Verification of GS26 Goals Roadmap

May 15, 2023

Shinjiro Sato

President and CEO

Terumo Corporation

Safe Harbor for Forward-Looking Statements and Use of Document
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 or performance. Accordingly, it should be noted that actual results may
differ from those forecasts or 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 ofcompetition. Information about products (including products currently indevelopment) which is included in this material is not intended to constitute anadvertisement or medical advice.
©TERUMO CORPORATION

2 / 195-Year Financial Targets (FY22 to FY26)
GrowthProfitability

Capital efficiency

Highsingle-digit

20%+10%+Revenue
Growth(5-Year CAGR)

OperatingProfit %(Before adjustment, achieve in 5years)

Aiming for revenue of 1 trillion
yen through continued growth
Assumption:‒ Impact of new M&A is not included for operating profit and ROIC
‒ 1 USD = 107 JPY, 1 EUR = 128 JPY©TERUMO CORPORATION

3 / 19

ROIC(achieve in 5 years)

Maintain ROE 10% or more

Awareness of Current Environment

AnticipatedDemandfundamentals
Healthy overall
No major change©TERUMO CORPORATION

Unanticipated

UnanticipatedInflation

FX fluctuation

Raw materials,
transport, energy cost
increases

Profit pressure fromimport price increases

4 / 19Anticipated

Strategy
Steady execution ofinitial year plan
No major revision

Confirming Growth Prospects
Main growth drivers

C&V

Sales trend

Therapeutic device expansion
Expand radial target areas
+9%

TMCS

CDMO pipeline expansion
+5%

TBCT

PI+11%

FY21GroupTotal©TERUMO CORPORATION

FY22

FY23

FY26Avg.

+9%5-year growth goal on track

Highsingledigits

5 / 19

C&V growth potential for GS26 achievement
GS26
Group-wide revenue

Growth drivers (vs FY21)

CAGR:
Terumo Corp.

High single-digit

C&V

High single-digit

TMCS

Middle single-digit

TBCT

Near double-digit

Expand radial target areas

650~600350

Alliance
Diabetes

FY2680** C&V therapy

Radial procedure penetration

New product launches

2026 Estimate
68%
More than 75%

Coronary

Coronary

Oncology

PeripheralarteryLess than 10%
More than 20%

Peripheral

Interventional
oncologyLess than 10%
More than 15%

Neurovascular

Less than 5%
More than 15%©TERUMO CORPORATION

800

TBCT innovations

FY212021

Neurovascular

Approachfrom wrist** C&V therapy* Access

Potential beyond GS26 plan

* Access

Coronary+3,000億円+

RDN in China (FY24 launch planned)
 DSS (Japan/US-centered launch during GS26)
Strong growth of DES Nagomi

New Nagomi popular, adding share in Japan Launch in EU, parts of Asia in FY23
 Considering future entry into US6 / 19

New Measures to Raise Corporate Value
More assertive growth strategy
More assertive M&A promotion
Focus areas: While maintaining multidirectional perspective, focus on areas such as Vein ,CDMO and Diabetes

Accelerate profitability improvement
Continue worldwide price policy review in FY23
Get VC2 results earlier to fight inflation pressure

Capital policy reinforcement
Transition from dividend payout ratio toward total return ratio
Improve capital effciency/Raise financial leverage

Sustainability management
Establish Sustainability Management Committee
Implemantation of future corporate value targets to executive officers©TERUMO CORPORATION

7 / 19

Roadmap to Earnings Improvements
FY22 to GS26 Margin Trend

GS26 achievement scenario
Business mix improvement and1 revenue expansion of high-profit businessesAchieve profitability in TBCT PI business

Expand CDMO business

Adjustments to product portfolio

Cost pass-throughs in response to inflationary
2 environments
TMCS Japan reimbursement price revision

Global-level price transfer

Product/business miximprovement+1%PI business
+1.5%

14.3%

1120%

32Pricepolicy
+1.5%

Group
Profitability
improvement(VC2)+2% or more

3 Comprehensive and accelerated cost reduction
Production, GBS, SCM and Procurement

Achieve 2% or more cost reduction in four years©TERUMO CORPORATION

FY228 / 19GS26

Production transfer to Costa Rica gets results from FY2023
MicroVention came first, other Terumo companies followed
First entry into Costa Rica

MicroVention
3rd Factory

TBCTTCV

MicroVention
2nd Factory
MicroVention
1st Factory

2011©TERUMO CORPORATION

Neurovasculartreatment devices
2019

2022

Transfusion, infusion,
Oxygenator blood circuit
collection systems
Blood treatment system kits
2023

9 / 19

VC2 Actions and Expected Effects
FY22 results / ongoing actions
FY22
Procurement

Logistics

Supportfunctions

 Domestic focused

direct/indirect materials costoptimization

 Procurement compliance

200.0

enhancements

 Completion of NA optimizations  Optimizations across all regions

analysis (delivery conditions /warehouse locations) Integration/centralization ofprocurement → payment
process (NA / EU) Expansion of offshoreProduction

