1st Quarter Financial Results for
FYE/Mar 2010

Terumo Corporation
July 30, 2009
1Financial Results (Unit: Billion yen)
Q1 FYE/Mar. 2009

Q1 FYE/Mar. 2010

Rate ofchange

Net Sales

77.8

77.5

0%

Gross profit

42.2(54.3%)

41.6(53.6%)-2%

SG&A Expenses

26.0(33.4%)

25.1(32.3%)-4%

Operating Income

16.2(20.9%)

16.5(21.3%)

1%Ordinary Income

18.9(24.2%)

16.9(21.9%)-10%

Net Income

14.0(18.0%)

10.8(14.0%)-23%

Average exchange rate

1US$ 105 yen
1EUR 163 yen

97 yen133 yen

Impact on Net Sales-7%2

Sales (by Region )(Unit: Billion yen)Japan/Outsideof Japan Total

0%
+7 %

39.9

42.8(+ 7%)-8%( + 7 %)
Ratio of outside of Japan
49 % → 45 %Mar. 2009
Q1-2%-5%( + 5%)( + 6%)（+ 11%）

13.4

Europe13.9 13.7

AmericasMar. 2010
Q1( ) : local currencybasis- 16 %

16.0

Japan

Outside of Japan Total

7.9

7.5

Asia andOthers

3

Sales ( by Product Group）(Unit: Billion yen)Mar. 2009
Q1-1%( + 2%)+1%

Mar. 2010
Q1( ) : local currencybasis( + 12%)

-9%

37.2
36.6

33.1 33.3( 0 %)+ 54 %( + 58%)

6.2

GeneralHospital

Cardiac &Vascular

5.7

BloodTransfusion

1.2

1.9Consumer
Health-care4

Gross Profit (%)
Cost Cut and Others

Shift to Highly
Profitable Products

Price Down

+ 0.3

- 0.1

Impact of Currency+ 0.7- 0.7 ｐｔ

- 1.6

FYE/Mar. 2009 Q1：54.3% Æ FYE/Mar. 2010 Q1 ：53.6%
5

SG&A Expenses(Unit: Billion yen)

SG&A. expense ratio to sales improved by 1.1pt
Japan:26.0

25.1-R&D was reinforced-A growth of retirement benefit expense was offset by a33.4％

32.3％reduction of expense
Outside of Japan：-Reduced across the Group, and improved due to a favorable
impact of foreign exchangeMar. 2009
Q1Mar. 2010
Q16

Forecast :Forecast for the 1st Half Revised Upward(Billion yen)

Q1 Results

FYE/Mar.2010
1st Half Year FYE/Mar.2010
Forecast
Forecast

Net Sales

77.5

154.0

315.0

Operating Income

16.5(21.3%)

28.0(18.2%)

56.0(17.8%)

Ordinary Income

16.9(21.9%)

28.0(18.2%)

56.0(17.8%)

Net Income

10.8(14.0%)

18.0(11.7%)

37.5(11.9%)

FYE/Mar. 2010

Average exchange rate

1US$97 yen

Q2 90 yen

95 yen1EUR133 yen

Q2 120 yen

125 yen7Topics•Performance trend update•Growth potential of interventional systems business•Others8

Performance Trends

Impact Limited Despite Slow Sales of Large Equipment

Overseas sales of large-sized equipment for cardiac surgery(billion yen)

32
1
Large-sized equipment for cardiac surgery:
Heart-lung machine

0Q1
FYE Mar. 2009

“Sarns Advanced Perfusion System 1”

Q1
FYE Mar. 20109

Performance Trends

Big Buyer China Robust Among Emerging Markets(US$ Mil.)

2015
105
Latin America

ChinaEastern Europe / Russia

0Q1

Q1

FYE Mar. 2009 FYE Mar. 201010

Interventional Systems Business

Unique Growth Potential Driving Entire Business Expansion
New Field• Coils for neuro vascularl
aneurysm treatment
High-Value-Added Medical Devices• PTCA balloon catheters
3 Basic Items(requisites for• Stents• Drug-eluting stents, etc.

interventional procedure)• Guide wires• Introducer kits

87.9 billion yen• Angiographic catheter

1985

FYE Mar. 2010
(Forecast)
11(conceptual image)“3 Basic Items” That Always Grow
Competitive quality that induces demand shifts to Terumo products• Growth on market expansion• Growth on field diversification
Heart

