Summary Report of Consolidated Financial Results
For the Three Months Period ended June 30, 2008 (Year ending March 31, 2009)
August 11, 2008
Company name: NIPRO CORPORATION
Code No.8086URL:
http://www.nipro.co.jp/

TSE/OSE–1st section

Representative:
Minoru Sano, President and Representative Director
Contact:
Akihiko Yamabe, Director, General Manager of Accounting & Corporate Planning Division
Scheduled date of quarterly annual report filing: August 14, 2008
TEL: (06) 6372-2331(Note: Amounts are truncated to one million yen)
1. Financial results for the three months ended June 30, 2008.(From April 1, 2008 to June 30, 2008)(1) Consolidated Results of Operations(Note: The % displays show increase/decrease ratio against the same period of the previous year.)
Net(Quarter)
Net Sales
Operating Income
Recurring Income
IncomeMillions of yen %Millions of yen %Millions of yen %Millions of yen %
2,734
5,163
3 months ended June 30,2008
3,469
42,5252,964 82.5
4,684 38.3
3 months ended June 30,2007
3,757
(5.2)
41,376 (21.1)
Earnings
per Share
3 months ended June 30,2008
3 months ended June 30,2007

Diluted Earnings
per Share

43.10 Yen
46.69

- Yen
-

Total Assets

Net Assets

Millions of yen
341,186
349,302

Millions of yen
119,352
119,544(2) Consolidated Financial Position

3 months ended June 30,2008
Year ended March 31,2008(Notes) Shareholders’ equity

Net Assets
per Share

Equity Ratio
%

Yen

34.6
33.8

1,858.07
1,861.79

3 months ended June 30, 2008 117,912 million yen, Year ended March 31, 2008 118,155 million yen

2. Dividends

Year ended March 31,2008
Year ending March 31,2009
Year ending March 31,2009(Projection)

End of
1st Quarter
yen
-----

End of2nd Quarter
yen
28.00
----21.00

End of3rd Quarteryen---------

Year end

Annual totalof dividends
yen
37.50
----49.00

yen
9.50----28.00

3. Projected Consolidated Financial Results for the Year ending March 31, 2009 (From April 1, 2008 to March 31, 2009)(Note: % shows increase/decrease ratio against March 31, 2008)

Operating
IncomeNet Sales

6 months ending Sep.30,2008
Year ending March 31,2009

Recurring
IncomeEarnings
Per Share

Net Income

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen88,400184,000

6.9

5,800
12,800 (6.4)

4,900
11,200

15.8

2,700
6,100

37.0

42.54
96.10

4. Others(1) Change in significant subsidiaries during the period ended June 30, 2008(Resulting in a change in scope of consolidation): None
(2) Adoption of accounting treatments simplified and unique for preparation of quarterly consolidated financial statements: Yes(3) Change in policies and procedures for accounting treatment of preparation of quarterly consolidated financial reports (to be
stipulated in significant matters for preparation of quarterly consolidated financial reports: Yes[1] Change for revision of accounting standards: Yes[2] Change for other than [1]: Yes(Note) Further detail information can be found in page 4. [Qualitative information, financial reports and others] 5. Others(4) Issued shares (Common stock)
3 months ended June 30,2008
Year ended March 31, 2008[1] Number of issued shares at end of the period
63,878,505 shares
63,878,505 shares[2] Number of treasury stock at end of the period
419,200 shares
415,037 shares[3] Number of average shares during the period
63,462,347 shares
63,483,532 shares*Disclaimer for appropriate use of forecasted financial results, and other special notes
1. The projection figures shown above are based on information that was available at the time of preparation and, therefore, actual
performance and other factors may differ from these projections due to changes in circumstances and other developments. Moreinformation concerning these forecasts can be found on page 4. [Qualitative information, financial reports and others] 4. Qualitative
information on the projected consolidated financial results, in the attachments.
2. We have adopted “Accounting standards for quarterly financial reporting”(Accounting Standards Board of Japan(ASBJ), statement
No.12, issued on March 14, 2007) and “Implementation guidance of accounting standards for quarterly financial reporting”(ASBJ
guidance No.14, issued on March 14, 2007) ” from this consolidated accounting period as well as prepared the quarterly
consolidated financial reports in conformity with “Quarterly consolidated financial reporting regulation(Cabinet decree No.64 of year2007).

