Summary Report of Consolidated Financial Results
For the Fiscal Year ended March 31, 2019
May 9, 2019stCompany name: NIPRO CORPORATION
TSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko Sano, President and Representative Director
Contact person: Takehito Yogo, Director and General Manager of Corporate Planning Headquarters
TEL: (06)6372-2331
Date of the ordinary general shareholders’ meeting: June 26, 2019
Payment date of cash dividends: June 27, 2019
Filing date of annual reporting: June 26, 2019
Supplemental material on financial results: Yes
Presentation on annual results: Yes (for institutional investors and analysts)(Note: Amounts less than one million yen are rounded down)
1. Consolidated Results for the year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Consolidated Results of Operations(%: Changes from the previous fiscal year)
Profit attributable to
Net Sales
Operating Income
Ordinary Income
owners of parent
Millions of yen %Millions of yen %Millions of yen %Millions of yen %Year ended March 31, 2019
426,399 7.8
23,827 (12.0)
22,431 (1.1)
12,136 2.6Year ended March 31, 2018395,397 9.9
27,088 (5.8)
22,684 (2.1)
11,829 4.3
Note: Comprehensive income

Year ended March 31, 2019: (1,838) million yen ( - %)Year ended March 31, 2018: 13,492 million yen (25.5 %)DilutedEarnings
per share

Earnings per
share

Year ended March 31, 2019Year ended March 31, 2018
Note: Equity in profit (loss) of affiliate

Yen
73.68
71.15

Yen
66.75
64.51

Year ended March 31, 2019: 78 million yen(2) Consolidated Financial Position
Total Assets
Millions of yen
As of March 31, 2019845,821
As of March 31, 2018826,447
Note: Equity(3)

March 31, 2019: 161,488 million yen

%
2.7
2.9

Year ended March 31, 2018: 113 million yen

Net Assets
Millions of yen
171,830
183,485

Equity Ratio
%
19.1
20.9

Net assets per share
Yen
990.14
1,037.25

Cash flows fromfinancing activities
Millions of yen
12,64647,341

Cash and cash
equivalents
Millions of yen
120,310
135,599

March 31, 2018: 172,621 million yen

Cash flows fromoperating activities
Millions of yen
41,362
41,046

Cash flows frominvesting activities
Millions of yen(64,712)(64,140)

Dividends
Firstquarter

Annual dividends per year
SecondThirdYear-end
dividends
quarterquarter

Annualdividends

Annual totalof dividends

Pay-out ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

17.50

-

11.00

28.50

4,748

40.1

2.8

-

19.00

-

9.00

28.00

4,592

38.0

2.8

-

16.00

-

17.00

33.00

Yen
Year ended March
31, 2018
Year ended March
31, 2019
Year ending March
31, 2020 (Forecast)3.

Ratio ofoperatingincome to net
sales
%
5.6
6.9

Ratio of ordinary
income to total
assetsConsolidated Cash Flows

Year ended March 31, 2019Year ended March 31, 20182.

Raito of net
income toshareholders’equity
%
7.3
7.0

35.9

Forecast of Consolidated Financial Results for the Year ending March 31, 2020 (From April 1, 2019 to March 31, 2020)(%: Changes from the corresponding period of the previous fiscal year)
Profit attributable
OperatingEarnings
Net Sales
Ordinary Income
to owners of
Incomeper Share
parentMillions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
Six months ending Sept. 30, 2019
227,000
9.0
13,2009.8
12,900
(5.8)
7,200
(5.5)
44.15
Year ending March 31, 2020
461,500
8.2
27,50015.4
26,10016.4
15,00023.6
91.97

*Notes(1) Change in Significant Subsidiaries during the Current Period: No(Change in specified subsidiaries caused a change in the scope of consolidation)
Additional: 0Removal: 0(2) Change in Accounting Policies and Accounting Estimate and Restatement[1] Changes in accounting policies by a newly issued accounting pronouncement: No[2] Changes other than [1]: No[3] Change in accounting estimate: No[4] Restatement: No(3) Issued Shares (Common stock)[1] Number of issued shares at the end of the period (including treasury stock):
Year ended March 31, 2019:
171,459,479 sharesYear ended March 31, 2018:
171,459,479 shares[2] Number of treasury stock at the end of the period:
Year ended March 31, 2019:
8,361,856 sharesYear ended March 31, 2018:
5,037,124 shares[3] Average number of shares during the period:
Year ended March 31, 2018:
164,723,144 sharesYear ended March 31, 2018:
166,276,706 shares
Note: Number of the treasury stocks as of March 31, 2018 included 196,100 shares owned by Trust and Custody
Service Bank, Ltd (Trust Account E).
(Reference) Overview of the Unconsolidated Financial Results
1. Unconsolidated Results for the Year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Results of Operations(%: Changes from the previous fiscal year)
Net sales
Operating income
Ordinary income
Net income
Millions of yen %Millions of yen %Millions of yen %Millions of yen %Year ended March 31, 2019
310,603
14.7
12,708(17.6)
17,3995.2
12,231(0.3)
Year ended March 31, 2018
270,844
8.9
15,426(4.8)
16,542(1.3)
12,272
1.2

Yen
74.25
73.81

Diluted earnings
per share
Yen
67.27
66.92

Total assets
Millions of yen
654,743622,679

Net assets
Millions of yen
171,014
172,933

Earnings per share
Year ended March 31, 2019Year ended March 31, 2018

(2) Financial Position

Year ended March 31, 2019Year ended March 31, 2018
Note: Equity Year ended March 31, 2019: 171,014 million yen

Equity ratio
%
26.1
27.8

Net assets per share
Yen
1,048.54
1,039.12

Year ended March 31, 2018: 172,933 million yen*This summary report is exempt from audit procedure based on the Financial Instruments and Exchanges Act.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and other specialnotes
The projection figures shown above are based on information that was available at the time of preparation and may
contain certain uncertainties. Actual performance and other factors may differ from these projections due to changes incircumstances and other developments. More information concerning these forecasts can be found in P.4 “1. Overview
of Business Results (3) Future Outlook” in the attachment.

Table of Contents
1.

Overview of Business Results2(1) Overview of FY2018 Business Results2(2) Overview of FY2018 Financial Position

4(3) Future Outlook

4(4) Basic Policy on Distribution of Profits and Dividends
for Fiscal Years Ending March 31, 2019 and March 31, 2020

42.

Corporate Group

6

3.

Management Policies

8(1) Basic Management policy

8(2) Target Management Indicators

8(3) Medium- to Long-term Management Strategies8(4) Issues and Challenges Facing the Group9

4.

Basic Principles Underlying the Concept of Accounting Standards

105.

Consolidated Financial Statements and Major Notes

11(1) Consolidated Balance Sheets

11(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income

6.

13(3) Consolidated Statements of Shareholders’ Equity

15(4) Consolidated Statements of Cash Flows

17(5) Notes Regarding Consolidated Financial Statements

19(Notes Related to Going Concern)

19(Basis of Preparation for the Consolidated Financial Statements)

19(Additional Information)

22(Notes Regarding Consolidated Balance Sheets)

22(Notes Regarding Consolidated Statements of Income)

22(Notes Regarding Consolidated Statements of Shareholders’ Equity)

22(Segment Information)

24(Per Share Information)

28(Material Subsequent Event)28

Non-consolidated Financial Statements

29(1) Non-consolidated Balance Sheets

29(2) Non-consolidated Statements of Income32(3) Non-consolidated Statements of Shareholders’ Equity

33

-1-

1.

Overview of Business Results(1) Overview of FY2018 Business Results[1] Overview of FY2018
During the consolidated fiscal year under review, the sense of uncertainty about the future heightened in the global
economy due to the impact from US-China trade frictions and movements in the UK's Brexit negotiations, as countries
turned inwards in response to US protectionist policies. Regarding foreign exchange movements, while major currencies
remained within a relatively small fluctuation range throughout the year, some emerging economy currencies saw
significant falls. Meanwhile, in the Japanese economy, corporate earnings continued to recover steadily.
There was a significant impact in the medical device and pharmaceutical industries from the 2018 drug price revisions.
Conditions are harsher as drug price revisions continue annually, with further planned in accordance with the revision of
the consumption tax scheduled for October of this year. Even under these circumstances, the Nipro Group has madeefforts to achieve top share in Japan, increase international sales and cut production costs, and worked to improvebusiness performance, advancing the development of the products which are more concerned about the users.
As a result, sales for the current consolidated fiscal year increased YoY by 7.8% to 426,399 million yen due to favorable
sales in the Medical-Related Business and the Pharmaceutical-Related Business. Regarding profit, in addition to theimpact from drug price revisions, operating profit decreased by 12.0% YoY to 23,827 million yen due to an increase in theelimination amount of intercompany profit contained in inventories as a result of inventory transfers due to the integrationof marketing operations and increases in expenses and research and development costs relating to regenerative medicine
products. However, ordinary profit turned out to decrease YoY by 1.1% to 22,431 million yen due to an increase in
non-operating income and a decrease in foreign exchange losses. Furthermore, due to the recording of significant
non-current asset impairment losses in a subsidiary during the previous fiscal year, profit before income taxes was
significantly higher in this fiscal year. However, while corporate income tax was low in the previous year due to the tax
effects of the merging of unprofitable subsidiaries, income tax for the current period relatively increased YoY owing to the
reduction in loss-making subsidiaries. As a result, profit attributable to owners of parent increased YoY by 2.6% to 12,136
million yen.
The overview of the results for the current period under review by business segment is as follows.
From the current period under review, we made changes to the reporting segments. For more information, please refer
to “5. Consolidated Financial Statements and Major Notes (5) Notes Regarding Consolidated Financial Statements(Segment Information)”. The following year-on-year comparisons have been calculated using numerical values of the lastyear which have been rearranged into the revised segments.

a.

