Annual Report 2009
Year Ended March 31, 2009

Medical Equipment
Business

Glass & Materials
Business

ProfileSince its founding in 1954, the Nipro Group has enjoyed continuing growth thanks to
the trust it has achieved worldwide through the manufacture and sale of medical
equipment and high-value-added pharmaceuticals. Key themes that propel our
ongoing growth are the dedicated pursuit of technology that helps improve the qualityof life of patients and the development of original products in line with our corporate
philosophy of contributing to society through technology-oriented business activities.
The Nipro Group is highly valued in Japan and overseas as an artificial kidney and dialyzer
manufacturer, and is now working to be known equally for its artificial hearts, lungs,
pericardia, skin, and blood. The Group is also actively involved in the generic pharmaceuticalindustry with the promotion of injection, oral, and percutaneous absorption drugs.
Centering on the two main areas of medical equipment and pharmaceuticals, The Nipro
Group plans to focus on the research of medical equipment and expand operations as
a comprehensive manufacturer. Bounding toward the future, we aim to become a top
maker of artificial organs worldwide and the chief maker of pharmaceuticals in Japan.

PharmaceuticalBusiness

MedicalEquipment
Business

PharmaceuticalBusiness

Glass &
Materials
Business

Consolidated Financial Highlights
Millions of yen

Nipro Corporation and its Consolidated Subsidiaries
Years ended March 31, 2009 and 2008
For the year:....................................................................................
Net sales..........................................................................
Operating income...................................................................................
Net income......................................................................
Capital expenditures..........................................................
Depreciation and amortization..............................................................................
R&D expenses
At year-end:..................................................................................
Total assets.....................................................................................
Net assets
Per share data (in yen and U.S. dollars):
Net income:...................................................................................
Basic..............................................................................
Cash dividends.........................................................................................
EquityThousands of U.S. dollars

2009

2008

¥ 175,945
14,775
4,531
33,142
18,1095,352¥ 172,113
13,677
4,454
25,90015,054
6,194$

1,791,153
150,412
46,126337,392
184,353
54,484¥ 330,641
95,049¥ 349,302
118,156$

3,365,988
967,617

¥

¥

$

0.73
0.33
15.26

71.4
32.0
1,498.5

70.2
37.5
1,861.8

2009

The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ¥98.23=US$1, the approximate exchange rate on March 31, 2009.

1

Contents

Disclaimer regarding Forward-looking Statements

ProfileTo our shareholders and investors
Research and Development
Plant and Equipment
Issues Facing the Company
Status of Corporate Governance, etc.
Board of Directors and Auditors
Financial Review
10 year summary
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Report of Independent Auditors
Corporate Information

This report contains forward-looking statements regarding businessindices, strategies and performance representing the expectations
and judgments of the management, based on information available to
the Company and publishable at the time this report was prepared.
When reading this report, please understand that forward-looking
statements involve potential risks and uncertainties; actual futurebusiness performance and forecasts may therefore differ materiallyfrom those contained in these statements, given the possible
emergence of new factors or changes in economic circumstances
and/or the business environment.

1
2
5
7
11
12
14
15
19
21
23
24
25
26
37
38

To our shareholders and investors

Both sales and profits increased despite
the decelerating global economy.
Although the Nipro group (The Group) was not able to meet initial guidance due to drastic fluctuations
in exchange rates, the Group has adjusted its organization in response to the challenges ahead
and should be able to approach targets for fiscal year ending March 2011.

Overview of business and results during
the current fiscal year
Although the Group felt the full impact of the high yen
overseas, performance was strong domestically.
During the current fiscal year ended March 2009, the entire
global economy suffered from the impact of the financial crisis
triggered in the United States, and fell into an economic
recession. The Japanese economy was exposed to rampant
volatility in the prices of crude oil and raw materials, while facing
rapid yen appreciation and a downturn in the economy.
The Group has newly defined its organization as a specialist
manufacturer of medical equipment and pharmaceuticals andwas posed for expansion in the global market. However, theyear was characterized by the substantial adverse impact
caused by volatility in the foreign exchange markets.
In the Medical Equipment business, the Group aims tobecome the world’s top manufacturer of its core product,
dialyzers. It is thought there is an annual global demand of from150 million to more than 170 million dialyzers. The Group’s
target is to be capable of producing 60 million dialyzers by thefiscal year ending March 2011. As a result of recent expansion,
current production capacity is 47 million dialyzers. The Grouphas introduced new products such as a dialyzer using a hollow
fiber membrane that was internally produced and sales havebeen very favorable in the domestic market. In markets
overseas, however, because our main products, dialyzers havebeen exported from Japan, both sales and profits have suffered
due to appreciation of the yen, although there has been growthin the number of goods sold. For this business, which includes
dialysis-related products, sales on a consolidated basis were¥113.0 billion (up by 1.7% on the previous year).
In the Pharmaceuticals business, domestic
developments have focused mainly on two pillars: themanufacture and sales of generic drugs and the contruct
manufacturing business. There was solid growth in the Group’s
distinctive generic drugs, including kit preparations, oral drugs,

and dialysis-related products, thanks in part to measurestaken to expand and promote sales. The contruct
manufacturing business is characterized by its adaptability toevery kind of pharmaceutical field. This fiscal year, a production
plant for oral drugs was newly constructed and we became thelargest pharmaceutical contruct manufacturing corporategroup in Japan. For this division, sales on a consolidated basis
were ¥52.7 billion (up by 8.1% on the previous year).
As a result, Group sales were ¥176.0 billion (up by 2.2% on
the previous year), operating income was ¥14.8 billion (up by
8.0% on the previous year), and net income was ¥4.5 billion (upby 1.7% on the previous year) on a consolidated basis, including
the Glass & Materials business that manufactures and sells
pharmaceutical glass and materials, and the other businesses.
In response to volatility in foreign exchange rates, overthe short-term the Group plans to improve business operations
and cut production costs, and respond to this issue over the
long-term by moving centers of production overseas.

Business Strategy
The Group has taken the bold step of setting a new¥500 billion target for sales on a consolidated basis.
For medical equipment and pharmaceuticals, the Group has
striven to attain the FY2010 management target that it has set
for the fiscal year ending March 2011, consisting of target salesof ¥200 billion and recurring income of ¥20 billion. In terms ofrecurring income of ¥20 billion, it is difficult to anticipate
because it is partly depends on the fluctuation of echange rateof foreign currencies, but the sales of ¥200 billion is anticipatedthat this goal should be virtually achievable.
The Group, therefore, has set a new target for FY2020, andwill begin working towards this goal of reaching sales of ¥500
billion in fields in which it already has products. The Group will
work to achieve this goal by focusing on raising production
capacity in fields in which increases in volume are expected, and2

To our shareholders and investors

In order to increase the number of our private investors
and liquidity in the stock market, the Group changed the trading
unit from 1,000 shares to 100 shares on July 1, 2009.

providing high-quality products at low cost. The plan is to exploit
this business model to its fullest potential and utilize our formidable
price competitiveness in order to expand market share.
In the Medical Equipment business, it is anticipated thatdemand for dialyzers will increase in emerging countries, andthat demand on the global market will continue to grow over
the years. We will make efforts to expand sales volume whileremaining profitable by promoting improvements in the internal
production rate. This has been made possible thanks toorganizational enhancements that facilitate consistent production.
The Group will also manage to expand sales volume whileremaining profitable. In the Pharmaceutical business as well, theGroup plans to continue promoting its two core businesses ofselling generic drugs and the contract manufacturing business inorder to achieve the FY2020 target.

Prospects for next fiscal year
Sales are expected to increase for the Group overall
thanks to progress made in response to fluctuations
in foreign exchange rates.
Next fiscal year ending March 31,2010, the world economy is
not expected to stage an early recovery. In the Japanese
economy as well, it is anticipated that corporate earnings willcontinue to feel pressure from the high yen and increased
competition, and that the management environment will remainharsh both overseas and in Japan.
In response, the Group has enacted various measuresduring the current fiscal year to reduce costs and improve
production efficiency, and is trying to make adjustments in its
organization to enable it to respond more efficiently to fluctuations
in foreign exchange rates. Although the business environment
remains uncertain, the Group will strive to aggressively face thechallenges that lie ahead this next fiscal year.
In the Medical Equipment business, we will work towards
understanding the different needs of markets worldwide andbuild up our points of sales overseas. In the dialyzer field, there
are plans to develop new products in response to market
needs, however it is expected that the high yen could adversely
affect these plans.
In the Pharmaceutical business, steady expansion is

Dividend policy
Based on the dividend policy, a yearly dividend of ¥32
per share was issued.
The Group has adopted a performance-based remuneration
system as its basic stance towards dividends, aiming at a 50%
payout ratio on a unitary basis.
This year, the Group issued an interim dividend of ¥32
yen per share. At the end of the full fiscal year, as the target
dividend payout ratio had already been significantly
exceeded, there will unfortunately be no year-end dividend.
We also plan to issue dividends based on this dividend
policy in the next fiscal year as well.

Net Sales(Millions of yen)

250,000

200,000(Millions of yen)

15,000

192,320

206,801
184,363

12,332

12,000172,113 175,945

13,053

13,677

14,775

10,404150,000

9,000

100,000

6,000

50,000

3,000

0

0

2005 2006 2007 2008 20093

Operating Income

2005 2006 2007 2008 2009

anticipated from increased sales of our generic drugs and thestart of our production for pharmaceuticals on large-scaleconsignment orders.
Guidance for the next fiscal year ending March 31, 2010
on a consolidated basis consists of sales of ¥180 billion (up by
2.3% on the previous year), operating income of ¥15 billion (upby 1.5% on the previous year), and net income of ¥6.05 billion(up by 33.5% on the previous year). These projections havebeen made based on the assumptions of ¥90 to the US dollar
and ¥120 to the euro.
The Group promotes environmental awareness in its
management principles, such as energy conservation and zero
emissions. In order to respond to the demands of the times, thepreservation of the global environment is very important, and wewould like to accelerate the implementation of environmental
measures next fiscal year ending March 31, 2010.
We hope that our shareholders and investors will lookforward to our future progress and results, and we would also
like to ask you for your continued support.
July 2009

Minoru Sano President

Minoru Sano
President

Net Income(Millions of yen)

Return on Equity
8.0

10,000

7.2

8,555

8,000

6.0
4.7

6,000

4,000

(%)

4,519

4,513

4,454

4,531

4.0

4.3

3.7

4.2

2.0

2,000

0

0

2005 2006 2007 2008 20092005 2006 2007 2008 20094

Research and development
Nipro group is promoting both research and development of
medical equipments and pharmaceutical products.
In the Medical Equipment Business, we are achieving steadyprogress in the field of cutting-edge, while trying to achieve highquality and functionality in the field of existing products. In the fieldof regenerative medicine, we have already commercialized
nerve-regeneration assisting tubes and pericardiac regeneration
assisting membranes. In the field of artificial organs, we aredeveloping systemized artificial lungs with high functionality, whileadvancing the introduction of implantable ventricular assist device(VAD). Artificial lungs and kidneys have been developed
comprehensively in the R&D facility of artificial organs.
We are also promoting fast commercialization of high-valueadded products by establishing a department of clinicaldevelopment. Another purpose of this department is to perform
speedy clinical tests under the compliance of good clinicalpractice (GCP), and to perform speedy communication withexamining authorities.
In the Pharmaceuticals Business, combination products (kitpreparations) that are developed through integrations withmedical equipment technology have been very successful. We arealso focusing efforts on the development of generic drugs andhave made steady progress in the development of oral dosage
forms by our proprietary drug preparation technologies to meetdemand for drugs that are easier to take. We are also making
steady progress in advanced research, including the developmentof artificial oxygen carriers drug delivery systems based on new
formulation technologies and non invasive administration systems.
In this consolidated accounting year, the total cost for R&D
activity was ¥5.4 billion (US$54,474.2 million).

Intervention-related medical equipment
We developed and introduced circulatory-organ-related medical
equipment that is used in intervention treatment and diagnosis. In
cardiovascular catheter-related products, there weredevelopments in new PTCA balloon catheters, thrombus vacuum
aspiration catheters, guiding catheters, and stents. In peripheral
blood vessel catheter-related products, development proceededin PTA catheters and peripheral stents.

Artificial organ-related medical equipment
We focuse on its core products in the field of artificial
kidney-related equipment and is developing and introducing
products such as artificial heart-lungs and heart-related medical
equipment used in the treatment of circulatory and respiratoryorgans. In artificial kidney-related products, we developed dialysis
machines, dialyzers, blood access products, blood circuits, and acontinuous hemofiltration blood circuit using a syringe pump. In
artificial heart-lungs-related products, development proceeded inoxygenators, perfusion tubing sets, centrifugal blood pumps,
venous reservoirs, hemoconcentrators, PCPS kits, percutaneouscatheter kits, and implantable left ventricular assist devices.

Regenerative medicine
We are developing regenerative medicine-related products suchas bag systems for culturing cells, bag systems for preserving
cells, and regenerative medicine products that stimulate and takeadvantage of the self-healing abilities of tissues and organs.
Developments were made in new-type cell culture bags filled withmedium islet, cell freezing containers, nerve-regeneration tubes,
and pericardium regenerative support membranes.

1 Medical Equipment BusinessPharmaceutical containers

The following research and development activities are performed
mainly through our Research & Development Laboratory.

In cooperation with pharmaceutical companies, our Pharmaceutical
Research Center developed medical equipment and kit containers
for medical equipment and pharmaceuticals. This included
double-bag kits for various kinds of pharmaceuticals and pre-filled
syringes.

General purpose medical equipment
We perform research and development in areas such as
infusions, catheters, fertility treatment, safety-related products,
and medical equipment for testing and treating diabetes. For
infusions-related products, development focused on a new hoodconnector system, a needleless three-way stopcock with achemical resistant connector, a precision infusion set with new
fixed-quantity tubing, and an infusion set with a filter to remove
foreign bodies. For catheter-related products, there wasdevelopment in antithrombotic central venous catheters,
catheters for new-born and premature infants, multi-lumen
seldinger catheters, and peripheral vein central venous
catheters. Development in fertility treatment-related products
focused on cova needles, embryo transfer catheters, sperm
injection catheters, and artificial insemination by husband
catheters. In safety-related products, there were developments
in SAFETOUCH™ AVFs, SAFETOUCH™ PSVs, SAFETOUCH™
cannulas (clamp-type), and SAFETOUCH™ coreless needles. In

5clinical testing products, development proceeded in bloodcollection needles with a flash bag function. In diabetes
treatment-related products, there were developments in infusion
sets for insulin pumps.

In vitro diagnostics(IVD)
We’ve developed new IVD’s that is useful for early diagnosis andmonitoring the effects of the treatment, as well as POCT systems
that takes advantage of medicak device technology, for
Alzheimer’s disease, rheuma drug-resistant tuberculosis, nutriton
assessment and diabetes mellitus.
The total amount of research and development costs in thisdivision for the current fiscal year was ¥1.9 billion (US$18.9
million).

2 Pharmaceutical Business
The following research and development activities were
performed, mainly through the Pharmaceutical Research Center.

Development of combination products (kit preparations)
We have proceeded with the development of combination
products that will contribute to the improvement of treatment
quality by promoting improved safety, sanitation, and efficiency forclinical practice. For pre-filled syringe, sales of new products,
including two products with one ingredient. In addition, there arenine products with three ingredients that are awaiting approval for
manufacture and sales, and five products with two ingredientsthat are being developed. Development has also proceeded withdouble chamber-type pre-filled syringe. For double-bag(liquid–and-powder), two products with two antibiotic ingredientsare awaiting approval for manufacture and sales. In the future, wewill strive to provide a wider variety of combination products.

