Summary Report of Consolidated Financial Results
For the Six Months Period ended September 30, 2018
November 8, 2018stCompany 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, Managing Director of Corporate Planning Headquarters
TEL: (06)6372-2331
Filing date of quarterly reporting: November 14, 2018
Payment date of cash dividends: December 7, 2018
Supplemental material on quarterly reporting: Yes
Presentation on quarterly results: Yes (for institutional investors and analysts)(Note: Amounts less than one million yen are rounded down)
1. Consolidated Results for the Six Months ended September 30, 2018 (From April 1, 2018 to September 30, 2018)(1) Consolidated Results of Operations(%: Changes from the corresponding period of 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%
6 months ended
September 30, 2018
6 months ended
September 30, 2017
Note: Comprehensive income

208,325

10.9

12,022

4.6

13,699187,903

5.8

11,495(27.9)

11,776

Yen

Diluted Earnings
per share
Yen

45.86

41.58

49.83

45.18

(2) Consolidated Financial Position
Total Assets
Millions of yen
As of September 30, 2018843,493
As of March 31, 2018826,447

Net Assets
Millions of yen
182,415
183,485

6 months ended
September 30, 2018
6 months ended
September 30, 20172.

September 30, 2018: 171,655 million yen

(8.1)

76.8)

8,282

(183.3Equity Ratio
%
20.4
20.9

March 31, 2018: 172,621 million yen

Dividends
First-quarter
Yen

Annual Dividends per Year
Year-end
Second-quarter
Third-quarter
Yen
Yen
Yen
17.50
11.00
19.00

Year ended March, 2018Year ending March, 2019Year ending March, 2019
(Forecast)
Note: Revisions to the forecast of cash dividends in the current quarter: No

3.

7,615

6 months ended September 30, 2018: 3,662 million yen ((79.1)%)
6 months ended September 30, 2017: 17,497 million yen (- %)Earnings per share

Note: Equity

(

16.3)

-

13.00

Total

Yen
28.50
32.00

Forecast of Consolidated Financial Results for the Year ending March 31, 2019 (From April 1, 2018 to March 31, 2019)(%: 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
Year ending March 31, 2019428,200
8.3
24,900 (8.1)
24,1006.2
14,700 (24.3)
89.40

Note: Revisions to the forecast of consolidated financial results in the current quarter: No

*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) Adoption of Accounting Treatments Simplified or Unique for Preparation: No(3) 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(4) Issued Shares (Common stock)[1] Number of issued shares at the end of the period (including treasury stock):
6 months ended September 30, 2018:

171,459,479 sharesYear ended March 31, 2018:

171,459,479 shares[2] Number of treasury stock at the end of the period:
6 months ended September 30, 2018:

7,021,124 sharesYear ended March 31, 2018:

5,037,124 shares[3] Average number of shares during the period:
6 months ended September 30, 2018:

166,044,681 shares

6 months ended September 30, 2017:

166,208,804 shares

Note: Number of the treasury stocks as of September 30, 2018 included 30,700 shares, and as of March 31, 2018
included 196,100 shares owned by Trust and Custody Service Bank, Ltd (Trust Account E).

*This quarterly summary report is exempt from quarterly review procedure based on the Financial Instruments
and Exchanges Act.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes
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 tochanges in circumstances and other developments. More information concerning these forecasts can be found in P.4“1. Qualitative Information for the Six-Months Period Ended September 30, 2018 (3) Commentary on
Forward-Looking Statements Including Forecast of Consolidated Financial Results” in the attachment.

Table of Contents

1.

2.

Qualitative Information for the Six-Months Period ended September 30, 20182

(1) Commentary on Business Results

2(2) Analysis Concerning Financial Position

4(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results

4

Quarterly Consolidated Financial Statements and Major Notes

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income
and Quarterly Consolidated Statements of Comprehensive Income7(3) Quarterly Consolidated Statements of Cash Flows

9(4) Notes Regarding Quarterly Consolidated Financial Statements

11(Notes Regarding Going Concern)

11(Notes Regarding Significant Changes in the Amount of Shareholders’ Equity)

11(Additional Information)

11(Segment Information)

11

-1-

1.