Medical-Related Business
The market environment in domestic sales became severe as medical fees and drug prices were revised in April of lastyear. Under these circumstances, in the Medical Sales Division, sales remained solid in each category of
injection-transfusion products, enteral-alimentation products, testing products, dialysis products, and cardiovascular
products and cardiac surgery (CVS) products. Sales growth was particularly high for SAFETOUCH™ infusion system next
to HDF filters (dialysis products) and dialysis machines. In the Pharmaceutical Sales Division, sales showed favorable
increase owing to strengthened sales promotion of anti-allergic agent Bepotastine Besilate (TALION AG). In addition,
sales of oral and external use drugs and sales of injection grew mainly centered on dispensing pharmacies and DPC
hospitals, respectively, owing to the effects of collaborations with pharmaceutical wholesalers. Moreover, in regard toregenerative medicine, for the regenerative medicine for use in spinal cord injury treatments “Human (autologous) bonemarrow-derived mesenchymal stem cells” (brand name: Stemirac® Injection) that we have been jointly developing with
Sapporo Medical University, we obtained approval with conditions and time limit on December 28, 2018 and it was listed in
the National Health Insurance (NHI) drug price standard as of February 2019.
Meanwhile, overseas, as a result of continuous proactive sales activities around the world, sales of mainstay dialysis
products such as dialyzers and dialysis machines grew steadily. In Latin America, our self-established dialysis centers-2-operated smoothly in Guatemala and Ecuador, and moreover, we established a new dialysis center in Ecuador. We willcontinue to promote establishment of self-established dialysis centers to provide optimum treatment environments rooted
in the local area as well as medical training facilities. Furthermore, we established a new sales base in Zhengzhou,
Henan Province, China and continue to reinforce the local direct sales system.
Regarding our overseas production bases, the two-line framework for dialyzer production at the factory in Hefei/China
operated smoothly and profitability was greatly enhanced as a result of enhanced productivity. At the same time asstarting the operation of a second line at our factory in India this year, we are introducing third lines. We will continue tostrengthen the overseas production framework of dialyzer in response to growing and expanding demand.
As a result, net sales of this business increased 9.1% YoY to 327,359 million yen.

b.

Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business, we have promoted the contract manufacturing and contract development ofpharmaceuticals to respond accurately to the diverse needs of our corporate customers. We have focused on proposals
for the comprehensive contract manufacturing of oral, injection and external use drug formulations manufacturable by the
Nipro Group in addition to various highly pharmacologically active formulations such as antibiotics, steroids, andcarcinostatic agents. Furthermore, we have also focused on the manufacturing of investigational drugs and the contract
services for inspection and packaging. Moreover, we have also been proactive in the proposal-based sales of the use andset-packaging proposals of pharmaceutical containers and administration systems which we have developed and forwhich we own production frameworks.
In the pharmaceutical production division, we acquired two pharmaceutical manufacturing facilities to correspond toincreased production and worked to further strengthen manufacturing capability.
As a result, net sales of this business increased 5.7% from the previous year to 63,482 million yenc.

PharmaPackaging BusinessIn the PharmaPackaging Business, which handles primary containers as well as medical devices such as devices forthe preparation and administration of pharmaceuticals, we delivered a framework which can contribute to the lifecycle
management of pharmaceuticals through one-stop solutions owing to the integration between the Medical System
Development Department and the Medical System Sales Department within the Pharmaceutical Division from this fiscal
year.
Overseas, sales in China was affected by production adjustment due to an extreme summer heat and shortage of drug
supply in pharmaceutical companies, however, sales of bottles for oral liquid remained favorable due to growth intraditional Chinese medicine market. In Europe and the United States, orders from the large German pharmaceuticalcompanies remained at a high level. Moreover, demand for glass tube increased in France and sales of vials increased asa result of reinforcement of technical sales in the United States. Export of vials and ampules remained solid in Russia andwe launched the sales of products manufactured in the new processing plant with state-of-the-art equipment in India.
In the domestic market, while thermos bottle glass bulb sales were impacted by production adjustments fromprocessing manufacturers, stable domestic sales of glass tubes contributed to sales growth amid ongoing tightening
global demand. Sales of special needles were boosted by an increase in demand overseas, leading to an increase inincome and profit. Also, the continuous introduction of new equipment at the Biwako Plant contributed sales of highrevenue vials. In product development, we strived to develop problem solving products that respond to the needs of new
customers.
As a result, net sales of this business increased 1.0% YoY to 35,526 million yen.

d.

Other BusinessAmong other business, net sales from the real-estate rental business, etc. were 31 million yen (up 5.6% YoY).

-3-

(2) Overview of FY2018 Financial Position[1] Assets, liabilities, and net assets
Total assets increased 19,374 million yen from the end of the previous consolidated fiscal year to 845,821 million yen at
the end of the current consolidated fiscal year under review. Current assets increased 13,865 million yen and noncurrent
assets increased 5,508 million yen. The main reason for the increase in current assets was an increase of 8,458 million
yen in notes and accounts receivable-trade. The main reason for the increase in noncurrent assets was an increase of
6,675 million yen in buildings and structures, net.
Total liabilities increased 31,029 million yen from the end of the previous consolidated fiscal year to 673,990 million yen.
Current liabilities increased 23,093 million yen and noncurrent liabilities increased 7,936 million yen. The main reason for
the increase in current liabilities was an increase of 21,631 million yen in short-term loans payable, and the main reason
for the increase in noncurrent liabilities was an increase of 6,400 million yen in bonds payable.
Total net assets decreased 11,655 million yen from the end of the previous consolidated fiscal year to 171,830 million
yen. Shareholders' equity increased 2,327 million yen and accumulated other comprehensive income decreased 13,460
million yen.

[2] Consolidated cash flow
The ending balance of cash and cash equivalents decreased 15,289 million yen from the end of the previous
consolidated fiscal year to 120,310 million yen at the end of the current consolidated fiscal year under review.
(Cash flows from operating activities)
Net cash provided by operating activities was 41,362 million yen. The main accounts of cash inflow were profit before
income taxes, 21,233 million yen and depreciation, 35,252 million yen. The main account of cash outflow was increase innotes and accounts receivable-trade, 12,278 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 64,712 million yen. The main account of cash outflow was purchase ofnon-current assets, 55,980 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 12,646 million yen. The main account of cash inflow was proceeds fromlong-term loans payable, 88,813 million yen. The main account of cash outflow was repayment of long-term loans payable,
68,368 million yen.

(3) Future Outlook
Going forward, we believe that the global economy will continue to see countries move towards prioritizing their own
economies. Even under these circumstances, the Nipro Group, based on the concept of "local production andconsumption", will further advance globalization and the development of the products and technologies that keep the users’
viewpoints in mind, and achieve our FY2020 consolidated net sales target of 500 billion yen while adhering to thephilosophy of contributing to society through technological innovation.
Our forecasts for the fiscal year ending March 31, 2020 include consolidated net sales of 461,500 million yen (up 8.2%
YoY), operating profit of 27,500 million yen (up 15.4% YoY), ordinary profit of 26,100 million yen (up 16.4% YoY), and profit
attributable to owners of parent of 15,000 million yen (up 23.6% YoY). In Japan, while drug price revisions will be performed
next fiscal year again due to consumption tax revision, by providing safe and secure products in a timely manner to theglobal markets, in which demand is still strong, we will achieve further business expansion and social contributions.

