Outline of Consolidated Financial Results for the First Quarter Ended June 30, 2010
August 9, 2010
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: August 10, 2010
Supplementary materialYes
Financial result meetingYes (For institutional investors and securities analysts)* All amounts are rounded down to the nearest million yen.

1. Consolidated Results for the Quarter Ended June 30, 2010 (April 1 to June 30, 2010)(1) Operating results
Net sales
Quarter ended June 30, 2010
Quarter ended June 30, 200915,827
15,7820.3%(11.0%)

Operating income

Ordinary income

1,888
2,123

1,935
2,248

(11.1%)(47.1%)(¥ million)
Net income for quarter(13.9%)(50.1%)

1,341
1,474(9.1%)(49.6%)Net income per share (¥)
BasicDiluted
Quarter ended June 30, 2010
19.85—
Quarter ended June 30, 200921.82—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
103,186
103,575

As of June 30, 2010
As of March 31, 2010
Note: Owners’ equity
As of June 30, 2010: ¥ 79,944 million

Net assets
80,11080,370(¥ million)
Net assets per share (¥)
1,183. 65
1,187. 42

Equity ratio
77.5
77.4

As of March 31, 2010: ¥ 80,205 million

2. Dividends
Cash dividends per share (¥)
st1 quarter

2 quarter3rd quarter

Year-end

AnnualYear ended March 31, 2010

—

¥9.00

—

¥10.00¥19.00Year ending March 31, 2011

—
¥9.00

—

¥10.00¥19.00Year ending March 31, 2011 (forecast)
Note: Revisions to forecast for the current quarter: None.

nd

3. Business Forecast for the Year Ending March 31, 2011 (April 1, 2010 to March 31, 2011)
Net sales

Operating income

First-half period
30,3000.8%
1,900(34.7%)(total)Full term
64,7002.8%
5,300(18.0%)
Note: Revisions to forecast of financial result in this quarter: None.

2,200(27.4%)

1,400(31.0%)(¥ million)
Net income
per share (¥)
20.73

5,700(16.0%)

3,700(9.7%)

54.78

Ordinary income

Net income

4. Others(1) Changes in significant consolidated subsidiaries
Inclusion: none
Exclusion: none
Note: Changes in specified subsidiaries involving changes of scope of consolidation(2) Adoption of simplified accounting methods and specific accounting procedures
Applicable
Note: Simplified accounting methods and adoption of special accounting methods for preparation of quarterly financial statements(3) Changes in significant accounting policies in preparation of consolidated quarterly financial statements
Changes in accounting standards: yes
Changes other than above: none
Note: Changes in accounting principles, procedures and presentation methods for preparation of quarterly financial statements(4) Number of ordinary shares outstanding at the end of the year (including treasury stock)
As of June 30, 2010: 70,251,484 shares As of March 31, 2010: 70,251,484 shares
Number of shares of treasury stock at the end of the year
As of June 30, 2010: 2,710,494 shares
As of March 31, 2010: 2,705,042 shares
Average number of ordinary shares outstanding (total for the consolidated period)
As of June 30, 2010: 67,543,276 shares As of June 30, 2009: 67,569,864 sharesThis summary of quarterly financial results is exempt from the quarterly review procedures under the Financial Instruments andExchange Act. At the time of disclosure, published figures in this financial release were completed to a quarterly review of financial
statements based on the Financial Instruments and Exchange Law.
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 1st quarter ended
June 30, 2010

As of previous consolidated fiscal
year ended March 31, 2010

AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable
Marketable securities
Merchandise and products
Partially finished productsWork in process
Materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets¥11,287
25,470
8,735
6,193
873
319
3,587
2,031
2,255
(0)
60,753¥11,028
24,817
9,095
6,263
717
319
3,565
1,631
2,035
(0)
59,474

