Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2011

January 27, 2011
TERUMO Corporation

Agenda-Financial Results-Financial Results-Net Sales (By Region)-Net Sales (By Business Segment)-Points on Net Sales-Gross Profit Rate Variance Analysis-SG&A Expenses-Forecast & Progress for the Full-Year Results of FYE Mar. 2011

-The Third Quarter Topics
1. Intravascular Imaging Business
2. TRI in U.S.
3. Chronic Care Market – Semi-Solid Nutritious Food

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Financial Results (Consolidated)(Unit: Billions of yen)

Q3 YTD

Q3 YTDMar.2010

Mar.2011

YoY

Constant
Currency

Net Sales

238.9

244.2

2%

7%

Gross Profit

126.1 (52.8%)

127.2 (52.1%)

1%

7%

SG&A Expenses

76.1(31.9%)

79.1 (32.4%)

4%

8%Operating Income

50.0(20.9%)

48.1 (19.7%)

-4%

4%

Ordinary Income

50.4(21.1%)

42.9 (17.6%)-15%

Net Income

31.9(13.3%)

27.5 (11.3%)-14%

Average Exchange Rate

US$ 94yen
EUR 133yen

87yen
113yen2011/1/27

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Net Sales (by Region)(Unit: Billions of yen)

Consolidated ：+2% (+7%)

Q3 YTD Q3 YTD
Mar. 2010 Mar. 2011( ): Constant currency

JapanOverseas+1%+4%(+15%)

42.0-2%(+14%)

41.1

+6%
Americas (+14%)

39.8
42.0

Europe133.1 133.9
105.8 110.3

China+23% 5.7(+33%) 7.0

Asia &Others+11%(+15%)

18.2
20.2

Ratio of Overseas Net Sales 44% Æ 45%
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Net Sales (by Business Segment)(Unit: Billions of yen)

+1%(+3%)+5%(+14%)

Q3 YTD Q3 YTD
Mar. 2010 Mar. 2011( ): Constant currency+3%(+9%)114.5 115.7

101.3 106.8-35%(-34%)

17.9 18.4

GeneralHospital

Cardiac &Vascular

5.1 3.3
ConsumerHealthcare

BloodTransfusion
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Points on Net Sales-Overseas%:YoY-Interventional systems achieved double-digit growth in all regions (constantcurrency basis).
Europe 23%, Americas 22%, China 42%, Asia & others 32% growth.
-Drug eluting stent ”Nobori” 122% growth-TRI related products* in U.S. tripled*Mainly used for the procedure which approach from the radial artery: Introducer sheath, TR-bands etc.

-Japan-Interventional systems increased by 2 % despite the drug & reimbursement
price decline.
-IVUS ( Intravascular Ultrasound) imaging systems was strong, increased by 47%-Focused on the chronic care market, semi-solid nutritious food increased by29%.

-Consumer Healthcare Business remains the backlash from the emergency
demand caused by last fiscal year’s pandemic H1N1 flu.
-Due to the launch of new products, the rate of quarterly decline compared with the previousyear showed a narrowing trend.
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Gross Profit Rate Variance Analysis
55%

54%

0.7

53%

0.4
Volume0.3
Costincrease
reduction

Reimbursement price decline

0.9
1.2
Pricedecline

Shift to higher
profitable products

52%

0.6
Foreignexchange

0.3
Others

52.8%
52.1%

51%

50%
Average exchange rate

Q3 YTDMar.2010

US$:
EUR:

Q3YTD
Mar. 2010
94yen
133yenQ3YTDMar. 2011
87yen
113yen2011/1/27

Q3 YTDMar.2011
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SG&A Expenses(Unit: Billions of yen)

Q3 YTD Mar. 2010 Q3 YTD Mar. 2011

Changes

YoY

Salaries & Wages

28.5

28.8

+0.3

+1%

Sales Promotion

8.0

7.7

-0.3

-4%

Logistical Costs

6.7

7.2+0.5

+7%

3.8

3.4

-0.4

-10%

16.5

17.5

+1.0+7%

GeneralAdministrative Total

63.5 (26.6%)

64.6 (26.5%)+1.1+2%

R&D Expenses

12.6

14.5(5.9%)+1.9+14%79.1 (32.4%)+3.0+4%

Depreciation &Amortization
Others

(5.3%)

4

SG&A TOTAL

76.1 (31.9%)( ):%/Net Sales
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Forecast and Progress for the Full-Year of Results FYE Mar. 2011
-Forecast for this fiscal year is on hold.
(Unit: Billions of yen)Mar.2011
Full-Year
Forecast

Q3 YTD
Results／Progress

Changes

Net Sales

326.0

244.2

75%

81.8

Operating Income

63.3 (19.4%)

48.1

76%

15.2

Ordinary Income

57.2 (17.5%)

42.9

75%

14.3

Net Income

36.3 (11.1%)

27.5

76%

8.8

US$85yen

87yen

EUR 113yen

113yen2011/1/27

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Average Exchange Rate

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The Third Quarter Topics

1. Intravascular Imaging Business
2. TRI in U.S.
3. Chronic Care Market– Semi-Solid Nutritious Food

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1.Intravascular imaging business

Promoting Safe & Efficient Interventional Treatment-Monitoring the cross-section of the blood vessel-Selecting a stent, checking the fitting ability-Categorizing with the types of signals-Ultrasound……IVUS-Possible to look deep into the blood vessel wall,
but poor image resolution
IVUS image-Optical……OFDI/OCT•High image resolution,
but the shallow spectrum of blood vessel wallvisibility.

