Consolidated Financial Statements
For the Six-Months Period ended September 30, 2007 (Fiscal Year Ending March 31, 2008)
November 19, 2007
Company name: NIPRO CORPORATION
Stock Exchange listed: Tokyo and Osaka
Code Number: 8086
URL: http://www.nipro.co.jp/
Representative: Minoru Sano, President and Representative Director
Contact:
Akihiko Yamabe, Director, General Manager of Accounting and Corporative Planning Division TEL (06) 6372-2331
Scheduled date of the semi-annual securities report filing: December 20, 2007
Scheduled date to commence payment of interim dividends: December 10, 2007
(Note: Amounts are truncated to 1 million yen)
1. Consolidated Results for the Six months ended September 30, 2007 (From April 1, 2007 to Sep. 30, 2007)(1) Consolidated Results of Operations (Note: % shows increase/decrease ratio against the six months ended September 30, 2006)
Net Sales
Millions of yen

Six months ended September 30, 2007
Six months ended September 30, 2006
Year ended March 31, 2007%

Operating Income

Recurring Income

Millions of yen

Millions of yen%

84,288 (15.9)
100,280 ( 1.6)
184,362-7,432 25.1
5,940 ( 4.1)
13,053-

Earnings per Share

Diluted Earnings per ShareYen

Net Income%

Millions of yen

6,537 34.2
4,869 (21.5)
11,355-%

3,328 (17.1)
4,016 97.4
8,555
-

Yen

Six months ended September 30, 2007
52.44
Six months ended September 30, 2006
63.24
Year ended March 31, 2007
134.71
Note: Equity in loss of affiliate: Six months ended September 30, 2007 397 million yen, Six months ended September 30, 2006 356 million yen, Year ended March 31, 2007 791 million yen(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Net assets per share

Equity Ratio%

Yen

Six months ended September 30, 2007
341,968
126,300
36.5
1,967.54
319,733
116,166
35.7
1,795.78
Six months ended September 30, 2006
Year ended March 31, 2007
336,659
127,02037.3
1,979.21
Note: Shareholders’ Equity: Six months ended September 30, 2007 124,882 million yen, Six months ended September 30, 2006 114,037 million yen, Year ended March 31, 2007 125,561 million yen(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,931
7,984
14,488(15,737)
7,146(2,924)467(23,946)(15,654)

33,11841,16046,109Six months ended September 30, 2007
Six months ended September 30, 2006
Year ended March 31, 2007
2. Dividends(Basis date)

Annual dividends per share
Interim dividends
Year-end dividends
Annual dividends

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

Yen

Yen

Yen

43.00
28.00

37.00

80.00

Year ending March 31, 2008(Projected)

48.50

20.50

3. Projected Consolidated Financial Results for the Year ending March 31, 2008 (From April 1, 2007 to March 31, 2008)
Net SalesYear ending
March 31, 2008

(Note: % shows increase/decrease ratio against March 31,2007)
Earnings
OperatingRecurring
Net Income
per Share
IncomeIncomeMillions of yen %Millions of yen%

Millions of yen%

Millions of yen %Yen162,000 (12.1)

14,1008.0

13,050-1-

14.9

6,600 (22.9)

103.98

4. Others(1) Change in significant subsidiaries during the six months ended September 30, 2007(Resulting in a change in scope of
consolidation): Yes
Addition: 1 (Saitama Daiichi Pharmaceutical Co., Ltd.)
Removal: 0(Note) Please refer to page 7(“Corporate group”) for further details.
(2) Changes in accounting principles, procedures or presentation related to the preparation of consolidated financial

statements (i.e., changes in the basis of significant accounting policies)
1) Changes due to adoption of new accounting standards: Yes
2) Changes other than those included in 1) above: None
(Note) Please refer to page 20(“Basis of Preparation for the Consolidated Financial Statements”) for further details.
(3) Total number of common shares issued
1) Total number of common shares issued at the end of period (including treasury stock):
September 2007: 63,878,505 shares
September 2006: 63,878,505 shares
March 2007: 63,878,505 shares2) Total number of shares in treasury at the end of period:
September 2007:
407,015 shares
September 2006:
375,315 shares
March 2007: 393,067 shares(Note) Please refer to page 29(“Per share information”) to see the basis of share numbers to calculate Earnigs per
share(Consolidated).
(Reference) Overview of Non-consolidated financial results
1.
Results for the six months ended September 30, 2007 (From April 1, 2007 to September 30, 2007)(1) Results of Operations (Note: % shows increase/decrease ratio against the six months ended September 30, 2006)
Net Sales
Operating Income
Recurring Income
Net Income

Six months ended September 30, 2007
Six months ended September 30, 2006
Year ended March 31, 2007

Millions of yen %Millions of yen %Millions of yen %Millions of yen %67,192
62,134
127,4076,500 40.8
4,615 (17.6)
10,696-

6,207 29.3
4,802 (19.5)
11,031-

3,575 (34.6)
5,465 167.9
10,420-Net Assets

Equity Ratio

Net Assets per Share

8.1
8.0
-

Earnings per ShareYen

Six months ended September 30, 2007
Six months ended September 30, 2006
Year ended March 31, 2007

56.32
86.04
164.08(2) Financial Position
Total Assets

Millions of yen
Millions of yen
Yen%
Six months ended September 30, 2007
306,436
131,924
2,078.49
43.1
284,700
125,376
1,974.34
44.0
Six months ended September 30, 2006
Year ended March 31, 2007
306,347
133,76843.7
2,107.07
Note: Shareholders’ Equity: Six months ended September 30, 2007 131,924 million yen, Six months ended September 30, 2006 125,376 million yen, Year ended March 31, 2007 133,768 million yen

2. Projections for the Results of the Year ending March 31, 2008 (From April 1, 2007 to March 31, 2008)(Note: % shows increase/decrease ratio against March 31, 2007)
Earnings
OperatingRecurring
Net Income
Net Sales
per Share
IncomeIncomeYear ending
March 31, 2008

Millions of yen %Millions of yen %Millions of yen %Millions of yen %Yen129,000 1.3

11,35011,3506,350 (39.1)

100.046.1

2.9*Disclaimer regarding projection information including appropriate use of forecasted financial results, 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 to changes incircumstances and other developments. More information concerning these forecasts can be found in section 1.
Business results on page 3 in the attachments.

-2-

1. Business Results(1) Analysis concerning business results[1] Overview of business results for the current interim period
Japanese economy for the current interim period under review was in the gradual recovery
supported by firm capital investment, in spite of augmenting worries about negative factors
such as rises of oil prices and interests, and individual consumption being in standstill.
Under such circumstances, we have always endeavored innovation of technology topromote development of medical equipment in the unique view, put effort into the oral drug
business on top of the injection drug business, and, furthermore, made effort to be a true
global enterprise and a leading brand to be recognized world widely in the field of artificialorgans and regenerative medicine.
As a result, the consolidated net sales for the current interim period under review
decreased 15.9% to 84,288 million yen, mainly because the sales of Store Business which
recorded 26,428 million yen in the same period of the previous year, decreased forwithdrawal of the business.
The net sales in the Medical Equipment Business rose 18.1%, compared with the same
period of the previous year, to 54,196 million yen. The net sales in the PharmaceuticalBusiness rose 20.0%, compared with the same period of the previous year, to 24,396 million
yen. The net sales in the Glass and Materials Business decreased 23.6%, compared withthe same period of the previous year, to 5,365 million yen. The net other sales decreased
45.0%, compared with the same period of the previous year, to 330 million yen.
The consolidated operating income rose 25.1% to 7,432 million yen, and consolidated
recurring income rose 34.2% to 6,537 million yen, compared with the same period of theprevious year. On the other hand, net income decreased 17.1% from the same period of theprevious year to 3,328 million yen, due to the decrease of extraordinary gains. Businesssituations by segment are as follows.
[2] Situation by segment
a. Medical Equipment division
For the domestic business, its environment has been severe as functional classification
for dialyzer and downward pressure on medical cost in hospitals have been more intensified,
and furthermore, hospitals started joint purchase arrangement for consumables andcompetitions of sales and price reduction became harder.
Under such circumstances, we sought to enhance the efficiency of sales activities,
strengthen the staffs for sales and made efforts to develop and launch new products in thefields 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 thesystematized package and to expand both our market shares and sales.
On the other hand, as for the international business, the active expansion of the businesshas been promoted to secure new customers by reinforcing the sales organization andproduct specialists. In the field of artificial lung, we have started to sell in 30 oversea
countries, and in the field of dialysis related products, we reinforced our response ability
against the market by increasing the product portfolio as well as made effort to expand salesof the other dialysis related supplies by upgrading its quality and competitive price. Injection
related products recorded highly better results comparing with the previous year as well as
OEM business showed a good growth by launching new products.
As a result, net sales of the division rose 18.1% to 54,196 million yen.

-3-

b. Pharmaceutical division
In the Pharmaceutical division, the environment of market remained very severe, due tothe governmental controls to suppress medical expenditures growing year by year and to theintensified price competition. Under such circumstances, we strove to increase sales ofpowdered dialysate solutions, and kit product of substitution fluid for hemofiltration andhemodiafiltration, and pre-filled syringe preparations. We also exerted ourselves to expand
sales of “liquid-and-powder” double-bag kits, and plastic-ampoules, which resulted aprosperous growth in this division.
As a result, net sales of the division rose 20.0% from the same period of the previous
year to 24,396 million yen.
c.

