Terumo Corporation
IFRS Financial Results for the Fiscal Year Ended
March 31, 2020

－1 －－2－

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

（Unit: Millions of yen）
As of
March 31, 2020

AssetsCurrent assets
Cash and cash equivalents

122,982

166,898

Trade and other receivables

128,462

131,728

Other current financial assets

1,744

397

134,106

147,147

Inventories
Current tax assets

1,745

Other current assets

11,426

12,689Total current assets

398,722460,607

Property, plant and equipment

201,986

264,407

Goodwill and intangible assets

468,885

461,506

Non-current assets

Investments accounted for using the equity
methodOther non-current financial assets

5,571

5,275

17,131

17,733

Deferred tax assets

24,62427,307

Other non-current assets

3,868

4,517

Total non-current assets

722,068

780,748

1,120,790

1,241,355

Total assets－3－

（Unit: Millions of yen）
As of
March 31, 2020

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

81,476

Bonds and borrowings

88,04450,324

Other current financial liabilities

741

6,144

10,199

11,681

236

395

Other current liabilities

50,25855,256

Total current liabilities

142,912211,845

225,135

195,870

Other non-current financial liabilities

6,607

31,802

Deferred tax liabilities

24,302

20,360Defined benefit liabilities

12,82318,45688

92

Other non-current liabilities

10,807

8,043

Total non-current liabilities

279,764

274,626

422,677

486,472

Share capital

38,716

38,716

Capital surplus

52,02951,858Treasury stock(32,381)(14,103)

Retained earnings646,223

705,765

Other components of equity(6,553)(27,423)

Current tax liabilities
Provisions

Non-current liabilities
Bonds and borrowings

Provisions

Total liabilities
EquityTotal equity attributable to the owners of theparent
Non-controlling interests

698,034

Total equity
Total liabilities and equity－4－754,81378

69698,113754,883

1,120,790

1,241,355

② Consolidated Statements of Profit or Loss
For the fiscal year ended
March 31, 2019
599,481272,984
326,497
226,334
9,801
3,327
106,637
2,111
5,876

（Unit: Millions of yen）
For the fiscal year ended
March 31, 2020
628,897
284,964
343,932
235,1444,737
2,914
110,611
1,671
5,371

(162)

(445)

102,70923,422
79,287

106,466
21,42885,037

Attributable to:
Owners of the parent
Non-controlling interests
Total profit for the period

79,470(183)
79,287

85,211(173)
85,037

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)108.70104.97113.96112.61

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

For the fiscal year ended
March 31, 201979,287（Unit: Millions of yen）
For the fiscal year ended
March 31, 2020
85,037844(1,181)(1,766)(4,499)(921)(5,681)

20,895(19,813)

(353)

204

8(500)

20,549(20,109)

19,627(25,790)

98,914

59,246

Owners of the parent

99,10059,415

Non-controlling interests(185)(169)98,914

59,246

Profit for the period
Other comprehensive income
Items that will not be reclassified to profit or loss
Changes in financial assets measured at fair value
through other comprehensive income
Remeasurement of difined benefit plan
Total items that will not be reclassified to profit orloss
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 periodTotal comprehensive income for the period
Attributable toTotal 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
capitalBalance at April 1, 2018

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

588,932

Change of the accounting principles
Balance after the adjustment(28,240)

38,71652,445(101,546)

588,986

79,470Total comprehensive income
Acquisition of treasury shares(9)

Disposal of treasury shares

155

(47)

Dividends(28,240)(1,949)128

550,490

79,470(183)

79,287

19,63019,630(2)

19,627

19,63099,100(185)

98,914(9)(9)

00(19,555)(19,555)

(107)
1,949

215

38,716550,435
54

135

Conversion of convertible bonds

Total equity

550,361(19,555)

Transfer from other components ofequity to retained earnings
Change in shares of subsidiaries due
to capital increase
Share-based payments

128

54

79,470

Other comprehensive income

Total transactions with the owners ofthe CompanyBalance at March 31, 2019

550,307

54

Profit for the period

Noncontrollinginterests

Total135

215

215

67,921

67,921(415)

