Financial Results for the Fiscal Year
Ended March 31, 2010
Outlook for the Fiscal YearEnding March 31, 2011
Terumo Corporation
May 12, 20101

Financial Results (Consolidated)(Unit: Billion yen)

FYE
Mar. 2009

FYE
Mar. 2010

YoY

Net Sales

302.7

316.0

4%

Gross Profit

158.2 (52.3%)

166.4 (52.6%)

5%

SG&A Expenses

104.2 (34.5%)

103.1 (32.6%)-1%

Operating Income

54.0 (17.8%)

63.3 (20.0%)17%

Ordinary Income

52.6 (17.4%)

63.6 (20.1%)

21%

Net Income

36.9 (12.2%)

40.7 (12.9%)

10%

Average exchange rate

1US$ 101 yen
1EUR 144 yen93 yen
131 yen

Impact on Net Sales-4%2

Net Sales (by Region)
Japan/Outside of Japan Total+4%(+9%)+ 7%

Outside of Japan, Ratio
46% Æ 45%+ 1%(Unit: Billion yen)
FYE
FYE
Mar.2009 Mar.2010( ) : local currency basis(+ 11%)
13.4(Impact of Foreign Exchange)

162.0 173.9

140.7 142.1+ 1%(+ 12%)+ 0%
5.8(+ 8%)4.6

+ 2%(+ 12%)

56.0

56.6

3.0

53.8 53.8
31.0 31.7

Japan

Outside ofJapan

EuropeAmericas

Asia &Others

3Sales ( by Product Group)(Unit: Billion yen)

+ 2%(+ 4%)

FYE
FYE
Mar.2009 Mar.2010
2.9(Impactof ForeignExchange)+ 7%(+ 14%)

135.8
146.5

149.8

127.0

( ) : local currency basis

9.1+ 0%(+ 6%)

23.9

23.9

1.3+ 21%(+ 22%)
5.3

GeneralHospital

Cardiac &Vascular

Blood
Transfusion

0.1

6.4

Consumer
Healthcare4Gross Profit Variance Analysis
Factors in the increase YoY:
+1.7ptCostReduction
Shift to Highly
Profitable
Products

Factors in the decrease YoY :-1.4ptVolume+0.3

Impact of Foreign Exchange-0.5

Others-0.9+0.6

・Retirement benefit
expenses (-0.2)
・Depreciation (-0.2)+0.8+0.3

FYE Mar. 2009
52.3%
Average exchange rate

1US$ 101 yen
1EUR 144 yen

FYE Mar. 2010Æ
52.6%
93 yen131 yen5

SG&A, R&D expenses(Unit: Billion yen)

104.2

34.5%

FYE
Mar. 2009

103.1

32.6%

FYE
FYE
ChangeMar. 2009 Mar. 2010
Salaries & Wages
37.4
38.2
+0.8
Sales Promotion
10.9
11.0+0.1
Logistical Costs
9.1
9.0
-0.1
Depreciation &5.5
5.1
-0.4
Amortization
Others
24.1
22.3
-1.8
SG&A Sub Total
87.0
85.6-1.4

YoY%2%
1%-1%-9%-8%-2%R&D Expenses

17.2

17.5

+0.3

2%

SG&A TOTAL

104.2

103.1

-1.1

-1%

FYE
Mar. 2010
6Outlook for the Fiscal YearEnding March 31, 20117

“Higher Earnings on Higher Sales”(Unit: Billion yen)FYE Mar. 2010

FYE Mar. 2011

ResultForecast

YoY

Excl. impact offoreign exchange,
reimbursement priceof drug & device

Net Sales

316.0

333.0

5%

9%

Operating Income

63.3(20.0%)65.2(19.6%)

3%

17%

Ordinary Income

63.6(20.1%)

65.0(19.5%)

2%

Net Income

40.7(12.9%)

41.5(12.5%)

