Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 28, 2021
[Japanese GAAP]
October 8, 2020
Company name:

Hisamitsu Pharmaceutical Co., Inc.

Stock exchange listing:Tokyo, Nagoya, Fukuoka

Securities code:

4530

URL:

https://www.hisamitsu.co.jp/

Representative:

NAKATOMI Kazuhide, President & CEO

Contact

TAKAO Shinichiro, Managing Director & Executive Officer, Head of Investor Relations Department

TEL:+81-3-5293-1704

Scheduled date of filing quarterly securities report:
Scheduled date of dividend payment:

October 9, 2020

Preparation of supplementary materials for quarterly financial results:

Yes

Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)

November 5, 2020

(Amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 28, 2021
(March 1, 2020 to August 31, 2020)(1) Consolidated Operating Results(Percentages represent year-on-year changes)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Six months ended August 31, 2020

52,926

△16.5

5,516

△45.9

5,519

△48.1

3,693

△51.1

Six months ended August 31, 2019

63,401△8.6

10,190△9.4

10,641

△11.4

7,548

△17.6

(Note) Comprehensive income:Six months ended August 31, 2020

5,625 millions of yen (533.7 %)Six months ended August 31, 2019

887 millions of yen (△89.3 %)Diluted profit pershare

Profit per share
yenyenSix months ended August 31, 2020

45.22

45.16

Six months ended August 31, 2019

91.37

91.27

(2) Consolidated Financial Position
Total assets

Shareholders’equity ratio

Net assets

Millions of yen

Millions of yen%

As of August 31, 2020

298,939

252,906

84.0

As of February 29, 2020

307,401

250,746

80.9(Reference) Shareholders’ equity:

As of August 31, 2020

251,233 millions of yen

As of February 29, 2020

248,784 millions of yen

2. Dividends
Annual dividends
First quarter

Second quarter

Third quarter

Fiscal year end

Totalyenyenyenyenyen

Year ended February 29, 2020

―

41.50

―

41.50

83.00

Year ending February 28, 2021
Year ending February 28, 2021
(Forecast)―41.75―41.7583.50(Note) Revisions to the most recently announced dividends forecast:None

3. Consolidated Earnings Forecast for the Fiscal Year Ending February 28, 2021 (March 1, 2020 to February 28, 2021)(Percentages represent year-on-year changes)

Net sales

Full year

Operating profit

Profit attributable toowners of parent

Ordinary profit

Profit per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%yen

127,000△9.9

12,900△43.2

14,800△42.3

10,600△43.3

129.77(Note) Revisions to the most recently announced consolidated forecast:None*Notes(1) Changes in significant subsidiaries during the period(Chages in specified subsidiaries resulting in changes in scope of consolidation): None(2) Apprication of special accounting methods for preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revision of accounting standards
2) Changes in accounting policies other than 1) above
3) Changes in accounting estimates
4) Restatement: None: None: None: None

(4) The number of shares outstanding (common stock)1) Total number of shares outstanding at the end of the period (including treasury stock)
As of August 31, 2020
: 85,164,895 shares
As of February 29, 2020
: 85,164,895 shares2) Total number of treasury stock at the end of the period
As of August 31, 2020
: 3,430,120 shares
As of February 29, 2020
: 3,501,310 shares
3) Average number of shares outstanding during the period
Six months ended August 31, 2020
: 81,680,265 shares
Six months ended August 31, 2019
: 82,613,971 shares*Quarterly financial results reports are not subjected to quarterly review.
*Explanation for appropriate use of financial forecasts and other special notes
Among this document, the forecasts based on the plan may changes due to uncertain factors. Therefore, the actual
operating results may differ from the company's view.
Financial settlement briefings for institutional investors and analysts will be held on October 8, 2020. Presentationmaterials of financial results will be posted promptly on the company’s website after the financial settlement briefings.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance sheets(Millions of yen)

Prior Fiscal Year End(As of Feb. 29, 2020)

Current Second Quarter(As of Aug. 31, 2020)

AssetsCurrent assets
Cash and deposits

107,051

117,039

Notes and accounts receivable - trade49,232

31,955

Securities

34,87822,281

Merchandise and finished goods

8,816

12,298

505

648

6,137

6,566

Work in process
Raw materials and supplies
Other

2,952

6,928

Allowance for doubtful accounts

△325

△273

209,251

197,445

Buildings and structures, net

14,93914,631Other, net

23,65723,515

Total property, plant and equipment

38,59638,147

48

37

Other

1,421

1,440

Total intangible assets

1,469

1,478

Investment securities

48,37952,775

Other

9,918

9,306

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Sales rights

Investments and other assets

Allowance for doubtful accounts

△214

△214

Total investments and other assets

58,083

61,86898,150101,494

307,401

298,939

Total non-current assets
Total assets

(Millions of yen)

