Summary Report of Consolidated Financial Results
For the Nine Months Period ended December 31, 2013
February 12, 2014stCompany name: NIPRO CORPORATION
TSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko 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, 2014
Payment date of cash dividends: Supplemental material on quarterly reporting: No
Presentation on quarterly results: No(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Nine Months ended December 31, 2013 (From April 1, 2013 to December 31, 2013)(1) Consolidated Results of Operations(Note: % of change from the same period a year ago)
Net Sales
Operating Income
Ordinary Income
Net Income
9 months ended December 31, 2013
9 months ended December 31, 2012
Note: Comprehensive income
yen (-%)

Millions of yen%

Millions of yen

222,619
181,125

22.9
13.5

10,295
9,796

%

5.1
(27.5)

9 months ended December 31, 2013: 25,724 million yen (-%)

9 months ended December 31, 2013
9 months ended December 31, 2012

Earnings per share
Yen
28.18
60.91

Millions of yen%

Millions of yen

11,91011,457

4.0
18.4

4,493
10,388%(56.7)
345.5

9 months ended December 31, 2012: 739 million

Diluted Earnings per share
Yen
25.27
54.95

(2) Consolidated Financial Position
Total Assets
Millions of yen
610,128
579,302

Net Assets
Millions of yen
132,515
128,763

9 months ended December 31, 2013
Year ended March 31, 2013
Note: Equity 9 months ended December 31, 2013: 122,400 million yen

2.

Equity Ratio
%
20.1
20.7

Year ended March 31, 2013: 119,973 million yen

Dividends

Year ended March 31, 2013
Year ending March 31, 2014
Year ending March 31, 2014
(Forecast)First-quarter
Yen-

Annual Dividends per Year
Year-end Dividends
Second-quarter
Third-quarter
Yen
Yen
Yen
12.00
15.50
16.00
-

16.00

Annual Dividends

Yen
27.50
32.00

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, 2014 (From April 1, 2013 to March 31, 2014)(Note: The % displays in the line of year ending March 31, 2014 show increase/decrease ratio against the year ended March
31, 2013)
OperatingEarnings
Net Sales
Ordinary Income
Net Income
Incomeper Share
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
Year ending March 31, 2014
295,000 22.4
15,60037.2
14,000(2.5)
6,300(38.4)
38.45
Note: Revisions to the forecast of consolidated financial results in the current quarter: No

*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) 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[2] Changes other than [1][3] Change in accounting estimate[4] Restatement

: No
: No
: No
: No

(4) Issued Shares (Common stock)[1] Number of issued shares at end of the period (including treasury stock):
9 months ended December 31, 2013
: 171,459,479 sharesYear ended March 31, 2013
: 171,459,479 shares[2] Number of treasury stock at end of the period:
9 months ended December 31, 2013
: 20,742,805 sharesYear ended March 31, 2013:
914,107 shares[3] Average number of shares during the period:
9 months ended December 31, 2013
: 159,442,744 shares
9 months ended December 31, 2012
: 170,545,818 shares*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 and may
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-Month Period Ended December 31, 2013, (3) Commentary on
Forward-Looking Statements Including Forecast of Consolidated Financial Results” in the attachment.

Table of Contents

1.

2.

3.

Qualitative Information for the Nine-Months Period ended December 31, 20132(1) Commentary on Business Results

2(2) Analysis Concerning Financial Position

3(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results

4

Summary (Other) Information

4(1) Changes in Significant Consolidated Subsidiaries

4(2) Accounting Treatments Simplified or Unique for Preparation

4(3) Changes in Accounting Policies and Accounting Estimate and Restatement

4

Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets

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

7(3)

