Consolidated Financial Statements
For the year ended March 31, 2008

May 19, 2008
Stock Exchange
listed:URL:

Company name: NIPRO CORPORATION
Code No:
Representative:

8086
Minoru Sano, President and Representative Director
Akihiko Yamabe, Director, General Manager ofContact:
Accounting and Corporative Planning Division
Date of the general shareholder’s meeting to be held: June 26, 2008
Scheduled date of the annual securities report filing: June 26, 2008
Scheduled date to commence payment of dividends: June 27, 2008

Tokyo and Osaka
http://www.nipro.co.jp/

TEL(06) 6372-2331

1. Consolidated Results for the Year ended March 31, 2008 (From April 1, 2007 to March 31, 2008)(1) Consolidated Results of Operations(Note: Amounts are truncated to 1 million yen)
Net Sales
Operating Income
Recurring Income
Net Income
Millions of yen

172,113
184,362

Year ended March 31, 2008
Year ended March 31, 2007

Note:

Millions of yen%

Millions of yen

13,677
13,053

4.8
5.9

9,669
11,355%

Millions of yen(14.8)
(7.1)

4,454
8,555

%

(47.9)
89.6

Yen

DilutedEarnings
per share
Yen

Ratio of Net Income
to Shareholders’Equity%Ratio of Recurringincome to Total
Assets%Ratio of Operating
Income to Net
Sales
%

70.17
134.71

-

3.7
7.2

2.8
3.4

7.9
7.1

Earnings
per Share
Year ended March 31, 2008
Year ended March 31, 2007

%

(6.6)
(10.9)

Equity in profit (loss) of affiliate Year ended March 31, 2008:

15 million yen

Year ended March 31, 2007:(791) million yen(2) Consolidated Financial Position
Total Assets

Shareholders’ equity:

Millions of yen

349,302336,659

119,544
127,020

Year ended March 31, 2008:

Net Assets per
Share

Equity Ratio

Millions of yen
Year ended March 31, 2008
Year ended March 31, 2007
Note:

Net Assets

%

Yen

33.8
37.3

1,861.79
1,979.21

118,155 million yen Year ended March 31, 2007:

125,651 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

9,675
14,488(30,072)(2,924)

22,267(15,654)

47,656
46,109Year ended March 31, 2008
Year ended March 31, 2007

Cash and cash
equivalents

2. Dividends
Annual dividends per share
Interimdividends
Yen
Year ended March 31, 2007
Year ended March 31, 2008
Year ending March 31, 2009
(Projected)

Year-end
dividends
Yen

Annualdividends
Yen

43.00
28.00

37.00
9.50

80.00
37.50

21.00

28.00

49.00

Annual totalof dividends

Pay-out
ratio(Consolidated)%

Millions of yen

5,079
2,380

Ratio of dividends
to Net Assets(Consolidated)

%

59.4
53.4

4.3
2.0

51.0

3. Projected Consolidated Financial Results for the Year ending March 31, 2009 (From April 1, 2008 to March

31, 2009)
Operating
IncomeNet Sales
Millionsof yen%Millionsof yenSix months ending Sept. 30, 2008

Recurring
Income%Millionsof yenEarnings
per Share

Net Income%

Millionsof yen%Yen88,4004.9
5,800 (22.0)
4,900 (25.0)
2,700 (18.9)
42.54
184,000
6.9
12,800(6.4)
11,200
15.8
6,100
37.0
96.10
Note: The % displays in the line of six months ending Sept. 30, 2008 show increase/decrease ratio against the six
months ended Sept.30, 2007. The % displays in the line of Year ending March 31, 2009 show increase/decrease ratio
against the year ended March 31, 2008
Year ending March 31, 2009-1-

4. Others(1) Change in significant subsidiaries during the year ended March 31, 2008(Resulting in a change in scope of
consolidation): Yes
Addition: 1 (Saitama Daiichi Pharmaceutical Co., Ltd.)
Removal:0(Note) Please see page 6. “Corporate group” for further details.
(2) Changes in accounting principles, procedures or presentation related to the preparation of consolidated financial
statements (i.e., changes in the basis of significant accounting policies)
1) Changes due to adoption of new accounting standards: Yes
2) Changes other than those included in 1) above: None
(Note) Please see page 18 “Change in significant matter of basis of preparation for consolidated financial
statements” for further details.
(3) Total number of common shares issued
1) Total number of common shares issued (Including treasury stock):
Year ended March 31, 2008: 63,878,505 sharesYear ended March 31, 2007: 63,878,505 shares2) Total number of shares in treasury:
Year ended March 31, 2008: 415,037 sharesYear ended March 31, 2007: 393,067 shares(Note) Please see page 29 “Per share information” to confirm the share numbers to be basis of calculation of
Earning per share (Consolidated).

(Reference) Overview of Non-consolidated financial results
1. Results for the year ended March 31, 2008 (From April 1, 2007 to March 31, 2008)(Note: % shows increase/decrease ratio against the previous years)(1) Results of Operations
Net Sales
Operating Income
Recurring Income
Year ended March 31, 2008
Year ended March 31, 2007

Millions of yen%

Millions of yen%

Millions of yen%

135,035
127,407

6.0
8.9

12,273
10,696

14.7
1.3

8,618
11,031(21.9)(4.0)

Earnings
per Share

Net Income
Year ended March 31, 2008
Year ended March 31, 2007

Diluted Earnings per share

Millions of yen

%

Yen

Yen

4,848
10,420(53.5)
110.0

76.39
164.08-(2) Financial Position
Total Assets
Year ended March 31, 2008
Year ended March 31, 2007
Note:

Shareholders’ equity:

Net Assets

Millions of yen

Millions of yen

309,863306,347

124,172
133,768

Year ended March 31, 2008:

Net Assets per
Share

Equity Ratio
%

Yen

40.1
43.7

1,956.60
2,107.07

124,172 million yen Year ended March 31, 2007:

133,768 million yen

2. Projections for the Results of the Year ending March 31, 2009 (From April 1, 2008 to March 31, 2009)
Operating
IncomeNet Sales
Millions ofyen%Millionsof yenRecurring
Income%Millionsof yenEarnings
per
Share

Net Income%

Millionsof yen%Six months ending Sept. 30, 2008
Year ending March 31, 2009

Yen

65,500(2.5)
4,800 (26.2)
4,500 (27.5)
2,700 (24.5)
42.54
136,000
0.7
11,300(7.9)
10,900
26.5
6,350
31.0
100.04
Note: The % displays in the line of six months ending Sept. 30, 2008 show increase/decrease ratio against the six
months ended Sept.30, 2007. The % displays in the line of Year ending March 31, 2009 show increase/decrease ratio
against the year ended March 31, 2008

*Disclaimer regarding projection information including appropriate use of forecasted financial results, and other special notes
The projection figures shown above are based on information that was available at the time of preparation and may containcertain uncertainties. Actual performance and other factors may differ from these projections due to changes in circumstancesand other developments. More information concerning these forecasts can be found in section 1. Business results on page 3 in
the attachments.

-2-

1. Business Results(1) Analysis concerning business results
1) Business results for the period under review and the results by segments
Japanese economy for the period under review appeared to be gradually declining due to sudden
rise in oil and raw material prices and affection from strong yen rate in fear of the underperforming
economy in the United States.
Meanwhile, a dramatic change has happened in the medical field having developed regenerative
medicine and cell therapy to be very severe circumstance for our operation.
Under such circumstance, our group has promoted to develop innovative medical equipment in thefields of artificial organs and regenerative medicine as well as made effort to injection drug and oral
drug business to establish a worldwide leading brand and be a true global enterprise.
As a result, the consolidated net sales for the period under review was 172,113 million yen,decreased 12,249 million yen from the previous period mainly because of discontinuation of store
business which had 30,973 million yen of sales in the previous period.
Operating income increased 4.8% to 13,677 million yen from the previous period, however,recurring income decreased 14.8% to 9,669 million yen from the previous period, due to accrual offoreign exchange loss by dramatic progression of strong yen rate. Accordingly, net income
decreased 47.9% to 4,454 million yen from the previous period, having also the decreases ofextraordinary profit.
The results by segments were as follows:a. Medical equipment division
In the domestic business, its environment remained severe due to the price discounts for intensive
sales competition with other competitors caused by the performance-based classification of
dialyzers, downward pressures on medical costs in medical institutions and promotion of jointpurchase for consumables in the market.
Under such circumstances, we sought to enhance the efficiency of sales activities, increase thesales forces, and made efforts to develop and market new products in the fields of dialysis,treatment on circulatory organs, injection and infusion, and examination, as well as to promote
expansion of the business by means of product offerings in the systematized package and to
expand both our market shares and sales.
In the international business, although we were affected by fluctuation by foreign exchange due tothe dramatic progression of strong yen rate and weak U.S. dollars rate, our sales marked a good
growth. Especially, sales of dialyzers, our main products in the dialysis-related-products, showed
good results in both of Nipro branded products and OEM branded products, and sales of dialysis
machine highly increased by enriching models and upgrading functions.
After the acquisition of oxygenator business in the previous period, we started to sell Nipro branded
products. We, also, showed a firm growth in the fields of diabetes-related-products which market iscontinuously expanding, though price competition is being intensified more and more.
As a result, net sales of this division increased by 14.2% from the previous period to 111,084
million yen.
b. Pharmaceutical division
In the Pharmaceutical division, the environment of market also remained very severe, due to thegovernmental measures extremely hard to suppress medicine costs by the reform of medical
administration against augmentation of the domestic medical cost for advanced age persons, andthe intensive price competitions against the product of competitors.
Under such severe circumstances, we strove to increase sales of powdered dialysate solutions, kit
product of substitution fluid for hemofiltration and hemodiafiltration and pre-filled syringe kits. We
also exerted ourselves to expand sales of “liquid-and-powder” double-bag kits and injectables inplastic-ampoules, which resulted a firm growth.
As a result, net sales of this division increased 15.7% to 48,753 million yen.
c.

