Financial Results for the Fiscal Year Ended March 31, 2014
May 8, 2014
Exchange where listed: TSE

Name of listed company: TERUMO CORPORATION(URL http://www.terumo.com/): 4543: Yutaro Shintaku, President and Representative Director: Masayuki Maruta, General Manager, Corporate Communication Dept.
: +81 / 3-6742-8550

Company code number
Representative:
Please address all communications to
Phone
Adoption of U.S. accounting standards [Yes/No]: No

1. Consolidated Financial Highlights for the Year Ended March 2014
(From April 1, 2013 to March 31, 2014)(1) Consolidated financial results(Notes: The amounts shown below ignore values of less than a million yen)

Net sales(Millions of yen)

Year ended March, 2014
Year ended March, 2013
(Notes) Comprehensive income:Operating income%(Millions of yen)

Ordinary income%

Net income(Millions of yen)%

467,359402,294

63,80265,288 22.7
16.2
24.2
51,37653,216 (15.6)
4.0(13.2)March 2014: 71,166million yen (-24.1%) March 2013: 93,735million yen (294.9%)
Net income per share

Net income per share,
fully diluted

(Yen)

(Yen)

Net income perstockholders'equity34,09647,014

Ordinary income
per total assets

%

7.3
89.78
89.78
Year ended March, 2014123.80－11.9
Year ended March, 2013
(Notes) Equity in earnings of affiliates: March 2014: 132million yen March 2013: 176million yen
Terumo Corporation split each share of common stock into two shares effective on 1st April 2014,
Net income per share and Net income per share, fully diluted have been restated.

(Millions of yen)%

(27.5)
94.5

Operatingincome per
Net sales

%

%

8.0
7.0

14.0
13.2

(2) Consolidated financial position
Total assets

Net assets(Millions of yen)

Equity ratio(Millions of yen)

Net assets per share

%

(Yen)

1,306.72
1,152.21

832,814496,245
59.6
As at March 31, 2014
771,032
437,909
56.7
As at March 31, 2013
(Notes) Shareholders' equity: March 31, 2014: 496,225 million yen March 31, 2013: 437,557 million yen
Terumo Corporation split each share of common stock into two shares effective on 1st April 2014,
Net asset per share have been restated.

(3) Consolidated statements of cash flows

Year ended March, 2014
Year ended March, 2013

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows from financing
activities(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

96,25950,270(52,744)(31,293)(31,785)(22,340)

92,49875,165

Cash and cash equivalents,
end of period

2. Dividends
Cash dividends per shareat fiscal year end

at 1st half end
(Yen)

(Yen)

total
(Yen)

22.00
22.00
44.00
Year ended March, 2013
29.00
29.00
58.00
Year ended March, 2014
14.50
29.00
14.50
Year ending March, 2015 (forecast)(Notes) Terumo Corporation split each share of common stock into two shares effective on 1st April 2014,
and this forecast of Cash dividends per share is reflected this stock split.

3. Consolidated Forecast for the Year Ending March 2015 (From April 1, 2014 to March 31, 2015)
Net sales(Millions of yen)

Ordinary income

Operating income%(Millions of yen)%

(Millions of yen)

28,00027,000
4.4(8.1)
62,00064,000Year ending March, 2015
4.4
(2.0)
(Notes) Assumed exchange rate in FY2014: 1US$=100yen, 1Euro=140yen
Terumo Corporation split each share of common stock into two shares effective on 1st April 2014,
and this forecast of Net income per share is reflected this stock split excluding treasury stock.

Half year ending September, 2014

236,000
488,000

Net income
per share

Net income%(Millions of yen)

%

(8.7)
(2.8)

16,00037,500(17.8)
10.0

(Yen)

42.13
98.75

Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these areforecasts on projections made by Terumo based on limited information available at the moment of disclosure. Accordingly, it should be noted that actual results
may differ from those forecasts on projections due to various factors. Factors affecting to actual results include, but are not limited to, changes in economic
conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.