Low dose-specification drugs (half-dose tablets)
Development of six products with six ingredients has actively
proceeded for low dose-requirement drugs, due to needs byelderly with renal insufficiency and drug metabolism disorder,
patients suffering from functional disorders, and healthworker
such as pharmacists at medical facilities. In addition, approval for
one ingredient has been acquired, one ingredient is underapplication for approval, and there are plans to apply for approval
for manufacture and sales of two more ingredients next year. In
the future, we will continue to develop pharmaceuticalpreparations that are in high demand.

Nutritional solution
We are developing new nutritional solution that can keep to aminimum the occurrence of vessel pain and thrombophlebitis
which are issues during peripheral, and provide patients withhigher amount of energy in comparison with existing products.
The third phase of clinical trials has been completed andpreparations for the approval application are being made.

Development of oral dosage forms
For oral dosage forms this year, twelve products with seveningredients will be placed on the market, and manufacture andsales approval was acquired for nine products with six
ingredients. In addition, new applications for approval have beenplaced for ten products with five ingredients. We are also

developing orally-disintegrating tablets that are easy to swallow.
Approval has been acquired for two products with one ingredientand application for approval has been placed for three productswith two ingredients.

Development of premixed bag preparations
We have begun development of premixed bag preparations that
contain drug solutions that have been diluted in advance to a set
level in order to prevent the risk of medical error. This year,
approval has been acquired for two products with two
ingredients, and one product is currently being developed. In the
future, we will continue to develop new products in considerationof needs and market demand.

Development of renal disease-related drugs
This year, application for manufacture and sales approval has
been placed for four products with one ingredient related toblood coagulation inhibitor by pre-filled syringe which is usedduring dialysis. In addition, four products with one ingredient are
currently being developed and there are plans to apply for
approval next year. In the field of hemo-dialysis preparations, we
proceeded with the development of innovative new formulations.
We are also actively developing recombinant erythropoietin,
bio-similar product, used for the therapy of renal diseases.

Application of new generic formulation technologies
We are active in the applied development of new technologies
that avoid the breakup of peptides and proteins that often occurs
with oral administration, and DDS technologies using liposomes,
also non-invasive administration systems.

Blood-related pharmaceuticals preparations
The development of hemoglobin encapsulated artificial oxygen
carriers is an industrial-academic cooperative project which is
promoted by the Ministry of Health, Labour and Welfare. The
project is making great progress and preparations forconstruction of production facilities are underway forinvestigational drugs. We are also cooperating with a university
research organization in the development of artificial oxygen
carriers using synthetic heme- and recombinant humanhemoglobins.
The total amount of research and development costs in thisdivision for the current fiscal year was ¥ 3.5 billion (US$35,5
million).

6

Plant and Equipment
1 Overview of Capital Investment, etc.
The Group (the Company and its consolidated subsidiaries) focusedon investing in research and development and product areas where
growth can be expected in the future for energy efficiency,
rationalization, product quality improvement, and increasing production
capacity. Capital investment (tangible fixed assets on an acceptancebasis; figures shown do not include consumption tax, etc.) during thisconsolidated fiscal year totaled ¥32.7 billion (US$332.5 million). Capital
investment by business segment is shown below.
The Medical Equipment business segment made capital
investments to increase production capacity and for production
rationalization at the Company’s Odate factory and the Thailand
factory of Nipro (Thailand) Corporation Ltd.
The Pharmaceutical buiness segment made capital investments in a
new project for antibiotic preparations at the Odate factory of Nipro Pharma
Corporation. Furthermore, Tohoku Nipro Pharmaceutical Corporation madecapital investments for new contract manufacturing of oral drugs.

The Glass & Materials business segment made capital investments forglass syringes used for pharmaceuticals at the Company’s Otsu factory.
Elimination and Corporate capital investments were made primarily inequipment and devices for research and development at the Pharmaceutical
Research Center and Research and Development Laboratory.
The required funds were allocated from owned capital and loans.
There was no material retirement or disposal of plant and equipment.
Current: Consolidated Fiscal Year
Millions of yen

Medical Equipment ..................... ¥Pharmaceutical ...........................
Glass & Materials ........................
Other ...........................................
Eliminations/Corporate ................
Total ...........................................

11,306
20,392134
68
760
32,660Thousands of
U.S. dollars$ 115,097
207,595
1,364
692
7,737
332,485

2 Status of Major Plant and Equipment(1) Reporting Companies
As of March 31, 2009
Name of Facility(Location)
Odate Factory(Odate, Akita)
Otsu Factory(Otsu, Shiga)
Tokyo Office(Bunkyo-ku, Tokyo)
Domestic Operations
21 Branches and
33 Sales Offices in Japan
Research and Development Laboratory &Pharmaceutical Research Center (Kusatsu, Shiga)
Headquarters(Kita-ku, Osaka)

Leased Assets, Other(Settsu, Osaka, Other)

Name of Facility(Location)
Odate Factory(Odate, Akita)
Otsu Factory(Otsu, Shiga)
Tokyo Office(Bunkyo-ku, Tokyo)
Domestic Operations
21 Branches and
33 Sales Offices in Japan
Research and Development Laboratory &Pharmaceutical Research Center (Kusatsu, Shiga)
Headquarters(Kita-ku, Osaka)

Leased Assets, Other(Settsu, Osaka, Other)

Name of Segment by
Business Category
Medical Equipment
Pharmaceuticals
Glass & Materials
Glass & Materials
Medical Equipment
Pharmaceuticals
Glass & Materials
Medical Equipment
Pharmaceuticals
Other or Corporate
Medical Equipment
Pharmaceuticals
Glass & Materials
Corporate
Other

Name of Segment by
Business Category
Medical Equipment
Pharmaceuticals
Glass & Materials
Glass & Materials
Medical Equipment
Pharmaceuticals
Glass & Materials
Medical Equipment
Pharmaceuticals
Other or Corporate
Medical Equipment
Pharmaceuticals
Glass & Materials
Corporate
Other

Book Value (Millions of yen)
Buildings and Structures Machinery and Equipment
Construction in progress
Land (Area m )¥ 8,633¥ 1,270¥ 12,637¥
961
Medical Equipment(198,025)
Production Facilities, etc.

Type of Asset

2

Glass Tube Processing
Production Facilities, etc.
Sales Facilities

212

213

287

58

Sales Facilities

443

Research and Development
Plant and Equipment, other
Other Plant and Equipment

Other Plant and Equipment

Number of Employees(People)1,062

25(4,603)
1,975
(376)

—

450

36

—

2,320

23

657

357
(2,565)

42

1,499

581

2,224

865

7

3,563

396

291

467
(26,544)
1,508(1,891)

—

2,195

266
2,325
184

1,376

2

—

6,347

—

4,969
(54,028)[21,371]*Note:1

Book Value (Thousands of U.S. dollars)
Construction in progress
Buildings and Structures Machinery and Equipment
Land (Area m )Medical Equipment$ 12,929$ 87,886$128,647$9,783
Production Facilities, etc.
(198,025)

Type of Asset

2

Number of Employees(People)Total$239,245
1,062

255(4,603)
20,106
(376)

—

4,581

36

—

23,618

23

6,688

3,634
(2,565)428

15,260581

22,6418,806

71

36,272

266

4,031

2,962

4,754
(26,544)
15,353—

22,346

184

14,00920

50,585(54,028)[21,371]*Note:1—

64,614—

Glass Tube Processing
Production Facilities, etc.
Sales Facilities

2,158

2,168

2,922

590

Sales Facilities

4,510

Research and Development
Plant and Equipment, other
Other Plant and Equipment

Other Plant and Equipment

Note: (1) [21,371] is the area(m2) of major facilities leased to entities other than consolidated subsidiaries.

7

Total
¥ 23,501

(2) Domestic subsidiaries
As of March 31, 2009

Name of Facility Name of Segment by(Location)
Business Category
Nipro Medical
Tatebayashi Factory
Medical Equipment
Industries Co., Ltd. (Tatebayashi, Gunma)
Nipro Pharma Ise Factory
Pharmaceuticals
Corporation (Matsuzaka, Mie)
Odate Factory
Pharmaceuticals(Odate, Akita)
Tohoku Nipro Kagamiishi Factory
Pharmaceuticals
Pharmaceutical (Kagamiishi-machi,
Corporation
Iwase-gun, Fukushima)
Zensei Pharmaceutical Kishiwada Factory
Pharmaceuticals
Industries Co., Ltd. (Kishiwada, Osaka)
Nipro Patch Co., Ltd. Kasukabe Factory
Pharmaceuticals(Kasukabe, Saitama)
Hanyu Factory
Pharmaceuticals(Hanyu, Saitama)Company

Name of Facility Name of Segment by(Location)
Business Category
Nipro Medical
Tatebayashi Factory
Medical Equipment
Industries Co., Ltd. (Tatebayashi, Gunma)
Nipro Pharma Ise Factory
Pharmaceuticals
Corporation (Matsuzaka, Mie)
Odate Factory
Pharmaceuticals(Odate, Akita)
Tohoku Nipro Kagamiishi Factory
Pharmaceuticals
Pharmaceutical (Kagamiishi-machi,
Corporation
Iwase-gun, Fukushima)
Zensei Pharmaceutical Kishiwada Factory
Pharmaceuticals
Industries Co., Ltd. (Kishiwada, Osaka)
Nipro Patch Co., Ltd. Kasukabe Factory
Pharmaceuticals(Kasukabe, Saitama)
Hanyu Factory
Pharmaceuticals(Hanyu, Saitama)Company

Tohoku Nipro Pharmaceutical Corporation

Type of AssetBook Value (Millions of yen)
Buildings and Structures Machinery and Equipment Land (Area m )2

Medical Equipment
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities¥ 1,393¥ 2,220

7,766

2,364

9,913

5,405

7,076

5,278

Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities

1,446

327

1,232

675

797

144

Type of Asset

Construction in progress¥ 488(14,519)
1,310(92,935)
1,247(195,468)
458(83,841)¥ 97

552(22,223)
1,008(9,611)455(16,680)531

11,971

640

9,571

26,136527–

12,812

156

–

2,325

188

3

2,918

166

1,412

2,808

40

Book Value (Thousands of U.S. dollars)
Buildings and Structures Machinery and Equipment Land (Area m )2

Medical Equipment
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities$14,181$22,600

79,05924,066

100,91555,02472,03553,731

Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities

14,721

3,329

12,542

6,872

8,114

1,466

$ 987

Number of Employees(People)$ 42,736
363

5,406

121,867640

97,435

266,069527–

130,429

156–

23,669188

30

29,706

166

14,37428,58640

Construction in progress$4,968(14,519)
13,336(92,935)
12,695(195,468)
4,663(83,841)
5,619(22,223)
10,262(9,611)
4,632(16,680)

Number of Employees(People)¥ 4,198
363
Total

Total

Nipro Patch Co., Ltd. Hanyu Factory8Plant and Equipment(3) Overseas subsidiaries
As of March 31, 2009

Company
Nipro (Thailand)
Corporation Limited
Nipro (Shanghai)Co., Ltd.
Nipro Medical Ltda.

Company
Nipro (Thailand)
Corporation Limited
Nipro (Shanghai)Co., Ltd.
Nipro Medical Ltda.

Name of Facility(Location)

Name of Segment
by Business Category

Thailand Factory
Medical Equipment(Ayuthaya, Thailand)
Shanghai Factory
Medical Equipment(Shanghai, China)
Brazil Factory
Medical Equipment(Sorocaba,
Sao Paolo, Brazil)
Name of Facility(Location)

Name of Segment
by Business Category

Thailand Factory
Medical Equipment(Ayuthaya, Thailand)
Shanghai Factory
Medical Equipment(Shanghai, China)
Brazil Factory
Medical Equipment(Sorocaba,
Sao Paolo, Brazil)Book Value (Millions of yen)
Land Construction in Total
Machinery and(Area m2 )Equipment
progress¥ 6,746¥268 ¥ 3,639 ¥ 12,795(159,148)
57
2,873
1,902
—
<40,681>*Note:2
47
38
1,752
1,263
(73,623)

Number of
Employees(People)Book Value (Thousands of U.S. dollars)
Machinery and
Buildings andLand Construction in Total(Area m2 )Equipment
progress
Structures$2,727 $37,046 $130,256$21,807$68,676(159,148)
580
29,24819,363—
9,305<40,681>*Note:2477
387
17,836
4,114
12,858(73,623)

Number of
Employees(People)Type of Asset

Buildings andStructures
Medical Equipment¥ 2,142
Production Facilities
Medical Equipment
914
Production Facilities
Medical Equipment
404
Production Facilities

Type of Asset

Medical Equipment
Production Facilities
Medical Equipment
Production Facilities
Medical Equipment
Production Facilities

3,074
718
366

3,074
718
366

Note :(1) “Other” in book value is the total of machinery, equipment, fixtures, and construction in progress.
(2) <40,681> is the area(m2) of facilities leased from entitles other than consolidated subsidiaries.
(3) The figures shown above do not include consumption taxes, etc.
(4) There are no major facilities currently in abeyance.
(5) Number of Employees indicates the number of people employed.
(6) In addition to the above, the details of major facilities leased from entities other than consolidated subsidiaries are shown below.

i) Nipro Corporation
Major
Lease Period

Annual Lease Payments(Millions of yen)

Lease Contracts Balance(Millions of yen)

Host Computer andPeripheral Equipment,etc.

5 years

¥ 91

¥ 162

Company Vehicles, etc.

5 years

221

582

Major
Lease Period

Annual Lease Payments(Thousands of U.S. dollars)

Lease Contracts Balance(Thousands of U.S. dollars)Name of Facility(Location)

Name of Segment
by Business Category

Type of Facility

Head Office(Kita-ku, Osaka)

Medical Equipment
Pharmaceuticals
Glass & Materials
Corporate
Medical Equipment
Pharmaceuticals

Name of Facility(Location)

Name of Segment
by Business Category

Type of Facility

Head Office(Kita-ku, Osaka)

Medical Equipment
Pharmaceuticals
Glass & Materials
Corporate
Medical Equipment
Pharmaceuticals

Host Computer andPeripheral Equipment,etc.

5 years$ 926$ 1,649

Company Vehicles, etc.

5 years

2,250

5,925

Domestic Divisions
21 branches and33 sales offices in Japan

Domestic Divisions
21 branches and33 sales offices in Japanii) Domestic subsidiaries

9

Company

Name of Facility(Location)

Name of Segment by
Business Category

Type of Facility

Nipro Pharma
Corporation

Ise Factory(Matsuzaka, Mie)

Pharmaceuticals

Pharmaceuticals
Production Facilities

Company

Name of Facility(Location)

Name of Segment by
Business Category

Type of Facility

Nipro Pharma
Corporation

Ise Factory(Matsuzaka, Mie)

Pharmaceuticals

Pharmaceuticals
Production Facilities

Major
Lease Period

Annual Lease Payments(Millions of yen)

Lease Contracts Balance(Millions of yen)

5 years

¥ 39

¥ 66

Major
Lease Period
5 years

Annual Lease Payments
Lease Contracts Balance(Thousands of U.S. dollars) (Thousands of U.S. dollars)
$ 397

$ 672

3 Plans for New Construction or Disposal of Facilities(1) New Construction of Major Facilities, etc.
principally responsible for setting their own capital investment
plans. Plans for new construction of major facilities are asshown below.

