Summary Report of Consolidated Financial Results
For the Fiscal Year ended March 31, 2010

May 14, 2010
TSE/OSE–1st section

Company name: NIPRO CORPORATION
Code No.8086
URL: http://www.nipro.co.jp/

Representative: Minoru Sano, President and Representative Director
Contact person: Akihiko Yamabe, Director and General Manager of Accounting Division TEL: (06) 6372-2331
Date of the ordinary general shareholders’ meeting: June 25, 2010
Payment date of cash dividends: June 28, 2010
Filling date of quarterly reporting: June 25, 2010
(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Year ended March 31, 2010 (From April 1, 2009 to March 31, 2010)(1) Consolidated Results of Operations(Note: % of change from previous fiscal year)

Net SalesYear ended March 31, 2010
Year ended March 31, 2009

Note:

Ordinary Income%

Millions of yen%

177,829
175,944

1.1
2.2

18,094
14,77522.5
8.0

Earnings
per Share
Year ended March 31, 2010
Year ended March 31, 2009

Operating Income

Millions of yen

Millions of yen

14,9089,890

Ratio of Net
Income toShareholders’EquityDilutedEarnings per
share

Net Income%

Millions of yen

50.7
2.3

7,252
4,530

%

60.1
1.7

Ratio of Operating
Income to Net
Sales

Ratio of Ordinary
income to Total
Assets

Yen

Yen

%

%

%

114.3571.41

114.14
-

6.9
4.2

4.2
2.9

10.2
8.4

Equity in profit (loss) of affiliate Year ended March 31, 2010:(1,329) million yen

Year ended March 31, 2009: 88 million yen(2) Consolidated Financial Position

Total Assets
Year ended March 31, 2010
Year ended March 31, 2009
Note:

Equity:Year ended March 31, 2010:

Net Assets

Net Assets per
Share

Equity Ratio

Millions of yen

Millions of yen

383,396
330,640

116,070
96,56029.8
28.7

Year ended March 31, 2009:

95,049 million yen

114,309 million yen%

Yen

1,802.33
1,498.47(3) Consolidated Cash Flows

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

26,24018,851(44,994)(21,186)

30,315786

56,18845,352

Year ended March 31, 2010
Year ended March 31, 2009

Cash and cash
equivalents

2. Dividends
Annual dividends per shareFirstquarter
Yen

Secondquarter
Yen

Thirdquarter
Yen

Year-end
Dividends

Annualdividends

Yen

Yen

-

32.00
23.50
23.50

-

0.00
29.50
30.50

32.00
53.00
54.00

Year ended March 31, 2009
Year ended March 31, 2010
Year ending March 31, 2011
(Forecast)

Annual totalof dividends(Consolidated)%

Millions of yen

2,030
3,361

Ratio ofdividends to Net
Assets(Consolidated)

Pay-out
ratio

%

44.8
46.4
43.4

1.9
3.2

3. Forecast of Consolidated Financial Results for the Year ending March 31, 2011 (From April 1, 2010 to March 31, 2011)
Operating
Ordinary
Earnings
Net Sales
Net Income
per Share
IncomeIncomeMillionsof yen%Millionsof yen%Six months ending Sept. 30, 2010
Year ending March 31, 2011

Millionsof yen%Millionsof yen%Yen

98,00012.1
7,800 (15.8)
6,600
(5.7)
3,300
(5.6)
52.03
206,000
15.8
17,200(4.9)
15,300
2.6
7,900
8.9
124.56
Note: The % displays in the line of six months ending Sept. 30, 2010 show increase/decrease ratio against the six months
ended Sept.30, 2009. The % displays in the line of Year ending March 31, 2011 show increase/decrease ratio against theyear ended March 31, 2010-1-

4. Others(1) Change in significant subsidiaries during the current period(Changes in specified subsidiaries that caused a change in the scope of consolidation): No(2) Changes in accounting principles, procedures or presentation for consolidated financial statements(to be stipulated in significant matters for preparation of consolidated financial statements)[1] Changes by a newly issued accounting pronouncement: Yes[2] Changes other than [1]: No(Note) Please see page 21 “Change in significant matter of basis of preparation for consolidated financial
statements” for further details.
(3) Issued shares (Common stock)[1] Number of issued shares at end of the period (Including treasury stock):
Year ended March 31, 2010: 63,878,505 sharesYear ended March 31, 2009: 63,878,505 shares
2) Number of treasury stock at end of the period:
Year ended March 31, 2010: 455,328 sharesYear ended March 31, 2009: 447,874 shares(Note) Please see page 31 “Per share information” to confirm the share numbers to be basis of calculation of Earning pershare (Consolidated).

(Reference) Overview of the unconsolidated financial results
1. Unconsolidated Results for the year ended March 31, 2010 (From April 1, 2009 to March 31, 2010)(1) Results of Operations(Note: % of change from previous fiscal year)

Net Sales

Operating Income

Millions of yen

Year ended March 31, 2010
Year ended March 31, 2009

137,844
135,256%

Millions of yen

1.9
0.2

12,935
10,161

Earnings
per Share
Year ended March 31, 2010
Year ended March 31, 2009

Ordinary Income%

Millions of yen

27.3(17.2)

11,4818,265

Net Income
%

38.9
(4.1)

Millions of yen

6,930
540

%

(88.8)

Diluted Earnings
per share

Yen

Yen

109.268.52

109.07-(2) Financial Position

Total Assets
Year ended March 31, 2010
Year ended March 31, 2009
Note:

Equity:Net Assets

Millions of yen

Millions of yen

332,758
282,408

123,902109,206

Year ended March 31, 2010: 123,902million yen

Net Assets per
Share

Equity Ratio
%

37.2
38.7

Year ended March 31, 2009:

Yen

1,953.59
1,721.67

109,206 million yen

2. Forecast of the Unconsolidated Results for the Year ending March 31, 2011 (From April 1, 2010 to March 31, 2011)

Operating
IncomeNet Sales
Millionsof yen%Millionsof yenOrdinary
Income%Millionsof yenEarnings
per
Share

Net Income%

Millionsof yen%Six months ending Sept. 30, 2010

Yen

72,000
7.0
6,000
(7.3)
5,100
5.0
3,000
(3.3)
47.30
147,000
6.6
13,2002.0
12,000
4.5
7,200
3.9
113.52
Note: The % displays in the line of six months ending Sept. 30, 2010 show increase/decrease ratio against the six months
ended Sept.30, 2009. The % displays in the line of Year ending March 31, 2011 show increase/decrease ratio against theyear ended March 31, 2010
Year ending March 31, 2011

*Disclaimer regarding projection information including appropriate use of forecasted financial results, and other special notes
The projection figures shown above are based on information that was available at the time of preparation and may containcertain uncertainties. Actual performance and other factors may differ from these projections due to changes in circumstancesand other developments. More information concerning these forecasts can be found in section 1. Business results on page 3 in
the attachments.

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1. Business Results(1) Analysis concerning business results[1] Overview of business results for the current period
In the period under review (the year ended March 31, 2010), the world economy partially or gradually
recovers from recession brought by the financial crisis, pulled by economic measures in major countries
and economic growth in Asian emerging market. In Japan’s economy, however, the business environment
still remains severe not being able to overcome the future uncertainty, while there was pickup in business
investment and personal consumption, supported by expansion in exports to emerging countries andincrease in business earnings brought by them.
Under such situation, we have promoted to develop advanced medical equipment, expand thepharmaceutical business, increase productive efficiency and step up the sales force, so as to improvebusiness performance.
The overviews of the results by segment in the current year are as follows.
a. Medical equipment division
As for the domestic sales, the market and business conditions became more and more server
because health industry including medical institutions are urged to improve business efficiency under
the promotion of medical system reform aimed at controlling medical expenses. Under suchcircumstances, we showed consistent growth of sales and profit in each field of injection andinfusion-related products such as product for safety-use product and enteral nutrition-related product,
medical-equipment-related products like dialysis system, examine-related products like blood collection
tube, blood collection needle and blood glucose meter, products related to ventricular assist device andproducts related to artificial heart-lungs, and vascular-related products like guiding catheters andblood-clot trapping catheters by means of more active sales promotion and improvement in sales
efficiency.
In the international business, on the other hand, though we were affected by the appreciation of the
yen against U.S. dollar and euro, we have strengthened on-site-based sales activities in China andperformed selling elaborations and price increase as well as promoted actively inventory reduction,
large cost saving, and re-examination of profitability by each product in each market. As a result, theprofit largely increased in spite of decrease in sales amount, while sales quantity showed large
increase in our main product dialyzer, dialysis machine, AVF, injection needle as well as
diabetes-related products have grown steadily.
As a result, net sales of this division decreased 2.3% from the previous period to 110,393million yen.
b. Pharmaceutical division
We advanced the sales of characteristics drugs and medicines, supported by the policies for the
popularization of generic products under the advancement of aging society and increase of theestablishments introducing DPC(Diagnostic Procedure Combination system) which is a comprehensive
reimbursement system of medical cost for acute stage inpatient. As a result, we showed steady growthin sales of liquid-and-powder double-bag kits, pre-mixed-bag kits, injectable drug such as
plastic-ampoules, oral drug such as orally disintegrating tablets and extended-release tablets, as well
as dialysis-related products such as kit product of substitution fluid for hemofiltration andhemodiafiltration. We also succeeded to build up the structure which enables us to stably supply thehigh-quality products as the largest contract manufacturer group of pharmaceutical products in Japan,
as we have started the contract-manufacturing of steroid injectable drug and promoted to win businesswith major drug companies and new business in oral drug, while started building the new plant for
infusion solution preparation.
As a result, net sales of this division increased 10.0% from the previous period to 57,978 million
yen.