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

8,491
8,143
2,975
19,610

8,672
8,160
3,001
19,834612

644

11,292
314
8,380
2,257
(36)
22,20942,432¥103,186

12,76456
8,615
2,222(37)23,622
44,101¥103,575

Intangible fixed assets
Investments and other assets:
Investment securities
Deferred tax assets
Long-term prepaid expenses
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets(¥ million)
As of 1st quarter ended
June 30, 2010

As of previous consolidated fiscal
year ended March 31, 2010

Liabilities
Current liabilities:
Notes and accounts payable
Accrued liabilities
Income taxes payable
Reserve for bonuses
Reserve for sales returns
Other current liabilities
Total current liabilities¥4,527
3,010
959
3,545
–
2,455
14,498¥4,691
3,519
1,283
2,362
25
2,315
14,197Long-term liabilities:
Deferred tax liabilities
Liability for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

0
8,075
502
8,577
23,076

406
8,230
371
9,007
23,205

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

5,174
4,444
69,099(2,024)
76,693

5,174
4,444
68,433(2,018)76,033

3,283
(7)
(24)
3,251
165
80,110¥103,186

4,194
2
(25)
4,172
164
80,370¥103,575

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 Quarter(Total for the consolidated period ended June 30, 2010)(¥ million)
1st quarter ended
June 30, 2009
Net sales
Cost of salesGross profit
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
Rent income
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Donation
Foreign exchange loss
Loss on disposal of noncurrent assets
Rent expenses
Other
Total non-operating expensesOrdinary income
Extraordinary loss
Loss on adjustment for changes in accounting standard for asset
retirement obligations
Total extraordinary loss
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Income before minority interests
Minority interests (losses) in net income
Net income for the quarter

1st quarter ended
June 30, 2010

¥15,782
7,253
8,528
17
8,545

¥15,827
7,264
8,562
25
8,587

1,474
788
244
279
88
1,809
1,739
6,422
2,123

1,522
759
262
261
92
1,979
1,823
6,699
1,888

27
109
77
49
264

9
224
9291
418

3
2072
1
26
15
139
2,248

221
294
4
27
20
371
1,935

——
2,248
1,326(551)
774
—
(1)
¥1,474

133
133
1,802
951(495)
456
1,346
5
¥1,341

(3) Consolidated Statements of Cash Flows for the Quarter(¥ million)
1st quarter ended
June 30, 2009
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Decrease (increase) in liability for retirement benefits
Increase (decrease) in other reserves
Interest and dividend income
Interest expenses
Foreign exchange loss (gain)
Loss (gain) on disposal of noncurrent assets
Loss on adjustment for changes in accounting standard for asset
retirement obligations
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
Deposit of funds into time deposits
Proceeds from withdrawal of time deposits
Purchases of marketable securities
Proceeds from redemptions of marketable securities
Purchases of investment securities
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchases of intangible assets
Provision of loans
Collection of loans
Expenditures for long-term prepaid expenses acquired
Other – net
Net cash used in investing activities
Cash flows from financing activities
Proceeds from long-term debt
Dividends paidPurchase of treasury stock
Other – net
Net cash used in financing activities
Foreign currency transaction adjustments on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of quarter
Cash and cash equivalents at end of quarter

1st quarter ended
June 30, 2010

¥2,248
685
53
1,195
(137)
3
69
1

¥1,802742(154)
1,156
(234)
2
387
4

—(535)
209
(321)
343
12759
(9)
4,577
136
(3)
(1,498)
3,211

133
(653)
(107)
(214)
(163)
36
212
(51)
2,898
236
(2)
(1,223)1,908(50)30(99)
183
(101)
(381)
0
(44)
(59)
10(2,562)—(3,072)

(54)
50
(99)
—
(1)
(700)
—
(92)
——
(162)
(35)
(1,096)

(23)
(543)
(11)
(0)
(578)
(61)
(501)
15,446¥14,944

—
(607)
(5)
(16)
(630)
(386)
(204)
19,447¥19,243