The Reporting Company leads coordination of plans for new
construction of facilities to avoid duplicate investment acrossthe Group, since each individual consolidated subsidiary is
Company
Name of Facility

Location

Name of Segment by
Business Category

Type of
Facility

Reporting Company
Odate Factory

Odate,
Akita

Nipro (Thailand)
Corporation Limited
Nipro Pharma Corporation
Ise Factory
Nipro Pharma Corporation
Odate Factory

Ayuthaya,ThailandMatsuzaka,
Mie
Odate,
Akita

Medical Equipment
Pharmaceuticals
Glass & Materials
Medical Equipment

Medical Equipment
Production Facilities,
etc.
Medical Equipment
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities

Company
Name of Facility

Location

Name of Segment by
Business Category

Type of
Facility

Reporting Company
Odate Factory

Odate,
Akita

Nipro (Thailand)
Corporation Limited
Nipro Pharma Corporation
Ise Factory
Nipro Pharma Corporation
Odate Factory

Ayuthaya,ThailandMatsuzaka,
Mie
Odate,
Akita

Medical Equipment
Pharmaceuticals
Glass & Materials
Medical Equipment

Medical Equipment
Production Facilities,
etc.
Medical Equipment
Production Facilities
Pharmaceuticals
Production Facilities
Pharmaceuticals
Production Facilities

Pharmaceuticals
Pharmaceuticals

Pharmaceuticals
Pharmaceuticals

Planned Amount of Investment
Total AmountPaid-in Amount(Millions of yen)
(Millions of yen)

Means ofFund RaisingMonth and Year of Planned Completion
Construction Start
Month and Year¥ 3,760¥—

Loans and
Owned Capital

April 2009

March 2010

2,000

—

April 2009

December 2009

1,800

—

April 2009

March 2010

11,7705,670

Loans and
Owned Capital
Loans and
Owned Capital
Loans and
Owned Capital

May 2008

March 2010

Planned Amount of Investment
Total AmountPaid-in Amount(Thousands of U.S. dollars) (Thousands of U.S. dollars)

Means ofFund RaisingMonth and Year of Planned Completion
Construction Start
Month and Year$ 38,278$—

Loans and
Owned Capital

April 2009

March 2010

20,360—April 2009

December 200918,324—

April 2009

March 2010

119,82157,722Loans and
Owned Capital
Loans and
Owned Capital
Loans and
Owned Capital

May 2008

March 2010

Note :The figures shown above do not include consumption taxes, etc.

(2) Retirement of major facilities, etc.
There are no planned retirements, etc., of major facilities.

Nipro Corporation Odate Factory

Nipro Pharma Corporation Odate Factory10Issues Facing the Company
As far as the domestic sales in the Medical Equipment
business are concerned, in dialysis-related products, we will
focus on dialyzers, blood lines for dialysis, and dialysis
machines. We will strive to respond to market needs, develop
new products, deploy products in markets, offer improved
quality, and enhance marketing efforts in order to gain evenmore market share and sales growth.
In injection and infusion-related products, we hope togain market share led by products such as syringe needles,
syringes, infusion sets and PSV needles, and products thatincorporate safeguard mechanisms to prevent injuries fromintravenous catheter needles, etc. For nutrition-related
products, we will develop new products to meet market
demand while actively deploying and marketing our products.
In clinical testing products, we will develop, deploy,and increase the marketing of new products such as testing
equipment for blood sugar measurement and test agents fordiabetes patients. In addition, we will increase marketing ofblood-sampling tubes for blood tests and make active
market deployment efforts in order to gain more market
share. In the heart- and blood vessel-related fields, we will
make efforts to provide customers with a wider variety of
products, promote expanded market deployment andselling power, and gain market share by actively developing
and introducing new products such as vascular-related
products, artificial heart-lungs, and left ventricular assist
device-related products. We will also promote the active
introduction of products in new fields, such as those related
to applied regenerative medicine, iPS cells, and ES cells.
In response to the appreciation of the yen overseas,
we will make continual efforts to reduce expenses and more
fully develop points of sales overseas. Especially for ourcore dialyzer products, we will enhance marketing fordialyzers with standard triacetate membranes and dialyzers
with synthetic polymer membranes. In diabetes-related
products, we will engage in the development of productswith improved safety and more accuracy. In artificial
heart-lung-related products, products with improved
features are being introduced in continuously expanding
markets and we are making efforts to find new markets forour products. In response to an increasingly challenging
market brought about by the adverse effects of foreign
currency fluctuations, we are strengthening ourcooperation with overseas sales subsidiaries and affiliatecompanies, are building up a business base that can copewith appreciation of the yen, and are making strong
efforts in marketing activities.
In the Pharmaceutical business, we will offer a wider
variety of generic drugs.
In injectables, we will market high-quality
pharmaceuticals led by distinctive drugs such as
double-bag antibiotic kit (liquid-and-powder) drugs,
pre-filled syringe pharmaceuticals, and plastic ampoule
medicines. In oral drugs, we will largely increase the numberof products to be developed. At the same time, we will
actively promote cooperative development with othercompanies in order to improve the efficiency of productdevelopment and fortify contract manufacturing. We will
also continue with the development of new dosage forms ofdrugs in response to demand for medicines that are easy to
swallow. In terms of production, we are taking steps to11

expand contract manufacturing and establish a framework
for the manufacture of high-quality generic drugs throughthe completion last year of a new facility for contract
manufacturing of oral drugs and a packaging facility. In the
newly entered field of external drugs, which consists mainlyof transdermal absorption preparations, the Company will
actively proceed with development in-house as well as
cooperative development, and also expand the contract
manufacturing business. For pharmaceuticals such as
nutritional infusions, electrolyte infusions, biosimilar
gene-spliced erythropoietin, artificial blood, and drugdelivery systems, we aim to offer these on the market as
early as possible. We will also continue to actively develop
injectables (including kit preparations), oral drugs, andexternal drugs. We are making efforts to expand ourpharmaceutical business in order to provide a wider variety
of distinctive pharmaceuticals that are required by users.
We are also striving to expand sales routes, contract
manufacturing, and product development, as well as toimprove productivity at production plants.
In the Glass & Materials business, we will makeprogress in technical innovations for glass processing in
response to pharmaceutical industry needs. We will engage
in product development focused on pharmaceuticalcontainers, and will make efforts to expand sales while
actively developing new product materials.
In the field of glass for lighting, with growing markets
for liquid crystal panels, including China, we will continue tomake efforts to expand sales for backlight glass and relatedmaterials as well as to increase profitability.

Status of Corporate Governance, etc.
1 Status of Corporate Governance(1) Basic Policies for Corporate Governance
The globalization of the economy and the advance of theborderless world have continued to rapidly and dramaticallychange the operating environment for companies in Japan.
Serious management risks continue to grow and have become
real threats to the continuity of companies as numerous
deplorable events have occurred in recent years, reflecting
these changes in the business environment.
In order to respond to these rapid changes in theoperating environment, strengthening the management control
systems in consideration of various stakeholders has become
both necessary and indispensable.
The Company has been working to put its business on asound footing, increase efficiencies, strengthen management
control systems across its business units, positioning corporate
governance as a key management issue from the perspectiveof corporate social responsibility.

(2) Status of the Company’s Governance Bodies
and Internal Control Systems(1) Basic Explanation of the Company’s Governance
BodiesIn compliance with Japan’s Companies Act, the Nipro Group
has the following bodies in place, in addition to the Meeting of
Shareholders and Directors, the Board of Directors, Auditors,
the Board of Auditors and Accounting Auditor.
The management control systems that relate to
management decision-making, execution and supervision
basically operate through the Board of Directors and the
Auditors. This entails management control systems thatoversee autonomous corporate business divisions. The
systems endeavor to ensure clear assignment of responsibilities
and to reinforce systems of control.
(2) Overview of the Company’s Governance Bodies andInternal Control Systems
Meeting of Shareholders
Election

Accounting
Auditor(Auditors)
Board ofAuditors(Directors)
Board ofDirectors

Committees

Decision-making
Accounting
Audit

Operational
Audit

Supervisionof Directors’
executionof duties

Directorwithresponsibility
for operation

Division General Manager,
Manager, Assistant Manager, etc.

Management Risk Control Committee

Third Party (i.e. lawyer, accountant)President(3) Status of the Internal Control Systems
The Company’s basic policy for internal control systems, as
stipulated in Article 362, Paragraph 5, of the Companies Act,was approved at the Board of Directors meeting convened on
April 29, 2006, and implemented from May 1st of the same year.
The Company endeavors to establish the business units as thefoundation of the internal control systems of the entire Group. The
Company’s directors and statutory auditors, as well as representatives ofeach of the major companies of the group, hold a Group management
meeting on a regular monthly basis to report on the progress of business
operations, decide important operating matters, and deliberate on
pending matters. To build awareness of and compliance with the laws,
regulations, and corporate ethics among executives and employees, theCompany implements appropriate training and education programs
using company newsletters, anonymous whistleblower systems, andarchiving of handbooks on internal company networks. These
internal control systems, which are aimed at the executives andemployees of each company in the Group, are operated as aconsistent management mechanism through mutual cooperation.
(4) Status of Internal Auditing and Audits by Statutory Auditors
The Company conducts audits of accounting, procedures, and otheroperations based on internal audit protocols through the Auditing
Section, which serves as the internal audit organization for the Company.
Aside from the two full-time employees at the Auditing
Section, employees are dispatched as necessary from theHead Office Management Division or other divisions to carry out
inspections timely, smoothly and efficiently.
In regards to implementation of specific audit operations, theCompany establishes audit policies and audit plans, based on which,audits are conducted as well as endeavoring to ensure smoothaccounting audits and audits by statutory auditors through mutual
cooperation of the statutory auditors and accounting auditors.
For audits by statutory auditors, in accordance with theauditing policy and the division of labor as agreed upon by the
Board of Auditors, each statutory auditor attends important
meetings, including Board of Directors meetings, and receives
reports from Directors and employees, in addition to inspecting
important documents and undertaking other auditing duties. The
statutory auditors hold Board of Auditors Meetings regularly, or asnecessary, in order to exchange views and hold discussions. At
present, two of the three Auditors are external auditors, as
stipulated by Article 2, Paragraph 16 of the Companies Act.
(5) Status of Accounting Audits
Name of Accounting Audit Company: Osaka Audit Corporation
Name of Certified Public Accountants conducting Audit
Operations: Yoshitsugu Hashimoto, Kouichi Aki, Kazuhiro Bando.
Support Staff for Audit Operations:Certified Public Accountants: 12 people
Assistant Certified Public Accountant: 1 person
Other: 2 people(6) Personal, Capital, Transactional or other Interests
between the Company and External Auditors
There are no particular interests, vested or otherwise, between
the Company and the External Auditors.
(7) Status of the Risk Management System
The Company has established risk management regulations
and a system for managing business risk and other individual
risks in order to recognize and evaluate in an appropriate andcomprehensive manner risks that could have a material impact
on business operations. In order to effect management acrossall companies in the Group, the Company has established aManagement Risk Control Committee and works continuously
to further strengthen the system for promoting management ofbusiness risk. Furthermore, the Company has established a12

Status of Corporate Governance, etc.
Rewards and Punishments Committee, chaired by the President,
which endeavors to ensure the soundness of business operations
through the appropriate handling of rewards and punishments.
(8) Details of Directors’ Remuneration
Remuneration Paid to Directors: ¥96 million (internal directors:¥96 million)
Remuneration Paid to Auditors: ¥8 million (including ¥4 million tointernal corporate auditors, and ¥3 million to external auditors.)(9) Provisions in the Articles of Incorporation related to
the Fixed Number of the Directors
The Company’s Articles of Incorporation stipulate that the
number of directors shall be 30 persons or less.
(10) Conditions for the Election of Directors
The Company’s Articles of Incorporation stipulate that
resolutions for election of directors must be carried by amajority of votes at a General Shareholders Meeting attended
by shareholders entitled to execute one-third or more ofshareholder voting rights. Furthermore, the Articles ofIncorporation stipulate that resolutions for election of directors
shall not be carried by accumulative votes.
(11) Provisions for Resolution by Board of Directors Meetingof Matters for Resolution at General Shareholders Meetings(i) The Company’s Articles of Incorporation, pursuant to Article
165, Paragraph 2, of the Companies Act, provide that acquisitionof own shares by Market Transactions, as stipulated in
Paragraph 1 of the same Article, may be prescribed by resolutionof a Board of Directors meeting in order to make possible theexecution of an expeditious funding policy.
(ii) The Company’s Articles of Incorporation provide for distribution ofInterim Dividends, as stipulated in Article 454, Paragraph 5, of theCompanies Act, by resolution of the Board of Directors toshareholders, or pledgees of registered shares, who are recorded inor listed on the final Shareholders Register as of September 30th ofeach year, in order to smoothly implement dividend policies.
(iii) The Company’s Articles of Incorporation provide for exemption of
liability of directors and auditors (including persons who were directors
or auditors) who have failed in their duties, to the extent which such
exemption may be given pursuant to the law and ordinances, byresolution of the Board of Directors, as stipulated in Article 426,
Paragraph 1, of the Companies Act, in order to make possible thefull execution of the roles expected of directors and auditors.
(12) Conditions for Special Resolutions at General
Shareholders Meetings
The Company’s Articles of Incorporation provide that special
resolutions at General Shareholders Meetings shall be carried by
two-thirds or more of votes at a General Shareholders Meeting
attended by shareholders who are entitled to exercise one-thirdor more of shareholder voting rights, as stipulated by Article 309,
Paragraph 2, of the Companies Act, to contribute to theharmonious management of General Shareholders Meetings.

2 Details, etc., of Auditors Remuneration(1) Details of Remuneration for Audit Certified Public
Accountants, etc.
Millions of yen
2009
2008
Classification Remuneration for Audit Remuneration for
Remuneration for Remuneration for
Certification Services Non-Audit Services Audit Certification Non-Audit Services
Services
Reporting Companies
—
—
¥ 34
—
Consolidated
—
—
12
—
Total
—
—
¥ 46
—

13

Thousands of U.S. dollars
2009
2008
Classification Remuneration for Audit Remuneration for
Remuneration for Remuneration for
Certification Services Non-Audit Services Audit Certification Non-Audit Services
Services
Reporting Companies
—
—
$ 346
—
Consolidated
—
—
122
—
Total
—
—
$ 468
—

(2) Details of Other Important Remuneration
There were no applicable items.
(3) Details of Non-Audit Services Provided by Audit
Certified Public Accountants, etc., to Reporting
Companies
There were no applicable items.
(4) Decision-Making Policy for Audit Remuneration
There were no applicable items, however, remuneration was decidedin consideration of scale, specialty, number of audit days, etc.

