Half Year Financial Results for FYE 3/2008 (Consolidated)

October 29, 2007

Name of listed company

Exchange where listed: TSE

Company code number
Representative::TERUMO CORPORATION( URL http://www.terumo.com/ ): 4543: Akira Takahashi, President

Please address all communications to
Phone:Kunio Kimishima, General Manager, Corporate Communication Dept.
: +81 / 3-3217 -6550: No
Adoption of U.S. accounting standards [Yes/No]
Filing date of semi annual financial statements :December 27, 2007
:December 10, 2007
Payment date of cash dividends

1. Consolidated Financial Highlights for the interim period ended September 2007
(From April 1, 2007 to September 30, 2007)(1) Consolidated financial results(Note: The amounts shown below ignore values of less than a million yen)

Net sales
September 2007
September 2006
March 2007

Operating income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

150,835
132,669
276,439

13.7
10.7
-

33,531
28,63658,455

17.1
14.5
-

33,95329,05758,025

16.9
14.8
-

Net income
September 2007
September 2006
March 2007

Ordinary income

Net income per share(Millions of yen)%

22,931
18,43037,232

24.4
13.0
-

Net income per share,
fully diluted

(Yen)

(Yen)

115.8590.78
185.00-(Note) 1. Equity in earnings of unconsolidated companies:
September 2007: 20 million yen, September 2006: 85 million yen, March 2007: 135 million yen
2. The Percentages shown next to net sales, operating profit, ordinary profit and net income represent year-on-year changes.

(2) Consolidated financial position(Note: The amounts shown below ignore values of less than a million yen)

Total assets
September 2007
September 2006
March 2007

Net assets(Millions of yen)

(Millions of yen)

418,099
368,385
367,147

298,981
289,466
289,248(3) Consolidated statements of cash flows

Net assets per share

%

71.5
78.6
78.8

(Yen)

1,522.74
1,425.53
1,454.71(Note: The amounts shown below ignore values of less than a million yen)

Cash flows fromoperating activities
September 2007
September 2006
March 2007

Capital asset ratio

Cash flows from investing Cash flows from financing Cash and cash equivalents at
the end of the period
activities
activities(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

33,454
20,865
43,123(13,867)(9,326)(19,917)

19,191(4,976)(28,637)

82,23654,70843,049at 1st half end

Cash dividends per shareat fiscal half end

total

2.Dividends

FY2006
FY2007FY 2007 (forecast)

(Ｙen)

(Ｙen)

(Ｙen)

12.00
14.00

16.00

28.00

14.00

28.00

3. Consolidated forecast for the year ending March 2008 (From April 1, 2007 to March 31, 2008)
Net sales(Millions of yen)

Year ended March, 2008

305,000

Operating income(Millions of yen)

65,000(N.B.) Estimated earnings per share (full year): 213.07 yen

1Ordinary income(Millions of yen)

65,000Net income(Millions of yen)

42,0004.Others(1)Siginificant change in scope of consolidation:None(2)Change in accounting policies①Changes due to changes in accounting standard②Other changes

:Yes
:None

(3)Number of shares issued①Number of shares issued at end of the period (including treasury stocks):September 2007: 210,876,260 shares, September 2006: 210,876,260 shares
March 2007: 210,876,260 shares②Number of treasury shares at end of the period:September 2007 14,593,322 shares, September 2006 7,853,545 shares
March 2007 12,087,654 shares
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.

2

5. Semiannual Financial Statements(1) Consolidated Balance Sheet(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

(As of September 30, 2006)(As of September 30, 2007)(As of March 31, 2007)

AmountAmount(Assets)I

Cash on hand and in banks

55,407

85,13844,536

Trade notes/accounts receivable

66,96970,76570,049Inventories

43,697

48,15945,631

Deferred income taxes - current

8,508

7,340

7,519

Other current assets

3,945

5,113

4,733

1. Tangible fixed assets(905)

215,59751.6%%

177,622

Fixed Assets

48.2%

%

Current Assets

Allowance for doubtful accounts
II

Amount%(919)

171,576(894)

