IR Materials
FY03/23

May 11, 2023

Nipro Corporation

Table of Contents
Business Overview

2

Q4 FY03/23 Results

3

SG&A Expenses: Major Accounts

4

SG&A Expenses: Additional Information

5

SG&A Expenses: R&D Expenses

6

P&L Excluding Forex Impact

7

Net Sales and Operating Profit by Segment

8

Segment Results – (1) Medical-Related (Domestic)

9

Segment Results – (1) Medical-Related (Overseas)
Segment Results – (2) Pharmaceutical-Related

10
11

Segment Results – (3) Pharma Packaging

12

Net Sales by Segment and Product Category

13

Net Sales by Segment and Region
Product Category

14
15

Net Sales by Product Category

16,17

Exchange Rate Sensitivity

18

Capex and Depreciation

19

FY03/24 Forecast

20Core KPIs in the Medium-Term Management Plan – (1)Core KPIs in the Medium-Term Management Plan – (2)2122Core KPIs in the Medium-Term Management Plan – (3)Core KPIs in the Medium-Term Management Plan – (4)

23
24
1

Business Overview
Manufacturing, Purchasing, Logistics
Timeline of plant shutdowns in FY03/23 and construction plans for new dialyzer lines (China Hefei and India plants) are shown
below. Some of Odate No. 5 Plant’s production lines are currently shut down.

2022
4

5

Shanghai,
China
Impact oflockdown
4/1 – 5/31
Operations
completely
halted6

7

Shanghai, China
Hefei, China
from 6/1
7/15 Third
Operations
dialyzer line
resumed inbegan operations
phases

Sales

Dialysis medical devices
Cardiovascular medical devices
Surgical medical devices
Pharmaceuticals (own brand)
Pharmaceuticals(contract manufacturing)
Pharma packaging

2023
8

9

10 11

12
India
Third dialyzer
line began
operations

1

2

3

India
Fourth dialyzer
line began
operations

Odate No. 5 Plant
3/17 Fire broke out
Dialyzer production line
partially damaged

4

5

Reduced production at Odate was compensated for by two new lines in India
and one line in Hefei, China, etc. to keep overall dialyzer supply going
Sales of dialyzers were brisk in China, North America, and Japan, but sluggish in Europe. Dialysis
equipment sales expanded in Central and South America as well as India.
Sales of balloon catheters and Y-connectors in China and sales of drug-eluting balloons and NSE-PTCA
balloons in Japan were upbeat.
Sales of blood flow meters were firm due to the launch of HeartMate 3 and new products.
Sales of the oral drug Nexium AG, which was launched in December, were robust, while sales of
injections grew significantly due to increased NHI drug prices and higher sales volumes.
Overseas sales increased YoY as JMI Pharma enjoyed steady sales.
Sales in Japan were down YoY due to a decline in orders associated with customers’ inventory
adjustments as well as a decline in one-off orders for injections.
In China, sales of vials and syringes for vaccines remained weak due to a decline in demand, but salesof glass tubes in the U.S., France, and Japan and ampoules, syringes, and vials in Europe remained
strong.

Clinical trials

There were no significant impacts on carrying out clinical trials or submitting applications for approval.

Business Improvement Order to Nipro Pharma (February 24)

Nipro Pharma, our pharmaceutical manufacturing subsidiary, has been ordered by Akita Prefecture to improve its operations due toviolations of the Act on Pharmaceutical and Medical Devices.
The entire Nipro Group takes this order very seriously and sincerely apologizes to patients and their families, medical professionals, andother stakeholders for any inconvenience and concern it may have caused. We will do our utmost to take corrective measures andprevent a recurrence in order to regain the trust of all concerned. The impact of this matter on our consolidated financial results for the
fiscal year ended March 31, 2023, was immaterial.
2

FY03/23 Results
FY03/22

FY03/23

FY03/23 Forecast
as of May(% achievement)

FY03/23 Forecast
as of February(% achievement)+369.45,400.0

5,490.0+10.0%

75.2%

74.0%

+273.1

3,707.0

3,820.0+10.6%

76.7%

74.4%

ChangeFY03/24 Forecast(% achievement)

Q4

Q1

Q2

Q3

5,992.4

1,254.3

1,278.9

1,324.4

1,459.6

1,388.9

4,194.6

884.8

886.8

927.9

1,028.7

973.9
415.0

(¥100 million)

Net sales
Cost of sales
Gross profit(*1)

SG&A expenses
Operating profit
Ordinary profit(*2)

Profit attributable toowners of parent
Profit in accordance withIFRS (estimate)⚫Gross profit⚫Operating profit⚫Ordinary profit⚫Profit

Q4

3,693.5

4,063.0

2,570.3

2,843.5

1,123.2

1,219.4+96.2

1,693.0

1,670.0

1,797.7

369.4

392.0

396.5

430.8

30.4%

30.0%

+8.6%

72.0%

73.0%

30.0%

29.5%

30.7%

29.9%

29.5%

29.9%

925.8

1,087.6+161.81,418.0

1,480.0

1,557.7

328.0

362.5

362.3

362.7

369.5

25.1%

26.8%

+17.5%

76.7%

73.5%

80.5%

26.2%

28.3%

27.4%

24.9%

26.6%

197.3

131.7

△65.5

275.0

190.0

240.0

41.4

29.5

34.1

68.0

45.4

5.3%

3.2%

△33.2%

47.9%

69.3%

4.0%

3.3%

2.3%

2.6%

4.7%

3.3%

205.5

137.7

△67.8

266.0

184.0

206.5

70.3

73.3

42.6

21.6

15.7

5.6%

3.4%

△33.0%

51.8%

74.8%

3.4%

5.6%

5.7%

3.2%

1.5%

1.1%

110.3

69.6

△40.7

156.0

100.0

112.0

24.1

52.7

9.7

7.0

△23.8

3.0%

1.7%

△36.9%

44.6%

69.6%

1.9%

1.9%

4.1%

0.7%

0.5%

-1.7%

△45.7

185.0

129.0

133.0

△34.5%

46.8%

67.1%

2.2%

132.3

86.6

*1: Impact of unrealized gains on gross profit
FY03/22:(¥2,170) million
FY03/23:(¥680) million⚫Net sales

