Non-consolidated Financial Results
for the First Quarter of the Fiscal Year Ending September 30, 2010
(Three Months Ended December 31, 2009)
January 29, 2010

Company name: Fuji Pharma Co., Ltd.
Stock Exchange Listing: 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 submission date of quarterly report:
February 15, 2010
Scheduled start date of dividend:(All amounts are rounded down to the nearest million yen)

1. Financial Results for the First Quarter (October 1, 2009 to December 31, 2009) of the Fiscal Year Ending
September 30, 2010
(Percentages represent year-on-year changes)(1) Operating results
Net sales
Three months ended Dec. 31, 2009
Three months ended Dec. 31, 2008

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

5,224
3,908

33.7
-

943
545

73.0
-

946
547

72.7
-

570
285

99.8
-

Net income per share

Diluted net income
per share

Yen

Yen

Three months ended Dec. 31, 2009
Three months ended Dec. 31, 2008

44.33
22.19

-

(2) Financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Three months ended Dec. 31, 2009
22,432
Fiscal year ended Sep. 30, 2009
22,862
Reference: Shareholders’ equity (millions of yen)

16,622
16,221
Dec. 31, 2009: 16,622

74.1
71.0
Sep. 30, 2009:

1,291.60
1,260.42
16,221

2. Dividends
1Q-end2Q-endDividend per share
3Q-end

Yen

Yen

Yen

Fiscal year ended Sep. 30, 2009
Fiscal year ending Sep. 30, 2010
Fiscal year ending Sep. 30, 2010 (Estimated)
Note: Revision of dividend forecast during the period: None-

Yearend

Total

Yen

Yen

11.00

-

13.00

24.00

13.00

-

13.00

26.00

3. Forecast for the Fiscal Year Ending September 30, 2010 (October 1, 2009 to September 30, 2010)
Net sales
Millions of yen

Operating income%

Millions of yen

Ordinary income%

Millions of yen

First half
9,360
23.5
1,380 46.3
Full year
19,10011.1
2,725 10.7
Note: Revision of earnings forecasts during the period: None

1,380
2,740

1

%

44.8
10.6

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

%

840
1,680

53.5
10.1

Yen

65.27
130.54

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10

4. Supplementary Information(1) Application of simplified accounting methods and special accounting methods in the preparation of quarterly
financial statements: Yes
Note: Please refer to “Qualitative Information and Financial Statements, 4. Others” on page 4 for further information.

(2) Changes in accounting principles, procedures and presentation methods for preparation of quarterly financial
statements
1) Changes caused by revision of accounting standards: None
2) Other changes: Yes
Note: Please refer to “Qualitative Information and Financial Statements, 4. Others” on page 4 for further information.

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

Dec. 31, 2009:

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

Dec. 31, 2009:10 shares

3) Average number of shares issued during the period
Three months ended Dec. 31, 2009:

12,869,990 shares

Three months ended Dec. 31, 2008:

12,869,990 shares* 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 “Qualitative Information and Financial Statements, 3. Qualitative
Information Regarding Earnings Forecasts” on page 4.

2

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10

Qualitative Information and Financial Statements
1. Qualitative Information Regarding Operating Results
In the first quarter of the current fiscal year, there were some positive signs in the Japanese economy thanks to thegovernment’s economic stimulus measures and the progressive reduction of inventories. However, there still remains arisk of further economic weakness because of worsening deflation and the yen’s rapid appreciation.
In Japan’s ethical drug industry, National Health Insurance (NHI) drug prices are expected to be cut by 5.75% in fiscal
2010 and additional price cuts are foreseen for drugs where patents have expired and generic versions are available. To
increase the use of generic drugs, the Japanese government is considering making additional payments to dispensing
pharmacies depending on the percentage of generic drug sales. This indicates that the government will work evenharder on promoting the use of generic drugs. On the other hand, competition is becoming even more intense as
Japanese and foreign pioneer drug manufacturers, major overseas generic drug manufacturers and other companies
enter the generic drug market.
Under such circumstances, 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 the 1,283 hospitals that are
subject to DPC (Diagnosis Procedure Combination).
As a result, net sales increased 33.7% to 5,224 million yen, operating income was up 73.0% to 943 million yen,ordinary income climbed 72.7% to 946 million yen and net income increased 99.8% to 570 million yen.

