Hisamitsu Pharmaceutical : Earning Document

(Percentages represent year-on-yearchanges)

Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2023

[Japanese GAAP]

		January 12, 2023
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	MAEGAWA Yoshihiro, Department General Manager of Corporate Strategy Planning and Business
Development
TEL:	[phone]
Scheduled date of filing quarterly securities report:	Jan. 13, 2023
Scheduled date of dividend payment:	―
Preparation of supplementary materials for quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes (for institutional investors and analysts, etc)

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

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2023 (March 1, 2022 to November 30, 2022)

(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	%
Nine months ended Nov. 30, 2022	91,881		6.0	8,506	22.0	13,003	50.1	9,522	53.1
Nine months ended Nov. 30, 2021	86,663		7.2	6,973	14.2	8,665	9.3	6,218	8.7

(Note) Comprehensive income:	Nine months ended Nov. 30, 2022	30,499	millions of yen (226.2%)
	Nine months ended Nov. 30, 2021	△
	9,349 millions of yen (36.2%)
		Profit per share		Diluted profit per
			share
		yen			yen
Nine months ended Nov. 30, 2022	119.46			119.36
Nine months ended Nov. 30, 2021	76.14			76.09

(Note) Beginning with the first quarter of the fiscal year ending on February 28, 2023, the Company has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). All figures for the third quarter incorporate this accounting standard.

(2) Consolidated Financial Position

		Total assets	Net assets	Shareholders'
		equity ratio
		Millions of yen	Millions of yen	%
As of Nov. 30, 2022			336,880	271,829	80.0
As of Feb. 28, 2022			302,858	254,885	83.5
(Reference) Shareholders' equity:	As of Nov. 30, 2022	269,504 millions of yen
	As of Feb. 28, 2022	252,914 millions of yen

(Note) Beginning with the first quarter of the fiscal year ending on February 28, 2023, the Company has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). All figures for the third quarter incorporate this accounting standard.

Ordinary dividend Commemorative dividend

2. Dividends

			Annual dividends
	First quarter	Second quarter	Third quarter
	yen	yen	yen
Year ended Feb. 28, 2022	―	42.00	―
Year ending Feb. 28, 2023	―	42.25	―
Year ending Feb. 28, 2023
(Forecast)

Fiscal year end

yen

42.00

42.25

Total

yen

84.00

84.50

(Note) 1.Revisions to the most recently announced dividends forecast:	No
2. Breakdown of annual dividend forecast for the fiscal year 2023

84.00 yen

0.50 yen (A commemorative dividend for the 175th anniversary)

3. Consolidated Earnings Forecast for the Fiscal Year Ending February 28, 2023(March 1, 2022 to February 28, 2023)

								(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	123,000		2.3	11,100	18.9	12,700	0.5	9,700	0.4	121.68
(Note) 1.Revisions to the most recently announced consolidated forecast:	No

2. Beginning with the first quarter of the fiscal year ending on February 28, 2023, the Company has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). The above consolidated earnings forecast is prepared based on such accounting standards.

*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 Nov. 30, 2022	: 85,164,895 shares
As of Feb. 28, 2022	: 85,164,895 shares
2) Total number of treasury stock at the end of the period
As of Nov. 30, 2022	: 5,665,543 shares
As of Feb. 28, 2022	: 5,427,284 shares
3) Average number of shares outstanding during the period
Nine months ended Nov. 30, 2022	: 79,715,046 shares
Nine months ended Nov. 30, 2021	: 81,670,294 shares

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

*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 January 12, 2023. 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 Third Quarter
				(As of Feb. 28, 2022)	(As of Nov. 30, 2022)
Assets
Current assets
Cash and deposits			129,290		133,994
Notes and accounts receivable - trade	38,505	―
Notes and accounts receivable - trade, and contract assets			―		37,775
Securities	13,141	15,501
Merchandise and finished goods			8,919		11,480
Work in process	438	670
Raw materials and supplies			7,055		8,156
Other	3,219	11,870
Allowance for doubtful accounts			393		297
			200,176
Total current assets		△	△
Non-current assets
Property, plant and equipment
Buildings and structures, net			13,905		14,179
Other, net	25,163	30,273
Total property, plant and equipment			39,069		44,453
Intangible assets
Sales rights			442		406
Other	883	729
Total intangible assets			1,326		1,136
Investments and other assets
Investment securities			52,519		61,728
Other	9,980	10,619
Allowance for doubtful accounts			214		207
			62,286
Total investments and other assets		△	△
Total non-current assets			102,681		117,730
Total assets		302,858	336,880

			(Millions of yen)
		Prior Fiscal Year End	Current Third Quarter
		(As of Feb. 28, 2022)	(As of Nov. 30, 2022)
Liabilities
Current liabilities
Notes and accounts payable - trade	7,533	10,334
Electronically recorded obligations - operating	5,692	6,369
Short-term loans payable	1,071	1,071
Income taxes payable	2,938	2,073
Provision for sales returns	135	―
Provision for bonuses	1,363	530
Other	13,424	31,105
Total current liabilities	32,160	51,485
Non-current liabilities
Long-term loans payable	219	166
Net defined benefit liability	8,216	8,508
Other	7,376	4,891
Total non-current liabilities	15,812	13,566
Total liabilities	47,972	65,051
Net assets
Shareholders' equity
Capital stock	8,473	8,473
Capital surplus	2,356	2,361
Retained earnings	236,192	233,111
Treasury shares	19,527	20,419
Total shareholders' equity	227,495	223,527
△	△
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	15,070	17,953
Revaluation reserve for land	3,641	3,616
Foreign currency translation adjustment	5,633	23,558
Remeasurements of defined benefit plans	1,073	847
Total accumulated other comprehensive income	25,419	45,976
Share acquisition rights	254	250
Non-controlling interests	1,717	2,074
Total net assets	254,885	271,829
Total liabilities and net assets		302,858	336,880

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, 2021 - Nov. 30, 2021)	(Mar. 1, 2022 - Nov. 30, 2022)
Net sales	86,663	91,881
Cost of sales	34,884	39,100
Gross profit	51,779	52,781
Selling, general and administrative expenses	44,805	44,274
Operating profit	6,973	8,506
Non-operating income
Interest income	110	398
Dividend income	595	626
Foreign exchange gains	891	3,210
Other	329	452
Total non-operating income	1,927	4,687
Non-operating expenses
Interest expenses	11	12
Share of loss of entities accounted for using equity method	74	35
Cost for idle operation	77	95
Other	72	46
Total non-operating expenses	235	189
Ordinary profit	8,665	13,003
Extraordinary income
Gain on disposal of non-current assets	6	142
Gain on sales of investment securities	652	―
Total extraordinary income	659	142
Extraordinary losses
Loss on disposal of non-current assets	53	116
Loss on discontinuation of sale	279	―
Total extraordinary losses	333	116
Profit before income taxes	8,992	13,029
Income taxes	2,564	3,208
Profit	6,427	9,821
Profit attributable to non-controlling interests	209	299
Profit attributable to owners of parent		6,218	9,522