Consolidated Financial Results
for the Second Quarter Ended September 30, 2022
Terumo Corporation〔IFRS〕

November 10, 2022

Company name: TERUMO CORPORATION
Listing:
Tokyo Stock Exchange
Securities code:
4543
URL:
https://www.terumo.com/
Representative:
Shinjiro Sato, President and CEO
Inquiries:
Kenichi Hata, General Manager, Investor Relations Dept.
Telephone:+81-3-6742-8550
Scheduled date to file quarterly securities report:
November 14, 2022
Scheduled date to commence dividend payments:
December 5, 2022
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for Securities analysts, Institutional
investors)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 toSeptember 30, 2022)(1) Consolidated operating results (cumulative)
RevenueSix months ended
September 30,
2022
September 30,
2021

Operating profit

Profit before tax

Millions ofyenMillions ofyenMillions ofyen%

403,31617.0

55,977 (15.0)

54,624 (16.3)

344,63721.7

65,85765,282

Basic earnings
per share
Six months ended
September 30,
2022
September 30,
2021(Percentages indicate year-on-year changes.)

%

57.5

%

60.6

Profit attributableto owners of theparentProfit for theperiodMillions ofyen%Millions ofyen%

40,321 (19.3)

40,321 (19.3)

186,667

221.0

49,98849,98858,146

209.0%

Millions of
yen

Total
comprehensive
income57.4

57.0

Diluted earnings
per share
Yen

Yen

53.37

53.35

66.11

66.07

(Note) Adjusted operating profit September 2022: 70,429 million yen

September 2021: 74,137 million yen(2) Consolidated financial position
Total assets
As ofTotal equity

Equity attributable toowners of the parent

Ratio of equity
attributable to owners of
the parent to total assets

Millions of yen

Millions of yen

Millions of yen

September 30, 2022

1,658,931

1,171,105

1,171,105

70.6%

March 31, 2022

1,473,693

1,012,313

1,012,313

68.7

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

－

16.00

－

19.00

Fiscal year ending
March 31, 2023
(Forecast)Fiscal year-end

Total

Yen

Yen

－

18.00

34.00

－

19.00

38.00

(Note) Revision from the dividend forecast, which is published in the most recent: Yes
The company revises second quarter-end and year-end dividends per share for the fiscal year ending March2023 from 18yen to 19yen.
Please refer to the November 10, 2022 press release, “Terumo Revises Interim Dividend Distribution andYear-End Dividends Forecast for Fiscal Year Ending March 31, 2023.”
3. Consolidated Forecast for the Fiscal Year Ending March, 2023 (From April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)
Adjusted operating
profitRevenue
Fiscal year ending
March, 2023

Profit for the year
attributable to ownersof the parent

Operating profit

Earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

775,000

10.2

151,000

12.3

132,000

13.8

100,000

12.6

133.88(Note) Revision of forecast for the fiscal year ending March, 2023: None
The Company resolved to repurchase its own shares at the board of directors meeting held on May 12,2022. Basic earnings per share is calculated by taking into consideration effects of the situation of
acquisition of them.
• Assumed exchange rate for fiscal year ending March, 2023: USD1=JPY130, EUR1=JPY137

*Notes(1) Changes in significant subsidiaries during the current quarterly consolidated cumulative period (changes in
specified subsidiaries resulting in changes in the scope of consolidation): None
New － Company (Company Name) －, Excluded － Company (Company Name) －(2) Changes in accounting policies and changes in accounting estimates(i) Changes in accounting policies required by IFRS: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None
(3) Number of shares outstanding (common stock)(i) Number of outstanding shares at the end of
the period (including treasury shares)

As of September 30,
2022

759,521,040 shares As of March 31, 2022

759,521,040 shares(ii) Treasury shares at the end of the period

As of September 30,
2022

6,354,109 shares As of March 31, 2022

3,194,976 shares(iii) Average number of shares during theperiod (cumulative quarterly)

Six months ended
September 30, 2022

Six months ended
September 30, 2021

756,100,350 shares

755,432,665 shares* Quarterly financial statements are not subject to quarterly reviews by certified accountants or audit firms.
* Explanation on appropriate use of financial results forecasts and other special notes
1. Forward-looking statements, including earnings forecasts, contained in these disclosure materials are based on
currently available information and assumptions believed to be reasonable by management. This is not apromise or guarantee by Terumo that it will achieve these goals. In addition, actual results may differ
significantly due to several factors. For the assumptions that are the premise of the earnings forecast and theprecautions for using the earnings forecast, refer to [Attachment], page 5, "1. Overview of Financial Results
for the First Half of the Fiscal Year Ending March 31, 2023 (3) Forecasts, including the Consolidated
Financial Results for the Fiscal Year Ending March 31, 2023".
2. Adjusted operating profit factors out amortization expense for intangible assets obtained during acquisitions
and one-off income and expenses from operating profit. In addition, adjusted operating profit is consistent
with segment profit. We are disclosing adjusted operating profit as we are using it as a performance indicator.

