Hello, my name is Kazuaki Kitabatake.
I will explain the 3rd quarter results of the financial period ending March 2015.
Please open to the second slide.

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First, highlights of the results.
Similarly to the first and second quarters, we were able to absorb the effects of theJapan reimbursement price revision to achieve increases in both sales and profit. In
the 3rd quarter, Japan sales in particular saw an increase.

In results by company, double-digit sales growth of interventional systems andneurovascular intervention outside Japan drove Cardiac & Vascular company
growth. Ultimaster sales also continue to expand. Sales in Japan also grew forCardiac & Vascular, driven by interventional systems products. Growth is stillnegative, but the company is closing the gap.
Next, the General Hospital Company; its 3rd Quarter results included increases inDM healthcare and Drug and Device (D&D) product sales. Beyond just sales, theGeneral Hospital company has achieved better business profitability by restructuring
its entire portfolio mix through the growth of these highly profitable two businesses.

The Blood Management Company dealt with a continually difficult marketenvironment by strengthening its cost controls. Its automated blood component
processing system and therapeutic apheresis system continued to achieve sales
growth. I will explain more about the Blood Management Company market
conditions later on.

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Again, sales and profit both increased in the 3rd Quarter YTD. Sales were363.2 billion yen, for a 5% year-over-year increase. Operating income was
52.9 billion yen, for a 10% year-over-year increase. This was led by asignificant increase in sales. Ordinary income increased 18% to 58.7 billion
yen, with the increase primarily due to the weak yen in the 3rd Quarter, which
led to an 8.1 billion yen positive foreign exchange gain.
Net income was 33.4 billion yen, for a 9% decrease from the previous year.
This was the result of a 6.4 billion yen extraordinary loss taken during the 3 rdQuarter for the transforming of the General Hospital product portfolio inEurope, which we have announced previously.
Conversely, the FY2013 3rd Quarter YTD net income was 36.9 billion yen,positively impacted by 6 billion yen from a settlement. The difference
between these extraordinary gains and losses led to a 9% year-over-year
decrease in net income.

3This slide shows the factors contributing to the 3rd Quarter YTD operating income amount.
The largest positive impact came from the increased gross profit resulting from sales
expansion. The improvement of product mix, and gross profit improvement by cost reduction,continued from the 2nd Quarter.
With increased sales, though, we also experienced increased impact from the pricereimbursement revision, and overall falling prices were another negative factor leading to theoperating income amount of 52.9 billion yen.
I will now explain in further detail the increase in SG&A. SG&A increased in the 3rd Quarter
YTD by 3.6 billion yen. We had foreseen the need for new hires in US and Europe to expand
the interventional systems and neurovascular intervention sales, and hiring was actuallylargely completed earlier, so personnel expenses have already reached approximately their
expected level in the 3rd quarter.
In Blood Management, as I mentioned before, the market continued to be difficult, so thecompany was able to hold down personnel costs to a level lower than planned.
Marketing and promotional expenses started out weak in the 1st and 2nd quarters, but in the3rd quarter they increased more, despite still being weak. The 3rd quarter also included
December, meaning that some of its results flowed into the 4th quarter. We are alreadyseeing some of that effect in the 4th quarter, and these expenses look to gain more ground
during that time.

4This shows sales by region. The decrease in Japan sales was less severe,and sales outside Japan grew, leading to positive growth overall in sales.
Outside Japan, Europe, the United States, and Asia, excluding China,achieved double-digit growth. China experienced negative growth of 2%. This
was the result of the distributor rearrangement in that country, which we havepreviously discussed, taking somewhat longer than expected and causing alull in sales. We expect these effects to continue into the 4th quarter, meaningthat growth in China will remain weak through this fiscal year.

5Cardiac & Vascular and Blood Management saw sales growth, and General
Hospital growth was negative, as was the case prior to the 3rd quarter.
However, General Hospital sales did increase enough to stem the negative
growth some.
Looking at only the 3rd quarter, General Hospital Company sales increased
3% over the same quarter in the previous year.

6This slide shows business profit by company.
Cardiac & Vascular and Blood Management both saw year-over-year
improvement in business profit, but without significant increases.

Up to the 2nd quarter of this fiscal year, the General Hospital company had
seen less business profit compared to the previous year, but in this 3 rdquarter achieved a turnaround to increase 2% over the last year’s Q3, or 1%
when excluding foreign exchange. This was due to the aforementioned 3 rdquarter increase in sales, as well as the improved profitability owing to DM
healthcare and D&D sales expansion.

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I will now explain the results of each company.
In the Cardiac & Vascular Company, there were no significant changes.
Overseas sales of interventional systems and neurovascular intervention
products continue to be the main driver. Japan price reimbursement revisions
impacted Cardiac & Vascular more than any other company, butinterventional systems and neurovascular intervention were strong enough toabsorb that impact.
Since being launched in Europe, the Ultimaster product has expanded sales
well in that market and Asia. The time it takes to register Ultimaster varies
between Asian countries, but sales began immediately in Malaysia andVietnam where registration was not required. In Singapore, Thailand,Indonesia, and the Philippines, registration took more time, but the product is
now in these markets and sales outside Japan are expanding well. That is all
regarding Cardiac & Vascular.

8In the General Hospital Company, sales increased greatly in the 3rd quarter.
In the 1st quarter, the rise in consumption tax hurt sales, and in the 2ndquarter they were also weak due to the adjustment in hospital operations that
had a temporary negative impact, as explained previously by Mr. Matsumuraof that company. General Hospital sales rebounded in the 3rd quarter,
recording an increase year-over-year.
While sales did increase in the 3rd quarter, we cannot say for certain that theresults will continue to improve the same way going forward. We are trying todetermine whether the 3rd quarter increase was only a rebound from the 1stand 2nd quarters and will be followed by another decrease, or whether it willcontinue. We will have to await the 4th quarter results to be sure, but for the
3rd quarter, we did see an increase.
The effect of DM healthcare and D&D was positive for both sales and profit,and for business profit we have seen a year-over-year increase.

9In the Blood Management Company, we saw a continued increase in bothsales and profit, driven by emerging markets such as Central and SouthAmerica and Africa. The main-driver products have been therapeutic
apheresis and the automated blood processing system, unchanged frompreviously. One item of concern with the company is that since entering thenew calendar year, we have seen demand for the same volume of platelets,
unlike with red blood cells, but at lower prices. This signifies a continuation of
the price decline and difficult market conditions. The company has been andwill continue responding to this revenue difficulty by maintaining focus oncontrolling personnel costs, as I have mentioned.

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This shows movement by quarter.
The FY2014 3rd quarter saw 129.9 billion yen in sales, for a 9% increase overthe FY2013 3rd quarter, when sales were 119.2 billion yen. It was also arobust 10% increase from the previous quarter. SG&A expenses also
increased compared to the previous quarter, but not to the same degree assales. Therefore the SG&A-to-sales ratio also improved, as did operating
profitability.

11This shows quarter-to-quarter movement, this time by gross margin, SG&A
ratio, and operating profitability.
In the 2nd quarter, SG&A ratio was 38.3%, and then decreased to 36.9% in
the 3rd quarter, resulting in a rise in operating profitability, to 15.3%.

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This slide shows the products scheduled for launch in the second half ofFY2014. The peripheral PTA balloon for below the knee, neurovascular coilassist stent and clot retriever stroke device, and DM blood glucose monitor
have all now been launched.
This concludes my explanation. Thank you for your attention.

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