Summary Report of Consolidated Financial Results
For the Three Months Period ended June 30, 2017
August 10, 2017stCompany name: NIPRO CORPORATION
TSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko Sano, President and Representative Director
Contact person: Takehito Yogo, Director and General Manager of Corporate Planning Headquarters
TEL: (06)6372-2331
Filing date of quarterly reporting: August 14, 2017
Payment date of cash dividends: Supplemental material on quarterly reporting: No
Presentation on quarterly results: No(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Three Months ended June 30, 2017 (From April 1, 2017 to June 30, 2017)(1) Consolidated Results of Operations(Note: Percentages represent changes compared with the same period of the previous fiscal year.)
Profit attributable to
Net Sales
Operating Income
Ordinary Income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
3 months ended June 30, 2017
4,242
((－
93,5525.0
6,148(33.6)
6,241 ( 185.6)
3 months ended June 30, 2016
89,1241.2
9,257(69.0)
2,185(62.7)
213(94.5)
Note: Comprehensive income

3 months ended June 30, 2017: 10,352 million yen (- %) 3 months ended June 30, 2016: (14,509) million yen (-%)

Yen
25.53
1.26

Diluted Earnings
per share
Yen
23.15
1.14

(2) Consolidated Financial Position
Total Assets
Millions of yen
As of June 30, 2017
762,951
As of March 31, 2017
752,839Net Assets
Millions of yen
183,159
176,408

Earnings per share
3 months ended June 30, 2017
3 months ended June 30, 2016

Note: Equity

2.

June 30, 2017: 172,817 million yen

Equity Ratio
%
22.7
22.1

March 31, 2017: 166,082 million yen

Dividends
First-quarter
Yen

Annual Dividends per Year
Year-end
Second-quarter
Third-quarter
Yen
Yen
Yen
7.50
21.50

Year ended March, 2017
Year ending March, 2018Year ending March, 2018
17.50
(Forecast)
Note: Revisions to the forecast of cash dividends in the current quarter: No

3.

-

20.00

Total

Yen
29.00
37.50

Forecast of Consolidated Financial Results for the Year ending March 31, 2018 (From April 1, 2017 to March 31, 2018)(Note: Percentages for the full year and for the 2Q cumulative period represent changes compared with the previous fiscal
year and the same quarter of the previous fiscal year, respectively.)
Profit attributable
OperatingEarnings
Net Sales
Ordinary Income
to owners of
Incomeper Share
parentMillions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
6 months ending Sept. 30, 2017
191,500
7.8 14,000(12.2)
12,900
93.7
8,100
177.1
48.75
Year ending March 31, 2018392,500
9.1 31,500(9.5)
29,10025.6
18,00058.6
108.33

Note: Revisions to the forecast of consolidated financial results in the current quarter: No

*Notes(1) Change in Significant Subsidiaries during the Current Period: No(Change in specified subsidiaries caused a change in the scope of consolidation)
Additional: 0Removal: 0(2) Adoption of Accounting Treatments Simplified or Unique for Preparation: No(3) Change in Accounting Policies and Accounting Estimate and Restatement[1] Changes in accounting policies by a newly issued accounting pronouncement: No[2] Changes other than [1]: No[3] Change in accounting estimate: No[4] Restatement: No(4) Issued Shares (Common stock)[1] Number of issued shares at the end of the period (including treasury stock):
3 months ended June 30, 2017: 171,459,479 sharesYear ended March 31, 2017:

171,459,479 sharesYear ended March 31, 2017:

5,300,071 shares[2] Number of treasury stock at the end of the period:
3 months ended June 30, 2017:

5,258,111 shares[3] Average number of shares during the period:
3 months ended June 30, 2017: 166,173,181 shares

3 months ended June 30, 2016: 169,810,816 shares

Note: Number of the treasury stocks as of June 30, 2017 included 417,800 shares, and as of March 31, 2017 included
460,000 shares owned by Trust and Custody Service Bank, Ltd (Trust Account E).

*This quarterly summary report is exempt from quarterly review procedure based on the Financial Instruments
and Exchanges Act.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes
The projection figures shown above are based on information that was available at the time of preparation and may
contain certain uncertainties. Actual performance and other factors may differ from these projections due tochanges in circumstances and other developments. More information concerning these forecasts can be found in P.4“1. Qualitative Information for the Three-Months Period Ended June 30, 2017 (3) Commentary on Forward-Looking
Statements Including Forecast of Consolidated Financial Results” in the attachment.

Table of Contents

1.

2.

