Financial Results for the First Quarter ofthe Fiscal Year Ending March 31, 2015 (FY2014)

Terumo Corporation
August 6, 2014

Highlights in Q1
CorporateCardiac &VascularGeneral
HospitalBloodManagement

 Secured increase both in sales and profit while absorbing
reimbursement price cut in Japan
 Increased operating income by 21%. Even without FX, increased atdouble digit Expanded overseas sales centering on interventional systems despite
declined domestic sales due to the reimbursement price cut Launched new DES “Ultimaster” in June as planned, starting from EU Maintained profitability through cost reduction of General Hospital
Products, despite the reimbursement price cut and recoil reduction
in demand following the consumption tax increase in Japan Sustained increase in sales and profit by growth of therapeutic
apheresis, etc. under the challenging market environment
2014/8/6©Terumo Corporation

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Increase in Sales and Profit: Operating Income Up by 21%(Billion yen)

Q1 FY2013

Q1 FY2014

Net Sales

111.1

114.9

Gross Profit

57.0 (51.3%)

SG&A Expenses
R&D Expenses

YoY%

YoY% (Excl. FX)+3%+1%

60.7 (52.8%)+7%+2%

36.1 (32.4%)

37.9 (33.0%)

+5%

7.6

6.7-12%(6.9%)(5.8%)

Operating Income

13.3 (12.0%)

16.1 (14.0%) +21%

+12%

(Excl. Amortization)

17.3 (15.6%)

20.2 (17.6%)+9%

Ordinary Income

12.9 (11.6%)

14.4 (12.6%) +12%

Net Income

Average exchange rate

9.0
USD
99 yenEUR 129 yen(8.1%)

8.4(7.3%)

+17%

-6%

102 yen
140 yen
2014/8/6©Terumo Corporation

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Operating Income Variance Analysis(Billion yen)

0.3
1.4
1.9
1.2
FX

G/P
incrementby salesincrease

Plant
productivity
and cost
down

2.0

SG&A
andR&D

JP reimbursement -1.2
Price erosion-0.8

JP
reimbursement
and priceerosion

16.1

13.3
Q1
FY2013

Q1FY2014

2014/8/6©Terumo Corporation

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Net Sales by Region(Billion yen)

Consolidated: +3% (+1%)
Q1
Q1
FY2013 FY2014( ) Excluding Foreign Exchange

Japan

Outside of Japan-5%+9%(+5%)

43.4
38%
1,890

Europe+14%(+5%)

26.0
22.9

Americas+7%(+4%)

28.4
26.5

China-3%(-5%)

5.2
5.3

Asia &Others+11%(+10%)

11.9
10.7

71.5
62%

2014/8/6©Terumo Corporation

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Net Sales by Business Segment(Billion yen)

+9%(+5%)-4%(-4%)

Q1Q1FY2013 FY2014( ) Excluding Foreign Exchange+4%(+1%)
50.1

54.5

39.4 38.0
21.5 22.4

Cardiac &Vascular

GeneralHospital

BloodManagement
2014/8/6©Terumo Corporation

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Operating Profit by Business Segment(Billion yen)Segment
O/P

Q1 FY2013

Q1 FY2014

YoY%

YoY%
(Excl. FX)

Cardiac &Vascular

9.3 (19%)

11.4 (21%)+23%+8%GeneralHospital

4.8 (12%)4.6 (12%)-4%-2%

Blood
Management

4.1 (19%)

4.2 (19%)+3%+1%-0.8

0.0--17.3 (16%)

20.2 (18%)+17%+9%Others*Operating Income(Excl. amortization)* Others: unrelated to business segment

2014/8/6©Terumo Corporation

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Cardiac & Vascular: Increase in Sales and Profit(Billion yen)

YoY%

YoY%
(Excl. FX)

Q1 FY2013

Q1 FY2014

Sales

50.1

54.5

+9%+5%

Segment O/P
(%)

9.3
(19%)

11.4
(21%)

