Non-consolidated Financial Results for the Fiscal Year Ended September 30, 2009
November 9, 2009

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 date of annual shareholders’ meeting:
December 18, 2009
Scheduled start date of dividend:
December 21, 2009
Scheduled submission date of annual securities report:
December 21, 2009
(All amounts are rounded down to the nearest million yen)

1. Financial Results for the Fiscal Year Ended September 30, 2009 (October 1, 2008 to September 30, 2009)(1) Operating results(Percentages shown for net sales, operating income, ordinary income and net income represent year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Fiscal year ended Sep. 30, 2009
17,198 15.1
2,462 19.2
2,477 18.7
1,525 21.9
Fiscal year ended Sep. 30, 2008
14,937 12.7
2,066 (1.8)
2,086 (2.0)
1,251
4.9
Net income per
Diluted net
Return on equity
share
income per share
Yen
Yen
%
Fiscal year ended Sep. 30, 2009118.57
9.8
Fiscal year ended Sep. 30, 2008
97.26
8.6
Note: Earnings on investments in equity-method affiliates (millions of yen) Sep. 30, 2009: -Profit margin on
sales
%
%
11.5
14.3
10.5
13.8
Sep. 30, 2008: -Return on assets(2) Financial position
Total assets
Millions of yen
Fiscal year ended Sep. 30, 2009
22,862
Fiscal year ended Sep. 30, 2008
20,355
Reference: Shareholders’ equity (millions of yen)

Shareholders’ equity
ratio
Millions of yen%
16,221
71.0
14,971
73.6
Sep. 30, 2009:
16,221
Sep. 30, 2008:
Net assets

Net assets per shareYen
1,260.42
1,163.31
14,971(3) Cash flows

Fiscal year ended Sep. 30, 2009
Fiscal year ended Sep. 30, 2008

Cash flows fromoperating activities
Millions of yen
1,816
952

Cash flows frominvesting activities
Millions of yen(1,859)(1,331)

Cash flows fromfinancing activities
Millions of yen
(270)
(283)

Cash and cash equivalents
at end of the fiscal year
Millions of yen
2,668
2,981

2. Dividends

Fiscal year ended Sep. 30, 2008
Fiscal year ended Sep. 30, 2009
Fiscal year ending Sep. 30, 2010
(Estimated)

1Q-endYen-

Dividend per share
2Q-end 3Q-end Yearend
Yen
Yen
Yen
10.00
10.00
11.00
13.00
13.00

-

13.00

Total cash
Dividend Dividends on
dividends
payout ratio
equityTotal
YenMillions of yen
%
%
20.00
257
20.6
1.8
24.00
308
20.2
2.0
26.00

19.9

3. Forecast for the Fiscal Year Ending September 30, 2010 (October 1, 2009 to September 30, 2010)

First half
Full year

Net sales
Operating income
Ordinary income
Millions of yen %Millions of yen % Millions of yen %
9,360
23.5
1,380 46.3
1,380 44.8
19,10011.1
2,725 10.7
2,740 10.6

1

(Percentages represent year-on-year changes)
Net income
Net income per share
Millions of yen %Yen
840 53.5
65.27
1,680 10.1
130.54

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

4. Supplementary Information(1) Changes in significant accounting policies
1) Changes resulting from revision of accounting standards: Yes
2) Changes other than 1) above: None
Note: Please refer to “Significant Accounting Policies” on page 14 and “Changes in Significant Accounting Policies” on page
16 for further information.

(2) Number of issued shares
1) Number of issued shares as of the end of period (including treasury stocks)

Sep. 30, 2009:

12,870,000 sharesSep. 30, 2008:

12,870,000 sharesSep. 30, 2008:

10 shares

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

Sep. 30, 2009:10 shares

Note: For the number of shares used for the calculation of net income per share, please see “Per Share Data” on page 25.

* 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.
Please refer to the section “1. Review of Operations, (1) Analysis of Operating Results” on page 3 for details on the above forecasts.

2

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

1. Review of Operations(1) Analysis of Operating Results1) Summary
In the current fiscal year, there was a severe downturn in Japan’s economy due to the impact on the real economy ofglobal turmoil in financial markets caused by the U.S. subprime loan problem. Economies are returning to normal
because of economic stimulus measures worldwide and progress in lowering inventories. As a result, there are signs ofa rebound in Japan’s exports and some industries. However, the Japanese economy remains weak due to the negative
impact of the sharp downturn in corporate earnings on employment and personal income.
In Japan’s ethical drug industry, there was more progress in measures to increase the use of generic drugs due to thetight finances of the National Health Insurance System. The number of hospitals subject to DPC (Diagnosis Procedure
Combination) increased by 335 in April 2009 and by another 232 in July 2009 to a total of 1,283. Because of this,competition is becoming even more intense as Japanese pioneer drug manufacturers, major overseas generic drug
manufacturers and other companies enter the generic drug market.
Against this background, the Company focused on the marketing of the new drug “LUNABELL tablets” (treatment
drug for dysmenorrhea associated with endometriosis) in its core field of obstetrics and gynecology, as well as on
expanding its market share in infertility treatment drugs and other core products. Given growth in the number ofhospitals subject to DPC, we also bolstered marketing activities aimed at capturing new business and increasing
business with existing customers, mainly via our core hospital team.
As a result, net sales increased 15.1% to a record-setting 17,198 million yen. Earnings also rose to all-time highs.
Operating income was up 19.2% to 2,462 million yen, ordinary income climbed 18.7% to 2,477 million yen and net
income increased 21.9% to 1,525 million yen.
Diagnostic drugs centering on the urinary tract angiographic agents “OYPALOMIN,” “IOPAQUE,” which are theprincipal products of the Company, accounted for 6,983 million yen in net sales (a 20.3% increase over the previous
fiscal year). Hormonal agents composed principally of infertility treatment drugs such as the hypophysical gonadal
stimulus hormone agent “Human Menopausal Gonadotropin,” “Folyrmon-P Injection,” the endometriosis treatment
drug “Buserecur” and the new drug “LUNABELL tablets” accounted for sales of 4,815 million yen (a 21.2% increase).
There were similarly strong results in other drug efficacy areas, resulting in an overall increase in net sales of 15.1%
over the previous fiscal year.
2) Outlook for the Next Fiscal YearIn the next fiscal year ending on September 30, 2010, Japan’s generic drug market is expected to continue growing
mainly because of an increase in generic drug use at hospitals subject to DPC. However, performance is also expected
to be affected by National Health Insurance drug price revisions that are planned to take place in April 2010. In
response to this situation, the Company started a new medium-term business plan in the next fiscal year. One goal is touse synergies from generic drugs and the new drug “LUNABELL tablets” to achieve market expansion in the field of
medical care for women. Another goal is to achieve further growth in sales of generic injection agents, chiefly urinary
tract angiographic agents, in the field of acute medical treatment. Under the business plan, the Company will also
launch strategic products, build a factory for injection agents and take other actions.
As a result, the Company expects net sales of 19,100 million yen (an 11.1% increase over the previous fiscal year),
operating income of 2,725 million yen (a 10.7% increase), ordinary income of 2,740 million yen (a 10.6% increase)with net income of 1,680 million yen (a 10.1% increase).
(2) Analysis of Financial Position
1) Assets, Liabilities and Net Assets
Total assets were 22,862 million yen as of the end of the fiscal year under review, an increase of 2,507 million yen overthe end of the previous fiscal year.
3Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Current assets totaled 15,099 million yen, an increase of 1,886 million yen, as notes and accounts receivable-trade
increased by 1,237 million yen and inventories by 648 million yen while cash and deposits decreased by 114 million
yen.
Noncurrent assets totaled 7,763 million yen, an increase of 621 million yen. In terms of property, plant and equipment,
equipment investment was made for the expansion of production capacity at the tablet agent line at the Toyama Plant.
Liabilities increased by 1,258 million yen to 6,641 million yen. Current liabilities increased by 1,213 million yen
consisting of an increase in notes and accounts payable-trade of 864 million yen and an increase in income taxes
payable of 337 million yen, which was offset partially by a reduction in accounts payable-other of 99 million yen.
Noncurrent liabilities increased by 44 million yen, mainly due to an increase in provision for retirement benefits of 55
million yen.
Net assets increased by 1,249 million yen over the total net assets as of the end of the previous fiscal year to 16,221
million yen. The principal contributing factor was an increase of 1,255 million yen in retained earnings under theshareholders’ equity resulting from the recording of net income.

