― FACT BOOK ―
Supplementary Materials
Financial Results <First Half of FY2010>
Corporate Philosophy
These words embody our commitment to:
Creating our own unique and innovative products
Improving human health and well-being
Contributing to the lives of people worldwide
In keeping with this corporate philosophy and Otsuka’s mottos “JISSHO” (Proof
through Execution) and “SOZOSEI” (Creativity), we strive to utilize our Group's
unique assets and skills to develop differentiating scientific solutions which
contribute to the lives of people worldwide in the form of innovative and creative
products ranging from pharmaceuticals to consumer products.
Otsuka Group is striving to cultivate a culture and a dynamic corporate climate
reflecting our vision as a health-care company. As such we are dedicated to
achieving global sustainability, to our relationships with local communities and to
the protection of the natural environment.
Corporate profile (as of September 30, 2010)
Company name
Otsuka Holdings Co., Ltd.
Established
July 8, 2008
President and
Representative
Director, CEO
Tatsuo Higuchi
Capital
JPY 42,946 million
Registered address
2-9 Kanda-Tsukasamachi, Chiyoda-ku, Tokyo 101-0048,
Japan
Tokyo headquarters
Shinagawa Grand Central Tower, 2-16-4 Konan,
Minato-ku, Tokyo 108-8241, Japan
http://www.otsuka.com/en/
Contents
Page
Ⅰ
Financial Highlights
・・・・・・・・
2
Ⅱ
Consolidated Statements of Income
・・・・・・・・
4
Ⅱ-1
Subsidiaries and Affiliates
・・・・・・・・
5
Ⅱ-2
Sales of Major Products
・・・・・・・・
6
Ⅱ-3
Segment Information
・・・・・・・・
8
Ⅱ-4
Selling, General and Administrative Expenses
・・・・・・・・
9
Ⅲ
Consolidated Balance Sheets
・・・・・・・・
10
Ⅳ
Consolidated Statements of Cash Flows
・・・・・・・・
12
Ⅴ
Shareholders
・・・・・・・・
13
Ⅳ
Pipeline Information
・・・・・・・・
14
-1-
I. Financial Highlights
Net Sales
Operating Income
(Billions of yen)
(Billions of yen)
1,200
1,000
955.9
928.5
118.3
120
1,084.3
100
853.9
800
14%
98.5
91.5
12%
91.5
10%
80
574
553.9
600
69.9
8%
60.3
60
6%
400
40
4%
200
20
2%
0
0%
0
FY 2006
FY 2007
FY 2008
FY 2009
FY 2009
(1-2Q)
FY 2010
(1-2Q)
FY 2006 FY 2007 FY 2008 FY 2009 FY 2009 FY 2010
(1-2Q)
(1-2Q)
Operating Income
Ordinary Income
R&D Expenses
(Billions of yen)
(Billions of yen)
124.1
16%
114
120
109.1
14%
100
140
12%
120
74
80
10%
100
64.6
60
40
20
0
8%
80
6%
60
4%
40
2%
20
0%
0
FY 2006 FY 2007 FY 2008 FY 2009 FY 2009 FY 2010
(1-2Q)
(1-2Q)
Ordinary Income
15%
151.8
160
96.1
Operating Income/Net Sales
135.9
14%
105.3
101.8
67.4
13%
80.2
12%
11%
10%
FY 2006
Ordinary Income/Net Sales
FY 2007
FY 2008
R&D Expenses
FY 2009
FY 2009
(1-2Q)
FY 2010
(1-2Q)
R&D Expenses/Net Sales
Financial Highlights
FY2006
FY2007
FY2008
FY2009
FY2009
1-2Q
FY2010
1-2Q
(Billions of yen)
853.9
928.5
955.9
1,084.3
553.9
574.0
YoY
13.4%
8.7%
3.0%
13.4%
12.9%
3.6%
91.5
118.3
91.5
98.5
60.3
69.9
Net sales
Operating
income
(Billions of yen)
YoY
55.5%
29.3%
-22.6%
7.6%
21.1%
15.8%
Ordinary
income
(Billions of yen)
114.0
124.1
96.1
109.1
64.6
74.0
YoY
61.3%
8.9%
-22.6%
13.5%
12.9%
14.5%
52.9
61.9
47.1
67.4
45.3
53.2
YoY
98.8%
17.0%
-23.9%
43.2%
31.3%
17.4%
(Billions of yen)
105.3
101.8
135.9
151.8
67.4
80.2
YoY
1.5%
-3.3%
33.5%
11.7%
6.4%
18.9%
(Billions of yen)
337.6
385.2
395.0
525.5
259.0
268.4
% of net sales
39.5%
41.5%
41.3%
48.4%
46.8%
46.8%
(Billions of yen)
Net income
R&D expenses
Overseas net
sales
FY2006
FY2007
FY2008
FY2009
FY2009
1-2Q
FY2010
1-2Q
Total assets
(Billions of yen)
982.1
1,034.0
1,298.8
1,458.4
1,433.7
1,439.2
Net assets
(Billions of yen)
667.8
731.8
863.8
948.5
927.6
981.6
(%)
45.9
48.6
62.3
64.2
63.9
67.3
Shareholders'
equity ratio
Note: The above figures for fiscal years prior to FY2008 are the consolidated results of Otsuka Pharmaceutical Co., Ltd.
