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Consolidated Financial Statements for the Second Quarter of
the Fiscal Year Ending March 31, 2015
[Japanese GAAP]
November 7, 2014
Company name: VITAL KSK HOLDINGS, INC.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3151
URL: http://www.vitalksk.co.jp/
Representative: Mr. Ken Suzuki, President & CEO
Contact: Mr. Kiharu Takahashi, General Manager of Accounting & Finance
Phone: +81-3-3275-3303
Scheduled date of filing quarterly report: November 12, 2014
Scheduled date of commencing dividend payments: December 1, 2014
Preparation of supplementary explanatory materials: Yes
Quarterly financial results briefing: Yes (for institutional investors and analysts)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Results for the Second Quarter of the Fiscal Year Ending March 31, 2015
(April 1, 2014 - September 30, 2014)
(1) Consolidated Operating Results (% indicates changes from the previous corresponding period.)
Net sales Operating income Ordinary income Net income
Six months ended Million yen % Million yen % Million yen % Million yen %
September 30, 2014 265,486 (3.9) 724 (39.3) 3,233 11.3 2,536 30.4
September 30, 2013 276,227 2.4 1,193 (39.0) 2,905 (17.8) 1,945 (15.3)
(Note) Comprehensive income: Six months ended September 30, 2014: ¥5,533 million [270.6%]
Six months ended September 30, 2013: ¥1,492 million [(28.3)%]
Net income per share
Diluted net income per share
Six months ended Yen Yen
September 30, 2014 43.76 43.61
September 30, 2013 32.82 -
(2) Consolidated Financial Position Total assets Net assets Equity ratio
Million yen Million yen %
As of September 30, 2014 283,232 69,380 24.4
As of March 31, 2014 279,373 67,566 24.0
(Reference) Equity: As of September 30, 2014: ¥68,969 million
As of March 31, 2014: ¥67,172 million
2. Cash Dividends
Annual dividends
1st quarter-end
2nd quarter-end
3rd quarter-end
Year-end Total
Yen Yen Yen Yen Yen
Year ended March 31, 2014 - 8.00 - 8.00 16.00
Year ending March 31, 2015 - 8.00
Year ending March 31, 2015 (Forecast)
- 10.00 18.00
(Note) Revision to the forecast for dividends announced most recently: None
3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2015
(April 1, 2014 - March 31, 2015)
(% indicates changes from the previous corresponding period.)
Net sales Operating income Ordinary income Net income
Net income per share
Million yen % Million yen % Million yen % Million yen % Yen
Full year 551,600 (2.3) 1,800 (43.6) 6,000 (9.5) 4,300 1.5 75.51 (Note) Revision to the forecast of consolidated results announced most recently: None
* Notes:
(1) Changes in significant subsidiaries during the period under review: Yes
New: One company Name: OHNO Co., LTD. Exclusion: ― company Name: ―
(Note) For details, please refer to page 6 of the attached materials, “Matters Concerning Summary Information
(Notes) (1) Changes in Significant Subsidiaries during the Period under Review.” (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes
(Note) For details, please refer to page 6 of the attached materials, “Accounting Policies Adopted Specially for the
Preparation of Quarterly Consolidated Financial Statements.”
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of outstanding shares (common shares)
1) Total number of outstanding shares at the end of the period (including treasury stocks):
September 30, 2014: 61,224,796 shares
March 31, 2014: 61,224,796 shares
2) Total number of treasury stocks at the end of the period:
September 30, 2014: 5,309,890 shares
March 31, 2014: 3,080,296 shares
3) Average number of shares during the period:
Six months ended September 30, 2014: 57,973,779 shares
Six months ended September 30, 2013: 59,266,511 shares
* Presentation regarding the implementation status of the quarterly review procedures
These quarterly financial results are outside the scope of quarterly review procedures under the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial results, quarterly review
procedures for the quarterly consolidated financial statements under the Financial Instruments and Exchange Act
have not been completed.
* Explanation of the proper use of performance forecast and other notes
The earnings forecast and other forward-looking statements herein are based on the information currently
available and certain assumptions deemed reasonable by the Company, and thus actual results may differ
significantly from these forecasts due to a wide range of factors. For cautionary notes on assumptions that form
the basis of the performance forecast and the use of performance forecast, please see “Explanation of Consolidated
Performance Forecast and Other Forward-looking Information” on page 5 of the attached materials.
