Non-Consolidated Financial Statements
Six Months Results (October 1, 2008 to March 31, 2009) for the Fiscal Year Ending
September 30, 2009
April 30, 2009
Company name:
Code number:
Stock Exchange listing:
Representative:
Contact:

Fuji Pharma Co., Ltd.
URL http://www.fujipharma.jp4554
JQ
Hirofumi Imai, President & CEO
Toyoyuki Kamide, Director and General Manager of Administration Department
TEL: +81-(0)3-3556-3344
Scheduled submission date of semi-annual securities report:
May 15, 2009
Scheduled start date of dividend：
June 1, 2009
1. Financial Results for the First Half of the Fiscal Year Ending September 30, 2009 (October 1, 2008 to March
30, 2009)(1) Operating Results
Net sales
Operating income
Ordinary income
YoY change
YoY change
YoY change
Million yen
Million yen
Million yen
(%)
(%)
(%)
First half ended March 2009
7,581
943
952
6,839
First half ended March 2008
6.7
1,027
-2.5
1,029
-2.7
Net income
Million yen

Net income per share

Diluted net income per share

Yen

Yen

42.51
49.66

－
－

YoY change(%)

547
First half ended March 2009First half ended March 2008
639
Note: Percentages represent year-on-year changes.

7.4（2）Financial Position
Net assets
Equity ratio
Net assets per share
Total assets
Million yen(%)
Yen
Million yen
First half ended March 2009
74.6
1,195.40
20,60915,384
Fiscal year ended September 2008
20,355
14,97173.6
1,163.31
Note: Equity : First half period ended March 2009: 15,384 million yen
Fiscal year ended September 2008: 14,971 million yen
2．Dividends
Dividend per share (yen)
1st quarter end
2nd quarter end
3rd quarter end
Year-end
Annual
10.00
20.00
Fiscal year ended September 2008
10.00
11.00
Fiscal year ending September 2009
Fiscal year ending September
12.00
23.00
2009 (Estimated)
Note: Dividend forecast revision during quarter—No
3．Forecast for the Fiscal Year Ending September 30, 2009 (October 1, 2008 to September 30, 2009)
Net sales

Operating income

Ordinary income¥ Million¥ Million%¥ Million%
17,000
13.8
2,300
11.3
2,310
Note: Earnings forecast revision during quarter—Yes
Percentages represent year-on-year changes.

－

1

%
10.7

－

Net income¥ Million
1,360

Net income per share
%
8.7

Yen
105.67

4．Supplementary Information(1) Application of simplified accounting treatment or special accounting treatment to quarterly financial statements-Yes
Note: For details, please see Qualitative Information and Financial Statements, part 4. Other, on page 4(2) Change in accounting standards, methodology or presentation for quarterly financial statements (items to listed underchanges to important entries that are fundamental to preparation of quarterly financial statements)(i) Changes resulting from revision of account standards-Yes(ii) Changes other than under (i) above-No
Note: For details, please see Qualitative Information and Financial Statements, part 4. Other, on page 4（3）Number of issued shares (capital stock)(i) Number of issued shares as of the end of period (including treasury stock shares):
Second quarter of year ending September 2009:
12,870,000 sharesFiscal year ended September 2008:
12,870,000 shares(ii) Number of treasury stock shares as of the end of period
Second quarter of year ending September 2009:10 shares
Fiscal year ended September 2008:
10 shares(iii) Average number of issued shares during period (cumulative quarterly period)
Second quarter of year ending September 2009:
12,869,990 shares
Second quarter of year ended September 2008:
12,869,990 shares(Notes to our earnings forecasts)
1. Forward looking statements such as the earnings forecasts presented in these materials are based on information currently
available to the Company and specific assumptions that the Company considers to be rational. Actually earnings may varyconsiderably due to a broad range of factors. For the assumptions upon which earnings forecasts are based and precautionary
statements regarding their use, please see Qualitative Information and Financial Statements, part 3. Qualitative information
regarding earnings forecasts, on page 4.
2. From the current fiscal year, Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12) and Guidanceon Accounting Standard for Quarterly Financial Reporting (ASBJ Guidance No. 14) are applied. In addition, quarterly financial
statements were prepared in accordance with FSA rules for quarterly financial statements.

