Terumo Corporation
IFRS Financial Results for the Fiscal Year Ended
March 31, 2019－

1 －

IFRS Financial Results for the Fiscal Year Ended March 31, 2019
May 9, 2019
Exchange where listed: TSE

Name of listed company: TERUMO CORPORATION(URL http://www.terumo.com/): 4543: Shinjiro Sato, President and CEO: Atsuo Omagari, General Manager, Corporate Communication Dept.
: +81 / 3-6742-8550

Company code number
Representative:
Please address all communications to
Phone

1. Consolidated Financial Highlights for the Year Ended March 2019
(From April 1, 2018 to March 31, 2019)(1) Consolidated operating results(Notes: The amounts shown below ignore values of less than a million yen)

Revenue

Operating profit(Millions of yen)%

(Millions of yen)

599,481
587,775

2.0
14.3

106,637
108,552

Year ended March, 2019Year ended March, 2018

Basic Earnings per share

Profit before tax% (Millions of yen)

(1.8)
23.7

102,709106,630(Yen)%(Millions of yen)

(3.7)
42.4

79,287
91,201% (Millions of yen)

(13.1)
66.1

Return on equity attributable to theowners of the parent

Diluted Earnings per share

Profit for the year
attributable to theowners of the parent

Profit for the year

(Yen)

79,47091,295%(Millions of yen)%

(13.0)
66.0

98,914
67,666

46.2
36.2

Profit before tax
per total assets%

Total comprehensive
income for the year

Operating profit
to revenue%%

Year ended March, 2019108.70104.97
12.7
9.3
17.8
Year ended March, 2018129.56121.03
17.5
10.1
18.5
(Notes) Equity in earnings of affiliates: March 2019: (162) million yen March 2018: (218) million yen
Adjusted operating profit: March 2019: 122,128 million yen March 2018: 124,929 million yen
Terumo Corporation (the “Company”) conducted a two-for-one stock split for its common stock effectively on April 1, 2019. Basic earnings per share and diluted earnings per share have been
calculated on the assumption that the stock split had been carried out at the beginning of the previous fiscal year.
During the year ended March 31, 2019, the Company finalized the provisional accounting treatment for the business combination which was carried out in the year ended March 31, 2018. As a result,the corresponding figures of the year ended March 31, 2018 reflect the finalization of the provisional accounting treatment.
(2) Consolidated financial position
Total assets

Equity attributable to theowners of the parent

Net assets(Millions of yen)

(Millions of yen)

Equity attributable to theowners of the parent ratio(Millions of yen)

Equity attributable to theowners of the parent per
share

%

(Yen)

As of March 31, 2019
1,120,790
698,113
698,03462.3
939.60
As of March 31, 2018
1,081,045
550,435
550,30750.9
777.94(Notes) The Company conducted a two-for-one stock split for its common stock effectively on April 1, 2019. Equity attributable to the owners of the parent per share has been calculated on theassumption that the stock split had been carried out at the beginning of the previous fiscal year.
During the year ended March 31, 2019, the Company finalized the provisional accounting treatment for the business combination which was carried out in the year ended March 31, 2018. As a result,the corresponding figures of the year ended March 31, 2018 reflect the finalization of the provisional accounting treatment.
(3) Consolidated statements of cash flows
Cash flows from operating
activities
Year ended March, 2019Year ended March, 2018

Cash flows from investing activities

Cash flows from financing
activities

Cash and cash equivalents at theend of the year

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

93,571
114,562(74,792)(44,105)(67,540)(4,132)

122,982
167,832

2. Dividends
Ratio ofdividends to net
assets(consolidated)

Cash dividends per share
1st quarter2nd quarter(Yen)

3rd quarter(Yen)

4th quarter(Yen)

Total dividends(annual)

Total

(Yen)

(Yen)

Payout ratio(consolidated)(Millions of yen)

%

%

－
－
Year ended March, 2018
23.00
27.00
50.00
17,645
19.3
3.4－－
Year ended March, 2019
27.00
27.00
54.00
20,035
24.8
3.1－－
Year ending March, 2020 (forecast)
14.00
14.00
28.00
25.7
(Notes) The Company conducted a two-for-one stock split for its common stock effectively on April 1, 2019. For the years ended March 2018 and March 2019, the amounts of dividends before the stock

split are recorded. For the second quarter and year-ended dividends in the year ended March 2020(forecast), the amounts of dividends are recorded in consideration of the effects after the stock split.