- 3-

c.

Glass & Materials division
In the filed of glass for pharmaceutical purposes, the domestic sales of glass tubes for ampouledecreased due to the changes of forms of container and drop of production demand, on the other hand,the business of glass tubes and bottles have relatively done well succeeding oversea sales of glass
tubes and conversion deal from automatic bottles to glass bottles.
In the field of other glass & materials products, the export of glass for thermos bottles mainly to Middle
East Market decreased due to the worldwide economic stagnation. The sales of glass for lighting
purposes to automobile-related industries showed a recovery in sales quantity by production increasein domestic automobile, however, the sales of products related to backlight for LCD decreased due tothe production shift to overseas locations and the unexpected advance in market penetration of LED
products.
As a result, net sales of this division decreased 9.3% from the previous period to 8,668 million yen.

d. Other division
Net sales of other division, consisting mainly of sales of machine for manufacture of medical
equipment and real estate rentals, increased 13.6% from the previous period to 789 million yen.
As a result, total net sales increased 1.1% from the previous period to 177,829 million yen.
Operating income increased 22.5% from the previous period to 18,094 million yen due to saving ofselling, general and administrative expenses, ordinary income increased 50.7% from the previous
period to 14,908 million yen due to decrease of non-operating expenses such as foreign exchange
losses, and net income increased 60.1% from the previous period to 7,252 million yen.
[2] Prospects of business results for the fiscal year ending March 31, 2011 including segment information
Although it might be assumed that the world economy in the future would be continuously pulled by
the economic growth in emerging countries, we prospect that severe circumstance would continue notbeing able to find a road map to overcome deflation as the situation at which increase of over credit
risk and growth of inflation fear are partially looked does not allow optimism as well as a fear of
appreciation in yen against the dollar and oil price is still smoldering in Japan’s economy.
Under such circumstances, we will aim to improve expansion and efficiency in production and sales
continuously and aggressively develop new business field so as to improve business performance.
Under projection of the foreign exchange rate of 90 yen per U.S. dollar, we project the consolidated
net sales of 206,000 million yen to increase 15.8% compared with the period under review, operating
income of 17,200 million yen to decrease 4.9% compared with the period under review, ordinary
income of 15,300 million yen to increase 2.6% compared with the period under review, and net incomeof 7,900 million yen to increase 8.9% compared with the period under review, for the year ending
March 31, 2011.
Projections on net sales by segments based on new criteria are as follows:
Medical Equipment division:
Pharmaceutical division:
Glass & Materials division:
Other division:

140,000 million yen(to increase 17.0% compared with the previous period)
40,000 million yen(to increase 16.9% compared with the previous period)
25,700 million yen(to increase 4.3% compared with the previous period)
300 million yen(to decrease 23.2% compared with the previous period)-4-

(2) Analysis concerning financial position (consolidated)[1] Analysis concerning the conditions of assets, liabilities, net assets and cash flows
Total assets increased 52,756 million yen from the end of the previous period to 383,396 million yen.
Current assets increased 19,063 million yen to 179,928 million yen, and Noncurrent assets increased
33,692 million yen to 203,468 million yen.
Main reason for the increase in current assets was that cash and deposits increased 10,066 million yen,
Notes and accounts receivable-trade increased 5,356 million yen and merchandises and finished goods
increased 2,744 million yen, and main reason for the increase in noncurrent assets was that investment
securities increased 36,005 million yen.
Total liabilities increased 33,245 million yen to 267,325 million yen. Current liabilities increased 23,408
million yen to 138,204 million yen, and noncurrent liabilities increased 9,836 million yen to 129,121
million yen. Current liabilities increased mainly due to the increase of 16,263 million yen in short-termloans payable and the increase of 10,000 million yen in commercial papers and main reason for theincrease in noncurrent liabilities was that deferred tax liabilities increased 6,857 million yen and long-termloans payable increased 7,827 million yen.
Net assets increased 19,510 million yen to 116,070 million yen. Shareholders’ equity increased 5,749
million yen to 104,993 million yen, and valuation and translation adjustments increased 13,511 million
yen to 9,316 million yen. Shareholders’ equity increased mainly due to the increase of 5,761 million yen
in retained earnings. The main reason for the increase in valuation and translation adjustments was thatthe valuation difference on available-for-sale securities increased 10,025 million yen and foreign currencytranslation adjustment increased 3,485 million yen.
The ending balance of cash and cash equivalents in the period under review increased 10,835 million
yen to 56,188 million yen.
The conditions and main factors of each cash flow during the period under review were as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 26,240 million yen. The main accounts of cash inflow
were net income before adjustment of taxes, 13,870 million yen, depreciation and amortization, 18,420
million yen. The main accounts of cash outflow were increase of trade notes and accounts receivable
7,035 million yen and payment of corporate income tax, 4,236 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 44,994 million yen. The main account of cash outflow was
payments for investment securities 20,646 million yen and acquisition of fixed assets 26,071 million yen.
(Cash flows from financing activities)
Net cash provided by investing activities was 30,135 million yen. The main accounts of cash inflow
were net increase in short-term loans payable, 13,712 million yen, increase in commercial paper, 10,000
million yen, proceeds from long-term loans payable, 29,111 million yen, and proceeds from issuance ofbonds, 17,971 million yen. The main accounts of cash outflow were repayment of long-term loans
payable, 18,757 million yen, and redemption of bonds, 20,140 million yen.

-5-

[2] Trend of the cash flow indicators

Shareholders’ equity ratio (%)
Ratio of market value ofshareholders’ equity (%)
Debt redemption (years)
Interest coverage ratio

The 54th period
Year ended
March 31, 2007

The 55th period
Year ended
March 31, 2008

The 56th period
Year ended
March 31, 2009

The 57th period
Year ended
March 31, 2010

37.3

33.8

28.7

29.8

43.4

31.6

29.4

29.9

8.3
8.5

15.6
5.1

8.2
6.8

7.1
11.4

Note: Shareholders’ equity ratio = Shareholders’ equity / Total Assets
Ratio of market value of shareholders’ equity = Aggregate market value of the outstanding
shares / Total Assets
Debt redemption = Interest-bearing liabilities / Cash flow from operating activities
Interest coverage ratio = Cash flow from operating activities / Interest payments- Each indicator is calculated from consolidated financial data.
- Aggregate market value of the outstanding shares is calculated as the share price at the fiscal
year-end multiplied by the number of issued shares (excluding treasury stock).
- Cash flow from operating activities is taken from cash flows from operating activities on the
consolidated statement of cash flows. Interest-bearing liabilities represent all liabilities on the
consolidated balance sheets for which interest is payable. The amount of interest payments istaken from the payments of interests on the consolidated statement of cash flows.
(3) Basic Policies on Distribution of Profits and Dividends for years ended March 31, 2010 and ending March
31, 2011.
As we position profit return in the important administrative measures, our policy is that 50% of the
non-consolidated net income is to be distributed to shareholders. Orienting a rational system for distributionof profits linked to operation results, not only bonuses of directors and statutory auditors but also
employees’ bonuses are determined based on the business performance of the Company.
Retained earnings are to be invested in the sales and production facilities as well as in research anddevelopment, in view of enlarging the firm management basis and long-term business developments, so as
to ensure stable profits and continuous growth.
Annual dividends are calculated to be 53.00 yen per share. As we already paid interim dividends of 23.50
yen per share, year-end dividends are to be 29.50 yen per share to be proposed to the Company’s 57th
ordinary general meeting of shareholders.
Dividends for year ending March 31, 2011 are expected to be made according to the above-mentioned
policy.

-6-

2. Corporate GroupOur group consists of the Reporting Company (“the Company”), its 32 subsidiaries and 2 affiliates, and isprimarily engaged in manufacture and sale of medical equipment, pharmaceutical products and glass andmaterial products.
Positioning of each company in connection with the businesses of our group and the relation to thebusiness segments are as follows:<Medical Equipment Division>
Domestic:

The Company and Nipro Medical Industries, Ltd. manufacture medical equipment, and theCompany sells medical equipment manufactured by its foreign subsidiaries.
Cell Science & Technology Institute, Inc., an affiliate, develops, manufactures and sells
cell-culture-related products.

Overseas:

Nipro (Thailand) Corporation Ltd. (Thailand), Nipro (Shanghai) Co., Ltd. (China) and Nipro
Medical LTDA. (Brazil), and other manufacturing subsidiary purchase some of raw materials
and machinery for their production from the Company, manufacture medical equipment, andsell through the Company and its subsidiaries as well as locally on their own.
Nipro Europe N.V. (Belgium), Nipro Medical Corporation (U.S.A.), and Nipro Asia Pte. Ltd.
(Singapore) and other sales subsidiaries sell medical equipment etc. in the areas of theirlocations.
Nipro Diabetes Systems, Inc. (U.S.A.) and Home Diagnostics, Inc. (U.S.A) develop and selldiabetes-related products.