-1-

[Qualitative information, financial reports and others]
1. Qualitative information on the consolidated results of operation
In the current first quarter period, the situation of world economy has decelerated by confusion of financial market
in the United States and the high raw material price such as oil price has spreaded fear for inflation world widely.
Meanwhile, continuously affected by foreign exchange fluctuation of strong yen rate and weak U.S. dollars rate inaddition to the high oil and raw material price, Japanese economy also has generally remained further tendency toretreat by slowing down growth of investment in plant and equipment and individual consumption. Under suchsituation, we have promoted to develop innovative medical equipment in the field of artificial organs andregenerative medicines as well as reinforced injection drug and oral drug business to expand business contents
and to enhance revenues.
The overviews of the results by segment are as follows.
<Medical equipment division>
In the domestic business, its environment remained severe, in the circumstance of price appreciation such as raw
material and freight cost by appreciation of oil price, due to further downward pressures on medical costs in medical
institutions and lowering of market price, revised prescription prices effective as of April this year.
Under such circumstances, we have promoted active market development, enhancing selling efficiency, enlarging
line up of main products to show a good growth in product categories as dialysis-related products, diabetes-related
products and injection-and-infusion-related products.
In the international business, although we made effort to expand the sales by enlarging selling entities, the sales
remained stagnant, affected by fluctuation of foreign exchange for strong yen rate and weak U.S. dollars rate.
Among the product groups, the sales of artificial organs equipment such as dialyzers decreased andinjection-and-infusion related products such as butterfly needles increased.
As a result, net sales of this division decreased 0.8% from the same period of the previous year to 26,240 million
yen.
<Pharmaceutical division>
In the Pharmaceutical division, the environment of market also remained very severe, due to the governmental
measures to suppress medicine costs by the reform of medical administration against augmentation of domestic
medical cost, and furthermore, revision of the prescriptions prices and increase of facilities to introduce DPC(Diagnosis Procedure Combination, a prescription system to reimburse comprehensively) system and the intensive
price competitions against the product of competitors.
Under such severe circumstances, we actively expanded sales of remarkable products such as powdered dialysate
solutions, kit product of substitution fluid for hemofiltration and hemodiafiltration and pre-filled syringe kits, antibiotic
agents by “liquid-and-powder” double-bag kits and injectables in plastic-ampoules.
As a result, net sales of this division increased 12.5% from the same period of the previous year to 13,564 million
yen.
<Glass & Materials division>
In the filed of glass for pharmaceutical purposes, sales of glass for tube bottle for pharmaceuticals, make-up andbaby milk, all resulted in good order. Sales of glass tubes for ampoule also marked firm sales results relatively,
including exportation.
In the field of other glass & materials products, good sales in export of glass for vacuum bottle mainly to middle
east area covered the drop of domestic demand, however, sales of glass for lighting purpose, especially the relatedmaterials for backlight, largely decreased for application to the requirements for cost reduction by makers of Liquid
Cristal Display panel. The materials other than glass showed little growth generally due to the underperforming
consumers trend, in spite of strenuous efforts in health-food-related products of Ashitaba(Angelica keiskei), and soon.
As a result, net sales of this division decreased 3.5% from he same period of the previous year to 2,568 million yen.

-2-

<Other division>
Net sales of this division, consisting mainly of sales of machine for manufacture of medical equipment and realestate rentals, decreased 29.0% from the same period of the previous year to 152 million yen.
As a result, net sales for the three months ended June 30, 2008 was 42,525 million yen, increased by 2.8% fromthe same period of the previous year.
As for profits, Operating income decreased 7.7% from the same period of the previous year to 3,469 million yen
due to the increase of selling, general and administrative expenses, while recurring income increased 10.2% fromthe same period of the previous year to 5,163 million yen due to the accrual of non-operating income such as
foreign exchange gain. However, net quarter income decreased 7.7% from the same period of the previous year to
2,734 million yen mainly due to the loss on measurement of inventories.
2. Qualitative information on the consolidated financial position
Total assets at end of June 30, 2008 decreased 8,115 million yen to 341,186 million yen from end of the previous
period. Current assets decreased 11,792 million yen and fixed assets increased 3,676 million yen from end of theprevious period. Current assets decreased mainly due to the decrease of 7,161 million yen in the cash on hand inbanks and fixed assets increased mainly due to the increase of 7,037 million yen in investment securities.
Total liabilities decreased 7,924 million yen to 221,834 million yen from end of the previous period. Current
liabilities decreased 8,282 million yen and fixed liabilities increased 358 million yen from end the previous period.
Current liabilities decreased mainly due to decrease of 10,000 million yen in current portion of bonds.
Net assets amounted to 119,352 million yen, where shareholders’ equity increased 2,208 million yen andvaluation and translation difference decreased 2,451 million yen, from end of the previous period.
3. Qualitative information on the state of the consolidated cash flow
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 5,461 million yen. The main accounts of inflow were net
income before adjustment of taxes, 4,862 million yen, depreciation and amortization, 4,019 million yen and themain accounts of outflow were increase in trade receivables, 3,591 million yen, increase in inventories, 1,326
million yen.
(Cash flow from investing activities)
Net cash used in investing activity amounted to 4,085 million yen. The main account of outflow was payments foracquisition of fixed assets(Cash flow from financing activities)
Net cash used in financing activities amounted to 8,718 million yen. The main accounts of outflow wereredemption of bonds, 10,000 million yen and repayment of long-term borrowings, 3,963 million yen.

