Outline of Consolidated Financial Results for the Year Ended March 31, 2018
May 9, 2018
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 annual general meeting of shareholders: June 28, 2018
Scheduled start of payment: June 29, 2018
Scheduled date for submission of Securities Report: June 29, 2018
Supplementary material:Yes
Financial result meeting:Yes (for institutional investors and securities analysts)* All amounts are rounded down to the nearest million yen.
1. Consolidated Results for the Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Operating results
Net sales

Operating income

Year ended March 31, 2018
101,448
2.7%
Year ended March 31, 2017
98,781
17.3%
Note: Comprehensive income
As of March 31, 2018: ¥15,163 million (15.7%)

17,07915,280

11.8%
78.7%

(¥ million)

Net income attributable
Ordinary income
to owners of the parent
17,451
7.4%12,953
10.2%
16,24481.4%
11,74985.3%

As of March 31, 2017: ¥13,102 million (278.5%)

Net income per share (¥)
Ordinary income toOperating income to
Return on equity
total assets
net sales
Basic
Diluted－Year ended March 31, 2018
192.31
10.8%
11.3%
16.8%
－Year ended March 31, 2017174.42
10.8%
11.3%
15.5%
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(¥ million)

Total assets
As of March 31, 2018
158,192
As of March 31, 2017
150,905
Note: Owners’ equity
As of March 31, 2018: ¥125,451 million

Net assets
125,689
114,316

Equity ratio
Net assets per share (¥)
79.3%
1,862.54
75.6%
1,693.81

As of March 31, 2017: ¥114,089 million(3) Cash flows

As of March 31, 2018
As of March 31, 2017(¥ million)
Cash flows fromoperating activities
6,719
18,916

Cash flows frominvesting activities(11,342)(5,750)Cash flows from
Cash and cash
financing activities
equivalents at year-end(3,787)27,510(2,193)35,914

2. Dividends
Annual dividends per share (¥)
2nd quarter
Year ended March 31, 2017
Year ended March 31, 2018Year ending
March 31, 2019 (forecast)Year-end

Annual18.00
26.00

30.00
26.00

48.00
52.00

29.00

29.00

58.00

Dividends as apercentage ofnet assets(consolidated)
27.5%
3.0%
27.0%
2.9%

Total dividends
Payout ratio(full term)(consolidated)(¥ million)
3,233
3,502

27.9%

3. Business Forecast for the Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)

Net sales

Operating income Ordinary income

First-half period52,000
4.7%
6,500 (29.9%)
Full term
108,000
6.5% 18,500
8.3%
Note: Percentage figures represent year-on-year comparisons.

- 1 -6,800 (29.7%)
19,0008.9%(¥ million)
Net income
Net income
attributable toattributable toowners of theowners of theparent
parent per share (¥)
4,900 (30.0%)
72.75
14,0008.1%
207.85

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) 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
(3) Number of shares outstanding (ordinary shares)
Number of shares outstanding (including treasury stock)
As of March 31, 2018:
As of March 31, 2017:
Number of shares of treasury stock
As of March 31, 2018:70,251,484 shares
70,251,484 shares
2,896,632 shares

As of March 31, 2017:
2,894,408 shares
Average number of shares outstanding (total for the consolidated period)
As of March 31, 2018:
As of March 31, 2017:

67,355,461 shares
67,362,340 shares

Note:
This summary of financial results is exempt from the audit procedures under the Financial Instruments and Exchange Act. At the timeof disclosure, published figures in this financial release have not been completed to an audit of financial statements based on theFinancial Instruments and Exchange Law.
The above forecasts are based on data available as of the date of release of this document as well as assumptions based on uncertain
factors, which might have a material effect on the Company’s performance in the future. Readers are advised that actual results may
differ substantially from the above forecasts due to various unforeseeable factors.

- 2 -5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Electronically recorded monetary claims
Securities
Merchandise and finished goods
Semi-finished goods
Work in process
Raw materials and supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment andvehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures,net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Total assets－3－

As of March 31, 2018

30,78136,444434
8,657
12,291
1,688
466
4,129
2,408
1,483
(0)
98,78721,06739,593571
11,81914,337
1,341
330
4,337
2,777
1,777
(0)
97,95325,187(17,344)
7,843
10,834(9,317)

27,178(17,670)
9,508
12,330(9,578)

1,516

2,752

8,577
(7,511)

8,679(7,367)

1,066

1,311

7,463
2,153
20,043
494

7,463
67
21,102484

21,681
55
7,085
2,757
31,58052,118150,905

26,309
45
9,621
2,676
38,652
60,238158,192

(Millions of yen)
As of March 31, 2017
Liabilities
Current liabilities
Notes and accounts payable
Accounts payable
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Net defined benefit liability
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-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets－4－