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2

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Qualitative information and financial statements
1. Qualitative information regarding business results
In the first two quarters of the current fiscal year, the stock market was depressed by disruption to global financial markets
triggered by US subprime loan problems. The forex market was also highly volatile. Corporate earnings deteriorated rapidly,
due to decline in exports resulting from factors such as contraction in demand globally and decrease in capital spending.
This impacted the environment for employment and incomes, and there was further marked further deterioration in overall
economic conditions.
In the ethical drug industry, there was a growing move towards the use of generic drugs, due to the increasingly tightfinancial situation of the National Health Insurance scheme.
Against this background, the Company focused on marketing of Lunabell tablets (treatment for dysmenorrhea resulting fromendometriosis) in its core field of obstetrics and gynecology, as well as expanding its market share in core infertility
treatments. Given growth in the number of hospitals adopting the diagnostic procedure combination (DPC) system, we alsobolstered marketing activities aimed at winning new business and expanding business with existing customers, mainly via
our core hospital team. At the same time, general expenses, personnel costs and research and development expenditure
related to the launch of new drugs also grew.
As a result, cumulative sales through the second quarter were ¥7,581 million, up 10.8% year on year, operating income was¥943 million, down 8.2%, ordinary income was ¥952 million, down 7.5%, and net income was ¥547 million, down 14.4%,
so sales rose but profits declined.
2. Qualitative information regarding financial conditions
Assets, liabilities and net assets
Total assets stood at ¥20,609 million at the end of the second quarter, up ¥254 million relative to the end of theprevious fiscal year. Net assets grew ¥413 million relative to the end of the previous fiscal year, to ¥15,384 million,
and the shareholders' equity ratio was 74.6%.
Current assets grew ¥18 million, as inventories and cash and deposits rose while notes and accounts receivable-trade declined.
Noncurrent assets grew ¥235 million, due to in part to increase in purchase of property, plant and equipment.
Current liabilities decline ¥179 million, with accounts payable growing but provision for bonuses declining,
and noncurrent liabilities grew ¥20 million, due in part to increase in provision for retirement benefits.
In net assets, retained earnings grew ¥413 million despite the dividend payment, thanks to the booking of quarterly
net profits.
Cash flow
Cash and cash equivalents (hereinafter "cash") grew ¥43 million relative to the end of the previous fiscal year to¥3,024 million at the end of the second quarter.
Cash flow and cash-flow breakdown as of the end of the second quarter are as follows.
(i) Net cash provided by (used in) operating activities
Net cash provided by operating activities was ¥807 million, thanks to positive contributions of ¥904 million fromincome before income taxes ¥444 million depreciation and ¥427 million decline in notes and accounts receivable-trade,as against negative contributions of ¥386 million from growth in inventories, ¥345 million corporate tax payments,¥181 million decline in provision for bonuses.
(ii) Net cash provided by (used in) investment activities
Purchase of property, plant and equipment were ¥496 million, and the outflow due to payment into time deposits was¥100 million, so net cash used in investment activities was ¥634 million.
(iii) Net cash provided by (used in) financing activities
Net cash used in financing activities was ¥128 million, due to the dividend payment.

－

3

－

3. Qualitative information regarding earnings forecasts
Cumulative second quarter sales declined 2.3%, falling marginally short of the revised earnings forecasts disclosed in the
results announcement for the first quarter on January 30, 2009, but profits exceeded the revised forecasts, with operating
income rising 4.8%, ordinary income up 5.3% and net income increasing 9.4%. The environment is expected to become
more favorable to growth in the generic drug market in the second half, with the number hospitals subject to DPC growing,
but in light of results through the second quarter, the Company has revised its full-year forecasts downwards as shown below.
The difference to the earnings forecasts released in the results announcement of November 10, 2008, are as shown below.
(full year)
Net income per
Net sales
Operating income Ordinary income
Net income
share¥ Million¥ Million¥ Million¥ Million
Yen
Previous forecasts (A)17,700
2,453
2,458
1,475
114.63
Revised forecast (B)105.67
17,000
2,300
2,310
1,360
Change (B-A)
-700
-153
-148
-115
Change (%)
-4.0
-6.2
-6.0
-7.8
Previous fiscal year
97.26
14,937
2,066
2,086
1,251
4. Other(1) Application of simplified accounting treatment or special accounting treatment to quarterly financial statements
1. Simplified accounting treatment(i) Methodology for estimation of defaults on general claims
As no major change was recognized in the actual loan loss ratio as of the end of the second quarter relative to the end of
the previous fiscal year, estimated loan losses are based on the actual loan loss ratio at the end of the previous fiscal year.
(ii) Valuation methodology for inventories
Write-downs on the book value of inventories are based on estimated net sales value for those inventories subject to clear
decline in profitability.
(iii) Depreciation method for noncurrent assets
For assets depreciated in a straight line, depreciation expenses are recognized proportionally throughout the fiscal year.
2. Special accounting treatment for preparation of quarterly financial statements
Not applicable(2) Changes to accounting standards, procedures and presentation for quarterly financial statements
1. From the current fiscal year, the Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12) and
Guidance on Accounting Standard for Quarterly Financial Reporting (ASBJ Guidance No. 14) are applied. In addition,quarterly financial statements are prepared in accordance with FSA rules for quarterly financial statements
2. Normal inventories for sale were previously valued using the first-in-first-out method. Given the application from the firstquarter of Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9, July 5, 2006), the first-in-first-out
method is used to calculate COS (inventories for which profitability has declined markedly are written down on the balance
sheet). This caused decline of ¥47 million in cumulative operating and ordinary income and ¥82 million in income before
income taxes.

