Fuji Pharma Co., Ltd. (4554) Non-consolidated Financial Results for the First Quarter of FY9/11

Non-consolidated Financial Results
for the First Quarter of the Fiscal Year Ending September 30, 2011
(Three Months Ended December 31, 2010)[Japanese GAAP]
January 31, 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:
February 14, 2011
Scheduled start date of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: None
(All amounts are rounded down to the nearest million yen)

1. Financial Results for the First Quarter (October 1, 2010 to December 31, 2010) of the Fiscal Year Ending
September 30, 2011
(1) Operating results(Percentages represent year-on-year changes)
Net sales
Three months ended Dec. 31, 2010
Three months ended Dec. 31, 2009

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

5,487
5,224

5.0
33.7

953
943

1.1
73.0

954
946

0.9
72.7

561
570

(1.5)
99.8

Net income per
share

Diluted net income
per share

Yen

Yen

Three months ended Dec. 31, 2010
Three months ended Dec. 31, 2009

43.66
44.33

-

(2) Financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

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

25,82824,72318,181
17,833
Dec. 31, 2010: 18,181

70.4
72.1
Sep. 30, 2010:

1,412.69
1,385.65
17,833

2. Dividends
1Q-endYen

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

Dividend per share
3Q-endYearend

2Q-end
Yen

-

Yen

Yen

Total
Yen

13.00

-

17.00

30.00

17.00

-

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%

First half
10,775 12.6
1,372 (14.8)
Full year
22,457 14.0
3,476
7.5
Note: Revision of earnings forecasts during the period: None

Ordinary income
Millions of yen

1,371
3,471

%

(15.1)
7.0(Percentages represent year-on-year changes)
Net income
Net income per share
Millions of yen

845
2,141

%

(13.0)
10.1

Yen

65.66
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: Yes
Note: Changes in accounting principles, procedures, presentation methods, etc. for presenting quarterly non-consolidated
financial statements described in “Changes in the Significant Accounting Policies for the Preparation of Quarterly
Non-consolidated Financial Statements”(3) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding as of the end of period (including treasury stock)

Dec. 31, 2010:

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

Dec. 31, 2010:10 shares

3) Average number of shares issued during the period
Three months ended Dec. 31, 2010:

12,869,990 shares

Three months ended Dec. 31, 2009:

12,869,990 shares* Information regarding the implementation of quarterly review procedures
The current quarterly non-consolidated financial statements are exempted from quarterly review procedures based on the Financial
Instruments and Exchange Law. At the time of disclosure, we have not completed the review process for these quarterly
non-consolidated financial statements.
* Cautionary statement with respect to forward-looking statements
Notations regarding the future, including performance outlook contained in these materials are based on information currently
available at the Company and certain assumptions that are deemed to be reasonable and it is possible that the actual performanceand the like may vary significantly due to variety of factors. For the assumptions upon which earnings forecasts are based andprecautionary statements regarding their use, please refer to “Qualitative Information Regarding Earnings Forecasts” on page 3 ofthe attached documents.

Fuji Pharma Co., Ltd. (4554) Non-consolidated Financial Results for the First Quarter of FY9/11

Contents of Attachments

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

3(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

6(3) Statements of Cash Flows

7(4) Notes Regarding Assumptions for Company as Ongoing Concern

8(5) Notes Regarding Material Change in Shareholders’ Equity

8

4. Supplementary Information

8(1) Goods Manufactured, Orders Received and Sales

8

1

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

1. Qualitative Information on Quarterly Non-consolidated Financial Performance(1) Qualitative Information Regarding Operating Results
In the first quarter of the current fiscal year, the Japanese economy was supported by higher corporate earnings, mainly
at exporters because of strong demand in emerging countries. However, the outlook for the economy remains unclear.
One reason is concerns about the extended upturn in the yen’s value and the possibility of a downturn in the U.S.
economy. There is also a risk of renewed financial instability, chiefly in Europe.
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).
As a result, net sales increased 5.0% to 5,487 million yen. Operating income was up 1.1% to 953 million yen, ordinary
income climbed 0.9% to 954 million yen and net income decreased 1.5% to 561 million yen.

