Celebrating our 100th founding anniversary:
5-Year Growth Strategy with a 10-Year Vision
01 |Vision for the next 10 years

Shinjiro Sato, President and CEO©TERUMO CORPORATION

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Safe Harbor for Forward-Looking Statements and Use of Document
Among the information that Terumo discloses, the forward-looking statements including financial projections arebased 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 thoseforecasts 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.
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 notintended to constitute an advertisement or medical advice.
Terumo Corporation
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp©TERUMO CORPORATION

2 / 15Abbreviations
Abb.

EnglishAI
Artificial Intelligence
AKIAcute Kidney Injury
BBillion
B2B
Business-to-Business
BGM Blood Glucose Monitoring
C&V
Cardiac and Vascular Company
CABG Coronary Artery Bypass Grafting
CAGR Compound Average Growth Rate
CDMO Contract Development ManufacturingOrganization
CGM Continuous Glucose Monitoring
CMO Contract Manufacturing Organization
CSII
Continuous Subcutaneous Insulin Infusion
CSTD Closed-System Drug Transfer Device
CSV
Creating Shared ValueCV
Cardiovascular
D&D Drug & Device
DDS Drug Delivery System
DE&I Diversity, Equity & Inclusion
DMDiabetes ManagementDTx
Digital Therapeutics
DX
Digital TransformationEPSEarnings Per ShareESG Environment, Social, Governance
EUR Euro
FYFiscal Year
GHGeneral Hospital Company©TERUMO CORPORATION

Meaning in Japanese

Abb.

人工知能
急性腎障害
十億
法人向けの製品・サービス販売
血糖測定器
心臓血管カンパニー
冠動脈バイパス術
年平均成長率
医薬品開発製造受託事業

General Hospital Products
GHP
Gross Profit
GP
GS26
Growth Strategy 26
HCConsumer Healthcare
IV
Intravenous Injection
JPY
Japanese Yen
KPI
Key Performance Indicator
M
Million
ME
Medical Engineering
OR
Operating Room
PCI
Percutaneous Coronary Intervention
PD
Peritoneal Dialysis
PIVC
Peripheral Intravenous Catheter
PJProject
PLAJEX Ready-to-Fill Polymer Syringe
QOL
Quality of Life
RFID
Radio Frequency Identifier
ROE
Return on Equity
ROIC
Return on Invested Capital
SASB
Sustainability Accounting Standards Board
SMBG Self-Measurement of Blood Glucose
S&OP
Sales and Operations Planning
TBCT
Terumo Blood and Cell Technologies
TIS
Terumo Interventional Systems
TM
Trademark
TMCS
Terumo Medical Care Solutions Company
TRI
Trans Radial Intervention
USD
U.S. Dollar

継続的血糖モニタリング
医薬品製造受託事業
持続皮下インスリン投与
薬剤取扱時の暴露防止デバイス
共通価値の創造カーディオバスキュラー事業
医薬品と医療機器を組み合わせた製品
薬物送達システム
糖尿病事業
デジタル技術による予防・診断・治療など
1株当たりの当期利益
ユーロ
会計年度
ホスピタルカンパニー

3 / 15English

Meaning in Japanese
医療器
粗利益
5カ年成長戦略ヘルスケア事業
静脈注射
日本円
重要業績評価指標百万
医用工学機器 (ポンプなど)手術室
経皮的冠動脈インターベンション
腹膜透析
留置針
プロジェクト
薬剤充填用注射器 (プラスチック加工)
生活の質
近距離無線通信を用いた自動認識技術
自己資本利益率
投下資本利益率
サステナビリティ会計基準審議会
自己血糖測定血液・細胞テクノロジーカンパニー
テルモインターベンショナルシステムズ
メディカルケアソリューションズカンパニー
手首の血管からのカテーテル治療
米ドル

Looking Back on Current Mid- to Long-term Growth Strategy
Revenue

Target High single-digit growthof current mid- to long-

Adj. Operating profit

Adj. ROE

Double-digit growth

Maintain 10%+5.5%10%+

term growth strategy

ResultBased on
FY21 forecast

5.9%*Adjusted EPS result: 137 JPY (Target: 135 ~ 150 JPY)

Major achievements and challenges• Steadily progressed with the preparation of new businesses that will drive future growth
M&A of Bolton Medical (C&V), Full-scale launch of CGM in Japan (GH), Invested in solutions for source plasma market (TBCT), etc.