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4

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5. Six-Month Non-consolidated Financial Statements (October 1, 2008 to March 31, 2009)(1) Non-consolidated Balance Sheets
As of March 31, 2009

(Thousands of yen)
As of September 30, 2008
(summary)

2,418,174
5,864,057
706,454442,800
1,047,467
1,392,246
695,416
89,211
577,000-1,75913,231,069

2,275,671
6,291,256
705,481
476,086
834,827
1,120,594
760,037
88,763
661,391-1,887
13,212,222

2,634,590
1,840,844
4,475,435
1,254,453
1,648,900
7,378,789
20,609,859

2,619,554
1,623,004
4,242,558
1,372,300
1,528,033
7,142,892
20,355,114

2,739,061
319,262
389,775
8,800
12,814990,328
4,460,042

2,680,819
358,299
571,135
15,60011,9131,001,515
4,639,283

483,480
281,495
764,976
5,225,019

461,802282,238
744,041
5,383,325

AssetsCurrent assets
Cash and deposit
Notes and accounts receivable-trade
Short-term investment securities
Merchandise
Finished goods
Raw materials
Work in process
Supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for sales returns
Other
Total current liabilities
Noncurrent liabilities
Provision for retirement benefits
Other
Total noncurrent liabilities
Total liabilities

－

5

－

As of March 31, 2009

(Thousands of yen)
As of September 30, 2008
(summary)

1,616,950
2,841,587
10,931,071-7
15,389,601

1,616,950
2,841,587
10,512,692-7
14,971,222-4,761-4,761
15,384,840
20,609,859

567
567
14,971,789
20,355,114

Net Assets
Shareholders' equity
Capital stock
Capital surplus
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

－

6

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（2） Non-consolidated Statement of Income(Thousands of yen)Six months ended March 31, 2009
(October 1, 2008 to March 31, 2009)
7,581,604
4,192,737
3,388,866
2,445,403
943,463

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Fiduciary obligation fee
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Depreciation and amortization
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on prior period adjustment
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of inventories
Other
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income

3,038
169
4,487
3,753
11,449
312
1,236
191
370
2,111
952,802
14,128128
14,256
1,242
54,337
6,606
62,186
904,871306,31251,480357,792
547,078－7－

(3) Non-consolidated Statement of Cash Flows(Thousands of yen)Six months ended March 31, 2009
(October 1, 2008 to March 31, 2009)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Increase (decrease) in provision for retirement benefits
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for sales returns
Interest and dividends income
Loss on retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in advance payments
Decrease (increase) in accounts receivable-other
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in long-term accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends income received
Income taxes paid
Other payments
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Other
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Opening balance of cash and cash equivalents
Closing balance of cash and cash equivalents－

904,871444,806
21,678-128-181,360-6,800901-3,2081,242
427,198-386,833-17,965
37,951
2,511-67,026
58,242
25,674-1,629-96,118
22,142-31,302
1,154,848
3,518-345,045-6,000807,320-100,000-496,005-38,352-506-634,863-128,980-128,980
43,4752,981,152
3,024,6288－

(4) Notes regarding assumptions for company as ongoing concern
Not applicable(5) Notes regarding material change in shareholders' equity
Not applicable

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9

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For Reference
Financial Statements for the same period of the previous year
(1) Interim Non-consolidated Statement of Income(Thousands of yen)Interim Period of the Previous Year
(October 1, 2007 to March 31, 2008)
AmountⅠ Net sales
Ⅱ Cost of sales
Gross profit
Provision of allowance for sales returns
Gross profit-net
Ⅲ Selling, general and administrative expenses
Operating income
Ⅳ Non-operating income
Ⅴ Non-operating expenses
Ordinary income
Ⅵ Extraordinary income
Ⅶ Extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Net income

273,272
105,087

－

10

－

(%)
6,839,906
3,861,049
2,978,856
387
2,978,469
1,950,509
1,027,959
8,730
6,740
1,029,948
161
12,687
1,017,422

