Summary Report of Consolidated Financial Results
For the Fiscal Year ended March 31, 2017
May 11, 2017stCompany 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 Headquarters
TEL: (06)6372-2331
Date of the ordinary general shareholders’ meeting: June 28, 2017
Payment date of cash dividends: June 29, 2017
Filling date of annual reporting: June 28, 2017
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)
1. Consolidated Results for the Year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)(1) Consolidated Results of Operations(Note: Percentages represent changes compared with the previous fiscal year.)
Net income
Net sales
Operating income
Ordinary income
attributable to ownersof parent
Millions of yen %Millions of yen %Millions of yen %Millions of yen %Year ended March 31, 2017359,699(1.9)
28,77018.9
23,16658.4
11,346(42.5)
Year ended March 31, 2016
366,650
12.8
24,20446.1
14,623(25.6)
19,71858.1
Note: Comprehensive income

Year ended March 31, 2017: 10,753 million yen (177.6%) Year ended March 31, 2016: 3,874 million yen ((88.2)%)

Earnings
per shareYen
67.58
116.22

Year ended March 31, 2017
Year ended March 31, 2016
Note: Equity in profit (loss) of affiliate

Dilutedearnings per
share
Yen
61.33
114.68

Raito of net income
to shareholders’equity%6.8
11.8

Year ended March 31, 2017: 112 million yen

Ratio of ordinary
income to total
assets%3.2
2.1

Net assets
Millions of yen
176,408
175,507

Note: Equity

Year ended March 31, 2016: 165,997 million yen(3)Equity ratio
%
22.1
23.4

Net assets per share
Yen
999.54977.64

Consolidated Cash Flows
Cash flows fromoperating activities
Millions of yen
33,47229,934

Year ended March 31, 2017
Year ended March 31, 2016

2.

%
8.0
6.6

Year ended March 31, 2016: (95) million yen(2) Consolidated Financial Position
Total assets
Millions of yen
Year ended March 31, 2017
752,839
Year ended March 31, 2016
708,882
Year ended March 31, 2017: 166,082 million yen

Ratio of operating
income to net sales

Cash flows frominvesting activities
Millions of yen(66,351)(16,513)

Cash flows fromfinancing activities
Millions of yen
36,483(3,633)

Cash and cash
equivalents
Millions of yen
112,046
111,977

Dividends
Annual dividends per year

Year ended March
31, 2016
Year ended March
31, 2017
Year ending March
31, 2018 (Forecast)

3.

Firstquarter

Secondquarter

Thirdquarter

Year-end
dividends

Annualdividends

Yen

Yen

Yen

Yen

Yen

Millions of yen%

Ratio ofdividends to
net assets(consolidated)
%

-

17.00

-

16.50

33.50

5,712

28.8

3.4

-

7.50

-

21.50

29.00

4,842

42.9

2.9

-

17.50

-

20.00

37.50

Annual totalof dividends

Pay-out ratio(consolidated)

34.6

Forecast of Consolidated Financial Results for the Year ending March 31, 2018 (From April 1, 2017 to March 31, 2018)(Note: Percentages for the full year and for the 2Q cumulative period represent changes compared with the previous fiscal
year and the same quarter of the previous fiscal year, respectively.)
Earnings
Net sales
Operating income
Ordinary income
Net income
per share
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
Six months ending Sept. 30, 2017
191,500
7.8
14,000(12.2)
12,900
93.7
8,100
177.1
48.75
Year ending March 31, 2018392,500
9.1
31,5009.5
29,10025.6
18,00058.6
108.33

*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 Policies)” 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, 2017: 171,459,479 sharesYear ended March 31, 2016: 171,459,479 shares[2] Number of treasury stock at end of the period
Year ended March 31, 2017: 5,300,071 sharesYear ended March 31, 2016: 1,666,187 shares[3] Average number of shares during the period
Year ended March 31, 2017: 167,903,832 sharesYear ended March 31, 2016: 169,661,548 shares
Note: Number of the stocks as of the Year ended March 31, 2017 included 460,000 shares and as of the Year ended
March 31, 2016 included 716,300 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, 2017 (From April 1, 2016 to March 31, 2017)(1) Results of Operations

Year ended March 31, 2017
Year ended March 31, 2016

(Note: Percentages represent changes compared with the previous fiscal year.)Net sales
Operating income
Ordinary income
Net income
Millions of yen %Millions of yen %Millions of yen %Millions of yen %248,812
6.6
16,209(19.9)
16,766(7.9)
12,13025.0
233,414
11.8
20,24031.9
18,206 (18.5)
9,700(19.3)
Earnings per share

Year ended March 31, 2017
Year ended March 31, 2016

Yen
72.25
57.18

Diluted earnings
per share
Yen
65.57
56.42

(2) Financial Position
Total assets
Millions of yen
561,216
516,443

Year ended March 31, 2017
Year ended March 31, 2016
Note: Equity Year ended March 31, 2017: 169,121 million yen

Net assets
Millions of yen
169,121161,098

Equity ratio
%
30.1
31.2

Net assets per shareYen
1,017.82
948.79Year ended March 31, 2016: 161,098 million yen*This report is exempt from auditing procedure based on the Financial Instruments and Exchanges Act.
*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 preparationand may contain certain uncertainties. Actual performance and other factors may differ from these projections
due to changes in circumstances and other developments. Please refer to the section of “1. Overview ofBusiness Results (3) Future outlook” on page 4 of the attached documents for the suppositions that form theassumptions for forecast and cautions concerning the use thereof.

Table of Contents
1.

Overview of Business Results

2(1)Overview of Current Term Business Results2(2)Overview of Financial Position

3(3)

Future outlook

4(4)Basic Policies on Distribution of Profits and Dividends
for years ended March 31, 2017 and ending March 31, 2018

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 Facing the Group7

4.

Basic Principles Underlying the Concept of Accounting Standards

85.

