Financial Results for FYE 3/2008 (Consolidated)

April 30, 2008

Name of listed company: TERUMO CORPORATION( URL http://www.terumo.com/ )Company code number: 4543
Representative:
Akira Takahashi, President
Please address all communications to:
Shouji Hatano, General Manager, Corporate Communication Dept.
Adoption of U.S. accounting standards [Yes/No]: No

Exchange where listed: TSE
Location of headquarters (prefecture):
Tokyo

Phone: +81 / 3-3217 - 6550

1. Consolidated Financial Highlights for the year ended March 2008
(From April 1, 2007 to March 31, 2008)(1) Consolidated financial results(Note: The amounts shown below ignore values of less than a million yen)

Net sales

Operating income

Ordinary income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

306,381
276,439

10.8
11.9

66,94258,45514.5
21.1

64,19858,025

10.6
18.6

Year ended March, 2008
Year ended March, 2007

Net income(Millions of yen)%

43,382
37,232

16.5
14.7

Year ended March, 2008
Year ended March, 2007

Net income per
Ordinarystockholders' income per
equitytotal assets

Net income per share,
fully diluted

Net income per share
(Yen)

(Yen)

220.30185.00

%

%

%

-

15.0
13.2

16.5
16.1

21.8
21.2

Equity ratio

Book value per share(Notes) 1. Investment income for equity method:
March 2008: 30million yen March 2007: 135million yen(2) Consolidated financial position
Total assets
March 31, 2008
March 31, 2007

Net assets(Millions of yen)

(Millions of yen)

410,918
367,147

288,867
289,248

%

(Yen)

70.3
78.8

1,489.10
1,454.71(Notes) 1.Number of shares outstanding at end of period (consolidated):
March 2008: 193,929,531 shares March 2007: 198,788,606 shares(3) Consolidated statements of cash flows
Cash flows fromoperating activities
Year ended March, 2008
Year ended March, 2007

Cash flows fromfinancing activities

Cash flows frominvesting activities

Cash and cash equivalents,
end of period(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

69,683
43,123(28,069)(19,917)

3,081(28,637)

85,37743,0492.Dividends

Year ended March, 2007
Year ended March, 2008
Year ending March, 2009 (forecast)at 1st half end

Cash dividends per shareat fiscal year end

total

(Ｙen)

(Ｙen)

(Ｙen)

12.00
14.00
16.00

16.00
18.00
16.00

28.00
32.00
32.00

3. Consolidated forecasts for the year ending March 2009 (From April 1, 2008 to March 31, 2009)
Net sales

Half year ended September, 2008

Year ended March, 2009

Operating income

Operatingincome per
Net sales

Ordinary income

Net income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

155,000
318,000

2.8
3.8

34,00068,0001.4
1.6

34,00068,0000.1
5.9

22,50045,000△ 1.9
3.7(N.B.) Estimated earnings per share (full year): 232.04 yen

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to differ materially from that anticipated in these statements.

4. Financial Statements(1) Consolidated Balance Sheet(Millions of yen)March 31, 2007

March 31, 2008

AmountAmount(Assets)
I Current assets

Changes%
171,57646.7%%
218,072

53.1%%
46,495

Cash and cash equivalents

44,53687,34342,806

Trade receivable notes/accounts

70,04969,048(1,001)Inventories

45,631

48,738

3,107

Deferred taxes assets - short

7,519

8,998

1,479

Other current assets

4,733

4,744

10

Allowance for doubtful debts

(894)

(801)

27.1%

93

II Fixed assets

195,570

53.3%

192,84646.9%(2,724)(1.4%)

1.Tangible assets

115,643

31.5%

112,74427.4%(2,899)(2.5%)

Buildings and structures

45,092

44,121(970)

Machinery and transportation equipment

32,00435,602

3,598

Land

20,296

20,404108

Construction in progress

11,493

6,412(5,080)

Other tangible assets
2.Intangible assets
Goodwill
Other intangible assets
3.Investments and other assets

6,756
40,524

6,202
11.1%

35,046(554)
8.6%30,202

5,477
39,40235,12544,976

(555)
10.9%

5,573

Investment in securities

34,802

40,527

Deferred tax assets - long

1,920

1,878

(42)

Other investments and other assets

2,679

2,570

(108)

Total assets

367,147

100.0%

410,918(13.3%)(4,843)

4,922
10.7%

(5,398)

