Financial Results for the First Quarter ofFiscal Year Ending March 31, 2016 (FY2015)
Terumo Corporation
Senior Executive Officer,
Investor Relations, Corporate Communication Dept.
Kazuaki Kitabatake
August 4, 2015

Overview: Double Digit Growth Both in Sales and Profit
Net Sales
Gross Profit
SG&A Expenses
R&D Expenses

Operating Income(Excl. Amortization)

Ordinary Income
Net Income
Average Exchange Rate

FY14 Q1

FY15 Q1

YoY%

114.9
60.7 (52.8%)
37.9 (33.0%)
6.7 ( 5.8%)
16.1 (14.0%)
20.2 (17.6%)
14.4 (12.6%)
8.4 ( 7.3%)

128.7
69.0 (53.7%)
41.7 (32.5%)
7.9 ( 6.1%)
19.4 (15.1%)
24.5 (19.1%)
20.6 (16.0%)
14.5 (11.3%)

+12%
+14%
+10%+18%+21%+21%+43%+73%

US$EUR

102 yen
140 yen(billion yen)
YoY%(Excl. FX)+5%+7%+2%
+10%
+18%
+15%

121 yen
134 yenSales: solid start for all companies. Overseas IS and neurovascular drove the corporate to double digit growth
Operating income: the gross profit growth driven by sales expansion exceed the expense growthOrdinary income: posted a FX gain of 1.8 BJPY in FY15 Q1, while posted a loss of 0.8 BJPY in FY14 Q1
Net income: decrease in extraordinary loss. Lowered corporate tax burden ratio due to tax system revision andprior period tax adjustment© Terumo Corporation

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Extraordinary Gains & Losses, Income Taxes(billion yen)

Ordinary Income

FY2014
Q1FY2015
Q1

14.4

20.6

YoY%: +43%
FY2014
Loss on disposal offixed asset
Impairment loss

Extraordinary
Gains & Losses-0.7+0.04

Income before Income Tax

13.820.6

YoY%: +50%

Income Taxes Total
Tax Rate (%)

-5.4
39%

-6.130%Tax system revision
Prior period tax adjustment

Net Income

8.4

14.5

YoY%: +73%

© Terumo Corporation

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-0.3
-0.4

-0.6
-1.1

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Operating Income Variance Analysis
1.4

0.4

16.1

FX

0.7

(billion yen)

Increase
0.8
of R&D
G/P
0.8
SG&A
improve- for Inter2.1
Product ment by ventional Increase
Systems due to sales
cost
mix
force
Improve- reduction,
4.3
expansion
etc
ment
Price
in US Intererosion
ventional
G/P
Systemsincrement
and Neuroby sales
vascularincrease
divisions

FY2014 Q1

19.4

FY2015 Q1© Terumo Corporation

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Net Sales by Region
FY15 Q1
FY14 Q1( ) Excluding FX

Outsideof Japan(billion yen)

84.7
+18% (+8%)

34%Consolidated-1% (+2%)

44.0+1%66%

35.9

Americas28.4+26% (+7%)

12% (+5%)

Japan

25.9
26.0

EuropeChina+73% (+45%)

Asia & Others+17% (+6%)

9.0
5.2
14.0
11.9

 Japan: General Hospital drove increase in overall sales.
 Europe: pursue portfolio restructuring. Effect of appreciation of yen against Euro for all businesses
 Americas: increase in sales for IS and Neurovascular businesses. Also driven by FX China: driven by completion of realignment of local distribution network© Terumo Corporation

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Net Sales by Business Segment
FY15 Q1
FY14 Q1(billion yen)

BloodManagement
20%Cardiac &Vascular
49%

63.2

Cardiac & Vascular

53.5+18% (+9%)
39.5

General Hospital

38.0+4% (+2%)

GeneralHospital
31%( ) Excluding FX

Blood Management+11% (+3%)

26.0
23.5

 Achieve increase in sales for all companies, even without FX support
 Cardiac & Vascular and Blood Management businesses achieve double digit growth due tostrong overseas sales.

