Summary Report of Consolidated Financial Results
For the Nine Months Period ended December 31, 2015

February 10, 2016stCompany name: NIPRO CORPORATION
TSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko Sano, President and Representative Director
Contact person: Takahito Yogo, Director and General Manager of Corporate Planning Headquarters
TEL: (06)6372-2331
Filing date of quarterly reporting: February 12, 2016
Payment date of cash dividends: Supplemental material on quarterly reporting: No
Presentation on quarterly results: No(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Nine Months ended December 31, 2015 (From April 1, 2015 to December 31, 2015)(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%
9 months ended December 31, 2015
274,061
14.1
18,431
34.3
13,884(24.9)
13,968(3.8)
9 months ended December 31, 2014
240,101
7.9
13,72633.3
18,49055.2
14,520223.2
Note: Comprehensive income 9 months ended December 31, 2015: 5,696 million yen ((70.1)%)
yen ((25.8)%)

9 months ended December 31, 2015
9 months ended December 31, 2014

Earnings per share
Yen
82.35
95.63

(2) Consolidated Financial Position
Total Assets
Millions of yen
9 months ended December 31, 2015
714,613
Year ended March 31, 2015
695,306
Note: Equity

2.

9 months ended December 31, 2014: 19,079 million

Diluted Earnings per share
Yen
85.82

Net Assets
Millions of yen
177,449
178,8109 months ended December 31, 2015: 167,554 million yen

Equity Ratio
%
23.4
24.1

Year ended March 31, 2015: 167,659 million yen

Dividends

Year ended March 31, 2015
Year ending March 31, 2016
Year ending March 31, 2016
(Forecast)

Annual Dividends per Year
Year-end Dividends
Second-quarter
Third-quarter
Yen
Yen
Yen
18.00
14.50
17.00
-

First-quarter
Yen-

Annual Dividends

Yen
32.50

18.00

35.00

Note: Revisions to the forecast of cash dividends in the current quarter: No
3.

Forecast of Consolidated Financial Results for the Year ending March 31, 2016 (From April 1, 2015 to March 31, 2016)(Note: The % displays in the line of year ending March 31, 2016 show increase/decrease ratio against the year ended March 31, 2015)

Operating
IncomeNet Sales
Millions of yen%

Millions of yen

Ordinary Income%

Millions of yen%

365,000 12.3
25,00050.9
19,300(1.8)
Note: Revisions to the forecast of consolidated financial results in the current quarter: No
Year ending March 31, 2016

Net Income
Millions of yen

16,700%33.9

Earnings
per Share
Yen
98.47

*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):
9 months ended December 31, 2015: 171,459,479 sharesYear ended March 31, 2015: 171,459,479 shares[2] Number of treasury stock at end of the period:
9 months ended December 31, 2015:

1,716,745 sharesYear ended March 31, 2015:

1,899,861 shares[3] Average number of shares during the period:
9 months ended December 31, 2015: 169,629,310 shares

9 months ended December 31, 2014: 151,839,221 shares

Note: Number of the treasury stocks as of December 31, 2015 included 767,700 shares, and as of March 31, 2015
included 953,100 shares owned by Trust and Custody Service Bank, Ltd (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.2“1. Qualitative Information for the Nine-Month Period Ended December 31, 2015, (3) Commentary on
Forward-Looking Statements Including Forecast of Consolidated Financial Results” in the attachment.

Table of Contents
1.

2.

3.