(4) Basic Policy on Distribution of Profits and Dividends for Fiscal Years Ending March 31, 2019 and March 31, 2020
We position profit return as an important management measure and will provide dividends to our shareholders. Internal
reserves will be invested in sales & marketing, production, and research and development divisions, widening
management frameworks and ensuring long-term business development, so as to obtain stable and sustainable growth-4-

going into the future.
We plan an annual dividend of 28.00 yen per share and, as we have already paid an interim dividend of 19.00 yen per
share, the year-end dividend is to be 9.00 yen per share, which will be proposed to the Company’s 66th ordinary general
meeting of shareholders.
We plan to make the dividend for the year ending March 31, 2020 inherit current basic policy while changing to betterreflecting consolidated income.

-5-

2.

Corporate GroupOur group consists of the Reporting Company (“the Company”), its 88 subsidiaries and 17 affiliates and is primarily
engaged in manufacture and sale of medical equipment, pharmaceutical products and material products such as glass for
medical use.
Positioning of each company in connection with the businesses of our group and the relation to the business segment
are as follows:<Medical-Related Business>
Domestic:

The Company, Nipro Medical Industries Co., Ltd. and Goodman Co., Ltd. manufacture medical
equipment, and the Company and Goodman Co., Ltd. sell medical equipment manufactured by its
foreign subsidiaries.
Cell Science & Technology Institute, Inc., develops, manufactures and sells cell-culture-related
products.
NexMed International Co., Ltd. develops, manufactures and sells orthopedic medical equipment.
Nipro ES Pharma Co., Ltd. purchases products from the Company and its subsidiaries and sells
generic drugs.
Nichihos Co., Ltd. manages dispensing pharmacies and sells pharmaceutical products.

Overseas:

Nipro (Thailand) Corporation Ltd., Nipro (Shanghai) Co., Ltd. (China) and Nipro India Corporation
Private Limited (India) and other subsidiaries purchase some raw materials and machinery for theirproduction from the Company, manufacture medical equipment, and sell them through the Company
and its subsidiaries as well as locally on their own.
Nipro Medical Europe N.V. (Belgium), Nipro Medical Corporation (U.S.A.) and Nipro Trading(Shanghai) Co., Ltd. (China) and other sales subsidiaries purchase products mainly from the Company
and its subsidiaries, and sell medical equipment etc. in the areas of their locations.

<Pharmaceutical-Related Business>
Domestic:

The Company, Nipro Pharma Corporation and Zensei Pharmaceutical Industries Co., Ltd.
manufacture and sell pharmaceutical products.

Overseas:

Nipro Pharma Vietnam Co., Ltd. manufactures pharmaceutical products and Nipro Pharma
Corporation sells them.

< PharmaPackaging Business >Domestic:

The Company sells glass tubes as well as manufactures and sells glass products.

Overseas:

Nipro PharmaPackaging (Shanghai) Co., Ltd. purchases some raw materials through the Company
and sells them to its subsidiaries in China such as Chengdu Pingyuan Nipro Pharmaceutical Packaging
Co., Ltd.
Subsidiaries such as Nipro PharmaPackaging Americas Corp. (U.S.A.), Nipro PharmaPackaging
France S.A.S. (France), Nipro PharmaPackaging Germany GmbH (Germany), Nipro PharmaPackaging
India Private Limited (India), and Chengdu Pingyuan Nipro Pharmaceutical Packaging Co., Ltd. (China)
manufacture and sell tube glass, vials and ampoules, etc. for medical use focusing on their eachlocation.

<Other business>
The Company manufactures (purchases, in some cases) and sells production machinery for medical
equipment and is engaged in leasing of real estate properties.
Nissho Insurance & Travel Co., Ltd. operates non-life insurance agency and travel businesses mainly
for the group companies.
Nipro Europe Group Companies N.V. (Belgium) and Nipro (China) Holdings Co. Ltd. mainly
supervises businesses of subsidiaries in each region.
The above explanations are illustrated as follows:-6-

（Domestic）
Medical-Related Business《Manufacture and Sale》◎Nipro Medical Industries Co.,Ltd.
◎Goodman Co.,Ltd.

ニ
プ
ロ
株
式
会
社

(Overseas)
Medical-Related Business《Sale》◎Nipro Medical Europe N.V.
◎Nipro Medical Corporation◎Cell Science & Technology Institute,Inc.

◎Nipro Trading (Shanghai) Co.,Ltd.

◎NexMed International Co., Ltd.
and 4 unconsolidated subsidiaries◎Nipro Asia Pte Ltd◎Nipro Medical (India) PVT LTD.

and 1 affiliated company◎Nipro Sales (Thailand) Co., LTD.
and 34 other consolidated subsidiaries《Sale》

and 1 affliated company■Nichihos Co., Ltd.
and 2 other consolidated subsidiaries《Manufacture and Sale》

and 11 affiliated companies◎Nipro (Thailand) Corporation Ltd.
◎Nipro (Shanghai) Co.,Ltd.

《Sale》◎Nipro ES Pharma Co., Ltd.

Pharmaceutical-Related Business《Manufacture and Sale》◎Nipro Pharma Corporation《Manufacture and Sale》◎Zensei Pharmaceutical Industries Co.,Ltd.

Other Business《Non-life insurance and travel agency》○Nissho Insurance & Travel Co.,Ltd.

Supply of raw materials
Supply of products and merchandises◎Nipro India Corporation Private Limited◎Nipro Medical (Hefei) Co.,Ltd.

N
i
p
r
o

◎PT. Nipro Indonesia JAYA
and 13 other consolidated subsidiaries
and 2 affliated companies

Pharmaceutical-Related Business《Manufacture and Sale》

C
o
r
p
o
r
a
t
i
o
n

◎Nipro Pharma Vietnam Co., Ltd.
■Mekophar Chemical Pharmaceutical Joint-Stock Co.

PharmaPackaging Business《Manufacture and Sale》◎Nipro PharmaPackaging Americas Corp.
◎Nipro PharmaPackaging France S.A.S.
◎Nipro PharmaPackaging Germany GmbH
◎Nipro PharmaPackaging India Private Limited◎Chengdu Pingyuan Nipro Pharmaceuticaland 7 other consolidated subsidiaries《Sale》

Other transactions◎Nipro PharmaPackaging (Shanghai) Co.,Ltd.
◎Consolidated subsidiary○Unconsolidated subsidiary■Affiliated company

Other Business《Supervising》◎Nipro Europe Group Companies N.V.
○Nipro (China) Holdings Co.,Ltd-7-

Management Policies(1) Basic Management Policy
Since our foundation in 1954, the Company’s business philosophy has been to contribute to society through corporate
activities under the concept of “technological innovation”. In keeping with this philosophy, it has constantly sought toachieve growth through pursuit of distinctive products and technology for better quality of life (QOL) among patients and in
response to issues and needs at medical care sites.
In addition, as a management mechanism that bears in mind that the balance between “stability” and “growth” is themost important for a company, we established a “performance-based pay system” and vigorously develop our businessbased on the concept of self-responsibility.

(2) Target Management Indicators
We aim to achieve consolidated net sales of 1 trillion yen by fiscal 2030. As a first step, we are aiming for consolidated
net sales of 500,000 million yen and ordinary profitof 40,000 million yen by fiscal 2020 and will make every effort

towards steady growth in the Medical-Related, Pharmaceutical-Related, and PharmaPackaging businesses.

(3) Medium- to Long-term Management Strategies
The basic policy and management strategy of the Group is to obtain shares in global markets and expand sales byenhancing the productivity of reliable and cost-competitive products through improvements in manufacturing processes,
proactively capturing medical treatment front line needs and seeds and developing products that meet such requests atthe same time. Moreover, we are determined to develop products of value and safety, as viewed from the user’s
perspective, utilizing our original technology and other management resources that span the Medical Devices,
Pharmaceuticals, and PharmaPackaging business segments.
In our Medical-Related Business, we plan to expand our market share, vigorously filling our line-up and opening up newsales channels in areas such as diabetes, vascular and surgical device (SD) products, as well as artificial kidney dialyzers(our mainstay products in this field) and other dialysis products.
In the field of generic drugs, demand is expected to continue to rapidly expand in light of the Ministry of Health, Labourand Welfare's roadmap to promote the use of generic drugs that aims to increase the share of the total pharmaceuticalsales volume occupied by such drugs to at least 80 percent by the end of fiscal 2020. As such, besides our ongoingdevelopment of new generic drugs, we will continue concentrating on the creation of various sales routes to users such asuniversity hospitals, foundation hospitals and dispensing pharmacy groups and enhancing relations with important
wholesalers and distributors, while pursuing greater synergies through coordination with our Medical Equipment Sales
Division.
For overseas sales, with a thorough customer perspective and a customer service together with a technical sale and asystematized sale as our policy, we will raise the Company’s brand power and work towards increasing the shares of our
products, particularly dialysis products such as dialyzers and dialysis machines. Moreover, we will continue to enhance
our network of sales organization and reinforce the management of the organization. We will also continue to promoteestablishment of self-established dialysis centers to provide optimum treatment environments rooted in the local area aswell as medical training facilities by introducing the business of self-established dialysis centers which we started in
Guatemala and Ecuador to other countries and promoting establishment of dialysis training centers all over the world. The
global dialysis market continues to grow. We will continue to actively establish new business bases in developing regions
such as India and China where further market expansion is expected in order to capture demand in expanding markets.
Furthermore, in Europe and the United States, by strengthening ties with major dialysis center groups as well as
expanding sales through our sales network we will work towards further expanding sales and increasing our market share.
In regard to regenerative medicine, in order to expand the sale of the regenerative medicine “Human (autologous) bonemarrow-derived mesenchymal stem cells” (brand name: Stemirac® Injection), we will strengthen our manufacturingsystem as well as promoting tie-ups with medical institutions.

