Financial Results for the Fiscal Year Ended March 31, 2018
May 11, 2018
Stock Exchange Listings : Tokyo 1st Section
Company name
: JMS Co., Ltd.
(URL http://www.jms.cc/)
Securities code
: 7702
Representative: Hiroaki Okukubo, President and Representative Director
Inquiries: Masaki Endo, Executive Officer, Head of Business Administrative OfficeTEL: +81-82-243-5844
Date of general shareholders' meeting (as planned): June 21, 2018
Annual securities report filing date (as planned): June 22, 2018
Dividend payable date (as planned)
Supplemental material of annual results: NoneConvening briefing of annual results: None: June 22, 2018

(Note: Amounts below are rounded down to the nearest million yen)
(From April 1, 2017 to March 31, 2018)(%: change from the same previous period)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen
Millions of yen
Millions of yen
%
%
%
%
631
573
(48.1)(46.6)
1.7
820(43.5)(3.6)(22.2)
15.9
1,182
56.7
1,106
1,451

1. Consolidated Financial Highlights for the Year Ended March 31, 2018
(1) Consolidated Financial Results
Net sales

Millions of yen
Year ended March 31, 2018
56,52055,574
Year ended March 31, 2017
(Note) Comprehensive income : Year ended March 31, 2018: 880 million yen 〔37.5%〕, Year ended March 31, 2017: 640 million yen 〔－%〕.

Ordinary income toOperating income to
Diluted earnings
Rate of return on equity
total assets ratio
net sales ratio
per share
Yen
Yen
%
%
%
1.2
1.0
Year ended March 31, 2018
25.91
2.0
－
2.0
Year ended March 31, 2017
48.51
3.8
2.2
－
(Note) Equity in earnings of affiliates : Year ended March 31, 2018: 323 million yen, Year ended March 31, 2017: 245 million yen.
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.
Basic earnings per share(2) Consolidated Financial Position
Total assets

Capital adequacy ratio

Net assets

Net assets per share

Millions of yen
Millions of yen%
Yen
67,72731,549As at March 31, 2018
46.4
1,289.55
As at March 31, 2017
65,681
31,061
1,269.31
47.1(Note) Owner's equity : As at March 31, 2018: 31,422 million yen, As at March 31, 2017: 30,931 million yen.
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.
(3) Consolidated Cash Flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows fromoperating activities
Millions of yen
2,666
4,675

Cash flows frominvesting activities
Millions of yen(3,203)(4,809)Cash flows fromfinancing activities
Millions of yen
1,420
644

Cash and cash equivalents
at end of period
Millions of yen
7,220
6,333

2. Dividends
Dividends per share
Total dividend paid
1st quarter 2nd quarter 3rd quarter

Year end

AnnualPayout ratio(Consolidated)

Ratio of total amount ofdividends to net assets(Consolidated)

Yen
Yen
Yen
Yen
Yen
Millions of yen
%
%
4.00
8.00
389
33.0
Year ended March 31, 2017
4.00
1.3
－
－
8.00
61.8
389
Year ended March 31, 2018
4.00
1.3
－
－
－
8.00
48.7
Year ending March 31, 2019 (forecast)
8.00
16.00
－
－
(Note) 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 ended March 31, 2018
mentioned above and the total annual dividend amount is indicated as “–”. The year-end cash dividend per share and total annual dividend amount per share for the fiscal year ended
March 31, 2018, without taking into consideration the share consolidation, are 4 yen and 8 yen, respectively.
3. Consolidated Forecast for the Year Ending March 31, 2018 (From April 1, 2017 to March 31, 2018)

Half year ending September 30, 2017
Year ending March 31, 2018

Net sales
Millions of yen
28,00058,000%
4.7
2.6

Operating profit
Millions of yen%
350 123.2
1,000 74.3

Ordinary profit
Millions of yen%
450 34.6
1,200 46.3(%: change from the same previous period)
Basic earnings per
Profit attributable toMillions of yen
Yen
%
12.31
300 42.4
800 26.7
32.83

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 9

JMS (7702) Financial Results for the Fiscal Year Ended March 31, 2018

4. Overview of business performance(1) Overview of business performance of this fiscal year
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 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 &Therapy BU' mainly handles Dialysis and Cardiovascular, and 'Blood Management & Cell Therapy BU' mainly
handles Blood Transfusion.
As a result of the abovementioned operations, JMS recorded consolidated net sales of 56,520 million yen in thisperiod, up 1.7% / 945 million yen (year-over-year).
The operating profit totaled 573 million yen in this period, down 48.1% (year-over-year), due to the increase in laborcost, selling cost and R&D cost. The addition of share of profit of entities accounted for using equity method wasoffset by the increased foreign exchange losses resulted in an ordinary profit of 820 million yen, down by 43.5%(year-over-year). The adjustment of income tax resulted in the net profit attributable to the profit attributable toowners of parent of 631million yen, down by 46.6% (year-over-year).

