Financial Results
for the First Half of the Fiscal YearEnding March 31, 2011
October 28, 2010
TERUMO Corporation

Financial Results(Unit: Billions of yen)

1H Mar. 2010

1H Mar. 2011

Net Sales

158.1

163.9

4%

Gross Profit

83.3 (52.7%)

85.6 (52.2%)

3%

SG&A Expenses

50.7 (32.1%)

52.9 (32.2%)

4%

Operating Income

32.6 (20.6%)

32.7 (20.0%)0%Ordinary Income

32.2 (20.4%)

28.2 (17.2%)-13%

Net Income

20.8 (13.1%)

18.4 (11.2%)-12%

Average foreignexchange rates

US$ 96yen
EUR 133yen

89yen
114yenImpact on
Net Sales-4%YoY (%)

2

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

Consolidated：+4% (+8%)

Mar. 2010
1H

Mar. 2011
1H( ): Constant currency

JapanOverseas+2%+6%(+16%)

87.8 89.5

70.3 74.4

Ratio of Overseas Net Sales 45% Æ 45%Europe-2%(+14%)

27.9
27.3

Americas+8%(+16%)

26.6
28.7

China+22%(+32%)

Asia &Others+15%(+16%)

3.8
4.6
12.0
13.83

Factors of the Overseas Favorable Performance
Interventional systems driveHigh growth in emerging country*% based on constant currency■ Europe: 22% growth

3.8

China

4.6-Sales of Drug Eluting Stent“Nobori” doubled■ U.S.: 17% growth-The Smooth spread of TRI
procedure contributes the sales
increase of other related
products+32%

2.7
Latin America

3.5+40%0.7
India

0.9+33%(Unit: Billions of yen)Mar. 2010
1H

Mar. 2011
1H4

Net Sales (by Business Segment)+3%(+5%)(Unit: Billions of yen)

+6%(+14%)Mar. 2010
1H

Mar. 2011
1H( ): Constant currency+6%(+12%)75.1 77.4

67.5 71.9
11.8 12.5-43%(-43%)

3.7 2.1
GeneralHospital

Cardiac &VascularBlood
Transfusion

Consumer
Healthcare5Gross Profit Rate Variance Analysis
55%

Price cut54%

Reimbursement price cut
(1.0)

0.7

0.2

VolumeCost
reduction

53%

0.752%

Shift to higher
profitable products

1.2

Foreign exchange
0.6

Others
0.3

52.7%

52.2%

51%

50%

Mar. 2010
1H

Average Exchange Rates
US$:
EUR :

1H Mar. 2010 1H Mar. 2011
96yen
89yen
133yen114yenMar. 2011
1H
6

SG&A Expenses(Unit: Billions of yen)

1H Mar. 2010

1H Mar. 2011

YoY

YoY%

Salaries & wages

19.1

19.5

+0.4

+2%

Sales Promotion
Logistical costs

5.2
4.4

5.1
4.7

-0.1+0.3-2%+7%

Depreciation &Amortization

2.62.3‐0.3‐13%

Others

11.2

11.5+0.3+3%

GeneralAdministrative Total

42.5 (26.9%)

43.1 (26.2%) +0.6+1%

R&D Expenses

8.2

9.8

SG&A TOTAL

50.7 (32.1%)(5.2%)(6.0%)+1.6 +20%

52.9 (32.2%) +2.2+4%
7

Full Year Forecast for the FYE Mar. 2011
Revised the foreign exchange rate forecasts of 2nd half and the full year
(Unit: Billions of yen)Mar. 2011
Mar. 2011
Original Forecast Revised Forecast Change
Net Sales

333.0

326.0

-7.0

Operating Income

65.2 (19.6%)

63.3 (19.4%)-1.9

Ordinary Income

65.0 (19.5%)

57.2 (17.5%)-7.8

Net Income

41.5 (12.5%)

36.3 (11.1%)-5.2

Assumed foreign exchange
rates

2HFull Year
US$ 90yen 90 yen
EUR 120yen 120 yen

2H Full Year
US$ 80yen 85yen
EUR 113yen 113 yen
8For the Future Growth

Hydrophobic
Coating1) EndoscopicGuidewire

Swellable
Coating

Hydrophillic
Coating2) Cerebrovascular
Embolization Coil

- Guidewires for
Angiography/Treatment- Sheaths for TRI Procedures
91) Endoscopic Guidewires

Strategically Develop Innovative Products*Thoroughly benchmark the product with highest shares*Survey the market needs beyond the framework of alliance

Satisfies the 2 contradictory requirements of “thinness” and “rigidity”.
Enables almost all treatments with one guidewire.

