Summary Report of Consolidated Financial Results
For the Six Months Period ended September 30, 2008 (Year ending March 31, 2009)
November 11, 2008
Company name: NIPRO CORPORATION
Code No.8086
URL:
http://www.nipro.co.jp/

TSE/OSE–1st section

Representative:
Minoru Sano, President and Representative Director
Contact:
Akihiko Yamabe, Director, General Manager of Accounting & Corporate Planning Division
Scheduled date of quarterly annual report filing: November 14, 2008
TEL: (06) 6372-2331(Note: Amounts are truncated to one million yen)
1. Financial results for the six months ended September 30, 2008.(From April 1, 2008 to September 30, 2008)(1) Consolidated Results of Operations(Note: The % displays show increase/decrease ratio against the same period of the previous year.)
Net(Quarter)
Net Sales
Operating Income
Recurring Income
IncomeMillions of yen %Millions of yen %Millions of yen %Millions of yen %
3,402
6,937
6 months ended Sep. 30,2008
6,952
86,5753,328(17.1)
6,537 34.2
6 months ended Sep. 30,2007
7,432(25.1)
84,288 (15.9)
Earnings
per Share
6 months ended Sep. 30,2008
6 months ended Sep. 30,2007

Diluted Earnings
per Share

53.61 Yen
52.44

- Yen
-

Total Assets

Net Assets

Millions of yen
330,939
349,302

Millions of yen
111,961
119,544(2) Consolidated Financial Position

6 months ended Sep. 30,2008
Year ended March 31,2008(Notes) Shareholders’ equity

Net Assets
per Share

Equity Ratio
%

Yen

33.4
33.8

1,740.99
1,861.79

6 months ended Sep. 30, 2008 110,453 million yen, Year ended March 31, 2008 118,155 million yen

2. Dividends
Dividends per share(Basis date) End of 1st QuarteryenYear ended March 31,2008
Year ending March 31,2009
Year ending March 31,2009(Projection)-----

End of 2nd Quarter
yen
28.00
32.00
-----

End of 3rd Quarteryen---------

Year endyen
9.50----17.00

Year Total
yen
37.50
----49.00(Notes) Revision of projected total annual dividens: Yes

3. Projected Consolidated Financial Results for the Year ending March 31, 2009 (From April 1, 2008 to March 31, 2009)(Note: % shows increase/decrease ratio against March 31, 2008)

Operating
IncomeNet SalesYear ending March 31,2009

Recurring
IncomeEarnings
Per Share

Net Income

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

184,000

6.9

12,800 (6.4)

11,200

15.8

6,100

37.0

96.10

(Notes) Revision of projected conolidated financial results for the year ending March 31, 2009: None

4. Others(1) Change in significant subsidiaries during the period ended Sep. 30, 2008(Resulting in a change in scope of consolidation): None
(2) Adoption of accounting treatments simplified and unique for preparation of quarterly consolidated financial statements: Yes(Note) Further detail information can be found in page 4. [Qualitative information, financial reports and others] 5. Others(3) Change in policies and procedures for accounting treatment of preparation of quarterly consolidated financial reports (to be
stipulated in significant matters for preparation of quarterly consolidated financial reports): Yes[1] Change for revision of accounting standards: Yes[2] Change for other than [1]: Yes(Note) Further detail information can be found in page 4. [Qualitative information, financial reports and others] 5. Others(4) Issued shares (Common stock)[1] Number of issued shares at end of the period
6 months ended Sep. 30,2008
Year ended March 31, 2008
63,878,505 shares
63,878,505 shares[2] Number of treasury stock at end of the period
6 months ended Sep. 30,2008
Year ended March 31, 2008
435,516 shares
415,037 shares[3] Number of average shares during the period
6 months ended Sep. 30,2008
6 months ended Sep. 30,2007
63,479,014 shares
63,458,025 shares*Disclaimer for appropriate use of forecasted financial results, and other special notes
1. The projection figures shown above are based on information that was available at the time of preparation and, therefore, actual
performance and other factors may differ from these projections due to changes in circumstances and other developments. Moreinformation concerning these forecasts can be found on page 4. [Qualitative information, financial reports and others] 4. Qualitative
information on the projected consolidated financial results.
2. We have adopted “Accounting standards for quarterly financial reporting”(Accounting Standards Board of Japan(ASBJ), statement
No.12, issued on March 14, 2007) and “Implementation guidance of accounting standards for quarterly financial reporting”(ASBJ
guidance No.14, issued on March 14, 2007) ” from this consolidated accounting period as well as prepared the quarterly
consolidated financial reports in conformity with “Quarterly consolidated financial reporting regulation(Cabinet decree No.64 of year2007).
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[Qualitative information, financial statements and others]

