Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2011

August 5, 2010
TERUMO Corporation

1

Financial Results (Consolidated)(Unit: Billion yen)

Q1Mar. 2010

Q1
Mar. 2011

YoY

Net Sales

77.5

81.2

5%

Gross Profit

41.6 (53.6%)

42.3 (52.1%)

2%

SG&A Expenses

25.1 (32.3%)

26.4 (32.5%)

5%

Operating Income

16.5 (21.3%)

15.9 (19.6%)-3%

Ordinary Income

16.9 (21.9%)

12.6 (15.5%)-26%

Net Income

10.8 (14.0%)

8.8 (10.8%)-19%

Average exchange rate

1US$1EUR

97yen
133yen92yen
117yenImpact on Net Sales-3%2

Net Sales (By Region)(Unit: Billion yen)

Consolidated:+5%(+8%)

Q1
Q1
Mar. 2010 Mar. 2011

Japan-1%( ): Local currency basis

Outside ofJapan+12%(+20%)
2.8

Europe+4%(+17%)

13.5
14.0
1.8

42.8 42.5
34.6

38.7

14.8
0.9

Asia & +22%
Others (+24%)
Outside of Japan Ratio: 45%->48%

13.0

Americas +14%(+20%)
8.2

10.0
0.2
3

Net Sales (By Business Segment)(Unit: Billion yen)

+2%(+3%)+10%(+16%)
0.4

Q1
Q1
Mar. 2010 Mar. 2011( ): Local currency basis

2.1+15%(+20%)
0.336.6 37.3

33.4

36.6

5.7 6.5‐57%(-57%)

1.9
GeneralHospital

Cardiac &Vascular

Blood
Transfusion

0.8

Consumer
Healthcare4Gross Profit Rate Variance Analysis
55%
0.1

54%

0.5

VolumeIncrease

Shift to higher
profitable products

53%
52%

Cost cutReimbursement price decline

0.4

1.0

1.2
Pricedecline

0.6
Foreignexchange

53.6%

Others

52.1%

51%
50%

0.7

Q1Mar. 2010

Average exchange rate Q1Mar. 2010
1US$:
97yen
1EUR:
133yenQ1Mar. 2011
92yen
117yenQ1Mar. 20115

SG&A Expenses(Unit: Billion yen)

Q1 Mar. 2010

Q1 Mar. 2011Changes

YoY%

9.5
2.6
2.1

9.8
2.6
2.3+0.3+0.0+0.22%2%
9%Depreciation &Amortization

1.3

1.1

‐0.2-15%

Others

5.7

5.7+0.01%

GeneralAdministrative Total

21.2 (27.2%)

21.5 (26.5%)

+0.3

2%

R&D Expenses

3.9

4.9(6.0%)

+1.0

25%

SG&A TOTAL

25.1 (32.3%)

26.4 (32.5%)

+1.3

5%

Salaries & Wages
Sales Promotion
Logistical Costs(5.1%)

6

Q1 Mar. 2011 Summary
Sales
Progress Rate・・49%

Operating Income・

100%

24%

Mar. 2011
Q1Mar. 2011
1st Half（Forecast）（Billion yen）

100%・・
50%

24%
Mar. 2011（Forecast）

333.0

Mar. 2011
Q1

Mar. 2011
1st Half（Forecast）（Billion yen）

164.0
81.2

・

Progress Rate

Mar. 2011（Forecast）

65.2
32.6

15.9

Mar. 2011 Assumed average exchange rate:1US$ 90yen

1EUR 120yen

7

Toward the Achievement of Annual Targets–Maintaining growth in overseas sales–Expanding high value added products–Active execution of R&D investment
in line with plan8

Key Strategies for This Fiscal Year(1) Interventional systems that benefit the healtheconomics(2) Explore the growing opportunity in the Japanesechronic care market

9(1) Interventional systems that benefit the health economics

TRI Spreading GloballySales
Salestrend
trendofofTRITRIrelated
relatedproducts
products

76（$ Mil.）

33keyskeysforforTRI
TRIexpansion
expansion

Americas1.1.ProductProductimprovement
improvement->Thin->ThinandandpliablepliableCAGR 37%
Asia & others
30（$ Mil.）
EuropeMar. 2008

2.2.Training
Training->->Doctors’
Doctors’skills
skillsJapan

3.3.Healthcare
Healthcaresystemsystem->->Health
Healtheconomics
economics

Mar. 2011（Forecast）*TRI: Interventional procedure to approach fromblood vessels in the wrist

ToTo spreadspread TRI,TRI, thethe changechange ofof thethe healthcare
healthcare systemsystem
isis necessary
necessary10

(1) Interventional systems that benefit the health economics

Drastic Changes in the US, the Largest Market
Demand for efficient andeconomical healthcare services

