Summary Report of Consolidated Financial Results
For the Three Months Period ended June 30, 2014
August 12, 2014stCompany name: NIPRO CORPORATION
TSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko Sano, President and Representative Director
Contact person: Kimihito Minoura, Director and General Manager of Corporate Planning Headquarters
TEL: (06)6372-2331
Filing date of quarterly reporting: August 14, 2014
Payment date of cash dividends: Supplemental material on quarterly reporting: No
Presentation on quarterly results: No(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Three Months ended June 30, 2014 (From April 1, 2014 to June 30, 2014)(1) Consolidated Results of Operations(Note: % of change from the same period a year ago)
Net Sales
Operating Income
Ordinary Income
Net Income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
3 months ended June 30, 2014
75,424
7.6
2,801
10.5
2,146
(50.3)
1,252(48.7)
3 months ended June 30, 2013
70,09319.8
2,534(27.0)
4,322
39.7
2,441
68.9
Note: Comprehensive income 3 months ended June 30, 2014: 1,191 million yen ((95.1)%) 3 months ended June 30, 2013: 24,354 million yen (-%)

3 months ended June 30, 2014
3 months ended June 30, 2013

Earnings per share
Yen
8.31
14.31

(2) Consolidated Financial Position
Total Assets
Millions of yen
3 months ended June 30, 2014
605,607
Year ended March 31, 2014
619,654
Note: Equity

2.

Diluted Earnings per share
Yen
7.40
12.92

Net Assets
Millions of yen
134,883
135,960

3 months ended June 30, 2014: 124,475 million yen

Equity Ratio
%
20.6
20.2

Year ended March 31, 2014: 125,426 million yen

Dividends

Year ended March 31, 2014
Year ending March 31, 2015
Year ending March 31, 2015
(Forecast)First-quarter
Yen-

Annual Dividends per Year
Year-end Dividends
Second-quarter
Third-quarter
Yen
Yen
Yen
16.00
14.50
13.50

-

13.00

Annual Dividends

Yen
30.50
26.50

Note: Revisions to the forecast of cash dividends in the current quarter: No
3. Forecast of Consolidated Financial Results for the Year ending March 31, 2015 (From April 1, 2014 to March 31, 2015)(Note: The % displays in the line of six months ending Sept. 30, 2014 show increase/decrease ratio against the six months
ended Sept. 30, 2013. The % displays in the line of year ending March 31, 2015 show increase/decrease ratio against theyear ended March 31, 2014
OperatingEarnings
Net Sales
Ordinary Income
Net Income
Incomeper Share
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
6 months ending Sept. 30, 2014
155,000 8.1
7,800 34.5
6,300
8.9
2,150
(17.9)
14.26
Year ending March 31, 2015
330,000 9.7
20,00062.7
16,700
40.1
6,700
134.1
44.45
Note: Revisions to the forecast of consolidated financial results in the current quarter: No

*Notes(1) Change in Significant Subsidiaries during the Current Period(Change in specified subsidiaries caused a change in the scope of consolidation): No
Additional: 0Removal: 0(2) Adoption of Accounting Treatments Simplified or Unique for Preparation: No(3) Change in Accounting Policies and Accounting Estimate and Restatement[1] Changes in accounting policies by a newly issued accounting pronouncement: Yes[2] Changes other than [1]: No[3] Change in accounting estimate: No[4] Restatement: No
Note: More information can be found in P.4 “2. Summary (Other) Information, (3) Changes in Accounting Policies andAccounting Estimate and Restatement” in the attachment.
(4) Issued Shares (Common stock)[1] Number of issued shares at end of the period (including treasury stock):
3 months ended June 30, 2014: 171,459,479 sharesYear ended March 31, 2014: 171,459,479 shares[2] Number of treasury stock at end of the period:
3 months ended June 30, 2014: 20,692,009 sharesYear ended March 31, 2014: 20,730,973 shares[3] Average number of shares during the period:
3 months ended June 30, 2014: 150,741,720 shares
3 months ended June 30, 2013: 170,547,387 shares
Note: Number of the treasury stocks as of June 30, 2014 included 1,148,400 shares, and as of March 31, 2014
included 1,187,500 shares owned by Trust Account E*Information regarding the quarterly review procedure
This quarterly summary report is exempt from quarterly review procedure based on the Financial Instruments
and Exchanges Act. It is under the review procedure process at the time of disclosure of this report.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes
The projection figures shown above are based on information that was available at the time of preparation and may
contain certain uncertainties. Actual performance and other factors may differ from these projections due tochanges in circumstances and other developments. More information concerning these forecasts can be found in P.4“1. Qualitative Information for the Three-Month Period Ended June 30, 2014, (3) Commentary on Forward-Looking
Statements Including Forecast of Consolidated Financial Results” in the attachment.