-8-In the Contracted Manufacturing Division of our Pharmaceutical-Related Business, we will build frameworks for
production and quality assurance that meet requirements in developed countries. We will also further expand our
production capacity while working to expand our business as a leading corporate group in the contracted manufacturing ofpharmaceuticals. Moreover, we will make the best of production sites outside of Japan in order to enhance our capacity forstable supply and cost competitiveness, ensuring supply of medical products globally. We will continue to develop andsupply safe and useful products, as viewed from a healthcare professional and patient perspective, through collaborations
between our unique pharmaceutical containers and pharmaceutical preparation and administration devices.
In the PharmaPackaging Business, we will continue to expand our market share using our glass manufacturing
technologies such as VIALEX® glass vials and "D2F(TM)" sterilized vials that make full use of our accumulated
technology and knowhow cultivated over many years of operations. Using such technologies as a foundation, we will
provide a further detailed customer service by fusing and harmonizing the regional strategies of each country andfunctional strategies of each department in every direction possible. Moreover, with the addition of medical device related
products to the PharmaPackaging Businesses from this fiscal year, we will strive to expand by working to sell solutions
that range from primary containers to preparation and administration devices.

(4) Issues and Challenges Facing the GroupIn our Medical-Related Business, the Medical Sales Division will strive to create designs reflecting considerations for
medical safety and security and develop products that alleviate the environmental burden for products related totransfusion, diabetes, dialysis, vascular and SD. It will also seek to develop products that are gentle to healthcare
professionals, patients, and the environment, while actively marketing and expanding sales of products addressing thediversifying needs and potentials in the market, to improve business results. Moreover, while the generic drug industry,
and the pharmaceutical industry as a whole, is facing an extremely difficult business environment due to April of last year's
revised drug prices, the Pharmaceutical Sales Division will endeavor to further enhance the Nipro brand while meeting theneeds of medical care sites, such as home medical care and regional medical cooperation as well as strengthening ties
with medical wholesalers, as a comprehensive medical enterprise. Furthermore, due to demographic changes resulting
from improved living conditions and advances in medical science and treatment driven by economic growth, global
markets are changing from the old disease patterns centered on infectious diseases to urban diseases such as lifestylediseases, the trend particularly pronounced in some emerging countries. As a result, the development of medical
infrastructure and the securing of medical professionals are insufficient in some countries and regions with highpopulations in particular. The Group, while contributing to the improvement of medical infrastructure and the training of
medical professionals in such areas from a global health CSR perspective, will continue to successively and proactively
enhance product production capacity worldwide, in order to fully fulfill our primary responsibility as a manufacturer toprovide products. Demand for dialyzers in particular is forecast to continue to be strong going forward, due to the above
reasons, and we recognize that the enhancing of production capacities in order to satisfy this demand is an urgent
necessity.
In regard to regenerative medicine, construction of the mass production system for the regenerative medicine “Human(autologous) bone marrow-derived mesenchymal stem cells” (brand name: Stemirac® Injection) is now an evolving task.
We aim to launch a new production system at the earliest opportunity, in order to enhance productivity while increasing thereliability of sterile production, and reduce costs while developing a supply system that responds to treatment needs.
In our Pharmaceutical-Related Business, our main goals are to improve production capacity, stabilize supply, secure
reliability in quality, and achieve a significant reduction in manufacturing costs to further increase our competitiveness.
Furthermore, with a view to supplying products to the global market, it is essential that we enhance our development andquality assurance frameworks in both software and hardware in order to fully meet pharmaceutical quality standards in the
United States and Europe and will further respond to the pharmaceutical affairs of each country. In addition, we will workon raw material procurement measures that also consider country risk.
In the PharmaPackaging Business, while amortization expenses for equipment costs invested to further enhance-9-

product competitiveness are a temporary burden, we will continue to aim for automation and labor savings through theintroduction of camera inspection machines at all of our production locations, in order to achieve improved quality
reliability and reduced manufacturing costs. In addition, we will construct stable supply system by unifying our productspecifications and quality standards. For sales, by integrating the Medical System Development Department and the
Medical System Sales Department within the Pharmaceutical Division from this fiscal year, we will strive to perform holistic
sales with the users’ viewpoints in mind as a true pharmaceutical packaging material manufacturer and enhance ourresults.
Moreover, in order to realize continuous investments without delay in each business, we recognize that the enhancingof our financial management system is one major challenge. Going forward, we will aim for enhancement to a soundfinancial management system through various financing methods and capital policies or the efficient management of funds
by utilizing regional head quarters.

4.

Basic Principles Underlying the Concept of Accounting Standards
J-GAAP is adopted in the current period. The Company will keep a close eye on future trends while considering theapplication of International Financial Reporting Standards (IFRS).

- 10 -

5. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2018
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation and impairment loss
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 11 -

As ofMarch 31, 2019

141,940
140,511
89,146
11,431
28,64018,854(1,437)429,087

129,438
148,970
95,103
12,34730,474
27,867(1,248)442,953

207,198(98,987)
108,211258,817(180,543)
78,27332,0793,707(2,746)960
37,53754,423(41,213)
13,210270,273

220,205(105,317)
114,887
273,467(193,732)
79,73436,4805,303(3,069)2,233
36,63859,620(45,112)
14,508284,483

27,3582,366
16,26845,994

19,327
3,669
16,40139,39862,936
10,354
12,644(4,844)81,091
397,359
826,447

61,365
11,3359,107(2,822)
78,986
402,867
845,821

(Millions of yen)
As ofMarch 31, 2018
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued directors' bonuses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Notes payable-facilities
Other
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bond-type bonds with share acquisition rights
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Provision for directors' retirement benefits
Provision for loss on litigation
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 12 -

As ofMarch 31, 2019

62,105
117,666
10,0001,215
1,198
16,461
328
4,993
4,364
131
11,304
21,415
251,184

69,646139,297
－
3,600
1,693
17,499
388
5,350
4,506
125
7,931
24,237274,277

5,000
25,000350,517
2,544
473
4,530
647
202
2,861
391,776
642,961

11,40025,000349,112
5,034
204
5,101
703
147
3,008
399,712
673,990

84,397
83,570(6,004)
161,963

84,39790,719(10,826)
164,291(712)(69)
11,40436
10,658
10,863
183,485
826,447(5,173)
(54)
2,625
(199)
(2,802)
10,341
171,830
845,821

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividends income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Expenses for operation preparation
Commission for syndicate loan
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
State subsidy
Gain on sales of investment securities
Gain on bargain purchase
Other
Total extraordinary income
Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on reduction of non-current assets
Provision of allowance for doubtful accounts
Compensation expenses
Loss on liquidation of business
Tariff for prior periods
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 13 -

Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)395,397268,272
127,125
100,036
27,088426,399295,767
130,631
106,804
23,827

577
1,643
113
1,646
3,981

816
1,743
78
2,731
5,370

3,543
471
817
2,561
991
8,384
22,684

3,347
312
409
1,121
1,576
6,766
22,431

63
1,613
736
－
2
2,416

229
1,448
147
317
0
2,142

370
411
2,216
1,500
92
1,074
1,056
－
1,352
8,075
17,026
7,708(2,980)
4,727
12,298468
11,829

91
180
915
865
－
19
－
480
787
3,340
21,233
8,605
751
9,357
11,876(260)
12,136

Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income
attributable to owners of parent
Comprehensive income
attributable to non-controlling interests- 14 -

Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)12,298

11,876(2,301)
72
2,882
628

(4,460)15(8,891)
(250)

(87)
1,194
13,492(127)(13,715)(1,838)12,983(1,323)

508

(514)

(3) Consolidated Statements of Shareholders' Equity(Millions of yen)

