Financial Results for the Third Quarter of
Fiscal Year Ending March 31, 2021 (FY2020)

February 4, 2021

Naoki Muto
Chief Accounting and Financial Officer
Terumo Corporation

I am the CAFO, Muto. I will now explain the 3rd-quarter results forthe fiscal year ending March 2021.

1

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 beguarantees of future events or performance. Accordingly, it should be noted that actual results may differ fromthose forecasts or projections due to various factors. Factors affecting to actual results include, but are notlimited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, andstate of competition.
The market share information in this presentation is partly derived from our own independent research.
Information about products (including products currently in development) which is included in this material is
not intended to constitute an advertisement or medical advice.

Terumo Corporation
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp©TERUMO CORPORATION

2 / 222

Highest-ever Quarterly Revenue and Adjusted Operating Profit(billion JPY)

FY19 Q3YTDFY20 Q3YTD

YoY%

YoY%
(FXN)

Revenue

470.1

448.6

-5%

-3%

Gross Profit

258.6 (55.0%)

241.3 (53.8%)

-7%

-5%

SG&A Expenses

136.8 (29.1%)

130.7 (29.1%)

-4%

-3%

R&D Expenses

37.0 ( 7.9%)

35.9 ( 8.0%)

-3%

-2%

1.5

0.6

-

-

Operating Profit

86.3 (18.3%)

75.3 (16.8%)

-13%

-10%

Adjusted Operating Profit

98.4 (20.9%)

88.5 (19.7%)

-10%

-8%

Profit before Tax

85.5 (18.2%)

74.9 (16.7%)-12%

66.9 (14.2%)

58.6 (13.1%)-12%

109 JPY
121 JPY

106 JPY
122 JPY

Other Income and Expenses

Profit for the Year
Average Exchange Rate

USD
EUR

Revenue: Steady recovery in demand for Cardiac and Vascular. The COVID-19 negative impact onGeneral Hospital as well as Blood and Cell Technologies has been continuously minor
Adjusted Operating Profit: Year-on-year negative growth due to the revenue decrease.
Continuously controlled expenses based on priorities©TERUMO CORPORATION

3 / 22First, a summary of the overall results.
Sales revenue of the Cardiac and Vascular Company was greatly
affected by COVID-19 in the 1st quarter, but saw a steady recovery
in the 2nd quarter and then 3rd quarter. Impact on the General
Hospital and Blood and Cell Technologies companies remainedminor due to continued high demand for some products serving
COVID-19-related needs, resulting in a 5% year-on-year decrease
for the Group as a whole, and when excluding FX impact, a 3%
decrease to get closer to the level of the previous fiscal year.
Adjusted operating profit continued to see negative impact fromsales decline in the Cardiac and Vascular Company, while expenses
naturally fell due to limitations on activities, and our ongoing careful
evaluation of each outlay to control expenditures. This resulted in
8% negative growth when excluding FX impact, and 10% negative
operating profit growth, to show a notable recovery upon entering
the 3rd quarter.

3

Profit for the year was minus 12% year-on-year, another indicator ofrecovery acceleration in the 3rd quarter.
In the 3rd quarter, all companies saw improved product mix yearon-year, increasing gross profit and further leading to an
acceleration of profit recovery.
This resulted in Q3 being our best-ever standalone quarter for sales,
adjusted operating profit, and operating profit. Next slide, please.

3

Adjusted Operating Profit Variance Analysis(billion JPY)

6.8

12.2

0.6

G/P
decrementby salesdecrease
98.4

86.3

3.0

Gross
margin

3.5

1.6

Price
MDR
-0.9
-0.8
JP
IT
Reimburseinvestment
ment
-2.6
-0.9

FY19 Q3YTD FY19 Q3YTD
Operating
Adjusted
ProfitOperating
Profit©TERUMO CORPORATION

