Non-consolidated Financial Results for the Fiscal Year Ended September 30, 2010
November 9, 2010

Company name: Fuji Pharma Co., Ltd.
Stock Exchange Listing: Osaka Securities Exchange (JQ)
Stock code:4554 (URL: http://www.fujipharma.jp)
Representative: Hirofumi Imai, President & CEO
Contact:
Toyoyuki Kamide, Director and General Manager of Administration Department
TEL: +81-(0)3-3556-3344
Scheduled date of annual shareholders’ meeting:
December 20, 2010
Scheduled start date of dividend:
December 21, 2010
Scheduled submission date of annual securities report:
December 21, 2010
(All amounts are rounded down to the nearest million yen)

1. Financial Results for the Fiscal Year Ended September 30, 2010 (October 1, 2009 to September 30, 2010)(1) Operating results(Percentages shown for net sales, operating income, ordinary income and net income represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Millions of yen

Fiscal year ended Sep. 30, 2010
Fiscal year ended Sep. 30, 2009%

19,69817,198Millions of yen

14.5
15.1

%

3,232
2,462

Millions of yen%

Millions of yen

%

3,243
2,477

30.9
18.7

1,944
1,525

27.4
21.9

31.3
19.2

Net income per
share

Diluted net
income per share

Return on equity

Return on assets

Profit margin on
sales

Yen

Yen

%

%

%

Fiscal year ended Sep. 30, 2010
151.05
11.4
Fiscal year ended Sep. 30, 2009118.57
9.8
Reference: Earnings on investments in equity-method affiliates (millions of yen) Sep. 30, 2010: -

13.6
11.5
Sep. 30, 2009: -

16.4
14.3

(2) Financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Fiscal year ended Sep. 30, 2010
Fiscal year ended Sep. 30, 2009
Reference: Shareholders’ equity (millions of yen)

24,723
22,862
Sep. 30, 2010:

17,833
16,221
17,83372.1
71.0
Sep. 30, 2009:

1,385.65
1,260.42
16,221(3) Cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the fiscal year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal year ended Sep. 30, 2010
Fiscal year ended Sep. 30, 2009

2,168
1,816

(1,404)(1,859)

(334)
(270)

3,097
2,668

Total

Total cash
dividends

Dividend Dividends on
payout ratio
equityYen

YenMillions of yen

2. Dividends
1Q-endYen

Fiscal year ended Sep. 30, 2009
Fiscal year ended Sep. 30, 2010
Fiscal year ending Sep. 30, 2011
(Estimated)

Dividend per share
2Q-end 3Q-end Yearend
Yen

Yen

-

11.0
13.0

-

13.00
17.00

24.00
30.00

-

17.0

-

17.00

34.00

%

308
386

%

20.2
19.9

2.0
2.3

20.4

3. Forecast for the Fiscal Year Ending September 30, 2011 (October 1, 2010 to September 30, 2011)
Net sales
Millions of yen

First half
Full year

10,77522,457

Operating income
%

12.6
14.0

Millions of yen

1,372
3,476

%

Ordinary income
Millions of yen(14.8)
7.5

1,371
3,471

1

%

(15.1)
7.0(Percentages represent year-on-year changes)
Net income
Net income per share
Millions of yen

845
2,141

%

(13.0)
10.1

Yen

65.66
166.36

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

4. Others(1) Changes in significant accounting policies
1) Changes resulting from revision of accounting standards: None
2) Changes other than 1) above: None

(2) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding as of the end of period (including treasury stock)

Sep. 30, 2010:

12,870,000 sharesSep. 30, 2009:

12,870,000 sharesSep. 30, 2009:10 shares

2) Number of shares of treasury stock as of the end of period

Sep. 30, 2010:10 shares

Note: For the number of shares used for the calculation of net income per share, please see “Per Share Data” on page 33.
* Cautionary statement with respect to forward-looking statements
Notations regarding the future, including performance outlook contained in these materials are based on information currently
available at the Company and certain assumptions that are deemed to be reasonable and it is possible that the actual performance andthe like may vary significantly due to variety of factors. For the assumptions upon which earnings forecasts are based andprecautionary statements regarding their use, please refer to the section “1. Review of Operations, (1) Analysis of Operating Results”
on page 3 for details on the above forecasts.

2

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

1. Review of Operations(1) Analysis of Operating Results1) Summary
In the current fiscal year, the Japanese economy recovered slowly due to the government’s economic stimulus measures,progress in inventory reductions, and a recovery in demand in China and other emerging countries. However, theuncertainty of the outlook for the Japanese economy has reached an unprecedented level because of the European debt
crisis that began in Greece and the yen’s rapid appreciation linked to fears about slowing economic growth in the
United States.
In Japan’s ethical drug industry, in response to increasing financial problems involving the health insurance system,
there were revisions to the National Health Insurance (NHI) system in April 2010 that altered the level of payments for
medical services and lowered the prices of drugs by 5.75%. In addition, there was an additional cut in drugs where
patents have expired and generic versions are available. To increase the use of generic drugs, dispensing pharmacies
started receiving additional payments from the government in April 2010 that depend on the percentage of generic drug
sales. These events demonstrate that the Japanese government is working even harder on promoting the use of genericdrugs. On the other hand, competition is becoming even more intense as Japanese pioneer drug manufacturers, major
overseas generic drug manufacturers and other companies enter the generic drug market.
In these circumstances, the Company signed a contract in February 2010 with Mochida Pharmaceutical Co., Ltd. for the
co-development of a recombinant granulocyte colony-stimulating factor (G-CSF) formulation. Phase II and III clinical
trials are currently under way. In addition, the Company started construction in March 2010 of a factory at its Toyama
Plant that is intended to serve as a GMP (Good Manufacturing Practices) model for Japan as well as for the UnitedStates and EU and to handle high potency substances. The new plant is expected to start operating in the fall of 2011.
In terms of sales activities, the Company has been focusing on the marketing of the new drug “LUNABELL tablets”(indicated for dysmenorrhea associated with endometriosis) as well as expanding its market share in infertility treatment
drugs and other major products in its core field of obstetrics and gynecology. Furthermore, we have been conducting
extensive marketing activities aimed at capturing new business and expanding business with nationwide hospitals thatare subject to DPC (Diagnosis Procedure Combination).
As a result, net sales increased 14.5% to a record-setting 19,698 million yen. Earnings also rose to all-time highs as in
the previous fiscal year. Operating income was up 31.3% to 3,232 million yen, ordinary income climbed 30.9% to 3,243
million yen and net income increased 27.4% to 1,944 million yen.
Diagnostic drugs centering on the urinary tract angiographic agents “OYPALOMIN,” “IOPAQUE,” which are theprincipal products of the Company, accounted for 8,494 million yen in net sales (a 21.6% increase over the previous
fiscal year). Hormonal agents composed principally of infertility treatment drugs such as the hypophysical gonadal
stimulus hormone agent “Human Menopausal Gonadotropin,” “Folyrmon-P Injection,” the endometriosis treatment
drug “Buserecur” and the new drug “LUNABELL tablets” accounted for sales of 5,403 million yen (a 12.2% increase).
There were similarly strong results in other drug efficacy areas, resulting in an overall increase in net sales of 14.5%
over the previous fiscal year.

3Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

2) Outlook for the Next Fiscal YearIn the next fiscal year ending on September 30, 2011, Japan’s generic drug market is expected to continue growing
mainly because of an increase in generic drug use at hospitals subject to DPC. During the fiscal year, which is thesecond year of the Company’s medium-term business plan, R&D expenditures are expected to increase for thedevelopment of the G-CSF formulation and other activities. In this fiscal year, one goal is to use synergies from genericdrugs and the new drug “LUNABELL tablets” to achieve market expansion in the field of medical care for women.
Another goal is to achieve further growth in sales of generic injection agents, chiefly urinary tract angiographic agents,
in the field of acute medical treatment. Under the business plan, the Company will also launch strategic products, builda factory for injection agents and take other actions.
As a result, the Company expects net sales of 22,457 million yen (a 14.0% increase over the previous fiscal year),
operating income of 3,476 million yen (a 7.5% increase), ordinary income of 3,471 million yen (a 7.0% increase) with
net income of 2,141 million yen (a 10.1% increase).