2%

Average exchange rate

1US$ 93 yen
1EUR 131 yen90 yen
120 yen8

Japanese MarketChanges in Medical System
Apr. 2010: Revision of Medical Fee
Reimbursement+1.55%

Acute phase• Upward revision of procedure fee- 30 to 50%, in particular for highlyspecialized procedures• Revision of critical care/emergency care
- Hospitalization fees
- Hospital visit fee for HCU• Evaluation of team medical care
- Additions for nutrition support teams

Chronic phase• Evaluation of backup support in chronic phase- Initial additions for emergency andhome treatment support hospitals• Evaluation of accepting patients with advanceddiseases• Evaluation of regional cooperation- Additions for treatment and discharge planning

Sophistication & Increased Efficiency Cooperation with Acute Phase &Home Medical Treatment

9Strategy for Japan

Reorganizing Sales Force for Better Performance
Functional Division andRegional Cooperation

Strategies to match shift in policy

Acute Phase

Specialized
Sales Reps
for Certain Fields

More advanced medical care andspecialization

Sales Reps
Specializingin Diabetes

Cooperation
Chronic Phase

Sales Reps

Acceptance of patients withan advanced disease(Shift fromother fields)(Newlyorganized)

Trainingto Respondto Needs

CooperationClinics/Home
Medical Care
Improvement of medical care quality
10

GlobalHealthcare Reforms in Progress Globally
The United States- Market expansion with improved coveragerate of uninsured persons- Review of high cost medical services- Taxation on companies (2.3% of sales from fiscal 2013)

Keywords
Minimum
Invasiveness

BetterEfficiency

Europe- Reduction of medical costs and expenses- (Financial crisis in Greece)

China- Market expansion with introduction of medical
insurance- Improvement in medical services- Emerging European, US and local manufacturers“Medical Economy”

Infection
Control

Safety11Global
Applications of European Interventional Business Model
Applying model to Asia, Latin America

Sales double in 4 years, reaching € 200M

Sales(€ Mil.)

Continuous launch of new products
Expansion of domains and sales areas
Integration of local sales, development and production

Aspiration Catheter"Eliminate"
PTCA Balloon Catheter
PTCA Balloon Catheter"Tazuna""Hiryu"Bare-Metal Stent

Drug-Eluting Stent

200

PTCA Guidewire"Runthrough NS""Destination"

Guiding Catheter"Heartrail"
Bare-Metal Stent

100"Tsunami"

202

Guiding Sheath“TR Band"150"Nobori"
Peripheral Stent"Misago"Radial artery compression device"Kaname"

PTCA Balloon Catheter

Micro-Catheter"Ryujin""Progreat"

103

PTCA Balloon Catheter"Hayate"x2 in 4years

50

55

x2 in 5 years

01999

2001

2003

2005

2007

2009

12

GlobalExpansion and Strengthening of Sales and Manufacturing SystemTurkey
・70 million people, ranked 2nd inEurope
・Average age of 29
・Geographical advantages

South America

Sales NetworkExpansion

Opening ofTurkey Sales Office・500 million people(ASEAN: 600 million)
・7-billion scale healthcare market(ASEAN: 2.3 billion dollars)Opening ofColumbia Sales OfficeMiamiMexico

Expansion of production capability
and aiming for cost reduction
China: Increased production of blood bags and thermometers
India: Increased production of blood bags
Vietnam: Starting production of interventional systems and vascular grafts
Philippines: Increased production of general hospital products

2009: Improve andstrengthen import andsales functions in Brazil

2007: Local agent inChile turned into ansubsidiary13

ChinaExpansion of Product Range and Establishment of Infrastructure for the Future

Establishment of infrastructure toprepare for locally self-sufficient business・Strengthening alliances in development,
production and sales
・Head office functions to be established in China・Strengthening brand value

