Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2016
August 8, 2016

Name of the listed company: NIPPON SHINYAKU CO., LTD.
Listing stock exchange: Tokyo
Code No.: 4516
URL http://www.nippon-shinyaku.co.jp/
Representative: Shigenobu Maekawa, President and Representative Director
Contact: Taro Sakurai, General Manager and Finance & Accounting Dept.
Tel. +81-75-321-9114
Scheduled date for submission of quarterly Securities Report: August 10, 2016
Scheduled start of payment:—Supplementary material:
Yes
Financial result meeting:Yes (for institutional investors and securities analysts on conference call)* All amounts are rounded down to the nearest million yen.

1. Consolidated Results for the Year Ended June 30, 2016 (April 1, 2016 to June 30, 2016)(1) Operating results

Net sales
Quarter ended June 30, 2016
23,743
Quarter ended June 30, 2015
19,260Note: Comprehensive income
As of June 30, 2016: ¥2,180 million

23.3%
7.4%
17.5%

Operating income

Ordinary income

4,424
636

4,138888

595.0%(21.8%)

365.9%(13.8%)

As of June 30, 2015: ¥1,856 million(¥ million)
Net income attributableto owners of the parent
3,078
404.7%
609(12.0%)

40.7%

Net income per share (¥)
Basic
DilutedQuarter ended June 30, 2016
45.70—
Quarter ended June 30, 2015
9.05—
Notes: 1. Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.
2. Equity-method investments: not applicable(2) Financial position
Total assets
135,766
135,370

As of June 30, 2016
As of March 31, 2016
Note: Owners’ equity
As of June 30, 2016: ¥104,431 million

Net assets
104,644
102,762

Equity ratio
76.9%75.8%(¥ million)
Net assets per share (¥)
1,550.29
1,522.33

As of March 31, 2016: ¥102,549 million

2. Dividends
Cash dividends per share (¥)
1st quarter2nd quarter3rd quarter

Year-end

AnnualYear ended March 31, 2016—

¥14.00—¥14.00¥28.00Year ending March 31, 2017—¥17.00—¥18.00¥35.00Year ending March 31, 2017 (forecast)
Note: Revisions to forecast for the current quarter: None.

3. Business Forecast for the Year Ending March 31, 2017 (April 1, 2016 to March 31, 2017)(¥ million)
Net income
Net income
Net sales
Operating income
Ordinary income
attributable toper share (¥)
owners of the parent
First-half period
41,500
5.3%
3,200
51.6%
3,350
43.4%
2,200
44.4%
32.66
Full term
93,00010.4%
11,50034.5%
11,900
32.9%
8,500
34.1%
126.18Notes: 1. Percentage figures represent the percentage of increase or decrease against the same period of the previous year.
2. Revisions to forecast for the current quarter: None.

4. Others(1) Changes in the scope of consolidation
Inclusion: None
Exclusion: None
Note: Changes in specified subsidiaries involved changes in the scope of consolidation(2) Adoption of special accounting methods for preparation of quarterly financial statements: None
(3) Changes in accounting policies and accounting estimates, and restatement
1. Changes in accounting policies arising from revision of accounting standards: None
2. Changes in arising from other factors: None
3. Changes in accounting estimates: None
4. Restatement: None
(4) Number of shares outstanding (ordinary shares)
Number of shares outstanding (including treasury stock)
As of June 30, 2016:
70,251,484 shares
As of March 31, 2016:
70,251,484 shares
Number of shares of treasury stock
As of June 30, 2016:
2,888,480 shares
As of March 31, 2016:
2,888,330 shares
Average number of shares outstanding (total for the consolidated period)
As of June 30, 2016:
67,363,093 shares
As of June 30, 2015:
67,381,370 shares

Note:
This summary of quarterly financial results is exempt from the quarterly review procedures under the Financial
Instruments and Exchange Act. At the time of disclosure, published figures in this financial release have not been
completed to a quarterly review of financial statements based on the Financial Instruments and Exchange Law.
This financial release contains certain statements about the future, which are based information available and deemed
reasonable to Nippon Shinyaku at the time of announcement, and are not the commitments made by Nippon Shinyaku.
Readers are advised that actual results may differ substantially from the above forecasts due to various unforeseeable
factors.