-3-

4. Qualitative information on the projected consolidated financial results
The world economy in future are still becoming more unpredictable as the business condition in the UnitedStated has retreated and European economy is not expected to be improved from the situation of economical
deceleration. This made concern of decrease in corporate revenues by high oil and raw material prices also inJapanese economy, and, furthermore, reinforcement of the governmental measures to suppress medicine costs
and escalation of further competitions among the global enterprises are to be prospective. Under suchcircumstance, we, however, continuously endeavor to expand our business more to strengthen the foundation,and therefore the figures of the projected consolidated financial results for the year ending March 31, 2009 (FromApril 1, 2008 to March 31, 2009) announced on May 19, 2008, have been unchanged.
5. Others(1) Change in significant subsidiaries during three months ended June 30, 2008(Resulting in a change in scope of
consolidation)
N/A(2) Adoption of accounting treatments simplified and unique for preparation of quarterly consolidated financial
reports[1] Simplified accounting treatments
1) Calculation of estimated impairment for general receivables.
As it is accepted that there is no significant change between the actual rate or index of bad debts accrual
calculated at end of the current quarterly consolidated accounting period and end of the previous
consolidated accounting year, the later rate or index was utilized for estimation of impairment of general
receivables.
2) Measurement for inventory
As for the inventory amount at end of the current quarterly consolidated accounting period, actual stock
counting procedure was omitted and the inventory amount was calculated by the reasonable method
based on the actual stock balance at end of the previous consolidated accounting year.
[2] Unique accounting treatment for preparation of quarterly consolidated financial reports
N/A(3) Change in policies, procedures and presentation for accounting treatment of preparation of quarterly
consolidated financial reports[1] Adaptation of accounting standards for quarterly financial reporting
We have adopted the “Accounting standards for quarterly financial reporting” (Accounting Standards Board ofJapan (hereafter called ASBJ), Statement No.12, issued on March 14, 2007) and the “Implementation guidanceof accounting standards for quarterly financial reporting” (ASBJ guidance No.14, issued on March 14, 2007)”from this consolidated accounting period. We have prepared the quarterly consolidated financial reports inconformity with the “Quarterly consolidated financial reporting regulation (Cabinet decree No.64 of year 2007).
[2] Application of accounting standards for measurement of inventories
We have adopted the “Accounting standards for measurement of inventories”(ASBJ, Statement No.9, issued onstJuly 5, 2006) from the current 1 quarter consolidated accounting period and the basis of measurement has beenchanged from cost method to writing down method below cost to the net selling value for decreased profitability. As
a result, gross profit, operating profit and recurring profit, decreased 20 million yen and net income before
adjustment of taxes decreased 250 million yen, comparing with the computation by the previous method.
As for the affection to the segment information, please see the notes in the segment information.