Qualitative Information for the Nine-Months Period ended December 31, 20152(1) Commentary on Business Results

2(2) Analysis Concerning Financial Position

4(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

6(1) Quarterly Consolidated Balance Sheets

6(2) Quarterly Consolidated Statements of Income andQuarterly Consolidated Statements of Comprehensive Income

8(3) Notes Regarding Consolidated Financial Statement

9(Notes regarding going concern)

9(Notes regarding significant changes in the amount of shareholders’ equity)

9(Segment Information)

9-1-

1. Qualitative Information for the Nine-Month Period Ended December 31, 2015
(1) Commentary on Business Results
During the nine months of the fiscal year under review, a shift to a full-fledged recovery failed to take shape on account of theeconomic slowdown in China, the decline in crude oil prices, the hiking of interest rates in the U.S., and other developments.
There is even greater uncertainly regarding Japan’s economy for various reasons, including the impact of the Chinese
economy, the economic slowdown in developing countries, as well as growing instability throughout the world, the source of
which is the Middle East. .
Under such circumstances, the Nipro Group has worked to improve operating results through its continued efforts to
expand sales and reduce costs with the greatest priority to user safety.
As a result, consolidated sales for the nine-month period ended December 31, 2015 increased by 14.1% from the same
period of the previous year to 274,061 million yen. As for the profit, consolidated operating income increased by 34.3%
from the same period of the previous year to 18,431 million yen. Consolidated ordinary income decreased by 24.9% fromthe same period of the previous year to 13,884 million yen partly because of exchange losses. Consolidated net income
attributable to owners of parent decreased by 3.8% from the same period of the previous year to 13,968 million yen.
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 of Medical-Related Business, sales of injection-transfusion products,

enteral-alimentation products, testing products, dialysis products, and cardiovascular products remained solid. Especiallyin the field of dialysis products, sales of HDF filters and dialysis monitoring devices largely increased. As for cardiac
surgery (CVS) products, sales recovered in the current quarter to the same level as that for the same quarter of theprevious yearFor the Pharmaceutical Sales Division, the sales were steady due to the expansion of the market with thepromotion policy of generic drugs, the expansion of existing products and the launch of addenda listing items in June.
However, turning to sales of December addenda listing items, price competition in the market continues to grow fiercer as
several tens of manufacturers vie for sales, and this is having a major impact on both sales and profits. Therefore, wehave strengthened the sales promotion to dispensing pharmacies, diagnosis procedure combination (DPC) hospitals andprescribers. Also we tried to increase the share of orally administered drugs and external preparations and worked harderfor information offering activities of injectables based on the collaboration with pharmaceutical wholesaler.
Meanwhile, overseas sales increased significantly from the same period of the previous year as we strengthened thesales of dialysis products and hospital products. However, the profits decreased with the exchange losses caused by the
impact of foreign exchange markets.
We strengthened the overseas sales organization and stepped up our direct sales activities with the aim of quickly
responding further to front-line needs and boosting overseas sales. In the Republic of Ecuador, our U.S. subsidiary, Nipro
Medical Corporation, opened its fourth sales office in the country in the city of Portoviejo, in October. This will make itpossible to meet local medical needs while providing meticulous service closely tied to the local community and increase
the market presence of the company in the country. Furthermore, in India, we plan on opening four new offices in thecities of Lucknow, Kochi, Ahmedabad, and Jaipur, and within three years we will open an office in every state in India andmove forward with efforts to establish a sales network throughout the country. In addition, new overseas manufacturing
facilities (in India, Indonesia, Bangladesh and Hefei in China) further improved their production system and realized
production expansion under established quality system to promote their sales widely in their countries and surrounding
areas, which contributed to sales growth.
As a result, net sales of this business increased by 15.7% from the same period of the previous year to 202,837 million
yen.

-2-

(ii)

Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business, we have broadened our contracted manufacturing operation to encompass
contracts to develop products from the formulation design of orally administered drugs and external preparations and todevelop products using our expertise developing and supplying vials, syringes, bags, and other packaging containers. We
also endeavored to expand the contracted business by offering a diverse range of detailed yet wide-ranging contract
services, such as support for lifecycle management where we believe we can enhance the value-added features andrealize distinct service differentiation. In addition, efforts to upgrade and expand our contracted manufacturing capabilities
for the dedicated biopharmaceuticals line and the oral drugs and injectable solutions lines at the high potency active
pharmaceutical ingredients manufacturing plant contributed to strong sales of contracted manufacturing.
Sales of pharmaceutical containers as well as devices related to pharmaceutical preparation and administration steadily
increased due to offering containers and systems suitable to each pharmaceutical product developed by ourselves or
through joint development with pharmaceutical manufactures. Such efforts were made to meet various needs in the
medical front, including small-volume bags, materials for pre-filled syringes (plastic and glass), etc., on top of rubber
stoppers for pharmaceutical and vaccine use and containers for kit products. In addition, under the government’s policy to
curb medical expenses, we have worked together with domestic and foreign pharmaceutical manufactures in enhancing
comprehensive lifecycle management of pharmaceutical products, taking into consideration the development of
combination products (our original collaboration between pharmaceutical products and medical devices), self-injection
systems, and dosage form/administrating path modification in the future.
As a result, net sales of this business increased 7.7% from the same period of the previous year to 46,267 million yen.

(iii) Glass-Related BusinessIn the Glass-Related Business, adding to our conventional products, we have made effort of academic and sales
activities to meet global customer needs and acquire new demands while we have promoted the development of newtechnologies and new products domestically and internationally to support injectable formulation and filling process withhigh stability.
For the pharmaceutical packaging in domestic glass department, we increased the sales mainly in tube glass, vials andprefilled syringe. As for “Biwako Factory,” a state-of-the-art plant for pharmaceutical packaging, with the purpose of further
improving our quality assurance system for good manufacturing practice (GMP), the factory aims to establish the
production and sales system of high quality glass for medical purpose and promotes their activities to meet the needsfrom global customers.
Regarding overseas glass department, we have expanded the sales of high-valued products such as syringe andvarious vials which demand is increasing in the mature markets such as Europe and the United States and also
strengthened the sales of tube glass, ampoules and vials in the emerging markets including China, India and Russia. Dueto these activities, both the sales and profit increased. Especially in China, the largest market of emerging countries, themarket has greatly changed to require higher-quality medical containers than conventional products following the order ofgovernment. Under these circumstances, we have invested in equipment to introduce high-quality products and in
November established a company in Shanghai to supervise the three existing plants in China. The progress toward toentre high quality market has been accelerated.
In this business, we have promoted the changing to general pharma packaging business with a fusion of products andtechnologies cultivated in both medical and pharmaceutical related businesses such as rubber stopper and plastic
containers as well as glass containers. In addition, the standardization of product specifications and services in each
office has been also promoted to meet the requirement for development from globalizing pharmaceutical companies. We
will promote effective investment domestically and internationally to strengthen production capacity of conventional
products, improve the quality and introduce new products for the continuous expansion of our business providing the
products and services with a user-focused approach.

-3-

Among other glass-related products, overseas demands of glass for thermos bottles decreased but whole sales of thisdepartment remained solidly.
As a result, net sales of this business increased 15.0% from the same period of the previous year to 24,932 million yen.

(iv) Other BusinessAmong other business, sales from the real-estate rental business were 24 million yen (down by 70.9% from the same
period of the previous year).

(2) Analysis Concerning Financial Position[1] Analysis Concerning the Conditions of Assets, Liabilities and Net Assets
Total assets increased by 19,306 million yen from the end of the previous year to 714,613 million yen. Current assets
increased by 12,105 million yen primarily due to an increase of 5,849 million yen in deferred tax assets, and noncurrent
assets increased by 7,200 million yen primarily due to an increase of 4,208 million yen in Goodwill.
Total liabilities increased by 20,667 million yen from the end of the previous year to 537,164 million yen. Current
liabilities increased by 1,131 million yen primarily due to an increase of 6,464 million yen in Notes payable - facilities, andnoncurrent liabilities increased by 19,536 million yen primarily due to an increase of 20,610 million yen in long-term loans
payable.
Total net assets decreased by 1,360 million yen from the end of the previous year to 177,449 million yen. Shareholders’equity increased by 7,960 million yen and accumulated other comprehensive income decreased by 8,065 million yen.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
The Company expects that the global economy will continue to stay on a moderate recovery trend despite the increasing
uncertainty about the future outlook caused by economic slowdown in China and the Japanese economy will also remain on
a recovery trend while it will be affected by the global trend.
Even under such circumstances, the Nipro Group will work to improve profits through its continued efforts to expand
sales and reduce production costs.
Therefore, at this moment, we have not made any revision to the forecast of consolidated financial results for the year
ending March 31, 2016, which was announced on November 11, 2015.

