Flash Report for the First Three Quarters of FY 2008
(on a consolidated basis)
February 12, 2009
Name of the listed company: NIPPON SHINYAKU CO., LTD.
Code No.: 4516
Listing stock exchange: Tokyo, Osaka
URL http://www.nippon-shinyaku.co.jp/
Representative: Shigenobu Maekawa, President and Representative Director
Contact: Taro Sakurai, General Manager of Finance & Accounting Dept. Tel. +81-75-321-9114
Scheduled date for submission of Quarterly Report: February 13, 2009
* All amounts are rounded down to the nearest million yen.

1. Results for the First Three Quarters (April 1 to December 31, 2008)(1) Operating results(¥ million)

Three quarters ended December 31, 2008
Three quarters ended December 31, 2007

Net sales¥48,661—%
44,017
4.8

Operating income¥7,052
—%
5,231
40.8

Ordinary income¥7,058
—%
5,986
44.4

Net income
Earnings per share (¥)
Diluted EPS (¥)
Three quarters ended December 31, 2008
¥3,861—%¥57.11¥—Three quarters ended December 31, 2007
3,430
53.7
50.69
—
Note: Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.

(2) Financial position
Total assets

Net assets(¥ million)
Net assets
per share (¥)

Equity ratio

As of December 31, 2008
¥ 98,735¥76,667
As of March 31, 2008
103,115
76,951
Note: Owners’ equity
As of December 31, 2008: ¥76,519 million As of March 31, 2008: ¥76,804 million

77.5%
74.5

¥1,132.18
1,135.40

2. Dividends
Cash dividends per share (¥)
Quarter-end
Year-end
1st
2nd
3rd¥—
¥7.00
¥—¥9.00
Year ended March 31, 2008
9.00——Year ending March 31, 2009
9.00
Year ending March 31, 2009 (forecast)
Note: Revisions to dividend payment forecasts during the period: not applicable

Annual¥16.00
18.00

3. Business Performance Forecasts for the Year Ending March 31, 2009
(April 1, 2008 to March 31, 2009)
Net sales

Operating income

Ordinary income

Full term¥63,000
6.0%¥7,0008.3%¥7,300Notes: 1. Percentage figures represent year-on-year comparisons.
2. Revisions to performance forecasts during the period: not applicable

6.4%

Net income¥4,4009.2%(¥ million)
Earnings
per share (¥)¥65.09The above forecasts are based on data available as of the date of release of this document as well as assumptions based on uncertain
factors, which might have a material effect on the Company’s performance in the future. Readers are advised that actual results may
differ substantially from the above forecasts due to various unforeseeable factors.

4. Others(1) Changes in the scope of consolidation
Inclusion: none
Exclusion: none(2) Significant methods applied for accounting: applicable(3) Changes in significant accounting policies
Changes in accounting standard: applicable
Other: not applicable
Effective from the reporting period, the company has applied Accounting Standards for the Preparation of
Quarterly Financial Statements and Application Guidelines for Accounting Standards for the Preparation of
Quarterly Financial Statements. In addition, our quarterly financial statements have been prepared in accordancewith “Regulations governing the preparation of consolidated quarterly financial statements.”(4) Number of ordinary shares issued at the end of the period (including treasury stock)
As of December 31, 2008: 70,251,484 shares As of March 31, 2008: 70,251,484 shares
Number of shares in treasury at the end of the period
As of December 31, 2008: 2,665,732 shares
As of March 31, 2008: 2,606,466 shares
Average number of shares during the period
Three quarters ended December 31, 2008: 67,612,590 shares
Three quarters ended December 31, 2007: 67,673,760 shares

Consolidated Balance Sheets(¥ million)
As of December 31, 2008

As of March 31, 2008

¥ 8,519
29,987
4,900
5,844
1,070
434
3,366
983
1,004(0)¥ 11,234
27,036
4,599
6,332
972
260
3,030
1,743
1,071
(0)

56,111

56,281

Noncurrent assets:
Tangible fixed assets:
Buildings and structures – netLand
Other – net

9,004
8,164
3,443

8,919
8,172
3,213

Total tangible fixed assets

20,612

20,304284

259

Investments and other assets:
Investment securities
Deferred tax assets
Investments in real estate – net
Long-term prepaid expenses
Other
Allowance for doubtful accounts

