Terumo Corporation
IFRS Financial Results for the Second Quarter ofthe Fiscal Year Ending March 31, 2020

－1 －IFRS Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2020
November 7, 2019
Exchange where listed: TSE

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

Company code number
Representative:
Please address all communications toPhone

1. Consolidated Financial Highlights for the Six Months Ended September 30, 2019
(From April 1, 2019 to September 30, 2019)(1) Consolidated operating results(Notes: The amounts shown below ignore values of less than a million yen)

RevenueSix months ended September, 2019
Six months ended September, 2018

Operating profit(Millions of yen)%

(Millions of yen)

307,278
284,9977.8
0.1

59,15047,582

Basic Earnings per share

Profit before tax% (Millions of yen)

24.3
(16.8)

58,06544,527

Profit for the period
attributable to theowners of the parent

Profit for the period%(Millions of yen)

30.4
(21.6)

45,621
34,389% (Millions of yen)32.7(16.4)

45,711
34,454

Total comprehensive
income for the period%(Millions of yen)%32.7(16.3)

20,22472,317(72.0)
36.8

Diluted Earnings per share

(Yen)

(Yen)

Six months ended September, 2019
61.44
60.42
Six months ended September, 2018
47.82
45.45
(Notes)Adjusted operating profit: September 2019: 67,044 million yen September 2018: 55,296 million yen
Terumo Corporation (the “Company”) conducted a two-for-one stock split for its common stock effectively on April 1, 2019. Basic earnings per share and diluted earnings per share have been
calculated on the assumption that the stock split had been carried out at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets

As of September 30, 2019
As of March 31, 2019

Equity attributable to theowners of the parent

Total equity

Equity attributable to theowners of the parent ratio(Millions of yen)

(Millions of yen)

(Millions of yen)%

1,148,417
1,120,790

718,788698,113718,741
698,034

62.6
62.3

2. Dividends
Cash dividends per share
1st quarter2nd quarter(Yen)

3rd quarter(Yen)

4th quarter(Yen)

Total(Yen)

(Yen)

－－
Year ended March, 2019
27.00
27.00
54.00
－
Year ending March, 2020
14.00－
Year ending March, 2020 (forecast)
14.00
28.00
(Notes) Revise of dividends forecast : None
The Company conducted a two-for-one stock split for its common stock effectively on April 1, 2019. For the years ended March 2019, the amounts of dividends before the stock split are recorded.
For the second quarter and year-ended dividends in the year ending March 2020 (forecast), the amounts of dividends are recorded in consideration of the effects after the stock split.

3. Consolidated Forecast for the Year Ending March, 2020 (From April 1, 2019 to March 31, 2020)
Revenue(Millions of yen)

Adjusted operating profit%(Millions of yen)%

Profit for the year
attributable to the ownersof the parent

Operating profit(Millions of yen)

Earnings per share%(Millions of yen)

%

(Yen)

Year ending March, 2020
635,000
5.9
124,000
1.5
109,000
2.2(Notes) 1)Revise of forecast for fiscal year ending March, 2020 : None
Assumed exchange rate for fiscal year ending March, 2020: USD1=JPY108, EUR1=JPY1232)Earnings per share is calculated by taking consideration effects of the conversion of convertible bond in the six months.
3.

81,0001.9

108.55

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 onlimited 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 in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.

－2 －4. Consolidated Financial Statements① Consolidated Statements of Financial Position
As ofMarch 31, 2019

（Unit: Millions of yen）
As of
September 30, 2019

AssetsCurrent assets
Cash and cash equivalents

122,982

117,405

Trade and other receivables

128,462

122,501

Other current financial assets

1,744

1,248

Inventories

134,106

142,084

Other current assets

11,426

11,274

Total current assets

398,722394,513

Property, plant and equipment

201,986

242,213

Goodwill and intangible assets

468,885

458,032

Non-current assets

Investments accounted for using theequitymethod
Other non-current financial assets

5,571

6,090

17,131

18,387

Deferred tax assets

24,624

24,622Other non-current assets

3,868

4,557

Total non-current assets

722,068

753,903

1,120,790

1,148,417

Total assets－3 －（Unit: Millions of yen）
As of
September 30, 2019

As ofMarch 31, 2019
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payables