Shareholder's equity
Capital stock
Balance at beginning of year
Changes of items during period
Total changes of items during period
Balance at end of year
Retained earnings
Balance at beginning of year
Changes of items during period
Dividend of surplus
Profit attributable to owners of parent
Disposal of treasury shares
Other
Total changes of items during period
Balance at end of year
Treasury stock
Balance at beginning of year
Changes of items during period
Purchase of treasury shares
Disposal of treasury shares
Total changes of items during period
Balance at end of year
Total Shareholders' equity
Balance at beginning of year
Changes of items during period
Dividend of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Other
Total changes of items during period
Balance at end of year

- 15 -

Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)84,39784,397－84,397－84,39778,422

83,570(6,498)
11,829
(0)
(184)
5,147
83,570(4,957)
12,136－(29)
7,149
90,719(6,243)(6,004)

(1)
240
238
(6,004)(5,000)178(4,821)(10,826)

156,577

161,963(6,498)
11,829
(1)
240
(184)
5,385
161,963(4,957)
12,136(5,000)
178
(29)
2,327
164,291(Millions of yen)

Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Deferred gains or losses on hedges
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Foreign currency translation adjustment
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Remeasurements of defined benefit plans
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Total accumulated other comprehensive income
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Non-controlling interests
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Total net assets
Balance at beginning of year
Changes of items during period
Dividend of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Other
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year

- 16 -

Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)

1,589

(712)

(2,301)(2,301)(712)(4,461)(4,461)(5,173)

(141)

(69)

72
72
(69)

15
15
(54)

8,640

11,4042,764
2,764
11,404(8,778)(8,778)
2,625

(582)

36

619
619
36

(236)
(236)
(199)

9,504

10,658

1,153
1,153
10,658(13,460)(13,460)(2,802)

10,325

10,863538
538
10,863(522)(522)
10,341

176,408

183,485(6,498)
11,829
(1)
240
(184)
1,691
7,077
183,485(4,957)
12,136(5,000)178(29)(13,983)(11,655)
171,830

(4) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Share of (profit) loss of entities accounted for using equity method
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
State subsidy
Loss on reduction of non-current assets
Gain on bargain purchase
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other loss (gain)
SubtotalInterest and dividends income received
Interest expenses paid
Other proceeds
Other payments
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of shares of associates
Proceeds from sales of shares of associates
Purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation
Payments for transfer of business
Purchase of non-current assets
Proceeds from sales of non-current assets
Payments for retirement of non-current assets
Proceeds from subsidy income for capital investment
Net decrease (increase) in short-term loans receivable
Payments of loans receivableCollection of loans receivable
Other payments
Other proceeds
Net cash provided by (used in) investment activities- 17 -

Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)17,02632,565
2,216
3,431
(113)
443
288
(2,221)
3,543
559
(791)
(1,613)1,500－(7,331)(4,902)(3,821)
1,755
6,454
449
49,441
2,238(3,299)499(502)(7,329)41,046

21,23335,252
915
3,372
(78)
(699)
352
(2,559)
3,347
1,385
(147)
(1,036)865(317)(12,278)(11,448)
11,814(5,393)5,544(97)50,027
2,421(3,211)631(331)(8,175)41,362(4,715)
9,673
(549)
4,480
(40)
(881)
384

(6,661)
3,231
(875)
110
(61)
(1,352)－(11,888)－－－(62,382)
655
(274)
1,592
470
(755)
93
(1)
－
(64,140)

2,294(5,126)(55,980)
1,008
(6)
2,471
(4,187)
(281)
712
(7)
0
(64,712)(Millions of yen)
Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Net increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds form issuance of bonds
Redemption of bonds
Proceeds from sales of treasury shares
Purchase of treasury shares
Purchase of treasury shares of subsidiaries
Proceeds from sales and leasebacks
Repayments of finance lease obligations
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Payments for investments in capital of subsidiaries
that do not result in change in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change 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 from newly consolidated subsidiary
Cash and cash equivalents at end of period- 18 -

Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)

8,825－
135,110(74,903)993(15,160)
240
(1)
(21)
－
(1,180)(6,484)(20)

3,264(10,000)
88,813(68,368)
9,933(1,215)178(5,000)－1,474(1,338)(4,947)
(36)

(56)

(113)

－
47,341(695)
23,552
112,046－
135,599(0)12,646(4,659)(15,363)
135,59974
120,310

(5) Notes Regarding Consolidated Financial Statements(Notes Related to Going Concern)
N/A(Basis of Preparation for the Consolidated Financial Statements)
1) Scope of consolidation[1] Consolidated subsidiaries: 82
Name of representative consolidated subsidiaries,

・ Nipro Medical Industries Co., Ltd.

・ Nipro (Thailand) Corporation Ltd.

・ Nipro Medical Europe N.V.

・ Nipro Medical Corporation

・ Nipro Pharma Corporation

・ Nipro ES Pharma Co., Ltd.

・ Nipro Medical (Hefei) Co., Ltd.

・ Goodman Co., Ltd.

・ Nipro Trading (Shanghai) Co., Ltd.

・ Zensei Pharmaceutical Industries Co., Ltd.

Four companies including Nipro Excellent Renal Care Co., Ltd. which were newly established were included in thescope of consolidation and NextOrthoSurgical Inc. was included in the scope of consolidation due to the increasedmateriality since the consolidated fiscal year under review.
Nipro South Africa PTY LTD. was excluded from the scope of consolidation due to liquidation since the consolidated
fiscal year under review.
Eleven companies including Nichihos Co., Ltd. were excluded from the scope of consolidation and included in thescope of affiliated company accounted for by the equity method since the consolidated fiscal year under review asthey became affiliated companies due to the partial sales of the shares of these companies.

[2] Name of major unconsolidated subsidiary･

Nissho Insurance & Travel Co., Ltd.

The unconsolidated subsidiaries are small-sized companies, whose combined total assets, net sales, net income
and earned surplus in the aggregate (averaged for recent 5 years) are not material to the consolidated financial
statements.

2) Application of equity method[1] Number of affiliate accounted for by the equity method: 12･

Mekophar Chemical Pharmaceutical Joint-Stock Company

Eleven companies including Nichihos Co., Ltd. were excluded from the scope of consolidation and included in thescope of affiliated company accounted for by the equity method since the consolidated fiscal year under review asthey became affiliated companies due to the partial sales of the shares of these companies.

[2] Name of major unconsolidated subsidiary not accounted for by the equity method:･Nissho Insurance & Travel Co., Ltd.

Name of major affiliate not accounted for by the equity method:･

Nipro Dongduk Medical Corporation

The equity method is not applied to some of the unconsolidated subsidiaries and the affiliate companies, since they
are not material to the consolidated net income (amounts worth to equity) and earned surplus(amounts worth toequity) etc., either individually or in the aggregate.

3) Accounting period of consolidated subsidiaries- 19 -

Among the main consolidated subsidiaries, accounts closing date of the foreign subsidiary is December 31.
Consolidated financial statements as of that date are used in preparing for consolidated financial statements, andnecessary adjustments are made to reflect significant transactions that occurred between December 31 and March
31.

4) Accounting principles and practices[1] Valuation standards and methods for significant assets
Securities
Available-for-sale securities
Securities with market quotations ---------- Valued at the market price quoted on the balance sheet date.
(Differences in valuation are presented as a component ofshareholders’ equity. Costs are determined by the weighted averagemethod.)Securities without market quotations ----- Valued at cost by the weighted average method

Inventories
Valued at cost by the weighted average method (Writing down method below cost to the net selling value fordecreased profitability)

Derivatives transaction
Valued at the market price[2] Method of depreciation and amortization for significant depreciable assets
Property, plant and equipment (Excluding lease assets)------ Mainly Declining-balance method
However, buildings acquired on or after April 1, 1998 (excluding attachedstructures), and facilities attached to buildings and structures acquired on orafter April 1, 2016 are depreciated by straight-line method.
The foreign subsidiaries use straight-line method.
Lease assets
Lease assets under the finance lease transaction that does not transfer ownership------ Recorded by straight-line method its useful lives are equals to the lease term
and the residual values are equal to zero.

[3] Standards for recognition of significant allowances
Allowance for double accounts ----- In order to cover the probable losses on collection, an allowance for doubtful
accounts is provided for the estimated amount of uncollectible receivables. For
general receivables, the amount of provision is based on historical write-off
rates, and for the doubtful receivables, based on the specific collectability.
Provision for bonuses ----------------- In order to cover the payment of bonuses to employees, an allowance isprovided for the estimated amount of bonuses to be paid, prorated for the
consolidated accounting period.
Provision for directors’ bonuses ---- In order to cover the payment of bonuses to directors and corporate auditors, anallowance is provided for the estimated amount of bonuses to be paid, prorated
for the consolidated accounting period.
Provision for directors’ retirement benefits------ An allowance is provided for severance indemnity for directors and corporate- 20 -

directors based on the amounts to be paid at the end of the consolidated
accounting period.
Provision for loss on litigation-------- In order to cover the probable losses on lawsuit, an allowance for loss isprovided for the estimated amount acceptable as needed.

