Outline of Consolidated Financial Results
for the 3rd Quarter Ended December 31, 2016

February 8, 2017NIPPON SHINYAKU CO., LTD.

Operating Results（Million yen）

3Q FY2015
Results
Ratio

3Q FY2016
ResultsRatio

YoY ChangeAmt%

Net sales

63,463100.0%

76,260100.0%

12,796

20.2%

Operating income

6,907

10.9%

17,496

22.9%

10,588153.3%

Ordinary income

7,267

11.5%

18,792

24.6%

11,525158.6%Net income attributableto owners of the parent

5,017

7.9%

13,275

17.4%

8,258

164.6%

2Segmental Review-Pharmaceuticals（Million yen）3Q FY2015
Results

Ethical drugs
Profit in co-promotion
Revenues from the licensingof industrial property rights
Active PharmaceuticalIngredients
Net sales

3Q FY2016

Ratio

Results

Ratio

YoY Change
Amt%49,63993.8%

51,373

78.0%

1,733

3.5%

147

0.3%

2,014

3.1%

1,867

1,266.2%

2,576

4.9%

5,414

8.2%

2,838

110.2%

511

1.0%

7,065

10.7%

6,554

1,282.5%

52,874100.0%

65,868100.0%

12,993

24.6%

Increase in sales：・ Zalutia ( +2,283 million yen, +57.3% )(urinary disorder caused by benign prostatic hyperplasia)

・ Vidaza ( +1,641 million yen, +17.7% )(myelodysplastic syndromes)

Decrease in sales：・ Lunabell ( -1,103 million yen, -20.2% )(dysmenorrhea)

・ Eviprostat ( -660 million yen, -20.0% )(benign prostatic hyperplasia)

・ Tramal, Onetram ( +1,190 million yen, +36.7% )(cancer pain, chronic pain)
・ Contribution of a milestone payment on marketing
approval in Europe and royalty income based onoverseas sales as well as income from sales of active
ingredient regarding selexipag, our original product3

Segmental Review-Pharmaceuticals70,000（Million yen）

Net sales 65,868 million yen
52,87465,868Year-on-Year change+ 12,993 million yen (+24.6%)

0
3Q FY2015

3Q FY2016

4

Segmental Review-Functional Food（Million yen）

3Q FY2015
Results

Health food ingredients

3Q FY2016

Ratio

Results

Ratio

YoY Change
Amt%

593

5.6%

613

5.9%

193.3%

Preservatives

1,464

13.8%

1,700

16.4%

236

16.1%

Protein preparations

5,730

54.1%

5,705

54.9%

-25-0.4%

Nutritional ingredients

1,731

16.3%

1,318

12.7%

-412

-23.8%

Others

1,069

10.2%

1,053

10.1%

-15-1.5%

Net sales

10,588100.0%

10,391100.0%

-197

-1.9%

5

Segmental Review-Functional Food12,000(Million yen)

Net sales 10,391 million yen
10,588

10,391Year-on-Year change-197 million yen (-1.9%)0
3Q FY2015

3Q FY2016
6

Net Sales
90,00063,46376,260(Million yen)

10,391
10,588Net sales 76,260 million yen
Year-on-Year change

52,87465,868+12,796 million yen ( +20.2% )0
3Q FY2015

3Q FY2016

Functional Food
Pharmaceuticals
7Consolidated Statements of Income (1)（Million yen）