Consolidated Financial Statements and major notes

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 Statements

17(Notes Related to Going Concern)

17(Basis of Preparation for the Consolidated Financial Statements)

17(Changes in Accounting Policies)

19(Additional information)

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)

20(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

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

29

-1-

1.
(1)

Overview of Business Results
Overview of Current Term Business Results[1] Overview of Current Term
The global economy during the current consolidated financial year saw a continuation of the gradual economic
recovery in the United States and Europe, while China also showed some signs of improvement. As for the Japanese
economy, corporate earnings and personal consumption also remained steady, underpinned by yen depreciation
following the US Presidential election. However, the sense of uncertainty about the new US administration and thetrend of anti-globalization which has manifested in the wake of Brexit have resulted in a growing sense of uncertainty
about the future. Even under these circumstances, the Nipro Group has made efforts to increase sales and cut
production costs, and worked to improve business performance with the goal of realizing user wishes as soon as
possible.
As a result, sales for the current term were 359,699 million yen. Sales were down 1.9% YoY due to 14,862 million
yen from the sale of subsidiary Nipro Diagnostics, Inc. at the end of the previous year being included in the previous
year’s sales, and due to further yen appreciation this year. As for profit, operating income increased by 18.9% YoY to
28,770 million yen due to a decrease in the cost of sales and other factors. Ordinary income rose 58.4% YoY to
23,166 million yen due to a decrease in exchange losses and other factors. Net income attributable to owners ofparent was 11,346 million yen. Although extraordinary loss decreased by 1,144 million yen YoY, it decreased by
42.5% YoY as the gain on the sale of Nipro Diagnostics, Inc. was 14,072 million yen in the previous year.
The overview of the results for the current period under review by business segment is as follows.
a. Medical-Related Business
Medical-Related Business domestic sales saw a tougher market situation due to the revisions to medical service
fees and drug prices in April 2016. Under such circumstances, the sales of the Medical Sales Division remained solidin each category of injection-transfusion products, enteral-alimentation products, testing products, dialysis products,
cardiovascular products and cardiac surgery (CVS) products. Sales growth was particularly high for HDF filters(dialysis products), followed by left ventricular assist device “HeartMate II,” (cardiac surgery (CVS) products), anddrug eluting balloon catheter “SeQuent® Please,” (cardiovascular products). Sales at the Pharmaceutical Sales
Division were steady due to the sales growth of existing products and addenda listing items in June and December
2016 and the expansion of the market with the promotion policy of generic drugs. However, price competition in thedomestic market continues to intensify with advance sales of authorized generic drugs (AG) and many manufacturers
vying for sales of one item. Therefore, we will further strengthen sales promotions to dispensing pharmacies anddiagnosis procedure combination (DPC) hospitals, as well as try to increase our oral and external use drug market
share and boost injectable drugs information offering activities through collaborations with pharmaceuticalwholesalers.
Despite an increase in sales quantity of mainstay dialysis products such as dialyzers and hospital products,
overseas sales decreased from the previous year due to yen appreciation which lowered unit prices of products andalso due to the sale of Nipro Diagnostics, Inc., a consolidated subsidiary. We will continue to actively strengthen
overseas sales networks and bolster direct sales and expand sales in order to quickly respond to front-line needs. We
established offices in Austria, Ethiopia, Vietnam and China during this fiscal year. In India, a particular focus of ours,
we established a total of 16 offices that cover the entire country. Through these sales offices, we have enhanced ourpresence in the market by providing more locally-oriented and finely-tuned services and responding to front-line
needs.
New overseas manufacturing facilities (in India, Indonesia, Bangladesh and Hefei in China) boosted production
capacity under an established quality system to further improve sales, and succeeded in increasing sales in theircountries and surrounding areas. In addition, we obtained approval to establish a new medical device manufacturing
facility on the outskirts of Ho Chi Minh City in Vietnam in March 2017.
As a result, net sales of this business decreased 3.7% YoY to 262,198 million yen.
b. Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business, we have broadened our pharmaceutical contract services to encompass
contracts to develop products from manufacturing products from all the formulation design of existing drugs for oral
and external use and injectable drugs, and contracted development from dosage design in each dosage form,
particularly using our expertise developing and supplying vials, syringes, bags, and other packaging containers. We
also endeavored to expand the contracted business by offering a diverse range of detailed yet wide-ranging contract
services through support for lifecycle management where we believe we can enhance the value-added features andrealize distinct service differentiation. In addition, net sales have remained steady due to our focus on efforts to
upgrade and expand our contracted manufacturing capabilities for dedicated biopharmaceuticals lines and highpotency active pharmaceutical ingredients manufacturing plant lines, as well as increased production volume atoverseas production facilities.
Sales of pharmaceutical containers as well as devices related to pharmaceutical preparation and administration
steadily increased thanks to our ability to offer containers and systems, such as small-volume bags, pre-filled syringes(plastic and glass) in addition to rubber stoppers for vaccine use and containers for kit products, suitable to each
pharmaceutical product which we developed ourselves or through joint development with pharmaceuticalmanufacturers in order to meet various needs in the medical front. In addition, under the government’s policy to curb
medical expenses, we have worked together with domestic and foreign pharmaceutical manufacturers to enhance thecomprehensive lifecycle management of pharmaceutical products, taking into consideration the development of
combination products (collaboration between our own pharmaceutical products and medical devices), self-injection
systemization, and dosage form/administrating path modification.
As a result, net sales of this business increased 11.0% from the previous year to 69,140 million yen.

