Summary Report of Consolidated Financial Results
For the Fiscal Year ended March 31, 2016
May 12, 2016stCompany name: NIPRO CORPORATION
TSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko Sano, President and Representative Director
Contact person: Takehito Yogo, Director and General Manager of Corporate Planning Headquarter
TEL: (06)6372-2331
Date of the ordinary general shareholders’ meeting: June 28, 2016
Payment date of cash dividends: June 29, 2016
Filling date of annual reporting: June 28, 2016
Preparation of supplemental material on financial results: Yes
Presentation on annual results: Yes (for institutional investors and analysts)(Note: Amounts are truncated to one million yen)
Consolidated Results for the Year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)

1.

(1) Consolidated Results of Operations
Net sales
Millions of yen %Year ended March 31, 2016
366,650
12.8
Year ended March 31, 2015
325,084
8.1
Note: Comprehensive income(Note: % of change from the previous fiscal year)
Operating income
Ordinary income
Net income
Millions of yen %Millions of yen %Millions of yen %24,20446.1
14,623(25.6)
19,71858.1
16,571
34.8
19,661
65.0
12,470335.8

Year ended March 31, 2016: 3,874 million yen ((88.2)%) Year ended March 31, 2015: 32,791 million yen (11.1%)

Earnings
per shareYen
116.2280.96

Year ended March 31, 2016
Year ended March 31, 2015
Note: Equity in profit (loss) of affiliate

Dilutedearnings per
share
Yen
114.68-

Raito of net income
to shareholders’equity%11.8
8.5

Year ended March 31, 2016: (95) million yen

Ratio of ordinary
income to total
assets%2.1
3.0

Net assets
Millions of yen
175,507
178,810

Note: Equity

Year ended March 31, 2015: 167,959 million yen(3)Equity ratio

Net assets per shareYen
977.64988.79

%
23.4
24.1

Consolidated Cash Flows

Cash flows fromoperating activities
Millions of yen
29,93427,981

Year ended March 31, 2016
Year ended March 31, 2015

2.

%
6.6
5.1

Year ended March 31, 2015: (168) million yen(2) Consolidated Financial Position
Total assets
Millions of yen
Year ended March 31, 2016
708,882
Year ended March 31, 2015
695,306
Year ended March 31, 2016: 165,997 million yen

Ratio of operating
income to net sales

Cash flows frominvesting activities
Millions of yen(16,513)(29,713)

Cash flows fromfinancing activities
Millions of yen(3,633)
26,598Cash and cash
equivalents
Millions of yen
111,977
98,199Dividends
Annual dividends per year

Year ended March
31, 2015
Year ended March
31, 2016
Year ending March
31, 2017 (Forecast)

3.

Firstquarter

Secondquarter

Thirdquarter

Year-end
dividends

Annualdividends

Yen

Yen

Yen

Yen

Yen

Millions of yen%

Ratio ofdividends to
net assets(consolidated)
%

-

18.00

-

14.50

32.50

5,261

40.1

3.6

-

17.00

-

16.50

33.50

5,712

28.8

3.4

-

20.00

-

20.50

40.50

Annual totalof dividends

Pay-out ratio(consolidated)

38.2

Forecast of Consolidated Financial Results for the Year ending March 31, 2017 (From April 1, 2016 to March 31, 2017)
Net sales

Six months ending Sept. 30 2016
Year ending March 31, 2017

Millions of yen%

181,300
375,000

1.0
2.3

Operating income

Ordinary income

Millions of yen

Millions of yen

13,40030,200

%

15.0
24.8

12,30027,900

%

21.3
90.8

Net income
Millions of yen

7,800
18,000

%

38.1
(8.7)

Earnings
per shareYen
45.94
106.01

*Notes(1) Change in Significant Subsidiaries during the Current Period(Change in specified subsidiaries caused a change in the scope of consolidation): No
Additional: 0Removal: 0(2) Change in Accounting Policies and Accounting Estimate and Restatement[1] Changes in accounting policies by a newly issued accounting pronouncement: Yes[2] Changes other than [1]: No[3] Change in accounting estimate: No[4] Restatement: No
Note: Detailed information can be found in P.19 “(5) Notes to Consolidated Financial Statements (Changes in
Accounting Policy)” in the attachment.
(3) Issued Shares (Common stock)[1] Number of issued shares at end of the period (including treasury stock)
Year ended March 31, 2016: 171,459,479 sharesYear ended March 31, 2015: 171,459,479 shares[2] Number of treasury stock at end of the period
Year ended March 31, 2016: 1,666,187 sharesYear ended March 31, 2015: 1,899,861shares[3] Average number of shares during the period
Year ended March 31, 2016: 169,661,548 sharesYear ended March 31, 2015: 154,045,003 shares
Note: Number of the stocks as of the Year ended March 31, 2016 included 716,300 shares and as of the Year ended
March 31, 2015 included 953,100 shares owned by Trust and Custody Service Bank, Ltd. (Trust Account E).
(Reference) Overview of the Unconsolidated Financial Results
1.

Unconsolidated Results for the Year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(1) Results of Operations

Year ended March 31, 2016
Year ended March 31, 2015

Net sales
Millions of yen %233,41411.8
208,751
10.7
Earnings per share

Year ended March 31, 2016
Year ended March 31, 2015

Yen
57.18
78.02

(Note: % of change from the previous fiscal year)
Operating income
Ordinary income
Net income
Millions of yen %Millions of yen %Millions of yen %20,24031.9
18,206 (18.5)
9,700(19.3)
15,345
3.9
22,33523.5
12,108
5.9
Diluted earnings
per share
Yen
56.42
－

(2) Financial Position
Total assets
Millions of yen
516,443
511,800

Year ended March 31, 2016
Year ended March 31, 2015
Note: Equity Year ended March 31, 2016: 161,098 million yen

Net assets
Millions of yen
161,098
157,543

Equity ratio
%
31.2
30.8

Net assets per shareYen
948.79929.14

Year ended March 31, 2015: 157,543 million yen*Information regarding the review procedure
This report is exempt from auditing procedure based on the Financial Instruments and Exchanges Act. It is
under the auditing process at the time this report is disclosed.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes(1) The projection figures shown above are based on information that was available at the time of preparation andmay contain certain uncertainties. Actual performance and other factors may differ from these projections due
to changes in circumstances and other developments. More information concerning these forecasts can befound in P.2 “1.Business Result (1) Analysis Concerning Business Results”.

Table of Contents
1.

Business Results

2(1) Analysis Concerning Business Results

2(2) Analysis Concerning Financial Position

3(3) Basic Policies on Distribution of Profits and Dividends
for Years ended March 31, 2015 and ending March 31, 2016

42.

Corporate Group

5

3.

Management Policies

7(1)

Basic Policies of Management

7(2)Target Management Indicators

7(3)

Medium- to Long-term Management Strategies

7(4)Issues and Challenges that the Group Faces

7

4.

Basic Thinking Underlying the Concept of Accounting Standard

8

5.

Consolidated Financial Statements

9(1) Consolidated Balance Sheets

9(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income

11

(3)

Consolidated Statements of Shareholders’ Equity

13

(4)

Consolidated Statements of Cash Flows

15

(5)

Notes to Consolidated Financial Statement

17(Notes Related to Going Concern)

17(Basis of Preparation for the Consolidated Financial Statements)

17(Changes in Accounting Policy)

19(Notes to the Consolidated Balance Sheets)

19(Notes to the Consolidated Statements of Income)

19(Notes to the Consolidated Statements of Shareholders’ Equity)

19(Segment Information)

21(Per Share Information)

24(Material Subsequent Event)24

6.

Non-consolidated Financial Statements

25(1) Non-consolidated Balance Sheets

25(2) Non-consolidated Statements of Income andNon-consolidated Statements of Comprehensive Income

28(3) Non-consolidated Statements of Shareholders’ Equity

29

-1-

1.
(1)

Business Results
Analysis Concerning Business Results[1]Commentary on Business Results
During the current period under review, a shift to a full-fledged recovery failed to take shape on account of theeconomic slowdown in China, the decline in crude oil prices, the hiking of interest rates in the U.S., and otherdevelopments. There is even greater uncertainly regarding Japan’s economy for various reasons, including theimpact of the Chinese economy, the economic slowdown in developing countries, as well as growing instability
throughout the world, the source of which is the Middle East. Looking at the exchange rate, yen was weak during thefirst half of the year and then getting increased, which prevented the economy from full-fledged recovery.
Under such circumstances, the Nipro Group has worked to improve operating results through its continued efforts
to expand sales and reduce costs with the greatest priority to user safety.
As a result, consolidated sales for the current period under review increased by 12.8% from the previous year to366,650 million yen. As for the profit, consolidated operating income increased by 46.1% from the previous year to
24,204 million yen. Consolidated ordinary income decreased by 25.6% from the previous year to 14,623 million yen
partly because of exchange losses. Consolidated net income attributable to owners of parent increased by 58.1%
from the previous year to 19,718 million yen due to the increase in Gain on sales of shares of subsidiaries andassociates.
The overview of the results for the current period under review by business segment is as follows.