Qualitative Information for the Six-Months Period ended September 30, 2018

(1) Commentary on Business Results
The global economy, during the second quarter of the consolidated cumulative period, saw a continued persistence ofthe gradual recovery, despite the sense of uncertainty about the future deepening on political and policy levels.
Meanwhile, in the Japanese economy, although corporate earnings continued to recover, the sense of uncertainty about
the future deepened owing to the impact of natural disasters. There was a significant impact in the medical device andpharmaceutical industries from the 2018 drug price revisions. Even under these circumstances, the Nipro Group has
made efforts 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 second quarter of the consolidated cumulative period increased YoY by 10.9% from the same
period of the previous year to 208,325 million yen. As for profit, increased profit owing to increased sales absorbed an
impact from the revised drug prices and due to cost reduction operating income increased by 4.6% YoY to 12,022 million
yen. Ordinary income rose 16.3% YoY to 13,699 million yen due to increased gains on foreign exchange andmiscellaneous income. Additionally, the second quarter profit attributable to owners of parent decreased YoY by 8.1% to7,615 million yen due to an increase in corporate tax and income taxes–deferred.
The overview of the results for the second quarter of the consolidated cumulative period by business segment is asfollows.
From the first quarter of this fiscal year, we made changes to the reporting segments. For more information, pleaserefer to “2. Notes Concerning Changes to Reporting Segments” under “2. Quarterly Consolidated Financial Statements
and Major Notes, (4) Notes Regarding Quarterly Consolidated Financial Statements, (Segment Information), II Six
months ended September 30, 2018”. The following year-on-year comparisons have been calculated using numericalvalues of the same period last year which have been rearranged into the revised segments.

(i)

Medical-Related Business
The market environment in domestic sales became severe as medical fees and drug prices were revised in April of thisyear. 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 HDF filters (dialysis products) anddialysis machines. In the Pharmaceutical Sales Division, despite an impact from the revised drug prices, sales of oral andexternal use drugs grew mainly centered on dispensing pharmacies, owing in part to the effects of collaborations withpharmaceutical wholesalers. Furthermore, in DPC hospitals, there was not only a switching from original drugs, but there
was also an increase in switching from the generic drugs of other companies, from a stable supply perspective and salesof injection grew mainly centered on DPC hospitals. Moreover, in regard to regenerative medicine, on June 29 of this year
we submitted an application to the Ministry of Health, Labour and Welfare for the manufacture and sales approval as a“regenerative medicine product” of the “autologous bone marrow mesenchymal stem cells for use in spinal cord injury
treatments” (Investigational drug identification code: STR01) that we are jointly developing with Sapporo Medical
University.
Meanwhile, overseas sales revenues displayed steady growth as a result of proactive sales activities around the world.
In North America, which we have positioned as one of our most important markets, we renewed a long-term contract witha leading dialysis provider and further strengthened our partnership. In China and India, sales of dialysis machinesremained favorable and accordingly sales of dialyzers were also favorable. In other regions, especially, sales of dialysis
products expanded steadily. Going forward, we will continue working to enhance customer satisfaction by quickly
responding to front line needs, making the best utilization of our sales networks all over the world, and expand sales.
Regarding our overseas manufacturing facilities, the new dialyzer production line at our factory in Hefei/China is
operating smoothly and the preparations for the start-up of the new line at our factory in India from the beginning of the-2-

next year are now well underway. We are steadily enhancing our overseas dialyzer production frameworks.
As a result, net sales of this business increased 14.6% YoY to 159,686 million yen.

(ii)

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.
As a result, while production increased year on year, net sales of this business decreased 3.2% from the previous year
to 30,375 million yen, due to the impact from switching to in-house manufactured products from products for othercompanies.

(iii) PharmaPackaging BusinessIn the PharmaPackaging Business, we have domestically and internationally promoted proactive technical sales
activities aimed at capturing the needs and new demands of our globalizing customers and the development ofhigh-performance and high-quality products for medical devices such as devices for the preparation and administration ofpharmaceuticals and pharmaceutical packaging materials including rubber, plastic and kit products as well as existing
glass products.
Overseas sales faced difficulties in China due to the repercussions from environmental regulations and drug supply
issues in pharmaceutical companies as well as the impact from the increase in manufacturers that temporarily suspended
production due to the extreme heat. However, in Europe, sales grew year on year due to the significant growth of syringes
in Germany and glass tubes in France. In India, sales of high value-added glass tube were solid.
In Japan, sales of vials and rubber stopper were favorable and we had also secured consistent sales of glass tube.
While assembly manufacturer inventory adjustment continues for thermos bottles, we will strive to maintain a stablesupply in the second half of the fiscal year and enhance sales. As to medical device, sales of dental special needles andtransfusion system were solid. At the Biwako Plant, through a thorough enhancement of quality and further automationand efficiency, we are optimizing the production environment through the introduction of new equipment, in order topromote the establishment of production frameworks for pharmaceutical containers. Furthermore, we are focusing on
enhancing production and sales frameworks through an expansion of the portfolio, centered on vials.
As a result, net sales of this business increased 6.2% YoY to 18,247 million yen. As a comprehensive manufacturer ofpharmaceutical packaging materials, the PharmaPackaging Business Division will continue to strive to expand businessby developing and introducing advanced products to the market that meet medical needs of countries all over the world.

