Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2020
November 11, 2019
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): November 13, 2019

Supplemental material of quarterly results: NoneConvening briefing of quarterly results: NoneDividend payable date (as planned): December 10, 2019

(Note: Amounts below are rounded down to the nearest million yen)
1. Consolidated Financial Highlights for the Interim Period Ended September 2019 (From April 1, 2019 to September 30, 2019)(1) Consolidated operating results(%: change from the same previous period)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen
Millions of yen
Millions of yen
Millions of yen%%%%
Six months ended September 30, 2019

28,7181.0817

66.6

956

61.1

637

49.5

Six months ended September 30, 2018

28,4263.7490

213.0

593

77.6

426

102.4

(Note)

Comprehensive income : Six months ended September 30, 2019 : 41 million yen 〔(88.9%)〕, Six months ended September 30, 2018 : 374 million yen 〔(39.0%)〕.

Diluted earnings per share

Basic earnings per share
Yen

Yen

Six months ended September 30, 2019

26.14

－

Six months ended September 30, 201817.50－(2) Consolidated financial positions
Total assets

Capital adequacy ratio

Net assets

Millions of yen

Millions of yen%

As at September 30, 2019

64,562

31,78149.0

As at March 31, 2019

67,32031,90047.2(Note)

Owner's equity : September 30, 2019 : 31,655 million yen, March 31, 2019 : 31,765 million yen.

2. Dividends
Dividend per share
1st quarter
Yen
Year ended March 31, 2019－

2nd quarter
Yen
8.00

Year ending March 31, 2020

－

8.00

Year ending March 31, 2020 (forecast)(Note)

3rd quarter
Yen－

Year end
Yen
8.00

AnnualYen
16.00

－

8.00

16.00

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

3. Consolidated Forecast for the Year Ending March 2020 (From April 1, 2019 to March 31, 2020)
Net sales
Millions of yen
Year ending March 31, 2020
(Note)

60,000Operating profit%
3.3

Millions of yen
1,800

Ordinary profit%
23.1

Millions of yen
2,000%
31.6(%: change from the same previous period)
Profit attributable to
Basic earnings
owners of parent
per share
Millions of yen
Yen%
1,400 20.7
57.43

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 7

JMS (7702) Financial Results for the second Quarter of Fiscal Year Ending March 31, 2020

4. Overview of financial results for the second quarter(1) Overview of consolidated financial results
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 and seek medical care, and tobring a smile to people by contributing to a healthy and better life' under our Founding Spirit of 'For People’s
Precious Life'. JMS has set up 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 andCardiovascular, and 'Blood Management & Cell Therapy BU' mainly handles Blood Transfusion.
JMS recorded consolidated net sales for the second quarter of 28,718 million yen, up by 1.0% / 292 million yen(year-over-year). The influence of increased sales and the improved factory utilization by expanding production
resulted in an operating profit of 817 million yen, up by 66.6% (year-over-year). The addition of share of profit ofentities accounted for using equity method resulted in an ordinary profit of 956 million yen, up by 61.1 %(year-over-year). Subtracting the tax expenses resulted in the profit attributable to owners of parent of 637 million
yen, up by 49.5% (year-over-year).
Business performance by geographical segment.
Japan
Increased sales of Closed Drug Mixing/Infusion System “NEO SHIELD” and Blood bags were offset by decreased
sales of Dysphagia related products which benefited from insurance coverage expansion in the last fiscal year,reducing net sales to 20,425 million yen, down by 1.9% (year-over-year). Despite the influence of decreased sales,
the factory utilization improvement due to expanding production of Nutrition-related products in preparation forswitching from existing standard products to new ISO standard products and the increase in dividend income fromaffiliated companies resulted in a profit of 664 million yen, up by 97.5% (year-over-year), for this geographicalsegment.
Singapore
Increased sales of Apheresis kits for the North America market and Blood bags for the Africa market raised net sales
to 9,825 million yen, up by 4.2% (year-over-year). The influence of increased sales resulted in a profit of 612 million
yen, up by 63.6% (year-over-year), for this geographical segment.
China
Decreased sales of Infusion Sets for the Japan market due to production transfer to the plant in Philippines reduced
net sales to 1,312 million yen, down by 14.5% (year-over-year). Despite the influence of decreased sales, thedecrease of expenses resulted in a loss of 1 million yen, improved by 2 million yen (year-over-year), for thisgeographical segment.
Philippines
Increased sales of Infusion Sets for the Japan market raised net sales to 1,322 million yen, up by 76.9%(year-over-year). The influence of increased sales reduced loss to 18 million yen, improved by 195 million yen(year-over-year), for this geographical segment.
Germany
Increased sales of Blood bags raised net sales to 1,561 million yen, up by 3.2% (year-over-year). Increased cost ofpurchase by influence of foreign currency exchange resulted in a profit of 108 million yen, down by 27.0%(year-over-year), for this geographical segment.
The remaining geographical segments recorded net sales of 2,495 million yen, up by 3.6% (year-over-year), and a
profit of 56 million yen, down by 13.0% (year-over-year).
The above-mentioned figures do not include consumption tax, etc.