190,76251.8%

202,501

48.4%

195,570

53.3%

112,637

30.6%

115,89327.7%

115,643

31.5%

Buildings and structures

43,19046,16545,092

Machinery and transportation equipment

30,56936,24932,004Land

20,33420,30820,296

Construction in progress

11,294

6,226

11,493

Other tangible fixed assets
2. Intangible fixed assets

7,248
41,370

6,942
11.2%

39,3486,756
9.4%

40,524

Goodwill

35,59834,03935,046

Other intangible fixed assets

5,771

5,308

5,477

3. Investments and other fixed assets

36,75410.0%

47,25911.3%

39,402

Investments in securities

31,61843,26834,802

Deferred income taxes - noncurrent

2,640

1,461

1,920

Other assets
Total Assets

46.7%

2,495
368,3853

2,529
100.0%

418,099

11.1%

10.7%

2,679
100.0%

367,147

100.0%

(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

(As of September 30, 2006)(As of September 30, 2007)(As of March 31, 2007)

AmountAmount(Liabilities)
I

%
17.4%

%

64,000Trade notes/accounts payable

22,71325,281

25,725

Short-term bank loans

1,886

35,230236

Accrued Income taxes

10,656

14,522

8,694

Reserve for employees bonuses

4,402

4,549

4,433

-

82

169

Notes and accounts payable on equipment

5,192

4,727

5,906

Other current liabilities

19,14821,024

20,726Long-term Liabilities

14,9184.0%

105,419

13,69925.2%%

Current Liabilities

Reserve for directors bonuses

II

Amount3.3%

65,891

12,007

-

427

436

107

3,501

1,651

Reserve for retirement allowance
Reserve for retirement benefits for directors
and corporate auditors

11,677

5,787

6,506

728

728

728

Other long-term liabilities

2,404

3,254

2,683

Long-term debt
Deferred income taxes - noncurrent

Total Liabilities

17.9%

3.3%

78,91921.4%

119,118

28.5%

77,89921.2%

283,12776.9%

286,63168.6%

279,50776.1%(Net assets)
I

II

Shareholders' equity
Capital stock

38,716

38,716

38,716

Capital surplus

59,03059,03059,030Retained earnings

198,848234,965

215,213

Treasury stock
Evaluation difference and foreign currency
exchange adjustments(13,468)(46,080)(33,453)

Evaluation difference of investment securities

7,058

11,386

8,947

(0)

-

-

Gain/Loss on deferred hedge
Foreign currency translation adjustments
III

Minority interests

6,287

1.7%

(770)
51

12,256

2.9%

870
0.0%

93

9,672

2.7%

725
0.0%

68

0.0%

Total net assets

289,466

78.6%

298,98171.5%

289,248

78.8%

Total liabilities,net assets

368,385

100.0%

418,099

100.0%

367,147

100.0%

4

(2) Consolidated Statement of Income(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

AmountAmountAmount%%%I

Net sales

132,669

100.0%

150,835

100.0%

276,439100.0%II

Cost of sales

59,41844.8%

67,981

45.1%

123,11244.5%

Gross Profit on Sales

73,25055.2%

82,854

54.9%

153,326

55.5%

III

Selling, General and Administrative Expenses

44,61333.6%

49,322

32.7%

94,871

34.3%

Operating Profit

28,63621.6%

33,531

22.2%

58,455

21.2%

2,506

0.9%

2,936

1.1%

58,025

21.0%

43

0.0%

996

0.4%

57,072

20.6%

19,824

7.1%

IV Non-operating Income

V

Interest income

284

572

719

Dividend income

163

238

261

Royalties

46

46

53

Foreign exchange profit
Equity in earnings of unconsolidated
companies

365

-

628

85

20

135

Other non-operating income

301

1,246

0.9%

370

1,247

0.8%

708

Non-operating Expenses
Interest expenses

87

111

165

Sales discount

180

249

451

-

137

-

Foreign exchange losses
Loss on disposal of inventories

128

Other non-operating expenses

429

Ordinary Profit

108
826

0.6%

29,057

21.9%

218

1,241
826

0.5%

33,953

22.5%

1,077

VI Extraordinary Profit
Gain on sales of fixed assets

42

1

43

Reversal of allowance for doubtful accounts
Gain on relating to acquisition of newly
affiliated company

22

11

-

-

65

0.0%

1,059

1,073

0.7%

-

VII Extraordinary Losses
Loss on disposal of fixed assets

57

131

195

Loss on restructuring in overseas

-

-

60

12

-

12

Directors' retirement fee
Provision of allowance for retirement benefits
for directors and corporate auditors.