-4-[3] Application of practical solution on unification of accounting policies applied to foreign subsidiaries forconsolidated financial statements
We have adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries forstConsolidated Financial Statements” (ASBJ Practical Issues Task Force No. 18) from the current 1 quarter
consolidation accounting period to make necessary adjustments on consolidation closing process. As a result, theaffections against gross profit and operating profit were not material, however, recurring income decreased 43
million yen and net income before adjustment of taxes decreased 96 million yen.
As for the affection to the segment information, please see the notes in the segment information.
[4] Application of accounting standard for lease transaction
We have adopted, in advance, the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13,
issued on June 7, 1993, ultimate revision on March 30, 2007) and the “Guidance on Accounting Standard forLease Transactions” (ASBJ Guidance No.16, issued on January 18, 1994, ultimate revision on March 30, 2007)
stfrom the current 1 quarter consolidation accounting period to change the treatment of finance lease transactionthat does not transfer ownership from the one similar to an ordinary rental transaction to the one similar to ordinary
sale and purchase transaction, to be an assets under finance lease.
As for the method of depreciation of the assets under finance lease, its useful lives are equals to the lease term
and the residual values are equal to zero.
However, we still have adopted the similar manner to an ordinary rental transaction for the finance leasesttransactions that do not transfer ownership and the starting dates of the lease transactions were before 1 April
2008. No affection against profit and loss will be given by the change.
(Additional information)
Change in useful life of tangible fixed assets
Nipro Corporation and its domestic subsidiary companies have changed the useful lives of machinery from thestcurrent 1 quarter consolidated accounting period according to the revision of the domestic corporate income tax
law. As a result, gross profit decreased 346 million yen, operating profit decreased 344 million yen, recurringincome and net income before adjustment of taxes decreased 337 million yen, comparing with the computation by
the previous useful lives.
As for the affection to the segment information, please see the notes in the segment information.

-5-5. Summary of Quarterly Consolidated Financial Reports(1) Quarterly Consolidated Balance Sheets(Note: Amounts are truncated to one million yen)

As of

As of

June 30, 2008

March 31, 2008

(ASSETS)

Current Assets

150,954

162,746

Cash on hand and in banks

42,30749,469Trade notes and accounts receivable

52,15653,507

Merchandise and finished products

33,994

34,120Work in process

5,635

4,810

Raw material and supplies

8,396

9,146

Deferred tax assets

2,783

2,902

Other current assets

6,167

9,264

Allowance for doubtful accounts

(487)

(473)

Fixed Assets

190,231

186,555

Tangible fixed assets

116,035

118,811

Buildings and structures

44,25845,414

Machinery and vehicles

35,52237,780Land

19,32919,412

Construction in progress

12,221

11,220

Others

4,702

4,983

Intangible fixed assets

2,910

3,163

Goodwill

1,296

1,425

Others

1,614

1,737

Investments and other assets

71,28564,580Investment securities

66,96359,925Long-term loans receivable

217

223

Deferred tax assets

99

159

Lease deposits

4,403

4,466

Other assets

2,494

2,779

Allowance for doubtful accounts(2,893)(2,972)

341,186

349,302

Total Assets- 6 -(Note: Amounts are truncated to one million yen)

As of

As of

June 30, 2008

March 31, 2008

(LIABILITIES)Current liabilities
Trade notes and accounts payable
Short-term borrowings
Current portion of bonds
Other payables
Accrued income taxes
Allowance for bonuses payable
Allowance for bonuses payable fordirectors and corporate auditor
Allowance for loss on clearance ofbusiness
Notes payable for plant and equipment
OthersFixed liabilities
Bonds
Convertible bond type bonds withstock acquisition rights
Long-term borrowings
Deferred tax liabilities
Accrued pension and severance costAccrued severance indemnity fordirectors and corporate auditors
Allowance for loss on lawsuit
Other fixed liabilities

100,552
29,49747,458
5,150
4,563
2,868
892
1

108,835
30,00843,23415,150
5,388
2,226
1,528
75

1,954

1,954

3,216
4,949
121,281
36,30014,0005,225
4,043
120,923
36,30014,00053,902
12,6802,220
599

56,405
9,833
2,128
700

170
1,408

170
1,385

221,834

229,758

99,52828,66329,975
41,692(802)
18,383

97,32028,66329,97539,476(794)
20,83523,091

18,947(4,708)

1,887

1,440

1,388

Total Net Assets

119,352

119,544

Total Liabilities and Net Assets

341,186

349,302

Total Liabilities(NET ASSETS)
Shareholders’ Equity
CapitalCapital surplus
Earned surplus
Treasury stock
Valuation and translationdifferences
Valuation differences ofother securities
Foreign currencytranslation adjustments
Minority interests- 7 -(2) Quarterly Consolidated Statements of Income(Note: Amounts are truncated to one million yen)
Current Period(From April 1, 2008
To June 30, 2008)

