[Terumo Corporation] Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2021: Reference

Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2021: Reference
Analysis of Business Performance
1. Overview of Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2021
(1) Overview of Consolidated Business Results
In the first three quarters of the current fiscal year (from April 1 to December 31, 2020), in the healthcare market
there was a decline in demand from postponement of elective procedures, the decline in exams and diagnostics,
and the decline in the number of days of hospitalizations, etc. for various clinical departments, especially inApril and May due to the major impacts of the novel coronavirus disease (COVID-19) pandemic. From July toSeptember, demand recovered somewhat as some procedures that had been postponed were performed. FromOctober to December, there was a resurgence of COVID-19 infections particularly in Europe and the Americas,
but the impacts on operations of medical institutions were limited. The Company saw impacts emerge fromdeclining demand at Cardiac and Vascular Company, but impacts on General Hospital Company and Blood andCell Technologies Company were minimal. Also, demand increased for certain products. Financial results forthe first three quarters indicate the entire company was able to mitigate the impacts of the COVID-19 pandemic
to a certain degree.
Financial results for the first three quarters of the fiscal year ending March 31, 2021 are as follows:

Revenue
Gross profit
Adjusted operating profit
Operating profit
Profit before tax
Profit for the period
Profit for the period
attributable to ownersof the parent(million JPY)
Growth excluding theimpact of foreignexchange rates (%)

Q1-Q3
FYE3/2020

Q1-Q3
FYE3/2021

Growth (%)

470,144258,635
98,41986,25085,487
66,762448,628
241,268
88,48975,272
74,92858,502(4.6)(6.7)(10.1)(12.7)(12.4)(12.4)

(3.3)
(4.9)
(7.6)
(10.2)－－

66,89358,601(12.4)－

Revenue by region for the first three quarters is as follows:(million JPY)
Growth excluding theimpact of foreignexchange rates (%)

Q1-Q3
FYE3/2020

Q1-Q3
FYE3/2021

Growth (%)

Japan147,842

148,3490.3

0.3

Europe88,73887,547

(1.3)

(2.1)

Americas141,561

131,132

(7.4)

(3.7)

Asia and others

92,00281,598(11.3)(9.6)

Overseas total

322,302300,279

(6.8)

(5.0)

Total

470,144448,628

(4.6)

(3.3)

Region[Terumo Corporation] Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2021: Reference

Revenue
Revenue totaled 448.6 billion JPY, a decrease of 4.6% versus the same period in the previous fiscal year.
In Japan, overall revenue increased by 0.3% year on year. The impacts of the COVID-19 pandemic on Cardiacand Vascular Company were smaller than other regions, and in General Hospital Company, there was risingdemand for infection control products and revenues in the Alliance division and of narcotic analgesic wererobust.
Revenue overseas declined by 6.8% in comparison with a year earlier. The impacts of the COVID-19 pandemic
on General Hospital Company and Blood and Cell Technologies Company were small, but these same impacts
were larger for TIS division (interventional devices) in Cardiac and Vascular Company.
Gross profit
Gross profit came to 241.3 billion JPY, a decrease of 6.7% compared with the previous fiscal year, reflecting adecline in revenue mainly due to the impacts of the COVID-19 pandemic on Cardiac and Vascular Company.
Adjusted operating profit
In the period under review, adjusted operating profit came to 88.5 billion JPY, a decrease of 10.1% year onyear, due to the decline in gross profit, despite efforts to curtail certain selling, general and administrativeexpenses.
Adjusted operating profit factors out amortization expense for intangible assets obtained during acquisitions andone-off income and expenses from operating profit. In addition, adjusted operating profit is consistent withsegment profit. We are disclosing adjusted operating profit as we are using it as performance indicators.
Operating profit
Operating profit came to 75.3 billion JPY, a decrease of 12.7% year on year, owing to the decrease in adjusted
operating profit.
Profit before tax
Profit before tax was 74.9 billion JPY, a decrease of 12.4% versus the same period a year earlier owing to thedecrease in operating profit.
Profit for the period attributable to owners of the parent
Profit for the period attributable to owners of the parent totaled 58.6 billion JPY, a decrease of 12.4% year onyear, driven by the decrease in profit before tax.

