Summary Report of Consolidated Financial Results
For the Fiscal Year ended March 31, 2011
Ma y 13, 2011
TSE/OSE–1st section

Company name: NIPRO CORPORATION
Code No.8086
URL: http://www.nipro.co.jp/

Representative: Minoru Sano, President and Representative Director
Contact person: Akihiko Yamabe, Director and General Manager of Accounting Division TEL: (06) 6372 -2331
Date of the ordinary general shareholders‟ meeting: June 28, 2011
Payment date of cash dividends: June 29, 2011
Filling date of annual reporting: June 28, 2011
Preparation of supplemental material on financial results : Yes
Presentation on annual results: Yes (for institutional investors and analysts)(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Year ended March 31, 2011 (From April 1, 2010 to March 31, 2011)(1) Consolidated Results of Operations(Note: % of change from previous fiscal year)

Net Sales

Operating Inc ome

Millions of yen

195,942
177,829

Year ended March 31, 2011
Year ended March 31, 2010
Note: Comprehensive income%

Millions of yen

10.2
1.1

17,22518,094

Ordinary Income%

Millions of yen

(4.8)
22.5

13,371
14,908Net Income%

Millions of yen(10.3)
50.7

2,455
7,252

%

(66.1)
60.1

Year ended March 31, 2011: (4,442) million yen ( -%) Year ended March 31, 2010: 20,986 million yen ( -%)Earnings
per Share
Year ended March 31, 2011
Year ended March 31, 2010

DilutedEarnings per
share

Ratio of Net Income
to Shareholders‟EquityRatio of Ordinary
income to Total
AssetsRatio of Operating
Income to Net
Sales

Yen

Yen

%

%

%

38.72
114.3534.88
114.14

2.2
6.9

3.1
4.2

8.8
10.2

Note: Equity in profit (loss) of affiliate

Year ended March 31, 2011: (200) million yen

Year ended March 31, 2010: (1,329) million yen(2) Consolidated Financial Position

Total Assets
Year ended March 31, 2011
Year ended March 31, 2010
Note: Equity

Net Assets

Millions of yen

Millions of yen

476,510383,396

109,037
116,070

Year ended March 31, 2011: 106,509 million yen

Net Assets per
Share

Equity Ratio
%

Yen

22.4
29.8

1,679.37
1,802.33

Year ended March 31, 2010: 114,309 million yen(3) Consolidated Cash Flows

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

21,79926,240(84,658)(44,994)

86,26530,31578,921
56,188Year ended March 31, 2011
Year ended March 31, 2010

Cash and cash
equivalents

2. Dividends
Annual dividends per shareFirstquarter
Yen

Secondquarter
Yen

ThirdquarterYen

Y ear-end
Div idends

Annualdiv idends

Yen

Yen

-

23.50
18.50

-

29.50
31.50

53.00
50.00

-

24.00

-

29.00

53.00

Y ear ended March 31, 2010
Y ear ended March 31, 2011
Y ear ending March 31, 2012
(Forecast)

Annual totalof dividends(Consolidated)%

Millions of y en

3,361
3,171

Ratio ofdiv idends to Net
Assets(Consolidated)

Pay-out
ratio

%

46.4
129.1

3.2
2.9

57.5

3. Forecast of Consolidated Financial Results for the Year ending March 31, 20 12 (From April 1, 2011 to March 31, 2012)
Operating
Ordinary
Earnings
Net Sales
Net Income
per Share
IncomeIncomeMillionsof yenSix months ending Sept. 30, 2011%

Millionsof yen%Millionsof yen%Millionsof yen%Yen

100,000
5.7
6,600 (26.9)
4,300 (21.4)
1,150 (53.4)
18.13
213,000
8.7
16,450(4.5)
13,4000.2
5,850 138.2
92.24
Note: The % displays in the line of six months ending Sept. 30 , 2011 show increase/decrease ratio against the six months
ended Sept.30, 2010. The % displays in the line of Year ending March 31, 2012 show increase/decrease ratio against theyear ended March 31, 2011
Y ear ending March 31, 2012

4. Others(1) Change in significant subsidiaries during the current period(Changes in specified subsidiaries that caused a change in the scope of consolidation): No(2) Changes in accounting principles, procedures and presentation[1] Changes by a newly issued accounting pronouncement: Yes[2] Changes other than [1]: No(3) Issued shares (Common stock)[1] Number of issued shares at end of the period (Including treasury stock):
Year ended March 31, 2011: 63,878,505 sharesYear ended March 31, 2010: 63,878,505 shares
2) Number of treasury stock at end of the period:
Year ended March 31, 2011: 456,420 sharesYear ended March 31, 2010: 455,328 shares
3) Average number of shares during the period:
Year ended March 31, 2011: 63,422,639 sharesYear ended March 31, 2010: 63,425,508 shares(Reference) Overview of the unconsolidated financial res ults
1. Unconsolidated Results for the year ended March 31, 2011 (From April 1, 2010 to March 31, 2011)(1) Results of Operations(Note: % of change from previous fiscal year)

Net Sales

Operating Inc ome

Millions of y en

Year ended March 31, 2011
Year ended March 31, 2010

143,720
137,844

%

4.3
1.9

Earnings
per Share
Year ended March 31, 2011
Year ended March 31, 2010

Millions of y en

13,302
12,935

Ordinary Income%

Millions of y en

2.8
27.3

10,437
11,481Net Income
%

(9.1)
38.9

Millions of y en

6,559
6,930

%

(5.4)
-

Diluted Earnings
per share

Yen

Yen

103.42109.2693.15
109.07(2) Financial Position

Total Assets
Year ended March 31, 2011
Year ended March 31, 2010
Note:

Net Assets

Millions of yen

Millions of yen

402,060
332,758

123,979
123,902

Equity: Year ended March 31, 2011: 123,979 million yen

Equity Ratio

Year ended March 31, 2010:

Net Assets per
Share

%

30.8
37.2

Yen

1,954.83
1,953.59

123,902 million yen*Information regarding the auditing procedure
This report is exempt from auditing procedure based on the Financial Instruments and Exchange Act. It is under the auditing
procedure process at the time this report is disclosed.

*Disclaimer regarding projection information including appropriate use of forecasted financial results, and other special notes
The projection figures shown above are based on information that was available at the time of preparation and may containcertain uncertainties. Actual performance and other factors may differ from these projections due to changes in circumstancesand other developments. M ore information concerning these forecasts can be found in section 1. Business results on page 2 in
the attachments.

Table of contents
1.

Business Result2(1) Analysis Concerning Business Results

2(2) Analysis Concerning Financial Position

4(3) Basic Policies on Distribution of Profit and Dividends
for years ended March 31, 2011 and ending March 31,2012

52.

Corporate Group

6

3.

Management Policies

84.

(1) Basic Policies of Management

8(2) Target Management Indicat ors

8(3) Medium-to Long-term Management Strategies8(4) Issues and Challenges that the Group Faces

8

Cons olidated Financial Statements

10(1) Cons olidated Balance Sheets

10(2) Cons olidated Statements of Income andCons olidated Statements of Comprehensive Income

12(3) Cons olidated Statements of Shareholder‟s Equity

14(4) Cons olidated Statements of Cash Flows

16(5) Notes related to going concern

18(6) Basis of Preparation for the Consolidated Financial Statements

18(7) Change in Significant matter of Basis of Preparation
for Consolidated Financial Statements

5.

6.