Quarterly Results
FY03/23

FY03/22*2:Foreign exchange gains and losses
FY03/22:¥4,830 million
FY03/23:¥2,120 million

Sales of medical devices, domestic pharmaceuticals, and pharma packaging increased. Sales incontract manufacturing declined.
Overall sales grew YoY due to an increase in overseas sales as a result of the yen’s depreciation in
addition to passing higher costs, resulting from manufacturing and logistics costs, onto customers.
GPM dipped slightly due to insufficient pass-through of soaring raw material and energy costs.
Although overseas transportation costs have been on a downward trend since December,
operating profit declined YoY due to the significant impact of higher SG&A expenses, such as
R&D, promotion, travel & transportation, and rent expenses.
Ordinary profit decreased YoY due to the posting of cancellation deposits in the previous year,a ¥2,700 million YoY decrease in foreign exchange gains, and the posting of non-operating
expenses due to the application of inflation accounting at European subsidiaries in FY03/23.
Profit fell YoY partly because of a tax adjustment of ¥3,800 million due toa reversal of deferred tax assets.

3

SG&A Expenses
FY03/22(¥100 million)

FY03/23
Actual% of Total

ChangeChange(%)

FY03/23
Forecast asof MayFY03/23
Forecast as
of February

03/24
Forecast

Personnel

411.0

416.5

28.6%

+5.5

+1.3%

442.5

440.3

474.2

R&D （*1）

186.5

212.9

14.6%

+26.4

+14.2%

197.5

200.0

190.5

Transportation

126.5

210.1

14.4%

+83.6

+66.1%

215.0

220.5

186.4

Depreciation （*2）

115.1

124.6

8.6%

+9.5

+8.3%

108.0

121.3

115.3

Promotion (*3)

82.3

99.5

6.8%

+17.2

+20.9%

92.0

102.0

102.0

Travel & transportation

33.3

47.5

3.3%

+14.2

+42.6%

34.0

44.8

47.2

Storage

30.6

34.9

2.4%

+4.3

+14.1%

27.0

34.0

35.3

Other

268.2

310.6

21.3%

+42.4

+15.8%

302.0

317.1

406.6

Total

1,253.8

1,457.2

100.0%+203.4+16.2%

1,418.0

1,480.0

1,557.7*1: R&D expenses, experimentation and research expenses, and development amortization*2: Depreciation, goodwill amortization*3: Sales commissions, samples, advertising, and entertainment expenses● Personnel expenses

Personnel expenses rose YoY due to an increase in the headcount, but the YoY increase wasminor due to adjustments in performance-linked bonuses at major subsidiaries in Japan.
Personnel expenses are expected to go up in FY03/24 due to wage increases in response torising prices overseas.
● Transportation costs Transportation costs increased significantly YoY due to the cumulative increase over the year
although overseas transportation costs have been on a gradual downward trend since
December.
Transportation costs are expected to decrease in FY03/24 due to falling prices.
● Promotion expenses Expenses for samples and sales commissions increased due to strong sales at overseas
subsidiaries.
Spending on entertainment has been on the rise as the impact of COVID-19 has eased.
Promotion expenses are projected to increase slightly in FY03/24 as the impact of COVID-19 is
expected to ease further.
● Travel & transportation expenses Travel & transportation expenses increased YoY due to the gradual resumption of
face-to-face sales and business travel as the impact of COVID-19 eased.
In FY03/24, travel & transportation expenses are expected
to remain generally on a par with FY03/23.
4● Accounts other than the above
The main factors for the increase are explained in the next slide.

SG&A Expenses: Additional Information
FY03/22
Commission expenses

Rent expenses
Taxes and dues
Provision of allowancefor doubtful accounts

Meeting expenses
Other
Total

FY03/23

ChangeChange(%)

FY03/23
Forecast

FY03/24
Forecast

44.1
35.5
21.9

52.3
49.0
26.5

+8.2
+13.5
+4.6

18.6%
38.0%
21.0%

63.9
59.1
19.0

62.6
60.6
19.4

5.8

14.4

+8.6

148.3%

5.7

6.7

3.3
156.6
267.2

7.3
159.7
309.2

+4.0
+3.1
+42.2

121.2%
2.0%
15.9%

4.6
164.8
317.1

9.2
248.1
406.6

● Commission expenses

Commissions paid to third parties rose YoY due to increased production and sales of catheter
products.

● Rent expenses

Rent expenses increased YoY since we relocated and expanded logistics warehouses for
medical equipment and pharmaceutical products in Japan during the year.

● Taxes and dues

Non-deductible consumption tax increased due to a lower percentage of taxable sales than inprevious years due to land sales.

● Provision of allowance for doubtful accounts● Meeting expenses

Additional funds were allocated due to credit concerns with a client ofa European sales company. The amount increased YoY.

The number of meetings increased YoY since we began to resume face-to-face meetings as
the impact of COVID-19 eased.

5

SG&A Expenses: R&D Expenses
FY03/22

FY03/23(¥100 million)

FY03/23
Forecast as ofMay

FY03/23
Forecast as ofFebruary

FY03/24
Forecast

Medical

84.2

90.4

87.5

86.0

88.1

Pharmaceutical

98.8

119.1

108.0

108.5

99.5

Pharma Packaging

3.4

3.4

3.5

5.5

2.9

186.5

212.9

199.0

200.0

190.5

Total

● Medical

Up YoY, due to year-long development work on a dialysis information management system as wellas the posting of various clinical trial costs, including clinical trials for drug-eluting stents.

