Financial Results for the First Quarter of Fiscal Year Ending March 31, 2016
August 7, 2015
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 DirectorInquiries: Masaki Endo, Executive Officer, Head of Business Administrative OfficeTEL: +81-82-243-5844

Quarterly statement filing date (as planned): August 11, 2015

Supplemental material of quarterly results: NoneConvening briefing of quarterly results: None: －Payment date of cash dividends(Note: Amounts below are rounded down to the nearest million yen)
1. Consolidated Financial Highlights for the Interim Period Ended June 2015 (From April 1, 2015 to June 30, 2015)(1) Consolidated Financial Results
Net sales

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

Millions of yen%

Millions of yen%Three months ended June 30, 2015

13,841

13.1

57

－

(11)

－

14－

Three months ended June 30, 201412,236

(2.0)

(182)

－(128)

－

(253)

－

(Note)

Comprehensive income : Three months ended June 30, 2015 : 239 million yen 〔－%〕, Three months ended June 30, 2014 : (454) million yen 〔－%〕.
Net income per share

Diluted net income per share

Yen
0.30

Yen

Three months ended June 30, 2015
Three months ended June 30, 2014(5.21)－－(2) Consolidated Financial Positions
Total assets

Net assets

Capital adequacy ratio

Millions of yen

Millions of yen%

As at June 30, 2015

61,992

31,57450.7

As at March 31, 2015

60,452

31,53052.0(Note)

Owner's equity : June 30, 2015 : 31,458 million yen, March 31, 2015 : 31,418 million yen.

2. Dividends
Dividend per share
1st quarter
Yen
Year ended March 31, 2015－

Year ending March 31, 2016－

2nd quarter
Yen
4.00

Year ending March 31, 2016 (forecast)(Note)

4.00

3rd quarter
Fiscal year end
Yen
Yen
4.00
－－

4.00

Total
Yen
8.00

8.00

Correction of dividend forecast from the most recent dividend forecast : None

3. Consolidated Forecast for the Year Ending March 2016 (From April 1, 2015 to March 31, 2016)

Net sales
Millions of yen

Operating income

Half year ending September 30, 2015

28,000%
6.7

Year ending March 31, 2016

58,0004.7(Note)

Ordinary income

Millions of yen%
250 442.6
700

84.7

Millions of yen%
300 109.7
800 114.3(%: change from the same previous period)
Profit attributable toNet income
owners of parent
per share
Millions of yen
Yen%
150 106.2

3.08

500 259.5

10.26

Correction of financial forecast from the most recent financial forecast. : None

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 6

JMS (7702) Financial Results for the first Quarter of Fiscal Year Ending March 31, 2016

4. Overview of financial results for the first quarter(1) Overview of consolidated financial results
In regard to the business environment surrounding the JMS Group, the medical market keeps growing mainly inemerging countries, and the competition among domestic and foreign manufacturers is intensifying in overseas
markets. In Japan, newly legislated “the Pharmaceuticals, Medical devices and Other Therapeutic Products Act”
accelerates the new market access from outside industry and the growth of demand to safety and quality for medicaldevices. In the meantime the government continues to curb the rise in medical expenses under the healthcare policyby 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 for 'medical safety', 'medical efficiency', 'regenerative medicine' and'improving the quality of life (QOL) for people requiring medical services' under our Founding Spirit of 'For People’s
Precious Life'. Product development, production and sales are promoted to boost revenue in products, which arecategorized into four system groups. 'Infusion and Transfusion' and 'General Medical Supplies' mainly handle
infusion and enteral nutrition for contributing to 'medical safety', while 'Dialysis' mainly offers products for bothhemodialysis and peritoneal dialysis for contributing to 'medical efficiency', and 'Cardiovascular' mainly promotes
value-added products such as membrane oxygenators and cardiopulmonary blood tubing sets.
As a result of the abovementioned operations, JMS recorded consolidated net sales of 13,841 million yen in thisperiod, up 13.1% / 1,605 million yen (year-over-year).
Despite the increase of purchasing cost with weak yen, the operating income totaled 57 million yen (operating loss of
182 million yen in the same period of the previous year), due to the influence of increased sales. The addition ofequity in earnings of affiliates was offset by the loss of abandonment of inventories, resulting in an ordinary loss of
11 million yen (ordinary loss of 128 million yen in the same period of the previous year). The addition of deferred
tax assets resulted in the net income attributable to equity holders of the parent company of 14 million yen (net lossof 253 million yen in the same period of the previous year).

