NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section1

Contents
01

02

Contents

Management
Message04

About NIPRO

09

Review ofOperations

02 Businesses

04 President’s Message

09 Medical-Related Business

03 Financial Highlights

07 CFO’s Message

11 Pharmaceutical-Related Business
13 PharmaPackaging BusinessMedium-Term
Management Plan

1520

15 Outline of the Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

25

20 Investment Status of Social Bonds
and Loans

16 Progress on the Major KPIs
19 Approaches to SDGs

50

Financial/
Data Section

25 Sustainability of Nipro

50 Financial Review

28 Environment

55 Ten-Year Summary

30 Human Resources Strategy

57 Consolidated Balance Sheets

34 Research andDevelopment Activities

58 Consolidated Statements ofIncome/Consolidated Statementsof Comprehensive Income

37 Intellectual Property Investment
39 Status of Corporate Governance
44 Outside Directors’ Messages
46 Audit & Supervisory Board
Members’ Messages
47 Board of Directors and Audit &Supervisory Board Members

59 Consolidated Statements of
Changes in Net Assets
60 Consolidated Statements ofCash Flows
61 Notes to Consolidated
Financial Statements
82 Independent Auditor’s Report
85 Corporate Information

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This report contains forward-looking statements regarding business indices, strategies, and performance
representing the expectations and judgments of the management, based on the information available to theCompany and publishable at the time this report was prepared. When reading this report, please understandthat forward-looking statements involve potential risks and uncertainties; actual future business performanceand forecasts may therefore differ materially from those contained in these statements, given the possible
emergence of new factors or changes in economic circumstances and/or the business environment. Although
this report covers the reporting period from April 2023 to March 2024 (fiscal year ended March 31, 2024), thefigures and information provided for overseas consolidated subsidiaries refer to the 12-month period fromJanuary 1, 2023 to December 31, 2023.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section2

Businesses
Financial Highlights

About NIPRO

Businesses
We Meet the Needs ofSales ratio by business (Fiscal 2024)

Medical Professionals andNet sales

Patients through Our Three Businesses¥586,785 million

Medical-Related
Business
Nipro engages globally in the development, manufacture,and sale of medical equipment for injection, infusionand dialysis treatment, and products related to diabetes
and cell cultures, as well as the sale of artificialorgan-related products.

Pharmaceutical-Related Business 13%
Medical-Related Business 77%
PharmaPackaging Business 10%

PharmaceuticalRelated BusinessAs one of the world’s leading CDMO* companies, Nipro
performs contract manufacturing of orally administereddrugs, injectables, and external preparations throughits Pharmaceutical-Related business, and supplies
products to pharmaceutical companies in Japan andaround the world.
* Contract Development and Manufacturing Organization

PharmaPackaging
Business
Nipro’s PharmaPackaging business, a part of the company
since its founding, manufactures and sells glass
products and other comprehensive pharmaceuticalpackaging containers. Currently, Nipro engages in thisbusiness globally from a base of 11 companies and 14
plants in 8 countries, focused on Japan, China, Europe,and the U.S.

Dialysisrelated
Products

Injectables

Glass
Converting

Hospital
Products

OrallyAdministered
Drugs

Glass
TubingVascular
Products

External
Preparations

DevicesNIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section3

Businesses
Financial Highlights

About NIPRO

Financial Highlights
Net sales

Operating income¥586,785 million¥22,335 million¥11,109 million¥20,846 million

Net sales increased by 7.6% YoY due to higher
demand for key dialysis and hospital-related
products, as well as an increase in overseas
sales driven by a weak yen.

Operating income rose by 26.0% YoY,
attributed to optimized sales prices, cost
reductions from increasing production
volumes, and significant improvements inocean logistics costs.

Despite a loss from the dissolution of a joint
venture in China, net income attributableto owners of the parent surged by 142.8%
YoY, bolstered by gains from the sale ofcross-shareholdings.

R&D expenses grew by 5.9% YoY, due to theaddition of outsourced R&D expenses thisfiscal year.

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

442,516 455,559

494,789545,199

586,785

26,420Net income attributable to the ownersof the parent

14,20927,62723,882

13,45522,335R&D expenses

11,10918,204

18,652

18,734

19,669

3/'24

3/'20

3/'21

3/'22

3/'23

20,846

4,574

17,729(12,281)

3/'20

3/'21

3/'22

3/'23

3/'24

3/'20

3/'21

3/'22

3/'23

3/'20

3/'24

3/'21

3/'22

3/'23

3/'24

Capital investment

Total assets/Equity ratios

Net assets/Return on equity

Cash dividend per share¥95,342 million

Total
assets : ¥1,109,821 million

ROE: 5.1%¥25.0

Total assets increased by 8.0% YoY, with anequity ratio of 21.0%.

ROE was 5.1%, driven by an increase in net
income attributable to the owners of the parent.

An interim dividend of ¥10.0 per share and aterm-end dividend of ¥15.0 per share were
distributed, resulting in an annual dividend of¥25.0/share.

Capital investments decreased by 0.6% YoY,
despite new investments in the dialyzer
building at the Odate Plant and the injection
manufacturing plant.
(Millions of yen)

95,991
70,58095,34273,675

Total assets (Millions of yen)
Equity ratio (%)

831,865 854,396

930,32157,86618.8

17.9

1,027,399

19.9

1,109,821

Net assets (Millions of yen)
ROE (%)

161,23721.0

20.1

174,053 199,867
7.8
9.2

(Yen)

242,173

269,788

28.0

27.0
22.0

2.3

5.1

25.0

13.5

(7.9)
3/'20

3/'21

3/'22

3/'23

3/'24

3/'20

3/'21

3/'22

3/'23

3/'24

3/'20

3/'21

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3/'24

3/'20

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3/'24

NIPRO Annual Report 2024

Contents

Management
Message

About NIPRO

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section4

President’s Message
CFO’s Message

Management Message

President’s Message
Summary of the fiscal year ended March 2024

Yoshihiko Sano
President andRepresentative Director

We prioritize
profits oversales and aim forlong-term growth
Results of the fiscal year ended March 2024
Net sales

Operating income

Net income attributable toowners of the parent

586,785 million yen

22,335 million yen

11,109 million yen(7.6% increase YoY)

(26.0% increase YoY)(142.8% increase YoY)

We strived to emphasize profits rather than sales in management during this period. However,as a company that provides healthcare products, our priority is a more stable supply overprofits and more compliance over a stable supply, which has not changed.
We emphasized profits because we need to establish a high-profitability structure to makethe investment required for the company’s growth and capital investment for a stable supplyof products. First, we focused on improving the gross profit margin, that is, on increasing
unit prices. Although increasing unit prices is difficult, we are working toward this goal,considering it to be the most important company-wide issue. Typically, the management
stops manufacturing unprofitable products. However, we continue to manufacture essential
products, such as antimicrobials, as part of Nipro’s social mission. We are attempting tostabilize the supply of these products while minimizing capital investment of other products.
The operating income margin for the fiscal year ended March 2024 was 3.8% (0.5 percentage
points increase YoY). However, because I had set a target of approximately 5%, the result
was disappointing. To achieve the Medium-Term Management Plan (April 2020 – March 2025)
target of 9%, we will continuously strive to increase unit prices and expand the sales ofhighly profitable products.

Measures currently in focus
To improve the operating income margin, we will start with accelerating overseas sales of highvalue-added products, including dialyzers, a core product. In this fiscal period, we added
three dialyzer manufacturing lines at the Odate Plant in a weak yen environment, which
provided us with a big opportunity to increase exports and further increase the production
capacity to meet more demand. Our dialyzers have achieved fully automatic production and afully automatic 100% inspection system. We use polyethersulfone, a superior membranematerial, which helps us achieve overwhelming competitiveness in both cost and quality.
In the domestic market, efforts are being made to increase the unit sales prices of various
products, including dialysis-related products. We are also striving to increase the prices of
unprofitable generic drugs by applying for their individual re-pricing*. The authorized generic
Nexium AG has maintained a high revenue among drugs, and we will continue to attempt to
expand its sales.
We will continue to focus on expanding vascular products, which are positioned as thesecond pillar of our company. During this period, we strived to strengthen our sales system in
the U.S. Nonetheless, we are only at the threshold of entry into the global market. By MarchNIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section5

President’s Message
CFO’s Message

Management Message

President’s Message
2025, we will introduce scoring balloons (Aperta NSE, PTA, and NSE ALPHA) with good results
and a high evaluation in Japan and expand the sales of the imaging diagnostic device
NIRS IVUS. Moreover, we have established facilities that can provide training on catheter
procedures at iMEP, a training facility for customers in Europe, and we expect dramatic future
growth mainly in Europe and the U.S.
Meanwhile, sales of drug-eluting balloons, our core product, decreased in Japan after acompetitor’s product was launched. Nevertheless, we obtained approval for an expanded
indication of the product in August 2023 and are currently striving to recover the lost sales.
*A system in which the Ministry of Health, Labour and Welfare (MHLW) reviews the prices of drugs with highmedical needs whose manufacturing and marketing are difficult to continue because of markedly low prices.

Progress of the Medium-Term Management Plan
Nipro has been striving to achieve long-term growth and improve profitability by setting atarget of a compound annual sales growth rate of 7.0% or more and an operating income
margin of 9.0% or more in its Medium-Term Management Plan. I recognize that revenue has
increased as planned, and our core products for the overseas markets will continue to leadthe revenue growth in the future. I would like to explain the factors that are significantly
impacting current profit margin.
The most significant factor is the cell medicine business. As an innovative new businessthat will determine Nipro’s future, this business continues to record large R&D expendituresand capital investments. It is currently accelerating a practical application of STEMIRAC totreat acute traumatic spinal cord injury, which was approved in 2018 with a limited term ofseven years.
I believe that the difference between the profit margin and plan was caused by the large
impact of the COVID-19 pandemic over the past two years or more. In particular, thedemand for general treatments decreased dramatically initially. Although some products had
a special demand owing to the pandemic, the overall sales were seriously affected.
Another factor hampering the plan is that domestic generic drugs do not increase profit
margins. Generic drugs are socially highly significant products supporting the Japanese
healthcare system characterized by universal health insurance; however, they were notprofitable with the current prices. Recently, there has been a serious drug shortage, to thepoint that treatment cannot be provided if manufacturers withdraw from production.
Eventually, the prices of unprofitable drugs have started to be repriced. Therefore, we expect
the company’s profit margin to recover. The Ministry of Economy, Trade and Industry granted
a subsidy to the Nipro Pharma Ohmi Plant, a manufacturing plant for generic drugs, under the

Program for Promoting Investment in Japan
to Strengthen Supply Chain. Thus, thedrug manufacturing business is moving ina positive direction. Considering the high social
significance of generic drugs, we will continue
to supply them as consistently as possible.
Although the drug manufacturing process
is the same, we expect stable profits fromthe contract drug manufacturing business.
The increase in raw materials costs andprocessing expenses owing to the weak yen
and inflation resulted in a decrease in profits inthis period, whereas the operating income margin was originally expected to be approximately
15% for this business. The Nipro Pharma Odate Plant has acquired Food and Drug
Administration (FDA) certification for manufacturers. Thus, they have improved the quality,
and we aim for further growth by taking advantage of this point.

Initiatives for crisis management and compliance
After the fire at the Odate Plant in March 2023, I realized the necessity of risk management
measures anew. Besides, a business improvement order was given to the Nipro Pharma Odate
Plant around the same time. Although there were no problems with the final quality, a major
problem was that we failed to comply with the test method specified in the approval
certificate. Although it is important to increase sales and profits, thorough risk management
for stable production and supply and compliance are issues that we must always prioritize forbusiness continuity.
Considering this, we newly established the Stable Production/Crisis Management Divisionin this period and developed a system to support crisis management and compliance inbusiness divisions. As specific initiatives, measures for fires at the plants, a prior detailed
examination and reinforcement of a location, and compliance audits are implemented. Throughthese initiatives, we have established a mechanism for preventing the discontinuation of astable production and supply.
In addition, to improve the work efficiency of the plant and functions of the head office, a
DX Conversion Promotion Committee was established. Thus, we will improve the efficiency ofoperations and promote DX conversion of products, which will reduce expenses and improveadded value.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section6

President’s Message
CFO’s Message

Management Message

President’s Message
Sustainability
To contribute to a sustainable growth of society, Nipro made the following efforts regarding
environment, society, and governance.
Environment
We continue to reduce greenhouse gas emissions and use renewable energy sources.
Consequently, we received the same rating, B, in the climate change report of CDP as in
the previous fiscal year. We will continue to make further improvements in this direction.
Furthermore, under the CSRD, the European sustainability disclosure standard, therequest for disclosure will start targeting businesses conducted in Europe in 2026, andthe disclosure for all regions worldwide will start in 2029 (for companies that conductbusiness operations in Europe). We are currently preparing rapidly for this. The CSRD ishighly aware of the human rights issues of workers, in addition to carbon dioxide emissions.
Therefore, we will promptly establish methods of operating systems in these areas.
SocialAs a human resource strategy, we emphasize that all employees share necessary
information about each step of the business process and are motivated to rotate its PDCA
cycle. To achieve this, establishing a work environment where employees can cooperate isnecessary. In addition to providing many opportunities for interdepartmental cooperationand personnel exchange, we are endeavoring to create an environment in which
employees can work comfortably, such as introducing a flexible time system. With
these measures, we aim to motivate employees and develop human resources who findthe fulfilment of user needs truly meaningful and rewarding.
Governance
In June 2022, we appointed six outside directors, making the proportion of outside directors
one-third of the Board of Directors, and used objective opinions from them to improvegovernance. At the general shareholder meeting held in June 2024, three outside
directors were replaced. I believe that this will expand our knowledge of finance, economy,
management, and health and medical care in Japan as a whole, and we will be provided
with further advice in the future.
Outside directors have provided varied advice to date. Their common advice is, “thebusiness operation could be conducted more efficiently.” Although what they pointed out
was reasonable, it was also a necessary pain in the business expansion phase of Nipro’s
management, emphasizing user needs. Because achieving efficiency in a uniform manner

can sometimes lead to a loss of long-term product competitiveness, we intend to balance
the growth of the organization and emphasis on profits and take necessary improvement
measures in a stepwise manner.
Another issue that I have discovered is the rejuvenation of management, including theBoard of Directors. We introduced a mandatory retirement system for executive officers inthis fiscal period, which rejuvenated management positions. I also found that designing a
succession plan is an important issue. I am currently organizing my thoughts to hand overthe business to human resources who understand Nipro’s culture and can execute thenecessary measures. In addition, the selection process will be discussed with the Board of
Directors so that a highly transparent plan can be designed based on the corporate
governance code.

To shareholders and investors
We set a goal of consolidated sales of 1 trillion yen for the fiscal year ending March 2031.
The compound annual growth rate of sales over the past 12 years is 8.8%, and the sales
growth rate for the year ending March 2025 is expected to be 9.9%. Therefore, this goal is
expected to be achieved even if profits are prioritized over sales.
I would also like to reiterate my belief. The most important thing for a company to achieve
growth is to increase the competitiveness of its products. We aim to achieve the world’s top
market share by focusing on product development, being aware of user needs, and enhancing
production capacity, which is our management policy. All employees and departments work
together to achieve this goal.
We appreciate the continued support of our shareholders and investors.

August 2024

President and Representative Director

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section7

President’s Message
CFO’s Message

Management Message

CFO’s Message
We will strengthen
the financial foundationthat supports
profit-oriented
management.
Takehito Yogo
Senior Managing Director andGeneral Manager of Corporate
Planning Headquarters of the Company

We have defined KPIs from five perspectives in the Medium-Term Management Plan (April
2020 – March 2025):“profitability”“investment
efficiency”“financial
soundness”

As to “profitability,” we aim to achieve an operating income margin of at least 9.0%.
In addition to external factors (such as the high cost owing to inflation and the weak yen)that were not assumed at the time of setting the goal, we could not adequately shift thehigh cost onto prices. In a situation where it was difficult to achieve 9.0%, the operating
income margin was 3.8% in this period owing to an increase in personnel expenses. This is
notwithstanding a decrease in overseas logistics costs and R&D expenses. For the fiscal
year ending March 2025, the operating income margin is likely to improve to 5.0% by thecontinuation of price pass-through and reduction in costs such as personnel expenses andsales commissions, in addition to the promotion of high-value-added products/businesses
such as dialysis products, our dialysis centers, and needles.
For to “investment efficiency,” we aim to restore the profitability of free cash flow. In thisperiod, operating cash flow improved to 73,200 million yen. However, investment cash
flow was 87,300 million yen, which significantly exceeded the budget. Therefore, free cash
flow showed a loss of 14,100 million yen. For the fiscal year ending March 2025, in addition
to increasing operating income, we aim to accumulate operating cash flows by liquefying
receivables and compressing inventory assets. Simultaneously, we plan to reduceinvestment cash flow through the sale of assets and subsidies from the plant. Thus, free
cash flow is likely to improve substantially to 35,100 million yen. Thereby, we are likely toachieve the goal.

Progress of the Medium-Term Management Plan“growth”

With regard to “growth,” we aim to achieve a compound annual growth rate of net salesof at least 7.0%. In this period, in addition to the expansion of the sale of Nexium AG andincrease in the prices of injection drugs, large-scale dialyzer projects were acquired inEurope and the U.S., single-use expanded in Asia, and the demand for glass tubing
increased in Europe and the U.S. As a result, the compound annual growth rate of net
sales was 7.6%. For the fiscal year ending March 2025, we aim to achieve a compound
annual growth rate of sales of 9.9% by expanding the sales of dialysis products and insulin
needles for GLP-1 preparations in Europe and the U.S., and by expanding dialysis products
and dialysis centers in Asia and China.

“assetefficiency”

With respect to “financial soundness,” we aim to achieve Net Debt (net interest-bearingdebt)/EBITDA of 4.0 – 4.9 times. In this period, Net Debt increased to 530,400 million yen
because of the construction of new dialyzer production lines and acquisition of dialysis
centers, as well as the construction of a new drug plant and reinforcement of glass container
manufacturing equipment. However, EBITDA was 81,200 million yen owing to the improvementin operating income. Consequently, Net Debt/EBITDA improved to 6.5 times. For the fiscal

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section8

President’s Message
CFO’s Message

Management Message

CFO’s Message
year ending March 2025, the planned 4.99 times is likely to be achieved owing to the decrease
in Net Debt and increase in EBITDA.

Dividend policy

Lastly, for “asset efficiency,” we aim to achieve return on equity (ROE) of at least 14.0%.
In addition to the situation described for the operating income margin of “profitability,” we did
not recover the previous equipment investment and R&D expenses or future investments suchas M&A. This will likely hinder the achievement of 14.0%. In this period, the special loss owing
to the dissolution of a joint venture company was added. However, owing to an increase inoperating income and improvement in the effective tax rate, net income attributable to theowners of the parent company increased compared with the previous fiscal year. As a result,
ROE was 5.1%. For the fiscal year ending March 2025, in addition to the increase in operating
income and sale of assets, capital investment would be limited to new investments in highly
profitable businesses with evident demand and renewal investments of existing equipment.
Additionally, R&D expenses would be limited to the necessary R&D by establishing internal
standards based on future cash flow. Thus, we should increase the current net income
attributable to the owners of the parent and improve ROE to 6.8%.

To provide stable dividends to our shareholders, we modified the dividend policy in thisperiod. We integrated the profit of the basis for dividends into the consolidated net profit ofthis period. Furthermore, we maintained the dividend payout ratio of 35% and set the lower
limit of the annual dividend at 25 yen. Based on this policy, an annual dividend of 25 yen was
paid in this period.
We will actively conduct sales activities in the future and strive to provide stable dividends
by increasing the profit margin by improving cost efficiency.

* For a detailed analysis of each KPI, please refer to

P16 “Progress on the Major KPIs.”

Status of capital investment
The capital investment for this period was 95,342 million yen.
For the Medical-Related Business, we invested mainly in dialysis-related equipment at the
Odate Plant and acquired fixed assets associated with the acquisition of dialysis facilities.
For the Pharmaceutical-Related Business, capital investment was undertaken foreach manufacturing base, mainly the equipment enhancement at the Ohmi Plant (a newplant for injections).
For the PharmaPackaging Business, we undertook capital investment for the equipment of
the sterilized glass syringe line mainly at the German plant and in the glass tubing furnace
at the French plant. For the year ending March 2025, as stated for “asset efficiency,” theinvestment should be limited to new investments in highly profitable businesses with anevident demand and renewed investments for existing equipment. If new demand is likely, we
would invest after meticulously evaluating the return on investment.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section9

Medical-Related BusinessPharmaceutical-Related BusinessPharmaPackaging Business

Review of Operations

Medical-Related BusinessNet sales for each area and product(Fiscal 2024)

453,613 million

Net sales Total ¥Japan 49.1%

Overseas 50.9%
Nipro Brand generic drugs
27.3%

Dialysis-related products 38.3%
Needles
10.1%
Infusion-related products 4.4%
Vascular products
6.8%

Others
6.0%

Surgical device-related products 1.9%
Diabetes-related products
2.5%
Testing products
2.6%

Overview of the fiscal year ended March 2024

Forecast and strategy for the fiscal year ending March 2025

Domestic sales of medical devices have been strong since the number of operations increased
with the shift from COVID-19 to Class V infectious diseases, and implantable ventricular assist
devices have continued to perform well. In addition, infusion-related products and test
products performed well because of price revisions. However, overall sales remained low
because of the impact of other companies’ entry into the market of vascular products, in which
we had a high market share, the disappearance of the special demand for vaccination syringes,
and a decrease in dialysis equipment installation cases. Regarding pharmaceutical products,
there was robust growth in revenue due to brisk sales of esomeprazole, POINT an authorized
generic (AG), and an increase in drug prices because the repricing of unprofitable products
was extraordinarily and exceptionally applied to all products in the NHI price revision.
The SARS Coronavirus Antigen Kit and Influenza Virus Kit, launched in October 2023,
performed well. Regarding logistics costs, ocean freight was returning to normal, contributing
to cost reductions. In summary, net sales in this segment were 453,613 million yen (8.0%
increase YoY), and operating income was 42,321 million yen (9.6% increase YoY).

Regarding the results of the fiscal year ending March 2025, we expect that net sales will
increase by 10.5% YoY to 501,300 million yen, and operating income will increase by
11.3% to 47,100 million yen.
Domestic sales of medical devices are expected to increase by 3,799 million yen annually,
owing to an increase in sales of infusion-related products, catheters, ventricular assist devices,and oxygenators, in addition to dialysis-related products. We will also contribute to community
healthcare by proposing a system that will be used for the work-style reform of healthcare
professionals, online examinations, and online instructions on the use of drugs.
Regarding pharmaceutical products, esomeprazole sales are expected to continue favorably.
In addition, as in this fiscal year, repricing of unprofitable products was exceptionally applied
to a large number of items in the NHI price revision. We expect to increase revenue by 6,536
million yen annually.
Regarding operating income, although the soaring prices of raw materials and the increasein domestic logistics costs are expected to continue, we expect an increase of 4,778 million
yen annually by optimizing expenses.

Net sales

Operating income(Millions of yen)

373,481(Millions of yen)

419,957

453,613

39,241

38,59942,321P OI N T

Acquisition of domestic market share for esomeprazole (Nexium AG) to about
57% (share within the generic: 67%).
Esomeprazole, launched in December 2022, is highly received by the market as areliable AG. We have achieved approximately 57% of the domestic market shareand will continue to maintain and expand its market share.

3/'22

3/'23

3/'24

3/'22

3/'23

3/'24

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section10

Medical-Related BusinessPharmaceutical-Related BusinessPharmaPackaging Business

Review of Operations

Medical-Related Business

TOPICSInternational businessDialysis-related business
Market trend and changes
The decline in the number of dialysis
patients worldwide before 2023 owing
to the spread of COVID-19 significantly
affected the dialysis market and facilitatedchanges in the medical device industry,
such as the shakeout of some competitors.
To address this, we attempted tostrengthen the internal structure byestablishing a stable production system,
optimizing overseas factories, anddeveloping and introducing new products.
The recovery from the COVID-19 pandemic
has led to a rise in the number of dialysis
patients and a favorable market environment.
Plans in the fiscal year ending March2025 include expanding the dialyzer lineup,
launching high-function dialysis machineswith full model changes, and renewing
contracts with major dialysis providers in
the U.S. Thus, it is expected to be a year of
great breakthroughs.

Rollout in 2024
• Renewal of supply contracts for the U.S. market
with a major U.S. provider
1.Significant increase in the purchase quantityof consumables
2.Full-scale introduction of dialysis machines
3.Strengthening long-term partnerships(introduction of new technologies)• Winning large-scale bids
Winning centralized purchases by the Chinese
government, winning the Canadian governmentbid, etc.
• Expansion of dialyzer production capacity
The start of operation at the Odate 7th Plant andincreased production in China and India.
• Expansion of dialyzers
Production of Super-high-flux Elisio-HX andsingle use• New type dialysis machines
Diamax WOW and Nephroflow software• Dialysate, RO unit
Expansion of the dialysate plant in the U.S. and a
new RO unit in the German plant• Dialysis access device
Global deployment of safe dialysis catheters(plastic needles)

Renewal of DIAMAX, launch in Latin America and Asia
We implemented a major model change to DIAMAX (launched in 2003) for
the first time in approximately 20 years and newly launched DIAMAXTM
WOW. It will be available in the market in 2024 as a model for Latin Americaand Asia. This product reflects our previous experiences and know-how andmeets user needs.

DIAMAX™ WOW

Dialysis information management system NephroFlowTM
NephroFlowTM was launched as an information
User advantages
management system for dialysis machines. It is a
• Reduction in manual operations
cloud-based product in Europe that utilizes software• Ease of access to patient information
development technology and enables communication• Automation of manual entry
between dialysis machines, supporting the stabilization• Reduced administrative workof operations by establishing a dialysis operation flow.
We will deploy this product in various countries worldwide in a sequential manner tocontribute to the improvement of patients’ QOL and the sound management of dialysis centers.

Vascular businessWe have been developing the vascular business as a potential area,and during this period, we have entered the international market atfull scale. Additionally, in the fiscal year ending March 2025, scoring
balloons (NSE Aperta/NSE ALPHA) with reliable records and highevaluations will be introduced in Japan.
For NIRS IVUS, a diagnostic imaging device, we are currently
increasing the number of clinical staff members in the U.S. We plan
to utilize the network with KOLs* and have been making efforts toachieve dramatic growth.
We will promote registration by region: in existing markets, suchas China and Canada, and in developing markets, including India,
Latin America, and Asia.
* Key opinion leaders. Experts such as physicians who influence the promotion of
medical devices and drugs.

NSE Aperta

NSE ALPHA

Promotion of African businessWe have been trying to enter the African market, as it shows a very promising potential, witha population of 1.2 billion and GDP growth of 3.8% which is higher than the global average for2022. At the end of this period, we have nine sales offices in seven countries. Additionally, inthe fiscal year ending March 2025, we will establish a new base in Egypt and create a local
corporation with a base in Kenya.
In the future, we will combine the Middle East and European bases and strengthenorganizational cooperation by utilizing European resources while having a clear overview
of the market in the EMEA region.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section11

Medical-Related BusinessPharmaceutical-Related BusinessPharmaPackaging Business

Review of Operations

Pharmaceutical-Related BusinessNet sales ratio by dosage forms(Fiscal 2024)

74,320 million

Net sales Total ¥Orally Administered Drugs 46%

Others 5%External Preparations 6%

Injectables 44%

Contract-manufacturing
products/companies

Contract-manufacturing
products/companies

Contract-manufacturing
products/companies

357 items/39 companies

324 items/49 companies

46 items/15 companies

Overview of the fiscal year ended March 2024

Forecast and strategy for the fiscal year ending March 2025

In the Pharmaceutical-Related Business, the shipment and commercialization of multiple
new products started on a full scale in Japan. Regarding existing products, although thereceipt of orders, mainly generic products, decreased and contract manufacturing ended,sales are doing well owing to the effect of the revision of sales prices. As a result of the brisk
sales of Nipro JMI Pharma in Bangladesh, sales increased compared to the previous year.
Regarding operating income, revenue improved owing to an increased shipments associatedwith the effect of the distribution of testing operations after the start of operation of the Saitama
Testing Building and the shift of the higher costs to prices. However, profits significantly
decreased owing to the aforementioned end of the sales of contract manufacturing products
and a decrease in shipments, resulting in a decrease in profits YoY.
As a result, net sales in this segment were 74,320 million yen (2.2% increase YoY), andoperating income was 4,432 million yen (21.1% decrease YoY).

For the fiscal year ending March 2025, we expect net sales to increase by 9.3% YoY to 81,250
million yen and operating income to increase by 103.7% to 9,030 million yen.
The sales of domestic generic drugs, brand-name drugs, and long-listed products areaffected by the termination of contract manufacturing of some products. However, sales are
expected to increase by 6,112 million yen annually because the effects of the acquisition of newcontract products and the expansion of products launched in this period have a greater
negative impact. For Nipro JMI Pharma, an increase in sales of 717 million yen per year is expectedowing to the enhancement of the sales system and active expansion of sales channels.
Operating income is expected to increase by 4,598 million yen annually by revisingsales prices to appropriate levels, including maintaining and improving the production
system, strengthening the quality assurance system, and striving to reduce costs byimproving production efficiency.
We will not only expand production capacity through new capital investment but also improve
manufacturing efficiency by reducing the burden of testing operations and continue tostrengthen POINT the quality assurance system.

Net sales

Operating income(Millions of yen)

74,386(Millions of yen)

72,73474,320

9,826
5,615

3/'22

3/'23

3/'24

3/'22

3/'23

P OI N T
4,432

3/'24

Strengthening of quality control system Nipro Pharma Corporation
We attempted to reduce the burden of testing operations at each manufacturingsite, improve testing functions, and cultivate testing personnel associated withincreased production quantity and product items. A testing building, including
the QC training center, was established at the Nipro Pharma Saitama Site, andoperations began in December 2023. In March 2024, the Doshomachi Analysis
Center, established in Osaka City, began operations. Testing operations previously
conducted at each manufacturing site were also performed at these institutions.
Thus, we will increase the efficiency by leveling the testing capacity and reducing
the number of duplicate operations.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section12

Medical-Related BusinessPharmaceutical-Related BusinessPharmaPackaging Business

Review of Operations

Pharmaceutical-Related Business

TOPICS
Efforts to strengthen the production system

Strengthening production systems in injectable drug plants
The Nipro Pharma Corporation Ohmi Plant
The Nipro Group is committed to increasing and expanding its production capacity to address
issues associated with the expansion of contract manufacturing and the stable supply ofpharmaceutical products. The Nipro Pharma Ohmi Plant in Shiga Prefecture, completed in
April 2024, has the capacity to manufacture eight million double-chamber bags of antibiotic
drugs annually, and we aim to start shipments by 2024. The manufacturing building was
equipped with a seismic isolator, which is minimally affected by earthquakes, which enables
the stable and continuous production of pharmaceutical products.
As part of a second-phase plan, we are also constructing a vial manufacturing buildingthat can produce 40 million units annually. Generally, drugs are manufactured normally.
However, in the event of an infectious disease pandemic, we will switch to manufacturing
vaccines and therapeutic drugs at the government’s request and establish a system thatenables us to promptly supply them throughout the country.

Strengthening the increased production system in oral drug plants
Zensei Pharmaceutical Co., Ltd.
Zensei Pharmaceutical began operations in a new building at the Kishiwada Plant in April
2023, which expanded the testing area and the storage space and enhanced annual
production capacity to 2 billion tablets. In addition, production equipment such as appearance
inspection and packaging machines were introduced in an empty area in the Izumi Plant,
which increased annual production capacity to 2.5 billion tablets.
With the start of the operation of the production equipment introduced in fiscal 2024
at the Izumi Plant mentioned above, we plan to ship approximately 600 million tablets of
new contract products in fiscal 2025.

New packaging line at the Izumi Plant

The Nipro Pharma Ohmi Plant under constructionNIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section13

Medical-Related BusinessPharmaceutical-Related BusinessPharmaPackaging Business

Review of Operations

PharmaPackaging BusinessNet sales ratio by region(Fiscal 2024)

58,035 million

Net sales Total ¥
China
7.4%

Europe 43.4%

United States 24.4%

Japan 22.6%

India 2.2%

Overview of the fiscal year ended March 2024

Forecast and strategy for the fiscal year ending March 2025

In the PharmaPackaging Business, we expanded production of pharma packaging containers
and glass tubing and improved pricing to mitigate cost inflation. As measures to securerevenue, we actively engaged in market development for high-value-added products andparallelly improved productivity across plants and reduced procurement unit costs.
In the Japanese market, sales of glass products and other high profitable products suchas dissolving solution injection needles and infusion systems, remained solid. Sales foroverseas markets increased due to the optimization of unit sales prices and product mix, but
the post-COVID global destocking affected shipments of both glass tubing and pharma
packaging containers. In terms of profits, while the U.S. plants continued to maintain
operation efficiency, decrease in demand for vaccines in China and market price competitionin India led to lower profit.
As a result, net sales in this segment were 58,035 million yen (12.1% increase YoY), andoperating income was 2,452 million yen (10.5% decrease YoY).