20

(8) Additional Information

20(9) Notes to the Consolidated Financial Statements

21(Not es to the Consolidat ed Balance Sheets)

21(Not es to the Consolidat ed Statements of Income)21(Not es to the Consolidat ed Statements of Comprehensive Income)21(Not es to the Consolidat ed Statements of Shareholder‟s Equity)

22(Segment Information)

23(Business Combination)

27(Per Share Information)

29(Material Subsequent E vent)29

Non-cons olidated Financial Statements

30(1) Non-cons olidated Balance Sheets

30(2) Non-cons olidated Statements of Income

33(3) Non-cons olidated Statements of Shareholder‟s Equity

35

Other

38

Changes in Directors

38

-1-

1. Business Results(1)

Analysis Concerning Business Results[1] Overview of business results for the current period
In the current period under review (the year ended March 31, 2011), the world ec onomy had changed indepression brought by growth recession in Western countries and political unrest in Middle Easterncountries, though developing countries showed steady economic growth.
On the other hand, Japanese economy had recovered gradually in the first half-y ear supported by export
to Asia and emergency economic measures. In t he last half- year, however, the strong yen and increaseof res ourc e prices had depressed the economy, and now not only Tohoku region but whole domestic
economy is facing the severe situation because of the Great East Japan Eart hquake which happened on
March 11, 2011.
In our group, some district offices suffered from the disaster just after it happened, and seven local
plants (Odate plant of Nipro Corporation, Odat e plant of Nipro Phama Corporation, Tatebayashi plant of
Nipro Medical Industries, Kagamiishi plant of Tohoku Nipro Pharmaceutical Corporation, Kasukabe plantand Habu plant of Nipro Patch Co., Ltd., and Kasukabe plant of Nipro Genepha) got damaged to cease
production, but now they almost recovers their proper functions except Kagamiishi plant
Under this situation, we aimed to improve production and sales and increase the efficiency, and havepromoted loc al production for local consumption in order to improve business performance actively.
As a result, consolidated sales increased 10.2% from the previous period to 195,942 million yen.
As for income, consolidated operating income dec rease d 4.8% from the previous period to 17,225
million yen because of increase in selling, general and administrative expens es, and consolidated
ordinary income decreased 10.3% from the previous period to 13, 371 million yen because of increas e innon-operating expenses for the accrual of foreign exchange loss. Also consolidated net income
decreased 66.1% from the previous perio d to 2,455 million yen because of increase in extraordinary loss
led by loss due to disaster.
The overviews of the results by segment in the current period are as follows.
a. Medical businessConc erning the domestic sale, the market and business conditions became severe as a result of the
reduction of official redemption price of drug and special treatment materials. Under such circumstance,
we have advanced to increase share and improve sales efficiency. Sales grew greatly in vascular-related
products (such as blood-clot trapping catheters and coronary artery stent and angiographic kit), and we
could see consistent growth of sales in each field of value-added products for avoiding medical accidents
and dec reasing infection risk, enteral-alimentation-related products, environment-friendly products,
dialysis related product (such as dialyzer, bl ood tube and dialysis solution) and testing-related products
like glucose analysis device.
On the International side of this business, we got great impact from the tendency of the strong yen
against US dollar and Euro in exchange rate. However, we have continued to encourage active salepromotion in Chinese, Asian and Latin American market, and also in North Americ a and Europe, we
advanced the community-based sales promotion so as to increas e sales amount.
Sales grew considerably in diabetic-related products with sales expansion into world market, and dialysis
related product (such as dialyzer, dialysis machine, blood tube and indwelling needle) also showed great
sales growth thanks to the community-based sales promotion in the dialysis market of developing
countries. Moreover, we began to construct four plants in India, Indonesia, Bangladesh and China (Hefei)
in order to build up a global production system.
As a result, net sale of this business increased 12.1% from the previous period to 132,816 million yen.
b. Pharmaceutical businessThis business consist of t wo main divisions; one is the generic drugs division to provide low cost andhigh quality medical drugs, and the other is contract manufacturing division to offer high value-added-2-

products for costumer needs.
On the sales of generic drug, under government policy for the dissemination of generic products „genericdrug share in quantity shall be expanded more than 30% until year 2012.‟, the bonus points system forgeneric drug dispensing has been implemented. Thus, while the market is in underlying expansion, we
have proactively advanced sales promotion to dispensing pharmacy group and increased the sales of oral
drug and drug for external use. In addition, the sales of injectable drug, our main product, have grownsteadily as a result of our detailed information service mainly to the hospitals subjected to the DPC system(Diagnostic Procedure Combination; comprehension payment system of medical cost for acutehospitalization). Though we could not avoid the sales decrease by drug price revision (scheduled biyearly),
we registered significant sales growth at last partially because of the good sales of the supplementary
products listed in last November.
On the sales of contract manufacturing business, we have focused on getting contracts in oral drug sales,in addition to injectable drug sales, since one of the biggest oral drug plants in Japan was completed two
years ago. In the current period, the sales resulted in exceeding prior year‟s results since new productstarted sell-in and the amount of the shipment increased mainly in the products launched in the previous
period.

As a result, net sales of this business increased 10.1% from the previous period to 3,804 million yen.
c. Glass & Materials businessIn the field of glass material, the domestic demands in material glass tube for ampule in glass tube forpharmaceutical purpose decreased. The sales of material glass tube for tube bottles performed steadybecause the decrease of the domestic demands was covered by the increase of the export to foreigncountries. Furthermore, we established new business of glass for pharmaceutical purpose in China andIndia, and started sales operation in overseas. The export of glass for thermos bottles had showed thetrend of recovery and the sales increased a little from the previous period. As for the sales of glass forlighting purpose, the sales of material glass tube for electric lamp inc reased thanks to the good conditionin domestic production of automobile, on the other hand the sales of glass for LCD backlight which is used
for home electrics decreased under the influence of penetration of LED products.
In the field of other pharmaceutical container, the sales of rubber stopper for pharmaceutical use
increased steadily based on our processing technologies for plastics, metal and rubber. However, thesales of container for combination products, bags for antimicrobial agent and parts of pre-filled syringe
decreased slightly.
As for the medical preparation and administration related device, the sales had showed good increase,
and we are advancing commercialization of products by both of self -development and joint developmentwith pharmaceutical companies so as to meet the diverse need. Furthermore, we continue to promote
contract manufacturing and development cooperating with domestic and foreign pharmaceuticalcompanies in general life cycle management of pharmaceuticals, which includes the development of
combination products, systematization for self-injection and modification of dosage form in the visual field.
As a result, net sales of this business increased 1.5% from the previous period to 24,703 mil lion yen.
d. Other business
The sales from real estate rental income were 417 million yen.
.
[2] Prospects of business results for the fiscal year ending March 31, 2012 including segment information
Although American economy is forecast to recover gradually, it is expected that the resource price will
become higher because of the economic activities in developing countries and resourceful countries. As
for Japanese economy, we anticipate the long slump whic h will be brought by decrease of demands
based on aging society with fewer children and population decline or aggravation of the accident in
nuclear reactors caused by the Great East Japan Eart hquake, and the business condition will become
more sever.
Under such situation, we will aim to improve expansion and efficiency of production and sales
continuously.
-3-

We project the consolidated net sales of 213,000 million yen (8.7% increase from the previous period),
operating income of 16,450 million yen (4.5% decrease from the previous period), ordinary income of
13,400 million yen (0.2% increase from the previous period), and net income of 5,850 million yen(138.2 % increas e from the previous period), for the year ending March 31, 2012.

(2)

Analysis Concerning Financial Position[1] The conditions of assets, liabilities, net assets and cash flows
Total assets increased 93,113 million yen from the end of the previous period to 476,510 million yen.
Current assets increased 37, 092 million yen and Noncurrent assets increased 56,020 million yen. Main
reason for the increase in c urrent assets was cash and deposits, 21,848 million yen, notes and accounts
receivable-trade, 4,933 million yen and merchandises and finished goods, 4,194 million yen, and main
reason for the increase in noncurrent assets was machinery, equipment and vehicles, net, 6,949 million
yen, goodwill, 7,272 million yen and investment securities, 32,689 million yen.
Total liabilities increased 100,146 million yen to 367,472 million yen. Current liabilities increased 38,197
million yen and noncurrent liabilities increased 61,949 million yen. Current liabilities increased mainly due
to notes and accounts payable-t rade, 4,378 million yen and short-term loans payable, 32,216 million yen
and main reason for the increase in noncurrent liabilities was bonds pay able, 15,000 million yen andlong-term loans pay able, 47,709 million yen.
Net assets decreased 7,033 million yen to 109,037 million yen. Shareholders‟ equity decreased 590
million yen, and valuation and translation adjustments decreased 7,209 million yen.
[2] The condition of cash flow
The ending balanc e of cash and cash equivalents in the period under review inc reased 22,733 million
yen to 78,921 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities was 21,799 million yen. The main accounts of cash inflow were
net income before adjustment of taxes, 7,431million yen, depreciation and amortization, 21,244 million
yen. The main accounts of cash out flow were increas e of trade notes and accounts receivable 4,926
million yen, increase in inventories, 5,472 million yen and payment of corporate income tax, 8,217million
yen.
(Cas h flows from investing activities)
Net cash used in investing activities was 84, 658 million yen. The main account of cash outflow waspurchase of investment securities, 62,771 million yen, payments for investment, 5,439 million yen andpurchase of noncurrent assets, 20,138 million yen.
(Cas h flows from financing activities)
Net cash provided by investing activities was 86, 265 million yen. The main accounts of cash inflow were
net increase in short-term loans payable, 23,062 million yen, proceeds from long-term loans payable,
80,108 million yen, and proceeds from issuanc e of bonds, 19,890 million yen. The main accounts of cash
outflow were repayment of long-term loans payable, 23, 234 million yen, and redemption of bonds, 10,160
million yen.

