Consolidated Financial Statements

November 21, 2005
For the Six-Month Period ended September 30, 2005 (Fiscal Year Ending March 31,2006)
Company name: NIPRO CORPORATION
Stock Exchange listed:Tokyo and Osaka
Code No:
8086
Head office location:
Osaka, Japan(URL: http://www.nipro.co.jp/)
Representative:
Minoru Sano, President and Representative Director
Contact:
Akihiko Yamabe, Director, General Manager of Accounting andCorporative Planning Division
TEL (06) 6372-2331
Date of the meeting of the Board of Directors for approval of the financial statements: November 21, 2005
Name of related company: Sanri Kosan Co., Ltd. (Code no: N/A)
Percentage of voting rights of Nipro Corporation held by related company: 20.6%
Adoption of U.S. GAAP: N/A

1.

Consolidated Results for the Six months ended September 30, 2005 (From April 1, 2005 to Sep. 30, 2005)(1) Consolidated Results of Operations
Net Sales(Note: Amounts are truncated to 1 million yen)
Operating Income
Recurring Income

Millions of yen%

Millions of yen%

Millions of yen%

101,952
95,683
192,320

6.6
4.0

6,195
6,019
10,404

2.9
6.0

6,206
5,589
8,685

11.0
32.0

Six months ended Sep.30, 2005
Six months ended Sep.30, 2004
Year ended March 31, 2005

Earnings
per Share

Net Income

Diluted Earnings
per Share

Millions of yen

%

Yen

Yen

2,034
3,776
4,518

(46.1)
100.1

32.01
59.37
69.37

-

Six months ended Sep.30, 2005
Six months ended Sep.30, 2005
Year ended March 31, 2005
Notes: 1. Equity in loss of affiliate:

Six months ended Sep.30, 2005: (319) million yen
Six months ended Sep.30, 2004: (382) million yen
Year ended March 31, 2005:(741) million yen
2. The weighted average number of outstanding shares for the period (consolidated) :Six months ended Sep.30, 2005: 63,559,272 shares Six months ended Sep.30, 2004: 63,607,103 sharesYear ended March 31, 2005:
63,596,799 shares
3. Accounting method: Changed
4. Percentages in the above table for Net Sales, Operating Income, Recurring Income and Net Income represent changes from thecorresponding six month period of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets
Six months ended Sep.30, 2005
Six months ended Sep.30, 2004
Year ended March 31, 2005
Note:

Shareholders’EquityMillions of yen

Millions of yen

301,248
283,150
293,748

101,790
93,652
96,700The number of outstanding shares at the end of the period (consolidated):Six months ended Sep.30, 2005: 63,549,130 sharesYear ended March 31, 2005:
63,565,537 shares

Shareholders’Equity
per Share

Ratio of Shareholders’Equity to Total Assets
%

Yen

33.8
33.1
32.9

1,601.76
1,472.64
1,519.58

Six months ended Sep.30, 2004: 63,594,527 shares(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

2,391
7,494
17,375(13,106)(4,772)(12,627)(6,138)
4,774
7,088

37,46049,82553,734Six months ended Sep.30, 2005
Six months ended Sep.30, 2004
Year ended March 31, 2005

Cash and cash
equivalents(4) Matters related to scope of consolidation and application of equity method
Number of consolidated subsidiaries:
Number of unconsolidated subsidiaries accounted for by the equity method:
Number of affiliate company accounted for by the equity method:

1801(5) Change of reporting entities
Number of consolidated companies
Number of companies accounted for by the equity method2.

Added:
Added:

30Removed:Removed:00Projected Consolidated Financial Results for the Year ending March 31, 2006 (From April 1, 2005 to March 31,
2006)

Net Sales

Recurring Income

Millions of yen

Millions of yen

Net Income
Millions of yen

Year ending March 31, 2006
205,000
10,5004,400(Reference) Projected earnings per share for the year ending March 31, 2006: 67.55 yen* The projections shown above are prepared based on information available as of the issuing date of this report.
The actual results may differ from the projected figures due to various factors. Concerning the matters related tothe above projections, please refer to the Page 9.

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Corporate GroupOur group consists of the Reporting Company (“the Company”), its 21 subsidiaries and 1 affiliate, andis primarily engaged in manufacture and sale of medical equipment, pharmaceutical products and glassand material products as well as management of supermarkets and drugstores.
Positioning of each company in connection with the businesses of our group and the relation to thebusiness segments are as follows:<Medical 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), Fuzhou Nipro Co., Ltd. (China), Nipro(Shanghai) Co., Ltd. (China) and Nipro Medical LTDA. (Brazil) purchase some of raw
materials and machinery for their production from the Company, manufacture medical
equipment, sell through the Company and its subsidiaries as well as locally on their own.
Nipro Europe N.V. (Belgium), Nipro Medical Corporation (U.S.A.), Nipro Medical Panama
S.A. (Panama), Nipro Medica de Mexico S.A. DE C.V. (Mexico), Nipro Medical of Puerto
Rico Inc (Puerto Rico), Nipro Asia Pte. Ltd. (Singapore) and Nipro Trading (Shanghai) Co.,
Ltd. (China) sell medical equipment etc. in the areas of their locations.
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 manufactureand sell pharmaceutical products. Tohoku Nipro Pharmaceutical Corporation manufactures
pharmaceutical products.
Bipha Corporation, an affiliate accounted for by the equity method, is engaged inresearch and 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) manufactures internal glass
sections of vacuum flask and other glass products, and sells locally as well as exports.
<Supermarket Division>
Nissho Corporation operates supermarkets in the Keihanshin region, selling fresh
produce, etc.
Nissho Drug Co., Ltd. carries out drugstores mainly in the Hanshin region, retailing
medicine and general grocery, etc.
<Other>
The Company manufactures (purchases, in some cases) and sells machinery for
manufacture of medical equipment, etc.
The Company and Nissho Corporation 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:-2-

(Domestic)(Overseas)
Medical Division

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

Ltd.

◎Nipro Medical Industries, Ltd.

◎Fuzhou Nipro Co., Ltd.
◎Nipro (Shanghai) Co., Ltd.
◎Nipro Medical LTDA.

Pharmaceutical Division<Sale>◎Nipro Europe N.V.
◎Nipro Medical Corporation◎Nipro Medical Panama S.A.
◎Nipro Medica de Mexico, S.A.

<Manufacture and Sale>◎Nipro Pharma Corporation◎Nipro Genepha Corporation<Manufacture>

DE C.V.

◎Tohoku Nipro◎Nipro Medical of Puerto Rico,Inc○Nipro Asia Pte. Ltd.
○ Nipro Trading (Shanghai) Co.,

<Development,
and Sale>

Manufacture□Bipha Corporation
Glass & Materials Division<Manufacture and Sale>◎Shinwa Shoji Co., Ltd.

Nipro Corporation

Pharmaceutical Corporation

Ltd.

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

Glass & Materials Division<Manufacture and Sale>◎Shanghai Nissho Vacuum Flask

Supermarket Division

Refill Co., Ltd.

<Supermarket management>◎Nissho Corporation<Drugstore management>

Supply of products andmerchandises◎Nissho Drug Co., Ltd.

Supply of raw materials
Other

Other transactions<Non-life insurance agency>○Nissho Insurance Services Co.,
Ltd.

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

-3-◎

Consolidated subsidiary○

Unconsolidated subsidiary□

Affiliate accounted for by theequity method△

Other related company

Management Policies
1. Basic Policies of Management
Since our foundation, we have based ourselves on “technology” and aimed at manufacturing better
products at lower costs. We set our management philosophy in contributing to the society throughcorporate activities, especially focusing on developing new products in the fields of medicals andpharmaceuticals.
As a management structure in pursuit of compatibility between “stability” and “growth” that is mostimportant for any company, we implement the “performance-linked remuneration system” that is the ruleof profit sharing among shareholders, employees and management, and carry out active business
operations, holding the employees responsible for boosting the performance of individual businesses.

2. Basic Policies on Distribution of Profits
Our policy is that 50% of the non-consolidated net income is to be distributed to the shareholders.
Employees’ bonuses are determined according to the business performance of the division where theemployees belong, and the bonuses of the directors and the statutory auditors 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 establishing the firm management basis and long-term business developments,
so as to ensure stable profits for the future.