As of March 31, 2018

6,232
11,971
1,237
3,892
200
2,705
761
27,001

8,639
6,718
1,354
2,115
188
2,873
563
22,454

1,121
8,064
401
9,587
36,589

2,305
7,422
321
10,04832,503

5,174
4,445
99,897(2,450)107,067

5,174
4,445
109,078(2,464)116,234

9,23511,469(5)
11(2,217)(5)
4(2,252)

7,022

9,216

226
114,316
150,905237
125,689
158,192

(2) Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Depreciation
Research and development expenses
Promotion expenses
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Contribution
Foreign exchange losses
Rent expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent－

5 －Fiscal year ended
March 31, 2018

98,781
44,83553,946

101,448
46,92954,519

8,110
1,962
907
396
14,903
3,007
9,377

8,345
1,965
735
458
13,221
3,901
8,811

38,66637,43915,28017,079

39
394
439
483
229
1,587

26
459
461
－
175
1,122

3
204－
117
298
623
16,244

3
224
243
180
99
751
17,451766
766
15,477
4,864(1,152)
3,712
11,765－－
17,451
4,622
(140)
4,482
12,96915

15

11,74912,953

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 2017
ProfitOther comprehensive income
Valuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustmentRemeasurements of defined benefit plans,
net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable to noncontrolling interests－6 －Fiscal year ended
March 31, 2018

11,765

12,969

143

2,234

(3)
(6)

0(6)

1,203

(34)

1,337
13,102

2,194
15,16313,087

15,1471515

(3) Consolidated Statements of Changes in Net Assets(Millions of yen)
Shareholders' equity

Year ended March 31,2017

Capital stock

Capital surplus

Retained earnings

Treasury shares

Total
shareholders'equity

5,174

4,445

89,658(2,413)96,864

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange of scope ofconsolidation
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period（2,155）(2,155)

11,74911,749

0(36)

(36)

00645

645－

0

10,239(36)

10,203

5,174

4,445

99,897(2,450)107,067

Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period
Dividends ofsurplus

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasuremen
ts ofdefinedbenefit
plans

Total
accumulat
ed othercomprehensiveincome

9,091

(2)

17(3,421)

5,684

Noncontrollinginterests

Total net
assets213

102,762(2,155)

Profit attributableto owners of parent
Purchase oftreasury shares
Disposal oftreasury shares
Change of scope ofconsolidation
Net changes of
items other thanshareholders'equityTotal changes of
items during period
Balance at end ofcurrent period

11,749(36)0645

143(3)

(6)

1,203

1,337

13

1,351

143(3)

(6)

1,203

1,337

13

11,5549,235(5)11(2,217)

7,022

226

114,316－

7 －(Millions of yen)
Shareholders' equity

Year ended March 31,2018

Capital stock

Capital surplus

Retained earnings

Treasury shares

Total
shareholders'equity

5,174

4,445

99,897（2,450）107,067

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus(3,771)(3,771)

Profit attributable toowners of parent

12,953

12,953Purchase of treasury
sharesNet changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

(14)

(14)

－－

9,181

(14)

9,167

5,174

4,445

109,078(2,464)116,234

Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period
Dividends ofsurplus

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasureme
nts ofdefinedbenefit
plans

Total
accumulat
ed othercomprehensiveincome9,235(5)

11(2,217)

7,022

Noncontrollinginterests

Total net
assets226

114,316(3,771)

Profit attributableto owners of parent
Purchase oftreasury shares
Net changes of
items other thanshareholders'equityTotal changes of
items during period
Balance at end ofcurrent period

12,953
(14)

2,234

0(6)

(34)

2,194

11

2,205

2,234

0(6)

(34)

2,194

11

11,372

11,469(5)

4(2,252)

9,216

237

125,689－8 －(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in provision
Increase (decrease) in net defined benefit
liability
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts
receivable
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts
payableIncrease (decrease) in accrued consumption
taxes
Increase (decrease) in other currentliabilities
Foreign exchange losses (gains)
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operatingactivities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Other, net
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
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period－

9 －Fiscal year ended
March 31, 2018

15,477
2,648
766
187

17,4512,773－
168

(589)

(692)

(434)
3(486)
3(1,742)(3,286)352(140)(1,768)
(273)

(533)

2,407

(295)

27

5,782

(3,386)(182)272
21,571434(3)(3,084)(13)(468)
12,457486(3)(6,220)18,916

6,719

(622)
442
(3,506)2,948(1)(4,131)
(221)
(864)
205

(637)
547
(4,420)2,657(1,431)(4,017)(160)(4,004)123(5,750)(11,342)(2,154)(36)(1)(3,768)(14)(4)(2,193)(3,787)125

611,098(8,404)

24,74835,91467－

35,91427,510