6.8

SG&A
decrease

R&D
decrease

2.4

FX
13.2

2.7
88.5

75.3

FY20 Q3YTD FY20 Q3YTD
Adjusted
OperatingOperating
ProfitProfit4 / 22This is the variance analysis of adjusted operating profit, comparedto the previous year.
“Gross profit decrement by sales decrease” was reduced by thegroup-wide positive growth of the 3rd quarter to 6.8-billion-yen,meaning that downward impact was reduced from where it was at
the end of the 1st half.
“Gross margin” accounted for a 3-billion-yen negative impact, due
to improvement in cross-company mix as Cardiac and Vascular
recovered, and as each company improved its product mix, toreduce downward impact from where it was at the end of the 1st
half.
“Price” was a 900-million-yen negative impact, slightly accelerated
from the 1st half by the recovery progress of Cardiac and Vascularcompany. In Q3, “Japan reimbursement” completed the cycle ofnegative impact by the revision that occurred at the previous yearʼs
October consumption tax increase, resulting in only a small increase4

from the 1st half, to minus 2.6 billion yen.
European MDR and IT Investment progressed as planned, resulting
in 800 million and 900 million yen negative impacts, respectively,
with increased spending year-on-year.
“SG&A decrease” was a 6.8-billion-yen positive impact, as
limitations on access to hospitals and reduced promotional andtravel costs continued, in addition to our careful control of each
expenditure.
“R&D decrease” had a 600-million-yen positive impact, as wereconfirmed the level of priority for each project while largely
maintaining R&D investment in projects that will contribute mid- tolong-term.
“FX” impact was the result of yen depreciation against the euro andother currencies, shrinking the impact from where it was at the endof the 1st half to minus 2.4-billion-yen year-on-year. Next slide,please.

4

Revenue by Region
Revenue

FY20 Q3YTDFY19 Q3YTD

Year-on-Year Revenue Comparison
billion JPY

100% = 448.6 B JPY

YoY%( ) FXN

33%

148.3
147.8

Japan

Japan: Stronger recovery in C&V quarter by quarter.
Positive growth in GH since Q2. TBCT is at previous

0%

year level
Europe: Positive growth in C&V since Q2.

-1%

87.5
88.7

EuropeComments

(-2%)

20%

Good momentum in GH and TBCT with double
digit growth
Americas: Mixed situation with a recovery and-7%

COVID-19 resurgence in C&V. Positive growth in(-4%)

GH and TBCT

33.4

-10%

China: Significant recovery as a whole

37.0

(-9%)

excluding timing issue for order from

-12%

Asia and Others: Slow recovery in all companies,(-10%)

due to lockdown etc. in some countries

131.1
141.6

Americas

29%
China

7%

Asia and

11%

Others48.2
55.0©TERUMO CORPORATION

distributors in Neurovascular

5 / 22

Next is revenue by region.
In Japan, the Cardiac and Vascular Company is recovering steadily
each quarter. The General Hospital Company made strong efforts to
supply COVID-19-related products including infection control,
resulting in continuation of its positive growth from the 2nd quarterand joining the Blood and Cell Technologies Company in recoveringto the same levels as the previous year. The region as a whole also
returned to previous-year levels.
In Europe, Cardiac and Vascular Company continued its positive
growth from the 2nd quarter as the other two companies grew indouble digits, to bring the group as a whole closer to the previous
yearʼs level.
In the Americas, the Cardiac and Vascular Company showed asteady recovery, but some impact from the COVID-19 resurgence
there showed in the latter part of the 3rd quarter.

5

In China, the impact of distributor order timing in the Neurovascularbusiness is gradually decreasing. Looking at the 3rd quarter on astandalone basis, it experienced mid-single-digit positive growth andoverall showed a notable recovery.
In Asia and others, there was some negative impact due tolockdowns in some countries, and each company is seeing a slow
recovery. Next slide, please.