Table of Contents

1.

2.

3.

Qualitative Information for the Three-Months Period ended June 30, 20142

(1) Commentary on Business Results

2(2) Analysis Concerning Financial Position

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

4

Summary (Other) Information

4(1) Changes in Significant Consolidated Subsidiaries

4(2) Accounting Treatments Simplified or Unique for Preparation

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

4

Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets

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

7

Quarterly Consolidated Statements of Income

7

Quarterly Consolidated Statements of Comprehensive Income

7(3) Notes Regarding Consolidated Financial Statement

8

Notes regarding going concern

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

8

Segment Information

8-1-

1. Qualitative Information for the Three-Month Period Ended June 30, 2014
(1) Commentary on Business Results
During the three months of the fiscal year under review, the global economy generally remained on a gradual recovery
trend which saw an improvement in personal consumption and the employment environment in the United States andsigns of economic recovery in Europe. China and emerging countries continue to enjoy economic growth although there
are concerns about declining growth rates. On the other hand, the Japanese economy showed continued improvement ineconomic activities including corporate earnings and personal consumption following active economic and monetarymeasures taken by the government, although there were instable movements including a fallback after the last-minutesurge in demand before the consumption tax rate hike which was implemented in April 2014.
Under such circumstances, the Nipro Group has worked to improve operating results through its continued efforts to
expand sales and reduce costs.
As a result, consolidated sales for the three-month period ended June 30, 2014 increased by 7.6% from the same
period of the previous year to 75,424 million yen. As for the profit, consolidated operating income increased by 10.5% fromthe same period of the previous year to 2,801 million yen. Consolidated ordinary income, however, decreased by 50.3%
from the same period of the previous year to 2,146 million yen due to the foreign exchange loss compared a gain in thesame period of the previous year. Consolidated net income decreased by 48.7% from the same period of the previous
year to 1,252 million yen though gain on sales of investment securities were recorded.
The overview of the results for the current quarter period under review by business segment is as follows.

(i)

Medical-Related BusinessLooking at the domestic market, the revision of medical fees and drug prices, which became effective in April 2014,

resulted in a 0.1% increase in overall sales. Given the consumption tax rate hike, the revision actually caused a 1.26%
decrease in sales, and thus the market environment was quite severe. Under such circumstances, the Medical Sales
Division largely increased sales and profits of the drug-eluting balloon catheter “SeQuent® Please,” which was launched
in January 2014, in the field of vascular products thanks to cooperation with Goodman Co., Ltd. Expected sales andprofits of the cardiovascular (CVS) products were delivered as projected at the beginning of the fiscal year under review
in the midst of the severe environment where a competitor's ventricular assisting device was launched into the market
and new clinical trials were started by other companies. However, sales and profits were weak in injection-transfusion
products, enteral-alimentation products, testing products and dialysis products partially due to the fallback after the
special demand arose before the consumption tax rate hike. The Pharmaceutical Sales Division gained solid net sales
thanks to an increase in newly adopted drugs particularly for oral and external use. This is partly because hospitals
subject to diagnosis procedure combination (DPC) and dispensing pharmacies promoted a switch to generic drugs
following the revision of medical fees led by the government’s generic drug promotion measures. Such development
offset a decline in unit prices of drugs due to a revision of their wholesale prices (selling prices to wholesale dealers)
following the revision in drug prices in April 2014.
Overseas sales, on the other hand, were robust because the export profitability significantly improved thanks toreinforced marketing activities of the products manufactured at new overseas plants and dialysis products as well as the
yen's depreciation against the U.S. dollar and the Euro. In addition, the price raise aimed at profitability improvement
worked well as the measure to cope with the depreciation of emerging market currencies. Furthermore, the firmly rooted“local production for local consumption” system and community-based direct sales activities resulted in a substantial
growth in sales and profits from the same period of the previous year. By product, we have enhanced dialysis product line,
and consequently sales of the related products such as artificial kidneys (dialyzers) showed a strong increase. New
overseas plants (in India, Indonesia and Bangladesh) further stabilized their production and sales of the products
manufactured at these plants increased steadily particularly in their countries and the neighboring regions.
As a result, net sales of this business increased by 5.9% from the same period of the previous year to 60,097 million
yen.