● Pharmaceutical

Up YoY, due to the posting of the cost of purchasing active ingredients for development and various
clinical trial costs, although costs related to the development of oral drugs declined.

● PP

Remained flat YoY, due to the posting of the cost for developing new glass products and othercosts.
Overall R&D expenses are expected to drop slightly in FY03/24 due to a decrease inpharmaceutical-related expenses although medical and pharma packaging-related expenses are
expected to remain at the same level as they were in FY03/23.

6

P&L Excluding Forex Impact
FY03/22

FY03/23

Exchange rate
Impact*【c】

FY03/23
Results Excl.
ImpactChange (%)

【d=b-c】

【d÷a】

【a】

【b】

Net sales

4,947.8

5,451.9+295.05,156.9＋4.2%

Cost of sales

3,455.1

3,817.4+172.53,644.9＋5.5%Gross profit

1,492.6

1,634.4+122.5

1,511.9

＋1.3%

（%）

30.2%

30.0%

1,253.8

1,457.2+73.3

1,383.9＋10.4%

Operating profit

238.8

177.2

+49.2

128.0

△46.4%

（%）

4.8%

3.3%

105.2

73.0

(¥100 million)

SG&A expenses

Non-operating income

29.3%

2.5%
△27.0

100.0

+22.2

131.2

△4.9%

68.2

96.8

275.8

153.4

Extraordinary income

8.4

57.7

57.7

Extraordinary losses

51.8

43.4

43.4

232.4

167.7

+22.2

145.5

△37.4%

Income taxes

81.7

108.4

+14.3

94.1

＋15.1%

Profit attributable to noncontrolling interests

16.1

13.6

134.5

45.7

Non-operating expenses

Ordinary profit

Profit before tax

Profit96.8△52.4%

13.6
+7.9

37.8

△71.9%*Total foreign currency transactions converted to yen using the difference from previous year's rate.
Forex impact on yen-denominated transactions has not been taken into account.

Average exchange rate

Jan-Dec
2022

Jan-Dec
2023

FY-end rate

Dec.
2020

Dec.
2021

Dec.
2022

1 USD
1 EUR
1 CNY

110.37130.3417.12

132.08138.52
19.50

１USD
１EUR
１CNY

103.50126.9515.88

115.02130.5118.06

132.70141.4719.01

7

Net Sales and Operating Profit by Segment
Net sales(¥100 million)

4,199.5

FY03/23

Medical-Related

PharmaceuticalRelated

PharmaPackaging

3,734.8

FY03/22
FY03/23727.3

FY03/22743.8

FY03/23517.5

FY03/22463.6

Operating profit

FY03/23 Forecast as FY03/23 Forecast asof Mayof February(% achievement)(% achievement)

FY03/24 Forecast(% achievement)

ChangeChange (%)+464.7＋12.4%

4,229.6

4,206.0

4,602.0

△16.5

△2.2%

762.6

762.0

797.0

+53.9

＋11.6%

521.9

515.0

589.1

ChangeChange (%)

△6.4

△1.6%

406.3

412.0

433.1

△42.1

△42.8%

26.0

29.0

71.7

△1.5

△5.2%

28.0

28.0

23.2

FY03/23 Forecast as FY03/23 Forecast as FY03/23 Forecast asof Novemberof Februaryof February(% achievement)(% achievement)(% achievement)(¥100 million)
FY03/23385.9

Medical-Related

392.4

FY03/22

PharmaceuticalRelated

PharmaPackaging

FY03/2356.1

FY03/2298.2

FY03/2327.3

FY03/22

28.8⚫Medical-Related

Net sales grew, but operating profit declined ¥640 million due to soaring raw materials
and electricity costs, and higher transportation costs overseas, on top of salescommissions and travel & transportation expenses, which climbed higher than sales
growth.

⚫Pharmaceutical-Related

Operating profit fell by ¥4,210 million due to a decline in sales on top of rising costs of
raw materials and utilities.

⚫Pharma Packaging BusinessDespite sales growth, operating profit decreased by ¥150 million due to rising raw
material costs and higher amortization expenses associated with investments in
production facilities in the U.S. and Germany.

8

Segment Results – (1) Medical-Related (Domestic)●Medical devices

Sales of dialyzers held firm, up ¥260 million YoY.
Sales of dialysis equipment were strong, up ¥410 million YoY.
Sales of dialysis-related consumables rose ¥420 million YoY due to strong sales in line with theacquisition of new customers and increased sales of dialysis equipment.
Sales of needles were up ¥440 million YoY due to an increase in sales of winged needles resulting
from the acquisition of new customers.
-Catheter sales rose ¥3,170 million YoY, supported by growth in sales of mainstay drug-eluting
balloons and newly launched NSE-PTCA balloon catheters due to the return of the number ofsurgeries, despite the impact from COVID.
Sales of surgical products increased ¥480 million YoY due to higher sales of blood flow meters
following the launch of a new product, as well as an increase in sales of HeartMate 3 as a result of
the increased number of new patients registered for transplants and expanded use for destination
therapy with left ventricular assist devices.

