Financial Results for the FYE Mar. 2012
&Initiatives for the FYE Mar. 2013

Terumo Corporation
May 10, 2012

Consolidated Results for FYE Mar. 2012(billion of yen)FYE Mar. 2011

FYE Mar. 2012*

YoY%Net Sales

328.2

386.7

+18%

Gross Profit

170.8 (52.0%)

204.6 (52.9%)+20%

SG&A Expenses

108.2 (32.9%)

141.6 (36.6%)+31%

R&D Expenses

20.4 ( 6.2%)

24.3 (6.3%)+19%

Operating Income

62.6 (19.1%)

63.0 (16.3%)+ 1%(Excl. amortization of goodwill)64.2 (19.6%)

70.6 (18.3%)+10%

Ordinary Income

56.9 (17.3%)

59.2 (15.3%)+ 4%

Net Income

32.3 ( 9.9%)

24.2 ( 6.2%)**-25%

Average Exchange Rate

US$ 86 yen

79 yenEUR 113 yen

109 yen*Consolidated BCT Apr.-Mar. and Harvest May-Mar. results* *Loss on revaluation and sales of stocks: 9.3B yen

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Terumo BCT Stand Alone(billion of yen)FYE Mar. 2012

YoY%(Constant Currency)

Net Sales

45.1

+ 8%

Gross Profit

27.8 (61.6%)+ 6%

SG&A Expenses

17.3 (38.3%)+ 17%

R&D Expenses

2.9 (6.5%)- 4%

Operating Income

10.5 (23.3%)- 9%

Ordinary Income

10.3 (22.9%)

Net Income

6.5 (14.5%)

If excluding expenses for
integration, operating income
grew at 2% year on year

Excluding newly accrued amortization of goodwill and intangible assets
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Excluding
BCT & Harvest

Existing Business(billion of yen)FYE Mar. 2011

FYE Mar. 2012

YoY%

Constant
Currency

Net Sales

328.2

339.8

+4%

+6%

Gross Profit

170.8 (52.0%)

175.5 (51.7%)

+3%

+6%

SG&A Expenses

108.2 (32.9%)

111.3 (32.8%)+3%+5%

Operating Income

62.6 (19.1%)

64.2 (18.9%)+3%+8%

Ordinary Income

56.9 (17.3%)

60.6 (17.8%)+6%

Net Income

32.3 ( 9.9%)

27.4 ( 8.1%)-15%

Excluding newly accrued amortization of goodwill and intangible assets
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Excluding
BCT & Harvest

Net Sales (by Region)(billion of yen)

Consolidated: +4%(+7%)

FYE
FYE
Mar. 2011 Mar. 2012
( ) Constant Currency

Japan+6%

Outside of Japan
+1%
(+8%)

Europe+2%(+6%)

56.6
57.5

-5%(+3%)

57.0
53.9

Americas177.1 188.5

149.2 151.3+28%
China(+38%)
Asia & +7%
Others (+11%)8.911.4
26.7
28.4

Asia & Others: Comparing the results for the same period, Apr.-Mar.
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Excluding
BCT & Harvest

Net Sales (by Business Segment)-2%(-1%)(billion of yen)

+10%(+14%)FYE
FYE
Mar. 2011 Mar. 2012

+9%(+13%)
149.5
152.8

( ) Constant Currency

158.8
144.6
24.5 26.7+10%(+10%)
4.3

GeneralHospital

Cardiac &Vascular

Blood
Management
2012/5/10

4.8

Consumer
Healthcare©Terumo Corporation

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Excluding
BCT & Harvest

Gross Profit Variance Analysis
0.3
0.3
0.7

Costdown

0.4

Shift toForeign
highlyprofitable exchange
products

0.2
Prices1.0

VolumeCost for
Quality System
improvement

52.0%
FYE Mar. 2011

51.7%

FYE Mar. 2012
Average Exchange Rate
US$EURFYE Mar. 2011
86 yen113 yenFYE Mar. 2012
79 yen109 yen

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Excluding
BCT & Harvest

SG&A Expenses(billion of yen)FYE Mar. 2011

FYE Mar. 2012

YoY

YoY%

Salaries & Wages

38.9

39.0+ 0.1+0%

Sales Promotion

10.5

11.1+ 0.6+6%

Logistical Costs

9.6

10.0+ 0.4+4%

Depreciation &Amortization

4.7

4.6- 0.1-2%

Others24.1

25.4+ 1.3+5%

General Admin Total

87.8 (26.7%)

90.1 (26.6%)+ 2.3+3%

R&D Expenses

20.4

21.2(6.2%)+ 0.8+4%

SG&A Expenses Total

108.2 (32.9%)

111.3 (32.8%)+ 3.1+3%(6.2%)