14.1%

5,724

100.0%

43,771

11.9%

(Millions of yen)March 31, 2007

March 31, 2008

AmountAmount(Liabilities)
I Current Liabilities
Trade notes/accounts payable

Changes%
65,891

17.9%%
114,457

27.9%%
48,56625,72527,245

1,520

Short-term bank loans

236

35,00034,763

Income taxes payable

8,694

17,802

9,108

Reserve for employees bonuses

4,433

4,782

348

Reserve for directors bonuses

169

189

20

Diferred tax liabilities - short

197

197

Notes/Accounts payable-trade for Machinery & Equipment

5,906

5,646

(259)

Other current liabilities

20,726

23,593

2,866

II Long-term Liabilities
Long-term bank loans

-

73.7%

12,007

3.3%

7,593

436

1.8%

(4,414)

Deferred tax liabilities - long

1,651

36

(1,615)Reserve for retirement allowances

6,506

4,263

(2,242)

728

728

-

Reserve for retirement benefits for directors and corporate auditors
Other long-term liabilities

2,683(36.8%)

(436)

-

2,565

(118)

Total Liabilities

77,89921.2%

122,05129.7%

44,151

56.7%

I Shareholders' equity

279,50776.1%

291,62471.0%

12,116

4.3%

Capital stock

38,716

38,716-

Capital surplus

59,03059,030-Retained earnings

215,213

252,667

37,453

Treasury stock(33,453)(58,790)(25,337)

II Evaluation difference and foreign currency exchange adjustments
Evaluation difference of investment securities
Foreign currency translation adjustments
III Minority interests

9,672

2.7%

(2,843)(0.7%)(12,516) (129.4%)

8,947

5,026

(3,921)725(7,869)(8,595)

68

0.0%

87

0.0%

19

28.4%

Total net assets

289,24878.8%

288,867

70.3%

(380)

(0.1%)

Total liabilities, net assets

367,147

100.0%

410,918

100.0%

43,771

11.9%

(2) Consolidated Statement of Income(Millions of yen)
Year ended

Year ended

March 31, 2007

March 31, 2008

AmountChangesAmount%%%I Net sales

276,439100.0%

306,381100.0%

29,942

10.8%

II Cost of sales

123,11244.5%

138,17945.1%

15,067

12.2%

153,32655.5%

168,201

54.9%

14,874

9.7%

94,871

34.3%

101,259

33.1%

6,387

6.7%

58,45521.2%

66,942

21.8%

8,487

14.5%

166

6.6%

Gross Profit on Sales
III Selling, General and Administrative Expenses
Operating Profit
IV Non-operating Income
Interest income

719

1,314

595

Dividend income

261

488

227

Royalties

53

202

149

Foreign exchange profit

628

Equity in earnings of unconsolidated companies

135

Other non-operating income

708

-

(628)

30
2,506

0.9%

(105)

636

2,673

0.9%

(71)

V Non-operating Expenses
Interest expenses

165

Sales discount

451

514

62

-

3,524

3,524

Loss on disposal of inventories

1,241

383

(858)

Other non-operating expenses

1,077

Foreigh excchange loss

Ordinary Profit

320

2,936

1.1%

58,025

21.0%

154

674

5,416

1.7%

64,198

21.0%

(403)

2,479

84.4%

6,173

10.6%

VI Extraordinary Profit
43

9Gain on reversal of allowance for bad debt

Gain on sales of fixed assets

-

21

21

Adjustment to allocate for acquisition of overseas subsidiary

-

438

438

Gain on relating to acquisition of newly affiliated company

-

43

0.0%

(33)

1,059

1,529

0.4%

1,059

1,485 3,395.4%

Ⅶ Extraordinary Losses
Loss on disposal of fixed assets

195

Loss on restructuring in the subsidiary

60

-

(60)

Directors' retirement fee

12

-

(12)

225

29

Provision of allowance for retirement benefits for directors andcorporate auditors
Impairment loss

728-

Income Before Taxes
Corporate, Inhabitant and Enterprise Taxes

17,002

Deferred Taxes (reduction)

2,821

Minority Interest Income (loss) of consolidated companies
Net Income for the Period

996

0.4%

57,072

20.6%

156

(728)
382

0.1%

65,34621.3%

22,41019,824

7.1%

(475)

156

(614)

(61.6%)

8,273

14.5%

2,110

10.6%

5,408
21,935

7.1%(3,297)

