Summary Report of Consolidated Financial Results
For the Fiscal Year ended March 31, 2014
May 14, 2014stCompany name: NIPRO CORPORATION
TSE/OSE-1 section
Code No.8086
URL: http://www.nipro.co.jp/
Representative: Yoshihiko 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 26, 2014
Payment date of cash dividends: June 27, 2014
Filling date of annual reporting: June 26, 2014
Preparation of supplemental material on financial results: Yes
Presentation on annual results: Yes (for institutional investors and analysts)(Note: Amounts are truncated to one million yen)
Consolidated Results for the Year ended March 31, 2014 (From April 1, 2013to March 31, 2014)1.

(1) Consolidated Results of Operations
Net sales
Millions of yen %Year ended March 31, 2014
300,752
24.8
Year ended March 31, 2013
241,020
13.7
Note: Comprehensive income(Note: % of change from the previous fiscal year)
Operating income
Ordinary income
Net income
Millions of yen %Millions of yen %Millions of yen %12,2898.1
11,918(17.0)
2,861(72.0)
11,370(28.2)
14,36319.9
10,231
123.1

Year ended March 31, 2014: 29,503 million yen (98.4%) Year ended March 31, 2013: 14,867 million yen (-%)

Earnings
per share
Yen
18.19
59.99

Year ended March 31, 2014
Year ended March 31, 2013
Note: Equity in profit (loss) of affiliate

Dilutedearnings per
share
Yen
16.29
54.12

Raito of net income
to shareholders’equity%2.3
8.9

Year ended March 31, 2014: - million yen

Ratio of ordinary
income to total
assets%2.0
2.7

Net assets
Millions of yen
135,960
128,763

Note: Equity

Year ended March 31, 2013: 119,973 million yen(3)Equity ratio

Net assets per shareYen
832.14703.47

%
20.2
20.7

Consolidated Cash Flows

Cash flows fromoperating activities
Millions of yen
21,552
22,593

Year ended March 31, 2014
Year ended March 31, 2013

2.

%
4.1
4.7

Year ended March 31, 2013: (38) million yen(2) Consolidated Financial Position
Total assets
Millions of yen
Year ended March 31, 2014
619,654
Year ended March 31, 2013
579,302
Year ended March 31, 2014: 125,426 million yen

Ratio of operating
income to net sales

Cash flows frominvesting activities
Millions of yen(31,936)(37,431)

Cash flows fromfinancing activities
Millions of yen(16,346)
23,359Cash and cash
equivalents
Millions of yen
70,892
92,622

Dividends
Annual dividends per year

Year ended March
31, 2013
Year ended March
31, 2014
Year ending March
31, 2015 (Forecast)

3.

Firstquarter

Secondquarter

Thirdquarter

Year-end
dividends

Annualdividends

Yen

Yen

Yen

Yen

Yen

Millions of yen%

Ratio ofdividends to
net assets(consolidated)
%

-

12.00

-

15.50

27.50

4,690

45.8

4.1

-

16.00

-

14.50

30.50

4,614

167.6

4.0

-

13.50

-

13.00

26.50

Annual totalof dividends

Pay-out ratio(consolidated)

59.6

Forecast of Consolidated Financial Results for the Year ending March 31, 2015 (From April 1, 2014 to March 31, 2015)
Net sales
Millions of yen%

Operating income

Ordinary income

Millions of yen

Millions of yen%%

Net income
Millions of yen%

Earnings
per share
Yen
14.26
44.45

Six months ending Sept. 30 2014
155,000
8.1
7,800
34.5
6,300
8.9
2,150
(17.9)
Year ending March 31, 2015
330,000
9.7
20,00062.7
16,700
40.1
6,700
134.1
(Note: The % displays in the line of six months ending Sept. 30, 2014 show increase/decrease ratio against the six months ended Sept. 30,
2013. The % displays in the line of Year ending March 31, 2015 show increase/decrease ratio against the year ended March 31, 2014)

4. Others(1) Change in Significant Subsidiaries during the Current Period(Change in specified subsidiaries caused a change in the scope of consolidation): No
Additional: 0Removal: 0(2) Change in Accounting Policies and Accounting Estimate and Restatement[1] Changes in accounting policies by a newly issued accounting pronouncement: Yes[2] Changes other than [1]: No[3] Change in accounting estimate: No[4] Restatement: No
Note: Detailed information can be found in P.18 “(5) Notes to Consolidated Financial Statements (Changes in
Accounting Policy)” in the attachment.
(3) Issued Shares (Common stock)[1] Number of issued shares at end of the period (including treasury stock)
Year ended March 31, 2014: 171,459,479 sharesYear ended March 31, 2013: 171,459,479 shares[2] Number of treasury stock at end of the period
Year ended March 31, 2014: 20,730,973 sharesYear ended March 31, 2013:
914,107shares[3] Average number of shares during the period
Year ended March 31, 2014: 157,291,122 sharesYear ended March 31, 2013: 170,545,769 shares
Note: Number of the stocks as of the year ended March 31 2014 included 1,187,500 shares owned by Trust Account E.
(Reference) Overview of the Unconsolidated Financial Results
1.

Unconsolidated Results for the Year ended March 31 ,2014 (From April 1, 2013 to March 31, 2014)(1) Results of Operations

Year ended March 31, 2014
Year ended March 31, 2013

Net sales
Millions of yen %188,504
30.0
144,965
6.7
Earnings per share

Year ended March 31, 2014
Year ended March 31, 2013

Yen
72.13
57.79

(Note: % of change from the previous fiscal year)
Operating income
Ordinary income
Net income
Millions of yen %Millions of yen %Millions of yen %14,77441.5
18,08429.4
11,34515.1
10,438(6.1)
13,971
40.1
9,856
75.2
Diluted earnings
per share
Yen
64.58
52.13

(2) Financial Position
Total assets
Millions of yen
471,237
441,707

Year ended March 31, 2014
Year ended March 31, 2013
Note: Equity Year ended March 31, 2014: 129,941 million yen

Net assets
Millions of yen
129,941
135,837

Equity ratio
%
27.6
30.8

Net assets per share
Yen
862.09796.49Year ended March 31, 2013: 135,837 million yen*Information regarding the review procedure
This report is exempt from auditing procedure based on the Financial Instruments and Exchanges Act. It is
under the auditing process at the time this report is disclosed.
*Disclaimer regarding projection information including appropriate use of forecasted financial result, and otherspecial notes(1) The projection figures shown above are based on information that was available at the time of preparation andmay contain certain uncertainties. Actual performance and other factors may differ from these projections due
to changes in circumstances and other developments. More information concerning these forecasts can befound in P.2 “1.Business Result (1) Analysis Concerning Business Results”.

Table of Contents
1.

Business Results

2(1) Analysis Concerning Business Results

2(2) Analysis Concerning Financial Position

3(3) Basic Policies on Distribution of Profits and Dividends
for Years ended March 31, 2014 and ending March 31, 2015

42.

Corporate Group

4

3.

Management Policies

6(1)

Basic Policies of Management

6(2)Target Management Indicators

6(3)

Medium- to Long-term Management Strategies

6(4)Issues and Challenges that the Group Faces

6

4.

5.

6.

Consolidated Financial Statements

8(1) Consolidated Balance Sheets

8(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income

10

(3)

Consolidated Statements of Shareholders’ Equity

12

(4)

Consolidated Statements of Cash Flows

14

(5)

Notes to Consolidated Financial Statement

16(Notes Related to Going Concern)

16(Basis of Preparation for the Consolidated Financial Statements)

16(Changes in Accounting Policy)

18(Additional Information)

18(Notes to the Consolidated Balance Sheets)

19(Notes to the Consolidated Statements of Income)

19(Notes to the Consolidated Statements of Shareholders’ Equity)

19(Segment Information)

20(Per Share Information)

24(Material Subsequent Event)24(Omission of Disclosures)

24

Non-consolidated Financial Statements

25(1) Non-consolidated Balance Sheets

25(2) Non-consolidated Statements of Income andNon-consolidated Statements of Comprehensive Income

28(3) Non-consolidated Statements of Shareholders’ Equity

29

Others(1)

32

Changes in Directors

32

-1-

1.