Glass & Materials Division

In the Glass & Materials division, in the filed of glass for pharmaceutical purposes, sales ofglass tubes for ampoule decreased due to the drop of domestic needs, however, net salesof glasses for tubes bottle for medical use or makeup use increased as well as cartridge andpre-filled syringe. On the other hand, glasses for vacuum bottle decreased due to decline ofdomestic sales in spite of good effort in export sales and glasses for lighting purpose also
decreased due to substantial sales decrease of glasses for Liquid Cristal Display (LCD)
backlight and related materials, affected by inventory adjustment and execution of cost
reduction in the market of Flat Panel Display.
As a result, net sales of the division decreased 23.6% to 5,365 million yen.
d. Other division
Net sales of this division, consisting mainly of sales of machine for manufacture of medical
equipment and real estate rentals, decreased 45.0 % to 330 million yen.
[3] Prospects for the Fiscal Year Ending March 31, 2008 and the prospects by segment
The business environment is anticipated to remain severe, with concerns about
appreciation of crude-oil prices and rise of interest rate, or concerns about risk ofappreciation of yen in exchange markets. However we will strive to improve the businessperformance by focusing on development of new products and reinforcement of production
capacity and sales capability.
For the year ending March 31, 2008, we project the consolidated net sales of 162,000
million yen (decrease 12.1% compared with the previous period), operating income of
14,100 million yen (increase 8.0%), recurring income of 13,050 million yen (increase 14.9%),
and net income of 6,600 million yen (decrease 22.9%).
Projections on net sales by segments are as follows:
Medical division:

103,000 million yen(increase

Pharmaceutical division:

48,000 million yen(increase 13.9%)

Glass and Materials division:

10,500 million yen(decrease 18.7%)

500 million yen(decrease 50.9%)

162,000 million yen(decrease 12.1%)

Other division:
Total:

-4-

5.9%)

(2)

Analysis concerning (Consolidated) financial position[1] Condition of assets, liabilities and net assets
Total assets at the end of the current interim period under review increased 5,309 million
yen from the end of the previous period to 341,968 million yen. Current assets decreased
3,528 million yen to 143,704 million yen, and fixed assets increased 8,837 million yen to198,263 million yen. Main reason for the decrease in current assets was that cash on handand in banks decreased, and main reason for the increase in fixed assets was that buildings& structures and machinery in tangible fixed assets increased.
On the other hand, total liabilities at the end of the current interim period under review
increased 6,029 million yen to 215,668 million yen. Current liabilities increased 15,913
million yen to 120,018 million yen, and the fixed liabilities decreased 9,884 million yen to95,650 million yen. Main reason for the increase in current liabilities was that current portionof bonds increased, and main reason for the decrease in fixed liabilities was that bonds
decreased.
Net assets decreased 720 million yen to 126,300 million yen. The main reason of
decrease was that valuation difference of other securities decreased.

[2] Condition of cash flows
Cash and cash equivalent at the end of the current interim period under review decreased
12,991 million yen to 33,118 million yen from the previous period.
The condition and reasons of each cash flow for the period are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 1,931 million yen, decreased by 6,053
million yen comparing with the same period of the previous year. The main elements ofpositive cash flow were net income before adjustment of taxes, 6,017 million yen, anddepreciation, 6,871 million yen. The main elements of negative cash flow were increase of
inventory, 3,824 million yen and payments of corporate income tax, 7,586 million yen.
(Cash flows from investing activities)
Net cash paid in investing activities was 15,737 million yen, increased 22,883 million yen.
It is mainly because of payments of 11,951 million yen for acquisition of fixed assets.
(Cash flows from financing activities)
Net cash provided by financing activities was 467 million yen, increased 24,413 million yen
comparing with the same period of the previous year. It is mainly because of proceeds fromlong-term borrowing.
Trend of the cash flow indicators is as follows.

33.2

Six months
ended
Sep. 30, 2006
35.7

33.9
21.1
4.6

Year ended
March 31, 2006
Shareholders’ equity ratio (%)
Ratio of market value ofshareholders’ equity (%)
Debt redemption (years)
Interest coverage ratio

-5-

37.3

Six months
ended
Sep. 30, 2007
36.5

42.8

43.4

42.1

8.6

8.3
8.5

2.2

Year ended
March 31, 2007

Note:

Shareholders’ equity ratio = Shareholders’ equity / Total Assets
Ratio of market value of shareholders’ equity = Aggregate market value of theoutstanding shares / Total Assets
Debt redemption = Interest-bearing liabilities / Cash flow from operating activities(The figures of interim period are not presented.)
Interest coverage ratio = Cash flows 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 interim consolidated statements of cash flows. Interest-bearing liabilities
represent all liabilities on the interim consolidated balance sheets for which interest is
payable. The amount of interest payments is taken from the payments of interestson the interim consolidated statements of cash flows.
(3) Basic Policies on Distribution of Profits and Dividends for years ending March 31, 2008
As we position profit return in the important administrative measures, our policy is that
50% of the non-consolidated net income is to be distributed to the shareholders. Orienting arational system for distribution of profits linked to operation results, not only the bonuses ofthe directors and the statutory auditors but also the employees’ bonuses are determinedbased on the business performance of the Company.
Retained earnings are to be invested in the sales and production facilities as well as inresearch and development actively and strategically, so as to ensure high profitability and torealize durable growth.
In terms of the payment of dividends after the enforcement of corporate law in Japan, we
will pay at the end of the interim period and at the end of the fiscal year, as before. Thus,
interim dividends are determined to be 28.00 yen per share.

-6-2. Corporate GroupOur group consists of the Reporting Company (“the Company”), its 29 subsidiaries and 1 affiliate,
and is primarily engaged in manufacture and sale of medical equipment, pharmaceutical products andglass and material products.
Positioning of each company in connection with the businesses of our group and the relation to thebusiness segments are as follows:<Medical Equipment Division>
Domestic:

The Company and Nipro Medical Industries, Ltd. manufacture medical equipment,
and the Company sells medical equipment manufactured by its foreign subsidiaries.

Overseas:

Nipro (Thailand) Corporation Ltd. (Thailand), Nipro (Shanghai) Co., Ltd. (China) andNipro Medical LTDA. (Brazil) purchase some of raw materials and machinery for theirproduction from the Company, manufacture medical equipment, and sell through theCompany and its subsidiaries as well as locally on their own.
Nipro Europe N.V. (Belgium), Nipro Medical Corporation (U.S.A.), and Nipro Asia
Pte. Ltd. (Singapore) sell medical equipment etc. in the areas of their locations.
Nipro Diabetes Systems, Inc. (U.S.A.) develops and sells diabetes-related products
such as insulin pump.

<Pharmaceutical Division>
The Company, Nipro Pharma Corporation and Nipro Genepha Corporation, Zensei
Pharmaceutical Industries Co.,Ltd and Saitama Daiichi Pharmaceutical Co., Ltd.
manufacture and sell pharmaceutical products. Tohoku Nipro Pharmaceutical
Corporation manufactures pharmaceutical products.
Bipha Corporation, an affiliate accounted for by the equity method, is engaged 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 andsells other glass products.
In the Kanto area, Shinwa Shoji Co., Ltd. purchases glass tubes as raw materials
from the Company, and manufactures and sells glass products.

Overseas:

Shanghai Nissho Vacuum Flask Refill Co., Ltd. (China) sells internal glass sectionsof vacuum flask and other glass products.

<Other>
The Company manufactures (purchases, in some cases) and sells machinery for
manufacture of medical equipment, etc.
The Company and Wasyu Kogyo Co., Ltd. lease real estate properties.
Nissho Insurance Services Co., Ltd. operates non-life insurance agency mainly forthe group companies.
Sanri Kosan Co., Ltd., an other related company, is engaged in leasing of real estate
properties.

The above explanations are illustrated as follows:-7-

(Domestic)(Overseas)

Medical Equipment Division

Medical Equipment Division<Manufacture><Manufacture and Sale>◎Nipro (Thailand) Corporation◎Nipro Medical Industries, Ltd.

Ltd.

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

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

<Development and Sale>◎ Saitama Daiichi Pharmaceutical Co., Ltd.
<Manufacture>◎Nipro Diabetes Systems, Inc.

Nipro Corporation◎Tohoku Nipro
Pharmaceutical Corporation<Development,
and Sale>

Manufacture□Bipha Corporation

Glass & Materials Division<Sale>

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

Refill Co., Ltd.

◎Shinwa Shoji Co., Ltd.

Supply of products andmerchandises
Supply of raw materials

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

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

◎

Consolidated subsidiary○

Unconsolidated subsidiary□

Affiliate accounted for by theequity method△

Other related company

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

-8-

3. Management Policies(1) Basic Policies of Management
Since our foundation of year 1954 with concept of “technology innovation”, we have based
ourselves on technology to grow pursuing the technologies of which unique products canalways solve QOL (Quality of Life) of patients and subjects in Medical treatment sites, underphilosophy in contributing to the society through corporate activities.
As a management structure considering compatibility between “stability” and “growth” thatis most important for a company, we implement the “performance-linked remuneration
system” that is the rule of 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) Target Management Indicators
Our performance targets are to achieve 200 billion yen of 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 on consolidation base.
(3) Medium- and Long-term Management Strategies
In the Medical Equipment division, we are aiming at top share of our main product,
dialyzer in the world by intensive mass production, improvement of its quality and cost
reduction driven from full self-production from the raw materials produced by self-spinning of
hollow fibers. We will also strive to strengthen the product line-up and establishment of sales
bases in the field of artificial lung, which we are aiming to bring up to the world wide products
following to the dialyzer.
In the Pharmaceutical division, we reinforce our contract manufacturing ability in each fieldof injection drugs, oral drugs and external application drugs. On top of that, we enhance highvalue-added technology of formulation as new kit drugs and drug for Drug Delivery System(DDS) to promote the development type contract manufacturing. As for the generic products,
we also devote efforts to quality upgrading and cost reduction of the products to establish
mass production system entering oversea business development in the view, promoting
co-development or cooperation with other companies.
In the Glass and Materials division, we will reinforce competitiveness by reducing
manufacturing costs of various glass products based on our peerless glass processing
technologies, conduct global sales activities and strive to secure stable profit.
(4) Issues and Challenges that the Group Faces
In the domestic business of the Medical Equipment division, we will focus on
dialysis-related products such as dialyzers, blood tubing sets, and dialysis machines. We
will endeavor to react to the market needs promptly, develop and market new products,
improve the product quality, strengthen sales activities and increase the market share. As for
disposable related-products, in the field of cardiovascular products, we develop and-9-introduce new product such as PTCA balloon catheters, blood-clot trapping device andstents to enlarge product line-up and promote to strengthen market leading and sales, tosecure our share. We will also make efforts to expand our market share of injection andinfusion-related products, developing nutrition infusion related products as well as marketing
and reinforcing sales. In addition, as for the examination-related products, we will promote
development, marketing and reinforcing sales of new products of blood glucose monitoring
device for diabetics and test reagents, and strengthen sales of blood collection tubes forblood test and expand the market share by active marketing.
In the international business, toward further enhancement of oversea selling entities, we
make effort to reinforce product specialists, improve customer service, formulate network ofselling entities and strengthen function of logistic center. As for injection related products, weenhance more competitiveness in price and quality for the increase of customers’purchasing under tender system which intensifies sales competition. In the dialysis related
products, of our main products, we promote development of dialysis machine applying to all
regions, as high performance dialysis machines are requested. We also develop the
dialyzers capable for all of augmenting requests for price and performance in the market.
In the diabates related products, we engage in development and launch of point-of-care
products which further safety and function upgrading in accuracy is requested. We also
expand the cardiovascular related products and promote finding market in abroad forintervention related products and artificial lung related products.
In the pharmaceutical division, we are requested further complement of our productportfolio. As for injection drugs, we are to develop the new products such as“liquid-and-powder” double-bag kits of antibiotics, pre-filled syringes and injectables inplastic-ampoules, as well as to improve the products including prevention measures ofmalpractice. In terms of oral drugs, we continue to increase largely our self-development
items, and even promote co-developments. We continuously develop pharmaceuticallycontrived products of new drug type, for instance, drugs with prominent easiness to drink.
Furthermore, we will engage in active development and contract manufacturing in the field of
external application drugs such as transdermal therapeutic drugs, which has been newly
added to our business portfolio from the current period. We will promote to enlarge contract
manufacturing, including development of drugs, and selling channels, which will improve
productivity of pharmaceutical production factories of Nipro group. In addition, we will
make efforts for early realization of pharmaceutical products in application of recombinanthuman serum albumin such as artificial blood, DDS and drug of recombinant erythropoietin
as new development theme. We will endeavor to expand our pharmaceutical business byactively developing injection drugs including kit products, oral drugs and external application
drugs.
In the Glass and Materials division, we will continue to innovate glass-processing
technology applying to demands by the pharmaceutical industry, developing mainly glass
tubes as well as new materials actively to expand our sales. In terms of the glass forlighting purposes, we will continuously strive to increase sales of glass materials for Liquid
Cristal Display (LCD) backlights and glass-related products in the situation of worldwide
expansion of LCD business.

