Refinancing Bridge Loan
Related to CaridianBCT Acquisition&Cancellation of Treasury Stock

Terumo Corporation
October 27,27 2011Refinancing bridge loan
related to CaridianBCT acquisition
Cancellation
Caaof treasurya y stock

2011/10/27©Terumo Corporation

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Refinancing Bridge Loan Related to CaridianBCT Acquisition

 Environment recognition
Economic and financial issues in EU
Downturn risk of U.S. and China economy

Refinancing
g the bridge
g loanwith cash on hand & debt
2011/10/27©Terumo Corporation

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Refinancing Bridge Loan of Total 220 Billion Yen
 Cash on hand:

30 billion yen Debt:

190 billion yen Targeted financial condition in 3 yrs
1HMar 2012
Mar.

Mar. 2014

Net D/E Ratio

0.4

0.2

Equity Ratio

48%

58%
2011/10/27©Terumo Corporation

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Cancellation of Treasury StockIn Board of Directors on Oct 27, 2011, Terumo resolved
a cancellation of all of its treasury stock, 20,996 K shares.

 Initial plan of holding treasury stock To utilize it in connection with strategic investments, in responding
to bbusinesssi ss environment
io m t Refinancing
g bridgeg loan with cash on hand & debt
 Few opportunities to utilize it in the foreseeable future

2011/10/27©Terumo Corporation

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Financial Results for the First Halfof the Fiscal Year Ending March 31
31, 2012

Consolidated 1H Results(billion of yen)

1H
Mar. 2011

1H
Mar. 2012*YoY%

Net Sales

163.9

190.7

+16%

Gross Profit

85.6 (52.2%)

103.1 (54.1%)+21%

SG&A Expenses

52 9 (32.2%)
52.9(32 2%)

68 5 (35.9%)
68.5(35 9%)+30%

Operating Income

32.7 (20.0%)

34.6 (18.2%)+6%(Excl Amortization of goodwill)(Excl.

33 5 (20.4%)
33.5(20 4%)

38 4 (20.2%)
38.4(20 2%)+15%

Ordinary Income

28.2 (17.2%)

31.3 (16.4%)+11%

Net Income

18.4 (11.2%)

17.7 ( 9.3%)-4%

US$ 89 yen
EUR 114 yen

80 yen114 yenAverage Exchange Rate

* Consolidated BCT Apr.-Sep. and Harvest May-Sep. results

2011/10/27©Terumo Corporation

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1H Results of BCT Stand Alone
Sustained strong performance
1HMar. 2012(billion yen)

Y Y%
YoY%
(Constant Currency)

Net Sales

22.8+13%Gross Profit

14 2(62.2%)
14.2(62 2%)+12%

SG&A Expenses

8.4 (36.6%)+15%

Operating Income

5.8 (25.6%)+ 8%

Ordinary Income

5 6 (24.6%)
5.6

Net Income

3.3 (14.5%)
Excluding newly accrued amortization of goodwill and intangible assets
2011/10/27©Terumo Corporation

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Excluding
BCT & Harvest

1H Results of Existing Business

Steady increase both in sales and income(billion yyen)
()

1H

1H

Mar. 2011

Mar. 2012

Net Sales

163.9

167.2

+2%

+5%

Gross Profit

85 6 (52.2%)
85.6(52 2%)

88 4 (52.9%)
88.4(52 9%)

+3%

+8%

SG&A Expenses

52.9 (32.2%)

53.8 (32.2%)

+2%

+4%

Operating Income32.7 (20.0%)

34.6 (20.7%)

+6%

+13%

Ordinary Income

28 2 (17.2%)
28.2

3 6 (18.9%)
31.6

+12%

Net Income

18.4 (11.2%)

19.3 (11.5%)

+5%

YoY%

Constant
Currency

Excluding newly accrued amortization of goodwill and intangible assets
2011/10/27©Terumo Corporation

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Excluding
BCT & Harvest

Net Sales (by Region)(billion of yen)

Consolidated: +2%(+5%)

1H
1H
M 2011 Mar.
Mar.
M 2012Japan

Outside of Japan

+2%

+2%
(+8%)

