May 9, 2008
Non-Consolidated Interim Financial Results for the Fiscal Year Ending September 30, 2008
Company name:

Fuji Pharma Co., Ltd.

Code number:

4554 (http://www.fujipharma.jp)

Stock exchange listing:

JQ

Representative:

Hirofumi Imai, Representative Director and President

Contact:

Toyoyuki Kamide, Director, General Manager of Administration Department
Tel: 81-(3)-3556-3344

Scheduled submission date of semi-annual securities report: June 20, 2008
Scheduled start date of dividend payment: June 2, 2008
1. Financial Results for the First Half of the Fiscal Year Ending September 30, 2008 (October 1, 2007 to March
31, 2008)(1) Operating Results
Net sales
Million yen

First half ended March 2008
First half ended March 2007
Fiscal year ended September 2007

Operating income

YoY change
(%)

6,839
6,410
13,2506.7
21.8

Net income
Million yen

Ordinary income

YoY change(%)

Million yen

1,027
1,053
2,103

YoY change(%)

Million yen

-2.5
52.1

1,029
1,058
2,129

-2.7
49.2

Net income per share

Diluted net income
per share

Yen

Yen

YoY change
(%)

639
7.4
594
38.6
1,193
Note: Earnings on investments in equity-method affiliates:

49.66
46.22
92.74

First half ended March 2008
First half ended March 2007
Fiscal year ended September 2007-

First half period ended March 2008: NoneFirst half period ended March 2007: None
Fiscal year ended September 2007:

None(2) Financial Position
Total assets

Net assets

Equity ratio

Million yen

Million yen(%)

19,37914,49017,667
13,512
19,211
14,008
Note: Equity: First half period ended March 2008:
14,490 million yen

First half ended March 2008
First half ended March 2007
Fiscal year ended September 2007

First half period ended March 2007:

13,512 million yen

Fiscal year ended September 2007:

14,008 million yen

1

74.8
76.5
72.9

Net assets
per shareYen

1,125.89
1,049.94
1,088.48

(3) Cash Flow
Balance of cash andcash equivalents at
end of period

Net cash provided by (used in)Operating
Investing
Financing
activities
activities
activities
First half ended March 2008
First half ended March 2007
Fiscal year ended September 2007

Million yen

Million yen

Million yen

Million yen

366
802
1,659

-571
339
-94

-154
-89
-179

3,283
3,309
3,643

2. Dividends

Fiscal year ended September 2007
Fiscal year ending September 2008

First half
7.00
10.00

Dividend per share (yen)Second half
12.00
10.00
(estimate)

Annual19.00
20.00(estimate)

3. Forecasts for the Fiscal Year Ending September 2008 (October 1, 2007 to September 30, 2008)
Net income
Net sales
Operating income Ordinary income
Net income
per share
Million yen

15,300 (15.5%)

Million yen
2,190 (4.1%)

Million yen
2,200 (3.3%)

Million yen
1,320 (10.6%)

Yen
102.56

Note: Percentages represent year-on-year changes.

4. Supplementary Information(1) Changes in accounting principles and procedures, and presentation methods for the preparation of interim
financial statements (to be described in the “Changes in Significant Accounting Policies” section)(i) Changes in accordance with amendments to accounting standards: None(ii) Changes other than those which fall under (i): None
(2) Number of issued shares (common stock)(i) Number of issued shares as of the end of period (including treasury stock shares):Fiscal half-year period ended March 2008: 12,870,000 sharesFiscal half-year period ended March 2007: 12,870,000 sharesFiscal year ended September 2007:

12,870,000 shares(ii) Number of treasury stock shares as of the end of period:
Fiscal half-year period ended March 2008:

10 shares

Fiscal half-year period ended March 2007:

10 shares

Fiscal year ended September 2007:

10 shares

Note: For the number of shares used for the calculation of net income per share, please see “Per Share Data” on Page 24.

(Note to our earnings forecasts)
Our earnings forecasts are based on the information available and on the assumptions which we regard as reasonable
at the date of this release. Actual results could significantly differ from our estimates because of uncertain factors
inherent to such forecasts and subsequent changes in circumstances.
2

I. Review of Operating Performance and Financial Conditions
1. Analysis of Operating Performance
During the interim period concerned, the Japanese economy’s pace of recovery slowed down as it experienced adownturn in growth of corporate earnings and capital expenditure.
In the ethical pharmaceutical industry, we have further developed an appropriate environment for expansion of thegeneric drugs market by such means as issuing a direction to increase the quantity share of generic drugs to 30%
or more by fiscal 2012 as part of the medical expense control policy that is under way.
In these circumstances, the Company reinforced its sales force with the aim of winning as new customers those
hospitals that adopt the diagnosis procedure combination (DPC) system, and increasing the number of items
adopted by customers. And at the same time, we made efforts to expand our market share for key products, driven
by the dedicated team, so that we can have another focus area of fertility treatment drugs.
The Company also established a dedicated team and positively increased the number of MRs with the aim of
releasing a new drug called “Lunabell tablets” for treatment of dysmenorrhea caused by endometriosis.
As a result, sales for the interim period concerned recorded 6,839 million yen (6.7% YoY increase). On the profit
side, the Company recorded operating income of 1,027 million yen (2.5% YoY decrease), ordinary income of
1,029 million yen (2.7% YoY decrease) and interim net income of 639 million yen (7.4 % YoY increase).
Looking at the details of sales, sales of diagnostic drugs represented by our key products, urinary tract and bloodvessel imaging agents “OYPALOMIN” and “IOPAQUE,” remained mostly unchanged at 2,515 million yen (0.7%
YoY increase), but sales of hormone drugs represented by fertility treatment drugs including pituitary
gonadotropic hormone drugs “Human Menopausal Gonadotrophin” and “FOLYRMON-P Injection” and an
endometriosis therapeutic drug “BUSERECUR” recorded 1,796 million yen (10.3% YoY increase), and sales of invitro diagnostics greatly increased to 515 million yen (60.0% YoY increase) because of a great increase in thesales of an influenza reagent. As a result, the overall sales recorded a 6.7% YoY increase.
In terms of profit, the cost-to-sales ratio increased to 56.5%, up 1.4 percentage points on a year-on-year basis.
This increase was mainly the result of reductions in sales prices in connection with the revisions to drug prices
made in April this year, and the increase in production costs owing to factors such as capital expenditure. In
selling, general and administrative expenses, while personnel costs increased because of the increase in number ofMRs, research and development costs decreased. Net income for the interim period increased over the previous
half-year period as a result of a decrease in extraordinary losses on a year-on-year basis.
In light of the above results for the first half and the increase in sales owing to release of “Lunabell tablets” andexpansion of hospitals adopting the DPC system, the Company projects sales of 15,300 million yen (15.5% YoY
increase), operating income of 2,190 million yen (4.1% YoY increase), ordinary income of 2,200 million yen(3.3% YoY increase) and net income of 1,320 million yen (10.6% YoY increase) for the fiscal year ending
3