3. Consolidated Forecast for the Year Ending March, 2020 (From April 1, 2019 to March 31, 2020)
Revenue(Millions of yen)

Adjusted operating profit%(Millions of yen)%

Profit for the year
attributable to the ownersof the parent

Operating profit(Millions of yen)%

(Millions of yen)%

Earnings per share(Yen)

308,000
8.1
59,5007.6
52,0009.3
38,50011.7
51.82
Year ending March, 2020
635,000
5.9
124,000
1.5
109,000
2.2
81,0001.9
109.03(Notes) Assumed exchange rate for fiscal year ending March, 2020: USD1=JPY108, EUR1=JPY123
The Company split each share of common stock into two shares effectively on April 1 2019, and this forecast of Earnings per share have been calculated in consideration of this stock split.
3.

Half year ending September, 2019

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 onlimited 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 not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.

－

2 －4. Consolidated Financial Statements① Consolidated Statements of Financial Position
As ofMarch 31, 2018

（Unit: Millions of yen）
As of
March 31, 2019

AssetsCurrent assets
Cash and cash equivalents

167,832

122,982

Trade and other receivables

121,402

128,462

Other current financial assets

659

1,744

112,064

134,106

Inventories
Current tax assets

530－

Other current assets

8,551

11,426

Total current assets

411,042

398,722

Property, plant and equipment

179,222

201,986

Goodwill and intangible assets

444,434

468,885

Non-current assets

Investments accounted for using the equity
methodOther non-current financial assets

5,710

5,571

13,815

17,131

Deferred tax assets

23,356

24,624

Other non-current assets

3,462

3,868

Total non-current assets

670,003

722,068

1,081,045

1,120,790

Total assets－

3 －（Unit: Millions of yen）
As of
March 31, 2019

As ofMarch 31, 2018
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payables

67,515

81,476

Bonds and borrowings

47,436407－
741

15,97010,199

198

236

Other current liabilities

47,48350,258

Total current liabilities

179,013

142,912

Bonds and borrowings

288,776

225,135

Other non-current financial liabilities

17,516

6,607

Deferred tax liabilities

24,12424,302

Defined benefit liabilities

10,063

12,823

82

88

Other non-current liabilities

11,032

10,807

Total non-current liabilities

351,596279,764

530,609422,677

Share capital

38,716

38,716

Capital surplus

52,44552,029Treasury stock(101,546)(32,381)

Retained earnings

588,932

646,223

Other components of equity(28,240)(6,553)

550,307

698,034

128

78

550,435

698,113

1,081,045

1,120,790

Other current financial liabilities
Current tax liabilities
Provisions

Non-current liabilities

Provisions

Total liabilities
EquityTotal equity attributable to the owners of theparentNon-controlling interests
Total equity
Total liabilities and equity－

4 －② Consolidated Statements of Profit or Loss
For the year ended
March 31, 2018587,775
268,442
319,333
212,3634,764
3,180
108,552
1,089
2,792

（Unit: Millions of yen）
For the year ended
March 31, 2019
599,481272,984
326,497
226,334
9,801
3,327
106,637
2,111
5,876

(218)

(162)

106,630
15,42991,201

102,70923,422
79,287

Attributable to:
Owners of the parent
Non-controlling interests
Total profit for the period

91,295(94)
91,201

79,470(183)
79,287

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)129.56121.03108.70104.97

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Share of profit (loss) of investments accounted
for using the equity method
Profit before tax
Income tax expenses
Profit for the period－

