Non-consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending September 30, 2010
(Nine Months Ended June 30, 2010)[Japanese GAAP]
July 30, 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:
August 13, 2010
Scheduled start date of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: None
(All amounts are rounded down to the nearest million yen)

1. Financial Results for the Third Quarter (October 1, 2009 to June 30, 2010) of the Fiscal Year Ending
September 30, 2010
(Percentages represent year-on-year changes)(1) Operating results
Net sales

Operating income

Millions of yen

Nine months ended Jun. 30, 2010
Nine months ended Jun. 30, 2009%

14,722
12,071

Net income%

Millions of yen%

Millions of yen

%

2,483
1,548

60.3
-

2,491
1,561

59.6
-

1,485
921

61.2
-

22.0
-

Net income per share

Diluted net income
per share

Yen

Yen

Nine months ended Jun. 30, 2010
Nine months ended Jun. 30, 2009

Ordinary income

Millions of yen

115.46
71.63-(2) Financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

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

23,36522,862
Jun. 30, 2010:

17,377
16,221
17,37774.4
71.0
Sep. 30, 2009:

1,350.25
1,260.42
16,221

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

Total

Yen

Yen

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: Yes

-

11.00
13.00

-

13.00

24.00

16.00

29.00

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

Full year
19,71014.6
3,066 24.5
Note: Revision of earnings forecasts during the period: Yes

3,078

%

24.2

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

%

1,880

23.2

Yen

146.08

4. Others (Please refer to “Other Information” on page 4 of the attached documents for further information)(1) Application of simplified accounting methods and special accounting methods: Yes
Note: Application of simplified accounting methods and special accounting methods for presenting quarterly non-consolidated
financial statements(2) Changes in accounting principles, procedures, presentation methods, etc.
1) Changes caused by revision of accounting standards: None
2) Other changes: Yes
Note: Changes in accounting principles, procedures, presentation methods, etc. for presenting quarterly non-consolidated
financial statements described in “Changes in the Significant Accounting Policies for the Preparation of Quarterly
Non-consolidated Financial Statements”(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)Jun. 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

Jun. 30, 2010:10 shares

3) Average number of shares issued during the period
Nine months ended Jun. 30, 2010:

12,869,990 shares

Nine months ended Jun. 30, 2009:

12,869,990 shares* Information regarding the implementation of quarterly review procedures
The current quarterly non-consolidated financial statements are exempted from quarterly review procedures based on the Financial
Instruments and Exchange Law. At the time of disclosure, we have not completed the review process for these quarterly
non-consolidated financial statements.
* 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 performanceand the 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 Regarding Earnings Forecasts” on page 3 ofthe attached documents.

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

Contents of Attachments

1. Qualitative Information on Quarterly Non-consolidated Financial Performance2(1) Qualitative Information Regarding Operating Results2(2) Qualitative Information Regarding Financial Position

2(3) Qualitative Information Regarding Earnings Forecasts

3

2. Other Information

4(1) Overview of Application of Simplified Accounting Methods and Special Accounting Methods

4(2) Overview of Changes in Accounting Principles, Procedures, Presentation Methods, etc.

4

3. Quarterly Non-consolidated Financial Statements

5(1) Balance Sheets

5(2) Statements of Income

7(3) Statements of Cash Flows

8(4) Notes Regarding Assumptions for Company as Ongoing Concern

9(5) Notes Regarding Material Change in Shareholders’ Equity

9

4. Supplementary Information

9(1) Goods Manufactured, Orders Received and Sales

91

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

1. Qualitative Information on Quarterly Non-consolidated Financial Performance(1) Qualitative Information Regarding Operating Results
In the first three quarters of 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, the outlook for Japan’s recovery is becoming increasingly uncertain as the yen strengthens andstock prices fall rapidly in response to financial problems in Europe that began with the debt crisis in Greece.
In Japan’s ethical drug industry, there were revisions to the National Health Insurance (NHI) system in April 2010 thataltered the level of payments for medical services and lowered the prices of drugs by 5.75%. In addition, there was anadditional cut in drugs where patents have expired and generic versions are available. To increase the use of genericdrugs, 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 generic drugs. 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 EU andUnited States 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 22.0% to 14,722 million yen, operating income was up 60.3% to 2,483 million yen,ordinary income climbed 59.6% to 2,491 million yen and net income increased 61.2% to 1,485 million yen.
(2) Qualitative Information Regarding Financial Position
Assets, Liabilities and Net Assets
Total assets were 23,365 million yen at the end of the third quarter under review, an increase of 502 million yen fromthe end of the previous fiscal year. Net assets increased 1,156 million yen to 17,377 million yen, resulting in an equity
ratio of 74.4%.
Current assets increased 630 million yen mainly because cash and deposits and inventories, including merchandise andraw materials, increased. Noncurrent assets decreased 128 million yen, which was mainly the result of an increase inconstruction in progress due to start of construction of a fifth drug formulation line at the Toyama Plant, and a decreasein assets caused by depreciation.
Current liabilities decreased 672 million yen mainly because of a decline in notes and accounts payable-trade.
Noncurrent liabilities increased 18 million yen mainly because of an increase in the provision for retirement benefits.
Net assets increased 1,156 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 third quarter under review increased by 455 million
yen from the end of the previous fiscal year to 3,123 million yen.
The cash flow components during the first three quarters and the main reasons for changes are as described below.