[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

 Table of contents of attached materials
1. Overview of Financial Results for the First Half of the Fiscal Year Ending March 31, 2023 ............................... 2(1) Overview of Consolidated Business Results ..................................................................................................... 2(2) Overview of Consolidated Statement of Financial Position .............................................................................. 5(3) Forecasts, including the Consolidated Financial Results for the Fiscal Year Ending March 31, 2023 ............. 5
2. Condensed Consolidated Financial Statements ..................................................................................................... 6(1) Condensed Consolidated Statement of Financial Position ................................................................................ 6(2) Condensed Consolidated Statement of Profit or Loss and Condensed Consolidated Statement ofComprehensive Income .................................................................................................................................. 8(3) Condensed Consolidated Statement of Changes in Equity.............................................................................. 10(4) Notes Pertaining to Condensed Consolidated Financial Statements ................................................................ 11(i) Going Concern Assumption ........................................................................................................................... 11(ii) Segment Information .................................................................................................................................... 11(iii) Assets Held for Sale .................................................................................................................................... 14(ⅳ) Impairment of Non-Financial Assets........................................................................................................... 14(v) Subsequent Events ....................................................................................................................................... 15－ 1 －[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

1. Overview of Financial Results for the First Half of the Fiscal Year Ending March 31, 2023
(1) Overview of Consolidated Business Results
In the first half of the current fiscal year (from April 1 to September 30, 2022), the Group’s sales trended
strongly in general amid the recovery in medical demand which had declined in the previous fiscal year due tothe COVID-19 pandemic, as well as the positive impact by yen depreciation. Operating profit declined year on
year due to the inflation on manufacturing cost.
Financial results for the first half are as follows:(Unit: Millions of yen)
Growthexcluding impactof FX
translations (%)

For the six
months ended
September
30, 2021

For the six
months ended
September
30, 2022

Revenue344,637

403,31617.0

5.1

Gross profit

186,244

206,992

11.1

2.0

Adjusted operating profit

74,13770,429

(5.0)

(9.6)

Operating profit

65,85755,977(15.0)(16.3)

Profit before tax

65,282

54,624(16.3)－

Profit for the period

49,98840,321(19.3)－

Profit for the period
attributable to owners of theparent49,98840,321(19.3)－

Growth (%)

Revenue by geographic areas for the first half is as follows:(Unit: Millions of yen)
For the six
months ended
September
30, 2021

For the six
months ended
September
30, 2022Japan

102,412101,235

(1.1)

(1.1)

Europe68,307

77,181

13.0

5.2

Americas106,343

138,096

29.9

7.1

China

30,12438,371

27.4

8.0

Asia and others

37,44948,43029.3

14.3

Overseas total

242,225

302,080

24.7

7.8

Total

344,637

403,31617.0

5.1

Geographic areas－ 2 －Growth (%)

Growthexcluding impactof FX
translations (%)

[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

Revenue
Revenue totaled ¥403.3 billion, an increase of 17.0% versus the same period in the previous fiscal year.
In Japan, overall revenue declined 1.1% year on year as the recovery in medical demand lagged due to theimpacts of the seventh wave of COVID-19.
Revenue overseas increased 24.7% year on year driven by double digit growth at all three companies amid therecovery in medical demand. Revenue growth rate excluding the impacts of foreign exchange rates increased
across all geographic regions, scoring the highest in Asia and others at 14.3%, with the comprehensive overseas
growth rate reaching 7.8%.
ProfitGross profit increased 11.1% year on year to ¥207.0 billion from the effects of increased revenue. However, due
to rising the costs by inflation, gross profit % of sales declined.
Therefore, sales promotion activities have almost normalized after slowing during the COVID-19 pandemic in
the previous fiscal year, resulting in adjusted operating profit 5.0% declined year on year to ¥70.4 billion.
Similarly, operating profit, profit before tax and profit for the period attributable to owners of the parent eachdeclined.
Adjusted operating profit is a non-IFRS performance indicator that we disclose. Adjusted operating profit factors
out amortization expense for intangible assets obtained during acquisitions and one-off income and expenses
from operating profit. In addition, adjusted operating profit is consistent with segment profit.
Adjusted operating profit is being used as an indicator for corporate management to grasp earnings performancein each business as a part of our goal to achieve sustainable growth in the mid- to long-term. We believe this isalso effective data for individuals using our financial statements to assess the Terumo Group’s earnings.