2) Cash Flows
Cash and cash equivalents (hereinafter, “Cash”) as of the end of the fiscal year under review decreased by 312 million
yen to 2,668 million yen.
The cash flow components as of the end of the current fiscal year and the factors are as described below.
Cash Flow from Operating Activities
Net cash provided by operating activities totaled 1,816 million yen (a 90.7% increase over the previous fiscal year).
This was the net result of adding 952 million yen in depreciation and amortization and an 864 million yen increase innotes and accounts payable-trade to the net income before income taxes of 2,469 million yen, which was offset by a
1,237 million yen increase in notes and accounts receivable-trade and a 648 million yen increase in inventories.
Cash Flow from Investing Activities
Net cash used in investing activities was 1,859 million yen (a 39.6% increase over the previous fiscal year). Purchase ofproperty, plant and equipment was 1,288 million yen, and purchase of intangible assets was 458 million yen.
Cash Flow from Financing Activities
Net cash used in financing activities decreased by 4.6% over the previous fiscal year to 270 million yen due to cash
dividends paid.
Trends of the Company’s cash flow indicators are as follows:
FY9/05

FY9/06

FY9/07

FY9/08FY9/09Equity ratio (%)

77.1

76.6

72.9

73.6

71.0

Market value basis equity ratio (%)

90.8

103.5

146.7

101.2

103.9

Interest-bearing debt to cash flow ratio (%)

60.6

27.2

12.8

22.3

10.9

Interest coverage ratio (Times)

183.1

332.5

706.2

339.9

2,929.5- Equity ratio: Shareholders’ equity / Total assets- Market value basis equity ratio: Market capitalization / Total assets- Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flow
- Interest coverage ratio: Operating cash flow / Interest expenses* “Guarantee deposits received” in the Liabilities section of the Balance Sheets is used as interest-bearing debt.
* “Net cash provided by operating activities” in the Statements of Cash Flows and “Interest expenses” in the Statements of Income
are used as Operating cash flow and Interest expenses, respectively.

4

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09(3) Profit Allocation Policy and Dividend Payment Plan for the Current and Next Fiscal Years
One of our highest priorities is to pay a consistent dividend to shareholders and increase the dividend.
Our policy concerning the allocation of earnings is to increase retained earnings to fund future business operations
while paying a stable and consistent dividend that reflects earnings in each fiscal year, the dividend payout ratio and allother applicable items. The goal is to maintain a dividend payout ratio of 20%.
We plan to reinvest retained earnings to strength research and development, improve production capacity and efficiency,
and increase our sales force in order to strengthen our base of operations and increase corporate value.
There are no plans to change the frequency of dividend payments.
For dividends applicable to the fiscal year that ended on September 30, 2009, the year-end dividend is to be 13 yen per
share. This is one yen higher than originally planned because earnings exceeded the target in the fiscal year businessplan. With the interim dividend of 11 yen per share, this will result in an annual dividend of 24.00 yen per share and adividend payout ratio of 20.2%. For the fiscal year ending on September 30, 2010, we plan to pay an annual dividend of
26 yen per share, the sum of interim and year-end dividends of 13 yen each.
(4) Operational Risk
Risks related to information that may have a material impact on investors’ decisions that is contained in the financial
statements for the fiscal year under review are as follows. Forward-looking statements in these materials are based on
the judgment of management as of September 30, 2009.
1) Statutory Regulations
Our company manufactures and distributes pharmaceutical products under the Pharmaceutical Affairs Law and related
regulations. Revisions in laws/regulations related to the pharmaceutical industry, which may be made in future, may
influence our financial condition and business performance.
2) Research and Development for Pharmaceutical Products
There is a possibility of delays in our research and development projects and extensions, suspensions or eventerminations of new product development projects. These events may have an impact on our business performance.
3) Competition
Our policy is to sell our products at reasonable prices that take into account the profitability of products. However, someof our products have been under considerable market price pressure due to fierce competition from many competitors.
Moreover, some Japanese pioneer drug manufacturers may take aggressive actions to preserve their market shares.
These events may prevent us from achieving our forecasts.

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

3. Management Policies(1) Fundamental Management Policy
Fuji Pharma bases its operations on the management philosophies of “contributing to healthy living by supplying
outstanding pharmaceuticals: and “the growth of the company is directly linked to the development of its employees.”
By continuing to adhere to these philosophies, the Company is dedicated achieving more progress and growth. We willaccomplish this by developing, manufacturing and selling outstanding pharmaceuticals in order to fulfill our obligations
to all stakeholders, including shareholders, employees, communities and society.

5Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09(2) Performance Indicators and Targets
Maximum efforts will be made to generate sufficient earnings for distributions to shareholders as well as to upgrade andexpand production facilities and increase research and development expenditures for future growth. We haveestablished specific targets in the new medium-term business plan that will end on the fiscal year ending on September
30, 2014. Our goals are to increase net sales to 35 billion yen, ordinary income to 7.0 billion yen, net income to 4.3
billion yen, and the return on assets to at least 15%. Furthermore, for the purpose of increasing shareholder value, we
are aiming to increase net income per share and to increase the dividend per share with the goal of reaching a dividend
payout ratio of 30% in the final year of the new medium-term business plan.
(3) Medium- and Long-term Management Strategy
The new medium-term business plan is designed to achieve further growth based on the theme of “Good to Great.”
The plan has three central goals. First is to extend operations to cover more targeted diseases, mainly by using new
injection agents. Second is to become the leading company in the field of medical care for women. And third is to build
a new operating framework for success in the next half century. Overall, the objective is to achieve rapid growth inmarket sectors where we are strongest in order to be a company that can sustain growth forever.
Our strategies to accomplish this objective are to establish a base of operations centered on R&D and to enlarge ourstrategic pipeline over the medium and long terms. Furthermore, we plan to enhance our presence in the strategic
disease domains of acute medical care and medical care for women. With regard to manufacturing, our goal is tocomplete work on a network of factories that make highly activated drugs and can serve as a GMP (GoodManufacturing Practice) model for Japan as well as for the EU and United States. Executing these strategies will require
reinforcing our human resources pipeline, such as by upgrading training and recruiting activities. The aim is to create
new systems for reaching decisions and translating those decisions into actions.
(4) Key Issues
Japan’s market for generic drugs has been expanding steadily in recent years. The government has enacted numerous
measures aimed at increasing the use of these drugs as a key method of holding down health care expenses. For
example, the Ministry of Health, Labour and Welfare has established the goal of increasing the market share of genericdrugs to at least 30% by fiscal 2012.
Following the October 2007 start of the Action Program for the Safe Use of Generic Drugs, there have been evengreater demands for quality assurance and the stable supply of these drugs. In response, suppliers have been required toreinforce activities that can make generic drugs more reliable.
Competition is becoming more intense as both Japanese pioneer drug manufacturers and foreign affiliatedpharmaceutical companies enter the generic drug market. To succeed, we must act quickly to use distinctive strengths tobuild a base of operations that is not vulnerable to changes in the operating environment.
In this challenging operating environment, Fuji Pharma is concentrating on the following goals in order to accomplish
the goals of the new medium-term business plan quickly.
1) Expand the pipeline by using strategic alliances with pharmaceutical manufacturers in Japan and other countries.
2) Quickly introduce strategic products in the acute medical care field.
3) Increase support for hormone treatments in the field of obstetrics and gynecology.
4) Upgrade and expand our production systems to supply products with even better quality and provide a stable supplyof products to meet rising demand.
5) Quickly start operations at highly activated drug factories and achieve stable operations.
6) Strengthen administrative and management systems (more powerful internal controls, rigorous compliance programsand establishment of risk management system).
7) Provide training to give employees skills for management and starting new businesses.

6Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

4. Non-consolidated Financial Statements(1) Balance Sheets(Thousands of yen)
FY9/09(As of Sep. 30, 2009)

FY9/08(As of Sep. 30, 2008)
AssetsCurrent assets
Cash and deposits

2,275,671

Notes receivable-trade
Accounts receivable-trade2,161,361

746,777

746,6365,544,478

6,782,207

Short-term investment securities

705,481

706,832

Merchandise and finished goods

1,310,914

1,415,259

Work in process

760,037

844,773

Raw materials and supplies

1,209,357

1,668,493

Advance payments-trade

14,47264,017

Prepaid expenses

222,591

213,469

Deferred tax assets

316,534

415,515

Accounts receivables-other

92,571

70,771615

286

Accrued income
Other

14,607

11,658

Allowance for doubtful accounts(1,887)(2,258)13,212,222

15,099,024

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings

4,376,849

4,690,289

Accumulated depreciation(1,757,295)(1,995,026)

Buildings, net

2,619,554

2,695,263

105,425

108,685(69,903)(77,425)

Structures
Accumulated depreciation
Structures, net

35,522

31,2602,898,166

3,270,537(2,048,279)(2,332,648)

849,886

937,888

27,25935,384(22,833)(26,434)

4,425

8,950

Tools, furniture and fixtures

686,272

757,648

Accumulated depreciation(527,830)(610,509)

Tools, furniture and fixtures, net

158,442

147,139Land

527,658

634,361

Construction in progress

47,069475,562

4,242,558

4,930,427

187

137

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net

Total property, plant and equipment
Intangible assets
Right of trademark
Distributorship

1,298,000

1,231,543

Software66,13584,203

Telephone subscription right

7,976

7,976

1,372,300

1,323,861

Total intangible assets

7

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09(Thousands of yen)
FY9/09(As of Sep. 30, 2009)

FY9/08(As of Sep. 30, 2008)
Investments and other assets
Investment securities
Investment in capital
Long-term prepaid expenses
Deferred tax assets
Guaranteed deposits
Insurance funds
Long-term time deposits

148,090450
427,301
197,074542,273
12,842200,000

Total investments and other assets

138,171100
438,415
224,834
593,580
14,554
100,000

1,528,033

1,509,656

7,142,892
20,355,114

7,763,945
22,862,969

Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Provision for bonuses
Provision for directors’ bonuses
Provision for sales returns
Notes payable-facilities

443,4072,237,412
774,481
186,185358,299
27,237
13,611
571,135
15,60011,913-

488,608
3,056,271
675,386
121,034
695,739
94,14619,184
651,870
14,10014,374
21,633

Total current liabilities

4,639,283

5,852,351

212,450
461,80269,788

197,836
517,749
73,436

Total noncurrent assets
Total assets

Noncurrent liabilities
Guarantee deposits received
Provision for retirement benefits
Long-term accounts payable-otherTotal noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
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