16

0.0%

28

0.0%

12

78.0%

37,23213.5%

43,382

14.2%

6,149

16.5%

(3) Statement of changes in net assets

Year ended March 2007
Beginning of period
Changes during this fiscal accounting period
Delivery of dividends
Directors' bonuses
Interim net income
Acquisition of treasury stock
Changes of items other than capital stock (net)Total changes during this fiscal accounting periodEnding of period

Year ended March 2007
Beginning of period
Changes during this fiscal accounting period
Delivery of dividends
Directors' bonuses
Interim net income
Acquisition of treasury stock
Changes of items other than capital stock (net)Total changes during this fiscal accounting periodEnding of period

Year ended March 2008
Beginning of period
Changes during this fiscal accounting period
Delivery of dividends
Interim net income
Acquisition of treasury stock
Changes of items other than capital stock (net)Total changes during this fiscal accounting periodEnding of period

Year ended March 2008
Beginning of period
Changes during this fiscal accounting period
Delivery of dividends
Interim net income
Acquisition of treasury stock
Changes of items other than capital stock (net)Total changes during this fiscal accounting periodEnding of period

Capital stock
38,716

Capital surplus
59,030(Millions of yen)
Shareholders' equity
Retained earnings
Treasury stock
Shareholders' equity total
183,391(13,449)
267,689(5,278)(132)
37,232

38,71659,03031,821
215,213(20,004)(5,278)(132)
37,232(20,004)(20,004)(33,453)

11,817
279,507

Evaluation difference and foreign currency exchange adjustments
Evaluation difference ofForeign currency
Evaluation difference andinvestment securities
translation adjustments
foreign currency exchange
adjustments total
7,367(1,747)
5,619

1,580
1,580
8,947

Capital stock
38,716

Capital surplus
59,030

2,472
2,472
725

4,052
4,052
9,672

59,03037,453
252,667(25,337)(5,928)43,382(25,337)(25,337)(58,790)

12,116291,624

Evaluation difference and foreign currency exchange adjustments
Evaluation difference andEvaluation difference ofForeign currency
investment securities
translation adjustments
foreign currency exchange
adjustments total
9,672
8,947
725

(3,921)(3,921)
5,026

Net assets
total
273,359

18
18
68(5,278)(132)
37,232(20,004)
4,071
15,888289,248

Minority
interests
68

Net assets
total
289,248

19
19
87(5,928)43,382(25,337)(12,496)(380)
288,867(Millions of yen)
Shareholders' equity
Retained earnings
Treasury stock
Shareholders' equity total
215,213(33,453)
279,507(5,928)43,382

38,716

Minority
interests
49(8,595)(8,595)(7,869)(12,516)(12,516)(2,843)

(4) Consolidated Statements of Cash Flows(Millions of yen)I

Year ended

Year ended

March 31, 2007

March 31, 2008

Income before taxes

57,072

65,346

Depreciation and amortization

14,340

16,639-156

Amortization of goodwill

1,173

1,173

Investment income for equity method

(135)

(30)

Increase(decrease) in reserve for retirement allowance(669)(2,242)

Increase(decrease) in allowance for retirement benefits for directors

728-

Increase(decrease) in allowance for bad debt

(53)

(75)

Increase(decrease) in reserve for directors bonuses

169

20

Interest income and dividend income(980)(1,803)

Interest expenses

165

320

Exchange loss (gain)

560

463

Loss on disposal of fixed assets

195

225

Gain on sales of fixed assets

(43)

(9)

(5,000)-Cash flows from operating activities

Impairment loss

Payment Cash contribution of securities to retirement benefits
Adjustment to allocate for acquisition of overseas subsidiary

-

(438)

Gain on relating to acquisition of newly affiliated company-(1,059)Decrease(increase) in trade receivable(4,471)(1,218)Decrease(increase) in inventories(3,080)(5,080)

Increase(decrease) in trade payable

665

2,698

Bonus for the board members

(132)

-

Others

1,478

5,731

Subtotal

61,98280,816

Gain of loss interests and dividends

1,116

1,904

Interest paid

(165)

(244)

Corporate tax paid

(19,810)(12,792)

Cash flow provided by operating activities

43,123

69,683(1,487)(5,831)

II Cash flows from investing activities
Payment for making fixed-term deposits
Refund of cash in bank
Capital expenditure

-

5,354

(17,202)(15,954)

Proceeds from sales of tangible assets

191

9Capital expenditure for intangible assets

(447)

(453)

Payments for purchase of marketable securities(2)(12,194)

