Outline of Consolidated Financial Results for the Year Ended March 31, 2016
May 12, 2016

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, 2016
Scheduled start of payment: June 30, 2016
Scheduled date for submission of Securities Report: June 30, 2016
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, 2016 (April 1, 2015 to March 31, 2016)(1) Operating results
Net sales

Operating income

Ordinary income(¥ million)
Net income attributableto owners of the parent

Year ended March 31, 2016

84,209

5.3%

8,549

(0.2%)

8,952

0.3%

6,340

7.8%

Year ended March 31, 2015

79,991

4.5%

8,562

6.5%

8,928

3.8%

5,882

2.3%

Note:

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

As of March 31, 2015: ¥10,026 million

51.1%

Net income per share (¥)
Return on equity
Ordinary income toOperating income tototal assets
net sales
Basic
DilutedYear ended March 31, 2016
94.10
—
6.2%
6.8%
10.2%
Year ended March 31, 2015
87.26
—
6.1%
7.2%
10.7%
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
135,370
129,757Net assets
102,762
101,207

As of March 31, 2016
As of March 31, 2015
Note: Owners’ equity
As of March 31, 2016: ¥102,549 million(¥ million)
Net assets per share (¥)
1,522.33
1,498.88

Equity ratio
75.8%
77.8%

As of March 31, 2015: ¥100,998 million(3) Cash flows
Cash flows fromoperating activities
8,915
6,113

As of March 31, 2016
As of March 31, 2015

Cash flows frominvesting activities(3,978)(3,718)(¥ million)
Cash and cash
equivalents at year-end
24,74821,914

Cash flows fromfinancing activities(1,907)(1,773)

2. Dividends
Annual dividends per share (¥)

Year ended March 31, 2015
Year ended March 31, 2016
Year ending March 31, 2017 (forecast)

2nd quarter

Year-end

12.00
14.00
17.00

13.00
14.00
18.00

Annual25.00
28.00
35.00

Total
dividends(full term)(¥ million)
1,684
1,886

Payout ratio(consolidated)
28.7%
29.8%
27.7%

Dividends as apercentage ofnet assets(consolidated)
1.7%
1.9%

3. Business Forecast for the Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)

Net sales

Operating income

First-half period
41,5005.3%
3,200
Full term
93,00010.4%
11,500Note: Percentage figures represent year-on-year comparisons.

51.6%
34.5%

Ordinary income
3,350
11,900

43.4%
32.9%

Net income
attributable toowners of the parent
2,200
8,500

44.4%
34.1%

(¥ million)
Net income
attributable toowners of the parent
per share (¥)
32.66
126.18

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: Yes
2. Changes in arising from other factors: Yes
3. Changes in accounting estimates: Yes
4. Restatement: None
(3) Number of shares outstanding (ordinary shares)
Number of shares outstanding (including treasury stock)
As of March 31, 2016: 70,251,484 shares
As of March 31, 2015: 70,251,484 shares
Number of shares of treasury stock
As of March 31, 2016: 2,888,330 shares
As of March 31, 2015: 2,868,940 shares
Average number of shares outstanding (total for the consolidated period)
As of March 31, 2016: 67,372,315 shares
As of March 31, 2015: 67,405,505 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(1) Consolidated Balance Sheet(¥ million)
As of March 31,
2015

As of March 31,
2016

AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable
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¥11,84135,010
10,79912,936
1,737
321
4,663
1,698
1,413
(0)
80,422¥20,435
35,135
7,626
12,730
1,182
336
4,679
1,861
1,411
(0)
85,401

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 progress
Total tangible fixed assets

23,645(17,482)
6,163
11,006(10,011)
994
8,814
(8,102)
711
7,449
74
15,39324,210(16,760)
7,449
10,783(9,163)
1,619
8,559(7,644)
914
7,509
130
17,624458

501

22,078
57
8,287
3,059
33,48249,334¥129,757

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

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 31,2015

As of March 31,2016

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¥7,118
3,472
1,236
2,161
748
2,523
511
17,770¥6,759
7,111
1,203
1,929
570
2,517
476
20,569Long-term liabilities:
Deferred tax liability
Net defined benefit liability
Other long-term liabilities
Total long-term liabilities
Total liabilities

2,286
7,997
495
10,77928,550

1,192
10,410434
12,03732,607

Net assets
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

5,174
4,445
85,137(2,327)92,4295,174
4,445
89,658(2,413)96,8649,600(11)17(1,037)
8,569
208
101,207¥129,757

