Terumo Corporation
November 8, 2018

Q&A Session at the Financial Results Briefingfor the First Half of the Fiscal Year Ending March 31, 2019
Outlined below are the principal Q&As from the financial results briefing of November 8, 2018.
Certain details have been expanded or modified to provide readers with a deeper understanding ofTerumo Corporation’s performance and activities.

Q1: How do you anticipate impact from share loss due to shipping delays at the Ashitaka factory?
In the US market, it appears there are some hospitals that started dual sourcing. Has there
been an instance where you were unable to participate in bidding?
A1: At this stage, it is difficult to estimate what degree of share we lost since we are still in themiddle of filling backorders. In the United States, there are some customer accounts that started
dual sourcing but at present there has not been a case where we missed out on bidding. We
expect this situation to settle down by the time we announce our financial results of the third
quarter of FY2018, and I think we will be able to give you a better feel of our situation then.
We are currently moving to a phase where we are winning back trust from the market. In order
to complete the aforementioned phase, we first need to shore up our track record for stablesupply and need to make assurances to our customers so they have a sense of security. Inaddition, we communicate with our customers by declaring that the situation has been resolved,
and showing our plans for supply conditions going forward and measures to prevent
reoccurrence of this issue. We aim to minimize the impact from share loss.

Q2: Previously I estimated a decline in revenue in the access device business in the Cardiac andVascular Company due to shipping delays at the Ashitaka factory but the revenue of thebusiness made a positive growth in 1H. What factors contributed to this growth?
A2: This growth reflects the use of the sterilization function at the Fujinomiya and Hanoi (Vietnam)
factories to clear the backorders. Also, we were able to curb the decline in supply capacity insome regions since we manufacture a portion of our access devices in the United States.

1The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.

Terumo Corporation
November 8, 2018
Q3: In Q2, the gross margin was low. How do you estimate it in the full fiscal year guidance?

A3: In Q2, we did indeed see a decline in gross margin. Nevertheless, in 2H we are forecasting arebound in our gross margin to previous levels. We estimate TIS products’ sales will be in linewith the guidance since, in a course of a recovery in the level of shipments at the Ashitaka
factory, we believe positive factors—pent-up demand from customers—will offset negativefactors—loss of customers. The TIS business boasts the highest gross margin of our businesses.
We therefore anticipate to improve our product mix only to trigger a recovery in our grossmargin in 2H.

Q4: You received a positive outcome at the US Food and Drug Administration panel meeting at
the end of September for the WEB Aneurysm Embolization System. Within Terumo, has there
been a change in the level of expectation for the potential of this product?
A4: The outcome was in line with our initial expectations, and expectations are rising.
Our expectations to this device remains high since we will be able to sell it with no similar
products from competitors in the market for a while once we acquire approval in the UnitedStates. Meanwhile, at the medical front, given this product is the first of its kind, physicians
will require training. As such we do not anticipate a large growth in sales immediately after its
launch to market. We forecast its revenue are likely to growth gradually.

Q5:As Mr. Sato mentioned in his presentation, he discussed “providing solutions to new needs
at the medical front”. Does he imply the entrance into new product groups or new
businesses, including ones related to IT and services?

A5: We plan to enter new product groups, including continuous glucose monitoring andhematopoietic stem cell transplantation (HSCT). At the same time, we look to also commencedisease-oriented approaches including ones related to cancer and foot care.

Q6: In comparison with the Mid- to Long-term Growth Strategy you announced before, revenue
and adjusted operating profit in the General Hospital Company are brisk. Has your outlook
for the General Hospital Company changed over the past two years?
A6: In the Mid- to Long-term Growth Strategy, we estimated mid-single digit revenue growth and animprovement of 2-3 percentage points in adjusted operating profit margin in the company. Atpresent, both revenue and adjusted operating profit margin are at the levels we targeted. We do
not plan to review our target for adjusted operating profit for now but going forward we look to2The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.

Terumo Corporation
November 8, 2018
expand both revenue and adjusted operating profit.

Q7: What is the growth driver in the alliance business in the General Hospital Company? In theB2B for biopharmaceutical companies, you said a major key factor for Terumo going
forward is the enhancement of capability to expand overseas. What types of capabilities do
you currently think you need to expand overseas?
A7: In Japan, especially in the field of prefilled syringes, we’ve already been holding a leading sharesin the industry, and We will continue to fortify our ties with pharmaceutical companies goingforward. Outside Japan, the product groups that contribute to revenue the most at this point aredelivery devices (needles, etc.) used in drug products kits. Further out, we aim to further
increase the number of contracts with pharmaceutical companies for prefilled syringes andprefillable syringes.
As for the capacities to expand overseas, we are focusing on factory quality assurance. We findit crucial to have quality assurance, that is in line with regulations in a particular sales region,and operational capabilities. Therefore, we believe that an increase in the number of contracts
we have with pharmaceutical companies shows the evidence that Terumo possesses suchcapabilities, which makes us an attractive company for them.

3The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.