Neuro

Peripheral

High-value-added medical devices

3 basic items
12Extending Portfolio of Guide Wire Products
Further intonew fields
Neuro-vascular
micro wires
Peripheral-vessels
guide wires
PTCA guidewires
Global brand ofRadifocus
Guidewire
13

Sales Growing on Products
Offering Healthcare Economy Benefit
PTCA balloon catheter product lineup and sales volume (Japan)
No. of units (Thousand)Number used per case

130

(Based on surveys by Terumo)

1.24
1.21 1.18
1.12: New products that emphasize healthcare economy benefit

9050

10KongoRyujinPlus

03/03

05/03

TazunaHiryu

Launched in July

08/03

10/03
（Forecast）

14

New Field Becoming New Growth Pillar
Sales of coils for use in treating neuro aneurysms

CAGR 29%

8.4 billion yen

Acquisition of MicroVention, Inc.

3.0 billion yen

FYE Mar. 2006

FYE Mar. 2010
(Forecast)15

Coil Market Set to Continue Expanding
Trends in the neuro aneurysm treatment market
No. of cases worldwide(Thousand)100
80

Coil treatment

604020Surgery (clips)

02004(Based on surveys by Terumo)

20062008

2010

16

Pursuing Synergies Since The Acquisition
Trend in neuro aneurysm treatment[Treatment coils]
MicroVention technology＋[Access devices]

・Barecoil・Hydrocoil
・HydroSoft

Terumo technology
・3 basic items

・Micro wire・Guiding catheter
Coils for abdominal peripheral arteries
17Other Topics 1) U.S.
(U.S.$ Mil.)200

Sales recording continuous growthsince the start of direct sales
CAGR 14%150+71%100

Start of50

direct sales

0
FYE Mar.
2006

FYE Mar.
2007(Sales of catheter products in the U.S. market)

FYE Mar.
2009

FYE Mar.
2009

FYE Mar.
2010 (Forecast) 18

Other Topics 2) Thailand
Leveraging the Terumo brand to offer a full lineup of products# Hospitals: pursuing a safety strategy# Entry into the diabetes treatment business# The no.1 presence in interventional systems (Terumo share:40% Exclude DES)
Blood Transfusion
11%

CAGR 24%43
23

Consumer Health-care
1%

Cardiac & Vascular27%

GeneralHospital
61%(U.S.$ Mil.)FYE Mar.
2006

FYE Mar.
2009

19Summary# The strong yen has been a big problem,
but we are gradually overcoming it.
# We have had some success in boosting
our profitability.
# We have made a smooth start in achieving
our goal of increasing revenues and profits.
20

Reference21Factor of Changeof Sales and Operating Profit[Sales]Q1 Mar.2009: 77.8 bln yen Æ Q1 Mar. 2010: 77.5 bln yen
Increase of amountImpact of currency

＋5.5

- 5.6

- 0.3 bln yen- 0.2

Price down

[Operating Income]Q1 Mar.2010: 16.2 bln yen Æ Q1 Mar. 2010: 16.5 bln yen＋3 bln yen

Increase of amount / Improving
product mix line and others Impact of currency

+ 3.9

- 2.7

Price down

- 0.2 SG&A expense
increase-722

Reference(Unit: millions of yen)Mar. 2009
1st QuarterMar. 2010
1st QuarterMar. 2010
Forecast

R&D Expense

3,772

3,922

19,000Depreciation Expense

4,641

4,481

21,000Investment in Plant and Equipment

3,235

5,157

23,000-10,237

493

72.27

56.94

Free Cash Flow
Shareholder's Equity Per Share (Yen)

197.4723

“Tazuna,” New PTCA Balloon Catheter
Suitable for TRI Launched

Requisites for penetration ofTRI procedures* What’s TRI…
In TRI (Transradial Coronary Intervention), aballoon catheter is inserted from a micro wrist
artery to approach the coronary artery.
It imposes as little physical burden on patientsas they can walk soon after the operation, andfacilitates outpatient surgery.

Device Development
To minimize in diameter and improve insmooth accessibility
SafetyBenefits to Hospitals

to be reduced(less bleeding)Low cost and easy totake care of patients

Medical Education

Need of Patients

Trainig

Early post-surgery
recovery24

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.
25