3 Dividend Policy
The Company considers providing stockholders with a portionof company profits to be a very important aspect ofmanagement policy. This basic stance is based on the idea thata company is an organization composed of three parts:
stockholders, employees, and management; and that the
profits from business operations should be properly distributed
amongst these three components.
As our basic approach, we have been aiming at a 50%
payout ratio on a unitary basis.
The Company’s basic policy is to distribute dividends ofretained earnings twice a year, with an interim dividend and a
year-end dividend. The interim dividend is determined by theboard of directors with the year-end dividend determined at thegeneral meeting of stockholders.
Our dividends for the present year have been issued at a
rate of ¥32 per share (comprised of an interim dividend of ¥32).
Because provision of a year-end dividend would make thedividend payout ratio significantly exceed 50%, there will be noyear-end dividend.
The Company believes that retained earnings are essential
for expanding our business base and for the long-term
development of our business. The Company will actively invest
these funds in the marketing, production, and research anddevelopment divisions, in order to ensure stable earnings andsustainable growth in the future.
Through a decision of the board of directors, the provisionof an interim dividend was made possible in the articles ofincorporation and September 30 of every year was establishedas the record date.
The dividends of retained earnings with record dates in thecurrent business year are as described below.
Date of
Resolution
November 11, 2008
Date of
Resolution
November 11, 2008

Amount of dividends
Millions of yen¥ 2,030

Dividend per share
Yen¥ 32.00

Amount of dividends
Thousands of U.S. dollars$ 20,666

Dividend per share
U.S. dollars$ 0.33

Board of Directors and Auditors
President

Minoru Sano
Senior Managing Director

Managing Director

Shigeki Tanaka

Yoshihiko Sano

Manufacturing technology /R&D division

Domestic division

Managing Director

Managing Director

Makoto Sato

Kazuo Wakatsuki

Pharmaceutical business

International division

Directors

Masato Naganami

Akihiko Yamabe

Glass & materials development division

Accounting division

Noriaki Watanabe

Kiyotaka Yoshioka

International division

Domestic division

Toshiaki Masuda

Mitsutaka Ueda

Domestic division/
Research & development laboratory

Domestic division

Tsuyoshi Yamazaki

Yusuke Kofuku
International divisionInternational division

Masanobu Iwasa

Toshiya Kai
Pharmaceutical research center

Medical promotion department

Hideo Okamoto

Kyoetu Kobayashi
Manufacturing technology/R&D division

Glass & materials development division

Yozo Sawada

Kimihito Minoura
Corporate planning & coordination division

Intellectual property department

Hideto Nakamura
Human resources/general affairs division

Standing Statutory Auditor

Takayuki Nomiya
Statutory Auditor

Statutory Auditor

Masamichi Wada

Kiyoshi Kase

14

Financial Review
this business increased by 1.7% from the previous period to¥113.0 billion (US$1,150.1 million).
PharmaceuticalIn this business segment, we advanced the sales ofcharacteristics drugs and medicines, thanks to the policies forthe popularization of generic products in the aging of
the population and increase of the establishments introducing
DPC. As a result, we steadily raised the sales of dialysis-related
products such as powdered dialysate solutions and kit productof substitution fluid for hemofiltration and hemodiafiltration, as
well as liquid-and-powder double-bag kits, pre-filled syringe kits
and such oral drug as orally disintegrating tablets andextended-release tablets. In the contract manufacturingbusiness, we built up the structure which enabled to stably
supply the high-quality products, by means of expanding
the production capacity such as a new plant and a packaging
plant for contract manufacture of oral drug, as the largest
contract manufacturer of pharmaceutical products in Japan.
As a result, net sales of this business increased 8.1%
from the previous period to ¥52.7 billion (US$536.8 million).
Glass & Materials
In the filed of glass for pharmaceutical purposes, the sales ofpill bottle increased solidly, though the sales of glass tubes forampoule decreased. In the field of other glass & materials
products, the total sales decreased, as the sales of lighting
glass for LCD and automobile-related decreased sharply andthe sales of glass for vacuum bottle showed a slight decline, in
addition to the lagging sales of consumer goods. As a result,net sales of this business decreased 16.5% from the previous
period to ¥9.6 billion (US$97.3 million).
Other
Net sales of other segment, consisting mainly of sales ofmachine for manufacture of medical equipment and real estate
rentals, decreased 17.0% from the previous period to ¥1.0
billion (US$7.1 million).

Overview
In the fiscal year ended March 31, 2009, world economy had
slow downed yet again due to turmoil in the financial markets of
the U.S., generally undergoing the rising specter of recession
while violent ups and downs in oil and raw material prices andimpact from strong yen rate in the Japanese economy.
Under such circumstance, our group has continuously
promoted to develop innovative medical equipment in the fields
of artificial organs and regenerative medicine as well as madeeffort to injection drug and oral drug business to grow ourbusiness and improve the performance.

Consolidated Business Results
In the fiscal year ended March 31, 2009, consolidated net sales
amounted to ¥175.9 billion (US$1,791.2 million), an increase of
2.2% compared with the previous fiscal year.

Net Sales by Business Segment
Medical Equipment
In the domestic business of this business segment, drug prices
and official reimbursement price of specific-insurance medical
materials were drastically driven down as the medical fee
scheme was revised last April. Additionally, our businessenvironment became even more severe, because increasing
number of hospitals introduced Diagnostic Procedure
Combination system (hereafter called as “DPC”) which is
a comprehensive reimbursement system of medical cost for
acute stage inpatient, and the material price and delivery costalso rose. Under such circumstances, we showed consistent
growth in each field of dialysis-related products, injection andinfusion-related products, diabetes-related-products,
vascular-related products by means of more active promotionof sales, improvement in sales efficiency and expansion in
lineup of core products.
In the International business, we were severely affectedby the strength of the yen against the U.S. dollar and Euroowing to the worldwide financial crisis started with American
sub-prime loans. Under such circumstances, the influence of
sharp exchange rate fluctuations was inevitable and our sales
amount hit the wall, although we raised the prices and tookcost-cutting measures. We, however, rose at a double-digit
pace selling quantity of the core products, such as dialyzer,
blood circuit, dialysis machine, AVF (Arterial Venous Fistula)needle and diabetes-related-products. As a result, net sales of

Net Sales(Millions of yen)

Cost of Sales
The cost of sales increased 1.0% compared with the previous
fiscal year to ¥124.4 billion (US$1,266.4 million). The main
reason for the increase was the increase of sales andproduction of pharmaceutical products. The ratio of cost of
sales decreased 0.8 percentage point compared with theprevious fiscal year to 70.7%, mainly due to the improvement of
productivity of the factories in the Medical Equipment andPharmaceutical segment. As a result, gross profit increased
5.2% compared with the previous fiscal year to ¥51.5 billion(US$524.8 million).

Operating Income(Millions of yen)

15,000250,000
200,000 192,320 206,801
184,363

12,000172,113 175,945

150,000

9,000

100,000

6,000

50,0003,000

12,332

13,053

13,677

14,775

10,404

Income Before Income Taxes(Millions of yen)
and Minority Interests
20,00016,77615,00010,0002005 2006 2007 2008 2009

15

9,061

8,260

9,379

5,000
0

0

0

8,660

2005 2006 2007 2008 20092005 2006 2007 2008 2009

Selling, General and Administrative Expenses¥0.5 billion (US$5.5 million) resulting from new manufacturing
project of pharmaceutical kit products.

Selling, general and administrative expenses increased 4.1%
compared with the previous fiscal year to ¥36.8 billion(US$374.4 million), mainly due to the increase of personnel
costs in overseas subsidiaries and freight charges.

Income before Income Taxes and Minority Interests
As a result of the factors outlined above, income before income
taxes and minority interests increased 13.5% compared withthe previous fiscal year to ¥9.4 billion (US$95.5 million).

Operating Income
As a result of the above-mentioned factors, operating income
rose 8.0% to ¥14.8 billion (US$150.4 million). The ratio of
operating income to net sales improved 0.5 percentage point to
8.4%.

Net Sales and Operating Income byGeographic Segment
In Japan net sales decreased 0.9% compared with the previous
fiscal year to ¥134.3 billion (US$1,367.5 million) due tothe strong yen rate against U.S. dollar and Euro on export
business. Operating income also decreased 6.9% comparedwith the previous fiscal year to ¥20.5 billion (US$208.8 million),owing to the impact of exchange rate and increase of depreciation
amount at factories in the medical equipment business.
In America, net sales rose 1.9% compared withthe previous fiscal year to ¥21.3 billion (US$216.9 million), due
to increase in sales of dialysis-related and cardiopulmonary
products. However, this segment recorded an operating loss of¥0.6 billion (US$6.0 million) in the fiscal year under review,
because the U.S. subsidiary which sells insulin pumps madea loss, although the Brazilian manufacturing subsidiary improved
its profitability.
In Europe, net sales rose 35.5% compared withthe previous fiscal year to ¥12.4 billion (US$126.6 million) due toincrease in sales of dialysis-related products. However, thissegment recorded an operating loss of ¥0.03 billion (US$0.3
million), as a result of rise of unit price for purchase, affected by
the change of exchange rate.
In Asia, net sales rose 22.7% compared withthe previous fiscal year to ¥7.9 billion (US$80.2 million), due toincrease in sales of dialysis-related and cardiopulmonary
products at sales subsidiaries. Operating income rose 48.0%
compared with the previous fiscal year to ¥1.4 billion (US$14.4
million), mainly due to the improvement of profitability at
the manufacturing subsidiary in Thailand.

Operating Income by Business Segment
Medical Equipment
Operating income of Medical Equipment business rose 2.4% to¥16.2 billion (US$165.0 million), resulting from the increase ofsales quantity mainly of dialysis-related products andimprovement of manufacturing profitability at factories, eventhough there were the influences from strong yen rate against
U.S. dollar and Euro on export business and revision ofreimbursement price on domestic business.
Pharmaceutical
Operating income of Pharmaceutical business increased 24.8%
to ¥4.1 billion (US$41.6 million), resulting from the increase ofsales mainly of kit preparations and improvement of
manufacturing profitability at factories.
Glass & Materials
Operating income of Glass & Materials business decreased
6.2% compared with the previous fiscal year to ¥1.8 billion(US$18.0 million), resulting from the decrease of sales of glass
for lighting.
Other
Operating income of “Other” decreased 68.5% compared withthe previous fiscal year to ¥0.004 billion (US$0.04 million) due
to decrease in net sales.
Elimination/Corporate
The unallocated corporate costs, which consisted mainly of
the R&D-related expenses and headquarters administration
expenses, decreased 0.5% compared with the previous fiscal
year to ¥7.3 billion (U$74.2 million) mainly due to the decreaseof R&D costs.

Other Income (Expense)
We recorded other expenses of ¥5.4 billion (US$54.9 million),
which was almost at the same level as the previous fiscal year.
Major components of other expenses are exchange loss of ¥3.7
billion (US$38.1 million) and abnormal manufacturing cost of

Net Income(Millions of yen)

10,000(Millions of yen)

35,000
8,555

8,000

33,14230,00020,000

4,519

4,513

4,454

4,531

2,000

15,00020,87423,09325,90016,312

2005 2006 2007 2008 2009

35,000(Millions of yen)349,302338,741 336,660
330,641

293,749

25,00020,00015,00010,00010,000

5,000

5,000

0

0

Total Assets
30,00025,000

6,000
4,000

Capital Expenditures02005 2006 2007 2008 20092005 2006 2007 2008 200916

Financial Review
Financial Position

Basic Policy on Distribution of Profits

Total net assets as of March 31, 2009 stood at ¥330.6 billion(US$3,366.0 million), a decrease of 5.3% from the end of
the previous fiscal year. Current assets decreased 1.2% fromthe end of the previous fiscal year to ¥160.9 billion(US$1,637.6 million), due mainly to the decrease in trade notes
and accounts receivable. Property, plant and equipment, net ofaccumulated depreciation, increased 6.7% from the end of
the previous fiscal year to ¥126.7 billion (US$1,290.2 million)
as a result of active investments in manufacturing facilities.
Capital investments in property, plant and equipment totaled¥32.7 billion (US$332.5 million). By business segment, capital
investments amounted to ¥ 11.3 billion (US$115.1 million) in
the Medical Equipment and ¥20.4 billion (US$ 207.6 million) in
the Pharmaceutical business. Investment and other assets
decreased 36.5% to ¥43.0 billion (US$438.1 million), due
mainly to the decrease in investment securities affected by
the sluggish stock market.
Current liabilities increased 5.5% from the end of
the previous fiscal year to ¥114.8 billion (US$1,168.6 million),
mainly due to the increase in notes and accounts payable forplant and equipment. Long-term liabilities decreased 1.4% fromthe end of the previous fiscal year to ¥119.3 billion (US$1,214.3
million), owing to the decrease in deferred income taxes.
Total net assets decreased 19.2% from the end of
the previous fiscal year to ¥96.6 billion (US$983.0 million), due
to the decrease in unrealized gain of available-for-sale securities.

Our policy is that 50% of non-consolidated net income is to be
distributed to shareholders. Employees’ bonuses are determinedaccording to the business performance of the division to which
the employees belong. Bonuses for directors and statutory auditors
are determined on the basis of corporate business performance.
Retained earnings are invested in sales and production
facilities as well as in R&D, with a view to establishing the firmmanagement basis and long-term business development,
which in turn should ensure stable profits in the future.

Risk Factors
The following are risks that may have an effect on the Nipro
Group’s results of operations and/or its financial condition.
The items concerned were determined as at March 31, 2009.

(1) Risks Related to Product Safety
The Nipro Group brings all of its capabilities to bear in securing
product safety in the design, development and manufacturing of
medical equipment and pharmaceutical products. There are still
the risks, however, that accidental defects or side-effects could
result in damages to a third party and our being sued for liability.
To cover these risks, we therefore maintain generalliability and product liability insurance. In the unlikely event ofa successful claim in excess of the insurance coverage,
however, there could be a material adverse effect on our resultsof operations and financial condition.

Cash Flow(2) Risks Related to Supplier Concentration
The Nipro Group procures materials and parts for its operations
from a large number of suppliers. Some key materials or parts
may be obtained only from a single supplier or a limited groupof suppliers. If circumstances at any of these suppliers make it
impossible for us to acquire a sufficient quantity of materials orparts to meet our production needs in a timely andcost-effective manner, there could be a material adverse effecton our results of operations and financial condition.

Net cash provided by operating activities increased 94.8%
compared with the previous fiscal year to ¥18.9 billion(US$191.9 million), mainly because payment of income taxes
decreased. Net cash used in investing activities amounted to¥21.2 billion (US$215.7 million), mainly for purchase ofproperty, plant and equipment. Net cash provided by financing
activities amounted to ¥0.8 billion (US$8.0 million).
As a result, net cash and cash equivalents decreased¥2.3 billion (US$23.5 million) compared with the end of
previous fiscal year to ¥45.4 billion (US$461.7 million).

(3) Risks Related to Changes in Government
Healthcare Policies
The business sector to which the Nipro Group belongs is
intimately connected with the healthcare system and is subject
to the regulations laid out by the government organizations,
including the National Health Insurance System and
the Pharmaceutical Affairs Law. Should circumstances arise inwhich we were unable to respond to changes inthe environment brought about by unforeseeable wholesale

Staff
Total number of employees at the end of the fiscal year underreview increased 334 compared with the end of the previous
fiscal year to 9,354. Employees in Japan increased 233 to
4,655, and the overseas employees increased 101 to 4,699.

Net Assets(Millions of yen)

120,000
90,000112,391
96,700125,651(yen)

95,0498,000

90

60,00060

30,000

30

8,617

9,048

8,807

9,020

9,354

6,000
69.4

69.6

70.2

71.4

4,000
2,000

0

2005 2006 2007 2008 2009

Number of Employees
10,000134.7

120118,1560

17

Basic Earnings Per Share
150

150,000

02005 2006 2007 2008 20092005 2006 2007 2008 2009(9) Risks Related to Exchange Rate Fluctuations

changes in the government healthcare policies, there could bea material adverse effect on our results of operations andfinancial condition.

The Nipro Group, including its overseas subsidiaries, carries out
its foreign currency transactions primarily in US dollars andeuro, but calculates financial statements for its overseas
subsidiaries using Japanese yen for the purpose of producing
consolidated financial statements. Fluctuations in exchange
rates may therefore have a material adverse effect on our
results of operations and financial condition.

(4) Risks Related to Changes in Sale Prices
The products sold by the Nipro Group include some that are, in
general, subject every two years to the effect of price reductionsin the system of payment for medical care, drug prices andreimbursement prices for medical materials and supplies.
Should measures to hold down medical costs also become
pervasive worldwide, resulting in intensified competition
between corporations and leading to prices falling to a greater
degree than anticipated, there could be a material adverse
effect on our results of operations and financial condition.

(10) Risks Related to Investment Value
The Nipro Group’s assets include investments in stocks and othersecurities. These investments have been made for purposes suchas building good business relationships with the issuers of suchsecurities, or for gathering useful information for the developmentof new products or for new business opportunities. Should
the value of these investments decline significantly owing tofluctuations in the stock market, circumstances at an issuer, ora change in the accounting methods used to deal with theseinvestments, there could be a material adverse effect on our
results of operations and financial condition.