-10-

4.

Interim Consolidated Financial Statements(1) Consolidated balance sheets(Note: Amounts are truncated to one million yen)
PeriodAccounts

Previous interim period
As ofSeptember 30, 2006
Proportion
AmountCurrent interim period
As ofSeptember 30, 2007
Proportion
AmountPrevious period
As ofMarch 31, 2007
Proportion
Amount%%%(ASSETS)
Current Assets
Cash on hand and in banks

142,65244.6

143,70442.0

147,233

43,24034,87647,934accounts receivables

48,62654,78550,972Inventories

43,21445,46940,213

Deferred tax assets

3,639

3,062

3,033

Other current assets

4,382

6,020

5,581

Allowance for doubtful accounts

(450)

(510)

(501)

43.7

Trade notes and

Fixed Assets

177,08155.4

198,263

58.0

189,426

56.3

Tangible fixed assets

102,47632.1

118,33034.6

104,88131.2

Buildings and structures

39,11945,254

38,113

Machinery and vehicles

29,58535,29831,105Land

18,40819,242

18,032

Construction in progress

10,717

13,573

12,856

Others

4,644

4,961

4,773

Intangible fixed assets

1,618

0.5

2,711

0.8

1,902

Goodwill

260

887

240

Others

1,358

1,824

1,661

Investment and other assets

72,985Investment securities

64,59572,30477,304Long-term loans receivables

1,393

246

303

Deferred tax assets

508

49

61

Lease deposits

6,158

4,557

4,791

Other assets

3,494

3,117

3,198

Allowance for doubtful accounts(3,163)(3,054)(3,017)

Total Assets

319,733

22.8

100.0

- 11 -

77,221

341,968

22.6

100.0

82,642336,659

0.6

24.5

100.0

(Note: Amounts are truncated to one million yen)
PeriodAccounts

Previous interim period
As ofSeptember 30, 2006
Proportion
AmountCurrent interim period
As ofSeptember 30, 2007
Proportion
AmountPrevious period
As ofMarch 31, 2007
Proportion
Amount%%%(LIABILITIES)Current liabilities

100,758

31.5

120,01835.1

104,104

30.9

Trade notes andaccounts payables

31,84831,112

26,547

Short-term borrowings

43,23854,82050,209Current portion of bonds

60

10,16060

Other payables

4,220

5,132

6,123

Accrued income taxes

7,134

3,505

8,404

Allowance for bonuses payable

2,733

1,679

1,461

-

2

230

clearance of business

1,954

1,954

1,954

Notes payable for plant and equipment

4,814

7,777

3,655

Others

4,754

3,873

5,457

Fixed assets

102,808

Bonds

31,48021,32031,450with stock acquisition rights

14,00014,00014,000Long-term borrowings

39,633

41,16938,765

Deferred tax liabilities

13,302

14,993

17,417

Accrued pension and severance cost

2,783

2,349

2,564

-

502

-

1,609

1,315

1,336

Allowance for bonuses payablefor directors and corporate auditor
Allowance for loss on

32.2

95,65028.0

105,534

31.4

Convertible bond type bonds

Accrued severance indemnityfor directors and corporate auditors
Others203,56763.7

215,668

63.1

209,63962.3

94,83829.7

97,99028.7

97,044

28.8

Capital28,6639.0

28,663

8.4

28,663

8.5

Capital surplus

29,972

9.4

29,975

8.8

29,973

8.9

Earned surplus

36,904

11.5

40,128

11.7

39,148

11.6

Treasury stock

(701)

(0.2)

(776)

(0.2)

(741)

(0.2)

Valuation and translation differences

19,1996.0

26,892

7.8

28,606

8.5

Valuation differences of other securities

23,314

7.3

26,557

7.7

29,8838.9

Foreign currency translation adjustments(4,114)

(1.3)

335

0.1

(1,276)

(0.4)

2,128

0.6

1,417

0.4

1,369

0.4

Total Net Assets

116,166

36.3

126,300

36.9

127,020

37.7

Total Liabilities and Net Assets

319,733

100.0

341,968

100.0

336,659

100.0

Total Liabilities(NET ASSETS)
Shareholders’ equity

Minority interests- 12 -

(2) Consolidated Statements of Income(Note: Amounts are truncated to one million yen)
PeriodAccounts

Previous interim period(From April 1, 2006
To September 30, 2006)
AmountRatio

Current interim period(From April 1, 2007
To September 30, 2007)
AmountRatio

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

%

%

%

Net Sales

100,280 100.0

84,288100.0

184,362

100.0

Cost of goods sold72,443

72.2

59,83971.0

132,14271.7

27,83627.8

24,44829.0

52,22028.3

Selling, general and administrative expenses

21,89621.9

17,01520.2

39,167

21.2

Operating income

5,940

5.9

7,432

8.8

13,053

7.1

Non-operating income

657

0.7

827

1.0

1,657

0.9

Interest income

133

210

308

Dividend income

295

313

560

Exchange gain

-

-

313

227

303

475

Gross profit

OthersNon-operating expenses

1,727

1.7

1,723

2.0

3,355

Interest expense

830

888

1,645

Exchange loss

0

148

-

Depreciation

204

167

381

Equity in loss of affiliate

356

397

791

Others

336

122

1.8

537

Recurring income

4,869

4.9

6,537

7.8

11,355

6.2

Extraordinary gains

9,625

9.6

283

0.3

13,660

7.4

Gain on sales of fixed assets

18

16

30

Life insurance income

-

191

-

Govermental subsidies received

-

4

661

Gain on sale of investment securities

9,576

-

12,706

29

71

261

OthersExtraordinary losses

6,571

6.6

803

1.0

8,240

Loss on sale and disposal of fixed assets

219

122

516

Impairment loss on fixed assets

1,286

-

1,286

Allowance for loss on clearance of business

1,954

-

1,954

Loss on investment securities

268

-

268

Loss on disposal of inventories

100

31

253

Abnormal manufacturing cost

134

64

246

Advanced depreciation on fixed assets

-

3

650

Allowance for doubtful debts

2,306

12

2,361

-

471

-

300

96

703

4.5

Allowance for accrued severance indemnityfor directors and corporate auditors in prior years
OthersNet(Interim) income before adjustment of taxes

7,923

7.9

6,017

7.1

16,775

9.1

Corporate, inhabitants and enterprise taxes

6,573

6.6

2,692

3.2

10,0595.5

Adjustment for deferred taxes(2,656)

(2.7)

(29)

(0.0)

(1,873)(1.0)

in net income of consolidated subsidiaries

(10)

(0.0)

26

0.0

33

0.0

Net (Interim) income

4,016

4.0

3,328

3.9

8,555

4.6

Minority shareholders’ share- 13 -

(3) Consolidated Statement of Shareholders’ Equity
Previous interim period (From April 1, 2006 to September 30, 2006)(Note: Amounts are truncated to one million yen)

Shareholders’ equity
CapitalBalance at March 31, 2006

CapitalEarnedTreasury

surplussurplusstock

28,66329,972

34,545

Total
shareholders’equity(648)

92,532

Increase(decrease) during the period
Dividends of surplus(1,365)(1,365)

(91)

(91)

4,016

4,016

Bonuses to directors and corporate
auditors

Net interim income
Acquisition of treasury stock
Disposal of treasury stock

(56)

(56)

3

4

0

Decrease in earned surplus due to(201)

addition of consolidated subsidiaries(201)

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

-

0

2,358

(52)

2,306

28,66329,97236,904(701)

94,838Net increase(decrease) during the period

Balance at September 30, 2006

Valuation and translation differences

Balance at March 31, 2006

Valuation

Foreign

Total

differences

currency

valuation andof othertranslationtranslation

securities

adjustment

differences

25,563(5,705)

Minority
interests

Total
net
assets19,8581,612

114,003

Increase(decrease) during the period
Dividends of surplus-(1,365)-(91)

Net interim income

-

4,016

Acquisition of treasury stock

-

(56)

Disposal of treasury stock

-

4

-

(201)

Bonuses to directors and corporate
auditors

Decrease in earned surplus due toaddition of consolidated subsidiaries
Increase(decrease) of the items other than

(2,249)

1,590

(659)

515

(143)

Net increase(decrease) during the period(2,249)

1,590

(659)

515

2,163

Balance at September 30, 2006

23,314(4,114)19,1992,128

116,166

shareholders’ equity during the period- 14 -

Current interim period (From April 1, 2007 to September 30, 2007)(Note: Amounts are truncated to one million yen)

Shareholders’ equity
CapitalBalance at March 31, 2007

CapitalEarnedTreasury

surplussurplusstock

28,66329,97339,148

Total
shareholders’equity(741)

97,044

Increase(decrease) during the period
Dividends of surplus(2,348)(2,348)Net interim income

3,328

3,328

Acquisition of treasury stock
Disposal of treasury stock

(42)

(42)

6

8

2

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

-

2

979

(35)

946

28,66329,97540,128(776)

97,990Net increase(decrease) during the period

Balance at September 30, 2007

Valuation and translation differences

Balance at March 31, 2007

Valuation

Foreign

Total

differences

currency

valuation andof othertranslationtranslation

securities

adjustment

differences

29,883(1,276)

Minority
interests

Total
net
assets28,606

1,369

127,020

Increase(decrease) during the period
Dividends of surplus-(2,348)Net interim income