5 －③ Consolidated Statements of Comprehensive Income

For year ended
March 31, 2018
91,201（Unit: Millions of yen）
For year ended
March 31, 201979,287

298

844

(46)

(1,766)

252

(921)

(24,395)

20,895

2

(353)

607

8

(1)

－

(23,787)

20,549(23,534)

19,627

67,666

98,914

Owners of the parent

67,774

99,100Non-controlling interests

(108)

(185)

67,666

98,914

Profit for the period
Other comprehensive income
Items that will not be reclassified to profit or loss
Changes in financial assets measured at fairvalue through other comprehensive income
Remeasurement of difined benefit plan
Total items that will not be reclassified to profit
or loss
Items that are or may be reclassified subsequently
to profit or loss
Exchange differences on translation of foreign
operations
Cash flow hedges
Cost of hedging
Share of other comprehensive income/(loss) ofinvestments accounted for using the equity
methodTotal items that are or may be reclassified
subsequently to profit or loss
Other comprehensive income/(loss) for the period
Total comprehensive income for the period
Attributable toTotal comprehensive income for the period(Note)

Items in the above statement are net of tax.

－

6 －

④ Consolidated Statements of Changes in Equity（Unit: Millions of yen）
Equity attributable to the owners of the parent
Other
CapitalTreasury
Retainedcomponents ofsurplusstockearnings
equitySharecapitalBalance at April 1, 2017

Noncontrollinginterests

Total

Total equity

38,71652,478(108,225)

513,578(5,126)

491,421101

491,522

Profit for the period

－

－

－

91,295－91,295(94)

91,201Other comprehensive income

－

－

－

－

(23,520)(23,520)(14)(23,534)

Total comprehensive income
Acquisition of treasury shares

－

－

－

91,295(23,520)

67,774(108)

67,666

－

－

(6)

－

－

(6)

－

(6)

Disposal of treasury shares

－

－

109

(19)

(90)

0

－

0

Dividends－－－(15,839)－(15,839)－(15,839)

－

－

－

(50)

50

－

－

－

－

－

－

－

－

－

135

135

－

－

－

－

447

447

－

447

－

(33)

6,576

(33)

－

6,509

－

6,509

－

(33)

6,679

(15,942)406(8,889)135(8,753)38,71652,445(101,546)

588,932(28,240)

550,307128

550,435

Transfer from other components ofequity to retained earnings
Change in shares of subsidiaries
due to capital increase
Share-based payments
Conversion of convertible bonds
Total transactions with the ownersof the Company
Balance at March 31, 2018

（Unit: Millions of yen）
Share
capitalBalance at April 1, 2018

Equity attributable to the owners of the parent
Other
CapitalTreasury
Retainedcomponents ofsurplusstockearnings
equityNoncontrollinginterests

Total

Total equity

38,71652,445(101,546)

588,932(28,240)

550,307128

550,435

－

－

－

54

－

54

－

54

38,71652,445(101,546)

588,986(28,240)

550,361128

550,490

Profit for the period

－

－

－

79,470－79,470(183)

79,287

Other comprehensive income

－

－

－

－

19,63019,630(2)

19,627

Total comprehensive income
Acquisition of treasury shares

－

－

－

79,47019,63099,100(185)

98,914

－

－

(9)

－

－

(9)

－

(9)

Disposal of treasury shares

－

－

155

(47)

(107)

0

－

0

Dividends－－－(19,555)－(19,555)－(19,555)－－－(1,949)

1,949

－

－

－

－

－

－

－

－

－

135

135

－

－

－

－

215

215

－

215

－

(415)

69,018(681)－

67,921－

67,921－(415)

69,164(22,233)

2,057

48,572

135

48,70838,71652,029(32,381)646,223(6,553)

698,034

78

698,113

Change of the accounting principles
Balance after the adjustment

Transfer from other components ofequity to retained earnings
Change in shares of subsidiaries due
to capital increase
Share-based payments
Conversion of convertible bonds
Total transactions with the owners of
the Company
Balance at March 31, 2019－7 －