-2-
Net Sales by Business Segment (FY2009)
Net Sales by Geographical Segment (FY2009)
(Billions of yen)
Other Business
Consumer
71.3
Products
Business 50.1
Nutraceutical
Business
247.0
North
America
369.8
Pharmaceutical
Business
715.9
Net Sales by business segment *
FY2006
Pharmaceutical business
Nutraceutical business
Consumer products business
Other business
FY2007
576.1
-
(Billions of yen)
Others
117.3
FY2008
640.3
-
FY2009
Japan 597.3
Change
(Billions of yen)
FY2009
FY2010
1-2Q
1-2Q
651.7
715.9
9.8%
357.6
365.1
217.9
247.0
13.3%
133.8
144.3
249.2
258.6
51.9
50.1
-3.5%
29.1
26.3
28.6
29.6
34.4
71.3
107.4%
33.4
38.4
* Effective April 1, 2009, the business segmentation was modified. The information for FY2008 has been reclassified according to the new segmentation.
(Billions of yen)
Net sales by geographical segment
FY2006
FY2007
FY2008
FY2009
Change
FY2009
1-2Q
FY2010
1-2Q
Japan
546.4
570.9
613.6
597.3
-2.7%
314.0
328.9
North America
255.8
293.2
288.9
369.8
28.0%
182.1
184.2
51.8
64.4
53.4
117.3
119.6%
57.8
60.9
Others
(Reference) Exchange rates used to translate operating results of overseas subsidiaries*
Exchange rate (Yen)
FY2006
FY2007
(Yen)
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
US$
119.11
114.15
91.03
92.10
96.01
88.48
Euro
156.50
166.66
127.96
132.00
135.53
107.81
* Exchange rates used to translate operating results of overseas subsidiaries are as of their book closing date (December for fiscal year results and June
for the first half-year results).
ROE / EPS / Dividend
ROE (Return on equity: %)
EPS (Earnings per share: yen)
Annual dividends per share (yen)
Payout ratio (%)
FY2006
FY2007
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
―
―
12.6
13.0
7.2
7.7
4,009.45
4,692.71
2,727.20
143.50
150.0
300.0
250.0
12.5
―
―
3.7%
6.4%
9.2%
8.7%
―
―
97.78
111.61
* On June 30, 2009, a twenty-for-one stock split was executed by way of a free share distribution.
(Billions of yen)
Cash flow information
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided (used in) by financing
activities
Cash and cash equivalents at end of period
FY2006
FY2007
FY2008
FY2009
Change
FY2009
1-2Q
FY2010
1-2Q
82.2
117.2
58.5
173.5
115.0
102.0
34.9
-67.6
-75.5
-213.6
-59.0
154.6
-19.9
-25.2
-3.2
-16.2
172.2
-28.1
-200.3
-14.0
-38.0
201.5
222.6
230.1
321.3
91.2
304.1
291.8
-3-
II. Consolidated Statements of Income
(Billions of yen)
FY2008
%
FY2009
%
Net sales
955.9 100.0%
1,084.3 100.0%
Cost of sales
322.6
33.7%
356.6
Gross profit
633.4
66.3%
Selling, general and administrative expenses
541.8
56.7%
FY2009
1-2Q
%
FY2010
1-2Q
%
553.9 100.0%
574.0 100.0%
3.6%
32.9%
182.6
33.0%
192.5
33.5%
5.4%
727.7
67.1%
371.2
67.0%
381.5
66.5%
2.8%
629.2
58.0%
310.9
56.1%
311.6
54.3%
0.2%
14.0%
18.9%
12.2%
15.8%
12.9%
14.5%
Promotion expenses
158.3
198.7
102.5
92.1
Salaries and bonuses
68.7
77.9
35.0
35.7
Reserve for bonuses
9.1
9.9
8.3
9.2
Retirement benefit expenses
6.1
7.9
3.9
3.5
Provision for directors' retirement benefits
1.5
0.7
Provision for directors' bonuses
0.3
0.3
12.4
14.7
2.9
4.3
2.1
2.2
Depreciation
Amortization of goodwill
Research and development expenses
135.9
Other
146.7
14.2%
151.8
14.0%
163.0
12.2%
91.7
11.0
14.9
8.6
10.8
Interest income
3.1
1.4
0.7
0.6
Dividend income
1.0
1.6
1.1
0.6
Amortization of negative goodwill
2.5
2.5
1.2
1.3
1.8
4.9
4.1
3.6
-
1.8
-
3.7
2.7
2.7
1.4
1.1
Non-operating expenses
6.5
4.3
4.3
6.7
Interest expenses
1.6
3.2
2.0
0.8
Foreign exchange loss, net
3.0
0.6
1.9
5.7
Other
2.0
0.5
0.4
0.3
Extraordinary income
10.1%
109.1
10.1%
60.3
88.6
Non-operating income
96.1
9.1%
80.2
91.5
Ordinary income
98.5
67.4
Operating income
Equity in earnings of unconsolidated
subsidiaries and affiliates
Revenues related to extension of copromotion agreement
Other
9.6%
64.6
10.9%
11.7%
69.9
74.0
2.1
0.4
0.1
5.8
Gain on sales of fixed assets
0.1
-
-
0.2
Gain on change in equity interest
0.3
-
-
5.6
Gain on abolishment of retirement benefit
plan
1.1
-
Gain on disposal of recalled products
0.4
-
-
0.2
0.2
0.1
0.1
0.1
8.1
7.5
1.9
3.8
Loss on retirement of fixed assets
1.0
1.1
Impairment loss
1.6
2.4
0.1
0.7
Loss on valuation of investment securities
4.0
1.6
Loss on recall of merchandises
1.0
-
Provision of allowance for investment loss
0.0
1.5
1.2
0.3
-
-
-
1.9
0.6
1.0
0.6
0.9
90.1
101.9
62.8
76.0
35.6
52.6
36.3
20.7
0.5
-19.2
-19.1
1.3
36.1
33.5
17.2
22.0
6.9
1.0
0.3
0.7
Subsidy
Other
Extraordinary loss
Loss on transfer of business
Other
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in net income
Net income
47.1
4.9%
Change
67.4
-4-
6.2%
45.3
8.2%
53.2
28.2%
9.3%
17.4%
II-1. Subsidiaries and Affiliates
(Billions of yen)
Otsuka Pharmaceutical Co., Ltd.
