Summary Report of Consolidated Financial Results
For the Three Months Period ended June 30, 2016
August 10, 2016stCompany 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 12, 2016
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, 2016 (From April 1, 2016 to June 30, 2016)(1) Consolidated Results of Operations(Note: % of change from the same period a year ago)
Net Sales
Operating Income
Ordinary Income
Net Income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
3 months ended June 30, 2016
89,124
1.2
9,257
69.0
2,185
△62.7
213 △94.5
3 months ended June 30, 2015
88,097
16.8
5,476
95.5
5,852
172.6
3,904 211.9
Note: Comprehensive income 3 months ended June 30, 2016: △14,509 million yen (-%) 3 months ended June 30, 2015: 2,885 million yen(142.1%)3 months ended June 30, 2016
3 months ended June 30, 2015

Earnings per share
Yen
1.26
23.03

(2) Consolidated Financial Position
Total Assets
Millions of yen
3 months ended June 30, 2016
682,642
Year ended March 31, 2016
708,882

Diluted Earnings per share
Yen
1.14
-

Net Assets
Millions of yen
158,338
175,507

Equity Ratio
%
21.8
23.4

Note: Equity 3 months ended June 30, 2016: 149,081 million yen Year ended March 31, 2016: 165,997 million yen

2.

Dividends
First-quarter
Yen
Year ended March 31, 2016
Year ending March 31, 2017
Year ending March 31, 2017
(Forecast)-

Annual Dividends per Year
Year-end Dividends
Second-quarter
Third-quarter
Yen
Yen
Yen
17.00
16.50
20.00

-

20.50

Annual Dividends

Yen
33.50
40.50

Note: Revisions to the forecast of cash dividends in the current quarter: No
3. Forecast of Consolidated Financial Results for the Year ending March 31, 2017 (From April 1, 2016 to March 31, 2017)(Note: The % displays in the line of 6 months ending Sept. 30, 2016 show increase/decrease ratio against the six months
ended Sept. 30, 2015. The % displays in the line of year ending March 31, 2017 show increase/decrease ratio against theyear ended March 31, 2016
OperatingEarnings
Net Sales
Ordinary Income
Net Income
Incomeper Share
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
6 months ending Sept. 30, 2016
181,300
1.0
13,400 15.0
12,300
21.3
7,800
38.1
45.94
375,000
2.3
30,20024.8
27,90090.8
106.01
Year ending March 31, 2017
18,000 △8.7
Note: Revisions to the forecast of consolidated financial results in the current quarter: No

*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: Yes[2] Changes other than [1]: No[3] Change in accounting estimate: No[4] Restatement: No
Note: More information can be found in P.4 “2. Summary (Other) Information, (3) Changes in Accounting Policies andAccounting Estimate and Restatement” in the attachment.
(4) Issued Shares (Common stock)[1] Number of issued shares at end of the period (including treasury stock):
3 months ended June 30, 2016: 171,459,479 sharesYear ended March 31, 2016: 171,459,479 shares[2] Number of treasury stock at end of the period:
3 months ended June 30, 2016: 1,615,987 sharesYear ended March 31, 2016:
1,666,187 shares[3] Average number of shares during the period:
3 months ended June 30, 2016: 169,810,816 shares
3 months ended June 30, 2015: 169,572,552 shares
Note: Number of the treasury stocks as of June 30, 2016 included 666,100 shares, and as of March 31, 2016 included
761,300 shares owned by Trust and Custody Service Bank, Ltd (Trust Account E).
*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 Three-Month Period Ended June 30, 2016, (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 Three-Months Period ended June 30, 20162(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

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(4) Additional Information

5

Consolidated Financial Statements

6(1) Quarterly Consolidated Balance Sheets

6(2) Quarterly Consolidated Statements of Income andQuarterly Consolidated Statements of Comprehensive Income

8(3) Notes Regarding Consolidated Financial Statement

10(Notes regarding going concern)

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

10(Segment Information)