( ) Constant Currency

Europe+6%
(+7%)

27 3
27.3

-8%

28.7

28.9

Americas (+2%)
89.5 91.774.2 75.5

China+25%(+39%)

26.4
4.6
5.7+7%
Asia& others (+12%)

13.6
14 5
14.5

*Asia & Others: Comparing the results for the same period, Apr.-Sep.
2011/10/27©Terumo Corporation

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Excluding
BCT & Harvest

Net Sales (by Business Segment)(billion of yen)

-4%(-3%)+9%(+14%)

1H
Mar. 2011+0%((+4%)
)

77.3

74.0

71.8

( ) Constant Currency

78.5
12 5
12.5

12 5
12.5

+5%(+6%)
2.1

GeneralHospital

1H
Mar. 2012

Cardiac &Vascular

Blood
Management
2011/10/27

2.2

ConsumerHealthcare©Terumo Corporation

11/26Excluding
BCT & Harvest

Gross Profit Variance Analysis
0.3
0.3
04
0.4
0.6

Cost
down

0.6

Others0.3

Foreignexchange

Shift tohighly
profitableproducts
pPricesVolume

52.9%

52 2%
52.2%
1H
Mar. 2011

Average
Exchange Rate
US$:
EUR:

1H
Mar. 2011
89 yen114 yen

1H
Mar. 2012
80 yen114 yen
2011/10/27

1H
Mar. 2012©Terumo Corporation

12/26

Excluding
BCT & Harvest

SG&A Expenses(billion of yen)

1H
Mar 2011
Mar.

1H
Mar 2012
Mar.

YoY

YoY%

Salaries & Wages

19.5

19.5+0.0+0%

Sales Promotion

51
5.1

52
5.2+0 1+0.1+1%

Logistical Costs

4.7

5.1+0.4+8%

Depreciation
Di ti &Amortization

2.3

2.3+0.0+0%

Others

11.5

11.9+0.4+3%

General Admin Total

43.1 (26.2%)

44.0 (26.3%)+0.9+2%

R&D Expenses

9.8 (6.0%)

9.8 (5.9%)+0.0+0%

SG&A Expenses
ETotalT t l

52 9 (32.2%)
52.9(32 2%)53 8 (32.2%)
53.8(32 2%)+0 9+0.9+2%

2011/10/27( ) %: Against net sales©Terumo Corporation
13/26

Impact of the Earthquakes
 Assumed some business loss due to short supply of product,d l off new product
delay
d td
development,
lt andd market
k t shrinkage
hi k(billion of yen)

Mar 2012
Mar.

ImpactProjectedMay 11

ModifiedProjection
Jul 28

1HResults

2HForecast

Net Sales

-10

-7-4

-3

Estimating that the impact will not exceed the projection on Jul 28

2011/10/27©Terumo Corporation

14/26

Strong Performance: Nobori™
On track toward 20 billion yen of global sales(billion of yen)
20

Global Cumulative Sales
Mar. 201210

9 billion yen

20 billion yen

LaunchedIn JapanJapan
Outside of Japan

AprilSep
YTDMar
YTD(Forecast)
2011/10/27©Terumo Corporation

15/26

Improving Quality System to Reinforce CV BusinessObservations about quality system process at Terumo CVS’s
Ann Arbor plant were raised by FDA
Mar. 2011, Terumo CVS agreed to a consent decree w/ FDA
regarding quality system improvements
Under the agreement, a work plan to resolve the observations
was created by Terumo CVS (Approved by FDA,
FDA Sep.
Sep 2011)+ Further voluntary quality system improvement(billion of yen)

Impact on operating incomeProjection

1H

2HMar. 2012

for fiscal year

Results

Forecast

Additional cost34
3.4080.826
2.6

2011/10/27©Terumo Corporation

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Impacts on Forecast for Mar. 2012
(Against original forecast for Mar. 2012)
 Net Sales:-7.0 billion yen

 NewlyN l assumedd exchange
hratet ffor 2H-7.0
7 0 billi
billion yen(US$ 80 yen -> 75 yen, EUR 113 yen -> 103 yen)