Net Sales
Operating Income
FY2006
FY2007
FY2008
FY2009
380.8
413.3
440.4
465.8
40.4
65.6
53.7
65.3
(Billions of yen)
Taiho Pharmaceutical Co., Ltd.
Net sales
Operating income
FY2006
FY2007
FY2008
FY2009
131.7
128.5
91.0
120.7
28.8
23.1
11.6
14.6
* FY2008 results are for the nine-month period from July 2008 through March 2009 because of the change in fiscal
year end (as released by Taiho Pharmaceutical).
(Billions of yen)
Otsuka Pharmaceutical Factory, Inc.
Net sales
FY2006
FY2007
FY2008
FY2009
85.5
89.1
91.4
91.8
4.9
2.6
2.9
1.0
Operating income
(Billions of yen)
Otsuka Chemical Co., Ltd.
Net sales
FY2006
FY2007
FY2008
FY2009
27.9
30.1
32.5
56.4
3.9
4.9
4.5
2.3
Operating income
* FY2008 results are for the 13-month period from March 2008 through March 2009 because of a change in the fiscal
year end.
* On June 30, 2009, Otsuka Chemical Holdings Co., Ltd. merged with Otsuka Chemical Co., Ltd. with Otsuka
Chemical Holdings Co., Ltd. as the surviving corporation. The company name was subsequently changed to Otsuka
Chemical Co., Ltd. Operating results of the former Otsuka Chemical, the dissolved company, for the period April 1 –
June 29, 2009, are not included.
(Billions of yen)
Otsuka Foods Co., Ltd.
Net sales
FY2006
FY2007
FY2008
31.7
34.2
35.5
36.4
0.1
1.0
0.8
- 0.4
Operating income
(Reference)
Otsuka America Pharmaceutical, Inc.
Net sales
FY2009
(Billions of yen)
FY2006
FY2007
FY2008
FY2009
195.9
233.5
241.6
310.8
6.1
2.6
11.2
12.7
Operating income
(Billions of yen)
Otsuka Warehouse Co., Ltd.
Net sales
Operating income
FY2006
FY2007
FY2008
FY2009
29.3
31.5
31.4
30.7
1.7
1.2
1.4
1.2
-5-
II-2. Sales of Major Products
【Pharmaceutical business】
Product name
Anti-psychotic agent
Abilify
(Billions of yen)
Company
Otsuka
Pharmaceutical
FY2006
FY2007
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
Change
220.8
273.8
297.1
374.5
187.9
190.2
1.3%
193.3
231.1
237.2
305.6
151.8
152.4
0.4%
Japan
3.7
8.6
13.2
18.7
8.8
11.0
25.5%
Others
23.8
34.1
46.7
50.2
27.2
26.7
-1.8%
48.0
47.1
46.6
51.5
25.9
27.0
4.2%
Japan
35.9
41.7
42.3
45.9
22.9
23.9
4.4%
Others
12.1
5.4
4.2
5.6
3.0
3.1
3.3%
39.5
38.8
38.3
37.1
19.6
15.4
-21.2%
Japan
33.9
35.3
36.8
34.9
18.0
14.1
-21.7%
Others
5.6
3.5
3.1
2.3
1.6
1.3
-18.8%
North America
Anti-platelet agent
Pletaal
Anti-gastritis and antigastric ulcer agent
Mucosta
Otsuka
Pharmaceutical
Otsuka
Pharmaceutical
Antimetabolite
TS-1
Taiho
Pharmaceutical
33.7
37.2
46.0
37.3
19.0
18.9
-0.1%
Antimetabolite
UFT
Taiho
Pharmaceutical
26.4
25.0
25.6
18.3
9.7
8.2
-14.8%
Reduced folic acid
formulation
Uzel
Taiho
Pharmaceutical
14.4
15.7
17.7
15.2
7.9
7.3
-8.3%
Antibiotic
Zosyn
Taiho
Pharmaceutical
12.5
13.0
12.2
11.2
5.4
5.6
4.1%
Urinary incontience /
frequency treatment
P4 (BUP-4)
Taiho
Pharmaceutical
12.7
10.7
10.0
7.6
3.9
3.5
-9.6%
Oral nutrient for liver
failure
Aminoleban EN
Otsuka
Pharmaceutical
6.2
6.4
6.2
6.4
3.3
3.3
0.0%
Bronchodilator
Meptin
Otsuka
Pharmaceutical
6.8
6.6
6.1
5.9
2.8
2.7
-3.6%
H2-receptor antagonist
Protecadin
Taiho
Pharmaceutical
4.9
4.3
6.0
5.1
2.6
2.8
6.2%
Antiallergenic agent
IPD
Taiho
Pharmaceutical
3.5
3.5
4.3
2.9
1.3
1.3
0.0%
Ophthalmic solution for
treatment of
glaucoma and ocular
hypertension
Mikelan LA
Otsuka
Pharmaceutical
2.6
3.1
3.5
3.8
2.0
2.0
0.0%
Diagnostics
-total
Otsuka
Pharmaceutical
4.3
3.9
5.3
8.2
3.5
2.1
-40.0%
Parenteral nutrition
(clinical nutrition)
-total
Otsuka
Pharmaceutical
Factory
86.4
90.6
89.8
92.9
45.8
46.5
1.5%
Japan
77.1
80.5
82.4
83.0
41.7
42.0
0.8%
Others
9.4
10.1
7.4
9.9
4.2
4.5
8.1%
Pharmaceutical business
-total
(excluding exports)
Japan
300.3
322.3
345.0
312.4
158.3
155.3
-1.9%
Pharmaceutical business
-total
Total
576.1
640.2
677.7
715.9
357.6
365.1
2.1%
* The segment classification of quasi-drugs and nutritional products was changed from the pharmaceutical business to the nutraceutical business in July 2008.
