Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2018
November 9, 2017
Stock Exchange Listings : Tokyo 1st Section

Company name

: JMS Co., Ltd.

Securities code

: 7702(URL http://www.jms.cc/)

Representative: Hiroaki Okukubo, President and Representative Director

Inquiries: Masaki Endo, Executive Officer, Head of Business Administrative OfficeTEL: +81-82-243-5844

Quarterly statement filing date (as planned): November 13, 2017

Supplemental material of quarterly results: NoneConvening briefing of quarterly results: NonePayment date of cash dividends: December 8, 2017

(Note: Amounts below are rounded down to the nearest million yen)
1. Consolidated Financial Highlights for the Interim Period Ended September 2017 (From April 1, 2017 to September 30, 2017)(1) Consolidated Financial Results
Net sales

Operating income(%: change from the same previous period)
Profit attributable toowners of parent
Millions of yen
Millions of yen%%
Ordinary income

Millions of yen%

Millions of yen%

Six months ended September 30, 2017

27,402(0.4)

156(73.6)

334(52.2)

210(48.6)

Six months ended September 30, 2016

27,526

(2.2)

592

13.2

699

62.5

409

42.2

(Note)

Comprehensive income : Six months ended September 30, 2017 : 614 million yen 〔－%〕, Six months ended September 30, 2016 : (1,270) million yen 〔－%〕.
Diluted net income per share

Net income per share
Yen
8.65

Yen

Six months ended September 30, 2017
Six months ended September 30, 2016

16.82

－

(Note)－We have conducted a share consolidation of common stock of JMS Co., Ltd. (“the Company”) pursuant to which two (2) shares were consolidated into one (1)share effective as of October 1, 2017. Accordingly, the “Net income per share” has been calculated assuming that such share consolidation has been conducted at
the beginning of the previous fiscal year.

(2) Consolidated Financial Positions
Capital adequacy ratio

Net assets

Total assets
Millions of yen

Millions of yen%

As at September 30, 2017

65,61531,47747.8

As at March 31, 2017

65,681

31,061

47.1(Note)

Owner's equity : September 30, 2017 : 31,348 million yen,March 31, 2017 : 30,931 million yen.

2. Dividends
Dividend per share
1st quarter
Yen
Year ended March 31, 2017－

2nd quarter
Yen
4.00

Year ending March 31, 2018

－

4.00
－

Year ending March 31, 2018 (forecast)(Note)

3rd quarter
Fiscal year end
Yen
Yen
4.00
－

8.00

Total
Yen
8.00
－

Correction of dividend forecast from the most recent dividend forecast : None
We have conducted a share consolidation of common stock of the Company pursuant to which two (2) shares were consolidated into one (1) share effective as of
October 1, 2017. Please note that such share consolidation is taken into consideration in determining the amount of the year-end cash dividend per share for the
fiscal year ending March 31, 2018 (forecast) mentioned above and the total annual dividend amount is indicated as “–.” The year-end cash dividend per share andtotal annual dividend amount per share for the fiscal year ending March 31, 2018 (forecast), without taking into consideration of the share consolidation, are 4 yen
and 8 yen, respectively.

3. Consolidated Forecast for the Year Ending March 2018 (From April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Year ending March 31, 2018
(Note)

56,000Operating income%
0.8

Millions of yen
700%(36.7)

Ordinary income
Millions of yen
900%(38.0)(%: change from the same previous period)
Profit attributable to
Basic earnings
owners of parent
per share
Millions of yen
Yen
%
600

(49.3)

24.62

Correction of financial forecast from the most recent financial forecast. : Yes
We have conducted a share consolidation of common stock of the Company pursuant to which two (2) shares were consolidated into one (1) share effective as of
October 1, 2017. Please note that such share consolidation is taken into consideration in determining the amount of "Basic earnings per share".

The aforementioned projections are based on the information currently available, and may contain some uncertainties.
The final results might be significantly different from the aforementioned projections due to changes in business conditions.