2

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

i) Cash Flow from Operating Activities
Net cash provided by operating activities totaled 1,404 million yen (a 311 million yen increase over the same periodprevious fiscal year). This was the net result of adding 758 million yen in depreciation and amortization and an increasein accrued expenses of 285 million yen to the income before income taxes of 2,454 million yen, which was offset by a
514 million yen decrease in notes and accounts payable-trade, 444 million yen increase in inventories, income taxes
paid of 1,209 million yen, and other factors.
ii) Cash Flow from Investing Activities
Net cash used in investing activities was 616 million yen, compared with 1,044 million yen in the same period previous
fiscal year. Although there were proceeds from withdrawal of time deposits of 300 million yen, there were purchases ofproperty, plant and equipment of 802 million yen and other factors.
iii) Cash Flow from Financing Activities
Net cash used in financing activities was 332 million yen, compared with 268 million yen in the same period previous
fiscal year, due to cash dividends paid.
(3) Qualitative Information Regarding Earnings Forecasts
Net sales in the first three quarters were slightly higher than planned mainly because of strong sales of diagnostic drugs,
which is the Company’s main product. Net sales in the fourth quarter are expected to be generally in line with theoriginal plan. As a result, the Company has increased the fiscal year forecasts for net sales by 610 million yen, operating
income by 341 million yen, ordinary income by 338 million yen and net income by 200 million yen.
For the fiscal year, the revised forecasts are net sales of 19,710 million yen, operating income of 3,066 million yen,ordinary income of 3,078 million yen and net income of 1,880 million yen.
The table below shows the differences between the revised forecasts and the forecasts in the November 9, 2009 earnings
announcement.
(Full year)
Net income pershare

Net sales

OperatingincomeOrdinary
incomeNet income

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (A)19,100

2,725

2,740

1,680

130.54

Revised forecasts (B)19,710

3,066

3,078

1,880

146.08

610

341

338

200

-

Change (B - A)
Change %Previous fiscal year results

3.2

12.5

12.3

11.9

-

17,198

2,462

2,477

1,525

118.573

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

2. Other Information(1) Overview of the Application of Simplified Accounting Methods and Special Accounting Methods
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 third 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 third quarter of the current fiscal year, the valuation was determined by using areasonable method based on actual inventories at the end of the second quarter. Physical inventory counts were omitted.
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) Overview of Changes in Accounting Principles, Procedures, Presentation Methods, etc.
(Statements of Income)“Commission fee,” included in “Other” under non-operating income in the third quarter of the previous fiscal year, isreclassified and presented as a separate line item in the third quarter of the current fiscal year, given that it now exceeds
20/100 of total non-operating income. “Commission fee” included in “Other” under non-operating income totaled 102
thousand yen in the third quarter of the previous fiscal year.
“Fiduciary obligation fee,” presented under non-operating income in the third quarter of the previous fiscal year, isreclassified and included in “Other” in the third quarter of the current fiscal year. “Fiduciary obligation fee” included in“Other” under non-operating income totaled 106 thousand yen in the third quarter of the current fiscal year.