・Shorter procedure time

Advantages

・No trouble in selecting a device perindividual case・Contributing to the healthcare economy101) Endoscopic Guidewires

Change the Market by Forming a PartnershipzConditions before development- The most important device in endoscopic treatment- Overseas manufacturers dominated the guidewire market

zPurpose of development
Overwhelming sales powerin an endoscopic field

Best in-the-world technology
in guidewires

×
Change the market by producing ideal guidewires
desired by doctors111) Endoscopic Guidewires

Our Innovative Technology Evaluated by the Market
zOctober 2009: Began selling the products designed for the market
outside JapanzApril 2010: Began selling the products designed for the market
within Japan
Evoked a great response after the release
10% market share in the U.S., 20% market share in Japan

Target to “Gain 30% global share within the next 3 years”
is within our reachBecome No.1 in the global market by continuing toimprove the products through further collaboration
122) Cerebrovascular Embolization CoilTo Expand the Neuro Market with Our Unique Technology

z Cerebrovascularembolization coil132) Cerebrovascular Embolization Coil

Trends in Cerebrovascular Treatments
Surgical clippingby a craniotomy

Coiling treatment

Coil

Metal clip

Still prevalent within Japan

Microcatheter

Widespreadwithin Europe & U.S.

In the future, there will be a shift towards
less invasive coiling treatment in Japan142) Cerebrovascular Embolization CoilSuperiority of HydroCoilsz Characteristics of HydroCoil– Expands by reacting to the blood, and fills up inside ofan aneurysm– One and only technology in the world

z The result of HELPS**2010: 7 countries from Europe and U.S., Randomized
clinical trial of HydroCoil against Bare CoilRating Category

HydroCoilBare coils

Aneurysm filling
rate

68.3%

24.9%

Aneurysm
recurrence rate
Retreatment rate

HydroCoils are 8.6% lower
in comparison with barecoils
2.9%

3.6%

HydroCoils have a high fillingrate
There is a statisticallysignificant difference
HydroCoils are superior152) Cerebrovascular Embolization CoilDomestic Growth Strategies for Neuro Business1. Continuous launch of new products
2. Strengthen evidence
Triple both sales and share
3. Improve sales organization（Unit: Billions of yen）

32
10

FY09

FY10

FY11

FY12

FY12 To become No.1 in the neuro business within Japan16

Reference17Income for the 1st Half of the FYE Mar. 2011:
To the Forecast for the 1st Half
(Unit: Billions of yen)

1H
Original Forecast

Net Sales

164.0

Operating Income 32.6 (19.9%)

1H
Results

Changes163.9-0.1- 1.3

32.7 (20.0%) +0.1- 0.5

Ordinary Income

32.5 (19.8%)

28.2 (17.2%)-4.3

Net Income

20.8 (12.7%)

18.4 (11.2%)-2.4

Foreign exchange
rates
US$EUR

Impact ofForeign Exchange

Assumed90yen
120yen89yen
114yen18

Income for the 1st Half of the FYE Mar. 2011:
To the Forecast for the Full Year
(Unit: Billions of yen)

Full Year
Revised Forecast

Net Sales

326.0

Operating Income 63.3 (19.4%)

1H
Results

163.9

Progress
Rates

50%

-1.3
(Lower progress rateby 0.4%)

32.7 (20.0%) 52%

Ordinary Income

57.2 (17.5%)

28.2 (17.2%) 49%

Net Income

36.3 (11.1%)

18.4 (11.2%) 51%

Foreign exchangerates
US$Forecast

EUR

Impact ofForeign Exchange

85yen

89yen

113yen114yen-0.5(Lower progress rateby 0.8%)

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

Gross Profit
53.7
50.7

52.7

52.6

52.2

32.1

33.1

32.2

20.6

19.5

20.0

1H
Mar. 2010

2H

1H
Mar. 2011

SG&A
33.7

35.2

Operating Income
20.0
15.5
1H
Mar. 20092H

20

Changes of Quarterly Average Exchange Rates¥

140

EUR (Mar. 2010)120
EUR (Mar. 2011)100

US$ (Mar. 2010)

US$ (Mar. 2011)

80
Q1

Q2

Q3Q421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, fluctuationsof foreign exchange rates, and state of competition.
The market share information in this presentation is partly derived from ourown independent research.
22