Maruho Report 2021

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 (2) Other businessesWith regard to the businesses of Maruho 40Sales Revenues from external customers Transactions with other segmentsNet salesOperating profitSales Revenues from external customers Transactions with other segmentsNet salesOperating profit (loss)2020.980,849-80,84912,7892020.98,105498,155(455)2021.9Increase (Decrease)87,721287,72421,8156,87226,8749,0262021.9Increase (Decrease)9,0336429,6762269275921,520681(Millions of yen)(Millions of yen)During the consolidated fiscal year under review (October 1, 2020 to September 30, 2021), the Japanese economy remained in a severe condition due to the impact of COVID-19, though some signs of recovery began to be seen. The pharmaceutical business, the field on which the Maruho Group is based, suffered a stagnant market partly due to the “off-year” revision of drug prices. The fields of springs, medical devices and components, and machinery, which are the businesses of Maruho Hatsujyo Kogyo Co., Ltd., were also affected by the COVID-19 pandemic. Under these circumstances, upholding our Corporate mission “to contribute to better health for people all over the world”, we promoted the initiatives of the first year of the Fourth Medium-Term Plan (October 2020 to September 2023) to accelerate further growth under Long-Term Vision 2011 “Excellence in Dermatology,” aiming to make outstanding contributions in dermatology. As a result, net sales of the consolidated fiscal year under review marked a record high of 96,754 million yen (up 8.8% from the previous fiscal year). In terms of profits, all profit items also marked record highs, with operating profit of 21,942 million yen (up 77.9%), ordinary profit of 21,112 million yen (up 96.9%), and profit attributable to owners of parent of 14,902 million yen (up 135.9%).Total assets at the end of the consolidated fiscal year under review increased 12,863 million yen from the previous fiscal year, to 164,257 million yen. Fixed assets decreased 5,250 million yen mainly because the amount of depreciation exceeded capital investment, while current assets increased 18,113 million yen due to the significant increase in sales and profits, which resulted in increases in (1) Pharmaceutical businessSales of acne vulgaris treatment agent BEPIO Pharmaceutical business (Mainly manufacture and marketing of prescription drugs)Other businesses(Springs, medical devices and components, and machinery)and blood-flow accelerative/skin-moisturizing agent Hirudoid both increased as a result of the efforts to promote continuous treatment for BEPIO Gel and to encourage proper use for Hirudoid. Sales of anti-herpes virus agent Amenalief showed steady performance due to the co-promotion in Japan with Meiji Seika Pharma Co., Ltd. Besides these, sales of medical devices and other new items have also been expanding. As a result, net sales in our pharmaceutical business reached 87,724 million yen (up 8.5% from the previous fiscal year), with operating profit of 21,815 million yen (up 70.6%).cash and deposits as well as notes and accounts receivable. Total liabilities decreased 2,168 million yen from the previous fiscal year, to 21,400 million yen. Specifically, the decrease is composed of a 1,704 million yen decrease in current liabilities and a 463 million yen decrease in non-current liabilities. Total net assets increased 15,031 million yen, to 142,857 million yen, mainly due to the increase  Hatsujyo Kogyo, etc., orders for springs related to automobiles increased, while overseas sales of medical devices and components, and sales of machinery both inside and outside Japan, increased steadily. As a result, net sales in the springs, medical devices and components, and machinery businesses reached 9,676 million yen (up 18.6 from the previous fiscal year), with operating profit of 226 million yen (a segment loss of 455 million yen was recorded in the previous fiscal year).Please note that the above segment net sales and operating profit figures include intersegment transactions, and therefore their total amounts are not consistent with the figures of net sales and operating profit provided in the consolidated statement of income.as a result of the recording of profit attributable to owners of parent. The current ratio increased 132.6 percentage points from the previous fiscal year, to 590.5%, and the equity-to-asset ratio increased 2.6 percentage points year on year, to 86.3%, both maintaining a high level. We thus maintain sufficient health in terms of both short-term and long-term solvency.■Business performance■Financial positionBusiness Performance and Financial Analysis