2

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/11(2) Qualitative Information Regarding Financial Position
Assets, Liabilities and Net Assets
Total assets were 25,828 million yen at the end of the first quarter under review, an increase of 1,104 million yen fromthe end of the previous fiscal year. Net assets increased 347 million yen to 18,181 million yen, resulting in an equity
ratio of 70.4%.
Current assets increased 1,251 million yen mainly because cash and deposits and notes and accounts receivable-trade
increased. Noncurrent assets decreased 147 million yen, which was mainly the result of a decrease in assets caused bydepreciation.
Current liabilities decreased 551 million yen. This was mainly the result of an increase in notes and accounts
payable-trade and decreases in income taxes payable as taxes were paid and in the provision for bonuses as bonuses
were paid. Noncurrent liabilities increased 1,308 million yen mainly because of new long-term loans payable and anincrease in provision for retirement benefits.
Net assets increased 347 million yen because, in retained earnings, quarterly net income more than offset a decrease
from dividend payments.
Cash Flows
Cash and cash equivalents (hereinafter, “Cash”) as of the end of the first quarter under review increased by 2,044
million yen year on year to 3,798 million yen.
The cash flow components during the first quarter and the main reasons for changes are as described below.
i) Cash Flow from Operating Activities
Net cash used in operating activities totaled 281 million yen, compared with 668 million yen in the same periodprevious fiscal year. This was the net result of adding a 499 million yen increase in notes and accounts payable-trade,
223 million yen in depreciation and amortization to the income before income taxes of 943 million yen, which wasoffset by a 930 million yen increase in notes and accounts receivable-trade, income taxes paid of 784 million yen, a 514
million yen decrease in provision for directors’ bonuses, and other factors.
ii) Cash Flow from Investing Activities
Net cash used in investing activities was 112 million yen, compared with 85 million yen in the same period previous
fiscal year, due to purchase of property, plant and equipment of 58 million yen and other factors.
iii) Cash Flow from Financing Activities
Net cash provided by financing activities was 1,094 million yen, compared with 160 million yen used in the same
period previous fiscal year. Although there were cash dividends paid of 205 million yen, there were an increase inlong-term loans payable of 1,300 million yen and other factors.

(3) Qualitative Information Regarding Earnings Forecasts
There are no changes to the forecast for the fiscal year ending September 30, 2011 that was announced on November 9,2010 because first quarter performance was generally in line with the Company’s plan.

3

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

2. Other Information(1) Overview of Application of Simplified Accounting Methods and Special Accounting Methods
1. Simplified accounting methods(i) Method for estimating the uncollectible amount of general receivables
The uncollectible amount of general receivables was estimated using the historical write-off ratio at the end of theprevious fiscal year as the ratio at the end of the first quarter of the current fiscal year was found not to be significantly
different from the ratio at the end of the previous fiscal year.
(ii) Valuation of inventories
For inventories at the end of the first quarter of the current fiscal year, the valuation was determined by using areasonable method based on actual inventories at the end of the previous fiscal year. Physical inventory counts wereomitted. Inventory write-down is based on the current net sales value of items for which profit margins have declined
significantly.
(iii) Depreciation method for noncurrent assets
For assets subject to the declining balance method, depreciation was calculated pro rata based on the amount for the
fiscal year.
2. Special accounting methods in the preparation of quarterly financial statements
Not applicable.
(2) 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 110 thousand yen each and income
before income taxes by 1,231 thousand yen.
2. Reclassifications(Statements of Income)“Compensation income,” included in “Other” under non-operating income in the first quarter of the previous fiscal year,
is reclassified and presented as a separate line item in the first quarter of the current fiscal year, given that it now
exceeds 20/100 of total non-operating income. “Compensation income” included in “Other” under non-operating
income totaled 610 thousand yen in the first quarter of the previous fiscal year.

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

3. Quarterly Non-consolidated Financial Statements(1) Balance Sheets
First quarter of FY9/11(As of Dec. 31, 2010)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and 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
Other
Allowance for doubtful accounts
Total 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
Long-term loans payable
Provision for retirement benefits
Other
Total noncurrent liabilities
Total liabilities
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

5(Thousands of yen)
FY9/10 summary(As of Sep. 30, 2010)

3,293,274
8,617,147
505,000
1,857,853
929,7122,017,774
622,660(2,860)17,840,562

2,592,763
7,686,941
504,910
1,728,477
810,705
2,336,230
931,321(2,557)
16,588,793

2,611,562
3,186,311
5,797,873
1,118,647

2,665,525
3,235,788
5,901,313
1,141,459

1,079,207(7,673)
1,071,533
7,988,055
25,828,618

1,100,067(7,673)
1,092,394
8,135,166
24,723,959

3,830,248
102,006
294,2178,600
12,7591,258,943
5,506,776

3,330,934
804,082
808,722
29,90010,899
1,073,529
6,058,069

1,300,000
576,754
263,836
2,140,590
7,647,367

555,375
277,191
832,567
6,890,636

1,616,950
2,841,587
13,721,011(7)
18,179,541

1,616,950
2,841,587
13,377,833(7)17,836,363

1,709
1,709
18,181,250
25,828,618(3,039)(3,039)17,833,323
24,723,959

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/11(2) Statements of Income(For the Three-month Period)

Net salesFirst three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)(Thousands of yen)First three months of FY9/11(Oct. 1, 2010 – Dec. 31, 2010)

