respond to the needs of our customers by continuing to improve existingproducts and developing new products.
In overseas business, we are working to establish our brand in terms of trademarks, designs, manufacturing technology,
and quality control systems, and to further augment overseas manufacturing facilities and promote overseas clinical trials.
Continuing to recognize our mission and responsibility as a pharmaceutical company, we aim to create a more robust
business base and manufacturing structure, and to accelerate the development of new products by concentrating researchin areas of specialty.
Cable television broadcasting and other businesses
In the cable television broadcasting and other businesses, including the production and sale of laboratory animals, ourgroup companies are working to expand their businesses and provide precise services to their customers while further
improving earnings by streamlining management and bolstering their corporate structure.

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Overview of Operations

Basic policy on control of the company(1) Overview of our basic policy
We believe any entity with control over decision-making related to the company’s ﬁnancial and business affairs must havean understanding of the source of the company’s enterprise value and be able to consistently maintain and improve thisenterprise value and the common interests of shareholders. We believe any decision on how to respond to a proposed
acquisition that would transfer control over the company should ultimately be based on the wishes of individual shareholders.
We are not opposed to large purchases of the company’s stock, provided that it contributes to enterprise value and thecommon interests of shareholders.
However, there are many instances in which large stock purchases and proposed acquisitions may not contribute to thetarget company’s enterprise value and the common interests of shareholders. Examples include: those that clearly damage
the target company’s enterprise value and the common interests of shareholders, in light of the objective and other aspectsof the share purchase or proposed acquisition; those that effectively coerce shareholders into selling their shares; thosethat fail to provide a reasonable amount of time for the target company’s board of directors and shareholders to consider thedetails and possibly prepare a counteroffer; those that have conditions (e.g., purchase price, timing, and method) that areeither inadequate or inappropriate in light of the target company’s enterprise value; and those that damage relations with
employees, customers, creditors, or other parties essential to continued growth in the target company’s enterprise value.
We believe any entity that pursues a large stock purchase or proposed acquisition that does not contribute to thecompany’s enterprise value and the common interests of shareholders is not an appropriate entity for controlling decisionmaking related to the company’s ﬁnancial and business affairs, and that necessary and appropriate countermeasures must
be taken against any large stock purchase or proposed acquisition by such an entity to ensure the company’s enterprisevalue and the common interests of shareholders.
(2) Speciﬁc initiatives to achieve our basic policy
1) Speciﬁc initiatives to achieve our basic policy
Since launching a pharmaceutical business in 1847, our company has worked hard to improve the health of people byproviding pharmaceutical products, mainly pain relieving patches. External patches that are easy for anyone to apply topromote healing are consistent with the current interest in improving therapeutic drugs and quality of life, and they arealso representative of Japan’s therapeutic culture, which is well respected around the world. We pursue our business as a
mission to convey to the world the effectiveness and resulting excitement of this therapeutic patch culture.
Since releasing Salonpas in 1934, we have successfully developed and marketed a variety of pharmaceutical patch
products, including the OTC pharmaceutical Salonsip and the ethical pharmaceuticals Mohrus Pap and Mohrus Tape, byconcentrating on the creation of new drugs and new drug preparations based on our accumulated expertise and experience

HISAMITSU PHARMACEUTICAL CO., INC

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Overview of Operations

and the support of our customers. We have also created products in new areas other than anti-inﬂammatory pain relief,
including the external antifungal drug Volley and the hormone replacement patch Estrana, and are expanding our businessinternationally by conducting sales, pursuing research and development, and acquiring approvals in various countries
around the world.
Our corporate philosophy is to strive to improve the quality of life of people around the world by creating external drugs
to meet the needs of our customers, and by implementing this philosophy, we seek to enhance enterprise value and thecommon interests of shareholders.
In other words, the sources of enterprise value for our company are: 1) broad access to a variety of drugs createdby a number of companies, and research and development capabilities to make these drugs available in patches; 2)
manufacturing technology and quality control systems that enable the efﬁcient, stable, and ongoing production of high-quality
products; 3) marketing prowess to cultivate several long-selling and market-leading brands, including Salonpas, Salonsip,
Feitas, Butenalock, Mohrus Pap, and Mohrus Tape; and 4) an integrated research and development, manufacturing, andsales structure that allows us to quickly reﬂect the needs of our customers to improve products and services.
Going forward, we will continue our efforts to increase enterprise value and maximize the common interests ofshareholders through ongoing and aggressive investment.
To achieve this goal, we aim to build a robust corporate structure capable of meeting our sales targets and securing
net proﬁts despite the difﬁcult competitive environment, and to ensure sustained growth in net proﬁts by strengthening ourbusiness both in Japan and overseas. We also aspire to be an independent research and development-based pharmaceuticalcompany by concentrating research in our areas of specialty, in line with our basic management policy, and by focusing on
the creation of new drugs and new drug preparations.
We are also actively pursuing licensing activities, including an agreement with Mundipharma International Limited for the
exclusive distribution in Japan of Norspan, a buprenorphine patch to treat noncancerous moderate to severe back pain andchronic osteoarthritis pain.
In this way, we seek to increase cash ﬂow through the active pursuit of our business and to create future assets thatwill contribute to the common interests of shareholders through the development of new topical and transdermal products,
international expansion of our brands in terms trademarks, designs, manufacturing technology, and quality control systems,
streamlining of management, and bolstering of our corporate structure.
We consider the return of proﬁts to shareholders to be an important management issue, and we seek to pay appropriate
dividends based on earnings and pursue ﬂexible ﬁnancial policies, including share buybacks, after considering researchand development investment to raise capital efﬁciency and enterprise value and the internal reserves needed for future
growth.

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Overview of Operations

In particular, we seek to maintain ROE at 15% or higher from the standpoint of raising capital efﬁciency, and to consistently
pay divides with a target payout ratio of 30%.
2) Initiatives in light of our basic policy to prevent inappropriate entities from controlling decision-making related
to the group’s ﬁnancial and business affairs
Our board of directors voted at a meeting held on March 27, 2008 to adopt takeover defense measures to counter large
purchases of the company’s stock. These takeover defenses apply to purchases of the company’s stock with the objective
or result of a speciﬁc shareholder group owning 20% or more of the voting rights. Purchasers are required to follow certain
procedures in providing shareholders, the company’s board of directors, and an independent committee with information
on which to base their decision. If the purchaser fails to comply with these procedures or if the purchase will damage thecompany’s enterprise value and the common interests of shareholders, then the company can pursue countermeasuresagainst the purchaser in the form of a gratis allotment of share acquisition rights or other appropriate countermeasurethat the board of directors is permitted to take based on the Companies Act, other laws, and the company’s articles ofincorporation.
Whether countermeasures based on these takeover defenses are adopted is ultimately a decision of the board of
directors, but to ensure the proper use of these takeover defenses and objective, rational, and impartial decisions by thecompany’s board of directors, we established a committee independent from the board of directors and will give utmost
respect to the opinions of this committee.
These takeover defenses were effective from March 27, 2008 until the conclusion of the annual meeting of shareholders
on May 22, 2008, but upon approval by shareholders at this annual meeting, the effective period was extended until theconclusion of the annual meeting of shareholders for the ﬁscal year ending on February 28, 2011. Additionally, thesetakeover defenses shall be terminated immediately if the board of directors comprising directors appointed at a general
meeting of shareholders decides to terminate these defenses.
(3) Board of directors opinion and reasoning for the foregoing initiatives
1) Speciﬁc initiatives to achieve our basic policy
The initiatives outlined above are intended to contribute to fulﬁlling our basic policy and have been prepared as speciﬁc policies
to ensure and enhance on an ongoing basis the company’s enterprise value and the common interests of shareholders.
Accordingly, these initiatives comply with our basic policy and will not damage the common interests of shareholders.
2) Initiatives in light of our basic policy to prevent inappropriate entities from controlling decision-making related
to the group’s ﬁnancial and business affairs
These takeover defenses comply in their content with our basic policy and are intended to ensure objectivity and rationality
in the decisions of the board of directors. Further, these defenses were adopted to ensure and enhance the company’s

HISAMITSU PHARMACEUTICAL CO., INC

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Overview of Operations

enterprise value and the common interests of shareholders, and are not intended to maintain the position of the company’s
directors.

3. Business and Other Risks
The following risks associated with our group’s business activities could have a signiﬁcant impact on the decisions ofinvestors.
Any forward-looking statements are based on our judgments at the end of FY 2/09.
(1) Legal and regulatory risks
Our mainstay pharmaceuticals and related products business is affected by a variety of regulations, including the national
health insurance drug price system and the healthcare insurance system. For example, the revision of national healthinsurance drug prices every two years places regular downward pressure on selling prices, and this could have a negative
impact on earnings. We are similarly affected by a variety of regulations overseas.
(2) Risks from side effects
Unforeseen side effects could force our mainstay pharmaceuticals and related products business to recall products orcancel product launches, which could have a negative impact on earnings.
(3) Research and development risks
We conduct research and development into new products and new technologies. However, earnings could be adversely
affected by the suspension of research and development activities for a variety of reasons, including failure to produce
anticipated results, or by the inability to recover research and development investment through sales.
(4) Manufacturing and procurement risks
We manufacture products using independent technology at our own plants. We rely on speciﬁc vendors to supply certain
products and raw materials. Consequently, earnings could be adversely affected by the suspension of manufacturing orpurchasing of these products and raw materials for some reason.
(5) Environmental risksSome of the chemicals used in our research and development activities and manufacturing processes can have an adverse
impact on human health and the surrounding environment. Although we take sufﬁcient safeguards, earnings could be
adversely affected if these substances are judged to be having a negative impact on the surrounding environment.
(6) Intellectual property risks
Our business activities could possibly be suspended or lead to litigation if they violate the patents or other intellectual
property rights of another company. We may also initiate ligation if another company violates our intellectual property rights.
Earnings could be adversely affected by the process and outcome of such actions.

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Overview of Operations(7) Litigation risks
Our business activities could possibly lead to litigation related to pharmaceutical side-effects and product liability. Earnings
could be adversely affected by the process and outcome of such actions.
(8) Other risks
In addition to the foregoing, other potential risks include natural disasters and the security of computer systems.

