Financial Results for FYE 3/2007 (Consolidated)

April 26, 2007

Name of listed company: TERUMO CORPORATION
Exchange where listed: TSE( URL http://www.terumo.com/ )Location of headquarters (prefecture):Company code number: 4543
Tokyo
Representative:
Akira Takahashi, President
Please address all communications to:
Kunio Kimishima, General Manager, Corporate Communication Dept.
Phone: +81 / 3-3217 - 6550
Adoption of U.S. accounting standards [Yes/No]: No

1. Consolidated Financial Highlights for the year ended March 2007
(From April 1, 2006 to March 31, 2007)(1) Consolidated financial results(Note: The amounts shown below ignore values of less than a million yen)

Net sales

Operating income

Ordinary income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

276,439
247,048

11.9
7.4

58,45548,25121.1
2.4

58,02548,934

18.6
3.8

Year ended March, 2007
Year ended March, 2006

Net income(Millions of yen)%

37,23232,457

14.7
19.6

Year ended March, 2007
Year ended March, 2006

Net income per
Ordinarystockholders' income per
equitytotal assets

Net income per share,
fully diluted

Net income per share
(Yen)

(Yen)

185.00160.45

-

%

%

%

13.2
13.2

16.1
14.7

21.2
19.5

(Notes) 1. Investment income for equity method:
March 2007: 135 million yen March 2006: 177 million yen
2. Changes in accounting policies: Yes
3. The Percentages shown next to net sales, operating income, ordinary income and net income represent year-on-year changes.

(2) Consolidated financial position
Total assets
March 31, 2007
March 31, 2006

Net assets(Millions of yen)

(Millions of yen)

367,147354,648289,248
273,309

Equity ratio

Book value per share

%

(Yen)

78.8
77.1

1,454.71
1,345.52(Notes) 1.Number of shares outstanding at end of period (consolidated):
March 2007: 198,788,606 shares March 2006: 203,027,519 shares(3) Consolidated statements of cash flows
Cash flows fromoperating activities
Year ended March, 2007
Year ended March, 2006

Cash flows fromfinancing activities

Cash flows frominvesting activities

Cash and cash equivalents,
end of period(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

43,12343,380(19,917)(54,391)(28,637)370

43,04947,963(4) Scope of consolidation and in application of the equity method
Nonconsolidated subsidiaries accounted for under equity method: 2
Consolidated subsidiaries: 41
Affiliated companies accounted for under equity method: 1(5) Changes in scope of consolidation and in application of the equity method
Consolidation (new):3(elimination):None(elimination):
None
Equity method (new):None

2. Consolidated forecasts for the year ending March 2008 (From April 1, 2007 to March 31, 2008)
Net sales

Half year ended September, 2007

Year ended March, 2008

Operating income

Ordinary income

Operatingincome per
Net sales

Net income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

145,000
300,000

9.3
8.5

31,40064,0009.6
9.5

31,40064,0008.0
10.3

20,20041,2009.7
10.7(N.B.) Estimated earnings per share (full year): 207.26 yen

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results,
performance or achievements to differ materially from that anticipated in these statements.

3. Financial Statements(1) Consolidated Balance Sheet(Millions of yen)March 31, 2006

March 31, 2007

AmountAmount(Assets)
I Current assets

Changes%
165,48646.7%%
171,576

46.7%

%
6,089

Cash and cash equivalents

47,96344,536(3,426)

Trade receivable notes/accounts

63,94070,0496,109

Inventories

40,941

45,631

4,689

Deferred taxes assets - short

8,604

7,519

(1,085)

Other current assets

4,952

4,733

(218)

Allowance for doubtful debts

(915)

(894)

3.7%

21

II Fixed assets

189,16153.3%

195,570

53.3%

6,409

3.4%

1.Tangible assets

109,837

31.0%

115,643

31.5%

5,806

5.3%

Buildings and structures

42,59145,092

2,501

Machinery and transportation equipment

28,401

32,004

3,602

Land

20,384

20,296(88)

Construction in progress

10,697

11,493795

Other tangible assets

7,762

6,756

(1,005)

2.Intangible assets

41,972

11.8%

40,52411.1%(1,448)Goodwill

23,770-(23,770)

