Outline of Consolidated Financial Results for the Year Ended March 31, 2017
May 11, 2017

Name of the listed company: NIPPON SHINYAKU CO., LTD.
Listing stock exchange: Tokyo
Code No.: 4516
URL http://www.nippon-shinyaku.co.jp/
Representative: Shigenobu Maekawa, President and Representative Director
Contact: Taro Sakurai, General Manager and Finance & Accounting Dept.
Tel. +81-75-321-9114
Scheduled date for annual general meeting of shareholders: June 29, 2017
Scheduled start of payment: June 30, 2017
Scheduled date for submission of Securities Report: June 30, 2017
Supplementary material:Yes
Financial result meeting:Yes (for institutional investors and securities analysts)* All amounts are rounded down to the nearest million yen.

1. Consolidated Results for the Year Ended March 31, 2017 (April 1, 2016 to March 31, 2017)(1) Operating results
Net salesYear ended March 31, 2017
Year ended March 31, 2016
Note:

98,781
84,20917.3%
5.3%

Comprehensive income
As of March 31, 2017: ¥13,102 million

Operating income

Ordinary income

15,2808,549

16,244
8,952(278.5%)78.7%(0.2%)(¥ million)
Net income
attributable toowners of the parent
11,749
85.3%
6,340
7.8%

81.4%
0.3%

As of March 31, 2016: ¥ 3,462 million (-65.5%)

Net income per share (¥)
Return on equity
Ordinary income toOperating income tototal assets
net sales
Basic
DilutedYear ended March 31, 2017174.42
—
10.8%
11.3%
15.5%
Year ended March 31, 2016
94.10
—
6.2%
6.8%
10.2%
Notes: 1. Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.
2. Equity-method investments: not applicable(2) Financial position
Total assets
150,905
135,370

Net assets
114,316
102,762

As of March 31, 2017
As of March 31, 2016
Note: Owners’ equity
As of March 31, 2017: ¥114,089 million(¥ million)
Net assets per share (¥)
1,693.81
1,522.33

Equity ratio
75.6%
75.8%

As of March 31, 2016: ¥ 102,549 million(3) Cash flows
Cash flows fromoperating activities
19,082
8,915

As of March 31, 2017
As of March 31, 2016

Cash flows frominvesting activities(5,916)(3,978)(¥ million)
Cash and cash
equivalents at year-end
35,914
24,748Cash flows fromfinancing activities(2,193)(1,907)

2. Dividends
Annual dividends per share (¥)

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018 (forecast)

2nd quarter

Year-end

14.00
18.00
25.00

14.00
30.00
25.00

Annual
28.00
48.00
50.00

Total
dividends(full term)(¥ million)
1,886
3,233

Payout ratio(consolidated)
29.8%
27.5%
26.9

Dividends as apercentage ofnet assets(consolidated)
1.9%
3.0%

3. Business Forecast for the Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)

Net sales

Operating income

First-half period
47,5006.7%
6,800
Full term
99,5000.7%
16,500Note: Percentage figures represent year-on-year comparisons.

4.7%
8.0%

Ordinary income

Net income
attributable toowners of the parent

7,000
17,0005,200
12,500

14.2%
4.7%

16.0%
6.4%

(¥ million)
Net income
attributable toowners of the parent
per share (¥)
77.20
185.58

4. Others(1) Changes in the scope of consolidation
Inclusion: None
Exclusion: None
Note: Changes in specified subsidiaries involved changes in the scope of consolidation(2) Changes in accounting policies and accounting estimates, and restatement
1. Changes in accounting policies arising from revision of accounting standards: None
2. Changes in arising from other factors: None
3. Changes in accounting estimates: None
4. Restatement: None
(3) Number of shares outstanding (ordinary shares)
Number of shares outstanding (including treasury stock)
As of March 31, 2017: 70,251,484 shares
As of March 31, 2016: 70,251,484 shares
Number of shares of treasury stock
As of March 31, 2017: 2,894,408 shares
As of March 31, 2016: 2,888,330 shares
Average number of shares outstanding (total for the consolidated period)
As of March 31, 2017: 67,362,340 shares
As of March 31, 2016: 67,372,315 shares
Note:
This summary of financial results is exempt from the audit procedures under the Financial Instruments and Exchange Act. At thetime of disclosure, published figures in this financial release have not been completed to an audit of financial statements based on theFinancial Instruments and Exchange Law.
The above forecasts are based on data available as of the date of release of this document as well as assumptions based on uncertain
factors, which might have a material effect on the Company’s performance in the future. Readers are advised that actual results may
differ substantially from the above forecasts due to various unforeseeable factors.