-

3,328

Acquisition of treasury stock

-

(42)

Disposal of treasury stock-

8

Increase(decrease) of the items other than

(3,326)

1,612(1,714)48(1,666)

Net increase(decrease) during the period(3,326)

1,612(1,714)48(720)

Balance at September 30, 2007

26,557335

26,892

1,417

126,300

shareholders’ equity during the period- 15 -

Previous period (From April 1, 2006 to March 31, 2007)(Note: Amounts are truncated to one million yen)
Shareholders’ equity

CapitalBalance at March 31, 2006

CapitalEarnedTreasury

surplussurplusstock

28,66329,972

34,545

Total
shareholders’equity(648)

92,532

Increase(decrease) during the period
Dividends of surplus(4,096)(4,096)

(91)

(91)

8,555

8,555

Bonuses to directors and corporate
auditors

Net income
Acquisition of treasury stock
Disposal of treasury stock

(101)

(101)

9

10

1

Increase in earned surplus due to

436

436

(201)

(201)

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

-

1

4,602

(92)

4,512

28,66329,97339,148(741)

97,044

Net increase(decrease) during the period

Balance at March 31, 2007

Valuation and translation differences

Balance at March 31, 2006

Valuation

Foreign

Total

differences

currency

valuation andof othertranslationtranslation

securities

adjustment

differences

25,563(5,705)

Minority
interests

Total
net
assets19,8581,612

114,003

Increase(decrease) during the period
Dividends of surplus-

Bonuses to directors and corporate(4,096)(91)-

auditors

Net income

-

8,555

Acquisition of treasury stock

-

(101)

Disposal of treasury stock

-

10

-

436

-

(201)

Increase in earned surplus due todivest of consolidated subsidiaries
Decrease in earned surplus due toaddition of consolidated subsidiaries
Increase(decrease) of the items other than

4,319

4,428

8,748

(243)

8,505

Net increase(decrease) during the period

4,319

4,428

8,748

(243)

13,017

Balance at March 31, 2007

29,883(1,276)28,606

1,369

127,020

shareholders’ equity during the period- 16 -

(4) Consolidated Statement of Cash Flows
PeriodAccounts(Note: Amounts are truncated to one million yen)Previous interim period(From April 1, 2006
To September 30, 2006)

Current interim period(From April 1, 2007
To September 30, 2007)

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

AmountAmountAmountCash flows from operating activities
Net income before adjustment for taxes
Depreciation and amortization
Impairment loss on fixed assets
Amortization of goodwill
Equity in loss of affiliate
Allowance for doubtful accounts
Allowance for loss on clearance of business
Increase(decrease)in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Exchange loss(gain)
Gain on sales of shares of subsidiary company
Decrease(increase) in trade receivables
Decrease(increase) in inventories
Increase(decrease) in trade payables
Decrease(increase) in other assets
Increase(decrease) in other liabilities
Bonuses to directors and corporate auditors
Other non-operating income/expenses and extraordinary gains/losses
Sub totalInterest and dividends received
Interest paid
Other revenues
Other expenditures
Income taxes paid
Cash flows from operating activities

7,923
5,855
1,286
100
356
2,306
1,954
97
(429)
830
79
(9,576)(1,488)(2,657)
1,776
247
1,352
(96)
773
10,692
396
(923)
658
(182)
(2,658)
7,984

6,017
6,871
106
397
3
(524)
888
(198)
(1,985)(3,824)2,623
202(1,109)
(104)
9,365
546
(861)
674
(208)
(7,586)
1,931

16,775
12,469
1,286
129
791
2,361
1,954
(92)
(868)
1,645
(68)
(12,706)(2,186)(3,061)(1,982)
(565)
2,678
(96)
882
19,347830(1,697)1,590(262)(5,320)14,488Cash 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 with change in scope of consolidated subsidiary
Payments for investment with change in scope of consolidated subsidiary
Proceeds from sales of shares with change in scope of consolidated subsidiaries
Payments for acquisition of fixed assets
Proceeds from sales of fixed assets
Increase(decrease) in short-term lending
Collections of loans receivables
Expenditures for other investments
Revenues from other investments
Cash flows from investing activities(1,081)
2,642
(90)
24
(517)
15,264(8,669)
90
(539)
33
(50)
40
7,146

(1,307)
1,399(1,014)(2,479)(11,951)
56
(490)
29
(1)
21
(15,737)(5,792)
7,665(2,244)
24
(517)
(703)
19,372(19,911)273(1,078)59(112)
40(2,924)

Cash flows from financing activities
Net increase(decrease) in short-term borrowings
Net increase(decrease) in commercial paper
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payments from redemption of bonds
Proceeds from issuance of bonds
Proceeds from treasury stock
Payments for acquisitions of treasury stock
Repayments of finance lease obligations
Payments for dividends
Other payments
Cash flows from financing activities

2,389(9,000)930(6,665)(10,030)
4
(56)
(152)
(1,365)(0)(23,946)

776
8,633(6,507)
(30)
3
8
(42)
(14)
(2,345)
(14)
467

121
(9,000)20,853(13,181)(10,060)
10
(101)
(205)
(4,090)(0)(15,654)(15)(8,831)
49,914
77
41,160- 17 -

347(12,991)
46,10933,118208(3,881)
49,914
77
46,109Effect of exchange rate changes on cash and cash equivalents
Increase(decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalents due to inclusion of new subsidiary in consolidation
Balance of cash and cash equivalents at the end of the period

(5) Basis of Preparation for the Consolidated Financial Statements
1)

Scope of Consolidation[1] Consolidated subsidiaries: 24
Name of representative consolidated subsidiaries.
・ Nipro Medical Industries, Ltd.

・ Nipro (Thailand) Corporation Ltd.

・ Nipro Europe N.V.

・ Nipro Medical Corporation

・ Nipro Pharma Corporation

・ Tohoku Nipro Pharmaceutical Corporation

・ Saitama Daiichi Pharmaceutical Co., Ltd.
Nipro Sales Thailand Co., Ltd. was included in consolidation from the current interim period due to new
foundation, as well as Saitama Daiichi Pharmaceutical Co., Ltd. due to the acquisition of the stocks.
[2] Unconsolidated subsidiaries: 3
The unconsolidated subsidiaries, Nissho Insurance Services Co., Ltd., Nipro Trading (Shanghai) Co., Ltd., andWasyu Kogyo Co., Ltd., are small-sized companies, whose combined total assets, net sales, net income andearned 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 theconsolidated net income and earned surplus etc., either individually or in the aggregate.
3) Accounting Period of Consolidated Subsidiaries
Among the consolidated subsidiaries, accounts closing date of the foreign subsidiaries is June 30.
Consolidated financial statements as of that date are used in preparing for consolidated financial statements, andnecessary 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
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 of shareholders’equity. Costs are determined by the weighted average method.)
Securities withoutmarket quotations ············ Valued at cost by the weighted average method
Inventories
Valued at cost principally by the weighted average method.
[2] Method of depreciation and amortization for significant depreciable assets
Tangible fixed assets: ······ Declining-balance method
Except buildings acquired after April 1, 1998 (excluding attached structures),are depreciated by straight-line method.
The foreign subsidiaries use straight-line method in accordance with the tax
laws of their countries.

- 18 -

[3] Standards for recognition of significant allowances
Allowance for doubtful
accounts ······························· In order to cover the probable losses on collection, an allowance for doubtful
accounts is provided for the estimated amount of uncollectible receivables.
For general receivables, the amount of provision is based on historical
write-off rates, and for the doubtful receivables, based on the specific collectability.
Allowance for bonuses
payables ····························· In order to cover the payment of bonuses to employees, an allowance isprovided for the estimated amount of bonuses to be paid, prorated for the
consolidated fiscal period.
Allowance for bonuses
payables for directors andcorporate auditors················· In order to cover the payment of bonuses to directors and corporate auditors,
an allowance is provided for the estimated amount of bonuses to be paid,corresponding to the consolidated fiscal period.
Allowance for loss on
clearance of business ········· In connection with withdrawal from retail business which we sold the shares of
the consolidated subsidiaries, the estimated loss at the end of theconsolidated fiscal period is posted for disposal of land, building and otherproperties to be sold accordingly.
Accrued pension andseverance cost ····················· An allowance is provided for employee’s pension and severance payments
based on the estimated amounts of projected benefit obligation and plan
assets at the end of the fiscal year.
Past service liabilities are expensed mainly for five years using thestraight-line method.
Actuarial difference is expensed in the following fiscal years after the year ofsuch recognition, using the straight-line method for five years.
Accrued severance indemnityfor directors and corporate auditors ··· An allowance is provided for severance indemnity for directors and corporate
auditors based on the amounts to be paid at the end of the consolidated fiscal
periods based on the internal regulation of the companies.
[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 translation differences 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. Translation differences are included in foreign currency translation adjustments in the Net
Assets section.
[5] Accounting method for lease transactions
Finance leases, except for those where ownership of the leased assets is deemed to be transferred to thelessee, are accounted for by the method similar to that applicable to ordinary operating leases.
[6] Other significant basis on preparation for consolidated financial statements
Consumption taxes
Consumption taxes are excluded from revenues and expenses accounts.
5) Range of cash and cash equivalent carried on the consolidated cash flow statement.
Cash and cash equivalent carried on the cash flow statement consist of cash on hand, cash in banks 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 of prices.
- 19 -

(6) Change in significant matter of basis of preparation for consolidated financial statements(Change in Accounting Method)
1) Change in depreciation method of tangible fixed assets
Revised the corporate income tax law (Law for revision of a part of income tax law and related law, published on
March 30, 2007, and Government ordinance for revision of a part of the enforcement ordinance of the corporate
income tax law, published on March 30, 2007, the enforcement ordinance no.83), we have changed the depreciation
method according to the method of the revised corporate income tax law for tangible fixed assets acquired on or after
April 1, 2007, from the consolidated fiscal year under review. As a result, gross profit decreased 144 million yen,operating income decreased 167 million yen, and recurring income and net income before adjustment of taxes
decreased 177 million yen, comparing with the computation by the previous method.
As for the effect to the segment information, please see the notes in the segment information section.
2) Standard for recognition of accrued severance indemnity for directors and corporate auditors
Severance cost for directors and corporate auditors had been processed as expense when it was paid. However,
we have adopted since this interim period, “Treatment on audit concerning reserves based on the special taxation
measures law and reserves or provisions based on special laws” (Japan Institute Certified Public Accountants,
published on April 13, 2007, Audit, assurance practice committee report No.42) to provide accrued severance
indemnity for directors and corporate auditors at the end of the current interim fiscal period, according to the internal
regulation of the companies. As a result, selling, general and administrative expenses increased 24 million yen,operating income and recurring income decreased the same amount, and net income before adjustment of taxes
decreased 496 million yen, comparing with the computation by the previous standard.
As for the effect to the segment information, please see the notes in the segment information section.
(Additional information)
Change in depreciation method for tangible fixed assets
Revised the corporate income tax law(Law for revision of a part of income tax law and related law, published on
March 30, 2007, and Government ordinance for revision of a part of the enforcement ordinance of the corporate
income tax law, published on March 30, 2007, the enforcement ordinance no.83), we have depreciated, included incost of goods sold and selling, general and administrative expenses, the difference between 5% equivalent amountof acquisition cost of tangible fixed assets and its memorandum value for 5 years from next consolidated fiscal year
to consolidated fiscal year when reached to 5% of its acquisition cost which was depreciated by application of thecorporate income tax before the revision. As a result, gross profit decreased 161 million yen, operating income,recurring income and net income before adjustment of taxes decreased 185 million yen, comparing with thecomputation by the previous method.
As for the effect to the segment information, please see the notes in the segment information section.
(7) Notes to the consolidated financial statements(Notes to the consolidated balance sheets)(Previous interim period)(Current interim period)

