久光製薬（4530） – Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 [Japanese GAAP]

April 7, 2022 Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 [Japanese GAAP] Contact TEL: Company name: Hisamitsu Pharmaceutical Co., Inc. Stock exchange listing: Tokyo, Nagoya, Fukuoka Securities code: 4530 URL: https://global.hisamitsu/ Representative: NAKATOMI Kazuhide, President & CEO +81-3-5293-1704 Scheduled date of Annual General Meeting of Shareholders: May 26, 2022 Scheduled date of dividend payment: Scheduled date of filing annual securities report: May 27, 2022 May 27, 2022 Preparation of supplementary materials for financial results: Yes TAKAO Shinichiro, Managing Director & Executive Officer, Management of Public Relations, Investor Relatoions Holding of annual 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 Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022) (1) Consolidated Operating Results (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen Fiscal year 2022 Fiscal year 2021 120,193 114,510 5.0 △18.8 9,337 10,671 △12.5 △53.0 12,638 11,829 6.8 △53.8 9,658 9,250 % 4.4 △50.5 (Note) Comprehensive income: Fiscal year 2022 15,883 millions of yen (60.0%) Fiscal year 2021 9,926 millions of yen (△26.3%) Profit per share Return on equity Diluted profit per share Ordinary profit on total assets Operating profit to net sales Fiscal year 2022 Fiscal year 2021 yen 118.92 113.22 yen 118.84 113.11 % 3.8 3.7 % 4.2 3.9 % 7.8 9.3 (Reference) Share of profit (loss) of entities accounted for using equity method: Fiscal year 2022 569 millions of yen (2) Consolidated Financial Position Total assets Net assets Shareholders’ equity ratio Net assets per share Fiscal year 2021 133 millions of yen Fiscal year 2022 Fiscal year 2021 Millions of yen 302,858 299,861 Millions of yen 254,885 253,809 (Reference) Shareholders’ equity: Fiscal year 2022 252,914 millions of yen Fiscal year 2021 252,066 millions of yen (3) Consolidated Cash Flows % 83.5 84.1 Yen 3,171.83 3,083.98 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 19,199 5,289 Millions of yen △13,060 7,815 Millions of yen △15,189 △7,187 Millions of yen 86,247 91,354 Fiscal year 2022 Fiscal year 2021 % 2.7 2.7 2. Dividends Fiscal year 2021 Fiscal year 2022 Fiscal year 2023 (Forecast) Annual dividends First quarter Second quarter Third quarter Fouth quarter Total dividends Payout ratio (consolidated) Dividends to net assets (consolidate) yen ― ― ― yen 41.75 42.00 42.25 Total yen 83.50 84.00 yen 41.75 42.00 42.25 84.50 yen ― ― ― Millions of yen 6,827 6,784 % 73.8 70.6 70.7 (Note) Breakdown of annual dividend forecast for the fiscal year 2023 Ordinary dividend 84.00 yen Commemorative dividend 0.50 yen (A commemorative dividend for the 175th anniversary) 3. Consolidated Earnings Forecast for the Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023) Net sales Operating profit Ordinary profit (Percentages represent year-on-year changes) Profit attributable to owners of parent Profit per share Full year Millions of yen 123,000 % 2.3 Millions of yen % 11,100 18.9 Millions of yen 12,700 % 0.5 Millions of yen % 9,700 0.4 yen 119.44 (Note) As the Company will apply the “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29) from the beginning of the fiscal year ending February 28, 2023, 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) 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 : Yes : None : None : None (3) The number of shares outstanding (common stock) 85,164,895 shares 85,164,895 shares 1) Total number of shares outstanding at the end of the period (including treasury stock) Fiscal year 2022: Fiscal year 2021: 2) Total number of treasury stock at the end of the period Fiscal year 2022: Fiscal year 2021: 3) Average number of shares outstanding during the period Fiscal year 2022: Fiscal year 2021: 5,427,284 shares 3,430,483 shares 81,213,132 shares 81,707,440 shares (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (1) Non-consolidated Operating Results (Percentages represent year-on-year changes) (March 1, 2021 to February 28, 2022) Fiscal year 2022 Fiscal year 2021 Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % 90,585 4.5 86,694 △21.0 Millions of yen % 8,615 △8.7 9,438 △53.5 Millions of yen % 10,608 2.3 10,372 △51.8 Millions of yen % 7,169 △14.1 8,342 △44.7 Profit per share Diluted profit per share Fiscal year 2022 Fiscal year 2021 (2) Non-consolidated Financial Position yen 88.25 102.07 yen 88.19 101.97 Total assets Net assets Net assets per share Shareholders’ equity ratio Millions of yen 222,355 231,247 % 87.3 87.5 Yen 2,784.39 2,825.43 Fiscal year 2022 Fiscal year 2021 Millions of yen 254,330 264,138 Fiscal year 2022 Fiscal year 2021 (Reference) Shareholders’ equity: 222,101 millions of yen 231,015 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 not guaranteed to be achieved by the Company. As a result, the forecasts of operating results may differ significantly from the actual operating results due to various factors. Prior Fiscal Year End (As of Feb. 28, 2021) Current Fiscal Year End (As of Feb. 28, 2022) (Millions of yen) 129,290 38,505 13,141 8,919 438 7,055 3,219 △393 200,176 47,182 △33,276 13,905 43,177 △36,905 6,272 11,822 △9,681 2,140 11,956 1,645 △497 1,147 3,646 39,069 442 156 726 1,326 52,519 5,112 1,153 3,714 △214 62,286 102,681 302,858 114,254 39,546 21,743 11,359 465 6,744 4,290 △343 198,061 46,059 △31,879 14,180 41,798 △35,636 6,162 11,838 △9,761 2,077 11,897 598 △384 214 2,822 37,354 27 206 944 1,178 54,602 3,895 1,047 3,935 △214 63,267 101,800 299,861 Consolidated Financial Statements (1) Consolidated Balance sheets Assets Current assets Cash and deposits Notes and accounts receivable – trade Securities Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles 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 Construction in progress Total property, plant and equipment Intangible assets Sales rights Software Other Total intangible assets Investments and other assets Investment securities Net defined benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets (Millions of yen) Prior Fiscal Year End (As of Feb. 28, 2021) Current Fiscal Year End (As of Feb. 28, 2022) 7,672 7,127 1,111 101 6,634 608 103 1,350 5,346 30,057 296 94 1,660 3,465 7,928 2,548 15,994 46,051 8,473 2,352 233,376 △11,495 232,707 16,165 3,790 △1,173 575 19,359 232 1,510 253,809 299,861 7,533 5,692 1,071 301 6,685 2,938 135 1,363 6,473 219 869 1,801 2,369 8,216 2,335 32,160 15,812 47,972 8,473 2,356 236,192 △19,527 227,495 15,070 3,641 5,633 1,073 25,419 254 1,717 254,885 302,858 Notes and accounts payable – trade Electronically recorded obligations – operating Liabilities Current liabilities Short-term loans payable Lease obligations Accounts payable – other Income taxes payable Provision for sales returns Provision for bonuses Other Total current liabilities Non-current liabilities Long-term loans payable Lease obligations Deferred tax liabilities Net defined benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Deferred tax liabilities for land revaluation Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income Prior Fiscal Year (Mar. 1, 2020 – Feb. 28 2021) Current Fiscal Year (Mar. 1, 2021 – Feb. 28 2022) (Millions of yen) 120,193 50,126 70,067 60,730 9,337 153 905 1,276 569 548 3,453 152 12,638 20 ― ― 77 54 7 653 ― 660 62 279 342 12,956 3,727 △633 3,093 9,862 204 9,658 114,510 45,337 69,173 58,501 10,671 2,061 563 843 ― 133 520 10 542 244 ― 106 903 218 188 2 408 40 ― 40 11,829 12,197 2,382 381 2,764 9,433 182 9,250 Share of profit of entities accounted for using equity method Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Loss on cancellation of insurance policies Cost for idle operation Other Total non-operating expenses Ordinary profit Extraordinary income Gain on disposal of non-current assets Gain on sales of investment securities National subsidies Total extraordinary income Extraordinary losses Loss on disposal of non-current assets Loss on discontinuation of sale Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent Prior Fiscal Year (Mar. 1, 2020 – Feb. 28 2021) Current Fiscal Year (Mar. 1, 2021 – Feb. 28 2022) Other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests △3,901 9,433 4,070 ― 277 46 492 9,926 9,771 154 (Millions of yen) 9,862 △1,065 △143 6,761 475 △7 6,020 15,883 15,724 158 Profit (3) Consolidated Statements of Changes in Shareholders’ Equity For the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Balance at March 1, 2020 8,473 2,272 230,929 △11,730 229,945 Changes in items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes of items during period Balance at February 28, 2021 △6,803 9,250 (Millions of yen) Total shareholders’ equity △5 240 △6,803 9,250 △5 320 ― ― 8,473 79 2,352 2,447 234 2,762 233,376 △11,495 232,707 Accumulated other comprehensive income Valuation difference on available-for-sale securities 12,047 Revaluation reserve for land Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehensi-ve income 18,838 3,790 2,700 299 491 1,470 250,746 (Millions of yen) Share acquisition rights Non-controlling interests Total net assets △6,803 9,250 △5 320 300 39 39 Balance at March 1, 2020 Changes in items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes of items during period Balance at February 28, 2021 16,165 3,790 △1,173 575 19,359 232 1,510 253,809 4,118 4,118 ― △3,873 ― △3,873 276 276 520 △259 520 △259 3,062 79 (Millions of yen) Total shareholders’ equity △6,847 9,658 6 16 ― △5,212 227,495 13 △8,044 △8,044 △6,847 9,658 6 For the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Balance at March 1, 2021 8,473 2,352 233,376 △11,495 232,707 Changes in items during period Dividends of surplus Profit attributable to owners of parent Reversal of revaluation reserve for land Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes of items during period Balance at February 28, 2022 ― 8,473 2,816 △8,031 2,356 236,192 △19,527 Accumulated other comprehensive income Valuation difference on available-for-sale securities 16,165 Revaluation reserve for land Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehensi-ve income 19,359 3,790 △1,173 575 232 1,510 253,809 (Millions of yen) Share acquisition rights Non-controlling interests Total net assets Balance at March 1, 2021 Changes in items during period Dividends of surplus Profit attributable to owners of parent Reversal of revaluation reserve for land Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity △6,847 9,658 △8,044 6 16 21 21 206 6,288 206 1,076 Total changes of items during period △1,095 △149 6,807 498 6,060 Balance at February 28, 2022 15,070 3,641 5,633 1,073 25,419 254 1,717 254,885 △1,095 △149 6,807 498 6,060 3 3 Prior Fiscal Year (Mar. 1, 2020 – Feb. 28 2021) Current Fiscal Year (Mar. 1, 2021 – Feb. 28 2022) (Millions of yen) (4) Consolidated Statements of Cash Flows Year ended February 28, 2021 and February 28, 2022 Cash flows from operating activities Profit before income taxes Depreciation Increase (decrease) in net defined benefit liability Increase (decrease) in provision for bonuses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for sales returns Interest and dividend income Loss (gain) on cancellation of insurance policies Interest expenses Foreign exchange losses (gains) Share of loss (profit) of entities accounted for using equity method Loss (gain) on sales of investment securities Loss (gain) on disposal of non-current assets Subsidy income Loss on discontinuation of sale Decrease (increase) in notes and accounts receivable – trade Decrease (increase) in inventories Decrease (increase) in other current assets Increase (decrease) in notes and accounts payable – trade Increase (decrease) in other current liabilities Other, net Subtotal Interest and dividend income received Interest expenses paid Income taxes paid Payments of retirement benefits for directors (and other officers) Net cash provided by (used in) operating activities 12,197 4,079 336 △182 28 △24 △1,406 244 10 84 △133 △188 △177 △2 ― 8,955 △4,325 △1,507 △3,812 △1,864 △701 11,609 1,734 △9 △7,320 △724 5,289 12,956 4,321 231 △22 34 32 △1,058 ― 20 △932 △569 △653 55 ― 279 2,191 3,073 295 △2,196 653 △430 18,282 1,446 △20 △505 △3 19,199 Prior Fiscal Year (Mar. 1, 2020 – Feb. 28 2021) Current Fiscal Year (Mar. 1, 2021 – Feb. 28 2022) (Millions of yen) △11,007 △3,610 37 △583 1,498 △340 931 2 11 ― △40 △77 △44 △13,060 △8,043 △6,839 △144 △15,189 3,944 △5,106 91,254 86,247 △178 △3,341 642 △47 9,715 △191 258 953 2 2 7,815 △100 △69 △115 △2 △6,806 △94 △7,187 △1,559 4,357 86,996 91,354 Cash flows from investing activities Decrease (increase) in time deposits Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Purchase of intangible assets Decrease (increase) in short-term investment securities Purchase of investment securities Proceeds from sales and redemption of investment securities Collection of loans receivable Proceeds from cancellation of insurance funds Subsidies received 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 Dividends paid to non-controlling interests Purchase of treasury shares Cash dividends paid Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period