-2-

(ii)

Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business, we have promoted finely-tuned sales activities to win contracted businesses

by offering various contracted services such as contracted development and support for value adding initiatives, inaddition to our conventional contracted manufacturing service. We have also worked to expand the contracted
manufacturing business through joint development with generic drug divisions and new drug development divisions ofleading pharmaceutical manufacturers inside and outside of Japan. Furthermore, the self-developed blockbuster syringe
preparations, shipment of which started at the end of the previous fiscal year, contributed to the solid sales of thissegment.
Sales of pharmaceutical containers as well as devices related to pharmaceutical preparation and administration werestrong thanks to our efforts to offer containers and systems suitable to each pharmaceutical product. Such efforts weremade to meet various needs in the medical front, including small-volume bags for antimicrobial agents and osteoporosis
drugs, materials for pre-filled syringes, etc., on top of rubber stoppers for pharmaceutical and vaccine use and containers
for kit products. We developed the containers and systems by ourselves or through joint development withpharmaceutical manufactures based on our processing technologies for plastics, rubbers, and metals. In addition, under
the government’s policy to curb medical expenses, we have worked together with domestic and foreign pharmaceuticalmanufactures in enhancing comprehensive lifecycle management of pharmaceutical products, taking into consideration
the development of combination products, self-injection systems, and dosage form/administrating path modification in the
future.
As a result, net sales of this business increased 17.0% from the same period of the previous year to 14,117 million yen.

(iii) Glass-Related BusinessIn the Glass-Related Business, adding to our conventional glass containers for medical use, we have developed
high-value added vials to support diverse injectable formulation with a high level of quality requirements. We also
improved our manufacturing facilities and environment for the stable supply of these products.
In the three months of the fiscal year under review, we announced the processing technique of vials with low alkali
elution to the medical and pharmaceutical industries. Meanwhile, we also set up the “Biwako Factory,” a state-of-the-art
plant for glass containers for domestic medical use, with the purpose of further improving our quality assurance system
for good manufacturing practice (GMP). Under the system, we have established the production and sales setup enabling
the stable supply of high-quality glass containers for medical use required by pharmaceutical manufacturers. Overallsales of the Glass-Related Business slightly declined from the same period of the previous year, but sales of high-value
added vials and large-bore vials steadily grew in the field of vials, the glass containers for medical use, thanks to gaining
new demands.
Among other glass-related products, sales of automotive electric bulbs showed a solid growth partially due to the effectof quality improvement, while sales of glass for thermos bottles decreased from the same period of the previous year due
to a decline in exports and weak domestic demand.
As a result, net sales of this business decreased 2.7% from the same period of the previous year to 1,166 million yen.

(iv) Other BusinessAmong other business, sales from the real-estate rental business were 43 million yen (down by 26.15% from the same
period of the previous year).