Account

Net sales

42,525

Cost of goods sold30,177Gross profit

12,347

Selling, general and administrative expenses

8,878

Operating income

3,469

Non-operating income

2,369Interest income

104

Dividend income

375

Exchange gain

1,682

Equity in profit of affiliate

66

Others140

Non-operating expenses

675Interest expenses

582

Depreciation

78
14

OthersRecurring income

5,163
292

Extraordinary gains

246

Gain on sale of fixed assets

45

Others592

Extraordinary losses
Loss on sale and disposal of fixed assets

40

Impairment loss on fixed assets

129

Loss on measurement of inventories

229

Others193

Net(Quarter) income before adjustment of taxes

4,862

Corporate, inhabitants and enterprise taxes

1,858

Adjustment for deferred taxes

193

Minority shareholders’ share75

in net income of consolidated subsidiaries
Net(Quarter) income

2,734

- 8 -

(3) Quarterly Consolidated Statements of Cash Flow
(Note: Amounts are truncated to one million yen)
Current Period(From April 1, 2008
To June 30, 2008)
Cash flows from operating activities
Net income before adjustment of taxes
Depreciation and amortization
Impairment loss on fixed assets
Amortization of goodwill
Equity in loss(gains) of affiliate
Increase (decrease) in allowance for
doubtful accounts
Interest and dividend income
Interest expenses
Exchange loss (gain)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other losses(gains)
SubtotalInterest and dividends received
Interest paid
Other revenues
Other expenditures
Income taxes paid

4,862
4,019
129
85
(66)
14
(480)
582
286
(3,591)(1,326)
2,360
196
(221)
(243)
6,607
463
(486)
85
(28)
(1,180)Cash flows from operating activities

5,461

Cash flows from investing activities
Deposits in time deposits
Proceeds from matured time deposits
Payments for purchases of investment securities
Payments for acquisition of fixed assets
Proceeds from sales of fixed assets
Proceeds from governmental subsidies
Increase(decrease) in short-term lending
Collections of loans receivable
Revenues from other investments
Cash flows from investing activities

(178)
178
(0)
(6,250)
252
1,838
48
24
1
(4,085)

Cash flows from investing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Payments for redemption of bonds
Proceeds from issuance of shares for minority interests
Proceeds from disposal of treasury stock
Payments for acquisitions of treasury stock
Repayments of finance lease obligations
Payments for dividends
Other payments
Cash flows from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the
beginning of the period
Increase in cash and cash equivalents due toinclusion of new subsidiary in consolidation
Balance of cash and cash equivalents at the end of the period

- 9 -

3,948
1,800
(3,963)(10,000)
9
1
(9)
(6)
(534)
(0)
(8,718)(562)(7,905)47,656809
40,560We have adopted the “Accounting standards for quarterly financial reporting” (Accounting Standards Board of Japan(hereafter called ASBJ), Statement No.12, issued on March 14, 2007) and the “Implementation guidance of accounting
standards for quarterly financial reporting” (ASBJ guidance No.14, issued on March 14, 2007)” from this consolidated
accounting period. We have prepared the quarterly consolidated financial reports in conformity with the “Quarterly
consolidated financial reporting regulation (Cabinet decree No.64 of year 2007).

(4) Notes related to going concern
N/A(5) Segment information[1] Segment information by business categorystCurrent 1

quarter period (From April 1, 2008 to June 30, 2008)(Note: Amounts are truncated to one million yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials

Other

Total

26,24013,5642,568

152

42,525-42,525

-

0

796

18

815

(815)

-

Total

26,24013,5643,364

171

43,340(815)

42,525

Operating income(loss)

3,561

1,213

455

30

5,260

(1,791)

3,469

Net sales(1)Sales to third parties(2)Inter-segment sales
and transfers(Notes)Eliminations/Corporate

Consolidated

1. Classification of business categories and main products in each business category
Business categories are classified based on the proximity in terms of purposes and manners of usage ofthe products in the market.
Main products belonging to each business categories are as follows:Business
category
MedicalEquipment

Main products and commodities
Dialyzers, blood tubing sets, injection needles, syringes, and infusion sets, etc

Glass &
Materials

Half-type and full-type kits, double-bag kits, pre-filled syringes, dialysate solution, andcirculatory drugs, etc.
Glass for pharmaceutical containers, glass for thermos bottles, glass for lighting
purposes, stoppers for plastic containers and rubber stoppers, etc.