14. Financial Statements(1) Consolidated balance sheet(Millions of yen)
As at March 31, 2013

As at March 31, 2014

Amount(Assets)

Amount%I Current assets

ChangesAmount286,955

37.2%%
310,98537.3%%
24,029Cash and deposits

78,201

95,61817,417

Noteｓ and accounts receivable-trade

95,008

101,520

6,511

Marchandise and finished goods

54,34660,034

5,688Work in process

9,265

10,262997

Raw materials and supplies

21,56823,6682,100

Deferred tax assets

11,25812,340

1,082

Other

18,528

8,933(9,594)

Allowance for doubtful accounts(1,220)(1,394)

8.4%

(173)

II Noncurrent assets

483,77062.8%

520,332

62.5%

36,5627.6%

1. Property, plant and equipment

144,82418.8%

157,755

18.9%

12,930

8.9%

Buildings and structures

48,96654,215

5,249

Machinery, equipment and vehicles

46,36643,916(2,450)Land

21,82721,757(69)

Lease assets
Construction in progress
Other

704

406

(297)

17,79427,974

10,1809,165

2. Intangible assets

296,634

9,483
38.5%

304,756

317
36.7%

8,122

Goodwill

149,322

154,161

4,838

Customer-related assets

90,706

93,968

3,261

Other

56,60456,626

3. Investments and other assets

42,311

5.5%

57,82021
6.9%

15,509Investment securities

30,30437,954

Deferred tax assets

5,153

5,323

169

－

2,573

2,573

Net defined benefit asset
Other

6,852

III Deferred assets
Total assets

2

2.7%

36.7%

7,649

11,969

5,116

306

0.0%

1,496

0.2%

1,189

387.7%

771,032

100.0%

832,814100.0%

61,781

8.0%

(Millions of yen)
As at March 31, 2013

As at March 31, 2014

Amount(Liabilities)
I

115,844

Notes and accounts payable-trade37,515

Short-term loans payable
Current portion of long-term loans payable

Current portion of bonds
Income taxes payable

15.0%

%
160,936

19.3%%
45,092

38,147632

18,046

260(17,785)

3,762

4,652

890

277

225

(51)

－

40,00040,0002,609

18,401

15,792

Deferred tax liabilities

35

94

59

Provision for bonuses

4,834

4,849

15

109

109

0

6,624

8,425

1,801

420

－

(420)

Other

41,61145,7694,158

Noncurrent liabilities

217,278

Bonds payable

80,00040,000(40,000)

Long-term loans payable

78,712

76,769(1,942)

Provision for directors' bonuses
Notes and accounts payable-facilities
Asset retirement obligations

II

Amount%Current liabilities

Lease obligations

ChangesAmountLease obligations

28.2%

175,632

21.1%(41,646)

439

299

(139)

Deferred tax liabilities

49,65947,795(1,863)

Provision for retirement benefits

1,247

－

(1,247)

－

3,124

3,124

198

66

(132)

Net defined benefit liability
Provision for directors' retirement benefits
Asset retirement obligations

38.9%(19.2%)

155

220

64

Other

6,865

7,354

489

Total liabilities

333,12243.2%

336,568

40.4%

3,445

1.0%

I

Shareholders' equity

419,99954.5%

444,396

53.4%

24,397

5.8%

Capital stock

38,716

38,716－

Capital surplus

52,103

52,103－Retained earnings

329,188353,600

24,412(9)(24)

Treasury stockII

17,557

Valuation difference on available-for-sale securities

7,458

11,269

3,811

－

(2)

(2)

Foreign currency translation adjustment

10,09943,37733,278Remeasurements of defined benefit plans－(2,816)

Deferred gains or losses on hedges

III Subscription rights to shares－

IV Minority interests

2.3%

－

51,828(14)

Accumulated other comprehensive income

20

6.2%

34,270195.2%(2,816)
0.0%

20

－

352

0.0%

－

－

(352)

