1st Half Financial Resultsfor FYE/Mar. 2010

Terumo Corporation
October 29, 2009
1Financial Results
1H FYE/Mar. 2009

(Unit: Billion yen)

1H FYE/Mar. 2010

Rate ofchange

Net Sales

157.0

158.1

1%

Gross profit

84.3(53.7%)

83.3(52.7%)-1%

SG&A Expenses

52.8(33.7%)

50.7(32.1%)-4%

Operating Income

31.5(20.0%)

32.6(20.6%)

4%

Ordinary Income

32.8(20.9%)32.2(20.4%)-2%

Net Income

23.0(14.6%)

20.8(13.1%)-10%

Average exchange rate

1US$ 106 yen
1EUR 163 yen

96 yen133 yen

Impact on Net Sales-7%2

Sales (by Region )(Unit: Billion yen)Japan/Outsideof Japan Total

+8%

81.3

87.81%(+8%)

Outside of Japan Total-7%(+9%)Ratio of outside of Japan
48% → 45%

Mar. 2009
1H( ) : local currency
basis

-12%

-3%

-7%(+9%)(+8%)(+10%)

30.7

27.2

28.9

Mar. 20101H

28.1
16.0 14.9

JapanEuropeAmericas

Asia andOthers
3

Sales ( by Product Group)(Unit: Billion yen)Mar. 2009
1H0%
(+4%)

+1%

Mar. 2010
1H( ) : local currency
basis(+13%)

-6%

75.2

75.2

66.6

67.4(+3%)

+41%
12.6

11.8(+44%)

2.6GeneralHospital

Cardiac &VascularBlood
Transfusion

3.7

Consumer
Health-care
4Both the Gross Profit and SG&A Expenses Rate
Contributed to a Recovery of the Operating Income Rate
55.0(%)

Growth profit rate
53.7

-3.0
50.7

+2.0

52.7

-3.1

32.1

45.0

33.7
35.0

35.2
+1.5

SG&A expenses rate
25.0

20.6

20.0
-4.5
Operating income rate

15.5

+5.1

15.0

1H FYE/Mar. 2009

2H

1H FYE/Mar. 20105

Gross Profit Rate Improved(%)
Impact of Currency

Cost down, cost
improved and others+0.2+1.3
Shift to highly
profitable products+2.0+0.5
2H FYE/Mar.2009 50.7% → 1H FYE/Mar.2010
Average exchange rate

US＄EUR

95yen
124yen96yen
133yen

52.7%6

SG&A Expense Rate Improved(%)
Salariesand wages- 0.1

R&D Expense- 1.1

Freight andother delivery cost

- 0.3

SP and others

‐3.1
- 1.6

Impact ofcurrency+ 0.0

2H FYE/Mar. 2009 35.2% → 1H FYE/Mar. 2010 32.1%
7

Operating Income Rate Recovered
to the Order of 20%(%)
25
22.2
21.5

20.6
20.0

20

15.5

15
FYE/Mar. 2008
1H

FYE/Mar. 2009
2H

1H

2H

FYE/Mar. 20101H
8

- Global Healthcare Reforms
and Growth Strategies- Other Topics

9GlobalGlobal Healthcare Reforms
China-Economic development and risingincome levels-Government investment of a total of
120 billion dollars-Reforms toward a universal healthinsurance plan started

U.K.
-Improving the quality of medical
service with three elements of“people, capital and newtechnologies”

US-Getting serious about solving theissue of more than 45 million
uninsured people-Healthcare reform bill underdeliberation to pass within the year

Japan
-Management improvement of hospitals
and increase of doctors under review
10GlobalGrowing Opportunities- China and other emerging markets expanding- US market changing, with focus shifting
to the healthcare economy- Japan examining aggressive measures in fields
such as emergency medical service and etc.

A wide variety of growth drivers from all regions and fields
Promoting strategies focusing on the healthcare economy
11

Strengthening Business Structuresin China and Emerging Countries
China: A dedicatedcorporate executive posted in Beijin

GlobalBeijin
Chengdu- Strengthen strategy function

ShanghaiGuangzhou
Hong Kong◆October 2009
Strengthened import and sales
functions of Brazilian subsidiary◆2007
Reorganized local representative inChile into an affiliate company

South America：
Continuing tostrengthen business
bases
12

Supporting the Improvementof the medical infrastructure

GlobalPhilippines
RussiaNurse training
Live Demonstration

South Africa

Terumo Medical Pranex
TRI seminar
BrazilSimulator training

TRI symposium

13

US

Establishing a Holding Company
The number of subsidiaries increased
due to mainly M&As.
Building a foundation for further development
through integrated management.

