Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2012

Terumo Corporation
January 30,30 2012

Consolidated Q3 Results(billions of yen)

Q3 YTDMar 2011
Mar.

Q3 YTDMar 2012*
Mar.

YoY%

Net Sales

244.2

288.9

+18%

G
Gross
P
Profitfit

127 2 （52.1%）
127.2

154 0 (53.3%)
154.0

+21%
21%

SG&A Expenses

79.1 （32.4%）

104.1 (36.0%)+32%

Operating Income

48.1 （19.7%）

49.9 (17.3%)+ 4%(Excl. Amortization of goodwill)49.3 （20.2%）

55.5 (19.2%)+13%

Ordinary Income

42.9 （17.6%）

46.3 (16.0%)+ 8%

Net Income

27.5 （11.3%）

22.0 ( 7.6%)-20%

Average Exchange Rate

US$ 87 yen

79 yenEUR 113 yen

111 yen* Consolidated BCT Apr.-Dec. and Harvest May-Dec. results

2012/1/30©Terumo Corporation

2/25

Q3 Results of BCT Stand Alone(billions of yen)

Q3 YTD
Mar. 2012

YoY%(Constant Currency)

Net Sales

34 234.2+ 9%Gross Profit

20.8 （60.8%）+ 5%

SG&A Expenses

12.6 （36.9%）

+ 16%

O
Operatingti IIncome

8 2 （23.9%）
8.2（23 9 ）-Ordinary Income

7.9 （23.0%）

Net Income

4.9 （14.4%）

5%

If excluding
g expenses forintegration, operating income
grew at +1% year on year

Excluding newly accrued amortization of goodwill and intangible assets
2012/1/30©Terumo Corporation

3/25

Excluding
BCT & Harvest

Q3 Results of Existing Business(billions of yen)

Q3 YTD

Q3 YTD

Mar. 2011

Mar. 2012

YoY%ConstantCurrency

Net Sales

244 2
244.2

253 5
253.5

+4%+7%

Gross Profit

127.2 （52.1%）

132.3 （52.2%）+4%+8%

SG&A Expenses

79.1 （32.4%）

81.9 （32.3%）+4%+6%O
OperatingIncomeI48 1 （19.7%）
48.1（）

50 4 （19.9%）50.4（）+5%
5% +11%
11%

Ordinary Income

42.9 （17.6%）

47.2 （18.6%） +10%

Net Income

27.5 （11.3%）

24.3 （ 9.6%） -12%

Excluding newly accrued amortization of goodwill and intangible assets
2012/1/30©Terumo Corporation

4/25

Excluding
BCT & Harvest

Net Sales (by Region)(billions of yen)

Consolidated: +4% （+7%）

Q3 YTD
Q3 YTDM 2011 Mar.
Mar.
M 2012( ) Constant Currency

Japan+6%

Outside of Japan
Europe+1%（+8%）+4%(+7%)

41.1
411
42.6

-7%

42.0

Americas （+2%）
133.9 141.9

110.3 111.6

39.2

China+23%（+35%）

Asia &Others+6%（+11%）

6.9
8.5
20.0
21.3

Asia & Others: Comparing the results for the same period, Apr.-Dec.
2012/1/30©Terumo Corporation

5/25

Excluding
BCT & Harvest

Net Sales (by Business Segment)-2%（（-1%）
1%）(billions of yen)

+10%（（+15%））Q3 YTD
Q3 YTDM 2011 Mar.
Mar.
M 2012( ) Constant Currency

113.5
115.5

117.4

+4%
（ 7%）
（+7%）

106.8
18.4

19.0

+4%（+4%）34
3.4

GeneralHospital

Cardiac &VascularBloodManagement
2012/1/30

35
3.5

Consumer
Healthcare©Terumo Corporation

6/25Excluding
BCT & Harvest

Gross Profit Variance Analysis

0.2
02
0.2
0.5

CostdownS
Shifttohighlyprofitableproducts

0.5
Foreignexchange

Volume0.3
Prices

52.2%

52.1%
Q3 YTD
Mar. 2011

Average
Exchange Rate
US$:
EUR:

Q3
Mar. 2011
87 yen113 yen

Q3Mar. 2012
79 yen111 yen

2012/1/30

Q3 YTD
Mar. 2012©Terumo Corporation

7/25

Excluding
BCT & Harvest

SG&A Expenses(billions of yen)

Q3 YTDMar 2011
Mar.

