Summary Report of Consolidated Financial Results
For the Six Months Period ended September 30, 2016
November 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: November 14, 2016
Payment date of cash dividends: December 8, 2016
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, 2016 (From April 1, 2016 to September 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%
6 months ended September 30, 2016
177,581(1.1)
15,94336.8
6,659(34.3)
2,923(48.2)
6 months ended September 30, 2015
179,530
16.2
11,651
46.8
10,140
17.7
5,646
3.2
Note: Comprehensive income 6 months ended September 30, 2016: (18,422) million yen (-%) 6 months ended September 30, 2015: 3,545 million
yen (-%)

6 months ended September 30, 2016
6 months ended September 30, 2015

Earnings per share
Yen
17.26
33.29

(2) Consolidated Financial Position
Total Assets
Millions of yen
6 months ended September 30, 2016
702,590
Year ended March 31, 2016
708,882
Note: Equity

2.

Diluted Earnings per share
Yen
15.68
-

Net Assets
Millions of yen
151,322
175,507

6 months ended September 30, 2016: 142,499 million yen

Equity Ratio
%
20.3
23.4

Year ended March 31, 2016: 165,997 million yen

Dividends

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
7.50

First-quarter
Yen
-

-

Annual Dividends

Yen
33.50

17.00

24.50

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 year ending March 31, 2017 show increase/decrease ratio against the year ended March 31, 2016)

Operating
IncomeNet Sales
Millions of yen%

Millions of yen

Ordinary Income%

Millions of yen%

363,000(1.0)
29,00019.8
20,00036.8
Note: Revisions to the forecast of consolidated financial results in the current quarter: No
Year ending March 31, 2017

Net Income
Millions of yen

12,500%(36.6)

Earnings
per Share
Yen
74.44

*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.5 “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):
6 months ended September 30, 2016: 171,459,479 sharesYear ended March 31, 2016: 171,459,479 shares[2] Number of treasury stock at end of the period:
6 months ended September 30, 2016:

4,016,285 sharesYear ended March 31, 2016:

1,666,187 shares[3] Average number of shares during the period:
6 months ended September 30, 2016: 169,404,797 shares

6 months ended September 30, 2015: 169,602,699 shares

Note: Number of the treasury stocks as of September 30, 2016 included 583,300 shares, and as of March 31, 2016
included 716,300 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.5“1. Qualitative Information for the Six-Month Period Ended September 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 Six-Months Period ended September 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

5(1) Changes in Significant Consolidated Subsidiaries

5(2) Accounting Treatments Simplified or Unique for Preparation

5(3) Changes in Accounting Policies and Accounting Estimate and Restatement

5(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 Income8(3) Quarterly Consolidated Statements of Cash Flows

10(4) Notes Regarding Consolidated Financial Statement

12(Notes regarding going concern)

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

12(Segment Information)

12

-1-

1. Qualitative Information for the Six-Month Period Ended September 30, 2016
(1) Commentary on Business Results

During the six 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. Despite corporate earnings remaining firm, the Japanese economy
continues to face an unpredictable situation with such concerns as high volatility in stock prices and exchange rates. The
Nipro Group also faced challenges in terms of revenue as a result of factors such as the impact of exchange rates andrevision of the reimbursement prices for medical devices and drugs.
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 six-month period ended September 30, 2016 decreased by 1.1% from the same
period of the previous year to 177,581 million yen. As for the profit, consolidated operating income increased by 36.8%
from the same period of the previous year to 15,943 million yen. Consolidated ordinary income decreased by 34.3% fromthe same period of the previous year to 6,659 million yen mostly because of exchange loses. Consolidated net income
attributable to owners of parent decreased by 48.2% from the same period of the previous year to 2,923 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 June
2016. However, the competitive environment of domestic market became fiercer by the appearance of manufactures oforiginal 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, thatmade 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 andprescribers. 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 wholesaler and Medical
Sales Division.
Meanwhile, overseas sales, despite an increase in sales quantity of mainstay dialysis products such as dialyzers andhospital products, decreased in both sales and profit from the same period of the previous year due to a major
appreciation of the yen which lowered unit prices of the products and also due to the sale of Nipro Diagnostics, Inc., aconsolidated subsidiary. On the other hand, even in this headwind, we have promoted direct sales activities by actively
strengthening overseas sales networks in order to quickly respond to front-line needs and expand sales; we established a
new office of the Thai sales subsidiary in Ho Chi Minh City, Vietnam during the current quarter period under review.
Furthermore, in India, a country which we place a particular focus on, we established offices for our Indian sales
subsidiary in seven states (Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Punjab, Rajasthan, and Uttar Pradesh) in
July and August, totaling 13 offices. Through these sales offices, we will enhance our presence in the market by providing-2-

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 theirproduction 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 decreased by 3.4% from the same period of the previous year to 127,988 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. Furthermore, in addition to launch of new products, efforts to upgrade and expand our contracted
manufacturing capabilities for the dedicated biopharmaceuticals line and the lines at the high potency active
pharmaceutical ingredients manufacturing plant contributed to strong sales.
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 12.2% from the same period of the previous year to 34,110 million yen.

