Financial Results for the Fiscal Year Ended March 31, 2017
May 10, 2017
Exchange where listed: TSE

Name of listed company: TERUMO CORPORATION(URL http://www.terumo.com/): 4543: Shinjiro Sato, President and CEO: Atsuo Omagari, General Manager, Corporate Communication Dept.
: +81 / 3-6742-8550

Company code number
Representative:
Please address all communications to
Phone

1. Consolidated Financial Highlights for the Year Ended March 2017
(From April 1, 2016 to March 31, 2017)(1) Consolidated operating results(Notes: The amounts shown below ignore values of less than a million yen)

Net salesYear ended March, 2017
Year ended March, 2016
(Notes) Comprehensive income:Operating income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

514,164
525,026(2.1)
7.3

76,57881,703(6.3)
21.1

68,55273,090(6.2)
3.3

54,22550,6767.0
31.7

March 2017: 36,498 million yen (154.2%)

March 2016: 14,358 million yen (-83.9%)

Net income per share,
fully diluted

Net income per share(Yen)

Year ended March, 2017
Year ended March, 2016
(Notes) Equity in earnings of affiliates:

Profit attributable toowners of parent

Ordinary income

Net income per stockholders'equity(Yen)

150.15135.14
March 2017: -559 million yen

140.04126.36
March 2016: 328 million yen

Ordinary income
per total assets

Operating income
per Net sales

%

%

%

10.8
9.3

7.1
7.7

14.9
15.6

(2) Consolidated financial position
Total assets
As of March 31, 2017
As of March 31, 2016
(Notes) Shareholders' equity:

Net assets

Equity ratio

Net assets per share(Millions of yen)

(Millions of yen)

%

(Yen)

1,021,405
901,685

489,554511,54447.9
56.7

1,389.70
1,408.53

March 31, 2017: 489,145 million yen

March 31, 2016: 511,252 million yen(3) Consolidated statements of cash flows

Year ended March, 2017
Year ended March, 2016

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

80,86280,303(181,433)(23,495)

60,937(79,936)

105,046
146,927

Cash and cash equivalents,
end of period

2. Dividends
Cash dividends per share
1st quarter

Year ended March, 2016
Year ended March, 2017
Year ending March, 2018 (forecast)

4th quarter

Total dividends(annual)

Total

Payout ratio(consolidated)

Ratio of dividends
to net assets(consolidated)

2nd quarter3rd quarter

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

(Millions of yen)

%

%

－
－
－

19.00
20.00
22.00

－
－
－

20.00
22.00
22.00

39.00
42.00
44.00

14,39815,002

28.9
28.0
29.2

2.7
3.0

3. Consolidated Forecast for the Year Ending March, 2018 (From April 1, 2017 to March 31, 2018)
Net sales(Millions of yen)

Operating income%(Millions of yen)%

276,000
39,00012.6(0.9)
575,000
82,000Year ending March, 2018
11.8
7.1
(Notes) Assumed exchange rate for fiscal year ending March, 2018: USD1=JPY110, EUR1=JPY120

Half year ending September, 2017

Profit attributable toowners of parent

Ordinary income(Millions of yen)%

(Millions of yen)

37,50079,50022.5
16.0

25,00053,000Net income per share
%

(Yen)

22.4
(2.3)

71.03
150.58

3.
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 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 foreignexchange rates, and state of competition.

14. Financial Statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AmountAmount(Assets)III%
374,746

Cash and deposits

149,672

105,388

Notes and accounts receivable-trade104,426

109,508

Merchandise and finished goods

59,132

69,765Work in process

10,194

9,367

Raw materials and supplies

27,126

27,579Deferred tax assets

14,963

17,501

Other

10,621

11,503

Allowance for doubtful accounts(1,390)(1,430)Noncurrent assets
1 Property, plant and equipment