Other

Machinery for manufacture of medical equipment and real estate rental income, etc.

Pharmaceutical

2. As described in “Change in policies, procedures and presentation for accounting treatment of
preparation of quarterly consolidated financial reports” [2], we have adopted the “Accounting standards forstmeasurement of inventories” from the current 1 quarter consolidation accounting period and the basis ofmeasurement has been changed from cost method to writing down method below cost to the net selling
value for decreased profitability. As a result, operating profit in “Medical Equipment” and “Pharmaceutical”
decreased 0 million yen and 20 million yen respectively, comparing with the computation by the previous
method.
3. As described in “Change in policies, procedures and presentation for accounting treatment of
preparation of quarterly consolidated financial reports” [3], we have adopted the “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements”
stfrom the current 1 quarter consolidation accounting period to make necessary adjustments on
consolidation. However, the affections against gross profit and operating profit were not material.

- 10 -

4. As described in “Change in policies, procedures and presentation for accounting treatment of
preparation of quarterly consolidated financial reports” (Additional information), Nipro Corporation and its
stdomestic subsidiary companies have changed the useful lives of machinery from the current 1 quarter
consolidated accounting period according to the revision of corporate income tax law. As a result, operating
profit in “Medical Equipment”, “Glass and Material” and “Others” decreased 430 million yen, 9 million yen,and 0 million yen, respectively, while in “Pharmaceutical” increased 95 million yen, comparing with thecomputation by the previous useful lives.

[2] Segment information by geographical areast

Current 1

quarter period (From April 1, 2008 to June 30, 2008)
Japan

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

America

Europe(Note: Amounts are truncated to one million yen)
Asia

Total

Eliminations
Consolidated/Corporate

34,085

4,023

2,526

1,890

42,525-42,525

7,405

221

1

3,480

11,108(11,108)-

41,490

4,245

2,527

5,370

53,633(11,108)

42,525

Operating expenses

33,685

5,419

2,082

4,402

45,589(7,971)

37,618Operating income(loss)

5,344

(325)

(11)

329

5,336

(1,866)

3,469

Total

(Notes)
1.

2.

3.

4.
5.

As described in “Change in policies, procedures and presentation for accounting treatment of
preparation of quarterly consolidated financial reports” [2], we have adopted the “Accounting standards
stfor measurement of inventories” from the current 1 quarter consolidation accounting period and thebasis of measurement has been changed from cost method to writing down method below cost to the
net selling value for decreased profitability. As a result, operating profit in “Japan” decreased 20 million
yen, comparing with the computation by the previous method.
As described in “Change in policies, procedures and presentation for accounting treatment of
preparation of quarterly consolidated financial reports” [3], we have adopted the “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated FinancialstStatements” from the current 1 quarter consolidation accounting period to make necessary
adjustments on consolidation closing process. However, the affections against gross profit andoperating profit were not material.
As described in “Change in policies, procedures and presentation for accounting treatment of
preparation of quarterly consolidated financial reports” (Additional information), Nipro Corporation andst
its domestic subsidiary companies have changed the useful lives of machinery from the current 1
quarter consolidated accounting period according to the revision of corporate income tax law. As aresult, operating profit in “Japan”, and “Eliminations/corporate” decreased 344 million yen, and 0 million
yen, respectively, comparing with the computation by the previous useful lives.
Classification of countries or areas is based on geographical proximity.
The major countries included in each geographical area are as follows:
America…….. The United States of America and Brazil
Europe……… Belgium
Asia…………. China, Thailand and Singapore- 11 -

[3] Overseas Salesst

Current 1

quarter period (From April 1, 2008 to June 30, 2008)
America

1. Overseas sales(Note: Amounts are truncated to one million yen)

Europe

7,372

4,473

Asia

2,380

Percentage of overseas sales

14,22642,525

2. Consolidated net sales
3. to consolidated net sales (%)

Total

17.3%

10.5%

5.6%

33.4%

(Notes) 1. Overseas sales represent those of the Company and the consolidated subsidiaries to countries andareas outside of Japan
2. Classification of countries or areas is based on geographical proximity.
3. The major countries included in each geographical area are as follows:
America………The United States of America, Canada and Brazil
Europe………. Belgium, Denmark and Germany
Asia………….. China, India, Indonesia, Taiwan and Thailand(6) Notes to Statements of Shareholders’ Equity, if having significant variation.
N/A- 12 -