104,254 mil. yen

126,856 mil. yen

108,725 mil. yen

51 mil. yen

46 mil. yen

87 mil. yen

3. Obligations under guarantee contracts

1,366 mil. yen

821mil. yen

1,093 mil. yen

4. Pledged assets

16,672 mil. yen

16,387 mil. yen

16,178 mil. yen

1. Accumulated depreciation of tangible fixed assets
2. Notes receivable discounted(Previous period)

5. Accounting process for matured bill on last day of the consolidated period
Matured bill at the ended date of the consolidated period and bank holiday was processed on the traded date of bill.
Accordingly, the matured bill at the ended date of each consolidated periods was included in the following accounts.
(Previous interim period)(Current interim period)(Previous period)

Trade notes receivables

905 mil. yen

781 mil. yen

1,095 mil. yen

Trade notes payables

581 mil. yen

437 mil. yen

453 mil. yen

Trade notes payables for plant and equipment--

23 mil. yen- 20 -

mil. yenmil. yen(Notes to the consolidated statements of shareholders’ equity)

Previous interim period (From April 1, 2006 to September 30, 2006)

1) Sort and total numbers of shares issued
Sort of shares

Number of shares

Increased numbers

Decreased numbers

Number of shares

As of March 31, 2006
Common stock

As of September 30, 2006

63,878,505--

63,878,505

2) Sort and numbers of treasury stock
Sort of shares

Number of shares

Increased numbers

Decreased numbers

Number of shares

As of March 31, 2006
Common stock

As of September 30, 2006

349,589

27,721

1,995

375,315(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

3) Dividends[1] Amount of dividends paid
Decision

Sort of shares

June 29, 2006 at ordinary
general shareholders’ meeting

Total amount ofdividends paid

Dividends
per shares

Million of yen

Yen

Common stock

1,365

21.50

Basis date

Effective date

March 31, 2006

June 30, 2006

[2] Dividends of basis date belonging to the consolidated fiscal period with effective on date after the consolidated fiscal
period.
Decision

Sort ofsharesProceeds ofdividends

November 20, 2006 at
meeting of board of directors

Commonstock

Earnedsurplus

Total amount ofdividends paid

Dividends
per shares

Million of yen

Yen

2,730

43.00

Basis date

Effective date

September 30, 2006

December 8, 2006

Current interim period (From April 1, 2007 to September 30, 2007)
1) Sort and total numbers of shares issued
Sort of shares

Number of shares

Increased numbers

Decreased numbers

Number of shares

As of March 31, 2007
Common stock

As of September 30, 2007

63,878,505--

63,878,505

2) Sort and numbers of treasury stock
Sort of shares

Number of shares

Increased numbers

Decreased numbers

As of March 31, 2007
Common stock

Number of shares
As of September 30, 2007

393,067

17,585

3,637(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.
- 21 -

407,015

3) Dividends[1] Amount of dividends paid
Decision

Sort of shares

June 27, 2007 at ordinary
general shareholders’ meeting

Total amount ofdividends paid

Dividends
per shares

Million of yen

Yen

Common stock

2,348

37.00

Basis date

Effective date

March 31, 2007

June 28, 2007

[2] Dividends of basis date belonging to the consolidated fiscal period with effective on date after the consolidated fiscal
period.
Decision

Sort ofsharesProceeds ofdividends

November 19, 2007 at
meeting of board of directors

Commonstock

Earnedsurplus

Total amount ofdividends paid

Dividends
per shares

Million of yen

Yen

1,777

28.00

Basis date

Effective date

September 30, 2007

December 10, 2007

Previous period (From April 1, 2006 to March 31, 2007)
1) Sort and total numbers of Shared issues
Sort of shares

Number of shares

Increased numbers

Decreased numbers

Number of shares

As of March 31, 2006
Common stock

As of March 31, 2007

63,878,505--

63,878,505

2) Sort and numbers of Treasury stock
Sort of shares

Number of shares

Increased numbers

Decreased numbers

As of March 31, 2006
Common stock

Number of shares
As of March 31, 2007

349,589

48,487

5,009

393,067(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

3) Dividends[1] Amount of dividends paid
Decision
June 29, 2006 at ordinary
general shareholders’ meeting
November 20, 2006 at meetingof board of directors

Sort of shares

Total amount ofdividends paid

Dividends
per shares

Million of yen

Yen

Common stock

1,365

21.50

Million of yen
Common stock

2,730

Basis date

Effective date

March 31, 2006

June 30, 2006

September 30, 2006

December 8, 2006

Yen
43.00

[2] Dividends of basis date belonging to the consolidated fiscal period with effective date in the next consolidated fiscal
period.
Decision

Sort ofsharesProceeds ofdividends

June 27, 2007 at ordinary generalshareholders’ meeting

Commonstock

Earnedsurplus

Total amount ofdividends paid

Dividends
per shares

Million of yen

Yen

2,348

- 22 -

37.00

Basis date

Effective date

March 31, 2007

June 28, 2007

(Segment information)
1. Segment information by business category
Previous interim period(From April 1, 2006 to September 30, 2006)
PharmaMedical
Equipment ceutical(Note: Amounts are truncated to one million yen)

Glass &
Materials

Store

Other

Total

20,331

7,021

26,428601

100,280

-

-

1,645

-

188

1,837

( 1,837)

Eliminations/
ConsoliatedCorporate

Net sales(1)Sales tothird parties(2)Inter-segment sales
and transfers

45,897

Total

45,901

20,331

8,666

26,428789

102,117( 1,837)

100,280

Operating expenses

38,996

18,8807,699

26,193648

92,418

1,921

94,339Operating income(loss)

6,905

1,450

966

234

140

9,698

( 3,758)

5,940

3

Current interim period(From April 1, 2007 to September 30, 2007)-(Note: Amounts are truncated to one million yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials

Other

Total

Net sales(1)Sales tothird parties(2)Inter-segment sales
and transfers

54,196

24,3965,365

330

84,288

-

-

1,635

35

1,670

Total

54,196

24,3967,000

36585,959Operating expenses

45,86422,5006,146

364

74,875

Operating income(loss)

8,331

1,896

854

1

11,083

Previous period(From April 1, 2006 to March 31, 2007)
PharmaMedical
Equipment ceutical

100,280

Eliminations/
Corporate

Consoliated-84,288(

1,670)-(

1,670)

84,2881,980

76,855

3,651)

7,432((Note: Amounts are truncated to one million yen)

Glass &
Materials

Store

Other

Total

42,152

12,91830,973

1,017

184,362

-

-

3,445

-

220

3,668

( 3,668)

Eliminations/
ConsoliatedCorporate

Net sales(1)Sales tothird parties(2)Inter-segment sales
and transfers

97,300Total

97,30342,152

16,36430,973

1,238

188,031( 3,668)

184,362

Operating expenses

82,97038,854

14,49830,702

1,087

168,113

3,195

171,309

Operating income(loss)

14,333

3,298

1,865

270

150

19,918( 6,864)

13,053

3- 23 -

184,362-

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 of usageof the products in the market.
Main products belonging to each business categories are as follows:Business
category

Main products and commodities

MedicalEquipment

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

Pharmaceutical

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

Glass&Materials

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

Store

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

Other

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

2. Operating expenses of “Eliminations/Corporate” for the previous interim consolidated period, thecurrent interim consolidated fiscal period and the previous consolidated fiscal period included
unallocated corporate costs of 3,758 million yen, 3,651 million yen and 6,864 million yen, respectively.
The unallocated corporate costs consisted primarily of the parent company’s research anddevelopment costs and headquarters administration costs.
3. As described in “Changes in accounting method” 1), revised the corporate income tax law, we haveadopted the depreciation method based on the revised corporate income tax law for tangible fixed
assets acquired on or after April 1, 2007, from the current interim consolidated fiscal period. As aresult, operating expenses in Medical Equipment, Pharmaceutical, Glass&Materials andElimination/Corporate segment, are supposed to be increasing 56 million yen, 96 million yen, 1 million
yen and 13 million yen respectively, and operating incomes are supposed to be decreasing
respectively, comparing with the incomes calculated according to the previous method.
4. As described in “Changes in accounting method” 2), applied “Treatment on audit concerning reserves
based on the special taxation measures law and reserves or provisions based on special laws” fromthe current interim consolidated fiscal year, we have changed the standard of recognition of theamount to be paid at the end of the current interim fiscal period for severance indemnity for directors
and corporate auditors as a provision. As a result, operating expenses in Pharmaceutical andElimination/Corporate segment, are supposed to be increasing 16 million yen and 8 million yen
respectively, and operating incomes are supposed to be decreasing respectively, comparing with theincomes calculated according to the previous standard.
5. As described in “Additional information”, revised the corporate income tax law, we have depreciated,
included in cost of goods sold and selling, general and administrative expenses, the difference
between 5% equivalent amount of acquisition cost of tangible fixed assets and its memorandum value
for 5 years from next consolidated fiscal year to consolidated fiscal year when reached to 5% of its
acquisition cost which was depreciated by application of the corporate income tax before the revision.
As a result, operating expenses in Medical Equipment, Pharmaceutical, Glass&Materials, Others andElimination/Corporate segment, are supposed to be increasing 58 million yen, 97 million yen, 19
million yen, 0 million yen, and 10 million yen respectively, and operating incomes are supposed to be
decreasing respectively, comparing with the incomes calculated according to the previous method.

