Financial Results for the Fiscal Year Ended March 31, 2014
May 08, 2014

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

Date of general shareholders' meeting (as planned): June 25, 2014

Annual securities report filing date (as planned): June 26, 2014

Supplemental material of annual results: NoneConvening briefing of annual results: NoneDividend payable date (as planned): June 26, 2014

(Note: Amounts below are rounded down to the nearest million yen)
1. Consolidated Financial Highlights for the Year Ended March 31, 2014

(From April 1, 2013 to March 31, 2014)(1) Consolidated Financial Results(%: change from the same previous period)
Net sales

Ordinary income

Operating income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended March 31, 2014

53,8609.8

900(43.5)

1,187(36.8)

207(83.8)

Year ended March 31, 2013

49,068

4.8

1,594

51.5

1,879

36.0

1,277

35.5

(Note)

Comprehensive income : Year ended March 31, 2014: 1,539 million yen 〔(45.7%)〕, Year ended March 31, 2013: 2,836 million yen 〔250.6%〕.
Net income per share

Net income per share,
fully diluted

Net income pershareholders' equity

Ordinary income per
total assets

Operating income per
net sales

%
0.7

%
2.3

%
1.7

4.7

3.9

3.2

Yen
4.25

Yen

Year ended March 31, 2014
Year ended March 31, 2013

29.41

－

(Note)－

Equity in earnings of affiliates : Year ended March 31, 2014: 137 million yen,

Year ended March 31, 2013: 179 million yen.

(2) Consolidated Financial Position
Total assets

Net assets

Net assets per share

Equity ratio

Millions of yen

Millions of yen%

Yen

As at March 31, 2014

53,222

30,61957.4

626.01As at March 31, 2013

51,286

29,46257.3

602.60(Note)

Shareholders' equity : As at March 31, 2014: 30,526 million yen,

As at March 31, 2013: 29,390 million yen.

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2014

1,206

(4,751)

1,219

1,995

Year ended March 31, 2013

2,545

(3,340)

1,262

4,152

2. Dividends
Total amount ofdividends(Annual)Dividends per share
1st quarter 2nd quarter 3rd quarter

Fiscal year end

Total

Dividend
pay-out ratio(Consolidated)

Ratio of dividends
to net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended March 31, 2013

－

4.00

－

4.00

8.00

367

27.2

1.4

Year ended March 31, 2014

－

4.00

－

4.00

8.00

390

188.2

1.3

Year ending March 31, 2015 (forecast)

－

4.00

－

4.00

8.00

48.8

3. Consolidated Forecast for the Year Ending March 31, 2015 (From April 1, 2014 to March 31, 2015)

Net sales
Millions of yen

Operating income

Half year ending September 30, 2014

26,800%4.2

Year ending March 31, 2015

56,000

4.0

Millions of yen%
400 103.7

1,200

33.2

Ordinary income
Millions of yen
500

%
12.5

1,400

17.9

(%: change from the same previous period)
Net income
Net income
per share
Yen
Millions of yen
%
49.4