2. Qualitative Information Regarding Financial Position
Assets, Liabilities and Net Assets
Total assets were 22,432 million yen at the end of the first quarter under review, a decrease of 430 million yen from theend of the previous fiscal year. Net assets increased 401 million yen to 16,622 million yen, resulting in an equity ratioof 74.1%.
Current assets decreased 387 million yen as cash and deposits decreased while notes and accounts receivable-trade
increased. Noncurrent assets decreased 43 million yen despite the completion of the new office building at the Toyama
Plant due to a significant amount of depreciation.
Liabilities decreased 841 million yen as income taxes payable decreased due to payments of income taxes and as theprovision for bonuses decreased because bonuses were paid. Noncurrent liabilities increased 9 million yen mainly
because of an increase in the provision for retirement benefits.
Net assets increased 401 million yen because, in retained earnings, quarterly net income more than offset a decrease
from dividend payments.
Cash Flows
Cash and cash equivalents (hereinafter, “Cash”) as of the end of the first quarter under review decreased by 803 million
yen year on year to 1,753 million yen.
The cash flow components as of the end of the first quarter and the main reasons for changes are as described below.
(i) Cash Flow from Operating Activities
Net cash used in operating activities totaled 668 million yen, compared with 163 million yen in the same periodprevious fiscal year. This was the net result of adding 232 million yen in depreciation and amortization to the income
before income taxes of 942 million yen, which was offset by an 840 million yen increase in notes and accounts
receivable-trade, income taxes paid of 671 million yen, a 368 million yen decrease in provision for bonuses, and otherfactors.

3

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10(ii) Cash Flow from Investing Activities
Net cash used in investing activities was 85 million yen, compared with 136 million yen in the same period previous
fiscal year. Although there were proceeds from withdrawal of time deposits of 100 million yen, there were purchases ofproperty, plant and equipment of 149 million yen and other factors.
(iii) Cash Flow from Financing Activities
Net cash used in financing activities was 160 million yen, compared with 123 million yen in the same period previous
fiscal year, due to cash dividends paid.

3. Qualitative Information Regarding Earnings Forecasts
The Company maintains the forecast for the fiscal year ending September 30, 2010 as announced on November 9, 2009,
because the first-quarter results are generally trending in line with plans.

4. Others(1) Application of simplified accounting methods and special accounting methods in the preparation of quarterly
financial statements
1. Simplified accounting methods(i) Method for estimating the uncollectible amount of general receivables
The uncollectible amount of general receivables was estimated using the historical write-off ratio at the end of theprevious fiscal year as the ratio at the end of the first quarter of the current fiscal year was found not to be significantly
different from the ratio at the end of the previous fiscal year.
(ii) Valuation of inventories
For inventories at the end of the first quarter of the current fiscal year, the valuation was determined by using areasonable method based on actual inventories at the end of the previous fiscal year. Physical inventory counts wereomitted. Inventory write-down is based on the current net sales value of items for which profit margins have declined
significantly.
(iii) Depreciation method for noncurrent assets
For assets subject to the declining balance method, depreciation was calculated pro rata based on the amount for the
fiscal year.
2. Special accounting methods in the preparation of quarterly financial statements
Not applicable.
(2) Changes in accounting principles, procedures and presentation methods for preparation of quarterly financial
statements(Statements of Income)In the first quarter of the current fiscal year, “Sales discounts,” included in “Other” under non-operating expenses in theprevious fiscal year, is reclassified and presented as a separate line item, given that it now exceeds 20/100 of total
non-operating expenses. “Sales discounts” included in “Other” under non-operating expenses totaled 51 thousand yen in
the first quarter of the previous fiscal year.

4Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10

5. Quarterly Non-consolidated Financial Statements(1) Balance Sheets
First quarter of FY9/10(As of Dec. 31, 2009)(Thousands of yen)
FY9/09 summary(As of Sep. 30, 2009)

AssetsCurrent assets
Cash and deposits

1,349,056

2,161,361

Notes and accounts receivable-trade

8,368,898

7,528,843

Short-term investment securities

504,632

706,832

Merchandise and finished goods

1,500,627

1,415,259

751,685

844,773

1,696,688

1,668,493

542,578775,718

Work in process
Raw materials and supplies
Other(2,509)(2,258)14,711,658

15,099,024

Buildings, net

2,880,734

2,695,263

Other, net

2,100,121

2,235,163

Total property, plant and equipment

4,980,855

4,930,427

Intangible assets

1,277,346

1,323,861

Investments and other assets

1,462,336

1,509,656

Total noncurrent assets

7,720,539

7,763,945

22,432,197

22,862,969

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Total assets
Liabilities
Current liabilities

