Consolidated Financial Results for the Fiscal Year Ended February 28, 2021
[Japanese GAAP]
April 8, 2021
Company name:

Hisamitsu Pharmaceutical Co., Inc.

Stock exchange listing:Tokyo, Nagoya, Fukuoka

Securities code:

4530

URL:

https://global.hisamitsu/

Representative:

NAKATOMI Kazuhide, President & CEO

Contact

TAKAO Shinichiro, Managing Director & Executive Officer, Management of Public Relations,
Investor Relatoions

TEL:+81-3-5293-1704

Scheduled date of Annual General Meeting of Shareholders:

May 27, 2021

Scheduled date of dividend payment:

May 28, 2021

Scheduled date of filing annual securities report:

May 28, 2021

Preparation of supplementary materials for financial results:

Yes

Holding of annual financial results meeting:Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest millions of yen)

1. Consolidated Financial Results for the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)(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%

Fiscal year 2021

114,510△18.8

10,671△53.0

11,829

△53.8

9,250

△50.5

Fiscal year 2020

140,992△1.7

22,7272.0

25,6284.0

18,694△2.7(Note) Comprehensive income:Fiscal year 2021

9,926 millions of yen ( △26.3%)

Fiscal year 2020

13,478 millions of yen ( △15.6%)

Diluted profit pershare

Profit per share

Return on equity

Ordinary profit on
total assets

Operating profit tonet sales

yenyen%%%Fiscal year 2021

113.22113.11

3.7

3.9

9.3

Fiscal year 2020

227.58227.307.5

8.516.1(Reference) Share of loss (profit) of entities accounted for using equity method:

Fiscal year 2021

133 millions of yen

Fiscal year 2020

786 millions of yen(2) Consolidated Financial Position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

Millions of yen

Millions of yen%Yen

Fiscal year 2021

299,861

253,809

84.1

3,083.98

Fiscal year 2020

307,401

250,74680.9

3,046.45(Reference) Shareholders’ equity:

Fiscal year 2021

252,066 millions of yen

Fiscal year 2020

248,784 millions of yen(3) Consolidated Cash FlowsCash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofperiod

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal year 2021

5,289

7,815

△7,18791,354

Fiscal year 2020

27,395△17,229△11,726

86,996

2. Dividends
Annual dividends
FirstSecond

Third

Fouth

quarterquarterquarterquarter

Total

Total
dividends

Payout ratio(consolidated)

Dividends tonet assets(consolidate)yenyenyen

yenyenMillions of yen%%

Fiscal year 2020

―41.50―

41.50

83.00

6,809

36.5

2.8

Fiscal year 2021

―

41.75

―

41.75

83.50

6,827

73.8

2.7

Fiscal year 2022
(Forecast)

―

42.00

―

42.00

84.00

69.3

3. Consolidated Earnings Forecast for the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)(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

122,900

7.3

10,7000.3

12,7007.4

9,9007.0121.16

*Notes(1) Changes in significant subsidiaries during the period(Chages in specified subsidiaries resulting in changes in scope of consolidation): None(2) 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(3) The number of shares outstanding (common stock)1) Total number of shares outstanding at the end of the period (including treasury stock)
Fiscal year 2021:
85,164,895 sharesFiscal year 2020:
85,164,895 shares2) Total number of treasury stock at the end of the period
Fiscal year 2021:
3,430,483 sharesFiscal year 2020:
3,501,310 shares
3) Average number of shares outstanding during the period
Fiscal year 2021:
81,707,440 sharesFiscal year 2020:
82,143,061 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2021
(March 1, 2020 to February 28, 2021)(1) Non-consolidated Operating Results(Percentages represent year-on-year changes)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Fiscal year 2021
Fiscal year 2020

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

86,694
109,761

△21.0
0.5

9,438
20,312△53.5
14.2

10,37221,501

△51.8
8.0

8,342
15,074△44.7△5.5

Profit per share
Fiscal year 2021
Fiscal year 2020

Diluted profit per share
yenyen102.07183.45101.97183.23(2) Non-consolidated Financial Position
Total assets

Net assetsShareholders’ equity
ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

Fiscal year 2021
Fiscal year 2020

264,138
266,073

231,247
225,57987.5
84.6

2,825.43
2,755.32(Reference) Shareholders’ equity:

Fiscal year 2021

231,015 millions of yen

Fiscal year 2020

225,087 millions of yen*Financial results reports are not subjected to audit.
*Explanation for appropriate use of financial forecasts and other special notes
The forecasts and other forward looking statements contained in this summary are based on the information currently
available to the Company and certain assumptions considered reasonable by the Company. Therefore, they are notguaranteed to be achieved by the Company. As a result, the forecasts of operating results may differ significantly from theactual operating results due to various factors.

