TERUMO CORPORATION
1st Quarter Financial Results for FYE/ Mar.2007

July 24, 2006

Financial Highlights(billions of JPY)
Jun. 2005

Jun.2006

Net Sales

58.7

64.3

Gross Profit

31.9 (54.3%) 35.9 (55.7%) 12.6%

SGA Expenses

19.8 (33.7%) 22.4 (34.8%) 13.1%

Operating Income

12.0 (20.6%) 13.5 (20.9%) 11.8%

Ordinary Income

12.3 (21.0%) 13.5 (20.9%)
8.0
7.7

Net Income

Average exchange rates 1US$ = 108 JPY
1EUR = 135 JPY

115 JPY
144 JPY

Growth

9.5%

9.1%
4.8%

Net Sales by Segment(billions of yen)
9.5％

58.7

64.3

8.9+2.4

11.3

11.6
6.8+3.3

14.9+0.1

6.9

31.4

-0.2

31.2

Jun 2005

Jun 2006

Cardiovascularsystems(+27.2%)Catheter Systems(+28.4%)Home Health Care(+0.5%)
General hospital(-0.5%)

Net Sales by Region(billions of yen)

58.7
4.8
8.7
9.4

9.5％

+5.6

64.3
5.6
11.8
11.5

35.8

35.4

Jun.2005

Jun.2006

Total+9.5% (+7.1%)

Asia+15.5% (+ 8.7%)

Americas +35.7% (+29.4%)
Europe+22.5% (+16.4%)

Japan-1.0%

Outside of Japan total+26%(+19.7%)

Exclude ForEx impact

Variance Analysis of Gross Margin
Improvement +1.4pｔ (54.3%⇒55.7%)
Positives+1.8pｔImproved product mix
Economy of scale (Production increase)+1.7ptNegatives-0.4pｔ-0. 4pt

Price decline+0.1ptSGA Expenses
19.8
3.4
2.0
1.8
6.7

+2.6+0.4
+0.2
+0.1

+1.1

(billions of yen)

22.4

R&D

3.8+10.2%

2.2
1.9+12.4%+5.7%

7.8+16.3%

Sales & Maketing
Logistics
PersonnelOthers

5.9
Jun.2005+0.8

6.7
Jun.2006+13.7%

Mar. 2007 Estimate(billions of JPY)

Sep. 2006

Mar. 2007Net Sales

127.8

267.0

Operating Income

26.5

54.7

(20.7%)(20.5%)

26.5

54.2

(20.7%)(20.3%)

16.3

33.7

Ordinary Income
Net Income

Exchange rates
1US$ = 110 JPY
1Euro= 135JPYAbout Terumo's Product Development

Four Directions for GrowthNew
treatments

Fusion of drug
and device-DuraHeart-Anaconda-MicroVention Coils

Preventive
medicineendeavors

Terumo- Pre-filled syringes- Blood glucose monitors- AmigrandSystemizationand services- Blood pressure monitors-Training program - Solution pack

To support growth in the four directions

Terumo’s Bio Access Technology<Bio Access Technology>
Precisionplastic
processing

Metalworking
Micropolishing¾Injection needle¾Syringes¾Guidewires¾Catheters¾Introducer kits

"People-friendly"
concepts ofdevelopment¾No pain¾Easy to use

Coatingtechnology

Drug anddevice¾No mistake¾Prompt action¾Patient QOL¾Medical economy

PolymertechnologyNewtreatments

Preventive
medicine

Systemization& service

Technological Evolution(1)

Bio Access & Pharmaceutical Know-how

PharmaceuticalPharmaceutical Know-how
Know-how¾
Enhancement of¾Enhancementofnewnewtreatments
treatments¾Fusion of¾Fusionofdrugdrugand
anddevicedevice

BioBio Access
Access Technology
Technology

Peripheral Intravenous Nutrient
Solution"Amigrand"
Pharmaceutical Know-how

Amigrand¾All-in-one design & stability¾Matching with the container¾Production technology

Bio
BioAccessAccessTechnology
Technology

Launched in June 2006
(Sales target 2006: 1 billion yen)Nanocapsule Technology
Anticancer liposome

Alliance withpharmaceutical companies

YakultYakultHonsha
HonshaCo.Ltd.
Co.Ltd.
totoimplement
implementPhase
PhaseIIininUSA
USA

Terumo's Bio Access &Pharmaceutical Know-how

Artificial red blood cell (NRC)¾PEG coating technology¾Liposome formulation technology¾Particle sizing technology
Japan:Japan:Clinical
Clinicaltrials
trialstotostart
startininFY
FY20072007