5. Consolidated Financial Statements and Notes Thereto(1) Consolidated Balance Sheet(¥ million)
As of March 31,
2016

As of March 31,
2017

AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable
Electronically recorded monetary claim
Marketable securities
Merchandise and products
Partially finished products
Work in process
Materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets¥ 20,435
34,825310
7,626
12,730
1,182
336
4,679
1,861
1,411(0)85,401¥ 30,781
36,444434
8,657
12,291
1,688
466
4,129
2,408
1,483
(0)
98,787

Fixed assets:
Tangible fixed assets:
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
Construction in progressTotal tangible fixed assets

24,210(16,760)
7,449
10,783(9,163)
1,619
8,559(7,644)
914
7,509
130
17,62425,187(17,344)
7,843
10,834(9,317)1,516
8,577(7,511)
1,066
7,463
2,153
20,043501

494

21,497
55
7,521
2,768
31,84349,968¥135,370

21,681
55
7,085
2,757
31,58052,118¥150,905

Intangible fixed assets
Investments and other assets:
Investment securities
Deferred tax assets
Long-term prepaid expenses
Other
Total investments and other assets
Total fixed assets
Total assets(¥ million)
As of March 31,
2016

As of March 31,
2017

Liabilities
Current liabilities:
Notes and accounts payable
Accrued liabilities
Accrued expenses
Income taxes payable
Consumption taxes payable
Reserve for bonuses
Other current liabilities
Total current liabilities¥ 6,759
7,111
1,203
1,929
570
2,517
476
20,569¥ 6,232
11,971
1,237
3,892
200
2,705
761
27,001Long-term liabilities:
Deferred tax liability
Reserve for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

1,19210,410
434
12,03732,607

1,121
8,064
401
9,587
36,589Net assets
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

5,174
4,445
89,658(2,413)96,864

5,174
4,445
99,897(2,450)107,0679,091(2)
17(3,421)
5,684
213
102,762¥135,370

9,235(5)11(2,217)
7,022
226
114,316¥150,905

Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Deferred gain or loss on derivatives under hedge accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

(2) Consolidated Statements of Income(¥ million)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses:
Salaries and benefits
Provision for bonuses
Provision for retirement benefits
Depreciation
R&D expenses
Sales promotion expenses
Other
Total general, selling, and administrative expenses
Operating income
Non-operating income:Interest income
Dividend received
Rent income
Foreign exchange gainGain on sales of investment securities
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Donation
Foreign exchange loss
Rent expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Impairment loss
Total extraordinary loss
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Year ended March
31, 2016

Year ended March
31, 2017¥84,20944,01640,192¥98,781
44,83553,946

8,123
1,695
776
344
9,739
2,629
8,334
31,643
8,549

8,110
1,962
907
396
14,903
3,007
9,377
38,666
15,280

26
389
368
—
259
202
1,246

39
394
439
483
0
229
1,587

3
239
216
99
284
842
8,952

3
204
—
117
298
623
16,244

—
—
8,952
2,398
207
2,605
6,346
6
¥ 6,340766
766
15,477
4,864(1,152)
3,712
11,765
15¥11,749(Consolidated Statements of Comprehensive Income)(¥ million)

Net income
Other comprehensive income
Unrealized gain or loss on available-for-sale securities
Deferred gain or loss on derivatives under hedge accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Item)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

Year ended March
31, 2016

Year ended March
31, 2017¥6,346¥11,765(509)
80(2,384)(2,884)
3,462

143
(3)
(6)
1,203
1,337
13,102

¥

3,455
6¥

13,08715

(3) Consolidated Statements of Changes in Net Assets(¥ million)
Shareholders’ equityYear ended March 31, 2016
Balance at beginning of current period
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Net changes in items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period