Net sales are expected to reach 61,820 million yen, a 6.5% YoY increase due to the optimizationon the operating rate of glass tubing production and new equipment for sterilized glass
syringes. In terms of expenses, high manufacturing costs are inevitable due to reduced
production as global destocking affected some product groups. Although sales of profitablevalue-added products are growing, operating income is expected to remain at 2,600 million
yen, a 6.1% increase YoY.

Net sales

Operating income(Millions of yen)

(Millions of yen)

46,361

3/'22

51,754

3/'23

58,035

3/'24

2,889

2,739

3/'22

3/'23

2,452

3/'24

POI N T

Market environment and growth strategies
In addition to the vigorous development of injectable drugs, mainly biopharmaceuticals
and vaccines, the increasing population and sophistication of medical standards indeveloping countries are expected to lead the medium to long-term growth of themarket for medical containers. However at the same time, strict price competition
associated with global inflation, the post-COVID destocking effect, and pressure on
medical expenditures in many countries have limited growth in terms of profit.
Under such circumstances, it is important to capture growth opportunities andovercome adversity in profitability.
Firstly, to expand market share, we will further improve customer satisfaction
through proposal-based technical sales, enhancing global sales function
and cross-selling concepts. Meanwhile, to secure price competitiveness,
we prioritize product development and commercialization, in parallel with
reducing manufacturing costs and optimizing the supply chain.
Finally, we will maximize various development and sales resources of eachsubsidiary and improve investment effects on production facilities and R&D.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section14

Medical-Related BusinessPharmaceutical-Related BusinessPharmaPackaging Business

Review of Operations

PharmaPackaging Business

TOPICS

Establishment of stable supply system

Improvement of product portfolio

Full-scale operation of syringe washing and packaging line in the German plant
The syringe production plant in Nipro PharmaPackaging Germany has prepared for production
expansion to respond to the increased demand for syringes. In June 2023, a new syringe
washing and packaging line started operating on full scale. The production of bulk syringes
was gradually expanded, and high accuracy of syringe production for auto-injectors was
also introduced.
Among the syringe products, sterilized ready-to-use syringes have drawn many inquiries
from drugs manufacturers, and this line is expected to contribute to further improving customer
satisfaction by responding to a wide range of dimensions and specifications.

Single-use bags and aseptic connectors
Single-use bags are used for the cell culture of biopharmaceuticals
and for filling, transporting, and storing intermediates and drug
substances. They are provided in the form of process bags, NBS
bags and powder bags that are disposable to prevent contamination.
Further, they are customized with excellent assembly design andhigh quality that eliminates foreign substances. The aseptic
connector connects bag to bag or bag to device. This “Gender-less”
type is adopted to accommodate any assembly process, which isaligned to the Japanese government’s project for “strengthening
vaccine production system in biopharmaceuticals manufacturingfoundations.” We receive grants from the government for equipment
investments not only to produce parts for pharmaceuticals at normal
times, but also to cover production and supply of bags for vaccines
during emergencies.

Example ofsingle-use bag

Silicone-free sterilized syringes
Syringes are promising pharmaceutical packaging containers for
new drug development, and are expected to see a double-digit
growth in the market. However, glass containers coated withsilicone have a risk of causing aggregation of protein solutions on
biopharmaceuticals. We completed a supply system for silicone-freesyringes in September 2023, where we had reached the required
functions and quality by applying our original technology ineliminating the use of silicone on any part of the barrel, plunger, or
stopper. By adding this product to the D2FTM Series, we expect tohelp in solving the strong demand for pharmaceutical packaging
containers for drugs such as anticancer drugs, vaccines, and drugs
for immune system diseases.

Overall view of syringe production facility

Establishment of “local production for local consumption” system for cartridges
In addition to dental anesthetics, the demand for cartridges for insulin and GLP-1 is growing
worldwide. Our division continuously promotes the local production for local consumption
system by expanding production lines in France, and particularly countries with large
populations such as China and India.
Product image
and logoNIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section15

Outline of the Medium-Term Management Plan
Progress on the Major KPIs
Approaches to SDGs

Medium-Term Management Plan

Outline of the Medium-Term Management Plan
Management Policy⑥ Enhancement of cellular medicine business

Promote global expansion of our business based on the idea of local production for local
consumption, aiming to achieve the world’s top-class product competitiveness and market
share from a user-needs perspective even in today’s turbulent times.

⑦ Development of seeds of new businesses

Priority Tasks

Policy on Organization, HR Development, and IT Systems➊ Protecting a corporate culture that provides opportunities to motivated people➋ Making decisions from the end-user’s perspective is our top priority➌ Upholding the Sanpoyoshi (Win-Win-Win for users, society, and the company) principle➍ Sharing information about each step of the Plan-Do-Check-Act (PDCA) process with all
employees so that they can manage the PDCA cycle with a sense of ownership➎ Becoming a company wherein the organization managers recognize the gap between
theory and reality and can lead their staff to understand it

Overseas holdings structure• Establish holdings in Europe, China, and the U.S. to realize business management by regional
headquarters, and matrix management aiming at rapid business decision-making by each
operating company• Centralize compliance, financial, and tax management• Improve knowledge accumulation and efficiency by consolidating indirect divisions• New business incubation

Enhancements

Human resources development• Nurture training in the medical field to foster a sense of value that enables us to always think
and act from the user’s viewpoint• Introduction of the FISH! philosophy, which aims to revitalize the workplace and encourage
employees to thrive in their work, and promote employee motivation• Follow-up training for younger employees, training for different levels of qualifications, andother necessary training for each stage of employment• Focus on the development of global human resources through selective language training,in-house language classes, and a self-development support system for languages• Aim to create a workplace where each employee can maximize their abilities regardless ofrace, nationality, gender, or age; conduct seminars to promote women’s activities; andorganize exchange meetings to build networks among international employees• Establish a company-wide education and training system to raise compliance awareness• Considering the physical and mental health of each employee, the “Nipro Health Declaration”
was issued in September 2018, and anti-smoking measures, mental health measures,workstyle reforms, and workplace revitalization activities have been promoted① Challenge of becoming the No. 1 manufacturer contributing to regional healthcare in theJapanese market
Providing comprehensive medical infrastructure that connects patients, their families, hospitals,
and pharmacies, as well as offering medical equipment and pharmaceuticals that meet medical
needs in the marketplace② Top share in the global market for dialyzers

Expanding the company's direct sales network and training centers, and accelerating the operation of
our own dialysis centers in emerging countries③ Deployment of vascular products to the global market and entering new areas in thedomestic market

Establishing a sales network for existing products in the U.S. market with a view to expand globally, andaiming for a full range of products in the domestic market in the cerebrovascular and arrhythmia fields④ Deployment of the drug contract manufacturing business to overseas markets
Promoting out-licensing of our GE products in the Chinese market and expanding business in the
U.S. market⑤ Development of high-value-added products and reduction of manufacturing costs in the
PharmaPackaging business
Developing high-quality products for biopharmaceuticals and reducing manufacturing costs byautomating the manufacturing process

Promoting manufacturing automation and expanding business into the European and American markets
Business expansion into surgical products, electromagnetic wave therapy products, active
pharmaceutical ingredients (APIs), and pharmaceuticals in new fields

IT systems• Review system functions to support management efficiently and expeditiously• Enhance security against cyber-attacks, such as unauthorized remittance, information leaks
by targeted attacks, and ransomware• Develop an information infrastructure realizing a work style not confined by time and place,
improving labor productivity and employee satisfactionNIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section16

Outline of the Medium-Term Management Plan
Progress on the Major KPIs
Approaches to SDGs

Medium-Term Management Plan

Progress on the Major KPIs
KPIs for Fiscal 2025

Progress by the fiscal year ended March 2024 and forecast for the final year

Guidelines for Fiscal 2025

Sales growth rate①
The average annual sales growth rate from fiscal 2021 to fiscal 2025 is projected to be 7.8% and is expected to achieve the target.
By segment, sales growth in domestic business is projected to reach the target of 5.7%, and that in international business andPharmaPackaging business are forecast to be 12.9% and 11.3%, respectively, significantly exceeding the target of 8.0%. Meanwhile, sales
growth in the pharmaceuticals and vascular businesses is forecasted to fall short of the target at 2.9% and (1.9%), respectively.
In international business, sales of dialyzers in the U.S., Europe, China, and other Asian countries, and sales of dialysis equipment in Central
and South America greatly contributed to sales growth. In PharmaPackaging business, sales growth was driven by increased sales of vials for
vaccines owing to COVID-19-related special demand from 2020, as well as sales of glass tubing and vials for biopharmaceuticals in the U.S. andEurope. In the vascular business, sales increased in China but were forecast not to reach the target owing to the decline in overall sales due tothe COVID-19 pandemic and new product launches by competitors. In pharmaceuticals, sales are forecast not to achieve the target because of
the earthquake damage to the oral drug production facility in fiscal 2021, the termination of contract manufacturing of unprofitable products, and①
inventory adjustment associated with quality problems of other companies in fiscal 2022.

Net sales

Average annual growth of 7.0+%

OperatingincomeAverage annual growth of 7.0+%

Operatingincome margin

9.0+%① Net sales/Operating income margin
Net sales (Left)
Operating income margin (Right)(100 M Yen)

(%)

8,000

10.0

6,450

6,000
4,000

7.5
5.0

5.0

2,000
0

2.5
3/’21 3/’22 3/’23 3/’24 3/’25(Forecast)

3/’25(Plan)

0.0

Operating income margin
The operating income margin is projected to reach 5.0% in fiscal 2025. The operating income margin has not exceeded the target level of 9.0% in
any year, and, owing partly to the spread of the COVID-19 infection and inflation, it has remained below the target, peaking at 6.1% in fiscal 2021.
By segment, the operating income margin in international business has remained above the target level of 9.0% except for the current fiscal
year, although overseas container logistics costs during the COVID-19 pandemic became a burden. In pharmaceuticals, the profit margin
declined in the previous and current fiscal years because of the increase in manufacturing costs associated with inflation and the yen’s①
depreciation; however, it is expected to recover in fiscal 2025.
① Sales growth rate and operating income margin: comparison of the plan and the actual results

Sales growth rate

Operating income margin(%)

2019-2024 CAGR

Fiscal 2025 (Plan)

Difference between planned andactual forecast CAGR

Domestic business

+5.7

+5.0

+0.7

Overseas business

+12.9

+8.0

＋4.9

Vascular business

(1.9)

+15.0

(16.9)

Pharmaceutical business

+2.9

+5.0

(2.1)

PharmaPackaging business

+11.3

+8.0

＋3.3

Regenerative medicines
business

+40.5

+2.4

+38.1

Total

+7.8

+7.0

+0.8

Total

+5.0

+9.0

(4.0)

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section17

Outline of the Medium-Term Management Plan
Progress on the Major KPIs
Approaches to SDGs

Medium-Term Management Plan

Progress on the Major KPIs
KPIs for Fiscal 2025

Progress by the fiscal year ended March 2024 and forecast for the final year

Guidelines for Fiscal 2025

Net debt/EBITDA ratio
Net debt for fiscal 2025 is projected to exceed the expected 450 billion yen to reach 474.6 billion yen owing to the increase in interest-bearing
debt associated with increased capital investment. Although net debt has been increasing since fiscal 2022, the Company plans to reduce it to②
10.5% YoY in fiscal 2025.
For earnings before interest, taxes, depreciation, and amortization (EBITDA) targeting 100 billion yen or higher per year, operating income
was expected to be 64.1 billion yen and the depreciation cost including goodwill amortization was expected to be 51.8 billion yen. However,operating income is not reaching the target while the depreciation cost amounts to 60.0 billion yen; therefore, EBITDA is expected to be③
95.1 billion yen.
Consequently, the net debt/EBITDA ratio is projected to be 4.99x, which is within the target level of below 5.0x.

Net debt

Maintain around ¥450,000 M

EBITDA¥100,000+ M or higher

Aiming for a level ofNet debt/
EBITDA ratioLess than X 5② Net debt, Net debt/EBITDA
Net debt (Left)(100 M Yen)

6,000

Net debt/EBITDA (Right)(Times)

10.0

4,746

4,500

7.5

5.0

3,000

5.0
2.5

1,500
0

3/’21 3/’22 3/’23 3/’24 3/’25(Forecast)

3/’25(Plan)③ Capital investment and EBITDA
CAPEX(100 M Yen)

1,200

0.0

Capital investment and EBITDA
In the 5 years of the Medium-Term Management Plan, EBITDA of 441.7 billion yen was planned, which is 1.38 times the capital investment of 320
billion yen, aiming for a 6.7% average annual growth rate of EBITDA/capital investment.
The actual capital investment for the 5 years amounted to 388.8 billion yen, exceeding the target by 68.8 billion yen, and EBITDA amounted
to 383.8 billion yen, falling short of the target by 57.9 billion yen. The primary reason for not achieving the target EBITDA is the sluggish growthin operating income resulting from increased facility construction costs owing to inflation and rising raw materials and energy prices, despite theincrease in capital investment to address the rising demand for dialyzers.
The Company will carefully select future investment proposals to enhance investment efficiency and improve EBITDA and operating②
cash flows.
② CAPEX and EBITDA: comparison of the plan and the actual results

624 951

Medical

900
600

Pharmaceutical

300
0

Plan

2020–2023 Actual+2024 Forecast

CAPEX

1,680

1,958

EBITDA

2,324

2,433

EBITDA

3/’21 3/’22 3/’23 3/’24 3/’25(Forecast)

3/’25(Plan)

PharmaPackaging

Regenerative
medicine

Total

CAPEX

920

1,153

EBITDA

1,506

1,115

CAPEX

300

606

EBITDA

359

384

CAPEX

300

263

EBITDA

228

(94)

CAPEX

3,200

3,888

EBITDA

4,417

3,838

(¥100 million)

The Company proactively invested in the expansion and reinforcement of dialyzer manufacturing lines
and acquisition of overseas dialysis centers. Supported by the yen’s depreciation, the increase inoverseas sales profit especially contributed to higher EBITDA, whereas the profit from the domestic salesof medical devices did not grow; thus, EBITDA is not expected to cover the increased capital spending.
Although capital investment was carried out for both own brand and contract manufacturing to expand
sales, the resulting EBITDA is not expected to achieve its target. The Company aims to improve EBITDA
by strengthening the quality control system to increase operating income.
To capture sales demand, the amount of 5-year capital investment was doubled from the initial plan.
However, the resulting EBITDA is expected to only slightly exceed the initial target. The Company willfurther expand sales to increase the profit margin, with the aim of boosting EBITDA.
During the two years of the COVID-19 pandemic, it has been difficult to use STEMIRAC while prioritizing
severely affected patients; thus, the initially targeted sales profit has not been achieved. The Company
will gain sales profits through an application for full approval of STEMIRAC in 2025 and the expansion ofaffiliated hospitals to boost EBITDA.
As per the main text.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section18

Outline of the Medium-Term Management Plan
Progress on the Major KPIs
Approaches to SDGs

Medium-Term Management Plan

Progress on the Major KPIs
KPIs for Fiscal 2025

Progress by the fiscal year ended March 2024 and forecast for the final year

Guidelines for Fiscal 2025

ROE
Return on equity (ROE) for fiscal 2025 is projected to be 6.8%. Although ROE for fiscal 2021 was 9.2% and that for fiscal 2022 was 7.8%, thesewere outliers resulting from decreased equity capital due to the decline in profit in fiscal 2020. ROE has not exceeded the target of 14.0% in any④
year. After reaching a bottom of 2.3% in the previous fiscal year, ROE has been improving since the current fiscal year.
The primary reason for not achieving the target ROE is that net profit attributable to the owners of the parent company is expected to
be 15.8 billion yen in the current fiscal year, which is lower than the target by 29.8 billion yen. This is attributable to the projected operating③
income of 32.5 billion yen, which falls short of the target by 31.6 billion yen.
The Company will further enhance ROE by expanding the operating income.

EPS*¥200 or higher

ROE

14.0+%④ EPS/ROEEPS (Left)

ROE (Right)

(Yen)

(%)

200

20.0

150

15.0

96.88

100

10.0

6.8

5.0

50
0

3/’21 3/’22 3/’23 3/’24 3/’25(Forecast)

3/’25(Plan)

0.0* EPS: Earnings per share

Guidelines for Fiscal 2025
Shareholder
return(dividend
payout ratio)

Maintain 35.0% (Fiscal 2024 -)⑤ Annual dividend/Dividend payout ratio
Annual dividend (Left)
Dividend payout ratio (Right)

Dividend payout ratio
Although the annual dividend for fiscal 2025 was planned to be 70 yen, it is expected to be 32 yen owing to EPS in the current fiscal year not④ In the previous fiscal year, owing to inflation and the yen’s depreciation associated with the COVID-19 pandemic, thereaching 200 yen.
Company experienced a sharp rise in raw materials costs and energy prices and overseas logistics costs. Additionally, net profit attributable inthe current fiscal year to the owners of the parent company declined significantly owing to overseas inflation accounting and the tax effects ofloss-making subsidiaries. Consequently, the EPS fell to 28 yen, but the annual dividend amounted to 22 yen by increasing the dividend payout⑤ Further, in the current fiscal year, the Company has changed its dividend policy to integrate profit, which is the basis forratio to 78.4%.
dividends, into consolidated net profit to maintain a dividend payout ratio of 35%, and has set the lower limit of the annual dividend to 25 yen.
The Company will continue to increase its sales activities while improving cost efficiency to increase profit, aiming to maintain stabledividend payments.
③ YoY comparison of the accounts from operating income onwards

20
0

20.0
3/’21 3/’22 3/’23 3/’24 3/’25(Forecast)

3/’25(Plan)

0.0

Fiscal 2025
(plan)

Difference between
plan and budget

177.3

223.4

325.0

641.0

(316.0)(30.6)(23.8)(28.3)(49.0)(4.0)(45.0)

Extraordinary loss (income)(87.5)(43.4)

14.3

(2.9)

10.0

(18.0)

28.0

24.8

81.8

108.4

70.5

118.0

149.0

(31.0)

142.1

134.6

45.7

111.1

158.0

456.0

(298.0)1,549.1

1,731.3

1,957.8

2,194.9

2,321.2

3,257.1(935.9)

9.2

7.8

2.3

5.1

6.8

14.0

(7.2)

Profit40.0

Fiscal 2025
(budget)

238.8

(%)

32

Fiscal 2024

(13.6)

80.0

40

Fiscal 2023

276.3

80

60.0

Fiscal 2022

Operating income

(Yen)

35.0

Fiscal 2021

Non-operating expenses (income)Corporate tax, etc.

60(¥100 million)

Shareholders’ equity*
ROE(%)*Shareholders’ equity is the average during the period, calculated as (beginning of period + end of period) / 2

Effective tax rate(%)

Fiscal 2021

Fiscal 2022

Fiscal 2023

Fiscal 2024

Fiscal 2025 (budget)

14.2

35.2

64.6

36.7

41.0

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section19

Outline of the Medium-Term Management Plan
Progress on the Major KPIs
Approaches to SDGs

Medium-Term Management Plan

Approaches to SDGs
Social issues that we aim to solve through our business
Providing treatment topatients in remote areas withlimited access• In emerging countries, such as Latin America, dialysis clinics have been set up in suburban areas to provide dialysis treatment topatients living in remote areas, where it is more convenient for them to receive dialysis treatment.
• In Southeast Asia and Africa, dialysis clinics have been set up in urban areas to provide patients with high-quality treatment.

Preventing medical accidents
at medical institutions• The company sells safety products to prevent medical accidents while using medical equipment.
• They include winged needles that prevent needlestick accidents, colored syringes that can be distinguished by color to prevent
mix-ups, and pre-fillable syringes and kit preparations that reduce the risk of foreign matter contamination, bacterial contamination,and needlestick accidents.

Providing safe and secure
medicines for all• The company promotes products that can be used without difficulty, regardless of age or disability.
• The company offers a range of products that enable those with visual difficulties to identify tablets, to write down medication
instructions and medication dates, and to prepare PTP sheets for patients with reduced dexterity.

Dealing with new infections• The company sells products that are in high demand worldwide when new infectious diseases, such as COVID-19, become rampant.
• Surgical masks, medical rubber gloves, tubes and other consumables, blood collection tubes, and disinfectants are stocked.

Stable supply of
antimicrobial agents that are
in short supply• We continue to manufacture and market antimicrobials, although they are unprofitable and there are concerns about the supply of APIs.
• As a precaution against the future supply of APIs, we are developing some of them in-house.

Providing a medical
environment for patients wholive in remote or are difficult
to access locations• The company sells a cloud-based monitoring system (Nipro Heart Line™) that uses ICT to provide real-time information on patients,
even in remote locations.
• The system enables patients with chronic diseases to receive regular and continuous medical care, sharing vital information in realtime, and sending alerts when abnormal values are detected to remotely check the patient’s condition.

Enhancing the laborproductivity of healthcare
professionals• The company sells the HN LINE™, which solves business problems by linking medical device information with electronic medical records.
• The company hopes to support the reduction of labor, efficiency of nursing operations in hospitals, and work-style reforms ofhealthcare professionals.

Minimizing the environmental
impact of waste• The heat generated when industrial waste in the manufacturing process is burned in incinerators is reused to generate electricity andhot water, and the company also emphasizes reducing the volume of industrial waste.
• We promote a paperless office by digitizing internal documents and eliminating meeting materials to reduce the use of paper andother materials.

Promoting efficient use ofnatural resources• To reduce the global environmental impact, the company promotes the introduction of solar power generation at its plants as part ofenergy conservation efforts.
• At Nipro Thailand, a solar power generation system was introduced in 2018 and the electricity generated is used for medical
device manufacturing.

Providing rewarding work
opportunities for all• Training for women in supervisory positions and above is conducted so that they can build a career design with strategies for their workand lives.
• For international students who have received job offers to seamlessly join the company, exchange meetings are held for the purpose of
networking with senior international employees prior to joining.

Related SDGsNIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section20

Investment Status of Social Bonds
and Loans

Social Bond Reporting

Investment Status of Social Bonds and Loans
Overview of social bonds
Our business contributes to improving the health and quality of life of people around the world
through the stable supply of medical devices, pharmaceuticals, and other essential social
initiatives. We believe that these efforts contribute to solving social issues as social projects.
To raise funds that contribute to these efforts as social bonds, we have establisheda Social Bond Framework and a Social Finance Framework* based on the International CapitalMarket Association (ICMA) Social Bond Principles.
In line with these frameworks, we raise funds for businesses that contribute to solvingsocial problems by issuing (1) social CBs, (2) social bonds, and (3) social loans.
* The company has obtained a “second opinion” from Rating and Investment Information, Inc. as a third-party evaluation.

(1) Social CBs
Our corporate bonds are positioned as “convertible bonds” (CBs) that the bondholders canconvert into our shares at a predetermined price. By setting the conversion value higher
than the stock price at the time of issuance, the issue of corporate bonds is expected to beeffective in protecting the interests of existing shareholders and maintaining financial safety.
Thus, we will realize proactive investment in projects with high social contribution.

Issued amount

Nipro Corporation Euro-yen denominated convertible bond with a maturity
in 2026 (social convertible bonds) “Social CB”¥30,000 million

Period5 years

Interest rate0%

Conversion value¥1,430

Payment date

September 27, 2021

Use of funds

Investment in manufacturing facilities of medical devices

Corporate bond name(2) Social bond
The funds raised from our corporate bonds will be invested in projects with a highsocial contribution.

Issued amount

Nipro Corporation 13th Unsecured Bond Social Bond
(with an interbond pari passu clause)¥10,000 million

Period5 years

Interest rate

1.088%

Payment date

October 23, 2023

Use of funds

Addition of a dialyzer production line at the Odate 7th Plant

Corporate bond name(3) Social loan
The purpose of this loan is to allocate funds to businesses that contribute to the resolution or
mitigation of social issues.
The funds raised from this loan enable us to invest actively in projects with highsocial feasibility.
Financial institutions/
AmountInterest
Organizers(million yen)rate
Nippon Life
Insurance
Company
A syndicate loanorganized by
Resona BankA syndicate loanorganized by
Norinchukin Bank

1,500
7,400
2,600
10,000Date ofborrowing

Repayment
date

Repayment method

Collateral
Warranty

Fixedinterestrate

Jul 10,2023

Jun 30, 2030

Installment repayment
every three months

No collateralNo warranty

Variableinterestrate

Jul 31,
2023

BulletNo collateralNo warranty

Variableinterestrate

Jul 31,
2023

Jul 31, 2028

BulletNo collateralNo warranty

Mar 31, 2032

Installment repayment
every three months
after the start of theterm loan period

No collateralNo warranty

Nov 30,2023

Nov 30, 2028

Installment repayment
every three months

No collateralNo warranty

Mar 29,2024

Mar 30, 2029

Installment repayment
every three months

No collateralNo warranty

A syndicate loan
with a commitment
period organized by
Shiga Bank

3,500

SBI Shinsei Bank

2,000

Variableinterest
rate

3,300

Variableinterest
rate

500

Fixed
interest
rate

6,500

Credit Agricole

Variableinterestrate

Oct 31,
2023
Mar 29,2024

Jul 31, 2028
Jul 31, 2030

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Investment Status of Social Bonds
and Loans

Social Bond Reporting

Investment Status of Social Bonds and Loans
Funding appropriation status
The status of appropriation of funds is as follows.
The funds from (1) social CBs, (2) social bonds, and (3) social loans have been
fully allocated.
(1) Social CB updated part
Amount(million yen)

Details of allocation

Domestic
business

13,601

Building Plant No. 7 associated with increased production of
PES/FB dialyzers in the Odate Plant.

Use

Project type

Amount(million yen)

Details of allocationNew
investment

Domestic
business

10,000Adding production equipment to plant No. 7 associated withincreased production of PES/FB dialyzers in the Odate Plant.

Details of allocation

Use

Project typeNew
investment(2) Social bonds(3) Allocation status of funds
Use

Project type

Amount(million yen)New
investment

International
business

3,930

NMC dialysis medical devices and dialysis clinic facilities

New
investment

Pharmaceuticalbusiness

21,360

The NPP Ohmi Plant

New
investment

Pharmaceuticalbusiness

3,760

The Zensei Izumi Plant

New
investment

PP business

5,160

NPG syringe production facility

New
investment

PP business

3,090

NPF Pegasus Project

Financial/Data
Section21

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section22

Investment Status of Social Bonds
and Loans

Social Bond Reporting

Investment Status of Social Bonds and Loans
Progress of each project

Medical-Related Business(Japan)Related SDGs

Main businesses
We develop, manufacture, and sell medical devices, generic and cellular pharmaceuticals
in Japan.
Our main medical device products are dialysis products; however, we also provide
products for treating various diseases and products with safety measures. Further, we have awide range of our own branded generic drugs, including oral, injectable, and topical products.
We offer universally designed products, such as orally disintegrating tablets that can beswallowed without water, tablets that can be distinguished by fingertips, and packaging that
includes a section for medication instructions and the date of administration. For cellular
medicines, we provide autologous marrow mesenchymal stem cells for the treatment of spinal
cord injury.
Target social issues• Help life support, health improvement, and quality of life for patients requiring dialysis• Prevent medical accidents such as needlesticks, foreign substances/bacterial contamination,and reduction of the burden on healthcare workers• Reduce obstacles in medication for patients with manual or visual impairments• Provide an ICT-based medical care system to patients who are unable to visit hospitals due
to disasters or residence in remote areas• Improve the health and life of patients with spinal cord injuries

Approach to social issues (Output indicators)
The funds raised were used as capital investment to meet market needs in manufacturing
medical devices, pharmaceuticals, and cellular medicines. Please note that there is a time lag
before the invested facilities become operational and the manufacturing capacity increases.

Percentage increase in thequantity of medical
devices manufactured*1

After the launch of a new production line, the production volume of dialyzers at
the Odate Plant increased; however, the production volume of consumables,such as needles for injection and dialysis, decreased. Consequently, the overall
manufacturing performance of medical devices for the domestic market hasleveled off at 100% YoY.

Percentage increase in thequantity of in-house brandgenerics manufactured*2

The manufacturing performance has decreased to 80% since the previous year
due to the withdrawal of unprofitable oral and topical drugs from the market.

Manufacturing capacity ofcellular medicines

Since the establishment of Sapporo CPF, the manufacturing capacity for cellular
drugs has remained at the same level (250 units).

Outcome of improvement of issues (Outcome indicators)
Percentage increase in thequantity of medical
devices sold*1

The sales performance has decreased to 99% of the previous year due to thedecreased sales of consumables such as dialysis needles and syringes.

Percentage increase in thequantity of in-house brandgenerics sold*2

The sales performance of oral drugs has increased to 111% compared to theprevious year due to the increased sales of Nexium AG.

Quantity of cellular
medicines sold

The sales volume of cellular drugs has reached 52 units, with an increased
volume delivered to hospitals due to the mitigation of the impact of COVID-19.

*1 Percentage increase in the quantity of medical devices manufactured and sold was calculated by selecting themain products, dialyzers, blood circuits, dialysis needles (AVF), winged needles (PSV), and syringes. In order toalign the different unit bases, the quantity was calculated as a weighted average of unit price and compared tothe previous year.
*2 Percentage increase in the quantity of in-house brand generics manufactured and sold was calculated as aweighted average of unit price to align the different units of oral, injectable, and topical formulations comparedto the previous year.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section23

Investment Status of Social Bonds
and Loans

Social Bond Reporting

Investment Status of Social Bonds and Loans
Medical-Related Business(Global)Related SDGs

Main businesses
We develop, manufacture, and sell medical devices overseas. In addition, we sell pharmaceuticalproducts, and also open and operate dialysis centers and training centers. Our main medical
device products are dialysis products; however, we also provide products for treating various
diseases and products with safety measures. Pharmaceuticals provide dialysis solutions usedin dialysis treatment. Dialysis centers are specialized clinics that provide dialysis treatment
to patients. Training centers are training facilities for healthcare professionals in dialysis
treatment techniques and provide an improved on-site medical environment by incorporating
feedback and requests obtained during the training into product and technology improvements.
Target social issues• Help life support, health improvement, and quality of life for patients requiring dialysis• Prevent medical accidents such as needlesticks, foreign substances/bacterial contamination,and reduction of the burden on healthcare workers• Provide medical facilities to patients living in remote regions in emerging countries• Provide advanced medical care to patients living in urban areas in developing countries• Provide therapeutic equipment, examination products, and infection control products thatcan prevent the spread of infectious diseases

Approach to social issues (Output indicators)
The funds raised were used for capital investment to meet the market needs in the
manufacturing of medical devices. Please note that there is a time lag before the invested
facilities become operational and the manufacturing capacity increases.
Percentage increase in thequantity of medical
devices manufactured*3

New dialyzer production lines became operational at the Hefei and Odate Plants.
In addition, the increased demand for dialysis needles triggered a production
ramp-up, resulting in a 102% YoY increase in the manufacture of medical
devices for overseas markets.

Dialysis Center patient
capacity*4

The capacity of dialysis centers has decreased to 93% from the previous year;
this is due to the closure of 13 facilities, mainly in Africa, by the end of thisfiscal year.

Number of training centers

A total of 10 training centers were added in Nigeria and China during the fiscal
year, bringing the total number of training centers to 37 worldwide.

Outcome of improvement of issues (Outcome indicators)
Percentage increase in thequantity of medical
devices sold*3

Sales of dialyzers were high in Western countries and Asia. Dialysis needles
and blood circuits also witnessed an increase, leading to a 101% YoY increasein sales.

Number of patients treatedat Dialysis Centers*4

The number of patients treated at dialysis centers decreased to 52% of theprevious level due to the termination of the contract in India.

Number of training center
users

37,335 healthcare professionals have received training, totaling 37,335 mandays at training centers in 37 locations worldwide.

*3 Percentage increase in the quantity of medical devices manufactured and sold was calculated by selecting themain products, dialyzers, blood circuits, dialysis needles (AVF), winged needles (PSV), and syringes. In order toalign the different unit bases, the quantity was calculated as a weighted average of unit price and compared tothe previous year.
*4 Number of dialysis centers and patients treated at dialysis centers was calculated as the percentage
yearly increase.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
Section24

Investment Status of Social Bonds
and Loans

Social Bond Reporting

Investment Status of Social Bonds and Loans
Pharmaceutical-Related Business

Related SDGs

PharmaPackaging Business

Related SDGs

Main businesses
We are a contract manufacturer of ethical drugs licensed by domestic and overseas
pharmaceutical companies. We have manufacturing facilities in Japan, the U.S., and Europethat are GMP-compliant in each of the three regions. The company can manufacture a wide
range of products, including injectable, oral, and external dosage forms, from small-lot
study drugs to mass production after launch. We also develop formulations, such as orally
disintegrating tablets, as well as slow-release and transdermal-absorption formulations. We
can manufacture pre-filled syringes and double-chamber bags, which are combination
products with medical containers. We also handle contracted inspection and packaging
processes for products licensed overseas, where pharmaceutical companies sell
pharmaceutical products formulated overseas after inspection and packaging in Japan.

