Financial Results for the Fiscal Year
Ended March 31, 2011
Forecast for the Fiscal YearEnding March 31, 2012

Terumo Corporation
May 11, 2011

Financial Results(Unit: billion yen)FYE Mar. 2010

FYE Mar. 2011*

Net Sales

316.0

328.2

+4%+9%

Gross Profit

166.4(52.6%)

170.8 (52.0%)+3%+9%103.1(32.6%)

108.2 (32.9%)+5%+10%63.3(20.0%)

62.6 (19.1%)-1%+7%63.6(20.1%)

56.9 (17.3%)-11%

Net Income

40.7(12.9%)

32.3 ( 9.9%)-21%

Average exchangerates

US$ 93yen
EUR 131yen

SG&A
Expenses
Operating
IncomeOrdinaryIncome

YoY%

ExcludingForeignExchange

86yen
113yen*Including impact of accounting period adjustment of overseas subsidiaries
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Accounting Period Adjustment ofOverseas Subsidiaries
Unified accounting period of 5 Asian subsidiaries ends
in December into ends in March<FYE Mar. 2011><Former>Jan. – Dec. Jan. – Mar.
Consolidate
Subsidiaries
Subsidiaries
Results forConsolidate
Consolidate
15 months
Head Office
Head Office
Apr. – Mar.
Apr. – Mar.
Jan. – Dec.

*Unify all accounting period into Apr.- Mar. after FYE Mar. 2012Impact on results FYE Mar. 2011( addition for 3 months)(Unit: billion yen)

Net Sales

Operating Income+1.9+1.0

Net Income+0.7
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Net Sales (by Region)(Unit: billion yen)

Consolidated:+3% (+8%)

FYE
Mar. 2010

Japan+2%

Outsideof Japan+5%(+16%)FYE
Mar. 2011( ): Constant currency basis+0%(+15%)

56.6

+6%
Americas (+15%)

53.8

Europe56.6

57.0

173.9 177.1
142.1 149.2

China+18% 7.6(+28%) 8.9

Asia &Others+10%(+14%)

24.1
26.7

Outside of Japan, ratio 45%⇒46% *Excluding impact of accounting period adjustment ofoverseas subsidiaries(1.9 billion yen)
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Net Sales (by Business Segment)+2%(+4%)+6%(+14%)(Unit: billion yen)
FYE
Mar. 2010

FYE
Mar. 2011( ): Constant currency basis+3%(+8%)149.5 152.9

136.1 144.4-33%(-32%)

23.9 24.6

6.4

GeneralHospital

Cardiac &Vascular

Blood
Transfusion

4.3

Consumer
Healthcare*Excluding impact of accounting period adjustment of overseas subsidiaries(1.9 billion yen)
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Gross Profit Variance Analysis
54%

+1.2%

-1.8%
0.1

0.3

53%

0.8

VolumeCostReduction

Shift to Highly
Profitable Products

52%

Drug &Reimbursement
Price(0.9 )1.1

PriceForeign
Exchange

52.6%

51%

Mar. 2010

0.7

Average exchange rates
US$:
EUR :

Mar. 2010
93yen
131yenMar. 2011
86yen
113yen2011/5/11

52.0%

Mar. 2011
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SG&A Expenses(Unit: billion yen)FYE Mar. 2010

FYE Mar. 2011

YoY

YoY%

Salaries & Wages

38.2

38.9+0.7+2%

Sales Promotion

11.0

10.5

-0.5-5%

Logistical Costs

9.0

9.6+0.6+7%

Depreciation &Amortization

5.14.7-0.4-7%

Others22.3

24.1+1.8+9%

GeneralAdministrative Total

85.6 (27.1%)

87.8 (26.7%)+2.2+3%

R&D Expenses

17.5

20.4(6.2%)+2.9+16%

SG&A Expenses
Total

103.1 (32.6%) 108.2 (32.9%)+5.1+5%(5.5%)( ): %Net Sales
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Variance with the Forecast (Operating Income)(Unit: billion yen)

0.3

2.3

Forecast
63.3

1.9

Drop
Operation

Forecast
as of Oct. 28, 2010
Before earthquake

Forecast
61.0

Recover
Operation

SG&A Increaseand Others

Results
62.6

Forecast
as of Mar. 22, 2011
After earthquakeFYE Mar. 2011
Results

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Initiatives in FYE Mar. 2012

First Step to 1 Trillion Yen Track¾Revitalization from earthquake¾Integration of Blood Management Business¾Acquisition of Harvest Technologies Corp.