* FY2008 results for Taiho Pharmaceutical are for the 15-month period from January 2008 through March 2009 because of the change in fiscal year end .
-6-
【Nutraceutical business】
Products
Company
FY2006
FY2007
FY2008
(10 thousand cases)
FY2010
Change
1-2Q
FY2009
1-2Q
FY2009
Pocari Sweat
Otsuka
1 case: 24 bottles, and other
Pharmaceutical
(10 thousand cases)
Japan
3,485
3,342
2,987
2,624
1,662
2,252
35.5%
977
1,224
1,650
1,884
827
748
-9.6%
Japan
86
262
303
187
117
62
-47.3%
Overseas
―
17
40
46
24
16
-35.3%
1,057
1,102
1,114
1,042
609
637
4.7%
Otsuka
Pharmaceutical
381
417
387
396
194
202
4.4%
Taiho
Pharmaceutical
365
423
495
428
252
278
10.3%
Taiho
Pharmaceutical
1,679
1,722
1,928
1,591
798
741
-7.1%
Overseas
SOYJOY
1 case: 48 bars
(10 thousand cases)
Oronamin C
1 case: 50 bottles
(10 thousand cases)
Calorie Mate
1 case: 4 bars×30, and other
(10 thousand cases)
Tiovita Drink
1 case: 50 bottles
(10 thousand cases)
Solmack
(10 thousand of bottles)
Otsuka
Pharmaceutical
Otsuka
Pharmaceutical,
Otsuka Chemical
* FY2008 results for Taiho Pharmaceutical are for the 15-month period from January 2008 through March 2009 because of a change in the fiscal year end.
* Overseas sales include sales of consolidated subsidiaries only.
【Consumer products business】
Products
Bottled Water
1 case: 24 bottles
(10 thousand cases)
NESCAFE
1 case: 24 bottles
(10 thousand cases)
Match
1 case: 24 bottles
(10 thousand cases)
Other (tea drinks and other)
1 case: 24 bottles
(10 thousand cases)
Company
FY2006
FY2007
FY2008
FY2009
(10 thousand cases)
FY2010
Change
1-2Q
FY2009
1-2Q
Otsuka Foods
1,178
1,300
1,102
840
528
429
-18.8%
Otsuka Foods
1,187
1,053
818
676
344
351
2.0%
Otsuka Foods
288
334
321
332
217
251
15.7%
Otsuka Foods
359
402
361
390
223
140
-37.2%
【Other business】
Products
(Billions of yen)
Company
FY2006
FY2007
FY2008
FY2009
FY2009
1-2Q
FY2010
1-2Q
Change
Functional chemicals
Otsuka Chemical
28.0
28.8
27.0
23.2
10.6
13.2
24.7%
Fine chemicals
Otsuka Chemical
13.2
13.3
14.6
13.7
7.2
7.2
0.4%
-7-
II-3. Segment Information
(Billions of yen)
Net sales by geographical segment
FY2006
FY2007
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
Change
853.9
928.5
955.9
1,084.3
553.9
574.0
3.6%
Japan
546.4
570.9
613.6
597.3
314.0
328.9
4.7%
North America
255.8
293.2
288.9
369.8
182.1
184.2
1.1%
51.8
64.4
53.4
117.3
57.8
60.9
5.4%
Net sales
Others
(Billions of yen)
Operating income by geographical segment
FY2006
FY2007
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
Change
91.5
118.3
91.5
98.5
60.3
69.9
15.8%
79.3
101.2
73.8
86.5
55.8
65.6
0.2
North America
7.2
9.8
9.9
11.3
5.3
4.3
-0.2
Others
6.4
8.0
5.2
8.4
3.8
4.3
0.1
-1.5
-0.8
2.6
-7.7
-4.7
-4.4
―
Operating income
Japan
Eliminations/corporate
(Billions of yen)
Net sales by business segment*
FY2006
FY2007
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
Change
Net sales
853.9
928.5
955.9
1,084.3
553.9
574.0
3.6%
Pharmaceutical business
576.1
640.3
651.7
715.9
357.6
365.1
2.1%
Japan
300.3
322.4
319.0
312.4
158.3
155.3
-1.9%
North America
223.0
258.3
282.9
334.7
165.9
171.9
3.7%
52.9
59.6
49.9
68.8
33.4
37.8
13.5%
―
―
217.9
247.0
133.8
144.3
7.8%
Japan
―
―
163.9
142.6
83.3
95.5
14.5%
North America
―
―
38.8
47.1
21.3
21.7
1.9%
Others
―
―
15.2
57.3
29.1
27.1
-7.0%
249.2
258.6
51.9
50.1
29.1
26.3
-9.7%
189.6
193.0
45.7
44.1
26.0
23.1
-11.4%
Overseas
59.6
65.6
6.2
6.0
3.0
3.2
5.5%
Other business
28.6
29.6
34.4
71.3
33.4
38.4
14.8%
26.5
27.9
32.4
59.7
27.1
31.8
17.2%
2.1
1.7
2.0
11.6
6.3
6.6
4.6%
337.6
385.2
395.0
525.5
259.0
268.4
3.6%
39.5%
41.5%
41.3%
48.4%
46.8%
46.8%
Others
Nutraceutical business
Consumer products business
Japan
Japan
Overseas
Overseas net sales
Overseas net sales ratio
* Effective April 1, 2009, the business segmentation was modified. The information for FY2008 has been reclassified according to the new segmentation.