The Company is scheduled to hold a financial results briefing for institutional investors and analysts on November
20, 2014. The proceedings and audio data of the briefing, along with the briefing materials on the quarterly
financial results to be used in the briefing, will be posted on the Company website immediately after the briefing.
1
Table of Contents
1. Qualitative Information on Quarterly Financial Results ................................................................................ 2
(1) Explanation of Operating Results .............................................................................................................. 2
(2) Explanation of Financial Position .............................................................................................................. 4
(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information ................. 5
2. Matters Concerning Summary Information (Notes) .................................................................................... ...6
(1) Changes in Significant Subsidiaries during the Period under Review ......................................................... ...6
(2) Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial
Statements .................................................................................................................................................. 6
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement ...... 6
3. Quarterly Consolidated Financial Statements ................................................................................................ 7
(1) Quarterly Consolidated Balance Sheets ..................................................................................................... 7
(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................. 9
Quarterly Consolidated Statements of Income ........................................................................................... 9
Quarterly Consolidated Statements of Comprehensive Income ................................................................. 10
(3) Quarterly Consolidated Statements of Cash Flows .................................................................................... 11
(4) Notes to Quarterly Consolidated Financial Statements ............................................................................ 13
(Notes on going concern assumption) ................................................................................................. 13
(Notes in the case of significant changes in amount of shareholders’ equity) ..................................... 13
(Segment information) ........................................................................................................................ 13
2
1. Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
The Japanese economy during the six months ended September 30, 2014 remained on a moderate recovery
trend, led by the government’s economic and financial policies and other factors. However, since this April, due
mainly to a slowdown in consumer spending resulting from the impact of the government’s implementation of
consumption tax hike, etc., the future outlook is uncertain.
In the pharmaceutical wholesale industry, our Group’s primary business segment, Japan’s medical expense
curbing policy led to drug price revision in April 2014, which lowered drug price standards by 2.65% (5.64%
excluding the increase corresponding to consumption tax hike). When it comes to pharmaceutical distribution
during the six months ended September 30, 2014, following the increased demand in advance of the
government’s implementation of consumption tax hike in April 2014, the pharmaceutical market shrank slightly
as a result of the reaction to such increased demand and the impact of rapid category changes, etc. (shifting of
main products in prescription drug sale from long-listed drugs to generic products and those covered by the
premium pricing scheme for the promotion of new drug creation and resolution of unapproved drugs/off-label
use).
Under these circumstances, the Group has entered the second year of its three-year second medium-term
management plan, which started in April 2013. Led by the two medium-term visions, “Building a Win-Win
relationship with customers in the pharmaceutical wholesale business” and “Investing in business related to
comprehensive community care system and contributing to building regional healthcare infrastructure,” our
goal is to become a Health Care Coordinator in the region.
In January 2014, the Group company INOUE SEISHO DOU CO., LTD. (head office: Takaoka City,
Toyama Prefecture) and FINESE Co., Ltd. (“FINESE”), a company in the same industry with its head office
located in Kanazawa City, Ishikawa Prefecture, were merged and FINESE became an equity method affiliate of
the Company in order to strengthen our core pharmaceutical wholesale business. On April 25, 2014, FINESE
issued new shares through a third-party allotment to the Company (capital contribution ratio: 33.4%) to further
strengthen our relationships. The capital and business alliance agreement concluded between the Company and
FINESE is expected to further increase earning power and expand business opportunities by creating a
contiguous span encompassing the Tohoku, Niigata and Kinki areas, the Group’s main business areas, with the
Hokuriku area, where the newly merged company’s business infrastructure has been reinforced.
In July 2014, as part of the Group’s healthcare coordination business, two residences for elderly people
with supportive service were opened, one in Aoba-ku, Sendai City (named Bell Heart West Park) and one in
Toyooka City, Hyogo Prefecture (named Shiki-no-Sato Toyooka). Not only will this promise strengthen our
relationship with nearby medical institutions, but also it is expected to provide new revenue for the Group in its
residential and nursing care businesses. Also in the same month, VITAL-NET, INC. (head office: Sendai City,
Miyagi Prefecture), a business subsidiary of the Company, made OHNO Co., LTD., which operates over 50
dispensing pharmacies in the area spanning Tokyo and five prefectures mainly in Miyagi Prefecture, its wholly
owned subsidiary. Taking advantage of this opportunity, the Group aims to further promote its healthcare
coordination business so that it will be able to further enhance its earning power.