[3] Trend of the cash flow indicators

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

The 55th period
Year ended
March 31, 2008

The 56th period
Year ended
March 31, 2009

The 57th period
Year ended
March 31, 2010

The 58th period
Year ended
March 31, 2011

33.8

28.7

29.8

22.4

31.6

29.4

29.9

21.9

15.6
5.1

8.2
6.8

7.1
11.4

12.6
9.1

Note: Shareholders‟ equity ratio = Shareholders‟ equity / Total Assets-4-

Ratio of market value of shareholders‟ equity = Aggregat e market value of the outstanding shares/ Total Assets
Debt redemption = Interest-bearing liabilities / Cash flow from operating activities
Interest coverage ratio = Cash flow from operating activities / Interest payments- Each indicator is calculated from consolidated financial data.
- Aggregat e market value of the outstanding shares is calculated as the share price a t 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 activitie s on the
consolidated statement of cash flows. Interest-bearing liabilities represent all liabilities on the
consolidated balance sheets for which interest is payable. The amount of int erest payments is takenfrom the payments of int erests on the cons olidated statement of cash flows.
(3)

Basic Policies on Distribution of Profits and Dividends for years ended March 31, 2011 and ending
March 31, 2012.

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 shareholders. Orienting a ration al system for distributionof profits linked to operation results, not only bonuses of directors and statutory auditors but also employ ees‟bonuses are determined based on the business performance of the Company.
Retained earnings are t o be invested in the sales and production facilities as well as in research anddevelopment, in view of enlarging the firm management basis and long -term business developments, so as
to ensure stable profits and continuous growth.
Annual dividends are calculated to be 50. 00 yen per share. As we already paid interim dividends of 18.50
yen per share, year-end dividends are to be 31.50 yen per share to be proposed to the Company‟s 58th
ordinary general meeting of shareholders.
Dividends for year ending March 31, 2012 are expected to be made according to the above -mentioned
policy.

-5-

2. Corporate GroupOur group consists of the Reporting Company (“the Company ”), its 39 subsidiaries and 2 affiliates, and isprimarily engaged in manufacture and sale of medical equipment, pharmaceuti cal products and material
products such as glass for pharmaceutical purpose and glass for thermos bottles.
Positioning of each company in connection with the businesses of our group and the relation to the businesssegments are as follows:<Medical business>
Domestic:

The Company and Nipro Medic al Industries, Co., Ltd. manufacture medical equipment, andthe Company sells medical equipment manufactured by its foreign subsidiaries.
Cell Science & Tec hnology Institute, Inc., an affiliate, develops, manufac tures and sells
cell-culture-related products.

Overseas:

Nipro (Thailand) Corporation Ltd. (Thailand), Nipro (Shanghai) Co., Ltd. (China) and Nipro
Medical LTDA. (Brazil), and other manufacturing subsidiary purchase some of raw materials andmachinery for their production from the Company, manufacture medical equipment, and sellthrough the Company 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) and ot her s ales subsidiaries sell medical equipment etc. in the areas of theirlocations.
Nipro Diagnostics, Inc. (U.S.A) develops, manufactures and sells diabetes-relat ed products.

<Pharmac eutical business>
The Company, Nipro Pharma Corporation, Nipro Genepha Corporation, Zensei
Pharmaceutical Industries Co., Ltd and Nipro Patch Co., Ltd. manufacture and sell
pharmaceutical products. In addition, Tohoku Nipro Pharmaceutical Corporation manufactures
pharmaceutical products.
Bipha Corporation, an affiliate accounted for by the equity method, is engaged in researchand development, manufacture and sale of pharmaceutical products such as blood products.

<Glass and Materials business>
Domestic:
Overseas:

The Company sells glass tubes as well as manufactures a nd sells glass products.
Shanghai Nissho Vacuum Flask Refill Co., Ltd. (China) sells internal glass sections of vacuum
flask and other glass products. Chengdu Pingyuan Nipro P harmaceutical Packaging Co., Ltd.
(China) manufactures and sells glass tube, tube bottles and ampule.

<Other business>
The Company manufactures (purchases, in some cases) and sells production machinery for
medical equipment and is engaged in leasing of real estate properties.
Nissho Insurance Services Co., Ltd. operates non-life insurance agency business mainly forthe group companies.
Sanri K osan Co., Ltd., the other related company, is engaged in leasing of real estate
properties.
The above explanations are illustrated as follows:-6-

(Domestic)(Overseas)
Medical business<Manufacture and Sale>◎Nipro (Thailand) Corporation Ltd.
◎Nipro (S hanghai) Co., Ltd.
◎Nipro Medical LTDA.
and 4 other subsidiaries

Medical business<Manufacture>◎ Nipro Medical Industries, Co., Ltd.
<Development,
and Sale>

Manufacture■ Cell Science & Technology
Institute, Inc.

<Sale>◎Nipro Europe N.V.
◎Nipro Medical Corporation◎Nipro Asia Pte. Ltd.
and 12 other subsidiaries

Pharmaceutical business<Development, Manufacture andSale>◎ Nipro Diagnostics, Inc.
and 4 other subsidiaries<Manufacture and Sale>◎Nipro Pharma Corporation<Manufacture and Sale>

Glass & Materials business◎Nipro Genepha Corporation◎Nipro Patch Co.,Ltd.
<Manufacture>◎Tohoku Nipro
Pharmaceutical Corporation<Development,
and Sale>

Manufacture<Sale>

Nipro Corporation◎Zensei Pharmaceutical Industry Co., Ltd.

◎Shanghai Nissho Vacuum Flask
Refill Co., Ltd.

<Manufacture and Sale>◎ Chengdu Pingyuan Nipro
Pharmaceutical Packaging Co, Ltd.

and 3 other subsidiaries□Bipha Corporation

Other businessSupply of products andmerchandises<Non-life insurance agency>

Supply of raw materials○Nissho Insurance Services Co.,
Ltd.

Other transactions

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

-7-◎

Cons olidated subsidiary○

Unconsolidat ed subsidiary□■

Affiliate account ed for by theequity method
Affiliated company△

Other related company

3. Management Policies(1) Basic Policies of Management
Since our foundation of year 1954 with concept of “technology innovation”, we have grown by
pursuing the technologies to produc e unique products whic h can al ways solve QOL (Quality of Life)of patients and subjects in Medical treatment sites, based on the philosophy in contributing to thesociety through corporat e activities.
As a management structure considering compatibility between “stability” and “growt h” that is mostimportant for a company, we implement the “performance -linked remuneration system” that is therule of profit sharing among shareholders, employees and management, and carry out active
business operations, holding the employ ees responsible for boosting the performance of individual
businesses.

(2) Target Management Indicat ors
Our performance targets were to achieve 1,000,000 million yen of consolidated net sales by thefiscal year 2030. And as a first step, we aim to achieve 500,000 million yen of consolidated net sales
and 40,000 million yen of ordinary income by the fiscal year 2020. To realize these goals, we aregoing to move towards steady development in each field; medical, pharmaceutical, and material
businesses.
(3) Medium - to Long-term Management Strategies
The Group adopts a basic policy and corporat e strategies which aim to increase share in the global
market and expand sales by means of strengthening cost-competitiveness and increasing the
production capacity in the fields expected to grow in quantity to meet increased demands.
In Medical business, we will try to increase market share by expanding the range of merchandiseand promoting to find a new mark et of dialysis-related products centered on our main product,
dialyzer, diabetes related products and vascular-related product. Especially about dialysis-related
products, we will establish production and sales systems in each place, mainly in China and India so
as to aim a top share in the global market.
In the contract manufacturing division of the Pharmaceutical business, we are going to enhance ourbusiness as one of the top group of pharmaceutical contract manufacturing companies, by improving
production and quality control systems in response to the overseas demands and constructing
production services successively in the fields expected to expand in quantity for the future likebiomedicine and anticancer drug. As for the generic drug division, while we will continue to focus on
the development of new items and growth of each market such as DP C hospitals and dispensing
pharmacy group, we will try to strengthen manufacturing equipments and distribution system formeeting the need of stable supply.
In the Mat erial business, we will work on development and expansion of pharmaceutical container
and other glass products taking advantage of our processing technology for glass and othermaterials. In addition, we will try local manufacturing and sales including a joint venture withoverseas companies in the field of pharmaceutical container materials such as ampule, glass bottle
and rubber stopper to increase consolidated net sales and improve market share.
(4) Issues and Challenges that the Group Faces
We will focus on earliest possible restoration to start operation in Kagamiishi plant of Tohoku Nipro
Pharmaceutical Corporation which got serious damage by the Great E ast Japan E arthquake. A
company -wide power saving campaign for controlling power usage, organization of proper
production schedule for each office, and review and adjustment of work hours are to be practiced so
as to realize stable supply.
In the domestic business of the Medical business, we will put effort into development of productswith least adverse impact on environment and safety -conscious (infection preventi ve) design for
medical care in each field of transfusion related products, dialysis related products, diabetes related
products and vascular-related product. Thus we will work on development of products friendly tohealthcare professionals, patients and global environment, and positive market development andsales reinforcement to meet the market needs.
-8-In overseas business, suffered by fluctuation of foreign exchange rat e in last fiscal year, we started
direct selling from group overseas plants to sales subsidiaries from this April and try to spread anddiminish the risk of foreign exchange to secure the profit. Moreover, new plants will be set up
sequentially in India, China, Indonesia and Bangladesh where we can see remarkable economic
development for corres ponding to their local needs, we will promote direct selling system in each
local entity to upgrade market share and try to increase the sales and profit, focusing on dialysis
related products whose demand has increased rapidly.
In the Pharmaceutical business, we will promote development of generic anticancer drug,
construction of its production system, construction of production system for bio medical drug anddevelopment of bio generic drug so as to revitalize self development, joint development and cont ract
manufacturing.
In the Material business, we will drive particularly establishment and innovation in glass processing
technologies and expand s elling t o not only domestic pharmaceutical companies but also oversea s
pharmaceutical companies. For overseas market development, we will promote joint vent ure
business to implement production control and improve quality and strive to increase sales andprofits.