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

3. Quarterly Non-consolidated Financial Statements(1) Balance Sheets
Third quarter of FY9/10(As of Jun. 30, 2010)(Thousands of yen)
FY9/09 summary(As of Sep. 30, 2009)

AssetsCurrent assets
Cash and deposits

2,618,452

2,161,361

Notes and accounts receivable-trade7,575,622

7,528,843

Short-term investment securities

504,817706,832

Merchandise and finished goods

1,766,185

1,415,259

764,210

844,773

1,842,796

1,668,493

659,431775,718

Work in process
Raw materials and supplies
Other(2,272)(2,258)15,729,243

15,099,024

Buildings, net

2,726,231

2,695,263

Other, net

2,637,141

2,235,163

Total property, plant and equipment

5,363,373

4,930,427

1,157,751

1,323,861

Investments and other assets

1,114,820

1,509,656

Total noncurrent assets

7,635,945

7,763,945

23,365,188

22,862,969

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

Intangible assets

Total assets
Liabilities
Current liabilities

3,030,390

3,544,880

Income taxes payable

361,575

695,739

Provision for bonuses

550,940

651,870

Provision for directors’ bonuses

23,00014,100Notes and accounts payable-trade

11,245

14,374

Other

1,202,611

931,385

Total current liabilities

5,179,763

5,852,351

Provision for retirement benefits

542,986

517,749

Other

264,679

271,272

Total noncurrent liabilities

807,665

789,022

5,987,429

6,641,373

Provision for sales returns

Noncurrent liabilities

Total liabilities

5Fuji Pharma Co., Ltd. (4554) Financial Results for the Third Quarter of FY9/10(Thousands of yen)
FY9/09 summary(As of Sep. 30, 2009)

Third quarter of FY9/10(As of Jun. 30, 2010)
Net assets
Shareholders’ equity
Capital stock

1,616,950

1,616,950

Capital surplus

2,841,587

2,841,587

Retained earnings

12,919,745

11,768,381

(7)

(7)

17,378,275

16,226,911(515)(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

(515)

(5,315)

17,377,759

16,221,596

23,365,188

22,862,969

Fuji Pharma Co., Ltd. (4554) Financial Results for the Third Quarter of FY9/10(2) Statements of Income(For the Nine-month period)

Net salesFirst nine months of FY9/09(Oct. 1, 2008 – Jun. 30, 2009)(Thousands of yen)First nine months of FY9/10(Oct. 1, 2009 – Jun. 30, 2010)

12,071,084

14,722,475

Cost of sales

6,687,730

7,988,848

Gross profit

5,383,354

6,733,627

Selling, general and administrative expenses

3,834,541

4,250,167

Operating income

1,548,812

2,483,459

Interest income

3,961

1,964

Dividends income

402

402

Non-operating income

Commission fee

-

2,610

Fiduciary obligation fee

4,338

-

Other

6,575

6,669

Total non-operating income

15,277

11,646

Non-operating expenses
Interest expenses

469

145

Sales discounts

1,946

2,762

Depreciation

296

233

Other

370

434

3,083

3,576

1,561,005

2,491,529

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on prior period adjustment

14,128--40,322

14,12840,322

Loss on retirement of noncurrent assets

1,896

66,040Loss on valuation of inventories

54,337--

11,012

6,606-

Contribution from co-development project
Total extraordinary income
Extraordinary loss

Loss on valuation of investment securities
Other
Total extraordinary losses

62,84077,053

Income before income taxes

1,512,293

2,454,798

Income taxes-current

520,242888,535

Income taxes-deferred

70,16680,279Total income taxes

590,408

968,814

Net income

921,885

1,485,983

7

Fuji Pharma Co., Ltd. (4554) Financial Results for the Third Quarter of FY9/10(3) Statements of Cash FlowsFirst nine months of FY9/09(Oct. 1, 2008 – Jun. 30, 2009)(Thousands of yen)First nine months of FY9/10(Oct. 1, 2009 – Jun. 30, 2010)

Income before income taxes

1,512,293

2,454,798

Depreciation and amortization

690,483

758,882

Increase (decrease) in provision for retirement benefits

43,42325,237

Increase (decrease) in allowance for doubtful accounts

71

14(190,733)(100,930)

Net cash provided by (used in) operating activities

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses(1,900)8,900

Increase (decrease) in provision for sales returns

1,516(3,129)Interest and dividends income(4,363)(2,366)

Loss on retirement of noncurrent assets

1,896

66,040Loss (gain) on valuation of investment securities-

11,012

Decrease (increase) in notes and accounts receivable-trade(239,970)(46,779)

Decrease (increase) in inventories(577,697)(444,666)

Decrease (increase) in advance payments(18,052)

18,242

Decrease (increase) in accounts receivable-other

82,4809,757

Decrease (increase) in prepaid expenses

16,818(5,457)

Decrease (increase) in long-term prepaid expenses(43,497)

92,832

Increase (decrease) in notes and accounts payable-trade206,532(514,489)

Increase (decrease) in accounts payable-other

179,430(2,335)