- 24 -

2) Segment information by geographical area
Previous interim period(From April 1, 2006 to September 30, 2006)(Note: Amounts are truncated to one million yen)
Eliminations
Consolidated/Corporate

Japan

America

Europe

Asia

Total

87,774

7,357

3,320

1,828

100,280

11,370

332

3

5,758

17,464(

17,464)

Total

99,144

7,689

3,323

7,586

117,744(

17,464)

100,280

Operating expenses

89,202

8,217

3,190

7,277

107,887(

13,547)

94,339Operating income(loss)

9,942

(528)

133

309

9,857

(

3,916)

5,940

Net sales(1)Sales tothird parties(2)Inter-segment sales
and transfers

Current interim period(From April 1, 2007 to September 30, 2007)
America

Europe

Asia

Total

66,818

9,864

4,455

3,149

84,28813,914

604

5

6,829

21,354

Total

80,733

10,468

4,461

9,978

Operating expenses

69,125

11,036

4,229

Operating income(loss)

11,608(568)

231

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

100,280-(Note: Amounts are truncated to one million yen)Japan
Net sales(1)Sales tothird parties(2)Inter-segment sales
and transfers-

Eliminations
Consolidated/Corporate-

84,288(21,354)-

105,642(

21,354)84,288

9,563

93,955(17,099)76,855415

11,687(4,254)

7,432(Note: Amounts are truncated to one million yen)
Eliminations
Consolidated/Corporate

Japan

America

Europe

Asia

Total

156,042

17,382

7,102

3,835

184,362

23,610804

86

12,37336,875(36,875)

Total

179,653

18,186

7,188

16,208221,238(

36,875)

184,362

Operating expenses

159,255

19,133

7,050

15,755201,193(

29,884)

171,309

Operating income(loss)

20,398

(946)

138

453

20,044(

6,991)

13,053

Net sales(1)Sales tothird parties(2)Inter-segment sales
and transfers- 25 --

184,362-

Note

1. Operating expenses of “Eliminations/Corporate” for the previous interim consolidated fiscal period, thecurrent interim consolidated fiscal period and the previous consolidated fiscal period included
unallocated corporate costs of 3,758 million yen, 3,651 million yen and 6,864 million yen, respectively.
The unallocated corporate costs consisted primarily of the parent company’s research anddevelopment costs and headquarters 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, Thailand and Singapore
4. As described in “Changes in accounting method” 1), revised the corporate income tax law, we haveadopted the depreciation method based on the revised corporate income tax law for tangible fixed
assets acquired on or after April 1, 2007, from the current interim consolidated fiscal period. As aresult, operating expenses in Japan and Elimination/Corporate segment, are supposed to be
increasing 154 million yen and 13 million yen respectively, and operating incomes are supposed to be
decreasing respectively, comparing with the incomes calculated according to the previous method.
5. As described in “Changes in accounting method” 2), applied “Treatment on audit concerning reserves
based on the special taxation measures law and reserves or provisions based on special laws” fromthe current interim consolidated fiscal year, we have changed the standard of recognition of theamount to be paid at the end of the current interim fiscal period for severance indemnity for directors
and corporate auditors as a provision. As a result, operating expenses in Japan andElimination/Corporate segment, are supposed to be increasing 16 million yen, 8 million yen, andoperating incomes are supposed to be decreasing respectively, comparing with the incomes
calculated according to the previous standard.
6. As described in “Additional information”, revised the corporate income tax law, we have depreciated,
included in cost of goods sold and selling, general and administrative expenses, the difference
between 5% equivalent amount of acquisition cost of tangible fixed assets and its memorandum value
for 5 years from next consolidated fiscal year to consolidated fiscal year when reached to 5% of its
acquisition cost which was depreciated by application of the corporate income tax before the revision.
As a result, operating expenses in Japan and Elimination/Corporate segment, are supposed to be
increasing 175 million yen and 10 million yen respectively, and operating incomes are supposed to be
decreasing respectively, comparing with the incomes calculated according to the previous method.

3) Overseas sales
Previous interim period(From April 1, 2006 to September 30, 2006)

1

Overseas sales

2

Consolidated net sales

3

Percentage of overseas sales
to consolidated net sales

America

Europe

Asia

Total

14,524

7,017

3,727

25,268100,280

14.5%

7.0%

Current interim period(From April 1, 2007 to September 30, 2007)

1

Overseas sales

2

Consolidated net sales

3

Percentage of overseas sales
to consolidated net sales(Note: Amounts are truncated to one million yen)

3.7%

25.2%

(Note: Amounts are truncated to one million yen)

America

Europe

Asia

Total

17,429

9,426

4,945

31,801
84,288

20.7%

11.2%

- 26 -

5.8%

37.7%

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

1

Overseas sales

2

Consolidated net sales

3

Percentage of overseas sales
to consolidated net sales

Notes:(Note: Amounts are truncated to one million yen)

America

Europe

Asia

Total

31,89915,071

7,567

54,538184,362

17.3％

8.2％

4.1％

29.6％

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, India, Indonesia, Taiwan and Thailand(Lease transactions）
Finance lease transaction, except for those where ownership of the leased assets is deemed to be transferredto the lessee(Previous interim period)(Current interim period)(Previous period)

Acquisition value equivalent

3,680 mil. yen

2,875 mil. yen

3,894 mil. yen

Accumulated depreciation equivalent

2,468 mil. yen

1,741 mil. yen

2,569 mil. yen

Book value equivalent

1,212 mil. yen

1,133 mil. yen

1,324 mil. yen

Due within one year

574 mil. yen

670 mil. yen

523 mil. yen

Due after over one year

851 mil. yen

682 mil. yen

630 mil. yen

Total

1,425 mil. yen

1,353 mil. yen

1,154 mil. yen

Lease payments

355 mil. yen

299 mil. yen

585 mil. yen

Depreciation equivalent

274 mil. yen

275 mil. yen

503 mil. yen

Interest expense equivalent

35 mil. yen

23 mil. yen

49 mil. yen

Lease commitments

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninths of the amount computed by the declining-balance method with 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 theinterest method.

- 27 -

(Securities）
1) Other securities with market quotations(Note: Amounts are truncated to one million yen)Previous interim period
As ofSeptember 30, 2006
Acquisition cost

Carrying
value onconsolidated B/S

Stock

21,113

Bonds
Others

Total(Note)

Current interim period
As ofSeptember 30, 2007

Difference

Acquisition cost

Carrying
value onconsolidated B/S

59,46638,352

24,272

-

-

-

60

75

21,17459,541

Previous period
As ofMarch 31, 2007

Difference

Acquisition cost

Carrying
value onconsolidated B/S

Difference

68,05543,78323,267

72,66549,398

-

-

-

-

-

-

15

60

79

18

60

81

20

38,367

24,332

68,13543,802

23,32872,74649,418

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

2) Securities that do not have market quotations(Note: Amounts are truncated to one million yen)Previous interim period

Current interim period

Previous period

As of September 30, 2006
Carrying value on
consolidated B/S

As of September 30, 2007
Carrying value on
consolidated B/S

As of March 31, 2007
Carrying value on
consolidated B/S

1,236

1,175

1,175

-

10

-

192

192

192

3,624

2,792

3,189

5,053

4,169

4,557

Other securities
Unlisted stock
Bonds
Stock of subsidiaries and affiliate
Stock of unconsolidated subsidiaries

Stock of affiliated company
Total(Derivative Transactions)
N/A(Stock options)
N/A- 28 -

(Per share information)

Net assets per share
Earnings per share

Previous interim period(From April 1, 2006
To September 30, 2006)

Current interim period(From April 1, 2007
To September 30, 2007)

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

1,795.78 yen
63.24 yen
Diluted earning pershare is not presented
because there is nopotential stock which
could have a dilutive
effect.

1,967.54 yen
52.44 yen
Diluted earning pershare is not presented
because there is nopotential stock which
could have a dilutive
effect.

1,979.21 yen
134.71 yen
Diluted earning pershare is not presented
because there is nopotential stock which
could have a dilutive
effect.

Previous interim period
As ofSeptember 30, 2006

Current interim period
As ofSeptember 30, 2007

Previous period
As ofMarch 31, 2007

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

Total net assets in B/S(million yen)

116,166

126,300

127,020

Net assets related to thecommon stocks(million yen)

114,037

124,882

125,651

2,128

1,417

1,369

63,87863,87863,878

375

407

393

63,50363,471

63,485

Amount to be deducted from total
net assets in B/S (Million yen)

Minority interests
Common stocks issued(Thousands shares)
Treasury stocks of common
stock (Thousands shares)
Number of common
stocks(thousand shares)
utilized for computation of net
assets per share
2. Earnings per share

Previous interim period(From April 1, 2006
To September 30, 2006)

Net (interim) income(Million yen)
Net (interim) income related
to the common stock(Million yen)Amount not attributed to thecommon stock(Million yen)
Average shares of thecommon stock during theperiod (Thousands shares)
Overview of the potential
shares not included in thecomputation of diluted earning
share because of not having adilutive effectCurrent interim period(From April 1, 2007
To September 30, 2007)

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

4,016

3,328

8,555

4,016

3,328

8,555

-

-

-

63,51963,47963,507

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

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

Sort of potential shares:
Stock acquisition right
Number of potential
shares:2,800 units- 29 -

(Production, Orders received and Sales)
1) Production(Note: Amounts are truncated to one million yen)

Business Segment

Current interim period
Previous interim period(From April 1, 2007
(From April 1, 2006
To September 30, 2006) To September 30, 2007)
Amountproduced

Ratio of change
from the previous
period(%)

Amountproduced

Ratio of change
from the previous
period(%)

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

Ratio of change
from the previous
period(%)

Medical Equipment

30,303(6.2)

40,90435.0

73,011

11.5

Pharmaceutical

20,012

21.5

24,22221.0

41,744

16.4

Glass & Materials

1,742

4.0

1,520

(12.8)

3,253

(4.8)

Others

386

76.8

591

53.1

700

(23.3)

Total

52,444

3.5

67,23828.2

118,709

12.4

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) Order received
Since we adopt the production system based on estimated orders, there is nothing applicable hereto regarding
the amount and the balance of orders received.

3) Sales(Note: Amounts are truncated to one million yen)

Business Segment

Current interim period
Previous interim period(From April 1, 2007
(From April 1, 2006
To September 30, 2006) To September 30, 2007)
Amountsold

Ratio of change
from the previous
period(%)

Amountsold

Ratio of change
from the previous
period(%)

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

Ratio of change
from the previous
period(%)

Medical Equipment

45,897

2.6

54,19618.1

97,3007.1

Pharmaceutical

20,331

26.0

24,39620.0

42,152

19.7

Glass & Materials

7,021

21.7

5,365

(23.6)

12,9188.3

Store26,428(23.8)--

30,973(54.0)

Others

601

(4.1)

330

(45.0)

1,017(33.0)

Total

100,280(1.6)

84,288(15.9)

184,362(10.9)

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.