81,476

77,238

Bonds and borrowings－741

10,00010,19910,840236

236

Other current liabilities

50,25846,646

Total current liabilities

142,912150,764

225,135

202,382

Other non-current financial liabilities

6,607

32,721

Deferred tax liabilities

24,302

23,274

Defined benefit liabilities

12,823

10,80888

86

Other non-current liabilities

10,807

9,591

Total non-current liabilities

279,764

278,864

422,677

429,629

Share capital

38,716

38,716

Capital surplus

52,02951,803

Treasury stock(32,381)(21,607)

Retained earnings

646,223

681,358

Other components of equity(6,553)(31,527)

698,034

718,74178

46698,113718,788

1,120,790

1,148,417

Other current financial liabilities
Current tax liabilities
Provisions

5,803

Non-current liabilities
Bonds and borrowings

Provisions

Total liabilities
EquityTotal equity attributable to the owners of theparent
Non-controlling interests
Total equity
Total liabilities and equity－4 －② Consolidated Statements of Profit or Loss
For the six months ended
September 30, 2018284,997
130,409
154,588
110,717
5,482
1,771
47,582
1,008
4,005（Unit: Millions of yen）
For the six months ended
September 30, 2019
307,278
135,815
171,463
113,9443,094
1,462
59,150
915
1,909

(57)

(92)

44,527
10,13734,38958,065
12,44345,621Attributable to:
Owners of the parent
Non-controlling interests
Total profit for the period

34,454(64)
34,38945,711(89)
45,621

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)

47.82
45.45

61.44
60.42

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Share of profit (loss) of investments accounted
for using the equity method
Profit before tax
Income tax expenses
Profit for the period－5 －③ Consolidated Statements of Comprehensive Income

Profit for the period

For the six months ended
September 30, 2018
34,389（Unit: Millions of yen）
For the six months ended
September 30, 201945,621169(292)－(450)

169(742)

37,497(24,509)

271

(80)

(10)

(65)

37,758(24,655)

37,927(25,397)

72,31720,224

72,382

20,310(65)(85)

72,317

20,224

Other comprehensive income
Items that will not be reclassified to profit or loss
Changes in financial assets measured at fairvalue through other comprehensive income
Remeasurement of difined benefit plan
Total items that will not be reclassified to profit
or loss
Items that are or may be reclassified subsequently
to profit or loss
Exchange differences on translation of foreign
operations
Cash flow hedges
Cost of hedging
Total items that are or may be reclassified
subsequently to profit or loss
Other comprehensive income/(loss) for the period
Total comprehensive income for the period
Attributable toOwners of the parent
Non-controlling interests
Total comprehensive income for the period(Note)

Items in the above statement are net of tax.

－6 －④ Consolidated Statements of Changes in Equity（Unit: Millions of yen）
Share capital
Balance at April 1, 2018
Change in the accounting
principles
Balance after the adjustment

38,716Equity attributable to the owners of the parent
Other
CapitalTreasury
Retainedcomponents ofsurplus
stock
earnings
equity52,445(101,546)

588,932－－－54

NoncontrollinginterestsTotal

Total equity(28,240) 550,307

128

550,43554－

54(28,240) 550,361

128

550,490－

38,71652,445(101,546)

588,986

Profit for the period

－

－

－

34,454－34,454(64)

34,389Other comprehensive income

－

－

－

－

37,92837,928(0)37,927

Total comprehensive income
Acquisition of treasury shares－－－

34,45437,92872,382(65)

72,317

－

－

(3)

－

－

(3)

－

(3)

Disposal of treasury shares

－－

131

(42)

(88)

0－

0Dividends－－－(9,549)－(9,549)－(9,549)

－－－

－－－

81

81－

－

－－－

108

108－

108

－

(397)

65,681(645)－

64,637－64,637－(397)

65,809(10,238)

19

55,192

81

55,27338,71652,047(35,737)

613,2029,707 677,936

144

678,081

Change in shares of subsidiaries
due to capital increase
Share-based payments
Conversion of convertible bonds
Total transactions with theowners of the Company
Balance at September 30, 2018