6.15

800 285.7

300

16.41

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 10

4. Analysis of Business performance and fiscal status(1) Analysis of Business performance[Business performance of this fiscal year]
In regard to the business environment surrounding the JMS Group, competition is intensifying in overseas markets,
due to business integration for advantage of scale by the Western major companies based on firm demand expansion
in both advanced countries and emerging countries. In Japan, the government continues to curb the rise in medical
expenses under the healthcare policy, in the context of the aging society with low birthrate and of worsening financial
condition of the health insurance system. Yet, new markets are also emerging amidst calls for medical devices andvarious services to cater to the aging society.
In the given environment, JMS is striving to deliver goods and services for 'medical safety', 'medical efficiency','regenerative medicine' and 'improving the quality of life (QOL) for people requiring medical services' under the
corporate philosophy of 'Patient Comes First'. Product development, production and sales are promoted to boost
revenue in products, which are categorized 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 both hemodialysis and peritoneal dialysis for contributing to 'medical efficiency', and'Cardiovascular' mainly promotes value-added products such as membrane oxygenators and cardiopulmonary bloodtubing sets.
As a result of the abovementioned operations as well as the influence of exchange conversion by the weak yen, JMS
recorded consolidated net sales of 53,860 million yen in this period, up 9.8% / 4,791 million yen (year-over-year).
The operating income totaled 900 million yen, down 43.5%, due to the depreciation cost of automated equipments for
production enhancement as well as the increase of selling expenses such as commission and transportation fees etc.
The equity in earnings of affiliates and foreign exchange gains resulted in the ordinary income of 1,187 million yen,down 36.8%. The increase of tax expense due to the reversal of deferred tax assets under tax effect accounting
resulted in the net income of 207 million yen in this period, down 83.8% (year-over-year).
Business performance by geographical segment.
(i) Japan
Continued growth in the sales of enteral nutrition products and medical gloves as well as hemodialysis machines withnew features brought net sales to 41,049 million yen, up 3.2%. Increase of depreciation cost from investment for
facilities as well as increase in import cost with weaker Yen resulted in a profit of 939 million yen, down 33.8%(year-over-year), for this geographical segment.
(ii) Southeast Asia
Positive sales of apheresis kits for an OEM customer as well as blood bags for Japan boosted net sales to 16,733
million yen, up 15.4%. Increase of labor costs resulted in a loss of 303 million yen, down 370 million yen(year-over-year), for this geographical segment.
(iii) China
Continued growth in the sales of AV fistula needles for Western and the domestic markets raised net sales to 3,770
million yen, up 18.3%. Decline in conversion amount of net sales into Yuan resulted in a loss of 20 million yen,down 55.9% (year-over-year), for this geographical segment.
(iv) Germany
Despite the sales drop of AV fistula needles for the domestic markets, strong sales of dialysis therapy chairs for the
Middle East raised net sales to 3,032 million yen, up 18.9%. Lower import cost with stronger Euro led to a profit of
331 million yen, up 183.8% (year-over-year), for this geographical segment.

Page 2 of 10

(v) The United States
Positive sales of blood bags for Latin America as well as AV fistula needles for the domestic markets boosted net
sales to 2,705 million yen, up 26.7%. Dividends income led to a profit of 188 million yen, up 63.9%(year-over-year), for this geographical segment.
The remaining geographical segments recorded net sales of 1,611 million yen, up 30.3%, and a profit of 63 million
yen, down 12.1%.
The abovementioned figures do not include consumption tax, etc.

[Future outlook]
Greater expansion into overseas markets is anticipated both in emerging countries, which see their medical spending
grow to correspond to income rise, and are working on improving / enhancing their medical care systems, and inindustrialized nations, which are experiencing aging population and embracing improvement in advanced medicalcare. In Japan, however, competition is expected to intensify further due to the growing difficulty in financing thenation’s medical insurance scheme. In the given environment, the JMS Group will actively work on the fields of
medical safety, medical efficiency, regenerative medicine and improving the quality of life (QOL) for people
requiring medical services to reinforce its profit-generating foundation on the global scale.
The Consolidated business forecast is as shown below:< Consolidated business forecast >(Unit: million yen)
Result of
Forecast of
Changes from same
last fiscal year
current fiscal year
previous period
ended Mar. 2014
ending Mar. 2015
Net sales
53,86056,000
4.0%
Operating income
900
1,200
33.2%
Ordinary income
1,187
1,400
17.9%
Net income
207
800
285.7%
Exchange rate for the forecast: 1USD=100yen, 1EUR=134yen, 1SGD=81yen.

