Summary Report of Consolidated Financial Results
For the Nine Months Period ended December 31, 2017
February 8, 2018stCompany 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: February 14, 2018
Payment date of cash dividends: Supplemental material on quarterly reporting: No
Presentation on quarterly results: No(Note: Amounts are truncated to one million yen)
1. Consolidated Results for the Nine Months ended December 31, 2017 (From April 1, 2017 to December 31, 2017)(1) Consolidated Results of Operations(Note: Percentages represent changes compared with the same period of the previous fiscal year.)
Profit attributable to
Net Sales
Operating Income
Ordinary Income
owners of parent
9 months ended December 31, 2017
9 months ended December 31, 2016
Note: Comprehensive income

Millions of yen %293,869 8.8
270,187 (1.4)

Millions of yen %20,775 (20.5)
26,148 41.9

Yen
83.16
83.52

9 months ended December 31, 2017
9 months ended December 31, 2016

(2) Consolidated Financial Position
Total Assets
Millions of yen
As of December 31, 2017846,628
As of March 31, 2017
752,8392.

December 31, 2017: 184,220 million yen

Diluted Earnings
per share
Yen
75.41
75.82

Net Assets
Millions of yen
194,915
176,408

Equity Ratio
%
21.8
22.1

March 31, 2017: 166,082 million yen

Dividends
First-quarter
Yen

Annual Dividends per Year
Year-end
Second-quarter
Third-quarter
Yen
Yen
Yen
7.50
21.50
17.50
-

Year ended March, 2017
Year ending March, 2018Year ending March, 2018
(Forecast)
Note: Revisions to the forecast of cash dividends in the current quarter: No

3.

Millions of yen %13,824 (1.8)
14,071 0.7

9 months ended December 31, 2017: 24,997 million yen (- %)9 months ended December 31, 2016: (3,833) million yen (-%)

Earnings per share

Note: Equity

Millions of yen %20,118 (15.1)
23,700
70.7

21.00

Total

Yen
29.00
38.50

Forecast of Consolidated Financial Results for the Year ending March 31, 2018 (From April 1, 2017 to March 31, 2018)(Note: Percentages represent changes compared with the previous fiscal year.)
Profit attributable
OperatingEarnings
Net Sales
Ordinary Income
to owners of
Incomeper Share
parentMillions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
Yen
Year ending March 31, 2018
400,500
11.3 32,500
13.0)
30,10029.9
19,00067.5
114.03

Note: Revisions to the forecast of consolidated financial results in the current quarter: No

*Notes(1) Change in Significant Subsidiaries during the Current Period: No(Change in specified subsidiaries caused a change in the scope of consolidation)
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: No[2] Changes other than [1]: No[3] Change in accounting estimate: No[4] Restatement: No(4) Issued Shares (Common stock)[1] Number of issued shares at the end of the period (including treasury stock):
9 months ended December 31, 2017:

171,459,479 sharesYear ended March 31, 2017:

171,459,479 shares[2] Number of treasury stock at the end of the period:
9 months ended December 31, 2017:

5,087,642 sharesYear ended March 31, 2017:

5,300,071 shares[3] Average number of shares during the period:
9 months ended December 31, 2017:

166,240,193 shares

9 months ended December 31, 2016:

168,483,700 shares

Note: Number of the treasury stocks as of December 31, 2017 included 246,700 shares, and as of March 31, 2017
included 460,000 shares owned by Trust and Custody Service Bank, Ltd (Trust Account E).

*This quarterly summary report is exempt from quarterly review procedure based on the Financial Instruments
and Exchanges Act.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes
The projection figures shown above are based on information that was available at the time of preparation and may
contain certain uncertainties. Actual performance and other factors may differ from these projections due tochanges in circumstances and other developments. More information concerning these forecasts can be found in P.4“1. Qualitative Information for the Nine-Months Period Ended December 31, 2017 (3) Commentary on
Forward-Looking Statements Including Forecast of Consolidated Financial Results” in the attachment.

Table of Contents

1.

2.

Qualitative Information for the Nine-Months Period ended December 31, 20172(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

Quarterly Consolidated Financial Statements and Major Notes

5(1) Quarterly Consolidated Balance Sheets

5(2) Quarterly Consolidated Statements of Income
and Quarterly Consolidated Statements of Comprehensive Income(3) Notes Regarding Quarterly Consolidated Financial Statements

79(Notes Regarding Going Concern)

9(Notes Regarding Significant Changes in the Amount of Shareholders’ Equity)

9(Segment Information)

9

-1-

1.