8744,041

789,022

5,383,325

6,641,373

1,616,950

1,616,950

2,226,020
615,567

2,226,020
615,567

2,841,587

2,841,587

164,079

164,079

5,000,000
5,348,613

5,000,000
6,604,302

10,512,692

11,768,381

(7)

(7)

14,971,222

16,226,911

567(5,315)567(5,315)

14,971,789
20,355,114

16,221,596
22,862,969

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09(2) Statements of Income
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
Net sales
Net sales of finished goods
Net sales of goods
Total net sales
Cost of sales
Beginning merchandise and finished goods
Cost of purchased goods
Transfer from other account
Cost of products manufactured
Total
Ending merchandise and finished goods
Transfer to other account*2

Total cost of sales
Gross profit(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

13,535,519
1,401,997

14,769,522
2,429,253

14,937,516

17,198,775

1,183,974
977,923*1 7,632,599
9,794,497

1,310,914
1,154,771*1 13,689
8,430,500
10,909,875

1,310,914*3 18,234*2

1,415,259*3 93,755

8,465,349
6,472,167

Provision for sales returns
Gross profit-net
Selling, general and administrative expenses
Total selling, general and administrative expenses*4,*5

Operating income

9,400,860
7,797,915

3,022

2,461

6,469,145

7,795,453

4,403,055*4,*5

5,333,291

2,066,089

2,462,162

Non-operating income
Interest income
Interest on securities
Dividends income
Fiduciary obligation fee
Miscellaneous income
Total non-operating income

4,904
4,676
456
13,261
9,812
33,111

2,030
2,876
410
4,418
10,06019,796

Non-operating expenses
Interest expenses
Sales discounts
Commission fee
Compensation expenses
Miscellaneous expenses

2,802
2,331
3,302
1,560
2,210

620
2,756
956

12,2082,086,993

4,333
2,477,624

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on prior period adjustment
Gain on sales of noncurrent assets*6*7

Total extraordinary income

-

*6
*7

22,38632,721-

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of inventories
Loss on abandonment of inventories
Settlement package
Other

*8

395
56,568-55,107*8

1,910
54,337
6,500
606

Total extraordinary losses

56,96463,354

Income before income taxes

2,030,028

2,469,378

776,562
1,751

1,066,124(122,704)

Income taxes-current
Income taxes-deferred
Total income taxes
Net income

9778,314

943,420

1,251,714

1,525,958

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Manufacturing Statement
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
Note

Amount%(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
Amount%I

Cost of materials*1

5,347,624

68.7

6,098,288

71.4

II

Labor cost

*2

781,633

10.0

841,536

9.9

IIIOverheads

1,595,649

18.7

8,535,475

100.0

Depreciation and amortization

614,628

566,795

Supplies expenses

198,830

168,347

Other

844,353

1,657,812

21.3

Total manufacturing costs

7,787,070

100.0

Beginning work in process

662,011760,037

8,449,081

9,295,512

Total

860,506

Ending work in process*1760,037

844,773

Transfer to other account*3

56,444

20,238

7,632,599

8,430,500

Cost of products manufactured(Thousands of yen)
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
The Company applied the simple process costing method on thebasis of historical for cost accounting.

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)Same as on the left.

*1.

*1. Ending inventories are shown after written down on the bookvalues to reflect declines in profitability, and following loss on
valuation of inventories are included in the cost of products
manufactured.
17,140*2. The amount of provisions for allowances included in the labor
cost is as follows:
Provision for bonuses
152,791
Provision for retirement benefits
14,758*2. The amount of provisions for allowances included in the labor
cost is as follows:
Provision for bonuses
174,328
Provision for retirement benefits
14,933*3. Breakdown of transfer to other account is as follows:
Loss on abandonment of inventories
49,210
Other
7,234
Total
56,444*3. Breakdown of transfer to other account is as follows:
Cost of sales
13,207
Loss on valuation of inventories
7,031
Total
20,23810

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09(3) Statements of Changes in Net Assets
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

1,616,950

1,616,950--

1,616,950

1,616,950

2,226,020

2,226,020--

2,226,020

2,226,020

615,567

615,567

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

615,567

615,567

2,841,587

2,841,587--

2,841,587

2,841,587

164,079

164,079--

164,079

164,079

5,000,000

5,000,000

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

5,000,000

5,000,000

4,380,038

5,348,613

Dividends from surplus(283,139)(270,269)

Net income

1,251,714

1,525,958

968,574

1,255,688

5,348,613

6,604,302

9,544,117

10,512,692

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

Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus(283,139)(270,269)

Net income

1,251,714

1,525,958

968,574

1,255,688

10,512,692

11,768,381

Total changes of items during the period
Balance at the end of current period

11

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

FY9/08(Oct. 1, 2007 – Sep. 30, 2008)(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

(7)

(7)

Treasury stock
Balance at the end of previous period
Changes of items during the period
-

-

(7)

(7)

14,002,647

14,971,222

Dividends from surplus(283,139)(270,269)

Net income

1,251,714

1,525,958

Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Changes of items during the period

968,574

1,255,688

14,971,222

16,226,911

6,016

567

Net changes of items other than shareholders’ equity(5,449)(5,882)

Total changes of items during the period(5,449)(5,882)567(5,315)

6,016

567

Net changes of items other than shareholders’ equity(5,449)(5,882)

Total changes of items during the period(5,449)(5,882)567(5,315)14,008,663

14,971,789

Dividends from surplus(283,139)(270,269)

Net income

1,251,714

1,525,958(5,449)(5,882)

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

Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period

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

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

12963,125

1,249,806

14,971,789

16,221,596

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09(4) Statements of Cash Flows(Thousands of yen)
FY9/08FY9/09(Oct. 1, 2007 – Sep. 30, 2008) (Oct. 1, 2008 – Sep. 30, 2009)
Net cash provided by (used in) operating activities
Income before income taxes

2,030,028

2,469,378

Depreciation and amortization

803,048952,274

Increase (decrease) in provision for retirement benefits

51,06955,947

Increase (decrease) in provision for directors’ retirements benefits(77,110)-

Increase (decrease) in allowance for doubtful accounts

251

371

Increase (decrease) in provision for bonuses(3,950)80,734

Increase (decrease) in provision for directors’ bonuses(1,700)(1,500)

Increase (decrease) in provision for sales returns

3,022

2,461

Interest and dividends income(10,037)(5,317)-(32,721)

395

1,910

Decrease (increase) in notes and accounts receivable-trade(839,263)(1,237,587)