+23%+8%

 Increase in overseas sales of Interventional Systems +2.8 BJPY Neurovascular Intervention: new products (stent and balloon) drove its growthin global market +0.9 BJPY Decrease by 0.5 BJPY in investment for quality management system improvement at TCVS
 Reimbursement price cut in Japan -1 BJPY Launched new DES “Ultimaster” as planned, starting from EU

2014/8/6©Terumo Corporation

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General Hospital: Maintained Profitability Despite Declined Sales(Billion yen)

YoY%

YoY%
(Excl. FX)

Q1 FY2013

Q1 FY2014

Sales

39.4

38.0

-4%

-4%

Segment O/P(%)

4.8(12%)4.6(12%)-4%-2%

 Recoil reduction in demand following the consumption tax increase in Japan (pump, glucose
monitoring, etc.) -0.5 BJPY Delay in order receipt for B2B business of prefilled syringe -0.4 BJPY
 Reimbursement price cut in Japan -0.2 BJPY Reduced manufacturing cost of General Hospital Products +0.4 BJPY Initiated manufacturing of SurfloV3 at the Philippines factory for further cost reduction

2014/8/6©Terumo Corporation

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Blood Management : Sustained Increase in Sales and Profit(Billion yen)

Q1 FY2013 Q1 FY2014

YoY%

YoY%
(Excl. FX)

Sales

21.5

22.4

+4%+1%

Segment O/P(%)

4.1(19%)4.2(19%)+3%+1% Market price erosion -0.2 BJPY Delay in order receipt from a domestic customer, due to its IT system change -0.2 BJPY
 Achieved double digit sales growth in overseas therapeutic apheresis +0.6 BJPY Strong growth centering on automated collection system in Asia and Latin America +0.5 BJPY New Vietnam factory ready for operation (Completed in July)

2014/8/6©Terumo Corporation

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Progress in Q1 New Product Pipeline
BusinessCoronary

Peripheral

ProductNew DES(developed in house)
Central implantablevenous access system

RegionEU(as planned)JP(as planned)

Renal sympathetic
denervation system(RSD)

Asia & Latin A(as planned)

RSD for TRI techniqueAsia & Latin A(as planned)

Liquid formulaCentralimplantablevenous accesssystem(DewX S type)

Liquid formula(Mermed)Ablation

Nutrition

New DES(Ultimaster)JP(as planned)
2014/8/6•Semi-solidified once
introduced into stomach•Reduction of gastroesophageal reflux is expected©Terumo Corporation

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New Product Pipeline from Q2 to Q4
Business

Peripheral

Neuro
Coronary

BloodManagement

ProductRegion

Balloon (above the knee)

US

Balloon (below the knee)

JP, EU

Stent (below the knee)

EUCoil assist stent

US

Carotid stentEU

New PTCA balloon

EU

Automated blood component
collection system (plasma)

JP

Automated blood component
processing system

JP

Coil assist stent(LVIS)Therapeutic apheresis system

InfusionSystem(Bone marrow stem cell andpolymorphonuclear leukocyte application)

US

Needleless system

Asia

Smart pump(infusion & syringe pump)

Carotid stent(CASPER)

China
2014/8/6©Terumo Corporation

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ReferenceQ1 Net Sales and Growth by Region(Billion yen)
BusinessSegment

Japan

Outsideof Japan
Total

EuropeAmericasG. Total

China

Asia &Others

Cardiac &Vascular

11.8(-3%)

42.8(7%)16.4(6%)17.4(9%)4.2(-4%)4.8(14%)54.5(5%)Out of C&V
Interventional
Systems*

9.1(-4%)31.7(7%)12.9(7%)11.2(11%)

3.9(-3%)3.7(9%)

40.8(5%)GeneralHospital

28.9(-6%)

9.1(0%)

3.1(6%)

1.7(-19%)0.3(13%)3.9(7%)

38.0(-4%)

BloodManagement

2.7(-5%)19.7(1%)6.5(1%)

9.3(1%)

0.7(-18%)

3.2(7%)

22.4(1%)

G. Total

43.4(-5%)