69,018

(681)

(415)

69,164(22,233)

2,057

48,572

135

48,70852,029(32,381)646,223(6,553)

698,034

78

698,113（Unit: Millions of yen）
Share
capitalBalance at April 1, 2019

38,716Equity attributable to the owners of the parent
Other
CapitalTreasury
Retainedcomponents ofsurplus
stock
earnings
equity52,029(32,381)646,223

Profit for the period(6,553)

85,211

Total comprehensive income
Acquisition of treasury shares(3)Disposal of treasury shares

89

(21)

Dividends

Total equity

698,034

78

698,11385,211(173)

85,037(25,795)(25,795)

4(25,790)(25,795)

59,415(169)

59,246

85,211Other comprehensive income

Noncontrollinginterests

Total

(67)

(20,507)

(3)

(3)

00

(20,507)(20,507)

Transfer from other components ofequity to retained earnings
Change in shares of subsidiaries due
to capital increase
Share-based payments

(50)

120

82

Conversion of convertible bonds(120)

18,072

(272)

(170)

18,278(25,668)

4,924(2,636)159(2,476)51,858(14,103)705,765(27,423)754,81369754,883

Total transactions with the owners ofthe Company
Balance at March 31, 2020

(4,950)4,950
159

38,716

－

7－

41

159

194

194

17,67917,679

⑤ Consolidated Statements of Cash Flows
For the fiscal year ended
March 31, 2019

（Unit: Millions of yen）
For the fiscal year ended
March 31, 2020

102,709
44,035

106,466
52,358

162

445

293
(1,507)
2,051
(455)
(489)
(5,935)(20,144)
6,682(4,155)
123,249
1,687(1,116)(30,249)
93,571(695)(1,019)
1,828
262
114
(7,318)(17,284)
3,442
3,396
141,995
1,215(956)(24,774)
117,479(1,373)17(39,326)
1,887(15,038)(1,200)524(20,283)(74,792)

(154)
1,313
(62,316)
23(21,168)(1,512)2(902)(84,714)

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Share of the loss/(gain) of investments accounted forusing the equity method(Decrease) /increase in retirement benefit liabilities
Interest and dividend income
Interest expenses
Foreign exchange (gain)/loss(Gain)/Loss on disposal of property, plant and equipment(Increase)/decrease in trade and other receivables(Increase)/decrease in inventories
Increase/(decrease) in trade and other payables
OthersSub-totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flow from investing activities
Payments for purchase of time deposits
Proceeds from withdrawal of time deposits
Payments for purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchase of intangible assets
Payments for purchase of financial instruments
Proceeds from sale of financial instruments
Payment for acquisition of shares of subsidiaries
Net cash used in investing activities
Cash flow from financing activities
Proceeds from short-term borrowings

40,000

Repayment of long-term borrowings
Proceeds from non-control interests
Repayments of lease liabilities
Payments for repurchase of treasury stock
Payments for dividends
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year－8－

(47,764)135(346)(9)(19,555)(67,540)

159(5,638)(3)(20,507)
14,0103,912(2,859)(44,849)
167,832
122,982

43,916
122,982
166,898

5. Business Combination
For the fiscal year ended March 31, 2019
Business combinations by acquisition
Acquisition of stock of Essen Technology (Beijing) Co., Ltd., a China-based company, which became a subsidiary ofthe Company(1) Overview of the business combination①Name of the acquired company and its business
Name of the acquired company: Essen Technology (Beijing) Co., Ltd.
Business: Development, manufacture, and sale of drug-eluting stents (DES)②Main objectives for the business combination
Interventional systems market in China is predicted to increase by over 10% annually and is expected to become
the biggest market in a few years.
The Group has grown rapidly in China selling interventional products, such as guidewires and balloon catheters.
However, it has not yet offered coronary stents in that market.
As the entering the Chinese market, where the importance of domestic products is increasing, with adomestically manufactured DES helps Terumo to expand its interventional systems business, the Group acquired
Essen Technology Co., Ltd..
③Acquisition date
December 29,2018④Legal form of the acquisition
Stock acquisition with cash as consideration⑤Percentage of voting rights acquired 100%
(2) Amounts and breakdown of consideration for the acquisition(Unit: Millions of yen)
Cash and cash equivalents