(2) Analysis of Financial Position
1) Assets, Liabilities and Net Assets
Total assets were 24,723 million yen as of the end of the fiscal year under review, an increase of 1,860 million yen overthe end of the previous fiscal year.
Current assets totaled 16,588 million yen, an increase of 1,489 million yen, as inventories increased by 946 million yen
and cash and deposits by 431 million yen.
Noncurrent assets totaled 8,135 million yen, an increase of 371 million yen. In property, plant and equipment,
construction in progress increased 1,083 million yen because of construction of a new factory at the Toyama Plant.
Liabilities increased by 249 million yen to 6,890 million yen. Current liabilities increased by 205 million yen consistingof an increase in provision for bonuses of 156 million yen, an increase in accounts payable-other of 117 million yen andan increase in income taxes payable of 108 million yen, which was offset partially by a reduction in notes and accounts
payable-trade of 213 million yen.
Noncurrent liabilities increased by 43 million yen, mainly due to an increase in provision for retirement benefits of 37
million yen.
Net assets increased by 1,611 million yen over the total net assets as of the end of the previous fiscal year to 17,833
million yen. The principal contributing factor was an increase of 1,609 million yen in retained earnings under theshareholders’ equity resulting from the recording of net income.

2) Cash Flows
Cash and cash equivalents (hereinafter, “Cash”) as of the end of the fiscal year under review increased by 429 million
yen from the end of the previous fiscal year to 3,097 million yen.
The cash flow components during the current fiscal year and the main reasons for changes are as described below.
Cash Flow from Operating Activities
Net cash provided by operating activities totaled 2,168 million yen (a 351 million yen increase over the same periodprevious fiscal year). This was the net result of 1,026 million yen in depreciation and amortization in addition to income
before income taxes of 3,156 million yen, which was offset by a 946 million yen increase in inventories, a 213 million
yen decrease in notes and accounts payable-trade, a 158 million yen increase in notes and accounts receivable-trade, andother factors.

4

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Cash Flow from Investing Activities
Net cash used in investing activities was 1,404 million yen, compared with 1,859 million yen in the same periodprevious fiscal year. Although there were proceeds from withdrawal of time deposits of 300 million yen, there werepurchases of property, plant and equipment of 1,482 million yen, intangible assets of 218 million yen and other factors.
Cash Flow from Financing Activities
Net cash used in financing activities was 334 million yen, compared with 270 million yen in the same period previous
fiscal year, due to cash dividends paid.
Trends of the Company’s cash flow indicators are as follows:
FY9/06

FY9/07

FY9/08FY9/09FY9/10Equity ratio (%)

76.6

72.9

73.6

71.0

72.1

Market value basis equity ratio (%)

103.5

146.7

101.2

103.9

83.2

Interest-bearing debt to cash flow ratio (%)

27.2

12.8

22.3

10.9

9.1

Interest coverage ratio (Times)

332.5

706.2

339.9

2,929.5

11,145.4- Equity ratio: Shareholders’ equity / Total assets- Market value basis equity ratio: Market capitalization / Total assets- Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flow
- Interest coverage ratio: Operating cash flow / Interest expenses* “Guarantee deposits received” in the Liabilities section of the Balance Sheets is used as interest-bearing debt.
* “Net cash provided by (used in) operating activities” in the Statements of Cash Flows and “Interest expenses” in the Statements ofIncome are used as Operating cash flow and Interest expenses, respectively.

(3) Profit Allocation Policy and Dividend Payment Plan for the Current and Next Fiscal Years
One of our highest priorities is to pay a consistent dividend to shareholders and increase the dividend.
Our policy concerning the allocation of earnings is to increase retained earnings to fund future business operations
while paying a stable and consistent dividend that reflects earnings in each fiscal year, the dividend payout ratio and allother applicable items.
We plan to reinvest retained earnings to strength research and development, improve production capacity and efficiency,
and increase our sales force in order to strengthen our base of operations and increase corporate value.
There are no plans to change the frequency of dividend payments.
For dividends applicable to the fiscal year that ended on September 30, 2010, the year-end dividend is to be 17 yen per
share. This is one yen higher than the July 30, 2010 dividend forecast because earnings exceeded the target in the fiscal
year business plan. With the interim dividend of 13 yen per share, this will result in an annual dividend of 30.00 yen per
share and a dividend payout ratio of 19.9%. For the fiscal year ending on September 30, 2011, we plan to pay an annual
dividend of 34 yen per share, the sum of interim and year-end dividends of 17 yen each.
(4) Operational Risk
Risks related to information that may have a material impact on investors’ decisions that is contained in the financial
statements for the fiscal year under review are as follows. Forward-looking statements in these materials are based on
the judgment of management as of September 30, 2010.
1) Statutory Regulations
Our company manufactures and distributes pharmaceutical products under the Pharmaceutical Affairs Law and related
regulations. Revisions in laws/regulations related to the pharmaceutical industry, which may be made in future, may
influence our financial condition and business performance.

5

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

2) Research and Development for Pharmaceutical Products
There is a possibility of delays in our research and development projects and extensions, suspensions or eventerminations of new product development projects. These events may have an impact on our business performance.
3) Competition
Our policy is to sell our products at reasonable prices that take into account the profitability of products. However, someof our products have been under considerable market price pressure due to fierce competition from many competitors.
Moreover, some Japanese pioneer drug manufacturers may take aggressive actions to preserve their market shares.
These events may prevent us from achieving our forecasts.
4) Procurement of raw materials
We purchase raw materials from suppliers in Japan and other countries. A significant increase in the cost of raw
materials may result in an increase in the cost of finished goods. In addition, an extended period of difficulty inobtaining raw materials due to restrictions in Japan or other countries on raw materials or to quality or other problems at
suppliers may prevent us from manufacturing and selling products. Either of these events may have an impact on ourbusiness performance.
5) Side effects and product quality
For products that have been approved for sale, we may be required to recall certain products or cease the manufactureand sale of certain products due to unforeseen side effects of these products, impurities or other problems with theseproducts, government restrictions or other issues. Any of these events may have an impact on our business performance.
6) Delays or suspensions in the supply of products
The operations of Fuji Pharma may be suspended or severely disrupted or confused if technological or regulatory
problems or a disaster such as a fire or earthquake affect manufacturing facilities that make products or warehouses or
its other facilities. The resulting suspension in the supply of the affected products may have an impact on our businessperformance.
7) Revisions in drug price standards
As stipulated in the Health Insurance Law, the National Health Insurance list prices of ethical drugs are based on drug
expense calculations that use drug price standards determined by the Minister of Health, Labour and Welfare. The
Ministry of Health, Labour and Welfare has been revising these list prices every two years in principle based on drug
price surveys. The goal of these revisions is to narrow the gap between the standard prices for drugs, which are thereimbursement prices used for health insurance, and the actual market prices of drugs. These revisions have an effect on
the selling prices of Fuji Pharma products as well. In April 2010, there was an average drug price reduction of 5.75% in
the pharmaceutical industry but these price reductions caused the prices of Fuji Pharma products to fall by 7.7%.
8) Litigation
We may become the target of lawsuits by manufacturers of new drugs that seek damages for alleged infringements on
manufacturing and other patents. In addition, we may become the target of lawsuits involving product liability,
environmental issues, labor-related issues and other matters. Depending on the outcome of this litigation, there may be
an impact on our business performance.