Business Results(2) Analysis Concerning Business Results[1]Commentary on Business Results
During the current period under review, the global economy exhibited a basic tone of moderate recovery overall.
Signs of an upturn finally began to appear in Europe, and both stock prices and personal consumption held firm in the
United States. In Japan, the effects of policies for monetary easing and economic stimulus brought a correction of the
yen’s appreciation and steady progress on the path to recovery. Nevertheless, the economic outlook remained clouded
by some uncertainty because of apprehensions over the effects of the consumption tax hike and rise in prices forimported materials.
Under such circumstances, the Nipro Group continued its all-out efforts to expand sales, reduce production costs, andthereby improve its operating results.
As a result, consolidated sales for the current period under review increased by 24.8% from the previous year to300,752 million yen. As for profit, consolidated operating income increased by 8.1% to 12,289 million yen, but
consolidated ordinary income decreased by 17.0% to 11,918 million yen due to the decrease in foreign exchange gain
and other non-operating income and increase in non-operating expenses. Consolidated net income decreased by
72.0% to 2,861 million yen due to a decrease in extraordinary income, increase in extraordinary loss, and increase inincome taxes.
The overview of the results for the period under review by business segment is presented below.
In the period under review, the pharmaceutical product sales unit of Nipro Pharma Corporation was integrated into theCompany’s Domestic Division. In accordance with this change, the sales unit of Nipro Pharma Corporation, which had
previously been categorized in the Pharmaceutical-Related segment, was placed in the Medical-Related segment. The
year-on-year comparison, however, is not available, because it is difficult to make comparisons with the previous year
based on the segments after the reclassification.
a. Medical-Related BusinessIn this segment, through the integration of our pharmaceutical product sales units in April 2013, we pursued
synergistic effects as an all-around medical enterprise spanning the fields of medical equipment (Medical Sales
Division) and drugs (Pharmaceutical Sales Division). We also became able to promptly provide a wide range of goods
and services from the customer’s perspective. Under these circumstances, the Medical Sales Division saw favorable
sales of Heart Mate II (the implantable ventricular assisting device launched in April). Similarly, the existing
cardiovascular (CVS) products such as extracorporeal ventricular assist devices posted substantial increases in bothsales and profit.
In the field of vascular products, SeQuent ® Please, the drug-eluting balloon catheter whose sales were launched in
January 2014, traced favorable trends for both sales and profit thanks to collaboration with Goodman Co., Ltd. Salesof dialysis products (e.g., dialysis machines and HDF filters) and dialysis pharmaceuticals also increased greatly
along with the spread of on-line HDF treatment. Sales also held firm for injection-transfusion products,
enteral-alimentation products, and testing products. In the Pharmaceutical Sales Division, there was some hold-off
from purchase before the April 2014 revision of pharmaceutical reimbursement prices, but there was more prevalentswitching to generic drugs at DPC hospitals and dispensing pharmacies with an eye on the revision of diagnosis andtreatment reimbursement accompanying official policy to promote use of generic drugs. This division as wellconsequently recorded favorable sales along with an increase in first-time adoption, chiefly of drugs for oral andexternal use.
Turning to overseas sales, profits greatly expanded because of the dramatic improvement in export payability under
the influence of the yen’s depreciation against the US dollar and Euro in the foreign exchange market. In addition, oursetup for sales through local sales subsidiaries resting on local production for local consumption took root, allowing
sales activities with close ties to the markets. As a reflection, firm sales were recorded for dialysis products such as
dialyzers (artificial kidneys) as well as products for blood sugar level measurement.
As a result, net sales in this business came to 244,196 million yen.
b. Pharmaceutical-Related BusinessIn our Pharmaceutical-Related Business, we engaged in finely-tuned development of contracted business, throughprovision of various services in contracted development and support for addition of value in addition to theconventional contracted manufacturing. The period under review saw the launch of shipments of biosimilar
preparations and anti-cancer agents, and strong sales of major generic drugs. We also promoted consigned sales
based on joint development with the generic drug divisions and new drug development divisions of leading
pharmaceutical companies inside and outside Japan.
Sales of pharmaceutical containers and devices related to pharmaceutical preparation and administration werestrong because of our efforts to provide containers and systems suitable for each pharmaceutical product, address
various needs on the medical care site for items such as small-volume bags for antimicrobial agents or osteoporosis
drugs and materials for pre-filled syringes as well as rubber stoppers for pharmaceutical and vaccine use andcontainers for kit products. These containers and systems were developed by the Group or through joint developmentwith pharmaceutical manufacturers based on our original processing technologies for plastics, rubbers, and metals.
Furthermore, under governmental policy to curb medical expenses, we continued to work together with domestic andforeign pharmaceutical manufacturers for total lifecycle management of pharmaceutical products extending to future
development of combination products, self-injection systems, and dosage form modification.
As a result, net sales in this business amounted to 51,507 million yen.
c. Glass-Related Business
Sales of tube glass for ampoules were on a par with those of the same period of the previous year. Although thedomestic demand continued to decline, there was a slight upturn in orders from domestic glass-processing-2-companies. Sales of tube glass for vials also were up, thanks to an expansion of domestic sales driven by increasedorders in connection with flu vaccines and antimicrobial preparations.
Sales of glass containers for medical recorded an overall increase from the same period of the previous year,
because the decrease in domestic sales of existing products was more than offset by the increase in sales ofimported vials for special preparations.
Among other glass-related products, sales of thermos bottles fell from the same period of the previous year due to a
decline in export and sluggish domestic demand. Regarding glass for lighting purpose, demand for automotive
electric lamp products continued in the trend of growth supported by the increased auto industry production, and thisdrove the increase in sales of all electric lamp glass products. Similarly, sales of tube glass for electric lamps
increased along with the growth in demand for tube glass for lamps, and this translated into a sales increase for glass
for lighting purpose as a whole.
As a result, net sales in this business totaled 4,776 million yen.

d. Other BusinessIn the other business, the sales from real estate rental income came to 271 million yen.
[2] Outlook for the next period
The outlook for the world economy includes expectations of a further upturn in Europe and continued firm growth in
the United States. At the same time, however, it is difficult to foresee the influence of the consumption tax hike in Japan,
and the situation is anticipated to remain one that will defy prediction. In this atmosphere, we in the Nipro Group will
strive to improve our performance through continued approaches to preparation of an abundant assortment anddevelopment of products with high value-added levels.
We project the consolidated net sales of 330,000 million yen (up by 9.7% from the previous year), operating income of
20,000 million yen (up by 62.7% from the previous year), ordinary income of 16,700 million yen (up by 40.1% from theprevious year), and net income of 6,700 million yen (up by 134.1% from the previous year), for the fiscal year ending
March 31, 2015.

(2)

Analysis Concerning Financial Position[1] The conditions of assets, liabilities, and net assets
Total assets increased 40,352 million yen from the end of the previous year to 619,654 million yen. Current assets
increased 8,145 million yen mainly due to the increase of 19,514 million yen in notes and accounts receivable-trade,and noncurrent assets increased 32,206 million yen mainly due to the increase of 12,446 million yen in building andstructures.
Total liabilities increased 33,155 million yen from the end of the previous year to 483,694 million yen. Current liabilities
increased 36,956 million yen mainly due to the increase of 14,895 million yen in current portion of convertible bond-typebonds with subscription rights to shares, and noncurrent liabilities decreased 3,801 million yen mainly due to thedecrease of 14,900 million yen in convertible bond-type bonds with subscription rights to shares.
Total net assets increased 7,197 million yen from the end of the previous year to 135,960 million yen. Shareholders’equity decreased 19,302 million yen and accumulated other comprehensive income increased 24,756 million yen.
[2] The condition of cash flow
The ending balance of cash and cash equivalents in the period under review decreased 21,730 million yen from theprevious year to 70,892 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities was 21,552 million yen. The main accounts of cash inflow were income
before income taxes and minority interests, 12,891 million yen and depreciation and amortization, 25,151 million yen.
The main accounts of cash outflow were the increase of trade notes and accounts receivable, 10,729 million yen andpayment of corporate income tax, 7,501million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 31,936 million yen. The main accounts of cash outflow were payments forpurchase of noncurrent assets, 29,239 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 16,346 million yen. The main accounts of cash inflow were proceedsfrom long-term loans payable, 63,280 million yen, and the main account of cash outflow was repayment of long-termloans payable, 49,028 million yen.