4. Important Business Agreements
Joint sales agreement
We concluded an agreement with Kyowa Hakko Kogyo Co., Ltd. (headquarters: Chiyoda-ku, Tokyo; company namecurrently Kyowa Hakko Kirin Co., Ltd.) on June 18, 2008 on joint sales in Japan of a transdermal sustained-release drug forthe treatment of cancer pain, which is currently under development by Hisamitsu Pharmaceutical.
(1) Counterparty to the agreement
Kyowa Hakko Kogyo Co., Ltd. (currently Kyowa Hakko Kirin Co., Ltd.)(2) Agreement details
Contract on the joint sale within Japan of a transdermal sustained-release drug for cancer pain (development code: HFT290) currently under development by Hisamitsu Pharmaceutical.
(3) Compensation
A one-time payment of $1,000 million for a distribution license fee will be recorded as extraordinary proﬁts.
Co-promotion agreement
We concluded an agreement with Banyu Pharmaceutical Co., Ltd. (headquarters: Chiyoda-ku, Tokyo) on January 23, 2009,
on co-promotion within Japan of the Banyu-manufactured and marketed drug Fosamac for osteoporosis.
(1) Counterparty to the agreement
Banyu Pharmaceutical Co., Ltd.
(2) Agreement details
Contract on co-promotion within Japan of the Banyu-manufactured and marketed drug Fosamac for osteoporosis.
(3) Compensation
Compensation commensurate with the results of the co-promotion

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Overview of Operations

Distribution agreement
We concluded an exclusive contract with Mundipharma International Limited of Switzerland on August 6, 2007, for theJapanese distribution rights to BTDS, a transdermal sustained-release pain relief patch. The agreement includes a one-time
payment at the conclusion of the contract and subsequent milestone payments based on development progress and sales.

5. Research and Development
Pharmaceuticals and related products
For ethical pharmaceuticals in Japan, we have ﬁled an NDA for HFT-290, a transdermal sustained-release drug for thetreatment of cancer pain. We have concluded a joint sales agreement on HFT-290 in Japan with Kyowa Hakko Kirin Co.,Ltd.
We have completed Phase III trials to demonstrate the analgesic effects of KPT-220 (generic name: ketoprofen) andhave now ﬁled an application for approval of the additional indication of rheumatoid arthritis pain for the anti-inﬂammatory
pain relief patch Mohrus Tape.
Mundipharma International Limited has now ﬁled an NDA in Japan for BTDS, a transdermal sustained-release pain
relief patch, for which we have concluded an in-licensing agreement.
We are currently conducting Phase II trials on HTU-520, a patch to treat Tinea unguium, and on HOB-294, a patch totreat overactive bladder.
In the United States, we are developing the ethical external-use anti-inﬂammatory pain reliever HKT-500 (generic name:
ketoprofen) as one of our overseas strategic products. We have conducted Phase III trials and are currently analyzing theresults. We have also ﬁled for the approval of the generic product HFG-512 for the relief of chronic pain.
For OTC pharmaceuticals, having received approval from the US Food and Drug Administration for the external-use antiinﬂammatory pain reliever FS-67 (generic name: methyl salicylate, L-menthol), we are now preparing to start postmarketingclinical studies in pediatric patients.
To expand the potential of transdermal treatments, we are working to improve our commercialization technologies
through in-house development of platform technologies and joint development with external organizations.

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Overview of Operations

Cable television broadcasting and other businesses
We do not conduct research and development in our cable television broadcasting business.
We conduct some research and development in other businesses, but because the amount is limited, it does not merit
special mention.
As a result of the foregoing, research and development expenditures totaled ¥9,615 million in FY 2/09.

6. Analysis of Financial Position and Operating Results(1) Analysis of ﬁnancial position in FY 2/09
1) Assets
Assets totaled ¥167,642 million at the end of FY 2/09, an increase of ¥17,891 million from the previous year, due mainly
to cash and deposits increasing by ¥3,224 million to ¥39,354 million as a result of sales growth and notes and accounts
receivable increasing by ¥8,108 million to ¥39,415 million.
2) Liabilities
Liabilities totaled ¥43,536 million at the end of FY 2/09, an increase of ¥7,715 million from the previous year, due mainly
to notes and accounts payable increasing by ¥3,128 million to ¥13,062 million as a result of raw material purchases
in response to sales growth, other payables increasing by ¥2,237 million to ¥9,936 million, and income taxes payable
increasing by ¥1,857 million to ¥8,838 million.
3) Net assets
Net assets totaled ¥124,105 million at the end of FY 2/09, an increase of ¥10,176 million from the previous year, due mainly
to dividend payments of ¥5,455 million, valuation adjustments on marketable securities decreasing by ¥2,481 million, andnet income of ¥19,120 million.
(2) Analysis of operating results in FY 2/09
1) SalesSales grew 4.7% year on year to ¥124,655 million. As a result of focusing on expanding sales of mainstay products, Mohrus
Tape L was up 124.7% to contribute to overall sales growth.
2) Operating income
Operating income grew 11.9% year on year to ¥32,532 million as a result of holding the rise in the cost of sales ratio to
1.7 percentage points by raising productivity and reducing manufacturing costs, and limiting growth in selling, general andadministrative expenses by reducing research and development expenditures.

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Overview of Operations

3) Ordinary income
Ordinary income grew 7.5% year on year to ¥32,476 million as a result of foreign exchange losses.
4) Net income
Net income grew 2.4% year on year to ¥19,120 million as a result of revenues from distribution license fees and valuation
adjustments on marketable securities. Consequently, earnings per share totaled ¥215.61 in FY 2/09, and return on equity
was 16.2%.

7. Capital Expenditures
Capital expenditures totaled ¥5,843 million in FY 2/09, due mainly to augmenting and expanding production and researchequipment.
In the pharmaceuticals and related products business, we mainly augmented production equipment at the Tosu plant andproduction equipment at the Utsunomiya plant, and expanded research equipment at the formulation research laboratories,
requiring capital expenditures of ¥2,301 million.
In the cable television broadcasting business, we mainly invested to expand bandwidth to provide digital capabilities toour subscribers, resulting in capital expenditures of ¥389 million.
We did not sell or remove any equipment that would affect production capacity in FY 2/09.

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Governance and Internal Auditing

Dividend Policy
Our basic policy is to continue paying stable dividends to shareholders. We pay special and commemorative dividends inlight of earnings and other factors in an effort to return proﬁts to shareholders.
We also implement various other ﬁnancial measures, such as company share buybacks, as effective means for returning
proﬁts to shareholders.
Our basic policy is to pay dividends from retained earnings twice yearly through interim dividends and year-end dividends.
The General Meeting of Shareholders is responsible for deciding on year-end dividends and the Board of Directors decides
on interim dividends.
In FY 2/09 we paid an interim dividend of ¥31.5 per share and a year-end dividend of ¥31.5 per share, for an annual
dividend of ¥63 per share.
We work to improve our business base through the targeted investment of internal reserves into research anddevelopment, manufacturing facilities, overseas business development, and other areas.
Our Articles of Incorporation stipulate that interim dividends can be paid based on a Board of Directors' resolution toshareholders or pledgees listed or registered in the ﬁnal shareholder registry at the end of August each year.
Note: Dividends in FY 2/09 are as follows.
Resolution date

Total dividends (¥ million)

Dividends per share (¥)

2,794

31.5

2,793

31.5

October 9, 2008
Board of directors resolution
May 26, 2009
General meeting of shareholders resolution

Corporate Governance(1) Basic approach to corporate governance
We have prepared basic internal control policies to enhance management transparency and ensure compliance, and we
consider the improvement of corporate government to be an important task. To this end, we have placed priority on creating
an organization capable of responding quickly to changes in the business environment and have implemented structuralreforms.
With this in mind, we have adjusted the number of directors to an appropriate level with the goals of enhancing the performance of the board of directors and speeding up decision making. We have also introduced an executive ofﬁce system

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Governance and Internal Auditing

to clarify roles and responsibilities in business execution.
Going forward, we seek to create a stronger bond of trust with our stakeholders as a good corporate citizen by improving
transparency, ensuring compliance, and upholding corporate ethics in our business activities.
(2) Corporate organization and internal control systems
Directors, executive ofﬁcers, and auditors
In the area of corporate governance, we reduced the number of directors and introduced an executive ofﬁcer system toclarify the responsibilities and authority of management and speed up decision-making and business execution.
We reduced the number of directors from 13 to nine at the annual general meeting of shareholders on May 22, 2003, andto bolster our management structure further, we changed the articles of incorporation to reduce the number of directors from13 or fewer to 10 or fewer at the annual general meeting of shareholders on May 25, 2006. In March 2003, we introduced
an executive ofﬁcer system to improve the speed, transparency, and strategic focus of business decisions.
Important management decisions are made by the Management Advisory Council comprising key directors and executive ofﬁcers, and important resolutions are debated and decided by the board of directors. We introduced an executiveofﬁcer system in March 2003 with the goals of accelerating management decisions and improving their transparency andstrategic focus. We have also worked to enhance management oversight and to separate, decentralize, and strengthen
decision-making functions and business execution functions.
To better facilitate fair auditing, we switched to an auditing system in which two of the four auditors comprise outside
auditors at the annual general meeting of shareholders on May 26, 2004. To bolster management oversight further andstrengthen our auditing system, we changed the articles of incorporation to increase the number of auditors from four or
fewer to six or fewer at the annual general meeting of shareholders on May 25, 2006.
Auditors attend meetings of the board of directors, regularly convene meetings of the board of auditors, and receive audit
reports from the independent auditor as needed. Our two outside auditors do not have any business relationships or otherinterests with the company.
Resolutions to appoint or remove directors(1) The articles of incorporation stipulate that resolutions to appoint directors require a majority vote of at least one-third of
shareholders capable of executing voting rights. Cumulative voting is not provided for.
(2) The articles of incorporation stipulate that resolutions to appoint auditors require a minimum two-thirds vote of shareholders owning a majority of the voting rights of shareholders capable of executing voting rights.

