Third Quarter Financial Results
for the Fiscal YearEnding March 31, 2010
Terumo Corporation
January 28, 2010
1Financial Results(Unit: Billion yen)

Q3 YTDFYE Mar. 2009

Q3 YTDFYE Mar. 2010

YoY

Net Sales

231.5

238.9

3%

Gross Profit

123.4(53.3%)

126.1(52.8%)

2%

SG&A Expenses

77.9(33.6%)

76.1(31.9%)-2%

Operating Income

45.5(19.7%)

50.0(20.9%)10%Ordinary Income

42.7(18.5%)

50.4(21.1%)

18%

Net Income

28.7(12.4%)

31.9(13.3%)

11%

Average exchange rate

1US$ 103 yen
1EUR 151 yen

94 yen133 yen

Impact on Net Sales-6%2

Sales (by Region )(Unit: Billion yen)
+7%

Japan/Outside of Japan
Total+3%(+9%)

Outside of Japan, Total-1%(+11%)
Outside of Japan, Ratio
46% → 44%

Q3 YTD
Mar. 2009

Q3 YTD
Mar. 2010( ) : local currency
basis

133.1
124.2
-3%-0%-0%(+10%)(+10%)(+13%)

42.9

41.4

42.1

42.1
22.4

JapanEuropeAmericas

22.3

Asia andOthers
3

Sales ( by Product Group)(Unit: Billion yen)Mar. 2009
Q3 YTD+1%+5%(+4%)Mar. 2010
Q3 YTD( ) : local currency
basis(+14%)

-2%
113.0

114.7

101.2
96.2(+6%)

+28%
18.2

17.9(+30%)

4.0

GeneralHospital

Cardiac &VascularBlood
Transfusion

5.1

Consumer
Health care
4Gross Margin Change Factors
Factors in the increase year-onyear: + 1.5 pt

Factors in the decrease year-onyear: -2.0 pt
VolumeCost Reduction
Shift to highly
profitable products

Others

+0.3
- 1.1

+0.6

Impact ofcurrency

+0.6
- 0.9

- 0.5

FYE Mar. 2009
Q3YTD 53.3%
1US$ 103yen
1EUR 151yen→

FYE Mar. 2010
Q3YTD 52.8%
94yen
133yen5

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

77.9

33.6%

76.1

31.9%

FYE Mar. 2009

FYE Mar. 2010

Q3YTD

Q3YTD

Q3YTD
FYE Mar. 2009

Q3YTD
FYE Mar. 2010

ChangeYoY

Salaries & wages
Sales promotion
Logistical costs
Depreciation &amortization
OthersSG&A Sub Total

28.4
8.2
7.0

28.5
8.0
6.7

+0.1
-0.2
-0.3

0%
-2%
-4%

3.9

3.8

-0.1

-3%

18.2
65.8

16.5
63.4

-1.7 -10%-2.4 -4%

R&D Expenses

12.2

12.6

+0.4

4%

SG&A TOTAL

77.9

76.1

-1.8-2%6

Forecast for this Fiscal Year is on Hold
(Unit: Billion yen)

FYE/Mar.2010

FYE/Mar.2010

Q3YTD Result

Forecast

Net Sales

238.9

315.0

Operating Income

50.0(20.9%)

63.0(20.0%)

Ordinary Income

50.4(21.1%)

61.0(19.4%)

Net Income

31.9(13.3%)

40.0(12.7%)

Average exchange rate

1US＄

94 yen92 yen1EUR133 yen132 yen

Q4 forecast rate

1US＄

85 yen1EUR

130 yen7Topics
・Business expansion in growing fields‐ Nutritious food market‐ Cerebral aneurysm treatment

・Other topics

8

JapanNutritious Food isa Prospective Growing Market(Unit: Billion yen)

A positive sales growth

CAGR

23%
5.3

2.3The market will continue togrow and gather attention

FYE Mar. 2005 FYE Mar. 2009

Shifting from the pharmaceutical nutrients to nutritious food due to the drug cost reduction
CAGR 0.8%

Pharmaceuticalnutrients
70 billion yen

14.7%
Nutritious food
45 billion yen
9CAGR(FYE Mar. 2006 ~ FYE Mar. 2009) , Market size: Terumo’s researchJapanThe Paradigm Shift of the Nutritional Management
Progresses Towards an Early Recovery and Hospital Discharge

SurgicalAbrosia

operation

Gradual recovery

Active administrationof nutrients
Surgical Early
operation recovery
New marketEarlyhospitaldischargeMarketexpansion

Towards
thechronicphase

10

The Medical Practitioners and Patientsare Waiting for Better Products

Japan

Tube and Bottle feeding

Bags are reused

Preparation is complicatedIt can cause the risk of backflow and infection

Oral administration

It doesn’t taste good.
Can’t drink this much…

11

JapanPromoting the Product Development
in order to Improve the Healthcare Economy
Ready-for-use

