Hisamitsu Pharmaceutical : Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 28, 2022

(Percentages represent year-on-yearchanges)

Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 28, 2022

[Japanese GAAP]

	October 14, 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:	[phone]

Scheduled date of filing quarterly securities report:	Oct. 14, 2021
Scheduled date of dividend payment:	Nov. 11, 2021
Preparation of supplementary materials for quarterly financial results:	Yes
Holding of quarterly 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 Second Quarter of the Fiscal Year Ending February 28, 2022 (March 1, 2021 to August 31, 2021)

(1) Consolidated Operating Results

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended Aug. 31, 2021

58,551

10.6

5,706

3.5

6,836

23.9

5,002

35.4

Six months ended Aug. 31, 2020

52,926

16.5

5,516

45.9

5,519

48.1

3,693

51.1

(Note) Comprehensive income:

△

△

△

△

10,156

Six months ended Aug. 31, 2021

millions of yen (80.6%)

Six months ended Aug. 31, 2020

5,625 millions of yen (533.7%)

Profit per share

Diluted profit per

share

yen

yen

Six months ended Aug. 31, 2021

61.20

61.16

Six months ended Aug. 31, 2020

45.22

45.16

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders'

equity ratio

Millions of yen

Millions of yen

%

As of Aug. 31, 2021

309,583

260,536

83.6

As of Feb. 28, 2021

299,861

253,809

84.1

(Reference) Shareholders' equity:

As of Aug. 31, 2021

258,686 millions of yen

As of Feb. 28, 2021

252,066 millions of yen

2. Dividends

Annual dividends

First quarter

Second quarter

Third quarter

Fiscal year end

Total

yen

yen

yen

yen

yen

Year ended Feb. 28, 2021

―

41.75

―

41.75

83.50

Year ending Feb. 28, 2022

―

42.00

Year ending Feb. 28, 2022

―

42.00

84.00

(Forecast)

(Note) Revisions to the most recently announced dividends forecast:

No

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

(Percentages represent year-on-year changes)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per share
		owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	yen
Full year	122,900		7.3	10,700	0.3	12,700	7.4	9,900	7.0	121.12
(Note) Revisions to the most recently announced consolidated forecast:	No

*Notes

1. Changes in significant subsidiaries during the period
   (Chages in specified subsidiaries resulting in changes in scope of consolidation)
2. Apprication of special accounting methods for preparation of quarterly consolidated financial statements
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 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
5. The number of shares outstanding (common stock)
6. 1. Total number of shares outstanding at the end of the period (including treasury stock)

As of Aug. 31, 2021	: 85,164,895 shares
As of Feb. 28, 2021	: 85,164,895 shares
2) Total number of treasury stock at the end of the period
As of Aug. 31, 2021	: 3,426,856 shares
As of Feb. 28, 2021	: 3,430,483 shares
3) Average number of shares outstanding during the period
Six months ended Aug. 31, 2021	: 81,736,248 shares
Six months ended Aug. 31, 2020	: 81,680,265 shares

*Quarterly financial results reports are not subjected to quarterly review.

• None
• Yes
• Yes
• None
• None
• None

*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 14, 2021. Presentation materials 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	Current Second Quarter
	(As of Feb. 28, 2021)	(As of Aug. 31, 2021)
Assets
Current assets
Cash and deposits	114,254	125,682
Notes and accounts receivable - trade	39,546	34,102
Securities	21,743	22,763
Merchandise and finished goods	11,359	10,111
Work in process	465	569
Raw materials and supplies	6,744	6,867
Other	4,290	6,349
Allowance for doubtful accounts	343	385
Total current assets	198,061	206,060
△	△
Non-current assets
Property, plant and equipment
Buildings and structures, net	14,180	13,940
Other, net	23,174	24,427
Total property, plant and equipment	37,354	38,368
Intangible assets
Sales rights	27	17
Other	1,150	1,485
Total intangible assets	1,178	1,503
Investments and other assets
Investment securities	54,602	54,948
Other	8,878	8,916
Allowance for doubtful accounts	214	214
Total investments and other assets	63,267	63,651
△	△
Total non-current assets	101,800	103,522
Total assets	299,861	309,583

			(Millions of yen)
		Prior Fiscal Year End	Current Second Quarter
		(As of Feb. 28, 2021)	(As of Aug. 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade	7,672	7,875
Electronically recorded obligations - operating	7,127	5,836
Short-term loans payable	1,111	1,111
Income taxes payable	608	1,964
Provision for sales returns	103	116
Provision for bonuses	1,350	1,229
Other	12,082	13,588
Total current liabilities	30,057	31,722
Non-current liabilities
Long-term loans payable	296	254
Net defined benefit liability	7,928	8,064
Other	7,769	9,004
Total non-current liabilities	15,994	17,324
Total liabilities	46,051	49,046
Net assets
Shareholders' equity
Capital stock	8,473	8,473
Capital surplus	2,352	2,356
Retained earnings	233,376	234,971
Treasury shares	11,495	11,484
Total shareholders' equity	232,707	234,317
△	△
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	16,165	17,026
Revaluation reserve for land	3,790	3,784
Foreign currency translation adjustment	1,173	3,105
Remeasurements of defined benefit plans	△ 575	451
Total accumulated other comprehensive income	19,359	24,369
Share acquisition rights	232	234
Non-controlling interests	1,510	1,614
Total net assets	253,809	260,536
Total liabilities and net assets		299,861	309,583

1. Quarterly Consolidated Statements of Income and Comprehensive Income
   Quarterly Consolidated Statements of Income

			(Millions of yen)
		Prior Fiscal Year	Current Fiscal Year
		(Mar. 1, 2020 - Aug. 31, 2020)	(Mar. 1, 2021 - Aug. 31, 2021)
Net sales	52,926	58,551
Cost of sales	19,577	23,120
Gross profit	33,349	35,430
Selling, general and administrative expenses	27,833	29,723
Operating profit	5,516	5,706
Non-operating income
Interest income	430	79
Dividend income	463	479
Foreign exchange gains	―	526
Other	181	270
Total non-operating income	1,074	1,356
Non-operating expenses
Interest expenses	2	6
Foreign exchange losses	745	―
Share of loss of entities accounted for using equity method	259	151
Other	63	67
Total non-operating expenses	1,071	226
Ordinary profit	5,519	6,836
Extraordinary income
Gain on disposal of non-current assets	―	6
Gain on sales of investment securities	1	652
Total extraordinary income	1	659
Extraordinary losses
Loss on disposal of non-current assets	5	48
Loss on discontinuation of sale	―	279
Total extraordinary losses	5	328
Profit before income taxes	5,515	7,168
Income taxes	1,702	2,022
Profit	3,813	5,145
Profit attributable to non-controlling interests	119	143
Profit attributable to owners of parent		3,693	5,002