Glass & Materials division
In the filed of glass for pharmaceutical purposes, sales of glass tubes for ampoule decreased dueto the impact from the change of container forms, but then sales of glass for tube bottle resulted ingood order due to the steady sales of the products for pharmaceuticals, make-up, and others for
cartridge and pre-filled syringe.
In the field of other glass & materials products, good sales in export of glass for vacuum bottle
mainly to middle east area covered the drop of domestic demand, however, sales of glass forlighting purpose, especially the related materials for backlight, largely decreased for application to
the requirements by makers of Liquid Cristal Display panel for drastic cost reduction. The materials
other than glass showed little growth generally due to the underperforming consumers trend, in spiteof strenuous efforts in health-food-related products of Ashitaba(Angelica keiskei), and so on.
-3-As a result, net sales of this division decreased 11.5% to 11,437 million yen.
d. Other division
Net sales of this division, consisting mainly of sales of machine for manufacture of medical
equipment and real estate rentals, decreased 17.7% to 837 million yen.
2) Prospects for the Year Ending March 31, 2009 and projections by segments
The business environment is anticipated to remain severer and more unpredictable.
Under the conditions, we will strive to develop new products, promote reinforcement of production
capacity and sales capability and improve our business performance.
For the year ending March 31, 2009, we project the consolidated net sales of 184,000 million yen(to increase 6.9% compared with the period under review), operating income of 12,800 million yen(to decrease 6.4% compared with the period under review), recurring income of 11,200 million yen(to increase 15.8% compared with the period under review), and net income of 6,100 million yen (toincrease 37.0% compared with the period under review), under the projected exchange rate of 100
yen per U.S. dollars
Projections on net sales by segments are as follows:
Medical Equipment division: 117,000 million yen(to increase 5.3% compared with the period under review),
Pharmaceutical division:
55,000 million yen(to increase 12.8% compared with the period under review)
Glass & Materials division: 11,300 million yen(to decrease 1.2% compared with the period under review)
Other division:
700 million yen(to decrease 16.4% compared with the period under review)(2) Analysis concerning financial position (consolidated)
1) Analysis concerning the conditions of assets, liabilities, net assets and cash flows
Total assets increased 12,642 million yen from the end of the previous period to 349,302 million yen.
Current assets increased 15,513 million yen to 162,746 million yen, and fixed assets decreased 2,870
million yen to 186,555 million yen.
Main reason for the increase in current assets was that accounts receivable and inventories
increased due to increase of sales, and main reason for the decrease in fixed assets was thatinvestment securities decreased due to the underperforming stock exchange market.
Total liabilities increased 20,119 million yen to 229,758 million yen. Current liabilities increased
4,730 million yen to 108,835 million yen, and fixed liabilities increased 15,388 million yen to 120,923
million yen.
Main reason for the increase in current liabilities was that current portion of bonds increased, andmain reason for the increase in fixed liabilities was that long-term borrowings increased.
Net assets decreased 7,476 million yen to 119,544 million yen, mainly due to decrease of valuationdifferences of other securities.
The ending balance of cash and cash equivalents in the period under review increased 1,547 million
yen to 47,656 million yen.
The conditions and main factors of each cash flow during the period under review were as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 9,675 million yen, decreased 33.2% from the previous
period.
The main accounts of cash inflow were net income before adjustment of taxes, 8,260 million yen,depreciation and amortization, 15,054 million yen. The main accounts of cash outflow were increase of
inventories, 6,650 million yen and payment of corporate income tax, 10,137 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 30,072 million yen.
The main account of cash outflow was payments for acquisition of fixed assets, 25,180 million yen.
(Cash flows from financing activities)
Net cash provided by investing activities was 22,267 million yen.
The main accounts of cash inflow were proceeds from long-term borrowings, 33,775 million yen,and proceeds from issuance of bonds, 19,880 million yen. The main accounts of cash outflow wererepayment of long-term borrowings, 24,325 million yen, and payment for dividends, 4,120 million yen.

-4-2) Trend of the cash flow indicators
Year ended
March 31, 2005

The 53rd period
Year ended
March 31, 2006

The 54th period
Year ended
March 31, 2007

The 55th period
Year ended
March 31, 2008

32.9

33.2

37.3

33.8

38.3

33.9

43.4

31.6

7.1
10.3

21.1
4.6

8.3
8.5

15.6
5.1

The 52nd period

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

Note: Shareholders’ equity ratio = Shareholders’ equity / Total Assets
Ratio of market value of shareholders’ equity = Aggregate market value of the outstanding
shares / 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 shares 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 statements of cash flows. Interest-bearing liabilities represent all liabilities on the
consolidated balance sheets for which interest is payable. The amount of interest payments istaken from the payments of interests on the consolidated statements of cash flows.
(3) Basic Policies on Distribution of Profits and Dividends for years ended March 31, 2008 and ending
March 31, 2009.
As we position profit return in the important administrative measures, our policy is that 50% of the
non-consolidated net income is to be distributed to shareholders. Orienting a rational system for
distribution of profits linked to operation results, not only bonuses of directors and statutory auditors but
also employees’ bonuses are determined based on the business performance of the Company.
Retained earnings are to be invested in the sales and production facilities as well as in research anddevelopment, in view of enlarging the firm management basis and long-term business developments, so
as to ensure stable profits and continuous growth.
Annual dividends are calculated to be 37.50 yen per share. As we already paid interim dividends of
28.00 yen per share, year-end dividends are to be 9.50 yen per share; this will be proposed to theCompany’s 55th ordinary general meeting of shareholders.
Dividends for year ending March 31, 2009 are expected to be made according to the above-mentioned
policy.

-5-Corporate GroupOur group consists of the Reporting Company (“the Company”), its 29 subsidiaries and 1 affiliate, and isprimarily engaged in manufacture and sale of medical equipment, pharmaceutical products and glass andmaterial products.
Positioning of each company in connection with the businesses of our group and the relation to thebusiness segments are as follows:<Medical Equipment Division>
Domestic:
The Company and Nipro Medical Industries, Ltd. manufacture medical equipment, andthe Company sells medical equipment manufactured by its foreign subsidiaries.
Overseas:
Nipro (Thailand) Corporation Ltd. (Thailand), Nipro (Shanghai) Co., Ltd. (China) and Nipro
Medical LTDA. (Brazil), and other manufacturing subsidiary purchase some of raw materials
and machinery for their production from the Company, manufacture medical equipment, andsell through the Company and its subsidiaries as well as locally on their own.
Nipro Europe N.V. (Belgium), Nipro Medical Corporation (U.S.A.), and Nipro Asia Pte. Ltd.
(Singapore) and other sales subsidiaries sell medical equipment etc. in the areas of theirlocations.
Nipro Diabetes Systems, Inc. (U.S.A.) develops and sells diabetes-related products suchas insulin pump.
<Pharmaceutical Division>
The Company, Nipro Pharma Corporation and Nipro Genepha Corporation Zensei
Pharmaceutical Industries Co., Ltd and Saitama Daiichi Pharmaceutical Co., Ltd.
manufacture and sell pharmaceutical products. Tohoku Nipro Pharmaceutical Corporation
manufactures pharmaceutical products.
Bipha Corporation, an affiliate accounted for by the equity method, is engaged in researchand development, manufacture and sale of pharmaceutical products such as blood
products.
<Glass and Materials Division>
Domestic:
The Company sells glass tubes in the Kansai area as well as manufactures and sells
other glass products.
In the Kanto area, Shinwa Shoji Co., Ltd. purchases glass tubes as raw materials, andmanufactures and sells glass products.
Overseas:
Shanghai Nissho Vacuum Flask Refill Co., Ltd. (China) sells internal glass sections of
vacuum flask and other glass products.
<Other>
The Company manufactures (purchases, in some cases) and sells machinery for
manufacture of medical equipment, etc.
The Company and Wasyu Kogyo Co., Ltd. lease real estate properties.
Nissho Insurance Services Co., Ltd. operates non-life insurance agency mainly for thegroup companies.
Sanri Kosan Co., Ltd., an other related company, is engaged in leasing of real estate
properties.
The above explanations are illustrated as follows:-6-

(Domestic)(Overseas)
Medical Equipment Division

Medical Equipment Division<Manufacture and Sale>◎Nipro (Thailand) Corporation<Manufacture>

Ltd.

◎Nipro Medical Industries, Ltd.

◎Nipro (Shanghai) Co., Ltd.
◎Nipro Medical LTDA.
And 1 other subsidiary.

Pharmaceutical Division<Manufacture and Sale><Sale>◎Nipro Europe N.V.
◎Nipro Medical Corporation◎Nipro Asia Pte. Ltd.
And 11 other subsidiaries◎Nipro Pharma Corporation◎Nipro Genepha Corporation<Manufacture and Sale>◎Zensei Pharmaceutical Industry Co., Ltd.
◎Saitama Daiichi Pharmaceutical Co.,Ltd.
◎Tohoku Nipro
Pharmaceutical Corporation<Development,
and Sale>

Manufacture□Bipha Corporation

Nipro Corporation<Manufacture><Development and Sale>◎Nipro Diabetes Systems, Inc.

Glass & Materials Division

Glass & Materials Division<Sale><Manufacture and Sale>◎Shanghai Nissho Vacuum Flask
Refill Co., Ltd.

◎Shinwa Shoji Co., Ltd.

Other

Supply of products andmerchandises<Non-life insurance agency>

Supply of raw materials○Nissho Insurance Services Co.,
Ltd.

Other transactions<Rental of real estate>○Wasyu Kogyo Co.,Ltd.

Other<Rental of real estate>△Sanri Kosan Co., Ltd.

-7-◎

Consolidated subsidiary○

Unconsolidated subsidiary□

Affiliate accounted for by theequity method△

Other related company

3. Management Policies(1) Basic Policies of Management
Since our foundation of year 1954 with concept of “technology innovation”, we have grown by pursuing
the technologies of which unique products can always solve QOL (Quality of Life) of patients andsubjects in Medical treatment sites, under philosophy in contributing to the society through corporate
activities.
As a management structure considering compatibility between “stability” and “growth” that is mostimportant for a company, we implement the “performance-linked remuneration system” that is the rule ofprofit sharing among shareholders, employees and management, and carry out active business
operations, holding the employees responsible for boosting the performance of individual businesses.
(2) Target Management Indicators
Our performance targets are to achieve to 200 billion yen of consolidated net sales, 20 billion yen ofrecurring income and 10% of return on equity (ratio of net income to shareholders’ equity) by the fiscal
year 2010.
(3) Medium- and Long-term Management Strategies
In the Medical Equipment division, we are aiming at top share of our main product, dialyzer in theworld by intensive mass production, improvement of its quality and cost reduction driven from fullself-production from the raw materials produced by self-spinning of hollow fibers. We will also strive tostrengthen the product lineup and establishment of sales bases in the field of artificial lung andcardiovascular surgery, to market in the world.
In the Pharmaceutical division, we enhance our production capacity of contract manufacturing in eachfield of injection drug, oral drugs and external application drug as well as enrich high value-added
technology of formulation for new kit drugs and drugs for Drug Delivery System (DDS) to promote thedevelopment type contract manufacturing. As for the generic medicines, we also devote efforts to quality
upgrading and cost reduction of the products to establish mass production system entering oversea
business in the view, promoting co-development or corporation with other companies.
In the Glass and Materials division, we will reinforce competitiveness by reducing manufacturing costsof each glass product based on our peerless glass processing technologies, conduct global sales
activities and strive to secure stable profit.
(4) Issues and Challenges that the Group Faces
In the domestic business of the Medical Equipment division, although the market environment would
be quite severe due to reduction of reimbursement price by the revision of pharmaceutical pricing inyear 2008, we will effort in dialysis-related products such as dialyzers, blood tubing sets, and dialysis
machines, to react to the market needs promptly, develop and market new products, improve productquality, strengthen sales capacity and increase the market share and sales more. In the field of related
products to endovascular therapy, we develop and introduce new product such as PTCA balloon
catheters, blood-clot trapping device and stent to enlarge product lineup and promote market
development and reinforcement of sales capacity to expand our share. We will also make efforts toincrease our market share of injection and infusion-related products such as infusion sets and syringes,
as well as to develop products, market and reinforce sales capacity in such as nutrition infusion related
products. As for the examination-related products, we will develop and market new products of blood
glucose monitoring device for diabetics and test reagents, and strengthen sales of blood collection tubes
for blood test and obtain market share by active marketing.
In the international business, we will continuously promote to enrich sales bases. As for our main
product, dialyzer, we will expand our sales centering newly developed products together with the related
products. Although dialyzers of synthetic membrane are mainly dominated in the market, we will effort toupgrade the performance and strengthen sales of dialyzers of tri-acetate membrane which is superior inorganism conformity and still in firm demand. In diabetes related products, we will engage indevelopment of products which are applicable for the globalizing market. We also will strive to upgrade
customer service, train the local specialists abroad and advance expansion of service centers, as well
as strengthen relationships with companies in co-operation for establishing main product group, aiming
development of package business.
In the pharmaceutical division, it is prior subject for us to line enough products in order to cope withchange of prescription form. As for injection drug, we are proactively developing the new products suchas “liquid-and-powder” double-bag kits of antibiotics, pre-filled syringes and injectables inplastic-ampoules, as well as to improve the products including prevention measures of malpractice.
-8-

In terms of oral drugs, we will increase item numbers largely and promote co-developments with othercompanies to enhance efficiency in product development and reinforcement of contract manufacturing.
We will also continuously develop pharmaceutically contrived products of new drug type, for instance,
drugs with prominent easiness to drink. In the field of external application drugs centering transdermal
therapeutic drugs, which has been newly added to our business portfolio, we will proactively proceedboth of self-development and co-development as well as reinforce contract manufacturing.
In addition, we will make efforts for early realization of pharmaceutical products in biosimilar drug ofrecombinant erythropoietin, artificial blood, and Drug Delivery System (DDS) with application ofrecombinant human serum albumin. We will endeavor to enrich product lineup by actively developing
injection drugs including kit products and oral drugs, and expand our pharmaceutical business byenlarging contract manufacturing, including research of pharmaceutical preparation, and selling routes
to enhance productivity in manufacturing factories.
In the Glass and Materials division, we will continue to ensure and innovate glass-processing
technology applying to demands by the pharmaceutical industry, developing mainly glass tubes as well
as new materials actively to expand our sales. In terms of the glass for lighting purposes, we will strive
to increase sales of glass materials for Liquid Cristal Display (LCD) backlights and glass-related
products in the expanding LCD panel market.

