Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2015
November 5, 2014
Exchange where listed: TSE

Name of listed company: TERUMO CORPORATION(URL http://www.terumo.com/): 4543: Yutaro Shintaku, President and Representative Director: Masayuki Maruta, General Manager, Corporate Communication Dept.
: +81 / 3-6742-8550

Company code number
Representative:
Please address all communications toPhone

1. Consolidated Financial Highlights for the Six Months Ended September 30, 2014
(From April 1, 2014 to September 30, 2014)(1) Consolidated operating results(Notes: The amounts shown below ignore values of less than a million yen)

Net sales

Operating income(Millions of yen)

(Millions of yen)%

Net income

Ordinary income(Millions of yen)%

(Millions of yen)%

233,309
32,99034,039 15.1
Six months ended September, 2014
3.2
8.3
30,470226,028 17.8
29,568 22.1
Six months ended September, 2013
8.0
(Notes) Comprehensive income: September 2014: 43,173million yen (18.2%) September 2013: 36,540million yen (－%)%

21,879 12.4
19,458 34.0

Net income per share,
fully diluted

Net income per share(Yen)(Yen)

57.61
57.62
Six months ended September, 2014
51.24
51.24
Six months ended September, 2013
(Notes) 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.
(2) Consolidated financial position
Total assets

Equity ratio

Net assets(Millions of yen)

(Millions of yen)

Net assets per share%(Yen)

866,837
536,185
61.9
As of September 30, 2014
832,81459.6496,245
As of March 31, 2014
(Notes) Shareholders' equity: September 30, 2014: 536,141 million yen March 31, 2014: 496,225 million yenp
excuted a two-for-one stock split
p on its common shares effective April
p 1,, 2014.
Terumo Corporation
Net asset per share has been adjusted retrospectively to reflect the effect of the stock split.

1,411.84
1,306.72

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

1st quarter
Year ended March, 2014
Year ending March, 2015
Year ending March, 2015 (forecast)(Notes) Revise of dividends forecast : None

total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

－－

29.00
14.50

－

29.00

58.00

－

14.50

29.00

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, 2015 (forecast) have reflected this stock split.

3. Consolidated Forecast for the Year Ending March 2015 (From April 1, 2014 to March 31, 2015)
Net sales

Operating income

Net income
per share

Net income(Millions of yen)%

(Millions of yen)

%

(Yen)

62,000
488,00064,000
Year ending March, 2015
4.4
(2.0)
(Notes) Forecast for fiscal year ending March, 2015 which was announced on May 8, 2014 has been revised.
(Assumed exchange rate for fiscal year ending March, 2015: USD1=JPY100, EUR1=JPY140)(2.8)

33,500

(1.7)

88.22

(Millions of yen)%

(Millions of yen)

Ordinary income%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 actualresults may differ from those forecasts on projections due to various factors. Factors affecting to actual results include, but are not limited to, changes ineconomic 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 September 30, 2014

AmountAmount(Assets)%

I Current assets

310,98537.3%
322,345

Cash and deposits

95,618103,988

Noteｓ and accounts receivable-trade

101,520

98,636

Marchandise and finished goods

60,03464,501Work in process

10,262

11,214

Raw materials and supplies

23,66824,841

Deferred tax assets

12,34011,362

Other

8,933

9,214

Allowance for doubtful accounts(1,394)37.2(1,414)