Drug Eluting Stent
Engineering Platform from Biosensors¾New¾Newcompoundcompound"BiolimusA9""BiolimusA9"¾Biodegradable¾Biodegradablepolymer
polymer¾Stent¾Stentdesign
designTerumo's Bio Access Technology& Pharmaceutical Know-how¾Coating¾Coating&&polymer
polymertechnology
technology¾Micro¾Microprocessing
processingtechnology
technology¾Pharmaceutical¾Pharmaceuticalproduction
productiontechnology
technology

Toward the developmentof next generation DESCurrent Status of DES “Nobori”
Europe:Europe:¾In¾Inthetheprocessprocessof
ofapplication
applicationto
toobtainobtainthe
theCE
CEMarkMark→→CE
CEMarkMarkexpected
expectedwithin
withinFiscal
Fiscal2006
2006¾In¾Inclinicalclinicaltrials
trialsfor
forsafety
safetyandandefficacy
efficacydata
data→→Implemented
Implementedfor
for155155outoutof
of360
360cases
cases(As(AsofofJune
June30)30)→→Implantations
Implantationsscheduledscheduledto
toend
endby
bythe
thefallfallofof20062006¾Interim¾Interimreportreportat
atTCT
TCTin
inOctober
October2006
2006

Effects of DESon vascular endothelial cells
Company A Company B Terumo
Bare metal<Comparison Data>¾Iliac artery of rabbit.
¾28days after implantation.

Source:EuroPCR06
Presented by Dr. Virmani

DES

Bare metal DES

DESBare metal (Nobori)Technological Evolution(2)

Bio Access & Medical Engineering

Medical
Medical Engineering
Engineering¾
Enhancement of¾Enhancement
ofnew
newtreatments
treatments¾Fusion of¾Fusionofdrugdrugand
anddevicedeviceBio
Bio Access
AccessTechnologyTechnology

Left ventricular assist system
Medical
Medical Engineering
Engineering¾Precision control¾Measurement of vital reaction¾Downsizing

Bio
Bio Access
AccessTechnologyTechnology

The world's firstrotary blood pump with amagnetically levitatedimpeller(Terumo Estimates)

Enhancement of QOL

Current Status of “DuraHeart”

Europe:Europe:¾In¾Inclinicalclinicaltrials
trialsfor
foradditional
additionaldatadata¾CE¾CEMark
Markexpected
expectedin
inthe
the4th4thquarter,quarter,FY2006
FY2006USA:USA:¾Application¾Applicationplannedplannedin
inFY2007
FY2007

Combination of Diabetes Care Business“Medisafe Mini”
Blood Glucose
Monitoring Device

Bio
BioAccessAccessTechnology
Technology“Finetouch”
Lancing Device for Blood
Glucose Monitoring

Medical
MedicalEngineering
Engineering“NanoPass”
The thinnest needle in the world(Terumo Estimates)

Development Synergy with Olympus
テルモが強いｵﾘﾝﾊﾟｽが強い

経皮的ｱｸｾｽ

技術の軸Imaging
ﾃﾞｨｽﾎﾟ

生物評価 ｲﾒｰｼﾞﾝｸﾞ ｴﾈﾙｷﾞｰ 経消化管 生体埋込
ｱｸｾｽ
材料

疾病の軸

循環器疾患

消化器疾患
（またはがん）Bio AccessTechnology
骨疾患（整形領域)

Medical EngineeringTopic(1)MicroVention Coils
coated coils

Acquisition of MicroVention, Inc.
¾Full-fledged¾Full-fledgedentry
entryinto
intothethecerebral
cerebralendovascular
endovasculartreatment
treatment¾Strengthen¾Strengthenpresencepresenceininthe
theU.S.
U.S.
¾Cutting-edge¾Cutting-edgeswellingswellingcoatedcoatedcoilscoils

bare coils
Europe, USA and Asia:¾Both bare coils and coated coils in sales

Impacts upon Terumo¾Expansion of the cerebral delivery-related devices¾Acquisition of new technological seeds from USAJapan:¾Started sales of bare coils in June.

Topic(2)Successful Start ofDirect Marketing & Sales in the U.S.

¾Focus on succeeding accounts- Glidewire- Introducer kit¾Expanding product pipeline

The global standard guidewire"Glidewire"Interventional Business in the U.S.
¾Both sales and profit to increase in FY2006

Directions of Terumo's Product Development
Realizing
Realizingthe
theVision
VisionFour
FourDirections
DirectionsforforGrowth
GrowthSynergy
SynergyEffects
Effects ¾New treatment
Bio
BioaccessaccessTechnology
Technology

Toward¾Terumo’s¾Drug & device
unique technology¾M&A¾Alliances¾Preventive medicine

people-friendly
medical treatments¾Systemization & services