<Pharmaceutical Division>
The Company, Nipro Pharma Corporation and Nipro Genepha Corporation, Zensei
Pharmaceutical Industries Co., Ltd and Nipro Patch Co., Ltd. manufacture and sell
pharmaceutical products. In addition, Tohoku Nipro Pharmaceutical Corporation manufactures
pharmaceutical products.
Bipha Corporation, an affiliate accounted for by the equity method, is engaged in researchand development, manufacture and sale of pharmaceutical products such as blood products.

<Glass and Materials Division>
Domestic:
Overseas:

The Company sells glass tubes as well as manufactures and sells glass products.
Shanghai Nissho Vacuum Flask Refill Co., Ltd. (China) sells internal glass sections of
vacuum flask and other glass products.

<Other>
The Company manufactures (purchases, in some cases) and sells machinery for
manufacture of medical equipment and is engaged in leasing of real estate properties.
Nissho Insurance Services Co., Ltd. operates non-life insurance agency mainly for the groupcompanies.
Sanri Kosan Co., Ltd., the other related company, is engaged in leasing of real estate
properties.
The above explanations are illustrated as follows:-7-

(Domestic)(Overseas)
Medical Equipment Division<Manufacture and Sale>◎Nipro (Thailand) Corporation Ltd.
◎Nipro (Shanghai) Co., Ltd.
◎Nipro Medical LTDA.
And 1 other subsidiary

Medical Equipment Division<Manufacture>◎Nipro Medical Industries, Ltd.
<Development,
and Sale>

Manufacture■Cell Science & Technology
Institute, Inc.

<Sale>◎Nipro Europe N.V.
◎Nipro Medical Corporation◎Nipro Asia Pte. Ltd.
And 11 other subsidiaries

Pharmaceutical Division<Development and Sale>◎Nipro Diabetes Systems, Inc.
○Home Diabetes Systems, Inc.
And 3 other subsidiaries<Manufacture and Sale>◎Nipro Pharma Corporation<Manufacture and Sale>◎Zensei Pharmaceutical Industry Co., Ltd.
◎Nipro Patch Co.,Ltd.
<Manufacture>◎Tohoku Nipro
Pharmaceutical Corporation<Development,
and Sale>

Manufacture

Nipro Corporation◎Nipro Genepha Corporation
Glass & Materials Division<Sale>◎Shanghai Nissho Vacuum Flask
Refill Co., Ltd.

And 1 other subsidiary□Bipha Corporation

Other

Supply of products andmerchandises<Non-life insurance agency>

Supply of raw materials○Nissho Insurance Services Co.,
Ltd.

Other transactions

Other<Rental of real estate>△Sanri Kosan Co., Ltd.

-8-◎

Consolidated subsidiary○

Unconsolidated subsidiary□■

Affiliate accounted for by theequity method
Affiliated company△

Other related company

3. Management Policies(1) Basic Policies of Management
Since our foundation of year 1954 with concept of “technology innovation”, we have grown by
pursuing the technologies to produce unique products which can always solve QOL (Quality of Life)of patients and subjects in Medical treatment sites, under philosophy in contributing to the society
through corporate activities.
As a management structure considering compatibility between “stability” and “growth” that is mostimportant for a company, we implement the “performance-linked remuneration system” that is therule of profit sharing among shareholders, employees and management, and carry out active
business operations, holding the employees responsible for boosting the performance of individual
businesses.

(2) Target Management Indicators
Our performance targets were to achieve 200,000 million yen of consolidated net sales, 20,000
million yen of ordinary income and 10% of return on equity (ratio of net income to shareholders’equity) by the fiscal year 2010, but we set up new targets to achieve 500,000 million yen of
consolidated net sales and 40,000 million yen of ordinary income, in order to promote further
growth of business. To realize this new goal, we are going to move towards steady businessdevelopment by means of improved management and efficiency.
(3) Medium- to Long-term Management Strategies
The Group adopts a basic policy and corporate strategies which aim to expand sales by means ofstrengthening cost-competitiveness in response to world markets, intensively increasing the
production capacity in the fields expected to expand in quantity.
In Medical Equipment division, we will try to obtain market share by expanding the range ofmerchandise of dialysis-related products centered on our main product, dialyzer, diabetes related
products and vascular-related product. In the international development we will promote both sales
and manufacturing in each place, especially in the developing countries which expanded demand is
expected in the future, including India and China, on the basis of local production for local
consumption.
In the Pharmaceutical division, we enhance contract manufacturing business by dealing withvarious contract manufacturing needs, utilizing the Group’s features of research and development
and productions systems in all pharmaceutical fields. In the field of generic drug, we will put forward
to develop various sales routes such as dispensing pharmacy group and DPC Hospitals which
repute medical costs under the Diagnosis Procedure Combination; In addition, we will cut off thecost completely and reinforce the responding capabilities to the price. Also, we will promoteresearch and development including Biosimilars, artificial blood and DDS (Drug Delivery System)
area, entering oversea business expansion in the view.
In the Glass and Materials division, we continue to drive establishment and innovation in glassprocessing technologies and work on development and expansion of pharmaceutical container andthe other glass products. In addition, we will try overseas manufacturing and sales inpharmaceutical container such as ample and glass bottle.
(4) Issues and Challenges that the Group Faces
In the domestic business of the Medical Equipment division, we will put effort into development of
products with least adverse impact on environment and medical safety-conscious design (infection
prevention), work on development of the products friendly to healthcare professionals, patients andglobal environment and positively continue research and development, market development andsales reinforces.

-9-

As we will start to sell diabetes-related-products manufactured by Home Diagnostics, Inc., which
we acquired during the current fiscal year and which name is to be changed into Nipro Diagnostics
Inc., in other oversea markets than United States by utilizing the Group’s global sales network, wewill promote the sales actively in diabetes field further to dialysis field to be a strong presencecompany.
Meanwhile, we effort to shore up market share of our main dialysis field by strengthening direct
selling system in China, India, Middle East, Africa and South America where demand rapidly
expanding as well as expand sales in European Market where we will release the newearth-friendly dialyzer in order to differentiate to ourselves and launch new type dialysis machine.
Although we prospect that the negative impact brought by high-yen exchange rates would continue,
we endeavor to increase sales and profit more based on our strong selling operation which havebeen reinforced by countermeasures for high-yen exchange rates.
In the Pharmaceutical division, we are challenging to build contract manufacturing facilities for oral
drug of high biological activity, anticancer drug and biosimilar which are highly demanded inmarket.
In the Glass and Materials division, we will continue to drive particularly establishment andinnovation in glass processing technologies and expand selling to not only domestic
pharmaceutical companies but also oversea pharmaceutical companies. For oversea market
development, we will promote joint venture business and so on. Also, in terms of the glass forlighting purposes, we will strive to increase profits, seeking sales outlet for foreign market newly.

- 10 -

4. Consolidated Financial Statements(1) [ Consolidated Balance Sheets ](Amount: million yen)

As ofMarch 31, 2009
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery, equipment and vehicles, net
Land
Lease Assets
Accumulated depreciation
Lease Assets, net
Construction in progress
Other
Accumulated depreciation and impairment loss
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Lease Assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets- 11 -

As ofMarch 31, 2010

49,20050,94735,759
6,410
8,944
2,846
7,167
(410)
160,865

59,26656,30338,503
6,192
10,008
3,149
6,937
(432)
179,928

101,361(52,229)
49,131
107,843(71,319)
36,524
19,45993(11)81
16,84723,394(18,699)
4,694
126,739

107,011(56,495)
50,515
117,534(81,395)
36,13819,766
1,393
(173)
1,220
11,99225,032(20,456)
4,575
124,208

851
1,597
2,448

561
78
1,736
2,376

36,869
140
4,229
2,561
(3,214)
40,587
169,775
330,640

72,875
334
4,071
2,788
(3,186)76,883
203,468
383,396

(Amount: million yen)

As ofMarch 31, 2009
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccurued directors' bonuses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for loss on business liquidation
Notes payable-facilities
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds
with subscription rights to shares
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on litigation
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets- 12 -

As ofMarch 31, 2010

28,332
48,179
6,140
72
4,437
2,281
1,615
3
1,954
14,452
7,336
114,795

29,20364,442
10,00010,160
318
5,792
204
4,932
1,758
23
1,954
3,869
5,543
138,204

35,16028,00014,00015,00065,012
92
913
1,888
631
170
1,416
119,284
234,080

72,839
1,098
7,771
1,972
614
170
1,655
129,121267,325

28,66329,97341,457(849)
99,244

28,66329,972
47,219(862)
104,993

4,998(9,193)(4,195)
1,511
96,560330,640

15,024(5,708)9,316
1,761
116,070
383,396(2) [ Consolidated Statements of Income ](Amount: million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Stock issuance cost
Bond issuance cost
Depreciation
Foreign exchange losses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on prior period adjustment
Settlement received
Compensation income
Surrender value of insurance
Other
Total extraordinary income- 13 -

FY2008(From April 1, 2008
to March 31, 2009)
175,944
124,395
51,54936,774
14,775

FY2009(From April 1, 2009
to March 31, 2010)
177,829
126,144
51,68533,591
18,094

438
740
88
554
1,820

236
619
457
1,314

2,376
20
358
3,745
203
6,705
9,890

2,251
21
34
187
455
1,329
219
4,499
14,908

279
269
727
200
187
1,663

25
508
113
15
193
109
21
986

(Amount: million yen)
FY2008(From April 1, 2008
to March 31, 2009)
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Impairment loss
Loss on abandonment of inventories
Abnormal manufacturing cost
Loss on valuation of inventories
Loss on reduction of noncurrent assets
Provision for directors' retirement benefits for prior periods
Corresponding loss to compensation income
Loss on voluntary product recall
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income- 14 -

