“FY17 Summary”
y“Evolution of Globalization”
Terumo Corporation
President and CEO
Shi ji SSatoShinjirotMay 9,9 2018

FY17 Summary
 Best‐ever Sales and Profit: Start Toward Achieving the Mid‐ to Long‐term Growth
Strategyg
 Integration of three FY16 acquisitions proceeding beyond expectations
 Allll companies
i maded progress, withi h Generall Hospitali l andd Bloodl d Management growing
iin focus areas
 Strengthened
Stthd operationaltil functions
f ti
towardtd sustainablet i bl growthth
Production: Increase capability, including personnel; global optimization(Y(Yamaguchi,hi Vietnam,Vi t
US WestW t Coast,C t CostaC t Rica)
Ri )Development: Create/strengthen systems(Corporate R&D,R&D Mastery Center
Center, Bay Area Innovation Lab)
Comprehensive strengths: Coordination across businesses, inter‐organization HR rotation,
Global Meetings held by CXOs,
CXOs and etc.
etc
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Integration of Three FY2016 Acquisitions Proceeding beyond Expectations
 Sequent Medical (US)
Quickly, completely integrated functions from production to sales
Launched easy‐to‐handle,easy to handle lower
lower‐profile
profile product in Europe
Europe, with expectations for application tobroader range of cases
Trials proceeding smoothly toward FY19 US approval Vascular Closure Device BusinessOvercame natural disaster and expanded sales
Emphasized its clinical value to increase usage/market share (upper single‐digit YoY growth)Acquired large bore vascular closure device to enhance product portfolio
in addition to Angio
Angio‐Seal
Seal (announced on Mar,Mar 2018)

Bolton Medical (US)Arranged organization to maximize product and regional synergies
synergies. Began deploying new brandfor the businessLaunch new product: Next‐generation thoracic strent graft “RelayPro” in Europe
Trials progressing well in US and Japan© Terumo Corporation

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General Hospital and Blood Management growing in focus areas
 General Hospital General hospital products: Steady growth for advanced infusion system

Needleless System“Surplug AD”

 Drug & Device: Pain management products “Acelio” andnewly introduced adhesion barrier “AdSpray”drove the growth

Closed anticancer
drug infusion system“Chemosafe”

Adhesion barrier“AdSpray”

Antipyretic analgesics“Acelio”

Japan Made a major breakthrough Alliance: Accelerated B2B mainly outside Japan.
of prefillable syringe for biologics “PLAJEX”

Ready‐to‐Fill Polymer Syringe“PLAJEX”

 Blood Management
Blood center business: Expanding automated blood component processing system
Expand new therapeutic apheresis treatment throughout the world
Centrifugal apheresis system”S t Optia””SpectraO ti ”

as a leader in this arena.
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Evolution of Globalization© Terumo Corporation

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Globalized Revenue
FY08

FY98

Asia,AsiaandChinaFY17Asia,Asia
etc.
China

Asia,etc.
China

USJapan

USEuropeJapanJapanEuropeUSEurope© Terumo Corporation

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Track Record of Terumo’s Globalization
Evolution of Globalization
 Uniform globalization + Selective regional strategy
 CXO management + Leverage global talents(billion JPY)
700

Efficient Globalization600

 Uniform globalization under business‐ledbusiness ledmanagement Regional holdings company system

Gain Foothold
for Global Management500400
300200 Cross boarder M&A to reinforce business infrastructure Direct sales transition and expansion of sales network

Overseas

Establish
Production System in Asia Fostered Asia as production center(China, Philippines, etc.)

100

Japan0FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17
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Market, Terumo’s Position, and Its Strategic Direction Vary by Region
Changes in the Market

USEUJPN• Consolidation of users,
GPOs, and competitors• Pursue medical value• Biopharma companies
gaining greater presence• Tightened regulation• Biopharma companies
gaining greater presence• Consolidation of users andGPOs• Disease‐oriented approachacross hospital department

China• Government’s treatment fordomestic products• Reform distribution network

India• Growing middle‐classmarket• Introduced price regulation
for some products

TTerumo’s’ P
Presence

LowHigh

Blood Vascular

CVTIS
Hospital
System Access
TIS

Alliance Thera- Neuropeuticl
Bl d Vascular
Blood

CV

Hospital TIS
System Access
TIS

Alliance Thera- NeuropeuticBlood Vascular

CVTIS
Hospital
System Access
TIS

Alliance Thera- NeuropeuticBlood Vascular

CVTIS
Hospital
System Access
TIS
Alliancea ce Thera- NeuropeuticBlood VascularCV

Hospital TIS
System Access
TIS

Alliance Therapeutic

NeuroDirection

Major Initiatives

ptherapeuticpbusiness
Expandarena and complete the fullset of business function• Approach GPO by group asa whole• Provide training andconsultation• Develop new treatment

Leverage the existing
infrastructure and expand
market presence• Reinforce the function ofRegulatory Affairs• Promote alliance business(General Hospital Company)• Sales activities as group as
Return to growth trajectory
a wholethrough making maximum use • Disease‐oriented approach• Actively seek for newof leader positionbusiness opportunity
ppy

Expand therapeuticbusiness and crystalize
a localization strategy• Cope with treatments fordomestic products andlocalization• Reinforce direct marketing

Build infrastructure andpromote market strategy for
respective
i businessb iarea• Double brands (premiumprice and standard price)• Establish
stab s ttrainingag Labab topromote education© Terumo Corporation

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Pursue Regional Strategy for China and India
 Strengthen direct marketing Transition out of distributor dependence through adopting two‐invoice system Further utilize Hangzhou Factory for advanced and multi purposes Begin Neuro products production. Automatize Hospital products production
 Cope with domestic products and localization thru B2B and alliance with local players
 In addition to Wego for peritoneal dialysis and AngioCare for renal denervation
catheter, study further potential alliance with local players
 Deploy a double brand to cover middle‐class market
 Introduce low‐cost products (oxygenators, etc.)
 Enhance education and training; open “Terumo India Skill Lab”
 Utilize Penpol factory to lower advanced blood systems cost, and study local launch Leverage local IT talents to improve group operations efficiency
 Example in BCT: Obtain data in US, use time difference to analyze data in India,
building a 24‐hour R&D system© Terumo Corporation

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Invigorate Human Resource and Organization
 Boost collaboration across businesses mainly driven by CXO
 Horizontal activities such as CXOCXO‐ledled global meeting are in full swing

Asia Appoint Chief Human Resource Officer (CHRO) and promote
new global
l b lhhuman resource strategy
t tInteractive, and multilateral
Leverage of human resource
China

EUUSJPN Leverage global talents

Asia

ChinaEUUSJPN As Terumo group, appoint global
talents beyond the frame ofregion and organization

 Bolster the brand

Jim Rushworth
CCO for entire TIS

Dragica Paunovic,M.D.
Probir Das
Marco Chiado Piat
CMO for entire TIS Regional Representative Sr. VP of overseas alliance
off AsiaAi

 Vascutek + Bolton ‐> established Terumo Aortic

 Instill corporate brand© Terumo Corporation

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IR Contact
Terumo Corporation
Corporate 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 notintended to be guarantees of future events or performance. 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, fluctuationsof foreign exchange rates, and state of competition.
Th market
Thek sharehinformation
i fi ini thishi presentation
i iis partly
l dderived
i d fromf
our own iindependentddresearch.
h© Terumo Corporation

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