2012/5/10( ) %: Against net sales©Terumo Corporation
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CV Business: Return to Profitability in FYE Mar. 2015
TCVS’s impact on overall CV business sales is limitedOnce temporary investment in quality management system settled,then profit to recover
40400Sales
売上Operating Income
営業利益(billion of yen)

3030020200100
1000-100-10FYE Mar.2011

Mar. 2012

Mar. 2013

Mar. 20142012/5/10Mar. 2015

©Terumo Corporation

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Dividend Forecast for Year-end of FYE Mar. 2012
 Basic policy for profit allocation
 It is to stably increase dividends to shareholders in accordance withbusiness performance, investment plan and other aspects. In order toclarify the policy, the management will aim for the target dividend payout
ratio of 30% over the medium to long term.

 Dividend forecast for year-end FYE Mar. 2012
 Year-end: 22 yen/share(year-end of FYE Mar.2011:18yen(incl. commemorative dividend of 2yen)) Annual total: 39 yen/share (annual total of FYE Mar. 2011: 34yen)
 Dividend payout ratio: 30.6% (ratio of FYE Mar. 2011: 20.0%)

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Forecast for FYE Mar. 20132012/5/10©Terumo Corporation

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Forecast for FYE Mar. 2013
(billion of yen)FYE Mar. 2012
ActualFYE Mar. 2013
Forecast

YoY%Net Sales

386.7

410.0

+6%

Operating Income

63.0

60.0-5%(Excl. amortization of goodwill)

70.6

67.6

-4%

Ordinary Income

59.2

58.0-2%Net Income

24.2

34.0+41%

Average Exchange Rate

US$79 yen

80 yenEUR 109 yen

105 yen

2012/5/10©Terumo Corporation

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Still, Maintain Investments in Growth Strategy(billion of yen)

Operating Income
Revision of JP
reimbursement price

63

▲73+

Recoveryof TCVS
business

7+

Effect ofincreased
production

60

FYE Mar. 2012

Mar. 2013

Mar. 20142012/5/10©Terumo Corporation

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Factors Affecting Operating Income
 Factors affecting the decline in operating income
 Revision of reimbursement price in Japan
 Increase in depreciation expense Investment in quality system improvement

 Investment in growth strategy New product development and clinical studies
 Nobori®: clinical studies for long-term efficacy(Late stent thrombosis, Combination of anti-platelet therapy)

 IT infrastructure
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Sustainable Profit Growth

At constant currency, operating income in subsequent FY ofreimbursement price revision has recovered and returned togrowth path
80
800
70
700
600
60
500
50400
40300
30200
20100
1000

Operating Income(billion of yen)(at constant currency)

6360

Year of when reimbursement priceis revised in JP

FYEMar.2006
2006/3期

Mar. 2008 2010/3期
Mar. 2010 2012/3期
Mar. 2012
Mar. 2014
2008/3期
2014/3期
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Integrate “Consumer Healthcare” into “General Hospital”
MARKET

MedicalInstitutions

Dispensing
Pharmacy

Electronics
Retail Stores

General HospitalBusiness
Consumer Healthcare
Business

Bring Consumer Healthcare
business back to medical front

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Growth Opportunities

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Growth Opportunities: Business x Region x New Field
 Business:
5 Growth Opportunities incl. Blood Management,
Global D&D, Minimally Invasive Treatment
 Region:
Boost the strategies in emerging countries New field:
Further growth by newly gained technologies

2012/5/10©Terumo Corporation

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Business: “Terumo BCT” Kicked into Gear

CaridianBCT & Terumo transfusion becomes “Terumo BCT”
and kicked into gear in Apr. 2012

Global leadershipCorporate management meeting held at its HQs in Colorado, US

Seamless integration of sales & customer service

HQs: Colorado, U.S., President: David Perez

Integration of sales force completedProduction integration in progressA new factory to be established in Vietnam

Operation to be started in summer of 2015 (plan)
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Business: Intradermal Injection Device for Vaccine
Agreement w/ Daiichi Sankyo to co-develop a new vaccine
utilizing Terumo’s intradermal injection deviceOnly with 1/5 of conventional volume of vaccine,the effectiveness equal to or greater can be expected *Rapid effect to be exerted *Improved safety & ease-of-use

Reduced injection pain

Aim to make it in practical use
in 2016
Image* These are the expected effects of intradermal injection for vaccine based on the result of basic research.
2012/5/10©Terumo Corporation

20/32Business: More Development Projects in Minimally Invasive Treatment(# of projects)