-9-

4. Consolidated Financial Statements(1) [ Consolidated Balance Sheets ]As ofMarch 31, 2010
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Land
Lease Assets
Accumulated depreciation
Lease Assets, net
Construction in progress
Other
Accumulated depreciation and impairment loss
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Lease Assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets- 10 -(Amount: million yen)
As ofMarch 31, 2011

59,26656,30338,503
6,192
10,008
3,149
6,937
(432)
179,928

81,115
61,23742,697
6,783
11,461
4,204
9,935
(414)
217,021

107,011(56,495)
50,515
117,534(81,395)
36,13819,766
1,393
(173)
1,220
11,99225,032(20,456)
4,575
124,208

111,353(61,064)
50,289135,449(92,361)
43,087
20,115
1,519
(437)
1,082
8,989
27,150(22,209)
4,941
128,505

561
78
1,736
2,376

7,833
291
5,442
13,56872,875
334
4,071
2,788
(3,186)76,883
203,468
383,396

105,564
2,489
3,905
8,439
(2,984)
117,414
259,488476,510

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccurued directors' bonuses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for loss on business liquidation
Provision for loss on disaster
Notes payable-facilities
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds
with subscription rights to shares
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on litigation
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets- 11 -

As ofMarch 31, 2010

(Amount: million yen)
As ofMarch 31, 2011

29,20364,442
10,00010,160
318
5,792
204
4,932
1,758
23
1,954
3,869
5,543
138,204

33,581
96,65910,000
5,000
375
5,771
208
3,165
2,112
26
1,954
4,040
5,937
7,568
176,401

28,00043,00015,00015,00072,839
1,098
7,771
1,972
614
170
1,655
129,121267,325

120,549
1,086
7,465
1,615
668
170
1,516
191,070
367,472

28,66329,972
47,219(862)
104,993

28,66329,972
46,631(864)
104,403

15,024(5,708)9,316
1,761
116,070
383,396

11,387(9,281)2,106
2,527
109,037
476,510

(2) [ Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ]Consolidated Statement of Income(Amount: million yen)
FY2009FY2010(From April 1, 2009 (From April 1, 2010
to March 31, 2010) to March 31, 2011)
177,829
195,942
126,144
137,768
51,68558,17433,59140,94918,094
17,225Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Stock issuance cost
Bond issuance cost
Depreciation
Foreign exchange losses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on prior period adjustment
Settlement received
Compensation income
Surrender value of insurance
Gain on sale of investment securities
License fee for selling rightGain on revision of retirement benefit plan
Other
Total extraordinary income- 12 -

236
619
457
1,314

319
923
466
1,709

2,251
21
34
187
455
1,329
219
4,499
14,908

2,431
103
41
2,443
200
343
5,563
13,371

25
508
113
15
193
109
21
986

21
122
835
300
451
88
1,819

(Amount: million yen)
FY2009FY2010(From April 1, 2009 (From April 1, 2010
to March 31, 2010) to March 31, 2011)
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Impairment loss
Loss on abandonment of inventories
Abnormal manufacturing cost
Loss on reduction of noncurrent assets
Corresponding loss to compensation income
Loss on voluntary product recall
Write-off of investment securities
Loss on business liquidation
Loss due to disaster
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

3
337
23
185
541
508
190
120
115
2,024
13,870
6,842
(475)
6,367
251
7,252

10
165
64
207
372
230
1,109
5,260
336
7,758
7,431
6,371
(1,751)
4,619
2,812
356
2,455

Consolidated Statements of Comprehensive Income

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to shareholdersof parent company
Comprehensive income attributable to minority interests- 13 -(Amount: million yen)
FY2009FY2010(From April 1, 2009 (From April 1, 2010
to March 31, 2010) to March 31, 2011)
2,812-(3,637)(3,617)(7,254)(4,442)-(4,753)-311

(3) [ Consolidated Statements of Shareholders' Equity ]FY2009(From April 1, 2009
to March 31, 2010)(Amount: million yen)
FY2010(From April 1, 2010
to March 31, 2011)

28,663

28,663

28,663

28,66329,97329,972(0)(0)
29,972(0)(0)
29,972

41,45747,219(1,490)7,252
5,761
47,219(3,044)
2,455(588)
46,631

(849)

(862)

(13)
1
(12)
(862)

(1)
0
(1)
(864)

99,244

104,993(1,490)
7,252
(13)
1
5,749
104,993(3,044)
2,455
(1)
0
(590)
104,403

Shareholder's equity
CapitalBalance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Capital Surplus
Balance at beginning of year
Increase(decrease) during the period
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Earned surplus
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Net increase(decrease) during the period
Balance at end of year
Treasury stock
Balance at beginning of year
Increase(decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Total Shareholders' equity
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year

- 14 -

Valuation and translation differences
Valuation differences on available-for-sale securities
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Foreign currency translation adjustment
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total accumulated other comprehensive income
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Minority interests
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total net assets
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year

- 15 -

FY2009(From April 1, 2009
to March 31, 2010)(Amount: million yen)
FY2010(From April 1, 2010
to March 31, 2011)

4,998

15,024

10,025
10,02515,024(3,636)(3,636)
11,387(9,193)(5,708)

3,485
3,485
(5,708)(3,573)(3,573)(9,281)(4,195)

9,316

13,511
13,511
9,316(7,209)(7,209)
2,106

1,511

1,761

250
250
1,761

766
766
2,527

96,560116,070(1,490)
7,252
(13)
1

(3,044)
2,455
(1)
0

13,761
19,510116,070(6,443)(7,033)109,037

(4) [ Consolidated Statements of Cash Flows ](Amount: million yen)
FY2009FY2010(From April 1, 2009 (From April 1, 2010
to March 31, 2010) to March 31, 2011)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Equity in (earnings) losses of affiliates
Increase (decrease) in allowance for doubtful accounts

Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts receivable-trade

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade

Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other loss (gain)
SubtotalInterest and dividends income received
Interest expenses paid
Other proceeds
Other payments
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investment in subsidiaries resulting inin scope of consolidation
Payments for investment in capital
Purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Payment for retirement of property, plant and equipment

Proceeds from governmental subsideies
for investment in property and equipment
Net Decrease (increase) in short-term loans receivable

Payments of loans receivableCollection of loans receivable
Other proceeds
Net cash provided by (used in) investment activities- 16 -

13,87018,420
23
294
1,329
(25)
(856)
2,251
38
(7,035)(2,856)
4,987
(676)
1,447
698
31,913
1,009(2,304)456(598)(4,236)
26,2407,431
21,244
64
1,743
200
(212)
(1,242)2,431
2,557(4,926)(5,472)
6,542
(450)
746
162
30,821
1,253(2,404)552(205)(8,217)
21,799(2,889)3,689(20,646)-(3,192)
3,992(62,771)
4,804

-

(624)

(26,071)58-(5,439)(20,138)
51
(24)

710

25

196
(201)
0
159
(44,994)

(588)
(769)
15
0
(84,658)

(Amount: million yen)
FY2009FY2010(From April 1, 2009 (From April 1, 2010
to March 31, 2010) to March 31, 2011)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds form issuance of bonds
Redemption of bonds
Decrease (increase) in treasury stock
Repayments of finance lease obligations
Cash dividends paid
Cash dividends paid to minority shareholders
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Cash and cash equivalents at end of period- 17 -

13,712
10,00029,111(18,757)
17,971(20,140)(15)(234)(1,489)(2)(21)
30,135(545)
10,83545,352

23,06280,108(23,234)
19,890(10,160)(3)(355)(3,038)
(3)

-

1,595

56,18878,921

86,265(2,286)
21,13856,118(5) Notes Related to Going Concern
N/A(6) Basis of P reparation for the Consolidated Financial Statements
1 ) Scope of consolidation[1] Cons olidated subsidiaries: 30
Name of representative consolidated subsidiaries.
・・・・

Nipro Medical Industries, Ltd.
Nipro Europe N.V.
Nipro Diagnostics, Inc.
Tohoku Nipro Pharmac eutical Corporation

・
・
・
・

Nipro (Thailand) Corporation Ltd.
Nipro Medical Corporation
Nipro Pharma Corporation
Nipro Patch Co.,Ltd.