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Recovery fromearthquake

Revitalization toward Pre-Earthquake StateThrough this fiscal year, we are to regain average. 100%
factory operating ratio.
-Raw materials: Securing significant stock and alternative materials-Power: Securing by the introduction of flexible working hours and in-housepower generators

Impact on sales and profit- Limited product supply resulted as drop in sales for some products such as I.V.
solutions- Effect on R&D delayed new product launch- Needed to review projects and expense priorities to reduce cost
- Estimated the drop in sales of 10 billion yen, operating income of 3 billion yen.
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Integration of BloodManagement Business

Integration between Terumo & CaridianBCTTerumo Blood Transfusion Business + CaridianBCT= TERUMO BCTIntegration team formed with members from both companies byregion and functionCreating new value for global customers through joining bothcompanies strengths-To establish “Blood Management Business” modelAcceleration of globalization-CaridianBCT CEO as business leader
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Harvest

Acquisition of Harvest Technologies Corp.
＜Acquisition Details＞
 Target Company: Harvest Technologies Corporation (U.S.) Purchase Price:US$70 Million (approx. 5.7 billion yen, 1US$=82 yen conversion)
Separate milestone payment of the total maximum amount of $35 M over the period from 2012 to 2015

 Established:1997
 Location: U.S. & Germany (Sales in over 18 countries) Financials: Net Sales $26M, Operating Income $3M (FYE Dec. 2010)

 Products / Application:
・Existing Business: System to harvest concentrated platelet rich plasma ⇒Cardiac & Orthopedics field:
To optimize healing process at surgical wounds
・New Business: Same system ⇒ Vascular surgery: To treat Critical Limb Ischemia
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Harvest

Background and Purpose of Acquisition
Background•TCVS has been distributing Harvest’s products⇒Exclusive distribution in US cardiac surgery field since 2006

•Practical application of Cellular Therapy in growing trend*) Penetration of the therapy (U.S.)⇒15 to 20 % in Cardiac Surgery, 10% in Orthopedic surgery

Purpose•Develop business strategy encompassing not only distribution
but R&D and manufacturing•Expand our minimally invasive treatment business•Strategically advance in regenerative medicine field⇒Gained BCT’s technologies（therapeutic aphaeresis, cell expansion)and Harvest’s technology (deriving concentrated cells)
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Harvest

Advanced Technologies to Derive
Concentrated Cells from Blood and Bone Marrow

Current Fields: Cardiac surgery (Distributed by TCVS) / Orthopedics surgeryExtracted fromthe patient’s bloodand bone marrow

Centrifuged

Separated andharvested

Applied to thewounds

New Fields: Vascular surgery, etc
1. Treatment for Lower Limb Ischemia
Applying the concentrated cells
from bone marrows into ischemic
lesions of legs and heart(Clinical trials in US began Mar. 2012)

2. Treatment for Chronic Heart Failure(Under pilot study)
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Harvest

Large Growth Gained only by Existing Business
Even greater growth potentiallythrough Cellular therapy expansion

Unit: $milNet Sales＜Payment Details＞

100NewMilestone$35 million

Existing

80

At Closing$70 million

6040

Existing

Existing

７％
１R
Gs CAsenisg Bunitsix
E

200

FY050607080910～1315
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Forecast for the Fiscal YearEnding March 31, 20122011/5/11

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Forecast for the Fiscal Year Ending March 31, 2012
(Unit: billion yen)Mar. 2011

Mar. 2012

Results

Forecast(*)

YoY

ExcludingForeign
Exchange

332.0

+1%

+3%

Operating Income 62.6(19.1%)

65.0(19.6%)

+4%

+7%

Ordinary Income

56.9(17.3%)

63.0(19.0%)+11%Net Income

32.3( 9.9%)40.0(12.0%)+24%

Averageexchange rates

US$ 86 yen

80yen

EUR 113 yen

113yen328.2

Net Sales(*)Excluding forecasts of CaridianBCT and Harvest(*)Including the impact of unified depreciation method into Straight-line Method
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Unified Depreciation of Property, Plant, and Equipment
into Straight-line MethodObjective
9Speed up global business management
9Straight-line method as the standard inoverseas subsidiaries
9Match the actual business condition
9Ready for IFRSImpact on FYE Mar. 2012
9Approx. 4.6 billion yen decrease in depreciation
expenses
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Operating Income Variance Analysis(Unit: billion yen)(+4%)
Accounting period
adjustment of overseas
subsidiaries Impact of Foreign-1.0