(iv) Other BusinessAmong other business, net sales from the real-estate rental business, etc. were 15 million yen (down 4.0% YoY).

-3-

(2) Analysis Concerning Financial Position(i)

Assets, liabilities, and net assets
Total assets increased 17,046 million yen from the end of the previous consolidated fiscal year to 843,493 million yen at

the end of the second quarter under review. Current assets increased 11,822 million yen and noncurrent assets increased
5,223 million yen. The main reason for the increase in current assets was an increase of 3,529 million yen in notes andaccounts receivable-trade, and the main reason for the increase in noncurrent assets was an increase of 6,459 million yen
in investment securities.
Total liabilities increased 18,116 million yen from the end of the previous consolidated fiscal year to 661,077 million yen.
Current liabilities increased 10,263 million yen and noncurrent liabilities increased 7,853 million yen. The main reason for
the increase in current liabilities was an increase of 17,371 million yen in short-term loans payable, and the main reason
for the increase in noncurrent liabilities was an increase of 6,797 million yen in long-term loans payable.
Total net assets decreased 1,069 million yen from the end of the previous consolidated fiscal year to 182,415 million
yen. Shareholders' equity increased 2,920 million yen and accumulated other comprehensive income decreased 3,886
million yen. As a result, equity ratio decreased by 0.5% from the end of the previous year to 20.4%.

(ii)

Consolidated Cash FlowsThe ending balance of cash and cash equivalents increased 456 million yen from the end of the previous consolidated
fiscal year to 136,056 million yen at the end of the second quarter under review.
(Cash flows from operating activities)
Net cash provided by operating activities was 19,659 million yen. The main accounts of cash inflow were depreciation,
16,411 million yen and profit before income taxes, 13,769 million yen. The main account of cash outflow was increase innotes and accounts receivable-trade, 5,853 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 37,572 million yen. The main account of cash inflow was proceeds fromwithdrawal of time deposits, 2,577 million yen. The main account of cash outflow was purchase of non-current assets,
33,089 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 20,175 million yen. The main account of cash inflow was proceeds fromlong-term loans payable, 64,920 million yen. The main account of cash outflow was repayment of long-term loans payable,
33,178 million yen.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
At this moment, we have not made any revision to the forecast of consolidated financial results for the year ending March
31, 2019, which was announced on November 6, 2018.

-4-

2. Quarterly Consolidated Financial Statements and Major Notes(1) [Quarterly 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

- 5 -

As of
September 30, 2018

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

143,620
144,040
92,025
11,75429,48921,297(1,317)440,910207,198(98,987)
108,211258,817(180,543)
78,27332,0793,707(2,746)960
37,53754,423(41,213)
13,210270,273

208,992(101,812)
107,180
261,347(184,775)
76,571
31,912
5,166(2,829)2,337
40,641
56,284(42,861)
13,422272,066

27,3582,366
16,26845,994

26,1692,311
17,00345,48462,936
10,354
12,644(4,844)81,091
397,359
826,447

69,396
8,078
10,977(3,420)85,032402,583
843,493(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

- 6 -

As of
September 30, 2018

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

66,694135,037
10,000900
1,324
11,484
－
5,408
6,949
361
5,275
18,012
261,447

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

4,700
25,000357,315
3,885
350
4,621
679
169
2,908
399,630
661,077

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

84,39789,352(8,867)
164,883(712)(69)
11,40436
10,658
10,863
183,485
826,447

2,719
(49)
4,031
71
6,772
10,760
182,415
843,493

(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income]Quarterly Consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2017
(From April 1, 2017
to September 30, 2017)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
State subsidy
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Loss on reduction of non-current assets
Compensation expenses
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- 7 -Six months ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)

187,903
128,50959,39347,897
11,495

208,325
144,380
63,94451,922
12,022

285
777
1,081
36
658
2,839

339
908
1,620
45
1,014
3,928

1,743
815
2,558
11,776

1,455
796
2,251
13,699

56
589
225
23
895

70
557
－
－
627

162
590
928
651
2,332
10,3394,541(2,659)
1,882
8,456
174
8,282

78
114
19
344
557
13,769
5,388
646
6,034
7,735
120
7,615

Quarterly Consolidated Statements of Comprehensive Income
Six months ended
September 30, 2017
(From April 1, 2017
to September 30, 2017)

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- 8 -Six months ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)

8,456

7,735

10,04742(1,106)
125
(67)

3,432
19
(7,407)
31
(148)

9,040
17,497
17,451(4,073)
3,662
3,728

45

(66)