－

Total net assets

437,90956.8%

496,245

59.6%

58,335

13.3%

Total liabilities, net assets

771,032

100.0%

832,814100.0%

61,781

8.0%

3

(2) Consolidated statement of income(Millions of yen)
For the year ended

For the year ended

March 31, 2013

March 31, 2014

AmountChangesAmountAmount%%%I

Net sales

402,294

100.0%

467,359

100.0%

65,065

16.2%

II

Cost of sales

196,60548.9%

225,34848.2%

28,742

14.6%

Gross profit

205,68851.1%

242,01151.8%

36,323

17.7%

152,47237.9%

176,72237.8%

24,25015.9%

53,21613.2%

65,28814.0%

12,072

22.7%

2,341

74.1%

III Selling, general and administrative expenses
Operating income
IV Non-operating income
Interest income

307

459

151

Dividends income

284

338

54

Royalty income
Foreign exchange profit
Equity in earnings of affiliates
Other
V

124

116

(7)

1,257

3,250

1,992

176

132

(43)

1,009

3,160

0.8%

1,203

5,501

1.2%

193

Non-operating expenses
Interest expenses

1,303

1,542

Sales discounts

597

661

63

Loss on disposal of inventories

677

836

158

Other

2,421

Ordinary income

5,000

1.2%

51,376

12.8%

3,947

238

6,988

1.5%

63,802

13.7%

1,526

1,988

39.8%

12,425

24.2%

5,564

301.4%

17,367

1,852.6%

622

1.2%

VI Extraordinary income
Gain on sales of noncurrent assets

77

743

665

Subsidy income

875

－

(875)

Gain on transfer of business

892

666

(225)

Settlement received

－

1,846

0.4%

6,000

7,410

1.5%

6,000

VII Extraordinary expenses
Loss on disposal of noncurrent assets

543

995

451
15,351

Impairment loss－

15,351

Directors' retirement benefits

－

33

33

Loss on liquidation of business

－

740

740

Loss on system fault

－

1,185

1,185

Loss on valuation of golf club memberships

3－

Environmental expenses

390

Income before income taxes
Income taxes-current

7,179

Income taxes-deferred(1,961)

Income before minority interests
Minority interests in income
Net income

4

937

0.2%

52,285

13.0%

－

(3)
18,305

3.9%

52,907

11.3%

26,637
5,218

1.3%

47,067

11.7%(7,856)(390)

19,457
18,7804.0%

34,126

7.3%(5,894)

13,562259.9%(12,940)(27.5%)

53

0.0%

30

0.0%

(22)

(41.9%)

47,014

11.7%

34,096

7.3%(12,918)(27.5%)

(3) Consolidated statement of comprehensive income

I

Income before minority interests

II

Other comprehensive income(Millions of yen)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method

For the year ended

For the year ended

March 31, 2013

March 31, 2014

AmountAmount47,067

34,126

7,510

3,811

(1)

(2)

39,15733,2342Comprehensive income

46,668(3)

37,03993,735

71,166

93,647

71,17987(13)

Attributable to:Shareholders of Terumo Corporation
Minority interests5(4) Statement of changes in net assets(Millions of yen)
Shareholders' equity
Year ended March 2013
Beginning of period
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Capital stock

Capital surplus

38,71652,103Retained earnings(3)

Shareholders'equity total
381,345(5)(8,354)47,014
(5)

(5)
(9)

38,653419,999

Treasury stock

290,529(8,354)47,014－38,716－52,10338,659329,188

Accumulated other comprehensive income

Year ended March 2013
Beginning of period
IFRS Adjustment
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Valuation difference
on available-for-sale securities(51)

Deferred gains orlosses on hedges
1

7,510
7,510
7,458

Foreign currencytranslation adjustments(29,023)

(1)
(1)
-

Remeasurements ofdefined benefit plans

39,122
39,122
10,099

Accumulated othercomprehensive income total(29,073)

Subscription
rights toshares-46,63046,63017,557-

Accumulated othercomprehensive income total
17,557

Subscription
rights toshares--Minority
interests

Net assets
total

264

352,53787
87
352(8,354)47,014(5)
46,71885,372437,909(Millions of yen)
Shareholders' equity
Year ended March 2014
Beginning of period
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Capital stock