349,18357.9

668,052

65.4

175,79419.5

183,12217.9

65,20763,310Machinery, equipment and vehicles

54,36253,359Land

23,29722,471

Construction in progress
Other

881

1,780

21,41730,445

10,6282 Intangible assets

290,514

11,75432.3

454,717

Goodwill

143,707

Customer relationships

90,75085,338Developed Technology

28,017

105,581

Other

28,03846,4633 Investments and other assets

55,34844.5

217,334

6.1

30,212

Investment securities, including investments inunconsolidated subsidiaries and affiliates

37,724

12,463

Deferred tax assets

3,436

6,727

Retirement benefit assets

34.1

521,657

Buildings and structures

Lease assets

III

41.5

%

Current assets

3.0

－

757

Other

14,186

10,263

Deferred assets

5,281

0.6

4,169

0.4

901,685

100.0

1,021,405

100.0

Total assets2

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AmountAmount(Liabilities)
I%

Current liabilities

168,835

Notes and accounts payable-trade36,29438,451

61

120,000

19,839

7,853

256

231

Current portion of bonds payable

40,000－

Income taxes payable

9,778

9,688

Deferred tax liabilities

56

23

Provision for bonuses

5,869

6,317

Short-term debt
Current portion of long-term debt
Lease obligations

Provision for directors' bonuses
Notes and accounts payable-facilities
Asset retirement obligations

II

18.7

%
248,389

170

190

5,451

7,059

－

72

Other

51,05758,502

Noncurrent liabilities

221,304

Bonds payable

24.6

283,462－

30,000Convertible bonds with subscription rights to shares

100,184

100,135

Long-term debt

58,87380,578

Lease obligations

286

230

45,07947,501

Deferred tax liabilities
Provision for directors' retirement benefits
Retirement benefit liabilities
Asset retirement obligations

66

14

8,656

6,803

24.3

27.8

230

84

Other

7,925

18,113

Total liabilities

390,140

43.3

531,851

52.1

I

Shareholders' equity

445,17849.4

440,680

43.2

Capital stock

38,716

II

38,716

Capital surplus

50,92850,928Retained earnings

419,573459,261

Treasury stock(64,040)(108,225)

Accumulated other comprehensive income

66,074

Unrealized gains (losses) on available-for-sale securities,
net of taxes

16,308

1,706

(13)

(560)

Foreign currency translation adjustments

63,18256,257

Accumulated adjustments for retirement benefits, net of taxes(13,403)

Deferred gains (losses) on hedges, net of taxes

III

Stock subscription rights

IV

Non-controlling interests

183

7.3

48,464

4.7(8,938)
0.0

307

0.0

109

0.0

101

0.0

Total net assets

511,54456.7

489,554

47.9

Total liabilities and net assets

901,685

100.0

1,021,405

100.0

3

(2) Consolidated statements of income(Millions of yen)
For the year ended

For the year ended

March 31, 2016

March 31, 2017

AmountAmount%%I

Net sales

525,026

II

Cost of sales

242,170

236,164

282,856

278,000

III

Selling, general and administrative expenses

Gross profit

Non-operating income

0.5

Dividends income

277

203

Royalty income

209

137

Equity in earnings of affiliates

328

－

1,375

76,578

14.9

2,057

0.4

10,0832.0

1,218
11,4682.2

Interest expenses

1,395

Sales discounts

437

438

7,485

4,100

Equity in losses of affiliates－

559

Loss on disposal of inventories

82

848

Structural reform-related expenses

222

703

Amortization of business commencement expenses

278

1,111

1,567

1,115

Other

1,205

Ordinary income

73,09013.9

68,552

13.3

Extraordinary income

7,494

1.5

16,442

3.2

10,012

1.9

Gain on sales of property, plant and equipment
Gain on sales of investment securities
Subsidy income
VII

2,856

497

Foreign exchange losses

VI

15.6

665

Non-operating expenses

100.0

201,42181,703

Interest income

Other
V

514,164

201,152

Operating income
IV

100.0

4,917

366

793

15,792

1,783

284

Extraordinary expenses

3,665

Loss on disposal of property, plant and equipment

0.7

895

1,652

Impairment loss

1,010

－

Settlement paid

1,656

－

102

－

Restructuring loss

－

1,375

Loss on valuation of investment securities

－

2,178

Loss on valuation of other investments

－

4,805

Loss on liquidation of subsidiaries

Income before income taxes
VIII Income taxes
Current

27,718Differed(1,427)

ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

476,92014.7

74,981

14.6

26,2905.0

20,867

4.1

54,114

10.5

25,640(4,772)
50,630

9.7

(46)

(0.0)

(111)

(0.0)

50,676

9.7

54,225

10.5

(3) Consolidated statements of comprehensive income(Millions of yen)
For the year ended
March 31, 2017
Amount

For the year ended
March 31, 2016
AmountI
II

ProfitOther comprehensive income
Valuation difference on available-for-sale securities, netof taxes
Deferred gains or losses on hedges, net of taxes
Foreign currency translation adjustments
Adjustments for retirement benefit
Share of other comprehensive income of associates
accounted for using equity method, net of taxes
Comprehensive income
Attributable to:50,630(36,272)(602)(15)(25,864)(9,792)(14,601)(546)(6,931)
4,465

2

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

5

54,114(17,615)(0)
14,35836,49814,40836,616

(50)

(118)

(4) Statement of changes in net assets(Millions of yen)
Shareholders' equity
Year ended March 2016
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Capital stock

Capital surplus

38,71652,103(1,175)50,92838,716

Retained earnings

Treasury stock

383,317(1,220)382,097(3,035)(3,035)

Shareholders'equity total
471,102(2,396)
468,706(13,200)
50,676(13,200)
50,676(61,004)－(61,004)－
38,716－50,92837,476
419,573(61,004)(64,040)(23,528)
445,178

Accumulated other comprehensive income

Year ended March 2016
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Valuation difference
on available-for-sale securities
16,910Remeasurements ofdefined benefit plans(3,611)

Accumulated othercomprehensive income total
102,341

Subscription
rights toshares78

noncontrollinginterests－

Foreign currencytranslation adjustments
89,043－89,043(3,611)

102,34178－

573,523(2,396)571,126(13,200)
50,676(61,004)－(36,053)(59,582)
511,544

Deferred gains orlosses on hedges

16,910(602)(602)
16,308

(13)
(13)
(13)

(25,860)(25,860)
63,182－

Net assets
total(9,792)(9,792)(13,403)(36,267)(36,267)
66,074

105
105
183

109
109
109

Remeasurements ofdefined benefit plans(13,403)

Accumulated othercomprehensive income total
66,074

Subscription
rights toshares183

noncontrollinginterests

Net assets
total

(13)

Foreign currencytranslation adjustments
63,182

109

511,544(13)

63,182(13,403)

66,074183

109

511,544

(7)
(7)
101

(14,518)
54,225(44,227)
22(17,493)(21,990)
489,554(Millions of yen)
Shareholders' equity
Year ended March 2017
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Capital surplus

Retained earnings

38,71650,928419,573(64,040)

Shareholders'equity total
445,178

38,71650,928419,573(64,040)

445,178(18)(44,227)
41(14,518)
54,225(44,227)
22

39,688459,261(44,185)(108,225)(4,497)440,680

Capital stock

Treasury stock(14,518)
54,225－38,716－50,928

Accumulated other comprehensive income
Year ended March 2017
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Valuation difference
on available-for-sale securities
16,30816,308(14,601)(14,601)
1,706

Deferred gains orlosses on hedges

(547)
(547)
(560)

(6,925)(6,925)56,257

6

4,465
4,465
(8,938)(17,609)(17,609)48,464

124
124
307

(5) Consolidated statements of cash flows

I(Millions of yen)

For the year ended

For the year ended

March 31, 2016

March 31, 2017

AmountAmountNet cash provided by (used in) operating activities
Income before income taxes

76,92074,981

Depreciation and amortization

33,67934,153

Impairment loss

1,010

－

Amortization of goodwill

10,995

11,247

Equity in losses (earnings) of affiliates

(328)

559

(6,890)(757)

Increase (decrease) in retirement benefit liabilities(220)(1,774)

Increase (decrease) in allowance for doubtful accounts

(22)

66

－

(52)