OFDI image

Console monitor

Imaging catheter

IVUS: Intravascular Ultrasound, OFDI: Optical Frequency Domain Imaging, OCT: Optical Coherence Tomography
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1. Intravascular imaging business

IVUS in Japan：Continuous Improvement Enhances the Market Evaluation-Vivid imaging display and analysis made possible-Improvement of deliverability and procedure efficiency of IVUScatheters(Billions of yen)

5.040%Forecast of IVUS sales in Japan
Terumo share

20%

2.5

0.00%
FYE Mar. 2010
(Results)

Mar. 2011

Mar. 2012*Estimated by Terumo

Aiming 36% share within Japan for the FYE in Mar 2012,
with sales 5 billion yen
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2．Promising Spread of TRI in U.S.
-TRI procedure increasing from 3% to 8% out of PCI.
Holding symposiums inacademic meetings

Net sales of TRI related(US$Mil.)products in the U.S.

15CA10G3%
6R50
1st Half
Mar. 2010

2H
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3．Chronic care market

Tube Feeding Scene
The process follows the tube feeding (bottle and tube used)

PrepareWash /Sterilize

Infuse-Challenges of liquid nutritious food for tube feeding-Aspiration pneumonia by back flow of liquid food from the stomach
and the gullet-Elderly and bedridden people have higher risk

-Increasing patients, much time and effort must be spenton the feeding process.

Into lungs
By back flow, into the trachea-Patients are shifting from the acute care facility to the chronic care facility.
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3．Chronic care marketElderly Healthcare Originated from Japan, Semi-Solid Nutritious Food-Characteristics of Terumo’s Products-Semi-solid to prevent backflow
ÆReduces the risk of aspiration pneumonia-No container nor equipment required, washingnor sterilization necessaryÆReduces operation time drastically(Billions of yen)

6

Forecast of semi-solid nutritious food sales

20%

Terumo share

415%

2010%
Mar. 2010(results)

Mar. 2012

Mar. 2014

Aiming 6 billion yen sales for the FYE Mar. 2014
*Sales: excluding the delivery Share: share of semi-solid nutritious food within the semi-solid andtube feeding liquid foods market, estimated by Terumo
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ReferenceFinancial Results (three months)(Unit: Billions of yen)

Q3

Q3

Mar. 2010

Mar. 2011

Net Sales

80.8

80.3

-1 %

Gross Profit

42.8(52.9%)

41.6 (51.7%)-3 %SG&A Expenses

25.4(31.3%)

26.2 (32.5%)

3%

Operating Income

17.4(21.6%)

15.4 (19.2%)-12 %Ordinary Income

18.1(22.4%)

14.7 (18.3%)-19 %Net Income

11.1(13.7%)

9.1 (11.4%)-18 %Average Exchange Rate

US$ 90yen
EUR 133yen

83yen
112yenYoY

Net Sales
5% impacted2011/1/27

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Income for the Q3 FYE Mar. 2011:
To the Forecast for the 2nd Half
(Unit: Billions of yen)

2HForecastQ3(Three months)

162.1

80.3

50%

Operating Income 30.6 (18.9%)

15.4(19.2%)

50%

29.0 (17.9%)

14.7(18.3%)

51%

17.9 (11.0%)

9.1(11.4%)

51%

Net Sales

Ordinary Income
Net Income
Foreign Exchange
Rates
US$EUR

Impact ofProgress
Rates Foreign Exchange+0.6(Upper the progress
rate by 0.4%)+0.2(Upper the progress
rate by 0.6%)

Forecast80yen

83yen

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Gross Profit, SG&A, Operating Income Rates(%)

Gross Profit
52.9

52.2

52.1

52.3

32.5

32.0

19.6

20.3

51.7

SG&A
35.0
31.3

Operating
Income

21.6
17.2
Q3
Mar. 2010

Q4

32.5

19.2

Q1
Q2
Q3
Mar. 2011(Unit: Quarterly three months)
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Changes of Quarterly Average Exchange Rates
Yen
140

120

EUR (Mar. 2010)

EUR (Mar. 2011)117
US$ (Mar. 2010)

111

112

100
92
80

US$ (Mar. 2011)

Q1

86
Q2

83
Q3

Q4

(Average exchange rates for the quarterly three months)
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IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp

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 notlimited to, changes in economic conditions surrounding Terumo, fluctuations of foreignexchange rates, and state of competition.
The market share information in this presentation is partly derived from our own
independent research.

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