Capital surplus

38,71652,103Retained earnings(9)

Shareholders'equity total
419,999(14)(9,683)34,094
(14)

(14)
(24)

24,397444,396

Treasury stock

329,188(9,683)34,096－
38,716－52,103

24,412353,600

Accumulated other comprehensive income
Valuation differenceYear ended March 2014
on available-for-sale securities
Beginning of period
7,458
IFRS Adjustment
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)
3,811
Total changes during this fiscal year
3,811
11,269Ending of period

Deferred gains orlosses on hedges-

Foreign currencytranslation adjustments
10,099

(2)
(2)
(2)

33,27833,27843,377

6

Remeasurements ofdefined benefit plans(2,816)(2,816)(2,816)34,27034,27051,82820
20
20

Minority
interests

Net assets
total

352

437,909

(352)
(352)
-

(9,683)34,096(14)
33,93858,335496,245(5) Consolidated statements of cash flows

I(Millions of yen)

For the year ended

For the year ended

March 31, 2013

March 31, 2014

AmountAmountNet cash provided by (used in) operating activities
Income before income taxes

52,28552,907

Depreciation and amortization

24,60130,322－

15,351

Amortization of goodwill

7,952

9,559

Equity in (earnings) losses of affiliates

(176)

(132)

Increase(decrease) in provision for retirement benefits(534)(1,247)

Impairment loss

Decrease (increase) in ｎet defined benefit asset－(1,899)

Increase(decrease) in ｎet defined benefit liability

－

1,506

Increase(decrease) in provision for directors' retirement benefits

(3)

(132)

Increase(decrease) in allowance for doubtful accounts

(96)

73

Increase(decrease) in provision for directors' bonuses

(18)

0

Interest and dividends income

(591)

(798)

Interest expenses

1,303

1,542

Foreign exchange losses (gains)(2,976)(3,210)Subsidy income

(875)

－

Gain on transfer of business

(892)

(666)

Settlement received－(6,000)Loss (gain) on sales of noncurrent assets

(77)

(743)

Loss (gain ) on disposal of noncurrent assets

543

995

－

(3,600)

Payments cash contribution of securities to retirement benefit trust
Directors' retirement benefits－

33

Loss on liquidation of business－

740

Loss on system fault

－

1,185

Loss on valuation of golf club memberships

3－

Loss on environmental expenses

390－

Decrease (increase) in notes and accounts receivable-trade

985

(506)

Decrease (increase) in inventories(10,590)(3,618)

Increase (decrease) in trade payable

3,925(1,096)

Other, net
SubtotalInterest and dividends income received

(78)

4,849

75,07895,411841

1,020Interest expenses paid

(1,330)(1,522)

Income taxes paid

(24,321)(2,875)

Settlement package received

－

6,000

Payments for directors' retirement benefits

－

(33)

Loss on system fault paid

－

(943)

Payments for environmental expenses

－

(798)

Subsidy income received

0－50,27096,259Net cash provided by (used in) operating activities
II Net cash provided by (used in) investment activities
Payments into time deposits

(561)

(767)

Proceeds from withdrawal of time deposits

2,803

1,182

Purchase of property, plant and equipment(25,715)(39,933)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Paymentｓ for ｐerformance to asset retirement obligations
Purchase of investment securities
Payments for transfer of business
Capital expenditure for subsidiary's equity
Purchase of stocks of subsidiaries and affiliates

322

953

(6,759)(4,960)

(420)

(420)

(1,074)(1,823)－(1,828)

(956)

(374)

－

(1,519)Proceeds from transfer of business

1,372

1,815

Other, net(306)(5,069)(31,293)(52,744)

Net cash provided by (used in) investment activities
III Net cash provided by (used in) finacing activities
Increase in short-term loans payable

1,264

253

Decrease in short-term loans payable(1,278)(4,055)

Net increase (decrease) in short-term loans payable(42,000)(18,000)

Proceeds from long-term loans payable

28,612－

Repayments of financial lease obligations

(579)

(284)