Proceeds from sales of marketable investments

-

1,000

Proceeds from Assignment of goodwill

40-

Payments for Assignment of goodwill

(799)

-

Payment for acquisition newry consolidated company

(209)

-

(19,917)(28,069)(3,787)

34,771

Net cash used in investing activities
III Cash flows from financing activities
Increase(decrease) in short-term debt
Increase due to long-term debt

432

-

-

(423)

Buyback of treasury stock(20,004)(25,337)

Dividends paid

(5,278)(5,928)Net cash used in financing activities(28,637)

3,081

516

(2,366)

Repayment of long-term debt

IV Effect of exchange rate changes
V Net increase(decrease) in cash and cash equivalents(4,914)42,328VI Cash and cash equivalents at beginning of period

47,96343,049

Ⅶ Cash and cash equivalents at end of period

43,04985,377

(5)Notes

Relating to balance sheet(Millions of yen)

Accumulated depreciation of tangible assets

March 31, 2007

March 31, 2008

196,452

202,058

Ending balance of investment in securities to nonconsolidated subsidiaries and related companies(Millions of yen)

Investment in securities

March 31,2007

March 31,2008

344

2,751

Matured bills as of March 31
The last day of last accounting period was a holiday of banking institutions,and the bills reaching maturity
on Mar 31 2007,mentioned below, are included in the ending balance of this interim accounting period.
(Millions of yen)

Trade notes receivable

March 31,2007

March 31,2008

415-

Relating to statement of income
I Main items among selling, general and administrative expenses(Millions of yen)March 31,2007

March 31,2008

Promotion and Advertisement fee

10,236

Transportation and Packaging cost

7,997

10,4508,983

Salaries

22,07424,442

Provision for bonuses

4,755

5,338

Pension

1,611

1,592

R&D expenditure

16,792

15,754
3,369

Depreciation

3,027

Provision of the reserve for directors' bonuses

169

189

II R&D expenditure

16,792

15,754

III Itemized statement of Gain on sales and Loss on disposal of assets
Gains on sales of fixed assets
March 31,2007

Land
Machinery and transportation equipment
Other tangible fixed assets
Total Gains on sales of fixed assets

33
9
0
43

(Millions of yen)March 31,2008

90
9Loss on disposal of fixed assets(Millions of yen)March 31,2007

Land
Buildings and structures
Machinery and transportation equipment
Other tangible fixed assets
Total Loss on disposal of fixed assets

12
18
68
95
195

March 31,2008

33
134
57
225

IV Impairment loss
(Millions of yen)
Location
Application
Assortment

March 31,2007

March 31,2008-

Fujinomiya, Shizuoka
Transfusion-related eqipment
Buildings andstructures
40
Machinery andtransportation
114
Other tangible
assets1
156

Impairment Amount-Amount-Relating to statement of cash flows
Reconciliation of cash and cash equivalents on the annual consolidated balance sheet.
(Millions of yen)March 31,2007

Cash on hand and in banks
Time deposits, bonds and other with origina
maturity exceedinga three-month period
Cash and cash equivalents

March 31,2008

44,53687,343(1,487)43,049(1,965)85,377

Assets and liabilities of the newly consolidated company at the acquisition date,
the acquisition price and the net disbursement

Year ended
March 31, 2007

(Millions of yen)
Year ended
March 31, 2008

Salymed. LTDA
Current assets
Fixed assets
Goodwill
Current liabilities
Fixed liabilities
Acquision priceCasn and cash equivalent
Net disbursement

467
3
(58)
(93)
(18)
300
(90)
209

-

Year ended
March 31, 2007

(Millions of yen)
Year ended
March 31, 2008

286
100
411
799
799

-

Year ended
March 31, 2007

(Millions of yen)
Year ended
March 31, 2008

4
35
40
40

-

Increase of assets and liabilities from the acquisition of operation

Current assets
Fixed assets
Goodwill
Other intangible assets
Assets total
Acquision priceDecrease of assets and liabilities from the transfer of operation

Current assets
Fixed assets
Assets total
Income from the transfer of operation

Relating to Statement of changes in net assets(1) Year ended March 2007
I Category and total number of issued stock and treasury stock(Thousand)

Beginning balance

Increase during
this fiscal period

Issued stock : Common stock
210,876
Treasury stock : Common stock
7,848
Note : The increase or treasury stock is from taking up odd stock.