6

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

2. Group Organization
The Company has no subsidiaries or affiliates. Therefore, this item is not applicable.

3. Management Policies(1) Fundamental Management Policy
Fuji Pharma bases its operations on the management philosophies of “contributing to healthy living by supplying
outstanding pharmaceuticals” and “the growth of the Company is directly linked to the development of its employees.”
By continuing to adhere to these philosophies, the Company is dedicated achieving more progress and growth. We willaccomplish this by developing, manufacturing and selling outstanding pharmaceuticals in order to fulfill our obligations
to all stakeholders, including customers, suppliers, shareholders, employees, communities and society.
(2) Performance Indicators and Targets
Maximum efforts will be made to generate sufficient earnings for distributions to shareholders as well as to upgrade andexpand production facilities and increase research and development expenditures for future growth. We haveestablished specific targets in the medium-term business plan that will end on the fiscal year ending on September 30,
2014. Our goals are to increase net sales to 35 billion yen, ordinary income to 7.0 billion yen, net income to 4.3 billion
yen, and the return on assets to at least 15%. Furthermore, for the purpose of increasing shareholder value, we areaiming to increase net income per share and to increase the dividend per share with the goal of reaching a dividend
payout ratio of 30% in the final year of the medium-term business plan.
(3) Medium- and Long-term Management Strategy
The medium-term business plan is designed to achieve further growth based on the theme of “Good to Great.”
The plan has three central goals. First is to extend operations to cover more targeted diseases, mainly by using new
injection agents. Second is to become the leading company in the field of medical care for women. And third is to build
a new operating framework for success in the next half century. Overall, the objective is to achieve rapid growth inmarket sectors where we are strongest in order to be a company that can sustain growth forever.
Our strategies to accomplish this objective are to establish a base of operations centered on R&D and to enlarge ourstrategic pipeline over the medium and long terms. Furthermore, we plan to enhance our presence in the strategic
disease domains of acute medical care and medical care for women. With regard to manufacturing, our goal is tocomplete work on a network of factories that make highly activated drugs and can serve as a GMP (GoodManufacturing Practice) model for Japan as well as for the United States and EU. Executing these strategies will require
reinforcing our human resources pipeline, such as by upgrading training and recruiting activities. The aim is to create
new systems for reaching decisions and translating those decisions into actions.
(4) Key Issues
Japan’s market for generic drugs has been expanding steadily in recent years. The government has enacted numerous
measures aimed at increasing the use of these drugs as a key method of holding down health care expenses. For
example, the Ministry of Health, Labour and Welfare has established the goal of increasing the market share of genericdrugs to at least 30% by fiscal 2012.
Following the expansion of the Japan’s generic drug market, there have been even greater demands for quality
assurance, the stable supply of these drugs, and information associated with these matters. In response, suppliers havebeen required to reinforce activities that can make generic drugs more reliable.
Competition is becoming more intense as both Japanese pioneer drug manufacturers and foreign affiliatedpharmaceutical companies enter the generic drug market. To succeed, we must act quickly to use distinctive strengths tobuild a base of operations that is not vulnerable to changes in the operating environment.

7

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

In this challenging operating environment, Fuji Pharma is concentrating on the following goals in order to accomplish
the goals of the medium-term business plan quickly.
1) Expand the pipeline by using strategic alliances with pharmaceutical manufacturers in Japan and other countries.
2) Quickly introduce strategic products in the acute medical care field.
3) Increase support for hormone treatments in the field of obstetrics and gynecology.
4) Upgrade and expand our production systems to supply products with even better quality and provide a stable supplyof products to meet rising demand.
5) Quickly start operations at highly activated drug factories and achieve stable operations.
6) Strengthen administrative and management systems (more powerful internal controls, rigorous compliance programs,
establishment of risk management system and maintenance of IT system).
7) Provide training to give employees skills for management and starting new businesses.

8Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

4. Non-consolidated Financial Statements(1) Balance Sheets(Thousands of yen)
FY9/10(As of Sep. 30, 2010)

FY9/09(As of Sep. 30, 2009)
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Accounts receivables-otherAccrued income
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Right of trademark
Distributorship
SoftwareTelephone subscription right
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Claims provable in bankruptcy, claims provable inrehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Guaranteed deposits
Insurance funds
Long-term time deposits
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

92,161,361
746,636
6,782,207
706,832
1,415,259
844,773
1,668,493
64,017
213,469
415,515
70,771286
11,658(2,258)15,099,024

2,592,763
654,428
7,032,513
504,910
1,728,477
810,705
2,336,230
64,413
194,640
503,396
146,73932
22,098(2,557)
16,588,793

4,690,289(1,995,026)
2,695,263
108,685(77,425)
31,2603,270,537(2,332,648)
937,888
35,384(26,434)
8,950
757,648(610,509)
147,139
634,361475,562
4,930,427

4,748,819(2,083,293)
2,665,525
118,880(72,571)
46,3083,449,533(2,584,505)
865,027
35,814(31,706)
4,107
749,731(623,233)
126,498
634,361
1,559,484
5,901,313

137
1,231,543
84,203
7,976
1,323,861

87
1,048,043
85,351
7,976
1,141,459

138,171100

130,627100-

19,599438,415
224,834
593,580
14,554
100,000
1,509,656
7,763,945
22,862,969

313,612245,148374,712
16,267(7,673)
1,092,394
8,135,166
24,723,959

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10(Thousands of yen)
FY9/10(As of Sep. 30, 2010)

FY9/09(As of Sep. 30, 2009)
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade488,608

553,361

3,056,271

2,777,572

Accounts payable-other675,386

793,184

Accrued expenses

121,034

139,925

Income taxes payable

695,739804,082

Accrued consumption taxes

94,146

122,694

Deposits received

19,184

17,159Provision for bonuses

651,870

808,722

Provision for directors’ bonuses

14,10029,900

Provision for sales returns

14,374

10,899Notes payable-facilities

21,633567

Total current liabilities

5,852,351

6,058,069

Noncurrent liabilities
Guarantee deposits received

197,836

196,831

Provision for retirement benefits

517,749555,375

Long-term accounts payable-other73,43680,359Total noncurrent liabilities
Total liabilities

789,022832,567

6,641,373

6,890,636

1,616,950

1,616,950

2,226,020

2,226,020

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus

615,567

615,567

Total capital surplus

2,841,587

2,841,587

164,079

164,079

General reserve

5,000,000

5,000,000

Retained earnings brought forward

6,604,302

8,213,754

11,768,381

13,377,833

(7)

(7)

16,226,911

17,836,363

Valuation difference on available-for-sale securities(5,315)(3,039)Total valuation and translation adjustments(5,315)(3,039)Retained earnings
Legal retained earnings
Other retained earnings

Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets

10

16,221,596

17,833,323

22,862,969

24,723,959

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10(2) Statements of Income
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

Net sales of finished goods

14,769,522

17,114,273

Net sales of goods

2,429,253

2,584,208

Total net sales

17,198,775

19,698,482

1,310,914

1,415,259

Net sales

Cost of sales
Beginning merchandise and finished goods
Cost of purchased goods

1,154,771

Transfer from other account*1

Cost of products manufactured

1,584,184

13,689*1

8,430,500

Total

9,351,876

10,909,875

Ending merchandise and finished goods*2

Transfer to other account

1,415,259*3

Total cost of sales
Gross profit
Reversal of provision for sales returns

8,517

12,359,838*2

93,755

1,728,477
*3

8,794

9,400,860

10,622,566

7,797,915

9,075,915

-

3,475

2,461

-

7,795,453

9,079,390

Promotion expenses

132,217

115,489

Sales commission

489,432

607,951

Packing and transportation expenses

199,230

211,514

Provision for sales returns
Gross profit-net
Selling, general and administrative expenses

Entertainment expenses

53,68145,398

Directors’ compensations

55,617

61,230

Salaries and bonuses

1,326,626

1,349,192

Provision for bonuses

411,569

502,780

Provision for directors’ bonuses

14,10029,900

Provision for retirement benefits

45,95942,472

Provision of allowance for doubtful accounts

-

7,973

Welfare expenses

249,475

280,970

Traveling and transportation expenses

239,870

244,659

Rent expenses

210,153

206,986

Depreciation

327,650

321,162

Research and development expenses

*4

Other

918,821658,885

Total selling, general and administrative expenses
Operating income

11*4

1,114,446
704,4175,333,291

5,846,546

2,462,162

3,232,844

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

Interest income

2,030

654

Interest on securities

2,876

1,753

Dividends income

410

410

Non-operating income

Dividends income of life insurance

-

2,092

Commission fee

-

2,570

Compensation income

-

2,885

Fiduciary obligation fee

4,418

-

Miscellaneous income

10,0604,940

Total non-operating income

19,79615,308Non-operating expenses
Interest expenses

620

194

Sales discounts

2,756

3,690

Miscellaneous loss

956

829

4,333

4,714

2,477,624

3,243,439*5

22,386-*6

32,721-

55,10740,322

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on prior period adjustment
Contribution from co-development project-

Gain on sales of noncurrent assets
Total extraordinary income*840,322Extraordinary loss
Loss on retirement of noncurrent assets*7

Loss on valuation of inventories
Loss on valuation of investment securities
Impairment loss

1,910

Other

66,161

54,337--

11,380-

Settlement package*7*950,000

6,500

-

606

-

Total extraordinary losses

63,354

127,542

Income before income taxes

2,469,378

3,156,219

Income taxes-current

1,066,124

1,321,903

Income taxes-deferred(122,704)(109,756)

Total income taxes

943,420

1,212,147

1,525,958

1,944,071

Net income

12Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Manufacturing Statement(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
Note

Amount%Amount%I

Cost of materials*1,*4

6,098,288

71.4

6,630,497

71.1

II

Labor cost

*2

841,5369.9

949,876

10.2

IIIOverheads

1,745,952

18.7

9,326,325

100.0

Depreciation and amortization

566,795

627,623

Supplies expenses

168,347

230,685

Other

860,506

1,595,649

18.7

Total manufacturing costs

8,535,475

100.0

Beginning work in process

760,037

844,773

9,295,512

10,171,099

844,773

810,705

Total
Ending work in process*1

Transfer to other account*3

Cost of products manufactured

887,642

20,2388,517

8,430,500

9,351,876(Thousands of yen)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
The Company applied the simple process costing method on thebasis of historical for cost accounting.

