Summary Report of Consolidated Financial Results
For the Nine Months Period ended December 31, 2011
February10, 2012stCompany name: NIPRO CORPORATION
TSE/OSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Minoru Sano, President and Representative Director
Contact person: Akihiko Yamabe, Director and General Manager of Accounting Division
TEL: (06)6372-2331
Filling date of quarterly reporting: February 14, 2012
Payment date of cash dividends: Supplemental material on quarterly reporting: No
Presentation on quarterly results: No

1.

(Note: Amounts are truncated to one million yen)
Consolidated Results for the Nine Months ended December 31, 2011 (From April 1, 2011 to December 31, 2011)(1) Consolidated Results of Operations
Net Sales
Millions of yen%(Note: % of change from the same period a year ago)
Operating Income
Ordinary Income
Net Income
Millions of yen % Millions of yen % Millions of yen %9 months ended December 31, 2011

159,6449.9

13,509

(5.4)

9,680

(2.8)

2,331

(41.7)

9 months ended December 31, 2010

145,223

9.1

14,286

(3.3)

9,959

(20.3)

4,002(37.0)

Note: Comprehensive income
yen (-%)

9 months ended December 31, 2011: (20,577) million yen (-%)

9 months ended December 31, 2010: 2,646 million

9 months ended December 31, 2011

Earnings per share
Yen
18.38

Diluted Earnings per share
Yen
16.09

9 months ended December 31, 2010

31.56

28.47

(2) Consolidated Financial Position
Total Assets
Millions of yen
477,774
476,510Net Assets
Millions of yen
86,833109,037

9 months ended December 31, 2011
Year ended March 31, 2011
Note: Equity 9 months ended December 31, 2011: 82,765 million yen

2.

Equity Ratio
%
17.3
22.4

Year ended March 31, 2011: 106,509 million yen

Dividends

Year ended March 31, 2011
Year ending March 31, 2012
Year ending March 31, 2012
(Forecast)

Annual Dividends per Year
Year-end Dividends
Second-quarter
Third-quarter
Yen
Yen
Yen
18.50
31.50
12.00
-

First-quarter
Yen
-

-

Annual Dividends

Yen
50.00

13.50

25.50

Note: Revisions to the forecast of cash dividends in the current quarter: No
3.

Forecast of Consolidated Financial Results for the Year ending March 31, 2012 (From April 1, 2011 to March 31, 2012)(Note: The % displays in the line of year ending March 31, 2012 show increase/decrease ratio against the year ended March 31, 2011)

Operating
IncomeNet Sales
Millions of yen%

Millions of yen

Ordinary Income%

Millions of yen%

214,000 9.2
16,000(7.1) 12,550(6.1)
Note: Revisions to the forecast of consolidated financial results in the current quarter: No
Year ending March 31, 2012

Net Income
Millions of yen

4,050

%

64.9

Earnings
per Share
Yen
31.93

4. Others(1) Change in Significant Subsidiaries during the Current Period(Change in specified subsidiaries caused a change in the scope of consolidation): Yes
Additional: 2 (Corporate name: Nipro India Corporation Pvt Ltd.)
Removal: 0(Corporate name: Nipro Medical (Hefei) Co., Ltd.)(2) Adoption of Accounting Treatments Simplified or Unique for Preparation: No(3) 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: The detail can be found in P.4 “Summary information (Others)” in the attachment.)(4) Issued Shares (Common stock)[1] Number of issued shares at end of the period (including treasury stock)
9 months ended December 31, 2011
: 127,757,010sharesYear ended March 31, 2011
: 127,757,010 shares[2] Number of treasury stock at end of the period
9 months ended December 31, 2011
: 913,658 sharesYear ended March 31, 2011
: 912,840 shares[3] Average number of shares during the period
9 months ended December 31, 2011
: 126,843,635 shares
9 months ended December 31, 2010
: 126,845,575 shares(Note: The company has split one share of common stock into two shares on October 1, 2011. In this stock split, thenumber of issued shares is calculated on the assumption that the two-for-one stock split of common stock is conductedat the beginning of fiscal year 2010.)*Information regarding the quarterly review procedure
This quarterly summary report is exempt from quarterly review procedure based on the Financial Instruments
and Exchanges Act. It is under the review procedure process at the time of disclosure of this report*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes
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 tochanges in circumstances and other developments. More information concerning these forecasts can be found in
P.4 “1. Qualitative information for the nine months period ended December 31, 2011, (3) Qualitative information
concerning forecast of consolidated financial results” in the attachment.
The company has split one share of common stock into two shares on October 1, 2011. In this stock split,
earnings per share and diluted earnings per share are calculated on the assumption that the two-for-one stock
split of common stock is conducted at the beginning of fiscal year 2010.