（Unit: Millions of yen）
Share capital
Balance at April 1, 2019

Equity attributable to the owners of the parent
Other
CapitalTreasury
Retainedcomponents ofsurplus
stockearnings
equity38,71652,029(32,381)646,223

Profit for the period

－

－

－

45,711Other comprehensive income

－－

－

－

Total comprehensive income
Acquisition of treasury shares－－－

45,711(25,401)

－－

(1)

－

Disposal of treasury shares

－－

65

(20)

Dividends－－－(10,029)

－

－

－

－

－

－

－

(152)

－

(73)

－

(226)

38,71651,803

Transfer from other componentsof equity to retained earnings
Change in shares of subsidiaries
due to capital increase
Share-based payments
Conversion of convertible bonds
Total transactions with theowners of the Company
Balance at September 30, 2019

Noncontrollinginterests

Total

Total equity(6,553) 698,034

78

698,11345,711(89)

45,621(25,401) (25,401)

3(25,397)

20,310(85)

20,224

－

(1)

－

(1)

(44)

－

0－

0－ (10,029)－(10,029)

(450)

450

－

－－－－－

53

53

120

82

20

71－

71

10,589(159)－

10,356－

10,356

10,774(10,577)

426

397

53

450

(21,607)681,358(31,527) 718,741

46

718,788－7 －5. Segment information
Reportable segment information
Revenue and operating results of the reportable segments of the Group are described below.
For the second quarter of the fiscal year ended September 30, 2018
（Unit: Millions of yen）
Reportable Segments

Revenue
Revenue from sales
to external customers
Segment Profit(Adjusted operatingprofit)(Adjustment item）
Amortization of
intangible assets
acquired throughbusiness combinations
Non-recurring profit orloss (Note)2

Adjustments(Note)1

Amountrecorded on
consolidated
financialstatements

284,866131

284,997

6,988

55,21580

55,296(4,163)(7,361)(124)(7,485)

Cardiac andVascularCompanyGeneral
HospitalCompanyBloodManagementCompany

153,464

81,22850,173

34,472

13,754(3,197)－Total(228)

Operating profit

47,582Finance income

1,008

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
methodPre-tax profit(4,005)(57)
44,527(Note）１．Amounts in ‘Adjustments’ are as follows:(1) ¥131 million adjustment to revenue from sales to external customers is mainly proceeds from outward
temporary staffing that is not attributable to reportable segments.
(2) ¥80 million adjustment to segment profit consists of ¥(162) million for “inventories” and ¥243 million for“others”.
２．¥(228) million Non-recurring profit or loss mainly includes ¥1,102 million insurance revenue about hurricane
in Puerto Rico in 2017 and ¥(1,734) million for the change in fair value of contingent consideration related toacquisition of Sequent Medical, Inc..

－8 －For the second quarter of the fiscal year ended September 30, 2019
（Unit: Millions of yen）
Reportable Segments

Revenue
Revenue from sales
to external customers
Segment Profit(Adjusted operatingprofit)（Adjustment item）
Amortization ofintangible assets
acquired throughbusiness combinations
Non-recurring profit orloss (Note)2

Adjustments(Note)1

Amountrecorded on
consolidated
financialstatements

307,168110

307,278

6,686

66,457587

67,044(4,100)(7,618)(228)(7,847)

Cardiac andVascularCompanyGeneral
HospitalCompany

Blood
Management
Company

172,597

82,81551,75647,177

12,592(3,518)－Total(47)

Operating profit

59,150Finance income

915

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
method(1,909)Pre-tax profit

58,065(92)(Note）１．Amounts in ‘Adjustments’ are as follows:(1) ¥110 million adjustment to revenue from sales to external customers is mainly proceeds from outward
temporary staffing that is not attributable to reportable segments.
(2) ¥587 million adjustment to segment profit consists of ¥202 million for “inventories” and ¥385 million for“others”.
２．¥(47) million Non-recurring profit or loss mainly includes ¥1,167 million insurance revenue about hurricane
in Puerto Rico in 2017 and ¥(894) million for business reorganization expenses.

－9 －