Qualitative Information for the Nine-Months Period ended December 31, 2017

(1) Commentary on Business Results

The Japanese economy, during the third quarter of the consolidated cumulative period, saw a continuation of thegradual economic recovery as corporate earnings remained steady. While the global economy tends in general toward
improvement, the sense of uncertainty about the future deepened due to rising geopolitical risks around the globe. Even
under these circumstances, the Nipro Group has made efforts to increase sales and cut production costs, and worked to
improve business performance with the goal of realizing user wishes as soon as possible.
As a result, sales for the third quarter of the consolidated cumulative period increased YoY by 8.8% from the same
period of the previous year to 293,869 million yen. As for profit, operating income decreased by 20.5% YoY to 20,775
million yen due to an increase in the cost of sales and other factors. Ordinary income decreased by 15.1% YoY to 20,118
million yen. Additionally, the third quarter profit attributable to owners of parent decreased YoY by 1.8% to 13,824 million
yen despite a decrease in corporate tax.
The overview of the results for the third quarter of the consolidated cumulative period by business segment is asfollows.

(i)

Medical-Related BusinessIn the Medical Sales Division, domestic sales of the Medical Sales Division remained solid in each category of

injection-transfusion products, enteral-alimentation products, testing products, dialysis products, and cardiovascular
products and cardiac surgery (CVS) products. Sales growth was particularly high for HDF filters (dialysis products),
followed by drug eluting balloon catheter “SeQuent® Please” (cardiovascular products), and Left Ventricular Assist
Device “HeartMateⅡ” (cardiac surgery (CVS) products). The Pharmaceutical Sales Division has been working steadily
towards enhancing the Nipro brand, such as holding seminars on home health care that utilize our medical training facility,
taking into consideration regional medical partnerships and community-based care systems. Accordingly, sales ofexisting products and products included in the Japanese drug price standard list in June and December increased.
Leveraging our advantage of being a medical and pharmaceutical conglomerate, we have further enhanced our sales
promotion activities aimed at dispensing pharmacies and DPC hospitals and worked towards increasing our market sharethrough further collaborations with pharmaceutical wholesalers.
Meanwhile, in addition to expanded sales of mainstay dialysis products, such as dialyzers, and hospital products,
overseas sales revenues remained favorable, in part due to the depreciation of the yen. We have positioned the marketsof the United States, China and India as our most important. In the United States, sales steadily increased through thestrengthening of our partnership with a leading dialysis provider. In China, in addition to continued favorable sales of
dialyzers, we are expanding sales of dialysis machines. In India, sales of dialyzers and dialysis machines were favorable
and, furthermore, injection-transfusion products produced at our factory in India were also favorable and are contributing
to increased sales. Moreover, in other markets, we established a presence in Brazil in the period and are continuing tostrengthen direct sales. Going forward, we will continue quickly responding to front-line needs through the enhancementof direct sales, working to enhance customer satisfaction and expand sales.
For our new overseas manufacturing facilities (India, Indonesia, Bangladesh and Hefei/China), we expanded dialyzer
production equipment in our factories in India and Hefei/China, and in our factory in Hefei/China we began operating a
new line in October 2017.
As a result, net sales of this business increased 13.1% YoY to 221,378 million yen.

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(ii)

Pharmaceutical-Related BusinessIn the Pharmaceutical-Related Business—in addition to the existing comprehensive contract manufacturing of oral,
injection and external use drug formulations—we have endeavored to provide contract development proposals from thedesign stage of such formulations, particularly development proposals for various formulations that leverage our strengthin possessing Group companies that can comprehensively manufacture formulations, and development proposals forinjection drugs that leverage our strength in being able to develop and supply packaging such as vials, syringes and bags.
Through these development proposals, we have provided support for lifecycle management that aims to enhance added
value and differentiate products while working toward providing a diverse and detailed array of contract services.
Moreover, we have focused on contract manufacturing of pre-filled syringes, contract manufacturing at lines atmanufacturing plants for highly physiologically active pharmaceuticals, and also contract manufacturing at overseas
production facilities.
Sales of pharmaceutical containers and devices for the preparation and administration of pharmaceuticals werefavorable as we provided containers and administration systems suitable to each pharmaceutical product throughself-development or joint development with pharmaceutical manufacturers, answering the diverse needs of the medical
community for small-volume bags, pre-filled syringes (plastic and glass), etc., in addition to rubber stoppers for vaccine
use and containers for kit products. Furthermore, under the government’s policy to reduce medical expenses, we haveworked with pharmaceutical manufacturers in Japan and abroad on the comprehensive lifecycle management ofpharmaceutical products, taking into consideration future combination products (collaborations with our own
pharmaceutical products and medical devices), the systemization of self-injection, and changes to formulations and routesof administration.
As a result, net sales of this business decreased 2.7% from the previous year to 51,496 million yen.