September 30, 2008, as planned at the beginning of the fiscal year.
2. Financial Conditions(Assets, Liabilities and Net Assets)
The closing balance of assets as at the end of the period concerned increased by 168 million yen from the opening
balance to 19,379 million yen. Among current assets, inventories increased by 376 million yen, but trade accounts
receivable decreased by 508 million yen, and cash on hand and bank deposits fell by 361 million yen.
The closing balance of fixed assets increased by 543 million yen from the opening balance, mainly because ofcapital expenditure aimed at enhancing production capacity for lyophilized products.
The closing balance of liabilities as at the end of the period concerned decreased by 313 million yen from theopening balance to 4,889 million yen. While other accounts payable increased by 436 million yen, accrued
income taxes decreased by 298 million yen, trade accounts payable fell by 199 million yen, and accrued bonuses
for employees decreased by 180 million yen.
The closing balance of net assets as of the end of the period concerned increased by 481 million yen from theopening balance to 14,490 million yen. This is attributable to an increase of 484 million yen in earned surplus
carried forward, which was the result of net income of 639 million yen and a dividend payment of 153 million
yen.
(Cash Flow)
The closing balance of cash and cash equivalents as at the end of the period decreased by 359 million yen fromthe opening balance to 3,283 million yen. The Company’s cash flow is represented as follows:i) Net cash provided by operating activities
Net cash provided by operating activities for the period was 366 million yen. As the factors that provided thecash, decrease of 536 million yen in trade receivables and depreciation of 319 million yen were added to net
income before income taxes of 1,017 million yen. On the other hand, factors that used the cash were as
follows: an increase in inventories of 376 million yen; a decrease in accrued bonuses for employees of 180
million yen; and a decrease in trade payables of 153 million yen.
ii) Net cash used in investing activities
The net cash used in investment activities was 571 million yen. As the contributing factors, the Company
spent 265 million yen to purchase intangible fixed assets and 195 million yen to buy property, plant andequipment.
iii) Net cash used in financing activities
Net cash used in financing activities, which was mainly due to the payment of dividends, was 154 million
yen.

4Trends observed in the Company’s cash flow indicators are as follows
Equity ratio (%)
Market value basis equity ratio (%)
Interest-bearing debt to cash flow
ratio (%)
Interest coverage ratio (Times)

FY2006 H1
74.5
107.1

FY2007 H1
76.5
113.6

FY2008 H1
74.8
178.0

FY200676.6
103.5

FY2007
72.9
146.7

58.6

13.2

28.8

27.2

12.8

672.5

768.6

270.3

332.5

706.2

・ Equity ratio = Equity ÷ Total assets
・ Market value basis equity ratio = Market capitalization ÷ Total assets
・ Interest-bearing debt to cash flow ratio = Interest-bearing debt ÷ Cash flow
(in the case of interim periods, operating cash flow × 2)
・ Interest coverage ratio = Cash flow ÷ Interest paid*

“Guaranteed deposit received” in the Liability section of the Balance Sheet is used as interest-bearing debt.

*“Net cash provided by operating activities” in Cash Flow Statements and “Interest paid” in Notes to Income
Statements are used as “Cash flow” and “Interest paid” respectively.

3. Basic Policy on Profit Allocation and Dividends in the Fiscal Year Ending September 30, 2008
One of our key tasks is to achieve a stable dividend payment or dividend per share increase. We determine profit
allocation based on the net profit generated during the period concerned, comprehensively taking into accountfuture company performance and earnings to be retained for future business development.
We plan to re-invest retained earnings for research and development expenditures to strengthen operationalfoundations; for capital expenditures to enhance corporate value and to improve production capacity andefficiency; and for funding requirements to expand and strengthen our sales force.
We decided to increase our interim cash dividend per share to 10 yen, an increase of 3 yen from the previous
half-year period.
We currently plan to pay 10 yen per share as the year-end cash dividend. As a result, our annual cash dividend
per share should be 20 yen. There are no special plans to change the frequency of dividend payments.
4. Operational Risk
Risks related to the information contained in the financial statements for the interim period concerned which
may have significant influence on investors’ decisions are as follows.
(1) Statutory Regulation
Our company manufactures and distributes pharmaceutical products under the Pharmaceutical Affairs Law
and related regulations. Applications and amendments and revisions to the Law and related regulations,which may be made in future, may have influences on our financial condition and business performance.
(2) Research and Development for Pharmaceutical Products
There is a possibility that our research and development projects for new products will be behind schedule; anew product development period will be extended; and the projects will be suspended or even terminated.
These events may have an impact on our business performance.
5(3) Competition
Our policy is to sell our products at reasonable prices taking into account the profitability of products.
However, some of our products have been suffering from considerable market price decline because of the
fierce competition from many competitors. Moreover, some original drug manufacturers have taken an
aggressive approach to maintain their market share. Therefore, there is a possibility that we will not manage
to achieve our projected estimate.
(4) Sales of a New Drug
Selling a new drug is a first-time challenge for the Company. Although we are taking all necessary measuresin preparation for the sales, we may be forced to change our plan if any unexpected events arise such as
incidence of side effects.
The above represents our opinion of our future prospects as of the end of the interim period concerned.

II. Group Organization
This item is not applicable because the Company does not have any subsidiaries and affiliates.

III. Management Policies
1. Fundamental Management Policy
Our corporate mission is “Making a contribution to society by developing, producing and supplying
pharmaceutical products useful for improving and overcoming diseases and disorders”. Looking ahead, under
this mission, we intend to continuously fulfill our responsibilities to our stockholders, customers, employees,
local and overall society and other stakeholders by supplying good-quality pharmaceutical products and toachieve continuous growth.
2. Performance Indicators and Targets
In order to meet stockholders’ expectations about profit allocation as well as preparing for the upgrading or
expansion of production facilities, and the increase in research and development costs which will beaccompanied by future business expansion, we will pursue the profit-oriented management style. In our“Medium-term Management Plan” for a multi-year period ending September 30, 2010, we set, as our specificgoals for the fiscal year ending September 30, 2010, sales of 20,000 million yen (sales were 13,250 million yen
in the previous term), ordinary income of 3,300 million yen (2,129 million yen in the previous term), an
ordinary-income-to-sales percentage of 16.5% (16.1% in the previous term), and a return-on-assets percentage
of 14.5% (11.8% in the previous term). Furthermore, with regard to the rise in stockholder value, we see thevalue for net income per share as an important performance indicator and will aim for 154 yen as of the fiscal
year ending September 30, 2010 (92.74 yen as of the fiscal year ended September 30, 2007).