●Domestic pharmaceuticals

Sales of existing oral drugs fell despite increased sales volumes that did not offset a sales
decline due to price cuts. On the other hand, total oral drug sales increased ¥4,120
million YoY due to strong sales of Nexium AG, which was launched in December.
Sales rose ¥5,490 million YoY thanks to price increases for injection products likeantibiotic drugs and infusion solutions, which were classified as
unprofitable and were subject to re-evaluation, as well as higher
sales volume.
9

Segment Results – (1) Medical-Related (Overseas)
Overseasbusiness
B2B (other brands)

Nipro brands(¥100 million)

1,982.9

FY03/23

1,667.8

FY03/22

FY03/23261.5

FY03/22233.4
1,721.2

FY03/23

1,434.3

FY03/22

Americas

Europe

Asia

China

620.5

FY03/22
FY03/23370.9

FY03/22362.1

FY03/23
FY03/22

FY03/23
FY03/22

Dialyzer

FY03/23

overseas sales

FY03/22

●B2B

775.8

FY03/23

306.9
246.0

ChangeChange (%)

FY03/23 Forecast asof May(% achievement)+315.1＋18.9%

1,828.0

1989.02,114.3+28.1＋12.0%

229.9

222.5

291.9

+286.9＋20.0%

1,598.01766.5

1,822.4+155.3＋25.0%

694.1

773.1

797.6

+8.8

＋2.4%

359.8

411.4

396.5

+60.9

＋24.8%

289.4

310.0

357.5

+61.9

＋30.1%

254.6

272.0

270.7

+93.9

＋17.2%

594.7

657.3

685.3

267.5
205.6

639.8
545.9

FY03/23 Forecast as
of February(% achievement)

FY03/24 Forecast(% achievement)

Sales of safe blood collection sets were strong in the Americas while sales of insulin needles were weak in Europe
despite strong sales of blood collection needles, resulting in a ¥2,410 million YoY increase in overall B2B sales.
●Nipro brands Overall sales are on the rise due to the yen’s weakening.
Sales volume of dialyzers grew steadily in North America and China. In Europe, sales volumes were down due tothe Russia-Ukraine conflict, but sales increased due to foreign exchange effects. Sales in Asia were generally
steady. Overall sales for overseas operations grew ¥10,560 million YoY.
Dialysis equipment sales were particularly strong in Central and South America, and overall sales in the Americas
increased ¥1,820 million YoY.
Overall sales in Asia grew ¥1,120 million YoY as India’s initiative to improve dialysis treatment buoyed sales.
Sales in Europe were down ¥750 million, although sales quantities are bouncing back in step with the supply chain
recovery.
In other dialysis-related products and regions, progress was made in opening dialysis centers, especially in Central
and South America, and sales of related products among others held firm.
10Segment Results – (2) Pharmaceutical-Related

Pharmaceutical-Related

FY03/23 Forecast as ofMay(% achievement)

FY03/23 Forecast as
of February(% achievement)

FY03/24 Forecast(% achievement)

△2.2%

790.0

762.0

797.0

△11.8

△3.0%

400.6

409.2

402.6

△30.8

△12.1%

289.8

253.0

305.6

+17.2

＋41.2%

46.7

43.2

33.0

+8.9

＋18.7%

52.9

56.6

55.7

ChangeChange (%)△16.5(¥100 million)

FY03/23727.3

FY03/22743.8

Breakdown of contract manufacturing sales
Generic drugs

387.3
399.1

FY03/23
FY03/22

Brand-name drugs
Long-listed drugs

FY03/23

OTC drugs
Active ingredients, etc.

FY03/23

JMI Pharma

224.6
255.4

FY03/2258.9

FY03/2241.7

FY03/23
FY03/2256.4
47.5● Generic drugs

Sales of oral drugs increased ¥550 million YoY, due mainly to the launch of new products
manufactured under contract.
Sales of injections fell ¥1,470 million YoY due to a decline in orders as customers restructured theirproducts and adjusted inventories.
● Brand-name/long-listed drugs
Sales of oral drugs recovered from a slump a year ago caused by damage to the
Kagamiishi Plant and rose ¥1,180 million YoY.
Sales of injections fell ¥3,850 million YoY due to a lack of orders this year for
COVID-19 vaccines, flu medicines for stockpiling, etc., for which we received
one-off orders last year.
● OTC drugs, active ingredients, etc. Up ¥1,720 million YoY due to an increase in validation costs and equipmentrelated lump-sum income.
● JMI Pharma
Up ¥890 million YoY due to increased promotion to physicians and a focus on chronic disease drugs.

11Segment Results – (3) Pharma Packaging
ChangeChange (%)

FY03/23 Forecast as ofMay(% achievement)

FY03/23 Forecast as
of February(% achievement)

FY03/24 Forecast(% achievement)+53.9＋11.6%

512.0

515.0

589.1

+3.0

＋2.6%

111.0

116.5

124.2

+50.9

＋14.6%

401.0

398.5

465.0

+38.3

＋22.5%

195.5

208.2

251.5

+28.7

＋30.3%

105.0

123.0

136.2

△19.7

△27.7%

87.0

51.3

57.5

+3.5

＋28.5%

13.5

16.0

19.7

(¥100 million)

PharmaPackaging

517.5

FY03/23463.6

FY03/22

Sales by region
FY03/23118.1

FY03/22

115.1

Japan

Overseas399.3

FY03/23348.4

FY03/22

Europe208.7

FY03/23170.4

FY03/22

Americas123.3

FY03/2394.6

FY03/22China

FY03/2351.3
71.0

FY03/22

India

FY03/23
FY03/22●Japan●Overseas

15.8
12.3

Sales were up ¥160 million YoY due to increased pass-through of costs for glass tubes.
Overall testing product sales grew ¥240 million YoY as sales of sponge swabs for testing increased due
to COVID-19.
In Europe, sales of glass tubes rose ¥640 million YoY due to a recovery in furnace capacity utilization in
France.
Sales of ampoules were up ¥1,210 million YoY thanks to steady sales.
Sales of syringes increased ¥790 million YoY due to increased cost pass-through.
Vial sales rose ¥580 million yen YoY due to an increase in sales prices in addition to steady shipments.
In the U.S., sales of glass tubes rose ¥1,410 million YoY due to increased production capacity and thedepreciation of the yen.
In China, sales of vials decreased by ¥1,920 million YoY and sales of syringes by ¥160 million YoY due
to declined sales of vaccine-related products.