US healthcare reform[Inpatient reimbursement price declined]
Reimbursement＋Past

Reduce hospitals’ load byambulatory surgery

Current

Trans Femoral Intervention (Inpatient)
TRI (Outpatient)11

(1) Interventional systems that benefit the health economics

Continuous Launch of TRI-Related Products
Homeostasis band

TRI guidewire
New PTCA
guidewire

Share72%
Introducer sheath
Share54%

Launched
Launchedproducts
products

Introducer sheath for TRI（Launched in Europe）
Balloon catheter
For US market

Product
Productpipeline
pipeline12(1) Interventional systems that benefit the health economics

Disseminate through Academic Societies
Offer a workshop in an academic
society

Higher interest from doctors
Many doctors made presentations at the TCT2009 TRI session
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(1) Interventional systems that benefit the health economics

Promotional Activities Taking Advantage of the Website
Apr. 2010-14(2) Explore the growing opportunity in the Japanese chronic care market

Further Sophistication of the Chronic Phase Medical Treatment
A.
A. Choric
Choric hospital
hospital

B. medical center

coordination

C. city hospital

Nursing home
ClinicClinicHome
healthcare

Medical services given in chronic phase hospitals are required to be evenmore sophisticated. Severe patients move to a chronic phase hospital
because of the revision of medical reimbursement.

15

(2) Explore the growing opportunity in the Japanese chronic care market

Challenges of Chronic Phase Hospital■Skill■Skillof
ofnursesnurses::Many
Manyreturn-to-work
return-to-worknurses,nurses,experience
experiencebased
basedpracticepractice
andandsupervision
supervisionof
ofjunior
juniornurses
nurses■Human■Humanresources
resourcestraining
training::Limited
Limitedtime
time&&fund
fundasasaaresult
resultof
ofcarecareforforsevere
severepatients
patients■Medical■Medicaltreatment
treatment::IV
IVtherapy,
therapy,gastro
gastrostoma,stoma,suction,suction,
blood
bloodglucose
glucosemeasurement,measurement,urethralurethralcatheterization,catheterization,etc.
etc.

Training

Products
16

(2) Explore the growing opportunity in the Japanese chronic care market

Problem-solving Terumo productsPatients’Patients’QOL
QOL
Prevention
Preventionof
ofcomplications
complications
Countermeasures
Countermeasuresagainstagainstmedical
medicalaccidents
accidents
DecreasingDecreasingoperational
operationalloads
loads

Nutrition

Calorie-dense liquid meal（semisolid）, Nutritious Food

Double-bag solution, Infusion set
I.V. Solution （Needle-free system), Infusion
pump

Diabetes
Blood glucose monitor, Needle formanagement insulin injection
CAPD

CAPD Systems
CAPD Solution

Double bag
Infusion pumpSemi-solid typeInfusion set（Needle-free system

Needle for insulin injection

Blood glucose monitor

17Reference18

Income for the Q1 of the FYE Mar. 2011:
To the Forecast for the Year
(Unit: Billion yen)

Forecast for the Year Ｑ1Results

Net Sales
Operating Income

Impact of Foreign
Progress rates Exchange

333.0

81.2

24%

65.2 (19.6%)

15.9 (19.6%)

24%

Ordinary Income

65.0 (19.5%)

12.6 (15.5%)

19%

Net Income

41.5 (12.5%)

8.8 (10.8%)21%Forecast for
Average Exchange Rate the full year
90yen
(1US$)(1EUR)

120yen+0.5(Raise progress rateby 0.2%)+0.3 Billion yen(Raise progress rateby 0.4%)

92yen
117yen19

Income for the Q1 of the FYE Mar. 2011:
To the Forecast for the 1st Half
(Unit: Billion yen)

Forecast for the 1H Ｑ1Results

Net Sales
Operating Income

164.0
32.6 (19.9%)

Progress rates

81.2

50%

15.9 (19.6%) 49%

Ordinary Income

32.5 (19.8%)

12.6 (15.5%)

39%

Net Income

20.8 (12.7%)

8.8 (10.8%)42%Forecast for
Average Exchange Rate the full year
(1US$)
90yen(1EUR)
120yenImpact of Foreign
Exchange+0.5(Raise progress rateby 0.3%)+0.3 Billion yen(Raise progress rateby 0.9%)

92yen
117yen20Gross Profit, SG&A, Operating Income Rates(%)

Gross Profit
53.7
50.7

52.7

52.6

52.1

32.1

33.1

32.5

19.5

19.6

2HQ1
Mar. 2011

SG&A
33.7

35.2

Operating Income
20.6

20.0
15.5
1HMar. 2009

2H

1HMar. 201021

Changes of Quarterly Average Exchange Rates¥180

EUR (Mar. 2009)

160
140
120

EUR (Mar. 2010)
EUR (Mar. 2011)
US$ (Mar. 2009)
US$ (Mar. 2010)100

US$ (Mar. 2011)

80
Q1

Q2

Q3

Q422

IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp
Among the information that Terumo discloses, forecasts of financial
performance on future projections contain potential risks and uncertainty
since these are forecasts 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 notlimited to, changes in economic conditions surrounding Terumo, fluctuationsof foreign exchange rates, and state of competition.
The market share information in this booklet is partly derived from our own
independent research.
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