-9-Consolidated Balance Sheets

PeriodAccount

Previous Period(as of March. 31, 2007)
AmountRatio(ASSETS)
Current Assets
Cash on hand and in banks
Trade notes and accounts
receivable

Inventories
Deferred tax assets
Other current assets
Allowance for doubtful accounts

Fixed Assets
Tangible fixed assets
Buildings and structures
Machinery, equipment andvehiclesLand
Construction in progress

OthersIntangible fixed assets
Goodwill

OthersInvestments and other assets(Unit: Millions of yen)
Current Period
Change(as of March 31, 2008)
in amount
AmountRatio%
147,233

43.7%
162,74646.6

15,51347,93449,4691,534

50,972
40,213
3,033
5,581
(501)

53,50748,077
2,902
9,264
(473)

2,534
7,864
(131)
3,683
27

189,42656.3

186,555

53.4(2,870)104,88131.2

118,81134.0

13,93038,11345,414

7,301

31,10518,032
12,856
4,773

37,78019,412
11,220
4,983

6,674
1,380
(1,636)
210

1,902

0.6

240
1,661
82,642

3,163

0.9

1,425
1,737
24.5

64,580

1,260
1,184
76

18.5

(18,061)

Investment securities
Long-term loans receivable
Deferred tax assets
Lease deposits
Other assets

77,304
303
61
4,791
3,198

59,925
223
159
4,466
2,779

(17,378)
(79)
97
(325)
(419)

Allowance for doubtful
accounts(3,017)(2,972)

44

Total Assets

336,659- 10 -

100.0

349,302100.0

12,642

Consolidated Balance Sheets

PeriodAccount

Previous Period(as of March. 31, 2007)
AmountRatio(LIABILITIES)Current liabilities
Trade notes and accounts
payable(Unit: Millions of yen)
Current Period
Change(as of March 31, 2008)
in amount
AmountRatio%
104,10430.9%
108,835

31.2

4,730

26,54750,209
60
6,123
8,404
1,461

30,00843,23415,150
5,388
2,226
1,528

3,461
(6,974)15,090(735)(6,178)
67

230

75

(154)

1,954

1,954

-

Others

3,655
5,457

5,225
4,043

1,569
(1,414)

Fixed liabilities

105,534

Short-term borrowings
Current portion of bonds
Other payables
Accrued income taxes
Allowance for bonuses payable
Allowance for bonuses payablefor directors and corporate
auditors
Allowance for loss on clearanceof businessNotes payable for plant andequipment

Bonds

31.4

120,923

34.6

15,38831,45036,3004,850

14,00038,765
17,417

14,00056,405
9,833

17,639(7,584)

2,564

2,128

(435)

Allowance for loss on lawsuit
Other fixed liabilities

1,336

700
170
1,385

700
170
48

Total liabilities

209,639

Convertible type bonds with stockacquisition rights

Long-term borrowings
Deferred tax liabilities
Accrued pension and severance
cost
Accrued severance indemnity fordirectors and corporate auditors(Net Assets)

62.3

229,758%

65.8

20,119%

Shareholders’ Equity

97,04428.8

97,32027.9

276CapitalCapital surplus
Earned surplus
Treasury stock

28,66329,97339,148
(741)

8.5
8.9
11.6
(0.2)

28,66329,97539,476
(794)

8.2
8.6
11.3
(0.2)

2
327
(53)

28,606

8.5

20,835

5.9(7,771)

29,883

8.9

18,947

5.4(10,935)(1,276)

(0.4)

1,887

0.5

3,164

1,369

0.4

1,388

0.4

19

Total Net Assets

127,02037.7

119,54434.2(7,476)

Total Liabilities and Net Assets

336,659

100.0

349,302100.0

12,642

Valuation and translation difference
Valuation differences of othersecurities
Foreign currency translation
adjustments

Minority interests- 11 -

Consolidated Statements of Income(Unit: Millions of yen)
PeriodAccount

Previous Period

Current Period(From April 1, 2006
To March 31, 2007)(From April 1, 2007
To March 31, 2008)

AmountAmountRatio%

Changein amount

Ratio%

Net sales
Cost of goods sold184,362
132,142

100.0
71.7

172,113
123,108

100.0
71.5

(12,249)(9,033)Gross profit

52,22028.3

49,00428.5(3,215)

39,16721.2

35,32720.5(3,840)13,053

7.1

13,677

8.0

624

1,657
308
560
313
475
3,355
1,645
381

0.9

1,805
462
637
15
689
5,813
1,950
384

1.0

147
154
77
(313)
15
214
2,457
305
2

Selling, general and administrative
expenses

Operating income
Non-operating income
Interest income
Dividend income
Exchange gain
Equity in profit of affiliate
OthersNon-operating expenses
Interest expenses
Depreciation
Amortization of long-term
prepaid expense
Exchange loss
Equity in loss of affiliate
OthersRecurring income
Extraordinary gains
Gain on sale of fixed assets

Life insurance income

198
791
338
11,355
13,660
30
-

1.8

6.2
7.4

3,168
309
9,669
2,371
52
191

3.4

5.6
1.4

(198)
3,168
(791)
(29)
(1,686)(11,289)
21
191

Governmental subsidies received

661

1,859

1,197

Gain on sale of investment securities

12,706
261
8,240

268
3,780

(12,706)
6(4,460)

OthersExtraordinary losses
Loss on sale and disposal of fixed
assetsImpairment loss on fixed assets
Allowance for loss on clearance ofbusiness
Loss on investment securities
Loss on disposal of inventories
Abnormal manufacturing cost
Advanced depreciation on fixed assets

Allowance for doubtful debts

Allowance for accrued severance indemnityfor directors and corporate auditors in prior years
Others

4.5

2.2

516
1,286

671
-

155
(1,286)

1,954
268
253
246
650
2,361

138
167
1,842
6

(1,954)
(268)
(114)
(78)
1,191
(2,354)

703

640
313

640
(389)

Net income before adjustment of taxes

16,775

9.1

8,260

4.8

(8,515)

Corporate, inhabitants andenterprise taxes
Adjustment for deferred taxes

10,059(1,873)

5.5
(1.0)

3,758
36

2.2
0.0

(6,301)
1,909

33
8,555

0.0
4.6

11
4,454

0.0
2.6

(22)
(4,101)

Minority shareholders’ share in net
income of consolidated subsidiaries

Net income- 12 -

Consolidated Statement of Shareholders’ Equity
Previous period (From April 1, 2006 to March 31, 2007)
Shareholders’ equity
CapitalBalance at March 31, 2006

28,663

Capitalsurplus

EarnedsurplusTreasury
stock

Total

29,972

34,545(648)

shareholders'equity92,532

Increase (decrease) during the period

Dividend of surplus
Bonuses to directors and corporate auditors

Net income(4,096)(4,096)

(91)

(91)

8,555

8,555

Acquisition of treasury stock
Disposal of treasury stock
Increase in earned surplus due todivest of consolidated subsidiaries
Decrease in earned surplus due toaddition of consolidated subsidiaries
Increase (decrease) of the items
other than shareholders’ equity
during the period
Net increase (decrease) during theperiodBalance at March 31, 2007

1

(101)

9

10

436

436

(201)

(201)
-

-

1

4,602

(92)

4,512

28,66329,97339,148(741)

97,044

Valuation and translation differences
Valuationdifferences

Balance at March 31, 2006

(101)

Foreigncurrencytranslationof othersecurities

adjustments

25,563(5,705)

Total
valuationandtranslationdifferences

19,858

Minority
interests

1,612

Total net
assets114,003

Increase (decrease) during the period

Dividend of surplus-(4,096)-(91)

Net income

-

8,555

Acquisition of treasury stock

-

(101)

Disposal of treasury stock

-

10

-

436

-

(201)

Bonuses to directors and corporate auditors

Increase in earned surplus due todivest of consolidated subsidiaries
Decrease in earned surplus due toaddition of consolidated subsidiaries
Increase (decrease) of the items
other than shareholders’ equity
during the period

4,319

4,428

8,748

(243)

8,505

Net increase (decrease) during the period

4,319

4,428

8,748

(243)

13,017

Balance at March 31, 2007

29,883(1,276)28,606

1,369

127,020- 13 -

Consolidated Statement of Shareholders’ Equity
Current period (From April 1, 2007 to March 31, 2008)
Shareholders’ equity
CapitalBalance at March 31, 2007

28,663

Capitalsurplus

EarnedsurplusTreasurystock

29,97339,148

(741)

Total
shareholders'equity97,044

Increase (decrease) during the period

Dividend of surplus(4,126)(4,126)

Net income

4,454

4,454

Acquisition of treasury stock
Disposal of treasury stock
Increase (decrease) of the items
other than shareholders’ equity
during the period
Net increase (decrease) during theperiodBalance at March 31, 2008

2

(64)

10

13
-

-

2

327

(53)

276

28,66329,97539,476(794)

97,320

Valuation and translation differences
Valuationdifferences

Balance at March 31, 2007(64)

Foreigncurrencytranslationof othersecurities

adjustments

29,883(1,276)

Total
valuationandtranslationdifferences

28,606

Minority
interests

1,369

Total net
assets127,020

Increase (decrease) during the period

Dividend of surplus-(4,126)

Net income

-

4,454

Acquisition of treasury stock

-

(64)

Disposal of treasury stock-

13

Increase (decrease) of the items
other than shareholders’ equity
during the period
Net increase (decrease) during the period

Balance at March 31, 2008

(10,935)

3,164(7,771)

19(7,752)(10,935)

3,164(7,771)

19(7,476)

18,947

1,887

20,835

1,388

119,544- 14 -

Consolidated Statements of Cash Flows(Unit: Millions of yen)
PeriodAccount
Cash flows from operating activities
Net income before adjustment for taxes
Depreciation and amortization
Impairment loss on fixed assets
Amortization of goodwill
Equity in loss of affiliate
Allowance for doubtful debts
Allowance for loss on clearance of business

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Exchange loss (gain)
Gain on sales of shares of subsidiary company
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Bonuses to directors and corporate auditors

Other non-operating income/expenses and extraordinary gains/losses
SubtotalInterest and dividends received
Interest paid
Other revenues
Other expenditures
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Deposits in time deposits
Proceeds from matured time deposits
Payments for purchases of securities
Proceeds from sales of securities
Payments for acquisition of shares with change in scope of consolidated subsidiary
Proceeds from sales of shares with change in scope of consolidated subsidiary
Payments for acquisition of fixed assets
Proceeds from sales of fixed assets
Increase(decrease) in short-term lending
Collections of loans receivable
Expenditures for other investments
Revenues from other investments
Cash flows from investing activities