Page 2 of 7

JMS (7702) Financial Results for the second Quarter of Fiscal Year Ending March 31, 2020

(2) Overview of the financial condition(i) Assets, Liabilities, Net assets
Total assets as of the end of this second quarter totaled 64,562 million yen, down by 2,757 million yen from the endof the previous consolidated fiscal year. The details of assets, liabilities and net assets are as shown below.
(Assets)
Current assets decreased to 35,002 million yen, down by 2,746 million yen from the end of the previous consolidated
fiscal year, mainly due to the decrease of cash and deposits by the repayment of loans payable.
Non-current assets decreased to 29,560 million yen, down by 11 million yen from the end of the previous
consolidated fiscal year.
(Liabilities)
Current liabilities decreased to 21,283 million yen, down by 1,379 million yen from the end of the previous
consolidated fiscal year, mainly due to the decrease of Current portion of long-term borrowings by the repayment ofloans payable.
Non-current liabilities decreased to 11,497 million yen, down by 1,259 million yen from the end of the previous
consolidated fiscal year, mainly due to the decrease of long-term loans payable by the transfer to current liabilities.
(Net assets)
Increase of retained earnings by ｔhe profit attributable to owners of parent was offset by the fluctuation of foreign
currency translation adjustment, reducing net assets to 31,781 million yen, down by 118 million yen from the end of
the previous consolidated fiscal year.
Note that the capital adequacy ratio increased by 1.8 percentage points to 49.0%.
(ⅱ) Overview of the Cash flows
As of the consolidated cumulative second quarter, cash and cash equivalents amounted to 4,602 million yen, down by
1,044 million yen from the end of the previous consolidated fiscal year. Cash flows from various activities aredescribed in more detail below.
(Cash flows from operating activities)
Net cash provided by operating activities was 1,657 million yen, up by 84 million yen (year-over-year), mainly due tothe increase in profit before income taxes.
(Cash flows from investing activities)
Net cash used in investing activities was 1,567 yen million, up by 220 million yen (year-over-year), mainly due to theincrease of purchase of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities was 2,527 million yen, up by 730 million yen (year-over-year), mainly due to thebalance difference of loan payable.

(3) Overview of consolidated business forecast
Consolidated business forecast for the fiscal year ending March 31, 2020 released on May 10, 2019 has not beenrevised, as the overall business environment remained unclear.