- 30 -

5. Interim Financial statements(1) Balance Sheet(Note: Amounts are truncated to one million yen)

Periods
Accounts

Previous interim period

Current interim period

Previous period

As of

As of

As of

September 30, 2006

September 30, 2007

March 31, 2007

AmountAmountProportion(ASSETS）
Current Assets

Proportion%
106,427

37.4

AmountProportion%
105,376

34.4%
116,129

Cash on hand and in banks

32,187

21,19737,437

Trade notes receivable

13,48013,211

13,722

Accounts receivable

34,08540,41036,090Inventories

20,64422,563

21,592

Deferred tax assets

2,281

1,595

1,914

Other current assets

3,783

6,452

5,410

Allowance for doubtful accounts

(36)

(54)

(38)

37.9

Fixed Assets

178,27262.6

201,060

65.6

190,218

62.1

Tangible fixed assets

36,182

12.7

44,22714.4

37,482

12.2

Buildings

10,207

14,513

10,619Machinery

10,787

11,925

10,871Land

10,885

11,225

11,225

Others

4,301

6,563

4,766

Intangible fixed assets

257

0.1

364

0.1

278

0.1

Investments and other assets

141,83249.8

156,46751.1

152,457

49.8

Investment securities

56,63665,072

69,161

Stocks of related companies

49,81656,41848,433

Investments to related companies

8,537

11,018

9,482

Long-term loan receivables

358

241

294

Long-term loans receivables from subsidiaries

22,92921,306

22,292Other assets

6,924

6,532

6,909

Allowance for doubtful accounts(2,738)(2,568)(2,563)

Allowance for invesment loss

(631)

(1,553)(1,553)

Total Assets

284,700

100.0- 31 -

306,436100.0

306,347

100.0

(Note: Amounts are truncated to one million yen)
Periods
Accounts

Previous interim period

Current interim period

Previous period

As of

As of

As of

September 30, 2006

September 30, 2007

March 31, 2007

AmountAmount(LIABILITIES）
Current liabilities
Trade notes payables
Accounts payables
Short-term borrowings
Current portion of bonds
Accrued income taxes
Allowance for bonuses payables
Allowance for bonuses payables
for directors and corporate auditors
Allowance for loss on clearance of business
Other current assets
Fixed assets
Bonds
Convertible-bond-type bonds
with stock acquisition rights
Long-term borrowings
Deferred tax liabilities
Accrued pension and severance costAccrued severance cost for
directors and corporate auditors
Lease deposits received
Total Liabilities

Proportion%
74,933

26.3

Proportion

Amount%96,82031.6%
86,253

16,26913,56827,9136,420
1,928

18,035
14,34639,095
10,0002,060
874

16,941
13,242
38,213
7,500
850

1,954
6,879

1,954
10,454

229
1,954
7,322

84,38929.7

77,691

25.3

Proportion

86,32531,00021,00031,00014,00025,81010,6881,686

14,00027,27912,4291,315

14,00023,926
14,645
1,543

1,204

479
1,186

1,210

28.1

28.2

159,32356.0

174,51256.9

172,579

56.3

Shareholders’ equity

104,75136.8

108,13035.3

106,937

34.9

CapitalCapital Surplus
Capital reserve
Other capital surplus
Earned Surplus
Revenue reserve
Other earned surplus
Reserve for dividends
Reserve for special depreciation
Voluntary reserve
Retained earnings
Treasury stock

28,66329,972
29,972046,817
1,196

10.1
10.5

28,66329,97529,972
3
50,268
1,196

9.4
9.8

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

9.3
9.8

16
83
39,735
5,786(701)

Valuation and translation differences

20,625

Valuation difference of other securities

20,625

Total Net Assets

125,37644.0

131,92443.1

133,768

43.7

Total Liabilities and Net Assets

284,700

100.0

306,436100.0

306,347

100.0(NET ASSETS)

16.4

(0.2)

16
53
44,935
4,067
(776)

7.2

23,794

16.4

(0.3)

16
66
39,735
8,028
(741)

(0.2)

7.8

26,8308.8

23,794- 32 -

16.0

26,830(2) Statement of Income(Note: Amounts are truncated to one million yen)
Periods
Accounts

Previous interim period(From April 1, 2006
To September 30, 2006)
AmountRatio

Current interim period(From April 1, 2007
To September 30, 2007)
AmountRatio

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

%

%

%

Sales

62,134100.0

67,192100.0

127,407

100.0

Cost of goods sold47,26676.1

50,33474.9

96,43975.7

14,86723.9

16,85825.1

30,96824.3

10,252

16.5

10,358

15.4

20,271

15.9

Operating income

4,615

7.4

6,500

9.7

10,696

8.4

Non-operating income

803

1.3

844

1.2

1,544

1.2

Interest income

271

331

578

Dividend income

284

302

537

Exchange gain

210

-

343

Gross profit
Selling, general and administrative expenses

OthersNon-operating expesnses

38
616

210
1.0

1,137

85
1.7

1,209

Interest expenses

242

361

526

Interest on bonds

354

294

648

-

367

-

19

114

34

Exchange loss
Others0.9

Recurring income

4,802

7.7

6,207

9.2

11,031

8.7

Extraordinary gains

10,495

16.9

67

0.1

14,273

11.2

Gains of sales of fixed assets

5

2

8

Gain on sales of securities in affiliates

10,478-13,588Governmental subsidies

-

4

661

Adjustments for correction of prior years’ results

-

41

-

11

19

14

OthersExtraordinary losses

6,250

10.0

539

0.8

7,998

Loss on sales and disposal of fixed assets

63

53

176

Impairment loss on fixed assets

384

-

384

Allowance for loss on clearance of business

1,954

-

1,954

Loss on investment securities

268

-

268

Loss on devaluation of investment in affiliates

700

-

700

Allowance for investment loss on affiliated companies

631

-

1,553

Advanced depreciation on fixed assets

-

3

650

Allowance for doubtful accounts

2,200

-

2,200

-

471

-

47

10

110

6.3

Allowance for accrued severance indemnity fordirectors and corporate auditors in prior years
OthersNet(interim)income before income taxes

9,047

14.6

5,735

8.5

17,306

13.6

Corporate, inhabitants and enterprise taxes

6,106

9.8

1,990

3.0

9,310

7.3

Adjustment for deferred taxes(2,524)

(4.0)

169

0.2

(2,424)(1.9)

Net(interim)Income

5,465

8.8

3,575

5.3

10,4208.2- 33 -

(3) Statement of Shareholders’ Equity
Previous interim period (From April 1, 2006 to September 30, 2006)(Note: Amounts are truncated to one million yen)

Shareholders’ equity
Earned surplus

Capital surplus

Other earned surplus
CapitalOther
capitalsurplusCapitalreserve

Total
capitalsurplus

Revenue

Reserveforreserve

dividends

Balance at Mar.31, 2006

28,66329,972-

29,972

1,196

16

Total
shareholders’equityTreasurystock

Reservefor
specialdepreciation

Voluntary
reserve

Retainedearnings

Total
earnedsurplus145

37,1354,315

42,808(1,365)(1,365)(1,365)

(89)

(89)

(89)

5,465

5,465

5,465

61

-

-

(2,600)

-

-

(648)

100,794

Increase(decrease)during the period
Dividends of surplus
Bonuses to director
and corporate auditors
Net interim income
Reversal of reserve(61)

for special depreciation
Addition to voluntary

2,600

reserve
Acquisition oftreasury stock
Disposal oftreasury stock
Increase(decrease) of
the items other thanshareholders’equityduring the period
Net increase(decrease)during the period
Balance at Sep.30, 2006

0

0

0

-

-

(61)

2,600

1,470

4,009

(52)

3,957

28,66329,972

029,972

1,196

16

83

39,735

5,786

46,817(701)

104,751

22,186

Total valuationand translationdifferences

22,186

Total net assets

122,981

during the period
Dividends of surplus(1,365)

Bonuses to director(89)

and corporate auditors
Net interim income

5,465

Reversal of reserve-

for special depreciation
Addition to voluntary-

reserve
Acquisition of(56)

treasury stock
Disposal of

4(1,561)(1,561)(1,561)(1,561)(1,561)

2,395

20,625

20,625

125,376

Net increase(decrease)
Balance at Sep.30, 2006

4

0Increase(decrease)during the period

3-

Valuationdifferences of othersecurities

treasury stock
Increase(decrease) of
the items other thanshareholders’equityduring the period

(56)

-

Valuation and translation differences

Balance at Mar.31, 2006(56)

- 34 -

Current interim period (From April 1, 2007 to September 30, 2007)(Note: Amounts are truncated to one million yen)

Shareholders’ equity
Earned surplus

Capital surplus

Other earned surplus

Total
shareholders’equityTreasurystock

Reservefor
specialdepreciation

Voluntary
reserve

Retainedearnings

Total
earnedsurplus66

39,735

8,028

49,042

Dividends of surplus(2,348)(2,348)(2,348)Net interim income

3,575

3,575

3,575

(12)

-

-

(5,200)--CapitalOther
capitalsurplusCapitalreserve

Total
capitalsurplus

Revenue

ReserveforReserve

dividends

Balance at Mar.31, 2007

28,66329,972

1

29,973

1,196

16

(741)

106,937

Increase(decrease)during the period

Reversal of reserve(12)

for special depreciation
Addition to voluntary

5,200

reserve
Acquisition oftreasury stock

(42)

(42)

6

8

Disposal oftreasury stock
Increase(decrease) of
the items other thanshareholders’equityduring the period22

Net increase(decrease)during the period
Balance at Sep.30, 2007

-

-

2

2

-

-

(12)

5,200

(3,961)

1,226

(35)

1,192

28,66329,972

3

29,975

1,196

16

53

44,935

4,067

50,268(776)

108,130

Valuation and translation differences
Valuationdifferences ofother securities

Balance at Mar.31, 2006

26,830Total valuationand translationdifferences

26,830Total net assets

133,768

Increase(decrease)during the period
Dividends of surplus(2,348)Net interim income

3,575

Reversal of reserve-

for special depreciation
Addition to voluntary-

reserve
Acquisition of(42)

treasury stock
Disposal oftreasury stock
Increase(decrease) of
the items other thanshareholders’equityduring the period

8(3,036)(3,036)(3,036)(3,036)(3,036)(1,843)