1. Qualitative information on the consolidated results of operation
In the current second quarter period, the situation of world economy, including Asia, has decelerated by confusion offinancial market in the United States. Also in Japanese economy, as the price appreciation of oil and raw material and thecontinuation of strong yen rate and weak U.S. dollars rate have generally given worry about business recession mind, thebusiness circumstance around our group has still remained severe condition.
Under such situation, we have continuously promoted to develop innovative medical equipment in the fields of artificialorgans and regenerative medicines as well as reinforced injection drug and oral drug business to expand business
contents and to enhance revenues.
The overviews of the results by segment are as follows.
<Medical equipment division>
In the domestic business, prescription price and government-fixed reimbursement price for specific insured medical
materials were largely lowered by revision of medical treatment fees effective as of April this year. Thus, our businessenvironment remained very severe due to expansion of facilities having introduced the prescription system to reimburse
comprehensively for acute stage inpatient which is called as DPC (Diagnosis Procedure Combination) and rise of prices
such as raw material and freight.
Under such circumstances, we have promoted active market development, enhancing selling efficiency, enlarging line
up of main products to show a good growth in product categories as dialysis-related products, diabetes-related products
and injection-and-infusion-related products.
In the international business, we have enlarged selling entities and expanded the sales of dialysis-related-products suchas dialyzer, blood tubing set, new type safety arteriovenous fistula needles, diabetes-related-products and oxygenator toshow good growth in quantity, however, sluggish growth in amount affected by fluctuation of strong yen rate against weak
dollar.
As a result, net sales of this division increased 0.8% from the same period of the previous year to 54,603 million yen.
<Pharmaceutical division>
In the Pharmaceutical division, although the environment of market remained very severe due to the governmental
measures to suppress medicine costs by revision of the prescriptions prices and increase of facilities to introduce DPC
system and the intensive price competitions against products by competitors, our generic drugs with high quality andreasonable price showed a good growth thanks to governmental measures to promote sales of generic dugs which havefocused on our unique products such as powdered dialysate solution, kit product of substitution fluid for hemofiltration andhemodiafiltration, antibiotic agents by “liquid-and-powder” double-bag kits, pre-filled syringe kits and injectables inplastic-ampoules. Also we marked good results in the contract manufacturing business thanks to our own diverse
technology and production ability.
As a result, net sales of this division increased 8.7% from the same period of the previous year to 26,525 million yen.
<Glass & Materials division>
In the filed of glass for pharmaceutical purposes, sales of glass tubes for ampoule were sluggish due to decrease of
demands in the domestic market, however, sales of glass for tube bottle increased mainly in products for pharmaceuticals,
as well as products for laboratory and general use resulted in good order.
-2-

In the field of other glass & materials products, good sales in export of glass for vacuum bottle mainly to Middle East
area covered the drop of the domestic demand, however, sales of glass for lighting purpose largely decreased for
application to the requirements for cost reduction of backlight for Liquid Cristal Display panel and weak sales inflat-screen television market. The materials other than glass showed sluggish growth generally due to theunderperforming consumers trend, in spite of strenuous efforts in health-food-related products of Ashitaba(Angelica
keiskei), and so on.
As a result, net sales of this division decreased 5.3% from he same period of the previous year to 5,080 million yen.
<Other division>
Net sales of this division, consisting mainly of sales of machine for manufacture of medical equipment and real estate
rentals, increased 11.0% from the same period of the previous year to 366 million yen.

As a result, net sales for the six months ended September 30, 2008 was 86,575 million yen, increased by 2.7% from thesame period of the previous year. As for profits, operating income decreased 6.5% from the same period of the previous
year to 6,952 million yen due to the increase of selling, general and administrative expenses, while recurring income
increased 6.1% from the same period of the previous year to 6,937 million yen due to the increase of non-operating
income such as foreign exchange gain, and net quarter income increased 2.2% from the same period of the previous
year to 3,402 million yen.
Please note that we disclosed the information of comparison with the same period of the previous year in qualitative
information as a reference.