Because Nipro Diagnostics, Inc. and other 3 subsidiaries increased in importance, Chengdu Pingyuan
Nipro Pharmaceutical Packaging Co., Ltd. was invested and Nipro Australia Pty Ltd. was established,these companies are included in scope of consolidation from the consolidated accounting year 2010.
[2] Name of representative unconsolidated subsidiary・ Nipro India Corporation P vt. Ltd.
The unconsolidated subsidiaries are small-sized companies, whos e combined total assets, net sales,
net income and earned surplus in the aggregate (averaged for recent 5 years) are not material to theconsolidated financial statements.
2 ) Application of equity method
Number of affiliate accounted for by the equity method: 1

Bipha Corporation

Number of affiliate not accounted for by the equity method: 1
Cell Science & Technology Institute, Inc.
The equity method is not applied to the unconsolidat ed subsidiaries and the affiliate company, since
they are not material to the consolidat ed net income (amounts worth t o equity) and earned
surplus(amounts worth to equity) etc., either individually or in the aggregate.
3 ) Accounting period of consolidated subsidiaries
Among the consolidat ed subsidiaries, accounts closing date of the foreign subsidiary is December 31.
Cons olidated financial statements as of that dat e are used in preparing for consolidated financial
statements, and necessary adjustments are made to reflect s ignificant transactions that occurred bet ween
December 31 and March 31.
4 ) Accounting principles and practices[1] Valuation standards and methods for significant assets
Securities
A vailable-for-sale 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 met hod. )Securities withoutmarket quotations ············Valued at cost by the weighted average method
Inventories
Valued at cost by the weighted average method (Writing down method below cost to the net
selling value for decreased profitability)-18-

[2] Method of depreciation and amortization for significant depreciable assets
Tangible fixed assets: ······Declining-balance method(Excluding lease assets)
However, buildings acquired after April 1, 1998 (excluding attachedstructures), are depreciated by straight-line method.
The foreign subsidiaries use straight-line method in accordance withthe tax laws of their countries.
Lease assets
Lease assets under the finance lease transaction that does not trans fer ownership
Recorded by straight-line method its useful lives are equals to thelease term and the residual values are equal to zero.
We still have adopt ed the similar manner to an ordinary rental
transaction for the finance lease transactions that do not trans fer
ownership and the starting dates of the lease transactions were
before March 31, 2008.
[3] Method of treating significant deferred asset
Bond issue cost:
Record in full as expenses on ex penditure[4] 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 ofprovision is based on historical write -off rates, and for the doubt ful
receivables, based on the specific collectability.
Provision for bonuses·············· In order to cover the payment of bonuses to employees, anallowance is provided for the estimated amount of bonuses to be
paid, prorated for the consolidated accounting period.
Provision for directors‟
bonuses ·····························In order to cover the payment of bonuses to directors and corporate
auditors, an allowance is provided for the estimated amount ofbonuses to be paid, prorated for the consolidat ed accounting period.
Provision for loss on
business liquidation·············In connection wit h withdrawal from retail business which we sold theshares of the consolidated subsidiaries, the estimated loss at the endof the consolidated accounting period is posted for disposal of land,building and other properties to be sold accordingly.
Provision for loss
on disasterIn order to cover the payment of the repairs expense for fixed
assetsdamaged by the Great East Japan Earthquake, anallowance is provided for the estimated amount to be needed, at endof the consolidat ed accounting period.

Provision for retirement
benefits ······························ 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 t he consolidated accounting
period.
Past service liabilities are expenses mainly for five years using thestraight line met hod.
Actuarial difference is expensed in the following consolidated
accounting period after the year of such recognition, using thestraight-line method for five years.
Provision for directors‟
retirement benefits ················ An allowance is provided for severanc e indemnity for directors andcorporate directors based on the amounts to be paid at the end of theconsolidated accounting period.
Provision for- 19 -

loss on litigation................... In order to cover the probable losses on lawsuit, an allowance forloss is provided for the estimated amount acceptable as needed.
[5] 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 y en
using the spot exchange rate of the consolidated balance sheet date, and translation differences arerecognized as gains or losses. The assets and liabilities of foreign subsidiaries etc. are translat ed toJapanese 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.
[6] Amortization of goodwill.
Goodwill is amortized using the straight -line method for five years[7] 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 cas h on hand, cash inbanks that are able to withdraw as needed, and short-term investment that will be matured within threemonths after acquisition, easy to be converted into cash without much risks from fluctuation of prices.
[8] Other significant basis on preparation for cons olidated financial statements
Consumption taxes
Cons umption taxes are excluded from revenues and expenses accounts.

(7) Change in Significant Matter of Basis of Preparation for Consolidated Financial Statements
1) Application of Revised Accounting Standard for Equity Method of Accounting for Investments andPractical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using theEquity Method
Effective from the consolidated accounting year 2010, the Company has applied the Revis ed AccountingStandard for Equity Method of Accounting for Investments (Accounting and Standards Board of Japan(ASBJ) Statement No. 16, issued March 10, 2008) and the Practical Solution on Unification of Accounting
Policies Applied to Associates Accounted for Using the Equity Method (P ractical Issues Task Force(PITF) No. 24, issued Marc h 10, 2008). There is no impact on profit and loss regarding to this change.

2) Application of Accounting Standard for Asset Retirement Obligations
Effective from the consolidated accounting year 2010, the Company has applied Accounting Standard
for Asset Retirement Obligations (ASB J Statement No. 18, issued on March 31, 2008) and Guidance on
Accounting Standard for Asset Retirement Obligations (ASBJ Guidance No. 21, issued on March 31,2008). The impact of this change was to reduce both operating income and ordinary income by 12 million
yen and income before income taxes by 97 million yen.
3) Application of Accounting Standards for Business Combinations
Effective from the consolidated accounting year 2010, the Company has applied Accounting Standard
for Business Combinations (ASBJ Statement No. 21), issued on Dec ember 26, 2008; AccountingStandard for Consolidat ed Financial Statements (ASBJ Statement No. 22), issued on December 26,
2008; Partial Amendments to Accounting Standard for Research and Development Costs(ASBJ
Statement No. 23), issued on December 26, 2008; Revised Accounting Standard for Business
Divestitures (ASBJ Statement No. 7), issued on December 26, 2008; Revised Accounting Standa rd for
Equity Method of Accounting for Investments (ASBJ Standard No. 16), issued on December 26, 2008;
and Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestures (ASBJ Guidance No. 10),issued on December 26, 2008. There is no impact on profit
and loss regarding to these changes.

(8) Additional Information
1) Accounting Standard for Presentation of Comprehensive Income
Effective from the consolidated accounting year 2010, the Company has applied Accounting Standards- 20 -

for Presentation of Comprehensive Income (ASBJ Statement No.25, issued on June 30, 2010).
However, the amount of accumulat ed other comprehensive income and total accumulated othercomprehensive income in the previous consolidated accounting period are completed by the amount ofvaluation and translation adjustments and total valuation and translation adjustments.
2) Revision of Retirement Benefit Scheme
The Company and the consolidated subsidiary company, Nipro Medical Industries Co., Ltd. had adopted
the retirement benefit scheme framed by unfunded defined benefit pension plan and tax -qualified
retirement pension plan. However, from January 1st, 2011, the retirement benefit scheme was transferredto the scheme framed by unfunded defined benefit plan, funded defined benefit pension plan and defined
contribution pension plan while the tax-qualified retirement pension plan was finished. In accordance withthis transfer, we resulted 451 million yen of “gain on revision of retirement benefit plan” as extraordinary
gain, applying “Accounting standard for trans fer between retirement benefit plans” (ASBJ Guidance No.1).