-2-

c. PharmaPackaging BusinessIn the PharmaPackaging Business, adding to the business of our conventional products, we have made efforts toengage in technical marketing through academic channels, by attending academic conferences for example, tounderstand the needs of globalizing customers and secure new demand. We have also promoted the development of
new technologies and new products domestically and overseas to support injectable formulations and filling
processes, which require quality with high stability.
For the domestic department, sales of thermos bottles expanded as we made efforts to improve quality for stablesupply. Sales of vials and prefilled syringes increased by collaborating with the Pharmaceutical-Related Business andselling them under the policy of "One Nipro". At the Biwako Factory, while we continued to exhaustively improve thequality and optimize the manufacturing environment by proceeding with the introduction of new equipment, theconstruction of the rubber stopper plant was completed and we aim to start production from fiscal 2017. As a result,domestic sales grew steadily.
Overseas sales have faced a difficult market environment, impacted by the continuing appreciation of yen during thecurrent period, the uncertainty around the future of the US and European market due to Brexit and the US presidential
election, as well as the Chinese government’s push to strengthen GMP which has led to a decrease in the number ofpharmaceutical companies. Amid this backdrop, we have taken aggressive steps to expand sales ofhigh-value-added products. This helped net sales reach almost the same level as the previous year, excluding theimpact of foreign currency conversion due to the appreciation of the yen. On the manufacturing front, in addition to the
expanding shipments of high-value-added products such as sterile syringes and VIALEX®, we stepped up thestabilization and improvement of quality and cost reductions at each factory by automating the manufacturing process
and improving production efficiency. As a result, we achieved improved profitability.
As a comprehensive manufacturer of pharmaceutical packaging materials, the PharmaPackaging Business Division
will continue to strive to expand business by developing and introducing advanced products to the market that meet
medical needs of countries all over the world.
As a result, net sales of this business decreased 12.0% YoY to 28,331 million yen.
d. Other BusinessAmong other business, net sales from the real-estate rental business were 29 million yen (down 7.0% YoY).

(2)

Overview of Financial Position[1] Assets, liabilities, and net assets
Total assets increased 43,956 million yen YoY to 752,839 million yen. Current assets increased 18,657 million yen
and noncurrent assets increased 25,298 million yen. The increase of current assets was due to an increase of 9,557
million yen in goods and products, and the increase of noncurrent assets was due to an increase of 10,327 million yen
in investment securities.
Total liabilities increased 43,055 million yen YoY to 576,431 million yen. Current liabilities decreased 355 million yen
and noncurrent liabilities increased 43,411 million yen. The main reason for the decrease in current liabilities was adecrease of 7,915 million yen in short-term loans payable, and the primary reason for the increase in noncurrent
liabilities was a 56,235 million yen increase in long-term loans payable.
Total net assets increased 900 million yen YoY to 176,408 million yen. Shareholders' equity increased by 586 million
yen and accumulated other comprehensive income decreased by 502 million yen.
[2] Consolidated cash flow
The ending balance of cash and cash equivalents (“cash”) in the current period increased 69 million yen YoY to
112,046 million yen.
(Cash flows from operating activities)
Cash provided by operating activities was 33,472 million yen. The main accounts of cash inflow were profit before
income taxes (18,324 million yen) and depreciation (31,128 million yen). The main account of cash outflow was anincrease in inventory (17,730 million yen).
(Cash flows from investing activities)
Cash used in investing activities was 66,351 million yen. The main account of cash outflow was payments forpurchase of noncurrent assets (64,146 million yen).
(Cash flows from financing activities)
Cash obtained by financing activities was 36,483 million yen. The main account of cash inflow was proceeds fromlong-term loans payable (145,298 million yen), and the main account of cash outflow was repayment of long-term loans
payable (97,424 million yen).
[3] Trend of the cash flow indicatorsst

Shareholders’ equity ratio (%)
Ratio of market value ofshareholders’ equity (%)
Debt redemption (years)
Interest coverage ratio

nd

rd

th

The 61 period
Year ended
March 31,2014
20.2

The 62 period
Year ended
March 31,2015
24.1

The 63 period
Year ended
March 31,2016
23.4

The 64 period
Year ended
March 31,2017
22.1

22.5

27.9

25.6

34.7

16.9
5.5

14.3
7.0

12.7
6.6

12.8
8.6

-3-

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 statement ofcash 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)

Future outlook
The future of the world economy is murkier than ever amidst of the uncertainty of the policy of the new administrationof the United States and the growing trend for countries around the world to look inward and prioritize domestic affairs.
Even under such circumstances, the Nipro Group continues to work toward achieving a consolidated sales goal of
500,000 million yen by fiscal year 2020. We will focus on accelerating the development of new technologies and new
products, and making social contributions through technological innovation, which in turn leads to businessdevelopment, and will continue further the concept of local production and consumption.
Our forecasts for the fiscal year ending March 31, 2018 include consolidated net sales of 392,500 million yen (up 9.1%
YoY), operating income of 31,500 million yen (up 9.5% YoY), ordinary income of 29,100 million yen (up 25.6% YoY),
and net income attributable to the shareholders of parent company of 18,000 million yen (up 58.6% YoY).

(4)

Basic Policies on Distribution of Profits and Dividends for years ended March 31, 2017 and ending March 31, 2018
We position profit return as an important management measure, and will provide dividends to shareholders. Internal
reserves will be invested in the sales and production facilities as well as in research and development, in view ofenlarging the firm management basis and long-term business developments, so as to ensure stable and continuous
growth.
According to the above-mentioned policies, we plan annual dividends of 29.00 yen per share. As we already paidinterim dividends of 7.50 yen per share, year-end dividends are to be 21.50 yen per share to be proposed to theCompany’s 64th ordinary general meeting of shareholders.
Dividends for year ending March 31, 2018 are expected to be made in accordance with our basic policies.

-4-

2.

Corporate GroupOur group consists of the Reporting Company (“the Company”), its 91 subsidiaries and 6 affiliates 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.
NexMed International Co., Ltd. develops, manufactures and sells orthopedic medical equipment.
Nichihos Co., Ltd. manages dispensing pharmacies and sells pharmaceutical products.

