Summary Report of Consolidated Financial Results
For the Six Months Period ended September 30, 2013
November 12, 2013stCompany name: NIPRO CORPORATION
TSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko Sano, President and Representative Director
Contact person: Akihiko Yamabe, Director and General Manager of Accounting Division
TEL: (06)6372-2331
Filling date of quarterly reporting: November 14, 2013
Payment date of cash dividends: December 9, 2013
Supplemental material on quarterly reporting: Yes
Presentation on quarterly results: Yes (for institutional investors and analysts)(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Six Months ended September 30, 2013 (From April 1, 2013 to September 30, 2013)(1) Consolidated Results of Operations(Note: % of change from the same period a year ago)
Net Sales
Operating Income
Ordinary Income
Net Income
6 months ended September 30, 2013
6 months ended September 30, 2012
Note: Comprehensive income
million yen (-%)

Millions of yen%

Millions of yen

143,407
117,280

22.3
14.5

5,797
6,303

%

(8.0)
(22.8)

6 months ended September 30, 2013: 26,025 million yen (-%)

6 months ended September 30, 2013
6 months ended September 30, 2012

Earnings per share
Yen
15.99
38.75

Millions of yen%

Millions of yen

5,787
4,845

19.5
(5.4)

2,619
6,608

%

(60.4)－

6 months ended September 30, 2012: (5,404)

Diluted Earnings per share
Yen
14.38
34.95

(2) Consolidated Financial Position
Total Assets
Millions of yen
602,107579,302

Net Assets
Millions of yen
135,230
128,763

6 months ended September 30, 2013
Year ended March 31, 2013
Note: Equity 6 months ended September 30, 2013: 125,274 million yen

2.

Equity Ratio
%
20.8
20.7

Year ended March 31, 2013: 119,973 million yen

Dividends

Year ended March 31, 2013
Year ending March 31, 2014
Year ending March 31, 2014
(Forecast)First-quarter
Yen-

Annual Dividends per Year
Year-end Dividends
Second-quarter
Third-quarter
Yen
Yen
Yen
12.00
15.50
16.00
-

16.00

Annual Dividends

Yen
27.50
32.00

Note: Revisions to the forecast of cash dividends in the current quarter: Yes
3. Forecast of Consolidated Financial Results for the Year ending March 31, 2014 (From April 1, 2013 to March 31, 2014)(Note: The % displays in the line of year ending March 31, 2014 show increase/decrease ratio against the year ended March
31, 2013)
OperatingEarnings
Net Sales
Ordinary Income
Net Income
Incomeper Share
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
Year ending March 31, 2014
295,000 22.4
15,60037.2
14,000(2.5)
6,300(38.4)
38.45
Note: Revisions to the forecast of consolidated financial results in the current quarter: Yes

*Notes(1) Change in Significant Subsidiaries during the Current Period(Change in specified subsidiaries caused a change in the scope of consolidation): No
Additional: 0Removal: 0(2) Adoption of Accounting Treatments Simplified or Unique for Preparation: No(3) Change in Accounting Policies and Accounting Estimate and Restatement[1] Changes in accounting policies by a newly issued accounting pronouncement[2] Changes other than [1][3] Change in accounting estimate[4] Restatement

: No
: No
: No
: No

(4) Issued Shares (Common stock)[1] Number of issued shares at end of the period (including treasury stock):
6 months ended September 30, 2013
: 171,459,479 sharesYear ended March 31, 2013
: 171,459,479 shares[2] Number of treasury stock at end of the period:
6 months ended September 30, 2013
: 20,742,547 sharesYear ended March 31, 2013:
914,107 shares[3] Average number of shares during the period:
6 months ended September 30, 2013
: 163,829,523 shares
6 months ended September 30, 2012
: 170,545,858 shares*Information regarding the quarterly review procedure
This quarterly summary report is exempt from quarterly review procedure based on the Financial Instruments
and Exchanges Act. It is under the review procedure process at the time of disclosure of this report.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes
The projection figures shown above are based on information that was available at the time of preparation and may
contain certain uncertainties. Actual performance and other factors may differ from these projections due tochanges in circumstances and other developments. More information concerning these forecasts can be found in P.4“1. Qualitative Information for the Six-Month Period Ended September 30, 2013, (3) Commentary on
Forward-Looking Statements Including Forecast of Consolidated Financial Results” in the attachment.