Prior Fiscal Year End(As of Feb. 29, 2020)

Current Second Quarter(As of Aug. 31, 2020)

Liabilities
Current liabilities
Notes and accounts payable - trade

10,488

6,798Electronically recorded obligations - operating

8,536

6,575

Short-term borrowings

1,209

1,191

Income taxes payable

5,745

1,768

Provision for sales returns
Provision for bonuses

127

81

1,558

1,159

Other

13,39013,140Total current liabilities

41,05530,714

368

326

7,600

7,754

Non-current liabilities
Long-term borrowings
Net defined benefit liability
Other

7,630

7,238

Total non-current liabilities

15,59815,31856,65446,0338,473

8,473

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

2,272

2,352

Retained earnings

230,929

231,232

Treasury shares△11,730△11,493

Total shareholders' equity

229,945

230,565

Valuation and translation adjustments
Valuation difference on available-for-sale securities

12,047

15,341

Revaluation reserve for land

3,790

3,790

Foreign currency translation adjustment

2,700

1,142

Remeasurements of defined benefit plans

299

393

18,83820,667

Share acquisition rights

Total accumulated other comprehensive income

491

213Non-controlling interests

1,470

1,458

Total net assets
Total liabilities and net assets

250,746

252,906

307,401

298,939

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2019 – Aug. 31, 2019) (Mar. 1, 2020 – Aug. 31 2020)

Net sales

63,401

52,926

Cost of sales

22,892

19,577Gross profit

40,50933,349Selling, general and administrative expenses

30,31927,833Operating profit

10,1905,516Interest income

520

430

Dividend income436463Non-operating income

Other
Total non-operating income

225

181

1,182

1,074

82

Non-operating expenses
Interest expenses
Foreign exchange losses

595

745

Share of loss of entities accounted for using equity method

110259

Other

1563

Total non-operating expenses

730

1,071

10,641

5,519

Gain on sales of investment securities―

1

Total extraordinary income―

1Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets

45

Total extraordinary losses

45Profit before income taxes

10,637

5,515

Income taxes2,955

1,702

Profit

7,681

3,813

Profit attributable to non-controlling interests
Profit attributable to owners of parent

133

119

7,548

3,693

Quarterly Consolidated Statements of comprehensive income(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2019 – Aug. 31, 2019) (Mar. 1, 2020 – Aug. 31 2020)

Profit

7,681

3,813

Valuation difference on available-for-sale securities△5,0133,319

Foreign currency translation adjustment△1,830△1,5746597△15△30△6,793

1,812

887

5,625

Comprehensive income attributable to owners of parent

7555,522

Comprehensive income attributable to non-controlling interests

132102Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2019 – Aug. 31, 2019) (Mar. 1, 2019 – Aug. 31 2020)

Cash flows from operating activities
Profit before income taxes

10,637

5,515

Depreciation

2,0251,934

Increase (decrease) in retirement benefit liability

52159

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

13△45△956△893

Interest expenses
Share of loss (profit) of entities accounted for using equity method

82110259―△1△1,817

16,843

Decrease (increase) in inventories△578△4,661

Increase (decrease) in trade payables

2,823△5,239Other, net△4,698△4,924

Subtotal

7,621

8,949

Interest and dividends received

1,004

1,134

△8△1△703△5,200―

△724

7,913

4,156

△2,925429

Loss (gain) on sales of investment securities
Decrease (increase) in trade receivables

Interest paid
Income taxes paid
Payments of retirement benefits for directors (and other officers)
Net cash provided by (used in) investing activities
Cash flows from investing activities
Decrease (increase) in time deposits
Decrease (increase) in short-term investment securities
Purchase of property, plant and equipment

913

10,339△1,983△2,365Purchase of intangible assets△13△75Purchase of investment securities

△655

△186

Proceeds from sales of investment securities―2Other, net

656△4,6558,198△75△20Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Repayments of long-term borrowings△32△39Purchase of treasury shares△1,280△0Dividends paid

△3,412△3,393△54△115

Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities△26△43△4,880△3,612△813△480

Net increase (decrease) in cash and cash equivalents△2,4368,261

Cash and cash equivalents at beginning of period

88,782

86,996

Cash and cash equivalents at end of period

86,34595,258

Effect of exchange rate change on cash and cash equivalents