Decrease during
this fiscal period

4,238

Ending balance-

210,876
12,087

II Items on dividend
Delivery of dividends(Resolution)
Annual meeting of stockholders held on June29, 2006
A board of directors held on October 30,2006

Category of stock

Dividend(millionsyen)

Dividend
per share(yen)

Dividend record date

Effective dateCommon stock
Common stock

2,842
2,436

14
12

March 31,2006
September 30,2006

June 29,2006
December 8,2006

Dividend(millionsyen)The
original
capital of
dividend

Dividend
per share(yen)

Earned3,180 surplus

16

Devidends recorded in this fiscal period but effective in the next period(Resolution)
Annual meeting of stockholders held on June
28, 2007

Category of stock

Common stock

Dividend record date

Effective date

March 31,2007

June 29,2007(2) Year ended March, 2008
I Category and total number of issued stock and treasury stock(Thousand)

Beginning balance

Increase during
this fiscal period

Issued stock : Common stock
210,876
Treasury stock : Common stock
12,087Note : The increase or treasury stock is from taking up odd stock.

Decrease during
this fiscal period

4,859

Ending balance-

210,876
16,946

II Items on dividend
Delivery of dividends(Resolution)
Annual meeting of stockholders held on June
28, 2007
A board of directors held on October 30,2007

Category of stock

Dividend(millionsyen)

Dividend
per share(yen)

Dividend record date

Effective dateCommon stock
Common stock

3,180
2,747

16
14

March 31,2007
September 30,2007

June 29,2007
December 10,2007

Dividend(millionsyen)The
original
capital of
dividend

Dividend
per share(yen)

Earned3,490 surplus

18

Devidends recorded in this fiscal period but effective in the next period(Resolution)
Annual meeting of stockholders held on June27, 2008

Category of stock

Common stock

Dividend record date

Effective date

March 31,2008

June 30,2008

5. Segment Information(1) Segment by business(Millions of yen)
Year ended
March 31, 2008

Year ended
March 31, 2007
General hospital products
Sales
Operating income
Operating income ratio
Catheter and Cardiovascular system
Sales
Operating income
Operating income ratio
Home health care products
Sales
Operating income
Operating income ratio

138,232
26,49619.2%

150,955
31,74321.0%

109,434
34,42931.5%

124,754
37,85630.3%

28,772
7,901
27.5%

30,6708,911
29.1%(2) Sales results by product segment
Year ended
March 31, 2007
AmountDisposable medical equipment
Pharmaceuticals
Blood transfusion system
General hospital products
Catheter system
Cardiovascular system
Vascular grafts
Catheter and Cardiovascular system
CAPD system
Diabetes care products
Other productsHome health care products
Total

%

(Millions of yen)
Year ended
March 31, 2008
Amount%79,20728.6%

85,91428.0%

38,93714.1%

41,49613.6%

20,087

7.3%

23,544

7.7%

138,23250.0%

150,955

49.3%

63,97023.1%

77,08425.2%

35,87413.0%

38,122

12.4%

9,588

3.5%

9,547

3.1%

109,434

39.6%

124,754

40.7%

7,216

2.6%

7,109

2.3%

12,182

4.4%

14,149

4.6%

9,374

3.4%

9,411

3.1%

28,772
276,43910.4%
100.0%

30,670306,38110.0%
100.0%

Note ) Main Products belonging to each product segment
Product segment

Main Products

Disposable medical equipment

Syringe, Needle, Solution Administration set, I.V.catheter,
Blood collection tube, Electronic medical devices, etc.
I.V.solutions, Prefilled syringe, Nutritional products, etc.

Pharmaceuticals
Blood transfusion system
Catheter system
Cardiovascular system
Artificial vascular grafts
CAPD system
Diabetes care products
Other products

Blood bags, medical electronic devices for blood collection,
etc.
PTCA dilation catheters, Coronary stent, Guide wires,
Angiographic catheters, Cerebral aneurysm coils,etc.
Roller pump, Hollow fiber oxygenators, Blood circuit, etc.
Artificial vascular grafts
Dialysis solution, etc.
Blood glucose monitor, etc.
Home oxygen system, Home nutritional products,Digital
Thermometers, Electronic sphygmomanometers, etc.

(3) Sales results by region
Year ended
March 31, 2007
AmountJapan
EuropeAmerica
Others
Total%(Millions of yen)
Year ended
March 31, 2008
Amount%152,466

55.2%

162,45053.0%

48,371

17.5%

56,772

18.5%

52,741

19.1%

58,801

19.2%

22,859276,4398.2%
100.0%

28,357306,3819.3%
100.0%