3. Position and Policy on Reduction of Trading Unit of Stock
We consider that reduction of trading unit of stock will promote individual investors into the market
and lead to the vitalization of securities market. In view of the large amount of implementation costs etc.,
we will consider to reduce the reduction of trading unit at the occasion of transition to the company
without share certificate.

4. Target Management Indicators
Our performance targets are to achieve 300 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.
As a fundamental perspective for achieving these targets, we will continuously strengthen researchand development, production capacity, and sales force to expand the business, while seeking the mutual
complement among Medical, Pharmaceutical, Glass & Materials and Supermarket divisions.
Especially as for research and development, we will progress research of cutting-edge medical
technologies, such as regenerative medicine and recombinant pharmaceutical formulations, etc. basedon a long-term view. On the other hand, for strengthening production capacity, we will utilize andexpand domestic and overseas production bases of medical equipment, and expand the production
facilities for contract manufacturing of the pharmaceutical business.

5. Medium- and Long-term Management Strategies
In the Medical division, we, as a general medical equipment manufacturer, will seek to enhance theadded-value of Nipro brand and increase the market share by strengthening the sales in the field of
dialysis-related products such as dialyzers and maintaining the leading share in the market, as well as
forging ahead to the field of advanced medical technologies such as catheters and artificial organs,reinforcing the product line-up, and conducting active sales and marketing in the overseas markets.
In the Pharmaceutical division, we devote efforts to developments of pharmaceutical products andresearch of new formulation technologies in the fields of kidney disease, blood, and nutrition infusion. At
the same time, we will promote commercialization of kit products that integrate container, device, drug
and solution, expand sales of double-bag kits and powdered dialysate solutions, launch the-4-infusion-related business, focus on development of products that would hold the leading share, andexpand aggressively the business of generic products as a manufacturer.
In the Glass and Materials division, we will increase competitiveness by reducing manufacturing costsof various glass products based on our peerless glass processing technologies, conduct global sales
activities and strive to secure stable profit.
In the Supermarket division, we will strive to make attractive product offerings for fresh food andmedicine etc. and bear closely on the daily needs of neighborhood customers.

6. Issues and Challenges that the Group Faces
In the domestic business of the Medical division, we will focus on dialysis-related products. In
addition to the existing products such as dialyzers, blood tubing sets, substitution fluid for hemofiltrationand hemodiafiltration, powdered dialysate solutions and dialysis machines, we launched pre-filled
Heparin (pre-filled syringe of Heparin). We will endeavor to react to the market needs promptly, develop
and market new products, improve the product quality, strengthen sales activities and increase themarket share. In the field of disposable products, we will make efforts to increase our market share of
injection and infusion-related products such as infusion sets and syringes, as well as to develop, market
and promote new products such as intravascular catheters.
With regard to the cardiovascular products, we will enlarge the product line-up by introducing new
products such as PTCA balloon and stent, reinforce marketing and sales forces, and increase our market
share. In addition, as for the examination-related products, we will market and promote 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 are increasingly required to adjust prices of our products, in order toreact to the tide of reducing medical expenses in overseas countries. Nowadays, medical-related
information, such as the news of medical malpractice, spreads worldwide simultaneously, and reaches
users of the products very fast. The needs of the market is shaped mainly by users. We are also ,notto mention the safety precaution, required to structure the business system linking directly to users to gettheir demands constantly, therefore the direct distribution sales is now getting important. Since last year,
we have been improving and opening new branches, we will be continuing to make more efforts to enrich
our customer service.
In the dialysis-related business, we are required to promote dialysis machines for the stable trade ofdisposable products. In terms of dialysis machines, we are facing the urgent necessity to acquire theevery required license in each area. In terms of diabetes-related products, in addition to blood drawing
products with safety precaution , we will endeavor to develop diagnostic products
In terms of artificial lung we introduced this year, which has been already launched to the market, we
will promote to formulate the trade system of both our own and introduced products in order to expand
our line of internationally competitive products.
In the pharmaceutical division, we aims to increase in product numbers of our kit products such as“liquid-and-powder” double-bag kits of antibiotics and pre-filled syringes, as well as to improve theproducts including prevention measures of malpractice.
In terms of oral drugs, while we increase our own generic products to a large extent, we focus on the
co-development of oral drugs. Furthermore we intend to develop pharmaceutically contrived products,
for instance, drugs with prominent easiness to drink. In addition, we will make efforts for early realizationof pharmaceutical products in application of recombinant human serum albumin such as artificial bloodand Drug Delivery System (DDS) and products related to recombinant protein for the renal diseases.
We will endeavor to expand our pharmaceutical business by actively developing injection drugs including
kit products and oral drugs.
In the Glass and Materials division, we will continue to innovate glass-processing technology, develop
applied uses of glass tubes, and expand the overseas market and production of the glass pre-filled
syringes. In terms of the glass for lighting purposes, we will strive to increase sales of glass materials
for LCD backlights and glass-related products in the situation of expanding business of FPD (Flat Panel
Display).
In the Supermarket division, we state the principle based on the “customers’ satisfaction”, promote
the management of respective distinctiveness, by means of expanding variety of commodities oncustomers’ demands and improving management with the participation by all members of staff. As aresult, we aim at locally dominating stores in each area with the differentiation from other competitors.
We strive to generate more profit by renovation of existing stores, adopt the LSP (Labor Scheduling
Program) to improve the operating efficiency.
In terms of drugstores, we enhance the specialty of healthcare and cosmetic section, reinforce theassortment of groceries and other goods, and also appeal to prices in order to improve.

-5-7. Basic Perspective on Corporate Governance and Implementation of Related Measures(1) Basic Perspective on Corporate GovernanceAs the economy is becoming global and borderless and the business environment that surrounds
Japanese companies is changing rapidly, we have seen various scandals in recent years, and the serious
management risks that might threaten corporate existence are increasing and becoming obvious.
In order to cope with such changes in management circumstances, it is necessary to strengthen the
management structure for consideration of various stakeholders.
We consider improvement of corporate governance to be one of the most critical issues in view ofcorporate social responsibility (CSR), and we endeavor to strengthen our administration structure under
the division system and to make sound and efficient management.

(2) Implementation of Measures Related to Corporate Governancea. Current Condition of the Corporate Governance System
・ Our management administration organization related to the Company’s management decision
making, policy execution, and supervision is basically in accordance with the systems of board of
directors and board of corporate auditors, as set forth in the Japanese Commercial Code.
Specifically, we have established a management framework with self-sufficient business divisions,which clearly define the responsibilities and enhance the administration structure.
・ The board of directors meeting is held in principle once a month in order to make important
decisions and report and discuss execution of business.
・ All of the current three corporate auditors are outside auditors as provided in the paragraph 1 of
the Article 18 of “Law for Special Exceptions to the Commercial Code Concerning Audit etc. of
Joint Stock Corporations (kabushiki-kaisha)”. Currently no outside directors are appointed, andthere is no full-time staff for outside auditors.
b. Status of Internal Control System and Internal Audit
・ The Company holds the corporate management meeting regularly once a month in order todiscuss and decide on the important issues about business execution. The participants of thismeeting are the directors and corporate auditors of the Company as well as the representatives ofthe major group companies, and they discuss the progress in business activities and theoutstanding issues and make swift decision-makings.
・ The corporate auditors perform their audit in accordance with the audit policy and assignment
decided at the board of corporate auditors, e.g. participating in the important meetings such asboard of directors meeting, hearing from employees, and inspecting important documents. The
corporate auditors hold the board of auditors meeting regularly or as occasion demands forexchange of opinions and discussion.
・ The Company also set the “Internal Audit Section” that is independent of the organization ofbusiness operations. The internal audit section performs fair internal audit according to the audit
policy and the annual schedule, and strive for observance of laws and ordinances, check of
misconduct and errors, and maintenance of internal control system, in cooperation with operational
audit by corporate auditors and accounting audit by certified public accountants.
・ The names of the certified public accountants who performed the accounting audit for theCompany are as follows:
Audit firm:
Tomei Audit Corporation
Certified public accountants:
Nobuhiro Nakamichi and Toshio Nishikawac.

Status of Maintenance of Risk Management Structure
We set up the Management Risk Control Committee in order to control the management risks andto promote compliance with laws, ordinances and corporate ethics. We also set up the Rewards
and Punishments Committee, whose chairman is the President of the Company, for the purpose ofmanaging commendations and penalties.