12,936

Accounts payable-other

1,420

Contingent consideration

499

Total

14,855(Note 1) Contingent consideration is included in the contract. Contingent consideration may be charged for therelated future payment up to RMB310(undiscounted) million as ceiling based on specific performanceindicators of acquiree. Contingent consideration has been categorized as level 3 of the fair value
hierarchy.
(Note 2) Acquisition costs related to the business combination amounting to ¥ 458 million are recognized as an
expense in “Selling, general and administrative expenses”.

－9－

(3) Fair value of assets acquired, liabilities assumed and consideration on the acquisition date
(Unit: Millions of yen)
Fair value of consideration for the acquisition

14,855Current assets
Cash and cash equivalents

1,807Trade and other receivables

350

Inventories

448

Other current assets

49

Non-current assets
Property, plant and equipment

257

Intangible assets

4,523

Other non-current assets

573

Current liabilities(217)

Non-current liabilities(634)

Fair value of acquired assets and liabilities

7,157

Goodwill

7,698(Note 1) Consideration for the acquisition was allocated to acquired assets and assumed liabilities based on the fair valueon the acquisition date. As adjustment of the consideration for acquisition and allocation of the consideration foracquisition based on fair values of identifiable assets and liabilities had not been completed, the above amounts
were provisional as of March 31, 2019. However, in this fiscal year, the above provisional accounting has beencompleted.Therefore, assets and liabilities on the the acquisition date are revised based on the allocation of theconsideration for acquisition. The nature of major revisions is an increase in intangible assets of ¥ 4,226 million,
an increase in non-current liabilities of ¥ 634 million and a decrease in goodwill of ¥ 3,384 million.

(Note 2) Fair value of acquired receivables, contractual receivables and estimated uncollectible amountAs for the fair value of ¥350 million of the acquired trade and other receivables, the total amount of contracts is ¥413
million and the estimate of the contractual cash flows not expected to be collected at the acquisition date is ¥63 million.

(Note 3) Goodwill
Goodwill arises from the expected additional earning power in the future due to business development. Goodwill
recognized is not expected to be deductible for tax purposes.

－10 －(Note 4) Intangible assets, included in non-current assets, comprise of technologies of ¥2,941 million and trademark of¥1,575 million. Technologies are amortized on a straight-line basis over 10 years. As the trademark is continuously used infuture and the renewal of trademark is simple and convenient, the trademark is not amortized as intangible assets withindefinite useful life.

(4) Cash flow information
Payment for acquisition of shares is as follows:(Unit: Millions of yen)
Payment for acquisition ofshares
12,936

Cash as consideration for acquisition
Cash and cash equivalents held by the acquiree at(1,807)the acquisition of control
Foreign currency translation differences

89

Total

11,217(5) Revenue and net profit of the acquired company
Disclosure is omitted because the impact on the Consolidated Statement of Profit or Loss for the fiscal year ended
March 31,2019 is insignificant.

(6) Impact on consolidated financial statements under the assumption that the business combination was completed at thebeginning of the year (pro-forma information)
Disclosure is omitted because the impact is insignificant.

For the fiscal year ended March 31, 2020
There is no significant business combination for the fiscal year ended March 31, 2020.

－11 －6. Segment information
Reportable segment information(1) Main products belonging to each reportable segment

Business segments

Sub-segments

Main productsInterventional Systems (TIS)

Angiographic guidewires, Angiographiccatheters, Introducer sheaths, Vascular closure
devices, PTCA balloon catheters, Coronary
stents, Self-expanding peripheral stents, IVUS,
Imaging catheters, etc.

Neurovascular

Coils and stents for treating cerebral aneurysm,
Aspiration catheters and clot retrievers fortreating ischemic stroke, etc.

Cardiovascular

Oxygenators, Cardio-pulmonary bypass system,
etc.