－ 3 －[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

Revenue results of the reportable segments are as follows:
The reportable segment which was previously named “General Hospital Company” was changed to “Medical
Care Solutions Company” from the previous fiscal year. This change in name does not affect the segment
information. In accordance with this change, the name of the reportable segment for the previous second quarter
was also changed to “Medical Care Solutions Company”.
(Unit: Millions of yen)

Revenue

For the six
months ended
September
30, 2021
194,341

For the six
months ended
September
30, 2022
235,405

21.1

Growthexcluding impactof FX
translations (%)
6.1(Japan)25,00524,917

(0.4)

(0.4)

(Overseas)

169,335

210,487

24.3

7.1

Revenue

91,96193,8052.0(1.1)(Japan)71,72670,749

(1.4)

(1.4)

(Overseas)

20,23423,056

13.9

(0.1)

Revenue

58,21073,98027.1

11.6(Japan)

5,555

5,444

(2.0)

(2.0)

(Overseas)

52,65568,53630.2

13.1

Segment
Cardiac and
VascularCompany
Medical Care
SolutionsCompany
Blood and Cell
Technologies
Company

Growth (%)

Cardiac and Vascular Company
Global revenue increased 21.1% over the same period of the previous fiscal year to ¥235.4 billion.
In Japan, overall revenue declined slightly year on year as the recovery in medical demand lagged due to theimpacts of the seventh wave of COVID-19. Despite this, Vascular Graft division posted a substantial increase inrevenue from the launch of a new product.
Overseas, revenue increased 24.3% year on year amid the recovery and growth of medical demand as well as
strong sales across Cardiac and Vascular Company underpinned by the new product of Vascular Graft division.
Medical Care Solutions Company
Global revenue increased 2.0% over the same period of the previous fiscal year to ¥93.8 billion. In Japan,
revenue was down slightly amid the lagging recovery in medical demand, despite the increase in Pharmaceutical
Solutions division sales and sales of pharmaceuticals and adhesion barrier product of Hospital Care Solutions
division. Overseas, revenue was strong, rising by 13.9%.
Blood and Cell Technologies Company
Global revenue increased 27.1% to ¥74.0 billion. In Japan, sales declined year on year, impacted by the lagging
recovery in medical demand. Overseas, sales were jumped 30.2% year on year, driven by the recovery intransfusion demand in Asia and others and strong demand for therapeutic apheresis systems in Europe and North
America.
Furthermore, we began selling our plasma donation system in the United States in the second quarter.

－ 4 －[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

(2) Overview of Consolidated Statement of Financial Position
Total assets stood at ¥1,658.9 billion, an increase of ¥185.2 billion. This was mainly owing to an increase inproperty, plant and equipment of ¥34.5 billion and goodwill and intangible assets of ¥68.1 billion due to theimpacts of yen weakness in foreign exchange rates as well as investment in manufacturing facility and new IT
systems.
Total liabilities came to ¥487.8 billion, an increase of ¥26.4 billion. This was mainly attributed to the increasein bonds and borrowings of ¥13.7 billion and other current liabilities of ¥6.8 billion due to the aforementioned
foreign exchange rates impact.
Total equity was ¥1,171.1 billion, an increase of ¥158.8 billion. This mainly reflects an increase from posting
profit for the period of ¥40.3 billion, while the booking of other comprehensive income associated with theaforementioned foreign exchange rates impact resulted in a ¥146.3 billion increase, which offset the decreaseof ¥14.4 billion from the acquisition of treasury shares and the decrease of ¥13.6 billion from dividends fromretained earnings.
(3) Forecasts, including the Consolidated Financial Results for the Fiscal Year Ending March 31, 2023
At present, we must continue to monitor risks such as uncertainty about subsequent waves of COVID-19
infections and other impacts caused by the infections, such as a drop in demand, supply chain disruptions,rising manufacturing costs, and reduced operation levels at the plants, etc. Nevertheless, we plan to focus onlaunch and expansion of highly value-added products and solutions that will boost the quality and efficiencyof healthcare, along with further improvement to manufacturing costs, and effective use of selling, general andadministrative expenses.

