Financial Results for the Fiscal Year Ended March 31, 2015
May 08, 2015
Exchange where listed: TSE

Name of listed company: TERUMO CORPORATION(URL http://www.terumo.com/): 4543: Yutaro Shintaku, President and Representative Director: 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 2015
(From April 1, 2014 to March 31, 2015)(1) Consolidated operating results(Notes: The amounts shown below ignore values of less than a million yen)

Net sales

Operating income(Millions of yen)

Year ended March, 2015
Year ended March, 2014
(Notes) Comprehensive income:%(Millions of yen)%

67,45665,288Net income per share

Net income per share,
fully diluted(Yen)(Millions of yen)%

(Millions of yen)

70,730 10.9
3.3
63,802 24.2
22.7
March 2014: 71,166 million yen (‐24.1%)

489,506
467,359

4.7
16.2
March 2015: 88,986 million yen (25.0%)

Net income

Ordinary income

Net income perstockholders' equity

(Yen)

%

38,470 12.8
34,096 (27.5)

Operating income
per Net sales

Ordinary income
per total assets
%

%

%

99.12
7.2
101.33
Year ended March, 2015
7.8
89.78
89.78
7.3
Year ended March, 2014
8.0
(Notes) Equity in earnings of affiliates: March 2015: ‐65 million yen March 2014: 132 million yen
Terumo Corporation excuted a two-for-one stock split on its common shares effective April 1, 2014.
Net income per share and Net income per share, fully diluted have been adjusted retrospectively to reflect the effect of the stock split.

13.8
14.0

(2) Consolidated financial position
Net assets

Total assets(Millions of yen)

Net assets per
share

Equity ratio
%

(Yen)

57.8
573,523
992,073
As of March 31, 2015
59.6
496,245832,814
As of March 31, 2014
(Notes) Shareholders' equity: March 31, 2015: 573,444 million yen March 31, 2014: 496,225 million yen
Terumo Corporation excuted a two-for-one stock split on its common shares effective April 1, 2014.
N t assett per shareNethhhas beenbadjusted
dj t d retrospectivelytti l tto reflect
fl t ththe effect
ff t off th
the stockt k split.
lit(Millions of yen)

1,513.73
1,306.72(3) Consolidated statements of cash flows
Cash flows fromoperating activities
Year ended March, 2015
Year ended March, 2014

Cash flows frominvesting activities

Cash and cash
equivalents, end of
periodCash flows fromfinancing activities(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

73,11096,259(40,421)(52,744)

44,121(31,785)

176,662
92,498

2. Dividends
Cash dividends per share
2nd quarter
4th quarter3rd quarter

1st quarter
Year ended March, 2014
Year ended March, 2015
Year ending March, 2016 (forecast)

total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

－
－
－

29.00
14.50
16.00

－
－
－

29.00
16.00
16.00

58.00
30.50
32.00

(Notes) Terumo Corporation excuted a two-for-one stock split on its common shares effective April 1, 2014.
Cash dividends per share for the year ending March, 2015 and the year ending March, 2016 (forecast) have reflected this stock split.

3. Consolidated Forecast for the Year Ending March 2016 (From April 1, 2015 to March 31, 2016)
Net sales(Millions of yen)

Operating income%(Millions of yen)

Ordinary income%(Millions of yen)

31,000250,000
7.2(6.0)
70,000520,000
Year ending March, 2016
6.2
3.8
(Notes) Assumed exchange rate for fiscal year ending March, 2016: USD1=JPY120, EUR1=JPY130

Half year ending September, 2015

29,50067,000Net income%(13.3)(5.3)

Net income per share
%

(Yen)

17,500 (20.0)
39,5002.7

46.09
104.04(Millions of yen)

Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these areforecasts 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 not limited to, changes in economic conditions
surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.

14. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of March 31, 2015

AmountAmount(Assets)%

I Current assets

310,98537.3%
412,458

Cash and deposits

95,618

129,679

Noteｓ and accounts receivable-trade

101,520

104,944－

50,00060,03465,295

Securities
Marchandise and finished goods
Work in process

10,262

10,228Raw materials and supplies

23,66825,948Deferred tax assets

12,34013,949

Other

8,933

13,871

Allowance for doubtful accounts(1,394)(1,458)

41.6

II Noncurrent assets

520,332

62.5

575,84258.0

1. Property, plant and equipment

157,755

18.9

178,496

18.0

Buildings and structures

54,21560,783

Machinery, equipment and vehicles

43,91645,616

Land

21,75722,023406

895

Lease assets
Construction in progress

27,97439,029

Other

9,483

10,147

2. Intangible assets

304,75636.7

331,990

Goodwill

154,161

166,990

Customer relationships

93,968103,217

Other

56,626

61,781

3. Investments and other assets

57,8206.9

65,355Investment securities

37,954

Deferred tax assets

5,323

259

Retirement benefit asset

2,573

6,786

Other

11,96912,847

III Deferred assets
Total assets

2

33.4

6.6

45,461

1,496

0.2

3,772

0.4

832,814100.0

992,073

100.0

(Millions of yen)
As of March 31, 2014

As of March 31, 2015

AmountAmount(Liabilities)
I%

Current liabilities

160,936

Notes and accounts payable-trade38,147

Short-term debt
Current portion of long-term debt
Lease obligations%
129,947

364

4,652

5,417

225

208

40,000－

Income taxes payable

18,401

19,714

Deferred tax liabilities

94

105

Provision for bonuses

4,849

5,560

109

142

Notes and accounts payable-facilities

8,425

8,667

Other

45,76951,282

Noncurrent liabilities

175,632

Bonds payable

40,00040,000－100,233

Long-term debt

76,76979,141

Lease obligations

299

278

47,79550,013

Convertible bond-type bonds with subscription rights to shares

Deferred tax liabilities
Provision for directors' retirement benefits

13.1

38,484260

Current portion of bonds payable

Provision for directors' bonuses

II

19.3

21.1

288,602

66

66

Retirement benefit liability

3,124

7,020

Asset retirement obligations

220

233

29.1

Other

7,354

Total liabilities

336,568

40.4

418,550

42.2

IShareholders' equity

444,39653.4

471,102

47.5

Capital stock

38,716

38,716

Capital surplus

52,103

52,103Retained earnings

353,600

383,317

Treasury stockII

11,615(24)

Accumulated other comprehensive income

51,828Valuation difference on available-for-sale securities

11,269Deferred gains or losses on hedges(3,035)
6.2

102,341
16,910(2)－Foreign currency translation adjustments

43,37789,043

Accumulated adjustments for retirement benefit(2,816)

III Stock subscription rights

10.3(3,611)

20

0.0

78

0.0

Total net assets

496,24559.6

573,523

57.8

Total liabilities, net assets

832,814100.0

992,073100.03

(2) Consolidated Statements of Income(Millions of yen)
For the year ended

For the year ended

March 31, 2014

March 31, 2015

AmountAmount%%I

Net sales

467,359

100.0

489,506

II

Cost of sales

225,34848.2

233,480

47.7

Gross profit

242,01151.8

256,025

52.3

176,72237.8

188,569

38.5

65,28814.0

67,456

13.8

8,829

1.8

III Selling, general and administrative expenses
Operating income

100.0

IV Non-operating income
Interest income

459

566

Dividends income

338

365

Royalty income

116

200

3,250

6,598

132

－

Foreign exchange gains
Equity in earnings of affiliates
Other
V

1,203

5,501

1.2

1,098

Non-operating expenses
Interest expenses

1,542

1,254

Sales discounts

661

417

Equity in losses of affiliates－

65

Loss on disposal of inventories

836

267

Structural reform-related expenses

797

－

Other

3,947

Ordinary income

6,988

1.5

63,802

13.7

2,752

5,555

1.1

70,730

14.5

3,282

0.7

9,965

2.1

64,046

13.1

25,5755.2
7.9

VI Extraordinary gains
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on transfer of businesses
Gain on adjustment of account payable
Settlement received

