Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2015
February 5, 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): February 9, 2015

Supplemental material of quarterly results: NoneConvening briefing of quarterly results: None:－Dividend 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 2014 (From April 1, 2014 to December 31, 2014)(1) Consolidated financial results(%: change from the same previous period)
Net sales

Operating income

Net income

Millions of yen%

Nine months ended December 31, 2014

41,0463.0

401 (33.2)

493 (46.2)

294 (49.1)

Nine months ended December 31, 2013

39,8408.5600 (63.6)

916 (52.7)

580 (58.4)(Note)

Millions of yen

Ordinary income
Millions of yen%%

Millions of yen%Comprehensive income : Nine months ended December 31, 2014 : 1,304 million yen 〔(22.1)%〕, Nine months ended December 31, 2013 : 1,674 million yen 〔(12.0)%〕.
Net income per share

Diluted net income per share

Yen
6.05

Yen

Nine months ended December 31, 2014
Nine months ended December 31, 2013

11.89－－(2) Consolidated financial positions
Total assets

Net assets

Capital adequacy ratio

Millions of yen

Millions of yen%

As at December 31, 2014

59,02731,54553.2

As at March 31, 2014

53,222

30,61957.4(Note)

Owner's equity : December 31, 2014 : 31,428 million yen, March 31, 2014 : 30,526 million yen.

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

2nd quarter
Yen
4.00

Year ending March 31, 2015

－

4.00

3rd quarter
Fiscal year end
Yen
Yen
4.00
－

Yen
8.00

－

Year ending March 31, 2015 (forecast)(Note)

Total

4.00

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
Year ending March 31, 2015(Note)

55,000Operating income%
2.1

Millions of yen%
700 (22.3)

Ordinary income
Millions of yen%
800 (32.7)(%: change from the same previous period)
Net income
Net income
per share
Millions of yen
Yen%
450 116.9

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 69.23

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

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, 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 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 41,046 million yen in this period, up 3.0% / 1,206 million yen (year-over-year).
Despite the efforts of efficient operations of selling and general administrative expenses, the operating income totaled
401 million yen, down 33.2% (year-over-year), due to the influence of decreasing reimbursement price in Japan.
The addition of equity in earnings of affiliates resulted in the ordinary income of 493 million yen, down 46.2%(year-over-year). The addition of gain on sales of investment securities and the deduction of tax expense resulted in
the net income of 294 million yen in this period, down 49.1% (year-over-year).

Business performance by geographical segment.
(i) Japan
Strong sales of single patient hemodialysis machines for overseas markets was offset by the influence of reaction of
the last-minutes demand before the consumption tax increase and decreasing reimbursement price in Japan, reducing
net sales to 30,102 million yen, down 1.2% (year-over-year). The influence of sales drop as well as the increase ofimport prices by the weak yen resulted in a profit of 36 million yen, down 93.3%, for this geographical segment.
(ii) Southeast Asia
Continued growth in the sales of AV fistula needles for Western markets raised net sales to 13,703 million yen, up
7.3% (year-over-year). Despite the increase of labor cost, the influence of increased sales resulted in a loss of 74
million yen, up 27 million yen, 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 2,865
million yen, up 8.3% (year-over-year). The influence of increased sales led to a profit of 81 million yen, up 134
million yen, for this geographical segment.
(iv) Germany
Strong sales of AV fistula needles for Europe raised net sales to 2,468 million yen, up 12.5% (year-over-year).
Lower import cost with strong Euro led to a profit of 276 million yen, up 35.5%, for this geographical segment.

Page 2 of 6

(v) The United States
Strong sales of AV fistula needles for North America raised net sales to 2,125 million yen, up 3.4% (year-over-year).
The influence of no dividend payment from the shares owned resulted in a profit of 81 million yen, down 46.9%, forthis geographical segment.
The remaining geographical segments recorded net sales of 1,321 million yen, up 11.9% (year-over-year), and a
profit of 61 million yen, up 92.2%.
The abovementioned figures do not include consumption tax, etc.

(2) Overview of the business results
Gross assets as of the end of Q3 totaled 59,027 million yen, up 5,805 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 34,525 million yen, up 3,759 million yen from the end of the previous consolidated fiscal
year, mainly due to the increase of cash and deposits.
Noncurrent assets grew to 24,502 million yen, up 2,046 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 19,384 million yen, up 1,042 million yen from the end of the previous consolidated
fiscal year, mainly due to the increase of accounts payable-other.
Noncurrent liabilities increased to 8,097 million yen, up 3,836 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 31,545 million yen, up 926 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 4.2 percentage points to 53.2%.

(3) Overview of consolidated business forecast
Consolidated business forecast for the fiscal year ending March 31, 2015, which was revised and released on
November 6, 2014 has not been changed.

Page 3 of 6

5. Consolidated Financial Statements

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
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, netTotal 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,
2014

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

4,222
17,156
6,491
2,398
3,466
799
(8)
34,525

6,095
12,06018,156730

7,425
12,165
19,591
661

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

4,253
(3)
4,250
24,50259,027

Consolidated Balance SheetJMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
As at March 31,
2014
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
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 surplusRetained 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 5 of 6

As at December 31,
2014

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

7,862
4,600
1,721
113
8
589
4,489
19,384

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

6,284
68
571
259
914
8,097
27,482

7,411
10,362
12,504(274)
30,0037,411
10,362
12,409(276)29,906

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

407
1,114
(0)
1,521
117
31,54559,027

Consolidated Statements of Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
Nine months ended
December 31, 2013
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
Foreign exchange gains
Other
Total non-operating incomeNon-operating expenses
Interest expenses
Foreign exchange losses
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
Income before minority interests
Minority interests in income
Net incomeNine months ended
December 31, 2014

39,84029,711
10,1299,528
600

41,04630,918
10,127
9,726
401

563
153
158
84
465

3
28
175－
110
318

52－
75
21150
916

80
108
22
15
226
493

5－
513
156
170

358－
61
860
233
38
272
588
8580

330
75
109
554
210
37
247
306
11294

Consolidated Statements of Comprehensive Income
JMS CO., LTD. and Consolidated Subsidiaries(Millions of yen)
Nine months ended
December 31, 2013
Income 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 6 of 6

Nine months ended
December 31, 2014

588

306

126
960
－1,086
1,674

53
945
0998
1,304

1,652
22

1,279
25