(Billions of yen)
Operating income by business segment*
FY2006
FY2007
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
Change
91.5
118.3
91.5
98.5
60.3
69.9
15.8%
99.6
127.6
133.6
132.9
76.3
68.3
-10.5%
-
-
-5.2
2.3
4.4
17.1
287.4%
Consumer products business
2.0
2.4
-3.7
-8.4
-4.8
-0.2
-
Other business
2.6
1.9
2.3
4.4
2.3
3.4
43.9%
-12.7
-13.6
-35.5
-32.7
-18.0
-18.7
-
Operating income
Pharmaceutical business
Nutraceutical business
Eliminations/corporate
-8-
II-4. Selling, General and Administrative Expenses
(Billions of yen)
Selling, general and administrative
expenses
FY2006
FY2007
FY2008
FY2009
FY2009
1-2Q
FY2010
1-2Q
Change
Net sales
853.9
928.5
955.9
1,084.3
553.9
574.0
3.6%
Selling, general and administrative
expenses
450.6
478.9
541.8
629.2
310.9
311.6
0.2%
(% of net sales)
52.8%
51.6%
56.7%
58.0%
56.1%
54.3%
Promotion expenses
127.6
150.1
158.3
198.7
102.5
92.1
-10.1%
Personnel expenses
78.2
78.6
85.7
96.7
47.2
48.5
2.7%
Advertising expenses
25.1
27.8
30.1
33.2
19.4
15.4
-20.9%
105.3
101.8
135.9
151.8
67.4
80.2
18.9%
12.3%
11.0%
14.2%
14.0%
12.2%
14.0%
101.5
96.5
131.9
141.6
62.3
74.4
Research and development expenses
(% of net sales)
R&D expences of pharmaceutical
business
Number of employees (consolidated) *
Japan
Overseas
Pharmaceutical business
Number of sales representatives
(Japan)
Nutraceutical business
Consumer products business
Other business
Corporate
Number of employees (consolidated)
FY2006
FY2007
FY2008
FY2009
11,786
12,088
13,657
14,174
7,712
7,948
9,271
10,415
13,383
13,857
14,260
13,961
1,880
1,930
1,992
2,099
―
―
―
5,854
4,094
4,121
5,825
928
899
880
1,498
2,275
1,122
1,178
1,345
1,571
19,498
20,036
22,928
24,589
* Effective April 1, 2009, the business segmentation was modified.
(Billions of yen)
Capital expenditures *
Capital expenditures
FY2006
FY2007
FY2008
FY2009
35.3
58.6
63.4
62.5
18.1
45.9
16.3
21.1
-
-
36.8
23.1
13.2
6.9
0.5
0.8
Other business
1.4
1.7
2.6
7.7
Corporate
2.5
4.0
7.3
9.7
Pharmaceutical business
Nutraceutical business
Consumer products business
* Effective April 1, 2009, the business segmentation was modified. The information for FY2008 has been reclassified according to the new segmentation.
(Billions of yen)
Depreciation *
Depreciation
FY2006
FY2007
FY2008
FY2009
26.7
32.3
40.3
46.6
17.5
21.2
22.3
20.4
-
-
10.5
15.1
Consumer products business
5.1
7.0
0.7
1.1
Other business
1.3
1.5
2.5
5.3
Eliminations/corporate
2.7
2.6
4.3
4.7
Pharmaceutical business
Nutraceuticals business
* Effective April 1, 2009, the business segmentation was modified. The information for FY2008 has been reclassified according to the new segmentation.
-9-
19.4%
III. Consolidated Balance Sheets
(Billions of yen)
<Assets>
As of March
31, 2009
As of March
31, 2010
As of Sept 30,
Composition
2010
Change
622.3
751.5
750.4
52.1%
-1.1
Cash and deposits
235.8
300.7
286.4
19.9%
-14.2
Notes and accounts receivable-trade
225.8
231.7
242.1
16.8%
10.4
Marketable securities
12.2
50.2
38.9
2.7%
-11.3
Finished products and merchandise
55.3
64.2
67.4
4.7%
3.2
Work-in process
19.5
22.9
24.5
1.7%
1.6
Raw materials and supplies
29.3
28.3
28.7
2.0%
0.4
Deferred tax assets
19.9
28.3
Other
25.1
25.6
62.7
4.4%
Allowance for doubtful receivables
-0.5
-0.4
-0.3
676.5
706.8
688.7
47.9%
-18.0
244.3
260.9
260.9
18.1%
-0.0
86.4
88.4
82.4
5.7%
-6.0
Goodwill
41.6
44.8
43.9
3.1%
-0.8
Other intangible fixed assets
44.8
43.6
38.4
2.7%
-5.2
Investments and other assets
345.7
357.5
345.5
24.0%
-12.0
Investment securities
273.1
278.5
271.6
18.9%
-6.9
Investments in capital
23.6
24.3
22.4
1.6%
-2.0
4.1
3.3
Deferred tax assets
28.0
34.0
Other assets
19.7
20.0
54.4
3.8%
Allowance for investment loss
-1.3
-2.4
-2.7
Allowance for doubtful
receivables
-1.4
-0.3
-0.1
0.0
0.1
0.1
0.0%
-0.0
1,298.8
1,458.4
1,439.2
100.0%
-19.2
Current assets
Fixed assets
Property, plant and equipment
Intangible fixed assets
Long-term loans receivable
Deferred assets
Total assets
- 10 -
(Billions of yen)
As of Sept 30,
Change
Composition
2010
<Liabilities>
As of March
31, 2009
As of March
31, 2010
Total liabilities
435.0
509.9
457.7
31.8%
-52.3
Current liabilities
233.3
311.8
279.4
19.4%
-32.4
Notes and accounts payable-trade
84.2
94.0
100.6
7.0%
6.6
Short-term borrowings
37.4
62.7
42.6
3.0%
-20.1
Lease obligations
3.6
3.6
Income taxes payable
9.3
35.3
19.3
1.3%
-16.0
Reserve for bonuses
16.0
16.2
15.8
1.1%
-0.4
0.3
0.3
0.2
0.0%
Provision for directors' bonuses
Other reserves
Provision for sales returns
0.2
0.2
82.3
99.6
101.0
7.0%
Long-term liabilities
201.7
198.1
178.2
12.4%
-19.9
Long-term debt
92.8
62.4
47.9
3.3%
-14.5
5.6
7.6
15.6
13.2