Purchase of treasury stock
Cash dividends paid
Net cash provided by (used in) finacing activities

(5)

(14)

(8,354)(9,683)(22,340)(31,785)

IV Effect of exchange rate changes on cash and cash equivalents

4,735

5,603

V Net increase(decrease) in cash and cash equivalents

1,371

17,332

VI Cash and cash equivalents at beginning of period

73,79375,165

VII Cash and cash equivalents at end of period

75,16592,4987

(6)Notes<Significant accounting policies in preparing the consolidated financial statements>
Changes in accounting policy(Adoption of Accounting Standard for Retirement Benefits)
Concomitant with the Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan(ASBJ) Statement No. 26 of May 17, 2012), and Guidance on Accounting Standard for Retirement Benefits(ASBJ Guidance No. 25. of May 17, 2012), the Company has applied these standards as of the fiscal year ending March 31, 2014.
Under the new standard, pension assets are deducted from retirement benefit obligations and the net amount isrecognized as liability for retirement benefits, and previously unrecognized actuarial gains and losses andunrecognized prior services costs are recorded as liability for retirement benefit.
In accordance with transitional accounting as stipulated in article 37 of the Accounting Standard for Retirement
Benefits, the effect of the changes in accounting policies arising from initial application is recognized inaccumulated adjustments for retirement benefit within the net asset section at the end of the fiscal year ending March 31, 2014.
As a result, “Net defined benefit asset” and "Net defined benefit liability"on the consolidated balance sheet haveincreased by ¥2,573 million and ¥3,124 million each at the end of the fiscal year ending March 31, 2014, andaccumulated other comprehensive income has decreased by ¥2,816 million.
Net asset per share has decreased by ¥7.42.

<Subsequent Event>
The Company executed a stock split effective April 1, 2014, according to the resolution of the Board of Directors’ meeting on
February 4, 2014.
Details of the stock split are as follows:
1. Purpose of stock split
The stock split will be conducted with the aim of increasing the liquidity of the Company’s stock and expanding its investor base by
reducing the price of share-trading units.
2. Method of the stock split
Each share of common stock held by shareholders recorded on the register of shareholders as of March 31, 2014, was split into
2 shares.
3. Increase in the number of shares due to the stock split
Common stock 189,880,260 shares
Per share data have been restated, as appropriate, to reflect a two-for-one stock split effective April 1, 2013.

8

5. Segment Information[Reportable Segments](Note) Main products belonging to each business segment
Previous sub-segments
Business segments

General Hospital business

New sub-segments

Main products

Disposable medical devices andmedical electronics

General Hospital Products

Syringes, Needles, Blood collection tubes, Solution
sets, I.V.catheters,
Infusion pumps, Syringe pumps, etc.

Pharmaceuticals

Pharmaceutical and Nutrition

I.V.solutions, Nutritious food, CAPD systems, etc.

-

D&D

Prefilled syringes, Pain management systems etc.

Diabetes care products

DM and Consumer Healthcare

Consumer Healthcare business-

Blood glucose monitoring systems, Digital
Thermometers, Blood pressure monitors, etc.
Angiographic catheters, PTCA balloon catheters,
Coronary stents

Interventional systems

Interventional systems-

Neurovascular

Neuro interventional coils, etc.

Cardiovascular systems

CV Systems

Oxygenerators, Cardio-pulmonary bypass system,
etc.

Vascular grafts

Vascular graft

Cardiac and Vascular business

Blood Management business-

Artificial vascular grafts, Stent grafts
Blood bags, Automated blood collection system,
Therapeutic apheresis system, Cell expansion
system, etc.

-

(Note) Changes in segments clasification
Sales and expenses related to home oxygen system business and home infusion pump business sold off in previous fiscal year andnext generation implantable left ventricular assist system entered in strategic alliance in this fiscal year are allocated to“Adjustments.”
As a result of this changes, compared to the previous classification, the segment income for the fiscal year ending March 31, 2013
has increased accordingly; General Hospital Business ¥366 million, Cardiac & Vascular Business ¥3,640 million, BloodManagement Business ¥39 million. The segment income of “Adjustment” has decreased by ¥4,047 million.

