Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2011
October 28, 2010
Exchange where listed: TSE

Name of listed company: TERUMO CORPORATION(URL http://www.terumo.com/): 4543: Yutaro Shintaku, Representative Director and President: Tetsuya Kumei, General Manager, Corporate Communication Dept.
: +81 / 3-3217 -6550

Company code number
Representative:
Please address all communications toPhone

1. Consolidated Financial Highlights for the Interim Period Ended September 2010
(From April 1, 2010 to September 30, 2010)(1) Consolidated Financial Results
Net salesOperating income(Millions of yen)%

163,918
158,063

Six months ended September, 2010
Six months ended September, 2009

Ordinary income(Millions of yen)%

32,70632,5503.7
0.7

Net income per share

Net income per share,
fully diluted

(Yen)

(Yen)

(Millions of yen)

28,17432,2390.5
3.5

Net income%(Millions of yen)

18,364
20,771(12.6)(1.8)%(11.6)(9.7)－96.71
Six months ended September, 2010109.38－Six months ended September, 2009
(Note) The percentages represent increases (decreases) from the corresponding period in the prior fiscal year.
The amounts shown above ignore values of less than a million yen.
(2) Consolidated Financial Position
Total assets

Capital asset ratio

Net assets

Net assets per share(Millions of yen)

(Millions of yen)

%

(Yen)

409,083
425,507

320,523
317,139

78.3
74.5

1,686.69
1,668.93

September 30, 2010
March 31, 2010

(Note) Shareholders' equity : September 30, 2010: 320,290 million yen, March 31, 2010: 316,921 million yen.
The amounts shown above ignore values of less than a million yen.

2. Dividends

1st quarter

Fiscal year ended March 31, 2010
Fiscal year ending March 31, 2011
Fiscal year ending March 31, 2011 (forecast)

Dividends per share
2nd quarter 3rd quarter 4th quarter

total(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

－－

16.00
16.00

－

16.00

32.00

－

16.00

32.00

(Note) Revise of dividends forecast : None

3. Consolidated Forecast for the Year Ending March 2011 (From April 1, 2010 to March 31, 2011)
Operating income

Net sales

Fiscal year ending March, 2011

Net income
per share

Net income

Ordinary income(Millions of yen)%(Millions of yen)%(Millions of yen)%

(Millions of yen)%

326,000

3.2

63,3000.0

57,200(10.1)

36,300(10.9)(Yen)

191.16

1. Forecast for fiscal year ending March, 2011 which was announced on August 5, 2010 has been revised.
(Assumed exchange rate for fiscal year ending March, 2011: USD1=JPY85, EUR1=JPY113)
2. 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. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)

(Assets)
I Current assets

As of September 30,
2010

As of March 31,
2010

AmountAmount224,066%54.8%

230,431

Cash and deposits

82,074

90,102

Notes and accounts receivable-trade

74,716

71,798Merchandise and finished goods

32,48834,180Work in process

6,118

6,143

Raw material and supplies

15,367

14,741

Deferred tax assets

9,077

9,086

Other

4,952

5,071

Allowance for doubtful accounts

(728)

(693)

%
54.2%

II Noncurrent assets

185,01745.2%

195,076

45.8%

1. Property, plant and equipment

113,72127.8%

114,030

26.8%

Buildings and structures

45,88545,533

Machinery, equipment and vehicles

30,78829,345Land

20,19520,285

811

665

9,910

11,941

Lease assets
Construction in progress
Other

6,129

6,259

2. Intangible assets

27,805

6.8%

Goodwill

21,043

22,989

Other

6,762

7,140

3. Investments and other assets

43,491

Investment securities

28,65338,868Deferred tax assets

9,070

6,614

Other

5,768

5,433

Total assets

409,0832

10.6%

30,129100.0%

50,915425,507

7.1%

11.9%

100.0%

(Millions of yen)