II Noncurrent assets

520,332

62.5

542,151

62.5

1. Property, plant and equipment

157,755

18.9

169,236

19.5

Buildings and structures

54,21560,812

Machinery, equipment and vehicles

43,91644,563

Land

21,757

21,851

Lease assets
Construction in progress
Other

406

841

27,97431,5579,483

2. Intangible assets

304,756

9,611
36.7

312,732

Goodwill

154,161

158,186

Customer relationships

93,96896,977

Other

56,626

3. Investments and other assets

57,82057,5696.960,181

Investment securities

37,95442,050

Deferred tax assets

5,323

369

Retirement benefit asset

2,573

5,535

Other

11,96912,225

III Deferred assets
Total assets

236.1

6.9

1,496

0.2

2,340

0.3

832,814100.0

866,837

100.0

(Millions of yen)
As of March 31, 2014

As of September 30, 2014

AmountAmount(Liabilities)
I%

Current liabilities160,936

Notes and accounts payable-trade38,147

Short-term debt
Current portion of long-term debt
Lease obligations%
150,950

362

4,652

4,945

225

181

40,00040,000

Income taxes payable

18,401

9,974

Deferred tax liabilities

9456

Provision for bonuses

4,849

5,125

109

59

Notes and accounts payable-facilities

8,425

10,018

Other

45,76943,593

Noncurrent liabilities

175,632

Bonds payable

40,00040,000Long-term debt

76,76981,466

Lease obligations

21.1

179,701

299

304

47,79547,57766

66

Retirement benefit liability

3,124

4,041

Asset retirement obligations

220

225

7,354

6,018

Deferred tax liabilities
Provision for directors' retirement benefits

Other

17.4

36,633260

Current portion of bonds payable

Provision for directors' bonuses

II

19.3

20.7

Total liabilities

336,568

40.4

330,651

38.1

I

Shareholders' equity

444,39653.4

463,020

53.4

Capital stock

38,716

Capital surplus

52,103

52,103Retained earnings

353,600

372,233

Treasury stockII

38,716(24)

Accumulated other comprehensive income

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

11,269Deferred gains or losses on hedges

(32)
6.2

73,120(2)－Foreign currency translation adjustments

43,37762,040

Accumulated adjustments for retirement benefit(2,816)(2,881)

III Stock subscription rights

8.5

13,961

20

0.0

43

0.0

Total net assets

496,24559.6

536,185

61.9

Total liabilities, net assets

832,814100.0

866,837100.03

(2) Consolidated Statements of Income(Millions of yen)
For six months ended

For six months ended

September 30, 2013

September 30, 2014

AmountAmount%%I

Net sales

226,028100.0

233,309II

Cost of sales

108,88148.2

110,370

47.3

Gross profit

117,14651.8

122,93952.7

86,67638.3

89,94838.6

30,47013.5

32,990

14.1

3,659

1.6

III Selling, general and administrative expenses
Operating income

100.0

IV Non-operating income

V

Interest income

180

235

Dividends income

170

184

Royalty income

5395

Foreign exchange gains

659

2,467

Equity in earnings of affiliates

68－

Other

512

1,645

0.7

677

Non-operating expenses
Interest expenses

724

502

Sales discounts

314

339

Equity in losses of affiliates－5

Loss on disposal of inventories

73243

Other

1,435

Ordinary income

2,547

1.1

29,568

13.1

1,519

2,610

1.1

34,039

14.6

2,035

0.9

VI Extraordinary gains
Gain on sales of noncurrent assets

7

Gain on transfer of businesses

130299Gain on adjustment of account payable

－－
307

0.1

1,905

VII Extraordinary losses
Loss on disposal of noncurrent assets

151

397

Impairment loss

558

1,225

Loss on liquidation of subsidiaries and affiliates－

371

Directors' retirement benefits

33－

Loss on liquidation of business

873

Income before income taxes and minority interestsIncome taxes-current

9,284

Income taxes-deferred(514)

Income before minority interests
Minority interests in income
Net income

4

1,616

0.7

28,258

12.5

－

1,993

0.9

34,081

14.6

11,8588,769

3.9

12,201

5.2

19,488

8.6

343

21,879

9.4

30

0.0－

－

19,458

8.6

21,8799.4

(3) Consolidated Statements of Comprehensive Income
For six months ended
September 30, 2013
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
Adjustments for retirement benefit
Share of other comprehensive income of associates
accounted for using equity method
Comprehensive income
Attributable to:Shareholders of Terumo Corporation
Minority interests

19,48821,8792,572
1014,471－2,691
2
18,663(65)(3)

17,05136,54036,553(13)

5(Millions of yen)
For six months ended
September 30, 2014
Amount1

21,29343,17343,173－

(4)Notes<Significant accounting policies in preparing the consolidated financial statements>
Changes in accounting policy(Adoption of Accounting Standard for Retirement Benefits)
Effective from the first quarter of the fiscal year ending March 31, 2015, the Company and its consolidated domestic subsidiaries
have applied the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012 (hereinafter, the “StatementNo. 26”)) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012 (hereinafter, the“Guidance No. 25”)), and the method of calculating retirement benefit obligations and service costs are revised, with the method ofattributing 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 firstquarter 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 current second quarter of the fiscal year ending March 31, 2015. “Operating income”, “Ordinary income” and“Income before income taxes and minority interests” have increased by ¥316 million, respectively, for the current second quarter.