5Revenue by Business Segment
RevenueYear-on-Year Revenue Comparison
billion JPY

100% = 448.6 B JPY

YoY%( ) FXN

53%

Cardiacand
Vascular

GeneralHospital

238.4

-10%
(-8%)

263.5

129.0

+1%

127.8

(+1%)

29%

18%

FY20 Q3YTDFY19 Q3YTD

Bloodand CellTechnologies

81.0

+3%

78.7

(+6%)

©TERUMO CORPORATION

Comments
There was a decrease in demand due topostponement of procedures.
Steady recovery in the performance in
Q2 and Q3
In addition to double digit growth inAlliance, increased demand for infection
control products as well as a new productfor pain management exceeded theoverall impact from decreased demand
Despite the impact by a decrease intherapeutic apheresis cases, saw positive
growth in the US and Europe driven bycomponent collection system

6 / 22

Next is revenue by company.
Year to date, elective procedure delays continue to impact theCardiac and Vascular Company, but recovery is occurring steadily
each quarter. Looking only at the three months of the 3rd quarter,
the company was at minus 2% year-on-year, so nearly back toprevious-year levels.
The General Hospital Company still had impact from overall
decreased demand, but the Alliance businessʼs double-digit growth,
combined with a new product in Pain Management and increased
infection control product demand, exceeded negative impact,
resulting in a return to positive growth.
The Blood and Cell Technologies Company experienced increased
demand for convalescent plasma and maintained positive growth,
continuously driven by the component collection system.
I will give more detail by company in the next slides.

6

Cardiac
and Vascular: Progressing Recovery in the Number of Procedures(billion JPY)

FY19
Q3YTD
263.5

FY20
Q3YTD

Major Topics

Impact( ) FXN

TIS: Despite the decreased demand among
all products, saw a progressing recovery withlow single digit negative growth since Q2

-17.4

238.4

-10%

Revenue

Adjusted
Operating
Profit
(%)

YoY%

(-8%)

68.8

(26%)
©TERUMO CORPORATION

56.0

-19%
(-16%)

Neurovascular: Saw positive growth in Q3
alone with a progressing recovery in thenumber of aneurysm treatments-3.6

Cardiovascular: Impact of the decreased
demand was mitigated by the increased
revenue of hardware in Japan-3.7

Vascular graft: Continued positive growthsince Q2

-0.3

Decreased due to the revenue decline.
Product mix was improved in Q3 alone with aprogressing recovery in TIS and Neurovascular(24%)
7 / 22

Here is Cardiac and Vascular Company.
Sales revenue was minus 10% year-on-year, representing a steadyrecovery.
The TIS business experienced some impact from the resurgence of
COVID-19 in the latter part of the 3rd quarter, but is showing a
steady recovery as the number of procedures increases.
The Neurovascular business turned to positive growth in the 3rdquarter, a sign of the business returning to its usual strong growthtrend.
CV still saw impact from delayed elective procedures, but that was
somewhat mitigated by increased sales of ECMO products in Japan.
The vascular graft business continued its positive growth from the
2nd quarter year-on-year, remaining steady.

7

In profit, there had been downward impact from reduced sales
revenue, but the progress of recovery in the high-profitability TIS
and Neurovascular businesses improved product mix so that thethree months of the 3rd quarter saw a drastic increase inprofitability. Next slide, please.

7

General : Exceeded the Impact of Decreased Demand by Solid
Hospital Sales of Alliance and Infection Control Products(billion JPY)

FY19
Q3YTD

FY20
Q3YTD

YoY%
( ) FXN

127.8

129.0

+1%

Revenue(+1%)

Major Topics

ImpactGeneral hospital products: The negative impact
due to the limited number of medical
examinations was mitigated by increased
demand for infection control products and pumps -1.7
Pharmaceutical: Sales decline in IV solutions
was mitigated by solid sales of pain
management products including a new product-0.8

DM Healthcare: Increased demand for
Healthcare products including thermometers etc. +1.6
Alliance: Continued double digit growth both
inside and outside Japan
Adjusted
Operating
Profit
(%)

19.8

20.5

+3%
(+4%)
(16%)

©TERUMO CORPORATION+2.2

Positive growth due to improved product mix bysolid sales of Alliance and Healthcare, as well as
continuous expense control(16%)
8 / 22

Next, the General Hospital Company.
Sales revenue continued to be impacted by limitations on patient
hospital visits, but, along with double-digit growth in pain
management products and the Alliance business, increased demandfor infection control products like thermometers and disinfectant
overcame the negative impact to push the company to positive
growth.
In profit, growth of high-profitability Healthcare products and theAlliance business improved product mix, which added to ongoing
expense controls toward increasing profit and improving profitability.
Next slide, please.