40.6
45.1
44.9
3.1%
-0.2
3.2
3.3
3.2
0.2%
Other current liabilities
Lease obligations
Deferred tax liabilities
Liability for employee's retirement
benefits
Provision for directors' retirement
benefits
Other reserves
Negative goodwill
33.9
31.4
30.2
2.1%
-1.2
Other long-term liabilities
10.0
35.1
52.1
3.6%
Total net assets
863.8
948.5
981.6
68.2%
33.1
Shareholders' equity
844.8
962.1
1,008.8
70.1%
46.6
Common stock
42.9
42.9
42.9
3.0%
0.0
Capital surplus
355.8
432.5
432.5
30.0%
0.0
Retained earnings
468.1
532.0
578.7
40.2%
46.6
Treasury stock
-22.1
-45.4
-45.4
-3.2%
0.0
-35.3
-25.8
-39.6
-2.7%
-13.7
-0.7
4.3
2.3
0.2%
-1.9
-
0.0
-
-34.6
-30.1
-41.9
-
-
0.1
54.4
12.2
12.2
0.9%
0.1
1,298.8
1,458.4
1,439.2
100.0%
-19.2
<Net assets>
Valuation and translation adjustments
Unrealized gain/loss on availablefor-sale securities
Deferred loss on derivatives under
hedge accounting
Foreign currency translation
adjustments
Stock acquisition rights
Minority interests
Total liabilities and net assets
- 11 -
0.0
-2.9%
-11.8
0.1
IV. Consolidated Statements of Cash Flows
(Billions of yen)
FY2008
FY2009
1-2Q
FY2009
FY2010
1-2Q
Change
Operating activities:
Income before income taxes and minority interests
90.1
101.9
62.8
76.0
13.2
Depreciation
37.5
42.8
20.7
21.1
0.4
Impairment loss
1.6
2.4
0.1
0.7
0.7
Amortization of goodwill
0.5
1.8
0.9
1.0
0.1
Increase in liability for employee's retirement benefits
0.1
4.2
2.1
0.7
-1.4
Increase (decrease) in allowance for doubtful receivables
0.1
0.0
0.0
-0.2
-0.2
-4.1
-2.9
-1.8
-1.2
0.6
1.6
3.2
2.0
0.8
-1.2
Equity in earnings of unconsolicated subsidiaries and affiliates
-1.8
-4.9
-4.1
-3.6
0.6
Gain on change in equity interest
-0.3
-
-
-5.6
-5.6
-
-
-
1.9
1.9
Decrease (increase) in accounts receivables-trade
-7.3
0.2
-4.9
-16.5
-11.7
Increase in inventories
-9.3
-7.4
-1.0
-9.9
-8.8
Increase (decrease) in accounts payable-trade
-5.2
5.3
-3.0
10.9
13.9
-
29.9
33.6
-3.7
-37.2
5.0
19.1
4.8
-4.6
-9.3
108.4
195.5
112.1
67.9
-44.2
6.9
8.9
4.8
4.9
0.0
-1.5
-3.2
-2.0
-0.9
1.1
-55.2
-27.7
-12.9
-37.0
-24.1
58.5
173.5
102.0
34.9
-67.1
-30.2
-39.7
-17.1
-19.6
-2.5
0.7
0.2
0.1
0.3
0.2
-149.5
-28.8
-8.4
-18.9
-10.6
Proceeds from sales and redemption of investment securities
11.2
15.7
9.2
17.7
8.6
Payments for investments in capital
-2.8
-
-
-0.7
-0.7
-34.5
-
-
-
-
-
-
-
2.1
2.1
-1.5
-1.4
-0.1
0.0
0.1
0.1
0.1
0.1
0.2
0.1
-9.1
-9.0
-5.4
-6.4
-1.0
3.5
8.7
3.4
4.2
0.8
-1.7
-4.9
-1.6
-4.1
-2.4
-213.6
-59.0
-19.9
-25.2
-5.3
Increase (decrease) in short-term debt-net
19.3
13.5
23.0
-3.9
-26.8
Proceeds from long-term debt
73.6
3.5
1.1
1.9
0.8
Repayments of long-term debt
-6.4
-27.6
-22.1
-28.0
-6.0
-
-7.6
-7.8
0.0
7.8
Proceeds from issuance of common stock
94.9
-
-
-
-
Dividends paid
-4.1
-5.9
-5.9
-6.0
-0.1
Dividends paid to minority interest in consolidated subsidiaries
-1.0
-0.9
-0.6
-0.1
0.5
Other, net
-4.1
-3.1
-1.7
-1.9
-0.3
172.2
-28.1
-14.0
-38.0
-24.0
-9.7
1.0
2.1
-2.7
-4.8
7.4
87.3
70.1
-31.1
-101.2
222.6
230.1
230.1
321.3
91.2
0.1
3.9
3.9
1.5
-2.4
230.1
321.3
304.1
291.8
-12.3
Interest and dividend income
Interest expenses
Loss on transfer of business
Increase (decrease) in long-term unearned revenue
Other, net
Subtotal
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Investing activities:
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of investment securities
Purchase of investments in subsidiaries resulting in change in scope of
consolidation
Proceeds from transfer of business
Payments of loans receivables
Proceeds from collection of loans receivables
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash used in investing activities
Financing activities:
Redemption of bonds
Net cash provided by (used in) financing activities
Foreign currency translation adjustment on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from change of scope of
consolidation
Cash and cash equivalents at end of period
- 12 -
V. Shareholders
【Classification of shareholders】
(As of September 30, 2010)
Shareholder Information
Classification National and
local
government
Financial
instruments
firms
Financial
institutions
Foreign investors
Other than
Individuals
individuals
Other
institutions
Private investors
and others
Less than
trading unit
Total
Number of
shareholders
―
4
1
94
1
1
7,110
7,211
―
Number of
shares held
(shares)
―
84,018,320
193,680
147,018,654
600,000
6,000
287,320,163
519,156,817
―
% of
outstanding
shares
―
16.2
0.1
28.3
0.1
0.0
55.3
100.0
―
*41,321,260 shares of treasury stock are included in “private investors and others”
【Principal shareholders】
Names
The Nomura Trust & Banking Co.
