Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2016
November 5, 2015
Exchange where listed: TSE

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

Company code number
Representative:
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1. Consolidated Financial Highlights for the Six Months Ended September 30, 2015
(From April 1, 2015 to September 30, 2015)(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)%

Profit attributable toowners of parent

Ordinary income(Millions of yen)%

(Millions of yen)%%

259,167 11.1
39,10227,012 23.5
35,758Six months ended September, 2015
18.5
5.1
233,30921,879 12.4
32,99034,039 15.1
Six months ended September, 2014
3.2
8.3
(Notes) Comprehensive income: September 2015: 23,117 million yen (-46.5%) September 2014: 43,173 million yen (18.2%)
Net income per share,
fully diluted

Net income per share

Six months ended September, 2015
Six months ended September, 2014

(Yen)

(Yen)

71.50
57.62

66.90
57.61

(2) Consolidated financial position
Net assets

Total assets(Millions of yen)

As of September 30, 2015
As of March 31, 2015
(Notes) Shareholders' equity:

Equity ratio(Millions of yen)

Net assets per share%(Yen)577,332
59.3
973,229
992,07357.8
573,523
September 30, 2015: 577,123 million yen March 31, 2015: 573,444 million yen

1,535.97
1,513.73

2. Dividends
Cash dividends per share
3rd quarter2nd quarter
4th quarter

1st quarter
Year ended March, 2015
Year ending March, 2016
Year ending March, 2016 (forecast)(Notes) Revise of dividends forecast : Yes

total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

－－

14.50
19.00

－

16.00

30.50

－

19.00

38.00

For details of the revisions to the projection of cash dividend, please refer to “Terumo Revises Upward Interim Dividend and Year-End Dividend Forecast for theFiscal Year Ending March 31, 2016” announced today (November 5, 2015).

3. Consolidated Forecast for the Year Ending March 2016 (From April 1, 2015 to March 31, 2016)
Net sales(Millions of yen)

Operating income%(Millions of yen)

Profit attributable toowners of parent

Ordinary income%(Millions of yen)%

525,000
73,00076,000Year ending March, 2016
7.3
12.7
3.2
(Notes) Forecast for fiscal year ending March, 2016 which was announced on September 24, 2015 has not been revised.
(Assumed exchange rate for the second half of fiscal year ending March, 2016: USD1=JPY120, EUR1=JPY130)

Net incomeper share(Millions of yen)%

48,50026.1(Yen)

128.73Among 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 actual
results 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. Financial Statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2015

As of September 30, 2015

AmountAmount(Assets)%

I Current assets

412,45841.6%
417,642

Cash and deposits

129,679

140,752
102,593

Noteｓ and accounts receivable-trade104,944

Marketable securities

50,00050,000Inventories

101,472

101,483

Deferred tax assets

13,94914,149Other

13,871

10,183

Allowance for doubtful accounts(1,458)(1,520)42.9

II Noncurrent assets

575,84258.0

550,606

56.6

1. Property, plant and equipment

178,49618.0

179,223

18.4

Buildings and structures

60,78365,638

Machinery, equipment and vehicles

45,61650,396Land

22,02323,704

Lease assets

895

862

Construction in progress

39,02928,778Other

10,1479,841

2. Intangible assets

331,990

Goodwill

166,990

158,088

Customer relationships

103,217

99,828

Other

61,781

3. Investments and other assets
Investment securities, including investments inunconsolidated subsidiaries and affiliates