Qualitative Information for the Three-Months Period ended June 30, 20172(1) Commentary on Business Results

2(2) Analysis Concerning Financial Position

4(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results

4

Quarterly Consolidated Financial Statements and Major Notes

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income
and Quarterly Consolidated Statements of Comprehensive Income(3) Notes Regarding Quarterly Consolidated Financial Statements

79(Notes Regarding Going Concern)

9(Notes Regarding Significant Changes in the Amount of Shareholders’ Equity)

9(Segment Information)

9

-1-

1.

Qualitative Information for the Three-Months Period ended June 30, 2017

(1) Commentary on Business Results

The Japanese economy, during the first quarter of the consolidated cumulative period, saw a continuation of thegradual economic recovery as corporate earnings remained steady. While the global economy gradually recovered
overall, the sense of uncertainty about the future deepened due to concerns over political trends in the United States andEurope, a slowdown in China and other developing economies, in addition to rising geopolitical risks around the globe.
Even under these circumstances, the Nipro Group has made efforts to increase sales and cut production costs, andworked to improve business performance with the goal of realizing user wishes as soon as possible.
As a result, sales for the first quarter of the consolidated cumulative period increased YoY by 5.0% from the same
period of the previous year to 93,552 million yen. As for profit, operating income decreased by 33.6% YoY to 6,148 million
yen due to an increase in the cost of sales and other factors. Ordinary income rose 185.6% YoY to 6,241 million yen due
to a decrease in exchange losses and other factors. Additionally, the first quarter profit attributable to owners of parent
increased YoY by 1,885.4% to 4,242 million yen due to a decrease in corporate tax.
The overview of the results for the first quarter of the consolidated cumulative period by business segment is asfollows.

(i)

Medical-Related BusinessIn the Medical Sales Division, domestic sales of the Medical Sales Division remained solid in each category of

injection-transfusion products, enteral-alimentation products, testing products, dialysis products, and cardiovascular
products and cardiac surgery (CVS) products. Sales growth was particularly high for HDF filters (dialysis products),
followed by drug eluting balloon catheter “SeQuent® Please” (cardiovascular products), and "SafeTouch® infusion
system" (injection-transfusion products). The Pharmaceutical Sales Division, utilizing measures that promote genericdrug usage, worked to further expand the market. Accordingly, sales were steady due to increased selection of existingproducts and increased sales of June 2017 addenda listing items. Through focusing on strengthening the CNS (central
nervous system) field in particular from last year, we have worked towards further increasing our market share inaddenda listing items. However, advance sales of authorized generic drugs (AG) and dozens of manufactures vying oversingle items have seen increasingly intense competition in the domestic market. Accordingly, we have continued toenhance our sales promotion activities aimed at dispensing pharmacies and DPC hospitals while, through further
collaborations with pharmaceutical wholesalers, have worked to increase our market share in oral and external use drugs,
as well as striving to provide even greater information on injectable drugs.
Meanwhile, in addition to expanded sales of mainstay dialysis products, such as dialyzers, and hospital products,
overseas sales revenues significantly improved year on year, in part due to the depreciation of the yen. During this fiscal
year, through the establishment of a new office and participation in public tenders, we will increase our presence in
Cameroon and work towards expanding sales in Africa. Additionally, in India, a particular focus of ours, ourlocally-oriented and finely-tuned services that utilize the sales and service network of a total of 16 offices establishedacross the entire country have been praised, and we have steadily acquired government tenders (PPP) for dialysis
related products. We will continue to actively strengthen overseas sales networks and bolster direct sales, working toenhance customer satisfaction to expand sales by quickly responding to front-line needs.
For our new overseas manufacturing facilities (India, Indonesia, Bangladesh and Hefei/China), dialyzer productionlines were expanded in our factories in India and Hefei/China, and in our factory in Indonesia we worked to increase theproduction of syringes and blood tubing sets. In addition, in March 2017 we obtained approval to establish a new medical
device manufacturing facility on the outskirts of Ho Chi Minh City in Vietnam.
As a result, net sales of this business increased 6.6% YoY to 69,337 million yen.

-2-

(ii)

Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business, we have worked toward providing a diverse and detailed wide array ofcontract services. In addition to the existing comprehensive contract manufacturing of oral, injection and external use drug
formulations, we have endeavored to provide contract development services from the formulation design stage of suchformulations, and in particular the contract development for injection drugs that leverages our strength in being able todevelop and supply packaging such as vials, syringes and bags. Furthermore, we provided support for lifecycle
management that aims to enhance added value and differentiate products. Moreover, net sales were robust as a result of
our focus on expanding contract manufacturing for dedicated biopharmaceutical lines and lines at manufacturing plants forhighly physiologically active pharmaceuticals, and further increased production volumes at overseas production facilities.
Sales of pharmaceutical containers and devices for the preparation and administration of pharmaceuticals werefavorable as we provided containers and administration systems suitable to each pharmaceutical product throughself-development or joint development with pharmaceutical manufacturers, answering the diverse needs of the medical
community for small-volume bags, pre-filled syringes (plastic and glass), etc., in addition to rubber stoppers for vaccine
use and containers for kit products.
Furthermore, under the government’s policy to reduce medical expenses, we have worked with pharmaceuticalmanufacturers in Japan and abroad on the comprehensive lifecycle management of pharmaceutical products, taking into
consideration future combination products (collaborations with our own pharmaceutical products and medical devices),the systemization of self-injection, and changes to formulations and routes of administration.
As a result, net sales of this business increased 10.3% from the previous year to 17,742 million yen.

