TERUMO CORPORATION
Financial Results for FYE/Mar.2008

April 30th, 2008

1I.

Financial Results for FYE/Mar.2008

II. Review of STeP UP (FY05-07)
III. New mid-term business plan (FY08-10)

2

Financial Results for FYE/Mar.20083

Sales and profits enjoyeddouble-digit growth(Unit: billion yen)
Rate of change

FYE/Mar.2007

FYE/Mar.2008

Net Sales

２７６.４

３０６.４

Gross Profit (%)

１５３.３（55.5%） １６８.２（54.9%）

10%

S.G.A Expenses (%)

９４.９（34.3%） １０１.３（33.1%）

7%

11%

Operating Income (%) ５８.５（21.2%）

６６.９（21.8%）

15%

Ordinary Income (%)

５８.０（21.0%）

６４.２（21.0%）

11%

Net Income

３７.２

４３.4

17%

１１７ yen
１５０ yen

1１４ yen ２．２％ yen appreciation
１６２ yen ７．７％ yen depreciation

Averageexchange rate
4

＄ＥＵＲ

FYE/Mar.2008 Financial situation(Unit: billion yen)

Net Sales

Operating Income
Operating Income Rate

Net Income＋１４.５％＋１６.５％＋１０.８％
+29.9

276.4

+8.5

306.4

+6.1
21.8％
21.2％

58.5

566.9

37.2

43.4

FYE/MarFYE/MarFYE/MarFYE/MarFYE/MarFYE/Mar

2007

2008

2007

2008

2007

2008

Net Sales (by Region)(Unit: billion yen)
＋６．５％

Outside Japan total+10.0＋１６．１％

FYE/Mar.

FYE/Mar.

（＋１３．２％ excluding impactof foreign exchange）

2007

2008

Outside Japan rate
４５％→４７％
162.5
152.5

＋１７．４％＋１１．５％＋２４．０％（＋１０．１％）（＋１３.７％）（＋１８.８％）

+6.1

+8.4

48.4

56.8

52.7

+5.5

58.8
22.9

Japan
6Europe

Americas

28.4

Asia

Net Sales (by Product group) (Unit: billion yen)
＋９.２％
+12.7

151.0

＋２０.５％＋４.９％

FYE/MarFYE/Mar.

2007

2008

＋６.６％

+13.1

138.2

+2.277.1+1.9

64.0

47.7
45.57General
hospital
products

Interventional
products

CV andvasculargrafts

30.7
28.8

Home healthcare products

Ⅱ. Review of STeP UP (FY05-07)

8

Achieved double-digit sales growth(Unit: billion yen)400

10% per annum

306.4

300

200

1000Mar.2005
9Mar.2006

Mar.2007

Mar.2008

CAGR
Consolidated 10%
Japan 4%
Outside Japan 18%

Operating Income also achieved
double-digit growth(Unit: billion yen)75

12% per annum

66.9

50

250Mar.2005
10Mar.2006

Mar.2007

Mar.2008

11

Achieved all-time sales growth speed

500 billion
2 years
3 years
5 years 306.4 billion
100 billion yen
growth in 12 years 200 billion
Mar2008
12400 billion
Mid-term targetMar2011

Mar2013

Sales to reach 400 billion yen
in FYE/Mar.2011
12% per annum

400400 billion yen

4%
306.4

318.0

300

200

Negative impact
・Foreign exchange
・NHI price revisions

1000Mar.2008

Mar.2009

Mar.2010

Mar.2011

114

100

100

100

1euro = 162

155

155

155

1$
13=

Operating income to reach 85 billion yen
in FYE/Mar.2011
10012% per annum
752%66.9

85 billion yen

68.050
Negative impact
・Foreign exchange
・NHI price revisions

250Mar.2008

Mar.2009

Mar.2010

Mar.2011

= 114

100

100

100

1euro = 162

155155155

1$
14

To become Terumo with a sense ofpresence in the world.

3 strategies
・Reorganization of internal companies
・Challenge toward innovation
・Promote globalization

15

Reorganization of internal companies
Cardiac & Vascular

Cardiac & Vascular

General Hospital

General Hospital

Blood Transfusion

Home Health Care
16Consumer Health Care

Toward sales outside Japan exceeding 50% oftotal sales
Outside Japan rate ５1％(Unit: billion yen)

400

CAGR
■Asia 11%300■Americas 9%200■Europe 16%100■Japan 6%0Mar.2007 Mar.2008 Mar.2009 Mar.2010 Mar.2011

FY07 FY08 FY09 FY1017

Strategies of Cardiac & Vascular company• Apply existing core technologies to new domains• Continuous introduction of new products• Increase production capacity for growth• Aggressive expansion of business in emerging
countries
Aiming to be No.3 in the global market
18

Applying core technologies tonew domains
Micro- Guidewire
Micro-Catheter
Guiding-Cathter
Existing core technologies
Access devices
Devices for diagnosis

HeartStent‘’Misago’’

Devices for treatment

Micro-Wire
19

BrainPeripheral
coil‘’AZUR’’