Limited business・ Profitability focus
・ Minimal risk

Expanding product range

14

Reference15

Income for the FYE Mar. 2010:
To the Forecast for the year
FYE Mar. 2010
Forecast（Unit: Billion yen）

FYE Mar. 2010
Impact of Foreign
ResultProgress Rates
Exchange+2.5

Net Sales

315.0

316.0

100%

（Raise progress rate bya little less than 0.8 %）+0.7

Operating Income 63.0 (20.0%)

63.3 (20.0%)100%

Ordinary Income

61.0 (19.4%)

63.6 (20.1%)

104%

Net Income

40.0 (12.7%)

40.7 (12.9%)

102%

Average exchange Rate
90yen
1US$1EUR
132yen（Raise progress rate bya little less than 1.1 %）93yen
131yen16

Income for the 2nd half FYE Mar. 2010:
To the Forecast for the 2nd Half
（Unit: Billion yen）

the 2nd Half

Net Sales

Forecast

the 2nd half
Result

156.9

157.9

Impact of Foreign
Progress Rates Exchange

101%

+2.5
（Raise progress rate by 1.6 %）Operating Income 30.4 (19.4%)

30.7 (19.5%) 101%

+0.7
（Raise progress rate by 2.3 %）Ordinary Income

28.8 (18.4%)

31.4 (19.9%) 109%Net Income

19.2 (12.2%)

20.0 (12.6%)

Average exchange Rate
1US$1EUR

85yen
130yen104%

90yen
129yen17Financial Results for the Three Months(Unit: Billion yen)
Q4/FYE Mar. 2009

Q4/FYE Mar. 2010

Rate ofChange

Net Sales

71.2

77.1

8%

Gross Profit

34.8（48.8%）

40.3（52.2%）

16%

SG&A Expenses

26.3（36.8%）

27.0（35.0%）

3%Operating Income

8.5（12.0%）

13.3（17.2%）

56%

Ordinary Income

9.9（13.8%）

13.2（17.2%）

34%

Net Income

8.1（11.4%）

8.9（11.5%）

9%

Average exchange rate

1US$94 yen
1EUR 122 yen

91 yen126 yen

Impact on Net Sales-1%18Forecast for FYE Mar. 2011,
Impact of Reimbursement Drug & Device price（Unit: Billion yen）

FYE Mar. 2011
Forecast

FYE Mar. 2011 Excl. impact of foreign exchange, increase
Forecast
reimbursement price drug & device

Sales

333.0

346.1

(YoY)

(+5%)

(+9%)

Operating Income 65.2

74.3

(+3%)

(+17%)(YoY)

Impact13.1

Details
Reimbursement priceof drug & device 6.0

Foreign exchange 7.1

9.1

Reimbursement priceof drug & device 6.0

Foreign exchange 3.1

19Gross Profit, SG&A, Operating Income Rates(%)

Gross Profit
53.7

50.7

52.752.632.1

33.1

20.6

19.5

SG&A Rate
33.7

35.2

Operating Income
20.0
15.5
1st half
FYE Mar. 2009

2nd half
FYE Mar. 2009

1st half
FYE Mar. 2010

2nd half
FYE Mar. 201020

Changes of Quarterly Average Exchange Rates
JP¥
180
1EUR (FYE Mar. 2009)

160
140
120

1EUR (FYE Mar. 2010)
1US$ (FYE Mar. 2009)100
1US$ (FYE Mar. 2010)

80

Q1

Q2

Q3

Q421

IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp
Among the information that Terumo discloses, forecasts of financial performanceon future projections contain potential risks and uncertainty since these are forecasts
on projections made by Terumo based on limited information available at themoment of disclosure. Accordingly, it should be noted that actual results may differ
from those forecasts on projections due to various factors. Factors affecting toactual results include, but are not limited to, changes in economic conditions
surrounding Terumo, fluctuations of foreign exchange rates, and state ofcompetition.
The market share information in this booklet is partly derived from our own
independent research.
22