Overseas:

Nipro (Thailand) Corporation Ltd., Nipro (Shanghai) Co., Ltd. (China) and Nipro Medical LTDA. (Brazil)
and other subsidiaries purchase some raw materials and machinery for their production from theCompany, manufacture medical equipment, and sell them through the Company and its subsidiaries aswell 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 products mainly from the Company 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., an affiliated company, manufactures and sells active pharmaceuticalingredients, etc.

Overseas:

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

< PharmaPackaging Business >Domestic:

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

Overseas:

Nipro PharmaPackaging (Shanghai) Co., Ltd. purchases some raw materials through the Company
and sells them to its subsidiaries in China such as Chengdu Pingyuan Nipro Pharmaceutical Packaging
Co., Ltd.
Subsidiaries such as Nipro PharmaPackaging Americas Corp. (U.S.A.), Nipro PharmaPackaging
France S.A.S. (France), Nipro PharmaPackaging Germany GmbH (Germany), Nipro PharmaPackaging
India Private Limited (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
equipment and is engaged in leasing of real estate properties.
Nissho Insurance & Travel Co., Ltd. operates non-life insurance agency and travel businesses mainly
for the group 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.

ニ
プ
ロ
株
式
会
社

(Overseas)
Medical-Related Business《Sale》◎Nipro Europe N.V.

◎Goodman Co.,Ltd.

and 17 other consolidated subsidiaries◎Cell Science & Technology Institute,Inc.

◎Nipro Medical Corporation◎NexMed International Co., Ltd.

◎Nipro Trading (Shanghai) Co.,Ltd.

and 2 unconsolidated subsidiaries◎Nipro Asia PTE LTD
and 14 other consolidated subsidiaries《Sale》

and 1 affliated company◎Nichihos Co., Ltd.
and 12 other consolidated subsidiaries《Manufacture and Sale》

and 1 affiliated company◎Nipro (Thailand) Corporation Ltd.
◎Nipro (Shanghai) Co.,Ltd.
◎Nipro Medical LTDA.

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

Other Business《Non-life insurance and travel agency》○Nissho Insurance & Travel Co.,Ltd.

N
i
p
r
o
c
o
r
p
o
r
a
t
i
o
n

◎Nipro India Corporation Private Limited◎Nipro Medical (Hefei) Co.,Ltd.
and 12 other consolidated subsidiaries
and 1 other unconsolidated subsidiaryand 2 other affiliated companies

Pharmaceutical-Related Business《Manufacture and Sale》◎Nipro Pharma Vietnam Co., Ltd.
■Mekophar Chemical Pharmaceutical Joint-Stock Co.

PharmaPackaging 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 PharmaPackaging India Private Limited
and 2 other consolidated subsidiaries◎Chengdu Pingyuan Nipro Pharmaceutical
Packaging Co.,Ltd.
and 3 other consolidated subsidiaries

Supply of raw materials
Supply of products and merchandises
Other transactions《Sale》○Nipro PharmaPackaging (Shanghai) Co.,Ltd.

◎Consolidated subsidiary○Unconsolidated subsidiary■Affiliated company

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

-6-

3.

Management Policies(1) Basic Policies of Management
Since our foundation in 1954, the Company’s business philosophy has been to contribute to society through corporate
activities under the concept of “technological innovation”. In keeping with this philosophy, it has constantly sought toachieve growth through pursuit of distinctive products and technology for better quality of life (QOL) among patients andin response to issues and needs at medical care sites.
In addition, bearing in mind that the balance between “stability” and “growth” is most important for a company, we
implement a “performance-linked remuneration system”, holding employees responsible for boosting the performanceof individual businesses.
(2) Target Management Indicators
We aim to achieve consolidated net sales of 1,000,000 million yen by fiscal 2030. As a first step, we aim to achieve
consolidated net sales of 500,000 million yen and ordinary income of 40,000 million yen by fiscal 2020. In order torealize these goals, we are moving towards steady development in the medical, pharmaceutical, and glass businesses.
(3) Medium- to Long-term Management Strategies
Our basic policy and management strategy lie in expansion of market share and sales in the global market by raising
our production capacity for products projected to exhibit quantitative growth, and providing products endowed withstable quality and cost competitiveness. We are also determined to develop products of value and safety as viewed
from the user’s perspective by making effective use of our original technology and other management resources
spanning the three business segments of Medical Devices, Pharmaceuticals, and PharmaPackaging Business offering
pharmaceutical packaging materials including glass products.
In our Medical-Related Business, we plan to expand our share of the market and will take vigorous action to fill out
our line-up and open up new sales channels in domains such as diabetes, vascular products and surgical device (SD)products, as well as artificial kidney dialyzers (our mainstay products in this field) and other dialysis products.
For overseas sales, we will continue strengthening our sales organization. We have focused on establishing new
business bases and actively developing sales channels in India, China, and other developing regions where further
market expansion is expected and will continuously do so in order to take advantage of demand in expanding markets.
For India in particular, our aggressive building of a community-based sales network means we have now opened sales
offices in 16 states, and now have a system in place covering all 29 states in the country.
Our arterial venous fistula (AVF) needles already command a leading global market share, and we plan to further
fortify the direct sales structure in Europe and the United States for dialyzers and strengthen ties with major dialysis
center groups to increase our share.
We will meet expanding demand in the market by increasing the production of dialyzers in the Indian and Chinese
factories, and raising the output of AVF needles and blood tubing sets in Thailand, India, China, Indonesia and Brazil.
In the field of generic drugs, demand is expected to continue its 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 share of
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 will continue concentrating on the creation of various
sales routes to users such as university hospitals, foundation hospitals and dispensing pharmacy groups, whilepursuing greater synergies through coordination with our Medical Equipment Sales Division.
In the Contracted Manufacturing Division of our Pharmaceutical-Related Business, we are building setups for
production and quality assurance to meet 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 to improve
production site capacity outside Japan in order to raise our stable supply capability and cost competitiveness, andthereby enable us to supply medical products to the whole world.
We will continue to develop and supply safe and useful products as viewed from the medical-front and patient’s
perspective through a collaboration of pharmaceutical containers as well as devices related to pharmaceuticalpreparation and administration that only Nipro can offer.
In the PharmaPackaging Business, we plan to continue expanding our market share by using glass processing
technologies cultivated over many years of operations as a foundation for providing even more detailed customer
service backed by region-specific strategies matched to demand for globalization in all countries and growing demandfor high-quality products in developing countries. We will also strive to expand our business by widening our productlines 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 and other high value-added products whilemoving from glass sales to solution sales.
(4) Issues and Challenges Facing the GroupIn our Medical-Related Business, the Medical Sales Division will strive to create designs reflecting considerations for
medical safety and security, and to develop products that alleviate the environmental burden in the fields of products
related to transfusion, diabetes, dialysis, vascular and SD. It will also seek to develop products that are gentle tomedical workers, patients, and the environment, while actively marketing and expanding sales of products addressing
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 will endeavor to increase the brand power of Nipro as a comprehensive medical enterprise in medical-7-equipment and generic drugs while continuing to heighten our presence in the market.
In our Pharmaceutical-Related Business, our main goals are to improve production capacity, stabilizing supply,
securing reliability on quality, and achieving a significant reduction in manufacturing costs to increase our pricecompetitiveness as the government accelerates deployment of measures to curb medical costs. With a view tosupplying products to the global market, it is also essential for us to improve our development and quality assurance
system in both software and hardware in order to fully meet pharmaceutical quality standards in the United States andEurope and we will deal with pharmaceutical affairs in each country. At the same time, we consider the creation ofmanagement systems to meet country risks at our overseas plants, and shall act appropriately to each culture.
In the PharmaPackaging Business, as the market changes, such as through restructuring of pharmaceuticalcompanies and pressure to keep drug expenses in check, we regard it a challenge to urgently build a strict
management system to efficiently and stably supply pharmaceutical packaging materials and other components inorder to cope with these changes. We will therefore establish a globally complementary system by linking the domestic
and overseas plants and unifying our product specifications and quality standards, while strengthening the stablesupply system in order to create a system leveraging our manufacturing technology capabilities to enable the stablemanufacture, storage, and sale of high-quality products.
We plan to complete construction of a rubber stopper plant on premises of Biwako Factory in June 2017, and aim to
implement even more efficient business management and improve product quality. We will strive to build the Nipro
brand by promoting changes to the factory that will make us proud to showcase it both within and outside the company,
as well as to the world.
4. Basic Principles Underlying the Concept of Accounting Standards
J-GAAP is adopted in the current period. The Company will keep a close eye on future trends while considering theapplication of International Financial Reporting Standards (IFRS).