Exchange

+4.6

(+1%)

-1.7

Unify
depreciation
method
65.0

`

62.6

Mar. 2011
Results

59.9

60.4

Mar. 2011
Results(Adjusted)

Mar. 2012
Forecast

Mar. 2012
Forecast(Adjusted)
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Estimate of Amortization on Goodwill after
CaridianBCT Acquisition

IncrementalApprox. 20 Bln yen

Annual increase inamortization
Approx. 10 billion yenGoodwillApprox. 160 Bln yen* The above figures are in-house estimates and maybe revised after asset valuation by third-party external specialists
and audit by independent auditors.
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Estimate of Acquired Companies’ Impact
on Financial Forecast¾High profit of core business from year one¾Break-even after amortization of goodwill etc.
(Unit: billion yen)

CaridianBCT
48.0

Harvest
2.0

Total
50.0

Operating income

10.0

0.4

10.4

Amortization ofgoodwill etc.*

▲10.0

▲0.3

▲10.3

Net Sales* The above figures are in-house estimates and maybe revised after asset valuation by third-party external specialists andaudit by independent auditors.

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Image of Net Sales and Income Including
Acquired Companies
Unit: billion yen, % YoY, ( )Excluding impact of Foreign Exchange+17%(+21%)+16%(+19%)

382.0
50.0

75.0
ExcludingAmortization*Calculated based on the numberof share as of Mar. 2011

Goodwill
Amortization

64.2
Goodwill
Amortization

328.2

332.0

Mar. 2011

Mar. 2012

Net Sales

62.6

Mar. 2011+4%(+7%)278yen65.0

Mar. 2012

350yenMar. 2011 Mar. 2012Cash EPS

Operating Income(Cash based net income per share)
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ReferenceFinancial Results (Quarterly three months)(Unit: billion yen)

Q4FYE Mar. 2010

FYE Mar. 2011 Q4(*)

Net Sales

77.1

84.0

+9 %

Gross Profit

40.3(52.2%)

43.6 (52.0%)+8 %SG&A Expenses

27.0(35.0%)

29.1 (34.7%)+8 %Operating Income

13.3(17.2%)

14.5 (17.3%)+9 %Ordinary Income

13.2(17.2%)

14.0 (16.7%)+6 %Net Income

8.9(11.5%)

4.9 (5.8%)-45%

Average exchange rates

US$ 91yen
EUR 126yen

YoY%

82yen113yen*Including impact of accounting period adjustment of overseas subsidiaries
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Financial Results of 2nd Half for FYE Mar. 2011:
To the Forecast for the 2nd Half
(Unit: billion yen)

Net Sales

2H Forecast

2H Results

Progress Rates

162.1

164.3

101%

Operating Income 28.3 (17.5%)

29.9 (18.2%) 106%

Ordinary Income

26.4 (16.3%)

28.7 (17.5%) 109%Net Income

13.7 ( 8.5%)

14.0 ( 8.5%) 102%

80yen

83yen

113yen112yenImpact of Foreign
Exchanges+1.5 billion yen(Upper progress rate by0.9%)+0.4 billion yen(Upper progress rate by1.5%)

Average exchange rates
(US$)
(EUR)

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Gross Profit, SG&A, Operating Income Rates(%)
Gross Profit
52.2

52.1

52.3

51.7

52.0

SG&A
Expenses

35.0

32.5

32.0

32.5

34.7

Operating
Income

17.2

19.6

20.3

19.2

Q4

Q1
Mar. 2011

Q2

Q3

17.3
Q4(Quarterly: 3 months)
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Changes of Quarterly Average Exchange Rates
yen
140

120

EUR
(Mar. 2010)
EUR(Mar. 2011)
113

117

10080

US$(Mar. 2010)

US$ 92( Mar. 2011)

111

112

82

8683

Q1Q2Q3Q4(Quarterly average exchange rates)
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R&D Expenses(Unit: billion yen)

25

+3%
+16%

20
1510

20.4
15.8

17.2

21.0

17.5

50
Mar. 2008

Mar. 2009

Mar. 2010

Mar. 2011

Mar. 2012(Forecast)
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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, 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, fluctuations of foreignexchange rates, and state of competition.
The market share information in this presentation is partly derived from our own
independent research.

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