Table of Contents

1.

2.

3.

Qualitative Information for the Six-Months Period ended September 30, 20132(1) Commentary on Business Results

2(2) Analysis Concerning Financial Position

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

4

Summary (Other) Information

4(1) Changes in Significant Consolidated Subsidiaries

4(2) Accounting Treatments Simplified or Unique for Preparation

4(3) Changes in Accounting Policies and Accounting Estimate and Restatement

4

Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income andQuarterly Consolidated Statements of Comprehensive Income

7

Quarterly Consolidated Statements of Income

7

Quarterly Consolidated Statements of Comprehensive Income7(3) Quarterly Consolidated Statement of Cash Flow8(4)

Notes Regarding Consolidated Financial Statement

10

Notes regarding going concern

10Notes regarding significant changes in the amount of shareholders’ equity

10

Segment Information

10

-1-

1. Qualitative Information for the Six-Month Period Ended September 30, 2013
(1) Commentary on Business Results
During the current quarter period under review, the global economy generally remained in an unclear situation in which
the depressed market is still ongoing though the credit uneasiness is soothed in Europe and the timing of tapering of themonetary easing is a concern while individual consumption is steadily increasing to recover the American economy.
The Japanese economy, on the other hand, has been back on the recovery path with consumer spending remaining
solid backed by correcting the yen appreciation and rising stock prices thanks to the policy effect such as monetary easing
and economic policy. The overall management environment, however, remained in a harsh condition concerning theincrease of consumption tax and boost in price of imported materials.
Under such circumstances, the Nipro Group has worked to improve operating results through its continued efforts to
expand sales and reduce costs.
As a result, consolidated sales for the six-month period ended September 30, 2013 increased by 22.3% from the same
period of the previous year to 143,407 million yen. As for the profit, consolidated operating income decreased by 8.0%
from the same period of the previous year to 5,797 million yen due to an increase in selling, general and administrative
expenses. Consolidated ordinary income, however, increased by 19.5% from the same period of the previous year to
5,787 million yen thanks to the foreign exchange gains and other factors, and consolidated net income decreased by
60.4% from the same period of the previous year to 2,619 million yen due to a decrease in extraordinary income.
The overview of the results for the current quarter period under review by business segment is as follows.
Effective from the first quarter period ended June 30, 2013, the pharmaceutical product sales unit of Nipro Pharma
Corporation has been integrated into the Company’s Domestic Division. In accordance with this change, the sales unit of
Nipro Pharma Corporation, which had previously been categorized into the Pharmaceutical-Related segment, isreclassified to the Medical-Related segment. The year-on year comparison, however, is not available for the current
quarter period under review, because it is difficult to compare between figures for the segments before and after thereclassification.

(i)

Medical-Related BusinessLooking at the domestic market, sales and profits for the Medical Sales Division from the “HeartMate II (implantableventricular assisting device),” launched in April, and the existing cardiovascular (CVS)-related products such as“extracorporeal ventricular assist devices” increased significantly. Sales of dialysis machine also grew greatly thanks toprevalence of on-line HDF treatment.
In addition, sales were also strong in the fields such as dialysis products, dialysis pharmaceuticals, injection-transfusion
products, enteral-alimentation products, testing products and vascular products.
Overseas sales, on the other hand, were robust because export profitability improved significantly thanks to thedepreciation of the yen against the US dollar and Euro during the year. In addition, sales increased significantly from thesame period of the previous year owing to our continued active efforts to enhance and expand our sales network.
By product, we have enhanced the sales of dialysis product, and consequently, sales of the related products such as
artificial kidney (dialyzers), dialysis machines, blood tubing and indwelling needles showed a strong increase. New
overseas plants, in India, Indonesia and Bangladesh, showed steady increase in sales with stable production. At the Hefei
plant in China, preparations for starting operation have progressed smoothly.
In the current fiscal year as well, we continue to strive for expanding our brand share, while promoting community-based
sales activities.
As a result, net sales of this business were 116,716 million yen.