8

Blood and Cell
Technologies: Continuous Increase in Both Revenue and Profit(billion JPY)

FY19
Q3YTD

FY20
Q3YTD

YoY%

Major Topics

ImpactBlood center solutions: Driven by increasein collection demand for the COVID-19
convalescent plasma therapy as well assoftware update for component collection
system+3.1

Therapeutic solutions: Despite theremaining impact from the decreased
number of procedures, saw positive growthin Q3 alone-0.6( ) FXN

78.7

81.0

Revenue

Adjusted
Operating
Profit
(%)

+3%
(+6%)

10.4

14.4

+39%
(+46%)(13%)©TERUMO CORPORATION

Continuous large growth due to expense control
in addition to gross profit increase by better
product mix(18%)
9 / 22

Next is Blood and Cell Technologies Company.
In sales revenue, the Blood center solution business remains
challenged due to a global decrease in blood donors. However,along with high COVID-19-related demand for convalescent plasmain Europe and the United States, a software update to raisecollection efficiency contributed to increased sales of component
collection systems, driving the company as a whole.
In profit, continued expense controls focused on SG&A combinedwith progress in improving product mix with a higher proportion ofcomponent collection systems to improve profitability, and raise
profit drastically in this company as well. Next slide, please.

9Key Assumptions of FY20 Q4 Projection
Expect a decrease in demand due to COVID-19 resurgence mainly in the
US and Europe Current situation with restart of postponement in procedures in the US andEurope, etc. is negative for the performance Not expecting the situation to be worsened to the level in April and May 2020,as there are positive factors, e.g. start of vaccination as well as better
preparation and equipment in the medical front against COVID-19 pandemic

Started to adjust the operating level of production to optimize inventory
level, which was raised in Q1 for the purpose of BCP
While controlling SG&A Expenses to an extent, also plan to invest
appropriately based on the business performance to achieve rapid
recoveryControl R&D Expenses by prioritizing from the perspective of mid- tolong-term growth©TERUMO CORPORATION

10 / 22

I will now explain our thinking regarding the 4th quarter.
As I mentioned in the explanation of results, some businesses of
the Cardiac and Vascular Company did begin to see some impact
from the COVID-19 resurgence in the US and Europe in the latterpart of the 3rd quarter, around December. We are told that
restrictions are being strengthened in European countries, and thatin the US as well, over 100 hospitals are postponing elective
procedures.
Looking at the most recent sales results from January, they appear
likely to be down 10% or so from the average of the 3rd-quartermonths.
However, COVID-19 vaccinations have begun and medical settings
are raising with certainty their ability to handle the pandemic.
Therefore, we do not anticipate the same decrease in demand andnegative sales impact that we saw in April and May of 2020.
Regarding profit, we will begin adjusting our production level to10

gradually correct for inventory that we built up from a BCP
perspective when the first COVID-19 wave hit; we believe this will
be a burden on our gross profit.
We will continue to control our SG&A and R&D spending as we havein recent quarters.
Overall, we anticipate a slightly weaker 4th quarter than the 3rdquarter, which saw a combination of positive factors including good
product mix, but we are hopeful to bring 4th quarter results to alevel near the sales and profit of the 2nd quarter. Next slide, please.

10

Revision of FY20 Guidance(billion JPY)

Revenue
Operating Profit
Adjusted Operating Profit
Profit for the Year
Average Exchange Rate
(Predicted)

USD
EUR

Original
Guidance

RevisedGuidance

600.0

600.0

90.0

97.5

(15.0%)(16.3%)

108.0

115.0

(18.0%)(19.2%)

68.0

75.0

Annual: 106 JPY
Annual: 121 JPY

Changein amount
+7.5
+7.0
+7.0

Q4: 104 JPY, Annual: 106 JPY
Q4: 126 JPY, Annual: 123 JPY

Factored in the better Q3 performance than expected
No revision for the FY20 annual dividend proposal disclosed at the financial announcementin May 2020
©TERUMO CORPORATION