© Terumo Corporation2015/8/4

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Cardiac & Vascular: Double-digit Growth in Sales and Profit(Billion yen)

Sales
Business Profit (%)

FY14 Q1

FY15 Q1

YoY%

YoY%(Excl. FX)

53.5
11.4 (21%)

63.2
14.1 (22%)

+18%
+24%

+9%
+22%

<Sales> Increase in sales for overseas IS and Neurovascular businesses+ 7.2 BJPY In China, complete local distributors realignment and expand customer coverage+ 2.2 BJPY Sales of Ultimaster (new DES) continued to expand strongly mainly in EU<Business Profit> Increase in profit and improve portfolio mix driven by sales expansion of overseas IS andNeurovascular businesses© Terumo Corporation

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General Hospital: Profitability in Recovery Trend(Billion yen)

Sales
Business Profit (%)

FY14 Q1

FY15 Q1

YoY%

YoY%(Excl. FX)

38.0

39.5

+4%+2%

4.6 (12%)5.6 (14%)

+23%

+25%

<Sales> Japan: changes in the healthcare market environment shows a trend of returning+ 1.3 BJPY

 Progress in portfolio restructuring in EU and Americas- 0.7 BJPY<Business Profit> Improve portfolio mix by expansion of highly profitable businesses (D&D and DM)© Terumo Corporation

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in Emerging Countries andBlood Management: Businesses
Therapeutic Apheresis Continuously Drives Growth(Billion yen)

Sales
Business Profit (%)

FY14 Q1

FY15 Q1

YoY%

YoY%(Excl. FX)

23.5
4.2 (18%)26.0
5.4 (21%)

+11%
+28%

+3%
+35%

<Sales> Continue to grow therapeutic apheresis and cell expansion systems+ 1.4 BJPY Increase sales for blood component collection mainly in developing countries+ 0.9 BJPY<Business Profit> In Q1, certain anticipated price declines in the U.S. had not taken hold yet with some blood centergroups. The price declines will increase in Q2 and beyond.
 Profit from the products, which are manufactured in US and sold in EU, are negatively affected byweaker EUR against US$.
© Terumo Corporation

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Topics
 Transitions to a company with an audit/supervisory committee to enhance corporate

Corporate

governance Introduces 6 CXO positions to strengthen global management infrastructure
 U.S. FDA grants PMA (Premarket approval) to peripheral stent, “Misago”,Cardiac &Vascular

as the first PMA-approved product developed by Japanese company
 CE mark clearance for bioresorbable scaffold developed by Arterial RemodelingTechnologies (ART) Files an application to Japanese MOH for the manufacture and sales approval ofGeneral
Hospital

intradermal injection device (flu vaccine) Production for new IV solution bag, which is environmentally thoughtful andexpected to contribute to cost reduction, starts in Japan U.S. FDA clears bone marrow processing protocol on apheresis system

Blood
Management  Finishes and opens a new global headquarters building in Colorado, U.S.
© Terumo Corporation

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New Product Pipeline for FY2015BusinessProductNew DES(Ultimaster)

Region Launch◎◎★

JPCVCoronary

Stent (above the knee)★

Stent for small vessel(Misago)

Disposable centrifugal pump(for PCPS)

JPJP

Done

EU, US

PTA balloon(below the knee)

JP★

EUDoneCoil assist stent◎

JPDoneLiquid embolic glue★

EUDone★

Launched in US market

Liquid embolic glue (PHIL)
Ready-to-use prefilled syringe type

Coil assist stent (LVIS Jr.)

Embolic particles (LifePearl)

World smallest profile
in delivery system

Drug-eluting beads, launched in EU

Peripheral Stent (Misago)

Embolic particles(beads)Distal protection device

Region LaunchEU

Peripheral PTA balloon(above the knee)

NeuroUS

ProductBlood
Automated blood component★
Management processing system

EU, Latin
A, Asia

New aspiration catheter

BusinessEU◎ Item with large contribution to sales and profit★ Item with highly innovative technology© Terumo Corporation

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Reference© Terumo Corporation

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FY15 Q1 Net Sales and Growth by Region(Billion yen)
Outside of Japan
Europe Americas China

BusinessSegment

JapanCardiac &Vascular

11.3 (-4%) 51.9 (+12%) 16.9 (+5%) 21.9(+12%) 7.1 (+42%) 6.0 (+13%) 63.2 (+9%)

Out of C&V
InterventionalSystems*

8.5 (-7%) 41.0 (+17%) 13.6 (+7%) 15.8(+19%) 6.7 (+45%) 4.9 (+20%) 49.5(+12%)

Subtotal

Asia

G. Total

GeneralHospital

30.2 (+4%) 9.3 (-6%)