(ii)

Pharmaceutical-Related Business

The Pharmaceutical-Related Business is roughly classified into two divisions: the Generic Drugs Division, providing
stable supply of high quality and low cost drugs, and the Contracted Manufacturing Division, offering high value-added
products to meet customer needs for various types of drugs.

-2-The market for the Generic Drugs Division is expected to expand further due in part to a government policy to promote
generic drugs; manufactures of original drugs running sideline businesses and foreign generic manufactures haveemerged, making the competitive environment of the domestic market severer.
Under such circumstances, we have worked to expand our market shares of drugs for oral or external use throughcooperation with drug wholesalers and our medical device division, while strengthening the sales promotion to prescribing
hospitals and dispensing pharmacies. In the market for large hospitals, at the same time, we have enhanced information
provision activities of products such as injections. As a result, sales of this division increased steadily.
The Contracted Manufacturing Division, on the other hand, have promoted diligent marketing activities throughproviding various services such as contracted development and support for value adding initiatives, in addition topromoting conventional contracted manufacturing. During the current quarter period under review, sales of this division
increased from the same period of the previous year because we started shipping biopharmaceuticals and major genericdrugs. Furthermore, we have worked to expand contracted manufacturing through joint development with generic drug
sales division and new drug development division of domestic and foreign major pharmaceutical manufactures.
Sales of pharmaceutical containers, medical-preparation- and administration-related devices were strong because wehave made efforts to provide containers and systems suitable for each pharmaceutical product, focusing on various needs
arising from the medical front, such as small volume bags for antimicrobial agents or osteoporosis drugs, materials forpre-filled syringes, etc., on top of rubber stoppers for pharmaceutical and vaccine use and containers for kit products.
These containers and systems were developed by the Group or through joint development with pharmaceuticalmanufactures based on our original processing technologies for plastics, rubbers, and metals. Furthermore, under thegovernment’s policy to curb medical expenses, we have continued to work together with domestic and foreign
pharmaceutical manufactures in enhancing comprehensive lifecycle management of pharmaceutical products, focusing
on the development of combination products, self-injection systems, and dosage form modification in the future.
As a result, net sales of this business were 24,259 million yen.

(iii) Glass-Related Business
Sales of tube glass for ampoules showed fine growth compared to the same period of the previous year thanks to anincrease in one-off orders from domestic glass-processing companies enjoyed during the current quarter period underreview, although downward trend in domestic demand continued. Sales of tube glass for vials also increased from thesame period of the previous year because sales in the domestic market grew steadily thanks to an increase in orders forvials for vaccines.
Among other glass-related products, sales of thermos bottles decreased from the same period of the previous year due
to a decline in export and weak domestic demand. Regarding glass for lighting purpose, demand for automotive electric
lamp products increased on the back of strong trends in the auto industry, sales of tube glass for lamp increased
compared to the same period of the previous year. Thus, although sales of tube glass for electric lamps decreased slightly
from the same period of the previous year, overall sales of glass for lighting purpose increased from the same period of
the previous year.
As a result, net sales of this business were 2,314 million yen.

(iv) Other BusinessAmong other business, sales from the real-estate rental business were 117 million yen.