Increase (decrease) in long-term accounts payable-other(1,629)(4,135)

Increase (decrease) in accrued expenses

165,653285,851

Increase (decrease) in accrued consumption taxes

19,235

18,229Other(6,727)(11,908)

Subtotal

1,835,262

2,613,599

Interest and dividends income received

4,384

2,323

Interest expenses paid

(2,373)(2,731)

Income taxes paid

(739,081)(1,209,008)

Other payments(6,000)-1,092,192

1,404,183

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits(100,000)-

Proceeds from withdrawal of time deposits-

300,000

Purchase of property, plant and equipment(600,078)(802,630)

Payments for retirement of property, plant and equipment
Purchase of intangible assets
Proceeds from collection of guarantee deposits-(21,380)(343,000)(111,381)-

20,000(934)(1,284)(1,044,013)(616,676)

Cash dividends paid

(268,487)(332,432)

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(268,487)(332,432)

Net increase (decrease) in cash and cash equivalents(220,308)

455,074

Cash and cash equivalents at beginning of period

2,981,152

2,668,194

Cash and cash equivalents at end of period

2,760,843

3,123,269

8

Fuji Pharma Co., Ltd. (4554) Financial Results for the Third 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.

4. Supplementary Information(1) Goods Manufactured, Orders Received and Sales
1) Breakdown of goods manufactured(Thousands of yen)First nine months of FY9/09(Oct. 1, 2008 – Jun. 30, 2009)
AmountFirst nine months of FY9/10(Oct. 1, 2009 – Jun. 30, 2010)%

AmountYoY change (%)%

Diagnostic drugs

5,097,597

43.8

6,731,389

51.1

32.1

Hormone drugs

3,058,415

26.3

3,079,955

23.4

0.7

914,5187.9

757,169

5.8(17.2)

622,8515.3

448,198

3.4(28.0)

246,8442.1

346,0852.6

40.2

181,273

1.6

197,459

1.5

8.9

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

1,516,283

13.0

1,603,523

12.2

5.8

11,637,784

100.0

13,163,781

100.0

13.1

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 of the current fiscal year, some dermatological preparations were reclassified from goods purchased to goods
manufactured. Figures for the first nine months of the previous fiscal year have been revised accordingly.

2) Breakdown of goods purchased(Thousands of yen)First nine months of FY9/09(Oct. 1, 2008 – Jun. 30, 2009)
AmountFirst nine months of FY9/10(Oct. 1, 2009 – Jun. 30, 2010)%

AmountYoY change (%)%

In vitro diagnostics

464,172

69.3

636,766

48.6

37.2

Hormone drugs
Antibiotics &Chemotherapeutics
Dermatological preparations

114,447

17.1

584,335

44.6

410.6

2,534

0.4

3,747

0.3

47.8

3,140

0.5

-

-

-

Other

85,28012.7

85,0496.5(0.3)

669,576100.0

1,309,898

100.0

95.6

Total

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

3) Orders received
Not applicable since the Company manufactures products on a sales projection basis.

9

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

4) Breakdown of sales(Thousands of yen)First nine months of FY9/09(Oct. 1, 2008 – Jun. 30, 2009)First nine months of FY9/10(Oct. 1, 2009 – Jun. 30, 2010)

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

4,887,368

40.5

6,389,821

43.4

30.7

Hormone drugs

2,827,546

23.4

3,007,580

20.5

6.4

Circulatory drugs

884,3147.3

885,632

6.0

0.1

Antibiotics & Chemotherapeutics

456,698

3.8

504,354

3.4

10.4

Urogenital & genital organ drugs

266,5382.2

283,247

1.9

6.3

Dermatological preparations

205,9451.7

210,5621.4

2.2

1,156,735

9.6

1,534,959

10.4

32.7

10,685,148

88.5

12,816,158

87.0

19.9

Other
Subtotal(Goods purchased)
Hormone drugs

500,4314.2

923,191

6.3

84.5

In vitro diagnostics

727,033

6.0

839,071

5.7

15.4

Antibiotics & Chemotherapeutics

7,234

0.1

6,053

0.1

(16.3)

Dermatological preparations

3,070

0.0

2,843

0.0

(7.4)

148,165

1.2

135,156

0.9

(8.8)

Other
Subtotal

1,385,936

11.5

1,906,317

13.0

37.5

Total

12,071,084

100.0

14,722,475

100.0

22.0

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 of the current fiscal year, some dermatological preparations were reclassified from goods purchased to goods
manufactured. Figures for the first nine months 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