Celebrating our 100th founding anniversary:
5-Year Growth Strategy with a 10-Year Vision
02 |Cardiac and Vascular Company
Toshihiko Osada, President©TERUMO CORPORATION

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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 be guarantees
of future events or performance. Accordingly, it should be noted that actual results may differ from thoseforecasts or projections due to various factors. Factors affecting to actual results include, but are not limited to,changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state ofcompetition.
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 notintended 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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Vision for our 5-Year Growth Strategy

Together with our customers,
we strive to create the next standard ofpatient care and drive the evolution of
medicine on the front lines©TERUMO CORPORATION

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Looking Back on Current Mid- to Long-term Growth Strategy
Achievements
Adjusted Operating Profit % Business Portfolio expansion through acquisitions•

Cerebral aneurysm:

Sequent Medical•

Aortic aneurysm:

Bolton Medical•

Access:AngioSeal asset

25.7%

 Accelerating stable supply to support rapid growth
Recovery from Ashitaka Shipping Delays•

Cardiovascular fully exits Consent Decree24.8%
24.6%

 Increase in penetration of radial procedures in coronary intervention
•

25.8%

22.6%

Revenue (B JPY)
324

329

2017

2018

351

329

262

Next step Strengthen operations to improve profitability and supply continuity•

TIS: Global optimization of manufacturing sites•

Cardiovascular, Vascular graft: Manufacturing cost reduction•

Neurovascular: Expansion of Costa Rica plant Prepare for growth in new businesses and new technologies©TERUMO CORPORATION

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2016

2019

2020

2021

Key Shifts in Market
Market Dynamics

Strategic Implications

Tailwind for radial procedures amid
increased economic pressure on
healthcare providers

Contributing to shorter hospital
stay and reduced complications

Large and growing therapeutic
device market

Expanding therapeutic productpipeline

Increase in market expectation fordigital utilization

Providing comprehensive carealong patient journey beyond
OR・CathLab©TERUMO CORPORATION

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5-Year Growth Strategy: Cardiac and Vascular Company
Therapeuticbusiness

Access businessOperations©TERUMO CORPORATIONi

Expand therapeutic business with new product launches
Ischemic stroke, Cerebral aneurysm, aortic aneurysm,
interventional oncology, peripheral interventionPersonalized medicine with digital solutions

ii

Drive radial access adoption across disease areas
Coronary to neuro, Interventional oncology and Peripheral
Total solution including clinical decision support with big dataiii

Evolution of operational capabilities
Optimize global manufacturing sites to increase production
capacity and reduce costs. Enhance efficiency with DX
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Revenue and Profit Overview
Revenue

Growth in the high single-digit

FY16iFY21

Expand therapeutic business with seriesof new product launches• Therapeutic devices for ischemic stroke andCerebral aneurysm• Full-scale launch of aortic aneurysm products• Expansion of peripheral intervention andinterventional oncology productsii

Adjusted Operating Profit+ 2% pts improvement(Adjusted operating profit %)FY16FY26iii Evolution of operational capabilities•Vascular graft:
Optimize global manufacturing sites to increase
production capacity• Cardiovascular:
Cost reduction of next-generation products+30 B JPY
+30 B JPY
+20 B JPY

Drive radial access adoption acrossdisease areas•

Expansion of access business focused on radialadoption- Vascular access- Therapeutic lesion access©TERUMO CORPORATION

FY21+40 B JPY+25 B JPY

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FY26Adj. operating
profit %Low single-digit
to double-digit
Low single-digit
to double-digiti Expand Therapeutic Business with New Product Launches
Neurovascular
Ischemic stroke

Aspiration
catheterStent retriever

Market size (2026)

Brain aneurysm

IntrasacculardeviceFlowdiverter

Aortic aneurysm

Abdominal
stent graftThoracicstent graft

Market size (2026)

Market size (2026)

Expansion of product pipeline
Full-scale expansion in major markets+30 B JPY

Launch full-line
portfolio+30 B JPY

300 B JPY©TERUMO CORPORATION

Aorta

280 B JPY

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400 B JPY

Source: Terumo research

ii Drive Radial Access Adoption Across Disease Areas
Expand radial target areas
NeurovascularCoronary
Approachfrom wrist