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ANNUAL REPORT 2009

Corporate Governance and Internal Auditing

Acquisition of treasury shares
To enable the ﬂexible execution of capital policy, the articles of incorporation stipulate that the company can repurchaseshares in the open market or through other means based on a board of directors resolution in accordance with Article 165of the Companies Act.
Interim dividends
To ﬂexibly return proﬁts to shareholders, the articles of incorporation stipulate that interim dividends from retained earnings,
as deﬁned in Article 454-5 in the Companies Act, can be paid based on a board of directors resolution to shareholders orpledgees listed or registered in the ﬁnal shareholder registry at the end of August each year.
Special resolutions of the general meeting of shareholders
To facilitate the smooth administration of general meetings of shareholders, the articles of incorporation stipulate that resolutions
based on Article 309-2 of the Companies Act require a minimum two-third vote of shareholders owning a minimum one-third of thevoting rights of shareholders capable of executing voting rights, except as otherwise provided for by the articles of incorporation.
Internal auditing
We established the Internal Audit Ofﬁce (two auditors) as an internal audit division. The Internal Audit Ofﬁce is responsible
for auditing the business activities of Hisamitsu Pharmaceutical and group companies to ensure that these activities are
effective and appropriate and that they comply with relevant laws and the articles of incorporation, reporting to the boardof directors and the board of auditors, promoting mutual cooperation, reporting to relevant business division managers anddirectors, and providing support and advice as needed to improve internal control.
Independent auditing
We have concluded an auditing contract with KPMG AZSA & Co. to serve as an independent auditor responsible for accounting auditing, and by providing accurate business information and taking other steps, we provide an environment conducive to fair auditing. There are no special interests between the company and KPMG AZSA & Co. and their designatedand engagement partners. We also receive advice as needed from advisory lawyers related to routine legal matters.
Audit certiﬁcation
In compliance with article 193-1-2 of the Financial Instruments and Exchange Law, KPMG AZSA & Co. audited the consolidated and non-consolidated ﬁnancial statements for the previous ﬁscal year (March 1, 2007 to February 29, 2008) andthe 106th ﬁscal period (March 1, 2007 to February 29, 2008), as well as for this ﬁscal year (March 1, 2008 to February 28,2009) and the 107th ﬁscal period (March 1, 2008 to February 28, 2009).

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Governance and Internal Auditing

Audit company providing auditing services
Audit company

Certiﬁed public accountants providing auditing services

Assisting personnel

KPMG AZSA & Co.

Designated and Engagement Partner

Hiromi Kimura

CPAs

5

KPMG AZSA & Co.

Designated and Engagement Partner

Yoshihide Takehisa

Other

10

Note: A statement on the years of continuous audit service is omitted because all auditors have served fewer
than seven years.
Corporate governance structure

General shareholders meeting
Appoint and remove

Appoint and remove

Audit

Independent auditor

Board of Directors
Directors

Audit

Representative
director

Management Advisory
Council
Directors and auditors
AdviceInternal Audit Ofﬁce

Committees
Compliance Promotion Committee
Crisis Management Committee
Privacy Protection Committee
Disclosure Policy Team

Audit

Advising attorneys and other specialists

Board of Auditors
Auditors
Operational andaccounting auditing

Appoint and remove

Various business divisions and group companies

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Governance and Internal Auditing(3) Risk management systems
To respond to a variety of business risks, we have sought to enhance risk management and corporate governance by
establishing a variety of internal committees.
Various committees
Compliance Promotion Committee and Compliance Promotion Ofﬁce
We prepared the Hisamitsu Corporate Charter in June 2002 and established the Compliance Promotion Committee andCompliance Promotion Ofﬁce, both headed by a director of public relations and human resources, to promote thoroughand ethical compliance. We have distributed handbooks to ofﬁcers and employees to promote a recognition and sustained
awareness of the importance of compliance, and have worked to ensure behavior based on high ethical and moral
standards.
Going forward, we will continue our efforts to bolster compliance related to social responsibility, including corporate
ethics, the environment, and privacy protection, at Hisamitsu Pharmaceutical and group companies.
Crisis Management Committee (Chair: President & CEO)We established a Crisis Headquarters to help prevent risk and prepare for times of crisis, established a permanent Crisis
Management Committee to operate in normal times, and conduct training of committee members as needed.
Privacy Protection Committee (Chair: Director of Human Resources)
We established the Privacy Protection Committee in April 2005 to fully comply with the Personal Information Protection
Act. We have called personal information administrators together and held committee meetings as needed to create anorganization to protect individual rights and interests and to ensure that this organization is safely managed.
Disclosure Policy Team (Chair: President & CEO)We established the Disclosure Policy Team in April 2001 to provide the timely and appropriate disclosure of corporate
information. All ofﬁcers and employees work toward timely disclosure based on our Disclosure Policy Rules.
We strive to actively disclose information to enhance management transparency and seek to promote smoothcommunication with shareholders and investors through our investor relations activities.

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Governance and Internal Auditing(4) Executive compensation
The company’s directors and auditors receive the following compensation.
Directors¥278 million

Auditors¥39 million (including ¥11 million for outside auditors)

Notes: 1. Includes retirement allowances for retired directors.
2. Directors’ compensation does not include employee salaries for directors who also serve as
employees.
3. There are no outside directors.
(5) Auditor compensation
The company’s independent auditor KPMG AZSA & Co. receives the following compensation.
Compensation for services stipulated in Article 2-1 of the Certiﬁed Public Accountants Law:
Compensation for other services:¥9 million¥33 million

Note: Services other than those stipulated in Article 2-1 of the Certiﬁed Public Accountants Law (non-auditing
services) comprise advisory services for preparing an internal control system for ﬁnancial reporting.

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Information

Stock Information(1) Total number of shares
1) Total number of shares
Type of shares

Total authorized shares

Ordinary shares

380,000,000

Total

380,000,0002)Shares issued and outstanding
Type of shares

Shares outstanding on
ﬁling date
(May 27, 2009)

Names of listing stock exchanges
or registered securities dealers
associations

Details

95,164,895

95,164,895

Tokyo Stock Exchange(First Section)
Osaka Securities Exchange(First Section)
Nagoya Stock Exchange(First Section)
Fukuoka Stock Exchange

All voting shares, standard
shares with unlimited rights(Share units: 100 shares)

95,164,895

95,164,895——

Shares outstanding at endFY 2/09
(February 28, 2009)

Ordinary shares

Total(2) Status of share subscription rights
Not applicable.
(3) Details of rights plans
Not applicable.
(4) Changes in shares outstanding, common stock, and other items

Date

Change in shares
outstanding(Shares)

Shares outstanding(Shares)

Change in common
stock(¥ million)

Common stock(¥ million)

July 5, 2002(Note)—

95,164,895

—

8,473

Change in additional Additional paid-in
capitalpaid-in capital(¥ million)(¥ million)−6,123

2,118

Note: The decrease in additional paid-in capital was based on provisions in Article 289-2 of the former
Commercial Code (creditor protection procedures were completed on July 5, 2002).

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Information(5) Details of shareholders
As of February 28, 2009
Status of shares (investment unit comprises 100 shares)
Category

National
and local
government

Foreign shareholders
Financial
institutions

Securities
companies

Other
corporations

Nonindividuals

Individuals

Individuals
and other

Total

Shares under
one unit(shares)

Shareholders(entities)

—

61

41

191

316

1

6,858

7,468

—

Shares owned(units)—497,032

3,413

150,881

125,64510

174,176

951,157

49,195

Ratio
(%)

—

52.26

0.36

15.86

13.21

0.00

18.31

100.00—Notes: 1. A total of 6,466,791 treasury shares are listed as 64,667 units in the individuals and other column andas 91 shares in the shares under one unit column. The 6,466,791 treasury share ﬁgure is the numberof shares listed in the shareholder registry.
2. The other corporations column includes three units owned under the name of the Japan Securities
Depository Center Inc.

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Information(6) Principal shareholders
As of February 28, 2009
Name

Address

Percentage ofShares owned
shares outstanding(thou shares)(%)

Japan Trustee Service Bank, Ltd. (trust account) 1-8-11 Harumi, Chuo-ku, Tokyo

6,190

6.50

Nippon Life Insurance Company

1-6-6 Marunouchi, Chiyoda-ku, Tokyo

6,108

6.42

The Master Trust Bank of Japan, Ltd.
(trust account)

2-11-3 Hamamatsu-cho, Minato-ku, Tokyo

4,757

5.00

2-2-2 Otemachi, Chiyoda-ku, Tokyo

4,387

4.61

1-8-11 Harumi, Chuo-ku, Tokyo

4,370

4.59

The Bank of Saga, Ltd.

2-7-20 Tojin, Saga

4,106

4.31

Fukuoka Bank

2-13-1 Tenjin, Chuo-ku, Fukuoka

3,871

4.07

Japan Trustee Service Bank, Ltd.
(trust account 4G)

1-8-11 Harumi, Chuo-ku, Tokyo

2,977

3.13

2,064

2.17

2,000

2.10

40,833

42.91

The Nomura Trust and Banking Co., Ltd.
(The Bank of Tokyo-Mitsubishi UFJ, Ltd.
pension trust account)
Japan Trustee Service Bank, Ltd.
(Resona Trust & Banking Co., Ltd. retrust
account, The Nishi-Nippon City Bank, Ltd.
pension trust account)

Japan Trustee Service Bank, Ltd.
(The Sumitomo Trust & Banking Co., Ltd. retrust
1-8-11 Harumi, Chuo-ku, Tokyoaccount, Sumitomo Mitsui Banking Corporation
pension trust account)
Japan Trustee Service Bank, Ltd.
(Resona, Trust & Banking Co., Ltd. retrust
1-8-11 Harumi, Chuo-ku, Tokyoaccount, Resona Bank, Limited pension trust
account)
Total

Notes: 1. The number of the foregoing shares related to ﬁduciary services is as follows.
Japan Trustee Service Bank, Ltd.: 17,602,000 shares
The Master Trust Bank of Japan, Ltd.: 4,757,000 shares
The Nomura Trust and Banking Co., Ltd. 4,387,000 shares
2. In addition to the shares listed above, the company owns 6,466,000 treasury shares (6.80%).

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Information(7) Status of voting rights
1) Shares issued
As of February 28, 2009
SharesVoting rights

Details

Shares without voting rights

—

—

—

Shares with limited voting rights(treasury shares, etc.)

—

—

—

Shares with limited voting rights(other)———(Treasury shares) Ordinary shares
6,466,700—

Standard shares with unlimited
rights(Cross-held shares) Ordinary shares
64,000—Same as above

Shares with full voting rights (other)

Ordinary shares
88,585,000

885,850Same as above

Shares less than one unit

Ordinary shares
49,195—Same as above

95,164,895

—

—

—

885,850—

Shares with full voting rights(treasury shares, etc.)

Total shares issued
Total voting rights of shareholders

Note: 1. Ordinary shares in the shares with full voting rights (other) section include 300 shares with three voting
rights held under the name of Japan Securities Depository Center, Inc.
2. The shares with less than one unit section includes 91 treasury shares held by the company.

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Information

2) Treasury shares and cross-held shares
As of February 28, 2009
Shares held under thename of others

Total shares held

6,466,700—

6,466,700

6.79

892-1 Hikata Ogori-shi,
Fukuoka

23,00041,00064,0000.07—

6,489,700

41,0006,530,700

6.86

Address(Treasury shares)
408 Tashiro DaikanHisamitsu
machi, Tosu-shi Saga
Pharmaceutical Co., Ltd.
(Cross-held shares)
Maruto Co., Ltd.