3,456,787

3,544,880

Income taxes payable

181,339695,739

Provision for bonuses

283,400

651,870

9,400

14,100Notes and accounts payable-trade

Provision for directors’ bonuses

9,574

14,374

Other

1,070,656

931,385

Total current liabilities

5,011,159

5,852,351

Provision for retirement benefits

525,474

517,749

Other272,635

271,272

Total noncurrent liabilities

798,109789,0225,809,268

6,641,373

Provision for sales returns

Noncurrent liabilities

Total liabilities

5Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10(Thousands of yen)
FY9/09 summary(As of Sep. 30, 2009)First quarter of FY9/10(As of Dec. 31, 2009)
Net assets
Shareholders’ equity
Capital stock

1,616,950

1,616,950

Capital surplus

2,841,587

2,841,587

Retained earnings

12,171,600

11,768,381

(7)

(7)

16,630,130

16,226,911(7,201)(5,315)

Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

6(7,201)(5,315)

16,622,928

16,221,596

22,432,197

22,862,969

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10(2) Statements of Income(For the Three-month period)First three months of FY9/09(Oct. 1, 2008 – Dec. 31, 2008)
Net sales

3,908,148(Thousands of yen)First three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)
5,224,111

Cost of sales

2,164,415

2,857,438

Gross profit

1,743,732

2,366,673

Selling, general and administrative expenses

1,198,703

1,423,606

545,028

943,067Interest income

1,409

842

Dividends income

161

138

Operating income
Non-operating income

Other

1,849

2,386

Total non-operating income

3,419

3,367

Non-operating expenses
Interest expenses

157

49

Depreciation

112

60

Sales discounts

-

55

Other

187

-

Total non-operating expenses

458

165

547,990946,268

Loss on retirement of noncurrent assets

1,116

3,982

Loss on valuation of inventories

54,337

-

Other

6,000

-

Ordinary income
Extraordinary loss

Total extraordinary losses

61,454

3,982

Income before income taxes

486,535

942,286

Income taxes-current

33,124

172,817

Income taxes-deferred

167,858

198,939

Total income taxes

200,982371,757

Net income

285,553

570,528

7

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10(3) Statements of Cash FlowsFirst three months of FY9/09(Oct. 1, 2008 – Dec. 31, 2008)(Thousands of yen)First three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)

Income before income taxes

486,535

942,286

Depreciation and amortization

217,969

232,886

Increase (decrease) in provision for retirement benefits

15,240

7,724

Increase (decrease) in allowance for doubtful accounts

37

250

Increase (decrease) in provision for bonuses(361,479)(368,469)

Increase (decrease) in provision for directors’ bonuses(10,600)(4,700)

Increase (decrease) in provision for sales returns

2,852(4,800)Interest and dividends income(1,570)(784)

Net cash provided by (used in) operating activities

Loss on retirement of noncurrent assets

1,116

3,982

Decrease (increase) in notes and accounts receivable-trade(123,720)(840,054)

Decrease (increase) in inventories(315,583)(20,476)

Decrease (increase) in advance payments(32,103)(26,708)

Decrease (increase) in accounts receivable-other

21,82068,859Decrease (increase) in prepaid expenses

9,018(11,995)

Decrease (increase) in long-term prepaid expenses

26,54730,580

Increase (decrease) in notes and accounts payable-trade78,035(88,092)

Increase (decrease) in accounts payable-other

5,031(67,701)

Increase (decrease) in long-term accounts payable-other

3,108

42

Increase (decrease) in accrued expenses

16,70039,475

Increase (decrease) in accrued consumption taxes

32,568(3,113)

Other

114,002

113,839

Subtotal

185,5293,033

Interest and dividends income received

1,752

495

Interest expenses paid

(51)

(810)

Income taxes paid

(344,693)(671,001)

Other payments(6,000)-(163,463)(668,283)

Proceeds from withdrawal of time deposits-

100,000

Purchase of property, plant and equipment(112,324)(149,740)

Purchase of intangible assets(24,408)(55,109)

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities

Proceeds from collection of guarantee deposits-

20,000

(78)

(428)

(136,811)(85,277)

Cash dividends paid

(123,377)(160,944)

Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net cash provided by (used in) financing activities(123,377)(160,944)

Net increase (decrease) in cash and cash equivalents(423,652)(914,505)

Cash and cash equivalents at beginning of period

2,981,152

2,668,194

Cash and cash equivalents at end of period

2,557,500

1,753,689

8

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10(4) Notes Regarding Assumptions for Company as Ongoing Concern
Not applicable.