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)Same as on the left.

*1. Ending inventories are shown after written down on the bookvalues to reflect declines in profitability, and following loss on
valuation of inventories are included in the cost of products
manufactured.
17,140*1. Ending inventories are shown after written down on the bookvalues to reflect declines in profitability, and following loss on
valuation of inventories (valued by the reversal method) are
included in the cost of products manufactured.
(17,140)*2. The amount of provisions for allowances included in the labor
cost is as follows:
Provision for bonuses
174,328
Provision for retirement benefits
14,933*2. The amount of provisions for allowances included in the labor
cost is as follows:
Provision for bonuses
214,489
Provision for retirement benefits
13,916*3. Breakdown of transfer to other account is as follows:
Cost of sales
13,207
Loss on valuation of inventories
7,031
Total
20,238*3. Breakdown of transfer to other account is as follows:
Cost of sales
8,517

*4.

*4. As noted in the section on Reclassifications, somedermatological preparations, presented as “Merchandise” in theprevious fiscal year, is reclassified and presented as “Finishedgoods.” Accordingly, “Cost of materials” increased by 38,473
thousand yen, compared with under the previous classification.

13

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10(3) Statements of Changes in Net Assets
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

1,616,950

1,616,950--

1,616,950

1,616,950

2,226,020

2,226,020--

2,226,020

2,226,020

615,567

615,567

Shareholders’ equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Legal capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Other capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period--

615,567

615,567

2,841,587

2,841,587

Total capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period--

2,841,587

2,841,587

164,079

164,079

164,079

164,079

5,000,000

5,000,000

Retained earnings
Legal retained earnings
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Other retained earnings
General reserve
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period--

5,000,000

5,000,000

5,348,613

6,604,302

Dividends from surplus(270,269)(334,619)

Net income

1,525,958

1,944,071

Total changes of items during the period

1,255,688

1,609,451

6,604,302

8,213,754

10,512,692

11,768,381

Dividends from surplus(270,269)(334,619)

Net income

1,525,958

1,944,071

Total changes of items during the period

1,255,688

1,609,451

11,768,381

13,377,833

Balance at the end of current period
Retained earnings brought forward
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total retained earnings
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period

14

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

(7)

(7)

-

-

(7)

(7)

14,971,222

16,226,911

Treasury stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus(270,269)(334,619)

Net income

1,525,958

1,944,071

Total changes of items during the period

1,255,688

1,609,451

16,226,911

17,836,363

567(5,315)

Net changes of items other than shareholders’ equity(5,882)

2,275

Total changes of items during the period(5,882)

2,275(5,315)(3,039)567(5,315)(5,882)

2,275

Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period(5,882)

2,275(5,315)(3,039)14,971,789

16,221,596

Dividends from surplus(270,269)(334,619)

Net income

1,525,958

1,944,071(5,882)

2,275

Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period

Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

151,249,806

1,611,727

16,221,596

17,833,323

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10(4) Statements of Cash Flows
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

2,469,378
952,274
55,947371
80,734(1,500)2,461(5,317)(32,721)
1,910(1,237,587)(648,216)
21,799
9,121(11,113)864,060
66,027
3,647(65,150)
66,9083,156,219
1,026,908
50,00037,625
7,973
156,851
15,800(3,475)(2,819)66,161
11,380(158,098)(946,887)(75,967)
18,829124,802(213,945)
87,523
6,923
18,89028,548-(19,599)(14,613)(21,158)(1,004)(15,210)

Subtotal

2,557,264

3,377,430

Interest and dividends income received
Interest expenses paid
Income taxes paid
Other, net

8,522(3,709)(739,332)(6,000)3,072(3,581)(1,208,683)-

Net cash provided by (used in) operating activities

1,816,744

2,168,237(100,000)(1,288,015)
38,683(458,383)(50,112)(1,362)300,000(1,482,595)(21,380)(218,730)
20,000(1,712)(1,859,190)(1,404,419)(270,512)(334,338)(334,338)

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in provision for retirement benefits
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in provision for sales returns
Interest and dividends income
Loss (gain) on sales of noncurrent assets
Loss on retirement of noncurrent assets
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in accounts receivable-other
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in long-term accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Increase (decrease) in guarantee deposits received
Other, net

Net cash provided by (used in) investing activities
Proceeds from withdrawal of time deposits
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Proceeds from collection of guarantee deposits
Payments for guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Cash dividends paid
Net cash provided by (used in) financing activities(270,512)

Net increase (decrease) in cash and cash equivalents(312,957)

429,479

Cash and cash equivalents at beginning of period

2,981,152

2,668,194

Cash and cash equivalents at end of period*

16

2,668,194*

3,097,674

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Notes Regarding Assumptions for Company as Ongoing Concern
Not applicable.

Significant Accounting Policies
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
1. Valuation standard Available-for-sale securities
and methods for Securities with market quotations:
Valued at the market price, using a market value at themarketableend of the fiscal year, differences in valuation to be
securities
included in net assets, and cost of securities sold being
determined by the moving average method.
Securities without market quotations:Moving average cost method.
Item

2. Valuation criteria
and methods forinventories

Primarily by the first-in, first-out cost method.
(The carrying value on the Balance Sheets is written
down to reflect declines in profitability).

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)
Available-for-sale securities
Securities with market quotations:
Same as on the left.

Securities without market quotations:
Same as on the left.
Same as on the left.

(Changes in accounting policies)
The Company has adopted “Accounting Standards for
Measurement of Inventories” (Accounting Standards
Board of Japan (ASBJ) Statement No. 9, July 5, 2006)
from the current fiscal year.
This caused declines in operating income and ordinary
income by 112,019 thousand yen each, and income
before income taxes by 86,093 thousand yen.
3. Depreciation andamortization of
noncurrent assets(1) Property, plant and equipment (excluding leaseassets)Declining-balance method. (However, depreciation on
the buildings which we bought after April 1, 1998
(excluding the facilities attached to the buildings) is
calculated by the straight-line method).
The useful lives of property, plant and equipment aresummarized as follows:
Buildings
7 to 50 years
Machinery and equipment
8 years(1) Property, plant and equipment (excluding leaseassets)Same as on the left.

(Additional information)
In accordance with the 2008 revisions of the
Corporation Tax Law, the useful life of the Company’s
machinery and equipment has been changed in thecurrent fiscal year from previously-applied 7 years to 8
years.
As a result, operating income, ordinary income andincome before income taxes have been increased by
30,285 thousand yen each.
(2) Intangible assets (excluding lease assets)
Straight-line method.
Amortization of software used within the Company iscalculated by the straight-line method over a period of
5 years.
For distributorship, 5-year straight-line amortization
method has been applied.

17(2) Intangible assets (excluding lease assets)
Same as on the left.

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Item

FY9/09FY9/10(Oct. 1, 2008 – Sep. 30, 2009)(Oct. 1, 2009 – Sep. 30, 2010)(3) Lease assets(3) Lease assets
Lease assets associated with finance lease transactions Lease assets associated with finance lease transactions
where there is no transfer of ownershipwhere there is no transfer of ownershipSame as on the left.
The straight-line method with no residual value isapplied with the lease period used as the useful life of
the assets.
For finance lease transactions where there is notransfer of ownership beginning prior year to thefiscal year when these standards are first applied,depreciation is calculated using an accounting methodthat is based on the method used for ordinary leasetransactions.
(4) Long-term prepaid expenses
Straight-line method.

(4) Long-term prepaid expenses
Same as on the left.

4. Allowance for(1) Allowance for doubtful accounts
doubtful accounts To prepare for credit losses on receivables, thenecessary amount in view of the ratio of bad debts inthe past and other relevant matters is accounted for by
ordinary receivables while the estimated amount of
unrecoverable receivables based on the assessment
results for recoverability in each case is accounted forby the receivables of which the recovery is doubtful
and receivables subject to the rehabilitation process
following bankruptcy.

(1) Allowance for doubtful accounts
Same as on the left.

(2) Provision for bonuses
To provide for accrued bonuses for employees, anallowance is provided at the amount based on theestimated bonus obligations.