(2) Analysis Concerning Financial Position
Analysis Concerning the Conditions of Assets, Liabilities and Net Assets
Total assets decreased by 14,047 million yen from the end of the previous year to 605,607 million yen. Current assets
decreased by 10,021 million yen primarily due to a decrease of 9,684 million yen in cash and deposits, and noncurrent
assets decreased by 4,025 million yen primarily due to a decrease of 7,018 million yen in other of investment and otherassets.
Total liabilities decreased by 12,970 million yen from the end of the previous year to 470,723 million yen. Current
liabilities decreased by 7,426 million yen primarily due to an decrease of 9,243 million yen in income taxes payable, andnoncurrent liabilities decreased by 5,543 million yen primarily due to a decrease of 5,497 million yen in long-term loans-3-payable.
Total net assets decreased by 1,077 million yen from the end of the previous year to 134,883 million yen. Shareholders’equity decreased by 1,143 million yen and accumulated other comprehensive income increased by 191 million yen.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
We expect that the global economy will continue to be on the gradual recovery trend. Similarly, in Japan, economic
activities will continue to gradually improve amid the easing of the fallback after the last-minute surge in demand before theconsumption tax rate hike.
Even under such circumstances, the Nipro Group will work to improve profits through its continued efforts to expand
sales and reduce production costs.
At this moment, we have not made any revision to the forecast of consolidated financial results for the year ending
March 31, 2015, which was announced on May 14, 2014.

2. Summary (Other) Information(1) Changes in Significant Consolidated Subsidiaries
N/A(2) Accounting Treatments Simplified or Unique for Preparation
N/A(3) Changes in Accounting Policies and Accounting Estimate and Restatement(Change in Accounting Policies)
Application of the Accounting Standard for Retirement Benefits and its Guidance
From the first quarter of the consolidated fiscal year under review, we adopted the “Accounting Standard for
Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012; hereinafter referred to as the “Retirement Benefits
Standard”) and the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012;
hereinafter referred to as the “Retirement Benefits Guidance”) with regard to the provisions specified under the main clauseof paragraph 35 of the Retirement Benefits Standard and paragraph 67 of the Retirement Benefits Guidance. The
calculation method of retirement benefit obligations and service costs was reviewed, the period attribution method of the
expected amount of retirement benefits was changed from a straight‐line attribution to a benefit calculation standard andthe decision method of the discount rate was changed from the way in which the number of years approximate to theaverage remaining service period of employees is used for the period of bonds that serves as thebasis for determining

the discount rate to the way in which a single weighted average discount rate is used to reflect the expected payment
period of retirement benefits and the amount for each expected payment period.
In applying the Retirement Benefits Standard and its Guidance, the effect of the changes in the calculation method ofretirement benefit obligations and service costs was adjusted in retained earnings at the beginning of the first quarter of theconsolidated fiscal year under review according to the transitional treatment set forth in the paragraph 37 of the Retirement
Benefits Standard.
As a result, net defined benefit liability decreased 150 million yen and retained earnings increased 97 million yen at the
beginning of the current quarterly period under review. This change had no impact on operaing income, ordinary income andincome before income taxes and minority interests in the current quarterly period under review.

-4-3. Consolidated Financial Statements(1) [ Quarterly Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2014
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Bulidings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation and impairment loss
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-5-

As of
June 30, 2014

84,957103,179
59,517
10,96820,0007,354
12,154(2,010)296,119

75,272103,218
60,108
10,406
20,6495,216
13,202(1,976)
286,098

158,109(77,025)
81,083
192,277(135,012)
57,26523,3672,409(1,507)902
20,53437,683(29,242)8,440
191,593

161,380(76,171)
85,208
195,470(137,564)
57,905
21,141
2,341(1,482)859
22,02638,152(29,739)
8,413
195,554

28,493443
13,27842,21627,178418
13,926
41,52365,50798
8,453
18,535(2,870)89,724
323,534
619,654

65,880337
7,542
11,516(2,846)82,430319,509605,607

(Millions of yen)
As ofMarch 31, 2013
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Current portion of convertible bond-type bonds
with subscription rights to shares
Lease obligations
Accounts payable-otherAccrued directors' bounuses
Income taxes payable
Provision for bounuses
Provision for directors' bounuses
Provision for loss on business liquidation
Notes payable-facilities
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Provision for directors' retirement benefits
Provision for loss on litigation
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

