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Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2014 (under Japan GAAP)
Company name: Nichi-Iko Pharmaceutical Co., Ltd. Managing Executive Officer and General Manager of Management Division Scheduled date of filing of quarterly report: Holding of quarterly financial presentation meeting:
(Note that all amounts have been rounded down to the nearest one million yen.)
1.
Consolidated Financial Results for the Second Quarter of Fiscal Year Ending
March 31, 2014 (From April 1, 2013 to September 30, 2013)
(Percentage figures represent changes from the same period of the previous fiscal year) Second Quarter of Fiscal Year Ending March 31, 2014: 2,366 million yen (7.2%) Second Quarter of Fiscal Year Ended March 31, 2013: 2,208 million yen (-%) Second Quarter of Fiscal Year Ending March 31, 2014: 51,077 million yen Fiscal Year Ended March 31, 2013: 48,767 million yen
2. Dividends


(Note)
Revisions to recently announced dividends forecast: None.

Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31,
2014 (From April 1, 2013 to March 31, 2014)
(Percentage figures represent changes from the same period of the previous fiscal year)
(Note)
Revisions to recently announced forecast of financial results: Yes.

(Note)
For details, please refer to "(3) Explanation of Forecast of Consolidated Financial Results
and Other Forward-looking Statements" in "1. Qualitative Information on Financial Results
for the Quarter under Review" on page 3 of the Attachment.
*Notes
(1)
Changes in significant subsidiaries during the consolidated cumulative quarter under review (changes in specified subsidiaries resulting in change in scope of consolidation) (Note) For details, please refer to "(1) Changes in scope of consolidation or scope of application of equity method" under "2. Matters Related to Summary Information (Notes)" on page 3 of the Attachment. Application of accounting treatment specific to preparation of quarterly consolidated financial (Note) For details, please refer to "(2) Application of Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements" in "2. Matters Related to Summary Information (Notes)" on page 4 of the Attachment. Changes in accounting policies and changes in accounting estimates and restatement of prior period financial statements after error corrections Changes in accounting policies due to revisions to accounting standards and other regulations, etc.: Changes in accounting policies due to other reasons: No Restatements of prior period financial statements after error corrections: Total number of issued shares (common stock) Total number of issued shares as of the end of the period (including treasury Number of treasury stock as of the end of the period: Average number of shares during the period (cumulative quarter): (Note) Number of treasury stock as of the end of the period includes shares held by Employee Shareholding Incentive Plan. * Presentation of implementation status for quarterly review procedures

This quarterly financial summary is not included in quarterly review procedures under the
Financial Instruments and Exchange Act. The reviewing procedures for quarterly
consolidated financial statements under the Financial Instruments and Exchange Act have not
been completed at the time of release of this quarterly financial summary.
* Explanation on the appropriate usage of forecast of financial results, and other specific

(Considerations on forward-looking statements)
The forward-looking statements including forecast of financial results contained in these
materials are based on the information currently available to the Company and certain
assumptions which are regarded as legitimate. As such, they do not constitute the
Company's guarantee that such results would be achieved. Actual business and other results
may differ substantially from the forecasts provided in these materials as a result of various
factors. For description of the conditions underlying the forecast of financial results and
considerations on usage of forecast of financial results, please refer to "(3) Explanation of
Forecast of Consolidated Financial Results and Other Forward-looking Statements" in "1.
Qualitative Information on Financial Results for the Quarter under Review" on page 3 of the
Attachment.