[Terumo Corporation] Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2021: Reference

Revenue results by company are as follows:
The segment previously named as “Blood Management Company” was changed to “Blood and Cell
Technologies Company” from the fiscal year ended March 31, 2020. This change in name does not affect thesegment information. The name of reportable segment for the first three quarters of the fiscal year ended March31, 2020 was also revised as “Blood and Cell Technologies Company”.

Q1-Q3
FYE3/2020

Q1-Q3
FYE3/2021

Growth (%)

Revenue

263,473

238,405

(9.5)

(8.3)

(Japan)38,17836,608

(4.1)

(4.1)

(Overseas)

225,294

201,796(10.4)(9.0)

Revenue

127,786

129,023

1.0

1.5(Japan)100,474

102,594

2.1

2.1(Overseas)

27,311

26,429

(3.2)

(0.8)

Revenue

78,71781,0072.9

5.7(Japan)

9,022

8,954

(0.7)

(0.7)

(Overseas)

69,69572,053

3.4

6.5

Segment

Cardiac andVascular Company

General HospitalCompanyBlood and Cell
Technologies
Company(million JPY)
Growthexcluding
the impact offoreignexchange
rates (%)

Cardiac and Vascular Company
In Japan, sales were driven by extracorporeal membrane oxygenation (ECMO) systems in Cardiovasculardivision along with flow diverter in Neurovascular division, but revenue declined because of the significant
impacts of the COVID-19 pandemic on other divisions. Overseas, the same impacts were significant on TIS
division (interventional devices) in the Americas. Additionally, in China, Neurovascular division was impactedby the order booking timing of distributors. Accordingly, revenue in Cardiac and Vascular Company totaled
238.4 billion JPY, a decrease of 9.5% year on year.
General Hospital Company
In Japan, the COVID-19 pandemic impacted many products, but sales were driven by infection control products
and narcotic analgesic in Hospital systems division. Globally, the B2B business with pharmaceutical companies
in Alliance division grew. Reflecting these, revenue in General Hospital Company was 129.0 billion JPY, anincrease of 1.0% versus the period a year earlier.
Blood and Cell Technologies Company
In Japan, sales of blood center products declined slightly due to the slowdown in demand for blood preparations
caused by the impacts of the COVID-19 pandemic. Overseas, therapeutic apheresis systems and cell processing
products saw a slowdown in demand for the same reasons, but there was an increase in collection demand for
COVID-19 convalescent plasma therapy and sales were driven by new software for blood component collection
systems. Consequently, revenue in Blood and Cell Technologies Company totaled 81.0 billion JPY, a rise of
2.9% year on year.

[Terumo Corporation] Financial Results for the First Three Quarters of the Fiscal Year Ending March 31, 2021: Reference(2) Overview of Consolidated Statement of Financial Position
Total assets stood at 1,257.8 billion JPY, an increase of 16.4 billion JPY. This was mainly owing to an increase inproperty, plant and equipment of 14.5 billion JPY from investments in manufacturing facility.
Total liabilities came to 481.4 billion JPY, a decrease of 5.1 billion JPY. This was mainly attributed to an increase inbonds and borrowings of 9.0 billion JPY due to long-term loans payable, despite the redemption and partial
conversion of bonds payable, which offset the decline in trade and other payables of 18.7 billion JPY due to thepayments related to facilities.
Total equity was 776.4 billion JPY, an increase of 21.5 billion JPY. This mainly reflects an increase from posting
profit for the period of 58.5 billion JPY and an increase from allocating treasury shares for the conversion ofconvertible bond-type bonds with subscription rights to shares of 6.4 billion JPY, compared to a decrease of 21.1
billion JPY due to the payment of dividends from retained earnings, while the booking of other comprehensive
income associated with the impacts of yen strength in FX resulted in a 22.4 billion JPY decline.
(3) Forecasts, including the Consolidated Financial Results for the Fiscal Year Ending March 31, 2021
At present, we must continue to monitor risks such as uncertainty about subsequent waves of COVID-19 infections
and risks posed by a drop in demand and supply chain interruptions caused by these impacts. Nevertheless, we plan
to pour energies into the introduction and expansion of highly value-added products that will boost the quality andefficiency of healthcare, along with further improvement to manufacturing costs, and effective use of selling, generaland administrative expenses.