728

Income Before Taxes
Corporate, Inhabitant and Enterprise Taxes

9,385

Deferred Taxes (reduction)

504

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

798

0.6%

28,324

21.3%

-

131

0.1%

34,89523.1%

11,156
9,890

7.4%

788

728

17,002
11,945

7.9%

2,821

2

0.0%

18

0.0%

16

0.0%

18,43013.9%

22,931

15.2%

37,232

13.5%

5

(3) Statement of changes in net assets(Millions of yen)Interim year ended

Shareholders' equity

September 2006

Capital stock
Beginning of period

Retainedearnings

Capital surplus

38,71659,030Treasury stock

183,391(13,449)

Shareholders'equity total
267,689

Changes during the interium accounting period
Delivery of dividends(2,842)

Directors' bonuses

(132)

(132)

18,43018,430Net income for the period(2,842)(19)

Acquisition of treasury stock(19)

Changes of items other than capital stock (net)Total changes during the interium accounting periodEnding of period--

15,456(19)

15,43738,71659,030198,848(13,468)

283,127

Evaluation difference and foreign currency exchange adjustments
Evaluation
Evaluation
Foreign currency difference andGain/Loss on
difference oftranslation
foreign currency Minority interests Net assets totaldeferred hedge
investment
adjustments
exchange
securities
adjustments total
Beginning of period

7,367

-

(1,747)5,619

49273,359

Changes during the interium accounting period
Delivery of dividends(2,842)

Directors' bonuses(132)

Net income for the period

18,430Acquisition of treasury stock

(19)
(308)

(0)

Total changes during the interium accounting period

(308)

(0)

977

668

1

16,106

Ending of period

7,058

(0)

(770)

6,287

51

289,466

Changes of items other than capital stock (net)

977

668

1

(Millions of yen)Interim year ended

Shareholders' equity

September 2007

Capital stock
Beginning of period

Retainedearnings

Capital surplus

38,71659,030215,213

Treasury stock(33,453)

Shareholders'equity total
279,507

Changes during this interium accounting period
Delivery of dividends(3,180)Net income for the period

22,931(3,180)22,931(12,627)

Acquisition of treasury stock(12,627)

Changes of items other than capital stock (net)Total changes during the interium accounting periodEnding of period--

19,751(12,627)

7,123

38,71659,030234,965(46,080)

286,631

Evaluation difference and foreign currency exchange
adjustments
Evaluation
Evaluation
Foreign currency difference anddifference oftranslation
foreign currency Minority interests Net assets total
investment
adjustments
exchange
securities
adjustments total
Beginning of period

8,947

725

9,672

68

289,248

Changes during the interium accounting period
Delivery of dividends(3,180)Net income for the period

22,931

Acquisition of treasury stock
Changes of items other than capital stock (net)(12,627)
2,439

144

Total changes during the interium accounting period

2,439

Ending of period

11,386

6

2,584

24

2,609

144

2,584

24

9,732

870

12,256

93298,981669

(Millions of yen)
Year ended

Shareholders' equity

March 2007

Capital stock
Beginning of period

Retainedearnings

Capital surplus

38,71659,030183,391

Treasury stock(13,449)

Shareholders'equity total
267,689

Changes during the accounting period
Delivery of dividends(5,278)

Directors' bonuses

(132)

(132)

37,232

37,232

Net income for the period(5,278)(20,004)

Acquisition of treasury stock(20,004)

Changes of items other than capital stock (net)Total changes during the accounting periodEnding of period--

31,821(20,004)

11,81738,71659,030215,213(33,453)

279,507

Evaluation difference and foreign currency exchange
adjustments
Evaluation
Evaluation
Foreign currency difference anddifference oftranslation
foreign currency Minority interests Net assets total
investment
adjustments
exchange
securities
adjustments total
Beginning of period