(9) Notes to the Consolidated Financial Statements(Not es to the Consolidat ed Balance Sheets)(Previous period)
1) Pledged assets(Current Period)

9,195

mil.yen8,989

mil.yen34

mil.yen107

mil.yen

22,786

mil.yen

16,685

mil.yen-mil.yen5,439

mil.yen2) Discounted notes receivable3) A ccou nts relate d to un co n soli da te d sub si dia ri e s an d affilia te co m pa nie s
Investment securities (stock)
Other of investments and other assets(Investments in capital)(Not es to the Consolidat ed Statements of Income)(Previous period)
Research and development expenditure included inselling general and administrative expenses andmanufacturing cost.

4,846(Current Period)

mil.yen(Not es to the Consolidat ed Statement of Comprehensive Income)Current period (From April 1, 2010 to March 31, 2011)
1) Comprehensive income in the last consolidated accounting year
Comprehensive income attributable to shareholders ofparent company
Comprehensive income attributable to minority interests

20,763 million yen

Total

20,986 million yen

222 million yen

2) Other comprehensive income in the last consolidated accounting year
Valuation difference on available-for-sales securities

10,026 million yen

Foreign currency translation adjustment

3,456 million yen

Total

13,482 million yen- 21 -

4,977

mil.yen(Not es to the Consolidat ed Statements of Shareholders‟ equity)
Previous period (From April 1, 2009 to March 31, 2010)
1.

Sort and total numbers of Shared issues
Sort of shares
Common stock2.

Number of shares
As of March 31, 2009
63,878,505

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2010
63,878,505

Increased
numbers
8,076

Decreased
numbers622

Number of shares
As of March 31, 2010
455,328

Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2009
447,874(Not e) 1. The increased numbers are of purchase of shares whic h 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

November 11, 2009 at board of
directors meeting

Common stock

Total amount ofdividends paid

million of yen
1,490

Dividends
per shares
Yen
23.50

Basis date

Effective date

September 30,2009

December 9, 2009

(2) Dividends of basis date belonging to the cons olidated accounting period to its effective date be in t henext consolidated accounting period.
Scheduled
Decision

Sort ofsharesProceeds ofdividends

Total amount ofdividends paid

Dividends
per shares

June 25, 2010 atordinary
generalshareholders‟ meeting

Commonstock

Earnedsurplusmillion of yen
1,870

Yen
29.50

Basis date

Effective date

March 31, 201 0

June 28, 2010

Current period (From April 1, 2010 to March 31, 2011)
1.

Sort and total numbers of Shared issues
Sort of shares
Common stock2.

Number of shares
As of March 31, 2010
63,878,505

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2011
63,878,505

Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2010
455,328

Increased
numbers
1,182

Decreased
numbers
90

Number of shares
As of March 31, 2011
456,420(Not e) 1. The increased numbers are of purchase of shares whose number is less than unit amount.
2. The decreased numbers are of selling of shares whose number is less than unit amount.
3.

Dividends(1) Amount of dividends paid
Decision

Sort of shares

Total amount ofdividends paid

June 25, 2010 at ordinary
general shareholders‟ meeting
November 10, 2010 at board of
directors meeting

Common stock

million of yen
1,870
million of yen
1,173

Common stock

Dividends
per shares
Yen
29.50
Yen
18.50

Basis date

Effective date

March 31, 2010

J un e 28, 20 1 0

Se p te mb er 3 0 , 20 10

December 9, 2009

(2) Dividends of basis date belonging to the cons olidated accounting period to it s effective date be in t henext consolidated accounting period.
Scheduled
Decision

Sort ofsharesProceeds ofdividends

Total amount ofdividends paid

Dividends
per shares

June 28, 2011 atordinary
generalshareholders‟ meeting

Commonstock

Earnedsurplusmillion of yen
1,997

Yen
31.50

- 22 -

Basis date

Effective date

March 31, 201 1

June 29, 2011

(Segment information)<Segment information by business category>
FY2009 (From April 1, 2009 to March 31, 2010)(Millions of yen)
Eliminations/Corporate

Consolidated

177,829-

177,829

108

4,253

(4,253)-

12,811

898

182,083(4,253)

177,82953,353

10,887730

157,202

2,533

159,735

18,162

4,625

1,924

167

24,880(6,786)18,094

152,733

107,875

11,044

5,766

277,419

105,977

383,396

9,050

8,131

371

83

17,637783

18,420

23

-

-

-

23

-

23

9,438

4,674

243

130

14,486722

15,208

MedicalEquipment

Pharmaceutical

Glass &
Materials(1)S ales to third parties

110,393

57,9788,668

789(2)Int er-s egment sales
and transfers

-

0

4,143

110,393

57,978Operating expenses

92,231

Operating income

Other

Total

1. Net sales

Total

2.

Assets, depreciation
impairment loss and capital
expenditures

AssetsDepreciation
Impairment loss of fixed
assetsCapit al expenditures

Notes: 1.

Classification of business categories and main products in each business category
Business categories are classified based on the proximity in terms of purposes and manners ofusage of the products in the market.
Main products belonging to each business category 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 forlighting purposes, stoppers for plastic containers and rubber stoppers, etc.

Other

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

2.

Operating expenses of “Eliminations/Corporate” included unallocated corporate costs of 6, 786
million yen. The unallocated c orporate costs consisted primarily of the parent company‟s
research and development costs and headquarters administration costs.

3.

Assets of “Eliminations/Corporate” included corporate assets of 106,079 million yen. The
corporate assets consisted mainly of parent company‟s surplus operating funds (cash on handand in banks), long-term investment funds (investment securities) and assets related to researchand development, as well as of the assets belonging to the headquarters administration
department.

4.

Depreciation and capital expenditures included long-term prepaid expenses and its amortization.

- 23 -

<Segment information by geographical area>
FY2009 (From April 1, 2009 to March 31, 2010)
Japan

America(Millions of yen)
Europe

Asia

Total

Eliminations/Corporate

Consolidated

177,829

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

139,378

17,833

12,9007,717

177,829-(2) Inter-segment sales
and transfers

29,444591

315,32745,368(45,368)-

Total

168,823

18,425

12,90423,045

223,197(45,368)

177,829

Operating expenses

145,799

18,50912,857

20,856

198,021(38,285)

159,735

Operating income (loss)

23,024

(84)

47

2,188

25,176(7,082)

18,094

2. Assets

276,570

6,268

7,248

10,879300,967

82,429383,396

Notes: ··1.

Operating ex penses of “Eliminations and Corporate” included unallocated corporate costs of 6,786
million yen. The unallocated corporate costs consisted primarily of the parent company‟s research anddevelopment costs and the headquarters administration costs.

2.

Assets of “Eliminations/Corporate” included corporate assets of 106,079 million yen. The corporate
assets consisted mainly of parent company‟s surplus operating funds (cash on hand and in banks),
long-term investment funds (investment securities) and assets related to research and development,
as well as of the assets belonging to the headquarters administration department.

3.

Classification of countries or areas is based on geographical proximity .

4.

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<Overseas sales>
FY2009 (From April 1, 2009 to March 31, 2010)

1. Overseas sales(Millions of yen)

America

Europe

Asia

Total

27,864

20,662

10,83559,362

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

Notes:

1.
2.
3.

177,829

15.7％

11.6％

6.1％

33.4％

Overseas sales represent those of the Company and the consolidated subsidiaries to countries
and areas outside of Japan.
Classification of countries or areas is based on geographical proximity .
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- 24 -

<Segment information>
1.

Outline of reportable operating segments

Applied ASBJ Statement No.17 “The Revised Accounting Standard for Disclosures of Segments of anEnterprise and Related Information”, the reportable operating segments are components of an entity for which
separate financial information is available and evaluated regularly by the board of director in determining theallocation of management resources and in assessing performance. We currently operate our business on astand-alone basis with the divisional organization and evaluate the performance of sales and manufacture ofeach division regardless of their products. Accordingly, we divide our operations into 3 reportable operating
segments on the basis of its main products: Medical, Pharmaceuticals and Glass & Materials.
*MedicalDomestic division sells injection- and infusion-related products, artificial organ-related products, highly
functional products, dialysis-related products and diabetic-related products. In the international division, head
office plays the center role and place overseas sales and manufacturing base for medical equipment and sales
injection- and infusion-related products, artificial organ-related products and diabetic-related products.
*Pharmaceutical
Mainly, domestic subsidiaries sell and manufacture injectable drug, oral drugs and products by contract
manufacturing like combination products (Kit injectable).
*Glass & Materials
In the field of glass for pharmac eutical purpos es, we sell glass for glass tube, glass for ampoule. In the fieldof glass & materials products, we sell glass for thermos bottles and glass for lighting purpose. In addition, wesell container for combination products and undertake the contract sales of pharmaceuticals related to thecontainer for combination products from pharmaceutical company.
2.