a. Medical-Related BusinessLooking at the domestic market of Medical-Related Business, sales of injection-transfusion products,
enteral-alimentation products, testing products, dialysis products, and cardiovascular products remained solid.
Especially in the field of dialysis products, sales of HDF filters and dialysis monitoring devices largely increased. As
for cardiac surgery (CVS) products, sales recovered in the current period. For the Pharmaceutical Sales Division, thesales were steady due to the expansion of the market with the promotion policy of generic drugs, the expansion ofexisting products and the launch of addenda listing items in December 2015. However, price competition in thedomestic market continues to grow fiercer for precedent sales of authorized generic drugs or several tens of
manufacturers vying for sales of one item. Therefore, we will continue to strengthen the sales promotion to dispensing
pharmacies, diagnosis procedure combination (DPC) hospitals and prescribers. Also we tried to increase the share oforally administered drugs and external preparations and worked harder for information offering activities of injectables
based on the collaboration with pharmaceutical wholesaler.
Meanwhile, overseas sales increased steadily from the same period of the previous year as we strengthened thesales of dialysis products and hospital products. However, the profits decreased due to the exchange losses causedby the impact of foreign exchange markets.
To strengthen the overseas sales organization and step up our direct sales activities with the aim of quickly
responding further to clinical needs and boosting overseas sales, we have established the head office in Hyderabad,
India to supervise sales subsidiaries. In China, sales offices opened in Changsha, Nanchang and Zibo. And in the
Republic of Ecuador, our U.S. subsidiary, Nipro Medical Corporation, opened its fourth sales office in the country inthe city of Portoviejo. This will make it possible to meet local clinical needs while providing meticulous service closely
tied to the local community and increase the market presence of the company in the country.
In addition, new overseas manufacturing facilities (in India, Indonesia, Bangladesh and Hefei in China) further
improved their production system and realized production expansion under established quality system to promote
their sales widely in their countries and surrounding areas, which contributed to the sales growth.
As a result, net sales of this business increased by 14.5% from the previous year to 272,167 million yen.

b. Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business, we have broadened our contracted manufacturing operation toencompass contracts to develop products from the formulation design of orally administered drugs and external
preparations and to develop products using our expertise developing and supplying vials, syringes, bags, and otherpackaging containers. We also endeavored to expand the contracted business by offering a diverse range of detailed
yet wide-ranging contract services, such as support for lifecycle management where we believe we can enhance thevalue-added features and realize distinct service differentiation. In addition, efforts to upgrade and expand ourcontracted manufacturing capabilities for the dedicated biopharmaceuticals line and the oral drugs and injectable
solutions lines at the high potency active pharmaceutical ingredients manufacturing plant contributed to strong salesof contracted manufacturing.
Sales of pharmaceutical containers as well as devices related to pharmaceutical preparation and administration
steadily increased due to offering containers and systems suitable to each pharmaceutical product developed byourselves or through joint development with pharmaceutical manufactures. Such efforts were made to meet various
needs in the medical front, including small-volume bags, materials for pre-filled syringes (plastic and glass), etc., on
top of rubber stoppers for pharmaceutical and vaccine use and containers for kit products. In addition, under thegovernment’s policy to curb medical expenses, we have worked together with domestic and foreign pharmaceuticalmanufactures in enhancing comprehensive lifecycle management of pharmaceutical products, taking into
consideration the development of combination products (our original collaboration between pharmaceutical products
and medical devices), self-injection systems, and dosage form/administrating path modification in the future.
As a result, net sales of this business increased 8.5% from the previous year to 62,266 million yen.

-2-

c. Glass-Related BusinessIn the Glass-Related Business, adding to our conventional products, we have made efforts of academic and sales
activities to meet global customer needs and acquire new demands while we have promoted the development of newtechnologies and new products domestically and internationally to support injectable formulation and filling processwith high stability.
For the pharmaceutical packaging in domestic glass department, we steadily increased the sales in tube glass, vials
and prefilled syringe. As for “Biwako Factory,” a state-of-the-art plant for pharmaceutical packaging, with the purposeof further improving our quality assurance system for good manufacturing practice (GMP), the factory aims toestablish the production and sales system of high quality glass for medical purpose and promotes their activities tomeet the needs from global customers.
Regarding overseas glass department, both sales and profits have increased. We have expanded the sales ofhigh-valued products such as syringe and various vials which demands are increasing in the mature markets such as
Europe and the United States, as well, the sales of tube glass, ampoules and vials in the emerging markets such as
India or Russia. In China, the market is greatly changing to require higher-quality medical containers thanconventional products following the order of government. Under these circumstances, we have invested in equipment
to introduce high-quality products. We established a company in Shanghai in November 2015 to supervise the three
existing plants in China, and also Technical development division there as an R&D base to accelerate launching into
the high quality market.
Starting from the coming period, this business will officially change the name to Pharma Packaging Business, after
our continual promotion to change to general pharma packaging business with a fusion of products and technologies
cultivated in both medical and pharmaceutical related businesses such as glass containers, rubber stopper andplastic containers. So far, we have promoted the standardization of product specifications and services in each office
to meet the requirement for development from globalizing pharmaceutical companies, and will continuously promote
effective investment domestically and internationally to strengthen production capacity of conventional products, toimprove the quality and to introduce new products for the continuous expansion of our business providing the
products and services with a user-focused approach.
Among other glass-related products, overseas demands of glass for thermos bottles decreased but whole sales ofthis department remained solidly.
As a result, net sales of this business increased 7.9% from the previous year to 32,184 million yen.

d. Other BusinessAmong other business, sales from the real-estate rental business were 32 million yen (down by 69.1% from theprevious year).

[2] Outlook for the next period
The global economic outlook remains uncertain as we anticipate economic slowdown in China and resource
countries. Therefore, we expect the higher yen trend.
Even under such circumstances, we in the Nipro Group will work hard on the continued approaches to preparationof an abundant assortment and development of products with high value-added levels while improving theperformance especially in the new overseas plants.
We project the consolidated net sales of 375,000 million yen (up by 2.3% from the previous year), operating incomeof 30,200 million yen (up by 24.8% from the previous year), ordinary income of 27,900 million yen (up by 90.8% fromthe previous year), and net income attributable to the shareholders of parent company of 18,000 million yen (down by
8.7% from the previous year), for the fiscal year ending March 31, 2017.

(2)

Analysis Concerning Financial Position[1] The conditions of assets, liabilities, and net assets
Total assets increased 13,575 million yen from the end of the previous year to 708,882 million yen. Current assets
increased 17,771 million yen mainly due to an increase of 13,795 million yen in cash and deposits, and noncurrent
assets decreased 4,195 million yen mainly due to a decrease of 5,516 million yen in investment securities.
Total liabilities increased 16,878 million yen from the end of the previous year to 533,375 million yen. Current liabilities
decreased 26,253 million yen mainly due to an decrease of 25,577 million yen in current portion of bonds, andnoncurrent liabilities increased 43,131 million yen mainly due to an increase of 25,000 million yen in convertiblebond-type bonds with subscription rights to shares and 19,324 million yen in long-term loans payable.
Total net assets decreased 3,302 million yen from the end of the previous year to 175,507 million yen. Shareholders’equity increased 13,758 million yen and accumulated other comprehensive income decreased 15,420 million yen.
[2] The condition of cash flow
The ending balance of cash and cash equivalents in the period under review increased 13,778 million yen from theprevious year to 111,977 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities was 29,934 million yen. The main accounts of cash inflow were income
before income taxes and minority interests, 26,284 million yen and depreciation, 30,147 million yen. The main accountsof cash outflow were increase in gain on sales of shares of subsidiaries and associates, 14,072 million yen.

-3-

(Cash flows from investing activities)
Net cash used in investing activities was 16,513 million yen. The main account of cash outflow was payments forpurchase of noncurrent assets, 41,936 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 3,633 million yen. The main account of cash inflow was proceeds fromlong-term loans payable, 105,369 million yen, and the main account of cash outflow was repayment of long-term loans
payable, 66,011 million yen.

[3] Trend of the cash flow indicatorsth

The 60 period
Year ended
March 31,2013
20.7

st

The 61 period
Year ended
March 31,2014
20.2

nd

The 62 period
Year ended
March 31,2015
24.1

rd

The 63 period
Year ended
March 31,2016
23.4

Shareholders’ equity ratio (%)
Ratio of market value of
24.6
22.5
27.9
25.6
shareholders’ equity (%)
Debt redemption (years)
15.5
16.9
14.3
12.7
Interest coverage ratio
6.6
5.5
7.0
6.6
Note: Shareholders’ equity ratio = Shareholders’ equity / Total assets
Ratio of market value of shareholders’ equity = Aggregate market value of the outstanding share / Total assets
Debt redemption = Interest-bearing liabilities / Cash flow from operating activities
Interest coverage ratio = Cash flow from operating activities / Interest payments- Each indicator is calculated from consolidated financial data,- Aggregate market value of the outstanding share is calculated as the share price at the fiscal year-end multiplied by
the number of issued shares (excluding treasury stock)- Cash flow from operating activities is taken from cash flows from operating activities on the consolidated statementof cash flows. Interest-bearing liabilities represent all liabilities represent all liabilities on the consolidated balance
sheets for which interest is payable. The amount of interest payments is taken from the payments of interests on the
consolidated statement of cash flows.