7,367(1,747)5,619

49273,359

Changes during the accounting period
Delivery of dividends(5,278)

Directors' bonuses(132)

Net income for the period

37,232Acquisition of treasury stock(20,004)

Changes of items other than capital stock (net)

1,580

2,472

4,052

18

4,071

Total changes during the accounting period

1,580

2,472

4,052

18

15,888Ending of period

8,947

725

9,672

68

289,2487

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

I

Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

Income before taxes

28,32434,89557,072

Depreciation and amortization

Cash flows from operating activities

6,952

8,100

14,340

Amortization of goodwill

590

591

1,173

Equity in earnings of unconsolidated companies

(85)

(20)

(135)

Increase(decrease) in retirement allowance

(494)

(718)

(669)

Increase(decrease) in allowance for doubtful accounts

(27)

15

(53)

-

(86)

169
(980)

Increase(decrease) in reserve for directors bonuses
Interest and dividend income

(447)

(810)

Interest expenses

87

111

165

Foreign exchange losses (gains)

140

220

560

Loss on disposal of tangible fixed assets

57

131

195

Gain on sales of tangible fixed assets

(42)

(1)

(43)

-

-

(5,000)

Payment Cash contribution of securities to retirement benefits
Gain on relating to acquisition of newly affiliated company-(1,059)-Decrease(increase) in accounts receivable(2,351)(259)(4,471)

Decrease(increase) in inventories(2,274)(2,277)(3,080)

Increase(decrease) in accounts payable(1,605)

(962)

665

(132)

-

(132)

Directors' bonuses
Others

1,926

40

2,206

Subtotal

30,61837,90961,982

546

889

1,116

Interest and dividend received
Interest paid

II

(87)

(41)

(165)

Income taxes paid

(10,213)(5,303)(19,810)

Cash flows from operating activities

20,86533,454

43,123(1,487)

Cash flows from investing activities
Payments into time deposits(698)(2,777)

Proceeds from time deposits

-

1,364

-

(8,641)(8,958)(17,202)

Payments for acquisition of tangible assets
Proceeds from sales of tangible assets

141

1

191

Payments for acquisition of intangible assets

(126)

(238)

(447)

Payments for acquisition security investments(1)(4,259)(2)

Redemption of security investments

-

1,000

Proceeds from Assignment of goodwill

-

-

40

Payments for Assignment of goodwill

-

-

(799)

Payments for acquisition of newly consolidated subsidiary
Cash flows from investing activities

-

-

-

(209)

(9,326)(13,867)(19,917)(2,114)35,000(3,787)

III Cash flows from financing activities
Increase(decrease) in short-term debt
Increase of long-term debt

-

-

432

Buyback of treasury stock(19)(12,627)(20,004)

Dividends paid

(2,842)(3,180)(5,278)Cash flows from financing activities(4,976)19,191(28,637)

182

409

516

IV Effect of Exchange Rate Changes on Cash andCash Equivalents
V

6,744

39,187(4,914)

VI Cash and Cash Equivalents, Beginning of period

Change in Cash and Cash Equivalents

47,96343,04947,963

VII Cash and Cash Equivalents, End of period

54,70882,23643,0498

Notes:Relating to balance sheet
I

Accumulated depreciation of tangible assets(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

(As of September 30, 2006) (As of September 30, 2007)

Accumulated depreciation of tangible assets

191,436(As of March 31, 2007)

200,467

196,452

II Matured bills at the end of the period
The last day of each accounting period was a holiday of banking institutions,and the bills reaching maturity on the day,mentioned below, are included in the ending balance of the accounting period.
(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

(As of September 30, 2006) (As of September 30, 2007)

Trade notes receivable

694

416

(As of March 31, 2007)

415

Relating to statement of income
I Main items among selling, general and administrative expenses(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

Promotion and Advertisement fee

4,428

4,782

10,236

Transportation and Packaging cost

3,845

4,368

7,997

Salaries

11,10012,24522,074

Provision for bonuses

2,006

2,653

4,755

742

775

1,611

1,438

1,669

3,027

PensionDepreciation
II R&D expenditure(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

R&D expenditure

7,771

9

7,783

16,792

III Itemized statement of Gain on sales and Loss on disposal of assets
Gains on sales of fixed assets(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

Land

33

Machinery and transportation equipment

8

Other tangible fixed assets--

Total Gains on sales of fixed assets

42

33

1

9

0

0

1

43

Loss on disposal of fixed assets(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

Land

-

-

12

Buildings and structures

12

22

18

Machinery and transportation equipment

18

86

68

Other tangible fixed assets

25

22

95

Total Loss on disposal of fixed assets

57

131

195

Relating to statement of cash flows
Reconciliation of cash and cash equivalents on the semiannual consolidated balance sheet.