However, in the pharmaceutical wholesale business, our Group’s primary business segment, sales total of
long-listed drugs fell far below our expectations due to the rapid category changes, in addition to the reaction to
the increased demand in advance of the government’s implementation of consumption tax hike and the trend of
restraining medical examinations. As a result of the above, for the six months ended September 30, 2014,
consolidated net sales were ¥265,486 million (96.1% of that of the same period of the previous year),
consolidated operating income was ¥724 million (60.7% of that of the same period of the previous year),
consolidated ordinary income was ¥3,233 million (111.3% of that of the same period of the previous year), and
consolidated net income was ¥2,536 million (130.4% of that of the same period of the previous year).
3
Performance results by business segment are as follows.
1) Pharmaceutical Wholesale Business
In the pharmaceutical wholesale business, the Group focused on the sale of new products (original drugs)
and products covered by the premium pricing scheme for the promotion of new drug creation and resolution of
unapproved drugs/off-label use, and worked to maintain sales total. In terms of profits, the Group worked with
several manufacturers to secure profits through joint purchasing, as well as focused on negotiations for delivery
prices by single unit and single price in order to respond accurately to category changes. The Group’s main
business subsidiaries (VITAL-NET, INC. and KSK CO., LTD.) used the “VK Marketing” sales strategy system,
which went into full-fledged operation from April 2012, to implement sales strategies based on sales profit and
loss conditions by client, continuing to focus on maintaining and improving earning power while also engaging
in negotiations to improve business dealings with unprofitable clients.
However, the impact of the market shrinkage as mentioned above could not be offset. As a result, net sales
were ¥255,412 million (94.9% of that of the same period of the previous year), and segment income (operating
income) was ¥654 million (65.5% of that of the same period of the previous year).
2) Other Businesses
In other businesses, although net sales substantially increased because of making OHNO Co., LTD. a
consolidated subsidiary, the impact of the reaction to the increased demand in advance of the government’s
implementation of consumption tax hike primarily in the wholesale business of veterinary drugs and
agricultural chemicals was huge. Consequently, net sales were ¥10,074 million (141.7% of that of the same
period of the previous year) and segment income (operating income) was ¥27 million (18.5% of that of the
same period of the previous year).
4
(2) Explanation of Financial Position
1) Condition of Assets, Liabilities and Net Assets
Assets as of the end of the second quarter of the fiscal year under review amounted to ¥283,232 million,
an increase of ¥3,859 million from the end of the previous consolidated fiscal year. Assets comprised ¥188,639
million of current assets and ¥94,593 million of fixed assets.
Current assets mainly comprised ¥27,469 million of cash and deposits, ¥120,042 million of notes and
accounts receivable-trade, ¥26,940 million of inventories and ¥12,793 million of accounts receivable-other.
Current assets decreased ¥11,958 million, due primarily to the ¥2,793 million decrease in cash and deposits and
the ¥6,319 million decrease in notes and accounts receivable-trade from the end of the previous consolidated
fiscal year.
Fixed assets comprised ¥37,187 million of property, plant and equipment, ¥7,111 million of intangible
assets and ¥50,294 million of investments and other assets. Fixed assets increased ¥15,817 million, due
primarily to the ¥5,785 million increase in buildings and structures, the ¥7,861 million increase in investment
securities and the ¥3,185 million decrease in construction in progress from the end of the previous consolidated
fiscal year.
Liabilities amounted to ¥213,852 million, an increase of ¥2,045 million from the end of the previous
consolidated fiscal year. Liabilities comprised ¥178,357 million of current liabilities and ¥35,495 million of
long-term liabilities.
Current liabilities mainly comprised ¥170,445 million of notes and accounts payable-trade, ¥1,614 million
of short-term bank loans and ¥1,655 million of provision for bonuses. Current liabilities decreased ¥10,545
million, due primarily to the ¥10,224 million decrease in notes and accounts payable-trade from the end of the
previous consolidated fiscal year.
Long-term liabilities mainly comprised ¥9,275 million of net defined benefit liability, ¥3,315 million of
negative goodwill, and ¥10,050 million of convertible bond-type bonds with subscription rights to shares.
Long-term liabilities increased ¥12,591 million, due primarily to the ¥812 million increase in long-term debt
and the ¥10,050 million increase in convertible bond-type bonds with subscription rights to shares resulting
from the issuance of euro-yen zero coupon convertible bonds from the end of the previous consolidated fiscal
year.