(3)

Basic Policies on Distribution of Profits and Dividends for years ended March 31, 2016 and ending March 31, 2017
We position profit return in the important management measure to distribute the non-consolidated net income toshareholders. Retained earnings are to be invested in the sales and production facilities as well as in research anddevelopment, in view of enlarging the firm management basis and long-term business developments, so as to ensurestable and continuous growth.
According to the above-mentioned policy, annual dividends are calculated to be 33.50 yen per share. As we alreadypaid interim dividends of 17.00 yen per share, year-end dividends are to be 16.50 yen per share to be proposed to therdCompany’s 63 ordinary general meeting of shareholders.
Dividends for year ending March 31, 2017 are expected to be made under our basic policies.

-4-

2.

Corporate GroupOur group consists of the Reporting Company (“the Company”), its 83 subsidiaries and 5 affiliated and is primarily
engaged in manufacture and sale of medical equipment, pharmaceutical products and material products such as glass
for medical use and glass for thermos bottles.
Positioning of each company in connection with the businesses of our group and the relation to the business segment
are as follows:<Medical-Related Business>
Domestic:

The Company, Nipro Medical Industries Co., Ltd. and Goodman Co., Ltd. manufacture medical
equipment, and the Company and Goodman Co., Ltd. sell medical equipment manufactured by its
foreign subsidiaries.
Cell Science & Technology Institute, Inc., develops, manufactures and sells cell-culture-related
products.
Nichihos Co., Ltd. manages dispensing pharmacies and sells pharmaceutical products.

Overseas:

Nipro (Thailand) Corporation Ltd. (Thailand), Nipro (Shanghai) Co., Ltd. (China) and Nipro Medical
LTDA. (Brazil) and other subsidiaries purchase some of raw materials and machinery for theirproduction from the Company, manufacture medical equipment, and sell them through the Company
and its subsidiaries as well as locally on their own.
Nipro Europe N.V. (Belgium), Nipro Medical Corporation (U.S.A.) and Nipro Trading (Shanghai) Co.,
Ltd. (China) and other sales subsidiaries purchase the products mainly from the Corporation and its
subsidiaries, and sell medical equipment etc. in the areas of their locations.

<Pharmaceutical-Related Business>
Domestic:

The Company, Nipro Pharma Corporation, Zensei Pharmaceutical Industries Co., Ltd., and Nipro
Patch Co., Ltd. manufacture and sell pharmaceutical products. Yuki Gosei Kogyo Co., Ltd., anaffiliated company, manufactures and sells active pharmaceutical ingredient etc.

Overseas:

Nipro Pharma Vietnam Co., Ltd. manufactures and sells pharmaceutical products and Nipro Pharma
Corporation sells them.

< Glass-Related Business>
Domestic:

The Company sells glass tube as well as manufactures and sells glass products.

Overseas:

Nipro PharmaPackaging (Shanghai) Co., Ltd. purchases some of raw materials through the Company
and sells them to its subsidiaries such as Chengdu Pingyuan Nipro Pharmaceutical Packaging Co., Ltd.
In addition, subsidiaries such as Nipro PharmaPackaging Americas Corp. (U.S.A), Nipro
PharmaPackaging France S.A.S. (France), Nipro PharmaPackaging Germany GmbH, Nipro Tube
Glass Pvt. Ltd. (India) and Chengdu Pingyuan Nipro Pharmaceutical Packaging Co., Ltd. (China)
manufacture and sell tube glass, vials and ampoules etc for medical use focusing on their eachlocation.

<Other business>
The Company manufactures (purchases, in some cases) and sells production machinery for medical
equipments and is engaged in leasing of real estate properties.
Nissho Insurance Services Co., Ltd. operates non-life insurance agency business mainly for thegroup companies.
Nipro Europe Group Companies N.V. mainly supervises businesses of Nipro Europe N.V. and Nipro
PharmaPackaging International N.V.
The above explanations are illustrated as follows:-5-

（Domestic）
Medical-Related Business《Manufacture》◎Nipro Medical Industries Co.,Ltd.
◎GoodmanCo.,Ltd.

ニ
プ
ロ
株
式
会
社

◎Cell Science & Technology Institute,Inc.

(Overseas)
Medical-Related Business《Sale》◎Nipro Europe N.V.
and 16 other consolidated subsidiaries◎Nipro Medical Corporationand 1 unconsolidated subsidiary◎Nipro Trading (Shanghai) Co.,Ltd.

and 1 affiliated company■Nipro Dongduk Medical Corporationand 12 other consolidated subsidiaries《Sale》

and 1 other consolidated subsidiary◎Nichihos Co., Ltd.
《Manufacture and Sale》

and 10 other consolidated subsidiaries◎Nipro (Thailand) Corporation Ltd.
◎Nipro (Shanghai)

Pharmaceutical-Related Business《Manufacture and Sale》◎Nipro Pharma Corporation《Manufacture and Sale》◎Zensei Pharmaceutical Industry Co.,Ltd.
◎Nipro Patch Co.,Ltd.
《Manufacture and Sale》■Yuki Gosei Kogyo Co.,Ltd.

Co.,Ltd.

N
i
p
r
o

◎Nipro Medical LTDA.

c
o
r
p
o
r
a
t
i
o
n

Pharmaceutical-Related Business《Manufacture and Sale》

Other Business《Non-life insurance agency》◎Nipro India Corporation Pvt. Ltd.
◎Nipro Medical (Hefei) Co.,Ltd.
and 11 other consolidated subsidiaries
and 2 other affiliated companies◎Nipro Pharma Vietnam Co., Ltd.

Glass-Related Business《Manufacture and Sale》◎Nipro PharmaPackaging International N.V.
◎Nipro PharmaPackaging Americas Corp.
◎Nipro PharmaPackaging France S.A.S.
◎Nipro PharmaPackaging Germany GmbHand 1 consolidated subsidiary◎Nipro Tube Glass Pvt. Ltd.
and 3 other consolidated subsidiaries◎Chengdu Pingyuan Nipro Pharmaceutical○Nissho Insurance Services Co.,Ltd.

Packaging Co.,Ltd.
and 3 other consolidated subsidiaries

Supply of raw materials《Sale》

Supply of products and merchandises○Nipro PharmaPackaging (Shanghai) Co.,Ltd.

Other transactions◎Consolidated subsidiary○Unconsolidated subsidiary

Other Business《Supervising》■Affiliated company◎Nipro Europe Group Companies N.V.

-6-

3.

Management Policies(1) Basic Policies of Management
Since our foundation of year 1954, the Company has a business philosophy of contribution to the society throughcorporate activities with the concept of “technology innovation”. In keeping with this philosophy, it has constantly soughtto achieve growth through pursuit of distinctive products and technology for a higher quality of life (QOL) among
patients and response to issues and needs on medical care sites.
In addition, considering the idea that the balance between “stability” and “growth” is most important for a company, we
implement the “performance-linked remuneration system” that is the rule of profit sharing among shareholders,
employees and management, and carry out active business operations, holding the employees responsible for boosting
the performance of individual businesses.