Table of Contents

1.

2.

3.

Qualitative Information for the Nine-Month Period ended December 31, 20112(1) Qualitative Information Concerning Consolidated Financial Results2(2) Qualitative Information on the Consolidated Financial Position

3(3) Qualitative Information Concerning Forecast of Consolidated Financial Results3

Summary (Other) Information

3(1) Changes in Significant Consolidated Subsidiaries

3(2) Accounting Treatments Simplified or Unique for Preparation

3(3) Changes in Accounting Policies and Accounting Estimate and Restatement

3(4) Additional Information

3

Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income andQuarterly Consolidated Statements of Comprehensive Income

7

Quarterly Consolidated Statements of Income

7

Quarterly Consolidated Statements of Comprehensive Income

7(3) Notes Related to Going Concern

8(4) Segment Information

8(5) Notes to Statements of Shareholders‟ Equity, If Having Significant Variation

9

-1-

1.

Qualitative Information for the Nine-Month Period ended December 31, 2011

(1) Qualitative Information Concerning Consolidated Financial Results
During the nine-month period ended December 31, 2011, delayed economic recovery in America and turmoil of thefinancial market in Europe made the global slowdown more sever.
As for the domestic economy, on the other hand, the limited supply for the Great East Japan Earthquake was resolved
and the economic activity was promoted to show the sign of partial recovery. However, sense of uncertainty washeightened because the strong appreciation of the yen still remained and the negative effect from the accident of
nuclear power generation became obvious.
Under such situations, the Nipro Group recovered the proper functions in almost all direct offices and plants which got
damaged by the great earthquake. We also have worked actively to set up manufacturing and sales bases in foreigncountries so as to be one of the top companies in our core businesses.
As a result, the consolidated net sales in the nine-month period ended December 31, 2011 increased 9.9% from thesame period of the previous year to 159,644 million yen.
As for the profit, consolidated operating income decreased 5.4% from the same period of the previous year to 13,509
million yen due to the increase in selling, general and administrative expenses, and consolidated ordinary income
decreased 2.8% from the same period of the previous year to 9,680 million yen. The consolidated net income
decreased 41.7% from the same period of the previous year to 2,331 million yen because extraordinary loss increasedby the generation of loss due to disaster.
The overviews of the results by segment are as follows.
[1] Medical Business
Domestic market and business conditions were seriously sever because of the lagged recovery from the Great East
Japan Earthquake and the continuous economic downturn. Under such circumstances, sales grew greatly in
auto-adjusting dialysis machine, dialysis-related pharmaceutical products (such as substitution fluid forhemo(dia)filtration and blood coagulation inhibitor) and dialysis-related products (such as hemodiafiltration dialyzer).
Enteral-alimentation-related products (such as semisolid food and alimentation catheter), testing-related products (suchas glucose analysis device) and vascular-related products (such as PTA guide wire and coronary artery stent) showed
fine sales as well. However, the sales in transfusion- and injection-related products and dialyzer which dropped
temporarily because of the impact of the great earthquake, maintained low level even though it has headed forrecovering.
Overseas sales suffered great effect from the appreciation of yen against the dollar and euro, but we reduced theexchange risk by direct transaction between overseas plants and overseas sales subsidiaries and have kept performing
the community-based sales. Sales in blood glucose meter showed significant growth, and also sales in dialyzer and its
related products grew steadily thanks to active sales promotion to dialysis market. Moreover, glass products for medical
purpose have increased its sales figure with high evaluation for their quality. Plants in India, Hefei (China), Indonesia
and Bangladesh are under construction as planned. India plant will start to operate from next July and has alreadystarted to sales operation.
As a result, net sales of this business increased 7.9% from the same period of the previous year to 105,933 million
yen.
[2] Pharmaceutical BusinessThis business consist of two main divisions; one is the generic drugs division to provide low cost and high quality
medical drugs, and the other is contracted manufacturing division to offer high value-added products for customer
needs.
On the sales of generic drug, under government policy for the dissemination of generic products „generic drug share inquantity shall be expanded more than 30% until year 2012,‟ the market is expected to be larger with some policies forencouraging the use of generic products. Major pharmaceutical manufacturer make a full-scale entry into the market