6

3. Medium- and Long-term Management Strategy
We will invest our management resources in a focused way in our strong areas: injectable solutions in terms ofdosage form, hormone and diagnostic drugs in terms of drug efficacy, obstetrics and gynecology, androentgenology in terms of the medical examination field. We will allocate a strategic budget to these areas forproactive measures such as business alliances, license agreements, product development and capital expenditure.
With regard to the obstetric and gynecologic area, we will enhance our generic product line-up and introduce
new drugs from other pharmaceutical companies. We will market these drugs to our existing customers in order
to efficiently increase our sales. We believe improving our product portfolio including new drugs will lead to afurther expansion of our business into the field of medical care for women.
As for acute treatment, we plan to positively launch our unique competitive products centering on injectable
solutions in response to the increasing introduction of DPC at hospitals.
In terms of sales, we will endeavor to establish a new drug sales system and strengthen our expertise. In terms of
production, we will endeavor to develop a steady supply system to meet the demand for generic drugs, which we
expect to expand, and establish our unique production technology for sustained-release (drug delivery system)
products.
4. Key Challenges
The generic product market has been expanding amid calls for a cut in national medical expenses. Meanwhile,
more and more newcomers, including domestic original drug manufacturers and leading foreign drug makers,
have entered into Japan's growing generic product market. In addition, medical institutions’ needs for quality
assurance, stable product supply and information provision are further increasing. Under these circumstances, inorder to maintain and improve our competitive position in the market, and to increase the effectiveness of ouractive growth strategies, such as new development investment plans, we will address the following key
challenges:
1)

We will strengthen our research and development ability through our alliance with both domestic andforeign pharmaceutical manufacturers.

2)

We will reinforce the sales and marketing systems for foundation hospitals by improving the expertise of
MRs and strengthening our support to academic research.

3)

We will build marketing and sales systems for our new drugs.

4)

Responding to possible increasing need for quality improvement, demand expansion and stable supply, we
will upgrade and expand our production systems.

5)

The importance of corporate social responsibility has been gradually recognized. We will adopt
thoroughgoing measures to secure product quality/safety and environmental protection, and to educate our
employees to comply with pharmaceutical business related laws/regulations and ethical standards.

6)

We will establish an internal control system relating to financial reporting.

7)

We will foster human resources and secure the necessary personnel for our further growth.
7

5. Development and Operation of Internal Control System
1) Mutual supervision system, organizational structure of operational and administrative divisions,company rules preparation and other internal control systems
Under our company’s mutual supervision system, the Internal Auditor, controlled directly by the president,
periodically conducts internal auditing to confirm whether each department’s every operation complies withlaws and regulations, and company rules. The Auditor directly reports the results of the internal auditing to
the president and gives advice and suggestions to the department audited.
As administration divisions, we have established the business strategy office responsible for company-widebusiness planning, the business promotion office responsible for monitoring results against budget and theadministration department responsible for general affairs, personnel affairs, accounting, finance andlogistics, and have been conducting internal management and control across the Company.
2) Measures to improve the internal control system in the past year
We have set up a project team for development of an internal control system for financial reporting andhave been working to enhance our internal control system by such means as inspecting the company-wide
internal control and major operational processes and developing the necessary documents.
In addition, we have continuously endeavored to keep our personnel well informed about measures forprevention of insider trading and drunken driving.
6. Other Significant Information on Management
There is no information to be disclosed.

8IV. Financial Statements
1. Balance Sheets(Thousands of yen)
As of March 31, 2007
AmountAs of March 31, 2008

Ratio
(%)

AmountRatio(%)

As of September 30, 2007
Change inamountAmount

Ratio(%)

AssetsI Current assets
Cash on hand and bank deposits
Trade notes receivable

2,108,729*2

Trade accounts receivable

2,579,386

2,940,649

656,445674,070

702,142

4,407,842

4,240,927

4,749,850

Securities

1,200,995

704,095

702,702

Inventories

2,736,425

3,492,871

3,116,637

Other current assets

364,212695,855

550,922

Allowance for doubtful receivables-1,519-1,474
11,473,131

Total current assets

64.9-1,635
12,385,730

63.9

912,599

12,761,268

66.4

II Fixed assets
Property, plant and equipment *1
Buildings

2,665,935

2,744,233

2,627,250

Machinery and equipment

670,597

957,816

809,295

Other property, plant andequipment

698,137

689,638

780,005

4,034,670

4,391,688

4,216,550

Total property, plant andequipment
Intangible fixed assets
Investments and other assets

607,114

831,983

590,439

1,552,859

1,770,112

1,642,827

Total fixed assets

6,194,644

35.1

6,993,784

36.1

799,1396,449,818

33.6

Total assets

17,667,776 100.0

19,379,515

100.0

1,711,738

19,211,087

100.0

9

As of March 31, 2007
Ratio
(%)

Amount(Thousands of yen)
As of September 30, 2007

As of March 31, 2008
Ratio
(%)

AmountChange inamountRatio(%)

AmountLiabilities
I Current liabilities
Trade notes payable

239,154342,799

296,634

Trade accounts payable

1,821,545

1,928,516

2,128,212

Other accounts payable

394,686

1,003,201

566,835

Accrued income taxes

380,253285,502584,486

Accrued bonuses for employees

384,448394,888575,086

Accrued bonuses for directors

8,920

7,200

17,300Allowance for sales return

8,055

9,278

8,890

Other current liabilities

237,094

204,191

325,1613,474,158

Total current liabilities

19.7

4,175,577

21.6

701,419

4,502,606

23.5

II Fixed liabilities
Guaranteed deposits received

211,381

210,934

211,972

Accrued retirement benefits for
employees

397,401

436,079

410,733

Accrued retirement benefits for
directors

72,168-

77,110

Other fixed liabilities-

Total fixed liabilities
Total liabilities

66,752-680,951

3.8

713,765

3.6

32,814

699,816

3.6

4,155,110

23.5

4,889,343

25.2

734,233

5,202,423

27.1

1,616,950

9.2

1,616,950

8.3-

1,616,950

8.4

2,841,587

14.8

9,544,117

49.7

Net assets
I Stockholders’ equity
Common stock
Capital surplus
Additional paid-in capital
Other capital surplus

2,226,020

2,226,020

615,567

615,567
2,841,587

Total of capital surplus

2,226,020

16.1

615,567
2,841,587

14.7-

Retained earnings
Legal reserve

164,079

164,079

164,079

Contingent reserve

5,000,000

5,000,000

5,000,000

Earned surplus carried forward

3,871,354

4,864,661

Other retained earnings

9,035,433

Total of retained earnings
Treasury stock
Total stockholders’ equity

51.1

4,380,038
10,028,740

51.8

993,306

-7

-0.0

-7

-0.0

-

-7

-0.0

13,493,963

76.4

14,487,270

74.8

993,306

14,002,647

72.9-15,801

6,016

0.0

II Valuation and translation
adjustments
Net unrealized holding gain on
securities
Total valuation andtranslation adjustments

18,702

2,901

6,016

18,7020.1

2,901

Total net assets

13,512,666

76.5

14,490,171

74.8

977,505

14,008,663

72.9

Total liabilities and net assets

17,667,776 100.0

19,379,515

100.0

1,711,738

19,211,087

100.0

10

0.0

2. Income Statements(Thousands of yen)First half ended
March 31, 2007

First half ended March 31, 2008
Ratio
(%)

AmountFiscal year ended
September 30, 2007

AmountRatio(%)

Change inamountRatio(%)