-3-[3] Trend of the cash flow indicatorsth

The 58 period
Year ended
March 31, 2011
22.4

th

The 59 period
Year ended
March 31,2012
22.0

th

The 60 period
Year ended
March 31,2013
20.7

th

The 60 period
Year ended
March 31,2014
20.2

Shareholders’ equity ratio (%)
Ratio of market value of
21.9
21.1
24.6
22.5
shareholders’ equity (%)
Debt redemption (years)
12.6
19.3
15.5
16.9
Interest coverage ratio
9.1
4.8
6.6
5.5
Note: Shareholders’ equity ratio = Shareholders’ equity / Total assets
Ratio of market value of shareholders’ equity = Aggregate market value of the outstanding share / 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 share is calculated as the share price at the fiscal year-end multipliedby the number of issued shares (excluding treasury stock)
Cash flow from operating activities is taken from cash flows from operating activities on the consolidated statementof cash flows. Interest-bearing liabilities represent all liabilities represent all liabilities on the consolidated balance
sheets for which interest is payable. The amount of interest payments is taken 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, 2014 and ending March 31, 2015
We position profit return in the important management measure to distribute the non-consolidated net income toshareholders.
Retained earnings are to be invested in the sales and production facilities as well as in research and development, inview of enlarging the firm management basis and long-term business developments, so as to ensure stable andcontinuous growth.
According to the above-mentioned policy, annual dividends are calculated to be 30.50 yen per share. As we alreadypaid interim dividends of 16.00 yen per share, year-end dividends are to be 14.50 yen per share to be proposed to thethCompany’s 61 ordinary general meeting of shareholders.
Dividends for year ending March 31, 2015 are expected to be made under our basic policy of placing importance on
profit return e.

2.

Corporate GroupOur group consists of the Reporting Company (“the Company”), its 79 subsidiaries and 3 affiliated and is primarily
engaged in manufacture and sale of medical equipment, pharmaceutical products and material products such as glass
for medical purpose and glass for thermos bottles.
Positioning of each company in connection with the businesses of our group and the relation to the business segment
are as follows:<Medical-Related Business>
Domestic:

The Company, Nipro Medical Industries Co., Ltd. and Goodman Co., Ltd. manufacture medical
equipment, and the Company and Goodman Co., Ltd. sell medical equipment manufactured by its
foreign subsidiaries.
Cell Science & Technology Institute, Inc., an affiliate company, develops, manufactures and sells
cell-culture-related products.
Nichihos Co., Ltd. manages dispensing pharmacies and sells pharmaceutical products.

Overseas:

Nipro (Thailand) Corporation Ltd. (Thailand), Nipro (Shanghai) Co., Ltd. (China) and Nipro Medical
LTDA. (Brazil) purchase some of raw materials and machinery for their production from the Company,
manufacture medical equipment, and sell through the Company and its subsidiaries as well as locallyon their own.
Nipro Europe N.V. (Belgium), Nipro Medical Corporation (U.S.A.) and Nipro Trading (Shanghai) Co.,
Ltd. (China) and other sales subsidiaries purchase the products mainly from the Corporation and its
subsidiaries, and sell medical equipment etc. in the areas of their locations.
Nipro Diagnostics, Inc. (U.S.A) manufactures and sells diabetes-related products. In addition, Nipro
Tube Glass Pvt Ltd. (India), Nipro Glass Americas Corporation (U.S.A), Chengdu Pingyuan Nipro
Pharmaceutical Packaging Co., Ltd. (China), Jilin Nipro Jiaheng Pharmaceutical Packaging Co., Ltd.
(China) and other subsidiaries manufacture and sell tube glass, vials and ampoules for medical
purpose focusing on their each location.

<Pharmaceutical-Related Business>
The Company, Nipro Pharma Corporation, Zensei Pharmaceutical Industries Co., Ltd., Tohoku Nipro
Pharmaceutical Corporation and Nipro Patch Co., Ltd. manufacture and sell pharmaceutical products.
Yuki Gosei Kogyo Co., Ltd., an affiliated company, manufactures and sells active pharmaceuticalingredient etc.

-4-

< Glass-Related Business>
Domestic:

The Company sells glass tube as well as manufactures and sells glass products.

Overseas:

Shanghai Nissho Vacuum Flask Refill Co., Ltd. (China) sells internal glass sections of vacuum flask
and other glass products..

<Other business>
The Company manufactures (purchases, in some cases) and sells production machinery for medical
equipments and is engaged in leasing of real estate properties.
Nissho Insurance Services Co., Ltd. operates non-life insurance agency business mainly for thegroup companies.
The above explanations are illustrated as follows:（Domestic）
Medical-Related Business(Overseas)
Medical-Related Business≪Manufacture≫《Sale》◎Nipro Medical Industries Co.,Ltd.
◎Goodman Co.,Ltd.
◎Goodtec Co.,Ltd.
○Cell Science & Tecnology Institute,Inc.

◎Nipro Europe N.V.
◎Nipro Medical Corporation◎Nipro Trading (Shanghai) Co.,Ltd.
and 18 other subsidiaries

and 3 other subsidiaries《Sale》《Manufacture and Sale》-Medical Equipment-◎Nichihos Co., Ltd.

◎Nipro (Thailand) Corporation Ltd.
◎Nipro (Shanghai) Co.,Ltd.
◎Nipro Medical LTDA.
◎Nipro Diagnostics,Inc.
◎Nipro India Corporation Pvt.Ltd.
◎Nipro Medical (Hefei) Co.,Ltd◎P.T. Nipro Indonesia Jaya

and 10 other subsidiaries

Pharmaceurical-Related Business《Manufacture and Sale》◎Nipro Pharma Corporation《Manufacture and Sale》◎Zensei Pharmaceutical Industry Co.,Ltd.
◎Tohoku Nipro Pharmaceutical Corporation◎Nipro Patch Co.,Ltd.

《Manufacture and Sale》■Yuki Gosei Kogyo Co.,Ltd

Other Business

N
i
p
r
o

and 15 other subsidiaries《Manufacture and Sale》-Glass Products for Medical Purpose-◎Nipro Tube Glass Pvt.Ltd.
◎Nipro Glass Americas Corporation

C
o
r
p
o
r
a
t
i
o
n

◎Nipro Glass Germany AG◎Chengdu Pingyuan Nipro
Pharmaceutical Packaging Co., Ltd.
◎Jilin Nipro Jiaheng
Pharmaceutical Packaging Co., Ltd.
and 8 other subsidiaries《Non-life insurance agency》○Nissho Insurance Services Co.,Ltd.

Pharmaceutical-Related Business《Manufacture and Sale》○Nipro Pharma Vietnam Co.,Ltd.
Supply of raw materials
Supply of products and merchandises
Other transactions

Glass-Related Business《Sale》◎Shanghai Nissho Vacuum Flask Refill Co.,Ltd.
◎Consolidated subsidiary○Unconsolidated subsidiary■Affiliated company

-5-

3.

