TERUMO CORPORATION
Half Year Financial Result for
FYE/ Mar.2007

October 30, 2006
1

Sales and profits increased to a record 2-digit growth(Unit: billion yen)Interim Mar. 06

Interim Mar. 07

Rate of change

119.8

132.7

10.7%

Gross Profit (%)

65.3 (54.5%)

73.3 (55.2%)

12.2%

SGA Expenses (%)

40.3 (33.6%)

44.6 (33.6%)

10.7%

Operating Income (%)

25.0 (20.9%)

28.6 (21.6%)

14.5%

Ordinary Income (%)

25.3 (21.1%)

29.1 (21.9%)

14.8%

Interim net profit (%)

16.3 (13.6%)

18.4 (13.9%)

13.0%

Net SalesAverage rate in
the period

US$ 110 yen
EUR 136 yen

115 yen
146 yen

5.4% yen depreciation
7.7% yen depreciation
2

Net Sales (by product group)(Unit: billion yen)

119.8
18.6

10. 7%+6.2

13.8+0.2

Interim fiscal ending Mar. 2006

22.5

CV and vascular grafts(Growth rate: 21.1%)

30.3

Interventional products(Growth rate: 25.8%)

+3.9

24.1

63.4

132.7

+2.5

14.1

Home health care products(Growth rate: 1.7%)
General hospital products(Growth rate: 3.9%)

65.8

Interim fiscal ending Mar. 2007
Note: ＣＶ (cardiac & vascular products)
3

Net Sales (by Region)(Unit: billion yen)

119.8

+12.8

9.5+1.9

18.4+6.3

18.6+4.2

73.3+0.5

132.7

Consolidated Net Sales

10.7%
Growth rate:

11.4

Asia

19.4%

(12.2% )Americas 33.9%(27.6% )Europe22.6%(14.0% )Overseas 26.4%(19.0%)

24.7
22.8

73.8

Japan

Interim fiscal ending Mar. 06

39%(7.8%)

0.7%

Interim fiscal ending Mar. 07

44%

Overseas sales ratio of total net sales

Excluding impact of ForEX
4

Gross Profit Margin: 55.2%; +0.7pt
compared to previous year
Positive factors compared
to previous year: +1.3pt

Negative factors compared toprevious year: ▲0.6pt

Effect ofproduction increaseand others

Shift to higher-profit
products＋1.1＋0.2

Pricedecline▲0.6+0.7pt
5Details of SGA Expenses(Unit: billion yen)

40.3
33.6%

+4.3

7.8

7.3

+0.4

4+0.4
+0.3

3.6
13.6

11.8

Interim fiscal ending Mar. 2006

44.6
33.6%

4.4
3.8

(Increase rate)
R&D ( 5.8%)
Sales promotion andadvertising (10.7%)

Logistics ( 7.7%)+1.8+1.4

15.4
personnel (13.2%)
Others (11.9%)
13.2

Interim fiscal ending Mar. 20076

Forecast for the Full Fiscal Year Revised Upward(Unit: billion yen)Mar. 2007

RevisedIncrease

267.0

273.0

+６.０

Operating Income (%)

54.7 (20.5%)

57.5 (21.1%) +２.８

Ordinary Income (%)

54.2 (20.3%)

57.5 (21.1%) +３.３

Net Income (%)

33.7 (12.6%)

37.0 (13.6%) +３.３

Net Sales

In-houseexchange rate

Previously announced

US$ 110 yen
EUR 135 yen

US$ 114 yen
EUR 145 yen
7About first half performance◆Increased international sales driven by the growth of cardiac
and vascular products contributed to corporate growth◆Domestic performance affected by NHI price revisions but still
recovering, thanks to measures taken to address market changes＜Domestic market changes＞‐Key acute care hospitals shift to DPC‐Increase of specialist hospitals※DPC(Diagnosis Procedure Combination)‐Policies to promote home care for future development
8

DPC-applied hospitals drasticallyincreasing now and in the future
TheThe key
key isis thethe strategy
strategy inin view
view ofofabout
about 500,000
500,000 beds
beds atat current
current andandpotentialpotential DPC
DPC hospitals
hospitals•DPC

Mar. 06 orbefore

Apr. to Jul. 06

DPC total

Potential DPC hospitals

144 hospitals

About
95,000 beds

216 hospitals

About
90,000 beds

360 hospitals

About
190,000 beds

1,700 hospitals

About
300,000 beds
9

Changes in hospitals
after introducing DPC (1)Standardization and streamlining of products
GeneralGeneralI.V.
I.V.solution
solution(maintenance(maintenancefluidfluid))