Decrease (increase) in inventories(163,671)(648,216)

Decrease (increase) in accounts receivable-other(82,030)

21,799Decrease (increase) in prepaid expenses(44,407)

9,121

Decrease (increase) in long-term prepaid expenses(32,774)(11,113)

Increase (decrease) in notes and accounts payable-trade255,972

864,060

Increase (decrease) in accounts payable-other56,49666,027

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

69,788

3,647

6,207

(65,150)(94,118)

66,908Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets

Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Increase in guarantee deposits received

477(14,613)

Other

14,427(21,158)

Subtotal

1,942,120

2,557,264

9,722

8,522

Interest and dividends income received
Interest expenses paid
Income taxes paid
Other, net
Net cash provided by (used in) operating activities-(3,709)(999,211)(739,332)-(6,000)952,631

1,816,744

200,000-

Net cash provided by (used in) investing activities
Proceeds from withdrawal of time deposits
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment-(100,000)(656,614)(1,288,015)-

38,683Purchase of intangible assets(926,899)(458,383)

Purchase of lease assets(222,550)-

Proceeds from sales of lease assets

326,550-

Payments for guarantee deposits(50,112)(50,112)

Other(1,712)(1,362)(1,331,338)(1,859,190)

Cash dividends paid

(283,492)(270,512)

Net cash provided by (used in) financing activities(283,492)(270,512)

Net increase (decrease) in cash and cash equivalents(662,199)(312,957)

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

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*

133,643,351*

2,981,152

2,981,152*

2,668,194

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Notes Regarding Assumptions for Company as Ongoing Concern
Not applicable.

Significant Accounting Policies
Item
1. Valuation criteria
and methods forinventories

FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
Primarily by the first-in, first-out cost method.

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
Primarily by the first-in, first-out cost method.
(The carrying value on the Balance Sheets is written
down to reflect declines in profitability).
(Changes in accounting policies)
The Company has adopted “Accounting Standards for
Measurement of Inventories” (Accounting Standards
Board of Japan (ASBJ) Statement No. 9, July 5, 2006)
from the current fiscal year. This caused declines inoperating income and ordinary income by 112,019
thousand yen each, and income before income taxes by
86,093 thousand yen.

2. Depreciation andamortization of
noncurrent assets(1) Property, plant and equipment
Declining-balance method. (However, depreciation on
the buildings which we bought after April 1, 1998
(excluding the facilities attached to the buildings) is
calculated by the straight-line method).
The useful lives of property, plant and equipment aresummarized as follows:
Buildings
7 to 50 years
Machinery and equipment
7 years(Additional information)
In accordance with the revisions to the Corporation
Tax Law, with respect to assets acquired on or before
March 31, 2007, applying the depreciation method
based on the Corporation Tax Law prior to therevision, from the fiscal year immediately succeeding
the fiscal year in which 5% of acquisition cost isreached, the difference between the amountcorresponding to 5% of the purchase price and theresidual value is amortized by the straight-line method
over 5 years and recorded as a part of the depreciation
and amortization.
As a result, operating income, ordinary income andincome before income taxes have been reduced by
9,208 thousand yen each.
(2) Intangible assets
Straight-line method.
Amortization of software used within the Company iscalculated by the straight-line method over a period of
5 years.
For distributorship, 5-year straight-line amortization
method has been applied.

14(1) Property, plant and equipment (excluding leaseassets)Declining-balance method. (However, depreciation on
the buildings which we bought after April 1, 1998
(excluding the facilities attached to the buildings) is
calculated by the straight-line method).
The useful lives of property, plant and equipment aresummarized as follows:
Buildings
7 to 50 years
Machinery and equipment
8 years(Additional information)
In accordance with the 2008 revisions of the
Corporation Tax Law, the useful life of the Company’s
machinery and equipment has been changed in thecurrent fiscal year from previously-applied 7 years to 8
years.
As a result, operating income, ordinary income andincome before income taxes have been increased by
30,285 thousand yen each.

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

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Item

FY9/08(Oct. 1, 2007 – Sep. 30, 2008)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(3) Lease assets
Lease assets associated with finance lease transactions
where there is no transfer of ownership
The straight-line method with no residual value isapplied with the lease period used as the useful life of
the assets.
For finance lease transactions where there is notransfer of ownership beginning on or before March
31, 2008, depreciation is calculated using an
accounting method that is based on the method used
for ordinary lease transactions.
(4) Long-term prepaid expenses
Same as on the left.

(3) Long-term prepaid expenses
Straight-line method.
3. Accounting forlease transactions

Finance leases other than those, which are deemed totransfer the ownership of the lease assets to the lessees,
are accounted for by the method based on the method
used for ordinary lease transactions.

The information other than the above is not presented since there are no significant changes from the most recent Annual Securities
Report (filed on December 22, 2008).

15

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Changes in Significant Accounting Policies
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)(Accounting standards for lease transactions)
In prior years, the Company accounted for finance leasetransactions where there is no transfer of ownership as ordinary
lease transactions for accounting purpose. However, the Company
has adopted “Accounting Standards for Lease Transactions”(ASBJ Statement No. 13: originally issued on June 17, 1993 by
Section 1 of the Business Accounting Deliberation Counsel, andrevised on March 30, 2007 by Accounting Standards Board ofJapan), and “Guidance on Accounting Standards for Lease
Transactions” (ASBJ Guidance No. 16: originally issued on
January 18, 1994 by Accounting Standards Committee of theJapanese Institute of Certified Public Accountants, and revised on
March 30, 2007 by Accounting Standards Board of Japan) in thecurrent fiscal year, and using an accounting method for leases thatis based on the method used for ordinary purchases and sales.
For finance lease transactions where there is no transfer ofownership beginning on or before March 31, 2008, the Company
continues to use an accounting method that is based on themethod used for ordinary lease transactions.
There is no effect of this change on earnings.

Reclassifications
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)

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

16

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Notes to Non-consolidated Financial Statements
Notes to Statements of Income(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)*1. Breakdown of transfer from other accountTransfer from cost of products manufactured
13,689FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
*1.

*2.