Management Policies(1) Basic Policies of Management
Since our foundation of year 1954, the Company has a business philosophy of contribution to the society throughcorporate activities with the concept of “technology innovation”. In keeping with this philosophy, it has constantly soughtto achieve growth through pursuit of distinctive products and technology for a higher quality of life (QOL) among
patients and response to issues and needs on medical care sites.
In addition, considering the idea that the balance between “stability” and “growth” is most important for a company, we
implement the “performance-linked remuneration system” that is the rule 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 1,000,000 million yen of consolidated net sales by the fiscal year 2030. And
as a first step, we aim to achieve 500,000 million yen of consolidated net sales and 40,000 million yen of ordinary
income by the fiscal year 2020. To realize these goals, we are going to move towards steady development in each field;
medical, pharmaceutical, and glass businesses.
(3) Medium- to Long-term Management Strategies
Our basic policy and management strategy lie in expansion of share and sales in the global market by heightening our
production capacity for products projected to exhibit quantitative growth, and providing products endowed with stable
quality and cost competitiveness. We are also determined to develop products of value as viewed from the user’s
perspective by making effective use of our original technology and other management resources spanning the threebusiness segments of medical equipment, drugs, and glass.
In our Medical-Related Business, to expand our share of the market, we are going to take vigorous action to fill out ourassortment and open up new sales channels in domains such as diabetes-related and vascular-related products inaddition to further developing our sales of the artificial kidney dialyzers (our mainstay products in this field) and otherdialysis-related products. We aim to capture the leading share of the global market for dialysis-related products, and aregoing to construct a setup for manufacture and sales in various locations around the world, to realize the vision of local
production for local consumption. In the field of generic drugs, the demand is expected to continue in a trend of rapid
expansion, in light of the roadmap for promotion of their use presented by the Ministry of Health, Labour and Welfare,which hopes to increase the share of the total pharmaceutical sales volume occupied by generic drugs to at least 60
percent by the end of fiscal 2017. As such, besides our ongoing development of new generic drugs, we are going tocontinue concentrating on the construction of various sales routes to users such as DPC hospitals and dispensing
pharmacy groups while pursuing greater synergistic effects through coordination with our sales division of medical
equipment.
In the Contracted Manufacturing Division of our Pharmaceutical-Related Business, we are building setups for
production and quality assurance to meet the needs of foreign firms as well. We are also augmenting our manufacturing
facilities in domains with a high degree of difficulty (e.g., biomedicines) while further building up our business as one of
the leading Japanese firms engaged in contracted manufacturing of pharmaceuticals. We are likewise working for the
early start-up of production sites outside Japan in order to raise our stable supply capability and cost competitivenesseven higher, and thereby enable supply of pharmaceuticals to the whole world.
In our Glass-Related Business too, we are using the store of glass processing technology accumulated over our longyears of operation as the foundation for activities to develop high-quality containers for medical purpose and otheritems, and to expand their sales.
(4) Issues and Challenges that the Group Faces
In domestic sales in our Medical-Related Business, our Medical Sales Division shall strive to create designs reflecting
consideration for medical safety and security and to develop products that alleviate environmental burden in the fields
of products related to transfusion, diabetes, dialysis, vascular conditions, and CVS. It shall also mount approaches todevelop products that are gentle to medical workers, patients, and the environment, while actively marketing andexpanding sales of products addressing the diversifying needs and seeds in the market, to improve business results.
The Pharmaceutical Sales Division is faced with even more difficult circumstances in domestic business related togeneric drugs. It shall endeavor to increase the brand power of Nipro as an all-around medical enterprise while
continuing to heighten our presence in the market and strengthen price competitiveness. In overseas sales, its task is tofurther stabilize quality for products manufactured at our plants in India, Indonesia, and Bangladesh, which went into
operation last fiscal year, and thereby to make a contribution to medical care sites in those countries with the highquality of products bearing the Nipro brand. There are prospects for a major increase in sales in Europe following thebroadening of our assortment of dialysis-related products after acquisition of a German dialysis water treatment firm. In
the United States, we have opened a strategic site in New Jersey, and are determined to expand sales by accurate
response to needs for the kind of products sought on the front lines of medical care in that huge market. In our
Pharmaceutical-Related Business, our main agendum is to achieve a rigorous reduction of manufacturing costs andincrease our price competitiveness as the government accelerates deployment of measures to curb medical costs. Witha view to supplying products to the global market, it is also essential for us to improve our setups for quality assurance
in both the “soft” and “hard” aspects, in order to fully meet pharmaceutical quality standards in the United States andEurope. At the same time, we consider the construction of management to meet country risks at our overseas plants a-6-

major task, and shall take action on it.
In our Glass-Related Business, we must fully apply our production engineering skills to build systems enabling stableproduction and sales of high-quality products. To this end, the job is to relocate our domestic glass processing plant to
newly built quarters and expand the facilities. The new plant is to serve as the mother plant for all plants processing
glass under the Nipro brand. On this basis, we shall make arrangements for provision of guidance regarding site
expansion, facility expansion, and improvement of the manufacturing environment at glass processing plants in othercountries. Meanwhile, we shall promote the standardization of high-quality glass products in the medical-use glassbusiness of the Nipro Group and bolster arrangements for expansion of sales in the global market.

-7-

4. Consolidated Financial Statements(1) [ Consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2013
AssetsCurrent Assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Bulidings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation and impairment loss
Machinery equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation and impairment loss
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-8-

As of
March 31, 2014

106,000
83,66553,89910,48017,275
5,375
11,741(463)
287,974

84,957103,179
59,517
10,96820,0007,354
12,154(2,010)296,119

138,547(69,911)
68,636
170,522(117,991)
52,53022,1733,203(2,029)1,174
23,78633,113(26,712)6,400
174,702

158,109(77,025)
81,083
192,277(135,012)
57,26523,3672,409(1,507)902
20,53437,683(29,242)8,440
191,593

22,740567
10,95834,26528,493443
13,27842,216

63,141－
8,805
13,767(3,353)82,360291,328
579,30265,50798
8,453
18,535(2,870)89,724
323,534
619,954

(Millions of yen)
As ofMarch 31, 2013
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of bonds
Current portion of Convertible bond-type bonds
with subscription rights to shares
Lease obligations
Accounts payable-otherAccrued directors' bounuses
Income taxes payable
Provision for bounuses
Provision for directors' bounuses
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
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
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

-9-

As of
March 31, 2014

40,878127,238
10,0001,277

45,661
127,384
10,0004,315－

14,895

1,011
8,286
316
4,266
2,810
70
1,954
3,734
11,912
213,758

949
8,563
415
10,734
3,516
123
2,438
2,897
18,820250,714

47,14745,832

14,900－164,906
2,040
2,212
2,854
－
742
218
1,757
236,780
450,539

177,004
1,510
1,976
－
4,042
449
284
1,878
232,979
483,694

84,397636
54,788(865)
138,957

84,397688
52,567(17,999)
119,654(12,547)－(6,436)－(18,983)
8,789
128,763579,302(7,443)38
13,535(357)
5,772
10,533
135,960
619,654

(2) [Consolidated Statements of Income and Consolidated Statement of Comprehensive Income]Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
State subsidy
Gain on sales of investment securities
Guarantee commission received
Other
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent asssets
Loss on retirement of noncurrent assets
Impairment loss
Loss on reduction of noncurrent assets
Settlement package
Provision for loss on business liquidation
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income- 10 -FY2012(From April 1, 2012
to March 31, 2013)
241,020
175,31465,70654,336
11,370(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)
300,752
213,220
87,53275,242
12,289

959
1,755
3,062
1,231
7,010

748
1,868
1,344
1,793
5,754

3,447
38
531
4,017
14,363

3,857
－
2,268
6,125
11,918

54
764
4,167
－
245
5,231

242
1,549
1,321
745
282
4,141

5
368
2
770
214
－
174
1,536
18,058
6,865
574
7,439
10,619387
10,231

181
408
1
1,500
－
483
592
3,169
12,891
13,739(3,950)
9,789
3,102
240
2,861

Consolidated Statements of Comprehensive Income

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income
attributable to shareholders of parent company
Comprehensive income
attributable to minority interests- 11 -FY2012(From April 1, 2012
to March 31, 2013)
10,619(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)
3,102(6,017)－
10,265
4,248
14,867

5,103
38
21,25926,401
29,503

13,98427,975882

1,528

(3) [Consolidated Statements of Shareholders' Equity]

FY2012(From April 1, 2012
to March 31, 2013)
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
Other
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
Other
Net increase (decrease) during the period
Balance at end of year

- 12 -(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

84,39784,397－84,397－84,397

636

636

(0)
(0)
636

52
52
688

48,38954,788(4,007)
10,231
320
(144)
6,399
54,788(5,054)
2,861
－
(27)
(2,220)52,567

(864)

(865)

(0)
0
(0)
(865)

(18,178)
1,043(17,134)(17,999)

132,558

138,957(4,007)
10,231
(0)
0
320
(144)
6,399
138,957(5,054)
2,861(18,178)
1,096
－
(27)
(19,302)
119,654

(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

FY2012(From April 1, 2012
to March 31, 2013)
Accumulated other comprehensive income
Valuation differences on available-for-sale secrities
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Deferred gains or losses on hedges
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Foreign surrency translation adjustment
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Remeasurements of defined benefit plans
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year
Total accumulated other comprehensive income
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' 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 other thanshareholders' 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
Other
Net increase (decrease) of the items other thanshareholders' equity during the period
Net increase (decrease) during the period
Balance at end of year

- 13 -(6,528)(12,547)(6,018)5,103(6,018)(12,547)

5,103(7,443)

－

－

－

38

－
－

38
38

(16,209)(6,436)

9,772

19,971

9,772(6,436)

19,971
13,535

－

－

－

(357)

－
－

(357)
(357)

(22,737)(18,983)

3,753

24,756

3,753(18,983)