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 Business Combinations and related accounting standards
The Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September
13, 2013; hereinafter the “Accounting Standard for Business Combinations”), “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, September 13, 2013; hereinafter the “Accounting Standard for-4-Consolidated Financial Statements”), and “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7,
September 13, 2013; hereinafter the “Accounting Standard for Business Divestitures”), etc., effective from the first quarter
under review. As a result, the method of recording the amount of difference caused by changes in the Company’sownership interests in subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to one
in which it is recorded as capital surplus, and the method of recording acquisition-related costs was changed to one inwhich they are recognized as expenses for the fiscal year in which they are incurred.
Furthermore, for business combinations carried out on or after the beginning of the first quarter under review, theaccounting method was changed to one in which the reviewed acquisition cost allocation resulting from the finalization of
the tentative accounting treatment is reflected in the quarterly consolidated financial statements for the quarterly period inwhich the business combination occurs.
In addition, a change in the presentation of quarterly net income, etc. and a change in the presentation of the minority
interests to non-controlling interests were adopted. In order to reflect these changes in presentation, the quarterly
consolidated financial statements for the third quarter of the previous fiscal year and the consolidated financial statements
for the previous fiscal year were reclassified.
The application of the Accounting Standard for Business Combinations and related accounting standards is subject tothe transitional treatment provided for in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations,Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements, and Paragraph 57-4 (4) of the
Accounting Standard for Business Divestitures. Accordingly, these standards have been applied prospectively from the
beginning of the first quarter under review.
As a result, capital surplus decreased 635 million yen and retained earnings decreased 129 million yen in the current
quarterly period under review. In addition, consolidated operating income, consolidated ordinary income and consolidated
income before income taxes increased 37 million yen, respectively.

-5-3. Consolidated Financial Statements(1) [ Quarterly Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2015
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

-6-

As of
December 31, 2015

112,871
114,477
67,412
12,14922,913
6,963
16,341(2,783)350,346

106,639
117,640
68,596
11,54326,062
12,81320,074(917)
362,452

174,138(81,157)
92,980212,911(150,454)
62,45722,027
3,058(1,957)
1,100
31,242
42,619(32,232)
10,387220,195

175,950(84,008)
91,942
220,743(155,383)
65,36021,7633,215(2,100)1,115
32,40245,383(34,094)
11,288233,872

26,364
1,625
16,37944,36930,572
2,582
17,04250,19664,076140
7,899
11,901(3,622)80,395344,960
695,306

61,896467
6,862
14,660(5,795)78,091
352,161
714,613(Millions of yen)
As ofMarch 31, 2015
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued directors' bounuses
Income taxes payable
Provision for bounuses
Provision for directors' bounuses
Notes payable - facilities
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
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
Non-controlling interests
Total net assets
Total liabilities and net assets

-7-

As of
December 31, 2015

51,750136,359
10,00027,840828
11,679
436
3,934
3,621
123
2,641
29,184278,401

55,796
137,900
10,00028,302
1,088
8,343
－
3,235
4,966
364
9,106
20,429279,532

20,592
205,621
3,127
2,162
3,841
524
11
2,214
238,095
516,496

18,780226,231
3,779
1,969
4,035
547
10
2,277
257,631
537,164

84,397635
58,885(1,686)142,231

84,397－67,316(1,521)150,192(2,311)39
27,870(170)
25,427
11,150178,810695,306(663)(14)
18,131(91)
17,361
9,894
177,449
714,613

(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement of Comprehensive Income]Quarterly Consolidated Statements of Income(Amount: million yen)
FY2014 first nine months(From April 1, 2014
to December 31, 2014)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gain
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on sales of investments in capitalof subsidiaries and associates
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Loss on sales of investment securities
Loss on step acquisitions
Reversal of allowance for doubtful accounts
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