Method of calculating sales and profit by reportable operating segment

The accounting process of the segments follows the accounting principles and practices listed in Basis ofPreparation for the Consolidated Financial Statements. Profit of the segment is based on operating income.
Internal revenue and transfer to revenue between segments are based on the market realized price.

- 25 -

3.

Information on amount of sales, profit or loss, assets and other items by report able segment
FY2010 (From April 1, 2010 to March 31, 2011)(Millions of yen)

Reportable Segment
Other(Note.1)

Total

Adjustment(Note.2)

Consolidated
financialstatements(Note.3)

MedicalPharmaceutical

Glass &
Materials

Total(1)S ales to third parties

132,816

38,00424,703

195,525

417

195,942-

195,942(2)Int er-s egment sales
and transfers

1,194

18,277

3,856

23,32943

23,372(23,372)-

Total

134,01156,282

28,560218,854461

219,315(23,372)

195,942

Segment profit

18,437

1,657

2,700

22,79588

22,883(5,658)17,225

Segment assets

178,937

105,672

17,006

301,616

4,639

306,256

170,253

476,510

11,9388,296

228

20,46354

20,517726

21,244

1,503

201

38

1,743

-

1,743

-

1,743

(3) Investment to companies
accounted for by theequity method

-

-

-

-

-

-

1,763

1,763

(4) Increase in tangible
and intangible fixed
assets14,8786,808

103

21,790-21,7901,531

23,322

Net sales

Other items(1) Depreciationamortization(2) Amortization
goodwill

Note:

and
of

“Other” is the business segment which is not included in the reporting segment and consist of realestate income and sales by headquarter.
2. Adjustment is as followed.
(1) Adjustment for the segment profit of (5,658) million yen includes elimination of inter -segment
transaction of 333 million yen and corporate cost of (5,991) million yen. Corporate cost consists
primarily of sales, general and administrative expenses and research and development costwhich do not belong to the reporting segment.
(2) Adjustment for the segment assets of 170,253 million yen includes elimination of inter-segment
transaction of (57,266) million yen and corporate assets of 227,519 million yen. Corporate assets
consisted primarily of cash and deposit, investment securities, assets for development and assets
for management division of head office which do not belong to the reporting segment.
(3) Adjustment for depreciation and amortization of 726 million yen is for corporate assets.
Depreciation and amortization and increase in tangible and intangible fixed assets include
long-term prepaid expenses.
(4) Adjustment for increase in tangible and intangible fixed assets is increase in corporate assts.
3.
Segment profit is adjusted to the operating income on the consolidated statements of income.
1.

<Additional information>
Effective from the current consolidated accounting year, we have applied the Revised Accounting Standard
for Disclosures about Segments of an Enterprise and Related Information (ASBJ Statement No. 17, issued
March 27, 2009) and Guidance on Accounting Standard for Disclosures about Segments of an E nterpriseand Relat ed Information (ASBJ Guidance No. 20, issued March 21, 2008).

- 26 -

<Related Information>
The current year (from April 1, 2010 to March 31, 2011)
1. Information for each product and service
Disclosure is omitted as the same information is disclosed in segment information
2. Information for each area
(1) Net assets
Japan

America

124,904

Europe37,121(million of yen)
Total

Asia

20,707

13,209195,942(2) Tangible fixed assets
Japan

America

105,020

Europe5,779(million of yen)
Total

Asia
141

17,564

128,505

3. Information about impairment loss on fixed assets by reportable segments(million of yen)
Reportable operating segment
Medical38

Total

Glass &
Materials

Pharmaceutical
-

25

Other
64

Total
-

64

4. Information about unamortized balance of goodwill by reportable segments(million of yen)
Reportbale segment
MedicalBalance of theficical year-end

Pharmaceutical

7,287

Glass &
Materials

197

349

Total
7,833

Other

Total
-

7,833

(Business Combination)
The current accounting year (from April 1, 2010 to March 31, 2011 )Application of Purchase Method
We aquired the issued shares of Home Diagnostics, Inc. by tender offer wit h cash through NPAC (Nippon
Product Acquisition Corporation) which was established for aquisition purpose, and Home Diagnostics, Inc
became a subsidiary company. Following the acquisition, NPAC was absorbed into Home Diagnostics, Inc.
based on Delaware law; the former is an extinct company and the latter is a surviving company.
(1) Information of the aquired company[1] Name of the acquired compnay and its substance of the business
Name of the acquried company: Home Diagnostics, Inc.
Substance of the business:
Development, Manufature and Sales of diabetes relat ed products[2] Reas on for the business combination
To improve and strengt hen the business system for global marketing of diabetes related products inthe medical business.
[3] Date of the business combination- 27 -

[4]

[5]
[6]

March 15, 2010
Legal form of the business combination
Share trading with cash and merger (Home Diagnostics, Inc., a surviving company, absorbed NPAC,
an extinct company)
Name of the acquired company after the combination
Change to Nipro Diagnostics, Inc. from June 7, 2010
Rate of acquired voting right100%(2) The performanc e period of the acquired company included consolidated financial statements
From March 15, 2010 to December 31, 2010
(3) Cost of acquisition and the details
Consideration for acquisition

Current price for common stockof Home Diagnostics, Inc.

Direct expense for acquisition

Advisory fees etc

Cost of acquisition

19,452 million yen
64 million yen
19,517 million yen(4) Share exchange rate, calcuration method and number of issued share
N/A(5) Amount of goodwill, reason and depreciation met hod and period[1] Amount of goodwill
9,471 million yen[2] Reas on
Mainly because Nipro Diagnostics, Inc. is expected to generate excess earning power by expanding
diabetes relat ed products into America and global market.
[3] Depreciation method and period
Straight line method for 5 years(6) Main assets and liabilities accepted on the dat e of combination
Current assets
7,729 million yen
Nonc urrent assets
18,149 million yen
Total assets
25,879 million yen
Current liabilities
4,772 million yen
Nonc urrent liabilities
1,646 million yen
Total liabilities
6,418 million yen(7)

Estimated amount whic h could affect to the consolidated statement of income, suppose the businesscombination was complered at beginning of the current accounting year
Net sales
11,454 million yen
Operating income(617) million yen
Ordinary income(692) million yen
Income before income taxes and minority interests(692) million yen
Net income(485) million yen
Net income per share
4,852, 372.40 yen(Calc ulating method of estimated amount and important prec ondition)
As for calculating of estimated amount, we listed the number of Nipro Diagnostics, Inc. from January 1,
2010 to December 31, 2010 based on American accounting standards, and goodwill occurred in thebusiness cobination was not armotized.
The amount listed above was not certified by Certified Public Accountants.

- 28 -

(Per Share Information)
Previous period
Current period(From April 1, 2009 To March 31,(From April 1, 2010 to Marc h 31, 2011)2010)
Net assets per share

1,802. 33 yen

1,679. 37 yen

Earnings per share

114.35 yen

38.72 yen

Diluted Earnings per share

114.14 yen

34.88 yen

(Not e) Base of the caluc ulation
1. Net assets per share
Previous period
As of March 31, 2010

Current period
As of March 31, 2011

116,070

109,037

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

1,761

2,527

Net assets related to the common stocks(million yen)

114,309106,509

Common stocks issued (Thous ands shares)

63,87863,878455

456

63,42363,422

Total net assets in B/S (million yen)

Treas ury stocks of common stock (Thousands shares)
Number of common stocks(thousand shares) utilized forcomputation of net assets per share
2. Earnings per share and diluted earnings per share

Previous period(From April 1, 2009
To March 31, 2010)

Current period(From April 1, 2010
To March 31, 2011)

Earnings per share
Net income (Million yen)

7,252

2,455

-

-

Net income relat ed to the common stock (Million yen)

7,252

2,455

A verage shares of the common stock during the period(Thousands shares)

63,42563,422--

Number of common stock(thousand shares) increased
Stock acquisiton right

113

6,993

Overview of the potential shares not included in thecomputation of diluted earning share because of nothaving a dilutive effect--Amount not attributed to the common stock (Million yen)

Diluted earnings per share
Net income adjustment (Million yen)(Material Subsequent E vent)
N/A(Omission of Disclosures)
We have omitted disclosures concerning, Lease trade, Related party transactions, Tax effected accounting,
Financial instruments, Securities, Derivative transactions, Retirement Benefit Plan, Stock options, Assets
Retirement Obligations, and Investment and Rental property, considered materiality in necessity of disclosure inthis summary report.
- 29 -