743

692

－

559

666

－

－

2,030

6,000

7,410

1.5

－

VII Extraordinary losses
Loss on disposal of noncurrent assets
Impairment loss

995

1,160

15,351

1,625

Loss on liquidation of subsidiaries and affiliates－

597

Restructuring loss

－

5,607

Directors' retirement benefits

33－

Loss on liquidation of businesses

740

974

Loss on information system failure

1,185

Income before income taxes and minority interests
Income taxes-current

26,637

Income taxes-deferred(7,856)

Income before minority interests
Minority interests in income
Net income

418,305

3.9

52,907

11.3－

29,954
18,7804.0(4,378)34,126

7.3

38,470

30

0.0

－

－

34,096

7.3

38,4707.9

(3) Consolidated Statements of Comprehensive Income
For the year ended
March 31, 2014
AmountI Income before minority interests
II Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Comprehensive income
Attributable to:Shareholders of Terumo Corporation
Minority interests

34,12638,4703,811(2)33,234－5,640
245,665(795)(3)

37,03971,166
71,179(13)

5(Millions of yen)
For the year ended
March 31, 2015
Amount1

50,51588,98688,986－

(4) Statement of changes in net assets(Millions of yen)
Shareholders' equity
Year ended March 2014
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

38,71652,103

329,188(9)38,71652,103

329,188(9)

Shareholders'equity total
419,999－
419,999(14)(9,683)34,096
(14)

(14)
(24)

24,397444,396

Capital stock

Capital surplus

Retained earnings

Treasury stock(9,683)34,096－
38,716－52,103

24,412353,600

Accumulated other comprehensive income

Year ended March 2014
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Valuation difference
on available-for-sale securities
7,458

Deferred gains orlosses on hedges

7,458

3,811
3,811
11,269－Foreign currencytranslation adjustments
10,099－10,099

(2)
(2)
(2)

Remeasurements ofdefined benefit plans

Accumulated othercomprehensive income total－
17,557

Subscription
rights toshares－17,557－－33,27833,27843,377(2,816)(2,816)(2,816)34,27034,27051,82820
20
20

Remeasurements of
Accumulated otherdefined benefit planscomprehensive income total(2,816)
51,828Subscription
rights toshares20

Minority
interests
352
352

437,909－437,909

(352)
(352)
－

(9,683)34,096(14)
33,93858,335496,245(Millions of yen)
Shareholders' equity
Year ended March 2015
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Capital stock

Capital surplus

38,71652,10338,71652,103Retained earnings(24)

Shareholders'equity total
444,396
2,258
446,655(3,010)(11,012)38,470(3,010)(3,010)(3,035)24,447471,102

Treasury stock

353,600
2,258
355,859(24)(11,012)38,470－38,716－52,10327,458383,317

Accumulated other comprehensive income
Year ended March 2015
Beginning of period
Cumulative effect of changes in accounting policies
Beginning of period as restated
Changes during this fiscal year
Dividends from surplus
Net income
Purchase of treasury stock
Changes of items other than shareholders' equity (net)Total changes during this fiscal year
Ending of period

Valuation difference
on available-for-sale securities
11,26911,2695,640
5,640
16,910

Deferred gains orlosses on hedges(2)

Foreign currencytranslation adjustments
43,377(2)

43,3772
2－45,66545,66589,043

6(2,816)

(795)
(795)
(3,611)

51,82850,51350,513102,341

Net assets
total

Net assets
total

20

496,2452,258
498,504

58
58
78(11,012)38,470(3,010)50,57175,019573,523

(5) Consolidated statements of cash flows

I(Millions of yen)