0
292
163
269
538
253
269
51
336
2,174
9,379
4,037
629
4,666
182
4,530

FY2009(From April 1, 2009
to March 31, 2010)
3
337
23
185
541
508
190
120
115
2,024
13,870
6,842
(475)
6,367
251
7,252

(3) [ Consolidated Statements of Shareholders' Equity ](Amount: million yen)
FY2009(From April 1, 2009
to March 31, 2010)

FY2008(From April 1, 2008
to March 31, 2009)
Shareholder's equity
CapitalBalance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Capital Surplus
Balance at beginning of year
Increase(decrease) during the period
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Earned surplus
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Change of scope of consolidation
Net increase(decrease) during the period
Balance at end of year
Treasury stock
Balance at beginning of year
Increase(decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Total Shareholders' equity
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Net increase(decrease) during the period
Balance at end of year

- 15 -

28,663

28,663--

28,663

28,66329,97529,973(2)(2)
29,973(0)(0)
29,97239,476

41,457(2,633)
4,530
83
1,981
41,457(1,490)7,252
5,761
47,219

(794)

(849)

(73)
18
(54)
(849)

(13)
1
(12)
(862)

97,32099,244(2,633)
4,530
(73)
15
83
1,923
99,244(1,490)
7,252
(13)
1
5,749
104,993

FY2008(From April 1, 2008
to March 31, 2009)
Valuation and translation differences
Valuation differences of available-for-sale securities
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Foreign currency translation differences
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total valuation and translation differences
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Minority interests
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total net assets
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year

- 16 -(Amount: million yen)
FY2009(From April 1, 2009
to March 31, 2010)

18,947

4,998(13,949)(13,949)
4,998

10,025
10,02515,024

1,887(9,193)(11,080)(11,080)(9,193)

3,485
3,485
(5,708)20,835(4,195)(25,030)(25,030)(4,195)

13,511
13,511
9,316

1,388

1,511

122
122
1,511

250
250
1,761

119,544

96,560(2,633)
4,530
(73)
15
83

(1,490)
7,252
(13)
1
-

(24,907)(22,983)
96,56013,761
19,510116,070

(4) [ Consolidated Statements of Cash Flows ](Amount: million yen)
FY2008(From April 1, 2008
to March 31, 2009)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Equity in (earnings) losses of affiliates
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other loss (gain)
SubtotalInterest and dividends income received
Interest expenses paid
Other proceeds
Other payments
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Proceeds from governmental subsideies
for investment in property and equipment
Net Decrease (increase) in short-term loans receivable
Payments of loans receivableCollection of loans receivable
Other payments
Other proceeds
Net cash provided by (used in) investment activities- 17 -

FY2009(From April 1, 2009
to March 31, 2010)

9,379
18,109
163
374
(88)
351
(1,178)2,376
2,037(2,527)(6,539)
1,556
(528)
525
(405)
23,606
1,041(2,784)732(222)(3,521)
18,851

13,87018,420
23
294
1,329
(25)
(856)
2,251
38
(7,035)(2,856)
4,987
(676)
1,447
698
31,913
1,009(2,304)456(598)(4,236)
26,240(4,238)2,055(374)(20,856)389(2,889)3,689(20,646)(26,071)
58

1,838

710

(49)
48
(0)
1
(21,186)

196
(201)
0
159
(44,994)

(Amount: million yen)
FY2008(From April 1, 2008
to March 31, 2009)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds form issuance of bonds
Redemption of bonds
Proceeds from stock issuance to minority shareholders
Decrease (increase) in treasury stock
Repayments of finance lease obligations
Cash dividends paid
Cash dividends paid for minority shareholders
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Cash and cash equivalents at end of period- 18 -

FY2009(From April 1, 2009
to March 31, 2010)

2,266
27,300(15,881)
4,979(15,150)
9
(59)
(46)
(2,631)(0)786(1,566)(3,114)47,656

13,712
10,00029,111(18,757)
17,971(20,140)(15)(234)(1,489)(2)(21)
30,135(545)
10,83545,352809-

45,35256,188(5) Notes related to going concern
N/A(6) Basis of Preparation for the Consolidated Financial Statements
1 ) Scope of Consolidation[1] Consolidated subsidiaries: 24
Name of representative consolidated subsidiaries.
・・・・

Nipro Medical Industries, Ltd.
Nipro Europe N.V.
Nipro Pharma Corporation
Nipro Patch Co.,Ltd.

・ Nipro (Thailand) Corporation Ltd.
・ Nipro Medical Corporation
・ Tohoku Nipro Pharmaceutical Corporation[2] Unconsolidated subsidiaries: 8Name of representative unconsolidated subsidiary・ Home Diagnostics, Inc.
The unconsolidated subsidiaries are small-sized companies, whose combined total assets, net sales,
net income and earned surplus in the aggregate (averaged for recent 5 years) are not material to theconsolidated financial statements.
2 ) Application of Equity Method
Number of affiliate accounted for by the equity method: 1

Bipha Corporation

Number of affiliate not accounted for by the equity method: 1
Cell Science & Technology Institute, Inc.
The equity method is not applied to the 8 unconsolidated subsidiaries and 1 affiliate company, since
they are not material to the consolidated net income (amounts worth to equity) and earned
surplus(amounts worth to equity) etc., either individually or in the aggregate.
3 ) Accounting Period of Consolidated Subsidiaries
Among the consolidated subsidiaries, accounts closing date of the foreign subsidiary is December 31.
Consolidated financial statements as of that date are used in preparing for consolidated financial
statements, and necessary adjustments are made to reflect significant transactions that occurred
between December 31 and March 31.
4 ) Accounting Principles and Practices[1] Valuation standards and methods for significant assets
Securities
Available-for-sale securities:
Securities with market
quotations ························ Valued at the market price quoted on the balance sheet date.
(Differences in valuation are presented as a component ofshareholders’ equity. Costs are determined by the weighted
average method.)
Securities withoutmarket quotations ············ Valued at cost by the weighted average method
Inventories
Valued at cost by the weighted average method (Writing down method below cost to the net
selling value for decreased profitability)- 19 -

[2] Method of depreciation and amortization for significant depreciable assets
Tangible fixed assets:······ Declining-balance method(Excluding lease assets)
However, buildings acquired after April 1, 1998 (excluding
attached structures), are depreciated by straight-line method.
The foreign subsidiaries use straight-line method in accordancewith the tax laws of their countries.
Lease assets
Lease assets under the finance lease transaction that does not transfer ownership
Recorded by straight-line method its useful lives are equals to thelease term and the residual values are equal to zero.
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 March 31, 2008.
[3] Method of treating significant deferred asset
Bond issue cost:
Record in full as expenses on expenditure[4] Standards for recognition of significant allowances
Allowance for
doubtful accounts·············In order to cover the probable losses on collection, an allowancefor doubtful accounts is provided for the estimated amount of
uncollectible receivables. For general receivables, the amount ofprovision is based on historical write-off rates, and for the doubtfulreceivables, based on the specific collectability.
Provisions for bonuses············ In order to cover the payment of bonuses to employees, anallowance is provided for the estimated amount of bonuses to be
paid, prorated for the consolidated accounting period.
Provisions for directors’
bonuses ······························ In order to cover the payment of bonuses to directors and corporate
auditors, an allowance is provided for the estimated amount ofbonuses to be paid, prorated for the consolidated accounting period.
Provisions for loss on
business liquidation ············ In connection with withdrawal from retail business which we sold theshares of the consolidated subsidiaries, the estimated loss at theend of the consolidated accounting period is posted for disposal ofland, building and other properties to be sold accordingly.
Provision for retirement
benefits ································

Provision for directors’
retirement benefits ················An allowance is provided for employee’s pension and severance
payments based on the estimated amounts of projected benefit
obligation and plan assets at the end of the consolidated accounting
period.
Past service liabilities are expenses mainly for five years using thestraight line method.
Actuarial difference is expensed in the following consolidated
accounting period after the year of such recognition, using thestraight-line method for five years.

An allowance is provided for severance indemnity for directors
and corporate directors based on the amounts to be paid at the endof the consolidated accounting period.

Provision forloss on litigation ................... In order to cover the probable losses on lawsuit, an allowance forloss is provided for the estimated amount acceptable as needed.

- 20 -

[5] Standards for translation of significant assets and liabilities denominated in foreign currencies into
Japanese Yen
Monetary assets and liabilities denominated in foreign currencies are translated to Japanese yen
using the spot exchange rate of the consolidated balance sheet date, and translation differences arerecognized as gains or losses. The assets and liabilities of foreign subsidiaries etc. are translated
to Japanese yen using the spot exchange rate of their balance sheet date, while revenues andexpenses are translated using the average rate for the period. Translation differences are included
in foreign currency translation adjustments in the Net Assets section.
[6] Other significant basis on preparation for consolidated financial statements
Consumption taxes
Consumption taxes are excluded from revenues and expenses accounts.
5 ) Evaluation of assets and liabilities of the consolidated subsidiaries
Partial fair market value method is used for valuation of assets and liabilities of consolidated
subsidiaries.
6 ) Amortization of goodwill
Goodwill is amortized using the straight-line method for five years.
7 ) Range of cash and cash equivalent carried on the consolidated cash flow statement.
Cash and cash equivalent carried on the cash flow statement consist of cash on hand, cash in banks
that is able to withdraw as needed, and short-term investment that will be matured within three months
after acquisition, easy to be converted into cash without much risks from fluctuation of prices.
(7) Change in significant matter of basis of preparation for consolidated financial statements(Change in Accounting Method)
The adoption of Partial Amendments to Accounting Standard for Retirement Benefits (Part3)
We have adopted the “Partial Amendments to Accounting Standard for Retirement Benefits(Part3)” (ASBJ Statement No. 19, issued on July 31, 2008) from this consolidated accounting year.
No affection against profit and loss will be given by this adoption.