[4] Accounting Treatment of Retirement Benefits
Method of attributing expected benefit to periods
In calculating retirement benefit obligation, the Company attributed expected benefit to the periods on a
payment calculation basis.

Accounting Method of Actuarial gains and losses and prior service costs
Prior service costs are amortized on a straight-line basis over the certain period (generally 5 years) which is nolonger than the expected average remaining working lives of the employees when they occur.
Actuarial gains and losses are amortized on a straight-line basis over the certain period (generally 5years)
which is no longer than the expected average remaining working lives of the employees from the following theyear which they arise.
For certain consolidated subsidiaries, actuarial gains and losses are processed collectively in the accrued year.

[5] Amortization of goodwill
Goodwill is amortized using the straight-line method over the estimated benefit period of the asset (from 5 to 20
years).

[6] Range of cash and cash equivalent carried on the consolidated cash flow statement.
Cash and cash equivalent carried on the cash flow statement consist of cash on hand, cash in banks that are able
to withdraw as needed, and short-term investment that will be matured within three months after acquisition, easy to
be converted into cash without much risks from fluctuation of prices.

[7] Significant method of hedge accounting
Method of hedge accounting
The deferral hedge accounting method is applied in principle. Designation accounting is used for foreignexchange swap that meet the requirements for designation accounting, and exceptional accounting is used forinterest rate swap that meet the requirements for exceptional accounting.

Hedge instrument and hedge items[Hedge instruments][Hedge items]

Interest rate swaps

Borrowings

Hedge policy
The Company uses foreign exchange swaps and interest rate swaps to mitigate the foreign currency risk andthe interest rate risk involved in procuring funds and hedge items are identified on an individual contract basis.

Method for evaluating the validity of hedges
For items covered by designation or exceptional accounting, the validity of the hedge is not evaluated.

[8] Other significant basis on preparation for consolidated financial statements
Consumption taxes
Consumption taxes are excluded from revenues and expenses accounts and consumption taxes unqualified- 21 -

for deduction for tax purposes for assets, etc. are reported as period expenses in the consolidated accounting
period.

(Additional Information)
Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.
The company has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018) from the beginning of the consolidated fiscal year under review. Due tothis application, deferred tax assets are presented under investments and other assets and deferred tax
liabilities are presented under non-current liabilities.

(Notes Regarding Consolidated Balance Sheets)(Previous period)
1) Pledged assets(Current Period)

13,005mil. yen

12,411mil. yen

4-mil. yenmil. yen

4421

mil. yenmil. yen

4,142

mil. yen

8,682

mil. yen

7

mil. yen

8

mil. yen

2) Discounted notes receivable
2) Notes receivable endorsed
3) Accounts related to unconsolidated subsidiaries
and affiliate companies
Investment securities (stock)
Other of investments and other assets(Investments in capital)

4) Accounting treatment of trade notes maturing on the last day of the fiscal year
Trade notes maturing on the last day of the fiscal year are accounted on the clearance day. Accordingly, since
the last day of the current consolidated fiscal year was a bank holiday, such trade notes were included in thefollowing accounts.
(Previous period)(Current Period)

Notes receivable - trade

2,042

mil. yen

1,964

mil. yen

Notes payable - trade896

mil. yen

1,036

mil. yen(Notes Regarding Consolidated Statement of Income)(Previous period)
Research and development expenditure included inselling general and administrative expenses andmanufacturing cost.

16,113(Current Period)

mil. yen

16,526mil. yen(Notes Regarding Consolidated Statements of Shareholders’ equity)
Previous period (From April 1, 2017 to March 31, 2018)
1. Sort and total numbers of shared issues
Sort of shares
Common stock

Number of shares
as of April 1, 2017
171,459,479

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2018
171,459,479

2. Sort and numbers of treasury stock
Sort of shares

Number of shares
Increased
Decreased
Number of shares
as of April 1, 2017
numbers
numbers
As of March 31, 2018
Common stock
5,300,071
1,025
263,972
5,037,124(Note) 1. Number of the stocks increased during the period due to the purchase of shares of odd-lot shares.
2. Number of the stocks decreased during the period due to the sales of 72 shares of odd-lot shares andsales of 263,900 shares by Trust Account E to the Association.
3. Number of the stocks as of the beginning of the period and as of the end of the period included 460,000
shares and 196,100 shares respectively owned by Trust Account E.

- 22 -

3. Dividends(1) Amount of dividends paid
Decision
June 28, 2017at Ordinary General Meetingof Shareholders
November 9, 2017at Board of Directors

Sort of shares

Total amount ofdividends paid

Common stock

Millions of yen
3,582

Dividends
per shares
Yen
21.50

Basis date

Effective date

March 31,2017

June 29, 2017

Millions of yen
Yen
September 30,2017 December 8, 2017
2,915
17.50
(Note) 1. Total amount of dividends paid decided at the ordinary general meeting of shareholders on June 28, 2017
includes 9 million yen of the dividends on shares owned by Trust Account E.
2. Total amount of dividends paid decided at the board of directors on November 9, 2017 includes 5 million
yen of the dividends on shares owned by Trust Account E.
Common stock(2) Of the dividends whose record date belongs to the current consolidated fiscal year, those dividends of which theeffective date belongs to the next fiscal year
Scheduled Decision

Sort ofsharesProceeds ofdividends

Total amount ofdividends paid

Dividends
per shares

Basis date

Effective
date

June 27, 2018at Ordinary General
Meeting of
Shareholders

Commonstock

EarnedsurplusMillions of yen
1,832

Yen
11.00

March 31, 2018

June 28, 2018

(Note) Total amount of dividends paid includes 2 million yen of the dividends on shares owned by Trust Account E..
Current period (From April 1, 2018 to March 31, 2019)
1. Sort and total numbers of shared issues
Sort of shares
Common stock

Number of shares
as of April 1, 2018
171,459,479

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2019
171,459,479

2. Sort and numbers of treasury stock
Sort of shares

Number of shares
Increased
Decreased
Number of shares
as of April 1, 2018
numbers
numbers
As of March 31, 2019
Common stock
5,037,124
3,520,832
196,100
8,361,856(Note) 1. Number of the stocks increased during the period due to the purchase of 3,520,600 shares pursuant to a
resolution of the Board of Directors and purchase of 232 shares of odd-lot shares.
2. Number of the stocks decreased during the period due to the sales of shares by Trust Account E to the
Association.
3. Number of the stocks as of the beginning of the period included 196,100 shares owned by Trust Account
E. As of February 15, 2019, the services was terminated at maturity of trust period and all shares owned by
Trust Account E was disposed on February 5, 2019.
3. Dividends(1) Amount of dividends paid
Decision
June 27, 2018at Ordinary General Meetingof Shareholders
November 8, 2018
at Board of Directors

Sort of shares

Total amount ofdividends paid

Common stock

Millions of yen
1,832

Dividends
per shares
Yen
11.00

Basis date

Effective date

March 31,2018

June 28, 2018

Millions of yen
Yen
September 30,2018 December 7, 2018
3,124
19.00
(Note) 1. Total amount of dividends paid decided at the ordinary general meeting of shareholders on June 27, 2018
includes 2 million yen of the dividends on shares owned by Trust Account E.
2. Total amount of dividends paid decided at the board of directors on November 8, 2018 includes 0 million
yen of the dividends on shares owned by Trust Account E.
Common stock(2) Of the dividends whose record date belongs to the current consolidated fiscal year, those dividends of which theeffective date belongs to the next fiscal year
Scheduled Decision
June 26, 2019at Ordinary General
Meeting of Shareholders

Sort ofsharesCommonstock

Proceeds ofdividends
Earnedsurplus

Total amount ofdividends paid

Millions of yen
1,467- 23 -

Dividends
per shares
Yen
9.00

Basis date

Effective
date

March 31, 2019

June 27, 2019

(Segment Information)[Segment Information]
1. Outline of reportable operating segments
Applied ASBJ Statement No.17 “The Accounting Standard for Disclosures of Segments of an Enterprise and RelatedInformation”, the reportable operating segments are components of an entity for which separate financial information isavailable and evaluated regularly by the board of directors in determining the allocation of management resources and inassessing performance. We currently operate our business on a stand-alone basis with the divisional organization andevaluate the performance of sales and manufacture of each division regardless of their products. Accordingly, we divide
our operations into 3 reportable operating segments on the basis of its main products: Medical-Related,
Pharmaceuticals-Related and PharmaPackaging.