10

-1-

1. Qualitative Information for the Three-Month Period Ended June 30, 2016
(1) Commentary on Business Results
During the three months of the fiscal year under review, the global economy outlook has become more uncertain due tothe threat of terrorist attacks in various areas, the Brexit issue, concerns about the slowdown of growth in emerging
countries, and the rapid appreciation of the yen. The Japanese economy also saw a slightly escalating economic
stagnation due to reasons including a downturn in stock prices and a drop in profitability of import due to the higher yen,although employment and consumption were both solid. The Nipro Group also faced challenges in terms of revenue as aresult of factors such as the impact of exchange rates and revision of drug prices.
Under such circumstances, the Nipro Group has worked to improve operating results through its efforts to expand sales
and reduce costs for the purpose of its continued development and realizing its customers’ demand.
As a result, consolidated sales for the three-month period ended June 30, 2016 increased by 1.2% from the same
period of the previous year to 89,124 million yen. As for the profit, consolidated operating income increased by 69.0% fromthe same period of the previous year to 9,257 million yen. Consolidated ordinary income decreased by 62.7% from thesame period of the previous year to 2,185 million yen due to the foreign exchange loss. Consolidated net income
attributable to owners of the parent decreased by 94.5% from the same period of the previous year to 213 million yen.
The overview of the results for the current quarter period under review by business segment is as follows.

(i)

Medical-Related Business
Domestic sales of Medical-Related Business saw a tougher market situation due to the revisions to medical service

fees and drug prices in April this year. Under such circumstances, the sales of the Medical Sales Division remained solidin each field such as injection-transfusion products, enteral-alimentation products, testing products, dialysis products,
cardiovascular products and cardiac surgery (CVS) products. Sales largely increased in multiple fields; especially HDF
filter and dialysis monitoring devices in the field of dialysis products, HeartMateⅡ○
R , or Left Ventricular Assist Device, inthe field of cardiac surgery (CVS) products, and then SeQuent○
R Please, or Drug Eluting Balloon Catheter, in the field ofcardiovascular products.
As for the Pharmaceutical Sales Division, the sales were steady due to the sales growth of the existing products andthe expansion of the market with the promotion policy of generic drugs and the launch of addenda listing items in
December 2015. However, the competitive environment of domestic market became fiercer by the appearance of
manufactures of original drugs running sideline business. In addition, large markets of new big listing items have being
continuously entered by over dozens of competitors and initial sales of AG (authorized generic) allows to market
occupation, that made the market price competition more intensified to impact significantly to sales and profit. Therefore,
we will further strengthen the sales promotion to dispensing pharmacies, diagnosis procedure combination (DPC)hospitals and prescribers. As well, we are trying to increase the share of drugs for oral and external use and worked
harder for information offering activities of injectable drugs based on the collaboration with pharmaceutical wholesalerand Medical Sales Division.
Meanwhile, overseas sales were solid in Europe and the United States; however, in addition to factors such as the
slowdown in growth of the Chinese economy and economic recessions in resource-producing countries, as a result of
foreign exchange rates including a major appreciation of the yen and a depreciation of the currencies of emerging
countries and the sale of Nipro Diagnostics, Inc., a consolidated subsidiary, both sales and profit decreased from thesame period of the previous year. On the other hand, even in this headwind, we have promoted direct sales activities byactively strengthening overseas sales networks in order to quickly respond to front-line needs and expand sales; weestablished a new office of the European sales subsidiary in Vienna, Austria during the current quarter period underreview. Furthermore, in India, a country which we place a particular focus on, we established the sixth office of the Indian
sales subsidiary in Kochi, the biggest city in the Kerala State in May; we will open seven more offices by the end of
August, totaling 13 offices. Through these sales offices, we will enhance our presence in the market by providing more
locally-oriented and finely-tuned services and responding to front-line needs.
New overseas manufacturing facilities (in India, Indonesia, Bangladesh and Hefei in China) further improved their-2-

production system and realized stable production expansion under established quality system to promote their sales
widely in their countries and surrounding areas.
As a result, net sales of this business increased by 0.8% from the same period of the previous year to 65,046 million
yen.