Consolidation goodwill

12,411-(12,411)35,04635,046

Goodwill
Other intangible assets
3.Investments and other assets

5,790
37,351

5,477
10.5%

39,402

(312)
10.7%

2,051

Investment in securities

32,16234,802

2,640

Deferred tax assets - long

2,830

1,920

(909)

Other investments and other assets

2,358

2,679

320

Total assets

354,648100.0%

367,147(3.5%)

100.0%

12,4985.5%

3.5%

(Millions of yen)March 31, 2006

March 31, 2007

Amount(Liabilities)
I Current Liabilities
Trade notes/accounts payable

ChangesAmount
%66,87618.9%

23,858%65,891

17.9%

%
(985)

25,725

1,867

Short-term bank loans

3,975

236

(3,738)

Accrued Income taxes

11,398

8,694(2,704)

Reserve for employees bonuses

4,324

4,433

109

Reserve for directors bonuses

169

169

Notes and accounts payable on equipment

4,819

5,906

1,087

Other current liabilities

18,50020,7262,225

II Long-term Liabilities-

14,412Long-term bank loans
Deferred tax liabilities-longReserve for retirement allowance

Other long-term liabilities

12,0073.3%(2,404)

90

1,651

1,561

6,506

(5,665)

728

728

2,150

2,683

81,288

22.9%

49

0.0%

38,716

10.9%(16.7%)

436

436

12,171

Reserve for retirement benefits for directors and corporate auditors

Total Liabilities

4.0%-(1.5%)

533

77,89921.2%(3,389)(4.2%)

-

-

-

-

-

-

-

-

(Minority interests)
Minority interests(Stockholders' equity)
I Capital stock
II Capital surplus

59,030

16.6%

-

-

-

-

III Retained earnings

183,391

51.7%

-

-

-

-

7,367

2.1%

-

-

-

-

V Foreign currency translation adjustments(1,747)(0.4%)----

VI Treasury stock(13,449)(3.8%)----

Total Stockholders' Equity

273,309

77.1%

-

-

-

-

Total Liabilities, minority interests and stockholders' equity

354,648100.0%

-

-

-

-

76.1%

IV Evaluation difference of investment securities(Net assets)
I Shareholders' equity--

Capital stock-

38,716--

Capital surplus-

59,030--Retained earnings-

215,213--

Treasury stock-(33,453)

-

-

-

-

II Evaluation difference and foreign currency exchange adjustments

-

-

-

-

279,507

9,672

2.7%

Evaluation difference of investment securities

-

8,947

-

-

Foreign currency translation adjustments

-

725

-

-

III Minority interests

-

-

68

0.0%

-

-

Total net assets--

289,248

78.8%

-

-

Total liabilities, net assets--

367,147

100.0%--

(2) Consolidated Statement of Income(Millions of yen)
Year ended

Year ended

March 31, 2006

March 31, 2007

AmountChangesAmount%%%I Net sales

247,048100.0%

276,439100.0%

29,390

11.9%

II Cost of sales

111,37745.1%

123,11244.5%

11,734

10.5%

135,67054.9%

153,32655.5%

17,65613.0%

87,41935.4%

94,871

34.3%

7,452

8.5%

48,251

19.5%

58,45521.2%

10,203

21.1%

141

6.0%

1,254

74.6%

9,090

18.6%

(5,176)(99.2)

Gross Profit on Sales
III Selling, General and Administrative Expenses
Operating Profit
IV Non-operating Income
Interest income

368

719

350

Dividend income

170

261

90

Royalties

79

53

(26)

Foreign exchange profit

836

628

(208)

Equity in earnings of unconsolidated companies

177

135

(42)

Other non-operating income

731

2,365

1.0%

708

2,506

0.9%

(23)

V Non-operating Expenses
Interest expenses

286

165

Sales discount

393

451

Loss on retirement benefit in the overseas subsidiary

163

Loss on disposal of inventories

198

Other non-operating expenses

640

Ordinary Profit

(121)
58
-

(163)

1,241
1,682

0.7%

48,934

19.8%

1043

1,077

2,936

1.1%

58,025

21.0%

437

VI Extraordinary Profit
Gain on sales of fixed assets
Gain on contribution of securities to retirement benefit trust

71

43

(27)

4,966

-

Reversal of allowance for doubtful accounts

25-

Gain on sales of receivables written off

156

5,219

2.1%

-

(4966)
(25)
43

0.0%

(156)