*Medical-Related
The Domestic Division sells injection and infusion products, artificial organ products, highly functional products, dialysis
products, diabetic products and pharmaceuticals such as generic and kit products. In the Global Business Division, head
office plays the central role, placing overseas sales and manufacturing bases for medical equipment and sales injection
and infusion products, artificial organ products and diabetic products.

*Pharmaceutical-Related
The Pharmaceutical Division sells pharmaceutical-related products associated with containers for combination products(injectable kit products) consigned by other pharmaceutical companies. Domestic subsidiaries sell and manufacture
injectable drugs, oral drugs and combination products.

*PharmaPackaging
The PharmaPackaging Division sells glass for vials and ampoules for medical use, glass for thermos bottles, glass forlighting and containers for combination products (injectable kit products) domestically. Overseas subsidiaries
manufacture and sell tube glass and glass mainly for syringes, vials and ampoules for medical use.

2. Method of calculating sales and profit by reportable operating segment
The accounting process of the segments follows the accounting principles and practices listed in Basis of Preparation
for the Consolidated Financial Statements. Profit of the segment is based on operating income. Internal revenue andtransfer to revenue between segments are based on the market realized price.

- 24 -

3. Information on amount of sales, profit or loss, assets and other items by reportable segment
Year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)(Millions of yen)
Consolidated
StatementsofIncome(Note.3)

Segment
Other(Note.1)

Adjustment(Note.2)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

300,11760,08035,170395,36829

395,397－395,397

1,636

14,690167

16,494

1,180

17,675(17,675)－

301,753

74,77035,338411,8631,210

413,073(17,675)

395,397

36,522

11,428367

48,31875

48,394(21,306)

27,088417,718

162,670

73,924654,313

4,317

658,631

167,815

826,447

14,836

11,042

3,147

29,02648

29,074

3,491

32,565

2,738

4

689

3,431

-

3,431

-

3,431

20,412

17,393

9,099

46,906

1,769

48,675

13,314

61,990

Total

Total

Net sales(1)Sales to third
parties(2)Inter-segment
sales andtransfers

Total
Segment profit(loss)
Segment
assetsOther items(1)Depreciation
and amortization(2)Amortization of
goodwill(3)Increase intangible andintangible fixed
assets(Note)

1. “Other” is the business segment which is not included in the reporting segment and consist of real estate
income and sales by headquarter.
2. Adjustment is as follows.
(1) Adjustment for the segment profit (loss) of (21,306) million yen includes deduction of intercompany profits oninventories of (704) million yen and corporate cost of (20,601) million yen. Corporate cost consists primarilyof sales, general and administrative expenses and research and development cost which do not belong to
the reporting segment.
(2) Adjustment for the segment assets of 167,815 million yen includes elimination of inter-segment transaction of(12,347) million yen and corporate assets of 180,162 million yen. Corporate assets consisted primarily ofcash and deposit, investment securities, assets for development and assets for management division of head
office which do not belong to the reporting segment.
(3) Adjustment for depreciation and amortization of 3,491 million yen is for corporate assets. Depreciation andamortization and increase in tangible and intangible fixed assets include long-term prepaid expenses.
(4) Adjustment for increase in tangible and intangible fixed assets is increase in corporate assts.
3. Segment profit (loss) is adjusted to the operating income on the consolidated statements of income.

- 25 -

Year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(Millions of yen)
Consolidated
StatementsofIncome(Note.3)

Segment
Other(Note.1)

Adjustment(Note.2)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

327,359

63,48235,526426,36831

426,399－

426,399

6,724

18,311

5,099

30,135

1,463

31,598(31,598)－

334,083

81,79340,626456,503

1,494

457,997(31,598)

426,399

36,722

10,662778

48,162

146

48,309(24,482)

23,827428,943

172,691

74,521

676,155

3,815

679,970

165,850

845,821

15,931

11,646

3,712

31,289165

31,455

3,796

35,252

3,036

0

335

3,372

-

3,372

-

3,372

25,20821,1386,488

52,835757

53,592

10,80264,394

Total

Total

Net sales(1)Sales to third
parties(2)Inter-segment
sales andtransfers

Total
Segment profit(loss)
Segment
assetsOther items(1)Depreciation
and amortization(2)Amortization of
goodwill(3)Increase intangible andintangible fixed
assets(Notes)1. “Other” is the business segment which is not included in the reporting segment and consist of real estate
income and sales by headquarter.
2. Adjustment is as follows.
(1) Adjustment for the segment profit (loss) of (24,482) million yen includes deduction of intercompany profits oninventories of (2,380) million yen and corporate cost of (22,102) million yen. Corporate cost consists primarilyof sales, general and administrative expenses and research and development cost which do not belong to
the reporting segment.
(2) Adjustment for the segment assets of 165,850 million yen includes elimination of inter-segment transaction of(15,637) million yen and corporate assets of 181,488 million yen. Corporate assets consisted primarily ofcash and deposit, investment securities, assets for development and assets for management division of head
office which do not belong to the reporting segment.
(3) Adjustment for depreciation and amortization of 3,796 million yen is for corporate assets. Depreciation andamortization and increase in tangible and intangible fixed assets include long-term prepaid expenses.
(4) Adjustment for increase in tangible and intangible fixed assets is increase in corporate assts.
3. Segment profit (loss) is adjusted to the operating income on the consolidated statements of income.

4. Notes Concerning Changes to Reporting Segments
Since the consolidated fiscal year under review we have performed a comprehensive development of thePharmaPackaging business and, in order to enhance the synergy effects with pharmaceutical sales, we carried out
organizational changes. As a result of this change, some business divisions previously categorized as
Pharmaceutical-Related have been included in PharmaPackaging.
The segment information for the Year ended March 31, 2018 is prepared based on the reportable segment after thereclassification.

[Related Information]
Year ended March 31, 2018 (From April 1, 2017 to March 31, 2018)
1. Information for each product and service
Disclosure is omitted as the same information is disclosed in segment information.
2. Information for each area
(1) Net sales(Millions of yen)Japan
241,750

America

Europe56,704

46,389- 26 -

Asia

Total
50,553395,397

(2) Property, plant and equipment(Millions of yen)Japan

America

177,250

Europe10,407

Asia

21,909Total
60,706

270,273

3. Information about impairment loss on fixed assets by reportable segments(Millions of yen)
Reportbale segment
Pharmaceutical-Related

Medical-Related

139

Total

PharmaPackaging

-

1,968

Other

2,107

Total
109

2,216

4. Information about unamortized balance of goodwill by reportable segment(Millions of yen)
Reportbale segment
Medical-Related

Balance of theficical year-end

Pharmaceutical-Related

26,153

PharmaPackaging

0

Total

1,205

Other

27,358

Total-

27,358

5. Information about gain on negative goodwill by reportable segment
N/A
Year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
1. Information for each product and service
Disclosure is omitted as the same information is disclosed in segment information
2. Information for each area
(1) Net sales(Millions of yen)Japan

America

260,967

Europe59,836

Asia

51,042

Total
54,552426,399(2) Property, plant and equipment(Millions of yen)Japan

America

189,571

Europe10,998Asia

21,801

Total
62,110284,483

3. Information about impairment loss on fixed assets by reportable segments(Millions of yen)
Reportbale segment
Medical-Related

Pharmaceutical-Related2

PharmaPackaging

-

Total

913

Other
915

Total
-

915

4. Information about unamortized balance of goodwill by reportable segment(Millions of yen)
Reportbale segment
Medical-Related

Balance of theficical year-end

18,481

Pharmaceutical-Related

PharmaPackaging-845- 27 -

Total
19,327

Other

Total
-

19,327

5. Information about gain on negative goodwill by reportable segment
In the consolidated fiscal year under review, in Pharmaceutical-Related segment, a gain on negative goodwill of 317
million yen resulting from the transfer of business from Mylan Seiyaku Ltd. was recorded.
(Per Share Information)
Previous period(From April 1, 2017
to March 31, 2018)
1,037.25 yen

Current period(From April 1, 2018
to March 31, 2019)
990.14 yen

Earnings per share

71.15 yen

73.68 yen

Diluted Earnings per share

64.51 yen

66.75 yen

Net assets per share

Base of the calculation is as follow;

1.

Net assets per share
Previous period(As of March 31, 2018)

Current period(As of March 31, 2019)

183,485

171,830

10,863

10,341

Net assets related to the common stocks(million yen)

172,621

161,488

Common stocks issued (Thousands shares)

171,459

171,459

Treasury stocks of common stock (Thousands shares)

5,037

8,361

Number of common stocks utilized for computation of net
assets per share (thousand shares)

166,422

163,097

Total net assets in B/S (million yen)Amount to be deducted from total net assets in B/S(Million yen)
Non-controlling interests

2.