(iii) PharmaPackaging BusinessIn the PharmaPackaging Business, adding to the business of our conventional products, we have made efforts toengage in marketing through academic channels, by attending academic conferences for example, to understand theneeds of globalizing customers and acquire new demand. We have also promoted the development of new technologies
and new products domestically and overseas to support injectable formulations and filling processes, which require
quality with high stability.
For domestic department sales, under the policies of “One Nipro” and “One Stop Solution,” we changed the trade flow
to pharmaceutical companies in Japan starting this fiscal year and have started to sell pharmaceutical packaging
materials through the Pharmaceutical Business Division, aiming to achieve synergy with the Pharmaceutical-Related
Business in the areas of customer service, marketing, and product development. While sales for the current quarter
increased, led by strong sales of vials and thermos bottles, external sales decreased due to the effect of an increase in
the elimination of internal sales between segments, which was caused by the abovementioned change in the trade flow.
With regard to manufacturing, production volume dropped and cost increased at the Biwako Factory due to inventory
adjustments at pharmaceutical companies for certain products. However, we continue to work on thorough quality
improvement by strengthening our management system centered on the ISO management system and by establishingand operating a production system that is supported by the aggregation and analysis of detailed manufacturing data inorder to produce high quality medical containers.

-3-

Looking at the overseas department, although sales were affected by inventory adjustments at pharmaceuticalcompanies in China, sales of high-value-added products in the U.S. and Europe grew and sales also steadily increased
in India and Russia. As a result, sales, which were adjusted to eliminate the negative effect of currency translation due tothe stronger yen, increased as compared with the same period in the previous fiscal year. With regard to manufacturing,
we pushed forward with automating manufacturing processes at each factory, stabilization and improvement of quality
through improved productivity efficiency, and cost reduction. As a result, the rate of return increased in all regions.
As a comprehensive manufacturer of pharmaceutical packaging materials, the PharmaPackaging Business Division willcontinue to strive to expand business by developing and introducing to the market advanced products that meet the
medical needs of countries all over the world.
As a result, net sales of this business decreased 6.7% from the same period of the previous year to 15,467 million yen.

(iv) Other BusinessAmong other business, sales from the real-estate rental business were 15 million yen (down by 5.6% from the same
period of the previous year).

(2) Analysis Concerning Financial Position[1] Analysis Concerning the Conditions of Assets, Liabilities and Net Assets
Total assets decreased by 6,292 million yen from the end of the previous year to 702,590 million yen. Current assets
increased by 4,187 million yen primarily due to an increase of 4,248 million yen in cash and cash equivalents, andnoncurrent assets decreased by 10,479 million yen primarily due to a decrease of 3,258 million yen in investment
securities.
Total liabilities increased by 17,892 million yen from the end of the previous year to 551,267 million yen. Current
liabilities decreased by 11,531 million yen primarily due to a decrease of 7,749 million yen in short-term loans payable,
and noncurrent liabilities increased by 29,423 million yen primarily due to an increase of 29,947 million yen in long-termloans payable.
Total net assets decreased by 24,184 million yen from the end of the previous year to 151,322 million yen.
Shareholders’ equity decreased by 2,960 million yen and accumulated other comprehensive income decreased by 20,537
million yen. As a result, capital adequacy ratio decreased by 3.1% from the end of the previous year to 20.3%.

[2] Condition of cash flow
The ending balance of cash and cash equivalents in the period under review increased 7,293 million yen from theprevious year to 119,271 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities was 15,882 million yen. The main accounts of cash inflow were depreciation,
14,765 million yen and increase in notes and accounts payable - trade, 7,483 million yen. The main account of cash
outflow was increase in inventories, 8,986 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 24,862 million yen. The main account of cash inflow was proceeds fromwithdrawal of time deposits, 7,226 million yen. The main account of cash outflow was purchase of noncurrent assets,
24,207 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 19,545 million yen. The main account of cash inflow was proceeds fromlong-term loans payable, 68,417 million yen. The main account of cash outflow was repayment of long-term loans payable,
47,375 million yen.