Q3 YTDMar 2012
Mar.

YoY

YoY%

Salaries & Wages

28.8

29.2+ 0.4+1%

Sales Promotion

77
7.7

80
8.0+ 0.303+5%

Logistical Costs

7.2

7.5+ 0.3+5%

Depreciation &Amortization

3.4

3.4- 0.0-2%

Others17.5

18.5+ 1.0+5%

General Admin Total

64.6(26.5%)

66.6 (26.3%)+ 2.0+3%

R&D Expenses

14.5(5.9%)

15.3(6.0%)+ 0.8+6%

SG&A Expenses Total

79 179.1(32 4%)(32.4%)(32 3%)
81 9 (32.3%)
81.9

+ 2.8
28+4%

( ) %: Against net sales
2012/1/30©Terumo Corporation

8/25

Excluding
BCT & Harvest

Other Impacts on Q3 Net Income(billions of yen)

<Extraordinary loss>
Loss on sales of Olympus stocks

- 1.6
16

Loss on revaluation of Olympus stocks

- 6.6

- 8.2

<Corporate tax>
Revision of tax system- 0.5<Net Income variance analysis>
Q3 YTD
Mar. 2011
Increase in
Operating
Income27.5

Decrease in
exchange
loss

8.2
↓
5.0

Q3 YTD
Mar. 2012

Loss onsales /revaluationof stocks

Revision oftax system

2012/1/30

24 324.3©Terumo Corporation

9/25

Forecast for Mar. 2012(billions of yen)

Original Forecast

Revised Forecast

Revision383.0383.0-Operating Income

62 6 (16.3%)
62.6(16 3%)

62 6 (16.3%)
62.6(16 3%)-Ordinary Income

58.0 (15.1%)

57.0 (14.9%)-1.0

Net Income

32.5 ( 8.5%)

26.0 ( 6.8%)-6.5

Operating
Income70 0 (18.3%)
70.0(18 3%)

70 0 (18.3%)
70.0(18 3%)

Net
Income39 9 (10.4%)
39.9(10 4%)

33 4 ( 88.7%)
33.47%)

2H
Mar. 2012
US$ 75 yen
77 yenEUR 103 yen 108 yen

2HMar. 2012
US$ 75 yen
77 yenEUR 103 yen 108 yen

Net Sales

Excll. Amortizatiionof GoodwilloAverage exchange rate

2012/1/30©Terumo Corporation

10/25

Topics

1. Acquisition of Large Diameter Sheath Technology2 Establishment of Yamaguchi Factory2.

2012/1/30©Terumo Corporation

11/25

1. Acquisition of Large Diameter Sheath Technology

Sheath Provides Entry for Interventional Procedure The required diameter of sheath is varied by therapeuticinterventional devices used
 Large diameter sheath creates large puncture hole, having heavy
strain on patients

SmallDi
Diameter:t 22-33 mm

 Coiling for cerebral aneurysm
 Stenting for coronary stenosis

CerebralLarge

Sheath Diameter

Coronary

Diameter: 6-9 mm
 Valve replacement
 Stent graft deploymentAorticHeart valve<Image reference>Circulatory organs disease information service, CareNet.com, senshiniryo.net

2012/1/30©Terumo Corporation

12/25

1. Acquisition of Large Diameter Sheath Technology

Overcome Challenges to Reduce Strain on Patients
Common challenges of large diameter sheath

G tdGreatdamage on vessell potentiallyt ti llLLarge
puncturedt dhholel iincreasecause thrombosis and avulsion

the risk of bleeding and infection

To reduce such risks,

It needs to be inserted with smaller profile
2012/1/30©Terumo Corporation

13/25

1. Acquisition of Large Diameter Sheath Technology

World Only Balloon Expandable Large Sheath Onset Medical Corporation (founded in 2003), CA U.S.A.
 Folded sheath is expanded by balloon after vessel insertion Smaller sheath profile is expected to create smaller puncture hole
 Due to blood vessel stretch property, the size of puncture hole createdremains small even after pushed out by expanded sheath

Postexpansion
Preexpansion

2012/1/30©Terumo Corporation

8mm

5mm
14/25

1. Acquisition of Large Diameter Sheath Technology

Reduce Bleeding w/ Creating Smaller Punctured Hole1.

Inserted w/smaller profile

1.

2.

Expanded by balloon
to ensure large lumen

2.

3.

Less bleeding w/
smaller puncturehole

3.

