Terumo Corporation
February 4, 2014

Q&A at Financial Announcement for Q3 of FYE Mar. 2014
The principal Q&A given during financial announcement for Q3 of FYE Mar. 2014 held on
February 4, 2014 are presented as follows. Certain details have been expanded or modified toprovide readers with a deeper understanding of Terumo Corporation’s performance and activities.

Q1：Regarding slowdown in General Hospital, which had greater impact, market
environment changes or business-related? How likely the performance of General
Hospital business will improve in Q4?
A1：Originally, we had great expectations on new products including safety IV catheter
needle “SURFLO V3”, however, its production ramp-up has been taking much
longer time than expected. The full recovery during this fiscal year will be difficult.
Nevertheless, it has bottomed and the light is getting brighter. We expect improved
production ramp-up, sales expansion, and profit recovery to some extent.
Meanwhile, the price erosion and competition in the market has been tougher thananticipated. We expect this trend continues for a while. We will overcome suchchallenging situation by new product releases and sales expansion of smart pump.
Q2：Compared to Nobori, how is the profitability of the new DES “Ultimaster”? Will thecompany replace Nobori with Ultimaster?
A2：As for Nobori, we have been paying a royalty fee to Biosensors for its polymer anddrug technology. Since “Ultimaster” has been developed completely in-house, it isexpected to have much higher profitability. We will switch to Ultimaster at theopportune moment.
Q3：What is the progress of quality management system improvement at TCVS? Whatabout cost?
A3：We received FDA’s audit in January as planned. Our quality management system
improvement efforts are progressing steadily toward recertification. The cost ofinvestment was 0.8 billion yen in Q3 and 3.5 billion yen for year-to-date. The
annual projection of 4 billion yen remains unchanged.
Q4：To achieve annual operating profit forecast of 70 billion yen, the company will needto increase Q4 O/P by 4 billion yen (to 21.7 billion yen) over Q3 O/P of 17.8 billion.
1
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 on 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 of competition. The market share information in this presentation is partly derived from our own independent research.

Terumo Corporation
February 4, 2014
What particularly will drive such increase in Q4 O/P?
A4：In addition to currency gain, we envisage profit increment by sales increase. The
contribution of sales increase will be large. In Cardiac & Vascular business, the new
PTCA balloon catheter “Hiryu Plus”, which was launched in November in Japan,
and the line extension of peripheral stent “Misago Long” which was just launchedin February in Japan, will drive growth. In Blood Management business,
automated blood component collection system “Trima”, which Q3 order placementin Japan was moved back to Q4, will drive growth as well.
Q5：Historically, the company’s Q4 gross margin and operating margin are lower thanQ3. How likely the performance of General Hospital business will improve in Q4?
How is the most recent performance in General Hospital?
A5：As for pump, in Japan order placement tends to be increased at the end of hospitalfiscal year. We have a certain amount of prospect for order and already built enoughinventory to cover that. As for SURFLO V3, its situation has been improving, and it
has received a very high evaluation from medical professionals. Toward Q4, webelieve that we will be able to steer the situation on a good course.
Q6：The forecast of CAPEX for this fiscal year increased by 5 billion yen. But, theforecast of Depreciation & Amortization remains unchanged. Why is that?
A6：The CAPEX forecast was revised up because we advanced a part of investment,
which was originally planned in FY2014. The same amount will thereby be reducedin next fiscal year. Since the invested equipments are not operational yet, it doesn’t
affect depreciation.
Q7：Is peripheral stent for below-the-knee, which will be launched in EU, indicated also
for popliteal?
A7：In CE Mark approval, there is no specific indication for lesion / artery. Considering
the size to be available, it will mostly used for lesion in popliteal and below theknee.
Q8：Compared to Q2, gross margin in Q3 was lower. What were major factors?
A8：Decline in gross margin was mainly caused by some General Hospital products. Incontract manufacturing business in Drug & Device, order placement was moved
from Q3 to Q4. DM business sales in Q3 were weaker since its Q2 sales were2
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 on 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 of competition. The market share information in this presentation is partly derived from our own independent research.

Terumo CorporationFebruary 4, 2014
exceptionally strong. These highly profitable products declined in sales.
Additionally, price erosion of other hospital devices affected gross margin. We
expect the sales of products, which was affected by a delay of order placement or
seasonal factors, will recover to some extent in Q4. Moreover, we will increase grossmargin through improvement of productivity for new products.
Q9：How much of impact by reimbursement price revisions in Japan would thecompany expect in FY2014?
A9：Since we are in the middle of information collection, it is too early to know. We don’t
expect that it will exceed our original assumption substantially.
Q10：In regard to progress compared to forecast, both sales and ordinary income areclose at 75% of forecast. Are these about on schedule?
A10：These include currency gains. We acknowledge that we are behind forecast.
Q11：For Q3 year-to-date, there is foreign exchange gains of 4.6 billion yen. How would
the company expect it to be at the end of fiscal 2013?
A11：At the very end of third quarter, the yen weakened dramatically to 105 yen to thedollar. The account receivables in the foreign currency are evaluated by the period
end spot exchange rate of 105 yen, not by the average exchange rate of 100 yen.
We project average rates of 102 yen to the dollar in the fourth quarter. Therefore,
we expect foreign exchange gains at the end of fourth quarter to be slightly
smaller.

3
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 on 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 of competition. The market share information in this presentation is partly derived from our own independent research.