(2) Target Management Indicators
Our performance targets are to achieve 1,000,000 million yen of consolidated net sales by the fiscal year 2030. And as
a first step, we aim to achieve 500,000 million yen of consolidated net sales and 40,000 million yen of ordinary incomeby the fiscal year 2020. To realize these goals, we are going to move towards steady development in each field;
medical, pharmaceutical, and glass businesses.
(3) Medium- to Long-term Management Strategies
Our basic policy and management strategy lie in expansion of share and sales in the global market by heightening our
production capacity for products projected to exhibit quantitative growth, and providing products endowed with stable
quality and cost competitiveness. We are also determined to develop products of value and safety as viewed from theuser’s perspective by making effective use of our original technology and other management resources spanning thethree business segments of Medical Device, Pharmaceutical, and Pharma Packaging Business offering glass products.
In our Medical-Related Business, to expand our share of the market, we are going to take vigorous action to fill out ourassortment and open up new sales channels in domains such as diabetes and vascular products in addition to further
developing our sales of the artificial kidney dialyzers (our mainstay products in this field) and other dialysis products.
We will continue making progress strengthening our sales organization, particularly for overseas sales. We are going
to focus on establishing new business bases and actively developing sales channels in India, China, and otherdeveloping regions where further market expansion is expected. Especially in India, we plan to build a sales network
covering 17 states and 96 % of the population of the country by establishing new 8 subsidiaries in Ahmadabad, Indore,
Kochi, Jaipur, Chandigarh, Bangalore, Raipur and Lucknow in 2016, and 4 in Assam, Bihār, Jharkhand and Odisha in2017.
We will use this sales structure as a base for capturing global leading market shares for our products, particularly fordialysis-related products. Our arterial venous fistula (AVF) needles already command top global market share, and weplan to further fortify the direct sales structure for dialyzers and strengthen ties with major dialysis center groups toincrease the share. We have established dialyzer production structures in India and China and will enhance productionof blood tubing set at each plant to meet market demand.
In the field of generic drugs, the demand is expected to continue in a trend of rapid expansion, in light of the roadmap
for promotion of their use presented by the Ministry of Health, Labour and Welfare, which hopes to increase the shareof the total pharmaceutical sales volume occupied by generic drugs to at least 80 percent by the end of fiscal 2020. As
such, besides our ongoing development of new generic drugs, we are going to continue concentrating on theconstruction of various sales routes to users such as university hospitals, foundation hospitals and dispensing
pharmacy groups while pursuing greater synergistic effects through coordination with our sales division of medical
equipment.
In the Contracted Manufacturing Division of our Pharmaceutical-Related Business, we are building setups for
production and quality assurance to meet the requirements in developed countries. We are also augmenting ourmanufacturing facilities in domains with a high degree of difficulty while further building up our business as one of theleading Japanese firms engaged in contracted manufacturing of pharmaceuticals. We are likewise working for
improving capacity of production sites outside Japan in order to raise our stable supply capability and costcompetitiveness even higher, and thereby enable supply of pharmaceuticals to the whole world.
Regarding the pharmaceutical containers as well as devices related to pharmaceutical preparation and administration,
we will continue to develop and supply the safety and useful products as viewed from the medical-front and patient’s
perspective
Glass-Related Business will change its name to Pharma Packaging Business starting from April 2016. We plan tocontinue expanding our market share by using our glass processing technologies cultivated over our many years ofoperation as a foundation for providing even more detailed customers service backed by region-specific strategies
matched to the globalization of demand in all countries and growing demand for high-quality products in developing
countries. We will also expand our product lines driven by product planning from the customer perspective, such as the
VIALEX® glass vials with minimized alkali elution risk, and continue developing and introducing sterile containers andother high value-added products and we seek to advance from glass sales to solution sales.
(4) Issues and Challenges that the Group Faces
In our Medical-Related Business, our Medical Sales Division shall strive to create designs reflecting consideration for
medical safety and security and to develop products that alleviate environmental burden in the fields of products related
to transfusion, diabetes, dialysis, vascular and CVS. It shall also mount approaches to develop products that are gentle-7-

to medical workers, patients, and the environment, while actively marketing and expanding sales of products
addressing the diversifying needs and seeds in the market, to improve business results.
The Pharmaceutical Sales Division is faced with even more difficult circumstances in domestic business related togeneric drugs. It shall endeavor to increase the brand power of Nipro as an all-around medical enterprise while
continuing to heighten our presence in the market and strengthen price competitiveness.
In our Pharmaceutical-Related Business, our main agendum is improving production capacity, stabilizing supply andachieving a rigorous reduction of manufacturing costs to increase our price competitiveness as the government
accelerates deployment of measures to curb medical costs. With a view to supplying products to the global market, it isalso essential for us to improve our setups for quality assurance in both the software and hardware in order to fully meetpharmaceutical quality standards in the United States and Europe. At the same time, we consider the construction ofmanagement to meet country risks at our overseas plants a major task, and shall take action on it in each culture.
In the Glass-Related Business, we will construct a system leveraging our manufacturing technology capabilities toenable the stable manufacture and sale of high-quality products and establish a globally complementary system bylinking the domestic and overseas plants and unifying our product specifications and quality standards. In addition, we
will work to build the Nipro brand by making the Biwako Factory, which completed construction in June 2014, theflagship of the Nipro Group glass processing plants and upgrading the plant’s interior environment to transform it into aworld-class plant inside and out.
4. Basic Thinking Underlying the Concept of Accounting Standard
J-GAAP is adopted in the current period under review. The Company will consider the application of IFRS while
watching future trends carefully.

-8-5. Consolidated Financial Statements(1) [ Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2015
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Bulidings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation and impairment loss
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-9-

As of
March 31, 2016

112,871
114,477
67,412
12,14922,913
6,963
16,341(2,783)350,346

126,667
113,235
68,683
10,16723,851
6,380
20,115(983)
368,117

174,138(81,157)
92,980212,911(150,454)
62,45722,027
3,058(1,957)
1,100
31,242
42,619(32,232)
10,387220,195

184,037(84,826)
99,211
217,074(154,911)
62,162
21,123
3,229(2,208)
1,021
27,643
46,976(34,382)
12,594
223,756

26,364
1,625
16,37944,36928,8762,469
13,56644,91364,076140
7,899
11,901(3,622)80,395344,960
695,306

58,560253
3,947
15,625(6,292)
72,094
340,764
708,882(Millions of yen)
As ofMarch 31, 2015
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued directors' bounuses
Income taxes payable
Provision for bounuses
Provision for directors' bounuses
Notes payable-facilities
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds
with subscription rights to shares
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Provision for directors' retirement benefits
Provision for loss on litigation
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

As ofMarch 31, 2016

51,750136,359
10,00027,840828
11,679
436
3,934
3,621
123
2,641
29,184278,401

56,185
125,848
10,0002,262
1,044
12,004
389
4,266
3,733
79
12,753
23,579252,147

20,592

18,330－25,000205,621
3,127
2,162
3,841
524
11
2,214
238,095
516,496

224,945
3,132
1,985
5,017
553
18
2,245
281,227
533,375

84,397635
58,885(1,686)142,231

84,397－73,067(1,475)
155,990(2,311)39
27,870(170)
25,427
11,150178,810695,306(3,347)(12)
14,187(821)
10,007
9,509
175,507
708,882

(2) [Consolidated Statements of Income and Consolidated Statement of Comprehensive Income]Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Expenses for operation preparation
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Gain on sales of investments in capitalof subsidiaries and associates
Other
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent asssets
Loss on retirement of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on reduction of noncurrent assets
Amortization of goodwill
Loss on step acquisitions
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent- 11 -FY2014(From April 1, 2014
to March 31, 2015)
325,084
225,525
99,55882,987
16,571(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)
366,650
250,773
115,876
91,671
24,204

767
1,911
4,923
－
2,127
9,729

733
1,449
－
879
1,894
4,955

4,066
168
1,459
－
944
6,639
19,661

4,501
95
1,046
7,181
1,711
14,536
14,623

1,530
43
3,402
－

228
3,721
－
14,072

－

1,601

62
5,039

154
19,777

331
341
65
2,977
14
444
－
－
617
4,793
19,908
8,349(1,253)
7,095
12,812341
12,470

82
455
0
289
3,124

－
2,238
1,668
258
8,116
26,284
2,110
4,696
6,806
19,478(240)
19,718

Consolidated Statements of Comprehensive Income

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income
attributable to owners of parent
Comprehensive income
attributable to non-controlling interests- 12 -FY2014(From April 1, 2014
to March 31, 2015)
12,812(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)
19,4785,133
014,655
187(1,035)(51)(13,860)
(655)

1

(1)

19,97832,791(15,603)
3,874

32,126

4,298

665

(423)

(3) [Consolidated Statements of Shareholders' Equity]

FY2014(From April 1, 2014
to March 31, 2015)
Shareholder's equity
CapitalBalance at beginning of year
Increase (decrease) during the period
Net increase (decrease) during the period
Balance at end of year
Capital Surplus
Balance at beginning of year
Increase (decrease) during the period
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year
Earned surplus
Balance at beginning of year
Cumulative effects of changes in accounting policies
Balance of beginning of year after changes in account policies
Increase (decrease) during the period
Dividend of surplus
Profit attributable to owners of parent
Disposal of treasury stock
Change of scope of consolidation
Other
Net increase (decrease) during the period
Balance at end of year
Treasury stock
Balance at beginning of year
Increase (decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year
Total Shareholders' equity
Balance at beginning of year
Cumulative effects of changes in accounting policies
Balance of beginning of year after change in account policies
Increase (decrease) during the period
Dividend of surplus
Profit attributable to owners of parent
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Other
Net increase (decrease) during the period
Balance at end of year

- 13 -(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

84,39784,397－84,397－84,397

688

635

(53)
(53)
635

(635)
(635)
－

52,567
97
52,66558,885(4,992)
12,470
(932)
(325)
(1)
6,219
58,885(5,371)
19,718(17,999)(1,686)(0)
16,313
16,312(1,686)

(3)
215
211
(1,475)

119,654
97
119,752

142,231－
142,231(4,992)
12,470(0)15,328(325)(1)
22,479142,231(5,371)
19,718
(3)
215
－
(800)
13,758
155,990