2. Qualitative information on the consolidated financial position
Total assets at end of September 30, 2008 decreased 18,362 million yen to 330,939 million yen from end of the previous
period. Current assets decreased 5,920 million yen and fixed assets decreased 12,442 million yen from end of theprevious period. Current assets decreased mainly due to the decrease of 758 million yen in the cash on hand in banks
and fixed assets decreased mainly due to the decrease of 11,468 million yen in investment securities.
Total liabilities decreased 10,780 million yen to 218,978 million yen from end of the previous period. Current liabilities
decreased 4,616 million yen and fixed liabilities decreased 6,163 million yen from end of the previous period. Current
liabilities decreased mainly due to decrease of 7,010 million yen in current portion of bonds and fixed liabilities decreased
mainly due to decrease of bonds and deferred tax liabilities.
Net assets amounted to 111,961 million yen, where shareholders’ equity increased 2,845 million yen and valuation andtranslation difference decreased 10,547 million yen, from end of the previous period.

3. Qualitative information on the state of the consolidated cash flow
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 8,098 million yen. The main accounts of inflow were net income
before adjustment of taxes, 6,439 million yen, depreciation and amortization, 8,177 million yen and the main accounts ofoutflow were increase in trade receivables, 4,964 million yen, increase in inventories, 3,557 million yen.
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(Cash flow from investing activities)
Net cash used in investing activity amounted to 9,613 million yen. The main account of outflow was payments foracquisition of fixed assets, 11,907 million yen.
(Cash flow from financing activities)
Net cash used in financing activities amounted to 6,459 million yen. The main accounts of outflow were redemption ofbonds, 10,130 million yen and repayment of long-term borrowings, 7,431 million yen.

4. Qualitative information on the projected consolidated financial results
The world economy in future is still becoming more unpredictable as the business condition in the United Stated has
retreated and European economy is not expected for improvement of its economical deceleration. It, also in Japanese
economy, would make concern of decrease in corporate revenues by high raw material prices and strong yen rate, andescalation of further competitions among enterprises, where very severe business circumstance are to be prospective.
We, however, continuously endeavor to enlarge our selling foundation and promote active business expansion as well as
to enhance our business performance more by providing high quality and reasonable price products.
Thus, we will not change the figures of the projected consolidated financial results for the year ending March 31, 2009
(From

April 1, 2008 to March 31, 2009) announced on May 19, 2008, focusing on continuous business expansion andstrengthening of foundation.

5. Others(1) Change in significant subsidiaries during six months ended September 30, 2008(Resulting in a change in scope of
consolidation)
N/A(2) Adoption of accounting treatments simplified and unique for preparation of quarterly consolidated financial reports[1] Simplified accounting treatments
1) Calculation of estimated impairment for general receivables.
As it is accepted that there is no significant change between the actual rate or index of bad debts accrual calculated
at end of the current quarterly consolidated accounting period and at end of the previous consolidated accounting year,
the later rate or index was utilized for estimation of impairment of general receivables.
2) Deferred tax assets and liabilities
As it is accepted that there is no significant change in the situation of accrued temporally differences from the end of
the previous consolidated accounting year, same tax planning as used in the end of the previous consolidated
accounting year for judgment of collect ability of deferred tax assets was utilized.
[2] Unique accounting treatment for preparation of quarterly consolidated financial reports
N/A(3) Change in policies, procedures and presentation for accounting treatment of preparation of quarterly consolidated
financial reports[1] Adaptation of accounting standards for quarterly financial reporting
We have adopted the “Accounting standards for quarterly financial reporting” (Accounting Standards Board of Japan(hereafter called ASBJ), Statement No.12, issued on March 14, 2007) and the “Implementation guidance of accounting
standards for quarterly financial reporting” (ASBJ guidance No.14, issued on March 14, 2007)” from this consolidated
accounting period. We have prepared the quarterly consolidated financial reports in conformity with the “Quarterly
consolidated financial reporting regulation (Cabinet decree No.64 of year 2007).