*3. Breakdown of transfer to other accountSelling, general and administrative expenses
Loss on abandonment of inventories
Total*2. Ending inventories are shown after written down on the bookvalues to reflect declines in profitability. The amount written
down on the book values due to decline in profitability ofnormal inventories for sale are as follows.
Cost of sales
63,433Extraordinary loss
54,337

10,876
7,358
18,234*3. Breakdown of transfer to other accountLoss on valuation of inventories
Loss on prior period adjustment
Selling, general and administrative expenses
Total

47,30636,352
10,09693,755*4. Significant components of selling, general and administrative
expenses
Salaries and bonuses
1,182,221
Research and development expenses
625,544
Provision for bonuses
364,265
Sales commission
300,087
Welfare expenses
252,940
Traveling and transportation expenses
241,620
Provision for retirement benefits
39,996
Provision for directors’ bonuses
15,600
Provision for directors’ retirement benefits473*4. Significant components of selling, general and administrative
expenses
Salaries and bonuses
1,326,626
Research and development expenses
918,821
Sales commission
489,432
Provision for bonuses
411,569
Depreciation and amortization
327,650
Provision for retirement benefits
45,959Provision for directors’ bonuses
14,100*5. Total amount of research and development expenses
Research and development expenses included in
625,544
general and administrative expenses*5. Total amount of research and development expenses
Research and development expenses included
918,821in general and administrative expenses*6.

*6. Gain on prior period adjustment
The gain on prior period adjustment is the sum of two items.
First is the difference between (1) the amount of goods
purchased in the previous fiscal year in association with theretroactive revision of the prior-year procurement unit price(50,480 thousand yen) and (2) inventories of goods at the end of
the fiscal year (36,352 thousand yen). Second is the partial
reversal of selling expenses in the previous fiscal year (8,258
thousand yen).

*7.

*7. Gain on sales of noncurrent assets
Land

32,721*8. Breakdown of loss on retirement of noncurrent assets
Buildings
Machinery and equipment
Tools, furniture and fixtures
Total

1,160
513
236
1,910

*8. Breakdown of loss on retirement of noncurrent assets
Tools, furniture and fixtures

395

17

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Notes to Statements of Changes in Net Assets
FY9/08 (Oct. 1, 2007 – Sep. 30, 2008)
1. Type and number of issued shares and treasury stock
Number of shares
as of Sep. 30, 2007

(Shares)
Increase

Number of shares
as of Sep. 30, 2008

Decrease

Issued shares
Common stockTotal

12,870,000--

12,870,000

12,870,000--

12,870,000

10

-

-

10

10

-

-

10

Treasury stock
Common stock
Total

2. Items related to acquisition rights for new shares and treasury stock
Not applicable.
3. Dividends(1) Dividend payment
Resolution

Type of share

Total amount of dividend(Thousands of yen)

Dividend pershare (Yen)Record date

Effective date

154,439

12

Sep. 30, 2007

Dec. 21, 2007

128,699

10

Mar. 31, 2008

Jun. 2, 2008

Annual shareholders’ meeting
Common stock
on Dec. 20, 2007
Board of Directors’ meeting on
Common stock
May 9, 2008

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

Type of share

Annual shareholders’ meetingon Dec. 19, 2008

Commonstock

Total amount ofdividend(Thousands of yen)

Source offunds

Dividend pershare (Yen)Record date

Effective date

128,699

Retainedearnings

10

Sep. 30, 2008

Dec. 22, 2008

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

(Shares)
Increase

Number of shares
as of Sep. 30, 2009

Decrease

Issued shares
Common stockTotal

12,870,000--

12,870,000

12,870,000--

12,870,000

10

-

-

10

10

-

-

10

Treasury stock
Common stock
Total

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

Type of share

Total amount of dividend(Thousands of yen)

Dividend pershare (Yen)Record date

Effective dateCommon stock

128,699

10

Sep. 30, 2008

Dec. 22, 2008

Common stock

141,569

11

Mar. 31, 2009

Jun. 1, 200918

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution

Type of share

Annual shareholders’ meetingon Dec. 18, 2009

Commonstock

Total amount ofdividend(Thousands of yen)

Source offunds

Dividend pershare (Yen)Record date

Effective date

167,309

Retainedearnings

13

Sep. 30, 2009

Dec. 21, 2009

Notes to Statements of Cash Flows
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
Relationship between the cash and cash equivalents at end of theperiod and the amount booked in the balance sheets(As of Sep. 30, 2008)
Cash and deposits
2,275,671
Short-term investment securities
705,481
Cash and cash equivalents
2,981,152(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
Relationship between the cash and cash equivalents at end of theperiod and the amount booked in the balance sheets(As of Sep. 30, 2009)
Cash and deposits
2,161,361
Short-term investment securities
706,832
Time deposit with maturities over 3 months(200,000)
Cash and cash equivalents
2,668,19419

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Notes to Lease Transactions
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
1. Finance lease transactions other than those in which the title ofthe leased property is transferred to the lessee(1) The pro forma amounts of the acquisition costs, accumulated
depreciation and closing balance of the lease assets.
Machinery and equipment
Acquisition costs
2,069,108
Accumulated depreciation
969,190
Closing balance
1,099,918
VehiclesAcquisition costs
76,166
Accumulated depreciation
26,390
Closing balance
49,776
Tools, furniture and fixtures
Acquisition costs
60,699
Accumulated depreciation
52,797
Closing balance
7,901
Total
Acquisition costs
2,205,974
Accumulated depreciation
1,048,378
Closing balance
1,157,595(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
1. Finance lease transactions other than those in which the title ofthe leased property is transferred to the lessee(1) The pro forma amounts of the acquisition costs, accumulated
depreciation and closing balance of the lease assets.
Machinery and Equipment
Acquisition costs
2,069,108
Accumulated depreciation
1,183,492
Closing balance
885,615
VehiclesAcquisition costs
66,400
Accumulated depreciation
39,117
Closing balance
27,283Tools, furniture and fixtures
Acquisition costs
6,771
Accumulated depreciation
4,737
Closing balance
2,033
Total
Acquisition costs
2,142,280
Accumulated depreciation
1,227,347
Closing balance
914,932(2) The pro forma amounts of closing balance of the unexpired
lease payments
Due in one year or less
243,815
Due after one year
961,193
Total
1,205,008(2) The pro forma amounts of closing balance of the unexpired
lease payments
Due in one year or less
423,087
Due after one year
528,727
Total
951,814(3) Lease payment, and pro forma amounts of depreciation andinterest expenses
Lease payments
275,062
Depreciation
246,599
Interest expenses
24,925(3) Lease payment, and pro forma amounts of depreciation andinterest expenses
Lease payments
304,695
Depreciation
233,108
Interest expenses
20,163(4) Methods of calculation of pro forma amounts of depreciation
Depreciation of lease assets is calculated on the basis of thestraight-line method assuming the respective lease terms as theuseful lives. As for the residual value, in the case of agreements
stipulating the residual value assured, the residual value
concerned is adopted and in any other cases, the residual value isassumed at zero.