Page 1 of 7

JMS (7702) Financial Results for the second Quarter of Fiscal Year Ending March 31, 2018

4. Overview of financial results for the second quarter(1) Overview of consolidated financial results
In regard to the business environment surrounding the JMS Group, while the medical device market keeps growing
especially in emerging countries, the competition among domestic and foreign manufacturers with more supply
capacity is intensifying in overseas markets. In Japan, while increasing access to the medical devices market bydifferent industries which has sought new growth potential in there, the strong demand for safety and quality of
medical devices keeps growing. The government continues to curb the rise in medical expenses under the healthcare
policy by increasing medical fees and decreasing drug/device prices, in the context of the aging society with low
birthrate and of worsening financial condition of the health insurance system.
In the given environment, JMS strives to enhance product development, production and sales as well as to improve
the quality of corporate management and the corporate value, in order ' To be a bridge for the people who give andseek medical care, and to bring a smile to people by contributing to a healthy and better life' under our Founding
Spirit of 'For People’s Precious Life'. From the first quarter, JMS has shifted to Business Unit (BU) type organization,and set three Business Units, 'Hospital Products BU' mainly handles infusion and enteral nutrition, 'Surgical &Therapeutical BU' mainly handles Dialysis and Cardiovascular, and 'Blood Management & Cell Therapy BU' mainly
handles Transfusion.
As a result of the abovementioned operations, JMS recorded consolidated net sales of 27,402 million yen in thisperiod, down 0.4% / 123 million yen (year-over-year).
The operating income totaled 156 million yen in this period, down 73.6% (year-over-year), due to the influence of
decreased sales and increase in selling cost. The addition of equity in earnings of affiliates resulted in an ordinary
income of 334 million yen, down 52.2% (year-over-year). The adjustment of income tax resulted in the profit
attributable to owners of parent of 210million yen, down 48.6% (year-over-year).

Business performance by geographical segment.
Due to the revision in the segment classification from this first quarter, the second quarter comparison and analysis
has been restated in accordance with these segment changes.
(i) Japan
Increased sales of Closed Mixing/Infusion System for Anticancer Drug “NEO SHIELD” was offset by the sales dropof Hemodialysis Machines, reducing net sales to 20,115 million yen, down 3.2% (year-over-year). Despite thedividend income from associated companies, the influence of decrease sales and the increase R&D cost resulted in a
profit of 196 million yen, down 37.1% (year-over-year), for this geographical segment.
(ii) Singapore
Increased sales of AV fistula needles for North America market raised net sales to 9,372 million yen, up 2.7%
(year-over-year). The decreased manufacturing cost and influence of foreign currency exchange resulted in a profit of
436 million yen, up 45.5% (year-over-year), for this geographical segment.
(iii) China
Decreased sales of Dialyzer for the domestic market reduced net sales to 1,761 million yen, down 11.6%(year-over-year).The influence of decreased sales as well as the increased selling cost resulted in a profit of 35
million yen, down 81.5% (year-over-year), for this geographical segment.
(iv) Philippines
Increased sales of Infusion Sets for Japan market raised net sales to 247 million yen (sales of 28 million yen in thesame period of the previous year).
The influence of increased sales reduced loss to 307 million yen, improved by 80 million yen (year-over-year), forthis geographical segment.

Page 2 of 7

The remaining geographical segments recorded net sales of 3,724 million yen, up 4.9% (year-over-year), and a profitof 153 million yen, down 23.2% (year-over-year).
The abovementioned figures do not include consumption tax, etc.