－ 5 －[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

2. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position（Unit: Millions of yen）
As of
September 30, 2022

As ofMarch 31, 2022
AssetsCurrent assets
Cash and cash equivalents

205,251

212,550

Trade and other receivables

135,998

144,515

Other current financial assets

63

290

198,536

235,316

Current tax assets

778

918

Other current assets

18,08624,446

558,713618,039

Assets held for sale

－

5,331

Total current assets

558,713623,370

Property, plant and equipment

333,864

368,399

Goodwill and intangible assets
Investments accounted for using
the equity method
Other non-current financial assets

514,801

582,932

4,133

3,725

25,937

41,665

Deferred tax assets

20,19822,424

Other non-current assets

16,043

16,414

Total non-current assets

914,979

1,035,561

1,473,693

1,658,931

Inventories

Sub-total

Non-current assets

Total assets－ 6 －[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

（Unit: Millions of yen）
As of
September 30, 2022

As ofMarch 31, 2022
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payables

81,54582,344

Bonds and borrowings

1,121

11,324

Other current financial liabilities

7,228

7,414

Current tax liabilities

14,104

19,951

499

395

Other current liabilities

73,22280,055Sub-total
Liabilities directly associated withassets held for sale
Total current liabilities

177,721

201,485－776

177,721202,261

Bonds and borrowings

224,875

228,344

Other non-current financial liabilities

30,297

31,172

Deferred tax liabilities

12,746

11,526Retirement benefit liabilities

5,811

5,278

113

136

Other non-current liabilities

9,813

9,106

Total non-current liabilities

283,658

285,564

461,379

487,826

Share capital

38,716

38,716

Capital surplus

51,921

51,923

Treasury shares(6,229)(20,428)

Retained earnings

846,978

876,498

Other components of equity
Total equity attributable to owners of
the parent
Total equity

80,926

224,395

1,012,313

1,171,105

1,012,313

1,171,105

1,473,693

1,658,931

Provisions

Non-current liabilities

Provisions

Total liabilities
EquityTotal liabilities and equity－ 7 －[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

(2) Condensed Consolidated Statement of Profit or Loss and Condensed Consolidated Statement ofComprehensive Income(Condensed Consolidated Statement of Profit or Loss)（Unit: Millions of yen）
For the six months ended
For the six months ended
September 30, 2021
September 30, 2022
Revenue344,637
403,316
Cost of sales
158,393
196,323
Gross profit
186,244
206,992
Selling, general and administrative expenses
120,215
146,770
Other income
1,128
3,277
Other expenses
1,299
7,522
Operating profit
65,85755,977
Finance income
439
929
Finance costs
1,342
1,978
Share of profit/(loss) of investments
326
(303)
accounted for using the equity method
Profit before tax
65,282
54,624
Income tax expenses
15,29414,303
Profit for the period
49,98840,321Attributable to:
Owners of the parent
Total profit for the period

49,98849,98840,32140,321

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

66.11
66.07

53.37
53.35

－ 8 －

[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

(Condensed Consolidated Statement of Comprehensive Income)

Profit for the period

For the six months ended
September 30, 2021
49,988（Unit: Millions of yen）
For the six months ended
September 30, 2022
40,321

265

1,889

15

918

280

2,808

7,734

143,340

64

452

78

(254)

7,878

143,538

8,158

146,346

58,146

186,667

58,146

186,667

58,146

186,667

Other comprehensive income
Items that will not be reclassified to profit orloss
Changes in financial assets measured at fairvalue through other comprehensive income
Remeasurements of defined benefit plans
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 offoreign operations
Cash flow hedges
Cost of hedging
Total items that are or may be reclassified
subsequently to profit or loss
Total other comprehensive income/(loss)
for the period
Total comprehensive income for the period
Attributable to:
Owners of the parent
Total comprehensive income for the period(Note) Items in the above statement are net of tax.