Previous Period(From April 1, 2006
To March 31, 2007)
AmountCurrent Period(From April 1, 2007
To March 31, 2008)
AmountChangein amount

16,775
12,469
1,286
129
791
2,361
1,954
(92)
(868)
1,645
(68)
(12,706)(2,186)(3,061)(1,982)
(565)
2,678
(96)
882
19,347830(1,697)1,590(262)(5,320)14,4888,260
15,054
263
(15)
(75)
(1,100)
1,950
286
2,608
(6,650)(464)
753(1,367)465
19,9701,094(1,889)1,036(398)(10,137)
9,675(8,515)2,584(1,286)133(806)(2,361)(1,954)
16
(231)
305
354
12,706
4,795(3,589)1,518
1,319(4,045)
96
(416)
622
263
(191)
(554)
(136)
(4,816)(4,812)(5,792)
7,665(2,244)24(1,220)19,372(19,911)273(1,078)59(112)
40(2,924)(2,242)
2,246(1,015)(3,125)(25,180)
187(1,029)94(40)
33(30,072)3,549(5,419)1,229(24)(1,905)(19,372)(5,269)
(85)
49
35
72
(6)
(27,148)

121(9,000)20,853(13,181)(10,060)
10
(101)
(205)
(4,090)(0)(15,654)208(3,881)
49,914
77
46,109(2,787)
33,775(24,325)
19,880
(60)
3
13
(64)
(32)
(4,120)(14)
22,267(323)
1,547
46,10947,656(2,909)9,000
12,922(11,143)
19,88010,000
3
2
36
172
(29)
(13)
37,921(531)
5,429(3,804)(77)
1,547

Cash flows from financing activities

Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial paper

Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of bonds
Payments for redemption of bonds
Proceeds from issuance of shares
Proceeds from disposal of treasury stock
Payments for acquisitions of treasury stock

Repayments of finance lease obligations
Payments for dividends
Other payments
Cash flows from financing activities

Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents

Balance of cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalents due to inclusion of new subsidiary in consolidation

Balance of cash and cash equivalents at the end of the period- 15 -

(5) Basis of Preparation for the Consolidated Financial Statements
1 ) Scope of Consolidation[1] Consolidated subsidiaries: 25
Name of representative consolidated subsidiaries.
・・・・

Nipro Medical Industries, Ltd.
Nipro Europe N.V.
Nipro Pharma Corporation
Saitama Daiichi Pharmaceutical Co., Ltd.

・ Nipro (Thailand) Corporation Ltd.
・ Nipro Medical Corporation
・ Tohoku Nipro Pharmaceutical Corporation

We have included in the scope of consolidation from the current period, Nipro Sales (Thailand)Co., Ltd due to new foundation, Nipro Biocorp S.A. and Saitama Daiichi Pharmaceutical Co., Ltd. dueto acquisition of the stocks.
[2] Unconsolidated subsidiaries: 4
The unconsolidated subsidiaries, Nissho Insurance Services Co., Ltd., Nipro Trading (Shanghai)Co., Ltd., Nipro Hospital Product, Inc. and Wasyu Kogyo Co., Ltd., are small-sized companies, whose
combined total assets, net sales, net income and earned surplus in the aggregate (averaged forrecent 5 years) are not material to the consolidated financial statements.
2 ) Application of Equity Method
Number of affiliate accounted for by the equity method: 1

Bipha Corporation

The equity method is not applied to the 4 unconsolidated subsidiaries, since they are not material
to the consolidated net income and earned surplus etc., either individually or in the aggregate.
3 ) Accounting Period of Consolidated Subsidiaries
Among the consolidated subsidiaries, accounts closing date of the foreign subsidiaries is
December 31. Consolidated financial statements as of that date are used in preparing forconsolidated financial statements, and necessary 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
Other 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 withoutmarket quotations·············Valued at cost by the weighted average method
Inventories
Valued at cost by the weighted average method[2] Method of depreciation and amortization for significant depreciable assets
Tangible fixed assets:·······Declining-balance method
Durable years and residual values are based on the same
standards as provided by the Corporate Income Tax Law.
Buildings acquired after April 1, 1998 (excluding attachedstructures), are depreciated by straight-line method.
The foreign subsidiaries use straight-line method in
accordance with the tax laws of their countries.
[3] Standards for recognition of significant allowances
Allowance for doubtful
accounts ··························· In order to cover the probable losses on collection, an allowancefor doubtful accounts is provided for the estimated amount of
uncollectible receivables. For general receivables, the amount- 16 -

of provision is based on historical write-off rates, and for the
doubtful receivables, based on the specific collectability.
Allowance for bonuses
payables ····························· In order to cover the payment of bonuses to employees, anallowance is provided for the estimated amount of bonuses to be
paid, prorated for the consolidated accounting period.
Allowance for bonuses
payables for directors
and corporate auditors········· In order to cover the payment of bonuses to directors andcorporate auditors, an allowance is provided for the estimatedamount of bonuses to be paid, prorated for the consolidated
accounting period.
Allowance for loss on
clearance of business ········ In connection with withdrawal from retail business which wesold the shares of the consolidated subsidiaries, the estimatedloss at the end of the consolidated accounting period is posted
for disposal of land, building and other properties to be soldaccordingly.
Accrued pension andseverance cost····················· An allowance is provided for employee’s pension andseverance payments based on the estimated amounts ofprojected benefit obligation and plan assets at the end of theconsolidated accounting period.
Past service liabilities are expenses mainly for five years using
the straight line method.
Actuarial difference is expensed in the following consolidated
accounting period after the year of such recognition, using thestraight-line method for five years.
Accrued severance
indemnity for directors
and corporate auditors········· An allowance is provided for severance indemnity for directors
and corporate directors based on the amounts to be paid at theend of the consolidated accounting period.
Allowance for loss on
lawsuit .................................. In order to cover the probable losses on lawsuit, an allowance
for loss is provided for the estimated amount acceptable asneeded.
[4] Standards for translation of significant assets and liabilities denominated in foreign currencies into
Japanese Yen
Monetary assets and liabilities denominated in foreign currencies are translated to Japanese
yen using the spot exchange rate of the consolidated balance sheet date, and translationdifferences are recognized as gains or losses. The assets and liabilities of foreign subsidiaries
etc. are translated to Japanese yen using the spot exchange rate of their balance sheet date,
while revenues and expenses are translated using the average rate for the period. Translationdifferences are included in foreign currency translation adjustments in the Net Assets section.
[5] Accounting method for lease transactions
Finance leases, except for those where ownership of the leased assets is deemed to betransferred to the lessee, are accounted for by the method similar to that applicable to ordinary
operating leases.
[6] Other significant basis on preparation for consolidated financial statements
Consumption taxes
Consumption taxes are excluded from revenues and expenses accounts.
5 ) Evaluation of assets and liabilities of the consolidated subsidiaries
Partial fair market value method is used for valuation of assets and liabilities of consolidated
subsidiaries.
6 ) Amortization of goodwill
Goodwill is amortized using the straight-line method for five years.
7 ) Range of cash and cash equivalent carried on the consolidated cash flow statement.
- 17 -Cash and cash equivalent carried on the cash flow statement consist of cash on hand, cash inbanks that is 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 ofprices.
(6) Change in significant matter of basis of preparation for consolidated financial statements(Change in Accounting Method)
1) Change in depreciation method of tangible fixed assets
Revised the corporate income tax law (Law for revision of a part of income tax law and related law,
published on March 30, 2007, and Government ordinance for revision of a part of the enforcement
ordinance of the corporate income tax law, published on March 30, 2007, the enforcement ordinanceno.83), we have changed the depreciation method according to the method of the revised corporate
income tax law for tangible fixed assets acquired on or after April 1, 2007, from the consolidated
accounting period. As a result, gross profit decreased 431 million yen, operating income decreased
510 million yen, and recurring income and net income before adjustment of taxes decreased 537
million yen, comparing with the computation by the previous method.
As for the effect to the segment information, please see the notes in the segment information
section.
2) Standard for recognition of accrued severance indemnity for directors and corporate auditors
Severance cost for directors and corporate auditors had been processed as expense when it waspaid. However, we have adopted, since the current consolidated accounting period, “Treatment on
audit concerning reserves based on the special taxation measures law and reserves or provisions
based on special laws” (Japan Institute Certified Public Accountants, published on April 13, 2007,
Audit, assurance practice committee report No.42) to change into the method as providing accrued
severance indemnity for directors and corporate auditors at the end of the current consolidated
accounting period, based on the internal regulation of the companies. As a result, selling, general andadministrative expenses increased 53 million yen, operating income and recurring income decreased
the same amount and net income before adjustment of taxes decreased 524 million yen, comparing
with the computation by the previous method.
As for the effect to the segment information, please see the notes in the segment information
section.
(Additional information)
Change in depreciation method for tangible fixed assets
Revised the corporate income tax law(Law for revision of a part of income tax law and related law,
published on March 30, 2007, and Government ordinance for revision of a part of the enforcement
ordinance of the corporate income tax law, published on March 30, 2007, the enforcement ordinanceno.83), we have depreciated, included in cost of goods sold and selling, general and administrative
expenses, the difference between 5% equivalent amount of acquisition cost of tangible fixed assets
and its memorandum value for 5 years from next consolidated accounting period to consolidated
accounting period when reached to 5% of its acquisition cost which was depreciated by application of
the corporate income tax before the revision since the current consolidated accounting period. As aresult, gross profit decreased 278 million yen, operating income, recurring income and net income
before adjustment of taxes decreased 319 million yen, comparing with the computation by theprevious method.
As for the effect to the segment information, please see the notes in the segment information
section.
(7) Notes to the consolidated financial statements(Notes to the Consolidated Statements of Income)(Previous period)1) Accumulated depreciation of tangible fixed assets

108,725

2) Pledged assets

16,17812,021

3) Obligations under guarantee contracts

1,093

548

- 18 -

mil.yen(Current Period)

132,145

mil.yen4) Discounted notes receivable

217

87

5) Accounts related to unconsolidated subsidiaries and affiliate companies
Investment securities (stock)

3,192

Investments other than stock23

mil.yen

3,208

mil.yen836) Accounting process for matured bill on last day of the consolidated period
Matured bill on last day is processed on traded date of bill. Accordingly, because the last day of theprevious consolidated accounting period was on holiday of financial institute, matured bill on the lastday was included in following accounts.
(Previous period)(Current Period)

Trade notes receivables

1,095

Trade notes payables

453-

Trade notes payables for plant and equipment

23-

mil. yen-mil.yen(Notes to the Consolidated Statements of Income)Research and development expenditure included in selling,
general and administrative expenses and manufacturing cost.