(iii) PharmaPackaging BusinessIn the PharmaPackaging Business, in addition to our existing products, we have developed high-performance andhigh-quality pharmaceutical packaging materials under industry-academia collaboration and, towards capturing new
demand, we have been proactive in technical sales to the research departments of pharmaceutical manufacturers. All
departments are united in developing new technologies and products, accelerating product development, and are working
to expand sales at academic conferences and enhance product competitiveness. In addition, in terms of manufacturing,
we have promoted stable high-quality and high value-added products and technology development in Japan and abroadthat respond to injectable formulations and filling processes.
Looking at the overseas department, while in the United States and Europe we faced difficulties as pharmaceuticalcompanies reduced inventories, we saw a recovery centered on sales of syringes in Europe and vials in the United States.
In China, as the market becomes more high-quality, sales increased for high value-added vials and ampoules that use
high-quality glass tubes. In India, sales of high-quality glass tubes and vials were solid as a result of the strengthening ofsales and enhancing of quality. Going forward, we will enhance quality by automating production lines in each country andoptimizing production.
In the domestic market, sales were solid, with a focus on syringes and ampoules. While sales of glass tubes havestruggled in the first half of the fiscal year as a result of the rebound from the special demand for vaccines in the previous
fiscal year, the second half is seeing a recovery. We are amply supplying stable quality glass valves for thermos bottles as
impacts from production adjustments at the manufacturer are settling down. At the Biwako Plant, our global standard
mother plant, we enhanced the management frameworks and established a production framework for pharmaceuticalcontainers, greatly improving the profit structure. Moreover, the validation of the medical rubber stoppers plant, completed
in July 2017, is progressing smoothly and we are working towards the provision of products from 2018.

-3-

Going forward, along with the maturation of the market, we will work towards increasing sales by strategically pushing
forward with the introduction of high value-added products into the Asian/Indian markets, where demand for higher quality
products is rising. Meanwhile, in terms of manufacturing, we will continue to increase efficiency through the introduction of
new facilities and automation, further enhancing product quality and stability. Achieving increased profitability, we will work
towards expanding our business.
As a result, net sales of this business decreased 2.9% YoY to 20,972 million yen.

(iv) Other BusinessAmong other business, net sales from the real-estate rental business, etc. were 22 million yen (down 2.7% YoY).

(2) Analysis Concerning Financial Position
Assets, liabilities, and net assets
Total assets increased 93,788 million yen from the end of the previous consolidated fiscal year to 846,628 million yen at
the end of the third quarter under review. Current assets increased 52,258 million yen and noncurrent assets increased
41,530 million yen. The main reasons for the increase in current assets were an increase of 23,490 million yen in cash anddeposits and an increase of 19,368 million yen in notes and accounts receivable-trade. The main reasons for the increasein noncurrent assets were an increase of 11,823 million yen in construction in progress and an increase of 10,120 million
yen in investment securities.
Total liabilities increased 75,281 million yen from the end of the previous consolidated fiscal year to 651,712 million yen.
Current liabilities increased 16,989 million yen and noncurrent liabilities increased 58,291 million yen. The main reason for
the increase in current liabilities was an increase of 7,939 million yen in short-term loans payable, and the main reason for
the increase in noncurrent liabilities was an increase of 55,467 million yen in long-term loans payable.
Total net assets increased 18,507 million yen from the end of the previous consolidated fiscal year to 194,915 million
yen. Shareholders' equity increased 7,388 million yen and accumulated other comprehensive income increased 10,749
million yen. As a result, equity ratio decreased by 0.3% from the end of the previous year to 21.8%.

(3) Commentary on Forward-Looking Statements Including Forecast of Consolidated Financial Results
At this moment, we have not made any revision to the forecast of consolidated financial results for the year ending March
31, 2018, which was announced on October 2, 2017.