AmountI Net sales

6,410,840 100.0

6,839,906

100.0

429,065

13,250,520

100.0

II Cost of sales

3,530,843

55.1

3,861,049

56.4

330,205

7,296,424

55.1

Gross profit

2,879,997

44.9

2,978,856

43.5

98,8595,954,095

44.9

-681

-0.0

387

0.0

1,069

153

0.0

2,880,678

44.9

2,978,469

43.5

97,7905,953,941

44.9

1,826,846

28.5

1,950,509

28.5

123,663

3,850,612

29.0

1,053,832

16.4

1,027,959

15.0-25,873

2,103,329

15.9

Provision for allowance for sales
returns
Net gross profit
III Selling, general andadministrative expenses*1

Operating Income
IV Non-operating income

*2

9,496

0.2

8,730

0.2

-766

36,546

0.3

V Non-operating expenses

*3

4,339

0.1

6,740

0.1

2,401

10,7630.1

1,058,989

16.5

1,029,948

15.1-29,040

2,129,112

16.1

Ordinary income
VI Extraordinary gains

*4

-

-

161

0.0

161

-

-

VII Extraordinary losses*550,4060.8

12,6870.2-37,719

140,4411.1

1,008,583

15.7

1,017,422

14.9

8,839

1,988,670

15.0

795,091

6.0

1,193,579

9.0

Income before income taxes
Income taxes – current

367,247

Income taxes – deferred

46,531

Net income

273,272
413,778

6.4

594,805

9.3

105,08711

865,859
378,360

5.6-35,418

639,0629.3

44,257-70,767

3. Statements of Changes in Net Assets
First Half Ended March 31, 2007 (From October 1, 2006 to March 31, 2007)(Thousands of yen)

Stockholders’ equity
Capital surplus
Commonstock
Balance at beginning of
periodChanges in the period
Dividends from surplus
Net income
Net change of items otherthan stockholders’ equity
Total changes in the period
Balance at end of period

1,616,950

1,616,950

Additional
paid-in
capitalOther capitalsurplus

Total capitalsurplus

Legal reserve

2,226,020

615,567

2,841,587

164,079

2,226,020

Stockholders’ equity
Total
Treasurystockholders’stockequityBalance at beginning of
periodChanges in the period
Dividends from surplus
Net income
Net change of items otherthan stockholders’ equity
Total changes in the period
Balance at end of period-712,989,248

615,567

2,841,587

164,079

Valuation and translation adjustments
Net unrealized
Total valuation
holding gain on
and translation
securities
adjustments
23,808504,715
13,493,963

5,000,000

5,000,000

Total
retainedearnings

3,366,639

8,530,718-90,089594,805-90,089594,805

504,715
3,871,354

504,715
9,035,433

Total net assets

23,80813,013,056-90,089594,805-7

Retained earnings
Other retained earnings
Earned surplus
Contingent
carriedreserveforward-90,089594,805-5,105-5,105-5,105-5,10518,702-5,10518,702499,60913,512,666

First Half Ended March 31, 2008 (From October 1, 2007 to March 31, 2008)(Thousands of yen)

Stockholders’ equity
Capital surplus
Commonstock
Balance at beginning of
periodChanges in the period
Dividends from surplus
Net income
Net change of items otherthan stockholders’ equity
Total changes in the period
Balance at end of period

1,616,950

1,616,950

Additional
paid-in
capitalOther capitalsurplus

Total capitalsurplus

Legal reserve

2,226,020

615,567

2,841,587

164,079

2,226,020

Stockholders’ equity
Total
Treasurystockholders’stockequityBalance at beginning of
periodChanges in the period
Dividends from surplus
Net income
Net change of items otherthan stockholders’ equity
Total changes in the period
Balance at end of period-7

14,002,647

615,567

2,841,587

164,079

Valuation and translation adjustments
Net unrealized
Total valuation
holding gain on
and translation
securities
adjustments
6,016

6,016

-154,439
639,062-7

484,622
14,487,270

Retained earnings
Other retained earnings
Earned surplus
Contingent
carriedreserveforward5,000,000

5,000,000

Total net assets

14,008,663-154,439
639,062-3,114-3,114-3,114-3,114
2,901-3,114
2,901

481,507
14,490,171

12

Total
retainedearnings

4,380,038

9,544,117-154,439
639,062-154,439
639,062

484,6224,864,661

484,622
10,028,740

Fiscal Year Ended September 30, 2007 (From October 1, 2006 to September 30, 2007)(Thousands of yen)

Stockholders’ equity
Capital surplus
Commonstock
Balance at beginning of
periodChanges in the period
Dividends from surplus
Net income
Net change of items otherthan stockholders’ equity
Total changes in the period
Balance at end of period

1,616,950

1,616,950

Additional
paid-in
capitalOther capitalsurplus

Total capitalsurplus

Legal reserve

2,226,020

615,567

2,841,587

164,079

2,226,020

Stockholders’ equity
Total
Treasurystockholders’stockequityBalance at beginning of
periodChanges in the period
Dividends from surplus
Net income
Net change of items otherthan stockholders’ equity
Total changes in the period
Balance at end of period-712,989,248

615,567

2,841,587

164,079

Valuation and translation adjustments
Total valuation
Net unrealized
and translation
holding gain on
adjustments
securities
23,80823,808-180,179
1,193,579-7

1,013,399
14,002,647

Retained earnings
Other retained earnings
Earned surplus
Contingent
carriedreserveforward5,000,000

5,000,000

Total net assets

13,013,056-180,179
1,193,579-17,791-17,791-17,791-17,791
6,016-17,791
6,016

995,607
14,008,663

13

Total
retainedearnings

3,366,639

8,530,718-180,179
1,193,579-180,179
1,193,579

1,013,399
4,380,038

1,013,399
9,544,117

4. Cash Flow Statements(Thousands of yen)First half ended
Mar. 31, 2007
AmountFirst half ended
Mar. 31, 2008
AmountChange inAmountFiscal year ended
Sep. 30, 2007
AmountI Cash flows from operating activities
Income before income taxes

1,008,583

1,017,422

1,988,670

Depreciation and amortization

272,712319,372

587,034

Increase in retirement benefits for employees

26,17425,34639,505

Increase (decrease) in retirement benefits for directors

20,676-77,110

25,618

Increase (decrease) in allowance for doubtful receivables

39

-161

155

Increase (decrease) in accrued bonuses for employees-80,408-180,197

110,229

Increase (decrease) in accrued bonuses for directors-6,380-10,100

2,000

-681

387

153

-5,064-5,146-10,650

Increase (decrease) in allowance for sales return
Interest and dividends income
Loss on disposal of capital assets

5,604

109

5,974

Decrease (increase) in trade receivable-131,677

536,995-519,382

Increase in inventories-588,160-207,948-376,233

Decrease (increase) in advanced money

6,273-6,659-Decrease (increase) in other accounts receivable

2,340-47,133-5,925Decrease (increase) in long-term prepaid expenses

3,240-85,506-33,407

Increase (decrease) in trade payable

178,584-153,530

542,730

Increase in other accounts payable

3,655

42,62469,495-66,752-

Increase (decrease) in accrued expenses-17,004-18,927

30,697

Increase (decrease) in accrued consumption taxes

74,230-107,448

119,351

Increase (decrease) in guaranteed deposits received

2,734-1,038

3,326

Others47,536-11,082-16,469

Sub total

1,203,221

928,731

Increase in other long-term accounts payable

Interests and dividends received-274,490

2,350,949

4,275

5,136

10,214-405,399-567,743-702,111

802,097

366,124

Purchase of short-term investment securities-99,883--99,883

Proceeds from sales of short-term investment securities

600,000-

600,000

Purchase of investment securities-10,000--10,000

Purchase of property, plant and equipment-149,402-195,562-476,749-720-265,221-3,608--222,550-52,000