65,35533.4

32.7

60,254
6.6

45,461

Deferred tax assets

318,171

53,211

5.5

33,462259

294

Retirement benefit assets

6,786

6,228

Other

12,847

III Deferred assets

3,772

0.4

4,980

0.5

992,073100.0

973,229

100.0

Total assets

213,226

(Millions of yen)
As of March 31, 2015

As of September 30, 2015

AmountAmount(Liabilities)
I%

Current liabilities

129,947

Notes and accounts payable-trade

38,484

Short-term debt
Current portion of long-term debt
Lease obligations%
107,801

242

5,417

5,398

208

157

19,714

11,553

Deferred tax liabilities

105

75

Provision for bonuses

5,560

5,529

Notes and accounts payable-facilities

14267

8,667

4,384

Other

51,282

Noncurrent liabilities

288,602

46,01629.1

288,094

Bonds payable

40,00040,000Convertible bonds with subscription rights to shares

100,233

100,209

Long-term debt

79,14180,568

Lease obligations

278

229

50,01347,80666

66

Retirement benefit liabilities

7,020

7,053

Asset retirement obligations

233

234

11,615

11,927

Deferred tax liabilities
Provision for directors' retirement benefits

Other

11.1

34,376364

Income taxes payable

Provision for directors' bonuses

II

13.1

29.6

Total liabilities

418,55042.2

395,896

40.7

IShareholders' equity471,102

47.5

478,656

49.2

Capital stock

38,716

Capital surplus

52,10350,928Retained earnings

383,317403,048

Treasury stockII

38,716(3,035)

Accumulated other comprehensive income
Unrealized gains (losses) on available-for-sale securities,
net of taxes

102,341(14,036)
10.3

98,466

16,91014,306－0Foreign currency translation adjustments, net of taxes

89,04387,390

Accumulated adjustments for retirement benefits, net of taxes(3,611)

Deferred gains (losses) on hedges, net of taxes

10.1(3,230)

III

Stock subscription rights

780.0

1210.0IV

Non-controlling interests－－880.0

Total net assets

573,52357.8

577,332

59.3

Total liabilities and net assets

992,073100.0

973,229100.0

3

(2) Consolidated statements of income(Millions of yen)
For the six months ended

For the six months ended

September 30, 2014

September 30, 2015

AmountAmount%%I

Net sales

233,309100.0

259,167

II

Cost of sales

110,370

47.3

119,80946.2

Gross profit

122,93952.7

139,357

53.8

IIIIV

Selling, general and administrative expenses

89,94838.6

100,255

38.7Operating income

32,99014.1

39,102

15.1

Non-operating income

3,659

1.6

1,198

0.5

4,541

1.8

Interest income

235

348

Dividends income

184

228

Royalty income

9596

Foreign exchange gains
OtherV－

677

523
2,610

1.1

Interest expenses

502

694

Sales discounts

339

209

Foreign exchange losses－2,386Equity in losses of affiliates

5157

Loss on disposal of inventories

243

38

1,519

1,054

Ordinary income

34,03914.6

35,75813.8

Extraordinary income

2,035

0.9

5,596

2.2

992

0.4

Gain on sales of property, plant and equipment

VII2,467

Non-operating expenses

OtherVI

100.0

1304819

Gain on sales of investment securities－776

Gain on adjustment of account payable

1,905

－

Extraordinary expenses

1,993

Loss on disposal of property, plant and equipment
Impairment loss
Loss on liquidation of subsidiaries

0.9

397

193

1,225

799

371

Income before income taxes
VIII Income taxes－
34,081

14.6

40,362

15.6

12,201

5.2

13,364

5.2

10.4

Current

11,85814,757

Differed343(1,392)

ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent4

21,8799.4

26,997

－－

(15)

0.0

21,8799.4

27,012

10.4

(3) Consolidated statements of comprehensive income(Millions of yen)
For the six months ended
September 30, 2015
Amount

For the six months ended
September 30, 2014
Amount
IIIProfit
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:21,87921,293
2,691
218,663(65)(2,604)0(1,654)380

1

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

526,997(3,880)(2)
43,173

23,11743,17323,134－(17)