12

Net Sales by Segment and Product Category
Segment
Product

Medical-Related

PharmaceuticalRelated

FY03/23

3,122.0

0.0

FY03/222,780.9

Other

Total

(¥100 million)

34.0

0.0

3,156.0

0.0

30.6

0.0

2,811.5

727.3

4.2

0.0

1,808.1

Medical devices（※3）

FY03/23

1,076.5（※1）

Pharmaceuticals

Pharmapackaging

PharmaPackaging（※2）

FY03/22

953.1

743.8

4.3

0.0

1,701.4

FY03/23

0.6

0.0

477.0

0.0

477.6

FY03/22

0.2

0.0

427.3

0.0

427.6

FY03/23

0.3

0.0

2.2

7.5

10.1

FY03/22

0.4

0.0

1.1

5.5

7.2

FY03/23

4,199.5

727.3

517.5

7.5

5,451.9

FY03/223,734.8

743.8

463.6

5.5

4,947.8

Other

Total

*1: In-house generic drugs*2: Contract manufacturing of pharmaceuticals*3: Needles, infusion-related products, testing products

13

Net Sales by Segment and Region
Segment
RegionJapan

Overseas total

Americas

EuropeChina

Other Asia

Total

●By region●By segment

Medical-Related

PharmaceuticalRelated

PharmaPackaging

FY03/23

2,107.8

667.7

118.6

7.5

2,901.7

FY03/22

1,989.8

690.6

114.8

5.5

2,800.9

FY03/23

2,091.6

59.5

398.9

0.0

2,550.2

FY03/22

1,744.9

53.1

348.7

0.0

2,146.9

FY03/23

860.1

0.0

120.7

0.0

980.8

FY03/22

691.4

0.2

90.7

0.0

782.4

FY03/23

477.1

1.1

204.6

0.0

682.9

FY03/22

430.4

3.1

170.1

0.0

603.7

FY03/23

334.2

0.2

50.3

0.0

384.7

FY03/22

259.9

0.3

66.7

0.0

327.0

FY03/23

420.1

58.2

23.1

0.0

501.5

FY03/22

363.1

49.3

21.2

0.0

433.7

FY03/23

4,199.5

727.3

517.5

7.5

5,451.9

FY03/223,734.8

743.8

463.6

5.5

4,947.8

Other

Total

(¥100 million)

Sales were strong in all regions in FY03/23, with Japan making up 53.2% of net sales andoverseas 46.8%.
In Medical-Related, sales of dialyzers, dialysis-related products, needles, catheters, surgicalproducts, oral drugs, injections and infusion solutions were firm both in Japan and overseas.
In Pharmaceutical-Related, although JMI Pharma enjoyed steady sales overseas, sales dropped
YoY due to a decline in orders associated with customers’ inventory adjustments as well as adecline in one-off orders for injections in Japan.
In Pharma Packaging, demand for vials and glass tubes for vaccines declined in
China, but sales were robust in the U.S. for glass tubes, and in Europe for glass
tubes, ampoules, syringes, and vials.

14

Product Category
Medical devices
Dialyzers

Dialyzers (artificial kidneys), HDF filters

Dialysis equipment

Dialysis systems, maintenance, dialysis equipment parts

Other dialysis-related products

Blood circuits, AVF needles, etc.

Needles

PSV needles, safetouch needles, etc.

Vascular products

Catheter sets for cardiovascular treatments, thrombus aspiration catheters, etc.

Infusion-related products

Infusion sets, IV cannulas, etc.

Testing products

Neotube (vacuum blood collection tube), blood collection needles, etc.

Diabetes-related products

Insulin needles, blood glucose meters (for overseas markets), lancets

Surgical device-related products

Mechanical circulatory support, cardiopulmonary bypass products, orthopedic products

Other products

Medical instruments, blood-related products, cell culture-related products, gloves, etc.
Pharmaceuticals

Oral drugs

Oral drugs

Injection and infusion products

Syringe kits, vial formulations, dual chamber bags (PLW), powdered dialysate, dialysis fluids, etc.

External preparations and patches

External preparations, patches

Others, in vitro diagnostics, etc.

Reagents, pharmaceuticals, blood glucose meters, etc.
Pharma packaging

Glass tube-related products

Medical-use glass tubes, non-medical use glass tubes, glass raw materials

Glass ampoules

Ampoules (single tip, double tip)

Glass vials

Vials (blowback, screw, sterilized, etc.)

Glass syringes

Syringes (luer lock, luer slip, sterilized, etc.)

Rubber stoppers and plugs

Rubber stoppers, plugs, closures, and caps

Plastic containers

Plastics

Thermos bottles

Glass for thermos bottles

Other products

Glass containers and others, special glass containers, cartridge glass and others, etc.