Vascular Graft

Artificial vascular grafts, Stent grafts

Hospital Systems

Infusion pumps, Syringe pumps, Solution sets,
Syringes, I.V.solutions, Pain management
products, Nutritious food, Adhesion barriers,
Blood glucose monitoring systems, Digital
thermometers, Blood pressure monitors, etc.

Alliance

Contract manufacturing of prefilled syringes,
Devices to pharmaceutical companies for use indrug kits (Prefillable syringes, Needles forpharmaceutical packaging business) , etc.

-Blood bags, Automated blood collection system,
Automated blood component processing system,
Pathogen reduction technology, Automated,centrifugal apheresis system, Cell expansion
system, etc.

Cardiac and Vascular Company

General Hospital Company

Blood and Cell Technologies
Company－12 －(2)Revenue and operating results of the reportable segments of the Group are described below.
（Unit: Millions of yen）

For the fiscal year ended March 31, 2019

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

Adjustments（Note）

Amountrecorded onconsolidated
financialstatements

CardiacandVascularCompanyGeneral
HospitalCompany

Blood andCell
Technologies
Company

328,500

165,766

104,984599,251230

599,481

80,913

26,82915,673

123,417(1,288)122,128(8,376)(15,018)384(14,633)(6,642)

Total(857)

Operating profit

106,637

Finance income

2,111

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
method(5,876)Pre-tax profit

102,709(162)

Other items
Depreciation and20,206
9,711
13,47943,398636
44,035amortization
Net increase of
tangible and intangible
35,01812,325
7,422
54,767
6,07860,845
noncurrent assets（Note）１．Amounts in ‘Adjustments’ are as follows:(1) ¥230 million adjustment to revenue from sales to external customers is mainly proceeds from outward
temporary staffing that is not attributable to reportable segments.
(2) ¥(1,288) million adjustment to segment profit consists of ¥(1,238) million for “inventories” and ¥(49)
million for “others”.
２．¥(857) million for Non-recurring profit or loss mainly includes ¥1,567 million for insurance revenue about
hurricane in Puerto Rico and ¥(2,040) million for the change in fair value of contingent consideration.
３．Amortization expenses of acquired intangible assets in business combinaions are included in “Depreciationand amortization”.

－13 －（Unit: Millions of yen）

For the fiscal year ended March 31, 2020

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

Adjustments（Note）

Amountrecorded on
consolidated
financialstatements

CardiacandVascularCompanyGeneral
HospitalCompany

Blood andCell
TechnologiesCompany350,550

170,963

107,156

628,670226

628,897

86,85525,24815,053

127,157(2,158)

124,998(8,208)(15,117)(549)(15,667)(6,908)

Total

1,280

Operating profit

110,611

Finance income

1,671

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
method(5,371)Pre-tax profit

106,466

Other items
Depreciation andamortization
Net increase oftangible and intangible
noncurrent assets(445)

25,222

12,25014,54152,014344

52,35847,813

14,343

22,20584,362

5,147

89,510(Note) １．Amounts in ‘Adjustments’ are as follows:(1) ¥226 million adjustment to revenue from sales to external customers is mainly proceeds from outward
temporary staffing that is not attributable to reportable segments.
(2) ¥ (2,158) million adjustment to segment profit consists of ¥ (173) million for “inventories” and ¥ (1,929)
million for preparation expenses to comply with Medical Device Regulation in EU.
２．¥ 1,280 million Non-recurring profit or loss mainly includes ¥ 1,181 million insurance revenue about
hurricane in Puerto Rico in the fiscal year ended March 31, 2018 , ¥ (1,514) million for businessreorganization expenses and ¥2,239 million for the change in fair value of contingent consideration.
３．Amortization expenses of acquired intangible assets in business combinaions are included in “Depreciationand amortization”.

－14 －(3) Changes in name of reportable segment
The segment which was previously stated as “Blood Management Company” has been changed to “Blood and Cell
Technologies Company” from the fiscal year ended March 31, 2020. This change in name does not affect the segment
information.
The name of reportable segment for the fiscal year ended March 31, 2019 has also been stated as “Blood and Cell
Technologies Company”.

Material subsequent events
There are no significant subsequent events as of March 31, 2020.

－15 －