Non-consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending September 30, 2011
(Six Months Ended March 31, 2011)[Japanese GAAP]
April 28, 2011

Company name: Fuji Pharma Co., Ltd.
Stock Exchange Listing: Osaka Securities Exchange (JQ)
Stock code:4554 (URL: http://www.fujipharma.jp)
Representative: Hirofumi Imai, President & CEO
Contact:
Toyoyuki Kamide, Director and General Manager of Administration Department
TEL: +81-(0)3-3556-3344
Scheduled submission date of quarterly report:
May 13, 2011
Scheduled start date of dividend:
June 1, 2011
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: Yes (for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Financial Results for the Second Quarter (October 1, 2010 to March 31, 2011) of the Fiscal Year Ending
September 30, 2011
(1) Operating results(Percentages represent year-on-year changes)
Net sales
Six months ended Mar. 31, 2011
Six months ended Mar. 31, 2010

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

10,745
9,567

12.3
26.2

1,684
1,610

4.6
70.7

1,686
1,614

4.5
69.4

1,039
971

7.1
77.5

Net income per
share

Diluted net income
per share

Yen

Yen

Six months ended Mar. 31, 2011
Six months ended Mar. 31, 2010

80.80
75.46

-

(2) Financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Six months ended Mar. 31, 2011
Fiscal year ended Sep. 30, 2010
Reference: Shareholders’ equity (millions of yen)

26,431
24,72318,658
17,833Mar. 31, 2011: 18,658

70.6
72.1
Sep. 30, 2010:

1,449.76
1,385.65
17,833

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Sep. 30, 2010
Fiscal year ending Sep. 30, 2011
Fiscal year ending Sep. 30, 2011
(Estimated)
Note: Revision of dividend forecast during the period: None

13.00
17.00

-

17.00

30.00

-

17.00

34.00

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

Operating income%

Millions of yen%

Full year
22,457 14.0
3,476
7.5
Note: Revision of earnings forecasts during the period: None

Ordinary income
Millions of yen

3,471

%

7.0

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

2,141

%

10.1

Yen

166.36

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: Yes
2) Other changes: None
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)

Mar. 31, 2011:

12,870,000 sharesSep. 30, 2010:

12,870,000 sharesSep. 30, 2010:10 shares

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

Mar. 31, 2011:10 shares

3) Average number of shares issued during the period
Six months ended Mar. 31, 2011:

12,869,990 shares

Six months ended Mar. 31, 2010:

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.

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 Second Quarter of FY9/11

1. Qualitative Information on Quarterly Non-consolidated Financial Performance(1) Qualitative Information Regarding Operating Results
There was growth in corporate earnings in the first half of the current fiscal year, mainly at exporters because of strong
demand in emerging countries. However, it is impossible to determine an outlook for the economy due to thedevastating impact of the Great East Japan Earthquake that occurred on March 11, 2011.
In Japan’s ethical drug industry, the government is continuing to work on promoting the use of generic drugs.
Competition in the generic drug market is becoming even more intense as Japanese pioneer drug manufacturers, major
overseas generic drug manufacturers and other companies enter this 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. A new factory for injection agents, which the Company started constructing in March
2010, is expected to begin operating in the fall of 2011 as scheduled.
In December 2010, the new drug “LUNABELL tablets” received an additional indication for the treatment of functional
dysmenorrhea. The Company remains committed to making an even greater contribution to improving the quality of lifeof the many women who have menstrual pain.
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 and functional dysmenorrhea) 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 that are subject to DPC (Diagnosis Procedure Combination).
R&D expenses increased 53.6% from one year earlier to 768 million yen, primarily for the development of G-CSF.
Despite this increase, R&D expenses were less than initially planned.
As a result, net sales increased 12.3% to 10,745 million yen. Operating income was up 4.6% to 1,684 million yen,ordinary income climbed 4.5% to 1,686 million yen and net income increased 7.1% to 1,039 million yen.
(2) Qualitative Information Regarding Financial Position
Assets, Liabilities and Net Assets
Total assets were 26,431 million yen at the end of the second quarter under review, an increase of 1,707 million yen
from the end of the previous fiscal year. Net assets increased 825 million yen to 18,658 million yen, resulting in an
equity ratio of 70.6%.
Current assets increased 391 million yen mainly because accounts receivable-trade increased. Noncurrent assets
increased 1,316 million yen, which was mainly the result of an increase in construction in progress.
Current liabilities increased 860 million yen. This was mainly the result of a decrease in notes and accounts
payable-trade and an increase in current portion of long-term loans payable. Noncurrent liabilities increased 22 million
yen mainly because of an increase in provision for retirement benefits.
Net assets increased 825 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 second quarter under review decreased by 466
million yen year on year to 2,918 million yen.
The cash flow components during the second quarter and the main reasons for changes are as described below.
i) Cash Flow from Operating Activities
Net cash provided by operating activities totaled 450 million yen (a 962 million yen decrease over the same period
2

