Financial Results for the First Quarter of Fiscal Year Ending March 31, 2015
August 6, 2014
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:
Please address all communications toPhone

1. Consolidated Financial Highlights for the Three Months Ended June 30, 2014
(From April 1, 2014 to June 30, 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)%

114,945
Three months ended June, 2014
3.5
111,090 15.9
Three months ended June, 2013
(Notes) Comprehensive income: June 2014: 3,717million yen (-86.7%)

Ordinary income(Millions of yen)

Net income%(Millions of yen)%

16,114
14,449 11.7
20.9
12,940 (0.3)
13,329 (13.9)
June 2013: 27,849million yen (－%)

8,394
8,956(6.3)
9.8%

Net income per share,
fully diluted

Net income per share
(Yen)

(Yen)

22.11
22.10
Three months ended June, 2014
23.58
－Three months ended June, 2013
(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.
(2) Consolidated financial position
Total assets

Net assets(Millions of yen)

Equity ratio(Millions of yen)

Net assets per share%(Yen)812,659496,718
61.1
As of June 30, 2014
496,245832,814
59.6
As of March 31, 2014
(Notes) Shareholders' equity: June 30, 2014: 496,689 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.

1,307.95
1,306.72

2. Dividends
Cash dividends per share
2nd quarter
4th quarter3rd quarter

1st quarter
Year ended March, 2014
Year ending March, 2015
Year ending March, 2015 (forecast)(Notes) Revise of dividends forecast : Nonetotal

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

－－

29.00

－

29.00

58.00

14.50

－

14.50

29.00

Terumo Corporation excuted a two-for-one stock split on its common shares effective April 1, 2014.
The forecast of Cash dividends per share has reflected this stock split.

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

Operating income

Net income
per share

Net income%(Millions of yen)

%

(Yen)

236,000
28,00027,000
4.4
(8.1)
(8.7)
64,000
488,000
62,000Year ending March, 2015
4.4
(2.0)
(2.8)
(Notes) Forecast for fiscal year ending March, 2015 which was announced on May 8, 2014 has not been revised.
(Assumed exchange rate for fiscal year ending March, 2015: USD1=JPY100, EUR1=JPY140)

16,00037,500(17.8)
10.0

42.13
98.75

(Millions of yen)%

(Millions of yen)

Ordinary income

Half year ending September, 2014%

(Millions of yen)

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. Financial Statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2014

As of June 30, 2014

AmountAmount(Assets)%

I Current assets

310,98537.3%
295,915

Cash and deposits

95,61885,030Noteｓ and accounts receivable-trade

101,520

97,397

Inventories

93,966

95,612

Deferred tax assets

12,340

8,909

Other

8,933

10,323

Allowance for doubtful accounts(1,394)36.4(1,358)II Noncurrent assets

520,332

62.5

514,858

63.4

1. Property, plant and equipment

157,755

18.9

159,851

19.7

Buildings and structures

54,21553,083

Machinery, equipment and vehicles

43,91643,087

Land

21,757

21,672406

809

Construction in progress

27,974

31,828

Other

9,483

Lease assets

2. Intangible assets

304,756

9,370
36.7

295,866

Goodwill

154,161

149,538

Customer relationships

93,96891,183

Other

56,62655,144

3. Investments and other assets

57,8206.9

59,140Investment securities

37,954

39,103

Deferred tax assets

5,323

2,287

Retirement benefit asset

2,573

5,800

Other

11,96911,949

III Deferred assets
Total assets

236.4

7.3

1,496

0.2

1,885

0.2

832,814100.0

812,659

100.0

(Millions of yen)
As of March 31, 2014

As of June 30, 2014

AmountAmount(Liabilities)
I%
160,936

Notes and accounts payable-trade38,14736,392

260

4,256

4,652

4,573

Short-term debt
Current portion of long-term debt
Lease obligations

139,477

225

197

Current portion of bonds payable

40,00040,000

Income taxes payable

18,401

3,372

Deferred tax liabilities

94

4

Provision for bonuses

4,849

2,622

109

27

Provision for directors' bonuses

II

19.3

%

Current liabilities

Notes and accounts payable-facilities

8,425

7,271

Other

45,76940,759Noncurrent liabilities

175,632

Bonds payable

40,00040,000Long-term debt

76,76979,146

Lease obligations

21.1

176,463299

281

47,79545,14866

66

Retirement benefit liability

3,124

3,786

Asset retirement obligations

220

219

7,354

7,814

Deferred tax liabilities
Provision for directors' retirement benefits

Other

17.2

21.7

Total liabilities

336,56840.4

315,941

38.9

I

Shareholders' equity

444,396

53.4

449,537

55.3

Capital stock

38,716

Capital surplus

52,103

52,103Retained earnings

353,600

358,747

Treasury stockII

38,716(24)

Accumulated other comprehensive income

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

11,269Deferred gains or losses on hedges

(30)
6.2

47,152(2)