706050403020100

New Poduct Development Projects
Minimally Invasive Treatment

64581610Launched

As of Announcement
中計発表時
Mid-term
plan

Newly addedprojects

FYE Mar. 20122012/3期

Primary new products launched Nobori® Drug Eluting Stent (Japan)
 Kymerax™ Handheld robot (EU) Senri® PTA Balloon Catheter (EU & Japan)
 LVIS Stent to support neuro coil (EU) Total 10 new products
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Starting OFDI in Global Market
 Clear image for even safer and more reliable intervention
 High resolution to precisely diagnose intravascular conditionand stent apposition
 Superior deliverability and cross-ability in delivery catheter EU launch to be in FYE Mar.2013 and JP in FYE Mar.2014
 Sales projection: 0.3B yen(FYE Mar.2013) & 3.5B yen(FYE Mar.2015)
IVUS (Ultrasound)

OFDI (Light)

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Peripheral Self-expanding Stent to Be Launched in JP Self-expanding stent for peripheral vascular Even more flexible and durable
 High long-term patency
 The world first rapid exchange system for peripheral stent Precise and easy stent deployment
 Sales projection: 0.3B yen (FYE Mar.2013) and 2B yen (FYE Mar.2015)2012/5/10©Terumo Corporation

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Region: China–New Businesses to Boost Growth Establish the model of “local production & sales”
ODM agreement of infusion pumps: Beijing KellyMed Co., Ltd
OEM supply agreements of infusion set:Shenzhen Baoan Medical Supply Co., Ltd
Dragon Heart Medical Devices Co., LtdEstablish a joint venture for
peritoneal dialysis business: WEGO

Target sales of 20B yen in FYE Mar. 20142012/5/10©Terumo Corporation

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New Field: U.S. Harvest to Address Critical Limb Ischemia
 Treatment for CLI (Critical Limb Ischemia) Injection of BMAC(autologous bone marrow concentrate) intoleg to form new blood vessels

 Progress EU: under review for CE Mark
(Launch to be in FYE Mar.2013)
 U.S.: under clinical study(Launch to be in FYE Mar.2015)

Before injection
2012/5/10

After injection©Terumo Corporation

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ReferenceConsolidated Q4 Results(billion of yen)
Q4
FYE Mar. 2011 (*)

Q4
FYE Mar. 2012

YoY%Net Sales

84.097.8+16 %Gross Profit43.6(52.0%)

50.7 (51.8%)+16 %SG&A Expenses

29.1(34.7%)

37.5 (38.3%)+29 %R&D Expense

5.9 (7.0%)

6.7 (6.9%)+14%

Operating Income

14.5(17.3%)

13.2 (13.5%)-9 %Ordinary Income

14.0(16.7%)

12.8 (13.1%)-8 %Net Income

4.9( 5.8%)

2.2 ( 2.3%)-55%

Average Exchange Rate

US$ 82 yen
EUR 113 yen

79 yen104 yen(*)Include the effects of adjustments to accounting period for consistency with the company’s own fiscal year
2012/5/10©Terumo Corporation

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Consolidated 2H Results to Forecast(billion of yen)2H Forecast

2H Results

Achievement

192.3

196.0

102%+3.1(1.6% P addition on achievement)

Operating Income 28.0(14.6%)

28.4(14.5%) 101%+0.7(2.5% P addition on achievement)

Ordinary Income

25.7(13.4%)

27.9(14.2%) 109%Net Income

8.3( 4.3%)

6.5 ( 3.3%)(US$)

75 yen78 yen(EUR)

105 yen104 yen

Net Sales

Impact of currency

78%

Average Exchange Rate

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Excluding
BCT & Harvest

Gross Profit, SG&A Expenses, Operating Income(%)

GrossProfit

52.0

51.6

54.2

50.8

50.1

SG&AExpenses34.7

31.3

33.1

32.6

34.1

Operating
Income

17.3

20.3

21.1

18.2

16.0

Ｑ4Ｑ1Ｑ2Ｑ3Ｑ4

FYE Mar. 2011

FYE Mar. 2012
(Quarterly: 3 months)
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R&D Expenses(billion of yen)

30+19%

25+16%

20

24.3

1510

15.8

17.2

17.5

20.4

50
FYE Mar.2008 Mar. 2009

Mar. 2010

Mar. 20112012/5/10

Mar. 2012©Terumo Corporation

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Changes of Quarterly Average Exchange Rates
130

EUR (FYE Mar. 2011)
EUR (FYE Mar. 2012)

110117110104

104

78

7779

Q2Q3Q4

US$ (FYE Mar. 2011)9070

82
US$ (FYE Mar. 2012)

Q1(Quarterly: 3 months)

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IR Contact
Terumo Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp

Among the information that Terumo discloses, the forward-looking statements
including financial projections are based upon our assumptions using information
available to us at the time and are not intended to be guarantees of future events orperformance. 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.
The market share information in this presentation is partly derived from our own
independent research.

2012/5/10©Terumo Corporation

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