Half Year Financial Results for FYE/Mar 2009

Terumo Corporation
30, October 2008

-1-Sales Increasing But Operating Income decreased(Unit: Billion yen)

Net Sales

Rate ofchange

Q2 FYE/Mar. 2008

Q2 FYE/Mar. 2009

150.8

157.0

4%

Gross profit(%)

82.8 (54.9%)

84.3 (53.7%)

2%

S.G.A Expenses(%)

49.3 (32.7%)

52.8 (33.7%)

7%

Operating Income (%) 33.5 (22.2%)

31.5 (20.0%)-6%

Ordinary Income (%) 34.0 (22.5%)

32.8 (20.9%)-3%

Net Income

22.9

23.00%

1 US$ 119 yen
1EUR 162 yen

106 yen
163 yenAverage exchange rate-2-

11.1% yen appreciation
0.3% yen depreciation

Net Sales (by Region)
Double-digit growth continuing, excluding impact of foreign exchange(Unit: Billion yen)
+ 2%Outside Japan total

+ 1.8

Half
FYE Mar.
2008+6%(+ 14% excluding impact of foreign exchange)
Ratio of sales outside Japan to total sales

47%Æ48%79.5 81.3+13%0%+6%(+14%)(+13%)(+17%)

+3.4

0+0.9

27.3

Japan-3-

30.7

Europe28.9

28.9

Americas

15.1

16.0

AsiaHalf
FYE Mar.
2009

Net Sales (by Product Group)(Unit: Billion yen)
+1%(+2%)+0.4+8%Half
FYE Mar.
2008(+14%)+5.0

74.8+10%-14%(+14%)(-14%)

66.6

75.2
61.6

+1.1

12.6

‐0.4

11.5
3.0

GeneralHospital-4-

Cardiac &VascularBloodtransfusion

2.6

Consumer
Healthcare

Half
FYE Mar.
2009

S.G.A Expenses(Unit: Billion yen)

+3.5
S.G.A Expenses ratio
1.0 point increase

49.3

52.8

Half FYE Half FYE
ChangeMar. 2008 Mar. 2009
Personal

32.7%

33.7%

Logistics
Sales and Advertising
R&D
Depreciation Goodwill
OthersTotal

Half
FYE Mar. 2008-5-Half
FYE Mar. 2009

18.3
4.44.87.80.6
13.4
49.3

19.5
4.7
5.281
14.4
52.8

+1.2+0.3+0.4+0.2+0.4+1.0+3.5%

6.8%
6.5%
8.2%
2.6%
65.8%
7.2%
7.1%

The Impact of Uncommon Factors(Unit: Billion yen)

Sales
+10 %

Operating Profit
Foreign Exchange
Hepaflush
Revised NHI price- 9.2+10 %Foreign Exchange
Hepaflush
Revised NHI price
Changing the accounting &tax system

-5.5
150.8

157.0

33.5
31.5

Half
FYE Mar. 2008

-6-Half
FYE Mar. 2009

Half
FYE Mar. 2008

Half
FYE Mar. 2009

With Changing Assumed Exchange Rate
(Unit: Billion yen)

FYE/Mar 2009

FYE/Mar. 2009

FYE/Mar. 2009

Q2 Results

Revised Fcst.

Original Fcst.

157.0

310.0

318.0

Operating Income (%) 31.5 (20.0%)

62.0 (20.0%)

68.0 (21.4%)

Ordinary Income (%)

32.8 (20.9%)

61.0 (20.9%)

68.0 (21.4%)

Net Income

23.0

40.0

45.0

Net Sales

Average exchange rate

1 US$ 106 yen
1EUR 163 yen

Assumed 2nd half rate-7-101 yen
144 yen

1US$ 95 yen
1EUR 125 yen

100 yen
155 yenTopics◆Review of The 1st Half
◆Future Market Trends and Strategies-8-Review of The 1st Half

-9-Japan Business Expanding Stably◆Market growth is in extremely low, but◆Our business continuously growing even after NHI price revisions(Unit: Billion yen)

900

Sales
CAGR 3.5%

800
JP Healthcare expenditure
CAGR 1.5%

700

600

First half

Second half

FYE/Mar.2006-10-

FYE/Mar.2007

FYE/Mar.2008

FYE/Mar.2009

Interventional BusinessShowing Strong Growth in WW(Million dollar)(Million Euro)

140

90

120

CAGR 17%

CAGR 43%(incl. US direct salesand MV acquisition)

10060

80
Number of cases（PCI）

30

CAGR 3.3%

CAGR 33%60
Number of cases
（PCI）

40

CAGR -2.8%

2000
FYE/Mar.2006(First half)

FYE/Mar.2009(First half)