58,885(165)
14,18273,067

(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

FY2014(From April 1, 2014
to March 31, 2015)
Accumulated other comprehensive income
Valuation differences on available-for-sale secrities
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Deferred gains or losses on hedges
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Foreign surrency translation adjustment
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Remeasurements of defined benefit plans
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Total accumulated other comprehensive income
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Non-controlling interests
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Total net assets
Balance at beginning of year
Cumulative effects of changes in accounting policies
Balance of beginning of year after change in account policies
Increase (decrease) during the period
Dividend of surplus
Profit attributable to owners of parent
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Other
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year

- 14 -(7,443)(2,311)

5,132(1,036)

5,132(2,311)(1,036)(3,347)

38

39

0

(51)

0
39

(51)
(12)

13,53527,87014,335(13,682)

14,33527,870(13,682)
14,187

(357)

(170)

186

(650)

186
(170)

(650)
(821)

5,772

25,427

19,655(15,420)

19,65525,427(15,420)
10,007

10,533

11,150617(1,640)617
11,150(1,640)9,509

135,96097
136,058

178,810－
178,810(4,992)
12,470(0)15,328(325)(1)(5,371)
19,718
(3)
215
－
(800)

20,272(17,061)

42,751
178,810(3,302)
175,507(4) [ Consolidated Statements of Cash Flows ](Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

FY2014(From April 1, 2014
to March 31, 2015)
Net cash provided by (used in) operating activities
Income before income taxes and Non-controlling interests

Depreciation
Impairment loss
Amortization of goodwill
Equity in (earnings) losses of affiliates
Increase (decrease) in allowance for doubtful accounts

Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Loss (gain) on investments in capital of subsidiaries and associates

Gain (loss) on step acquisitions
Decrease (increase) in notes and accounts receivable-trade

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade

Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other loss (gain)
SubtotalInterest and dividends income received
Interest expenses paid
Other proceeds
Other payments
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments for purchase of investment securities
Proceeds from sales of investment securities
Payments for purchase of investments in
subsidiaries
resulting in change in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
Payments for transfer of business
Payments for purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Payments for retirement of noncurrent assets
Proceeds from governmental subsidies
for investment in property and equipment
Net decrease (increase) in short-term loans receivable

Payments of loans receivable
Proceeds from collection of loans receivable
Other payments
Other proceeds
Net cash provided by (used in) investment activities- 15 -

19,90827,667
65
5,837
168
1,291
179
(2,679)4,066(2,800)(425)－－－(6,765)(8,120)
1,146
5,501
2,511
(1,142)
46,4122,550(3,988)201(214)(16,979)
27,981

26,28430,147
0
3,686
95
1,023
488
(2,182)
4,501
1,645
289
(14,072)(1,601)
2,238(5,681)(6,704)
6,161(9,795)814(342)
36,996
2,180(4,505)334(292)(4,779)29,934(11,908)
12,806(3,272)
11,519(14,506)
13,516
(512)
1,114

(754)

－

－

382

－

17,262－

2,249(1,400)(40,680)
3,794
(42)

－
(41,936)
2,575
(122)

26

3,721

(29)
(152)
335
(1)
45
(29,713)(806)(1,615)
2,172
(10)
－
(16,513)(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

FY2014(From April 1, 2014
to March 31, 2015)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds form issuance of bonds
Redemption of bonds
Proceeds from sales of treasury shares
Purchase of treasury shares
Proceeds from sales and leasebacks
Repayments of finance lease obligations
Cash dividends paid
Cash dividends paid to minority shareholders
Payments from changes in ownership interests in subsidiaries

that do not result in change in scope of consolidation

Payments for investments in subsidiaries
that do not result in change in scope of consolidation

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 equivalentsfrom newly consolidated subsidiary
Cash and cash equivalents at end of period- 16 -

3,209
83,330(52,383)
2,983(4,715)213(1)－(1,030)(4,987)(20)(32,858)
105,369(66,011)24,967(27,840)
215
(16)
1,317
(1,792)(5,362)(22)－(1,349)－(250)

26,5981,784
26,65170,892(3,633)
3,218
13,004
98,199655

773

98,199111,977

(5) Notes to Consolidated Financial Statement(Notes Related to Going Concern)
N/A(Basis of Preparation for the Consolidated Financial Statements)
1) Scope of consolidation[1] Consolidated subsidiaries: 79
Name of representative consolidated subsidiaries,
・ Nipro Medical Industries Co., Ltd.
・ Nipro Europe N.V.
・ Nipro Pharma Corporation.
・ Nipro Medical (Hefei) Co., LTD.
・ Nipro India Corporation Pvt Ltd.

・
・
・
・
・

Nipro (Thailand) Corporation Ltd.
Nipro Medical Corporation
Nipro Patch CO., LTD.
Goodman CO., LTD.
Zensei Pharmaceutical Industries Co., Ltd.

Four companies including Nipro Europe Group Companies N.V. and eight companies including Nipro D.Med
International GmbH (former Rigi Medizintechnik GmbH) increased in materiality and they are included in scope of
consolidation from the consolidated fiscal year 2015. Due to acquisition of the stock, Infraredx, Inc. is included inscope of consolidation from the consolidated fiscal year 2015 and the equity method is no longer applied.
Five companies including Nipro Diagnostics, Inc. were removed from the consolidation of fiscal year 2015 after
transferring all stock. Shanghai Nissho Vacuum Flask Refill Co. Ltd. was removed from the consolidation of fiscal
year 2015 after transferring all investments in capital. Nipro Glass Germany AG was removed from the consolidationof fiscal year 2015 since the company was absorbed into Nipro PharmaPackaging Germany GmbH and extinguished.
[2] Name of representative unconsolidated subsidiary･ Nissho Insurance Services Co., Ltd.
The unconsolidated subsidiaries are small-sized companies, whose combined total assets, net sales, net income
and earned surplus in the aggregate (averaged for recent 5 years) are not material to the consolidated financial
statements.
2) Application of equity method[1] Number of affiliate accounted for by the equity method: 0･
Due to acquisition of the stock, Infraredx, Inc. is included in scope of consolidation from the consolidated
fiscal year 2015 and the equity method is no longer applied.
[2] Name of representative unconsolidated subsidiary not accounted for by the equity method:･ Nissho Insurance Services Co., Ltd.
Name of affiliate not accounted for by the equity method:･ Yuki Gosei Kogyo Co., Ltd.
The equity method is not applied to the unconsolidated subsidiaries and the affiliate company, since they are notmaterial to the consolidated net income (amounts worth to equity) and earned surplus(amounts worth to equity) etc.,
either individually or in the aggregate.
3) Accounting period of consolidated subsidiaries
Among the main consolidated subsidiaries, accounts closing date of the foreign subsidiary is December 31.
Consolidated financial statements as of that date are used in preparing for consolidated financial statements, andnecessary adjustments are made to reflect significant transactions that occurred between December 31 and March
31.
4) Accounting principles and practices[1] Valuation standards and methods for significant assets
Securities
Available-for-sale securities
Securities with market quotations ---------- Valued at the market price quoted on the balance sheet date.
(Differences in valuation are presented as a component ofshareholders’ equity. Costs are determined by the weighted
average method.)
Securities without market quotations -------- Valued at cost by the weighted average method- 17 -

Inventories
Valued at cost by the weighted average method (Writing down method below cost to the net selling value fordecreased profitability)
Derivatives transaction
Valued at the market price[2] Method of depreciation and amortization for significant depreciable assets
Property, plant and equipment ----- Mainly Declining-balance method(Excluding lease assets)
However, buildings acquired after April 1, 1998 (excluding attached structures),are depreciated by straight-line method.
The foreign subsidiaries use straight-line method.
Lease assets
Lease assets under the finance lease transaction that does not transfer ownership---------- Recorded by straight-line method its useful lives are equals to the lease term
and the residual values are equal to zero.
We still have adopted the similar manner to an ordinary rental transaction for
the finance lease transactions that do not transfer ownership and the starting
dates of the lease transactions were before March 31, 2008.
[3] Standards for recognition of significant allowances
Allowance for double accounts ---- In order to cover the probable losses on collection, an allowance for doubtful
accounts is provided for the estimated amount of uncollectible receivables.
For general receivables, the amount of provision is based on historical write-off
rates, and for the doubtful receivables, based on the specific collectability.
Provision for bonuses ---------------- In order to cover the payment of bonuses to employees, an allowance isprovided for the estimated amount of bonuses to be paid, prorated for the
consolidated accounting period.
Provision for directors’ bonuses ---- In order to cover the payment of bonuses to directors and corporate auditors, anallowance is provided for the estimated amount of bonuses to be paid, prorated
for the consolidated accounting period.
Provision for
directors’ retirement benefits ------- An allowance is provided for severance indemnity for directors and corporate
directors based on the amounts to be paid at the end of the consolidated
accounting period.
[4] Accounting Treatment of Retirement Benefits
Method of attributing expected benefit to periods
In calculating retirement benefit obligation, the Company attributed expected benefit to the periods on a
payment calculation basis.
Accounting Method of Actuarial gains and losses and prior service costs
Prior service costs are amortized on a straight-line basis over the certain period (generally 5 years) which is nolonger than the expected average remaining working lives of the employees when they occur.
Actuarial gains and losses are amortized on a straight-line basis over the certain period (generally 5years)
which is no longer than the expected average remaining working lives of the employees from the following theyear which they arise.
[5] Amortization of goodwill
Goodwill is amortized using the straight-line method over the estimated benefit period of the asset.
[6] Range of cash and cash equivalent carried on the consolidated cash flow statement.
Cash and cash equivalent carried on the cash flow statement consist of cash on hand, cash in banks that are able
to withdraw as needed, and short-term investment that will be matured within three months after acquisition, easy to
be converted into cash without much risks from fluctuation of prices.
[7] Significant method of hedge accounting
Method of hedge accounting
The deferral hedge accounting method is applied in principle. Designation accounting is used for foreignexchange swap that meet the requirements for designation accounting, and exceptional accounting is used forinterest rate swap that meet the requirements for exceptional accounting.
Hedge instrument and hedge items[Hedge instruments]
Foreign exchange swaps
Interest rate swaps[Hedge items]
Foreign currency borrowings
Borrowings

