Financial Results for FYE/ Mar.2007&Business Plan for FYE/Mar.2008

Terumo Corporation1

Sales and profits enjoyed(Unit: billion yen)double-digit growth
FYE/Mar. 2006

FYE/Mar. 2007

Net Sales

247.0

276.4

Gross Profit (%)

135.7 (54.9%) 153.3 (55.5%) 13.0%

S.G.A Expenses (%)

87.4 (35.4%)

94.9 (34.3%)

Operating Income (%)

48.3 (19.5%)

58.5 (21.2%) 21.1%

Ordinary Income (%)

48.9 (19.8%)

58.0 (21.0%) 18.6%

Net Income (%)

32.5

37.2

Averageexchange rate

US$EUR

113 yen138 yen

117 yen
150 yenRate of change

11.9%

8.5%

14.7%
3.2% yen depreciation
8.8% yen depreciation
2

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

276.4

+29.4

247.0
45.5

+5.8

39.7

CV and vascular grafts(Growth rate: 14.5%)

64.0

+14.7

Interventional products(Growth rate: 30.0%)

28.8+0.5

Home health care products(Growth rate: 1.9%)

49.2
28.2

Consolidated total: 11.9% growth+8.3

129.9

138.2

FYE/Mar. 2006

FYE/Mar. 2007

General hospital products(Growth rate: 6.4%)

3

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

276.4

+29.422.9+3.4

19.5
38.6

52.7+14.1

Asia & Others 17.5% (11.7%)

39.6

48.4

+8.8

Americas36.6% (33.3%)

Europe22.2% (13.3%)

247.0

149.4

152.5

+3.1

Consolidated Net Sales
Growth rate
11.9% (9.5%)

Outside Japan 26.9% (20.9%)
Japan

FYE/Mar.2006

FYE/Mar.2007

Outside Japan sales ratio (%)
40%→45%

2.1%
Excluding impact offoreign exchange
4Details of S.G.A Expenses(Unit: billion yen)

94.9

+7.5

(Fluctuation rate)

87.4
18.0(15.7*)
9.1

16.8

-1.2 (+1.1*)

10.2+1.2+0.68.0

7.4
27.9

31.8

R&D

(Actual +6.6%)

Sales promotion andadvertising (+12.8%)
Logistics+3.9(+7.6%)

Personnel (+14.0%)
Others(+12.3%)

+3.1

2528

FYE/Mar. 2006

FYE/Mar. 2007

S.G.A Expenses rate
35.4%
34.3%

(-6.8%)*Excepted MicroVention one-time R&D expense▲1.1pt5

Toward Achieving the Goals of theMid-term Plan, STePUP2007

6

Cardiac & Vascular products driving growth, withgeneral hospital products sales steady(Unit: billion yen)300

Step UP 2007

General Hospital
70 Cardic & VascularHome health care250Operating income

6020015050100
4050030
FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008(Forecast)7

Outside Japan business greatly expanded while Japan sales
showed growth despite unfavorable conditions(Unit: billion yen)

Step UP 2007

180160140120100

Outside JapanJapan

806040200
FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008(Forecast)8

Growing products1) I.V. solution sets

◆I.V. solution sets for risk management increased sales(Unit: billion yen)

15
12.5
10I.V. solution
sales transition

7.552.50FYE/Mar.2004 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007

OrdinaryRisk management

9Growing products2) Pre-filled syringes◆Sales of Pre-filled syringes in Japan(Unit: billion yen)

◆Penetration of prefilled products
102% (1998)→15% (2005)

252051510500
FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008（Forecast）

USJapan（Terumo estimates）
10

Generic I.V. solution "Soldem" enjoying growth(Unit:Ten thousand bottles)

2,500

55%

2,000

50%
45%

1,500

40%
1,00035%50030%

025%
FYE/Mar.2002 FYE/Mar.2003 FYE/Mar.2004 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007

Quantity

Share in Japan（IMS data）

11

Overseas sales by region(Unit: billion yen)

Step UP 2007

140Europe

120100Americas

80

Asia & Others

60

CAGR 19.6%

40(FYE/Mar.2005 toFYE/Mar.2007)

200
FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008(Forecast)

12

European market◆Continuous high sales growth in interventional products◆Presence of vascular grafts (of Vascutek) playing a critical role
6050

(Unit: billion yen)
General hospitalInterventinal40

Cardiovascular
Vascular grafts

30Others

20

CAGR 18.0%(FYE/Mar.2005 toFYE/Mar.2007)100
FYE/Mar.2005

FYE/Mar.2006

FYE/Mar.2007

FYE/Mar.2008（Forecast）

13

Interventional business in Europe◆Grown in all product groups
20(Unit: billion yen)