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<Diagram of Corporate Governance Structure>
Shareholders Meeting
President(Appointment)

Accounting
Auditor(Corporate
Auditors)(Directors)

Board ofAuditors

Board ofDirectors

Committees

Operational
Audit

Directors

Management
Risk
ControlCommittee

Division Managers
General Managers,
Section Managers,
etc.

(Decision Making)Accounting
Audit

Third
partiessuch aslawyersandaccountants etc.

Audit ofDirectors’
policyexecutiond. Personal, Capital or Transactional Relationships, and/or Other Interests Between the Company
and Its Outside Directors and Auditors
There are no such special relationships between the Company and its outside auditors.
e. Implementation in the Past Year of Measures to Strengthen the Company’s Corporate Governance
We have adjusted the organization in compliance with revision to the Pharmaceutical Affairs Law,
enforcement of Personal Information Protection Law, and other recent amendments etc in laws.
We also made and distributed a revised version of “the Code of Conduct for Compliance with Laws,
Ordinances and Corporate Ethics” and enlighten our employees by regularly placing articles in thecorporate newsletters and training for the employees. We also properly treated and solved thecases reported through our internal notification system.

8. Parent or Related Company(1) The Name etc. of Parent or Related Company(As of September 30, 2005)
Name
Sanri Kosan Co., Ltd.

Attribute
The listed company’s relatedcompany

Percentage of voting
rights held by parent
or related company

20.62 %

Stock exchange etc. where theshares of parent or relatedcompany are listed

N/A(2) Roles Assigned to the Listed Company in the Group of Parent or Related Company
Sanri Kosan Co., Ltd., a related company, does not involve in the Company’s management, and theCompany operate its management independently.
(3) Transactions with Parent or Related Company
N/A

-7-

Business Results and Financial Conditions
1. Business Results(1) Summary of Overall Business and Results by Segments
Japanese economy for the current interim period under review, in spite of decelerating foreign
economy and high crude oil price, remained in a expectation of slight expansion led by individual
consumption and capital investments.
Under such circumstances, we have continued to focus on the development of new products andreinforced production capacity and sales capability to improve business performance.
As a result, the consolidated net sales for the period under review increased by 6.6% to 101,952
million yen, the consolidated operating income increased by 2.9% to 6,195 million yen, andconsolidated recurring income increased by 11.0% to 6,206 million yen
On the other hand, net income decreased by 46.1% from the same period of the previous year to
2,034 million yen, due to the increase of extraordinary loss owing to the impairment loss on fixed
assets.
Business situations by segment are as follows below.
a. Medical division
For the domestic business, its environment has been severe as more hospitals started jointpurchase arrangement for consumables, and competitions became harder, which caused the
downward pressure on prices.
Under such circumstances, we sought to enhance the efficiency of sales activities and strengthen
the sales bases. We also made efforts to develop and launch new products in the fields of dialysis,
injection and infusion, treatment on circulatory organs 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.
On the other hand, as for the international business, in terms of the sales of Nipro-branded
products, we achieved, although market is rapidly changing, significant result from the reinforcementof foreign branches and promotion of direct sales organization. OEM business also remained steady.
OEM business for the products related to the dialysis, blood connection and diabetes remained
steady and boosted its sales up. Sales of the Nipro-branded products also increased steadily for theabove-mentioned products as well as injection-related products, as a result of reinforcement of foreign
branches and the promotion of direct sales organization. Due to the hard change of the market,
however, it was quite difficult to obtain the appropriate ratio of profit, comparing with net sales.
As a result, net sales of the division increased by 9.6% to 44,745 million yen.
b. Pharmaceutical division
In the Pharmaceutical division, the environment of market remained very severe, due to thegovernmental controls to suppress medical expenditures such as promotion of diagnosis-procedure
combination ( DPC ) and to the intensified price competition.
Under such circumstances, we strove to increase sales of powdered dialysate solutions and kit
product of substitution fluid for hemofiltration and hemodiafiltration. We also exerted ourselves toexpand sales of “liquid-and-powder” double-bag kits, pre-filled syringe kits, and plastic-ampoules, as aresult, business of this division showed a prosperous growth.
As a result, net sales of the division increased by 24.0% from the same period of the previous year
to 16,138 million yen.
c.

Glass & Materials Division
In the Glass & Materials Division, the demands of medical use glasses are declining due to thetransformation of reservoir, and net sales of vacuum bottle glasses decreased due to the reduction ofdomestic demands. On the other hand, the business related to glasses for lighting purpose wassustained by increasing sales of glasses for small electric bulbs for automobiles and glasses for LCD
backlight.
As a result, net sales of the division decreased by 3.3% to 5,771 million yen.

d. Supermarket division
In the retail business, individual consumption has remained slackening as if an ordinary state. In
addition, the business was affected by bleeding competition of refurbishing and opening new stores,
as well as affected by drop in the number of customers and unit purchase per customer. As a result,net sales remained in severe situation.
Under the circumstances, we aimed primarily to improve customers’ satisfaction and produce local
and familiar stores by means of gathering and analyzing customers’ demands, introducing part-timeworkers’ suggestion, strengthening distribution of locally-produced-and-consumed vegetables,
reacting to the tide of aging population combined with the diminishing number of children, imposing
more responsibility on each store, and promoting Reward Cards to more customers. We endeavored-8-

to enhance the efficient management to generate more profit. While the number of customers andgross margin maintained the level of previous year, however, net sales in the current period
decreased from the previous period due to the factors mentioned above.
On the other hand, in the drug store division, while net sales remained at the same level due toopening of new stores, however, by means of enhancing the sales of high–margin products, such as,
medicines, or health food products, net income achieved certain growth in the current period.
As a result, net sales of the division decreased by 2.9% to 34,670 million yen.

e. Other division
Net sales of this division, consisting mainly of sales of machine for manufacture of medical
equipment and real estate rentals, increased by 20.0 % to 627 million yen.

(2) Prospects for the Fiscal Year Ending March 31, 2006
The business environment is anticipated to remain severe, with concerns about appreciation of
crude-oil prices and rise of interest rate.
However we will strive to improve the business performance by focusing on development of new
products and reinforcement of production capacity and sales capability.
For the year ending March 31, 2006, we project the consolidated net sales of 205,000 million yen(increase by 6.6% compared with the previous period), recurring income of 10,500 million yen (increaseby 20.9%), and net income of 4,400 million yen (decrease by 2.6%).
Projections on net sales by segments are as follows:
Medical division:
88,000 million yen (increase by 6.7%),
Pharmaceutical division:
35,700 million yen (increase by 36.2%)
Glass and Materials division: 11,400 million yen (decrease by 2.3%)
Supermarket division:
68,600 million yen (decrease by 3.2%)
Other division:
1,300 million yen (increase by 18.1%)

2. Financial Conditions(1) Analysis of the conditions of assets, liabilities, shareholders’ equity and cash flows
Total assets increased by 7,499 million yen from the end of the previous period to 301,248 million
yen. Current assets decreased by 8,817million yen to 126,547 million yen, and fixed assets increased
by 16,317 million yen to 174,700 million yen. Main reason for the decrease in current assets was thatcash on hand and in banks decreased as a result of payments for the capital investments, and main
reason for the increase in fixed assets was the increase of buildings & structures, machinery,equipments, and vehicles, as a result of capital investments, as well as the increase of investment
securities due to the rise of prices in the stock market.
On the other hand, liabilities increased by 2,415 million yen to 197,855 million yen. Current
liabilities increased by 13,912 million yen to 110,154 million yen, but the fixed liabilities decreased by
11,497 million yen to 87,700 million yen, mainly due to the transfer of bonds between short-term andlong-term.
Shareholders’ equity increased by 5,089 million yen to 101,790 million yen. In this section, earned
surplus increased by 902 million yen to 33,083 million yen.
As for cash flows for the interim period, net cash provided by operating activities was 2,391 million
yen, net cash used in investing activities was 13,106 million yen, and net cash used in financing
activities was 6,138 million yen, and as a result, cash and cash equivalents was 37,460 million yen.
Net cash provided by operating activities mainly reflected interim net income before adjustment oftaxes and depreciation and amortization. Net cash used in investing activities reflected the paymentsof 11,566 million yen for acquisition of fixed assets, and net cash used in financing activities mainlyreflected the repayment of 5,424 million yen for long-term borrowings.