(2) Provision for bonuses
Same as on the left.

(3) Provision for retirement benefits
To provide for employees’ retirement benefits, anallowance is provided based on projected benefit
obligations at the end of the current fiscal year.

(3) Provision for retirement benefits
Same as on the left.

(4) Provision for sales returns
Allowance for sales returns provides for expected lossof gross profits due to returns of products calculated
based on past rejection rates.

(4) Provision for sales returns
Same as on the left.

(5) Provision for directors’ bonuses
To provide for directors’ bonus obligation, an
allowance is provided in the amount based on theestimated bonus obligations in the current fiscal year.

(5) Provision for directors’ bonuses
Same as on the left.

5. Cash and cash
equivalents incash flow
statements

Cash and cash equivalents consist of cash on hand andbank deposits which can be withdrawn at any time andshort-term investments with the duration of threemonths or less which can be easily converted to cash
and are exposed to little risk of change in value.

Same as on the left.

6. Other significant
items

Accounting for consumption taxes
The consumption taxes are accounted by the
tax-exclusion method.

Same as on the left.

18

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Changes in Significant Accounting Policies
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Accounting standards for lease transactions)
In prior years, the Company accounted for finance leasetransactions where there is no transfer of ownership as ordinary
lease transactions for accounting purpose. However, the Company
has adopted “Accounting Standards for Lease Transactions”(ASBJ Statement No. 13: originally issued on June 17, 1993 by
Section 1 of the Business Accounting Deliberation Counsel, andrevised on March 30, 2007 by Accounting Standards Board ofJapan), and “Guidance on Accounting Standards for Lease
Transactions” (ASBJ Guidance No. 16: originally issued on
January 18, 1994 by Accounting Standards Committee of theJapanese Institute of Certified Public Accountants, and revised on
March 30, 2007 by Accounting Standards Board of Japan) in thecurrent fiscal year, and uses an accounting method for leases thatis based on the method used for ordinary purchases and sales.
For finance lease transactions where there is no transfer ofownership beginning prior year to the fiscal year when thesestandards are first applied, the Company continues to use an
accounting method that is based on the method used for ordinary
lease transactions.
There is no effect of this change on earnings.

19

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Reclassifications
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Balance Sheets)
With the adoption of “Cabinet Office Ordinance Partially
Revising Regulation for Terminology, Forms and Preparation
Methods of Financial Statements” (Cabinet Office Ordinance No.
50, August 7, 2008), “Merchandise” and “Finished goods” arereclassified and presented as “Merchandise and finished goods,”
and “Raw materials” and “Supplies” are reclassified andpresented as “Raw materials and supplies” in the current fiscal
year.
The amount of “Merchandise,” “Finished goods,” “Rawmaterials,” and “Supplies” in the current fiscal year was 315,253
thousand yen, 1,100,006 thousand yen, 1,540,515 thousand yen,and 127,977 thousand yen, respectively.

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)(Balance Sheets)(Statements of Income)In the past, some dermatological preparations were included in“Merchandise” because the manufacture of products that Fuji
Pharma had permission to manufacture and sell was outsourced toother companies. However, to present these business operations ina more appropriate manner, these products are included in“Finished goods” in the current fiscal year. In conjunction withthis change, the cost of these products has been moved from “Costof purchased goods” to “Cost of products manufactured,” andsales of these products have been moved from “Net sales ofgoods” to “Net sales of finished goods.”
The amounts of these four items prior to these cost and sales
reclassifications for the current fiscal year are shown below.
Cost of purchased goods
1,622,658
Cost of products manufactured
9,313,402
Net sales of finished goods
17,027,197
Net sales of goods
2,671,285“Provision of allowance for doubtful accounts,” included in“Other” under “Selling, general and administrative expenses” inthe previous fiscal year, is reclassified and presented as a separate
line item in the current fiscal year since it has increasedmateriality in the context of consolidated financial statements.
“Provision of allowance for doubtful accounts,” included in“Other” under “Selling, general and administrative expenses” inthe previous fiscal year totaled 371 thousand yen.
“Dividends income of life insurance,” “Commission income,” and“Compensation income” included in “Miscellaneous income”
under non-operating income in the previous fiscal year, isreclassified and presented as a separate line item in the current
fiscal year since the amount exceeded 10/100 of total
non-operating income. “Dividends income of life insurance,”“Commission income,” and “Compensation income” included in“Miscellaneous income” under non-operating income in theprevious fiscal year totaled 1,803 thousand yen, 1,176 thousand
yen, and 1,947 thousand yen, respectively.
“Fiduciary obligation fee” under non-operating income in theprevious fiscal year, is reclassified and included in “Miscellaneous
income” in the current fiscal year. “Fiduciary obligation fee”
included in “Miscellaneous income” under non-operating incomein the current fiscal year totaled 507 thousand yen.

20

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Notes to Non-consolidated Financial Statements
Statements of Income

13,689(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)*1. Breakdown of transfer from other accountTransfer from cost of products manufactured
8,517*2. Ending inventories are shown after written down on the bookvalues to reflect declines in profitability. The amount written
down on the book values due to decline in profitability ofnormal inventories for sale are as follows.
Cost of sales
63,433Extraordinary loss
54,337*2. Ending inventories are shown after written down on the bookvalues to reflect declines in profitability. The amount written
down on the book values due to decline in profitability (after
netting of the amount reversed using the reversal method) of
normal inventories for sale are as follows.
Cost of sales(24,081)*3. Breakdown of transfer to other accountLoss on valuation of inventories
Amount equivalent to inventories of goods at
end of prior year after retroactive revision ofunit prices of goods
Selling, general and administrative expenses
Total*3. Breakdown of transfer to other accountSelling, general and administrative expenses

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)*1. Breakdown of transfer from other accountTransfer from cost of products manufactured

47,306

8,794

36,352
10,09693,755*4. Total amount of research and development expenses
Research and development expenses included
918,821in general and administrative expenses*4. Total amount of research and development expenses
Research and development expenses included
1,114,446
in general and administrative expenses*5. Breakdown of gain on prior period adjustment
1) Adjustments associated with retroactive revision of unit pricesof good
Amount equivalent to prior-year cost of
50,480purchased goods
Amount equivalent to inventories of goods at the(36,352)
end of previous fiscal year
(Net) Amount equivalent to prior-year cost of sales(14,128)*5.

2) Adjustment in prior-year selling expenses resulting fromretroactive revision of corresponding share of selling expenses
8,258*6. Gain on sales of noncurrent assets
Land

32,721*7. Breakdown of loss on retirement of noncurrent assets
Buildings
Machinery and equipment
Tools, furniture and fixtures
Total

1,160
513
236
1,910

*8.

*6.

*7. Breakdown of loss on retirement of noncurrent assets
Buildings
36,251
Structures
776
Machinery and equipment
5,348
Tools, furniture and fixtures
2,404
Removal expenses on noncurrent assets
21,380Total
66,161*8. Contribution from co-development project
The division of the co-development expenses associated with the
G-CSF formulation is based on an agreement with MochidaPharmaceutical Co., Ltd.

21

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)*9.

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)*9. Impairment loss
The Company recognized an impairment loss on the following
group of assets.
Location
Use
Item
Exclusive rights to
Chiyoda-ku,
sales of ethical
DistributorshipTokyopharmaceuticals
Fuji Pharma groups business assets for the entire company andassigns idle assets, sales rights and other items to these asset
groups individually.
For the exclusive rights (sales rights) for some ethicalpharmaceuticals, the valuation of the amount that can be recovered
has been written down to zero due to the termination of thedevelopment of these drugs because of changes in market
conditions. The balance that had not yet been written off wasrecognized as an impairment loss (50,000 thousand yen).