(4) Methods of calculation pro forma amounts of depreciation
Same as on the left.

(5) Methods of calculation of pro forma amounts interests(5) Methods of calculation of pro forma amounts interests
Same as on the left.
The difference between the total amount of the lease payments(excluding maintenance and administration costs) and theacquisition cost of the lease assets is treated as interest and theway of allocating the interest to the respective fiscal years applied
is by the interest method.
2. Operating lease transactions
Unexpired lease payments:
Due in one year or lessDue after one year
Total

2. Operating lease transactions
Unexpired lease payments:
Due in one year or lessDue after one year
Total

90,792
266,706
357,498(Loss on impairment)
There is no loss on impairment allocated to lease assets.

(Loss on impairment)
Same as on the left.

20

90,792
175,914
266,706

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Notes to Securities Holding
Securities
1. Breakdown of available-for-sale securities
FY9/08(As of Sep. 30, 2008)
Acquisition
Carrying
Unrealized
cost
value
gain (loss)

Item

Stock
Securities
Debt securities
whose
Government bonds, etc.
carrying value
Corporate bonds
exceeds their
Otheracquisition
Other
cost
Subtotal

36,95436,993

38

-

-

-

99,980100,897917

99,980102,564

2,584

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

136,934

137,890956

99,980102,564

2,584

-

-

-

36,95425,407(11,547)

-

-

-

-

-

-

-

-

-

-

-

-

Stock
Securities
Debt securities
whose
carrying value Government bonds, etc.
does notCorporate bonds
exceed their
Otheracquisition
Other
cost
Subtotal
Total(Thousands of yen)
FY9/09(As of Sep. 30, 2009)
Acquisition
Carrying
Unrealized
cost
value
gain (loss)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

36,95425,407(11,547)

136,934

137,890956

136,934

127,971(8,963)

2. Breakdown of nonmarketable securities(Thousands of yen)
FY9/09(As of Sep. 30, 2009)

FY9/08(As of Sep. 30, 2008)

Item

Carrying value

Carrying value

Other securities
Free Financial Fund

503,690

504,528

Money Management Fund

201,790

202,304

Unlisted stock

10,200

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 theissuer’s financial conditions, the Company applies the impairment accounting method to the securities.
3. Estimated redemption amount of available-for-sale securities with maturity dates
FY9/08(As of Sep. 30, 2008)
Over 10years

Less than 1
year(Thousands of yen)
FY9/09(As of Sep. 30, 2009)
Over 10
1-5 years 5-10 years
years

Less than 1year

1-5 years

5-10 years(1) Government bonds, etc.

-

100,000---

100,000--(2) Corporate bonds

-

-

-

-

-

-

-

-

(3) Other

-

-

-

-

-

-

-

-

2. Other

-

-

-

-

-

-

-

-

-

100,000---

100,000--

1. Debt securities

Total

21

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Notes to Derivative Transactions
Not applicable because the company did not have any derivative transactions.

Notes to Retirement Benefit Plan
1. Description of the retirement benefit plan
The Company provides a lump-sum pension plan in accordance with internal rules. Furthermore, the Company is a member of the
Smaller Enterprise Retirement Allowance Mutual Aid Corporation. The Company may provide a premium severance pay dependingon the reason for an employee’s resignation.
In April 2003, the Company amended the lump-sum pension plan and introduced the defined contribution pension plan and the
prepaid retirement benefit plan.
2. Breakdown of the retirement benefit obligations
FY9/08(As of Sep. 30, 2008)(1) Retirement benefit obligations(2) Estimated retirement benefit to be provided by Mutual Aid
Corporation(Thousands of yen)
FY9/09(As of Sep. 30, 2009)

655,180

700,141

193,378

182,391

461,802517,749

FY9/08(Oct. 1, 2007 – Sep. 30, 2008)(Thousands of yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

66,72372,304(3) Provision for retirement benefits (1-2)

3. Breakdown of the retirement benefit expenses(1) Service costs(2) Premium severance allowance paid temporarily

1,601

995

(3) Premiums paid to the Defined Contribution Pension Fund

19,782

24,500(4) Prepaid retirement benefits

7,374

8,207

(5) Retirement benefit expenses

95,481106,007

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

Notes to Stock Options
Not applicable.

22

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Notes to Tax Effect Accounting
FY9/08(As of Sep. 30, 2008)
1. Breakdown of deferred tax assets and liabilities(Deferred tax assets)
Nondeductible provision for bonuses
Nondeductible provision for retirement benefits
Nondeductible accrued enterprise tax
Other
Total deferred tax assets

232,452
187,953
30,60762,984
513,997(Deferred tax liabilities)
Valuation difference on available-for-sale securities
Net value of deferred tax assets(389)
513,608

2. Difference between the effective tax rate and the rate of income
tax based on the tax effect accounting
Statutory tax rate
40.7%
(Disparity)
Deductible research and development expenses(2.7)%
Provincial tax to be levied for the fiscal year
0.6%
concerned
Permanent nondeductible items such as
0.8%
entertainment expenses
Other(1.1)%
Statutory tax rate based on the tax effect accounting
38.3%(Thousands of yen)
FY9/09(As of Sep. 30, 2009)
1. Breakdown of deferred tax assets and liabilities(Deferred tax assets)
Nondeductible provision for bonuses
265,311
Nondeductible provision for retirement benefits
210,724
Nondeductible accrued enterprise tax
58,167
Loss on valuation of inventories
36,904
Valuation difference on available-for-sale
3,648
securities
Other
65,594
Total deferred tax assets
640,350

2. Difference between the effective tax rate and the rate of income
tax based on the tax effect accounting
Statutory tax rate
40.7%
(Disparity)
Deductible research and development expenses(3.9)%
Provincial tax to be levied for the fiscal year
0.5%
concerned
Permanent nondeductible items such as
0.9%
entertainment expenses
Other
0.0%
Statutory tax rate based on the tax effect accounting
38.2%

Notes to Equity in Income of Affiliates
Not applicable.