(8) Notes to the consolidated financial statements(Notes to the Consolidated Balance Sheets)(Previous period)
1) Pledged assets

15,317

mil.yen(Current Period)
9,1952) Obligations under guarantee contracts

53-3) Discounted notes receivable32

34

mil.yen4) Accounts related to unconsolidated subsidiaries and affiliate companies
Investment securities (stock)3,666

mil.yen

22,786

mil.yen(Notes to the Consolidated Statements of Income)Research and development expenditure included in selling
general and administrative expenses and manufacturing cost.

- 21 -(Previous period)
5,351 mil yen(Current period)
4,846mil yen

(Notes to the Consolidated Statements of Shareholders’ equity)
Previous period (From April 1, 2008 to March 31, 2009)
1. Sort and total numbers of Shared issues
Sort of shares
Common stock

Number of shares
As of March 31, 2008
63,878,505

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2009
63,878,505

2. Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2008
415,037

Increased
numbers
42,395Decreased
numbers
9,558

Number of shares
As of March 31, 2009
447,874(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

3. Dividends(1) Amount of dividends paid
Decision

Sort of shares

June 26, 2008 at ordinary
general shareholders’ meeting

Common stock

November 11, 2008 at board of
directors meeting

Common stock

Total amount ofdividends paid

Million of yen
602
Million of yen
2,030

Dividends
per shares
Yen
9.50
Yen
32.00

Basis date

Effective date

March 31, 2008

June 27, 2008

September 30, 2008

December 18, 2008

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in thenext consolidated accounting period.
N/A- 22 -

Current period (From April 1, 2009 to March 31, 2010)
1. Sort and total numbers of Shared issues
Sort of shares
Common stock

Number of shares
As of March 31, 2009
63,878,505

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2010
63,878,505

Increased
numbers
8,076

Decreased
numbers622

Number of shares
As of March 31, 2010
455,328

2. Sort and numbers of Treasury stock
Sort of shares
Common stock

Number of shares
As of March 31, 2009
447,874(Note) 1. The increased numbers are of purchase of shares whose number is less than unit amount.
2. The decreased numbers are of selling of shares whose number is less than unit amount.

3. Dividends(1) Amount of dividends paid
Decision

Sort of shares

Total amount ofdividends paid

November 11, 2009 at board of
directors meeting

Common stock

Million of yen
1,490

Dividends
per shares
Yen
23.50

Basis date

Effective date

September 30, 2009

December 9, 2009

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in thenext consolidated accounting period.
Scheduled
Decision

Sort ofsharesProceeds ofdividends

Total amount ofdividends paid

Dividends
per shares

June 25, 2010 atordinary
generalshareholders’ meeting

Commonstock

EarnedsurplusMillion of yen
1,870

Yen
29.50

- 23 -

Basis date

Effective date

March 31, 2010

June 28, 2010

(Segment information)
1. Segment information by business category
FY2008 (From April 1, 2008 to March 31, 2009)(Millions of yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials(1)Sales to third parties

112,969

52,725

9,553

695(2)Inter-segment sales
and transfers

-

0

3,389

112,969

52,726

Operating expenses

96,761

Operating income

Eliminations/Corporate

Consolidated

175,944-

175,94489

3,479(3,479)-12,943785

179,424(3,479)

175,944

48,643

11,170781

157,356

3,812

161,169

16,208

4,082

1,772

4

22,067(7,292)

14,775

120,447

111,202

10,8006,106

248,556

82,084

330,640

9,719

6,963

455

88

17,217891

18,109

13

18

130

-

163

-

163

11,515

20,632134

68

32,350791

33,141

Other

Total

1. Net sales

Total

2. Assets, depreciation andcapital expenditures
AssetsDepreciation
Impairment loss of fixed
assetsCapital expenditures

FY2009 (From April 1, 2009 to March 31, 2010)(Millions of yen)

MedicalEquipment

Pharmaceutical

Glass &
Materials(1)Sales to third parties

110,393

57,9788,668

789(2)Inter-segment sales
and transfers

-

0

4,143

110,393

57,978Operating expenses

92,231

Operating income
2. Assets, depreciation andcapital expenditures

Eliminations/Corporate

Consolidated

177,829-

177,829

108

4,253

(4,253)-

12,811

898

182,083(4,253)

177,82953,353

10,887730

157,202

2,533

159,735

18,162

4,625

1,924

167

24,880(6,786)18,094

152,733

107,875

11,044

5,766

277,419

105,977

383,396

9,050

8,131

371

83

17,637783

18,420

23

-

-

-

23

-

23

9,438

4,674

243

130

14,486722

15,208

Other

Total

1. Net sales

Total

AssetsDepreciation
Impairment loss of fixed
assetsCapital expenditures- 24 -

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 ofusage of the products in the market.
Main products belonging to each business category are as follows:Business
category
MedicalEquipment

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

Pharmaceutical

Half-type and full-type kits, double-bag kits, pre-filled syringes, dialysate
solution, and circulatory drugs, etc.

Glass & Materials

Glass for pharmaceutical containers, glass for thermos bottles, glass forlighting purposes, stoppers for plastic containers and rubber stoppers, etc.

Other

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

2. Operating expenses of “Eliminations/Corporate” for the previous and current consolidated
accounting periods included unallocated corporate costs of 7,292 million yen and 6,786 million
yen, respectively. The unallocated corporate costs consisted primarily of the parent company’s
research and development costs and headquarters administration costs.
3. Assets of “Eliminations/Corporate” for the previous and current consolidated accounting
periods included corporate assets of 82,340 million yen and 106,079 million yen, respectively.
The corporate assets consisted mainly of parent company’s surplus operating funds (cash on
hand and in banks), long-term investment funds (investment securities) and assets related toresearch and development, as well as of the assets belonging to the headquarters administration
department.
4. Depreciation and capital expenditures included long-term prepaid expenses and its amortization.

- 25 -

2. Segment information by geographical area
FY2008 (From April 1, 2008 to March 31, 2009)
Japan

America(Millions of yen)
Asia

EuropeTotal

Eliminations/Corporate

Consolidated

1. Net sales andoperating income
Net sales(1) Sales to third parties

134,330

21,306

12,432

7,875

175,944-

175,944(2) Inter-segment sales
and transfers

30,207822

314,38145,415(45,415)-

Total

164,537

22,12912,43522,257221,359(45,415)

175,944

Operating expenses

144,026

22,721

12,467

20,847200,063(38,894)

161,169

Operating income (loss)

20,510

(591)

(32)

1,409

21,296(6,520)14,775

2. Assets

256,811

3,025

5,081

6,084

271,003

59,637

330,640

FY2009 (From April 1, 2009 to March 31, 2010)
Japan

America(Millions of yen)
Asia

EuropeTotal

Eliminations/Corporate

Consolidated

177,829

1. Net sales andoperating income
Net sales(1) Sales to third parties

139,378

17,833

12,9007,717

177,829-(2) Inter-segment sales
and transfers

29,444591

315,32745,368(45,368)-

Total

168,823

18,425

12,90423,045

223,197(45,368)

177,829

Operating expenses

145,799

18,50912,857

20,856

198,021(38,285)

159,735

Operating income (loss)

23,024

(84)

47

2,188

25,176(7,082)

18,094

2. Assets

276,570

6,268

7,248

10,879300,967

82,429383,396

Notes:·· 1.

Operating expenses of “Eliminations and Corporate” for the previous and current consolidated
accounting periods included unallocated corporate costs of 7,292 million yen and 6,786 million yen,respectively. The unallocated corporate costs consisted primarily of the parent company’s researchand development costs and the headquarters administration costs.

2.

Assets of “Eliminations/Corporate” for the previous and current consolidated accounting periods
included corporate assets of 82,340 million yen and 106,079 million yen, respectively. The
corporate assets consisted mainly of parent company’s surplus operating funds (cash on hand and inbanks), long-term investment funds (investment securities) and assets related to research anddevelopment, as well as of the assets belonging to the headquarters administration department.

3.

Classification of countries or areas is based on geographical proximity.

4.

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- 26 -

3. Overseas sales
FY2008 (From April 1, 2008 to March 31, 2009)

1. Overseas sales(Millions of yen)

America

Europe

Asia

Total

33,291

19,990

10,666

63,948

2. Consolidated net sales
3. Percentage of overseas sales toconsolidated net sales (%)

175,944

18.9％

11.4％

6.1％

FY2009 (From April 1, 2009 to March 31, 2010)

1. Overseas sales(Millions of yen)

America

Europe

Asia

Total

27,864

20,662

10,83559,362

2. Consolidated net sales
3. Percentage of overseas sales toconsolidated net sales (%)

Notes:

1.
2.
3.