Balance at beginning of current period
Changes of items during the period:
Dividends from surplus
Net income attributable to ownersof the parent
Purchase of treasury stock
Net changes in items other thanshareholders’ equity
Total changes of items during theperiod
Balance at end of current period

Unrealized
gain onavailable-forsale securities¥9,600Commonstock¥5,174

Capitalsurplus¥4,445Retainedearnings¥85,137

Treasurystock¥ (2,327)

Total owners’
equity¥92,429(85)(1,819)
6,340
(85)

(85)
¥ (2,413)

4,435¥96,864(1,819)6,340–¥5,174–¥4,445

4,520¥89,658

Accumulated other comprehensive income
Deferred gain
(loss) on
Foreign
Remeasurederivatives
currency
ments ofunder hedgetranslation
definedaccounting
adjustments
benefit plans
¥(11)
¥17
¥ (1,037)

Total
Accumulated
othercomprehensive
income¥ 8,569

Non-controllinginterests
¥ 208

Total
net assets¥ 101,207(1,819)6,340(85)(509)

80(2,384)(2,884)4(2,880)(509)¥9,0918¥ (2)0¥17(2,384)¥ (3,421)(2,884)¥ 5,684

4
¥213

1,554
¥102,762(¥ million)
Shareholders’ equity

Year ended March 31, 2017
Balance at beginning of current period
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change in scope of consolidation
Net changes in items other than shareholders’ equity
Total changes of items during the period
Balance at end of current period

Balance at beginning of current period
Changes of items during the period:
Dividends from surplus
Net income attributable to ownersof the parent
Purchase of treasury stock
Disposal of treasury stock
Change in scope of consolidation
Net changes in items other thanshareholders’ equity
Total changes of items during theperiod
Balance at end of current period

Unrealized
gain onavailable-forsale securities¥9,091

Commonstock¥5,174

Capitalsurplus¥4,445Retainedearnings¥89,658

Treasurystock¥(2,413)

Total owners’
equity¥96,864(2,155)
11,749(2,155)
11,749
(36)
0645

(36)
00
645
–
¥5,1740¥4,445

10,239¥99,897

Accumulated other comprehensive income
Deferred gain(loss) on
Foreign
Remeasurederivatives
currency
ments ofunder hedgetranslation
definedaccounting
adjustments
benefit plans¥(2)¥17¥(3,421)(36)¥(2,450)

Total
Accumulated
othercomprehensive
income¥5,684

10,203¥107,067

Non-controlling
interests¥213

Total
net assets¥102,762(2,155)
11,749
(36)
0645

143

(3)

(6)

1,203

1,337

13

1,351

143
¥9,235(3)
¥(5)

(6)
¥11

1,203
¥(2,217)

1,337¥7,02213¥226

11,554¥114,316

(4) Consolidated Statements of Cash Flows(¥ million)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in reserves
Increase (decrease) in reserve for retirement benefits
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivableDecrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable
Increase (decrease) in consumption taxes payable
Increase (decrease) in other current liabilities
Foreign exchange loss (gain)
Other – net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchases of funds into time deposits
Proceeds from withdrawal of time deposits
Purchases of marketable securities
Proceeds from redemption of securities
Purchases of investment in securities
Proceeds from sales of investment securities
Purchases of tangible fixed assets
Purchases of intangible assets
Expenditures for long-term prepaid expenses acquired
Other – net
Net cash used in investing activities
Cash flows from financing activities
Dividends paid
Purchase of treasury stock
Other – net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents from newly consolidated subsidiaries
Cash and cash equivalents at end of year

Year ended March
31, 2016

Year ended March
31, 2017¥ 8,952
2,452–(5)(1,021)
(416)
3
(125)
728
101
(358)
(177)
835
194
(28)
11,136440(3)(2,657)
8,915¥15,477
2,648
766
187
(589)
(434)
3
(1,742)
352
(140)
(533)
(295)
5,908
(182)
311
21,736434(3)(3,084)19,082(442)
282(2,450)
1,000
(501)
411
(1,517)
(187)
(650)
78
(3,978)(622)
442(3,633)2,948(1)
0(4,131)
(221)
(864)
166
(5,916)(1,819)(85)(2)(1,907)(194)
2,833
21,914–¥24,748(2,154)(36)(1)(2,193)125
11,09824,74867¥35,914