-6-

As of
June 30, 2014

45,661
127,384
10,0004,315

47,941
130,641
10,0004,315

14,895

14,895

949
8,563
415
10,734
3,516
123
2,438
2,897
18,820250,714

901
7,853
－
1,491
2,244
125
－
3,683
19,194
243,287

45,832
177,004
1,510
1,976
4,042
449
284
1,878
232,979
483,694

45,540171,506
1,412
1,934
4,186
447
280
2,127
227,435
470,723

84,397688
52,567(17,999)
119,654

84,397688
51,388(17,964)
118,511(7,443)38
13,535(357)
5,772
10,533
135,960
619,654(5,014)(17)
11,317(321)
5,964
10,408134,883
605,607(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement of Comprehensive Income]Quarterly Consolidated Statements of Income(Amount: million yen)
FY2013 first three months(From April 1, 2013
to June 30, 2013)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on negative goodwill
Compensation income
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Structural integration expenses
Loss on sales of investment securities
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

FY2014 first three months(From April 1, 2014
to June 30, 2014)

70,09350,06420,02917,4942,534

75,42453,09722,327
19,526
2,801

221
940
1,461
322
2,946

179
827
－
283
1,289

971
－
－
187
1,158
4,322

1,030
522
40
351
1,944
2,146

199
1
4
570
18
52
846

24
－
－
28
2,535
25
2,613

17
30
－
14
62
5,106
2,361
261
2,622
2,483
42
2,441

19
2
1,233
46
1,301
3,458
545
1,606
2,152
1,306
54
1,252

[Qarterly Consolidated Statements of Comprehensive Income](Amount: million yen)
FY2013 first three months(From April 1, 2013
to June 30, 2013)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-7-

FY2014 first three months(From April 1, 2014
to June 30, 2014)

2,483

1,306

11,364－
10,506－
21,871
24,354
23,777
577

2,428
(55)
(2,524)
36
(114)
1,191
1,443
(251)

(3) Notes Regarding Consolidated Financial Statement(Notes regarding going concern)
N/A(Notes regarding significant changes in the amount of shareholders’ equity)
N/A(Segment Information)Ⅰ

FY2013 (From April 1, 2013 to June 30, 2013)

1.

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

PharmaceuticalRelated

GlassRelated

Total

Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
Statements ofIncome(Note.3)

Net sales(1)Sales to third parties

56,764

12,0701,199

70,03458

70,093－70,093(2)Inter-segment sales
and transfers

308

1,787

136

2,233

10

2,243

(2,243)－

Total

57,073

13,858

1,336

72,26868

72,336(2,243)70,093

Segment profit

3,634

2,128

143

5,906

54

5,961

(3,426)2,534(Notes)
1.
2.

3.
2.

“Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
Adjustment for the segment profit of (3,426) million yen includes elimination of inter-segment transaction of(1,113) million yen and corporate cost of (2,313) million yen. Corporate cost consisted primarily of general andadministrative expenses and research and development cost which do not belong to the reporting segment.
Segment profit is adjusted to the operating income on the consolidated statements of income.

Information about Impairment Loss on Fixed Assets and Goodwill by Reportable Operating Segment(Significant Change in Goodwill)
Regarding Medical-Related Business, we acquired the share of Nichihos Co., Ltd. and its 10 subsidiaries toinclude them in the scope of consolidation. In accordance with it, goodwill increased 6,851million yen from the endof the previous year.

-8-

Ⅱ
1.

FY2014 (From April 1, 2014 to June 30, 2014)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalRelated

PharmaceuticalRelated

GlassRelated

Total

Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
Statements ofIncome(Note.3)

Net sales(1)Sales to third parties

60,097

14,117

1,166

75,38143

75,424－75,424(2)Inter-segment sales
and transfers

335

2,030

159

2,525

8

2,534

(2,534)－

Total

60,432

16,147

1,326

77,907

52

77,959(2,534)75,424

Segment profit

3,353

2,978

146

6,479

50

6,528

(3,727)2,801(Notes)4.
5.

6.

“Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
Adjustment for the segment profit of (3,727) million yen includes elimination of inter-segment transaction of (927)
million yen and corporate cost of (2,799) million yen. Corporate cost consisted primarily of general andadministrative expenses and research and development cost which do not belong to the reporting segment.
Segment profit is adjusted to the operating income on the consolidated statements of income.

2. Changes in Reportable Segments
The calculation method of retirement benefit obligations and service costs in business segment was changed following
the changes in accounting policy.
This change had no impact to profit and loss.

3. Information on Impairment Loss on Fixed Assets and on Goodwill by Reportable Segment
N/A-9-