Proceeds from sales of leased assets-

162,750-

Payment of guaranteed deposits--50,112-50,112

Income taxes paid
Net cash used by operating activities-435,973

1,659,052

II Cash flows from investing activities

Purchase of intangible fixed assets
Purchase of leased assets

OthersNet cash used in investing activities

-856

-856

339,137-571,552-1,712-910,689-94,066

III Cash flows from financing activities-89,860-154,442

Net cash provided by financing activities

Cash dividends paid

-89,860-154,442-64,582-179,984

IV Decrease in cash and cash equivalents

1,051,375-359,870-1,411,245

1,385,002

V Opening balance of cash and cash equivalents

2,258,349

3,643,351

1,385,002

2,258,349

VI Closing balance of cash and cash equivalents

3,309,725

3,283,481-26,2433,643,351

14-179,984

Significant Accounting Policies
1. Valuation Criteria
and Methods for Assets

2. Depreciation andAmortization of Fixed
AssetsFirst half ended
Mar. 31, 2007
1) Securities holding:i Marketable securities:
Market value method on thebasis of market price as of thebalance sheet date
(Changes in net unrealized
gain or loss are included
directly in net assets and thecost price of securities sold is
calculated by the moving
average method.)First half ended
Mar. 31, 2008
1) Securities holding:i Marketable securities:
Same as on the left

ii Non-marketable securities:
Moving average cost method
2) Inventories:
First-in, first-out cost method
1) Depreciation on property,
plant and equipment:
Declining-balance method:
However, depreciation on thebuildings which we bought after
April 1, 1998 (excluding thefacilities attached to thebuildings) is calculated by thestraight-line method. The useful
lives of major property, plantand equipment are summarized
as follows:
Buildings: 7 to 50 years
Machinery and equipment: 7
years

ii Non-marketable securities:
Same as on the left
2) Inventories:
Same as on the left
1) Depreciation on property,
plant and equipment:
Same as on the left

Fiscal year ended Sep. 30, 2007
1) Securities holding:i Marketable securities:
Market value method on thebasis of market price as of thebalance sheet date
(Changes in net unrealized
gain or loss are included
directly in net assets and thecost price of securities sold is
calculated by the moving
average method.)
ii Non-marketable securities:
Same as on the left
2) Inventories:
Same as on the left
1) Depreciation on property,
plant and equipment:
Same as on the left

(Supplementary Information)
According to the amendment
to the Corporate Tax Law, 5%of acquisition cost net ofmemorandum value of fixed
assets obtained on or before
March 31, 2007 are evenly
amortized over five years andincluded in depreciation
expense from the immediately
following fiscal year of the
fiscal year in which theremaining book value becomesas small as 5% of acquisition
cost by depreciation inaccordance with thedepreciation method under the
Corporate Tax Law before
amendment.
As a result, operating income,ordinary income and income
before income taxes decreased
by 4,604 thousand yen
respectively.

2) Amortization of intangible
fixed assets:
Straight-line method:
Amortization of the computer
software utilized within ourcompany is calculated by thestraight-line method on the basisof the available duration (5years).

2) Amortization of intangible
fixed assets:
Same as on the left

152) Amortization of intangible
fixed assets:
Same as on the left

3. Basis for Significant
AllowancesFirst half ended
Mar. 31, 2007
3) Amortization of long-term
prepaid expenses:
Straight-line method

First half ended
Mar. 31, 2008
3) Amortization of long-term
prepaid expenses:
Same as on the left.

3) Amortization of long-term
prepaid expenses:
Same as on the left.

1) Allowance for doubtfulreceivables:
The allowance for doubtfulreceivables is provided forpossible losses on bad debts at
an amount determined by thefollowing methods. For ordinary
receivables, loan loss ratio
method (the historicalexperience of bad debts) isapplied and for specificuncollectible receivables such as
those of high default risk, we
examine the possibility ofrecovery of the respective
account.
2) Accrued bonuses for
employees:
Accrued bonuses are provided
for the payment of bonuses to
employees based on estimatedamounts of future payments,
which is attributable to theinterim fiscal year concerned.
3) Accrued retirement benefits
for employees:
Accrued retirement benefits for
employees are provided forpossible payment of employees’
post-retirement benefits at theamount to be accrued at thebalance sheet date and are
calculated based on an estimateof the projected benefit
obligation and the employees’
pension plan assets.
4) Accrued retirement benefits
for directors:
Accrued retirement benefits for
directors are provided with theamount estimated as of the endof the interim fiscal year
concerned to be paid inaccordance with the internal
rules for such retirement
benefits for directors.

1) Allowance for doubtfulreceivables:
Same as on the left.

1) Allowance for doubtfulreceivables:
Same as on the left.

2) Accrued bonuses for
employees:
Same as on the left.

2) Accrued bonuses for
employees:
Accrued bonuses are provided
for the payment of bonuses to
employees based on estimatedamounts of future payments.

3) Accrued retirement
benefits for employees:
Same as on the left.

3) Accrued retirement benefits
for employees: Accrued
retirement benefits for
employees are provided forpossible payment of employees’
post-retirement benefits at theamount to be accrued at thebalance sheet date and are
calculated based on an estimateof the projected benefit
obligation and the employees’
pension plan assets.
4) Accrued retirement benefits
for directors:
Accrued retirement benefits for
directors are provided with theamount estimated as of the endof the fiscal year concerned tobe paid in accordance with theinternal rules for such retirement
benefits for directors.

4) Accrued retirement
benefits for directors:–––––––––––––(Supplementary Information)
The retirement benefits systemfor directors was abolished atthe 43rd ordinary general
meeting of stockholders held
on December 20, 2007.
Provision for retirement
benefits for directors in theamount of 77,110 thousand
yen recognized as of the end of
the previous fiscal year wastransferred to “other fixedliabilities” on the same date inconnection with the approvalon the proposal for the final
16

Fiscal year ended Sep. 30, 2007

First half ended
Mar. 31, 2007

First half ended
Mar. 31, 2008
payment of retirement benefits
for directors setting the timingof grant at retirement of eachdirector.

Fiscal year ended Sep. 30, 2007

5) Allowance for sales returns:
Allowance for sales returns isprovided with expected grossprofit from volume of returns
calculated based on past
rejection rates in preparation forsales returns.

5) Allowance for sales
returns:
Same as on the left.

5) Allowance for sales returns:
Same as on the left.

6) Accrued bonuses for
directors:
Accrued bonuses are provided
for bonuses with the amountestimated as of the end of theinterim fiscal year concerned tobe paid to directors in
subsequent periods.

6) Accrued bonuses for
directors:
Same as on the left.

6) Accrued bonuses for
directors:
Accrued bonuses are provided
for bonuses with the amountestimated as of the end of the
fiscal year concerned to be paid
to directors in subsequent
periods.