1. Qualitative Information on Financial Results for the Quarter under Review. 2 (1) Explanation on Operating Results . 2 (2) Explanation on Financial Position. 3 (3) Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements . 3 2. Matters Related to Summary Information (Notes). 3 (1) Changes in Scope of Consolidation or Scope of Application of Equity Method . 3 (2) Application of Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements. 4 (3) Changes in Accounting Policies and Changes in Accounting Estimates and Restatement of Prior Period Financial Statements after Error Corrections. 4 3. Quarterly Consolidated Financial Statements . 5 (1) Quarterly Consolidated Balance Sheet . 5 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income . 7 (Second Quarter Consolidated Cumulative Period) (Quarterly Consolidated Statements of Income) . 7 (Quarterly Consolidated Statements of Comprehensive Income) . 8 (Quarterly Consolidated Statements of Income) . 9 (Quarterly Consolidated Statements of Comprehensive Income) . 10 (3) Quarterly Consolidated Statements of Cash Flows . 11 (4) Notes to Quarterly Consolidated Financial Statements . 13 (Notes on premise going concern) . 13 (Notes on significant changes in the amount of shareholders' equity). 13 Qualitative Information on Financial Results for the Quarter under Review Japanese economy during the second quarter consolidated cumulative term showed uptick in domestic business confidence because of excess revision of the yen appreciation led by Prime Minister Shinzo Abe's economic policies and bolstering domestic demands, etc. by increasing public spending. In generic pharmaceutical industry, "Vision for the Pharmaceutical Industry - 2013", announced by Ministry of Health, Labour and Welfare on June 2013, indicates, as future visions, (i) the manufacturers to work more comprehensively on issues such as stable supply, securing of quality reliability and information service, (ii) the need to enter into a new field such as biosimilar development, since the focus on lapse of patent, etc. with respect to original drugs tends to shift from low molecular medicine to biomedicine, and (iii) the need to supply overseas the high quality products of Japan and the need to have a consistent value chain from pharmaceutical ingredients to preparations, since the excursion to the overseas market is inevitable. The Company is pursuing a path as a desired manufacturer of generic drugs, by increasing production capacities, developing biosimilar and supplying high quality drugs of the Company to Southeast Asia. In these circumstances, Fexofenadine Hydrochloride tablets 30mg "SANIK" and 60mg "SANIK" (manufacturer and seller: Sanofi Nichi-Iko K.K.), the first auto-generic drug in Japan, has the identical pharmaceutical ingredients, additive and manufacturing method to the original preparation and is the only preparation in Japan with permission to patent rights from the Sanofi Group. It is listed on the supplemental official drug list in June 2013 and is exclusively sold by the Company. Also, the Company has agreed in principle on September 2013, to succeed the business of the Fuji Plant, one of the manufacturing bases of Astellas Pharma Tech, Co., Ltd. (manufacturing subsidiary of Astellas Pharma Inc. in Japan) from April 1, 2014. The Company believes that it is able to obtain significant results in the future by ensuring stable supplies from further increasing the production capacity and by merging the high quality control capability and technologies of the Fuji Plant into the Group. In addition, the Company acquired 12.6% of the shares of Binex Co., Ltd., a company which manufactures biosimilar in Korea, on October 2013 for the purpose of accumulating the know-how on the method of manufacturing biosimilar and ensuring stable manufacturing bases thereof. As the result, the results of the second quarter consolidated cumulative term showed net sales of 49,526 million yen (7.9% increase from the same period of the previous fiscal year), operating income of 3,718 million yen (1.3% increase from the same period of the previous fiscal year), ordinary income of 3,613 million yen (3.1% decrease from the same period of the previous fiscal year), net income for the quarter of 2,244 million yen (2.8% increase from the same period of the previous fiscal year). As of the end of this second quarter under review, total assets on a consolidated basis increased 3,377 million yen from the previous fiscal year-end and ran up to 106,298 million yen. This was attributable to increase in cash and deposits of 2,011 million yen, increase in inventories assets of 1,487 million yen and increase in investment securities of 1,150 million yen. Liabilities on a consolidated basis increased by 1,042 million yen from the previous fiscal year-end and ran up to 55,153 million yen, due to increase in short-term loans payable of 6,203 million yen, decrease in accounts payable (notes and accounts payable, and electronically recorded debts) of 3,389 million yen, decrease in other current liabilities of 1,420 million yen caused by decrease in other payable, etc. Net assets on a consolidated basis increased 2,335 million yen from the previous fiscal year-end and ran up to 51,145 million yen, due to increase in retained earnings of 1,923 million yen and recording foreign currency translation adjustment of 368 million yen. Explanation of Forecast of Consolidated Financial Results and Other Forward-looking Statements In consideration of financial results for this second quarter consolidated cumulative period and expected increase of research and development expenses in the future, forecast of consolidated financial results for the fiscal year ending March 31, 2014 is revised to represent operating income of 8.3 billion yen (0.7 billion yen decrease from the forecast announced on May 14, 2013), ordinary income of 8.0 billion yen (0.8 billion yen decrease from the above-mentioned forecast), net income of 5.2 billion yen (0.3 billion yen decrease from the above-mentioned forecast), respectively. Net sales forecast is not revised from 103.0 billion yen, the previous forecast. This forecast of consolidated financial results is based on the information currently available to the Company at the time of release of these materials. Actual financial results may differ from the forecasts as a result of various factors. Matters Related to Summary Information (Notes) Changes in Scope of Consolidation or Scope of Application of Equity Method Significant change in scope of consolidation Significant change in scope of application of equity method EMI Co., Ltd. (non-consolidated subsidiary), Active Pharma Co., Ltd. (affiliate), Sanofi Nichi-Iko K.K. (affiliate), Aprogen Inc. (affiliate) are included in scope of application of equity method from the consolidated first quarter. Application of Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements Tax expenses are calculated by multiplying the net income for the term before provision for income taxes by an estimated effective tax rate that is reasonably estimated after applying tax effect accounting to the net income before provision for income taxes for the consolidated fiscal year including the second quarter under review. Income taxes - deferred are included in total income taxes and recorded. Changes in Accounting Policies and Changes in Accounting Estimates and Restatement of Prior Period Financial Statements after Error Corrections Quarterly Consolidated Financial Statements Current portion of long-term loans payable Valuation difference on available-for-sale securities 113,357 Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income (Quarterly Consolidated Statements of Income) (Second Quarter Consolidated Cumulative Period) Selling, general and administrative expenses Reimbursement for joint development cost Loss on valuation of investment securities Net income before provision for income taxes (Quarterly Consolidated Statements of Comprehensive Income) (Second Quarter Consolidated Cumulative Period) Valuation difference on available-for-sale affiliates accounted for using equity method (Comprehensive income attributable to:) (Quarterly Consolidated Statements of Income) Selling, general and administrative expenses Reimbursement for joint development cost Loss on valuation of investment securities Net income before provision for income taxes (Quarterly Consolidated Statements of Comprehensive Income) Valuation difference on available-for-sale affiliates accounted for using equity method (Comprehensive income attributable to:) Quarterly Consolidated Statements of Cash Flows Net income before provision for income taxes Increase (decrease) in allowance for doubtful Increase (decrease) in allowance for sales Increase (decrease) in allowance for bonuses Equity in (earnings) losses of affiliates (Increase) decrease in accounts receivable (2,919,020) (Increase) decrease in inventories assets Net cash provided by (used in) operating Acquisition of property, plant and equipment Acquisition of stocks of subsidiaries and Net cash used in investing activities (3,475,264) Net cash provided by (used in) financing Effect of exchange rate change on cash and cash equivalents (402) Net increase (decrease) in cash and cash equivalents (1,510,869) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of the year Notes to Quarterly Consolidated Financial Statements (Notes on significant changes in the amount of shareholders' equity) Not

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