15
Angiographic catheters
PTCA/StentOthers

1050
FYE/Mar.2005

FYE/Mar.2006

FYE/Mar.2007

14

Vascutek Strategy
Stent graft (Anaconda)◆Vascutek's sales transition■Minimally invasive therapy
in the surgical domain(Unit: billion yen)
10

Vascular grafts (BioValsalva)

9.655■Composite of biological valve
and synthetic vascular graft※Introducing the technology from Kohler Chemie0(Kohler's biological valve business acquired in Mar.2007)

When acquired

FYE/Mar. 2007

(January to December 2001)15

US market◆Drastic growth of intervention product sales (M&A+shift to direct sales)◆Planning business growth in cardiac surgery domain
60(Unit: billion yen)

50

General hospitalInterventional

40

Cadiovascular
Vascular grafts

30Others

20

CAGR 21.4%
10(FYE/Mar.2005 toFYE/Mar.2007)

0
FYE/Mar.2005

FYE/Mar.2006

FYE/Mar.2007

FYE/Mar.2008（Forecast）

16

Launching PTCA guidewire, “Runthrough NS”◆Taking advantage of No.1 positionin guide wire for angiographies in the US
Sales & share of PTCA guidewire in Japan(Unit: million yen)sales/share of “Runthrough NS”

1,500

30%
25%20%

1,00015%10%5005%0Sales
Share*Japanese market:
6.2 billion yen(Terumo estimates)

0%
FYE/Mar.2004 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.200717

New products in cardiopulmonary systems◆Endoscopic Vein Harvesting system, "VirtuoSaph"‐Jointly developed with Olympus and launched in the US in 2005
‐Sales in the US: about 900 million yen in FYE/Mar. 2007
⇒ Expected sales of 2.3 billion yen in FYE/Mar. 2008

"VirtuoSaph"

Scar from conventionalvein harvesting operation

Scar from VirtuoSaph18

Asian market◆Business properties similar to those of Japan◆Market expanding thanks to improving medical standards
25General hospital(Unit: billion yen)Interventinal
Cardiovascular systems
Vascular grafts

20Others

15

10

CAGR 19.1%(FYE/Mar. 2005 toFYE /Mar. 2007)

50
FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008（Forecast）

19

Expanding the supply of general hospital
medical devices◆Buildings of plant in Vietnam to be completed in May‐Production facilities to be move into the plant after completion of building construction‐ Mainly produces highly functional products contributing to medical safety

20

Left Ventricular Assist System®
"DuraHeart "Approved CE mark February 2007
◆ Europe- Launch scheduled in the first half of this fiscal year
- To be marketed by Vascutek Ltd.

◆ Japan- The Ministry of Health, Labour and Welfare
studying early approval◆ US- Application for clinical tests scheduledby the end of this fiscal year®

"DuraHeart "21

Drug Eluting Stent®
"Nobori "◆ Europe- Applied for the CE mark and awaiting the results- Sales in Europe and Asia to be started after CE marked◆ Japan- In the process of preparing for clinical tests

Drug Eluting Stent®

"Nobori "22

Striving to achieve the double-digit profit
growth in FYE/Mar. 2008
(Unit: billion yen)
FYE/Mar. 2007

FYE/Mar. 2008 (forecast)

Increaserate

Net Sales

276.4

300.09%Operating Income (%)

58.5 (21.2%)

64.0 (21.3%) 10% (13%)

Ordinary Income (%)

58.0 (21.0%)

64.0 (21.3%) 10% (13%)

Net Income (%)

37.2

41.2

Exchange rate forthe year

US$ 117 yen
EUR 150 yen

11% (14%)

US$ 115 yen (1.7% yen appreciation)
EUR 150 yen
Exclude impact of tax reforms– F.A. depreciation
23

Striving to achieve the double-digit profit
growth in FYE/Mar. 2008
(Unit: billion yen)
FYE/Mar. 2007

FYE/Mar. 2008 (forecast)

Increaserate

Net Sales

276.4

300.0

9%

Operating Income (%)

58.5 (21.2%)

64.0 (21.3%) 10% (13%)

Ordinary Income (%)

58.0 (21.0%)

64.0 (21.3%) 10% (13%)

Net Income (%)

37.2

41.2

Exchange rate forthe year

US$ 117 yen
EUR 150 yen

11% (14%)

US$ 115 yen (1.7% yen appreciation)
EUR 150 yen
Exclude impact of tax reforms– F.A. depreciation
24

IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: CCD@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 historicaltrends. 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.
25