24,756
5,772

4,129

8,789

4,659

1,743

4,659
8,789

1,743
10,533113,950

128,763(4,007)
10,231
(0)
0
320
(144)

(5,054)
2,861(18,178)
1,096
－
(27)

8,413

26,50014,812
128,763

7,197
135,960

(4) [ Consolidated Statements of Cash Flows ](Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

FY2012(From April 1, 2012
to March 31, 2013)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Amortization of goodwill
Equity in (earnings) losses of affiliates
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits

Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
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
Payments for purchase of investment securities
Proceeds from sales of investment securities
Payments for purchase of investments
in entities accounted for using equity method
Payments for purchase of investments in
subsidiaries
resulting in change in scope of consolidation
Purchase of investment in subsidiaries
resulting in change in scope of consolidation
Payments for investment in capital
Payments for purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Payments for retirement of noncurrent assets
Proceeds from governmental subsidies
for investment in property and equipment
Net decrease (increase) in short-term loans receivable
Payments of loans receivable
Proceeds from collection of loans receivable
Other payments
Other proceeds
Net cash provided by (used in) investment activities- 14 -

18,05821,209
2
2,834
38
193
435
－
(2,715)
3,447(1,693)(4,164)(8,965)(3,182)
(830)
518
4,218
156
29,561
2,720(3,439)361(322)(6,287)22,593

12,891
25,151
1
4,827
－
1,072
(3,070)3,497(2,617)3,857(2,997)(1,160)(10,729)(2,441)(2,467)
2,061
2,207
157
30,2402,665(3,908)685(630)(7,501)
21,552(6,514)
14,290(12,025)
5,817(6,553)
7,678(1,139)9,058－(2,502)(2,385)(6,958)3,215－(3,367)(37,794)151(96)(3,764)(29,239)
464
(104)

53

1,112

1,813
(518)
148
(347)
128
(37,431)

69
(183)
126
(5)
4
(31,936)

FY2012(From April 1, 2012
to March 31, 2013)
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
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
Proceeds from sales of treasury shares
Purchase of treasury shares
Repayments of finance lease obligations
Cash dividends paid
Cash dividends paid to minority shareholders
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- 15 -(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

9,444
61,629(43,039)
9,941(10,100)
261
(18)
－
－
(750)
(3,996)(12)
23,3593,030
11,55279,449(9,340)63,280(49,028)
2,979(1,282)150－
1,195(18,277)(967)(5,038)(18)(16,346)
4,981(21,749)
92,622

1,620

1992,62270,892

(5) Notes to Consolidated Financial Statement(Notes Related to Going Concern)
N/A(Basis of Preparation for the Consolidated Financial Statements)
1) Scope of consolidation[1] Consolidated subsidiaries: 72
Name of representative consolidated subsidiaries,

・
・
・
・
・
・

Nipro Medical Industries Co., Ltd.
Nipro Europe N.V.
Nipro Diagnostics, Inc.
Tohoku Nipro Pharmaceutical Corporation
Nipro India Corporation Pvt Ltd.
Goodman Co.,Ltd.

・
・
・
・
・

Nipro (Thailand) Corporation Ltd.
Nipro Medical Corporation
Nipro Pharma Corporation
Nipro Patch Co.,Ltd.
Nipro Medical (Hefei) Co., Ltd.

Nichihos Co., Ltd. and other 11 companies were acquired their shares and Salbego Laboratorio Pharmaceutico
LTDA. and other 5 companies increased in materiality. For these reasons, those companies are included in scope of
consolidation from the consolidated fiscal year 2013.
[2] Name of representative unconsolidated subsidiary･ Nipro Pharma Vietnam Co.,Ltd.
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 the consolidated financial
statements.
2) Application of equity method[1] Number of affiliate accounted for by the equity method: 1･ Infraredx, Inc.
[2] Name of representative unconsolidated subsidiary not accounted for by the equity method:･ Nipro Pharma Vietnam Co.,Ltd.
Name of affiliate not accounted for by the equity method:･ Yuki Gosei Kogyo Co., Ltd.
The equity method is not applied to the unconsolidated subsidiaries and the affiliate company, since they are notmaterial 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 main 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, andnecessary 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 without market 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 fordecreased profitability)
Derivatives transaction
Valued at the market price- 16 -

[2] Method of depreciation and amortization for significant depreciable assets
Property, plant and equipment ----- Mainly 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.
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 the lease 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] Standards for recognition of significant allowances
Allowance for double accounts ---- In order to cover the probable losses on collection, an allowance for doubtful
accounts is provided for the estimated amount of uncollectible receivables.
For general receivables, the amount of provision is based on historical write-off
rates, and for the doubtful receivables, based on the specific collectability.
Provision for bonuses ---------------- In order to cover the payment of bonuses to employees, an allowance isprovided for the estimated amount of bonuses to be paid, prorated for the
consolidated accounting period.
Provision for directors’ bonuses ---- In order to cover the payment of bonuses to directors and corporate auditors, anallowance is provided for the estimated amount of bonuses to be paid, prorated
for the consolidated accounting period.
Provision for loss on
business liquidation ------- In connection with withdrawal from retail business which we sold the shares of
the consolidated subsidiaries, the estimated loss at the end of the consolidated
accounting period is posted for disposal of land, building and other properties tobe sold accordingly.
Provision for
directors’ retirement benefits ------- An allowance is provided for severance indemnity for directors and corporate
directors based on the amounts to be paid at the end of the consolidated
accounting period.
Provision for loss on litigation ------ In order to cover the probable losses on lawsuit, an allowance for loss isprovided for the estimated amount acceptable as needed.
[4] Accounting Treatment of Retirement Benefits
Method of attributing expected benefit to periods
In calculating retirement benefit obligation, the Company attributed expected benefit to the periods on astraight-line basis.
Accounting Method of Actuarial gains and losses and prior service costs
Prior service costs are amortized on a straight-line basis over the certain period (generally 5 years) which is
no longer than the expected average remaining working lives of the employees when they occur.
Actuarial gains and losses are amortized on a straight-line basis over the certain period (generally 5years)
which is no longer than the expected average remaining working lives of the employees from the following theyear which they arise.

[5] Amortization of goodwill
Goodwill is amortized using the straight-line method over the estimated benefit period of the asset.

[6] 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 are 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] Significant method of hedge accounting
Method of hedge accounting
The deferral hedge accounting method is applied in principle. Designation accounting is used for foreignexchange swap that meet the requirements for designation accounting, and exceptional accounting is used forinterest rate swap that meet the requirements for exceptional accounting.

- 17 -

Hedge instrument and hedge items[Hedge instruments]
Foreign exchange swaps
Interest rate swaps[Hedge items]
Foreign currency borrowings
Borrowings

Hedge policy
The Company uses foreign exchange swaps and interest rate swaps to mitigate the foreign currency risk andthe interest rate risk involved in procuring funds and hedge items are identified on an individual contract basis.
Method for evaluating the validity of hedges
For items covered by designation or exceptional accounting, the validity of the hedge is not evaluated.