 Operating income:-4.4 billion yen

 Newly assumed exchange rate for 2H-2.3 billion yen Improving
pgq
qualityy system
yof CV business -3.4 billion yyen
 Promoting efficiency and expense control +1.3 billion yen

2011/10/27©Terumo Corporation17/26

Forecast for Mar. 2012
New exchange rate & investment for quality system are incorporated(billion of yen)

Original Forecast

Revised Forecast

390.0

383.0

-7.0

Operating Income

67.0 (17.2%)

62.6 (16.3%)-4.4

O diOrdinaryIIncome

65 0 (16.7%)
65.0(16 7%)

58 0 (15.1%)
58.0(15 1%)

-7.0
70

Net Income

38.5 (9.9%)

32.5 (8.5%)-6.0

Operating
Income74.6 (19.1%)

70.0 (18.3%)

NNet
Income46.1 (11.8%)

39.9 (10.4%)

Net Sales

Excl. Amortizationof Goo
odwillAverage exchange rate2HMar. 2012
US$ 80 yen 80 yen
EUR 113 yen 113 yen

2H
US$ 75 yen
EUR 103 yen
2011/10/27

RevisionMar. 201277 yen108 yen©Terumo Corporation

18/26

2011/10/27©Terumo Corporation

19/26

ReferenceConsolidated 1H Results (Pro-forma comparison)
Increase in sales & income even at Pro-forma comparison(billion of yyen)()

Corresponding

1H

period of last yr

Mar. 2012

PPro-formafbbasis
i *1

YoY%

Net Sales

187.4

190.7

+2%

Gross Profit

100.4 (53.6%)

103.1 (54.1%)+3%

SG&A Expenses
SG&pe ses

68.1 ((36.3%)
68.
6. )

68.5 ((35.9%)
5. )+1%%Operating Income

32.3 (17.3%)

34.6 (18.2%)+7%

Average Exchange Rate

US$89 yen

80 yenEUR 114 yen

114 yen*1 Including BCT and Harvest

2011/10/27©Terumo Corporation

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1H Results to 1H Forecast(billion of yen)

Net Sales

1H Forecast

1H Results

191.0

190.7

Variance

Impact offoreignexchange-0.3+0.2+0.1+0 1

Operating Income

32 7(17 1%)
32.7(17.1%)

34 6(18 2%) +1.9
34.6(18.2%)+1 9

Ordinary Income

31.5(16.5%)

31.3(16.4%) -0.2

Net Income

18.5( 9.7%)

17.7( 9.3%)(US$)

80 yen80 yen(EUR)

113 yen

114 yen-0.8

Average exchange rate

2011/10/27©Terumo Corporation

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1H Results to Mar. 2012 Forecast(billion of yen)

Forecast
Mar. 2012

1HResults

Progress

Net Sales

383 0383.0

190.7
190 7

50%

Operating Income

62.6 (16.3%)

34.6 (18.2%)

55%

Ordinary Income

58.0 (15.1%)

31.3 (16.4%)

54%

N t IIncome
Netcom32 5 ( 88.5%)
32.55%)

17 7 ( 99.3%)
17.73%)

54%

(US$)

77 yen80 yen(EUR)

108 yen

114 yenAverage exchange rate

2011/10/27©Terumo Corporation

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Excluding
BCT & Harvest

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

GrossProfit

52.3

51.7

52.0

51.6

54.2

SG&AExpenses

32.0

32.5

34.7

31.3

33.1

20.3

19.2

17.3

20.3

21.1

Q2

Q3Q4

Q1

Q2

OperatingIncome

Mar. 2011

Mar. 2012(Quarterly: 3 months)
2011/10/27©Terumo Corporation

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Changes of Quarterly Average Exchange Rates
130

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

110

117
110
US$(M 2011)
US$(Mar.

90

US$(Mar. 2012)

8270
Q178

Q2

Q3Q4

(Quarterly: 3 months)
2011/10/27©Terumo Corporation

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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, forecasts of financial performance on
future projections contain potential risks and uncertainty since these are forecasts on
projections made by Terumo based on limited information available at the moment ofdisclosure. 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.

2011/10/27©Terumo Corporation

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