-4-

2. Quarterly Consolidated Financial Statements and Major Notes(1) [Quarterly Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2017
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

- 5 -

As of
December 31, 2017

123,188
121,038
78,241
10,78426,303
6,404
22,194(1,378)386,775

146,679
140,406
85,542
12,26928,532
7,454
19,605(1,455)439,034

199,471(90,929)
108,541
236,514(164,778)
71,73623,9873,855(2,642)
1,212
25,95350,232(37,441)
12,791
244,222

207,270(96,998)
110,272
254,521(176,360)
78,161
32,1173,714(2,640)1,073
37,77753,242(40,344)
12,898272,301

27,996
2,263
13,57543,83629,4982,230
14,32746,05568,888227
1,459
11,651(4,221)78,004
366,063
752,839

79,009－2,234
12,668(4,676)89,236
407,593
846,628

(Millions of yen)
As ofMarch 31, 2017
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable-otherAccrued directors' bonuses
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
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 shares
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

- 6 -

As of
December 31, 201757,587
117,933
10,00015,1601,107
13,509
343
4,304
4,075
105
10,35017,313
251,792

58,964
125,872
10,00015,015
1,173
14,317
－
4,712
6,812
500
10,58020,833
268,781

5,215

4,700

25,00025,000281,181
2,869
1,766
5,126
592
88
2,797
324,639
576,431

336,648
2,561
5,252
5,102
628
72
2,965
382,930
651,71284,39778,422(6,243)
156,577

84,39785,619(6,050)163,966

1,589
(141)
8,640
(582)
9,504
10,325
176,408
752,839

10,509(93)
10,254(415)
20,254
10,694
194,915
846,628

(2) [Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income]Quarterly Consolidated Statements of Income(Millions of yen)
Nine months ended
December 31, 2016
(From April 1, 2016
to December 31, 2016)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
State subsidy
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on reduction of non-current assets
Compensation expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 7 -Nine months ended
December 31, 2017
(From April 1, 2017
to December 31, 2017)

270,187
180,597
89,58963,441
26,148

293,869
199,475
94,39373,618
20,775

366
925
－
－
22
940
2,254

430
983
959
117
－
1,157
3,648

2,775
209
1,717
4,702
23,700

2,580
－
1,725
4,305
20,118

68
799
－
9
877

60
590
735
1
1,386

480
265
784
－
486
2,017
22,560
7,588
651
8,240
14,320249
14,071

218
254
590
1,012
685
2,760
18,7446,850(2,371)
4,478
14,265440
13,824

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)
Nine months ended
December 31, 2016
(From April 1, 2016
to December 31, 2016)

ProfitOther 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- 8 -Nine months ended
December 31, 2017
(From April 1, 2017
to December 31, 2017)

14,32014,2652,734(220)(20,781)
112
－

8,921
47
1,717
167
(122)

(18,154)(3,833)(3,083)

10,731
24,997
24,574(750)423

(3) Notes Regarding Quarterly Consolidated Financial Statements(Notes Related to Going Concern)
N/A(Notes Regarding Significant Changes in the Amount of Shareholders’ Equity)
N/A(Segment Information)
Ⅰ
1.

Nine months ended December 31, 2016 (From April 1, 2016 to December 31, 2016)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
Other(Note.1)

Adjustment(Note.2)

Quarterly
Consolidated
StatementsofIncome(Note.3)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

195,656

52,902

21,605

270,16422

270,187－

270,187

1,202

7,296

0

8,499

483

8,983

(8,983)－

196,859

60,19821,605

278,664505

279,170(8,983)

270,187

24,19812,732(760)

36,16965

36,235(10,086)

26,148

Total

Total

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

Total
Segment profit(loss)(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales byheadquarter.
2. Adjustment for the segment profit (loss) of (10,086) million yen includes realization of intercompany profits oninventories of 1,513 million yen and corporate cost of (11,599) million yen. Corporate cost primarily consists ofgeneral and administrative expenses and research and development cost which do not belong to the reporting
segment.
3. Segment profit (loss) is adjusted to the operating income on the quarterly consolidated statements of income.
2.

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

-9-

Ⅱ
1.

Nine months ended December 31, 2017 (From April 1, 2017 to December 31, 2017)
Sales and Profit by Reportable Operating Segment(Millions of yen)Segment
Other(Note.1)

Adjustment(Note.2)

Quarterly
Consolidated
StatementsofIncome(Note.3)

MedicalRelated

PharmaceuticalRelated

PharmaPackaging

221,378

51,496

20,972

293,847

22

293,869－

293,869

1,244

10,59448

11,888801

12,690(12,690)－

222,62262,091

21,021

305,735

823

306,559(12,690)

293,869

27,735

9,588

(938)

36,38442

36,427(15,651)

20,775

Total

Total

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

Total
Segment profit(loss)(Notes)1. “Other” is the business segment which is not included in the segment and consist of real estate income and sales byheadquarter.
2. Adjustment for the segment profit (loss) of (15,651) million yen includes deduction of intercompany profits oninventories of (668) million yen and corporate cost of (14,983) million yen. Corporate cost primarily consists ofgeneral and administrative expenses and research and development cost which do not belong to the reporting
segment.
3. Segment profit (loss) is adjusted to the operating income on the quarterly consolidated statements of income.
2.

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