⑤ Consolidated Statements of Cash Flows
For the year ended
March 31, 2018
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Share of the loss/(gain) of investments accounted forusing the equity method(Decrease) /increase in retirement benefit liabilities
Interest and dividend income
Interest expenses
Foreign exchange (gain)/loss(Gain)/Loss on disposal of property, plant and equipment(Increase)/decrease in trade and other receivables(Increase)/decrease in inventories
Increase/(decrease) in trade and other payables
OthersSub-totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flow from investing activities
Payments for purchase of time deposits
Proceeds from withdrawal of time deposits
Payments for purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchase of intangible assets
Payments for purchase of financial instruments
Proceeds from sale of financial instruments
Payments for business acquisition
Payment for acquisition of shares of subsidiaries due tochanges in the scope of consolidation
Net cash used in investing activities
Cash flow from financing activities
Repayment of short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issue of corporate bonds
Proceeds from non-control interests
Finance lease payments
Payments for repurchase of treasury stock
Payments for dividends
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year－

8 －（Unit: Millions of yen）
For the year ended
March 31, 2019106,630
42,035

102,709
44,035

218

162

2,204
(855)
1,805
616
557
(9,256)(7,537)
3,991(1,639)138,770
1,039(1,129)(24,118)
114,562293(1,507)
2,051
(455)
(489)
(5,935)(20,144)
6,682(4,155)
123,249
1,687(1,116)(30,249)
93,571(25)－(31,866)
32(9,456)(572)－(2,217)(1,373)
17(39,326)
1,887(15,038)(1,200)524－－(20,283)(44,105)(74,792)(120,000)－

119,638(7,759)19,931
135
(232)
(6)
(15,839)(4,132)－(47,764)
－
135
(346)
(9)
(19,555)(67,540)(3,538)

3,912

62,786
105,046
167,832(44,849)
167,832
122,982

5. Business Combination
For the year ended March 31, 2018
There is no significant business combination for the year ended March 31, 2018.
For the year ended March 31, 2019
Business combinations by acquisition
Acquisition of stock of Essen Technology (Beijing) Co., Ltd., a China-based company, which became a subsidiary of
the Company(1) Overview of the business combination①Name of the acquired company and its business
Name of the acquired company: Essen Technology (Beijing) Co., Ltd.
Business: Development, manufacture, and sale of drug-eluting stents (DES)②Main objectives for the business combination
Interventional systems market in China is predicted to increase by over 10% annually and is expected to become
the biggest market in a few years.
The Group has grown rapidly in China selling interventional products, such as guidewires and balloon catheters.
However, it has not yet offered coronary stents in that market.
As the entering the Chinese market, where the importance of domestic products is increasing, with adomestically manufactured DES helps Terumo to expand its interventional systems business, the Group acquired
Essen Technology Co., Ltd..
③Acquisition date
December 29,2018④Legal form of the acquisition
Stock acquisition with cash as consideration⑤Percentage of voting rights acquired 100%
(2) Amounts and breakdown of consideration for the acquisition(Unit: Millions of yen)
Cash and cash equivalents

12,936

Accounts payable-other

1,420

Contingent consideration

499

Total

14,855(Note 1) Contingent consideration is included in the contract. Contingent consideration may be charged for the
related future payment up to RMB310(undiscounted) million as ceiling based on specific performanceindicators of acquiree. Contingent consideration has been categorized as level 3 of the fair value
hierarchy.
(Note 2) Acquisition costs related to the business combination amounting to ¥ 458 million are recognized as an
expense in “Selling, general and administrative expenses”.