4. Accounting for
Lease Transactions

The accounting procedures
conforming to the accounting
method for the usual operatinglease contract are applied tofinance lease agreements
excluding those stipulating thetransfer of ownership of theleased assets to the lessee.

Same as on the left.

Same as on the left.

5. Cash and Cash
Equivalents in Cash
Flow Statements

Cash and cash equivalents
consist of cash on hand andbank deposits which can bewithdrawn at any time andshort-term investments with theduration of three months or lesswhich can be easily converted to
cash and are exposed to little
risk of change in value.

Same as on the left.

Same as on the left.

6. Other Significant
Items(Accounting for Consumption
Tax)
Tax-exclusive method is applied
to the accounting fortransactions subject toconsumption tax. The netbalance between consumption
taxes paid tentatively and thosereceived tentatively isrepresented as “Other current
liabilities" in Current liabilities.

(Accounting forConsumption Tax)Same as on the left.

(Accounting for Consumption
Tax)
Tax-exclusive method is applied
to the accounting fortransactions subject toconsumption tax.

17

Changes in Significant Accounting Policies
First half ended
Mar. 31, 2007

First half ended
Mar. 31, 2008––––––––––––––––––––

Fiscal year ended Sep. 30, 2007
(Accounting for depreciation)
In a revision to the Corporate Tax Law,
the Company changed its accounting
method for depreciation on property,
plant and equipment in the fiscal year
concerned. The Company applied the
new method to the property, plant andequipment which were acquired on orafter April 1, 2007.
This change decreased operating income,ordinary income and net income before
taxes by 9,692 thousand yen each.

Notes to Financial Statements(Notes to Balance Sheets)
First half ended
Mar. 31, 2007
* 1 Accumulated depreciation ofproperty, plant and equipment
3,488,886 thousand yen

First half ended
Mar. 31, 2008
* 1 Accumulated depreciation ofproperty, plant and equipment
4,064,806 thousand yen* 2 Notes receivable and payable due on
the interim fiscal year end
Notes receivable and payable due on theinterim fiscal year end are accounted forbased on the nominal maturity date,although the interim fiscal year
concerned was a holiday for financial
institutions. The amount of notes
receivable and payable due on the fiscal
year end is as follows:
Notes receivable: 83,053 thousand yen
Notes payable:
10,492 thousand yen*2––––––––––

Fiscal year ended Sep. 30, 2007
* 1 Accumulated depreciation ofproperty, plant and equipment
3,771,978 thousand yen* 2 Notes receivable and payable due on
the fiscal year end
Notes receivable and payable due on thefiscal year end are accounted for basedon the nominal maturity date, although
the fiscal year concerned was a holiday
for financial institutions. The amount ofnotes receivable and payable due on thefiscal year end is as follows:
Notes receivable: 80,942 thousand yen
Notes payable:
13,470 thousand yen(Notes to Income Statements)
First half ended
Mar. 31, 2007
*1 Breakdown of selling, general andadministrative expenses:(Thousands of yen)
Salaries and bonuses:
410,183
Research and development expenses:
339,305
Provision for bonuses to employees:
233,461
Sales commission:
155,498
Welfare expenses:
104,896
Rent:
94,581
Packaging and transportation expenses:
79,753
Provision for retirement benefits:
17,947First half ended
Mar. 31, 2008
*1 Breakdown of selling, general andadministrative expenses:(Thousands of yen)
Salaries and bonuses:
490,691
Research and development expenses:
263,511
Provision for bonuses to employees:
252,181
Sales commission:
156,857
Welfare expenses:
120,847
Rent:
106,891
Packaging and transportation
expenses:
84,317
Provision for retirement benefits:
20,25418

Fiscal year ended Sep. 30, 2007
*1 Breakdown of selling, general andadministrative expenses:(Thousands of yen)
Salaries and bonuses:
983,831
Research and development expenses:
686,986
Provision for bonuses to employees:
356,809
Sales commission:
319,057
Welfare expenses:
237,254
Rent:
190,758
Packaging and transportation
expenses:
160,905
Provision for retirement benefits:
37,551

First half ended
Mar. 31, 2007
*2 Major items of non-operating income:(Thousands of yen)Interest on securities:
3,091Interest received and discountincome:1,849

First half ended
Mar. 31, 2008
*2 Major items of non-operating income:(Thousands of yen)Interest received and discountincome:2,630Interest on securities:
2,347*3 Major items of non-operating
expenses:(Thousands of yen)
Penalty for breach of leaseagreements:
1,649
Sales discount:
1,176
Interests paid:
1,043
Depreciation expense:
381*3 Major items of non-operating
expenses:(Thousands of yen)
Disposal cost of consigned
intermediates:
3,302
Interests paid:
1,354
Sales discount:
1,158*3 Major items of non-operating
expenses:(Thousands of yen)Interest paid:
2,349
Sales discount:
2,236

*4

––––––––––*4 Major items of extraordinary gains:(Thousands of yen)
Reversal of allowance for doubtfulreceivables:
161*4*5 Major items of extraordinary losses:(Thousands of yen)
Provision for retirement benefits for
directors in prior periods:
24,101
Loss on disposal of inventories:
20,700Loss on retirement of fixed assets:
5,604*5 Major items of extraordinary losses:(Thousands of yen)
Loss on disposal of inventories:
12,577*5 Major items of extraordinary losses:(Thousands of yen)
Loss on disposal of inventories:
104,944
Provision for retirement benefits for
directors in prior period:
24,101
Loss on retirement of fixed assets:
5,974

6 Depreciation and amortization
recognized:(Thousands of yen)
Property, plant and equipment:
248,761
Intangible fixed assets
23,9506 Depreciation and amortization
recognized:(Thousands of yen)
Property, plant and equipment:
295,094
Intangible fixed assets
24,277

6 Depreciation and amortization
recognized:(Thousands of yen)
Property, plant and equipment:
538,544
Intangible fixed assets
48,489Fiscal year ended Sep. 30, 2007
*2 Major items of non-operating income:(Thousands of yen)
Subcontracting fees:
14,983
Interest received and discountincome:6,541Interest on securities:
3,720––––––––––(Notes to Statements of Changes in Net Assets)
First Half Ended Mar. 31, 2007
1. Notes concerning class and number of issued shares
Class
Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Number of shares asof Sep. 30, 2006

Increase in number ofshares during theperiodDecrease in numberof shares during theperiodNumber of shares asof Mar. 31, 2007

12,870,000
12,870,000--

12,870,000
12,870,000

10
10

-

-

10
10

2. Notes concerning share warrants and own share options
Not applicable.
193. Notes concerning dividends(1) Dividends paid
Resolution

Type of stock

Total
dividends(thousandsof yen)General stockholders’ meetingon December 20, 2006

Commonstock

90,089Dividend pershare (yen)Record date

Effective date

7

September 30,
2006

December 21,
2006(2) Of the dividends for which the record date was included in the interim fiscal year concerned, those forwhich the effective date occurs after the closing of the period
Resolution