Simple &convenient-Practice improvement-Infection prevention-Medical accidents

Prevents
the back flow

prevention-Improve the QOL

Jelly typeA thickened type

Appetizing,can drink it all

Small volume
with high calorie
Flavored to suitthe palate of the Granular type
elderly people

12Global

The Coil Treatment of Cerebral
Aneurysm Grows(Unit: Billion yen )We expanded rapidly
after entering the business

CAGR※ Entered the market following the acquisition of
MicroVension (U.S.) in 2006

The market is growing

33%

3.0
Sales: 2005
FYE Mar. 2009
(before the acquisition)

OthersCoil44.5

25.0
Access18.5
The coil treatment
88,000 cases annually,
Growth rate: 11%※2008 Results (by Terumo)

7.1

・Stent (Coil-Assist)
・Stent (Flow-diversion)
・Embolic Agent・Micro catheters
・Micro guidewires
・Guiding catheters etc

Device market
880 (US $Mil) annually,
Growth rate: 17%

13

GlobalFaster Development
for Expanding the Business FurtherJapan

December 2009

Launched:“HydroCoil”
C1 (the additionalcharge for the newfunction) approved

January 8, 2010

Guidewire forthe cerebral vessel“Traxess”

Launch Planned
for this Q4
Guiding catheter
for the cerebral
vesselImproving the product range in Japan
Pursuing synergies of MicroVention & Terumo“Only One Technology”
MicroVention’s coatedcoil“Improved designfor the cerebral blood vessel”
Terumo’s access devices

Challenge todevelop new devices
14

Newly Launched “Oxygen concentrator for homeoxygen therapy” with a Safety Mechanism

JapanThe first ever launchin the world

Equipped with the detection system for prevention against fire

Oxygen concentrator for home oxygen therapy“O2 Green IBUKI 5SP”

15

The Production Expansion inAshitaka & Fujinomiya Factories

New building of Ashitaka factoryJapan

A rendering of the new building ofFujinomiya factory

January 20, 2010: Completed

January 2010: Construction began
Spring 2012 : Ready for operation16

Reference17

Financial Results for the Three Months(Unit: Billion yen)
Q3 /FYE Mar. 2009

Q3 /FYE Mar. 2010

Rate ofchange

Net Sales

74.5

80.88%

Gross Profit

39.2(52.6%)

42.8(52.9%)

9%

SG&A Expenses

25.1(33.7%)

25.4(31.3%)

1%Operating Income

14.1(18.9%)

17.4(21.6%)

24%

Ordinary Income

9.9(13.3%)

18.1(22.4%)

83%

Net Income

5.8( 7.7%)

11.1(13.7%)

93%

Average exchange rate

1US$96 yen
1EUR 127 yen

90 yen133 yen

Impact on Net Sales-1%
18Income for the Third Quarter FYE Mar. 2010:
To the Forecast for the year
（Unit: Billion yen）Forecast

Net Salesfor the Year

Q3 YTD

Progress rates

315.0

238.9

76%

50.0 (20.9%)79%

Operating Income 63.0 (20.0%)
Ordinary Income 61.0 (19.4%)

50.4 (21.1%)

83%

40.0 (12.7%)

31.9 (13.3%)

80%

90 yen94 yen132 yen

133 yen

Net Income
Exchange Rate
US$EUR

Impact of the currency+1.6（Push up progress rate bya little less than 1 %）+0.5
（Push up Progress rate bya little less than 1 %）19

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

Forecast

Q3for the 2nd Half (Three months) Progress rates

80.8

51%

Operating Income 30.4 (19.4%)

17.4 (21.6%)

57%

Ordinary Income 28.8 (18.4%)

18.1 (22.4%)

63%

19.2 (12.2%)

11.1 (13.7%)

58%

85 yen
130 yen

90 yen133 yen

Net Sales

Net Income
Exchange Rate
US$EUR

156.9

Impact of the currency+1.6（Push up progress rate by 1 %）+0.5
（Push up progress rate by 2 %）20

Gross Margin, SG&A Expenses Rates
Both Contribute to Operating Margin Recovery(%)

Gross Margin+1.1
52.6

48.8

53.6

51.8

SG&A Rate

33.7

52.9

-0.6
36.8

32.3

31.9Operating Margin

31.3

+1.7

18.9

12.0

21.3

19.9

21.6

Q3
FYE Mar. 2009

Q4

Q1
FYE Mar.2010

Q2Q321

Changes of Quarterly Average Exchange Rates(The Strong Yen Keeps against the US$ YoY )¥180
EUR (FYE Mar. 2009)

160
140
120

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

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 performanceon 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 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.
23