Outline of Consolidated Financial Results for the Quarter Ended June 30, 2010
August 7, 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: August 10, 2009
* All amounts are rounded down to the nearest million yen.

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

15,782
17,739(11.0%)—

Operating income

Ordinary income(¥ million)
Net income for quarter

2,123
4,016

2,248
4,508

1,474
2,923

(47.1%)—(50.1%)—(49.6%)—Net income per share (¥)
Basic
DilutedQuarter ended June 30, 2009
21.82—
Quarter ended June 30, 2008
43.22—
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
103,176
98,286

As of June 30, 2009
As of March 31, 2009
Note: Owners’ equity
As of June 30, 2009: ¥78,389 million

Net assets
78,53976,344(¥ million)
Net assets per share (¥)
1,160.19
1,127.49

Equity ratio
76.0
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¥19.00

Year 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

First-half period
30,000(6.1%)
2,500(46.2%)
2,700(46.4%)
Full term
64,700
2.6
7,700
2.0
8,100
0.7
Note: Revisions to forecast for consolidated financial results for the current quarter: None.

Net income
1,600
4,700(47.6%)
4.4(¥ million)
Net income
per share (¥)
23.68
69.56

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 June 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 June 30, 2009: 2,685,705 shares
As of March 31, 2009: 2,674,288 shares
Average number of ordinary shares outstanding (total for the consolidated period)
As of June 30, 2009: 67,569,864 shares As of March 31, 2009: 67,636,158 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 1st quarter ended
June 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¥11,705
28,167
4,199
5,810
663
560
3,5872,154
1,349
(0)
58,199¥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

8,865
8,161
3,109
20,136

9,021
8,161
3,222
20,406330

307

13,768
48
1,313
8,543
873
(37)
¥24,510¥44,977¥103,176

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
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets(¥ million)
As of 1st quarter ended
June 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¥4,775
59
3,022
1,352
3,693
31
2,561
15,496¥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

169
674
8,062
234
9,141
24,637

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
66,419(1,997)74,041

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

4,365
1(19)
4,347
149
78,539¥103,176

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 Quarter(Total for the consolidated period ended June 30, 2009)(¥ million)
1st quarter ended
June 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 income
Non-operating expenses:
Interest expenses
Donation
Loss on disposal of noncurrent assets
Leasing expenses
Foreign exchange loss
Other
Total non-operating expensesOrdinary income
Income for the quarter before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Minority interests (losses) in net income
Net income for the quarter

1st quarter ended
June 30, 2009

¥17,739
7,378
10,36032－
10,328¥15,782
7,253
8,528
－
17
8,545

1,421
743
129
242
84
1,822
1,867
6,312
4,016

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

36
136
75
267
80
595

27
109
77－
49
264

5
44
14
23－
15
103
4,508
4,508
1,976(394)
1,582
2¥2,923

320
126
72
15
139
2,248
2,248
1,326(551)774(1)¥1,474

(3) Consolidated Statements of Cash Flows for the Quarter(¥ million)
1st quarter ended
June 30, 2008
Cash flows from operating activities
Income before income taxes and minority interests

1st quarter ended
June 30, 2009

¥4,508¥2,248Depreciation and amortization

629

685

Decrease (increase) in liability for retirement benefits

(121)

53

Increase (decrease) in other reserves

1,234

1,195

Interest and dividend income

(173)

(137)

Interest expenses
Foreign exchange loss (gain)
Loss (gain) on disposal of noncurrent assets

53(318)69

14

1

Decrease (increase) in notes and accounts receivable

(608)

(535)

Decrease (increase) in inventories

(474)

209

Decrease (increase) in other current assets

(329)

(321)

Increase (decrease) in notes and accounts payable

102

343

Increase (decrease) in consumption taxes payable27

12(230)759

Increase (decrease) in other current liabilities
Other – net

4(9)

4,268

4,577

Interest and dividends received

171

136

Interest paid

(5)

(3)

Income taxes paid

(1,609)(1,498)Net cash provided by operating activities

2,825

3,211(50)

Subtotal

Cash flows from investing activities
Deposit of funds into time deposits(40)

Proceeds from withdrawal of time deposits

4030

Proceeds from sale and redemption of marketable securities－(99)

Purchases of investment securities－

183

Proceeds from sale and redemption of investment securities

(32)

(101)

Purchases of tangible fixed assets

(235)

(381)

Proceeds from sales of tangible fixed assets

350

Purchases of intangible assets－(44)

Provision of loans－(59)Collection of loans－10(910)(2,562)(1)－(1,144)(3,072)

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

(297)

(23)

Dividends paid

(527)

(543)

Purchase of treasury stock

(20)

(11)

Other – net
Net cash used in financing activities
Foreign currency transaction adjustments on cash and cash equivalents
Net decrease in cash and cash equivalents

2(0)

(844)

(578)

305

(61)

1,143

(501)

Cash and cash equivalents at beginning of quarter

15,153

15,446

Cash and cash equivalents at end of quarter¥16,297¥14,944