and foreign generic manufacturers strengthen marketing strategies, which makes the competitive environment
surrounding the domestic market more sever. Under such circumstance, we have proactively enforced sales promotion
to dispensing pharmacy and deepened the cooperation with wholesaler of drug so as to increase the sales of oral drug.
In addition, the sales of injectable drug, our main product, exceeded the sales in the same period of the previous year
as a result of our detailed information service mainly to the hospitals subjected to the DPC system (Diagnostic
Procedure Combination; comprehension payment system of medical cost for acute hospitalization).
On the sales of contracted manufacturing business, we worked hard for realizing various fine services such as
contracted development and support for value adding other than ordinary contracted manufacturing. During this period,
the effect of the Great East Japan Earthquake dropped the operation capacity in some plants, but a number of new
products have launched so this division showed greater sales than the sales in the same period of the previous year.
As a result, net sales of this business increased 8.5% from the same period of the previous year to 31,210 million yen.
[3] Material Business
The sales of material glass tube for ampoule, a kind of pharmaceutical glass tube, decreased from the same period of
the previous year due to the stagnation of domestic demand. Concerning material glass tube for tube bottles, on theother hand, the domestic demand increased and overseas sales was enforced to develop the sales compared with thesame period of the previous year. Furthermore, in addition to India and China, the formulation of pharmaceutical glassbusiness in Russia is going on to promote overseas sales activities. The export of glass for thermos bottles increased
steadily, and in the domestic market, power saving campaign due to the earthquake disaster created the demand ofglass thermos bottles, which raise the net sales of this products compared with the same period of the previous year.
As for the sales of glass for lighting purpose, we recovered the usual operation capacity of automotive bulb from theeffect of the great earthquake. However, the sales of glass for LCD backlight decreased its demand under the influenceof penetration of LED products, so overall, the sales of glass products for lighting purpose and material glass tube for-2-bulb decreased from the same period of the previous year.
In the field of pharmaceutical container, the sales of rubber stopper for pharmaceutical use, bags for antimicrobial
agent and container for kit form increased steadily based on our processing technique for plastics, metal and rubber.
However, the sales of parts of pre-filled syringe decreased slightly.
As for the medical preparation and administration related device, the sales had showed good increase, and we areadvancing commercialization of products by both of self- development and joint development with pharmaceuticalcompanies so as to meet the diverse need. Furthermore, we continue to promote contract manufacturing anddevelopment cooperating with domestic and foreign pharmaceutical companies in general life cycle management ofpharmaceuticals, which includes the development of pharmaceutical combination products, systematization for
self-injection at home and modification of dosage form to such as orally-disintegrating tablet which can be taken withoutwater.
As a result, net sales of this business increased 24.0% from the same period of the previous year to 22,300 million
yen.
[4] Other BusinessIn the other business, the sale from real estate rental income is 200 million yen.

(2) Qualitative Information on the Consolidated Financial Position
Analysis Concerning the Conditions of Assets, Liabilities and Net Assets
Total assets increased 1,264 million yen from the end of the previous period to 477,774 million yen. Current assets
increased 16,277 million yen mainly due to the increase of 9,988 million yen in notes and accounts receivable-trade,and noncurrent assets decreased 15,013 million yen mainly due to the decrease of 32,035 million yen in investment
securities and the decrease of 3,536 million yen in guarantee deposits.
Total liabilities increased 23,468 million yen from the end of the previous period to 390,941 million yen. Current
liabilities increased 9,670 million yen mainly due to the increase of 11,277 million yen in short-term loans payable, andnoncurrent liabilities increased 13,798 million yen mainly due to the increase of 19,029 million yen in long-term loans
payable.
Total net assets decreased 22,203 million yen from the end of the previous period to 86,833 million yen. Shareholders‟equity decreased 496 million yen and accumulated other comprehensive income decreased 23,247 million yen.