<Subsequent Event>Transforming product portfolio of Hospital and Laboratory Business in Europe

Terumo will transform product portfolio of Hospital and Laboratory business in Europe towards sustainable and profitable growth.
Accordingly, Belgium based Terumo Europe N.V. has informed its Works Council after the board meeting of Terumo Europe N.V.
held on October 23, 2014 of its intention in that regard.
Hospital and Laboratory business in Europe is experiencing significantly changing market dynamics such as health care reforms,
price pressure, and increased production costs. To adapt to these new market dynamics, Terumo decided to revise its strategy;
Terumo Europe N.V. intends to transit its activities of production and sales of Hospital and Laboratory business (main products:syringe and blood collecting tube for hospital use). If the intended plan would be implemented, up to 260 employees could beimpacted in Europe by March 2016.
On another front, the company will continue to focus on and invest in further development of value added activities in the Drug &Device (business-to-business with pharmaceutical companies) and Interventional Systems businesses.
The impact on Terumo's financial results is estimated at about ¥6.4 billion at the present time, and will be recognized as“Extraordinary losses” in the third quarter.

6

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

(Millions of yen)

Reportable Segments
Cardiac &VascularCompanyGeneral
HospitalCompany

Blood
ManagementCompany

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

100,758

81,17744,077226,013

15－－－－－－

Sales total

100,758

81,17744,077226,01315

226,028

Segment income (Excl. Amortization)

20,095

10,862

8,933

39,891(1,391)

38,500

Segment income (loss)

19,121

10,862

1,876

31,861(1,391)30,470

19.9

13.4

20.3

17.6

－17.0

Internal sales

Segment income(%)(Excl. Amortization)

226,028

Notes: 1. The (1,391) million yen adjustment to segment income is the sum of (497) million yen for inventories and (893)
million yen for others.
2. Segment income is adjusted to be consistent with “Operating income” shown on the quarterly consolidated
statements of income.
(2) The Second Quarter of Fiscal Year Ending March 31, 2015

(Millions of yen)

Reportable Segments
Cardiac &VascularCompanyGeneral
HospitalCompany

BloodManagement
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer
Internal sales
Sales total

108,91178,39446,004

233,309－－－－－－233,309－

108,91178,39446,004

233,309－

233,309

Segment income (Excl. Amortization)

21,451

9,606

9,317

40,375942

41,317

Segment income (loss)

20,489

9,606

1,952

32,048942

32,990

19.7

12.3

20.3

17.3

－

17.7

Segment income(%)(Excl. Amortization)

Notes: 1. The 942 million yen adjustment to segment income is the sum of 213 million yen for inventories and 728 million
yen for others.
2. Segment income is adjusted to be consistent with “Operating income” shown on the quarterly consolidated
statements of income.
(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.
(Changes in the composition of segments)
Sales and expenses related to the domiciliary oxygen system business and the domiciliary infusion pump business which weretransferred, and the next generation implantable left ventricular assist system business which was entered into a strategic
alliance in the previous fiscal year are allocated to “Adjustment.”
As a result of these changes, compared to the previous classification, the segment income of Cardiac & Vascular Company forthe second quarter of fiscal year ended March 31, 2014 has increased by ¥323 million. The segment income of General
Hospital Company and “Adjustment” have decreased by ¥2 million and ¥321 million, respectively.

(Note) Main products belonging to each business segment
Sub-segments
Business segments
Interventional Systems

Cardiac & Vascular CompanyGeneral Hospital Company

Main products
Angiographic catheters, PTCA balloon
catheters, Coronary stents

Neurovascular

Neuro interventional coils, etc.

CV Systems

Oxygenerators, Cardio-pulmonary bypasssystem, etc.

Vascular Graft

Artificial vascular grafts, Stent grafts

General Hospital Products

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

DM and Consumer Healthcare

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

Pharmaceutical and Nutrition

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

D&D

Prefilled syringes, Pain management systems
etc.

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

Blood Management Company7