－ 9 －[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

(3) Condensed Consolidated Statement of Changes in Equity

Share
capitalBalance as of April 1, 2021
Profit for the period
Other comprehensive income
Total comprehensive income
Acquisition of treasury shares
Disposal of treasury shares
Dividends
Transfer from othercomponents of equity toretained earnings
Share-based payments
Conversion of convertible
bonds
Total transactions with owners of
the parent
Balance as of September 30,
2021（Unit: Millions of yen）
Total

(2,123) 856,662－
49,988
8,158
8,158
8,158
58,146－(1)(25)
0－ (11,340)

Total equity

38,716－－－－－－

51,829
－
－
－
－
(4)
－

(6,838)
－
－
－
(1)
30
－

775,078
49,988－49,988－－(11,340)

－

－

－

15

(15)

－

－

－

10

91

－

17

119

119

－

(8)

378

－

－

369

369

－

(3)

499

(11,324)(23) (10,851)(10,851)

38,716

51,825(6,338)813,741

6,011

903,957

SharecapitalBalance as of April 1, 2022
Profit for the period
Other comprehensive income
Total comprehensive income
Acquisition of treasury shares
Disposal of treasury shares
Dividends
Transfer from othercomponents of equity toretained earnings
Share-based payments
Total transactions with owners of
the parent
Balance as of September 30,
2022

Equity attributable to owners of the parent
Other
Capital Treasury Retained
components
surplussharesearnings
of equity

Equity attributable to owners of the parent
Other
Capital Treasury Retained
components
surplussharesearnings
of equity903,957

856,662
49,988
8,158
58,146(1)
0(11,340)（Unit: Millions of yen）
Total

Total equity

38,716－－－－－－51,921
－
－
－
(9)
20
－

(6,229)－－－(14,405)
83－

846,978
40,321－40,321－－(13,613)

－

－

－

2,812

(2,812)

－

－

－

(8)

123

－

38

153

153

－

2

(14,199)(10,801)(2,877) (27,876)(27,876)

38,71651,923(20,428)

876,498

224,395 1,171,105

1,171,105－ 10 －

80,926 1,012,313－
40,321
146,346 146,346
146,346 186,667－ (14,415)(103)
0－ (13,613)

1,012,313
40,321
146,346
186,667(14,415)
0(13,613)

[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

(4) Notes Pertaining to Condensed Consolidated Financial Statements(i) Going concern assumption
Not applicable(ii) Segment information(1) General information on reportable segments
The reportable segments of the Group represent business units for which separate financial information isavailable, and are reviewed regularly at the Board of Directors meeting to make decisions about allocation ofmanagement resources and assess the performance of the business.
The Group applies an in-house company system classified by product groups. The headquarter of each in-housecompany plans their own comprehensive domestic and international strategies and conducts their own businessactivities.
The three segments are Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell
Technologies Company.
The segment which was previously stated as “General Hospital Company” has been changed to “Medical Care
Solutions Company” from the fiscal year ended March 31, 2022. This change in name does not affect thesegment information. In accordance with this change, the name of the reportable segment for the six months
ended September 30,2021 was also changed to “Medical Care Solutions Company”.

－ 11 －

[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

(2) Reportable segment information
Revenue and operating results of the reporting segments of the Group are described below.
For the six months ended September 30, 2021

Reportable Segments

Revenue
Revenue from sales
to externalcustomers
Segment Profit(Adjusted
operatingprofit)(Adjustment item)
Amortization of
intangible assets
acquired throughbusiness
combinations
Non-recurring profit orloss(Unit: Millions of yen)Amountrecorded on
Adjustments
condensed(Note)
consolidated
financialstatements

Cardiac and
VascularCompany

MedicalCare
SolutionsCompany

Blood and
Cell
Technologies
Company

194,341

91,961

58,210344,513124

344,637

50,782

13,44011,75575,978(1,840)74,137(3,623)－(4,146)(7,769)(144)(7,913)

Total

(366)

Operating profit

65,857

Finance income

439

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
methodProfit before tax(1,342)326
65,282(Note) Amounts in “Adjustments” are as follows:(1) ¥124 million adjustment to Revenue from sales to external customers is mainly proceeds fromoutward temporary staffing that is not attributable to reportable segments.
(2) ¥(1,840) million adjustment to segment profit consists of ¥(535) million for inventories and¥(1,184) million for preparation expenses to comply with Medical Device Regulation in EU.