(3) Qualitative Information Concerning Forecast of Consolidated Financial Results
In the world economy in the future, we are concerned about continuous low level of American economy and the risk of
economic downturn by debt crisis in Europe. As for the domestic economy, there are a lot of challenges such as theenergy limitation caused by the problem of nuclear power station and historical hover of appreciating yen, and they are
expected to bring more sever business condition.
In such situation, we will aim to improve expansion and efficiency of production and sales continuously.
At this moment, there is no revise to the consolidated financial results for the fiscal year 2011 which was published
November 10, 2011.

2.

Summary (Other) Information(1) Changes in Significant Consolidated Subsidiaries
Nipro India Corporation Pvt Ltd. and Nipro Medical (Hefei) Co. Ltd. are included in the scope of consolidation from thefirst-quarter consolidated accounting period because their materiality increased in our group.
(2) Accounting Treatments Simplified or Unique for Preparation
N/A(3) Change in Accounting Policies and Accounting Estimate and Restatement(Application of Accounting Standard for earnings per share)
From the first quarter of fiscal year 2011, the company has applies Accounting Standard for Earnings Per Share(ASBJ Statement No.2, issued on June 30, 2010), Guidance on Accounting Standard for Earnings Per Share (ASBJ
No.4, issued on June 30, 2010) and Practical Solution on Accounting for Earning Per Share (ASBJ PITF No.9 issued onJune 30, 2010).
In addition, the company has split one share of common stock into two shares on October 1, 2011 based on the
resolution at the board of directors‟ meeting held on August 27, 2011. In accordance with this application, earnings per
share and diluted earnings per share are calculated on the assumption that the two-for-one stock split of common stock
is conducted at the beginning of fiscal year 2010.
If these accounting standards had not been applied, earnings per share and diluted earnings per share of theprevious third quarter were as follows:
Earnings per share: 63.12 yen
Diluted earnings per share: 56.93 yen(4) Additional Information(Application of Accounting Standard for Accounting Changes and Error Corrections)
Effective after the beginning of the first quarter of fiscal year 2011, the Company has applied the Accounting Standard
for Accounting Changes and Error Corrections (ASBJ Statement No.24, issued on December 4, 2009) and Guidance-3-

on Accounting Standard for Accounting Changes and Error Corrections (ASBJ Statement No.24, issued on December
4, 2009).
(Effects of Revised Corporate Tax Rate)
Following the promulgation of December 2, 2011 of “Act for Partial Revision of the Income Tax Act, etc. for the
Purpose of Creating Taxation System Responding to Changes in Economic and Social Structures” (Act No. 114 of
2011) and “Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for
Reconstruction following the Great East Japan Earthquake” (Act No. 117 of 2011), effective from the fiscal year
beginning on and after April 1 2012, the corporate tax rate will be changed.
In accordance with this reform, deferred tax assets and deferred tax liabilities are calculated with the effective
statutory tax rates based on the revised rate for consolidated fiscal year during which temporary differences are
expected to be eliminated. As a result, deferred tax assets decreased 614 million yen and deferred tax liabilities
increased 220 million yen.

-4-

3. Consolidated Financial Statements(1) [ Quarterly Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2011
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
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-5-

As of
December 31, 2011

81,115
61,23742,697
6,783
11,461
4,204
9,935
(414)
217,02179,624
71,22647,185
8,379
12,824
3,535
11,038(516)
233,298

111,353(61,064)
50,289135,449(92,361)
43,087
20,115
1,519
(437)
1,082
8,989
27,150(22,209)
4,941
128,505

113,962(62,233)
51,728142,309(102,192)
40,117
20,402
1,658
(658)
999
20,51427,781(22,906)
4,874
138,637

7,833
291
5,442
13,56814,387320
6,070
20,778105,564
2,489
3,905
8,439
(2,984)
117,414
259,488476,51073,528
6,286
369
7,835
(2,959)85,060244,475
477,774(Millions of yen)
As ofMarch 31, 2011
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
Provision for loss on business liquidation
Provision for loss on disaster
Notes payable-facilities
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds
with subscription right s to shares
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
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
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

-6-

As of
December 31, 2011

33,581
96,65910,000
5,000
375
5,771
208
3,165
2,112
26
1,954
4,040
5,937
7,568
176,401

35,391
107,936
10,000
5,000
417
4,843
－
2,127
1,619
131
1,954
1,469
6,218
8,961
186,071