-4-

[2] Application of accounting standards for measurement of inventories
We have adopted the “Accounting standards for measurement of inventories”(ASBJ, Statement No.9, issued on July 5,2006) from the current 1st quarter consolidated accounting period and the basis of measurement has been changed
from cost method to writing down method below cost to the net selling value for decreased profitability. As a result,gross profit, operating profit and recurring profit, increased 26 million yen and net income before adjustment of taxes
decreased 203 million yen, comparing with the computation by the previous method.
As for the affection to the segment information, please see the notes in the segment information.
[3] Application of practical solution on unification of accounting policies applied to foreign subsidiaries for consolidated
financial statements
We have adopted the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” (ASBJ Practical Issues Task Force No. 18) from the current 1st quarter
consolidated accounting period to make necessary adjustments on consolidation closing process. As a result, grossprofit increased 12 million yen, operating profit increased 1 million yen, recurring income decreased 25 million yen andnet income before adjustment of taxes decreased 76 million yen.
As for the affection to the segment information, please see the notes in the segment information.
[4] Application of accounting standard for lease transaction
We have adopted, in advance, the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13, issued onJune 7, 1993, ultimate revision on March 30, 2007) and the “Guidance on Accounting Standard for Lease Transactions”(ASBJ Guidance No.16, issued on January 18, 1994, ultimate revision on March 30, 2007) from the current 1st quarter
consolidated accounting period to change the treatment of finance lease transaction that does not transfer ownershipfrom the one similar to an ordinary rental transaction to the one similar to ordinary sale and purchase transaction, to be
an assets under finance lease.
As for the method of depreciation of the assets under finance lease, its useful lives are equals to the lease term andthe residual values are equal to zero.
However, we still have adopted the similar manner to an ordinary rental transaction for the finance lease transactions
that do not transfer ownership and the starting dates of the lease transactions were before 1st April 2008. No affection
against profit and loss will be given by the change.
(Additional information)
Change in useful life of tangible fixed assets
Nipro Corporation and its domestic subsidiary companies have changed the useful lives of machinery from the current
1st quarter consolidated accounting period according to the revision of the domestic corporate income tax law. As aresult, gross profit and operating profit decreased 701 million yen, recurring income and net income before adjustmentof taxes decreased 685 million yen, comparing with the computation by the previous useful lives.
As for the affection to the segment information, please see the notes in the segment information.

- 5 -5. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets at end of September 30, 2008
(Note: Amounts are truncated to one million yen)

As of
September 30, 2008

As ofMarch 31, 2008

Current Assets

156,826

162,746

Cash on hand and in banks

41,96049,469Trade notes and accounts receivable

54,30753,507

Mechandise and finished goods

35,714

34,120Work in process

6,289

4,810

Raw materials and supplies

9,041

9,146

Deferred tax assets

3,147

2,902

Other current assets

6,893

9,264

Allowance for doubtful accounts

(529)

(473)

Fixed Assets

174,113

186,555

Tangible fixed assets

118,566

118,811

Buildings and structures

44,84945,414

Machinery and vehicles

34,92437,780Land

19,45019,412

Construction in progress

14,674

11,220

Others

4,667

4,983

Intangible fixed assets

2,922

3,163

Goodwill

1,266

1,425

Others

1,655

1,737

Investments and other assets

52,62464,580Investment securities

48,45659,925Long-term loans receivable

224

223

Deferred tax assets

100

159

Lease deposits

4,363

4,466

Other assets

2,404

2,779

Allowance for doubtful accounts(2,925)(2,972)

Total Assets

330,939

349,302(ASSETS)- 6 -(Note: Amounts are truncated to one million yen)

As of
September 30, 2008

As ofMarch 31, 2008

(LIABILITIES)Current liabilities

104,218

108,835

Trade notes and accounts payable
Short-term borrowings
Current portion of bonds
Other payables
Accrued income taxes
Allowance for bonuses payable
Allowance for bonuses payablefor directors and corporate auditors
Allowance for loss on clearance of businessNotes payable for plant and equipment
Others29,80145,816
8,140
4,386
3,282
1,653
1

30,00843,23415,150
5,388
2,226
1,528
75

1,954
3,393
5,788

1,954
5,225
4,043

Fixed liabilities

114,760

120,923

Bonds

33,18014,00036,30014,000Long-term borrowings
Deferred tax liabilities
Accrued pension and severance costAccrued severance indemnityfor directors and corporate auditors
Allowance for loss on lawsuit
Other fixed liabilities

58,095
5,203
2,022
610

56,405
9,833
2,128
700

170
1,478

170
1,385

Total liabilities

218,978

229,758

Shareholders’ Equity

100,165

97,320CapitalCapital surplus
Earned surplus
Treasury stock

28,66329,97542,359(832)

28,66329,97539,476(794)