(4)Notes<Significant accounting policies in preparing the consolidated financial statements>
Changes in accounting policy(Application of Accounting Standards regarding Business Combinations)
As the "Revised Accounting Standard for Business Combinations" (ASBJ Statement No.21, September 13, 2013; hereinafter the"Business Combinations Accounting Standard"), "Revised Accounting Standard for Consolidated Financial Statements" (ASBJ
Statement No.22, September 13, 2013; hereinafter the "Consolidation Accounting Standard"), "Revised Accounting Standard forBusiness Divestitures" (ASBJ Statement No.7, September 13, 2013; hereinafter the "Business Divestitures Accounting Standard") andother standards have been applied from the three months ended June 30, 2015. Accordingly, the accounting method has been changed
that the difference associated with changes in equity in subsidiaries remaining under the control of the Company is recorded as capitalsurplus, and acquisition-related costs are recorded as expenses for the fiscal year in which the costs are incurred For businesscombinations implemented on or after the beginning of the three months ended June 30, 2015, the accounting method has beenchanged to reflect the adjustments to the allocated amount of acquisition costs on the finalization of provisional accounting treatmentin the consolidated financial statements for the quarter containing the date of the business combinations.
In addition, the Company has changed the presentation of net income, etc. as well as the presentation of minority interests to noncontrolling interests. To reflect these changes in presentation, the quarterly consolidated financial statements for the three months
ended September 30, 2014 and consolidated financial statements for the fiscal year ended March 31, 2015 have been reclassified.
With respect to application of the Accounting Standards regarding Business Combinations, the transitional treatment as prescribed inarticle 58-2 (3) of the Business Combinations Accounting Standard, article 44-5 (3) of the Consolidation Accounting Standard andarticle 57-4 (3) of the Business Divestitures Accounting Standard was applied. The cumulative impact of the retroactive application ofthe new accounting policies over all past periods at the beginning of the three months ended June 30, 2015 was reflected in capitalsurplus and retained earnings.
As a result of this change, as of the beginning of the six months ended September 30, 2015, goodwill, capital surplus and retained
earnings decreased by 3,135 million yen, 1,175 million yen and 1,220 million yen, respectively. Additionally operating income, ordinary
income, and income before income taxes for the six months ended September 30, 2015 all increased by 96 million yen.

6

5. Segment Information[Reportable Segments](1) The Second Quarter of Fiscal Year Ended March 31, 2015

(Millions of yen)

Reportable Segments
Cardiac &VascularCompanyGeneral
HospitalCompanyBloodManagement
Company

Adjustment

Total

Subtotal

Sales and operating income:
106,834

78,39448,081

233,309－－－－－－－

Sales total

106,834

78,39448,081

233,309－

233,309

Segment income (Excl. Amortization)

21,515

9,606

9,252

40,375942

41,317

Segment income (loss)

20,660

9,606

1,782

32,048942

32,990

20.1

12.3

19.2

17.3

－

17.7

Sales to customer
Internal sales

Segment income(%)(Excl. Amortization)

233,309

Notes: 1. The 942 million yen adjustment to segment income is the sum of 213 million yen for inventories and 728 million yenfor others.
2. Segment income is adjusted to be consistent with operating income shown on the quarterly consolidated income
statement.
(2) The Second Quarter of Fiscal Year Ending March 31, 2016

(Millions of yen)

Reportable Segments
Cardiac &VascularCompanyGeneral
HospitalCompany

Blood
Management
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

125,542

80,83052,794259,167－－－－－－－

Sales total

125,54280,830

52,794259,167－

259,167

Segment income (Excl. Amortization)

29,284

11,724

9,977

50,986(1,668)49,317

Segment income (loss)

28,376

11,724670

40,770(1,668)

39,102

23.3

14.5

18.9

19.7

－

19.0

Internal sales

Segment income(%)(Excl. Amortization)

259,167

Notes: 1. The (1,668) million yen adjustment to segment income is the sum of (779) million yen for inventories and (889)
million yen for others.
2. Segment income is adjusted to be consistent with operating income shown on the quarterly consolidated income
statement.
(Changes in the category of segments)
As a result of reclassification in performance management among overseas subsidiaries, “Harvest Technologies Corporation”
and “Harvest Technologies GmbH” have been transferred from “Cardiac & Vascular Company” to “Blood Management
Company” since October 1, 2014. “Segment income” has been adjusted retrospectively to reflect the effect of this change.

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

Cardiac & Vascular Company

General 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.

D&D

Prefilled syringes, Pain management systems,
I.V.solutions, Nutritious food, CAPD systems,
etc.

DM and Consumer Healthcare

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

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

Blood Management Company

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