(2) Analysis Concerning Financial Position[1] Analysis Concerning the Conditions of Assets, Liabilities and Net Assets
Total assets increased by 22,805 million yen from the end of the previous year to 602,107 million yen. Current assets
decreased by 9,496 million yen primarily due to a decrease of 24,777 million yen in cash and deposits, and noncurrent
assets increased by 32,302 million yen primarily due to an increase of 17,008 million yen in investment securities.
Total liabilities increased by 16,338 million yen from the end of the previous year to 466,877 million yen. Current-3-liabilities increased by 28,324 million yen primarily due to an increase of 22,601 million yen in short-term loans payable,
and noncurrent liabilities decreased by 11,986 million yen primarily due to a decrease of 8,086 million yen in long-termloans payable.
Total net assets increased by 6,466 million yen from the end of the previous year to 135,230 million yen. Shareholders’equity decreased by 17,166 million yen primarily due to purchase of treasury stock and accumulated other comprehensive
income increased by 22,467 million yen.
[2] Condition of cash flow
The ending balance of cash and cash equivalents in the period under review decreased 27,682 million yen from theprevious year to 64,940 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities was 6,449 million yen. The main accounts of cash inflow were income before
income taxes and minority interests, 6,829 million yen and depreciation and amortization, 11,948 million yen. The main
accounts of cash outflow were the decrease of trade notes and accounts receivable, 3,054 million yen and payment ofcorporate income tax, 4,177 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 25,883 million yen. The main accounts of cash outflow were purchase ofnoncurrent assets, 14,662 million yen.
(Cash flows from financing activities)
Net cash used in financing activities was 12,050 million yen. The main account of cash inflow was net increase in
short-term loans payable, 16,721 million yen and proceeds from long-term loans payable, 19,125 million yen. The main
account of cash outflow was repayment of long-term loans payable, 26,952 million yen and increase of treasury stock,
17,196 million yen.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
Concerning the global economy in the future, downside risk to the business activities still remain because of prolonged
bad-loan problem in Europe and economic turmoil by tapering of quantitative easing in US. As to the Japanese economy,
an increase in resource prices including those of crude oils is of concern, and companies are taking a cautious stancetoward an increase in personnel costs. Thus, the overall management environment is expected to remain in a harshcondition.
Even under such circumstances, the Nipro Group will work to improve profits through its continued efforts to expand
sales and reduce production costs.
At this moment, we have revised the forecast of consolidated financial results for the year ending March 31, 2014, which
was announced on August 12, 2013, based on the current movement in performance.

2. Summary (Other) Information(1) Changes in Significant Consolidated Subsidiaries
N/A(2) Accounting Treatments Simplified or Unique for Preparation
N/A(3) Changes in Accounting Policies and Accounting Estimate and Restatement
N/A

-4-

3. Consolidated Financial Statements(1) [ Quarterly Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2013
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Bulidings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation and impairment loss
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-5-

As of
September 30, 2013

106,000
83,66553,89910,48017,275
5,375
11,741(463)
287,974

81,222
92,08256,134
11,047
18,938
5,675
13,898(522)
278,477

138,547(69,911)
68,636
170,522(117,991)
52,53022,1733,203(2,029)1,174
23,78633,113(26,712)6,400
174,702

153,227(74,199)
79,028180,149(127,343)
52,80522,863
2,339(1,294)
1,045
21,35835,522(28,043)
7,478
184,580

22,740567
10,95834,26529,306
530
12,29042,127

63,141
8,805
13,767(3,353)82,360291,328
579,30280,1495,124
14,917(3,268)96,923
323,630
602,107

(Millions of yen)
As ofMarch 31, 2013
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
Provision for loss on business liquidation
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

-6-

As of
September 30, 201340,878127,238
10,000
1,277
1,011
8,286
316
4,266
2,810
70
1,954
3,734
11,912
213,758

42,801
149,839
10,000
4,256
1,002
7,258
－
5,363
3,085
171
1,954
1,787
14,561
242,082

47,14743,58014,90014,895

164,906
2,040
2,212
2,854
742
218
1,757
236,780
450,539

156,819
1,680
2,293
3,142
410
218
1,754
224,794
466,877

84,397636
54,788(865)
138,957

84,397635
54,714(17,957)
121,790(12,547)(6,436)(18,983)
8,789
128,763579,302(3,139)
6,623
3,483
9,955
135,230
602,107(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement of Comprehensive Income]Quarterly Consolidated Statements of Income(Amount: million yen)
FY2012 first three months(From April 1, 2012
to September 30, 2012)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
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 sales of investment securities
Compensation income
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Company funeral expenses
Loss on reduction of noncurrent assets
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

FY2013 first three months(From April 1, 2013
to September 30, 2013)