(ii)

Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business, we have broadened our contracted manufacturing operation to encompass
contracts to develop products from the formulation design of drugs and to develop products using our expertisedeveloping and supplying vials, syringes, bags, and other packaging containers. We also endeavored to expand thecontracted business by offering a diverse range of detailed yet wide-ranging contract services, such as support forlifecycle management where we believe we can enhance the value-added features and realize distinct service
differentiation. In addition, efforts to upgrade and expand our contracted manufacturing capabilities for the dedicatedbiopharmaceuticals line and the lines at the high potency active pharmaceutical ingredients manufacturing plant
contributed to strong sales of contracted manufacturing.
Sales of pharmaceutical containers and the devices for pharmaceutical preparation or administration steadily increased
by offering containers and systems suitable to each pharmaceutical product which we developed by ourselves or throughjoint development with pharmaceutical manufactures. Such efforts were made to meet various needs in the medical front,
including small-volume bags, materials for pre-filled syringes (plastic and glass), etc., on top of rubber stoppers forpharmaceutical and vaccine use and containers for kit products. In addition, under the government’s policy to curb medical
expenses, we have worked together with domestic and foreign pharmaceutical manufactures in enhancing
comprehensive lifecycle management of pharmaceutical products, taking into consideration the development of
combination products (our original collaboration between pharmaceutical products and medical devices), self-injection
systems, and dosage form/administrating path modification in the future.
As a result, net sales of this business increased 3.8% from the same period of the previous year to 16,091 million yen.

(iii) PharmaPackaging BusinessIn the PharmaPackaging Business, adding to the business of our conventional products, we have made effort ofmarketing through academic channels to acquire global customer needs and new demands while we have promoted thedevelopment of new technologies and new products to support injectable formulation and filling process with high stability.
For the domestic department, we steadily increased the sales mainly in glass tube draws and vials. As for “Biwako
Factory,” a state-of-the-art plant for pharmaceutical packaging, with the purpose of further improving our quality assurance
system for good manufacturing practice (GMP), the factory aims to establish the production and sales system of highquality glass for medical purpose and promotes their activities to meet the needs from global customers.
Looking at the overseas department, in Europe and the United States, where the markets are matured and demands forhigh value added products are expanding, both sales and profit have increased thanks to fine sales in high-tech prefilled
syringes and vials. In the developing countries such as India and Russia, sales of glass tube draws, ampoules and vials
remained solid. The markets in China are greatly shifting to require higher quality, and we are accelerating introducing
high quality products into this market by investing the facilities of our three existing plants.
In this business, we have promoted the changing to general pharma packaging business with a fusion of products andtechnologies cultivated in both medical and pharmaceutical related businesses such as rubber stoppers and plastic
containers as well as glass containers. For this business, we will construct a building for medical rubber stoppers in thesite of the Biwako Factory within this fiscal year, and plan to commence operating it in 2017. With this initiative, we will
respond to customer needs in a speedier manner as a base for supplying pharmaceutical packaging materials forcomprehensive medical use. In addition, the standardization of product specifications and services in each office has
been also promoted to meet the requirement from global pharmaceutical companies. We will promote effective-3-

investment domestically and internationally to strengthen production capacity of conventional products, improve thequality and introduce new products for the continuous expansion of our business providing the products and services witha user-focused approach.
Among other glass-related products, domestic sales of glass of thermos bottles are solid and whole sales of thisdepartment remained solid.
As a result, net sales of this business decreased 0.9% from the same period of the previous year to 7,979 million yen.

(iv) Other BusinessAmong other business, sales from the real-estate rental business were 7 million yen (down by 4.9% from the same
period of the previous year).