5,224,111

5,487,647

Cost of sales

2,857,438

2,951,422

Gross profit

2,366,673

2,536,224

Selling, general and administrative expenses

1,423,606

1,583,066

943,067

953,158

Operating income
Non-operating income
Interest income

842

415

Dividends income

138

138

Compensation income

-

748

Other

2,386

2,254

Total non-operating income

3,367

3,556

Interest expenses

49

1,087

Depreciation

60

97

Sales discounts

55

640

Non-operating expenses

Other
Total non-operating expenses
Ordinary income

-

269

165

2,094

946,268

954,620

3,982

103

-

10,280-1,120

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on adjustment for changes of accounting standard for asset
retirement obligations
Total extraordinary losses

3,982

11,504

Income before income taxes

942,286

943,116

Income taxes-current

172,81793,653

Income taxes-deferred

198,939

287,495

Total income taxes

371,757

381,148

Net income

570,528

561,968

6

Fuji Pharma Co., Ltd. (4554) Financial Results for the First Quarter of FY9/11(3) Statements of Cash FlowsNet 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
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
Loss (gain) on valuation of investment securities
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, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from collection of guarantee deposits
Other, net

First three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)(Thousands of yen)First three months of FY9/11(Oct. 1, 2010 – Dec. 31, 2010)

942,286
232,886

943,116
223,551

-

1,120

7,724
250
(368,469)(4,700)(4,800)(784)
3,982(840,054)(20,476)(26,708)
68,859(11,995)
30,580(88,092)(67,701)
42
39,475(3,113)
113,839

21,378302(514,504)(21,300)
1,859
(553)
103
10,280(930,205)
70,073(29,944)
57,397(26,060)
29,115499,314286(9,833)32,160(14,069)
160,737

3,033

504,326495(810)(671,001)(668,283)251(1,964)(784,098)(281,485)

100,000(149,740)(55,109)
20,000(428)(58,976)(52,911)(428)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Cash dividends paid

(85,277)(112,315)(160,944)

1,300,000(205,597)

Net cash provided by (used in) financing activities(160,944)

1,094,402

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

700,600

Cash and cash equivalents at beginning of period

2,668,194

3,097,674

Cash and cash equivalents at end of period

1,753,689

3,798,275

7

Fuji Pharma Co., Ltd. (4554) Financial Results for the First 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 three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)
AmountFirst three months of FY9/11(Oct. 1, 2010 – Dec. 31, 2010)%

AmountYoY change (%)%

Diagnostic drugs

2,478,207

52.7

2,310,829

47.7

(6.8)

Hormone drugs

1,062,598

22.6

1,223,170

25.3

15.1

177,5303.8

354,955

7.3

99.9

147,752

3.1

169,8383.5

14.9

138,774

3.0

99,9802.1(28.0)

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

57,996

1.2

72,133

1.5

24.4

638,426

13.6

612,077

12.6

(4.1)

4,701,286

100.0

4,842,986

100.0

3.0

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 three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)
AmountFirst three months of FY9/11(Oct. 1, 2010 – Dec. 31, 2010)%

AmountYoY change (%)%

In vitro diagnostics

305,52959.0

262,79054.2(14.0)

Hormone drugs

190,67736.8

194,024

40.0

1.8

Other

21,8344.2

27,8045.8

27.3

518,040100.0

484,619

100.0

(6.5)

Total

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.

8

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

4) Breakdown of sales(Thousands of yen)
EfficacyFirst three months of FY9/10(Oct. 1, 2009 – Dec. 31, 2009)First three months of FY9/11(Oct. 1, 2010 – Dec. 31, 2010)

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

2,252,226

43.1

2,398,823

43.7

6.5

Hormone drugs

1,061,591

20.3

1,110,824

20.2

4.6

Circulatory drugs

326,915

6.3

268,008

4.9(18.0)

Antibiotics & Chemotherapeutics

178,482

3.4

194,843

3.6

9.2

Urogenital & genital organ drugs

97,9291.9

104,789

1.9

7.0

Dermatological preparations

73,8691.4

74,3791.4

0.7

Others526,72610.1

610,970

11.1

16.0

4,517,741

86.5

4,762,640

86.8

5.4

Hormone drugs

191,6503.7

498,508

9.1

160.1

In vitro diagnostics

461,4268.8

180,818

3.3(60.8)

Subtotal(Merchandise)

Antibiotics & Chemotherapeutics

2,302

0.0

1,950

0.0

(15.3)

Dermatological preparations

1,061

0.0

899

0.0

(15.2)

Others49,9281.0

42,8290.8(14.2)

Subtotal

706,36913.5

725,007

13.2

2.6

Total

5,224,111

100.0

5,487,647

100.0

5.0

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.

9