Main businesses
We develop, manufacture, and sell pharmaceutical packaging containers and glass tubing, theraw materials for pharmaceutical packaging containers.
For pharmaceutical packaging containers, we provide molded components such as vials,
syringes, rubber stoppers, and devices used to administer pharmaceuticals. Packaging
containers can be customized to meet the quality requirements of products ranging fromgeneral pharmaceutical products to biopharmaceuticals and nucleic acid drugs. The raw
materials, glass tubing, is a glass material that meets the standards for primary pharmaceuticalglass containers specified in the Japanese, U.S., and European Pharmacopoeias. We sell glass
tubing to Japan as an agency of Nippon Electric Glass Co., Ltd. We manufacture our own glass
tubing in the U.S., France, India, and China and sell it worldwide.

Target social issues• Contribute to a stable supply of pharmaceuticals by supporting a wide range of dosage
forms and production scales• Contribute to healthcare cost reduction by reducing manufacturing costs through acollective contract of manufacturing pharmaceuticals for many companies

Target social issues• Provide essential products for pharmaceutical manufacturing, contributing to a stablesupply of pharmaceuticals and labor saving in the formulation process• Reduce the burden on healthcare professionals by developing products that meet the needsof the medical field• Contribute to the reduction of medical accidents such as mix-ups and contamination offoreign substances by creating kits of pharmaceutical products

Approach to social issues (Output indicators)
The procured funds were used as capital investment in the contract manufacturing ofpharmaceutical products to meet the market needs. Please note that there is a time lag before
the invested facilities become operational and the manufacturing capacity increases.
Percentage increase in thequantity of contract drugs
manufactured*5

The measures taken for quality improvement in manufacturing plants prevented
these plants from keeping up with customer orders, resulting in an 87% YoYdecrease in the manufacturing volume.

Approach to social issues (Output indicators)
The procured funds were used as capital investment to meet the market needs of manufacturing
pharmaceutical packaging containers. Please note that there is a time lag before the invested
facilities become operational and the manufacturing capacity increases.
Percentage increase in thequantity of products
manufactured*6

The increased demand for high value-added products in Europe resulted in a
101% YoY increase in manufacturing volume.

Outcome of improvement of issues (Outcome indicators)
Percentage increase in
the quantity of contract
drugs shipped*5

Despite the launch of several new contracted projects, the number of orders
for existing products decreased, resulting in a 91% YoY decrease in
manufacturing volume. This was due to a product lineup reorganization
implemented by the suppliers and the termination of contract manufacturing.

*5 Percentage increase in the quantity of contract drugs manufactured and shipped was calculated as aweighted average of unit price to align the different units of oral, injectable, and topical formulations
compared to the previous year.

Outcome of improvement of issues (Outcome indicators)
Percentage increase in thequantity of products sold*6

The decreased demand for some components of syringes contributed to a 94%
YoY decrease in sales volume.

*6 Percentage increase in the quantity of products manufactured and sold was calculated as a weighted
average of unit price to align the different units of ampoules, vials, and syringes, which are the main
products, compared to the previous year.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

25
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Sustainability of Nipro
Basic attitude
The Nipro Group is working to promote sustainability management to resolve various social
issues through business.

Extract ESG issues

Construct thesupervising system for
the Board of Directors

Sustainability promotion system
The Sustainability Committee is divided into the Environment Committee, Social Committee,
and Governance Committee. They manage and promote the ESG initiatives in each businessdivision (all group companies).
The status of management and promotion is put on the agenda of the Board of Directors
every quarter or so. Accordingly, the strategy is discussed, guidance is provided, and KPI
setting and its progress are deliberated upon. The contents are relayed to the businessdivision through each committee.
Sustainability promotion system

Board of directors
Official supervisor of climate change-related issues among the Board of Directors

President & Representative Director
Deliberation matters are put on
the agenda and deliberated upon

Sustainability of
Nipro
Set mid- andlong-term goals

Reform thecompany-wide policy

Appointment

Chief Sustainability Officer (CSO)
Reporting the deliberation matters
Information
disclosure

Establish theexecutive committee

Increase corporate value

Appointment

Sustainability Committee
Secretariat: Sustainability promotion dept., Human resources dept. Governance control dept.

Environmental
Committee

Social Committee

Each business division

GovernanceCommittee

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

26
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Sustainability of Nipro
Cases of sustainability-related initiatives
Case

1

Application of Non-Fossil Certificate
The Nipro Group is reducing its GHG emissions
by utilizing a Non-Fossil Certificate thatreflects the CO2-free environmental value of
renewable energy power.

Initiatives to reducegreenhouse gas emission

CO2-free energy power at production bases
The Nipro Group is taking multiple steps toachieve net zero greenhouse gas (GHG)
emissions by 2045 in Scope 1 and 2, which
cover our direct emissions.
One such step involves switching to theuse of power derived from renewable energy
at domestic and overseas plants. In particular,
the Kondo Plant of Nipro Medical Industries
Ltd. (Japan), a domestic group company,
switched to the use of power derived from
100% renewable energy from fiscal 2022.
The Izumi Plant of Zensei PharmaceuticalCo., Ltd. also started doing the same fromfiscal 2022.
To achieve net zero GHG emissions in
Scope 1 and 2 in 2045, the Nipro Group willcontinue to actively work on reducing GHG
emissions, including a switch to renewableenergy, in the future.

Kondo plantIzumi plant
Ratio of renewable energy* power ratio
in the energy consumption

11.9%(Results in fiscal 2024)* Renewable energy: Power derived from permanently
usable energy, such as sunlight,
wind, and hydraulic power

Private generation of energy
In order to carry out continuous businessactivities, the Nipro Group is privately
generating energy for production activities
at multiple plants. Some bases have solar
panels and private power generation
facilities. In particular at the Odate Plant of
Nipro Pharma Corporation (Japan), a “biomass
boiler” has been in operation since fiscal
2012; in this boiler, thinned wood chips areburned instead of fossil fuels to turn a turbine
to generate power. This initiative is a joint
public and private‒sector project driven by
Odate City (which has maximized the use ofunused thinned wood by establishing awoody biomass processing and distribution
business) and Nipro Pharma. The Nipro Groupis making efforts to contribute to the creationof a sustainable community by participating inthis project.

Effect of reducing GHG emissions

Reduced 65,100 t-CO2(Results in fiscal 2024)

Biomass boiler, Nipro Pharma Odate Plant
Effect of reducing GHG emissions

Reduced 3,905 t-CO2(based on the results in fiscal 2024,
conversion to LNG)NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

27
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Sustainability of Nipro
Case

2

Utilization of all-oxyfuel combustion
technology for manufacturing glass tubing

At the Nipro PharmaPackaging France Aumale Plant, GHG emissions have been reduced
by utilizing all-oxyfuel combustion technology for the new glass tubing furnace thatbegan operation in October 2022. All-oxyfuel combustion involves burning a fuel using only
oxygen, which increases the heating efficiency of the furnace. As a result, energy efficiency is
increased, and fuel usage can be reduced. With this glass tubing furnace, the use of city
gas was reduced from 1,080,000 Nm3 (achieved using the conventional combustion method)
to 600,000 Nm3 in a year, reducing GHG emissions by 984 t-CO2 equivalent. The Nipro Groupwill promote further introduction of all-oxyfuel combustion technology to improve production
efficiency and reduce GHG emissions.

Case

3

The Nipro Group companies were certified
as “Great Place to Work”

Nipro Europe Group Companies in Belgium (NEGC) and Nipro Pharma Packaging India(NPH) were certified with the Great Place to Work 2023-2024. This is a certification issued
by international organization Great Place to Work®, which assesses employees’s satisfaction
at the workplace by means of anonymized employee questionnaires. It is a perfect tool for the
management teams of organizations to reflect on how to improve the workplace for theiremployees, which in turn fosters an environment stimulating productivity and performance.
NEGC scored particularly high on fairness as well as its facilities and overall working
environment. At NPH the culture of “Safety First” and the employee well-being initiatives
were highly rated. Both companies were certified as a Great Place to Work two years in a
row and aim to continue making the Nipro Group a better “Great place to work.”

Effect of reducing GHG emissions

Reduced 984 t-CO2(based on the results in fiscal 2024,
conversion to city gas)

The Aumale Plant, Nipro PharmaPackaging France
Certification Party at NPH (the Pune Plant)

Certification Party at NPH (the Meerut Plant)

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management
Foundation

Social Bond
Reporting

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

28
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Environment
Information disclosure based on TCFD
The Nipro Group recognizes that climate change is a significant issue that greatly affects
business continuity. The Nipro Group agrees with the suggestions of the Task Forceon Climate-related Financial Disclosures (TCFD), made in June 2023, and will expand
information disclosure following the framework proposed by TCFD.
GovernanceIn the Nipro Group, the President serves as a supervising officer of climate change issues.
Our CFO was designated as chairman of “the Environmental Committee” by the President
and manages and supervises the initiatives for climate change issues at the Nipro Group.
In the Environmental Committee, the persons in charge of climate change issues in eachbusiness division serve as committee members who identify the impact of climatechange on the Nipro Group and examine the policy initiatives and specific measures.
The measures examined by the committee are put on the agenda of the Board of Directors
through the chairman of the committee and deliberated as a significant management
issue of the Nipro Group.
The Nipro Group makes a quick decision on the management related to climate change
issues by introducing the aforementioned committee system and improves the system to workon the measures.
Strategy
The impact of climate change on the Nipro Group is divided into the following two types: oneis related to the “transfer” caused by political impact generated in the course of societal
change toward carbon neutrality and establishment of new technologies as well as the change
in market needs; the other is related to “physical change” such as frequent abnormal
weather caused by increasing global warming, occurrence of subsequent disasters, andhigher average temperatures. The Nipro Group, a comprehensive medical manufacturer,
analyzes these impacts from the perspective of each business division, identifies risks
and opportunities, and incorporates them into the business strategy. The following page
describes a part of our strategy.
Risk management
The Nipro Group has formulated the “Regulations on Disaster Prevention and Crisis
Management” and “Regulations on Compliance Promotion” to accurately grasp management
risks that could have major impacts on the business—including climate-related risks—and to
make efforts for appropriate corporate management. In addition, if the estimated risk exceeds
a certain threshold, the Board of Directors is engaged to promptly make decisions regarding
risk management.

Index and goals
The Nipro Group decided the volume of greenhouse gas emissions (unit: t-CO 2) as anindex for the evaluation and management of risks related to climate change. Furthermore, topromote the reduction of greenhouse gas emissions, the Nipro Group aims for Net Zero in
Scope 1/2 by 2045. As an interim goal, the Nipro Group aims for a reduction of 37.8% in Scope
1/2 by 2030 compared to 2021. GHG emissions in 2022 were approximately 513,000t-CO2 withthe application of Non-Fossil Certificate, and the reduction rate from the previous year was
3.8%. The interim goal of reducing 4.2% annually was not achieved, thus we increased theamount purchased of Non-Fossil Certificate in 2023. However, due to the start of operation of
new facilities and the increased production, emissions in 2023 were 524,000 t-CO2, which
increased 2.0% from the previous year. We aim to reduce more by purchasing more renewableenergy and Non-Fossil Certificate next year.
Volume of greenhouse gas emissions (t-CO2)(3.8%)

Reduce by

37.8%

+2.0%

by 2030(from 2021)
Reduce by

1.9%

from thereference year
Approx.

Approx.

Approx.

534,000

513,000

524,000

2021*

2022

2023

t-CO2

* Reference year

t-CO2

t-CO2

2030

2045
Net ZeroNIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

29
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Environment
Results of scenario analysis
Risk
Impact on business

Degree ofimpactPeriodMeasures

Increase in carbon price

Increase in the costs of energy and raw materials
at plants and business offices due to introduction
and reinforcement of carbon tax.

Major

Mid-term

Implementing energy-saving measures and promoting renewable energy usage
to reduce GHG emission volume at production bases where a large volume of
GHG is emitted through operations.

Change in customer
behavior due to increasing
environmental awarenessDecrease in sales due to loss of sales opportunities
and decreasing demands. As the demand forenvironmentally friendly products increases, it
is difficult to switch to alternative materials.

Long-term

We are reducing GHG emissions by making existing products smaller and lighterand production processes more efficient. We have simplified packaging while
securing quality and changed the packaging material to low-carbon materials forsome products. We will further develop products using environmentally friendly
materials and use low-carbon materials for product packaging.

Occurrence of disaster due
to abnormal weather

Decrease in supplied quantity due to the damage
caused by disasters to production facilities, logisticalproblems caused by disasters, and stagnating supplyof materials when abnormal weather increasingly
causes the occurrence of disasters.

MajorLong-term

Formulating, maintaining, and managing BCP assuming abnormal weather.
Constructing the production bases and implementing measures for disasters
after considering the system for various disaster risks (having private power
generation facility, stockpiling energy and food, having a sufficient stock of
raw materials).

Category

Opportunity items

Impact on business

Degree ofimpactPeriodMeasures

Efficiency of materials

Reducing indirect expenses
through efficient logistic
processes

Leading to cost reduction by strengthening control of
the amount of materials and logistics processes andopportunities to implement efficient transportationand improvement in quality.

Moderate

Mid-term

Reviewing the logistics route and transport fees in Japan and overseas, placing
logistics bases at appropriate locations, and maintaining the appropriate amountof stock. The appropriate amount of stock contributes to reducing the expenses
for storage and transport and amount of disposal.

Products and services

Increase in supply volume torespond to the demands ofconsumers

Increase in opportunities to provide products that
respond to greater interest and demand for infection
prevention among consumers. This demand has arisen
after the outbreak of new infections or long-term
disease trends associated with climate change.

Great

Long-term

To fulfill the responsibility of supplying products to clinical settings during the
expansion of demand for the related products, establishing a system for quickly
increasing production volume, and supplying products to respond to the globally
expanding demands by determining the level of stock of products that is decided
to be necessarily higher than that for other products.

Products and services

Increase in demand of
products to respond to
greater environmental
awareness

Leading to an increase in the sales of home careproducts, which is motivated by greater demand forhome care products that do not emit GHG associatedwith transport.

Minor

Long-term

Promoting research and development while gathering information on
customers’ demands.

Category

Risk items

Transfer risk
(1.50C scenario)

Physical risk
(40C scenario)

Moderate

Opportunity

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

30
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Human Resources Strategy“Willingness” is the corporate creed of the Nipro Group. Working on all activities with“willingness” is fundamental for employees. We aim to establish an environment wherein
employees from diverse backgrounds can achieve their goals so that we can firmly maintainthe corporate culture of giving opportunities to all personnel with willingness.
Promotion of Health Management
Nipro is promoting health management to realize the management philosophy of “supporting
the health of people around the world and contributing to society.” Health management aims
to improve employees’ health in a company that supports healthcare, enhances productivity,and contributes to society through sustainable growth. To achieve these objectives,
the Health Management Promotion Committee was organized, headed by the executive
in-charge of the Human Resources Division, and various issues were discussed with members
selected from each division. The Committee is taking steps such as holding seminars toenhance employees’ health literacy and introducing health apps regarding particularly
significant issues, such as smoking cessation, mental health, and the activation of workplace
activities. Moreover, we strive to establish a system through which employees can seek healthadvice and improve their daily support by cooperating with industrial health professionals
such as industrial physicians in each region.
Promotion System
President
Department that supervises
health management promotion(Secretariat: Healthmanagement office)Chief Health Officer (Director of
the Human Resources Division)

Health Management
Promotion Committee
Employees, etc.

Cooperation

Cooperation

to introduce and recognize FISH activities
at each business office/plant, etc. Basedon these initiatives, we aim to further
disseminate the FISH! philosophy, facilitatecommunication among employees, andimprove workplace environments.

Nipro Group Mutual Aid Association
The Nipro Group Mutual Aid Association operates for the purpose of mutual aid of members,
improving the culture and health of members, and promoting mutual friendship between
members. Further, the Association contributes to stimulating social interactions between
members, promoting health through various event activities at branches established in eachbusiness office, and implementing nationwide sports events.
As a unique system, the Association provides subsidies for expenses for complete medical
checkups, lifestyle disease prevention screening, gynecological screening, and smoking
cessation outpatient visits; supports members who have taken long-term absence from workfor family care and childcare with benefits; and provides subsidies for expenses for members
who are receiving fertility treatment.
It has a system where members can use sports facilities, childcare, and nursing careservices, among others, at preferential prices. Also, the “Cafeteria Plan” system is adopted
for further assistance with health, childcare, and nursing care. It contributes to maintaining
mental and physical fitness according to the needs of individual employees andsupports the balance between work and family life. Thus, the Association aims to improve
employee satisfaction.

Industrial doctor

Initiatives for enhancing employee engagement
The Nipro Group promotes the FISH! philosophy as action guidelines for working people.
The FISH! philosophy consists of four principles: “Choose Your Attitude,” “Play,” “Be There,”and “Make Their Day.” In the concept, people are inspired to be “willing to work” and create
a comfortable and vibrant workplace environment by involving people around them andacknowledging their ideas. The Nipro Group has also been promoting the use of the
FISH! philosophy company-wide and holds an in-house event, “FISH Festival/ FISH Award,”

Completion of construction of the new head office of Nipro Pharma Corporation
In the new building
completed in March 2023,
we have allocated spaces
to further activate thecommunication among
employees, such as aco-creation space andrelaxation room with the concept of “encountering, connecting, and creating,”
being aware of the FISH! philosophy.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management
Foundation

Social Bond
Reporting

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

31
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Human Resources Strategy

New
graduate

Class AClass BClass C

GeneralClass HClass M

Supervisor

Manager

Test

Test

Careertraining

Self-development

Class F
Assistantsupervisor
Test

Training
beforejoining thecompany
Training
for new
employees
Follow-up training
Step-up training

Training for upgrading
Training
for new
assistantsupervisors

Training common to the
management staff

Ability
Training by
development
specialty
training(Implemented
by eachbusiness
division)

Stratified education for young employees and employees promoted to management positions
The Nipro Group focuses on expanding training for young employees. In addition to theexisting training, we newly introduced step-up training for second-year new employees
and incorporated many programs that help them deepen communication with peers whojoined the company in the same year; this not only enhances knowledge but also leads toincreased motivation and decreased turnover rate. We also provide stratified education to
management positions in the first year of appointment or at an early stage, so that they canunderstand their work mission and increase engagement with the company. Current fiscal
year, to improve engagement and the work environment with high psychologicalsafety, we positioned “reinforcement of management” as a priority issue and introduced thereinforcement of training for managers and 360-degree feedback. We will continuously
strive to ensure that all managers face multifaceted and more objective feedback, and draw

Education and Training System

Company-wide common training (group common training)

Cultivating language skills and supporting self-development learning
Acquiring language abilities other than Japanese is essential to face the global market of 8billion people in the borderless era. Therefore, we provide English education programs to
selected employees and create opportunities to enhance their language skills. In these
programs, we also work on fostering a global mindset by providing group lessons of English
conversation in which trainees connect with other trainees around the world in real time
as well as holding training events that deepen the understanding of different cultures.
Additionally, employees can freely apply for self-development learning on a topic that meets
their needs in the a la carte style. In addition to the language education described above,
we hold DX-related courses, computer skill courses, and various other skill development
courses throughout the year. Therefore, employees with motivation can improve their own skill
level by voluntarily attending the courses, and the company will cover the training fees for
those who have completed such courses.

up and implement action plans for the future. Thus, we aim to create an organization where all
employees can work energetically.

Training common to eachhierarchical group

Appointment of positions with transparency and promotion of personnel exchanges
within the GroupThe Nipro Group is working on personnel promotion free from the order of seniority under
the company creed “Willingness” to achieve Group sales of 1 trillion yen for the fiscal
year ending March 2031. By renovating the personnel system and clarifying the criteria
for promotion, more transparent personnel treatment has been implemented, improving
the willingness of all employees. We will further expand the internal job-posting systemin the future to enable employees to come forward for personnel transfer in anticipationof career development within the Nipro Group. Essentially, we aim to remove the barriers
to personnel transfer and allocate the right person to the right job, beyond the bordersof companies by unifying the personnel system within the Group.

Training
for new
supervisors

Training for
new managers
Practical training for
managers
Training forsenior managers
360-degree feedback
and follow up training

Career design training for women
Female leader
development training
Senior career training
Selective English training
Optional skill-up training
Financial training
Nursing training
Basic training andlearning for MR
Training for new
employees byspecialty

Advance training and learning for MR
Training for employees by specialty

Establishment of correspondence education courses

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

32
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Human Resources Strategy
Promotion of active participation of women
In the Nipro Group, we aim to provide a comfortable work environment for all employees
regardless of gender. Particularly, we are making an energetic effort to promote women’s
active participation and support the development of the next generation. Nipro has set
specific goals of increasing the proportion of women in management positions to 10% or moreby 2027. Moreover, we set the proportion of male employees taking childcare leave to 30% or
more; since we have achieved this goal, we are now aiming at 45% or higher as the next step.
To do so, we are taking various measures for female employees selected as candidates for
future managers and their superiors, such as providing female leader-development training tofoster a positive mindset of aiming to be a leader, holding roundtable discussions with female
managers, and implementing career-design training for women to develop a career in which
they can work vibrantly and energetically without frustration.
PI CK UP

Support for childcare employees
The Nipro Group provides careful support to employees who have returned to work afterchildcare leave. We support the balance between work and childcare by allowing shortworking hours until children reach the 6th grade of elementary school, which prevents
turnover. In addition, in-house nursery centers have been established in Akita, Mie, and Shiga
prefectures to contribute to the early reinstatement of employees. We also encourage male
employees to take childcare leave, and the number of male employees who have taken leavehas dramatically increased over the last few years. In addition, we have established maternity
leave and nursing leave for male employees, apart from childcare leave. Therefore, this study
focused on childcare support.

Odate City, Akita(Nipro Odate Plant,
Nipro Pharma Odate Plant)

Matsusaka City, Mie(Ise Plant, Nipro Pharma
Corporation)

Kusatsu City, Shiga(NIPRO Life Science Site)

Promotion of active participation of senior human resources
A decrease in the working population due to a declining birth rate and an aging population
is an unavoidable issue in Japan. Nipro extended the mandatory retirement age to 65 on
October 1, 2022, to secure labor and enhance senior engagement. We prevent early
retirement by guaranteeing the employment of senior employees, extending the mandatory
retirement age, and introducing senior career training. Thus, we foster positive careerself-reliance, support the handing down of knowledge and technology to younger generations,and contribute to the Nipro Group’s development.
Support for caregivers
The fact that employees of the working generation become caregivers is a problem thatcannot be avoided because of nuclear families. The Nipro Group has a system in which theperiod of nursing care leave is significantly longer than that stipulated by law, and shortworking hours and telework are available. These efforts have contributed to the preventionof nursing care turnover.
Flexible work style—Flex system, telework system, staggered working hours system
The flex system has been introduced in some job types to realize a work style that has flexible
working hours and contributes to maintaining mental and physical health. In addition, we haveindroduced a telework system, a work style not restricted to a space, using the COVID-19
pandemic as an opportunity. Thus, we attempted to improve labor productivity while
improving mental care. However, since we think that innovation will be generated throughface-to-face communication, we set a maximum limit for the frequency of teleworking andrequired employees to work at the office two days a week. Furthermore, we introduced
a staggered working hours system for up to 60 minutes which contributed to improving
work-life balance.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

33
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Human Resources Strategy
Data

PI CK UP

Various systems to realize work-life balance• Maternity leave• Long-term absence fromwork for childcare• Childbirth leave system
for male employees• Long-term absence fromwork for childcare formale employees• Short working hours
system for childcare• Staggered working hours
system• Menstrual leave• Hospital visit leave during
pregnancy• Maternity health checkup
leave• Morning sickness leave• Birth support leave• Child nursing leave• Long-term absence fromwork for nursing care
• Nursing care leave system

Fiscal 2022 Fiscal 2023 Fiscal 2024

• Short working hours
system for nursing care
• Medical checkup leave• Job Return Program forresigned employees• Telework system• Flex system• Opening of nursery
centers in the businessoffices (3 centers in theGroup)[Related to the Mutual Aid Association]
Various support systems: subsidies for fertility treatment, benefits for reinstatement fromchildcare leave, and subsidies for gynecological screening
Maternity celebration system, childbirth celebration system, breast cancer self-checksupport system, etc.

Promoting Health Management
Employee smoking rate (%)
Improve Employee Engagement
Employee work engagement*3
Diversity and inclusion

*1

22.6

21.5

22.5

15.0

*1

51.1

51.1

48.3

55.0

*1
*2
*1
*2
*1
*2
*1
*2
*1
*2

26.3
33.2
4.3
5.8
100
100
16.7
12.8
97
249

27.2
32.2
4.7
6.5
100
100
28.2
27.3
105
280

28.3
34.2
4.8
7.5
100
100
36.6
39.8
131
313

—
—
10.0
10.0
100
100
30.0
30.0
—
—

Employees with short working hours
for nursing care

*1
*2

3
10

2
10

0
7

—
—

Employees taking long-term absences fromwork for nursing care

*1

6

5

1

—

*1
*2
*1
*2

0.49
0.72
0.010
0.009

0.35
1.01
0.015
0.014

0.82
1.50
0.028
0.025

0.16
—
0.005
—

Percentage of female employees (%)
Percentage of female managers (%)
Percentage of female employees taking
long-term absence from work for childcare (%)*4
Percentage of male employees taking
long-term absence from work for childcare (%)*5
Employees with short working hours
for childcare
Support to Caregivers

Employees’ health and safety
Frequency of work accidents
Work accident severity rate

Job Return Program
To make the most of the know-how cultivated in Nipro, we introduced a system that allows
those who resigned from the company due to unavoidable reasons such as transfer of the
spouse, childcare, or nursing care to re-join the company after the circumstance is resolved.
Employees can use this system to dedicate themselves to issues at home with peace ofmind. After the issues are resolved, they can re-join the company, which contributes toharmonization between work and home life.
Safety and health
The Nipro Group aims to establish a safe and hygienic working environment by complying withlaws and regulations related to health and safety and in-house regulations, setting a basic
policy to eliminate industrial accidents, prevent diseases, maintain and promote health, andensure safety and health management.

Goals*1 Scope: Nipro Corporation*2 Scope: Nipro Group (Domestic Companies)*3 Employee work engagement represents a positive psychological state toward an individual’s work and is indicatedby a deviation value.
Please note that changes have occurred in the scope of the fiscal 2024 survey.
*4 (Number of female employees who took childcare leave during the relevant fiscal year / Number of female
employees who gave birth during the relevant fiscal year) x 100*5 (Number of male employees who took childcare leave out of number of male employees whose spouses gavebirth during the relevant fiscal year / number of male employees whose spouses gave birth during the relevant
fiscal year)×100

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

34
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Research and Development Activities
Contributing to Innovation in Medical Care through Original Technologies and Ideas
The Nipro Group has seven research and development sites, centered on the Research andDevelopment Institute and Pharmaceutical Research Laboratories in Japan and the U.S.
We continually address the needs and issues of medical professionals and patients as
we work to develop and provide high-value-added products.

01

Research andDevelopment Institute

Number of employees

267
Research themes• Cellular and regenerative medicine
products• Orthopedic surgery-related products• Dialysis-related and general
medical devices• Circulatory organ- andintervention-related products• Artificial organs• Test and diagnosis-related products• High-performance medical
containers• Medical glass products• Software as a Medical Device

Status of industry-academia
collaboration

Implementation of research aimed at thejoint development and early realization of
new products, in collaboration with
universities and research institutions
throughout the world.

04 Sapporo-Shi, Hokkaido
01 02 03
02 Kasukabe-Shi, Saitama

Kusatsu-Shi, Shiga

05 Seto-Shi, Aichi

06

07

California, USA

Massachusetts, USA

AVANTEC VASCULARCORPORATION

02 Pharmaceutical
Research Laboratories

06

Number of employees

Number of employees

159

41

Research themes

Research themes• Injectable drugs• Oral drugs• External-use drugs• Biosimilar drugs• High-performance medical drugs

Status of industry-academia
collaboration

Research activities concerning API,
continuous manufacturing technology,
bioequivalence studies and new
application of broad-spectrum
disinfectants collaborate with
universities and/or research institutions.

Production
03
Technology Center
Number of employees

69
Research themes

The establishment of new production
technology and the design anddevelopment of equipment toincrease production, in order to enhance
productivity.

Goodman Medical
Innovation Center• Vascular retrieval system• Neurovascular/peripheral coils• Peripheral Atherectomy• Specialty coronary/peripheral DES• Venous Thrombectomy

04 Regenerative
Medicine R&D Center05

Number of employees

Number of employees

30

66

07

Research themes

Research themes

Number of employees

We develop manufacturing equipment
and consumables to realize
regenerative treatments using
autologous bone marrow cells forspinal cord injury and other disorders,
as well as to manufacture newinvestigational drugs.

Status of industry-academia
collaboration

We signed a license agreement with
Sapporo Medical University regarding
joint research on drugs for spinal cord
injury and other diseases, as well as
regenerative medicine.

• Catheters and accessories for
cardiac and circulatory organ
inspection and therapy• Catheters and stents for cerebral
blood vessel therapy• Vascular access catheters

Status of industry-academia
collaboration• Implementation of research incollaboration with Hiroshima University

Infraredx, Inc.

71
Research themes• Novel coronary and peripheral intravascularimaging technologies—NIRS, IVUS and among
others• AI-based detection algorithms• Plaque characterization algorithms

Status of industry-academia collaboration• University of Tokyo• Imperial College London• Queen Mary University London• UCLA Medical Center, Los Angeles, CA• German Heart Center Munich and Technical
University Munich, Munich, Germany• Stanford Health Center, Palo Alto, CA• Mount Sinai School of Medicine, New York, NY

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management Foundation

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

35
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Research and Development Activities
The activities for research and development (R&D) of medical devices and drugs aremainly conducted by our company at NIPRO Life Science Site in Kusatsu City, Shiga Prefecture.
For overall R&D, we have a management policy to increase capital efficiency of the entire
business by establishing internal standards based on the future cash flows to limit R&D to
those that drive growth and profitability.
In the medical-related business, by effectively utilizing management resources and ourunique technology, we work on investing safer and more valuable products from the user
perspective, such as next-generation safety blood sampling needles. As well as improving
the quality of life (QOL) of healthcare professionals and creating and enhancing new medical
products, we will focus on conducting profitable research and development.
In the pharmaceutical-related business, we are developing high-quality generic drugs,
targeting brand-name drugs in various disease areas and dosage forms to meet the needs for
drug costs reduction and to improve the quality of medical care. We are also focusing on thedevelopment of value-added products, such as orally disintegrating tablets, which are easy
for patients to consume, and kit preparations that are easy to handle in medical settings.
The total R&D cost for the current consolidated fiscal year is 20,846 million yen, and the
R&D activities for each segment are as follows:

1. Medical-related Business
The following R&D activities are conducted mainly at the Research and Development
Institute and Enzyme Center. The R&D cost for Medical-related Business is 11,260
million yen.