Valuation and translation differences

10,28820,835

Valuation differences of other securities
Foreign currency translation adjustments

12,102(1,814)

18,947(1,887)

Minority interests

1,507

1,388

Total Net Assets

111,961

119,544

Total Liabilities and Net Assets

330,939

349,302

Convertible bond type bonds
with stock acquisition rights(Net Assets)- 7 -(2) Quarterly Consolidated Statements of Income for the Six Months Period ended September 30, 2008 (Year ending
March 31, 2009)(Note: Amounts are truncated to one million yen)
Current Period(From April 1, 2008
To September 30, 2008)

Account

Net sales
Cost of goods sold86,57561,707Gross profit
Selling, general andadministrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Exchange gain
Equity in profit of affiliate
OthersNon-operating expenses
Interest expenses
Depreciation
Others

24,867
17,914

Recurring income
Extraordinary gains
Gain on sale of fixed assets
OthersExtraordinary losses
Loss on sale and disposal of fixed assets
Impairment loss on fixed assets
Abnormal manufacturing cost
Loss on devaluation of inventories
Others

6,937
317
269
48
816
65
130
135
229
254

Net(Quarter) income before
adjustment of taxes
Corporate, inhabitants andenterprise taxes
Adjustment for deferred taxes
Minority shareholders’ share in net
income of consolidated subsidiaries
Net(Quarter) income

6,439

6,952
1,342
229
392
385
18
315
1,357
1,133
174
49

- 8 -

3,072
(152)
116
3,402

(4) Quarterly Consolidated Statements of Cash Flow
(Note: Amounts are truncated to one million yen)
Current Period(From April 1, 2008
To September 30, 2008)
Cash flows from operating activities
Net income before adjustment for taxes
Depreciation and amortization
Impairment loss on fixed assets
Amortization of goodwill
Equity in loss(gain) of affiliate
Increase (decrease) in allowance for
doubtful accounts
Interest and dividend income
Interest expenses
Exchange loss (gain)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other non-operating income/expenses andextraordinary gains/losses
SubtotalInterest and dividends received
Interest paid
Other revenues
Other expenditures
Income taxes paid

6,439
8,177
130
174
(18)
35
(622)
1,133
285
(4,964)(3,557)
3,527
(283)
(84)
(216)
10,154601(1,277)185(61)(1,504)
8,098

Cash flows from operating activities
Cash flows from investing activities
Deposits in time deposits
Proceeds from matured time deposits
Payments for purchases of securities
Payments for acquisition of fixed assets
Proceeds from sales of fixed assets
Proceeds from governmental subsidies on investment to plant
Decrease(increase) in short-term lending
Collections of loans receivable
Revenues from other investments
Cash flows from investing activities(1,261)1,120(1)(11,907)
352
1,838
195
47
1
(9,613)

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

900
10,850(7,431)(10,130)
9
(37)
(19)
(600)
(0)
(6,459)Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the
beginning of the period
Increase in cash and cash equivalents due toinclusion of new subsidiary in consolidation
Balance of cash and cash equivalents at the end of the period

- 9 -

(460)
(8,435)47,656808
40,030We have adopted the “Accounting standards for quarterly financial reporting” (Accounting Standards Board of Japan(hereafter called ASBJ), Statement No.12, issued on March 14, 2007) and the “Implementation guidance of accounting
standards for quarterly financial reporting” (ASBJ guidance No.14, issued on March 14, 2007)” from this consolidated
accounting period. We have prepared the quarterly consolidated financial reports in conformity with the “Quarterly
consolidated financial reporting regulation (Cabinet decree No.64 of year 2007).
(4) Notes related to going concern
N/A(5) Segment information[1] Segment information by business category
Current period (From April 1, 2008 to September 30, 2008)(Note: Amounts are truncated to one million yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials

54,603

26,525

5,080

366

-

0

1,620

Total

54,603

26,525

Operating income(loss)

7,308

2,175

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

Eliminations/Corporate

Consolidated

86,575-86,57539

1,660(1,660)

-

6,700

406

88,235(1,660)86,575953

11

10,449(3,496)

6,952

Other

Total

(Notes) 1. Classification of business categories and main products in each business category
Business categories are classified based on the proximity in terms of purposes and manners of usage ofthe products in the market.
Main products belonging to each business categories are as follows:Business
category
MedicalEquipment

Main products and commodities
Dialyzers, blood tubing sets, injection needles, syringes, and infusion sets, etc

Glass &
Materials

Half-type and full-type kits, double-bag kits, pre-filled syringes, dialysate solution, andcirculatory drugs, etc.
Glass for pharmaceutical containers, glass for thermos bottles, glass for lighting
purposes, stoppers for plastic containers and rubber stoppers, etc.