Ratio to shares
outstanding (%)

Shares held under own
nameShareholders

Total

Note: 1. Reason for holding shares under the name of others
ReasonJointly held shares in shareholding
company

Name

Address

Hisamitsu Pharmaceutical Torihikisaki
Mochikabukai

Tashiro Daikan-machi, Tosu-shi Saga

(8) Stock option plans
Not applicable.

HISAMITSU PHARMACEUTICAL CO., INC

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ANNUAL REPORT 2009

Corporate Information

Acquisition of Treasury Shares
Share types

Acquisition of common stock according to articles 155-3 and 155-7 of the Companies Act(1) Acquisition based on a resolution by the general meeting of shareholders
Not applicable.
(2) Acquisition based on a resolution by the board of directors
Not applicable.
(3) Acquisition not based on a resolution by the general meeting of shareholders or the board of directors
SharesTotal value (¥)

Treasury shares acquired during FY 2/08

14,533

66,768,650

Treasury shares acquired during FY 2/09

171494,850

Note: Treasury shares acquired during FY 2/09 do not include shares acquired for less than one unit between
May 1, 2009 and the ﬁling date of this annual securities report.
(4) Treatment and holding of acquired treasury shares
FY 2/08

FY 2/09

SharesTotal amount(¥ thousand)SharesTotal amount(¥ thousand)Acquired treasury shares that were offered to subscribers

—

—

—

—

Acquired treasury shares that were retired

—

—

—

—

Acquired treasury shares that were transferred in relation to merger, share exchange,or corporate separation

—

—

—

—

—

—

—

—

6,466,791—

7,466,962—

Other
Held treasury shares

Note: Treasury shares acquired during FY 2/09 do not include shares acquired for less than one unit between
May 1, 2009 and the ﬁling date of this annual securities report.

HISAMITSU PHARMACEUTICAL CO., INC

26

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Consolidated Balance Sheets(Millions of yen)
Fiscal 2008
Fiscal 2009
(to February 28, 2009)
Value(Thousands of U.S. dollars)
Fiscal 2009

(Assets)
I Current assets
Cash and deposits¥ 36,129¥ 39,354$ 402,351

Trade notes and accounts

31,30739,415402,978

Marketable securities

2,332

4,169

42,624Inventories

8,635

9,180

93,860

Deferred tax assets

1,345

2,133

21,811

909

975

9,969

Allowance for doubtful accounts

Others

(171)

(217)

(2,224)

Total current assets

80,48895,009971,372

Buildings and structures (Note 2,3)

16,66815,971

163,289

Machinery, equipment and vehicles (Note 2)

7,023

6,589

67,365

II Fixed assets
1 Property, plant and equipment

Tools, furniture and ﬁxtures (Note 2)

2,052

2,287

23,383

Land (Note 4)

11,374

11,389116,449

Construction in progress

3,181

4,088

41,800

Tangible ﬁxed assets total

40,29940,325412,288

Goodwill

4,216

2,102

21,490Software

38

19

199

Temporary account for intangible ﬁxed assets

—

2,704

27,655

1,209

13

140

5,464

4,840

49,486

Investment securities (Note 1)

14,872

13,465

137,664

Long-term loans receivable

512

361

3,693

2 Intangible assets

OthersTotal intangible assets
3 Investments and other assets

Long-term deposits

—

1,900

19,425Prepaid pension expenses

3,853

5,346

54,657

Deferred tax assets

2,154

4,588

46,907

Others

2,263

1,960

20,044

Allowance for doubtful accounts

(159)

(154)

(1,577)

Total investments and other assets

23,497

27,466

280,815

69,262

72,632

742,590¥ 149,750¥ 167,642$ 1,713,963

Total ﬁxed assets
Total assets

HISAMITSU PHARMACEUTICAL CO., INC

27

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)(Millions of yen)
Fiscal 2008
Fiscal 2009
(to February 28, 2009)
Value(Thousands of U.S. dollars)
Fiscal 2009

(Liabilities)
I Current liabilities¥ 9,933¥ 13,062

Short-term borrowings (Note 2)

1,038

1,047

10,706

Accounts payable

7,699

9,936

101,594

Income taxes payable

Trade notes and accounts$ 133,545

6,980

8,838

90,362

Allowance for sales returns

157

213

2,182

Provision for bonuses

808

844

8,631

Others

988

704

7,199

27,606

34,646354,221

Total current liabilities
II Long-term liabilities

842

881

9,016

Deferred tax liabilities on revaluation (Note 4)

2,164

2,164

22,125

Employees’ severance and retirement beneﬁts

4,071

4,554

46,569Directors’ and corporate auditors’ retirement beneﬁts

1,102

1,172

11,985

35

117

1,198

Long-term borrowings (Note 2)

OthersTotal long-term liabilities

8,215

8,890

90,895

Total liabilities

35,82143,536445,116

8,473

8,473

86,635

I Shareholders’ equity
Common stock
Capital surplus

8,396

8,396

85,843Retained earnings

106,010

119,650

1,223,292

Treasury stock(12,504)(12,571)(128,532)

110,376

123,948

1,267,238

326(2,154)(22,023)

3,188

3,188

32,599Foreign currency translation adjustments(712)(1,596)(16,320)

Total valuation and translation adjustments etc.

2,803

(561)

(5,744)

Total shareholders’ equity
II Valuation and translation adjustments
Valuation adjustment on other marketable securities
Land revaluation adjustment (Note 4)

III Minority interests
Total net assets
Total liabilities and net assets

HISAMITSU PHARMACEUTICAL CO., INC

28

750

719

7,352

113,929

124,105

1,268,846¥ 149,750¥ 167,642$ 1,713,963

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Consolidated Statements of Income(Millions of yen)(Thousands of U.S. dollars)
Fiscal 2008
Fiscal 2009
Fiscal 2009
(March 1, 2007 to February 28, 2009)
Value
I Net sales¥ 119,061

II Cost of sales (Note 2, 3)

36,101Gross proﬁt

82,960

III Selling, general and administrative expenses (Note 1, 2)

53,888Operating income

29,071¥ 124,655
39,884
84,771
52,23932,532$ 1,274,467
407,773866,693534,087332,605

237
241
—

2,424
2,464
—

42
114
685

429
1,169
7,004

19
1,194
53
108
32,476200
12,213547
1,106
332,032

4
53
701
1,000
94

42
551
7,174
10,223
969

515
92
—
—
0

5,270

1,509
—

15,436—

4
32,208
14,584(1,564)67¥ 19,12043
329,293
149,112(15,995)692$ 195,483

IV Non-operating income
Interest received

152

Dividend income

170

Amortization of negative goodwill

24

Equity in earnings of afﬁliated companies

264

Development license revenues

193

Other

616

V Non-operating expenses
Interest expenses

21

Foreign exchange losses

90

Loss on sales of receivables

45

Others130

Recurring income

30,204

VI Extraordinary income
Reversal of allowance for doubtful accounts

5

Gain on liquidation of afﬁliates—

Gain on return of welfare pension fund substitutional portion

701

Distribution license fees—

Others—VII Extraordinary losses
Loss on disposals of ﬁxed assets (Note 4)

121

Advanced depreciation deduction of property, plant and equipment—

Asset impairment losses (Note 5)292

Loss on liquidation of afﬁliates

5

Loss on sales of investment securities

130

Book loss on investment securities

22

Additional severance beneﬁts

133

Others—

Net income

30,206

Corporate, other taxes

11,521

Income taxes: deferred(44)

Minority interests (deduction)

66

Net income

HISAMITSU PHARMACEUTICAL CO., INC¥ 18,663

29

—
—
3

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Statement of Changes in Consolidated Shareholders’ Equity
Shareholders’ equity
CommonStock
Balance, February 29, 2008
(Millions of yen)

8,473

CapitalsurplusRetainedearnings

8,396

106,010

Treasury
stock

Total
shareholders’ equity(12,504)

Total
shareholders’ equity(Thousands of
U.S. dollars)

110,376

1,128,475

Changes during ﬁscal term
Final dividends paid from retained earnings(2,661)(2,661)(27,209)

Interim dividends paid from retained
earnings(2,794)(2,794)(28,569)

Net income

19,12019,120195,483

(67)

(692)

(24)

(249)

Purchases of treasury stock(67)

Surplus decrease due to change in thescope of equity method
Total changes during ﬁscal term(Millions of yen)
Balance,February 28, 2009
(Millions of yen)

(24)

—

—

13,640(67)

13,572

138,763

8,473

8,396

119,650(12,571)

123,948

1,267,238

Valuation and translation adjustments etc.
Other
Foreign
Total valuation
MarketableLand
currency
and translation
securities
revaluationtranslation
adjustments
Valuation
adjustment
adjustments
etc.
gains (losses)
account
Balance, February 29, 2008
(Millions of yen)

327

3,188

(712)

2,803

Minority
interests

750

Total
net assets

Total
net assets(Thousands of
U.S. dollars)

113,929

1,164,805

Final dividends paid from retained earnings(2,661)(27,209)

Interim dividends paid from retained earnings(2,794)(28,569)

Net income

Changes during ﬁscal term

19,120195,483

Purchases of treasury stock

(67)

(692)

Surplus decrease due to change in the scopeof equity method

(24)

(249)

Changes during ﬁscal term in items notincluded in shareholders’ equity (net)(2,481)—(883)(3,365)(31)(3,396)(34,721)

Total changes during ﬁscal term(Millions of yen)

(2,481)—(883)(3,365)(31)

10,176

104,041

Balance, February 28, 2009
(Millions of yen)

(2,154)

3,188(1,596)

(561)

719

124,105

1,268,846

HISAMITSU PHARMACEUTICAL CO., INC

30

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Consolidated Statements of Cash Flows(Millions of yen)(Thousands of U.S. dollars)
Fiscal 2008
Fiscal 2009
Fiscal 2009
(March 1, 2007 to February 28, 2009)
Value
I Cash ﬂows from operating activities
Income before income taxes¥ 30,206¥ 32,208$ 329,293

Depreciation and amortization

3,429

4,765

48,726

Asset impairment losses

292

—

—

Amortization of goodwill

2,114

2,114

21,617

Amortization of negative goodwil

(24)

—

—

Reduction in provision for employees’ severance and retirement beneﬁts

(306)

505

5,163

Increase in provision for corporate ofﬁcers’ retirement beneﬁts

(64)

70

718

Increase in provision for bonuses

120

35

360

9

41

425

Reduction in provision for sales returns

(10)