[8] Other significant basis on preparation for consolidated financial statements
Consumption taxes
Consumption taxes are excluded from revenues and expenses accounts and consumption taxes unqualified
for deduction for tax purposes for assets, etc. are reported as period expenses in the consolidated accounting
period.
(Changes in Accounting Policy)
Application of the Accounting Standard for Retirement Benefits and its Guidance
The Company applied “Accounting Standard for Retirement Benefits” (ASBJ Statement No.26, May 27, 2012) andthe “Guidance on the Accounting Standard for Retirement Benefits” (ASBJ Guidance No.25, May 17, 2012) effective
the end of the fiscal year; except for the provisions specified under the main clause of Section 35 of the AccountingStandard for Retirement Benefits and the main clause of Section 67 of the Guidance on the Accounting Standard for
Retirement Benefits. Under the new accounting policy, the amount of retirement benefit obligations minus plan assets
is recorded as defined benefit liability, and the unrecognized actuarial gains and losses and unrecognized priorservice costs were recognized in defined benefit liability (in case that the amount of plan assets exceeds retirement
benefit obligation, it is recorded as defined benefit asset). In applying the Accounting Standard for Retirement
Benefits and its Guidance, the Company follows the tentative treatment set out in Section 37 of Accounting Standard
for Retirement Benefit. Consequently, the effects of the changes in accounting policies were recognized inremeasurements of defined benefit plans under accumulated other comprehensive income in the fiscal year ended
March 31, 2014.
As a result, as of March 31, 2014, defined benefit asset of 98million yen was recorded while defined benefit liabilityof 4,042million yen was recorded respectively. Also, the above impact on accumulated other comprehensive income
was to reduce the amount by 357million yen.
(Additional Information)
Accounting Treatment of Retirement Benefit Trust (Employee Stockholding Association Purchase-type)
The Company provides employee stockholding association with the Company’s own stocks via trust with the
purpose of improving employee’s welfare and increasing their motivation for enhancement of the enterprise value. For
the accounting treatment of stock benefit trust (Employee stockholding Association Purchase-type), the Company
adopted earlier “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts” (PITF No.30, December 25, 2013).
1) Outline of the Trust“Stock Benefit Trust (Employee Stockholding Association Purchase-type)” (hereinafter “the Plan”) is an incentive
plan to return the merit of the stock price rise to all members of “NIPRO Employee Stockholding Association”(hereinafter “the Association”).
The Company, as settlor, entered into “Stock Provision Trust Agreement (Employee Stockholding Association
Purchase-type)” (hereinafter “the Trust Agreement”) with Mizuho Trust and Banking Co., Ltd, as trustee under theplan. The trust set up under the trust agreement is referred as “the Trust”. Also Mizuho Trust and Banking Co., Ltd
entered into a custodial agreement with Trust and Custody Service Bank, Ltd (Trust Account E) (hereinafter “Trust
Account E” ), thus, the trust will be re-entrusted to Trust and Custody Service Bank, Ltd.
The Trust Account E acquires the number of the Company’s stocks all at once in advance as the Association
expects to acquire in five years, and sells off the stocks to the Associations. The remaining funds will be distributed
to qualified members of the association when there are earnings resulting from an upward swing in stock price when
the Trust terminates. Also the Company provides Mizuho Trust and Banking Co., Ltd with guarantee against theloans which would be used for the purchase of the stocks; therefore, the Company will pay back the loan when aloss is caused by drop in stock prices at the end of trust period.
2) Company’s own stocks remaining in the trust
The Company recorded own stocks in the trust as treasury stocks under net assets at book value excluding
associated costs in the trust. The book value of own stocks for the period ended March 31, 2014 was 1,080 million
yen, and the number of the stocks was 1,187 thousand shares.
3) Aggregate book value of loan under gross price method
The value was 1,091 million yen for the period ended March 31, 2014.

- 18 -

(Notes to the Consolidated Balance Sheets)(Previous period)
1) Pledged assets(Current Period)

32,330mil.yen38,205

mil.yen37

mil.yen35

mil.yen2,157

mil.yen4,554

mil.yen

Other of investments and other assets
3,384(Investments in capital)
4) Accounting practices of notes with maturity date of March 31, 2013

mil.yen6,584

mil.yen2) Discounted notes receivable3) Accounts related to unconsolidated subsidiaries
and affiliate companies
Investment securities (stock)

The balance sheet date for the year ended March 31, 2013 fell on a bank holiday. Consequently, notes
with maturity date of March 31, 2013 were included in the following accounts.
(Previous period)(Current Period)
Notes-receivable trade

1,302

mil.yen-mil.yenNotes-payable trade503

mil.yen-mil.yen(Notes to the Consolidated Statement of Income)(Previous period)
Research and development expenditure included inselling general and administrative expenses andmanufacturing cost.

6,464(Current Period)

mil.yen7,890

mil.yen(Notes to the Consolidated Statements of Shareholders’ equity)
Previous period (From April 1, 2012 to March 31, 2013)
1. Sort and total numbers of shared issues
Sort of shares
Number of shares
as of April 1, 2012
Common stock
171,459,479

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2013
171,459,479

2. Sort and numbers of treasury stock
Sort of shares
Number of shares
Increased
Decreased
Number of shares
as of April 1, 2012
numbers
numbers
As of March 31, 2013
Common stock
913,612625
130914,107(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
June 28, 2012at ordinary generalshareholders’ meeting
November 9, 2012
at board of directors meeting

Sort of shares

Total amount ofdividends paid

Common stock

Millions of yen
1,961

Dividends
per shares
Yen
11.50

Common stock

Millions of yen
2,046

Yen
12.00

Basis date

Effective date

March 31,2012

June 29, 2012

September 30,2012

December 10, 2012

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in the next
consolidated accounting period.
Sort ofProceeds ofTotal amount of
Dividends
Effective
Scheduled Decision
Basis datedividends paid
sharesdividends
per shares
date
June 26, 2013at ordinary generalshareholders’ meeting

Commonstock

EarnedsurplusMillions of yen
2,643- 19 -

Yen
15.50

March 31, 2013

June 27, 2013

Current period (From April 1, 2013 to March 31, 2014)
1. Sort and total numbers of shared issues
Sort of shares
Number of shares
as of April 1, 2013
Common stock
171,459,479

Increased
numbers

Decreased
numbers--

Number of shares
As of March 31, 2014
171,459,479

2. Sort and numbers of treasury stock
Sort of shares
Number of shares
Increased
Decreased
Number of shares
as of April 1, 2013
numbers
numbers
As of March 31, 2014
Common stock
914,107
21,034,840
1,217,974
20,730,973(Notes) 1. Number of the stocks increased during the period due to the following reasons; 19,834,000 shares bytender offer, 1,240 shares by purchase of odd-lot shares, 1,199,600 shares acquired by Trust AccountE from the Company.
2. Number of the stocks decreased during the period due to the following reasons; 6,172 shares by
exercise of yen denominated convertible bond due in 2015, 102 shares by sale of odd-lot shares,
1,199,600 shares sold by the Company to Trust Account E, 12,100 shares sold by Trust Account E to
the Association.
3. Number of the stocks as of the end of the period included,1,187,500 shares owned by Trust Account E.
3. Dividends(1) Amount of dividends paid
Decision
June 26, 2013at ordinary generalshareholders’ meeting
November 12, 2013
at board of directors meeting

Sort of shares

Total amount ofdividends paid

Common stock

Millions of yen
2,643

Dividends
per shares
Yen
15.50

Common stock

Millions of yen
2,411

Yen
16.00

Basis date

Effective date

March 31,2013

June 27, 2013

September 30,2013

December 9, 2013

(2) Dividends of basis date belonging to the consolidated accounting period to its effective date be in the next
consolidated accounting period.
Sort ofProceeds ofTotal amount of
Dividends
Effective
Scheduled Decision
Basis datedividends paid
sharesdividends
per shares
date
June 26, 2014at ordinary generalshareholders’ meeting

Commonstock

EarnedsurplusMillions of yen
2,202

Yen
14.50

March 31, 2014

June 27, 2014

(Note) Total amount of dividends paid includes the dividend on shares owned by Trust Account E, 17 million yen.
(Segment Information)[Segment Information]
1. Outline of reportable operating segments
Applied ASBJ Statement No.17 “TheAccounting Standard for Disclosures of Segments of an Enterprise and RelatedInformation”, the reportable operating segments are components of an entity for which separate financial information isavailable and evaluated regularly by the board of director in determining the allocation of management resources and inassessing performance. We currently operate our business on a stand-alone basis with the divisional organization andevaluate the performance of sales and manufacture of each division regardless of their products. Accordingly, we divide
our operations into 3 reportable operating segments on the basis of its main products: Medical-Related,
Pharmaceuticals-Related and Glass-Related.

*Medical-RelatedDomestic division sells injection- and infusion-related products, artificial organ-related products, highly functional
products, dialysis-related products and diabetic-related products. In the global business division, head office plays thecenter role and place overseas sales and manufacturing base for medical equipment and glass products for medical
purpose and sales injection- and infusion-related products, artificial organ-related products, diabetic-related products,
and glass for vials and ampoules.
*Pharmaceutical-Related
Pharmaceutical business division sells container for combination products and sells pharmaceuticals frompharmaceutical companies on a consignment basis. Domestic subsidiaries sell and manufacture injectable drug, oral
drugs and combination products (Kit injectable).
*Glass-Related
In the field of glass for medical purposes, we sell glass for vials and ampoules. In the field of glass & materials products,
we sell glass for thermos bottles and glass for lighting purpose.