(5) Risks Related to Changes in Prices of Raw
Materials
The products manufactured by the Nipro Group include somethat are made from petrochemical products such as plastics.
Should the cost of such raw materials rise, there could bea material adverse effect on our results of operations andfinancial condition.

(11) Risks Related to Controls on Personal Information
The Nipro Group set the strict precautions to protect
the confidential personal information that the Group possesses.
In the unforeseen events or accidents that the personal
information is leaked outside the Group, causing loss of trust or
customers, there could be a material adverse effect on its
results of operations and financial condition.

(6) Risks Related to Overseas Expansion
The Nipro Group maintains manufacturing bases and sales
offices around the world for the production and supply of its
products. Should there be unexpected revisions to legal
regulations or political or economic changes in these countries
or regions, there could be a material adverse effect on our
results of operations and financial condition.

(12) Risks Related to Litigation
On December 7, 2007, a damage suit was filed at the Tokyo
Higher Court by Naigai Co., Ltd. and Naigai Glass Kogyo Co.,
Ltd. against the Company, based on the 25th article of
the antitrust law. The claimed amount was ¥2,032 million(US$20,686 thousand). The Company is arguing, among
others, the occurrence of the damage and the correlation
between the act and the damage. Should the defense of
the Company be unsuccessful and a judgment to orderthe payment of compensation be given to the Company, there
could be a material adverse effect on our results of operations
and financial condition.

(7) Risks Related to Intellectual Property
The Nipro Group owns numerous patents and trademarks, andmaintains various proprietary rights for the products it
manufactures. Additionally, we take all possible measures toavoid infringing on the patents and proprietary rights of any
third party, and to avoid breaching any license agreements wehave concluded concerning technologies. Nevertheless, if anunanticipated claim for damages were to be made by a third
party and the defense of the Nipro Group were to be rejected,
there could be a material adverse effect on its results ofoperations and financial condition.

(13) Other Risks(8) Risks Related to Environmental Regulations

Fire, earthquake, terrorist act, war, epidemic, or other unforeseen
man-made or natural disasters affecting areas or facilities where
the Nipro Group conducts its business activities may possibly
cause a delay or interruption in production, sales, distribution, or
provision of services. Should such a delay or interruption
become extended, there could be a material adverse affect on
our results of operations and financial condition.

The Nipro Group believes it has taken adequate precautions tocomply with applicable regulations in the course of its businessactivities. Should our activities cause an unforeseen
environmental problem, however, with a claim for damages
made against us, there could be a material adverse effect on
our results of operations and financial condition.

Equity Ratio

(%)

40
30

32.9

33.2

Return on Assets

(%)

5.0

37.3
33.8
28.7

4.0

Return on Equity
8.0

3.6

3.9

3.9

4.0

6.0
4.7

3.0
4.0
2.0
10

4.2
3.7

0

0

2005 2006 2007 2008 2009

4.3

2.0

1.0

0

7.2

4.3

20

(%)

2005 2006 2007 2008 20092005 2006 2007 2008 200918

10 year summary
Nipro Corporation and its Consolidated Subsidiaries
Years ended March 31
Millions of yen

2009
Income Statement Data :Net sales .....................................................................................
Medical Equipment ........................................................ ..........
Pharmaceutical ............................................................. ..........
Glass and Materials .................................................................
Store .......................................................................................
Cost of sales ...............................................................................
Selling, general and administrative expenses ..................... ..........
Operating income .......................................................................
Medical Equipment (1) .............................................................
Pharmaceutical (1) ...................................................................
Glass and Materials (1) ............................................................
Store (1) ..................................................................................

2007

2006

¥

175,945
112,970
52,726
9,554—
124,396
36,774
14,775
16,209
4,082
1,772
—
9,379
4,531
33,142
18,1095,352¥

172,113
111,084
48,754
11,437—
123,108
35,32813,677
15,830
3,271
1,890
—
8,260
4,454
25,90015,054
6,194¥

184,363
97,30042,152
12,91930,973
132,142
39,16813,053
14,334
3,298
1,865
270
16,776
8,555
23,093
12,4704,461¥

206,801
90,86835,22011,934
67,261
149,971
44,49812,332
13,430
2,111
1,836
578
9,061
4,513
20,874
12,315
3,760¥

330,641
126,739
46,070114,796
119,285
28,66329,973
95,049¥349,302
118,81253,911
108,835
120,923
28,66329,975
118,156¥

336,660
104,882
43,128104,105
105,535
28,66329,973
125,651¥

338,741
106,195
34,579111,285
113,453
28,66329,972
112,391

134.7
—
80.0
1,979.2

¥

69.6
—
37.5
1,767.7

Income before income taxes and minority interests .............. ..........
Net income .................................................................................
Capital expenditures .......................................................... ..........
Depreciation and amortization ........................................... ..........
R&D expenses ............................................................................
Balance Sheet Data:
Total assets .................................................................................
Property, plant and equipment-net .................................... ..........
Working capital ................................................................. ..........
Current liabilities ............................................................... ..........
Long-term liabilities ........................................................... ..........
Common stock ................................................................. ..........
Capital surplus .................................................................. ..........
Net Assets (2) .................................................................. ..........

2008

Yen

Per share data :Basic earnings (3) .............................................................. ..........
Diluted earnings (3) ............................................................ ..........
Cash dividends ................................................................. ..........
Equity ..........................................................................................

¥

71.4
—
32.0
1,498.5

¥

70.2
—
37.5
1,861.8¥

Number of common shares issued ........................................ ..........
Number of employees ........................................................... ..........

63,878,505
9,354

63,878,505
9,020

63,878,505
8,807

63,878,505
9,048

Selected Data and Ratios :Equity ratio (4) (%) ............................................................ ..........
Return on assets (4) (%) ................................................... ..........
Return on equity (4) (%) .................................................... ..........
Price earnings ratio (4) (times) .....................................................

28.7
4.3
4.2
21.5

33.8
4.0
3.7
24.8

37.3
3.9
7.2
17.1

33.2
3.9
4.3
26.0

Note :(1) Operating income at the operating segment level is not adjusted for intra-segment transactions. See note 13 to the consolidated financial statements.
(2) Effective April 1, 2006, the Company adopted a new accounting standard for presentation of net assets in the balance sheet issued by the Accounting Standard
Board of Japan. In the new accounting standard, net assets refer to the sum of total shareholders’ equity, total valuation and translation adjustments andothers, and minority interests. Minority interests, however, have not been included in net assets above to conform to the prior years’ presentation.
(3) Effective April 1, 2002, the Company adopted a new accounting standard for earnings per share of common stock issued by the Accounting Standards Boardof Japan. Basic earnings and diluted earnings per share for the year ended March 31, 2003 and thereafter are computed in accrodance with the new standard.
Basic earnings and diluted per share for the prior years are not translated to reflect the new standard’s provision, based on the weighted average number ofoutstanding shares for the period.

19

Thousands of
U.S. dollars(Note 1)Millions of yen

2005

2004

2003

2002

2001

2000

2009

¥

192,320
82,504
26,207
11,667
70,841140,072
41,844
10,404
11,039
2,261
1,889
115
8,660
4,519
16,312
10,266
3,422¥

188,700
78,72725,33911,891
71,357137,153
38,99012,557
12,117
2,471
1,819
420
8,044
4,216
14,500
9,819
3,074

¥

180,370
76,00921,97911,06469,560128,776
36,695
14,89914,175
1,981
1,777
1,109
8,781
5,078
20,775
8,767
2,328

¥

171,217
77,572
15,946
11,23464,764122,092
34,69014,43515,016
1,104
1,806
1,037
11,617
5,842
17,166
7,215
2,553

¥

152,072
66,413
14,12011,78456,882
110,608
31,735
9,729
11,913
844
1,773
20
6,641
3,401
14,295
6,898
3,048

¥

143,700
65,71813,47812,021
51,034
104,734
30,344
8,622
10,422
516
1,758
637
5,930
2,621
8,463
7,124
2,278

$

1,791,153
1,150,056
536,761
97,261—
1,266,375
374,366
150,412
165,01141,55618,039—95,48046,126337,392
184,353
54,484¥

293,749
98,78839,12396,242
99,19828,66329,972
96,700¥279,701
94,00528,57096,36486,932
28,66329,972
94,711¥

252,848
91,14727,542
88,88978,65728,66329,972
83,533¥

245,403
81,029
9,792
105,764
61,952
23,11324,43576,099¥228,918
72,06135,77074,99583,26022,56323,886
69,196¥

217,455
64,49752,06575,00875,58522,56323,88665,368$3,365,988
1,290,227
469,001
1,168,645
1,214,344
291,795
305,131967,617
U.S. dollars(Note 1)

104.4
92.4
47.0
1,343.7

¥

60.8
54.3
31.0
1,236.6

¥

46.9
42.1
34.5
1,168.2

$

0.73
—
0.33
15.26

Yen

¥

69.4
—
38.5
1,519.6

¥

64.9
—
30.5
1,487.5

¥

84.3
78.5
32.0
1,310.7¥

63,878,505
8,617

63,878,505
8,132

63,878,505
8,029

56,670,149
7,835

55,956,987
6,818

55,956,987
6,636

32.9
3.6
4.7
25.6

33.9
4.7
4.7
24.1

33.0
6.0
6.4
21.5

31.0
6.1
8.0
17.4

30.2
4.4
5.1
16.5

30.1
4.1
4.0
18.6

(4) Equity ratio is the ratio of the sum of total shareholders’ equity and total valuation and translation adjustments and others to total assets at the period end.
Return on assets is the ratio of operating income for the period to average of total assets during the period. Return on equity is the ratio of net income forthe period to average of the sum of total shareholders’ equity and total valuation and translation adjustments and others during the period. Price earnings ratio is
the ratio of the closing price of the Company’s shares listed on the First Section of the Tokyo Stock Exchange on the last trading day in March of each year tobasic earnings per share.

20

Consolidated Balance Sheets
Nipro Corporation and its Consolidated Subsidiaries
As of March 31,2009 and 2008
Thousands of U.S. dollars(Note 1)Millions of yen

2009

2009

2008

AssetsCurrent assets :Cash and cash equivalents ........................................... ................. ¥45,352Time deposits (over three months) ................................ .................

3,848

1,812

39,173

Trade notes and accounts receivable (Note 5 and 11) ....................

50,94753,507

518,650

Allowance for doubtful receivables ................................ .................

(410)

(474)

(4,174)Inventories (Note 3) ....................................................... .................

51,11448,077

520,350

Deferred income taxes (Note 4) ..................................... .................

2,847

2,902

28,983

Other current assets ..................................................... .................

7,168

9,265

72,972................................................. .................

160,866

162,746

1,637,646

Land ............................................................................. .................

19,45919,413

198,096

Buildings and structures ................................................ .................

101,361

95,005

1,031,874

Machinery and equipment ............................................. .................

131,332

125,897

1,336,985

Total current assets¥

47,657$

461,692

Property, plant and equipment (Note 5 and 6) :............................................... .................

16,848

11,220171,516

269,000

251,535

2,738,471

Accumulated depreciation ............................................. .................

(142,261)(132,723)(1,448,244)

Property, plant and equipment-net .......................... .................

126,739

118,8121,290,227

Construction in progress

Investments and other assets :Investment in unconsolidated subsidiaries
and an affiliate accounted for by the equity
method ..................................................................... .................

3,667

3,397

37,331

Investment securities (Note 7) ........................................................

33,20356,528338,013

Lease deposits ..............................................................................

2,030

2,266

20,666

Deferred income taxes (Note 4) ......................................................

141

159

1,435

Other ............................................................................ .................

3,995

5,394

40,670Total investments and other assets .......................... .................

43,03667,744438,115

Total.....................................................................................................

The accompanying notes are an integral part of these statements.

21¥

330,641¥

349,302$3,365,988

Thousands of U.S. dollars(Note 1)Millions of yen

2009
Liabilities and net assets
Current liabilities:
Short-term bank loans (Note 5 and 9) ............................................... ¥Current portion of long-term debt (Note 5 and 9) ..............................
Trade notes and accounts payable ..................................................
Accrued income taxes .....................................................................
Accrued expenses ...........................................................................
Allowance for loss on clearance of business .....................................
Notes and accounts payable for plant and equipment ......................
Other current liabilities ......................................................................
Total current liabilities .................................................................
Long-term liabilities :Long-term debt (Note 5 and 9) .........................................................
Accrued pension and severance liabilities (Note 10) ..........................
Deferred income taxes (Note 4) ........................................................
Other long-term liabilities ..................................................................
Total long-term liabilities .............................................................
Commitments and contingent liabilities (Note 11)
Net Assets (Notes 12):
Common stock ................................................................................
Authorized : 200,000,000 shares
Issued : 63,878,505 shares
Capital surplus .................................................................................
Retained earnings ............................................................................
Less cost of common shares of treasury stock .................................
(447,874 shares in 2009 and 415,037 shares in 2008)
Total shareholders’ equity ...........................................................
Unrealized gain on available-for-sale securities .................................
Foreign currency translation adjustments .........................................
Total valuation and translation adjustments and others ...................
Minority interests ..............................................................................
Total net assets ..........................................................................
.....................................................................................................
Total¥

30,48823,832
28,323
2,281
8,288
1,955
18,172
1,457
114,796

2009

2008

¥

28,22130,16430,009
2,226
8,811
1,955
6,879
570
108,835$

310,374
242,614
288,334
23,221
84,373
19,902
184,994
14,833
1,168,645

114,172
1,889
913
2,311
119,285

106,705
2,129
9,833
2,256
120,923

1,162,293
19,2309,295
23,526
1,214,344

28,663

28,663291,795

29,97341,458(850)

29,97539,477(795)

305,131422,050(8,653)99,244
4,998(9,193)(4,195)97,32018,948
1,888
20,836
1,388
119,544349,3021,010,323
50,881(93,587)(42,706)

1,511
96,560330,641¥$

15,382
982,999
3,365,988

The accompanying notes are an integral part of these statements.

22

Consolidated Statements of Income
Nipro Corporation and its Consolidated Subsidiaries
For the years ended March 31, 2009 and 2008
Thousands of U.S. dollars(Note 1)Millions of yen

2009

2008

Net sales .............................................................................................. ¥Cost of sales .......................................................................................
Gross profit ...................................................................................

175,945
124,396
51,549Selling, general and administrative expenses (Note 14 and 15)
Operating income ..........................................................................

36,774
14,77535,32813,677374,366
150,412

Other income (expenses):
Interest and dividend income .........................................................
Interest expense (Note 9) ...............................................................

1,178(2,376)

1,100(1,951)

11,992(24,188)

Loss on sale and disposal of property,
plant and equipment - net ..........................................................
Exchange gain (loss) ......................................................................

(14)(3,746)(620)(3,169)(143)(38,135)

88
(163)
(538)
(269)
(253)

16
—
(167)
(139)

896
(1,659)(5,477)(2,738)(2,576)¥

172,113
123,108
49,005$

1,791,153
1,266,375
524,778

Equity in profit of an affiliated company ...........................................
Loss on impairment of fixed assets (Note 6) ...................................
Abnormal manufacturing cost ........................................................
Loss on disposal of inventories ......................................................
Loss on devaluation of inventories...................................................
Other income (loss)-net ..................................................................
Income before income taxes and minority interests

697
9,379

8,260

7,096
95,480

Income taxes (Note 4) :Current ..........................................................................................
Deferred ........................................................................................

4,037
629

3,758
37

41,098
6,403

182

11

1,853

Minority interests in income (loss) ofconsolidated subsidiaries
Net income .................................................................................... ¥

—
(487)

4,531

¥

4,454

Amounts per common share :Basic earnings ...............................................................................
Diluted earnings .............................................................................
Cash dividends ..............................................................................
The accompanying notes are an integral part of these statements.

