3rd Quarter Financial Results for FYE/Mar 2009

Terumo Corporation
29, January 2009

-1-Financial Results(Unit: Billion yen)

Net Sales

Q3 Total FYE/Mar. 2008

Q3 Total FYE/Mar. 2009

Rate ofchange

231.4

231.50%Gross profit(%)

127.5 (55.1%) 123.4 (53.3%)-3%

S.G.A Expenses(%)

75.1 (32.4%)

77.9 (33.6%)

4%

Operating Income (%) 52.4 (22.7%)

45.5 (19.7%)-13%

Ordinary Income (%) 52.9 (22.9%)

42.7 (18.5%)-19%

Net Income

34.8

28.7

-17%

1 US$ 117 yen
1EUR 163 yen

103 yen
151 yenAverage exchange rate-2-12.3% yen appreciation
7.2% yen appreciation

Net Sales (by Region)
Double-digit growth continuing, excluding impact of foreign exchange(Unit: Billion yen)
+ 1%

Outside Japan total+1.0-1%(+ 12% excluding impact of foreign exchange)
Ratio of sales outside Japan to total sales

Q3 Total

Q3 TotalFYE Mar.
2008

FYE Mar.
2009

47%Æ46%123.2 124.2+1%-3%-0%( + 12%)+0.5( + 11%)-1.4( + 15 %)
- 0.1

42.3

42.8

43.5

42.1
22.5

Japan-3-EuropeAmericas

22.4

Asia

Net Sales (by Product Group)
Cardiac & Vascular and Blood transfusion products enjoyed growth(Unit: Billion yen)

-2%+3%(0%)( + 12 % )

‐ 2.4

115.5

93.8

( + 12 % )( - 14 %)

+ 0.8

‐ 0.7

18.2
4.7-4-FYE Mar.
2009

- 15 %

96.2

Cardiac & Vascular

FYE Mar.
2008

+5%

17.4

GeneralHospital

Q3 Total() :Excluding the impact offoreign exchange

+ 2.4

113.1

Q3 Total

Bloodtransfusion

4.0

Consumer
Healthcare

S.G.A Expenses
Strengthening sales, management and development,with an increase in depreciation of goodwill(Unit: Billion yen)+ 2.8
S.G.A Expenses ratio
1.2 point increase
75.1

77.9
Q3 Total FYE Q3 Total FYE

Mar.2008 Mar.2009 Change-5-32.4%

33.6%

Q3 TotalFYE Mar. 2008

Q3 TotalFYE Mar. 2009

Personal
27.5
Logistics
6.8
Sales promotion
7.6
R&D
11.8
Depreciation Goodwill 0.6
Others
20.8
Total
75.1

28.4
7.08.2
12.2
1.5
20.6
77.9%

+0.9 3.4%+0.2 3.0%+0.6 8.1%+0.4 3.4%+0.9 173.4%-0.2 -1.1%+2.8 3.8%

Q3 Total Net Sales & Operating Income Trends(Unit: Billion yen)

[Net Sales]
Foreign Exchange+７％

Hepaflush
Revised NHI price

231.4

Q3 TotalFYE Mar.
2008-6-[Operating Income]Half Year-9.2
Q3-9.4-18.6

Foreign Exchange
Hepaflush
Revised NHI price
Changing the accounting &tax system

231.5
52.4

Q3 TotalFYE Mar.
2009

Q3 TotalFYE Mar.
2008

45.5

Q3 TotalFYE Mar.
2009

Half Year- 5.5
Q3-5.3-10.8

Forecast(Unit: Billion yen)

FYE/Mar 2009

FYE/Mar. 2009

FYE/Mar. 2009

Q3 Total Results

Revised Fcst.

Original Fcst.

231.5

300.0

310.0

Operating Income (%) 45.5 (19.7%)

53.0 (17.7%)

62.0 (20.0%)

Ordinary Income (%) 42.7 (18.5%)

48.5 (16.2%)

61.0 (19.7%)

32.5

40.0

Net Sales

Net Income
Average exchange rate

28.7
1 US$ 103 yen
1EUR 151 yen

99 yen
141 yenAssumed Q4 rate
1 US$ 87 yen
1EUR 113 yen-7-

101 yen
144 yenAssumed 2nd half rate
1 US$ 95 yen
1EUR 125 yen

Annual sales/operating income trends(Unit: Billion yen)

[Net Sales]
Foreign Exchange+６％

Hepaflush
Revised NHI price306.4

Q4 Total
FYE 2008-8-300.0

Releasedvalue atthis time

[Operating Income]Q3 Total- 18.6Q4- 9.6- 28.266.9

Q4 Total
FYE 2008

Foreign Exchange
Hepaflush
Revised NHI price
Changing the accounting &tax system

53.0

Releasedvalue atthis time

Q3 Total-10.8
Q4- 6.9- 17.7

Quarterly Changes(Unit: Billion yen)FYE Mar. 2009

FYE Mar. 2008

100

80.6

74.9

80

77.8

79.2

74.5

16.2

15.2

14.1

68.5

60
40
20

18.9

14.5

0
Q3

Q4

Q1

Net Sales

-9-Q2

Q3

Operating Income

7.5
Forecast

Q4

Topics◆Impact of the financial
and economic crisisand our future response-10-

Overall Impact on Healthcare Market◆Private hospitals, distributors, insurance companies,
and other businesses are ailing.
◆Higher unemployment rate
→ Increasing number of uninsured persons,especially in the U.S.
◆Temporary suspension of large-scale investments to construct
and expand medical institution in Asia and emerging countries-11-Outside of Japan : Some Impact on Sales