-4-(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 November 8, 2016.
Revision of Consolidated Financial Forecast for the Year ending March 31, 2017 (From April 1, 2016 to March 31, 2017)
announced on November 8, 2016
Net Sales

Operating
IncomeOrdinary Income

Net Income

Earnings
per Share(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Yen)

Previous forecast (A)375,000

30,20027,90018,000106.01

Revised forecast (B)363,000

29,00020,00012,50074.44

Difference (B)-(A)(12,000)(1,200)(7,900)(5,500)

-

(3.2)

(4.0)

(28.3)(30.6)-

366,650

24,204

14,623

19,718116.22

Change (%)(Reference) Results of Year
ended March 31, 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 indepreciation method due to Tax Reform 2016” (ASBJ PITF No.32, June 17, 2016) from the three-month period ended
June 30, 2016 and has applied the straight line method in place of declining balance method to the facilities andstructures 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 September 30, 2016 increased by 87 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-month period 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
September 30, 2016

126,667
113,235
68,683
10,16723,851
6,380
20,115(983)
368,117130,916
109,869
70,835
10,901
24,4596,387
19,778(842)
372,304

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

188,118(86,423)
101,695
218,512(154,975)
63,537
20,8273,506(2,358)
1,147
21,273
46,828(34,904)
11,924
220,405

28,8762,469
13,56644,91325,971
2,360
12,40340,73658,560253
3,947
15,625(6,292)
72,094
340,764
708,882

55,302
263
5,007
14,206(5,635)
69,143
330,285
702,590

(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
September 30, 2016

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

56,123
118,099
10,000
1,010
1,064
8,625
－
3,856
5,448
198
18,275
17,914
240,616

18,33025,00017,90025,000224,945
3,132
1,985
5,017
553
18
2,245
281,227
533,375

254,892
3,042
1,782
5,046
524
15
2,447
310,650
551,267

84,39773,067(1,475)
155,990

84,39773,192(4,560)153,029(3,347)(12)
14,187(821)
10,007
9,509
175,507
708,882(6,500)(276)(2,992)(761)(10,530)
8,823
151,322702,590

(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 September, 2015) to September, 2016)
Net sales
179,530
177,581
Cost of sales
123,116
119,254
Gross profit
56,41358,326
Selling, general and administrative expenses
44,76242,383Operating income
11,651
15,943Non-operating income
Interest income
410
237
Dividends income
753
762
Reversal of allowance for doubtful accounts
363
19
Other
663
715
Total non-operating income
2,191
1,735
Non-operating expenses
Interest expenses
2,119
1,888
Share of loss of entities accounted for using equity method
95－
Foreign exchange losses
364
7,919
Other
1,122
1,212
Total non-operating expenses
3,702
11,020Ordinary income
10,1406,659
Extraordinary income
Gain on sales of noncurrent assets
270
64
Compensation income
120
－
Other
50
16
Total extraordinary income
441
81
Extraordinary loss
Loss on retirement of noncurrent assets
48
199
Loss on valuation of investment securities
80－
Loss on sales of investment securities
289
0
Provision of allowance for doubtful accounts
824
－
Other
90
82
Total extraordinary losses
1,333
282
Income before income taxes
9,248
6,458
Income taxes-current
4,814
3,365
Income taxes-deferred(1,302)
41
Total income taxes
3,511
3,407
Net income
5,736
3,051
Net income attributable to non-controlling interests
90
127
Net income attributable to owners of parent
5,646
2,923

-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-

FY2015(From April 1, 2015
to September, 2015)
5,736(Millions of yen)
FY2016(From April 1, 2016
to September, 2016)
3,051

17
(3)
(2,266)48
13(3,153)(264)(18,117)60－(2,191)
3,545
3,385

(21,474)(18,422)(17,614)

160

(808)

(3) [ Quarterly Consolidated Statements of Cash Flows](Amount: million yen)
FY2015 first six months(From April 1, 2015
to September 30, 2015)

FY2016 first six months(From April 1, 2016
to September 30, 2016)

Income before income taxes

9,248

6,458

Depreciation and amortization

14,381

14,765

0

0

2,084

1,457

95

－

Net cash provided by (used in) operating activities

Impairment loss
Amortization of goodwill
Share of (profit) loss of entities accounted forusing equity method
Increase (decrease) in allowance for doubtful accounts

377

(95)

Increase (decrease) in ｎet defined benefit liability

352

272

Interest and dividends income(1,164)(1,000)Interest expenses

2,119

1,888

Foreign exchange losses (gains)

(877)

5,090

Loss (gain) on sales of investment securities

289

0

Decrease (increase) in notes and accounts receivable-trade(1,699)(3,351)

Decrease (increase) in inventories(2,680)(8,986)