3Q FY2015
Results
Ratio
Revenue
Net sales

3Q FY2016
Results
Ratio

YoY Change
Amt%63,463100.0%

76,260100.0%

12,796

20.2%

Operating expenses

52,874
10,58856,555

83.3%
16.7%
89.1%

65,868
10,391
58,763

86.4%
13.6%
77.1%

12,993
-197
2,208

24.6%
-1.9%
3.9%

Cost of sales

32,98652.0%

33,921

44.5%

934

SG&A expenses
R&D expenses

16,418
7,150

25.8%
11.3%

16,991
7,850

22.3%
10.3%

573
700

Operating income

6,907

10.9%

17,496

22.9%

10,588

Pharmaceuticals
Functional Food

153.3%

8

Consolidated Statements of Income (2)（Million yen）

3Q FY2015
Results
Ratio
Operating income

3Q FY2016
Results
Ratio

YoY Change
Amt%

6,907

10.9%

17,496

22.9%

10,588153.3%

757

1.2%

1,671

2.2%

914

120.8%

397

0.6%

375

0.5%

-21-5.5%

7,267

11.5%

18,792

24.6%

11,525158.6%

Extraordinary loss

--766

1.0%

766

-

Income taxes, etc

2,250

3.6%

4,750

6.2%

2,499

111.1%Net income attributableto owners of the parent

5,017

7.9%

13,275

17.4%

8,258

164.6%

Non-operating
incomeNon-operating
expenses
Ordinary income

9Consolidated Balance Sheet（Million yen）

FY2015FY2016

ChangeFY2015FY2016

Change4Q
Results

3Q
Results

Amt

4Q
Results

3Q
Results

Amt

Assets135,370

146,794

11,424

Liabilities

32,60731,603-1,004(Current assets)

85,401

95,145

9,744(Current liabilities)

20,56919,969-600(Fixed assets)

49,96851,6491,680(Long-termliabilities)

12,037

11,633-404

Net assets

102,762

115,191

12,429Total liabilities andnet assets

135,370

146,794

11,424

Total Assets

135,370

146,794

11,42410

Business Forecast
for the Year Ending March 31, 2017
Net sales+13.4%

Operating income +57.9%

100,00015,000(Million yen)

(Million yen)

95,50013,50084,2098,54900

FY2015 Results

FY2015 Results

FY2016 Forecast

Ordinary income

FY2016 Forecast

Net income attributableto owners of the parent+48.6%+42.0%

10,00015,000(Million yen)

(Million yen)

9,000

13,3006,340
8,95200

FY2015 Results

FY2016 Forecast

FY2015 Results

FY2016 Forecast

11Status of Development Pipeline

R&D Pipeline (Domestic)
Code No.
(Generic name)<Origin>NS-304(selexipag)<in-house>

Application
typeIndications

Stage

Chronic thromboembolic
pulmonary hypertension

PIII

Arteriosclerosis obliterans

PIINME

GA101(obinutuzumab)<in-license>

NME

Indolent non-Hodgkin's
lymphomaPIII

NS-065/NCNP-01<in-house>

NME

Duchenne muscular
dystrophy

PI/II

NS-580<in-house>

NME

Endometriosis

PI

NS-32
<in-license>

NME

iron deficiency anemia

PI

FY2014FY2015FY2016FY2017

PIII

PII
PII

PIII

NDA Filing
PI/IIPIPI

13

R&D Pipeline (Overseas)
Code No.
<Origin>ApplicationtypeIndications

StageChina
Preparation
for NDA

prulifloxacin<in-house>

NME

NS-065/NCNP-01<in-house>

NME

Duchenne muscular
dystrophy

USAPII

NS-018<in-house>

NME

Myelofibrosis

USAPI/ II

Bacterial infections

FY2014FY2015FY2016FY2017

Lee's Pharma
NDA Filing
PII

PI/II14

Safe Harbor Statement• Materials and information provided during this presentation may contain so-called “forward-lookingstatements.” These statements are based on current expectations, forecasts and assumptions thatare subject to risks and uncertainties which could causeactual outcomes and results to differ materiallyfrom these statements.
• Risks and uncertainties include general industry and market conditions, and general domestic andinternational economic conditions such as interest rate and currency exchange fluctuations. Risks anduncertainties particularly apply with respect to product-related forward-looking statements. Product risks
and uncertainties include, but are not limited to, technological advances and patents attained bycompetitors; challenges inherent in new product development, including completion or failure of clinical
trials; claims and concerns about product safety and efficacy; regulatory agency’s examination, obtaining
regulatory approvals; domestic and foreign social security reforms; trends toward healthcare cost
containment; and governmental laws and regulations affecting domestic and foreign operations.
• Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which
include, but are not limited to, inability to build production capacity to meet demand, unavailability of raw
materials, and competition with others.
• The Company disclaims any intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise.
• This English presentation was translated from the original Japanese version.
In the event of any inconsistency between the statements in the two versions, the statements in theJapanese version shall prevail.

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