Other

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

Pharmaceutical

2. As described in “Change in policies, procedures and presentation for accounting treatment of preparationof quarterly consolidated financial reports” [2], we have adopted the “Accounting standards formeasurement of inventories” from the current 1st quarter consolidated accounting period and the basis ofmeasurement has been changed from cost method to writing down method below cost to the net selling
value for decreased profitability. As a result, operating profit in “Medical Equipment” and “Pharmaceutical”
increased 1 million yen and 24 million yen respectively, comparing with the computation by the previous
method.
3. As described in “Change in policies, procedures and presentation for accounting treatment of preparationof quarterly consolidated financial reports” [3], we have adopted the “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” from thecurrent 1st quarter consolidated accounting period to make necessary adjustments on consolidation. As aresult, operating profit in “Medical Equipment” increased 1 million yen, comparing with the computation by
the previous method.

- 10 -

4. As described in “Change in policies, procedures and presentation for accounting treatment of preparationof quarterly consolidated financial reports” (Additional information), Nipro Corporation and its domestic
subsidiary companies have changed the useful lives of machinery from the current 1st quarter consolidated
accounting period according to the revision of corporate income tax law. As a result, operating profit in“Medical Equipment”, “Glass and Material”, “Others” and “Eliminations/Corporate” decreased 862 million
yen, 19 million yen, 0 million yen, and 0 million yen, respectively, while in “Pharmaceutical” increased 181
million yen, comparing with the computation by the previous useful lives.

[2] Segment information by geographical area
Current period (From April 1, 2008 to September 30, 2008)
Japan

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

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

Europe

Asia

Total

Eliminations
Consolidated/Corporate

68,100

8,746

5,976

3,751

86,575-86,575

15,423

483

1

7,186

23,094(23,094)-

Total

83,524

9,229

5,977

10,938109,669(23,094)

86,575

Operating income(loss)

10,652

(602)

(14)

571

10,607(3,654)

6,952(Notes) 1. As described in “Change in policies, procedures and presentation for accounting treatment of preparationof quarterly consolidated financial reports” [2], we have adopted the “Accounting standards formeasurement of inventories” from the current 1st quarter consolidated accounting period and the basis ofmeasurement has been changed from cost method to writing down method below cost to the net selling
value for decreased profitability. As a result, operating profit in “Japan” increased 26 million yen, comparing
with the computation by the previous method.
2. As described in “Change in policies, procedures and presentation for accounting treatment of preparationof quarterly consolidated financial reports” [3], we have adopted the “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” from thecurrent 1st quarter consolidated accounting period to make necessary adjustments on consolidation. As aresult, operating profit in “America” and “Asia” decreased 10 million yen and 2 million yen, respectively,
while in “Europe” increased 13 million yen, comparing with the computation by the previous method.
3. As described in “Change in policies, procedures and presentation for accounting treatment of preparationof quarterly consolidated financial reports” (Additional information), Nipro Corporation and its domestic
subsidiary companies have changed the useful lives of machinery from the current 1st quarter consolidated
accounting period according to the revision of corporate income tax law. As a result, operating profit in“Japan”, and “Eliminations/Corporate” decreased 700 million yen and 0 million yen, respectively,
comparing with the computation by the previous useful lives.
4. Classification of countries or areas is based on geographical proximity.
5. 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- 11 -

[3] Overseas Sales
Current period (From April 1, 2008 to September 30, 2008)
America

1. Overseas sales(Note: Amounts are truncated to one million yen)

Europe15,381

9,610

Asia

5,214

Percentage of overseas sales

30,206
86,575

2. Consolidated net sales
3. to consolidated net sales (%)

Total

17.8%

11.1%

6.0%

34.9%

(Notes) 1. Overseas sales represent those of the Company and the consolidated subsidiaries to countries
and areas outside of Japan
2. Classification of countries or areas is based on geographical proximity.
3. The major countries included in each geographical area are as follows:
America………The United States of America, Canada and Brazil
Europe………. Belgium, Denmark and Germany
Asia………….. China, India, Indonesia, Taiwan and Thailand(6) Notes to Statements of Shareholders’ Equity, if having significant variation.
N/A- 12 -