43,00044,00015,00015,000120,549
1,086
7,465
1,615
668
170
1,516
191,070
367,472

139,579
989
977
1,819
685
170
1,648
204,869
390,941

28,66329,972
46,631(864)
104,403

58,000636
46,134(864)
103,906

11,387(9,281)2,106
2,527
109,037
476,510(4,925)(16,215)(21,140)
4,067
86,833477,774(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement of Comprehensive Income]Quarterly Consolidated Statements of Income(Millions of yen)
Nine months ended
December 31, 2010
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Exchange loss
Equity in loss of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Compensation income
Licensed dealership charges
Gain on revision of retirement benefit plan
State subsidy
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Abnormal manufacturing cost
Loss on business liquidation
Accumulated depreciation
Loss due to disaster
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

Nine months ended
December 31, 2011

145,223
101,200
44,022
29,736
14,286

159,644
111,398
48,246
34,736
13,509

248
654
286
1,190

414
942
608
1,966

1,768
3,367
176
205
5,517
9,959

2,467
2,795
69
463
5,795
9,680

15
122
300
453
－
85
976

117
－
－
－
89
10
218

97
159
906
－
－
190
1,353
9,581
4,214
968
5,183
4,398
395
4,002

296
－
－
470
1,018
448
2,234
7,664
4,115
785
4,901
2,762
430
2,331

[Qarterly Consolidated Statements of Comprehensive Income](Millions of yen)
Nine months ended
December 31, 2010
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to shareholdersof parent company
Comprehensive income attributable to minority interests-7-

Nine months ended
December 31, 2011
4,398

2,762

(923)
(828)
(1,752)
2,646(16,312)(7,027)(23,340)(20,577)

2,273(20,915)373

337

(3) Notes Related to Going Concern
N/A(4) Segment InformationⅠ

FY2010 (From April 1, 2010 to December 31, 2010)

1.

Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalPharmaceutical

Glass &
Materials

Total

Other
(Note.1)

Total

Consolidated
statement ofincome(Note.3)

Adjustment(Note.2)

Net Sales

98,15028,775(2)Intersegment

141

13,4482,928

16,517

Total

98,29242,223

20,910161,426

Segment profit

14,540

1,888

2,002

18,432

66(1)Outside

17,982

144,908314

145,223-

145,223

32

16,550(16,550)-

347

161,774(16,550)

145,223

18,498(4,211)

14,286(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
2. Adjustment for the segment profit of (4,211) million yen includes elimination of inter-segment transaction of 255
million yen and corporate cost of (4,467) million yen. Corporate cost consisted primarily of sales, general andadministrative expenses and research and development cost which do not belong to the reporting segment.
3. Segment profit is adjusted to the operating income on the consolidated statements of income.
2.

Information on Goodwill by Reportable Operating Segment
N/A

-8-

Ⅱ

FY2011 (From April 1, 2011 to December 31, 2011)

1.

Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalPharmaceutical

Materials

Total

Other
(Note.1)

Total

Consolidated
statements ofIncome(Note.3)

Adjustment(Note.2)

Net sales

105,933

31,21022,300159,444200

159,644-

159,644

1,044

14,574

2,689

18,30833

18,342(18,342)-

Total

106,978

45,78424,989177,752

234

177,987(18,342)

159,644

Segment profit

13,617

3,584

1,312

18,514

168

18,683(5,173)

13,509(1)Outside(2)Intersegment(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
2. Adjustment for the segment profit of (5,173) million yen includes elimination of inter-segment transaction of 63
million yen and corporate cost of (5,237) million yen. Corporate cost consisted primarily of sales, general andadministrative expenses and research and development cost which do not belong to the reporting segment.
3. Segment profit is adjusted to the operating income on the consolidated statements of income.
2.

Change in Reportable Segment
From the first quarter period ended June 30, 2011, the name of business segment was changed partially and “Glass &Materials” is displayed as “Materials”. This change is just only for the name, and there is no difference about businesssegment itself from the same period of the previous year.

3.

Information about Impairment Loss of Tangible Assets and Goodwill by Reportable Operating Segment(Important change in the amount of goodwill)
As for material business, Nipro Glass France SAS and other three affiliates are included in the scope of consolidation.
Because of this event, goodwill increased 6,294 million yen from the end of the previous year.

(5) Notes to Statements of Shareholder‟s Equity, if having Significant Variation
N/A-9-