Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2015
February 03, 2015
Exchange where listed: TSE

Name of listed company: TERUMO CORPORATION(URL http://www.terumo.com/): 4543: Yutaro Shintaku, President and Representative Director: Masayuki Maruta, General Manager, Corporate Communication Dept.
: +81 / 3-6742-8550

Company code number
Representative:
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1. Consolidated Financial Highlights for the Nine Months ended December 31, 2014
(From April 1, 2014 to December 31, 2014)(1) Consolidated operating results(Notes: The amounts shown below ignore values of less than a million yen)

Net sales

Operating income(Millions of yen)

(Millions of yen)%

Net income

Ordinary income(Millions of yen)%

(Millions of yen)%363,201
52,86958,689 17.6
5.2
9.6
345,260 16.7
48,251
49,919 23.4
13.2
December 2014: 91,204million yen (9.2%) December 2013: 83,517million yen (104.4%)

Nine months ended December, 2014
Nine months ended December, 2013

(Notes) Comprehensive income:%

33,426 (9.4)
36,896 49.3

Net income per share,
fully dilutedNet income per share
(Yen)

(Yen)

87.40
88.02
97.16
97.15
(Notes) Terumo Corporation excuted a two-for-one stock split on its common shares effective April 1, 2014.
Net income per share and Net income per share, fully diluted have been adjusted retrospectively to reflect the effect of the stock split.
Nine months ended December, 2014
Nine months ended December, 2013

(2) Consolidated financial position
Total assets

Equity ratio

Net assets(Millions of yen)

(Millions of yen)

Net assets per share%(Yen)

1,027,606
578,726
56.3
As of December 31, 2014832,814
496,245
59.6
As of March 31, 2014
(Notes) Shareholders' equity: December 31, 2014: 578,663 million yen March 31, 2014: 496,225 million yenp
excuted a two-for-one stock split
p on its common shares effective April
p 1,, 2014.
Terumo Corporation
Net asset per share has been adjusted retrospectively to reflect the effect of the stock split.

1,523.82
1,306.72

2. Dividends
Cash dividends per share
3rd quarter2nd quarter
4th quarter

1st quarter
Year ended March, 2014
Year ending March, 2015
Year ending March, 2015 (forecast)(Notes) Revise of dividends forecast : None

total(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

－－

29.00
14.50

－－

29.00

58.00

14.50

29.00

Terumo Corporation excuted a two-for-one stock split on its common shares effective April 1, 2014.
Cash dividends per share for the year ending March, 2015 and the year ending March, 2015 (forecast) have reflected this stock split.

3. Consolidated Forecast for the Year Ending March 2015 (From April 1, 2014 to March 31, 2015)
Operating income

Net sales(Millions of yen)%

(Millions of yen)

Ordinary income%(Millions of yen)Net incomeper share

Net income%

62,000
488,000
64,000Year ending March, 2015
4.4
(2.0)
(2.8)
(Notes) Forecast for fiscal year ending March, 2015 which was announced on November 5, 2014 has not been revised.
(Assumed exchange rate for fiscal year ending March, 2015: USD1=JPY100, EUR1=JPY140)(Millions of yen)

%

(Yen)

33,500

(1.7)

88.22

Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these areforecasts 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 to actual results include, but are not limited to, changes in
economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.

14. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of December 31, 2014

AmountAmount(Assets)%

I Current assets

310,98537.3%
446,440

Cash and deposits

95,618

119,658

Noteｓ and accounts receivable-trade

101,520

109,398

Short-term investment securities－90,000

Inventories

93,966105,324Deferred tax assets

12,34013,474

Other

8,933

10,265

Allowance for doubtful accounts(1,394)(1,681)

43.5

II Noncurrent assets

520,332

62.5

577,900

56.2

1. Property, plant and equipment

157,755

18.9

176,791

17.2

Buildings and structures

54,21561,379Machinery, equipment and vehicles

43,91645,885

Land

21,75722,048

Lease assets

406

839

Construction in progress

27,97436,346

Other

9,483

10,291

2. Intangible assets

304,756

36.7

338,150

Goodwill

154,161

170,588

Customer relationships

93,968105,185

Other

56,626

3. Investments and other assets

57,82062,376
6.9

62,958Investment securities

37,954

Deferred tax assets

5,323

264

Retirement benefit asset

2,573

5,260

Other

11,969

III Deferred assets
Total assets

2

32.9

6.1

44,631

12,802

1,496

0.2

3,265

0.3

832,814100.0

1,027,606

100.0

(Millions of yen)
As of March 31, 2014

As of December 31, 2014

AmountAmount(Liabilities)
I%

Current liabilities

160,936

Notes and accounts payable-trade38,147

Short-term debt
Current portion of long-term debt
Lease obligations%
153,536

423

4,652

5,440

225

162

40,00040,000

Income taxes payable

18,401

9,706

Deferred tax liabilities

94

63

Provision for bonuses

4,849

2,715

109

90

Notes and accounts payable-facilities

8,425

7,787

Other

45,76949,167

Noncurrent liabilities

175,632

Bonds payable

40,00040,000－100,245

Long-term debt

76,76984,658

Lease obligations

299

276

47,79552,159Convertible bond-type bonds with subscription rights to sharesDeferred tax liabilities
Provision for directors' retirement benefits