(2) Analysis Concerning Financial Position
Analysis Concerning the Conditions of Assets, Liabilities and Net Assets
Total assets decreased by 26,240 million yen from the end of the previous year to 682,642 million yen. Current assets
decreased by 13,880 million yen primarily due to a decrease of 15,581 million yen in cash and deposits, and noncurrent
assets decreased by 12,360 million yen primarily due to a decrease of 11,811 million yen in investment securities.
Total liabilities decreased by 9,071 million yen from the end of the previous year to 524,303 million yen. Current
liabilities decreased by 25,940 million yen primarily due to a decrease of 23,108 million yen in short-term loans payable,
and noncurrent liabilities increased by 16,868 million yen primarily due to an increase of 17,115 million yen in long-termloans payable.
Total net assets decreased by 17,168 million yen from the end of the previous year to 158,338 million yen.
Shareholders’ equity decreased by 2,573 million yen and accumulated other comprehensive income decreased by 14,342
million yen. As a result, capital adequacy ratio decreased by 1.6% from the end of the previous year to 21.8%.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
It is expected that the prospect for the global economy will remain uncertain for the time being due to reasons such as
anticipated continuation of the trend of the higher yen in exchange rates; however, the Nipro Group will focus on
acceleration of development of new products and new technologies in order to continue our efforts to achieve the goal of
the consolidated net sales of 500 billion yen in FY2020, and promote business deployment with social contribution with
innovative technologies in mind.
At this moment, we have not made any revision to the forecast of consolidated financial results for the year ending
March 31, 2017, which was announced on May 12, 2016.

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(Change in Accounting Policies)
Application of the Practical Solution on a change in depreciation method due to Tax Reform 2016
Following the Revisions of the Corporate Tax Law, the Company adopted "Practical Solution on a change in-4-

depreciation method due to Tax Reform 2016” (ASBJ PITF No.32, June 17, 2016) in the current period under review andhas applied the straight line method in place of declining balance method to the facilities and structures of buildings
acquired on or after April 1, 2016.
As a result, consolidated operating income, consolidated ordinary profit and surplus before income taxes in the threemonths ended June 30, 2016 increased by 24 million yen respectively in comparison with the previous method.

(4) Additional Information
Application of Revised Implementation Guidance on Recoverability of Deferred Tax Assets
The Company has applied Revised Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ
Guidance No.26, March 28, 2016) from the three months ended June 30, 2016.

-5-5. Consolidated Financial Statements(1) [ Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2016
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-6-

As of
June 30, 2016

126,667
113,235
68,683
10,16723,851
6,380
20,115△ 983
368,117

111,086
113,601
69,52910,837
24,623
5,579
19,914△ 935
354,237

184,037△ 84,826
99,211
217,074△ 154,911
62,162
21,123
3,229△ 2,208
1,021
27,643
46,976△ 34,382
12,594
223,756

184,858△ 85,913
98,944
218,723△ 155,988
62,73421,0103,456△ 2,257
1,198
26,83346,933△ 34,771
12,161
222,883

28,8762,469
13,56644,91327,3602,359
12,66842,38858,560253
3,947
15,625△ 6,292
72,094
340,764
708,882

46,749258
7,282
14,859△ 6,016
63,133
328,404
682,642(Millions of yen)
As ofMarch 31, 2016
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued directors' bounuses
Income taxes payable
Provision for bounuses
Provision for directors' bounuses
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 stock
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