Quarterly Consolidated Statements of Income

7

Quarterly Consolidated Statements of Comprehensive Income

7

Notes regarding Consolidated Financial Statement

8

Notes regarding going concern

8Notes regarding significant changes in the amount of shareholders’ equity

8

Segment Information

8-1-

1. Qualitative Information for the Nine-Month Period Ended December 31, 2013
(1) Commentary on Business Results
During the current quarter period under review, the global economy showed steady growth and generally remained inslow recovery though the depressed market is still ongoing in Europe and the tapering of the monetary easing is a concern
for American economy.
The Japanese economy, on the other hand, has been back on the recovery path with correcting the yen appreciation
and rising stock prices thanks to the policy effect such as monetary easing and economic policy. The overall management
environment, however, remained in an unclear situation concerning the increase of consumption tax and boost in price ofimported materials.
Under such circumstances, the Nipro Group has worked to improve operating results through its continued efforts to
expand sales and reduce costs.
As a result, consolidated sales for the nine-month period ended December 31, 2013 increased by 22.9% from the same
period of the previous year to 222,619 million yen. As for the profit, consolidated operating income increased by 5.1% fromthe same period of the previous year to 10,295 million yen and consolidated ordinary income increased by 4.0% from thesame period of the previous year to 11,910 million yen. Consolidated net income, however, decreased by 56.7% from thesame period of the previous year to 4,493 million yen due to a decrease in extraordinary income and an increase in
extraordinary loss.
The overview of the results for the current quarter period under review by business segment is as follows.
Effective from the first quarter period ended June 30, 2013, the pharmaceutical product sales unit of Nipro Pharma
Corporation has been integrated into the Company’s Domestic Division. In accordance with this change, the sales unit of
Nipro Pharma Corporation, which had previously been categorized into the Pharmaceutical-Related segment, isreclassified to the Medical-Related segment. The year-on year comparison, however, is not available for the current
quarter period under review, because it is difficult to compare between figures for the segments before and after thereclassification.

(i)

Medical-Related BusinessLooking at the domestic market, sales and profits for the Medical Sales Division from the “HeartMate II (implantableventricular assisting device),” launched in April, and the existing cardiovascular (CVS) products such as “extracorporeal
ventricular assist devices” increased significantly. Sales of dialysis machine, dialysis products such as HDF filter anddialysis pharmaceuticals also grew greatly thanks to prevalence of on-line HDF treatment.
In addition, sales were also strong in the fields such as injection-transfusion products, enteral-alimentation products,
testing products and vascular products.
Overseas sales, on the other hand, were robust because export profitability improved significantly thanks to thedepreciation of the yen against the US dollar and Euro in addition to the strengthening of the sales of dialysis products andproducts manufactured in new overseas plants during the year. Moreover, sales increased significantly from the same
period of the previous year owing to our promotion of local production for local consumption by utilizing local plants anddirect sales of high quality general supplies such as injection products through our local sales subsidiaries as a part ofregional contribution. We will continue to strive for expanding our brand share, while promoting community-based sales
activities.
As a result, net sales of this business were 180,448 million yen.

(ii)

Pharmaceutical-Related Business

The Pharmaceutical-Related Business is roughly classified into two divisions: the Generic Drugs Division, providing
stable supply of high quality and low cost drugs, and the Contracted Manufacturing Division, offering high value-added
products to meet customer needs for various types of drugs.