Hedge policy
The Company uses foreign exchange swaps and interest rate swaps to mitigate the foreign currency risk and- 18 -

the interest rate risk involved in procuring funds and hedge items are identified on an individual contract basis.
Method for evaluating the validity of hedges
For items covered by designation or exceptional accounting, the validity of the hedge is not evaluated.
[8] Other significant basis on preparation for consolidated financial statements
Consumption taxes
Consumption taxes are excluded from revenues and expenses accounts and consumption taxes unqualified
for deduction for tax purposes for assets, etc. are reported as period expenses in the consolidated accounting
period.
(Change in Accounting Policies)
Application of the Accounting Standard for Business Combinations and related accounting standards
The Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13,
2013; hereinafter the “Accounting Standard for Business Combinations”), “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, September 13, 2013; hereinafter the “Accounting Standard for Consolidated Financial
Statements”), and “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013; hereinafter
the “Accounting Standard for Business Divestitures”), etc., effective from the first quarter under review. As a result, themethod of recording the amount of difference caused by changes in the Company’s ownership interests in subsidiaries in thecase of subsidiaries under ongoing control of the Company was changed to one in which it is recorded as capital surplus,
and the method of recording acquisition-related costs was changed to one in which they are recognized as expenses for the
fiscal year in which they are incurred.
Furthermore, for business combinations carried out on or after the beginning of the first quarter under review, theaccounting method was changed to one in which the reviewed acquisition cost allocation resulting from the finalization of thetentative accounting treatment is reflected in the quarterly consolidated financial statements for the quarterly period in which
the business combination occurs.
In addition, a change in the presentation of quarterly net income, etc. and a change in the presentation of the minority
interests to non-controlling interests were adopted. In order to reflect these changes in presentation, the quarterly
consolidated financial statements for the third quarter of the previous fiscal year and the consolidated financial statements forthe previous fiscal year were reclassified.
For the consolidated cash flow, cash flow related to acquisition or sales of shares of a subsidiary within the scope ofchanges are classified into net cash provided by investing activities, and cash flow related to purchase cost of shares ofsubsidiaries resulting in change in scope of consolidation or purchases or sales cost of shares of subsidiary within the scopeof changes are classified into net cash provided by operating activities.
The application of the Accounting Standard for Business Combinations and related accounting standards is subject to thetransitional treatment provided for in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations, Paragraph44-5 (4) of the Accounting Standard for Consolidated Financial Statements, and Paragraph 57-4 (4) of the AccountingStandard for Business Divestitures. Accordingly, these standards have been applied prospectively from the beginning of thefirst quarter under review.
As a result, capital surplus decreased 635 million yen and retained earnings decreased 111 million yen in the current
period under review. In addition, consolidated operating income, consolidated ordinary income increased 55 million yen andconsolidated income before income taxes increased 51 million yen.
(Notes to the Consolidated Balance Sheets)(Previous period)
1) Pledged assets
2) Discounted notes receivable3) Accounts related to unconsolidated subsidiaries
and affiliate companies
Investment securities (stock)
Other of investments and other assets(Investments in capital)(Current Period)

48,437

mil.yen

19,987

mil.yen182

mil.yen100

mil.yen5,763

mil.yen2,541

mil.yen-mil.yen257

mil.yen(Notes to the Consolidated Statement of Income)(Previous period)
Research and development expenditure included inselling general and administrative expenses andmanufacturing cost.

(Notes to the Consolidated Statements of Shareholders’ equity)
Previous period (From April 1, 2014 to March 31, 2015)- 19 -

8,645

mil.yen(Current Period)
10,269mil.yen1. Sort and total numbers of shared issues
Sort of shares
Number of shares
as of April 1, 2014
Common stock
171,459,479

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2015
171,459,479

2. Sort and numbers of treasury stock
Sort of shares
Number of shares
Increased
Decreased
Number of shares
as of April 1, 2014
numbers
numbers
As of March 31, 2015
Common stock
20,730,973
959
18,832,071
1,899,861(Note) 1. Number of the stocks increased during the period due to purchase of odd-lot shares.
2. Number of the stocks decreased during the period due to the following reasons; 18,388,865 shares by
exercise of yen denominated convertible bond due in 2015, 6 shares by sale of odd-lot shares, 234,400
shares sold by Trust Account E to the Association.
3. Number of the stocks as of the beginning of the period included,1,187,500 shares owned by Trust
Account E, and number of the stocks as of the end of the period included, 953,100 shares owned by
Trust Account E.
3. Dividends(1) Amount of dividends paid
Decision
June 26, 2014at ordinary generalshareholders’ meeting
November 12, 2014
at board of directors meeting

Sort of shares

Total amount ofdividends paid

Common stock

Millions of yen
2,202

Dividends
per shares
Yen
14.50

Common stock

Millions of yen
2,789

Yen
18.00

Basis date

Effective date

March 31,2014

June 27, 2014

September 30,2014

December 9, 2014

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in the next
consolidated accounting period.
Sort ofProceeds ofDividends
Effective
Total amount of
Scheduled Decision
Basis datedividends paid
sharesdividends
per shares
date
June 26, 2015at ordinary generalshareholders’ meeting

Commonstock

EarnedsurplusMillions of yen
2,472

Yen
14.50

March 31, 2015

June 29, 2015

(Note) Total amount of dividends paid includes the dividend on shares owned by Trust Account E, 13 million yen.

Current period (From April 1, 2015 to March 31, 2016)
1. Sort and total numbers of shared issues
Sort of shares
Number of shares
as of April 1, 2015
Common stock
171,459,479

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2016
171,459,479

2. Sort and numbers of treasury stock
Sort of shares
Number of shares
Increased
Decreased
Number of shares
as of April 1, 2015
numbers
numbers
As of March 31, 2016
Common stock
1,899,861
3,126
236,800
1,666,187(Notes) 1. Number of the stocks increased during the period due to purchase of odd-lot shares.
2. Number of the stocks decreased during the period due to the shares sold by Trust Account E to the
Association.
3. Number of the stocks as of the beginning of the period included 953,100 shares owned by Trust Account E,
and number of the stocks as of the end of the period included 716,300 shares owned by Trust Account E.
3. Dividends(1) Amount of dividends paid
Decision
June 26, 2015at ordinary generalshareholders’ meeting
November 12, 2015
at board of directors meeting

Sort of shares

Total amount ofdividends paid

Common stock

Millions of yen
2,472

Dividends
per shares
Yen
14.50

Basis date

Effective date

March 31,2015

June 29, 2015

Millions of yen
Yen
September 30,2015 December 8, 2015
2,898
17.00
(Note) 1.Total amount of dividends paid decided in the ordinal general shareholders’ meeting on June 26, 2015
includes the dividend on shares owned by Trust Account E, 13 million yen.
2.Total amount of dividends paid decided in the board of directors meeting on November 11, 2015 includes
the dividend on shares owned by Trust Account E, 14 million yen.
Common stock(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in the next
consolidated accounting period.

- 20 -

Scheduled Decision

Sort ofsharesProceeds ofdividends

Total amount ofdividends paid

Dividends
per shares

Basis date

Effective
date

June 26, 2016at ordinary generalshareholders’ meeting

Commonstock

EarnedsurplusMillions of yen
2,813

Yen
16.50

March 31, 2016

June 29, 2016

(Note) Total amount of dividends paid includes the dividend on shares owned by Trust Account E, 11 million yen.
(Segment Information)[Segment Information]
1. Outline of reportable operating segments
Applied ASBJ Statement No.17 “The Accounting Standard for Disclosures of Segments of an Enterprise and RelatedInformation”, the reportable operating segments are components of an entity for which separate financial information isavailable and evaluated regularly by the board of director in determining the allocation of management resources and inassessing performance. We currently operate our business on a stand-alone basis with the divisional organization andevaluate the performance of sales and manufacture of each division regardless of their products. Accordingly, we divide
our operations into 3 reportable operating segments on the basis of its main products: Medical-Related,
Pharmaceuticals-Related and Glass-Related.