-7-

As of
June 30, 2016

56,185
125,848
10,0002,262
1,044
12,004
389
4,266
3,733
79
12,753
23,579252,147

56,707102,740
10,0001,200
1,066
10,033
2,098
3,126
44
16,62022,570226,207

18,33025,00018,20025,000224,945
3,132
1,985
5,017
553
18
2,245
281,227
533,375

242,061
3,138
1,791
5,123
505
17
2,257
298,095
524,303

84,39773,067△ 1,475
155,990

84,39770,448△ 1,429
153,416△ 3,347△ 12
14,187△ 821
10,007
9,509
175,507
708,882△ 11,608
△ 13
8,097
△ 810
△ 4,334
9,256
158,338
162,642(2) [Consolidated Statements of Income and Consolidated Statement of Comprehensive Income]Consolidated Statements of Income(Millions of yen)
FY2015FY2016(From April 1, 2015 (From April 1, 2016
to March 31, 2016)
to March 31, 2017)
Net sales
88,097
89,124
Cost of sales
60,047
58,832Gross profit
28,05030,292
Selling, general and administrative expenses
22,573
21,034
Operating income
5,476
9,257
Non-operating income
Interest income
178
121
Dividends income
154
194
Foreign exchange gains
860－
Reversal of allowance for doubtful accounts
528
9
Other
261
416
Total non-operating income
1,984
741
Non-operating expenses
Interest expenses
1,075
970
Foreign exchange losses－
6,023
Share of loss of entities accounted for using equity method
47
－
Other
486
820
Total non-operating expenses
1,608
7,814
Ordinary income
5,852
2,185
Extraordinary income
Gain on sales of noncurrent assets
253
36
Other
5
7
Total extraordinary income
259
44
Extraordinary loss
Loss on retirement of noncurrent assets
27
65
Impairment loss
10
－
Other
12
71
Total extraordinary losses
50
137
Income before income taxes
6,061
2,091
Income taxes-current
2,026
892
Income taxes-deferred
44
918
Total income taxes
2,071
1,811
Net income
3,990
280
Net income attributable to non-controlling interests
85
66
Net income attributable to owners of parent
3,904
213

-8-

Consolidated Statements of Comprehensive Income

Income before minority interests
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
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-9-(Millions of yen)
FY2015FY2016(From April 1, 2015 (From April 1, 2016
to March 31, 2016)
to March 31, 2017)
3,990
280
1,755
△ 37
△ 2,86131
7△ 8,261△1△ 6,53710－△ 1,105
2,885
2,833

△ 14,790△ 14,509△ 14,128

51

△ 381

(3) Notes Regarding Consolidated Financial Statement(Notes regarding going concern)
N/A(Notes regarding significant changes in the amount of shareholders’ equity)
N/A(Segment Information)
Ⅰ
1.

FY2015 (From April 1, 2015 to June 30, 2015)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalRelated

PharmaceuticalRelated

PharmaPackaging

Total

Other
(Note.1)

Total

Consolidated
Statements ofIncome(Note.3)

Adjustment(Note.2)

Net sales(1)Sales to third parties

64,52815,505

8,055

88,0898

88,097-88,097(2)Inter-segment sales
and transfers

432

2,096

237

2,766

8

2,775

(2,775)-

Total

64,961

17,601

8,293

90,856

16

90,873(2,775)88,097

Segment profit

6,853

2,832

(466)

9,218

16

9,234

(3,758)5,476(Notes)1.
2.

3.

“Other” is the business segment which is not included in the segment and consists of real estate income and sales
by headquarter.
Adjustment for the segment profit of (3,758) million yen includes elimination of intercompany profit on inventoriesof (90) million yen and corporate cost of (3,667) million yen. Corporate cost consists 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. Information on Impairment Loss on Fixed Assets and on Goodwill by Reportable Segment
N/A- 10 -

Ⅱ
1.

FY2016 (From April 1, 2016 to June 30, 2016)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
MedicalRelated

PharmaceuticalRelated

PharmaPackaging

Total

Other
(Note.1)

Total

Consolidated
Statements ofIncome(Note.3)

Adjustment(Note.2)

Net sales(1)Sales to third parties

65,046

16,091

7,979

89,117

7

89,124-

89,124(2)Inter-segment sales
and transfers

376

2,442

-

2,818

161

2,979

(2,979)-Total

65,422

18,533

7,979

91,935

169

92,104(2,979)89,124

Segment profit

7,696

3,559

(238)

11,01623

11,040(1,782)

9,257(Notes)1.
2.

3.

“Other” is the business segment which is not included in the segment and consists of real estate income and sales
by headquarter.
Adjustment for the segment profit of (1,782) million yen includes realization of intercompany profit on inventories
of 2,049 million yen and corporate cost of (3,831) million yen. Corporate cost consists 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 quarterly consolidated statement of income.

2. Changes in Reportable Segments
The Company has changed a name of reportable segment from the beginning of the first quarter under review. Former
Glass-Related Business is newly named PharmaPackaging Business.
The change is only in name and has no effects on the business classification or the figures from the first quarter in theprevious fiscal year. The Segment Information for FY2015 (From April 1, 2015 to June 30, 2015) reflects this change andthe current segment name is used.

3. Information on Impairment Loss on Fixed Assets and on Goodwill by Reportable Segment
N/A- 11 -