-2-The market for the Generic Drugs Division is expected to expand further due in part to a government policy to promote
generic drugs; manufactures of original drugs running sideline businesses and foreign generic manufactures haveemerged, making the competitive environment of the domestic market severer.
Under such circumstances, we have worked to expand our market shares of drugs for oral or external use throughcooperation with drug wholesalers and our medical device division, while strengthening the sales promotion to prescribing
hospitals and dispensing pharmacies. In the market for large hospitals, at the same time, we have enhanced information
provision activities of products such as injections. As a result, sales of this division increased steadily.
The Contracted Manufacturing Division, on the other hand, have promoted diligent marketing activities throughproviding various services such as contracted development and support for value adding initiatives, in addition topromoting conventional contracted manufacturing. During the current quarter period under review, sales of this division
increased from the same period of the previous year because we started shipping biopharmaceuticals and major genericdrugs. Furthermore, we have worked to expand contracted manufacturing through joint development with generic drug
sales division and new drug development division of domestic and foreign major pharmaceutical manufactures.
Sales of pharmaceutical containers, medical-preparation- and administration-related devices were strong because wehave made efforts to provide containers and systems suitable for each pharmaceutical product, focusing on various needs
arising from the medical front, such as small volume bags for antimicrobial agents or osteoporosis drugs, materials forpre-filled syringes, etc., on top of rubber stoppers for pharmaceutical and vaccine use and containers for kit products.
These containers and systems were developed by the Group or through joint development with pharmaceuticalmanufactures based on our original processing technologies for plastics, rubbers, and metals. Furthermore, under thegovernment’s policy to curb medical expenses, we have continued to work together with domestic and foreign
pharmaceutical manufactures in enhancing comprehensive lifecycle management of pharmaceutical products, focusing
on the development of combination products, self-injection systems, and dosage form modification in the future.
As a result, net sales of this business were 38,415 million yen.

(iii) Glass-Related Business
Sales of tube glass for ampoules showed fine growth compared to the same period of the previous year thanks to stableorders from domestic glass-processing companies enjoyed during the current quarter period under review, although
downward trend in domestic demand continued. Sales of tube glass for vials also increased from the same period of theprevious year because sales in the domestic market grew steadily thanks to an increase in orders for vials for flu vaccines.
In addition, sales of glass containers for pharmaceutical increased from the same period of the previous year by adding
the domestic sales of imported products.
Among other glass-related products, sales of thermos bottles decreased from the same period of the previous year due
to a decline in export and weak domestic demand. Regarding glass for lighting purpose, demand for automotive electric
lamp products increased on the back of strong trends in the auto industry, sales of tube glass for lamp increased
compared to the same period of the previous year. Thus, sales of tube glass for electric lamps increased as well from thesame period of the previous year, and overall sales of glass for lighting purpose increased from the same period of theprevious year
As a result, net sales of this business were 3,577 million yen.

(iv) Other BusinessAmong other business, sales from the real-estate rental business were 178 million yen.

(2) Analysis Concerning Financial Position
Analysis Concerning the Conditions of Assets, Liabilities and Net Assets
Total assets increased by 30,826 million yen from the end of the previous year to 610,128 million yen. Current assets-3-increased by 4,931 million yen primarily due to an increase of 16,109 million yen in notes and accounts receivable-trade,and noncurrent assets increased by 25,895 million yen primarily due to an increase of 11,609 million yen in investment
securities.
Total liabilities increased by 27,074 million yen from the end of the previous year to 477,613 million yen. Current
liabilities increased by 37,406 million yen primarily due to an increase of 25,140 million yen in short-term loans payable,
and noncurrent liabilities decreased by 10,331 million yen primarily due to a decrease of 6,040 million yen in long-termloans payable.
Total net assets increased by 3,751 million yen from the end of the previous year to 132,515 million yen. Shareholders’equity decreased by 17,703 million yen primarily due to purchase of treasury stock and accumulated other comprehensive
income increased by 20,130 million yen.
.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
Concerning the global economy in the future, an uncertain situation is getting severe in which there is concern that the
tapering of quantitative easing in US causes turbulent stock price and intensified fluctuation of exchange. As to theJapanese economy, an increase in resource prices associated with depreciation of the yen is of concern, and an increasein personnel costs put pressure on companies. Thus, the overall management environment is expected to remain in aharsh condition.
Even under such circumstances, the Nipro Group will work to improve profits through its continued efforts to expand
sales and reduce production costs.
At this moment, we have not made any revision to the forecast of consolidated financial results for the year ending
March 31, 2014, which was announced on November 12, 2013.