(iii) PharmaPackaging BusinessIn the PharmaPackaging Business, in addition to our existing products, we have developed our academic technicalsales activities, such as participating in academic conferences, towards capturing the needs of our globalizing customers
and new demand. In addition, we have promoted new products and technology development in Japan and abroad that
respond to the needs for continuously high-quality injectable formulations and filling processes.
In the domestic market, while sales of thermos bottles, pre-filled syringes (D-PFS) steadily increased, sales of tube
glass temporarily slowed down as a result of impacts from overseas markets and production adjustments. From thecurrent quarter period under review, the Business Development Department began in earnest. The Division is responsible
for enhancing profitability and increasing market share through improved brand value while enhancing productcompetitiveness by the planning, design, development and commercialization of products that reflect the needs of ourcustomers, and has worked to attract new customers and strengthen sales. For vials and prefilled syringes, we arefocusing on the sales of competitive products by collaborating with the Pharmaceutical-Related Business. At the Biwako
Plant, while we continued to exhaustively improve the quality and optimize the manufacturing environment by proceedingwith the introduction of new equipment, aiming to ship products from our medical rubber stoppers plant in fiscal 2019(fiscal year ending March 31, 2019) we are steadily carrying out product and equipment validations in order to contributeto increasing sales.
Looking at the overseas department, along with a recovery in the Chinese market, ampoules and vials were favorable,
and sales grew YoY. Meanwhile, in the United States and Europe, we faced difficulties from the second half of last year as
pharmaceutical companies reduced inventories due to the sense of uncertainty about the future resulting from last year's
decision by the United Kingdom to exit the EU and the presidential election in the United States. However, we expect arecovery to proceed towards the second half of this fiscal year. As for profit, due to the automating of the manufacturing
process and improving of production efficiency at each plant, the impact on profit by the decrease in sales was
supplemented and profitability was maintained YoY.

-3-

As a comprehensive manufacturer of pharmaceutical packaging materials, the PharmaPackaging Business Division willcontinue to strive to expand business by developing and introducing advanced products to the market that meet medical
needs of countries all over the world.
As a result, net sales of this business decreased 19.0% YoY to 6,465 million yen.

(iv) Other BusinessAmong other business, net sales from the real-estate rental business, etc. were 7 million yen (down 8.6% YoY).

(2) Analysis Concerning Financial Position
Assets, liabilities, and net assets
Total assets increased 10,112 million yen from the end of the previous consolidated fiscal year to 762,951 million yen at
the end of the first quarter under review. Current assets decreased 5,060 million yen and noncurrent assets increased
15,173 million yen. The main reason for the decrease in current assets was a decrease of 6,186 million yen in cash anddeposits, and the main reason for the increase in noncurrent assets was an increase of 11,072 million yen in investment
securities.
Total liabilities increased 3,360 million yen from the end of the previous consolidated fiscal year to 579,792 million yen.
Current liabilities increased 8,935 million yen and noncurrent liabilities decreased 5,574 million yen. The main reason for
the increase in current liabilities was an increase of 7,321 million yen in short-term loans payable, and the main reason forthe decrease in noncurrent liabilities was an 8,258 million yen decrease in long-term loans payable.
Total net assets increased 6,751 million yen from the end of the previous consolidated fiscal year to 183,159 million yen.
Shareholders' equity increased 674 million yen and accumulated other comprehensive income increased 6,060 million
yen. As a result, equity ratio increased by 0.6% from the end of the previous year to 22.7%.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
At this moment, we have not made any revision to the forecast of consolidated financial results for the six-month period
ending September 30, 2017 and the year ending March 31, 2018, which was announced on May 11, 2017.