－

9 －(3) Fair value of assets acquired, liabilities assumed and consideration on the acquisition date
(Unit: Millions of yen)
Fair value of consideration for the acquisition

14,855Current assets
Cash and cash equivalents

1,807

Trade and other receivables

350

Inventories

448

Other current assets

49

Non-current assets
257

Property, plant and equipment

4,523

Intangible assets

573

Other non-current assets
Current liabilities(217)

Non-current liabilities(634)

Fair value of acquired assets and liabilities

7,157

Goodwill

7,698(Note 1) Consideration for acquisition is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. The above amounts, which are fair values based on the best estimate at present, are provisional
because adjustment of the consideration for acquisition and allocation of the consideration for acquisition based onfair values of identifiable assets and liabilities have not been completed. Therefore, the above amounts may berevised within one year from the acquisition date when additional information was obtained related to facts andcircumstances that existed as of the acquisition date.
In the three months ended March 31, 2019, due to allocation of the consideration for acquisition, amounts of assets
and liabilities as of the acquisition date were revised. The nature of major revisions is an increase in intangible
assets of ¥4,226 million, an increase in non-current liabilities of ¥634 million and a decrease in goodwill of ¥3,384
million.

(Note 2) Fair value of acquired receivables, contractual receivables and estimated uncollectible amountAs for the fair value of ¥350 million of the acquired trade and other receivables, the total amount of contracts is ¥413
million and the estimate of the contractual cash flows not expected to be collected at the acquisition date is ¥63 million.

(Note 3) Goodwill
Goodwill arises from the expected additional earning power in the future due to business development. Goodwill
recognized is not expected to be deductible for tax purposes.

－

10 －

(Note 4) Intangible assets, included in non-current assets, comprise of technologies of ¥2,941 million and trademark of ¥1,575
million. Technologies are amortized on a straight-line basis over 10 years. As the trademark is continuously used infuture and the renewal of trademark is simple and convenient, the trademark is not amortized as intangible assets withindefinite useful life.

(4) Cash flow information
Payment for acquisition of shares is as follows:(Unit: Millions of yen)
Payment for acquisition ofshares12,936

Cash as consideration for acquisition
Cash and cash equivalents held by the acquiree at(1,807)the acquisition of control
Foreign currency translation differences

89

Total

11,217(5) Revenue and net profit of the acquired company
Disclosure is omitted because the impact on the Consolidated Statement of Profit or Loss for the year ended March
31,2018 is insignificant.

(6) Impact on consolidated financial statements under the assumption that the business combination was completed at the
beginning of the year (pro-forma information)
Disclosure is omitted because the impact is insignificant.

－

11 －

6. Segment information
Reportable segment information(1) Main products belonging to each reportable segment
Reportable segments

Sub-segments

Main productsInterventional Systems (TIS)

Angiographic guidewires, Angiographic
catheters, Introducer sheaths, Vascular closure
devices, PTCA balloon catheters, Coronary
stents, Self-expanding peripheral stents, IVUS,
Imaging catheters, etc.

Neurovascular

Coils and stents for treating cerebral aneurysm,
Aspiration catheters and clot retrievers fortreating ischemic stroke, etc.

CV Systems

Oxygenators, Cardio-pulmonary bypass system,
etc.

Vascular Graft

Artificial vascular grafts, Stent grafts

Hospital Systems

Infusion pumps, Syringe pumps, Solution sets,
Syringes, I.V.solutions, Pain management
products, Nutritious food, Adhesion barriers,
Blood glucose monitoring systems, Digital
thermometers, Blood pressure monitors, etc.

Alliance

Contract manufacturing of prefilled syringes,
Devices to pharmaceutical companies for use in
drug kits (Prefillable syringes, Needles forpharmaceutical packaging business) , etc.

－

Blood bags, Automated blood collection system,
Automated blood component processing system,
Pathogen reduction technology, Automatedcentrifugal apheresis system, Cell expansion
system, etc.