① General-purpose Medical Devices
We developed the Nipro PICC Catheter Kit f (fortetto) using a guide stylet to achieve easy-toinsert and safe high-pressure injection of contrast agent for Central Venous (CV) catheter
insertion from a distant (peripheral) site from the center of the body (heart), such as the upperarm. Additionally, we developed a urine bag with a closed-type measuring bottle with a shapesuitable for a low-floor-type urine bag, and the volume was increased from 200 to 350 mL.
② Intervention-related Products
We marketed E-Dive using balloon catheter technology for circulatory organs that delivers
a balloon through the channel of the endoscope with a balloon for the treatment ofgastrointestinal stenosis. We developed a wire-guide-type balloon catheter that is passed
through the stenosis site in combination with a guidewire in the event of severe stenosis of thelower gastrointestinal tract. We also developed a catheter for removing foreign substancesthat easily collects foreign substances with the basket at the tip in the event of generation offoreign substances due to rupture of a guidewire at the time of treatment of peripheral bloodvessels of the lower limb or shunt.
We also developed a super-high pressure-resistant balloon, VASOPEN, to expand hardlesions due to calcification of peripheral or shunt blood vessels or thickened tissue with apressure of 30 atm or more.
③ Artificial Organ-related Products
We developed an arterial filter-integrated oxygenator with good operability and coating toprevent platelet adhesion. We also developed a transparent packaging material for dialyzers
with better visibility and openability than previous aluminum packaging materials.
④ Diagnostics, Test Agents, and Enzyme Products
We developed a test kit that enables testing of the COVID-19 antigen and influenza A/B at thesame time, and also a measuring reagent with which organic solvent examination, an essential
item in special health examinations, is easily conducted. Furthermore, we developed three
new enzymes that could be used as reagents for hippuric acid and total hippuric acid.
⑤ Functional Pharmaceutical Packaging Containers
We developed a non-gas endospray with improved shaft rigidity and bending workability of
the flexible part, which enables adjustment of the tip angle of the spray during laparoscopic
surgery for KM Biologics.
⑥ Surgical Devices
We developed RENERVE SLIT, which is an additional variety of nerve conduit, RENERVE, andused for partial nerve injury.
⑦ Endoscope-related Products
We developed a bent sheath, thin-diameter endoscope, brush, and forceps for transsacral canalplasty (TSCP), a minimally invasive treatment using an endoscope in the plastic surgery area.
⑧ Cell Therapy Products
We developed a collection tube for Oligozoospermia “SFNT-P” that enables the collection of
sperm of patients with low sperm counts by centrifugal concentration. We also developed a“waste liquid bag” to collect waste liquid generated during cell production for the Nikon
CeLL innovation.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management Foundation

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

36
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Research and Development Activities⑨ Regenerative Medicine Division
The manufacturing and marketing of STEMIRAC, a regenerative medicine product, began in2019 under conditional and time-limited approval.
This STEMIRAC is subject to approval application based on investigation of comparing
the results of use based on this condition and effectiveness and safety verification within
the approval period (7 years).
We expect to receive this approval by December of 2025 as originally planned.
In July 2023, we initiated a corporate clinical trial for chronic spinal cord injury.
By expanding the indication of STEMIRAC to cover not only subacute but also chronic
spinal cord injury, we are aiming for early commercialization so that STEMIRAC can bedelivered to those in need of treatment.
⑩ Division of Medical Training
iMEP (medical training division) is celebrating the 10th anniversary next fiscal year and is now
preparing for a new training program. iMEP in Belgium, established six years ago, newly
created an X-ray training room, expanded the training plan of PTA/PCI, performed live
broadcasting to the African area, and provided AVF&AVG training. Thus, they have contributed
to increasing the recognition of Nipro brands through high-quality medical training.

2. Pharmaceutical-related Business
The following R&D activities are mainly conducted at the Pharmaceutical ResearchLaboratories. The R&D cost for Medical-related Business is 9,585 million yen.

① Injectable Drugs
In addition to the usual vial and bag drug products, we are actively developing kit preparations
to improve convenience in medical settings. We are the only generic company to havedeveloped and already marketed double-chambered pre-fillable syringes for leuprorelin
acetate for the treatment of prostate cancer and premenopausal breast cancer. We focusedon products that are difficult to develop, such as extended-release injectable drugs.
During this period, we launched a generic drug consisting of one lyophilized vial preparationand obtained marketing approval for three liquid vial preparations containing two ingredientand one prefilled syringe drug product.
② Oral Drugs
We are currently developing exceedingly difficult extended-release drug products in addition
to common oral drugs (e.g., tablets and granules). Additionally, we provided products withingredient names printed on tablets and carefully designed packaging specifications,such as individual packages and aluminum pillow packages, to improve convenience in
medical settings.
This fiscal year, we launched three generic drugs with one ingredient and obtained
marketing approval for five products with three ingredients.
③ External Use Products
Currently, we are developing high-quality generic drugs for transdermal patches and ointments,
which make up most of our own technologies. As a product for measures against the COVID-19,
we are also developing disinfectants for the purpose of environmental hygiene.
④ Biosimilars
Although the market for biopharmaceuticals is rapidly expanding in Japan, biopharmaceuticals
are expensive. Therefore, the need for lower-priced biosimilars to reduce medical expenses isincreasing. Considering this, we are developing products in several styles, including joint andindependent in-house developments.
We have launched “Pegfilgrastim BS Subcutaneous Injection 3.6mg NIPRO” in this period.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management
Foundation

Social Bond
Reporting

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

37
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board MembersIntellectual Property Investment
Introduction
We regard intellectual properties and intangible assets as important management resources
and work on “intellectual property management” every day through the practice of thisintellectual property philosophy: respecting the intellectual properties of others, not releasing
products that violate the intellectual properties of others, and making efforts to develop
products based on original intellectual properties.
The Business Planning, Research and Development, and Intellectual Property divisions,employing the spirit of “ONE NIPRO”, are involved in all business processes, from management
and business planning and research and development to production and sales activities.
They aim to earn 1 trillion yen in consolidated sales for March 2031 by focusing on “the user’s
viewpoint/patient’s viewpoint” and “the contribution to management (business)”, while
integrating each department’s strategy.

Management/
businessplanning

Outline of intellectual property audit system (linked to development phase)
R&D expenses
Businessplanning(start)Business Planning Division/
Research and Development
Division/ Intellectual
Property Division

ONE NIPRO* The intellectual property audit system is a voluntary system that establishes multiple checkpoints in theprocesses of business planning and research and development; the three divisions (Business Planning,
Research and Development, and Intellectual Property) check their own intellectual property clearance.
• If an issue is identified during an audit (at a checkpoint), the project cannot proceed, and the issue has to beresolved through changes (the project can proceed only if there are no issues or if the issue can be resolved).
• If this issue cannot be resolved, the project will be discontinued. In this operation, an intellectual property audit
contributes to shortening the development period and controlling costs.

At present, in addition to the major domestic group companies, the intellectual property
audit system has been introduced to overseas subsidiaries while considering the situationsof the countries and companies. The Group is working together to “practice intellectual
property management”, focusing on “the user’s viewpoint/patient’s viewpoint” and “thecontribution to management (business)”.

User’s viewpoint/patient’s viewpointand contribution to
management(business)

Production andsales activities

In intellectual property management, a dedicated system assigns the Intellectual Property
Division staff members for each planning and development project. The Business Planning,
Research and Development, and Intellectual Property divisions work together to plan andimplement strategies for the discovery of inventions, the application, acquisition, and exerciseof rights, the invalidation of rights of other companies, and the protection of know-how frombusiness planning to commercialization to post-marketing activities.
The intellectual property audit system* has been introduced (as an internal system) toensure our intellectual property philosophy (respect for the intellectual properties of others).

Research anddevelopment

Intellectual
propertyaudit

1

PassedR&D expenses

Development
phase

1

Intellectual
propertyaudit

nPassedDiscontinuation of development

Development
phase

n

Manufacturing

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

38
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board MembersIntellectual Property Investment
Brand Protection Activities: Protection of Trademarks and Domain Names
To ensure reassurance and safety to customers around the world, we globally registered many
trademarks, including “NIPRO” (filing applications/licensing in more than 100 countries andregions in the world).
We also globally monitor the registration and use of confusing trademarks and domainnames including “NIPRO” by third parties. Additionally, we take legal measures such assuspending the use of trademarks and domain names employed for illegal acts to protect
customers’ and brands’ confidence and trust.

Protection of trademark
and domain nameEncouragement of Creative Activities such as Inventions:
Proposal of Inventions and Reward Systems
To encourage creative activities, such as inventions that can act as a bridge to the next
generation of management (business), our employee invention system has the following
characteristics:• In addition to the extraction (discovery) of intellectual property and intangible assets,
including inventions, employees can actively conduct creative activities and propose
results to the company.
• If an employee files an application for an invention and the rights are acquired (in thecase of knowhow, certification of know-how) and the degree of the invention’s contribution
to management (business) is high, a monetary incentive will be paid to the inventor, etc.,
in accordance with the integrated rules of the Group.
Employee Invention System• Extraction of intellectual properties
and intangible assets (discovery)• Proactive creative activities

Asia
EuropeAfricaThe united States

Employees

Increasing motivation

Human Capital Development: Training on Intellectual Properties
We provide intellectual property training to the Business Planning, Research andDevelopment, and Production divisions, according to the level required by each occupational
function to ensure that each employee is motivated to participate in “intellectual property
management” based on our intellectual property philosophy.

Payment of reward to inventors,
etc., according to the degree ofcontribution of inventions, etc., tomanagement (business)

the Nipro Group

Energizing R&D

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management Foundation

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

39
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Status of Corporate Governance1. Corporate Governance Overview(1) Corporate Governance System and Reasons for Adoption
In our company’s corporate governance system, we have established the General Meetingof Shareholders and Directors, as stipulated in the Companies Act, as well as the Board of
Directors, auditors, Board of Auditors, and accounting auditors. We have improved the internal
committee system, including both the Compliance Committee and Disciplinary Committee,
cooperating closely with professional external advisory bodies and corporate lawyers. Therefore,
we have built a system to effectively monitor and supervise the execution of proper andefficient operations for the overall management of the company.
(2) Internal Control Systems
We strive to build an internal control foundation for the entire group based on the business
unit system. At the Board of Directors meeting held at least once a month and the groupmanagement meeting concurrently held on the same day, representatives of major
companies in the group, in addition to our directors and auditors, are present to report on
the progress of business activities, decide on key operating matters, and deliberate on
pending matters. Additionally, we have established the NIPRO Code of Practice andthoroughly informed the company, aiming to raise awareness of compliance with laws,
regulations, and corporate ethics among executives and employees. We strive to disseminate
and promote awareness-raising activities, such as preparing various kinds of manuals forcompliance with laws and regulations, including those on our portal site as well as improving
compliance training materials, holding regular and occasional compliance workshops, anddistributing monthly compliance newsletters to executives and employees. These internal
control systems are operated for executives and employees of each company in the Nipro
Group based on a uniform management system through close mutual cooperation. We strive
to collect risk information by establishing a whistle-blowing system and take prompt andeffective measures as one of the systems to complement the effectiveness of the internal
control systems.

(3) Compliance and Risk Management System
As an initiative to prevent the occurrence of risks that may have a significant impact onmanagement, we have been promoting efforts to investigate the facts, determine the causesof such risks, and prevent recurrence when the risks become apparent, in addition toestablishing the aforementioned whistleblowing system. We also have regulations for promoting
compliance to identify potential risks and avoid the occurrence of unexpected risks.
These regulations stipulate detailed operational rules on the system and maintenancefor the appropriate and effective implementation of prevention, early detection, andprevention of the recurrence of compliance risks. We have established a Compliance
Committee with its secretariat in the Legal Department to conduct operations across allcompanies in the Nipro Group. We have specified the procedure for cases where illegal
activities occur to ensure flexible actions against compliance risks. The Compliance
Committee and secretariat work in cooperation, and a series of steps, from factual
investigation to recurrence prevention, are implemented as per the procedure. For example, if
an illegal activity occurs, the secretariat (Legal Department) will closely investigate the facts
and, based on the results, consider the form and maliciousness of the illegal activity, remorse,
willingness to make sincere efforts to prevent a repeat of the offenses, and various
other circumstances. Then, deliberation is conducted by the Disciplinary Committee in
an independent position composed of multiple senior managers or external persons,based on the regulations on disciplinary measures, if necessary.
In this system, the president will finally determine the details of the disciplinary action
based on the results of the consultation. We strive to ensure the soundness of managementwith an awareness of thorough compliance and principles of reward and punishment byimplementing these proper operating procedures. We produced the NIPRO Disaster Prevention
Crisis Management Handbook and have clearly informed all employees in the group throughthe intranet. In addition to large-scale earthquakes, such as the Nankai Trough Earthquake,
we have formulated plans for each site on a company-wide basis and in the event of disasters,
assuming typhoons, floods, and the spread of new types of influenza, reviewed and updated
them as appropriate, and ensured that employees are thoroughly informed.
Furthermore, we have established a Compliance Section within the Legal Department tostrengthen the nationwide deployment of compliance training, enhance the risk management
system, and ensure awareness of compliance among employees.
To further strengthen the compliance system, we strive to gain the trust of employees andfurther strengthen the compliance system by establishing a whistleblowing contact desk for
employees in an external lawyer’s office in addition to one on the intranet.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

40
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Status of Corporate Governance(4) Basic Structure of Corporate Governance and Risk Management(as of July 1, 2024)

General meeting of the shareholders(Appointment and dismissal)(Consultation)

Optional Committee(Report)(Cooperation)(Directors)
Board of Directors(Selection, appointment,
supervision)

Group Management
Meeting
President &Representative
Director
Execution of operations

Executive Director
Executive Officer(Instructions)(Instructions)(Reporting)Accounting Auditor(Accounting
audit)(Audit)(Reporting)

Audit Office(Internal audit)(Cooperation)(Audit)Group companies(Reporting)(Cooperation)(Reporting)Business divisions

Employees(Auditor)
Board of Auditors(Discussion,
reporting)(Instructions)(Instructions,supervision)(Audit)(Cooperation)(Education,
training)

Governance Control
Headquarters(Whistleblowing) Compliance Committee(Cooperation)

Third parties, suchas lawyers andaccountants

2. Internal and Statutory Auditing(1) Internal Auditing
We have established the Audit Office and the Overseas Audit Office as the Internal Audit
Division and continue to conduct audits of accounting, operations, etc., required in thecurrent corporate governance system. This is achieved by working in close cooperation
with accounting auditors, auditors, and outside directors—in accordance with Internal
Audit Regulations.
(2) Statutory Auditing
Each auditor attends an important meeting—such as that of the Board of Directors—in
accordance with the audit policy and division of operations (as established by the Board
of Auditors). The auditors also receive reports on the status of the execution of operations
from the directors, employees, etc., and are able to request an explanation as needed,view important documents, and conduct site investigations to establish the status of theoperations and assets at major business offices. Thus, auditors conduct audit operations
and hold meetings with the Board of Auditors periodically—or as needed—for the mutual
exchange of opinions and discussions.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management
Foundation

Social Bond
Reporting

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

41
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Status of Corporate Governance3. Outside Directors and Outside Audit & Supervisory Board Members

4. Accounting Audits(1) Outside Directors and Outside Audit & Supervisory Board Members
Our company has six outside directors and two outside auditors. They are designatedindependent officers and were notified by the Tokyo Stock Exchange.

Name of Accounting Auditor: Kainan Audit Corporation(2) Policy and Criteria for Independence from the Filing Company in the Election of Outside
Directors and Outside Audit & Supervisory Board Members
We have separately established criteria for judging the independence of outside directors andoutside auditors via the Corporate Governance Guidelines, as based upon the standards set
forth in the Financial Instruments and Exchange Act. If the actors do not fall under any ofthese criteria, they are deemed independent of the company and are unlikely to have aconflict of interest with general shareholders.

Support Staff for Audits: Certified public accountants: 17(3) Approach to the Election of Outside Directors and Outside Audit & Supervisory Board
Members
The supervision, audit functions, and roles required in the current corporate governancesystem are sufficiently guaranteed in close cooperation with internal directors, full-time
auditors, staff of the Audit Office, personnel of the management department of the head
office, and so on, as necessary.

Internal Directors

¥312

¥ 229

Internal Audit & Supervisory
Board Members¥¥

Outside Directors, Outside
Audit & Supervisory Board
Members¥ 52(4) Mutual Collaboration between Outside Audits and Internal, Statutory and Accounting
Audits, and the Relationship between Internal Control Divisions
Outside directors attend meetings of the Board of Directors (among others) and draw upon awide range of insights and management experiences to supervise the management of ourcompany from an external and independent standpoint. Outside auditors attend important
meetings, such as those with the Board of Directors, in accordance with the audit policy andthe division of operations established by the Board of Auditors. They also perform
audit operations by receiving reports through full-time auditors or directly from directors,
employees, etc., and by viewing important documents and materials. They exchange opinions
and have objective discussions from an independent standpoint on the Board of Auditors, held
periodically or as needed. In conducting audits, they cooperate closely with the staff of the
Audit Office, full-time auditors, auditors of subsidiaries, and accounting auditors to ensuresmooth operational performance.

Names of Certified Public Accountants conducting the Audit:
Miho Ishihara, Hiroshi Kobayashi, and Kiminori Funaki

Remuneration Paid to Directors and Audit & Supervisory Board Members
Millions of yen
Total amount of
remuneration

9

Total amount of remuneration
Non-monetary
Basic
Bonus
compensation,
remuneration
etc
¥ 83

—

12

9

—

—

1

¥ 52

—

—

10

Thousands of U.S. dollars
Total amount of
remuneration

Number of
eligible
corporate
officers

Total amount of remuneration
Non-monetary
Basic
Bonus
compensation,
remuneration
etc

Internal Directors$ 2,061$ 1,512Internal Audit & Supervisory
Board Members

$

59

$

Outside Directors, Outside
Audit & Supervisory Board
Members

$

343

$

$

Number of
eligible
corporate
officers

548

—

12

59

—

—

1

343

—

—

10

* The basic remuneration for directors includes 26 million yen of provision for directors' retirement benefits and 25
million yen of remuneration received as directors of Nipro Corporation's subsidiaries.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

42
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Status of Corporate Governance
5. Dialogue with shareholders
Our policy for dialogues with shareholders is as follows:• We think dialogues with shareholders will provide us with a great opportunity to becomeaware of potential issues that our management does not recognize.
• We will make efforts to disclose highly transparent and fair information to promote dialogues
with shareholders.
• In the dialogues, we will reflect the insights obtained regarding management through theboard of director meetings held eight times a year, execute them, and disclose information.
• We will consider the setting of interviews with outside directors and auditors to provide
opportunities for constructive dialogues with shareholders.
Results of dialogues in the fisical year ended March 31, 2024
The following shows the results of the above dialogues with shareholders in fiscal 2024, basedon the policy for constructive dialogues with shareholders.

① Main responders
CFO, General Manager of the Project Management Department, Corporate Planning
Headquarter, General Manager of General Affairs/Human Resources Headquarters,
Deputy General Manager of Governance Supervision Division, Public Relations Office.
② Overview of shareholders that have been responded toCountries: Japan 76%, Overseas 24%
Operation method: Both passive and active
Investment method: Mainly value
Responsible areas: Analysts, fund managers, persons in charge of ESG,
individual investors, etc.
③ Number of dialogues
Individual meeting about IR

109

Participated in by the CFO

20Sell side

20

Buy side89

Individual meeting about ESG

2

Individual meetings with individual investors

19

In addition to the above, meetings about shareholder benefits

27④ Main themes of dialogues and matters that shareholders were interested in• Operation related –––––––– Control of overseas loss-making companies• Management strategies — Setting of a nomination committee, setting of the system for evaluationof directors, disclosure of succession planning, disclosure of theresults of effectiveness evaluation of the Board of Directors andcorrection plan, governance enforcement measures associated withthe change of the internal system, dialogues with outside directors andauditors, and change in the term of directors• Business strategies ——— Standards for reviewing the business portfolio, disclosure of quality
control status, and disclosure of corporate strategies for differentiationfrom other companies in the same industry and focus areas• Financial strategies ——— Disclosure of the future policy for cross-shareholdings and basic
policy for fundraising• ESG/sustainability ——— Disclosure of the initiatives for human capital, disclosure of initiatives
for improving the skills of directors, and declaration of human rights
due diligence and compliance (eradication of bribery and breach oftrust, general compliance, etc.)⑤ The feedback status of shareholders’ opinions and concerns shown during the
dialogues with the management or the Board of Directors
We report the IR activities of the relevant business year eight times a year at the Board of
Directors meetings, wherein the opinions and expectations of shareholders are introduced.
⑥ Matters adopted based on dialogues and subsequent feedback• We have discussed “the change in the term of directors” in the company, and have madean improvement by changing the term from 2 years to 1 year.
• We appointed three senior managing directors in July 2023, thus changing the internal
system and strengthening governance.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

43
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Status of Corporate Governance
6. Skill Matrix
Knowledge, experience, abilities, etc., possessed by the directors and auditors of the Company
Name

Position1

Yoshihiko Sano

Director

2

Kiyotaka Yoshioka

Director

3

Tsuyoshi Yamazaki

Director

4

Takehito Yogo

Director

5

Toshiaki Masuda

Director

6

Kyoetsu Kobayashi

Director

7

Kimihito Minoura

Director

8

Kazuhiko Sano

Director

9

Kenichi Nishida

Director

10

Yasushi Oyama

Director

11

Hideto Nakamura

Director

12

Toyoshi Yoshida

Director

13

Yoshiko Tanaka

Outside Director

14

Yoshiko Shimamori

Outside Director

15

Toshiaki Hattori

Outside Director

16

Toshikazu Yoshimori

Outside Director (New)17

Yasuhiko Imaizumi

Outside Director (New)18

Yuka Kushida

Outside Director (New)19

Takayuki Nomiya

Auditor20

Shigeru Yanagase

Outside Auditor

21

Yoshitaka Akikuni

Outside Auditor

Corporate
Management

ESG(Sustainability)

Production/quality

R&D/Technology

Sales/marketing

GlobalDX/IT/Digital

Financial
Accounting

Legal, Ethical,
Crisis-Management* Although the three areas of knowledge, experience, and abilities of the directors and corporate auditors are listed, they do not represent all of the knowledge, experience, and abilities possessed by the directors and corporate auditors.
* indicates areas in which directors and corporate auditors have in-depth knowledge, experience, and abilities; whereas indicates areas in which directors and corporate auditors have especially deep knowledge, experience,
and abilities.
The Company’s main business is the manufacture and sale of medical devices, pharmaceuticals, glass products, etc., and the Company aims to proactively expand its business in markets around the world. Therefore, the Company
needs a management team that is both appropriately sized to accommodate its expanding business scale and diverse in terms of gender, internationality, work experience, age, and other factors. The Company recognizes that thesustainable growth of the Company and the enhancement of its corporate value can be achieved when these management members are in charge of business execution (directors) and have the roles and responsibilities to promote thebusinesses under their control. Therefore, the Board of Directors determines whether a person is qualified to serve as a director or auditor of the Company based on her or his knowledge, experience, and abilities in management,
financial accounting, legal affairs, research and development, and human resources development. In addition, independent outside directors shall include those who have corporate management experience at other companies and arecapable of providing accurate proposals and advice to management from a broad perspective.
* The skills, careers, and expertise required for the directors and auditors will be reviewed in response to changes in the business environment and management policies.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management
Foundation

Social Bond
Reporting

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

44
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Outside Directors’ Messages
Expecting flexible response
to environmental changes

Expecting improvement offinancial indicators led by the
Board of Directors

Yoshiko Tanaka

Yoshiko Shimamori

Toshiaki Hattori

Head of Outside Directors

Outside Director

Outside Director

For Nipro to be an essential
presence in global healthcare

It has been 10 years since I was appointed as an outside
director of Nipro. Today, the Board of Directors conducts
free and open discussions, which is totally different from thesituation 10 years ago. I believe that the Board’s effectivenesshas improved. I expect to encounter more discussions from a
broader perspective, looking at the management as a whole.
In addition, the Independent Committee, which is constituted
by outside directors only, has become active. In fiscal 2024,
I submitted a proposal on the enhancement of the internal
audit system to the Board of Directors as the chairperson of
the Independent Committee.
In October 2023, Nipro introduced a mandatory retirement
system for executive officers. There is a transitional measure;
however, since the retirement age was set at 65, 22 executive
officers and general managers were replaced, which rejuvenatedthe management. I believe that the introduction of this system
will lead to the success of young energetic employees, who willplay a significant role in achieving Nipro’s sales goal of 1 trillion
yen in fiscal 2031. The acceleration of the fluidity of humanresources and the creation of an environment in which evenyoung people can demonstrate their full potential will further
motivate employees.
Regarding Nipro’s new policy of profit-oriented management,
it is important to review the salary system, allocate investments,and evaluate the results of research and development
fairly. The appropriate use of such capital will create more
efficient management.
Nipro continues to invest in state-of-the-art technologies,
including regenerative medicine, while supplying essential
products that support overall medical care. I expect that
advance investment will bear fruit in the future so that Nipro can
become an essential presence in global healthcare.

Nipro has strong sales skills to grasp detailed needs inthe field and the ability to develop products supported bythese skills. In FY 2023, the policy was profit-oriented.
Reviewing profits by sorting out bad stocks and unprofitableproducts seems to have led to Nipro’s flexible response tovarious changes in clinical settings after the end of the
COVID-19 pandemic.
Nipro HeartLine is an online service that connects a patient’s
home to a medical institution. Currently, it is used for remote
medical examinations in hospitals. The efficiency of hospital
operations was greatly improved by reducing the frequency of
hospital room rounds by nurses and doctors and by automating
the measurement and recording of basic information, such as
pulse. Related Nipro products, such as infusion pumps, canbe sold together, and we achieved further user development
by quickly and flexibly responding to the new needs that arisein the field.
Regarding sustainability, we reviewed the Compliance System,
including not only improvement in the work environment but
also improvement in the internal whistleblowing system. To fully
implement the rich regulations and systems accumulated thus
far, we re-evaluate and revise them and introduce a system
to verify the results. This initiative was the foundation of
Nipro’s governance.
I am also a member of the Research Ethics Review Committee.
We discuss research in detail and continuously make efforts
toward ethical considerations in experiments and clinical trials.

It has been two years since I was appointed as an outside
director of Nipro. I feel that the discussions of the Board of
Directors have become active. I expect active discussions on
management to deepen in the future. Many of the agendasof Nipro’s Board of Directors require highly specialized
knowledge of medical care and medicines in addition tocapital investment. To appropriately examine them and leadthem to rational resolutions, I believe that a preliminary review
system is necessary.
In addition, I understand that the medium-term management
plan of Nipro originally pursues “quality rather than quantity,”and I think that the improvement of the financial structure,
which is the core, particularly the improvement of capitalefficiency, is important. I believe that proper capital allocation
will improve EBITDA, and the reduction in the debt equity
ratio by reinvesting profits will lead to the enhancement of
Nipro’s corporate value, which will also help meet investors’
expectations. We discuss the management of key performanceindicators at the Board of Directors meetings; however, it takes
time to produce actual results. Nevertheless, we must steadily
achieve our goals.
Finally, with regard to the improvement of Nipro’s Compliance
System, I believe that the basic principle is “attack is the bestform of defense.” In addition to the effective staffing of theInternal Audit Division to achieve this goal, I expect that thewhole company’s Compliance System will be further improved
by appropriately reshuffling the personnel in a right-personin-the-right-place manner to expand new perspectives andchange their awareness while paying attention to extremely
specialized areas and deepening communication between
superiors and subordinates in various aspects.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management
Foundation

Social Bond
Reporting

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

45
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Outside Directors’ Messages
Contributing from anunbiased and flat perspective
based on the experience oforganizational reform

Contributing to the sustainablegrowth of the Nipro Group by
leveraging experience in thefinance business

Making use of customers’
viewpoints and expertise tocontribute to the improvementof corporate value

Toshikazu Yoshimori

Yasuhiko Imaizumi

Yuka Kushida

Outside Director

Outside Director

Outside Director

I had developed my management career (such as the formulationof operation planning and sales management) at a leading bank.
Then, I served as a management executive of a listed company
and director in charge of operations of the Japan Health
Insurance Association, where I reformed the organizationand improved the operations.
The organizations where I have worked required an
improvement in the operation system and the effectiveness ofreform. From my experience, I realized the importance of trustin the organization. Unless managers understand the field ordevelop a trust-based relationship with the individuals theywork with, it is infeasible to achieve smooth improvements orreforms. We can realize a highly effective organizational
reform only after we understand the position and backgroundof each member of the organization from a higher perspective
and communicate while being aware of each individual’s
advantages. I wish to use an unbiased and flat manner ofthinking that emphasizes management capability, considerate
thinking, and trust relationships for Nipro’s further growth.
The Nipro Group has a high brand value in the field of medical
devices such as dialyzers that have a global market share
as well as injection/infusion products. To continuously andeffectively utilize this strength and increase revenue further,
we require more accurate management decisions and rapid
actions in line with the transitions in the global economic
environment. I would promote the activation of the Board of
Directors by fulfilling the advice function through aggressive
governance as the responsibility of outside directors andprovide a highly effective supervising function to support
appropriate risk-taking by management. Thus, I will be able
to contribute to sustainable growth and improvement of thecorporate value of Nipro.

I have built my career in a major financial group primarily by
performing banking operations. I have extensive experience incorporate sales, primarily targeting large companies. I was incharge of many industries and companies during my assignment
to the U.S., and provided them with financial services, including
financing. I also provided advice to my clients on establishing
financial strategies, reviewing business portfolios, consideringand executing large-scale investments and acquisitions, andso on; considered these management issues together withthe clients; and provided measures as needed. With my own
experience in corporate management, I was involved in the
management of banks and securities companies within the
major financial group. Subsequently, I worked in the top
management of a large real estate company.
I aim to use my previous experience and strive to realize
Nipro’s sustainable growth and improve corporate value overthe medium to long term. Business expansion and development
are important for the sustainable growth of a company.
Simultaneously, it is important to establish and expand amanagement control foundation for business development,
including risk management, compliance, financial foundations,and the use of human capital. The role of outside directors is toprovide perspectives that are different from those within thecompany and to activate discussions among the directors on
the board. I aim to contribute to initiatives for the realization of
Nipro’s management philosophy of “Supporting the health ofpeople around the world and contributing to society.”

After gaining experience in pharmaceutical manufacturing
and dispensing pharmacies, I established a dispensing
pharmacy company. Since then, I have been engaged inbusiness management for more than 30 years. While runningthe company, I became increasingly interested in management
and earned an MBA degree followed by a PhD in organizational
behavior. Through activities at the university, I gained not only
meaningful knowledge but also a broad network of contacts,
which helped build my solid foundation. As a director of Nipro, I
would like to contribute to the improvement of corporate value
by providing diverse advice from the customers’ viewpoints
based on my experience in dispensing pharmacy management
and by taking a professional approach as a researcher inorganizational behavior.
As I attended Nipro’s board meetings and communicatedwith the employees, I felt that all the individuals were highly
enthusiastic. I was deeply impressed that the staff of Nipro,
which helped expand business on a large scale, maintainedsuch strong passion. I recognized that the corporate creed of“willingness” deeply penetrated the entire company.
This is important for future corporate management, notonly in the healthcare industry but also for other industries,
to deal with an uncertain future. Nipro has already establisheda system to ensure quick response and prompt action to
shifting circumstances, and employees are closely united.
For Nipro, drastic environmental changes in the future will
not only be a challenge but also provide opportunities toovercome the challenge and achieve further growth.
As an outside director, I aim to have a thorough understandingof the Nipro Group’s corporate philosophy to create new
added value in the area of healthcare by personally joining
the company under the concept of “willingness.”NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Management
Foundation

Social Bond
Reporting

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

46
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Audit & Supervisory Board Members’ Messages
My role as an auditor is toprevent serious scandals

Activating the field is exactly
my role as an auditor

Expecting enhancement of
the internal audit system andfinancial structure

Takayuki Nomiya

Shigeru Yanagase

Yoshitaka Akikuni

Audit & Supervisory
Board Member (Full-time)

Audit & Supervisory
Board Member (Outside)

Audit & Supervisory
Board Member (Outside)

Nowadays, news of fraud and scandals by well-known
companies is attracting attention from the media. I think that
one of the most important roles of an auditor is to pre-emptserious scandals in a company by establishing a system for theirprevention. It is important for an auditor to attend meetings
with the Board of Directors and examine important documents.
However, these tasks alone do not help us comprehend theactual situation of the company. What is important is that
we visit the field and gauge the actual state of affairs. For
this purpose, I always visit business offices across thecountry a dozen times a year to directly grasp the factual
situation on ground.
What I have learnt through my experience as a corporate
auditor so far is that the management policy has not been
sufficiently disseminated in the company. The rapid growthand expansion of the Group in recent years are partially
responsible for this. It is most important for all employees
to understand and share the direction of the Group as acompany listed on the prime market. We need to continue toenhance the awareness levels of employees, improve thelevel of the entire Group, and strengthen human resourcesin the future.
Regarding overseas offices, the Overseas Audit Officeconducts on-site audits, by scrutinizing the reports from local
audit corporations. I think our challenge is to consider how tocreate opportunities for auditors to directly visit overseas andunderstand the actual situation on the field.

Fiscal 2024 is my first year after being appointed as an outside
Audit & Supervisory Board member at Nipro. As the sole
independent officer of a manufacturing company, I actively maderemarks at the Board of Directors’ meetings and attempted tocommunicate with the officers and employees. Three Independent
Committee meetings in which only independent directors
attended were held, which I found meaningful. I think that theexternal perspective of the Board of Directors will be further
disseminated by having this committee meet more frequently.
As Nipro is shifting from a sales-oriented to a profit-oriented
policy, communication in the field and listening to opinions will
become more important than ever. This is because “the sourceof profits is in the field.”Technological development requires a strong field powerthat generates and nurtures many ideas. In addition, it isimportant to create an environment in which employees can workwith greater motivation by running a bottom-up mechanism
more efficiently. The larger the organization, the moretime and energy are needed to deliver opinions in the field
to top management, which naturally reduces the speed of
improvement. Management should always be also awareof this fact. To activate working people, the system is more
important than equipment, which is the area to which I,
with my experience at a production site, would like to contribute.
As an Audit & Supervisory Board member, I am consideringcommunicating with more people in charge of businesses anddiscussing with them from a field perspective.
Nipro is a company filled with young people, with diverse
midcareer employees. In addition, the company sells a wide
variety of products. If the diversity of these people andproducts is successfully integrated and nurtured, a further
increase in corporate value is expected.