56

575

Interest and dividend income

(323)

(478)

(4,888)Interest expenses

21

19

200

Foreign currency gains

92

23

244

Reduction in provision for doubtful accounts

Equity in losses of afﬁliated companies (Negative sign denotes earnings)

(264)

(42)

(429)

Loss on disposal of shares in afﬁliates

5

—

—

Losses on sales of investment securities

130

0

3

Book loss on investment securities

22

1,509

15,436

Loss on disposal of ﬁxed assets

121

515

5,270

Additional severance beneﬁts

133

—

—

(2,916)(8,416)(86,050)

Increase in inventories

279

(784)

(8,021)

Increase in other current assets

178

(105)

(1,078)Contributions in kind

621

—

—

Increase in notes and accounts payable (Negative sign denotes decrease)

946

3,330

34,050

Increase in other current liabilities (Negative sign denotes decrease)

750

693

7,093

Increase in notes and accounts receivable

Others(820)(1,665)(17,038)

34,74534,397

351,671

Interest and dividends received

316

758

7,749

Interest paid

(21)

(19)

(200)

(133)

—

—

Subtotal

Additional severance beneﬁts
Income taxes paid
Cash ﬂows from operating activities

HISAMITSU PHARMACEUTICAL CO., INC

31(9,184)(12,752)(130,380)¥ 25,722¥ 22,382$ 228,840

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)(Millions of yen)(Thousands of U.S. dollars)
Fiscal 2008
Fiscal 2009
Fiscal 2009
(March 1, 2007 to February 29, 2008)
Value
II Cash ﬂows from investing activities
Outﬂow resulting from change in balance of term deposits
Expenditure associated with increase or decrease of long-term deposits¥ (569)¥ (2,901)$ (29,670)—(1,300)(13,291)(8,365)(4,475)(45,752)

0

20

204

Proceeds from sales of ﬁxed intangible assets(1,197)(1,511)(15,456)

Payments for purchases of marketable securities(7,074)(10,794)(110,360)

8,291

9,247

94,547(3,546)(4,558)(46,610)Proceeds from sales and redemptions of investment securities

170

65

669

Outﬂow from loans extended

(16)

(17)

(182)

Proceeds from loan repayments

396

206

2,113

Outﬂow on purchases of shares in subsidiaries

0

—

—

Others—92948(11,911)(15,927)(162,838)

(27)

124

1,272

59

245

2,509

Payments for purchases of tangible ﬁxed assets
Payments for purchases of ﬁxed intangible assets

Proceeds from sales and redemptions of marketable securities
Payments for purchases of investment securities

Cash ﬂows from investing activities
III Cash ﬂows from ﬁnancing activities
Inﬂow (Negative sign denotes outﬂow) from change in short-term borrowings
Proceeds from long-term borrowings
Outﬂow from repayments of long-term borrowings(2,677)(279)(2,860)

Dividend payments to minority investors

(34)

(48)

(491)

Outﬂow from purchases of treasury stock

(8

(66)

(682)

(4,790)(5,433)(55,553)

Cash dividends paid
Others

—

(9)

(97)

(7,479)(5,467)(55,903)

IV Translation adjustment cash & equivalents

(135)

(337)

(3,452)

V Increase in cash and cash equivalents (Negative sign denotes decrease)

Cash ﬂows from ﬁnancing activities

6,196

650

6,645

VI Balance of cash and cash equivalents at beginning of year

26,51032,706334,391

VII Balance of cash and cash equivalents at end of year (Note 1)¥ 32,706¥ 33,356$ 341,037

HISAMITSU PHARMACEUTICAL CO., INC

32

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Consolidated Financial Statements
1. Basis of preparation of consolidated ﬁnancial statements(1) The company has prepared consolidated ﬁnancial statements in accordance with the Regulations Concerning the
Terminology, Forms and Preparation Methods of Consolidated Financial Statements (Ministry of Finance Ordinance No.
28, 1976; hereinafter, Regulations for Consolidated Financial Statements).
However, the consolidated ﬁnancial statements for FY 2/08 (March 1, 2007 – February 29, 2008) were prepared basedon the Regulations for Consolidated Financial Statements prior to revision, whereas the consolidated ﬁnancial statements
for FY 2/09 (March 1, 2008 – February 28, 2009) were prepared based on the Regulations for Consolidated Financial
Statements after revision.
(2) The company has prepared non-consolidated ﬁnancial statements in accordance with the Regulations Concerning the
Terminology, Forms and Preparation Methods of Non-Consolidated Financial Statements (Ministry of Finance Ordinance
No. 59, 1963; hereinafter, Regulations for Non-Consolidated Financial Statements).
However, the non-consolidated ﬁnancial statements for FY 2/08 (March 1, 2007 – February 29, 2008) were preparedbased on the Regulations for Non-Consolidated Financial Statements prior to revision, whereas the non-consolidated
ﬁnancial statements for FY 2/09 (March 1, 2008 – February 28, 2009) were prepared based on the Regulations for NonConsolidated Financial Statements after revision.
I.Scope of consolidation(a) Consolidated subsidiaries: 10
Names of consolidated subsidiaries
Taiyo Co., Ltd
Kyudo Co., Ltd
Saga City-Vision Co., Ltd.
CRCC Media Co., Ltd.
Hisamitsu Agency Co., Ltd.
Hisamitsu America, Inc.
Hisamitsu Farmaceutica do Brasil Ltda.
Hisamitsu Vietnam Pharmaceutical Co., Ltd.
Hisamitsu UK Ltd.
P.T. Hisamitsu Pharma Indonesia(b). Non-consolidated subsidiaries: 2
Names of non-consolidated subsidiaries
Kokusai Pappu-zai Kenkyusho Co., Ltd.
Taiyo Kaihatsu Co., Ltd.

HISAMITSU PHARMACEUTICAL CO., INC

33

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)(Reason why non-consolidated subsidiaries have been excluded from the scope of consolidation)
Non-consolidated subsidiaries have been excluded from the scope of consolidation because they are small, and neither
their total assets, net sales, net income (proportion attributable to Group) nor retained earnings (proportion attributable toGroup) would have a material impact on the consolidated ﬁnancial statements.
II. Afﬁliates accounted for under the equity method(a). Equity-method non-consolidated subsidiaries: 0(b). Equity-method afﬁliates: 1
Maruto Co., Ltd.
Taiwan Hisamitsu Pharmaceutical Co., Ltd. was liquidated, so this company was excluded from the equity method afﬁliatesfrom this ﬁscal year.
(Reason why non-consolidated subsidiaries have not been accounted for under the equity method)
The above non-consolidated subsidiaries have not been accounted for under the equity method because their impacts
on items such as net income and retained earnings is negligible, and is not material in the context of the total.
There are no afﬁliated companies for which the equity method is not being used.
III. Fiscal years of consolidated subsidiaries
The following consolidated subsidiaries have ﬁscal year-end dates that differ from consolidated accounts.
Company Year-end dateHisamitsu America, Inc.

December 31

Hisamitsu Farmaceutica do Brasil Ltda.

December 31

Hisamitsu Vietnam Pharmaceutical Co., Ltd.

December 31

Hisamitsu UK Ltd.

December 31

P.T. Hisamitsu Pharma Indonesia

December 31

Since for the above consolidated subsidiaries the difference from the term end used in the consolidated accounts does
not exceed three months, the ﬁnancial statements of these consolidated subsidiaries as at their term ends have beenused.
In any case where an important transaction has occurred between the term ends of these subsidiaries and the term endof the consolidated accounts, the necessary consolidation adjustments have been made.

HISAMITSU PHARMACEUTICAL CO., INC

34

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

IV. Accounting standards
A. Valuation standards and methods for signiﬁcant assets
1. Securitiesa) Held-to-maturity bonds
Valued under amortized cost method.
b) Other marketable securities
1) Securities with market value
Valued at market price, using the market price at the balance sheet date.
All valuation differences are directly charged or credited to shareholders’ equity, and costs of securities sold arecomputed using the moving average method.
2) Securities without market value
Valued at cost, determined by the moving average method.
2. Inventoriesa) Merchandise and ﬁnished products
Valued at cost, mainly using the period average method.
b) Raw materials, work in progress and supplies
At cost, mainly using the ﬁrst-in ﬁrst-out method.
(Change in accounting method)
Inventories were previously valued at cost using the ﬁrst-in ﬁrst-out method, but from the ﬁscal term under review, thecompanies’ merchandise and ﬁnished goods have been valued at cost using the period average method. This change
has been made along with the introduction of a new accounting system as part of a company-wide review of thebusiness, and is intended to accelerate the calculation of payments and receipts, and to enable management to grasp
period proﬁts and losses more quickly. The monetary effect of this change is minimal.
B. Depreciation methods for signiﬁcant depreciable assets
1. Property, plant and equipmenta) Company and domestic consolidated subsidiaries(1) Acquired before March 31, 2007
Mainly the former declining balance method.
(2) Acquired after April 1, 2007
Mainly the declining balance method.
(Change in accounting method)

HISAMITSU PHARMACEUTICAL CO., INC

35

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Changed to the method prescribed in the revised Corporation Tax Law for assets acquired after April 1, 2007 as aresult of revisions of the Corporation Tax Law (Law Amending the Income Tax Law, March 30, 2007, Law No. 6 andOrdinance Amending the Income Tax Law Enforcement Ordinance, March 30, 2007, Ordinance No. 83). This change
has a negligible impact on income.
Additional information
Beginning this ﬁscal year, items acquired prior to March 31, 2007, will be amortized in equal amounts up to theallowable limit for depreciation for ﬁve years starting in the next year after the end of amortization.
This change will have a minimal impact on proﬁts and losses.
b) Overseas consolidated subsidiaries
Mainly straight-line method.
2. Intangible ﬁxed assets and long-term prepaid expenses
Amortized using the straight line method
For usable lives, the same criteria as those stipulated in the Corporation Tax Law are used. Goodwill is amortized on astraight-line basis over 5 years.
Within intangible ﬁxed assets, software used by the Company is depreciated over its useful life (5 years) using the straightline method.
C. Standards for signiﬁcant reserves and allowances
1. Allowance for doubtful accounts
In order to provide against losses from doubtful receivables, estimated irrecoverable amounts are recorded as a provision.
a) General receivables
Based on historical bad debt experience.
b) Receivables at risk of default and in bankruptcy reorganization
Based on an assessment of the ﬁnancial position.
2. Allowance for sales returns
In order to provide against losses from product returns after the balance sheet date, the company makes a provision up to
the maximum amount allowed under the Corporation Tax Law.
3. Bonus reserve
To provide for the payment of bonuses to employees, the Company and its domestic subsidiaries record a provision equal
to the portion of expected future bonus payments incurred during the term under review.
4. Allowance for employee retirement beneﬁts
The company and certain subsidiaries, to prepare for the payment of retirement beneﬁts to employees, provide a reserve
HISAMITSU PHARMACEUTICAL CO., INC