Ⅶ Extraordinary Losses
Loss on disposal of fixed assets
Loss on sales of golf membership deposits

661

195

6

(466)
-

(6)

-

(196)

Loss on liquidation of the subsidiary

196

Loss on restructuring in the subsidiary

575

60

(514)

Directors' retirement fee

59

12

(47)

-

728

728

Provision of allowance for retirement benefits for directors andcorporate auditors
Expense relating to acquisition of newly consolidated subsidiary

473

Impairment loss

592

Income Before Taxes
Corporate, Inhabitant and Enterprise Taxes

20,197

Deferred Taxes (reduction)-1,079Minority Interest Income (loss) of consolidated companies
Net Income for the Period

2,566

1.0%

51,58820.9%

19,1177.8%

1332,457

-

(473)
996

0.4%

57,072

20.6%

19,824

7.1%

706

3.7%

0.0%

16

0.0%

2

18.3%

13.1%

37,232

13.5%

4,775

14.7%

17,002
2,821

(592)

(1,570)(61.2)

5,484

10.6%

(3,194)
3,901

(3) Consolidated Appropriation of Retained Earnings(Millions of yen)
Year ended
March 31, 2006

(Capital Surplus)
I Consolidated capital surplus, beginning of period

52,103

II Increases in Capital surplus

6,926

Gain on sales of treasury stocks
III Capital surplus, end of period

6,926
59,030(Retained Earnings)
I Consolidated retained earnings, beginning of period

155,501

II Increases in consolidated retained earnings

32,457

Net income for the period
III Deductions from retained earnings

32,457
4,567

Dividends - total

4,410

Directors' bonuses

140

Statutory auditors' bonuses
IV Retained earnings, end of period

17
183,391(4) Statement of changes in net assets

Beginning of period
Changes during this fiscal accounting period
New issue of stock
Delivery of dividends
Directors' bonuses
Interim net income
Acquisition of treasury stock
Changes of items other than capital stock (net)Total changes during this fiscal accounting periodEnding of period

Beginning of period
Changes during this fiscal accounting period
New issue of stock
Delivery of dividends
Directors' bonuses
Interim net income
Acquisition of treasury stock
Changes of items other than capital stock (net)Total changes during this fiscal accounting periodEnding of period

Capital stock
38,716

Capital surplus
59,030(Millions of yen)
Shareholders' equity
Retained earnings
Treasury stock
Shareholders' equity total
183,391(13,449)
267,689(5,278)(132)
37,232

38,71659,03031,821
215,213(20,004)(5,278)(132)
37,232(20,004)(20,004)(33,453)

11,817
279,507

Evaluation difference and foreign currency exchange adjustments
Evaluation difference ofForeign currency
Evaluation difference andinvestment securities
translation adjustments
foreign currency exchange
adjustments total
5,619
7,367
(1,747)

1,580
1,580
8,947

2,472
2,472
725

4,052
4,052
9,672

Minority
interests
49

Net assets
total
273,359

18
18
68(5,278)(132)
37,232(20,004)
4,071
15,888289,248

(5) Consolidated Statements of Cash Flows(Millions of yen)I

Year ended

Year ended

March 31, 2006

March 31, 2007

Net income

51,58857,072

Depreciation and amortization

Cash flows from operating activities
14,381

14,340

Impairment loss

592-

Amortization of consolidated adjustments

799

-

-

1,173

Amortization of goodwill
Investment income for equity method
Increase(decrease) in reserve for retirement allowance
Increase(decrease) in allowance for retirement benefits for directors
Increase(decrease) in allowance for bad debt

(177)

(135)

(7,214)

(669)

-

728

(90)

(53)

-

169

Interest income and dividend income

(539)

(980)

Interest expenses

286

165

Exchange profit

664

560

Loss on disposal of fixed assets

661

195

Gain on sales of fixed assets

(71)

(43)

6

-

Expense related to acquisition of new consolidated subsidiary

473-

Gain on contribution of securities to retirement benefit trust(4,966)-

Transfer of securities to retirement benefit trust

7,110

Increase(decrease) in reserve for directors bonuses

Loss on sales and impairment of golf membership

Payment Cash contribution of securities to retirement benefits-(5,000)Decrease(increase) in trade receivable(1,752)(4,471)

Decrease(increase) in inventories(4,923)(3,080)

Increase(decrease) in trade payable

1,461

665

Bonus for the board members

(157)