Fuji Pharma Co., Ltd. (4554) Financial Results for the Second Quarter of FY9/11

previous fiscal year). This include outflows of income taxes paid of 784 million yen, 623 million yen increase innotes and accounts receivable-trade, and a 255 million yen decrease in provision for bonuses, and inflows of 454
million yen of depreciation and amortization and 215 million yen increase in accounts payable-other.
ii) Cash Flow from Investing Activities
Net cash used in investing activities was 1,811 million yen (a 1,282 million yen increase over the same periodprevious fiscal year), due to purchase of property, plant and equipment of 1,678 million yen and other factors.
iii) Cash Flow from Financing Activities
Net cash provided by financing activities was 1,181 million yen, compared with 167 million yen used in the same
period previous fiscal year. Although there were cash dividends paid of 218 million yen, there were an increase inlong-term loans payable of 1,300 million yen and other factors.
(3) Qualitative Information Regarding Earnings Forecasts
Earnings in the first half of the fiscal year were higher than planned. However, this was mainly because some R&D
expenses that were to be recorded in the first half are expected to be recorded instead in the third quarter or afterward.
As a result, there are no changes to the forecast for the fiscal year ending September 30, 2011 that was announced on
November 9, 2010.

3

Fuji Pharma Co., Ltd. (4554) Financial Results for the Second Quarter of FY9/11

2. Other Information(1) Overview of Application of Simplified Accounting Methods and Special Accounting Methods
1. Simplified accounting methodsi) 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 second quarter of the current fiscal year was found not to besignificantly different from the ratio at the end of the previous fiscal year.
ii) Valuation of inventories
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.
1. Accounting standard for asset retirement obligations
Beginning with the first quarter of the current fiscal year, “Accounting Standard for Asset Retirement Obligations”(Accounting Standards Board of Japan (ASBJ) Statement No. 18, March 31, 2008) and “Guidance on AccountingStandard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) have been applied.
The effect of this change was to decrease operating income and ordinary income by 367 thousand yen each and income
before income taxes by 1,487 thousand yen.
2. Reclassifications(Statements of Income)“Construction in progress,” included in “Other” under property, plant and equipment in the second quarter of theprevious fiscal year, is reclassified and presented as a separate line item in the second quarter of the current fiscal year,
given that it now exceeds 10/100 of total assets. “Construction in progress” included in “Other” under property, plantand equipment totaled 796,084 thousand yen in the second quarter of the previous fiscal year.

4Fuji Pharma Co., Ltd. (4554) Financial Results for the Second Quarter of FY9/11

3. Quarterly Non-consolidated Financial Statements(1) Balance Sheets
Second quarter of FY9/11(As of Mar. 31, 2011)(Thousands of yen)
FY9/10 summary(As of Sep. 30, 2010)

AssetsCurrent assets
Cash and deposits

2,413,510

2,592,763

Notes and accounts receivable-trade

8,310,380

7,686,941

Short-term investment securities

505,088504,910Merchandise and finished goods

1,728,848

1,728,477

Work in process

960,476

810,705

2,237,181

2,336,230

Other

827,184

931,321

Allowance for doubtful accounts(2,758)(2,557)

16,979,913

16,588,793

Buildings, net

2,578,904

2,665,525

Construction in progress

3,118,998

1,559,484

Other, net

1,551,183

1,676,304

Total property, plant and equipment

7,249,086

5,901,313

1,116,031

1,141,459

1,093,908

1,100,067(7,673)(7,673)

Raw materials and supplies

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

1,086,234

1,092,394

9,451,352

8,135,166

26,431,265

24,723,959

3,201,702

3,330,934

100,000-

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable

1,300,000-

Income taxes payable

515,200

804,082

Provision for bonuses

553,082

808,722

Provision for directors’ bonuses

15,10029,900

Provision for sales returns

12,86910,899Other

1,220,233

1,073,529

Total current liabilities

6,918,188

6,058,069

Provision for retirement benefits

592,889555,375

Other

261,853

277,191

Noncurrent liabilities

Total noncurrent liabilities
Total liabilities

5854,743

832,567

7,772,932

6,890,636

Fuji Pharma Co., Ltd. (4554) Financial Results for the Second Quarter of FY9/11(Thousands of yen)
FY9/10 summary(As of Sep. 30, 2010)