36

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)at an amount based on estimated retirement beneﬁt obligations and pension assets at the end of the consolidated ﬁscal
year.
Actuarial differences are amortized starting in the next consolidated ﬁscal year in equal amounts for a ﬁxed number ofyears (ﬁve years) that is less than the average remaining years of service of employees when incurred. Prior service costs
are amortized in equal amounts for a ﬁxed number of years (two years) that is less than the average remaining years ofservice of employees when incurred.
5. Allowance for directors and statutory auditors retirement beneﬁts
The company makes a provision for estimated retirement payments to directors and statutory auditors in accordance with
its internal regulations.
D. Translation of signiﬁcant foreign currency denominated assets and liabilities used in preparing the ﬁnancial
statements of consolidated companies on which the consolidated ﬁnancial statements are based
Assets and liabilities denominated in foreign currencies are translated into yen using the spot exchange rate for ﬁnal dayof the ﬁscal year, and translation differences are booked as gains or losses. Note that the assets and liabilities of overseas
subsidiaries and other like entities are translated into yen using the spot exchange rate for ﬁnal day of the ﬁscal year, while
revenues and expenses are translated using the average exchange rate for the period, and these translation differences
are booked on the Foreign Currency Translation Adjustments line under Net Assets.
E. Treatment of signiﬁcant lease transactions
With the exception of ﬁnance leases in which ownership of the leased assets is deemed to have passed to the lessee,
leases are accounted for as operating lease transactions.
F. Other signiﬁcant accounting policies used in the preparation of the consolidated ﬁnancial statements
Treatment of Consumption Tax etc.
The accounts are prepared excluding Consumption Tax and Local Consumption Tax.
V. Valuation of assets and liabilities of consolidated subsidiaries
Assets and liabilities of consolidated subsidiaries are valued using the full market value method.
VI. Amortization of consolidation adjustments account
The consolidation adjustments account is amortized on a straight-line basis over 5 years. However, where sums are small,they are expensed in full in the term in which they are incurred.

HISAMITSU PHARMACEUTICAL CO., INC

37

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

VII. Note concerning treatment of income appropriation items.
Income appropriations in the consolidated statements of retained earnings are based on ﬁnalized income appropriations
during the term.
VIII. Scope of funds in the Consolidated Statements of Cash Flows
Funds (cash & cash equivalents) in the Consolidated Statements of Cash Flows consist of cash in hand, demand deposits
and easily realizable short-term investments with high liquidity and maturity dates not more than 3 months from the date ofpurchase, and which carry negligible risks of price ﬂuctuation.

Changes In Accounting Policies
Consolidated Balance Sheets
The intangible assets suspense account exceeded 1/100th of total assets, so this was listed as a separate item from thisﬁscal year. The intangible assets suspense account for the previous ﬁscal year was ¥1,198 million included in the item
Others.
Long-term deposits exceeded 1/100th of total assets, so this was listed as a separate item from this ﬁscal year. Longterm deposits for the previous ﬁscal year were ¥600 million and included in the item Others.

HISAMITSU PHARMACEUTICAL CO., INC

38

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Additional Information
CONSOLIDATED BALANCE SHEETS*1 Investment securities for non-consolidated subsidiaries and afﬁliated companies are as follows.
(Millions of yen)
Investment securities (stocks)¥1,200*2 Assets pledged as collateral are as follows.
(Pledged assets)
Buildings and structures¥ 803(book value)

Machinery, equipment, and vehicles¥ 44(book value)

Tools, furniture, and ﬁxtures¥ 127(book value)

Total

¥ 975

(book value)¥ 512(book value)¥6(book value)¥ 126(book value)¥ 645(book value)

Assets provided for factory foundation mortgage
Buildings and structures
Machinery, equipment, and vehicles
Tools, furniture, and ﬁxtures
Total(Millions of yen)
Liabilities related to the above assets
Short-term borrowings¥ 132(book value)

Long-term borrowings¥ 592(book value)

Total

¥ 725

(book value)

Liabilities provided for factory foundation mortgage
Short-term borrowings¥ 55

Long-term borrowings

¥ 278

Total

¥ 333

*3 Accelerated depreciation from government subsidies is ¥915 million. This ﬁgure is not included in the consolidatedbalance sheets.
*4 Application of the Land Revaluation Law
Land used for business purposes has been revalued in accordance with the “Act on revaluation of land” (Law 34 of 1998,
promulgated on 31 March 1998) and the “Law Partially Amending the Act on Revaluation of Land” (revision of 31 March
1999). The portion of the revaluation gain equivalent to corporation tax and other taxes with tax bases linked to corporate
proﬁts has been recorded under liabilities as “Deferred tax liability related to revaluation,” while the net sum after thistransfer to the deferred tax liability account is recorded under net assets as “Land revaluation adjustment”

HISAMITSU PHARMACEUTICAL CO., INC

39

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Revaluation method
The land value used as the basis for calculation of the tax base under the Land Value Tax, stipulated in Article 16 of theLand Value Tax Law (Law No. 69 of 1991), has been calculated by making rational adjustments to the price calculated by
the method determined and publicly announced by the Commissioner of the National Tax Agency, as stipulated in Article
2.4 of the “Regulations for Applying the Land Revaluation Law” (Government Ordinance No. 119 of 1998, promulgated 31
March 1998).
Revaluation dateFebruary 28, 2001

The market value of commercial land revalued in accordance with Article 10 of the Land Revaluation Law at the end of ﬁscal
2009 was ¥1,877 million lower than the book value after revaluation.
CONSOLIDATED INCOME STATEMENT*1 Main selling, general, and administrative expense items and amounts are as follows.
(Millions of yen)
Advertising expenses¥ 9,306

Sales promotion expenses¥ 11,029

Packing and transportation expenses¥ 2,595

Addition to allowance for doubtful accounts¥ 51

Salaries and allowances¥ 5,622

Addition to bonus reserve¥ 504

Addition to allowance for employee retirement beneﬁts¥ 62

Addition to allowance for executive retirement beneﬁts¥ 95

Goodwill amortization¥ 2,114

Research and development expenses¥ 9,615Addition to bonus reserve¥ 152

Addition to allowance for employee retirement beneﬁts¥19

The addition to the allowance for employee retirement beneﬁts is a negative ﬁgure because expected investment returns
and actuarial gains were higher than service costs and interest costs.
General and administrative expenses include research and development expenses of 9,615 million. Manufacturing costs
do not include research and development expenses.
*3 Manufacturing costs include an addition to the bonus reserve of ¥185 million and an addition to the allowance for
employee retirement beneﬁts of ¥54 million.

HISAMITSU PHARMACEUTICAL CO., INC

40

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)*4 Breakdown of losses on the disposal of ﬁxed assets(Loss on retirement)(Millions of yen)

Buildings and structures¥ 460

Machinery, equipment, and vehicles¥ 37

Tools, furniture, and ﬁxtures

¥ 17

Total

¥ 515

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS EQUITY
1. Shares outstanding
Type of shares

End of ﬁscal 2007

Ordinary shares

95,164,895

Increase

Decrease

End of ﬁscal 2008
95,164,895

2. Treasury shares
Type of shares End of ﬁscal 2007 Increase
Type of shares

End of ﬁscal 2007

Increase

Decrease

End of ﬁscal 2008

Ordinary shares

6,477,487

14,751–-

6,492,238

Reasons for changes
Shares increased for the following main reasons
Increase from purchasing shares in less than one unit
Company portion of treasury shares purchased by equity method afﬁliates

14,533 shares
218 shares

3. Dividends(1) Dividends paid
Resolution

Type of shares

Total dividends(¥ million)

Dividends per share (¥)

Record date

Payment date

May 22, 2008
Annual general meeting ofshareholders

Ordinary shares

2,661

30

February 29, 2008

May 23, 2008

October 9, 2008
Board of Directors meeting

Ordinary shares

2,794

31.5

August 31, 2008

November 4, 2008

HISAMITSU PHARMACEUTICAL CO., INC

41

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)(2) Dividends with a record date in ﬁscal 2008 but a payment date in ﬁscal 2009
Resolution

Type of shares

Source of dividend

Total dividends(¥ million)

Dividends per share(¥)

Record date

Payment date

May 26, 2009
Annual general meeting ofshareholders

Ordinary shares

Retained earnings

2,793

31.5

February 28, 2009

May 27, 2009

CONSOLIDATED CASH FLOW STATEMENT*1 Relationship between year-end balances of cash and cash equivalents and amounts stated in the consolidatedbalance sheets(Millions of yen)
Cash and deposits¥ 39,354
Securities¥ 4,169
Total¥ 43,523
Term deposits longer than three months¥ (6,838)
Securities with maturities longer than three months
Cash and cash equivalents¥ (3,327)¥ 33,356

LEASE TRANSACTIONS
Lease transactions other than ﬁnance leases in which ownership of the leased asset is deemed to have passed to thelessee1. Equivalent purchase value, equivalent accumulated depreciation, and equivalent year-end residual value ofleased assets(Millions of yen)
Purchase value equivalent(¥ million)

Accumulated depreciation equivalent(¥ million)

Year-end balance at equivalent(¥ million)

Machinery, equipment and vehicles

¥ 421

¥ 102

¥ 319

Tools, furniture, and ﬁxtures

1,187

580

606

45

21

24

¥ 1,654

¥ 704

¥ 950

SoftwareTotal

2. Equivalent year-end balance of remaining lease payments(Millions of yen)
Within one year

¥ 291

Over one year

¥ 658

Total

¥ 950

HISAMITSU PHARMACEUTICAL CO., INC

42

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

3. Lease payments and equivalent depreciation(Millions of yen)
Lease payments¥ 348

Equivalent depreciation¥ 348

4. Method of calculating equivalent depreciation
SECURITIES
1. Held-to-maturity bonds with market value(Millions of yen)
Fiscal 2008 (February 29, 2008)
Consolidatedbalance sheetsvalue

Market value

Fiscal 2009 (February 28, 2009)

Difference

Consolidatedbalance sheetsvalue

Market value

DifferenceMarket value higher than on consolidated balance sheets(1) National and local government bonds, etc.