[Reference Information]
stQuarterly Consolidated Financial Reports for 1 quarter of previous consolidation accounting period(1) Quarterly Consolidated Statements of Income(Note: Amounts are truncated to one million yen)Previous Period(From April 1, 2007
To June 30, 2007)

Account

Net sales
Cost of goods sold

41,37629,470Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Exchange gain
OthersNon-operating expenses
Interest expenses
Depreciation
Equity in loss of affiliate
Others11,905
8,148
3,757
1,592
94
312
1,003
182
666
440
28
166
30

Recurring income
Extraordinary gains
Gain on sale of fixed assets
Governmental subsidies received
Reversal of allowance for bonus payables
Life insurance income
OthersExtraordinary losses
Loss on sale and disposal of fixed assets
Loss on disposal of inventories
Abnormal manufacturing cost
Advanced depreciation on fixed assets
OthersNet(Quarter) income before adjustment of taxes
Corporate, inhabitants and enterprise taxes
Adjustment for deferred taxes
Minority shareholders’ sharein net income of consolidated subsidiaries
Net(Quarter) income

4,684
223
4
1
18
191
7
122
34
12
27
1
47
4,785
1,425
372
23

- 13 -

2,964

(4) Quarterly Consolidated Statements of Cash Flow
(Note: Amounts are truncated to one million yen)Previous Period(From April 1, 2007
To June 30, 2007)
Cash flows from operating activities
Net income before adjustment of taxes
Depreciation and amortization
Amortization of goodwill
Equity in loss of affiliate
Increase (decrease) in allowance for
doubtful accounts
Interest and dividend income
Interest expenses
Exchange loss (gain)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other losses(gains)
SubtotalInterest and dividends received
Interest paid
Other revenues
Other expenditures
Income taxes paid
Cash flows from operating activities

Cash flows from investing activities
Deposits in time deposits
Proceeds from matured time deposits
Payments for purchases of securities
Payments for acquisition of shares with change
In scope of consolidated subsidiary
Payments for acquisition of fixed assets
Proceeds from sales of fixed assets
Increase(decrease) in short-term lending
Collections of loans receivable
Expenditures for other investments
Revenues from other investments
Cash flows from investing activities
Cash flows from investing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of shares
Proceeds from disposal of treasury stock
Payments for acquisitions of treasury stock
Repayments of finance lease obligations
Payments for dividends
Other payments
Cash flows from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the
beginning of the period
Balance of cash and cash equivalents at the end of the period- 14 -

4,785
3,174
49
166
9
(406)
440
(65)
(228)
(3,328)2,222
606(2,304)
(274)
4,844
400
(425)
600
(67)
(7,375)(2,023)

(551)
551
(10)
(2,479)(5,422)
34
(245)
13
(0)
21
(8,087)827
1,445(3,067)
3
1
(17)
(15)
(2,039)(14)(2,875)
241(12,744)
46,10933,365

(3) Segment information[1] Segment information by business categorystPrevious 1

quarter period (From April 1, 2007 to June 30, 2007)(Note: Amounts are truncated to one million yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials

Other

Total

26,44012,0602,660

215

41,376-

41,376

-

-

852

32

885

(885)

-

Total

26,44012,0603,513

247

42,261(885)

41,376

Operating income(loss)

3,889

1,079

471

22

5,461

(1,704)

3,757

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

Eliminations/Corporate

Consolidated[2] Segment information by geographical area]stPrevious 1

quarter period (From April 1, 2007 to June 30, 2007)
Japan

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

America

Europe(Note: Amounts are truncated to one million yen)
Asia

Eliminations
Consolidated/Corporate

Total

33,069

4,791

2,165

1,350

41,376-

41,376

6,689

328

2

3,287

10,308(10,308)-

Total

39,758

5,120

2,168

4,637

51,684(10,308)

41,376

Operating income(loss)

6,072

(299)

85

235

6,094

(2,337)

3,757[3] Overseas Sales]stPrevious 1 quarter period (From April 1, 2007 to June 30, 2007)
America

1. Overseas sales(Note: Amounts are truncated to one million yen)

Europe

8,625

4,856

Asia

2,050

Percentage of overseas sales

15,532
41,376

2. Consolidated net sales
3. to consolidated net sales (%)

Total

20.8%

- 15 -

11.7%

5.0%

37.5%