Earnings per share and diluted earnings per share
Previous period(From April 1, 2017
To March 31, 2018)

Current period(From April 1, 2018
To March 31, 2019)

Earnings per share
Profit attributable to owners of parent (Million yen)Amount not attributed to the common stock (Million yen)
Profit attributable to owners of parent available forcommon stock (Million yen)
Average shares of the common stock during the period(Thousands shares)

11,82912,136--

11,82912,136

166,276

164,723--

17,09917,099--Diluted earnings per share
Adjustment for profit attributable to owners of parent(Million yen)
Number of common stock increased (thousand shares)
Convertible bond-type bonds withshare acquisition rights
Overview of the potential shares not included in thecomputation of diluted earning per share because of nothaving a dilutive effect(Material Subsequent Event)N/A- 28 -

6. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2018
AssetsCurrent Assets
Cash and deposits
Notes receivable-trade
Electronically recorded monetary claims - operating
Accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Short-term loans receivable from subsidiaries and associates
Accounts receivable-otherConsumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation and impairment loss
Buildings, net
Structures
Accumulated depreciation and impairment loss
Structures, net
Machinery, equipment
Accumulated depreciation and impairment loss
Machinery equipment, net
VehiclesAccumulated depreciation and impairment loss
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment- 29 -

As ofMarch 31, 201976,62012,436
8,627
99,842
20
37,245
4,316
5,241
4,124
365
907
2,873
1,489
608
(26)
254,693

72,603
9,253
11,226115,293－
49,123
6,749
5,675
2,420
428
8,388
1,488
2,412
503
(104)
285,462

52,042(27,043)
24,9992,661(1,847)813
66,247(56,247)
9,999
107
(100)
7
20,937(18,326)
2,611
15,995
1,100
(648)
451
3,945
58,82353,483(28,491)
24,992
2,704(1,932)771
68,660(58,893)
9,766
112
(106)
6
22,387(19,493)
2,893
17,699
1,222
(791)
431
4,655
61,217

(Millions of yen)
As ofMarch 31, 2018
Intangible assets
Goodwill
Patent right
Trademark right
SoftwareLeased assets
Telephone subscription right
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Investments in capital of subsidiaries and associates
Long-term loans receivable
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy,
claims provable in rehabilitation and other
Long-term prepaid expenses
Prepaid pension cost
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Electronically recorded obligations - operating
Accounts payable-trade
Current portion of long-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-other
Directors' bonuses payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Unearned revenue
Provision for bonuses
Provision for sales returns
Notes payable-facilities
Other
Total current liabilities- 30 -

As ofMarch 31, 2019

938
20
2
831
2,366
23
816
5,001

121
19
2
873
3,669
23
1,515
6,225

56,474
183,778
1
52,726
7
3,896

50,474
186,8501
51,884
－
3,977

3,237
2,267
164
3,500
758
(2,651)
304,160
367,985622,679

2,986
2,016
106
5,140
801
(2,403)301,837
369,281654,743

15,5333,610
45,36339,623
10,000400
871
10,247
328
1,041
2,650
70
228
6
1,580
37
3,975
1,055
136,622

15,965
7,666
52,94656,781
－
3,000
1,224
9,687
388
1,057
2,102
1,591
376
－
1,914
30
2,663
1,306
158,703(Millions of yen)
As ofMarch 31, 2018
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds with share acquisition rights
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on litigation
Long-term guarantee deposited
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for dividends
Reserve for advanced depreciation of non-current assets
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 31 -

As ofMarch 31, 2019

3,000
25,000278,884
2,169
1,691
441
－
1,936
313,123
449,745

10,00025,000282,417
3,200
1,791
490
44
2,081
325,025
483,729

84,39784,397

635
0
635

635
0
635

4,272

4,768

16
105
82,735
8,837
95,966(6,004)
174,995

16
105
82,735
15,615103,240(10,826)
177,446(2,061)(2,061)
172,933
622,679(6,431)(6,431)
171,014654,743

(2) Non-consolidated Statements of Income(Millions of yen)

Net sales
Net sales of merchandise and finished goods
Rent income of real estate
Total net sales
Cost of sales
Beginning merchandise and finished goods
Cost of products manufactured
Cost of purchased merchandise and finished goods
Cost of real estate rent
Total
Ending merchandise and finished goods
Total cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividends income
Reversal of allowance for doubtful accounts
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Commission for syndicate loan
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on sales of investment in capital ofsubsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on reduction of non-current assets
Loss on valuation of shares of subsidiaries and associates
Compensation expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit- 32 -

Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)

270,717126
270,844

310,439163
310,60336,78048,326
156,987
123
242,218
37,245204,973
65,87150,444
15,42637,24550,575202,292123
290,235
49,123
241,11269,49056,782
12,708

269
4,742
30
－
654
5,696

186
4,968
30
1,019
1,195
7,400

1,731
253
771
1,627
197
4,580
16,542

1,866
47
405
－
389
2,709
17,399

4
1,023

80
1,036

505
1,532

－
1,117

91
119
910
－
1,074
424
2,621
15,453
3,404
(223)
3,181
12,272

26
109
461
1,261
19
474
2,353
16,163
3,645
286
3,932
12,231

(3) Non-consolidated Statements of Shareholders' Equity(Millions of yen)

Shareholder's equity
Capital stock
Balance at beginning of year
Changes of items during period
Total changes of items during period
Balance at end of year
Capital surplus
Legal capital surplus
Balance at beginning of year
Changes of items during period
Total changes of items during period
Balance at end of year
Other capital surplus
Balance at beginning of year
Changes of items during period
Disposal of treasury shares
Total changes of items during period
Balance at end of year
Total capital surplus
Balance at beginning of year
Changes of items during period
Disposal of treasury shares
Total changes of items during period
Balance at end of year
Retained earnings
Legal retained earnings
Balance at beginning of year
Changes of items during period
Provision of legal retained earnings
Total changes of items during period
Balance at end of year
Other retained earnings
Reserve for dividends
Balance at beginning of year
Changes of items during period
Total changes of items during period
Balance at end of year
Reserve for advanced depreciation of non-current assets
Balance at beginning of year
Changes of items during period
Total changes of items during period
Balance at end of year
General reserve
Balance at beginning of year
Changes of items during period
Provision of general reserve
Total changes of items during period
Balance at end of year

- 33 -

Year ended March 31, 2018
(From April 1, 2017
to March 31, 2018)Year ended March 31, 2019
(From April 1, 2018
to March 31, 2019)84,39784,397－84,397－84,397

635

635

－
635

－
635

－

0

0
0
0

－
－
0

635

635

0
0
635

－
－
635

3,622

4,272

649
649
4,272

495
495
4,768

16

16

－
16

－
16

105

105

－
105

－
105

75,83582,7356,900
6,900
82,735－82,73582,735

Year ended March 31,
2018(From April 1, 2017
Retained earnings brought forward
Balance at beginning of year
Changes of items during period
Dividends of surplus
ProfitProvision of legal retained earnings
Provision of general reserve
Total changes of items during period
Balance at end of year
Total retained earnings
Balance at beginning of year
Changes of items during period
Dividends of surplus
ProfitTotal changes of items during period
Balance at end of year
Treasury shares
Balance at beginning of year
Changes of items during period
Purchase of treasury shares
Disposal of treasury shares
Total changes of items during period
Balance at end of year
Total shareholders' equity
Balance at beginning of year
Changes of items during period
Dividends of surplus
ProfitPurchase of treasury shares
Disposal of treasury shares
Total changes of items during period
Balance at end of year
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Total valuation and translation adjustments
Balance at beginning of year
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year
Total net assets
Balance at beginning of year
Changes of items during period
Dividends of surplus
ProfitPurchase of treasury shares
Disposal of treasury shares
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of year

- 34 -(Millions of yen)
Year ended March 31,
2019(From April 1, 2018

10,613

8,837(6,498)12,272(649)(6,900)(1,775)
8,837(4,957)
12,231
(495)
－
6,777
15,61590,192

95,966(6,498)12,272
5,773
95,966(4,957)
12,231
7,273
103,240(6,243)(6,004)

(1)
240
238
(6,004)(5,000)178(4,821)(10,826)

168,982

174,995(6,498)12,272
(1)
240
6,012
174,995(4,957)
12,231(5,000)178
2,451
177,446138(2,061)(2,200)(2,200)(2,061)(4,370)(4,370)(6,431)138(2,061)(2,200)(2,200)(2,061)(4,370)(4,370)(6,431)

169,121

172,933(6,498)12,272(1)
240(2,200)3,812
172,933(4,957)
12,231(5,000)178(4,370)(1,918)171,014