(132)

Others

3,323

1,478

Subtotal

61,45561,982Gain of loss interests and dividends

787

1,116

Interest paid

(293)

(165)

Corporate tax paid

(18,569)(19,810)

Cash flow provided by operating activities

43,38043,123

II Cash flows from investing activities
Payment for making fixed-term deposits-(1,487)(14,248)(17,202)

987

191

Capital expenditure for intangible assets(1,278)(447)

Payments for purchase of marketable securities(15,000)(2)

Proceeds from sales of marketable investments

1-

Proceeds from Assignment of goodwill-

40

Capital expenditure
Proceeds from sales of tangible assets

Payments for Assignment of goodwill
Payment for acquisition newry consolidated company
Payments related to acquisition of newry consolidated subsidiary
Net cash used in investing activities

(918)

(799)

(23,460)

(209)

(473)

-

(54,391)(19,917)(4,848)(3,787)-432

III Cash flows from financing activities
Increase(decrease) in short-term debt
Increase due to long-term debt
Decrease due to repayment of long-term debt

(5,339)-

Increase due to sell treasury stock

14,998-(29)(20,004)

Buyback of treasury stock
Dividends paid
Net cash used in financing activities(4,410)(5,278)370(28,637)

IV Effect of exchange rate changes

1,046

516

V Net increase(decrease) in cash and cash equivalents(9,594)(4,914)

VI Cash and cash equivalents at beginning of period

57,55747,963

Ⅶ Cash and cash equivalents at end of period

47,96343,049

(6)Notes

Relating to balance sheet(Millions of yen)

Accumulated depreciation of tangible assets

March 31, 2006

March 31, 2007

186,091

196,452

Ending balance of investment in securities to nonconsolidated subsidiaries and related companies(Millions of yen)

Investment in securities

March 31,2006

March 31,2007

353

344

Matured bills as of March 31 2007
The last day of this accounting period was a holiday of banking institutions,and the bills reaching maturity
on Mar 31 2007,mentioned below, are included in the ending balance of this interim accounting period.
(Millions of yen)March 31,2006

March 31,2007-

415

Trade notes receivable

March 31,2006
number of common stock issued

common stock

210,876,260

number of treasury stock

common stock

7,848,741

Relating to statement of income
I Main items among selling, general and administrative expenses(Millions of yen)March 31,2006

March 31,2007

Promotion and Advertisement fee

9,077

Transportation and Packaging cost

7,431

7,997

Salaries

19,25422,074

Provision for bonuses

3,896

4,755

Pension

1,835

1,611

R&D expenditure

18,024

16,792

Depreciation

2,828

3,027

Provision of the reserve for directors' bonuses-

169

18,024

16,792

II R&D expenditure

10,236

III Itemized statement of Gain on sales and Loss on disposal of assets
Gains on sales of fixed assets
March 31,2006

Land
Machinery and transportation equipment
Other tangible fixed assets
Total Gains on sales of fixed assets

60
10
0
71

(Millions of yen)March 31,2007

33
9
0
43

Loss on disposal of fixed assets(Millions of yen)March 31,2006

Land
Buildings and structures
Machinery and transportation equipment
Other tangible fixed assets
Total Loss on disposal of fixed assets

323
114
170
53
661

March 31,2007

12
18
68
95
195

IV Impairment loss
(Millions of yen)
Location
Application
Assortment
AmountMarch 31,2006

March 31,2007

Ashigara kami county ,Unused immovable property
Land
592

-

Relating to statement of cash flows
Reconciliation of cash and cash equivalents on the annual consolidated balance sheet.
(Millions of yen)March 31,2006

Cash on hand and in banks
Time deposits, bonds and other with origina
maturity exceedinga three-month period
Cash and cash equivalents

March 31,2007

47,96344,53647,963(1,487)43,049Assets and liabilities of the newly consolidated company at the acquisition date,
the acquisition price and the net disbursement

Year ended
March 31, 2006

(Millions of yen)
Year ended
March 31, 2007

Microvention.INC

Salymed. LTDA

1,648
4,675
18,746(945)
24,125(664)
23,460

467
3
(58)
(93)
(18)
300
(90)
209

Year ended
March 31, 2006

(Millions of yen)
Year ended
March 31, 2007

221
19
240
240

286
100
411
799
799

Year ended
March 31, 2006

(Millions of yen)
Year ended
March 31, 2007

-

4
35
40
40

Current assets
Fixed assets
Goodwill
Current liabilities
Fixed liabilities
Acquision priceCasn and cash equivalent
Net disbursement

