I am the CAFO, Muto. I will now explain the first-quarter results forthe fiscal year ending March 2021.

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First, I will give an overview of the Terumo Group as a whole.
In sales revenue, Cardiac and Vascular was impacted by COVID-19,
but impact on the General Hospital and Blood and Cell Technologies
companies was very light, resulting in a 14% decrease in revenue
for the Terumo Group, and an 11% revenue decrease whenexcluding FX impact.
Group Adjusted Operating Profit was greatly affected by thedecrease in Cardiac and Vascular revenue, because that company
has high profitability. In expenses, control of R&D spending that is
important for mid- to long-term growth was only limited, and SG&A
was reduced year-on-year due to COVID-19 restrictions on
activities and our efforts to control non-urgent spending, leading to
a 30% decline in adjusted operating profit and 31% in operating
profit when excluding FX impact.
Profit for the year was 39% below the same quarter of the previous
fiscal year.

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As the title suggests, the Cardiac and Vascular Company wasaffected by COVID-19, but there was only light impact on GeneralHospital and Blood and Cell Technologies, resulting in a lessening of
the total COVID-19 impact on revenue and profit.
Next slide, please.

2This is the variance analysis of adjusted operating profit, comparedto the same quarter of the previous fiscal year.
“Gross profit decrement by sales decrease” had a negative impactof 9.1 billion yen, primarily due to the loss of sales in the Cardiac
and Vascular Company.
“Gross margin” decrease had a negative impact of 2.8 billion yen,
due to the adverse effect on product mix resulting from decreased
Cardiac and Vascular revenue. Amid reduced demand in the 1stQuarter, we took into consideration the unclear outlook and, rather
than reducing our production volume, built up inventory for BCP
purposes. As a result, our manufacturing cost slightly decreased,somewhat lessening the negative profitability impact.
“Price” erosion was lessened with the decrease in Cardiac and
Vascular sales to start the year with a modest 300 million yen
negative impact. The Japan reimbursement price revision impact
was 1.1 billion yen, which was heavy compared to the previous3

fiscal year. This is because there was no price revision in the firsthalf of the previous fiscal year due to the consumption tax increasethat took effect then.
European “MDR” had an impact of 400 million yen, while IT
investment amortization expenses were 300 million yen. These were
not significantly different from the previous fiscal year, and work inboth projects is proceeding as planned.
“SG&A decrease” had a positive year-on-year impact of 3.4 billion
yen, not only because of reduced travel and promotion expenses
due to limited access to hospitals, cancellation of conferences, andremote activities amid COVID-19; but also thanks to Terumo Groupwide efforts to thoroughly control non-urgent expenses.
On the other hand, “R&D decrease” had a positive year-on-year
impact of 400 million yen, because though we generally maintained
our R&D investment in projects for mid- to long-term growth, we
also controlled spending on some non-urgent projects.
“FX” negative impact was 2 billion yen year-on-year, due to yen
appreciation against the euro, Chinese yuan, and Latin American
currencies.
Next slide, please.

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Next is revenue by region.
In Japan, there was some COVID-19 impact on Cardiac andVascular sales, but in General Hospital, which accounts for thelargest proportion of Japan sales, there was also increased demand
for some products due to COVID-19, making General Hospital sales
stable, for a total Japan revenue decrease of 4% year-on-year.
Outside Japan, all regions saw double-digit negative revenue
growth due to the decrease in Cardiac and Vascular sales. In theUnited States in particular, there was a significant decline in thenumber of procedures performed in the 1st Quarter. In China, there
was some loss of revenue due to impact from the timing of orders
from distributors in the Neurovascular business, but when that isexcluded, China showed the best recovery of any region.
Next slide, please.

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Next is revenue by business segment.
Due to postponement of elective procedures both for interventional
procedures and outpatient procedures, Cardiac and VascularCompany had seen impact on its demand, but there began to be arecovery in revenue along with the recovery of procedure numbers
in June at the end of the 1st Quarter.
General Hospital saw decreased revenue for some products due to
COVID-19 impact, but other products including thermometers anddisinfectant saw increased demand, and the Alliance business
continued its double-digit growth, to stabilize the company as awhole.
Blood and Cell Technologies had postponement of apheresis
therapies, but blood component collection system was a driver inthe company as a whole seeing stable growth.
I will give more detail by company in the next slides.

5Here is Cardiac and Vascular Company.
Revenue was impacted by COVID-19 in all businesses, resulting in
21% negative sales growth when excluding FX.
TIS business was negatively impacted overall by decreased demand.
The Neurovascular business demand was greatly impacted,because most aneurysm cases are elective procedures.
CV was affected by some decreased demand, but ECMO and other
instrument sales increased in Japan, lessening the severity of thedecrease in sales.
The Vascular business experienced a decrease both in surgical graft
and stent grafts, leading to negative sales growth.
Profit also declined as a result of the decreased sales revenue.
While there were instances in which demand declined in the 1st6

Quarter, our efforts toward building inventory for BCP and stablesupply purposes led to improved production cost, and this lessenedsome of the decreased profit impact.
Next slide, please.