15

Net Sales by Product Category (1)Business Category(\100 million)
Medical devices

FY03/22

Dialyzers
Dialysis equipment
Other dialysis-related products
Dialysis-related products total
Needles
Vascular products
Infusion-related products
Testing products
Diabetes-related products
Surgical device-related products
Other products(※1)

Category Total

Change Change % FY03/22

863.0 ＋96.5 +12.6%
224.9 ＋12.4 +5.9%
465.8 ＋113.8 +32.3%

1,331.0 1,553.7 ＋222.7 +16.7%＋72.3 +17.5%＋31.7 +9.9%＋14.2 +8.6%＋10.0 +9.2%

413.9
319.9
167.0
109.7

486.3
351.7
181.2
119.8

89.6
60.6
316.9

△0.5 △0.7%
89.0
72.2 ＋11.5 +19.0%
297.9 △18.9 △6.0%
432.8 ＋41.3 +10.5%
482.0 ＋78.5 +19.5%＋0.1 +0.2%
66.5＋3.3 +3.7%
95.1

Others, in vitro diagnostics, etc.
Category Total

953.1 1,076.5 ＋123.3 +12.9%

External preparations and patches

Regenerative medicine products

FY03/23

Change Change % FY03/22

FY03/23

Change Change %＋2.6 +1.2%
545.9 639.8 ＋93.8 +17.2% 220.5 223.1＋4.1 +5.1%
85.1
81.0
＋8.3 +6.3%
131.4 139.7＋4.1 +5.3%
82.1
77.9
274.0 383.7 ＋109.6 +40.0%
951.4 1,163.3 ＋211.8 +22.3% 379.5 390.4 ＋10.9 +2.9%＋4.4 +2.8%
258.1 326.0 ＋67.9 +26.3% 155.8 160.2＋8.8 +3.3%
70.0 ＋22.8 +48.4% 272.7 281.6
47.1△0.8 △0.8%
69.3 ＋15.1 +28.0% 112.8 111.9
54.1＋0.6 +2.0%
34.9
34.3
＋9.3 +12.5%
84.8
75.4
74.8
8.5
195.0

＋0.9 +1.2%
75.8＋6.7 +79.3%
15.3
182.5 △12.4 △6.4%

14.7
52.1
121.9

13.2
56.8
115.4

△1.5 △10.3%＋4.7 +9.1%△6.5 △5.3%

2,808.9 3,152.2 ＋343.2 +12.2% 1,664.8 1,987.3 ＋322.4 +19.4% 1,144.1 1,164.9 ＋20.7

391.5
403.5
66.3
91.7

Pharmaceuticals Oral drugs(own brand)
Injection and infusion products

Regenerative
medicines

766.5
212.4
352.0

FY03/23

Japan

Overseas

Overall

2.6

3.8＋1.2 +47.5%

0.2
76.3
3.1

＋0.1 +48.0%
0.4
100.0 ＋23.6 +31.0%△0.1 △5.6%
2.9

391.2
327.1
66.3
88.5

+1.8%

432.4 ＋41.1 +10.5%
381.9 ＋54.8 +16.8%＋0.1 +0.2%
66.5＋3.5 +4.0%
92.1

79.7 103.4 ＋23.6 +29.6% 873.3 973.1 ＋99.7 +11.4%
-

-

-

-

2.6

3.8

＋1.2 +47.5%*1: From FY03/23, orthopedic products which had previously been classified as “Other products” under “Medical devices” are classified as “Surgical device-related
products.”

16

Net Sales by Product Category (2)Business Category(\100 million)

FY03/23

Change Change % FY03/22

FY03/23

Japan

Change Change % FY03/22

FY03/23

Change Change %310.5 ＋16.0 +5.5%
270.6 △53.7 △16.6%
48.1△7.1 △12.9%

1.0
2.2
0.8

0.4
1.4
0.5

△0.5 △53.4%△0.7 △34.9%△0.3 △37.8%

293.4
322.1
54.4

310.0 ＋16.6 +5.7%
269.1 △52.9 △16.4%
47.6△6.7 △12.5%

26.5

45.8 ＋19.2 +72.2%

1.5

0.6

△0.9 △59.1%

25.0

45.1 ＋20.1 +80.3%

700.6 675.1 △25.5 △3.6%
47.0
55.9
＋8.9 +19.1%

5.6
47.0

3.0
55.9

△2.5 △45.3% 695.0 672.0 △23.0 △3.3%＋8.9 +19.1%-

0.0 △11.6%

0.5

0.4

Thermos bottles

47.5
94.7
50.1
166.8
53.7
17.6
20.1
3.8

56.4 ＋8.9 +18.7%
117.7 ＋22.9 +24.2%
67.2 ＋17.1 +34.2%
168.8＋1.9 +1.2%
61.4＋7.6 +14.2%
17.9＋0.3 +2.0%
18.4△1.7 △8.6%
4.2＋0.3 +10.0%

Other products

20.5

21.7

Injection and infusion products

Pharmaceuticals
External preparations and patches(contract
manufacturing) Others, in vitro diagnostics, etc.
Category Total
Pharmaceuticals Oral drugs(JMI Pharma)
Injection and infusion products
Category Total
Glass tube-related products
Glass ampoules
Glass vials
Glass syringes
Rubber stoppers and plugs
Plastic containers

Category Total
Other

FY03/22

Overseas

294.4
324.3
55.2

Oral drugs

Pharmapackaging

Overall

Sales of production machineryand real estate leasing

Consolidated Total

0.5

0.0 △11.6%

-

-

47.5
73.6
49.9
149.8
53.5
5.0
0.0
-

56.4 ＋8.9 +18.7%
94.9 ＋21.3 +29.0%
67.0 ＋17.1 +34.2%
151.8＋1.9 +1.3%
61.1＋7.5 +14.1%
5.7＋0.6 +13.6%
0.0
0.0 △97.4%
-

21.1
0.1
17.0
＋0.2
12.5
20.1
3.8

22.7
0.1
17.0
0.3
12.2
18.4
4.2

+7.8%
＋1.6
0.0 +22.0%
0.0 +0.2%
0.0 +28.1%△0.3 △2.7%△1.6 △8.3%＋0.3 +10.0%

16.5

18.4

＋1.9 +11.8%

4.0

3.2

△0.7 △18.6%

427.6 477.6 ＋49.9 +11.7% 348.6 399.1 ＋50.5 +14.5%

79.0

78.4

△0.5 △0.7%

6.7

9.3

＋2.6 +39.4%

7.2

0.4

10.1

＋1.2

+5.9%

＋2.9 +40.6%

0.4

0.7

＋0.2 +59.0%--

4,947.8 5,451.9 ＋504.0 +10.2% 2,146.9 2,550.2 ＋403.2 +18.8% 2,800.9 2,901.7 ＋100.8 +3.6%