[Reference Information]
Quarterly Consolidated Financial Reports for 2nd quarter of previous consolidation accounting period(1) Interim Consolidated Statements of Income for the Six Months Period ended September 30, 2007 (Year ended
March 31, 2008)(Note: Amounts are truncated to one million yen)Previous Period(From April 1, 2007
To September 30, 2007)

Account

Net sales
Cost of goods sold

84,28859,839Gross profit
Selling, general andadministrative expenses
Operating income
Non-operating income
Interest income
Dividend income
OthersNon-operating expenses
Interest expenses
Exchange loss
Depreciation
Equity in loss of affiliate
Others24,44817,015Recurring income
Extraordinary gains
Gain on sale of fixed assets
Life insurance income
OthersExtraordinary losses
Loss on sale and disposal of fixed assets
Loss on disposal of inventories
Abnormal manufacturing cost
Allowance for accrued severance indemnityfor directors and corporate auditors in prior year
OthersNet(Quarter) income before
adjustment of taxes
Corporate, inhabitants andenterprise taxes
Adjustment for deferred taxes
Minority shareholders’ share in net
income of consolidated subsidiaries
Net(Quarter) income

6,537
283
16
191
76
803
122
31
64
471

7,432
827
210
313
303
1,723
888
148
167
397
122

- 13 -

112
6,017
2,692
(29)
26
3,328

(2) Interim Consolidated Statements of Cash Flow
(Note: Amounts are truncated to one million yen)Previous Period(From April 1, 2007
To September 30, 2007)
Cash flows from operating activities
Net income before adjustment for taxes
Depreciation and amortization
Amortization of goodwill
Equity in loss(gain) of affiliate
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Exchange loss (gain)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other non-operating income/expenses andextraordinary gains/losses
SubtotalInterest and dividends received
Interest paid
Other revenues
Other expenditures
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Deposits in time deposits
Proceeds from matured time deposits
Payments for purchases of securities
Payments for acquisition of shares with change
in scope of consolidated subsidiary
Payments for acquisition of fixed assets
Proceeds from sales of fixed assets
Decrease(increase) in short-term lending
Collections of loans receivable
Payments for other investments
Revenues from other investments
Cash flows from investing activities
Cash flows from investing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Payments for redemption of bonds
Proceeds from issuance of shares
Proceeds from disposal of treasury stock
Payments for acquisition of treasury stock
Repayments of finance lease obligations
Payments for dividends
Other payments
Cash flows from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at the
beginning of the period
Balance of cash and cash equivalents at the end of the period- 14 -

6,017
6,871
106
397
3
(524)
888
(198)
(1,985)(3,824)2,623
202(1,109)
(104)
9,365
546
(861)
674
(208)
(7,586)
1,931(1,307)
1,399(1,014)(2,479)(11,951)
56
(490)
29
(1)
21
(15,737)
776
8,633(6,507)
(30)
3
8
(42)
(14)
(2,345)
(14)
467
347
(12,991)
46,10933,118

(3) Segment information[1] Segment information by business category
Previous period (From April 1, 2007 to September 30, 2007)(Note: Amounts are truncated to one million yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials

54,196

24,396

5,365

330

-

-

1,635

Total

54,196

24,396

Operating income(loss)

8,331

1,896

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

Eliminations/Corporate

Consolidated

84,288-84,28835

1,670(1,670)

-

7,000

365

85,959(1,670)84,288854

111,083(3,651)

7,432

Other

Total

[2] Segment information by geographical area
Previous period (From April 1, 2007 to September 30, 2007)
Japan

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

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

EuropeAsia

Eliminations
Consolidated/Corporate

Total

66,818

9,864

4,455

3,149

84,288-84,28813,914

604

5

6,829

21,354(21,354)-

Total

80,733

10,468

4,461

9,978

105,642(21,354)

84,288Operating income(loss)

11,608

(568)

231

415

11,687(4,254)

7,432[3] Overseas Sales
Previous period (From April 1, 2007 to September 30, 2007)
America

1. Overseas sales(Note: Amounts are truncated to one million yen)
Europe17,429

9,426

Asia

4,945

Percentage of overseas sales

31,801
84,288

2. Consolidated net sales
3. to consolidated net sales (%)

Total

20.7%

- 15 -

11.2%

5.8%

37.7%