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Next, the General Hospital Company.
Sales revenue was affected by decreased demand and limitations
on care involving certain General Hospital Products andPharmaceuticals.
In DM Healthcare, demand expanded for thermometers and other
healthcare products used in COVID-19 measures.
In the Alliance business, regions outside of Japan were drivers inmaintaining double-digit growth as a whole.
In profit, there was slight impact from the lowered production level
due to the lockdown in the Philippines, but the company controlledexpenses to maintain the same profitability as the previous fiscalyear.
Next slide, please.

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Next is Blood and Cell Technologies.
In sales revenue, amid concerns about a lack of donors affecting
the blood center business, the highly efficient blood component
collection system drew attention, and further, blood centers moved
to build inventory from a BCP perspective, leading to increased
demand. In that situation, new software was introduced for blood
component collection system Trima, and sales grew with its
message of better efficiency. There was also a contribution fromincreased demand for convalescent plasma to be used in COVID-19
treatment; this too helped drive the blood center businessʼs overall
double-digit growth when excluding FX impact.
There was impact from the decrease in demand due topostponement of elective therapeutic apheresis, but as a whole, theBlood and Cell Technologies Company achieved sales revenue
growth of 2%, and 7% growth when excluding FX impact.
Product mix improved due to a higher proportion of high-8

profitability blood component collection system sales. In addition,strong cost control, especially in SG&A, led to a large increase inprofit.
Next slide, please.

8Here are the topics for the 1st Quarter.
One topic for the Terumo Group was that we made a 2.4-milliondollar donation to support the WHO and others in the fight against
COVID-19.
In company topics, there were new product approvals and launches,
showing that Terumo is making steady progress for sustainablegrowth even amid COVID-19.
Next slide, please.

9Here is the new product pipeline for this fiscal year. I wonʼt go into
the details, but product launches are currently on schedule.
However, we will carefully watch to see if COVID-19 impact willaffect any anticipated releases.
Next slide, please.

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Next is our FY20 guidance. First, I will explain our guidanceassumptions.
Regarding sales, we anticipate that the 1st Quarter was where sales
bottomed out, and that there will be a recovery thereafter. Many
aspects of the COVID-19 2nd Wave impact remain unclear, so wehave not assumed those impacts in our FY20 guidance.
We will continue to maintain certain controls on SG&A. However, as
demand returns in the 2nd Half, it is anticipated that companies will
become aggressive in competition to realize quicker recovery. We
will compete proactively as we watch performance for theappropriate timing and amount to increase spending.
As a principle, we will not lower R&D activities level and continue toinvest in its spending that contributes to mid- to long-term growth.
As I mentioned earlier, we built up our inventory for BCP purposes
during the 1st Quarter, when the outlook was uncertain. From the112nd Quarter onward, we will monitor the spread of COVID-19 andhow each country responds to it, and watch our own results,
adjusting our production activity volume to gradually decrease
inventory toward normal levels.
Next slide, please.

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Here is our FY20 Guidance.
In sales revenue, we expect to see a recovery pattern, back up to a
5%-level decrease from the 10% level of the 1st quarter, and thento a 2% decrease year-on-year when excluding FX impact.
In adjusted operating profit, we hope to restore the year-on-year
decrease from the 30% of the 1st Quarter back up to minus 18%
year-on-year by the end of this fiscal year.
Guidance FX rates are 105 yen to the US dollar, and a slight yen
appreciation against the euro from the current level, to 120 yen.
Our dividend guidance from the May earnings announcement isunchanged, with a 14-yen interim dividend and 14-yen year-enddividend.
Next slide, please.

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Next is our revenue guidance by company.
Cardiac and Vascular experienced decreased demand due topostponed elective procedures in the 1st Quarter, but we anticipate
that it will recover in the 2nd Half and end up around minus 8% for
the year, and minus 5% when excluding FX impact.
In General Hospital, COVID-19-related limitations on some medicalcare will continue at a certain level, having a negative impact onGeneral Medical Products and Pharmaceuticals. On the other hand,
we anticipate that the Alliance business will drive to cancel that out,
leading to 1% sales growth.
In Blood and Cell Technologies, we anticipate that there will be adecrease in blood bags sales, but that the strong momentum of
blood component collection system will cancel out the negative
impact for a 2% increase in sales when excluding FX impact.
Next slide, please.

13This is the last slide. I will explain how we envision the quarterly
sales trend, based on last fiscal yearʼs results.
The 1st Quarter saw a little over 10% decline in sales revenue.
However, looking at monthly sales of Cardiac and Vascular, which
was the most affected by the virus: While there was a mid- 30%
year-on-year decrease in April, sales recovered to a decline of only
a little below 10% by June.
We anticipate a recovery pattern to start in the 2nd Quarter, withapproximately normal levels in the 3rd Quarter, and then positive
growth in the 4th Quarter.
This fiscal year still poses uncertainty with the COVID-19 2nd Wave.
However, we will make proactive contributions toward its
prevention and treatment, as we seek to meet the needs of theNew Normal, and steadily return to a growth pattern.
Thank you.

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