-4-

2. Quarterly Consolidated Financial Statements and Major Notes(1) [Quarterly Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2017
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

- 5 -

As of
June 30, 2017

123,188
121,038
78,241
10,78426,303
6,404
22,194(1,378)386,775

117,001
122,21578,803
12,144
27,4106,886
18,641(1,388)
381,714

199,471(90,929)
108,541
236,514(164,778)
71,73623,9873,855(2,642)
1,212
25,95350,232(37,441)
12,791
244,222201,239(92,529)
108,709240,057(166,755)
73,301
24,5403,590(2,439)1,151
29,00150,719(37,940)
12,779249,484

27,996
2,263
13,57543,83627,1102,233
13,45742,802

68,888227
1,459
11,651(4,221)78,004
366,063
752,839

79,960－1,799
11,468(4,279)88,949381,236
762,951

(Millions of yen)
As ofMarch 31, 2017
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued directors' bonuses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
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
Net defined benefit liability
Provision for directors' retirement benefits
Provision for loss on litigation
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

- 6 -

As of
June 30, 201757,587
117,933
10,00015,1601,107
13,509
343
4,304
4,075
105
10,35017,313
251,792

57,618125,254
10,00015,030
1,120
12,980
－
1,933
4,505
209
8,083
23,991
260,727

5,215

5,200

25,00025,000281,181
2,869
1,766
5,126
592
88
2,797
324,639
576,431272,923
2,743
4,854
4,836
609
93
2,803
319,064
579,792

84,39778,422(6,243)
156,577

84,39779,059(6,205)
157,251

1,589
(141)
8,640
(582)
9,504
10,325
176,408
752,839

9,287
(106)
6,886
(501)
15,565
10,341
183,159
762,951

(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income]Quarterly Consolidated Statements of Income(Millions of yen)Three months ended
June 30, 2016
(From April 1, 2016
to June 30, 2016)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
State subsidy
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Compensation expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -Three months ended
June 30, 2017
(From April 1, 2017
to June 30, 2017)89,124
58,83230,292
21,034
9,257

93,552
63,14930,402
24,253
6,148

121
194
－
－
9
416
741

159
233
392
25
7
349
1,167

970
6,023
820
7,814
2,185

873
－
200
1,074
6,241

36
7
0
44

16
14
0
31

65
－
71
137
2,091
892
918
1,811
280
66
213

62
928
424
1,415
4,858
1,690
(1,276)
413
4,444
202
4,242

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)Three months ended
June 30, 2016
(From April 1, 2016
to June 30, 2016)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income
attributable to owners of parent
Comprehensive income
attributable to non-controlling interests- 8 -Three months ended
June 30, 2017
(From April 1, 2017
to June 30, 2017)

280

4,444

(8,261)(1)(6,537)
10
－

7,698
34
(1,869)82(38)(14,790)(14,509)(14,128)

5,907
10,352
10,303(381)

49

(3) Notes Regarding Quarterly Consolidated Financial Statements(Notes Related to Going Concern)
N/A(Notes Regarding Significant Changes in the Amount of Shareholders’ Equity)
N/A(Segment Information)
Ⅰ
1.

Three months ended June 30, 2016 (From April 1, 2016 to June 30, 2016)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
Other(Note.1)

Adjustment(Note.2)

Quarterly
Consolidated
StatementsofIncome(Note.3)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

65,046

16,091

7,979

89,117

7

89,124－

89,124

376

2,442

－

2,818

161

2,979

(2,979)－65,422

18,533

7,979

91,935

169

92,104(2,979)89,124

7,696

3,559

(238)

11,01623

11,040(1,782)

9,257

Total

Total

Net sales(1)Sales to third
parties(2)Inter-segment
sales andtransfers

Total
Segment profit(loss)(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales byheadquarter.
2. Adjustment for the segment profit (loss) of (1,782) million yen includes realization of intercompany profits oninventories of 2,049 million yen and corporate cost of (3,831) million yen. Corporate cost primarily consists ofgeneral and administrative expenses and research and development cost which do not belong to the reporting
segment.
3. Segment profit (loss) is adjusted to the operating income on the quarterly consolidated statements of income.
2.

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

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Ⅱ
1.

Three months ended June 30, 2017 (From April 1, 2017 to June 30, 2017)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
Other(Note.1)

Adjustment(Note.2)

Quarterly
Consolidated
StatementsofIncome(Note.3)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

69,337

17,742

6,465

93,545

7

93,552－93,552

401

2,213

23

2,638

247

2,886

(2,886)－69,738

19,956

6,488

96,183254

96,438(2,886)

93,552

7,798

3,733

(626)

10,905

9

10,915(4,766)

6,148

Total

Total

Net sales(1)Sales to third
parties(2)Inter-segment
sales andtransfers

Total
Segment profit(loss)(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales byheadquarter.
2. Adjustment for the segment profit (loss) of (4,766) million yen includes realization of intercompany profits oninventories of 171 million yen and corporate cost of (4,938) million yen. Corporate cost primarily consists of generaland administrative expenses and research and development cost which do not belong to the reporting segment.
3. Segment profit (loss) is adjusted to the operating income on the quarterly consolidated statements of income.
2.

Information about Impairment Loss on Fixed Assets and Goodwill by Reportable Operating Segment
N/A- 10 -