 Global cost optimization

production(Vietnam, Costa Rica) Expansion of 3PL utilization

150.0

 Expansion of services tonon-accounting fields

100.0 Development of product-specificoptimal production method

50.0

 Labor force optimization via DXtransformation

 Minimize stock write-off via S&OPenhancements©TERUMO CORPORATION

10 / 190.0

FY23

FY24

FY25

FY26

20B JPY+TMCS Profitability Improvement Plan
FY23 to GS26 Margin Trend

Achievement scenario

1 Business mix improvement, andportfolio transformation

Accelerate PS business growth, CDMO pipeline expansion

Business/product mix improvement, andmore assertive M&ATake actions to unprofitable businesses & products

2 Price policy revisionPrice increases for wide-range product linesPrice revisions of medical products

15%

3
2110%

Structural transformation to3 balance cost reduction and growthIntegrate or exit sites



Reorganize, strengthen domestic sales organization(reduce SG&A)

Optimize Global Production©TERUMO CORPORATIONFY2311 / 19GS26

TBCT Profitability Improvement Plan
FY23 to GS26 Margin Trend

Achievement scenario

1 Recover from one-time costs
PI: Higher fix-cost burden due to volume shortfall

Blood center business： stabilization of supply chains

20%

3

22 Expansion of PI businessExceptional reviews from clients and donors

Improved profitability from further optimizations of RIKA



Solid turnaround to profit generation

18%

3 Reliable growth of blood center business

Profitability improvements through productions site transfer

Reliable growth / revenue improvements©TERUMO CORPORATION

FY23
12 / 19GS26

Blood and Cell Technologies’ core business returned to growth
Demonstrating a strong value proposition amidst global supply chain challenges

Plasma Innovations positioned to capture the value of investments in source plasma industry
 Infrastructure positioned for high-quality growth Continuing Limited Market Release steady deployment for initial customer CSL Plasma
 Initiating clinical trial for the next version of innovation

Invested in a state-of-theart single-use
sets production©TERUMO CORPORATION

New plasma center next to
CSL’s fractionation facility
at Kankakee, IL

14 / 19

Invested in contract
manufacturing capabilities toproduce Rika device and bottles

Proven Innovation Advancing Source Plasma Industry

RikaPlasma Donation SystemKinari
Device Management Platform

MyataCustomer Service Portal

Integrated Supply
Chain and Distribution

FDA cleared in 2022

State-of-the-Art
AutomatedManufacturing©TERUMO CORPORATION

Training & Simulation
Modules

15 / 19

Our Digital Ecosystem and the Impact to Customers
The Digital Ecosystem Benefits to Terumo BCT:
Optimizes processes for efficient utilization of resources
resulting in a leaner Plasma Innovations organization

Kinari

Device Management Platform Electronic software distribution
 Predictive analytics inform maintenanceTraining &Simulation Modules

Tailored e-learning fortechnicians and operators©TERUMO CORPORATION

Efficiency gains
within theplasma centersto reduce cost
per liter

16 / 19

MyataCustomer Service Portal
Automatic supply
replenishment

Appendix©TERUMO CORPORATION

17 / 19

TMCS Profitability Improvement Plan
1 Business mix improvement, andportfolio transformation123

Accelerate PS business growth, CDMO pipeline
expansion

Business/product mix improvement, andmore assertive M&ATake actions to unprofitable businesses & products

2 Price policy revision

18 / 19

Structural transformation

Price policy revision

Business mix improvement,and portfolio transformation

FY23

Sales increase

FX

SG&AInflation

FY22Mix improvement, priceincrease©TERUMO CORPORATION

Sales increase

FXSG&AInflation

Sales increase

FY21



Price increases for wide-range product linesPrice revisions of medical products

Structural transformation to3 balance cost reduction and growth

GS26



Integrate or exit sites



Reorganize, strengthen sales organization(reduce SG&A)

Optimize Global Production

TBCT Profitability Improvement Plan
1 Recover from one-time costs
321PIcore

FY23

GS26
19 / 19



Blood center business： stabilization of supply chainsExceptional reviews from clients and donors

Improved profitability from further optimizations ofRIKA

Solid turnaround to profit generation

3 Reliable growth of blood center business

Blood centerPI

Recover fromone-time costs

FX

One-time cost
recovery

FY22

Unfavorable mix

Sales increase©TERUMO CORPORATIONFXNew businessstartup cost

One-time costs

Inflation

Sales increase

FY21

PI: Higher fix-cost burden due to volume shortfall

2 Expansion of PI businessPIcoreProfitability improvements
through productions site transfer

Reliable growth / revenue improvements