・Suspension of purchaseof large ME equipment

・Postponement of purchaseof infusion pumps
and other ME equipment
・Inventory reduction
at B2B companiesTransfusion

GeneralhospitalCardiac & Vascular-12-

Japan : Impact is Still Limited

Transfusion

ConsumerHealthcare

・Suspension of purchasesof ME equipment

Cardiac & Vascular・Group purchase・NetworkingConsolidations andgrouping of hospitals tostrengthen their financial will
be accelerated, potentiallyhaving impact on our business.
-13-

General Hospital

Accelerating Projects
for A Stronger Corporate Constitution◆Improvement of gross profit margins
・Review of investments

・Direct marketing

・Increase of production outside of Japan and local procurement
・Decrease the number of product items
・Continuous sales price increase◆ More efficient S.G.A. control
・Distribution cost reduction
・Strict selection of development investment
・Improvement of sales productivity

Aggressively invest in further quality improvements
and production transfer to Asia, etc.
-14-

Healthcare Demand Still Strong and Unchanged◆Stronger need for improved economic efficiency◆Maintaining basic structure of growth strategy

Minimally Invasive
Infection Control
SafetyHealthcare Economy

Better Efficiency-15-

Economic Effect on Minimally Invasive Therapy

Hospitalstays(days)

Conventional
treatment

Hospitalstays(days)

PTCA catheter
treatment

5Coronary artery
bypass graftoperations(CABG)

30

Laparoscopic
Cholecystectomy

6Laparotomy3

Laparotomy

Medical device/treatment

Endoscopic resection oftumor on gastric mucous
membrane

Cost reduction

Patients
per year

Cost reduction
per year(billion yen)

2,266,000 yen(70%)

86,000194.8

28254,000 yen(73%)

100,000

25.4

29361,000 yen
(89%)

7,000

2.5

per patient(%)

Source: "A Turning Point of the Japanese Healthcare System - The Increasing Role of Medical Technology Innovation" 1999; ACCJ, Bain & Company, etc.

-16-Economic Effects by Infection Control◆About 1.1 billion yen excess medical costs spent at big hospitals
in Japan (1,000 beds) due to the complications of infections.
Among them, 30% can be prevented through reinforcement of countermeasures.
Excess costs
per case

Number of cases
per year

Excess costs
per year

Surgical site infection

1.21 million yen

400 cases

484 million yen

Internal medicine
hospitalization
W/ MRSA infection
W/o MRSA infection

2.31 million yen

100 cases

231 million yen

1 million yen

400 cases

400 million yen(Annual cost comparison)

Satoshi Kimura,2004 "Hospital Infection Prevention and Cost Benefit"; from "Clinical Medicine and Research"-17-Strategic Initiative :Product Lineup Expansion in 3Q◆ Improved lineup of minimally invasive therapy products‐ PTCA balloon catheter, "Hiryu": sales areas expanded to Europe and Asia
‐ Improved lineup of delivery systems for neuro intervention coils◆Expansion of products contributing to safety and efficiency‐ Japan : Apheresis equipment, "TERUSYS"‐ Europe/America: ME equipment such as sterile tube connection devices‐ Europe/America: I.V. catheters with safety function

Surshield SURFLOⅡ-18-(safety I.V. catheter)

TSCD-Ⅱ(sterile connection devices)Summary◆Considering the economic crisis as an opportunity,
strengthen company constitution◆Planning next fiscal year
while grasping market trends•Needs for the healthcare economy getting stronger•Further promoting the basic strategiesof the mid-term plan-19-

Reference-20-Third Quarter Operating income trend(Unit: Billion yen)Half Year

Q3

Q3 Total

- 1.2
- 2.0
- 1.3
- 1.0
- 5.5

- 3.2
- 1.2
- 0.4
- 0.5
- 5.3

- 4.4
- 3.2
- 1.7
- 1.5
- 10.8• Other Factor+ 3.5+ 0.4+ 3.9• Difference- 2.0- 4.9- 6.9

•
••
•
•

-21-

Foreign Exchange
Revised NHI priceHepaflush
Changing the accounting SystemTotal

Annual operating income trend(Unit: Billion yen)

Q3 Total

Q4Annual• Foreign Exchange

- 4.4

- 2.8

- 7.2

• Revised NHI Price

- 3.2

- 1.5

- 4.7

• Hepaflush

- 1.7

- 0.3

- 2.0

• Output cut of production

-

- 1.8

- 1.8

• Changing the accounting System

- 1.5

- 0.5

- 2.0

• Total- 10.8- 6.9- 17.7• Other Factor+ 3.9- 0.1+ 3.8• Difference

- 6.9

- 7.0

- 13.9-22-IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp

This document contains forward-looking statements that reflect
management’s current views with respect to certain future events andfinancial performance. Actual results may differ materially from thoseprojected or implied in the forward-looking statements and from historical
trends. Furthermore, certain forward-looking statements are based uponassumptions of future events that may not prove to be accurate. Factorsthat could cause actual results to differ materially from those projected orimplied in any forward-looking statements include, but are not limited to,changes in overall economic conditions, fluctuations of foreign exchange
rates, and intensifying price competition in the markets for our products.

-23-