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(2) Trend of the cash flow indicators

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

Fiscal Year
ended
March. 31, 2005

Six Months
ended
Sept. 30, 2004

Fiscal Year
ended
March. 31, 2005

Six Months
ended
Sept. 30, 2005

33.9

33.1

32.9

33.8

35.5

36.2

38.3

36.0

7.3
9.4

9.2

7.1
10.3

3.1

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.

- 10 -

Consolidated Balance Sheets

PeriodAccount

Previous Interim Period(as of Sept. 30, 2004)
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
Consolidation adjustments

OthersInvestments and other assets

Investment securities
Long-term loans receivable
Deferred tax assets
Lease deposits
Other assets
Allowance for doubtful accounts

Total Assets

Current Interim Period(as of Sept. 30, 2005)
AmountRatio%
131,361

46.4(Unit: Millions of yen)Previous Period(as of March 31, 2005)
AmountRatio%
126,54742.0%
135,365

52,897

41,27056,15340,694
31,973
1,833
4,171
(208)

42,96337,146
1,975
3,510
(317)

40,14433,649
2,203
3,423
(209)

46.1

151,789

53.6

174,700

58.0

158,383

53.9

96,81634.2

106,74435.4

98,78833.6

41,94343,87940,71823,232
22,460
4,976
4,202

27,717
23,131
6,946
5,068

23,99022,839
7,232
4,007

921

0.3

2
918
54,052

0.4

115
964
19.1

37,177
2,496
225
11,696
3,088(632)
283,150

1,079

66,876301,248

0.3

2
939
22.2

49,5692,375
605
11,392
3,580
(646)
100.0

941

58,65320.0

41,7062,459
238
11,513
3,465
(730)
100.0

293,748100.0(Notes)(Previous Interim period) (Current Interim Period) (Previous Period)

1.Accumulated depreciation of tangible fixed assets
2.Discounted notes receivable

93,047 mil.yen
25 〃3.Obligations under guarantee contracts

2,455 〃

1,911 〃

2,183 〃

4.Pledged assets

14,371 〃16,259 〃16,500 〃- 11 -

102,035 mil.yen
272 〃

96,758 mil.yen
76 〃Consolidated Balance Sheets

PeriodAccount

Previous Interim Period(as of Sept. 30, 2004)
AmountRatio(LIABILITIES)Current liabilities
Trade notes and accounts payable

Current Interim Period(as of Sept 30, 2005)
AmountRatio%
92,193

32.6(Unit: Millions of yen)Previous Period(as of March 31, 2005)
Amount%110,15436.6%
96,241

27,68937,875
10,000
3,751
3,250
1,586

30,38540,56013,020
4,318
2,921
1,871

29,08440,443
3,000
4,614
3,493
1,405

Others

3,685
4,355

4,334
7,000
5,743

2,936
7,000
4,262

Fixed liabilities

95,696

Short-term borrowings
Current portion of bonds
Other payables
Accrued income taxes
Allowance for bonuses payable
Notes payable for plant andequipment
Commercial paper

Bonds

33.8

Ratio

87,70029.1

99,19832.7

33.8

29,00016,04026,00014,00041,5704,887

14,00041,461
9,596

14,00046,183
6,753

Other fixed liabilities

2,724
3,513

3,160
3,441

2,867
3,393

Total liabilities

187,889

66.4

197,855

65.7

195,439

66.5

1,609

0.5

1,602

0.5

1,608

0.6

28,66329,97233,060

10.1
10.6
11.7

28,66329,972
33,083

9.5
9.9
11.0

28,66329,97232,181

9.8
10.2
10.9

9,857

3.5

17,7555.9

12,7594.3(7,364)
(537)

(2.6)
(0.2)

(7,070)
(614)

(2.3)
(0.2)

(6,289)
(586)

(2.1)
(0.2)

Total shareholders’ equity

93,652

33.1

101,790

33.8

96,70032.9

Total liabilities, minority interests, andshareholders’ equity

283,150100.0

301,248100.0

293,748

100.0

Convertible type bonds with stockacquisition rights

Long-term borrowings
Deferred tax liabilities
Accrued pension and severance
cost(MINORITY INTERESTS)
Minority interests(SHAREHOLDERS’ EQUITY)

CapitalCapital surplus
Earned surplus
Valuation differences of othersecurities
Foreign currency translation
adjustments

Treasury stock(Notes)5. Number of treasury shares
Common share(Previous Interim period)(Current Interim period)(Previous Period)

283,978 shares

329,375 shares

312,968shares- 12 -

Consolidated Statements of Income
PeriodAccount

Previous Interim Period

Current Interim Period(Unit: Millions of yen)Previous Period(From April 1, 2004
To September 30, 2004)(From April 1, 2005
To September 30, 2005)(From April 1, 2004
To March 31, 2005)

AmountRatio%

AmountRatio%

AmountRatio%

Net sales
Cost of goods sold

95,683
69,146

100.0
72.3

101,952
73,729100.0
72.3

192,320140,072

100.0
72.8

Gross profit

26,53627.7

28,222

27.7

52,24727.2

20,51721.4

22,02621.6

41,843

21.8

6,019

6.3

6,195

6.1

10,404

5.4

873
58
112
531
171
1,303
808
382
111
5,589
1,268

0.9

1,277
78
246
641
312
1,266
769
319
177
6,206
112

1.2

849
124
204
173
346
2,567
1,594
741
231
8,685
1,245

0.4

Selling, general and administrative
expenses

Operating income
Non-operating income
Interest income
Dividend income
Exchange gain
OthersNon-operating expenses
Interest expenses
Equity in loss of affiliate
OthersRecurring income
Extraordinary gains
Reversion of allowance forbonuses

Governmental subsidies
Gain ion dsale of investment
securities

OthersExtraordinary losses
Loss on sale and disposal of fixed
assetsImpairment loss on fixed assets
Loss on disposal of inventories
Abnormal manufacturing cost
Amortization of transitional difference
from change in accounting standards ofpension and severance benefits

Retirement allowance
Others
Net income before adjustment oftaxes
Corporate, inhabitants andenterprise taxes
Adjustment for deferred taxes
Minority shareholders’ share in net lossof consolidated subsidiaries

Net income

1.4

5.8
1.3

1.2

6.1
0.1

46
-

53
19

0
-

1,108
113
350

17
22
2,436

1,108
136
1,271

0.3

2.4

105
20
137

176
1,920
45
98

368
167
344

38
48

101
93

76
314

1.3

4.5
0.6

0.6

6,508

6.8

3,882

3.8

8,659

4.5

3,011
(161)

3.1
(0.1)

2,645
(673)

2.6
(0.7)

4,900
(653)

2.5
(0.3)

118
3,776

0.1
3.9

124
2,034

0.1
2.0

106
4,518

0.1
2.4

- 13 -

Consolidated Statements of Surplus

PeriodAccount(Unit: Millions of yen)Previous Period

Previous Interim Period

Current Interim Period(From April 1, 2004
To Sept.30 2004)(From April 1, 2005
To Sept. 30,2005)(From April 1, 2004
To March 31, 2005)

AmountAmountAmount(CAPITAL SURPLUS)
Beginning balance of capital surplus

29,972

29,972

29,972Ending balance of capital surplus

29,972

29,972

29,972Beginning balance of earned surplus

30,61032,181

30,610

Increase in earned surplus
Net income

3,778
3,776

2,034
2,034

4,520
4,518

1

-

1

1,327
1,240

1,132
826

2,949
2,862

86

107

86

[ 2 ]
33,060[3]
198
33,083[2]
32,181(EARNED SURPLUS)

Increase in surplus due to inclusion of
new subsidiary in consolidation

Decrease in earned surplus
Dividends
Bonuses to directors and corporate
auditors[including bonuses to corporate
auditors]

Ending balance of earned surplus- 14 -

Consolidated Statements of Cash Flows(Unit: Millions of yen)
PeriodAccount

Previous Interim Period

Current Interim Period

Previous Period(From April 1, 2004
To sept.30, 2004)(From April 1, 2005
To Sept 30, 2005)(From April 1, 2004
To March 31, 2005)

AmountAmountAmountCash flows from operating activities

6,508
4,822
52
382

3,882
5,589
1,920
14
319

8,659
10,265
51
741

(39)
(170)
808
(518)
1,200
510
(1,391)(224)(1,377)
(86)