For the year ended

For the year ended

March 31, 2014

March 31, 2015

AmountAmountNet cash provided by (used in) operating activities
Income before income taxes

52,90764,046

Depreciation and amortization

30,32230,363

Impairment loss

15,351

1,625

Amortization of goodwill

9,559

10,329(132)

65

Equity in (earnings) losses of affiliates
Increase(decrease) in provision for retirement benefits(1,247)－

Decrease (increase) in ｎet defined benefit asset(1,899)

1,135

Increase(decrease) in ｎet defined benefit liability

1,506

(215)

Increase(decrease) in provision for directors' retirement benefits

(132)

－

73

14

Increase(decrease) in allowance for doubtful accounts
Increase(decrease) in provision for directors' bonuses
Interest and dividends income

0

32

(798)

(932)

Interest expenses

1,542

1,254

Foreign exchange losses (gains)(3,210)(4,483)－797

Structural reform-related expenses
Gain on transfer of business
Gain on adjustment of account payable
Settlement received

(666)

－

－

(2,030)(6,000)－Loss (gain) on sales of noncurrent assets

(743)

(692)

Loss (gain ) on disposal of noncurrent assets

995

1,160

Loss (gain) on sales of investment securities

－

(559)

Loss on liquidation of subsidiaries and affiliates－

597

Restructuring loss

－

5,607

Directors' retirement benefits

33－

Loss on liquidation of businesses

740

974

Loss on system fault

1,185

－

Payments cash contribution of securities to retirement benefit trust(3,600)－Decrease (increase) in notes and accounts receivable-trade

(506)

1,317

Decrease (increase) in inventories(3,618)(1,241)

Increase (decrease) in trade payable(1,096)(801)

Other, net

4,849(2,242)

95,411

106,121

SubtotalInterest and dividends income received

1,020

1,165

Interest expenses paid

(1,522)(1,282)

Income taxes paid

(2,875)(31,001)－(382)

Payments for structural reform-related expenses
Settlement package received
Payments for loss on liquidation of subsidiaries
Payments for restructuring loss

6,000

－

－

(565)

－

(515)

Payments for directors' retirement benefits

(33)

－

Payments for loss on liquidation of business

－

(179)

Payments for information system failure

(943)

(250)

Payments for environmental expenses

(798)

－

96,25973,110

Payments into time deposits(767)(1,201)

Proceeds from withdrawal of time deposits

1,182

1,505

Purchase of property, plant and equipment(39,933)(37,342)

Net cash provided by (used in) operating activities
II Net cash provided by (used in) investment activities

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Paymentｓ for ｐerformance to asset retirement obligations

953

1,168

(4,960)(3,683)(420)－(1,823)(429)

Proceeds from sales of investment securities

－

1,434

Collection of lease deposits－

459(1,828)(54)

Purchase of investment securities

Payments for acquisition of business
Purchase of investments in subsidiaries resulting in change in scope of consolidation
Purchase of stocks of subsidiaries

(374)

－

(1,519)－Proceeds from transfer of businesses

1,815

－

Other, net(5,069)(2,276)(52,744)(40,421)

Net cash provided by (used in) investment activities
III Net cash provided by (used in) finacing activities
Increase in short-term debt

253

257

Decrease in short-term debt

(49)

(202)

(18,000)－

Proceeds from long-term debt

Net increase (decrease) in short-term debt

－

3,018

Repaymentｓ of long-term debt

(4,006)(4,963)－

100,250－(40,000)

Proceeds from issuance of bonds with subscription rights to shares
Redemption of bonds
Repayments of financial lease obligations

(284)

(214)

Purchase of treasury stock(14)(3,010)(9,683)(11,012)(31,785)

44,121

Cash dividends paid
Net cash provided by (used in) finacing activities
IV Effect of exchange rate changes on cash and cash equivalents