Increase (decrease) in notes and accounts payable-trade

4,045

7,483

Decrease (increase) in other assets(8,000)(20)

Increase (decrease) in other liabilities(6,385)(3,750)

Other loss (gain)
Subtotal

(111)

365

12,072

20,577

Interest and dividends income received

1,163

984

Interest expenses paid

(2,128)(1,859)Other proceeds

169

167

Other payments

(210)

(208)

Income taxes paid

(1,760)(3,779)Net cash provided by (use in) operating activities

9,307

15,882

Payments into time deposits(6,094)(6,154)

Proceeds from withdrawal of time deposits

6,479

7,226

Purchase of investment securities

(200)

(769)

Proceeds from sales of investment securities

617

0

－

(8)

Net cash provided by (used in) investing activities

Purchase of shares of subsidiaries
Purchase of shares of subsidiaries and associates

－

(424)

(18,895)(24,207)

Proceeds from sales of noncurrent assets

437

176

Payments for retirement of noncurrent assets

(13)

(138)

－

10

Net decrease (increase) in short-term loans receivable(2,530)(374)

Payments of loans receivable(1,625)(262)

Collection of loans receivable

1,607

59

Other payments(7,270)－

Other proceeds

363(27,452)(24,862)

Purchase of noncurrent assets

Proceeds from governmental subsidies
for investment in property and equipment

Net cash provided by (use in) investment activities- 10 -

(Amount: million yen)(Amount: million yen)

FY2015 first six months(From April 1, 2015
to September 30, 2015)

FY2016 first six months(From April 1, 2016
to September 30, 2016)

1,082

6,825

Net cash provided by (use in) financial activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

37,03568,417

Repayment of long-term loans payable(25,270)(47,375)

Redemption of bonds(1,057)(1,682)

Proceeds from sales of treasury shares

99

121

Purchase of treasury shares－(3,206)

Proceeds from sales and leasebacks

1,317

－

Repayments of finance lease obligations

(566)

(564)

(2,468)(2,811)

Cash dividends paid
Cash dividends paid to minority shareholders

(22)

(28)

(1,113)

(150)

(0)

－

9,035

19,545513(3,509)Net increase (decrease) in cash and cash equivalents(8,596)

7,056

Cash and cash equivalents at beginning of paid

98,199111,977773

237

90,376

119,271

Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other payments
Net cash provided by (use in) financing activities
Effect of exchange rate change on cash and cash equivalents

Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Cash and cash equivalents at end of period- 11 -

(4) Notes Regarding Consolidated Financial Statement(Notes regarding going concern)
N/A(Notes regarding significant changes in the amount of shareholders' equity)
The Company repurchased 2,482,900 shares of its own common stocks in accordance with the provisions of Article
156 of the Companies Act, as applied pursuant to the provisions of Paragraph 3, Article 165 of the Companies Act,after authorization at the Board of Directors’ Meeting held on June 28, 2016.
Due to the repurchase, treasury shares increased by 3,085 million yen during the three-month period ended
September 30, 2016 to 4,560 million yen as of the end of that period.

(Segment Information)Ⅰ

FY2015 (From April 1, 2015 to September 30, 2015)

1.

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

PharmaceuticalRelated

PharmaPackaging

Total

Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
Statements ofIncome(Note.3)

Net sales(1)Sales to third parties

132,547

30,393

16,573

179,514

16

179,530－

179,530(2)Inter-segment sales
and transfers

972

4,205

451

5,629

17

5,647

(5,647)－

Total

133,520

34,59817,024

185,144

34

185,178(5,647)

179,530

Segment profit

14,446

5,449

(997)

18,89833

18,932(7,280)11,651(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 (7,280) million yen includes elimination of intercompany profits oninventories of (604) million yen and corporate cost of (6,676) million yen. Corporate cost consists primarily ofgeneral and administrative 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- 12 -

Ⅱ

FY2016 (From April 1, 2016 to September 30, 2016)

1.

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

127,988

34,11015,467

177,566

15

177,581-

177,581(2)Inter-segment sales
and transfers

724

4,835

1

5,561

315

5, 877(5, 877)-

Total

128,71238,945

15,469183,127331

183,458(5, 877)

177,581

Segment profit

14, 573

7,569

(372)

21,77046

21,816(5,873)

15,943(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 (5,873) million yen includes realization of intercompany profits on inventories
of 1,974 million yen and corporate cost of (7,847) 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. Changes in Reportable Segments
The Company has changed a name of reportable segment from the beginning of the first quarter in FY2016. 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 September 30, 2015) reflects this change
and the current segment name is used.
3. Information on Impairment Loss on Fixed Assets and on Goodwill by Reportable Segment
N/A- 13 -