(18)
(324)
769
(526)
(2,389)(2,842)
604
(446)
(790)
(107)

57
(329)
1,594
413
1,329
(1,158)
76
(191)
1,160
(86)

(975)
9,498
121
(811)
292
(278)
(1,328)
7,494

83
5,738
284
(760)
411
(146)
(3,136)
2,391

(591)
21,992249(1,681)647(759)(3,072)
17,375(2,257)
2,183
(119)
1,737

(2,951)
1,660
(420)
58

(4,058)
4,622
(120)
1,737

(6,487)
146
(2)
27
0
(4,772)(26)(11,566)
171
(0)
34
(66)
(13,106)(15,070)
206
(2)
57
0
(12,627)

1,684(6,500)12,694(4,621)
2,979
(31)
(193)
(1,237)
4,774

(32)
300
(5,424)
(10)
(27)
69
(187)
(826)
(6,138)1,483
500
24,599(9,144)
2,979(10,000)(80)(391)(2,858)
7,088

Increase (decrease) in cash and cash equivalents

80
7,577

437
(16,415)(349)
11,486

Balance of cash and cash equivalents at the
beginning of the period

42,22853,73442,228

19

141

19

49,82537,46053,734

Net income before adjustment for taxes

Depreciation and amortization
Impairment loss on fixed assets
Amortization of consolidation adjustments

Equity in loss of affiliate
Increase (decrease) in allowance for doubtful
accounts

Interest and dividend income
Interest expenses
Exchange loss (gain)
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 andextraordinary 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 new
consolidated subsidiary
Payments for acquisition of fixed assets
Proceeds from sales of fixed assets
Lending of loans
Collections of loans receivable
Expenditures for other investments
Revenues from other investments
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
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
Payments for acquisitions of treasury stock

Proceeds for sale and lease backRepayments of finance lease obligations
Payments for dividends
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents

Increase in cash and cash equivalents due toinclusion of new subsidiary in consolidation

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

Basis of Preparation for the Consolidated Financial Statements
1. Scope of Consolidation
1) Consolidated subsidiaries: 18
・
・
・
・
・
・
・
・
・

Nipro Medical Industries, Ltd.
Fuzhou Nipro Co., Ltd.
Nipro Medical LTDA.
Nipro Medical Corporation
Nipro Medical Panama S.A.
Nipro Medical of Puerto Rico, Inc
Tohoku Nipro Pharmaceutical Corporation
Shinwa Shoji Co., Ltd..
Nissho Corporation

・
・
・
・
・
・
・
・
・

Nipro (Thailand) Corporation Ltd.
Nipro (Shanghai) Co., Ltd.
Nipro Europe N.V.
Nipro Diabetes Systems, Inc.
Nipro Medica de Mexico S.A. DE C.V.
Nipro Pharma Corporation
Nipro Genepha Corporation
Shanghai Nissho Vacuum Flask Refill Co., Ltd

Nissho Drug Co., Ltd.

Nipro Medical Puerto Rico, Inc was included in consolidation due to new foundation, Tohoku
Nipro Pharmaceutical Corporation was due to the company’s acquisition of the stocks, and Nipro
Genepha Corporation was due to the increase of its importance.
Note: Takeshima Pharmaceutical Co., Ltd amended its corporate name to Nipro Genepha
Corporation on April 1, 2005.
2) Unconsolidated subsidiaries: 3
The unconsolidated subsidiaries, Nissho Insurance Services Co., Ltd., Nipro Asia Pte. Ltd., andNipro Trading (Shanghai) Co., Ltd., are small-sized companies, whose combined total assets, net
sales, net income and earned surplus in the aggregate (averaged for recent 5 years) are not material
to the consolidated financial statements.
2. Application of Equity Method
Number of affiliate accounted for by the equity method: 1

Bipha Corporation

The equity method is not applied to the 3 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, Nipro (Thailand) Corporation Ltd. (Thailand), Fuzhou Nipro
Co., Ltd. Nipro (Shanghai) Co., Ltd., Shanghai Nissho Vacuum Flask Refill Co., Ltd. (China), Nipro
Medical LTDA. (Brazil), Nipro Europe N.V. (Belgium), Nipro Medical Corporation, Nipro Diabetes
Systems, Inc. (U.S.A.), Nipro Medical Panama S.A. (Panama), Nipro Medica de Mexico S.A. DE C.V.
(Mexico), and Nipro medical Puerto Rico (Puerto Rico) close their interim accounts on June 30.
Interim financial statements as of that date are used in preparing for consolidated interim financial
statements, and necessary adjustments are made to reflect significant transactions that occurred
between June 30 and September 30.
4. Accounting Principles and Practices
1) Valuation standards and methods for significant assets
a. 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
b. Inventories
Medical, Pharmaceuticaland Glass & Materials
divisions····························Valued at cost principally by the weighted average method.
Partially first-in first-out method is used.
Supermarket division········Valued at cost by the retail method- 16 -

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 allowancesa. 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.
b. Accrued bonuses·············· 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.
c. Accrued pension andseverance cost ················· An allowance is provided for employees pension andseverance payments based on the estimated amounts ofprojected benefit obligation and plan assets at the end of the
fiscal year.
Actuarial difference is expensed in the following fiscal years
after the year of such recognition, using the straight-line method
for five years.
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 Shareholders’ Equity
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 are excluded from revenues and expenses accounts.
5.

Range of cash and cash equivalent carried on the consolidated interim cash flow statement.
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.

(Change in Accounting Method)
Impairment accounting for fixed assets
Since this interim period, we have adopted “the Opinions on Accounting Standard for Impairment of
Fixed Assets” (issued by the Business Accounting Council of Japan on August 9, 2002) and “Guidelines forapplication of Accounting Standard for Impairment of Fixed Assets” (Accounting Standard Board Guideline
No.6 issued by the Financial Accounting Standards Board of Japan on October 31, 2003) The applicationof the new accounting standard reduced net income before adjustment of taxes by 1,920 million yen,
compared to the previous accounting method. Accumulated impairment loss is deducted directly fromeach relevant asset in accordance with the revised Regulations for Semiannual Consolidated Financial
Statement.

- 17 -

(Notes to the Interim Financial Statements)
Loss on Impairment of Fixed Assets
We, the Nipro group, recognized impairment loss on the following assets in this interim period.
Amount of loss
(Millions of yen)

Use

Type

Location

Store
Store
Leased asset
Leased asset
Idle asset

Buildings & structures, etc
Buildings & structures, etc
Land & buildings, etc
Land & buildings, etc
Land

3 sites in Hyogo pref.
7 sites in Osaka pref.
5 sites in Osaka pref.
3 sites in Niigata pref. etc
1 site in Kagoshima pref.
Total

673
489
367
358
31
1,920

We categorize its assets principally into the groups of assets for business use, leased assets, idle assets,
and assets for common use. The assets for business use are classified into groups on which separate
financial information is reported for management accounting purposes and individual store, whereas leased
assets and idle assets are individually categorized. Headquarters assets, R&D facilities, dormitory andcompany-offered houses are categorized into assets for common use, since these assets can not generatecash flow in itself.
The book value of assets whose land had significantly depreciated, or which incurred consecutive
operating losses were reduced to recoverable amount, and such deducted amount was recorded as loss on
impairment of fixed assets of 1,920 million yen in the extraordinary loss section. The loss on impairmentof fixed assets consisted of loss on buildings of 1,441 million yen, on structures of 31 million yen, on
machinery and equipment of 7 million yen, and on land of 440 million yen. The recoverable amount ofsuch asset groups are measured by their net realizable value of assets. Relevant assets were evaluatedbased on the real estate appraisal standards or on the price of the land fronting major roads for theimmaterial assets. The asset groups which were difficult to sell or which could not be used for otherpurpose, however, were evaluated as a minimum unit price. Some of the leased assets belonging to thesupermarket segment were evaluated at the utility value, which was computed with future cash flows
discounted by 4.4%.

