[Terumo Corporation] Financial Results for the First Quarter of Fiscal Year Ending March 31, 2015: Reference

Financial Results for the First Quarter of the Fiscal Year Ended March 31, 2015: Reference

Analysis of Business Performance
1. Overview of Financial Results for the First Quarter of the Fiscal Year Ended March 31, 2015
(1) Overview of Consolidated Business Results
In the first quarter of the current fiscal year (from April 1 to June 30, 2014), reimbursement price cut occurred andconsumption taxes were hiked in Japan. In addition, while ”Japan Revitalization Strategy” positions healthcare as
one of the important industries, “Act to Advance Health and Medical Strategy,” “Act on Japan Medical Researchand Development Machinery,” etc. were enacted and laws were prepared one after another. In June, revised 2014
“Japan Revitalization Strategy” was decided by the cabinet office and measures for deregulation including Special
or Specified Medical Coverage System (so-called “treatment partially covered by insurance”) were taken. It is
expected that these measures will have influence on the market. Under such circumstances, the Terumo group ispresently carrying out our mid-term management plan with the goal of “becoming a company with a globalpresence.” Major achievements of each business segment were as follows:●In the Cardiac & Vascular Company, Terumo expanded businesses of PTCA dilation catheter (Hiryu Plus) andneurovascular products in Japan. Outside Japan, mainly in North America, sales of products related to transradial
coronary intervention (TRI), an interventional treatment for approaching the coronary artery from the blood vessels
in the wrist, were steadily expanded. In June, Terumo launched the new drug eluting stent (Ultimaster) in Europe.
●In the General Hospital Company, while needs for medical safety, Terumo expanded the lineup of “Chemoshield”
system, a closed infusion system for chemotherapy drugs to be used for measures to prevent exposure to drugs
including anticancer drugs. Regarding production, Terumo promoted manufacturing transfer to overseas to improve
profitability.
●In the Blood Management Company, while market conditions continued to be difficult, therapeutic apheresis sales
were expanded. In addition, demand for blood transfusion was high in emerging countries in Central and SouthAmerica, and Asia. This helped Terumo to continue to record robust sales of whole blood collection related
products and blood component collection system products.

In line with company-led management, “Cardiac & Vascular Business,” ”General Hospital Business” and “BloodManagement Business” changed their names to “Cardiac & Vascular Company,” ”General Hospital Company” and“Blood Management Company”, respectively, from the first quarter of the fiscal year ended March 31, 2015. In
addition, this change in the said segment name does not influence segment information.

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[Terumo Corporation] Financial Results for the First Quarter of Fiscal Year Ending March 31, 2015: Reference

Financial results for the first quarter of the fiscal year ended March 31, 2015 are as follows:

Net Sales
Compared with the same period of the previous fiscal year, net sales increased 3.5% to 114.9 billion yen.

In Japan, net sales decreased 5.0% to 43.4 billion yen year on year due to the impact of reimbursement price cut in
the Cardiac & Vascular Company and General Hospital Company. Outside Japan, on the other hand, net sales
increased 9.4% to 71.5 billion yen thanks to the growth of Blood Management Company in emerging countries andweak yen in addition to continued robust sales of interventional systems mainly in North America.

Gross profit
Gross profits totaled 60.7 billion yen, an increase of 6.5% year on year thanks to robust sales of highly
valued-added products both in Japan and outside Japan and improvement in productivity despite of the impact of
reimbursement price cut in Japan.

Operating Income
Despite increase in SG&A expenses, operating income jumped 20.9% year on year to 16.1 billion yen thanks toexpansion in sales of highly profitable products and increase in gross profit on the back of improvement inproductivity.

Ordinary Income
Ordinary income totaled 14.4 billion yen, up 11.7% year on year on the back of increase in operating income.

Quarterly Net Income
Quarterly net income decreased 6.3% year on year to 8.4 billion yen.

Net sales results by Company are as follows:
Please note that the adjustments in the period of the first quarter consolidated sales results of the previous fiscal
year are the sales related to home oxygen system and home infusion pump business sold off in the fiscal year ended
March 31, 2013 and next generation implantable left ventricular assist system entered in strategic alliance in thefiscal year ended March 31, 2014.

Cardiac & Vascular CompanyIn Japan, Terumo enjoyed good sales of new products of neurovascular intervention business which the company
began to sell in the previous fiscal year but sales decreased due to the impact of reimbursement price cut. Outside
Japan, interventional systems sales were robust mainly in Europe and the USA and neurovascular intervention
business expanded largely in each region. As a result, sales of Cardiac & Vascular Company increased 8.8% year
on year to 54.5 billion yen.
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General Hospital CompanyIn Japan, sales decreased 5.8% year on year due to reimbursement price cut and recoil reduction in demand inblood glucose monitoring systems, etc. following consumption tax increase. Outside Japan, on the other hand,
Terumo expanded sales mainly for General Hospital Products in Europe and Asia, contributing to increase in sales.
As a result, sales of General Hospital Company decreased 3.7% year on year to 38.0 billion yen.

Blood Management Company
In Japan, sales decreased due to temporary demand adjustment accompanied by IT system change of a customer.
Outside Japan, sales were robust in therapeutic apheresis in Europe and the USA and in each product group inemerging countries. As a result, sales of Blood Management Company increased 4.1% year on year to 22.4 billion
yen.

(2)Overview of Consolidated Balance Sheets
Assets
As of June 30, 2014, the total assets amounted to 812.7 billion yen, down 20.2 billion yen compared to March 31,
2014. Of this amount, current assets decreased 15.1 billion yen to 295.9 billion yen, primarily due to decrease in
cash and deposit and the influence of the fluctuation of exchange rates. Noncurrent assets decreased 5.5 billion yen
to 514.9 billion yen. The tangible fixed assets increased 2.1 billion yen, the intangible fixed assets decreased 8.9billion yen and investment and any other assets were up 1.3 billion yen.

Total Liabilities
Total liabilities decreased 20.6 billion yen to 315.9 billion yen. Of this amount, the current liabilities amounted to139.5 billion yen, decrease of 21.5 billion yen due to decrease, etc. in the payment of unpaid corporate taxes, etc.
Noncurrent liabilities totaled 176.5 billion yen, up 0.8 billion yen, primarily due to increase, etc. in long-term debt.

Net assets
Net assets totaled 496.7 billion yen, an increase of 0.5 billion yen.
Consequently, the share holders’ equity ratio was 61.1%, up 1.5 percentage points compared to March 31, 2014.

(2) Forecast of Consolidated Financial Results for the Fiscal Year Ended March, 2015
Terumo’s operating environment continues to be uncertain due to changing conditions surrounding the medical
device market and other factors. However, the company made no revisions to its consolidated financial forecasts forthe current fiscal year. Amidst challenging business conditions, the Terumo Group is working to achieve its targets
by launching high-value-added products that improve medical cost efficiency, as well as implementing measures toreduce manufacturing costs, and strictly and efficiently managing SG&A expenses.
This English translation has been prepared for general reference purposes. The Company is not responsible for any-3-

[Terumo Corporation] Financial Results for the First Quarter of Fiscal Year Ending March 31, 2015: Reference

consequence resulting from the use of the English translation in place of the original Japanese text. In any legal
matter, readers should refer to and rely upon the original Japanese text of the tanshin (Financial Results) dated as ofAugust 6, 2014.

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