Increase of assets and liabilities from the acquisition of operation

Current assets
Fixed assets
Goodwill
Other intangible assets
Assets total
Acquision priceDecrease of assets and liabilities from the transfer of operation

Current assets
Fixed assets
Assets total
Income from the transfer of operation

Relating to Statement of changes in net assets
I Category and total number of issued stock and treasury stock(Thousand)

Beginning balance

Increase during
this fiscal period

Issued stock : Common stock
210,876
Treasury stock : Common stock
7,848
Note : The increase or treasury stock is from taking up odd stock.

Decrease during
this fiscal period

4,238

Ending balance-

210,876
12,087

II Items on dividend
Delivery of dividends(Resolution)
Annual meeting of stockholders held on June29, 2006
A board of directors held on October 30,2006

Category of stock

Dividend(millionsyen)

Dividend
per share(yen)

Dividend record date

Effective dateCommon stock
Common stock

2,842
2,436

14
12

March 31,2006
September 30,2006

June 29,2006
December 8,2006

Dividend(millionsyen)The
original
capital of
dividend

Dividend
per share(yen)

Earned3,180 surplus

16

Devidends recorded in this fiscal period but effective in the next period(Resolution)
Annual meeting of stockholders held on June
28, 2007

Category of stock

Common stock

Dividend record date

Effective date

March 31,2007

June 29,2007

4. Segment Information(1) Segment by business(Millions of yen)
Year ended
March 31, 2007

Year ended
March 31, 2006
General hospital products
Sales
Operating income
Operating income ratio
Catheter and Cardiovascular system
Sales
Operating income
Operating income ratio
Home health care products
Sales
Operating income
Operating income ratio

129,883
25,381
19.5%

138,232
26,49619.2%

88,93025,923
29.1%

109,434
34,42931.5%

28,234
7,574
26.8%

28,772
7,901
27.5%(2) Sales results by product segment(Millions of yen)
Year ended
March 31, 2006
AmountDisposable medical equipment
Pharmaceuticals
Blood transfusion system
General hospital products
Catheter system
Cardiovascular system
Vascular grafts
Catheter and Cardiovascular system
CAPD system
Diabetes care products
Other productsHome health care products
Total

%

Year ended
March 31, 2007
Amount%77,15531.2%

79,20728.6%

35,814

14.5%

38,93714.1%

16,913

6.9%

20,0877.3%

129,88352.6%

138,232

50.0%

49,226

19.9%

63,97023.1%

32,27913.1%

35,874

13.0%

7,424

3.0%

9,588

3.5%

88,93036.0%

109,434

39.6%

7,738

3.1%

7,216

2.6%

10,026

4.1%

12,182

4.4%

10,469

4.2%

9,374

3.4%

28,234
247,04811.4%
100.0%

28,772
276,43910.4%
100.0%

Note ) Main Products belonging to each product segment
Product segment

Main Products

Disposable medical equipment

Syringe, Needle, Solution Administration set, I.V.catheter,
Blood collection tube, Electronic medical devices, etc.
I.V.solutions, Prefilled syringe, Nutritional products, etc.

Pharmaceuticals
Blood transfusion system
Catheter system
Cardiovascular system
Artificial vascular grafts
CAPD system
Diabetes care products
Other products

Blood bags, medical electronic devices for blood collection,
etc.
PTCA dilation catheters, Coronary stent, Guide wires,
Angiographic catheters, Cerebral aneurysm coils,etc.
Roller pump, Hollow fiber oxygenators, Blood circuit, etc.
Artificial vascular grafts
Dialysis solution, etc.
Blood glucose monitor, etc.
Home oxygen system, Home nutritional products,Digital
Thermometers, Electronic sphygmomanometers, etc.

(3) Sales results by region(Millions of yen)
Year ended
March 31, 2006
AmountJapan
EuropeAmerica
Others
Total%

Year ended
March 31, 2007
Amount%149,386

60.5%

152,466

55.2%

39,58716.0%

48,371

17.5%

38,617

15.6%

52,741

19.1%

19,457
247,0487.9%
100.0%

22,859276,4398.2%
100.0%