5. Non-consolidated Financial Statements(1) [ Non-consolidated Balance Sheets ](Amount: million yen)

As ofMarch 31, 2010
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable from subsidiaries and affiliates
Accounts receivable-otherConsumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation and impairment loss
Buildings, net
Structures
Accumulated depreciation and impairment loss
Structures, net
Machinery, equipment
Accumulated depreciation and impairment loss
Machinery and equipment, net
VehiclesAccumulated depreciation and impairment loss
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Lease Assets
Accumulated depreciation
Lease Assets, net
Construction in progress
Total property, plant and equipment- 30 -

As ofMarch 31, 2011

44,095
12,98343,434
20,226
2,320
3,194
369
369
1,679
4,495
852
351
256
(75)
134,554

60,833
12,41142,346
19,563
2,082
3,163
1,938
542
1,769
3,499
1,101
741
295
(67)
150,22137,278(24,384)
12,893
1,753(1,417)335
40,243(30,497)
9,745
109
(103)
6
13,023(11,418)
1,604
11,527
311
(66)
244
3,893
40,25039,479(25,488)
13,991
1,963(1,480)483
49,960(34,857)
15,102107(103)
313,792(12,168)
1,623
11,527
390
(147)
243
537
43,513

(Amount: million yen)

Intangible assets
Patent right
Right of trademark
SoftwareLease Assets
Telephone subscription right
Other
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital of subsidiaries and affiliates
Long-term loans receivable from subsidiaries and affiliates
Long-term prepaid expenses
Guarantee deposits
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31, 2010

As ofMarch 31, 2011

49
1
223
62
23
187
547

39
1
587
280
23
122
1,054

47,12585,82012,647
15,508
701
3,909
1,057
(2,826)(6,538)
157,405
198,203332,758

86,258102,133
19,387
3,636
638
3,690
683
(2,619)(6,538)207,270
251,838
402,060(Amount: million yen)

Liabilities
Current liabilities
Notes payable
Accounts payable
Short-term loans payable
Current portion of long-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-other
Provision for directors' bonuses
Accrued expenses
Income taxes payable
Deposits received
Provision for bonuses
Provision for loss on business liquidation
Notes payable-facilities
Other
Total current liabilities- 31 -

As ofMarch 31, 2010

As ofMarch 31, 2011

9,335
20,83028,50015,441
10,00010,000
85
3,207
204
640
3,320
47
885
1,954
2,152
602
107,207

10,684
21,431
41,40021,47410,000
5,000
158
2,922
208
643
2,000
51
938
1,954
4,613
706
124,186

(Amount: million yen)Noncurrent liabilities
Bonds payable
Convertible bond-type bonds
with subscription rights to shares
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on litigation
Long-term guarantee deposited
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for dividends
Reserve for special depreciation
Reserve for advanced depreciation of noncurrent assets
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 32 -

As ofMarch 31, 2010

As ofMarch 31, 2011

28,00043,00015,00015,00050,791
237
4,763
920
524
170
1,241
101,648
208,855

90,407
392
2,604
544
541
170
1,233
153,893
278,080

28,663

28,66329,972
029,972

29,972
029,972

1,196
16
7
90
47,335
4,466
53,111(862)
110,885

1,196
16
90
49,735
5,588
56,626(864)
114,398

13,01713,017
123,902332,758

9,581
9,581
123,979
402,060

(2) [ Non-consolidated Statements of Income ]Net sales
Net sales of finished goods
Net sales of goods
Rent income of real estate
Total net sales
Cost of sales
Beginning finished goods
Beginning goods
Cost of products manufactured
Purchase of finished goods
Cost of purchased goods
Cost of real estate rent
Total
Ending finished goods
Ending goods
Total cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Bond issuance cost
Sales discounts
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income- 33 -

FY2009(From April 1, 2009
to March 31, 2010)(Amount: million yen)
FY2010(From April 1, 2010
to March 31, 2011)

112,355
25,005484
137,844

119,067
24,191
461
143,720

15,1195,921
41,48843,442
18,538420
124,930
14,695
5,531
104,70333,14020,205
12,935

14,695
5,531
40,204
48,427
20,372373
129,604
13,416
6,147
110,041
33,67920,377
13,302

474
595
401
1,471

369
892
349
1,611

981
622
34
5
1,245
35
2,925
11,481

1,142
603
103
5
2,511
109
4,476
10,437(Amount: million yen)
FY2009FY2010(From April 1, 2009 (From April 1, 2010
to March 31, 2010) to March 31, 2011)
Extraordinary income
Gain on sales of noncurrent assets
Settlement received
Gain from the prior-period adjustment
Compensation income
Surrender value of insurance
Gain on sale of investment securities
Gain on revision of retirement benefit plan
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Corresponding loss to compensation income
Loss on voluntary product recall
Compensation for damage
Write-off of investment securities
Loss on disaster
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income- 34 -

7
15
6
193
109
16
347

2
122
828
340
6
1,300

49
190
120
89
75
523
11,305
4,460
(85)
4,375
6,930

82
240
230
141
279
975
10,762
4,113
89
4,202
6,559

(3) [ Non-consolidated Statements of Shareholders' Equity ]Shareholder's equity
CapitalBalance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Capital Surplus
Capital reserve
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Other Capital Surplus
Balance at beginning of year
Increase(decrease) during the period
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Total capital surplus
Balance at beginning of year
Increase(decrease) during the period
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Earned surplus
Earned reserve
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Other earned surplus
Dividend reserve
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Special depreciation reserve
Balance at beginning of year
Increase(decrease) during the period
Reversal of Special depreciation reserve
Net increase(decrease) during the period
Balance at end of year

- 35 -

FY2009(From April 1, 2009
to March 31, 2010)(Amount: million yen)
FY2010(From April 1, 2010
to March 31, 2011)

28,663

28,663

28,663

28,66329,972

29,972

29,972

29,972

1

0

(0)
(0)
0

(0)
(0)
0

29,97329,972(0)(0)
29,972(0)(0)
29,972

1,196

1,196

1,196

1,196

16

16

16

16

23

7

(16)
(16)
7

(7)
(7)
-

Reserve for reduction in fixed assets
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
General reserve
Balance at beginning of year
Increase(decrease) during the period
Provision of general reserve
Net increase(decrease) during the period
Balance at end of year
Earned surplus carried forward
Balance at beginning of year
Increase(decrease) during the period
Dividends of surplus
Net income
Reversal of Special depreciation reserve
Provision of general reserve
Net increase(decrease) during the period
Balance at end of year
Total earned surplus
Balance at beginning of the period
Increase(decrease) during the period
Dividends of surplus
Net income
Reversal of Special depreciation reserve
Provision of general reserve
Net increase(decrease) during the period
Balance at end of year
Treasury stock
Balance at beginning of the period
Increase(decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year

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FY2009(From April 1, 2009
to March 31, 2010)(Amount: million yen)
FY2010(From April 1, 2010
to March 31, 2011)

90

90

90

90

47,33547,33547,3352,400
2,400
49,735

(989)

4,466

(1,490)
6,930
16
5,455
4,466

(3,044)6,559
7(2,400)
1,122
5,588

47,672

53,111(1,490)6,930
5,439
53,111(3,044)
6,559
3,514
56,626

(849)

(862)

(13)
1
(12)
(862)

(1)
0
(1)
(864)

Total Shareholders' equity
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Valuation and translation differences
Valuation differences on available-for-sale securities
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total valuation and translation differences
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total net assets
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year

- 37 -

FY2009(From April 1, 2009
to March 31, 2010)(Amount: million yen)
FY2010(From April 1, 2010
to March 31, 2011)

105,458

110,885(1,490)
6,930
(13)
1
5,426
110,885(3,044)
6,559
(1)
0
3,513
114,398

3,747

13,017

9,269
9,269
13,017(3,436)(3,436)
9,581

3,747

13,017

9,269
9,269
13,017(3,436)(3,436)
9,581

109,206

123,902(1,490)
6,930
(13)
1

(3,044)
6,559
(1)
0

9,269
14,696
123,902(3,436)76
123,979

6.

OthersChanges in Directors(1) Change in representative of the company
N/A(2) Change in other directors or statutory auditors
1) Candidate for statutory auditors to be newly assigned (Scheduled assignment date: June 28, 2011)
Statutory auditor

Kazumichi Irie

Note: Mr. Kazumichi Irie is a candidate for external statutory auditor s tipulated in article 2, no.16 of theCompany code.

2) Statutory auditors to resign (Scheduled resigning date: June 28, 2011)
Statutory auditor

3) Candidate for spare statutory auditors
Spare statutory audit or

Kiyoshi Kase

(Scheduled assignment dat e: June 28, 2011)
Kiyoshi Kase

Note: Mr. Kiyoshi Kase is a candidate for external statutory auditor s tipulated in article 2, no.16 of theCompany code.

- 38 -