I was appointed as an outside Audit & Supervisory Board
member of Nipro in fiscal 2024. Although I realize the highadded value and future of Nipro products, which are essential
for the medical care and health of people, some aspects
seem insufficient.
One of these aspects is the enhancement of the audit system.
Recently, Nipro has expanded globally at a remarkable rate.
To establish a perfect audit system, it is important to increase
the number of personnel in the Internal Audit Office according
to the size of the organization, systematically integrate audit
corporations of overseas subsidiaries, and enhance thefunctions of the Audit & Supervisory Board. The enhancementof the Internal Audit Office system was discussed by the
Independent Committee, which consists of outside directors
only, and a summary of the contents was reported at the Boardof Directors’ meeting as a proposal from the committee.
Major organizational changes were implemented in fiscal
2024. We will closely observe the situation in the field todetermine whether effective organizational management
is being implemented according to the intended purpose.
The reinforcement of profit-oriented management fromfiscal 2024 is an important initiative to clearly demonstrate
Nipro’s potential. I believe that a real effect on businessresults will be observed in the future. I will pay attention not
only to profitability but also to the achievement of the KPIs
of financial health and investment efficiency, such as the
reduction of external liabilities and improvement of cash flow.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

47
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Board of Directors and Audit & Supervisory Board Members (As of June 26, 2024)
Head of Outside Directors
Yoshiko Tanaka

Toshiaki Hattori

Yasuhiko Imaizumi

May. 1983 General Manager of Pharmacy Department of General
Incorporated Association Tokushukai (Osaka Head Office)Jun. 1997 General Manager of Pharmacy Department and General
Manager of Planning Department of General Incorporated
Association Tokushukai (Osaka Head Office)Apr. 2002 Part-time Lecturer of Kobe Pharmaceutical University
Jun. 2002 President and Representative Director of
Medihope Corporation (Incumbent)
Jun. 2014 Appointed Director, Nipro Corporation (Incumbent)
Jul. 2014 Council member of Kobe Pharmaceutical University
Jun. 2024 Head of Outside Directors, Nipro Corporation (Incumbent)

Jan. 2000 Branch Manager of Kori Branch, Daiwa Bank Ltd.
(currently Resona Bank, Ltd.)Mar. 2002 General Manager of Taisho Branch, Resona Bank Ltd.
Jun. 2004 General Manager of General Affairs Department,
Administration Division, Toami Corporation
Jun. 2006 Director and General Manager of General Affairs
Department, Administration Division of the same company
Jun. 2008 Managing Director and General Manager of Administration
Division, General Manager of General Affairs Department of
the same company
Jun. 2012 Managing Director and General Manager of Administration
Division, General Manager of General Affairs
Department General Manager of Accounting
Department of the same company
Jun. 2020 Retired from Managing Director of the same company
Jun. 2022 Director of the Company (Incumbent)

Apr. 2008 Executive officer and General Manager of Nagoya Sales
Department of Mizuho Corporate Bank, Limited(currently Mizuho Bank, Ltd.)
Apr. 2010 Managing Director and Executive Officer in Charge of Sales
Department of the same company
Apr. 2012 Managing Director and Executive Officer in Charge of Sales
Branches of the same company
Apr. 2013 Executive Vice President of the Units of Large BusinessCorporations, Business Corporations and Financial andPublic Corporations of Mizuho Financial Group, Inc.

Outside Directors
Yoshiko Shimamori

Toshikazu Yoshimori

Apr. 1990 Manager of Nursing Division of Preparatory Office
for Toho University Sakura Medical Center
Aug. 1990 Manager of Nursing Division of Tokyo
Saiseikai Mukojima Hospital
Jun. 1999 Executive Officer of Japanese Nursing Association
Apr. 2002 Manager of Nursing Division and Assistant to Director of
Kyoto University Hospital
Apr. 2007 Professor of Keio University Faculty of
Nursing And Medical Care
Jun. 2010 President of Tokyo Nursing Association
Jul. 2016 Professor of Institute for Biomedical Sciences of Iwate
Medical University
Apr. 2017 Professor and Dean of School of
Nursing of Iwate Medical University
Apr. 2021 Professor Emeritus and Council member of
Iwate Medical University (Incumbent)
Jun. 2021 Director of the Company (Incumbent)

Apr. 1998 Branch Manager of Tsukiji and Tsukishima Branches, Sakura
Bank Ltd. (currently Sumitomo Mitsui Banking Corporation)
Apr. 2000 Branch Manager of Shinbashi-higashi Branch of
the same company
Apr. 2002 General Manager of Ginza Corporate Sales Department of
the same company
Nov. 2002 Advisor of HORAI Co., Ltd.
Dec. 2002 Director and General Manager of Insurance Department,
General Manager of Real Estate Business Department of
the same company
Oct. 2003 Managing Director and General Manager of President’s
Office, General Manager of Insurance Department of
the same company
Dec. 2008 Senior Managing Director and Executive officer and General
Manager of General Planning Department of the Company
Aug. 2012 Senior Managing Director and Executive officer and General
Manager of Insurance Department, General Manager ofGeneral Planning Department, in charge of Accounting
Department and System Office of the Company
Dec. 2013 Advisor of Muromachi Building Co., Ltd.
Oct. 2014 Director of Japan Health Insurance Association
Apr. 2015 Committee Member of Central Social Insurance Medical Council
Oct. 2021 Member of the Long-Term Care Insurance committee,
Member of the Subcommittee on Long-Term Care Benefits,Expert Member of the Council on Social Security
Jun. 2024 Director of the Company (Incumbent)

Executive Vice President of the Units of Large BusinessCorporations, Business Corporations and Financial andPublic Corporations of Mizuho bank, Ltd.
Representative Vice President of the Units of Large
Business Corporations, Business Corporations and Financial
and Public Corporations of Mizuho Corporate Bank, Limited
Jul. 2013 Representative Vice President of the Units of Large
Business Corporations, Business Corporations and Financial
and Public Corporations of Mizuho Corporate Bank, Limited
Apr. 2014 Representative Vice President of Sales of BusinessCorporations of Mizuho Securities Co., Ltd.
Apr. 2016 Executive Chairman of Mizuho Securities Co., Ltd.
Jun. 2018 Executive Vice President of NIPPON STEEL KOWA REALESTATE CO., LTD.
Apr. 2019 President and Representative Director of Director of
NIPPON STEEL KOWA REAL ESTATE CO., LTD.
Apr. 2023 Director and Executive Advisor of NIPPON STEEL KOWA
REAL ESTATE CO., LTD.
Jun. 2023 Executive Advisor of NIPPON STEEL KOWA REAL ESTATE
CO., LTD.
Outside Director of Nippon Seisen Co., Ltd. (Incumbent)
Jun. 2024 Director of the Company (Incumbent)

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

Board of Directors and Audit & Supervisory Board Members (As of June 26, 2024)
Audit & Supervisory Board Members (Outside)
Yuka Kushida

Shigeru Yanagase

Mar. 1994 President and Representative Director of Mitsuko Ltd.
(currently J MIRAIMEDICAL Co., Ltd.) (Incumbent)
Apr. 2004 President and Representative Director of SAKURA CLINICALRESEARCH Co., Ltd. (Incumbent)
Jun. 2013 Director of PharmaCluster Co., Ltd
Nov. 2013 Councillor of Social Welfare Corporation Kishokai(Incumbent)
Apr. 2019 Councillor of Kyoto Pharmaceutical University (Incumbent)
Jan. 2020 Chairman and Representative Director of Leonis Co., Ltd.
(Incumbent)
Jun. 2021 Executive Vice President of PharmaCluster Co., Ltd(Position to be changed to Director in June 2024)
Apr. 2023 Director of Kyoto Pharmaceutical University (Incumbent)
Jun. 2024 Director of the Company (Incumbent)

Apr. 2003 Manager of Special equipment Division of
Nippon Sheet Glass Company, Ltd.
Jul. 2007 Resigned from the same company
Jun. 2015 Substitute Audit & Supervisory Board Member of the Company
Jun. 2023 Appointed Audit & Supervisory Board Member,
Nipro Corporation (to present)

Audit & Supervisory Board Member (Full-time)
Takayuki Nomiya

Yoshitaka Akikuni

Oct. 1976 Joined the Company
Apr. 1997 General Manager of General Affairs
Feb. 2003 General Manager of Audit OfficeFeb. 2008 Resigned from the Company
Jun. 2008 Auditor of the Company (Present)

Jul. 2001 General Manager of Pension Trust Management Dept. of
Daiwa Bank Ltd. (Currently Resona Bank Ltd.)
Jun. 2006 Executive Officer and General Manager of Trust Assets
Management Dept. of Resona Bank Ltd.
Apr. 2008 Executive Officer of General Funds Dept. ofResona Bank, Ltd.
Jun. 2009 Managing Director of J and S Insurance Service Co., Ltd.
Apr. 2011 Auditor of Osaka Electro-Communication University
Jun. 2011 Outside Auditor of Japan Trustee Services Bank
(currently Japan Custody Bank, Ltd.)
Jun. 2012 Outside Auditor of FUSO CHEMICAL Co., Ltd.
Jun. 2014 Outside Auditor of Kokusai AeroMarine Co., Ltd.
Jun. 2015 Outside Auditor of ISHIHARA SANGYO KAISHA, Ltd.
(Present)
Jun. 2023 Appointed Audit & Supervisory Board Member, Nipro
Corporation (to present)

48
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Medium-Term
Management Plan

Social Bond
ReportingManagement
Foundation

Financial/Data
SectionSustainability of Nipro
Environment
Human Resources Strategy
Research and Development Activities
Intellectual Property Investment

Management Foundation

49
Status of Corporate GovernanceOutside Directors’ Messages
Audit & Supervisory Board Members’Messages
Board of Directors and Audit &Supervisory Board Members

Board of Directors and Audit & Supervisory Board Members (As of June 26, 2024)
President & Representative Director

Yoshihiko
Sano

Senior Managing Directors

Kiyotaka
Yoshioka

TsuyoshiYamazakiTakehito
Yogo

General Manager ofDomestic Business
Division

General Manager ofInternational Business
Division and in chargeof PharmaPackaging
Division

General Manager ofCorporate Planning
Headquarters of
the Company

Toshiaki
MasudaKyoetsu
Kobayashi

Kimihito
MinouraKazuhiko
Sano

General Manager ofMedical Technology
Division for Planning,
Development &Marketing, Chief ofResearch & Development
Institute

General Manager ofStable Production &Crisis Management
Division

General Manager ofRegenerative Medicine
Department, General
Manager of New Business
Development Department,
Business Promotion
Department andBusiness Management
Department of
the Company

General Manager ofFacilities Department,
Chief of Production
Technology Center of
the Company

Managing Directors

Directors

Kenichi
NishidaYasushi
Oyama

HidetoNakamura

Toyoshi
YoshidaGeneral Manager of
Pharmaceutical
Department, General
Manager of
Pharmaceutical
Production Management
Division of the Company

General Manager of
Vascular Division

General Manager ofGeneral Affairs / Human
Resources Department,
General Manager ofGovernance Supervisory
Department of
the Company

General Manager of
Quality Assurance &Regulatory ComplianceDepartment of
the Company

NIPRO Annual Report 2024

Contents

About NIPRO

Financial/Data Section

Management
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section50

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Report
Corporate Information

Financial Review
Overview
In the current consolidated fiscal year, the Company
took advantage of demand opportunities for its mainstay
dialysis-related products and other products. In Japan, in
antibiotic and infusion products, the NHI prices of re-priced
unprofitable products increased, and the sales volumeof oral drugs increased. Overseas, sales of dialyzers
and dialysis-related products were strong. As a result,consolidated net sales increased.
In addition, operating income also increased due to lower
logistics costs resulting from lower ocean freight rates,
despite the impact of higher raw materials costs and energy
prices, higher costs of imported materials due to the weakyen, and higher depreciation expenses due to the start ofoperations of new production lines and new facilities.
Consolidated Business Results
Relevant quantitative data for the period under review has
been converted at the rate of US$1.00 = ¥151.41 (the rateof exchange as of March 31, 2024).
Net Sales
Sales for the current fiscal year were ¥586,785 million(US$3,875.4 million). Sales increased 7.6% YoY.
Cost of Sales
Cost of sales increased 8.8% from the previous period to¥415,465 million. This increase was mainly due to higher
sales and material costs.
The gross profit margin decreased 0.8 percentage
points from the previous period to 29.2%. As a result, grossprofit increased 4.8% from the previous fiscal year to¥171,320 million.
Selling, General and Administrative Expense
Selling, general and administrative expenses increased by
2.2% compared with the previous fiscal year to ¥148,985
million (US$983.9 million). This is mainly due to an increasein labor costs.

Operating Income
As a result of the aforementioned factors, operating income
was up by 26.0% compared with the previous fiscal year to¥22,335 million (US$147.5 million). The ratio of operating
income to net sales increased by 0.5 percentage points
to 3.8%.
Ordinary Income
Ordinary income increased 27.1% from the previous fiscal
year to ¥19,509 million (US$128.8 million). The main factors
were although interest expenses increased due to theimpact of rising interest rates, this was more than offset by
the impact of foreign exchange gains recorded.
Income Before Income Taxes
As a result of the factors outlined above, income before
income taxes increased 14.5% from the previous fiscal yearto ¥19,219 million (US$126.9 million).

(Years ended March 31)

Net sales(Millions of yen)

442,516455,559

3/'20

3/'21

494,789

3/'22

Net Income Attributable to Owners of Parent
Net income attributable to owners of parent was ¥11,109
million (US$73.4 million), compared to net income attributableto owners of parent of ¥4,574 million in the previous fiscal
year. Basic earnings per share increased to ¥68.1 (US$0.4)
from ¥28.0 in the previous fiscal year. Return on equity
increased to 5.1% from 2.3% for the previous fiscal year.

3/'23

586,785

3/'24

Operating income(Millions of yen)

26,42027,62723,882

Income Taxes
Income tax including deferred taxes decreased by 34.9%
compared with the previous fiscal year to ¥7,049 million(US$46.5 million).
Net Income (Loss) Attributable to Non-controlling Interests
Net income attributable to non-controlling interests
amounted to ¥1,060 million (US$7.0 million).

545,199

22,335
17,729

3/'20

3/'21

3/'22

3/'23

3/'24

Income before income taxes(Millions of yen)

23,243
17,51916,777

19,219(10,158)

3/'20

3/'21

3/'22

3/'23

3/'24

NIPRO Annual Report 2024

Contents

About NIPRO

Financial/Data Section

Management
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section51

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Report
Corporate Information

Financial Review
Net Sales by Geographic Segment
Japan
In Japan, net sales increased by 4.9% compared withthe previous fiscal year to ¥304,602 million (US$2,011.7
million) mainly thanks to the increase of sales in the
Medical-Related business.
Americas
In Americas, net sales increased by 10.1% compared withthe previous fiscal year to ¥108,018 million (US$713.4
million) mainly thanks to the increase of sales in the
Medical-Related business.
EuropeIn Europe, net sales increased by 13.0% compared withthe previous fiscal year to ¥77,203 million (US$509.8
million) mainly thanks to the increase of sales in the
Medical-Related business.
Asia
In Asia, sales increased 9.3% YoY to ¥96,961 million(US$640.3 million) due to increased sales in the
Medical-Related business.
Financial Position
Total assets increased ¥82,422 million YoY to ¥1,109,821
million (US$7,329.9 million). Current assets increased¥34,876 million and noncurrent assets increased ¥47,545
million. The increase in current assets was mainly
due to a ¥12,617 million increase in merchandise andfinished goods, and the increase in fixed assets was
mainly due to a ¥40,583 million increase in buildings
and structures (net).
Total liabilities increased ¥5,487 million YoY to ¥840,032
million (US$5,548.1 million). Current liabilities decreased¥8,757 million and noncurrent liabilities increased ¥63,565
million. The main reason for the increase in current liabilities
was decrease of ¥29,797 million in short-term loans

payable, and the reason for the decrease in long-term
liabilities was mainly due to the ¥13,736 million increasein long-term loans payable.
Total net assets increased ¥27,614 million YoY to¥269,788 million (US$1,781.8 million). Shareholders'equity increased by ¥8,800 million and accumulated
other comprehensive income increased by ¥17,548 million.
As a result, the equity ratio increased by 0.9% comparedwith the end of the previous fiscal year to 21.0%.
Cash Flow
Net cash provided by operating activities amounted to¥72,936 million (US$481.7 million). The major cash inflows
were depreciation and amortization and income before
income taxes. The main accounts of cash outflow werean increase in inventories.
Net cash used in investing activities came to ¥87,075
million (US$575.1 million). The principal cash outflow
was for the purchase of fixed assets. Net cash obtainedby financing activities amounted to ¥22,142 million(US$146.2 million). The main account of cash inflow was
repayment of long-term loans, while the main accountof expenditures was repayment of long-term loans
payable. As a result, cash and cash equivalents stoodat ¥96,582 million (US$637.9 million) as of March 31, 2024.
Staff
The total number of employees as of the end of the period
under review was 38,117.
Basic Policy on Distribution of Profit
At Nipro, we regard the return of profits as one of themost important management policies and pay dividends
to our shareholders. We are striving to strengthen our
foundations in development, production, and sales
from a long-term perspective, to improve profitability
and stabilize production, and to establish a rational profit
distribution system.

(Years ended March 31)

Net income attributable to owners of the parent(Millions of yen)

14,20913,455

11,1094,574(12,281)

3/'20

3/'21

3/'22

3/'23

3/'24

95,991

95,342

3/'23

3/'24

Capital investment(Millions of yen)

70,58073,675

3/'21

3/'22

57,866

3/'20

Total assets(Millions of yen)

831,865

854,396

3/'20

3/'21

930,3213/'22

1,027,399

3/'23

1,109,821

3/'24

NIPRO Annual Report 2024

Contents

About NIPRO

Financial/Data Section

Management
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section52

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Report
Corporate Information

Financial Review
Risk Factors
The following are risks that may have an effect on the
Nipro Group's operational results and/or financial condition.
The items concerned were determined as of March 31, 2024.

By expanding production capacity and ensuring astable supply system, the Nipro Group will strive toachieve a drastic reduction in manufacturing costs andsecure profits.

(1) Risks related to procurement of raw materials
The Nipro Group procures materials and parts for its
operations from a large number of suppliers. Some key
materials or parts may be obtained only from a single
supplier or a limited group of suppliers. We make every
effort to obtain long-term, stable supplies of materials
and parts to keep our products in the market, but ourability to do so is affected by many factors, including
those beyond our control, such as supply shortages due
to surges in demand, delays and interruptions in supply
from our suppliers, and other factors. In addition, theproducts manufactured by the Nipro Group include
some that are made from petrochemical products suchas plastics. Should the cost of raw materials such as
petrochemicals rise, there could be a material adverse
effect on our operational results and/or financial condition.
The Nipro Group will secure stable quantities of raw
materials by diversifying procurement of raw materials of
various varieties and origins, and will promote multiple
production sites for its main products.

(3) Risks Related to Changes in Government Healthcare
Policies
The business sector to which the Nipro Group belongs
is intimately connected with the healthcare system andis subject to the regulations laid out by governmentorganizations, including the National Health Insurance
System and the Pharmaceutical and Medical Devices
Act formerly known as the Pharmaceutical Affairs Law.
Should circumstances arise in which we are unable torespond to changes in unforeseeable wholesale changes
in government healthcare policies leading to changes inthe environment, there could be a material adverse effecton our operational results and/or financial condition.
The Nipro Group will continue to develop new products
and technologies based on aggressive R&D activities
and respond to the changing environment in the
medical industry.

(2) Risks Related to Changes in Sale Prices
The products sold by the Nipro Group include some thatare affected by irregular price reductions under theJapanese payment system for medical care, drug prices
and reimbursement prices for medical materials andsupplies. Moreover, should measures to hold down
medical costs also become pervasive worldwide, resulting
in intensified competition between corporations and leading
to prices falling to a greater degree than anticipated,
there could be a material adverse effect on our operational
results and/or financial condition.

(4) Risks Related to Litigation
There is a possibility that the Nipro Group's business or
products may be the subject of a lawsuit for infringementof intellectual property rights due to unknowing use ofanother's patents, etc. In addition, there is a possibility
that our products may cause damage and a lawsuit may
be filed for this reason, and depending on the natureof such lawsuits, a large amount of damages may be
demanded, and there could be a material adverse effecton our operational results and/or financial condition.

(Years ended March 31)

Net assets(Millions of yen)

242,173
161,237

3/'20

174,053

3/'21

269,788

199,867

3/'22

3/'23

3/'24

Basic earnings per share
(Yen)

87.1

82.5

68.1
28.0

(75.3)

3/'20

3/'21

3/'22

3/'23

3/'24

38.8

38.1

3/'23

3/'24

Number of employees(Thousand)

32.8

3/'20

35.3

36.3

3/'21

3/'22

NIPRO Annual Report 2024

Contents

About NIPRO

Financial/Data Section

Management
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section53

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Report
Corporate Information

Financial Review(5) Risks Related to Intellectual Property
The Nipro Group owns numerous patents and trademarks,
and maintains various proprietary rights for the products
it manufactures. Additionally, we take all possible
measures to avoid infringing the patents and proprietary
rights of any third party, and to avoid breaching any
license agreements we have concluded concerningtechnologies. Nevertheless, if an unanticipated claim
for damages were to be made by a third party and thedefense of the Nipro Group were to be rejected, there
could be a material adverse effect on its operational
results and/or financial condition.
The Nipro Group ensures that the technologies usedin our products are protected by patent applications andtakes measures to prevent persistent infringement of ourrights by other companies. In addition, we conduct searches
at multiple stages of the technology development andproduct design process to ensure that we do not infringeon the intellectual property of third parties.
(6) Risks Related to Product Safety
The Nipro Group brings all of its capabilities to bear inensuring product safety in the design, development andmanufacturing of medical devices and pharmaceuticalproducts. There are still risks, however, that accidental
defects or adverse effects could result in damages to athird party and our being sued for liability. To cover theserisks, we therefore maintain general liability and productliability insurance. In the unlikely event of a successful
claim in excess of the insurance coverage, however, there
could be a material adverse effect on our operational
results and/or financial condition.
The Nipro Group has established its own quality
standards and strives to improve product quality and safety,
as well as to comply with related laws and regulations.

(7) Risks Related to Exchange Rate Fluctuations
The Nipro Group, including its overseas subsidiaries,
carries out its foreign currency transactions primarily in
US dollars and euros, but calculates financial statements
for its overseas subsidiaries using Japanese yen for the
purpose of producing consolidated financial statements.
Fluctuations in exchange rates may therefore have amaterial adverse effect on our operational results and/or financial condition.
The Nipro Group is working to minimize the impact byhedging risks through forward exchange contracts for certain
export receivables denominated in foreign currencies.

(Years ended March 31)

17.9

18.8

(8) Risks Related to Fund Raising
The Nipro Group relies on debt finance in the form of loans
from financial institutions or issuance of corporate
bonds and commercial paper, etc., to raise businessand investment funds. If due to turmoil in financial markets,
there is a reduction in lending from financial institutions
or a significant downgrade of our credit rating by credit
rating agencies, we may not be able to raise the necessary
funds when we need them on acceptable terms. At thesame time, we may incur restrictions on our fundraisingcapabilities or see an increase in the cost of fundraising.
Any of these occurrences could have a material adverse
effect on our operational results and/or financial condition.
In order to ensure efficient and stable procurementof business funds, the Nipro Group has entered into
commitment line agreements with several financial
institutions to secure financing.

3/'20

3/'21

Equity ratio
(%)

19.9

20.1

21.0

3/'22

3/'23

3/'24

Return on assets
(%)

1.7

1.5
1.0
0.5

(1.5)
3/'20

3/'21

3/'22

3/'23

3/'24

Return on equity
(%)

9.2

(9) Risks Related to Investment Value
The Nipro Group's assets include investments in stocks
and other securities. These investments have been madefor purposes such as building good business relationships
with the issuers of such securities, or for gathering useful
information for the development of new products or

7.8
5.1
2.3

(7.9)
3/'20

3/'21

3/'22

3/'23

3/'24

NIPRO Annual Report 2024

Contents

About NIPRO

Financial/Data Section

Management
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial Review
new business opportunities. Should the value of theseinvestments decline significantly owing to fluctuationsin the stock market, circumstances at an issuer, or achange in the accounting methods used to deal withthese investments, there could be a material adverse
effect on our operational results and/or financial condition.
(10) Risks Related to M&A and Business Alliances
The Nipro Group conducts M&A activities and enters
into business alliances to reinforce its business base.
Prior to concluding these deals, we carry out a thoroughinvestigation of the target company. However, should any
problems arise such as the discovery of unrecognizedliabilities or should the development of the acquired
business not proceed as planned, there could be amaterial adverse effect on our operational results and/or
financial condition.
The Nipro Group strives to closely scrutinize themanagement plans of target companies and monitor
their business conditions and market environment.
(11) Risks Related to Controls on Personal Information
The Nipro Group has established strict precautions toprotect the confidentiality of personal information in ourpossession. However, if due to unforeseen events or an
accident this personal information is leaked outside thegroup, causing a loss of trust or customers, there could
be a material adverse effect on our operational results
and/or financial condition.
The Nipro Group has established and strictly enforces
rules for information management, and has implemented
system measures deemed necessary.
(12) Risks related to infectious disease spread
An abnormal situation such as the spread of a newcoronavirus infection or a natural disaster could occur on ascale beyond our expectations. However, if the production

base is closed, logistics are stagnant, or the business
operations towards major customers become difficult,there could be a material adverse effect on our operational
results and/or financial condition.
The Nipro Group ensures an environment in which work
can continue by stockpiling necessary infection-prevention
supplies such as disinfectant, implementing staggered
work hours, and proactively utilizing remote work tools toprevent the spread of infection.
(13) Other Risks
Fires, earthquakes, acts of terrorism, wars, epidemics,
or other unforeseen man-made or natural disasters
affecting areas or facilities where the Nipro Group
conducts its business activities may cause a delay orinterruption in production, sales, distribution, or provisionof services. Should such a delay or interruption be
extended, there could be a material adverse affect on
our operational results and/or financial condition.

Financial/Data
SectionConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

54
Independent Auditor’s Report
Corporate Information

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

55

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Ten-Year Summary

Nipro Corporation and its Consolidated Subsidiaries
Years ended March 31
Income Statement Data:
Net sales

Medical-Related (*1)¥

Pharmaceutical-Related (*1)
PharmaPackaging (*1)

2022

2021

2020

2019

2018

2017

2016

2015

586,785 ¥545,199 ¥494,789 ¥455,559 ¥442,516 ¥426,399 ¥395,397 ¥359,699 ¥366,650 ¥

325,084$3,875,475

74,32072,734

74,386

72,38870,35763,482

66,846

69,14062,26657,372490,855

453,613415,465

419,957

51,754
752

381,749

373,481

46,361
559

345,519

343,824

38,655691

316,718

335,767

36,217
174

308,304

327,359

35,526
31

295,767

300,117

28,40429

24,204

16,571

147,514

13,104

14,135

12,06010,553100,036

Medical-Related (*2)

42,321

38,59939,241

38,87936,24936,72236,522

Pharmaceutical-Related (*2)

4,432PharmaPackaging (*2)

2,452Other (*2)

80

5,615
2,739
257

Income before income taxes

19,21916,777

Increase in tangible and intangible fixed assets

103,628

102,633

R&D expenses

20,846

19,669Net income attributable to owners of parent

11,109Depreciation and amortization
Balance Sheet Data:
Total assets

Property, plant and equipment—net

Working capital

Current liabilities

Long-term liabilities

Common stock
Capital surplus

Net assets

56,030¥101

23,243

1,992
376

17,51913,196675

176(10,158)

13,455

14,209(12,281)

46,27543,31339,84938,682

1,027,399 ¥

157,691

186,379

366,475

2,889

10,6084,574

1,109,821 ¥
481,508

9,826

432,550

302,910

96,793

18,734930,321 ¥377,752

125,466

311,993

78,861

18,652
854,396 ¥335,906

149,866

271,501

64,67018,204
831,865 ¥

307,551

143,626

289,404

10,662778
146

21,233845,821 ¥284,483

168,675

161,237

695,306$7,329,908

184,861

134,983

115,970

71,945

1,041,484

223,756

220,195

84,39784,39784,39784,39784,397—174,053

708,882 ¥244,222

278,4025

171,830

370,060

752,839 ¥252,147

4

73,375

826,477 ¥

270,273

251,792—

199,867

137,680

251,186

—

530

8,645

274,277

0242,173

10,26916,194684,422

27,667

11,517

57,101

29,276

47,69830,147

16,11358,310279,519

126,934

31,12861,990983,985

19,90832,565

16,526

399,712

269,788

26,284131

35,252381,223

84,39718,32461(2,889)12,470408,841

84,397(10)(1,618)23,813

19,718418,460

84,397

17,026(1,313)28,20482,987

11,346482,315

84,39775

30,63891,671

11,829473,557

84,397(1,308)86,326

12,13664,394

5,391

28,770106,804

23,827383,299

27,088

107,791

26,420104

2,743,975

111,21227,62732

29,8302,995,929

225,525

125,386

23,88229

32,184

237,777

250,773

145,720

17,72928,331

272,167

244,602148,985

22,335

262,198

268,272

Selling, general and administrative expenses
Operating income

2024

2023

816

Cost of sales

Thousands of
U.S. dollars (Note 1)

2024

58,035

Other (*1)

Millions of yen

392,087—

183,485

324,639—

176,408

281,227—

175,507

238,095

635

178,810

3,180,165

2,420,416

3,127,650
557,4124

1,781,841(*1) Effective the fiscal year ended March 31, 2011, the Company has adopted ASBJ Statement No. 17 “Accounting Standard for Disclosures about Segment of an Enterprise and Related Information” (March 27, 2009) and ASBJ Guidance
No. 20 “Guidance on Accounting Standard for Disclosures about Segment of an Enterprise and Related Information” (March 21, 2008). Net sales and operating income for the period for the fiscal year ended March 31, 2010 have been
restated to show what the Group’s result would have been if the new accounting standards had been applied in that year. Before the fiscal year ended March 31, 2009, net sales and operating income have been stated in compliancewith previous accounting rules. In addition, the corporate reorganization was conducted effective on October 1, 2012 in order to enforce Pharmaceutical-Related business and build a strong cooperative relationship among MedicalRelated, Pharmaceutical-Related and Glass-Related businesses. As a result of this reorganization, some business divisions included in Glass-Related business were changed to Pharmaceutical-Related business. The segment
information is presented as if the aforementioned reorganization had been conducted at the beginning of the fiscal year 2012, and the presentation for the prior fiscal years are not restated. Also, effective on the half year ended
September 30, 2014, 13 subsidiaries including Nipro Glass France S.A.S., Nipro Glass Belgium N.V., Nipro Glass Germany AG, Nipro Sterile Glass Germany AG, and Nipro Glass Americas Corporation were reclassified from MedicalRelated Business to PharmaPackaging related Bussiness which was formerly known as Glass-Related Business by the corporate reorganization. Segment information after 2014 is based on this reclassification.
From fiscal year ended March 31, 2019, the Company has conducted reorganization for the purpose of doing synthetic PharmaPackaging business and increasing synergy for Pharmaceutical-Related business. As a result of thisreorganization, some business divisions included in Pharmaceutical-Related business were changed to PharmaPackaging business. Effective the fiscal year ended March 31, 2022, Nipro JMI Pharma Ltd. was reclassified from theMedical-Related Business to the pharmaceutical-related Business. The presentations for prior fiscal years are not restated.
(*2) Operating income at the operating segment level is not adjusted for intra-segment transactions. See Note 13. “Segment Reporting” to the consolidated financial statements.