(5) Notes Regarding Material Change in Shareholders’ Equity
Not applicable.

6. Other Information
Goods Manufactured, Orders Received and Sales(1) Breakdown of goods manufactured(Thousands of yen)First three months of FY9/09(Oct. 1, 2008 – Dec. 31, 2008)
AmountFirst three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)%

AmountYoY change (%)%

Diagnostic drugs

1,629,183

43.8

2,478,207

52.7

52.1

Hormone drugs

1,016,135

27.3

1,062,598

22.6

4.6

260,492

7.0

177,5303.8(31.8)

207,377

5.6

147,752

3.1(28.8)

102,160

2.8

138,774

3.0

35.8

64,914

1.7

57,996

1.2(10.7)

Circulatory drugs
Antibiotics &Chemotherapeutics
Urogenital & genital organ
drugs
Dermatological preparations
Other
Total

438,653

11.8

638,426

13.6

45.5

3,718,917

100.0

4,701,286

100.0

26.4

Notes: 1. The above amounts are calculated based on selling prices and do not include consumption tax.
2. Fractions less than one thousand yen are omitted.
3. In the first quarter, some dermatological preparations were reclassified from goods purchased to goods manufactured. Figures
for the first quarter of the previous fiscal year have been revised accordingly.

(2) Breakdown of goods purchased(Thousands of yen)First three months of FY9/09(Oct. 1, 2008 – Dec. 31, 2008)
AmountIn vitro diagnostics

First three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)%

Amount153,043

YoY change (%)

%

80.6

305,529

59.0

99.6

Hormone drugs

8,648

4.5

190,67736.8

2,104.7

Dermatological preparations

3,141

1.7

-

-

-

Antibiotics &Chemotherapeutics

2,534

1.3

-

-

-

Other

22,58911.9

21,8344.2(3.3)

189,958

100.0

518,040

100.0

172.7

Total

Notes: 1. The above amounts are calculated based on selling prices and do not include consumption tax.
2. Fractions less than one thousand yen are omitted.
3. In the first quarter, some dermatological preparations were reclassified from goods purchased to goods manufactured. Figures
for the first quarter of the previous fiscal year have been revised accordingly.
4. The large year-on-year change in hormone drugs purchased is due to an increase in purchases of sex hormone drugs.

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

9

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/10(4) Breakdown of sales(Thousands of yen)First three months of FY9/09(Oct. 1, 2008 – Dec. 31, 2008)

First three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)

AmountAmount%YoY change (%)%(Goods manufactured)
Diagnostic drugs

1,598,817

40.9

2,252,226

43.1

40.9

Hormone drugs

963,83724.7

1,061,591

20.3

10.1

Circulatory drugs

267,972

6.8

326,915

6.3

22.0

Antibiotics & Chemotherapeutics

159,3074.1

178,482

3.4

12.0

Urogenital & genital organ drugs

96,095

2.5

97,9291.9

1.9

Dermatological preparations

71,363

1.8

73,869

1.4

3.5

Other

375,157

9.6

526,726

10.1

40.4

3,532,553

90.4

4,517,741

86.5

27.9

In vitro diagnostics

197,8625.1

461,426

8.8

133.2

Hormone drugs

122,865

3.1

191,650

3.7

56.0

Antibiotics & Chemotherapeutics

2,439

0.1

2,302

0.0

(5.6)

Dermatological preparations

1,161

0.0

1,061

0.0

(8.6)

Other

51,265

1.3

49,9281.0(2.6)

Subtotal(Goods purchased)

Subtotal

375,595

9.6

706,369

13.5

88.1

Total

3,908,148

100.0

5,224,111

100.0

33.7

Notes: 1. The above amounts are calculated based on selling prices and do not include consumption tax.
2. Fractions less than one thousand yen are omitted.
3. In the first quarter, some dermatological preparations were reclassified from goods purchased to goods manufactured. Figures
for the first quarter of the previous fiscal year have been revised accordingly.

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

10