(Previous period)(Current period)

4,460 mil yen

5,371 mil yen(Notes to the Consolidated Statement of Shareholders’ equity)
Previous period (From April 1, 2006 to March 31, 2007)
1. Sort and total numbers of Shared issues
Sort of shares
Common stock

Number of shares
As of March 31, 2006
63,878,505

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2007
63,878,505

Increased
numbers
48,487

Decreased
numbers
5,009

Number of shares
As of March 31, 2007
393,067

2. Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2006
349,589(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.
3. Dividends(1) Amount of dividends paid
Decision

Sort of shares

June 29, 2006 at ordinary
general shareholders’ meeting
November 20, 2006 at board of
directors meeting

Common stock
Common stock

Total amount ofdividends paid

Million of yen
1,365
Million of yen
2,730

Dividends
per shares
Yen
21.50
Yen
43.00

Basis date

Effective date

March 31, 2006

June 30, 2006

September 30, 2006

December 8, 2006

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in thenext consolidated accounting period.
Decision

Sort ofsharesProceeds ofdividends

Total amount ofdividends paid

Dividends
per shares

June 27, 2007 at
ordinary
generalshareholders’ meeting

Commonstock

EarnedsurplusMillion of yen
2,348

Yen
37.00

Basis date

Effective date

March 31, 2007

June 28, 2007

Current period (From April 1, 2007 to March 31, 2008)
1. Sort and total numbers of Shared issues
Sort of shares
Common stock

Number of shares
As of March 31, 2007
63,878,505

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2008
63,878,505

Increased
numbers
27,655Decreased
numbers
5,685

Number of shares
As of March 31, 2008
415,037

2. Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2007
393,067- 19 -

(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.
3. Dividends(1) Amount of dividends paid
Decision

Sort of shares

June 27, 2007 at ordinary
general shareholders’ meeting
November 19, 2007 at board of
directors meeting

Common stock
Common stock

Total amount ofdividends paid

Million of yen
2,348
Million of yen
1,777

Dividends
per shares
Yen
37.00
Yen
28.00

Basis date

Effective date

March 31, 2007

June 28, 2007

September 30, 2007

December 10, 2007

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in thenext consolidated accounting period.
Decision

Sort ofsharesProceeds ofdividends

Total amount ofdividends paid

Dividends
per shares

June 26, 2008 at
ordinary
generalshareholders’ meeting

Commonstock

EarnedsurplusMillion of yen
602

Yen
9.50

(Related Party Transactions)
N/A(Derivative Transactions)
N/A(Stock Options)
N/A(Business combinations, etc.)
N/A- 20 -

Basis date

Effective date

March 31, 2008

June 27, 2008

(Segment information)
1. Segment information by business category(1) Previous period (From April 1, 2006 to March 31, 2007)(Millions of yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials

Store(1) Sales to third parties

97,30042,152

12,91830,973

1,017(2) Inter-segment sales
and transfers

3

-

3,445

-

Total

97,30342,152

16,364

Operating expenses

82,97038,854

Operating income

14,333Eliminations/Corporate

Consolidated

184,362-

184,362

220

3,668

(3,668)-30,973

1,238

188,031(3,668)184,362

14,49830,702

1,087

168,113

3,195

171,309

3,298

1,865

270

150

19,918(6,864)

13,053

114,945

80,341

12,482-

6,008

213,778

122,881336,659

5,327

5,495

533

383

88

11,829640

12,469

-

-

-

14

1,272

1,286

-

1,286

11,064

9,489

166

57

85

20,865

2,227

23,093

Other

Total

1. Net sales andoperating income
Net sales

2. Assets, depreciation,
impairment loss and capital
expenditures

AssetsDepreciation
Impairment loss
Capital expenditures(2) Current period (From April 1, 2007 to March 31, 2008)(Millions of yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials(1) Sales to third parties

111,084

48,753

11,437837

172,113-

172,113(2) Inter-segment sales
and transfers

-

0

3,166

75

3,241

(3,241)-

Total

111,084

48,753

14,603912

175,354(3,241)

172,113

Operating expenses

95,25345,482

12,713

899

154,349

4,086

158,435

Operating income

15,830

3,270

1,890

13

21,004(7,327)

13,677

133,580

93,142

12,326

5,701

244,751

104,551

349,302

Depreciation

7,057

6,612

471

80

14,222832

15,054

Capital expenditures

16,419

8,351

386

58

25,216684

25,900

Other

Total

Eliminations/Corporate

Consolidated

1. Net sales andoperating income
Net sales

2. Assets, depreciationand capital expenditures

Assets- 21 -

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

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

Pharmaceutical

Half-type and full-type kits, double-bag kits, pre-filled syringes, dialysate
solution, and circulatory drugs, etc.

Glass & Materials

Glass for pharmaceutical containers, glass for thermos bottles, glass forlighting purposes, stoppers for plastic containers and rubber stoppers, etc.

Store

Fresh meat and fish, vegetables, fruits, processed food, daily foods, frozen
foods, general groceries and medicine, etc.

Other

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

2. Operating expenses of “Eliminations/Corporate” for the previous and current consolidated
accounting periods included unallocated corporate costs of 6,864 million yen and 7,327 million
yen, respectively. The unallocated corporate costs consisted primarily of the parent company’s
research and development costs and headquarters administration costs.
3. As described in “Changes in accounting method” 1), revised the corporate income tax law, wehave adopted the depreciation method based on the revised corporate income tax law fortangible fixed assets acquired on or after April 1, 2007, from the current consolidated
accounting period. As a result, operating expenses in Medical Equipment, Pharmaceutical,
Glass&Materials and Elimination/Corporate segment, are supposed to be increasing 225 million
yen, 227 million yen, 11 million yen and 45 million yen respectively, and operating incomes aresupposed to be decreasing respectively, comparing with the incomes calculated according to
the previous method.
4.

As described in “Changes in accounting method” 2), we have adopted, since the current
consolidated accounting period, “Treatment on audit concerning reserves based on the special
taxation measures law and reserves or provisions based on special laws” to change into themethod as providing accrued severance indemnity for directors and corporate auditors at theend of the current consolidated accounting period, based on the internal regulation of thecompanies. As a result, operating expenses in Pharmaceutical and Elimination/Corporate
segment, are supposed to be increasing 35 million yen and 17 million yen respectively, andoperating incomes are supposed to be decreasing respectively, comparing with the incomes
calculated according to the previous method.

5.

As described in “Additional information”, revised the corporate income tax law, we havedepreciated, included in cost of goods sold and selling, general and administrative expenses, thedifference between 5% equivalent amount of acquisition cost of tangible fixed assets and its
memorandum value for 5 years from next consolidated accounting period to consolidated
accounting period when reached to 5% of its acquisition cost which was depreciated byapplication of the corporate income tax before the revision since the current consolidated
accounting period. As a result, operating expenses in Medical Equipment, Pharmaceutical,
Glass&Materials, Others and Elimination/Corporate segment, are supposed to be increasing 112
million yen, 147 million yen, 38 million yen, 0 million yen, and 20 million yen respectively, andoperating incomes are supposed to be decreasing respectively, comparing with the incomes
calculated according to the previous method.
6. Assets of “Eliminations/Corporate” for the previous and current consolidated accounting periods
included corporate assets of 122,930 million yen and 104,740 million yen, respectively. The
corporate assets consisted mainly of parent company’s surplus operating funds (cash on handand in banks), long-term investment funds (investment securities) and assets related to researchand development, as well as of the assets belonging to the headquarters administration
department.
7. Depreciation and capital expenditures included long-term prepaid expenses and its
amortization.

- 22 -

2. Segment information by geographical area
(1) Previous period (From April 1, 2006 to March 31, 2007)
Japan

America(Millions of yen)
Asia

EuropeTotal

Eliminations/Corporate

Consolidated

1. Net sales andoperating income
Net sales(1) Sales to third parties

156,042

17,382

7,102

3,835

184,362-

184,362(2) Inter-segment sales
and transfers

23,610804

86

12,37336,875(36,875)-

Total

179,653

18,186

7,188

16,208221,238(36,875)

184,362

Operating expenses

159,255

19,133

7,050

15,755201,193(29,884)

171,309

Operating income (loss)

20,398

(946)

138

453

20,044(6,991)

13,053214,818

6,426

3,112

6,369

230,726

105,932

336,659

2. Assets(2) Current period (From April 1, 2007 to March 31, 2008)
Japan

America(Millions of yen)
Asia

EuropeTotal

Eliminations/Corporate

Consolidated

1. Net sales andoperating income
Net sales(1) Sales to third parties

135,609

20,909

9,173

6,421

172,113-

172,113(2) Inter-segment sales
and transfers

26,4161,137

913,95441,517(41,517)-

Total

162,025

22,046

9,183

20,375

213,630(41,517)

172,113

Operating expenses

139,984

23,712

8,973

19,423

192,093(33,658)

158,435

Operating income (loss)

22,041(1,666)

209

952

21,536(7,859)13,677

241,543

8,661

4,565

9,585

264,355

84,946349,302

2. Assets

Notes: · 1.

Operating expenses of “Eliminations and Corporate” for the previous and current consolidated
accounting periods included unallocated corporate costs of 6,864 million yen and 7,327 million
yen, respectively. The unallocated corporate costs consisted primarily of the parent company’s
research and development costs and the headquarters administration costs.
2.
As described in “Changes in accounting method” 1), revised the corporate income tax law,
we have adopted the depreciation method based on the revised corporate income tax law fortangible fixed assets acquired on or after April 1, 2007, from the current consolidated
accounting period. As a result, operating expenses in Japan and Elimination/Corporate
segment, are supposed to be increasing 464 million yen and 45 million yen respectively, andoperating incomes are supposed to be decreasing respectively, comparing with the incomes
calculated according to the previous method.
3.

As described in “Changes in accounting method” 2), we have adopted, since the current
consolidated accounting period, “Treatment on audit concerning reserves based on the special
taxation measures law and reserves or provisions based on special laws” to change into themethod as providing accrued severance indemnity for directors and corporate auditors at theend of the current consolidated accounting period, based on the internal regulation of thecompanies. As a result, operating expenses in Japan and Elimination/Corporate segment, aresupposed to be increasing 35 million yen, 17 million yen, and operating incomes are supposed
to be decreasing respectively, comparing with the incomes calculated according to the previous
method.

4.

As described in “Additional information”, revised the corporate income tax law, we havedepreciated, included in cost of goods sold and selling, general and administrative expenses,
the difference between 5% equivalent amount of acquisition cost of tangible fixed assets and its
memorandum value for 5 years from next consolidated accounting period to consolidated- 23 -

accounting period when reached to 5% of its acquisition cost which was depreciated byapplication of the corporate income tax before the revision since the current consolidated
accounting period. As a result, operating expenses in Japan and Elimination/Corporate
segment, are supposed to be increasing 298 million yen and 20 million yen respectively, andoperating incomes are supposed to be decreasing respectively, comparing with the incomes
calculated according to the previous method.
5.

Assets of “Eliminations/Corporate” for the previous and current consolidated accounting periods
included corporate assets of 122,930 million yen and 104,740 million yen, respectively. The
corporate assets consisted mainly of parent company’s surplus operating funds (cash on handand in banks), long-term investment funds (investment securities) and assets related to researchand development, as well as of the assets belonging to the headquarters administration
department.
6.
Classification of countries or areas is based on geographical proximity.
7.
The major countries included in each geographical area are as follows:
America……..
The United States of America and Brazil
Europe………
Belgium
Asia………….
China, Thailand and Singapore

3. Overseas sales(1) Previous period (From April 1, 2006 to March 31, 2007)

1. Overseas sales(Millions of yen)

America

Europe

Asia

Total

31,89915,071

7,567

54,538

2. Consolidated net sales
3. Percentage of overseas sales toconsolidated net sales (%)

184,362

17.3%

8.2%

4.1

(2) Current period (From April 1, 2007 to March 31, 2008)

1. Overseas sales(Millions of yen)

America

Europe

Asia

Total

35,687

19,14010,284

65,112

2. Consolidated net sales
3. Percentage of overseas sales toconsolidated net sales (%)

Notes:

1.
2.
3.

