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

Quarterly statement filing date (as planned): August 11, 2014

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 2014 (From April 1, 2014 to June 30, 2014)(1) Consolidated Financial Results(%: change from the same previous period)
Net sales

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Three months ended June 30, 201412,236

(2.0)

(182)

－(128)－(253)－

Three months ended June 30, 201312,4905.5(Note)

18 (94.2)

130 (69.7)

6 (97.7)

Comprehensive income : Three months ended June 30, 2014 : (454) million yen 〔－%〕, Three months ended June 30, 2013 : 471 million yen 〔518.1%〕.
Net income per share

Diluted net income per share

Yen(5.21)

Yen

Three months ended June 30, 2014
Three months ended June 30, 2013

0.14－－(2) Consolidated Financial Positions
Total assets

Net assets

Capital adequacy ratio

Millions of yen

Millions of yen%

As at June 30, 2014

54,831

29,97254.5

As at March 31, 2014

53,222

30,61957.4(Note)

Owner's equity : June 30, 2014 : 29,869 million yen, March 31, 2014 : 30,526 million yen.

2. Dividends
Dividend per share
1st quarter
Yen
Year ended March 31, 2014－

Year ending March 31, 2015－

2nd quarter
Yen
4.00

Year ending March 31, 2015 (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 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

56,0004.0(Note)

Ordinary income

Millions of yen%
400 103.7

1,200

33.2

Millions of yen
500%
12.5

1,400

17.9

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

6.15

800 285.7

300

16.41

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 5

JMS (7702) Financial Results for the first Quarter of Fiscal Year Ending March 31, 2015

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, the government policy accelerates the new market access to the healthcare field. In themeantime 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 ofworsening financial condition of the health insurance system.
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 thecorporate philosophy of 'Patient Comes First'. Product development, production and sales are promoted to boostrevenue 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, JMS recorded consolidated net sales of 12,236 million yen in thisperiod, down 2.0% / 254 million yen (year-over-year).
Despite the efforts to reduce the labor cost, the operating loss totaled 182 million yen (operating income of 18 million
yen in the same period of the previous year), due to the influence of decreased sales. The addition of equity inearnings of affiliates resulted in the ordinary loss of 128 million yen (ordinary income of 130 million yen in the same
period of the previous year). The deduction of tax expense resulted in the net loss of 253 million yen in this period(net income of 6 million yen in the same period of the previous year).

Business performance by geographical segment.
(i) Japan
Continued growth in the sales of cardiopulmonary blood tubing sets and AV fistula needles for Germany was offset
by the sales drop of hemodialysis machine and its ancillary equipments, reducing net sales to 8,864 million yen,down 5.2% (year-over-year). Despite the efforts to reduce labor cost, the influence of decreased sales resulted in aloss of 271 million yen, down 261 million yen, for this geographical segment.
(ii) Southeast Asia
Continued growth in the sales of blood bags for Indonesia raised net sales to 4,205 million yen, up 0.6%
(year-over-year). Favorable foreign exchange resulted in a loss of 51 million yen, up 55 million yen, for thisgeographical segment.
(iii) China
Continued growth in the sales of AV fistula needles for Western and the domestic markets raised net sales to 860
million yen, up 8.6% (year-over-year). The influence of increased sales led to a profit of 48 million yen, up 94
million yen, for this geographical segment.
(iv) Germany
Strong sales of AV fistula needles for Europe raised net sales to 819 million yen, up 21.4% (year-over-year).
import cost with strong Euro led to a profit of 92 million yen, up 61.5%, for this geographical segment.

Page 2 of 5Lower

(v) The United States
Sales drop of blood bags for the South and Central America reduced net sales to 569 million yen, down 16.4%(year-over-year). The influence of decreased sales as well as no dividend payment from the shares owned resultedin a profit of 5 million yen, down 92.0%, for this geographical segment.
The remaining geographical segments recorded net sales of 440 million yen, up 20.5% (year-over-year), and a profitof 36 million yen, up 38 million yen.
The abovementioned figures do not include consumption tax, etc.

(2) Overview of the business results
Gross assets as of the end of Q1 totaled 54,831 million yen, up 1,608 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 31,693 million yen, up 927 million yen from the end of the previous consolidated fiscal
year, mainly due to the increase of cash and deposits.
Noncurrent assets grew to 23,138 million yen, up 681 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 18,009 million yen, down 332 million yen from the end of the previous consolidated
fiscal year, mainly due to the decrease of short-term loans payable.
Noncurrent liabilities increased to 6,849 million yen, up 2,588 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 decreased to 29,972 million yen, down 646 million yen from the end of the previous consolidated fiscalyear, mainly due to the foreign currency translation adjustment.
Note that the equity ratio declined by 2.9 percentage points to 54.5%.

(3) Overview of consolidated business forecast
Consolidated business forecast for the fiscal year ending March 31, 2015 released on May 8, 2014 has not beenrevised, as the overall business environment remained unclear.

2. Summary information (Notes)(Changes in important subsidiaries during the period)
JMS HEALTHCARE PHL, INC. was established and included in the scope of consolidation during the current fiscalyear.

Page 3 of 5

5. Consolidated Financial Statements

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries

As at March 31,
2014
AssetsCurrent 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
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
OtherTotal 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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interestsTotal net assets
Total liabilities and net assets
Page 4 of 5(Millions of yen)
As at June 30,
2014

1,997
16,211
5,608
2,330
3,668
957
(7)
30,766

3,711
14,765
6,545
2,381
3,481
814
(6)
31,693

6,095
12,06018,156730

6,967
11,79018,758
707

3,573
(3)
3,569
22,45653,222

3,675
(3)
3,672
23,13854,831

7,705
4,681
1,363
314
9
1,040
3,226
18,342

7,415
3,693
1,679
125
8
612
4,474
18,009

2,632
71
472
246
839
4,261
22,603

5,163
69483
245
8866,849
24,8597,411
10,362
12,504(274)30,0037,411
10,362
12,055(275)
29,554

354
169
(0)
523
92
30,61953,222429(114)
(0)
315
102
29,972
54,831

Consolidated Statements of Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Three months ended
June 30, 2014

Three months ended
June 30, 2013
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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission fee
Other
Total non-operating expenses
Ordinary income (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
Loss on valuation of investment securities
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income (loss) before minority interests
Minority interests in income
Net income (loss)

12,490
9,246
3,244
3,225
18

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

249
2949
31
162

0
1642－
3696

15－
20
1450
130

23
93642(128)

1
100

0
11
921
110
66
36
103
70
602－
2(131)
8728
115(246)
6(253)

Consolidated Statements of comprehensive income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)Three months ended
June 30, 2014

Three months ended
June 30, 2013
Income (loss) before minority interests
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 minority interests

Page 5 of 57(246)

21443－464
471

75(283)0(207)(454)

469
1(465)
10