11 / 22

In line with our 3rd-quarter results and thinking regarding the 4th
quarter, we will revise our guidance upward.
In sales revenue, taking into consideration the impact of somelocationsʼ COVID-19 resurgence and uncertainty in the market, we
will maintain our guidance.
In profit, as I explained on the previous slide, the 4th quarter does
not appear to be as promising as the 3rd; but we nevertheless saw
a significant upswing in the 3rd quarter. With that included in theoverall picture, we will upwardly revise our guidance for adjusted
operating profit by 7.0 billion yen, operating profit by 7.5 billion yen,and profit for the year by 7 billion yen.
Although the fiscal year-end is only two months from now, we do
expect that with vaccinations progressing, overseas sales and otheractivity will rise. We anticipate that this, along with clinical trial andsales promotion tool-related expenses, will result in an increase ofsome percentage in SG&A compared to the 3rd quarter. However,11depending on how the COVID-19 resurgence goes, expenditures
could remain at the same level as those of the 3rd quarter.
Regarding dividends: Taking into account the continuing COVID-19
resurgence, uncertainty, and risks, we will maintain the guidance weissued in May. Next slide, please.

11

Major Topics in FY20 Q3
Corporate

Has received “GOOD DESIGN AWARD” for twenty five consecutive years

Cardiacand
Vascular

Launched the intrasaccular aneurysm treatment device “WEB” in Japan

Intrasaccular aneurysm
treatment device“WEB”

Increased production capacity for contract development and manufacturingorganization (CDMO) business at Yamaguchi factory
GeneralHospital

Pre-fillable syringe“PLAJEX”

Signed the agreement with the French company Diabeloop SA. for joint
development of automated insulin delivery (AID) solution
Received CE mark for the insulin patch pump “MEDISAFE WITH”

Automated insulindelivery system
Insulin patch pump
“MEDISAFE WITH”

Launched the platelet-rich plasma collection system “SmartPrep” in Japan
Blood and Cell
Technologies

Coalition set up to find solutions to the challenge of safe, sustainable andadequate blood in Africa©TERUMO CORPORATION

Platelet-rich plasmacollection system“SmartPrep”

12 / 22

Here are the major topics for the 3rd quarter.
We received Good Design Awards for multiple products throughout
the Terumo Group, receiving the award for the 25th consecutive
year.
Looking at company topics, we can see that the Neurovascular
product WEB and DM-related products made strategic progress. In
the Alliance business, as our CEO Sato mentioned in the 1st-halfearnings announcement, we are steadily expanding our CDMO
production capacity at Terumo Yamaguchi to prepare for thegrowing development pipeline of that business. Next slide, please.

12

FY20 New Product Pipeline
Category

Products
Steerable sheath

Coronary

Imaging
Oncology

PTCA balloon(manufactured by Essen
Technology)

Cardiovascular

China

IVUS catheter

JP
EU

Peripheral embolization plug

US

Generalhospital
Launched products
Pharmaceutical

JP, US Launched

Balloon guide catheter

EU

Carotid stentJP

Launched

Intrasaccular aneurysm
treatment device (WEB)JP

Launched

Oxygenator

JP

Launched

JP

Launched

Heart lung machine (re-launch)
Surgical stabilizer©TERUMO CORPORATION

Category
Vasculargraft

JP

Biodegradable drug-eluting
microsphere

Flow diverter
Neurovascular

Region Launch

Products

Region Launch

Stent graft for abdominal aortic
aneurysm

US

Launched

Syringe pumpJP

Launched

Safety IV catheter

JP

Syringe pump for open TCI

EU,
Asia

Launched

Strong opioid analgesic(Fentanyl citrate tape for 1 day use)JP

Launched

Continuous glucose monitoring
systemJP

To belaunched
in FY21

JP

Launched

JP

Launched

DM andconsumerBlood glucose monitoring system
healthcare
Thermometer

Global Launched

13 / 22

This is the final slide, and shows our pipeline status for the fiscal
year. I will omit the details, but new product launches are generally
on schedule.
With the COVID-19 resurgence and other factors, we must remain
vigilant. We will continue making our best management efforts toachieve our fiscal year guidance and return toward sustainablegrowth.
Thank you.