29.6%

172,113

20.7%

11.1%

6.0

37.8%

Overseas sales represent those of the Company and the consolidated subsidiaries tocountries and areas outside of Japan.
Classification of countries or areas is based on geographical proximity.
The major countries included in each geographical area are as follows:
America···············The United States of America, Canada and Brazil
Europe·················Belgium, Denmark and Germany
Asia ·····················China, India, Indonesia, Taiwan and Thailand- 24 -

(Lease Transactions)
Finance lease transactions, except for those where ownership of the leased assets is deemed to betransferred to the lessee
Previous period
Current period
Acquisition price equivalent
Accumulated depreciation equivalentBook value equivalent

3,894 mil.yen
2,569
1,324

2,694 mil.yen
1,883
810

Lease commitments
Due within one year
Due after over one year
Total

523 mil.yen
630
1,154

525 mil.yen
656
1,181

585 mil.yen
503 mil.yen
49 mil.yen

605 mil.yen
561 mil.yen
46 mil.yen

Lease payments
Depreciation equivalentInterest expense equivalent

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninths of the amount computed by the declining-balancemethod with 10% of hypothetical residual value for the lease term as remaining life is allocated toeach period over the lease term.
Method of calculation of interest equivalent
Difference between total lease payments and acquisition cost equivalent of leased assets
comprises interest expense equivalent, and interest expense equivalent is allocated to each period
over the lease term by the interest method.

- 25 -(Tax-effect accounting)
1. Major components of deferred tax assets and liabilities
Previous period(as of March 31, 2007)

Deferred tax assets (current)
Elimination of unrealized profits
Accrued enterprise tax
Allowances for bonus payables
Al l owances f or l oss on cl earance of busi ness
Accounts receivable
Allowance for doubtful accounts
Tax loss carryforwards
OthersSubtotal
Allowance accountGross deferred tax assets (current)
Offset with deferred tax liabilities (current)
Net deferred tax assets (current)

Current period(as of March 31, 2008)

717
618
592
791
202
143
108
30
3,206
(153)
3,053
(19)
3,033

mil. yen

986
170
621
791
196
164
46
210
3,187
(273)
2,914
(12)
2,902

mil. yen

Deferred tax liabilities (current)
Reserve for special depreciation
OthersGross deferred tax liabilities (current)
Offset with deferred tax assets (current)
Net deferred tax liabilities (current)

17
2
19
(19)
-

mil. yen

11
0
12
(12)
-

mil. yen

Deferred tax assets (fixed)
Impairment loss
Valuation difference of land
Allowance for doubtful accounts
Accrued pension and severance costAccrued severance indemnity for directors and corporate auditors
Disallowed loss from bad debt
Tax loss carryforwards
OthersSubtotal
Allowance accountGross deferred tax assets (fixed)
Offset with deferred tax liabilities (fixed)
Net deferred tax assets (fixed)

848
149
962
1,009
117
2,358
61
5,507
(2,391)
3,116(3,054)61

mil. yen

846
149
1,011
837
284
117
3,133
168
6,548
(3,210)3,337(3,178)159

mil. yen

Deferred tax liabilities (fixed)
Valuation differences of other securities
OthersGross deferred tax liabilities (fixed)
Offset with deferred tax assets (fixed)
Net deferred tax liabilities (fixed)

20,403
68
20,471(3,054)
17,417mil. yen

12,94170
13,011(3,178)
9,833

mil. yen

2. Reconciliation of the difference between statutory tax rate and effective tax rate after adoption oftax-effect accounting
Previous period(as of March 31, 2007)

Statutory tax rate
(Adjustments)
Permanently disallowed items such as entertainment expenses
Permanently non-taxable items such as dividends received
Unrecognized tax benefits of loss-making subsidiaries
Per capita charges of inhabitants taxes
Unrecognized tax benefits of equity in loss (profit) of affiliate
Tax credits on research and development expenses, etc.
Utilization of tax loss carryforwards
Others
Effective tax rate after adoption of tax-effect accounting- 26 -

40.5
2.3
(0.6)
4.6
0.8
1.9
(2.0)
(0.8)
2.0
48.8

%

Current period(as of March 31, 2008)

40.5
2.9
(1.4)
10.9
1.3
(0.1)
(5.1)
(2.0)
(1.1)
45.9

%

(Securities)
1) Other securities with market quotations(Unit: Millions of yen)
Current period(as of March 31, 2008)

Previous period(as of March 31, 2007)
Acquisition
cost

Carrying
value onconsolidated
B/S

Difference

Acquisition
cost

Carrying
value onconsolidated
B/S

Difference

Stock
Bonds
Others22,95860

72,386
81

49,42820

22,937-54,240-31,302-

Subtotal

23,01872,46749,44822,93754,24031,302

Stock
Bonds
Others

309
-

279
-

(29)
-

1,335
60

1,043
59

(291)
(1)

Subtotal

309

279

(29)

1,395

1,103

(292)

23,32872,74649,41824,33355,34331,010Classification

Securities whose carrying value
exceeds their acquisition cost

Securities whose carrying value donot exceed their acquisition cost

Total
(Note)

Impairment loss is not recorded on the other securities with market quotations for the previous
consolidated accounting period and the current consolidated accounting period.
Impairment loss is recorded on the securities whose fair values at the end of the consolidated
accounting period have declined by more than 50%, unless the values are reasonably
considered to be recoverable.

2. Other securities sold during the previous and current periods(Unit: Millions of yen)
Current period(From April 1, 2007
To March 31, 2008)

Previous period(From April 1, 2006
To March 31, 2007)
Sales
proceeds

Total gains

24-

Total losses
3

Sales
proceeds-

Total gains-

Total losses-

3. Securities that do not have market quotations(Unit: Millions of yen)Previous period(as of March 31, 2007)
Carrying value on
Consolidated Balance Sheet

Other securities
Unlisted stock
Bonds
Stocks of subsidiaries andaffiliates
Stocks of unconsolidated
subsidiaries
Stocks of affiliated companies
Total- 27 -

Current period(as of March 31, 2008)
Carrying value on
Consolidated Balance Sheet

1,175
-

1,173
10

192

192

3,189

3,205

4,557

4,581

(Employees Pension and Severance Benefits)
1. Outline of the adopted pension and severance benefit plan
The Company and its domestic consolidated subsidiaries have defined benefit plans, such as
tax-qualified pension plan and lump-sum severance benefit plan, and certain domestic consolidated
subsidiaries have defined contribution plans.
Certain foreign subsidiaries also have defined benefit plans and defined contribution plans, etc.
2. Matters related to pension and severance liabilities
Previous period

Current period(as of March 31, 2007)(as of March 31,2008)(1) Pension and severance liabilities(7,749)(2) Pension plan assets

6,538

6,991

(3) Unfunded pension and severance liabilities (1)+(2)(1,210)(1,884)(4) Unrecognized actuarial differences(1,353)(173)(5) Unrecognized past-service liabilities

-

(20)

(2,564)(2,078)-50(6) Net amount on the consolidated balance sheet (3)+(4)+(5)(7) Prepaid pension cost

mil.yen(8,876)

mil.yen(2,564)(2,128)(8) Accrued pension and severance cost(6)-(7)(Note) Certain subsidiaries adopt a simplified method in calculation of their pension and severance
liabilities.
3. Matters related to pension and severance benefit expenses(1) Service cost(2) Interest cost(3) Expected return on plan assets(4) Amortization of actuarial differences(5) Amortization of past-service liabilities(6) Others (Contribution to defined contribution plan)(7) Others (Retirement allowance)(8) Pension and severance benefit expenses(1)+(2)+(3)+(4)+(5)+(6)+(7)Previous period

Current period(From April 1, 2006
To March 31, 2007)

From April 1, 2007)
To March 31, 2008)

585 mil. yen
204
(98)
(166)
524

586 mil. yen
208
(123)
(262)
(3)
32
36
474

(Note) Pension and severance benefit expenses of consolidated subsidiaries that adopt a simplified
method are included in “(1) Service cost”.
4. Matters related to the basis of calculations of pension and severance liabilities, etc.
Previous period(as of March 31, 2007)

Current period(as of March 31, 2008)(1) Method of allocating expected pension andseverance benefits to reporting periods(2) Discount rate(3) Expected rate of return on plan assets(4) Amortization period of past-service liabilities

Fixed base for period

Fixed base for period

Mainly 2.5%
1.5%-

Mainly 2.5%
Mainly 1.5%

(5) Amortization period of actuarial differences

5 years bystraight-line methodfrom the following
accounting period after
the year of recognitionof difference- 28 -

Mainly 5 years bystraight-line method
Mainly 5 years bystraight-line methodfrom the following
accounting period
after the year ofrecognition of difference

(Per share information)

Net assets per share

Previous period(From April 1, 2006
To March 31, 2007)

Previous period(From April 1, 2007
To March 31, 2008)

1,979.21 yen

1,861.79 yen

134.71 yen
Diluted earning per shareis not presented because
there is no potential stock
which could have adilutive effect.

70.17 yen
Diluted earning per shareis not presented because
there is no potential stock
which could have a dilutive
effect.

Previous period
As ofMarch 31, 2007

Current period
As ofMarch 31, 2008

127,020

119,544

1,369

1,388

125,651

118,155

63,87863,878393

415

63,48563,463

Previous period(From April 1, 2006
To March 31, 2007)

Previous period(From April 1, 2007
To March 31, 2008)

8,555

4,454

-

-

Net income related to the common
stock (Million yen)

8,555

4,454

Average shares of the common stockduring the period (Thousands shares)

63,50763,472

Sort of potential shares:
Stock acquisition right
Number of potential
shares:2,800 units

Sort of potential shares:
Stock acquisition right
Number of potential
shares:2,800 units

Earnings per share(Notes) Basis of computation
1. Net assets per share

Total net assets in B/S(million yen)Amount to be deducted from total net
assets in B/S (Million yen)
Minority interests
Net assets related to the common
stocks(million yen)
Common stocks issued(Thousands shares)
Treasury stocks of common stock(Thousands shares)
Number of common stocks(thousand
shares) utilized for computation of net
assets per share
2. Earnings per share

Net income(Million yen)Amount not attributed tocommon stock (Million yen)the

Overview of the potential shares notincluded in the computation ofdiluted earning share because of nothaving a dilutive effect- 29 -

(Production, Orders received and Sales)
1. Production(Unit: Millions of yen)

Business segment

Previous period(From April 1, 2006
To March 31, 2007)
Ratio of change fromthe previous period
Amount produced(%)

Current period(From April 1, 2007
To March 31, 2008)
Ratio of change fromthe previous period
Amount produced(%)

Medical Equipment

73,011

11.5

84,38915.6

Pharmaceutical

41,74416.4

47,814

14.5

Glass & Materials

3,253

(4.8)

2,689

(17.3)

Other

700(23.3)

1,354

93.5

Total

118,70912.4

136,247

14.8

Notes: 1. Amounts produced are calculated based on average selling prices.
2. The above amounts are after eliminations of the inter-segment transactions.
3. The above amounts do not include the related consumption taxes etc.
2. Orders received
Since we adopt the production system based on estimated orders, there is nothing applicable hereto
regarding the amount and the balance of orders received.
3. Sales(Unit: Millions of yen)

Business segment

Previous period(From April 1, 2006
To March 31, 2007)
Ratio of change fromthe previous period
Amount sold(%)

Current period(From April 1, 2007
To March 31, 2008)
Ratio of change fromthe previous period
Amount sold(%)

Medical Equipment

97,3007.1

111,084

14.2

Pharmaceutical

42,152

19.7

48,753

15.7

Glass & Materials

12,918

8.3

11,437(11.5)

Store

30,973(54.0)

-

-

Other

1,017

(33.0)

837(17.7)

Total

184,362(10.9)

172,113(6.6)

Notes: 1. The above amounts are after eliminations of the intersegment transactions.
2. The above amounts do not include the related consumption taxes etc.