(As of September 30, 2010)
Number of shares held
(thousand shares)
Address
% of outstanding shares
2-2-2 Otemachi, Chiyoda-ku, Tokyo
64,307
12.38
Otsuka Estate Limited
3-2-27 Ote-Dori, Chuo-ku, Osaka
40,449
7.79
Otsuka Group Employee Shareholding Fund
2-16-4 Konan, Minato-ku, Tokyo
31,313
6.03
Nomura Holdings, Inc.
1-9-1 Nihonbashi, Chuo-ku, Tokyo
12,195
2.34
Otsuka Asset Co., Ltd.
115 Kuguhara, Tateiwa, Muya-cho, Naruto,
Tokushima
12,000
2.31
The Awa Bank, Limited
2-24-1 Nishisemba-cho, Tokushima
10,970
2.11
Resona Bank, Ltd.
2-2-1 Bigomachi, Chuo-ku, Osaka
4,568
0.87
Otsuka Toshimi Fondation
3-2-27 Ote-Dori, Chuo-ku, Osaka
4,180
0.80
The Nomura Trust & Banking Co.
2-2-2 Otemachi, Chiyoda-ku, Tokyo
4,171
0.80
2-7-5 Yaesu, Chuo-ku, Tokyo
4,096
0.78
188,252
36.26
(Otsuka Founders Shareholding Fund Trust Account)
(Otsuka Group Employee Shareholding Fund Trust Account)
Mediceo Corporation
Total
-
Notes: In addition to the above, there are 41,321 thousand shares of treasury stock.
【Treasury stock】
(As of September 30, 2010)
Names
Number of shares held
(shares)
Address
(Treasury stock)
Otsuka Holdings Co., Ltd.
2-9 Kanda-Tsukasamachi, Chiyoda-ku, Tokyo
(Reciprocal share holding)
TAIHO PHARMACEUTICAL CO., LTD.
% of outstanding shares
41,321,260
7.95
1-27 Kandanishiki-cho, Chiyoda-ku, Tokyo
1,197,035
0.23
OTSUKA OHMI CERAMICS CO.,Ltd.
3-2-21 Ote-Dori, Chuo-ku, Osaka
1,185,984
0.22
Earth Chemical Co., Ltd
2-12-1 Kanda-Tsukasamachi, Chiyoda-ku,
Tokyo
222,328
0.04
Otsuka Warehouse Co., Ltd.
1-3-16 Ishida, Minato-Ku, Osaka
32,668
0.00
43,959,275
8.47
Total
―
- 13 -
IV. Pipeline Information
(As of September 30, 2010)
Development Code/Brand Name
Generic Name
Origin
Category
Indication/Dosage Form
aripiprazole
Otsuka
Pharmaceutical
Dopamine partial agonist
Schizophrenia/Depot injection
Country/
Region
Development
Status
Central nervous system
OPC-14597 (ABILIFY*)
Global
Phase III
JP
Phase III
JP
Phase III
South
Korea
Phase III
Major depression/Combination
of aripiprazole and
antidepressants
US
Phase III
Tourette syndrome/Once-weekly
tablet
US
Phase I
Manic episode associated
with bipolar I disorder/Oral
Adjunctive therapy for major
depressive disorder/Oral
Tic disorder/Oral
L059 (KEPPRA*)
levetiracetam
UCB
Anti-epileptic drug
Epilepsy (partial onset
seizures)/Oral
JP
Approved
Jul 2010
SPM-962 (NEUPRO*)
rotigotine
UCB
Dopamine agonist
Parkinson's disease/Patch
JP
Phase III
Restless legs syndrome/Patch
JP
Phase III
Adjunctive therapy for major
depressive disorder/Oral
US
Phase II
Global
Phase II
ADHD/Oral
US
Phase II
Cardiac edema/Oral
JP
Filed
Global
Phase II - III**
JP
Phase III
Hyponatremia/Oral
China
Filed
Hepatic edema/Oral
China
Phase II
Otsuka
Pharmaceutical
OPC-34712
Dopamine partial agonist
Schizophrenia/Oral
Cardiovascular
OPC-41061 (SAMSCA*)
tolvaptan
Otsuka
Pharmaceutical
Vasopressin V2-receptor
antagonist
Autosomal dominant polycystic
kidney disease/Oral
Hepatic edema/Oral
Note 1: In general, we disclose compounds that are in Phase II or later stage of development, although some compounds in Phase I are disclosed in the above table.
Note 2: Product names with asterisk '*' are the names used outside Japan.
Note 3: ** Preparation for additional study.