117,280
84,86632,414
26,111
6,303

143,407
101,691
41,71535,918
5,797

429
861
－
454
1,745

415
942
589
668
2,615

1,712
1,253
38
199
3,203
4,845

1,988
－
－
636
2,625
5,787

30
40
4,159
－
83
4,313

203
544
18
735
305
1,807

65
27
40
29
17
181
8,976
2,209
13
2,223
6,753
145
6,608

32
10
－
530
191
765
6,829
5,324
(1,222)
4,102
2,727
107
2,619

Qarterly Consolidated Statements of Comprehensive Income(Amount: million yen)
FY2012 first three months(From April 1, 2012
to September 30, 2012)
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 owners of the parent
Comprehensive income attributable to minority interests-7-

FY2013 first three months(From April 1, 2013
to September 30, 2013)

6,753

2,727

(11,351)(806)(12,158)(5,404)(5,477)72

9,407
13,891
23,29826,02525,086938

(3) [ Quarterly Consolidated Statements of Cash Flows]

FY2012 first three months(From April 1, 2012
to September 30, 2012)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
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)
Loss (gain) on sales of investment securities
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 (use 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
Payments for sales of investments
in subsidiaries resulting in change in scope of consolidation
Payments for investments in capital
Purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Payments for retirement of noncurrent assets
Proceeds from capital investment subsidies received
Net decrease (increase) in short-term loans receivable
Payments of loans receivableCollection of loans receivable
Other payments
Other proceeds
Net cash provided by (use in) investment activities-8-(Amount: million yen)
FY2013 first three months(From April 1, 2013
to September 30, 2013)

8,976
9,874
1
1,408
38
54
(1,290)1,712
370(4,159)(5,590)(1,898)
1,379
958
(72)
20
11,784
1,044(1,706)101(221)(2,987)
8,015

6,829
11,94812,354－
38(1,357)
1,988(2,011)(18)(2,993)(439)(3,054)(117)(1,745)(64)
11,3581,284(2,020)439(435)(4,177)
6,449(11,094)
14,279(9,935)5,800(2,589)731(3,169)75(2,105)(5,612)(1,494)(15,441)
45
(13)
53
1,813
(680)
80
(0)
0
(18,694)(1,407)(14,662)
351
(1)
609
(138)
(114)
55
(13)
1
(25,883)

FY2012 first three months(From April 1, 2012
to September 30, 2012)
Net cash provided by (use in) financial activities
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from stock issuance to minority shareholders
Decrease (increase) in treasury stock
Repayments of finance lease obligations
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (use 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 paid
Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Cash and cash equivalents at end of period-9-(Amount: million yen)
FY2013 first three months(From April 1, 2013
to September 30, 2013)

8,672(10,000)
32,056(18,574)
－
241
(0)
(340)
(1,953)(11)
10,091(229)(816)
79,44916,721－
19,125(26,952)(588)
153(17,196)(663)(2,638)(10)(12,050)
3,782(27,702)
92,622923

1979,55664,940(4)Notes Regarding Consolidated Financial Statement(Notes regarding going concern)
N/A(Notes regarding significant changes in the amount of shareholders’ equity)
Acquisition and Tender Offer of Treasury Stocks
Based on the Board of Directors meeting dated May 14, 2013, the Company acquired treasury stocks, by meansof tender offer, pursuant to the provisions of Article 156, Paragraph 1 of the Companies Act (Law No. 86 of 2005, as
amended, “the Act”), applied by replacing certain terms provided pursuant to Article 165, Paragraph 3 of the Act,and the provisions of the Company’s Articles of Incorporation. The Company purchased 19,834 thousand shares oftreasury stock (total acquisition value is 17,096 million yen) on July 4, 2013. As a result, treasury stock in the current
quarter period under review is 17,957 million yen (total number of share is 20,742 thousand shares).

(Segment Information)Ⅰ

FY2012 (From April 1, 2012 to September 30, 2012)

1.

Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalRelated

PharmaceuticalRelated

GlassRelated

Total

Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
Statements ofIncome(Note.3)

Net sales(1)Sales to third parties

82,60932,3132,240

117,163

116

117,280－

117,280(2)Inter-segment sales
and transfers

620

3,357

235

4,214

22

4,236

(4,236)－

Total

83,22935,671

2,476

121,377

139

121,517(4,236)117,280

Segment profit

7,094

2,387

307

9,789

110

9,899

(3,596)6,303(Notes)
1.
2.

3.
2.

“Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
Adjustment for the segment profit of (3,596) million yen includes elimination of inter-segment transaction of 154
million yen and corporate cost of (3,750) million yen. Corporate cost consisted primarily of general andadministrative expenses and research and development cost which do not belong to the reporting segment.
Segment profit is adjusted to the operating income on the consolidated statements of income.

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

Ⅱ

FY2013 (From April 1, 2013 to September 30, 2013)

1.

Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalRelated

PharmaceuticalRelated

GlassRelated

Total

Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
Statements ofIncome(Note.3)

Net sales(1)Sales to third parties

116,716

24,2592,314

143,289

117

143,407－

143,407(2)Inter-segment sales
and transfers

635

3,710

276

4,621

19

4,641

(4,641)－

Total

117,351

27,9692,590

147,911136

148,048(4,641)

143,407

Segment profit

7,891

3,798

259

11,949109

12,058(6,260)5,797(Notes)1.
2.

3.

“Other” is the business segment which is not included in the segment and consist of real estate income and sales
by headquarter.
Adjustment for the segment profit of (6,260) million yen includes elimination of inter-segment transaction of(1,215) million yen and corporate cost of (5,045) million yen. Corporate cost consisted primarily of general andadministrative expenses and research and development cost which do not belong to the reporting segment.
Segment profit is adjusted to the operating income on the consolidated statements of income.

2. Changes in Reportable Segments(1) Effective from the third quarter period ended December 31, 2012, the name of the following reportable businesssegment has been changed: from “Materials” to “Glass-Related.”
This arrangement only involves a change in the name of the business segment, and classification has not beenchanged from the second quarter period ended September 30, 2012. Reflecting this change, the segment
information for the second quarter period ended September 30, 2012 is presented using the revised name.
(2) Effective from the third quarter period ended December 31, 2012, we have partially changed our organization sothat we can strengthen the Pharmaceutical-Related Business further and facilitate close coordination between the
Medical-Related Business and the Glass-Related Business. In accordance with this change, a part of businessdivisions, which had previously been categorized into the Glass-Related segment, has been reclassified to thePharmaceutical-Related segment.
The segment information for the second quarter period ended September 30, 2012 is prepared based on thereportable segments after the reclassification.
(3) Effective from the first quarter period ended June 30,2013, the pharmaceutical product sales unit of Nipro Pharma
Corporation has been integrated into the Company’s Domestic Division so that we can enhance our management
capability through close coordination between the three divisions: the Medical Devices Division, thePharmaceutical Products Division, and the Glass and Materials Division. In accordance with this change, the sales
unit, which had previously been categorized into the Pharmaceutical-Related segment, is reclassified to theMedical-Related segment.
The segment information for the second quarter period ended September 30, 2012 after reclassification, except
for sales to external customers, is not available to the public, because accurately and retrospectively extracting
data for cost of sales and selling, general and administrative expenses is practically difficult. In addition, thesegment information for the current quarter period under review based on the segments before the reclassification
is not available to the public either, because it is practically difficult to obtain necessary information to prepare it.
Sales to the external customers for the second quarter period ended September 30, 2012, if prepared based on
the segments before the reclassification, would have been 92,981 million yen for the Medical-Related segment
and 21,941 million yen for the Pharmaceutical-Related segment.
(4) Effective from the first quarter period ended June 30, 2013, Chengdu Pingyuan Nipro Pharmaceutical Packaging
Co., Ltd., Jilin Nipro Jiaheng Pharmaceutical Packing Co., Ltd. and Anyang Nipro Changda Pharmaceutical
Packaging Co., Ltd., which had previously been categorized into the Glass-Related segment, are reclassified to
the Medical-Related segment, as a result of review and re-examination as part of our international management
strategy.
The segment information for the second quarter period ended September 30, 2012 is prepared based on thereportable segment after the reclassification.

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3. Information on Impairment Loss on Fixed Assets and on Goodwill by Reportable Segment(Material Change in the Amount of Goodwill)In the Medical-Related segment, Nichihos Co., Ltd. and its 10 subsidiary companies have been included in the scope of
consolidation as a result of acquition of their shares. As a result, unamortized balance of goodwill increased 6,764 million
yen from the end of the previous period.

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