36.4％

177,829

15.7％

11.6％

6.1％

33.4％

Overseas sales represent those of the Company and the consolidated subsidiaries to countries
and areas outside of Japan.
Classification of countries or areas is based on geographical proximity.
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- 27 -

(Lease Transactions)1) Finance lease transactions (borrower)
Lease Assets related to the finance lease transaction that does not transfer ownership
Contents of Lease Assets
Tangible Lease Assets
Mainly, host computer and server (Tools, furniture and fixture) at the company
The method of depreciation of the assets under finance lease
Straight-line method its useful lives are equals to the lease term and theresidual values are equal to zero2) We still have adopted the similar manner to an ordinary rental transaction for the finance leasetransactions that do not transfer ownership and the starting dates of the lease transactions were before 31
March 2008, as follows

Previous period

Current period

1,659 mil. yen
1,112
546

1,441 mil. yen
1,106
334

Lease commitments
Due within one year
Due after over one year
Total

290 mil. yen
439
730

260 mil. yen
239
499

Lease payments
Depreciation equivalentInterest expense equivalent

534 mil. yen
494 mil. yen
38 mil. yen

311 mil. yen
225 mil. yen
22 mil. yen

Acquisition cost equivalent
Accumulated depreciation equivalentBook value equivalent

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninths of the amount computed by the declining-balancemethod with 10% of hypothetical residual value for the lease term as remaining life isallocated to each period over the lease term.
Method of calculation of interest equivalent
Difference between total lease payments and acquisition cost equivalent of leased assets
comprises interest expense equivalent, and interest expense equivalent is allocated to eachperiod over the lease term by the interest method.

- 28 -(Tax-effect accounting)
1. Major components of deferred tax assets and liabilities
Previous period(as of March 31, 2009)
Deferred tax assets (current)
Elimination of unrealized profits
Accrued enterprise tax
Provisions for bonuses
Provisions for loss on business liquidation
Accounts receivable
Inventory assets
Tax loss carry forwards
OthersSubtotal
Allowance accountGross deferred tax assets (current)
Offset with deferred tax liabilities (current)
Net deferred tax assets (current)

Current period(as of March 31, 2010)

690
202
653
791
187
186
259
240
3,211
(353)
2,857
(10)
2,846

mil. yen

821
378
706
791
190
164
207
225
3,485
(330)
3,154
(5)
3,149

mil. yen

10
10
(10)
-

mil. yen

5
5(5)

mil. yen

Deferred tax assets (fixed)
Impairment loss
Valuation difference of land
Allowance for doubtful accounts
Provision for retirement benefits
Provision for directors' retirement benefits
Bad debts written off
Tax loss carry forwards
OthersSubtotal
Allowance accountGross deferred tax assets (fixed)
Offset with deferred tax liabilities (fixed)
Net deferred tax assets (fixed)

882
122
1,141
743
255
117
3,215
178
6,658
(3,918)2,740(2,599)140

mil. yen

807
124
1,158
781
249
117
4,121
188
7,550
(4,609)2,940(2,605)334

mil. yen

Deferred tax liabilities (fixed)
Valuation differences on available-for-sale securities
OthersGross deferred tax liabilities (fixed)
Offset with deferred tax assets (fixed)
Net deferred tax liabilities (fixed)

3,422
89
3,512
(2,599)913

mil. yen

10,266
109
10,376(2,605)
7,771

mil. yen

Deferred tax liabilities (current)
Reserve for special depreciation
Gross deferred tax liabilities (current)
Offset with deferred tax assets (current)
Net deferred tax liabilities (current)

2. Reconciliation of the difference between statutory tax rate and effective tax rate after adoption of tax-effect accounting
Statutory tax rate
(Adjustments)
Permanently disallowed items such as entertainment expenses
Permanently non-taxable items such as dividends received
Per capita charges of inhabitants taxes
Difference from applicable tax rate
Unrecognized tax benefits of loss-making subsidiaries
Unrecognized tax benefits of equity loss(Gain)Tax credits on research and development expenses, etc.
Allowance accountAllowed loss on devaluation of consolidated subsidiaries’ stock
Utilization of tax loss carry forwards
Others
Effective tax rate after adoption of tax-effect accounting

Previous period(as of March 31, 2009)40.5 %- 29 -

1.8
(1.4)
1.1
(1.8)
13.7
(0.4)
(5.0)
5.7
(4.9)
(0.3)
0.8
49.8

Current period(as of March 31, 2010)40.5 %
2.5
(1.3)
0.7
(2.2)
7.4
3.9
(2.4)
(0.7)
(2.0)
(0.5)
45.9

(Securities)
1) Available-for-sale securities with market quotations(Unit: Millions of yen)
Current period(as of March 31, 2010)

Previous period(as of March 31, 2009)
Acquisition
cost

Carrying
value onconsolidated
B/S

Difference

Acquisition
cost

Carrying
value onconsolidated
B/S

Difference

Stock
Bonds
Others

6,944-

18,223-

11,278-16,195-41,390-25,195-

Subtotal

6,944

18,223

11,27816,19541,39025,195

Stock
Bonds
Others17,25560

13,54639(3,709)
(21)

8,095
47

7,323
42

(771)
(4)

Subtotal

17,315

13,585(3,730)

8,142

7,365

(776)

Classification

Securities whose carrying value
exceeds their acquisition cost

Securities whose carrying value donot exceed their acquisition cost

Total
24,26031,808
7,548
24,33748,75524,418(Note) “Acquisition cost” in the table is impaired book price.
We accounted for 75 million yen as impairment loss in Stock in Available-for-sale securities withmarket quotations for the current consolidated accounting period.
Impairment loss is recorded on the securities whose fair values at the end of the consolidated
accounting period have declined by more than 50%, unless there is a reasonable contraryevidence, or declined from 30% to 50% unless the values are recognized to be possibly
recoverable.
2. Available-for-sale securities sold during the previous and current periods
Previous period(From April 1, 2008 to March 31, 2009)
Sales
Total gains
Total losses
proceeds---(Unit: Millions of yen)
Current period(From April 1, 2009 to March 31, 2010)
Sales
Total gains
Total losses
proceeds---

3. Securities that do not have market quotations(Unit: Millions of yen)Previous period(as of March 31, 2009)
Carrying value on
Consolidated Balance Sheet

Available-for-sale securities
Unlisted stock
Bonds
Other
Stocks of subsidiaries andaffiliates
Stocks of unconsolidated
subsidiaries
Stocks of affiliated companies
Total- 30 -

Current period(as of March 31, 2010)
Carrying value on
Consolidated Balance Sheet

1,384
10
-

1,302
10
20

213

20,662

3,453

2,124

5,061

24,119(Per share information)
Previous period(From April 1, 2008 To March 31, 2009)

Net assets per share

1,498.47 yen

1,802.33 yen

71.41 yen

114.35 yen

Earnings per share
DilutedEarnings

114.14 yen

Diluted earning per share is not

per

share

Current period(From April 1, 2009 to March 31, 2010)

presented because there is no potential

stock which could have a dilutive effect.
(Note) Base of the caluculation
1. Net assets per share
Previous period
As of March 31, 2009

Current period
As of March 31, 2010

Total net assets in B/S (million yen)

96,560116,070

Amount to be deducted from total net assets in B/S(Million yen) Minority interests

1,511

1,761

Net assets related to the common stocks(million yen)

95,049114,309

Common stocks issued (Thousands shares)

63,87863,878Treasury stocks of common stock (Thousands shares)

447

455

Number of common stocks(thousand shares) utilized forcomputation of net assets per share

63,43063,423

2. Earnings per share and diluted earnings per share
Previous period(From April 1, 2008
To March 31, 2009)

Current period(From April 1, 2009
To March 31, 2010)

Earnings pershare
Net income (Million yen)

4,530

7,252

-

-

Net income related to the common stock (Million yen)

4,530

7,252

Average shares of the common stock during the period(Thousands shares)

63,44763,425

Net income adjustment (Million yen)--

Number of common stock(thousand shares) increased
Stock acquisiton right-113

Overview of the potential shares not included in thecomputation of diluted earning share because of nothaving a dilutive effect

Sort of potential shares:
Stock acquisition right
Number of potential
shares:2,800 units

Amount not attributed to thecomon stock (Million yen)

Diluted earnings per share(Omission of Disclosures)
We have omitted disclosures concerning, Related party transactions, Financial instruments, Derivativetransactions Retirement Benefit Plan. Stock options, Business combination, and investment and rental property,
considered materiality in necessity of disclosure in this summary report.

