Management Priorities
Terumo Corporation
President & Representative Director
Yutaro Shintaku
May 10, 2012

Management Priorities
1. Solid Business Continuity Plan (BCP) andstability of product supply
2. Investment in production to enable sustainablebusiness growth and enhance cost competitiveness3. Strategic shift in business portofolio
4. Investment in quality management system of CV
business (US)
5. Investment in growth strategy & shareholders return
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1. BCP & Stability of Product Supply
Installed 5 in-house power generators

Data center integrity

Emergency power generators
used in previous year

(one in eastern JP, one in western JP)

Two customer service centers(one in eastern JP, one in western JP)New Yamaguchi factory

In-house power generators
are installed

Diversify domestic production between
eastern and western JPProduce the core components of value added
products to boost mass production outside JP

Diversification of raw materials procurement
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2. Investment in production

VietnamHanoi: a new building to expand production of interventional productsSouthern Vietnam: a new factory to produce blood management products

The PhilippinesA new production building to expand production of general hospital
products such as syringes and needles

China


Hangzhou: preparation for local production of interventional products tosupply local market

% of production outside Japan Reached 40.4% as of Mar. 20122012/5/10©Terumo Corporation

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3. Strategic Shift in Business Portfolio Over half of the total sales now comes from highly profitablebusinesses growing at double digit rate Cardiac & Vascular and Blood Management
 High expectation on new products of General Hospital business(billion of yen)

400

Sales

Composition
Blood Management

19%7%40%

Cardiac & Vascular

41%

51%

General Hospital

39%

300
200
1000
FYE Mar. 2007

FYE Mar. 20122012/5/10©Terumo Corporation

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4. Investment in Quality Management System(U.S.-TCVS)
Improvement works in good progress, in accordance withconsent decree agreed with U.S. FDA in Sep, 2011

The similar level of investment to one in FYE Mar. 2012
will be continuously made in FYE Mar. 2013

It will complete in Spring of 2013, as originally plannedConsidering this challenge as requirements not only for CV
business but also for all businesses in U.S., we will as theentire Terumo Group enhance its all quality management system
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5. Investment in Growth Strategy & Shareholders Return
Target for next 5 years
OperatingCash Flow

Investment & Financial
Cash Flow

Depreciation &Amortizationminus
Working Capitalincrease

Repaymentof debts

Net
IncomeInvestment insustainablegrowthDividends

Balancing between
investment in growth
and repayment of debts

Targeting
30% of net income

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Steadily Increasing Global Presence
Ranking of World Med-Tech Companies（Excl. diagnostic imaging companies）
st1
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th

J&J
Medtronic
BaxterFresenius
AbbottCovidien
BostonBD
Stryker
B.BraunSt. JudeFYE Mar.2012 12th Terumo

9.3
8.4
7.8
7.4
7.3
5.9
5.2
4.8

15.8
12.8
12.1

（US$B）

24.6

Organic growth + M&A + Yen appreciationFYE Mar. 2007 19th Terumo

2.2(Note) ･Diagnostic imaging companies are excluded
from MPO Magazine Ranking･Exchange rate for FYE Mar. 2012: USD1=JPY80

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IR ContactTerumo CorporationCorporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp

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 orperformance. Accordingly, it should be noted that actual results may differ from those
forecasts on 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 of competition.
The market share information in this presentation is partly derived from our own
independent research.

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