5,603

7,353

V Net increase(decrease) in cash and cash equivalents

17,332

84,164

VI Cash and cash equivalents at beginning of period

75,16592,498VII Cash and cash equivalents at end of period

92,498

176,6627

(6)Notes<Significant accounting policies in preparing the consolidated financial statements>
Changes in accounting policy(Adoption of Accounting Standard for Retirement Benefits)

Effective from the beginning of the fiscal year ending March 31, 2015, the Company and its consolidated domestic subsidiaries haveapplied the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012 (hereinafter, the “Statement No.
26”)) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, March 26, 2017 (hereinafter, the“Guidance No. 25”)), and the method of calculating retirement benefit obligations and service costs are revised, with the method of
attributing benefits to accounting periods changed from the straight‐line basis to the benefit formula basis, and the method ofdetermination of the discount rate changed to several weighted average discount rates which are set at the time of each expected
retirement benefit payment.
In accordance with the article 37 of the Statement No. 26, the effect of the change in calculation methods of retirement benefit
obligations and service costs arising from initial application has been recognized in “Retained earnings” at the beginning of the fiscal
year ending March 31, 2015.
As a result, “Retirement benefit assets” and “Retained earnings” have increased by ¥3,509 million and ¥2,258 million, respectively,
at the beginning of the fiscal year ending March 31, 2015. “Operating income”, “Ordinary income” and “Income before income taxes
and minority interests” have increased by ¥632 million, respectively, for the current year. And net assets per share, net income pershare and net income per share, fully diluted have increased by ¥5.96, ¥1.67 and ¥1.63, respectively.

8

5. Segment Information[Reportable Segments](1) Fiscal Year Ended March 31, 2014

(Millions of yen)
Reportable Segments
Cardiac &VascularCompany

GeneralHospitalCompany

Blood
Management
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

208,430

164,089

94,871

467,391

(32)

－

－

－

－

－

－

Sales total

208,430

164,089

94,871

467,391(32)

467,359

Segment income (Excl. Amortization)

43,97020,797

18,571

83,339(1,740)81,599Segment income (loss)

42,095

20,7974,135

67,028(1,740)65,288

21.1

12.7

19.6

17.8

－

17.5

226,599

171,316

337,934

735,850

96,963

832,814

Depreciation and amortization

8,554

8,660

12,24529,460861

30,322

Amortization of goodwill

1,874

－

7,684

9,559

－

9,559

Net increase of tangible andintangible noncurrent assets

22,00013,037

10,58345,621

1,002

46,624

Internal sales

Segment income(%)(Excl. Amortization)
Segment assets

467,359

Others:

Notes: 1. The (1,740) million yen adjustment to segment income is the sum of (129) million yen for inventories and (1,610)
million yen for others.
2. Adjustment to segment assets, which amounted to 96,963 million yen, mainly includes investments in"Cash anddeposit", "Investments securities", "Deferred tax assets" and assets of the Administrative Department.
3. Segment income is adjusted to be consistent with “Operating income” shown on the consolidated statements ofincome.
(2) Fiscal Year Ending March 31, 2015

(Millions of yen)
Reportable Segments
Cardiac &VascularCompany

GeneralHospitalCompany

Blood
Management
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

229,155

161,462

98,887

489,506

－

－

－

－

－

－

－

Sales total

229,155

161,462

98,887

489,506－

489,506

Segment income (Excl. Amortization)

47,496

20,83318,48086,811(1,676)

85,134

Segment income (loss)

45,625

20,833

2,673

69,132(1,676)67,456

20.7

12.9

18.7

17.7

－

17.4

241,401

196,842

382,438

820,683

171,389

992,073

Depreciation and amortization

7,450

8,584

12,93528,9701,392

30,363

Amortization of goodwill
Net increase of tangible andintangible noncurrent assets

1,870

－

8,458

10,329－10,32916,97812,24011,43440,653788

41,441

Internal sales

Segment income(%)(Excl. Amortization)
Segment assets

489,506

Others:

Notes: 1. The (1,676) million yen adjustment to segment income is the sum of (1,541) million yen for inventories and (134)
million yen for others.
2. Adjustment to segment assets, which amounted to 171,389 million yen, mainly includes investments in"Cash anddeposit", "Investments securities", "Deferred tax assets" and assets of the Administrative Department.
3. Segment income is adjusted to be consistent with “Operating income” shown on the quarterly consolidated
statements of income.
(Changes in the category of segments)
As a result of reclassification in performance management among overseas subsidiaries, “Harvest Technologies Corporation”
and “Harvest Technologies GmbH” have been transferred from “Cardiac & Vascular Company” to “Blood Management
Company” since October 1, 2014. This change caused an increase and decrease of 145 million yen in “Segment income” of“Cardiac & Vascular Company” and “Blood Management Company”, respectively, for the previous fiscal year.

(Changes in the name of segments)“Cardiac & Vascular Business”, “General Hospital Business” and “Blood Management Business” changed their names to“Cardiac & Vascular Company”, “General Hospital Company” and “Blood Management Company”, respectively, from the firstquarter of fiscal year ending March 31, 2015. This change is reflected retrospectively.
(Note) Main products belonging to each business segment
Sub-segments
Business segments
Interventional Systems

Cardiac & Vascular Company

Neurovascular

Neuro interventional coils, etc.

CV Systems

Oxygenerators, Cardio-pulmonary bypass
system, etc.

Vascular Graft

General Hospital Company

Main products
Angiographic catheters, PTCA balloon
catheters, Coronary stents

Artificial vascular grafts, Stent grafts

General Hospital Products

Syringes, Needles, Blood collection tubes,
Solution sets, I.V.catheters, Infusion pumps,
Syringe pumps, etc.

Pharmaceutical and Nutrition

I.V.solutions, Nutritious food, CAPD systems,
etc.

D&D

Prefilled syringes, Pain management systems
etc.

DM and Consumer Healthcare

Blood glucose monitoring systems, Digital
thermometers, Blood pressure monitors, etc.

－

Blood bags, Automated blood collection system,
Therapeutic apheresis system, Cell expansion
system, etc.

Blood Management Company

9

(Supplementary Information)[Geographic Segments](1) Fiscal year ended March 31, 2014

(Millions of yen)Japan

EuropeAmericas

Asia and others

Total

Sales

189,041

96,892110,972

70,452

467,359

Tangible noncurrent assets

105,400

10,712

17,722

23,919157,755(2) Fiscal year ended March 31, 2015

(Millions of yen)Japan

EuropeAmericas

Asia and others

Total

Sales

183,146

104,600

125,31076,448489,506

Tangible noncurrent assets

110,226

10,18025,68732,402

178,496[Impairment Loss on noncurrent assets](1) Fiscal year ended March 31, 2014

(Millions of yen)
Reportable Segments
Cardiac &VascularCompany

Impairment Loss

7,594

General HospitalCompany

Blood
Management
Company

3,454

1,965

Subtotal
13,014(2) Fiscal year ended March 31, 2015

Company

Total

2,336

15,351(Millions of yen)
Reportable Segments
Cardiac &VascularCompany

Impairment Loss

1,625

General HospitalCompany

Blood
Management
Company－－

SubtotalCompany

1,625

Total
－

1,625

[Goodwill](1) Fiscal year ended March 31, 2014

(Millions of yen)
Reportable Segments
Cardiac &VascularCompany

Goodwill

18,051

General HospitalCompany

Blood
Management
Company－

136,110

SubtotalCompany

154,161(2) Fiscal year ended March 31, 2015

Total
－

154,161(Millions of yen)
Reportable Segments
Cardiac &VascularCompany

Goodwill

17,648General HospitalCompany

Blood
Management
Company－

149,34210

Subtotal
166,990

Company

Total－

166,990