－ 12 －

[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

For the six months ended September 30, 2022

Reportable Segments

Revenue
Revenue from sales
to externalcustomers
Segment Profit(Adjusted
operatingprofit)(Adjustment item)
Amortization of
intangible assets
acquired throughbusiness
combinations
Non-recurring profit orloss(Note 2)(Unit: Millions of yen)Amountrecorded on
Adjustments
condensed(Note 1)
consolidated
financialstatements

Cardiac and
VascularCompany

MedicalCare
SolutionsCompany

Blood and
Cell
Technologies
Company

235,405

93,80573,980403,191124

403,316

52,905

8,147

9,102

70,154275

70,429(4,446)－(5,060)(9,506)(11)(9,518)

Total(4,934)

Operating profit

55,977

Finance income

929

Finance costs
Share of profit/(loss) ofinvestment accounted
for using the equity
methodProfit before tax(1,978)(303)
54,624(Note 1) Amounts in “Adjustments” are as follows:(1) ¥124 million adjustment to Revenue from sales to external customers is mainly proceeds fromoutward temporary staffing that is not attributable to reportable segments.
(2) ¥275 million adjustment to segment profit consists of ¥(1,524) million for preparation expenses
to comply with Medical Device Regulation in EU and ¥(248) million for inventories.
(Note 2) ¥(4,934) million Non-recurring profit or loss mainly includes ¥(1,756) million for impairment lossof technologies, ¥(3,524) million for impairment loss of goodwill, ¥(985) million for businessreorganization expenses and ¥1,333 million for the change in fair value of contingent
consideration.

－ 13 －

[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023(iii) Assets held for sale
The breakdown of assets held for sale and liabilities directly associated with assets held for sale is as follows.
(Unit: Millions of yen)
As of
As of
March 31, 2022
September 30, 2022
Assets held for sale
Inventories

－

1,127

Property, plant and equipment－

262

Goodwill and intangible assets

－

3,940

－

5,331

Other current liabilities－

23

Deferred tax liabilities

－

753

－

776

Total
Liabilities directly associated with assets held
for sale

Total

Assets held for sale and directly associated liabilities in the second quarter of the current fiscal year comprise
Autologous Biologics business unit in Blood and Cell Technologies Company and Nutritious food and assets
related to related products in Medical Care Solutions Company.
They have been classified as the held-for-sale category as the Group decided to sell them.
Regarding Autologous Biologics business unit, the Group entered into a transfer agreement with Globus Medical,
Inc.
The disposal group classified as assets held for sale is measured at fair value less cost to sell as the fair valueless cost to sell is less than the carrying amount.
The fair value has determined based on the expected selling price in the transfer agreement with Globus Medical,
Inc. and this fair value has been classified as Level 3 in the hierarchy.
As a result, the impairment loss of ¥3,524 million recognized for goodwill and intangible assets was included
in “Other expenses” in the Condensed Consolidated Statement of Profit or Loss.
The transfer of the business was completed on October 11, 2022.
Regarding Nutritious food, the Group entered into an asset transfer agreement with Mitsui Sugar Co., Ltd. (nowknown as Mitsui DM Sugar Co., Ltd.) and NUTRI Co., Ltd. As the fair value less cost to sell is greater than the
carrying amount, the Group recognized no gain or loss arising from classification as asset held for sale in thesecond quarter of the current fiscal year.
The transfer of the assets is scheduled for early December 2022.
(ⅳ) Impairment of non-financial assets
In the second quarter of the current fiscal year, an impairment loss of ¥1,756 million was recorded by reducing
the carrying amounts of certain technologies in intangible assets to the recoverable amount because they were
not expected to be used in the future.
The recoverable amount was measured based on the value in use, and the value was determined to be zero. The
impairment loss is included in “Other expenses” in the Condensed Consolidated Statement of Profit or Loss.
Impairment loss arising from the Autologous Biologics business unit due to the classification into assets held
for sale and directly associated liabilities are described in above (iii) “Assets held for sale”.

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[Terumo Corporation] Financial Results for the First Half of the Fiscal Year Ending March 31, 2023(v) Subsequent events
Significant capital investment
The Company resolved at the board of directors meeting held on November 10, 2022, to establish a new plantin Kofu Factory (Showa-cho, Nakakoma-gun, Yamanashi Prefecture) to prepare for the expansion of productionin the future.
Total amount of capital investment based on this resolution is expected as ¥30.7 billion.
The impact of this capital investment on the consolidated financial results for the fiscal year ending March 31,
2023 is immaterial.

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