Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2014

Terumo Corporation
August 1, 2013

Consolidated Q1 Results(billion of yen)

Q1 Mar. 2013

Q1 Mar. 2014

YoY%

Net Sales

95.9

111.1

+16%

Gross Profit

51.7(53.9%)

57.0 (51.3%)+10%

SG&A Expenses
R&D Expenses

30.2(31.5%)

36.1 (32.4%)+19%

6.0( 6.3%)

7.6 ( 6.9%)+27%

Operating Income

15.5(16.1%)

13.3 (12.0%)-14%(Excl. Amortization *)18.8(19.6%)

17.3 (15.6%)- 8%

Ordinary Income

13.0(13.5%)

12.9 (11.6%)- 0%

Net Income8.2( 8.5%)

9.0 ( 8.1%)+10%

EBITDA

23.2(Operating Income + Depreciation)

Average Exchange Rate

22.7

US$ 80 yen
EUR 103 yen-2%99 yen
129 yen*Excl. amortization of goodwill and intangibles with related to the acquisition of CaridianBCT

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Net Sales (by Region)(billion of yen)

Consolidated: +17% (+4%) ＊Q1
Q1
Mar. 2013 Mar. 2014( ) Excluding Foreign Exchange＊ Excluding Home Therapy

Japan+2% ＊44.7＊ 45.7

Outside of Japan+30%(+5%)

50.4Europe+29%(+3%)

17.7
22.9Americas+29%(+5%)

20.5
26.5

4.2

China

+28%(+4%)

Asia &Others+35%(+9%)

8.0

65.4

2013/8/1

5.3

10.7

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Net Sales (by Business Segment)(billion of yen)

+5%(+1%)＊Q1
Q1Mar. 2013 Mar. 2014

+22%(+4%)( ) Excluding Foreign Exchange＊ Excluding Home Therapy+29%(+8%)37.4 ＊ 39.4

41.1

50.1

16.6

GeneralHospital

Cardiac &Vascular

21.5

Blood
Management
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Q1 Mar. 2014 Net Sales and Growth by Region(billion of yen)
BusinessSegment

JapanOutsideof Japan
TotalEuropeAmericas

China

Asia &Others

G. Total

GeneralHospital

30.7

8.7

2.7

2.1

0.3

3.7

39.4

(1%)

(2%)

(-7%)

( 4%)

(-23%)

(10%)

(1%)

Cardiac &Vascular

12.1

38.0

14.3

15.4

4.3

4.1

50.1

( 3%)

( 5%)

( 4%)

( 7%)

( 3%)

(-0%)

( 4%)

BloodManagement

2.9

18.6

5.9

9.0

0.8

2.9

21.5

(12%)

( 7%)

( 6%)

( 2%)

(18%)

(24%)

( 8%)

45.7

65.4

22.9

26.5

5.3

10.7

111.1

( 2%)

( 5%)

( 3%)

( 5%)

(4%)

( 9%)

( 4%)

G. Total

Within C&V, Interventional Systems out of Japan shows 8% growth.
Without temporary factors, it shows continuous double-digit growth at 11%
EU: a delayed product shipment due to new IT system introduction- 0.4 BJPYChina: inventory adjustment by local distributors for neurovascular products- 0.4 BJPY
US: inventory adjustment of urology guidewire due to business transition to direct - 0.1 BJPY
(YoY%): Excluding foreign exchange and home therapy business from previous FY
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SG&A Expenses(billion of yen)

Q1 Mar. 2013

Q1 Mar. 2014

YoY

YoY%

Salaries & Wages

12.7

15.4+2.7+22%

Sales Promotion

2.9

3.7+0.8+29%

Logistical Costs

2.5

2.7+0.2+8%

Depreciation & Amortization

4.4

5.3+0.9+22%

Others

7.7

9.0+1.3+14%

General Administrative Total

30.2(31.5%)

36.1(32.4%)+5.9+19%

R&D Expenses

6.0(6.3%)

7.6(6.9%)+1.6+27%

SG&A Expenses Total

36.2(37.8%)

43.7(39.3%)+7.5+21%(%) Against net sales
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SG&A Expenses (Excluding Foreign Exchange)(billion of yen)

Q1 Mar. 2013
Adjusted w/ current FX rate

Q1 Mar. 2014YoY

YoY%General
Administrative Total

34.736.1+1.4+ 5%

R&D Expenses

6.77.6+0.9+15%

SG&A Expenses Total

41.4

43.7+2.3+ 6%

Salaries & Wages:+5% (+0.7 BJPY)

Enhance sales force in U.S. and Latin America(Interventional Systems)

Sales Promotion :+14% (+0.4 BJPY)

Further expand Interventional Systems business in JP, andneurovascular & endovascular intervention business in US

R&D Expenses

Blood Management (therapeutic apheresis, automatedblood component processing) and Cardiac & Vascular(new products for neurovascular intervention):+15% (+0.9 BJPY)

Logistical Costs +1% (+0 BJPY), Depreciation & Amortization +2% (+0.1 BJPY), Others +3% (+0.2 BJPY)

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Operating Income Variance Analysis
1.93.0FX

15.5(billion of yen)