*Medical-RelatedDomestic division sells injection and infusion products, artificial organ products, highly functional products, dialysis
products diabetic products and pharmaceuticals such as generic and kit products. In the global business division, head
office plays the center role and place overseas sales and manufacturing base for medical equipment and sales injection
and infusion products, artificial organ products and diabetic products.
*Pharmaceutical-Related
Pharmaceutical business division sells container for combination products and sells pharmaceuticals frompharmaceutical companies on a consignment basis. Domestic subsidiaries sell and manufacture injectable drug, oral
drugs and combination products (Kit injectable).
*Glass-Related
MP Glass division sells glass for vials and ampoules in the field of glass for medical use and sells glass for thermos
bottles and glass for lighting purpose in the field of glass & materials products. Overseas subsidiaries manufacture andsell tube glass and glass for vials and ampoules for medical use.
2. Method of calculating sales and profit by reportable operating segment
The accounting process of the segments follows the accounting principles and practices listed in Basis of Preparation for
the Consolidated Financial Statements. Profit of the segment is based on operating income. Internal revenue and transfer
to revenue between segments are based on the market realized price.
3. Information on amount of sales, profit or loss, assets and other items by reportable segment
FY2014 (From April 1, 2014 to March 31, 2015)(Millions of yen)
Total

Adjustment(Note.2)

Consolidated
financialstatements(Note.3)

Reportable Segment
Other(Note.1)

Medical-Related

Pharmaceutical-Related

237,777

57,372

29,830324,979

104

325,084-

325,084

Glass-RelatedTotal

Net sales(1)Sales to third parties(2)Inter-segment sales
and transfers
Total
Segment profit

1,535

8,400

774

10,71035

10,745(10,745)-239,31223,812

65,772
10,55330,604(2,889)335,690
31,476139131335,829
31,607(10,745)(15,036)

325,084
16,571

Segment assets

350,869

137,570

70,175

558,61555

558,671

136,635

695,306

13,356

9,658

3,023

25,948-25,948

1,718

27,667

3,912

4

1,920

5,837

-

5,837

-

5,837

Other items(1) Depreciationamortizationand(2) Amortization of goodwill(3) Increase in tangible and14,485
17,853
8,429
40,76840,7686,929
47,698intangible fixed assets(Note)
1. “Other” is the business segment which is not included in the reporting segment and consist of real estate
income and sales by headquarter.
2. Adjustment is as follows.

- 21 -

(1) Adjustment for the segment profit of (15,036) million yen includes adjustment for unrealized income of(3,041) million yen and corporate cost of (11,994) million yen. Corporate cost consists primarily of sales,
general and administrative expenses and research and development cost which do not belong to thereporting segment.
(2) Adjustment for the segment assets of 136,635 million yen includes elimination of inter-segment transaction of(10,932) million yen and corporate assets of 147,568 million yen. Corporate assets consisted primarily ofcash and deposit, investment securities, assets for development and assets for management division of head
office which do not belong to the reporting segment.
(3) Adjustment for depreciation and amortization of 1,718 million yen is for corporate assets. Depreciation andamortization and increase in tangible and intangible fixed assets include long-term prepaid expenses.
(4) Adjustment for increase in tangible and intangible fixed assets is increase in corporate assts.
3. Segment profit is adjusted to the operating income on the consolidated statements of income.
4. Amortization of goodwill includes 444 million yen of Amortization of goodwill posted in Extraordinary losses.
FY2015 (From April 1, 2015 to March 31, 2016)(Millions of yen)
Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
financialstatements(Note.3)

Reportable Segment
Medical-Related

Pharmaceutical-Related

272,167

62,26632,184

366,61832

366,650-

366,650

Glass-RelatedTotal

Net sales(1)Sales to third parties(2)Inter-segment sales
and transfers
Total
Segment profit

1,737

8,814

873

11,426

38

11,464(11,464)-

273,905
28,20371,08012,05933,058(1,618)378,044
38,64570
61

378,115
38,706(11,464)(14,502)366,650
24,204

Segment assets

338,888

154,304

66,811560,00555

560,060

148,822

708,882

15,133

9,326

3,402

27,863-

27,8632,283

30,147(5) Amortization of goodwill

2,648

4

1,033

3,686

-

3,686

-

3,686

(6) Increase in tangible andintangible fixed assets

24,54921,277

6,094

51,920-51,9205,180

57,101Other items(4) Depreciationamortization(Note)

4.

and1. “Other” is the business segment which is not included in the reporting segment and consist of real estate
income and sales by headquarter.
2. Adjustment is as follows.
(1) Adjustment for the segment profit of (14,502) million yen includes adjustment for unrealized income of(1,069) million yen and corporate cost of (13,432) million yen. Corporate cost consists primarily of sales,
general and administrative expenses and research and development cost which do not belong to thereporting segment.
(2) Adjustment for the segment assets of 148,822 million yen includes elimination of inter-segment transaction of(10,777) million yen and corporate assets of 159,599 million yen. Corporate assets consisted primarily ofcash and deposit, investment securities, assets for development and assets for management division of head
office which do not belong to the reporting segment.
(3) Adjustment for depreciation and amortization of 2,283 million yen is for corporate assets. Depreciation andamortization and increase in tangible and intangible fixed assets include long-term prepaid expenses.
(4) Adjustment for increase in tangible and intangible fixed assets is increase in corporate assts.
3. Segment profit is adjusted to the operating income on the consolidated statements of income.

Change in Reportable Segment
Effective from this reporting period, the method of recording the amount of difference caused by changes in the
Company’s ownership interests in subsidiaries in the case of subsidiaries under ongoing control of the Company waschanged to one in which it is recorded as capital surplus, and the method of recording acquisition-related costs waschanged to one in which they are recognized as expenses for the fiscal year in which they are incurred.
As a result, the amount of segment profit in Pharmaceutical-Related business in the current period under review
increased 0 million yen compared to the conventional method, in Glass-Related business, 55 million yen.

- 22 -

[Related Information]
FY2014 (From April 1, 2014 to March 31, 2015)
1. Information for each product and service
Disclosure is omitted as the same information is disclosed in segment information.
2. Information for each area
(1) Net sales(Millions of yen)Japan

America

182,148

Europe62,661(2) Property, plant and equipment
Japan

42,874

America

108,210

Asia
37,399Europe19,664

Total(Millions of yen)
Total

Asia
12,965325,084

79,354

220,195

3. Information about impairment loss on fixed assets by reportable segments(Millions of yen)
Reportbale segment
Pharmaceutical-Related

Medical-Related

0

Total

Glass-Related

-

65

Other
65

Total
-

65

4. Information about unamortized balance of goodwill by reportable segment(Millions of yen)
Reportbale segment
Medical-Related

Balance of theficical year-end

Pharmaceutical-Related

19,837

Total

Glass-Related

13

6,513

Other

26,364

Total-

26,364FY2015 (From April 1, 2015 to March 31, 2016)
1. Information for each product and service
Disclosure is omitted as the same information is disclosed in segment information.
2. Information for each area
(1) Net sales
Japan

America

203,461

Europe72,416(Millions of yen)
Total

Asia
46,15644,615(2) Property, plant and equipment
Japan366,650(Millions of yen)

America

125,708

Europe9,585

Asia
14,685

Total
73,777

223,756

3. Information about impairment loss on fixed assets by reportable segments(Millions of yen)
Reportbale segment
Medical-Related

Pharmaceutical-Related0

Total

Glass-Related

-

-

Other
0

Total
-

0

4. Information about unamortized balance of goodwill by reportable segment(Millions of yen)
Reportbale segment
Medical-Related

Balance of theficical year-end

23,718

Pharmaceutical-Related

Glass-Related

8- 23 -

5,149

Total
28,876

Other

Total
-

28,876(Per Share Information)
Previous period(From April 1, 2014
to March 31, 2015)

Current period(From April 1, 2015
to March 31, 2016)

Net assets per share

988.79 yen

977.64 yen

Earnings per share

80.96 yen

116.22 yen-

114.68 yen

Diluted Earnings per share
Base of the calculation is as follow;
1. Net assets per share

Previous period(As of March 31, 2015)

Current period(As of March 31, 2016)

Total net assets in B/S (million yen)

178,810

175,507

Amount to be deducted from total net assets in B/S(Million yen)
Non-controlling interests

11,1509,509

Net assets related to the common stocks(million yen)

167,659

165,997

Common stocks issued (Thousands shares)

171,459

171,459

Treasury stocks of common stock (Thousands shares)

1,899

1,666

Number of common stocks utilized for computation of net
assets per share (thousand shares)

169,559

169,793

2. Earnings per share and diluted earnings per share
Previous period(From April 1, 2014
To March 31, 2015)

Current period(From April 1, 2015
To March 31, 2016)

Earnings per share
Profit attributable to owners of parent (Million yen)