22

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Statements of Changes in Net Assets
FY9/09 (Oct. 1, 2008 – Sep. 30, 2009)
1. Type and number of issued shares and treasury stock
Number of shares
as of Sep. 30, 2008

(Shares)
Increase

Number of shares
as of Sep. 30, 2009

Decrease

Issued shares
Common stockTotal

12,870,000--

12,870,000

12,870,000--

12,870,000

10

-

-

10

10

-

-

10

Treasury stock
Common stock
Total

2. Items related to subscription rights to shares and treasury stock
Not applicable.
3. Dividends(1) Dividend payment
Resolution
Annual shareholders’ meetingon Dec. 19, 2008
Board of Directors’ meeting on
Mar. 26, 2009

Type of share

Total amount of dividend(Thousands of yen)

Dividend pershare (Yen)Record date

Effective dateCommon stock

128,699

10

Sep. 30, 2008

Dec. 22, 2008

Common stock

141,569

11

Mar. 31, 2009

Jun. 1, 2009

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution

Type of share

Annual shareholders’ meetingon Dec. 18, 2009

Commonstock

Total amount ofdividend(Thousands of yen)

Source offunds

Dividend pershare (Yen)Record date

Effective date

167,309

Retainedearnings

13

Sep. 30, 2009

Dec. 21, 200923

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

FY9/10 (Oct. 1, 2009 – Sep. 30, 2010)
1. Type and number of issued shares and treasury stock
Number of shares
as of Sep. 30, 2009

(Shares)
Increase

Number of shares
as of Sep. 30, 2010

Decrease

Issued shares
Common stockTotal

12,870,000--

12,870,000

12,870,000--

12,870,000

10

-

-

10

10

-

-

10

Treasury stock
Common stock
Total

2. Items related to subscription rights to shares and treasury stock
Not applicable.
3. Dividends(1) Dividend payment
Resolution
Annual shareholders’ meetingon Dec. 18, 2009
Board of Directors’ meeting on
Apr. 30, 2010

Type of share

Total amount of dividend(Thousands of yen)

Dividend pershare (Yen)Record date

Effective dateCommon stock

167,309

13

Sep. 30, 2009

Dec. 21, 2009

Common stock

167,309

13

Mar. 31, 2010

Jun. 1, 2010

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution

Type of share

Annual shareholders’ meetingon Dec. 20, 2010

Commonstock

Total amount ofdividend(Thousands of yen)

Source offunds

Dividend pershare (Yen)Record date

Effective date

218,789

Retainedearnings

17

Sep. 30, 2010

Dec. 21, 2010

Notes to Statements of Cash Flows(Thousands of yen)
FY9/09FY9/10(Oct. 1, 2008 – Sep. 30, 2009)(Oct. 1, 2009 – Sep. 30, 2010)*Relationship between the cash and cash equivalents at end of the *Relationship between the cash and cash equivalents at end of theperiod and the amount booked in the balance sheets
period and the amount booked in the balance sheets(As of Sep. 30, 2009)(As of Sep. 30, 2010)
Cash and deposits
2,161,361
Cash and deposits
2,592,763
Short-term investment securities
706,832
Short-term investment securities
504,910
Time deposit with maturities over 3 months(200,000)
Cash and cash equivalents
3,097,674
Cash and cash equivalents
2,668,19424

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Lease Transactions(Thousands of yen)
FY9/09FY9/10(Oct. 1, 2008 – Sep. 30, 2009)(Oct. 1, 2009 – Sep. 30, 2010)
1. Finance lease transactions (lessee)
1. Finance lease transactions (lessee)
Finance lease transactions where there is no transfer of ownership Finance lease transactions where there is no transfer of ownership
1) Breakdown of lease assets
Mainly the drug production facility (machinery and equipment)

1) Breakdown of lease assets
Mainly the drug production facility (machinery and equipment)2) Depreciation of lease assets
As noted in the section on Significant Accounting Policies, “3.
Depreciation and amortization of noncurrent assets.”
For finance lease transactions where there is no transfer ofownership beginning on or before September 30, 2008,
depreciation is calculated using an accounting method that isbased on the method used for ordinary lease transactions.

2) Depreciation of lease assets
As noted in the section on Significant Accounting Policies, “3.
Depreciation and amortization of noncurrent assets.”
For finance lease transactions where there is no transfer ofownership beginning on or before September 30, 2008,
depreciation is calculated using an accounting method that isbased on the method used for ordinary lease transactions.

(1) The acquisition costs, accumulated depreciation and closingbalance equivalents of the lease assets.
Machinery and Equipment
Acquisition costs equivalents
2,069,108
Accumulated depreciation equivalents
1,183,492
Closing balance equivalents
885,615
VehiclesAcquisition costs equivalents
66,400
Accumulated depreciation equivalents
39,117
Closing balance equivalents
27,283Tools, furniture and fixtures
Acquisition costs equivalents
6,771
Accumulated depreciation equivalents
4,737
Closing balance equivalents
2,033
Total
Acquisition costs equivalents
2,142,280
Accumulated depreciation equivalents
1,227,347
Closing balance equivalents
914,932(1) The acquisition costs, accumulated depreciation and closingbalance equivalents of the lease assets.
Machinery and Equipment
Acquisition costs equivalents
1,774,330
Accumulated depreciation equivalents
1,287,232
Closing balance equivalents
487,098
VehiclesAcquisition costs equivalents
52,751
Accumulated depreciation equivalents
37,820
Closing balance equivalents
14,930Tools, furniture and fixtures
Acquisition costs equivalents
3,660
Accumulated depreciation equivalents
2,846
Closing balance equivalents
813
Total
Acquisition costs equivalents
1,830,741
Accumulated depreciation equivalents
1,327,899
Closing balance equivalents
502,842(2) The closing balance equivalents of the unexpired lease
payments
Due within one year
423,087
Due after one year
528,727
Total
951,814(2) The closing balance equivalents of the unexpired lease
payments
Due within one year
215,501
Due after one year
313,226
Total
528,727(3) Lease payment, and depreciation and interest equivalents
Lease payments
260,466
Depreciation equivalents
233,108
Interest equivalents
20,163(3) Lease payment, and depreciation and interest equivalents
Lease payments
233,088
Depreciation equivalents
210,198
Interest equivalents
13,602(4) Methods of calculation of depreciation equivalents
Depreciation of lease assets is calculated on the basis of thestraight-line method assuming the respective lease terms as theuseful lives. As for the residual value, in the case of agreements
stipulating the residual value assured, the residual value
concerned is adopted and in any other cases, the residual value isassumed at zero.

(4) Methods of calculation of depreciation equivalents
Same as on the left.

25

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)(5) Methods of calculation of interest equivalents
Same as on the left.

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(5) Methods of calculation of interest equivalents
The difference between the total amount of the lease payments(excluding maintenance and administration cost equivalents) andthe acquisition cost equivalents of the lease assets is treated asinterest equivalents and the way of allocating the interest to therespective fiscal years applied is by the interest method.
2. Operating lease transactions
Of which noncancelable outstanding lease commitments:
Due in one year or less
90,792
Due after one year
175,914
Total
266,706(Loss on impairment)
There is no loss on impairment allocated to lease assets.

2. Operating lease transactions
Of which noncancelable outstanding lease commitments:
Due in one year or less
89,782
Due after one year
86,132
Total
175,914(Loss on impairment)
Same as on the left.

26

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Financial Instruments
FY9/10 (Oct. 1, 2009 – Sep. 30, 2010)
1. Conditions of financial instruments(1) Management policy
The Company relies primarily on internal liquidity for the funds required in accordance with business plans for the operation of its
pharmaceutical manufacturing and sales activities. In addition, any temporarily unneeded funds are invested in financial instrumentsthat have a high degree of safety.
(2) Details of financial instruments, their risks and risk management system
Notes and accounts receivable-trade, which are operating receivables, are exposed to credit risk associated with clients and suppliers.
The Company manages the collection dates and amounts due for each client or supplier in accordance with its internal regulations. In
addition, based on the financial condition of each client or supplier, the Company reduces its exposure to credit risk by receiving
guarantee deposits from clients and suppliers.
Short-term investment securities and investment securities are shares of companies with which we have a business relationship or
debt securities such as government bonds, and are subject to the risk from fluctuation of market prices. We manage this risk bymonitoring the fair values in each quarter and using other methods.
Notes and accounts payable-trade, which are operating debt, are mostly due within one year. Current liabilities, including these
operating debt, are exposed to liquidity risk on the payment date. The Company manages liquidity risk by preparing and updating
monthly cash flow plans, maintaining sufficient liquidity and taking other actions.
Substantially all of income taxes payable are due two months or less from the balance sheet date.
2. Fair value of financial instruments
The carrying value, fair value, and their differences as of September 30, 2010 are shown as follows. However, financial instruments,
whose fair value is deemed to be extremely difficult to measure, are not included. (Please refer to Notes 2 below.)(Thousands of yen)
Carrying value

Fair value

Differences(1) Cash and deposits

2,592,763

2,592,763-(2) Notes and accounts receivable-trade

7,686,941

7,686,941-

625,337

625,337-

Assets total

10,905,043

10,905,043-(1) Notes and accounts payable-trade

3,330,934

3,330,934-

804,082804,082-

4,135,017

4,135,017-(3) Short-term investment securities and investment securities
Available-for-sale securities(2) Income taxes payable
Liabilities total

Notes: 1. Matters concerning determination of fair value of financial instruments and short-term investment securities
Assets(1) Cash and deposits, (2) Notes and accounts receivable-trade
Fair value of the above financial instruments is deemed to be equal to their carrying amount because they are settled within a shortperiod of time.
(3) Short-term investment securities and investment securities
Fair value of the above financial instruments is based on quoted market price and fair value of debt securities is based on either
quoted market price or quoted price offered by our financial institutions.
Liabilities(1) Notes and accounts payable-trade, (2) Income taxes payable
Fair value of the above financial instruments is deemed to be equal to their carrying amount because they are settled within a shortperiod of time.