-8-5. Consolidated Financial Statements(1) [Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2016
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, 2017

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

123,188
121,038
78,241
10,78426,303
6,404
22,194(1,378)386,775

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

199,471(90,929)
108,541
236,514(164,778)
71,73623,9873,855(2,642)
1,212
25,95350,232(37,441)
12,791
244,222

28,8762,469
13,56644,91327,996
2,263
13,57543,83658,560253
3,947
15,625(6,292)
72,094
340,764
708,882

68,888227
1,459
11,651(4,221)78,004
366,063
752,839

(Millions of yen)
As ofMarch 31, 2016
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
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, 2017

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

57,587
117,933
10,00015,1601,107
13,509
343
4,304
4,075
105
10,35017,313
251,792

18,3305,215

25,00025,000224,945
3,132
1,985
5,017
553
18
2,245
281,227
533,375

281,181
2,869
1,766
5,126
592
88
2,797
324,639
576,431

84,39773,067(1,475)
155,990

84,39778,422(6,243)
156,577(3,347)(12)
14,187(821)
10,007
9,509
175,507
708,882

1,589
(141)
8,640
(582)
9,504
10,325
176,408
752,839

(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
Share of profit of entities accounted for using equity method
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
Commission for syndicate loan
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
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
Loss on step acquisitions
Provision of allowance for doubtful accounts
Compensation expenses
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 -FY2015(From April 1, 2015
to March 31, 2016)
366,650
250,773
115,876
91,671
24,204(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)359,699244,602
115,097
86,326
28,770

733
1,449
－
879
1,894
4,955

520
1,475
112
30
1,385
3,524

4,501
95
1,046
608
7,181
1,103
14,536
14,623

3,796
－
786
1,216
2,273
1,056
9,128
23,166228
3,721
14,072

84
1,900
－

1,601

－

154
19,777

144
2,129

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

480
731
1,554
0
1,879
－
282
934
1,108
6,971
18,324
6,613
107
6,720
11,604258
11,346

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 -FY2015(From April 1, 2015
to March 31, 2016)
19,478(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)
11,604(1,035)(51)(13,860)
(655)

4,936
(129)
(5,860)
240

(1)

(36)

(15,603)
3,874

(850)
10,753

4,298

10,844

(423)

(90)

(3) [Consolidated Statements of Shareholders' Equity]

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
Other
Net increase (decrease) during the period
Balance at end of year
Earned surplus
Balance at beginning of year
Increase (decrease) during the period
Dividend of surplus
Profit attributable to owners of parent
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
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 -FY2015(From April 1, 2015
to March 31, 2016)(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)84,39784,397－84,397－84,397

635

－

(635)
(635)
－

－
－

58,88573,067(5,371)
19,718(165)
14,18273,067(4,073)
11,346(0)(1,916)
5,354
78,422(1,686)(1,475)

(3)
215
211
(1,475)(5,001)
233(4,767)(6,243)

142,231

155,990(5,371)
19,718
(3)
215
－
(800)
13,758
155,990(4,073)
11,346(5,001)233(0)(1,916)586
156,577

FY2015(From April 1, 2015
to March 31, 2016)
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 currency 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
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 -(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)(2,311)(3,347)(1,036)

4,936(1,036)(3,347)