Cardiac and Vascular Company

General Hospital Company

Blood Management Company

－

12 －

(2)Revenue and operating results of the reportable segments of the Group are described below.
For the year ended March 31, 2018

（Unit: Millions of yen）

Reportable Segments

Revenue
Revenue from sales
to external customers
Segment Profit(Adjusted operating
profit)（Adjustment item）
Amortization of
intangible assets
acquired throughbusiness combinations
Non-recurring profit orloss

Adjustments（Note）

Amountrecorded on
consolidated
financialstatements

Cardiacand
VascularCompany

GeneralHospitalCompany

Blood
Management
Company

324,001

158,848

104,697

587,547

228

587,775

83,643

26,76015,072

125,476(547)

124,929(6,068)－(8,386)(14,455)－(14,455)

Total(1,921)

Operating profit

108,552

Finance income

1,089

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
method(2,792)Pre-tax profit

106,630(218)

Other items
Depreciation and
17,522
9,657
amortization
Net increase of
tangible and intangible
22,494
9,795
noncurrent assets(Note） １．Amounts in ‘Adjustments’ are as follows:

14,35941,539495

42,0358,431

40,721

4,963

45,685（1）¥228 million adjustment to revenue from sales to external customers is mainly proceeds from outward
temporary staffing that is not attributable to reportable segments.
(2) ¥(547) million adjustment to segment profit consists of ¥315 million for “inventories” and ¥(862) million
for “others”.

－

13 －

２．¥ (1,921) million for “Non-recurring profit or loss” includes ¥ (1,326) million for acquisition costs related tobusiness combinations and incidental expenses occurred after business combinations, and ¥ (594) million forother expenses, such as fixed assets disposal cost.
３．Depreciation and amortization includes amortization of intangible assets acquired through businesscombinations.
４．During the year ended March 31, 2019, the Company finalized the provisional accounting treatment forthe business combination which was carried out in the year ended March 31, 2018. As a result, thecorresponding figures of the year ended March 31, 2018 reflect the finalization of the provisional accounting
treatment.
For the year ended March 31, 2019

（Unit: Millions of yen）
Amountrecorded on
Adjustments
consolidated(Note）
financialstatements

Reportable Segments

Revenue
Revenue from sales
to external customers
Segment Profit(Adjusted operating
profit)（Adjustment item）
Amortization of
intangible assets
acquired throughbusiness combinations
Non-recurring profit orloss

Cardiac and
VascularCompany

GeneralHospitalCompany

Blood
Management
Company

328,500

165,766

104,984599,251230

599,481

80,913

26,82915,673

123,417(1,288)122,128(6,642)－(8,376)(15,018)384(14,633)

Total

(857)

Operating profit

106,637

Finance income

2,111

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
method(5,876)Pre-tax profit

102,709

Other items
Depreciation andamortization
Net increase of
tangible andintangible noncurrent
assets(162)

20,206

9,711

13,47943,398636

44,03535,01812,325

7,422

54,767

6,078

60,845－14 －(Note）１．Amounts in ‘Adjustments’ are as follows:(1) ¥230 million adjustment to revenue from sales to external customers is mainly proceeds from outward
temporary staffing that is not attributable to reportable segments.
(2) ¥(1,288) million adjustment to segment profit consists of ¥(1,238) million for “inventories” and ¥(49)
million for “others”.
２．¥(857) million for Non-recurring profit or loss mainly includes ¥1,567 million for insurance revenue about
hurricane in Puerto Rico and ¥(2,040) million for the change in fair value of contingent consideration related toacquisition of Sequent Medical, Inc.,.
３．Depreciation and amortization includes amortization of intangible assets acquired through businesscombinations.

〈Material subsequent events〉
The Company conducted a stock split effectively on April 1, 2019, according to the resolution of the Board of Directors’
meeting on February 7, 2019.
Details of the stock split are as follows:
1. Purpose of stock split
The stock split will be conducted with the aim of increasing the liquidity of the Company’s stock and expanding its
investor base by reducing the price of share-trading units.
2. Method of the stock split
Each share of common stock held by shareholders recorded on the register of shareholders as of March 31, 2019, wassplit into 2 shares.
3. Increase in the number of shares due to the stock split
Common stock 379,760,520 shares－

15 －