2006
Micro Vention acquired
2006
Direct sales ofInterventional systemsstarted
2003
Terumo Heart established◆◆

1999
Operations purchasedfrom 3M

Holding Company
New organization starts next January
14

USChanges - Business Opportunities
Interventional treatment through radialartery (wrist) attracted attention
Improving Product Lineup
Ultimate interventional system technology
enabling one-day treatment
Releasing new product suitable for “TRI”
Guiding Catheter

Devices suitable for “TRI” (Launched in US)

Arrest of bleeding M coated sheath

Angiographic catheter

TRI seminar hosted by Terumo
Crowdedwith people
even standing
in thecorridor
15*TRI (Transradial Coronary Intervention)Japan

Further Expanding Business Domains
An entry into the pain relief market for patients ofcancer
Announced partnerships with Teikoku Seiyaku (August)and Takeda Pharmaceutical (September)
23.4

Extremely small amount of narcotics use in Japan13

Use per population(when Japan = 1)

9.6
8
6.4

5.5
1.8

1
0.1

US

GermanFinlandReference：International Narcotics Control Board

SwedenFranceUK

Italy

China

Japan

16

JapanStrategies in This BusinessCo-medical educationand training-Comprehensive lineupof narcotics formulations-Diverse administrationroutesInfusion

Practical training of WHO treatment methodof narcotics formulations

OralInjection
Pulmonary

Seminars for certified nurses for cancer pain,
certified pharmacists for pharmaceutical
palliative care, etc.

Transepidermal
17Consumer Health-care BusinessEnjoying Sales

Japan

Accelerated development cycles

Digital blood pressure monitors
Digital thermometerear type

Digital blood pressure monitor

Increasing demand for thermometers
as anti-swine Flu measures18

New Syringes for Exclusive Usewith Vaccines DevelopedJapan

Reducing residue

Effectively use vaccines
Thin needle

Less pain“FN Syringes”

No need for needle replacement
Increasing efficiency
in the medical frontline

Non-removable needles
October 19 Launched19

Toward Increased Production
and Improved Production Efficiency
New Ashitaka factory buildings
Began operation in October

Vietnam Factory
Expanding production
20Forecast for the Year Revised Upward(Unit: Billion yen)

1H Result

Forecast

FYE/Mar. 2010
PreviousForecast

158.1

315.0

315.0

Operating Income

32.6(20.6%)

63.0(20.0%)

56.0（17.8%）

Ordinary Income

32.2(20.4%)

61.0(19.4%)

56.0（17.8%）

Net Income

20.8(13.1%)

40.0(12.7%)

37.5（11.9%）

FYE/Mar.2010

Net Sales

US＄Average exchange rate EUR
2H forecast rate

FYE/Mar.2010

96 yen90 yen95 yen133 yen132 yen

125 yen

US＄85 yen

EUR

130 yen21

Reference22

Gross Margin(%)

Shift to highly
profitable products

Cost downOthers

+ 0.6

- 0.8

Impact of currency

+ 0.7
- 1.5
- １.0

1H FYE/Mar. 2009 :53.7% → 1H FYE/Mar. 2010 :52.7%
Average exchange rate

US$EUR

106 yen
163 yen

96 yen133 yen23

SG&A Expenses(%)

Salariesand wages- 0.3

Freight andR&D Expenses other delivery cost

+ 0.0

- 0.3

SP and others

- 1.2

- 1.6
Impact ofcurrency+ 0.2

1H FYE/Mar. 2009 :33.7% → 1H FYE/Mar. 2010 :32.1%24

ReferenceReference(Unit: millions of yen)Mar. 2009
1st Half

Mar. 2010
1st Half

Mar. 2010
Forecast

Research and Development

7,983

8,199

17,500Depreciation and Amortization

9,515

9,459

21,000Investment in Plant and Equipment

9,767

9,822

23,000Free Cash Flow

1,307

15,948Net Income per Share (yen)118.56109.38210.6425

IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp
Among the information that Terumo discloses, forecasts of financial performanceon future projections contain potential risks and uncertainty since these are forecasts
on projections made by Terumo based on limited information available at themoment of disclosure. Accordingly, it should be noted that actual results may differ
from those forecasts on projections due to various factors. Factors affecting toactual results include, but are not limited to, changes in economic conditions
surrounding Terumo, fluctuations of foreign exchange rates, and state ofcompetition.
The market share information in this booklet is partly derived from our own
independent research.
26