2.0

G/P
Lowered1.0
increment
plantby sales productivity Priceincreaseerosion

0.4
Devicetax in US

1.4
Effect oftemporaryfactors
occurred in
Q1/FY12

2.3

Increase(inventory re- in SG&A
evaluation,etc) expenses

13.3

Q1Mar. 2013

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Q1 Is in Line. Toward Operating Income of 30 BJPY in 1H(billion of yen)

OperatingIncome+3.4

16.7

13.3
Q1 Mar. 2014
ResultQ2 Mar.
1332014
Forecast

Factors to increase Q2 operating income
Increase due to sales expansion

2.1 BJPY•Sales expansion of products including new products(Neuro, Peripheral, Smart pump, Automated blood component processing system)• Recovery from temporary factors in Cardiac & Vascular occurred in Q1

Decrease in cost for quality system improvement in TCVS

0.8 BJPYDecrease in R&D expense for DuraHeart II

0.5 BJPY
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Progress within Product Development Pipeline
Segment

ProductFY13Q2○

Stent (above the knee/SFA)
Peripheral

Q1

Balloon (below the knee)
Stent (below the knee)
Coil Assist Stent

Neuro

Flow-diverting Stent○

Occlusion Balloon○○

New PTCA Balloon Catheter

Coronary○

OFDI (Intravascular imaging system)○(US)

Slenderized introducer sheath for TRI
Renal sympathetic denervation system (RSD)○

Ablation
RSD for TRI technique
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Progress within Product Development Pipeline
Segment

ProductFY13

Q1

Automated blood component processing
system (PRP method)○

Automated blood component processing
system (BC method)○

Q2Blood
Automated blood component collection
Management system (plasma application)
Data management system(TACSI application)
Therapeutic apheresis system (Bonemarrow stem cell application)
Needleless system

Infusion
SystemSafety IV catheter

Asia

Smart pump (infusion & syringe pump)○○

Other new products launched in Q1:<Cardiac & Vascular> Microcatheter (EU), Aspiration catheter (EU), Bare metal stent (JP),IVUS catheter for difficult lesions (JP)<General Hospital>
Needle for pen injector (EU)2013/8/1©Terumo Corporation

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Reference

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Consolidated Results: FY12Q1 thru FY13Q1(billion of yen)
Q1Mar. 2013

Q2
Mar. 2013

Q3
Mar. 2013

Q4
Mar. 2013

Q1
Mar. 2014(Apr-Jun)(Jul-Sep)(Oct-Dec)(Jan-Mar)(Apr-Jun)

Net
Sales

95.9

96.0

103.9

106.5

111.1

GrossProfit

51.7

48.8

52.9

52.2

57.0

(53.9%)(50.9%)(50.9%)(49.0%)(51.3%)

36.2

36.1

38.5

41.6

43.7

(37.8%)(37.6%)(37.0%)(39.1%)(39.3%)

15.5

12.7

14.4

10.6

13.3

(16.1%)(13.3%)(13.9%)( 9.9%)( 12.0%)

Average Exchange Rate
US$EUR

Q180 yen103 yen

SG&AExpenses

OperatingIncomeQ2
Q3Q4
Q179 yen 81 yen 92 yen 99 yen98 yen 105 yen 122 yen 129 yen

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Gross Profit Variance Analysis
(%)
1.8

2.2

FX

Loweredplant
productivity

0.4
Price
erosion

0.3
Devicetax in US

1.5

53.9%

Q1Mar. 2013

Effect oftemporaryfactors
occurred inQ1/FY12(inventory reevaluation,etc)

2013/8/1

51.3%
Q1Mar. 2014

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CAPEX, R&D Expenses(billion of yen)Mar. 2013
ResultMar. 2014
Forecast

CAPEX *

32.2

45.0

10.4 (23%)

Depreciation &Amortization *

32.6

37.0

9.3 (25%)

R&D Expenses

27.1

30.0

7.6 (25%)* Including intangibles
CAPEX: acquisition basis

Q1 Mar. 2014
Result%: Progress to forecast

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Foreign Exchange Sensitivity(billion of yen / year)

US$EURNet Sales

1.7

0.7

Operating
Income0.20.42013/8/1©Terumo Corporation

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Cash Flow
 Cash usage in good balance(Capital investment for sustainable growth, repayment of debt, and dividend)in(billion of yen)

outOthers

Depreciation&Amortization

4.1

9.3

CapitalInvestment

10.4
Net Income

9.0

Dividend

3.8
Total 18.3

Total 18.3
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Gross Profit, SG&A Expenses, Operating Income(%)
GrossProfit
53.9

50.9

50.9

49.0

51.3

37.8

37.6

37.0

39.1

39.3

9.9

12.0

Q4

Q1

SG&AExpenses

OperatingIncome

16.1

13.3

13.9

Q1

Q2

Q3

Mar. 2013

Mar. 2014(Quarterly: 3 months)
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Changes of Quarterly Average Exchange Rates

130110129

EUR (Mar. 2014)

122105

EUR (Mar. 2013)

103
98

9099 US$ (Mar. 2014)8092

US$ (Mar. 2013)
70

Ｑ１

7981

Ｑ２Ｑ３Ｑ４(Quarterly: 3 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, the forward-looking statements
including financial projections are based upon our assumptions using information
available to us at the time and are not intended to be guarantees of future events orperformance. 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
independent research.

2013/8/1©Terumo Corporation

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