(Lease Transactions)
Finance lease transactions, except for those where ownership of the leased assets is deemed to betransferred to the lessee
Previous interim
Current interimPrevious period
periodperiodAcquisition price equivalent
Accumulated depreciationequivalentBook value equivalent
Lease commitments
Due within one year
Due after over one year
Total
Lease payments
Depreciation equivalentInterest
expenseequivalent

7,224 mil.yen

4,474 mil.yen

7,237 mil.yen

4,429

〃

3,018

〃

4,939

〃

2,795

〃

1,455

〃

2,297

〃

1,585 mil.yen
1,234
〃
2,820

629 mil.yen
823
〃

〃

1,453

〃

1,304 mil.yen
983
〃
2,287

〃

673 mil.yen
535 mil.yen

570 mil.yen
444 mil.yen

1,317 mil.yen
1,091 mil.yen

57 mil.yen

39 mil.yen

104 mil.yen

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninths 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.
- 18 -

(Segment information)
1. Segment information by business category(1)Previous Interim period (From April 1, 2004, to September 30, 2004)(Unit: Millions of yen)

MedicalPharmaceutical

Glass &
Materials

Supermarket(1) Sales to third parties

40,84313,015

5,584

35,717522(2) Inter-segment sales
and transfers

517

-

1,141

15

Total

41,361

13,015

6,725

Operating expenses

35,23011,688Operating income

6,131

1,326

Eliminations/Corporate

Consolidated

95,683-

95,683283

1,958(1,958)-35,733806

97,641(1,958)95,683

5,766

35,767

640

89,092571

89,663

959

(33)

165

8,549

(2,530)

6,019

Other

Total

1. Net sales andoperating income
Net sales(2) Current Interim period (From April 1, 2005 to September 30, 2005)(Unit: Millions of yen)

MedicalPharmaceutical

Glass &
Materials

Supermarket(1) Sales to third parties

44,745

16,138

5,771

34,670627(2) Inter-segment sales
and transfers

-

-

1,585

15

44,745

16,138

7,356

Operating expenses

37,885

15,180Operating income

6,860

958

Eliminations/Corporate

Consolidated

101,952-

101,952

255

1,856

(1,856)-

34,685882

103,808(1,856)

101,952

6,572

34,552533

94,724

1,032

95,756

783

133

348

9,084

(2,888)

6,195

Other

Total

1. Net sales andoperating income
Net sales

Total(3) Previous period (From April 1, 2004 to March 31, 2005)(Unit: Millions of yen)

MedicalPharmaceutical

Glass &
Materials

Supermarket(1) Sales to third parties

82,503

26,207

11,666

70,841

1,101(2) Inter-segment sales
and transfers

876

-

2,384

-

Total

83,37926,207

14,051

Operating expenses

72,34023,946

Operating income

11,0392,260

Eliminations/Corporate

Consolidated

192,320-

192,320

553

3,813

(3,813)-70,841

1,654

196,133(3,813)

192,320

12,16270,726

1,366

180,541

1,374

181,915

1,889

114

288

15,592(5,188)

10,404

Other

Total

1. Net sales andoperating income
Net sales- 19 -

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 categories are as follows:Business
category

Main products

MedicalDialyzers, 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.

Supermarket

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 six months ended September 30, 2005,
2004 and the year ended March 31, 2005 included unallocated corporate costs of 2,888 million
yen, 2,530 million yen, and 5,188 million yen respectively. The unallocated corporate costs
consisted primarily of the parent company’s research and development cost and headquarters’
administrative expenses.

- 20 -

2. Segment information by geographical area
(1) Previous Interim period (From April 1, 2004 to September 30, 2004)

Japan

America

Asia

Europe(Unit: Millions of yen)

Total

Eliminations/Corporate

Consolidated

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

87,899

4,385

2,962

435

95,683-

95,683(2) Inter-segment sales
and transfers

5,898

160

1

4,924

10,985(10,985)-

Total

93,798

4,545

2,964

5,360

106,668(10,985)

95,683Operating expenses

85,707

4,628

2,822

5,122

98,282(8,618)89,663Operating income (loss)

8,090

(83)

141

237

8,386

(2,366)6,019(2) Current Interim period (From April 1, 2005 to September 30, 2005)

Japan

America

Asia

Europe(Unit: Millions of yen)

Total

Eliminations/Corporate

Consolidated

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

91,072

7,220

2,904

755

101,952-

101,952(2) Inter-segment sales
and transfers

7,946

184

3

5,080

13,215(13,215)-

Total

99,019

7,404

2,907

5,835

115,167(13,215)

101,952

Operating expenses

89,672

7,538

3,044

5,541

105,796(10,039)

95,756

Operating income (loss)

9,347

(134)

(136)

294

9,371

(3,175)

6,195(3) Previous period (From April 1, 2004 to March, 31, 2005)

Japan

America(Unit: Millions of yen)

Asia

EuropeTotal

Eliminations/Corporate

Consolidated

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

175,327

9,790

5,816

1,385

192,320-

192,320(2) Inter-segment sales
and transfers

12,261384

310,012

22,662(22,662)-

Total

187,589

10,175

5,820

11,397214,982(22,662)

192,320

Operating expenses

171,827

10,699

6,166

10,634

199,327(17,411)

181,915

Operating income (loss)

15,762

(523)

(346)

762

15,655(5,251)

10,404

Notes:

1. Operating expenses of “Eliminations and Corporate” for the six months ended September 30,
2005, 2004 and the year ended March 31, 2005 included unallocated corporate costs of 2,888
million yen, 2,530million yen and 5,188million yen respectively. The unallocated corporate
costs consisted primarily of the parent company’s research and development costs and theheadquarters administration costs.
2. Classification of countries or areas is based on geographical proximity.
3. The major countries included in each geographical area are as follows:
America···············The United States of America and Brazil
Europe ················Belgium
Asia ·····················China and Thailand- 21 -

3. Overseas sales(1) Previous Interim period (From April 1, 2004 to September 30, 2004)
America
1. Overseas sales

Europe14,255

9,318(Unit: Millions of yen)
Asia

Total

2,467

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

95,683

14.9%

9.7%

2.6%

(2) Current Interim period (From April 1, 2005 to September 30, 2005)
America

1. Overseas sales

Europe18,7339,862

consolidated net sales (%)

Asia

Total

2,969

18.4%

9.7%

America

2.9%

Europe29,953

consolidated net sales (%)

Notes:

31.0%(Unit: Millions of yen)

18,313

Asia

Total

5,234

2. Consolidated net sales
3. Percentage of overseas sales to

31,565

101,952(3) Previous period (From April 1, 2004 to March 31, 2005)

1. Overseas sales

27.2%(Unit: Millions of yen)

2. Consolidated net sales
3. Percentage of overseas sales to

26,04053,502

192,320

15.6%

9.5%

2.7%

27.8%

1.Overseas sales represent those of the Company and the consolidated subsidiaries to countries
and areas outside of Japan.
2.Classification of countries or areas is based on geographical proximity.
3.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, Taiwan and Thailand- 22 -

(Securities)
1. Other securities with market quotations(Unit: Millions of yen)
As of September 30, 2004

As of September 30, 2005

As of March 31, 2005

Acquisition cost

Carrying
value onconsolidated
B/S

Difference

Acquisition cost

Carrying
value onconsolidated
B/S

Difference

Acquisition cost

Carrying
value onconsolidated
B/S

Difference

Stocks11,786

26,914

15,12812,07940,47928,40011,78731,81020,022

Bonds

-

-

-

-

-

-

-

-

-

Others

60

50

(9)

81

88

(6)

60

54

(5)

Total
(Note)

11,846 26,965 15,118 12,160 40,567 28,406 11,847 31,864 20,016
No impairment loss was recorded for the other securities with market quotations for the bothprevious and current interim 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. Securities that do not have market quotations
Carrying value on
Consolidated
Balance Sheet
As of Sept. 30, 2004
Other securities
Unlisted stocks (excluding
those traded on theover-the-counter market)
Stocks of subsidiaries andaffiliates
Stocks of unconsolidated
subsidiaries
Stocks of affiliated companies
Total

Carrying value on
Consolidated
Balance Sheet
As of Sept. 30, 2005

(Unit: Millions of yen)
Carrying value on
Consolidated
Balance Sheet
As of March 31, 2005

4,447

4,525

4,435

722

113

722

5,042

4,364

4,683

10,212

9,002

9,841

(Derivatives)
N/A- 23 -

Production, Orders received and Sales
1. Production(1) Previous Interim Period (From April. 1, 2004 To September, 30, 2004)(Unit: Millions of yen)
Business segment

Ratio of change fromthe previous period (%)

Amount produced

Medical29,036

3.0

Pharmaceutical

12,6900.2

Glass & Materials

1,812

(1.2)

Other

381

(23.2)

Total

43,922

1.7(2) Current Interim Period (From April 1, 2005 To September 30, 2005)(Unit: Millions of yen)
Business segment

Ratio of change fromthe previous period (%)

Amount produced

Medical32,213

11.3

Pharmaceutical

16,47029.8

Glass & Materials

1,675

(7.6)

Other

218

(42.8)

Total

50,67715.4(3) Previous Period (From April 1, 2004 To March 31, 2005)(Unit: Millions of yen)
Business segment

Ratio of change fromthe previous period (%)

Amount produced

Medical58,921

2.3

Pharmaceutical

25,4792.8

Glass & Materials

3,668

(4.2)

Other

493

(31.5)

Total

88,563

1.9

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.

