Outline of Consolidated Financial Results for the Second Quarter Ended
September 30, 2009
November 10, 2009
Name of the listed company: NIPPON SHINYAKU CO., LTD.
Listing stock exchange: Tokyo, Osaka
Code No.: 4516
URL http://www.nippon-shinyaku.co.jp/
Representative: Shigenobu Maekawa, President and Representative Director
Contact: Taro Sakurai, General Manager and Finance & Accounting Dept.
Tel. +81-75-321-9114
Scheduled date for submission of quarterly Securities Report: November 11, 2009
Scheduled start of payment: December 10, 2009
* All amounts are rounded down to the nearest million yen.

1. Consolidated Results for the Second Quarter Ended September 30, 2009 (April 1 to September 30, 2009)(1) Operating results
Net sales
Second quarter ended
September 30, 2009
Second quarter ended
September 30, 2008

Operating income

Ordinary income(¥ million)
Net income for quarter

30,070(5.9 %)

2,910(37.3 %)

3,031

(39.8 %)

2,027

(33.6 %)

31,942

—

4,644

—

5,040

—

3,053

—

Net income per share (¥)
Basic
Diluted30.01—

Second quarter ended
September 30, 2009
Second quarter ended
45.15—
September 30, 2008
Notes: 1. Percentage figures for net sales, operating income, ordinary income and net income represent year-on-year comparisons.
2. Equity-method investments: not applicable(2) Financial position
Total assets
100,52598,286

As of September 30, 2009
As of March 31, 2009
Note: Owners’ equity
As of September 30, 2009: ¥78,638 million

Net assets
78,79576,344(¥ million)
Net assets per share (¥)
1,164.02
1,127.49

Equity ratio
78.2
77.5

As of March 31, 2009: ¥76,192 million

2. Dividends
Cash dividends per share (¥)
1st quarter2nd quarter3rd quarter

Year-end

AnnualYear ended March 31, 2009

—

¥9.00

—

¥9.00

¥18.00Year ending March 31, 2010

—

¥9.00
—

¥10.00¥19.00Year ending March 31, 2010 (forecast)
Note: Revisions to forecast for the current quarter: None.

3. Business Forecast for the Year Ending March 31, 2010 (April 1, 2009 to March 31, 2010)
Net sales

Operating income

Ordinary income

Net income

Full term
64,300
1.9%
7,700
2.0%
8,100
0.7%
4,700
Note: 1. The percentage figure is the change against the previous term.
2. Revisions have been made to forecast for consolidated financial results for the current quarter.

4.4%(¥ million)
Net income
per share (¥)
69.57

4. Others(1) Changes in the scope of consolidation
Inclusion: none
Exclusion: none
(2) Adoption of simplified accounting methods and specific accounting procedures for quarterly consolidated financial statements
Applicable(3) Changes in significant accounting policies in preparation of consolidated quarterly financial statements
Changes in accounting standards: none
Changes other than above: none(4) Number of ordinary shares outstanding at the end of the year (including treasury stock)As of September 30, 2009: 70,251,484 shares
As of March 31, 2009: 70,251,484 shares
Number of shares of treasury stock at the end of the year
As of September 30, 2009: 2,693,605 shares
As of March 31, 2009: 2,674,288 shares
Average number of ordinary shares outstanding (total for the consolidated period)
As of September 30, 2009: 67,565,051 shares
As of March 31, 2009: 67,622,384 shares
The above forecasts are based on data available as of the date of release of this document as well as assumptions based on uncertain
factors, which might have a material effect on the Company’s performance in the future. Readers are advised that actual results may
differ substantially from the above forecasts due to various unforeseeable factors.

5. Consolidated Financial Statement for the Quarter(1) Consolidated Balance Sheet for the Quarter(¥ million)
As of 2nd quarter ended
September 30, 2009

As of previous consolidated fiscal
year ended March 31, 2009

AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Merchandise and products
Partially finished products
Work in process
Materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets¥13,247
24,232
5,294
6,175
740
371
3,534
1,583
1,623
(0)
56,804¥14,687
27,632
1,798
6,050
789
381
3,609
1,617
1,027
(16)
57,578

Noncurrent assets:
Tangible fixed assets:
Buildings and structures (net)Land
Other (net)Total tangible fixed assets

8,703
8,160
3,020
19,884

9,021
8,161
3,222
20,406496

307

12,837
52
1,304
8,288
893
(36)
¥23,340¥43,720¥100,525

11,532
164
1,330
6,166
838
(39)
¥19,993¥40,708¥98,286

Intangible fixed assets
Investments and other assets:
Investment securities
Deferred tax assets
Investments in real estate (net)Long-term prepaid expenses
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets(¥ million)
As of 2nd quarter ended
September 30, 2009

