Japanese yen has been further depreciated. The average exchange rate during Q1 was 99 yen for US
dollar and 129 yen for Euro. With the tailwind of depreciated yen, the net sales was 111.1 billion yen,
up by 16% year on year. The positive impact of foreign exchange was amounted to 12.5 billion yen.
As for gross profit, compared to the one in Q1 of fiscal 2012, which Terumo largely benefited fromincrease in production volume, gross profit margin dropped by 2.6 percentage point. Regarding SG&A
expenses, general administrative expenses and R&D expenses increased at 19% and 27%
respectively. And, the total SG&A expenses increased at 21% year on year. As a result, operating
income totaled 13.3 billion yen, down by 14% year on year.
While absorbing the interest costs, ordinary income was affected favorably by the depreciation ofyen. As a result, it was almost same level as Q1 of FY12 and amounted to 12.9 billion yen. Net income
increased 10% to 9.0 billion yen due to corporate tax drop.
The overall Q1 results were almost in line with the 1H forecast.

2The figures in parenthesis shows the growth rate excluding foreign exchange and the impact fromsales of home therapy business.
Owing to steady growth of Cardiac & Vascular and Blood Management business, sales in Japan
increased 2% year on year. With a favorable impact of depreciated yen, sales outside of Japan
increased 30% year on year. If excluding the impact of FX, sales outside Japan increased 5%.
Excluding the impact of FX, the growth in Europe and China were lower than previous trend. This wasdue to temporary factors, which I will explain at a later point.

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Cardiac & Vascular and Blood Management business, which have high overseas sales ratio, marked
high growth owing to the favorable FX impact. We will explain the details of each businessperformance by region in the next slide.

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This shows net sales by segment and region. The figures in parenthesis shows the growth rate
excluding foreign exchange and the impact from sales of home therapy business.
With General Hospital, sales in Japan remained solid for commissioned business in Drug & Device,and Diabetic Management business. Outside Japan, sales marked low growth due to continuous
reduction of low profit businesses. Meanwhile, we have launched Smart Pump outside Japan andexpect it to start driving growth over time.
Regarding Cardiac & Vascular, in Japan, while DES Nobori sales declined year on year, peripheral
stent, Misago, marked strong growth. Sales outside Japan grew by 5% year on year. Looking into
Interventional Systems business out of C&V, its sales increased 8% year on year, indicating lower
growth rate than previous trend. This was due to several temporary factors which occurred in
Q1/FY13. First of all, in Europe, a new IT system introduction caused a delay of products shipment tocustomers. Thus, sales of some products were shifted to Q2. In U.S., we switched the sales of urology
guide wires from thru-distributor to direct in April. That caused inventory adjustment at customer
side. In China, sales of neurovascular intervention products declined due to an inventory adjustment
by local distributor. These temporary factors are already back on recovery track. Excluding the impactof these temporary factors, Interventional Systems sales outside Japan increased 11% year on yearand remained in double digit growth.
With Blood Management business, sales in Japan grew significantly due to strong sales of automatedblood component collection system and customer’s inventory adjustment occurred in Q1/FY12.
Therapeutic apheresis system continuously drove the sales outside Japan.

5Due to the impact of depreciated yen, general administrative expense ratio against sales was 32.4%,
up by 0.9 percent points. R&D expenses, mainly for interventional systems and blood management
products, increased 27% to 7.6 billion yen. R&D expenses were well proceeded according to annual
forecast of 30 billion yen.

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This slide shows changes in SG&A expenses, excluding the impact of FX.
The impact of FX on general administrative expenses was 4.5 billion yen. Excluding FX impact, it
increased by 1.4 billion yen and 5% year on year. Salaries & Wages increased by 0.7 billion yen and
5% year on year due to enhancement of sales force mainly for Interventional Systems in Americas
markets. Sales Promotion increased by 0.4 billion yen and 14% year on year mainly owing to businessexpansion in overall Interventional Systems in Japan, and neurovascular & endovascular intervention
business in U.S. In terms of R&D expenses, we used it up for product development as well as clinical
trials mainly of Blood Management and neurovascular intervention products, turning out as planned.

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This slide shows operating income variance analysis.
The impact of foreign exchange was amounted to 3.0 billion yen. While we benefited from grossprofit increment by sales increase, greater burden on plant productivity born by new products launch
and the deprecation of newly installed facilities had a negative impact. Price erosion and device tax inUS negatively affected as well. Additionally, the inventory re-evaluation, which brought an incrementon operating income in Q1/FY12, generated negative difference in Q1/FY13. Due to these factors,operating income declined by 2.2 billion yen, to 13.3 billion yen. The negative impact of loweredplant productivity and inventory re-evaluation will be reduced over time.

8This slide shows how operating income achieves its 1H goal, 30 billion yen.
Operating income was more or less in line with its forecast. Based on this, it plans to be incremented
by 3.4 billion yen in Q2/FY13. That will be achieved by sales expansion of new products includingones for neurovascular and endovascular intervention, smart pump, and automated blood
component processing system. Moreover, cost for quality system improvement in TCVS and R&D
expense for DuraHeart II will be reduced. Through steadily implementing these, we expect to achieve
operating income of 30 billion yen in 1H.

9This slide shows progress within product development pipeline in the new mid-term plan.
The ones shown here are new products which we plan to launch during current fiscal year. Within
Cardiac & Vascular business, in Q1 we launched a peripheral stent, a flow-diverting stent andocclusion balloon for neurovascular intervention, OFDI intravascular imaging system for coronary
intervention, and renal sympathetic denervation system. In Q2, we will launch new PTCA balloon in
Japan and a slenderized introducer sheath for TRI in U.S.

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Within Blood Management business, in Q1 we launched automated blood component processing
system in Europe. Within General Hospital business, we launched safety IV catheter in U.S. and Asia.
Although these are not shown on the pipeline of new mid-term plan, within Cardiac & Vascularbusiness, we launched microcatheter and aspiration catheter in Europe, and bare metal stent andIVUS imaging catheter for difficult lesions in Japan. Within General Hospital business, we also
launched needle for pen injector in Europe.
We will make sure new and improved products launch on time, and additionally expand businessscope in region and country perspective, aiming to achieve the annual forecast and the mid-termplan.
Thank you very much for your attention.

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