17

Exchange Rate Sensitivity
Annual impact of a ¥1 change in exchange rate
USD

EUR

CNY

Net sales

8.7

4.6

19.5

Operating profit

0.4

1.9

10.6

(\100 million)

Average exchange rate18Capex and Depreciation
Capex

FY03/22

FY03/23

Medical-Related

171.2

445.8

PharmaceuticalRelated

220.9

233.5

PharmaPackaging

43.4

155.6

Other

30

124.8

Total

465.6

959.9

(¥100 million)

FY03/23
Forecast
as of May

Depreciation
FY03/23
Forecast
as ofFebruary

311.7

430.0

143.0%

103.7%

182.5

187.5

127.9%

124.5%

123.0

179.0

126.5%

86.9%

15.0

121.0

832.0%

103.1%

632.2

917.5

151.8%

104.6%

FY03/24
Forecast

FY03/22

FY03/23

197.1

201.1

224.6

277.0

133.9

133.6

96.3

48.2

54.7

50.9

49.7

49.6

621.3

433.1

462.7

FY03/23
Forecast
as of May

FY03/23
Forecast
as ofFebruary

192.0

216.5

117.0%

103.7%

141.0

133.0

94.8%

100.5%

52.5

53.0

104.2%

103.2%

36.5

50.0

135.9%

99.2%

422.0

452.5

109.6%

102.3%

FY03/24
Forecast

252.6
154.9
60.4
55.7
523.6

*From FY03/23, capital expenditures are disclosed based on the timing of booking and not on the timingof acceptance inspections, as was the case previously.

⚫ CapexIn Medical-Related, although capex increased substantially YoY as expenses related to the construction of the Odate No. 7
Plant for dialyzers continued to be incurred, the total was as budgeted.
Expenses related to the Odate No. 7 Plant will continue to be incurred in FY03/24, but capex for the year is expected to
decline significantly due to the completion of new dialyzer lines in India, Vietnam, and China.
In Pharmaceutical-Related, capex increased YoY and went over budget due to the substantial equipment cost for Nipro
Pharma’s new Ohmi Plant.
Capex is expected to increase in FY03/24 as expenses related to the construction of new QC centers in Saitama and Osaka
will be recorded in addition to expenses related to the Ohmi Plant.
In Pharma Packaging, although capex increased sharply YoY due to expenses for the construction of new glass productmanufacturing facilities in the U.S., France, and Germany, it remained under budget due to some work schedule revisions
and changes in payment dates in the U.S. and Germany.
Capex is expected to decline significantly in FY03/24 due to the completion of facility upgrades in the U.S. and France.
⚫ Depreciation
Depreciation was within the budget as there were no substantial delays in construction in all segments, and all facilities
began operations.
Depreciation is expected to increase in FY03/24 due to a significant rise in capex in FY03/23.

19

FY03/24 Forecast
Medical-Related

Breakdown (¥100 million)

FY03/22
ActualFY03/24
Forecast

Domestic
Medical devices
Pharmaceuticals
Overseas
B2B
Americas
EuropeAsia
China
Factory
Direct sales
Total sales
Operating profit

1,194.8
973.3
282.0
775.8
350.4
306.9
267.5
48.8
4,199.5385.9

1,314.2
1,109.5
291.9
797.6
396.5
357.5
270.7
64.1
4,602.0
433.1

Operating margin

9.2%

9.4%

FY03/24
Forecastchange+119.4+136.2
+9.9
+21.8
+46.1
+50.6
+3.2
+15.3
+402.5+47.2-

FY03/24
Forecastchange %+10.0%+14.0%+3.5%+2.8%+13.2%+16.5%+1.2%+31.4%+9.6%+12.2%-

Pharmaceutical-Related

Breakdown (¥100 million)

FY03/22
ActualGeneric drugs

FY03/24
Forecast

FY03/24
ForecastchangeFY03/24
Forecastchange %

387.3

402.6

+15.3

+4.0%

Brand-name/long-listed drugs 224.6

305.6

+81.0

+36.1%OTC drugs, active ingredients

58.9

33.0

△25.9

△44.0%JMI Pharma
Total sales
Operating profit

56.4
727.3
56.1

55.7
797.0
71.7

7.7%

9.0%

△0.7
+69.7
+15.6
-

△1.2%
+9.6%
+27.8%-

Operating margin

PharmaPackaging

Breakdown (¥100 million)
Japan
EuropeAmericas
China
India
Total sales
Operating profit
Operating margin

