Terumo Corporation · TSE:4543

Terumo — FY2010 Earnings Presentation

29 slides from Terumo's earnings presentation, May 11, 2011

1. Slide 1: Financial Results for the Fiscal Year Ended March 31, 2011

   Financial Results for the Fiscal Year Ended March 31, 2011 Forecast for the Fiscal Year Ending March 31, 2012 Terumo Corporation May 11, 2011

2. Slide 2: Financial Results

   Financial Results (Unit: billion yen) Excluding FYE Mar. 2010 FYE Mar. 2011* YoY% Foreign Exchange Net Sales 316.0 328.2 +4% +9% Gross Profit 166.4(52.6%) 170.8 (52.0%) +3% +9% SG&A 103.1(32.6%) 108.2 (32.9%) +5% +10% Expenses Operating 63.3(20.0%) 62.6 (19.1%) -1% +7% Income Ordinary 63.6(20.1%) 56

3. Slide 3: Accounting Period Adjustment of Overseas Subsidiaries

   Accounting Period Adjustment of Overseas Subsidiaries „Unified accounting period of 5 Asian subsidiaries ends in December into ends in March <Former> <FYE Mar. 2011> Jan. – Dec. Jan. – Dec. Jan. – Mar. Subsidiaries Subsidiaries Consolidate Consolidate Consolidate Results for Head Office Head Office

4. Slide 4: Net Sales (by Region)

   Net Sales (by Region) (Unit: billion yen) Consolidated:+3% (+8%) FYE FYE Mar. 2010 Mar. 2011 Japan Outside ( ): Constant currency basis +2% of Japan +5% +0% 56.6 (+16%) Europe (+15%) 56.6 +6% 53.8 Americas (+15%) 57.0 173.9 177.1 142.1 149.2 China +18% 7.6 (+28%) 8.9 Asia & +10% 24.1 Others (+14%) 2

5. Slide 5: Net Sales (by Business Segment)

   Net Sales (by Business Segment) +2% +6% (Unit: billion yen) (+4%) (+14%) FYE FYE Mar. 2010 Mar. 2011 ( ): Constant currency basis +3% (+8%) 149.5 152.9 136.1 144.4 23.9 24.6 -33% (-32%) 6.4 4.3 General Cardiac & Blood Consumer Hospital Vascular Transfusion Healthcare *Excluding impact of accounting

6. Slide 6: Gross Profit Variance Analysis

   Gross Profit Variance Analysis 54% +1.2% -1.8% 0.1 Drug & 0.3 Volume Reimbursement Cost Price 53% Reduction (0.9 ) 0.8 1.1 Shift to Highly Price 0.7 Profitable Products 52% 52.6% Foreign Exchange 52.0% 51% Mar. 2010 Average exchange rates Mar. 2010 Mar. 2011 Mar. 2011 US$: 93yen 86yen EUR : 131yen 1

7. Slide 7: SG&A Expenses

   SG&A Expenses (Unit: billion yen) FYE Mar. 2010 FYE Mar. 2011 YoY YoY% Salaries & Wages 38.2 38.9 +0.7 +2% Sales Promotion 11.0 10.5 -0.5 -5% Logistical Costs 9.0 9.6 +0.6 +7% Depreciation & Amortization 5.1 4.7 -0.4 -7% Others 22.3 24.1 +1.8 +9% General Administrative Total 85.6 (27.1%) 87.8 (26.7%

8. Slide 8: Variance with the Forecast (Operating Income)

   Variance with the Forecast (Operating Income) (Unit: billion yen) 2.3 0.3 1.9 SG&A Increase Drop and Others Forecast Recover Operation Operation Results 63.3 Forecast 62.6 61.0 Forecast Forecast FYE Mar. 2011 as of Oct. 28, 2010 as of Mar. 22, 2011 Results Before earthquake After earthquake 2011/5/1