- 14 -
IV. Pipeline Information
(As of September 30, 2010)
Development Code/Brand Name
Generic Name
Country/
Region
Development
Status
Origin
Category
Indication/Dosage Form
Abraxis Bioscience
Anti-cancer (nanoparticle )
Breast cancer/Injection
JP
Approved
Jul 2010
NSCLC/Injection
JP
Phase III
Gastric cancer/Injection
JP
Phase II
Anti-cancer and cancer-supportive care
ABI-007
(Abraxane)
OVF
paclitaxel proteinbound particle for
injectable suspension
fentanyl
S-1
TS-1(Korea)
TS-ONE(Singapore)
愛斯万(China)
愛斯萬（Taiwan）
Cephalon
Narcotic analgesic
Cancer pain/Oral
JP
Phase III
Taiho Pharmaceutical
Anti-cancer
（Anti-metabolite）
Gastric cancer/Oral
US
Phase III
Gastric cancer/Oral
EU
Filed
JP, Asia
Phase III
Hepatocellular carcinoma/Oral
JP
Phase III
Pancreatic cancer, NSCLC/Oral
US
Phase II
Prostatic, renal cell cancer/Oral
JP
Phase II
Hepatocellular carcinoma/Oral
JP
Phase II
JP, Asia
Phase II
JP
Phase II
US, Asia
Phase II
Uterocervical cancer/Oral
TSU-68
SUGEN
Anti-cancer
（Molecular targeted drug）
Breast cancer/Oral
TAS-102
Taiho Pharmaceutical
Anti-cancer
（Anti-metabolite）
Colorectal cancer/Oral
TAS-106
Taiho Pharmaceutical
Anti-cancer
（Anti-metabolite）
NSCLC/Injection
PharmaMar
Anti-cancer
Malignant soft tissue
tumors/Injection
JP
Phase I /II
Pancreatic cancer/Injection
JP
Phase II/III
Biliary tract cancer/Injection
JP
Phase II
JP
Phase II
US
Phase II
ET-743
trabectedin
OTS102
OncoTherapy Science Therapeutic cancer vaccine
OIF
interferon α
Hayashibara
Biochemical Labs
SATIVEX*
nabiximols
GW Pharmaceuticals
Natural interferon α
Highly advanced hepatocellular
carcinoma (combination with 5FU)/Injection
Cannabinoid
(THC, CBD)
Cancer pain/Oral spray
OPB-31121
Otsuka PharmaceuticalAnti-cancer
Anti Cancer/Oral
US, Asia
Phase I
OPB-51602
Otsuka PharmaceuticalAnti-cancer
Anti-cancer/Oral
US, Asia
Phase I
OTS11101
OncoTherapy Science Therapeutic cancer vaccine
Pancreatic cancer/Injection
JP
Phase I
Note 1: In general, we disclose compounds that are in Phase II or later stage of development, although some compounds in Phase I are disclosed in the above table.
Note 2: Product names with asterisk '*' are the names used outside Japan.
Note 3: ** Preparation for additional study.
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IV. Pipeline Information
(As of September 30, 2010)
Development Code/Brand Name
Country/
Region
Development
Status
Generic Name
Origin
Category
Indication/Dosage Form
certolizumab pegol
UCB
PEGylated
anti-TNF α drug
Crohn's disease/Injection
JP
Filing
in process
Rheumatoid arthritis/Injection
JP
Phase II/III
Dry eye/Eye drops
JP
Filing
in process
US
Phase II
Dry AMD/Oral
US
Phase II
Bristol-Myers Squibb DPP-IV inhibitor
Type2 diabetes mellitus/Oral
JP
Phase II/III
Otsuka
Pharmaceutical
Anti-tuberculosis agent
Multidrug-resistant
tuberculosis/Oral
Global
Phase II
Otsuka
Pharmaceutical
Anti-inflammatory agent
Crohn's disease/Oral
JP,
Korea
Phase II/III
COPD/Oral
JP,US,
China
Korea
Phase II
JP
Phase III
JP
Phase II
Other areas
CDP870 (CIMZIA*)
OPC-12759E
rebamipide
ACU-4429
ONGLYZA*
Acucela
saxagliptin
OPC-67683
OPC-6535
YP-18
Otsuka
Pharmaceutical
tetomilast
piperacillin, tazobactam Taiho Pharmaceutical
Mucin-production
enhancing agent
Visual cycle modulator
β-lactamase inhibitorantibiotic agent
Peritonitis, intra-abdominal
abscess, liver abscess,
cholecystitis, cholangitis/
Injection
TAC-201
Meiji Dairies
Corporation
Recombinant peptide for
immunotherapy of Japanese cedar Cedar pollen allergy/Injection
pollinosis
NST-141
Nippon Shinyaku
Anti-pruritus agent
Pruritus in atopic dermatitis/
external
JP
Phase I/II
Otsuka
Pharmaceutical
Diagnostic agent of
pneumococcus infection
Extracorporeal diagnostic agent
JP
Approved
May 2010
Otsuka
Pharmaceutical
Diagnostic agent of H.pyroli
infection
Extracorporeal diagnostic agent
JP
Approved
Jun 2010
Diagnostic and prognostic agent
of MDS（myelodysplastic
syndrome）
Extracorporeal diagnostic agent
JP
Filed
Diagnostics
ODK-0501
(Rapirun pneumococcus)
ODK-0702
(Rapirun H.pylori stick)
H.pylori antibody kit
ODK-0801
(WT1 mRNA assay kit)
Wilms tumor gene-1
Otsuka
(WT1) mRNA assay kit Pharmaceutical
Note 1: In general, we disclose compounds that are in Phase II or later stage of development, although some compounds in Phase I are disclosed in the above table.
Note 2: Product names with asterisk '*' are the names used outside Japan.
Note 3: ** Preparation for additional study.
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