Business performance by geographical segment.
Due to the revision in the segment classification from this fiscal year, the fiscal year (accumulated) comparison andanalysis has been restated in accordance with these segment changes.
(i) Japan
Increased sales of Closed Mixing/Infusion System for Anticancer Drug “NEO SHIELD” and Single Patient Dialysis
Machines for Asia market were offset by the sales drop of intersegment transactions, reducing net sales to 41,214
million yen, down by 1.6% (year-over-year). Despite the dividend income from affiliated companies, the influence of
decrease sales and the increase R&D cost resulted in a profit of 795 million yen, down by 0.2% (year-over-year), forthis geographical segment.
(ii) Singapore
Increased sales of Apheresis kits for North America market raised net sales to 18,975 million yen, up by 4.9%
(year-over-year). The influence of increased labor cost and influence of foreign currency exchange resulted in a profitof 656 million yen, down by 17.3% (year-over-year), for this geographical segment.
(iii) China
Decreased sales of Dialyzer for the domestic market reduced net sales to 3,585 million yen, down by 9.2%
(year-over-year).The influence of decreased sales and the increase of selling cost resulted in a profit of 27 million yen,down by 90.8% (year-over-year), for this geographical segment.
(iv) Philippines
Increased sales of Infusion Sets for Japan market raised net sales to 682 million yen, up by 246.3% (year-over-year).
The influence of increased sales reduced loss to 629 million yen, improved by 77 million yen (year-over-year), forthis geographical segment.

Page 2 of 9

The remaining geographical segments recorded net sales of 7,765 million yen, up by 10.5% (year-over-year), and net
profit of 308 million yen, up by 26.1% (year-over-year).
The abovementioned figures do not include consumption tax, etc.

[Future outlook]
The environment surrounding in Japan seems to continue to worsen that the government continues the healthcare
policy to restrain medical expenditures and so the expectations to reduce costs in medical equipments will also be
rising from medical institution. On the other hand, in overseas, there is a growing need for medical care and business
opportunities of medical devices especially in developing countries with economic development.
Amidst this environment, our corporate group will work on developing products that can contribute to “Medical
safety and efficiency” and “Improving Quality of Life”, production streamlining and global business deployment withthe aim of providing products and services that can contribute to a healthy and better life by serving as a bridge
between those who need medical care and those who provide it.
< Consolidated business forecast >(Unit: million yen)
Result oflast fiscal year
ended Mar. 2018
56,520

Forecast of
current fiscal year
ending Mar. 2019
58,000Operating profit

573

1,000

74.3%

Ordinary profit

820

1,200

46.3%

Net sales

Changes from same
previous period

Profit attributable to631
800
owners of parent
Exchange rate for the forecast: 1USD=105yen, 1EUR=130yen, 1SGD=82yen.

2.6%

26.7%

(2) Overview of the financial condition
Total assets as of the end of this period totaled 67,727 million yen, up by 2,046 million yen from the end of theprevious fiscal year. The details of assets, liabilities and net assets are as shown below.
(Assets)
Current assets increased to 38,417 million yen, up by 2,138 million yen from the end of the previous fiscal year,
mainly due to the increase of notes and accounts receivable – trade.
Non-current assets decreased to 29,309 million yen, down by 92 million yen from the end of the previous fiscal year,
mainly due to the decrease of property, plant and equipment.
(Liabilities)
Current liabilities increased to 21,508 million yen, up by 724 million yen from the end of the previous fiscal year,
mainly due to the increase of current portion of long-term loans payable.
Non-current liabilities increased to 14,669 million yen, up by 833 million yen from the end of the previous fiscal year,
mainly due to the increase of lease obligations.
(Net assets)
Net assets increased to 31,549 million yen, up by 488 million yen from the end of the previous fiscal year, mainly due
to the increase of retained earnings.
Note that the capital adequacy ratio decreased by 0.7 percentage points to 46.4%.