2. Summary (Other) Information(1) Changes in Significant Consolidated Subsidiaries
N/A(2) Accounting Treatments Simplified or Unique for Preparation
N/A(3) Changes in Accounting Policies and Accounting Estimate and Restatement
N/A

-4-

3. Consolidated Financial Statements(1) [ Quarterly Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2013
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-5-

As of
December 31, 2013

106,000
83,66553,89910,48017,275
5,375
11,741(463)
287,974

86,323
99,77457,54911,801
19,5305,515
13,685(1,274)292,905

138,547(69,911)
68,636
170,522(117,991)
52,53022,1733,203(2,029)1,174
23,78633,113(26,712)6,400
174,702

153,163(75,061)
78,101
184,388(130,041)
54,34722,5662,359(1,399)959
19,15135,757(28,231)7,526
182,653

22,740567
10,95834,26528,752490
12,20741,44963,141
8,805
13,767(3,353)82,360291,328
579,30274,750
4,628
16,922(3,181)
93,119317,223
610,128

(Millions of yen)
As ofMarch 31, 2013
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued directors' bonuses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for loss on business liquidation
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
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, 201340,878127,238
10,000
1,277
1,011
8,286
316
4,266
2,810
70
1,954
3,734
11,912
213,758

44,639152,379
10,000
4,131
988
7,262
－
6,623
3,564
346
1,954
3,836
15,436251,164

47,14743,287

14,90014,895

164,906
2,040
2,212
2,854
742
218
1,757
236,780
450,539

158,865
1,544
2,279
3,172
428
218
1,756
226,448477,613

84,397636
54,788(865)
138,957

84,397635
54,178(17,957)
121,254(12,547)(6,436)(18,983)
8,789
128,763579,302(3,489)4,636
1,146
10,114
132,515
610,128

(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement of Comprehensive Income]Quarterly Consolidated Statements of Income(Amount: million yen)
FY2012 first nine months(From April 1, 2012
to December 31, 2012)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on sales of investment securities
Compensation income
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Settlement package
Loss on reduction of noncurrent assets
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

FY2013 first nine months(From April 1, 2013
to December 31, 2013)

181,125
131,154
49,97140,175
9,796

222,619
156,725
65,89355,598
10,295

618
1,744
1,433
683
4,480

579
1,866
2,037
1,178
5,662

2,553
38
228
2,819
11,457

2,926
－
1,121
4,047
11,910

35
40
4,159
－
91
4,326

209
544
1,263
742
361
3,120

152
1
119
29
153
456
15,327
4,391
247
4,638
10,688299
10,388

215
1
－
530
258
1,006
14,024
9,640
(437)
9,203
4,821
328
4,493

Qarterly Consolidated Statements of Comprehensive Income(Amount: million yen)
FY2012 first nine months(From April 1, 2012
to December 31, 2012)
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 owners of the parent
Comprehensive income attributable to minority interests-7-

FY2013 first nine months(From April 1, 2013
to December 31, 2013)

10,688

4,821(7,977)(1,971)(9,949)
739
664
74

9,057
11,84520,902
25,724
24,6231,100

(3)Notes Regarding Consolidated Financial Statement(Notes regarding going concern)
N/A(Notes regarding significant changes in the amount of shareholders’ equity)
Acquisition and Tender Offer of Treasury Stocks
Based on the Board of Directors meeting dated May 14, 2013, the Company acquired treasury stocks, by meansof tender offer, pursuant to the provisions of Article 156, Paragraph 1 of the Companies Act (Law No. 86 of 2005, as
amended, “the Act”), applied by replacing certain terms provided pursuant to Article 165, Paragraph 3 of the Act,and the provisions of the Company’s Articles of Incorporation. The Company purchased 19,834 thousand shares oftreasury stock (total acquisition value is 17,096 million yen) on July 4, 2013. As a result, treasury stock in the current
quarter period under review is 17,957 million yen (total number of share is 20,742 thousand shares).

(Segment Information)Ⅰ

FY2012 (From April 1, 2012 to December 31, 2012)

1.