5. Consolidated Financial Statement for the Quarter(1) Consolidated Balance Sheet for the Quarter(¥ million)
As of previous
consolidated fiscal
year ended March31, 2016

As of 1st quarter
ended June 30, 2016

AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Merchandise and products
Partially finished products
Work in process
Materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets¥ 20,435
35,135
7,626
12,730
1,182
336
4,679
1,861
1,411
(0)
85,401¥ 22,513
35,156
7,229
12,510
1,443
609
4,066
2,115
1,667
(0)
87,311

Fixed assets:
Tangible fixed assets:
Buildings and structures (net)Land
Other (net)Total tangible fixed assets

7,449
7,509
2,664
17,624

7,502
7,509
2,673
17,685501

468

21,497
55
7,521
2,768
31,84349,968¥ 135,370

20,241
54
7,234
2,770
30,301
48,455¥ 135,766

Intangible fixed assets
Investments and other assets:
Investment securities
Deferred tax assets
Long-term prepaid expenses
Other
Total investments and other assets
Total fixed assets
Total assets(¥ million)
As of previous
consolidated fiscal
year ended March
31, 2016

As of 1st quarter
ended June 30, 2016

Liabilities
Current liabilities:
Notes and accounts payableAccrued liabilities
Income taxes payable
Reserve for bonuses
Other current liabilities
Total current liabilities¥ 6,759
7,111
1,929
2,517
2,250
20,569¥ 6,778
5,441
1,273
3,885
2,342
19,722Long-term liabilities:
Deferred tax liability
Reserve for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

1,192
10,410434
12,03732,607870
10,103426
11,40031,122

Net assets
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity5,174
4,445
89,658(2,413)96,864

5,174
4,445
92,440(2,414)
99,6469,091(2)17(3,421)
5,684
213
102,762¥ 135,370

8,097(26)
5(3,290)
4,785
212
104,644¥ 135,766

Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

(2) Consolidated Statements of Income for the Quarter(Total for the consolidated period ended June 30, 2016)(¥ million)
1st quarter ended
June 30, 2015
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses:
Salaries and benefits
Provision for bonuses
Sales promotion expenses
Provision for retirement benefits
Depreciation
R&D expenses
Other
Total general, selling, and administrative expenses
Operating income
Non-operating income:Interest income
Dividend received
Rent income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses:
Interest expenses
DonationForeign exchange loss
Rent expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Profit (loss) attributable to non-controlling interests
Net income attributable to owners of the parent

1st quarter ended
June 30, 2016

¥ 19,260
10,422
8,838¥ 23,743
11,13812,605

1,632
856
710
209
62
2,591
2,139
8,201
636

1,632
910
685
225
97
2,521
2,109
8,180
4,424

4
204
92
647
354

5
204
109
—
26345

0
44—
2433103888888485(206)279609(0)¥ 609

048491
25
64
631
4,138
4,138
1,251(193)
1,058
3,079
1¥ 3,078(Consolidated Statements of Comprehensive Income)(Total for the consolidated period ended June 30, 2016)(¥ million)
1st quarter ended
June 30, 2015
Net income
Other comprehensive income
Unrealized gain or loss on available-for-sale securities
Deferred gain or loss on derivatives under hedge accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Item)
Comprehensive income attributable to owners of the parent
Comprehensive income(loss) attributable to Non-controlling interests

1st quarter ended
June 30, 2016

¥ 609

¥ 3,079

1,137
13(0)
96
1,247
1,856(994)
(23)
(12)
131(899)
2,180

1,857
¥ (0)

2,179
¥1