27

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

2. Financial instruments whose fair value is deemed to be extremely difficult to measure(Thousands of yen)
Item

Carrying value

Unlisted stocks (Note 1)

10,200

Lease and guarantee deposits (Note 2)

374,712Note 1. Unlisted stocks are not included because there is no market price and the fair value is deemed to be extremely difficult todetermine; this information is not subject to fair value disclosure.
Note 2. Some of the lease and guarantee deposits for leased properties have no market values and it is not possible to calculate theeffective deposit period between the start and end of occupancy. In addition, some guarantee deposits are accumulated
guarantees associated with leases. Since these guarantees may be used for lease payments during the lease contract period,
these guarantees are not subject to fair value disclosure because determining a reasonable estimate of cash flows is extremely
difficult.
3. The amount of monetary claims and marketable securities with maturity dates scheduled to be redeemed subsequent to theconsolidated balance sheet date(Thousands of yen)Less than 1 year

1-5 years

5-10 years

Over 10 years

Cash and deposits

2,592,763---

Notes and accounts receivable-trade

7,686,941

-

-

-

-

100,000--

10,279,705

100,000--

Short-term investment securities andinvestment securities
Of which available-for-sale securities
with maturity dates
Government bonds, Municipal bonds,
etc.
Total
(Additional information)“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, March 10, 2008) and its “Implementation Guidance on
Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19, March 10, 2008) were applied effective from thecurrent fiscal year.

28Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Securities Holdings
Securities
1. Available-for-sale securities with market quotations(Thousands of yen)
FY9/10(As of Sep. 30, 2010)
Acquisition
Carrying
Unrealized
cost
value
gain (loss)

FY9/09(As of Sep. 30, 2009)
Acquisition
Carrying
Unrealized
cost
value
gain (loss)

Item

Stock

631

767

135

-

-

-

99,980102,564

2,584

99,980102,090

2,110

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100,611103,3312,720

99,980102,090

2,110

Stock
Securities
Debt securities
whose
Government bonds,
carrying value municipal bonds, etc.
does notCorporate bonds
exceed their
Otheracquisition
Other
cost
Subtotal

36,323

24,639(11,683)

25,573

18,336(7,237)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

36,323

24,639(11,683)

25,573

18,336(7,237)

Total

136,934

127,971(8,963)

125,553

120,427(5,126)

Debt securities
Securities
Government bonds,
whose
carrying value municipal bonds, etc.
Corporate bonds
exceeds theiracquisition
Other
cost
Other
Subtotal

Notes: 1. Acquisition cost in the table represents book values after impairment. Available-for-sale securities with market quotationsof 11,380 thousand yen were written down in the current fiscal year. In the event that the value of securities is estimated to
decline 50% or more from the acquisition cost, the Company applies the impairment accounting method to the securities.
2. Unlisted stocks (carrying value of 10,200 thousand yen) are not included in the above table reporting the status ofavailable-for-sale securities because there is no market price and the fair value is deemed to be extremely difficult todetermine.
2. Marketable securities without market quotations(Thousands of yen)
FY9/10(As of Sep. 30, 2010)

FY9/09(As of Sep. 30, 2009)

Item

Carrying value

Carrying value

Other securities
Free Financial Fund

504,528

Money Management Fund

202,304-

Unlisted stock

10,200

10,200504,910

3. The redemption schedule of available-for-sale securities with maturity dates

Item

FY9/09(As of Sep. 30, 2009)
Over 10years

Less than 1
year(Thousands of yen)
FY9/10(As of Sep. 30, 2010)
Over 10
1-5 years 5-10 years
years

Less than 1year

1-5 years

5-10 years

1. Debt securities(1) Government bonds,
Municipal bonds, etc.
(2) Corporate bonds-

100,000

-

-

-

-

-

-

-

-

-

(3) Other

-

-

-

-

-

-

-

-

2. Other
Total

-

-

100,000

-

-

-

-

-

-

-

-

-

-

-

100,000---

100,000--

29

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Derivative Transactions
FY9/09 (Oct. 1, 2008 – Sep. 30, 2009)
Not applicable because the Company did not have any derivative transactions.
FY9/10 (Oct. 1, 2009 – Sep. 30, 2010)
Not applicable because the Company did not have any derivative transactions.

Retirement Benefit Plan
1. Description of the retirement benefit plan
The Company provides a lump-sum pension plan in accordance with internal rules. Furthermore, the Company is a member of the
Smaller Enterprise Retirement Allowance Mutual Aid Corporation. The Company may provide a premium severance pay dependingon the reason for an employee’s resignation.
In April 2003, the Company amended the lump-sum pension plan and introduced the defined contribution pension plan and the
prepaid retirement benefit plan.
2. Breakdown of the retirement benefit obligations(Thousands of yen)
FY9/10(As of Sep. 30, 2010)

FY9/09(As of Sep. 30, 2009)(1) Retirement benefit obligations(2) Estimated retirement benefit to be provided by Mutual Aid
Corporation(3) Provision for retirement benefits (1-2)

700,141

712,469

182,391

157,094

517,749555,375

3. Breakdown of the retirement benefit expenses
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(1) Service costs(2) Premium severance allowance paid temporarily(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

72,30472,242995

1,123(3) Premiums paid to the Defined Contribution Pension Fund

24,50024,844(4) Prepaid retirement benefits

8,207

9,198

(5) Retirement benefit expenses

106,007

107,409

4. Assumptions used in accounting for the retirement benefit obligations, etc.
The Company applied the simplified method for the calculation of the retirement benefit obligations, etc. Therefore, the Company
does not provide the assumptions used in estimating the obligations.

Stock Options
Not applicable.

Business Combinations
Not applicable.

Investment and Rental Property
Not applicable.

30

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Tax Effect Accounting
FY9/09(As of Sep. 30, 2009)
1. Breakdown of deferred tax assets and liabilities(Deferred tax assets)
Nondeductible provision for bonuses
Nondeductible provision for retirement benefits
Accrued enterprise tax
Loss on valuation of inventories
Valuation difference on available-for-salesecurities
Other
Total deferred tax assets

265,311
210,724
58,16736,904
3,648
65,594640,350

2. Difference between the effective tax rate and the rate of income
tax based on the tax effect accounting
Statutory tax rate
40.7%
(Disparity)
Deductible experiment and research expenses(3.9)%
Residential tax for the period
0.5%Entertainment expenses and other items not to be
0.9%
included in expenses indefinitely
Other
0.0%
Statutory tax rate based on the tax effect accounting
38.2%(Thousands of yen)
FY9/10(As of Sep. 30, 2010)
1. Breakdown of deferred tax assets and liabilities(Deferred tax assets)
Nondeductible provision for bonuses
329,149
Nondeductible provision for retirement benefits
226,037
Accrued enterprise tax
65,777
Nondeductible social expenses on employee
36,915bonuses
Loss on valuation of inventories
21,163
Valuation difference on available-for-sale
2,086
securities
Other
67,414
Total eferr d tax assets
748,544
2. Difference between the effective tax rate and the rate of income
tax based on the tax effect accounting
Statutory tax rate
40.7%
(Disparity)
Deductible experiment and research expenses(3.5)%
Residential tax for the period
0.4%Entertainment expenses and other items not to be
0.6%
included in expenses indefinitely
Other
0.2%
Statutory tax rate based on the tax effect accounting
38.4%

Equity in Income of Affiliates
FY9/09 (Oct. 1, 2008 – Sep. 30, 2009)
Not applicable.
FY9/10 (Oct. 1, 2009 – Sep. 30, 2010)
Not applicable.