- 24 -

3. Sales(1) Previous Interim Period (From April 1, 2004 To September 30, 2004)(Unit: Millions of yen)
Business segment

Ratio of change fromthe previous period (%)

Sales Amount

Medical40,843

8.2

Pharmaceutical

13,015

9.4

Glass & Materials

5,584

(1.0)

Supermarket

35,717

(1.1)

Other

522

(18.8)

Total

95,683

4.0(2) Current Interim Period (From April 1, 2005 To September 30, 2005)(Unit: Millions of yen)
Business segment

Ratio of change fromthe previous period (%)

Sales Amount

Medical44,745

9.6

Pharmaceutical

16,13824.0

Glass & Materials

5,771

3.3

Supermarket

34,670

(2.9)

Other

627

20.0

Total

101,952

6.6(3) Previous Period (From April 1, 2004 To March 31, 2005)(Unit: Millions of yen)
Business segment

Ratio of change fromthe previous period (%)

Sales Amount

Medical82,503

4.8

Pharmaceutical

26,207

3.4

Glass & Materials

11,666(1.9)

Supermarket

70,841

(0.7)

Other

1,101

(20.6)

Total

192,320

1.9

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

- 25 -

Summary of Non-consolidated Financial Statements

November 21, 2005
For the Six-Month Period ended September 30, 2005 (Fiscal Year Ending March 31,2006)
Company name: NIPRO CORPORATION
Stock Exchange listed:Tokyo and Osaka
Code No:
8086
Head office location:
Osaka, Japan(URL: http://www.nipro.co.jp/)
Representative: Minoru Sano, President and Representative Director
Contact:
Akihiko Yamabe, Director, General Manager of Accounting andCorporative Planning Division
TEL (06) 6372-2331
Date of the meeting of theInterim dividend plan:
AdoptedBoard of Directors for approvalof the financial statements:
Scheduled date to commence
payment of dividends:
Unit share system:

November 21, 2005
December 9, 2005
Adopted (1,000 shares/unit)

1. Interim results for the year ending March 31, 2005 (From April 1, 2005 to September 30, 2005)(1) Results of Operations(Note: Amounts are truncated to one million yen)
Net Sales
Operating Income
Recurring Income
Six months ended Sep.30, 2005
Six months ended Sep.30, 2004
Year ended March 31, 2005

Millions of yen%

Millions of yen%

Millions of yen%

57,536
53,792
107,760

7.0
6.4

5,599
4,498
8,308

24.5
16.8

5,963
4,634
7,938

28.7
55.0

Earnings
per Share

Net Income
Six months ended Sep.30, 2005
Six months ended Sep.30, 2005
Year ended March 31, 2005

Millions of yen

%

Yen

2,039
3,256
5,114

(37.4)
132.5

32.09
51.20
78.75

Notes: 1. The weighted average number of shares outstanding for the period:
Six months ended September.30, 2005: 63,559,272 shares Six months ended September.30, 2004: 63,607,103 sharesYear ended March 31, 2005:
63,596,799 shares
2. Change in accounting method: Adopted
3. Percentages in the above table for Net Sales, Operating Income, Recurring Income and Net Income represent changes from theprevious interim period.

(2) Dividends
Interim dividends per
share

Annual dividends per
share
Yen

Yen

Six months ended Sep.30, 2005
Six months ended Sep.30, 2005
Year ended March 31, 2005

16.00
25.50
-.-

-.-.38.50(3) Financial Position
Total Assets
Six months ended Sep.30, 2005
Six months ended Sep.30, 2005
Year ended March 31, 2005

Shareholders’EquityMillions of yen

Millions of yen

260,931249,639
256,928

114,094
105,697
108,490

Notes: 1. The number of outstanding shares at the end of the period:
Six months ended September 3, 2005: 63,549,130sharesYear ended march 31,2005:
63,565,537 shares
2. The number of treasury stock at the end of the period:
Six months ended September 30, 2005: 329,375 shares:
Year ended March 31, 2005:
312,968 shares

Ratio of Shareholders’Equity to Total Assets

Shareholders’Equity
per Share

%

Yen

43.7
42.3
42.2

1,795.38
1,662.06
1,705.08

Six months ended September 30, 2004:

63,594,527shares

Six months ended September 30,2005:

283,978

2. Projections for the Results of the Year ending March 31, 2006 (From April 1, 2005 to March 31, 2006)
Net SalesYear ending March 31, 2006

Recurring Income

Net Income

Annual dividends per
share
Year-end
Dividends

Millions of yen

Millions of yen

Millions of yen

Yen

Yen

114,000

9,850

3,950

13.00

29.00

(Reference) Projected earnings per share for the year ending March 31, 2006: 60.49 yen* The projections shown above are prepared based on information available as of the issuing date of thisreport. The actual results may differ from the projected figures due to various factors. Concerning
the matters related to the above projections, please refer to the Page 9.
- 26 -

Balance Sheets

PeriodAccount

Previous Interim Period(as of Sept. 30, 2004)
AmountRatio(ASSETS)
Current Assets
Cash on hand and in banks

Trade notes receivable
Accounts receivable
Merchandise and finished products

Deferred tax assets
Other current assets
Allowance for doubtful accounts
Fixed Assets
Tangible fixed assets
Buildings
Machinery

Land
Other tangible fixed assets
Intangible fixed assets(Unit: Millions of yen)
Current Interim Period
Previous Period(as of March 31, 2005)(as of Sept 30, 2005)
AmountRatio%
103,569

41.5

42,587
13,36725,75915,840
758
5,260
(5)

Amount%92,47035.4

28,57913,112
28,726
17,063
712
4,280
(5)

Ratio
%

103,03640.1

44,12912,644
26,28016,570
884
2,531
(5)

146,070

58.5

168,460

64.6

153,892

59.9

33,23313.3

34,20913.1

33,92513.2

10,1437,434
12,4403,214

10,417
8,282
10,946
4,562

9,785
8,318
12,440
3,380

209

0.1

219

0.1

247

0.1

Investments and other assets

112,62745.1

134,03151.4

119,719

46.6

Investment securities

29,402
53,692

41,66956,29533,78353,692

Allowance for doubtful accounts

10,79012,781
6,424
(464)

9,938
19,657
6,856(387)

10,79015,083
6,828(459)

Total Assets

249,639

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

Other assets

100.0- 27 -

260,931100.0

256,928100.0

Balance Sheets

PeriodAccount

Previous Interim Period(as of Sept. 30, 2004)
AmountRatio(LIABILITIES)Current liabilities
Trade notes payable
Trade accounts payable
Short-term borrowings
Current portion of bonds
Accrued income taxes, etc
Accrued bonuses
Commercial paper
Other current liabilities

Fixed liabilities
Bonds
Convertible-bond-type bonds with stockacquisition rights

Long-term borrowings
Deferred tax liabilities
Accrued pension and severance cost

Lease deposits received
Total liabilities(Unit: Millions of yen)
Current Interim Period
Previous Period(as of Sept. 30, 2005)(as of March 31, 2005)
Amount%70,18828.1

14,244
10,706
26,74010,000
2,730
830
4,935
73,753

Ratio%

83,07931.915,592
10,751
27,627
13,000
2,420
1,061
7,000
5,626
29.6

Amount

63,756

Ratio%

73,50228.6

14,602
12,83027,994
3,000
2,850
645
7,000
4,579
24.4

74,93429,00016,00026,00014,00023,852
4,331
1,589
979

14,00022,904
7,936
1,883
1,031

14,00026,223
6,032
1,674
1,004

29.2

143,94157.7

146,83656.3

148,43757.8

28,66329,972
29,97239,5591,196
34,743
3,619
8,040
(537)