- 20 -

2. Method of calculating sales and profit by reportable operating segment
The accounting process of the segments follows the accounting principles and practices listed in Basis of Preparation for
the Consolidated Financial Statements. Profit of the segment is based on operating income. Internal revenue and transfer
to revenue between segments are based on the market realized price.
3. Information on amount of sales, profit or loss, assets and other items by reportable segment
FY2012 (From April 1, 2012 to March 31, 2013)(Millions of yen)
Total

Adjustment(Note.2)

Consolidated
financialstatements(Note.3)

Reportable Segment
Other(Note.1)

Medical-Related

Pharmaceutical-Related

169,971

66,212

4,602

240,785234

241,020-

241,020

Glass-RelatedTotal

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

1,277

6,906

490

8,674

45

8,719

(8,719)-171,248
14,287

73,119
3,988

5,092
600

249,460
18,876280
220

249,740
19,097(8,719)(7,726)

241,020
11,370

Segment assets

304,752

132,8297,090

444,672

4,542

449,214130,087

579,302

12,085

8,191

77

20,35349

20,402807

21,209(2) Amortization of goodwill

2,835

(0)

-

2,834

-

2,834

-

2,834

(3) Increase in tangible andintangible fixed assets

26,365

10,340936,715-36,715

1,281

37,997

Other items(1) Depreciationamortization(Note)

and1. “Other” is the business segment which is not included in the reporting segment and consist of real estate
income and sales by headquarter.
2. Adjustment is as follows.
(1) Adjustment for the segment profit of (7,726) million yen includes elimination of inter-segment transaction of(43) million yen and corporate cost of (7,683) million yen. Corporate cost consists primarily of sales, generaland administrative expenses and research and development cost which do not belong to the reporting
segment.
(2) Adjustment for the segment assets of 130,087million yen includes elimination of inter-segment transaction of(51,050) million yen and corporate assets of 181,138 million yen. Corporate assets consisted primarily ofcash and deposit, investment securities, assets for development and assets for management division of head
office which do not belong to the reporting segment.
(3) Adjustment for depreciation and amortization of 807 million yen is for corporate assets. Depreciation andamortization and increase in tangible and intangible fixed assets include long-term prepaid expenses.
(4) Adjustment for increase in tangible and intangible fixed assets is increase in corporate assts.
3.
Segment profit is adjusted to the operating income on the consolidated statements of income.

FY2013 (From April 1, 2013 to March 31, 2014)(Millions of yen)
Other
(Note.1)

Total

Adjustment(Note.2)

Consolidated
financialstatements(Note.3)

Reportable Segment
Medical-Related

Pharmaceutical-Related

244,196

51,507

4,776

300,481271

300,752-

300,752

Glass-RelatedTotal

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

1,400

7,511

575

9,486

-

9,486

(9,486)-245,596
17,69559,019
8,013

5,351
556

309,967
26,265271
216

310,239
26,481(9,486)(14,192)

300,752
12,289Segment assets

368,330

137,193

7,561

513,084

4,495

517,580

102,074

619,654

15,2038,777

86

24,067

46

24,114

1,036

25,151(5) Amortization of goodwill

4,823

3

-

4,827

-

4,827

-

4,827

(6) Increase in tangible andintangible fixed assets

19,617

10,64689

30,353-30,353

4,739

35,093

Other items(4) Depreciationamortizationand- 21 -

(Note)4.

1. “Other” is the business segment which is not included in the reporting segment and consist of real estate
income and sales by headquarter.
2. Adjustment is as follows.
(1) Adjustment for the segment profit of (14,192) million yen includes elimination of inter-segment transaction of(2,483) million yen and corporate cost of (11,708) million yen. Corporate cost consists primarily of sales,
general and administrative expenses and research and development cost which do not belong to thereporting segment.
(2) Adjustment for the segment assets of 102,074million yen includes elimination of inter-segment transaction of(65,201) million yen and corporate assets of 167,275 million yen. Corporate assets consisted primarily ofcash and deposit, investment securities, assets for development and assets for management division of head
office which do not belong to the reporting segment.
(3) Adjustment for depreciation and amortization of 1,036 million yen is for corporate assets. Depreciation andamortization and increase in tangible and intangible fixed assets include long-term prepaid expenses.
(4) Adjustment for increase in tangible and intangible fixed assets is increase in corporate assts.
3.
Segment profit is adjusted to the operating income on the consolidated statements of income.

Change in Reportable Segment(1) Effective from the first quarter period ended June 30,2013, the pharmaceutical product sales unit of Nipro Pharma
Corporation has been integrated into the Company’s Domestic Division so that we can enhance our management
capability through close coordination between the three divisions: the Medical Devices Division, thePharmaceutical Products Division, and the Glass and Materials Division. In accordance with this change, the sales
unit, which had previously been categorized into the Pharmaceutical-Related segment, is reclassified to theMedical-Related segment.
The segment information for ther period ended March 31, 2013 after reclassification, except for sales to externalcustomers, is not available to the public, because accurately and retrospectively extracting data for cost of sales
and selling, general and administrative expenses is practically difficult. In addition, the segment information for thecurrent quarter period under review based on the segments before the reclassification is not available to the public
either, because it is practically difficult to obtain necessary information to prepare it.
Sales to the external customers for the period ended March 31, 2013, if prepared based on the segments
before the reclassification, would have been 191,074 million yen for the Medical-Related segment and 45,109
million yen for the Pharmaceutical-Related segment.
(2) Effective from the first quarter period ended June 30, 2013, Chengdu Pingyuan Nipro Pharmaceutical Packaging
Co., Ltd., Jilin Nipro Jiaheng Pharmaceutical Packing Co., Ltd. and Anyang Nipro Changda Pharmaceutical
Packaging Co., Ltd., which had previously been categorized into the Glass-Related segment, are reclassified to
the Medical-Related segment, as a result of review and re-examination as part of our international management
strategy.
The segment information for the period ended March 31, 2013 is prepared based on the reportable segment
after the reclassification.

- 22 -

[Related Information]
FY2012 (From April 1, 2012 to March 31, 2013)
1. Information for each product and service
Disclosure is omitted as the same information is disclosed in segment information.
2. Information for each area
(1) Net sales
Japan

America

138,961

Europe46,311(2) Property, plant and equipment
Japan32,372

America

102,525

23,375

Europe12,199(Millions of yen)
Total

Asia

(Millions of yen)
Total

Asia
7,869

241,020

52,107

174,702

3. Information about impairment loss on fixed assets by reportable segments(Millions of yen)
Reportbale segment
Pharmaceutical-Related

Medical-Related

2

Total

Glass-Related

-

-

Other
2

Total
-

2

4. Information about unamortized balance of goodwill by reportable segment(Millions of yen)
Reportbale segment
Medical-Related

Balance of theficical year-end

Pharmaceutical-Related

22,731

Total

Glass-Related

8

-

Other

22,740Total-

22,740FY2013 (From April 1, 2013 to March 31, 2014)
1. Information for each product and service
Disclosure is omitted as the same information is disclosed in segment information.
2. Information for each area
(1) Net sales
Japan

America

174,860

Europe56,887(2) Property, plant and equipment
Japan40,434

America

103,368

28,570Europe16,305(Millions of yen)
Total

Asia

(Millions of yen)
Total

Asia
11,104

300,752

60,815191,593

3. Information about impairment loss on fixed assets by reportable segments(Millions of yen)
Reportbale segment
Medical-Related

Pharmaceutical-Related1

Total

Glass-Related

-

-

Other
1

Total
-

1

4. Information about unamortized balance of goodwill by reportable segment(Millions of yen)
Reportbale segment
Medical-Related

Balance of theficical year-end

28,476

Pharmaceutical-Related

Total

Glass-Related

17- 23 --

28,493

Other

Total
-

28,493(Per Share Information)
Previous period(From April 1, 2012
to March 31, 2013)

Current period(From April 1, 2013
to March 31, 2014)

Net assets per share

703.47 yen

832.14 yen

Earnings per share

59.99 yen

18.19 yen

Diluted Earnings per share

54.12 yen

16.29 yen

Base of the calculation is as follow;
1. Net assets per share
Previous period(As of March 31, 2013)

Current period(As of March 31, 2014)

128,763

135,960

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

8,789

10,533

Net assets related to the common stocks(million yen)

119,973

125,426

Common stocks issued (Thousands shares)

171,459

171,459914

20,730170,545

150,728

Total net assets in B/S (million yen)

Treasury stocks of common stock (Thousands shares)
Number of common stocks utilized for computation of net
assets per share (thousand shares)

2. Earnings per share and diluted earnings per share
Previous period(From April 1, 2012
To March 31, 2013)

Current period(From April 1, 2013
To March 31, 2014)

Earnings per share
Net income (Million yen)

10,231

2,861

-

-

Net income related to the common stock (Million yen)

10,231

2,861

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

170,545

157,291--

18,51818,389--Amount not attributed to the common stock (Million yen)

Diluted earnings per share
Net income adjustment (Million yen)
Number of common stockincreased
Stock acquisiton right (thousand shares)
Overview of the potential shares not included in thecomputation of diluted earning per share because of nothaving a dilutive effect(Material Subsequent Event)
N/A(Omission of Disclosures)
We have omitted disclosures concerning, Lease trade, Related party transactions, Tax effected accounting, Financial
instruments, Securities, Derivative transactions, Retirement Benefit Plan, Stock options, Assets Retirement Obligations,
Investment and Rental property and Business Combination, considered materiality in necessity of disclosure in thissummary report.