Page 3 of 7

5. Consolidated Financial Statements

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,2019

As at September 30,
2019

AssetsCurrent assets
Cash and deposits

7,081

4,502

Notes and accounts receivable - trade

15,846

15,730

Securities

149

138

Merchandise and finished goods

7,777

7,789

Work in process

2,433

2,672

Raw materials and supplies

3,624

3,365

Other

867

833

Allowance for doubtful accounts

(32)

(30)

37,74835,002

Buildings and structures, net

8,413

8,248

Machinery, equipment and vehicles, net

7,643

7,396

Other, net

7,356

8,519

Total property, plant and equipment

23,41324,164

503

491

5,665

4,915Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets
Investments and other assets, grossAllowance for doubtful accounts

(11)

(10)

Total investments and other assets

5,654

4,904

29,571

29,56067,32064,562

Total non-current assets
Total assets

Page 4 of 7

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,
2019

As at September 30,
2019

Liabilities
Current liabilities
Notes and accounts payable - trade

8,808

8,695

Short-term borrowings

4,220

4,097

Current portion of long-term borrowings

3,483

2,747

Income taxes payable

379

414

Provision for bonuses

1,075

1,055

Other

4,695

4,272

Total current liabilities

22,663

21,283

Non-current liabilities
Long-term borrowings

10,626

9,204

Provision for retirement benefits for directors (and other officers)

106

102

Retirement benefit liability

775

756

Asset retirement obligations

141

136

Other

1,107

1,297

Total non-current liabilities

12,756

11,49735,42032,781

Total liabilities
Net assets
Shareholders' equity
Share capital

7,411

7,411

Capital surplus

10,362

10,362Retained earnings

14,32314,805

Treasury shares

(276)

(269)

Total shareholders' equity

31,82132,308

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

297

337

Foreign currency translation adjustment

(353)

(990)

Total accumulated other comprehensive income

(56)

(653)

Non-controlling interests
Total net assets
Total liabilities and net assets

Page 5 of 7

135

125

31,90031,781

67,32064,562

Consolidated Statements of Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2019

Net sales

28,42628,718

Cost of sales

21,225

21,143Gross profit

7,200

7,575

Selling, general and administrative expenses

6,710

6,757

490

817

Operating profit
Non-operating income
Interest income

79

Dividend income

2123

Share of profit of entities accounted for using equity method

182

142

Subsidy income

20

71

Other48

61

Total non-operating income

280

307

Interest expenses

94

99

Foreign exchange losses

68

54

Other14

14

Total non-operating expenses

177168593

956

Gain on sales of non-current assets

42

Total extraordinary income

42

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets

0－Loss on abandonment of non-current assets

286

Total extraordinary losses

29

6568

952

Income taxes - current

202

250

Income taxes - deferred(61)63

Total income taxes

140314

Profit427

638

Profit before income taxes

Profit attributable to non-controlling interests

Profit attributable to owners of parent

10426

637

Consolidated Statements of Comprehensive Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Six months ended
September 30, 2018
ProfitSix months ended
September 30, 2019

427

638

Other comprehensive income
Valuation difference on available-for-sale securities

(79)

40

Foreign currency translation adjustment26(637)

Total other comprehensive income

(52)

(596)

374

41

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Page 6 of 7370

514(9)

Consolidated statements of cash flows
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Six months ended
September 30, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement 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
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Settlement package received
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
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
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 periodPage 7 of 7

Six months ended
September 30, 2019

568
1,507
0
41(29)
94
12(182)
(3)
28
480
(435)
(139)
(1)
(29)
(338)
(15)
1,558
29(96)
200－
(117)
1,573

952
1,538
(0)
32
(33)
99
(5)
(142)
(2)
6
255
(405)
(45)
39(62)
(478)
(10)
1,740
33(105)
135
60
(205)
1,657

(0)
10
(1,150)6(83)(129)(1,347)(27)
1(1,453)
22(74)(36)(1,567)

7,700(7,760)(1,477)
(0)
(194)
(64)
(1,796)(3)(1,573)
7,220
5,647

8,292
(8,410)(2,105)
(0)
(195)
(108)
(2,527)(176)(2,614)
7,216
4,602