Type of
stock

Total
dividends(thousandsof yen)Source ofdividends

Dividend pershare (yen)Record date

Effective date

Board of directors’ meetingon May 10, 2007

Commonstock

90,089Retainedearnings

7

March 31,2007

June 1, 2007

First-Half Ended Mar. 31, 2008
1. Notes concerning class and number of issued shares
Class

Number of shares asof Sep. 30, 2007

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Increase in number ofshares during theperiodDecrease in numberof shares during theperiodNumber of shares asof Mar. 31, 2008

12,870,000
12,870,000--

12,870,000
12,870,000

10
10

-

-

10
10

2. Notes concerning share warrants and own share options
Not applicable.
3. Notes concerning dividends(1) Dividends paid
Resolution

Type of stock

Total
dividends(thousandsof yen)General stockholders’ meetingon December 20, 2007

Commonstock

154,439

Dividend pershare (yen)Record date

Effective date

12

September 30,
2007

December 21,
2007(2) Of the dividends for which the record date was included in the interim fiscal year concerned, those forwhich the effective date occurs after the closing of the period
Resolution

Type of
stock

Total
dividends(thousandsof yen)Source ofdividends

Dividend pershare (yen)Record date

Effective date

Board of directors’ meetingon May 9, 2008

Commonstock

128,699

Retainedearnings

10

March 31,2008

June 2, 200820

Fiscal Year Ended Sep. 30, 2007
1. Notes concerning class and number of issued shares
Class

Number of shares asof Sep. 30, 2006

Outstanding shares
Common stock
Total
Treasury stock
Common stock
Total

Decrease in numberof shares during theperiodIncrease in number ofshares during theperiodNumber of shares asof Sep. 30, 2007

12,870,000
12,870,000--

12,870,000
12,870,000

10
10

-

-

10
10

2. Notes concerning share warrants and own share options
Not applicable.
3. Notes concerning dividends(1) Dividends paid
Resolution

Type ofstock

General stockholders’ meetingon December 20, 2006
Board of directors’ meeting on
May 10, 2007

Commonstock
Commonstock

Total
dividends(thousandsof yen)Dividend pershare (yen)Record date

Effective date

90,0897

September 30,
2006

December 21,
2006

90,0897

March 31, 2007

June 1, 2007

(2) Of the dividends for which the record date was included in the fiscal year concerned, those for which
the effective date occurs after the closing of the period
Resolution

Type of
stock

Total
dividends(thousandsof yen)Source ofdividends

Dividend
per share(yen)

Record date

Effective date

General stockholders’ meetingon December 20, 2007

Commonstock

154,439

Retainedearnings

12

September 30,
2007

December 21,
2007(Notes to Cash Flow Statements)
Cash and cash equivalents balance at end of the period and the relationship between the balance and theamount booked in the balance sheets:(Thousands of yen)
As of Mar. 31, 2007
Cash on hand and at banks
Marketable securities
Cash and cash equivalents

2,108,729
1,200,995
3,309,725

As of Mar. 31, 2008
Cash on hand and at banks
Marketable securities
Cash and cash equivalents

21

2,579,386
704,095
3,283,481

As of Sep. 30, 2007
Cash on hand and at banks
Marketable securities
Cash and cash equivalents

2,940,649
702,7023,643,351

(Notes Concerning Lease Transactions)First half ended Mar. 31, 2007
1. Finance lease transactions except for
those agreements stipulating the transferof ownership of the leased assets to thelesseeFirst half ended Mar. 31, 2008
1. Finance lease transactions except for
those agreements stipulating the transferof ownership of the leased assets to thelessee(Thousands of yen)
Fiscal year ended Sep. 30, 2007
1. Finance lease transactions except for
those agreements stipulating the transferof ownership of the leased assets to thelessee(1) The pro forma amounts of theacquisition costs, accumulated
depreciation and net book value of theleased assets(Machinery and equipment)
Acquisition costs:
2,156,589
Accumulated depreciation:
696,202
Net book value:
1,460,386(1) The pro forma amounts of theacquisition costs, accumulated
depreciation and net book value of theleased assets(Machinery and equipment)
Acquisition costs:
2,156,589
Accumulated depreciation:
920,891
Net book value:
1,235,697(1) The pro forma amounts of theacquisition costs, accumulated
depreciation and net book value of theleased assets(Machinery and equipment)
Acquisition costs:
2,156,589
Accumulated depreciation:
808,546
Net book value:
1,348,042(Vehicles and other transportationequipment)
Acquisition costs:
95,500
Accumulated depreciation:
55,434
Net book value:
40,066(Vehicles and other transportationequipment)
Acquisition costs:
86,896
Accumulated depreciation:
46,778Net book value:
40,118(Vehicles and other transportationequipment)
Acquisition costs:
84,042
Accumulated depreciation:
40,218Net book value:
43,824(Tools, furniture and fixtures)
Acquisition costs:
Accumulated depreciation:
Net book value:

49,11034,88914,221(Tools, furniture and fixtures)
Acquisition costs:
Accumulated depreciation:
Net book value:(Tools, furniture and fixtures)
Acquisition costs:
Accumulated depreciation:
Net book value:

49,11039,05010,060(Total)Acquisition costs:
Accumulated depreciation:
Net book value:

2,301,199
786,525
1,514,673(Total)Acquisition costs:
2,292,596
Accumulated depreciation: 1,010,880
Net book value:
1,281,715(Total)Acquisition costs:
Accumulated depreciation:
Net book value:

2,289,741
887,8151,401,926(2) The pro forma amounts of unexpired
lease payments
Due in one year or less:
254,861
Due after one year:
1,308,504
Total
1,563,365(2) The pro forma amounts of unexpired
lease payments
Due in one year or less:
254,553
Due after one year:
1,068,218
Total
1,322,771(2) The pro forma amounts of unexpired
lease payments
Due in one year or less:
255,065
Due after one year:
1,190,377
Total
1,445,443(3) Lease payments and pro forma
depreciation of leased assets
Lease payments:
144,299
Depreciation:
126,266
Interest paid:
12,598(3) Lease payments and depreciation ofleased assets
Lease payments:
140,026
Depreciation:
125,093
Interest paid:
10,718(3) Lease payments and depreciation ofleased assets
Lease payments:
282,208
Depreciation:
250,431
Interest paid:
24,248(4) Methods of calculation of pro forma
depreciation
Depreciation of leased assets is
calculated on the basis of thestraight-line method assuming therespective lease terms as the usual
lives. As for the residual value, inthe case of agreements stipulating
the residual value assured, theresidual value concerned is adopted
and in any other cases, the residual
value is assumed at zero.

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

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

22

49,11043,211
5,899

First half ended Mar. 31, 2007
(5) Methods of calculation of interest
equivalent
The difference between the total
amount of the lease payments(excluding maintenance andadministration costs equivalent) andthe acquisition cost equivalent istreated as interest equivalent and theway of allocating the interest to therespective fiscal years applied is by
the interest method.

First half ended Mar. 31, 2008
(5) Methods of calculation of interest
Same as on the left.

Fiscal year ended Sep. 30, 2007
(5) Methods of calculation of interest
Same as on the left.