2Foreign currency translation adjustments

43,37737,904

Accumulated adjustments for retirement benefit(2,816)(2,978)

III Stock subscription rights

5.8

12,224

200.0

280.0

Total net assets

496,24559.6

496,718

61.1

Total liabilities, net assets

832,814100.0

812,659100.03

(2) Consolidated statements of income(Millions of yen)
For the three months ended

For the three months ended

June 30, 2013

June 30, 2014

AmountAmount%%I

Net sales

111,090

100.0

114,945

100.0

II

Cost of sales

54,09948.7

54,23847.2

Gross profit56,990

51.3

60,70652.8

43,661

39.3

44,591

38.8

13,32912.0

16,114

14.0

385

0.4

III Selling, general and administrative expenses
Operating income
IV Non-operating income

V

Interest income

82

124

Dividends income

5664

Royalty income

23

17

Foreign exchange gains

577－

Equity in earnings of affiliates

81

24

Other

144

966

0.8

154

Non-operating expenses
Interest expenses

368

Sales discounts

300

166

172

Foreign exchange losses－773

Loss on disposal of inventories

43185

Other777

Ordinary income

1,355

1.2

12,940

11.6

268

0.3

618

2,0501.8

14,449

12.6

160.0

VI Extraordinary income
Gain on sales of noncurrent assets

6

Gain on transfer of businesses

262

16－

VII Extraordinary expenses
Loss on disposal of noncurrent assets

9331

Impairment loss

557

369

Directors' retirement benefits

33

Income before income taxes and minority interests
Income taxes-current

2,370

Income taxes-deferred

1,266

Income before minority interests
Minority interests in income
Net income

4600

0.5

12,608

11.4

－

700

0.6

13,765

12.0

2,632
3,637

3.3

5,371

4.7

8,971

8.1

2,738

8,394

7.3150.0－－

8,956

8.1

8,394

7.3

(3) Consolidated statements of comprehensive income
For the three months ended
June 30, 2013
AmountIII

Income before minority interests
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

8,971

8,394

3,192
(8)
15,694－9544(5,473)
(161)

(0)

18,877
27,84927,857(8)

5(Millions of yen)
For the three months ended
June 30, 2014
Amount(0)(4,676)
3,717
3,717
－

(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 first quarter of the fiscal year ending March 31, 2015. “Operating income”, “Ordinary income” and “Income
before income taxes and minority interests” have increased by ¥158 million, respectively, for the current first quarter.

65. Segment Information[Reportable Segments](1) The First 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

50,10839,446

21,520111,075

14－－－－－－

Sales total

50,10839,446

21,520111,075

14

111,090

Segment income (Excl. Amortization)

9,283

4,785

4,102

18,171(831)

17,340

Segment income (loss)

8,797

4,785

577

14,160(831)

13,329Segment income(%)(Excl. Amortization)

18.5

12.1

19.1

16.4

Internal sales

111,090

15.6－Notes: 1. The (831) million yen adjustment to segment income is the sum of (257) million yen for inventories and (574)
million yen for others.
2. Segment income is adjusted to be consistent with operating income shown on the quarterly consolidated income
statement.
(2) The First Quarter of Fiscal Year Ending March 31, 2015

(Millions of yen)
Reportable Segments

Cardiac &VascularCompanyGeneral
HospitalCompany

Blood
ManagementCompany

Adjustment

Total

SubtotalSales and operating income:Sales to customer

54,52838,00522,411

114,945－－－－－－－

Sales total

54,52838,00522,411

114,945－

114,945

Segment income (Excl. Amortization)

11,419

4,570

4,214

20,20441

20,246

Segment income (loss)

10,9404,570

561

16,073

41

16,114

20.9

12.0

18.8

17.6

－

17.6

Internal sales

Segment income(%)(Excl. Amortization)

114,945

Notes: 1. The 41 million yen adjustment to segment income is the sum of (20) million yen for inventories and 61 million yenfor others.
2. Segment income is adjusted to be consistent with operating income shown on the quarterly consolidated incomestatement.
(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 which weretransferred, 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 forthe first quarter of fiscal year ended March 31, 2014 has increased by ¥100 million. The segment income of General HospitalCompany and “Adjustment” have decreased by ¥2 million and ¥97 million, respectively.

(Note) Main products belonging to each business segment
Sub-segments
Business segments
Interventional SystemsCardiac & Vascular Company

General Hospital Company

Main products
Angiographic catheters, PTCA balloon
catheters, Coronary stents

Neurovascular

Neuro interventional coils, etc.

CV Systems

Oxygenerators, Cardio-pulmonary bypasssystem, etc.

Vascular Graft

Artificial vascular grafts, Stent grafts

General Hospital Products

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

Pharmaceutical and Nutrition

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

D&D

Prefilled syringes, Pain management systems
etc.

DM and Consumer Healthcare

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

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

Blood Management Company7