(2) Analysis on the business results[Overview of the status of assets, liabilities and net assets]
Gross assets as of the end of this period totaled 53,222 million yen, up 1,936 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 30,766 million yen, down 278 million yen from the end of the previous consolidated
fiscal year, mainly due to the decrease of cash and deposits.
Noncurrent assets grew to 22,456 million yen, up 2,214 million yen from the end of the previous consolidated fiscal
year, mainly due to the acquisition of tangible noncurrent assets.
(Liabilities)
Current liabilities increased to 18,342 million yen, up 455 million yen from the end of the previous consolidated
fiscal year, mainly due to the increase of short-term loans payable.
Noncurrent liabilities increased to 4,261 million yen, up 324 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 stand at 30,619 million yen, up 1,156 million yen from the end of the previous consolidated fiscal year,
mainly due to the foreign currency translation adjustment.
Note that the equity ratio raised 0.1 percentage points to 57.4%. Net assets per share increased to 626.01 yen, up
23.41 yen from the end of last fiscal year.

Page 3 of 10

5. Management Policy[The company’s challenges]
We face increasingly severe competition driven by local and foreign manufacturers in the business environment
surrounding JMS Group while the healthcare markets grow mainly in emerging countries along with their economic
growth. In the industrialized nations which are experiencing aging population, we still confront tough situation as
the governments undergo continuous cost cutting in the medical service fee and reimbursement price foreseeing
serious difficulties in increasing financial burdens because the medical expenditures have been increasing due to thedevelopment of advanced medical technologies and more application of minimally-invasive treatments. In the given
circumstance, JMS Group is taking following responses to create and provide truly useful “value” for the medical
professionals in order to solve their on-site problems.
(Developing products that can contribute to medical safety and efficiency)
Under the corporate philosophy of “Patient Comes First”, JMS will continue developing products for preventing
infections and medical accidents to achieve “medical safety”, products for facilitating hospital / in-home treatment
and care to contribute to “medical efficiency” and “reduction of medical cost”, needed on the medical frontline, andproducts for assisting patients’ recovery by their own to support “QOL improvement”. We will also actively workon developing products to lead new medical care in future-oriented fields such as “regenerative medicine”.
(Production streamlining)
In regard to production, JMS Group will make continued efforts to streamline production and gain technologicalinnovation so as to achieve further quality stability, cost reduction and higher product competitiveness. At the sametime, an efficient logistic structure is to be built and maintained to deliver safe and secure products to patients andhealthcare workers across the world.
(Initiatives for global business deployment)
Given the varying selection criteria in different countries and regions, JMS will tap into its product strengths andtechnological expertise as well as seeking business alliance with leading companies within and outside Japan toactively deliver medical equipment that suits the medical needs of individual countries.

Page 4 of 10

6. Consolidated Financial Statements

Consolidated balance sheet
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,
2013
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
LandConstruction 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 5 of 10

As at March 31,
2014

4,153
15,026
5,214
1,973
3,571
515
594
(5)
31,044

1,997
16,211
5,608
2,330
3,668
171
785
(7)
30,766

14,448(10,298)
4,150
22,168(16,882)
5,286
9,497
(7,322)
2,174
2,738
1,678
16,029734

15,235(10,820)
4,414
23,525(17,429)
6,095
10,220(7,767)
2,452
2,779
2,414
18,156
730

2,746
118
616
(4)
3,477
20,241
51,286

2,925
113
534
(3)
3,569
22,45653,222

Consolidated balance sheet
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,
2013
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
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
Deferred tax liabilities
Provision for retirement benefits
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

Page 6 of 10

As at March 31,
2014

7,474
3,237
1,386
3,148
503
－
6
1,002
21
1,105
17,886

7,705
4,681
1,363
2,415
314
5
9
1,040
－
804
18,342

2,393
478
447
51
－
146
418
3,936
21,823

2,632
487
－
71
472
246
351
4,261
22,6037,411
10,362
12,687(271)
30,1897,411
10,362
12,504(274)
30,003286(1,084)－(798)
71
29,462
51,286

354
169
(0)
523
92
30,61953,222

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
House rent income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance cost
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on abandonment of non-current assets
Loss on abandonment of inventories
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