2. Operating lease transaction(Present value of future minimum lease
payments)
Due in one year or less:
24,000Due after one year:
83,980107,980

2. Operating lease transaction(Present value of future minimum
lease payments)
Due in one year or less:
90,792
Due after one year:
312,102402,894

2. Operating lease transaction(Present value of future minimum lease
payments)
Due in one year or less:
24,000Due after one year:
71,98095,980(Impairment loss on leased assets)
Not applicable.

(Impairment loss on leased assets)
Same as on the left.

(Impairment loss on leased assets)
Same as on the left.

(Notes Concerning Securities Holding)
1. Breakdown of marketable securities
As of Mar. 31, 2007

Stock
Debt
securities
Total(Thousands of yen)
As of Sep. 30, 2007

As of Mar. 31, 2008

Acquisition
cost

Value
booked36,954

68,627Net
unrealized
gain (loss)
31,672

99,98099,846

136,934

168,473

Acquisition
cost

Value
booked36,954

39,772Net
unrealized
gain (loss)
2,817

-133

99,980102,054

31,539136,934

141,827

36,954

47,126Net
unrealized
gain (loss)
10,172

2,074

99,98099,953-26

4,892

136,934

147,079

10,145Acquisitioncost

2. Breakdown of non-marketable securities
As of Mar. 31, 2007
Other securities
Money Management Fund
Commercial paperFree Financial Fund
Unlisted stock

As of Mar. 31, 2008

Value
booked(Thousands of yen)
As of Sep. 30, 2007
200,937
501,765
10,200201,375
502,719
10,200200,544499,608
500,842
10,200Note: In the event that the value of securities is estimated to decline 50% or more from the book value due to the deterioration of
the issuer’s financial conditions, the Company applies the impairment accounting method to the securities.

(Notes Concerning Derivative Transactions)

The Company did not have any derivative transactions.

(Notes Concerning Earnings on Investments in Equity-Method Affiliates)(Notes Concerning Stock Options)Not applicable.

(Notes to Business Combination Accounting)

Not applicable.

23

Not applicable.

(Per Share Data)First half ended Mar. 31, 2007
Net assets per share: 1,049.94 yen
Net income per share: 46.22 yen

First half ended Mar. 31, 2008
Net assets per share:
1,125.89 yen
Net income per share:
49.66 yen

Fiscal year ended Sep. 30, 2007
Net assets per share: 1,088.48 yen
Net income per share:
92.74 yen

Fully-diluted net income per share is
not presented because there are noresidual securities, such as convertible
bonds, issued by the Company.

Same as on the left.

Same as on the left.

(Note) The basis of calculating the above figures is as follows:

Net income for the (interim) fiscal year
Amount not applicable to ordinary stockholders
Net income applicable to ordinary stockholders
Average number of shares outstanding

First half ended
Mar. 31, 2007

First half ended
Mar. 31, 2008

(Thousands of yen)
Fiscal year ended
Sep. 30, 2007

594,805
594,805
12,869,990

639,062
639,062
12,869,990

1,193,579
1,193,579
12,869,990(Significant Subsequent Events)
There is no event to be reported.
V. Goods Manufactured, Orders Received and Sales(1) Breakdown of goods manufactured
Business segment
Diagnostic drugs
Hormone drugs
Circulatory drugs
Antibiotics & Chemotherapeutics
Urogenital & genital organ drugs
Dermatological preparation
Others
Total

First half ended
March 31, 2007
Amount(%)
42.7
2,561,270
28.3
1,696,292
8.8
526,946
5.6
337,190
2.7
163,520
2.7
158,5499.2
551,305
5,995,076
100.0First half ended
March 31, 2008
Amount(%)
42.0
2,589,721
29.5
1,819,187
10.4
642,5854.9
302,952
2.6
163,002
1.5
93,5349.1
561,206
6,172,191
100.0

YoY
ChangeAmount
28,451
122,894
115,638-34,237-517-65,015
9,900
177,114(Thousands of yen)
Fiscal year ended
September 30, 2007
Amount(%)
42.5
5,111,910
27.2
3,272,517
8.9
1,071,440
5.1
612,1312.7
327,496
2.6
314,99510.9
1,305,549
12,016,040
100.0(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.

(2) Breakdown of goods purchased
Business segment
In vitro diagnostics
Dermatological preparation
Hormone drugs
Antibiotics & Chemotherapeutics
Others
Total

First half ended
March 31, 2007
Amount(%)
66.7
199,124
10.6
31,682
3.8
11,40618.9
56,343
298,557
100.0

First half ended
March 31, 2008
Amount(%)
80.0
306,015
7.6
29,0104.4
16,847
0.9
3,499
7.1
26,924382,297
100.0

YoY
ChangeAmount106,890-2,672
5,441
3,499-29,419
83,740(Thousands of yen)
Fiscal year ended
September 30, 2007
Amount(%)
70.1
416,6899.1
54,163
3.5
20,50717.3
102,917594,277100.0(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.

24

(3) Manufacturing based on orders received
The Company manufactures products not on the build-to-order basis, but on the sales projection basis.

(4) Breakdown of sales(Thousands of yen)
Business segment
Goods manufactured
Diagnostic drugs
Hormone drugs
Circulatory drugs
Antibiotics & Chemotherapeutics
Urogenital drugs & genital organ drugs
Dermatological preparation
Others
Sub total
Goods purchased
In vitro diagnostic
Dermatologic preparation
Hormone drugs
Antibiotics & Chemotherapeutics
Others
Sub total
Total

First half ended
March 31, 2007
Amount(%)

First half ended
March 31, 2008
Amount(%)

YoY
ChangeAmountFiscal year ended
September 30, 2007
Amount(%)

2,498,019
1,613,262
557,253
307,834
148,313
143,308
666,977
5,934,969

39.0
25.2
8.7
4.8
2.3
2.2
10.4
92.6

2,515,400
1,779,277
591,197
306,184
148,126
106,706
725,366
6,172,259

36.8
26.0
8.6
4.5
2.2
1.6
10.6
90.2

17,380166,015
33,943-1,649-186-36,601
58,388237,290

5,215,300
3,327,059
1,132,669
624,702304,788296,200
1,399,638
12,300,359

39.4
25.1
8.5
4.7
2.3
2.2
10.6
92.8

322,380
48,99815,041
6,263
83,187475,8716,410,840

5.0
0.8
0.2
0.1
1.3
7.4
100.0

515,798
49,47016,9895,861
79,528667,646
6,839,906

7.5
0.7
0.2
0.1
1.2
9.8
100.0

193,417
472
1,947
-402
-3,659191,775
429,065

643,284
102,357
33,136
13,420157,963
950,160
13,250,520

4.9
0.8
0.2
0.1
1.2
7.2
100.0

(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.

(Information on major clients)
ClientKonica Minolta Medical &Graphic,
Inc.

First half ended
March 31, 2007
Amount(%)

First half ended
March 31, 2008
Amount(%)

YoY
ChangeAmount

1,707,173

1,667,561-39,612

26.6

25

24.4

(Thousands of yen, %)Fiscal year ended
September 30, 2007
Amount(%)
3,575,513

27.0