71.4
—
32.0

$

46,126

U.S. dollars(Note 1)

Yen

23

2009

70.2
—
37.5

0.73
—
0.33

Consolidated Statements of Changes in Net Assets
Nipro Corporation and its Consolidated Subsidiaries
For the years ended March 31, 2009 and 2008
Thousands
Outstanding
number ofshares ofcommonstockMillions of yen
Unrealized

Commonstock

CapitalsurplusRetainedearnings

Balance at March 31, 2007 ..... 63,485 ¥ 28,663 ¥ 29,973 ¥ 39,149
Net income ...........................
4,454(4,126)
Cash dividends ....................
(28)
Purchase of treasury stock ....
6
Disposal of treasury stock ....
2
Other net change
during the year .................
Balance at March 31, 2008 .... 63,463
28,663 29,975 39,477
Net income ........................
4,531
Increase (decrease)in retained earnings
due to inclusionof new subsidiaries in
consolidation ....................
84(2,634)
Cash dividends .....................
(42)
Purchase of treasury stock ....
(2)
Disposal of treasury stock ...
10
Other net change
during the year .................
Balance at March 31, 2009 ..... 63,431 ¥ 28,663 ¥ 29,973 ¥ 41,458

Balance at March 31, 2008 .....
Net income ...........................
Increase (decrease)in retained earnings
due to inclusionof new subsidiaries in
consolidation ...................
Cash dividends ....................
Purchase of treasury stock ...
Disposal of treasury stock...
Other net change
during the year ................
Balance at March 31, 2009 .....

gain onTotal
shareholders’ available-for-saleequitysecurities

Foreigncurrencytranslation
adjustments

Total valuationandtranslation
adjustments
and others¥ (741) ¥ 97,044 ¥ 29,884 ¥ (1,277) ¥ 28,607
4,454(4,126)
(65)
(65)
11

13

(795)

97,320
4,531

—

(73)
18

Minority
interests

Total
net assets¥ 1,369 ¥ 127,020
4,454(4,126)(65)
13(10,936)
18,948

3,165
1,888

(7,771)
20,83619
1,388(7,752)
119,5444,531

84(2,634)(73)

84(2,634)
(73)

16

16

(24,908)— (13,950) (11,081) (25,031)
123¥ (850) ¥ 99,244 ¥ 4,998 ¥ (9,193) ¥ (4,195) ¥ 1,511 ¥ 96,560

Thousands of U.S. dollars (Note 1)

Thousands
Outstanding
number ofshares ofcommonstock

Treasurystock

Commonstock

CapitalsurplusRetained Treasury
earnings
stock

Total
shareholders’equityUnrealized
Total valuation
Foreign
gain onandcurrency
availabletranslation Minoritytranslation-for-saleadjustments interests
securities adjustments
and others

Total
net assets

63,463 $ 291,795 $ 305,151 $ 401,883 $ (8,093) $ 990,736 $192,895 $ 19,220 $ 212,115 $ 14,130 $1,216,981
46,126
46,126
46,126855(26,814)
(42)
10

(20)

(743)
183

855
(26,814)(743)

855(26,814)
(743)

163

163

— (142,014) (112,807) (254,821) 1,252 (253,569)
63,431 $ 291,795 $ 305,131 $ 422,050 $ (8,653) $1,010,323 $ 50,881 $ (93,587) $ (42,706) $ 15,382 $ 982,999

The accompanying notes are an integral part of these statements.

24Consolidated Statements of Cash Flows
Nipro Corporation and its Consolidated Subsidiaries
For the years ended March 31, 2009 and 2008
Thousands of U.S. dollars(Note 1)Millions of yen

2009
Operating activities :Net income ........................................................................ ................ ¥Adjustments to reconcile net income to net cash provided operating activities:
Depreciation and amortization ........................................ ................
Loss on impairment of fixed assets ................................ ................
Equity in loss (profit) of an affiliated company .................. ................
Allowance for doubtful receivables .................................................
Provision for deferred taxes ............................................................
Exchange loss (gain) ...................................................... ................
Loss on devaluation of marketable securities .................. ................
Loss on sale and disposal of property, plant and equipment-net ....
Other, net ...................................................................... ................
Changes in operating assets and liabilities:
Trade receivables ...........................................................................
Inventories ..................................................................... ................
Other current assets ...................................................... ................
Lease deposits ..............................................................................
Trade payables ..............................................................................
Accrued income taxes ...................................................................
Other, net ...................................................................... ................
Total adjustments ....................................................... ................
Net cash provided by operating activities ...................................
Investing activities :Purchase of property, plant and equipment ........................................
Proceeds from sale of property, plant and equipment .............................
Purchase of available-for-sale securities .............................................
Purchase of investments in consolidated subsidiaries
affecting scope of consolidation .....................................................
Net decrease (increase) in short-term loans to affiliates ..... ................
Deposits (Over three months) .............................................................
Other, net .......................................................................... ................
Net cash used in investing activities ...............................................
Financing activities :Net increase (decrease) in short-term loans ........................ ................
Proceeds from long-term loans ..........................................................
Repayment of long-term loans ...........................................................
Proceeds from issuance of bonds ......................................................
Repayment of bonds ......................................................... ................
Cash dividends paid .......................................................... ................
Other, net ..........................................................................................
Net cash provided by (used in) financing activities .......... ................
Effect of exchange rate changes on cash and cash equivalents .......
Net increase (decrease) in cash and cash equivalents .......................
Cash and cash equivalents, beginning of period .................................
Cash and cash equivalents of newly
consolidated subsidiary, beginning of period ...............................
Cash and cash equivalents, end of period .......................... ................ ¥The accompanying notes are an integral part of these statements.

25

4,531

2008
¥

4,454

2009
$

15,054—(16)(75)

18,109
163
(88)
351
629
2,037
75
14
27

184,353
1,659
(896)
3,573
6,403
20,737
764
143
275

37
286
—
619
780

(2,527)(6,539)
(529)
(236)

(25,725)(66,568)(5,385)(2,403)

2,608(6,650)
754
325
(464)
(6,178)(1,859)

1,557
55
1,222
14,32018,851

46,126

5,221
9,675

15,851560
12,440145,781
191,907(20,534)(24,802)(209,040)

390
(375)

182
(1,015)

3,970(3,817)—(49)(2,184)(3,125)(1,029)—(499)(22,233)

1,566(21,186)3(287)(30,073)

15,942(215,677)

2,267
27,300(15,881)(2,787)
33,775(24,325)

23,078277,919(161,672)

4,979(15,150)(2,631)(97)

19,880(60)(4,120)(95)

50,687(154,230)(26,784)
(986)

787

22,268

8,012(1,566)(3,114)

(323)
1,547
46,110(15,943)(31,701)

47,657809
45,352¥—47,657

485,157$

8,236
461,692

Notes to Consolidated Financial Statements
Nipro Corporation and its Consolidated Subsidiaries

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements areprepared from the consolidated financial statements issued fordomestic reporting purposes. Nipro Corporation (the “Company”)
and its domestic consolidated subsidiaries maintain theiraccounts and records in accordance with the provisions set
forth in the Japanese Securities and Exchange Law and its
related accounting regulations, and in conformity with generally
accepted acounting principles and practices in Japan. Its foreignsubsidiaries maintain their accounts in conformity with generally
accepted acounting promcoples of respective countries of domicile.
In preparing the accompanying consolidated financial
statements, certain reclassifications have been made to
the consolidated financial statements issued domestically in order topresent them in a form which is more familiar to readers outside Japan.
In addition, the notes to consolidated financial statements
include additional information which is not required undergenerally accepted accounting principles and practices in Japan.
Certain reclassifications have been made to the 2008 amounts tocoform with the 2009 presentation.
The financial statements presented herein are expressedin Japanese yen and, solely for the convenience of the reader,have been translated into United States dollars at the rate of¥98.23=US$1, the approximate exchange rate on March 31,
2009. These translations should not be contrued as
representations that the Japnaese yen amounts actually are,have been could be converted into U.S. dollar amounts.

2. Summary of Significant Accounting Policies(a) Basis of Consolidation(c) Cash and Cash Equivalents

The consolidated financial statements include the accounts of
the Company and the significant subsidiaries and affiliatedcompany accounted for by the equity method.
Investment in unconsolidated subsidiaries are statedat cost and the equity method is not applied for the valuationof such investments since they are considered immaterial in
the aggregate.
All significant intercompany balances and transactions
have been eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within
the Company and its consolidated subsidiaries is eliminated.
The difference between the cost of investments in
subsidiaries and affiliates and the equity in their net assets at
dates of acquisition is being amortized over five years.
All accounts herein have been presented on the basisof the twelve months ended March 31, 2009 for the Company
and for consolidated domestic subsidiaries, andDecember 31, 2008 for all overseas consolidated subsidiaries.
Adjustments have been made for any significant
intercompany transactions which took place during the period
between the end of accounting period of the overseas
subsidiaries and that of the Company.

Cash and cash equivalents include all highly liquid
investments, generally with original maturities of three months
or less, that are readily convertible to cash.

(b) Translation of Foreign Currencies
Balance sheets of consolidated overseas subsidiaries aretranslated into Japanese yen at the current exchange rate asof the balance sheet date except for shareholders’ equity,which is translated at the historical rate. Income statementsof consolidated overseas subsidiaries are translated into
Japanese yen at the average exchange rate for the period.
Resulting translation adjustments are shown as “Foreign
currency translation adjustments” in the “Valuation andtranslation adjustments and others” section of net assets.

(d) Inventories
Inventories are stated principally at cost. Cost is determinedprincipally by the average method, except for certain
inventories determined by the first-in, first-out method.

(e) Depreciation
Depreciation of property , plant and equipment of
the Company and its domestic subsidiaries is computed
principally by the declining-balance method. The straight-line
method is applied to buildings acquired by the domestic
companies after April 1, 1998, and is principally applied tothe property, plant and equipment of overseas subsidiaries.
The range of useful lives is principally from 31 to 50
years for buildings and from 7 to 8 years for machinery and equipment.

(f) Investment Securities
Investment securities are classified and accounted for,depending on management’s intent, as follows:i) held-to-maturity debt securities, which are expected to beheld to maturity with the positive intent and ability to hold tomaturity are reported at amortized cost; andii) available-for-sale securities, which are not classified as
the aforementioned securities, are reported at fair value.
Unrealized gain and loss, net of applicable tax, reported in
the “Valuation and translation adjustments and others” section of
net assets.
For year ended March 31,2009, there was noheld-to-maturity debt securities held by the Company and its

26

consolidated subsidiaries.
Non-marketable available-for-sale securities are statedat cost determined by the average method.
For other than temporary declines in fair value,
investment securities are reduced to net realizable value by
a charge to income.

(g) Leases
Finance leases of the Company and its domestic subsidiaries,
except for those where the legal title ofthe underlying property is transferred to the leasee at the endof the lease term, are accounted for as operating leases.
The pro forma information of such leased properties on a “asif capitalized” basis is presented in Note 8. “Leases”.

(h) Income Taxes
The provision for income taxes is computed based on income
for financial statement purpose. The asset and liability
approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of
temporary differences between the carrying amounts ofassets and liabilities for financial reporting purposes andthe amounts used for income tax purposes.

(i) Amounts per Common Share
Basic earnings per share is computed by dividing net income
available to common shareholders by the weighted-average
number of common shares outstanding for the period,
retroactively adjusted for stock splits. Diluted earnings per
share reflects the potential dilution that could occur if
securities were exercised or converted into common stock.
Diluted earnings per share of common stock assums fullconversion of the outstanding convertible notes and bonds atthe beginning of the year (or at the time of issuance) with anapplicable adjustment for related interest expense, net of tax,
and full exercise of outstanding warrants. For the year ended
March 31, 2009, there was no common stock equivalentsthat have a dilutive effect.

(j) Change in Accounting Policyi) Standards for measurement of inventories
The Company and its domestic consolidated subsidiaries
adopted the “Accounting standards for measurement of
inventories”(ASBJ Statement No.9, issued on July 5, 2006)
from the fiscal year ended March 31, 2009 and the basis ofmeasurement was mainly changed to writing down method
below cost to the net selling value for decreased profitability.
As a result, gross profit and operating income increased ¥10
million (US$102 thousand) and income before income taxes
and minority interests decreased ¥242 million (US$2,464
thousand),comparing with the computation by
the previous method. The effects of this change in specificsegments are described in the segment Information section (Note 13).
ii) Practical solution on unification of accounting policies

27

applied to overseas subsidiaries for consolidated
financial statements subsidiaries for consolidated
financial statements
The Company and its overseas consolidated subsidiaries
applied “Application of Practical Solution on Unification of
Accounting Policies Applied to Foreign subsidiaries for
Consolidated Financial Statements” (ASBJ “Practical Issues
Task Force No. 18,” May 17, 2006). Necessary adjustments
were made to the consolidated financial statements.
As a result, gross profit increased ¥220 million (US$2,240
thousand), operating income increased ¥217 million(US$2,209 thousand) and income before income taxes andminority interests increased ¥765 million (US$7,788
thousand),comparing with the computation by the previous
method. The effects of this change in specific segments aredescribed in the segment Information section (Note 13).
iii) Standards for lease transaction
The Company and its domestic subsidiaries applied the“Accounting Standard for Lease Transactions” (ASBJ
Statement No. 13, issued on June 7, 1993, ultimate revision
on March 30, 2007) and the “Guidance on AccountingStandard for Lease Transactions” (ASBJ Guidance No.16,
issued on January 18, 1994, ultimate revision on March 30,2007) from the current consolidated accounting period tochange the treatment of finance lease transaction that does
not transfer ownership from the one similar to an ordinary
rental transaction to the one similar to ordinary sale andpurchase transaction, to be an assets under finance lease.
As for the method of depreciation of the assets under financelease, its useful lives are equals to the lease term and theresidual values are equal to zero. However, we still adopted
the similar manner to an ordinary rental transaction for thefinance lease transactions that do not transfer ownership andthe starting dates of the lease transactions were before March
31, 2008. This change gave no effects on income.

(k) Supplemental Information
Change in useful life of tangible fixed assets
The company and its domestic subsidiary companies
changed the useful lives of machinery from the current
consolidated accounting period according to the revision of
the domestic corporate income tax law (Law for revision ofa part of income tax law and related law, published on April 30,
2008, the enforcement ordinance no.23). As a result, grossprofit decreased ¥1,726 million (US$17,571 thousand) andoperating income decreased ¥1,725 million (US$17,561
thousand), and income before income taxes and minority
interests decreased ¥1,692 million (US$17,225 thousand)respectively, comparing with the computation by the previous
useful lives. The effects of this change in specific segments
are described in the segment information section (Note 13).

3. Inventories
Inventories consisted of the following:Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Finished goods and merchandises .......................... ...............................

¥

Raw materials ........................................................................................
Work in process ....................................................................................
Packing and other .................................................................................
Total ..............................................................................................

¥

2008

35,759
6,853
6,410
2,092
51,114¥¥

2009

34,120
7,224
4,810
1,923
48,077$$364,033
69,76565,255
21,297
520,350

4. Income Taxes
The Company and its domestic subsidiaries are subject to Japanese national and local taxes based on income which, in aggregate,
resulted in a normal statutory tax rate of approximately 40.5% for the years ended March 31, 2009 and 2008.
The significant components of deferred tax assets and liabilities are as follows:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Deferred tax assets
Operating loss carryforwards for tax purposes ...............................
Intercompany profits ......................................................................
Allowance for bonuses to employees .............................................
Allowance for loss on clearance of business ... ...............................
Accounts receivable .......................................................................
Loss on impairment of fixed assets ................................................
Excess of allowance for doubtful accounts over tax allowable amounts ...
Accrued pension and severance liabilities .......................................
Accrued enterprise taxes ...............................................................
Other ..........................................................................................
Gross deferred tax assets ..................................................................
Less: Valuation allowance ..................................................................
Total deferred tax assets ....................................................................
Deferred tax liabilities
Unrealized gain on available-for-sale securities ..............................
Other .............................................................. ...............................
Total deferred tax liabilities .................................................................
Net deferred tax assets (liabilities) ...........................................................