9,091(2)17(3,421)
5,684
213
102,762¥135,370

Accumulated 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 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 gain
Gain on sales of investment securities
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Donation
Foreign exchange loss
Rent expenses
PCB waste treatment expenses
Other
Total non-operating expenses
Ordinary income
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, 2015

Year ended March
31, 2016¥79,991
41,226
38,764¥84,20944,01640,192

7,935
1,712
851
317
8,968
2,009
8,406
30,202
8,562

8,123
1,695776
344
9,739
2,629
8,334
31,643
8,549

28
357
365
46—
142
939

26
389
368
—
259
202
1,246

3
226—
106
100
136
573
8,928
8,928
2,705
333
3,039
5,889
7
¥5,882

3
239
216
99
—
284
842
8,952
8,952
2,398
207
2,605
6,346
6
¥6,340(Consolidated Statements of Comprehensive Income)(¥ million)

Net income
Other comprehensive income (loss)
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 (loss)
Comprehensive income(Item)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

Year ended March31, 2015

Year ended March
31, 2016¥5,889¥6,346

3,758
(13)
22369
4,136
10,026(509)
80(2,384)(2,884)
3,462

10,018
¥7

3,455
¥6

(3) Consolidated Statements of Changes in Net Assets(¥ million)
Shareholders’ equity

Year ended March 31, 2015
Balance at beginning of current period
Cumulative effect of changes in accounting policiesRestated balance
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
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
Cumulative effect of changes inaccounting policies
Restated balance
Changes of items during the period:
Dividends from surplus
Net income attributable to ownersof the parent
Purchase of treasury stock
Disposal 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¥5,841

5,841

Commonstock¥5,174

Capitalsurplus¥4,445

5,174

4,445

Retainedearnings¥81,105(232)
80,873(2,175)

Total owners’
equity¥88,549(232)
88,317(152)0(1,617)
5,882
(152)
0(152)¥(2,327)

4,111¥92,429

Treasurystock¥(2,175)(1,617)5,882
0–¥5,1740¥4,445

4,264¥85,137

Accumulated other comprehensive income
Deferred gain
RemeasureForeign(loss) on
ments ofcurrency
derivatives
definedtranslation
under hedge
benefit plansadjustments
accounting¥1¥(4)¥(1,406)1(4)(1,406)

Total
Accumulated
othercomprehensive
income¥4,432

Non-controlling
interests
¥204

4,432

204

Total
net assets¥93,186(232)
92,954(1,617)
5,882
(152)
0

3,758

(13)

22

369

4,136

4

4,141

3,758
¥9,600

(13)
¥(11)

22
¥17369¥(1,037)

4,136¥8,569

4
¥208

8,252
¥101,207(¥ million)
Shareholders’ equity

Year 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
Disposal 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
Disposal of treasury stock
Net changes in items other thanshareholders’ equity
Total changes of items during theperiodBalance 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
RemeasureForeign(loss) on
ments ofcurrency
derivatives
definedtranslation
under hedge
benefit plansadjustments
accounting
¥(11)
¥17
¥(1,037)

Total
Accumulated
othercomprehensive
income¥8,569Non-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

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

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in reserves
Increase (decrease) in reserve for retirement benefits
Interest and dividend income
Interest expenses
Loss (gain) on disposal of fixed assets
Decrease (increase) in notes and accounts receivable
Decrease (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 depositsProceeds from withdrawal of time deposits
Purchases of marketable securities
Proceeds from redemption of marketable securities
Purchases of investment in securities
Proceeds from sales of investment in 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 at end of year

Year ended March
31, 2015

Year ended March
31, 2016¥8,9282,665
54(547)(385)
348(873)(3,925)
219
1,019
350
179
(41)
122
7,819
385
(3)
(2,087)
6,113¥8,9522,452(5)(1,021)
(416)
3
86
(125)
728
101(358)
(177)
835
194
(114)
11,136440(3)(2,657)
8,915

(382)
422
(500)
–
(1,000)–(1,156)(109)(1,070)78(3,718)(442)
282(2,450)
1,000
(501)
411
(1,517)
(187)
(650)
78
(3,978)(1,618)(152)(2)(1,773)63
684
21,229¥21,914(1,819)(85)(2)(1,907)(194)
2,833
21,914¥24,748