Net assets amounted to ¥69,380 million, an increase of ¥1,813 million from the end of the previous
consolidated fiscal year, due primarily to the reporting of net income of ¥2,536 million, the ¥3,011 million
increase in valuation difference on investment securities, and the ¥2,073 million increase in treasury stocks
purchased and deducted from net assets.
2) Condition of Cash Flows
Cash and cash equivalents on a consolidated basis (collectively, “Cash”) as of the end of the second
quarter of the fiscal year under review amounted to ¥24,113 million.
(Cash flows from operating activities)
Cash provided by operating activities for the six months ended September 30, 2014 amounted to ¥735
million. This was mainly attributable to increasing factors such as the recording of income before income taxes
and minority interests of ¥3,520 million and depreciation, which are non-cash items, of ¥1,225 million, and the
¥7,481 million decrease in notes and accounts receivable-trade, in spite of decreasing factors such as the
¥11,884 million decrease in notes and accounts payable-trade.
(Cash flows from investing activities)
Cash used in investing activities for the six months ended September 30, 2014 amounted to ¥9,225 million.
This was mainly attributable to decreasing factors such as purchase of property, plant and equipment of ¥2,841
million and purchase of stocks of subsidiaries and affiliates of ¥7,866 million, in spite of increasing factors
such as net decrease in time deposits of ¥1,734 million.
(Cash flows from financing activities)
Cash provided by financing activities for the six months ended September 30, 2014 amounted to ¥7,396
5
million. This was mainly attributable to the increasing factors such as proceeds from issuance of convertible
bond-type bonds with subscription rights to shares of ¥10,017 million, in spite of decreasing factors such as
cash dividends paid of ¥464 million, repayments of lease obligations of ¥365 million, and purchase of treasury
stocks of ¥2,073 million.
(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
In light of recent performance trends, etc., the Company has revised the performance forecast for the fiscal
year ending March 31, 2015, announced on August 5, 2014. For details, please see “Notice Concerning
Revision of Performance Forecast,” announced on November 5, 2014.
6
2. Matters Concerning Summary Information (Notes)
(1) Changes in Significant Subsidiaries during the Period under Review
On July 14, 2014, all shares of OHNO Co., LTD. were acquired and the company has been included in the
scope of consolidation from the second quarter of the fiscal year under review.
(2) Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements
Calculation of tax expenses
Tax expenses are calculated by the method in which the effective tax rate on income before income taxes
for the current consolidated fiscal year after application of tax effect accounting is reasonably estimated, and
the income before income taxes was multiplied by such estimated effective tax rate.
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement
Effective from the first quarter of the fiscal year, the Company has applied the “Accounting Standard for
Retirement Benefits” (Accounting Standards Board of Japan (ASBJ) Statement No. 26, May 17, 2012;
hereinafter the “Retirement Benefits Accounting Standard”) and the “Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012; hereinafter the “Guidance on Retirement
Benefits”), in accordance with the provisions in the main clause of Paragraph 35 of the Retirement Benefits
Accounting Standard and the main clause of Paragraph 67 of the Guidance on Retirement Benefits. Accordingly,
the method of calculating retirement benefit obligations and service costs has been reviewed and the method of
attributing projected retirement benefits to periods has been changed from the straight-line basis to the benefit
formula basis. Additionally, the method of determining the discount rate has been changed from the one that
uses a discount rate based on the period of bonds approximate to the average remaining service periods of
employees to the one that uses a single weighted average discount rate reflecting the estimated period of
retirement benefit payments and the amount of retirement benefit payment for each estimated payment period.
As for application of the Retirement Benefits Accounting Standard, etc. in line with the transitional
treatment provided in Paragraph 37 of the Retirement Benefits Accounting Standard, the effect of the change in
the calculation method of retirement benefit obligations and service costs is added to or deducted from retained
earnings as of at the beginning of the first quarter of the fiscal year under review.
As a result, at the beginning of the first quarter of the fiscal year ending March 31, 2015, net defined
benefit asset decreased ¥496 million, net defined benefit liability increased ¥1,325 million and retained
earnings decreased ¥1,178 million. In addition, operating income, ordinary income and income before income
taxes and minority interests for the six months ended September 30, 2014 increased ¥46 million, respectively.
