Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2016
February 5, 2016
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): February 10, 2016

Supplemental material of quarterly results: NoneConvening briefing of quarterly results: NoneDividend payable date (as planned):－(Note: Amounts below are rounded down to the nearest million yen)
1. Consolidated Financial Highlights for the Interim Period Ended December 2015 (From April 1, 2015 to December 31, 2015)(1) Consolidated financial results
Net sales

Operating income
Millions of yen

Millions of yen%

Nine months ended December 31, 2015

43,0955.0

1,019 154.0

Nine months ended December 31, 2014

41,0463.0

401 (33.2)(Note)%〔(%: change from the same previous period)
Profit attributable toOrdinary income
owners of parent
Millions of yen
Millions of yen%%959〕

94.5

721 144.7

493 (46.2)

294 (49.1)〔〕

Comprehensive income : Nine months ended December 31, 2015 : 343 million yen (73.7)% , Nine months ended December 31, 2014 : 1,304 million yen (22.1)% .
Net income per share

Diluted net income per share

Nine months ended December 31, 2015

Yen
14.81

Nine months ended December 31, 2014

6.05

Yen－－(2) Consolidated financial positions
Total assets

Net assets

Capital adequacy ratio

Millions of yen

Millions of yen%

As at December 31, 2015

64,79531,47448.4

As at March 31, 2015

60,452

31,53052.0(Note)

Owner's equity : December 31, 2015 : 31,360 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
4.00

3rd quarter
Fiscal year end
Yen
Yen
4.00

－－

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

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
Year ending March 31, 2016
(Note)

58,000Operating income%
4.7

Millions of yen%
1,100 190.3

Ordinary income
Millions of yen%
1,100 194.6(%: change from the same previous period)
Profit attributable toNet income
owners of parent
per share
Millions of yen
Yen%
800 475.2

Correction of financial forecast from the most recent financial forecast. : Yes

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

16.41

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

4. Overview of financial results for the third 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 43,095 million yen in thisperiod, up 5.0% / 2,048 million yen (year-over-year).
The operating income totaled 1,019 million yen in this period, up 154.0% (year-over-year), due to the influence ofincreased sales as well as the cost reduction at our manufacturing sites. The addition of equity in earnings ofaffiliates was offset by the exchange loss, resulting in an ordinary income of 959 million yen, up 94.5%(year-over-year). The addition of gain on sales of non-current assets and the deduction of tax expense resulted in
the net income attributable to equity holders of the parent company of 721 million yen, up 144.7% (year-over-year).

Business performance by geographical segment(i) Japan
Increased sales of cardiopulmonary equipment as well as launch of blood bags with leukocyte reduction filter raised
net sales to 30,811 million yen, up 2.4% (year-over-year). Despite the influence of sales increase, the higher importcost with weak yen as well as the loss of abandonment of inventories resulted in a loss of 9 million yen, down 46
million yen, for this geographical segment.
(ii) Southeast Asia
Continued growth in the sales of apheresis kits equipment raised net sales to 15,522 million yen, up 13.3%(year-over-year). The influence of sales increase led to a profit of 672 million yen, up 746 million yen, for thisgeographical 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 3,062 million yen, up 6.9% (year-over-year). Decrease of profit from the sales on a yen basis
transaction resulted in a loss of 109 million yen, down 190 million yen, for this geographical segment.
(iv) Germany
Increased sales of dialysis therapy chairs for Australian market was offset by decrease of sales in yen equivalent bystrong yen, reducing net sales to 2,410 million yen, down 2.3% (year-over-year). Higher import cost with weakEuro resulted in a profit of 222 million yen, down 19.4%, for this geographical segment.

Page 2 of 6

(v) The United States
Strong sales of AV fistula needles for South and Central America market raised net sales to 2,473 million yen, up
16.4% (year-over-year). Despite the increase of selling expenses, influence of sales increase raised net profit of 102
million yen, up 25.2%, for this geographical segment.
The remaining geographical segments recorded net sales of 1,426 million yen, up 7.9% (year-over-year), and a loss of
230 million yen, down 292 million yen.
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 64,795 million yen, up 4,342 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 35,654 million yen, up 1,222 million yen from the end of the previous consolidated fiscal
year, mainly due to the increase of cash and deposits.
Noncurrent assets grew to 29,140 million yen, up 3,119 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 20,463 million yen, down 146 million yen from the end of the previous consolidated
fiscal year, mainly due to the decrease of allowance for bonus.
Noncurrent liabilities increased to 12,856 million yen, up 4,543 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 31,474 million yen, down 55 million yen from the end of the previous consolidated fiscal year,
mainly due to the foreign currency translation adjustment.
Note that the equity ratio declined by 3.6 percentage points to 48.4%.

(3) Overview of consolidated business forecast
Consolidated business forecast for the fiscal year ending March 31, 2016 released on May 8, 2015 has been revised asfollows;
Revision of consolidated business forecasts for the FYE Mar. 2015
Previous
New forecast
Amount changed
Forecast (A)(B)(B – A)Net sales
58,00058,000－Operating income
700
1,100400
Ordinary income
800
1,100300
Profit attributable to500
800300owners of parent(Unit: million yen)
Results for previous
FY ended Mar. 2015
55,401378373139

Steady growth in sales and the decline of material cost and the reduction of manufacturing expenses
resulted in the increase of profit.
The assessment figures described on this forecast are based on available information at this moment, including
uncertain data. Actual results may be different from the figures.

Page 3 of 65. Consolidated Financial Statements

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,
2015
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
Construction in progress
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 December 31,
2015

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

5,601
16,190
7,286
2,333
3,241
1,094
(93)
35,6547,464
3,240
10,34921,055
627

7,293
6,592
10,00723,892
534

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

4,717
(3)
4,714
29,14064,795

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 December 31,2015

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

8,271
4,350
2,265
113
9626
21
4,806
20,463

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

10,811
78
698
236
1,030
12,85633,3207,411
10,362
12,253(277)
29,7497,411
10,362
12,585(280)
30,078

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

583
698
1,281
114
31,47464,795

Consolidated Statements of Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
Nine months endedDecember 31, 2014
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
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 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
Compensation for damage
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Nine months ended
December 31, 2015

41,04630,918
10,1279,726
401

43,09532,013
11,081
10,062
1,019

3
28
175
110
318

10
29
271
112
422

80
108

100
204
139
3
34
482
959

－

22
15
226
493
13156
170
3
30
75
109
554
210
37
247
306
1129483－83
2660－87955
16461225
729
7721

Consolidated Statements of Comprehensive Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
Nine months ended
December 31, 2014
ProfitOther 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 6Nine months ended
December 31, 2015

306

729

53
945
0998
1,304

55(441)

1,279
25

340
2－(386)343