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

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

Current Fiscal Year End(As of Feb. 28, 2021)

AssetsCurrent assets
Cash and deposits

107,051

114,254

Notes and accounts receivable - trade49,23239,546

Securities

34,87821,743Merchandise and finished goods

8,816

11,359

505

465

6,137

6,744

Work in process
Raw materials and supplies
Other

2,952

4,290

Allowance for doubtful accounts

△325

△343

209,251

198,061

45,76446,059△30,824△31,879

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

14,93914,180Machinery, equipment and vehicles

41,251

41,798△34,617△35,636

6,633

6,162

Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net

11,774

11,838△9,796△9,761

1,978

2,077

12,34011,897

498

598

△314

△384

184

214

Construction in progress

2,520

2,822

Total property, plant and equipment

38,59637,35448

27

Intangible assets
Sales rights
Software

113

206

Other

1,308

944

Total intangible assets

1,469

1,178

Investment securities

48,37954,602

Net defined benefit asset

3,653

3,895

Investments and other assets

Deferred tax assets

1,287

1,047

Other4,976

3,935

Allowance for doubtful accounts△214△214

Total investments and other assets
Total non-current assets
Total assets

58,08363,267

98,150101,800

307,401

299,861(Millions of yen)

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

Current Fiscal Year End(As of Feb. 28, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade

10,488

7,672

Electronically recorded obligations - operating

8,536

7,127

Short-term loans payable

1,209

1,111

68

101

Accounts payable - other

7,865

6,634

Income taxes payable

5,745

608

Lease obligations

Provision for sales returns

127

103

Provision for bonuses

1,558

1,350

Other

5,456

5,346

Total current liabilities

41,05530,057Long-term loans payable

368

296

Lease obligations

13094

Deferred tax liabilities for land revaluation

1,660

1,660

Deferred tax liabilities

1,318

3,465

Net defined benefit liability

7,600

7,928

Other

4,521

2,548

Total non-current liabilities

15,59815,99456,65446,051

8,473

8,473

Non-current liabilities

Total liabilities
Net assets
Shareholders' equity
Capital stockCapital surplus

2,272

2,352

Retained earnings

230,929

233,376

Treasury shares△11,730△11,495

Total shareholders' equity

229,945

232,707

12,047

16,165

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land

3,790

3,790

Foreign currency translation adjustment

2,700△1,173Remeasurements of defined benefit plans

299

575

18,83819,359491

232

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

1,4701,510

250,746

253,809

307,401

299,861(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2019 – Feb. 29 2020) (Mar. 1, 2020 – Feb. 28 2021)

Net sales

140,992

114,510

Cost of sales

53,38845,337Gross profit

87,603

69,173

Selling, general and administrative expenses

64,87558,501

Operating profit

22,727

10,671

Interest income

1,142

563

Dividend income

811

843

Share of profit of entities accounted for using equity method

786

133

Other425

520

3,1652,061

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses

1910

Foreign exchange losses

149542

Loss on cancellation of insurance policies

―

244

Other

95

106

Total non-operating expenses

264

903

25,628

11,829Ordinary profit
Extraordinary income
Gain on disposal of non-current assets

74

218

Gain on sales of investment securities―

188

National subsidies―

2

Settlement received

1,611

―

Total extraordinary income

1,685

408

Loss on disposal of non-current assets

2840

Loss on valuation of investment securities

176―Impairment loss

953―

Extraordinary losses

Total extraordinary losses

1,159

40

26,155

12,197

Income taxes - current

7,999

2,382

Income taxes - deferred△755381

Profit before income taxes

Total income taxes

7,244

2,764

Profit18,911

9,433

217

182

18,694

9,250

Profit attributable to non-controlling interests
Profit attributable to owners of parent(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2019 – Feb. 29 2020) (Mar. 1, 2020 – Feb. 28 2021)

Profit18,911

9,433△4,993

4,070

△867

△3,901Remeasurements of defined benefit plans, net of tax

398

277

Share of other comprehensive income of entities accounted forusing equity method

30

46△5,432492

13,478

9,926

13,248

9,771

230

154

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

(3) Consolidated Statements of Changes in Shareholders’ Equity
For the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)(Millions of yen)

Shareholders’ equity
Capitalsurplus

Capital stock
Balance at March 1, 2019
Cumulative effects of changes inaccounting policies

8,473

Restated balance

8,473

Retainedearnings

5,914

249,156

Total
shareholders’equityTreasuryshares△40,886

222,657△55
5,914

249,100△55△40,886

222,602

Changes in items during period
Dividends of surplus△6,830△6,830

Profit attributable to owners of parent

18,694

18,694△4,520Purchase of treasury shares△4,520

Disposal of treasury shares―△33,675

Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity
Total changes of items during period

30,03433,675―△30,034――

Balance at February 29, 2020―

△3,641△18,170

29,155

7,343

8,473

2,272

230,929△11,730

229,945(Millions of yen)

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve for
sale
land
securities

Balance at March 1, 2019
Cumulative effects of changes inaccounting policies
Restated balance

17,0093,790

TotalShare
Foreign
Remeasureaccumulated acquisition
currency
ments ofotherrights
translation
definedcomprehensiadjustment benefit plans
ve income