- 30 -

Balance Sheets
PeriodAccount

Previous Period(as of March 31, 2007)
AmountRatio(ASSETS)
Current Assets
Cash on hand and in banks

Trade notes receivable
Accounts receivable
Merchandise and finishedproducts

Raw materials and supplies
Work in process
Prepaid expenses
Deferred tax assets
Short-term loan receivablesfrom subsidiaries
Other receivables
Other current assets
Allowance for doubtful
accounts(Unit: Millions of yen)
Current Period
Change(as of March 31, 2008)
in amount
AmountRatio%
116,12937.9%
121,234

39.1

5,104

37,437
13,72236,09035,857
11,51839,921(1,579)(2,204)
3,830

17,074
2,848
1,669
303
1,914

18,801
3,487
2,108
209
1,477

1,727
638
438
(93)
(436)

2,344
1,280
1,481

4,289
1,663
1,954

1,945
383
472

(38)

(56)

(18)

Fixed Assets

190,218

62.1

188,62960.9(1,589)Tangible fixed assets

37,482

12.2

44,176

14.3

6,694

Buildings
Structures
Machinery
VehiclesTools and equipments
Land
Construction in progress
Intangible fixed assets
Software
Others

10,619361
10,87114
2,104
11,225
2,285

13,624424
13,866
11
2,063
11,430
2,755

278

0.1

342

3,005
62
2,995
(3)
(41)
205
470
0.1

274
68

176
101
152,457

Investment securities

69,161
48,433

52,91957,046(16,242)
8,613

9,482
294

11,485
222

2,002
(71)

Allowance for investment loss

22,292
1,523
4,624
761
(2,563)(1,553)

20,355
1,210
4,259
732
(2,569)(1,553)(1,937)
(312)
(364)
(29)
(6)
-

Total Assets

306,347

Long-term prepaid expenses
Lease deposits
Other assets
Allowance for doubtful accounts

100.0- 31 -

144,109

97(33)

Investments and other assets

Stocks of related companies
Investments other than stock in
related companies
Long-term loans receivable
Long-term loans receivablefrom subsidiaries

49.8

64

309,863

46.5

100.0

(8,348)3,515

Balance Sheets
PeriodAccount

Previous Period(as of March 31, 2007)
AmountRatio%(LIABILITIES)Current liabilities
Trade notes payable
Trade accounts payable
Short-term borrowings
Current portion of bonds
Current portion of long-term borrowings
Other payables
Accrued expenses
Accrued income taxes
Amounts withheld for income taxes, etc.
Allowance for bonuses payables

Allowance for bonuses payables for directors and corporate auditors
Allowance for loss on clearance of businessNotes payable for plant and equipment
Other current liabilities

Fixed liabilities
Bonds
Convertible-bond-type bonds with stock acquisition rights
Long-term borrowings
Deferred tax liabilities
Accrued pension and severance cost

86,25386,325

Allowance for loss on lawsuit
Lease deposits received
Total liabilities

172,579(Net Assets)
Shareholders’ equity
CapitalCapital surplus
Capital reserve
Other capital surplus
Earned surplus
Revenue reserve
Other revenue reserve
Reserve for dividends

106,937
28,66329,97329,972
1
49,042
1,196

83,58027.0

15,893
13,881
18,40015,00011,498
2,551
766
600
70
776
70
1,954
1,842
275

16,941
13,242
18,60019,613
3,819
538
7,500
58
850
229
1,954
737
2,168

31,00014,00023,926
14,645
1,543
1,210

Accrued severance indemnity for directors and corporate auditors

28.1(Unit: Millions of yen)
Current Period
Change(as of March 31, 2008)
in amount
Amount
Ratio
%

28.2

102,109(1,047)638(200)
15,000(8,115)(1,268)228(6,900)
11
(74)
(158)
1,105
(1,892)32.9

36,00014,00041,576
7,529
1,095
488
170
1,249
56.3
%
34.9
9.3
9.8

16.0

185,690

107,608
28,66329,97529,972
3
49,764
1,196

15,7835,000
17,650(7,116)
(447)
488
170
39

59.9
%
34.7
9.2
9.7

16.1

13,110

670
2
2
722
-

Valuation differences of other securities

16
66
39,735
8,028(741)
26,83026,830Total Net Assets

133,76843.7

124,172

40.1(9,595)

Total liabilities and net assets

306,347100.0

309,863

100.0

3,515

Reserve for special depreciation
Special reserve
Retained earnings

Treasury stock
Valuation and translation difference

(0.2)
8.8

- 32 -

1641
44,935
3,576(794)
16,564
16,564(2,673)

(0.3)
5.4

(25)
5,200
(4,452)(53)(10,266)(10,266)

Statements of Income(Unit: Millions of yen)
PeriodAccount

Previous Period

Current Period(From April 1, 2006
To March 31, 2007)(From April 1, 2007
To March 31, 2008)

AmountAmountRatio

Change inamountRatio ofchange

Ratio

%

%

Net sales
Cost of goods sold127,407
96,439100.0
75.7

135,035
101,889

100.0
75.5

7,628
5,450

6.0
5.7

Gross profit

30,96824.3

33,145

24.5

2,177

7.0

20,271

15.9

20,872

15.4

600

3.0

Operating income

10,696

8.4

12,273

9.1

1,576

14.7

Non-operating income

1,544
578
537
343
85
1,209
526
648
34
11,031

1.2

1,576
658
611
306
5,231
836
612
120
3,527
134
8,618

1.2

32
80
74
(343)
221
4,021
310
(36)
120
3,527
99
(2,413)

2.1

14,2738
661
13,588
14
7,998
176
384
1,954
268
700

11.2

954
2
859
41
44
6
1,941
368
-

0.7

Selling, general and administrative
expenses

Interest income
Dividend income
Exchange gain
OthersNon-operating expenses
Interest expenses
Interest on bonds
Issuance expense for bonds
Exchange loss
OthersRecurring income
Extraordinary gains
Gains on sales of fixed assets

Governmental subsidies
Gain on sale of securities in affiliates
Adjustments to the prior year’s results
Gain on compensation for loss
OthersExtraordinary losses
Losses on sales and disposals of fixed assets
Impairment loss on fixed assets
Allowance for loss on clearance of business
Loss on investment securities
Loss on devaluation of investment in affiliates
Allowance for investment loss
on affiliated companies
Advanced depreciation on fixed assets
Allowance for doubtful debts
Allowance for loss on lawsuit
Allowance for accrued severance indemnity fordirectors and corporate auditors in prior years
Abnormal manufacturing cost
Others

0.9

8.7

6.3

3.9

6.4

1.4

(21.9)(13,318)(6)
197(13,588)41
44(7)(6,057)192(384)(1,954)
(268)
(700)

1,553
650
2,200
-

842
170

(1,553)191(2,200)
170

110

471
44
43

471
44
(66)

Net income before income taxes
Corporate, inhabitants andenterprise taxes
Adjustment for deferred taxes

17,306

13.6

7,632

5.7

(9,674)9,310(2,424)

7.3
(1.9)

2,474
308

1.9
0.2

(6,835)
2,733

Net income

10,420

8.2

4,848

3.6

(5,572)- 33 -

332.5(55.9)(53.5)

(3) Statement of Shareholders’ Equity
Previous period (From April 1, 2006 to March 31, 2007)
Shareholders’ equity
CapitalCapital surplus
Capitalreserve

Other
capitalsurplus

Earned surplus
Total
capitalsurplus

Revenue
reserve

Reservefordividends

Reservefor special
depreciation

Voluntary
reserve

Retainedearnings

Total
EarnedsurplusTreasury

Total

stock

shareholde-

rs’ equity

Balance at March 31, 2006

28,66329,972-

29,972

1,196

16

145

37,1354,315

42,808(648)

100,794

Dividend of surplus(4,096)(4,096)(4,096)

Bonuses to directors
and corporate auditors

(89)

(89)

(89)

10,42010,42010,42078--(2,600)--

Increase (decrease) during
the period

Net income
Reversal of reserve for
special depreciation(78)

Addition to voluntary
reserve

2,600

Acquisition of treasury
stock
Disposal of treasury
stock
Increase (decrease) of
the items other thanshareholders’ equity
during the period
Net increase (decrease)during the period

Balance at March 31, 2007

1

(101)

9

10

-

-

1

1

-

-

(78)

2,600

3,712

6,234

(92)

6,143

28,66329,972

1

29,973

1,196

16

66

39,735

8,028

49,042(741)

106,937

Valuation and translationdifferences

Balance at March 31, 2006

1

(101)

Valuationdifferencesof othersecurities

Total
valuationandtranslationdifferences

22,18622,186

Total net
assets122,981

Increase (decrease) during
the period

Dividend of surplus(4,096)

Bonuses to directors andcorporate auditors(89)

Net income

10,420

Reversal of reserve for
special depreciation-

Addition to voluntary
reserve-

Acquisition of treasury
stock

(101)

Disposal of treasury
stock
Increase (decrease) of
the items other thanshareholders’ equity
during the period

4,644

4,644

4,644

Net increase (decrease)during the period

4,644

4,644

10,787

Balance at March 31, 2007

26,83026,830133,768

10- 34 -

Current period (From April 1, 2007 to March 31, 2008)
Shareholders’ equity
CapitalCapital surplus
Capitalreserve

Other
capitalsurplus

Earned surplus
Total
capitalsurplus

Revenue
reserve

Reservefordividends

Reservefor special
depreciation

Voluntary
reserve

Retainedearnings

Total
EarnedsurplusTreasury

Total

stock

shareholde-

rs’ equity

Balance at March 31, 2007

28,66329,972

1

29,973

1,196

16

66

39,735

8,028

49,042(741)

106,937

Dividend of surplus(4,126)(4,126)(4,126)

Net income

4,848

4,848

4,848

25

-

-

(5,200)--

Increase (decrease) during
the period

Reversal of reserve for
special depreciation(25)

Addition to voluntary
reserve

5,200

Acquisition of treasury
stock
Disposal of treasury
stock
Increase (decrease) of
the items other thanshareholders’ equity
during the period
Net increase (decrease)during the period

Balance at March 31, 2008

2

(64)

10

13

-

-

2

2

-

-

(25)

5,200

(4,452)

722

(53)

670

28,66329,972

3

29,975

1,196

16

41

44,935

3,576

49,764(794)

107,608

Valuation and translationdifferences

Balance at March 31, 2007

2

(64)

Valuationdifferencesof othersecurities

Total
valuationandtranslationdifferences

26,83026,830Total net
assets133,768

Increase (decrease) during
the period

Dividend of surplus(4,126)

Net income

4,848

Reversal of reserve for
special depreciation-

Addition to voluntary
reserve-

Acquisition of treasury
stock

(64)

Disposal of treasury
stock
Increase (decrease) of
the items other thanshareholders’ equity
during the period(10,266)(10,266)(10,266)

Net increase (decrease)during the period(10,266)(10,266)(9,595)

Balance at March 31, 2008

16,564

16,564

124,172

13- 35 -

(4) Significant Accounting Principles
1) Valuation standards and methods for securities
Stocks issued by subsidiaries
and affiliated companies ·············Valued at cost by the weighted average method
Other securities
Securities with market
quotations································Valued at market price quoted on the balance sheet date.
(Differences in valuation are presented as a component ofshareholders’ equity. Costs of sales are determined by theweighted average method.)
Securities without market
quotations································Valued at cost by the weighted average method
2) Valuation standards and methods for inventories
Merchandises, finished products
and work in process ····················Valued at cost by the weighted average method
Raw materials and supplies ········Valued at cost by the first-in first-out method
3) Method of depreciation and amortization for fixed assets
Tangible fixed assets: ·················Declining-balance method
Durable years and residual values are based on the same
standards as provided by the Corporate Income Tax Law.
Buildings acquired after April 1, 1998 (excluding attachedstructures), are depreciated by straight-line method.
Intangible fixed assets·················Straight-line method
Durable years are based on the same standards as provided
by the Corporate Income Tax Law.
However, the software for internal use is amortized by thestraight-line method for the period during which it is available in
the Company (5 years).
Long-term prepaid expenses ······Straight-line method
4) Standards for recognition of allowances
Allowance for doubtful
accounts ··························· In order to cover the probable losses on collection, an
allowance for doubtful accounts is provided for the estimatedamount of uncollectible receivables. For general receivables,
the amount of provision is based on historical write-off rates, andfor the doubtful receivables, based on the specific collectability.
Allowance for investment
loss ································· In order to cover the probable losses on investment to theaffiliates, an allowance for loss is provided for the estimatedamount considering the business results and assets situation.
Allowance for bonuses
payables ·························· In order to cover the payment of bonuses to employees, anallowance is provided for the estimated amount of bonuses to be
paid, prorated for the current accounting period.
Allowance for bonuses
payables for directors
and corporate auditors······ In order to cover the payment of bonuses to directors andcorporate auditors, an allowance is provided for the estimatedamount of bonuses to be paid, prorated for the current
accounting period.
Allowance for loss on
clearance of business ····· In connection with withdrawal from retail business which wesold the shares of the subsidiaries, the estimated loss at the endof the current accounting period is posted for disposal of land,building and other properties to be sold accordingly.
Accrued pension and- 36 -

severance cost ················· An allowance is provided for employee’s pension andseverance payments based on the estimated amounts ofprojected benefit obligation and plan assets at the end of thecurrent accounting period.
Actuarial difference is expensed in the following accounting
period after the year of such recognition, using the straight-line
method for five years.
Accrued severance
indemnity for directors
and corporate auditors...... An allowance is provided for severance indemnity for directors
and corporate auditors based on the amounts to be paid at theend of the current accounting period based on the internal
regulation of the company.
Allowance for loss on
lawsuit............................