As of previous consolidated fiscal
year ended March 31, 2009

Liabilities
Current liabilities:
Notes and accounts payable
Current portion of long-term debt
Accrued liabilities
Income taxes payable
Reserve for bonuses
Reserve for sales returns
Other current liabilities
Total current liabilities¥4,254
53
2,547
1,252
2,466
26
2,223
12,823¥4,432
70
3,267
1,551
2,463
48
1,688
13,522Long-term liabilities:
Long-term debt
Deferred tax liability
Liability for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

156
408
8,104
235
8,905
21,729

182
0
8,009
228
8,420
21,942

Net assets
Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

5,174
4,444
66,972(2,006)
74,585

5,174
4,444
65,553(1,985)73,186

4,076
(1)
(21)
4,053
156
78,795¥100,525

3,032
0
(26)
3,006
151
76,344¥98,286

Valuation and translation adjustments:
Unrealized gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

(2) Consolidated Statements of Income for the Second Quarter(Total for the consolidated period ended September 30, 2009)(¥ million)
2nd quarter ended
September 30, 2008
Net sales
Cost of sales
Gross profit
Provision for reserve for sales returns
Reversal of reserve for sales returns
Balance of gross profit
Selling, general and administrative expenses:
Salaries and benefits
Provision for bonuses
Sales promotion expenses
Provision for retirement benefits
Depreciation
R&D expenses
Other
Total general, selling, and administrative expenses
Operating income
Non-operating income:Interest income
Dividend received
Rents on housing
Foreign exchange gain
Other
Total non-operating incomeNon-operating expenses:
Interest expenses
Donation
Loss on disposal of noncurrent assets
Plant demolition costs
Leasing expenses
Foreign exchange loss
OtherTotal non-operating expenses
Ordinary income
Extraordinary profit
Gain from sales of fixed assets
Extraordinary profit total
Income for the quarter before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Minority net income
Net income for the quarter2nd quarter ended
September 30, 2009

¥ 31,942
14,243
17,699－24
17,675¥30,070
13,937
16,13322－
16,155

2,807
1,488
613
489
172
3,812
3,647
13,030
4,644

2,918
1,581
560
558
179
3,890
3,555
13,245
2,910

109
140
152
175
162
740

52
112
158
－
109
433

9
97
32
70
47
－
87
345
5,040

591
18－
53
105
37
311
3,031

－
－
5,040
1,646
338
1,985
1
¥3,053

206
206
3,238
1,205
0
1,205
5
¥2,027

(3) Consolidated Statements of Cash Flows for the the Second Quarter(¥ million)
2nd quarter ended
September 30, 2008
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in liability for retirement benefits
Increase (decrease) in other reserves
Interest and dividend income
Interest expense
Foreign exchange loss (gain)
Loss (gain) on sales of tangible fixed assets
Loss (gain) on disposal of noncurrent assets
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable
Increase (decrease) in consumption taxes payable
Increase (decrease) in other current liabilities
Other – net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchases of funds into time deposits
Proceeds from withdrawal of time deposits
Acquisitions of marketable securities
Proceeds from redemption of investment securities
Purchases of investment in securities
Proceeds from the sale or redemption of investment in securities
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchases of intangible assets
Provision of loans
Proceeds from collection of loans
Expenditures for long-term prepaid expenses acquired
Net cash used in investing activities
Cash flows from financing activities
Expenditure for repayment of short-term debt
Proceeds from long-term debt
Dividends paid
Purchase of treasury stock
Other – net
Net cash used in 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 quarter
Cash and cash equivalents at end of quarter2nd quarter ended
September 30, 2009

¥5,040
1,343
(263)
(18)
(249)
9(107)–
30
1,097
(828)
(170)
(398)
(51)
(446)
27
5,015
249
(9)
(1,622)
3,632¥3,238
1,443
95
(37)
(164)
5
168
(206)
18
3,399
9(601)
(178)
(96)
159
(2)
7,250
165
(5)
(1,504)
5,907

(40)
70
－
100
(34)
30
(583)
35
(24)
(13)
41
(1,904)(2,324)

(50)
30
(99)
483
(102)
0(666)
208
(232)
(71)
28
(2,562)(3,032)

(10)
(589)
(609)
(66)
4
(1,271)99
135
15,153¥15,289

–
(42)
(607)
(20)
(0)
(670)
(163)
2,040
15,446¥17,487