(2) Overview of the financial condition
Total assets as of the end of this period totaled 65,615 million yen, down 65 million yen from the end of the previous
consolidated fiscal year. The details of assets, liabilities and net assets are as shown below.
(Assets)
Current assets decreased to 36,111 million yen, down167 million yen from the end of the previous consolidated fiscal
year, mainly due to the decrease of cash and deposits.
Noncurrent assets increased to 29,503 million yen, up 101 million yen from the end of the previous consolidated
fiscal year, mainly due to the increase of investment securities.
(Liabilities)
Current liabilities decreased to 19,816 million yen, down 967 million yen from the end of the previous consolidated
fiscal year, mainly due to the decrease of notes and accounts payable - trade.
Non-current liabilities increased to 14,321 million yen, up 484 million yen from the end of the previous consolidated
fiscal year, mainly due to the increase of long-term loans payable.
(Net assets)
Net assets increased to 31,477 million yen, up 416 million yen from the end of the previous consolidated fiscal year,
mainly due to the fluctuation of foreign currency translation adjustment.
Note that the Capital adequacy ratio increased by 0.7 percentage points to 47.8%.
(3) Overview of consolidated business forecast
Consolidated business forecast for the fiscal year ending March 31, 2018 released on May 12, 2017 has been revised
as follows.
Revision of consolidated business forecasts for the FYE Mar. 2018
Previous
New forecast
Amount changed
Forecast (A)(B)(B – A)Net sales
57,00056,000(1,000)Operating income
1,150
700
(450)
Ordinary income
1,200
900
(300)
Profit attributable to
700
600
(100)
owners of parent(Unit: million yen)

Results for previous
FY ended Mar. 201755,574
1,106
1,451
1,182

The net sales was below the forecast due to the postponement in some of sales orders from customers in domestic
market to later in the year. The profit was also below the forecast due to the decrease in net sales although we haveproceeded to reduce the costs and expenses.
The assessment figures described on this forecast are based on available information at this moment, including
uncertain data. Actual results may be different from the figures.

Page 3 of 7

5. Consolidated Financial Statements

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,
2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investments and other assets, grossAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Page 4 of 7

As at September 30,
2017

6,270
15,357
71
7,193
2,162
3,676
1,626
(78)
36,2795,606
15,559
70
7,207
2,327
3,564
1,814
(38)
36,111

9,156
8,558
6,227
23,942
448

8,983
8,368
6,499
23,851
422

5,014
(3)
5,011
29,402
65,681

5,242
(12)
5,229
29,50365,615

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,
2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for product warranties
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

Page 5 of 7

As at September 30,
2017

8,855
3,990
2,052
316
8
1,085
4,476
20,784

8,078
4,050
2,609
188
8
1,087
3,794
19,816

11,645
92
651
236
1,210
13,836
34,62011,822
96
671
242
1,488
14,321
34,137

7,411
10,362
13,313(282)
30,8037,411
10,362
13,329(283)
30,819

439
(312)
127
130
31,061
65,681

604
(74)
529
128
31,47765,615

Consolidated Statements of Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Six months ended
September 30, 2016
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on abandonment of non-current assets
Loss on reduction of non-current assets
Loss on sales of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Six months ended
September 30, 201727,526
20,363
7,162
6,569
592

27,402
20,449
6,953
6,796
156

5
26
124
93
250

9
18
134
117
279

64
60
19
143
699

60
29
12
102
334

1
0
100
101

1
－
－
1

0
17
96
0
113
687
210
60
270
416

2
8
－
－
11
324
189
(76)
112
211

7
409

0
210

Consolidated Statements of Comprehensive Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Six months ended
September 30, 2016
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Page 6 of 7

Six months ended
September 30, 2017

416

211

(81)
(1,605)(1,687)(1,270)

165
237
402
614

(1,269)
(1)

615
(1)

Consolidated statements of cash flows
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using equity method
Loss (gain) on sales of non-current assets
Loss on abandonment of non-current assets
Loss on reduction of non-current assets
Loss (gain) on sales of investment securities
Subsidy income
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Page 7 of 7

Six months ended
September 30, 2016

Six months ended
September 30, 2017

687
1,463
0
20
(32)
64
370
(124)
(1)
17
96
0
(100)
(189)
(144)
(88)
424
45
(70)
49
2,487
32
(65)
100
(154)
2,399

324
1,508
(30)
25
(27)
60
(87)
(134)
1
8
－
－
－
(162)
40
(807)
(276)
(42)
138
(51)
487
28
(60)
200
(273)
381

(5)
－
(3,689)1(82)
0
3(3,772)(9)
5(1,723)
39
(45)
－
(33)
(1,766)

10,469(10,090)
2,573(1,516)
(0)
(290)
(4)
1,141
(485)
(717)
5,982
5,264

8,400
(8,340)
1,650
(812)
(0)
(195)
(24)
676
40
(668)
6,333
5,665