23

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

Transactions with Concerned Parties
FY9/08 (Oct. 1, 2007 – Sep. 30, 2008)(1) Parent company and major corporate shareholders
Attribute

Major corporate shareholder

Company name

Mitsui & Co., Ltd.

Address

Chiyoda-ku, Tokyo

Capital or invested amount

339,619,739 thousand yen

Business details or occupation

General trading company

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

Details of relationship

Concurrent directors

None

Business relationshipSupply of raw materials and merchandise

Transaction amount(Thousands of yen)Transaction
details

Supply of raw materials andmerchandise (Notes 1, 2)
Purchase of development bulk
pharmaceuticals (Notes 1, 2)

Closing balance(Thousands of yen)Account

1,582,619

Accounts payable-trade

477,0125,170

Accounts payable-other

1,006

23,105

Accounts payable-other

3,683

Fees and other (Notes 1, 2)(2) Directors and major individual shareholders
Attribute

Director

Company name

Fujiaki Mimura

Address-

Capital or invested amount-

Business details or occupation

Auditor of the Company, Lawyer

Proportion of voting rights held (or being held)-

Details of relationship

Concurrent directors-

Business relationship-Transaction amount(Thousands of yen)Transaction details

Legal fees (Note 3)

2,982

Account

Closing balance(Thousands of yen)--

Attribute

Director

Company name

Masayuki Uchida

Address

Kita-ku, Tokyo

Capital or invested amount

200,000 thousand yen

Business details or occupation

Director of the Company, and President of Miyarisan Pharmaceutical Co., Ltd.

Proportion of voting rights held (or being held)-

Details of relationship

Concurrent directors

1 concurrent director

Business relationship

Sales of the Company’s products

Transaction amount(Thousands of yen)Account

Closing balance(Thousands of yen)

Sales of the Company’s
6,789 Accounts payable-trade
7,129
products (Notes 1, 2)
Notes: 1. The terms and conditions of the above transactions were decided on the basis of the same criteria used for other usualtransactions.
2. The transaction value based on arm-length transactions.
3. With respect to the legal fees above, determined through negotiations based on the compensation rules prepared by Bingham
McCutchen Murase LLP, Sakai Mimura Aizawa Law Office (foreign law joint office).
4. The amounts of the above transaction values do not include consumption tax, while closing balances include consumption
tax.
Transaction details

24Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

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

Major shareholders

Company name

Mitsui & Co., Ltd.

Address

Chiyoda-ku, Tokyo

Capital or invested amount

339,626,747 thousand yen

Business details or occupation

General trading company

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

Details of relationshipSupply of raw materials and merchandise
Transaction amount(Thousands of yen)Transaction details

Supply of raw materials andmerchandise (Notes 1, 2)

Closing balance(Thousands of yen)Account

2,025,887 Accounts payable-trade711,363

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

Per Share Data
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)
Net assets per share
1,163.31
Net income per share
97.26
Diluted net income per share is not presented because there are no
latent shares, such as convertible bonds issued by the Company.

(Yen)
FY9/09(Oct. 1, 2008 – Sep. 30, 2009)
Net assets per share
1,260.42
Net income per share
118.57
Diluted net income per share is not presented because there are no
latent shares, such as convertible bonds issued by the Company.

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

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

FY9/08(Oct. 1, 2007 – Sep. 30, 2008)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

1,251,714

1,525,958--

Net income applicable to Common stock (Thousands of yen)

1,251,714

1,525,958

Average number of shares outstanding (Shares)

12,869,990

12,869,990

Material Subsequent Events
Not applicable.

25

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

5. Others(1) Changes in Directors
1) Change of Representative Director
Not applicable.
2) Change of other board members
Candidate for director appointment (Effective December 18, 2009)
Director Kenichi Tokunaga (Currently Executive Officer, Manager of Business Strategy Office)(2) Other Information
Goods Manufactured, Orders Received and Sales
1. Breakdown of goods manufactured(Thousands of yen)
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

AmountAmount%YoY change (%)%

Diagnostic drugs

5,887,835

41.5

7,099,194

44.2

20.6

Hormone drugs

3,881,895

27.3

4,264,418

26.6

9.9

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

1,254,018

8.8

1,300,201

8.1

3.7

627,1194.4

858,3145.3

36.9

369,608

2.6

317,0882.0(14.2)

214,518

1.5

227,697

1.4

6.1

Other

1,965,892

13.9

1,995,415

12.4

1.5

14,200,888

100.0

16,062,330

100.0

13.1

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.

2. Breakdown of goods purchased(Thousands of yen)
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

AmountAmount%YoY change (%)%

In vitro diagnostic

499,41251.1

667,565

57.8

33.7

Hormone drugs

351,557

35.9

321,469

27.8

(8.6)

Dermatological preparation

49,5705.1

50,236

4.4

1.3

Antibiotics &Chemotherapeutics

3,499

0.4

2,534

0.2

(27.6)

Other

73,883

7.5

112,9669.8

52.9

977,923100.0

1,154,771

100.0

18.1

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

26

Fuji Pharma Co., Ltd. (4554) Financial Results for FY9/09

4. Breakdown of sales(Thousands of yen)
FY9/08(Oct. 1, 2007 – Sep. 30, 2008)

FY9/09(Oct. 1, 2008 – Sep. 30, 2009)

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

5,803,755

38.9

6,983,814

40.6

20.3

Hormone drugs

3,731,114

25.0

3,806,844

22.1

2.0

Circulatory drugs

1,231,402

8.2

1,161,931

6.8

(5.6)

623,136

4.2

636,988

3.7

2.2

Antibiotics & Chemotherapeutics
Urogenital & genital organ drugs

332,475

2.2

364,297

2.1

9.6

Dermatological preparation

225,470

1.5

196,7411.1(12.7)

1,588,164

10.6

1,618,903

9.4

2.0

13,535,519

90.6

14,769,522

85.9

9.1

In vitro diagnostic

873,980

5.9

1,124,533

6.5

28.7

Hormone drugs

242,105

1.6

1,008,255

5.9

316.5

Dermatological preparation

103,820

0.7

91,3380.5(12.0)

Antibiotics & Chemotherapeutics

11,763

0.1

9,694

0.1

(17.6)

Others170,327

1.1

195,431

1.1

14.7

OthersSubtotal(Goods purchased)

Subtotal

1,401,997

9.4

2,429,253

14.1

73.3

Total

14,937,516

100.0

17,198,775

100.0

15.1

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.

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

27