12,47019,718--12,47019,718154,045

169,661

Amount not attributed to the common stock (Million yen)
Profit attributable to owners of parent available forcommon stock (Million yen)
Average shares of the common stock during the period(Thousands shares)
Diluted earnings per share
Adjustment for profit attributable to owners of parent(Million yen)
Number of common stock increased
Stock acquisiton right (thousand shares)
Overview of the potential shares not included in the Consolidated subsidiary:computation of diluted earning per share because of not Goodman Co., Ltd.
having a dilutive effect

-

-

-

2,289

Stock Option decieded in the
Board of Directors Meetingon November 25, 2005
(Common stock
253 thousand shares)
Stock Option decieded in the
Board of Directors Meetingon April 27, 2006
(Common stock
2 thousand shares)(Material Subsequent Event)N/A- 24 --

6. Non-consolidated Financial Statements(1) [ Non-consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2015
AssetsCurrent Assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable from subsidiaries and affiliates
Accounts receivable-otherConsumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Bulidings
Accumulated depreciation and impairment loss
Buildings, net
Structures
Accumulated depreciation and impairment loss
Structures, net
Machinery, equipment
Accumulated depreciation and impairment loss
Machinery equipment, net
VehiclesAccumulated depreciation and impairment loss
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment- 25 -

As ofMarch 31, 2016

61,466
16,27378,70528,520
3,115
3,221
529
296
1,123
5,974
2,720
543
303
(11)
202,782

75,385
16,735
86,13931,786
3,461
3,030
636
361
954
2,756
2,388
1,551
296
(11)
225,472

40,382(23,168)
17,213
2,193(1,569)624
52,807(47,468)
5,339
97
(87)
9
16,932(14,794)
2,137
8,303
1,007
(520)
487
1,655
35,77142,966(24,184)
18,782
2,321(1,651)
669
59,230(49,644)
9,585
103
(91)
12
18,507(15,742)
2,764
8,335
922
(564)
358
2,855
43,364

(Millions of yen)
As ofMarch 31, 2015
Intangible assets
Goodwill
Patent right
Right of trademark
SoftwareLease assets
Telephone subscription right
Other
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital
Investments in capital of subsidiaries and affiliates
Long-term loans recievable
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy,
claims provable in rehabilitation and other
Long-term prepaid expenses
Prepaid pension cost
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-other
Directors' bonuses payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Unearned revenue
Provision for bounuses
Provision for sales returns
Notes payable-facilities
Other
Total current liabilities- 26 -

As ofMarch 31, 2016

3,579
9
3
862
1,620
23
84
6,183

2,699
5
3
802
2,466
23
91
6,092

56,182160,043
037,64628
8,223

53,829132,277
039,756
21
8,722

3,642

3,086

1,901
249
4,050
620
(2,897)(2,629)267,062
309,017
511,800

1,425
269
3,634
1,213
(2,723)－
241,514290,970
516,443

12,97435,09230,30037,743
10,00026,400
356
7,485
436
819
2,330
8
102
36
1,239
31
1,752
516
167,624

15,36739,522－60,93810,000
400
676
5,995
389
865
165
7
97
26
1,321
33
5,728
1,612
143,147

(Millions of yen)
As ofMarch 31, 2015
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds with subscription rights to shares
Long-term loans payable
Lease obligations
Long-term unearned revenue
Provision for retirement benefits
Provision for directors' retirement benefits
Long-term guarantee deposited
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for dividends
Reserve for advanced depreciation of noncurrent assets
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustmentｓ
Total net assets
Total liabilities and net assets- 27 -

As ofMarch 31, 2016

18,200－163,238
1,799
48
1,413
301
1,630
186,632
354,257

17,80025,000163,472
2,367
22
1,471
348
1,715
212,197355,345

84,39784,397

635
635

635
635

2,678

3,215

16
98
66,7358,278
77,805(1,686)
161,152

16
105
72,435
6,363
82,135(1,475)
165,693(3,608)(3,608)
157,543
511,800(4,595)(4,595)
161,098
516,443

(2) [Non-consolidated Statements of Income and Non-consolidated Statement of Comprehensive Income]Non-consolidated Statements of Income(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

FY2014(From April 1, 2014
to March 31, 2015)
Net sales
Net sales of merchandise and finished goods
Rent income of real estate
Total net sales
Cost of sales
Beginning merchandise and finished goods
Cost of products manufactured
Cost of purchased merchandise and finished goods-COS
Cost of real estate rent
Total
Ending merchandise and finished goods
Total cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Reversal of allowance for doubtful accounts
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Provision of allowance for doubtful accounts
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on sales of investment securities
Gain on sales of investment in capital ofsubsidiaries and associates
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Loss on sales of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss on sales of shares of subsidiaries and associates
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income- 28 -

208,612139
208,751

233,34370
233,414

29,192
41,672
114,1717
185,044
28,520156,524
52,22636,881
15,34528,52042,554135,1798
206,262
31,786
174,476
58,937
38,697
20,240

375
3,852
－
4,757
1,044
10,030

518
4,254
396
－
557
5,725

2,053
504
－
－
482
3,039
22,335

2,054
487
223
4,243
750
7,759
18,206

1,517
26
3,397

34
31
－

－

937

10
4,951

－
1,003

212
3,126
3,973
－
327
7,639
19,647
5,597
2,031
7,628
12,018

38
308
1,987
4,291
234
6,859
12,350
1,751
897
2,649
9,700

(3) [Non-consolidated Statements of Shareholders' Equity]

FY2014(From April 1, 2014
to March 31, 2015)
Shareholder's equity
CapitalBalance at beginning of year
Increase (decrease) during the period
Net increase (decrease) during the period
Balance at end of year
Capital surplus
Capital reserve
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) during the period
Balance at end of year
Other capital surplus
Balance at beginning of year
Increase (decrease) during the period
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year
Total capital surplus
Balance at beginning of year
Increase (decrease) during the period
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year
Earned surplus
Earned reserve
Balance at beginning of year
Increase (decrease) during the period
Provision of legal retained earnings
Net increase (decrease) during the period
Balance at end of year
Other earned reserve
Reserve for dividends
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) during the period
Balance at end of year

- 29 -(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

84,39784,397－84,397－84,397

635

635

－
635

－
635

53

－

(53)
(53)
－

－
－
－

688

635

(53)
(53)
635

－
－
635

2,178

2,678

499
499
2,678

537
537
3,215

16

16

－
16

－
16

FY2014(From April 1, 2014
to March 31, 2015)
Reserve for advanced depreciation of noncurrent assets
Balance at beginning of year
Increase (decrease) during the period
Adjustment to reserve due to change in tax rate
Net increase (decrease) during the period
Balance at end of year
General reserve
Balance at beginning of year
Increase (decrease) during the period
Provision of general reserve
Net increase (decrease) during the period
Balance at end of year
Earned surplus carried forward
Balance at beginning of year
Cumulative effects of changes in accounting policies
Balance of beginning of year after change in account policies
Increase (decrease) during the period
Dividends of surplus
Net income
Provision of legal retained earnings
Adjustment to reserve due to change in tax rate
Provision of general reserve
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year
Total earned surplus
Balance at beginning of year
Cumulative effects of changes in accounting policies
Balance of beginning of year after changes in account policies
Increase (decrease) during the period
Dividends of surplus
Net income
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year
Treasury stock
Balance at beginning of year
Increase (decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year

- 30 -(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

98

98

－
98

7
7
105

60,53566,7356,200
6,200
66,7355,700
5,700
72,435

8,802
80
8,883

8,278
－
8,278

(4,992)
12,018(499)(6,200)
(932)
(604)
8,278

(5,371)
9,700
(537)
(7)
(5,700)－(1,914)
6,363

71,63080
71,71177,805－77,805(4,992)
12,018(932)
6,094
77,805(5,371)
9,700
－
4,329
82,135(17,999)(1,686)(0)
16,313
16,312(1,686)

(3)
215
211
(1,475)

FY2014(From April 1, 2014
to March 31, 2015)
Total Shareholders' equity
Balance at beginning of year
Cumulative effects of changes in accounting policies
Balance of beginning of year after changes in account policies
Increase (decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Net increase (decrease) during the period
Balance at end of year
Valuation and translation differences
Valuation differences of available-for-sale secrities
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Netincrease (decrease) during the period
Balance at end of year
Total valuation and translation differences
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Netincrease (decrease) during the period
Balance at end of year
Total net assets
Balance at beginning of year
Cumulative effects of changes in accounting policies
Balance of beginning of year after changes in account policies
Increase (decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year

- 31 -(Millions of yen)
FY2015(From April 1, 2015
to March 31, 2016)

138,71780
138,798

161,152－
161,152(4,992)
12,018(0)
15,32822,353
161,152(5,371)
9,700
(3)
215
4,541
165,693(8,776)(3,608)

5,168

(986)

5,168
(3,608)(986)(4,595)(8,776)(3,608)

5,168

(986)

5,168
(3,608)(986)(4,595)

129,94180
130,021

157,543－
157,543(4,992)
12,018(0)
15,328(5,371)
9,700
(3)
215

5,168

(986)

27,522
157,543

3,554
161,098