9. Slide 9: Initiatives in FYE Mar. 2012: First Step to Trillion Yen Track

   Initiatives in FYE Mar. 2012 First Step to 1 Trillion Yen Track ¾Revitalization from earthquake ¾Integration of Blood Management Business ¾Acquisition of Harvest Technologies Corp. 2011/5/11 Terumo Corporation 9/29

10. Slide 10: Recovery from earthquake

    Recovery from earthquake Revitalization toward Pre-Earthquake State „Through this fiscal year, we are to regain average. 100% factory operating ratio. -Raw materials: Securing significant stock and alternative materials -Power: Securing by the introduction of flexible working hours and in-house powe

11. Slide 11: Integration of Blood Management Business

    Integration of Blood Management Business Integration between Terumo & CaridianBCT „Terumo Blood Transfusion Business + CaridianBCT = TERUMO BCT „Integration team formed with members from both companies by region and function „Creating new value for global customers through joining both companies str

12. Slide 12: Acquisition of Harvest Technologies Corp.

    Harvest Acquisition of Harvest Technologies Corp. ＜Acquisition Details＞ „ Target Company: Harvest Technologies Corporation (U.S.) „ Purchase Price:US$70 Million (approx. 5.7 billion yen, 1US$=82 yen conversion) Separate milestone payment of the total maximum amount of $35 M over the period from 2012

13. Slide 13: Background and Purpose of Acquisition

    Harvest Background and Purpose of Acquisition „Background •TCVS has been distributing Harvest’s products ⇒Exclusive distribution in US cardiac surgery field since 2006 •Practical application of Cellular Therapy in growing trend *) Penetration of the therapy (U.S.) ⇒15 to 20 % in Cardiac Surgery, 10%

14. Slide 14: Advanced Technologies to Derive Concentrated Cells from Blood and Bone Marrow

    Harvest Advanced Technologies to Derive Concentrated Cells from Blood and Bone Marrow „Current Fields: Cardiac surgery (Distributed by TCVS) / Orthopedics surgery Extracted from Separated and Applied to the the patient’s blood Centrifuged and bone marrow harvested wounds „New Fields: Vascular surger

15. Slide 15: Harvest: Growth and Payment Details

    Harvest Large Growth Gained only by Existing Business Even greater growth potentially through Cellular therapy expansion Unit: $mil Net Sales ＜Payment Details＞ 100 Milestone 80 New $35 million 60 G R １ ７％ 40 sin ess CA g Bu At Closing Existing Ex istin Existing Existing $70 million 20 0 FY05 06 07 0

16. Slide 16: Forecast for the Fiscal Year Ending March 31, 2012

    Forecast for the Fiscal Year Ending March 31, 2012 2011/5/11 Terumo Corporation 16/29

17. Slide 17: Forecast for the Fiscal Year Ending March 31, 2012

    Forecast for the Fiscal Year Ending March 31, 2012 (Unit: billion yen) Mar. 2011 Mar. 2012 Excluding YoY Foreign Results Forecast(*) Exchange Net Sales 328.2 332.0 +1% +3% Operating Income 62.6(19.1%) 65.0(19.6%) +4% +7% Ordinary Income 56.9(17.3%) 63.0(19.0%) +11% Net Income 32.3( 9.9%) 40.0(12.0%)

18. Slide 18: Unified Depreciation of Property, Plant, and Equipment into Straight-line Method

    Unified Depreciation of Property, Plant, and Equipment into Straight-line Method „Objective 9Speed up global business management 9Straight-line method as the standard in overseas subsidiaries 9Match the actual business condition 9Ready for IFRS „Impact on FYE Mar. 2012 9Approx. 4.6 billion yen decre

19. Slide 19: Operating Income Variance Analysis

    Operating Income Variance Analysis (Unit: billion yen) (+4%) Accounting period adjustment of overseas subsidiaries Impact of Foreign -1.0 Exchange +4.6 -1.7 (+1%) Unify depreciation ` method 65.0 62.6 59.9 60.4 Mar. 2011 Mar. 2011 Mar. 2012 Mar. 2012 Results Results Forecast Forecast (Adjusted) (Adj

