TERUMO CORPORATION
Half Year Financial Results for FYE/ Mar. 2008

1Sales and Profits EnjoyedDouble-digit Growth (Unit: Billion yen)Half Year

Half Year

FYE/Mar. 2007

FYE/Mar. 2008

Rate of change

Net Sales

132.7

150.8

14%

Gross Profit (%)

73.3 (55.2%)

82.9 (54.9%)

13%

S.G.A Expenses (%)

44.6 (33.6%)

49.3 (32.7%)

11%

Operating Income (%) 28.6 (21.6%)

33.5 (22.2%)

17%

Ordinary Income (%)

29.1 (21.9%)

34.0 (22.5%)

17%

Net Income (%)

18.4

22.9

24%

Average
Exchange rate

US$EUR

115 yen
146 yen

119 yen162 yen

3.5% yen depreciation
11.2% yen depreciation
2

Net Sales (by Region)(Unit: Billion yen)

132.7
11.4

150.8+18.2

15.1+3.8

28.9+4.2

27.3

+4.6

24.7
22.8

73.8

79.5

Growth Rate
Growth rate

13.7% (10.3%)

Asia & Others 33.0% (23.8%)
Americas16.8% (13.3%)

Europe20.0%(8.8%)+5.7
Outside of Japan 21.2% (13.6%)

Half Year
FYE/Mar. 2007

Half Year
FYE/Mar. 2008

Sales Outside of Japan Rate

44%

47%Japan

7.7%
Excluding impact offoreign exchange
3Net Sales (by Product Group)(Unit: Billion yen)

150.8+18.2

24.0+1.5

132.7
22.5
37.6
30.3
14.1
65.8

15.2

74.1+7.4+1.1+8.2

Growth Rate
Growth rate

13.7%

CV & Vascular grafts

6.5%

Interventional products

24.3%

Home health care products 8.0%
General hospital products 12.5%

Half Year
FYE/Mar. 2007

Half Year
FYE/Mar. 2008

4

S.G.A Expenses(Unit: Billion yen)

49.3

+4.7

7.8+0.4
+0.5

44.6
7.8
4.4
3.8
15.4

13.2
Half Year
FYE/Mar. 2007

4.8
4.4

R&D

17.4

15.0+2.0+1.9(+0.2%)

Sales promotion and advertising (+8.0%)
Logistics(+13.6%)

Personnel(+12.8%)

Others(+14.0%)

Half Year
FYE/Mar. 2008

S.G.A Expenses Rate

33.6%(% in change)

32.7%▲0.9pt5Upward Revision(Unit: Billion yen)

FYE/Mar. 2007

FYE/Mar. 2008

Rate of change

Net Sales

276.4

305.0

10%

Operating Income (%)

58.5 (21.2%)

65.0 (21.3%)

11%

Ordinary Income (%)

58.0 (21.0%)

65.0 (21.3%)

12%

Net Income (%)

37.2

42.0

13%

Average Exchange Rate
US$EUR

117 yen
150 yen

115 yen
159 yen

1.9% yen appreciation
5.8% yen depreciation
6

Topics“About domestic and overseasperformance”

7

Domestic

DPC-related products
driving general hospital product business
50(Unit: billion yen)

<DPC-related products><DPC-relatedproducts>

40
Safetyproducts

30+GeneralIV solution

2010<Plugs to prevent
infection><General I.V.
solution>

DPC: A fixed per-day reimbursement system

0Interim March 06

Interim March 07

Interim March 08※ Domestic sales of general hospital products (excluding blood transfusion business)based on the case-mix classification in Japan8

Further increase in DPC-introduced hospitals(Hospitals)

1600

1,433

1400

April 2008Most hospitals preparing
for DPC will become
DPC-introduced

12001000

731

800600400200

1440
FY05

FY06

Alr eady DPC-Intr oduced Hospitals

FY07Pr epar ing for DPC Hospitals 9

Out of Japan

Both interventional and general hospital products showed growth◆Interventional products‐Strengthened sales force tailored for each region‐Expanding sales areas of PTCA balloons and stents◆General hospital products‐B2B in Europe & America; Wide range of products in Asia
(billion yen)