Oncology

Peripheral

Radial procedure penetration

Features of radial procedure Shorter hemostasis time Less complication risks
Value provided
 Improvement of medicaleconomics
 Patient QOL
Expanded target sites
 From coronary to peripheral,
Interventional oncology, andneurovascular©TERUMO CORPORATION

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2026 Estimate
68%

Coronary

More than77%
70%

PeripheralarteryInterventional
oncologyNeurovascular

Less than 10%
More than 20%25%

Less than 10%20%
More than 20%

Less than 5%~10%

Source: Terumo research

ii Drive Radial Access Adoption Across Disease Areas
Provide solutions
ProductsTraining• Providing “systems”• Procter training• Hydrophilic coating• Simulation• Sharpness of tip• Academic partnership• Thinner diameter• University accreditation
program

Expand experience of coronary radial approach
Coronary

TRI

Interventional
oncology

Peripheral

Neurovascular

Sales growth of access-related products - Vascular access+40 B JPY- Therapeutic lesion access +25 B JPY©TERUMO CORPORATION

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iii

Evolution of operational capabilities

Optimize global manufacturing sites to increase production capacity and reduce costs
Enhance productivity with DX
Ashitaka (Shizuoka)

Transition to “Smart factory” (DX)
Increase efficiency through DX
Automate manual processes

Beijing, Hangzhou

Expand prodiction of local TIS
products
Access and cardiology products

Yamaguchi

Semi-mother factory for TIS
Full-scale launch of new factorybuilding
Cover end-to-end processes tosterilization

VietnamLow cost production
Full-scale ramp-up of new building
Site for stent graft processCalifornia

Maryland

Local production for thelargest market in the US
Promote automation in broader
products (Access, Oxygenator)

Start manufacturing of newneurovascular products
End-to-end operations from new
product development throughmanufacturing

Puerto Rico

Expand AngioSeal production
Reinforce infrastructure
Increase production capacity

Costa Rica

Expand neurovascular production
capacity
Full-scale production in the new building
Increase production capacity

Improve profitability of C&V Company©TERUMO CORPORATION

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Key Pipelines to Support Growth (Excerpt)
Near- to mid-term
Neurovascular
VasculargraftTISCardiovascular©TERUMO CORPORATION

Balloon guidecatheter

Abdominal
stent graft

Drug-eluting
stent

Artificial lungMid- to long-term

Intrasacculardevice

X coatingstentOpen stentgraftThoracicstent graft

Vascular plug

Aspiration
catheter

Peripheral radialsystem

Stent
retrieverCustomized
stent grafts

AtherectomyConnected care

Drug-eluting
balloonBlood flow monitoring
Early recovery after
surgery program

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Venous device

Develop Medical Standard with Digital Technologies
Patient Journey
Pre-treatment

Treatment

Post-treatment

Early detection of criticalsymptom onset

Therapy leveraging patient’s clinical data and comorbidities,
decision on post-surgery management
Continuous post-treatment
Improvement in speed and accuracy of procedure
monitoring

Support for pretreatment planning

Decision-making
support for diagnosisand treatment

Support for earlyrecovery after surgery

Launched “C&V Digital” in North America and started building
foundation and capabilities to support digital efforts©TERUMO CORPORATION

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Next standard ofcare along thePatient JourneyToward the next decade
GS26

Beyond GS26

 Revenue: High single-digit topline growth withimproved profitability
 Adjusted Operating Profit: + 2% pts improvement
Expand therapeutic portfolio

Adjacent・new therapeutics portfolio• Ischemic stroke and cerebral hemorrhage treatment
devices• e.g., venous diseases• e.g., cancer therapy other than liver cancer• Thoracic and abdominal stent grafts, surgical・stentgraft hybrid• e.g., neurovascular area other than stroke• Peripheral artery and cancer treatment
Expansion of radial across in other disease

Digital health business along the patient journey• Expansion of vascular access and therapeutic lesionaccess based on radial approach• Monetize digital health business• Enter robotics-related business• From coronary to peripheral artery, interventional
oncology, and neurovascular

R&D global network enhancement

Operational enhancement• Optimize global manufacturing sites to increase production
capacity and reduce costs• Enhance productivity with DX and A's smart factory
concept©TERUMO CORPORATION

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