Page 3 of 9

5. Consolidated Financial Statements

Consolidated balance sheet
JMS 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
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Page 4 of 9

As at March 31,
2018

6,270
15,357
71
7,193
2,162
3,676
523
1,102
(78)
36,2797,162
16,452
71
7,438
2,331
3,409
820
761
(29)
38,417

20,753(11,596)
9,156
28,687(20,150)
8,536
11,347(8,989)
2,357
2,653
163
(10)
152
1,085
23,942448

20,729(12,076)
8,652
28,758(21,020)
7,738
11,744(9,328)
2,415
2,667
753
(62)
691
1,159
23,324
438

3,490
154
1,368
(3)
5,011
29,402
65,681

3,875
174
1,509
(12)
5,546
29,30967,727

Consolidated balance sheet
JMS 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
Lease obligations
Accounts payable - other
Income taxes payable
Deferred tax liabilities
Provision for product warranties
Provision for bonuses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
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 9

As at March 31,
2018

8,855
3,990
2,052
23
3,108
316
－
8
1,085
－
1,343
20,784

8,609
4,110
2,926
126
3,240
198
27
8
1,041
135
1,086
21,508

11,645
142
642
92
651
236
425
13,836
34,62011,959
582
745
103
751
106
419
14,66936,177

7,411
10,362
13,313(282)
30,8037,411
10,362
13,554(283)
31,044

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

551
(173)
378
127
31,54967,727

Consolidated statements of income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
Year ended March 31,
2017Year ended March 31,
201855,574
41,13914,435
13,3291,10656,52042,23814,282
13,708
573

10
41
245
9
71
151
530

15
33
323
9
45
119
547

126
14
44
185
1,451

128
130
42
300
820

11
0
800
811

21
－
－
21

0
289
118
755
0
1,163
1,100
369
(461)
(91)
1,191
9
1,182

6
44
50
－
－
101
740
345
(234)
111
629
(2)
631

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
House rent income
Subsidy income
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
Impairment loss
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 (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Consolidated statements of comprehensive income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)

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 9

Year ended March 31,
2017Year ended March 31,
2018

1,191

629

68
(620)
(551)
640

112
138
250
880

627
12

882
(2)

Consolidated statements of changes in net assets
Year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

7,411

Retained earnings

10,362

12,618Treasury shares(280)

Total shareholders'equity30,111

Changes of items during
periodDividends of surplus

(487)

(487)

Profit attributable toowners of parent

1,182

1,182

Purchase of treasury shares

(2)

(2)

Disposal of treasury shares―

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

―

―

694

(2)

692

7,411

10,362

13,313(282)

30,803

Accumulated other comprehensive income
Total accumulated
Valuation difference Foreign currency
othertranslation
on available-for-salecomprehensive
securities
adjustment
incomeBalance at beginning ofcurrent period

370

308

678

Non-controllinginterests

117

Total net assets

30,907

Changes of items during
periodDividends of surplus(487)

Profit attributable toowners of parent

1,182

Purchase of treasury shares(2)

Disposal of treasury shares―

Net changes of items otherthan shareholders' equity

68

(620)

(551)

12

(539)

Total changes of items during
period

68

(620)

(551)

12

153

Balance at end of current
period

439

(312)

127

130

31,061Page 7 of 9

Consolidated statements of changes in net assets
Year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

7,411

Retained earnings

10,362

13,313

Total shareholders'equityTreasury shares(282)

30,803

Changes of items during
periodDividends of surplus

(389)

(389)

Profit attributable toowners of parent

631

631

Purchase of treasury shares
Disposal of treasury shares

(1)

(1)

(0)

0

0

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

―

―

241

0

240

7,411

10,362

13,554(283)

31,044

Accumulated other comprehensive income
Total accumulated
Valuation difference Foreign currency
othertranslation
on available-for-salecomprehensive
securities
adjustment
incomeBalance at beginning ofcurrent period

439

(312)

127

Non-controllinginterests

130

Total net assets

31,061

Changes of items during
periodDividends of surplus(389)

Profit attributable toowners of parent

631

Purchase of treasury shares(1)

Disposal of treasury shares0

Net changes of items otherthan shareholders' equity

112

138

250

(2)

248

Total changes of items during
period

112

138

250

(2)

488

Balance at end of current
period

551

(173)

378

127

31,549Page 8 of 9

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

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) 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
Proceeds from sales of treasury shares
Purchase of treasury shares
Cash dividends paid
Proceeds from sales and leasebacks
Repayments of lease obligations
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 9 of 9

Year ended March 31,
2017Year ended March 31,
2018

1,100
2,972
289
0
7
(13)
(52)
126
47
(245)
(11)
118
755
0
(800)
(19)
(770)
321
622
(21)
70
191
4,689
126
(127)
265
(278)
4,675

740
3,059
44
(37)
1
123
(49)
128
(54)
(323)
(14)
50
－
－
－
(1,079)
(93)
(259)
(280)
342
635
(64)
2,870
148
(127)
200
(424)
2,666

(5)
－
(4,744)
14
(98)
0
23
(4,809)(10)
5(2,800)
72
(136)
－
(333)
(3,203)

18,400(18,400)
3,316(2,168)
－
(2)
(485)
－
(17)
644
(157)
351
5,982
6,333

16,321(16,201)
3,326(1,927)
0
(1)
(390)
353
(61)
1,420
4
887
6,333
7,220