- 31 -

5. Unconsolidated Financial Statements(1) [ Unconsolidated Balance Sheets ](Amount: million yen)

As ofMarch 31, 2009
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable from subsidiaries and affiliates
Accounts receivable-otherConsumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation and impairment loss
Buildings, net
Structures
Accumulated depreciation and impairment loss
Structures, net
Machinery, equipment
Accumulated depreciation and impairment loss
Machinery and equipment, net
VehiclesAccumulated depreciation and impairment loss
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Lease Assets
Accumulated depreciation
Lease Assets, net
Construction in progress
Total property, plant and equipment- 32 -

As ofMarch 31, 2010

35,584
11,95240,271
21,040
3,537
3,185
274
214
1,510
5,515
1,029
802
251
(55)
125,11444,095
12,98343,434
20,226
2,320
3,194
369
369
1,679
4,495
852
351
256
(75)
134,554

37,359(23,532)
13,827
1,751(1,363)388
39,198(26,318)
12,879112(101)
1012,514(10,732)
1,782
11,526
82
(10)
72
1,318
41,80737,278(24,384)
12,893
1,753(1,417)335
40,243(30,497)
9,745
109
(103)
6
13,023(11,418)
1,604
11,527
311
(66)
244
3,893
40,250(Amount: million yen)

As ofMarch 31, 2009
Intangible assets
Goodwill
Right of trademark
SoftwareLease Assets
Telephone subscription right
Other
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital of subsidiaries and affiliates
Long-term loans receivable from subsidiaries and affiliates
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable
Accounts payable
Short-term loans payable
Current portion of long-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-other
Provision for directors' bonuses
Accrued expenses
Income taxes payable
Deposits received
Provision for bonuses
Provision for loss on business liquidation
Notes payable-facilities
Other
Total current liabilities- 33 -

As ofMarch 31, 2010

43
2
248
23
1
318

49
1
223
62
23
187
547

31,53155,936
11,515
17,987
884
1,629
4,057
1,088
(2,925)(6,538)115,168
157,293
282,408

47,12585,82012,647
15,508
701
3,909
1,057
(2,826)(6,538)
157,405
198,203332,758

14,452
14,00521,00013,389
6,000
21
2,248
587
1,530
51
835
1,954
2,433
574
79,083

9,335
20,83028,50015,441
10,00010,000
85
3,207
204
640
3,320
47
885
1,954
2,152
602
107,207(Amount: million yen)

As ofMarch 31, 2009
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds
with subscription rights to shares
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on litigation
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for dividends
Reserve for special depreciation
Reserve for advanced depreciation of noncurrent assets
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 34 -

As ofMarch 31, 2010

35,00028,00014,00015,00042,184
54
883
563
170
1,262
94,118173,201

50,791
237
4,763
920
524
170
1,241
101,648
208,855

28,663

28,66329,972
1
29,97329,972
029,972

1,196

1,196

16
23
90
47,335(989)
47,672(849)
105,45816
7
90
47,335
4,466
53,111(862)
110,885

3,747
3,747
109,206
282,408

13,01713,017
123,902332,758

(2) [ Unconsolidated Statements of Income ](Amount: million yen)
FY2008(From April 1, 2008
to March 31, 2009)
Net sales
Net sales of finished goods
Net sales of goods
Rent income of real estate
Total net sales
Cost of sales
Beginning finished goods
Transfer of finished goods by merger
Beginning goods
Transfer of goods by merger
Cost of products manufactured
Purchase of finished goods
Cost of purchased goods
Cost of real estate rent
Total
Ending finished goods
Ending goods
Total cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Bond issuance cost
Sales discounts
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income- 35 -

FY2009(From April 1, 2009
to March 31, 2010)

110,856
23,906493
135,256

112,355
25,005484
137,844

13,99636
4,805
42
40,78845,321
19,766427
125,185
15,1195,921
104,144
31,111
20,949
10,161

15,1195,921
41,48843,442
18,538420
124,930
14,695
5,531
104,70333,14020,205
12,935

650
710
271
1,633

474
595
401
1,471

978
675
20
7
1,819
27
3,529
8,265

981
622
34
5
1,245
35
2,925
11,481

(Amount: million yen)
FY2008(From April 1, 2008
to March 31, 2009)
Extraordinary income
Gain on sales of noncurrent assets
Reversal of allowance for investment loss
Settlement received
Gain on extinguishment of tie-in shares
Gain from the prior-term adjustment
Compensation income
Surrender value of insurance
Other
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Impairment loss
Loss on valuation of stocks of subsidiaries and affiliates
Provision of allowance for investment loss
Provision for directors' retirement benefits for prior periods
Corresponding loss to compensation income
Loss on voluntary product recall
Compensation for damage
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income- 36 -

FY2009(From April 1, 2009
to March 31, 2010)

247
618
200
263
114
1,443

7
15
6
193
109
16
347

0
100
13
1,142
5,603
51
90
7,002
2,706
2,633
(467)
2,165
540

49
190
120
89
75
523
11,305
4,460
(85)
4,375
6,930

(3) [ Unconsolidated Statements of Shareholders' Equity ](Amount: million yen)
FY2009(From April 1, 2009
to March 31, 2010)

FY2008(From April 1, 2008
to March 31, 2009)
Shareholder's equity
CapitalBalance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Capital Surplus
Capital reserve
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Other Capital Surplus
Balance at beginning of year
Increase(decrease) during the period
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Total capital surplus
Balance at beginning of year
Increase(decrease) during the period
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Earned surplus
Earned reserve
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Other earned surplus
Dividend reserve
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) during the period
Balance at end of year
Special depreciation reserve
Balance at beginning of year
Increase(decrease) during the period
Reversal of Special depreciation reserve
Net increase(decrease) during the period
Balance at end of year

- 37 -

28,663

28,663

28,663

28,66329,972

29,972

29,972

29,972

3

1

(2)
(2)
1

(0)
(0)
0

29,97529,973(2)(2)
29,973(0)(0)
29,972

1,196

1,196

1,196

1,196

16

16

-

16

16

41

23

(17)
(17)
23

(16)
(16)
7

Reserve for reduction in fixed assets
Balance at beginning of year

FY2008(From April 1, 2008

(Amount: million yen)
FY2009(From April 1, 2009

to March 31, 2009)

to March 31, 2010)-

Increase(decrease) during the period
Provision of reserve for advanced
depreciation on fixed assets

90

90

-

Net increase(decrease) during the period
Balance at end of year
General reserve

90
90

-

Balance at beginning of year
Increase(decrease) during the period
Provision of general reserve
Net increase(decrease) during the period

44,93547,335

2,400
2,400

-

47,33547,335

3,576

(989)

(2,633)540
17(1,490)
6,930
16

(90)
(2,400)(4,565)
(989)

5,455
4,466

49,76447,672(2,633)540-(1,490)6,930-(2,092)47,672

5,439
53,111

(794)

(849)

(73)
18

(13)
1

(54)
(849)

(12)
(862)

Balance at end of year
Earned surplus carried forward
Balance at beginning of year
Increase(decrease) during the period
Dividends of surplus
Net income
Reversal of Special depreciation reserve
Provision of reserve for advanced depreciation
on fixed assets
Provision of general reserve
Net increase(decrease) during the period
Balance at end of year
Total earned surplus
Balance at beginning of the period
Increase(decrease) during the period
Dividends of surplus
Net income
Reversal of Special depreciation reserve

90

Provision of reserve for advanced depreciation
on fixed assets
Provision of general reserve
Net increase(decrease) during the period
Balance at end of year
Treasury stock
Balance at beginning of the period
Increase(decrease) during the period
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year

- 38 -

FY2008(Amount: million yen)
FY2009(From April 1, 2008
to March 31, 2009)(From April 1, 2009
to March 31, 2010)

Total Shareholders' equity
Balance at beginning of year
Increase(decrease) during the period
Dividend of surplus

107,608

105,458(2,633)(1,490)

540
(73)
15

6,930
(13)
1

(2,149)105,458

5,426
110,885

16,564

3,747(12,816)(12,816)
3,747

9,269
9,269
13,017

16,564

3,747(12,816)(12,816)
3,747

9,269
9,269
13,017

124,172

109,206

Dividend of surplus
Net income
Acquisition of treasury stock
Disposal of treasury stock(2,633)
540
(73)
15

(1,490)
6,930
(13)
1

Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period(12,816)(14,966)

9,269
14,696109,206

123,902

Net income
Acquisition of treasury stock
Disposal of treasury stock
Net increase(decrease) during the period
Balance at end of year
Valuation and translation differences
Valuation differences of available-for-sale securities
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total valuation and translation differences
Balance at beginning of year
Increase(decrease) during the period
Net increase(decrease) of the items otherthan shareholders' equity during the period
Net increase(decrease) during the period
Balance at end of year
Total net assets
Balance at beginning of year
Increase(decrease) during the period

Balance at end of year

- 39 -

(4) Notes related to going concern

N/A(5) Significant Accounting Principles
1) Valuation standards and methods for securities
Stocks issued by subsidiaries
and affiliated companies ············ Valued at cost by the weighted average method
Available-for-sale securities
Securities with market
quotations······························· Valued at market price quoted on the balance sheet date.
(Differences in valuation are presented as a component ofshareholders’ equity.
Costs of sales are determined by theweighted average method.)
Securities without market
quotations······························· Valued at cost by the weighted average method
2) Valuation standards and methods for inventories
Merchandises, finished products
and work in process
Valued at cost by the weighted average method (Writing down
method below cost to the net selling value for decreased profitability)
Raw materials and supplies

Valued at cost by the first-in first-out method (Writing down method
below cost to the net selling value for decreased profitability)

3) Method of depreciation and amortization for fixed assets
Tangible fixed assets: ················ Declining-balance method(Excluding lease assets)
However, buildings acquired after April 1, 1998 (excluding
attached structures), are depreciated by straight-line method.
Intangible fixed assets················ Straight-line method(Excluding lease assets)
However, the software for internal use is amortized by thestraight-line method for the period during which it is available in the
Company (5 years).
Long-term prepaid expenses ····· Straight-line method
Lease Assets
Lease assets under the finance lease transaction that does not transfer ownership
Recorded by straight-line method its useful lives are equals to thelease term and the residual values are equal to zero
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 31 March 2008.
4) Method of treating deferred asset
Bond issue cost:
Record in full as expenses on expenditure5) Standards for recognition of allowances
Allowance for
doubtful accounts···········In order to cover the probable losses on collection, an allowancefor doubtful accounts is provided for the estimated amount of
uncollectible receivables. For general receivables, the amount ofprovision is based on historical write-off rates, and for the doubtfulreceivables, based on the specific collectability.