(Liabilities)
I Current liabilities

As of September 30,
2010

As of March 31,
2010

AmountAmount%82,53320.2%%

99,731

Notes and accounts payable-trade

28,77027,367

Short-term loans payable

10,00020,000253219

8,390

12,994

Lease obligations
Income taxes payable
Deferred tax liabilities

27

Provision for bonuses

5,014

4,898

80

161

Notes and accounts payable - facilities

5,547

8,031

Other

24,474

26,049Provision for directors' bonuses

II Noncurrent liabilities

6,026

Lease obligations

559

463

Deferred tax liabilities

512

40

Provision for retirement benefits
Provision for directors' retirement benefits

984
586

4,677
658

Asset retirement obligations

768

－

Other

1.4%

2,615

Total liabilities(Net assets)
I Shareholders' equity

8,6362.0%

2,795

88,56021.6%

108,367

25.5%

352,950

86.3%

337,633

79.3%

Capital stock

38,716

38,716

Capital surplus

59,03059,030Retained earnings

332,029

316,703

Treasury stock(76,825)(76,817)

II Valuation and translation adjustments

23.5%(32,660)(8.0%)(20,711)(4.9%)

Valuation difference on available-for-sale securities(2,073)Foreign currency translation adjustment(30,586)
232

0.1%(23,046)
218

0.1%

320,52378.4%

317,13974.5%

409,083

100.0%

425,507100.0%III Minority interests
Total net assets
Total liabilities and net assets

32,335

(2) Consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2009
Amount%Six months ended
September 30, 2010
Amount%I Net sales
II Cost of sales
Gross profit

158,063100.0%

163,918

100.0%

74,79547.3%

78,31947.8%

83,26852.7%

85,59952.2%

III Selling, general and50,717

32.1%

52,893

32.2%

Operating income
IV Non-operating income

32,55020.6%

32,706

20.0%

771

0.4%

5,304

3.2%

28,174

17.2%

500

0.3%

295

0.2%

28,379

17.3%

9,973

6.1%

18,40642
18,364

11.2%
0.0%
11.2%

administrative expenses

Interest income

249

130

Dividends income

114

229

Royalty income

73

66

Equity in earnings of affiliates

4166

Other

437

915

0.6%

278

V Non-operating expenses
Interest expenses

85

47

Sales discounts

279

Foreign exchange losses

287
755

4,570

Loss on disposal of inventories

41

154

Other

57

Ordinary income
VI Extraordinary income
Gain on sales of noncurrent assets
Reversal of allowance for doubtful accounts

042

Gain on contribution of securities to retirement
benefit trust－1,227

0.8%

32,239

20.4%

252

6－
420.0%

494

VII Extraordinary losses
Loss on disposal of noncurrent assets
Valuation loss of marketable securities

52－

Directors' retirement benefit－

Income before income taxes
Income taxes-current

11,191

Income taxes-deferred

242

Income before minority interst
Minority interests in income

Net income for the period

4259
1952

0.0%

32,22920.4%

11,433

7.3%－
24
20,771

－
0.0%
13.1%

159,412561

(3) Consolidated Statements of Cash FlowsI(Millions of yen)Six months ended

Six months endedSeptember 30, 2009

September 30, 2010

AmountAmountNet cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Equity in (earnings) losses of affiliates
Increase (decrease) in provision for retirement benefits
Increase(decrease) in reserve for retirement benefits for directors
and corporate auditors
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for directors' bonuses
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on disposal of noncurrent assets
Loss (gain) on sales of noncurrent assets
Loss (gain) on sales of short-term and long term investment
securities
Loss (gain) on securities contribution to employees retirement
benefits trust
Transfer of securities to retirement benefit trust
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net

Sub-totalInterest and dividends income received
Interest expenses paid
Income taxes paid

Net cash provided by (used in) operating activities

32,2298,605
854
(41)
622

28,379
8,709
803
(66)
(3,146)

(1)

(72)

(24)
(77)

54(80)

(363)
85
705
52(0)

(359)
47
2,931
259
(6)

－

19

－

(494)

－

3,200

(5,554)(281)(1,749)3,029
38,089523(89)(6,589)31,934(5,129)(1,259)1,605(364)
35,031517(52)(14,260)
21,235(12,896)(1,715)

6,383(9,023)2(444)(107)
100(15,986)