3,581

△97

24,284392

Noncontrollinginterests

Total net
assets

1,295

248,629△55

17,009

3,790

3,581

△97

24,284

392

1,295

248,574

Changes in items during period
Dividends of surplus△6,830

Profit attributable to owners of parent

18,694Purchase of treasury shares△4,520

Disposal of treasury shares―

Cancellation of treasury shares
Transfer from retained earnings tocapital surplusNet changes in items other thanshareholders’ equity
Total changes of items during period
Balance at February 29, 2020――
△4,961―△880

396△5,44599

175△5,170△4,961―△880

396△5,445

99

175

2,172

12,047

3,790

2,700

299

18,838491

1,470

250,746

For the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)(Millions of yen)

Shareholders’ equity
Capitalsurplus

Capital stock
Balance at March 1, 2020
Cumulative effects of changes inaccounting policies
Restated balance

8,473

Retainedearnings

2,272

Treasuryshares

230,929△11,730

Total
shareholders’equity
229,945
―

8,473

2,272

230,929△11,730

229,945

Changes in items during period
Dividends of surplus
Profit attributable to owners of parent△6,803△6,803

9,250

9,250

Purchase of treasury shares
Disposal of treasury shares79△5△5240320

Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity―――

Total changes of items during period
Balance at February 28, 2021―

792,447

234

2,762

8,4732,352

233,376△11,495

232,707(Millions of yen)

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve for
sale
land
securities

Balance at March 1, 2020
Cumulative effects of changes inaccounting policies

12,047

Restated balance

12,047

3,790

Total
Share
Foreign
Remeasureaccumulated acquisition
currency
ments ofotherrights
translation
definedcomprehensiadjustment benefit plans
ve income

2,700

299

18,838491

Noncontrollinginterests

Total net
assets

1,470

250,746
―

3,790

2,700

299

18,838491

1,470

250,746Changes in items during period△6,803

Dividends of surplus
Profit attributable to owners of parent

9,250

Purchase of treasury shares△5Disposal of treasury shares

320

Cancellation of treasury shares
Transfer from retained earnings tocapital surplus
Net changes in items other thanshareholders’ equity
Total changes of items during period
Balance at February 28, 2021――
4,118―△3,873

276

520

△259

39

300

4,118―△3,873276520

△259

39

3,062

16,1653,790△1,173575

19,359232

1,510253,809

(4) Consolidated Statements of Cash Flows
Year ended February 29, 2020 and February 28, 2021
(Millions of yen)

Prior Fiscal Year
Current Fiscal Year
(Mar. 1, 2019 – Feb. 29 2020) (Mar. 1, 2020 – Feb. 28 2021)

Cash flows from operating activities
Profit before income taxes

26,155

12,197

Depreciation

4,251

4,079

Impairment loss
Increase (decrease) in net defined benefit liability

953―

119336

Increase (decrease) in provision for bonuses△62△182

26

28

Increase (decrease) in allowance for doubtful accounts

25△24△1,954△1,406

Loss (gain) on cancellation of insurance policies―244

Interest expenses

1910Foreign exchange losses (gains)△4084

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

△786

△133―

△188

Increase (decrease) in provision for sales returns
Interest and dividend income

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

176―

Loss (gain) on disposal of non-current assets

△45

△177

Subsidy income
Decrease (increase) in notes and accounts receivable - trade―△2△9,422

8,955232△4,325

1,742△1,507

Increase (decrease) in notes and accounts payable - trade

4,944△3,812

Increase (decrease) in other current liabilities

1,008△1,864

Other, net

970

△701

Subtotal

28,315

11,609Interest and dividend income received

2,041

1,734

Decrease (increase) in inventories
Decrease (increase) in other current assets

Interest expenses paid
Income taxes paid
Payments of retirement benefits for directors (and other officers)
Net cash provided by (used in) operating activities

△19

△9

△2,941△7,320―△724

27,3955,289

(Millions of yen)

Prior Fiscal Year
Current Fiscal Year(Mar. 1, 2019 – Feb. 29 2020) (Mar. 1, 2020 – Feb. 28 2021)

Cash flows from investing activities
Decrease (increase) in time deposits
Decrease (increase) in long-term time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets△3,128△178676―△3,698△3,34174642△28△47

Decrease (increase) in short-term investment securities△9,514

9,715

Purchase of investment securities△1,615△191

Proceeds from sales and redemption of investment securities―258

Collection of loans receivable
Proceeds from cancellation of insurance funds

62―953

Subsidies received―2△17,229

7,815

△150

△100

Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of long-term loans payable

△67

△69

Dividends paid to non-controlling interests

△54

△115

Purchase of treasury shares△4,520△2

Cash dividends paid

△6,836△6,806

Other, net
Net cash provided by (used in) financing activities

△97

△94

△11,726△7,187△225△1,559

Net increase (decrease) in cash and cash equivalents△1,786

4,357

Cash and cash equivalents at beginning of period

88,782

86,996

Cash and cash equivalents at end of period

86,99691,354

Effect of exchange rate change on cash and cash equivalents