Financial Results for the Second Quarter of the Fiscal Year Ending March 31,
2011: Reference
Analysis of Business Performance<1> Overview of the First Half of the Fiscal Year Ending March 31, 2011[1] Overview of Business Results
The global economy in the consolidated period of the first half of this fiscal year
(from April 1, 2010 to September 30, 2010) showed a mild recovery driven by China
and other countries in Asia, but due to prolonged monetary relaxation in advanced
countries, experienced drastic fluctuations in foreign exchanges, with many
uncertainties down the road.
Under such economic conditions, healthcare in the world is now in the midst of
drastic changes. As exemplified by the fact that China targets having 90% of thepopulation covered by basic medical insurance by 2011, emerging countries areespecially improving medical infrastructures along with their economic development,
and an increase in demand in the healthcare service-related fields is expected. On theother hand, in advanced countries such as Europe and the U.S., increasing costs ofmedical care have become a major issue, and a wide range of healthcare system
reforms have been conducted to secure financial resources for healthcare and to reduce
medical costs.
Under this greatly changing environment, our group has promoted business withunique goods and services that can contribute to the healthcare economics to improve
the quality of healthcare and promote efficiency while paying close attention to market
changes.
As a result, our performance in the consolidated period of the first half of this fiscal
year is as follows:< Net Sales >Japan, affected by the revision of drug and device reimbursement prices, sales were
89.5 billion yen or a 1.9% increase when compared with the same period in theprevious year.
Outside of Japan, we saw the impact of foreign exchange due to the appreciation ofthe yen, business was good in general, and we enjoyed a 16.1% growth on a constantcurrency basis, and Europe, the U.S., Asia and other regions individually showeddouble-digit growth. Consequently, the total amount of sales in Japan and outside ofJapan resulted in a 3.7% increase or 163.9 billion yen.

-1-[Terumo Corporation] Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2011: ReferenceGeographic segments(Unit: millions of yen)Area

1H Mar. 2010

Changes %1H Mar. 2011
Changes%Results(Constant currency basis)

Results

Japan

87,774

89,4711.9%

1.9%

Europe27,88027,331(2.0%)

14.0%

Americas26,60828,706

7.9%

16.0%

Asia and others

15,80018,409

16.5%

19.9%

70,28974,447

5.9%

16.1%

158,063

163,918

3.7%

8.2%

Total of
Outside of Japan
Total<Gross Profit>
Negative factors such as revised drug and device reimbursement prices and theimpact of fluctuation with the appreciation of the yen exceeded such positive factors asa shift to highly profitable products, increase in the volume of sales, and cost reduction.
The gross profit rate consequently dropped by 0.5 point when compared with the same
period in the previous year, to 52.2%. The amount of gross profit on sales increased by
2.3 billion yen, and thanks to the increased sales, resulted in 85.6 billion yen.
<Operating Income>Though we generally controlled general administrative expenses efficiently, we
proactively made investments in growth such as development cost, and SG&A
expenses increased by 2.2 billion yen when compared with the same period of theprevious year. Thus operating income slightly increased to 32.7 billion yen.
<Ordinary Income>Substantially affected by foreign currency loss due to the appreciation of the yen,ordinary income decreased by 12.6% when compared with last year, resulting in 28.2
billion yen.
<Net Income>Net income decreased by 11.6% when compared with last year, to 18.4 billion yen.

-2-

[Terumo Corporation] Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2011: Reference

Next, net sales results by business segments are as follows:Business Segments(Unit: millions of yen)
1H Mar. 2010

1H Mar. 2011

Results

Results

Business Segments

Changes %Changes% (Constantcurrency basis)

Net Sales

75,062

77,423

3.1%

4.8%(Japan)60,15462,4593.8%

3.8%(Outside of Japan)

14,908

14,963

0.4%

8.7%

Net Sales

67,541

71,860

6.4%

14.2%

(Japan)19,657

19,9381.4%

1.4%(Outside of Japan)

47,88351,922

8.4%

19.4%

Net Sales

11,791

12,536

6.3%

11.7%

(Japan)

4,640

5,321

14.7%

14.7%

(Outside of Japan)

7,150

7,215

0.9%

9.8%

Net Sales

3,668

2,098

(42.8%)(42.6%)(Japan)

3,321

1,752

(47.2%)(47.2%)

347346(0.3%)

2.2%

General HospitalBusiness

Cardiac & VascularBusiness

Blood Transfusion
Business

Consumer Healthcare
Business(Outside of Japan)(Note): The amounts of the same period in the previous year in this table are
rearranged to compare with the results of this period.
<General Hospital Business>
In Japan, sales of infusion devices, infusion pumps and syringe pumps with higher
value added that lead to reduced risks of accidents or infection were good in Japan. We
also started to enter the chronic phase market, and efforts have started to yield results,
enjoying an increase in sales of semisolid nutritious food and other products.
Outside of Japan, we started to directly sell General Hospital products in someregions in Latin America, increasing sales.
Consequently, sales of General Hospital Business were 77.4 billion yen or a 3.1%
increase when compared with the same period in the previous year.
<Cardiac & Vascular Business>
In Japan, intravascular ultrasound imaging catheters used in the treatment of Angina
Pectoris, “ViewIT,” and PTCA balloon catheters, “Tazuna,” continued to enjoy
favorable sales, and a new product jointly developed with Olympus, “VisiGlide,”continuously increased sales ever since its launch in April 2010.
Outside of Japan, sales increased, especially interventional systems. Drug-eluting
coronary artery stent, “Nobori” enjoyed positive sales in Europe, Latin America andAsia, while cerebral aneurysm treatment coils and catheter products used for TRI(Trans-Radial coronary Intervention) sold well in the U.S., resulting in double-digit-3-[Terumo Corporation] Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2011: Reference

sales increase in all regions including Europe, Americas, Asia and others.
As a result, sales in Cardiac & Vascular Business increased by 6.4% when comparedwith the same period in the previous year and were 71.9 billion yen.
<Blood Transfusion Business>
Sales of blood bags increased both in and out of Japan, and our automated centrifuge& separator integration system that contributes to the improvement of operational
efficiency at blood centers, “TACSI,” steadily expanded its area of sales.
Sales of Blood Transfusion Business thus resulted in 12.5 billion yen or a 6.3%
increase when compared with the same period in the previous year.
<Consumer Healthcare Business>
Last year in Japan, there was an increase in demand for digital thermometers due tothe outbreak of the H1N1 influenza, but this year we were affected by its reaction, andsales in Consumer Healthcare Business decreased by 42.8% when compared with thesame period in the previous year to result in 2.1 billion yen.
<2> Forecast for the fiscal year ending March 31, 2011
As to the forecast for the full year, in view of the recent conditions in foreignexchange markets, we decided to revise the assumed exchange rates of 80 yen to theU.S. dollar and 113 yen to the euro for the second half, and the forecast of the results
for the this fiscal year are updated as follows. Due to this revision, foreign exchange
rates that serve as premises for the forecast of business results for the full year are now
85 yen to the U.S. dollar and 113 yen to the euro.
Forecast for the fiscal year ending March 31, 2011
(Full year)(Unit: millions of yen)
Net Sales

Operating
IncomeOrdinary
IncomeNet Income

Net Incomeper Share(yen)Forecast announced
last time
Forecast announced
this time

333,000

65,20065,00041,500218.54

326,000

63,30057,20036,300191.16

Changes(7,000)(1,900)(7,800)(5,200)(27.38)Changes (%)(2.1%)(2.9%)(12.0%)(12.5%)(12.5%)

Previous year results

316,009

63,282

63,611

40,721214.44-4-