2008

3,475
690
654
792
188
883
1,171
743
203
1,071
9,870
(4,272)

¥

¥

5,598

¥

3,423
100
3,523
2,075

¥

¥

¥
¥

2009

3,180
987
621
792
196
847
1,176
838
171
928
9,736
(3,484)

$

¥

6,252

$

56,989¥12,941
83
13,024(6,772)$

34,8471,018
35,865
21,124

¥

¥
¥

$

$
$

35,376
7,024
6,658
8,063
1,914
8,989
11,921
7,564
2,067
10,903
100,479(43,490)

Reconciliation of the differences between the statutory tax rates and the effective income tax rates was as follows:
Statutory tax rate ...............................................................................................................................
Expenses not deductible for tax purposes ......................................................................................
Non-taxable dividend income .........................................................................................................
Loss in subsidiaries ........................................................................................................................
Tax credits primarily for research and development costs ................................................................
Other .............................................................................................................................................
Effective income tax rate ....................................................................................................................

2009

2008

40.5%
1.8
(1.4)

40.5%
2.9
(1.4)

13.9
(5.0)
0.0
49.8%

10.9
(5.1)
(1.9)
45.9%

28

5. Pledged Assets
The following assets were pledged as collateral:Thousands of U.S. dollars (Note 1)

Millions of yen

2009Land ...................................................................................................... ¥Buildings and structures ........................................................................
Notes receivable ....................................................................................
Total .............................................................................................. ¥

2008

2,448
9,437
3,432
15,317

¥

¥

3,330
6,322
2,370
12,022

2009$

24,921
96,07034,938
155,929$

The above assets were pledged against the following liabilities:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Short term bank loans ............................................................................

¥
Current portion of long-term debt ..........................................................
Long-term debt.......................................................................................
Total .............................................................................................. ¥

2008

3,925
681
5,863
10,469

¥

¥

3,290
965
1,311
5,566

2009
$

39,957
6,933
59,686
106,576$

6. Loss on Impairment of Fixed Assets
The Company and its consolidated subsidiaries reviewed their fixed assets for impairment as of March 31, 2009 and, as a result,recognized impairment loss of ¥163 million (US$1,659 thousand) as follows:
Use

Type of asset

2009
Location

Millions of yen

Idle asset
Buildings and Machinery etc.
3 sites in Gunma Pref. etc.
Assets for common use Buildings and Land
1 site in Akita Pref.
Total .....................................................................................................................

¥¥

Thousands of U.S. dollars (Note 1)

150
13
163

$
$

1,527
132
1,659

7. Investment securities
Investment securities as of March 31, 2009 and 2008 consisted of the followings:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Non-current:
Marketable:
Marketable equity securities ...........................................................
Investment trust funds and other ....................................................
Sub total ........................................................................................
Non-marketable securities .................................................................
Total ..............................................................................................

29

¥
¥
¥
¥

31,77039
31,8091,394
33,203

2008

¥
¥
¥
¥

55,28559
55,344
1,184
56,528

2009

$
$
$
$

323,425397
323,822
14,191
338,013

The carrying amounts and aggregate fair values of marketable securities for investments as of March 31, 2009 and 2008 were as follows:
Millions of yen

2009
Available-for-sale securities
Equity securities ................................................... ........
Debt securities and other ..................................... ........
Total ........................................................................

¥
¥

Cost

Unrealized gain

Unrealized loss

24,20061
24,261¥¥

11,279—11,279¥¥Fair Value

3,709
22
3,731

¥

31,77039
31,809¥Thousands of U.S. dollars (Note 1)

2009
Available-for-sale securities
Equity securities ................................................... ........
Debt securities and other ..................................... ........
Total ........................................................................

$
$

Cost

Unrealized gain

Unrealized loss

246,361621
246,982$$

114,822—
114,822$$

Fair Value

37,758224
37,982$

323,425397
323,822$

Millions of yen

2008
Available-for-sale securities
Equity securities ................................................... ........
Debt securities and other ..................................... ........
Total ........................................................................

¥
¥

Cost

Unrealized gain

Unrealized loss

24,27360
24,333¥¥31,303—31,303¥¥

Fair Value

291
1
292

¥

55,28559
55,344¥

8. Leases
The pro forma information of leased assets under finance leases that do not transfer ownership of the leased property to
the lessee on an “as if capitalized” basis as of March 31, 2009 and 2008 was follows:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Acquisition cost ....................................................... ..............................

¥
Accumulated depreciation .....................................................................
Net leased property ................................................. .............................. ¥

2008

1,659
1,113
546

¥
¥

2,695
1,884
811

2009
¥
Payments due after one year .................................................................
Total ................................................................ .............................. ¥

290
440
730

$
$

2008
¥
¥

16,88911,331
5,558

Thousands of U.S. dollars (Note 1)

Millions of yen

Payments due within one year ...............................................................

2009

525
657
1,182

2009
$
$

2,952
4,479
7,431

Lease payments under such leases for the years ended March 31, 2009 and 2008 were ¥535 million (US$5,446 thousand) and¥606 million, respectively.

30

9. Short-Term Loans and Long-Term Debt
Short-term loans comprised overdrafts and promissory notes.
The weighted-average interest rate of short-term bank loans for the years ended March 31, 2009 and 2008 was 1.207% and1.402%, respectively.
Long-term debt comprised the following:Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Zero coupon convertible bonds due 2023 .............................................

¥
3.2% unsecured bonds due 2008 ..........................................................
1.42% unsecured bonds due 2011 ........................................................
1.07% unsecured bonds due 2010 ........................................................
1.18% unsecured bonds due 2009 ........................................................
1.18% unsecured bonds due 2009 ........................................................
1.51% unsecured bonds due 2012 ........................................................
1.37% unsecured bonds due 2013 ........................................................
2.04% unsecured bonds due 2018 ........................................................
0.67% unsecured bonds due 2008 ........................................................
0.72% unsecured bonds due 2008 ........................................................
1.28% unsecured bonds due 2009 ........................................................
0.7% unsecured bonds due 2010 ..........................................................
0.95% unsecured bonds due 2010 ........................................................
0.79% unsecured bonds due 2010 ........................................................
1.55% unsecured bonds due 2011 ........................................................
Long-term bank loans due through 2020, with weighted-averageinterest rate of 1.506% for the year ended March 31, 2009, andof 1.435% for the year ended March 31, 2008. .........................................
Less current portion of long-term debt ...................................................
Total .............................................................................................. ¥In June 1998, the Company issued ¥10,000 million(US$101,802 thousand) of 3.2% unsecured bonds due 2008.
In July 2003, the Company issued ¥14,000 million(US$142,523 thousand) of zero coupon convertible bondsdue 2023.
In September 2003, Nipro Genepha Corporation issued¥100 million (US$1,018 thousand) of 0.67% privately-placedbonds to be serially redeemed by 2008.
In July 2004, the Company issued ¥3,000 million(US$30,541 thousand) of 1.18% privately-placed bonds due
2009.
In January 2005, Zensei Pharmaceutical Industries Co.,
Ltd. issued ¥100 million (US$1,018 thousand) of 0.7%
privately-placed bonds to be serially redeemed by 2010.
In August 2005, Zensei Pharmaceutical Industries Co.,
Ltd. issued ¥100 million (US$1,018 thousand) of 0.95%
privetely-placed bonds due 2010.
In August 2005, Zensei Pharmaceutical Industries Co.,
Ltd. issued ¥100 million (US$1,018 thousand) of 0.79%
privately-placed bonds to be serially redeemed by 2010.

31

14,000—10,000
3,000
3,000
—
5,000
10,00010,000
—
—
100
20
100
30
50

¥

82,704(23,832)
114,172

2009

2008

¥

14,00010,00010,000
3,000
3,000
5,000
—
10,00010,000
10
100
100
40
100
50
50

71,419(30,164)
106,705$

142,522—
101,80230,54130,541—50,901
101,802
101,802
—
—
1,018
204
1,018
305
509

841,942(242,614)$

1,162,293

In March 2006, the Company issued ¥10,000 million(US$101,802 thousand) of 1.42% unsecured bonds due 2011.
In March 2006, the Company issued ¥ 5,000 mllion(US$50,901 thousand) of 1.18% privately-placed bonds due
2009.
In March 2006, Zensei Pharmaceutical Industries Co.,
Ltd. issued ¥50 million (US$509 thousand) of 1.55%
privately-placed bonds due 2011.
In March 2008, the Company issued ¥10,000 million(US$101,802 thousand) of 1.37% unsecured bonds due
2013.
In March 2008, the Company issued ¥10,000 million(US$101,802 thousand) of 2.04% unsecured bonds due
2018.
In February 2009, the Company issued ¥ 5,000 million( US$50,901 thousand ) of 1.51% privately-placed bondsdue 2012.

The aggregate annual maturities of long-term debt outstanding at March 31, 2009 are as follows:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
2009 ........................................................................ ..............................
2010 ........................................................................ ..............................
2011 ........................................................................ ..............................
2012 and thereafter ................................................. ..............................
Total ................................................................ ..............................

As is customary in Japan, long-term and short-term bankloans are made under general agreements which provide that
additional securities and guarantees for present and futureindebtedness will be given under certain circumstances at
the request of the bank.

¥

¥

2009

23,832
25,77017,69970,703138,004$$

262,614262,343
180,179
719,771
1,404,907

In addition, the agreements provide that the bank has
the right to offset cash deposits against any long-term andshort-term bank loan that becomes due, and in case of default
and certain other specified events, against all other loans
payable to the bank.

10. Accrued Pension and Severance Liabilities
The Company and certain consolidated subsidiaries have defined benefit pension plans and unfunded retirement benefit plans for
employees. The following table sets forth the changes in projected benefit obligation, plan assets and funded status of
the Company and its consolidated subsidiaries at March 31, 2009 and 2008.
Thousands of U.S. dollars (Note 1)

Millions of yen

20091) Projected benefit obligation ................................. .............................. ¥2) Fair value of plan assets ...................................... ..............................
3) Projected benefit obligation in excess of plan assets 1)+2) .....................
4) Unrecognized actuarial (gain) loss ......................................................
5) Unrecognized past service obligation .................................................
6) Total 3)+4)+5) ...................................................................................
7) Prepaid pension cost ........................................................................
8) Accrued pension and severance liabilities 6)-7) .... .............................. ¥2008(9,194)¥(8,876)

2009(93,597)$

6,992(1,884)(173)(21)(2,078)6,337(2,857)1,030(18)(1,845)44(1,889)¥50(2,128)64,512(29,085)
10,486(183)(18,782)448(19,230)$

The breakdown of net pension and severance costs for the years ended March 31, 2009 and 2008 were as follows:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009Service cost .......................................................................................... ¥Interest cost ..........................................................................................
Expected return on plan assets .............................................................
Amortization of actuarial gain .................................................................
Amortization of past service obligation ...................................................
Other ....................................................................... ..............................
Net pension and severance costs ............................ .............................. ¥

2008

679
220
(116)
(230)
(3)
85
635

2009

¥

586
208
(124)
(262)
(3)
69

$

¥

474

$

6,912
2,240
(1,181)(2,341)
(31)
865
6,464

The assumptions used in the accounting for the above benefit plans were as follows:
Discount rate ...........................................................................................................
Expected rate of return on plan assets .....................................................................
Amortization period of past service obligation ...........................................................
Amortization period of actuarial differences .............. ................................................

2009

2008

Primarily 2.5%
Primarily 1.5%
Primarily 5 years
Primarily 5 years

Primarily 2.5%
Primarily 1.5%
Primarily 5 years
Primarily 5 years

3211. Commitments and Contingent Liabilities
The Company and Consolidated Subsidiaries had the following commitments and contingent liabilities:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Liabilities for guarantees .........................................................................

¥
Export drafts discounted ........................................................................
Trade notes receivable discounted ........................................ .................
Total .............................................................................. ................. ¥

2008
54
18
14
86

¥

¥

549
18
199
766

2008
$

$

550
183
142
875

12. Net Assets
The significant provisions in the Corporate Law of Japan(the “Corporate Law”) that affect financial and accounting
matters are summarized below:

The Corporate Law provides certain limitations on
the amounts available for dividends or the purchase oftreasury stock.

(a) Dividends(b) Increases / decreases and transfer of common
stock, reserve and surplus

Under the Corporate Law, companies can pay dividends at
any time during the fiscal year in addition to the year-end
dividend upon resolution at the shareholders meeting. For
companies that meet certain criteria such as (1) having
the board of directors, (2) having independent auditors, (3)having the board of corporate auditors, and (4) the service
period of the directors is prescribed as one year rather than
the normal term of two years by its articles of incorporation,
the board of directors may declare dividends (except for
dividends in kind) if the company has prescribed so in its
articles of incorporation. The Company’s present systemmeets the first three criteria but the two-year service periodof the directors does not meet the fourth criterion.
Interim dividends may also be paid once a year by
the resolution of the board of directors if the articles ofincorporation of the company stipulate so. The Company’s
articles of incorporation contain such a stipulation, and it
pays interim dividend semi-annually by the resolution of
the Board of Directors.

The Corporate Law requires that an amount equal to 10% of
dividends must be appropriated as a legal reserve (acomponent of retained earnings) or as additional paid-in
capital (a component of capital surplus) depending on
the equity account charged upon the payment of such
dividends until the total of aggregate amount of legal reserve
and additional paid-in capital equals 25% of the common stock.
Under the Corporate Law, the total amount of additional paid-in
capital and legal reserve may be reversed without limitation.
The Corporate Law also provides that common stock,legal reserve, additional paid-in capital, other capital surplus
and retained earnings can be transferred among the accounts
under certain conditions by the resolution of the shareholders.
The Company’s legal reserve, which is included inretained earnings, amounted to ¥1,196 million (US$12,176
thousand) as of March 31, 2009, and its additional paid-in
capital, which is included in capital surplus, amounted to¥29,972 million (US$ 305,121 thousand) as of March 31, 2009.

13. Segment Reporting
The Company and its consolidated subsidiaries are primarily
engaged in the business consisting of three major segments:
Medical Equipment, Pharmaceutical and Glass and Materials.
The Company is organized into operating segments basedon the market nature of products.
The Medical Equipment segment manufactures andsells disposable medical equipment. The medical equipment
sold includes dialyzers, dialysis-related devices, andinjection-related products.
The Pharmaceutical segment manufactures and sells

33

a range of pharmaceutical products and devices, such asprescribed specialized and diagnostic products for hospitaluse, and medical equipment incorporating solutions anddrugs, such as pre-filled syringes and infusion kits.
The Glass and Materials segment sells internal glass
sections for vacuum flasks, glass tubes for ampoule and vial
production, glass tube vials and other glass products.
The sales of “Other” include the sales of machinery for
manufacture of medical equipment and real estate rental income.