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

56

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Ten-Year Summary

Nipro Corporation and its Consolidated Subsidiaries
Years ended March 31
Per Share Data:
Basic earnings

Diluted earnings
Cash dividends
Equity

2024
¥

2023

68.1

60.3
25.0

¥

2022

2021

2020

Yen

2019

28.0 ¥

82.5 ¥

87.1 ¥(75.3) ¥

22.0

27.0

28.0

13.5

24.8

77.4

—

2018

73.6 ¥

2017

71.1 ¥

2016

67.5 ¥

116.2 ¥

81.0

33.5

32.5

66.7

64.5

61.3

114.7

28.5

29.0

2024

2015

—

28.0

U.S. dollars(Note 1)

—

$

0.4

0.4
0.2

9.4

1,426.5

1,265.0

1,135.7

987.3

912.2

990.1

1,037.2

999.5

977.6

988.8

171,459,479

171,459,479

171,459,479

171,459,479

171,459,479

171,459,479

171,459,479

171,459,479

171,459,479

171,459,479—

Equity ratio (*3) (%)

21.0

20.1

19.9

18.8

17.9

19.1

20.9

22.1

23.4

24.1

—

Return on equity (*3) (%)

5.1

2.3

7.8

9.2

(7.9)

7.3

7.0

6.8

11.8

8.5

—

Number of common shares issued
Number of employees

Selected Data and Ratios:
Return on assets (*3) (%)
Price earnings ratio (*3) (times)

38,1171.0

17.9

38,7700.5

36.3

36,2591.5

12.4

35,251

1.7

15.3

32,786(1.5)—

29,325

1.5

19.3

28,3301.5

21.6

27,415

1.6

23.2

24,2432.8
9.2

23,153

1.9

14.1

—

—
—

(*3) Equity ratio is the ratio of the sum of the total shareholders’ equity and accumulated other comprehensive income to total assets at the period end. Return on assets is the ratio of net income attributable to shareholders of parent forthe period to average of total assets during the period. Return on equity is the ratio of net income for the period to average of the sum of total shareholders’ equity and accumulated other comprehensive income during the period.
The price earnings ratio is the ratio of the closing price of the Company’s shares listed on the First Section of the Tokyo Stock Exchange on the last trading day in March of each year to the basic earnings per share.
(*4) Until 2016, yen amounts are rounded to the nearest million yen. Since 2017, yen amounts are rounded down to the nearest million yen.
(*5) The Group formally adopted the Accounting Standards for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; hereinafter “Revenue Recognition Standard”) on April 1, 2021, the start of the current fiscal year. Revenue isrecognized when control is transferred to the customer, i.e., when delivery is completed.

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section57

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Consolidated Balance Sheets
Nipro Corporation and its Consolidated Subsidiaries
As of March 31, 2024 and 2023
AssetsCurrent assets:
Cash and deposits
Trade notes and accounts receivable
Goods and products
Work in progress
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Tangible assets (Note 5):
Buildings and structures
Accumulated depreciation and impairment
Buildings and structures (net)
Machinery and equipment
Accumulated depreciation and impairment
Machinery and equipment (net)Land
Lease assets
Accumulated depreciation
Lease assets (net)
Construction in progress
Other tangible fixed assets
Accumulated depreciation and impairment
Other tangible fixed assets (net)Total tangible fixed assets
Intangible assets (Note 5):
Goodwill
Lease assets
Other intangible assets
Total intangible assets
Investments and other assets:
Investment securities (Note 6)
Assets for retirement benefits
Deferred tax assets (Note 4)
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

Millions of yen

2024¥

99,667160,240
150,391
20,75755,91542,555(5,362)
524,166

2023¥

89,678160,271
137,774
17,42752,59235,701(4,157)489,289

Thousands of
U.S. dollars (Note 1)

2024

$

658,265
1,058,320
993,272
137,096369,299
281,062(35,415)
3,461,900¥ 337,409(156,680)
180,729
408,015(288,780)
119,235
47,06140,149(16,778)
23,371
83,284
101,983(74,156)
27,826
481,508¥ 287,677(147,531)
140,145
360,642(265,162)
95,48047,12335,947(13,115)
22,831
103,336
89,858(66,224)
23,633
432,550$ 2,228,451(1,034,811)
1,193,640
2,694,771(1,907,273)
787,497
310,824265,171(110,815)
154,355
550,061
673,557(489,771)
183,785
3,180,165¥

15,6071,921
17,60935,138¥14,514
2,302
17,18734,004$32,945
94
13,11629,990(7,139)69,007¥ 585,655¥1,109,821¥

37,220—10,37730,267(6,309)71,555¥ 538,109¥1,027,399$¥

The accompanying notes are an integral part of these statements.

103,082
12,687116,306
232,077

217,590621
86,629198,074(47,150)
455,764$ 3,868,008$ 7,329,908

Millions of yen

Liabilities and net assets
Current liabilities:
Trade notes and accounts payable
Short-term debt (Notes 5 and 9)
Commercial paper
Current portion of corporate bonds (Notes 5 and 9)
Current portion of lease obligations
Accrued payables
Income taxes payable
Advance received
Unearned revenue
Provision for bonuses
Provision for directors’ bonuses
Notes payable-facilities
Other current liabilities
Total current liabilities

Long-term liabilities:
Corporate bonds
Convertible bond-type bonds with subscription rights
to shares
Long-term debt (excluding current portion)(Notes 5 and 9)
Lease obligations (excluding current portion) (Note 9)
Deferred tax liabilities (Note 4)
Liabilities for retirement benefits (Note 10)
Provision for directors’ retirement benefits
Provision for share awards for directors (and other officers)
Provision for loss on lawsuits
Other long-term liabilities
Total long-term liabilities
Total liabilities

Net assets (Note 12):
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income (loss)
Net unrealized gains on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

2024

2023

Thousands of
U.S. dollars (Note 1)

2024

81,502
160,367
20,0004,700
4,748
25,837
6,125
368
345
11,43611
5,591
45,439¥ 366,475¥

76,141
130,570
10,0002,000
4,440
23,153
4,897
426
578
5,955
13
10,191
34,542¥ 302,910$ 538,292
1,059,161
132,091
31,041
31,361
170,647
40,4532,433
2,284
75,53577
36,927300,108$2,420,416¥¥

76,700$ 541,575

316,555

1,999,996¥

82,00030,150302,819

30,210199,128

25,312
1,619
5,675
557
10
227
25,184¥ 473,557
840,032

25,265
1,276
5,164
686
11
153
26,291¥ 482,315
785,225

167,181
10,69537,484
3,680
72
1,500
166,335$3,127,650
5,548,067¥¥

84,397—
95,521(10,748)
169,170$ 557,412
4
688,998(70,996)
1,175,419

7,162
(47)
28,716
1,315
37,14735,856242,173¥1,027,399

64,095(330)
287,409
10,066361,240
245,181
1,781,841$7,329,908

84,397
0
104,321(10,749)
177,970

9,704(50)
43,516
1,524
54,69537,123
269,788¥1,109,821

The accompanying notes are an integral part of these statements.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Consolidated Statements of Income
Nipro Corporation and its Consolidated Subsidiaries
For the fiscal years ended March 31, 2024 and 2023

Net sales (Note 17)
Cost of sales
Gross profit

Selling, general and administrative expenses(Notes 14 and 15)
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Hyperinflation accounting adjustment
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Government subsidies
Gain on sales of investment securities
Other
Total extraordinary income

Extraordinary loss
Loss on sales of fixed assets
Loss on retirement of fixed assets
Impairment losses
Loss on tax purpose reduction entry of fixed assets
Loss on valuation of investment securities
Provision for allowance for doubtful accounts
Compensation for damages
Loss on litigation
Loss on sales of investment capital of subsidiaries
or associates
OthersTotal extraordinary loss
Profit before income taxes
Income taxes
Income taxes-deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Thousands of
U.S. dollars (Note 1)¥545,199
381,749¥163,449$3,875,475
2,743,975$1,131,499

148,985

145,720

983,985¥ 22,335¥ 17,729$ 147,514

1,576
849
2,555
3,958
8,940

1,096
1,394
2,125
2,686
7,302

10,413
5,607
16,88026,14559,045

6,527
1,996
704
2,537
11,765¥ 19,509

4,501
1,451
1,007
2,724
9,684
¥ 15,346

43,11013,184
4,656
16,75577,707$ 128,852

2,505
1,367
3,682
314
7,870

2,548
785
1,954
487
5,775

16,550
9,028
24,321
2,079
51,980

191
647
736
661
2,218
28
540
226

3
568
768
785
—
140
549
448

1,262
4,277
4,863
4,368
14,651
184
3,568
1,493

1,229
8,160
¥ 19,219
10,049(2,999)7,049¥ 12,169
1,060
11,1091,080
4,345¥ 16,777
6,790
4,052
10,843¥ 5,934
1,359
4,574

8,119
53,897$ 126,934
66,369(19,812)46,557$80,377
7,001
73,375The accompanying notes are an integral part of these statements.

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section58

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Nipro Corporation and its Consolidated Subsidiaries
For the fiscal years ended March 31, 2024 and 2023

2024

2023

¥586,785
415,465¥171,320

1,681

Management
Foundation

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Consolidated Statements of Comprehensive Income

Millions of yen

2024

Social Bond
Reporting—

11,108Millions of yen

Thousands of
U.S. dollars (Note 1)

2024

2024

2023

¥12,169¥ 5,934$ 80,377

Valuation difference on available-for-sales securities

2,543(2,627)

16,799Foreign currency translation adjustments

14,432

20,05895,318

531

1,558

3,507

Net income

Other comprehensive income:Deferred gains (losses) on hedges

Remeasurements of defined benefit plans

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

1

217

17,72591965

20,046

6

1,439

117,071

Comprehensive income¥29,895¥25,980$197,448

Owners of parent

28,65824,798189,274

Comprehensive income attributable to:Non-controlling interests

The accompanying notes are an integral part of these statements.

1,237

1,181

8,173

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

59

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Consolidated Statements of Changes in Net Assets
Nipro Corporation and its Consolidated Subsidiaries
For the fiscal years ended March 31, 2024 and 2023 consisted of the following:
Capital stock

Balance at March 31, 2022
Hyper Inflation Adjustment
Restated balance
Cash dividends
Net income attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in the scope of consolidation
Change in parent’s ownership interest due totransactions with non-controlling interests
Decrease of retained earnings (Other)
Other net change during the year
Total changes during period
Balance at March 31, 2023
Hyper Inflation Adjustment
Restated balance
Cash dividends
Net income attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in the scope of consolidation
Change in parent’s ownership interest due totransactions with non-controlling interests
Decrease of retained earnings (Other)
Other net change during the year
Total changes during period
Balance at March 31, 2024

¥84,397¥

84,397

—
—

(0)
(296)
—
¥84,397¥

84,397—¥84,397¥(10,748)

(241)

(286)
¥ 95,521
814
96,335(3,028)
11,10900Capital surplus$—

557,412—4

The accompanying notes are an integral part of these statements.

¥ 94,667
1,140
95,807(4,256)4,574——$557,412—$557,412

Treasury
stock

(363)

—

¥

Retainedearnings296

0

Capital stock

Balance at March 31, 2023
Hyper Inflation Adjustment
Restated balance
Cash dividends
Net income attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in the scope of consolidation
Change in parent’s ownership interest due totransactions with non-controlling interests
Decrease of retained earnings (Other)
Other net change during the year
Total changes during period
Balance at March 31, 2024

Capital surplus

4$4Millions of yen(10,748)(0)0¥168,316
1,140
169,456(4,256)
4,574
(0)
0
(241)
(67)

(0)
¥(10,748)(10,748)
(0)
0

(286)
¥169,170814
169,984(3,028)
11,109(0)
0—

Deferred gains(losses)on hedges¥ 9,789¥(108)

9,789

(108)

Foreigncurrencytranslation
adjustments¥ 6,885

6,885

Total
Accumulated
accumulated
retirement benefit
other compreadjustments
hensive income

Noncontrollinginterests¥ 356¥16,922¥14,628356

16,922

14,628

7,985¥177,970

Retainedearnings

Treasury
stock

Total
shareholders’equity$630,877
5,379
636,256(20,001)
73,375$(70,992)(70,992)(5)
0$1,117,297
5,379
1,122,677(20,001)
73,375(5)
0—(2,627)(2,627)¥ 7,16261
61¥ (47)

21,83021,830¥28,716

959
959¥1,315

20,224
20,224¥37,147

21,22821,228¥35,856

7,162

(47)

28,716

1,315

37,14735,856(632)(4)$(70,996)

52,741$1,175,419¥199,867
1,140
201,008(4,256)
4,574
(0)
0
(241)
(67)
41,452
41,165¥242,173
814
242,988(3,028)
11,109
(0)
0
—
0

2,542
2,542
¥ 9,704(3)(3)¥ (50)

14,80014,800¥43,516

Net unrealized
gains onavailable-for-salesecurities

Deferred gains(losses)on hedges$47,303$(310)

Foreigncurrencytranslation
adjustments

47,303(310)

Thousands of U.S. dollars (Note 1)$189,661

189,661208
208¥1,524

17,54817,548¥54,695

Total
Accumulated
accumulated
retirement benefit
other compreadjustments
hensive income

1,266
1,266
¥37,123
Noncontrollinginterests$ 8,687$245,341$236,818

8,687

245,341

236,818

4

(632)

Total
net assets

(296)

0

(95)
(0)
¥(10,749)

52,741$688,998

Net unrealized
gains onavailable-for-salesecurities

(296)

(95)
7,985
¥104,321

Total
shareholders’equity(95)
18,81426,800¥269,788
Total
net assets$1,599,458
5,379
1,604,837(20,001)
73,375(5)
0—
4

16,791
16,791$64,095(20)(20)$(330)

97,74897,748$287,409

1,379
1,379
$10,066

115,899
115,899$361,240

8,362
8,362
$245,181(632)
124,262
177,004$1,781,841

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section60

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Consolidated Statements of Cash Flows
Nipro Corporation and its Consolidated Subsidiaries
For the fiscal years ended March 31, 2024 and 2023

2024
Operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Share of loss (profit) of entities accounted for using
equity method
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in assets for retirement benefits
Increase (decrease) in liabilities for retirement benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Government subsidies
Loss on tax purpose reduction entry of fixed assets
Loss (gain) on valuation of investments in capital ofsubsidiaries and associates
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 received
Interest expenses paid
Other proceeds
Other payments
Income taxes paid
Income taxes refund
Cash flows from operating activities

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 sale of investments in capital of subsidiaries
resulting in change in scope of consolidation
Purchase of shares of subsidiaries
Purchase of investments in capital of subsidiaries
Payments for acquisition of shares in subsidiaries
resulting in change in scope of consolidation
Payments for acquisition of businessThousands of
U.S. dollars (Note 1)

Millions of yen

2024

2023

¥ 19,219
56,030736
2,842¥ 16,777
46,275768
2,468$126,934
370,060
4,863
18,772

1,631
(94)
587
(2,425)
6,527(5,202)(3,682)
2,218(1,367)
661

1,897
—
377
(2,490)
4,501(7,102)(1,946)
—
(785)
785

10,776(621)
3,877(16,020)
43,110(34,361)(24,321)
14,651(9,028)
4,368

7,845
(13,847)
272(3,490)12,114
159
84,414
2,285(6,272)905(878)(9,070)1,551
72,936(11,113)(25,018)(5,781)(6,439)7,050
593
22,2692,304(4,251)868(1,482)(9,568)255
10,39551,818(91,459)
1,799(23,054)
80,012
1,051
557,523
15,094(41,424)
5,982(5,803)(59,904)
10,244
481,711(2,176)
4,349
(463)
8,594

(2,036)
2,546
(51)
4,979

(14,376)
28,727(3,058)56,764

(13)
(196)

(952)
—

(86)
(1,299)

1,996

1,681

(1,011)(3,278)(22)

Millions of yen

1,451

—

—

(2,076)(26)

13,184

11,108(6,677)(21,650)(147)

Investing activities:
Payments for purchase of fixed assets
Proceeds from sales of fixed assets
Payments for retirement of fixed assets
Proceeds from capital investment subsidies
Net decrease (increase) in short-term loans receivable
Payments for loans receivable
Proceeds from collection of loans receivable
Other payments
Other proceeds
Cash flows from investing activities
Financing activities:
Net increase (decrease) in short-term debt
Net increase (decrease) in commercial paper
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Proceeds from issuance of stock
Proceeds from sale of treasury stock
Payments for purchase of treasury stock
Proceeds from sale and leaseback
Payments for repayment of finance lease obligations
Cash dividends paid
Dividends paid to non-controlling interests
Payments for acquisition of subsidiaries’ stock withoutchange in scope of consolidation
Repayments of installment payables
Other
Cash flows from financing activities

Effect of exchange rate changes 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 equivalents from newly
consolidated subsidiaries
Ending balance of cash and cash equivalents

The accompanying notes are an integral part of these statements.

Thousands of
U.S. dollars (Note 1)

2024

2024

2023

¥(94,203)
4,907
(62)
1,243
(4,826)
(28)
113
(2)
—
(87,075)¥(84,835)
10,799
(256)
10
23
(140)
216
(10)
72
(71,737)$(622,174)
32,409(413)
8,209(31,874)
(187)
752
(15)
—
(575,097)

6,146
10,00072,586(65,491)
9,949(2,000)
—
—
(34)
950
(4,310)(3,025)(204)(15,116)
10,000115,025(74,963)—(2,200)19,730—(1)
214(4,064)(4,247)(141)

40,59766,045479,405(432,543)
65,710(13,209)
—
—
(230)
6,279
(28,467)(19,979)(1,349)(2,425)—22,142(840)(0)
43,077(16,016)—
146,243

3,883

12,87525,648

—

(315)

—

11,886
84,695(5,389)90,07178,506559,380¥ 96,582¥ 84,695$ 637,886

—

13

—

NIPRO Annual Report 2024

Financial/Data Section
SectionFinancial/Data

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
SectionConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

61
Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
1. Basis of Presenting Consolidated Financial Statements

2. Summary of Significant Accounting Policies

The financial statements of Nipro Corporation and its consolidated domestic subsidiaries havebeen prepared in accordance with the provisions set forth in the Financial Instruments andExchange Law of Japan and its related accounting regulations, and in conformity withaccounting principles generally accepted in Japan, which are different in certain respects as
to application and disclosure requirements of International Financial Reporting Standards.
Effective from the year ended March 31, 2009, the Company has adopted the “Practical
Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” (PITF No. 18) and as a result, the accounts of consolidated overseas
subsidiaries are prepared in accordance with either International Financial Reporting Standards
or generally accepted accounting principles in the U.S., with adjustments for the specified
four items as applicable.
In preparing the accompanying consolidated financial statements, certain reclassifications
have been made to the consolidated financial statements issued domestically. However, no
adjustment has been made which would change the financial position or the results ofoperations presented in the original financial statements.
The financial statements presented herein are expressed in Japanese yen and, solely forthe convenience of the reader, have been translated into U.S. dollars at the rate of ¥151.41 =US$1, the approximate exchange rate on March 31, 2024. These translations should not be
construed as representations that the Japanese yen amounts have been, could have been, or
could in the future be, converted into U.S. dollar amounts at that or any other rate.
Amounts of less than one million yen and one thousand U.S. dollars are rounded down to
the nearest million yen and thousand U.S. dollars, respectively, in the presentation of theaccompanying consolidated financial statements. As a result, the totals in yen and U.S. dollars
do not necessarily agree with the sum of the individual amounts.

(a) Basis of Consolidation
The consolidated financial statements include the accounts of the Company and the significant
subsidiaries and affiliated companies accounted for by the equity method.
Investments in unconsolidated subsidiaries are stated at cost and the equity method is
not applied for the valuation of such investments since they are considered immaterial in
the aggregate.
All significant intercompany balances and transactions have been eliminated inconsolidation. All material unrealized profits included in assets resulting from transactions
within the Company and its consolidated subsidiaries have been eliminated. The difference
between the cost of investments in subsidiaries and affiliates and the equity in their net assets
at the dates of acquisition is amortized on a straight-line basis over 5 to 20 years.
All accounts herein have been presented on the basis of the 12 months ended March 31,
2024 for the Company and for consolidated domestic subsidiaries, and December 31, 2023
for all consolidated overseas subsidiaries.
Adjustments have been made for any significant intercompany transactions which took
place during the period between the end of the accounting period of the consolidated
overseas subsidiaries and that of the Company.
(b) Translation of Foreign Currencies
Balance sheets of consolidated overseas subsidiaries are translated into Japanese yen at thecurrent exchange rates as of the balance sheet date except for shareholders’ equity, which istranslated at the historical rates. Income statements of consolidated overseas subsidiaries aretranslated into Japanese yen at the average exchange rates for the period. Resulting translation
adjustments are shown as “Foreign currency translation adjustments” in the “Accumulated
other comprehensive income” section of net assets.
(c) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, readily available deposits and short-term
highly liquid investments with original maturities of three months or less.
(d) Allowance for Doubtful Receivables
An allowance for possible losses from trade notes and accounts receivable, loans and otherreceivables is provided based on the actual rate of past bad debts and the uncollectible
amounts of certain individual receivables.

NIPRO Annual Report 2024

Financial/Data Section
SectionFinancial/Data

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
SectionConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

62
Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(e) Inventories
Inventories are stated principally at the lower of average cost or net realizable value.
(f) Property, Plant and Equipment
Depreciation of property, plant and equipment of the Company and its consolidated domestic
subsidiaries is computed principally by the declining-balance method. The straight-line
method is applied to buildings acquired by the domestic companies after April 1, 1998 andbuildings and accompanying facilities and structures acquired by the domestic companies
after April 1, 2016, and is principally applied to the property, plant and equipment ofconsolidated overseas subsidiaries.
(g) Intangible Assets
Amortization of intangible assets, including software for the Company’s own use, is computedby the straight-line method over the estimated useful life of the asset.
Goodwill is amortized on a straight-line basis over the period the Company benefits fromits use. If the amount is not significant, it is expensed when incurred.
(h) Investment Securities
Available-for-sale securities, which are not classified either trading securities or held-tomaturity debt securities, are stated at fair value. Unrealized gains and losses, net of applicabletaxes, are reported as “Accumulated other comprehensive income” of net assets.
Non-marketable available-for-sale securities are stated at cost determined by the averagemethod.
For other-than-temporary declines in fair value, investment securities are reduced to net
realizable value by a charge to income.
(i) Employees’ Retirement and Severance Benefits<Method of Attributing Expected Benefit to Periods>
In calculating retirement benefit obligation, the estimated amount of retirement benefit isattributed to the periods on the benefit formula basis.
<Accounting Method of Actuarial Gains and Losses and Prior Service Costs>
Prior Service Costs are amortized on a straight-line basis over a certain period (mainly 5
years) which is within the average of the estimated remaining service years of the employees
when they occur.
Actuarial gains and losses are amortized on a straight-line basis over a certain period (mainly
five years) which is within the average of the estimated remaining service years of theemployees commencing from the following year in which they arise.
Some consolidated subsidiaries amortize their actuarial gains and losses all at once in thefiscal year in which they arise.

(j) Derivatives
Derivatives are stated at fair value, with changes in fair value included in net income or loss forthe period in which they arise, unless derivatives are used for hedging purposes. Please see(l) Hedge Accounting below.
(k) Leases
Finance leases, except for certain immaterial leases, are capitalized in the balance sheet.
Amortization of finance lease assets is calculated by the straight-line method over the lease
period assuming no residual value.
The Company and its consolidated domestic subsidiaries account for certain financeleases as operating leases, which do not transfer ownership to the lessee.
(l) Hedge Accounting<Method of hedge accounting>
The deferral hedge accounting method is applied in principle. The exceptional accounting
method is applied to interest rate swaps when certain hedging criteria are met.
<Hedge instrument and hedge items>(Hedging instruments)(Hedged items)
Interest rate swap
Interest on short-term and long-term debt
<Hedge policy>
The Company uses interest rate swaps to reduce interest volatility risk.
<Method for assessing hedge effectiveness>
Hedge effectiveness is not assessed when substantial items and conditions of hedging
instruments and the hedged transactions are the same, and is not assessed when cash
flow can be completely offset for a whole hedge period.
(m) Income Taxes
The provision for income taxes is computed based on income for financial statement purposes.
The asset and liability approach is used to recognize deferred tax assets and liabilities for the
future tax consequences of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for income tax purposes.
(n) Amounts per Common Share
Basic earnings per share are computed by dividing net income available to commonshareholders by the weighted average number of common shares outstanding for the period.
Diluted earnings per share reflect the potential dilution that could occur if securities were
exercised or converted into common stock. Diluted earnings per share of common stock
assume full conversion of the outstanding convertible notes and bonds at the beginning of theyear (or at time of issuance) with an applicable adjustment for related interest expense, net oftax, and full exercise of outstanding warrants.

NIPRO Annual Report 2024

Contents

Financial/Data Section
SectionFinancial/Data

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section63

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(o) Revenue Recognition
Revenue is recognized upon delivery of products sold. The customer acquires ownershipand control of the products upon delivery. The Group has fulfilled its performance obligation
at this time.
Other Revenue Sources• As an agent
When the Company acts as an agent, revenue is recognized on a net basis.
• Repurchase agreements
Liability is recognized for the amount of the remaining inventory of the goods to be supplied
to the buyer.
Revenue is the contract price less returns, discounts, and rebates.
Accounts receivable are all current. All are collected within a year from delivery date.

3. Significant Accounting Estimates(p) Change in Accounting Policies

Regarding accounting for impairment of goodwill, assets for business use are grouped basedon management accounting categories, and regarding the asset groups showing signs of
impairment, the requirement of impairment is determined by comparing the total amount of
undiscounted future cash flows obtained from asset groups with the book value.
As a result, if it is determined to be necessary to recognize impairment loss, the book value
is reduced to the recoverable value.
Moreover, the estimate of undiscounted future cash flows is determined on the main
assumption of the future business plan and the net realizable value of the asset groups at theend of the remaining useful life of goodwill.
If the conditions and assumptions on which the undiscounted future cash flows are
estimated are changed owing to changes in the business plan and market environment andthe future cash flows decrease, accounting for impairment may be necessary for the next
consolidated fiscal year.

Additional Information

Turkish Subsidiary — Application of International Audit Standard 29 on Financial Reporting inHyperinflationary Economies (IAS 29)
IAS 29 was applied to the Turkish subsidiary as Turkey’s cumulative inflation rate over the
past three years exceeded 100%. As a result, retained earnings increased by ¥814 million(US$5 million) at the start of the current fiscal year (FY2024). The impact of inflation on the
net monetary position for the FY2024 is presented as “Inflation accounting adjustments”
under “Non-operating expenses.”(1) Accounting for impairment of goodwill(a) Amount recorded in the consolidated financial statements of the current consolidated
fiscal year
Millions of yen

Goodwill
Impairment loss

2024

2023

¥15,607124¥14,514350

Thousands of
U.S. dollars (Note 1)

2024$103,082
822(b) Information on the contents of important accounting estimates related tothe identified items(2) Accounting for impairment of fixed assets(a) Amount recorded in the consolidated financial statements of the current consolidated
fiscal year
Millions of yen

Tangible fixed assets
Intangible fixed assets (excluding goodwill)
Impairment loss

2024

2023

¥481,508
19,531
611¥432,550
19,489418

Thousands of
U.S. dollars (Note 1)

2024$3,180,165
128,994
4,041

NIPRO Annual Report 2024

Contents

About NIPRO

Financial/Data Section
SectionFinancial/Data

Management
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section64

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(b) Information on the contents of important accounting estimates related to the identified items

As for accounting for the impairment of fixed assets, assets for business use are groupedbased on management accounting categories, and regarding the asset groups showing signsof impairment, the requirement of impairment is determined by comparing the total amount of
undiscounted future cash flows obtained from asset groups with the book value.
As a result, if it is determined to be necessary to recognize impairment loss, the book value
is reduced to the recoverable value.
The recoverable value is calculated based on the net realizable value or value in use.
Moreover, the estimate of undiscounted future cash flows is determined based on the main
assumption of the future business plan and the net realizable value of land and buildings.
We capture a sign of impairment and carefully consider the recognition and measurementof impairment losses. However, if the conditions and assumptions on which the value isestimated are changed owing to changes in the business plan and market environment andthe future cash flows decrease, accounting for impairment may be necessary for the next
consolidated fiscal year.
(c) Judgment on recognition of impairment of Nipro Vietnam Company Limited

Previous consolidated fiscal year (Mar. 31, 2023)
There is no applicable item.
Current consolidated fiscal year (Mar. 31, 2024)
i. Major assumption

In the current consolidated fiscal year, Nipro Vietnam Company Limited continuously recorded
operating losses, and a sign of impairment was found. Therefore, it is being determined
whether recognizing impairment losses is required.
Tangible fixed assets and intangible fixed assets related to the company in the consolidatedbalance sheet at the end of the current consolidated fiscal year are ¥18,985 million(US$125,392 thousand) (1.7% of the consolidated total assets).
The recognition of impairment is judged by comparing the undiscounted future cash flows
based on the business plan for Nipro Vietnam Company Limited (hereinafter referred to as the“Business Plan”) with the book value. We have determined that the acquisition of licenses andapprovals required for manufacturing and sales are considered the main assumptions forformulating the business plan.
Sales forecasts are set based on the available past results in our group and the future
market forecast.

ii. Judgment result of recognition of impairment

As the total amount of undiscounted future cash flows obtained from Nipro Vietnam Company
Limited exceeds the book value at the end of the current consolidated fiscal year, we find it
unnecessary to recognize impairment losses.
iii. Impact on the consolidated financial statements of the next consolidated fiscal year

Business plans entail uncertainty because they may be affected by the availability of licenses
and approvals required for manufacturing, sales, and changes in the market environment.
It may be necessary to record impairment losses depending on the future achievement statusof the business plan.
(3) Recoverability of deferred tax assets(a) Amount recorded in the consolidated financial statements of the current consolidated
fiscal year
Millions of yen

Deferred tax assets

2024

2023

¥13,116¥10,377

Thousands of
U.S. dollars (Note 1)

2024$86,629(b) Information on the contents of important accounting estimates related to the identified items

Regarding deferred tax assets, we recorded the future temporary deductible differences forwhich taxable income based on future profit plans can be sufficiently secured and which are
determined to be recoverable.
Considering the change of taxable income in the past and current periods, taxable income
is estimated based on the assumption of the future business plan, reasonable information,etc., at that time.
The recoverability of deferred tax assets depends on the estimate of future taxable income
based on the budget, etc. If the estimate is reduced owing to changes in the conditions orassumptions as premise for the estimate, the deferred tax assets may be reduced, and tax
expenses may be recorded in the following consolidated fiscal year.

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

65

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
4. Income Taxes
The Company and its domestic subsidiaries are subject to several taxes based on income
which, in aggregate, resulted in a normal statutory tax rate of approximately 30.6% for the
fiscal years ended March 31, 2024 and 2023.
The significant components of deferred tax assets and liabilities were as follows:
Millions of yen

Deferred tax assets
Tax loss carryforwards
Intercompany profits
Valuation loss on inventories
Allowance for bonuses to employees
Sales allowance
Loss on impairment of fixed assets
Excess of allowance for doubtful accounts over tax
allowable amounts
Net defined benefit liability
Accrued enterprise taxes
Accrued expense
Research and development costs
Other
Gross deferred tax assets
Less: Valuation allowance for the Net Operating Loss
Carry Forwards
Less: Valuation allowance for the deductible temporary
differences
Total Less: Valuation allowance (*1)
Total deferred tax assets
Offsetting deferred tax liabilities
Net deferred tax assets
Deferred tax liabilities
Unrealized gain on available-for-sale securities
Revaluation reserve for land
Revaluation reserve for fixed assets — other
Retained earnings on foreign subsidiaries
Other
Total deferred tax liabilities
Offsetting deferred tax assets
Net deferred tax assets (liabilities)

2024

2023

¥ 25,118
3,680
2,513
3,107
511
697

¥ 24,486
2,320
2,176
1,442
467
1,980

2,796

1,564
437
699
981
6,364
48,473

2,471

1,515
226
409
920
5,797
44,209Thousands of
U.S. dollars (Note 1)

2024$ 165,900
24,305
16,601
20,521
3,377
4,609
18,468
10,335
2,887
4,618
6,482
42,035
320,144(19,618)(18,869)(129,571)(6,589)(6,568)(43,521)(26,208)
22,265(9,148)
13,116(25,438)
18,771(8,394)
10,377(173,093)
147,051(60,421)86,629

4,362
783
528
1,030
4,063
10,767(9,148)¥ 1,619

3,207
783
531
903
4,243
9,670
(8,394)¥ 1,276

28,810
5,174
3,488
6,809
26,834
71,116(60,421)$ 10,695(*1) In the fiscal year ended March 31, 2024, Valuation allowance was increased by ¥769 million (US$5,079 thousand). This increase wasmainly due to a ¥960 million (US$6,340 thousand) increase in the valuation allowance for tax loss carryforwards at Infradex, Inc.
In the fiscal year ended March 31, 2023, Valuation allowance was increased by ¥438 million. The main reason of this increaseis that Valuation allowance for the Net Operating Loss Carry Forwards was increased by ¥180 million in Nipro Vietnam Company
LIMITED.