13

Reference©TERUMO CORPORATION

14 / 22

14

FY20 Q3YTD Revenue and Growth by Region(billion JPY)

Overseas

Business
Segment

Japan

Cardiac and
Vascular36.6 (-4%)

201.8 (-9%)

59.9 (-7%)

Out of C&V,
TIS and
Neurovascular

26.3 (-8%)

166.5 (-9%)

102.6 (+2%)

GeneralHospital
Blood
and CellTechnologies

Total

Subtotal

Europe Americas

Total

China

Asia

91.6 (-8%)

26.8 (-12%)23.5 (-12%)238.4 (-8%)

48.8 (-7%)

73.6 (-7%)

24.7 (-14%)

19.4 (-12%)

192.9 (-9%)

26.4 (-1%)

7.3 (+10%)

6.4 (+13%)

1.7 (-7%)

11.0 (-12%)

129.0 (+1%)

9.0 (-1%)

72.1 (+6%)

20.4 (+12%)33.1 (+7%)

4.9 (+17%)

13.6 (-5%)

81.0 (+6%)

148.3 (+0%)

300.3 (-5%)

87.5 (-2%)

131.1 (-4%)

33.4 (-9%)

48.2 (-10%)448.6 (-3%)(YoY%): FXN©TERUMO CORPORATION

15 / 22

15

Operating Expenses
FY19 Q3YTD(billion JPY)

FY20 Q3YTD

YoY

YoY%

YoY%
(FXN)

Salaries & Wages

66.6

68.7

+2.1

+3%

+5%

Sales Promotion

14.6

8.6

-6.0

-41%

-41%

Logistical Costs

10.3

10.6

+0.3

+3%

+4%

Depreciation &Amortization

13.9

14.2

+0.3

+2%

+4%

Others

31.4

28.5

-2.9

-9%

-8%

SG&A Expenses Total

136.8 (29.1%)

130.7 (29.1%)

-6.2

-4%

-3%

R&D Expenses

37.0 (7.9%)

35.9 (8.0%)

-1.1

-3%

-2%

Operating Expenses
Total

173.8 (37.0%)

166.5 (37.1%)

-7.3

-4%

-3%

©TERUMO CORPORATION

16 / 22

16

Quarterly Results(billion JPY)

FY19 Q3

Q4FY20 Q1

Q2

Q3(Oct-Dec)(Jan-Mar)(Apr-Jun)(Jul-Sep)(Oct-Dec)

Revenue

162.9

158.8

131.3

152.0

165.3

Gross Profit

87.2 (53.5%)

85.3 (53.7%)

68.9 (52.5%)

81.6 (53.7%)

90.8 (54.9%)

SG&A Expenses

47.2 (29.0%)

47.7 (30.1%)

40.1 (30.5%)

45.8 (30.2%)

44.7 (27.1%)

R&D Expenses

12.7 (7.8%)

13.6 (8.6%)

11.2 (8.5%)

11.9 (7.8%)

12.8 (7.7%)

Other Income
and Expenses

-0.2

0.4

0.5

-0.1

0.2

Operating Profit

27.1 (16.6%)

24.4 (15.3%)

18.1 (13.8%)

23.8 (15.6%)

33.4 (20.2%)

Adjusted
Operating Profit

31.4 (19.3%)

26.6 (16.7%)

21.7 (16.5%)

29.6 (19.5%)

37.2 (22.5%)

USD

109 JPY

109 JPY

108 JPY

106 JPY

105 JPY

EUR

120 JPY

120 JPY

119 JPY

124 JPY

125 JPY

Average
Exchange
Rate©TERUMO CORPORATION

17 / 2217

Adjusted Operating Profit: Adjustments(billion JPY)