(Millions of yen)Interim year ended

Interim year ended

Year ended

September 2006

September 2007

March 2007

Cash on hand and in banks
Time deposits, bonds and other with original maturity
exceeding a three-month period

55,407

85,13844,536(698)(2,902)(1,487)

Cash and cash equivalents

54,70882,23643,04910

Relating to Statement of changes in net assets
I Category and total number of issued stock and treasury stock(Thousand)

Beginning balance

Increase during
this interim period

Decrease during
this interim periodEnding balanceIssued stock : Common stock

210,876--

210,876

Treasury stock : Common stock

12,0872,505-

14,593*Note : The increase of treasury stock is from buyback in the stock market and taking up odd stock.
II Items on dividend(1) Delivery of dividends(Resolution)

Category of stock

Annual meeting of stockholders held on June 28, 2007

Common stock

Dividend (millions Dividend per share
yen)
(yen)
Dividend record date

3,180

16

March 31,2007

Effective dateJune 29,2007(2) Dividend recorded in this interim period but effective after the period end(Resolution)

Category of stock

Dividend(millions yen)

Board of directors held on Oct 29, 2007

Common stock

2,747

11

Source ofdividend
Retainedearnings

Dividend pershare (yen)14

Dividend record date

Effective date

September 30,2007 December 10,2007

6. Segment Information(1) Segment(Millions of yen)Interim year ended
Changes
September 2007

Interim year ended
September 2006
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(Note) Corporate expenses are not eliminated.

65,82912,351
18.8%

74,05015,262
20.6%

8,221
2,911
－

52,771
17,77733.7%

61,595
19,424
31.5%

8,823
1,647
－

14,068
3,834
27.3%

15,189
4,610
30.4%

1,120
776
－

Interim year ended
September 2006
AmountInterim year ended
September 2007
Amount(Millions of yen)

(2) Sales results by product segment

Disposable 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

%

%

Changes%

38,23328.8%

42,030

27.9%

9.9%

18,36313.8%

20,559

13.6%

12.0%

9,232

7.0%

11,460

7.6%

24.1%

65,82949.6%

74,050

49.1%

12.5%

30,27722.8%

37,629

24.9%

24.3%

17,625

13.3%

19,014

12.6%

7.9%

4,868

3.7%

4,950

3.3%

1.7%

52,771

39.8%

61,595

40.8%

16.7%

3,637

2.7%

3,609

2.4%

-0.8%

5,925

4.5%

6,977

4.6%

17.8%
2.2%

4,505

3.4%

4,602

3.1%

14,068

10.6%

15,189

10.1%

8.0%

132,669

100.0%

150,835

100.0%

13.7%(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, Blood transfusion administration set, medical
electronic devices for blood collection, etc.
PTCA dilation catheters, Coronary stent, Guide wire,
Angiographic catheters, Coated coil, etc.
Roller pump, Hollow fiber oxygenators, Blood circuit, etc.
Artificial vascular grafts
Dialysis solution, etc.
Blood glucose monitor, etc.
Home oxygen system, Digital Thermometers, Electronic
sphygmomanometers, etc.

(3) Sales results by region(Millions of yen)Interim year ended
September 2006
AmountJapan
EuropeAmerica
Asia and others
Total

%

Interim year ended
September 2007
AmountChanges% Amount

73,82855.6%

79,517

52.7%

5,689

22,75017.2%

27,310

18.1%

4,559

24,69918.6%

28,859

19.1%

4,159

11,3908.6%

15,148

10.1%

3,757

132,669

100.0%

150,835

100.0%

18,16612