GeneralGeneralI.V.
I.V.solution
solution((Ringer’sRinger’slactatelactate))

1.5 times
1.3 times<Terumo sales comparison> Relative ratio of sales during t his interim period
when the sales in the same period of the previous year is set to “1” (in Japan)
10Changes in hospitals
after introducing DPC (2)Increase of risk management products
Risk
Riskmanagement
managementmedical
medicalproducts
products

Large-volume
Large-volumeFULCALIQFULCALIQ

50 times
1.2 times<Terumo sales comparison> Relative ratio of sales during this interim period
when the sales in the same period of the previous year is set to "1“ (in Japan)
11Addressing changes/future initiatives◆Increasing DPC hospitals and expanding business opportunities- Take advantage of “safety improvement” and “higher efficiency of operations”- Apply “DPC effects” to other acute care hospitals◆Increasing special hospitals- Approach to specialist hospitals utilizing interventional and diabetes careproducts◆Expecting for home medical care extension- Grasping the impact of guiding policies and development of new business12Topics13

Nobori clinical trial, interim report
Excerpts from document published at TCT06

Late Loss *)Restenosis
Stent thrombosis

NoboriControl group

0.15mm0.32mm0%0%0%0%* Optimum intima hypertrophy is said to be 0.10 to 0.20mm
Remarks:
・Better than the results of control group
・Stent thrombosis didn't occur
・In terms of safety, effects of biodegradable polymer is expected
14

"DuraHeart" LVAS
■ Europe:
・2Q, 2006
・4Q, 2006
・2007

Clinical trial completed
Scheduled to obtain CE markCommercialization■U.S.:
・2007 Application for clinical trial planned■ Japan:・In preparation process for clinical trial

DuraHeart15Interventional business in the U.S.
Estimated annual sales: 13.5 billion yen(billion yen)4(Planned)(Planned)

3Mar. 06

2Mar. 07

10１Q

２Q

３Q

４Q
16

Cerebral aneurysm coil (MicroVention)
Sales have been steady・Interim period results (Global): 2.2 billion yen(Annual plan: 5 billion yen)・The coil market has enjoyed more than 15% yearly growth.

Coated coil・High filling factor and cure rate are expected

Platinum bare coil・Flexibility and high operability

17

Sales of Vascutek products havesteadily grown(Unit: billion yen)

1098765432
10Trend in net salesof Vascutekproducts

9.5 billion yen

Stent graft (Anaconda)■Europe: Launched in April 2005(M$)
Sales plan (2006): 0.6 billion yen■U.S.: Clinical test stage

5 billion yen(in global)

When purchased(Jan. to Dec. 2001)

Mar. 07 (Planned)
18Overview of Terumo's bloodtransfusion business
Blood bags

Market of Blood bags
(Worldwide: 22 billion yen)
Others ３８％

Baxter
３０％

Leukocyte removal filter

Fresenius ８％（Terumo estimate ）Terumo ２４％

Apheresis systems and bloodcollecting kit
19

About contrast medium(Angiographic catheters)
Results during the interim period: 0.8 billion yen(Sales plan for 2006 in Japan: 1.6 billion yen)
20

Sales of diabetes care products still growing(Unit: billion yen)
Market scale (glucose monitors) (Japan)

Market scale (blood glucosemonitors)
CAGR: 6.1%

10940
8730

Net sales of Terumo's diabetes
care products
CAGR: 21.2%

20

65

Mar. 04

Mar. 05

Sales of our diabetes care products (Japan)

50

Mar. 06■Market share of blood glucose monitors in Japan : 22%■Sales of NANOPASS (needle with least pain) fully-fledged21

Summary◆Sales and profits both achieved two-digit

growth rates◆Domestic operation focusing on
addressing the changes in the market◆International sales steadily growing◆New key product developments inprogress

22

IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: Kazuya_Haraguchi@terumo.co.jp
This document contains forward-looking statements that reflect
management’s current views with respect to certain future events andfinancial performance. Actual results may differ materially from thoseprojected or implied in the forward-looking statements and from historical
trends. Furthermore, certain forward-looking statements are based uponassumptions of future events that may not prove to be accurate. Factorsthat could cause actual results to differ materially from those projected orimplied in any forward-looking statements include, but are not limited to,changes in overall economic conditions, fluctuations of foreign exchange
rates, and intensifying price competition in the markets for our products.
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