3,788(11,733)
12(517)(10)－(10,175)(5,190)(98)(4)(3,038)(8,331)(555)(10,000)(119)(8)(3,038)(13,165)(3,490)7,061
55,067
62,128(5,596)84,87779,281II Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Capital gain from redemption of marketable securities

Net cash provided by (used in) investment activities
III Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Cash dividends paid

Net cash provided by (used in) financing activities
IV Effect of exchange rate change on cash and cash equivalents
V Net increase (decrease) in cash and cash equivalents
VI Cash and cash equivalents at beginning of period
VII Cash and cash equivalents at end of period

55. Segment Information[Business Segments](1) The Second Quarter of Fiscal Year Ending March 31, 2011

(Millions of yen)Six months ended
September 30, 2010
AmountSales to customer

Internal salesSegmentprofit

General Hospital business
77,302－
13,968
Cardiac & Vascular business
71,782－
18,507
Blood Transfusion business
12,472－
1,471
Consumer Healthcare business
2,089
－
(850)
Subtotal
163,647－
33,097
Adjustment
271
－
(391)
Total
163,918－
32,706
Notes:
1. The (391) million yen adjustment to segment profit is the sum of the (508) million yen
for Inventories and the 117 million yen for others.
2. Segment profit is adjusted to be consistent with operating income shown on thequarterly consolidated income statement.
(Additional Information)Starting in the first quarter of the current fiscal year, the "Accounting Standard for Disclosuresabout Segments of an Enterprise and Related Information" (Accounting Standard Board of Japan(ASBJ) Statement No.17, March 27, 2009) and "Guidance on Accounting Standard for Disclosuresabout Segments of an Enterprise and Related Information" (ASBJ Guidance No.20, March 21,2008) have been applied.
(2) The Second Quarter of Fiscal Year Ended March 31, 2010

(Millions of yen)Six months ended
September 30, 2009
AmountSales to customer

Internal sales

Segment
profitGeneral Hospital business
75,144－Cardiac & Vascular business
67,464－
Blood Transfusion business
11,819－Consumer Healthcare business
3,681－
Subtotal
158,109－
Adjustment
(45)
－
Total
158,063－
Notes: This table is to provide a comparative information to the table shown in (1).

14,112
17,342
1,224
463
33,143(593)
32,550(Note) Main products belonging to each business segment

Business segments

Main products

General Hospital business
Disposable medical devices
and Medical electronics

Syringes, Needles, Blood collection tubes, Solution sets, I.V.catheters, Infusion pumps,
Syringe pumps, Home parenteral nutrition system, Home oxygen therapy system, etc.

Pharmaceuticals

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

Diabetes care products

Blood glucose monitoring systems

Cardiac and Vascular business
Interventional systems

Angiographic catheters, PTCA balloon catheters, Coronary stents, Neuro interventionalcoils, etc.

Cardiovascular systems

Oxygenerators, Cardio-pulmonary bypass system, LVA system, etc.

Vascular grafts

Artificial vascular grafts, Stent grafts

Blood Transfusion business

Blood bags, Automated blood processing, etc.

Consumer Healthcare business

Digital Thermometers, Blood pressure monitors, Blood glucose monitors (OTC), etc.

6

(Supplemetary Information)[Geographic Segments](1) The Second Quarter of Fiscal Year Ending March 31, 2011

(Millions of yen)Six months ended
September 30, 2010
AmountSales to customer

JapanEurope
Americas
Asia and others
Subtotal
Corporate expenses / eliminations
Total

89,47526,492
30,631
17,319163,918－
163,918

Internal sales

27,599
2,116
2,992
8,034
40,743(40,743)－(2) The Second Quarter of Fiscal Year Ended March 31, 2010

Operatingincome

29,490
3,641
2,743
4,230
40,105(7,399)32,706(Millions of yen)Six months ended
September 30, 2009
AmountSales to customer

JapanEurope
Americas
Asia and others
Subtotal
Corporate expenses / eliminations
Total

87,784
27,21628,137
14,924
158,063－
158,063

7

Internal sales

23,516
2,236
2,835
7,674
36,263(36,263)－

Operatingincome29,889
4,064
1,684
4,374
40,012(7,461)
32,550