4,936
1,589

39

(12)

(51)

(129)

(51)
(12)

(129)
(141)

27,87014,187(13,682)(5,547)(13,682)
14,187(5,547)
8,640

(170)

(821)

(650)

238

(650)
(821)

238
(582)

25,427

10,007(15,420)(502)(15,420)
10,007

(502)
9,504

11,1509,509(1,640)815(1,640)9,509

815
10,325

178,810

175,507(5,371)
19,718
(3)
215
－
(800)

(4,073)
11,346(5,001)233(0)(1,916)(17,061)313(3,302)
175,507900
176,408

(4) [Consolidated Statements of Cash Flows]

FY2015(From April 1, 2015
to March 31, 2016)
Net cash provided by (used in) operating activities
Income before income taxes and Non-controlling interests
Depreciation
Impairment loss
Amortization of goodwill
Share of (profit) loss of entities accounted for using equity method
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 sales of investments in capital of subsidiaries and associates

Gain (loss) on step acquisitions
State subsidy
Loss on reduction of non-current assets
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
Purchase of shares of subsidiaries
Purchase of shares of affiliates
Purchase of shares of affiliates accounted forusing equity method
Purchase of shares of subsidiaries
resulting in change in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for sales 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 capital of subsidiaries
resulting in change in scope of consolidation
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 -(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)

26,28430,147
0
3,686
95
1,023
488
(2,182)
4,501
1,645
289
(14,072)(1,601)
2,238(3,721)
3,124(5,681)(6,704)
6,161(9,795)814
255
36,996
2,180(4,505)334(292)(4,779)29,934

18,324
31,128
1,554
2,907
(112)
433
482
(1,996)
3,796
4,008
0
369
－
－
(1,900)1,879(9,317)(17,730)
4,576(1,788)4,701
1,270
42,5892,101(3,908)261(262)(7,308)33,472(14,506)
13,516
(512)
1,114
－
－
－

(11,592)
14,325(1,092)0(8)(1,032)(926)－(3,126)

382

－

－

(703)

17,262

－

2,249

－

(41,936)
2,575
(122)

(64,146)
409
(78)

3,721

900

(806)
(1,615)
2,172
(10)
－
(16,513)

184
(74)
572
0
37
(66,351)

FY2015(From April 1, 2015
to March 31, 2016)
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
Purchase of treasury shares of subsidiaries
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 capital of 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 -(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)(32,858)
105,369(66,011)24,967(27,840)
215
(3)
(12)
1,317
(1,792)(5,362)(22)

1,018
145,298(97,424)
1,989(2,262)233(5,001)(6)－(1,157)(4,072)(28)(1,349)(2,104)(250)－(3,633)
3,218
13,004
98,19936,483(3,773)(168)
111,977

773

237

111,977

112,046(5) Notes to Consolidated Financial Statements(Notes Related to Going Concern)
N/A(Basis of Preparation for the Consolidated Financial Statements)
1) Scope of consolidation[1] Consolidated subsidiaries: 87
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 Private Limited

・
・
・
・
・

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

Four companies including Nipro Pharma Vietnam Co., Ltd. which were established during the fiscal year 2016, twocompanies including Nipro PharmaPackaging (Shanghai) Co.,Ltd. which increased their importance within the Group,and three companies including NexMed International Co, Ltd. whose stocks were acquired, were included in thescope of consolidation from the consolidated fiscal year 2016.
Nipro Tube Glass Private Limited was removed from the consolidation of the fiscal year 2016 after transferring all
stock.
[2] Name of major unconsolidated subsidiary･ Nissho Insurance & Travel 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: 1
Due to acquisition of the stock, Mekophar Chemical Pharmaceutical Joint-Stock Company is included in the scopeof equity method application from the consolidated fiscal year 2016.
[2] Name of major unconsolidated subsidiary not accounted for by the equity method:･ Nissho Insurance & Travel Co., Ltd.
Name of major 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 companies, 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 on or after April 1, 1998 (excluding attachedstructures), and facilities attached to buildings and structures acquired on orafter April 1, 2016 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.
[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 (from 5 to 20
years).
[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 andthe interest rate risk involved in procuring funds and hedge items are identified on an individual contract basis.

- 18 -

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 Practical Solution on a change in depreciation method due to Tax Reform 2016
The company has applied the “Practical Solution on a change in depreciation method due to Tax Reform 2016”(ASBJ Practical Issues Task Force No. 32 issued on June 17, 2016) and changed the depreciation method forfacilities attached to buildings and structures acquired on or after April 1, 2016 from the declining-balance method tothe straight-line method effective from the current consolidated fiscal year. As a result, compared to the previous
method, consolidated operating income, consolidated ordinary income and consolidated income before income
taxes increased 380 million yen in the current period under review.
(Additional information)
Application of Implementation Guidance on Recoverability of Deferred Tax Assets
The company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26 issued on March 28, 2016 from the current consolidated fiscal year.
(Notes to the Consolidated Balance Sheets)(Previous period)
1) Pledged assets(Current Period)

19,987

mil.yen

15,465

mil.yen100

mil.yen13

mil.yen2,541

mil.yen4,718

mil.yen257

mil.yen7

mil.yen2) Discounted notes receivable3) Accounts related to unconsolidated subsidiaries
and affiliate companies
Investment securities (stock)
Other of investments and other assets(Investments in capital)(Notes to the Consolidated Statement of Income)(Previous period)
Research and development expenditure included inselling general and administrative expenses andmanufacturing cost.

10,269(Current Period)

mil.yen

11,517

mil.yen(Notes to the Consolidated Statements of Shareholders’ equity)
Previous 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(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 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.

- 19 -

3. Dividends(1) Amount of dividends paid
Decision
June 26, 2015at ordinary generalshareholders’ meeting
November 11, 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

Common stock

Millions of yen
2,898

Yen
17.00

Basis date

Effective date

March 31,2015

June 29, 2015

September 30,2015

December 8, 2015

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in the next
consolidated accounting period.
Sort ofProceeds ofTotal amount of
Dividends
Effective
Scheduled Decision
Basis datedividends paid
sharesdividends
per shares
date
June 28, 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.