71.5(5%)26.0(5%)28.4(4%)5.2(-5%)11.9(10%)114.9(1%)*Including Neurovascular business(YoY%): Excluding foreign exchange
2014/8/6©Terumo Corporation

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SG&A Expenses(Billion yen)

Q1 FY2013

Q1 FY2014

YoY

Salaries & Wages

15.4

16.9+1.5+10%

Sales Promotion

3.7

3.7+0.0+1%

Logistical Costs

2.7

2.7+0.0+1%

Depreciation &Amortization

5.3

5.9+0.6+11%

Others

9.0

8.7

-0.3

-3%

GeneralAdministrative Total

YoY%

36.1(32.4%)

37.9(33.0%)+1.8+5%

R&D Expenses

7.6(6.9%)

6.7(5.8%)

-0.9

-12%

SG&A Expenses
Total

43.7(39.3%)

44.6(38.8%)+0.9+2%(%) Against net sales
2014/8/6©Terumo Corporation

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SG&A Expenses(Billion yen)

Q1 FY2013*

Q1 FY2014

YoY

YoY%

GeneralAdministrative
Total

37.1

37.9

+0.8

+2%

R&D Expenses

7.8

6.7-1.1-14%

SG&A Expenses
Total

44.8

44.6

-0.3-1%* Value adjusted by excluding FX impact

2014/8/6©Terumo Corporation

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Quarterly Results(Billion yen)

Q1 FY13(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)Q1 FY14(Apr-Jun)

Net Sales

111.1

114.9

119.2

122.1

114.9

GrossProfit

57.0

60.1

61.5

63.3

60.7

(51.3%)(52.3%)(51.6%)(51.9%)(52.8%)

43.7

43.0

43.7

46.3

44.6

(39.3%)(37.4%)(36.7%)(37.9%)(38.8%)

13.3

17.1

17.8

17.0

16.1

(12.0%)(14.9%)(14.9%)(14.0%)(14.0%)

SG&A
Expenses
Operating
IncomeUSD 99 yen
Average
Exchange Rate EUR 129 yen

99 yen131 yen

100 yen
137 yen

2014/8/6

103 yen141 yen©Terumo Corporation

102 yen
140 yen

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Profit Ratio, SG&A Expenses Ratio
(%)
51.3

39.3

52.3

51.6

37.4

36.7

14.9

14.9

52.8

Gross
Margin

37.9

38.8

SG&A
Expenses
Ratio

14.0

14.0

51.9

12.0

Q1
FY13Operating
MarginQ2Q3Q4Q1
FY142014/8/6©Terumo Corporation

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CAPEX, R&D Expenses(Billion yen)

FY2014
Guidance

Q1
ResultProgress toguidance

CAPEX

42.0

9.2

22%

Depreciation &Amortization

41.0

9.7

24%

R&D Expenses

31.0

6.7

22%

Depreciation & Amortization: Including intangibles
CAPEX: Acquisition basis

2014/8/6©Terumo Corporation

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Cash Flow
Large impact of corporate tax payment in Q1
Operating CF-0.5

Investing and Financing CF-10.1(Billion yen)

9.7

13.8
Incomebeforetax

95.6

Depreciation &Amortization

18.7

Corporate tax
andothers

5.3
Increase
inworkingcapitalandothers

9.2
CAPEX

5.5

6.8
Debt
finance

Dividend

2.2
Others85.0

Cash at end
of FY2013

Cash at endof Q1 FY2014
2014/8/6©Terumo Corporation

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Foreign Exchange Sensitivity(Billion yen/year)

USD

EUR

Net Sales

1.8

0.7

Operating
Income0.3

0.4

2014/8/6©Terumo Corporation

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Quarterly Average Exchange Rates Trend
JPY
140

EUR (FY2014)

140

137

120

129

131

141

EUR (FY2013)

102 USD (FY2014)

100
99

99

100

Ｑ１Ｑ２

Ｑ３

103

USD (FY2013)80

2014/8/6

Ｑ４©Terumo Corporation

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IR Contact
Terumo CorporationCorporate 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.

2014/8/6©Terumo Corporation

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