Peripheral
LiverKidneyLower extremities

Target share : Double-digit in PCI market
Guiding Catheter
Market : ２５ billion

PTCA Balloon
８４ billion yen

FYE/Mar,08

FYE/Mar,11

FYE/Mar,08

FYE/Mar,117%10%7%11%

PTCA-GuideWire
３４ billion yen

20

IVUS
２５ billion yen

FYE/Mar,08

FYE/Mar,11

FYE/Mar,08

FYE/Mar,119%20%6%12%※Market size in Mar, 08 （Terumo data）

General Hospital company strategies• Integration of Drugs and Devices• Expansion of B2B business on a global level• Enhancement and improvement of existingproducts for better safetyAiming to be No.3 in the global market
21

Blood Transfusion company strategies• Business expansion in the two segments.
Whole bloodcollection

Aphaeresis
collection(TACSI)
Automatic centrifugal
separation system

22

Market size

FY07
100 billion yen

FY12
130

Terumo share

16%27

Market size

90 billion yen

110

Terumo share

3%(TACURA)New aphaeresissystem

10

Blood Transfusion company strategies• Opportunities for further growth- Cell therapy and NRC (Neo Red Cell)

Aiming to be No.1
in the global market in the long-term

23Consumer Healthcare company strategies• Business with general consumers• Brand image• Preventive medical-care• Marketing outside Japan24

Capital investment of 70 billion yen (FY08-10)
Expansion of production capacity centering on
interventional productsPlants in Europe and America
Increasing local production of catheters

Vietnam Plant
Responding to increasing demandfor medical equipment andinterventional products
Operation start: 1Q of 2008
25

New Ashitaka factory
Responding to increasing demand forinterventional products
Construction start: September 2008
Operation start: Mid 2009 (planned)
Target markets: Entire world

R&D 57 billion yen (FY08-10)
Clinical trials of new products
・Nobori in Japan・DuraHeart in Japan and the U.S.
・Anaconda in the U.S.

Products under development
・NRC, Nanocapsules
・Next-generation DES
26

FY08: Increasing sales and profits by reducing such negative
impact of foreign exchange and NHI price revisions(Unit: billion yen)

FYE/Mar.08 FYE/Mar.09

27

GrowthSales

３０６.４

３１８.０

４％

Operating
ProfitR&D
expensesCapitalInvestment

６６.９

６８.０

２％

１５.８

１８.０

１４％

１５.７

２４.０

５３％

Reference28

Interventional products

PTCA Balloon ‘’Hiryu’’ is No.1 Share in Japan◆Contributing to medical economic improvement‐Supports a variety of needs with a single unit, completing
treatment with a small number of catheters
Jun, 07

Mar,08Terumo１９％OthersTerumo２６％OthersTarget in Mar, 11
Share 35% in Japan

BSX

Goodman29※share （Terumo data）

BSX

Goodman

Next target
Europe and Asia

Interventional products

Ultrasound diagnostic system in Japan・High-resolution ultrasound diagnostic systemwith superior trackability toward the target lesion.
・Expanding market due to DES problem.
FYE/Mar. 11 Global 40 billion yen
・Sales target
FYE/Mar.09 : 3 billion yen ⇒ FYE/Mar.11 : 5・Developing product OFDI

30

Catheter''ViewIT''

Monitor''VISIWAVE''Blood Transfusion products

Growing Market : 300 billion
Billion yen
3,500

350

3,000

300

2,500

Aphaeresi
成分採血MEMEFilter
フィルター商品
Bag with filter
フィルター付きBag w/o filter
血液バッグ

250

2,000

200

300
3,000億円
230

2,450億円

CAGR：5％180

1,900億円
1,400億円

140

1,500億円

150

Aphaeresis
collection

1,500

150

Whole bloodcollection

1,000

100

CAGR: 6％

500

5000
31

9500
05
９５年
００年０５年※Market size in Mar, 08 （Terumo data）

10１０年

15１５年

Blood Transfusion productsTACSI :Terumo Automated Centrifuge & Separator Integration

TACSI

Current procedures

NewCentrifuge ＋ Separation

TACSI

Collaboration with Andreas Hettich.

Machine

The automation of the blood component production
eliminates the most sensitive manual steps in the blood
component process. Often these steps affect the qualityof the components produced and lead to possible productlosses. Furthermore the automation not only reduces themanual operations, but considerably simplifies theprocesses and limit the equipments required for thisprocess. It shall prove itself to be very cost-effective.

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IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: CCD@terumo.co.jp

This document contains forward-looking statements that reflect
management’s current views with respect to certain future events andfinancial performance. Actual results may differ materially from thoseprojected or implied in the forward-looking statements and from historical
trends. Furthermore, certain forward-looking statements are based uponassumptions of future events that may not prove to be accurate. Factorsthat could cause actual results to differ materially from those projected orimplied in any forward-looking statements include, but are not limited to,changes in overall economic conditions, fluctuations of foreign exchange
rates, and intensifying price competition in the markets for our products.

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