Terumo CorporationMay 13, 2019

Q&A Session at the Financial Results Briefing
for the Fiscal Year Ended March 31, 2019
Outlined below are the principal Q&As from the financial results briefing of May 9, 2019. Certain
details have been expanded or modified to provide readers with a deeper understanding of Terumo
Corporation’s performance and activities.
Q1: A comparison of the original FY2018 guidance and actual FY2018 results shows that revenue
from the Cardiac and Vascular Company was 12.5 billion yen lower than the guidance.
Within this decrease, what is the approximate impact from shipping delays at Ashitakafactory?
A1: As we revised the guidance on the financial announcement of FY2018 Q1, the impact onrevenue from the shipping delays at Ashitaka factory was approximately 11.0 billion yen.
Another factor was that sales of drug-eluting stent (DES) did not grow as much as initiallyexpected. On the other hand, the neurovascular business performed well, and made a positive
impact on the revenue. All in all, the revenue in FY2018 results decreased by 12.5 billion yen
in comparison to the original guidance.
Q2: A comparison of the FY2018 guidance and actual FY2018 results shows that while revenue
outperformed, operating profit failed to beat the guidance. What caused it to fall short?
A2: The difference in operating profit between the FY2018 guidance of 108.0 billion yen and theactual result of 106.6 billion yen is 1.4 billion yen. The cause was that since we obtained
regulatory approval for WEB in the neurovascular business earlier than initially expected.
Therefore, we incurred milestone payment of 2.0 billion yen in research and development
expenses earlier.
Q3: What made revenue for the Cardiac and Vascular Company in Japan look weak in theFY2018 results?
A3: First of all, Shipping delays from Ashitaka factory impacted revenue in the TIS business.
Secondly, there was the impact of NHI reimbursement price revisions on drug-eluting stents(DES) in Japan. In addition, we failed to focus on sales activities for DES against newly
launched products from competitors in a timely manner since we put all our efforts to recoverfrom shipping delays at Ashitaka factory. Thirdly, the shipping delays slowed the launch ofPTCA balloon "Ryurei," coupled with the fact that we had a hard time continuing theshipments of intravascular ultrasound systems (IVUS), which were expected to create
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 CorporationMay 13, 2019synergies in combination with DES, Fourthly, we bought inventories of stent graft
manufactured by Bolton Medical, which we acquired in FY2016, due to business transition todirect sales model in Japan. Above are the main contributing factors.
Q4: On adjusted operating profit variance analysis in FY2018, what factors largely increased“gross margin” in the fourth quarter?
A4: First of all, growth in revenue for the Cardiac and Vascular Company's TIS business andproducts in Blood Management Company improved the product mix. Secondly, higherproductivity accompanying the start of full-scale operations at the Yamaguchi factory lowered
manufacturing costs.
Q5: A comparison in adjusted operating profit variance analysis in FY2018 results and FY2019
guidance shows only a slight increase in the gross margin. What was the cause?
A5: This was due to the cost of preventing a recurrence of shipping delays reflecting the Ashitaka’sincident, in addition to the increase in depreciation expenses for Yamaguchi factory. While weanticipate improvements from the product mix, this was offset by the aforementioned factors,
resulting in a forecast for a slight increase.
Q6: What was global sales performance for drug-eluting stents (DES) in FY2018? In addition,
how much do you expect to sell it globally in FY2019.
A6: Global sales performance for FY2018 was around 17.0 billion yen, which was a decline of
17% year on year. The main factors behind this decline were the impact of NHI
reimbursement price revisions in Japan and the impact of new products put on the market bycompetitors. As for the FY2019 guidance for revenue, we are aiming for about 20.0 billion
yen excluding Essen Technology's DES in China, the same level of revenue in FY2017 before
the shipping delays at Ashitaka factory.
Q7: What is the current status of training for WEB intrasaccular aneurysm treatment device in theUS?
A7: Physicians show strong interest in the training and it is proceeding smoothly. We have been
selling to hospitals and physicians who completed the training and we plan to keep focusing
on the training in FY2019. We also expect gradual increase in sales.
Q8: In “FY2019 Annual Guidance: Adjusted Operating Profit”, is there any one-time expense? Inaddition, what is the depreciation plan from IT investment going forward?
2The 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
May 13, 2019
A8: Other than the impact of foreign exchange fluctuations, the one-time factor is expenses for
Medical Device Regulation in EU. It depends on the upcoming schedule for regulatorycompliance, but at present we expect that over the coming four years, the highest cost impact
would be in FY2019. As for the IT investment, there will be depreciation cost from global
implementation of SAP. As the implementation throughout Terumo Group proceeds, weexpect gradual increase in the depreciation cost. However, the amount of year on year
increase will gradually decrease.
Q9: In FY2019 Annual Guidance: Adjusted Operating Profit, what is the factor in pushing up
increase of SG&A expenses compared to other years in the past?
A9: Additional expenses to achieve higher sales growth of WEB intrasaccular aneurysm treatment
device and of stent-grafts, as well as enhanced promotion to recover the loss from shipping
delays at Ashitaka factory in previous fiscal year will push up expenses.
Q10: Adjusted operating profit in the FY2019 Annual Guidance will increase by 7.6% in the first
half, but by 1.5% for the full year. Why is the growth ratio expected lower for the secondhalf?
A10: In FY2018, the impact from shipping delays at Ashitaka factory was huge in the first half,while the financials were recovered and good in the second half. Therefore, the expected year
on year growth ratio is larger in the first half of FY2019.
Q11: The impact of JP reimbursement price revision scheduled in October 2019 is mentioned as¥3.0 billion in FY2019, but that looks large compared to ¥5.0 billion annual impact for theFY2018 annual guidance. Why is it?
A11: The impact of JP reimbursement price revision was small in FY2018 because overall revenue
was less due to the shipping delays at Ashitaka factory. Furthermore, when the prices wererevised in April 2018, there was some positive impact also for infusion solutions etc., which
mitigated the total negative impact in FY2018. In addition, generally our revenue is higher inthe second half than that in the first half, so we usually expect larger impact of JP
reimbursement price revision in the second half.
Q12: Which products will be the major sales contributors in new product pipeline in FY2019?
A12: The major sales contributors will be WEB intrasaccular aneurysm treatment device by
neurovascular business and Ryurei PTCA balloon by TIS business in Cardiac and VascularCompany; Fentanyl injection, the narcotic analgesic for postoperative pain management in
3
The 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 CorporationMay 13, 2019
General Hospital Company; as well as FINIA fill and finish system for cell therapy processingin Blood Management Company.
Q13: There was a message about strengthening global operations in the presentation, but was it
fully planned in the Mid- to Long-term Growth Strategy, or will it incur additional expenses
to those in the original plan?
A13: Under the current circumstances, we believe it is essential that we invest for strengthening
global operations to carry out the Mid- to Long-term Growth Strategy, especially forsustainable revenue growth. A positive example is the higher growth expected in the alliancebusiness and ongoing up-front investments to enable it. On the other hand, this action will
increase capital expenditures more than we expected, but we aim to mitigate this impact
within the period of the Mid- to Long-term Growth Strategy, through efforts such as
improving production efficiency and pursuing synergies from enhanced collaboration among
Terumo Group.

4The 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.