Reconciliation of the differences between the statutory tax rates and the effective income tax rates
were as follows:
2024

2023

Statutory tax rate

30.6%

30.6%

Non-taxable dividend income

(0.5)

(1.2)

Amortization of goodwill

4.5

1.5

Expenses not deductible for tax purposes

0.8

Inhabitant tax on per capita basis
Tax credits primarily for research and development costs(5.1)

Retained earnings on foreign subsidiaries

0.7

1.5

1.0

4.5

(3.7)

2.5

17.6

Unrealized Gain

(7.3)

6.4

Effect of hyperinflationary accounting

1.1

Valuation allowance

0.8

3.8

Prior tax expense

3.6

2.3

3.2

Equity in losses of affiliates

2.7

0.9

Other

36.7%

Effective income tax rate

(1.5)

64.6%

Millions of yen

2024

Within1 yearOver 2 years
within3 years

Over 3 years
within4 years

Over 4 years
within5 years

Over 5 years

Total

Net Operating Loss
Carry Forwards (*A)

Over 1 year
within2 years

¥ 152

¥ 623

¥1,029

¥ 981

¥ 972

¥ 21,359¥ 25,118

Deferred Tax Assets

(152)
—

(569)

(819)

(980)

(917)

(16,179)(19,618)

Valuation allowance

54

210

0

54

5,180

5,500 (*B)

Millions of yen

2023

Within1 yearOver 2 years
within3 years

Over 3 years
within4 years

Over 4 years
within5 years

Over 5 years

Total

Net Operating Loss
Carry Forwards (*A)

Over 1 year
within2 years

¥ 288

¥ 574

¥1,289¥1,160¥ 1,122¥ 20,050¥ 24,486

Deferred Tax Assets

(288)
—

(515)

(923)

(909)

(1,011)(15,220)(18,869)

Valuation allowance

58

365

250

111

4,830

5,616 (*B)

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section66

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
6. Investment Securities

Thousands of U.S. dollars (Note 1)

2024

Within1 yearOver 2 years
within3 years

Over 3 years
within4 years

Over 4 years
within5 years

Over 5 years

Net Operating Loss
Carry Forwards (*A)

Over 1 year
within2 years$ 1,004$ 4,120$ 6,802$ 6,482$ 6,419$ 141,070 $ 165,900

Deferred Tax Assets(1,004)—(3,760)(5,409)(6,477)(6,061)(106,857)

Valuation allowance

359

1,392

4

358

34,213

Total(129,571)

36,328 (*B)(*A) Each Net Operating Loss Carry Forwards amount is multiplied by Statutory tax rate.
(*B) Deferred Tax Assets for Net Operating Loss Carry Forwards (multiplied by Statutory tax rate) for the years ended March 31, 2024
and 2023 were ¥25,118 million (US$165,900 thousand) and ¥24,486 million, respectively. Those Deferred Tax Assets weremainly recognized for the balance of Net Operating Loss Carry Forwards (multiplied by Statutory tax rate) in Nipro Holding
Americas, Inc. As a result of tax scheduling, Valuation allowance for those Net Operating Loss Carry Forwards was not recognized
due to assumption that this amount is collectable.

5. Pledged Assets

2024
Machinery and equipment

Land

Other

Total

Millions of yen¥5,252147¥3,208
1,571

2,981
663

¥9,043

2023

3,112
641

¥8,534

The above assets were pledged against the following liabilities:
2024

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024

971

19,6904,379$59,731

¥ 699

¥ 695

$ 4,620

Long-term debt (excluding current portion)

6,733

6,136

44,473

Total

Marketable:

1,562¥8,995893¥7,724

10,319$59,414

Thousands of
U.S. dollars (Note 1)

2024

2023

Marketable equity securities¥23,272¥24,593$153,702

Subtotal

23,272

24,593

153,702

Investments in unconsolidated subsidiaries andaffiliates accounted for by equity method

8,350

10,13855,150¥32,945¥37,220$217,590—

Investment trust funds and other

—

1,322

Non-marketable securities

2,489

—

8,736

The carrying amounts and aggregate fair values of marketable securities for investments as ofMarch 31, 2024 and 2023 were as follows:
Millions of yen

Available-for-sale securities

2024

Cost

Unrealized gain

Unrealized loss

Fair Value

Equity securities¥9,466¥13,938¥132¥23,272

Total¥9,466¥13,938¥132¥23,272

Debt securities and other

—

—

—

—

Millions of yen

Thousands of
U.S. dollars (Note 1)

2024

Millions of yen

Non-current:$34,690

Short-term debt

Current portion of long-term debt

2024

Total

The following assets were pledged as collateral:

Buildings and structures

Investment securities as of March 31, 2024 and 2023 consisted of the following:

Available-for-sale securities

2023

Cost

Unrealized gain

Unrealized loss

Fair Value

Equity securities¥14,324¥10,638¥369¥24,593

Total¥14,324¥10,638¥369¥24,593

Debt securities and other

—

—

—

—

Thousands of U.S. dollars (Note 1)

Available-for-sale securities

2024

Cost

Unrealized gain

Unrealized loss

Fair Value

Equity securities$62,520$92,058$875$153,702

Total$62,520$92,058$875$153,702

Debt securities and other

—

—

—

—

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
SectionConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

67
Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
Proceeds from sales of securities and gross realized gains or losses on those sales for the
fiscal years ended March 31, 2024 and 2023 were as follows:
2024
Proceeds

Gains on sales

Losses on sales

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024¥8,541¥5,020$56,410

0

7

0

3,682

1,954

24,321

No impairment loss was applied to securities in the fiscal year ended March 31, 2024 and 2023.
In case fair value for the marketable equity security fell by over 50% from the acquisition
cost, the stock impairment is applied unless there is a reasonable disproval, the Company
records an impairment loss. In case fair value for the marketable equity security fell by 30% to50%, impairment is applied except when it is expected to recover.

7. Financial Instruments(1) Circumstances on financial instruments(a) Policy for financial instruments

The Company and its consolidated subsidiaries manage the temporary surplus funds bydeposits with banks that have a high level of safety. Based on capital investment planning andfinancing planning, the Company and its consolidated subsidiaries raise funds for business
operation with bank loans, commercial paper, corporate bonds, and issuing convertible bondwith stock acquisition rights.
The Company and its consolidated subsidiaries enter into derivative transactions for the
purpose of reducing funding costs and hedging their exposures to foreign exchange
fluctuations and interest rate fluctuations, but not for speculative purposes.

(b) Details and risk of financial instruments and its risk management

Receivables such as trade notes and accounts receivable are exposed to customer’s credit
risk. Receivables denominated in foreign currencies are exposed to the market risk offluctuation in foreign currency exchange rates.
In order to reduce the customer’s risk, the Company monitors the dues and balances bycustomer in accordance with the Company’s credit administration regulations.
Investment securities are exposed to market fluctuation risk, but mainly consist of equity of
the companies which conduct business with the Company. The Company periodically reviews
the market price of such securities.
Payables such as trade notes, accounts payable and accounts payable other are due within
1 year.
Payables denominated in foreign currency are exposed to the risk of fluctuation in foreign
currency exchange rates.
Short-term loans payable are mainly borrowed to raise operating capital and long-termloans payable are mainly borrowed to make capital expenditures. A part of long-term loans
with the floating interest rate has the risk of interest rate fluctuation, but the Company and its
consolidated subsidiaries use interest rate swaps to solidify the interest rate. For some of theloans denominated in foreign currency, the Company and its consolidated subsidiaries use
currency swaps to hedge the currency fluctuation risk.
Corporate bonds and convertible bonds are mainly issued to raise the funds for theretirement of bonds.
Lease obligations are mainly for capital expenditures, free from interest-rate risk because
the interest rate is fixed.
Payables, loans and bonds are exposed to liquidity risk, but the Company and its
consolidated subsidiaries manage the risk by establishing cash planning.
Regarding derivatives, the Company enters into forward exchange contracts to hedge
against the risk of fluctuations in foreign currency exchange rates associated with tradereceivables and payables denominated in foreign currencies, interest rate swaps to hedge
against the risk of fluctuations in interest rates associated with loans payable, and currency
swaps to hedge against the risk of foreign exchange rate fluctuations. For more information on
the use of hedge accounting, including hedging instruments, hedged items, the hedging
policy, and the method for assessment of hedge effectiveness, please refer to “2. Summary of
Significant Accounting Policies” (m) Hedge Accounting.
As the Company manages its exposure to credit risk by limiting its funding to high-credit
rating financial institutions, the Company recognizes that the exposure to credit risk isextremely low.
The Company executes and manages derivative transactions under the corporate derivative
management policy, which prescribes the authority and limitations on derivative transactions.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section68

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(c) Supplemental information on fair values of financial instruments

Because variable factors are counted in the estimation, the estimated values may vary byadopting different assumptions.
With respect to the contract amounts related to derivative transactions in Note 8, theamounts do not reflect market risks to derivative transactions.
(2) Fair values of financial instruments
The book values, fair values and the differences between them as of March 31, 2024 and 2023
were as follows (Financial instruments for which the fair value is extremely difficult to determine
are not included as described in remark 1.):Millions of yen

Investment securities
Assets total

Corporate bonds

Convertible bond-type bonds with subscription rights
to shares

Book value

2024

Fair value

Difference¥ 23,272¥¥ 23,272¥ 23,272

82,00080,373¥ 23,272¥——(1,626)30,15031,065915

Long-term debt (excluding current portion)

302,819

298,995(3,824)

Liabilities total¥440,282¥433,406¥(6,875)

Lease obligations (excluding current portion)
Derivatives (*1)

25,312¥(635)

22,973¥(635)

Investment securities
Assets total

Corporate bonds

Convertible bond-type bonds with subscription rights
to shares

2023

¥

—

Fair value

Difference¥ 24,593¥¥ 24,593¥ 24,593

76,70075,469¥ 24,593¥——(1,230)30,21030,030(180)

Long-term debt (excluding current portion)

316,555

313,313(3,242)

Liabilities total¥448,731¥442,838¥(5,893)

Lease obligations (excluding current portion)
Derivatives (*1)

25,265¥(27)

24,025¥(27)

Investment securities
Assets total

Corporate bonds

Convertible bond-type bonds with subscription rights
to shares(1,240)¥—Book value

2024

Fair value$ 153,702$ 153,702

541,575

530,831$ 153,702$ 153,702

Difference

$

$

—

—

(10,744)

199,128

205,171

6,043

Long-term debt (excluding current portion)

1,999,996

1,974,740(25,256)

Liabilities total$2,907,881$2,862,471$(45,410)

Lease obligations (excluding current portion)
Derivatives (*1)

167,181$(4,196)

151,728$(4,196)(15,452)$—(*1) The amount represents the net amount of assets (liabilities).
Cash is not disclosed. Deposits out of “Cash and deposits”, “Trade notes and accounts receivable”, “Trade notes and accounts
payable”, “Short-term debt”, “Commercial paper”, “Current portion of corporate bonds”, “Current portion of lease obligations”
and “Notes payable-facilities” are not disclosed because their maturities are short and the carrying values approximate fairvalue.

Remark 1

Financial instruments for which the fair value is extremely difficult to determine(2,339)Millions of yen
Book value

Thousands of U.S. dollars (Note 1)

2024
Unlisted equity securities

Millions of yen¥8,951

2023¥12,175

Thousands of
U.S. dollars (Note 1)

2024$59,118

They are not included in investment securities because there were no quoted market prices available and it is extremely difficult todetermine the fair value as of March 31, 2024 and 2023.

Remark 2

Planned redemption amounts after the balance sheet date for monetary receivables
with maturity dates

Planned redemption amounts after the balance sheet date for monetary receivables withmaturity dates at March 31, 2024 and 2023 were as follows:
2024

Cash and deposits

Trade notes and accounts receivable

Millions of yen

Within 1 year

¥ 99,667

160,240

2023

Within 1 year

¥ 89,678

160,271

Thousands of
U.S. dollars (Note 1)

2024

Within 1 year

$ 658,265
1,058,320

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section69

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
Remark 3

Planned repayment amounts after the balance sheet date for monetary payables
with maturity dates

Thousands of U.S. dollars (Note 1)

Planned repayment amounts after the balance sheet date for monetary payables with maturity
dates at March 31, 2024 and 2023 were as follows:
Millions of yen

Short-term bank debt
Commercial paper

Current portion of corporate
bonds
Current portion of leaseobligations
Corporate bonds
Convertible bond-typebonds with subscription
rights to shares
Long-term debt
(excluding current portion)
Lease obligations(excluding current portion)
Total

Commercial paper

2024

Within 1 year

Over 1 year
andwithin 2 years

Over 2 years
andwithin 3 years

Over 3 years
andwithin 4 years

Over 4 years
andwithin 5 years

20,000————¥160,367

¥

—

¥

—

¥

—

¥

—

Over 5 years

¥

—

—

4,700

—

—

—

—

—

4,748

—

—

—

—

—

—

1,000

1,000

—

20,00060,000——30,000————69,041

61,02473,346

59,68939,717

—

3,743

2,673

1,870

1,521

15,503¥189,816¥73,785¥94,698¥75,216¥81,211¥115,220

Millions of yen

Short-term bank debt
Commercial paper

Current portion of corporate
bonds
Current portion of leaseobligations
Corporate bonds
Convertible bond-typebonds with subscription
rights to shares
Long-term debt
(excluding current portion)
Lease obligations(excluding current portion)
Total

2023

Within 1 year

Over 1 year
andwithin 2 years

Over 2 years
andwithin 3 years

Over 3 years
andwithin 4 years

Over 4 years
andwithin 5 years

10,000————¥130,570

¥

—

¥

—

¥

Short-term bank debt

—

¥

—

Over 5 years

¥

—

—

2,000

—

—

—

—

—

4,440

—

—

—

—

—

—

4,700

1,000

1,000

—

70,000———30,000———78,92557,72349,38456,85073,672

—

3,647

2,927

1,647

1,811

15,232¥147,010¥87,272¥61,651¥82,032¥58,661¥158,904

Current portion of corporate
bonds
Current portion of leaseobligations
Corporate bonds
Convertible bond-typebonds with subscription
rights to shares
Long-term debt
(excluding current portion)
Lease obligations(excluding current portion)
Total

2024

Within 1 year

Over 1 year
andwithin 2 years

Over 2 years
andwithin 3 years

Over 3 years
andwithin 4 years

Over 4 years
andwithin 5 years

Over 5 years

132,091

—

—

—

—

—

$1,059,161

31,041

$

—

—

$

—

$

—

—

—

$

—

—

$

—

—

31,361

—

—

—

—

—

—

6,604

6,604

—

132,091

396,275——

198,137

—

—

—

—

455,990403,044484,421394,224

262,316—

24,726

17,657

12,351

10,051

102,394$1,253,656$487,321$625,443$496,772$536,367$760,986(3) Breakdown of fair values of financial instruments by level
The fair values of financial instruments are classified into the following three levels based on
the observability and materiality of the inputs used to calculate fair value.
Level 1: Fair value calculated based on quoted market prices for assets or liabilities for whichsuch fair value in available in active markets among the inputs used in the calculationof observable fair value.
Level 2: Fair value calculated using inputs other than Level 1 inputs to the calculation ofobservable fair value.
Level 3: Fair value calculated using inputs that are unobservable.
When multiple inputs that have a significant effect on the calculation of fair value are used,
fair value is classified into the level with the lowest priority in the calculation of fair value
among the levels to which each of those inputs belongs.

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

70

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(a) Financial instruments measured at fair value on the consolidated balance sheet(b) Financial instruments other than those measured at fair value on the consolidatedbalance sheet

Millions of yen

2024

Level 1

Investment securities
Other securities
StocksTotal assets

Derivatives transactions

Level 2

¥23,272¥¥23,272

Currency-relatedInterest-relatedInterest rate and currency related
Total liabilities

¥

—

¥

—

¥

Fair value

Level 3

—

¥—

—

¥—

¥(667)

—

¥—

—

—

Millions of yen

—

31

—

¥(635)

¥—

2024

Total

¥23,272

Corporate bonds¥23,272

Convertible bond-type bonds with subscription
rights to shares

¥

(667)

Lease obligations (excluding current portion)

¥

(635)

—

31

Level 1¥—

Level 2

¥ 80,373

2023

Level 1

Investment securities
Other securities
StocksTotal assets

Derivatives transactions

Level 2

Level 3

¥ —¥—¥24,593

¥

—

¥(29)

¥—

¥

—

(5)

—

¥24,593

Currency-relatedInterest-relatedInterest rate and currency related—¥

Total liabilities

¥ —

¥—

7

—

—

¥(27)

¥—

¥24,593

31,065—31,065298,995—

298,995

Total liabilities¥—¥433,406¥—¥433,406—

22,973

Investment securities
Other securities
StocksTotal assets

Derivatives transactions
Currency-relatedInterest-relatedInterest rate and currency related
Total liabilities

Level 2

Fair value

Level 3

Total

$

—

$—

$153,702$—$(4,407)$—$ (4,407)

—

211

—

211

$

—

—

$

—

—

$(4,196)

$—

—

$—

Level 2

¥ 75,469$153,702—$ (4,196)

Level 3¥—Total

¥ 75,469

30,030—30,030Long-term debt (excluding current portion)—

313,313—313,313

Total liabilities¥—¥442,838¥—¥442,838

Lease obligations (excluding current portion)—

24,025—24,025

Thousands of U.S. dollars (Note 1)

2024

Level 1

Level 2

Fair value$—$ 530,831—

Long-term debt (excluding current portion)
Total liabilities

Corporate bonds

Lease obligations (excluding current portion)$153,702$153,702¥—

Fair value—

Convertible bond-type bonds with subscription
rights to shares

2024

Level 1

Level 1

(5)

Thousands of U.S. dollars (Note 1)

22,973

2023

7

(27)

—

Millions of yen

(29)

¥

Total

¥ 80,373—

Convertible bond-type bonds with subscription
rights to shares¥24,593¥——

Corporate bonds

Total

Level 3Long-term debt (excluding current portion)

Millions of yen
Fair value

Fair value

Level 3Total$—

$ 530,831

205,171—

205,171—

1,974,741—

1,974,741$—$2,862,472$—$2,862,472—

151,729—

151,729NIPRO Annual Report 2024

Financial/Data Section
SectionFinancial/Data

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section71

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(Note) Explanation of valuation techniques used and inputs related to the calculation offair value• Investment securities
The fair value of listed stocks is estimated using quoted market prices. Since listed stocks
are traded in active markets, their fair value is classified as Level 1.
• Derivative transactions
Fair value is calculated based on prices, etc., provided by financial institutions with which theCompany has transactions, and is classified as Level 2.
The fair value of interest rate swaps that qualify for special treatment is included in the fairvalue of the relevant long-term borrowings because they are accounted for as an integral
part of long-term borrowings that are hedged.
• Corporate bonds and Long-term debt
The fair value of corporate bonds and Long-term debt is calculated based on the present
value of the total principal and interest discounted using an appropriate index such as theyield on government bonds plus an interest rate that takes credit risk into account, and isclassified as Level 2.
• Convertible bond-type bonds with subscription rights to shares
The fair value of convertible bond with stock acquisition rights is calculated based on theprice, etc., provided by the financial institutions with which the Company has transactions
and is classified as Level 2.
• Lease obligations
The fair value of lease obligations is calculated based on the present value of the principal
and interest discounted at an interest rate that takes into account the remaining period of
the obligation and credit risk, and is classified as Level 2.

8. Derivatives
The Company and its consolidated subsidiaries held the following derivatives contracts
outstanding at March 31, 2024 and 2023.
(1) Derivatives for which hedge accounting has not been applied

Currency-related

Millions of yen

2024

Type of derivative

Transaction other thanmarket transaction

Non-Deliverable Forward

Currency swaption
Currency swap

Contract amount¥ 3,534
15,660773

Over 1 year out-ofcontract amount

Fair value¥—¥ (12)

—

(17)

—

(467)

Millions of yen

2023

Type of derivative

Transaction other thanmarket transaction

Non-Deliverable Forward
Currency swaption
Currency swap

Contract amount¥2,9452,381
463

Over 1 year out-ofcontract amount

Fair value¥—¥ (41)

—

9

—

118

Thousands of U.S. dollars (Note 1)

2024

Type of derivative

Transaction other thanmarket transaction

Non-Deliverable Forward

Currency swaption

Currency swap

Contract amountOver 1 year out-ofcontract amount

103,433—$ 23,341
5,105

$—
—

Fair value

$

(82)

(3,087)(118)

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

72

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(2) Derivatives for which hedge accounting has been applied

Millions of yen(a) Currency-related

2023

Millions of yen

Method of hedge accounting

2024

Method ofhedge accounting

Principle method

Type of derivative

Currency swap

Non-Deliverable Forward

Principal hedge item

Long-term debt

Long-term loans

Contract
amountOver 1 year
out-of-contract
amountFair value¥2,758¥—¥ (29)¥ 558¥—¥(139)

Fair value is based on the information provided by a financial institution at the end of the fiscal year.

Principle method

Type of derivative

Principal hedge item

Interest rate swap Long-term debt

Exceptional accounting
Interest rate swap Long-term debt
method for interest rate swap

Principle method

Type of derivative

Currency swap

Principal hedge item

Long-term debt

¥532

Over 1 year
out-of-contract
amount¥—¥(116)

Thousands of U.S. dollars (Note 1)

2024

Principle method

Type of derivative

Currency swap

Non-Deliverable Forward

Principal hedge item

Long-term debt

Long-term loans

Contract
amountOver 1 year
out-of-contract
amountFair value$18,218$—$(196)$ 3,685$—$(922)

Fair value is based on the information provided by a financial institution at the end of the fiscal year.

(b) Interest-related

Method of hedge accounting

Type of derivative

Principal hedge item

Exceptional accounting
Interest rate swap Long-term debt
method for interest rate swap

¥ 7

15,00015,000(*1)

537Over 1 year
out-of-contract
amountFair value$99,068$99,068(*1)

Millions of yen

2024

Method of hedge accounting

Principle method

Type of derivative

Interest rate andcurrency swap

Principal hedge item

Long-term debt

Contract
amount¥797

Principal hedge item

Exceptional accounting
Interest rate swap Long-term debt
method for interest rate swap

Over 1 year
out-of-contract
amount¥797

Fair value¥31

Millions of yen

Millions of yen

Type of derivative¥

Contract
amount(c) Interest rate and currency-related

2023

2024

Method of hedge accounting

—

¥

2024

Fair value

Fair value is based on the information provided by a financial institution at the end of the fiscal year.

Method of hedge
accounting

Fair value

Thousands of U.S. dollars (Note 1)

2023

Contract
amountOver 1 year
out-of-contract
amount(*1) The fair value of the interest rate swap to which the exceptional accounting method is applied and the fair value of forward
foreign exchange contract, etc., to which the allocation method is applied are included in the fair value of long-term loans in Note
7. “Financial Instruments” because such interest rate swap and forward foreign exchange contract, etc., are accounted for as asingle item with the corresponding long-term loans.

Millions of yen

Method ofhedge accounting

Contract
amountContract
amountOver 1 year
out-of-contract
amountFair value¥15,000¥15,000(*1)

Method of hedge accounting

Principle method

Type of derivative

Interest rate andcurrency swap

Principal hedge item

Long-term debt

Contract
amount¥760

Over 1 year
out-of-contract
amount¥760

Fair value¥(5)

Thousands of U.S. dollars (Note 1)

2024

Method of hedge accounting

Principle method

Type of derivative

Interest rate andcurrency swap

Principal hedge item

Long-term debt

Contract
amountOver 1 year
out-of-contract
amountFair value$5,264$5,264$205

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section73

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
9. Short-Term Debt and Long-Term Debt

The aggregate annual maturities of long-term debt outstanding at March 31, 2024 wereas follows:

Short-Term Debt and Long-Term Debt comprised the following:

Millions of yen

Thousands of
U.S. dollars (Note 1)

Payment term

2024

¥ 87,327$ 576,763—

2026

61,024

Millions of yen

Short-term debt

Current portion of long-term debt

Current portion of lease obligations

2024

2024

Balance at the
beginning ofcurrent period

Balance at theend ofcurrent period

Averageinterest rate

65,05887,3270.499%¥ 65,511

4,440¥ 73,039

4,748

3.121%———

Long-term debt (excluding current portion)

316,555

302,8190.608%

Other interest-bearing liabilities
Commercial papers (Within 1 year)—

2025–2038

10,00020,0000.495%

—

2,536

2,533

0.243%

Lease obligations (excluding current portion)

Long-term guarantee deposits from agents

Total

25,265¥489,368

25,312¥515,781—

2025–2034——

69,041

2025

172,7552027 and thereafter¥390,147

Total

Short-term debt

Current portion of long-term debt

Current portion of lease obligations

Long-term debt (excluding current portion)

Lease obligations (excluding current portion)
Other interest-bearing liabilities
Commercial papers (Within 1 year)

Long-term guarantee deposits from agents
Total

Balance at the
beginning ofcurrent period

Balance at theend ofcurrent period

Averageinterest rate

Corporate bonds comprised the following:
2024

576,7630.499%$ 432,673$ 482,398

29,326

31,361

429,687

3.121%—

2,090,720

1,999,996

0.608%

66,045132,091

0.495%

16,7310.243%

166,870

16,750$3,232,074

167,181$3,406,524——

Payment term

—

—

—

2025–2034

2025–2038——

Average interest rate is the weighted average interest rate on the balance of borrowings, etc. at the end of the fiscal year.
Average interest rate for lease obligations is not stated because lease obligations are recorded on the consolidated balance sheetsat the amount before deducting the amount equivalent to interest included in the total lease payments.

455,990403,044

1,140,974$2,576,758

As is customary in Japan, long-term and short-term bank loans are made under general agreements which provide that additional
securities and guarantees for present and future indebtedness will be given under certain circumstances at the request of the bank.
In addition, the agreements provide that the bank has the right to offset cash deposits against any long-term and short-termbank loan that becomes due, and in case of default and certain other specified events, against all other loans payable to the bank.

Thousands of U.S. dollars (Note 1)

2024

2024

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024

3,000

$ 19,813

50,00050,000330,2290.674% unsecured bonds due 2028

10,00010,00066,0450.014%–0.025% unsecured bonds due from 2024 to2027 (*1)
1.088% unsecured bonds with subordinated specials
due 2028

3,700

5,700

24,436

10,000—66,045¥116,850¥108,910$771,745

0.25% unsecured bonds due 2025
0% convertible bond due 2026

1.6% unsecured bonds with subordinated specials
due 2055
0.44% unsecured bonds due 2029

Total

¥

3,000

30,15010,000¥30,21010,000199,128

66,045(*1) This is the total amount of the bonds Goodman Co., Ltd. issued.
In March 2020, the Company issued ¥3,000 million (US$19,813 thousand) of 0.25% unsecured bonds due 2025.
In October 2018, the Company issued ¥10,000 million (US$66,045 thousand) of 0.674% unsecured bonds due 2028.
In October 2019, the Company issued ¥10,000 million (US$66,045 thousand) of 0.44% unsecured bonds due 2029.
In September 2020, the Company issued ¥50,000 million (US$330,229 thousand) of 1.6% unsecured bonds due 2055.
In September 2021, the Company issued ¥30,270 million (US$199,920 thousand) of 0% convertible bonds due 2026.
From February 2017 to February 2023, Goodman Co., Ltd. issued ¥7,900 million (US$52,176 thousand) of 0.014% and 0.120%
unsecured bonds due from 2024 to 2027.
In October 2023, the Company issued ¥10,000 million (US$66,045 thousand) of 1.088% unsecured bonds due 2028.

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

74

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
10. Accrued Pension and Severance Liabilities
The Company and certain consolidated subsidiaries have defined benefit pension plans andunfunded retirement benefit plans, and defined contribution pension plans for employees.
Certain consolidated subsidiaries have recorded liabilities for retirement benefit and assets
for a retirement benefit based on the simplified method.
(a) The reconciliation of beginning and ending balances of the benefit obligation (excluding thedefined benefit plans applied based on the simplified method) is as follows:
2024
Service cost

Interest cost

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024¥17,731¥18,633$117,110

256

176

1,696

1,654

1,608

10,929Actuarial gains and losses(302)(1,700)(1,996)

Benefit payments

(413)

(735)

(2,729)¥17,731$126,257

Prior service cost

Other (foreign currency translation adjustments, etc.)

Obligation at March 31

0

188¥19,116

(467)
216

2024
Expected return on plan assets

Actuarial gains and losses

Company contribution

Benefit payments

Other (foreign currency translation adjustments, etc.)

Fair value of plan assets at March 31

Millions of yen

2023

1,248

Thousands of
U.S. dollars (Note 1)

2024$83,169¥12,592¥12,726

317

(624)

(276)

(482)

(1,827)¥13,562¥12,592$89,574

210

748

(29)

205

734
33

Retirement payments
Decrease due to charge in measurement of
retirement benefit obligations from the simplified
method to the principle method
Other (foreign currency translation adjustments, etc.)

Liabilities for retirement benefit at March 31

1,390

2,094

4,941

(193)

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024

¥24

¥20

$164

(1)

(1)

(6)

—

—

3

21

2

—

—
—

2

¥27

$179

¥24

(d) The reconciliation of ending balance of the benefit obligation and the fair value of the plan
assets, and liabilities and assets for retirement benefit are as follows:

0(b) The reconciliation of beginning and ending balances of the fair value of the plan assets(excluding the defined benefit plans applied based on the simplified method) is as follows:

Fair value of plan assets at April 1

2024
Liabilities for retirement benefit at April 1
Retirement benefit cost

(1) Defined Benefit Plans

Obligation at April 1(c) The reconciliation of beginning and ending balances of liabilities for retirement benefit
calculated by the simplified method is as follows:

2024
Benefit obligation on funded scheme
Plan assets

Benefit obligations on unfunded scheme

Net liabilities in the consolidated balance sheet
Net defined benefit liability

Retirement benefit asset

Net liabilities in the consolidated balance sheet

Millions of yen

2023¥ 15,811¥ 14,872

2,248

2,279

(13,562)(12,592)

Thousands of
U.S. dollars (Note 1)

2024$104,426(89,574)
14,8522,884

22,011

5,675

5,164

37,484¥ 5,581¥ 5,164

3,332
5,581

(*) Including the defined benefit plans applied based on the simplified method

(94)

5,164
—

36,863(621)$ 36,863

NIPRO Annual Report 2024

Contents

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section75

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements(e) The breakdown of net pension and severance costs is as follows:
2024

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024¥1,654¥1,608$10,929

Expected return on plan assets

(210)

(205)

(1,390)

Amortization of prior service cost

(132)

(168)

(876)

3

2

Service cost

Interest cost

Amortization of actuarial gains and losses
Retirement benefit cost calculated by the simplified
method
Other
Total

256

176

(182)

(2)

¥1,386(2)

35¥1,4462023(1,205)

2

21
(18)

$ 9,156

Thousands of
U.S. dollars (Note 1)

2024$ (876)

Total

¥ 330

¥1,373$2,181

3,058(g) Remeasurements of defined benefit plans (Accumulated Other Comprehensive Income)The breakdown of the items recorded in adjustments to defined benefit plans is as follows:
2024

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024

Unrecognized prior service cost

¥ 348

¥ 452

$ 2,302

Total¥2,229¥1,899$14,724

Unrecognized actuarial losses

1,880

1,446

32

Equities

19

6

General account

20

21

Total

100%

100%

18

Others23(*) Including the defined benefit plans applied based on the simplified method

2. Method of determining the expected rate of return on plan assets

¥ 467
906

31%

Short-term funds¥(132)
463

2023

28%

Prior service cost

Actuarial gains and losses

2024
Bonds

The breakdown of the items recorded in adjustments to defined benefit plans is as follows:
2024

Plan assets as of March 31, 2025 and 2024 consist of the following:

1,696(f) Remeasurements of defined benefit plans (Other Comprehensive Income)Millions of yen(h) Items concerning the plan assets
1. The breakdown of the plan assets

12,421The long-term expected rate of return is determined considering the current and future
allocation of plan assets, and the current and expected long-term rate of return from thediverse assets composing the plan assets.
(i) Basis of actuarial calculation

The assumptions used in actuarial calculations for the fiscal years ended March 31, 2024 and2023 are as follows:
2024

2023

Discount rate

Primarily 1.4%

Primarily 0.6%

Expected rate of salary increase

Primarily 6.6%

Primarily 6.6%

Primarily 1.5%

Expected long-term rate of returnPrimarily 1.5%

(2) Defined Contribution Retirement Plans
The amounts of necessary contributions to defined contribution retirement plans within the
Company and consolidated subsidiaries were ¥949 million (US$6,268 thousand) and ¥795
million for the fiscal years ended March 2024 and 2023, respectively.