15.0

37,979260

Current portion of bonds payable

Provision for directors' bonuses

II

19.3

21.1

295,34366

66

Retirement benefit liability

3,124

4,395

Asset retirement obligations

220

232

28.7

Other

7,354

Total liabilities

336,568

40.4

448,880

43.7

IShareholders' equity

444,396

53.4

469,059

45.6

Capital stock

38,716

38,716

Capital surplus

52,103

52,103Retained earnings

353,600

378,272

Treasury stockII

13,308(24)

Accumulated other comprehensive income

51,828Valuation difference on available-for-sale securities

11,269Deferred gains or losses on hedges

(33)
6.2

109,603
15,481(2)－Foreign currency translation adjustments

43,377

96,949

Accumulated adjustments for retirement benefit(2,816)

III Stock subscription rights

10.7(2,827)

200.0

620.0

Total net assets

496,24559.6

578,726

56.3

Total liabilities, net assets

832,814100.0

1,027,606

100.0

3

(2) Consolidated Statements of Income(Millions of yen)
For nine months ended

For nine months ended

December 31, 2013December 31, 2014

AmountAmount%%I

Net sales

345,260

100.0

363,201

II

Cost of sales

166,59948.3

172,52247.5

Gross profit

178,66151.7

190,67852.5

130,40937.7

137,808

37.9

48,251

14.0

52,869

14.6

9,848

2.7

4,028

1.1

58,689

16.2

2,465

0.7

III Selling, general and administrative expenses
Operating income

100.0

IV Non-operating income
Interest income

287

378

Dividends income

226

247

Royalty income

81124

Foreign exchange gains

V4,6648,098

Equity in earnings of affiliates

9610

Other776

6,131

1.8

989

Non-operating expenses
Interest expenses

1,124

896

Sales discounts

479

513

Loss on disposal of inventories

75

Other

2,784

Ordinary income

239
4,464

1.3

49,919

14.5

2,378

VI Extraordinary gains
Gain on sales of noncurrent assets

7

Gain on transfer of businesses
Gain on adjustment of account payable
Settlement received

490

299

－

－

1,974

6,000

6,307

1.8－

VII Extraordinary losses
Loss on disposal of noncurrent assets

216

419

Impairment loss

561

1,450

Loss on liquidation of subsidiaries and affiliates－549

Restructuring loss－

6,420Directors' retirement benefits

33－

Loss on liquidation of business

881

Income before income taxes and minority interests
Income taxes-current

18,041

Income taxes-deferred(434)

Income before minority interests
Minority interests in income
Net income

4

1,693

0.5

54,53315.8

17,606

5.1

36,926

10.7

－

8,839

2.5

52,315

14.4

18,8895.2

33,426

9.2

21,133(2,243)

30

0.0－

－

36,896

10.7

33,426

9.2

(3) Consolidated Statements of Comprehensive Income
For nine months ended
December 31, 2013
AmountI Income before minority interests
II Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Adjustments for retirement benefit
Share of other comprehensive income of associates
accounted for using equity method
Comprehensive income
Attributable to:Shareholders of Terumo Corporation
Minority interests

36,92633,4264,450(16)
42,158－4,211
253,571(10)(2)

46,59083,517
83,530(13)

5(Millions of yen)
For nine months ended
December 31, 2014
Amount3

57,77891,204
91,204－

(4)Notes<Significant accounting policies in preparing the consolidated financial statements>
Changes in accounting policy(Adoption of Accounting Standard for Retirement Benefits)
Effective from the first quarter of the fiscal year ending March 31, 2015, the Company and its consolidated domestic subsidiaries
have applied the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012 (hereinafter, the “StatementNo. 26”)) and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012 (hereinafter, the“Guidance No. 25”)), and the method of calculating retirement benefit obligations and service costs are revised, with the method of
attributing benefits to accounting periods changed from the straight‐line basis to the benefit formula basis, and the method ofdetermination of the discount rate changed to several weighted average discount rates which are set at the time of each expected
retirement benefit payment.
In accordance with the article 37 of the Statement No. 26, the effect of the change in calculation methods of retirement benefit
obligations and service costs arising from initial application has been recognized in “Retained earnings” at the beginning of the firstquarter of the fiscal year ending March 31, 2015.
As a result, “Retirement benefit assets” and “Retained earnings” have increased by ¥3,509 million and ¥2,258 million, respectively,
at the beginning of the current third quarter of the fiscal year ending March 31, 2015. “Operating income”, “Ordinary income” and“Income before income taxes and minority interests” have increased by ¥474 million, respectively, for the current third quarter.