31

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Transactions with Concerned Parties
FY9/09 (Oct. 1, 2008 – Sep. 30, 2009)(Additional information)
Effective from the current fiscal year, the Company has adopted “Accounting Standard for Related Party Disclosure” (ASBJ Statement
No. 11, October 17, 2006) and the “Guidance on Accounting Standard for Related Party Disclosures” (ASBJ Guidance No. 13, October
17, 2006).
As a result, transactions with Company directors are no longer subject to disclosure.
Parent company, major corporate shareholders etc. of the Company
Attribute

Major shareholders

Company name

Mitsui & Co., Ltd.

Address

Chiyoda-ku, Tokyo

Capital or invested amount

339,626,747 thousand yen

Business details or occupation

General trading company

Proportion of voting rights held (or being held)(Being owned) Directly 15.0%

Details of relationshipSupply of raw materials and merchandise

Transaction details

Transaction amount(Thousands of yen)Supply of raw materials andmerchandise (Notes 1, 2)

Account

2,025,887

Accounts payable-trade

Closing balance(Thousands of yen)711,363

Notes: 1. The amounts of the above transaction values do not include consumption taxes, while closing balances include consumption
taxes.
2. Supply of raw materials and merchandise was based on arm-length transactions.
FY9/10 (Oct. 1, 2009 – Sep. 30, 2010)
Parent company, major corporate shareholders etc. of the Company
Attribute

Major shareholders

Company name

Mitsui & Co., Ltd.

Address

Chiyoda-ku, Tokyo

Capital or invested amount

341,481,648 thousand yen

Business details or occupation

General trading company

Proportion of voting rights held (or being held)(Being owned) Directly 15.0%

Details of relationshipSupply of raw materials

Transaction details

Supply of raw materials

Transaction amount(Thousands of yen)Account

2,157,083

Accounts payable-trade

Closing balance(Thousands of yen)
711,800

Notes: 1. The amounts of the above transaction values do not include consumption taxes, while closing balances include consumption
taxes.
2. Supply of raw materials was based on arm-length transactions.

32

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

Per Share Data
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
Net assets per share
1,260.42
Net income per share
118.57
Diluted net income per share is not presented because there are no
latent shares, such as bonds with subscription rights to sharesissued by the Company.

(Yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)
Net assets per share
1,385.65
Net income per share
151.05
Diluted net income per share is not presented because there are no
latent shares, such as bonds with subscription rights to sharesissued by the Company.

Note: The basis of calculating the net income per share is as follows:

Net income (Thousands of yen)Amount not applicable to ordinary shareholders (Thousands of yen)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

1,525,958

1,944,071--

Net income applicable to common stock (Thousands of yen)

1,525,958

1,944,071

Average number of shares outstanding (Shares)

12,869,990

12,869,990

Material Subsequent Events
FY9/09 (Oct. 1, 2008 – Sep. 30, 2009)
Not applicable.
FY9/10 (Oct. 1, 2009 – Sep. 30, 2010)
Not applicable.

33

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

5. Others(1) Changes in Directors
1) Change of Representative Director
Not applicable.
2) Change of other board members- Candidate for director appointment
Atsuya Mihashi, Director(Currently Executive Officer, General Manager of Marketing Division, Manager of Marketing Planning
Department)- Retiring director
Hozumi Shimohori, Managing Director(2) Other Information
Goods Manufactured, Orders Received and Sales
1. Breakdown of goods manufactured(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

AmountAmount%YoY change (%)%

Diagnostic drugs

7,099,19444.2

8,911,303

50.9

25.5

Hormone drugs

4,264,418

26.6

4,180,902

23.9

(2.0)

Circulatory drugs
Antibiotics &Chemotherapeutics
Urogenital & genital organ
drugs
Dermatological preparation

1,300,201

8.1

1,012,027

5.8(22.2)

858,3145.3

655,0963.7(23.7)

317,0882.0

447,882

2.6

41.2

227,697

1.4

254,615

1.4

11.8

Other

1,995,415

12.4

2,060,635

11.7

3.3

16,062,330

100.0

17,522,463

100.0

9.1

Total

Notes: 1. The above amounts are calculated based on selling prices and do not include consumption taxes.
2. Fractions less than one thousand yen are omitted.
3. In the current fiscal year, some dermatological preparations were reclassified from merchandise to finished goods.
The breakdown of goods manufactured for the current fiscal year under the former classifications is shown below.

(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)
AmountYoY change (%)%

Diagnostic drugs

8,911,303

51.0

25.5

Hormone drugs

4,180,902

23.9

(2.0)

Circulatory drugs
Antibiotics &Chemotherapeutics
Urogenital & genital organ
drugs
Dermatological preparation

1,012,027

5.8(22.2)

655,0963.8(23.7)

447,8822.6

41.2

187,038

1.1

17.9

Other

2,060,635

11.8

3.3

17,454,887

100.0

8.7

Total

34

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

2. Breakdown of goods purchased(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

AmountAmount%YoY change (%)%

Hormone drugs

321,46927.8

787,577

49.7

145.0

In vitro diagnostic
Antibiotics &Chemotherapeutics
Dermatological preparation

667,56557.8

699,960

44.2

4.9

2,534

0.2

3,747

0.2

47.8

50,236

4.4

-

-

-

Other
Total

112,966

9.8

92,8995.9(17.8)

1,154,771

100.0

1,584,184

100.0

37.2

Notes: 1. The above amounts are calculated based on purchasing prices and do not include consumption taxes.
2. Fractions less than one thousand yen are omitted.
3. In the current fiscal year, some dermatological preparations were reclassified from merchandise to finished goods.
The breakdown of goods purchased for the current fiscal year under the former classifications is shown below.

(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)
AmountYoY change (%)%

Hormone drugs

787,577

48.6

145.0

In vitro diagnostic

699,960

43.1

4.9

Dermatological preparation
Antibiotics &Chemotherapeutics
Other

38,4732.4(23.4)

3,747

0.2

47.8

92,8995.7(17.8)

Total

1,622,658

100.0

40.5

3. Orders received
The Company manufactures products not on a build-to-order basis, but on a sales projection basis.

35

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/10

4. Breakdown of sales(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

FY9/10(Oct. 1, 2009 – Sep. 30, 2010)

AmountAmount%YoY change (%)%(Finished goods)
Diagnostic drugs

6,983,814

40.6

8,494,026

43.1

21.6

Hormone drugs

3,806,844

22.1

4,010,259

20.4

5.3

Circulatory drugs

1,161,931

6.8

1,155,981

5.9

(0.5)

636,9883.7

672,520

3.4

5.6

Antibiotics & Chemotherapeutics
Urogenital & genital organ drugs

364,297

2.1

389,6412.0

7.0

Dermatological preparation

196,7411.2

293,6631.5

49.3

1,618,903

9.4

2,098,181

10.6

29.6

14,769,522

85.9

17,114,273

86.9

15.9

Hormone drugs

1,008,255

5.9

1,393,419

7.1

38.2

In vitro diagnostic

1,124,533

6.5

999,466

5.1(11.1)

OthersSubtotal(Merchandise)

Antibiotics & Chemotherapeutics

9,694

0.1

8,231

0.0

(15.1)

Dermatological preparation

91,338

0.5

3,654

0.0

(96.0)

Others

195,4311.1

179,436

0.9

(8.2)

Subtotal

2,429,253

14.1

2,584,208

13.1

6.4

Total

17,198,775

100.0

19,698,482

100.0

14.5

Notes: 1. The above amounts are calculated based on selling prices and do not include consumption taxes.
2. Fractions less than one thousand yen are omitted.
3. In the current fiscal year, some dermatological preparations were reclassified from merchandise to finished goods.
The breakdown of sales for the current fiscal year under the former classifications is shown below.

(Thousands of yen)
FY9/10(Oct. 1, 2009 – Sep. 30, 2010)
AmountYoY change (%)%(Finished goods)
Diagnostic drugs

8,494,026

43.1

21.6

Hormone drugs

4,010,259

20.4

5.3

Circulatory drugs

1,155,981

5.9

(0.5)

Antibiotics & Chemotherapeutics

672,520

3.4

5.6

Urogenital & genital organ drugs

389,6412.0

7.0

Dermatological preparation

206,586

1.0

5.0

2,098,181

10.6

29.6

17,027,197

86.4

15.3

Hormone drugs

1,393,419

7.1

38.2

In vitro diagnostic

999,466

5.1(11.1)

Dermatological preparation

90,7310.5(0.7)

Antibiotics & Chemotherapeutics

8,231

0.0

(15.1)

OthersSubtotal(Merchandise)

Others179,436

0.9

(8.2)

Subtotal

2,671,285

13.6

10.0

Total

19,698,482

100.0

14.5

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared inaccordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English
translation.

36