(1) Fiscal year ended March 31, 2013

(Millions of yen)
For the year ended
March 31, 2013
General HospitalBusiness

Cardiac &VascularBusiness

Blood
Management
Business

Subtotal

Adjustment

Total

Sales and operating income:Sales to customer

155,010

169,678

74,745

399,432

2,860

－

－

－

－

－

－

Sales total

151,010

169,678

74,745

399,432

2,862

402,294

Segment income (Excl. Amortization)

23,64729,04913,81766,513

243

66,756

Segment income

23,64727,281

2,004

52,972

243

53,216

15.3

17.1

18.5

16.7

－

16.6

168,316

219,296308,322695,935

75,097771,032

7,765

5,890

10,47624,132468

24,601

－

1,767

6,184

7,952

－

7,952

12,794

12,8686,564

32,226935

33,162

Internal sales

Segment income(%)(Excl. Amortization)
Segment assets

402,294

Others:Depreciation and amortization
Amortization of goodwill
Net increase of tangible andintangible noncurrent assets

Notes:

1. Segment income is adjusted to be consistent with operating income shown on the
consolidated income statement.
2. Adjustment to segment income (loss), which amounted to 243 million yen, is the sumof 584 million yen for Inventories and (340) million yen for others.
3. Adjustment to segment assets, which amounted to 75,097 million yen, mainly includes
investments in"Cash and deposit", "Investments securities", "Deferred tax assets" andassets of the Administrative Department.

9(2) Fiscal year ended March 31, 2014

(Millions of yen)
For the year ended
March 31, 2014
General HospitalBusiness

Blood
Management
Business

Cardiac &VascularBusiness

Subtotal

Adjustment

Total

Sales and operating income:Sales to customer

164,089

210,558

92,743

467,391

(32)

－

－

－

－

－

－

Sales total

164,089

210,558

92,743

467,391(32)

467,359

Segment income (Excl. Amortization)

20,79743,92818,613

83,339(1,740)81,599Segment income

20,797

41,9494,281

67,028(1,740)65,288

12.7

20.9

20.1

17.8

－

17.5

171,316

237,446

327,087

735,850

96,963

832,814

8,660

8,988

11,811

29,460861

30,322

－

1,979

7,580

9,559

－

9,559

13,03722,022

10,561

45,621

1,002

46,624

Internal sales

Segment income(%)(Excl. Amortization)
Segment assets

467,359

Others:Depreciation and amortization
Amortization of goodwill
Net increase of tangible andintangible noncurrent assets

Notes:

1. Segment income is adjusted to be consistent with operating income shown on the
consolidated income statement.
2. Adjustment to segment income (loss), which amounted to (1,740) million yen, is the sumof (129) million yen for Inventories and (1,610) million yen for others.
3. Adjustment to segment assets, which amounted to 96,963 million yen, mainly includes
investments in"Cash and deposit", "Investments securities", "Deferred tax assets" andassets of the Administrative Department.

(Supplementary Information)[Geographic Segments](1) Fiscal year ended March 31, 2013

(Millions of yen)
For the year ended
March 31, 2013
Japan

EuropeAmericas

Asia and others

Total

Sales

185,91375,39487,94053,045402,294

Tangible noncurrent assets

99,275

9,240

19,125

17,183

144,824(2) Fiscal year ended March 31, 2014

(Millions of yen)
For the year ended
March 31, 2014
Japan

EuropeAmericas

Asia and others

Total

Sales

189,041

96,892110,972

70,452

467,359

Tangible noncurrent assets

105,400

10,712

17,722

23,919157,755[Impairment Loss on Tangible noncurrent assets](1) Fiscal year ended March 31, 2013
Not applicable.

(2) Fiscal year ended March 31, 2014

(Millions of yen)
For the year ended
March 31, 2014
General HospitalBusiness

Impairment Loss

3,454

Cardiac &VascularBusiness

Blood
Management
Business

7,594

1,965

10

Subtotal
13,014Company
2,336

Total
15,351