Current period (From April 1, 2016 to March 31, 2017)
1. Sort and total numbers of shared issues
Sort of shares
Number of shares
as of April 1, 2016
Common stock
171,459,479

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2017
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, 2016
numbers
numbers
As of March 31, 2017
Common stock
1,666,187
3,890,184
256,300
5,300,071(Notes) 1. Number of the stocks increased during the period consists of the increase of 3,889,200 shares by theacquisition of its own shares based on the resolution of the Board of directors and the increase of 984
shares by the 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 716,300 shares owned by Trust Account E,
and number of the stocks as of the end of the period included 460,000 shares owned by Trust Account E.
3. Dividends(1) Amount of dividends paid
Decision
June 28, 2016at ordinary generalshareholders’ meeting
November 10, 2016
at board of directors meeting

Sort of shares

Total amount ofdividends paid

Common stock

Millions of yen
2,813

Dividends
per shares
Yen
16.50

Basis date

Effective date

March 31,2016

June 29, 2016

Millions of yen
Yen
September 30,2016 December 8, 2016
1,260
7.50
(Note) 1. Total amount of dividends paid decided in the ordinal general shareholders’ meeting on June 28, 2016
includes the dividend on shares owned by Trust Account E, 11 million yen.
2. Total amount of dividends paid decided in the board of directors meeting on November 10, 2016 includes
the dividend on shares owned by Trust Account E, 4 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.
Sort ofProceeds ofTotal amount of
Dividends
Effective
Scheduled Decision
Basis datedividends paid
sharesdividends
per shares
date
June 28, 2017at ordinary generalshareholders’ meeting

Commonstock

EarnedsurplusMillions of yen
3,582

Yen
21.50

March 31, 2017

June 29, 2017

(Note) Total amount of dividends paid includes the dividend on shares owned by Trust Account E, 9 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 is- 20 -

available 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 PharmaPackaging.

*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).
*PharmaPackaging
PharmaPackaging division sells glass for vials and ampoules in the field of glass for medical use and sells glass forthermos bottles and glass for lighting purpose in the field of glass & materials products. Overseas subsidiaries
manufacture and sell 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
FY2015 (From April 1, 2015 to March 31, 2016)(Millions of yen)
Total

Adjustment(Note.2)

Consolidated
financialstatements(Note.3)

Reportable Segment
Other(Note.1)

Medical-Related

Pharmaceutical-Related

PharmaPackaging

272,167

62,26632,184

366,61832

366,650-

366,650

Total

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

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

2,648

4

1,033

3,686

-

3,686

-

3,686

Other items(1) Depreciationamortizationand(2) Amortization of goodwill(3) Increase in tangible and24,54921,277
6,094
51,92051,9205,180
57,101
intangible 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.
(1) Adjustment for the segment profit (loss) of (14,502) million yen includes deduction of intercompany profits oninventories of (1,069) million yen and corporate cost of (13,432) million yen. Corporate cost consists primarilyof sales, general and administrative expenses and research and development cost which do not belong to
the reporting 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 (loss) is adjusted to the operating income on the consolidated statements of income.

- 21 -

FY2016 (From April 1, 2016 to March 31, 2017)(Millions of yen)
Total

Adjustment(Note.2)

Consolidated
financialstatements(Note.3)

Reportable Segment
Other(Note.1)

Medical-Related

Pharmaceutical-Related

PharmaPackaging

262,198

69,14028,331

359,67029

359,699-359,699

Total

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

1,575

9,917

0

11,492724

12,216(12,216)-

263,773
30,63879,057
14,13528,331(1,313)371,162
43,460754(10)371,916
43,449(12,216)(14,679)

359,699
28,770

Segment assets

369,540

160,467

61,262591,270

1,237

592,508

160,330

752,839

14,231

10,761

3,302

28,295

028,295

2,832

31,128(5) Amortization of goodwill

2,083

4

819

2,907

-

2,907

-

2,907

(6) Increase in tangible andintangible fixed assets

22,684

17,695

6,795

47,175731

47,907

10,40358,310

Other 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 (loss) of (14,679) million yen includes realization of intercompany profits oninventories of 1,248 million yen and corporate cost of (15,927) million yen. Corporate cost consists primarilyof sales, general and administrative expenses and research and development cost which do not belong to
the reporting segment.
(2) Adjustment for the segment assets of 160,330 million yen includes elimination of inter-segment transaction of(7,339) million yen and corporate assets of 167,670 million yen. Corporate assets consisted primarily of cash
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 2,832 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 (loss) is adjusted to the operating income on the consolidated statements of income.

Change in Reportable Segment
Effective from this reporting period, we have changed the name of one of the segments as reportable operating
segments and “Glass-related” is now presented as “PharmaPackaging”.
This change affects only the name of the segments and does not constitute a change in business segment. As aresult of this change, Segment information for the previous consolidated fiscal year also presents the new name.