¥—

¥—

¥—

¥—

¥—

¥—

(2) Corporate bonds

—

—

—

—

—

—

(3) Other

—

—

—

—

—

—

Subtotal

—

—

—

—

—

—

Market value lower than on consolidated balance sheets(1) National and local government bonds, etc.

—

—

—

—

—

—

(2) Corporate bonds

199

199

(0)

299

297

(2)

(3) Other

—

—

—

300

288

(11)

Subtotal

199

199

(0)

599

585

(14)

¥ 199

¥ 199

¥ (0)

¥ 599

¥ 585

¥ (14)Total

HISAMITSU PHARMACEUTICAL CO., INC

43

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

2. Other securities with market value(Millions of yen)
Fiscal 2008 (February 29, 2008)

Fiscal 2009 (February 28, 2009)

Acquisition cost

Consolidatedbalance sheets
value

Difference

Acquisition cost

Consolidatedbalance sheets
value

Difference(1) Stocks¥ 4,206¥ 6,101¥ 1,894¥ 1,305¥ 1,622¥ 356(2) Bonds

—

—

—

—

—

—

(3) Other

—

—

—

—

—

—

Subtotal

4,206

6,101

1,894

1,305

1,622

356

(1) Stocks¥ 8,218¥ 6,838¥ (1,379)¥ 14,066¥ 10,112¥ (3,953)(2) Bonds

—

—

—

—

—

—

(3) Other

—

—

—

—

—

—

8,218

6,838

(1,379)14,066

10,112(3,953)¥ 12,425¥ 12,939¥ 514¥ 15,372¥ 11,775¥ (3,596)

Acquisition cost higher than on consolidated balance sheets

Acquisition cost lower than on consolidated balance sheets

Subtotal
Total

Note: In this ﬁscal year, we applied write-downs to shares with a market value included in the Other marketablesecurities item, such that we recorded a ¥1,509 million loss on revaluation of investments in securities.
For the write-downs, we applied write-downs to all shares where the market price had fallen to 50% orless of the acquisition cost at the end of this ﬁscal year and to some shares where the market price had
fallen to 30–50% of the acquisition cost at the end of this ﬁscal year, based on comprehensive estimatesof recoverability for each investment.
3. Main securities without market value(Millions of yen)
Details

Fiscal 2008 (February 29, 2008)

Fiscal 2009 (February 28, 2009)

Consolidated balance sheets value

Consolidated balance sheets value

¥ 396

¥ 489

Other securities(1) Unlisted stocks(2) Trust beneﬁciary certiﬁcates, etc.

2,080

3,526

Total

2,476

4,015

48

48

Stock in subsidiaries and afﬁliated companies(1) Stock in subsidiaries(2) Stock in afﬁliated companies
Total

HISAMITSU PHARMACEUTICAL CO., INC

44

1,488

1,152

¥ 1,536¥ 1,200

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

4. Held-to-maturity bonds to be redeemed after the balance sheet dateFiscal 2009 (March 1, 2008 – February 28, 2009)
Within one year(¥ million)

One to ﬁve years(¥ million)

Five to 10 years(¥ million)

Over 10 years(¥ million)(1) Corporate bonds

299

—

—

—

(2) Other

300

—

—

—

Fiscal 2008 (March 1, 2007 – February 29, 2008)
Within one year(¥ million)

One to ﬁve years(¥ million)

Five to 10 years(¥ million)

Over 10 years(¥ million)

200

—

—

—

—

—

—

(1) Corporate bonds(2) Other

DERIVATIVE TRANSACTIONS
1. Transaction information
1) Transaction details and reason for use
The Group uses interest rate swap transactions to avoid risks of future ﬂuctuations in interest rates. The Group also uses
forward foreign exchange transactions in connection with foreign currency-denominated transactions, to avoid risks of future ﬂuctuations in foreign exchange rates.
2) Transaction policies
Foreign currency-related derivative transactions are undertaken in connection with foreign currency transactions to hedge
against risks of ﬂuctuations in foreign exchange rates. Forward foreign exchange transactions are used only up to the valueof the transactions to which they relate, or less.
Interest rate-related derivative transactions are undertaken in connection with interest on corporate bonds to avoid risks
of interest rate ﬂuctuations. Interest rate swap transactions are used only up to the value of the bond interest payments towhich they relate, or less. Interest rate swap transactions and interest rate swaption transactions are also used to avoid
risks of future rises in interest rates on borrowings, only up to the value of the expected interest payments to which they
relate, or less.
The Group’s policy is not to engage in derivative transactions for speculative purposes.
3) Transaction risks
All forward foreign currency transactions, interest rate swap transactions, and interest rate swaption transactions enteredinto by the corporate group relate to actual demand, and because all counterparties in derivatives transactions are Japanese banks with strong credit standing, we consider the so-called credit risk - i.e. risk that counterparties will default ontransactions – to be minimal.

HISAMITSU PHARMACEUTICAL CO., INC

45

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)4) Transaction risk management
Execution and administration of the corporate group’s derivatives transactions are undertaken by the Finance Department
after authorization by the Board of Directors or the General Manager of the Finance Department, depending on the importance of the transaction, and details are appropriately reported to the Board of Directors.
2. Transaction market value, etc.
Fiscal 2008 (March 1, 2007 – February 29, 2008)
No relevant transactions during ﬁscal 2008.
Fiscal 2009 (March 1, 2008 – February 28, 2009)
No relevant transactions during ﬁscal 2009.
RETIREMENT BENEFITS
Fiscal 2009 (March 1, 2008 – February 28, 2009)
1. Overview of retirement beneﬁt plans
Corporate pension plan:
The company previously used the Hisamitsu Pharmaceutical Welfare Pension Plan to cover a portion of retirement beneﬁts
starting on July 1, 1995, but it switched to the Hisamitsu Pharmaceutical Corporate Pension Plan on July 1, 2005.
The company previously used a qualiﬁed pension plan to augment its retirement beneﬁt plans from March 1, 1966, but
this plan was terminated on April 1, 2007 and integrated into the corporate pension plan
Lump sum retirement allowance:
The company and domestic consolidated subsidiaries provide lump sum retirement allowances based on retirement beneﬁtregulations. In some cases, employees may receive an additional retirement allowance upon retirement.
2. Retirement beneﬁt obligations(Millions of yen)
(1) Retirement beneﬁt obligations¥ (10,583)(2) Pension assets¥ 7,869(3) Subtotal (1) + (2)¥ (2,714)(4) Unrecognized actuarial differences¥ 3,505(5) Total (3) + (4)¥ 791(6) Prepaid pension costs¥ (5,346)(7) Allowance for employee retirement beneﬁts (5) + (6)¥ (4,554)

HISAMITSU PHARMACEUTICAL CO., INC

46

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

3. Retirement beneﬁt costs(Millions of yen)
(1) Service costs¥ 457(2) Interest costs¥ 200(3) Expected return on plan assets¥ (304)(4) Amortization of actuarial differences¥ (222)(5) Amortization of prior service costs¥ (701)(6) Retirement beneﬁt costs¥ (570)Notes: 1. Excludes employee contributions to the corporate pension plan and qualiﬁed pension plan.
2. Retirement beneﬁt costs at consolidated subsidiaries using the simpliﬁed method are recorded under(1) Service costs.
4. Basis for calculating retirement beneﬁt obligations(1) Allocation of expected retirement beneﬁts
Straight-line method(2) Discount rate
2.00%(3) Expected return on plan assets
1) Corporate pension plan
2.90%2) Qualiﬁed pension plan
2.30%
(4) Amortization period of prior service costs
Two years (amortized in equal amounts for a ﬁxed number of years that is less than the average remaining years ofservice of employees when incurred)(5) Amortization period of actuarial differences
Five years (amortized starting in the next consolidated ﬁscal year in equal amounts for a ﬁxed number of years that isless than the average remaining years of service of employees when incurred.)

HISAMITSU PHARMACEUTICAL CO., INC

47

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

TAX EFFECT ACCOUNTING
1. Main reasons for deferred tax assets and deferred tax liabilities.
(Millions of yen)

Deferred tax assets
Allowance for employee retirement beneﬁts¥ 1,822

Allowance for executive retirement beneﬁts¥ 474

Accrued enterprise tax¥ 671

Allowance for doubtful accounts¥ 118

Net unrealized gains on other securities¥ 1,436

Valuation losses on stock and investments in afﬁliated companies¥ 133

Valuation losses on memberships¥ 323

Net unrealized gains on investment securities¥ 1,173

Bonus reserve¥ 338

Outsourced research and development

¥ 942

Other

¥ 1,449

Total deferred tax assets¥ 8,882

Deferred tax liabilities
Prepaid pension costs¥ (2,161)

Total deferred tax liabilities¥ (2,161)

Net deferred tax assets¥ 6,721

2. Main reasons for difference in statutory tax rate and income tax rate after application of tax effect accounting(Millions of yen)
Statutory tax rate

40.4%

(Adjustments)
Entertainment expenses excluded from income

1.5%

Dividend income excluded from income(0.2)%

Per-capita inhabitants tax

0.0%

Special tax exemption for experimental research and development(2.2)%

Other(0.9)%

Income tax rate after application of tax effect accounting

40.4%

HISAMITSU PHARMACEUTICAL CO., INC

48

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

SEGMENT INFORMATIONBusiness segment information
The company and its consolidated subsidiaries, in consideration of the types of products sold and their qualitative similarities,
operate the three business segments of pharmaceuticals and related products, cable television broadcasting, and otherbusinesses. Segment information is omitted because pharmaceuticals and related products account for more than 90% of
the total sales, operating income, and assets of all business segments.
Geographic segment information
Fiscal 2009 (March 1, 2008 – February 28, 2009)
Geographic segment information is omitted because Japan accounts for more than 90% of the total sales and assets of allgeographic segments.

Overseas sales
Fiscal 2009 (March 1, 2008 – February 28, 2009)
Overseas sales information is omitted because they account for less than 10% of consolidated sales.
RELATED PARTY TRANSACTIONSFiscal 2009 (March 1, 2008 – February 28, 2009)
Executives and major individual shareholders

Category

Executive

Name

NAKATOMI
Hirotaka

Address

Relationship
VotingTransaction
Capital orBusiness orrights ratio
Transaction amountinvestment
profession
Concurrent(%)(¥ million)(¥ million)
Business
positions

Item

Year-endbalance(¥ million)—

Concurrently
a foundation
chairman
Other
concurrent
positions:
None
Secondments:
None
Transfers:
None

—

—

—

President & CEO
of Hisamitsu
PharmaceuticalCo., Inc.,
Chairmanof Nakatomi
Memorial
Foundation

Direct: 0.76
Indirect: -—Contributions
to theNakatomi
Memorial
Foundation

621

Transaction terms and policies for deciding transaction terms
Transaction amounts do not include consumption tax.
Contributions to the Nakatomi Memorial Foundation are third-party transactions.

