Third Quarter Financial Results for the Fiscal Year Ending March 31. 2010:
Reference
Qualitative information – Financial Statements
The global economy during the consolidated accounting period of the third quarter revealed
very uncertain conditions which continued in medium and long-term economic trends as apossible second dip has been pointed out, though a certain level of effects can be seen, thanks
to the financial measures taken by individual governments. In Japan the appreciation of theyen reinforced deflation trends, causing concerns about an economic recovery.
In the healthcare market, harsh conditions persist as a large equipment demand continues tobe weak, but some emerging countries including China have displayed expanding markets,
thanks to the proactive investment, while in the U.S., uncertainty persists as the medical
reform bills to eliminate non-insured citizens that are under consideration in congress, have
led to a division in the public opinion. In addition, Japan, Europe, and developing countries
have actively reviewed and discussed radical measures such as system reforms in the view of
medical finance that becomes more and more challenging, and we are seeing changes inmedical structures on an unprecedented scale.
Terumo globally deploys products and services that contribute to the “healthcare economy”
that improves the quality of healthcare and promote its efficiency. In this accounting period,
we continued to make positive investments for the next stage of growth and promoted
initiatives to expand business in China and other emerging countries. We further promoted
the efficiency of management, and worked to improve the management strength.
Our performance in the total period of consolidation for this third quarter is as follows:
1. Net Sales
Consolidated net sales enjoyed a 7.2% increase in Japan and a 10.6% increase outside ofJapan on a local currency basis. In total, we were able to overcome the impact of yen
appreciation, and the consolidated net sales was 238.9 billion yen or a 3.2% increase whencompared with the same period in the previous year.

-1-[Terumo Corporation] Third Quarter Financial Results for the Fiscal Year Ending March 31, 2010: Reference

Geographic segments(Unit: millions of yen)
Area

Nine months ended

Nine months ended

Changes %Changes%December 31, 2008

December 31, 2009

(Local currency basis)Japan

124,158

133,134

7.2%

7.2%

Europe42,86441,365(3.5%)

10.4%

Americas42,127

42,104(0.1%)

9.9%

Asia and others

22,37522,294(0.4%)

12.5%

Total of Outside of Japan

107,367

105,763(1.5%)

10.6%

Total

231,526

238,897

3.2%

8.8%

In Japan, prefilled syringes (drugs prefilled in syringes) drastically increased sales,
following the last second quarter. Also, intravascular ultrasound imaging catheters used forAngina Pectoris, and PTCA balloon catheters enjoyed favorable sales, expanding the sales ofinterventional products in general. Digital thermometers sold well, too, and total sales ofconsumer healthcare products greatly increased.
Outside of Japan, we had double-digit sales increase in all regions, namely, Europe, theAmericas, Asia and others, on a local currency basis. Though customers still postpone
purchasing decisions of large equipment for heart operations, sales expanded throughout all
regions in a good balance, mainly driven by interventional products.
Business segments(Unit: millions of yen)
Business Segment

Nine months endedNine months ended

Changes %Changes%

December 31, 2008

December 31, 2009

General Hospital Products

113,048

114,669

1.4%

4.0%

Cardiac & Vascular Products

96,246

101,164

5.1%

14.2%

Blood Transfusion Products

18,215

17,921(1.6%)

5.6%

Consumer Health Care Products

4,015

5,142

28.1%

30.0%

231,526

238,897

3.2%

8.8%

Total(Local currency basis)

For Cardiac & Vascular products, interventional products served as the driving force forsales, and we saw double-digit growth in Japan, allowing us to compensate for the impact of
the appreciation of the yen outside of Japan to secure a sales increase. Consumer healthcare
products also saw a drastic increase in sales, thanks to a continued high level of sales ofdigital thermometers.
-2-

[Terumo Corporation] Third Quarter Financial Results for the Fiscal Year Ending March 31, 2010: Reference

Looking at General Hospital products, sales of prefilled syringes, I.V. solutions, and otherpharmaceutical products were good. Though affected by the appreciation of the yen, total
sales showed a slight increase when compared with the same period in the previous year.
Sales of Blood Transfusion systems depend much on overseas countries, and though we saw
a slight recovery trend, sales showed a downturn.
2. Gross Profit and Operating Income
The gross profit was 126.1 billion yen, or 2.1 % increase when compared with the same
period in the previous year. In addition to mixture effects thanks to sales increases of highly
profitable products, a shift of production to Asia, including Vietnam factory and cost
reductions by improved production efficiency contributed to gross profits. However, the total
gross profit rate was lowered by 0.5 points when compared with the same period in theprevious year, resulting as 52.8%, due to the effect of the appreciation of yen, pension costand international production increase, and the expenditure increase such as the depreciation
with the completion of the new building at Ashitaka Factory.
As we positively invested in R&D, SG&A expenses exceeded those of the same period offiscal 2008, but as we made all-out efforts to efficiently manage general SG&A expenses, therate improved by 1.7 points, to 31.9%.
Consequently, operating income was 50 billion yen by 9.8% increase when compared withthe same period in the previous year, while the operating income rate, resulting in 20.9% or
1.2 point increase.
3. Ordinary Income
Due to the relative decreased in non-operating exchange rate losses, when compared withthe same period of last year, the ordinary income increased by 17.9% resulting as 50.4 billionyen.
4. Net Income
The net income increased by 10.8% resulting as 31.9 billion yen.
5. Forecast
In terms of the forecast for this fiscal year, we have decided to leave the matters as before.
(Unit: millions of yen)
Net Sales
FYE/March 2010 Forecast

Operating Income

315,000

63,000-3-

Ordinary Income

61,000Net Income

40,000