Second quarter of FY9/11(As of Mar. 31, 2011)
Net assets
Shareholders’ equity
Capital stock

1,616,950

1,616,950

Capital surplus

2,841,587

2,841,587

Retained earnings

14,198,972

13,377,833

(7)

(7)

18,657,502

17,836,363

Valuation difference on available-for-sale securities

830(3,039)Total valuation and translation adjustments

830(3,039)Treasury stock
Total shareholders’ equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets

6

18,658,333

17,833,323

26,431,265

24,723,959

Fuji Pharma Co., Ltd. (4554) Financial Results for the Second Quarter of FY9/11(2) Statements of Income(For the Six-month Period)(Thousands of yen)First six months of FY9/11(Oct. 1, 2010 – Mar. 31, 2011)

First six months of FY9/10(Oct. 1, 2009 – Mar. 31, 2010)
Net sales

9,567,070

10,745,316

Cost of sales

5,125,558

5,743,871

Gross profit

4,441,512

5,001,444

Selling, general and administrative expenses

2,830,920

3,316,861

Operating income

1,610,592

1,684,582

Interest income

1,548

842

Dividends income

146

146

Commission fee

1,735

1,161

Compensation income

1,302

1,265

Other

1,676

3,244

Total non-operating income

6,410

6,660

Non-operating income

Non-operating expenses
Interest expenses

98

2,287

Sales discounts

1,919

1,760

Depreciation

115

190

Other

412

278

2,546

4,516

1,614,456

1,686,726

Total non-operating expenses
Ordinary income
Extraordinary income
Contribution from co-development project
Other
Total extraordinary income

40,322-125-

40,448--108

Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets

64,195

8,057

Loss on valuation of investment securities-

11,348Head office transfer cost
Loss on adjustment for changes of accounting standard
for asset retirement obligations

-

5,439

-

1,120

Total extraordinary losses

64,19526,073

Income before income taxes

1,590,709

1,660,653

Income taxes-current

527,366

497,809

Income taxes-deferred

92,230122,914

Total income taxes

619,596620,723

Net income

971,1121,039,929

7

Fuji Pharma Co., Ltd. (4554) Financial Results for the Second Quarter of FY9/11(3) Statements of Cash FlowsFirst six months of FY9/10(Oct. 1, 2009 – Mar. 31, 2010)(Thousands of yen)First six months of FY9/11(Oct. 1, 2010 – Mar. 31, 2011)

1,590,709

1,660,653

492,260

454,480-

1,120

10,44637,514

Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Loss on adjustment for changes of accounting standard for asset
retirement obligations
Increase (decrease) in provision for retirement benefits
Increase (decrease) in allowance for doubtful accounts

(125)

200

(130,952)(255,639)

Increase (decrease) in provision for directors’ bonuses

1,600(14,800)

Increase (decrease) in provision for sales returns(5,245)

1,970Interest and dividends income(1,695)(989)

Loss on retirement of noncurrent assets

64,195

8,057

Increase (decrease) in provision for bonuses

Loss (gain) on sales of noncurrent assets-

108

Loss (gain) on valuation of investment securities-

11,348Decrease (increase) in notes and accounts receivable-trade418,534(623,438)

Decrease (increase) in inventories(736,046)(51,093)

Decrease (increase) in advance payments(34,193)(30,157)

Decrease (increase) in accounts receivable-other64,499

9,319

Decrease (increase) in prepaid expenses(12,281)(25,751)

Decrease (increase) in long-term prepaid expenses

63,911

56,837

Increase (decrease) in notes and accounts payable-trade358,634(129,232)

Increase (decrease) in accounts payable-other(1,303)

215,572

Increase (decrease) in long-term accounts payable-other(4,135)(12,626)

Increase (decrease) in accrued expenses(5,670)(8,885)

Increase (decrease) in accrued consumption taxes(40,918)(35,036)

Other, net(8,986)(31,875)

Subtotal

2,083,235

1,237,654

1,777

989

Interest and dividends income received
Interest expenses paid

(862)

(4,100)

Income taxes paid

(671,217)(784,245)

Net cash provided by (used in) operating activities

1,412,932

450,299

Proceeds from withdrawal of time deposits

200,000-

Purchase of property, plant and equipment(625,570)(1,678,570)