Decrease (increase) in retirement benefit assets

Increase (decrease) in provision for directors’ retirement benefits
Increase (decrease) in provision for directors’ bonuses

28

20Interest and dividend income

(942)

(701)

Interest expense

1,395

1,205

Foreign exchange losses (gains)

4,321

2,881

Structural reform-related expenses

222

703

Amortization of business commencement expenses

278

1,111

Loss (gain) on sales of property, plant and equipment(4,917)

(366)

895

1,652

Loss (gain) on disposal of property, plant and equipment
Loss (gain) on sales of investment securities(793)(15,792)

Subsidy income(1,783)(284)

Settlement package

1,656

－

102

－

Restructuring loss

－

1,375

Loss on valuation of investment securities

－

2,178

Loss on valuation of other investments

－

4,805

(3,138)(4,784)398(3,921)

Loss on liquidation of subsidiaries

Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade(1,492)886

Other, net

5,305

(254)

116,679

109,140

SubtotalInterest and dividend income received

1,751

784

Interest expenses paid

(1,445)(1,190)

Income taxes paid

(36,451)(24,845)－(1,493)

Payments for structural reform-related expenses

(409)

(450)

Subsidy income received

1,783

284

Settlement paid

Payments for loss on liquidation of subsidiaries
Payments for restructuring loss
Payments for loss on liquidation of businessNet cash provided by (used in) operating activities

(83)

－

(1,390)(1,365)(132)－

80,30380,862II Net cash provided by (used in) investing activities
Payments into time deposits(1,766)(298)

Proceeds from withdrawal of time deposits

1,796

2,443

Purchase of property, plant and equipment(28,209)(29,838)

Proceeds from sales of property, plant and equipment

5,135

1,315

Purchase of intangible assets(4,703)(6,680)Purchase of investment securities(3,505)(1,243)

Proceeds from sales of investment securities

10,802

21,440

Collection of lease deposits

39－

Payments for transfer of business－－(119,191)(49,380)

Purchase of investments in subsidiaries resulting in change in scope of consolidation
Other, net(3,082)(0)(23,495)(181,433)

Proceeds from short-term debt－

120,000

Repayments of short-term debt

(298)

(58)

Proceeds from long-term debt－

29,640

Repayments of long-term debt

(5,416)(19,460)

Net cash provided by (used in) investing activities
III Net cash provided by (used in) financing activities

Proceeds from issuance of bonds－

29,888

Redemption of bonds－(40,000)

Proceeds from share issuance to non-controlling shareholders

181－

Repayments of finance lease obligations

(197)

(325)

Purchase of treasury stock(61,004)(44,227)

Cash dividends paid

(13,200)(14,518)(79,936)

60,937

Net cash provided by (used in) financing activities
IV Effect of exchange rate changes on cash and cash equivalents(6,606)(2,246)

V Net increase(decrease) in cash and cash equivalents(29,734)(41,880)

VI Cash and cash equivalents at beginning of the year

176,662

146,927

VII Cash and cash equivalents at end of the year

146,927

105,046

7

5. Segment Information[Reportable Segments](1) Fiscal Year Ended March 31, 2016

(Millions of yen)
Reportable Segments
Cardiac and
VascularCompany

GeneralHospitalCompany

Blood
Management
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

258,600

161,382

105,042525,026

－

－

－

－

－

－

－

Sales total

258,600

161,382

105,042525,026－

525,026

Segment income (Excl. Amortization)

63,41922,613

16,944

102,977(1,121)

101,855

Segment income (loss)

61,616

22,613(1,405)82,824(1,121)

81,703

24.5

14.0

16.1

19.6

－

241,798

166,727

326,728735,254

Depreciation and amortization

9,181

9,938

13,752

Amortization of goodwill
Net increase of tangible andintangible noncurrent assets

1,803

－

9,191

15,526

8,507

7,218

Internal sales

Segment income(%)(Excl. Amortization)
Segment assets

525,026

19.4

166,431901,685

32,872806

33,67910,995－

10,99531,252201

31,454

Others:

Notes: 1. The (1,121) million yen adjustment to segment income is the sum of (1,096) million yen for inventories and (24)
million yen for others.
2. Adjustment to segment assets, which amounted to 166,431million yen, mainly includes investments in "Cash anddeposit", "Investments securities", "Deferred tax assets" and assets of the Administrative Department.