Year ended March 31,
2013
49,06835,63013,438
11,844
1,594

Year ended March 31,
2014
53,86040,237
13,622
12,721
900

7
22
179
15
141
96
462

6
63
137
13
134
131
488

75
18
54
27
177
1,879

71
－
86
43
201
1,187

1
2
4

11
45
57

3
50
－
54
1,829
692
(143)
548
1,281
3
1,277

8
87
167
263
981
439
324
764
217
9
207

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

Income before minority interests
Other 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 minority interests

Page 7 of 10

Year ended March 31,
2013
1,281

Year ended March 31,
2014
217

254
1,300
1,554
2,836

68
1,254
1,322
1,539

2,821
14

1,518
20

Consolidated statements of changes in net assets
Year ended March 31, 2013
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity

6,522

9,473

11,755(270)

27,481888

888

Capital stock
Balance at the beginningof current period
Changes of items during
the period
Issuance of new shares

1,777

Dividends from surplus

(345)

(345)

Net income

1,277

1,277

Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

(1)

(1)
―

888

888

932

(1)

2,708

7,411

10,362

12,687(271)

30,189Valuation and translation adjustments
Valuation difference Foreign currency Remeasurements of Total valuation and Minority interests
on available-for-saletranslation
defined benefit
translation
securities
adjustmentplans
adjustments
Balance at the beginningof current period
Changes of items during
the period

31(2,385)―(2,353)56

Total net assets

25,184Issuance of new shares

1,777

Dividends from surplus(345)

Net income

1,277

Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

(1)
―
254

1,300

―

1,554

14

1,569

254

1,300

―

1,554

14

4,277

286

(1,084)

―

(798)

71

29,462

Page 8 of 10

Consolidated statements of changes in net assets
Year ended March 31, 2014
(Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginningof current period
Changes of items during
the period

7,411

Capital surplus

Retained earnings

Treasury stock

Total shareholders'equity10,362

12,687(271)

30,189Issuance of new shares―

Dividends from surplus

(390)

(390)

Net income

207

207

Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

(3)

(3)

(0)

0

0

―

―

(182)

(2)

(185)

7,411

10,362

12,504(274)

30,003

Valuation and translation adjustments
Valuation difference Foreign currency Remeasurements of Total valuation and Minority interests
on available-for-saletranslation
defined benefit
translation
securities
adjustmentplans
adjustments
Balance at the beginningof current period
Changes of items during
the period286(1,084)

―

(798)

71

Total net assets

29,462Issuance of new shares―

Dividends from surplus(390)

Net income

207

Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

(3)
0
68

1,254

(0)

1,321

20

1,342

68

1,254

(0)

1,321

20

1,156

354

169

(0)

523

92

30,619Page 9 of 10

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

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
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 (profit) loss of entities accounted for using equity method
Share issuance cost
Loss (gain) on sales of non-current assets
Loss on abandonment of non-current assets
Loss (gain) on sales of investment securities
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
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
Purchase of investment securities
Proceeds from sales of investment securities
Collection of loans receivable
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 issuance of common shares
Proceeds from sales of treasury shares
Purchase of treasury shares
Cash dividends paid
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 10 of 10

Year ended March 31,
2013

Year ended March 31,
2014

1,829
1,715
(3)
168
14
－
(29)
75
(7)
(179)
18
1
50
(2)
324
(1,074)
96
24
(99)
84
115
3,125
99
(77)
(602)
2,545

981
2,249
0
－
5
(1)
(70)
71
(51)
(137)
－
(3)
87
(45)
(838)
(407)
149
103
(128)
(158)
(19)
1,784
124
(72)
(630)
1,206

(0)
4
(3,177)
2
(120)
(2)
33
25
(105)
(3,340)－－(4,551)
24
(169)
(2)
63
－
(116)
(4,751)15,800(15,883)
1,300(1,365)
1,758
－
(1)
(345)
1,262
215
683
3,468
4,152

17,477(16,062)
1,734(1,536)
－
0
(3)
(390)
1,219
169
(2,156)
4,152
1,995