Allowance for investment
loss ································· In order to cover the probable losses on investment to the affiliates,
an allowance for loss is provided for the estimated amountconsidering the business results and assets situation.
- 40 -

Provisions for bonuses ···· In order to cover the payment of bonuses to employees, anallowance is provided for the estimated amount of bonuses to be
paid, prorated for the consolidated accounting period.
Provisions for loss on
business liquidation ······· In connection from withdrawal from retail business which we soldthe shares of the subsidiaries, the estimated loss at the end of thecurrent accounting period is posted for disposal of land, building andother properties to be sold accordingly.
Provision for retirement
benefits ····························

Provision for directors'
retirement benefits ...........

Provision forloss on litigation ..........

An allowance is provided for employee’s pension and severance
payments based on the estimated amounts of projected benefit
obligation and plan assets at the end of the current accounting
period.
Actuarial difference is expensed in the following accounting period
after the year of such recognition, using the straight-line method forfive years.

An allowance is provided for severance indemnity for directors
and corporate auditors based on the amounts to be paid at the endof the current accounting period based on the internal regulation of
the company.

In order to cover the probable losses on lawsuit, an allowance forloss is provided for the estimated amount acceptable as needed.

6) Other significant basis on preparation for financial statements
Consumption Taxes
Consumption taxes are excluded from revenues and expenses
accounts.
(6) Significant change in accounting method(Change in Accounting Method)
The adoption of Partial Amendments to Accounting Standard for Retirement Benefits (Part3)
We have adopted the “Partial Amendments to Accounting Standard for Retirement Benefits(Part3)” (ASBJ Statement No. 19, issued on July 31, 2008) from this consolidated accounting year.
No affection against profit and loss will be given by this adoption.

- 41 -

(7) Notes to the Unconsolidated Financial Statements(Notes to the Unconsolidated Balance Sheets)
1. Balances with related companies
Short-term receivables
Long-term receivables
Short-term payables
2. Pledged assets
Buildings
Land
3. Obligations under guarantee contracts
4. Notes receivable discounted(Previous period)(Current period)

27,34017,987
11,657mil. yen

29,073
15,50813,599mil. yen

193
215
11,76118

mil. yen

182
215
12,0552

mil. yenmil. yenmil. yenmil. yenmil. yen(Notes to the Unconsolidated Statements of Income)1. Amounts of transactions with related companies
Sales
Purchases
Other operational transactions
Non-operational transactions
2. Research and development expenses included in
Selling, general and administrative expenses
and manufacturing cost

(Previous period)(Current period)

32,98339,513248
603

mil. yen

33,18541,865268
672

mil. yen

4,050

mil. yen

3,589

mil. yen(Notes to the Unconsolidated Statements of Shareholders’ equity)
Previous period (From April 1, 2008 to March 31, 2009)
Sort and numbers of Treasury stock
Number of shares
Number of shares
Increased
Decreased
Sort of shares
As of March 31,
As of March 31,
numbers
numbers
2008
2009
Common415,037
42,3959,558
447,874
stock(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.
Current period (From April 1, 2009 to March 31, 2010)
Sort and numbers of Treasury stock
Number of shares
Number of shares
Increased
Decreased
Sort of shares
As of March 31,
As of March 31,
numbers
numbers
2009
2010
Common447,8748,076
622
455,328
stock(Note) 1. The increased numbers are of purchase of shares which number is less than unit amount.
2. The decreased numbers are of selling of shares which number is less than unit amount.

- 42 -

(Lease Transactions)1) Finance lease transactions (borrower)
Lease Assets related to the finance lease transaction that does not transfer ownership
Contents of Lease Assets
Tangible Lease Assets
Mainly, host computer and server (Tools, furniture and fixture)
The method of depreciation of the assets under finance lease
Straight-line method its useful lives are equals to the lease term and theresidual values are equal to zero2) We still have adopted the similar manner to an ordinary rental transaction for the finance leasetransactions that do not transfer ownership and the starting dates of the lease transactions were before 31
March 2008, as follows

Previous period

Current period

Acquisition cost equivalent
Accumulated depreciation equivalentBook value equivalent

819 mil. yen
567
251

656 mil. yen
518
137

Lease commitments
Due within one year
Due after over one year
Total

163 mil. yen
233
397

121 mil. yen
111
233

Lease payments
Depreciation equivalentInterest expense equivalent

232 mil. yen
210 mil. yen
12 mil. yen

171 mil. yen
114 mil. yen
8 mil. yen

Method of calculation of depreciation equivalent
For the tangible fixed assets, ten ninths of the amount computed by the declining-balancemethod with 10% of hypothetical residual value for the lease term as remaining life isallocated to each period over the lease term.
Method of calculation of interest equivalent
Difference between total lease payments and acquisition cost equivalent of leased assets
comprises interest expense equivalent, and interest expense equivalent is allocated to eachperiod over the lease term by the interest method.

(Securities)
As of March 31, 2009 and 2010, there was no stock issued by subsidiaries or affiliated companies thathave market quotations.

- 43 -(Tax-effect accounting)
1. Major components of deferred tax assets and liabilities
Previous period(as of March 31, 2009)
Deferred tax assets (current)
Accrued enterprise tax
Provision for bonuses
Provision for loss on business liquidation
Accounts receivable
OthersGross deferred tax assets (current)
Offset with deferred tax liabilities (current)
Net deferred tax assets (current)

Current period(as of March 31, 2010)

149
338
791
187
54
1,521
(10)
1,510

mil. yen

271
358
791
190
72
1,684
(5)
1,679

mil. yen

10
10
(10)
-

mil. yen

5
5
(5)
-

mil. yen

Deferred tax assets (fixed)
Impairment loss
Valuation difference of land
Devaluation of investment to affiliates
Allowance for doubtful accounts
Allowance for investment loss
Provision for retirement benefits
Provision for directors' retirement benefits
Bad debts written off
OthersMinor total
Allowance accountGross deferred tax assets (fixed)
Offset with deferred tax liabilities (fixed)
Net deferred tax assets (fixed)

867
149
283
1,080
2,648
357
228
117
125
5,865
(1,609)4,247(2,617)1,629

mil. yen

806
149
283
1,061
2,648
372
212
117
101
5,752
(1,594)
4,158(4,158)-mil. yen

Deferred tax liabilities (fixed)
Reserve for special depreciation
Reserve for advanced depreciation of noncurrent assets
Valuation differences on available-for-sale securities
Gross deferred tax liabilities (fixed)
Offset with deferred tax assets (fixed)
Net deferred tax liabilities (fixed)

5
61
2,550
2,617
(2,617)-mil. yen

61
8,860
8,922
(4,158)
4,763

mil. yen

Deferred tax liabilities (current)
Reserve for special depreciation
Gross deferred tax liabilities (current)
Offset with deferred tax assets (current)
Net deferred tax liabilities (current)

2. Reconciliation of the difference between statutory tax rate and effective tax rate after adoption of tax-effect accounting
Previous period
Current period(as of March 31, 2009)(as of March 31, 2010)
Statutory tax rate
40.5%
40.5 %(Adjustments)
Permanently disallowed items such as entertainment expenses
4.2
0.9
Permanently non-taxable items such as dividends received
(4.5)
(0.9)
Per capita charges of inhabitant taxes
2.7
0.6
Tax credits on research and development expenses, etc.
(15.3)(2.8)
Gain on cancellation of shares for absorption of subsidiary(3.9)
Allowance account
59.5
(0.1)
Others(3.2)
0.5
Effective tax rate after adoption of tax-effect accounting
80.0
38.7

- 44 -

6. Changes in Directors(1) Change in representative of the company
N/A(2) Change in other directors or statutory auditors
1) Candidates for director to be newly assigned (Scheduled assignment date: June 25, 2010)

Candidate for Director
Candidate for Director
Candidate for Director
Candidate for Director
Candidate for Director
Candidate for Director
Candidate for Director
Candidate for Director
Candidate for Director
Candidate for Director

Yasushi Kutsukawa
Masayuki Itou
Itsuo Akasaki
Kazuhiko Sano
Akio Shirasu
Hiroshi Yoshida
Hiroshi Sudou
Takeo Kikuchi
Kenichi NishidaToyoshi Yoshida

Domestic Division
Domestic Division
Glass & Material Development Division
Research & Development Laboratory
Research & Development Laboratory
Research & Development Laboratory
Research & Development Laboratory
Pharmaceutical Research Center
Pharmaceutical Research Center
Regulatory Affairs Division

2) Director to resign (Scheduled resigning date: June 25, 2010)
Pharmaceutical Research Center
President and Representative director of Tohoku
Nipro Pharmaceutical CorporationNote) Mr. Toshiya Kai is to be the President and Representative Director of Tohoku Nipro
Pharmaceutical Corporation, exclusively, after the resignation of the Company’s director.
Director to resign

Toshiya Kai- 45 -