• Revenue and adjusted operating profit targets were not achieved due to COVID-19©TERUMO CORPORATION

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Celebrating our 100th founding anniversary:
5-Year Growth Strategy with a 10-Year Vision

GS26 FY22~26

Strengthen existing businesses andfirmly invest in the futureCompanyCorporate

FY27~31

Strengthen corporate foundationand generate solid profit from highgrowth businesses

Lead paradigm shift in medicalcare and make a leap towarda “New Terumo”

Strengthen existingbusinesses
Establish and accelerate high-growth businesses
Explore new business opportunities (innovation)
Strengthen corporate foundation©TERUMO CORPORATION

FY32~

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Terumo’s Focus: “Paradigm Shifts in Healthcare”

DiseaseTimeline

Technology Rapid increase in living withchronic diseases, due to global
improvement in average life spanand super-aging population indeveloped countries

 Improvement of long-term QOL

 Increasing adoption ofbiopharmaceuticals,
regenerative medicine, cell andgene therapies

structure changes

 Overcoming the deteriorationof organs and body functions
that accompanies aging©TERUMO CORPORATION

changes Prevention and prognosis monitoring Personalized disease management(Patient Journey)

6 / 15changes

 Wide adoption of personalized
medicine through evolution of
genomic medicine and AI

Vision for the Next 10 Years

From Devices to Solutions
Delivering solutions to 21st-century healthcare challenges

Solving problemsof medical settings
What we have started to work on

 Optimization of
intra-hospital infrastructures
 Building ecosystems for new
therapies such as cell and genetherapies
 Evaluation systems that contribute tohealth economics©TERUMO CORPORATION

Developing healthcare
ecosystem

Improving patient QOL

 Further improvement ofless-invasive treatments
 Infection control
 Data utilization for diagnostics andtherapy optimization
 Optimal delivery for new drugs

 Disease management:

7 / 15– Endovascular therapy for whole body
– Diabetes, kidney disease, cancer, etc.
– Overcoming deterioration of body functions

 Personalized care that accompanies
the patient journeyVision for the Next 10 Years

From DevicesToSolutions

Focus in solutions: The 3Ds

01

DeliveryHigh value-added biologicalaccess and delivery for advanced
medical care

©TERUMO CORPORATION

02

DigitalDisease-based approach
focused on improving long-term
patient QOL (Patient Journey)

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Deviceuticals

TM

Maximize drug effectiveness throughinnovative devices

Celebrating our 100th founding anniversary:
5-Year Growth Strategy with a 10-Year Vision

Highlights of
5-Year Growth Strategy©TERUMO CORPORATION

9 / 155-Year Financial Targets
GrowthProfitability

Capital efficiency

Highsingle-digit

20%+10%+RevenueGrowth(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

10 / 15ROIC(achieve in 5 years)

Maintain ROE 10% or moreGrowth Drivers in GS26
Group-wide revenue
CAGR
Terumo Corp.

High single-digit
High single-digit
Middle single-digit
Near double-digit

C&V
GHTBCT

Growth drivers
Business segment (approx. 80% of growth)
C&V therapy

8065

AccessTBCT innovations~60

Alliance+300 B JPY

35Diabetes

8

Geographic segment (approx. 50% of growth)
120U.S.
China40

Client segment
FY21FY26* 1 USD = 107 JPY, 1 EUR = 128 JPY©TERUMO CORPORATION(B JPY)

B2B* Outside Japan revenue ratio: 70% (FY26)

75(excluding hospitals)

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Strong Push to Raise Group-wide ProfitabilityGroup-wide profit
improvement(SG&A)
Group-wide profit +1.0%
improvement(Production)

Effect of non-recurring
expenses (EU-MDR, etc.)
Business and productmix improvement20~%

+1.0%

+0.7%

+1.0%

-0.7%

17.5%

Strengthen investment in R&D
Proactively address environmental issues

FY26

FY21
* 1 USD = 107 JPY, 1 EUR = 128 JPY©TERUMO CORPORATION

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Commitment to Sustainability Management

ESG

CSV

Linked to operations:

Linked to business growth:Foundation supporting value creation
Set concrete KPIs
ECarbon neutrality
Making effective use of resources

SEnsuring the quality, safety,
and stable supply of products andservices
Promoting diversity etc.

G

Promoting compliance etc.

Social value creation
Set concrete monitoring items
Increasing adoption of medical
technologies and services andimproving access to healthcare
Providing healthcare that is closelyaligned with life of individuals
Co-creating a sustainable healthcare
systemContinuous follow-up from a long-term perspective
Commit by assigning a management member to each KPI. Embed in performance evaluation
and reflect in compensation©TERUMO CORPORATION

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Accelerate Innovation

Accelerate innovation by strategically and consistently combining short-, mid-, andlong-term internal R&D with M&A and startup investments

InternalR&D

GrowthStrategy

ExternalInvestment Not only in interventions and US

but also other businesses and global

Contribution timing
to growth

Short- to midterm
Long-term©TERUMO CORPORATION

Company R&D

Harmonize

M&A

Improvement of existing products
Expand market share

Acquisition of new businesses

Corporate R&D

Investment in startups

Development of new technologies
Solution development

Acquisition of new technologies
Including Japan, China, and India

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Cash Allocation

Capital investment

430~480 B JPY
FY22~26
OperatingCash Flow
800~900 B JPY

Prioritize growth and infrastructure investment
to support GS26
Approx. 50% will be invested forCDMO, Plasma Innovations, C&V production expansion

Dividend

130~180 B JPY

Dividend payout ratio to exceed 30%

Acquisitions, shareholder returns, etc.
Funding©TERUMO CORPORATION

Share buyback will be carried out in consideration ofmarket and financial conditions
Prioritize debt as the first option of fund raising for M&A
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