3

Interventional products

2
General Hospitalproducts

10EuropeAmericasAsia※Increase/decrease of sales in the first half compared with that of the same period in the previous fiscal year10Business development in emerging countries
(%)

60

35%

4020015%

North
北米
America

6060404020Latin
中南米
America

19%

25%

28%

200
Western
西欧
Europe56%

Eastern
東欧ロ
Europe0China &Asia
アジア
中国ｲﾝﾄﾞ
India<North and Latin America><Eastern Europe / Russia><China/India>*Terumo Chile established*Russia representative officeopened*Sales power strengthened(China)*Started direct sales ofinterventional products<South Africa>*Representative office opened11※ Increase/decrease rates of sales with that of the same period in the previous fiscal year

Toward even further growth12Expansion of product line up in America (1)◆Runthrough NS (guidewire for PTCA)- Meeting a wide range of doctor’s needs- Launched in July 2007
- Acquired top share in Japan, and targeting to win top position in America

U.S.
U.S.market
marketscale:scale:
1212billion
billionyenyenAsahi Intecc 8%
8%

35%

7%

42%

ABBOTT
BSC
J&JOthers※As of July 2007
(Terumo estimate)13

Expansion of product line up in America (2)◆Hydrosoft (highly flexible swelling coil)- The first product was launched in August 2007; series to be expanded- Access devices under development in Japan for strengthening
competitive edge with package sales

Pre-Expansion
Pre-Expansion

Post-Expansion
Post-Expansion

14

Clinical trials of new large-scale products
expanding (1)◆Drug Eluting Stent, "Nobori“‐Clinical trials have started in Japan‐Highly appreciated in the academic world「CLINICA」
September 21 200715
European Society of Cardiology 2007

Favorable clinical data at TCT meeting
held in America
Excerpts from document published at TCT07 ( PhaseⅡ 243 cases)

Number of cases
Late loss *Restenosis
Stent thrombosis

NoboriControl group

153

90

0.11mm0.32mm

0.7%
0%

5.4%
4.4%

* Optimum intima hypertrophy is said to be 0.10 to 0.20mm
Remarks:
・Good results in terms of both effectiveness and safety
・Late loss within optimal range
・Stent thrombosis rate was zero-percent

16

Clinical trials of new large-scale products
expanding (2)◆"DuraHeart“ (Left Ventricular Assist System)- Clinical trial application in America completed- Preparing for clinical trials in Japan17

New Product in Japan
PTCA balloon catheter◆Compatible with different needs, supporting a wide range of different blood-vessels◆Sales started on October 1, aiming to take the number-one share in the second half

HighlyHighlydilatable
dilatable

Compatible

Dilates hard,
calcified blood-vessels

HighlyHighlyflexible
flexiblefor
fordelivery
delivery

Reaches fine,
tortuous blood-vessels
18

Strengthen the power for growth(Internal growth & M&A/Alliance)
M&A
M&A◆Stent grafts◆Vascular grafts◆Cerebral coils

InternalInternal growthgrowth◆DuraHeart◆Risk management medical devices◆Guidewire◆Prefilled syringes◆DES◆Blood glucose monitoring devices

Alliances
Alliances◆Olympus◆Kirin◆Kawasumi Laboratories,Asahi Kasei, etc.
19

Growth in all business fields
STeP UP

Unit: billion yen

350

CAGR

300

Home Healthcare

6.8%

250
Cardiac & Vascular 16.0%

200
150

General Hospital

6.1%

100
50
Total 9.9%0
Mar.05Mar.06Mar.07Mar.08 (Forecast) 20

Summary◆Achievement of 300 billion yen is near athand, forecast revised upward◆Unique strategies promoted, taking
advantage of domestic changes◆Preparations in full-swing in view of thenext mid-term plan21

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 historicaltrends. 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.
22