11. Commitments and Contingent Liabilities
The Company and its consolidated subsidiaries had the following commitments and contingent
liabilities:
2024
Export drafts discounted
Total

¥20

¥20

Millions of yen

2023
¥—

¥—

Thousands of
U.S. dollars (Note 1)

2024

$135

$135

NIPRO Annual Report 2024

Financial/Data Section
SectionFinancial/Data

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
SectionConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

76
Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
12. Net Assets

13. Segment Information

The significant provisions in the Corporate Law of Japan (the “Corporate Law”) that influencefinancial and accounting matters are summarized below:

1. Outline of Reportable Operating Segments
In accordance with ASBJ Statement No.17 “The Revised Accounting Standard for Disclosuresof Segments of an Enterprise and Related Information”, the reportable operating segments arecomponents of an entity for which separate financial information is available and suchinformation is evaluated regularly by the Board of Directors in deciding how to allocate
management resources and in assessing performance.
The Company currently operates its business on a stand-alone basis with the divisionalorganization and evaluates the performance of sales and manufacturing of each division
regardless of their products. Accordingly, the Company has three reportable operating
business segments according to the divisions (Medical-Related business, PharmaceuticalRelated business and PharmaPackaging business), which are divided mainly by their products.

(a) Dividends
Under the Corporate Law, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon a resolution at the shareholders’ meeting. For
companies that meet certain criteria such as (1) having a board of directors, (2) having
independent auditors, (3) having a board of corporate auditors, and (4) the service period of
the directors is prescribed as one year rather than the normal term of two years by its articles
of incorporation, the Board of Directors may declare dividends (except for dividends in kind)
if the company has prescribed so in its articles of incorporation. The Company’s present
system meets the first three criteria but the two-year service period of the directors does notmeet the fourth criterion.
Interim dividends may also be paid once a year by the resolution of the Board of Directors
if the articles of incorporation of the company stipulate so. The Company’s articles ofincorporation contain such a stipulation, and it pays interim dividends semi-annually by the
resolution of the Board of Directors.
The Corporate Law provides certain limitations on the amounts available for dividends or
the purchase of treasury stock.
(b) Increases / Decreases and Transfer of Common Stock, Reserve and Surplus
The Corporate Law requires that an amount equal to 10% of dividends must be appropriatedas legal reserve (a component of retained earnings) or as additional paid-in capital (acomponent of capital surplus) depending on the equity account charged upon the payment ofsuch dividends until the total of aggregate amount of legal reserve and additional paid-in
capital equals 25% of the common stock.
Under the Corporate Law, the total amount of additional paid-in capital and legal reserve
may be reversed without limitation.
The Corporate Law also provides that common stock, legal reserve, additional paid-in
capital, other capital surplus and retained earnings can be transferred among the accounts
under certain conditions by the resolution of the shareholders’ meeting.
The Company’s legal reserve, which is included in retained earnings, amounted to ¥6,559
million (US$43,320 thousand) as of March 31, 2024, and its additional paid-in capital, whichis included in capital surplus, amounted to ¥635 million (US$4,195 thousand) as of March
31, 2024.

*Medical-Related

The domestic division sells injection and infusion products, artificial organ products, highly
functional products, dialysis products, diabetic products and pharmaceuticals such as genericand kit products. In the Global business division, head office plays the central role, placing
overseas sales and manufacturing bases for medical equipment and sales injection andinfusion products, artificial organ products and diabetic products.
*Pharmaceutical-Related

The pharmaceutical division sells pharmaceutical products with containers for combination
products(injectable kit products) consigned by other pharmaceutical companies. Domestic
subsidiaries sell and manufacture injectable drugs, oral drugs and combination products.
*PharmaPackaging

The PharmaPackaging division sells glass for vials and ampoules for medical use, glass forthermos bottles, glass for lighting and containers for combination products (injectable kit
products). Overseas subsidiaries manufacture and sell glass tubing and glass mainly forsyringes, vials and ampoules for medical use.

NIPRO Annual Report 2024

Contents

Financial/Data Section
SectionFinancial/Data

About NIPROManagement
Message

Review ofOperations

Financial Review
Ten-Year Summary

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section77

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
Business segment information for the years ended March 31, 2024 and 2023 was as follows:

Millions of yen

2024

Reportable segment

Other
(*1)

Medical-Related

Pharmaceutical-Related

PharmaPackaging

Total

Outside¥453,613¥ 74,320¥ 58,035¥ 585,969

¥

Total

¥459,325¥129,607¥ 64,286¥ 653,219¥

Net sales:Intersegment
Operating income (loss)

Identifiable assets

Other items

5,711

55,287¥ 42,321¥

663,626

4,432

243,189

—

—

6,250

¥

2,452

110,747—

67,249¥49,206¥

1,017,563

Consolidated
financial statements

816¥ 586,785¥—¥ 586,785

4,963¥ 658,182¥ (71,397)¥ 586,785

4,147
80

234,306—

Adjustment
(*2)

Total

—

71,397¥49,2871,251,870—(71,397)¥ (26,952)(142,048)——¥

22,335

1,109,821—

Depreciation and amortization

29,117

15,032

6,376

50,526407

50,933

5,097

56,030

Increase in tangible and intangible fixed assets

48,67631,872

14,54595,094739

95,834

7,793

103,628

Amortization of goodwill

2,662

10

169

2,842

—

2,842

—

2,842

Thousands of U.S. dollars (Note 1)

2024

Reportable segment

Other
(*1)

Medical-Related

Pharmaceutical-Related

PharmaPackaging

Total

Outside$2,995,929$ 490,855$383,299$3,870,084

$

Total

$3,033,652$ 856,004$424,582$4,314,239$

Net sales:Intersegment

Operating income (loss)

Identifiable assets

Other items

37,723$ 279,519
4,382,978—365,148$

41,283444,155

29,276$ 16,194$ 324,990———

1,606,164

731,4396,720,582$

Adjustment
(*2)

Total

Consolidated
financial statements

5,391$3,875,475$—$3,875,475

32,783$4,347,023$(471,547)$3,875,475

27,392471,547(471,547)530$ 325,521$(178,006)

—

—

—

1,547,498

8,268,081(938,172)—$ 147,514
7,329,908—

Depreciation and amortization

192,305

99,283

42,115

333,704

2,689

336,394

33,666370,060

Increase in tangible and intangible fixed assets

321,489

210,507

96,064

628,061

4,886

632,947

51,474684,422

Amortization of goodwill

17,58272

1,117

18,772—

18,772—

18,772NIPRO Annual Report 2024

Contents

Financial/Data Section
SectionFinancial/Data

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section78

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
Millions of yen

2023

Reportable segment

Other
(*1)

Medical-Related

Pharmaceutical-Related

PharmaPackaging

Total

Outside¥419,957¥ 72,734¥51,754¥544,446¥

Total¥426,069¥ 95,227¥57,716¥579,013¥

Identifiable assets

618,581

221,633

97,150937,366

Net sales:Intersegment

Operating income (loss)
Other items

6,111¥ 38,599—

22,492

¥

5,615
—

5,962

¥ 2,739—

34,566¥ 46,954—¥

Adjustment
(*2)

Total

Consolidated
financial statements

752¥ 545,199¥—¥ 545,199

4,444¥ 583,458¥ (38,259)¥ 545,199

201,699

1,139,065(111,666)

1,027,399

3,692

257

—

38,259¥47,211—(38,259)¥ (29,482)——¥

17,729—Depreciation and amortization

22,466

13,366

5,476

41,310339

41,6494,626

46,275

Increase in tangible and intangible fixed assets

49,09923,461

15,68688,247365

88,613

14,020102,633

Amortization of goodwill

2,292

21

154

2,468

—

2,468

—

2,468

(*1) “Other” is the business segment which is not included in the reportable segment and consists of real estate income and sales by headquarters.
(*2) Adjustment is as follows:• Adjustments for operating income ended March 31, 2024 and 2023 include ¥472 million (US$3,117 thousand) and ¥(681) million of adjustment for unrealized gain and ¥(27,424) million (US$(181,124) thousand) and ¥(28,801) million of corporate cost, respectively. Corporate
cost consists primarily of sales, general and administrative expenses and research and development costs which do not belong to the reportable segment.
• Adjustments for Identifiable assets ended March 31, 2024 and 2023 include ¥(243,153) million (US$(1,605,924) thousand) and ¥(206,729) million of elimination of inter-segment transaction and ¥101,104 million (US$667,750 thousand) and ¥95,063 million of corporate
assets, respectively. Corporate assets consisted primarily of cash and deposits, investment securities, assets for development and assets for management division of head office which do not belong to the reportable segment.
• Adjustments for depreciation and amortization ended March 31, 2024 and 2023 are for corporate assets. Depreciation and amortization and Increase in tangible and intangible fixed assets include long-term prepaid expenses.
• Adjustment for increase in tangible and intangible fixed assets is increase in corporate assets.

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section79

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
Loss on impairment of fixed assets and Unamortized balance of goodwill by reportablesegments were as follows:

Net sales and Property, plant and equipment by geographical areas were as follows:
Millions of yen

Millions of yen

Loss on impairmentof fixed assets

MedicalRelated¥

Unamortized balanceof goodwill

2024

Reportable segment

PharmaceuticalRelated

PharmaPackaging

243

¥—

¥ 493

13,814

—

1,793

Other

Adjustment

736

¥—

¥—

15,607

—

—

Total

¥

Total

¥

736

Loss on impairmentof fixed assets

Unamortized balanceof goodwill

MedicalRelated¥

PharmaceuticalRelated

768

¥—

12,70810¥

Property, plant andequipment
Other

Adjustment

768

¥—

¥—

14,514

—

—

Total

—

¥

1,795

¥

Loss on impairmentof fixed assets

Unamortized balanceof goodwill

MedicalRelated

PharmaceuticalRelated

PharmaPackaging$ 1,606$—$ 3,257

91,238—

11,844

2024

Other

Adjustment

4,863

$—

$—

103,082

—

—

Total

$

Total

$

4,863

Total

¥77,203¥96,961¥586,785

304,453

34,12350,00992,921

481,508

Japan

2023

Americas

Europe

Asia

Total

¥290,177¥98,089¥68,294¥88,636¥545,199

275,739

29,74439,42187,644

432,550

Thousands of U.S. dollars (Note 1)

768
14,514

Asia¥108,018

Total

Thousands of U.S. dollars (Note 1)
Reportable segment

Europe¥304,602

Millions of yen

Net sales

2023

PharmaPackaging

Property, plant andequipment

2024

Americas15,607

Millions of yen
Reportable segment

Net salesJapan

Net sales

Property, plant andequipment

Japan

2024

Americas

Europe

Asia

Total

$2,011,771$713,416$509,894$640,393$3,875,475

2,010,791

225,373

330,292

613,7093,180,165

14. Selling, General and Administrative Expenses
Significant components of selling, general and administrative expenses for the years ended
March 31, 2024 and 2023 were as follows:

103,0822024
Salaries

Millions of yen¥29,7252023¥25,951

Thousands of
U.S. dollars (Note 1)

2024$196,323

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

80

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
15. Research and Development Expenses

17. Revenue Recognition Breakdown

Research and development expenses for the years ended March 31, 2024 and 2023 were
¥20,846 million (US$137,680 thousand) and ¥19,669 million, respectively.

(1) Revenue from contracts with customers
Sales by productMillions of yen

16. Impairment Loss
For the years ended March 31, 2024 and 2023, the Company and its consolidated subsidiaries
recorded impairment loss of ¥736 million (US$4,860 thousand) and ¥768 million, respectively.

Purpose of use

Idle assets
Business use

Business use

Location

Nipro PharmaPackaging(Anyang) Co., Ltd.

Next OrthoSurgical Inc.

Other

Millions of yen

Thousands of
U.S. dollars (Note 1)

AmountAmount¥493$3,2572024

Type of asset

Buildings, construction inprogress, etc.

¥176

Goodwill, etc.

¥ 66

Goodwill, etc.

2024

AmountPatent rights, etc.

¥186

NexMed International Co., Ltd.

Tools and fixtures, etc.

—

Nipro Digital Technologies Europe N.V.

Goodwill, etc.

Business use

Next OrthoSurgical Inc.

2023

Type of asset

Business use¥329,588

Sales to external customers¥225

PharmaPackaging

Subtotal

Others(*1)

Total¥ 4,112¥333,700¥ —¥333,700

109—

53,06453,174—53,174

—

—

148

148

420

569

¥453,613¥74,320¥58,035¥585,969¥816¥586,785

Others
(*1)

Total

—

¥

2024

—

123,915

OthersOthersPharmaceuticalRelated

74,320709—$1,165

Millions of yen
Location

Pharmaceutical Packaging
Products

MedicalRelated

198,945

—

—

—

395

198,945

395

Thousands of U.S. dollars (Note 1)$ 441

The assets for business use are divided into groups on which separate financial information is reported for management accounting
purposes, whereas leased assets and idle assets are categorized individually. Headquarters assets, R&D facilities, dormitories andcompany-offered houses are categorized into assets for common use, since these assets cannot generate identifiable cash flows.
The company recognized the impairment loss, since the economic performance of above-mentioned assets will be worse thanwhat the company originally expected.
The recoverable amount of an asset group is measured by its net selling price or its value in use. In the case that the recoverable
amount is net realizable value, it shall be based on appraisal value. Whether the recoverable amount is the value in use, it is calculatedby discounting future cash flow by approximately 5%.

Purpose of use

Medical devices

Medical products

The following table presents the major impaired assets.

Reportable segments

Medical devices

Medical products

Pharmaceutical Packaging
Products

MedicalRelated$2,176,793

Sales to external customers

PharmaceuticalRelated

PharmaPackaging

Subtotal$ 27,161$2,203,954

725—

350,466

351,192

—

—

983

983

$2,995,929$490,855$383,299$3,870,084

—

$

2024

—

818,410

OthersOthersReportable segments

490,855

—

4,688

—

1,313,954—$—$2,203,954—

351,192

—

2,780

2,610

1,313,954

3,763

2,610

$5,391$3,875,475

Others(*1)

TotalMillions of yen¥356

Medical devices

Medical products

Pharmaceutical Packaging
Products
OthersOthersSales to external customers

Reportable segments

MedicalRelated¥312,205

PharmaceuticalRelated

PharmaPackaging

Subtotal—¥ 3,401¥315,607¥ —¥315,607

62—

47,70047,763—47,763

35

—

225

260

312

573

¥419,957¥72,734¥51,754¥544,446¥752¥545,199

107,654

—

¥

2023

72,734—426—

180,815——439

180,815439

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section
SectionFinancial/Data

Review ofOperations

Medium-Term
Outline of theManagement
Plan
Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

81

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent
Auditor’s Report
Reportof Independent
Auditors
Corporate Information

Notes to Consolidated Financial Statements
Sales by region

Reportable segments

MedicalRelatedJapan¥222,877

Europe51,960America
Asia

OthersSales to external customers(3) Outstanding Balance of Accounts Receivable and Contract Liabilities

Millions of yen

94,517

PharmaceuticalRelated

PharmaPackaging

Subtotal

Others(*1)

Total¥67,726¥13,189¥303,793¥413¥304,206(69)

25,312

77,203—

77,203084,2586,662¥453,613¥74,320

—

2024

—

13,494

108,012

6,038

96,959——¥58,035¥585,969

5

2

395

¥816

108,018

96,961395¥586,785

Accounts Receivable

Beginning Balance(April 1, 2023)¥160,271

Contract Liabilities

Customer Advances¥

Liabilities related topaid-in transactions

Refundable liabilities
Deferred Revenues

Thousands of U.S. dollars (Note 1)

Japan

America
EuropeAsia

OthersSales to external customers

Reportable segments

MedicalRelated$1,472,013

624,248
343,175

PharmaceuticalRelated$447,305
3(457)

556,491

44,004$2,995,929$490,855——$ 87,111

89,126

Subtotal$2,006,431

713,378

167,176

509,894

39,884—$383,299

640,379—$3,870,084

Others(*1)

Total$2,729$2,009,160

37—

713,416

509,89413

640,393$5,391$3,875,475

2,610

2,610

MedicalRelatedJapan¥210,788

Europe47,718America
Asia

OthersSales to external customers

86,014

PharmaceuticalRelated

Subtotal

Others(*1)

Total¥66,778¥11,860¥289,427¥311¥289,738

110

20,46568,294—

68,294—75,4375,846¥419,957¥72,734—2023

PharmaPackaging—

12,075
7,352—¥51,754

Ending Balance(March 31, 2024)

Beginning Balance(April 1, 2022)——¥160,240

—

¥

426

1,248

¥

¥

573

¥

578

2023

¥140,285

Ending Balance(March 31, 2023)¥160,271
—

¥

368

1,671

¥

2,115

¥
¥

1,248

¥

474

¥

633

¥

573

¥

345

¥

284

¥

578

¥

590

426

Accounts Receivable
Contract Liabilities

Beginning Balance(April 1, 2023)$1,058,527

—

2024

Ending Balance(March 31, 2024)$1,058,320—

Customer Advances

$

2,816

$

Liabilities related topaid-in transactions$

11,038

$

3,787

$

3,133

$

3,817

$

2,284

Refundable liabilities
Deferred Revenues

$

8,248

2,433

(*1) Contract liabilities consist mainly of customer advances for medical supplies and equipments overseas. They also include
unearned income for maintenance service contracts.

Millions of yen
Reportable segments

Millions of yen

Thousands of U.S. dollars (Note 1)

2024

PharmaPackaging

2024

98,08988,635—¥544,446

0

0

439

¥752

98,08988,636439¥545,199(4) Unfulfilled Performance Obligation
The Group does not have any significant outstanding performance obligations which exceed
one year. Most contracts are within one year.

18. Notes to Consolidated Statements of Cash Flows
Reconciliations between “Cash and cash equivalents” on the consolidated statements ofcash flows and “Cash and deposits” on the consolidated balance sheets were as follows:(*1) Other income refers to income from rentals, etc.

(2) Foundational information to understand revenue from contracts with customers
Foundational information to understand revenue from contracts with customers is describedin 2. Summary of Significant Accounting Policies (o) Revenue Recognition.

2024

Millions of yen

2023

Thousands of
U.S. dollars (Note 1)

2024

Cash and deposits¥99,667¥89,678$658,265

Cash and cash equivalents¥96,582¥84,695$637,886(Time deposits with maturities exceeding three months)¥ (3,085)¥ (4,982)$ (20,378)

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
Reporting

Financial/Data
SectionManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

82

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Report

Independent Auditor’s Report

the intangible assets of ¥516,647 million

procedures to the key audit matter.

recorded on the consolidated balance(1) Internal Control Testing

sheets include the property, plant andWe tested the operating effectiveness ofReport on the Audit of the Consolidated Financial Statements Opinion

equipment and the intangible assets ofinternal controls over developing theWe have audited the accompanying consolidated financial statements of Nipro¥18,985thebusiness plan based on the future cash

Corporation (“the Company”) and its consolidated subsidiaries (collectively referred to as

consolidated subsidiary, Nipro Vietnam

flow of Nipro Vietnam Company LIMITED“the Group”), which comprise the consolidated statement of financial position as at MarchCompany LIMITED, which represented

and approving the business plan by the31, 2024, and the consolidated statements of profit or loss and other comprehensive

1.7% of total assets in the consolidated

Company.

income, changes in equity and cash flows for the year then ended, and notes tofinancial statements.

(2) Reasonableness of the estimatedconsolidated financial statements.

As described in Note to Consolidated

undiscounted future cash flow

In our opinion, the accompanying consolidated financial statements present fairly, in all

Financial(Significant

We discussed with management and thematerial respects, the consolidated financial position of the Group as at March 31, 2024,

accounting estimates) 2. Accounting for

personal responsible for the businessand its consolidated financial performance and its consolidated cash flows for the year

impairment of fixed assets, the Company,

plan

the

key

assumption

used

in

then ended in accordance with accounting principles generally accepted in Japan.

inestimating

thebusinessplanbyTo the Board of Directors of Nipro Corporation:

millionrelatedtoStatements

principle,classified

theirbusiness

assets into groups based on management

management, and also evaluated theBasis for Opinion

accounting classification, and if there arefeasibility and uncertainty of used key

We conducted our audit in accordance with auditing standards generally accepted in

asset

assumption

Japan. Our responsibilities under those standards are further described in the Auditor’s

impairment, the Company tested whether

Responsibilities for the Audit of the Consolidated Financial Statements section of ourtoreport. We are independent of the Group in accordance with the ethical requirements thatcomparingare relevant to our audit of the consolidated financial statements in Japan, and we have

undiscounted future cash flows generated

manufacturing

fulfilled our other ethical responsibilities in accordance with these requirements. We

from the asset group to the carrying

interview

believe that the audit evidence we have obtained is sufficient and appropriate to provide

amount.

reviewing the related documents.

a basis for our opinion.

As

groups identified

recognize

an

any

total

considering

thefollowingitems.

lossby・We evaluated the feasibility of estimate

amountofof

impairment

thesigns ofobtaining

permits

withbynecessaryforconducting

themanagement

and

LIMITED・ We evaluated the feasibility of sales

continued to record operating losses andforecast by conducting the interview withKey Audit Matterthesemanagement about

Key audit matters are those matters that, in our professional judgment, were of most

impairment, the Company tested whether

including whether they are consistent
with the future forecast reports published

Nipro
are

VietnamCompany

identified

as

a

sign

of

future prospects,

significance in our audit of the consolidated financial statements of the current period.

an impairment loss should be recognized

These matters were addressed in the context of our audit of the consolidated financial

As a result, the Company concluded thatby research organizations and others andstatements as a whole, and in forming our opinion thereon, and we do not provide athe recognition of impairment loss was notreviewing contracts for future orders.

separate opinion on the matter.

necessary since the total amount of theundiscounted future cash flows generated

Appropriateness of management’s judgement as to whether an impairment loss shouldfrombe recognized on fixed assets of the consolidated subsidiary (Nipro Vietnam Company

carrying amount.

LIMITED)ThisThe key audit matter

How the matter was addressed inWemainlyperformed

test

asset
was

group

exceeded

performed

on

the
the

assumption that its business plan isreasonable and has a high feasibility. As

our audit
The property, plant and equipment and

the

the

following

Estimates for obtaining permits necessary

Independent Auditor’s Report
Corporate Information

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
SectionConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Report

to manufacture dialyzers and future sales
forecast involve important assumptions,Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

there is a high degree of uncertainty andOur objectives are to obtain reasonable assurance about whether the consolidated

there

is

room

for

arbitrarinessinfinancial statements as a whole are free from material misstatement, whether due tomanagement's judgment.

fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable

We, therefore, identified our assessment

assurance is a high level of assurance, but is not a guarantee that an audit conducted inof the appropriateness of management’s

accordance with auditing standards generally accepted in Japan will always detect a

judgement as to whether an impairment

material misstatement when it exists. Misstatements can arise from fraud or error andloss should be recognized on fixed assets

are considered material if, individually or in the aggregate, they could reasonably beof this consolidated subsidiary as a key

expected to influence the economic decisions of users taken on the basis of theseaudit matter.

consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan,

Other Matters

we exercise professional judgment and maintain professional skepticism throughout the

The predecessor auditor audited the consolidated financial statements of the Group as at

audit. We also:

March 31, 2023 and for the year then ended. It expressed an unqualified auditor’s

Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures

opinion on the consolidated financial statements effective June 28, 2023.

responsive to those risks, and obtain audit evidence that is sufficient and appropriate
Other Information

to provide a basis for our opinion. The risk of not detecting a material misstatement

The other information comprises the information included in the disclosure documents

resulting from fraud is higher than for one resulting from error, as fraud may involvethat contain or accompany the audited consolidated financial statements, but does notcollusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.

include the consolidated financial statements and our auditor’s report thereon.
We do not perform any work on the other information as we determine such information

Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, while the objective of thedoes not exist.

audit is not to express an opinion on the effectiveness of the Group’s internal control.
Responsibilities of Management and Corporate Auditors and the Board ofManagement is responsible for the preparation and fair presentation of the consolidated

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Corporate Auditors for the Consolidated Financial StatementsConclude on the appropriateness of management’s use of the going concern basis offinancial statements in accordance with accounting principles generally accepted inaccounting and based on the audit evidence obtained, whether a material

Japan, and for such internal control as management determines is necessary to enable

uncertainty exists related to events or conditions that may cast significant doubt on

the preparation of consolidated financial statements that are free from material

the Group’s ability to continue as a going concern. If we conclude that a material

misstatement, whether due to fraud or error.

uncertainty exists, we are required to draw attention in our auditor’s report to the

In preparing the consolidated financial statements, management is responsible forrelated disclosures in the consolidated financial statements or, if such disclosures areassessing the Group’s ability to continue as a going concern, disclosing, as applicable,

inadequate, to modify our opinion. Our conclusions are based on the audit evidence

matters related to going concern in accordance with accounting principles generally

obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.

accepted in Japan.
Corporate auditors and the board of corporate auditors are responsible for overseeing theEvaluate whether the presentation and disclosures in the consolidated financial

directors’ performance of their duties with regard to the design, implementation andstatements are in accordance with accounting principles generally accepted in Japan,

maintenance of the Group’s financial reporting process.

the overall presentation, structure and content of the consolidated financial

83
Independent Auditor’s Report
Corporate Information

NIPRO Annual Report 2024

Contents

About NIPRO

Financial/Data Section

Management
MessageFinancial Review
Ten-Year Summary

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
SectionConsolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Reportstatements, including the disclosures, and whether the consolidated financial

Interest required to be disclosed by the Certified Public Accountants Act ofstatements represent the underlying transactions and events in a manner thatJapan

achieves fair presentation.

We do not have any interest in the Group which is required to be disclosed pursuant toObtain sufficient appropriate audit evidence regarding the financial information of thethe provisions of the Certified Public Accountants Act of Japan.

entities or business activities within the Group to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision

Miho Ishihara

and performance of the group audit. We remain solely responsible for our audit

Designated Engagement Partner

opinion.

Certified Public Accountant

We communicate with corporate auditors and the board of corporate auditors regarding,among other matters, the planned scope and timing of the audit, significant audit

Hiroshi Kobayashi

findings, including any significant deficiencies in internal control that we identify during

Designated Engagement Partner

our audit.

Certified Public Accountant

We also provide corporate auditors and the board of corporate auditors with a statementthat we have complied with relevant ethical requirements regarding independence, andKiminori Funaki

communicate with them all relationships and other matters that may reasonably be

Designated Engagement Partner

thought to bear on our independence, and where applicable, actions taken to eliminate

Certified Public Accountant

threats or safeguards applied.
From the matters communicated with corporate auditors and the board of corporate

KAINAN AUDIT CORPORATION

auditors, we determine those matters that were of most significance in the audit of the

Osaka Office, Japan

consolidated financial statements of the current period and are therefore the key audit

June 26, 2024

matters. We describe these matters in our auditor’s report unless law or regulationprecludes public disclosure about the matter or when, in extremely rare circumstances,

Notes to the Reader of Independent Auditor’s Report:

we determine that a matter should not be communicated in our report because theThis is a copy of the Independent Auditor’s Report and the original copies are kept

adverse consequences of doing so would reasonably be expected to outweigh the public

separately by the Company and KAINAN AUDIT CORPORATION.

interest benefits of such communication.
Fee-related Information
Fees paid or payable to our firm and to other firms within the same network as our firm
for audit and non-audit services provided to the Company and its subsidiaries for thecurrent year are 91 million yen and 1 million yen, respectively.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements withrespect to the year ended March 31, 2024 are presented solely for convenience. Our
audit also included the translation of yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 2 to theconsolidated financial statements.

84
Independent Auditor’s Report
Corporate Information

NIPRO Annual Report 2024

Contents

About NIPROManagement
MessageFinancial Review
Ten-Year Summary

Financial/Data Section

Review ofOperations

Medium-Term
Management Plan

Consolidated Balance Sheets
Consolidated Statements of Income

Social Bond
ReportingManagement
Foundation

Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets

Financial/Data
Section85

Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements

Independent Auditor’s Report
Corporate Information

Corporate Information (As of March 31, 2024)
Principal Shareholders

Date of Establishment
July 8, 1954
Head Office
3-26, Senriokashinmachi, Settsu, Osaka 566-8510, Japan
Telephone: +81-6-6310-6910
https://www.nipro.co.jp/en/
Tokyo Office
4-3-4 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan
Telephone: +81-3-5684-5611
Number of Employees
Parent company
Consolidated subsidiaries
Total

4,388
33,72938,117

Common Stock
Authorized ......................................... 400,000,000 shares
Issued ................................................ 171,459,479 shares
Outstanding ....................................... 163,095,857 shares
Number of Shareholders per unit ............................ 62,816
Number of shares per unit ................................. 100 shares

Stock Price Range (Tokyo Stock Exchange)

The Master Trust Bank of Japan, Ltd. (Trust Account)
Nippon Electric Glass Co., Ltd.
Custody Bank of Japan, Ltd. (Trust Account)
JP Morgan Chase Bank 385632
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)
NIPRO CORPORATION
Employee Stock Ownership Association
MLI FOR CLIENT GENERAL OMNI NONCOLLATERALNON TREATY-PB
STATE STREET BANK WEST CLIENT-TREATY 505223
Kazumi Sano
STATE STREET BANK WEST CLIENT-TREATY 505234
Total

Percentage of
Number of
Total Shares
Shares Held(in thousands) in Issue (%)
20,282
12.39
13,645
8.34
10,114
6.18
4,447
2.72
4,022
2.46
2,633

1.61

2,508

1.53

1,992
1,910
1,648
63,205

1.22
1.17
1.01
38.61

(Yen)

1,400

1,200

1,000

800

12

2022

3

6

9

12

2023

3

6

9

12

2024

Major Group Companies (As of March 31, 2024)
Area
Domestic

CountryJapan

Overseas

Thailand
China

Stock Listings
Tokyo Stock Exchange, Prime Market
Ticker Code: 8086

Vietnam

Transfer Agent
Mizuho Trust & Banking Co., Ltd., Head Office
Stock Transfer Agency Dept.
1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8241, Japan

Bangladesh

Singapore
India

Indonesia
UAE
BrazilU.S.A.

CanadaBelgium
FranceGermany
Switzerland
RussiaCroatia

Name
Nipro Medical Industries Co., Ltd.
Goodman Co., Ltd.
NexMed International Co., Ltd.
Nipro Pharma Corporation
Zensei Pharmaceutical Industries Co., Ltd.
Cell Science & Technology Institute, Inc.
Nipro Sales (Thailand) Co., Ltd.
Nipro (Thailand) Corporation Limited
Nipro (China) Holdings Co., Ltd
Nipro Trading (Shanghai) Co., Ltd
Nipro (Shanghai) Co., LTD.
Nipro Medical (Hefei) Co., Ltd.
Nipro PharmaPackaging (Shanghai) Co., Ltd
Nipro PharmaPackaging (Anyang) Co., Ltd.
Chengdu Pingyuan Nipro Pharmaceutical Packaging Co., Ltd.
Nipro Vietnam Company LIMITED
Nipro Pharma Vietnam Co., Ltd
Nipro Asia Pte Ltd.
Nipro Medical (India) Pvt. Ltd.
Nipro India Corporation Private Limited
Nipro PharmaPackaging India Private Limited
Nipro JMI Co., Ltd.
Nipro JMI Pharma Ltd.
PT. Nipro Indonesia JAYA
Nipro Middle East FZE
Nipro Medical Ltda.
Nipro Holding Americas, Inc
Nipro Medical Corporation
Infraredex, Inc.
Nipro PharmaPackaging Americas Corporation
Nipro Canada Corporation
Nipro Europe Group Companies N.V.
Nipro Medical Europe N.V.
Nipro PharmaPackaging International N.V.
Nipro PharmaPackaging France S.A.S.
Nipro PharmaPackaging Germany GmbHNIPRO PHARMA GLASS AG
Nipro PharmaPackaging Ural LLC
Nipro PharmaPackaging Croatia LLC

Principal business
Manufacturing and marketing of medical devices
Manufacturing and marketing of medical devices
Development, manufacturing and marketing of orthopedic products
Manufacturing and marketing of pharmaceuticals
Manufacturing and marketing of pharmaceuticals
Development and manufacturing of cell culture media
Marketing of medical devices
Manufacturing and marketing of medical devices
General management of the subsidiaryMarketing of medical devices
Manufacturing and marketing of medical devices
Manufacturing and marketing of medical devices
Marketing of PharmaPackaging products
Manufacturing and marketing of PharmaPackaging products
Manufacturing and marketing of PharmaPackaging products
Manufacturing and marketing of PharmaPackaging products
Manufacturing and marketing of pharmaceuticals
Marketing of medical devices
Marketing of medical devices
Manufacturing and marketing of medical devices
Manufacturing and marketing of PharmaPackaging products
Manufacturing and marketing of medical devices
Manufacturing and marketing of pharmaceuticals
Manufacturing and marketing of medical devices
Marketing of medical devices
Manufacturing and marketing of medical devices
General management of the subsidiaryMarketing of medical devices
Development, Manufacturing and marketing of medical devices
Manufacturing and marketing of PharmaPackaging products
Manufacturing and marketing of medical devices
General management of the subsidiaryMarketing of medical devices
General management of the subsidiary
Manufacturing and marketing of PharmaPackaging products
Manufacturing and marketing of PharmaPackaging products
General management of the subsidiary
Manufacturing and marketing of PharmaPackaging products
Manufacturing and marketing of PharmaPackaging product3