FY2015 first nine months(From April 1, 2015
to December 31, 2015)

240,101
166,135
73,96660,23913,726

274,061
187,281
86,77968,34818,431

552
1,596
6,327
－
1,385
9,862

588
881
－
455
1,032
2,958

3,033
122
－
1,942
5,098
18,490

3,225
95
2,239
1,945
7,505
13,884

637
3,402

272
－

－

1,601

59
4,099

180
2,054

238
12
1,894
－
－
319
2,465
20,124
7,753(2,541)
5,211
14,913392
14,520

199
51
289
2,238
816
304
3,900
12,038
5,863(7,830)(1,967)
14,00637
13,968[Qarterly Consolidated Statements of Comprehensive Income](Amount: million yen)
FY2014 first nine months(From April 1, 2014
to December 31, 2014)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-8-

FY2015 first nine months(From April 1, 2015
to December 31, 2015)

14,91314,006

946
(22)
3,217
52

1,648
(53)
(9,982)
79

(27)

(1)

4,166
19,07918,688390(8,309)
5,696
5,903
(206)

Notes Regarding Consolidated Financial Statement(Notes regarding going concern)
N/A(Notes regarding significant changes in the amount of shareholders’ equity)
Effective from the first quarter under review, the Company has applied the “Accounting Standard for Business
Combinations and related accounting standards”. Please refer to “Change in Accounting Policies” about the impact of
this change.
(Segment Information)
FY2014 (From April 1, 2014 to December 31, 2014)

Ⅰ
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

175,364

42,966

21,686240,01783

240,101－

240,101(2)Inter-segment sales
and transfers

1,173

6,294

533

8,002

26

8,028

(8,028)－

Total

176,537

49,26122,220248,019110

248,129(8,028)240,101

Segment profit

17,664

8,572(2,205)24,031

104

24,135(10,408)

13,726(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 (10,408) million yen includes adjustment of unrealized income of (2,052)
million yen and corporate cost of (8,356) million yen. Corporate cost consisted primarily of general andadministrative expenses and research and development cost which do not belong to the reporting segment.
Segment profit is adjusted to the operating income on the consolidated statements of income.

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

-9-

Ⅱ
1.

FY2015 (From April 1, 2015 to December 31, 2015)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalRelated

PharmaceuticalRelated

GlassRelated

Total

Other
(Note.1)

Total

Consolidated
Statements ofIncome(Note.3)

Adjustment(Note.2)

Net sales(1)Sales to third parties

202,837

46,267

24,932

274,03724

274,061-

274,061(2)Inter-segment sales
and transfers

1,327

6,425

685

8,438

28

8,466

(8,466)-

Total

204,164

52,692

25,618282,47552

282,528(8,466)

274,061

Segment profit

21,5558,168(1,063)

28,66050

28,711(10,280)

18,431(Notes)1.
2.
3.

“Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
Adjustment for the segment profit of (10,280) million yen includes adjustment of unrealized income of (201) million
yen and corporate cost of (10,078) million yen. Corporate cost consisted primarily of general and administrative
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
Effective from the first quarter under review, the method of recording the amount of difference caused by changes in
the Company’s ownership interests in subsidiaries in the case of subsidiaries under ongoing control of the Company
was changed to one in which it is recorded as capital surplus, and the method of recording acquisition-related costs waschanged to one in which they are recognized as expenses for the fiscal year in which they are incurred.
As a result, the amount of segment profit in Glass-Related business in the current quarter under review increased 37
million yen compared to the conventional method.
3. Information on Impairment Loss on Fixed Assets and on Goodwill by Reportable Segment
Significant Change in Amount of Goodwill
In Medical-Related Business, we have consolidated Infraredx, Inc. after acquisition of its stocks. Due to this, the quarterly
consolidated Goodwill increased by 6,478 million yen from the end of the previous fiscal year.

- 10 -