- 24 -

5. Non-consolidated Financial Statements(1) [ Non-consolidated Balance Sheets](Millions of yen)
As ofMarch 31, 2013
AssetsCurrent Assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Securities
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
Bulidings
Accumulated depreciation and impairment loss
Buildings, net
Structures
Accumulated depreciation and impairment loss
Structures, net
Machinery, equipment
Accumulated depreciation and impairment loss
Machinery 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- 25 -

As ofMarch 31, 2014

61,55914,197
46,913－
19,700
4,227
4,039
2,283
185
1,732
709
1,497
507
663
(71)
158,147

40,413
15,07962,21420
29,192
3,214
3,518
1,197
275
2,488
40
1,485
1,123
730
(8)
160,985

38,356(25,042)
13,314
1,969(1,517)451
50,409(42,619)
7,790
96
(93)
3
14,523(13,003)
1,520
11,432
846
(406)
440
282
35,236

39,411(25,491)
13,9201,994(1,565)428
51,337(45,115)
6,222
95
(86)
8
15,641(13,775)
1,865
11,787
879
(493)
385
516
35,134

(Millions of yen)
As ofMarch 31, 2013
Intangible assets
Goodwill
Patent right
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
Investments in capital of subsidiaries and affiliates
Long-term loans recievable
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy,
claims provable in rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Commercial papers
Current portion of bonds
Current portion of Convertible bond-type bonds
with subscription right s to shares
Lease obligations
Accounts payable-other
Directors' bonuses payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Unearned revenue
Provision for bounuses
Provision for loss on business liquidation
Notes payable-facilities
Other
Total current liabilities- 26 -

As ofMarch 31, 2014

－
25
2
668
539
23
281
1,541

3,731
14
3
924
429
23
409
5,537

59,232
139,564
036,593
3,398
2,731

59,112
157,859
037,646
3,338
6,870

343

340

711
8,918
485
(2,569)(2,629)246,781283,559441,707

1,313
7,566
603
(2,444)(2,629)269,579
310,251
471,237

10,61421,98632,00030,65910,000－12,262
33,12431,00036,161
10,0003,000－

14,895

338
3,795
316
694
2,600
25
126
－
1,049
1,954
1,994
722
118,878322
12,044
415
759
5,100
12
61
45
1,179
2,438
764
1,721
165,308

(Millions of yen)
As ofMarch 31, 2013
Noncurrent liabilities
Bonds payable
Convertible bond-type bonds
with subscription right s to shares
Long-term loans payable
Lease obligations
Long-term unearned revenue
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for loss on litigation
Long-term guarantee deposited
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 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- 27 -

As ofMarch 31, 2014

43,00042,00014,900－125,417
692
－
1,026
563
218
1,172
186,990
305,869

130,173
535
84
1,151
256
218
1,567
175,987
341,295

84,39784,397

635
0
636

635
53
688

1,673

2,178

16
98
56,035
7,518
65,340(865)
149,50916
98
60,535
8,802
71,630(17,999)
138,717(13,672)(13,672)
135,837
441,707(8,776)(8,776)
129,941
471,237

(2) [Non-consolidated Statements of Income and Non-consolidated Statement of Comprehensive Income]Non-consolidated Statements of Income

FY2012(From April 1, 2012
to March 31, 2013)
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
Beginning goods
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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of subsidiaries and affiliates' stocks
State subsidy
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Settlement package
Provision for loss on litigation
Loss on reduction of non-current assets
Provision for loss on business liquidation
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income- 28 -(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

115,892
28,792
280
144,965

157,191
31,041
271
188,504

15,6206,501
40,19644,49423,823
59
130,696
13,965
5,735
110,995
33,96923,531
10,438

13,965
5,735
40,45785,02325,87755
171,115
23,265
5,927
141,923
46,58131,807
14,774

140
2,189
3,110
478
5,918

169
2,217
3,039
505
5,931

1,598
550
237
2,385
13,971

1,704
514
402
2,621
18,084

7
2,506
－
－
0
2,514

160
－
610
1,303
3
2,077

128
214
48
－
－
42
433
16,052
4,368
1,827
6,196
9,856

260
－
－
580
483
489
1,814
18,347
7,009
(7)
7,002
11,345

(3) [Non-consolidated Statements of Shareholders' Equity](Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

FY2012(From April 1, 2012
to March 31, 2013)
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
Provision of legal retained earnings
Net increase (decrease) during the period
Balance at end of year
Other earned reserve
Reserve for dividends
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) during the period
Balance at end of year

- 29 -

84,39784,397－84,397－84,397

635

635

－
635

－
635

0

0

(0)
(0)
0

52
52
53

636

636

(0)
(0)
636

52
52
688

1,272

1,673

400
400
1,673

505
505
2,178

16

16

－
16

－
16

FY2012(From April 1, 2012
to March 31, 2013)
Reserve for advanced depreciation of noncurrent assets
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) during the period
Balance at end of year
General reserve
Balance at beginning of year
Increase (decrease) during the period
Provision of general reserve
Net increase (decrease) during the period
Balance at end of year
Earned surplus carried forward
Balance at beginning of year
Increase (decrease) during the period
Dividends of surplus
Net income
Provision of legal retained earnings
Provision of general reserve
Net increase (decrease) during the period
Balance at end of year
Total earned surplus
Balance at beginning of year
Increase (decrease) during the period
Dividends of surplus
Net income
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

- 30 -(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

98

98

－
98

－
98

53,03556,0353,000
3,000
56,0354,500
4,500
60,535

5,070

7,518

(4,007)9,856(400)(3,000)
2,447
7,518

(5,054)
11,345(505)(4,500)
1,284
8,802

59,492

65,340(4,007)
9,856
5,848
65,340(5,054)
11,345
6,290
71,630

(864)

(865)

(0)
0
(0)
(865)

(18,178)
1,043(17,134)(17,999)

FY2012(From April 1, 2012
to March 31, 2013)
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
Net increase (decrease) during the period
Balance at end of year
Valuation and translation differences
Valuation differences of available-for-sale secrities
Balance at beginning of year
Increase (decrease) during the period
Net increase (decrease) of the items other thanshareholders' equity during the period
Netincrease (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 other thanshareholders' equity during the period
Netincrease (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
Net increase (decrease) of the items other thanshareholders' equity during the period
Netincrease (decrease) during the period
Balance at end of year

- 31 -(Millions of yen)
FY2013(From April 1, 2013
to March 31, 2014)

143,661

149,509(4,007)
9,856
(0)
0
5,847
149,509(5,054)
11,345(18,178)
1,096(10,791)
138,717(7,924)(13,672)(5,748)

4,895(5,748)(13,672)

4,895(8,776)(7,924)(13,672)(5,748)

4,895(5,748)(13,672)

4,895(8,776)

135,737

135,837(4,007)
9,856
(0)
0

(5,054)
11,345(18,178)
1,096(5,748)4,895

99
135,837(5,896)
129,941

6.

Others(1)Changes in Directors
1) Change in representative of the company
N/A
2) Change in other directors or statutory auditors

Candidate for directors to be newly assigned (Scheduled assignment date: June 26, 201４)
Director

Yoshiko Tanaka(Currently, President of Medi Hope Co., Ltd and adjunct teacher in Kobe Pharmaceutical University)

Note: Ms. Yoshiko Tanaka is a candidate for external director to be newly assigned.

- 32 -