HISAMITSU PHARMACEUTICAL CO., INC

49

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)SIGNIFICANT SUBSEQUENT EVENTS
Merger of consolidated subsidiary
Hisamitsu Pharmaceutical Co., Inc. merged consolidated subsidiary Hisamitsu Medical Co., Ltd. on April 1, 2007.
1. The name of the merged company or business, its business activities, legal format of merger, company nameafter merger, and a merger overview, including merger objective, is presented below.
(1) Name of merged company
Hisamitsu Medical Co., Ltd.
(2) Business activities
Intellectual property management(3) Legal format of merger
Merger between jointly-controlled companies(4) Company name after merger
Hisamitsu Pharmaceutical Co., Inc(5) Merger overview, including objective
The merged company Hisamitsu Medical Co., Ltd. was the successor company when SSP Co., Ltd. spun off andsold its ethical pharmaceuticals business in April 2005. It was involved in managing intellectual property, including
patents, trademarks, and know-how, and it seconded to the company executives and employees related to the ethicalpharmaceuticals business (e.g., sales staff, researchers, and back-ofﬁce personnel in medical information and otherdepartments). However, Hisamitsu Medical merged with the company in an effort to concentrate the group’s businessresources and enhance efﬁciency.
2. Overview of accounting treatment
The merger was treated as a merger between jointly-controlled companies in accordance with the Accounting Standards
for Business Combinations (Corporate Accounting Council, October 31, 2003) and the Application Guidelines for the Accounting Standards for Business Combinations and Accounting Standards for Business Divestitures.
PER SHARE INFORMATION
Fiscal 2008
(March 1, 2007 – February 29, 2008)

Fiscal 2009
(March 1, 2008 – February 28, 2009)

Net assets per share¥1,276.16

Net assets per share¥1,391.49

Earnings per share¥210.45

Earnings per share¥215.61

Diluted earnings per share are not listed due to the absence of residual
securities.

Diluted earnings per share are not listed due to the absence of residual
securities.

Note: Basis of calculation

HISAMITSU PHARMACEUTICAL CO., INC

50

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

1. Net assets per share
Fiscal 2008
(March 1, 2007 – February 29, 2008)

Fiscal 2009
(March 1, 2008 – February 28, 2009)

Total net assets in the consolidated balance sheets (¥ million)

113,929

124,105

Net assets attributable to ordinary shareholders (¥ million)
Main differences (¥ million)
Minority interests
Ordinary shares outstanding

113,179

123,386

750

719

95,164,000

95,164,000

Ordinary shares held in treasury

6,477,000

6,492,000

Ordinary shares used in calculating net assets per share

88,687,000

88,672,000

Fiscal 2008
(March 1, 2007 – February 29, 2008)

Fiscal 2009
(March 1, 2008 – February 28, 2009)

2. Earnings per share

Net income (¥ million)

18,663

19,120

Amount not attributable to ordinary shareholders (¥ million)——

Net income attributable to ordinary shareholders (¥ million)

18,663

19,12088,681,000

88,680,000

Average ordinary shares during year

ADDITIONAL CONSOLIDATED INFORMATION
Bond information
Not applicable.
Borrowing information

Short-term borrowings
Long-term borrowings due
within one year
Lease liability due
within one year
Long-term borrowings(excluding borrowings due
within one year)
Lease liability (exchangeborrowings due within one
year)
Other liabilities
Total

Balance at end of ﬁscal 2008 Balance at end of ﬁscal 2009(¥ million)(¥ million)
762
885

HISAMITSU PHARMACEUTICAL CO., INC

Average interest rate
(%)
0.90

Repayment date
—

275

162

0.58

—

—

—

—

—

842

881

0.81

March 1, 2010 toJanuary 31, 2017

—

—

—

—

—
1,880

—
1,929

—
—

—
—

51

ANNUAL REPORT 2009

Financial Section
Fiscal 2009
(March 1, 2008 – February 28, 2009)

Notes:

1. Average interest rate shows the weighted average interest rate for year-end balances of borrowings,
etc.
2. Long-term borrowings due within one year include ¥132 million in interest free loans from the Development Bank of Japan.
3. Long-term borrowings (excluding borrowings due within one year) include ¥ 592 million in interest freeloans from the Development Bank of Japan.
4. The following long-term borrowings (excluding borrowings due within one year) are scheduled for repayment each year for ﬁve years from the consolidated balance sheet date.

Long-term borrowings

One to two years(¥ million)
166

Two to three years(¥ million)
213

Three to four years(million)
202

Four to ﬁve years(¥ million)
171(2) Other
Not applicable.

HISAMITSU PHARMACEUTICAL CO., INC

52

ANNUAL REPORT 2009

Corporate Data

Group Companies
Our corporate group comprises Hisamitsu Pharmaceutical, 10 consolidated subsidiaries, two non-consolidated subsidiaries, and two equity-method afﬁliates.
Relationship
Location

Capital orinvestment

Main businessactivities

Votingrights(%)

Hisamitsu America, Inc.

Torrance,
California,
USA

USD
100,000

Pharmaceuticals
and related
products

100

1

—

Hisamitsu Farmaceutica
do Brasil Ltda.

Manaus,BrazilBRL
14 million

Pharmaceuticals
and related
products

100

—

3

Hisamitsu Vietnam
Pharmaceutical Co., Ltd.

Bien Hoa,
Vietnam

VND
31,293 million

Pharmaceuticals
and related
products

100

—

4

Saga City-Vision Co.,Ltd.

Saga, Saga

¥603 million

Cable television
broadcasting

69.41

1

2

CRCC Media Co., Ltd.

Kurume,Fukuoka¥830 million

Cable television
broadcasting

63.93

1

3

Taiyo Co., Ltd.

Tosu, Saga

¥10 million

Other businesses

100

1

3

Kyudo Co., Ltd.

Ueki-machi,
Kamoto-gun,
Kumamoto¥10 million

Other businesses

100

1

2

Hisamitsu Agency Co.,
Ltd.

Kurume,Fukuoka¥25 million

Other businesses

60
(60)

1

2

Hisamitsu UK Ltd.

London, UK

GPB
120,000

Pharmaceuticals
and related
products

100

—

2

PT. Hisamitsu PharmaIndonesia

Surabaya,Indonesia

IDR
32,518 million

Pharmaceuticals
and related
products

75

—

3

Name

Concurrent employees
CapitalHisamitsu Hisamitsu support fromofﬁcers employees Hisamitsu(Persons) (Persons)Businesstransactions

Other

Remarks

Consolidated subsidiaries

HISAMITSU PHARMACEUTICAL CO., INC

53

Sell products
supplied by—
Hisamitsu in the US
Manufacture andsell products in
WorkingBrazil, with products—
capital loans
and some raw
materials suppliedby Hisamitsu
Manufacture and sell
products in Vietnam,—with some raw—
materials suppliedby Hisamitsu
Working
Hisamitsu
capital loans
outsources—and debt
advertisingguarantees
Working
Hisamitsu
capital loans—
outsourcesand debt
advertisingguarantees
Agent for casualty
Hisamitsu—
insurance contracts
leases landfor Hisamitsu
Provide advertising Hisamitsu—
agency services to leases land
Hisamitsu& buildings
Hisamitsu
Provide advertisingleases part—agency services toof a lease
Hisamitsu
building
Hisamitsu—
outsources—
development
Manufacture andsell products inIndonesia, with
Working
products and some—
capital loans
raw materials
supplied by
Hisamitsu—

Note 3

ANNUAL REPORT 2009

Corporate Data

Equity-method afﬁliates
Maruto Co., Ltd.

Ogori,
Fukuoka¥1,807 million Other businesses

39.75

1

2

Working
capital loans—

Note 4

Notes: 1. Main business activities column lists names of business segments.
2. There are no companies in accounting insolvency that would signiﬁcantly affect the consolidated ﬁnancial statements.
3.Speciﬁed subsidiary.
4.Listed on the Fukuoka Stock Exchange and ﬁles ﬁnancial statements.
5. Figures in parenthesis in the voting rights column indicate indirect ownership.
6. Key earnings information for the foregoing consolidated subsidiaries is not listed because sales atthese companies account for less than 10% of consolidated sales (excluding internal sales between
consolidated subsidiaries).

HISAMITSU PHARMACEUTICAL CO., INC

54

ANNUAL REPORT 2009

Corporate Data

Company Profile
Company name

Hisamitsu Pharmaceutical Co., Inc.

Founded1847

Established
Head ofﬁce
Representative
CapitalFiscal year

May 22, 1944
408 Tashiro Daikan-machi, Tosu, Saga
NAKATOMI Hirotaka, President & CEO¥8,473,839,816
March 1 – End of February

Stock Information
Authorized shares
Shares outstanding
Shareholders
Stock exchange listings

380,000,000
95,164,895
7,468First sections of the Tokyo Stock Exchange, Osaka Securities Exchange, andNagoya Stock Exchange, and the Fukuoka Stock Exchange (stock code: 4530)
Stock registrar
Mitsubishi UFJ Trust and Banking Corporation
1-4-5 Marunouchi, Chiyoda-ku, Tokyo
Annual general meeting of shareholders
May each year
Ex dividend date
End of February (August 31 for interim dividend)
Record date
Record date for the annual general meeting of shareholders is the end of February.
Report in advance if otherwise needed.
Newspaper for public announcements
Nihon Keizai Shimbun
Stock related inquiries
Stock Section, General Affairs Department, Kyushu Head Ofﬁce
408 Tashiro Daikan-machi, Tosu-shi Saga
Tel: +81 942-83-2101 Fax: +81 942-83-6119
Website: http://www.hisamitsu.co.jp

Number of Employees
Business segment

Employees

As of February 28, 2009

Pharmaceuticals and related products
1,756 (240)Cable television broadcasting43 (10)
Other businesses
91 (38)
Total
1,890 (288)Note:
Employee ﬁgures are for full-time employees. Temporary employees are shown in parentheses;
these ﬁgures are averages for the ﬁscal year and are not included in totals.

HISAMITSU PHARMACEUTICAL CO., INC

55

ANNUAL REPORT 2009

Hisamitsu Pharmaceutical Co., Inc.
408 Tashiro Daikan-machi, Tosu, Saga
Tel: +81 942-83-2101
Fax:+81 942-83-6119
Website: http://www.hisamitsu.co.jp