Payments for retirement of property, plant and equipment(21,380)-

Purchase of intangible assets(100,622)(131,773)

Net cash provided by (used in) investing activities

Proceeds from collection of guarantee deposits

20,000-

Other, net

(856)

(756)

(528,430)(1,811,100)-

100,000

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Proceeds from long-term loans payable-

1,300,000

Cash dividends paid

(167,204)(218,274)

Net cash provided by (used in) financing activities(167,204)

1,181,725

Net increase (decrease) in cash and cash equivalents

717,297(179,075)

Cash and cash equivalents at beginning of period

2,668,194

3,097,674

Cash and cash equivalents at end of period

3,385,492

2,918,599

8

Fuji Pharma Co., Ltd. (4554) Financial Results for the Second Quarter of FY9/11(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)
EfficacyFirst six months of FY9/10(Oct. 1, 2009 – Mar. 31, 2010)
AmountFirst six months of FY9/11(Oct. 1, 2010 – Mar. 31, 2011)%

AmountYoY change (%)%

Diagnostic drugs

4,573,256

50.8

4,751,350

48.7

3.9

Hormone drugs

2,048,525

22.8

2,346,641

24.0

14.6

533,492

5.9

614,9316.3

15.3

268,5193.0

388,8084.0

44.8

247,3192.8

201,990

2.1(18.3)

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

141,889

1.6

171,3421.7

20.8

1,182,952

13.1

1,287,954

13.2

8.9

8,995,955

100.0

9,763,020

100.0

8.5

Notes: 1. Goods manufactured are categorized by the efficacy of drugs rather than business segments because the Company has only asingle business segment, which is the pharmaceutical business.
2. The above amounts are calculated based on selling prices and do not include consumption tax.
3. Fractions less than one thousand yen are omitted.

2) Breakdown of goods purchased(Thousands of yen)
EfficacyFirst six months of FY9/10(Oct. 1, 2009 – Mar. 31, 2010)
AmountFirst six months of FY9/11(Oct. 1, 2010 – Mar. 31, 2011)%

AmountYoY change (%)%

In vitro diagnostics

545,83355.1

338,83156.5(37.9)

Hormone drugs

386,558

39.1

202,63033.8(47.6)

3,747

0.4

2,378

0.4

(36.5)

Antibiotics chemotherapeutics
Other
Total

53,861

5.4

55,5599.3

3.2

990,000

100.0

599,400

100.0(39.5)

Notes: 1. Goods purchased are categorized by the efficacy of drugs rather than business segments because the Company has only asingle business segment, which is the pharmaceutical business.
2. The above amounts are calculated based on selling prices and do not include consumption tax.
3. Fractions less than one thousand yen are omitted.

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 Second Quarter of FY9/11

4) Breakdown of sales(Thousands of yen)
EfficacyFirst six months of FY9/10(Oct. 1, 2009 – Mar. 31, 2010)

First six months of FY9/11(Oct. 1, 2010 – Mar. 31, 2011)

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

4,101,283

42.9

4,732,784

44.1

15.4

Hormone drugs

1,963,494

20.5

2,129,551

19.8

8.5

Circulatory drugs

593,3226.2

513,816

4.8(13.4)

Antibiotics & Chemotherapeutics

325,7433.4

365,563

3.4

12.2

Urogenital & genital organ drugs

177,478

1.9

196,556

1.8

10.7

Dermatological preparations

135,480

1.4

154,049

1.4

13.7

Other

965,308

10.1

1,112,616

10.4

15.3

8,262,111

86.4

9,204,938

85.7

11.4

Subtotal(Merchandise)
Hormone drugs

513,683

5.4

1,016,998

9.5

98.0

In vitro diagnostics

693,175

7.2

429,573

4.0(38.0)

Antibiotics & Chemotherapeutics

3,976

0.0

3,703

0.0

(6.9)

Dermatological preparations

1,937

0.0

1,773

0.0

(8.5)

Other

92,186

1.0

88,3290.8(4.2)

Subtotal

1,304,959

13.6

1,540,377

14.3

18.0

Total

9,567,070

100.0

10,745,316

100.0

12.3

Notes: 1. Sales are categorized by the efficacy of drugs rather than business segments because the Company has only a single businesssegment, which is the pharmaceutical business.
2. The above amounts are calculated based on selling prices and do not include consumption tax.
3. Fractions less than one thousand yen are omitted.

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