100.0
56.5
43.5
0.0
43.5
28.5
15.0
0.2
0.1
15.1
0.0
0.2
14.9

378,360
639,062

5.6
9.3

（2） Interim Cash Flow Statements(Thousands of yen)Interim Period of the Previous Year
(October 1, 2007 to March 31, 2008)
AmountⅠ Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Increase in provision for retirement benefits
Decrease in provision for directors' retirement benefits
Decrease in allowance for doubtful accounts
Decrease in provision for bonuses
Decrease in provision for directors' bonuses
Increase in provision for sales returns
Interest and dividends income
Loss on retirement of noncurrent assets
Decrease in notes and accounts receivable-trade
Increase in inventories
Increase in advance payments
Increase in accounts receivable-other
Increase in long-term prepaid expenses
Decrease in notes and accounts payable-trade
Increase in accounts payable-other
Increase in long-term accounts payable-other
Decrease in accrued expenses
Increase in accrued consumption taxes
Decrease in Guarantee deposits received
Other
Sub totalInterest and dividends income received
Income taxes paid
Net cash provided by (used in) operating activities－

11

1,017,422
319,372
25,346-77,110-161-180,197-10,100
387-5,146
109536,995-376,233-6,659-47,133-85,506-153,530
42,62466,752-18,927-107,448-1,038-11,082
928,7315,136-567,743
366,124－(Thousands of yen)Interim Period of the Previous Year
(October 1, 2007 to March 31, 2008)
AmountⅡ Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of leased assets
Proceeds from sales of leased assets
Payments for guarantee deposits
Other
Net cash provided by (used in) investment activities
Ⅲ Net cash provided by (used in) financing activities
Cash dividends paid
Net cash provided by (used in) financing activities
Ⅳ Net decrease in cash and cash equivalents
Ⅴ Opening balance of cash and cash equivalents
Ⅵ Closing balance of cash and cash equivalents－-195,562-265,221-222,550
162,750-50,112-856-571,552-154,442-154,442-359,870
3,643,351
3,283,48112－

6. Other information
Goods Manufactured, Orders Received and Sales（1） Breakdown of goods manufactured
First half ended March 31, 2008
Amount(%)

First half ended March 31, 2009
Amount(%)

2,589,721
42.0
3,357,562
44.9
Diagnostic drugs
1,819,187
29.5
1,967,284
26.3
Hormone drugs
642,58510.4
580,405
7.8
Circulatory drugs
302,9524.9
431,615
5.8
Antibiotics & Chemotherapeutics
163,002
2.6
173,097
2.3
Urogenital & genital organ drugs
93,534
1.5
108,058
1.4
Dermatological preparation
561,206
9.1
861,990
11.5
Other
Total
6,172,191
100.0
7,480,014
100.0(Notes): 1. The above amounts are calculated based on selling prices and do not include consumption taxes.
(Notes): 2. Fractions less than one thousand yen are omitted.

YoY
Change
(%)
29.6
8.1
-9.7
42.5
6.2
15.5
53.6
21.2

（2） Breakdown of goods purchased
First half ended March 31, 2008
Amount(%)

First half ended March 31, 2009
Amount(%)

306,01580.0
279,508
64.3
In vitro diagnostics
16,847
4.4
64,251
14.8
Hormone drugs
29,010
7.6
29,329
6.7
Dermatological preparation
3,499
0.9
Antibiotics & Chemotherapeutics
26,924
7.1
61,691
14.2
Other
Total
382,297100.0
434,781100.0(Notes): 1. The above amounts are calculated based on selling prices and do not include consumption taxes.
(Notes): 2. Fractions less than one thousand yen are omitted.
（3） Manufacturing based on orders received
The Company manufactures products not on the build-to-order basis, but on the sales projection basis.

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13

－

YoY
Change
(%)
-8.7
281.4
1.1
129.1
13.7

（4） Breakdown of sales
First half ended March 31, 2008
Amount(%)

First half ended March 31, 2009
Amount(%)

Goods manufactured
3,021,209
39.9
2,515,400
36.8
Diagnostic drugs
1,812,041
1,779,277
26.0
23.9
Hormone drugs
591,197
8.6
567,537
7.5
Circulatory drugs
306,184
4.5
290,935
3.8
Antibiotics & Chemotherapeutics
148,126
2.2
174,621
2.3
Urogenital & genital organ drugs
1.2
106,706
1.6
89,838
Dermatological preparation
725,366
10.6
723,098
9.5
Other
6,172,259
90.2
6,679,282
88.1
Sub total
Goods purchased
515,798
7.5
480,151
6.3
In vitro diagnostics
16,9890.7
274,908
3.6
Hormone drugs
49,4700.2
42,655
0.6
Dermatological preparation
5,861
0.1
4,676
0.1
Antibiotics & Chemotherapeutics
79,528
1.2
99,930
1.3
Other667,646
9.8
902,32111.9
Sub total
6,839,906
100.0
7,581,604
100.0
Total
(Notes): 1. The above amounts are calculated based on selling prices and do not include consumption taxes.
(Notes): 2. Fractions less than one thousand yen are omitted.

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14

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YoY Change
(%)

20.1
1.8
-4.0
-5.0
17.9
-15.8
-0.3
8.2
-6.9
1518.1
-13.8
-20.2
25.7
35.1
10.8