13,186
46
1,337
6,366
844(54)

19,212
55
1,356
4,527
1,172(53)Total investments and other assets

21,72526,270AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Merchandise and finished products
Semi-finished products
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets

Intangible assets

Total noncurrent assets
Total assets

42,623

46,834¥98,735¥103,115(¥ million)
As of December 31, 2008
Liabilities
Current liabilities:
Notes and accounts payable
Short-term borrowings
Current portion of long-term debt
Accrued liabilities
Income taxes payable
Reserve for bonuses
Reserve for sales returns
Other current liabilities
Total current liabilities¥ 4,529
60
308
3,751
692
1,232
46
2,506As of March 31, 2008¥

5,061
30
1,162
3,034
1,649
2,402
22
1,708

13,127

15,071Long-term liabilities:
Long-term debt
Deferred tax liability
Liability for retirement benefits
Other long-term liabilities

32343
8,342
222

59
2,207
8,536
290

Total long-term liabilities

8,940

11,093

Total liabilities

22,067

26,164

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

5,174
4,444
64,914(1,977)

5,174
4,441
62,270(1,900)72,55669,986

Valuation and translation adjustments:
Unrealized gain on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustments

Total shareholders’ equity

3,991
(13)
(14)

6,822
(0)
(4)

Total valuation and translation adjustments

3,962

6,818

148

147

Minority interests
Total net assets

76,66776,951

Total liabilities and net assets¥98,735¥103,115

Consolidated Statement of Income(¥ million)
Three quarters ended
December 31, 2008
Net sales
Cost of sales
Provision for reserve for sales returns¥48,661
21,70424

Gross profit
Selling, general and administrative expenses:
Salaries and benefits
Provision for bonuses
Sales promotion expenses
Provision for retirement benefits
Depreciation
R&D expenses
Other
Total selling, general and administrative expenses

26,933Operating income
Non-operating income:Interest income
Dividend received
Rent income
Other

7,052

5,710
788
941
738
263
5,967
5,470
19,880

163
254
231
193

Total non-operating income
Non-operating expenses:
Interest expenses
Donation
Loss on disposal of noncurrent assets
Expenses for dismantling plantLeasing expenses
Foreign exchange loss
Other842Total non-operating expenses

837

Ordinary income
Extraordinary losses:
Loss on valuation of investment securities

7,058

Total extraordinary losses

12130
33
7072408
108

339
339

Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred

6,719
1,971
884

Total income taxes
Minority interests in net income

2,856
1

Net income¥ 3,861

Consolidated Statement of Cash Flows(¥ million)
Three quarters ended
December 31, 2008
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortizationDecrease in liability for retirement benefits
Decrease in other reserves
Interest and dividend income
Interest expenses
Foreign exchange loss
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Increase in notes and accounts receivable
Increase in inventories
Decrease in other current assets
Decrease in notes and accounts payable
Increase in consumption taxes payable
Increase in other current liabilities
Other – net¥ 6,719
2,093
(193)
(1,145)
(417)
12508
339
33(2,951)(120)
103(532)
173
509
(3)

SubtotalInterest and dividends received
Interest paid
Income taxes paid

5,128418(12)(2,901)

Net cash provided by operating activities

2,632

Cash flows from investing activities
Deposit of funds into time deposits
Proceeds from withdrawal of time deposits
Proceeds from redemption of marketable securities
Purchases of investment securities
Proceeds from redemption and sale of investment securities
Purchases of tangible fixed assets
Proceeds from sale of tangible fixed assets
Purchases of intangible assets
Provision of loans
Collection of loans
Long-term prepaid expenses
Other – net
Net cash used in investing activities
Cash flows from financing activities
Net increase in short-term borrowings
Repayment of long-term debt
Cash dividend paid
Purchase of treasury stock
Other – net
Net cash used in financing activities
Foreign currency transaction adjustments on cash and cash equivalents

(70)
100
400
(36)
45(1,150)
35(84)(26)
71(2,206)0(2,921)30(881)(1,152)(83)
8(2,078)(518)

Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period(2,886)15,153

Cash and cash equivalents at end of period¥12,267