FY03/22
ActualFY03/24
Forecast

118.1
208.7
123.3
51.3
15.8
517.5
27.3

124.2
251.5
136.2
57.5
19.7
589.1
23.2

5.3%

3.9%

FY03/24
Forecastchange

+6.1
+42.8
+12.9
+6.2
+3.9
+71.6
△4.1
-

FY03/24
Forecastchange %+5.2%+20.5%+10.5%+12.1%+24.7%+13.8%△15.0%-➢Net sales
Sales of medical devices in Japan are expected to increase ¥11,940 million YoY due tofavorable sales of high-performance HDF filters in addition to catheter products suchas PTCA balloon catheters (non-slip type) and Y-connectors.
Sales of pharmaceuticals are projected to increase ¥13,620 million YoY as sales of
Nexium AG are expected to remain strong in Japan.
Sales in the Americas are expected to increase ¥2,180 million YoY due to growing
sales of dialyzers and dialysates to major U.S. dialysis providers as well as anincrease in sales resulting from the opening of new dialysis centers in Central andSouth America.
In Asia, sales are expected to rise ¥5,060 million YoY due to increased sales of
dialyzers in Indonesia and full-scale operation in Vietnam and the Philippines.
In China, sales are expected to increase ¥320 million YoY due to expansion of thedialysis center business in addition to efforts to boost sales of dialyzers and dialysis
equipment.
In Europe, sales of dialysis-related products are expected to remain strong as thedialysis equipment supply chain recovers, resulting in a projected ¥4,610 million YoY
increase in sales.
➢Operating profit
We expect to see a YoY increase in operating profit and a higher operating profit
margin as a result of efforts to pass the higher cost of raw materials onto customers,in addition to a downward trend in freight rates, especially in overseas markets.
➢Net sales
Sales of GE products are expected to increase ¥930 million YoY due to growing
demand in the overall market.
Sales of brand-name/long-listed drugs are projected to increase ¥2,840 million YoY
due to contract manufacturing of new drugs.
Sales of OTC drugs, active ingredients, etc. will be up ¥3,270 million YoY due to anincrease in validation and equipment-related lump-sum income.
JMI Pharma forecasts a YoY decrease of ¥70 million in sales due to the impact of
currency fluctuations, although sales are expected to increase on a local currency
basis.
➢Operating profit
The operating profit margin is expected to improve as higher manufacturing costs are
passed on to customers.
➢Net sales
In Europe, sales are expected to increase ¥4,280 million YoY due to the increased
production capacity for syringes and glass tubes.
In the U.S., sales are expected to increase ¥1,290 million YoY as the effect of theincreased glass tube production capacity remains throughout the year.
In China, sales are expected to increase by ¥620 million YoY due to higher demand
for ampoules made from high-performance glass.
➢Operating profit
Operating profit is expected to decrease due to higher depreciation, despite aprojected increase in net sales.

20Core KPIs in the Medium-Term Management Plan – (1)Guidelines for FY03/25
GrowthSales CAGR

7.0% or higher

Profitability

Operating margin

9.0% or higher

8.6%

10.2%

9.9%

➢Sales growth rate
The average annual sales growth rate remained close to the guideline, at 6.64%. This is due to the weak yen that drove
overseas sales up in FY03/23, on top of the easing of the slowdown in growth caused by COVID-19. Growth in FY03/23 was
10.2% YoY.
The sales growth rate for FY03/24 is expected to be 9.9%, with an average growth rate exceeding the guideline, at 7.18%.
➢Operating profit margin
The operating profit margin has been on a downward trend since FY03/21 due to soaring raw material and energy costs, inaddition to rising freight rates.
In FY03/23, operating profit improved in the second half of the year due to a decline in freight rates, but it deteriorated YoY
for the full year.
The operating profit margin is expected to bounce back to 4.0% in FY03/24 due to the pass-throughof higher costs and an expected continuing decline in freight rates.
21

Core KPIs in the Medium-Term Management Plan – (2)Guidelines for FY03/25
Investment
efficiency➢

Achieve positive free cash flow

Free CFFree cash flow returned to the positive side in FY03/21 but turned negative again in F03/22 due to an increase in newinvestment expenditures.
In FY03/23, operating cash flow fell significantly YoY due to a decrease in pre-tax profit as well as an increase ininventories due to the purchase of additional active ingredients in anticipation of procurement difficulties and the build-up
of initial inventory for the introduction of Nexium AG. On the other hand, free cash flow was minus ¥61,600 million,
significantly worse than the previous year, as investment expenditures remained high despite a decrease from theprevious year.
In FY03/24, free cash flow should return to the positive side again since profits are expected to increase even thoughongoing inflation is projected to bring costs up by about ¥30,000 million. On top of that, we will
actively implement measures, such as reducing working capital through loan securitization and thesale of idle assets and securities.

22

Core KPIs in the Medium-Term Management Plan – (3)Guidelines for FY03/25
Financial healthNet debt-to-EBITDA
ratio in the 4x range➢ Net interest-bearing debt
Net interest-bearing debt is on the rise as a result of aggressive capital investment.
In FY03/23, interest-bearing debt increased YoY due to growing capital expenditures for building the new Odate No. 7 Plant
for dialyzers and the new Nipro Pharma Ohmi Plant.
We should be able to reduce net interest-bearing debt in FY03/24 by improving free cash flow through the sale of idle assets
and the securitization of loans.
➢ Net Debt/EBITDA ratio
Operating profit has not kept pace with sales growth due to capital investments, and the net debt-to-EBITDA ratio is on therise.
The EBITDA ratio deteriorated from the previous year to reach 7.7× in FY03/23 due to an increase in net interest-bearing
debt as well as a decline in operating profit caused by rising raw material and energy costs.
In FY03/24, the EBITDA ratio is expected to improve to 6.2× due to a reduction of interest-bearing debt
and an increase in operating profit.

23

Core KPIs in the Medium-Term Management Plan – (4)Guidelines for FY03/25
Capitalefficiency

➢

ROE

14.0%

ROE

In FY03/23, profit fell sharply YoY due to lower operating profit as well as growing non-operating losses as a result of theapplication of inflation accounting in Europe, tax effects, etc.
As a result, EPS fell significantly YoY to hit ¥28.04. ROE also deteriorated significantly, reaching 2.3%, due partly to anincrease in equity capital as a result of currency translation adjustments.
In FY03/24, EPS is expected to improve to ¥65.3 and ROE to 4.9% due to a significant recovery in profit.

24

Forecasts and other forward-looking statements in this document are based on
information currently available to the Company and certain assumptions that
the Company believes to be reasonable.
Actual results may differ materially from those described in this document due
to various factors that may arise in the future.

25