Business performance by geographical segment.
(i) Japan
Increased sales of hemodialysis machines as well as launch of blood bags with leukocyte reduction filter raised net
sales to 9,954 million yen, up 12.3% (year-over-year). Despite the influence of sales increase, the loss ofabandonment of inventories resulted in a loss of 200 million yen (loss of 271 million yen in the same period of theprevious year), for this geographical segment.
(ii) Southeast Asia
Continued growth in the sales of apheresis kits raised net sales to 5,070 million yen, up 20.6% (year-over-year).
Increase of labor cost resulted in a loss of 44 million yen (loss of 51 million yen in the same period of the previousyear), for this geographical segment.
(iii) China
Despite the sales drop of AV fistula needles for the domestic market, increase of yen equivalent by weak yen raised
net sales to 932 million yen, up 8.4% (year-over-year). Decrease of profit from the sales on a yen basis transaction
resulted in a loss of 29 million yen, down 78 million yen (year-over-year), for this geographical segment.
(iv) Germany
Increased sales of dialysis therapy chairs for Australian market was offset by decrease of sales in yen equivalent by
weak yen, reducing net sales to 799 million yen, down 2.4% (year-over-year). Higher import cost with weak Euro
resulted in a profit of 61 million yen, down 34.2%, for this geographical segment.

Page 2 of 6

(v) The United States
Strong sales of AV fistula needles for North America market raised net sales to 742 million yen, up 30.3%(year-over-year). Despite the increase of selling costs, influence of sales increase raised net profit of 12 million yen,up 126.4%, for this geographical segment.
The remaining geographical segments recorded net sales of 520 million yen, up 18.3% (year-over-year), and a profitof 30 million yen, down 14.9%.
The abovementioned figures do not include consumption tax, etc.

(2) Overview of the business results
Gross assets as of the end of this period totaled 61,992 million yen, up 1,539 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 increased to 35,220 million yen, up 788 million yen from the end of the previous consolidated fiscal
year, mainly due to the increase of cash and deposits.
Noncurrent assets grew to 26,772 million yen, up 750 million yen from the end of the previous consolidated fiscal
year, mainly due to the acquisition of tangible noncurrent assets.
(Liabilities)
Current liabilities decreased to 19,310 million yen, down 1,299 million yen from the end of the previous consolidated
fiscal year, mainly due to the decrease of notes payable-equipment.
Noncurrent liabilities increased to 11,107 million yen, up 2,795 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 31,574 million yen, up 43 million yen from the end of the previous consolidated fiscal year,
mainly due to the increase of valuation difference on available-for-sales securities.
Note that the equity ratio declined by 1.3 percentage points to 50.7%.

(3) Overview of consolidated business forecast
Consolidated business forecast for the fiscal year ending March 31, 2016 released on May 8, 2015 has not beenrevised, as the overall business environment remained unclear.

Page 3 of 6

5. Consolidated Financial Statements

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,2015Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
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 6

As at June 30,
2015

4,711
16,233
6,863
2,342
3,254
1,120(94)34,431

5,769
15,730
7,091
2,347
3,353
1,023
(95)
35,2207,464
13,59021,055627

7,588
13,89921,488
601

4,341
(3)
4,337
26,02160,452

4,686
(3)
4,682
26,772
61,992

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,2015
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
Asset retirement obligations
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 6

As at June 30,
2015

8,264
4,770
1,627
54
9
1,094
21
4,767
20,609

7,946
4,268
1,720
47
9
657
21
4,640
19,310

6,374
85
675
236
940
8,312
28,922

9,101
75
699
240
990
11,10730,418

7,411
10,362
12,253(277)
29,7497,411
10,362
12,073(278)
29,568

528
1,140
1,668
112
31,53060,452

704
1,185
1,889
115
31,574
61,992

Consolidated Statements of Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Three months ended
June 30, 2014
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
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
Loss on abandonment of inventories
Commission fee
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on abandonment of non-current assets
Total extraordinary losses
Loss before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Three months ended
June 30, 2015

12,236
9,199
3,037
3,220(182)

13,841
10,475
3,366
3,308
57

0
16
42
36
96

4
15
93
33
147

23
9－
3
642(128)

32
37
139
1
7217(11)00000
22(131)87
28
115(246)
6(253)

078(19)
43(81)(37)
18314

Consolidated Statements of Comprehensive Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Three months ended
June 30, 2014
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
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 6

Three months ended
June 30, 2015

(246)1875(283)0(207)
(454)

175
45－
220
239(465)10235
3