6

5. Segment Information[Reportable Segments](1) The Third Quarter of Fiscal Year Ended March 31, 2014(Millions of yen)
Reportable Segments

Cardiac &VascularCompanyGeneral
HospitalCompany

Blood
Management
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

152,839

123,91168,541

345,292(31)－－－－－－

Sales total

152,839

123,91168,541

345,292(31)

345,260

Segment income (Excl. Amortization)

32,01016,215

13,77562,000(1,618)

60,382

Segment income (loss)

30,587

16,215

3,068

49,870(1,618)48,251

20.9

13.1

20.1

18.0

－

17.5

Internal sales

Segment income(%)(Excl. Amortization)

345,260

Notes: 1. The (1,618) million yen adjustment to segment income is the sum of (626) million yen for inventories and (992)
million yen for others.
2. Segment income is adjusted to be consistent with “Operating income” shown on the quarterly consolidated
statements of income.
(2) The Third Quarter of Fiscal Year Ending March 31, 2015

(Millions of yen)

Reportable Segments
Cardiac &VascularCompany

GeneralHospitalCompany

Blood
Management
Company

Adjustment

Total

Subtotal

Sales and operating income:Sales to customer

168,041

122,466

72,693363,201－－－－－－－

Sales total

168,041

122,466

72,693363,201－

363,201

Segment income (Excl. Amortization)

34,08816,497

14,22564,811972

65,783

Segment income (loss)

32,677

16,4972,722

51,897972

52,869

20.3

13.5

19.6

17.8

－18.1

Internal sales

Segment income(%)(Excl. Amortization)

363,201

Notes: 1. The 972 million yen adjustment to segment income is the sum of (478) million yen for inventories and 1,450 million
yen for others.
2. Segment income is adjusted to be consistent with “Operating income” shown on the quarterly consolidated
statements of income.
(Changes in the category of segments)As a result of reclassification in performance management among overseas subsidiaries, “Harvest Technologies Corporation”
and “Harvest Technologies GmbH” have been transferred from “Cardiac & Vascular Company” to “Blood ManagementCompany” since October 1, 2014. This change is reflected retrospectively.
(Changes in the name of segments)“Cardiac & Vascular Business”, “General Hospital Business” and “Blood Management Business” changed their names to“Cardiac & Vascular Company”, “General Hospital Company” and “Blood Management Company”, respectively, from the firstquarter of fiscal year ending March 31, 2015. This change is reflected retrospectively.
(Changes in the composition of segments)
Sales and expenses related to the domiciliary oxygen system business and the domiciliary infusion pump business whichwere transferred, and the next generation implantable left ventricular assist system business which was entered into a
strategic alliance in the previous fiscal year are allocated to “Adjustment.”
As a result of these changes, compared to the previous classification, the segment income of “Cardiac & Vascular Company”
and “Blood Management Campany” for the third quarter of fiscal year ended March 31, 2014 have increased by ¥505 millionand ¥26 million ,respectively. The segment income of “General Hospital Company” and “Adjustment” have decreased by ¥3million and ¥528 million, respectively.
(Note) Main products belonging to each business segment
Business segments
Sub-segments
Interventional Systems

Cardiac & Vascular Company

Neurovascular

Neuro interventional coils, etc.

CV Systems

Oxygenerators, Cardio-pulmonary bypasssystem, etc.

Vascular Graft

General Hospital Company

Main products
Angiographic catheters, PTCA balloon
catheters, Coronary stents

Artificial vascular grafts, Stent grafts

General Hospital Products

Syringes, Needles, Blood collection tubes,
Solution sets, I.V.catheters, Infusion pumps,
Syringe pumps, etc.

DM and Consumer Healthcare

Blood glucose monitoring systems, Digital
thermometers, Blood pressure monitors, etc.

Pharmaceutical and Nutrition

I.V.solutions, Nutritious food, CAPD systems,
etc.

D&D

Prefilled syringes, Pain management systems
etc.

－Blood bags, Automated blood collection system,
Therapeutic apheresis system, Cell expansion
system, etc.

Blood Management Company

7