EuropeFYE/Mar.2006(First half)

FYE/Mar.2009 FYE/Mar.2006(First half)(First half)

Americas-11- Number of cases taken from JP Morgan Interventional Cardiology Market Model (July 20, 2008)

FYE/Mar.2009(First half)

Asia

New Member of Group “Clinical Supply”◆Already Started to strengthen sales force in Japan◆International marketing of its products to start in next fiscal year
◆Integration synergy in both development and production

Catheters for angiography-12-"Sniper"
Micro cathetersFuture Market Trends and Strategies-13-Things Taking Place, Now…
Drastic economic changes
Aging of society in progress
Increasing life style diseases

Growth inhealthcare expenditure

Tightening of regulations
for medical safety

Globally expanding business opportunities
with the keyword “Healthcare Economic Efficiency”-14-Strategy 1

Japanese Government Expects
Medical Devices To Improve Healthcare Economy◆In Sep, MHLW announced"New Vision of Medical Devices & Medical Technology Industry"◆The new vision to provide incentive towards productdevelopment improving economic efficiency in healthcare.

-15-

New Product Launch for Better Healthcare Economy◆New IV system, “EXFREE”‐A brand new connection method is developed,
contributing to safety improvements in IV solutions◆ A new pre-filled syringe: “AtvagoReverse”‐Integrating syringes with two drugs (neostigmine + atropine) contributing tosafety and efficiency-16-

Strategy 2

Catheterization with “TRI,” Outstanding Healthcare Economy◆ More minimally invasive‐Approaching cardiovascular system from a wrist artery◆ Easy hemostasis‐Drastically shorter time needed than conventional
methods (via femoral artery)◆ Enabling patients to walk back home
‐Patients can leave by foot, outpatient surgery possible“This is TERUMO Territory”
Pamphlet of TRI-related products※TRI (abbreviation of Transradial Coronary Intervention; Transradial = radial artery )-17-

Terumo = TRI , Global Expansion Through Unique Strategies◆A comprehensive range of products from access to hemostasis◆ From Japan to the world:
Together with the spread and penetration of this procedure
TRI Penetration rate
Japan : 45%
Europe: 25%
America : 5% orbelow
Asia: 25%

※As of March 2008 (Terumo estimates)-18-

Training Chinese doctors（Medical Pranex）

TRI symposium to celebrate the 100th anniversary ofJapanese emigration to Brazil

Strategy 3

Expanding Interventional Product Lineup◆Neuro intervention‐ Coils for cerebral aneurysms treatment+ Guidewires -- Launched in Q2+ Catheters -- Plan to be launched in 2nd half

◆PeripheralMISAGO (stent for femoral artery)-19-

HydroSoft（ Coils for cerebral
aneurysms treatment ）AZUR (coil for visceral arteries)

Strategy 4

Improving Production Capability and Profitability (1)Interventional Products◆Construction of a new building at Ashitaka Plant started◆Production capability to increase in America and Europe

Terumo Medical CO.
(U.S.A)A rendering of the newbuilding, Ashitaka Plant-20- (Scheduled to start operation in mid-2009)

Terumo Europe N.V.
(Belgium)Improving Production Capability and Profitability (2)Increase in Production Capability in Asia
◆Vietnamese plant: started operation in May◆Capacity expansion also planned in China and India

Changchun Terumo
Medical Products CO.,LTD-21-

Terumo Penpol LTD.

Terumo Vietnam CO.,LTD

Strategy 5

Value-added Approach &Pursuit of Operational Efficiency◆Terumo Medical Pranex
Training for medical professionals
in Terumo Medical Pranex◆EB (electron beam) sterilization system- Contributing to shortening lead time andreducing inventories◆Thoroughly efficient use of general overhead expenses, etc.

-22-Strategy 6

Development of Globally Important New Products
Making Steady Progress◆DuraHeart‐Clinical tests started in America (July)and in Japan (October) in succession‐Sales steady in Europe◆Nobori‐ Enrollment in Japan completedDuraheart（ Left Ventricular Assist System ）‐ Sales steady in Europe, drawing distinction from competitor’s price- Contributing to sales increase of PTCA and other peripheral products-23-Nobori（ Drug eluting stent ）Summary◆Global economy in confusion, but business opportunities increasing◆Keyword is “Healthcare Economic Efficiency”;
Terumo’s strategy = Needs of the age◆Phoenix2010 in progress toward better and increased profitability<Topic>Own shares acquisition is just resolved during the board of directors meeting today.
(up to 4M shares / JPY 20B valued).

-24-

IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@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 historical
trends. 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-