11.5
12.0

11.0
11.5

5.8
(0.3)

28,66329,972
29,972
39,795
1,196
34,743
3,855
10,646
(586)

11.1
11.7

3.2
(0.2)

28,66329,972
29,97240,902
1,196
37,2962,410
15,170
(614)

4.1
(0.2)

Total shareholders’ equity

105,69742.3

114,09443.7

108,490

42.2

Total liabilities and shareholders’ equity

249,639100.0

260,931100.0

256,928100.0(SHAREHOLDERS’ EQUITY)

CapitalCapital surplus
Capital reserve
Earned surplus
Revenue reserve
Voluntary reserves
Undivided retained interim earnings
Valuation differences of other securities

Treasury stock

15.8- 28 -

15.7

15.5

Statements of Income
PeriodAccount

Previous Interim Period

Current Interim Period(Unit: Millions of yen)
Current Period(From April 1, 2004
To Sept. 30, 2004)(From April 1, 2005
To Sept. 30, 2005)(From April 1, 2004
To March 31, 2005)

AmountRatio

AmountRatio%

Amount

Ratio

%

%

Net sales
Cost of goods sold

53,792
40,980100.0
76.2

57,53642,904

100.0
74.6

107,760
82,305100.0
76.4

Gross profit

12,811

23.8

14,632

25.4

25,454

23.6

8,312

15.4

9,033

15.7

17,146

15.9

Operating income

4,498

8.4

5,599

9.7

8,308

7.7

Non-operating income

1.5

10.4

932
300
186
340
104
1,303
394
843
64
7,938

0.9

8.6

986
182
237
389
177
621
209
353
58
5,963

1.7

Interest income
Dividend income
Exchange gain
OthersNon-operating expenses
Interest expenses
Interest on bonds
OthersRecurring income

829
170
106
504
48
693
195
459
39
4,634

7.4

Extraordinary gains

1,165

2.2

39

0.1

1,144

1.1

0.2

10
19
10
2,691

4.7

1,108
35
249

0.3

Selling, general and administrative
expensesGain on sale of investment
securities
Governmental subsidies
OthersExtraordinary losses
Losses on sales and disposals of
fixed assets
Impairment loss on fixed assets
Loss on devaluation of
investment in affiliated company

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

1,108
57
99

1.3

1.0

78
-

19
1,779

189
-

20

851
41

60

1.2

5,700

10.6

3,311

5.8

8,832

8.2

2,552
(108)

4.7
(0.2)

2,275
(1,003)

4.0
(1.7)

4,026
(308)

3.8
(0.3)

Net income
Retained earnings at the
beginning of the period
Interim dividends

3,256

6.1

2,039

3.5

5,114

4.7

363
-

370
-

363
1,621

Undivided retained earnings

3,619

2,410

3,855

- 29 -

Significant Accounting Principles
1.
(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
2. 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).
3. 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.

Accrued bonuses ························ 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.
Accrued pension andseverance cost···························· An allowance is provided for employees pension andseverance payments based on the estimated amounts ofprojected benefit obligation and plan assets at the end of the
fiscal year.
Actuarial difference is expensed in the following fiscal years
after the year of such recognition, using the straight-line method
for five years.
4. 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.
5. Other significant basis on preparation for financial statements
Consumption taxes are excluded from revenues and expenses accounts.

- 30 -

(Change in Accounting Method)
Impairment accounting for fixed assets
Since this interim period, we have adopted “the Opinions on Accounting Standard for Impairment of Fixed
Assets” (issued by the Business Accounting Council of Japan on August 9, 2002) and “Guidelines forapplication of Accounting Standard for Impairment of Fixed Assets” (Accounting Standard Board Guideline
No.6 issued by the Financial Accounting Standards Board of Japan on October 31, 2003) The applicationof the new accounting standard reduced net income before adjustment of taxes by 1,779 million yen,
compared to the previous accounting method. Accumulated impairment loss is deducted directly fromeach relevant asset in accordance with the revised Regulations for Semiannual Consolidated Financial
Statements.

Notes to the Interim Financial Statements(Balance Sheet)
1. Accumulated depreciation of tangible fixed assets

As of
September 30, 2004

As of
September 30, 2005

As ofMarch 31, 2005

45,918 mil.yen

48,257 mil.yen

46,774 mil.yen

5,378 mil.yen

4,972 mil.yen

5,156 mil.yen

2. Pledged assets
Buildings
Land

2,714

〃

2,685

〃

2,685

〃

3. Obligations under guarantee contracts

14,767 mil.yen

13,912 mil.yen

15,209 mil.yen

4. Obligations as a co-surety

1,834 mil.yen

1,562 mil.yen

1,666 mil.yen

5. Notes receivable discounted

25 mil.yen

25 mil.yen

76 mil.yen

283,978 shares

329,375 shares

312,968 Shares

6. Number of treasury stock(Statement of Income)From April 1, 2004
To September 30, 2004

From April 1, 2005
From April 1, 2004
To September 30, 2005 To March 31, 2005

1. Amount of depreciation
Tangible fixed assets

1,515 mil.yen

1,583 mil.yen

3,330 mil.yen

Intangible fixed assets

34 mil.yen

37 mil.yen

68 mil.yen

2. Loss on Impairment of Fixed Assets
The company recognized impairment loss on following assets in this interim period.
Use

Type

Location

Leased assets
Leased assets
Idle assets

Land & buildings, etc
Land & buildings, etc
Land

2 sites in Osaka pref.
3 sites in Niigata pref. etc
1 site in Kagoshima pref.
Total

Amount of loss
(Millions of yen)
1,389
358
31
1,779

The company categorizes its assets principally into the groups of assets for business use, leased assets,
idle assets, and assets for common use. The assets for the business use are classified into groups onwhich separate financial information is reported for management accounting purposes, whereas leased
assets and idle assets are individually categorized. Headquarters assets, R&D facilities, dormitory andcompany-offered houses are categorized into assets for common use, since these assets can not generatecash flow in itself.
The book value of assets whose land had significantly depreciated, or which incurred consecutive
operating losses were reduced to recoverable amount, and such deducted amount was recorded as loss on
impairment of fixed assets of 1,779 million yen in the extraordinary loss section.
The loss on impairment of fixed assets consisted of loss on buildings of 192 million yen, on structures of 0
million yen and on land of 1,586 million yen. The recoverable amount of such asset groups is measured
by the net realizable value of assets Relevant assets were evaluated based on the real estate appraisal
standards, or on the price of the land fronting major roads for the immaterial assets. The asset groups
which were difficult to sell or which could not be used for other purpose, however, were evaluated as aminimum unit price.
- 31 -

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

Acquisition price equivalent
Accumulated depreciationequivalentBook value equivalent
Lease commitments
Due within one year
Due after over one year
Total

As of
September 30, 2004

As of
September 30, 2005

947 mil.yen

909 mil.yen

960 mil.yen

540

〃

566

〃

606

〃

407

〃

343

〃

353

〃

189 mil.yen
336
〃
526

Lease payments
Depreciation equivalentInterest
expenseequivalent

As ofMarch 31,2005

179 mil.yen
286
〃

〃

181 mil.yen
301
〃

〃

466

〃

483

109 mil.yen
104 mil.yen

108 mil.yen
96 mil.yen

218 mil.yen
218 mil.yen

5 mil.yen

5 mil.yen

11 mil.yen

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninths 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 September 30, 2005, 2004 and March 31, 2005 there was no stock issued by subsidiaries oraffiliated companies that have market quotations.

Net Sales by Division and Proportion to the Total(Millions of yen)
PeriodFrom April 1, 2004
To September 30, 2004

AmountDivision

From April 1, 2005
To September 30, 2005

Ratio

AmountFrom April 1, 2004
To March 31, 2005

Ratio

%

Amount%

Ratio%

Medical division

39,091

72.7

41,82072.7

78,027

72.4

Pharmaceutical division

8,236

15.3

8,777

15.2

16,540

15.3

Glass & Materials division

5,656

10.5

5,979

10.4

11,827

11.0

807

1.5

959

1.7

1,365

1.3

Total

53,792100.0

57,536

100.0

107,760

100.0[including Exports][18,257]

33.9[20,686]

36.0[36,510]

33.9

Other

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