7
3. Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets
(Million yen)
As of March 31, 2014 As of September 30, 2014
Assets
Current assets
Cash and deposits 30,263 27,469
Notes and accounts receivable-trade 126,361 120,042
Inventories 28,210 26,940
Accounts receivable-other 13,738 12,793
Other 2,461 1,810
Allowance for doubtful accounts (438) (417)
Total current assets 200,597 188,639
Fixed assets
Property, plant and equipment
Buildings and structures, net 11,586 17,372
Land 17,145 17,378
Other, net 5,502 2,437
Total property, plant and equipment 34,234 37,187
Intangible assets
Other 1,984 7,111
Total intangible assets 1,984 7,111
Investments and other assets
Investment securities 32,601 40,463
Other 11,362 11,191
Allowance for doubtful accounts (1,408) (1,360)
Total investments and other assets 42,556 50,294
Total fixed assets 78,776 94,593
Total assets 279,373 283,232
8
(Million yen)
As of March 31, 2014 As of September 30, 2014
Liabilities
Current liabilities
Notes and accounts payable-trade 180,669 170,445
Short-term bank loans 1,950 1,614
Income taxes payable 785 1,030
Provision for bonuses 1,844 1,655
Other provision 173 173
Other 3,480 3,438
Total current liabilities 188,903 178,357
Long-term liabilities Convertible bond-type bonds with subscription
rights to shares –
10,050
Long-term debt 3,000 3,812
Other provision 229 209
Negative goodwill 3,683 3,315
Net defined benefit liability 8,176 9,275
Other 7,813 8,832
Total long -term liabilities 22,903 35,495
Total liabilities 211,806 213,852
Net assets
Shareholders’ equity
Common stock 5,000 5,000
Capital surplus 12,675 12,675
Retained earnings 38,427 39,320
Treasury stock (1,986) (4,060)
Total shareholders’ equity 54,116 52,935
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 12,642 15,653
Remeasurements of defined benefit plans 413 379
Total accumulated other comprehensive income 13,055 16,033
Minority interests 394 410
Total net assets 67,566 69,380
Total liabilities and net assets 279,373 283,232
9
(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Six Months Ended September 30, 2013 and 2014
(Million yen)
For the six months ended
September 30, 2013
For the six months ended
September 30, 2014
Net sales 276,227 265,486
Cost of sales 256,140 245,517
Gross profit 20,086 19,969
Reversal of provision for sales returns 167 173
Provision for sales returns 163 173
Gross profit-net 20,089 19,969
Selling, general and administrative expenses 18,896 19,245
Operating income 1,193 724
Non-operating income
Interest income 81 74
Dividend income 331 370
Amortization of negative goodwill 368 368
Equity in earnings of associated company – 813
Administrative service income 740 691
Other 221 258
Total non-operating income 1,743 2,577
Non-operating expenses
Interest expenses 22 25
Bond issuance cost - 32
Other 9 10
Total non-operating expenses 31 68
Ordinary income 2,905 3,233
Extraordinary income
Gain on sales of fixed assets 6 0
Insurance income - 162
Compensation income 81 60
Other 77 76
Total extraordinary income 165 299
Extraordinary losses
Loss on sales of fixed assets 0 –
Loss on impairment of fixed assets 12 6
Other 13 6
Total extraordinary losses 26 12
Income before income taxes and minority interests 3,044 3,520
Income taxes 1,077 964
Income before minority interests 1,967 2,555
Minority interests 22 18
Net income 1,945 2,536
10
Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended September 30, 2013 and 2014
(Million yen)
For the six months ended
September 30, 2013
For the six months ended
September 30, 2014
Income before minority interests 1,967 2,555 Other comprehensive income
Valuation difference on available-for-sale securities (474) 2,736 Share of other comprehensive income of associated
company accounted for using equity method – 274
Remeasurements of defined benefit plans, net of tax – (33)
Total other comprehensive income (474) 2,977
Comprehensive income 1,492 5,533
Comprehensive income attributable to: Owners of the parent 1,470 5,514 Minority interests 22 18
11
(3) Quarterly Consolidated Statements of Cash Flows
(Million yen)
For the six months ended
September 30, 2013
For the six months ended
September 30, 2014
Cash flows from operating activities Income before income taxes and minority interests 3,044 3,520 Depreciation 1,068 1,225 Loss on impairment of fixed assets 12 6 Amortization of goodwill 5 78 Amortization of negative goodwill (368) (368) Increase (decrease) in allowance for doubtful accounts (21) (70) Equity in (earnings) loss of associated company – (813) Increase (decrease) in provision for bonuses (101) (438) Increase (decrease) in net defined benefit liability – 343 Increase (decrease) in provision for retirement benefits (375) – Interest and dividend income (412) (445) Rent income (33) (46) Administrative service income (740) (691) Interest expenses 22 25 Loss (gain) on sales and valuation of investment