23,79423,794

131,924

Net increase(decrease)during the period
Balance at Sep.30, 2007

- 35 -

Previous period (From April 1, 2006 to March 31, 2007)(Note: Amounts are truncated to one million yen)
Shareholders’ equity
Earned surplus

Capital surplus

Other earned surplus
CapitalOther
capitalsurplusCapitalreserve

Total
capitalsurplus

Revenue

Reserveforreserve

dividends

Balance at Mar.31, 2006

28,66329,972-

29,972

1,196

16

Total
shareholders’equityTreasurystock

Reservefor
specialdepreciation

Voluntary
reserve

Retainedearnings

Total
earnedsurplus145

37,1354,315

42,808(4,096)(4,096)(4,096)

(89)

(89)

(89)

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

-

-

(648)

100,794

Increase(decrease)during the period
Dividends of surplus
Bonuses to director
and corporate auditors
Net income
Reversal of reserve(78)

for special depreciation
Addition to voluntary

2,600

reserve
Acquisition oftreasury stock

(101)

(101)

9

10

Disposal oftreasury stock
Increase(decrease) of
the items other thanshareholders’equityduring the period11

Net increase(decrease)during the period
Balance at Mar.31, 2007

-

-

1

1

-

-

(78)

2,600

3,712

6,234

(92)

6,143

28,66329,972

1

29,973

1,196

16

66

39,735

8,028

49,042(741)

106,937

Valuation and translation differences

Balance at Mar.31, 2006

Valuationdifferences of othersecurities

Total valuationand translationdifferences

22,18622,186

Total net assets

122,981

Increase(decrease)during the period
Dividends of surplus(4,096)

Bonuses to director(89)

and corporate auditors
Net income

10,420

Reversal of reserve-

for special depreciation
Addition to voluntary-

reserve
Acquisition of(101)

treasury stock
Disposal oftreasury stock
Increase(decrease) of
the items other thanshareholders’equityduring the period

10

4,644

4,644

4,644

4,644

4,644

10,787

26,83026,830133,768

Net increase(decrease)during the period
Balance at Mar.31, 2007

- 36 -

(4) Basis of Preparation for the Financial Statements
1) Valuation standards and methods for assets[1] Securities
Stocks issued by subsidiaries
and affiliated companies····················Valued at cost by the weighted average method
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[2] 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[1] Tangible fixed assets:············ Declining-balance method
Except buildings acquired after April 1, 1998 (excluding attached structures),are depreciated by straight-line method.
[2] Intangible fixed assets ··········· Straight-line method
Except software for internal use is amortized by the straight-line method forthe period during which it is available in the Company (5 years).
3) Standards for recognition of allowances[1] Allowance for doubtful
accounts····························[2] Allowance for investment
loss ··································[3] Allowance for bonuses
payables ··························[4] Allowance for loss on
clearance of business ·····[5] Accrued pension andseverance cost··················In order to cover the probable losses on collection, an allowance for
doubtful accounts is provided for the estimated amount of uncollectible
receivables. For general receivables, the amount of provision is based on
historical write-off rates, and for the doubtful receivables, based on thespecific collect ability.
In order to cover the probable losses on investment to the affiliates, anallowance for loss is provided for the estimated amount considering thebusiness results and assets situation.
In order to cover the payment of bonuses to employees, an allowance isprovided for the estimated amount of bonuses to be paid, prorated for the
fiscal period.
In connection with withdrawal from retail business which we sold theshares of the subsidiaries, the estimated loss at the end of the fiscal period
is posted for disposal of land, building and other properties to be soldaccordingly.
An allowance is provided for employee’s pension and severance payments
based on the estimated amounts of projected benefit obligation and plan
assets at the end of the fiscal year.
Actuarial difference is expensed in the following fiscal years after the yearof such recognition, using the straight-line method for five years.

[6] Accrued severance indemnityfor directors and corporate auditors ·· An allowance is provided for severance indemnities for directors andcorporate auditors based on the amounts to be paid at the end of the current
interim periods based on the internal regulation of the companies.
- 37 -

4) Accounting method for lease transactions
Finance leases, except for those where ownership of the leased assets is deemed to be transferred to thelessee, 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
Consumption taxes are excluded from revenues and expenses accounts.

(5) Change in Significant Matter of Basis of Preparation for Financial Statements(Change in Accounting Method)
1) Change in depreciation method of tangible fixed assets
Revised the corporate income tax law (Law for revision of a part of income tax law and related law, published on
March 30, 2007, and Government ordinance for revision of a part of the enforcement ordinance of the corporate
income tax law, published on March 30, 2007, the enforcement ordinance no.83), we have changed the depreciation
method according to the method of the revised corporate income tax law for tangible fixed assets acquired on or after
April 1, 2007, from the fiscal year under review. As a result, gross profit decreased 48 million yen, operating income,recurring income and net income before income taxes decreased 68 million yen, comparing with the computation by
the previous method.

2) Standard for recognition of accrued severance indemnity for directors and corporate auditors
Severance cost for directors and corporate auditors had been processed as expense when it was paid. However,
we have adopted since this interim period, “Treatment on audit concerning reserves based on the special taxation
measures law and reserves or provisions based on special laws” (Japan Institute Certified Public Accountants,
published on April 13, 2007, Audit, assurance practice committee report No.42) to provide the accrued severance
indemnity for directors and corporate auditors at the end of the current interim fiscal period, according to the internal
regulation of the companies. As a result, selling, general and administrative expenses increased 8 million yen,operating income and recurring income decreased the same amount, and net income before income taxes decreased
479 million yen, comparing with the computation by the previous standard.

(Additional information)
Change in depreciation method for tangible fixed assets
Revised the corporate income tax law(Law for revision of a part of income tax law and related law, published on
March 30, 2007, and Government ordinance for revision of a part of the enforcement ordinance of the corporate
income tax law, published on March 30, 2007, the enforcement ordinance no.83), we have depreciated, included incost of goods sold and selling, general and administrative expenses, the difference between 5% equivalent amount ofacquisition cost of tangible fixed assets and its memorandum value for 5 years from next fiscal year to fiscal year whenreached to 5% of its acquisition cost which was depreciated by application of the corporate income tax before therevision. As a result, gross profit decreased 63 million yen, operating income, recurring income and net income before
adjustment of taxes decreased 78 million yen, comparing with the computation by the previous method.

(6) Notes to the Financial Statements(Notes to the Balance Sheets)(Previous interim period)(Current interim period)(Previous period)

49,143 mil. yen

52,038 mil. yen

50,142 mil. yen

Buildings

5,134 mil. yen

4,927 mil. yen

4,936 mil. yen

Land2,685 mil. yen

2,685 mil. yen

2,685 mil. yen

1. Accumulated depreciation of tangible fixed assets
2. Pledged assets- 38 -

3. Obligations under guarantee contracts
4. Notes receivable discounted

8,290 mil. yen

8,381 mil. yen

7,825 mil. yen

32 mil. yen

46 mil. yen

24 mil. yen

5. Accounting processing for matured bill on last day of the fiscal period
Matured bill at the ended date of the fiscal period and bank holiday was processed on the traded date of bill.
Accordingly, the matured bill at the ended date of each fiscal periods was included in the following accounts.
(Previous interim period) (Current interim period) (Previous period)
Trade notes receivables

630 mil. yen

614 mil. yen

753 mil. yen

Trade notes payables

1,194 mil. yen

1,518 mil. yen

1,471 mil. yen

Other current liabilities (Trade notes payables for plant and equipment)-

mil. yen-mil. yen

23 mil. yen(Notes to the Statement of Income)(Previous interim period) (Current interim period)(Previous period)

Depreciation and amortization
Tangible fixed assets

1,632 mil. yen

2,203 mil. yen

3,639 mil. yen

Intangible fixed assets

42 mil. yen

36 mil. yen

89 mil. yen(Notes to the Statements of Shareholders’ equity)

Previous interim period (From April 1, 2006 to September 30, 2006)
Sort and numbers of Treasury stock
Sort of shares

Number of shares

Increased numbers

Decreased numbers

Number of shares

As of March 31, 2006
Common stock

As of September 30, 2006

349,589

27,721

1,995

375,315(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

Current interim period (From April 1, 2007 to September 30, 2007)
Sort and numbers of Treasury stock
Sort of shares

Number of shares

Increased numbers

Decreased numbers

Number of shares

As of March 31, 2007
Common stock

As of September 30, 2007

393,067

17,585

3,637

407,015(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

Previous period (From April 1, 2006 to March 31, 2007)
Sort and numbers of Treasury stock
Sort of shares

Number of shares

Increased numbers

Decreased numbers

As of March 31, 2006
Common stock

Number of shares
As of March 31, 2007

349,589

48,487

5,009(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

- 39 -

393,067

(Lease transactions）

Finance lease transaction except for those where ownership of the leased assets is deemed to be transferred to
the lessee(Previous interim period)(Current interim period)(Previous period)

Acquisition value equivalent

909 mil. yen

1,007 mil. yen

858 mil. yen

Accumulated depreciation equivalent

611 mil. yen

575 mil. yen

553 mil. yen

Book value equivalent

298 mil. yen

432 mil. yen

305 mil. yen

Due within one year

167 mil. yen

202 mil. yen

168 mil. yen

Due after over one year

244 mil. yen

362 mil. yen

254 mil. yen

Total

411 mil. yen

564 mil. yen

422 mil. yen

Lease payments

104 mil. yen

115 mil. yen

208 mil. yen

Depreciation equivalent

83 mil. yen

120 mil. yen

188mil. yen

Interest expense equivalent

5 mil. yen

7 mil. yen

10 mil. yen

Lease commitments

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninths of the amount computed by the declining-balance method with 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）
There was no stocks issued by subsidiaries and affiliated companies which had market value in the previous
interim fiscal period, current interim fiscal period and previous fiscal period.
(Net Sales by Division and Proportion to the Total)(Note: Amounts are truncated to one million yen)
Periods
Accounts

Previous interim period(From April 1, 2006
To September 30, 2006)
Proportion
AmountCurrent interim period(From April 1, 2007
To September 30, 2007)
Proportion
AmountPrevious period(From April 1, 2006
To March 31, 2007)
Proportion
Amount%%%Medical Equipment

44,77072.1

50,56375.3

92,557

72.6

Pharmaceutical

8,963

14.4

9,764

14.5

19,15415.0

Glass&Materials

7,481

12.0

5,922

8.8

14,084

11.1

919

1.5

942

1.4

1,611

1.3

Total

62,134100.0

67,192100.0

127,407100.0(including Exports)(23,958)

38.6(28,462)42.4(49,422)

38.8

Others- 40 -