(3) [Quarterly Consolidated Statements of Cash Flows](Millions of yen)Six months ended
September 30, 2017
(From April 1, 2017
to September 30, 2017)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Share of (profit) loss of entities accounted forusing 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
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 dividend 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
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 governmental subsidy income
for investment in property and equipment
Net decrease (increase) in short-term loans receivable
Payments of loans receivableCollection of loans receivable
Other payments
Net cash provided by (used in) investing activities- 9 -Six months ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)10,33915,751
50
1,502
(36)

13,76916,411
70
1,742
(45)

191
146
(1,068)
1,743
(530)
(225)
(589)
590
(5,862)(3,649)
(74)
4,454
2,913
131
25,778
1,071(1,698)87(277)(3,915)21,045(79)
198(1,247)
1,455
851
－
(557)
114
(5,853)(3,276)
5,764(249)(5,142)(0)
23,9281,266(1,416)394(199)(4,314)
19,659(2,479)
1,209
(415)
2,287
－
(445)
－
(32,401)
238
(120)
1,592

(4,203)
2,577
(140)
112
(61)
(1,352)(72)(33,089)
339
(4)
1,580

628
(177)
16
(28)
(30,096)(2,734)(523)
0－(37,572)(Millions of yen)Six months ended
September 30, 2017
(From April 1, 2017
to September 30, 2017)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from sales of treasury shares
Purchase of treasury shares
Purchase of treasury shares of subsidiaries
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
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 equivalentsfrom newly consolidated subsidiary
Cash and cash equivalents at end of period- 10 -

Six months ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)

7,907
51,379(36,238)
(645)
116
(0)
(21)
(566)
(3,574)(20)(57)(5,481)64,920(33,178)(615)
150(3,012)－(629)(1,831)(36)(111)

18,278875
10,103112,046－

20,175(1,879)383
135,59973

122,150

136,056

(4) Notes Regarding Quarterly Consolidated Financial Statements(Notes Regarding Going Concern)
N/A(Notes Regarding Significant Changes in the Amount of Shareholders’ Equity)
Based on a resolution passed on July 3, 2018, at the meeting of the board of directors, the Company acquired treasury
stocks of 2,149,400 shares. Due to the acquisition, treasury stocks increased by 2,862 million yen during the six-month
period ended September 30, 2018 to 8,867 million yen as of the end of the 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 first quarter of the consolidated cumulative period. Dueto this application, deferred tax assets are presented under investments and other assets and deferred tax liabilities arepresented under non-current liabilities.
(Segment Information)
Ⅰ
1.

Six months ended September 30, 2017 (From April 1, 2017 to September 30, 2017)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
Other(Note.1)

Adjustment(Note.2)

Quarterly
Consolidated
StatementsofIncome(Note.3)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

139,341

31,363

17,183

187,88814

187,903－

187,903

871

6,155

2,524

9,551

518

10,069(10,069)－

140,21237,51919,707

197,439533

197,973(10,069)

187,903

16,4425,056

16

21,51526

21,542(10,046)

11,495

Total

Total

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

Total
Segment profit(loss)(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales byheadquarter.
2. Adjustment for the segment profit (loss) of (10,046) million yen includes deduction of intercompany profits oninventories of (233) million yen and corporate cost of (9,812) million yen. Corporate cost primarily consists ofgeneral and administrative expenses and research and development cost which do not belong to the reporting
segment.
3. Segment profit (loss) is adjusted to the operating income on the quarterly consolidated statements of income.
2.

Information about Impairment Loss on Fixed Assets and Goodwill by Reportable Operating Segment
N/A- 11 -

Ⅱ
1.

Six months ended September 30, 2018 (From April 1, 2018 to September 30, 2018)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
Other(Note.1)

Adjustment(Note.2)

Quarterly
Consolidated
StatementsofIncome(Note.3)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

159,686

30,375

18,247208,30915

208,325－

208,325

4,332

8,478

2,389

15,200706

15,907(15,907)－

164,018

38,854

20,637

223,510721

224,232(15,907)

208,325

18,9594,281

323

23,56440

23,604(11,582)

12,022

Total

Total

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

Total
Segment profit(loss)(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales byheadquarter.
2. Adjustment for the segment profit (loss) of (11,582) million yen includes deduction of intercompany profits oninventories of (1,199) million yen and corporate cost of (10,382) million yen. Corporate cost primarily consists ofgeneral and administrative expenses and research and development cost which do not belong to the reporting
segment.
3. Segment profit (loss) is adjusted to the operating income on the quarterly consolidated statements of income.
2.

Change in Reportable Segment
Since the first quarter of this fiscal year 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 period ended September 30, 2017 is prepared based on the reportable segment
after the reclassification.

3.

Information about Impairment Loss on Fixed Assets and Goodwill by Reportable Operating Segment
N/A- 12 -