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

PharmaceuticalRelated

GlassRelated

Total

Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
Statements ofIncome(Note.3)

Net sales(1)Sales to third parties

127,384

50,1493,415

180,949

176

181,125－

181,125(2)Inter-segment sales
and transfers

983

5,208

371

6,562

33

6,596

(6,596)－

Total

128,367

55,358

3,786

187,512

210

187,722(6,596)

181,125

Segment profit

10,9503,511

461

14,923165

15,088(5,292)

9,796(Notes)
1.
2.

3.
2.

“Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
Adjustment for the segment profit of (5,292) million yen includes elimination of inter-segment transaction of 278
million yen and corporate cost of (5,571) million yen. Corporate cost consisted primarily of general andadministrative expenses and research and development cost which do not belong to the reporting segment.
Segment profit is adjusted to the operating income on the consolidated statements of income.

Information about Impairment Loss on Fixed Assets and Goodwill by Reportable Operating Segment
N/A

-8-

Ⅱ

FY2013 (From April 1, 2013 to December 31, 2013)

1.

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

PharmaceuticalRelated

GlassRelated

Total

Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
Statements ofIncome(Note.3)

Net sales(1)Sales to third parties

180,448

38,415

3,577

222,441

178

222,619－

222,619(2)Inter-segment sales
and transfers

1,023

5,720

437

7,181

26

7,208

(7,208)－

Total

181,471

44,136

4,014

229,623204

229,827(7,208)

222,619

Segment profit

12,522

6,202

414

19,139162

19,302(9,006)

10,295(Notes)1.
2.

3.

“Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
Adjustment for the segment profit of (9,006) million yen includes elimination of inter-segment transaction of(1,374) million yen and corporate cost of (7,632) million yen. Corporate cost consisted primarily of general andadministrative expenses and research and development cost which do not belong to the reporting segment.
Segment profit is adjusted to the operating income on the consolidated statements of income.

2. Changes in Reportable Segments(1) Effective from the first quarter period ended June 30,2013, the pharmaceutical product sales unit of Nipro
Pharma Corporation has been integrated into the Company’s Domestic Division so that we can enhance ourmanagement capability through close coordination between the three divisions: the Medical Devices Division, thePharmaceutical Products Division, and the Glass and Materials Division. In accordance with this change, the sales
unit, which had previously been categorized into the Pharmaceutical-Related segment, is reclassified to theMedical-Related segment.
The segment information for the third quarter period ended December 31, 2012 after reclassification, except forsales to external customers, is not available to the public, because accurately and retrospectively extracting datafor cost of sales and selling, general and administrative expenses is practically difficult. In addition, the segment
information for the current quarter period under review based on the segments before the reclassification is notavailable to the public either, because it is practically difficult to obtain necessary information to prepare it.
Sales to the external customers for the third quarter period ended December 31, 2012, if prepared based on thesegments before the reclassification, would have been 143,866 million yen for the Medical-Related segment and
33,667 million yen for the Pharmaceutical-Related segment.
(2) Effective from the first quarter period ended June 30, 2013, Chengdu Pingyuan Nipro Pharmaceutical Packaging
Co., Ltd., Jilin Nipro Jiaheng Pharmaceutical Packing Co., Ltd. and Anyang Nipro Changda Pharmaceutical
Packaging Co., Ltd., which had previously been categorized into the Glass-Related segment, are reclassified to
the Medical-Related segment, as a result of review and re-examination as part of our international management
strategy.
The segment information for the third quarter period ended December 31, 2012 is prepared based on thereportable segment after the reclassification.
3. Information on Impairment Loss on Fixed Assets and on Goodwill by Reportable Segment(Material Change in the Amount of Goodwill)In the Medical-Related segment, Nichihos Co., Ltd. and its 10 subsidiary companies have been included in the scope of
consolidation as a result of acquition of their shares. As a result, unamortized balance of goodwill increased 6,705 million
yen from the end of the previous period.

-9-