Starting this quarter, I, Muto, will explain our results overview.

1First, the overall results. In addition to the Cardiac and Vascular Company startingout strong, spending progress was slightly delayed, resulting in a start to the fiscal
year in which profit grew in double digits to exceed guidance.
In revenue, even when excluding the recovery from last year's shipping delay,
Cardiac and Vascular company showed double‐digit growth before FX impact,driving overall group growth to 7%.
Due to slight delays in the progress of spending on SG&A, especially salaries &wages, adjusted operating profit grew 11%, despite some FX impact, for double‐
digit growth.
Profit before taxes grew 26% year‐on‐year, due to far less FX loss than the same
period of the previous fiscal year.

2This is the variance analysis of adjusted operating profit, compared to the previous fiscalyear. The gross profit increment by sales increase may appear small compared to guidanceof 33 billion yen for the entire year; however, that is the result of there being some impact
in the previous fiscal year from the Ashitaka Factory shipping delay. In the 2nd quarter ofthis fiscal year, we expect the gross profit increment to greatly increase and progress
according to plan.
The 100 million yen amount of Gross Margin might appear similarly low in light of the 4.8
billion annual guidance, but this too is on schedule. It reflects the production cost increasethat came with bringing new production online at the Yamaguchi Factory, which was offset
by improved business mix, resulting in a similarly high gross profitability to the samequarter of the previous fiscal year.
Progress on "Price erosion" impact is delayed due to new price negotiations with somecustomers not being complete yet. However, price corrections compensating for this past
portion will be reflected in the 2nd quarter and beyond, meaning the annual guidance
remains on schedule.
"SG&A increase" includes some planned promotional expenses that did not occur in thisfiscal year; from the 2nd quarter onward this will catch up to plan, getting closer to theannual guidance of 12.5 billion yen.
"R&D increase" appears small compared to the annual guidance of 5.7 billion yen; this isactually on schedule with our plan to gradually increase this throughout the year.
Regarding FX, the overall impact was more or less in line with the annual guidance.

3Next is revenue by region.
In Japan, the TIS business returned to double‐digit growth, and all companies
showed positive growth.
Outside Japan, all regions were driven by the Cardiac & Vascular company. In China
especially, the shipping delays had already begun to affect revenue during the 1stquarter last fiscal year; in addition to the recovery from that, the DES business ofEssen Technology was added this fiscal year, for total positive year‐on‐year growthof 25%.

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Next is revenue by company.
In Cardiac & Vascular, the primary drivers were recovery in the TIS business, andneurovascular growth that exceeded 30%.
In General Hospital, the Alliance Business continued to grow at over 30%, andoverall the company performed well.
Blood Management started out negatively year‐on‐year due to strong FX impacts
and some expected revenue happening at the end of the last fiscal year instead of
this 1st quarter, primarily in the US and Europe.
I will give more detail by company in the next slides.

5First, Cardiac & Vascular Company.
Revenue was affected negatively by FX, but still grew 11%.
TIS showed double‐digit growth both inside and outside Japan, driven by strong
growth of both access and therapeutic devices even without the recovery from last
fiscal year’s shipping delay.
Neurovascular, in addition to seeing a strong launch of the WEB product in theUnited States, grew its Sofia aspiration catheter well, leading to overall revenue
growth of 30%.
In profit, the increase in sales of high‐profitability TIS and neurovascular products
and improved product mix both contributed to a strong result. With delays in theprogress of spending promotion and salaries & wages also having an impact, profit
grew 23% year‐on‐year. In the 2nd quarter and beyond, this spending will catch up.
Also, an October reimbursement price revision will have impact, so we expect ourannual results to trend back toward guidance.

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The General Hospital Company began this year approximately according to plan.
In revenue, there was a decrease in General Hospital products demand outside
Japan. The Alliance business saw continued 30% growth both inside and outside
Japan, and the company posted overall year‐on‐year growth of 2%.
In profit, as mentioned when we announced our guidance, depreciation of ourYamaguchi Factory in the Alliance Business began in the 1st quarter. Also, expenses
were incurred that were expected in the 1st quarter, so profit is approximately onplan.

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Next is Blood Management.
Revenue saw a 1st quarter decrease due to some sales happening ahead ofschedule at the end of last fiscal year, depressing April 2019 sales. In addition, there
was negative FX impact; all told, revenue growth came out negative year‐on‐year.
Profit sustained heavy FX impact, and some R&D expenses happened earlier thanexpected, resulting in double‐digit negative profit growth. However, this wasapproximately in line with our quarterly plan expectation.

8Next, the major topics from the quarter.
Terumo instituted staggered working hours and improved teleworking system aspart of its promotion of work style reform. We also strengthened our corporate
identity and values system, while restructuring executive compensation, bothmeasures toward stronger corporate governance.
In business, there was a lot of news related to accelerated deployment oftherapeutic devices by the Cardiac and Vascular Company: The neurovascular
product WEB launched in the United States, while stentriever Tron FX launched inJapan. The company also acquired exclusive sales rights for a drug‐eluting balloon
from the US company Orchestra Biomed.

9This slide shows our new product pipeline for this fiscal year. Currently, productlaunches are on schedule.

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As I mentioned, we acquired exclusive sales rights to the drug‐eluting angioplasty
balloon "Virtue" from a US company called Orchestra Biomed.
The product is the first and only non‐coated drug‐eluting angioplasty balloon thatdelivers a proprietary bioabsorbable, sustained‐release formulation of sirolimus, thegold standard drug for drug‐eluting stent.
The product has received "Breakthrough Device Designation" from the UnitedStates FDA. We plan to begin clinical trials in 2020 and initially launch in the USwithin a few years of that.
That concludes my explanation. Thank you.

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