20. Slide 20: Estimate of Amortization on Goodwill after CaridianBCT Acquisition

    Estimate of Amortization on Goodwill after CaridianBCT Acquisition Incremental Approx. 20 Bln yen Annual increase in amortization Approx. 10 billion yen Goodwill Approx. 160 Bln yen * The above figures are in-house estimates and maybe revised after asset valuation by third-party external specialists

21. Slide 21: Estimate of Acquired Companies' Impact on Financial Forecast

    Estimate of Acquired Companies’ Impact on Financial Forecast ¾High profit of core business from year one ¾Break-even after amortization of goodwill etc. (Unit: billion yen) CaridianBCT Harvest Total Net Sales 48.0 2.0 50.0 Operating income 10.0 0.4 10.4 Amortization of ▲10.0 ▲0.3 ▲10.3 goodwill etc.

22. Slide 22: Image of Net Sales and Income Including Acquired Companies

    Image of Net Sales and Income Including Acquired Companies Unit: billion yen, % YoY, ( )Excluding impact of Foreign Exchange +17% +16% (+21%) (+19%) 75.0 *Calculated based on the number Excluding 382.0 Amortization of share as of Mar. 2011 Goodwill Amortization 50.0 64.2 Goodwill Amortization 350 33

23. Slide 23: Reference

    Reference @TERUMO

24. Slide 24: Financial Results (Quarterly three months)

    Financial Results (Quarterly three months) (Unit: billion yen) Q4FYE Mar. 2010 FYE Mar. 2011 Q4(*) YoY% Net Sales 77.1 84.0 +9 % Gross Profit 40.3(52.2%) 43.6 (52.0%) +8 % SG&A Expenses 27.0(35.0%) 29.1 (34.7%) +8 % Operating Income 13.3(17.2%) 14.5 (17.3%) +9 % Ordinary Income 13.2(17.2%) 14.0 (16.

25. Slide 25: Financial Results of 2nd Half for FYE Mar. 2011

    Financial Results of 2nd Half for FYE Mar. 2011: To the Forecast for the 2nd Half (Unit: billion yen) Impact of Foreign 2H Forecast 2H Results Progress Rates Exchanges Net Sales +1.5 billion yen 162.1 164.3 101% (Upper progress rate by 0.9%) Operating Income 28.3 (17.5%) 29.9 (18.2%) 106% +0.4 billi

26. Slide 26: Gross Profit, SG&A, Operating Income Rates

    Gross Profit, SG&A, Operating Income Rates (%) Gross Profit 52.2 52.1 52.3 51.7 52.0 SG&A Expenses 35.0 32.5 32.0 32.5 34.7 Operating 19.6 20.3 19.2 Income 17.2 17.3 Q4 Q1 Q2 Q3 Q4 Mar. 2011 (Quarterly: 3 months) 2011/5/11 Terumo Corporation 26/29

27. Slide 27: Changes of Quarterly Average Exchange Rates

    Changes of Quarterly Average Exchange Rates yen 140 EUR (Mar. 2010) EUR (Mar. 2011) 120 117 113 US$ 111 112 (Mar. 2010) 100 US$ 92 ( Mar. 2011) 86 82 80 83 Q1 Q2 Q3 Q4 (Quarterly average exchange rates) 2011/5/11 Terumo Corporation 27/29

28. Slide 28: R&D Expenses

    R&D Expenses (Unit: billion yen) 25 +3% +16% 20 21.0 15 20.4 17.5 17.2 10 15.8 5 0 Mar. 2008 Mar. 2009 Mar. 2010 Mar. 2011 Mar. 2012 (Forecast) 2011/5/11 Terumo Corporation 28/29

29. Slide 29: IR Contact

    IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: kouhou_terumo01@terumo.co.jp Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo

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