(2) Fiscal Year Ended March 31, 2017

(Millions of yen)
Reportable Segments
Cardiac and
VascularCompany

GeneralHospitalCompany

Blood
Management
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

261,529

157,946

94,483513,959

205

－

－

－

－

－

－

Sales total

261,529

157,946

94,483513,959205

514,164

Segment income (Excl. Amortization)

65,024

23,772

13,636

102,433(5,075)97,358Segment income (loss)

60,787

23,772(2,906)81,653(5,075)76,578

24.9

15.1

14.4

19.9

－

451,660

158,946

317,731928,338

Depreciation and amortization

10,854

9,690

12,922

Amortization of goodwill
Net increase of tangible andintangible noncurrent assets

2,962

－

8,285

19,591

8,600

6,905

Internal sales

Segment income(%)(Excl. Amortization)
Segment assets

514,16418.9

93,066

1,021,405

33,468684

34,153

11,247－

11,24735,097

3,994

39,091Others:

Notes: 1. The 205 million yen adjustment to Sales to customer is proceeds from temporary staffing that is not attributableto reportable segments.
2. The (5,075) million yen adjustment to segment income is the sum of (553) million yen for inventories and (4,521)
million yen for others.
3. Adjustment to segment assets, which amounted to 93,066 million yen, mainly includes investments in "Cash anddeposit", "Investments securities", "Deferred tax assets" and assets of the Administrative Department.

8

(Note) Main products belonging to each business segment
Business segments
Sub-segments
Interventional Systems (TIS)

Cardiac and Vascular Company

General Hospital Company

Blood Management Company

Main products
Angiographic guidewires, Angiographic
catheters, PTCA balloon catheters, Vascularclosure devices, Coronary stents, etc.

Neurovascular

Neuro interventional coils, etc.

CV Systems

Oxygenators, Cardio-pulmonary bypass system,
etc.

Vascular Graft

Artificial vascular grafts, Stent grafts

General Hospital Products

Solution sets, I.V.catheters, Infusion pumps,
Syringe pumps, Syringes, Needles, Bloodcollection tubes, etc.

D&D

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

DM and Consumer Healthcare

Blood glucose monitoring systems, Digital
thermometers, Blood pressure monitors, etc.

－

9Blood bags, Automated blood collection system,
Automated blood component processing system,
Centrifugal apheresis system, Cell expansion
system, etc.

(Supplementary Information)[Geographic Segments](1) Fiscal year ended March 31, 2016

(Millions of yen)Japan

Americas

EuropeAsia and others

Total(United states)

Sales

187,210

101,802

143,462

122,559

92,550525,026

Tangible noncurrent assets

106,223

9,754

29,446

19,71430,369

175,794(2) Fiscal year ended March 31, 2017

(Millions of yen)Japan

Americas

Europe(United states)

Asia and others

Total

Sales

187,000

95,013

139,698

119,879

92,451

514,164

Tangible noncurrent assets

105,977

9,719

37,277

27,95230,148183,122[Impairment Loss on noncurrent assets](1) Fiscal year ended March 31, 2016

(Millions of yen)
Reportable Segments
Cardiac and
VascularCompany

Impairment Loss

876

General HospitalCompany

Blood
Management
Company－

SubtotalCompany
876

－

Total

134

1,010

(2) Fiscal year ended March 31, 2017
Not applicable.

[Goodwill](1) Fiscal year ended March 31, 2016

(Millions of yen)
Reportable Segments
Cardiac and
VascularCompany

Goodwill

14,997

General HospitalCompany

Blood
Management
Company－

128,710

SubtotalCompany

143,707(2) Fiscal year ended March 31, 2017

Total
－

143,707(Millions of yen)
Reportable Segments
Cardiac and
VascularCompany

Goodwill

97,799General HospitalCompany

Blood
Management
Company－

119,534

10

Subtotal
217,334

Company

Total－

217,334