In order to cover the probable losses on lawsuit, an allowance
for loss is provided for the estimated amount acceptable asneeded.

6) Accounting method for lease transactions
Finance leases, except for those where ownership of the leased assets is deemed to betransferred to the lessee, are accounted for by the method similar to that applicable to ordinary
operating leases.
7) Other significant basis on preparation for financial statements
Consumption Taxes
Consumption taxes are excluded from revenues and expenses accounts.
(5) Significant change in accounting method(Change in Accounting Method)
1) Change in depreciation method of tangible fixed assets
Revised the corporate income tax law (Law for revision of a part of income tax law and related law,
published on March 30, 2007, and Government ordinance for revision of a part of the enforcement
ordinance of the corporate income tax law, published on March 30, 2007, the enforcement ordinanceno.83), we have changed the depreciation method according to the method of the revised corporate
income tax law for tangible fixed assets acquired on or after April 1, 2007, from the current accounting
period. As a result, gross profit decreased 205 million yen, operating income, recurring income andnet income before adjustment of taxes decreased 276 million yen, comparing with the computation by
the previous method.
2) Standard for recognition of accrued severance indemnity for directors and corporate auditors
Severance cost for directors and corporate auditors had been processed as expense when it waspaid. However, we have adopted, since the current accounting period, “Treatment on audit
concerning reserves based on the special taxation measures law and reserves or provisions basedon special laws” (Japan Institute Certified Public Accountants, published on April 13, 2007, Audit,
assurance practice committee report No.42) to change into the method as providing accrued
severance indemnity for directors and corporate auditors at the end of the current accounting period,
based on the internal regulation of the companies. As a result, selling, general and administrative
expenses increased 17 million yen, operating income and recurring income decreased the sameamount, and net income before adjustment of taxes decreased 488 million yen, comparing with thecomputation by the previous method.
(Additional information)
Change in depreciation method for tangible fixed assets
Revised the corporate income tax law(Law for revision of a part of income tax law and related law,
published on March 30, 2007, and Government ordinance for revision of a part of the enforcement
ordinance of the corporate income tax law, published on March 30, 2007, the enforcement ordinanceno.83), we have depreciated, included in cost of goods sold and selling, general and administrative
expenses, the difference between 5% equivalent amount of acquisition cost of tangible fixed assets- 37 -

and its memorandum value for 5 years from next consolidated accounting period to consolidated
accounting period when reached to 5% of its acquisition cost which was depreciated by application of
the corporate income tax before the revision since the current accounting period. As a result, grossprofit decreased 124 million yen, operating income, recurring income and net income before
adjustment of taxes decreased 154 million yen, comparing with the computation by the previous
method.
(6) Notes to the Financial Statements(Balance Sheet)(Previous period)(Current period)

1. Accumulated depreciation of tangible fixed assets

50,142 mil. yen

53,805 mil. yen

2. Balances with related companies
Short-term receivables
Long-term receivables
Short-term payables

19,006 mil. yen
22,292
12,48824,022 mil. yen
20,355
10,881

3. Pledged assets
Buildings
Land4,936 mil. yen
2,685

3,805 mil. yen
1,265

4. Obligations under guarantee contracts

7,825 mil. yen

7,495 mil. yen

24 mil. yen

18 mil. yen

5. Notes receivable discounted

6. Accounting processing for matured bill on last day of accounting period
Matured bill on last day was processed on traded date of bill. Accordingly, because the last day of theprevious accounting period was on holiday of financial institute, matured bill on the last day was included infollowing accounts.
(Previous period)(Current period)
Trade notes receivable
Trade notes payable
Notes payable for plant and equipment

753 mil. yen
1,471 mil. yen
23 mil.yen- mil. yen- mil. yen- mil. yen(Statement of Income)(Previous Period)(Current Period)

1. Amounts of transactions with related companies
Sales
Purchases
Other operational transactions
Non-operational transactions

26,879 mil. yen
35,180169
692

31,687 mil. yen
37,685217
638

2. Research and development expenses included inselling, general and administrative expenses and manufacturing cost

3,370 mil. yen

4,234 mil. yen(Notes to the Statement of Shareholders’ equity)
Previous period (From April 1, 2006 to March 31, 2007)
Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2007
349,589

Increased numbers
48,487

Decreased numbers
5,009

Number of shares
As of March 31, 2008
393,067(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.
Current period (From April 1, 2007 to March 31, 2008)
Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2007
393,067

Increased numbers
27,655Decreased numbers
5,685

Number of shares
As of March 31, 2008
415,037(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

- 38 -

(Lease Transactions)
Finance lease transactions, except for those where ownership of the leased assets is deemed to betransferred to the lessee(Previous period)(Current period)

Book value equivalent

858 mil. yen
553
305

1,051 mil. yen
642
408

Lease commitments
Due within one year
Due after over one year
Total

168 mil. yen
254
422

209 mil. yen
351
560

Lease payments
Depreciation equivalentInterest expense equivalent

208 mil. yen
188
10

240 mil. yen
260
15

Acquisition price equivalent
Accumulated depreciation equivalent

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninth of the amount computed by the declining-balance methodwith 10% of hypothetical residual value for the lease term as remaining life is allocated to each period
over the lease term.
Method of calculation of interest equivalent
Difference between total lease payments and acquisition cost equivalent of leased assets
comprises interest expense equivalent, and interest expense equivalent is allocated to each period
over the lease term by the interest method.
(Securities)
As of March 31, 2007 and 2008, there was no stock issued by subsidiaries or affiliated companies thathave market quotations.

(Net Sales by Division and Proportion to the Total)(Millions of yen)
PeriodDivision

Previous Period

Current Period(From April 1, 2006
To March 31, 2007)(From April 1, 2007
To March 31, 2008)

AmountProportion

Amount%Change inAmountRatio ofchangeProportion%%

Medical Equipment division

92,55772.6

100,904

74.7

8,347

9.0

Pharmaceutical division

19,15415.0

19,496

14.4

341

1.8

Glass & Materials division

14,084

11.1

12,543

9.3(1,540)(10.9)

Other

1,611

1.3

2,091

1.6

479

29.8

Total

127,407100.0

135,035

100.0

7,628

6.0

[including Exports][49,422]38.8[55,675]

41.2[6,252]

12.7- 39 -(Tax-effect accounting)
1. Major components of deferred tax assets and liabilities
Previous period(as ofMarch 31, 2007)
Deferred tax assets (current)
Accrued enterprise tax
Allowances for bonus payables
Allowances for loss on clearance of businessAccounts receivable
OthersGross deferred tax assets (current)
Offset with deferred tax liabilities (current)
Net deferred tax assets (current)
Deferred tax liabilities (current)
Reserve for special depreciation
Gross deferred tax liabilities (current)
Offset with deferred tax assets (current)
Net deferred tax liabilities (current)

Current period(asMarch 31, 2008)

of

587
344
791
202
5
1,931
(17)
1,914

mil. yen

101
314
791
196
85
1488
(11)
1,477

mil. yen

17
17
(17)
-

mil. yen

11
11
(11)
-

mil. yen

848
149
283
958
629
624
-

mil. yen

830
149
283
1,007
629
443
197

mil. yen

Deferred tax assets (fixed)
Impairment loss
Valuation difference of land
Devaluation of investment to affiliates
Allowance for doubtful accounts
Allowance for loss on investment
Accrued pension and severance costAccrued severance indemnity for directors
and corporate auditors
Loss from bad debt
OthersGross deferred tax assets (fixed)
Offset with deferred tax liabilities (fixed)
Net deferred tax assets (fixed)

117
34
3,645
(3,645)-

Deferred tax liabilities (fixed)
Reserve for special depreciation
Valuation differences of other securities
Gross deferred tax liabilities (fixed)
Offset with deferred tax assets (fixed)
Net deferred tax liabilities (fixed)

27
18,263
18,290(3,645)
14,645

117
102
3,761
(3,761)mil. yen

16
11,274
11,291(3,761)
7,529

mil. yen

2. Reconciliation of the difference between statutory tax rate and effective tax rate after adoption oftax-effect accounting
Previous period(as of Current period(as ofMarch 31, 2007)
March 31, 2008)40.5 %
Statutory tax rate
(Adjustments)
Permanently disallowed items such as
2.2
entertainment expenses
Permanently non-taxable items such as(1.3)
dividends received
Per capita charges of inhabitant taxes
0.9
Tax credits on research and development(4.9)
expenses, etc.
Others(0.9)
Effective tax rate after adoption of tax-effect(Note)
36.5
accounting(Note) The note is omitted, because the difference between statutory tax rate and effective tax rate after
adoption of tax-effect accounting is less than 5% of statutory tax rate.

- 40 -

6. Changes in Directors and Statutory Auditors(1) Change in representative of the company
N/A(2) Change in other directors or statutory auditors
1) Candidate for director to be newly assigned (Scheduled assignment date: June 26, 2008)
Director, general manager of product development and marketing of domestic division
Toshiaki Masuda
2) Candidate for director to be promoted (Scheduled assignment date: June 26, 2008)
Managing Director, general manager of international division
Kazuo Wakatsuki
3) Candidate for statutory auditors to be newly assigned (Scheduled assignment date: June 26, 2008)
Standing statutory auditor
Takayuki Nomiya
Statutory auditor (*)
Kiyoshi Kase
(Note *) Mr. Kiyoshi Kase is a candidate for external statutory auditor stipulated in article 2, no.16 in
the Company code.
4) Candidate for spare statutory auditors (Scheduled assignment date: June 26, 2008)
Spare statutory auditor (*)
Kazumichi Irie
(Note *) Mr. Kazumichi Irie is a candidate for external statutory auditor stipulated in article 2, no.16 in
the Company code.
5) Director to resign (Scheduled resigning date: June 26, 2008)
Managing director, general manager of international division
Seiya Ishida (to be assigned to advisor on the same date)6) Statutory auditors to resign (Scheduled resigning date: June 26, 2008)
Standing statutory auditor
Hiroshi Kobayashi
Statutory auditor (*)
Shuichi Tsuzuki- 41 -