Alliance Business
Develop a Growth Driver by Infusing
Core Technologies with a New Business ModelNovember 5, 2020

Shinjiro Sato
President and CEOTerumo Corporation

Safe Harbor for Forward-Looking Statements and Use of Document
Among the information that Terumo discloses, the forward-looking statements including financial projections
are based upon our assumptions using information available to us at the time and are not intended to beguarantees of future events or performance. Accordingly, it should be noted that actual results may differ fromthose forecasts or projections due to various factors. Factors affecting to actual results include, but are notlimited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, andstate of competition.
The market share information in this presentation is partly derived from our own independent research.
Information about products (including products currently in development) which is included in this material is
not intended to constitute an advertisement or medical advice.

Terumo Corporation
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp©TERUMO CORPORATION

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“Alliance” Business within Terumo
B2B: Provides pharma w/ devices to add additional
value to drug and contract manufacturing

Contractmanufacturing

Providedevice

A division of General Hospital company
with annual sales of 20 BJPY

Cardiac &Vascular
53%

Pharmaceuticalcompanies
GeneralHospital
29%

Sales

Bloodand Cell
Technologies
18%

Hospital &clinics©TERUMO CORPORATION

3 /12

Alliance
14%

Alliance Business Trajectory
Next Mid- to Long-term
Growth Strategy
High-calorie nutrient solutions
containing multivitamins

FY16～

Erythropoiesisstimulating protein

Growth stage
Deploy product pipeline,
prepare for next stage

Heparin in saline

FY99～

FY09～Biologics, Drug Kit
Administration Device
Develop track recordand pipeline

Drug & Device
Entry into combination
products

For Safety©TERUMO CORPORATION

Devices to be kitted
w/ drug ample/vial

Plus efficiency

Biosimilar using PLAJEX
has launched in EU

Plus Efficacy & Diversity
4 /12

Entering Growth Phase(100 million yen)
250

Drug Kit Administration Device(primarily outside Japan)

200

150

Prefilled syringes (primarily Japan)
100Provide prefillable
container(PLAJEX)500

FY16©TERUMO CORPORATION

FY17FY18FY195 /12CDMO
Fully-integrated manufacturingfrom molding thru packing

Unique Business Model
Traditional Model

Terumo’s Model: CDMO + α

Three-way collaboration is required

Terumo plays a double roles, devicecompany and contract manufacturer

Pharmaceuticalcompany

Contractmanufacturer(filler)

Pharmaceuticalcompany

 Provide devices to addDevicecompany

additional value to drug Contract manufacturing
 Regulatory affairs support

Make partnership from development phaseand collaborate all the way to manufacturing

CMO/CDMO
Drug
Prediscovery clinicalDrugdeveloppment

Clinical Approval

Manufacturing

Sales

Postmarketing
study

Drug
Prediscovery clinicalContract manufacturer©TERUMO CORPORATION

6 /12Drugdevelop- ClinicalmentApproval

Manufacturing

Sales

PostmarketingstudyCaptured Emerging Needs for Change in Drug Trend
Change in Drug Trend

Small-molecule:
Orally administered drugs

Large-molecule and biopharmaceutical:
Injected drugs

Terumo’s solutions

Emerging challenges
 Delicateness of biologics

 Silicone oil-free, aseptic filling Technologies to handle small volume, Filling technology for small volume, high-high viscosity drugs
 Difficulty of regulatory affairs forcombination products Diversified drug delivery©TERUMO CORPORATION

viscosity drugs
 Regulatory affairs support for the big threemarkets of US, EU, and Japan Diverse drug delivery options and customizability
7 /12

Next Moves for Sustainable Growth
Use core technologies to further strengthen customization
capability for increasingly diverse drugs
New needsCore technologies

 High viscosity
 High volume
 Patch self-injection
 Intradermal administration, etc

Tapered needles Patch pump

Intradermal
administration device

New DrugDelivery

Steady preparation for growth outside Japan
Jul 2018

Prefilled syringe manufacturing line of biologics certified for EU GMP

Nov 2018

Premix IV solutions manufacturing certified GMP compliant by US FDA

Jul 2020

Contract manufacturing of biosimilar Hulio certified GMP compliant by US FDA©TERUMO CORPORATION

8 /12

Seamlessly Expanding Development Pipeline
Deals projected from ongoing co-developments

Erythropoiesis-stimulating proteinAdalimumab biosimilar+10 deals

Teriparatide acetate
9 more drugs

12 deals～FY19©TERUMO CORPORATION

FY20～FY26
9 /12

Expand Production Capability thru Constant Investments(100 million JPY)250

CAPEX investment for production

200150100500FY01～FY05©TERUMO CORPORATION

FY06～FY1010 /12

FY11～FY15FY16～FY20

KSF to Secure Sustainable Growth Trajectory
Ample drug delivery technologies to meet a wide variety of drugs
Filling and sterilization technologies to manage sensitive drugs
Knowledge and experience of development, evaluation, regulatory
affairs, and clinical development for combination products
Track record and long-term commitment to earn the trust ofpharmaceutical companies©TERUMO CORPORATION

11 /12Extend Our Market Reach with “Alliance” Model
Capture the expansion of healthcare scene by innovation of combined technologies
Traditionalmodel ofmedtechcompany

A diversity ofcore technologies
ACommercialization
BC
D・・

Pharmaceuticalcompany“Alliance”
modelABC
D・・IT
company

Cell therapy-, regenerative
med-, or testing- relatedcompany
Other partners©TERUMO CORPORATION

12 /12

Hospitals,
Clinics＋Home andcommunity
care facilities

Individual
patients

Healthy
individuals