BloodManagement

2.5 (-8%) 23.5 (+4%) 6.5 (+2%) 11.9 (+1%) 1.4 (+68%) 3.7 (+8%) 26.0 (+3%)

G. Total

44.0 (+1%) 84.7(+8%) 25.9 (+2%) 35.9 (+7%) 9.0 (+45%) 14.0 (+6%) 128.7 (+5%)*Including Neurovascular business

2.5 (-16%) 2.0 (-2%) 0.5 (+38%) 4.3 (-4%) 39.5 (+2%)(YoY%): Excluding foreign exchange© Terumo Corporation

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Operating Expenses(Billion yen)YoY%

FY14 Q1

FY15 Q1

YoY

YoY%

Salaries & Wages

16.9

19.1+2.2+13%

Sales Promotion

3.7

4.1+0.4+8%

Logistical Costs

2.7

2.8+0.1+3%

Depreciation &Amortization

5.9

6.9+1.0+17%

Others

8.7

8.8+0.1+3%

SG&A Expenses Total

37.9 (33.0%)

41.7 (32.5%)+3.8+10%+2%

R&D Expenses

6.7 ( 5.8%)

7.9 ( 6.1%)+1.2+18%+10%

Operating Expenses Total

44.6 (38.8%)

49.6 (38.6%)+5.0+11%+3%(Excl. FX)(%) Against net sales© Terumo Corporation

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Quarterly Results
FY14 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)(Billion yen)
Q4
FY15 Q1(Jan-Mar) (Apr-Jun)

Net Sales

114.9

118.4

129.9

126.3

128.7

Gross Profit

60.7 (52.8%)

62.3 (52.6%)

67.8 (52.2%)

65.4 (51.7%)

69.0 (53.7%)

SG&A Expenses

37.9 (33.0%)

38.5 (32.5%)

40.5 (31.2%)

42.4 (33.5%)

41.7 (32.5%)

R&D Expenses

6.7 ( 5.8%)

6.9 ( 5.8%)

7.4 ( 5.7%)

8.4 ( 6.7%)

7.9 ( 6.1%)

Operating Income

16.1 (14.0%)

16.9 (14.3%)

19.9 (15.3%)

14.6 (11.5%)

19.4 (15.1%)(Excl. Amortization)

20.2 (17.6%)

21.1 (17.8%)

24.5 (18.8%)

19.4 (15.3%)

24.5 (19.1%)

102 yen
140 yen104 yen138 yen

115 yen
143 yen

119 yen
134 yen

121 yen
134 yenAverage
Exchange Rate

US$EUR© Terumo Corporation

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CAPEX, R&D Expenses(Billion yen)
FY2015
Guidance

FY2015 Q1Result

Progress toGuidance

CAPEX

42.0

8.019%

Depreciation &Amortization *45.0

10.924%R&D Expenses

35.0

7.9

22%

Depreciation & Amortization: Including intangibles
CAPEX: Acquisition basis© Terumo Corporation

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Cash Flow
Corporate tax burden is greater in Q1(Billion yen)

Operating CF+4.7
10.9

20.6

Incomebeforetax

129.7*

Cash at endof FY2014

Depreciation &Amortization

Investing and Financing CF-9.4

19.0

Corporate tax
andothers(for 6 months)

7.8
Increasein working
capitalandothers

8.0
CAPEX

6.1

4.7

Dividend

Others*Cash at end of each period is consistent with “Cash and deposits” on B/S.
*Negotiable certificates of deposit is represented in “Securities” on B/S.
© Terumo Corporation

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125.0*Cash at endof FY15 Q1
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Foreign Exchange Sensitivity(Billion yen)
US$EURNet Sales

1.80.7

Operating Income

0.10.2

 For US$, sales expansion in U.S. drove higher FX sensitivity at sales. However,
the increase in overseas production ratio since acquisition of Caridian BCT
resulted in less impact of yen depreciation against US$ at operating income.
 FX impact on operating income in FY15 Q1: 19-yen depreciation against
US$ and 6-yen appreciation against EUR resulted in the net positive impact of0.4 BJPY.
© Terumo Corporation

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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, the forward-looking statements including financial
projections are based upon our assumptions using information available to us at the time andare not intended to be guarantees of future events or performance. 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 foreign exchange rates, and state of competition.
The market share information in this presentation is partly derived from our own independentresearch.

© Terumo Corporation

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