FY19 Q3YTDFY20 Q3YTD

86.3

75.3

Adjustment 1. Amortization of acquired
intangible assets

+11.9

+10.8

Adjustment 2. Non-recurring profit or loss

+0.3

+2.4 *

98.4

88.5

Operating Profit

Adjusted Operating Profit<General examples of adjustment items>• Acquisition related cost
• Lawsuit settlement* FY20 Q3YTD main items in
Adjustment 2. Non-recurring profit or loss

• Impairment loss

Business reorganizing cost

+0.4

• Restructuring loss

Others+2.0

Amount• Nonlife insurance income• Loss on disaster• Other one-time profits & losses©TERUMO CORPORATION

18 / 2218

CAPEX, Depreciation and R&D Expenses
CAPEX & Depreciation(billion JPY)

89.5
80.0

Amortization of acquired
intangible assets
60.8
47.7

43.6 42.0

44.0

14.5

14.6

15.7

CAPEX
27.6

29.4

32.0

Depreciation

R&D Expenses
41.3

47.7

50.0

51.7
36.1
10.8
25.3

14.7
15.7
35.3

Lease depreciation(IFRS16) is not included in
FY19, FY20 Q3YTD resultsand FY20 GuidanceContinue investment inproduction capacity andspace, R&D as well as IT in
FY20

CAPEX = C.i.P. record basis

Further promote R&D
activities mainly for TIS,
Neurovascular and TBCT

48.0

Capitalized R&D expenses
are included in CAPEX

50.6
35.9

FY18:

FY17
©TERUMO CORPORATION

FY18

FY19

FY20 Q3YTDFY20 Guidance

2.4

FY19:

4.8

FY20 Q3YTD:

4.3

FY20 Guidance: 5.4

19 / 2219

Cash Flows
Operating CF+73.5

Investing & Financing CF-70.6(billion JPY)

19.2
40.3
Depreciation
andamortization

Incometaxes

22.6
Working
capitalincrease

10.0
CAPEX

Redemptionof bonds

70.0

40.0

51.7

74.9

Debt
repayment
Long-term
debt

21.1

Dividends

Profitbefore tax©TERUMO CORPORATION

209.6

169.8

166.9

Cash at theend of FY19

17.8
OthersCAPEX = C.i.P. record basis
Cash at the end of each period is equal to “cash and cash equivalents” on B/S

Cash at theend of FY20 Q3

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Foreign Exchange Sensitivity
Annual impact of 1 JPY depreciation(billion JPY)

USD

EUR

CNY

Revenue

1.7

0.8

2.4

Adjusted Operating Profit

0.0

0.5

1.3

<Reference> Impact when JPY is depreciated by 10%
North
Latin
America America

Adjusted Operating Profit©TERUMO CORPORATION

-0.1

1.0

EMEA

Asia

EUR

OthersCNY

Others

6.5

1.3

2.0

3.6

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21

The Status of Convertible Bonds
Detail of the bonds (issued in Dec. 2014)*After two-for-one stock split implemented in Apr. 2019

Maturity

Aggregateprincipal amount(billion JPY)

CouponConversion
Price
(JPY)

Contingent
conversion price(JPY)

Number of sharesrequired to be issued
for conversion

Dec. 2019

50.0

0.0%

1,912

2,486

Approx. 26 M sharesDec. 2021

50.0

0.0%

1,912

2,486

Approx. 26 M shares

Total

100.0

Approx. 52 M shares

The status of conversion (as of Jan. 31, 2021)
Amount of shares issued for conversion(% against the total amount of bonds)

Number of shares issued for conversion(% against total number of issued shares)

Convertible bonds
due Dec. 201950.0 B JPY (100.0%)

26 M shares (3.4%)

Convertible bonds
due Dec. 2021

49.0 B JPY (98.0%)

25 M shares (3.4%)

Total

99.0 B JPY (99.0%)

51 M shares (6.8%)

Bonds

Allocated treasury shares to the shares issued for conversion• Status of treasury shares: 4 M shares(at the end of Jan. 2021, treasury stock cost per share: 1,949 JPY, % against total number of issued shares: 0.5%)©TERUMO CORPORATION

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