- 22 -

[Related Information]
FY2015 (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(Millions of yen)Japan

America

203,461

Europe72,416(2) Property, plant and equipment
Japan

46,156

America

125,708

Asia
44,615

Europe
9,585

Total

(Millions of yen)
Total

Asia
14,685366,650

73,777

223,756

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

Medical-Related

0

Total

PharmaPackaging

-

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

Pharmaceutical-Related

23,718

Total

PharmaPackaging

8

5,149

Other

28,876

Total-

28,876FY2016 (From April 1, 2016 to March 31, 2017)
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

221,331

Europe53,239(Millions of yen)
Total

Asia
42,57942,548(2) Property, plant and equipment
Japan359,699(Millions of yen)

America

148,090

Europe9,791

Asia
16,708

Total
69,632

244,222

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

Pharmaceutical-Related

32

120

Total

PharmaPackaging

1,401

Other
1,554

Total
-

1,554

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

Balance of theficical year-end

24,957

Pharmaceutical-Related

PharmaPackaging4- 23 -

3,034

Total
27,996

Other

Total
-

27,996(Per Share Information)
Previous period(From April 1, 2015
to March 31, 2016)

Current period(From April 1, 2016
to March 31, 2017)

Net assets per share

977.64 yen

999.54 yen

Earnings per share116.22 yen

67.58 yen

Diluted Earnings per share

114.68 yen

61.33 yen

Base of the calculation is as follow;
1. Net assets per share
Previous period(As of March 31, 2016)

Current period(As of March 31, 2017)

175,507

176,408

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

9,509

10,325

Net assets related to the common stocks(million yen)

165,997

166,082

Common stocks issued (Thousands shares)

171,459

171,459

Treasury stocks of common stock (Thousands shares)

1,666

5,300

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

169,793

166,159

Total net assets in B/S (million yen)

2. Earnings per share and diluted earnings per share
Previous period(From April 1, 2015
To March 31, 2016)

Current period(From April 1, 2016
To March 31, 2017)

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

19,718

11,346--

19,718

11,346

169,661

167,903

-

-

2,289

17,099--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 thecomputation of diluted earning per share because of nothaving a dilutive effect(Material Subsequent Event)N/A- 24 -

6. Non-consolidated Financial Statements(1) [Non-consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2016
AssetsCurrent Assets
Cash and deposits
Notes receivable-trade
Electronically recorded monetary claims - operating
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, 201775,385
11,752
4,982
86,13931,786
3,461
3,030
636
361
954
2,756
2,388
1,551
296
(11)
225,472

69,868
12,1737,040
92,48636,780
5,963
3,712
1,362
421
1,164
539
2,729
2,006
303
(24)
236,53142,966(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
43,36450,332(25,594)
24,7382,565(1,754)810
63,827(53,364)
10,463109(99)
920,058(17,130)
2,928
8,432
1,251
(727)
523
2,164
50,071

(Millions of yen)
As ofMarch 31, 2016
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
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
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, 2017

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

1,819
2
3
758
2,262
23
281
5,150

53,829132,277
039,75621
8,722

61,695
152,686042,406
14
7,865

3,086

3,270

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

2,144
251
1,142
671
(2,684)269,463324,685
561,216

15,36739,52260,93810,000
400
676
5,995
389
865
165
7
97
26
1,321
33
5,728
1,612
143,147

17,86843,15647,551
10,00014,400
766
7,854
343
838
625
521
118
16
1,459
34
5,194
892
151,638(Millions of yen)
As ofMarch 31, 2016
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, 2017

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

3,400
25,000205,997
2,238
6
1,588
395
1,830
240,456
392,095

84,39784,397

635
635

635
635

3,215

3,622

16
105
72,435
6,363
82,135(1,475)
165,693

16
105
75,835
10,61390,192(6,243)
168,982(4,595)(4,595)
161,098
516,443

138
138
169,121561,216(2) [Non-consolidated Statements of Income]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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Provision of allowance for doubtful accounts
Commission for syndicate loan
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 in capital ofsubsidiaries and associates
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of noncurrent assets
Loss on reduction of non-current 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
Compensation expenses
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income- 28 -FY2015(From April 1, 2015
to March 31, 2016)(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)

233,34370
233,414

248,703108
248,81228,52042,554135,1798
206,262
31,786
174,476
58,937
38,697
20,24031,78645,203
149,29673
226,360
36,780189,580
59,23243,022
16,209

518
4,254
396
557
5,725

279
4,044
30
550
4,904

2,054
487
223
570
4,243
180
7,759
18,206

1,880
271
－
1,150
854
190
4,347
16,766

34
31

14
1,097

937

－

－
1,003

0
1,111

57
38
－
308
1,987
4,291
－
177
6,859
12,350
1,751
897
2,649
9,700

478
98
1,076
0
1,285
－
934
76
3,950
13,927
1,603
194
1,797
12,130(3) [Non-consolidated Statements of Shareholders' Equity]

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
Total capital surplus
Balance at beginning of year
Increase (decrease) during the period
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 -FY2015(From April 1, 2015
to March 31, 2016)(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)84,39784,397－84,397－84,397

635

635

－
635

－
635

635

635

－
635

－
635

2,678

3,215

537
537
3,215

407
407
3,622

16

16

－
16

－
16

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
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
Net increase (decrease) during the period
Balance at end of year
Total earned surplus
Balance at beginning of year
Increase (decrease) during the period
Dividends of surplus
Net income
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 -FY2015(From April 1, 2015
to March 31, 2016)(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)

98

105

7
7
105

－
－
105

66,73572,4355,700
5,700
72,4353,400
3,400
75,835

8,278

6,363

(5,371)
9,700
(537)
(7)
(5,700)(1,914)
6,363(4,073)
12,130(407)

77,805

82,135(5,371)
9,700
4,329
82,135(4,073)
12,1308,056
90,192(1,686)(1,475)

(3)
215
211
(1,475)(5,001)
233(4,767)(6,243)(3,400)4,249
10,613

Total Shareholders' equity
Balance at beginning of year
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 assts
Balance at beginning of year
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 -FY2015(From April 1, 2015
to March 31, 2016)(Millions of yen)
FY2016(From April 1, 2016
to March 31, 2017)

161,152

165,693(5,371)
9,700
(3)
215
4,541
165,693(4,073)
12,130(5,001)
233
3,288
168,982(3,608)(4,595)

(986)

4,733

(986)
(4,595)

4,733
138(3,608)(4,595)

(986)

4,733

(986)
(4,595)

4,733
138

157,543

161,098(5,371)
9,700
(3)
215

(4,073)
12,130(5,001)
233

(986)

4,733

3,554
161,098

8,022
169,121