securities (37) (8)
Loss (gain) on sales and retirement of property, plant
and equipment (5) (0)
Decrease (increase) in notes and accounts receivable-
trade (5,878) 7,481
Decrease (increase) in inventories 1,565 1,578 Decrease (increase) in accounts receivable-other 1,556 943 Increase (decrease) in notes and accounts payable-trade (15,655) (11,884) Decrease (increase) in guarantee deposits (212) (43) Other, net (717) (1,043)
Subtotal (17,285) (650)
Interest and dividend income received 420 446 Administrative service income received 728 692 Compensation income received 81 60 Proceeds from insurance income – 162 Interest expenses paid (18) (26) Income taxes paid (2,225) (799) Income taxes refund 190 860 Other, net (1) (9) Net cash provided by (used in) operating activities (18,110) 735
12
For the six months ended
September 30, 2013
For the six months ended
September 30, 2014
Cash flows from investing activities Net decrease (increase) in time deposits 1,993 1,734 Purchase of property, plant and equipment (2,297) (2,841) Proceeds from sales of property, plant and equipment 101 0
Purchase of intangible assets (304) (446)
Purchase of investment securities (271) (21) Proceeds from sales of investment securities 161 13 Purchase of stocks of subsidiaries and affiliates – (7,866) Proceeds from distribution of investment in partnerships 84 15 Other, net 150 186
Net cash provided by (used in) investing activities (382) (9,225)
Cash flows from financing activities Proceeds from issuance of convertible bond-type bonds
with subscription rights to shares – 10,017
Proceeds from long-term debt 3,000 1,200 Repayments of long-term debt – (916) Repayments of lease obligations (312) (365) Purchase of treasury stocks (0) (2,073) Cash dividends paid (473) (464) Other, net (2) (2)
Net cash provided by (used in) financing activities 2,211 7,396
Net increase (decrease) in cash and cash equivalents (16,282) (1,093)
Cash and cash equivalents at the beginning of period 33,360 25,206
Cash and cash equivalents at the end of period 17,078 24,113
13
(4) Notes to Quarterly Consolidated Financial Statements
(Notes on going concern assumption)
For the six months ended September 30, 2014 (from April 1, 2014 to September 30, 2014)
Not applicable.
(Notes in the case of significant changes in amount of shareholders’ equity)
For the six months ended September 30, 2014 (from April 1, 2014 to September 30, 2014)
Not applicable.
(Segment information)
I. For the six months ended September 30, 2013 (from April 1, 2013 to September 30, 2013)
Information on net sales and income (loss) by reportable segment
(Million yen)
Reportable segment
Others
(Note 1) Total
Adjustment
(Note 2)
Amount
recorded in
Quarterly
Consolidated
Statements of
Income
(Note 3)
Pharmaceuti-
cal
Wholesale
Business
Total
Net sales
Net sales to outside customers 269,114 269,114 7,112 276,227 – 276,227
Inter-segment net sales
or transfers 659 659 1,303 1,962 (1,962) –
Total 269,773 269,773 8,415 278,189 (1,962) 276,227
Segment income 999 999 148 1,148 45 1,193
(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as
retail of pharmaceuticals, etc., wholesale of agricultural chemicals and veterinary drugs, transportation
business, nursing care service business and consulting services for medical institutions.
2. ¥45 million of adjustment of segment income refers to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income to operating income reported on the quarterly
consolidated statements of income.
14
II. For the six months ended September 30, 2014 (from April 1, 2014 to September 30, 2014)
Information on net sales and income (loss) by reportable segment
(Million yen)
Reportable segment
Others
(Note 1) Total
Adjustment
(Note 2)
Amount
recorded in
Quarterly
Consolidated
Statements of
Income
(Note 3)
Pharmaceuti-
cal
Wholesale
Business
Total
Net sales
Net sales to outside customers 255,412 255,412 10,074 265,486 – 265,486
Inter-segment net sales
or transfers 1,192 1,192 1,297 2,490 (2,490) –
Total 256,604 256,604 11,372 267,976 (2,490) 265,486
Segment income 654 654 27 682 41 724
(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as
retail of pharmaceuticals, etc., wholesale of agricultural chemicals and veterinary drugs, transportation
business, nursing care service business and consulting services for medical institutions.
2. ¥41 million of adjustment of segment income refers to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income to operating income reported on the quarterly
consolidated statements of income.