Onset

Standard Sheath
2012/1/30©Terumo Corporation

15/25

1. Acquisition of Large Diameter Sheath Technology

Aim To Be Strong No.1 Player in Sheath Market
 Current Terumo’s position in sheath market

Small Diameter Sheath

Large Diameter Sheath

No 1 Global Player
No.1

Newly enter w/ Onset

Others Terumo

Aim to gain 15% ofma k t sharemarket
sha inithe future

49%※ Based on Terumo research Market: approx. 34 billion yen Market size: approx. 4.5 billion yen
 Growing at CAGR 15%2012/1/30©Terumo Corporation

16/25

2. Establishment of Yamaguchi Factory

Expand Domestic Base To Underpin Global Production
 Yamaguchi factory to possess highly advanced technologies
 Processing technology for guide wire metal alloy
 Pain management drug: new technological challenge
 Drug & Device: its technology development to be promoted inconjunction with R&D center in JP

 In BCP*, to decentralize the production bases
Currently, the factories in Japan are located closely together in
Shizuoka and Yamanashi prefectures*BCP： Business Continuity Planning
2012/1/30©Terumo Corporation

17/25

2. Establishment of Yamaguchi Factory

Production Globalization
Japanese factories
as MOTHER FACTORIESAsian factories
as PRODUCTION CENTER(Focus on advanced technologies)(Focus on mass production)

From2015
Yamaguchi

Kofu
Vietnam

Technology
Ashitaka

Fujinomiya

Transfer

UK
U.K.
Philippines
USA
U.S.A.
2012/1/30©Terumo Corporation

18/25

ReferenceConsolidated Q3 Results (Pro-forma comparison)(billions of yen)

Corresponding
period of last yr
Pro-forma basis *1Q3 YTD
Mar. 2012YoY%

Net Sales

280.4

288.9

Gross Profit

150 0 （53.5%）
150.0（53 5%）154 0 (53.3%)
154.0(53 3%) +3%

SG&A Expenses

101.8 （36.2%）

104.1 (36.0%) +2%

Operating Income

48.2 （17.3%）

49.9 (17.3%) +3%

Average Exchange Rate

US$87 yen

79 yenEUR

113 yen

111 yen+3%*1 Including BCT and Harvest
2012/1/30©Terumo Corporation

20/25

Q3 Results to Mar. 2012 Forecast(billions of yen)

M 2012 FMar.
Forecastt

Q3 YTD Results
Rlt

PProgress

N tS
NetSales
l

383 0
383.0

288 9288.9

75%

Operating Income

62.6 (16.3%)

49.9 (17.3%)

80%

Ordinary Income

57.0 (14.9%)

46.3 (16.0%)

81%

N Income
NetI

26 0 ( 8.7%)
26.0

22 0 ( 7.6%)
22.085%(US$)

77 yen79 yen(EUR)

108 yen

111 yenAverage exchange rate

2012/1/30©Terumo Corporation

21/25

Excluding
BCT & Harvest

Gross Profit, SG&A Expenses, Operating Income(%)

GrossProfit

51.7

52.0

51.6

54.2

50.8

SG&AEExpenses

32.5

34.7

31.3

33.1

32.6

19.2

17.3

20.3

21.1

18.2

Q3

Q4

Q1

Q2

Q3

OperatingIncome

Mar. 2011

Mar. 2012(Quarterly: 3 months)
2012/1/30©Terumo Corporation

22/25

Changes of Quarterly Average Exchange Rates
130

EUR(Mar.
(2011))EUR(Mar. 2012)

110117110104

US$(M 2011)
US$(Mar.
90

US$(Mar. 2012)
82
70

Q17877

Q2Q3Q4(Quarterly: 3 months)

2012/1/30©Terumo Corporation

23/25

<Reference> What’s Introducer Sheath?
A short catheter that is inserted into blood vessel to provide an access point andallow the insertion of interventional devices such as guide wire and other catheters.

Introducer sheath

Guide wire andotherinterventional
devices areinserted throughhemostasis valve

Hemostasis
valve to prevent
backflow ofblood

It is inserted into bloodvessel at groin or wrist

Blood vessel

2012/1/30©Terumo Corporation

24/25

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 ofdisclosure. 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 in economic conditions surrounding Terumo,
fluctuations of foreign exchange rates, and state of competition.
The market share information in this presentation is partly derived from our own
independent research.

2012/1/30©Terumo Corporation

25/25