Business segment information for the years ended March 31, 2009 and 2008 was as follows:
Millions of yen

2009
MedicalEquipment

Net sales:
Outside ..................................... ¥ 112,970
Intersegment .............................
—
Total ..........................................
112,970
Operating expenses ......................
96,761
Operating income .......................... ¥ 16,209
Identifiable assets .......................... ¥ 120,447
Depreciation and amortization ........
9,720
Loss on impairment of fixed assets ...
13
Capital expenditures ......................
11,516

Glass &
Materials

Pharmaceutical¥

52,726—52,726
48,644¥
4,082¥ 111,203
6,963
19
20,633

¥

¥
¥

9,554
3,389
12,943
11,171
1,772
10,800
445
131
134

Other

¥

¥
¥

695
90
785
781
4
6,106
89
—
68

Total

¥ 175,945
3,479
179,424
157,357¥ 22,067¥ 248,556
17,217163
32,351Eliminations/
Corporate

Consolidated

3,813(7,292)
82,085892—
791¥ 175,945—
175,945
161,170¥ 14,775¥ 330,641
18,109163
33,142Eliminations/
Corporate

Consolidated

¥

¥
¥

—
(3,479)(3,479)Thousands of U.S. dollars (Note 1)

2009
MedicalEquipment

Pharmaceutical

Net sales:
Outside ..................................... $1,150,056
Intersegment .............................
—
Total .......................................... 1,150,056
Operating expenses ......................
985,045
Operating income .......................... $ 165,011
Identifiable assets .......................... $1,226,173
Depreciation and amortization ........
98,951
Loss on impairment of fixed assets ...
132
Capital expenditures ......................
117,235$ 536,761—
536,761495,205$ 41,556$1,132,068
70,885
193
210,048

Glass &
Materials$

97,261
34,501
131,762
113,723$ 18,039$ 109,946
4,530
1,334
1,364

Other

$

$
$

7,075
916
7,991
7,951
40
62,160
906
—
692

Total

$1,791,153
35,417
1,826,570
1,601,924$ 224,646$2,530,347
175,272
1,659
329,339

38,817$ (74,234)$ 835,641
9,081
—
8,053

$ 1,791,153—
1,791,153
1,640,741$ 150,412$ 3,365,988
184,353
1,659
337,392

Eliminations/
Corporate

Consolidated$—(35,417)(35,417)

Millions of yen

2008
MedicalEquipment

Net sales:
Outside ..................................... ¥ 111,084
Intersegment .............................
—
Total ..........................................
111,084
Operating expenses ......................
95,254
Operating income .......................... ¥ 15,830
Identifiable assets .......................... ¥ 133,581
Depreciation and amortization ........
7,057
Capital expenditures ......................
16,419Glass &
Materials

Pharmaceutical¥¥¥

48,754—48,75445,483
3,271
93,143
6,613
8,352

¥

¥
¥

11,437
3,166
14,603
12,713
1,890
12,326
471
386

Other

¥

¥
¥

838
75
913
900
13
5,701
80
59

Total

¥ 172,113
3,241
175,354
154,350¥ 21,004¥ 244,751
14,221
25,216¥—(3,241)(3,241)

4,086(7,327)¥¥ 104,551
833
684¥ 172,113—
172,113
158,436¥ 13,677¥ 349,302
15,05425,900Note:(1) Operating expenses of “Eliminations/Corporate” for the years ended March 31, 2009 and 2008 included unallocated corporate costs of ¥7,292 million (US$74,234
thousand) and ¥7,327 million, respectively. The unallocated corporate costs consisted primarily of research and development costs and headquarters administration costs.
(2) Assets of “Eliminations/Corporate” at March 31, 2009 and 2008 included ¥82,341 million (US$ 838,247 thousand) and ¥104,741 million of corporate assets, respectively,
consisting primarily of cash and cash equivalents, investments securities, research and development -related equipment and headquarters administration-related assets.
(3) The Company and its consolidated domestic subsidaries adopted “Accounting standards for measurement of inventories”, and the basis of measurement has beenchanged to writing down method below cost to the net selling value for decreased profitability. As a result, operating expenses in Medical Equipment segment is
supposed to be increasing ¥7 million yen (US$71 thousand) and that in Pharmaceutical segment is supposed to be decreasing ¥18 million yen (US$183 thousand), while
operating income in Medical Equipment and pharmaceutical segments are supposed to be increased and decreased equivalently, comparing with the incomes calculated
according to previous method.
(4) The Company and its consolidated subsidiaries adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” from the current consolidated accounting period to make necessary adjustments on consolidation. As a result, operating expenses in Medical
Equipment segment decreased ¥218 million (US$2,219 thousand), and operating incomes are supposed to increase equivalently, comparing with the incomes calculated
according to previous method.
(5) The Company and its consolidated domestic subsidiary companies have changed the useful lives of machinery from the current consolidated accounting period
according to the revision of corporate income tax law. As a result, operating expenses in Medical Equipment, Glass & Materials, Others and Eliminations/Corporate
segments are supposed to be increased ¥2,056 million (US$20,930), ¥42 million (US$428), ¥2 million (US$20 thousand) and ¥1 million (US$10 thousand) respectively
and that in Pharmaceutical segment decreased ¥374 million (US$3,807 thousand) while operating incomes in Medical Equipment, Glass & Materials and Others andEliminations/Corporate segments are supposed to be decreased and that in pharmaceutical segment increased equivalently.

34

The information by geographic area for the years ended March 31, 2009 and 2008 was as follows:
Millions of yen

2009
Japan

Net sales:
Outside ..................................... ¥Intersegment .............................
Total ..........................................
Operating expenses ......................
Operating income (loss) ................. ¥Identifiable assets .......................... ¥134,330
30,207
164,537
144,027
20,510256,812

America¥¥¥

21,307823
22,13022,721(591)
3,025Europe¥¥¥Eliminations/
Corporate

Asia

12,432
4
12,436
12,468
(32)
5,082

¥

¥
¥

7,876
14,382
22,25820,8481,410
6,085

Consolidated

¥
¥

¥
¥

(45,416)(45,416)(38,894)(6,522)
59,637¥¥

175,945—
175,945
161,170
14,775
330,641

Thousands of U.S. dollars (Note 1)

2009
Japan

Net sales:
Outside ..................................... $Intersegment .............................
Total ..........................................
Operating expenses ......................
Operating income (loss) ................. $Identifiable assets .......................... $1,367,505
307,513
1,675,018
1,466,222
208,7962,614,395

America$$$

216,909
8,378
225,287
231,304(6,017)30,795

Europe$$$Eliminations/
Corporate

Asia

126,560
41
126,601
126,927(326)
51,736$$$80,179146,411226,590
212,237
14,353
61,946$$$—(462,343)(462,343)(395,949)(66,394)
607,116

Consolidated$$$

1,791,153—
1,791,153
1,640,741
150,4123,365,988

Millions of yen

2008
Japan

Net sales:
Outside ..................................... ¥Intersegment .............................
Total ..........................................
Operating expenses ......................
Operating income (loss) ................. ¥Identifiable assets .......................... ¥135,60926,416
162,025
139,984
22,041
241,544

America¥¥¥

20,9091,137
22,04623,712(1,666)
8,661

Europe

¥

¥
¥

9,174
9
9,183
8,974
209
4,565

Eliminations/
Corporate

Asia

¥

¥
¥

6,421
13,955
20,376
19,424
952
9,585

¥

¥
¥

—
(41,517)(41,517)(33,658)(7,859)84,947

Consolidated¥¥¥

172,113—
172,113
158,436
13,677349,302Note:(1) Operating expenses of “Eliminations/Corporate” for the years ended March 31, 2009 and 2008 included unallocated corporate costs of ¥7,292 million(US$74,234 thousand) and ¥7,327 million, respectively. The unallocated corporate costs consisted primarily of research and development costs andheadquarters administration costs.
(2) Assets of “Eliminations/Corporate” at March 31, 2009 and 2008 included ¥82,341 million (US$ 838,247 thousand) and ¥104,741 million of corporate assets,
respectively, consisting primarily of cash and cash equivalents, investments securities, research and development -related equipment and headquarters
administration-related assets.
(3) The main countries of each geographic area are:America : The United States of America and Brazil
Europe : Belgium
Asia: China, Thailand and Singapore(4) The Company and its consolidated domestic subsidaries adopted “Accounting standards for measurement of inventories”, and the basis of measurement has
been changed to writing down method below cost to the net selling value for decreased profitability. As a result, operating expenses in Japan segment aresupposed to be decreased ¥11 million (US$112 thousand) , and operating incomes are supposed to be increased equivalently.
(5) The Company and its consolidated subsidiaries adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” from the current consolidated accounting period to make necessary adjustments on consolidation. As a result, operating
expenses in America and Asia segments are supposed to be decreased ¥229 million (US$2,331 thousand) and be increased ¥11 million (US$112 thousand)respectively, while operating incomes in America segment is to be equivalently increased and in Asia segment decreased, respectively.
(6) The Company and its consolidated domestic subsidiary companies have changed the useful lives of machinery from the current consolidated accounting period
according to the revision of corporate income tax law. As a result, operating expenses in Japan and Eliminations/Corporate segment are supposed to be increased¥1,725 million (US$17,561 thousand) and ¥1 million (US$10) respectively, while the operating costs are supposed to be respectively decreased.

35

Sales to foreign customers were as follows:
Millions of yen

2009
America

Export sales and sales byoverseas subsidiaries ................. ¥ 33,291
Percentage of such sales against
18.9%
consolidated net sales . . . . . . . . . . . . . . .

2008

Europe

Asia

Total

America

Europe

Asia

Total

¥ 19,991¥ 10,666¥ 63,948¥ 35,688¥ 19,140¥ 10,284¥ 65,112

11.4%

6.1%

36.4%

20.7%

11.1%

6.0%

37.8%

Thousands of U.S. dollars (Note 1)

2009
America

Export sales and sales byoverseas subsidiaries ................. $ 338,909
Percentage of such sales against
18.9%
consolidated net sales . . . . . . . . . . . . . . .

Europe

Asia

Total

$ 203,512$108,582$ 651,003

11.4%

6.1%

36.4%

14. Selling, General and Administrative Expenses
Significant components of selling, general and administrative expenses for the years ended March 31, 2009 and 2008 are as follows:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Salaries ................................................................... ..............................

¥

Freight charges ....................................................... ..............................

2008

9,610
4,320

¥

8,976
3,952

2009
$

97,832
43,97815. Research and Development Expenses
Research and development expenses for the years ended March 31, 2009 and 2008 were ¥5,352 million (US$54,484 thousand) and¥6,194 million, respectively.

16. Supplemental Disclosures of Cash Flow Information
Supplemental information related to the Consolidated Statements of Cash Flows was as follows:
Thousands of U.S. dollars (Note 1)

Millions of yen

2009
Cash paid during the year for :Interest .............................................................................................. ¥Income tax ........................................................................................

2,784
3,522

2008
¥

1,889
10,137

2009$

28,34235,85536

Report of Independent Auditors
INDEPENDENT AUDITORS’ REPORTTo the Board of Directors of
Nipro Corporationt
We have audited the accompanying consolidated balance sheet of Nipro Corporation and consolidated
subsidiaries as of March 31, 2009 , and the related consolidated statement of income, changes in net assets,
and cash flows for the year then ended, all expressed in Japanese yen. The consolidated financial statements
are the responsibility of Nipro Corporation’s management. Our responsibility is to express an opinion on the
consolidated financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the consolidated financial position of Nipro Corporation and consolidated subsidiaries as of March 31, 2009,
and the consolidated results of operations and cash flows for the year then ended in conformity withaccounting principles generally accepted in Japan.

Osaka, Japan
July 31, 2009
Osaka Audit Corporation

37

Corporate Information (As of March 31, 2009)
Date of Establishment

Common Stock

July 8, 1954

Authorized
IssuedOutstanding
Number of Shareholders

Head Office
3-9-3 Honjo-nishi, Kita-ku, Osaka 531-8510, Japan
Telephone : +81-6-6372-2331
Facsimile : +81-6-6375-0669
http://www.nipro.co.jp/english/

200,000,000 shares
63,878,505 shares
63,430,631 shares
12,448Stock Listings
Tokyo Stock Exchange, Osaka Securities Exchange
Ticker Code: 8086

Tokyo OfficeTransfer Agent

4-3-4 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan
Telephone : +81-3-5684-5611
Facsimile : +81-3-5684-5610

Mizuho Trust & Banking Co., Ltd., Osaka Branch,
Stock Transfer Agency Dpt.
2-11-16 Sonezaki, Kita-ku, Osaka 530-0057, Japan

Number of Employees
Parent Company ............................................................... 2,152
Consolidated subsidiaries ................................................. 7,202
Total ................................................................................... 9,354

Stock Price Range (Tokyo Stock Exchange)

Principal Shareholders
Number of Shares Held Percentage of Total(in thousands)
Shares in Issue (%)

(Yen)
3,000

Sanri Kosan Co., Ltd.............................. 12,920

20.23

2,800

Japan Trustee Services Bank, Ltd..........

9,000

14.09

2,600

The Master Trust Bank of Japan, Ltd.....

3,498

5.48

2,400

Trust & Custody Services Bank, Ltd. .....

2,297

3.60

2,200

Minoru Sano ..........................................

1,993

3.12

2,000

Resona Bank Limited ............................

1,380

2.16

1,800

Mizuho Corporate Bank, Ltd. .................

782

1.23

1,600

Bank of New York, Tax Treaty JASDEC Omnibus Two ..

705

1.10

1,400

NikkoCiti Trust and Banking Corporation ..

651

1.02

1,200

The Dai-ichi Mutual Life Insurance Company ..

632

0.99

1,000

Total ...................................................... 33,859

53.01

12

3

6

9

2007

12

2008

3

6

9

12

3

2009

Subsidiaries and affiliates (As of June 30, 2009)
Area

Country

DomesticJapan

Overseas

ThailandCompany
Nipro Medical Industries Co., Ltd.
Nipro Pharma Corporation
Nipro Genepha Corporation
Tohoku Nipro Pharmaceutical Corporation
Zensei Pharmaceutical Industries Co., Ltd.
Nipro Patch Co., Ltd.
Nissho Insurance Services Co., Ltd.
Washu Kogyo Co., Ltd.
Bipha Corporation
Cell Science & Technology Institute, Inc.
Nipro (Thailand) Corporation Ltd.
Nipro Sales (Thailand) Co., Ltd.
Nipro Hospital Products, Inc.
Nipro Medical (India) Pvt Ltd.
Nipro (Shanghai) Co., Ltd.
Nipro Trading (Shanghai) Co., Ltd.
Shanghai Nissho Vacuum Flask Refill Co., Ltd.
Nipro Asia Pte Ltd.
Nipro Middle East FZE
Nipro South Africa Pty Ltd.
Nipro Medical LTDA.
Nipro Medical Corporation
Nipro Diabetes Systems, Inc.
Nipro Medical Panama S.A.
Nipro Medica de Mexico, S.A. DE C.V.
Nipro Medical Puerto Rico Inc.
Nipro Europe N.V.
Nipro Biocorp S.A.
OOO Nipro Medical*

Philippines
India
China
Singapore
U.A.E.
South Africa
BrazilU.S.A.
PanamaMexicoPuerto Rico
Belgium
FranceRussiaSegment

Principal business

Medical Equipment
PharmaceuticalPharmaceuticalPharmaceuticalPharmaceuticalPharmaceutical
Other
Other
Pharmaceutical
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Glass & Materials
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment
Medical Equipment

Manufacturing
Manufacturing and Marketing
Manufacturing and Marketing
Manufacturing
Manufacturing and Marketing
Manufacturing and R&D
Insurance Agency
Real estate lease
R&D and Manufacturing
R&D, Manufacturing and Marketing
Manufacturing and Marketing
MarketingMarketingMarketing
Manufacturing and Marketing
MarketingMarketingMarketingMarketingMarketing
Manufacturing and Marketing
Marketing
R&D and Marketing
MarketingMarketingMarketingMarketingMarketingMarketing: Affiliate accounted for by the equity method*

38

NIPRO CORPORATION
3-9-3 Honjo-nishi, Kita-ku, Osaka 531-8510, Japan
Telephone: +81-6-6372-2331
Facsimile : +81-6-6375-0669
http://www.nipro.co.jp/english/